MINUTES
Special Meeting June 10, 2010
(These minutes are not intended to be a verbatim transcription of the proceedings and discussion associated with the business on the Commission’s agenda; rather, what follows is a summary of the order of business and general nature of testimony, Commission deliberation, and action taken.)

CALL TO ORDER/ROLL CALL/INTRODUCTIONS
Chairman Gover called the meeting to order at 9:05 am at the Redding City Council Chambers in Redding, California. Commissioners Baugh, Dickerson, Fust, Gover, Haynes, Kehoe and Webster were present. Executive Officer Mickelson and Clerk Smith were present as staff.

PLEDGE OF ALLEGIANCE
Commissioner Webster led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

PUBLIC HEARING: Consideration and Adoption of 2010-2011 Final Budget as Required by Government Code Section 56381(c)

Ms. Mickelson presented the Commission with three budget options as requested by the Commission at the April meeting. After reviewing the line items in the three budget options presented, the Executive officer explained that she was recommending a budget that calls for minimal increases to the entities that support LAFCO while maintaining the analyst position at thirty hours per week. This budget option still represented an 18% decrease from the current Fiscal Year.

Commissioner Baugh asked Ms. Mickelson which budget reflected the Commission’s direction given at the April meeting. He felt that staff had not followed the Commission’s clear direction.

Commissioner Fust responded to Commissioner Baugh’s question and stated that the budget staff recommended is a hybrid of the adopted draft budget as well as the direction given at the April meeting to keep contributions as low as possible.

Discussion regarding the budget options commenced among the Commission and staff. When the issue of office space arose, Ms. Mickelson informed the Commission that LAFCO’s building lease is signed through November 2010. She reported that the landlord agreed to a CPI freeze if LAFCO signed another three year lease.

Commissioner Webster stated that he would like to see LAFCO explore different office rental locations and would like to see the actual cost per square foot. Commissioner Fust added that there is a fairly significant cost with moving and the rent would have to have a substantial reduction in order for it to benefit LAFCO financially.

Commissioner Fust asked why GIS is still being budgeted this fiscal year. He suggested putting off the expense until the economy improved.

Ms. Mickelson explained to the Commission that LAFCO has always budgeted funds for mapping or planning; however this year it was consolidated into a GIS line item. She added that due to the current and upcoming sphere reviews GIS was going to be a necessary expense.

Commissioner Fust asked why the spheres are being done now.

In response to Mr. Fust’s question, Ms. Mickelson stated that LAFCO is legislatively required to complete sphere reviews. Additionally, she has been working with six of the southern county fire protection districts and if sphere reviews were to halt at the end of this fiscal year, LAFCO would lose funds that were already invested in GIS mapping and would result in postponing the sphere reviews for up to eigteen months.

Commissioner Kehoe asked how the special district contributions are calculated.

Ms. Mickelson stated that the figures are calculated by the County Auditor based on the legislatively directed process. The reported incomes contained within the most recently released “Special Districts Annual Report” published by the State Controller are used to make these calculations. She added that due to the varying revenues as reported, it is expected that some of the Districts who bore a brunt of the contributions will see a decrease in their contributions. Thusly other entities will see an increase in contributions to make up that difference in the overall calculation, even if the total Special District contribution amount remains the same.

Commissioner Haynes stated that she would like to see contributions stay at $62,000 and would rather see $3,000 pulled from the reserve account instead of increasing the contribution rates.

Commissioner Baugh expressed his desire to keep contribution rates at $62,000. He asked if mapping for the south county fire protection districts could be completed on paper rather than GIS.

Ms. Mickelson stated that the process does start on paper. However, when working with six different districts, using GIS to easily move lines allows each district to have a visual of the projected sphere change, thereby allowing the sphere process to run much smoother. She felt that it would be a move backwards to use survey maps over GIS and it would likely cost as much, if not more.

Commissioner Baugh thanked Ms. Mickelson for her explanation. Additionally, he felt that LAFCO could find an office rental space that could reduce LAFCO expenses. While he acknowledged that there would be a one time cost of moving, he pointed out the savings would be seen over time with the reduced rental cost. He also felt that the recommended budget presented should have reflected the Commission’s direction and that the Executive Officer’s recommended budget should have been presented in a separate column.

Chairman Gover responded to Commissioners Baugh’s comment and stated that the Executive Officer did present a budget that reflected the Commission’s direction. Commissioner Fust concurred.

Commissioner Fust asked what would then be left in reserves if $3,000 was pulled from the reserves account to supplement the budget.

Ms. Mickelson stated that it would be close to the recommended 10% of the total budget, but a final number would not be available until all June expenses are paid.

Commissioner Dickerson stated that much of LAFCO’s work is dependent upon GIS and felt it was a necessary expense. He stated that the cost of GIS is only going to go up in the future and felt that this was imperative for LAFCO to budget it now, as well as complete as much work as possible at present rates. Additionally, he stated that he felt the Executive Office presented a budget that reflected the Commission’s direction at the April meeting. He asked if the $3,000 budgeted for membership fees was necessary and if it took priority over the line item budgeted for GIS.

Ms. Mickleson stated that the membership to CALAFCO is an invaluable tool and that membership to SDRMA is required in order to maintain insurance coverage.

Commissioner Dickerson asked about the line item of Transportation/Travel. He questioned if it was still a necessary expense.

Ms. Mickelson replied that this number has been reduced by 50% for the last two years. She felt it was important to keep staff educated in order to keep up with the legislative changes. Ms. Mickelson pointed out that the recommended draft budget presented in April in comparison to today’s recommended budget reflects a $10,500 decrease overall in contributions. She added that now is a prefect time to work on Spheres, since the project workload has lightened. Ms. Mickelson reminded the Commission that contribution increases would likely need to happen and she felt that a $1,000 increase to each of the entity types was a moderate option.

At 9:48 a.m., the Public comment period for the 2010-11 Final Budget was opened.

Phil Browning of Centerville CSD stated that, during the hearing process, all his questions were answered and that he appreciated LAFCO’s effort to keep costs as low as possible.

Steve Morgan, board member for the Shasta Lake FPD, expressed his desire to keep fees as low as possible so the special districts aren’t additionally stressed during this difficult economic times.

Alternate Public Member, John Mathena stated that he concurred with Commissioner Dickerson and reminded the Commission that they are to operate LAFCO and not attempt to balance all the other entities budgets. He added that it would only take one lawsuit to drain the reserves account.

9:55 a.m. the Public comment period was closed.

Commissioner Haynes moved to adopt the recommended draft budget and reduce the line item of Transportation/Travel to $0, from $3,000, in order to keep contributions at $62,000. Commissioner Fust provided the second. The motion failed for lack of majority. Commissioners Dickerson, Baugh, Webster, Gover and Kehoe dissented.

By motion made and seconded (Haynes, Fust), the Commission approved Budget Option #2, maintaining contribution levels at $62,000 and utilizing an additional $3,000 from the reserve account. Commissioner Baugh dissented.

At 10:05 a.m. Chairman Gover called for a 5-8 minute break.

At 10:12 a.m. the meeting resumed.

MINUTES
The minutes of April 1, 2010 were presented. By motion made and seconded (Baugh, Dickerson) the Commission approved the April 1, 2010 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2009-10 4th Quarter Transaction Register
The 4th Quarter Transaction Register was presented for review and adoption. Commissioner Haynes asked why check numbers 1375 & 1385 were not listed on the Transaction Register. Ms. Mickelson stated that check number 1375 was probably written during the 3rd Quarter and check number 1385 had not been written as of yet. She stated that staff would verify and report back to the Commission.

By motion made and seconded (Haynes, Baugh), the Commission approved the 4th Quarter Transaction Register as presented.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated March 31, 2010 and April 30, 2010; Tri Counties Bank: two statements dated April 18, 2010 and May 17, 2010; and LAIF: two statements dated March 2010 and April 2010.

Commissioner Haynes asked staff why check number 1349 had not cleared in the March or April US Bank statement. In response, Ms. Mickelson stated that the check may have cleared on the February 2010 bank statement. She stated that staff would verify and report back to the Commission.

By motion made and seconded (Fust, Haynes), the Commission approved the bank statements as presented.

OTHER BUSINESS
Proposed CALAFCO Bylaw Amendment, re: Regionalizing CALAFCO Board Elections
Ms. Mickelson presented the Commission with information regarding regionalization of the CALAFCO Board. She stated that the amendment would only change how the CALAFCO board members are elected and recommended that Shasta LAFCO support this amendment. Additional, she stated that the current CALAFCO Board fully supports this amendment and is willing to waive their current terms should the Bylaw Amendment win approval.

By motion made and seconded (Baugh, Webster), the Commission supported the Bylaw Amendment that would regionalize the CALAFCO Board Elections.

Election of Chair
Commissioner Kehoe nominated Chairman Gover to continue serving as Chairman and Commissioner Fust to continue serving as Vice Chairman.

By motion made and seconded (Kehoe, Webster) the Commission elected Commissioner Gover as the Chairman and Commissioner Fust as the Vice Chairman.

Ms. Mickelson informed the Commission that their term would continue through June of 2011.

COMMISSIONER ANNOUNCEMENTS
Commissioner Webster stated that the City of Anderson is continuing to move forward in its developments and expects that some projects will come before LAFCO in the coming months.

STAFF ANNOUNCEMENTS
Ms. Mickelson advised the Commission the next Regular LAFCO meeting is scheduled for August 5, 2010 at the Shasta County Administrative Center.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 11:00 am.

Respectfully submitted,

Jessica Smith
Clerk to the Commission