MINUTES
Regular Meeting August 4, 2011

(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
Acting Chairman Mathena called the meeting to order at 9:00 am at the Redding City Council Chambers, 777 Cypress Avenue, Redding, CA. Commissioners Farr, Morgan and Yarbrough were present. Commissioners Baugh, Fust, Gover, Hartman, Haynes and Kehoe were absent. Executive Officer Mickelson and Clerk Marissa Jackson were present as staff. Alternate Commissioner Jones was present as a member of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Yarbrough led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

MINUTES
The minutes of June 2, 2011 were presented. By motion made and seconded (Farr, Yarbrough) the Commission approved the June 2, 2011 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2010-11 4th Quarter Transaction Register
The Fiscal Year 2010-11 4th Quarter Transaction Register was presented for review and adoption. Executive Officer Mickelson went over the transaction register to clarify the order of check numbers.

Fiscal Year 2011-12 1st Quarter Transaction Register
The Fiscal Year 2011-12 1st Quarter Transaction Register was distributed for adoption and review. Ms. Mickelson advised that deposits from special districts were now listed individually and would continue to be in future registers.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated May 31, 2011 and June 20, 2011; Tri Counties Bank: three statements dated May 17, 2011, June 19, 2011 and July 17, 2011; and LAIF: three statements dated April 2011, May 2011 and June 2011.

By motion made and seconded (Farr, Morgan) the Commission approved the transaction registers and bank statements as presented.
Adopted August 4, 2011 Minutes

CHANGES OF ORGANIZATION AND/OR REORGANIZATION
Report on Upcoming or Potential LAFCO Activity
Ms. Mickelson reported that the Elk Trails Annexation has been completed.

Ms. Mickelson advised that Fall River Valley CSD has circulated a document discussing a Sphere of Influence Amendment, as well as numerous annexations and consolidation options. LAFCO submitted comments on the study and will provide a summary as to their action once it has been determined. LAFCO staff met with some members of their board in June. There are concerns that CSD services cannot be provided to the entire valley.

The two annexations to ACID have moved through the board and are awaiting formal applications.

OPERATIONS & ADMINISTRATION
Audit RFP
Ms. Mickelson reported as to the responses received pursuant to the Request for Proposals for an audit as well as findings regarding the use of an Audit Committee in place of or in coordination with the independent audit process. It was found that many LAFCOs use an Executive Committee structure to conduct procedural and financial reviews outside of a formal audit investigation. Ms. Mickelson believes it is wise to conduct an independent audit on occasion as the Commission closely reviews transactions. This item will be placed back on the agenda so LAFCO staff can contact local CPAs to determine whether or not any would be interested in serving on an Audit Committee.
By motion made and seconded (Yarbrough, Farr) the Commission approved the action.

Web RFP
Ms. Mickelson reported as to the responses received pursuant to the Request for Proposals for website design and development. Staff considered referenced sites and options offered within each response and determined that Innovative Web Designs would best meet LAFCO needs.

By motion made and seconded (Farr, Morgan) the Commission approved the action.

OTHER BUSINESS
CALAFCO Business Delegate
Ms. Mickelson reported that no commissioner responded that they would be attending the 2011 CALAFCO Conference in Napa August 31 through September 2. As such, Ms. Mickelson requested to be nominated to vote on behalf of the Commission. Commissioner Mathena stated that he might be able to attend. Commissioner Farr recommended authorizing Ms. Mickelson to vote.

By motion made and seconded (Farr, Yarbrough) the Commission approved the nomination.

California Forward: Smart Government July Update
Executive Officer Mickelson reported that it appears statewide LAFCO concerns have been heard and it would appear that a recommendation has been made to expand LAFCO authority to evaluate local agency performance. She will continue to monitor the situation closely and report back to the Commission with changes as they occur.

Election of Chair and Vice Chair

Ms. Mickelson reported this item was included on the agenda in error. Elections are scheduled for June 2012.

COMMISSIONER ANNOUNCEMENTS
There were no commissioner announcements.

STAFF ANNOUNCEMENTS
Ms. Mickelson thanked the Commissioners for attending the meeting, and Commissioner Mathena for acting as chair. She also reminded the Commission that the next LAFCO Meeting will be held on Thursday, October 6, 2011 at 9:00 am at Shasta County Board of Supervisors.

ADJOURNMENT
There being no further business, Chairman Mathena adjourned the meeting at 9:50 am.

Respectfully submitted,

Marissa Jackson 
Clerk to the Commission