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

                                                                                            MINUTES
                                                                           Regular Meeting April 5, 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 action taken.)

CALL TO ORDER/ROLL CALL
Vice Chairman Baugh called the meeting to order at 9:00 am at the Shasta County Board of Supervisors Chambers in Redding, CA.  Commissioners Farr, Haynes, Kehoe, Jones, Mathena and Morgan were present. Executive Officer Amy Mickelson, Attorney Jim Underwood and Clerk Marissa Jackson were present as staff. Alternate Commissioners Fust, Russell and Yarbrough were present as members of the audience.

PLEDGE OF ALLEGIANCE
Commissioner Jones led the Pledge of Allegiance.

PUBLIC COMMENT
Jan Lopez, in response to a Mt. Echo quote which said all requested information had not been provided to LAFCO, stated she provided a binder to staff prior to the October 2011 meeting.

Barbara Briggs, former Fall River Valley CSD Board Member and current Treasurer stated that they had originally started work on an SOI expansion in 2008 after many management issues and are now prepared to provide information to have the work completed in a timely manner.

Sandra Jensen, Fall River Valley CSD Board Member and local business owner, reported that the District has received a partial grant and loan in the amount of $1,000,000 and as such are now facing sensitive time frames.  She stated that the District currently has rate payers and assets that are outside their boundary and would like to move toward the annexation to get in compliance.

Michelle Bonnewell, from Rochester, New York, stated that she has been watching the process and finds it very interesting how contributing factors work together and will continue to observe the process.

NOTICED PUBLIC HEARINGS
The Executive Officer presented the Fiscal Year 2012-2013 Draft Budget for review and reported that LAFCO is on track to end the year slightly below budgeted expenditures, assuming no significant unanticipated expenses arise. Staff again recommended that the Commission authorize an Audit Committee or an Independent Audit within the next fiscal year. Ms. Mickelson reported that no written comments were submitted regarding the Draft Budget. She reminded the Commission that a Draft Budget must be adopted by May 1st. After the Draft Budget is adopted, a Final Budget will be circulated to the public and presented to the Commission prior to the June 15th deadline.

At 9:20 am, the Public comment period on the Fiscal Year 2012-2013 Draft Budget was opened. 

John Van den Bergh, manager of Fall River Valley CSD stated he would like the Commission to outsource the administrative function of LAFCO as some other LAFCOs have done. 

The Public comment period was closed at 9:23 am.

Commissioner Kehoe motioned to approve a Budget Committee.  Commissioners Haynes, Mathena and Morgan volunteered to form the Budget Committee for Fiscal Year 2012-2013.  No one wished to pursue the issue of outsourcing the Executive Officer position. By motion made (Commissioner David Kehoe) and seconded, the Fiscal Year 2012-2013 Draft Budget was approved.

MINUTES
The minutes of February 6, 2012, were presented. By motion made (Commissioner David Kehoe) and seconded, the February 6, 2012, minutes were approved. 

BUDGET & FISCAL AFFAIRS
Fiscal Year 2011-12 3rd Quarter Transaction Register
The Fiscal Year 2011-12 3rd Quarter Transaction Register was presented for review and adoption. By motion made (Commissioner John Mathena) and seconded, the 3rd Quarter Transaction Register was approved.

Consideration of Checking Account Statements
Ms. Mickelson presented the following bank statements: US Bank: two statements dated January 31, 2012 and February 29, 2012; Tri Counties Bank: two statements dated February 20, 2012 and March 18, 2012; and LAIF: two statements dated January 2012 and February 2012. By motion made (Commissioner John Mathena) and seconded, the bank statements were approved as presented. 

SPECIAL STUDIES AND REPORTS
Mountain Gate CSD Final Municipal Services Review
Ms. Mickelson reported that staff had worked with the District at length on the final draft and no significant changes had been made. District Manager Jeff Cole reported to the Commission that he is happy with the document.  Commissioner Fust suggested including a schematic of the piping system on page 9 pursuant to Proposition 108 infrastructure requirements.  Staff will determine whether or not the information is available to include.  By motion made (Commissioner John Mathena) and seconded, the Municipal Services Review was approved with the prescribed changes.

Report on Upcoming or Potential LAFCO Activity
Ms. Mickelson reported that the Spring Gulch Annexation to A.C.I.D. application had been submitted and there is work pending on the tax exchange resolutions prior to the application being accepted as complete.  She recently met with the consultant and was advised that we should expect an application for the McConnell/Steiner Annexation to A.C.I.D. in the near future.

Staff has met with Mayers Memorial Hospital District regarding their potential annexation.  The District is facing stringent time lines and has indicated that they would pay the applicable costs of a special meeting, if necessary.

Ms. Mickelson further reported that she and Commissioner Russell attended a community meeting in Cassel to discuss a potential annexation by Burney Fire Protection District that may impact services currently provided by the Cassel Volunteer Fire Department/CSA 1.  No formal application has been filed with LAFCO. Commissioner Russell reported that the meeting was productive and discussions are continuing at the community level.

OPERATIONS & ADMINISTRATION
Policy and Procedure Update
Staff requested direction from the Commission regarding the following issues:

Regarding mid-term vacancies, historically the Vice Chair has assumed the responsibilities of the Chair and a new Vice Chair position has been elected, however this is not clearly stated in our policies.  By motion made (Commissioner John Mathena) and seconded the policy amendment was unanimously approved as suggested.

The Executive Committee has been comprised of varying membership (i.e., no more one member from each type of appointing agency) which is not currently delineated in policy.  By motion made (Commissioner Brenda Haynes) and seconded, the policy delineation was approved.

Staff questioned whether or not a policy should be instituted stating when or how often the third member of the Executive Committee is appointed as existing policy is silent on the issue.  Annual appointment by the Chair and approval by the Commission was approved by motion made (Commissioner John Mathena).

The LAFCO application and application standards need to be updated to reflect electronic submission and newer requirements.  Staff requested direction to make formatting and procedural changes reflecting those needs which will allow for compliance with new standards and save costs for districts. By motion made (Commissioner Brenda Haynes) and seconded, the changes were approved.

Election of Chair and Vice Chair
Due to numerous elections and appointments, the Commission was asked to hold the election of Chair and Vice Chair at today’s meeting rather than in June.  Those elected would serve 26-month terms ending in June 2014.  The Commission agreed. Commissioner Haynes nominated Commissioner Baugh as Chair and the motion was approved (Commissioner David Kehoe) unanimously as made.  Commissioner Kehoe nominated Commissioner Mathena as Vice Chair and the motion carried.

Naming of Executive Committee
The Executive Committee is comprised of the LAFCO Chair, Vice Chair and one additional member appointed by the Chair. Chairman Baugh nominated Commissioner Haynes and the motion was approved as made. 

Executive Officer Compensation Survey
This study was brought at the request of Commissioner Morgan who wanted to know the compensation of like-LAFCOs.  Ms. Mickelson advised that she had based the study on LAFCOs with similar Executive Officers positions with comparable populations and special district numbers.  She offered to include LAFCOs which are geographically closer, but reiterated that they operate differently.  Commissioner Mathena said that the study is fine as it stands. Commissioner Morgan indicated that the Budget Committee needs to address it.  The survey will be taken under advisement by the Executive Committee through the Executive Officer performance review process, as indicated by adopted policy.

COMMISSIONER ANNOUNCEMENTS
Commissioner Farr asked for a status update regarding the CALAFCO Executive Officer retirement and recruitment.  Ms. Mickelson advised that Bill Chiat will continue to serve through October 2012 and the CALAFCO Board is currently drafting and circulating the job announcement.

STAFF ANNOUNCEMENTS
Ms. Mickelson reminded the Commission that the next LAFCO Meeting will be held on Thursday, June 7, 2012, at 9:00 am at the Shasta Lake City Administrative Center. 

She also announced that LAFCO is co-hosting an AB1234 Ethics training session on April 19th at the Lema Ranch. She noted that all of the Special Districts, cities and the County had been invited to participate.

CLOSED SESSION
The Commission convened to closed session at 10:31 am pursuant to Government Code Section 54956.9(b) Regarding Potential Litigation. 

CLOSED SESSION ANNOUNCEMENT
At 10:48 am the Commission reconvened to open session. Counsel Underwood announced that the closed session was conducted under Government Code Section 54956.9 and that there were no reportable actions.

ADJOURNMENT
There being no further business, Chairman Baugh adjourned the meeting at 10:48 am.

Attest:

Marissa Jackson   
Clerk to the Commission