Meeting Summary
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At a glance
Weights & Measures Fee Schedule
- Supervisor Lavinino requested a time-certain hearing for April 3 to consider the revised fee schedule.
- A merchant spoke against the implementation, arguing there was no public demand for increased oversight.
- The item was placed into agenda review for the requested time-certain hearing.
Cesar Chavez Day Resolution
- Supervisor Carbajal presented the resolution proclaiming March 31 as Cesar Chavez Day.
- Speakers expressed both skepticism regarding the honoree's local connection and strong support for his contributions to farm workers.
- The resolution was adopted.
Professional Social Worker Month Resolution
- Supervisor Wolfe presented the resolution honoring social workers in child protective and workforce programs.
- Department representatives and social workers spoke to the importance of these services.
- The resolution was adopted.
San Ynez Valley Honorees
- Supervisor Gray presented resolutions honoring Frank Kelsey, Terri Ames, and Richard Christensen.
- Speakers addressed the honorees' backgrounds, with some raising questions about specific associations.
- All three resolutions were adopted.
World Tuberculosis Day Resolution
- Supervisor Lavinino presented the resolution for March 24, 2012.
- Public Health staff discussed the prevalence of tuberculosis and the importance of proper treatment.
- A speaker expressed concern that closing the x-ray department would harm vulnerable populations.
- The resolution was adopted.
ADMHS Financial Update
- Staff reported a projected $3.3 million net negative financial impact for FY 2011-12 due to accrual issues and operational costs.
- The department outlined historical billing challenges and state audit impacts that contributed to financial exposure.
- Staff proposed using fund balances and reallocating program funds to offset the gap, while advising against drastic service cuts.
- The Board directed the department to return in May with further financial projections and efficiency options.
- The Board also moved to pursue an RFP to examine departmental options, including consolidation and strategic restructuring.
Indian Gaming Special Distribution Fund Grants
- Staff presented a state allocation of $736,752 for law enforcement and emergency services.
- Due to limited funds, staff recommended a partial reimbursement to the Sheriff’s Department and the remainder to the Fire Department.
- The Board approved the grant submission as recommended by staff.
Santa Barbara Ranch Inland Development Agreement
- Staff requested consent to transfer the Inland Development Agreement to CIP2-BRSBR Limited Liability Corporation.
- Counsel for both parties confirmed the transferee’s financial capacity and reputation to assume obligations.
- Public comment raised concerns regarding ongoing litigation and the transferee's sustained resources.
- The Board continued the item to May 1, 2012, to allow for the resolution of pending court proceedings.
Sole Source Purchase of Inmate Medication
- The Sheriff requested a sole source purchase for an inmate with a life-threatening condition.
- The cost was negotiated down to $2,700 per dose, with potential annual costs reaching $500,000.
- The Board approved the sole source request for the Sheriff’s Office to purchase the medication.
Pescadero Lofts Apartment Project
- Staff presented a 33-unit affordable housing development in Isla Vista targeting homeless and formerly homeless individuals.
- The applicant withdrew a request to waive development impact fees to expedite the project.
- The Board approved staff recommendations 1, 2, 3, and 4, including specific condition revisions.
Closed Session
- The Board directed county counsel and outside counsel to initiate a cross-complaint in the case of Terrace v. County of Santa Barbara.
Full summary
Opening and Roll Call
- The Clerk called the regular meeting of the Santa Barbara County Board of Supervisors to order. Roll call confirmed the presence of all five supervisors. The Pledge of Allegiance was recited.
Approval of Minutes
- The Clerk moved to approve the minutes of the March 13 meeting. The motion was seconded and passed by voice vote.
Public Comment
- Public comment was opened. Speakers addressed the potential closure of the Lompoc County Clerk’s office, citing impacts on disabled seniors, low-income residents, and military personnel. Supervisor Gray stated that County Clerk Joe Holland indicated a solution to keep the office open for vital documents would be worked out. Other speakers raised personal legal issues involving the District Attorney’s office and the Victim Witness Program; discussed budget cuts affecting Casa del Mural; described experiences with conservatorships and financial abuse; and represented "Occupy SV foreclosures" regarding the housing crisis and alleged non-compliance with state laws by foreclosure companies.
Employee Recognition
- The Clerk recognized Harriet Heath, a biologist for the Agricultural Commissioner’s Office, as the volunteer of the week for her work with the 4-H goat project.
Administrative Agenda
- Supervisor Lavinino requested that Item A14 be pulled for a time-certain hearing. The Clerk noted requests to speak on Items A1, A2, A3, A6, and A14.
Item A14: Weights & Measures Fee Schedule
- The item involved a request from the Agricultural Commissioner to set a hearing for April 3 to consider a revised fee schedule for the County Weights & Measures Chapter 34C. Supervisor Lavinino requested a time-certain hearing at 10:00 AM at the next meeting. John Lopez, a merchant in Santa Maria, spoke against the implementation, arguing there was no public clamor regarding overcharging and that the county should not add more staff to an overburdened payroll system. The item was placed into agenda review for the requested time-certain hearing.
Item A1: Resolution Proclaiming March 31 as Cesar Chavez Day
- Supervisor Carbajal presented the resolution. Dr. Robert Johns spoke on the item, questioning its purpose and expressing skepticism regarding the honoree’s connection to the community. Rogelio Trujillo, Renato Valdez, George Solinas, and Bob Manning spoke in support of the resolution, detailing Cesar Chavez’s contributions to farm workers and social justice. The resolution was adopted.
Item A2: Resolution Proclaiming March 2012 as Professional Social Worker Month
- Supervisor Wolfe presented the resolution. Several social workers and career employment specialists were invited to the podium. Supervisor Wolfe spoke about the importance of social workers in child protective services, adult protection, and workforce programs. A department representative acknowledged the staff’s dedication. The resolution was adopted.
Item A3: Resolutions Honoring San Ynez Valley Individuals
- Supervisor Gray presented three resolutions: 1. Honoring Frank Kelsey as 2011 San Ynez Valley Man of the Year. Dr. Robert Johns spoke, expressing uncertainty about the honoree’s background and raising concerns about potential associations with local organizations. Frank Kelsey accepted the award. The resolution was adopted. 2. Honoring Terri Ames as 2011 San Ynez Valley Woman of the Year. Supervisor Gray noted Ames’s work with People Helping People and her mentorship of Latino families. Terri Ames accepted the award. The resolution was adopted. 3. Honoring Richard Christensen for the Valley Foundation Lifetime Achievement Award. Supervisor Gray highlighted Christensen’s involvement in the Everhold Museum, Solvang Friendship House, and various school boards. Richard Christensen accepted the award. The resolution was adopted.
Item A6: Resolution Proclaiming March 24, 2012 as World Tuberculosis Day
- Supervisor Lavinino presented the resolution. Robin Barber spoke, expressing concern that the closure of the x-ray department would be an injustice to vulnerable populations who rely on it for tuberculosis screening. Dr. Charity Thoman, Deputy Health Officer, and other Public Health Department staff spoke about the prevalence of tuberculosis, the importance of proper treatment to prevent drug resistance, and the work of the Disease Control staff. The resolution was adopted.
Departmental Agenda Item 1: Alcohol, Drug, and Mental Health Services (ADMHS) Update
- Terri Nesich, Assistant CEO, introduced the report. Dr. Anne Dietrich, Department Director, provided an overview of ADMHS, noting it serves as the county mental health plan for Medi-Cal beneficiaries. She outlined the 2011-2012 budget of $76.2 million, detailing funding sources including the Core Mental Health Fund (Fund 44), the Mental Health Services Act (MHSA/Fund 48), and Alcohol and Drug services (Fund 49).
- Tom Alvarez, County Budget Officer, described the Medi-Cal reimbursement process, explaining that claims are submitted monthly, reimbursed at provisional rates, and settled over a six-year period following state audits. He noted that state claiming system changes since 2009 have caused significant issues, with denial rates rising from less than 2% to over 10% for all counties.
- Supervisors asked questions regarding the conversion of claim lines to patient visits, the reasons for changes in reconciled cost reports, and the lack of electronic pre-verification. Alvarez explained that internal controls have been improved to validate claims before submission, but the state’s processing delays and system changes continue to create challenges. He confirmed that the department has implemented processes to rebut inappropriate denials and reclaim eligible services.
- Department staff presented a detailed report on the ADMHS financial status, historical challenges, and proposed solutions. Key points included:
- Historical Context: Staff acknowledged that the department lacked adequate internal systems for many years, contributing to financial exposure. They detailed the impact of state audits, noting that the state can deny services up to six years after the fact. A specific example cited was a CEC missed program where services approved in 2008 were disallowed in 2014, resulting in an exposure of over $12 million.
- FY 2007-08 Challenges: The department self-disclosed incorrect billing activities discovered in FY 2007-08, with an estimated total of $9.3 million. This coincided with a $7 million budget shortfall and a $5.2 million budget reforecast. In response, the department initiated an adult system redesign, reduced CBO contracts, eliminated non-Medi-Cal allocations, and introduced evidence-based programs.
- FY 2009-10 and 2010-11 Responses: Challenges included the implementation of a new state Medi-Cal claiming system in December 2009 and inpatient costs reaching an all-time high of $9.3 million. Responses included daily management conference calls to triage inpatient resources, the addition of dedicated staff for contract monitoring and audits, and the hiring of a CPA and a cost analyst. The department also updated published charges and established formal settlement procedures with the Auditor-Controller.
- FY 2010-11 and 2011-12 Improvements: New tools for real-time revenue analysis were implemented, allowing for daily tracking of Medi-Cal reimbursable services. An electronic clinic appointment scheduling system was introduced to ensure billing completeness. Client intake and billing processes were standardized under a single supervisor. A new accrual methodology was adopted.
- FY 2011-12 Financial Impact: The department projected a $6.4 million negative financial impact for FY 2011-12. Identified offsetting solutions totaled approximately $3.1 million, leaving a net negative impact of $3.3 million.
- Accrual Issues ($3.7 million): Related to FY 2009-10 and 2010-11 activities, including denied claims and services that were claimable but not billed due to insurance priority rules.
- Operational Costs ($2.7 million): Included $1.5 million in increased inpatient costs and $630,000 due to lower staff vacancy rates than historically assumed.
- Revenue and Funding Sources: Discretionary funds totaled $12.8 million, down from a peak of $15.6 million. After deducting $6.8 million for mandated Medi-Cal matching, approximately $6 million remained for non-Medi-Cal services. However, identified non-Medi-Cal expenses totaled $8.7 million, creating a $2.7 million shortfall.
- Proposed Solutions for FY 2011-12 Gap:
- Use $1.2 million from ADMHS fund balance related to labor concessions.
- Move $1.4 million from the CARES program to MHSA funds.
- Utilize $500,000 from the Early Prevention, Screening, Detection, and Treatment funding stream.
- Staff noted that closing the remaining $3.3 million gap would require drastic program reductions, which they professionally advised against.
- FY 2012-13 Projections: The department anticipated a $1.3 million shortfall for the upcoming fiscal year. Proposed measures include managing Vista Del Mar beds to three per day, reducing out-of-county IMD beds, and potentially reducing homeless programs.
- Future Opportunities and Risks:
- RFP for Consultants: The CEO’s office issued an RFP for consultants to review operations.
- State/Federal Changes: AB 1297 allows counties to draw down more federal Medicaid dollars and extends claim submission time to 12 months. The Affordable Care Act is expected to expand Medi-Cal eligibility.
- Pending Liabilities: Staff indicated that two large funding sources are expected to settle within two months. A comprehensive report on total pending liabilities and booked reserves is planned for presentation to the Board in May.
Questions and Comments (ADMHS)
- Supervisor Gray: Requested clarification on why claimable services did not make it to claims. Staff explained that services were identified as Medi-Cal eligible but were filtered out due to other insurance priorities or eligibility issues.
- Supervisor Wolf: Asked for reconciliation between the pie chart on slide 4 (total costs ~$40 million) and slide 15 (unfunded needs). Staff clarified that slide 15 only shows unfunded non-Medi-Cal expenses, while other revenue sources cover the remainder.
- Supervisor Carbajal: Suggested that the Board consider merging the Mental Health Department with the Health Department and requested an analysis of this option. The CEO’s office noted that an RFP for consultants is already in place to review operations and could include this analysis if directed by the Board.
- Chair Farr: Noted that the Board has eliminated and merged departments in other areas to save money and requested that ADMHS review staffing levels and services/supplies budgets for potential reductions. Staff agreed to review and provide information.
- Supervisor Gray: Expressed concern about the suggestion of eliminating services, noting that this is the first time such drastic cuts have been proposed. Staff reiterated that while possible, they professionally advise against it.
- Supervisor Wolf: Emphasized the importance of the Board being informed about service cuts before they are implemented. Requested that the May report include options for cost savings that do not disrupt services.
- Supervisor Carbajal: Asked for a timeline on when the CEO’s office will present the fiscal outlook and service level impacts. The CEO’s office stated that a fiscal outlook update is planned for April, with final service level impacts to be finalized in the coming weeks ahead of the mid-May proposed budget.
Public Comment (ADMHS)
- Charles Huffines (Mental Health Commission Member): Supported the department director’s proposals, stating the Commission backs the department. He highlighted MHSA-funded programs and their positive impacts.
- Jason Prostowski (Emergency Department): Reported that mentally ill patients are staying in emergency departments for over 60 hours waiting for psychiatric beds. He urged the Board not to eliminate services for the mentally ill and indigent.
- Deborah Barnes (Outreach Worker): Described a lack of available crisis services for homeless individuals with mental illness. She urged the Board not to cut services for the homeless and mentally ill.
- Margie Hunt (Mental Health Systems): Provided positive feedback on the contractor relationship with ADMHS, specifically highlighting the effectiveness of the quarterly scorecard feedback system.
- Unidentified Speaker: Urged the board to address alleged violations of state laws regarding client access and called for a lawsuit against the county. Suggested transferring the department to Cottage Hospital.
- Dr. Christopher Flynn (Santa Barbara Cottage Hospital): Reported on the impact of long psychiatric holds on the emergency department. Requested that the county consider the burden on emergency departments when making budget decisions.
- Nancy McCready: Expressed concern about the lack of services for individuals in crisis on the streets and requested a forensic audit before any program cuts.
- Tim Rode (Mental Health Commission): Clarified that the Commission supports the administration. Highlighted services provided and the need for increased outreach to underserved communities. Noted concerns regarding crisis residential beds in South County and revenue declines.
- George Green (SEIU Local 620): Stated that the general fund contribution to ADMHS is significantly lower than contributions to Public Health and Social Services. Opposed the amalgamation of public health and mental health departments.
- Carol Leaf: Questioned the status of a $3.3 million unspent fund for the "Bringing Them Home" program. Challenged the accuracy of previous financial statements regarding pension liabilities and questioned the necessity of hiring an outside blue ribbon panel.
- Richard Osborne: Expressed appreciation for the services received through the ADMHS system.
Board Discussion (ADMHS)
- Supervisor Lavagnino: Inquired whether the California State Association of Counties (CSAC) is addressing the financial issues. Staff clarified that CSAC has not placed this specific issue on its agenda because it does not affect all counties uniformly.
- Supervisor Carbajal: Asked for clarification on state-level efforts and healthcare reform impacts. Staff noted that the California Mental Health Directors Association is working on legislative relief (AB 1297) and that the county is engaging with this association to address billing system changes and denial rates.
- Supervisor Wolf: Moved to receive and file the report (Item 1A) and direct the department to return to the board in May with further information on financial projections, including staffing levels and potential efficiencies that do not eliminate programs.
- Supervisor Carbajal: Requested that the motion include an analysis of opportunities provided by consolidation.
- Staff (CEO Waller): Clarified that immediate drastic program reductions were not recommended due to safety concerns and the need for 30-day notices. Distinguished between immediate financial adjustments and the Request for Proposal (RFP) process for strategic restructuring.
- Supervisor Carbajal: Moved to pursue an RFP to examine departmental options, including consolidation and a stakeholder task force for strategic restructuring.
Motions and Votes (ADMHS)
- 1. Motion: To receive and file the report and direct the department to return to the board in May with further information on financial projections, including staffing levels and other efficiencies.
- Seconded: Yes.
- Outcome: Passed.
- 2. Motion: To pursue an RFP to examine departmental options, including consolidation and a stakeholder process for strategic restructuring.
- Seconded: Yes.
- Outcome: Passed.
Closed Session Report
- The board reported one reportable action from closed session: In the case of Terrace v. County of Santa Barbara, the board unanimously directed county counsel and outside counsel to initiate a cross-complaint relating to the 2006 settlement agreement.
Agenda Item 2: Indian Gaming Special Distribution Fund Grants
- Ms. Nisic presented the state allocation of $9.1 million for casino impact mitigation, with $736,752 allocated to Santa Barbara County. The funds are intended for law enforcement, fire suppression, and emergency medical services.
- County Fire Department requested $501,000 for a firefighter paramedic position at Station 32.
- Sheriff’s Department requested $736,752 for law enforcement services, with a portion requested as a multi-year rollover.
- Due to limited funds, staff recommended approving the Sheriff’s request for $267,995 (partial reimbursement for FY 11-12) and directing the remaining $468,757 to the Fire Department for partial reimbursement of costs.
- Dr. Robert Jones expressed support for the distribution of funds to the county.
Motion and Vote (Indian Gaming)
- 1. Motion: To approve the submission of grants for the Indian Gaming Special Distribution Fund as recommended by staff ($267,995 to Sheriff’s Department and $468,757 to Fire Department).
- Seconded: Yes.
- Outcome: Passed.
Agenda Item 5: Santa Barbara Ranch Inland Development Agreement – Consent to Transfer
- Ms. Black presented a request for the county’s consent to a transfer agreement between SBRHC Inc. and CIP2-BRSBR Limited Liability Corporation for the Santa Barbara Ranch project. The Inland Development Agreement remains in effect following the rescission of the Coastal Development Agreement. The project is subject to ongoing litigation. Under Section 8.02 of the agreement, the county may refuse consent only if the transferee’s reputation and financial resources are insufficient to perform the assumed obligations. CIP2 (owned by Cross Harbor) has approximately $425 million in discretionary capital commitments and a $125 million line of credit. They have committed $300,000 to meet the specific obligations under the agreement (creek restoration plan). Staff recommended the board receive the request and either authorize the chair to execute the consent-to-transfer agreement or determine that the county cannot reasonably consent due to inadequate evidence of financial resources.
- Deborah Rosenthal (Counsel for First Bank/SBRHC) stated that the issue is narrow: whether CIP2 has the financial resources and reputation to assume the developer’s obligations. David Thurman (Mondrock Partners/CIP2) confirmed that all requested financial information was provided. Jay Hart (Cross Harbor Capital Partners) confirmed Cross Harbor’s substantial capitalization and commitment to honoring the conditions of the existing agreement. Richard Monk (Counsel for CIP2) argued that since no further financial information has been requested by the county, the board should consent to the transfer.
- Chair Farr asked for clarification on the $300,000 commitment versus the total capitalization of Cross Harbor. Jay Hart clarified that the $300,000 is the specific amount required by the agreement for the creek restoration plan.
- The Board discussed the financial obligations and reputation requirements associated with the proposed transfer of the Inland Development Agreement to SIPP (a partnership involving CIP, Bond Rock, and Tom Gray). The Clerk of the Board inquired about specific financial responsibilities implied in the development agreement, including obligations related to Dos Pueblos Ranch and agricultural conservation easements (ACE). Representatives for the transferor (SBRHC) and transferee (SIPP) clarified that the current decision focuses solely on the transferee’s financial capacity and reputation. They stated that the pending court litigation regarding ownership disputes does not affect the Board’s authority to consent to the transfer. The transferor’s attorney noted that the ownership of the property subject to the agreement is not in dispute, but rather the specific legal standing of the development agreement’s transferability. The transferee’s representative stated that SIPP is prepared to assume all obligations under the agreement, including the $300,000 advance payment required before grading or construction.
- Public comments were received from Mark Shutillo (Naples Coalition) and Nathan Alley (Environmental Defense Center/Surfrider Foundation), who argued that the transfer should not be approved due to ongoing litigation challenging the validity of the development agreement and the ACE, as well as concerns regarding the transferee’s sustained financial resources and reputation. Tom Gray spoke in support of the project, referencing the conservation efforts of the Dos Pueblos Ranch preserve. The transferor’s attorney corrected the record regarding the expiration date of the ACE agreement and the involvement of the California State Teachers Pension Fund.
Motion and Vote (Santa Barbara Ranch)
- Supervisor Carbajal moved to continue the item until after the pending court hearing to allow for a clearer resolution of the legal issues. Supervisor Lavagnino seconded the motion. During deliberation, Supervisor Lavagnino proposed continuing the item to May 1, 2012, to allow time for the court proceedings. The County Counsel confirmed that the 45-day response clock under the development agreement could be waived by the expressed consent of both parties. The transferor and transferee both consented to the continuance. The motion to continue the item to May 1, 2012, was passed.
Agenda Item 3: Sole Source Purchase of Inmate Medication
- The Sheriff presented a request for a sole source purchase of medication for an inmate with a life-threatening condition. The inmate, incarcerated for attempted murder, requires several doses per week of an expensive medication. The Sheriff explained that the medication was previously funded through a federal grant that is unavailable to individuals in custody. After negotiating with DRG Pharmacy in Oxnard, the cost was reduced from $3,100 to $2,700 per dose. The Sheriff estimated that if the inmate remains in custody for a year, the cost could reach up to $500,000, which exceeds the annual budget for jail pharmaceuticals. The Sheriff noted that the county is legally mandated to provide medical care to inmates. Alternatives, including electronic monitoring, were deemed inappropriate due to the severity of the charges. The Sheriff also highlighted broader challenges related to AB 109 (criminal justice realignment), which may result in longer-term inmates with complex medical needs.
- Board members asked questions regarding the timeline for the inmate’s trial, the possibility of reimbursement from private insurance or state programs, and the option of purchasing medication from international sources. The Sheriff indicated that the trial timeline is uncertain and that the inmate has no private insurance. The Sheriff also mentioned that the county had previously considered purchasing catastrophic insurance for such events but declined due to high premiums. Supervisor Wolf suggested that the Budget Committee investigate state legislation to reimburse counties for such costs.
Motion and Vote (Inmate Medication)
- A motion was made and seconded to approve the sole source request for the Sheriff’s Office to purchase the medication from DRG Pharmacy. The motion was passed.
Agenda Item 4: Housing Authority of Santa Barbara County Pescadero Lofts Apartment Project
- Staff presented the Pescadero Lofts project, a 33-unit affordable housing development in Isla Vista. The project involves rezoning the site from 20 to 30 units per acre (SRH-30) and utilizing the State Density Bonus Program to increase density by 35%. The project targets homeless and formerly homeless individuals. Staff noted that the Planning Commission recommended approval 5-0. The applicant withdrew a request to waive development impact fees due to requirements for identifying alternative funding sources. The project includes 100% adaptable units for persons with disabilities and 5% fully accessible units.
- John Polanski, the applicant, confirmed the withdrawal of the fee waiver request to expedite the project. He stated that the project would serve formerly homeless individuals and include supportive services. Tom Jess, the architect, described the design, emphasizing community integration, green features, and accessibility.
- Public comment was received from one speaker who expressed support for the project.
Staff Recommendations 1, 2, 3, and 4 (Including Revisions and Retention of Conditions 36 and 39)
- Staff indicated they had no further comments and offered to answer questions. A board member stated that the project aligns with community needs for single-room occupancy and wraparound service housing for the homeless and disabled populations in Isla Vista. The member expressed support for the project and the work of the project team.
Motion and Vote (Pescadero Lofts)
- A motion was made to approve staff recommendations 1, 2, 3, and 4, including revisions noted in the staff memo and the retention of conditions 36 and 39. The motion was seconded and carried (passed).
Adjournment
- A board member proposed adjourning the meeting in honor of John P. Jack Forrest, age 95, who passed away on March 15. The member provided a biographical summary of Forrest’s life, including his education at UCLA, service in the Navy Reserve during World War II, work at Boeing and Vandenberg, attendance at UCSB and Allan Hancock College, membership in the Sierra Club, and roles as a docent at La Purísima Mission, soap maker, and weaver. The board accepted the proposal to adjourn. The next meeting is scheduled for April 3 in Santa Barbara.