Board of Supervisors — 2019-01-15

Annual Report on the Psychiatric Health Facility (PUF)

• The report detailed operational improvements, including the establishment of an inpatient pharmacy and enhanced quality assurance measures.
• Staff highlighted significant system gaps, noting the county currently has zero in-county Mental Health Rehab Center beds.
• Discussion covered regulatory constraints on acute psychiatric bed limits and the facility's compliance with state and federal audits.
• The board received and filed the report, determining the action was exempt from CEQA.

Residential Property Assessed Clean Energy (PACE) Financing

• Staff explained that PACE financing uses super-priority liens on property tax bills to fund energy and water efficiency projects.
• Public comment was divided, with opponents citing risks to home sales and proponents highlighting access to necessary retrofits.
• The board directed staff not to pursue the implementation of a residential PACE program at this time.
• Staff were instructed to return in one year with an analysis of legislative reforms and potential fire hardening applications.

Closed Session

• The board considered existing litigation matters and labor negotiations for various employee groups.
• The board voted to appoint Mark Hartwig as the next Fire Chief of the Santa Barbara County Fire Department.

Agenda Item: Annual Report on the Psychiatric Health Facility (PUF)

Discussion

• Dr. Roberts presented the annual report from the PUF Governing Board, covering operations, quality of care, and program activities. Key points included:
• Inpatient Pharmacy: The facility established an inpatient pharmacy in September 2018 to improve medication compliance and safety. This included the implementation of an automated medication dispensing system (Pyxis) with barcode verification.
• Quality Assurance: The report detailed Quality Assurance and Performance Improvement (QAPI) efforts, including client satisfaction surveys, environmental care standards, and efforts to reduce restraint and seclusion. It noted improvements in hand-washing compliance and discharge summary completeness.
• Policy Review: The PUF Governing Board has reviewed 101 policies since its inception, with a significant focus on medication management, infection control, and crisis response.
• Emergency Preparedness: The report described staff efforts during the debris flow incident and fire drills, noting that contingency plans were formalized in February, including mutual aid agreements with San Luis Obispo and Ventura County.
• System Gaps: The presentation highlighted the lack of in-county Mental Health Rehab Centers (MHRCs) and the high cost of out-of-county placements for clients who do not qualify for acute PUF services. It noted that the county currently has zero in-county MHRC beds.
• Regulatory Changes: Questions were raised regarding potential federal waivers that could allow for more than 16 beds in acute psychiatric settings. The presenter explained that California currently holds a waiver for substance abuse treatment but would need to apply for a new waiver for acute psychiatric care, which would require state-level action and proof of cost neutrality.
• Oversight: The board noted that the facility is subject to regular audits by CMS and DHCS, as well as oversight by the Behavioral Wellness Commission.

Motion and Vote

• A motion was made and seconded to receive and file the report on the Psychiatric Health Facility and to determine that the action is exempt from the California Environmental Quality Act (CEQA). Outcome: The motion passed (5-0).
• ***

Agenda Item D2: Residential Property Assessed Clean Energy (PACE) Financing

Discussion

• Staff presented background on the Residential PACE program, which allows property owners to finance energy efficiency, water efficiency, and renewable energy projects through a lien on the property tax bill.
• Program Mechanics: PACE liens are super-priority liens, taking precedence over existing mortgages. Repayment is collected via the property tax bill.
• History and Concerns: Santa Barbara County previously paused its PACE program in 2010 due to concerns raised by the Federal Housing Finance Administration (FHFA) regarding the impact on home financing and resale. Commercial PACE was approved in 2018.
• Benefits and Risks: Proponents cited increased deployment of renewable energy, 100% financing options, and job creation. Opponents and staff noted concerns regarding super-priority liens affecting home sales, potential predatory lending practices, higher interest rates compared to other financing options (e.g., HELOCs), and administrative burdens on the county.
• Legislation: Recent state legislation (2017 and 2018) introduced consumer protections, including income-based underwriting, contractor training requirements, and mandatory phone consultations with property owners.
• Public Comment:
• Opposition: Speakers argued that PACE harms consumers, particularly low-income and elderly residents, by creating super-priority liens that complicate home sales. They cited the Auditor-Controller’s opposition and the risk of property value depreciation. One speaker urged the board to focus on core county functions like fire and flood safety rather than "activist agendas."
• Support: Speakers argued that PACE provides a necessary financing option for energy retrofits and fire hardening, especially for those who cannot afford upfront costs. They noted that PACE is heavily regulated by the Department of Business Oversight and that recent legislation has addressed many consumer protection concerns. One speaker highlighted personal experience using PACE for solar and HVAC upgrades at a competitive rate.
• Neutral/Contextual: Some speakers noted that while PACE has risks, it is one of many financing options and that the state has acted to regulate it. Others emphasized the importance of energy efficiency retrofits for climate change mitigation and fire safety.
• Board Discussion: Supervisors debated the balance between consumer protection and access to financing. Some expressed concern about the administrative burden and the Auditor-Controller’s consistent opposition. Others noted the potential for PACE to support fire hardening measures, which would require specific designation of high-fire zones.

Motion and Vote

• 1. Motion to Not Pursue: A motion was made and seconded to direct staff not to pursue the implementation of a residential PACE program at this time. Outcome: The motion passed.
• 2. Motion for Future Review: A motion was made and seconded to direct staff to return in one year with an analysis of how the recent legislative reforms have worked in other jurisdictions and to include an assessment of how fire hardening measures could be incorporated into a PACE program in Santa Barbara County. Outcome: The motion passed.
• ***

Closed Session

Discussion

• The Board convened in closed session to consider: 1. Two matters of existing litigation: Lillian Sokey v. The County (workers' compensation) and Service Employees International Union Local 620 v. County of Santa Barbara (Public Employment Relations Board). 2. A decision regarding the initiation of litigation while sitting as the Board of Directors of the Santa Barbara Fund for Public and Educational Access. 3. Conferences with labor negotiators for all bargaining units, unrepresented employees, managers, and executives. 4. The appointment of a public employee for the position of Fire Chief.

Decision

• The Board unanimously voted to appoint Mark Hartwig as the next Fire Chief of the Santa Barbara County Fire Department.
• Outcome: The appointment was approved.