March 4, 2020 Staff Report 5.2 Sonoma County Fire District Reorganization No. 2019-04 (Bodega Bay FPD and Russian River FPD)

Analysis

Background  

The Sonoma County Fire District provides fire and emergency services to a large portion of the central Sonoma County area designated as Region 7 by fire service agencies.

The District has primary responsibility for serving territory surrounding the City of Santa Rosa, including the Town of Windsor to the north, the Mountain and Rincon Valley areas to the northwest, the Bennett Valley area to the south, and unincorporated territory to the east of Santa Rosa. An illustrative map of the District territory and the subject agencies is attached (Attachment 1).

Sonoma County Fire is the agency that was created through a reorganization of four fire and emergency service agencies in 2019: the Windsor, Bennet Valley, and Rincon Valley Fire Protection Districts, and a portion of County Service Area 40 territory that was served by the Mountain Volunteer Fire Department.

The District has submitted an application by resolution for a reorganization consisting of dissolution and subsequent annexation of the Bodega Bay and Russian River Fire Protection Districts.

The Commission adopted a Municipal Service Review and Sphere of Influence Study (“MSR”) for the District in December 2019 that included addition of the affected territories to the District’s Sphere of Influence, making the territories eligible for annexation to the District.

Reason for Request; History

The Sonoma County Fire District was recently formed through a reorganization of four fire and emergency service agencies, and continues to explore opportunities to provide services through contracts or further reorganizations beyond its current boundaries in central Sonoma County.

In early 2019, the District was asked to provide leadership, management, and administrative services under contract to the Russian River Fire Protection District, which provides services to Guerneville and Rio Nido in the central portion of the Russian River area.

Subsequently, the board of Russian River FPD entered into discussions with Sonoma County FD to reorganize, and came to agreement.

Although Sonoma County FD has not provided services to the Bodega Bay Fire Protection District, Bodega Bay has sought potential partnership arrangements with agencies within Regions 4, 5, and 8 (northern Sonoma coast, Russian River area, and the Region surrounding Sebastopol).

While a variety of regional partnerships may make sense for Bodega Bay Fire Protection District, the financial sustainability of the District has become a difficult circumstance to overcome.

Sonoma County Fire District is now seeking a reorganization that includes the dissolution of the Russian River and Bodega Bay Fire Protection Districts, and subsequent annexation of those territories into Sonoma County FD.

Sonoma County FD notes that both agencies are willing partners in a regionalization effort. Additionally, a key goal for Sonoma County FD is to act as a provider of advanced life support/paramedic and ambulance transport services, which both agencies provide.  Sonoma County FD believes that public agencies should provide these services, and is potentially preparing to bid for the Emergency Medical Service contract that the County administers for the central region of the County.

The reorganization of the Russian River Fire Protection District into Sonoma County Fire is financially sustainable through the imposition of Sonoma County’s parcel tax structure on the territory; no additional financial contribution from the County has been sought.

As discussed below, the financial condition of the Bodega Bay Fire Protection District has required continued financial contributions from the County; if a long term contractual financing arrangement can be secured, Sonoma County Fire District is willing to include Bodega Bay in the proposed reorganization.

District-County Property Tax Allocation Agreement

Russian River

Sonoma County FD is not seeking financial support from the County to take on service provision in the Russian River FPD territory, but rather will be relying on existing property tax revenue and application of Sonoma County FD’s parcel tax structure on the area.

The District indicates that these revenues will be sufficient to maintain service levels, in part due to the absorption of the leadership and administrative structure of Russian River FPD into Sonoma County FD. (Sonoma County FD will likely seek County support if future reorganizations involving CSA 40 territories are contemplated.)

Bodega Bay FPD

Sonoma County FD entered into negotiations with the County of Sonoma, seeking a tax allocation agreement or other financial agreement that would provide dedicated property tax and/or other revenue to the District for provision of service to the Bodega Bay FPD territory. That negotiation has not borne fruit as of the composition of this report.

Sonoma County FD is seeking financial support from the County for a variety of reasons:  

• To address a “structural” revenue deficit at Bodega Bay FPD. The District is rapidly depleting reserve funds in order to pay for staffing levels, and has no reserves available for scheduled equipment replacements. The County has provided annual funding supplements to Bodega Bay on a provisional basis to support the District.
• To “backfill” a reduction in parcel tax revenue. Bodega Bay FPD has a very high parcel tax rate schedule, with typical single-family homes assessed $524 annually. Under Sonoma County Fire’s schedule, a typical single-family home is assessed $185 annually.
• The majority of service calls in the Bodega Bay territory are from transients rather than residents; the applicant contends that County financial support is necessary to serve this need.
• Bodega Bay FPD services include advanced life support/paramedic and ambulance transport capabilities not only within its territory but to three County Service Area 40 territories to the south. Presently, Bodega Bay FPD does not receive funding that explicitly is directed to this service provision from the County, or from property owners in the form of parcel tax assessments in these areas.  

Sonoma County FD has filed an amendment to their application requesting that a reorganization including Bodega Bay FPD be conditionally approved on securing a tax allocation and/or other financial agreement with the County on or before April 14, 2020.

Governance

Concern has been expressed by both the boards of directors at Russian River and Bodega Bay Fire Protection District regarding governance of Sonoma County FD after the reorganization, specifically with regard to board composition. (The population of registered voters within the existing boundaries of Sonoma County FD dwarf the populations within the subject territories.)

Sonoma County FD has agreed to migrate to a district election system whereby board directors will be elected from within specific geographical districts. The District has requested that approval of all or any portion of this proposed reorganization be conditioned on a migration to district voting beginning in 2022.

District Actions

The board of directors of Sonoma County Fire District initiated proceedings with LAFCO, by resolution, for reorganization of the Russian River Fire Protection District on August 20, 2019. This resolution was concurrently executed with the board of the Russian River Fire Protection District.

The board of directors of Sonoma County Fire District initiated proceedings with LAFCO, by resolution, for reorganization of the Bodega Bay Fire Protection District on December 4, 2019. This resolution was concurrently executed with the board of the Bodega Bay Fire Protection District.

(Both resolutions are included as Attachment 2).

Prior Commission Action

For territory to be eligible for annexation to a district, it must be within the agency’s sphere of influence.

Staff completed a Municipal Service Review for West County Fire and Emergency Service Agencies, which the Commission adopted in June 2019.

In December of 2019, staff presented a proposed sphere of influence amendment for Sonoma County Fire District, extending the sphere over almost the entirety of nine of the agencies in West County. The Commission elected to amend the sphere to include only the Bodega Bay and Russian River FPD territories.

Environmental Review

As the lead agency for the proposal, the District found that the proposed reorganization is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15320 of the State CEQA Guidelines because the proposed action does not change the geographical area in which previously existing powers are exercised..

The District also found that the proposal was exempt from CEQA under State CEQA Guidelines Section 15061 (b)(3), the “general rule” exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The change in fire and emergency services provider will not cause a significant effect on the environment.

Staff agrees with the District’s findings regarding the exemptions.

Individual Factors for Consideration

California Government Code section 56668 describes sixteen factors to be considered in the Commission’s review of an annexation proposal. The review must include, but is not limited to, consideration of these factors. The factors are outlined and addressed in Attachment 3.

Need for Public Hearings: Merits and Protest

As indicated earlier in this report, Sonoma County FD initiated the proceedings with the Commission by resolution. In a situation in which it is clear that not all owners of property within the affected territory or all registered voters residing within the annexation boundary have given their written consent to the proposal, state law requires the Commission to conduct a public hearing on the merits of the proposal.

Notice of this public hearing, in English and Spanish, was issued on January 29, 2020. Because of the number of registered voters within the affected territories, notice was provided through placements in the West County Times and the Press Democrat.

Should the Commission approve the reorganization proposal, Staff recommends that a protest proceeding be scheduled commencing on March 12 and concluding at the Commission’s May 6, 2020, meeting. To provide public notice for the protest proceeding, staff will publish notices in the same fashion as for this hearing, and additionally will mail notices to all landowners within the affected territories.

Recommendation 

Staff requests that the Commission conduct a public hearing on the Sonoma County Fire District’s proposal to dissolve the Russian River and Bodega Bay Fire Prtection Districts, and to annex those territories.  

Staff recommends the following, subsequent to the Commission’s deliberations:  

1. Approve the reorganization, pursuant to the following findings and determinations:
   • The affected territories are within the Sonoma County Fire District’s sphere of influence, making it eligible for annexation.
   • The reason for the reorganization is to allow residents of the affected territories to directly receive the full range of services provided by the District.
   • The Municipal Service Review conducted for West County Fire and Emergency Services Agencies, and the subsequent Sphere of Influence Study, reflects the District’s ability to serve the affected territory.
   • The District has not executed a tax exchange or other financial agreement with the County of Sonoma that will provide sufficient funding for the District to serve the Bodega Bay Fire Protection District territory, so approval of that portion of the reorganization proposal will be made contingent upon securing an agreement by April 14, 2020.
   • Existing property tax revenue, and parcel tax revenues raised using Sonoma County Fire District’s rate schedule, will be sufficient to provide and maintain services with the Russian River Fire Protection District territory. 
   • Governance of the reorganized agency will be migrated to a district election model beginning in 2022.
2. Pursuant to the State CEQA Guidelines, find that the proposal is categorically exempt to CEQA, under Section 15320, or, if the proposal could be considered to be a project, find it exempt pursuant to Section 15061(b)(3) the State CEQA Guidelines.
3. Set a protest period beginning on March 12, 2020 and ending at the conclusion of a protest proceeding at the Commission’s regularly-scheduled meeting on May 6, 2020.  

Staff has prepared a draft resolution for the Commission’s review and consideration (Attachment 4).

Alternate Recommendation 

None

Attachments 

1. Illustrative map of proposed reorganization
2. District Action – Resolution of Application
3. Factors for Consideration
4. Draft Resolution