BodyBoard of Supervisors
MeetingRegular Meeting
Date📅 May 10, 2011

UnGovr Transcript

iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.
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0:00 – 0:0210 turns

UnidentifiedChairProposed · by role0:00 · ≈ 9:00 AM

Can you hear me now?

UnidentifiedUnidentified speaker 1Proposed0:01 · ≈ 9:00 AM

No.

UnidentifiedUnidentified speaker 2Proposed0:03 · ≈ 9:00 AM

Testing.

UnidentifiedChairProposed · by role0:08 · ≈ 9:00 AM

There we are, welcome to the Board of Supervisors and let me assure anyone that's brave enough to be here today that it's one of those kind of days when people seem to be having a good time and acting like three-year-olds but that's okay because they're intellectually Einsteins no laughing All right. So anyway, we're going to call this meeting to order and have roll call.

UnidentifiedUnidentified speaker 3Proposed0:37 · ≈ 9:00 AM

Ms. Farr? Here. Mr. Lavagnino? Here. Mr Carbajal? Here Ms. Wolf?

UnidentifiedChairProposed · by role0:41 · ≈ 9:00 AM

Here

UnidentifiedUnidentified speaker 3Proposed0:41 · ≈ 9:00 AM

Mrs. Gray?

Pledge of Allegianceceremonial · click to expand · ≈8s recited, not transcribed
UnidentifiedChairProposed · by role0:42 · ≈ 9:00 AM

Present And let's have the Pledge of Allegiance Ready to begin I pledge allegiance

UnidentifiedUnidentified speaker 2Proposed0:50 · ≈ 9:00 AM

to the flag of the United

UnidentifiedChairProposed · by role0:52 · ≈ 9:00 AM

States of America

UnidentifiedUnidentified speaker 2Proposed0:54 · ≈ 9:00 AM

and to the republic for which it stands one nation under God indivisible with liberty

UnidentifiedChairProposed · by role1:10 · ≈ 9:01 AM

Thank you. And it's truly a beautiful day and soon the wind will be gone. Mr. Counsel, do we have a report from closed session?

UnidentifiedUnidentified speaker 4Proposed1:20 · ≈ 9:01 AM

Thank you Madam Chair. The three items conference with labor negotiator one case of anticipated litigation deciding to initiate and one case of anticipated litigation and significant exposure to litigation each of these were heard and there were no reportable actions as reported at the outset public employee performance evaluation had been Continue to next week.

UnidentifiedChairProposed · by role1:43 · ≈ 9:01 AM

Thank you. Approval of the minutes of May 3rd. Is there a second? I will not be voting, I wasn't present. All in favor say aye. Opposed and abstention me. Okay we'll move to the administrative agenda Mr. Allen do we have folks that want to speak on that?

0:02 – 0:058 turns

UnidentifiedUnidentified speaker 1Proposed2:05 · ≈ 9:02 AM

Madam Chair, members of the board. I do not have any requests to speak on the administrative agenda from the public. I just would like to note one request which is item A27. It's from Public Works. The recommendations are regarding the construction of the 2010-2011 countywide preventative maintenance application of scrub scale and microsurfacing and the department has requested that we continue that to a meeting next week on 517.

UnidentifiedChairProposed · by role2:31 · ≈ 9:02 AM

Okay, thank you Mr. Allen. During Supervisor Farr would like to pull off A15 and 16. And discuss those items. Mr. Allen?

UnidentifiedUnidentified speaker 1Proposed2:40 · ≈ 9:02 AM

Madam Chair and members of the board, item A-15 is from the auditor controller. The request that the board approve a budget revisions necessary in order to correctly classify fund balance in preparation for the required implementation of governmental accounting standards board statement number 54 as of July 1, 2011. A-16 is from the county executive office to approve budget revision requests.

GuestLavininoProposed · by introduction3:02 · ≈ 9:03 AM

Supervisor Farr? Thank you, Madam Chair. On A15 I had a question about the CSA32 which was now not going to be considered special revenue fund. I don't know if there's anybody here that can speak to this issue but I'm just trying to figure out what happens to this money now that goes to the Sheriff's Department. It looks like it was transferred in, transferred out, transferred in, transferred out to a number of different accounts so nobody here that can speak to that. Ms. Waller?

UnidentifiedUnidentified speaker 5Proposed3:34 · ≈ 9:03 AM

Yes, if maybe we could trail this item. I understand from speaking from one of the employees of Auditor and Controller that they anticipate their arrival pretty quickly.

GuestLavininoProposed · by introduction3:43 · ≈ 9:03 AM

Okay thank you. And then on A16 has to do with the budget revision to the Agricultural Commissioner's Office for $75,000 And it says that they're going to decrease the salary and benefits designation in order to cover this contractual services for cooperative extension. And I remember this item because it was continued from the budget hearing, and we took action on it finally in August. And as I recall, I thought that that money was coming out of contingency or another fund.

And you know if it comes out of this designation at Agricultural Commissioner's Office Then that's $75,000 less that they have to carry over or to keep somebody employed into the next year or whatever. So is there a way that we can double check on the history of that? Because that's not my recollection.

UnidentifiedUnidentified speaker 5Proposed4:42 · ≈ 9:04 AM

Supervisor Chairwoman, yes, we can check on that to affirm what the direction was and where those are coming from. Let's

UnidentifiedChairProposed · by role4:49 · ≈ 9:04 AM

trail back. We'll move that one. We won't vote on that one today. We'll bring that back next week. Yes please. OK thank you. Thank you. And let's see, I'm trying to figure out how to do this. I have to leave the room on A23. There's a possibility they'll have a conflict. I'm a one-third partner in the law firm of Wittenberg O'Neill and Gray. And the law firm was hired by the Lompoc Housing and Community Development Corporation. My partner saw them, so I think it's wise for me not to be here.

So why don't I ask for a motion to approve the administrative agenda list A23? Is there a motion?

0:05 – 0:1222 turns

UnidentifiedUnidentified speaker 6Proposed5:29 · ≈ 9:05 AM

So moved.

UnidentifiedChairProposed · by role5:30 · ≈ 9:05 AM

Second?

GuestLavininoProposed · by introduction5:31 · ≈ 9:05 AM

Madam Chair, because we're trailing A15 and A16 Maybe we should take those out of the motion

UnidentifiedChairProposed · by role5:38 · ≈ 9:05 AM

as well? Yes, that's true. And just make note of the modification as modified that those are trailed. Is there a second?

GuestLavininoProposed · by introduction5:45 · ≈ 9:05 AM

I'll second

UnidentifiedChairProposed · by role5:46 · ≈ 9:05 AM

it. All in favor say aye. Aye. Opposed? We will now go to A23 and I will leave the room and Supervisor Farr will handle this.

GuestLavininoProposed · by introduction6:02 · ≈ 9:06 AM

Yes, Mr. Allen, would you read A23 please? Madam

UnidentifiedUnidentified speaker 1Proposed6:05 · ≈ 9:06 AM

Chair and members of the board, item A23 is from Housing and Community Development. The request is that the board consider recommendations regarding the Santa Barbara County Home Consortium and CDBG Urban-County Partnership Final 2011 Action Plan.

GuestLavininoProposed · by introduction6:19 · ≈ 9:06 AM

Okay are there any comments from the board on this item? Otherwise I'll entertain a motion to approve. Motion, second? Second all those in favor say aye. Aye. Opposed? Motion carries, thank you. All right Mr. Allen we've completed the administrative agenda there's no request from the public to speak on this.

UnidentifiedUnidentified speaker 1Proposed6:55 · ≈ 9:06 AM

No request from the public on the administrative agenda today.

UnidentifiedUnidentified speaker 5Proposed6:59 · ≈ 9:06 AM

Chairwoman, Supervisor, I noted that the Auditor-in-Control has joined us. So possibly you may want to go ahead and ask your questions related to that item.

GuestLavininoProposed · by introduction7:10 · ≈ 9:07 AM

Thank you. Back to supervisor for that? Yeah, thank you Madam Chair. Yeah back to Item A. Let's give him

UnidentifiedChairProposed · by role7:16 · ≈ 9:07 AM

a chance to...

GuestLavininoProposed · by introduction7:19 · ≈ 9:07 AM

Mr. Geis, thank you for being here. I had a question about A15, also A16. But I think A15 which has to do with CSA 32 it seemed like that was the rest of it was really purely administrative and but CSA 32 looks like it wasn't going to qualify as a special revenue fund and the money kind of got moved in and out of various accounts so I'm just wondering whether you could explain that better? And also how does the money how is the money gonna flow now Since it doesn't flow into the same.

UnidentifiedUnidentified speaker 7Proposed7:58 · ≈ 9:07 AM

So Madam Chair and members of the board so Gatsby 54 does a couple of big things one it creates a whole depth new set of definitions of fund balance. That's one set of issues in a bigger categorization of fund balance that we're working on. This particular issue, it also goes back to some standards that originally existed about what is the real definition of a special revenue fund? And a good example of a real definition of a special revenue fund is the Santa Barbara County Flood Control Districts. So there's dedicated property taxes for the flood control districts that can only be spent on flood control. So those are easy and they easily classify. A couple other examples are we have a unique thing, not a unique thing we do here but we have taken mental health, health and social services out of the general fund and put them into special revenue funds.

They get you know a significant amount of federal and state reimbursements and they get a general fund contribution over but they qualify as a special revenue fund So service area 32 doesn't really have a dedicated source of property taxes. What it was, it was originally put together as a result of a lawsuit prior to Prop 13 that said well we want to try and isolate an account for the cost of sheriff patrol services In the unincorporated area, and so we set up this service area 32 and did this accounting mechanism to keep track of that. But under the new GASB's since that doesn't really have a special revenue source there aren't dedicated property taxes it says you shouldn't use a special revenue fund to do that accounting anymore and it gets rid of this inter front transfer that kind Makes it harder to even understand the county's finances when you're looking at them globally.

So we're going to eliminate that fund. That doesn't mean that the sheriff can't do the cost accounting and keep track of what patrol services are in the unincorporated area, We just won't do that with the special revenue fund accounting mechanism.

GuestLavininoProposed · by introduction10:11 · ≈ 9:10 AM

Okay so it's like over 27 million dollars so it was collected went into the general fund came back out into the special revenue fund and then was dispersed from there but now it's just going to go in the general fund and stay there?

UnidentifiedUnidentified speaker 7Proposed10:25 · ≈ 9:10 AM

Well all we did is took General Fund money, did an accounting entry that put it over in the Special Revenue Fund. And then took Sheriff Patrol costs and took the money back out of the fund so there really was no dedicated revenue source for Sheriff Patrol services. We were only trying to do An accounting mechanism because of this potential lawsuit that happened in 1978 between the city and the counties about spending property taxes generated in the cities on sheriff patrol services Unincorporated area, but really working through with County Council. That's all really gone away We believe the legal theory for that after prop 13 And we just never were able to get rid of this funny accounting we were doing

GuestLavininoProposed · by introduction11:16 · ≈ 9:11 AM

so then is CSA 32 Does it need to stay in existence?

UnidentifiedUnidentified speaker 7Proposed11:21 · ≈ 9:11 AM

You know, that's really a LAFCO decision and maybe something for your board to consider for future policy. Maybe at some point in time we would want to do an additional benefit assessment or some kind of assessment for extended services for Sheriff Patrol especially as we get into a budgetary situation that you know we're really reducing the cost of the Sheriff's Department in next year's budget. So, you know we're saying that's a different issue whether we would rather use the service area to collect a benefit assessment for special services I mean for extended services so I'd leave it in place for awhile and then when we get back on our feet financially we could look at LAFCO and say should we eliminate it?

GuestLavininoProposed · by introduction12:08 · ≈ 9:12 AM

Okay thank you that's

UnidentifiedChairProposed · by role12:08 · ≈ 9:12 AM

very helpful. Thank

UnidentifiedUnidentified speaker 7Proposed12:09 · ≈ 9:12 AM

you Mr. Guy. Ms. Waller

0:12 – 0:1824 turns

UnidentifiedUnidentified speaker 5Proposed12:14 · ≈ 9:12 AM

Chairwoman Supervisor, another reason that you may wish to keep the CSA in existence is at some point in the future it's not uncommon that developers may want to take advantage of it for some sort of enhanced service in their development. So it's a really good vehicle to have there and as a reminder that would take a vote of the people so it's not something that necessarily you or our citizens would have to be concerned with just unilateral but it does leave the vehicle available to those who may wish to utilize

GuestLavininoProposed · by introduction12:46 · ≈ 9:12 AM

And Madam Chair, I see Dr. Stilwell in Santa Barbara. Is he here to help speak to A16? Dr. Stillwell? Oh great.

UnidentifiedUnidentified speaker 8Proposed12:56 · ≈ 9:12 AM

I could provide some insight for A16 if it's the board's interest at this time.

UnidentifiedChairProposed · by role13:00 · ≈ 9:13 AM

I'm interested. Please.

UnidentifiedUnidentified speaker 8Proposed13:03 · ≈ 9:13 AM

So what I'm seeing, I think I can answer Supervisor Farr's questions because I see that the cover sheet for the budget revision request is not consistent with the actual budget revision. So if you look six pages in to the budget revision request number 1338 up on the top right corner, you could see that it's an actual... It's not a transfer from the designation. It's a transfer within the department, an object level transfer And Supervisor Farr is correct. We did go back and look at the tape from the recording from July, the program's $180,000. The department was able to absorb The cost of that by maintaining vacancies, returning vehicles.

They have an additional $75,000 in savings in their salaries and benefit object level. And this is an object level transfer from salaries and benefits to services and supplies because that's where the charge for this program is funded so it's not a release of designation. It's absorbed within the department's current year appropriation. It just switched from salaries and benefits to service and supplies.

GuestLavininoProposed · by introduction14:13 · ≈ 9:14 AM

Well Madam Chair, Dr. Stilwell I thought that when this came to the board that it was going to be funded because there wasn't gonna be enough money in the department budget. That the balance of the money was coming I thought from contingency so from outside the department is that not correct?

UnidentifiedUnidentified speaker 8Proposed14:31 · ≈ 9:14 AM

The discussion with the board at that time did involve the contingency. At that time, the department was able to absorb it and is not requesting or requiring a contingency transfer. So the contingency was the backup plan if the department wasn't able to actually absorb the costs. They are actually able to absorb the cost due to vacancies and reducing expenditures.

GuestLavininoProposed · by introduction14:51 · ≈ 9:14 AM

But what's the board's motion to take it out of contingency?

UnidentifiedUnidentified speaker 8Proposed14:55 · ≈ 9:14 AM

Yeah, we did look at the tape and there was a discussion to take it out of contingency and CEO Brown interjected that the department could absorb it. And it seemed like that was what the final board's direction was to have the department absorb it or take it from contingency if unable.

GuestLavininoProposed · by introduction15:17 · ≈ 9:15 AM

Well... Do you need to

UnidentifiedChairProposed · by role15:18 · ≈ 9:15 AM

look at the tape?

GuestLavininoProposed · by introduction15:19 · ≈ 9:15 AM

Yeah, I don't know. I guess Dr. Stilwell, CEO Waller my recollection is that you know the department did as much as they could and that we said that because of the complications of this contract and all that that the rest would come out of contingency. The fact that the department has done such a good job with their budget this year and now has this money available I think is a policy discussion for the board because it seems to me You know, if they were initially relying on the fact that the $75,000 would come from another source outside the department then it's only fair for us to follow through on that. Because especially now with the idea that if you have reserves left over in something like this that they could be carried over into next year that could be of significant help to them as they go into their next year's budget so...

And again, I'm concerned about what action the board took now being turned into something else. Thank you Madam Chair.

UnidentifiedChairProposed · by role16:19 · ≈ 9:16 AM

I'm not sure where we need to go with this.

UnidentifiedUnidentified speaker 5Proposed16:23 · ≈ 9:16 AM

Chairwoman, Supervisor, we can certainly review the tape. I think that really though at this point it's a sort of a new decision for you in that you can certainly choose to use the reserves and the reserves will be lessened or you can choose to take it from the department. Any excess dollars that are in the department that are general fund would actually flow through to fund balance so I guess what I'm suggesting is it really comes to the same place when the day is done. But it seems as if

UnidentifiedChairProposed · by role16:55 · ≈ 9:16 AM

Supervisor Farr's point is the board made a distinctive decision and that was being not followed out. So I think that my suggestion, and the rest of you... My suggestion is Supervisor Farr looks at the tape, sees if she feels there was a hard motion, and then we bring up the act that there was a hard motion made by the Board of Supervisors to take it from contingency and put it in AG And do we vote to change that? Because isn't that where you're headed here?

GuestLavininoProposed · by introduction17:28 · ≈ 9:17 AM

Yes, Madam Chairman. It's kind of two issues you know one is the financial issue and you know what the department has but the other is I think you know what the board's actual motion and decision was and is that kind of being countermanded? So why don't you sit down

UnidentifiedChairProposed · by role17:42 · ≈ 9:17 AM

with Mr. Stilwell and the two of you take a look at it see if you come where you come to and then we'll go from there okay done deal thank you thanks for bringing

UnidentifiedUnidentified speaker 9Proposed17:49 · ≈ 9:17 AM

that up Supervisor Wolfe so um so we can move on these other budget revisions if I can make a motion on this Yes, this is A16 that we move forward and approve all budget revisions except transfer number 0001338. All in favor?

UnidentifiedUnidentified speaker 1Proposed18:08 · ≈ 9:18 AM

Aye. Do you want to include

UnidentifiedChairProposed · by role18:12 · ≈ 9:18 AM

A15 as well? Sure. A15 also? And approving item A15. Is that alright with everybody? Okay all in favor again say aye. Mr. Allen have we completed? The administrative agenda. No more

UnidentifiedUnidentified speaker 1Proposed18:23 · ≈ 9:18 AM

requests

UnidentifiedChairProposed · by role18:24 · ≈ 9:18 AM

to speak on the

UnidentifiedUnidentified speaker 1Proposed18:24 · ≈ 9:18 AM

administrative

UnidentifiedChairProposed · by role18:25 · ≈ 9:18 AM

agenda. No more discussion? Okay, then let's go to I believe it's board member reports. Supervisor Farr

0:18 – 0:254 turns

GuestLavininoProposed · by introduction18:35 · ≈ 9:18 AM

why don't you start. Actually, I just mainly wanted to report on attending the press conference and meeting that happened yesterday at St. Mark's Church in Los Olivos for the Common Ground point-in-time count for the homeless. It was a wonderful presentation. Rob Fredericks from the City of Santa Barbara Housing Group, our own Dr. Wada from Public Health and many others, Sharon Friedrickson from HCD all spoke and then there were a lot of people in the audience asking questions but they gave the details of the homeless count and the collaborative effort that it took you know 500 volunteers from all over the county that went out Over those few days and it was an incredible effort, collaborative effort between county governments, city governments, non-profits in the philanthropic community.

And going forward with that information as far as putting a plan in place to try to house the top 100 most vulnerable on the list is again going to be a collaborative effort from all of those groups. And so I'm looking forward to more discussions between Homeless advisory committees throughout the county, the Bring Our Community Home group and many others as we look to kind of coordinate all of this information in one place so that we can best serve this population. Thank you Madam Chair. Thank you. Supervisor Wolf?

UnidentifiedUnidentified speaker 9Proposed20:09 · ≈ 9:20 AM

Oh thank you Chair. I attended the Partners in Education breakfast in Santa Barbara Supervisor Carbajal was there. It's always a great way to start the day, which is a way to recognize students in our community from all of the high schools and a lot of the work that they've done primarily in vocational education which oftentimes gets overlooked so it was a great morning.

Later that evening I went to Flows To The Ocean family night at the Watershed Resource Center That's located in Arroyo Burro Beach, and it gets quite a bit of visitation from kids. And it was a wonderful art show. Later that evening I went to the Sister Cities Friendship Dinner, our sister city Puerto Vallarta, and they honored Jan Passerly-Olivas who has just been an amazing community volunteer And then many of us attended the UCSB Economic Forecast, which always proves to be an exemplary program. That's going to be rebroadcast on Cox. I don't have the times but at least a portion of it is.

I also attended the Los Robles High School graduation and Salud Carbajal was the keynote speaker. It was quite a... Always one of my favorite events to go to Very moving and Supervisor Carbajal did a wonderful job, and I thank him for his comments. It was very heartfelt and very good. I also went to the Food Bank Feeding Our Future and Ending Our Hunger event And then at the end of that night, I went to the Cumbria Junior High School Foundation dinner.

That was to benefit literacy performing arts and healthy lifestyle and fitness programs. And again, Salute was there we must have been on the same trail. He was the king. That night, he was dressed as the king and he asked me what title I wanted. And I was thinking of the wedding, the royal wedding, and I know that the princess is not called a princess she's the duchess so I said I'd like to be called the Duchess of Goleta. So that's how...

Yes, I was anointed. Then on Saturday was the train day press conference. Very cute, a lot of kids there and they did a great event. And then there was the Mesa annual spring festival which is amazing to see what goes on in the Mesa. I think that community has really come together and they just do an amazing job of bringing the community together. It was lots of fun. I went out of my district and visited the Carpinteria Arts Artist Festival, and was so impressed by what the Carpinteria community has done.

And then went out of my district again up to Up to the Tipton Meeting House at Sedgwick Ranch to see the Thompson Naylor Architect LEED building. And then, at the end of the day on Saturday I went to the National Charity League TikToker presentation where there's an organization in Santa Ynez and one in Santa Barbara The NCL program in Santa Barbara covers all of the high schools in the South Coast and they honored all of the girls. I think there was 21 graduating seniors, and to see and hear what these women, young women have done volunteering almost 5,000 hours of community service along with their mothers it was just awe-inspiring. It was a great way to end the week Just to see what there's so many things that are going on in our community.

So thank you. Wow,

UnidentifiedChairProposed · by role24:03 · ≈ 9:24 AM

thank you. Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed24:06 · ≈ 9:24 AM

Thank you. With redistricting coming up the supervisor Wolf is doing a lot of visiting of other districts. I'm sure she's shopping around or something. I too had somewhat of a... You never know what the tea leaves hold. That's right, I too attended the Carpinteria actually the Cumbria Junior High School event it was a wonderful event Supervisor Wolf was there with me as well.

I attended the Los Prietos Boys Camp Los Robles high school graduation And I also attended the Visiting Nurses and Hospice Mother's Day luncheon that they had at the Biltmore. The CERT program in Carpenteria, I had their graduation. And also, I attended the Partners in Education along with Supervisor Wolf and others. And of course, I went to the economic forecast where we got slightly better than usual news but still not The best positive news that we'd like to hear in terms of the economy, but at least it seems that it's getting a little better for everyone.

0:25 – 0:323 turns

UnidentifiedChairProposed · by role25:27 · ≈ 9:25 AM

Supervisor Lovadino.

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.6525:28 · ≈ 9:25 AM

Thank you, Madam Chair. Let's see I got to spend some time with Chief Dyer and took a ride along with him and visited all of the North County fire stations and the chief actually took me around it was when it was 90 degrees in his car has no air conditioning and so I don't know if he did that on purpose during budget time but yeah I also attended the Elk Student and Citizen of the Year Awards Dinner, and just want to congratulate the Elks. The Santa Maria Elks Lodge does a great job in honoring our youth, and the Citizen of the Year this year was Michael Clayton, local attorney. Attended the National Day of Prayer at Santa Maria Fair Park, and we all got together and prayed for our government leaders which I think we can all, we all know we need that.

Did attend the UCSB Economic Forecast. We also had one at Hancock College. Dan Walters was the guest speaker. And as you said, a little bit of positive but I think I've seen the same economic forecast for the last five years so I'm not really have too much confidence. Also got to tour in the new 50-bed facility inside our Santa Barbara County Jail with Sheriff Brown which will be opening soon and will help alleviate some of the overcrowding.

And over the weekend, I had a chance to go outside my district. And I went down to Simi Valley and toured. I got to do the Reagan Library. And regardless of whatever political persuasion you are, I would recommend it to anybody. I spent about 2 and 1 half hours there, and it was not enough time. Very inspirational. And also next week, I just want to let everybody remember that we have an open house here for the 5th District Office It's on Thursday from 4 to 6 p.m., so all are welcome, all are invited. I will provide cookies. I think that's all I can afford at this point, so thank you.

UnidentifiedChairProposed · by role27:27 · ≈ 9:27 AM

Thank you very much. First of all, to thank everyone. I'm sorry that I missed last week and I thought y'all did a great job without me but the profound lesson in that was the ability to watch it in real time right in your own home And it feels different when you're not in the room. I mean, kind of the emotion stuff isn't there. You watch and you learn and it just again reminded me of the tremendous change in technology from what the board used to be where You had to actually be in the room to know what was going on, and most of the time you had to spend an hour in the car to get there. So that was interesting, and thank you. And what an experience! What an experience.

I did as your representative to CSAC, I attended the executive board. I represent the suburban counties, that's the middle-sized ones. I went to Sacramento And I listened to one of the governor's assistants tell us for 45 minutes that she really didn't have any answers. So, I kind of was thinking why am I even here? Because you know it was time and money and I'm supposed to be representing but it was basically We don't know. So that was the message and I'm sorry to deliver that one.

One of the things I did learn, and I've talked to Terry Mosnage about this is there is a new AB 1220 which could be devastating to counties. It extends the statute on the housing element to five years instead of one year. So surprisingly, we didn't hear it from our lobbyists on that one but it just seemed kind of popped up for everybody so I know we're looking into it but what we would need is a have a five-year statute of limitations on the housing element instead of one. We struggle with that as it is and this one was My life as I grew up in Santa Maria, which is totally a small town. I can't even tell you how small.

Pretty much revolved around an organization called 4-H and I think I've mentioned that to you before but the executive director for the County of Santa Barbara was this incredibly remarkable woman named Josephine Van Schack And Josephine functioned in what I would call the intellectual part of the city of Santa Barbara, but her chore was to go into the outback like Santa Maria and Lompoc and Orca and even Goleta and try It was a small town then, it was. So it was Josephine's task and she had such a huge impact and I thought it was just on me but I attended her birthday party. She died two months ago so they had a birthday party for this remarkable woman and folks got up and spoke about how Josephine told them, helped them and made them who they were today.

And all of us 4-H kids were together. Now I want you to know that the average age of those kids was 70 years old So us 70-year-old kids were there celebrating the life and times of Josephine Shack. She basically, she worked with Julia Child, she just did all kinds... a remarkable woman. I also got to watch the ride of the Rancho Vistadores 750 horses in 30 carriages? That's a lot of horses! So I stood and watched that it was very interesting and then yesterday We completed the athletic roundtable for the year. It was marvelous, we had 85 young people there Wednesday night the 18th will be doing the final and it's like Supervisor Wolfe was saying it's so good for us and exciting and motivating to see what young people can do I mean, you know when they've got a 4.5 average in there?

One kid had never lost a tennis game in the league. Mr. Gray, how many had he won, 106? Mr. Gray forgot to play him by the way in tennis. But is that amazing? Never lost a tennis match, 160 some tennis matches. And he'll be going on to college and what a remarkable group of folks. So I mean sometimes I totally love being able to give these board reports because we really do have a great job in many ways.

So that concludes the board reports. Thank you all. And now we're gonna go to public comment and I know Dr. Wada wanted to say something. He sent me an email so let's start with Dr. Wada.

0:32 – 0:3910 turns

UnidentifiedUnidentified speaker 10Proposed32:34 · ≈ 9:32 AM

Thank you Madam Chair, members of the Board. I am speaking today in recognition of Nurses Week which runs from May 6th to May 12th which is the birthday of Florence Nightingale, the founder of Modern Nursing. Nurses play a vital role in our public health department and across the county and across the country as medical providers, teachers, educators, facilitators, researchers and leaders Working day in and day out in very challenging environments, in homeless shelters and our medical clinics. Doing prevention activities, home visits and disaster preparedness. Our health care system cannot function without the valuable contribution of nurses and their service to the county is certainly appreciated. And I'd like to pass it on now to Sandra Copley who's our Director of Nursing and Public Health Department.

Thank you.

CommentSandra CoakleyProposedself-stated33:23 · ≈ 9:33 AM

Thank you Madam Chair and members of the board. My name is Sandra Coakley, I work as the Maternal Child and Adolescent Health Director also in Child Health Disabilities Program. This is National Nurses Week and we had a board resolution that didn't get through so we're doing a public comment on this. This week's theme is Trusted to Care and I'd like to commend the expertise, compassion, dedication and excellence at the Santa Barbara County Public Health Department RNs and RN public health nurses These nurses work with our most vulnerable populations. They work in the primary care health care centers throughout the county with very challenging cases. They work in home settings with women, children, infants and teens. They work with the homeless population, investigate communicable diseases, administer immunizations Assure medical services with children with physical limitations and chronic health conditions.

And they are the nurses that have been called upon and will be called upon when a disaster occurs again. Our public health department nurses provide excellent service, and they reduce the incidence and severity of illness in our community. They are the medical safety net. Thank you for honoring the profession of nurses and nurses at Santa Barbara County Public Health Department.

GuestLavininoProposed · by introduction34:51 · ≈ 9:34 AM

Supervisor Farr. Madam Chair, I just wanted to say that you know my mother is a nurse she got her training during World War II during the cadet nurse program first worked in the Veterans Hospital after World War II taking care of all the The injured vets and then went on to work in various doctor's offices and hospitals in all departments, but particularly on the surgical floor. So I grew up understanding what a difficult job it is and how vitally important it is also. And so I really appreciate the ability to honor all nurses including my mother.

UnidentifiedChairProposed · by role35:26 · ≈ 9:35 AM

That's wonderful. Thank you Supervisor Faulkner. You know, it is amazing too and this seems trite to say but I mean this sincerely in that people don't just get sick from eight to five. So when you become a nurse it's 24-7 365 days a year. That's just an amazing thing so thank you Dr. Wada for bringing that to us today. Mr. Allen do we have any other public comments?

UnidentifiedUnidentified speaker 1Proposed35:50 · ≈ 9:35 AM

Yes Madam Chair and members of the board we have about six additional speakers starting with Darrell West to be followed by Gwen Wood

CommentDaryl WestProposedself-stated36:03 · ≈ 9:36 AM

Good morning. We're going to come up as a group, I apologize for they just haven't submitted their request to speak. My name is Daryl West. I'm the agency director for Addis Healthcare of Santa Barbara County and it's interesting that we would be following words so wonderfully spoken about nurses. With your permission I have What I'd like to introduce to all of you, they're called County 293s. So I'd like to paint a picture of two of the very, very frail seniors that we serve and I have our county handbook that outlines what these chores and duties are. May I give it to someone to discuss? Sure, why

UnidentifiedChairProposed · by role36:51 · ≈ 9:36 AM

don't you just hand it to Mr.

CommentDaryl WestProposedself-stated36:53 · ≈ 9:36 AM

Allen. The green forms actually are, I eliminated the name of the individual. Shows a couple of the clients that Addis Healthcare has served for many, many years and then the green handbook will detail exactly what that means. I thought you might like to take a look at some of the services that we provide. Many of our home care aids have been with the same client for many, many years.

And if you look through there you will notice that and I'm reading also from the County of Santa Barbara budget and this budget that we have actually outlines in very, very specific detail all of the things that our home care aides have done And as you go through here, you will notice and excuse me for being so blunt here. There's a whole section on bowel and bladder care and it goes into detail about cleaning bedpans, about cleaning the individual, about changing diapers. There is another section about feeding those same very frail homebound clients If you have lived in a bed for years and you have some trusted individual come in and change your diaper, and feed you I think you can get a sense of the very close relationship that senior has with that care provider.

And what has been proposed to us is that by the elimination of agency mode, we will have These same home care aides asked to leave our company where they have had sick and vacation and holiday benefits. And receive, many of them, a cut in salary of almost $2 an hour to do the same exact work And the work, as I have given to all of you, you can actually look at their 293s and see what is required. And you can look at... I'm sorry. Thank you for your time.

UnidentifiedChairProposed · by role39:23 · ≈ 9:39 AM

Mr. Allen who's next?

UnidentifiedUnidentified speaker 1Proposed39:25 · ≈ 9:39 AM

Our next speaker is Gwen Wood. To be followed by Lisa Landry.

0:39 – 0:453 turns

CommentGwen WoodProposed39:44 · ≈ 9:39 AM

Good morning Madam Chair and members of the Board. In the April 28th edition of the Santa Ynez Valley Journal, it announced the development of Creekside Village in Los Alamos. Creekside when completed will be a 9 building 39 unit income restricted housing development that will give preference to local residents working in agriculture. This project will undoubtedly aid illegal immigrants because as the article states, it will give those working in agriculture preference. Preference over our war vets, disabled and senior citizens. This is an outrage especially given the fact that Santa Barbara County ag growers recently boasted of record profits to the tune of $1 billion this year And therefore, these employers should be paying to house their workers out of their own pockets.

You may ask how do you know some of the ag workers about to be housed in this project might be illegal? My response one can easily make that assumption based on the fact that Santa Barbara County Ag growers don't use E-Verify so there is no way of knowing their immigration status let alone their criminal history Today I handed you a document that shows the number of outstanding felony and misdemeanor warrants for areas of our county. At present, the City of Santa Maria has at least 959 outstanding felony warrants and over 8500 outstanding misdemeanor warrants.

I believe the bulk of these outstanding warrants are for those who are in our country illegally because so many of the illegal aliens use multiple aliases and are repeat offenders, and they know they have nothing to lose. But even after being confronted with the escalating crime stats that I just handed you, Santa Barbara County still plans to move full speed to finish this project and give ag workers first preference.

According to the Veterans Affairs and Census Bureau, veterans make up one in four of our homeless across the U.S., and it is not just a major problem amongst middle-aged and elderly veterans either. Younger vets from Iraq and Afghanistan are trickling into shelters and soup kitchens seeking housing, treatment and jobs. An estimated 200,000 veterans are currently homeless and California leads the nation in the number of homeless veterans.

Creekside Village should be offering housing to US citizens first, including our veterans. And Santa Barbara County should not be in the business of aiding and abetting illegal aliens and using tax dollars to make its residents unwitting accomplices to this crime. Thank you. Thank you Ms. Wood. Mr. Allen?

UnidentifiedUnidentified speaker 1Proposed42:18 · ≈ 9:42 AM

Our next speaker is Lisa Landry to be followed by Cesar Chavez.

CommentLisa LandryProposedself-stated42:27 · ≈ 9:42 AM

Good morning, Honorable Chair and members of the Board of Supervisors. My name is Lisa Landry. I'm the President and Chief Financial Officer of Valley Compost and Topsoil located outside the town of Buellton. Over our 27 years in business as a family-owned business we alone have recycled over 162 thousand tons of ag waste which is A large contribution to our community and our county indeed. We're the only private composter listed in the county's SRE document, source reduction recycling, the non-disposal facility element and the county's fighting element. All those documents the county uses to identify to the state how the county is meeting AB 939 state recycling goals set at 50% now and moving up to 75% soon. These goals cannot be met without recycling organics and goals if not met by the county And city and each in the state will impose $10,000 a day fines.

With this short speech of our few accomplishments all done without county contracts I'm here to ask today for your help. In the last two weeks I have been notified by the planning and development department that they have recently changed the uniform rules for agricultural. Agriculture to allow composting in ag-preserved zones like the one we have been composting in now for 27 years.

With this change comes a 14 page minor CUP application which I have filled out with me today and a price of $4,520. A heavy price to pay to allow us to continue our recycling efforts and especially in today's poor economy. I'm here today this morning to ask your board to add us The agenda item in the very near future, so I may have my chance to show you our value more thoroughly and ask that you approve a waiver of the heavy price of $4,520. Or at least allow us to pay the fees imposed back in 1983 When we came to the Planning Department looking for a minor CUP, to submit only to be told there were no regulations and to go ahead and continue to compost.

But in 1992 the same planning development department put our facility in violation of the regulations that did not even exist. Even at that time, we could still not even apply for a minor CUP as there were no ordinances to allow or disallow composting. These new regulations just came about in 2009. In 1992, VCT proceeded with permitting our facility with the State of California upon our move to our current Ag Preserve Composting Facility. Since then, we are inspected quarterly from the Environmental Health Department with no problems. It's been a long road. We just want to continue to do what we've been doing for a long time now And we need your help. Your board is my last stop for help, for my small business that does big things. Can I rely on your help?

Will you please put me on your agenda so we can have more time to discuss this issue? Staff tells me you are my only hope. They do not have the authority to make this decision. We consider our business to be green before it was regulated by the state of California. Farmers have been composting on ag land for centuries. We need your help. Thank you.

0:45 – 0:5627 turns

UnidentifiedUnidentified speaker 1Proposed45:41 · ≈ 9:45 AM

Our next speaker is Cesar Chavez, to be followed by Stephanie Eppert.

CommentCesar ChavezProposed45:53 · ≈ 9:45 AM

Good morning members of the board. We have an order that we wanted to stick with, if that's okay with everyone. Yesenia DeCalcos who is the Regional Coordinator for UDW AFSCME Local 3930 would like to start our...

UnidentifiedChairProposed · by role46:08 · ≈ 9:46 AM

Why don't you just line up and do it how you want to do it?

CommentCesar ChavezProposed46:10 · ≈ 9:46 AM

Okay.

UnidentifiedChairProposed · by role46:11 · ≈ 9:46 AM

All right.

CommentCesar ChavezProposed46:11 · ≈ 9:46 AM

Thank you.

CommentYesenia DeCasalProposedself-stated46:14 · ≈ 9:46 AM

Thank you. And good morning to all the members of the board. My name is Yesenia DeCasal, like it was stated and like Cesar said I'm a union representative for the 2,000 home care workers that take care of the elderly and disabled here in Santa Barbara County both through the IP mode and the agency mode with Addis Healthcare which Daryl spoke about earlier. Ever since the county department of social services here in the county proposed Not renew the Addis contract and decided to start transitioning our Addis workers to that IP mode.

We started receiving phone calls because we are their union, and visits to our office. And members are coming to us and we hear it very often, the words there must be something that can be done. Unfortunately is off our hands and while we've been telling them that the only people that can do something about it are their five supervisors. In that all we can do is make sure that they're aware, that they're well informed and prepared To examine and scrutinize the budget of the Department of Social Services before they vote on it. So what we've been doing is as people come to our office or they call us, we ask them to either come here and testify or if they are not able to because they got a work today that they write a statement that will be faxing to your offices and we would like to read a few today for you.

So one of them from... Would

UnidentifiedChairProposed · by role47:54 · ≈ 9:47 AM

you mind just kind of Telling us what they say instead of reading them that makes it better for us. Sure,

CommentYesenia DeCasalProposedself-stated47:59 · ≈ 9:47 AM

okay? Yeah, this one's a little bit long so This worker has been without in 17 years taking care of the same client She makes 1087 an hour So she would be going down in wages and one she says she's very concerned about the health insurance Addis clients are transferred because she has health issues and takes medication. She mentions there's a waiting list on the IP mode of 60 plus people, so she is concerned to go even a day without health insurance.

Number two, she's concerned about the cut in pay. Number three, she's also concerned about the driving that she does for clients. She does shopping and she's wondering if the state or the county is going to cover her with insurance or reimburse her for mileage when she does that driving. Number four, she's also concerned about having enough money to have to pay for the fingerprinting and requirements that will be asked of her when she does transfer. And concerned about her client when she's not there. So thank you for your time. Appreciate

UnidentifiedUnidentified speaker 6Proposed49:11 · ≈ 9:49 AM

it. Madam Chair?

CommentYesenia DeCasalProposedself-stated49:13 · ≈ 9:49 AM

Yes.

UnidentifiedUnidentified speaker 6Proposed49:13 · ≈ 9:49 AM

I don't know if you can hear me. How are you saying? Hi. I know the work you guys do is terribly important and very difficult. But I guess maybe I didn't understand, you also represent the non-AIDS workers? Yes we do. Because I was wondering I know that most of the advocacy seems to be on behalf of ADDIS. How you explain to the registry workers who do the same job but do it for a lot less, how you reconcile the higher pay for a few versus the lower amount of pay for a lot of other people? How do you reconcile? You don't need to answer it.

It caught my attention when you said you represent both ADIS and non-ADIS workers. And yet, ADIS obviously gets a little bit better compensation benefits but the rest of the registry don't so there's a big difference.

CommentYesenia DeCasalProposedself-stated50:06 · ≈ 9:50 AM

I'm glad you bring that up because we have a few comments to make about the county's proposal to lower the IP counties wages by a dollar. lower it by a whole dollar an hour, nine dollars an hour which they already make very little and that you know we have somebody to talk about that today. But we're always striving to get the benefits that Addis has for all 2,000 providers.

UnidentifiedUnidentified speaker 6Proposed50:29 · ≈ 9:50 AM

That's our goal. Thank you.

UnidentifiedUnidentified speaker 11Proposed50:32 · ≈ 9:50 AM

Who is next?

CommentCesar ChavezProposed50:36 · ≈ 9:50 AM

Thank you for raising that. I know it was kind of split

UnidentifiedChairProposed · by role50:39 · ≈ 9:50 AM

there. That's okay,

CommentCesar ChavezProposed50:42 · ≈ 9:50 AM

we can adjust. Great. So my name is Cesar Chavez. I'm the union rep for UDW Asking Local 3930 here in Santa Barbara County and I'm directly in contact with Addis members every day who phone into the office and basically want to find out what's going on with Addis. Some of these workers have been doing this job believe it or not for over 35 years They're dedicated to their job.

They'd be passionate about caring for people, the people you represent in the community and that's why they've been doing it for such a long time. I mean there is so much as a union rep and that knows the work that they do, there is so much that goes into home care and the work that they do for the little pay that they And then for them to have to face the situation of doing the work that they're doing now. And both at the age that they are, because we're also talking about I don't know like the exact statistic but this is a largely all women workforce and a lot of them are in their 40s and their 50s some in their 60s So for them to have to consider the possibility of not only, like Yesenia mentioned, going to $10 an hour but the proposal that we hear is on the table from the county of lowering that wage now to $9 an hour.

You're talking about basically taking away something that's close to a living wage in this county for 80 plus working women to $ 9 an hour which would basically be a poverty wage to a certain extent. So there's a lot of things that are on the table with this contract and And I'd like to just have two letters here that we're going to be faxing to your offices, like Yesenia stated.

But one worker here has been working with Addis for 21 years. She currently makes $11.87 and she's concerned because basically with the Addis contract they have health benefits if they're already on but again as she had mentioned there is a 60 person waiting list and since she's on medication she faces the risk of not only Doing more harm to herself as far as her health, but also not having to apply for other social services through the county. So in the sense of we're looking at a lot of people now applying for social services because they're about to drop in wages and a lot of these people are on fixed incomes.

Again like she stated she's worried about what type of benefits she's going to get. The waiting list it can take up to a year maybe two years And making $9 an hour. The second worker for Addis has been working there for 30 years and she is concerned she will not have insurance, no sick leave, no vacation, no reimbursement for mileage, and on top of that she feels that basically she's going to have to apply for food stamps She goes, there's no buts about it. If this contract is not extended, basically she's going to apply for social services which is going to cost the county even more money in the long run and not really alleviate the problem of trying to balance the budget. So that was...

UnidentifiedChairProposed · by role53:45 · ≈ 9:53 AM

And

CommentCesar ChavezProposed53:46 · ≈ 9:53 AM

yeah, and she's basically have to decide whether or not she's gonna get

UnidentifiedChairProposed · by role53:52 · ≈ 9:53 AM

Thank you. You know we're not going to go on and on here, so let's have someone else have their turn. Sure. Thank you.

UnidentifiedUnidentified speaker 6Proposed53:57 · ≈ 9:53 AM

Madam Chair. Yes? Cesar, I sure hope you guys are taking your advocacy to the state. As you know local governments have limited funds in the State of California is... And we won't

UnidentifiedChairProposed · by role54:10 · ≈ 9:54 AM

ask you for an

UnidentifiedUnidentified speaker 6Proposed54:10 · ≈ 9:54 AM

answer on that. ...has reduced our resources, so we're somewhat strapped. We have a $72 million challenge that we have locally, so were trying to grapple with those issues. But I want to show you that I know the kind of job you do. I worked for a friend of mine, we became friends. He was a quadriplegic and his name was Henry Reed and he worked at City College for many years and he was just an extraordinary individual so I say that to honor him because...and to let you know that I am aware of the hard work you guys do. Thank

CommentStephanie EppertProposedself-stated54:43 · ≈ 9:54 AM

you Supervisor. Next speaker? Hi, my name is Stephanie Eppert and I'm a member of the Chapter Board for the Santa Barbara County UDW Workers 2000 members. I'd like to address the possibility of the hour cut. I see what you mean because I wonder, you know they're at us, I'm IHSS but all in all we're probably living on the standard that I took a 3.6 hour cut across the board that put me okay, I lost a client, I lost so much with my daughter who I've only been with IHS for four years because at 50 I just couldn't take her to work, I couldn't be off, I couldn't juggle her around And with the hour 3.6 rate cut across the board, I started getting all my eviction notices. I try to adjust from the car payment or the home. This is just this year's eviction notices because I have to take them around at a dollar cut that with the client I lost and an hour less I lose over five hundred dollars.

There is no more house and there isn't the car that puts us in the homeless list, so I would just like to have you know what my fear is about our cut and where it puts us. Where does that put us? Thank you. Thank you so much and good luck to you Mr.

UnidentifiedChairProposed · by role56:02 · ≈ 9:56 AM

Allen.

UnidentifiedUnidentified speaker 1Proposed56:02 · ≈ 9:56 AM

Our final speaker's Claire McDonald I believe unless...

0:56 – 1:015 turns

UnidentifiedChairProposed · by role56:09 · ≈ 9:56 AM

Oh Claire

CommentClara McDonaldProposedself-stated56:14 · ≈ 9:56 AM

Good morning. My name is Clara McDonald and I have worked for Anna's Healthcare for 34 years in the IHSS program. I enjoy doing what I do And I've had a lot of wonderful clients over the years. I'm here because I am worried about you not continuing the contract mode and there's two reasons, my course personal and then I'm also concerned for my clients. Personally, if you do go down to $9 an hour, I will be losing $3 an hour off my pay.

There will be no insurance. As they say, there's a waiting list and it does come down to the fact what do you pay? Are you going to be able to buy food this month or whatever? Things like that but my other concern also is For the clients, because I did go through the orientation already. And I asked the question what happens if I'm sick? And the answer was well is your client capable of understanding that you're sick and I said yes and he's going to want somebody. He has somebody every day.

And it was basically left up in the air well then he's gonna have to find somebody. And i didn't like that question so I spoke to the social worker when she came to visit him, and she said to call and ask the question again. And basically answer I got is there's nothing set up if we are sick. You know who do we call? Who do you know with Addis, I can call the Addis office and they will send somebody.

There's no worry, nothing. So that really concerns me and then again for myself you know I won't have insurance. I will probably have to go get Medi-Cal. Food stamps are a real possibility and it does as Cesar tried to say it comes down to whether I buy gas for the car or food or pay a bill and that's basically how it's going to do because I'm the only one Working, you know I have to take care of myself and so you know those are my two concerns. And I really hope you will think about it and reconsider. You know I know the budget's important to everybody but just please reconsider and keep the contract mode.

Thank you.

UnidentifiedChairProposed · by role58:31 · ≈ 9:58 AM

Thank you Mr. Allen we have some folks in Santa Barbara you just indicated?

UnidentifiedUnidentified speaker 1Proposed58:35 · ≈ 9:58 AM

Yes Madam Chair we have some speakers in Santa Barbara starting with Jeff Bard to be followed by Lynn Windred.

CommentJeffrey BardProposed58:45 · ≈ 9:58 AM

Good morning, Madam Chair and members of the board. As you know I wear many hats one of which is Upland Research Science Action which started in 1999 as turtle protection and most recently testified at Fish & Game and took part in successfully taking action against the import of invasive turtle species that were harming our native species. I'd like to compliment the very capable Long Range Planning Department on its work toward a climate action plan for the county.

They are sponsoring a very open public participation process and all points of view are being held. And whether one reads Conscience of a Conservative, attributed to Barry Goldwater or Conscience of a Liberal written by Paul Krugman. Whether one is a John Kenneth Galbraith liberal economist or Milton Friedman libertarian economist I think we all need to come together and assess The potential catastrophic emergencies that may face us as the effects of global climate change become apparent around the world. It is creating disasters, it's creating agricultural shortfalls and massive pressures for human migration as whole countries face depletion of their soil due to high winds Now, there are still a few skeptics out there in the voting constituency and I respect very much the concerns that have been raised by people who are remaining skeptical about global climate change.

I would remind you I was an employee of the US Weather Bureau in my late teens and early 20s. And I was a college freshman and I figured out at that time I knew everything there was to know about meteorology. My dad didn't agree. He was a Navy meteorologist And one of the original signatories to the original scientist petition going climate change. To this day, he starts talking about Al Gore anytime the top issue comes up. So if you're a climate skeptic and you're on the Board of Supervisors, you'd probably get along great with my dad and I just would hope that you stay up on the literature because I think that the trend in science They're saying more and more it's going to become a problem at state, county and city levels. And I think that our planning department has some very, very capable professionals.

And if people have concerns, I suspect that they would be able to help. The next speaker is Lynn Lindrod to be followed by Judith Everett.

not transcribed≈20s of audible speech the AI couldn’t make out▸ listen

1:01 – 1:0711 turns

CommentNathan AlleyProposed1:01:48 · ≈ 10:01 AM

Good morning. I have a few friends that have been personally affected by this issue of conservatorship of elders and I'm concerned about the way that elders are manipulated during difficult times to take a substantial amount of their savings by conservators in the probate court. A particular request that we've been thinking about recently is having testimony in the court audible enough so that everyone can hear it, particularly by court-appointed agents There are two websites which give wonderful information on the situation facing elders.

One is Ustream TV, which is an interview with Patricia Rosen and the issue is Are Conservators Robbing the Elderly? The other one is NASGA, the National Association to Stop Guardian Abuse. They also give more personal details about the problem. Thank you.

UnidentifiedChairProposed · by role1:03:05 · ≈ 10:03 AM

Thank you, Mr. Allen.

UnidentifiedUnidentified speaker 1Proposed1:03:07 · ≈ 10:03 AM

Our next speaker is Judith Everett to be followed by our final speaker Brian Rosen.

CommentLynn HendredProposed1:03:13 · ≈ 10:03 AM

Yes, I want Judith Everred from Santa Barbara and I appreciate being part of your meeting at a distance. Now I very much have been following the case of Patricia Rosen and to find out that indeed it's a fairly general practice for counties and for private organizations to exploit elders. And I also belong to a education group called POIS and that's People for Open Informal Self-Directed Education, and I think it's very fair that elders should have the opportunity to make their own decisions whenever that is possible, and unfortunately the courts have stymied that practice So I fully support the National Association to Stop Guardian Abuse.

That is, people who are supposed to be looking after elders are abusing and exploiting them. So thank you for your time.

UnidentifiedChairProposed · by role1:04:26 · ≈ 10:04 AM

Thank you. And does... Oh, I'm sorry. Does that conclude public comment?

UnidentifiedUnidentified speaker 1Proposed1:04:30 · ≈ 10:04 AM

We have Brian Rosen to be followed by Patricia Rosen who's our final speaker.

UnidentifiedChairProposed · by role1:04:34 · ≈ 10:04 AM

Thank you. Mr. Rosen?

UnidentifiedUnidentified speaker 12Proposed1:04:37 · ≈ 10:04 AM

Yes, Brian Rosen here. It's nice to have this wonderful opportunity to speak to all of you. Judith who just spoke was actually named years ago one of the two I believe two state caregivers of the year and she was actually fired for reporting elder abuse by one of our leading fiduciary care agencies here in Santa Barbara who people can go to the NASCA website and find out who they are.

I feel strongly that reform is needed on this issue, that the county needs to direct the state representatives to institute reform. The supervisors from Santa Maria spoke about following the law and how important that was but apparently these people are above the law And the various, the last trustee for example court supervised trustees and conservators are required to submit an accounting to the court. The last conservator had tried to get rid of my mother's doctor many many years because he wrote a letter that she shouldn't be under conservatorship.

Then they did a bogus restraining order on me and when we brought in witnesses they all resigned but they wanted to pay themselves so they avoided the accounting altogether And then the accounting was submitted two years later to make up for an $83,000 discrepancy. A very shortened version of the accounting was submitted and I asked the judge if this was permissible If she was accepting the accounting, I wanted a chance to cross-examine and bring up witnesses because without oversight and accountability there's all kinds of problems. And Judge Stern didn't address my concerns. Apparently she just approved all the accounting even though there was $83,000 missing in about five months and that wasn't really accounted for. Judge Stern had encouraged me to file a petition of my own, objecting to the accounting of the new trustee who was including the old accounting of the prior trustee.

And when I submitted it, I was told I had no legal standing even though I was the son. So that was how they didn't even have to hear my petition. We have to have oversight. Board members, we have to have accountability. I started out in the beginning of this year with two resolutions. I wanted to find out who murdered my sister back in 1974 and I'm going to be working on this but my mother should not be under conservatorship that is something I am working on very hard right now it never should've happened older people who await their retirement years and their freedom to control their lives and money shouldn't have that taken away from them We need your help going to the state. We need oversight.

I think we need televised proceedings because what I witnessed, an older woman really being abused in front of the judge and it was horrendous. And this kind of thing can't go on. It mustn't go on. There's too much profit to be made, too much temptation. We need oversight and I thank you so

UnidentifiedChairProposed · by role1:07:45 · ≈ 10:07 AM

much for

UnidentifiedUnidentified speaker 12Proposed1:07:45 · ≈ 10:07 AM

listening.

UnidentifiedUnidentified speaker 1Proposed1:07:48 · ≈ 10:07 AM

Our final speaker is Patricia Rosen.

1:07 – 1:116 turns

CommentPatricia RosenProposedself-stated1:07:55 · ≈ 10:07 AM

Hello, I'm Patricia Rosen. I'm the victim of this conservatorship and right now the conservator finally retired and she gave me to a nephew of mine who I haven't seen in many years and he is Given me a little allowance. In the meantime, he's taking my husband's retirement money that is supposed to go to me. This retirement money was from the state of California and the county.

This was very important to him to make sure I was well taken care of because he was a wonderful man who really cared about his family. But my cousin, my nephew rather has the money and has given me this little allowance as I said and the rest of the money is going into some bank account and there's no oversight. I don't know what's in there or how much or he gives me the allowance so I really don't know what to do about it, but my main thing is what Brian, my son just said. The reform is needed for conservatorship and I hope that somebody will do something about this. Okay? Thank you very much.

UnidentifiedChairProposed · by role1:09:14 · ≈ 10:09 AM

Thank you. That concludes our public comment and before we take just a short break Miss Waller, we had several Major incidents and rescues this last week. And I was shocked, and I had folks call and ask why we'd send in a helicopter and two engines to rescue a kayaker when maybe someone could have hopped in the boat and gone out and pulled him in. So I, and then we had a rancher that was lost and he ended up a third of a mile from his horse trailer.

So I think that I'd like to know what the standard is and you know, I don't want to be a jerk. That sounds like I'm being a total jerk but it just seems like maybe We're barking up a different tree. So sometime, someplace if you would be kind enough to give us some kind of report on that.

UnidentifiedUnidentified speaker 5Proposed1:10:16 · ≈ 10:10 AM

Certainly Chairwoman I'll speak with both the Fire Chief and the Sheriff and we'll get you guidelines on how search-and-rescue operations are conducted and when they were conducted.

UnidentifiedChairProposed · by role1:10:27 · ≈ 10:10 AM

And normally I would have gone straight to the Chief and the Sheriff but it just seems like we need the public to know that we are watching. You know I mean this didn't sound logical So with that we're going to take a ten minute break and we'll be back at 1030. Thank you.

UnidentifiedUnidentified speaker 2Proposed1:11:06 · ≈ 10:11 AM

Thank you.

UnidentifiedUnidentified speaker 13Proposed1:11:50 · ≈ 10:11 AM

There was a horse like the Tennessee stud.

1:12 – 1:212 turns

UnidentifiedUnidentified speaker 14Proposed1:12:57 · ≈ 10:12 AM

Yeah. I don't know. you Yeah.

UnidentifiedUnidentified speaker 2Proposed1:16:53 · ≈ 10:16 AM

Thank you. Yeah. Yeah. Yeah. Thank you. What's up?

1:21 – 1:253 turns

UnidentifiedUnidentified speaker 13Proposed1:21:51 · ≈ 10:21 AM

Thank you.

UnidentifiedUnidentified speaker 2Proposed1:22:32 · ≈ 10:22 AM

You. This is my favorite part of Board of Supervisors. What's the name of the. This is Santa Barbara Board of Supervisors,

UnidentifiedChairProposed · by role1:25:17 · ≈ 10:25 AM

May 10th 2011. Mr. Allen we're ready to begin the The departmental agenda, so item one.

1:25 – 1:3828 turns

UnidentifiedUnidentified speaker 1Proposed1:25:30 · ≈ 10:25 AM

Madam Chair and members of the Board, Item 1 is from the Treasurer Tax Collector. It's a hearing to receive and file the fiscal year 2010-2011 third quarter report on the treasurer's investment pool pursuant to Government Code Section 53646B. Thank you. Mr. Hagan? Welcome.

GuestHarry HaganTax CollectorProposedself-stated1:25:47 · ≈ 10:25 AM

Thank you. Good morning Chair, members of the Board. I'm Harry Hagan, Treasurer Tax Collector. I am joined today by Kim Tesoro our Investment and Debt Officer and the item before you is the Treasurer's Investment Pool for the quarter ended March 31st and it is being provided to you pursuant to Government Codes 53646 The investment pool is managed by the County Treasurer's Office on behalf of the counties, community colleges, local special districts and local school districts also.

Our investment authority is derived by the county code and the government code 53-607 Oversight of the pool is provided by the independently elected auditor controller who provides a quarterly investment review and an annual audit. Additionally, we have a Treasurer's Oversight Committee and they have discussed this report at their quarterly meeting and the Treasury Oversight Committee promotes the public interest and is governed by Government Code 27130.

The investment objectives of our office in this order are safety, principle, liquidity and yield. Pursuant to Government Code 53600 we have a mandated responsibility to manage and invest public funds with the primary objective of safeguarding principle. Secondarily it is to provide the liquidity for our pool participants and thirdly to achieve a market rate of interest The investments that we're authorized to invest in are governed by government code 53-630, and then we have a county investment policy that is a little bit more restrictive.

The Treasury Oversight Committee reviews this policy annually and we submit it to your board for adoption annually, and that usually happens in February. Additionally, we submit it annually to the California Debt and Investment Advisory Commission annually also. And this policy meets or exceeds the requirements of law and regulations governing the pool. This is the composition of the pool at March 31st, and as you can see, the callable securities in the government agency notes... The callable securities are also government agency notes. They just happen to have a call structure either a one-time call or a continuous call or quarterly call or a structured note but these are all AAA securities just as the government agency notes are also The cost valuation of March 31st was $993,362,423.

And the trend that we are currently following probably for the last six to nine months, we've been increasing our investment in the California Asset Management Program and that's the 4% on the bottom there camped. Our cash holdings have gone up as have our treasury purchases And the types of things we've been letting mature off would be the commercial paper, the corporate notes or what's called medium term notes up there and the discount notes also. Just because we can get a higher rate of return with our treasuries camped and cashed and we can increase the credit quality at the pool also at the same time and liquidity day also.

Oops I skipped one. Okay, well we're going to skip that slide I guess. This is a slide showing the cash flow of the pool. Mike,

UnidentifiedChairProposed · by role1:29:27 · ≈ 10:29 AM

is this slide online?

GuestHarry HaganTax CollectorProposedself-stated1:29:31 · ≈ 10:29 AM

Did you not have that? I

UnidentifiedChairProposed · by role1:29:33 · ≈ 10:29 AM

can't find it.

GuestHarry HaganTax CollectorProposedself-stated1:29:35 · ≈ 10:29 AM

Okay, well let me explain. This is a slide that shows the cash flow of the pool as you would notice on in April and December are cash influxes basically April 10th and December 10th property taxation collections. The June date of 2011 there you see the expenditures outweighing the revenues And that would be because of the TRAN repayment, Tax Revenue Anticipation Note for the schools and the county.

July you'll see a little bump up in revenue and that's the TRAN money being deposited for the county and schools. And then you see August-September months where we're actually utilizing cash proceeds. And then tax bills go out in October and you see revenues exceeding expenditures at that point The weighted average maturity of the pool at that point is 566 days at March 31st.

Oh, okay so here's a slide we couldn't pull up before. This is the distribution of the earnings for the quarter and the pool earned $2,268,286 during that quarter. The county receiving 43% and it kind of further illustrates My responsibilities go further than just the county. It encompasses special districts. Madam

UnidentifiedUnidentified speaker 6Proposed1:30:57 · ≈ 10:30 AM

Chair? Supervisor? Mr. Hagan, I notice that the three legs to our pool of investments are the special districts, the schools and the county.

GuestHarry HaganTax CollectorProposedself-stated1:31:08 · ≈ 10:31 AM

Absolutely.

UnidentifiedUnidentified speaker 6Proposed1:31:08 · ≈ 10:31 AM

Yes. I've always wondered...I know they have the authority because they obviously do it but I've always wondered why the cities wouldn't want a pool with us to maybe achieve an economy of scales, or is it they like managing their own investments at their own level risk that they don't have to abide by like county treasurers do? Or in other counties, do cities invest with the treasurer's office?

Can you enlighten me about that issue?

GuestHarry HaganTax CollectorProposedself-stated1:31:38 · ≈ 10:31 AM

You know I think they like their independence. The only instance I can recall where we had a city in our pool It was the City of Goleta when they incorporated. And for a short period of time, they were in our pool and then they divested themselves of the pool and wanted to be independent. But as far as legally can they be in the pool? I'm not aware of a reason why they can't be but I think they just like their independence and flexibility that affords it.

UnidentifiedUnidentified speaker 6Proposed1:32:06 · ≈ 10:32 AM

Madam Chair, the other question is do they share a different tolerance level for risk in terms of their policies that you're aware of than we do or is it synonymous? How does that compare and contrast?

GuestHarry HaganTax CollectorProposedself-stated1:32:18 · ≈ 10:32 AM

They are governed by the same government code as far as what they can do. What they can invest in. The duration. Credit quality, concentration of securities. But they also have to adopt their own investment policy and as I stated real quickly our policy is actually a little more restrictive than the government code allows and that's for the security of the principal but they would be governed by the same Mr.

UnidentifiedChairProposed · by role1:32:40 · ≈ 10:32 AM

Carbajal, to complete that I think that is a great question because I sit on one of the boards for the state and what we have found throughout the cities, the cities just are not even closely as entrepreneurial as the special districts in the counties. The cities just seem to not in her in investments like Mr. Hagan has done, but the cities just don't seem to be there yet.

not transcribed≈20s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 6Proposed1:33:27 · ≈ 10:33 AM

Well we have a conservative investment policy, but I think...I'm wondering if the cities...the pendulum swung so far after the Orange County debacle where many of them invested?

UnidentifiedChairProposed · by role1:33:38 · ≈ 10:33 AM

It wasn't even that. According to the folks at three treasurers that I was meeting with throughout the state it wasn't even that. The cities just by structure have not done the investment as the county has. So I mean, I think it's a great idea for all of us to talk to our friends that are on city councils and say you know what your policy and we can send Caltrans or even see they just go to left period end of story and don't try and go any further than that

GuestHarry HaganTax CollectorProposedself-stated1:34:07 · ≈ 10:34 AM

Yeah, a lot of cities they invest just in LAIF. And we have 50 million in LAIF the maximum you can also but a lot of cities just utilize LAIF or Caltrans or CAMP as... So there's

UnidentifiedChairProposed · by role1:34:18 · ≈ 10:34 AM

some options and they're not quite doing that yet so back to you Mr.

GuestHarry HaganTax CollectorProposedself-stated1:34:23 · ≈ 10:34 AM

Hagan. Okay thank

UnidentifiedChairProposed · by role1:34:25 · ≈ 10:34 AM

you.

GuestHarry HaganTax CollectorProposedself-stated1:34:27 · ≈ 10:34 AM

So this is a slide of our performance since 2002 versus some selected benchmarks And what I do need to point out though is that we are, .90 was the last quarterly apportionment. We're the pink line there. LAIF is the blue line of .51 that you were mentioning, Chair Gray. What I should point out though is that LAIF is purely an investment vehicle And they invest in things that we won't invest in, a much shorter duration. But our pool is much more than just an investment vehicle. It's a full banking service from depository to armored car pickup to credit card processing. All of that goes into our pool so ours is much, much more as far as service delivery then what these would be.

UnidentifiedChairProposed · by role1:35:14 · ≈ 10:35 AM

And one of the things that was pointed out about LAIF is you can only, I mean you have to get your requests in by 11 o'clock in the morning in order to pull your money out. And number two they're really hesitant into allowing you to have several different funds in which you have separated your dollars and so even assume that the cities could get exactly what what is being done as far as life is concerned. They don't have the flexibility that's available in some of the other investment vehicles.

GuestHarry HaganTax CollectorProposedself-stated1:35:44 · ≈ 10:35 AM

Yeah, like I said we have $50 million in life and we use it somewhat as a cushion in case something comes up. We can get ten million dollars same day and then we can get the full amount refunded in two days. That's kind of a backstop for liquidity purposes but it is a good investment It's run by the state treasurer, but it's purely an investment vehicle. That's all it is.

What I do should point out on this slide too is you'll see there are times in the economic cycle where we will lag the indicators and right around 2004 you see where we lagged LAIF and the federal funds rate and three months Treasury bill as interest rates rise rapidly we will rotate slower And something that's slower, that shorter duration. Again we are 566 days out to our weighted average maturity on our pool.

And this is the last slide. We are AAAF S1 rated pool. That's both highest ratings. The AAAF indicates highest level of protection against potential losses from default The S-1 reflects a low risk sensitivity to interest rate movements, credit risk diversifications and liquidity. And we're very proud of that. We report to Standard & Poor's monthly and we meet with them annually face-to-face.

So it's an ongoing rating that we renew monthly. And that concludes my presentation. I'm here to answer any questions. Thank you. Any

UnidentifiedChairProposed · by role1:37:21 · ≈ 10:37 AM

questions? What was it you invested this year? It's 63 million. What'd you say?

GuestHarry HaganTax CollectorProposedself-stated1:37:28 · ≈ 10:37 AM

Are you talking...

UnidentifiedChairProposed · by role1:37:29 · ≈ 10:37 AM

This year, well basically.

GuestHarry HaganTax CollectorProposedself-stated1:37:32 · ≈ 10:37 AM

Well I'd say we've probably collected $300 million in December in property taxation and $350 and maybe another $250 between that and April 10th. And so Kim arrives every morning. We kind of go through a strategy and she selects a lot of callables, agencies that are AAA Treasuries, because of the unknown with the state budget we're kind of building up cash. We actually get about 37 basis points on our cash deposit so it's a much better rate than a discount note which is an agency short-term agency note that's discounted.

It's better than the Treasury but we don't want to fully invest in one thing. So those are the types of things. We started with CAMP this year which is California Asset Management Program to provide additional liquidity And so those are the types of things we've been investing lately.

not transcribed≈7s of audible speech the AI couldn’t make out▸ listen
UnidentifiedChairProposed · by role1:38:26 · ≈ 10:38 AM

Thank you, other questions? Do we have any public speakers?

UnidentifiedUnidentified speaker 1Proposed1:38:29 · ≈ 10:38 AM

We have one request to speak in Santa Barbara from Brian Rosen.

1:38 – 1:4310 turns

UnidentifiedUnidentified speaker 12Proposed1:38:36 · ≈ 10:38 AM

Hello members of the Board of Supervisors I would like to address this question to Mr. Hagan. I would like to know what kind more specifically what kind of investments the county is investing in Are these socially conscious investments or are they investments that are really harming the planet quite a bit? Socially conscious investments in a socially responsible community seem like a very important thing to do. Are we investing in big corporations like Monsanto, that has waged war against organic farmers because they plant their fields near organic farmer fields and then they sue the organic farmers when the pollination occurs Are we investing in nuclear power companies? Are we investing in munition companies? Are we investing in pharmaceutical drug companies?

What kind of investments are we doing and why can't we do some socially responsible investments because we might be doing other people around the world a lot of harm by investing in some of these big corporations while we're enriching ourselves. And I would hope we would not want to benefit at other people's expense. So, if Mr. Hagan could submit a list of all the companies that are being invested in, I think that would be very helpful for the people of Santa Barbara and I put this on the record. I would hope that we can invest in local companies and local people And not in like harmful developments destroying ecological habitat and stuff like that.

We could invest in other ways to save money locally, like putting solar panels to save a lot of money for the city on top of all the buildings. You know Mahatma Gandhi said the means determine the ends and we want to have good means in this county But good ends will not come from bad means. You know, if we want a healthy prosperous economy well we want to have a good way responsible socially responsible way to accomplish this so there's many many socially responsible investment funds out there And I'm just very concerned that, because I understand the things that really pay the big money are for some pretty bad companies. And I think we need to check with various non-profit organizations and rate these investments for social consciousness.

And there are a lot of groups who are very much into this. The Friends, the Quakers are into socially responsible investments. I think the Unitarians are. And there's a lot of groups that would love to get input, so I just ask you to open this up more to public input from different groups that can rate these investments and suggest more socially responsible investments. And I would hope that some of the... There are many things that can save money that are more socially responsible and I hope you will go in that direction and not support big corporations that are doing a lot of harm to the planet, pharmaceutical drug companies and so forth.

And thank you so much for listening to my comments. I appreciate it and thank you again.

UnidentifiedChairProposed · by role1:41:29 · ≈ 10:41 AM

Thank you, Mr. Rosen. Any other comments? Statements from Board of Supervisors?

GuestLavininoProposed · by introduction1:41:35 · ≈ 10:41 AM

Madam Chair, thank you. Thank you, Mr. Hagan. Wonderful presentation. It's always wonderful to hear On what solid financial ground the county has been and continues to be. Thank you for all your good efforts. I did have a question in looking at the interest that was earned in the last quarter, looks like approximately $1 million maybe a little bit less was what the county earned out of that 2.2 million.

Anyway my question has to do with when we do estimates for our budgets as to what we might be earning from the investments over the course of the year Are we on track for what was estimated for this year's budget and how does that look going forward into the forecasting for next year?

GuestHarry HaganTax CollectorProposedself-stated1:42:23 · ≈ 10:42 AM

Madam Chair, Supervisor Farr. I believe the estimate for the current year that were in was 50 basis points so we're surpassing that right now And I believe that was the number we submitted to the county executive office to include in the budget process. So as of right now, we are surpassing that but you know we don't try to use a crystal ball prognosticate too much. We try to be conservative but things are looking up as far as the interest rates we did see a small uptick this past quarter to 90 basis points, but I hope that answers your question.

UnidentifiedChairProposed · by role1:43:06 · ≈ 10:43 AM

Okay, thank you. Other questions? Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed1:43:11 · ≈ 10:43 AM

Thank you Madam Chair. What does that mean in terms of dollars? In terms of the 50 basis points return versus the 90, I mean obviously almost doubled so just to give us a flavor

GuestHarry HaganTax CollectorProposedself-stated1:43:25 · ≈ 10:43 AM

It's certainly a component of what you have on deposit, too. So if you don't have money on deposit we could earn 5% and it's going to still equate to zero. So really it's tough to pinpoint. It depends how much money you really have on deposit but if everything was holding static then clearly we would've been almost lapping what was estimated this past year.

UnidentifiedChairProposed · by role1:43:48 · ≈ 10:43 AM

Is there a motion?

GuestHarry HaganTax CollectorProposedself-stated1:43:49 · ≈ 10:43 AM

Did I

UnidentifiedUnidentified speaker 6Proposed1:43:50 · ≈ 10:43 AM

answer that question? It did in a roundabout way. I was still looking for that dollar sign, but it eluded us.

Roll-call vote Moved by Doreen Farr · Seconded by Steve Lavagnino
Show transcript
Thank you. Second by Supervisor Lovanino. Motion by Supervisor Farr. All in favor say aye. Aye. Thank You Mr. Hagan and Mr. Allen next item?

1:44 – 1:5815 turns

UnidentifiedUnidentified speaker 1Proposed1:44:16 · ≈ 10:44 AM

Madam Chair, members of the Board. Item 2 is from the Auditor-Controller General Services and the Treasurer Tax Collector. It's a hearing to consider recommendations regarding a presentation on the county's use of debt for capital projects and proposed projects substitutions for certificates of participation issued in 2005 and 2010.

UnidentifiedChairProposed · by role1:44:35 · ≈ 10:44 AM

Mr. Gall do you need time? Okay. Okay who... Mr. Hagan are you taking this one? Okay.

GuestHarry HaganTax CollectorProposedself-stated1:44:46 · ≈ 10:44 AM

Yes, I'm going to be taking this one Madam Chair and members of the Board. Good morning again, I am Harry Hagen, Treasurer Tax Collector. I am joined today by Theo Filotti, Assistant Auditor-Controller and Bob Nisbitt our General Services Director. On February 15th your board requested a comprehensive presentation on the county's historical and current use of debt for capital projects.

The Debt Advisory Committee met twice on this subject and a project team was formed The project team consists of members of the Auditor-Controller's Office, Mr. Bob Geis, Theo Folati and Julie Hagan. Members of General Services, Bob Nisbet, Patty Langlands and Brian Duggan. And our office myself, Kim Tesoro and Rochelle Camozzi. This presentation is going to be broken up into three sections.

Theo Filotti will take the first section, he will go over information regarding debt as a monetary tool, debt issuance practices and projects that have been debt financed in the past that have been both paid off and are currently being serviced. I will then show information regarding the current debt obligations, current and future annual debt service payment amounts And our current debt ratings.

And then Bob Nisbet will conclude with reallocation of the recovery zone economic development bonds, the reallocation for tax exempt 2010 COP proceeds and then a project substitution and reallocation of the remaining 2005 COP proceeds. And so with that I'll kick it off to Theo.

UnidentifiedUnidentified speaker 6Proposed1:46:25 · ≈ 10:46 AM

Madam Chair

UnidentifiedUnidentified speaker 11Proposed1:46:27 · ≈ 10:46 AM

Supervisor Carbajal.

UnidentifiedUnidentified speaker 6Proposed1:46:28 · ≈ 10:46 AM

Thank you, I think this is a great way and a creative way of fulfilling many objectives but as a decision maker I've always been informed by all the trainings we've had that we should always ask some very important questions so I'm going to ask the most important question for me that gives me the satisfaction that we're doing a good thing here. So I'm looking at County Council The auditor and the treasurer, and since our general services is there including our CEO to assure us that what is before us is one legal and two prudent from a financial standpoint. And as long as the answer to those I'd like to hear the answer to all of those from all of you actually speak to give me the assurance because you are the experts that we rely on And if at the end of the day you're telling us it's prudent, it gives me satisfaction.

But I need to hear that from all of you as I make a decision on this today.

UnidentifiedChairProposed · by role1:47:27 · ≈ 10:47 AM

Thank you Mr. Carvajal and that is probably difficult as you strive to figure out what his definition of prudent may or may not be. So I guess he's asking you to address the value of prudency here and legal Mr. Marshall will handle.

UnidentifiedUnidentified speaker 4Proposed1:47:46 · ≈ 10:47 AM

I can say that we work closely, my office works closely on this project and we do feel that these actions are all within the bounds of legality.

UnidentifiedChairProposed · by role1:48:00 · ≈ 10:48 AM

And we might just say that it would be the prudent man, woman standard that is pretty much defined in a lot of court laws. So that's probably the definition of prudent that we're looking for.

UnidentifiedUnidentified speaker 9Proposed1:48:11 · ≈ 10:48 AM

Madam Chair? Supervisor Wolff? I sit on the Debt Advisory Committee and the voting members are myself, Mr. Marshall, CEO Waller, Mr Geis and And I have to say that over these past few months we have gone over, well let me just say that this puzzle, there's a puzzle piece that we're going to be getting to later. I thought that was brilliant because it really has been putting pieces of a puzzle together and I'm looking forward to hearing the presentation because it has been a very difficult conversation Working around these numbers and trying to make it, make sure that it is legal. And I think that the folks who have been working on it so closely have really come to us with a very strong package. So I just wanted to thank you all in advance for doing such a great job.

Thank you, Supervisor.

UnidentifiedChairProposed · by role1:49:16 · ≈ 10:49 AM

We've got the best of the best sitting out here. So let's hit it.

UnidentifiedUnidentified speaker 15Proposed1:49:21 · ≈ 10:49 AM

Members of the Board, I'll start out with just indicating that long-term debt is actually a very important monetary tool in the county's financial toolbox. The county does use a combination of pay as you go and long term financing in order to meet its capital asset needs. The difference there between pay as you go... pay as you go and long term financing. Pay as you Using either current year revenues to acquire your assets or using an accumulation of funds by saving over time.

The county does use pay as you go in certain situations, particularly the fleet vehicles and the motor pool We do save up the money to purchase those assets without financing. And for the vast majority probably of our computer systems, those are also done on a pay-as-you-go basis. We do use long term financing mainly for buildings and facilities These are usually long-lived assets that it's very difficult to save enough money up for, to purchase it. An analogy would be saving enough to purchase a home versus getting a mortgage on your home whereas some people may be able to save enough money to buy a car without going into debt That would be the analogy between potential pay-as-you-go versus long term financing. Now typically these long term assets are also intergenerational assets, so they're very long life buildings will last 30 40 50 many more years in some instances like our courthouse or potentially our Cali Real campus where the hospital is.

Those are all very old buildings, but they're still in use with refurbishing. So typically those will go across multiple generations and use of long-term financing does help to spread the cost of those buildings over at least a couple of generations most of the time. Another important thing to point out is that we do not use long-term debt to finance any of our operating expenses whatsoever. We only use debt for capital assets.

Over the years, the counties used various types of financing instruments. Revenue bonds where basically a stream of revenue is pledged for repayment of the assets themselves Certificates of participation, where in that situation the simplest form is we put up one asset for collateral and borrow money against that asset and use that money to purchase or construct another asset. And then we also use capital leases where we would actually pay for that specific asset over time and not pledge a different asset for collateral.

Basically, debt has been issued by the county via a couple of options. Open market and then also private placement. On the open market institutions and investors or individual investors can actually buy any or part of the issuance that the county puts out. And then with private placement typically a single investor or institution buys that whole issuance. I also want to point out that Santa Barbara County employs many positive debt issuance practices over time. Number one is our Debt Advisory Committee, which Supervisor Wolf has already identified the members of And just to let you know then, the process for the Debt Advisory Committee is when a department brings forward a request for financing to finance purchase or building or construction of an asset.

That application comes to the Debt Advisory Committee. The Debt Advisory Committee staff analyzes and reviews that application and then makes recommendations to the Debt Advisory Committee. Then the Debt Advisory Committee meets, makes their own evaluation of the presentation and the application by the department and then the debt advisory committee staff recommendations. And then they will make a recommendation to the Board of Supervisors on a particular action regarding financing.

Let's see, also one very important thing is that no debt is issued without a specific source of repayment being identified prior to that debt being issued. So whether that is a stream of payments for instance in the Solid Waste Division it may be the tipping fees are identified as the source to repay the debt itself and sometimes it's actually just general fund resources used but they're identified up front and then budgeted annually for that We also use an accelerated principal repayment, and this is a very positive item where typically we will pay for more than 50% of the principal of the debt in the first 50% of the life of the debt. And so it's an accelerated repayment of principle. This is looked upon very favorably by our rating agencies.

Additionally, we generally use a 20-year maximum repayment schedule. So even though we might purchase or construct a building that has a 30-, 40-, 50-year life, we have it paid off within 20 years. That's another very strong point and then we also have a very strong financing team We have a nationally recognized bond council. We choose underwriters for any specific issue that we have, and we try to find the best underwriter for the specific issue that we're doing. And then county staff is involved from the Treasurer's Office, the Auditor's Office and County Council.

Next slide is basically highlights of attachment B that is in your board letter, your package. And these are identifying some of the projects and or acquisitions that long-term debt has been used for And on this sheet, these are debt issuances that have already been paid off. So the assets that were purchased or constructed with the debt are owned free and clear at this point. And you can see that it stretches from the main jail in 1968 and don't we wish we could build one for that price today?

And then a particular highlight is the whole complex here, the 1990 issue. We purchased the Better Avia Complex here which are the four existing buildings here for $31 million and we paid that off or last payment is due this year so we'll own this whole complex free and clear. Again these are just highlights and there's more detail on attachment B to the board letter.

On the next slide we have some projects that We have acquired and these are with debt that is still outstanding at this point. And so we show you the year that the debt was issued, the projects themselves and then the amount and then also the payoff years and you can see that we're going to be paying debt for a long period of time. But again it's an important tool to allow us to acquire these intergenerational assets.

I just want to point out that currently we're working on two financings. Our tax and revenue anticipation note, which is a short-term borrowing for our cash flows for this next fiscal year. And then also a qualified energy conservation bond for the Laguna Sanitation solar project. Now we'll be bringing both of these items back to your board next week with presentations on those two.

That's it from me. I'll turn it back to Harry.

UnidentifiedUnidentified speaker 9Proposed1:56:57 · ≈ 10:56 AM

Thank you. As you speak about what's coming back before us, maybe Mr. Nesbitt wants to talk about the solar project behind the jail and because I thought that was coming back May 17th but I saw on our future agenda items that it's coming back in June. Is that correct? Are you going to be prepared then to bring that back?

UnidentifiedUnidentified speaker 16Proposed1:57:24 · ≈ 10:57 AM

Madam Chair and Supervisor Wolf, I know we are submitting an item for May 17th. The deadline to apply for those types of bonds known as QSEBs is May 20th and at agenda review yesterday it was noted that it was on It will be on, proposed to be on for the administrative calendar from May 17th. And all we'll be asking the board at that time is not to evaluate the advantages or the finances of the project per se but just to submit the application for the QSEVs requires a resolution of the board.

UnidentifiedUnidentified speaker 9Proposed1:57:57 · ≈ 10:57 AM

Okay very good thanks thank you for that Thank you

1:58 – 2:0315 turns

GuestHarry HaganTax CollectorProposedself-stated1:58:06 · ≈ 10:58 AM

Okay, so the next slide here is the debt payment scheduled by fund type at March 31st. The original issuance amount may seem a little strange compared to the net outstanding but let me explain that. That is the principal amount that's outstanding on our COPs and other financings as of that date. The net outstanding principal in interest Obviously it includes the interest component and its net of the reserve fund earnings and any interest subsidies we receive on the recovery zone bonds. So that's a net amount of what the county obligation is at that point in time.

The payment of $8,266,000 on the final column on the right is the legal amount that will have to be remitted in that budget year. And of that amount, $3,184,000 is general fund cost This is a schedule showing four years of history and going out into the future until all of our current debt is repaid in a stacked bar chart showing the debt issuance amounts. And if you look at 2011, or actually I'm sorry 2012 June 30th 2012 that is at approximately 8.2 million dollar amount right there What you see also, you see a big drop off this next fiscal year. The 1998 COPs and the 2004 COPs are fully satisfied this fiscal year that we're in.

And at $8.2 million is roughly 1% of our proposed budget just for some context. Additionally You'll see the 2010 RZEBs, which is the purple stack on the top. And that's our 2010 COPs also. Just for I guess a little refresher history from they were issued last year what the RZEs are because that will become more integral as the presentation goes on. They were part of the 2009 Recovery Act. That's what created the RZeb program I'm to provide lower interest cost financing to local municipalities.

On March 24, 2010 the county received an allocation of $18.95 million from the California Debt Limit Allocation Committee Interest on our ZEBs are issued on a taxable basis. And so in our case, it was about six and a quarter percent on a taxable basis to investors. We received a 45% federal subsidy and so that reduced our interest cost to about 3.5%, is what our cost of funds are for this issuance. Clearly that's the historical low we've ever issued at.

The previous deck and your board should really be commended and recognized for doing

GuestLavininoProposed · by introduction2:01:06 · ≈ 11:01 AM

that. Thank you, Madam Chair. Mr. Hagan could we go back to the previous slide? Sure

GuestHarry HaganTax CollectorProposedself-stated2:01:13 · ≈ 11:01 AM

yeah

GuestLavininoProposed · by introduction2:01:13 · ≈ 11:01 AM

okay so I'm trying to understand this the payments for next budget year 8.2 although you said

UnidentifiedUnidentified speaker 2Proposed2:01:22 · ≈ 11:01 AM

Something

GuestLavininoProposed · by introduction2:01:22 · ≈ 11:01 AM

over three million is from the general fund. If I back out the enterprise funds, I'm still a lot more than that so can you break that down a little bit more for me?

GuestHarry HaganTax CollectorProposedself-stated2:01:32 · ≈ 11:01 AM

If you go to Schedule C of the board letter attachment it has all the details of the operating funds and the general funds and the enterprise funds.

GuestLavininoProposed · by introduction2:01:40 · ≈ 11:01 AM

But operating funds aren't general funds?

GuestHarry HaganTax CollectorProposedself-stated2:01:42 · ≈ 11:01 AM

They would be more like social services, public health

GuestLavininoProposed · by introduction2:01:47 · ≈ 11:01 AM

OK, that's not under the enterprise funds and that's something separate.

GuestHarry HaganTax CollectorProposedself-stated2:01:50 · ≈ 11:01 AM

The enterprise funds would be more like the landfill things are run like a business. So Laguna Sand would also be another example

GuestLavininoProposed · by introduction2:01:59 · ≈ 11:01 AM

right? Because I mean I think you know for me and maybe this kind of gets back to what Supervisor Carbajal was talking about is that we're trying to balance the financial realities that we have going forward with The cost of not issuing the bonds versus the cost of issuing or not using the bonds versus using them for these very important projects.

GuestHarry HaganTax CollectorProposedself-stated2:02:23 · ≈ 11:02 AM

Yeah, yeah. The slide was intended to be more just a summary but the detail was going to be as the attachment C of the board letter in case you wanted to dig into it.

UnidentifiedUnidentified speaker 16Proposed2:02:32 · ≈ 11:02 AM

Yeah. Madam Chair and Supervisor Barr an example? An example of that, if you were looking at attachment C, may be the casting away of a building. That's shown as a general fund expenditure. However we lease that building to the Air Pollution Control District and Santa Barbara County Association of Government. So in a sense, the lease payment is paying that debt service so it's showing up under general fund but in reality it's not a burden on the general fund. So there's one example if you were to look at some of the detail beneath those.

UnidentifiedChairProposed · by role2:03:03 · ≈ 11:03 AM

As long as we're asking questions now, the Public Defender Bet Arabia EOC, that appears to be a 30-year debt. Have we deviated from the 20-year policy?

2:03 – 2:1416 turns

UnidentifiedUnidentified speaker 15Proposed2:03:20 · ≈ 11:03 AM

So we'll listen to policy. It's generally a practice and this is an exception to that. The reason it was done, it was a combination of the first 10 years are the non-taxable COPs. And then the recovery zone bonds are in the last 20 years. So the bonds themselves are 20 year principal payments but they don't start until after the tenth year.

UnidentifiedChairProposed · by role2:03:45 · ≈ 11:03 AM

You did tell us that before I forgot. Thank you.

GuestHarry HaganTax CollectorProposedself-stated2:03:53 · ≈ 11:03 AM

Okay, so another point of interest on this slide here is if you notice the declining amount that's going to be due going out into the future. Very important point for the rating agencies they look at things such as rapidity of payment when they do our rating and one of the things I'll look at is 25% of your principal being paid off over the next five years and 50% over the next 10 years. So that's a good graph right there, a good message And while I'm on the subject of recovery zone bonds, I know we're going to be coming back with the Qualified Energy Conservation Bond presentation next week as Theo mentioned. I know Supervisor Farr you had expressed some interest at that meeting in February.

The Q-CEBs as they are called operate very similar to the R-CEBS but the big benefit is it's a 70% subsidy issued on a taxable basis but we get 70% of that interest component back every six months so Where I said this was the cheapest money we've ever issued. If we go forward with the QCED, that will dwarf this. The one thing about that it has to be used for solar or energy efficiency type projects so it's a little bit narrower in what it can be used for.

And so, Standard & Poor's rates our long-term debt, our COPs and our short term TRAN every year. The rate agencies provide an independent assessment of the relative credit worthiness of debt obligations and the issuer's ability and willingness to repay the debt. On May 13th we had our AA rating reaffirmed when we issued our 2010 COPS. At that point Standard and Poor's said in their write-up that the county strengths are a stable, moderately growing economic base. A consistent maintenance of very strong unreserved general fund balances. An experienced management team and low overall debt levels.

And this AA plus what it means is their definition is high quality debt and the issuer has a very strong capacity to pay And what that means, just simply put is the stronger our rating, the easier it is to market our security. But it's a lower interest component which means less cost to finance something. Additionally what that double A also means, this double A plus we are least financing rate and so this is the highest you can achieve in the state. A triple A rating For a GEO bond is the equivalent of this right here. So we are at the top rating that we can be achieved, even though it doesn't say AAA.

That's just for some context. And I think I'm going to turn it over to Bob now. Thank you,

UnidentifiedUnidentified speaker 16Proposed2:06:58 · ≈ 11:06 AM

Harry. Now we get to the puzzle part of the presentation. These are a picture of the three projects that were contemplated as part of the 2010 issuance. The issuance that Harry and Mr. Filotti just talked about, that is a combination of tax-exempt COPs and taxable RZEBs. Emergency operations center nearly complete. The public defender remodel about 50% complete And on February 15th, the board directed that the Better Avia administration building should not proceed and that staff should look at opportunities to reallocate the funds that were the proceeds of that debt to other projects. And so those are the action items that are before you today.

Recommendations B through, well B and C deal with the 2010 issuance and the RZEBs And then we also will talk about some money that's available from the 2005 issuance. Going to the next slide, so this is the puzzle piece that Supervisor Wolf alluded to. So each piece of the puzzle is one of the recommendations. The top two pieces are two recommendations that have to do with the 2010 issuance and then recommendations D and E have to do with money available from the 2005 issuance of just standard certificates of participation. What I want to point out here in this puzzle, and I think it's very important is the top two pieces are linked for a very important reason.

When we went to the Debt Advisory Committee And you can go ahead and shift the slide. When we went to the Debt Advisory Committee, we essentially presented three options. One option was well, you could call a portion of the debt or all of the debt and there's a penalty associated with that. That was one option. Options two and three were essentially an option where we did not believe we had to go back to CEDLAC, the California Debt Limit Advisory Committee for permission. And an option where you would have to go to them for permission. What has changed Since the Debt Advisory Committee made their vote and directed us to come to the board with their recommendation was what we found out that even the recommendation where we did not think we had to go to CEDLAC.

We now have found out that we do have to go to CEDLAC so in The board letter, attachment A is a proposed letter that would be sent to CEDLAC asking their permission to do what the DAC advised us to do. So there's a key difference between what was presented at the DAC meeting and what we're presenting today. Why those two pieces then are linked is that the second half of the recommendation is to move or reallocate the non-RZEB pieces. These have less strings attached, but the issue there is that if CEDLAC does not grant permission to make the movement, that has an effect on the other recommendation we're making today because we would have to come back to your board, back to the drawing board essentially and say okay our options are now limited So I just wanted to make that clear, that those two recommendations are linked and we will wait to see what CEDLAC says.

And if we receive positive feedback from CEDLAC then we would proceed with both recommendations. Madam

UnidentifiedUnidentified speaker 6Proposed2:10:32 · ≈ 11:10 AM

Chair?

UnidentifiedChairProposed · by role2:10:32 · ≈ 11:10 AM

Supervisor?

UnidentifiedUnidentified speaker 6Proposed2:10:34 · ≈ 11:10 AM

Thank you Mr. Nesbitt for sharing that insight or that contingency. Have you not given it any thought to, or do you want to wait until we hear from these folks whether we implement a contingency plan of a different sort that would still allow us to achieve a lot of what we're trying to achieve with this configuration? Or you just feel it's an exercise in futility. Wait until we hear from the authority, CDLAC or C-D-L-A-C.

UnidentifiedChairProposed · by role2:11:08 · ≈ 11:11 AM

Who is? I mean who are they or their titles or something?

UnidentifiedUnidentified speaker 16Proposed2:11:13 · ≈ 11:11 AM

Madam Chair, they're an advisory committee at the state level that makes decisions regarding debt. I would say they are analogous to our Debt Advisory Committee and I believe they are a five-member committee.

UnidentifiedChairProposed · by role2:11:26 · ≈ 11:11 AM

How do they get... who is it like? Appointed by the governor, selected by God, what is... how you get to be a C-Black?

UnidentifiedUnidentified speaker 15Proposed2:11:33 · ≈ 11:11 AM

The California Debt Limit Advisory Committee is a three-member committee. It is made up of the governor, the controller and the treasurer of the state.

UnidentifiedChairProposed · by role2:11:42 · ≈ 11:11 AM

Okay and that's statutorily I assume?

UnidentifiedUnidentified speaker 15Proposed2:11:45 · ≈ 11:11 AM

Yes absolutely and they have the ability or the task of allocating the ARRA associated debt which were the RZEVS and the Qualified Energy Conservation Bonds

UnidentifiedChairProposed · by role2:11:59 · ≈ 11:11 AM

And I imagine, Mr. Mayor Smith that you're pretty much certain they're going to accept, get that feeling? I think that's what supervisors are asking you

UnidentifiedUnidentified speaker 6Proposed2:12:07 · ≈ 11:12 AM

here. Well, what is the possibility, probability of them approving it one and two, the bigger question for me is if they don't approve it do we have a contingency plan? I guess what I'm hearing is you'll revisit that when that happens but two, three Do we have any implications, timelines with some of these instruments? Any timelines, constraints that put some of our other instruments in jeopardy should this not fly and what does that do to our circumstance at that point and what's the trigger date where we should revisit this no matter what.

Because it sounds to me that there's a lot of things that are fluid, and I'm only raising the question because I would like to hear what are the implications in terms of timelines with some of these other instruments that we're kind of cobbling together to make this all happen.

UnidentifiedUnidentified speaker 16Proposed2:13:01 · ≈ 11:13 AM

Madam Chair, Supervisor Carbajal there is a time limit on expenditure of the proceeds. It's three years we're into that three year period already and so I believe approximately the deadline is June 2013 for expenditure of the funds Your other question regarding the link, I think between the two actions. Again one action that I'm about to get into here is reallocating the RZEVs. The other action that's on the next slide is reallocating the tax exempt portion and I said those are linked and we should wait to see what CEDLAC says. I guess the reason they're linked is if... And I don't know the answer to your question of what we think the probability is But let's just assume that the answer is no. I believe our contingency plan or our options at that point are two.

We either call a portion of the bonds or we go back to the original project. There may be other options but in discussing with my counterparts what we would do if that happened, that's all we came up with. So in the event and I certainly am not being presumptuous here that we had to go back to the original plan. We would not want to reallocate the tax exempt portion prematurely at least that would be our recommendation to wait That would be our prudent recommendation to find out what CEDLAC said.

2:14 – 2:2120 turns

UnidentifiedChairProposed · by role2:14:31 · ≈ 11:14 AM

Supervisor Lavenino?

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.652:14:32 · ≈ 11:14 AM

Mr. Nesbitt, thank you. When does CEDLAC meet? What kind of time frame are they on? I imagine the governor's got a few important things he's dealing with right now so... Is this something we're going to hear in the next couple of months or...? Supervisor

UnidentifiedUnidentified speaker 15Proposed2:14:48 · ≈ 11:14 AM

Lavinino, SIDLAC next meeting is in July. But there is the possibility on this request that the director of the SIDLAC and the chair of the committee could make this decision without having a formal meeting of the complete committee.

UnidentifiedChairProposed · by role2:15:08 · ≈ 11:15 AM

Who's the chair?

not transcribed≈7s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 15Proposed2:15:10 · ≈ 11:15 AM

The chair is the governor.

UnidentifiedChairProposed · by role2:15:11 · ≈ 11:15 AM

OK. 1-800-GOVERNOR. OK, Supervisor Carbajal is on it.

UnidentifiedUnidentified speaker 16Proposed2:15:25 · ≈ 11:15 AM

So now to the specifics of the recommendations. Supervisor

GuestLavininoProposed · by introduction2:15:28 · ≈ 11:15 AM

Barr? Actually Mr. Nesbitt thank you Madam Chair. Maybe going to get into this Mr. Nesbitt but I'm looking at recommendation C and I understand how they're tied together I'm just wondering about the rationale behind considering recommending this for the Taheqa's landfill liner when this is an enterprise fund and expectation was, I guess that the enterprise fund would be funding this. So I'm wondering how it relieves the general fund of $372,000 a year?

not transcribed≈9s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 16Proposed2:16:02 · ≈ 11:16 AM

Kim if you could switch slides, I'll just jump to that slide. So Recommendation C is to reallocate approximately $2.8 million from what would have been the Bed Arabia building, this is the tax-exempt portion, to the Tahequs Landfill Liner Project. And to answer your question Supervisor Farr, two points. One it is an enterprise fund so the enterprise fund would take over that portion of the debt service which we estimate to be $372,000 annually That debt service until such substitution is made, the general fund is on the hook for that debt service. We've issued the debt and debt payments have started and until a project substitution is found, the general fund is on the hook so if this action is taken The Teagas Landfill Liner would proceed and the next 10 years of debt would be paid for by the Enterprise Fund, thereby saving the general fund approximately $372,000 a year.

The other important key fact to this recommendation is that as Mr. Filotti said earlier The first 10 years are the tax-exempt portion, the COPs. The 20 years start on Year 11 and go for 20 years. Those are the RZEBs. This landfill liner project, the life of it lines up nicely with a ten year debt schedule so that's why we believe it is the perfect candidate for this substitution.

GuestLavininoProposed · by introduction2:17:33 · ≈ 11:17 AM

Thank you for that explanation and Mr. Hagan when we talked before about the three plus million dollars out of all this that comes right from the general fund is this 372,000 included in that number or already assumed to if That just would go forward and not be included in

GuestHarry HaganTax CollectorProposedself-stated2:17:51 · ≈ 11:17 AM

that number now that number is Irrespective any decisions you make today so that 372 is included in that number

GuestLavininoProposed · by introduction2:17:58 · ≈ 11:17 AM

Okay So if we went with this then that would subtract that

GuestHarry HaganTax CollectorProposedself-stated2:18:01 · ≈ 11:18 AM

absolutely

GuestLavininoProposed · by introduction2:18:02 · ≈ 11:18 AM

And the only other way to do this would be to have a project that matched up with another enterprise fund that could take over the debt service.

GuestHarry HaganTax CollectorProposedself-stated2:18:10 · ≈ 11:18 AM

Right, and as Bob mentioned, you know, the rapidity of nine years or ten years left on this really makes it difficult to find a project so this really lined up nicely.

GuestLavininoProposed · by introduction2:18:20 · ≈ 11:18 AM

Okay, thank you.

GuestHarry HaganTax CollectorProposedself-stated2:18:22 · ≈ 11:18 AM

Tim if you could

UnidentifiedUnidentified speaker 16Proposed2:18:23 · ≈ 11:18 AM

switch back one slide? So on this slide is the DAAC's recommendation for how to reallocate the RZEB portions of the proceeds. It's approximately 2.6 million that needed to be reallocated and the recommendation was that some money, the money had to go to the two other projects that we submitted for the application when we received the RZEs in the first place so that's the Emergency Operations Center And the public defender remodel.

When we submitted the application,

UnidentifiedUnidentified speaker 9Proposed2:18:56 · ≈ 11:18 AM

Mr. Nesbitt, you know that's in the letter that is being sent by Mr. Hagan when you said it's going to two projects? It's actually going to three.

UnidentifiedUnidentified speaker 16Proposed2:19:08 · ≈ 11:19 AM

Correct. Thank you for that. It is three. So there are three projects and our recommendation here does allocate money to all three original projects. That's correct. So approximately $600,000 is being recommended to be added to the public defender remodel project. $200,000 to a new roof over the remodeled area and $400,000 to refurbishing the elevator in the courthouse. This is approximately two-thirds of the cost of that elevator And then 800,000 is being recommended to go to the Emergency Operations Center.

Approximately 250,000 for audio-visual equipment and approximately 550,000 for finishing out the enhanced computer room in that facility. And then finally as indicated it's recommended that approximately 1.2 million I don't know if reallocated is the right word, but be reallocated to a remodel of this building. An addition and remodel of this building which we believe is still within the definition of what was originally submitted to CEDLAC. So what we would get from this 1.2 million is a very scaled down version of the original vision Which is a nicer board hearing room, lobby and maybe some improvements to some of the offices. And we would also include in this 1.2 million an emergency generator so that this building worst case scenario could potentially operate as a secondary EOC if for whatever reason the primary EOC was inoperable.

So we talked about this slide. The remaining 2.8, the DAC recommended go to the Tegas landfill for the reasons already mentioned and that takes care of recommendations B and C. The bottom two pieces of the puzzle are completely separate actions from the 2010 issuance but we felt this presentation was the appropriate time and venue to take care of Of these action items. So if you can skip to the next slide.

2:21 – 2:3222 turns

UnidentifiedUnidentified speaker 9Proposed2:21:34 · ≈ 11:21 AM

Before we leave this item, Mr. Nesbitt or maybe Mr. Filotti or Mr. Hagan At the beginning of this presentation you mentioned that if we don't move forward with these recommendations, the other option is to do a buyback on the funds. I think it's important to know how much that would cost the county per year if we chose to do that. Yeah, it's a loss.

GuestHarry HaganTax CollectorProposedself-stated2:22:07 · ≈ 11:22 AM

Chair Gray, Supervisor Wolf. We've done some preliminary analysis of that and embedded in this recovery zone bond issuance we have what's called a make whole call. And so essentially what we have to do is do a present value calculation of what the interest stream would be on that part of the debt and make whole the investor. And so the short answer is probably a premium 30% or more is what we have to pay to call that bond.

UnidentifiedUnidentified speaker 9Proposed2:22:41 · ≈ 11:22 AM

And in dollars, that would be?

GuestHarry HaganTax CollectorProposedself-stated2:22:42 · ≈ 11:22 AM

If you call... A year?

UnidentifiedUnidentified speaker 15Proposed2:22:47 · ≈ 11:22 AM

No, one

UnidentifiedUnidentified speaker 9Proposed2:22:48 · ≈ 11:22 AM

time.

GuestHarry HaganTax CollectorProposedself-stated2:22:48 · ≈ 11:22 AM

One time, right. So right. Okay. 30% premium plus.

UnidentifiedUnidentified speaker 9Proposed2:22:52 · ≈ 11:22 AM

Thank you.

UnidentifiedUnidentified speaker 16Proposed2:22:59 · ≈ 11:22 AM

So moving to the 2005 COP issuance, and again some of the attachments showed what the original intent of that issuance was. There were several building projects that majority have been completed The one project that was not completed from this issuance was originally known as the Sheriff Technical Services Building. The idea for that building started probably in 2003, 2004. It started as one idea and was re-scoped after the bonds were issued and became a project to add 50 beds in the basement of the main jail and an addition and remodel to the sheriff headquarter building in Goleta.

The 50 beds, as I think was mentioned earlier in this meeting are done and I believe we're moving towards making those beds operational soon. That portion of the project, I don't remember the total cost maybe six seven hundred thousand dollars. The remodel and addition to the sheriff headquarters project approximately a five million dollar project design It was completed, it was put out to bid and the project was put on hold.

And the DAC recommended that that project not proceed but that instead the proceeds that are remaining approximately 4.3 million be reallocated as shown in this slide. 1.8 million to complete payment for the North County Jail site. Approximately $1.8 million maybe it's a little bit more than that $1.2 million to do a jail kitchen and sewer replacement maintenance project at the main jail. Approximately 1.1 million would go towards a complete renovation, well this is phase one of what is really probably a six million dollar project. And this six million dollar project is in the county CIP and this project completely renovates and overhauls the heating ventilation and air conditioning equipment in the Santa Barbara courthouse. This 1.1 million we're envisioning would be the first phase of a multi-phase multi year project Funding to be determined for the remaining phases down the road.

And then finally, $200,000 to complete the funding for the refurbishment of the courthouse jail mentioned earlier that $400,000 was coming from the RZEVs for that project. That was two-thirds of the cost of the project. The other third we're recommending come from these tax exempt COPs that were issued in 2005. So the total cost of the elevator refurbishment project is $600,000.

And these recommendations are exactly the Debt Advisory Committee's recommendations from the March meeting. And then finally, Recommendation D-E. The Debt Advisory Committee also made a recommendation on a couple other projects from the 2005 issuance. The Isla Vista Foot Patrol Project and the Lompoc Sheriff Fire Substation, I think it's Station 51. They're both completed but funds were left over.

Both projects came in under budget and there is approximately $500,000 left over in the project fund. The Debt Advisory Committee recommended that this These proceeds also go to the Tegas Landfill Liner Project. Since the Debt Advisory Committee, staff has had discussions with both bond counsel and representatives from CEDLAC and determined that for a variety of reasons that was not an easy Substitution to make and that the better substitution or recommendation was simply to pay down the debt service on that issuance.

So it's approximately $500,000 and this would in essence be a direct $500,000 saving to the general fund by using these proceeds to pay down the debt service that would free up money from the general fund that was to be used to pay down this debt service. And that concludes our presentation. We'll be happy to take other questions and as was mentioned in the introduction, there was staff from all three of our departments that were involved. And although the puzzle looks quite simple on the slide it was fairly complicated getting here and we put in a lot of work to try to put these pieces together. Thank you.

UnidentifiedChairProposed · by role2:27:44 · ≈ 11:27 AM

Thank you for real an excellent presentation and it didn't look simple believe me Board members, we have no public comment. Supervisor Labadino?

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.652:27:56 · ≈ 11:27 AM

Thank you Madam Chair. First off Bob I hate puzzles so I want to say that right off. But you know for me looking at this thing the easy thing would have been for us to do would be to just have moved forward down a path that I don't think served the taxpayer well. So You know, I know this wasn't an easy thing to do. And when people right now are looking at public employees, I think this is a perfect example of public employees that I'd put up against anybody in the private sector right here. This brain trust that we had came together on something that wasn't easy.

I don't think the public opinion was there to support the project that we had. Like I said, the easy thing would have been for us to just go forward with it but You know, I think it's a good day. It took creative thinking. The winners today, I think are the taxpayers. We're going to... All you have to do is look at what our debt service is right now and the ratings that we have that we know that we've got the brain trust in place as long as it's legal, as Supervisor Carbajal pointed out.

I think this is the path that I would like to see us go down and I really appreciate all the work that it took from all of you to make it happen.

UnidentifiedChairProposed · by role2:29:16 · ≈ 11:29 AM

Thank you. Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed2:29:18 · ≈ 11:29 AM

Thank you, I'll be voting for this obviously I think this is a creative way of addressing many win-wins The only thing I'll remind us is that it won't be too prudent for the taxpayers if we end up doing a call and losing $3.9 million of what otherwise could have gone towards a project to have Bert in hand, so losing money 3.9 none of us want. So I'll be voting for this. I feel comfortable in the assurance That I got from all our, as Mr. Lavinino called, our brain trust, our treasurer, our auditor, our legal counsel, our CEO and I think it looks like a win-win so...

GuestLavininoProposed · by introduction2:30:03 · ≈ 11:30 AM

Thank you supervisor. Supervisor Farr? Thank you Madam Chair. I will be supporting it as well and again my thanks to The whole team that's worked on this over a number of months, just to stay focused on the general fund again. So of the three point what how many million that came out of the general fund for debt service?

GuestHarry HaganTax CollectorProposedself-stated2:30:24 · ≈ 11:30 AM

3.184

GuestLavininoProposed · by introduction2:30:31 · ≈ 11:30 AM

Okay, so now we have 300. If we go ahead and take all these actions and if everything goes forward as it is here, we have $372,000 a year ongoing money that would be reduced by as well as a one-time $500,000 amount that will go against this next year? That's correct. So of the 3.1 million, we would be able to subtract $872, 000 from that? That's correct.

GuestHarry HaganTax CollectorProposedself-stated2:30:57 · ≈ 11:30 AM

Okay

GuestLavininoProposed · by introduction2:30:58 · ≈ 11:30 AM

thank you.

GuestHarry HaganTax CollectorProposedself-stated2:30:59 · ≈ 11:30 AM

Approximately.

GuestLavininoProposed · by introduction2:31:00 · ≈ 11:31 AM

Supervisor Wolf.

UnidentifiedUnidentified speaker 9Proposed2:31:03 · ≈ 11:31 AM

Thank you Madam Chair, I also want to again thank this incredible team and support staff. I know that some of these discussions were long-winded, and we had a lot of input. But while it's not one of the sexiest things that we have on this list, I think one of the things that I'm very excited about is that we're getting a sewer replacement in the jail. That's exciting!

Well, it is. And so I do think this list of people look at it and they look at some of the things that we're doing on the courthouse as well and in the EOC that we're not just throwing money away. We're repairing. It's a very large maintenance package as I look at it. I appreciate what Supervisor Lavagnino said, and I totally agree. And I'd be happy to move this item.

UnidentifiedChairProposed · by role2:32:09 · ≈ 11:32 AM

Thank you. Is there a second? All in favor say aye. Aye. Thank you very much. What an outstanding presentation! We're ready to go to item number three And I'm just going to move us right along because we're going to try and end up as quickly as possible.

2:32 – 2:4022 turns

UnidentifiedUnidentified speaker 1Proposed2:32:28 · ≈ 11:32 AM

Madam Chair, members of the board item three is from the county executive office in the Office of Emergency Services hearing to consider recommendations regarding a Nuclear Regulatory Commission update and report from Pacific Gas & Electric on the Diablo nuclear power plant.

UnidentifiedChairProposed · by role2:32:43 · ≈ 11:32 AM

I don't think so. I think we can make it. I think we can make it but it's up to you It can have a muffin. Six speakers, okay we might make it then! I know isn't it amazing how you just get nasty when you get to be the chair? No

CommentGwen WoodProposed2:33:07 · ≈ 11:33 AM

lunch,

UnidentifiedUnidentified speaker 2Proposed2:33:08 · ≈ 11:33 AM

no!

UnidentifiedUnidentified speaker 11Proposed2:33:12 · ≈ 11:33 AM

It kind of is, we sit next to each other. Mr. Harris what do you have for us?

UnidentifiedUnidentified speaker 17Proposed2:33:20 · ≈ 11:33 AM

Madam Chair, members of the board. Michael Harris with the County Executive Office, Office for Emergency Services. We're here today with staff from Pacific Gas and Electric as you recall as a result of the 10 March Japanese earthquake And also as sort of a parallel process, Pacific Gas and Electric shared a letter that they had written to the NRC regarding their relicensing. The board asked for two different actions if we could. One was a briefing from PG&E regarding Diablo, whatever lessons they may preliminary have learned from the Japanese earthquake and any questions that the board may have regarding relicensing seismic statuses, the facility at Diablo et cetera.

The second thing that the board asked for was a briefing from the Nuclear Regulatory Commission regarding essentially the same items. We're here today with PG&E to provide that briefing, the Nuclear Regulatory Commission briefing is being scheduled for 16 June which is a Thursday and that of course will be appropriately noticed for the public At this time, I'll go ahead and turn it over to Patricia Wilmore. Patricia is a local area manager for governmental relations with PG&E. They have a presentation and certainly are available for any questions from the board as you may wish.

PresenterPatricia Wilmoreyou todayProposedself-stated2:34:39 · ≈ 11:34 AM

Good morning, Madam Chair and members of the Board. As mentioned I am Patricia Wilmore. We're very happy to be here with you today. Thank you for the invitation. And I'm going to introduce to you Gerald Strickland who will be making the presentation. Gerald is a Senior Regional Manager for PG&E. He is a civil engineer of almost 40 years standing. He was the Senior Civil Engineer at Diablo Canyon and he implemented and developed our spent fuel storage installation. So with that, Joe will make the presentation and we are of course available for your questions.

UnidentifiedChairProposed · by role2:35:14 · ≈ 11:35 AM

Thank you Ms.

UnidentifiedUnidentified speaker 18Proposed2:35:23 · ≈ 11:35 AM

Wilmer. Madam Chair, Supervisors thank you again for inviting me to speak before you. The topical areas that I really want to focus on today is the Fukushima event and then how that event It compares to the design basis for Diablo Canyon. From there I'll talk about spent fuel storage and what our facilities look like, what the program looks like and then from there talk about some of the severe accident mitigation plans and programs that we have in place at Diablo.

So with that... As you each know, there was a significant event in Japan that caused substantial damage. What has not been publicized much is that after the large event, the safety systems at the nuclear power plant actually functioned the way that they were designed to. The plants shut down safely and in turn went into appropriate cooling. What then happened was that approximately an hour later a large tsunami that was beyond the design basis of the plant overwhelmed the plant and then in turn caused mud water, other debris to enter their switchgear rooms and their diesel generators that were providing backup power to all the safety functions and safety systems in the plant.

So within a relatively short period of time, the plant did not have adequate cooling and in turn continued to overheat and we know the rest of the story as to the current condition of the plant. What I wanted to note was some of the design differences.

UnidentifiedChairProposed · by role2:37:03 · ≈ 11:37 AM

Yes, there's a question.

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.652:37:04 · ≈ 11:37 AM

Mr. Strickland? Yes. I don't know the rest of the story on that. That's the question. I mean what is the status of the plant right now? It kind of fell off the radar screen.

UnidentifiedUnidentified speaker 18Proposed2:37:12 · ≈ 11:37 AM

So currently they're still taking appropriate actions to be able to We provide power to the site. Most of the units do have off-site power provided now. They've brought in additional pumps to provide cooling water to both reactors and to spent fuel pools. They have quite an issue before them, to try and clear debris and be able to provide access to the specific areas within the plant to be able to continue to deal with this.

They're looking at it being a 9 month to 12 month endeavor for them to finally get 100% containment control within the facilities. So they have a substantial issue before them still.

UnidentifiedChairProposed · by role2:37:57 · ≈ 11:37 AM

Mr. Carbajal?

UnidentifiedUnidentified speaker 6Proposed2:37:59 · ≈ 11:37 AM

Thank you Madam Chair and I guess to not sugar coat the magnitude of the disaster, what are the implications that they're dealing with now in terms of the radiation that leaked, the ocean, the people? What's the radius of that implication? How severe and chaotic is it?

UnidentifiedUnidentified speaker 18Proposed2:38:21 · ≈ 11:38 AM

I believe at this point in time that the levels of contamination that have entered into the ocean and other food stream products has through the air, water and so forth has been substantially reduced now that The fires within the facility are out. And so in turn right now, the focus is really on the aspects of how do we bring the plant back into a position to where it's in safe shutdown for each one of the units? So that's the critical focus of the plan today.

GuestLavininoProposed · by introduction2:38:58 · ≈ 11:38 AM

Supervisor Farr. Thank you Madam Chair. Mr. Strickland actually I like supervisor Carbajal and it kind of had been much in the news and then we weren't hearing about it recently But I did happen to see, I think it was Good Morning America this morning and they actually had a little piece on it where they were allowing people that lived within one of those concentric circles of it to come back in. And they're all in moon suits. And they're all being taken in so that they can go into their houses again temporarily. So I guess I would be interested to know, you know there's the design capability then there's what happened with that but as part of that I know that facilities like this have certain hazard footprints depending on what kind of event there might be from that and so I'd be interested to know what the hazard footprint was for this facility in Japan And then whether that was exceeded as far as this event and how far out that was.

And then I'm going to want to know the same thing for Diablo. Thank you, Madam Chair.

UnidentifiedUnidentified speaker 18Proposed2:40:03 · ≈ 11:40 AM

Okay. I'm not in a position to speak from the emergency planning position for the Fuchijima plant. But I know that they went through the process of setting a 30-mile exclusion zone for evacuations be able to better control the territory around the plant itself. Diablo Canyon has an exclusion zone also that we manage, but that's outside the realm of my authority and my responsibility, so I don't have the information to speak to it.

GuestLavininoProposed · by introduction2:40:40 · ≈ 11:40 AM

But Mr. Strickland what is the exclusion zone around Diablo Canyon? If it was 30 miles around the one in Japan...

UnidentifiedUnidentified speaker 18Proposed2:40:46 · ≈ 11:40 AM

Around Diablo Canyon it's 10 miles.

GuestLavininoProposed · by introduction2:40:48 · ≈ 11:40 AM

It's 10 miles?

UnidentifiedUnidentified speaker 18Proposed2:40:49 · ≈ 11:40 AM

That's correct.

GuestLavininoProposed · by introduction2:40:50 · ≈ 11:40 AM

Right now? Thank you.

2:40 – 2:4612 turns

UnidentifiedUnidentified speaker 18Proposed2:40:54 · ≈ 11:40 AM

So one of the key points that I want to emphasize is that a lot of the information in the media focuses on the size of the event in Japan as being a 9.0 magnitude earthquake on the Richter scale Unfortunately, when you start talking Richter scale that's not always the complete picture. That so much of it depends on the type of fault, the proximity to the fault and then the depth of the earthquake on that fault. So I think what is more critical to look at when you're looking at a facility is what is the ground acceleration that the plants are designed for? For the Fukushima plant, the ground acceleration that they were designed for was .36 G.

When you compare that to the design of Diablo Canyon, Diablo Canyon is designed for almost twice or an excess of twice that with 0.75 G. Some of the other differences is that Diablo Canyon is founded on rock while the Japanese plants were more on a softer soil type facility. Again when you look at size of the tsunami The plant itself in Japan was designed for approximately a 21-foot tsunami, and they did see one that was substantially higher in excess of approximately 33 feet.

Diablo Canyon even though the topography of the offshore basin off of Diablo is different were designed for a total of 35 feet of run up. That 35 feet also includes conservative assumptions of high tide High storm surge, and then the maximum projected tsunami on top of that. So a lot of conservatism.

UnidentifiedUnidentified speaker 9Proposed2:42:40 · ≈ 11:42 AM

Madam Chair? Yes ma'am. Mr. Strickland as part of our packet we received this nuclear crisis report from the Congressional Research Service and it talks about the height of the tsunami as actually being 46 feet they said 14 meters Or 46 feet, which is so I'm wondering where you got your information.

UnidentifiedUnidentified speaker 18Proposed2:43:03 · ≈ 11:43 AM

And I believe you're correct that my memory was 46 feet also but the slide that was developed has the wrong number on it. So you're correct.

UnidentifiedUnidentified speaker 9Proposed2:43:12 · ≈ 11:43 AM

OK thank you. Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed2:43:19 · ≈ 11:43 AM

I'll let you finish because I have a bunch of questions and I don't want to just Pepper, are you with him right now?

UnidentifiedChairProposed · by role2:43:24 · ≈ 11:43 AM

And probably it would be handy if we really could because we just sort of lose context.

UnidentifiedUnidentified speaker 3Proposed2:43:29 · ≈ 11:43 AM

OK.

UnidentifiedChairProposed · by role2:43:29 · ≈ 11:43 AM

We'll try our best not to. Yeah. So we will try our

UnidentifiedUnidentified speaker 3Proposed2:43:34 · ≈ 11:43 AM

best.

UnidentifiedChairProposed · by role2:43:35 · ≈ 11:43 AM

Thank

UnidentifiedUnidentified speaker 18Proposed2:43:35 · ≈ 11:43 AM

you. So some of the critical design features for Diablo Canyon is that down in our intake structure we have a series of pumps that are part of our auxiliary saltwater system that then provide cooling water up to the secondary side of the plant during normal operation and then are also required as part of the mitigation in event that we bring the power down on the plant, be it a blackout on the plant or other core shutdown.

So a key point with that you'll see on slide in a moment is those pumps protect it inside reinforced concrete vaults in the intake structure and have submarine doors to be able to prevent water intrusion in the areas. Then, to be able to continue to have air circulation into those areas we have large snorkels that extend out the top of the intake structure until an elevation of 45 feet so provides some substantial margin then to keep a tsunami or other waves from being able to come in and inundate those pumps In addition, we also have diesel generators that in case we lose off-site power have the ability then to continue to provide house power to the plant and power to emergency equipment that keeps our core cool.

We have six diesel generators three for each unit. The minimum required to be able to provide cooling for each unit is one of the three diesels operating We also have diesel fuel oil tanks that are underground and protected, that have the ability to be able to provide seven days worth of operation of those diesels considering that you have all six diesels running at full power for those seven days. So if you only have one diesel per unit running then that increases the number of days of operation without having to get additional diesel fuel in.

And again, those diesel generators are at elevation 85. So they're substantially above sea level. Makeup water for the plant. We have a pair of raw water reservoirs that are at elevation 310 feet up behind the plant. You'll see that on a subsequent photo in a moment. But those two reservoirs have the ability of providing up to 5 million gallons of water to the plant And a key point on the slide is that it's all gravity fed. So piping is underground, protected and in turn has the ability to be able to then provide additional cooling water to the plant.

Another feature that Diablo has that the Japanese... Madam

UnidentifiedUnidentified speaker 6Proposed2:46:26 · ≈ 11:46 AM

Chair? How many days sustainability would that water in those reservoirs provide for?

2:46 – 2:5717 turns

UnidentifiedUnidentified speaker 18Proposed2:46:37 · ≈ 11:46 AM

It's a difficult question for me to answer in the aspect of that the amount of makeup water that you need is not substantial. But my best answer to that would be that you'd have in excess of 20 days of water supply to the plant from makeup under those conditions. That gives you an adequate time to be able to restore our other systems where we have our own desalination plant, where we make our own fresh water At one point in time it was the largest desalination plant on the West Coast.

So another point with it is that it's different between us and the Japanese plants, is that we have steam-driven feed water pumps as a backup source of being able to continue to provide water into our reactor coolant system. And so with that, we simply rely on rejected steam to be able to run these pumps. So that it's just an additional safety feature in case your main feed water pumps are not available. So just additional redundancy.

Containment structures and spent fuel pools are founded in rock. A big difference in the design of the plants in Japan is that you've probably seen some of the schematics cut through the plant, that their spent fuel pools were actually very high within their structures with two basement structures underneath the spent fuel pools so it actually higher in structure means that there's much more acceleration that those structures would see and then there's also more of a chance that you could damage those pools And allow valuable water to leak out the sides or bottom of those pools. Our spent fuel pools are well founded within the base rock in the area.

We talked about the six diesel generators, we also do have the ability that if you somehow had lost all three diesels on one unit that you can cross tie between units and be able to feed power back and forth between the two units. And we talked about the diesel fuel oil tanks Last bullet on this is we're unusual in that with the remoteness of the plant, that we're one of the few nuclear plants that has our own onsite fire department. And that is staffed 24 hours a day and enables us to be able to use our two fire engines and other fire equipment to respond to any issues medical or fire related at the plant.

This just shows a schematic that shows you the differences between Diablo Canyon and Fukushima as far as how close we are to the actual tidal zones, to sea level. And that you can see that base elevations of plant at elevation 85 are substantially higher than any of the structures at Fukushima.

UnidentifiedChairProposed · by role2:49:36 · ≈ 11:49 AM

Mr. Strickland, just for one moment. Mr. Russell, so that you folks... It looks to be it's 12 o'clock. He has 20 slides and we have six speakers. So it looks to me like this issue will go at least till 1230 maybe quarter till 1.00. So we're going to go ahead and order lunch for the board and we'll eat in 15-20 minutes and won't have to leave but maybe you folks want to go get your lunch and then be back It may be 1.30 is what I'm thinking, does that sound right to everyone?

Okay so now we know what we're doing and so Sandy order lunch thank you.

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.652:50:17 · ≈ 11:50 AM

Sandy don't order me one.

UnidentifiedChairProposed · by role2:50:21 · ≈ 11:50 AM

Okay back on thank you excuse the interruption.

UnidentifiedUnidentified speaker 18Proposed2:50:24 · ≈ 11:50 AM

No problem and so with this slide it's simply I want to show some of the elevations of plant hopefully what you have in front of you is a little clearer than this overhead The intake structure is in this region here, and the area that we were concerned about was the snorkels for our oxalate water system. And the top of those snorkels are at elevation 45 as I noted before.

The power block itself up at the power plant is at elevation 85 feet. In this region in the plant is where we house the six diesel generators. And then the water reservoirs that hold the five million gallons of water. They're up on the hill here, you'll see it on a different slide that gives a better perspective but they're at elevation 310 feet and then the spent fuel pools I'll show you from the next slide or subsequent slide that they're at elevation 140 feet so again there are substantially above sea level.

So this is from the back of plant looking toward the ocean You see the two containment structures and this is the fuel handling building, the superstructure over where the pools are. The reinforced concrete structure in this area is where the spent fuel pools are. The grade where you see our large water storage tanks is 115 feet above sea level The spent fuel itself that's in the spent fuel pools, the top of the fuels about elevation 113 feet. So it's actually below the ground level in this area here.

These water tanks are a mixture of makeup water for the plant and firewater for the plant and can be used for cooling and for fire protection.

UnidentifiedUnidentified speaker 6Proposed2:52:13 · ≈ 11:52 AM

Madam Chair? Supervisor... Could you go back to the previous slide?

UnidentifiedUnidentified speaker 18Proposed2:52:15 · ≈ 11:52 AM

Sure. One more?

UnidentifiedUnidentified speaker 6Proposed2:52:17 · ≈ 11:52 AM

No one more. You know, I actually went on a visit and a tour of Diablo Canyon a few months ago. I wanted to learn more about it and I got a lot of very good information. I really appreciate the tour but go back in earlier the snorkels you made it seem that they were very high or what are the snorkels for?

UnidentifiedUnidentified speaker 18Proposed2:52:40 · ≈ 11:52 AM

There are vents essentially for auxiliary saltwater pumps that you need to, when operating these large pumps, be able to provide ventilation through these rooms. And so there are large pipe structures that extend up out of the intake structure itself. Hopefully you guys have hard copies that you can see a little better. We do, but there are structures here.

UnidentifiedUnidentified speaker 6Proposed2:53:05 · ≈ 11:53 AM

Is that really high because we talk about how high the facility is? That doesn't look high for me at all. At the top of the snorkels is elevation 45 feet. And we said that the tsunami reached 46 feet in Japan? In Japan,

UnidentifiedUnidentified speaker 18Proposed2:53:20 · ≈ 11:53 AM

yeah.

UnidentifiedUnidentified speaker 6Proposed2:53:21 · ≈ 11:53 AM

So I guess I just raised that as a what about us and if they reach 46 feet and we're at 45 feet anyways that's one. Okay. And two isn't this here right here where the discharge water cooling water comes out? That's correct. The actual vents. I remember that caught my attention when I was there but what if you have a tsunami inundates that entire area, what is the gravity flow of the hydrology of the water actually coming out? Is that impeded in any way or does that continue to be normal?

What happens if that entire area right there is inundated with a tsunami of mud and what have you. So good

UnidentifiedUnidentified speaker 18Proposed2:53:59 · ≈ 11:53 AM

questions. The first point I want to make is that in the design for Diablo Canyon What we actually did is, we went through and modeled the coves for both the intake and the discharge structure. These were scale models that also then extended out to look at the actual topography of the ocean floor. The basis for that was to get a better understanding how the tsunami wave would interact with the coastline along this area In a turn, how it would run up on Diablo Canyon. So with that one of the points that you made earlier was that even though we designed for a certain height to tsunami with storm surge and with high tide That you also will end up then with once it hits the coastal bluff, it will continue to run up that bluff some distance.

That distance that it goes up the bluff is substantially lower than the elevation 85 feet that the plant facilities are founded on although We do have some critical structures that are in the bluff as it goes up, and so each of those areas have been hardened with a system called gavions which are wire baskets filled with rocks that are underground to be able to protect any piping, any electrical cables and so forth in that area.

As far as the discharge structure, the discharge does see changes in elevation of the ocean that as we see For storm season, you see tremendous surge in the height of the sea and that does change the hydraulic profile for the effluent that's being discharged out of the circuit. circulating water tunnels at the discharge. And so that's all designed in as part of the design basis of the plant to look at what happens with periodic surges that then cause water not to flow as freely out as what it normally does with average sea levels.

So you do see a backup or stacking under a tsunami type event.

UnidentifiedUnidentified speaker 6Proposed2:56:16 · ≈ 11:56 AM

Because a tsunami could possibly bring, my understanding, a bunch of debris and actually plug it out Wouldn't

UnidentifiedUnidentified speaker 18Proposed2:56:23 · ≈ 11:56 AM

plug it up, not with the amount of force and the volume of water that you see coming out of the discharge.

UnidentifiedUnidentified speaker 13Proposed2:56:29 · ≈ 11:56 AM

Thank you.

UnidentifiedUnidentified speaker 18Proposed2:56:31 · ≈ 11:56 AM

Good question. So this is another representation of the plant where the power plant itself at elevation 85 in front 115 in the back areas. These were the water reservoirs I've talked about and then right across from the water reservoirs is Independent spent fuel storage and installation for where we house our spent nuclear fuel for the dry storage systems. So it's at elevation 310 feet also.

2:57 – 3:1724 turns

GuestLavininoProposed · by introduction2:57:04 · ≈ 11:57 AM

Supervisor Farr? Thank you, Madam Chair. Maybe you're about to explain this Mr. Strickland but I would be interested to know the difference between kind of the wet storage and the dry storage.

UnidentifiedUnidentified speaker 18Proposed2:57:14 · ≈ 11:57 AM

Yes. Okay so... We currently Have approximately 2,600... Many people call it spent fuel assemblies. I typically title it used fuel because we still have the ability to reprocess spent fuel and be able to reuse about 92% of that fuel if federal policy changes at some point in

GuestLavininoProposed · by introduction2:57:36 · ≈ 11:57 AM

time.

UnidentifiedUnidentified speaker 18Proposed2:57:37 · ≈ 11:57 AM

Excuse me

GuestLavininoProposed · by introduction2:57:38 · ≈ 11:57 AM

is the 2,600 what's being used since the plant first went online?

UnidentifiedUnidentified speaker 18Proposed2:57:42 · ≈ 11:57 AM

That's correct. So on the license life of the plant so far discharged approximately 2,600 fuel assemblies from the reactor.

GuestLavininoProposed · by introduction2:57:52 · ≈ 11:57 AM

Okay and about how many per year? So

UnidentifiedUnidentified speaker 18Proposed2:57:55 · ≈ 11:57 AM

we're in the middle of a refueling outage right now for unit two and in this outage we will discharge 88 spent fuel assemblies into the wet storage spent fuel pools.

GuestLavininoProposed · by introduction2:58:07 · ≈ 11:58 AM

Okay but for the plant as a whole how many

UnidentifiedUnidentified speaker 18Proposed2:58:11 · ≈ 11:58 AM

That's the total for one

UnidentifiedUnidentified speaker 2Proposed2:58:14 · ≈ 11:58 AM

unit.

UnidentifiedUnidentified speaker 18Proposed2:58:15 · ≈ 11:58 AM

And we'll operate then for a year and a half before we then enter another refueling outage. So, for this year there will be 88 that will go into the spent fuel pools. Next year in the April time frame we'll have the next Unit 1 outage and at that point in time it will be 92 fuel assemblies that will be discharged from Unit 1.

GuestLavininoProposed · by introduction2:58:35 · ≈ 11:58 AM

And what is the capacity overall at the plant for the spent rods?

UnidentifiedUnidentified speaker 18Proposed2:58:39 · ≈ 11:58 AM

The capacity right now is just under 2,700 fuel assemblies for the spent fuel pools. So that's where it becomes critical that we continue to move spent fuel out of wet storage into dry storage. So a little background with it as we discharge fuel that's been used in three cycles of operation, it then gets placed in wet storage and the spent fuel pools Before a spent fuel assembly can become a candidate to be placed into a dry storage system, it has to be in the spent fuel pools for a minimum of five years to be able to discharge some of the heat that is being generated by the fuel as it continues to decay.

So with that, what we do is we have a program in place that will systematically load a combination of fuel that's been in there for a longer period of time. Older colder fuel with some of the younger fuel that's been out of the reactor for only five or six years. It's called regionalized storage so thereby we put the younger hotter fuel in the middle of a multipurpose canister and in turn put the older colder fuel on the outside it helps with the heat transfer

GuestLavininoProposed · by introduction2:59:57 · ≈ 11:59 AM

And then how long do they have to be in coal storage?

UnidentifiedUnidentified speaker 18Proposed3:00:00 · ≈ 12:00 PM

So from there, dry storage is really an interim solution until the federal government Department of Energy assumes their responsibility and collects the spent fuel from the nuclear facilities. So it's an ongoing issue that every nuclear plant is having to deal with at this point in time. Plants were designed really to store a minimum amount of spent nuclear fuel. But when under the Carter administration in the late 1970s, the policy for reprocessing was canceled and as a reaction to that Nuclear Waste Policy Act was passed in 1982 that mandated that the Department of Energy assume responsibilities for spent fuel and develop a federal repository, Yucca Mountain.

And with Yucca Mountain now, essentially who knows where it is. There's a number of court challenges going forth with it right now for the canceling of the program but what it's done as its caused the nuclear utilities to continue look forward for the future for what they're gonna have to do to store spent fuel for a longer period of time rather than a shorter period of time.

For Diablo We took the steps of developing the dry storage process and dry storage facility and sized it, permitted it, and licensed it with the Nuclear Regulatory Commission to be able to accommodate all of the fuel discharged from Diablo Canyon for its 40-year license life. We constructed the base infrastructure for the facility to be able to hold all that fuel but in turn it has a series seven foundations we installed just the first two foundations capable of holding 40 casts instead of a total of 138. All that was on the premise that maybe the federal government will assume the responsibility sooner rather than later and second, that we wanted to be responsive to changes in technology and be able to then adjust the type of technology that we use But what we found is that the technology that we've implemented from day one really is the best technology available worldwide.

And we'll speak to that in just a moment. It's an area that I spent a lot of time with and am very passionate about.

GuestLavininoProposed · by introduction3:02:24 · ≈ 12:02 PM

Actually, but I'm still trying to get to the number for how long this has to be stored for.

UnidentifiedUnidentified speaker 18Proposed3:02:29 · ≈ 12:02 PM

Well for Diablo if you look at the commodities, the storage systems that we utilize. You can safely store spent fuel in those and from what the NRC has provided input on greater than a hundred years. We hope that's not the case I have an acquaintance that is part of President Obama's blue ribbon panel that is investigating The actions necessary to deal with No Yucca Mountain and some of the input that I've received from him is that the recommendations that they'll probably make will be to develop interim storage facilities, to be able to collect fuel from nuclear plants.

But that is down the road. What they're looking at is that for the interim, while plants are continuing to operate, that the spent fuel that's generated through the operation of that plant would continue to be stored at that power plant until they cease to operate.

GuestLavininoProposed · by introduction3:03:33 · ≈ 12:03 PM

Well thank you and the reason I'm asking these questions is obviously when we've been following the situation in Japan it was not just to the plant itself but to the fact that they were concerned about the cooling of the spent rocks and the danger that creates. And so it sounds like what you're telling me, that they're really hot for

UnidentifiedUnidentified speaker 2Proposed3:03:57 · ≈ 12:03 PM

five years

GuestLavininoProposed · by introduction3:03:59 · ≈ 12:03 PM

and then you may have the capacity to keep them there for up to 100 years even though that would far exceed with existing plant life That's correct. But a hundred years is not enough at some point in time that still considered interim, right? They need to go someplace else for how long?

UnidentifiedUnidentified speaker 18Proposed3:04:16 · ≈ 12:04 PM

That's correct. So much of it depends on federal policy. Long-term storage was meant that the federal government would have a repository and they deposited in the repository for perpetuity The systems that they use to package the fuel, though, still gives the federal government at some point in time the opportunity to be able to extract those spent fuel assemblies and be able to extract the spent fuel from them and reprocess and reuse that commodity.

GuestLavininoProposed · by introduction3:04:52 · ≈ 12:04 PM

Thank you. Thank you much.

UnidentifiedUnidentified speaker 18Proposed3:04:54 · ≈ 12:04 PM

Let's go back to the other slide one second. So spent fuel pools, they're reinforced concrete structures. Their walls are four to six feet thick reinforced concrete with a stainless steel liner. There is a minimum of 23 feet of borated water above the spent fuel assemblies at all points in time. One of the big differences between dry storage and wet storage is that wet storage does require heat exchangers and filters to be able to remove that residual heat and continue to clean the water through time. Dry storage doesn't, it's all passive.

Dry cast storage. The fuel is put in multi-purpose canisters that are built out of stainless steel, fully welded shut. It has an inert helium gas that is backfilled on the canister so it protects the materials of the spent fuel assemblies and the storage container. They're then stored up at our storage facility and cast over 20 feet high. Next please. This is a shot of our spent fuel pool. It's a little deceptive for depth, but the distance down to the rack structures that you see here is the 23 feet of water. Each one of these racks has the ability to have one spent fuel assembly placed in them.

Next please. Dry storage, talk about multipurpose canister. There is a rack system inside each one of these canisters, 32 fuel assemblies going to each one. It's a 9-inch stainless steel lid on top that's welded in place and then backfilled with helium. The big storage overpacks that you see here are large. They're approximately 340,000 pounds apiece when loaded They're built out of two steel vessels each an inch thick with two and a half feet of concrete between the steel vessels. And we're the only facility in the world that anchors our cask to an embedment structure. The foundation system here is eight feet thick, and under each one of the casks has a large steel structure to be able to then transfer those seismic loads down into the base mat structure.

With Diablo Canyon, we had the option of using what's called a general license process to be able to simply take a standard design storage system and use it at Diablo. We chose to go a different route and use what's called a site-specific licensing process whereby we were able to change the design of the system to add more redundancy to it making a more robust designed system to deal with higher seismic input So even though the first slide or second slide showed that our design base earthquake for Diablo Canyon is 0.75 G, these storage casks are actually designed to be able to take up to 1.5 G for a ground acceleration so lot of conservatism.

Next please. Another shot of the facility that shows a number of casks placed on the slab itself. And this was the area out in this direction that we're able to then expand the facility to accommodate all the fuel discharged from Diablo's 40-year licensed life. So next point is severe and extreme accident responses, and these are considered beyond design base incidents where Not only do we have a set of design bases for Diablo, but we also have to then be able to prove that we have procedures and processes in place to be able to respond to accidents that are beyond what are projected for the plant. So with this I simply want to note that we do have these procedures and process to be able to control reactor coolant system pressure and temperature We do have the ability to be able to continue to inject additional cooling waters within our steam generators.

We have the ability with our containment structures to be able to not only purge pressure, but also we have hydrogen recombiners to be able to combine hydrogen back into water to prevent hydrogen type explosions of what you saw with the Japanese plant. The procedures, processes and equipment to deal with containment flooding inside our containment structure due to high energy pipeline failures and so forth.

From there we also are required to look at how do you mitigate for a beyond design base incident that even though you've got all these safety features in place How do I make sure that I can continue to provide cooling water to our spent fuel pools in case of an event that takes out all of our pumps and our heat exchangers? And so we have procedures and equipment in place to be able to provide water from water storage tanks or from the reservoirs on top of the hill, to be able to then put water back into these spent fuel pools if you've lost inventory.

We also have actions in place that look at how do you appropriately depressurize your steam generators in the plant and use our atmospheric dump valves on the exteriors of our containment to be able to relieve these pressures. I think the key point that I want to make with that is that after the event in Japan, the NRC provided guidance back to us through on-site regulators to go back and validate that we do have the ability to appropriately take mitigation actions. It's one thing to have procedures in place and all the equipment in place, but some of the questions were how well have you tested the ability for you to respond quickly to being able to put these procedures into place? So as part of that item such as Adding water to the spent fuel pool through these extreme measures, we went through and tested the programs and procedures to be able to make sure that we had the ability to do that within the time frame that we deemed appropriate.

Additional organizational capabilities PG&E is the only utility that maintains a long-term seismic program so What that means is this, as part of the licensing provided to Diablo Canyon through the Nuclear Regulatory Commission there was a mandate that PG&E recognize the fact that we have a higher seismic zone here and in turn that we have a program in place that continues to learn from seismic events around the world. So with that, we have a dedicated geosciences department that studies not only the faulting in our local area but also then continues to be active in the international scientific community for learning from seismic events.

There are a lot of ongoing seismic studies and analysis that I know you're aware of from 2D and 3D studies that were still going through the permitting process on But one point I want to make with that is even though we have our own set of scientists, the bulk of the actual analytical work is performed by the balance of the geotechnical industry. We provide oversight but the actual intellectual work is performed under contract using either USGS, company William Lettice and Associates or other senior consultants. In addition, we talked about fire department that we are staffed full-time two engines, and then our recurring emergency preparedness training where we have an emergency response organization as you know that there are four dedicated teams that rotate through the on-call responsibilities with it.

And that we're required annually to have a minimum of four annual either tabletop drills or full scope drills. So what that does is that continues to train and test the organization that you have the ability to be able to use the procedures and processes to deal with beyond design based incidents with a plan. I talked a little bit about the prompt industry response for the Fukushima event that we have spent time looking at Diablo Canyons beyond design-based events.

And some of those also included security threats. Not going to speak to the reevaluations for our force on force exercises with the Nuclear Regulatory Commission, but that those evaluations that were completed in the last few weeks went very well We've also looked at station blackout, which is loss of all back feet of power from off-site. One thing that we were more responsive to than most other utilities is that we had looked at the station blackout studies many years ago and in turn have C trains full of various electrical equipment be it bushings for switchgear in our switchgears yards or other 500 kV lines to be able to run out to other switching stations. We have those stockpiled for material that's easily accessible.

The last point on this is that with all the utilities have chief nuclear officers, and they've essentially formed a working group under the IMPO organization to be able to look for the longer term at other areas that we may need to apply contingencies. So conclusions with that DCPP, Diablo Canyon. Our critical equipment is protected from flooding by first of all the elevation of the equipment itself and second that the wave heights that are credible for the topography for our area are substantially lower than what you saw in the Japanese event. DCPP is robust and has a redundant emergency backup power capabilities with six diesel generators We store adequate amount of makeup water in our reservoirs behind the plant and have the ability to feed the plant using gravity.

Then, the fault structures offshore in vicinity of Diablo do not have the ability to generate the size of tsunamis that are postulated for the Japanese events. It's been well evaluated by us. The Diablo Canyon plant is reconfirming the capability of our equipment procedures and training to be able to respond beyond design-based events, and we believe that the Nuclear Regulatory Commission is going to continue to provide additional requirements for us to go back and do additional mitigation reviews and responses.

And then the last point with it is that Diablo Canyon Pacific Gas & Electric are committed to continue to learn from the Japanese event and in turn be able to put in place as many measures as necessary to provide additional protection for the facility. In many cases, I think some of the actions that you're going to see is that the Nuclear Regulatory Commission's looking at great detail right now as to what is the amount of inventory of spent nuclear fuel that you do want to keep in your wet storage systems. And so with that, what you may see is an acceleration of utilities moving fuel from wet storage to dry storage. For Diablo Canyon, We currently have on order 12 additional storage casks for spent nuclear fuel that will be here in June. And we've just placed another order for 10 additional casks.

It's a long fabrication process, it takes approximately nine months to fabricate an additional cask and so it was important for us to get into the queue early to be able to get additional casks. So our intent is to continue offloading at a reasonable rate.

3:17 – 3:3123 turns

CommentNathan AlleyProposed3:17:41 · ≈ 12:17 PM

Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed3:17:43 · ≈ 12:17 PM

Thank you Madam Chair. Mr. Strickland, in terms of learned lessons from Japan what have those been and what upgrades has that led to? You mentioned about testing the mitigations but what upgrades are directly a result of that for Diablo Canyon?

UnidentifiedUnidentified speaker 18Proposed3:18:07 · ≈ 12:18 PM

Well, I think it's still too soon to see what type of longer term changes you'll see. But for the immediate, what I thought was real important was the fact of going back and actually physically testing your ability to be able to be ready to respond with these beyond design based procedures and practices. What we found in the case of some of the piping hoses and pumps to be able to provide additional makeup water for spent fuel pools, that it wasn't as easy to implement the process as what we had Anticipate it. And so with that, by actually physically setting the system up running the pumps pumping water you found that there's more involved and so the one thing that we've taken from that is that We need to be very diligent in going back and physically testing our ability to be able to utilize some of these procedures that we typically don't use.

UnidentifiedUnidentified speaker 6Proposed3:19:14 · ≈ 12:19 PM

Madam Chair, if I could just conclude. I appreciate your candor because this is exactly why the public is concerned. We say we're as prudent as we can be but then an incident like this happens and it...we kind of go back and double check and we learn That we could do better and that is what puts fear in so many people. We want to believe that what we have is state of the art, we want to believe that we're as prudent as we can be but that is why people are concerned. So I really appreciate your candor in sharing that.

The last question that I have and I think it's probably more so for the NRC but I'll ask you as well When you consider that this is rated for a 7.5 earthquake, do we really have the most prudent standards in place that we can have for this facility?

UnidentifiedUnidentified speaker 18Proposed3:20:12 · ≈ 12:20 PM

It's a good question and based on the years that I've spent looking at the seismic hazard for Diablo that I do believe The design basis for Diablo from a science perspective is conservative and that the current findings from the shoreline fault investigation is showing that the assumptions, the conclusions made for the Hoshki Fault originally were that we had considered that it had the ability to generate a earthquake larger than what they're concluding today. So I do believe that there is substantial conservatism there.

But the question that you're asking is along the lines of federal policy. And

UnidentifiedChairProposed · by role3:21:02 · ≈ 12:21 PM

let's get to that in just a moment. We have six speakers, and I'm sure they'd like to speak. Your next slides are background. If we need them, we'll go to them later.

UnidentifiedUnidentified speaker 4Proposed3:21:11 · ≈ 12:21 PM

Right. That

UnidentifiedChairProposed · by role3:21:12 · ≈ 12:21 PM

was... We'll go now to the public folks and let them say what they'd like to say, and then if there are other questions here, we will proceed there. So Mr. Allen, who would like to speak? Thank you, Mr. Strickland.

UnidentifiedUnidentified speaker 1Proposed3:21:23 · ≈ 12:21 PM

Our first speaker is Andy Caldwell here in Santa Maria to be followed by Jeffrey Bard in Santa Barbara.

UnidentifiedUnidentified speaker 19Proposed3:21:36 · ≈ 12:21 PM

Madam Chair, members of the board, Andy Caldwell representing CoLab. You know I think it's a responsible thing to do when there is a crisis and a catastrophe somewhere in the world to ask the question can it happen here? What can we learn and what can we do better? That's a responsible thing to do. However, I want you to take a look at the room here. It's empty.

I don't think most people are into fear mongering They understand that anything can happen anywhere. I remember one time a vegetable cooler, seven miles inland from the coast here in the Santa Maria Valley was asked by county staff to come up with this tsunami event for a vegetable cooler and the point is we live with hazards every day. The farmers in Lompoc live with the hazards of flooding and we don't do anything about it even though that issue has been there for 20 years.

One of the causes of catastrophe in Japan was a dam failed. We have a bunch of earthenware dams in California that are not reinforced, we live with that every day. We have bridges that are seismic reinforced, we live with that every day. If we wanted to start talking about risks I can tell you and I'd put my hand on a Bible If I had to park my family somewhere during a tsunami and an earthquake, I want to be inside Diablo Canyon.

I give you my word on that. I've been there enough times to know that they have redundancy and overkill in that with regard to safety. If I had one place to pick, I would be inside one of those buildings. And you know, the bottom line is there's been activists for 30 to 40 years that have wanted that place shut down and they don't want nuclear power. There are some of the same people that were proponents of AB 32 saying get us off fossil fuels.

We can't get off fossil fuels successfully without nuclear power. You can't get there. Mathematically, you can't do it. That plant supplies 10% of California's electricity You know, the bottom line here is that plant could be shut down anytime and any day if and when it's proven scientifically that a seismic risk exists. Regardless if it was re-licensed for 200 years, it can be shut down tomorrow if studies surface to prove that there's an untenable risk there.

The one thing I wish you would jump on, everybody talks about the spent fuel. What he said in passing and I've done a half dozen shows on this is the fuel's recyclable. Almost all of it is recyclable. France recycles. The reason we don't recycle is Jimmy Carter felt that maybe this could fall into the hands of terrorists and we want to keep it locked away. We want to get rid of it, get the law changed, allow them to recycle. Thank you.

UnidentifiedChairProposed · by role3:24:49 · ≈ 12:24 PM

Thank you, Mr. Caldwell. Mr. Allen who's next?

UnidentifiedUnidentified speaker 1Proposed3:24:52 · ≈ 12:24 PM

Our next speaker is Jeffrey Bard in Santa Barbara to be followed by Brian Rosen.

CommentJeffrey BardProposed3:24:57 · ≈ 12:24 PM

Madam Chair and members of the board You have a letter in your file talking about environmental racism but the racism is on the part of the no nuke NIMBYs because they say go build it in Mexico Go build it in Yemen. Go build it in small countries that have no oversight, and that would be very short-sighted. I'm asking you to think of what's good for the country because of global warming we're going to have nuclear power in the world inventory of power And these people that are anti-Diablo are short sighted NIMBYs, and they just want all the nuclear power plants down in Mexico and farther south in this hemisphere. And we'll have no regulatory oversight.

Now I was a member of the Clamshell Alliance before Diablo was built, and I was in the Oil Chemical and Atomic Workers Union. That was a union of Karen Silkwood. And I attended a Nuclear Regulatory Commission meeting in San Luis Obispo and participated in the dialogue, and they did an excellent job. Professor Abrahamson from our very own UCSB presided, and all of our questions were answered. We have nothing to fear but fear itself. I have been a long-term Democrat, and the Democratic Party is a good place for differences of opinion, but they have to be conducted in an honorable manner. At that meeting in San Luis Obispo, Gave two boxes of documents, including documents that I intended to distribute to this board. To a member of San Luis Obispo Mothers for Peace and Women's International League for Peace and Freedom, Judith Everett.

She, to this date, refuses to return those documents. And I have been subjected to interference with my activism by that organization. And therefore, I don't have the documents to provide you, and I don't have written testimony Summarizing the NRC meeting because I'm still waiting for the documentation. So in the meantime, I advise if you would like a critical perspective, I did meet at this meeting David Weissman and Rochelle Becker.

They are salient critics of Diablo Canyon Power Plant. But David himself used to work with Mothers for Peace. He also left and works independently with this organization, Alliance for Nuclear Responsibility. I'm not a member. I am not a board member. I have no financial relationship with Alliance for Nuclear Responsibility but from my observations they're highly ethical and competent to provide a progressive left of center critique and I would recommend that people interested in a critical perspective go to the website Alliance for Nuclear Responsibility and disregard the retro, jaded 60s pseudo-feminist dialogue coming from Mothers for Peace and Wealth. Thank you.

UnidentifiedChairProposed · by role3:27:58 · ≈ 12:27 PM

Thank you. Next speaker?

UnidentifiedUnidentified speaker 1Proposed3:27:59 · ≈ 12:27 PM

Our next speaker is Brian Rosen being followed by Patricia Rosen.

UnidentifiedUnidentified speaker 12Proposed3:28:04 · ≈ 12:28 PM

Brian Rosen here. I don't think we need all this hate in our dialogue None of us who are against nuclear power want it to be in little poor countries around the world, not nobody I've ever known. But I feel that nuclear power is very unsafe, unnecessary and extremely expensive. It turns out that no private insurance company will insure nuclear power. That tells you something right there.

Who's paying for it? The rate payers. It's extremely expensive and we're being forced to pay for something many of us don't want. Why are there not many people here today? A lot of people are working On the great protest that just happened, there were probably about 1,000 people up at Avila Beach. And anybody can watch the whole demonstration and the wonderful speakers by going to ustream.tv and then typing in protest against Diablo nuclear power plant. There was a wonderful energy expert for the state of California speaking about alternatives and the waste of energy about on the 28 minute mark that everybody can listen to Even if we reuse much of the fuel, which we don't, we still have to store it for millions of years. Is this something that we really want to saddle future generations with?

We use about twice as much energy as each person in Europe. Only about 10% of our energy comes from nuclear power, which is just too expensive with all the real needs out there that money could be going towards health care and so forth. We don't need to spend that kind of money, you know that radiation is going to be around forever. We need energy efficiency I see so many lights in this room you know there's it's so bright in here we're probably using about three times as many lights as we need We need a clothesline campaign to get everybody to dry their clothes in the sun. It's such a small amount of our nation's energy and so expensive, we don't really know how earthquake faults are going to act. Earthquakes are different if the fault goes right under or if the epicenter is under.

The San Francisco earthquake there were reported big openings in the ground that swallowed up cows and so forth. Nobody really knows. And it's just, why pay for something so incredibly expensive? Natural gas is pretty clean. Energy efficiency is our greatest power plant which will make the biggest, biggest, cheapest difference and there's just so much waste we need to start concentrating on getting people using their clotheslines a lot of apartments don't even allow it this should be reversed There's so much simple little things that we can do And it'll easily erase Diablo's energy usage by what we can conserve. So thank you so much.

UnidentifiedUnidentified speaker 2Proposed3:31:04 · ≈ 12:31 PM

Our next speaker

UnidentifiedUnidentified speaker 1Proposed3:31:06 · ≈ 12:31 PM

is Patricia

UnidentifiedUnidentified speaker 2Proposed3:31:08 · ≈ 12:31 PM

Rosen

UnidentifiedUnidentified speaker 1Proposed3:31:10 · ≈ 12:31 PM

to be followed by Judith Everett.

CommentPatricia RosenProposedself-stated3:31:13 · ≈ 12:31 PM

Everything Brian Rosen said, I being his mom agree with completely And I want to say an alternative will be solar energy. So, I would like to have this Diablo nuclear plant shut down and that this is all I have to say just my vote for it.

UnidentifiedChairProposed · by role3:31:36 · ≈ 12:31 PM

Thank you ma'am. The next speaker Mr. Allen?

UnidentifiedUnidentified speaker 1Proposed3:31:39 · ≈ 12:31 PM

Judith Everett to be followed by Lynn Hendred

3:31 – 3:3812 turns

CommentLynn HendredProposed3:31:50 · ≈ 12:31 PM

So I listened with great interest to all those strategies and things that we've got at Diablo to save us in the worst case scenario. And I think we just have to keep our fingers crossed that we don't get an earthquake that's more than 7.5, because I think that could demolish Santa Barbara as well as the five cities and slow And I have left a letter for the supervisors outlining three books that could well convince them, shut down Diablo. That is the only way to go to be safe.

Because why take risks when indeed, like an Australian lecturer held up a clothespin and said this is the answer to the energy problem we hang our clothes outside to dry. But in any case most of the past is gone and we can't do anything about it except we can be rational And the fact that Diablo exudes radioactive moisture every morning, one PG&E man told me it's just like an early morning mist.

It's quite safe but I know it has radiation and the book called The Enemy Within proves that if you live within 50 miles of a Nuclear plant, you're more likely to have cancer and you're less little, less likely if you live a hundred miles from it. And so on they studied 50 plants over this country to prove this. It's all county health information and the book called Normal Accidents Charles Pero actually says that all the devices to make Nuclear plants safer, ironically make them more dangerous.

And he says it's only a matter of time for another meltdown and this is even without a tsunami or an earthquake but with all the different things that can go wrong Charles Perrow says shut down nuclear plants. The technology is not Fail safe. And of course, the third book that I mentioned in my letter to the supervisors is Nuclear Power Is Not The Answer and Helen Caldicott is renowned the world around for her knowledge and her passion and her efforts Humans to be rational. Now I have a map from the U.S.. Your time is

UnidentifiedUnidentified speaker 1Proposed3:35:02 · ≈ 12:35 PM

up, if you could wrap up please.

CommentLynn HendredProposed3:35:05 · ≈ 12:35 PM

Oh, I don't

UnidentifiedChairProposed · by role3:35:06 · ≈ 12:35 PM

know that I can but I will probably... Well, you're going to have to so we're going to have the next speaker now. The next speaker is who?

UnidentifiedUnidentified speaker 1Proposed3:35:12 · ≈ 12:35 PM

The next speaker is Lynn Hendred to be followed by Nathan Alley.

UnidentifiedChairProposed · by role3:35:17 · ≈ 12:35 PM

Thank you.

CommentLynn HendredProposed3:35:17 · ≈ 12:35 PM

That was cute.

CommentNathan AlleyProposed3:35:25 · ≈ 12:35 PM

Hi again. As a mother of a 9 and 12 year old in 1981, it was very difficult to choose jail time as the consequence over our opposing the nuclear power plant 100 miles north of us which is of course Diablo. We knew that if that plant malfunctioned then and now It would cause mind-boggling deformities, sterilization and cancer and a myriad of other sufferings.

As terrifying as it was then you can imagine my feeling now after the conflagration going on in Japan which It incidentally is almost totally closed off to us due to the loss of revenue if people knew the extent of the contamination. It's quite possible actually that Santa Barbara's tap water has some amount of radiation in it from Japan because it has been found in water of several other states after the essentially meltdown there.

Just this past week, radiation was found in the Mississippi River caused by a leak from a thought to be deactivated nuclear power plant That wasn't a Japanese consequence, but the radiation linkage to Japan was also manifest in cow's milk. There was an article in the Indypen, you probably saw it. That the cow's milk just south of Diablo has been found to have radiation in it which means that the wind has caused the radiation from the air in Japan to blow over to the North American continent via the jet stream.

It's cumulative and meaning that it builds on itself including within the human body And there is no way to neutralize it. So for the sake of sanity and for the health of our species, as well as for that of plants, animals here and all over the world we implore you to write a resolution to immediately decommission the Dabble Canyon Nuclear Power Plant. Let the closure of that plant be the domino which lets nuclear energy tumble forever into the pit of hell from where it came.

And let Diablo represent the first domino of nuclear power plants to fall, and may the thunder of each fall be accompanied by our tears of remorse at the desecration which it has caused already. And then if it is within the bounds of karma, may our tears be found acceptable in helping Suffering, shimmering, shivering, glimmering precious Mother Earth. And may our gratitude for this healing if it can happen

UnidentifiedChairProposed · by role3:38:31 · ≈ 12:38 PM

have

CommentNathan AlleyProposed3:38:31 · ≈ 12:38 PM

no

UnidentifiedChairProposed · by role3:38:31 · ≈ 12:38 PM

end. Thank you so much. Thank you. Next speaker.

UnidentifiedUnidentified speaker 1Proposed3:38:35 · ≈ 12:38 PM

Nathan Alley to be followed by our final speaker Mark Shutillo.

3:38 – 3:4929 turns

UnidentifiedChairProposed · by role3:38:41 · ≈ 12:38 PM

That was pretty good.

PresenterNathan AlleyEnvironmental Defense CenterProposedself-stated3:38:44 · ≈ 12:38 PM

Good morning, Madam Chair, Supervisors. My name is Nathan Alley. I'm with the Environmental Defense Center. Those were very eloquent words. I am a little awestruck. We as an organization will save our comments on the relicensing process for the NRC. I think today we just wanted to express our appreciation to all of the county, state and federal elected officials who have ratcheted up the oversight on Diablo Canyon and asked for some of these studies And frankly, we'd also like to thank the folks at Diablo whose job it is to keep us safe. It was certainly no one's wish but those folks in Japan who did go into the nuclear power plant after the accident are heroes today. So in closing I just want to say again that we appreciate the studies that are ongoing and the oversight and the regulation and we will most likely be involved in the licensing process going forward.

Thank you very much.

UnidentifiedUnidentified speaker 1Proposed3:39:43 · ≈ 12:39 PM

Final speaker is Mark Shatillo.

CommentMark ShatilloProposedself-stated3:39:52 · ≈ 12:39 PM

Good afternoon, Madam Chair and members of the board. I'm Mark Shatillo. I am here today as an individual, as somebody who has studied nuclear radiation chemistry in the Environmental Health and Safety Office and inspected nuclear or hot labs at a major university And also who was in upstate New York when Three Mile Island went and was in Europe when Chernobyl went.

So I have a fair amount of experience firsthand in what happens in a community when we have meltdowns and other upsets at radioactive at nuclear power plants and where radiation is involved. The issue is not just risk, but relative risk and the consequences of a breach of containment at a nuclear power plant is why this is not fear-mongering and this is not something that we can just brush aside. We are a downwind community While we had a week before the emissions from the Japanese power plant reached the United States, should Diablo Canyon experience a catastrophic failure, we will have a matter of hours. And for the folks in the North County it may be less than an hour and Mr. Caldwell's response may well be appropriate because by taking his family although I can't condone it Closer to the source, it'll be over sooner as opposed to being in Nipomo where it will be a more painful and gradual demise.

But it's important for us as emergency planners to recognize that we need to be prepared for those episodes. So I'm going to identify four requests of your board in today's agendized action. First with respect to the NRC licensing process, the PG&E letter that's in the packet is artful in its wording and stating that PG& E has requested that the NRDC rather than the NRC delay final processing. Delay final processing and what I believe the board needs to request is the same thing as the San Louis Board requested which is that the PG&Es suspend all processing until additional information is made available on that relicensing issue. Secondly on evacuation planning, I think that's really the lesson from Japan is that we need to be prepared for multiple catastrophes simultaneously including the nuclear meltdown.

And Mr. Caldwell also spoke of the earthen dams if we lost the dams in Santa Maria and the San Inez rivers, the communities of Santa Maria Would be isolated and unable to move either way with prevailing westerly winds, they would be subjected to a substantial dose. I think it's important that your staff be prepared for that contingency and certainly coordinate with the people in Santa Maria and the other communities up there that would be isolated were we to lose 101 in both of those junctures. Thirdly, I'd request that you direct staff to identify a cost estimate Or what would be the value of lost property in Santa Barbara County should there be a meltdown. And third, and finally ask your county council to develop funding strategies in order to be able to ensure that you have the ability to respond to these kinds of emergencies.

So thank you Madam Chair and members of the board for addressing this important issue and we look forward to seeing you in June.

UnidentifiedChairProposed · by role3:43:06 · ≈ 12:43 PM

And is that our final speaker? Thank you Mr. Tello. I think at this time, unless anyone has more questions we could maybe thank and file for... I don't know if we need a motion to say thank you. Receive and file motion? Do we have one? Okay. Supervisor

UnidentifiedUnidentified speaker 9Proposed3:43:24 · ≈ 12:43 PM

Wolff? Yes Mr. Strickland. I just wanted to know, you brought up earlier about the 10 mile exclusion zone and I was wondering how that was arrived at and again talking about lessons learned. Do you think that should be revised?

UnidentifiedUnidentified speaker 18Proposed3:43:43 · ≈ 12:43 PM

I think what I'd like to do is potentially take an action if you're interested in coming back and giving a presentation on our emergency response plan and be able to then talk about the various zones that are established, various profiles for how wind is modeled and in turn be able to then provide you more input as to how that program is established.

UnidentifiedUnidentified speaker 9Proposed3:44:13 · ≈ 12:44 PM

Well, you know I would definitely be interested in that. I was kind of hoping to see a map of the 10 miles and where that is but can you...

UnidentifiedChairProposed · by role3:44:21 · ≈ 12:44 PM

We

UnidentifiedUnidentified speaker 9Proposed3:44:21 · ≈ 12:44 PM

have a meeting

UnidentifiedChairProposed · by role3:44:21 · ≈ 12:44 PM

coming up on the 16th maybe we could ask them to come with that at that time?

UnidentifiedUnidentified speaker 9Proposed3:44:26 · ≈ 12:44 PM

That may be or sometime in the future. I think Mr. Harris you meet with our San Luis folks don't you about this?

UnidentifiedUnidentified speaker 17Proposed3:44:34 · ≈ 12:44 PM

Members of the board yes ma'am. We have a part-time manager assigned to the nuclear power plant program which receives funding from San Luis Obispo County and part of that is the identification of the ingestion pathway and the emergency pathway zone so we would certainly be prepared to give your board more information including maybe with NRC just a briefly review what the emergency plans entail.

UnidentifiedUnidentified speaker 9Proposed3:44:58 · ≈ 12:44 PM

I think that would be very helpful but just going back to my question about the 10 mile, that has remained constant you're not expected to change that?

UnidentifiedUnidentified speaker 18Proposed3:45:08 · ≈ 12:45 PM

Again, it's not my area of expertise and so what I think will be most beneficial for the supervisors is to get a detailed presentation that talks about what is the program. And then from there, I think it's a good question for the Nuclear Regulatory Commission as lessons learned from the events in Japan are they looking at the potential for changing requirements in the emergency plans?

UnidentifiedUnidentified speaker 9Proposed3:45:35 · ≈ 12:45 PM

And when you come back, I think evacuation of the folks in that zone is important. I would be interested to know the effect of our water sources because that was indicated in the report as being an issue in Japan so how that might affect Kachuma Lake for instance? What are our backups? I just want to make sure we've got plans in place should this occur And also there was mention in the report about the agriculture community. Contamination of agriculture products. How will folks downwind or upwind be informed of this? What are the precautions that they can take?

And then, of course, the seawater around the plant. What would we be doing as far as ocean pollution would go?

GuestLavininoProposed · by introduction3:46:32 · ≈ 12:46 PM

Thank you Madam Chair. Supervisor Farr. Thank you. I wholeheartedly concur with that request I think that would be really good. And just a couple quick questions for Mr. Harris. Mr. Harris, do we participate in these regular drills that they have?

UnidentifiedUnidentified speaker 17Proposed3:46:46 · ≈ 12:46 PM

Supervisor Farr, with the exception of the force-on-force drills which are within the NRC and the plant itself. Yes ma'am we participate regularly I can tell the board that this fall we have a major FEMA drill Jay McCamas who's one of our program managers is organizing that for the county resources that will include resources from Guadalupe and Santa Maria so yes were very active in those drill participations

GuestLavininoProposed · by introduction3:47:12 · ≈ 12:47 PM

Okay, and so then we are hooked in somehow to this emergency notification system that Supervisor Wolf was talking

UnidentifiedUnidentified speaker 17Proposed3:47:19 · ≈ 12:47 PM

about? Yes ma'am. Working with San Luis Obispo, we have placed a notification hotline in County Dispatch. The protocols for that notification then go, so it's monitored 24-7. That notification then comes into County Dispatch and notifies the OES duty officer.

GuestLavininoProposed · by introduction3:47:35 · ≈ 12:47 PM

Okay, and then you'll be able to speak to Mr. Shatillo's concerns about multiple problems happening from a single event?

UnidentifiedUnidentified speaker 17Proposed3:47:43 · ≈ 12:47 PM

We'll certainly look at that and report back to the board.

GuestLavininoProposed · by introduction3:47:45 · ≈ 12:47 PM

Thank you. Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed3:47:47 · ≈ 12:47 PM

Thank you Madam Chair. First of all I want to thank you for coming in giving us as much information as possible. I want to state that the concerns that have been raised since the Japan incident have been a very bipartisan In a bipartisan fashion. I know Senator Blakeslee has expressed great concern and Congresswoman Caps as well as our U.S. Senators. When we consider this item again, I'd like to have an option for us to consider taking a synonymous action like the San Luis Obispo Board of Supervisors.

They obviously took that Decision which seems to be slightly at odds with ours for a reason and I like to compare in contrast what The difference is and for us to have an option to take a similar action Like the Board of Supervisors did in San Luis Obispo so that we could be supportive and in solidarity with some of their concerns

UnidentifiedChairProposed · by role3:48:47 · ≈ 12:48 PM

Thank you. Any other questions or comments? So we need a motion to receive and file again. Thank you It was excellent well done very very informative.

UnidentifiedUnidentified speaker 18Proposed3:48:55 · ≈ 12:48 PM

Thank you my pleasure

UnidentifiedChairProposed · by role3:48:57 · ≈ 12:48 PM

Is there a second?

UnidentifiedUnidentified speaker 9Proposed3:48:59 · ≈ 12:48 PM

Yes, receive and file and also request a return to come to the board at an appropriate time.

UnidentifiedChairProposed · by role3:49:07 · ≈ 12:49 PM

It looks like the 16th would fit. Well we're going to have this special meeting.

3:49 – 3:537 turns

UnidentifiedUnidentified speaker 9Proposed3:49:18 · ≈ 12:49 PM

That's what I would say. I would leave it up to staff to decide if they can get us the information by then, that would be fine. If not let's hold off so

UnidentifiedUnidentified speaker 17Proposed3:49:28 · ≈ 12:49 PM

we'll follow with the board.

UnidentifiedUnidentified speaker 6Proposed3:49:30 · ≈ 12:49 PM

All right.

UnidentifiedUnidentified speaker 9Proposed3:49:30 · ≈ 12:49 PM

Staff will follow up

UnidentifiedUnidentified speaker 6Proposed3:49:31 · ≈ 12:49 PM

from time and the motion includes bring back the options like the Board of Supervisors in San Luis Obispo did.

UnidentifiedChairProposed · by role3:49:38 · ≈ 12:49 PM

OK. We have a second and all in favor say aye. Aye. The board will reconvene at 1 30. Thank you. Yeah.

UnidentifiedUnidentified speaker 14Proposed3:52:08 · ≈ 12:52 PM

Yeah. Yeah. you Hi.

3:55 – 4:201 turns

UnidentifiedUnidentified speaker 2Proposed3:55:27 · ≈ 12:55 PM

you Thank you. Yeah. Thank you. You. StSq3 3.30 (-0.70)" Yeah. ♪ ¶. ¶. ♪ ¶¶ ¶¶ ¶. Music playing ¶. Thank you. ¶. You. Hi. Thank you. Yeah. Yeah. Yeah. you I saw some visitors this weekend, Marie. I was down there for the big divorce thing and I tried to go with them. Thank you. What's up?

4:21 – 4:253 turns

UnidentifiedUnidentified speaker 13Proposed4:21:13 · ≈ 1:21 PM

Yeah.

UnidentifiedUnidentified speaker 2Proposed4:22:00 · ≈ 1:22 PM

Really? Hi.

UnidentifiedChairProposed · by role4:24:30 · ≈ 1:24 PM

Welcome back to the Board of Supervisors for Santa Barbara County. The modern technology, I was just watching Steve Labarde on Fox News. He actually made Fox National News and pulled it up with his concern about the memorial flags and so on. So we can thank Caltrans for making us national news right? And with that enough said, it's really kind of a pleasant time to get together and thank people and recognize them for the things they've done. This is the time that we have our resolutions.

And at this point in time Mr. Allen which one are we going to be starting with? Supervisor, would you like to introduce

4:25 – 4:329 turns

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:25:18 · ≈ 1:25 PM

this? This is a resolution proclaiming May 2011 as Military Appreciation Month in Santa Barbara County. And what we're highlighting here is the services for employment that want to make sure their veterans receive the services and programs to which they are entitled. I'm going to be calling forward Mr. Milton Batson, who is the retired Air Force captain and he's got a few folks here with him that he'd like to introduce as well. So Mr. Allen, please read the resolution. Madam

UnidentifiedUnidentified speaker 1Proposed4:25:54 · ≈ 1:25 PM

Chair, members of the board, this resolution proclaiming May 2011 as Military Appreciation Month in Santa Barbara County. Our community has great appreciation and admiration for the many local men and women who served their country in the armed forces to protect and preserve the freedoms enjoyed by our community, and by all Americans. But whereas, in war, international conflicts, and peacekeeping missions, men and women have been wounded, taken prisoners, and died on the line of duty. But whereas, veterans possess a wide variety of valuable job qualifications and skills including experience Now therefore, be it resolved and ordered that this Board of Supervisors of the County of Santa Barbara proclaims May 2011 as Military Appreciation Month in Santa Barbara County And urges all local employers, organized labor, veterans organizations and other governmental leaders to support this worthy campaign to increase employment opportunities for the men and women who have faithfully served in our nation in the military.

Passed and adopted today by the Board of Supervisors. Okay.

not transcribed≈21s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 20Proposed4:27:41 · ≈ 1:27 PM

Frank and I are state veteran representatives. We've recently undergone a title change, so we're back to the old title. Frank is what they call a leaver. He's a local Veteran Employment Specialist, a representative. And I'm the DVOP Disabled Veteran Outreach Program Specialist. And we have today in the audience a number of veterans from different branches of service and we'd kind of like them to come up if they would just for a moment. If you could all come up.

Different ages and different branches And maybe they could, Frank would you like to make some comment or so before we start? I'll take some brief comments.

UnidentifiedUnidentified speaker 21Proposed4:28:35 · ≈ 1:28 PM

I don't know how to follow it up when Supervisor Gray mentioned Caltrans. Then you got another state agency standing up here, but I think we're the better part of Caltrans or the state. I just want to thank the board for recognizing again this month veterans in the work we do and I want to give another positive feedback that veterans are starting to get back to work. We're starting to see more veterans employed And I know Milt is having his annual stand down in San Luis Obispo the Thursday before Memorial Day, but I'm holding the first ever Veterans Resource Fair June 14th here in Santa Maria. That happens to be Flag Day and because I was in the Army, I chose that to be the Army birthday. So hopefully we're going to have some agencies that provide services to veterans to come out there so the veteran community will know exactly what's out there for them.

So again thank you.

UnidentifiedUnidentified speaker 20Proposed4:29:26 · ≈ 1:29 PM

Just another note about the fair. It's a veteran's job and resource, and stand down. It combines all three of those types of services. And we're anticipating having some apprenticeship agencies there from the unions because of the Carissa Plains program for the photocells that they'll be putting up. And they're going to be needing a lot of people So if we can pass the word around that there's going to be quite a bit of, quite a need for employment up there.

Also that includes training under an apprenticeship program you're trained to be a professional in whatever area that you're training in so they'll be a plethora of service providers that provide local services for practically whatever your need is And it's a great thing to do for the community. And considering the state of our economy, we've opened it up to non-veterans also. So it's a veteran job and resource fair and open to anyone that is looking for employment.

The VA will be there to provide entitlement services every year. Several veterans that qualify from their service for medical assistance and never was aware of it, and they get taken into the system and helped with medical treatment and things of that nature. So it's just another way of thanking our veteran community and our entire communities because we have folks from Santa Maria as well as San Luis

not transcribed≈9s of audible speech the AI couldn’t make out▸ listen
UnidentifiedChairProposed · by role4:31:17 · ≈ 1:31 PM

Obispo

UnidentifiedUnidentified speaker 20Proposed4:31:18 · ≈ 1:31 PM

coming

UnidentifiedChairProposed · by role4:31:21 · ≈ 1:31 PM

in.

UnidentifiedUnidentified speaker 22Proposed4:31:22 · ≈ 1:31 PM

Mike Stadnik, Captain USAF retired. I have more than 43 years of Air Force service. I'm also the commander for the Santa Maria Valley Veterans Honor Guard and there's great opportunities we talk about May is I'm also the emcee for the Memorial Day Service at the Santa Maria Cemetery and I'm here to Also to advertise it, we have our guest speakers. Guest of honors one will be Christian Johnson, widow of Senior Airman Johnson will be one of my speakers and Colonel Baltz the wing commander for Vandenberg Air Force Base.

So I'm going to go ahead and provide one of these to each one of these supervisors. And I have to leave because I have a softball game over at Kiyama. I hope you win your game.

4:32 – 4:3613 turns

UnidentifiedChairProposed · by role4:32:20 · ≈ 1:32 PM

Next?

CommentGeorge TukayProposedself-stated4:32:25 · ≈ 1:32 PM

My name is George Tukay, I'm a retired U.S. Navy from 1965 to 1985. The Honorable Mayor had a joke when I first met him long time ago. He said, George, when we were inactive you were my boss But today I'm the mayor. I'm your boss. Thank you.

UnidentifiedChairProposed · by role4:32:52 · ≈ 1:32 PM

The mayor is a funny guy.

CommentJoseph SkodaProposedself-stated4:32:55 · ≈ 1:32 PM

He's really funny. My name is Joseph Skoda, captain retired United States Air Force, newly elected senior vice commander of the DAV here in Santa Maria and I want to thank you for the awards and giving us this month.

UnidentifiedChairProposed · by role4:33:10 · ≈ 1:33 PM

Thank you very much.

UnidentifiedUnidentified speaker 23Proposed4:33:16 · ≈ 1:33 PM

Ken Johnson, past commander of Post 534 in Orchard. And I'd just like to thank you for our recognition. Thank you.

UnidentifiedChairProposed · by role4:33:25 · ≈ 1:33 PM

Great. Thank you so much. Supervisor Lovanino your mic was off.

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:33:33 · ≈ 1:33 PM

Thanks for meeting me Madam Chair. It's been tried many times before but... I'm really good at it! I think she found a new button. So that's not good. I do have another resolution. This is a resolution proclaiming May 2011 also as Mental Health Month, and we have with us today Ann Dietrich, our Director of Alcohol, Drug and Mental Health Services. Also have with us the Chairperson from the Santa Barbara County Mental Health Commission which is my representative on the Board, she's the Chairperson Margie Lopez And James Rode, the vice chairperson and he represents the third district. So if you could come forward and Mr. Allen if you could read this

UnidentifiedChairProposed · by role4:34:16 · ≈ 1:34 PM

resolution.

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:34:20 · ≈ 1:34 PM

Whoever else would like to come forward?

UnidentifiedUnidentified speaker 1Proposed4:34:26 · ≈ 1:34 PM

Madam Chair and members of the Board, this is item A3. It's a resolution proclaiming May 2011 as Mental Health Month. Whereas the U.S. Surgeon General has found that one in every five Americans experiences a mental disorder in any given year and half of all Americans have such disorders at some time in their lives. And whereas mental illnesses are far more common than cancer, diabetes, heart disease or arthritis and are real treatable diseases that can affect anyone regardless of age, ethnicity or gender. And whereas the Santa Barbara County Alcohol, Drug and Mental Health Services Department recognizes the importance of promoting mental wellness for all members of the community.

And whereas the Santa Barbara County Mental Health Commission supports proactive community collaborations to maximize the mental health of all people Now, therefore be it ordered and resolved that this Board of Supervisors of the County of Santa Barbara proclaims the month of May 2011 as Mental Health Month and calls upon all Santa Barbara County citizens to fight the stigma associated with mental illness and reaffirm a commitment to supporting the mental health of all people in Santa Barbara County past and adopted today.

UnidentifiedUnidentified speaker 24Proposed4:35:36 · ≈ 1:35 PM

Good afternoon Supervisors, Supervisor Gray and Supervisors. Thank you for supporting this resolution. I'm pleased that also with us today is another one of our commissioners Anne Eldridge from the 4th District. And Tina Wooten who is our Consumer Empowerment Manager. And I just want to personally say how much I appreciate being able to work with the commissioners, your appointees. And I think their presence here today shows how much citizens, consumers and family members make a difference in our mental health system. So thank you very much and we'll look forward to seeing you again. Thank you Dr. Dietrich. Thank you folks.

UnidentifiedChairProposed · by role4:36:23 · ≈ 1:36 PM

That concludes the resolutions and it's time now to go to D4

4:36 – 4:4211 turns

UnidentifiedUnidentified speaker 1Proposed4:36:30 · ≈ 1:36 PM

Madam Chair, members of the board. Item 4 is from planning and development. It's a hearing to consider recommendations regarding an ordinance amending Chapter 25, the Petroleum Code.

UnidentifiedUnidentified speaker 25Proposed4:36:42 · ≈ 1:36 PM

Ms. Black? Madam Chair, members of the board. This is a continuation of our discussion Potential changes to the High Risk Operation Ordinance of the Petroleum Code. And this is a continuance from your February 1st hearing where members of the industry and the environmental community raised concerns regarding the proposed changes. Since February 1st, staff has had an opportunity to meet with the stakeholders and work toward a consensus on the issues.

The purpose of this hearing today is for staff to report on comments from the stakeholders and provide recommendations to your board, and then for your board to provide direction on specific ordinance language which staff would bring back to your board on July 12th. So we've not prepared specific ordinance language. We thought we'd better get the concepts right first since we've gone through this several times, and then we'll come back with the specific ordinances.

In the current ordinance, high-risk operations are defined as facilities which have been in violation for more than 30 consecutive days or 45 days during the preceding 12 months and have three separate unauthorized releases of a quantity of not less than 25 barrels. So that's the current standard and these are the standards we've been working on. With respect to the first part of the definition regarding the length of a violation at a facility, staff recommends that a high-risk operation be defined as one which has been in violation for more than 30 days and has resulted in an issuance of a notice of determination of fine.

This standard is consistent with the primary enforcement tool we use at these petroleum facilities, the administrative fine ordinance. Both the petroleum industry and the environmental community concur with this change. Staff recommends incorporating the environmental community change in wording in the list of violations to change the word or, change to or rather than and to clarify that the violation of one section of the Petroleum Code could trigger a high risk designation. In other words you don't have to trigger each and every section of the code With respect to the second half of the current definition, staff recommends that the current standard of three releases of 25 barrels or more be revised to two releases of 15 barrels or more other than within secondary containment.

The proposed changes supported by the industry and the environmental community. The industry noted that this clarification regarding containment is extremely important and a useful one. The third definition issue staff suggested at your last meeting was intended to address facilities with habitual but small spills or releases. The comments received from the industry and environmental community on this particular issue were mixed. Based upon staff's review of historical spill data, and the fact that egregious cases of willful negligence can already be referred to the district attorney's office. Staff does not recommend adopting a third threshold to address habitual spills. Staff proposes to continue to monitor compliance of onshore facilities and spill data, and would propose a new threshold to the Board of Supervisors if circumstances should warrant one in the future.

The final substantive issue proposed to be changed are the remediation requirements. As currently written existing remediation plans only require the operator to remediate the causative problem of a spill or release and do not require the review of the facility operation as a whole. The proposed changes presented to your board in January and February would clarify responsibilities and expand remediation plan requirements, on the screen are some of those things that the remediation plan would cover.

Again on this particular issue both the petroleum industry and the environmental community are supportive of the changes So I think we've resolved most of the issues in a consensus manner. The only issue where there was some differences of opinion was with respect to that third threshold and again, staff would recommend that we not adopt an additional high risk threshold at this time and instead monitor and put one in place if and when we think one is needed in the future.

So we're asking that you provide us direction on these amendments and direct us to return on July 12th with ordinance amendment language for your adoption.

UnidentifiedChairProposed · by role4:41:38 · ≈ 1:41 PM

Thank you, Ms. Black. Any questions before we go? How many public comments do we have?

UnidentifiedUnidentified speaker 1Proposed4:41:42 · ≈ 1:41 PM

We have two requests to speak. Do

UnidentifiedChairProposed · by role4:41:44 · ≈ 1:41 PM

you want to go straight to the public comments? I just have one quick question on this. Mr. Labnino?

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:41:48 · ≈ 1:41 PM

Thank you Madam Chair. Definition B for high-risk operation, industry was asking for a clarification on the definition for hazardous materials. Have we ironed that out to their satisfaction?

UnidentifiedUnidentified speaker 25Proposed4:42:03 · ≈ 1:42 PM

Yes, Madam Chair and Supervisor Lavagnino, we have. We actually reviewed that language with both the industry and the environmental community. I think we've reached concurrence on that.

CommentCesar ChavezProposed4:42:14 · ≈ 1:42 PM

Thank you.

UnidentifiedUnidentified speaker 25Proposed4:42:16 · ≈ 1:42 PM

There are, I should point out there are a few other minor changes that we presented before that we would recommend we continue to bring forward in the ordinance. Okay

UnidentifiedChairProposed · by role4:42:26 · ≈ 1:42 PM

thank you and our speakers. Can

UnidentifiedUnidentified speaker 9Proposed4:42:28 · ≈ 1:42 PM

I just ask one question? Supervisor Wolf. Thank you on the cumulative issue where there is no recommendation to move forward and you'd mentioned that the industry said that there has not been a record of those types of violation Was it specifically the one barrel outside of containment? Or is that what they were referring to, that they haven't seen that?

4:42 – 4:5412 turns

UnidentifiedUnidentified speaker 25Proposed4:42:55 · ≈ 1:42 PM

Madam Chair and Supervisor Wolff. We actually reviewed our own spill data and did not find that even a threshold that we had proposed would have triggered another high-risk offender Identification. So we felt like it was a threshold that really wasn't necessary at this

UnidentifiedUnidentified speaker 9Proposed4:43:13 · ≈ 1:43 PM

time. Because I was thinking about that and first of all, I remember when we had this discussion and I understood the concerns that we needed another threshold that was more cumulative but one barrel outside of the containment? I can also understand that it would be very unlikely to ever to get to that point. So was there ever any consideration of say, you know five or ten barrels outside of containment or even within containment?

Because we're still looking at the essence of a high-risk operator

UnidentifiedUnidentified speaker 25Proposed4:43:50 · ≈ 1:43 PM

Madam Chair and Supervisor Wolf, we looked at lots of different ways to try and address this issue. And we couldn't find a way that we thought made sense and really addressed the issue of the board based upon the spill data we had. So we feel like addressing both the condition of the facility through the first threshold as well as a relatively modest spill amount of 15 barrels outside of containment was was sufficient and really didn't think that third standard was necessary at this time. Thank you, Ms. Black. But we'll watch it.

UnidentifiedChairProposed · by role4:44:25 · ≈ 1:44 PM

Any other questions? Mr. Allen who wants to speak?

UnidentifiedUnidentified speaker 1Proposed4:44:29 · ≈ 1:44 PM

Our first speaker will be Nathan Alley in Santa Barbara followed by Mr. Caldwell here in Santa Maria.

PresenterNathan AlleyEnvironmental Defense CenterProposedself-stated4:44:37 · ≈ 1:44 PM

Hello Madam Chair and Supervisors, good afternoon. My name is Nathan Alley again I am with the Environmental Defense Center. I have two specific comments but the first thing I wanted to say was that I really really really appreciate how hard staff has worked on this and the bridges that they've built between the industry and ourselves The environmental community.

I just, I really appreciate all the various iterations that have gone to your board for consideration and I think that we're all getting to a positive resolution of this issue. The two issues that I do want to highlight one is actually just to build on what Supervisor Wolf was talking about is my recollection that third threshold was actually put into place to replace a threshold that had been lost That was the 45 day cumulative threshold. And sorry to be a little confusing, but the 45 day cumulative threshold is my understanding that was eliminated because of the need to harmonize the ordinance with the administrative fines ordinance. And so I get that, but once we lost that cumulative threshold there needed to be something to replace it.

That was the first attempt at the five spills of a barrel or more. I can understand why industry may shy away from that strict of a threshold, but I would reiterate that we need something to replace what we're losing in terms of cumulative spills and When the language does go forward to the board in the next hearing, I would like to see an attempt at a third threshold. And when we provide written comments, I can try to maybe offer something.

The other issue I just want to flag relates back to section 2543. And again, I understand the revisions that have been made and I think that they're well intentioned and they're going to work very well. However as was noted on this slide we do want to ensure that the Petroleum Administrator retains the discretion to adequately address a wide range of scenarios At onshore facilities and is not constrained in his or her actions by this new language. And I think it's been explained to me that discretion does remain, and so that's why we're happy with the proposed language. So again, we'll look forward to continuing to work with you all, and thanks again for your attention on this very important issue.

UnidentifiedUnidentified speaker 1Proposed4:47:10 · ≈ 1:47 PM

Thank you. Our final speaker is Mr. Caldwell.

UnidentifiedUnidentified speaker 19Proposed4:47:18 · ≈ 1:47 PM

Madam Chair, members of the board. I'm Andy Caldwell and I am not representing industry at this meeting. I think that staff should be commended for working out details. I just want to talk as executive director of CoLab in a private citizen. I was driving down the freeway the other day and I noticed road construction equipment parked along the road on the freeway and they were repaving at night Okay, I'm driving on a road that's been repaved with asphalt.

And off to the side of the road is the piece of equipment that was being used for the repaving and it was on plastic. The reason it was on plastic is we put it on the road, we call it road base, we call it asphalt, we call it whatever repairs but off the road its hazardous waste So you know when you leave this building, you're going to walk across a parking lot of hazardous waste. You're going to drive home on a road of hazardous waste. You're gonna probably park in front of your house on hazardous waste and we call that roads.

But if it goes off of this designated area all of a sudden it's hazardous And Supervisor Gray, your family had a long history in oil. In most cases I used to do safety at Union Sugar. Oil wasn't even listed as hazardous. It's organic. It comes out of the earth. You know there's places in America and the rest of world where it pools naturally. And the point is, we've just come so far from an issue of common sense that you know we jump through hoops and we create expense not just for the oil industry for ourselves because we're the customers.

Your road crew uses this material to patch holes in roads, pave parking lots at beaches and other facilities. And where would we be without it? We'd be driving on dirt roads creating particulate emissions and a whole lot of other problems. This is the point where sometimes I think we need to take a step back and say are we hyperventilating To some, in some way shape or form about something that we've been living with for over a hundred years and is a beneficial project. A beneficial product excuse me for our quality of life and our way of life.

And what can we do? This is a valuable asset that we have here. A valuable sector of our economy. What can we do to enhance it? Thank you.

UnidentifiedChairProposed · by role4:50:19 · ≈ 1:50 PM

And that's our final speaker. And let's see, I saw Salud Carvajal's light. Thank

UnidentifiedUnidentified speaker 6Proposed4:50:23 · ≈ 1:50 PM

you. Thank you Madam Chair. You know, I clearly remember that it was... I was one of the individuals who raised the issue of cumulative and looking at another threshold to see if it was warranted And then it came back with this one barrel threshold that didn't seem to be in the ballpark of what I was interested in pursuing. What I wanted to pursue, and I think Supervisor Wolf also touched on it when we at one of our previous hearings is that Despite the high-risk definitions we have, despite the triggers we have what we were trying to identify and address was the multi code 20s that keep happening.

And that we seem to have gotten our hands around a lot of these issues but perception is 90% of everything and if we are getting code 20s and in the media you're hearing all these code 20s the perception is that the spills continue And I wasn't necessarily suggesting what staff came up with. I think staff was trying to come up with a standard and I think Supervisor Wolf identified a standard that deals with one barrel used By different standards and trying to identify how maybe staff might have come up with that standard. It wasn't necessarily what I was advocating for, and I would just encourage you to continue working with the environmental community in the industry To see if there's any loophole that exists right now within our standards and ordinances and triggers and definitions That might address a continued chronic reoccurrence of spills That gives the appearance at the very least, if not outright serious toxic impacts that a lot of some of these operators continue to spill and spill and spill.

That's the perception and we were trying to get our hands around you know again we're in the paper so maybe we need to right size again what is that threshold of spill? And I don't know the answer, but I know that what came up was sort of to develop a threshold. That's only going to create consternation not really going to achieve what we want and that could be counterproductive. We don't want to do.

But if we can identify something that addresses what I think we were trying to articulate and that is again the continued spills it gives the public impression that nothing has changed I think that's what we were looking to get and I just hope you guys continue to see if there is any, if it's worthwhile to identify how we might be able to get our hands around that or not.

UnidentifiedChairProposed · by role4:53:18 · ≈ 1:53 PM

Thank you supervisor. Supervisor Wolf followed by Supervisor Lavinino

UnidentifiedUnidentified speaker 9Proposed4:53:22 · ≈ 1:53 PM

Thank you, Chair. And thank you Ms. Black for providing us with this information. I just want to say that we've come a long way in the three or four years that this first came to our attention and honestly I think we're all, you know those of us in the community who understand some of the negative effects and impacts of what otherwise might just be an inert substance that doesn't have any negative effects.

These spills that we had experienced in our community did have a negative effect. And they went outside of the secondary containment. And they did impact our environment, and in some cases they impacted workers who worked for the company. So I think what we're doing is prudent. I don't think we're overstepping what we need to do in regulating. This industry and I'm very proud of this board that we've made these moves. And I think, and I agree with Supervisor Carbajal about coming up with something that does address the cumulative impacts if we can't do it now I know that you're going to keep your eye on it and maybe we can get some assistance from our other outside folks, but we do need to move forward on this. Thank you.

4:54 – 4:578 turns

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:54:50 · ≈ 1:54 PM

Staff's done the job of, we have a high risk oil ordinance and the room isn't packed. So you've done your job. I mean, you've pretty much kept both sides happy. Obviously our environmental friends would like to have something else which is cumulative so it leaves them wanting something. If it was up to me, we probably wouldn't be doing this at all but I can live with what we've got.

I think industry...I think it was good for us to sit down with industry and accept their ideas as well, their input I just want to caution when we talk about going into something that's cumulative, is it looks to me like we have an ordinance that works. And I just want to bring in another portion of this is that when we look at our oil companies first off what we have to understand is in my district its created 200 high paying jobs over the last year when most industries are laying people off.

It's the second highest paying job sector that there is. The first was management, which seems a little nebulous. So for people in the fifth district and a lot in the fourth district it's a high-paying job that they could get. And for the county we also have to remember Our number one and number two property taxpayers in this county are oil companies. So I want to make sure that we're working with them, I think they understand that they're working in an environmentally sensitive county so they do are required to do more than they would if they were working outside this county but I think it's important to strike a balance. I think we found that on this ordinance. I'd like to see this ordinance move forward in the fashion that it is right now, thank you.

UnidentifiedChairProposed · by role4:56:36 · ≈ 1:56 PM

Thank you. Other comments? Do we need a motion to receive and file? So moved. Is there a second? All in favor?

UnidentifiedUnidentified speaker 25Proposed4:56:46 · ≈ 1:56 PM

Aye.

UnidentifiedChairProposed · by role4:56:46 · ≈ 1:56 PM

Opposed? Thank you.

UnidentifiedUnidentified speaker 25Proposed4:56:47 · ≈ 1:56 PM

Madam Chair,

UnidentifiedChairProposed · by role4:56:48 · ≈ 1:56 PM

yes

UnidentifiedUnidentified speaker 25Proposed4:56:48 · ≈ 1:56 PM

ma'am. I think we're looking for a motion to direct staff to make the amendments to the ordinance and bring those ordinances back to you on July 12th.

UnidentifiedChairProposed · by role4:56:57 · ≈ 1:56 PM

Okay. Is that included in the motion? So moved. All in favor? Aye. Thank you. We're ready for item number five.

4:57 – 5:0515 turns

UnidentifiedUnidentified speaker 1Proposed4:57:09 · ≈ 1:57 PM

Madam Chair, members of the board. Item five is from planning and development. It's a hearing to consider recommendations regarding the Evans appeal of the Planning Commission's approval of 98DP023 located east of Hummel Drive and south of Foster Road in the existing development of North Point Village in the 4th

UnidentifiedUnidentified speaker 2Proposed4:57:25 · ≈ 1:57 PM

district.

UnidentifiedChairProposed · by role4:57:32 · ≈ 1:57 PM

Do we need a moment? Or are you ready to go? One minute. Thank you.

UnidentifiedUnidentified speaker 2Proposed4:57:46 · ≈ 1:57 PM

Thank you, sir.

UnidentifiedChairProposed · by role4:58:05 · ≈ 1:58 PM

And just while they're setting up in case anyone is interested, the staff's presentation will be seven minutes and the appellant then will have 15 minutes. We then will go to any kind of public comment there may be and come back with a 10-and-5 minute rebuttal and we'll have this is really 8.375 minutes for board supervisor questions Yeah, let's do it. Supervisor Wolf?

UnidentifiedUnidentified speaker 9Proposed4:58:36 · ≈ 1:58 PM

I have not had any conversations with any of the parties.

UnidentifiedChairProposed · by role4:58:39 · ≈ 1:58 PM

Ms. Farr?

GuestLavininoProposed · by introduction4:58:41 · ≈ 1:58 PM

I haven't had any conversations with any of the parties but I did speak to my planning commissioner about it, about their hearing last fall. I have neither. I

UnidentifiedUnidentified speaker 6Proposed4:58:50 · ≈ 1:58 PM

have

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.654:58:52 · ≈ 1:58 PM

neither. No contact.

UnidentifiedChairProposed · by role4:58:54 · ≈ 1:58 PM

All right. Mr. Zorbich are you ready to go now?

UnidentifiedUnidentified speaker 26Proposed4:58:59 · ≈ 1:58 PM

Yes, I am

UnidentifiedChairProposed · by role4:59:00 · ≈ 1:59 PM

Madam

UnidentifiedUnidentified speaker 26Proposed4:59:00 · ≈ 1:59 PM

Chair. Thank you all. Before I begin my presentation, I just wanted to... I handed out a memorandum to the clerk of the board. It just highlights we had some updated departmental condition letters from APCD and the fire department that we'd received prior to last year's Planning Commission hearing. And those updated departmental letters are just reflected and attached to that memorandum. And they just essentially include some updated language but they do not substantially change any requirements from the previous condition letters.

With that, I'll go into my presentation. This slide here depicts the North Point project area. The area in green is the existing North Point development which has an HOA. The area in red is the North Point project that is before you today This slide here shows a closer view of the project site in a very light yellow, apologize for the lines. That shows the configuration of the 32 lots which were recorded in 1982 for this map that was approved in 79.

Just to the north or above it and kind of northwest diagonally, if I have a pointer? No, I don't, sorry. Those are the existing North Point Thank you. Located right here, and in this area here is a portion of the existing North Point residential development located across this road here on the North Point Circle is the green open space area. Also there's some amenities depicted in this slide. The tennis courts, basketball court, volleyball court and swimming pool that currently are available to the North Point Association.

Originally, staff in 2006 took this project to the Planning Commission and recommended that the project annexed to the existing HOA or form its own HOA and then pay its pro rata share for maintaining the roads and the basins. At that initial hearing, the North Point HOA protested the condition language essentially stating that because of the project's close proximity to the existing North Point HOA, many of the people living in the new occupants would have easy access to many of the existing amenities in the North Point HOA.

Ultimately to move the project forward, the applicant provided condition language to the county and the planning commission which was approved. That conditional language required him either to annex into the existing HOA or to execute a mutual agreement for pro-ratic cost of the road and basin and also the common open space areas and amenities. At issue is really the appeal of Condition 13 and that is that shortly after the project was approved, the applicant requested that the condition be revised to allow him to form just his own separate HOA. He did not want to participate with the existing North Point HOA His reasonings for that were that the existing North Point HOA had not done a very Had not kept up their existing units, and so there was poor maintenance.

And there was quite a bit of expenditure according to him that he cited that depleted their reserve funds to maintain and upkeep the existing units. He also asked that he not be required for cost sharing of any of the open space and the open space amenities. Essentially he wanted to go back to the original condition language. He stated that rather, his belief is that the new occupants of his existing residences would not use the existing North Point HOA pool tennis courts basketball court green areas and that he would ensure that by at the time of signing for sale of a new owner. That they would sign an agreement noting that they couldn't use those and that they would be limited to the existing or the amenities that he was providing which some grass area picnic tables and barbecue pits Shortly after the appeal was set, the project went to your Board of Supervisors in 2007.

Your board sent it back down to the Planning Commission for additional feedback. There were several hearings. Ultimately, the project was dropped from their agendas to give them an opportunity to work things out After three and a half years, nothing was worked out. So the Planning Commission considered this item in September 2010. During the Planning Commission's meeting they made a recommendation to your board for you to deny the appeal. Their reasoning for that decision essentially was two things. One was that this last phase of the North Point project is not a standalone development project. They feel it's closely intertwined with existing North Point development In addition, they felt that the cost sharing that is talked about relative or that the condition speaks to relative to who's going to pay for what and in the open space areas and amenities should be resolved up front.

At that meeting and in the board letter, staff has suggested that because of the impasse now it's almost four-and-a-half years. The condition language does not allow him to move forward as the condition is certainly worded. And so as a result we've suggested that maybe or we're recommending that the project move forward under the original condition language We also note that the county typically avoids involvement in these private HOA matters and that we haven't been able to help get to any resolution between the two parties. So with that, our recommendation would be That you uphold the appeal and grant de novo approval of the case subject to the conditions in attachment 3 including the change condition 13.

And then, the other two items too which are listed in the first page of the board letter that's make the required findings for the project including the CEQA findings and adopt the CEQUA documents. The addendum environmental impact report supplemental document all included in attachment 2 and adopt a mitigation monitoring program. That concludes my presentation.

not transcribed≈6s of audible speech the AI couldn’t make out▸ listen
UnidentifiedChairProposed · by role5:05:28 · ≈ 2:05 PM

Thank you. At this point in time we'll go to the appellant, Mr. Leo Evans and Fred Gleck. And you folks have 15 minutes.

5:05 – 5:121 turns

CommentFred GleckProposedself-stated5:05:40 · ≈ 2:05 PM

My name is Fred Gleck. I'm an attorney from San Luis Obispo California. I am going to try and use up about half of that. We'll see how I do. In 1981, the original CC&Rs for this project were recorded. Thirty years later I'm standing here talking to you about the last phase. I'm sure that was not contemplated by the developers of the property nor anybody else but circumstances dictated what happened out at the village at North Point A number of developers tried their hand at developing certain phases there.

A number of them went bankrupt, and now we find ourselves in a vastly different economy than we've ever known before. However, in 1991 those CC&Rs had a very important element in there and that was they had the provisions in those CC&R's allowed for automatic annexation. And if they still have that provision I wouldn't be standing here before you now. What happened in 1990 the board amended the CC&RS to require their approval for any new phase Not only did they require their approval, they required any new phase to sign a pre-annexation agreement.

What for? Well obviously because there's things they wanted in there. It could have been anything. It could have been money. It could have been improvements. We don't know what their thinking was back in 1990 but they changed the CC&Rs if they hadn't done that Then what simply would have happened is when Mr. Evans was applying for his phase four, After receiving his approvals, he simply records a declaration of annexation. A supplemental declaration of annexation and he's a member of their HOA. That's how it works. Any disputes then thereafter would be taken to the Department of Real Estate with regard to assessments, cost improvements, deferred maintenance all of that would have been handled If that amendment hadn't occurred in 1990, well they chose to amend it.

When they did that there was only two things that could occur. It was either a future developer in a future phase had to come to terms with the HOA under their terms or they could have elected to start their own association because that's what happens. Either bond us Or you have your own association. There are many, many projects that have different associations.

What we find now is that the basis for the staff's recommendation in my view is not only one of common sense but it makes Condition 13 legally valid. Because as it's written, I don't believe it is. The Constitution allows... They give you almost unlimited power to exact conditions for developments. We know that. You condition developments in so many different ways to mitigate CEQA issues, to mitigate health and safety issues.

The few limitations that you have One of them is you can't put a condition that the developer or landowner is not capable of performing. In other words, and the second part of that is if you bring in a third party to the transaction and it's up to them to determine whether or not that condition is going to be met or not. Now that's a standard set forth in case law What you have here is exactly that.

If you deny this appeal, the minute you do we walk out the door theoretically this HOA could say well we don't want that project. No, we're not going to agree with anything. He can't meet then the condition 13 and he can't get his building permit. You say well that's not likely nobody would do that Who knows? In a year time, they may have a new board. That board may not want a phase four.

They know what this condition is. They have to approve an agreement with Mr. Evans for maintaining not only the roads and retention basins but they wanted to maintain There are other common area amenities, which is tennis courts and pool. Lots of other stuff which he doesn't want to do. And that's how this has been portrayed is that Mr. Evans doesn't want to join the association because he didn't wanna have to deal with all those other amenities. Well, Mr. Evans is trying to do a project that In this economic times, it's going to be very difficult at best. He can do it with his own association and by the way there is a simpler means of resolving the dispute between the village at North Point HOA and the new HOA which is if they have a dispute about who owes what for what maintenance that dispute can be submitted Any court under the Civil Code 845, it's a very simple process and the court determines how it's going to be done.

I want to address one more thing. I've got a few seconds. There was a letter submitted to you by Mr. Gunther, very good attorney but he is indicating there's some doubt as to the access and he's claiming that the doubt is derived from a case that speaks to the intentions of the parties when they create roads by maps. I read that case It's a very novel theory, but it's novel and that's it. And I doubt very seriously whether that association would put any money into trying to perfect that theory in a court of law because it is not supported by any case law whatsoever.

There's no doubt that they have access and that access has been perfected per the map I'm going to... There's more I could say, but I'm going to let Leo come up here and say a few words.

5:13 – 5:227 turns

UnidentifiedUnidentified speaker 27Proposed5:13:03 · ≈ 2:13 PM

I'm the developer of this project. I've been trying for over 10 years to get it through. I am hung up On three issues. Impact, the road and annexation. As far as annexation is concerned I don't want it. And I'm not compelled to annex. It's not in the homeowner CC&Rs and it's not in my deed or any Document describing the property. The association seems to think that I have access to the property, but... ...I cannot develop the property and the parties that I sell to if I was to get a sale can't use it.

That's the way I understood I'm going to read. Their letter. Of why. They come up with a case Michael. And say that's the law. It has nothing to do with the use or zoning. Our similarity to the two situations. So if you believe Annex into their group. They are saying you have to annex or if you don't annex, you don't use the road. That is not the law and They say that there's an impact, that this project is going to end up causing an impact on their open space.

Well, that's not true either. The project was designed for 200 and some 19 units. 80 of them are already Moved out of the picture, they have their own association. They're in the rental business and that lessens any strain on the units that's there or in other words North Point which is 107 units has reduced any impact on it by forming independent standalone developments by over half.

Now I plan on putting in basketball courts, volleyball court which will deter any interest in my future owners of property To go across the street and use theirs. And I think that'll do it as far as barbecue pits, park benches, park setting. I already have that. It's already there. My predecessor Bob Wilkes put it in trying to reach the deadline which reminds me reached the deadline to comply with the five-year statute.

It wasn't counted and North Point homeowners, with his consent and our consent have used that for I don't know how many years so I have the barbecues. I can put the tennis court in not the tennis the basketball court and volleyball in And it's ready to go. That's if I can get a loan. It's a development that's going to cost over five or six million dollars, and it's a little hard to find that around nowadays.

We should seriously consider it if you want to see it built of approving the project. Thank you.

UnidentifiedChairProposed · by role5:18:19 · ≈ 2:18 PM

Thank you At this time, we'll go to public comment Three requests. Okay, Mr. Allen who are they? Our

UnidentifiedUnidentified speaker 1Proposed5:18:37 · ≈ 2:18 PM

first speaker would be Steve Walker to be followed by Catherine

PresenterSteve Walker I'mVillage of North Point Homeowners Association Just to be clearProposedself-stated5:18:40 · ≈ 2:18 PM

Cromer. Madam Chair, Supervisors thanks for the opportunity to speak I had some slides presentation there I wanted to show you my name is Steve Walker I'm the president of the Village of North Point Homeowners Association Just to be clear, I'm here today representing our 107 members and we're asking you to uphold Approval Condition 13 as it stands. Yes. Which requires that Mr. Evans come to an agreement with us not only on use of the roads in the retention basin but on the other impacts the members are going to have As you saw with Mr. Zorovitch's slides and as you see here, the new properties are kind of an island surrounded on three sides by the existing development. Clearly the original intent for the development was one unified community.

So that's over here. Next slide please. So you can see more clearly here are the open spaces that are under discussion. Obviously we need to come to an agreement on the use of the roads here, Parkview North and North Point Circle for access to the project. It is our contention that there going to be inevitably the new owners are going to be using some of the facilities The tennis courts here and the pool here are fenced and locked.

However, there's no way to prevent the units, the owners of the new units from using basketball courts here, the volleyball courts here, the picnic areas. And that's the primary area of contention here I think. We're asking some reasonable amount from the members of the new association towards maintenance of those units. In addition to that... Next slide please.

Here's a view from the existing green area on this side towards Leo's properties up here. You only have, it's right across the street. I mean it's unimaginable that someone would move into these units here and tell their kids no you can't go play on the grass over here that doesn't belong to us. You can't go use those basketball courts or that playground equipment, it doesn't belong to us. I mean unless a block wall is erected here, I don't see how that's possible.

It's news to me if Leo intends to put in any amenities that was not in his previous proposals or plans. This is the first time I heard it today. Next slide, please. This is a little closer view of... this would be one of the new streets with units on either side. As you can see it's about 20 yards from our existing green area over to there. Next slide, please.

This is looking the other direction from the new Phase 4 development towards our area. As you can see it'a very inviting view It's hard to imagine, and I think it would be a disservice to the new members of the new HOA to say no you don't have access to all this across the street. All you can do is drive in and drive out. Stay away from

UnidentifiedChairProposed · by role5:22:04 · ≈ 2:22 PM

here. So your time is completed?

PresenterSteve Walker I'mVillage of North Point Homeowners Association Just to be clearProposedself-stated5:22:07 · ≈ 2:22 PM

Okay.

UnidentifiedChairProposed · by role5:22:09 · ≈ 2:22 PM

Thank you. Any others?

5:22 – 5:3118 turns

UnidentifiedUnidentified speaker 1Proposed5:22:13 · ≈ 2:22 PM

Our next speaker is Catherine Cromer to be followed by our final speaker Chris Gunther.

CommentCatherineProposed5:22:20 · ≈ 2:22 PM

Thank you for letting me come and speak, Madam Chairman and supervised board members. Can you go back to maybe the second slide?

UnidentifiedChairProposed · by role5:22:30 · ≈ 2:22 PM

And could you step just a bit closer to the mic? Thank you.

CommentNathan AlleyProposed5:22:33 · ≈ 2:22 PM

Can you hear me now? I can hear you

UnidentifiedChairProposed · by role5:22:34 · ≈ 2:22 PM

now.

CommentNathan AlleyProposed5:22:36 · ≈ 2:22 PM

Okay.

CommentCatherineProposed5:22:42 · ≈ 2:22 PM

I live right here. And all I can say to you is there's going to be an impact We've got Rigetti up over here. We've got a grade school over here, we've got another grade school here, we'v egot a junior high all in this area. We've got all these schools. What is inviting about our location is that it's so close to schools. So we have, I don't know what it was, 34 or 33 units? I'm going to say we're going to have more than one car per unit and all of our new neighbors.

Where do you think they're going to go when they go to take their kids to school or go to work. They're going to go right in front of my house, they're going to go up here to Lakeview. This road right here is not planned to be opened at all. Now sure they can come out here and go down here, go to this light, go this light and then turn around yeah that might happen. And what about all the kids that are riding their bikes to school? You don't think that the natural order, the natural wave of people is going to be using access. We have our own kids that come over here and jump the fence to Lakeview. Hopefully they'll jump a fence going this way if they're walking but for those in cars, for those on bikes it's gonna be right in front of my property I just can't tell you as a resident that these new homeowners are going to be told, excuse us kids you can't come over here.

You can't hang out over here it's just going to happen I believe we're gonna have cars that are gonna park here We will do the best that we can to be good neighbors, but there will be extra wear and tear. And what we're asking isn't to have equal opportunity with homeowners' dues. It's very, very reasonable just to help us with the upkeep. Where are we going to put this basketball court anyway?

Where are we going to put this over here? We'd like these to be good neighbors. We'd like to be good neighbors to them, you know. Leo has not compromised at all. We have received letters from him stating okay, we'll do this and then the next letter we get from him is no, we're not going to do that anymore. Then the next letter we get from him he's suggesting something else We're encouraged. We visit with him, I know my time is up. We're encouraged. But then the next letter we get he pulls it back so it isn't that we haven't been trying.

Thank you for your patience. And the next speaker?

UnidentifiedUnidentified speaker 1Proposed5:25:32 · ≈ 2:25 PM

Our final speaker is Chris Gunther.

PresenterChris GuntherNorth Point Village Association I want to make a cProposedself-stated5:25:37 · ≈ 2:25 PM

Thank you. My name is Chris Gunther and I'm an attorney. I practice primarily in the area of common interest development law and I represent the North Point Village Association I want to make a comment on the so-called legal issues regarding access. I really do not believe that that is the issue, and that's an issue for the courts to determine. I really think this whole thing comes down to common sense.

Common sense. Look at the current development plan. The current development plan was based upon project evaluations many years ago. It was based upon two assumptions, one that this project would be annexed into the North Point Village. Two it would be subject to the declaration of restrictions for the North Point Village. Now what you have before you is the same project evaluations but Mr Evans wants a standalone association It seems absolutely clear to me that without new project evaluations, because the standalone association will have further impact on North Point. Without further project evaluations you can't really consider this.

So what the Association has done has been what I call in good faith they've tried to work with Mr. Evans and because of these new impacts because it is now wanting to be a standalone association, those impacts have to be dealt with. And they have to be dealt with in one of two ways which is what Condition 13 does. Condition 13 provides that Mr. Evans can annex into the Association. That solves all those impacts and that's what the current development plan and the project evaluations were based upon.

What we did was we negotiated an alternative for Mr. Evans And that was done when he was represented by Mr. Glick and I welcome Mr. Glick back into this picture because he provides an element of reason here. Condition 13 provides the option to enter into a common area sharing agreement, something short of annexation. And quite frankly that agreement can be reached. This is not a situation where The association is a third party. The association is clearly affected by this project and Mr Evans wants to use our roads or I should say the Association roads in the Association water basin, okay?

And he's agreed to pay some costs but there are some other issues that are involved and the condition 13 allows for that and provides that Provides remedies for the association. If it's annexation, all these remedies are available. If it's not annexation then it provides North Point to assess those property owners. That's what the agreement would provide to assess those property owners for maintenance repair and replacement. Thank you.

May I finish?

UnidentifiedChairProposed · by role5:28:57 · ≈ 2:28 PM

You've got ten more seconds.

PresenterChris GuntherNorth Point Village Association I want to make a cProposedself-stated5:28:58 · ≈ 2:28 PM

Okay, well you cut me off at 10. Do you want me to cut you off at 18? I'm sorry. It

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:29:04 · ≈ 2:29 PM

was plus ten over not ten short.

PresenterChris GuntherNorth Point Village Association I want to make a cProposedself-stated5:29:07 · ≈ 2:29 PM

Oh, I'm sorry. Thank you. Well, the three issues are assessment collections and control over those particular amenities. And that is the ability to control the abuses of use by the members of the new project. Thank you.

UnidentifiedChairProposed · by role5:29:23 · ≈ 2:29 PM

Thank you. It's time now for a rebuttal from Mr. Evans and I don't know how the board feels but this is my district and all I can either And Mr. Evans, you can have the choice too. I can tell you basically my leanings towards this before Mr. Evans speaks and that would give him a chance to talk against it or he can speak and how do you want to do it? All right. I was around as the Administrative Assistant to the Supervisor when this project was approved. It was approved as a project as the whole.

I drive by this project at least six times a week for this area and I strongly believe that the new part should be part of the old part I mean, there's no ifs ands or buts about this with me. It's part. It should be part. It should remain part. They should be part of the Homeowners Association. There is absolutely no way in the world that this should be split off. And I find myself probably in opposition to what staff had recommended and maybe I'm not understanding that. Maybe staff wants to take a go at me but that's pretty much how I feel at this time.

Any questions of me?

GuestLavininoProposed · by introduction5:30:32 · ≈ 2:30 PM

Madam Chair, I don't have any questions but I was very glad to hear you say that because the Planning Commission was unanimous in its evaluation of it and their decision. And I totally agree with you. Mr. Evans do you want to

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:30:51 · ≈ 2:30 PM

add anything? Madam Chair, I totally agree with you and the other thing I wanted to point out is that I looked at the cost of this and we've spent almost $33,000 in 200 hours of staff time on this one. It looks like a slam dunk to me but I guess my question is of staff. The recommendation seems completely out of left field to me so I would hope that we could... Is there something we're not looking at? Am

UnidentifiedChairProposed · by role5:31:14 · ≈ 2:31 PM

I missing something?

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:31:15 · ≈ 2:31 PM

Yeah what's...I didn't understand that at all.

5:31 – 5:3824 turns

UnidentifiedUnidentified speaker 26Proposed5:31:21 · ≈ 2:31 PM

Madam Chair and Supervisor Levinino, staff feels that the way the condition language is originally recommended allowed him to move his project forward by either annexing or forming his own HOA. There is obviously a discussion about the close proximity of new residents with existing residences But staff feels that the language that's existing in condition 13 does not allow him to move forward with his project, does not allow him to.

move forward and it puts, I think the county has been in an awkward situation because we typically don't become involved in these private HOA matters. We just, I think staff's position really is that maybe there's another venue for them to resolve this. And so we thought best that maybe we can move this project forward and they would then take it to that other arena if you will.

not transcribed≈6s of audible speech the AI couldn’t make out▸ listen
UnidentifiedChairProposed · by role5:32:24 · ≈ 2:32 PM

That's kind of a...I'm not quite sure what you just said Oh,

GuestLavininoProposed · by introduction5:32:29 · ≈ 2:32 PM

well Madam Chair if I could just respond. I think first of all you know to think that people that would live in these units would not walk across the street and use all those amenities is just beyond belief to me so and that was I think one of the points that there really wasn't evidence that they would necessarily use them and I think that it's pretty obvious to me that they would and I think one of the speakers said that you're going to tell your kids no you can't go across the street And play on that grass or use those courts. I think the reason that we don't typically get involved in HOAs, that's true but I think de facto we were involved in it from the very beginning and in the design of this project so like it or not you know we are involved with the issue.

So you know I mean I just totally agree with our

CommentNathan AlleyProposed5:33:21 · ≈ 2:33 PM

chair.

UnidentifiedChairProposed · by role5:33:23 · ≈ 2:33 PM

And I still owe 10 minutes to Mr. Gleck and Mr. Evans, so if you want to we'll let them go ahead and take that and then we're pretty definite here. You're going to have to make the argument of your life.

UnidentifiedUnidentified speaker 9Proposed5:33:37 · ≈ 2:33 PM

Before then, let me just say I'm not really sure where I am on this. OK. I still have some questions. Do you want to

UnidentifiedChairProposed · by role5:33:46 · ≈ 2:33 PM

lay them out so he'll know

UnidentifiedUnidentified speaker 9Proposed5:33:47 · ≈ 2:33 PM

what they are? Yeah but I'm not sure. I need to ask you, I want to ask County Council the question about the 1990 change about the annexation. It was brought up that originally they had to join the HOA but in 1990 there was a change

UnidentifiedUnidentified speaker 28Proposed5:34:12 · ≈ 2:34 PM

Supervisor Wolf, Madam Chair. We haven't looked at that document. That's typical of HOAs that there is often a time limit on annexing without approval and then often it expires. We did speak with the Department of Real Estate and I know they had reviewed those and felt that it was something that this probably wouldn't come up today because of the way they review new CC&Rs, but it was something that you know the existing documents are what they are.

UnidentifiedChairProposed · by role5:34:46 · ≈ 2:34 PM

So wasn't the Board of Supervisors that made a change in 1991? It was this HOA?

UnidentifiedUnidentified speaker 28Proposed5:34:53 · ≈ 2:34 PM

I don't know actually. I was assuming that from

UnidentifiedChairProposed · by role5:34:57 · ≈ 2:34 PM

I thought John said the board, meaning the Board of Supervisors. And I thought he meant the Board

UnidentifiedUnidentified speaker 9Proposed5:35:02 · ≈ 2:35 PM

of the HOA. Board of HOA? Okay, okay. So that was my one question. I mean, I'm assuming if it's coming from the HOA then that's probably what happened and you seem to be saying that's likely. So, so that's one question. The other question is Is the design of the new development in keeping with the design of the current development or is it substantially different?

CommentFred GleckProposedself-stated5:35:34 · ≈ 2:35 PM

Yes.

UnidentifiedUnidentified speaker 9Proposed5:35:35 · ≈ 2:35 PM

It is. OK, another question is do any other communities? So it sounds like from what I heard from the testimony that the tennis court and the pool are gated so no one can get in there but not the other two amenities. Do you have or is there any knowledge that And I don't know what it looks like, Supervisor Gray around there from if there's other households that are in the neighborhood or any other kids that might come onto that grass area that aren't part of the HOA. I mean we don't know that.

UnidentifiedChairProposed · by role5:36:12 · ≈ 2:36 PM

Very easily could be but that but the whole North Point is all they all look just alike you know it's really very they all look alike to me.

UnidentifiedUnidentified speaker 9Proposed5:36:20 · ≈ 2:36 PM

Think all those things. But it's possible that someone from the community can come out there and use the basketball courts, and use barbecue pits and not be a member of the HOA? That would be my guess.

UnidentifiedUnidentified speaker 2Proposed5:36:33 · ≈ 2:36 PM

OK. All

UnidentifiedUnidentified speaker 9Proposed5:36:34 · ≈ 2:36 PM

right. I'm done asking my questions for now.

CommentFred GleckProposedself-stated5:36:36 · ≈ 2:36 PM

You're on. And I do get where you guys are going. I know you do. Yeah, but I want to just point out a couple of things. One It's not a gated community. It's an open community, okay? Meaning that anybody can come use those facilities unless they're kept out by the fence around the pool or around the tennis court which any HOA will have security for those improvements but as far as basketball courts and open areas, anybody can use it. They could walk off the street. How are they keeping them up? And they probably do I represent a lot of, or I've written a lot of CC&Rs for associations that have mutual maintenance agreements with regard to common facilities that aren't the same association. That are in the same exact area where somebody could walk across the street and use the pool of one association or use the tennis courts of another.

It happens all the time. It's part of modern life. But this project is 30 years later. And like you say, and you hit on two very salient points. One, it's a completely different project. And two, we're not in a gated community. Anybody can use those. Phases four and five

UnidentifiedUnidentified speaker 9Proposed5:37:57 · ≈ 2:37 PM

could. I just have one question. Is there any good time? Yeah, this is on our time. So the issue is the use of that community area, the tennis, I mean whatever, the volleyball and the basketball. And I think you said that you were going to put it in your development but no one knows about it. Can you show us? If that could be a condition of approval that you're going to be putting those items into your homeowners association and you're going to have some green area That might alleviate some of the fears from the other folks.

CommentFred GleckProposedself-stated5:38:39 · ≈ 2:38 PM

I'll

UnidentifiedUnidentified speaker 9Proposed5:38:39 · ≈ 2:38 PM

let Leo

CommentFred GleckProposedself-stated5:38:41 · ≈ 2:38 PM

respond to

5:38 – 5:4515 turns

UnidentifiedUnidentified speaker 27Proposed5:38:46 · ≈ 2:38 PM

that. The tennis, the basketball and volleyball courts would go between the most southern Location of units and then the one above north.

UnidentifiedUnidentified speaker 9Proposed5:39:08 · ≈ 2:39 PM

OK, well I guess one of the one of and I just propose this as an option is to put in a condition if it doesn't sound like Supervisor Grace. If you were to maybe change your mind to put in a condition of approval that he put in those amenities on his project And we already know he's agreed to take care of or to put in his 23% of whatever it is, of the roads. To take care of the roads and the basin.

So I'm just trying to figure out a way to get this done and to not also impose for this new developer to have to join an HOA. Especially now that it's been changed, there is something that just doesn't sound right to me. That a developer is being required to annex into an existing HOA.

UnidentifiedChairProposed · by role5:40:10 · ≈ 2:40 PM

Supervisor Carbajal?

UnidentifiedUnidentified speaker 6Proposed5:40:12 · ≈ 2:40 PM

Having had some interesting HOA issues in my district which I see Mary smiling. I'm trying to understand The legal basis from council and P&D that connects this development project with the project that is saying, you got to come on to us. You've got to help us pay. I want to understand the legal connection.

CommentFred GleckProposedself-stated5:40:42 · ≈ 2:40 PM

I'm not sure I understand the question,

UnidentifiedUnidentified speaker 6Proposed5:40:44 · ≈ 2:40 PM

the legal connection. I think it's condition 13 that everybody keeps addressing? Yes. I want to better understand the legal connection that binds this area to the existing North Point Homeowners Association because for me that's the rub Because if there's no legal connection, then shoulda, woulda, coulda, like it isn't good enough. It goes back to what somebody is entitled to. We can still condition it the way we want. I think we have latitude to do that but for me it's really important to understand the legal connection that binds these two that comes to the foundation of our decision making

UnidentifiedChairProposed · by role5:41:25 · ≈ 2:41 PM

today. And as soon as...I'll give you...I'm going to go for just a moment. The reason is If that piece of property was a standalone piece of property right now and not connected to North Point in any way, shape or form we would not even be looking at this kind of development. It would be single disconnected as separate part, a separate whole. They should have to go back and get a whole new development plan is what it amounts to. This is the development plan that was done in 81. So you know they want to totally change it? Get a whole new development plan Madam

UnidentifiedUnidentified speaker 6Proposed5:41:57 · ≈ 2:41 PM

Chair, I think you're starting to answer it. But I'm trying to know is it because it was part of an overall development plan that articulated the relationship between these two? If somebody could just explain that to me, it would be really helpful.

UnidentifiedUnidentified speaker 28Proposed5:42:11 · ≈ 2:42 PM

Yes, Madam Chair, Supervisor Carbajal. It was part of a map and that's why the roads come in because the map referenced the roads and that's what makes them the HLA. If a developer wanted something that was going to be all developed and share amenities, that would be... And that goes back to

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UnidentifiedUnidentified speaker 6Proposed5:42:50 · ≈ 2:42 PM

John's recommendation. Why they didn't feel they needed to get involved with it?

UnidentifiedUnidentified speaker 28Proposed5:42:54 · ≈ 2:42 PM

Right. Usually that's why the county doesn't get involved because matters of the CC&Rs are private contractual relationships between the parties. What is problematic here is Trying to force the new development plan to join or to reach an agreement. And then there are some legal vulnerabilities

UnidentifiedUnidentified speaker 6Proposed5:43:18 · ≈ 2:43 PM

associated with that. That's at the discretion of this board that we have? Well, it is very clear that we understand that because that's kind of what we're doing.

UnidentifiedUnidentified speaker 4Proposed5:43:29 · ≈ 2:43 PM

I think what Ms McMaster was saying was that there is some And I think that's what staff has based their recommendation on Condition 13, because there are some legal vulnerabilities with Condition 13 as approved by the Planning Commission. Both in terms of some authority that restricts the county's ability to require a private...to allow a private party to dictate another private party's use which means and I think staff has explained it by saying that the Condition 13 as it exists would empower another private group to control whether or not this new group can actually develop if they refuse to reach an agreement, either arbitrarily or because they just could not reach a meeting of the minds.

And I think the courts have frowned on that as a Impermissible delegation.

UnidentifiedChairProposed · by role5:44:24 · ≈ 2:44 PM

Counsel, address my concern of having it both ways. The only reason that it's being allowed this particular configuration is because of the 1981 plan. So the developer or the person that wants to work this project says I choose to use certain parts in the 1981 plan but not other parts and that is what...I mean I can't even imagine this happening I'm flabbergasted.

UnidentifiedUnidentified speaker 28Proposed5:44:48 · ≈ 2:44 PM

He is consistent with the map, and that's what was proved originally. There are subsequent development plans that this particular property isn't part of. And those are what I think the prior HOA or the existing HOA is part of.

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5:45 – 5:5514 turns

GuestLavininoProposed · by introduction5:45:08 · ≈ 2:45 PM

Madam Chair, I think that this is really important because how many phase developments does this county have throughout the county that we've approved and that we continue to approve that for whatever reason don't get built out you know right away. And I, you know again, I totally agree with the Chair that this was envisioned a certain way. It was conditioned a certain way.

It is taking advantage of the improvements that were made, the roads and the detention base and I think also the recreational amenities but But the applicant now, the new applicant seems to want to pick and choose between yes we want to take this part of it and yes we're willing to pay for the roads and the detention basin but not the rest. And so you know if this is something going forward that we need to take a closer look at then I think every time that a phase development comes forward to us we're gonna have to really look at this issue because none of them That

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UnidentifiedUnidentified speaker 28Proposed5:46:25 · ≈ 2:46 PM

The thing is there weren't. So as I understand it, he is consistent with all his subdivision conditions but we don't have subdivision conditions that dealt with these issues

UnidentifiedUnidentified speaker 25Proposed5:46:35 · ≈ 2:46 PM

which

UnidentifiedUnidentified speaker 28Proposed5:46:35 · ≈ 2:46 PM

is

UnidentifiedUnidentified speaker 25Proposed5:46:35 · ≈ 2:46 PM

unlike Rice Ranch. Madam Chair and Supervisor Farr, I think that's correct. The way that we condition the way that we approve projects and we condition phase projects now We don't simply approve the map and put the development plan off into the future. We review the entire project We know what we're approving and all of the components of the project are tied together. In this particular project, we have a pretty unusual set of facts which certainly could replicate in the future given the financial times but this particular remainder piece of the property, this last phase of the property was I guess in foreclosure Mr. Evans purchased the property from a bank and so he's really separate from the development as it proceeded through the process and really has no connection to that original developer, original development plan.

The reason that you see a pretty unusual recommendation before you today one where we're not supporting them The Planning Commission's unanimous position on this project is precisely what County Council said. We were very concerned about a condition that placed the fate of the project in the hands of a third party, and we did not think that was appropriate in this case.

UnidentifiedChairProposed · by role5:47:56 · ≈ 2:47 PM

You know, and this has come to... This is the second time that I recall this coming to us with the very same outcome and with us asking these folks to go work it out. They haven't. And it absolutely doesn't fit, I think we ought to let them have their eight minutes to finish talking about whatever they want to talk about and then take a vote on it. I feel so strongly that it's just the wrong place for this and it doesn't fit and it's not what it was supposed to be and I'm willing to take my chances. You've got eight minutes to change my mind and 35 seconds.

CommentFred GleckProposedself-stated5:48:41 · ≈ 2:48 PM

Well, I think I've already hit on. I've opened up with my legal points of view and it's already been covered by the county council so I think we're all on the same page on that. I don't think it is the same project. I think it's a different project. I know you say it's the same project because it happens to be on a phase four It comes in a weird time because phase five and six are already gone.

They're not part of the project. They're independent of all this. So I don't know how that happened, but it did. It did because over a period of 30 years lots of things changed. Whatever the planning was into the future for everybody when this thing was originally approved back in 1981 it didn't happen. It only happened to a part of it. That part got built and the rest of it didn't. It blew up So we have three phases that kind of went off into the netherworld.

Now we have phase four coming back to you as an entirely different project. Now, yes they are across the street from common facilities that have already been built. They don't want anything to do with them. They want to be their own project and that's how they They've been presented to staff, that's how staff has looked at it. And yet you want to throw them back in with North Point because back in 1981 they were part of North Point or on a map they were showing as that.

My problem is this, is that I agree Chris Gunther and my working with the HOA they're good people. I like them. I thought we could get something done okay? But the point is when you deny this appeal today that's it. It's all over. They don't have to work with us at all and that's the problem with that condition. Because a court doesn't look beyond the condition of what somebody might do or could have done, or hypothetically will do. They look at the worst case scenario, what they can do and that is they can hold up the building permit by saying we don't even want you.

And that's what this condition does. What if they change their boards tomorrow? Then I had a bunch of people who said we don' want that. And look at that, the Board of Supervisors gave us the opportunity. Because there's a condition that makes us approve this beyond the Board of Supervisors. You can't do that. That is not legally justifiable. It won't hold up.

That's where we're coming from and I don't need maybe five minutes.

UnidentifiedChairProposed · by role5:51:29 · ≈ 2:51 PM

And you know, I really hear you. I do because I don' think it's justifiable that one group of citizens What could in fact hold it up? But the problem is, it's based on you say don't throw us in as part of North Point. The only reason you've got multiple family small lots like that is because you are part of North Point. If in fact if you were applying today's standards, it would be single-family residence at best.

So that's why I mean if we can figure out a way council so they don't have to be hooked up with with the other association and they build it so that it look, you know, it's the same kind of outcome. And it looks like North Point. It fits the project. I'm OK. I don't care if they belong to their association or not. I just want it to be consistent with what the neighborhood is.

That's Supervisor Farr. I mean, I thought

GuestLavininoProposed · by introduction5:52:31 · ≈ 2:52 PM

Madam Chair, I guess I'm kind of more into the cost sharing too. You know whether they're actually part Association, whether they have another association and they come to some agreement. But I thought that the Department of Real Estate or something, you know if they get involved with some of this HOA fee business couldn't they come in as some kind of a mediator and say here's the value, here's what the existing HOA is paying, here's something that's comparable? Kind of like the percentage you came up with on the other.

So that it's not...so that there is a mediated way of arriving at a settlement so that The applicant doesn't feel that, you know, they're totally being stonewalled whether they are or not by the existing HOA.

UnidentifiedUnidentified speaker 28Proposed5:53:13 · ≈ 2:53 PM

Supervisor Farr, I know when I spoke with them, I didn't ask them that specific question but they felt that right now it wasn't something they would be involved in. That they felt the access would be sufficient and they were comfortable looking at it as a separate association. Madam

GuestLavininoProposed · by introduction5:53:34 · ≈ 2:53 PM

Chair? Again, it's not this being a separate association. I agree with Supervisor Gray. It's just kind of more the money part of it.

UnidentifiedUnidentified speaker 6Proposed5:53:41 · ≈ 2:53 PM

Madam Chair, I guess I'm kind of looking at council and our P&D to help me with this concept and that is couldn't we ask, couldn't we approve what the appellant wants with mitigations of contributing towards the amenities They could fund their own association, but they have a responsibility to pay for some of these amenities that are inevitably going to be used by some other folks instead of trying to marry two people that don't want to marry each other. That's really the issue here. I

UnidentifiedChairProposed · by role5:54:18 · ≈ 2:54 PM

have a homeowners HOA

UnidentifiedUnidentified speaker 6Proposed5:54:19 · ≈ 2:54 PM

issue in my district That is a disaster because we created a circumstance that had no business being the way it is. And I got to tell you, I don't want us to create a problem on top of a problem and trying to solve a problem. So the question is let them have their own different associations but legally can we create for this new development if they want to add more amenities great But there's amenities already in place and have them contribute as mitigation for this infrastructure that's going in. And used by their residents of this existing infrastructure, can they contribute a certain pro rata share per units that is based on some formula?

As an ongoing expense of the HOA. That might be a better solution than trying to force a marriage of two people, two associations that don't want to be married. How can we get there?

5:55 – 5:5816 turns

UnidentifiedUnidentified speaker 25Proposed5:55:30 · ≈ 2:55 PM

So

UnidentifiedUnidentified speaker 6Proposed5:55:30 · ≈ 2:55 PM

Madam Chair... What we can do is a different issue. Let's

UnidentifiedUnidentified speaker 25Proposed5:55:33 · ≈ 2:55 PM

not get into it. Madam Chair and Supervisor Carball, I think what you're suggesting is that the language in condition 13 cover more than the roads and the retention basin? So which amenities are you proposing that they cover?

UnidentifiedChairProposed · by role5:55:49 · ≈ 2:55 PM

Come back with something that works. With costs, yeah. But to cover all of the recreational facilities? Well, figure out the percentage. Percentage it. You know, I mean... It's already two-thirds built. What is a third? What is it worth? Supervisor Labanino... I'm just trying to figure out...

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:56:04 · ≈ 2:56 PM

It doesn't sound like the applicant wants that.

CommentFred GleckProposedself-stated5:56:07 · ≈ 2:56 PM

The

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:56:07 · ≈ 2:56 PM

problem there is... See this is the problem. He doesn't want to do that.

CommentFred GleckProposedself-stated5:56:12 · ≈ 2:56 PM

There's a real problem with that because that takes Well, that kind of takes DRE out of the mix. You're right. DRE would still be in the mix if we were still under the old CC&Rs. They got taken out of it when we had that amendment and that's the problem because we would simply go to DRE and have them solve this problem as we are all part of the same association.

And we can't do that now.

UnidentifiedChairProposed · by role5:56:40 · ≈ 2:56 PM

I'm going to make a motion that we uphold the Planning Commission's decision All in favor

UnidentifiedUnidentified speaker 9Proposed5:56:47 · ≈ 2:56 PM

say aye. I just before, just for discussion, I appreciate where you're coming from but I cannot support it because of what County Council has recommended to us and I think that given the concerns that the homeowners have that another condition of having these folks have it in writing that they are going to have their own amenities I think would have taken care of the issue.

So anyway... And

UnidentifiedChairProposed · by role5:57:15 · ≈ 2:57 PM

Supervisor Wolf, you are so right but it just doesn't seem like this group of people and I think it's good that you do vote that but it just doesn't seem like this particular group is capable of that. Right. Because they were offered them all kinds of stuff and they're standing out there

UnidentifiedUnidentified speaker 9Proposed5:57:30 · ≈ 2:57 PM

saying no. But we didn't ask them if they were capable or willing to do a condition of approval to include their recreation sites As another condition of approval, we didn't ask them that. We just asked if they would be willing to pay for the existing.

UnidentifiedChairProposed · by role5:57:46 · ≈ 2:57 PM

Well how about we do this? We let this motion just kind of sit out there for like 30 days and if Ms. Black can go out there and get these folks to figure out something

ElectedSteve LavagninoSupervisorProposedvoiceprint 0.655:57:54 · ≈ 2:57 PM

Madam Chair, I'm not okay with that. For me it's, we've spent $33,000, 200 hours if we can't get it now. It started in 1981. He's had the property since 2003. If we can't do it now, it's not going to be 30 days. I am going to vote for your motion.

UnidentifiedUnidentified speaker 25Proposed5:58:10 · ≈ 2:58 PM

All in favor say aye. Before you vote, can I just request that you at least clarify the motion to say based upon the Planning Commission's findings? Yes. Thank you.

UnidentifiedChairProposed · by role5:58:20 · ≈ 2:58 PM

All in favor say aye. Aye. Opposed?

5:58 – 5:594 turns

UnidentifiedUnidentified speaker 9Proposed5:58:23 · ≈ 2:58 PM

No.

UnidentifiedChairProposed · by role5:58:23 · ≈ 2:58 PM

Okay, thank you. The Board of Supervisors is time to adjourn and I'd like to adjourn in honor of Josephine Van Schack that we talked about earlier this morning. Thank you one and all. Boy, all of a sudden we get going fast. It's been tough every time. Every time.

UnidentifiedUnidentified speaker 3Proposed5:58:49 · ≈ 2:58 PM

Thank you.

UnidentifiedUnidentified speaker 13Proposed5:59:35 · ≈ 2:59 PM

Barbara C.