Local Agency Formation Commission › Meetings & Agendas › 4.4 Staff Report February 6 2019

5.1 Staff Report

Lafco

Meeting Date:	February 6, 2019
Agenda No.:	Item 4.4
Agenda Item Title:	File No. 2018-16: Windsor Fire Protection District Reorganization No. 18-01 (Windsor FPD)
File No:	2018-16
Applicants	Windsor Fire Protection District, Bennett Valley Fire Protection District, Rincon Valley Fire Protection District, Sonoma County Board of Supervisors behalf of the Mountain Volunteer Fire Company, County Service Area No. 40 (Fire Services)
Proposal	Request for reorganization involving dissolution of the Rincon Valley and Bennett Valley Fire Protection Districts, detachment of territory from County Service Area 40 (Fire Services), and annexation of those territories to the Windsor Fire Protection District.
Environmental Determination:	Exempt from CEQA, pursuant to Sections 15061(b)(3) and 15320 of the State CEQA Guidelines
Staff Contacts:	Mark Bramfitt and Carole Cooper

Analysis

Background

The boards of directors of the Windsor Fire Protection District (Windsor FPD or District), Bennett Valley Fire Protection District (Bennett Valley FPD), and Rincon Valley Fire Protection District (Rincon Valley FPD), and the Sonoma County Board of Supervisors, as the board of directors of County Service Area 40 (Fire Services) (CSA 40), have submitted a concurrent resolution of application for a reorganization involving dissolution of the Bennett Valley and Rincon Valley FPDs, detachment of the Mountain Volunteer Fire Company-served area of CSA 40 (Mountain VFC), and annexation of all those territories to the Windsor FPD. (See Attachment 1 for the concurrent resolution.)

A map showing the agencies that are the subject of the proposed action and their respective territories is attached (Attachment 2).

The proposed reorganization is enabled by a Municipal Service Review, a set of sphere of influence amendments, and a reorganization that have been adopted by the Commission previously or considered and potentially adopted at the meeting today:

The Commission considered and accepted a Municipal Service Review and Sphere of Influence Study for the Windsor, Bennett Valley, and Rincon Valley FPDs and the Mountain VFC that provide fire and emergency services in central Sonoma County, in September 2018. Broadly, the sphere of influence of the Windsor FPD was extended to cover the territories of the other three agencies as they stood at that time.
At the Commission meeting today, the Commission was asked to amend the sphere of influence of the Rincon Valley FPD to include two islands of territory (Remainder Areas) that constituted the Roseland Fire Protection District (Roseland FPD) subsequent to the 2017 Roseland Area Annexation through which most of the Roseland FPD’s territory came under the City of Santa Rosa’s jurisdiction.
The subject action presupposes the Commission’s adoption of an amendment to the Rincon Valley FPD sphere of influence and consideration of the Roseland FPD’s resolution of application for a reorganization involving its dissolution and annexation of the Remainder Areas to the Rincon Valley FPD, whose territory is adjacent, as an interim step in a larger reorganization effort.
The subject action also presupposes that the Commission adopted a further sphere of influence amendment for the Windsor FPD, adding the Remainder Areas, noted above, as well as three Integrated Response Plan areas (IRPs) of CSA 40, thus making these territories eligible for annexation to the District.

The subject action is the fourth in a series of four actions requested of the Commission on this date: review and consideration of a reorganization of the Windsor FPD. Approval of this proposed reorganization involves dissolution of the Bennett Valley and Rincon Valley FPDs, detachment of territory from CSA 40, and annexation of all those territories to the Windsor FPD.

Staff has provided public notice of the proposed reorganization of the Windsor FPD and requests that the Commission conduct a public hearing to seek input, followed by review and consideration of the proposed reorganization and approval of staff’s recommendation.

Reorganization of the Windsor FPD

The Windsor Fire Protection District, in partnership with the three other agencies affected by the proposed reorganization, has developed a plan for services (Plan) for the large proposed reorganization area in central Sonoma County, generally surrounding the City of Santa Rosa (City).

The Plan includes placing all operations under a new leadership and administrative structure and addressing service needs in key locations. A portion of the proposed Plan is attached (Attachment 3) and provides, for Commissioners’ information, the following:

A history of the affected fire protection agencies
A plan and description of services
A schedule for providing services to the reorganized territory
An assessment of facilities
A fiscal analysis projected for five years
A proposed organizational chart
A proposed structure for the board of directors
A description of the impacts of reorganization on current staff

Staff’s review of the application material found it consistent with the findings of the Municipal Service Review conducted in 2018, with sufficient detailed planning to indicate that a reorganized district (Reorganized District) will have the ability to provide the proposed level of services, with projected financial viability.

Service Levels

The application proposes that the Reorganized District would maintain services that are at risk and provide higher levels of service in some areas. In particular, “3/0” staffing is proposed at two Windsor, two Rincon Valley, and one Bennett Valley fire stations. Staffing at this level includes a captain, engineer, and firefighter providing coverage 24 hours per day.

Windsor FPD is currently at risk of losing the ability to staff at a “3/0” level due to the sunset of a funding grant. Bennett Valley FPD has “3/0” staffing only during day shifts, with “2/0” for the balance. Staffing at the third of four Rincon Valley FPD stations (the fourth is unmanned) will remain at a “2/0” level. A stipend-paid volunteer firefighter to staff a revamped Mountain VFD facility during weekday day shifts is proposed, and possible staffing during high-hazard conditions is being considered.

Facilities

In its Plan for Services, the District has preliminarily identified station upgrade and replacement needs, of which providing suitable staffing quarters at the Mountain VFD station is the only near-term project. The District is considering partnering with the City for upgrade or replacement projects for Rincon Valley FPD facilities.

CSA 40 Areas

As indicated above in a prior action today, the instant proposal presupposes that the Commission approved an amendment to the Windsor FPD sphere of influence to include the Remainder Areas left from the Roseland FPD in the Roseland Area Annexation in 2017 and three IRP areas of CSA 40.

The description of these territories and the reasons for their inclusion in the Windsor FPD sphere were detailed in Agenda Item 4.3. Inclusion in the Windsor FPD sphere makes them eligible for annexation to the District, for the reasons described in that report.

Such action makes practical and organizational sense in that the areas are surrounded by or adjacent to the other fire agencies that are the subject of this proposal. Importantly, the Windsor FPD has indicated that it can serve the areas.

Financial Impacts

To ensure financial viability of the Reorganized District, the agency is seeking funding from several sources:

The Windsor FPD, Bennett FPD, and Rincon Valley FPD have negotiated a tax exchange agreement with the County of Sonoma, which will assign property taxes from CSA 40 territories to the Windsor FPD at a significantly increased rate. Ongoing payments to Windsor FPD are expected to approximate $1,600,000 based on current property value assessments. This acknowledges the need for staffing support within the area served by the Mountain VFC and for services to the IRP Areas and the need to maintain or augment staffing within the three FPD areas. Additionally, the County will provide a one-time payment to the District of $500,000 to support the construction of a station in the Mountain VFC territory. The Board of Supervisors approved the tax exchange agreement at its January 29, 2019, meeting. The agreement is attached, for Commissioners’ information (Attachment 4).
The District has undertaken discussions with the Town of Windsor (Town) regarding financial support. The property tax allocation rate for the District on average is very low (3.37%) compared to the average rate for fire protection districts in the County (7.89%). Although the Town represents only a portion of the Windsor FPD’s territory, the District would clearly benefit from financial contributions from the Town in the form of an adjusted property tax allocation.
As noted previously in the Municipal Service Review for the four subject agencies approved in 2018, pursuant to state law, the Reorganized District will extend to the annexed territories special taxes previously authorized by the Windsor FPD.
Windsor FPD has two special taxes: a fixed-rate parcel tax and a parcel tax based on “units of risk.” Units of risk are determined based on the type of structure/development on a site, size, and other factors. Generally speaking, a single-family home in Windsor FPD is assessed an annual parcel tax on the order of $180.
Both the Rincon Valley and Bennett Valley FPDs also assess special taxes. Rincon Valley’s is a flat $36 per year; Bennett Valley’s is based on units of risk, with a typical single-family home assessed about $185 per year. (Landowners in the Rincon Valley and Bennett Valley FPDs and in CSA 40 had also been assessed an annual fee by the State for fire protection; that fee has been rescinded.)
The CSA 40 service areas are not presently assessed special taxes.

In combination, these sources and potential sources of additional revenue are sufficient to fund the planned level of services that the Reorganized District has identified to meet the needs of the communities in the central region of the County.

Board Composition

The District has proposed composition of a board of directors consisting of three members each from the existing Windsor FPD and Rincon Valley FPD boards and one member from the Bennett Valley FPD board. Should the Commission approve the reorganization and absent a sufficient protest, board members will be allotted two- or four-year terms, with all future elections on a District-wide basis. The District would maintain a seven-member board of directors.

District Name

The concurrent resolution of application proposed that the Reorganized District be named the “Sonoma County Fire Protection District.” Staff supports this request. Although the Commission could condition its approval of the reorganization with a different name, staff notes that districts have latitude, on their own, to change their name by resolution, with appropriate filing with the State.

Environmental Determination

The reorganization is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to section 15320 of the State CEQA Guidelines (Changes in Organization of Local Agencies). A proposal can be found exempt where changes do not change the geographical area in which previously existing powers are exercised.

The subject reorganization is further exempt under State CEQA Guidelines Section 15061(b)(3). This general rule exemption states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Staff notes that, instead of fire and emergency services being provided by the Bennett Valley and Rincon Valley FPDs and the Mountain VFC and agencies under contract to CSA 40 in IRPs, the only change as a result of the subject reorganization would be that the Reorganized District would be designated to serve the entirety. No change in the environment is anticipated from this action.

Individual Factors for Consideration

California Government Code section 56668 describes seventeen factors to be considered in the Commission’s review of a proposal. The review must include, but is not limited to, these factors. The factors are outlined and addressed in Attachment 5.

Need for Public Hearings: Merits and Protest

As indicated above, the subject application was submitted to Sonoma LAFCO by a concurrent resolution from the boards of directors of the Windsor FPD, Bennett Valley FPD, and Rincon Valley FPD and the Sonoma County Board of Supervisors, as the board of directors of CSA 40.

Typically, when applications are received in this manner, state law requires the Commission to approve a reorganization and also allows such action to be taken without notice and hearing unless a subject agency demands it.

However, because the proposed action includes additional territory not named in the concurrent resolution, i.e., the Remainder Areas and the IRP Areas, staff determined that the Commission should review and consider the overall proposal pursuant to a noticed public hearing. The public also has more opportunity to be heard as a result.

A one-eighth page notice was published in the Press-Democrat, pursuant to state law, and notice of the public hearing was posted at the County offices and provided to affected agencies. The notice was also posted on the Sonoma LAFCO website along with a Question and Answer narrative for the public. The notices alerted owners of property that are proposed to be annexed to the Windsor FPD that they would be subject to a parcel tax previously-authorized by the Windsor FPD, based on units of risk.

Should the Commission approve the action, pursuant to state law, the Commission will conduct a protest proceeding allowing owners of property and registered voters residing within the affected territory the opportunity to protest the action. LAFCO will provide mailed notice of the right to protest to each landowner.

Conclusion

The affected agencies have proposed the subject reorganization to promote the efficient and effective provision of fire and emergency services by a single, combined entity, with improvements in service and more sustainable finances, to a broad area in the central portion of Sonoma County.

If the Commission approves the proposed reorganization, landowners and voters will subsequently have the opportunity to formally protest the action.

Recommendation

Staff requests that the Commission conduct a public hearing on the request from the boards of directors of the Windsor FPD, Bennett Valley FPD, and Rincon Valley FPD and the Sonoma County Board of Supervisors, as the board of directors of CSA 40, for a reorganization involving dissolution of the Bennett Valley FPD and the Rincon Valley FPD, detachment of the IRP Areas and the territory served by the Mountain VFC from County Service Area 40 (Fire Services), and annexation of the territories to Windsor FPD.

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

Adopt a resolution approving the reorganization, pursuant to the following findings and determinations:
1. The Commission accepted a Municipal Service Review and Sphere of Influence Study for the Windsor FPR, Bennett Valley FPD, Rincon Valley FPD and the Mountain VFC service area of CSA 40 in 2018. As a result, the Windsor FPD sphere of influence was amended to include all the territory in the two districts and that portion of CSA 40.
2. The affected agencies – Windsor FPD, Bennett Valley FPD, Rincon Valley FPD and CSA 40 – initiated proceedings for reorganization of the agencies, to achieve greater economy and efficiency in providing fire protection and emergency services to a broad area of the central portion of Sonoma County. c. The Remainder Areas of the Roseland FPD and three IRP Areas of CSA 40 are located adjacent to the boundaries of the subject fire protection agencies. Their inclusion within the sphere of influence of the Windsor FPD, which action this action presupposes was taken, and their annexation to the Windsor FPD supports the provision of efficient and effective fire protection and emergency services to the central portion of the County, where these areas are located.
3. The Windsor FPD can maintain or provide a higher level of service to the annexed areas.
4. The result under state law will be that previously-authorized special taxes of the Windsor FPD would be extended to property owners in the Bennett Valley FPD and Rincon Valley FPD and the IRP Areas of CSA 40.
5. There are no impacts or change to land use or development as a result of the reorganization.
The proposed resolution approving the reorganization contains the following terms and conditions:
1. The Reorganized District shall be named the Sonoma County Fire Protection District.
2. The Reorganized District shall be comprised of a seven-member board of directors.
3. The Windsor FPD shall receive the property taxes and revenue agreed to in the Property Tax Allocation Agreement, effective January 29, 2019, entered into by Sonoma County, Windsor FPD, Rincon Valley FPD, and Bennett Valley FPD.
4. By operation of law, the assets and liabilities of the Bennett Valley FPD and Rincon Valley FPD shall be transferred to the Windsor FPD as the successor agency.
5. The initial appropriations limit for the Reorganized District shall be the total of the combined existing appropriations limit of the Windsor FPD, Bennett Valley FPD, Rincon Valley FPD, and Mountain VFC, as well as the increased tax collections projected from the extension of Windsor FPD’s special taxes, not to exceed $20,000,000.
Pursuant to the State CEQA Guidelines, find that the proposal is exempt, pursuant to sections 15320 and 15061(b)(3).
Order the initiation of protest proceedings pursuant to section 57000 of the California Government Code.

A draft resolution is attached for Commission consideration (Attachment 6).

Alternate Recommendation

None

Disapproval of the reorganization would mean the continuation of separate fire protection agencies in the central portion of the County. Especially given ongoing financial and operational challenges of the agencies, the level of service would be anticipated to eventually decline, putting at risk the safety of the residents and the public.

Attachment

Concurrent Resolution of Application (No. 18-0491) from Boards of Directors of Windsor Fire Protection District, Bennett Valley Fire Protection District, Rincon Valley Fire Protection District, and the Sonoma County Board of Supervisors, dated November 13, 2018
Map Showing Agency Territories Subject to Reorganization
Plan for Service/Supporting Information from Windsor FPD
Property Tax Allocation Agreement between the Windsor Fire Protection District, Rincon Valley Fire Protection District, Bennett Valley Fire Protection District, and the County of Sonoma for the Reorganization of Fire Districts in the Central Portion of Sonoma County, dated January 29, 2019
Factors for Consideration
Draft Resolution