YOLO COUNTY LOCAL AGENCY FORMATION COMMISSION...

YOLO COUNTY LOCAL AGENCY FORMATION COMMISSION

Special MeetingAGENDA

April 16, 2012 - 9:00 a.m.

BOARD OF SUPERVISORS CHAMBERS 625 COURT STREET, ROOM 206 WOODLAND, CALIFORNIA 95695

COMMISSIONERS OLIN WOODS, CHAIR (PUBLIC MEMBER)

MATT REXROAD, VICE CHAIR (COUNTY MEMBER)STEPHEN SOUZA (CITY MEMBER)

SKIP DAVIES (CITY MEMBER)DON SAYLOR (COUNTY MEMBER)ALTERNATE COMMISSIONERS

ROBERT RAMMING (PUBLIC MEMBER)JIM PROVENZA (COUNTY MEMBER)

BILL KRISTOFF (CITY MEMBER)

CHRISTINE CRAWFORDEXECUTIVE OFFICER

ROBYN TRUITT DRIVONCOMMISSION COUNSEL

All persons are invited to testify and submit written comments to the Commission. If you challenge aLAFCo action in court, you may be limited to issues raised at the public hearing or submitted as writtencomments prior to the close of the public hearing. All written materials received by staff 72 hours beforethe hearing will be distributed to the Commission. If you wish to submit written material at the hearing,please supply 10 copies.

Sate law requires that a participant in a LAFCo proceeding who has a financial interest in the decision andwho has made a campaign contribution of more than $250 to any commissioner in th past year mustdisclose the contribution. If you are affected, please notify Commission staff before the hearing.

CALL TO ORDER

1. Pledge of Allegiance.

2. Roll Call

3. Public Comment : Opportunity for members of the public to address the Yolo County LocalAgency Formation Commission (LAFCo) on subjects not otherwise on the agenda relatingto LAFCo business. The Commission reserves the right to impose a reasonable limit ontime afforded to any topic or to any individual speaker.

CONSENT AGENDA

4. Approve LAFCo Meeting Minutes of March 26, 2012

5. Receive Executive Officer Transition Plan, reporting from March 15 to June 30, 2012

6. Ratify Resolution 2012-02 commending City Member Stephen Souza for his tenure withthe Yolo County Local Agency Formation Commission

REGULAR AGENDA

7. Amend the fiscal year 2011-12 Budget to increase the professional and special servicesaccount by $7,500 and authorize the Chair to execute an agreement with the AnimalProtection League to provide professional services to identify potential enhancements toexisting animal control operations and a financial evaluation of alternative organizationalmodels for the Shared Services Initiative

8. Amend the Fiscal Year 2011-12 Budget to increase the Professional and Special ServicesAccount by $10,000 and authorize the Chair to execute an agreement with the City ofWest Sacramento to provide project management professional services not to exceed$70,000 to support the Shared Services Initiative

9. Consider approval of the draft Audit prepared by Richardson & Company of the YoloLAFCo’s financial statements for fiscal years ending 2009, 2010, and 2011

10. Consider and approve reappointment of Alternate Public Member Robert Ramming toanother four-year term through May 2016

11. Adopt the new Yolo LAFCo Administrative Policies and Procedures comprised as follows:1) incorporates the previously adopted policies contained in the “Rules of LAFCo”; 2)incorporates the policy and procedure for the appointment and selection of the PublicMembers adopted March 28, 2011; 3) adopts Yolo County Administrative Policies andProcedures as applicable; 4) changes the Regular Commission Meeting Day from the 4thMonday to the 4th Thursday of the month effective July 2012; and 5) adopts new budgetand financial operations Policies and Procedures

EXECUTIVE OFFICER'S REPORT

12. A report by the Executive Officer on recent events relevant to the Commision and anupdate of Yolo LAFCo staff activity for the month. The Commission or any individualCommissioner may request that action be taken on any item listed.

a. City Selection Committe Results

b. Shared Services Initiative

COMMISSIONER COMMENTS

13. Opportunity for any Commissioner to comment on issues not listed on the agenda. Noaction will be taken on off-agenda items unless authorized by law.

a. Recognition and presentation of Resolution 2012-02 honoring City Member StephenSouza for his tenure with the Yolo Local Agency Formation Commission (Chair Woods)

ADJOURNMENT

14. Adjourn to reception outside Board Chambers for City Member Stephen Souza

Next meeting scheduled for: May 14, 2012

I declare under penalty of perjury that the foregoing agenda was posted April 11, 2012 by 5:00 p.m.at the following places:

On the bulletin board at the east entrance of the Erwin W. Meier Administration Building, 625Court Street, Woodland, California; and

On the bulletin board outside the Board of Supervisors Chambers, Room 206 in the Erwin W.Meier Administration Building, 625 Court Street, Woodland, California.

On the LAFCo website at: www.yololafco.org.

Terri Tuck, ClerkYolo County LAFCo

NOTICEIf requested, this agenda can be made available in appropriate alternative formats to persons witha disability, as required by Section 202 of the Americans with Disabilities Act of 1990 and theFederal Rules and Regulations adopted in implementation thereof. Persons seeking an alternativeformat should contact the Commission Clerk for further information. In addition, a person with adisability who requires a modification or accommodation, including auxiliary aids or services, inorder to participate in a public meeting should telephone or otherwise contact the CommissionClerk as soon as possible and at least 24 hours prior to the meeting. The Commission Clerk maybe reached at (530) 666-8048 or at the following address:

Yolo County LAFCo625 Court Street, Room 203

Woodland, CA 95695

Note: Audio for LAFCo meetings will be available directly following conclusion of the meeting atwww.yololafco.org.

http://www.yolocounty.org

http://www.yololafco.org

Consent 4. LAFCOMeeting Date: 04/16/2012

InformationSUBJECTApprove LAFCo Meeting Minutes of March 26, 2012

AttachmentsItem 4-Meeting Minutes 03-26-12

Form ReviewForm Started By: Terri Tuck Started On: 04/10/2012 11:39 AMFinal Approval Date: 04/10/2012


InformationSUBJECTReceive Executive Officer Transition Plan, reporting from March 15 to June 30, 2012

AttachmentsItem 5-EO Transition memoItem 5 ATT-EO Summary


LAFCo Executive Officer Transition PlanStatus as of March 15, 2012

Date Event Completed?03/15/12 CSAC Institute Class – Creative Budget Solutions and

Innovative Service Design√

03/15/12 Present at SACOG Shared Services Ad Hoc Committee √03/16/12 Attend “YM2” Yolo Managers Monthly Meeting √03/19/12 UC Davis Non Profit-Community Change Presentation (Don

Saylor)√

03/19/12 Shared Services – Library Strategic Planning Meeting √03/20/12 LAFCo – Meeting w/Counsel re KLCSD CEQA √03/20/12 Shared Services – Animal Services Update Meeting

w/YCPAWS√

03/21/12 Field Trip to Marin County – JPA (GSA, OES, Animal Services)

√

03/22/12 LAFCo – Meeting w/ Mike Olivas re proposed development near Winters √

03/23/12 LAFCo/Shared Services – Meeting w/ Commissioner Davies √03/23/12 Shared Services – Meeting w/ John Meyer – UCD √03/27/12 LAFCo – Meeting w/Dan Harris (WSac) re LAFCo logo √03/28/12 LAFCo – Meeting w/Christy Barton (YCFCWCD proposal) √03/28/12 Attend SACOG Regional Partnership √03/30/12 Yolo County Strategic Planning Session √04/05/12 LAFCo – Meeting w/Chair re LAFCo Agenda √04/05/12 Shared Services – Meeting w/Lisa Baker (YC Housing Auth) √04/09/12 LAFCo – Sarmento/Arges Property Swap Request (Charline

Hamilton-WSac)√

04/09/12 Shared Services – SACOG Ad Hoc Committee Meeting √04/10/12 Lunch with Cecilia Curry – Winters City Council04/12/12 Shared Services/LAFCo – Update meeting w/Commissioner

Davies04/12/12 LAFCo – Woodland Planning Dept. Projects Briefing04/12/12 Program Committee Member Meeting – 2012 CALAFCo

Conference04/17/12 LAFCo – Attend KLCSD meeting04/18/12 Lunch with Lynn Rolston, Sue Heitman, Betsy Marchand,

Trini Campbell - Capay04/18/12 Shared Services/LAFCo – Attend West Sac City Council -

Approval of Project Manager Contract04/20/12 Attend “YM2” Yolo Managers Monthly Meeting04/24/12 CALAFCo U – Shared Services Registered04/25/12 CALAFCo Staff Workshop Registered04/30/12 Shared Services – Mtg with YCPAWS05/01/12 LAFCo – Briefing w/ Commissioner Rexroad

Attachment

Date Event Completed?05/02/12 LAFCo – Attend West Sac City Council Mtg – Davis

Cemetery SOI Policy Discussion05/10/12 LAFCo – Meeting w/Chair re LAFCo Agenda05/11/12 CSAC Institute – Local Government in California Registered05/18/12 Attend “YM2” Yolo Managers Monthly Meeting05/23/12 Attend SACOG Regional Partnership06/01/12 CSAC Institute – Negotiations and Collaboration in Complex

EnvironmentsRegistered

06/15/12 Attend “YM2” Yolo Managers Monthly Meeting06/20/12 Attend Yolo Leaders Group06/27/12 Attend SACOG Regional Partnership

Meet and Greet – Roseanne Chamberlain, Amador LAFCoMeet and Greet – S.R. Jones, Nevada LAFCoYolo County Tour – David Morrison, County PlanningRead Growth Within Bounds: Report on Local Government for the 21st CenturyRead A Primer on City FinanceRead Understanding the Basics of County and City RevenuesRead Cal Facts: California’s Economy and Budget in Perspective – State and Local Finances


InformationSUBJECTRatify Resolution 2012-02 commending City Member Stephen Souza for his tenure with the Yolo County Local AgencyFormation Commission

AttachmentsItem 6-Ratify Reso 2012-02


YOLO COUNTYLOCAL AGENCY FORMATION COMMISSION

Commendation for Commissioner

Stephen A. SouzaRESOLUTION № 2012 - 02

WHEREAS, in May 2004, Stephen A. Souza was elected to the Davis City Council; and

WHEREAS, on June 26, 2006, Mr. Souza was sworn in as an Alternate City Member of the Yolo County Local Agency Formation Commission; and

WHEREAS, in May 2008, Commissioner Souza became a Regular City Member; and

WHEREAS, Mr. Souza made an immediate contribution with his passion and enthusiasm for LAFCo issues; and

WHEREAS, during his six (6) years as a Commissioner, Stephen considered and deliberated on a range of municipal service reviews and sphere of influence studies andapproximately twelve (12) proposals which consisted of two (2) reorganizations, five (5)annexations, one (1) dissolution, three (3) out of agency agreements, and the authorization of one (1) new district power; and

WHEREAS, Commissioner Souza showed his genuine interest in LAFCo and dedication above and beyond by participating on several sub-committees, including interviewing and selecting consultants to prepare the Davis Municipal Service Review and Sphere of Influence Study and the Comprehensive Fiscal Analysis for the Dunnigan Incorporation Proposal; and

WHEREAS, during his tenure on Yolo LAFCo, Stephen attended several California Association of LAFCo’s (CALAFCO) Conferences, which included such locales as Yosemite, Palm Springs, and Napa; and

WHEREAS, in October 2009, Commissioner Souza was elected to CALAFCO as a City Member on its Board of Directors and he was re-elected to the CALAFCO Board in 2010 and again in 2011 by a landslide; and

WHEREAS, Mr. Souza was instrumental in bringing about CALAFCO’s new regional structure, including the adoption of Bylaw amendments, organizational policies, election procedures, and a regional map for the purpose of ensuring broad representation in statewide issues and electing Board members; and

WHEREAS, during his tenure on the CALAFCO Board of Directors, Stephen was actively involved on the CALAFCO Legislative Committee; and

WHEREAS, Stephen was personable, conscientious, thoughtful, and pragmatic in hisapproach during his tenure with Yolo LAFCo and the CALAFCO Board; and

NOW, THEREFORE, BE IT HEREBY RESOLVED that the Yolo County Local Agency Formation Commission commends Stephen A. Souza for his steadfast efforts and valuable contribution as a Yolo LAFCo Commissioner and CALAFCO Board Member and warmly wishes him the best in all his future endeavors.

PASSED AND ADOPTED this 16th day of April 2012 by the following vote:

AYES: Davies, Rexroad, Saylor, Souza, Woods

_____________________________Olin Woods, ChairYolo Local Agency Formation Commission

Regular 7. LAFCOMeeting Date: 04/16/2012

InformationSUBJECTAmend the fiscal year 2011-12 Budget to increase the professional and special services account by $7,500 and authorize theChair to execute an agreement with the Animal Protection League to provide professional services to identify potentialenhancements to existing animal control operations and a financial evaluation of alternative organizational models for theShared Services Initiative

AttachmentsItem 7-Animal Protection League Contract memoItem 7 ATT-Contract 2012-03


LAFCo Agreement 2012-03Animal Protection League Professional Services

April 16, 20121

AGREEMENT NO. 2012-03

Agreement with Animal Protection League (Suzanne Marks Gibbs and Tammie Murrell)for Professional Services

This Agreement is made this 16th day of April 2012 by and between the Yolo Local Agency Formation Commission (“Commission”) and the Animal Protection League (Suzanne Marks Gibbs and Tammie Murrell)., PO Box 1863, Stockton, CA 95201 (“Animal Services Consultant”), who agree as follows:

TERMS

1. Animal Services Consultant shall provide a review of Yolo County Animal Services to the Commission (on behalf of Yolo County and the cities of Davis, West Sacramento, Winters and Woodland) as identified in the attached Scope of Work (Attachment A).

2. Animal Services Consultant shall perform the services identified in the attached Scope of Work.Either party may terminate this Agreement for any reason upon the provision of fifteen (15) days written notice to the other party. Commission shall have no obligation to pay Animal Services Consultant any further funds for services provided by Animal Services Consultant after the effective date of any termination set under this paragraph. Commission shall be obligated to pay Animal Services Consultantfor all services provided by Animal Services Consultant up to the effective date of the termination. This agreement may be extended by adding services and compensation to the scope of work by mutual agreement of the parties.

3. Subject to Animal Services Consultant’s satisfactory performance of the terms and conditions of this Agreement, and upon Animal Services Consultant’s submission of an appropriate invoice, Commission shall pay Animal Services Consultant the hourly rate of $75.00 per hour, with a not to exceed total of $7,500.00 (Attachment A).

4. Animal Services Consultant shall exercise all of the care and judgment consistent with good practices in the performance of the services required by this Agreement. In addition, Animal Services Consultant shall indemnify, defend and hold harmless the Commission, its elected representatives, officers, agents, and employees from and against any and all claims, demands, losses, defense costs, expenses (including reasonable attorney fees) or liability of any kind or nature, for personal injury or property damage arising out of or, as a result of litigation or administrative proceeding(s), alleged to arise out of any negligent act, error or omission of Animal Services Consultant, its officers, agents or employees, in performing the services, responsibilities or duties required of Animal Services Consultantby this Agreement. The provisions of this section shall survive the termination or expiration of this Agreement.

5. During the term of this Agreement, Animal Services Consultant shall at all times maintain, at its expense, insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of the work hereunder by the Animal Services Consultant or any agents, representatives, employees, or subcontractors of Animal Services Consultant.

Attachment 1


April 16, 20122

a. At a minimum this insurance shall include coverage for comprehensive general liability insurance, workers’ compensation insurance as required by the State of California, employer’s liability insurance, professional liability insurance and automobile liability insurance. The coverage shall include claims arising out of Animal Services Consultant’s use of motor vehicles, including owned, non-owned, and hired motor vehicles. The comprehensive general liability coverage shall not exclude liability assumed by written contract or agreement. The comprehensive general liability insurance shall include broad form property damage insurance.

b. The limits of such insurance shall be no less than $1,000,000 individual and $2,000,000 aggregate for the comprehensive general liability insurance, $1,000,000 for the employer’s liability insurance per accident for bodily injury or disease, $1,000,000/occurrence and $1,000,000/aggregatefor the professional liability insurance, and $1,000,000/occurrence (general) and $500,000/occurrence (property) for the automobile liability insurance. The Commission, its elected representatives, officers, agents, employees and volunteers shall be named as additional insured on all but the professional liability insurance.

c. Any deductibles or self-insured retentions must be declared to and are subject to the approval of the Yolo County Risk Manager.

d. Coverage shall not be suspended, voided, or canceled by either party or reduced in coverage or in limits, except after thirty (30) days prior written notice by certified mail (return receipt requested)has been given to the County Risk Manager.

e. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise approved by the County Risk Manager.

f. Any insurance maintained by the Commission shall apply in excess of, and not contribute to, insurance provided by Animal Services Consultant’s liability insurance policy.

As soon as reasonably possible, Animal Services Consultant shall furnish the Commission with original endorsements effecting coverage required by this section (Section 5). The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received by the Commission and are subject to the approval of the County Risk Manager.

Animal Services Consultant shall maintain a professional errors and omissions policy with amounts not less than $1,000,000 individual, $1,000,000 aggregate covering the services provided under this Agreement.

6. Animal Services Consultant shall comply with all applicable laws and regulations, including, but not limited to, any which are promulgated to protect or prevent conflicts of interest. Animal Services Consultant shall defend Commission and reimburse it for any fines, damages, or costs (including reasonable attorney fees) that might be incurred or assessed based upon a claim or determination that Animal Services Consultant has violated any applicable law or regulation.


April 16, 20123

7. Animal Services Consultant understands that none of its assigned personnel are employees of the Commission and are not eligible for any Commission employee benefits, including, but not limited to,unemployment, health/dental insurance, worker's compensation, vacation, or sick leave.

8. Animal Services Consultant will hold in confidence all information disclosed to or obtained by Animal Services Consultant which relates to activities under this Agreement and/or to Commission’s plans or activities. In addition, Animal Services Consultant shall retain all of its own records regarding this Agreement and the services provided hereunder for a period of not less than (4) years, and shall make them available to Commision for audit and discovery purposes in compliance with all applicable laws.

9. This Agreement shall be deemed to be executed within the State of California and construed in accordance with and governed by the laws of the State of California. Any action or proceeding arising out of this Agreement shall be filed and resolved in a State court located in Woodland, California.

10. This Agreement constitutes the entire agreement of the parties, and no other agreements or representations, oral or written, have been made or relied upon by either party. This Agreement may only be amended in writing signed by both parties, and any other purported amendment shall be of no force or effect. This Agreement shall be subject to disclosure pursuant to the California Public Records Act.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above by affixing their signatures hereafter.

Animal Protection League Commission

By______________________________ ________________________________Olin Woods, Chair

______________________________Print name/title Approved as to Form:

On behalf of:Animal Protection LeaguePO Box 1863, Stockton, CA 95201 ________________________________

Robyn Truitt Drivon, Commission Counsel


April 16, 20124

ATTACHMENT A

SCOPE OF WORK FOR YOLO COUNTY ANIMAL SERVICES

This proposed scope of work is based on the Animal Protection League’s (APL) understanding of Yolo

County’s need to examine its countywide animal services. It will be APL’s (specifically Sue Marks

Gibbs and Tammie Murrell) responsibility to perform initial research of current operations and budgets to

determine if 1) enhancements can be made to existing operations and 2) if a different organizational

model could lower costs and improve services to the citizens of Yolo County and its cities.

Specifically APL (Consultant) will:

1) Meet with current animal services staff to gain an overview understanding of operations and

facilities.

2) Meet with budget (or animal services) staff regarding expenditure, revenue, and fee structures

currently in place. The County/Cities will provide relevant historical data as well as operating

expense and revenue budgets for recent years.

3) Provide a written report of recommendations and financial projections.

Fee and Timeline

Consultant fee is $75.00 per hour with a not-to-exceed total of $7,500.00.

Consultants will complete research and provide a report within two months of contract approval,

provided that the County/Cities are responsive in sharing data and staff are available as needed to answer

questions.


InformationSUBJECTAmend the Fiscal Year 2011-12 Budget to increase the Professional and Special Services Account by $10,000 and authorizethe Chair to execute an agreement with the City of West Sacramento to provide project management professional services notto exceed $70,000 to support the Shared Services Initiative

AttachmentsItem 8-WSac Proj Mgr Contract memoItem 8 ATT- Contract 2012-04


Agreement Between City of West Sacramento and Yolo County LAFCo – Shared Services Coordinator FY 12-13

AGENCY AGREEMENT BETWEEN YOLO COUNTY LAFCO AND THE CITY OF WEST SACRAMENTO

Agreement No. 2012-04

This agreement, effective upon execution by both parties, is made and entered into by and between the Yolo County Local Agency Formation Commission (hereinafter referred to as "LAFCo") whose business address is 625 Court Street, Ste 203, Woodland, California 95695, and the City of West Sacramento, (hereinafter referred to as "City") whose business address is 1110 West Capitol Avenue, West Sacramento, California 95691.

The parties agree as follows:

1. TERM: It is the intention of the parties that between the period of the effective date of this contract through June 30, 2013, the City will render Project Management and other related hourly services, part-time, as needed, to LAFCo. The employees assigned to do the work will continue to be City employees who will work under the direction of the LAFCo Executive Officer and City Assistant City Manager as it relates to services performed under this agreement. The parties may choose to renew this agreement, modify it or let it expire.

2. SERVICE DESCRIPTION: City shall provide the following services to LAFCo: Qualified employees to assist the LAFCo Executive Officer in coordinating a Shared Service Program for agencies and special districts located in Yolo County. The City will assign qualified employees subject to review and approval by LAFCo to perform work and complete assignments per the scope of work as attached (see Attachment A). Theassigned employees will be under the general direction of the Assistant City Manager of West Sacramento (ACM) and/or LAFCo, Executive Officer, depending on the nature of the work to be performed. The combined hours of the employees assigned shall be approximately equal to a .5 FTE and the total billing amount shall not exceed $70,000 as noted in Section 4.

3. COMPENSATION FOR SERVICES: During the term of this agreement, assigned City employees are expected to perform services on an as needed basis in the vicinity where needed. Employees may arrange working hours at their discretion and convenience as is allowed per their regular City duties to implement the elements of the Shared Services Program. However, it is understood by the parties that Shared Services is a priority and a substantial portion of project management hours will be rendered at LAFCo premises. Rates for services rendered will be the hourly rate. The Project Manager billing rate shall be $64.95 per hour. The ACM’s time will not be billed to LAFCo.

4. CLAIM FOR SERVICES RENDERED: The City shall provide LAFCo with an itemized statement for services rendered on a monthly basis. The statement shall show the names of the employees assigned, the hourly rate, amount of time worked and

Attachment 1


tasks worked on. The itemized statement will be promptly submitted to the Auditor/Controller, County of Yolo who will reimburse City for services rendered during the term of this Agreement at a maximum amount not to exceed:

SEVENTY THOUSAND AND NO/100 DOLLARS ($70,000)

6. TERMINATION: Notwithstanding any other provisions of this agreement, this agreement may be terminated by either party without cause upon fourteen (14) days written notice to the other party.

7. CITY OF WEST SACRAMENTO EMPLOYEES: No relationship of employer and employee is created by this agreement as to LAFCo, it being understood that assigned employees are City of West Sacramento employees and shall not have any claim under this agreement or otherwise against LAFCo, it’s officers, agents, and employees, for vacation pay, sick leave, retirement benefits, social security, worker's compensation, disability, or unemployment insurance benefits or employee benefits of any kind.

8. TOOLS AND INSTRUMENTS: City shall supply all tools and instruments required to perform the services under this agreement, except that LAFCo shall provide a work station and incidental office equipment and materials as may be necessary for services rendered at the premises of LAFCo.

9. ENTIRE AGREEMENT: This agreement supersedes any and all agreements, either oral or written, between the parties hereto with respect to the rendering of services by City to LAFCo and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever.

10. ASSIGNMENT OF AGREEMENT: Neither this agreement nor any duties or obligations under this agreement may be assigned by the party without the prior written consent of the other party.

11. INDEMNIFICATION CLAUSE: The parties agree that any costs and/or liability incurred resulting from City of West Sacramento personnel working on the Shared Services Program will be shared equally by the parties. The parties to this Agreement are members of the Yolo County Public Agency Risk Management Insurance Authority (YCPARMIA), which provides workers’ compensation and general liability coverage. For those who are members of YCPARMIA, the shared costs include the equal distribution of all costs incurred for the purpose of premium calculations.

12. INSURANCE: While this Agreement is in force, services provided under the terms and conditions of this agreement shall be insured by each party as primary to the other.

13. COMPLIANCE WITH LAWS; NON-DISCRIMINATION: The Parties will observe and comply with all applicable federal, state and local laws, ordinances and codes that relate to the services to be provided pursuant to this agreement.


14. AMENDMENTS: This agreement may be modified at any time only by a written agreement executed by all of the then parties to this agreement.

15. WAIVER: No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition. No waiver shall be binding unless executed in writing by the party making this waiver.

16. GOVERNING LAW: The validity and construction of this agreement and its terms or provisions, as well as the rights and duties of the parties hereunder, shall be governed by the laws of the State of California. The place of performance and transaction of business shall be in the County of Yolo, State of California, and in the event of litigation, the exclusive venue and place of jurisdiction shall be the County of Yolo, State of California.

17. CONSTRUCTION: This agreement reflects the contributions of both parties and accordingly the provisions of Civil Code section 1654 shall not apply to address or interpret any uncertainty. This agreement may be approved in counterparts.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the dates of their signatures.

YOLO COUNTY LAFCO

By: ___________________________________ Date:__________________Olin Woods, ChairYolo County LAFCO

CITY OF WEST SACRAMENTO

By: _____________________________________ Date:________________Toby Ross, City ManagerCity of West Sacramento


Approved As To Form:

By: ___________________________________Robyn Truitt Drivon, County Counsel

By: ___________________________________Jeff Mitchell, City Attorney

_ _ _ _ _ _ _ _ _ _


ATTACHMENT A

SCOPE OF WORKSHARED SERVCIES COORDINATOR

Development of Work Plan

1) Review the shared services material generated to date and meet with the LAFCo Executive Officer for background.

2) Assemble the list of possible shared services opportunities from the summary tally dated January 20, 2012.

3) Divide the list into categories of opportunities segregated by different timeframes, such as short-, medium-, long- term opportunities and those that may be achievable but merit further study.

4) Prepare a work plan for the prioritized shared service opportunities, including service goals, implementation timeline and required tasks for implementation.

5) Develop a shared service performance template to define each shared service, how it will be administered, who will be performing the service, costs, implementation details and the estimated savings.

6) Develop an evaluation metric and process that will be used to assess the effectiveness of the shared service after a specified period of time.

Reporting

7) The LAFCO Executive Officer and SSC will attend and provide oral/written shared services program updates to the Yolo managers at their monthly meetings.

8) Shared Service priorities, work plans, templates and evaluation metrics prepared as listed above will be distributed for review and modified as necessary by the Yolo Managers group (“YM2”).

Implementation

9) The Shared Services Coordinator (SSC) will proceed with the implementation of the shared services work program as directed by the LAFCo Executive Officer. The SSC will strategize and work through day to day issues with the LAFCo Executive Officer, the ACM and the agencymanagers as necessary.

10) The Shared Services Coordinator and LAFCo Executive Officer will meet on a regular basis to coordinate shared services program activities.


InformationSUBJECTConsider approval of the draft Audit prepared by Richardson & Company of the Yolo LAFCo’s financial statements for fiscalyears ending 2009, 2010, and 2011

AttachmentsItem 9-Draft Audit Cover memoItem 9-Draft Audit memo 03-26-12Item 9 ATT A-SAS letterItem 9 ATT B-Mgmt letterItem 9 ATT C-Audit

Form ReviewForm Started By: Terri Tuck Started On: 04/10/2012 12:08 PMFinal Approval Date: 04/10/2012

Richardson & Company 550 Howe Avenue, Suite 210 Sacramento, California 95825

Telephone: (916) 564-8727

FAX: (916) 564-8728

March 16, 2012

To the Chair and Members of the Yolo County Local Agency Formation Commission

Woodland, California

We have audited the financial statements of the governmental activities and the major fund of Yolo County Local Agency Formation Commission (the LAFCO) as of and for the years ended June 30, 2011, 2010 and 2009. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you in our engagement letter dated November 23, 2011. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the LAFCO are described in Note A to the financial statements. Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, was implemented during the year ended June 30, 2011 and GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, was implemented during the year ended June 30, 2010. We noted no transactions entered into by the LAFCO during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the LAFCO’s financial statements were the other postemployment benefits (OPEB) liability and compensated absences. Management’s estimate of the OPEB liability was based on the contribution as a percentage of payroll in the County of Yolo OPEB Plan valuation multiplied by the LAFCO’s payroll and management’s estimate of the compensated absences liability was based on payroll information provided by the County of Yolo.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit. However, the accounting records for all of the years under audit were not readily available, which affected audit efficiency.

Attachment A


Page 2

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There was one audit adjustment posted during the year ended June 30, 2009 to remove consulting expenses incurred during the previous fiscal year and reduce fund balance as of July 1, 2008 and to reclassify accrued payroll during the year ended June 30, 2009 and retirement contributions to CalPERS during the years ended June 30, 2010 and 2009 to report the amounts on the proper line for reporting in the financial statements. Management has corrected all such misstatements.

Disagreements With Management

For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations

We have requested certain representations from management and the Board that are included in the management representation letter dated March 16, 2012.

Management Consultations With Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the LAFCO’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the LAFCO’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Information in Documents Containing Audited Financial Statements

With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

This information is intended solely for the use of the Commissioners, management and member agencies and is not intended to be and should not be used by anyone other than these specified parties.

March 16, 2012


Telephone: (916) 564-8727

FAX: (916) 564-8728

To the Chair, Members and Management of the Yolo County Local Agency Formation Commission


In planning and performing our audit of the financial statements of the Yolo County Local Agency Formation Commission (the LAFCO) as of and for the years ended June 30, 2011, 2010 and 2009 in accordance with auditing standards generally accepted in the United States of America, we considered the LAFCO’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the LAFCO’s internal control. Accordingly, we do not express an opinion on the effectiveness of the LAFCO’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies and material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiency in the LAFCO’s internal control to be a significant deficiency:

Significant consulting expenditures incurred during the year ended June 30, 2008 were inadvertently posted as expenditures during the year ended June 30, 2009 and several transactions were not posted in the proper general ledger accounts for reporting purposes, such as the June 30, 2010 and 2009 pension contributions, June 30, 2010 travel expenditures and June 30, 2009 accrued payroll and benefits. We recommend the LAFCO regularly review invoices paid as well as budget versus actual comparisons to ensure the expenditures are posted to the proper account and period. We recommend documentation of these reviews be retained for the audit. This will provide a second level of review over transactions posted on the LAFCO’s behalf by the County of Yolo Auditor-Controller, Treasurer & Tax Collector’s Office.

We also noted the following items that are presented for your consideration:

Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, was required to be

Attachment B

To the Chair, Members and Management of the Yolo County Local Agency Formation Commission

Page 2

implemented by all governmental entities during the year ended June 30, 2010. However, we noted the LAFCO had not addressed GASB Statement No. 45 as of the start date of the audit and an estimate of the postretirement health insurance (OPEB) liability was obtained subsequent to audit fieldwork.

The OPEB liability recognized was estimated by using the percentage annual required contribution to covered payroll specified in the County’s OPEB valuation. The OPEB liability is not currently funded and will continue to grow unless it is funded in the future.

Due to the small size of the LAFCO’s staff, it is not possible to separate all duties as effectively as would be possible in a larger organization. Consequently, we recommend financial information be reviewed by the Commissioners on a regular basis to provide another layer of review of financial information that will further limit the risk of error and fraud occurring. Information that we recommend be regularly (i.e. monthly or quarterly) reviewed by the Commissioners include a list of checks cut, County Journal Entries, the general ledger or summarized financial results that includes a budget versus actual comparison and payroll registers. We recommend the Commissioner’s review of this financial information be documented as a consent item in the minutes to the meetings of the Commissioners.

We noted the LAFCO adopted many of the County of Yolo policies, such as the retirement benefits, OPEB benefits, vacation and sick leave and travel and expense reimbursements policies. We recommend the LAFCO disclose policies on its website or maintain hard copies of any policies it does not believe are appropriate to include on its website so the information is readily available to interested parties, including future auditors.

We recommend the LAFCO document the process used to prepare and send information to the County of Yolo Auditor-Controller, Treasurer & Tax Collector’s Office so accounting procedures are documented in the event of staff turnover. This would ease the transition of new staff and decrease the likelihood of error that could cause a misstatement in the financial statements.

Some information needed for the audit was not readily available, including payroll records, the summary of vacation and sick leave, PERS contributions, invoices and check copies for disbursements and support for OPEB activity. We recommend management to review its documentation retention policy and consider what documentation should be retained internally for use during the audit versus being requested from the County of Yolo.

* * * * *

This report is intended solely for the information and use of the Commissioners, management, and member agencies and is not intended to be and should not be used by anyone other than these specified parties.

March 16, 2012


Audited Financial Statements and Compliance Report

June 30, 2011, 2010, and 2009

Attachment C


Audited Financial Statements and Compliance Report

June 30, 2011, 2010, and 2009

Independent Auditor’s Report ................................................................................................................. 1

Government-wide Financial Statements: Statements of Net Assets ..................................................................................................................... 3 Statement of Activities – For the Years Ended June 30, 2011, 2010, and 2009 ................................. 4

Fund Financial Statements: Balance Sheets – Governmental Fund ................................................................................................ 5 Reconciliation of the Balance Sheets to the Government-wide Statements of

Net Assets ....................................................................................................................................... 6 Statements of Revenues, Expenditures, and Changes in Fund Balance –

Governmental Fund ......................................................................................................................... 7 Reconciliation of the Statements of Revenues, Expenditures, and Changes in

Fund Balance to the Government-wide Statement of Activities ..................................................... 8 Notes to the Basic Financial Statements ............................................................................................. 9

Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget

and Actual – Governmental Fund – For the Year Ended June 30, 2011 ....................................... 15 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget

and Actual – Governmental Fund – For the Year Ended June 30, 2010 ....................................... 16 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget

and Actual – Governmental Fund – For the Year Ended June 30, 2009 ....................................... 17

Compliance Report Independent Auditor’s Report on Internal Control over Financial Reporting

and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditing Standards ................................ 18

Schedule of Findings ......................................................................................................................... 20


Telephone: (916) 564-8727

FAX: (916) 564-8728

1

INDEPENDENT AUDITOR'S REPORT



We have audited the accompanying financial statements of the governmental activities and the major fund of the Yolo County Local Agency Formation Commission (the LAFCO) as of and for the years ended June 30, 2011, 2010, and 2009, which collectively comprise the LAFCO’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the LAFCO’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the LAFCO as of June 30, 2011, 2010, and 2009, and the respective changes in financial position for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2012, on our consideration of the LAFCO’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for


2

consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

The LAFCO has not presented Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of the basic financial statements.

March 16, 2012

2011 2010 2009

ASSETS Cash 173,273$ 123,523$ 118,873$ Prepaid expenses 919

TOTAL ASSETS 174,192$ 123,523$ 118,873$

LIABILITIESAccounts payable 80$ 213$ 33$ Accrued payroll 8,381 6,360 9,251Noncurrent liabilities:

OPEB liability 59,942 29,829 Compensated absences - current 6,377 6,285 11,954

Compensated absences - noncurrent 27,214 16,908 11,053 TOTAL LIABILITIES 101,994 59,595 32,291

NET ASSETSUnrestricted 72,198 63,928 86,582

TOTAL NET ASSETS 72,198 63,928 86,582

TOTAL LIABILITIES AND NET ASSETS 174,192$ 123,523$ 118,873$

The accompanying notes are an integral part of these financial statements.

June 30, 2011, 2010 and 2009

STATEMENTS OF NET ASSETS


3

2011 2010 2009

EXPENSESSalaries and benefits 290,756$ 315,131$ 359,936$ General and administrative 13,104 16,570 13,571 Legal 6,858 6,055 8,748 Transportation and travel 4,972 6,038 7,933 Training 3,574 4,019 2,654 Office 1,260 1,467 1,747 Professional and specialized services 20,944

TOTAL EXPENSES 320,524 349,280 415,533

PROGRAM REVENUESIntergovernmental revenues

County of Yolo 161,750 162,527 148,090 City of Davis 56,370 58,185 51,757 City of West Sacramento 52,488 49,896 43,909 City of Woodland 47,716 49,408 47,389 City of Winters 5,176 5,038 5,035

Charges for services 54,953 TOTAL PROGRAM REVENUES 323,500 325,054 351,133

NET PROGRAM REVENUES (EXPENSES) 2,976 (24,226) (64,400)

GENERAL REVENUESOther income 4,231 50 6,535 Interest income 1,063 1,522 5,454

TOTAL GENERAL REVENUES 5,294 1,572 11,989

CHANGE IN NET ASSETS 8,270 (22,654) (52,411)

Net assets at beginning of year 63,928 86,582 138,993

NET ASSETS AT END OF YEAR 72,198$ 63,928$ 86,582$



STATEMENT OF ACTIVITIES

For the Years Ended June 30, 2011, 2010, and 2009

4

2011 2010 2009

ASSETSCash and investments 173,273$ 123,523$ 118,873$ Prepaid expenses 919

TOTAL ASSETS 174,192$ 123,523$ 118,873$

LIABILITIES AND FUND BALANCE

LIABILITIESAccounts payable 80$ 213$ 33$ Accrued payroll 8,381 6,360 9,251Compensated absences - current 6,759

TOTAL LIABILITIES 8,461 6,573 16,043

FUND BALANCEUnassigned 165,731 116,950 102,830

TOTAL FUND BALANCE 165,731 116,950 102,830

TOTAL LIABILITIES AND FUND BALANCE 174,192$ 123,523$ 118,873$



June 30, 2011, 2010, and 2009

BALANCE SHEETS - GOVERNMENTAL FUND

5

Fund balance - governmental funds, June 30, 2011 165,731$

Amounts reported for governmental activities in the statement ofnet assets are different because:

Certain liabilities are not due and payable in the current period and, therefore, are not reported in governmental funds:

OPEB liability (59,942) Compensated absences (33,591)

Net assets - governmental activities, June 30, 2011 72,198$



Certain liabilities are not due and payable in the current period and, therefore, are not reported in governmental funds:

OPEB liability (29,829) Compensated absences (23,193)




Compensated absences are not due and payable in the currentperiod and, therefore, are not reported in the governmental funds (16,248)



June 30, 2011, 2010, and 2009


RECONCILIATION OF THE BALANCE SHEETS TO THE GOVERNMENT-WIDE STATEMENTS OF NET ASSETS

6

2011 2010 2009

REVENUESIntergovernmental revenues:

County of Yolo 161,750$ 162,527$ 148,090$ City of Davis 56,370 58,185 51,757 City of West Sacramento 52,488 49,896 43,909 City of Woodland 47,716 49,408 47,389 City of Winters 5,176 5,038 5,035

Charges for services 54,953Other revenues 4,231 50 6,535Use of money 1,063 1,522 5,454

TOTAL REVENUES 328,794 326,626 363,122

EXPENDITURESSalaries and benefits 250,245 278,357 343,688General and adminstrative 13,104 16,570 13,571Legal fees 6,858 6,055 8,748Transportation and travel 4,972 6,038 7,933Training 3,574 4,019 2,654Office expenses 1,260 1,467 1,747Professional and specialized services 20,944

TOTAL EXPENDITURES 280,013 312,506 399,285

NET CHANGE IN FUND BALANCE 48,781 14,120 (36,163)

Fund balance at beginning of year 116,950 102,830 138,993

FUND BALANCE AT END OF YEAR 165,731$ 116,950$ 102,830$



GOVERNMENTAL FUNDCHANGES IN FUND BALANCE -

STATEMENTS OF REVENUES, EXPENDITURES AND

For the Years Ended June 30, 2011, 2010 and 2009

7

Net change in fund balance - governmental funds for the year ended June 30, 2011 48,781$

Amounts reported for governmental funds in the statement of activitiesare different because:

Changes in certain expenses reported in the statement of activitiesdo not require the use of current financial resources and, therefore,are not reported as expenditures in governmental funds:

OPEB expense (30,113) Compensated absences (10,398)

Change in net assets - governmental activities for the year ended June 30, 2011 8,270$

Net change in fund balance - governmental funds for the year ended June 30, 2010 14,120$


Changes in certain expenses reported in the statement of activitiesdo not require the use of current financial resources and, therefore,are not reported as expenditures in governmental funds:

OPEB expense (29,829) Compensated absences (6,945)

Change in net assets - governmental activities for the year ended June 30, 2010 (22,654)$

Net change in fund balance - governmental funds for the year ended June 30, 2009 (36,163)$


Changes in compensated absences reported in the statement of activitiesdo not require the use of current financial resources and, therefore,are not reported as expenditures in governmental funds. (16,248)

Change in net assets - governmental activities for the year ended June 30, 2009 (52,411)$


TO THE GOVERNMENT-WIDE STATEMENTS OF ACTIVITIES

For the Years Ended June 30, 2011, 2010 and 2009


RECONCILIATION OF THE STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

8


NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2011, 2010, and 2009

9

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Yolo County Local Agency Formation Commission (the LAFCO) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The most significant accounting policies of the LAFCO are described below.

Background: The LAFCO is an independent agency responsible for the implementation of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 in the County of Yolo. The LAFCO became an independent agency separate from Yolo County in 2001. The LAFCO’s membership includes two county supervisors appointed by the County of Yolo Board of Supervisors, two City Council members appointed by the City Selection Committee, and one public member appointed by the LAFCO. The LAFCO is empowered to review, approve or deny boundary changes, city annexations, consolidations, special district formations, incorporations for cities and special districts, and to establish local “Spheres of Influence”. The Sphere of Influence for each governmental agency is a plan for its future boundary and service area. The LAFCO’s function is outlined in Government Code, Section 56000 et seq. known as the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.

Basis of Presentation – Government-wide Financial Statements: The statement of net assets and statement of activities display information about the primary government (the LAFCO). These statements include the financial activities of the LAFCO.

The statement of activities presents a comparison between direct expenses and program revenues for the LAFCO’s governmental activity. Direct expenses are those that are specifically associated with the LAFCO. Program revenues include contributions that are restricted to meeting the operational requirements of the LAFCO. Revenues that are not classified as program revenues, including interest income, are presented as general revenues.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Nonexchange transactions in which the LAFCO gives (or receives) value without directly receiving (or giving) equal value in exchange, include the contributions from member jurisdictions.

When both restricted and unrestricted resources are available, it is the LAFCO’s policy to use restricted resources first, then unrestricted resources as they are needed.

Basis of Presentation – Fund Financial Statements: The accounts of the LAFCO are organized on the basis of funds. A fund is a separate accounting entity with a self-balancing set of accounts. Each fund is established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions, or limitations.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the LAFCO considers all revenues to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual basis accounting.


NOTES TO BASIC FINANCIAL STATEMENTS (Continued)

June 30, 2011, 2010, and 2009

10

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The LAFCO reports the following major governmental fund:

General Fund – The General Fund is the general operating fund of the LAFCO and accounts for revenues collected to provide services and finance the fundamental operations of the LAFCO. The fund is charged with all costs of operations.

Compensated Absences: Unused vacation may be accumulated up to a specified maximum and is paid at the time of termination from the LAFCO’s employment. Upon retirement, unused sick leave may either be reported to CalPERS to earn additional retirement service credit (2,000 hours of sick leave earns a full year of service credit) or may be paid to the employee (one half of the balance over 200 hours will be paid at the employee’s hourly pay rate) at the discretion of the employee. The LAFCO is not obligated to pay for unused sick leave if an employee terminates prior to retirement or if less than 200 hours are accrued upon retirement. The LAFCO accrues accumulated unpaid compensated absences when earned by the employee. The cost of vacation and sick leave is recorded in the period earned in the government-wide statements. A liability is reported in the General Fund only if the liability has matured, for example, as a result of employee resignations or retirements.

Fund Balance: Governmental funds report nonspendable, restricted, committed, assigned and unassigned balances.

Nonspendable Funds – Fund balance should be reported as nonspendable when the amounts cannot be spent because they are either not in spendable form, or are legally or contractually required to be maintained intact. Nonspendable balances are not expected to be converted to cash within the next operating cycle, which include pre-paid expenses and long-term receivables.

Restricted Funds – Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

Committed Funds – Fund balance should be reported as committed when the amounts can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority. These amounts cannot be used for any other purpose unless the governing body modifies or removes the fund commitment.

Assigned Funds – Fund balance should be reported as assigned when the amounts are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.

Unassigned Funds – Unassigned fund balance is the residual classification of the LAFCO’s funds and includes all spendable amounts that have not been restricted, committed, or assigned to specific purposes.

The LAFCO has only unassigned fund balance.

Net Assets: The government-wide financial statements present net assets. Net assets are categorized as invested capital assets, restricted and unrestricted.

Invested in Capital Assets – This category groups all capital assets into one component of net assets. Accumulated depreciation reduces the balance in this category.



June 30, 2011, 2010, and 2009

11

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Restricted Net Assets – This category presents external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Assets – This category represents net assets of the LAFCO that is not restricted for any project or other purpose.

The LAFCO has only unrestricted net assets.

Budget: The LAFCO adopts an annual budget for the General Fund that is consistent with generally accepted accounting principles at the LAFCO’s May meeting. The budget includes expenditures and the means of financing them and is used for planning purposes. Budgetary control is exercised at the major object level. All budgetary changes during the year require approval of the Commissioners. Encumbrances are used as an extension of normal budgetary accounting in the General Fund. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance since they do not constitute expenditures or liabilities.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

NOTE B – CASH AND INVESTMENTS

Investment in the County of Yolo Investment Pool: The LAFCO’s cash is held in the County of Yolo treasury. The County maintains an investment pool and allocates interest to the various funds based upon the average daily cash balances. Investments held in the County’s investment pool are available on demand to the LAFCO and are stated at fair value.

Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value on an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in the market interest rates. As of June 30, 2011, 2010, and 2009, the weighted average maturity of the investments contained in the County of Yolo investment pool was approximately 397, 296, and 318 days, respectively.

Credit Risk: Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The County of Yolo investment pool does not have a rating provided by a nationally recognized statistical rating organization.

Custodial Credit Risk: Custodial risk is the risk that the government will not be able to recover its deposits or the value of its investments that are in the possession of an outside party. Custodial credit risk does not apply to a local government’s indirect deposits or investment in securities through the use of government investment pools (such as the County of Yolo investment pool).



June 30, 2011, 2010, and 2009

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NOTE C – LONG-TERM LIABILITIES

The following is a summary of long-term liability activity for the years ended June 30, 2011, 2010, and 2009:

Due WithinJuly 1, 2010 Additions Retirements June 30, 2011 One Year

Compensated absences 23,193$ 12,522$ (2,124)$ 33,591$ 6,377$





NOTE D – DEFINED BENEFIT PENSION PLAN

Plan Description: The LAFCO is a member in the Yolo County Miscellaneous Pension Plan (the Plan), which contributes to the California Public Employees’ Retirement System (CalPERS), an agent multiple-employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statue. The County selects optional benefits provisions from the benefit menu by contract with CalPERS and adopts those benefits through memorandum of understandings with the various bargaining units. CalPERS issues separate comprehensive annual financial reports. Copies of the CalPERS annual report may be obtained from CalPERS Headquarters, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811.

Under the option the County has selected, all full and part-time permanent County employees and extra help employees who have worked over 1,000 hours in a fiscal year are required to participate in the Yolo County Miscellaneous Pension Plan. Elected officials may also participate at their option. Per diem employees and extra help employee working less than 1,000 hours in a fiscal year are excluded. Benefits vest after five years of service. To be eligible for retirement an employee must be at least 50 years of age and have 5 years of CalPERS credited service. The annual retirement benefit for eligible employees is payable monthly for life, in an amount equal to 2.5% of their average monthly pay rate for the last consecutive 36 months of employment, for each year of credited service up to 37 1/2 years.

Funding Policy: Plan members were required to contribute 7% through December 2008 and 8% beginning in January 2009 of their annual covered salary to the Plan. Plan member contributions are paid by the plan member or the LAFCO pursuant to employment agreements with the various bargaining units. Plan members contributed 7.5% of their annual covered salary during the year ended June 30, 2011 and



June 30, 2011, 2010, and 2009

13

NOTE D – DEFINED BENEFIT PENSION PLAN (Continued)

1% from January 2009 to June 30, 2010 and the LAFCO made the remaining contributions required of plan members on their behalf. The LAFCO is required to contribute at an actuarially determined rate. The rates for the years ended June 30, 2011, 2010, and 2009 were 13.092%, 12.936% and 10.408%, respectively. The contribution requirements of plan members and the LAFCO are established and may be amended by PERS. The LAFCO’s contributions for the years ended June 30, 2011, 2010, and 2009 were $50,772, $62,492, and $44,853, respectively.

NOTE E – OTHER POSTEMPLOYMENT BENEFITS PLAN

Plan Description: The LAFCO participates in the County of Yolo Retiree Healthcare Plan (the Plan), a cost-sharing multiple-employer defined benefit other postemployment benefits (OPEB) plan, which provides health insurance benefits to eligible retired employees and their beneficiaries. Medical insurance benefits are administered by the California Public Employee’s Retirement System (CalPERS), a multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California, in accordance with the Public Employees Medical and Hospital Care Act (PEMHCA). To be eligible, an employee must retire under the CalPERS program within 120 days of separation from employment. Medical and dental insurance benefits for retirees are not currently required by contract, but have been provided as a matter of practice. Information about the Plan may be found in the County of Yolo Comprehensive Annual Financial Report (CAFR) at yolocounty.org under the publications listed on the page for the Auditor-Controller and Treasurer-Tax Collector.

Funding Policy: The contribution requirements of participating employers and plan members are established and may be amended by the County of Yolo Board of Supervisors. Currently the County and the LAFCO do not contribute to the Plan and pay retiree health insurance premiums on a pay-as-you-go basis. However, the County is evaluating trust alternatives for funding the Plan, including the CalPERS California Employers Retiree Benefit Trust (CERBT).

The LAFCO’s OPEB cost equals the amount of the annual required contribution (ARC) plus or minus adjustments for prior year differences in the amount of actual contributions as compared to the ARC. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period of 30 years. The LAFCO’s annual required contributions for the years ended June 30, 2011 and 2010 were $32,049 and $29,829, respectively. These amounts were estimated using the annual required contribution for the County’s OPEB Plan as a percentage of covered payroll and applying the contribution percentages to the LAFCO’s payroll for the years ended June 30, 2011 and 2010.

The LAFCO made no contributions to the Plan during the years ended June 30, 2011 and 2010. Consequently, the annual required contributions are reported as an OPEB liability in the government-wide financial statements. As required by GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, interest was added to the OPEB liability and the liability was amortized during 2011 to determine the June 30, 2011 OPEB liability.

The LAFCO adopted GASB Statement No. 45 during the year ended June 30, 2010 and the LAFCO must report its OPEB liability beginning June 30, 2010. No ARC or OPEB liability is required to be reported under GASB Statement No. 45 for the year ended June 30, 2009.



June 30, 2011, 2010, and 2009

14

NOTE F – INSURANCE

The LAFCO participates in the Yolo County Public Agency Risk Management Insurance Authority (YCPARMIA), a public entity risk pool of governmental entities within the County of Yolo, for comprehensive general and auto liability, and workers’ compensation insurance. Through the LAFCO’s membership in the YCPARMIA, the District is provided with excess coverage through the California State Association of Counties-Excess Insurance for catastrophic liability losses. Loss contingency reserves established by YCPARMIA are funded by contributions from member agencies.

The LAFCO pays an annual premium to YCPARMIA that includes its pro-rata share of excess insurance premiums, charges for the pooled risk, claims adjusting and legal costs, and administrative and other costs to operate the YCPARMIA. The LAFCO’s deductibles and maximum coverage for the years ended June 30, 2011, 2010 and 2009 were as follows:

Coverage YCPARMIA Excess Deductible

General and Auto Liability 500,000$ 40,000,000$ 1,000$ Worker's Compensation 500,000 1,000,000 1,000

The LAFCO has had no settlements which exceeded insurance coverage in the last three fiscal years and no significant changes or reductions in insurance coverage occurred during the years ended June 30, 2011, 2010 and 2009.

NOTE G – RELATED PARTY TRANSACTIONS

The County of Yolo provides office space, furniture, accounting services, information systems equipment and support and legal services to the LAFCO. Legal services and information systems support are billed separately and at amounts that will approximately recover the County’s full cost of providing such services. Expenditures provided by the County for legal services totaled $6,858, $6,055, and $8,748 and expenditures for information systems support totaled $6,072, $7,896 and $1,196, respectively, for the years ended June 30, 2011, 2010, and 2009. Office space, furniture and accounting services are provided by the County free of charge.

REQUIRED SUPPLEMENTARY INFORMATION

VarianceWith Final

BudgetActual Positive

Original Final Amounts (Negative)

REVENUESIntergovernmental revenues


Other revenues 2,020 2,020 4,231 2,211$ Use of money 1,000 1,000 1,063 63

TOTAL REVENUES 326,520 326,520 328,794 2,274

EXPENDITURESSalaries and benefits 287,720 287,720 250,245 37,475 General and administrative 17,550 17,550 13,104 4,446 Legal fees 15,000 15,000 6,858 8,142 Professional and specialized services 14,000 14,000 14,000 Transportation and travel 6,000 6,000 4,972 1,028 Training 4,000 4,000 3,574 426 Office expenses 2,250 2,250 1,260 990

TOTAL EXPENDITURES 346,520 346,520 280,013 66,507

NET CHANGE IN FUND BALANCE (20,000) (20,000) 48,781 68,781


FUND BALANCE AT END OF YEAR 96,950$ 96,950$ 165,731$ 68,781$

For the Year Ended June 30, 2011

Budgeted Amounts


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - GOVERNMENTAL FUND

15

VarianceWith Final





Other revenues 2,525 2,525 50 (2,475)$ Use of money 2,500 2,500 1,522 (978)

TOTAL REVENUES 330,079 330,079 326,626 (3,453)

EXPENDITURESSalaries and benefits 305,184 305,184 278,357 26,827 General and administrative 17,945 17,945 16,570 1,375 Legal fees 15,000 15,000 6,055 8,945 Professional and specialized services 14,000 14,000 14,000 Transportation and travel 6,000 6,000 6,038 (38) Training 4,700 4,700 4,019 681 Office expenses 2,250 2,250 1,467 783


NET CHANGE IN FUND BALANCE (35,000) (35,000) 14,120 49,120


FUND BALNACE AT END OF YEAR 67,830$ 67,830$ 116,950$ 49,120$

Budgeted Amounts



SCHEDULE OF REVENUES, EXPENDITURES

For the Year Ended Jun 30, 2010

AND CHANGES IN FUND BALANCE

16

VarianceWith Final





Charges for services 50,000 54,953 4,953$ Other revenues 10,050 10,050 6,535 (3,515) Use of money 3,500 3,500 5,454 1,954

TOTAL REVENUES 309,730 359,730 363,122 3,392

EXPENDITURESSalaries and benefits 326,466 326,466 343,688 (17,222) Professional and specialized services 50,000 50,000 20,944 29,056 General and administrative 22,464 22,464 13,571 8,893 Legal fees 14,000 14,000 8,748 5,252 Transportation and travel 6,000 6,000 7,933 (1,933) Training 4,700 4,700 2,654 2,046 Office expenses 2,600 2,600 1,747 853


NET CHANGE IN FUND BALANCE (116,500) (66,500) (36,163) 30,337


FUND BALANCE AT END OF YEAR 22,493$ 72,493$ 102,830$ 30,337$

Budgeted Amounts


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE


For the Year Ended June 30, 2009

17

COMPLIANCE REPORT


Telephone: (916) 564-8727

FAX: (916) 564-8728

18

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



We have audited the financial statements of the governmental activities and the major fund of the Yolo County Local Agency Formation Commission (the LAFCO) as of and for the years ended June 30, 2011, 2010, and 2009, which collectively comprise the LAFCO’s basic financial statements and have issued our report thereon dated March 16, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the LAFCO’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the LAFCO’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the LAFCO’s internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over financial reporting, described in the accompanying schedule of findings that we consider to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.


19

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the LAFCO’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to management of the LAFCO in a separate letter dated March 16, 2012.

This report is intended solely for the information and use of the Commissioners, management and member agencies and is not intended to be and should not be used by anyone other than these specified parties.

March 16, 2012


SCHEDULE OF FINDINGS

June 30, 2011, 2010, and 2009

20

Internal Control Over Financial Reporting

Criteria: Internal controls over financial reporting should be in place to ensure management has the ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements.

CURRENT YEAR FINDINGS:

Finding 2011-1

Condition: Significant consulting expenditures incurred during fiscal year 2007/08 were posted as expenditures during fiscal year 2008/09 and several transactions were not posted in the proper general ledger accounts for reporting purposes, such as the 2008/09 and 2009/10 pension contributions, 2009/10 travel expenditures and 2008/09 accrued payroll and benefits.

Effect: Several adjustments had to be posted during the audit to properly report these balances.

Cause: It does not appear the LAFCO’s staff has a procedure in place to regularly review postings made into the general ledger to verify amounts are posted in the proper account and period.

Recommendation: We recommend the LAFCO’s staff review invoices paid to ensure the expenditures are posted in the period that the work was performed as indicated on the invoice. We also recommend the LAFCO’s staff compare year-end balances to the prior period and budget to ensure transactions are consistently reported in the general ledger each year. This will provide a second level of review over transactions posted on the LAFCO’s behalf by the County of Yolo Auditor-Controller, Treasurer & Tax Collector’s Office.

Management’s Response: We will review the postings made into the LAFCO’s general ledger to make sure they are reported in the proper account and period beginning in fiscal year 2011/12.

PRIOR YEAR FINDINGS:

None


InformationSUBJECTConsider and approve reappointment of Alternate Public Member Robert Ramming to another four-year term through May 2016

AttachmentsItem 10-Reappt Alt Public Member RRamming



InformationSUBJECTAdopt the new Yolo LAFCo Administrative Policies and Procedures comprised as follows: 1) incorporates the previouslyadopted policies contained in the “Rules of LAFCo”; 2) incorporates the policy and procedure for the appointment and selectionof the Public Members adopted March 28, 2011; 3) adopts Yolo County Administrative Policies and Procedures as applicable;4) changes the Regular Commission Meeting Day from the 4th Monday to the 4th Thursday of the month effective July 2012;and 5) adopts new budget and financial operations Policies and Procedures

AttachmentsItem 11-Admin Policy/Procedures memoItem 11 ATT 1-Revised 2012 CalendarItem 11 ATT 2-draft Admin Pol/Proc


Attachment 1

Yolo LAFCO 2012 Meeting Calendar

JANUARY

S M T W T F S1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

APRIL

S M T W T F S1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

JULY

S M T W T F S1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30 31

OCTOBER

S M T W T F S1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31

FEBRUARY

S M T W T F S1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29

MAY

S M T W T F S1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30 31

AUGUST

S M T W T F S1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31

NOVEMBER

S M T W T F S1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30

MARCH

S M T W T F S1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

JUNE

S M T W T F S1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16

17 18 19 20 21 22 23

24 25 26 27 28 29 30

SEPTEMBER

S M T W T F S1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30

DECEMBER

S M T W T F S1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

Yolo County Holidays Mar 3 - 7 NACo Legislative Conference – Washington DCLAFCo Current Meetings Apr 25 - 27 CALAFCO Staff Workshop – MurphysLAFCo Proposed Meetings Apr 21 - 25 Capitol to Capitol – Washington DC

May 30 - 31 CSAC Legislative Conference - Sacramento Jul 13 - 17 NACo Annual Conference – Pittsburgh, PASept 5 - 7 League of Cities Annual Conference-San DiegoOct 3 - 5 CALAFCO Annual Conference – Monterey

Nov 27 – 30 CSAC Annual Meeting – Long Beach

Yolo LAFCo

Administrative Policies and Procedures 1 Amended April 16, 2012

YOLO LAFCoADMINISTRATIVE POLICIES AND PROCEDURES

1.0 GENERAL PROVISIONS [CHAPTER I GENERAL PROVISIONS]

1.1 TITLEThe Yolo County Local Agency Formation Commission hereby adopts the following Administrative Policies and Procedures rules for the conduct and a procedure of said Commission and repeals all resolutions in conflict herewith. These rules policies and procedures shall apply to the Yolo County Local Agency Formation Commission and are adopted pursuant to the authority vested in the Commission by Chapter 6.6 of Part 1, Division 2, Title 5 and Chapter 1 of Part 4, Division 1, Title 6 of the Government Code.

1.2 ADOPTION OF PERTINENT YOLO COUNTY ADMINISTRATIVE POLICIES AND PROCEDURESFor administrative polices not addressed herein, the Yolo County Local Agency FormationCommission also adopts all the pertinent portions of the County of Yolo Administrative Policies and Procedures Manual as applicable to operations of the Local Agency Formation Commission including, but not limited to, procurement, personnel administration and accounting. If there are any conflicts between the Administrative Policies and Procedures of the Local Agency Formation Commission and the County of Yolo, the policies and procedures of the Local Agency Formation Commission shall prevail.

1.3 MISSIONThe mission of the Yolo County Local Agency Formation Commission is “to provide professional, innovative, and proactive leadership in the implementation of the policies of the Yolo County Local Agency Formation Commission (LAFCo) to enhance the quality of life for the community.”

1.4 CONFLICT OF INTERESTThe Political Reform Act, Government Code Sections 81000 et seq. requires each state and local government agency to adopt and promulgate a Conflict of Interest Code. The Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations Section 18730, which contains the terms of a standard Conflict of Interest Code. This standard Code can be incorporated by reference and may be amended by the Fair Political Practices Commission after

Attachment 2

Yolo LAFCo


public notice and hearings to conform to amendments in the Political Reform Act. Therefore, terms of 2 California Code of Regulations Section 18730 and any amendments that are duly adopted by the Fair Political Practices Commission, are incorporated by reference herein.

The following designated employees of the Yolo County Local Agency formation Commission shall file Statements of Economic Interests: the Executive Officer; the Assistant Executive Officer; and the Commission Counsel.

Members of the Local Agency Formation Commission shall file Statements of Economic Interests as required by Government Code Section 87200 or this Conflict of Interest Code.

Statements of Economic Interests shall provide disclosure in all of the following categories: All sources of income, interests in real property, and investments and business positions in business entities located in or doing business in Yolo County.

Individuals or firms contracting with the Yolo County Local Agency Formation Commission for the provision of goods and services are not required to file statements of Economic Interests unless the Executive Officer of LAFCo determines in writing that the contractee has been hired to perform a range of duties that falls within the scope of 2 California Code of Regulations Section 18730 (c). Any such written determination shall include a description of the contractee's duties and, based upon that description, a statement of the extent of economic disclosure requirements. Such determination shall be a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code.

Statements of Economic Interests shall be filed with the Yolo County Local Agency Formation Commission.

2.0 COMMISSION MEETINGS [CHAPTER II - COMMISSION MEETINGS]

2.1 REGULAR MEETINGSThe regular meetings of the Yolo County Local Agency Formation Commission shall be held on the fourth Monday Thursday in every month except for May August and November where there will be no regular meeting, and on the second Monday first Thursday in the month of May December of each year. These regular meetings shall commence at the hour of 9:00 A.M., and shall be held in the Chambers of the Yolo County Board of Supervisors, 625 Court Street, Room 206, Woodland, California, or at the time and place as set and noticed by the Commission, Commission Chairman or the Executive Officer of the Commission. If any such meeting falls upon a holiday, the meeting shall be held on the next succeeding Monday, which

Yolo LAFCo


in not a holiday, in which event all hearings and other matters before the Commission are continued to the same specified hour of the next succeeding Monday, which is not a holiday.

2.2 SPECIAL MEETINGSAll other meetings of the Yolo County Local Agency Formation Commission shall be held as special meetings, at such times and places as are designated by the Commission, the Commission Chairman, or the Executive Officer of the Commission. Special meetings of the Commission may be called in the manner provided by State law. The order calling the special meeting shall specify the time and place of the meeting and the business to be transacted at such meeting, and no other business shall be considered at that meeting.

2.3 MEETING ADJOURNMENTAny regular, adjourned regular, special or adjourned special meeting of the Commission may be adjourned to any day and time prior to the date established for the next succeeding meeting of the Commission. It the date to which any such meeting is adjourned falls upon a holiday, the adjourned meeting shall be held on the next succeeding Monday, which is not a holiday, in which event all hearings and other matters before the Commission are continued to the same specified hour of the next succeeding Monday, which is not a holiday.

2.4 AGENDASThe business of each regular meeting of the Commission shall be transacted as much as possible in the following order:

1. Roll Call

2. Consideration of matters set for hearing

3. Consideration of special matters

2.5 MOTIONS AND ROLL CALLMotions made by any member of the Commission shall require a second. The roll need not be called in voting upon a motion except when requested by a member. If the roll is not called, in the absence of an objection, the Chairman may order the motion unanimously approved. When the roll is called on any motion, any member present who does not vote in an audible voice shall be recorded as "aye". Each roll call of the Commission shall be in alphabetical order, except that the Chairman shall be called last.

Yolo LAFCo


2.6 QUORUMA majority of the members of the Commission constitutes a quorum for the transaction of business. No act of the Commission shall be valid or binding unless a majority of all the members concur therein. In the absence of a quorum, the members present shall adjourn the meeting to any day and time prior to the date established for the next succeeding meeting of the Commission. If all members are absent, the Executive Officer of the Commission may adjourn the meeting to a stated time and place in accordance with Section 54955 of the Government Code.

2.7 CONTRIBUTION DISCLOSUREAll parties and participants in the proceedings shall disclose all contributions of $250 $50 or more, or per current Fair Political Practice Commission gift limits, in the preceding 12 months to any member or other officer of the Commission.

Consistent with Government Code 56300, the Yolo County LAFCo adopts the following procedures requiring and contributions disclosure.

1. On every agenda of the Yolo County LAFCo the following statement is printed:

"All parties and participants to a proceeding before this agency involving a license, permit or other entitlement for use are required to disclose on the record of the proceeding any contributions made within the preceding twelve (12) months which total $250 $50 or more by the party or participant, or his or her agent, to any officer of this agency.

"All persons present at this meeting who are parties to or participate in any annexation or detachment proceeding today, as well as any agents thereof, are hereby requested to disclose such contributions on the record of such proceeding at or before the commencement thereof."

2. As part of every Yolo County LAFCo application package a the attached disclosure form shall be (Exhibit A) is provided and participants are asked required to complete it in relation to their proposal.

3. Conflict of Interest statements are collected each year from each Yolo County LAFCoCommissioner and files are maintained for public access.

4. The Yolo LAFCo requires, consistent with the Fair Political Practices Commission, LAFComembers to report any contributions over $250 $50 by affected parties within the prior 12 months of the public hearing on a project. Once reported the member must either:

Yolo LAFCo


1) return the contribution to be able to vote on the item, or 2) not vote on the LAFCoproposal.

3.0 ELECTION, POWERS AND DUTIES OF CHAIRMAN AND CHAIRMANPRO TEM AND, CONDUCT OF MEETINGS MEMBERS [CHAPTER III]

3.1 ELECTION OF CHAIR At the regular meeting of the Commission held on the second Monday in the month of May each year, the members of the Commission shall elect, or re-elect, a Chairman to serve a one-year term, but in no event shall the term expire until his or her successor has been elected. Any vacancy in such office shall be filled by the Commission for the unexpired portion of the term of such office.

3.2 CHAIR CONDUCTThe Chairman, when present, shall preside at all meetings of the Commission and shall conduct the business of the Commission in the manner prescribed by these rules. The Chairman shall preserve order and decorum and shall decide all questions of order subject to the action of majority of the Commission.

3.3 ELECTION OF VICE-CHAIRAt the same meeting at which a Chairman is elected, the members of the Commission shall elect, or re-elect, a Vice-Chairman to serve a one year term, but in no event shall the term expire until his or her successor has been elected. Any vacancy in such office shall be filled by the Commission for the unexpired portion of the term of such office. In the absence of or the inability to act as the Chairman, the Vice-Chairman shall act as Chairman Pro Tem. The Chairman Pro Tem shall have all of the powers and duties of the Chairman during the absence of, or inability to act, of the Chairman.

3.4 VICE-CHAIR CONDUCTIn the absence of the Vice-Chair or the inability to act as the Chairman Pro Tem, the members of the Commission present shall, by an order entered in the Minutes, select one of their members to act as Chairman Pro Tem.

3.5 APPOINTMENT OF THE REGULAR PUBLIC MEMBER AND ALTERNATEWhenever a vacancy occurs, or may occur, in the positions of regular public member or alternate public member, as a result of resignation, death, termination or expiration of term of

Yolo LAFCo


office, or any other cause provided by law, it shall be the policy of the Local Agency Formation Commission to advertise that a vacancy exists or may exist in either or both of these positions and solicit all interested persons to apply for consideration as appointee(s). Final appointment to the vacant position(s) shall not be made for at least 40 days after an announcement of vacancy(ies) occur(s). The Yolo LAFCo may reappoint the incumbent at its pleasure.

3.6 CRITERIA FOR THE REGULAR PUBLIC MEMBER AND ALTERNATEThe applicants and successful candidate(s) shall meet the criteria set forth in the applicable provisions of the Government Code. [Section 30] No person appointed as a public member or alternate public member shall be an officer or employee of the county or any city or district with territory in the county (Government Code Section 56331). [Section 31] Both the regular and alternate public member of the Yolo County LAFCo shall be a registered voter in Yolo County.

3.7 PROCEDURES FOR APPOINTMENT OF THE REGULAR PUBLIC MEMBER AND ALTERNATEWhenever a vacancy occurs, or may occur, in either or both the positions of regular public member or alternate public member, as a result of resignation, death, termination or expiration of term of office, or any other cause provided by law,1 the Chair shall direct the Executive Officer to prepare and post a special vacancy notice advertising that such a vacancy(ies) currently exist(s) or may exist and solicit interested persons to submit their résumés for consideration to the Executive Officer within 30 days after the announcement of the vacancy occurs. The special vacancy notice shall be posted at the following locations:

1. At the LAFCo staff office, and

2. On the bulletin board outside the Board of Supervisors' hearing room, and

3. On the bulletin board outside the County Administration Building, and

4. Any other place as directed by the Commission.

The Executive Officer shall mail a copy of the special vacancy notice to all city clerks; to all independent special districts; and to the clerk of the Board of Supervisors.

1 In any Calendar year in which the term of office of the regular public member or alternate member is to expire, the Executive Officer will inform the commission at the first regular meeting in March that such expiration is effective the first Monday in May. The Commission may decide to advertise this fact in advance and encourage persons to submit their résumés for consideration prior to the expiration of the respective term. In such event, notice and selection will be in the manner specified in these procedures.

Yolo LAFCo


The Executive Officer shall have an announcement prepared and released to the press to the effect that a vacancy exists or may exist in either or both position(s) of regular public member or the alternate public member and all interested persons are encouraged to apply by submitting their résumés to the Commission's Executive Officer within 30 days after the announcement occurs.

30 days after the announcement occur(s), no further applications for the vacant position(s), shall be accepted by the Executive Officer, who then shall place on the agenda at the Commission's next regular scheduled meeting for discussion the consideration of these same applications for appointment to the vacant position(s).

The Commission may select a personnel committee from their membership for the purposes of reviewing all applications and nominating the best-qualified candidates for the Commission's consideration.

When a personnel committee is used for the purpose set forth in Section 37 of these procedures, then the personnel committee may recommend to the commission the name or names of applicants for nomination(s) to the vacant position(s) at the next regularly scheduled meeting. However, any eligible commissioner may nominate a candidate from the applications submitted.

Whenever a personnel committee is not used for the purpose set forth in Section 37 of these procedures, then any eligible commissioner may nominate a candidate from the applications submitted to the vacant position(s).

Upon receipt of the names of the nominees for consideration to the vacant position(s), the Chair shall declare the nominations closed and shall direct the Commission Clerk to call a vote of members eligible first for one candidate, then the other. The nominee(s) receiving a majority shall be appointed to the vacant position(s) for the un-expired term of the regular public member or alternate public member, except when the vacancy is the result of expiration of term of office, then the appointment shall be for four-years and until the appointment and qualification of his/her successor. The expiration date of the term of office of each member shall be the first Monday in May in the year in which his /her term is to expire.

In the event no candidate from the applicants submitted receives a majority, the Commission shall direct the Executive Officer to re-advertise that a vacancy(ies) exist(s) in the manner set forth in these procedures.

Final appointment to fill any vacancy in either the position of regular public member or alternate public member shall not be made by the Commission for at least 40 days after the announcement occurs.

Yolo LAFCo


Any other provision of this Policy notwithstanding, the Commission may, by a majority vote of its then-existing membership, waive any provision of this Policy as it deems necessary or appropriate in its sole discretion.

3.8 CALAFCo VOTING MEMBERThe most senior tenured regular commissioner at the CALAFCo conference will be the voting member at the appropriate session. If there are two of the regular commissioners present with the same tenure and both are most senior, the choice of who will be the voting member will be determined by who wins the toss of a coin.

4.0 LAFCo STAFF APPOINTMENT OF EXECUTIVE OFFICER, ASSISTANT EXECUTIVE OFFICER, COMMISSION CLERK AND LEGAL COUNSEL[CHAPTER IV]

4.1 EXECUTIVE OFFICERThe Commission shall appoint an Executive Officer who shall conduct and perform the day-to-day business of the Commission. The Executive Officer shall serve at the pleasure of the Commission. If the appointed Executive Officer has a conflict of interest on a matter before the Commission, the Commission shall appoint an alternate Executive Officer for that matter. The Executive Officer shall be the primary staff person to advise the Commission on actions to be taken pursuant to the Local Government Reorganization Act of 2000.

4.2 ASSISTANT EXECUTIVE OFFICERThe Executive Officer may appoint an Assistant Executive Officer. In accordance with Government Code Section 1190 et. seq., the Assistant Executive Officer shall be subordinate to and have the powers and duties of the Executive Officer. The Assistant Executive Officer shall also have the powers and duties of the Executive Officer whenever there is a vacancy in that office. The Assistant Executive Officer shall be responsible to work on special studies, sphere of influence studies, reorganization reports and other duties as designated by the Executive Officer.

4.3 COMMISSION CLERKThe Executive Officer may appoint the Clerk of the Commission. The Clerk shall prepare and distribute to Commission members and the newspapers of the County and post in the manner required by law, an agenda for each meeting which shall include all matters which have previously been set for hearing at such meeting; shall keep minutes of all meetings; shall

Yolo LAFCo


provide Commission members with a copy of the minutes prior to the next succeeding meeting; shall maintain a record of all proceedings; shall make all public notices; and shall receive all matters or information to be filed for action by the Commission. The Clerk shall also insure that, at a minimum, notice of all public hearings for the Commission shall be available in electronic format on the Commission web site. The Clerk shall also be responsible for other duties as required and assigned by the Executive Officer to maintain the office of the Commission.

4.4 LEGAL COUNSELThe Commission shall appoint legal counsel to advise it. If the appointed legal counsel has a conflict of interest on a matter before the Commission, the Commission shall appoint an alternate legal counsel for that matter. Legal counsel shall provide the Executive Officer and Commission necessary legal advice as necessary on any matter before the Commission or business of the Commission.

5.0 BUDGET AND FINANCIAL OPERATIONS

5.1 AUTHORITY TO DEVELOP AND ADOPT THE BUDGETEach year, following noticed public hearings, the Commission adopts proposed and final budgets. In accordance with the CKH Act, the proposed budget must be adopted by May 1 and the final budget by June 15. The budget is based on a July 1 to June 30 fiscal year.

The County Auditor is responsible for apportioning the Commission’s net operating costs to the County and the cities according to a formula established pursuant to Government Code Section 56381.

If the County or a city does not remit its required payment within 60 days, the Executive Officer shall request that the County Auditor collect an equivalent amount from the property tax, or any fee or eligible revenue owed to that county or city pursuant to §56381(4)(c).

5.2 CITY/COUNTY APPORTIONMENTIn accordance with the CKH Act, the cities and County split the cost of LAFCo funding 50/50. A formula for the split of the cities’ share is outlined in Government Code Section 56381 (b)(1); which would be in proportion to a city’s tax revenue or an alternative method approved by a majority of the cities. Beginning in FY 2007-08, the cities of Yolo County have developed an alternative formula to apportion their 50% of LAFCo funding by averaging a city’s general tax revenue (per the latest State Controller’s Cities Annual Report) and population (per the latest Department of Finance Projections).

Yolo LAFCo


5.3 ANNUAL WORK PLANBefore May 1, the LAFCo Executive Officer shall prepare for the Commission’s review and approval an annual work plan. The work plan is prepared in conjunction with the annual budget. The work plan identifies the purposes and programs of State law and local policy, including requirements for service reviews, sphere of influence updates and other mandated functions. The work plan will correspond to the adopted fiscal year budget.

5.4 PREPARATION AND ADMINISTRATIONThe LAFCo Executive Officer shall serve as the budget administrator, to prepare, present, transmit, review, execute and maintain the LAFCo budget consistent with State law. The Executive Officer shall provide the Commission with periodic budget updates comparing expenditures to the adopted budget.

5.5 LAFCo AS A SEPARATE FUND For administrative purposes, the LAFCo budget is a separate fund within the County’s financial accounting system. Unspent appropriations are retained in the fund as available financing for the following year.

5.6 BUDGET ADJUSTMENTSThe Commission may make adjustments to its budget at any time during the fiscal year, as it deems appropriate.

5.7 CONTINGENCY RESERVEThe annual budget shall include a contingency reserve (i.e., 20% of budget) as determined by the Commission. Funds budgeted in the contingency reserve shall not be used or transferred to any other expense account without prior approval of the Commission.

5.8 EXPENDITURES AND DISBURSEMENTSYolo County currently administers LAFCo’s cash and investments. The Commission Clerk and Executive Officer shall follow adopted policies and procedures for invoices, claims, disbursements, receipts and deposits of revenues. The Commission Clerk shall initiate transactions such as purchase orders and payment of invoices and claims.

The Executive Officer shall review all claims and invoices received by LAFCo and may authorize payment, as appropriate, within the framework and limitations of the budget as

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adopted by the Commission. The Commission Clerk and Executive Officer shall maintain and reconcile records of all financial transactions.

The primary objectives for accounts payable and cash disbursements are to ensure disbursements are properly authorized, invoices are processed in a timely manner, and invoice charges do not exceed the purchase order or contract amount. Purchases shall be made in accordance with the Yolo County purchasing policies and procedures.

Periodic financial updates and budget reports shall be presented to the Commission.

5.9 PAYROLL AND BENEFITS ADMINISTRATIONYolo County currently administers payroll and benefits for LAFCo.

5.10 FIXED ASSETSCapital assets include furniture, fixtures and equipment with a useful life of three or more years and a value of $5,000 or more. Capital assets owned by LAFCo are accounted for at their historical cost, or estimated historical cost, if actual cost is not available. LAFCo will maintain an inventory of capital assets and will be maintained by staff on a periodic basis. In the event a capital asset is sold, scrapped, donated or stolen, adjustments will be made to the capital asset inventory.

Capital assets are depreciated using the straight line method over the estimated useful life. Estimated useful lives of fixed assets shall be determined by the Executive Officer in consultation with the County Auditor and in accordance with standard accounting policies and procedures. Furniture and fixtures will typically be assigned a useful life of up to 10 years and most office equipment (including computers) will be assigned a useful life of 3-5 years and leased assets will be designated “life of lease”. Repair to capitalized assets do not materially add to the value of the asset or prolong its estimated useful life.

5.11 CONTRACT APPROVAL AND EXECUTIONThe Commission delegates to the Executive Officer the authority to approve and execute contracts, agreements and amendments for $5,000 or less, provided sufficient funds are contained in the appropriate line item in the LAFCo budget.

Any contract, agreement or amendment greater than $5,000, or any contract agreement or amendment for which there are not sufficient funds contained in the appropriate line item of the LAFCo budget, shall be presented to the Commission for approval and execution.

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For other policies including, but not limited to, pricing and contractual solicitations and contract documents, LAFCo defers to the County of Yolo Contracting and Purchasing Polices.

5.12 FRAUD POLICYIt is the policy of the Yolo LAFCo to follow ethical, responsible, and reasonable procedures related to purchasing, claims, money management and other financial matters. Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of personal gain or for the purpose of inducing another to act upon it to his or her injury. Each LAFCo employee and Commissioner should be familiar with the types of improprieties that might occur within his or her area of responsibility, and be alert for any indication of irregularity.

Any fraud that is suspected or detected shall be reported to the Chair of the Commission and,alternatively, to the Executive Officer. The terms fraud, defalcation, misappropriation and other fiscal irregularities refer, but are not limited, to:

1. Any dishonest or fraudulent act

2. Forgery or alteration of any document or account belonging to LAFCo

3. Forgery or alteration of a check, bank draft, or any other financial document

4. Misappropriation of funds, securities, supplies, equipment, or other assets of LAFCo

5. Impropriety in the handling or reporting of money or financial transactions

6. Disclosing confidential or proprietary information to outside parties

7. Accepting or seeking anything of material value from contractors, vendors, or persons providing goods or services to LAFCo

8. Destruction, removal or inappropriate use of records, furniture, fixtures and equipment

9. Any similar or related irregularity

10. Personal use of the County purchasing card

Responsibility for investigating suspected fraudulent acts as defined in the policy is dependent upon the suspected fraudulent act, and may be conducted by the Executive Officer, County Auditor, LAFCo Legal Counsel, and/or other internal or external party as necessary to conduct an investigation. If an investigation substantiates that fraudulent activity has occurred, the

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investigating authority will issue a report to the appropriate party (i.e., Executive Officer, LAFCo Legal Counsel, Commission Chair, etc.). Further action will be taken in conjunction with the appropriate parties.

Investigation results are confidential and will not be disclosed or discussed with anyone other than those who have a legitimate need to know. This is important in order to avoid damaging the reputations of persons who may be suspected, but subsequently found innocent of wrongful conduct and to protect LAFCo from potential civil liability,

5.13 FEES LAFCo shall establish a fee schedule for the costs of proceedings pursuant to state law. LAFCogenerally will review its fee schedule at least every two years. Payment of all fees pursuant to the most recent fee schedule is required for any application to be deemed complete and before issuing a certificate of filing. The Commission may waive fees as provided in state law.

The costs for legal defense of a LAFCo action are considered part of the processing fees. A fully executed indemnification agreement, as approved by LAFCo Legal Counsel, shall be required for any application approved by the Commission and before a certificate of completion is issued.

5.14 FINANCIAL STATUS REPORTSThe budget adopted by LAFCo is an estimate of expenditures and revenues. The staff keeps the Commission informed of aspects of the financial program that deserve review and adjustment through periodic financial status reports.

5.15 REIMBURSEMENT OF COMMISSIONER EXPENSES Commission members and alternates may claim reimbursement for reasonable and necessary expenses incurred in attending LAFCo sponsored or related events and in performing the duties of their office. The Executive Officer is responsible for reviewing and approving each request for Commission reimbursement.

5.16 REIMBURSEMENT OF STAFF AND LEGAL COUNSEL EXPENSESThe Executive Officer, Legal Counsel and other LAFCo staff shall be reimbursed for all reasonable and necessary expenses in connection with the conduct of LAFCo business including but not limited to office expenses, training, travel, lodging, meals, gratuities and other related costs. The Executive Officer is responsible for reviewing and approving requests

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for reimbursement. LAFCo reimbursements shall be periodically reported to the Commission to provide an additional layer of review for any irregularities.

5.17 REIMBURSEMENT POLICIESExpense reimbursement requests should be submitted monthly, although flexibility is permitted if the claimable amount is not deemed to be significant. Expense claims for costs incurred in one fiscal year should be, whenever practical, submitted for reimbursement during the same fiscal year.

Claims for reimbursement of costs related to LAFCo meetings, conferences and seminars should be submitted not later than 60 days following completion of the event for which reimbursement is being claimed. Reimbursement for meals in conjunction with attendance at conferences and workshops shall not exceed the established IRS thresholds for the County where attendance occurred. Alcoholic beverages are not reimbursed. Cancellation of attendance at CALAFCo conferences and workshops shall be made in accordance with CALAFCo cancellation policies.

Use of private automobiles to conduct LAFCo business shall be reimbursed at the current IRS allowable rate. This rate shall be considered full and complete payment for actual expenses for use of private automobiles, including insurance, maintenance and all other automobile-related costs. LAFCo does not provide insurance for private automobiles used for LAFCobusiness. The owner is responsible for personal liability and property damage insurance when vehicles are used on LAFCo business.

Receipts or vouchers that verify the claimed expenses are required for reimbursement of all items of expense except private automobile mileage and taxis or streetcars, buses, bridge and road tolls and parking fees. Reimbursement of expenses is not allowed for personal items such as, but not limited to, entertainment, clothing, laundering, etc. The general rule for selecting a mode of transportation for reimbursement is that method which represents the lowest reasonable expense to LAFCo and the individual Commissioner or staff member.

Date post:	13-Oct-2020
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