Authorize the Chair to sign Agreement 2025-01 with RSG, Inc. not to exceed $19,700, to conduct an independent fiscal analysis of the Elkhorn Fire Protection District (FPD) Reorganization Proposal

Authorize the Chair to sign the agreement with RSG, Inc.

LAFCo's fiscal year 2024/25 budget adopted last May did not anticipate the Elkhorn FPD Reorganization proposal, and appropriated only $10,000 for Professional and Specialized Services. This contract will exceed the current appropriation in this account. However, the budget can absorb these costs, as discussed at our September 2024 meeting when LAFCo approved a request to waive Elkhorn FPD's proposal application fees. Primarily because the budget assumed LAFCo would hire a new employee by Oct 1, 2024, but didn't until Jan 13, 2025, resulting in a Salaries and Benefits savings of approximately $55,000. After staff completes our year-end budget projections, we will schedule an item to adjust our budget to balance the Services and Supplies category accordingly. Therefore, no fiscal impact is anticipated.

An independent fiscal analysis is needed for the Elkhorn FPD Reorganization proposal. A Request for Proposals was issued for fiscal analysis services in December 2024 to six firms. Although all the firms confirmed receipt, we ultimately received only one proposal. However, Yolo LAFCo has worked with RSG previously (in 2011 and 2013), is satisfied the team is well-qualified, understands the role and responsibilities of LAFCos, and can provide the analysis needed. Staff reached out to multiple LAFCos who have worked with RSG, Inc. recently and did not receive any negative feedback. 

RSG's scope of work will provide a comprehensive fiscal analysis to validate cost assumptions, assess revenue sufficiency, and identify potential financial shortfalls for the Elkhorn FPD Reorganization. The analysis is intended to guide service contract negotiations, ensure fiscal sustainability, and inform LAFCo's governance decisions. Staff recommends approval of the contract.