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