THE MOTION WAS MADE (Shelton/Curless) to approve the Minutes from the January 25, 2006 meeting.

THE MOTION PASSED BY A VOTE OF 5-0-2. ((Neely & Rodoni abstained)

Kirk Gothier reviewed the draft budget explaining some dimensions of the increase over last year's budget. The Progress Report scheduled as New Business Item B was also discussed. It was noted that the AB 1746 deadline for updating spheres of influence was extended to January 1, 2008. Supplemental documents were received from the Assessor's office, which included an estimate of allocation of LAFCO Expenditures for the proposed budget for fiscal year 2006-07.

Kirk Girard explained the relationship between the proposed LAFCO budget and the Prop 50 grant-funded infrastructure planning work. While the role of LAFCo is seen by the State as a sprawl prevention device, in Humboldt County's case this Commission can also be seen as supporting well planned development. He explained that the weak response to the MSR data collection requests has been, in part, due to the lack of expertise and resources of local agencies. Because time is running out and data is needed for the General Plan update infrastructure element requested by the Board of Supervisors, the budget has been increased to make a concerted effort to retrieve and compile the data using a consultant.

The Commission and staff discussed the increased cost for professional services, how the increase would dovetail with the General Plan update, and how the increase will be spread to all districts.

Larry Oetker, City of Arcata Deputy Director of Redevelopment, explained the City has service agreements with entities outside its Sphere of Influence and hoped these wouldn't be affected by the General Plan Update. The professional fee increase should be spread over two years rather than one. The City Council would like to hear from the County Planning Department, and efforts to develop the infrastructure element of the General Plan Update should be coordinated.

Tom Marking, McKinleyville Community Services District General Manager, noted the discrepancies between the Service District's plan and the County plan for housing density.

The Commission and staff discussed the professional and administrative services increase versus the cost estimate to individual districts provided by the Assessor's office. If the Commission wanted to distribute the costs by another formula (i.e. the direct approach), a new agreement with each District is necessary. The timeline between the General Plan EIR certification and the districts needing to coordinate with the EIR was discussed. Staff explained the two-year budget spike. The first-year increase would be larger than the second year because the second year would wrap up any district MSRs not yet completed. Commissioner McKenny stressed the district boards need to be involved with the data retrieval process, and the need to hire adequate LAFCO staffing to complete the MSR work.

The Commission agreed additional funds needed to be added to the proposed budget for expected costs for the future Rio Dell/Scotia proposal and for labor to get the State MSR mandate done on time. The Commission asked staff to prepare a review report on which districts will not be changing their Sphere of Influence and which districts need to be done without involving the EIR.

THE MOTION WAS MADE (Neely/McKenny) to direct staff to prepare a proposed final budget for the Commission consideration at the public hearing on May 24, 2006 which includes $5,000 for to be set aside for anticipated costs regarding the Rio Dell/Scotia annexation and includes a work plan with adequate LAFCO staffing to complete the proposed work program for fiscal year 2006-07, including Municipal Service Review reports and Sphere of influence updates not involving the preparation of an EIR.

THE MOTION PASSED BY THE VOTE 7-0

A. Process for Appointment of City, District and Public LAFCo Members.

Kirk Gothier explained the selection process for LAFCo members and asked for volunteers to fill a three-member panel to review the submitted applications for the Alternate Public Member vacancy.

Commissioners Leonard and Curless volunteered along with Supervisor Neely who will coordinate the interviews.

BY ORDER OF THE CHAIR, the interview panel (Leonard, Curless & Neely) will review the submitted applications, interview candidates and prepare recommendations to this Commission for the May 26, 2006 meeting.

Referenced in Public Hearing Item A.

BY ORDER OF THE CHAIR, the budget and progress report was received and filed.

No one appeared before the Commission.