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Sanitary District 2 board authorizes LAFCO-led consolidation study and committee
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Summary
Sanitary District 2's board approved a resolution authorizing a consolidation study with Marin LAFCO and formation of a consolidation committee to evaluate potential reorganization with Central Marin Sanitation Agency and neighboring districts; the study is expected to take two to three years and preliminary consultant costs were estimated at $150,000'$200,000 with SD2's share roughly 20% ($30,000'$40,000).
Sanitary District Number 2 (SD2) voted to authorize a LAFCO-coordinated study of potential consolidation with Central Marin Sanitation Agency (CMSA) and the other member sewer districts, and to form a consolidation committee composed of one board member from each district to receive updates and provide feedback.
Staff reported the move responds to renewed interest following an operations-and-management services agreement and that prior consolidation studies had stalled because parties disagreed on structure or outcomes. The staff report and presentation outlined the study scope: evaluate feasible forms of service combination or reorganization, governance and organizational options, financial impacts, labor and employment considerations, and a timetable for any recommended reorganization.
Priscood, presenting for SD2 staff, said initial consultant estimates range from $150,000 to $200,000 for a full study and that SD2's share could be about 20% (roughly $30,000 to $40,000), with additional costs for staff time to manage the consultant and the committee. Marin LAFCO Executive Officer Jason Fried, participating online, said LAFCO will lead the process, mediate disagreements and that successful consolidations elsewhere suggest the approach can work with careful oversight; he estimated the study would likely take two to three years.
A public commenter who had submitted detailed written analysis via email urged postponing the vote and listed ten concerns including workload diversion for SD2 staff, inadequate success criteria in the resolution, lack of independent financial analysis and insufficient protections for ratepayers and climate-adaptation priorities.
Board members discussed the timeline, staff workload and governance consequences and agreed the study should proceed with caution and adequate attention to staff capacity. The board moved, seconded and approved the resolution authorizing the consolidation committee; selection of the board member to serve on that committee was deferred to a subsequent meeting.
What's next: SD2 staff will work with Marin LAFCO to finalize a scope and cost-share agreement, hire a consultant and schedule consolidation-committee membership and meetings; staff will return to the board with details on committee membership and consultant selection.
