MINUTES
                                                                              Regular Meeting September 6, 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
Vice Chairman Mathena called the meeting to order at 9:01 am at the Anderson City Council Chambers, Anderson, CA. Commissioners Farr, Fust, Haynes, Kehoe, and Jones were present. Commissioners Baugh and Morgan were absent. Executive Officer Amy Mickelson, Attorney Jim Underwood and Clerk Marissa Jackson were present as staff. Alternate Commissioner Russell was present as a member of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Mathena led the Pledge of Allegiance.

PUBLIC COMMENT
Public comment was opened at 9:02 am. Michelle Bonnewell and Barbara Briggs addressed the commission regarding the Fall River Valley Community Services District’s Sphere of Influence Proposal. Peter Scales spoke about past experiences with the County and LAFCO. Public comment was closed at 9:13 am.

CONSENT CALENDAR
By motion made (Commissioner Kehoe) and seconded the Commission approved the consent calendar as presented. Commissioner Fust stated that he would abstain from the minutes as he had not been present at the previous meeting.

SPECIAL STUDIES AND REPORTS
Report on Upcoming or Potential LAFCO Activity
Ms. Mickelson reported that the Spring Gulch Annexation to ACID and the Mayers Memorial Hospital District Annexations are both awaiting tax exchange negotiations and resolutions prior to being set for hearing. Matt Rees from Mayers Memorial Hospital District stated that he did not fully understand the tax-exchange process and it has caused him a delay in the proposal.

Ms. Mickelson further reported that the Fall River Valley CSD Sphere of Influence Amendment is still being reviewed and has items awaiting revision. She discussed the specific issues of the Environmental Review fee remaining as unpaid and the latent powers activation request as still missing. At 9:45, the Commission allowed the public to comment on this specific item. Attorney Mark Atlas and Board Members David Hall and Sky Snyder spoke for the District. Mr. Atlas specifically outlined the points made in his August 3, 2012 letter to LAFCO. Public comment was closed at 10:22 am. Commissioner Haynes moved that the 2006 resolution chronicling activated powers be amended or replaced to address the issue of latent powers to reflect, based on facts recently presented by the applicant that appear to support a change to LAFCO’s certified list of active powers, that parks powers had been exercised by the District prior to and as of the 2005, and that this is therefore not a latent District power; that the standard Environmental Impact Fee of $750 be waived in light of the unique facts of this application that include but are not limited to the fact that the District has served as the lead agency for CEQA review; and that the matter be set for hearing on November 1, 2012. Under discussion of the motion Commissioner Kehoe voted no and the motion passed. Commissioner Kehoe observed that in order to move forward in a spirit of harmony and community accomplishment the one thing required was to slay individual and corporate egos and move forward in the spirit of cooperation, both on behalf of the district and LAFCO otherwise we will continue to submerge ourselves in this debilitating acrimony which does no one any good.

At 10:39 am the Commission took a recess.

At 10:45 the Commission returned from recess. Commissioner Mathena expressed his personal apology to Ms. Mickelson for what he has observed and understands she has endured in the form of personalized verbal and written attacks by Fall River CSD supporters that have been directed at her during the pending SOI application process, and requested that the Commission be informed if any such attacks continue. Commissioner Kehoe stated that he was in no way intimidated by the threat of a lawsuit. He expressed hope the Commission will continue to do what it believes is right regardless of whether there is any threatened legal action as a result. Ms. Mickelson stated that she should be able to go to the restroom without being belittled and threatened. She expressed concern that threats and harassment directed at her is escalating and becoming increasingly personal. Commissioner Kehoe stated that considering the fact that the Commission’s employee has put them on notice that she feels threatened and harassed by one or more Fall River CSD supporters, and as such questioned Attorney Underwood as to what course of action the Board needed to take. Mr. Underwood responded that he believed it would be best to have that conversation with the Chair in a more private session, and to follow-up as then determined appropriate.

Sphere of Influence Update Plan and Schedule
The Executive Officer reported the following Sphere of Influence (SOI) Update Plan has been created based on the expected workload and agency considerations. The plan is to have all SOI’s updated within two years. By motion made (Commissioner Mathena) and seconded the plan was approved.

OPERATIONS & ADMINISTRATION 
Consideration of Audit and Audit Committee RFP Responses

Ms. Mickelson reported that four RFPs had been received for the Audit and one for the Audit Committee. Commissioner Haynes made a motion to delay the vote and send the matter before the Budget Committee. The motion was approved.

Policy and Procedure Update: Records Retention Policy Amendment
The Executive Officer reported that clarification was needed regarding electronic copies and presented the following verbiage: “All permanent records as indicated by the Records Retention Policy will be maintained as originals for as long as they physically viable. An electronic version of the document will suffice if and when deemed appropriate and necessary by the Executive Officer.” By motion made (Commissioner Fust) the update was passed unanimously.

OTHER BUSINESS
Assignment of CALAFCO Business Delegate and Alternate
Ms. Mickelson recommended nominating Commissioner Mathena as the voting delegate and Commissioner Russell as the alternate. The motion to support the staff recommendation was made by Commissioner Fust and was approved by the Commission.

COMMISSIONER ANNOUNCEMENTS
Commissioner Haynes noted that she would not be present at the December 6th meeting. Commissioner Fust announced that he will no longer tolerate attacks on staff and will leave the meeting, even if it means losing the quorum.

ADJOURNMENT
There being no further business, Vice Chairman Mathena adjourned the meeting at 11:06 am.

ATTEST:

Marissa Jackson 
Clerk to the Commission

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