Board of Supervisors — 2020-09-01September 1, 2020

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BodyBoard of Supervisors
MeetingRegular Meeting
Date📅 September 1, 2020

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Meeting Summary

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At a glance

CEO Salary Adjustment and Sheriff’s RMS Waiver

  • The board approved a 2.5% performance-based salary increase for the County Executive Officer, effective September 7, 2020.
  • A verbal correction was made to the Sheriff’s RMS waiver to authorize the Chair, rather than the Sheriff, to execute the agreement.
  • The software upgrade agreement with Central Square Technologies is capped at $680,000.

Electric Vehicle Charging Stations

  • The board approved the installation of electric vehicle charging stations following public comment on grid reliability.
  • The motion passed with four votes in favor and one abstention.

COVID-19 Update

  • Santa Barbara County was assigned to Tier 1 (Purple) under the state’s new four-tier framework effective August 31, 2020.
  • Specific sectors including hair salons, malls, and libraries may open indoors at 25% capacity.
  • The board accepted the update on county case data, school waiver applications, and business recovery efforts.

Farmstays Ordinance Amendment Project

  • Staff presented a plan to amend land use codes to allow farmstays in inland areas, mirroring the Gaviota Coast Plan model.
  • The board directed staff to proceed with the project as soon as possible to avoid inefficiencies.
  • Broader agricultural tourism initiatives were suggested for inclusion in the Agricultural Tiered Permitting project.

Appeal of Caltrans-Gaviota Culvert Project

  • The board continued the item to return with findings for denial of the appeals filed by conservation groups.
  • Staff recommended denying the appeals and granting de novo approval subject to a land transfer condition.
  • The board encouraged further discussion and potential mediation between the parties regarding wildlife passage concerns.

Short-Term Rentals (STRs) in the Coastal Zone

  • The board directed staff to develop a regulatory program including primary residence requirements and annual business licenses.
  • The proposed ordinance will utilize overlay zones to differentiate areas north and south of Highway 101.
  • The motion to proceed with these parameters passed with one abstention.

Cannabis Compliance, Enforcement, and Taxation Update

  • Staff reported fourth-quarter tax revenue of $5.5 million and noted that proposed cultivation acreage exceeds established caps.
  • The board directed staff to work with the Treasurer-Tax Collector to provide better segmentation of tax data by business sector.
  • The application period for retail storefront licenses is tentatively planned for mid-October.

Fiscal Year 2019-2020 Year-End Budget and Financial Status Report

  • The General Fund ended with a positive variance of $3.8 million, while the Sheriff’s Department recorded a negative variance of $4.4 million.
  • The Sheriff’s Department reported a 25% decrease in overtime costs in the first two months of the new fiscal year.
  • The board received and filed the report noting that special revenue funds required fund balance usage to cover pandemic-related impacts.

Full summary

Meeting Opening and Roll Call

  • The September 1, 2020, meeting of the Santa Barbara County Board of Supervisors was called to order. The clerk called the roll, and all five supervisors were present. The board pledged allegiance to the flag.

Approval of Minutes

  • The board considered the approval of the minutes from the August 25 meeting. A motion to approve was made and seconded. The motion passed unanimously.

CEO Report and Announcements

  • The County Executive Officer reported there was no CEO report for the day. The Clerk provided announcements regarding public participation methods and noted the board’s intent to consider a 2.5% performance-based salary increase for the County Executive Officer, effective September 7, 2020, resulting in an annual salary of approximately $287,832. The Clerk also announced a verbal correction to Administrative Item A22 (Sheriff’s RMS waiver), clarifying that the recommendation should authorize the Chair, rather than the Sheriff, to execute the agreement with Central Square Technologies for a software upgrade not to exceed $680,000.

Administrative Agenda

  • The board considered the approval of the administrative agenda. Supervisor Adams requested to pull Item A14 for a separate vote.
  • Item A14 (Electric Vehicle Charging Stations): Public comment was provided regarding grid reliability and reliance on renewable energy sources during emergencies. A motion to approve Item A14 was made and seconded. One supervisor abstained. The motion passed with four votes in favor and one abstention.
  • Item A18 (CEO Salary Adjustment) and Item A22 (Sheriff’s RMS Waiver): Public comment was provided regarding public official salaries and pension costs. A motion to approve the remaining administrative agenda, including the verbal correction for Item A22, was made and seconded. The motion passed unanimously.

General Public Comment

  • Public comment was received regarding cannabis industry traffic, dust, and noise impacts on property, and the delay in the enforcement of the commercial cannabis prohibition ordinance in existing developed rural neighborhoods (EDRNs). A county representative explained that the county issued notice letters to impacted operations with a deadline of December 15, 2020, for transition and shutdown, citing an orderly phased shutdown. The representative confirmed the county is in contact with the state regarding the status of provisional licenses.

Departmental Item 1: COVID-19 Update

  • The board heard a presentation regarding the county’s COVID-19 status and the state’s new "Blueprint for a Safer Economy" tiered framework.
  • County Data: As of the previous day, the county had 8,143 total cases, 228 active cases, 43 hospitalized patients, and 93 deaths. Hospitalization, med-surg, and ICU rates had decreased over the past two weeks.
  • New Tier Framework: The state replaced the daily monitoring list with a four-tier system based on case rates and testing positivity. Santa Barbara County was assigned to Tier 1 (Purple) effective August 31, 2020. To advance to Tier 2 (Red), a county must remain in the current tier for a minimum of three weeks and meet the criteria for the next tier for two consecutive weeks. The first re-assessment is scheduled for September 8, 2020.
  • Sector Changes: Effective August 31, hair salons, barbershops, malls, and libraries may open indoors at 25% capacity with modifications.
  • School Waivers: Fourteen elementary school waiver applications had been received, with 10 reviewed and anticipated to be sent to the state for final approval. Testing infrastructure for schools was discussed, including community-based testing stations and potential future availability of saliva self-collection tests.
  • Mask Guidance: The importance of mask-wearing was emphasized, noting that N95 masks are reserved for healthcare workers, while surgical masks and multi-layer cloth masks are effective for the general public. Masks are not recommended for children under two or individuals with specific medical conditions.
  • Business Recovery (RISE): An update was provided on the RISE business recovery program, noting 4,026 businesses had submitted applications. Resources on the recoverysbc.org website, including the RISE Ambassador Program and violation reporting, were highlighted.
  • Isla Vista/UCSB: Efforts to reduce transmission in the Isla Vista area were discussed, including collaboration with UCSB, the Sheriff’s Department, and community ambassadors to promote social distancing and mask-wearing.
  • Public comment was received expressing disappointment with the state’s new framework and frustration with the decision to move to a more restrictive tier despite declining hospitalizations. Board discussion focused on the economic impact of the current strategy, the importance of reducing transmission, and the concerns of business owners regarding uncertainty and restrictive capacity limits. A motion was made to accept the item. The motion passed unanimously.

Departmental Item No. 2 – Farmstays Ordinance Amendment Project

  • Planning and Development staff presented the scope of the Farmstays project, which involves amending the Land Use and Development Code, Coastal Zoning Ordinance, and Uniform Rules of the Agricultural Preserve to allow farmstays in inland areas, similar to the model established in the Gaviota Coast Plan. Staff outlined a timeline extending to summer 2021, including environmental review, community outreach, and Coastal Commission certification.
  • Board discussion included questions regarding the delay in implementing the Gaviota Coast Plan model and the potential for broader agricultural tourism opportunities. Staff recommended proceeding with the current Farmstays scope to avoid inefficiencies and suggested that broader ideas be incorporated into the Agricultural Tiered Permitting project.
  • Public comment was received from eight speakers, including representatives from the Farmstay Advisory Committee, local farmers, ranchers, wineries, and the San Ynez Band of Chumash Indians. Speakers generally supported the farmstay ordinance as a means to provide additional income streams for agricultural operations and promote educational opportunities. Several speakers urged the board to proceed with the ordinance as soon as possible and to consider broader agricultural tourism initiatives.
  • A motion was made to proceed with the Farmstays project based on the Gaviota Coast Plan model as soon as possible, and to move forward with the Agricultural Tiered Ordinance, including connections to the Recreation and Park Master Plan, if resources allow. The motion passed unanimously.

Departmental Item No. 3 – Appeal of Caltrans-Gaviota Culvert Project

  • A motion was made to add a public comment letter received on August 28 to the record. The motion passed unanimously.
  • Staff presented the appeal filed by the Gaviota Coast Conservancy and the Coastal Ranches Conservancy against the Planning Commission’s May 27, 2020, approval of the Caltrans-Gaviota culvert replacement project. The existing culvert, built in the 1950s, is in need of replacement. The proposed new culvert is approximately 500 feet long and located about 63 feet west of the existing one. Staff recommended denying the appeals, making the required findings for approval, and granting de novo approval of the project subject to an additional condition regarding the transfer of land interests to Caltrans.
  • Appellants argued that the Mitigated Negative Declaration (MND) is inadequate regarding wildlife passage and public access, citing new information on wildlife activity and policies in the Gaviota Coast Plan. They requested that the project be paused for revisions to accommodate wildlife crossings and public access, or that additional environmental review be directed.
  • Mitch Dallas, Senior Coastal Resources Specialist for Caltrans, presented the project as a highway maintenance effort to restore flow in a plugged culvert. He stated that the project is not a wildlife corridor, citing data indicating no wildlife corridor issues at the specific project location. He noted that the culvert’s physical conditions make it unsuitable for large wildlife passage and that the project would not preclude future trail development.
  • Appellant rebuttals argued that the lack of recorded wildlife deaths is a self-fulfilling prophecy due to the highway’s topography and poor design. They presented trail camera evidence of small wildlife using the culvert and urged the board to set a higher standard for wildlife accommodation. They emphasized the need for design modifications to accommodate wildlife passage and consistency with the Gaviota Coast Plan regarding sensitive wildlife and monarch butterfly protections.
  • Staff clarified that the project includes mitigation measures exceeding the requirements in the MND and supported the MND analysis, noting that wildlife corridors were discussed and found not to be present at the site. Staff stated that the project does not impact or prevent future trail development and that the monarch butterfly habitat is protected during construction.
  • A motion was made to continue the item and return with findings for denial, encouraging further discussion and potential mediation between parties. The motion was seconded. The motion to continue the item and return with findings for denial passed.

Departmental Item No. 4 – Short-Term Rentals (STRs) in the Coastal Zone

  • Staff presented options for regulating STRs in the coastal zone following the Coastal Commission’s 2018 denial of the county’s proposed ordinance. Staff outlined previous board directions to create a permit path for operators with five years of Transient Occupancy Tax (TOT) remittance history, which would limit eligible properties to 41. Staff noted this number is significantly lower than the 157 allowed in the original proposal and likely insufficient for Coastal Commission approval.
  • Staff presented data showing 205 STRs with documented stays as of August 2020, concentrated in the 1st and 2nd Supervisorial Districts. Staff reviewed regulatory approaches from other jurisdictions and recommended allowing STRs and homestays in commercial, mixed-use, and residential zones subject to permit or concentration limits, along with specific use standards.
  • Public comment was received from representatives of STR management companies and homeowners. Speakers discussed the importance of STRs for family accommodations, the role of professional management in maintaining property standards, and the need for affordable lodging. Some speakers urged the board to move away from strict property limits and consider concentration limits and professional management requirements.
  • Board discussion focused on the impact of second homes on housing stock, the need for revenue generation, and the decline in TOT collections. Staff provided input on potential mechanisms, including the use of overlays, annual business licenses, and concentration limits. Staff noted that Pacific Grove’s ordinance, which includes a one-year renewable business license, has received approval from the Coastal Commission.
  • The Treasurer-Tax Collector provided information on TOT collection methods, noting that the office reallocated internal staff to build the program due to budget constraints.
  • The Board discussed specific parameters for a potential ordinance, including primary residence requirements, annual business license processes, overlay zones differentiating north and south of Highway 101, concentration limits, grandfathering historic TOT payers, and caps on the number of allowed rentals.
  • A motion was made to direct staff to develop a program incorporating the following elements: primary residence requirements, annual business licenses, overlay zones differentiating north and south of the freeway, concentration monitoring, grandfathering of historic TOT payers, a cap on the number of rentals, and no bedroom restrictions. The motion was seconded. The motion passed with one abstention.

Agenda Item 5: Fourth Quarter Update on Cannabis Compliance, Enforcement, and Taxation (FY 2019-2020)

  • Staff presented an update on cannabis program activities. Key points included:
  • Tax Revenue: Fourth-quarter tax revenue was $5.5 million, with $1.1 million attributed to late payments from the third quarter.
  • Permitting: Nine applications were submitted in the fourth quarter. 17 land use permits and 4 coastal development permits have been issued to date. Proposed cultivation acreage exceeds the established caps for both inland and Carpinteria Agricultural Overlay District areas.
  • Licensing: 16 business licenses were issued to 11 unique operators. 1,133 active state licenses are held by operators in the county.
  • Enforcement: Enforcement activities were limited in the fourth quarter due to COVID-19 restrictions. No letters of authorization withdrawal were issued this quarter while the County develops a due process protocol with the State CDFA.
  • Retail Outlets: The application period for retail storefront licenses is tentatively planned for mid-October.
  • Track and Trace: The County remains part of a state pilot program for track and trace data. The State has clarified that enforcement use of this data is limited to state taxes, though the County may review raw data for its own purposes.
  • Public comment was received regarding enforcement levels in the Tepescay community and the need for adequate staffing. The Treasurer-Tax Collector requested that the KPMG report be made public and suggested scheduling a departmental item for the Grand Jury report response.
  • A motion was made to accept the staff report with a direction for staff to work with the Treasurer-Tax Collector to provide better segmentation of tax data by business sector and operator performance, while respecting confidentiality constraints. The motion was seconded. The motion passed unanimously.

Agenda Item 6: Fiscal Year 2019-2020 Year-End Budget and Financial Status Report

  • Staff presented the year-end financial status report as of June 30, 2020. Key findings included:
  • General Fund: Ended with a positive variance of $3.8 million.
  • Sheriff’s Department: Recorded the largest negative variance at $4.4 million, driven by overtime costs for training new staff, workers' compensation backfill, disaster/mutual aid costs, and COVID-19 response costs.
  • Community Services (Parks): Negative variance of approx. $400,000 due to pandemic-related shutdowns affecting camping and concession revenues.
  • Planning and Development: Negative variance of approx. $230,000 due to cannabis project appeal costs.
  • Positive Variances: Treasurer-Tax Collector, Auditor-Controller, and Probation departments ended with positive variances primarily due to salary savings from unfilled positions. The General Revenues department ended with a $6.5 million positive variance, driven by higher property tax returns, federal PILT, and interest income, partially offset by a $3 million loss in Transient Occupancy Tax.
  • Special Revenue Funds: Required to end balanced. Public Health used $2 million in fund balance, and Behavioral Wellness used $6 million in fund balance to cover pandemic-related impacts. The Courts required a $500,000 general fund transfer due to declining fines and fees and increased indigent defense costs.
  • The Sheriff provided additional context on the Sheriff’s Department finances, noting a 25% decrease in overtime in the first two months of the new fiscal year compared to the prior year. He explained that the previous year’s high overtime was driven by the training period for 107 newly hired deputies, which required backfill coverage. He reported that mandatory overtime at the jail had ceased as of the first week of July.
  • Board discussion focused on the trend in Sheriff’s Department spending and the improvement in overtime costs in the current fiscal year. A board member inquired about the current budget status, specifically regarding the replacement of overtime with staffed personnel. The responding official stated that the department is trending on budget and confirmed the strategy of hiring to allocated positions.
  • It was noted for the record that there were no requests for public comment on this item. A motion was made and seconded to receive and file the item. The motion passed unanimously.

Adjournment

  • The Chair reminded attendees that the following morning marked the one-year anniversary of the Conception Boat fire. A moment of silence was observed in memory of the 34 lives lost in the incident. The meeting was adjourned.