To: Sonoma County Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Maggie Luce, 707-565-1796
Vote Requirement: Majority
Supervisorial District(s): Fifth
Title:
Title
Consulting Agreement for Lower Russian River Governance Study
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Recommended Action:
Recommended action
Authorize the Chair to execute an Agreement for a Lower Russian River Governance Study with Blue Sky Consulting Group (“Blue Sky”) in an amount not to exceed $148,050 and with a term from October 1, 2022 to June 30, 2023. (Fifth District)
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Executive Summary:
The County Administrator’s Office and District 5 staff will oversee a district formation project to identify options to improve the delivery of government services in the Lower Russian River. After a competitive procurement and evaluation process, Blue Sky was selected to conduct a governance options study for the lower Russian River communities. Blue Sky will conduct a baseline analysis of current services, engage the community to identify alternatives, as well as the community’s willingness to pay for new or expanded services, perform a data analysis on the financial feasibility of potential governance options, and develop a community supported strategic work plan for implementing local governance solutions. Approval of this agenda item will authorize the Chair of the Board of Supervisors to execute an agreement for consulting services with Blue Sky, in an amount not to exceed $148,050.
Discussion:
On December 14, 2021, the Board of Supervisors approved $305,000 in funding and staff resources for Districts 1 and 5 to engage consultants to analyze the provision of services to unincorporated communities in the Sonoma Valley and West County, respectively, in order to identify potential alternate governance and service options. This funding, which came from the District Formation funds, was designated to be split evenly between District 1 and District 5 ($152,500 per district). On May 3, 2022, the Board of Supervisors approved an additional $457,500 in District Formation funding and General Fund Contingencies to finance Districts 2, 3 and 4’s interests to explore governance service options for unincorporated communities in south, central and north Sonoma County. Overall, the Board of Supervisors has agreed to allocate $152,500 in one-time funds for each district to explore district formation activities.
The lower Russian River is comprised of a series of small, unincorporated rural towns that have built up with a history of logging, agriculture, and tourism. As unincorporated entities, many of the needed services are provided from the County or from local community service districts. There are currently gaps and inadequacies in service provisions to the small towns in this region.
The County Administrator’s Office and District 5 staff developed a scope of work for a consultant to create a local governance options plan for the lower Russian River communities. The consultant team will conduct a baseline analysis of current services, engage the community to identify alternatives, and develop a community supported strategic plan for local governance solutions.
The Consultant will work with County staff and community members to identify:
1) Potential solutions to existing gaps in government services in the Lower Russian River
2) Costs of proposed solutions
3) Potential revenue sources for proposed solutions (special tax assessment on property taxes, sales taxes, transient occupancy taxes, etc.)
4) Level of community willingness to pay for these proposed solutions
Examples of reorganization that will be considered in the financial analysis include, but are not limited to:
• Establishment of new special district(s) with the obligation of a special tax
• Creation of joint powers authority(ies)
• Reorganization and/or consolidation of existing local agencies (Community Service District, Special Districts, etc.)
• Municipal incorporation
Request for Proposal
Staff issued an initial Request for Proposal (RFP) for the Lower Russian River Governance Study in May 2022, which did not result in any proposals. Staff revised the scope of work and timeline, then issued a revised RFP in June 2022. Proposers were asked to demonstrate their extensive experience in community engagement, tax and local government services analysis, and rural or small-town community governance solutions.
The County received four proposals, which were reviewed by an evaluation committee comprised of staff and community representatives. All four proposals met the required qualifications for the project, resulting in four interviews with the evaluation committee.
Blue Sky
The County has selected Blue Sky Consulting Group (“Blue Sky”) to be the consultant for this project. Founded in 2005, the Blue Sky Consulting Group provides quantitative analysis of and strategic insights into complex public policy issues at both the local and state levels. The Blue Sky project team has developed numerous financial forecasts on behalf of local governments, assessed the impact of development on county costs and revenues, and assisted local governments in analyzing service needs and available resources to address those needs.
Strategic Plan:
N/A
Prior Board Actions:
April 16, 2019: Transient Occupancy Tax Program Update
December 14, 2021: Governance Studies for Unincorporated Areas of Sonoma Valley and West County
May 3, 2022: District Formation Activities for Unincorporated Areas in North, South, and Central Sonoma County
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Fiscal Summary
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Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
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Budgeted Expenses |
$152,500 |
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Additional Appropriation Requested |
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Total Expenditures |
$152,500 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
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Use of Fund Balance |
$152,500 |
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Contingencies |
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Total Sources |
$152,500 |
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Narrative Explanation of Fiscal Impacts:
This contract will be paid for with available District Formation fund balance in the Transportation and Public Works budget. The District Formation fund was originally comprised of discretionary sources originating from the Non-Departmental Budget. Beginning in FY 19/20, the Board of Supervisors approved an annual Transient Occupancy Tax Measure L allocation of approximately $175,000/year for District Formation Funds. $152,500 is earmarked for District 5 activities. This contract will not exceed $148,050, leaving $4,450 for District 5’s district formation activities outside the scope of this contract. $152,500 will remain available for each of the other four supervisorial districts for district formation.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
1-Blue Sky proposal
2-Blue Sky consulting agreement
Related Items “On File” with the Clerk of the Board:
None