____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting:
Disposition:
Agenda Item No: 3.b
Meeting Date: August 17, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Angela Robinson Piñon, Assistant
City Manager
City Manager Approval: ______________
TOPIC: RESPONSE TO THE GRAND JURY REPORT ON SPECIAL DISTRICTS SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE CITY OF SAN RAFAEL’S RESPONSE TO THE MARIN COUNTY CIVIL GRAND JURY REPORT ENTITLED "BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN"
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution approving and authorizing the Mayor to execute the City of San Rafael's response to the Marin County Civil Grand Jury Report entitled "Better Service at Lower Cost — Optimizing Essential Services for the Future of Marin." BACKGROUND:
On June 11, 2026, the Marin County Civil Grand Jury released a report entitled "Better Service at Lower Cost — Optimizing Essential Services for the Future of Marin." The report examines the structure, governance, and service delivery models of Marin County's special districts. It explores opportunities for collaboration, shared services, and consolidation among agencies that provide fire protection, emergency medical services, water, wastewater, sanitation, and other public services.
The report concludes that while Marin County's special districts generally provide average to aboveaverage levels of service, the current structure includes administrative duplication, varying service levels and fees, staffing challenges, and barriers to long-term strategic investment. The Grand Jury recommends increased collaboration among districts, expanded shared services, standardized performance metrics, greater transparency, and exploration of consolidation opportunities where appropriate.
The Grand Jury requested the San Rafael City Council to respond to Findings F1 through F7 and Recommendations R1 through R9.
The City is required to respond to the Grand Jury Report. Penal Code Section 933(c) states in part:
“No later than 90 days after the Grand Jury submits a final report…the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body.” SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
To comply with this statute, the City’s response to this Grand Jury report must be approved by resolution of the City Council and submitted to the Presiding Judge of the Marin County Superior Court and the Foreperson of the Grand Jury on or before September 11, 2026.
ANALYSIS:
The Marin County Civil Grand Jury report examines opportunities to improve service delivery, organizational resilience, operational efficiency, and long-term sustainability through increased collaboration, shared services, functional consolidation, and, where appropriate, formal consolidation of special districts and other public service providers.
The City of San Rafael has a longstanding history of participating in regional partnerships and shared service arrangements designed to improve public services and maximize the efficient use of public resources. The City Council has consistently supported efforts that improve organizational effectiveness while maintaining high-quality service delivery for residents.
The City is currently engaged in two significant initiatives that directly align with many of the themes and recommendations identified in the Grand Jury report.
Marinwood Community Services District and San Rafael Fire Department On May 4, 2026, the City Council considered a framework for the future provision of fire protection and emergency medical services in partnership with Marinwood Community Services District. The framework includes a phased approach comprising amendments to existing shared service agreements, a transition to a future contract-for-services model, and an evaluation of a comprehensive regional service delivery structure serving northern San Rafael, Marinwood, County Service Area 13, and County Service Area
19. On June 15, 2026, the City Council approved the second amendment to the shared services agreement that formalized additional operational collaboration and reaffirmed both agencies' commitment to evaluating future regional service delivery opportunities.
These efforts are intended to improve operational sustainability, workforce resiliency, emergency response capabilities, and long-term service delivery. The initiative reflects the type of functional collaboration and mission-specific service integration discussed throughout the Grand Jury report.
San Rafael Sanitation District Transition
On May 18, 2026, the City Council approved a Separation Agreement between the City of San Rafael and the San Rafael Sanitation District, facilitating the transition of District operations and administrative support functions to the Central Marin Sanitation Agency.
The transition is intended to reduce administrative duplication, improve organizational efficiency, enhance workforce recruitment and retention opportunities, and allow each agency to focus on its core mission while maintaining continuity of service.
Together, these initiatives demonstrate the City's commitment to evaluating opportunities for organizational improvement, shared services, operational efficiencies, and regional collaboration.
Summary of the City’s Response to the Grand Jury’s Findings and Recommendations The proposed resolution and a draft of the City’s response to the Grand Jury are provided as Attachment 1 to this staff report. Please refer to that attachment for more details on the City’s response.
Through its efforts with Marinwood Community Services District and San Rafael Sanitation District, the City has already undertaken actions consistent with many of the recommendations identified in the Grand Jury report, particularly those related to collaboration, shared services, and evaluation of regional service SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
delivery models. Therefore, staff generally agrees with the report's findings regarding the benefits of collaboration, operational efficiencies, workforce sustainability, performance measurement, and longterm planning. Staff recommends that the City Council agree with Findings F1, F2, F3, F5, F6, and F7, and partially agree with Finding F4, recognizing that governance structures may present challenges to consolidation efforts, while noting that motivations and circumstances vary among agencies and elected officials.
Recommendations R1, R3, R4, and R6 are consistent with actions already undertaken by the City and with ongoing efforts to improve service delivery through collaboration and regional partnerships; however, they were directed towards either the County of Marin and/or to independent special districts that are separate from the City and over which the City Council does not exercise any legal authority. Therefore, these recommendations were also deemed “not applicable.” However, staff recommends that the City Council’s responses describe how the City’s efforts support and align with those recommendations.
Staff further recommends that the City Council identify Recommendations R2 and R5 as not applicable because they are directed to the Marin County Board of Supervisors. Staff recommends that Recommendations R7 through R9 be identified as not applicable because they concern governance practices, compensation structures, and policies applicable to independently governed special districts over which the City Council does not exercise authority.
Approval of the proposed response is consistent with the City Council's Three-Year Strategic Plan, including Objective F.2.5, “Support and explore regional partnerships and intergovernmental collaborations to seek efficiencies in service delivery.” COMMUNITY OUTREACH:
No community outreach is required for the City's response to the Civil Grand Jury report. The City Council's consideration of the response will occur at a publicly noticed meeting in compliance with the Brown Act. Following Council action, the response will be transmitted to the Marin County Superior Court and Marin County Civil Grand Jury and will become a public record.
FISCAL IMPACT:
There is no fiscal impact associated with this required response to the Marin County Civil Grand Jury.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the resolution approving and authorizing the Mayor to execute the City's response to the Marin County Civil Grand Jury report.
2. Direct staff to revise the proposed response and return at a future meeting.
3. Provide an alternative direction regarding the City's response.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution approving and authorizing the Mayor to execute the City of San Rafael's response to the Marin County Civil Grand Jury Report entitled "Better Service at Lower Cost — Optimizing Essential Services for the Future of Marin." ATTACHMENTS:
1. Resolution, with attached City Response to the Grand Jury Report RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE
RESPONSE TO THE MARIN COUNTY CIVIL GRAND JURY REPORT ENTITLED “BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN”
WHEREAS, pursuant to Penal Code section 933(c), a public agency which receives a final grand jury report addressing aspects of the public agency’s operations must, within ninety (90) days, provide a written response to the presiding judge of the Superior Court, with a copy to the foreperson of the grand jury, responding to the report’s findings and recommendations pertaining to matters under the control of the governing body; and
WHEREAS, Penal Code section 933(c) requires that the “governing body” of the public agency provide said response and, in order to lawfully comply, the governing body must consider and adopt the response at a noticed public meeting pursuant to the Brown Act; and WHEREAS, Penal Code section 933.05 specifies the required contents of a city’s response to findings and recommendations of a civil grand jury; and WHEREAS, on June 11, 2026, the Marin County Civil Grand Jury released a report entitled "Better Service at Lower Cost — Optimizing Essential Services for the Future of Marin"; and WHEREAS, at a regular City Council meeting held on August 17, 2026, the City Council discussed the report’s findings and recommendations.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby:
1. Approves and authorizes the Mayor to execute the City of San Rafael's response to the Marin County Civil Grand Jury Report entitled "Better Service at Lower Cost — Optimizing Essential Services for the Future of Marin," attached hereto as Attachment 1 and incorporated herein by reference.
2. Directs the City Clerk to transmit the approved response to the Presiding Judge of the Marin County Superior Court, with a copy to the Foreperson of the Marin County Civil Grand Jury.
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael held on the 17th day of August 2026, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______________________
LINDSAY LARA, City Clerk
Attachments:
1. City Response
RESPONSE TO GRAND JURY REPORT FINDINGS AND
RECOMMENDATIONS
REPORT TITLE:
REPORT DATE:
RESPONSE BY:
“BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL
SERVICES FOR THE FUTURE OF MARIN”
June 11, 2026
San Rafael City Council
Pursuant to California Penal Code Section 933.05, the City Council of the City of San Rafael responds to Findings F1 through F7 and Recommendations R1 through R9 to the extent they relate to matters within the authority of the City Council.
GRAND JURY FINDINGS
The City agrees with Findings F1, F2, F3, F5, F6, and F7. The City partially agrees with Finding F4.
GRAND JURY RECOMMENDATIONS
Recommendations R1, R3, R4, and R6 align with work the City is doing, but will not be implemented. They are deemed not applicable because they are directed to the County of Marin and/or independent special districts the City Council does not oversee and which operate outside of their legal authority.
Recommendations R2 and R5 will not be implemented because they are not applicable because they are directed to the Marin County Board of Supervisors, not the City Council. Recommendations R7–R9 will not be implemented because they are not applicable since they relate to governance and compensation practices of independent special districts outside the City Council’s authority.
Date: _____________________ Signed: __________________________ Mayor Kate Colin
ATTACHMENT 1
City of San Rafael Response to Grand Jury Report Findings and Recommendations “BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN” August 17, 2026
City of San Rafael Response to Grand Jury Findings and Recommendations Page 2 of 5
RESPONSE TO GRAND JURY FINDINGS
F1. The current fragmented structure of special districts results in unnecessary duplication of administrative services and operational inefficiencies.
Response: Agree
The City agrees that opportunities exist to reduce administrative duplication and improve organizational efficiency through shared services, regional partnerships, and alternative governance structures that enhance service delivery and provide value to residents.
F2. Some districts perform competently but lack sufficient scale to support long-term strategic investment in infrastructure, technology, staffing, and resilience.
Response: Agree
The City agrees that organizational scale can affect an agency's ability to make long-term investments in infrastructure, technology, workforce development, succession planning, emergency preparedness, and organizational resilience.
F3. Smaller districts are disproportionately vulnerable to staffing disruptions and catastrophic events that could rapidly impair service delivery.
Response: Agree
The City agrees that smaller agencies may face challenges related to recruitment, retention, workforce sustainability, operational continuity, and resiliency during emergencies and other disruptive events.
F4. Although consolidation is a popular idea among many elected board members, current governance structures, absence of board member term limits, and fear of loss of political influence discourage boards and administrators from initiating consolidation even when they recognize its benefits.
Response: Partially Agree
The City agrees that governance structures, organizational considerations, and institutional factors may influence discussions regarding consolidation and shared services. However, each agency operates under unique legal, operational, fiscal, labor, and community circumstances.
Furthermore, the City has not performed any analysis to confirm the popularity of consolidation among Marin County elected board members.
F5. Service and pricing inequities currently exist across Marin and may increase if consolidation and functional collaboration do not accelerate.
Response: Agree
City of San Rafael Response to Grand Jury Report Findings and Recommendations “BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN” August 17, 2026
City of San Rafael Response to Grand Jury Findings and Recommendations Page 3 of 5 The City agrees that opportunities exist to improve consistency, transparency, and efficiency in the delivery of public services throughout Marin County.
F6. Performance metrics for essential, mission-specific services exist but they are not readily available and standardized, which prevents meaningful public comparison of district effectiveness and undermines accountability.
Response: Agree
The City agrees that transparent and meaningful performance measurement supports accountability, informed decision-making, and public understanding of service delivery outcomes.
F7. Without proactive reform, future consolidations are more likely to occur through crisis driven intervention, resulting in greater disruption and higher costs.
Response: Agree
The City agrees that proactive planning and evaluation of service delivery models are preferable to organizational changes driven by financial, operational, or emergency circumstances.
RESPONSE TO GRAND JURY RECOMMENDATIONS
R1. By January 1, 2027, all special district boards should have conducted their first semiannual consolidation exploration meeting with similar districts and will have established a regular meeting schedule moving forward.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the boards of special districts. The City Council does not exercise any authority over the agendas or meeting schedules of independently governed districts. Although the City is not a special district, it is actively evaluating and implementing opportunities for shared services, functional collaboration, and regional service delivery with the Marinwood Community Services District for fire and emergency medical services, and with the San Rafael Sanitation District regarding its transition to Central Marin Sanitation Agency. The City will continue to place informational reports and action items on City Council agendas as necessary to support these efforts.
R2. By October 1, 2026, the Board of Supervisors should direct the development of comprehensive, cost-efficient shared services (such as IT, legal, finance, HR/payroll, harmonized compensation/benefits package, insurance) for special districts to optimize expenses and secure a Marin-wide acceptable quality standard. First limited-service offerings are encouraged to be made available by January 1, 2027.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the Marin County Board of Supervisors.
City of San Rafael Response to Grand Jury Report Findings and Recommendations “BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN” August 17, 2026
City of San Rafael Response to Grand Jury Findings and Recommendations Page 4 of 5 R3. By January 31, 2027, with the assistance of the County, all districts should develop and publish on their website standardized, comparable Key Performance Indicators (KPIs) with regard to service pricing, finance, staffing, operations, and customer satisfaction.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the County of Marin and special districts. The City does not have any authority over the content on independent districts' websites. However, the City supports continued efforts to improve transparency and will participate in future discussions regarding the development of standardized performance measures where appropriate.
R4. By January 31, 2027, each district should publicly update findings and progress regarding consolidation opportunities, and share those findings with the Board of Supervisors and the public on a semi-annual basis.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the Marin County Board of Supervisors and special districts.
However, the City regularly discusses regional partnerships, service agreements, organizational initiatives, and governance matters during publicly noticed meetings and will continue to provide updates regarding ongoing efforts.
R5. By January 31, 2027, the Board of Supervisors should oversee compliance with R1–R4 and update the public on the districts’ performance.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the Marin County Board of Supervisors.
R6. By October 1, 2026, in the process of implementing R1 and R2, districts should prioritize functional consolidation in operations, procurement, training, and administration as a precursor to formal consolidation.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to special districts over which the City Council exercises no legal authority. However, the City has a long history of participating in shared services agreements, mutual aid systems, joint powers authorities, regional training programs, and collaborative service delivery models.
R7. By October 1, 2026, the district’s board compensation, benefits, length of service, date of term end, and expenses related to board work should be clearly and prominently posted on each district’s website and updated annually.
This recommendation is not applicable to the City of San Rafael.
City of San Rafael Response to Grand Jury Report Findings and Recommendations “BETTER SERVICE AT LOWER COST — OPTIMIZING ESSENTIAL SERVICES FOR THE FUTURE OF MARIN” August 17, 2026
City of San Rafael Response to Grand Jury Findings and Recommendations Page 5 of 5 This recommendation is directed to the governing boards of special districts. The City Council does not exercise authority over the websites, governance practices, compensation disclosures, or administrative operations of independently governed special districts.
R8. By June 1, 2027, special districts should adopt term limits of two consecutive fouryear terms for all board members. Staggered implementation of term limits to avoid disruptions is encouraged.
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the governing boards of special districts. The City Council does not possess the authority to establish, modify, or impose term limits on members of independently governed special district boards.
R9. By June 1, 2027, board compensation structures should be reviewed across districts, and considered for adjustment. All components of board compensation should be posted on their website (see best practice example in Appendix B).
This recommendation is not applicable to the City of San Rafael.
This recommendation is directed to the governing boards of special districts. The City Council does not possess the authority to establish, modify, review, or adjust compensation structures for directors serving on independently governed special districts.