Authorize the Chair to sign Agreement 2025-10 with RSG, Inc. to conduct a government structure and operational efficiency analysis for the Rural Water and Sewer Municipal Services Review (MSR) 

Authorize the Chair to sign the agreement with RSG, Inc. The draft contract will be provided in a supplemental packet.

LAFCo's fiscal year 2025/26 budget adopted last May appropriated $30,000 in the Professional and Specialized Services account for this study. We received one proposal in response to our request, and it exceeded this budget, coming in at $49,900. Staff is currently working with RSG Inc. to reduce the scope of work and associated cost, and will send out a draft contract with these modified items in a supplemental packet. 

Yolo LAFCo's Strategic Work Plan for FYs 2025 and 2026 included "Priority 4: Address CSD Governance Issues" and included Action Step 4.3 to "Hire a consultant to prepare a consolidation study as part of the LAFCo MSR for the CSDs scheduled for FY 2025/26". RSG's scope of work will evaluate potential reorganization and governance alternatives among the County’s small rural water and wastewater service providers. The objective of this study is to help the MSR identify potential reorganization opportunities to improve operational efficiency, fiscal sustainability, and service accountability.