MINUTES
Regular Meeting February 4, 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 9:00 am at the City of Anderson Council Chambers, 1887 Howard Street, Anderson, CA. Commissioners Dickerson, Fust, Gover, Haynes and Webster were present. Commissioners Baugh and Kehoe were absent. Executive Officer Mickelson and Clerk Smith were present as staff.

PLEDGE OF ALLEGIANCE
Commissioner Haynes led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

MINUTES
The minutes of December 10, 2009 were presented. By motion made and seconded (Haynes, Dickerson) the Commission approved the December 10, 2009 minutes. Commissioner Webster abstained.

BUDGET & FISCAL AFFAIRS
Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated November 30, 2009 and December 31, 2009; Tri Counties Bank: two statements dated December 17, 2009 and January 18, 2010; and LAIF: two statements dated November 2009 and December 2009. By motion made and seconded (Dickerson, Fust) the Commission approved the bank statements as presented.

Fiscal Year 2009-10 2nd and 3rd Quarter Transaction Register
The 2nd and 3rd Quarter Transaction Register was presented for review and adoption. By motion made and seconded (Webster, Fust) the Commission approved the Fiscal Year 2009-10 2nd and 3rd Quarter Transaction Register.

Fiscal Year 2009-10 Mid Year Budget Update
Ms. Mickelson reviewed with the Commission the Mid Year Budget for Shasta LAFCO. She noted that LAFCO is on track to meet budget expectations and plans to continue to do so through the end of the fiscal year due to staff maintaining a minimalistic and very careful approach to spending.

By motion made and seconded (Webster, Fust), the Commission approved the Fiscal Year 2009-10 Mid Year Budget Update as presented.

Formation of Budget Committee
Ms. Mickelson stated that during the 2009-2010 Budget process the Commission determined that a Budget Committee would be a useful addition to the budget creation and review process. She estimated that there would be approximately 2-3 meetings prior to April, 2010 in which the appointed Committee members would be asked to participate in. Discussion followed.

By motion made and seconded (Fust Dickerson), the Commission appointed Commissioner Baugh, Alternate Commissioner Farr and Alternate Commissioner Mathena to serve on the Budget Committee. The Chair also designated Alternate Commissioner Mathena to serve as Chair of the Committee and Commissioner Kehoe to serve as an alternate Committee member.

CHANGES OF ORGANIZATION AND/OR REORGANIZATION
Report on Upcoming or Potential Proposals
The Executive Officer provided a brief report to the Commissioners regarding upcoming and expected proposals. This was an information item only. No action was taken.

SPECIAL STUDIES AND REPORTS
Municipal Services Reviews
Ms. Mickelson provided the Commission with the current MSR update. Commissioner Haynes asked if staff had received an answer in regard to the Commission’s authority to exempt specific types of districts. Ms. Mickelson stated that she recently spoke with Counsel Johnson regarding this matter and expects to have a report from legal counsel within the coming weeks.

OPERATIONS & ADMINISTRATION
CFPPC Form 700 Distribution and Instructions
Ms. Mickelson reminded the Commissioners that the Form 700 is needed in the LAFCO office no later than April 1, 2010 with an original signature.

OTHER BUSINESS
Update on CALAFCO Board Action on Regional Proposal
Ms. Mickelson presented the Commission with an update on the CALAFCO Board Action on Regional Proposal. No action was taken.

Possible LAFCO- Sponsored Educational Workshop for Special Districts
Ms. Mickelson stated that over the past year, LAFCO has been contacted numerous times from the Grand Jury as well as several special districts in regard to potentially offering education opportunities. Ms. Mickelson stated that she has been in contact with California Special Districts Association and discussed the possibility of a joint effort to provide an education opportunity in Shasta County.

In regard to regard to the cost of such a workshop, Ms. Mickelson stated that the participant’s registration would cover the actual cost of the workshop and LAFCO would work diligently to keeps registration fees as low as possible.

The Commissioners expressed their support for the proposed workshop. Commissioner Fust stated that many board members are not familiar with the Brown Act and this would be a good opportunity to help educate them.

Commissioner Dickerson suggested finding ways to make attendance as high as possible. He suggested possibly utilizing the media as an effective means.

By motion made and seconded (Haynes, Webster), the Commission directed staff to seek input and weigh interest from the special districts in the area in regard to a LAFCO sponsored educational workshop.

COMMISSIONER ANNOUNCEMENTS
Commissioner Webster announced that the first house was sold in the Vineyards subdivision.

Commissioner Farr asked staff to research if a quorum is based on the majority of members present at a Commission meeting or if it’s based on membership. He also stated that he was on the CSDA board for 6-7 years and would be available to help in anyway with the workshop staff proposed at today’s meeting.

STAFF ANNOUNCEMENTS
The next LAFCO Meeting will be held on Thursday, April 1, 2010 at the Shasta County Administrative Center. A special meeting will likely be held on May 6, 2010. The location of that meeting will be announced when known.

Ms. Mickelson stated that each of the Commissioners will be receiving a mailed self- evaluation for the Executive Officer along with a blank evaluation for the Commissioners to complete and return to the Chair. Full instructions will be included with the evaluation.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 9:45 am.

Respectfully submitted,

Jessica Smith
Clerk to the Commission

MINUTES
Regular Meeting – November 5, 2009
(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 9:00 am at the City of Redding Council Chambers, 777 Cypress Ave, Redding, CA. Commissioners Baugh, Dickerson, Farr, Fust, Gover, Haynes & Kehoe were present. Executive Officer Mickelson, Counsel Johnson and Clerk Smith were present as staff.
 

PLEDGE OF ALLEGIANCE
Commissioner Kehoe led the Pledge of Allegiance.
 

PUBLIC COMMENT
There was no public comment submitted.
 

CHANGES OF ORGANIZATION AND/OR REORGANIZATION
LAFCO File #09-2, CSA #6 – Jones Valley (Elk Trail) Reorganization
Ms. Mickelson presented the Commission with LAFCO File #09-02, CSA #6 – Jones Valley (Elk Trail) Reorganization. Shasta County submitted an application to LAFCO requesting initiation of proceedings for reorganization, seeking to annex 194 parcels (approximately 1,742 acres) into CSA #6 and concurrently detaching a portion of the proposal area from the Bella Vista Water District Sphere of Influence. The proposed reorganization was presented as a conditional proposal, pending subsequent Proposition 218 proceedings to fund necessary water system upgrades. The proposal area is generally located three miles north of Highway 299 on Dry Creek Road in the Bella Vista area. The project encompasses the Elk Trail East and West neighborhoods.The annexation was proposed because a majority of the existing private wells in the project area fail to yield sufficient or quality potable water. This was an inhabited, non‐100% consent application with some affected agencies. Comments received from Bella Vista Water Distrit(consenting to their Sphere amendment) and from the Shasta County Fire Department (supporting the proposal) were attached and incorporated herein. Several comments from affected property owners and residents were attached as well.

Commissioner Dickerson asked if there had been any opposition from any affected agencies. Ms. Mickelson responded that there had been no stated agency opposition, only support.

Commissioner Kehoe requested a presentation from Pat Minturn, Director of Public Works of Shasta County.

Mr. Minturn explained that this project has been a long time coming and County staff has been diligently working to get this project moving forward and at the place that it is today. There were two landowner straw polls conducted in the past three years, both which were supported by over 80% of landowners. The project is projected to cost 10 million dollars.

Approximately 3.5 ‐ 6.5 million dollars is expected to be granted by various State and Federal funding sources. The State has committed to loan the remaining funds at 0% interest for 30 years. It is projected that with a best‐case funding scenario, the total cost per parcel will be around $20,000, which is approximately $60 a month.

After, Mr. Minturn’s presentation, Commissioner Farr asked upon what grounds a Commissioner would be able to vote no on the proposed project. Counsel Johnson stated that it has to do with the factors set forth in the Government Code in light of the evidence before the Commission today. If the majority of the factors are met by this proposal, then the Commission should approve the project. If not, then the Commission would need to deny the project, based on the factors provided.

Executive Officer Mickelson stated that those factors are delineated in the staff report per Government Code §56668. Ms. Mickelson then read the factors as mandated by Government Code §56668 at Commissioner Kehoe’s request.

Commissioner Haynes asked when the process for Proposition 218 would begin and where the nine month time period comes from; as found on the page 4, section 14, of the application submitted to LAFCO.

Mr. Minturn stated that as of right now it is known when the process would begin. The nine month time period is needed to select & hire an engineer; as well as allowing time for the selected engineer to gather necessary information and prepare their report.

At 9:46 am, the Public Comment period was opened.

Ms. Kathy Jalquin opposed the project and did not agree with the studies that were done on the wells in the Elk Trail area.

At 9:53 am, the Public Comment period was closed.

By motion made and seconded (Kehoe/Haynes), the Commission unanimously approved the CSA #6

Jones Valley (Elk Trail) Reorganization, LAFCO file# 09‐02, conditioned upon subsequent Proposition 218 proceedings, as recommended by staff.
 

OPERATIONS & ADMINISTRATION
Consider Secondary Responses to Legal Request for Proposal
At the October 1, 2009 LAFCO meeting, the Commission requested clarification on a few items regarding the provision for legal services proposed from John Kenney and Elizabeth Johnson. Specifically the issues of availability during Commission meetings and how that availability would be billed were at interest. The Commission reviewed the responses provided by both Mr. Kenney and Ms. Johnson. Discussion followed.

By motion made and seconded (Fust/Farr), the Commission approved contracting with Elizabeth Johnson for legal services. A contract will be negotiated and brought back to the Commission for approval.

Report on Shasta LAFCO Budget Notification Procedures
Ms. Mickelson reported that during the 2009 Budget process, there was some confusion, and ultimately some mistakes made by LAFCO staff in regard to noticing the Draft & Final Budget. Staff has apologized publically for those issues and has offered assurance to the Commission that the errors will not be repeated. The Commission accepted that assurance and staff has implemented some changes to support that assurance.

At the October 1, 2009 LAFCO meeting, some members of special districts asked that those assurances be shared publically and therefore, the Commission asked that the item be placed on a future agenda.

Ms. Mickelson shared the changes that had been made to remedy the situation. (1) A goal to add every special district to our email agendas listing by the end of 2009. This increases the disbursement of our agendas which contain pertinent information, such as the budget schedule. (2) The addition of the task of noticing special hearings and budget processes will be added to the Analyst’s job description at her upcoming review and will be listed as a specific goal for attainment. (3) Perhaps, most importantly, a reminder system via Microsoft Outlook, that schedules the notifications via appointments.

Commissioner Haynes stated that she felt the situation had been sufficiently addressed.

Commissioner Farr disclosed that he had met with Phil Browning of Centerville CSD and David Coxey of Bella Vista Water District regarding this situation. He asked staff if LAFCO was required to mail the Draft & Final Budget and who receives agenda notices as well as full packets.

Ms. Mickelson stated that we are obligated to mail the Draft & Final Budget to the County, Cities and Special Districts. She stated that the agenda is sent to agencies who have requested such. Approximately 88% of the Special Districts receive LAFCO agendas either via e‐mail or USPS. A lesser number of Special Districts receive full packets. The Draft and Final Budgets are also noticed in the Record Searchlight and the agenda is available on the LAFCO website.

Commissioner Baugh stated that mistakes happen, staff has acknowledged that & will work diligently follow policy & procedures.

Mr. Browning of Clear Creek CSD again stated that he did not receive a copy of the Draft Budget. He asked the Commission if they had received a copy of a letter addressed to Chairman Gover that he had dropped off at the LAFCO office two days prior to the August 6, 2009 meeting. The Commission assured Mr. Browning that they indeed did see a copy of the letter immediately after the August 6, 2009 meeting.

Commissioner Dickerson asked Special Districts give more consideration in regard to timing when submitting correspondence.

Mr. Coxey of Bella Vista Water District stated the he was concerned about the increase of LAFCO contributions over the years for BVWD. The staff report was received and filed. 

COMMISSIONER ANNOUNCEMENTS
Commissioner Farr reported on the CALAFCO conference that he recently attended in place of Ms. Mickelson. Commissioner Farr stated that that idea of a CALAFCO regional structure had not been acted upon at the conference.

Commissioner Haynes thanked the Alternate Commissioners for attending the LAFCO meetings.

STAFF ANNOUNCEMENTS
The next Special LAFCO Meeting will be held on Thursday, December 10, 2009 at the City of Redding.

CLOSED SESSION
None

CLOSED SESSION REPORT
None

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 10:43 am.

Respectfully submitted,

Jessica Smith Date
Clerk to the Commission

MINUTES

Regular Meeting – October 1, 2009

(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 9:00 am at the Shasta Board of Supervisors Chambers, 1450 Court Street, Suite 263, Redding, CA. Commissioners Baugh, Dickerson, Farr, Gover, Haynes, Kehoe, and Morgan were present. Commissioner Fust was absent. Executive Officer Mickelson and Clerk Smith were present as staff.

PLEDGE OF ALLEGIANCE
Commissioner Haynes led the Pledge of Allegiance.

PUBLIC COMMENT
Johanna Trenerry, a Clear Creek CSD board member, addressed the Commission about the draft budget notification and asked if the letter generated by Clear Creek CSD regarding this had been circulated. Commissioner Gover stated that it had. She then stated that in respect to the August 6, 2009 minutes, page 3, last paragraph, Commissioner Kehoe did not say the letter should be placed on a later agenda if necessary, rather that it needed to be placed on the next agenda.

Char Workman‐Flowers of Clear Creek CSD requested to know what steps were taken to remedy the draft budget notification process and requested that this item be put on the next agenda. David Coxey of Bella Vista Water District (BVWD) stated that in 2004 BVWD’s contributions to LAFCO was $11,000 and it is now over $20,000. Mr. Coxey stated that BVWD is facing its own financial struggles and suggested LAFCo charge fees based on a fee service type approach. Ms. Kathy Jalquin stated residents in the Elk Trail area have come to her home and told her that they voted yes on the straw poll since it was not binding but would vote no on the ballot. Ms. Jalquin then requested copies of e‐mails to and from Commissioner Haynes, Clerk Smith and Executive Officer Mickelson. Phil Browning of Centerville CSD requested that the minutes be changed to reflect the fact that the draft budget wasn’t circulated to special districts.

MINUTES
The minutes of August 6, 2009, August 24, 2009 and September 3, 2009 were presented. By motion made and seconded (Baugh, Haynes) the Commission approved the August 6, 2009, August 24, 2009 and September 3, 2009 minutes. Commissioner Baugh abstained from the August 6, 2009 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2008-09 June Transaction Register
The FY 2008‐09 June Transaction Register was presented for review and adoption. By motion made and seconded (Haynes, Farr) the Commission approved the FY 2008‐09 June Transaction Register.

Fiscal Year 2009‐10 1st Quarter Transaction Register
The 1st Quarter Transaction Register was presented for review and adoption. By motion made and seconded (Baugh, Kehoe) the Commission approved the 1st Quarter Transaction Register.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated July 31, 2009 and August 31, 2009; Tri Counties Bank: two statements dated July 17, 2009 and August 19, 2009; and LAIF: two statements dated July 2009 and August 2009. Commissioner Baugh asked if the small amount at being held at Tri Counties Bank indicated that that account would soon be closed. Executive Office Mickelson stated that this item will be discussed at the next meeting. By motion made and seconded (Baugh, Kehoe) the Commission approved the bank statements as presented.

SPECIAL STUDIES AND REPORTS
Anderson Fire Protection District: Proposed Final Municipal Services Review
Ms. Mickelson reminded the Commission that the Anderson FPD Draft MSR was adopted in 2007. She proposed to the Commission that they adopt the Proposed Final MSR and bring it back in six months with determinations. Commissioner Haynes had some grammatical corrections for the MSR. Commissioner Baugh asked about the responses from Shasta County Fire and Cottonwood FPD. Ms. Mickelson stated that all the items have been addressed as much as they possibly can be at this time. She again recommended bringing back the item in six months with determinations after the newly appointed board has had a chance to review the document. Commissioner Kehoe expressed his persuasion to hold off on adopting the MSR when considering the letter received from Shasta County Fire. Commissioner Dickerson asked why it would be helpful for the District to adopt the MSR if there are still some questions unanswered.

Ms. Mickelson reminded the Commission that they previously had decided that they would not allow any type of jurisdictional boundary changes until an MSR is complete. By not having an adopted MSR for Anderson FPD it would but the District in a grievous position should another agency move forward with an application that could potentially affect the District’s boundary. She also acknowledged that while the District will have a new board in December, the main portion of the MSR content would not change. Chief Andy Nichols addressed the Commission and expressed his desire for the Commission to adopt the proposed MSR. He did not feel that the new board would make any changes that would dramatically affect the MSR. By motion made and seconded (Baugh, Dickerson) the Commission adopted the Anderson Fire Protection District Proposed Final Municipal Services Review, with the grammatical changes proposed by Commissioner Haynes and the condition to review the MSR in six months. Commissioner Kehoe dissented.

Municipal Services Review: Status Report
Ms. Mickelson provided the Commission with the current MSR update. This was an information item only. No action was taken.

CHANGES OF ORGANIZATION AND/OR REORGANIZATION
Cottonwood Fire Protection District: Proposed Sphere of Influence Amendment
Executive Officer Mickelson presented the proposal to add territory to the Cottonwood Fire Protection District’s Sphere of Influence. The Cottonwood Fire Protection District (the District) submitted an application to LAFCO requesting initiation of proceedings for a Sphere Amendment, proposing to add just over 25,000 acres to the current Sphere (approximately 24,000 acres), which presently shares the same boundary as the District.

The District defines the purpose of the proposed Sphere expansion to “help the District define and narrow the area to begin proper planning for future fire protection service. This would clarify which agency will likely be responsible for ensuring adequate emergency response for this underserved area … this would allow the District to focus its efforts on ensuring future fire protection services for an area that can be considered likely to be within the District’s future service area.” This was an inhabited, non‐100% consent application with many affected agencies. Comments received from affected agencies are attached and incorporated herein. This proposal was made by the District, with contractors and District staff working to prepare the application at the bequest of the FPD Board. This was not a collaborative proposal made with LAFCO Staff. No alternatives to the proposal were indicated by the District.

Although the Cottonwood Fire Protection District should be commended for their goals of future planning, this application process was limited in scope due to the lack of discussion and cooperation with other fire protection agencies, including those which currently provide services to the affected areas. Only the proposed Sphere Amendment was considered by the Cottonwood Fire Protection District as a feasible alternative. Given the conservative annexation history of the District (three annexations within the past thirty years), an addition of over 100% of territory to the Sphere seems to be unnecessary or premature at best. LAFCO staff welcomes this proposal as a starting place for a discussion regarding future growth projections and likely service providers, but feels strongly that approving such an expansive alteration to future service provision without the collaborative effort of other and current service providers (Cal Fire) in the affected area does not meet the mandates of the LAFCO mission.

Ms. Mickelson recommended a continuance of this proposal until a regional discussion can be held regarding fire protection in the Southern County. Staff recommends hosting a series of meetings and workshops, with the inclusion of GIS services to provide modeling and feasibility of options, and for LAFCO staff to act in a facilitating role to best serve the process of regional collaboration. It is the recommendation of staff that Anderson Fire Protection District, Cal Fire, Cottonwood Fire Protection District, Happy Valley Fire Protection District, Millville Fire Protection District and County representatives meet to discuss regional impacts and work together to propose Spheres and fire protection boundary modifications that will best serve and protect Southern County residents.

Commissioner Baugh asked if LAFCO Commissioners should be included in these discussions and expressed his concern about the potential cost of these meetings. Ms. Mickelson stated that LAFCO would absorb the cost incurred; however there are some monies budgeted for GIS for this type of situation. By motion made and seconded (Dickerson, Haynes) the Commission moved for a continuance of the Cottonwood Sphere Amendment proposal until a regional discussion can be held regarding fire protection in the Southern County.

Rodney Chadbon with the Cottonwood Fire Protection District apologized to the Commission for not collaborating with the agencies previously mentioned and that they were willing to do so. Mr. Chadbon explained that the District hired a consultant to give them direction on the proposal and was disappointed how things have worked out. John Stokes with the City of Anderson stated that since there is a slight overlap between the Anderson FPD and Cottonwood FPD he feels it’s imperative to engage in conversations regarding this proposal. Mike Chuchel asked that Cal Fire be included in discussions submitted to Shasta County Fire. He stated that he supported the Executive Officer’s recommendation of a continuance of this proposal until a regional discussion can be held regarding fire protection in the Southern County.

The motion for continuance was passed via voice vote. Commissioner Baugh expressed his desire to participate as a LAFCO representative during these discussions. Commissioner Dickerson made a motion for Commissioner Baugh to be a LAFCo representative. Being that the item was not agendized Commissioner Dickerson withdrew the motion.

Report on Upcoming or Potential Proposals
The Executive Officer provided a brief summary to the Commissioners regarding upcoming and expected proposals. Discussion followed. No action was taken.

OPERATIONS & ADMINISTRATION
Consider Responses to Legal Request for Proposals
Commissioner Dickerson questioned whether or not LAFCO should have an attorney present at every meeting. Commission Baugh explained that not having an attorney at every meeting came from the direction of the Commission during the budget process. This was due to limited funds and the Commissions desire to keep expenses down. Discussion followed about what capacity the attorneys would be available and any charges that would be billed to LAFCO for being on‐call. By motion made and seconded (Kehoe, Baugh) the Commission directed staff to prepare a letter to the Law Offices of Wilkins & Johnson and Kenny, Snowden & Norine for specific costs and availability for on-call legal services. Commissioner Haynes dissented.

Ms. Mickelson asked if the Commission would like the firms to address the Commission’s questions at the meeting or if a letter would suffice. The Commission agreed that a letter would be sufficient.

Consider CALAFCO Regional Structure
Commissioner Haynes asked to hear from staff about this matter. Ms. Mickelson stated that the goal of this Regional Structure would be to allow structure member LAFCOs in geographic regions to encourage communication among LAFCo commissioners and staff, increase involvement in Association activities and policies, collaborate on inter‐LAFCo policies and issues, share resources, and provide regional input to the Board on legislative issues and regional policy issues. The Commission had concerns about any potential costs associated with this. Discussion followed. By motion made and seconded (Kehoe, Baugh) the Commission directed staff to listen to the discussion at the upcoming CALAFCO conference regarding this matter, take into consideration the Commission’s thoughts from today’s meeting and vote accordingly.

COMMISSIONER ANNOUNCEMENTS
There were no Commissioner Announcements given.

STAFF ANNOUNCEMENTS
The next special LAFCO meeting will be at 9:00 am on November 5, 2009 at the City of Redding Council Chambers.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 10:40 am.

Respectfully submitted,

Jessica Smith
Clerk to the Commission