Hold a public hearing and consider a resolution of application to the Local Agency Formation Commission to dissolve the Wild Wings County Service Area and create a Wild Wings Community Services District. (No general fund impact) (Echiburu/Valenzuela)

1. Hold a public hearing (continued from July 27, 2021) and receive public comment;
    
2. Consider a resolution of application pursuant to Government Code Section 61013 to initiate proceedings with the Yolo Local Agency Formation Commission (LAFCo) for the formation of a Community Services District (CSD);
    
3. Direct staff, if the resolution is adopted, to submit the application to the Yolo Local Agency Formation Commission; and
    
4. Direct staff to file a Notice of Exemption pursuant to the California Environmental Quality Act (CEQA).

County Mandated Service

The Wild Wings County Service Area (CSA) was created in May 2004 under the County Service Law (Gov. Code §§ 25210, et seq.) to provide water and sewer services to 337 homes in the Wild Wings subdivision, located 5 miles west of Woodland. It is the only County-run wastewater treatment plant. The CSA is funded primarily by collecting fees from the homeowners for water and wastewater services. The CSA acquired the Wild Wings Golf Course in March 2009. The golf course is managed by Kemper Sports through a County contract. Homeowners pay a $1,700 assessment for the maintenance of the golf course annually.

The Wild Wings Homeowners Association (HOA) and one of its board members filed a lawsuit in 2019 alleging the County mismanaged the wastewater treatment and freshwater system at the plant operated by the CSA and improperly imposed fees on the property owners for the County's allegedly inadequate maintenance and allegedly poor upkeep of the plant. The County denied the claims and allegations of the lawsuit. However, to avoid the substantial expense and inconvenience of further litigation, the County and the plaintiffs entered into a settlement agreement in May 2021 (Agreement No. 21-93), in which the County agreed to explore the possibility of forming a Community Services District (CSD). If a CSD is formed, the plaintiffs agreed to release the County of all claims, and if it the CSD is not formed, the settlement agreement will terminate and the plaintiffs may refile their claims against the County.  The settlement agreement requires the Board to consider a resolution of application within 90 days of the May 10, 2021 execution of the agreement.

As part of the settlement, the parties agreed that the County would create the Wild Wings Community Services District Formation Advisory Committee (WWCSDFAC or Committee) to monitor and provide oversight during the process of considering the CSD formation. The WWCSDFAC is comprised of six members who reside within the Wild Wings CSA. Three members were appointed by the Homeowners Association (Rick Fenaroli, Tom Hanagan, Dave DeKreek) and three members were appointed by the Board of Supervisors (Carrie Scarlata, Brenda Seabert, and Scott Picanso). The Committee's meetings have been public and subject to the Brown Act. All meetings have been recorded and are available online at www.yolocounty.org under the Wild Wings Community Services District Formation Advisory Committee webpage.

A CSD is organized under the Community Services District Law (Gov. Code §§ 61000 et seq.).  A CSD is similar to a CSA as to the types of services it may provide, such as supplying water, collecting and treating wastewater, providing solid waste services, providing streetlighting, or operating and maintaining recreation facilities.  However, unlike a CSA, a CSD is an independent special district that is governed by its own board of directors elected by the voters within the CSD (not the County Board of Supervisors). The proposed resolution of application lists the scope of services to be provided by the proposed CSD, including water, sewer/wastewater services, recreation facilities and programs, maintenance of public rights-of-way and streets, and ownership/operation of the wastewater treatment plant, Wild Wings golf course, and the Nest.  The proposed CSD would cover the same area as the existing Wild Wings CSA.

The Committee met six times since established in May 2021 to receive information on the differences between CSAs and CSDs.  The Committee heard presentations by Christine Crawford, executive director of LAFCO, Leo Refsland, general manager of the Madison CSD and Steve Knightley, general manager of the Esparto CSD.

The Committee participated in two site visits; one at the waste water treatment plant and the other at the Wild Wings Golf Course while receiving information from SUSP, who manages the waste water treatment plant, and Kemper Sports staff, who manage the golf course. They also received information from the Elections Department through a presentation by Elections staff. The Committee also reviewed budgets and contracts from the Wild Wings CSA.

The Committee declined to take a straw vote at the July 6, 2021 meeting regarding the proposed resolution of application to dissolve the Wild Wings CSA and form a CSD in front of the Board of Supervisors on July 27th. Committee members felt they needed additional time to conduct research before making a recommendation to the Board. Committee members agreed to discuss a straw vote recommendation at the July 19th meeting, which included 3 members in favor of staying a CSA and 3 members who voted to change the governance structure to a CSD. Two of the three members who voted in favor of the CSD did so with caveats.

The Committee is scheduled to make a formal recommendation to this Board at its August 31, 2021, regularly scheduled meeting. An oral update will occur during this public hearing by staff.

Separately, Community Services Department staff sent a survey to all homeowners in Wild Wings asking which governance structure they preferred. An update to the survey results will be presented at this hearing.

If the Board of Supervisors adopts the resolution of application, the County will submit an application for the formation of the CSD to the Yolo Local Agency Formation Commission (LAFCo), which is the local governmental agency responsible for "changes of organization" in Yolo County, including creation and dissolution of special districts, an extension of services, and city annexations. LAFCo will evaluate the application and make a determination on the application in its own independent judgment and may impose conditions of approval as allowed by State law.  Pursuant to the CSD Law, LAFCo cannot approve a proposal that includes the formation of a CSD unless LAFCo "determines that the proposed district will have sufficient revenues to carry out its purposes."

If LAFCo approves the application, LAFCo will then conduct protest proceedings pursuant to Government Code section 57000 et seq. and Government Code section 61014. If a majority of property owners in Wild Wings object, the formation proceedings are terminated and the CSD is not formed. If less than a majority protest exists, LAFCo will either (1) order formation of the CSD subject to voter approval, or (2) order formation of the CSD subject to the approval by the voters of a special tax or the approval by the property owners of a special benefit assessment.

The decision to reorganize the CSA into a CSD is categorically exempt from CEQA per CEQA Guidelines Section 15320 (changes in organization of local agencies).

The Board may take action on the resolution of application, or continue the public hearing if it determines additional information or input from the Committee is necessary. The HOA recently agreed to extend the timeline for a decision by this Board to the end of September.

County Counsel