Board of Supervisors — 2020-06-09

Planning and Development Code Amendment

• Staff requested a hearing to temporarily suspend development standards like setbacks and parking to ensure social distancing.
• The amendment would modify the County Land Use and Development Code and Coastal Zoning Ordinance.
• The board approved the request to set a hearing for June 16, 2020.

Fiscal Year 2020-2021 Budget Overview

• The CEO and Budget Director presented a $1.19 billion budget addressing a $21.7 million revenue loss and $5.6 million in direct pandemic costs.
• Cannabis tax revenue and strategic reserves were identified as primary sources to backfill lost revenues.
• Staff noted that approximately $18.1 million in departmental expansion requests remain unfunded in the recommended budget.

Public Safety Functional Group

• The group accounts for 48% of the General Fund contribution, with Prop 172 revenue losses backfilled by cannabis tax revenue.
• Unfunded requests included positions for the District Attorney, Public Defender, and Sheriff, including a cannabis enforcement team.
• Board discussion focused on historic jail population lows, racial disparities, and the feasibility of community-based alternatives to incarceration.

Health and Human Services Functional Group

• Staff presented budgets for Behavioral Wellness, Public Health, and Social Services, including $10.8 million to backfill realignment losses.
• The department is evaluating the potential closure of the Lompoc Animal Services shelter due to decreased animal populations.
• Expansion requests included two animal welfare specialist positions and the conversion of a part-time chief veterinarian to full-time.

Community Resources and Public Facilities Functional Group

• Staff presented budgets for Planning, Public Works, and Community Services, noting that public service counters remain closed.
• Expansion requests included $941,000 for Community Services projects and $3.6 million for Public Works deferred maintenance.
• Board discussion addressed cannabis revenue projections and the continuation of the utility-grade solar ordinance.

General Government and Support Services Functional Group

• Staff presented budgets for Audit Controller, Clerk Recorder, General Services, and Human Resources.
• Expansion requests included an entry-level programmer for the Clerk Recorder and contract compliance positions for General Services.
• No public comment was received for this functional group.

Policy and Executive Functional Group

• Staff presented the budget for the Policy and Executive group, focusing on leading the county’s COVID-19 response.
• Expansion requests included an additional OEM deputy director and a consultant to update the Emergency Management Ordinance.
• One supervisor requested to speak to this group at a later time.

Office of County Council Presentation

• The Office of County Council reported recovering over $30 million from Southern California Edison following the Thomas Fire.
• Staff noted a 97% retention rate and significant legal work performed through teleworking during the pandemic.
• The department requested the board consider delaying non-time-critical projects to reduce overtime and prevent staff burnout.

One-Time Funds Allocation

• The board discussed allocating $688,200 in unallocated one-time funds to specific priorities.
• A motion was made to allocate $500,000 to an equity fund and $162,000 to the Assisted Outpatient Treatment program.
• An amendment was proposed to allocate the remaining $188,200 to Animal Services for needs such as a veterinarian or shelter transition.

Budget Resolution and Adoption

• The board adopted Attachment E, which includes language for the equity fund, AOT funding, and Animal Services allocation.
• The Fiscal Year 2020-21 budget was adopted, including the three-year extension for assisted outpatient treatment.
• The board approved the successor agency budget for the former County of Santa Barbara Redevelopment Agency.

Meeting Opening and Roll Call

• The Santa Barbara County Board of Supervisors convened for the June 9, 2020 meeting and budget hearings for fiscal years 2020 and 2021. The Clerk called the roll, confirming the presence of all five supervisors. The board recited the Pledge of Allegiance. The Chief Executive Officer (CEO) reported no CEO report for the day. The Clerk announced procedures for public comment via phone and noted that public comment periods would follow each functional group presentation.

General Public Comment

• Three members of the public spoke on general matters not on the agenda. One speaker expressed frustration regarding county posters promoting demonstrations as a right, questioned the timing of statements regarding the manageability of the COVID-19 situation, and noted the lack of a COVID update on the current agenda. A second speaker discussed statistical criteria for moving between pandemic phases, arguing that recent test positivity rates exceeded the county’s criteria for reverting to stricter lockdown measures. A third speaker expressed support for the board’s direction regarding social issues but voiced concern about calls to dismantle police forces, advocating for police reform and training changes rather than abolition.

Administrative Item No. 1

• Description: A request from Planning and Development to set a hearing for June 16, 2020, to consider recommendations from the County and Montecito Planning Commissions. The item involves amending the County Land Use and Development Code (LUDC), the Article 2 Coastal Zoning Ordinance, and the Montecito LUDC to authorize the temporary suspension of certain development standards (such as setbacks, site coverage, parking, and enclosed building requirements) to ensure social distancing and public health compliance related to COVID-19.
• Discussion: No public comment was received. A motion was made and seconded to approve the item.
• Decision: The motion passed unanimously.

Fiscal Year 2020-2021 Budget Hearings

CEO and Budget Director Presentations

• CEO Mona Miyasato presented an overview of the recommended budget, emphasizing the county’s transition through the pandemic and economic uncertainty. She highlighted the county’s resilience compared to the Great Recession, noting that prior restraint on spending and reserve building allowed for the maintenance of service levels. Key points included a total anticipated revenue loss of $21.7 million, estimated direct costs to respond to COVID-19 of $5.6 million, and the use of cannabis tax revenue, strategic reserves, and other funds to backfill losses. The presentation acknowledged the continuation of major capital projects, including the Northern Branch Jail, the Tahegas Resource Recovery Center, and the Mental Health Rehab Center in Lompoc, and noted Supervisor Adam’s final budget cycle.
• Assistant CEO and Budget Director Jeff Rappell provided detailed financial context. He broke down the $21.7 million revenue loss, including $3.6 million in General Fund discretionary revenues, $10.6 million in realignment funds, $3.9 million in transportation revenues, and $3.6 million in Prop 172 public safety sales tax. The $5.6 million response cost includes potential alternative care sites, EOC operations, temporary shelter, testing/contact tracing, and paid leave. Rappell noted that these response costs would likely be eligible for CARES Act reimbursement if funds are distributed by the state, subject to a December 31 spending deadline. He discussed the Governor’s May Revised Budget, which projected a $54 billion deficit, and ongoing negotiations regarding federal aid. The recommended budget is $1.19 billion, with FTE staffing increasing from 4,255 to 4,304. General Fund discretionary revenues are projected to grow by 8.9% ($24.5 million). Retirement contributions are expected to increase by 8.8% to $151.7 million. Total maintenance funding is approximately $19.6 million. Approximately $14.1 million in cannabis tax revenue is allocated for enforcement, administration, backfilling losses, and specific program expansions. Approximately $18.1 million in expansion requests from 12 departments remain unfunded in the recommended budget.

Public Safety Functional Group

• Rappell presented the Public Safety functional group, comprising six departments (Court Special Services, District Attorney, Fire, Probation, Public Defender, and Sheriff). This group accounts for 48% of the General Fund contribution, 32% of operating expenditures, and 36% of FTEs. Prop 172 revenue losses of $3.6 million were backfilled using cannabis tax revenue to preserve service levels. Unfunded requests included:
• District Attorney: Two unfunded requests totaling $460,000.
• Public Defender: Six unfunded requests totaling approximately 6 FTEs, with ongoing costs of $419,000 and one-time costs of $475,000.
• Sheriff: Seven unfunded requests totaling 37 positions, with ongoing costs of $5.5 million and one-time costs of $1.7 million.
• Cannabis Requests: District Attorney requested a vehicle ($41,003 one-time, $5,000 ongoing); Sheriff requested a six-FTE cannabis enforcement team ($1.2 million ongoing, $300,000 one-time).

Public Comment

• Six members of the public spoke on this functional group.
• One speaker criticized the Public Defender’s Office for being underfunded and suggested privatization. They expressed concern over rhetoric regarding funding priorities for mental health versus public safety and called for more board oversight of the budget process.
• One speaker referenced the Lompoc federal prison situation and advocated for decarceration policies, urging agencies to reduce jail populations and invest in community-based programs.
• One speaker supported efforts to reduce incarceration, citing the disproportionate impact on people of color and those with mental health issues, and noted that the county had successfully reduced jail populations during the pandemic.
• One speaker urged the board to adopt a 360-degree approach to reducing arrests and incarceration, citing disparities in the incarcerated population. They recommended investing in prevention, early childhood education, and treatment rather than prosecution.
• One speaker stated that the pandemic demonstrated the feasibility of holding people accountable for minor offenses outside the jail system and called for the reallocation of resources from incarceration to community-based support.
• One speaker expressed disagreement with the reliance on cannabis tax revenue to address the recession, citing discrepancies between reported cannabis tax revenue used and generated revenue, and requested a realistic assessment of cannabis revenue sources and costs.

Board Discussion

• The board discussed the historic lows in jail population and the disproportionate representation of Black and Hispanic individuals in the jail population compared to the general county population. The Chair emphasized the need to avoid returning to "business as usual" and to institutionalize the collaborative efforts achieved during the pandemic response. One supervisor supported the call to action, arguing that a high percentage of the jail population awaiting trial is unjust and costly, and advocated for faster judicial processing and increased use of home monitoring. Another supervisor expressed caution, citing recent increases in property crime and violent incidents, and requested data on how the reduced jail population affects community safety. They supported community-based programs but warned against a "pendulum swing" in policy. Another supervisor highlighted inequities in the criminal justice system and supported the mapping project to identify appropriate resources for 911 calls, questioning the necessity of armed deputies for all calls. Another supervisor argued against the characterization of the system as endemically racist based solely on demographic data and warned of a "pendulum" effect where public demand for order increases after periods of perceived chaos. The Chair described the pandemic response as a "grand experiment" that successfully released 300 people into the community with alternative monitoring and called for a plan to institutionalize these lessons. One supervisor asked for clarification on the timeline between the current budget hearing and the upcoming public hearing and suggested setting aside funds to act on public input. The Chair clarified that the current discussion is to illuminate the issue and create urgency for planning, not to conclude the process, noting that the new Northern Branch Jail will open regardless. One supervisor mentioned the long-standing budget requests for body cameras for the Sheriff’s Department and requested that this be part of the ongoing conversation.

Health and Human Services Functional Group

• Staff presented the budget for Behavioral Wellness, Child Support Services, First Five, Public Health, and Social Services. The group comprises 8% of the general fund contribution ($24.4 million) and 35% of operating expenditures.
• Behavioral Wellness: $2.4 million allocated to backfill revenue losses.
• Public Health: Working on pediatric practice partnerships in North County; evaluating the potential closure of the Lompoc Animal Services shelter due to decreased animal population and facility deterioration.
• Social Services: $10.8 million allocated to backfill realignment losses.
• Expansion Requests: Two animal welfare specialist positions ($151,000 ongoing, $5,100 one-time) and conversion of a part-time chief veterinarian to full-time ($87,800 annualized).

Board Discussion

• One supervisor inquired about the timeline and process for the potential closure of the Lompoc Animal Services Shelter and potential savings from reallocated staff. Staff indicated the department is in preliminary evaluation of feasibility. Another supervisor expressed concern that economic downturns typically lead to increased abandoned pets, suggesting the need for additional outreach before closure. The Chair suggested that the decision to close the shelter should be made in collaboration with the incoming Animal Services Director and stakeholders. Staff clarified that the department is exploring consolidation of North County shelters, reported that 75% of animals in the North County shelter were adopted during the pandemic, and stated that recruitment for the director is underway. One supervisor asked about contract flexibility for the veterinarian position if funds are not available in subsequent years. Staff explained that the department currently uses contract veterinarians for DEA licenses and permits and hoped to use funds from shelter consolidation to support a full-time position.
• The Chair raised the topic of funding the Assisted Outreach Treatment (AOT) Program to include court-ordered processes. Staff stated that the budget materials included an option for the board to allocate approximately $162,000 to maintain intensive outreach and engagement staffing, legal consultation, and psychologist consultation.

Public Comment

• One speaker supported the animal services budget request, describing it as a restoration of previously authorized positions that had been left vacant.
• One speaker supported the expansion request, noting that previously authorized positions had disappeared, and requested support for the full-time veterinarian position and the restoration of budget lines.
• One speaker criticized the Public Health Department for not prioritizing nursing home testing, questioned the allocation of resources for behavioral wellness and co-response teams, and requested a forensic audit of the Public Health Department and data on gang demographics.
• One speaker reiterated concerns about cannabis revenue discrepancies, requested adequate staffing for the Planning Department and an additional Sheriff’s cannabis enforcement team, and discussed the influence of media on societal attitudes toward minorities.
• One speaker read a letter supporting the animal services expansion request for a full-time veterinarian, noting that the three shelters take in over 6,000 animals annually and currently rely on a half-time contract veterinarian.

Community Resources and Public Facilities Functional Group

• Staff presented the budget for the Ag Commissioner, Weights and Measures, Community Services, Planning and Development, and Public Works.
• Planning and Development: Public service counters remain closed; electronic submittals continue.
• Public Works: 18% deferred allocation may be needed to backfill gas tax revenue losses.
• Expansion Requests:
• Community Services: 2030 ECAP development, library committee findings implementation ($642,000), Parktime Arts Commission Outreach Coordinator, LED lighting for youth sports fields, parks pavement rehabilitation, and Human Services Commission Capacity Building Mini Grants. Total: $941,000 ongoing, $1.98 million one-time.
• Public Works: $3.6–$3.7 million for additional deferred maintenance projects on roads.

Public Comment

• One speaker supported the long-range planning work plan, including the Energy and Climate Action Plan, and urged the board to continue funding for the utility-grade solar ordinance and policy amendments.
• One speaker reiterated confusion regarding cannabis revenue figures and questioned the net benefit of the cannabis industry to the county compared to traditional agriculture.

Board Discussion

• One supervisor clarified that cannabis tax revenues have exceeded budgeted amounts in recent years, projected current fiscal year revenue at approximately $9 million and next year’s estimate at $10.6 million, and explained that the discrepancy cited by the speaker was due to carryover funds from prior years. Staff clarified that if the board approves additional planning positions, part of their workload will be to move the utility-grade solar project forward. One supervisor added that permitting activities can be charged to applicants, providing additional revenue on top of tax revenue and property taxes.

General Government and Support Services Functional Group

• Staff presented the budget for Audit Controller, Clerk Recorder Assessor, General Services, Human Resources, Treasurer Tax Collector, Northern Branch Jail Project, and Debt Service.
• Updates: Audit Controller using $990,000 of fund balance for the Banner Project. General Services coordinating janitorial and space planning for social distancing.
• Expansion Requests:
• Clerk Recorder: Entry-level programmer for succession planning ($114,000 ongoing).
• General Services: Contract compliance position ($140,000) and internal HR manager position ($325,000 total for 2 FTE).
• Human Resources: Additional DBS for Administration and Operations Division.
• Treasurer Tax Collector: Financial office professional to lead Treasury and property tax operations in Santa Maria.

Public Comment

• No requests to speak were received for this functional group.

Policy and Executive Functional Group

• Staff presented the budget for the Policy and Executive group, focusing on leading the county’s COVID-19 response and readiness for reopening.
• Expansion Requests:
• OEM: Additional deputy director to support departments and partner agencies ($187,000 ongoing).
• CEO’s Office: Consultant to update the Op Area Joint Powers Agreement and Emergency Management Ordinance ($75,000).
• County Counsel: Legal office professional to support managing attorneys ($134,000).

Board Discussion

• One supervisor requested to speak to this group when convenient for the board.

Office of County Council Presentation and Budget Discussion

• The Office of County Council presented a budget snapshot highlighting the department’s role as the legal advisor to the Board of Supervisors.
• Litigation and Recovery: The office reported recovering over $30 million from Southern California Edison following the Thomas Fire, which also protected the county from repaying $110 million in federal assistance. Additionally, $677,000 was recovered in bankruptcy litigation against HVI Canyon.
• Workforce and Operations: The department cited a 97% retention rate over the past three years. Staff noted that significant legal work, including emergency rules for COVID-19 reopening, was performed largely through teleworking and extensive overtime.
• Staffing and Triage: The Office of County Council stated that current attorney staffing is adequate for current demands but requested the Board to consider delaying non-time-critical discretionary projects to reduce overtime and prevent staff burnout. The requested additional paralegal position was not included in the recommended budget.

Board Comments

• Supervisors acknowledged the department’s responsiveness during the pandemic. One supervisor emphasized the importance of planning before acting. Another supervisor noted the value of the legal staff’s availability. Another supervisor commented on the sustainability of the current workload and the necessity of the legal support for reopening efforts.

Budget Summary and One-Time Funds Allocation

• The CEO and Budget Director presented the financial outlook and options for allocating available one-time funds.
• FTE Equivalents: Staff provided FTE equivalents for funds allocated to various departments:
• Department of Social Services (DSS): ~66 FTEs ($10.8 million).
• Cannabis revenue backfill: ~25 FTEs.
• Public Works fund balance usage: 20–25 FTEs.
• Behavioral Wellness backfill: ~20 FTEs.
• Total estimated FTEs preserved: 131–136.
• Contingency Planning: Staff reported that departments are developing contingency plans for potential budget reductions of 2%, 4%, and 6% should the recession deepen or a second shutdown occur. The five-year financial forecast is being updated with stress tests.
• Available One-Time Funds: A total of $688,200 in unallocated one-time sources was identified. All ongoing revenue has been allocated.
• Retirement Fund Context: One supervisor provided context on the Santa Barbara County Employees’ Retirement System (SB CSRS), noting a swing from a 5% return in February to a negative 7% return in April, with a subsequent rebound. He expressed concern about future retirement costs.
• Cannabis Revenue: One supervisor noted that cannabis revenue provided $14.1 million in direct relief, supporting services in public safety, social services, libraries, and planning.

Allocation of $688,200 in One-Time Funds

• The Board discussed how to allocate the remaining $688,200.
• Proposed Uses:
• Equity Fund: One supervisor proposed dedicating $500,000 to an equity fund administered by the CEO’s office to address community concerns regarding systemic racism and criminal justice issues.
• Assisted Outpatient Treatment (AOT): Staff clarified that $162,000 could be allocated from the 990 mental health fund balance to fully fund the AOT program (Laura’s Law) for three years.
• Deferred Maintenance: One supervisor advocated for allocating funds to deferred maintenance, citing the accumulation of maintenance liabilities from $292 million to $463 million over the last seven budget cycles.
• Animal Services: One supervisor proposed using remaining funds for Animal Services needs, such as a veterinarian or shelter consolidation, pending further stakeholder input.
• Federal Aid Discussion: One supervisor discussed the potential for federal aid reimbursement (estimated $5–7.5 million) and suggested directing staff to return with a spending plan for priorities such as pension costs, deferred maintenance, and equity initiatives once funds are confirmed. Staff clarified that revenue cannot be appropriated until it is measurable and available, but the Board can provide policy direction for future allocation.
• Motion and Amendment:
• One supervisor moved to accept the staff recommendation on the budget resolution, including:
• 1. Allocating $500,000 to the equity set-aside in the 990 account. 2. Allocating $162,000 from the 990 mental health fund balance to fully fund the AOT program. 3. Adopting recommended actions A through H of the budget.
• Another supervisor moved to amend the motion to allocate the remaining balance ($188,200) to Animal Services for the next director to designate for specific needs (e.g., veterinarian, shelter transition).
• The amendment was seconded.
• The initial mover initially declined to incorporate the amendment into his motion, allowing it to stand as a separate amendment.
• The supervisor who proposed the amendment stated he would make a friendly or unfriendly amendment to add the remaining balance for Animal Services.
• The amendment was seconded.
• The initial mover stated he would not incorporate the amendment into his original motion.

Supervisor Adams’ Closing Remarks

• One supervisor delivered a final statement regarding the budget and county finances.
• Critique of Status Quo: He expressed disappointment with the status quo budget, arguing for a more aggressive approach to preparing for the "next normal."
• Fiscal Concerns: He highlighted the county’s unemployment rate (13.7%) and criticized the addition of nearly 50 FTEs and a 2.6% salary increase during the pandemic.
• Pension and Maintenance: He emphasized the need to address pension liabilities (nearly $170 million in payments) and deferred maintenance ($463 million). He argued that financing programs by deferring maintenance is unsustainable.
• Philosophical Stance: He advocated for a philosophy of preserving past investments and applying limited funds to affordable projects, rather than a "division of the spoils" approach.
• Personal Note: He expressed disappointment at not having a more profound impact on equity and future planning during his tenure.

Budget Resolution and Attachment E

• A motion was made to adopt Attachment E, which includes the language concerning assisted outpatient treatment (AOT), the equity fund of $500,000, and the movement of the remaining balance to Animal Services. The motion was seconded. After clarification that the motion includes the necessary funds for AOT’s continuation, a roll call was taken. The motion passed 4 to 1.

Fiscal Year 2020-21 Budget Adoption

• A motion was made to adopt the Fiscal Year 2020-21 budget. It was clarified that this adoption includes the language in the budget resolution extending assisted outpatient treatment for a further three-year period. A roll call was taken. The motion passed 4 to 1.

Departmental Item 2: Successor Agency Budget

• The clerk read Departmental Item 2 into the record, which is a hearing to consider recommendations regarding the Fiscal Year 2020-2021 recommended budget for the County of Santa Barbara as the successor agency to the former County of Santa Barbara Redevelopment Agency. No public comment was received. A motion was made to approve staff’s recommendation and was seconded. A roll call was taken. The motion passed 4 to 1.

Adjournment

• The meeting was adjourned to Thursday, June 11, 2020.