Receive status update on the 2024 Municipal Services Review (MSR) for Flood Protection Services and consider recommendations for Reclamation Districts (RD) 307 and 765

Receive the staff report and provide direction to implement one or more of the following options for consideration of the municipal services reviews of RD 307 and 765 (staff recommends No. 2):

1. Determine no additional action is needed as LAFCo has performed its legal responsibility of providing information and is not empowered by the legislature to enforce MSR recommendations.
2. Request the County Auditor provide for an audit of RD 307 per Government Code §26909 and charge the costs to the District’s unencumbered funds (RD 765 has indicated its audit is in progress).
3. Direct staff to return with a resolution to initiate dissolution of RD 307 and/or RD 765 if an auditing contract has not been executed and audit commenced within 12 months.
4. Consider legal action to compel RD 307 to respond to LAFCo’s information requests per Government Code Sections §56378(a) and §56386(a).

LAFCo adopted an MSR for the 12 local maintaining agencies who perform flood-protection services in Yolo County (LMAs) on September 26, 2024, which had the overarching governance goal of consolidating the 12 existing LMAs into 7, one for each hydrologic basin. In the Clarksburg Basin, there are three LMAs: RD 307, RD 765 and RD 999. The MSR determined RDs 307 and 765 did not meet DWR criteria and state laws in many areas (see attached chart), and therefore recommended RD 999 ultimately be the successor LMA for the Clarksburg Basin.

This item was initially heard at the July 25, 2024, meeting and was continued until September 26, 2024, to allow additional time for the RD 999 board to meet and discuss the MSR recommendation. The RD 999 Board President, Tom Slater, stated the RD 999 board agreed with the MSR recommendation to eventually reorganize RDs 307 and 765, but the timing wasn’t right, and RD 999 would exercise a provision in the Cortese-Knox-Hertzberg Act (Government Code §56857) to automatically terminate the proposal if LAFCo initiated it. Accordingly, LAFCo instead directed staff to provide an update in 6-12 months on the status of RDs 307 and 765 recommendations.

On October 7, 2024, staff emailed RDs 307 and 765 the final MSR including a transmittal letter highlighting the recommendations and LAFCo’s direction for an update in 6–12 months. On March 4, 2025, staff emailed both RDs a reminder and notice that the status update would be scheduled for July 24, 2025. On June 5, 2025, staff emailed the districts again with a table of MSR recommendations requesting each district respond by filling in status by June 30, 2025.

On June 26, 2025, staff received a call from the Board President of RD 765, Patrick Markham, indicating they were working on the MSR recommendations. On July 2, 2025, RD 765’s legal counsel emailed the status (see attached), which was very brief, and staff requested additional details and/or backup information, which has not been received yet.

There has been no response from RD 307. LAFCo counsel contacted their last known legal counsel, but they indicated they hadn’t represented RD 307 in several years. Consequently, staff contacted the District’s engineers (KSN, Inc.) and they indicated on July 15, 2025, that they would seek participation from Pete Dwyer, the RD 307 Board President. Staff will provide an update on any further developments that may occur before the LAFCo meeting.

Although Yolo LAFCo typically employs a more collaborative approach to collecting the information necessary an MSR, Districts are required to comply with information requests per Government Code §56378(a) and §56386(a). Accordingly, LAFCo has at its disposal legal remedies to enforce these statutory mandates. While a lawsuit to mandate production of records is a measure of last resort, it is an option available for the Commission's consideration.