Meeting Summary
Present: 3-Hartmann, 2-Capps, 4-Nelson, 5-Lavagnino, Williams
This summary was AI-generated to save you time. It may miss or misstate details, so verify against the official recording and the transcript.
At a glance
CEO’s Report and Storm Updates
- The Housing Element draft is scheduled for state submission at the end of March following the review of 450 public comments and seven new county-owned sites.
- Evacuation orders were issued for South County burn scars, with the Wake Center open as an emergency shelter and National Guard resources pre-positioned.
- Twitchell Dam releases are being managed to prevent uncontrolled spillover, with the public advised to avoid low-lying areas during peak rainfall.
Behavioral Wellness Department Contract
- The agreement with Idea Engineering Inc. for the suicide prevention program consultant was continued to the April 4 agenda.
- Supervisor Nelson requested the continuance to obtain additional information to ensure fiscal responsibility regarding the contract.
Climate Action Planning Services
- The second amendment to the agreement with Rincon Consultants Inc. was included in the general approval of the administrative agenda.
- Staff clarified that the current extension covers high-level planning, with detailed cost analyses to be presented when the Climate Action Plan is finalized.
Comprehensive Plan Annual Progress Report
- The 2022 Comprehensive Plan Annual Progress Report was included in the general approval of the administrative agenda.
- The Planning Commission is scheduled to hold two hearings on the recreation master plan to provide public input opportunities.
Laguna County Sanitation District Hearing
- The item to set a hearing for May 9 regarding ordinance changes for services and fees was included in the general approval of the administrative agenda.
- Vice Chair Lavagnino clarified that the current action is solely to establish the hearing date for full testimony and presentations.
Arbor Day Resolution
- The Board adopted a resolution proclaiming March 14, 2023, as Arbor Day in Santa Barbara County.
- Public Works staff noted this marks the county's 20th annual participation and 19th year as a certified Tree City USA.
Retirement Commendations
- The Board adopted resolutions of commendation honoring Michael Allen, Michael A. Villalobos, Glenn A. Sweeney, Curtis J. Clucker, and Chief Deputy District Attorney Magna Cola.
- Speakers highlighted the honorees' long tenure, contributions to crisis services, flood control, and criminal justice policy.
FY 2022-2023 Budget Status and Cannabis Update
- The General Fund projects a positive variance of $28.5 million, driven primarily by a $17 million increase in property taxes.
- Cannabis program revenues are estimated at $5.8 million for the fiscal year, down from a peak of $15.7 million due to market supply issues and operator attrition.
- The Sheriff’s Office completed five enforcement actions against the illegal market, seizing product with an estimated street value of $1.6 million.
- The Board approved the staff recommendation regarding the budget status and cannabis taxation compliance update.
Roads Fiscal Review and Funding Options
- Staff recommended adopting a budget policy to fully anticipate Measure A revenue in Fund 15 and increasing the General Fund Contribution by $1 million.
- The Board approved the staff recommendations for funding measures, with a separate future decision pending on potential permit fee increases.
- Public comment emphasized the importance of maintaining the 10% alternative transportation requirement for bike and pedestrian facilities.
Passed 5–0 · unanimous
Closed Session
- The Board met in closed session to discuss existing litigation involving Michelle Crane and anticipated litigation with significant civil liability exposure.
- The Board reported that it took no reportable action on these litigation items.
Full summary
Meeting Start and Roll Call
- The March 14, 2023, meeting of the Santa Barbara County Board of Supervisors was called to order. All five supervisors (Hartman, Capps, Nelson, Lavagnino, and Williams) were present. Supervisor Nelson noted that the meeting was held in two locations, with Vice Chair Lavagnino presiding over A-items from the Santa Maria location. The Pledge of Allegiance was recited.
Approval of Minutes
- Item: Approval of minutes from the March 7, 2023, meeting.
- Action: Supervisor Hartman moved to approve the minutes; Supervisor Nelson seconded.
- Discussion: None.
- Vote: Passed unanimously.
Passed 5–0 · unanimous
CEO’s Report and Storm Updates
- Housing Element: The CEO’s report noted that the public comment period closed in early March with 450 comment letters. The review identified seven new county-owned sites for potential rezoning and housing, as well as UCSB faculty/staff housing. The draft Housing Element is scheduled for state submission at the end of March, followed by a 90-day state review period.
- Storm Preparedness: OEM Director Kelly Hubbard and Sheriff’s Chief Hartwig provided updates on the ongoing storm system. Evacuation orders were issued at 8:00 AM for identified parcels in South County burn scars (Alice Hall, Cave, and Thomas). Door-to-door notifications were completed in warning and order areas. The Wake Center is open as an emergency shelter; no evacuation center is currently open in North County, though residents can call the county call center (833-688-5551) for assistance. Animal Services (805-681-4332) is available for animal evacuation support. Resources, including National Guard high-water vehicles and swift water rescue teams, are pre-positioned.
- Water Management: Public Works Director Walter Rubalcaba discussed water flow management. Releases from Twitchell Dam are managed by the Federal Bureau of Reclamation to prevent uncontrolled spillover. Current releases are approximately 2,500 CFS, expected to drop to 700 CFS during peak river flows. Uncontrolled spillover could reach 30,000 CFS, posing risk to the Santa Maria River. Flood Control staff are monitoring Pioneer Street in Guadalupe and creeks in Montecito. The Board advised the public to avoid driving in low-lying areas during the expected peak rainfall window (11:00 AM to 4:00/5:00 PM).
Clerk Announcements
- The Clerk announced the following agenda changes:
- Administrative Item 10: Recommended action letter D removed; subsequent actions re-lettered.
- Administrative Item 16: Withdrawn at the request of the Sheriff’s Office.
- Administrative Item 28: Changed from a resolution to an honorary resolution.
- Administrative Item 1: Requested continuance to the April 4 agenda.
- Public participation methods and virtual comment registration details were provided.
Administrative Agenda Items (Pulled for Discussion)
- Vice Chair Lavagnino presided over the discussion of pulled items.
- Administrative Item 1 (Behavioral Wellness Department): Agreement with Idea Engineering Inc. for FY 2022–2024.
- Discussion: Supervisor Nelson requested a continuance to April 4 to obtain additional information regarding the suicide prevention program consultant contract to ensure fiscal responsibility.
- Decision: The item was continued to the April 4 agenda.
- Administrative Item 5 (Community Services Department): Second amendment to the agreement with Rincon Consultants Inc. for Climate Action Planning Services.
- Discussion: Supervisor Nelson expressed concern that the contract extension lacked cost estimates for programs outlined in the Climate Action Plan, requesting detailed fiscal analysis before the Board commits to specific programs. Department staff clarified that the current item is solely to extend the contract for high-level planning, with detailed cost analyses to be presented when the Climate Action Plan is finalized. Supervisor Nelson stated he would support the extension but emphasized the need for future fiscal clarity. Supervisor Williams noted that while total costs are often unknown at the planning stage, fiscal planning should be integrated into the budget.
- Decision: The item was not pulled for a separate vote and was included in the general approval of the administrative agenda.
- Administrative Item 12 (Planning & Development Department): 2022 Comprehensive Plan Annual Progress Report.
- Discussion: A public speaker inquired about coordination between the Parks Division’s recreation management plan and the Planning & Development Department regarding zoning and comprehensive plan changes. Supervisor Hartman noted that the Planning Commission would hold two hearings on the recreation master plan, providing public opportunity for input.
- Decision: The item was not pulled for a separate vote and was included in the general approval of the administrative agenda.
- Administrative Item 19 (Public Works Department / Laguna County Sanitation District): Set hearing for May 9 regarding ordinance changes for services, connections, and trunk sewer fees.
- Discussion: A public speaker expressed frustration over sanitation costs and requested data on the number of homes in the unincorporated area to calculate costs. Vice Chair Lavagnino clarified that this item was only to set the hearing date for May 9, at which time full testimony and presentations would occur.
- Decision: The item was not pulled for a separate vote and was included in the general approval of the administrative agenda.
Approval of Administrative Agenda
- Action: Supervisor Hartman moved to approve the administrative agenda, including announced additions and changes. Supervisor Williams seconded.
- Vote: Passed unanimously.
Passed 5–0 · unanimous
Resolutions
- Administrative Item 23 (Sponsored by Supervisor Capps): Resolution proclaiming March 14, 2023, as Arbor Day in Santa Barbara County.
- Discussion: Bill Ortega from Public Works’ Urban Forest Department spoke, noting this is the county’s 20th annual participation and 19th year as a certified Tree City USA. Supervisor Capps thanked staff for their work in maintaining the urban forest.
- Vote: Passed and adopted.
- Administrative Item 24 (Sponsored by Supervisor Hartman): Resolution of commendation honoring Michael Allen upon his retirement from the Department of Behavioral Wellness after over 25 years of service.
- Discussion: Michael Allen, Tony Navarro, and John Winkler spoke, thanking the Board and acknowledging Allen’s contributions to crisis services and staff mentorship.
- Vote: Passed and adopted.
- Administrative Item 25 (Sponsored by Supervisor Hartman): Resolution of commendation honoring Michael A. Villalobos upon his retirement from the Public Works Department after over 26 years of service.
- Discussion: A Public Works representative spoke on behalf of the department, highlighting Villalobos’s experience with the 1998 storms and his leadership in the Flood Control District. Villalobos thanked the county for the opportunity to serve.
- Vote: Passed and adopted.
- Administrative Item 26 (Sponsored by Supervisor Lavagnino): Resolution of commendation honoring Glenn A. Sweeney upon his retirement from the Public Works Department after over 37 years of service.
- Discussion: A Public Works representative highlighted Sweeney’s role in emergency repairs during the 1998 Santa Maria River levee breach and his institutional knowledge. Sweeney thanked the county and his colleagues. Supervisor Lavagnino shared an anecdote about Sweeney’s proactive response during the January 9 storm.
- Vote: Passed and adopted.
- Administrative Item 27 (Sponsored by Supervisor Lavagnino): Resolution of commendation honoring Curtis J. Clucker upon his retirement from the Public Works Department after 37 years of service.
- Discussion: The resolution detailed Clucker’s career progression from equipment service worker to road maintenance manager and his involvement in emergency responses. Staff and Supervisor Lavagnino provided remarks regarding Clucker’s service, organizational skills, and direct communication style. Clucker addressed the Board, expressing gratitude and reflecting on his career. Supervisor Nelson also offered remarks supporting the resolution.
- Vote: Passed and adopted.
- Administrative Item 29 (Sponsored by Supervisor Lavagnino): Resolution of commendation honoring Chief Deputy District Attorney Magna Cola upon his retirement after 29 years of service.
- Discussion: The resolution highlighted Cola’s roles as deputy, filing deputy, and chief deputy, his work in criminal justice policy, mentorship, and prosecution of significant cases. District Attorney John Savernock read a letter from retired District Attorney Joyce Studley praising Cola’s service. Cola addressed the Board, thanking his colleagues and the Board. Supervisor Lavagnino shared personal anecdotes regarding their professional and social interactions.
- Vote: Passed and adopted.
General Public Comment
- The Chair called for public comment on non-agenda items. The Clerk reported no requests to speak.
Departmental Item 1: FY 2022-2023 Second Quarter Budget Status Report and Cannabis Taxation Compliance and Enforcement Update
- General Fund Financials: The Budget Director presented the second-quarter budget status. General revenues projected a positive variance of $23.1 million, primarily driven by a $17 million increase in property taxes due to higher assessed values and the resolution of a Prop 8 reassessment backlog. Other positive variances included interest income, transient occupancy tax (TOT), and sales tax. The Sheriff’s Office projected a negative variance of approximately $400,000 due to high overtime costs, currently offset by salary savings from vacancies. Six other departments reported positive variances driven by salary savings. The total anticipated positive variance for the General Fund is $28.5 million.
- Cannabis Program Financials: The Cannabis Division reported that Q2 revenues were initially $1.1 million but increased to $3.5 million as late filings were received. Total estimated revenue for the fiscal year is approximately $5.8 million, down from a peak of $15.7 million in 2021. The decline is attributed to a supply glut lowering wholesale prices, operator attrition (12 operators dropped out), and timing issues with new license approvals. The program has a high ending balance due to previous carryovers, which is being used to cover ongoing costs and board-designated allocations.
- Enforcement and Compliance: The Sheriff’s Office completed five enforcement actions against the illegal market, resulting in the seizure of plants and product with an estimated street value of $1.6 million. All five actions were referred for criminal prosecution. Enforcement efforts are increasingly focused on indoor grows, which are harder to detect than outdoor grows.
- Board Questions and Staff Responses:
- Supervisor Nelson asked for clarification on the Q2 revenue increase, noting it was new information that would affect forecasting. Staff confirmed they would update forecasts in April.
- Supervisor Lavagnino inquired about strategies to mitigate property tax timing variances and suggested that departments with budget surpluses should "buy back" positions previously funded by one-time cannabis revenues to improve budget mechanics. Staff indicated this would be addressed in upcoming budget workshops.
- Supervisor Lavagnino asked about the status of retail cannabis openings. Staff reported two retail locations are open (San Ynez and Isla Vista) and two more are in the building permit process (Upper State Street and Eastern Goleta Valley).
- Supervisor Hartman asked for a breakdown of enforcement actions (permit compliance vs. black market). Staff confirmed all five recent actions were against the illicit market. She inquired about the evolution of the black market, noting a shift to indoor grows. She also asked about the funding for ongoing compliance monitoring by Planning and Development, noting it is currently complaint-driven. Staff indicated that proactive compliance would require additional General Fund allocation or fee adjustments, which would be discussed in budget workshops.
- Supervisor Hartman asked about the cost of the California Cannabis Authority (CCA) consortium membership and whether it should be passed to the industry. Staff explained that costs are currently spread across operators in the county permit process and that fee updates are being considered to potentially include this cost.
- Supervisor Capps asked how TOT funds are spent, noting they are not segregated like cannabis funds. Staff explained that TOT, property tax, and sales tax are pooled into the General Fund and dispersed to all departments, making it difficult to track specific line items. She noted that strong General Fund performance mitigates concerns about declining cannabis revenues.
- Supervisor Capps asked for details on the 30.3 FTEs dedicated to the cannabis program. Staff explained these are funded by permitting fees, business license fees, and cannabis tax revenues, covering roles in planning, licensing, administration, and enforcement.
- Staff provided an overview of the personnel distribution across the cannabis program, noting that approximately 30 positions are dedicated to the program across nine different departments, with the Sheriff’s Office holding the majority of enforcement positions. Staff clarified that these positions are funded by permitting fees and license fees, not general fund taxes.
- Supervisor Capps raised concerns regarding the opportunity cost of the program, noting that revenue was significantly lower than projected (approximately $5 million) and that a substantial portion of operators were not reporting or paying taxes. She inquired about the extent of the "glut" in the market and whether the county’s production contributed to it. Staff responded that the county contributes to the state-wide glut but noted that the inability to ship product across state lines is a primary issue. Staff also addressed tax compliance, stating that while specific revenue loss figures are not currently available, the Treasurer-Tax Collector’s Office is conducting audits and using track-and-trace data to identify operators reporting zero revenue despite having taxable transfers. Staff confirmed that no licenses have been revoked for tax non-compliance to date, but the county has the authority to do so and is currently processing its first lien for non-compliance.
- Supervisor Lavagnino argued against the characterization of the program as inefficient, stating that the 30 positions are funded by cannabis revenue and would not be available for other county duties if the program were eliminated. He noted that cannabis revenue ($43 million since 2019) is comparable to Transient Occupancy Tax (TOT) revenue ($49 million since 2019) and emphasized the necessity of the program for funding black market enforcement.
- Supervisor Nelson stated that the agendized item is a budget update, not a policy debate, and urged the board to limit discussion to fiscal matters. He later commented on the need for proactive enforcement to deter black market activity and ensure compliance, suggesting that enforcement costs should be covered by cannabis tax revenue for the next few years.
- Supervisor Nielsen expressed support for a more transparent tax system in the future, noting that the current gross receipts tax is volatile and difficult to understand. She also inquired about the status of retail license deadlines and enforcement actions against illegal delivery services, particularly those selling to minors. Staff confirmed that all retail operations have met their deadlines and that over half of current enforcement actions target illegal street deliveries, with several cases involving sales to minors identified in the previous year.
- Supervisor Lavagnino asked about the availability of data on top TOT payers, which staff confirmed is protected by privacy laws.
- Action: Supervisor Lavagnino moved to approve the staff recommendation. Supervisor Hartman seconded.
- Vote: Passed unanimously.
Roads Fiscal Review and Long-Term Funding Options
- Discussion: Staff presented an analysis of the budget gap in the Roads Operations Fund (Fund 15), where ongoing operating costs have exceeded available revenue, leading to the depletion of fund balance. Staff outlined the three major transportation funds (Fund 15 for operations, Fund 16 for capital maintenance, and Fund 17 for capital infrastructure) and noted that Measure A revenue has grown 35% over the past five years, while General Fund Contribution (GFC) and HOODA revenue have remained relatively flat.
- Recommendations:
- 1. Adopt a budget policy to budget Measure A at fully anticipated amounts primarily in Fund 15, allowing for flexibility to address mid-year issues. 2. Increase the General Fund Contribution to Fund 15 by $1 million in the FY 2023-24 budget to cover increased administrative costs, such as liability insurance. 3. Consider permit fee increases when Public Works returns to the board in the coming months, which could add approximately $450,000 to revenue.
- Board Questions and Staff Responses:
- Supervisor Nielsen expressed support for the additional $1 million allocation but raised concerns about the impact of permit fee increases on small businesses and suggested exploring franchise fees as an alternative revenue source. Staff noted that franchise fees are currently part of the General Fund and could be reviewed.
- Supervisor Lavagnino asked for confirmation that the proposed Measure A budget policy remains consistent with the measure’s language regarding North/South County tracking and the 10% alternative transportation requirement. Staff confirmed that these requirements would be maintained.
- Chair Williams inquired about the current Measure A fund balance, which staff reported to be approximately $6.3 million. Chair Williams noted that while this is a one-time source, it is appropriate to use for road maintenance given the nature of the work.
- Public Comment: Mark Chatillo, representing the Committee for Land, Air, Water and Species, commented on the importance of maintaining and expanding bike and pedestrian facilities. He noted that the 10% alternative transportation requirement is a floor, not a ceiling, and urged the board to consider the environmental impacts of increased road traffic and the need for robust alternative transportation options.
- Action: Supervisor Capps moved to approve the staff recommendations for funding measures in items A through D. Supervisor Lavagnino seconded. Supervisor Nielsen stated she would support the motion but expressed hesitation regarding future permit fee increases, which she noted would be a separate decision.
- Vote: Passed unanimously.
Passed 5–0 · unanimous
Closed Session
- The board recessed to closed session to discuss existing litigation (Michelle Crane v. County of Santa Barbara) and anticipated litigation involving significant exposure to civil liability.
Closed Session Report
- The board reported that it met in closed session regarding two items: existing litigation (Crane v. County of Santa Barbara) and anticipated litigation involving significant civil exposure. The board stated that it took no reportable action on these items.
Adjournment
- The meeting was adjourned, with the next session scheduled for March 21 in Santa Barbara.