MINUTES
Special Meeting October 14, 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 Redding Council Chambers, 777 Cypress Ave, Redding, CA. Commissioners Baugh, Dickerson, Fust, Gover, Haynes, Kehoe and Webster were present. Executive Officer Mickelson and Clerk Smith were present as staff. Alternate Commissioner Morgan and Mathena 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.

OPERATIONS & ADMINISTRATION
Possible Relocation of the LAFCO Office

At the September 30, 2010 LAFCO meeting discussion regarding the available office space and the Executive officer’s recommendation occurred. At that time Commissioner Haynes provided additional MLS listings to the Commission and it was determined that it was too difficult to make a decision at that time given the additional information to consider. The Commission directed a Committee, comprised of Chairman Gover, Commissioner Baugh and the Executive Officer, to further investigate other potential properties that would meet the needs of LAFCO and report the findings back to the full Commission.

Ms. Mickelson stated that at the conclusion of the September 30, 2010 meeting, she met with two realtors and began to research the MLS listings provided by Commissioner Haynes. Additionally she extended negotiations with the two Goodwater properties shown on the summary report. Both were willing to freeze the 3% increase for the first two years of a three-year lease and to provide one month free rent with a three year lease signed.

Ms. Mickelson stated that she would still recommend the 2516 Goodwater (Suite A) property as the best option available and suggested that in the future LAFCO could possibly sub-lease office space if the right arrangement came alone. The agency would save approximately $11,500 over a three year period with

out any sub-lease situation. She reminded the Commission that each month this is delayed LAFCO will be paying an additional $302 per month in lease payments in order to remain at the current location.

Commissioner Baugh asked if the total savings excluded the cost of janitorial. Ms. Mickelson stated that based on the Commission’s discussion at the September meeting she had excluded the cost of janitorial. Commissioner Baugh stated his disappointment about not being able to find a lease that didn’t include any increases. He originally advised the Executive Officer that he would not be supportive of any lease that included a rate increase; however, taking into consideration the additional expense of staying at the current location he was ambivalent about a lease that included a rate increase.

Commissioner Haynes asked if LAFCO could sign a two year lease and revisit this item in the future. In response, Ms. Mickelson stated she researched properties based on a three year lease and many of the concessions the property owners were willing to make was due to the fact that a three year lease was being negotiated.

Commissioner Kehoe stated that he was supportive of the Goodwater location and was concerned that a sub-lease option was included in the lease. Ms. Mickelson stated that a sub-lease option had been verbally approved and she would see to it that it was included in the lease should the Commission decide to move forward.

Commissioner Fust supported the Goodwater location. Commissioners Webster and Dickerson concurred.

By motion made and seconded (Fust/Baugh) the Commission directed the Executive Officer to send a Thirty-Day Notice of Intent to Vacate 1737 Yuba Street, Suite B, dated October 15, 2020; to negotiate and sign a lease for 2516 Goodwater, Suite A; and to begin the proceedings to move the LAFCO office and all LAFCO storage materials to the 2516 Goodwater, Suite A location.

COMMISSIONER ANNOUNCEMENTS
There were no Commissioner announcements.

STAFF ANNOUNCEMENTS
The next Regular LAFCO Meeting will be held on Thursday, December 2, 2010 at the Redding Council Chambers.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 9:17 am.

Respectfully submitted,

Jessica Smith
Clerk to the Commission

MINUTES
Special Meeting September 30, 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 Anderson Council Chambers, 1887
Howard Street, Anderson, CA. Commissioners Baugh, Fust, Gover, Haynes, Kehoe and Webster were present. Commissioner Dickerson was absent. Executive Officer Mickelson and Clerk Smith were present as staff. Alternate Commissioner Morgan and Mathena were present as members of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Webster led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

MINUTES
The minutes of August 05, 2010 were presented. By motion made and seconded (Baugh, Fust) the
Commission approved the August 05, 2010 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2010-11 1st Quarter Transaction Register
The Fiscal Year 2010-11 1st Quarter Transaction Register was presented for review and adoption. By motion made and seconded (Baugh, Kehoe) the Commission approved the Fiscal Year 2010-11 1st Quarter Transaction Register.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated July 31, 2010 and August 31, 2010; Tri Counties Bank: one statement dated August 17, 2010; and LAIF: two statements dated July 2010 and August 2010. By motion made and seconded (Fust, Haynes) the Commission approved the bank statements as presented.

SPECIAL STUDIES AND REPORTS
Municipal Services Reviews: City of Anderson Administrative Draft
Ms. Mickelson presented the Commission with a draft copy of the City of Anderson Municipal Services Review. She stated that this document is a starting point and not a final document. She added that there will be changes made to the language and to the determinations.

Commissioner Baugh asked about the response received from Cottonwood FPD regarding the MSR. Ms. Mickelson stated that the issue raised by the Cottonwood FPD is not an issue with the City of Anderson; rather the issue is with the Anderson FPD. She added that the concern from the Cottonwood FPD is an item of continuing discussion and will be addressed during the sphere process.

Commissioner Fust asked if the Planning Area referred to in the document was the LAFCO Sphere of Influence. Ms. Mickelson stated that is not the Sphere of Influence, it is an area that the City desires to serve in the future.

Commissioner Kehoe asked what the estimated timeline of completion would be. Ms. Mickelson felt that the revised final City of Anderson MSR would likely come before them in December or January.

Commissioner Haynes asked if there were four or five lift stations, as the document stated both numbers. Ms. Mickelson stated that there were five lift stations and any reference to four would be corrected. Commissioner Haynes added that she felt there were some bold statements made by LAFCO in the document.

At this time, Mark Teag, the consultant who prepared the City of Anderson MSR addressed the Commission. He stated that much research and time has gone into compiling the MSR. He added that LAFCO provided him with a starting point for the document and acknowledged that each agency has it’s own vocabulary and expected there to be changes to the language of the document. The Commission thanked Mark Teag for his work on the MSR.

By motion made and seconded (Baugh, Kehoe) the Commission approved the City of Anderson Draft
Municipal Services Review.

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.

OPERATIONS & ADMINISTRATION
Possible Relocation of the LAFCO Office
Chairman Gover stated that Commissioner Haynes provided some additional office rental locations to the Commission and staff just prior to the meeting.
At the direction of the Commission during the recent budget discussion, Ms. Mickelson spoke with the current landlord about a possible rent reduction. She stated that the only concession the landlord was willing to make was a freeze on the CPI raise that was included in the current lease agreement for the

current period and for a future contract. She informed the Commission that the current cost for the approximately 600 square foot office space is approximately $2.12 per square foot, which includes shared common areas, storage space within the building, and shared restroom facilities which are cleaned weekly.

Ms. Mickelson reported meeting with various realtors and researching available office locations. She found four potential locations and provided a comparison summary to the Commission. She stated that there will be several one-time costs associated with a move and estimates these costs to be approximately $2,000. Her recommendation to the Commission was to either stay at the currently location or begin the necessary steps in order to lease the 2516 Goodwater, Suite A property.

Commissioner Fust asked when the current lease expired. Ms. Mickelson stated that the lease expires on November 15, 2010. Additionally she stated that if the Commission should decide to move forward, LAFCO would need to give a thirty day notice. Commissioner Fust then commented that most of the real estate listings that Commissioner Haynes provided were smaller than 500 square feet and did not feel that that would be enough space for the LAFCO office to function efficiently. He felt it was too soon to make a decision. Commissioner Kehoe concurred.

Commissioner Kehoe asked if the current landlord understood that LAFCO would be moving offices if they were not able make any adjustments to the rent. Ms. Mickelson stated that the landlord was aware of LAFCOs intentions and he felt that due to potential future development he would not have any issues leasing out the office space. Commissioner Kehoe added that he was not supportive of a lease that included a 3% annual rent increase. Ms. Mickelson reminded the Commission that there have been no lease negotiations and potentially the 3% annual rent increase could be negotiated. Discussion followed.

By motion made and seconded (Baugh/Fust) the Commission directed a modified Executive Committee, comprised of Chairman Gover, Commissioner Baugh and the Executive Officer, to further investigate other potential properties that would meet the needs of LAFCO and report the findings back to the full Commission.

Ms. Mickelson reminded the Commission that LAFCO should give notice by October 15, 2010. In response, Commissioner Kehoe suggested calling a special meeting for this one item. The full Commission concurred.

OTHER BUSINESS
CALAFCO Board Nominee Report
Ms. Mickelson informed the Commission that Commission Baugh withdrew his nomination and will not be pursing the position due to the cost involved, as well as being assured that there were multiple County nominees for the region.

COMMISSIONER ANNOUNCEMENTS
Commissioner Haynes asked the Executive Officer where staff was at in regard to providing a Special District training. The Executive Officer stated that staff is diligently working with CSDA but has found that they are unwilling to lower their costs. Staff is still looking into other ways to move this forward in order to provide training at a reasonable cost.

STAFF ANNOUNCEMENTS
Ms. Mickelson asked if the Commission would be available for a Special Meeting October 14, 2010 to review the findings of the modified Executive Committee.

The next Regular LAFCO Meeting will be held on Thursday, November 4, 2010 at the Redding Council
Chambers.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 10:20 am.

Respectfully submitted,

Jessica Smith Date
Clerk to the Commission

MINUTES
Regular Meeting August 05, 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
Vice Chairman Fust called the meeting to order at 9:00 am at the Shasta County Administrative Board Chambers, 1450 Court Street, Suite 263, Redding, CA. Commissioners Baugh, Dickerson, Fust, Haynes, Kehoe and Webster were present. Commissioner Gover was absent. Executive Officer Mickelson and Clerk Smith were present as staff. Alternate Commissioner Morgan was present as a member of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Baugh led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

MINUTES
The minutes of June 10, 2010 were presented. By motion made and seconded (Baugh, Kehoe) the Commission approved the June 10, 2010 minutes.

BUDGET & FISCAL AFFAIRS
Fiscal Year 2009-10 4th Quarter Transaction Register
The Fiscal Year 2009-10 4th Quarter Transaction Register was presented for review and adoption. By motion made and seconded (Dickerson, Kehoe) the Commission approved the Fiscal Year 2009-10 4th Quarter Transaction Register.

Fiscal Year 2010-11 1st Quarter Transaction Register
The Fiscal Year 2010-11 1st Quarter Transaction Register was presented for review and adoption. By motion made and seconded (Haynes, Baugh) the Commission approved the Fiscal Year 2010-11 1st Quarter Transaction Register.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated May 31, 2010 and June 30, 2010; Tri Counties Bank: two statements dated June 17, 2010 and July 18, 2010; and LAIF: two statements dated May 2010 and June 2010. By motion made and seconded (Kehoe, Baugh) the Commission approved the bank statements as presented.

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. Ms. Mickelson stated that she is meeting with several districts in the coming weeks expects multiple MSRs to come before the Commission at the September meeting.

OPERATIONS & ADMINISTRATION
Shasta LAFCO Illness & Injury Prevention Manual
Ms. Mickelson reminded the Commission that in 2007 Shasta LAFCo joined SDRMA for Worker’s Compensation coverage. A requirement of the application to self-insure was the adoption of an Illness and Injury Prevention Manual. This requirement was overlooked during the application process and is being brought back to the Commission for resolution, at the request of SDRMA.

Ms. Mickelson stated that the document contained highlighted areas that indicate items that need to be addressed in order to complete the policy. She added that the highlighted areas would be finalized by the end of August 2010.

By motion made and seconded (Kehoe, Haynes) the Commission approved the Shasta LAFCO Illness and Injury Prevention Manual as amended. Under Reporting Safety Issues, the amendments made were replacing the word or with and, removal of if the Executive Officer is not available, and adding job related in the second paragraph. Under Weapons, adding an exemption for law enforcement. The addition of a category entitled Vehicle Safety, which directs employees to obey the rules of the law.
Chairman Gover arrived at 9:15 a.m. and resumed control of the meeting. Resolution for Authorization to Self-Insure
By motion made and seconded (Baugh, Kehoe) the Commission adopted Resolution No. 10-03, authorizing application for a Certificate of Consent to Self-Insure.

OTHER BUSINESS
Call for CALAFCO Board Nominees
Ms. Mickelson presented the Commission with the CALAFCO Nomination and Election Procedures and Forms. She stated that monies are not budgeted for a Commissioner to attend the necessary meeting should he or she be elected to the CALAFCO Board.

Commissioner Kehoe asked Ms. Mickelson what the estimated expenses would be for LAFCO should a Commissioner be elected as a CALAFCO Board Member. Ms. Mickelson estimated that $5,000 – $6,000 would need to be budgeted.

Chairman Gover polled the Commission. Commissioner Baugh expressed interest in being nominated for the CALAFCO Board but what hesitant due to the cost and felt it wasn’t practical at this time. Discussion followed.

By motion made and seconded (Kehoe, Fust) the Commission nominated Commissioner Baugh to the

CALAFCO Board of Directors pending further investigation in regards to funding.

Designation of CALAFCO Voting Delegate
By motion made and seconded (Baugh, Kehoe) the Commission designated Ms. Mickelson for the

CALAFCO Voting Delegate.

COMMISSIONER ANNOUNCEMENTS
None

STAFF ANNOUNCEMENTS
The Executive Officer provided a brief report to the Commissioners regarding LAFCO activities that do not require the action of the Commission. This was an information item only. No action was taken.

The next LAFCO Meeting will be held on Thursday, September 30, 2010 at the Redding Council Chambers.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 9:35 am.

Respectfully submitted,

Jessica Smith Date
Clerk to the Commission

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

MINUTES
Regular Meeting April 1, 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 Shasta County Administrative Center Board Chambers, 1450 Court Street, Suite 263, Redding, CA. Commissioners Baugh, Dickerson, Fust, Gover, Haynes and Webster were present. Commissioner Kehoe was absent. Executive Officer Mickelson, Clerk Smith and Council Johnson were present as staff.

PLEDGE OF ALLEGIANCE
Commissioner Dickerson led the Pledge of Allegiance.

PUBLIC COMMENT
There was no public comment submitted.

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

Ms. Mickelson reported that she met with the Budget Committee that was formed at the February 2010 LAFCO meeting and prepared a draft budget based on their recommendations. She stated that Commissioner Baugh specifically requested a budget that would not call for any increases to those entities that share the LAFCO cost. Ms. Mickelson created that budget as Option #2.

Ms. Mickelson stated that while the staff recommended draft budget does call for marginal increases to the entities that support LAFCO, she noted that the budget represents an 18% reduction from the current Fiscal Year. This is in addition to a 10% reduction made last year as well, with an overall reduction of 28% in two years. Ms. Mickelson reminded the Commission that contributions were frozen for the current and past two fiscal years due to the fact that LAFCO had generous reserves that were being spent to continue operations. Based on her calculations those reserves are projected to end the current fiscal year at the Commissions recommended 10% of expenditures.

Alternate Commissioner Mathena, who served as Chair of the Budget Committee, addressed the Commission. He stated that the Budget Committee met numerous times and made several recommendations, such as the consolidation of the GIS expenses.

Commissioner Dickerson stated that the Commission requested that a Budget Committee be formed and give a recommendation to the full Commission. He further stated that while contribution increases are an unpleasant reality, they are necessary since LAFCO is a mandated agency as well as the fact that this is what a majority of the Budget Committee recommended.

Commissioner Baugh, who served on the Budget Committee, stated he did not feel it was appropriate at this time to ask any entities to come up with additional funds. He stated that he did not think it was necessary to keep the office open to the public. Additionally, he felt that the $17,000 budgeted for the office lease could be significantly reduced. He believed LAFCO should make the sacrifices necessary in order to maintain the current contribution rates. He stated that he didn’t specifically support Option #2 but he supported not increasing rates. He suggested possibly having the City of Redding house Shasta LAFCO.

Commissioner Fust concurred with Commissioner Baugh and supported freezing the rates at the present amount. He stated that when the economy recovers LAFCO activity will increase. He stated that while he was not favor of Option #2, he supported the concept.

Commissioner Webster agreed that he supports keeping the contribution rates as low as possible; however he did not agree that LAFCO business has slowed down. He questioned if LAFCO could maintain the Analyst position with such a drastic cut in hours and without offering a benefit package. He felt it was necessary to keep the LAFCO office open in order to maintain availability to the public. He stated that if LAFCO doesn’t increase contribution rates that there will be considerable increases of 25%-40% in the coming years.

Chairman Gover stated that he felt Option #2 was thought provoking but didn’t feel that that option was the best proposal for LAFCO.

Commissioner Haynes stated that she would have difficulty supporting any increase in contributions. She agreed that $17,000 for the office lease is one of the largest expenses and would like to explore other options in regard to office space. She too didn’t like the idea of Option #2 but supported the concept of freezing contributions.

Commissioner Dickerson pointed out that even with an exclusion of rent altogether, there would still be a shortage of $2,300 in the Option #2 budget. Council Johnson pointed out that LAFCO should review the rental lease to verify the terms of the lease and to see if there is a buy out option available.

Ms. Mickelson informed the Commission that based on some of the figures from the State Controllers Office for the 07/08 fiscal year; it appears that there will be a shift in contributions for the Special Districts. This is due largely because both Bella Vista Water District (BVWD) and ACID reported significantly lower revenues to the State Controllers Office. She explained that the approximately $7,000 decrease in contributions from BVWD and ACID will be spread out among the remaining Special Districts.

At 9:35 a.m., the Public comment period on the 2010-11 Draft Budget was opened.

Phil Browning of Centerville CSD thanked the Commission for providing a copy of the Draft Budget to Centerville CSD. He asked if the monies budgeted for GIS is for a system already set in place. He requested that the Commission possibly spread out any necessary increases over the next couple of years.

In response to Mr. Browning’s question, Ms. Mickelson stated that the GIS system is still in a pending status. LAFCO has a couple of options before moving forward, however the cost of these options will determine which route LAFCO proceeds with.

Char Workman-Flowers of Clear Creek CSD stated that since the contributions for BVWD and ACID would be decreasing, this would most likely increase LAFCO contributions for Clear Creek CSD. She informed the Commission that Clear Creek CSD is not increasing their budget this year.

Alternate Commission Morgan, who also serves as a board member for the Shasta Lake FPD, stated that the Shasta Lake FPD will not have a revenue increase. He stated that the District had some lawsuits this past year which required the District to spend additional funds. The Shasta Lake FPD budget will not be increasing this year and any type of increase LAFCO would approve would be a detriment to the District.

Alternate Commissioner Mathena brought the Commissions attention to two items. The first was not budgeting any money for the reserve account. The second was the issue of the building lease and possibly moving the LAFCO office. He felt that that it was not reasonable or possible to find a new location with a significant rent decrease. He stated that the Commission has been living on the reserves and reiterated his support for the recommended draft budget that staff presented to the Commission. He felt it was a tight but necessary budget.

Commissioner Webster asked if this budget had any monies budgeted for reserves. Alternate Commissioner Mathena stated that it did not. Ms. Mickelson clarified the issue stating that the budget did not have any additional monies budgeted for reserves. The reserves that were previously budgeted are being held in the LAIF account.

Alternate Commissioner Farr suggested using some of the reserve funds in order to maintain the budget. In regard to the GIS line item, he felt that the budgeted amount of $4,000 is a best guess but it truly uncertain. He added that the costs associated with moving the LAFCO office, such as staff time involved in the office relocation as well as the possible cost to break the lease, should be considered. He did not support cutting staff and benefits. He concluded by saying that he supported the recommended draft budget.

Phil Browning stated that Clear Creek CSD used their reserves as part of their budget.

9:53 a.m. the Public comment period was closed.

Ms. Mickelson reminded the Commission that some numbers are likely to change for the 2010-11 Final Budget since many of the vendors were unable to provide LAFCO with accurate figures at this point in the draft budget process.

Commissioner Fust disagreed with Commissioner Webster regarding LAFCO activity. He wanted to know if there were any expenses such as the GIS services that could be put off for future years. Ms. Mickelson stated that if it wasn’t going toward GIS services for Sphere Reviews the monies would be put toward mapping instead. Commissioner Fust asked if LAFCO could put off Sphere Reviews and GIS services altogether. Ms. Mickelson stated that LAFCO is currently 15 years behind the mandate in regard to Sphere Reviews. Commissioner Fust stated that LAFCO could put off the Sphere Reviews and be 16 or 17 years behind. Commissioner Dickerson stated that GIS services are estimated at $4,000 this year, if this expense were to be put off for 2 or 3 years the cost is likely to increase significantly. Discussion followed.

Commissioner Baugh provided a motion to adopt Budget Option #2, in concept, with contributions totaling $186,000. Commissioner Fust provided the second. The motion failed for lack of a majority. Commissioners Dickerson, Gover and Webster dissented.

Commissioner Haynes left and was replaced by Alternate Commissioner Morgan at 10:07 a.m.

Commissioner Dickerson reiterated the fact that this was a draft budget and there will be adjustments to the final numbers. He suggested a partial increase in contributions combined with utilizing reserves in order to fund the recommended draft budget. He added that he didn’t want to lose staff and felt that the cuts being proposed in Budget Option #2 would likely cause that to happen. He stated that each year LAFCO supplements its budget with reserve funds it’s sending the message to member agencies that there is no need for them to budget any increase to cover actual LAFCO costs. Commissioner Webster concurred in regard to utilizing reserve funds and avoiding cutting staff. Discussion followed.

Commissioner Dickerson moved to adopt the recommended draft budget, directing staff to further review each line item for any possible reduction. Commissioner Webster provided the second. The motion failed for lack of a majority. Commissioners Baugh, Fust and Morgan dissented.

Commissioner Fust suggested using $10,000 from the reserve account and cutting the remainder from either GIS, rent and/or travel expenses in order to maintain the current contribution rates. Commissioner Baugh concurred.

At 10:35 a.m. Chairman Gover called for a 5-8 minute break.

At 11:43 a.m. the meeting resumed.

By motion made and seconded (Fust, Dickerson), the Commission approved a budget to the total income recommendation of $204,000, utilizing $10,000 from the reserve account to make up the difference, thereby allowing the opportunity of little to no increase. The Commission directed the Executive Officer to look for ways to reduce the budget as much as possible in order to maintain the current contributions totaling $186,000. Commissioners Dickerson and Webster dissented.

MINUTES
The minutes of February 4, 2010 were presented. By motion made and seconded (Baugh, Webster) the Commission approved the February 4, 2010 minutes. Commissioner Baugh abstained.

BUDGET & FISCAL AFFAIRS
Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated January 31, 2010 and February 28, 2010; Tri Counties Bank: two statements dated February 17, 2010 and March 17, 2010; and LAIF: two statements dated January 2010 and February 2010.

Commissioner Webster requested that staff include a cover sheet for the bank statements showing a balance summary of each of the bank accounts.

Ms. Mickelson stated that a cover sheet would be included in future packets.

Fiscal Year 2009-10 3rd Quarter Transaction Register
The 3rd Quarter Transaction Register was presented for review and adoption.

By motion made and seconded (Baugh, Webster), the Commission approved the bank statements and the 3rd Quarter Transaction Record as presented.

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. Ms. Mickelson stated that several MSRs will be coming before the board at the June meeting.

Commissioner Webster stated that the City of Anderson’s MSR is still moving forward and should be ready in the coming months. This was an information item only. No action was taken.

OPERATIONS & ADMINISTRATION
Report on Issue of LAFCO Quorum
Executive Officer Mickelson informed the Commission that as per adopted LAFCO Policy a quorum is the following: A majority of the Commission (four) shall constitute a quorum for the transaction of business; however, unless specifically otherwise provided, the Commission shall take no action except upon the affirmative vote of at least three members. This was an information item only. No action was taken.

Legal Opinion on MSR Exemption
Ms. Mickelson reminded the Commission that at the February 2009 meeting Council Johnson provided an opinion regarding the exemption for certain Districts that Shasta LAFCo had adopted in 2000 that waived their requirement to undergo Municipal Service Reviews.

Ms. Mickelson stated that she had recently spoken with several other LAFCOs who had adopted similar exemptions. She asked if the exemption had ever been legally challenged and they stated that the exemption had not been challenged. No action was taken on this item.

COMMISSIONER ANNOUNCEMENTS
Commissioner Baugh suggested staff look at LAFCOs current fee schedule and possibly changing those rates. He stated that he wasn’t here when the fee schedule was originally adopted and would like a clearer picture of how the fee structure was determined.

Council Johnson suggested a possible fee study.

Commissioner Gover stated that he did not want to overload the Executive Officer.

Executive Officer Mickelson asked that this issue be tabled until after the June meeting so staff could focus on the completion of the Final Budget. The Commission supported Executive Officer Mickelson’s suggestion.

STAFF ANNOUNCEMENTS
Ms. Mickelson advised the Commission the next Special LAFCO meeting is tentatively scheduled for Mary 6, 2010 at the City of Anderson. The Final Budget hearing will be on June 10, 2010 at the City of Redding.

CLOSED SESSION
Chairman Gover call for any public comment on the Closed Session item as noticed. There was no public comment. By motion made and seconded Dickerson/Baugh the Commission convened to Closed Session at 11:10 a.m. to discuss Public Employee Performance Evaluation (pursuant to Government code Section 54954.5(e)) Title: Executive Officer.

CLOSED REPORT
At 11:27 a.m. the Commission reconvened to open session. Commissioner Webster reported that Ms. Mickelson received an employee evaluation of above average. There was no salary increase offered as Ms. Mickelson had previously informed the Commission of her intention to waive any type of salary increase for herself due to the current economic climate.

ADJOURNMENT
There being no further business, Chairman Gover adjourned the meeting at 11:28 am.

Respectfully submitted,

Jessica Smith
Clerk to the Commission

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