MINUTES

Regular Meeting June 7, 2012

(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
Chairman Baugh called the meeting to order at 9:01 am at the City of Shasta Lake Council Chambers, 4488 Red Bluff Street, Shasta Lake, CA. Commissioners Farr, Kehoe, Haynes, Mathena, Morgan and Yarbrough were present. Commissioner Jones arrived a few moments later and Alternate Commissioner Yarbrough took a seat in the audience. Executive Officer Amy Mickelson and Clerk Marissa Jackson were present as staff. Alternate Commissioners Russell and Yarbrough were present as members of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Kehoe led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

NOTICED PUBLIC HEARINGS
Fiscal Year 2012-13 Final Budget Hearing

The Executive Officer presented the Fiscal Year 2012-13 Final Budget and confirmed that all required notices were made. Commissioner Baugh thanked Commissioners Haynes, Mathena and Morgan for their work on the Budget Committee.

Chairman Baugh acknowledged the written public comment received and advised that copies were available to those in attendance. The comments submitted by Fall River Valley CSD are hereby adopted as a part of this record. At 9:08 am, the Public comment period on Fiscal Year 2012-13 Final Budget was opened. There being no comments, the Public comment period was closed at 9:08 am.

By motion made (Commissioner John Mathena) and seconded the Fiscal Year 2012-13 Final Budget was approved unanimously.

MINUTES
The minutes of April 5, 2012 were presented. By motion made (Commissioner Brenda Haynes) and seconded the Commission approved the April 5, 2012 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2011-12 3rd and 4th Quarter Transaction Register

The Fiscal Year 2011-12 3rd and 4th Quarter Transaction Register was distributed for adoption and review. By motion made (Commissioner David Kehoe) and seconded the 3rd and 4th Quarter Transaction Register was approved.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated March 31, 2012 and April 30, 2012; Tri Counties Bank: two statements dated April 17, 2012 and May 17, 2012; and LAIF: two statements dated March 2012 and April 2012. By motion made (Commissioner Stephen Morgan) and seconded the bank statements were approved as presented.

CHANGES OF ORGANIZATION AND/OR REORGANIZATION
Report on Upcoming or Potential LAFCO Activity
Ms. Mickelson reported that the Spring Gulch Annexation to A.C.I.D. is ready for hearing, pending the completion of a Tax Exchange Agreement.

Mayers Memorial Hospital District is expected to submit their application within the week and are working on a tight time frame, pending Commission approval, to be included on the upcoming tax rolls. For that to occur, the item must be final by October 1, 2012.

Fall River Valley Community Service District’s Sphere of Influence Amendment application has been submitted and is currently being reviewed for completeness. Staff will communicate any further needs to the District and once determined as complete, will begin proceedings on the proposal.

OPERATIONS & ADMINISTRATION
Authorization to Open Separate Checking Account at US Bank and Close Tri Counties Account
Ms. Mickelson reported that Tri Counties Bank will no longer waive monthly fees if a minimum balance of $2500 is not maintained. US Bank can provide the same type of checking account/debit card free of charge. Staff recommended (1) opening a separate account at US Bank with an initial deposit of $2000 and (2) closure of the existing Tri Counties Bank account. A motion for approval was made (Commissioner John Mathena) and passed unanimously.

Formation of Audit Committee
Ms. Mickelson reported that there has been on-going discussion over the past few years regarding the need for an audit; however none has been performed due to high costs and low transaction volumes. Staff recommends formation of an Audit Committee to review procedures, transactions and financial policies which would assist with due diligence benchmarks and future audit preparation. Staff also recommends circulation of an RFP to local audit experts requesting that they serve on the Audit Committee and receive an hourly contract rate for services. Since the last audit was performed four years ago, Commissioner Kehoe stated that we should have a full audit completed and then form a committee afterward. A motion was made (Commissioner Larry Farr) to proceed with an RFP that includes two proposals, one for a full audit and one to serve on an Audit Committee. Commissioner Kehoe states that he will vote in favor of the motion, but supports the idea of a formal audit, not an informal review. The motion passed unanimously.

COMMISSIONER ANNOUNCEMENTS
Commissioner Farr welcomed LAFCO to City of Shasta Lake’s new Council Chamber facilities.

STAFF ANNOUNCEMENTS
Ms. Mickelson reminded the Commission that the next LAFCO Meeting will be held on Thursday, August 2, 2012 at 9:00 am at Anderson City Council Chambers, unless a special meeting is necessary prior to that date.

CLOSED SESSION
The Commission convened to closed session at 9:26 am pursuant to Government Code Section 54954.5(e) to for a Public Employee Performance Evaluation of the LAFCO Executive Officer.

CLOSED SESSION ANNOUNCEMENT
At 10:12 am the Commission reconvened to open session. Chairman Baugh announced that the closed session was conducted under Government Code Section 54954.5 and further reported that a formal review of the Executive Officer was made. He stated that the review was exceedingly positive and the Commission appreciates her efforts and are excited for and supportive of her work as the Executive Officer. Although Ms. Mickelson received high marks from every member of the Commission, no raise will be granted at this time due to the difficult economic times. Commissioner Farr requested that the results of the vote be disclosed for the record. There was a motion made by Commissioner David Kehoe to support the recommendation of the Executive Committee, which recommended that compensation rates be maintained. The motion was seconded by Commissioner Brenda Haynes. Commissioners Brenda Haynes, Patrick Jones, David Kehoe and Les Baugh voted in favor of the motion. The motion was opposed by Commissioners John Mathena, Stephen Morgan and Larry Farr.

ADJOURNMENT
There being no further business, Chairman Baugh adjourned the meeting at 10:15 am.

ATTEST:

Marissa Jackson
Clerk to the Commission