LAKEPORT, Calif. – This week the Lakeport City Council will hold two special meetings in order to deal with a utility expansion fee deferral agreement and an omission on the city manager’s new contract, and to hold an orientation for its newly elected members.
The meetings will take place at 5 p.m. Tuesday, Nov. 27, and 5:30 p.m. Thursday, Nov. 29, in the council chambers at Lakeport City Hall, 225 Park St.
On the Tuesday agenda is an agreement with Lakeport Pacific Associates, which is requesting a utility expansion fees deferral agreement with the city.
Lakeport Pacific Associates is planning a $5.3 million senior affordable housing project on Martin Street and has asked the city to defer charging it the utility expansion fees in the project’s early stages.
City Manager Margaret Silveira told the council at its Nov. 13 meeting that the agreement would defer a high interest rate on the firm’s construction loan.
The council had put off making a decision at that time over concerns about how the firm had advertised for local contractors, as the deferral agreement refers to “best efforts” to hire local. City staff said Lakeport Pacific Associates had only put out a notice three days ahead of the deadline.
Despite those concerns, Silveira said it’s an excellent project for seniors and meets the city’s affordable housing criteria.
According to the Community Development Director Richard Knoll’s report to the council for Tuesday’s meeting, a company principal indicated that the end of the Lakeport Redevelopment Agency has led to financing issues for the project.
As a result, Lakeport Pacific Associates is now seeking more than the original two-year deferral agreement.
Knoll said the company is requesting that the agreement be enhanced to include a 15-year $150,000 deferral fee loan at 3-percent interest with payment to be made out of the project's residual receipts, which Knoll explained are excess revenues generated by the operation of the housing project after all other debt service obligations and expenses are paid.
Knoll said the water and sewer expansion fees to be paid to the city is $496,096; the agreement would defer $346,096 of that for a period not to exceed two years from the date of the agreement or until a
request for building occupancy is made. The deferral loan would cover another $150,000 of the $496,096.
“In exchange for the deferral, the developers will use best efforts to build the affordable housing project which is consistent with City housing policy as set forth in the Lakeport General Plan, would be consistent with State Housing Policy and would also bring added financial benefit to the local economy through the use of local tradespersons and vendors,” Knoll said.
He said city staff is recommending that the developer supply a report within 30 days of the start of construction and updates every 30 days thereafter. The developer also should pay $1,000 for staff time to prepare and monitor the obligations.
If the fees aren’t paid upon any request for occupancy or a call for a final inspection, the fees are due within two years; if they aren’t paid then, they will be secured as a lien on the property, Knoll suggested.
Also on Tuesday, the council will consider an amendment to Silveira’s new contract, which extends through May 30, 2016. The new contract inadvertently omitted mention of Silveira’s health benefits.
The council also will hold a closed session for labor negotiations city City Attorney Steve Brooks.
On Thursday, the council will hold a special meeting for a new council member orientation.
On Nov. 6 three new council members were elected – Kenny Parlet, Martin Scheel and Marc Spillman.
The councilmen-elect will have the chance on Thursday to meet department heads – if they haven’t already – as well as receive an overview of city department functions and a report of current projects.
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