SONOMA LOCAL AGENCY FORMATION COMMISSION 111 SANTA ROSA AVENUE, SUITE 240, SANTA ROSA, CA (707)

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1 SONOMA LOCAL AGENCY FORMATION COMMISSION 111 SANTA ROSA AVENUE, SUITE 240, SANTA ROSA, CA (707) Item 4.2 Staff Report Meeting Date: February 6, 2019 Agenda No. Item 4.2 Agenda Item Title: Roseland Fire Protection District Reorganization No (Roseland FPD) LAFCO File No Applicant: Proposal: Environmental Determination: Staff Contacts: Roseland Fire Protection District Request for reorganization involving dissolution of the Roseland Fire Protection District, annexation of the portion of the District outside the City of Santa Rosa to the Rincon Valley Fire Protection District, and transfer of the assets of the District, including reserves, to the City of Santa Rosa Not a project under CEQA Mark Bramfitt and Carole Cooper

2 ANALYSIS Overview The board of directors of the Roseland Fire Protection District (Roseland FPD or District), by resolution, is seeking a reorganization involving dissolution of the District, transfer of District assets to the City of Santa Rosa (City), and annexation of two islands of unincorporated territory to the Rincon Valley Fire Protection District (Rincon Valley FPD) (see Attachment 1 for the District s resolution). This reorganization would address one of two remainder conditions of the annexation of five islands of territory in southwest Santa Rosa to the City (generally referred to as the Roseland Area Annexation) that was approved by the Commission in In addition, this is one step in a series of proposals that the Commission is asked to consider that, if approved, would result in a single entity s providing fire and emergency services to a broad area of the central portion of the County. Staff asks that the Commission hold a public hearing regarding the reorganization and consider adopting a resolution directing the reorganization of the District. Background The Roseland Fire Protection District service area has included six islands of territory in southwest Santa Rosa, four of which are now in the City subsequent to the Roseland Area Annexation approved by the Commission in The remaining two islands, referred to as Remainder Areas in the balance of this report, are generally located: (1) south of State Highway 12, north of Ludwig Avenue, east of Llano Road, and west of South Wright Road; and (2) along Yuba Drive, south of Barndance Lane, north of Ludwig Avenue, and east of Stony Point Road (see Attachment 2 for a map of the District). A portion of the first Remainder Area is within the City s sphere of influence (sphere) and urban growth boundary; while all of the second Remainder Area is within the sphere, only a portion is within the urban growth boundary, and the Area is not contiguous to the City Agenda Item No February 6, 2019

3 boundary. The City has not indicated any near term interest in annexing any of the Remainder Areas into the City. The District has contracted with the City of Santa Rosa for fire and emergency services provision since It owns one station on Burbank Avenue near Sebastopol Road in the Roseland neighborhood. District Board members have indicated their interest in ensuring that service levels are maintained for District residents both within the City and in the Remainder Areas. After consultations over a lengthy period of time among staff of the City of Santa Rosa Fire Department ( Santa Rosa Fire ), the Rincon Valley FPD, and LAFCO, a consensus emerged that, should the Commission approve dissolution of the District, Santa Rosa Fire should serve the District territory within City boundaries as a result of the Roseland Area Annexation, and Rincon Valley FPD should serve the Remainder Areas. Reorganization as Interim Step As noted in the introduction, reorganization involving dissolution of the Roseland FPD, transfer of its assets to the City, and annexation of the Remainder Areas to the Rincon Valley FPD is proposed as an interim step in a larger reorganization process which the Commission will be asked to review shortly after its consideration of the subject proposal. The subsequent proposal will include a reorganization of the Windsor Fire Protection District (Windsor FPD), including dissolution of the Rincon Valley FPD and annexation of its territory to Windsor FPD. The purpose of that reorganization would be to promote the efficient and effective provision of fire and emergency services by a single, combined entity, with improvements in service and more sustainable finances. (The proposal also includes dissolution of the Bennett Valley Fire Protection District and detachment of a portion of County Service Area No. 40 (Fire Services), and annexation of those territories into the Windsor FPD.) In addition, if the Commission takes the proposed subsequent actions to approve the Windsor FPD reorganization, this action will be an interim step in that proposed reorganization. Representatives from Santa Rosa Fire and Rincon Valley FPD have indicated that on the ground service provision would not change due to the subject reorganization. The agencies have a contractual agreement for mutual aid that recognizes that they respond to service calls with the closest available resource, notwithstanding jurisdictional boundaries. Given the proximity of Santa Rosa s facilities and resources to the Remainder Areas - whereas Rincon Valley FPD s nearest station is on Todd Road just west of Highway 101, Agenda Item No February 6, 2019

4 Santa Rosa Fire would, in most cases, be the first response agency. This service arrangement would continue if the subsequent Windsor FPD reorganization is approved. Financial Impacts Should the Commission approve dissolution of the Roseland FPD, Santa Rosa and Rincon Valley FPD would each receive its associated share of the property tax increment previously allocated to the Roseland FPD. All assets and liabilities of the District, including the fire station, equipment, and financial reserves, are proposed to be transferred to the City upon dissolution of the District. (Because the financial reserves of the District were intended to fund facility replacement, the District Board s resolution of application seeks a condition from LAFCO that the reserves be used for that purpose by the City. Staff does not believe that imposing such a condition on the City is enforceable and, further, that this is a policy matter at the discretion of the City.) Property owners in the Remainder Areas that would be annexed to the Rincon Valley FPD would be subject to special assessments of that district. Rincon Valley FPD has a special assessment based on units of risk. For single family dwellings, the assessment is $36 per year. Should the Commission approve the subject reorganization and, subsequently, approve reorganization of the Windsor including dissolution of the Rincon Valley FPD (and other actions) and annexation of all Rincon Valley FPD to Windsor FPD, property owners would be subject to special assessments of Windsor FPD. Windsor FPD has two special assessments, one a flat per-parcel rate and the other based on units of risk. Single-family dwellings are assessed in part based on building size, with typical annual assessments of about $180. This would replace what would have been the Rincon Valley FPD assessment of $36. Environmental Determination The reorganization is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to section of the State CEQA Guidelines (Changes in Organization of Local Agencies). A proposal can be found exempt where changes do not change the geographical area in which previously existing powers are exercised. The subject reorganization is further exempt under State CEQA Guidelines Section 15061(b)(3). This general rule exemption states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA Staff agrees with the District s determinations and notes that, instead of fire and emergency services being provided by the Roseland FPD, the only change as a result of Agenda Item No February 6, 2019

5 the subject reorganization would be that Rincon Valley FPD would be designated to serve the Remainder Areas. No change in the environment is anticipated from this action. Individual Factors for Consideration California Government Code section describes 17 factors to be considered in the Commission s review of a proposal. The review must include, but is not limited to, these factors. The factors are outlined and addressed in Attachment 3. Need for Public Hearings: Merits and Protest As indicated earlier in this report, the Roseland FPD initiated reorganization proceedings with the Commission by resolution of its board of directors. In a situation in which it is clear that not all owners of property or all registered voters within the affected territory have given their written consent to the proposal, state law requires the Commission to conduct a public hearing on the merits of the proposal. Because there are more than 1,000 owners and registered voters in the District, pursuant to state law, a one-eighth page notice was published in the Press-Democrat, posted at the County offices, and provided to affected agencies. The notice was also posted on the Sonoma LAFCO website followed by an informational narrative for the public. The notices alerted owners that the Remainder Areas proposed to be annexed to the Rincon Valley FPD would be subject to a parcel tax based on units of risk. Property owners were further notified that, should the Commission approve the proposed subsequent reorganization involving, among other actions, dissolution of the Rincon Valley FPD and annexation of district territory to the Windsor FPD, property owners would, instead, be subject to special taxes, in the form of assessments that have been established by the Windsor FPD. Should the Commission approve the action, the approval will be the subject of subsequent protest proceedings. Pursuant to state law, the Commission will conduct a protest proceeding allowing owners of property and registered voters residing within the District the opportunity to protest the action. LAFCO will provide mailed notice of the right to protest to each landowner. Conclusion The proposed reorganization has been vetted by all affected agencies, resulting in a consensus view that this reorganization best meets the goal of providing effective and efficient fire and emergency services to the residents within the City and of the Remainder Areas of the Roseland Fire Protection District. This action is also a necessary prerequisite for the proposed reorganization involving the Windsor FPD. If the Commission approves the proposed reorganization, landowners and voters will have the opportunity to formally protest the action. RECOMMENDATION Agenda Item No February 6, 2019

6 Staff requests that the Commission conduct a public hearing on the Roseland Fire Protection District s request for reorganization involving dissolution of the District, transfer of its assets to the City of Santa Rosa, and annexation of the Remainder Areas to the Rincon Valley Fire Protection District. Staff recommends the following actions, subsequent to the Commission s deliberations: 1. Adopt a resolution approving the reorganization, pursuant to the following findings and determinations; a. As part of the Roseland Area Annexation approved by the Commission in 2017, territory in four unincorporated islands that are in the Roseland Fire Protection District came under the jurisdiction of the City of Santa Rosa. It is appropriate for the City to take on responsibility for fire and emergency services for these areas. b. The District does not have the organizational, financial, or service capabilities to continue to provide fire and emergency services to the Remainder Areas. c. The Remainder Areas are within the sphere of influence of the Rincon Valley Fire Protection District and are contiguous to the boundary of that district; the Rincon Valley FPD can serve the needs of the Remainder Areas upon dissolution of the Roseland FPD. d. Upon dissolution of the Roseland FPD, all assets and liabilities of the Roseland Fire Protection District, including the fire station, equipment, and financial reserves, shall be transferred to the City of Santa Rosa. 2. Pursuant to the State CEQA Guidelines, find that the proposal is exempt, pursuant to sections and 15061(b)(3). 3. Order the initiation of protest proceedings pursuant to section of the California Government Code. Staff has provided a draft resolution for the Commission s review and consideration (Attachment 4). ALTERNATE RECOMMENDATION None. If the Commission disapproves the proposal, provision of fire and emergency services to the Remainder Areas would need to be determined. The only apparent alternative, at this time, is County Service Area No. 40 (Fire Services), which, in practical terms, would mean that a volunteer fire company would serve the Remainder Areas, or the County would Agenda Item No February 6, 2019

7 seek to enter into a service contract with the City or Rincon Valley FPD to provide services. It is unclear what level of services could be provided with available tax funding. Further, if the Commission declines to annex the Remainder Areas to Rincon Valley FPD, the subsequent reorganization of Windsor FPD would need to be modified. ATTACHMENTS 1. Resolution No. R-2, Roseland Fire Protection District, October 22, 2018, Initiating Reorganization Proceedings with Sonoma LAFCO 2. Map of Roseland Fire Protection District 3. Factors for Consideration 4. Draft Resolution Agenda Item No February 6, 2019