Ridgeline Municiple Strategies & Fiscal Analysis Information (last updated 04/05/2024)

April 24, 2023 Joint Special Board Meeting on Consolidation

The KFPD and KPPCSD Boards voted to call a Joint Special Board Meeting which was held on April 24, 2023. The two districts heard information and asked question of Lou Ann Texeira, the Contra Costa Local Agency Formation Committee Executive Officer.

Below is a link to the video recording of that meeting:

https://www.youtube.com/watch?v=yzXQtF-iYEc

or can be downloaded from:

https://www.kensingtonfire.org/files/466a4831f/GMT20230425-022017_Recording_640x360.mp4

A summary of the questions and answers asked at the meeting are below:

What is LAFCO?

The agency which approves or denies consolidation or reorganization applications  Click here for more detailed answers.

What is “consolidation” vs “reorganization”?

A consolidation and a reorganization are functionally equivalent but use two different processes. In the former, a new CSD is formed from combining the two districts. In the latter, the existing CSD is used to combine the two districts. Throughout CA, the latter is much more common.  Click here for more detailed answers.

What does LAFCO perceive as the benefits to consolidation/reorganization?

Economies of scale, including board members, staff, operational efficiencies  Click here for more detailed answers.

What happens to the boards?

The existing boards would be combined and run the new district together.  Click here for more detailed answers.

What is the timeline for the election of new board members in the event of consolidation or reorganization?

As terms expire, one seat will be up in the next election until the board has 5 members. No current director will serve longer than their current elected term without facing re-election.  Click here for more detailed answers.

What happens to existing contracts (such as the KPPCSD with KCC and the KFPD with El Cerrito Fire)?

The successor district would assume all contracts and liabilities of the predecessor districts. The contracts would be unchanged.  Click here for more detailed answers.

What happens to the tax revenue from the districts? Would the consolidated/reorganized district keep at least the same revenue as the two districts separately?

Yes, they would probably be combined in full in the new district.  Click here for more detailed answers.

Are there any restrictions on how the combined district could spend its funds?

Yes, for legal and contractual reasons, a combined district (whose annual revenue would be ~$10M), would need to spend at least $4M/year on fire service and at least $1.38M/year on police services.  Click here for more detailed answers.

Are there any boundary issues since the KPPCSD and the KFPD differ slightly in boundaries?

No, it’s one unoccupied parcel (the EBMUD reservoir on Grizzly Peak Blvd).  Click here for more detailed answers.

Are there other CSDs that provide fire and police in CA? in Contra Costa County?

Yes, Mountain House CSD and Lake Shastina CSD. None of the other 5 CSDs in Contra Costa County do.  Click here for more detailed answers.

What does LAFCO require for an application to consolidate/reorganize?

A Plan for Services (how service will be provided) and a financial analysis (showing fiscal viability).  Click here for more detailed answers.

How long is consolidation/reorganization process?

6-12 months once the application is made.  Click here for more detailed answers.

What is the process for protesting a consolidation/reorganization?

After the districts submit their application to LAFCO, there is a hearing where any landowner or voter may protest. If there is a protest, then s a second hearing approximately 30-60 days later occurs. In the interval, protest signature are collected. If more than 25% of voters or landowners protest, there is a special election to determine the outcome.  Click here for more detailed answers.

What are checkpoints during the process when the consolidation/reorganization can be stopped?

Besides the protest process, there are certain points in the reorganization process where the application can be withdrawn. This includes after the transfer of property taxes to the new district was confirmed.  Click here for more detailed answers.

If the Kensington districts would like to continue investigating consolidation/reorganization, what is the next logical step?

Get the financial analysis for the hypothetical combined district.  Click here for more detailed answers.

Lou Ann Texeira also shared some additional information: 

Flow Chart of the Process of Consolidation: https://www.kensingtonfire.org/files/366272960/District+Consolidation+Flowchart+-+San+Diego+LAFCo.pdf

Flow Chart of the Process of Reorganization (Annexation/Dissolution): https://www.kensingtonfire.org/files/096bc2b22/District+Dissolution+and+Annexation+Flowchart.pdf

Detailed white paper on consolidation/reorganization: https://www.kensingtonfire.org/files/09cf24816/Metamorphosis+of+Special+Districts+White+Paper+Updated+July+2021.pdf