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[I. CALL MEETING TO ORDER ]

[00:00:03]

COMMISSION MEETING TO ORDER FOR THURSDAY, APRIL 21ST.

PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

MAY WE HAVE ROLL CALL, PLEASE? YES. COMMISSIONER SERRATTO.

HERE. COMMISSIONER BERTAO.

HERE. CHAIR NAGY.

HERE. OKAY, WE DO HAVE A QUORUM, AND ALL THE COUNTY REPS WERE AWAY AT OUR CONFERENCE THIS WEEK.

SO THERE ARE NO COUNTY MEMBERS ARE PRESENT, BUT WE DO HAVE A QUORUM.

[IV. CONSENT CALENDAR ]

OKAY. NUMBER FOUR, CONSENT CALENDAR APPROVAL OF THE MINUTES OF THE MARCH 17TH, 2022 MEETING.

IS THERE ANY DISCUSSION? MOVE FOR APPROVAL? SECOND, I HAVE A MOTION BY BERTAO, A SECOND BY SERRATTO.

ALL THOSE IN FAVOR BY SAYING AYE.

AYE. OPPOSED. THE MOTION CARRIES.

NUMBER FIVE CITIZEN COMMUNICATION.

THIS IS THE PUBLIC'S OPPORTUNITY TO ADDRESS THE LOCAL AGENCY FORMATION COMMISSION ON ITEMS OF INTEREST OVER WHICH THE LOCAL AGENCY FORMATION COMMISSION HAS JURISDICTION.

SEEING NONE WE WILL MOVE ON.

[VI.A. Adoption of the Proposed Budget for the 2022-23 Fiscal Year. ]

PUBLIC HEARINGS, ADOPTION OF THE PROPOSED BUDGET FOR THE 2022 2023 FISCAL YEAR.

ALL RIGHT. THANK YOU, CHAIR.

THIS BUDGET IS BUILT PRETTY MUCH BASED ON LAST OR THE CURRENT FISCAL YEAR'S BUDGET IN TERMS OF THE VARIOUS ACCOUNTS.

AND AS WE'VE BEEN DISCUSSING, THE MOST SIGNIFICANT CHANGE IS DUE TO MY RETIREMENT AS EXECUTIVE OFFICER AND THE DECISION AND DIRECTION TO CREATE THIS POSITION AS A PERMANENT FULL TIME POSITION VERSUS THE KIND OF CONTRACT EXTRA NOT EXTRA HELP BUT PART TIME POSITION THAT I'VE BEEN PERFORMING FOR MANY YEARS NOW.

AND THAT, OF COURSE, ADDS A WHOLE LOT OF COST TO THE BUDGET.

SO JUST AS AN OVERALL HEADLINE WOULD BE THAT THE PROPOSED BUDGET IDENTIFIES THE TOTAL AMOUNT OF $325,291, WHICH IS DEFINITELY APPROXIMATE BECAUSE IT'S BASED ON AN ASSUMPTION ABOUT WHAT THAT POSITION WOULD BE FOR EXECUTIVE OFFICER AND WHAT THE SALARY WOULD BE AND WHAT THE BENEFIT COSTS ARE.

SO THAT'S KIND OF THE DRIVING FORCE BEHIND THE ENTIRE BUDGET IS WHAT POSITION ENDS UP BEING CREATED.

AND THEN DURING THE RECRUITMENT, THE TYPICAL GOVERNMENT POSITIONS IN MERCED COUNTY ANYWAY WOULD BE FIVE DIFFERENT STEPS. SO IF YOU HIRE SOMEBODY AT STEP ONE, THERE'S ABOUT A 25% SAVINGS OF STEP FIVE, WHICH EVERY STEP IS 5% DIFFERENT.

SO IT MAY TAKE A HIGHER STEP TO ATTRACT A CERTAIN CANDIDATE SO YOU COULD END UP PAYING 25% MORE.

SO THIS DOLLAR AMOUNT IS BASED ON THE MIDDLE STEP, AS IF YOU HIRED SOMEONE ON STEP THREE AND THAT THE ACTUAL COMPENSATION WOULD BE 117,915 IN SALARY.

AND THEN THE BENEFITS, AGAIN, TIED TO AN ASSUMPTION WOULD BE WITHIN THE COUNTY SYSTEM, WHICH WOULD INCLUDE HEALTH INSURANCE, DISABILITY, LIFE INSURANCE, RETIREMENT SYSTEM OR CONTRIBUTIONS.

AND EVEN THERE'S AN EXPENSE ALLOWANCE IN THE COUNTY LIKE $100 A MONTH.

AND SO THAT TOTAL COST WOULD BE 224,807 ON A MIDDLE LAYER.

AND AGAIN, SO WE MAY PICK WORKING WITH THE COUNTY HUMAN RESOURCE, WE MAY END UP PICKING A DIFFERENT POSITION.

WE DON'T HAVE THE FULL COMMITMENT OF THE COUNTY YET TO SAY THAT THEY WOULD SUPPORT THIS POSITION UNDER THE UMBRELLA OF EMPLOYEES, EVEN THOUGH THE EMPLOYEE IS TOTALLY ANSWERABLE TO THE COMMISSION, NOT TO THE COUNTY IN ANY WAY.

BUT AS THE I THINK WE TALKED PREVIOUSLY, THE BENEFIT OF HAVING IT TIED WITH THE COUNTY IS ALL THE OTHER BENEFITS AND RETIREMENT AND INSURANCE THAT IF LAFCO IS HIRING SOMEBODY INDIVIDUALLY AND YOU DON'T HAVE THAT, IF YOU TRY TO CREATE IT IT'S SUPER EXPENSIVE FOR ONE EMPLOYEE OR IF YOU PAID THEM THAT CANDIDATE EXTRA MONEY TO COVER THAT, IT'S A BIG COST.

THERE'S BENEFITS FROM THE GROUP INSURANCE AND GROUP RETIREMENT INVESTMENTS WITH THE COUNTY.

SO THAT WOULD BE A PREFERRED WAY TO DO IT.

AGAIN, WITH THE CREATION OF THE POSITION BEING EXECUTIVE OFFICER, THAT'S ONLY ANSWERABLE TO THIS COMMISSION, NOT TO THE COUNTY.

[00:05:03]

SO THAT'S HOW IT WOULD BE CREATED.

SO THAT'S STILL. SO WHAT YOU'RE SAYING IS, IF WE WENT THROUGH THE COUNTY WITH A PROPOSAL THE WAY IT IS, IT WOULD BE APPROXIMATELY 118,000 A YEAR.

AND IF WE GO ON THE OTHER WAY WITH A COMPLETELY INDEPENDENT PERSON WOULD BE THE TO 225 BASICALLY OR NOT? AM I WRONG? NO. THE 118 APPROXIMATELY WOULD BE WHAT THE PERSON ACTUALLY WOULD GET IN TAKE HOME PAY AND THE ADDITIONAL COST OF THE BENEFITS.

YEAH.

IT'S ALMOST LIKE. IT'S NOT ALMOST.

IT IS. IT'S 100,000 MORE, MAYBE 102,000 TO COVER THOSE BENEFIT COSTS.

SO IF YOU WENT DIRECTLY TO HIRE SOMEONE AND YOU DIDN'T HAVE THOSE BENEFITS.

MM HMM. THE COST OF GETTING HEALTH INSURANCE AND THE COST OF A 401K OR SOMETHING.

YOU KNOW, YOU'D NEGOTIATE THAT, YOU'D SAY WE'LL GIVE YOU SO MUCH PERCENT FOR THAT.

BUT DEFINITELY THE INSURANCE WOULD COST A LOT MORE.

SO YOU'D END UP SAYING, WE'LL GIVE YOU 10% MORE FOR RETIREMENT AND SO MANY PERCENT MORE FOR INSURANCE IF YOU DIDN'T NEGOTIATE IT THAT WAY.

RIGHT. SO IT'S YOU COULD SAY, WELL, WE'LL ONLY OFFER THAT MUCH MONEY ANYWAY AND HIRE THE PERSON INDEPENDENTLY AND THEN JUST SEE HOW YOU DO ON GETTING CANDIDATES SO THAT THAT GOES BACK TO THE TABLE THAT I PASSED OUT A COUPLE OF MONTHS AGO WHICH COMPARED WITH COMPILED BY FRESNO OF ALL THE LAFCO'S IN THE CENTRAL VALLEY HERE AND EVEN A COUPLE OUTSIDE THE CENTRAL VALLEY.

AND BY COMPARING THAT AND THAT'S REFERENCED IN THE EXECUTIVE OFFICERS REPORT IS THIS PAY WOULD BE KIND OF IN THE MIDDLE OF THE RANGE WHERE YOU HAVE LIKE IF WE'RE TALKING ABOUT 119,000 IN STRAIGHT PAY.

NEIGHBORING FRESNO IS AT 133,000.

SO WE'D BE BELOW THAT.

AND THEN LET'S SEE, STANISLAUS NEXT DOOR RANGES FROM 83,000 TO 124,000.

AND THE PERSON COULD BE ANYWHERE IN THAT RANGE RIGHT NOW, BUT WE'D BE IN THE RANGE OF THAT KIND OF IN THAT POSITION.

AND THEN SAN JOAQUIN COUNTY, THEY PAY ALMOST 150,000, SO THEY PAY BETTER.

AND OUT OF THIS LIST IT WAS KERN.

NO KERN COUNTY IS LOWER YEAH AT 129 SO STANISLAUS, EXCUSE ME, LOOKS LIKE SAN JOAQUIN IS THE HIGHEST UNTIL YOU GET UP TO SACRAMENTO, WHICH WAS 155,000.

SO WE WOULD BE COMPETITIVE IN, THE COMPETING JURISDICTIONS IN THIS REGION.

YEAH. AND THAT WOULD BE, AGAIN, THE LAFCO'S THAT ARE FULL TIME AND NOT CONSIDERING THE PART TIME LAFCO'S LIKE MADERA IS ALSO PART TIME AND KINGS COUNTY IS PART TIME. SO YEAH, SO THAT'S THE MAIN COST THAT WE HAVE.

THEN WE HAVE OUR OTHER SUPPORT COSTS WHERE WE USE PLANNER AND CLERK SUPPORT FROM COUNTY STAFF, COUNTY PLANNING, TIFFANY HO OUR PLANNER.

AND IN THIS MEMO I MENTIONED HER NAME AND SHE'S BEEN THE PERSON DEDICATED TO US.

BUT THE COUNTY COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT HAS BEEN THROUGH A LOT OF STAFF TURNOVER AND SHORTAGE.

AND SO IT'S GREAT.

WE'VE BEEN ABLE TO HOLD ON TO TIFFANY WITH SOMEWHAT LIMITED HOURS, BUT SHE'S EXPERIENCED AND DEDICATED AND TALENTED.

SO WE'RE VERY FORTUNATE.

BUT THERE'S NO GUARANTEE THAT WOULD BE THE PERSON GOING FORWARD OR IT COULD BE A CHALLENGE GOING FORWARD.

SO IT WON'T BE THAT HER POSITION IS THE ONE TIED TO THE BUDGET, BUT IT WOULD BE GETTING THE SIMILAR DOLLAR AMOUNT AND SUPPORT FROM THE COUNTY.

AND THE CLERK TYPICALLY IS THE SAME PERSON ASSIGNED TO DO THE PLANNING COMMISSION.

SO THEY'RE USED TO DOING AGENDAS AND PACKETS AND TAKING MINUTES AND ALL THAT.

SO OUR CLERK HERE, DESIREE, IS A NEW MOTHER AGAIN.

AND WITH WHERE SHE LIVES, SHE'S AND COMPLICATIONS SHE'S DECIDED TO GIVE UP HER POSITION WITH THE COUNTY RIGHT NOW MAYBE COME BACK.

BUT FOR NOW SHE'S GOING TO HAVE TO GIVE IT UP.

SO WE RELY ON OTHER STAFF.

WE HAD ANNA BEFORE, BUT DESIREE WAS GETTING TRAINED AFTER MANY YEARS OF KIM ZINKE BEING OUR CLERK.

AND DESIREE WAS DOING A GOOD JOB FILLING IN.

BUT SHE HAS SOME OTHER PRIORITIES RIGHT NOW.

SO THANK YOU DESIREE.

SO AGAIN, WE'LL RELY ON A POSITION WITHIN THE COUNTY VERSUS AN INDIVIDUAL PERSON AND THEN LET ME SEE THE OTHER CATEGORIES.

YEAH, WE GET SUPPORT FROM I.T FOR RUNNING OUR MEETINGS AND YEAH, WE HAVE MONEY ALLOCATED FOR OUR LEGAL NOTICES AND ADVERTISING.

AND THEN YEAH, THE OTHER COST BEING TIED WITH THE COUNTY AND USING THE COUNTY FACILITIES IS A COST ALLOCATION PLAN WHERE ALL DEPARTMENTS

[00:10:08]

PAY SOME AMOUNT INTO THE COUNTY OVERHEAD TO RUN THE COUNTY FOR BACKUP FOR RUNNING THE MAINFRAME COMPUTER OVERALL LEGAL EXPENSES FOR THE COUNTY OPERATIONS.

SO WE PAY A LITTLE BIT OF COUNTY COUNCIL COST AND SOME OTHER ITEMS THAT GET BILLED OUT.

ALL DEPARTMENTS PAY SOME SHARE.

SO LAFCO IS PART OF THAT.

IT'S ONLY IT'S A SMALL DOLLAR AMOUNT.

LET'S SEE IN HERE. IT'S A 7,000.

LET'S SEE HERE. IT'S COST ALLOCATION PLAN YEAH IT'S 7,300 ANTICIPATED AND WE GO BY LAST YEAR AND IT CAN JUMP CERTAIN YEARS FOR A VARIETY OF REASONS AND THEN THE OTHER COST IS ASSUMING WE CAN GO TO CONFERENCES AGAIN, WE'VE BUDGETED FOR BOTH THE REGULAR FALL CONFERENCE WHICH ARE SUPPOSEDLY GOING TO HAVE THIS YEAR, WHICH THEY ANTICIPATE, AND THEN THE STAFF WORKSHOP WHICH WAS CANCELED THIS YEAR ALSO.

SO YEAH.

SO WITH THAT, THE TOTAL BUDGET PROPOSAL IS 325,291 WITH SOME VARIABLES ABOUT HOW THAT EXECUTIVE OFFICER POSITION IS FILLED OUT.

AND THEN OUR REVENUE COMES FROM APPLICATION PROCESSING AND THEN THE COUNTY AND THE CITIES GET BILLED TO MAKE UP THE BALANCE.

AND I THOUGHT FOR YOUR BENEFIT IT WOULD BE I'M GOING TO PASS OUT THE SHEET THAT SHOWS THE CURRENT YEAR THAT WE'RE IN THE DISTRIBUTION. AND THIS IS BASED ON THE ACTUAL COST.

SO ON THE RIGHT COLUMN HERE WE HAVE THE FIRST CATEGORY IS BASED ON THE REVENUE THAT EACH CITY RECEIVES FROM ANY SOURCE DURING THE PRIOR FISCAL OR ACTUALLY THE MOST RECENT FISCAL YEAR THAT WE GET FROM THE STATE COMPTROLLER'S OFFICE.

AND THAT WAS IN THIS THE CURRENT FISCAL YEAR WE'RE IN, IT WAS THE 18-19 REPORT.

SO THERE WAS ALL THE CITIES TOGETHER RECEIVED $304 MILLION DOLLARS IN REVENUES.

AND YOU'LL SEE MERCED WAY AT THE TOP AT 169,480.

SO THEY PAY 55.6% BASED ON THAT.

AND THEN, YEAH, THEN LOS BANOS WOULD BE NEXT AT 59,000.

SO THEY'RE A LITTLE BIT LESS THAN 20%.

AND THEN ATWATER COMES IN THIRD AT ABOUT 14 AND A HALF PERCENT AND THEN LIVINGSTON AT 6 AND GUSTINE AT 2.6.

AND DOS PALOS ONLY AT 1.5%.

THERE IS THAT'S THE PRIMARY WAY THAT YOU ALLOCATE THE COST FOR LAFCO AMONG CITIES.

BUT THE CITIES COULD DECIDE TO DO A DIFFERENT METHOD.

AND THE ONE CITED IN THE LAW IS YOU MIGHT GO BY POPULATION.

AND THAT WOULD BRING MERCED'S COSTS DOWN AND ATWATER'S AND LOS BANOS' UP A BIT.

AND EVERYBODY GOES UP. EVERYBODY ELSE GOES UP A LITTLE BIT, BUT NOT DRASTIC.

AND THEN YOU COULD NEGOTIATE SOME OTHER AS THE MAYOR'S COUNCIL OR CITY SELECTION COMMITTEE THAT'S CALLED COULD DECIDE TO DO SOMETHING ELSE IF THEY WANTED TO.

SO THIS THE REVENUE IS A MAIN BASIS THAT'S BEEN DECIDED TO BE EQUITABLE FOR MOST JURISDICTIONS.

AND DEFINITELY IT'S ALWAYS BEEN THAT WAY IN MERCED COUNTY.

SO THAT JUST LETS YOU KNOW THE RIGHT COLUMN IS REQUIRED CONTRIBUTION.

AND SO YOU'LL SEE THAT EVEN THOUGH WE HAVE A BIG BUDGET PROPOSED, WE ACTUALLY ONLY BILL WHAT IT COSTS IS AFTER THE END OF THE FISCAL YEAR.

SO DEPENDING ON HOW MUCH MONEY WE ACTUALLY SPEND, THAT'S WHAT WE BILL OUT.

SO THE 44,000 OR 44,700 IS THE HALF THAT GOES TO THE CITIES.

THE OTHER HALF IS PAID FOR BY THE COUNTY.

SO WE'RE REALLY TALKING ABOUT LIKE $89,000 WAS SPENT AND OUR NORMAL BUDGET WOULD BE LIKE 159 OR SO. SO WE DIDN'T SPEND AS MUCH AS AND WE NEVER DO.

WE NEVER SPEND AS MUCH AS WE BUDGET BECAUSE WE DON'T.

NOT EVERYBODY GOES TO THE CONFERENCE OR DEFINITELY PART TIME EXECUTIVE OFFICER.

I ONLY GET PAID FOR THE HOURS I WORK, SO WE BUDGETED A CERTAIN AMOUNT AND SOME YEARS I GO OVER AND WE DO A BUDGET ADJUSTMENT.

OTHER YEARS I'M WORKING LESS AND THEN OVERHEAD COSTS DON'T ALWAYS REACH THE FULL AMOUNT.

[00:15:06]

SO WE ONLY BILL WHAT IT ACTUALLY WHAT WE ACTUALLY SPEND AND WE WORK WITH THE COUNTY AUDITOR TO GET THAT AMOUNT AND THEN DO THE DISTRIBUTION.

SO. NO I HAVE A QUESTION.

IF WE GO AHEAD WITH THE PROPOSAL IT'S NOT PROPOSED YET EVEN IT'S JUST THE CONCEPT OF USING THE COUNTY EMPLOYEE, THE LAFCO PORTION OF THAT PROPOSED SALARY ONLY GOING TO BE THE TIME HE WORKS FOR LAFCO OR IS THAT GOING TO BE A SET AMOUNT? YEAH, THIS WILL BE A FULL TIME, 40 HOUR A WEEK.

I THINK IT'S 2080 HOURS A YEAR.

SO HE'S GOING TO DEVOTE ALL HIS TIME? YES, IT WILL NOT DEVOTE ANY TIME TO MERCED COUNTY.

RIGHT. THEY WON'T DO ANY WORK FOR THE COUNTY, COUNTY PLANNING OR ANY OTHER DEPARTMENT.

IT'LL ALL BE LAFCO.

AND AS WE'VE TALKED ABOUT, THEY WOULD WHAT YOU DO IF YOU DON'T HAVE APPLICATIONS, WHICH [INAUDIBLE] GOES WELL, MAYBE IN LOS BANOS OR SOMETHING THAT YOU WORK ON YOUR MUNICIPAL SERVICE REVIEWS AND YOUR SPHERE OF INFLUENCE REPORTS EXACTLY. YEAH. AND THAT'S RIGHT. YEAH. THEY'RE WRITING THE JOB DESCRIPTION OUT EXACTLY WHAT THE DUTIES ARE.

SURE. RESPONSIBILITIES. YEP. AND THEN THAT WOULD BE SOMETHING FOR THE COMMISSION YOU'D WANT REPORTS FOR LIKE, HOW ARE WE DOING AND WE'RE MAKING IT.

SO THE TRADITION THAT WE'VE HAD FOR A LONG TIME NOW WAS DOING THE MUNICIPAL SERVICE REVIEWS THAT THE COMMISSION INITIATES AND PAYS FOR, ALWAYS HAVING ONE GOING FOR SOMETHING.

AND THEN IF YOU DO A SPECIAL ONE LIKE A CITY GENERAL PLAN UPDATE OR A SPECIAL DISTRICT WANTS TO ANNEX A BUNCH OF LAND AND THEY NEED TO DO THEIR OWN SPECIAL ONE, THEN THEY WOULD PAY FOR THAT. BUT IN THIS GUISE YOU'D BE DOING MULTIPLE.

SO THE COMMISSION COULD CONCEIVABLY MAYBE AT BUDGET TIME EACH YEAR WHAT I COULD ASK THE EXECUTIVE OFFICER TO GIVE US AN IDEA OF HOW THEY PLAN TO UTILIZE THEIR TIME DURING THE FISCAL YEAR.

YES. CORRECT. YEAH. AND YOU WOULD.

THAT WOULD BE A JUSTIFIABLE QUESTION TO ASK THEM, RIGHT? EXACTLY. YEAH. AND PRIORITIZE.

OKAY. YOU NEED TO DO MUNICIPAL SERVICE REVIEWS AND UPDATES.

WE'VE JUST BEEN THROUGH THE URBAN SEWER AND WATER DISTRICTS.

WE'RE FINISHING UP WHERE OUR GOAL IS TO FINISH UP BY JUNE AND BRING IT TO OUR JUNE MEETING.

THE AG IRRIGATION DISTRICT MUNICIPAL SERVICE REVIEWS.

SURE. SO THEN WE HAVE OTHER CATEGORIES LIKE CEMETERY DISTRICTS, RESOURCE CONSERVATION DISTRICTS.

WE HAVE ANOTHER CATEGORY THAT HAS HOSPITAL DISTRICTS AND A LEVEE DISTRICT AND JUST A FEW DRAINAGE DISTRICTS.

SO THEY'RE KIND OF UNIQUE CATEGORIES.

MOST OF THEM ARE BIG GROUPS WHERE WE HAVE A LOT LIKE 15 AG IRRIGATION DISTRICTS.

AND THEN YOU GET THE CITIES AND USUALLY YOU DON'T UPDATE THEM UNTIL THEY'RE DOING A GENERAL PLAN UPDATE.

ALTHOUGH IF THEY HAVEN'T BEEN UPDATED FOR YEARS LIKE DOS PALOS HAVEN'T DONE A GENERAL PLAN SINCE 1980.

LAFCO IN FACT, THE COMMISSION DID THAT.

THE COMMISSION PAID FOR THREE CITIES THAT HAVEN'T BEEN DOING A LOT OF ACTIVITY, AND SO THE COMMISSION PAID TO DO THEIR MSR UPDATES, OTHERWISE TO THE CITIES OF MERCED AND LOS BANOS AND GUSTINE.

GUSTINE NEEDED TO DO ONE FOR THAT SOUTH EAST ANNEXATION.

SO THEY PAID TO DO THEIRS SO THAT YOU'D HAVE THE EXECUTIVE OFFICER RECOMMEND.

HEY I THINK THIS IS THE [INAUDIBLE] WE SHOULD WORK ON THE TYPES OF DISTRICTS AND YOU COULD AGREE THAT SHOULD GIVE YOU A HISTORY LIKE WHEN HOW OLD ARE THEY? THAT'S TYPICALLY WHAT YOU DO BECAUSE UNDER THE LAW WE SHOULD BE LOOKING AT SPHERES EVERY FIVE YEARS OR AS NECESSARY.

AND YEAH, WE'RE NOT THERE. NO, NO.

LAFCO I LOOK AT IT, THEY'RE NOT, THERE'S NOT MANY THAT ARE ON TOP OF IT.

EVEN WITH FULL TIME STAFF, WITH FOUR EMPLOYEES, THEY DON'T KEEP UP.

NOW A DIFFERENT QUESTION.

MERCED'S THE BIGGEST CONTRIBUTOR ON THE CITY SIDE.

COUNTY IS THE ONLY CONTRIBUTOR ON THE COUNTY SIDE.

BUT WOULD MATT, WOULD YOU THINK, SINCE YOU ARE COUNCIL MEMBERS, YOU'RE NOT GOING TO REALLY DEBATE THE COST OF 200% INCREASE IN THE IN THE BUDGET? BUT WOULD THERE BE OPPOSITION, YOU THINK, FROM CITY OF MERCED FOR THIS KIND OF INCREASE OR? IT'S HARD TO SAY. I MEAN, I CAN'T REALLY SPEAK FOR THE COUNCIL.

I THINK A LOT OF THAT'S FOR THE MOST PART.

GO AHEAD. OH, DID YOU TURN YOUR MIC ON.

YOUR MIC? YEAH.

NO, IT'S HARD. I DON'T HAVE DIRECTIONS.

IT'S HARD TO SPEAK FOR THE COUNCIL AT THIS POINT, BUT I THINK WE'RE MOVING INTO BUDGET.

WE'RE GOING TO HAVE OUR FIRST BUDGET HEARING MAY 16TH, I BELIEVE, AND WE'LL FINALIZE BUDGET AT THE END OF JUNE.

BUT TYPICALLY, THIS IS SOMETHING THAT'S WORKED OUT THROUGH THE BUDGET PROCESS BY STAFF AS THEY PREPARE IT.

[00:20:05]

AND THIS IS NOT SOMETHING THAT COUNCIL TYPICALLY THIS IS NOT SOMETHING.

CONTROVERSIAL THAT COUNCIL WOULD ARGUE ABOUT.

THIS IS TYPICALLY NOT SOMETHING THAT COUNCIL'S GOING TO SEE OR BE TOO CONCERNED ABOUT.

SO THIS IS A LOT OF THE STUFF THAT GOES INTO THE BUDGET, THAT'S BAKED INTO THE BUDGET.

SURE. YOU KNOW IT'S NOT SOMETHING THAT WE REALLY TYPICALLY ADDRESSED.

WE'RE NOT GOING TO. OKAY.

ALL RIGHT.

BUT I MAY FOLLOW UP ON THAT, THAT UNDER THE LAW FOR LAFCO, LAFCO HAD A LOT OF AUTHORITY.

AND BECAUSE WE'RE LOCAL REPRESENTATION OF THE STATE'S INTEREST IN MERCED COUNTY AND IN LAFCO IN EVERY COUNTY, THE CITIES AND THE COUNTY DON'T GET A CHOICE. IF THE COMMISSION APPROVES THE BUDGET, IT GETS SENT, THE BILLS GET SENT TO THE CITIES AND THE COUNTY.

AND IF WE HAD SPECIAL DISTRICTS ON HERE, THEY WOULD ALSO GET BILLING.

AND IF THEY DON'T PAY, THE AUDITOR IS AUTHORIZED TO TAKE THAT MONEY.

THE MONEY COMES BACK TO THE CITIES AND THE COUNTY FROM THE STATE SALES TAX AND ALL THAT, AND THE COUNTY AUDITOR DISTRIBUTES IT.

AND UNDER THE LAW, THE AUDITOR COULD JUST SAY, OKAY, YOU KNOW, WE'VE GIVEN YOU THREE TRIES OR YOU'RE NOT PAYING, WE'LL JUST TAKE THE MONEY.

SO THE COUNCIL COULDN'T EVEN SAY, WELL, WE'RE NOT PAYING.

THE MONEY WILL DISAPPEAR FROM THE REVENUE ANYWAY.

AND IT'S BECAUSE OF THE IMPORTANCE A COUPLE OF QUESTIONS THAT I HAD.

BILL, DO YOU KNOW HOW MANY COUNTIES HAVE THEIR LAFCO EXECUTIVE OFFICER UNDER THEIR UMBRELLA? I MEAN, IS THAT PRETTY STANDARD THROUGH THE STATE OR? IT'S MUCH MORE STANDARD IN THE MORE RURAL JURISDICTIONS WHERE THEY JUST DON'T HAVE A LOT OF CAPACITY.

SO I DON'T KNOW A NUMBER, BUT IT WOULD BE EASILY HALF EASILY HALF LAFCO'S WOULD BE HOUSED WITH WITH THE COUNTY AND COUNTY STAFF.

AND SOMETIMES IT WOULD BE A CONTRACT POSITION, BUT THEY WOULD BE WORKING EITHER UNDER THE COUNTY, THROUGH THE COUNTY PLANNING FOR RESOURCES OR EVEN COUNTY ADMIN, BECAUSE THAT'S WHERE THEY HAVE THEIR COMPUTER SYSTEM AND THE GIS SOFTWARE AND ALL THAT.

SO IT WOULD BE HARD TO PICK A CITY TO DO THAT.

AND MAYBE A COUNTY ONLY HAS ONE CITY AND YOU TRY TO FIND SOMEBODY, BUT TYPICALLY THEY'RE UNDER THE COUNTY, I THINK, BECAUSE OF THE RESOURCES AND THE DATA THAT YOU NEED.

OK. THEN THE OTHER QUESTION I HAVE IS ON THE CONTRIBUTIONS.

IT LOOKS LIKE THEY'RE LIKE A YEAR BEHIND.

SO WHAT IS THAT, AM I READING THAT RIGHT? THAT WHAT THEY PUT OUT IS THEIR REPORT LIKE THIS ONE IS THE 18-19 REVENUE AND THEN YOU GOT YOUR SHARES.

SO WHAT I'M GETTING AT IS IN THIS FIRST INITIAL YEAR WHERE OUR BUDGET GOES WAY UP, ARE WE GOING HOW IF WE'RE ONLY GOING TO IF THE CITIES ARE ONLY STILL GOING TO BE PAYING WHAT THEY'VE BASICALLY WHAT THEY'VE BEEN PAYING, BUDGETING, WHAT THEY'VE BEEN PAYING, THEN ARE THEY GOING TO BE BILLED DOUBLE? WILL IT BE A SURPRISE TO THEM OR SHOULD WE BE GOING TO OUR CITIES AND SAYING, LOOK, THIS IS WHAT'S HAPPENING DURING YOUR BUDGET TALKS, YOU NEED TO PLAN FOR A 200% INCREASE OR HOW SHOULD WE HANDLE THAT AT THE? YEAH. [INAUDIBLE] YEAH.

THE LAW IS THAT WE AS LAFCO WE PREPARE OUR DRAFT OR PROPOSED BUDGET, WHICH WE HAVE NOW AND OUR FINAL BUDGET.

AND THEY, BOTH GET SENT OUT TO THE COUNTY ADMIN AND THE CITIES WITH THE COVER LETTER.

AND HERE'S OUR BUDGET AND HERE'S, THE EXPLANATION.

THE COSTS CAN GO WAY UP BE PREPARED.

AND WE ACTUALLY HAVE TO SEND IT TO ALL THE SPECIAL DISTRICTS, EVEN THOUGH WE DON'T HAVE THEM ON LAFCO WE'VE GOT TO SEND OUT TO OUR 40 ODD SPECIAL DISTRICTS.

COULD CARE LESS BECAUSE THEY DON'T PAY ANYTHING.

SO THEY'LL GET THE DRAFT AND THEY'LL GET THE FINAL BUDGET.

SO THEY'RE FOREWARNED THERE.

SO LAFCO'S NOT GOING TO BE SHORT? NO, THEY WON'T BE SHORT.

FIRST YEAR. RIGHT. THEY'RE NOT GOING TO BASE IT OFF THEIR BASING IT OFF OF OUR ACTUAL.

BECAUSE IT'S IN THE SAME FISCAL YEAR.

BUT WE WORK WITH THE AUDITOR STARTING IN ABOUT APRIL AND DETERMINE ALL OUR COSTS AND SAY, OKAY, WE ANTICIPATE THE NEXT TWO MONTHS TO SPEND WHATEVER NUMBER AND THEN COME UP WITH WHAT THE TOTAL COST IS AND THEN THE AUDITOR APPORTIONS IT.

AND THEN AGAIN WHEN YOU DO THE REVENUE METHOD, THE STATE DOESN'T HAVE CURRENT REVENUES AT THE CLICK OF A BUTTON.

RIGHT. THEY HAVE A FULL REPORT WHERE THEY KNOW EXACTLY WHAT IT WAS AND LAFCO'S ARE TO USE THAT AND IT'S ALWAYS GOING TO BE A COUPLE OF YEARS BEHIND.

SO THAT'S WHEN YOU USE.

SO IT'S NOT REFLECTIVE OF WHAT YOU GOT THIS YEAR.

IT'S WHAT YOU GOT A COUPLE OF YEARS AGO.

SO I KNOW WE HAD A YEAR WHEN ACTUALLY GUSTINE GOT A BIG GRANT FOR A SEWER PLANT IMPROVEMENT AND IT COULD HAVE BEEN THREE OR 4 MILLION AND THAT WAS A JUMP IN THEIR BUDGET.

[00:25:01]

AND SO FOR REVENUE, SO FOR LAFCO, WHEN THEY HAD THE CITY SELECTION COMMITTEE MEETING, THE MAYOR'S COUNCIL MEETING, GUSTINE MADE A PROPOSAL, WHY DON'T WE SWITCH FROM REVENUE TO POPULATION? BECAUSE WE HAVE A BIG JUMP THIS YEAR AND OUR COST FOR LAFCO ARE GOING TO GO UP.

AND THEN THE OTHER CITIES SAID, WELL, WE HAVE THAT SAME EXPERIENCE PERIODICALLY WE GET GRANTS FOR SEWER PLANT OR WATER SYSTEM OR WHATEVER.

AND SO RATHER THAN FOLLOW, LET'S USE ONE METHOD ONE YEAR AND ANOTHER METHOD ANOTHER, IT'LL AVERAGE OUT OVER TIME.

SO THEY DECIDED TO KEEP WITH THIS FORMULA.

BUT SO THAT DOES HAPPEN WHERE YOU GET DIFFERENT JUMPS.

BUT THE REVENUE AT THAT POINT IT WOULD HAVE BEEN BASED ON THREE YEARS AGO.

SO BY THE YEAR THAT THEY'RE DISCUSSING IT, IT WOULDN'T EVEN HAVE SHOWN UP YET.

IT'LL BE TWO YEARS DOWN THE ROAD BEFORE THAT EVEN SHOWS UP BECAUSE YOU'RE GOING BACK HISTORIC REVENUES.

YEAH. SO THE CITIES WILL BE ALERTED TO THIS, AS WILL THE COUNTY ADMINISTRATOR, AND THAT'S WHERE THEY START PUTTING THIS IN THEIR BUDGET.

AND YEAH WHERE THE COMPLAINTS WOULD COME IN IS IF YOU AS MAYORS GET NOTIFIED THAT PEOPLE ARE OBJECTING TO LAFCO, THEN YOU HAVE YOUR MAYORS COUNCIL.

AND THAT WOULD BE AS A GROUP, YOU SAY, HEY, WE, YOU KNOW, WHAT DO WE WANT TO DO ABOUT IT? I NEVER GET LETTERS FROM THE CITIES IN RESPONSE TO THAT, QUESTIONING THE BUDGET OR RAISING ANY CONCERN.

I THINK THAT'S JUST PART OF THE OVERHEAD INFRASTRUCTURE OF.

LIKE A FIXED COST. YES.

THE FIX. YEAH. HERE'S ANOTHER HERE'S THE BILL FROM LAFCO.

MAYBE MCAG YOU GET YOU GET A BILL FOR YOUR SHARE OF MCAG AND IT'S OKAY GUESS WHAT IT IS.

YEAH. SO OKAY, GREAT.

SO YEAH. SO WHAT WE'D BE ASKING FOR TODAY IS A VOTE FOR TO APPROVE THIS PROPOSED BUDGET, YOU KNOW, UNDERSTANDING WE'RE STILL WORKING THROUGH THE THIS EXECUTIVE OFFICER POSITION AND THEN AGAIN TO THE EXECUTIVE OFFICER SENT THIS OUT TO ALL THE CITIES IN THE COUNTY AND THE SPECIAL DISTRICTS, AND THEN WE'LL COME BACK NEXT MONTH WITH OUR FINAL BUDGET.

AND HOPEFULLY BY THEN WE'LL HAVE A MORE CONCRETE NUMBER WITH THE COUNTY.

AND I WILL SAY, I THINK I SAID THIS LAST MONTH, TOO, THAT IN MY ROLE, I'M NOT GOING TO JUST LEAVE THE COMMISSION.

THEN YOU DON'T HAVE ANYBODY.

I WON'T LEAVE UNTIL IT'S WORKED OUT WHAT THE POSITION IS THAT IT'S BEEN BUDGETED AND THE RECRUITMENT PROCESS GOES FORWARD.

SO. ARE YOU GOING TO HELP TRAIN THE NEW PERSON I COULD DO SOME OVERLAP TO LET THEM KNOW BECAUSE THAT'S THE THING.

IF THAT'S EXACTLY.

TO SHOW THEM WHAT THE LAY OF THE LAND IS FOR MERCED TO THE COUNTY YEAH.

OK. AND AGAIN TIFFANY KNOWS A FAIR AMOUNT OF THINGS BUT SHE HASN'T DONE EVERYTHING.

AND SO I'D BE WILLING TO DO THAT.

DO THAT, TOO. YES.

OKAY. OKAY.

DO I HAVE A MOTION TO APPROVE THE PROPOSED BUDGET? SO MOVED.

SECOND. WE HAVE A MOTION BY COMMISSIONER SERRATTO, A SECOND BY COMMISSIONER BERTAO.

ALL IN FAVOR BY SAYING AYE.

AYE. OPPOSED? MOTION CARRIED UNANIMOUS.

[VIII. EXECUTIVE OFFICER AND COMMISSIONERS' COMMENTS]

NUMBER EIGHT EXECUTIVE OFFICER COMMENTS.

EXECUTIVE OFFICER ORAL UPDATE ON AN UPCOMING APPLICATIONS AND OTHER BUSINESS.

GOT A CORRESPONDENCE AND YOU SAW THIS, BUT WE.

OH WE JUST APPROVED LAST WEEK WITH UNDER A PROCEDURE FOR SERVICES BY A DISTRICT OR CITY OUTSIDE THEIR BOUNDARY.

NORMALLY, IT HAS TO COME TO THE COMMISSION, BUT IF THERE'S AN EMERGENCY AND WE HAVE IT DOCUMENTED BY COUNTY ENVIRONMENTAL HEALTH, WE CAN APPROVE IT THROUGH COORDINATION BETWEEN THE EXECUTIVE OFFICER AND THE LAFCO CHAIR.

SO LAST WEEK WE APPROVED A SEWER CONNECTION IN THE COMMUNITY OF FRANKLIN BEACHWOOD FROM THE FRANKLIN COUNTY WATER DISTRICT ON A SMALL LOT THAT THEIR SEPTIC FAILED.

AND THIS IS A SEPARATE SECOND ONE IN THE SAME NEIGHBORHOOD IN THE LAST YEAR.

AND SO I INCLUDED THE MAP HERE FOR YOUR REFERENCE OF WHERE THE PROPERTY IS LOCATED.

AND THIS MAP CAME FROM OUR LAST AGENDA WHERE WE WERE ANNEXING THE JOE STEFANI SCHOOL INTO THE FRANKLIN COUNTY WATER DISTRICT AND THEY WERE ALREADY HOOKED UP TO SEWER ALSO UNDER AN EMERGENCY SITUATION.

BUT YOU CAN SEE THEY HAVE A VERY UNUSUAL DISTRICT WITH THE GREEN BEING THEIR DISTRICT BOUNDARY.

AND ON THE WEST SIDE OVER BY FRANKLIN ROAD, THERE'S A COUPLE OF AREAS OF SUBDIVISIONS THAT ARE WITHIN THEIR DISTRICT AND THEN OTHER SMALL LOT SUBDIVISIONS THAT ARE NOT IN THEIR DISTRICT AND THEY'RE IN THEIR SPHERE OF INFLUENCE, BUT THEY'RE NOT IN THE DISTRICT.

AND IT GOES BACK TO JUST OLD STANDARDS FOR SEPTIC THAT IF THEY HAD PUBLIC WATER BECAUSE HERE THERE'S A PRIVATE WATER COMPANY THAT YOU COULD HAVE A SMALL SEPTIC SYSTEM ON A SMALL LOT BECAUSE YOU WOULDN'T BE WORRIED ABOUT CONTAMINATING YOUR WATER IRREGARDLESS THAT THERE'S NOT ROOM FOR BACKUP LEACH LINE OR ANYTHING ELSE. SO OVER TIME, THIS IS SOMETHING THAT REALLY SHOULD LAFCO WOULD WORK ON IS GETTING ALL THIS AREA ANNEXED TO THE DISTRICT AND THE PEOPLE COULD PROBABLY

[00:30:01]

PROTEST. BUT WE'RE JUST GOING TO HAVE MORE AND MORE OF THESE INDIVIDUAL SEPTIC TANK FAILURES AND THEY'RE GOING TO BE AN EMERGENCY.

YOU CAN'T TAKE A SHOWER.

YOU CAN'T FLUSH YOUR TOILETS.

IT'S A REAL NIGHTMARE.

AND IT STILL TAKES A FEW WEEKS TO GET THROUGH THE WHOLE PROCESS.

SO AND JUST REFERENCING TIFFANY HO AGAIN SHE'S WORKING ON THE COUNTY'S COMMUNITY PLAN FOR FRANKLIN BEACHWOOD, AND THAT WOULD BE AN UPDATE OF WHERE THEIR GROWTH IS OR CHANGES IN LAND USE, RECREATION AND FACILITIES, ROADS, TRAILS, BIKE PATHS AND ALL THAT, SO THE COUNTY WOULD BE PROCESSING THAT.

AND ONCE THEY'RE DONE WITH THAT, WE WOULD USUALLY GET A REQUEST TO UPDATE THE MUNICIPAL SERVICE FOR YOU AND AMEND THE SPHERE OF INFLUENCE AND THAT COULD BE A TIME TO TACKLE THIS WHEN THEY HAVE ALL OF THE UPDATED DATA AND KNOW WHAT THE LONG TERM SEWER CAPACITY IS AND THINGS LIKE THAT.

SO I JUST WANTED TO SHARE THAT WITH YOU AS SOMETHING THAT GOES ON IN THE BACKGROUND PERIODICALLY.

THANK YOU. YEAH.

OTHERWISE, AS I MENTIONED PREVIOUSLY, WE ARE GETTING THE AG IRRIGATION DISTRICT MUNICIPAL SERVICES REVIEW.

WE'VE COMPLETED ALL THE CHAPTERS FOR EACH DISTRICT AND WE'RE SENDING THOSE OUT EARLY NEXT WEEK FOR EACH DISTRICT TO GIVE A FIRST REVIEW OF.

AND THEN WE'LL SEND IT OUT FOR PUBLIC REVIEW LEADING TO OUR PUBLIC HEARING.

AND WE'RE SETTING THAT.

THAT WILL BE SET FOR JUNE.

SO IF THERE'S ANY OTHER INTERESTED AGENCY THAT WANTS TO COMMENT OR LANDOWNERS OR WHOEVER, THEY'LL GET A CHANCE.

BUT WE'LL GET THAT WE'LL GET THAT WRAPPED UP THIS FISCAL YEAR AND THAT'LL COMPLETE OUR CONTRACT WITH EPS, ECONOMIC PLANNING SYSTEMS THAT WE HAVE.

AND OTHERWISE, I DON'T THINK WE HAVE A PENDING APPLICATION IN THE WORKS.

THERE'S A FEW THINGS BEING WORKED ON BY CITIES, BUT NOTHING IMMEDIATE THAT I CAN THINK OF RIGHT NOW.

SO WE'LL JUST WE ALWAYS PLAY IT BY EAR.

THEY'LL COME IN AND WE'LL JUST BE MOVING FORWARD.

THERE YOU GO. OKAY.

ALL RIGHT.

COMMISSIONER COMMENTS. COMMISSIONER SERRATTO.

NO COMMENTS FROM ME. THANK YOU. THANK YOU.

COMMISSIONER BERTAO.

THANK YOU FOR YOUR TIME SERVED ON LAFCO.

AND WE'RE GOING TO MISS YOU.

AND YOU'VE BEEN A GOOD BOARD MEMBER AND GOOD FOR YOU.

YOU KNOW, GOOD LUCK WITH ALL YOUR OTHER CITY ENDEAVORS.

YOU'RE STILL GOING TO BE ON AS A MAYOR AND STUFF? YEAH, YEAH. OKAY.

YEP, YEP. THAT'S GOOD. GOOD.

THE ONLY OTHER COMMENT I HAVE WITH BACK ON OUR BUDGET, I'M SURPRISED THAT ANY THAT A STATE LEGISLATOR HAS NOT EVER CARRIED ANY LEGISLATION TO REQUIRE SPECIAL DISTRICTS TO BE PART OF LAFCO.

THAT'S YOU KNOW ALL THIS OTHER STUFF THEY COME UP WITH NOWADAYS.

I WOULD THINK THAT SPECIAL DISTRICTS MUST HAVE A LOT OF INFLUENCE SOMEWHERE TO NOT TO BE REQUIRED TO BE PAYING MEMBERS TO LAFCO.

THAT'S IT. [LAUGHTER] YEAH. THEY DO HAVE A LOT OF IT.

SOUNDS LIKE AN IDEA TO FLOAT TO AN ASSEMBLY MEMBER OR SOMETHING.

SOMETHING UH. THEY USE LAFCO ALL THE TIME.

EXACTLY. THEY DO.

YOU KNOW.

WELL THE BIGGER COUNTIES. SOME OF THE BIGGER COUNTIES DO HAVE THEIR GUYS.

YES. YOU KNOW, LIKE WHEN WE GO TO THE CONFERENCE, YOU KNOW, THERE'S ALL A LOT OF SPECIAL DISTRICT MEMBERS THAT ARE OFFICERS OF LAFCO.

YEAH. RIGHT. EXACTLY.

YOU KNOW.

YEAH, MONTEREY HAS THAT.

THIS IS MY LAST MEETING.

[LAUGHTER] MR. BERTAO, THANK YOU SO MUCH FOR THOSE NICE COMMENTS.

YOU'RE WELCOME. I WANT TO THANK YOU, BILL, AND EVERYBODY THAT EVEN THE FOLKS THAT AREN'T HERE.

I HAVE LEARNED SO MUCH FROM EACH AND EVERY ONE OF YOU GUYS THAT IT'S BEEN A VERY WORTHWHILE ENDEAVOR TO BE ON THIS.

IT JUST HAS BEEN.

SO IT'S BEEN FUN.

IT'S BEEN ENLIGHTENING.

AND I'M GOING TO MISS IT.

YEAH. YOU KNOW, SO I THANK YOU, GUYS.

KEEP UP THE GOOD WORK. MR. BERTAO, YOU'VE BEEN ON HERE.

I'VE BEEN ON HERE TOO LONG. FOR A LONG TIME.

SO I SALUTE YOU, SIR, AND YOUR SERVICE, BECAUSE, YOU KNOW, YOU'RE A CONSTANT ON THIS BOARD AND YOU HAVE JUST A TON OF KNOWLEDGE OF HISTORICAL KNOWLEDGE AND LAFCO KNOWLEDGE.

IT TOOK A LITTLE WHILE TO GET, YOU KNOW OH, YEAH, OH YEAH. BY THE TIME LIKE, YOU KNOW, THE CITY AND COUNTY BY THE TIME THEY'RE REALLY IN, I WOULD SAY IN HIGH GEAR TIME FOR THEM TO LEAVE.

IT'S TIME TO GO.

EXACTLY. THAT'S KIND OF THE WAY I FEEL, TOO.

SO ANYWAY, I WILL MISS YOU GUYS.

DESIREE, GOOD LUCK IN YOUR FUTURE ENDEAVORS.

I WISH YOU THE BEST.

TIFFANY, YOU'RE NOT GOING ANYWHERE.

AND THANK YOU FOR ALL THAT YOU DO FOR LAFCO.

IT IS APPRECIATED.

SO WITH ALL OF THAT SAID, I WILL CALL THIS MEETING ADJOURNED ONE LAST TIME.

THEN WE'LL HAVE A.

* This transcript was compiled from uncorrected Closed Captioning.