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Marin Local Agency Formation Commission Regional Service Planning Subdivision of the State of California AGENDA REPORT August 10, 2017 Item No. 18 (Business/Action) August 3, 2017 TO: FROM: SUBJECT: Marin Commissioners Policy Committee (Baker, Blanchfield, and Connolly) Keene Simonds, Executive Officer Final Proposal to Readopt Study Schedule The Commission will review a final proposal from the Policy Committee to readopt a new five-year study schedule calendaring municipal service reviews. The final proposal would replace the existing study schedule set to expire at the end of the next fiscal year and calendars municipal service reviews beginning in 2017-2018 and extending to 2021-2022. The final proposal follows the earlier presentation of a draft at the June 8 th meeting and subsequent public review and remains entirely intact with no changes. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 ( CKH ) requires local agency formation commissions (LAFCOs) to review and update spheres of influence for all cities, towns, and special districts by January 1, 2008 and every five years thereafter as needed. CKH specifies LAFCOs must inform their sphere updates by preparing comprehensive evaluations titled municipal service reviews to determine the availability and adequacy of local governmental services relative to current and future community needs. The legislative purpose of the municipal service review is to make LAFCOs more proactive in independently overseeing local government agencies and their municipal services ahead of subsequent sphere updates with increasingly emphasis in promoting accountability and achieving efficiencies. A. Background Current Study Schedule Adoption and Subsequent Amendment Marin LAFCO s ( Commission) s current and inaugural five-year study schedule calendaring municipal service reviews was adopted in June 2014. Adoption followed a formal public review and comment period as well as extensive discussion within the Commission starting with the preceding annual strategic workshop held in January 2014. The study schedule was subsequently amended in January 2015 to transition from calendar year to fiscal year orientation, and as such extend through 2017-2018. The current study schedule generally emphasizes regional studies in which multiple cities, towns, and or special districts are grouped together based on common geographic settings with the majority in East Marin and divided along corridor sections of State Highway 101. The current study schedule assumes all municipal service review work Administrative Office Keene Simonds, Executive Officer 1401 Los Gamos Drive, Suite 220 San Rafael, California 94903 T: 415-448-5877 E: staff@marinlafco.org www.marinlafco.org Damon Connolly, Regular Dennis J. Rodoni, Regular Judy Arnold, Alternate Carla Condon, Vice Chair Town of Corte Madera Sashi McEntee, Regular City of Mill Valley Mathew Brown, Alternate City of San Anselmo Jack Baker, Regular North Marin Water District Craig K. Murray, Regular Las Gallinas Valley Sanitary Lew Kious, Alternate Almonte Sanitary Jeffry Blanchfield, Chair Public Member Chris Skelton, Alternate Public Member

will be performed in-house by staff and contemplates reviewing most but not all of the 65 local agencies directly subject to Commission oversight in Marin County. Current Study Schedule Progress to Date The Commission is approximately two years behind in completing the municipal service reviews calendared as part of the current study schedule. The lack of anticipated progress is primarily the result of unexpected staffing shortfalls affecting the threeperson office and marked by the delayed hiring of the Analyst in October 2015 and ongoing leave of the Clerk beginning in November 2015. Municipal service reviews completed or near completion include the Countywide Water Study and Central Marin Wastewater Study, which collectively covers thirteen local governmental agencies. 1 Readoption Process Presentation of Draft Proposal At the June 8, 2017 meeting, the Commission received a draft proposal to readopt a new study schedule from its Policy Committee (Baker, Blanchfield, and Connolly). The draft proposal drew on earlier Commission feedback and the Policy Committee s own observations in calendaring municipal service reviews over the next five-year period starting in FY 2018. 2 The Commission discussed the merits of the draft and proceeded to direct staff to circulate the document as presented for public review and comment and return with the item with or without changes for formal consideration in August. Readoption Process Review and Comment Period on Draft Proposal Marin LAFCO received two written comments on the draft proposal to readopt a new study schedule from the City of San Rafael and Marinwood Community Services District. Copies of both comments are attached to this agenda report for Commission review. B. Discussion This item is for the Commission to consider formal approval of a final proposal from the Policy Committee to readopt a new five-year study schedule calendaring municipal service reviews. As noted above the final proposal would replace the existing study schedule terming at the end of the next fiscal year and calendar municipal service reviews beginning in 2017-2018 and extending to 2021-2022. The final proposal returns to the Commission entirely intact from the membership s draft review and discussion at the June 8 th meeting. A summary of key provisions follows. 1 The Countywide Water Study was awarded Project of the Year by CALAFCO in October 2016. 2 The Policy Committee met at a noticed special meeting held on May 1, 2017 to discuss and among other items recommendations on a proposed readoption of the study schedule. At the time of the meeting the Policy Committee consisted of members Blanchfield, Burdick, and Connolly. The membership subsequently changed with Commissioner Burdick leaving office on May 2 nd and was replaced by the Chair appointment of Commission Baker. 2 P a g e

Proposed Readopted Study Schedule Policy Emphasis The proposed readopted study schedule draws on earlier Commission feedback and the Policy Committee s own observations in calendaring municipal service reviews over the next five-year period. Markedly, this includes the collective input of the Commission as communicated at the most recent annual strategic workshop held in January to readopt a new study schedule to reflect the current status in preparing municipal service reviews as well as budget resources; the latter of which is assumed not to significantly increase in the near term to accommodate among other items additional staffing. Relatedly, and consistent with current practice, the proposed new study schedule is telegraphed in terms of reach to assume the studies will be performed in-house by staff for purposes of costcontrol as well as investing in the Commission s organizational capacity. 3 Proposed Readopted Study Schedule Key Components The proposed readopted new study schedule picks up where the current study schedule ends in terms of completed municipal service reviews and proceeds to calendar with some timing adjustments the remaining commitments over the next five-year period. The proposed new study schedule includes continuing to emphasize regional municipal service reviews within East Marin in which cities, towns, and or special districts are grouped together based on common geographic settings with a gradual north-to-south orientation along the Highway 101. The proposed new study schedule also includes new municipal service reviews towards the back end as recommended by the The proposed readopted study schedule calendars municipal service reviews over the next five fiscal years and assumes all work will be performed inhouse by staff for purposes of cost-control as well as investing in the Commission s organizational capacity The proposed readopted study schedule generally picks up where the existing document ends in terms of completed municipal service review while adding new reviews towards the back end. The proposed new study schedule continues to emphasize regional reviews in East Marin and ultimately covers 70% of all local agencies under Commission oversight. Policy Committee. This includes now calendaring a regional study covering the Sausalito-Marin City area and preparing an update to the earlier Southern Marin Wastewater Study performed in the late 2000s. In all, 46 out of the 65 local governmental agencies subject to the Commission s oversight are included in the proposed new study schedule. 3 Consistent with adopted policy commencement on all calendared municipal service reviews are preceded by the Commission adopting an actual scope of analysis at a noticed public hearing. 3 P a g e

C. Analysis The proposed readopted study schedule affirmatively responds to the Commission s discussion at its most recent strategic planning workshop and stated preferences in meeting its municipal service review directive in Marin County. The substantive result is a reset of the study schedule going forward to address remaining commitments while also adding new commitments in-step with existing policy preferences to emphasize regional studies in East Marin. The readopted study schedule also continues to purposefully reflect quality over quantity and marked by generally scheduling no more than two studies a fiscal year. This measured approach, consequently, means not all local agencies subject to the proceedings are included in the new five-year schedule. It is expected, accordingly, the Commission will prioritize the inclusion of the local agencies not covered over the next five-year period in the subsequent study schedule beginning in 2022-2023. D. Alternatives for Action The following alternatives are available to the Commission: Alternative One (Recommended): a) Approve the proposed readopted study schedule calendaring municipal service reviews beginning in 2017-2018 and through to 2021-2022 with any desired changes as identified by the membership. b) Direct staff to circulate the approved readopted study schedule to all 65 local agencies under the Commission s oversight. Alternative Two: Continue consideration of the proposed readopted study schedule calendaring municipal service reviews beginning in 2017-2018 and through to 2021-2022 and provide direction therein to the Policy Committee as needed. Alternative Three: Take no action. E. Recommendation It is recommended the Commission proceed with the actions outlined in the preceding section as Alternative One. 4 P a g e

F. Procedures for Consideration This item has been agenized for action as part of the regular business calendar. The following procedures, accordingly, are recommended in the consideration of this item: 1) Receive verbal report from the Policy Committee; 2) Invite comments from any interested audience members (voluntarily); and 3) Discuss item and consider action on recommendation. Respectfully and on behalf of the Policy Committee, Keene Simonds Executive Officer Attachments: 1) Comment Letters - City of San Rafael - Marinwood Community Services District 2) Final Proposed Study Schedule 5 P a g e