Continued Public Hearing to consider Resolution 2025-04 adopting the Cemetery Services Municipal Services Review (MSR) and approving a Sphere of Influence (SOI) Update for the Capay Cemetery District, and determine that the MSR/SOI is exempt from the California Environmental Quality Act (CEQA)

1. Receive staff presentation and continued Public Hearing on the MSR/SOI Update.
2. Close the Public Hearing and consider the information presented in the staff report and during the Public Hearing.
3. Approve Resolution 2025-04, adopting the Cemetery Services MSR and approving the SOI Update for the Capay Cemetery District.

The purpose of this Municipal Services Review (MSR) is to provide a comprehensive inventory and analysis of the services provided by these special districts and evaluate the governance structure and operation, and suggest ways to improve service delivery, financial controls, and accountability. The MSR also informs any recommended sphere of influence (SOI) updates based on the MSR’s governance recommendations.
 

Following Commission direction from the May 22, 2025, meeting (Attachment C), staff made minor changes to the MSR to emphasize the four rural cemetery districts' auditing deficiencies as a required finding for a resolution of intent to initiate a dissolution of the districts if an audit or other approved financial review is not completed in 12 months. The recommendation regarding audits for the rural districts were revised to more clearly state the auditing deficiencies and present steps toward remediation.  As an additional change, after further discussion with the Knights Landing Cemetery District and Knights Landing Community Service District, it was decided to recommend that the cemetery district contract directly with the community services district for management and operation services.  

The revised recommendations are included in Resolution 2025-04 (Attachment A) and the Public Cemetery Services MSR/SOI (Attachment B).