Receive update on Long-term Fire Protection Sustainability, consider finalizing Board direction on Reorganization of LAFCo Area 4 (East Davis, Elkhorn, No Mans Land, and Springlake fire protection districts) including potential action affecting County Service Area 9, and consider funding plan to provide $1.5 million annually to support Fire Districts. (General fund impact $1,500,000) (Pinedo/Rinde/Lindbo/Bryan/Sabatini) (Est. Time: 60 minutes)

Staff's report is expected to contain a presentation including an update on the following: 

a. Consider modifying the successor agency for the territory currently served by the Elkhorn FPD from Springlake FPD to County Service Area 9 (CSA9); 

b. Consider ending the pursuit of the balance of the 2022 Local Agency Formation Commission (LAFCo) Municipal Service Review (MSR) recommendations for Area 4; and
c. Consider directing the Chief Administrative Officer to work in concert with each contract fire protection district to ensure that appropriate rates are established for contracted fire protection services at the next renewal period for each contract district. 

Proposed Modification of Elkhorn FPD Successor Agency

The modified Elkhorn FPD successor agency proposal flows from the feedback during the engagement efforts with the East Davis and Springlake Fire Protection Districts—specifically, the concern over impacting contract-only fire protection districts that are performing well. If Elkhorn becomes part of CSA 9, the County Board of Supervisors would assume responsibility for the district and the necessary fire protection contracts with the cities of Woodland and West Sacramento. This would diminish the need to pursue the balance of the recommendations in the previously approved MSR. The current MSR or a new MSR could be considered at a later date should the need arise.

Modification of LAFCo MSR Recommendations for Area 4 & Direction to Chief Administrative Officer

One of the primary goals of the LAFCo recommended reorganization of the contract-only districts in Area 4 (Springlake, No Mans Land, and East Davis FPDs) was to align a singular successor district with each contracted City fire department to ensure that the contract rates for fire protection services provided by the cities are equitable, transparent, and appropriate.  Staff recommends that the Board direct the Chief Administrative Officer to work in concert with each contract-only fire protection district to ensure that the appropriate rate structure is established at the next contract renewal period for each contract-only district. If approved, this would alleviate the concern identified in the LAFCo MSR. In the event that issues remain unresolved upon future contract renewals, the Board would have another opportunity to initiate consolidations or reorganizations, if appropriate. 

Fire Sustainably Proposition 218 Matching Funds Framework

The funding proposal comes from the deep needs of the fire protection districts as identified through the work of the Proposition 218 consultants. Recent polling suggests significant challenges to the passage of the 218 measures and the provision of ongoing funding increases the chances of positive outcomes for those districts moving forward with Proposition 218 assessment elections this summer. Three (3) fire protection districts have indicated that they intend to undertake Proposition 218 elections this summer to allow them to enroll the new assessments, if approved by voters, on the County’s assessor tax rolls before the August 10, 2023, deadline for this tax year.  Two (2) additional districts intend to undertake Proposition 218 elections this fall. Additionally, the accountability measures included in the funding proposal reinforce the need for the districts to participate in their own individual financial stability.

The Fire Sustainably Ad Hoc was not unanimous on a specific dollar amount nor a specific funding source for this framework. Staff have identified certain funding sources that would be eligible for this type of expenditure, including: general fund, Proposition 172 revenues, and Cannabis Tax revenues.  Depending on the funding source selected, there are expected to be impacts to existing County programs and the County would need to adjust its budget to accommodate and prioritize this new ongoing expenditure. The County Administrator does not recommend any reallocation of Proposition 172 funds as such a change would be disruptive to existing law enforcement programs and would likely require backfill from other sources such as General Fund.

Staff have collaborated with various rural fire protection districts, the Woodland Fire Department, the Davis Fire Department, the Fire Sustainability Ad Hoc Committee (Supervisors Barajas and Sandy), the Department of Finance, and the Office of County Counsel on this effort.