UnGovr Transcript
iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.0:00 – 0:0411 turns
All right, good morning everybody. It is actually July 1st and it's my honor to call to order this meeting of our Board of Supervisors meeting in Santa Barbara County. Madam Clerk please call
Roll call, called by Clerk of the Board
Show transcript
Okay, next up is approval of the minutes from our last meeting last week which is June 24th. May I have a motion please?
Nelson seconds.
All those in favor please say aye. Aye. Motion passes.
Next item of business is the County Executive Officer's Report.
Morning Madam Chair no report this week.
Okay, no report this week thank you Mr. Horton. Madame Clerk any announcements about today's agenda?
I do have a few announcements this morning. Grant funding to the Department of Social Services from SunCal Health for the Farmworker Resource Center. The addendum modifies the item's subject by replacing the term cash donation with grant funding, removes the forfeit vote required and updates recommendation A to read as follows A, approve and authorize the social services director or designee to execute the grant to receive 60,000 grant funding from SenCal Health for the Farmworker Resource Center.
Additionally, Administrative Item Number 37 is from the Sheriff Coroner's Office regarding a resolution authorizing the sheriff or his designee to enter into an agreement with California Department of Corrections and Rehabilitation for day reporting centers. The addendum adds Administrative Item Number 37 to the agenda. The changes included in the addendum have been posted and made available online to both the Board and the public. Since there are no requests to speak on either of these items, they may be added to the balance of the administrative agenda.
Additionally, we received a withdrawal request from the department on departmental item number five. Departmental item number five is from the planning and development department. It is a hearing to consider recommendations regarding an appeal of the County Planning Commission approval of the G&K Farm and K&G Flower Cannabis Processing Structure Design Review Project case numbers 25 APL 8 and 19 BAR 225 and this is in the first district again we received a request from the department to withdraw this item from today's agenda. And that additionally and lastly for the Board of Supervisors methods of public participation, and to provide public comment on general public comment or an item on the board's agenda please see page two of the agenda Individuals that would like to provide verbal public comment may do so via zoom by registering in advance via the link available on page 2.
If you have any questions please contact the clerk of the board's office at area code 805-568-2240 again that numbers 8 0 5 5 6 8 2 2 4 0 and that concludes my announcements this morning
Okay, thank you so much. And do we take a vote at D5 about that withdrawal? Is that correct?
Chair Kapsin, members of the board, we had one request to speak from the public on this item but on the actual appeal and not the withdrawal itself. So we can take that matter up now or we can wait until later in the afternoon.
Let's just do it now. I will entertain a motion to accept the withdrawal.
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So moved. Second.
All those in favor, please say aye. Aye. Motion carries. Okay great now Madam Clerk
the next item of business is any administrative items of the administrative agenda and any items that have been pulled. Supervisor Lavanino?
I'd like to pull A16 please.
Okay we're that's what already been pulled so that's great and I have already pulled A6
I don't need that anymore. You don't,
okay. A-25?
Yes please, parole call.
Okay great. Supervisor Hartman, A-32 and A-36. Any additionals? Okay so it looks like we just have A-16, A 25 and A 32 from the board is that correct?
Chair Capson members of the board that is correct and we have no requests to speak from the public on the administrative agenda
I'll move the balance of the agenda except for 16, 25 and 32. Second.
Excellent all those in favor please say aye. Aye. Motion passes now we get to move to resolutions to be presented Madam Clerk please read administrative item number one into the record
Chair Caps and members of the board, administrative item number one is sponsored by Supervisor Hartman. It is to adopt a resolution of accommodation honoring Detective Richard Miller upon his retirement from the Sheriff's Office after over 30 years of faithful and distinguished service to the citizens of Santa Barbara County. And joining us in person today we have Detective Richard Miller if you can please make your way to the podium And I will go ahead and read the resolution.
Whereas Richard Miller will be retiring from county service on Friday, July 4th 2025 having faithfully served the sheriff's office for over 30 years during which he served as a sheriff's corrections officer, deputy sheriff, senior deputy and detective And whereas Richard Miller started his career with Santa Barbara County on November 18th, 1992 as a reserve deputy. On April 24th, 1995 he became a corrections officer and promoted to deputy sheriff on December 18th, 1998.
During his 30 years of service, he has worked in various capacities which included field training officer, mobile field force, rural crime deputy, coroner detective, bomb squad technician and most recently high tech crimes detective. And whereas Richard Miller throughout his career provided the employees of the Sheriff's Office positive leadership and professionalism, allowing him to rise steadily through the organization attaining the rank of detective. And whereas Richard Miller provided the citizens of Santa Barbara County extraordinary professionalism and sensitive law enforcement services while dedicating his life to the pursuit of justice.
And whereas Richard Miller's knowledge, skills and experience contributed greatly to the overall professionalism and the goals of the Santa Barbara County Sheriff's Office as well as the objectives of the county. Now therefore it is hereby ordered and resolved that this Board of Supervisors commends Richard Miller for his faithful and distinguished service to the citizens of Santa Barbara County, congratulates him upon his retirement and wishes him and his wife Stephanie continued good health in many years of happiness past and adopted today.
Chair Caps and supervisors I really want to thank you for taking the time today. Give Rick this resolution recognizing many, many years of service. I do want to point out that he actually began serving before that. He served as a member of our armed forces for 10 years and attained the rank of a Staff Sergeant within the Air Force. It's there while at Vandenberg Air Force Base that he began serving our community in addition to that. He was a Reserve Deputy Sheriff which is where I first Met him.
Believe it or not, 30 years ago there were folks that actually volunteered their time to put on this uniform and go out into the community to serve our citizens in the community. And Rick was one of those individuals and I met him. I followed him into the reserves and then I met him again in 1995 when he came in and became a corrections officer within our jail And then I got to work with him again as he became a deputy sheriff and went out in the community. He has truly distinguished himself in many different roles, to include patrol field training officer, detective of both coroners and high-tech crimes.
And he's just absolutely distinguished himself within all of those roles. And he's actually one of those individuals who would put on a big green suit and walk toward explosives instead of away from them. And it's been a pleasure working with you, Rick. And this is a well-deserved retirement. Our community is better. Our organization is better. Our county is better because of all of your service.
And thank you for everything you've done.
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I just wanna thank the board for the resolution. Thank my family for coming and supporting me in this, and throughout all these endeavors that I've been through. It takes a unique branch of people to support somebody on the bomb squad so I have to give them all credit. Thanks to all my department members who are here supporting me for this. And again thank you for this opportunity it is very much appreciated. And I am very thankful for the time I was able to dedicate to supporting the community and being somebody that people could look to and help them out whenever they needed it.
So I have one last parting thought. One of my favorite slogan t-shirts says something to the effect of, I'm a bomb squad technician if you see me running follow me. Rick you're not running but I do intend to follow you thank you
I have not seen that shirt before, but we'll be on the lookout. Okay Madam Clerk next administrative item please.
Chair Kaps and members of the board, Administrative Item number two is sponsored by Supervisor Lee it is to adopt a resolution of accommodation honoring Patricia J Moore upon her retirement from the Alpha Resource Center and joining us in person today we have Patricia J Moore and I will go ahead and read the resolution Whereas with over 30 years of serving the County of Santa Barbara children and families through her work at Alpha Resource Center, Patricia J. Moore retired on June 30th 2025. And whereas the contribution she has made to the County of Santa Barbara are countless but include the development of Help Me Grow Santa Barbara County, the development of the CA Part C Early Start Program and serving as the representative on the CA Intricacy Coordinating Council on early intervention.
And whereas Patricia continues to be a strong advocate and champion of children with developmental challenges, through her work as one of the two California Center for Disease Control CDC Ambassadors for the ACT Early Learn and Signs Initiative which aims to help parents, caregivers monitor their children's development and recognize important milestones. And whereas as a mother of a special needs adult child, Patricia has used empathy, compassion and provided fierce advocacy for families navigating a complex system of care in the education system. And is recognized for her contributions to the well-being of children and families at Santa Barbara County while helping to improve the health and opportunities for thousands of children. Now, therefore be it hereby ordered and resolved that this Board of Supervisors does acknowledge and congratulate Patricia J.
Moore upon her retirement from Alpha Resource Center and Help Me Grow Santa Barbara County passed and adopted today.
Good morning. I want to say it took a lot to get Patty here, she wanted to just quietly sneak away from over 30 years worth of work in this county and state and we're so happy for her to have a little break but I only gave her a few weeks to settle in before I hire about her back as some kind of consultant But I also wanted to share that we do have a certificate of recognition from Assemblymember Greg Hart and Senator Monique Lamone's office, recognizing her for her outstanding leadership and over 30 years of advocacy to improve early identification of developmental delays. support families and establish help me grow in Santa Barbara County.
And congratulations upon her retirement in honor of her lasting contributions to the children and families. So thank you, Patty. Thank you.
Little did I know 39 years ago when we brought home a baby with Down syndrome that it would launch a new journey for our entire family and a career that I had no plans on ever. It's been an amazing 35 years working with families, working with families but learning from families And so much has been, anything that I might have been able to do in the last few years has been with thanks to the colleagues and the partners here that share that vision like you for all children and families here in Santa Barbara County. So I'm very honored and I hope I can learn how to get this retirement thing down.
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Thank you so much. Madam Clerk, please read the next administrative item.
Chair Caps and members of the board, administrative item number three is sponsored by Supervisor Caps. It is to adopt a resolution of accommodation honoring first five Santa Barbara County Children and Families Commission as the July 2025 employees of the month for Santa Barbara County. And joining us to receive this resolution today is Sarah Gonzalez, Liliana Martinez, Brianna Dunn, Kaitlyn Kenner, Alexis Brenner along with Wendy Sims-Moten and Michelle Robertson.
And I will go ahead and read the resolution. Whereas the first five SBC staff act as community and content experts in planning for implementation of and measurement of the current conditions of children, families and early care professionals by providing information technical assistance capacity building opportunities and data for decision making for those that can influence and enact change.
And whereas the first five SBC staff have exhibited dedication innovation Efficiency and determination in securing strong infrastructures of support for a wide range of sectors that increase the equitable access to prevention and intervention efforts, allowing children to grow and thrive from birth through kindergarten. And whereas interdependence and commitment to each other are crucial elements that allow the strength of this small but mighty team to continue to exceed expectations and provide quality level of support for others, and to see all the work through a successful completion as public servants.
And whereas the senior leadership of First 5 SBC would like to acknowledge, appreciate and thank Sarah Gonzales, Liliana Martinez, Brianna Dunn, Kaitlyn Kenner and Alexis Brenner for their commitment and work for the children families in early childhood workforce of Santa Barbara County. Now therefore be it hereby ordered and resolved that this Board of Supervisors does hereby recognize the first five Santa Barbara County Children and Families Commission staff as the employees of the month for July 2025 passed and adopted today.
Barbara County Board of Supervisors Meeting, Page It says, as each goose flaps its wings it creates an uplift for the birds following by flying in a V formation. The whole flock adds 71% more flying range than if each bird flew alone. The lesson is people who share common direction and sense of community can get where they are going quicker and easier because they are traveling on the thrust of one another.
And this is absolutely what happens. This team is so small but there's a lot of heavy lifting there that you wouldn't think It's five, six, seven people can do and I just want to appreciate that they work together as a team. And all the things that you see in the front is because they've worked so well in the back and we're always norming and stomping from time to time but working together as team. So very much proud of them and continue to be the leader for each of them.
Good morning Chair Kaps and members of the board. My name is Brianna Dunn, I'm the Communications and Policy Manager for First 5. On behalf of Sarah, Liliana, Caitlin, Lexi, and myself thank you so much for this incredible honor we are truly humbled to be recognized as employees of the month At First 5 Santa Barbara County, we are deeply committed to supporting children prenatal through five, their families and the professionals who serve them.
To know that our work is seen and appreciated means more than we can say. And being recognized as a team makes it that much more special, as it reflects the values we hold dear—collaboration, commitment and trust. Each of us brings something unique to this work. Some of us are big picture thinkers, others keep projects on track and some have an eye for every little detail.
It's through that mix of strengths and collective effort that we're able to build and nurture systems that help young children and family thrive. Whether we're working behind the scenes or out in the community, we lean on one another, push each other to grow and lift each other up. This recognition truly belongs to all of us, including our community partners who walk alongside us every step of the way.
We also want to thank our leadership and everyone who continues to create a workplace culture where we feel empowered, supported and inspired to give our best. It's not just about the work it's also about the heart we put into it and the people who we get to do it with. Thank you again for this meaningful recognition. We look forward to continuing this work together and in the county because every child and family deserves the opportunity to thrive. Thank you
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I actually need to give you all each one of these. And while Supervisor Nelson's doing that, I just want to add. I love that you all got this honor of Employees of the Month as a group because what a team you are, what a small but mighty team and when I was looking at you all, I just think about the number of children that you serve, the number of organizations that you lift up and really the prevention that goes into the work And that old phrase, an ounce of prevention is worth a pound of cure and the multiplier effect of this small team. So I think it's really poignant that instead of just one employee of the month we have a group, a team because of that collective effort. So congratulations to all of you. I'm glad you each have a resolution.
And I really, I think we feel such gratitude for the work that you do every day. Thank you. Okay. Well that is it for the resolutions for today so now we will move to the items pulled by the board.
Chair Kaps and members of the Board, Administrative Item number 16 is from the County Executive Office. It is to consider recommendations regarding a support position for battery energy storage systems BESS legislation Assembly Bill AB 1285 and Senate Bill SB 283
I pulled that yeah, thank you madam chair. And just curious if anybody wants to talk about it from the I mean I tried to read the both bills and it always gives me a little pause to support these because I know they could be amended later but if what I was reading is correct and want to get some feedback if it just seemed like And I know I've got a lot of people in my district that are really concerned about these. So, I just want to make sure before I support that but that is the gist of the bill.
Sure well I can speak unless we want to speak to the substance just process wise we were tracking the five and then it got reduced to the two from the process in the legislature but Director Armis do you want to speak to the substance?
Thank you Chair Kaps and Supervisors, Jesus Armas from the Community Services Department. The Board has discussed as has the Legislative Program Committee a variety of bills that have been introduced to deal with this very important and sensitive topic It's our understanding that the objective here is to try to create some consistency and some clarity on these regulations because there are efforts across the state to approach this in different ways.
Given that safety is a major consideration, there is an objective here of trying to have the fire marshal play a critical role in developing some regulations. What is noteworthy is some of the other legislative initiatives have not been able to pass their respective clearances and consequently these are the ones that have survived. We think they merit support, we think they help offer clarity and will help facilitate appropriate measures across not only our county but throughout the state.
Thank you and I appreciate the Legislative Committee working on this and getting this thing narrowed down as we continue to move forward so appreciate it I'll move A16.
I'll second. I
just have a quick question about it as well, and while you're up there Mr. Amos on Senate Bill 823, Laird's bill, there is a requirement for meeting and conferring with the local fire department and I want to make sure that's progress right so right now there's no need to meet with the local fire? Is that my understanding?
Well, I think anytime you're entertaining modifications to the fire code which and related building standard codes this becomes critical. And so we are Deputy Fire Marshal Fred Tam has been very active in paying attention to this issue.
Well, I guess I just want to make sure that this bill actually increases the oversight, the local oversight. That's what I'm after is more local control on these projects.
It's my understanding that by the development of the standards there'll be an opportunity for us, the locals too And I guess the other question was there's this meet and confer with the fire, not a requirement for approval from fire.
And I just try to understand that nuance there because I think my preference would be actually approval from my fire marshal. So trying to understand if this is a step forward or step backwards there.
That's a good question, if you don't mind we'll take a closer look at that and get back to you.
Okay, I am trying to read between the lines that this is a step forward. So I'll go ahead and also move to support today but with some concern reservation as these things change my overall goal with this is to make sure that we have local control especially as new projects forward especially as we as a county build projects you know I know we were talking about battery storage out there at the At the jail.
And you know, I've gotten some feedback from our local agricultural community concern not only because of the safety of the workers out there but also because the GL sits on top of a very important aquifer and in case of some type emergency they want to make sure that the protections are in place to make sure that doesn't impact our groundwater system which is crucial to the Santa Maria Valley as well as the agriculture community as a whole. So just want to add that to the conversation as you guys are wrestling with that but I'll go ahead and also support this motion when time comes.
Supervisor
Herman. I just wanted to add that there was just an announcement this morning about solid-state batteries that last twice as long and are far less fire prone so the technology is changing every day and improving
great okay we have a motion in a second I will then call all those in favor I think you just wanted a roll call vote on that? Yes, please. Madam Clerk roll call vote on A25 please.
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Chair Kaps and members of the board administrative item number 25 is from the Public Works Department it is to consider recommendations regarding the adoption second reading of our proposed fee ordinance for Public Works Transportation Division development review and plan check review services And if we could just get a motion and a second to approve that item.
Move approval.
Roll-call vote Passed 4–1 Move approval. Second.
Show transcript
Motion passes 4-1
Okay thank you then next and our final one is A32
I believe that's Supervisor Hartman that pulled that. Yes, Chair Kaps and members of the Board. Administrative item number 32 is from the Social Services Department it is to consider recommendations regarding a $60,000 cash donation to the Department of Social Services from SenCal Health for the Farmworker Resource Center and there is a four-fifths vote required on this item
And in the board letter it says that this was an unanticipated and generous grant. So Director Nielsen, would you like to talk about what it'll be used for?
Supervisor Hartman through the chair I'll have our executive director of the Workforce Development Board speak to that because he will do a much more, Louise come up here, he'll do a much more eloquent job
Good morning Supervisor Harmon and through the chair. So this is the second year that we've received this donation from CENTCOL, and it primarily helps us really pay for our staffing costs as it relates to us continuing the work that we've been doing since last year with a farm worker resource center so primarily covers salaries benefits of our staff But also it supports us paying for the rental of venues whenever we have events. And also, we've been able to provide hot meals during those events especially when we have our events with the Mexican Consulate a lot of times our farm workers are there four or five hours per day and a lot of times they bring their children with them so With this donation we've been able to pay for the rental, for our staff's time and also for those hot meals.
Since a lot of our state and federal funds that we also get support this work does not allow for that kind of expenditures.
Terrific! And the farmworker resource Center is really important to all of us because it does reach out to farm workers who otherwise may not have good connections to the various services that they're entitled to. So this program is fabulous. Thank you for your leadership. It's turned out, I think as good or better than we ever hoped so thank you. Wonderful.
OK. Sue Rosaleno. I'll take a motion then to accept this donation.
So moved.
Second.
All those in favor please say aye. Aye. Motion carries and with that concludes our administrative agenda and we will move on when you're ready Madam Clerk to general public comment for those who wish to speak on items that are not part of our agenda today
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Chair Caps and members of the board, we have no request to speak on general public comment today.
All right moving right along then. We'll move to our departmental agenda item. Item D1.
Chair Caps and members of the board departmental item number one is from the Agricultural Commissioner and Weights & Measures Department it is a hearing to consider recommendations regarding the annual Santa Barbara County crop and livestock report for 2024
Mr. Chang. Good morning.
Good morning Chair Caps, members of the board. CEO Assistant Horton County Council Van Meulen County Staff Members of the public Jose Chang Agricultural Commissioner for Santa Barbara County with me today I have Assistant Agricultural Commissioner Laurie Martin and Deputy Agricultural Commissioner Matthew Mayton who are going to be helping me present the 2024 crop and livestock report Before we do that, I just want to take a moment to express my sincere appreciation to the agricultural community for their continued cooperation and for providing the essential data that make this report possible.
I also want to acknowledge the outstanding efforts of our department staff with special thanks to Matthew Mayton Mel Graham and our Crop and Livestock Report team for their commitment to compiling, analyzing and reviewing this important information. I will now turn it over to Deputy Agricultural Commissioner Matthew Maiden.
Good morning, everyone. Thanks for today. This report was developed in accordance with California Food and Agriculture code 2 to 7, 2, 2 to 7, 9. The first publication of this report was in 1916. And since 1916, our office has produced an annual crop report. The total agricultural This growth was influenced by several factors including harvested acreage, higher per acre yields and unit pricing and advances in development of newer varieties that show more resistance to pests and vegetable crops.
It is important to note that the values presented in this report reflect gross values of agricultural commodities And does not consider costs associated with labor, planting irrigation distribution among other production activities. Thank you. Good morning, everyone strawberries remain the top commodity in Santa Barbara County in terms of gross production value since 2002 strawberries have consistently held the number one spot serving as the cornerstone of the county's agricultural economy.
New she products out steady at the number 2 spot in 2024. Broccoli moved up to the number 3 rising from 4th place last Blackberry saw the most significant jump moving from 9th place in 2023 to 5th in 2024. Livestock continues to rank among our top 10 commodities maintaining its position at the number 10 spot. In 2024, vegetable farmers experienced a better growing season than the year before. However it still costs more to grow crops and other ongoing challenges meant that vegetable prices went up.
Cooler weather and improved plant varieties helped reduce damage from many pests. This category saw a 2.1% increase in total production value. Santa Barbara County's fruit and nut crops led by strawberries saw growth in both the amount of land harvested and overall value. This category made up 53% of the county's total agricultural production value, largely thanks to strawberries remaining the top crop.
Even though farmers dealt with rising production costs and lower market prices in this category, the total value of the strawberry crop still increased. This is due to planting more acres and getting better yields per acre. Avocados and blackberries also had higher total values in 2024. In 2024, wine grape production in Santa Barbara County decreased by 28% due to lower yields.
There was still strong demand for grapes grown in Santa Barbara County and the quality of the grapes that were harvested was high. Prices for local grapes were strong compared to other wine producing regions. However because fewer grapes were harvested, the total value of the crop still declined. Chardonnay, Pinot Noir and Sauvignon Blanc were the three most harvested varieties with the highest gross value.
Santa Barbara County's flower and nursery industry remains strong thanks to a steady market demand and consistent production. We are a region known for a diverse and well-established horticultural industry, ranging from specialty orchid and rose growers to large scale wholesale nurseries. In 2024 we saw an increase in production for both cut flowers and nursery products along with a slight rise in overall production value.
In field and seed crops, the rainy season led to more robust pasture and rangeland recovery after so many years of drought. More accurate rangeland values contributed to a large increase in total overall value for field and seed crops. We saw a similar positive impact in the livestock industry as the rainy season allowed ranchers to retain more pasture supporting herd health and productivity. Combined with higher sales and increased demand for beef, this resulted in a rise in livestock production values.
In contrast, apiary production saw a decline due to fewer bee registrations and a decrease in overall colony values. I will now turn the rest of the presentation over to Assistant Commissioner Lottie Martin.
Thank you, Matt. Many of the agricultural commodities grown in Santa Barbara County are exported internationally to 34 countries with Canada and Mexico being our top trade partners. In 2024 we shipped over 51,000 tons or 102 million pounds of food abroad. Please note that the export data in this report only includes commodities that require a phytosanitary certificate and does not account for unrestricted exports.
Our producers continue to meet the need for organic commodities with an increase in organic farms compared to last year. In 2024 we had 205 registered organic farms. Strawberries remain our top organic commodity accounting for approximately 30% of the total strawberry acreage in Santa Barbara County grown for organic markets Santa Barbara County hosts several farmers markets, including a new market in Los Alamos started July 12th. Over 100 certified producers sell at these markets as well as in neighboring counties The Agricultural Commissioner's Office is dedicated to enhancing and safeguarding agriculture and natural resources in Santa Barbara County. Our pest exclusion program supports this mission by conducting inspections at mail carriers, nursery retailers and throughout the community to prevent introduction of invasive pests.
In 2024, we identified 182 invasive pests and issued 133 notices of rejection resulting in the exclusion or destruction of plant soil and fruit materials to protect local agriculture and natural resources from potential harm. Here is a video relating to pest exclusion with one of our staff.
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A lot of plants just came in right now and as part of the Agriculture Commissioner's Office, this is what we do. We inspect plants that come in from other states or countries and before they go into the market, we inspect them here for pests that could be detrimental to the agriculture industry but more importantly to you, the homeowners. Beautiful ferns right?
I am looking for weeds. We definitely don't want weeds coming in, right? Why? Can you imagine working with all these beautiful plants and then you go plant them into your beautiful garden, right?
This is the second year that we have included a Spanish version of the 2024 Crop and Livestock Report. Our crop and livestock report highlights some of our collaboration and partnerships. To receive free pest identification assistance in Santa Barbara County, our department collaborates with the UC Cooperative Extension Master Gardeners. The public can submit a photo or sample of the pest including details about its location and any plant damage via email or dropping it by any of our department offices.
The UC Cooperative Extension bridges university research with practical solutions to support Santa Barbara County's agriculture and communities in addressing challenges such as extreme weather and increasing pest pressures. Through hands-on programs, workshops, and expert guidance they provide direct assistance on topics ranging from pest management to crop adaptation.
It is our staff's recommendation that the Board of Supervisors take the following actions. To receive and file the Santa Barbara County Crop and Livestock Report for the year 2024, and to find the proposed action does not constitute a project within the meeting of CEQA. Thank you again and we are pleased to answer any questions you may have.
Thank you so much for this report. Any questions for the board? Supervisor Hartman.
Well overall it looks positive but for wine grapes a 28% decline is that something that is just weather related or could you expound a bit on why that's the case and what we can expect going forward?
Yeah Thank you, Mr. Chairman and members of the Board of Supervisors. reduced yield in some of the vineyards and we saw a 27% decrease in harvest yield last year. And so that led to the decline of 28% in gross value. Of course, you know there is a lot demand right now for wine consumption and that is something else that we are aware of but this is also happening statewide it was not unique to Santa Barbara County in a statewide, in fact we learned that the wine grape industry in California hadn't seen this decline you know in 20 years. And so moving forward you know it appears from my perspective and my experience that this is going through a correction period and it's just gonna take some time before it gets better but I have seen some of these cycles And so I think, you know, it's just going through a cycle right now.
But I think at some point we're going to get out of these and hopefully many of the fields that are being taken out of production they will go back to wine grapes.
And what's interesting is blackberries have gone up and fruits and nuts, which are my favorite foods. So that's exciting to see I just wanted to say the art and the layout in the Spanish version. I think this is an extremely well done report and really represents your department in our county extremely well so thank you.
Thank you Supervisor Harbin.
Supervisor Nelson
Yes, thank you Chair Kaps. Well congratulations to you and the entire county to hit $2 billion is truly historic moment in Santa Barbara County agriculture and something to really celebrate. I mean this doesn't happen everywhere. I really appreciate all the hard work that the Ag Commissioner's office does to protect our agricultural industry. We know that with state budgets, you know contracting there's challenges there and I've mentioned during the budget hearings and i'll just take this opportunity mention again that we need to make sure that we keep this department whole especially in the ways of pest detection and prevention it is crucial to the future of our economy in Santa Barbara County that we protect Really on the foundation of what Santa Barbara County is all about.
A couple of highlights that I wanted to point out obviously strawberries, you know huge winners there for us and they continue to be. You know even head lettuce if you actually bring your leaf and your head together it were actually lettuces are number two crop and I think that a lot of people don't fully understand What a big deal we are, what we do in Santa Barbara County and why we're so different than other places. Places like Salinas, they end up having rain during most of the winter and they have to shut down. Santa Barbara County is really a year-round agricultural community because of our moderate climate.
And that also impacts not only our production but also impacts our workforce. You know where you have a lot of areas that deal with a lot of migrant labor, a lot of our labor is here year-round in part because of what our weather and so it presents some interesting challenges but also some interesting opportunities that I'm really proud of I really want to encourage my colleagues and I want to encourage department heads and people in the community to participate in our Farm Day program that happens in September.
It's really an opportunity to kind of fully understand the depth and breadth of what we do in our county up in, it's usually been the Santa Maria Valley, I think we're going to extend into Santa Ynez as well this year and into the South Coast but really fully getting your arms around it you know You know, for example you know I have learned even though I should have known because it's a family member. We're the largest provider of cauliflower in the whole entire country from one of our farms here in San Barbara County and you just don't think about that but it's true. On any given day over half of the lettuce in the entire United States is coming out of Santa Maria Valley And you just don't think about that, you know. I mean some days it's some other places sometimes it's Yuma, Arizona but we are a big deal and it's in part because of this board's commitment to agriculture as well as our Ag Commissioner's office and most importantly it's our farmers and our landowners and our workers that make this possible.
This is really an opportunity to celebrate. I'm glad you guys bring this to the board for to share and look forward You know, digging into these numbers and bragging about Santa Barbara County agriculture over the next year. Thank you.
Chair Capps if I may?
Yeah please.
I just want to say that we are actually at the 11th county in California with a gross production value of $2 billion so there are only 11 counties in California with that gross value of two billion dollars and we're one of them now
Supervisor Lee.
Yeah, great report. I totally concur with Supervisor Nelson about it. This is a question about enforcement. How do you ensure that the farmers market the vendors are selling the fruit that they grow and not just going to Costco and reselling those
Yeah, Chair Caps through the Supervisor Lee through the chair. Great question you know thank you very much for that question it is something that you know for the last couple of years we have actually ramped up our enforcement presence at the farmers markets not only here but we also you know hear from our neighboring counties that our farmers are going to their markets and oftentimes you know it's not that they are selling One of the issues is that oftentimes they sell what they are not growing. And, of course, you know that creates integrity to the farmers markets. So our job is to ensure that what they are selling at those markets, they are actually growing them. And so we go back to the growing grounds to do an inspection and verify that they are growing, you know, what they sell at these markets.
And so what we're finding is that oftentimes it is just a paper issue, that they forgot to come to the office and add those commodities that they are growing. And so it's not that our farmers are not complying with the regulations. Oftentimes it is just oversight from their part. And so this year we actually issued For the first time, a memo to all of our what we call certified producers, all the small farmers who sell at these farmer's markets outlining all of the different issues that we're seeing at the farmers' markets. And so these are some steps that we have taken in the last couple years and we continue to work with them We actually offer a meeting class to all of them last year, including the farmers market managers just to go over you know the requirements and the regulations.
And this is the way that our office it's making sure that the regulations are being enforced.
Got it, and just follow up question. For grapes do you see tactics used by growers to increase the sugar level in the grapes so that they can sell at a higher price? For example, get 50 pounds of sugar dumped on the field. Do you see those tactics or is this something that you enforce to make sure we get the best possible quality?
Yeah, I don't I'm not aware of that tactics as you're calling them. This is the first time that I hear that to you guys. Yeah, so I
something to follow up on because
yeah maybe I can follow up on that and then find out. But typically you know they there is a way to measure the sugar level at the end of the season in but I will definitely follow-up on your questions rightfully. Thank you.
Supervisor Lavanino.
Thank You Madam Chair and I want to assure Supervisor Hartman I'm doing everything to keep the wine industry Okay, it's also my favorite food so we're doing our part. I just wanted to appreciate all the work that your department does when it comes to I want to make sure you're getting what you pay for. And so that's something really important and also, I have no idea if I'm getting half a gallon, three quarters of a gallon or a gallon but that's the Ag Department is in there making sure that happens. So really appreciate that and then I probably you know figured everybody knows that I'm going to say this anyway so I might as well do it is that I noticed cannabis at 313 million dollars which would be Broccoli, cauliflower, lettuce and almost wine grapes all put together so on 480 acres.
So for gross value I know has a lot of other things that we can talk about but for the small footprint it is it really creates a lot of jobs and a lot of economic impact so appreciate that thank you
Thank you. Supervisor Hartman, another
question? Just a comment as I look at exports it kind of jumped out at me that we export by a margin Mexico is our biggest. I always thought it was the other way so that were so I just found that worth noting.
Can I ask on that question too? I noticed there's nothing in South America and I was just curious if Why why stuff doesn't head that way if I mean it's all going to Mexico? Is anybody have that idea like why we don't export there or I noticed like United Kingdom is a big blank as well.
Yeah,
it's just where they develop customers I suppose.
Supervisor Nelson through the Chair. Sorry, Bavanino. The exports that are noted here are only exports that require a phytosanitary certificate and so the countries you're seeing are the ones that have more stringent requirements and so they require paperwork and those are the ones that we are tracking. We do export to several other countries but we have no ability to track them.
Great thank you
0:52 – 0:5820 turns
Okay I thank you. I just had two questions for you before we, I do believe we have one request to ask a question from the public. Just I know you do have to do these reports and track and I agree with Supervisor Harmon that it's just beautifully done so congratulations because I know how much work goes into the production and writing and getting all of the information so thank you for presenting it so well and I look forward to sharing this with constituents. My question is when you do all this work, what's kind of the takeaway for you? What's the light bulb moment where you think okay wow I didn't really expect this or as a department we really need to do better this way or this was unexpected we're gonna shift in this regard. What's the learning moment for you all as a department?
Thank you Chair Kaps for the question. And so at least for me and maybe Matt and Laurie might have something different, it's usually in spite of many challenges that the agricultural industry faces it typically is very resilient. And so that's one of the things that I, you know take away every time that I see the numbers. And then of course you know for me it is seeing the movement of dust and commodities and then for us it is what we can do better in particular keeping pests and diseases out of the county. Sure. And all of us take that very seriously because If we don't have them in the first place, then farmers and others don't have to deal with pest management and using some of the tools that perhaps you know we want them to use a little less of them.
I see.
So that's usually for me. And then seeing the values, you saw blackberries, how it jumped to number five now. And cauliflower a couple years ago was number two. And so for me seeing that movement is usually very interesting And as Supervisor Nelson mentioned, letters is also one of our biggest industries. We divide them between headletters and leafletters but if you were to combine both of them It will definitely be at the top. So that's, you know, usually for me that's what I see and then the pests and diseases we learned what pests and diseases were impacting the farmers most in some of the sustainable pest management practices that they utilize now are also changing, and oftentimes that is a reflection on the gross production value because you see that the value goes up when they have to deal with less pest pressure.
So I appreciate that. I mean, the numbers are staggering. So you're saying that if you all do your job right, that keeps pests just out of the county period which means farmers can do their job and continue to produce at these incredible numbers?
Correct. And I also think about the farm workers. Right, that was my second
question. In
all of the work that they do and truly from my perspective they are the backbone of the industry. Sure. Because this is just about the numbers But, you know, we tried to find a way to also highlight the contribution of all our farm workers in the county. And even for our office, you know, we're always educating them on how to protect themselves when they are working in the field and so that's also another highlight for me every year, farm workers.
Well, that was my second question. So thank you for leading into that because you were hired and you've done such an exemplary job of really being a trusted bridge between farm workers and the industry and farmers. And I just wanted to ask beyond the report beyond 2024 how are things going with farm workers? It's a very stressful time. How are people feeling? How are workers doing?
Help us understand a bit from on the ground.
Yeah, thank you Supervisor Karp. You know of course this is it has been very difficult for a lot of farm worker families and but I do know that the industry is working hard to educate them on the things that they need to know and be aware of when it comes to the current situation we are living in our community And I think a lot of that education is paying off because the rate of absenteeism in farms in the last couple of weeks, it has been typically normal absenteeism rate.
It has been
typical
absenteeism?
Correct.
Oh interesting.
Except in Ventura County when we heard about some of these things going on there the following week it was 50% in absenteesim. Sure. For us, you know I did reach out to when that was happening to the industry and just to find out how the farm workers were doing. And I was explained at the rate of absenteeism a couple weeks ago it was on We had a lot of graduations.
And so they were attending graduations and that's why they were skipping, you know, hopefully work but I'm sure with permission. That's
like that's a good reason to be absent celebrating. OK thank you and I appreciate it. I just want to say if there's anything you think we as a board should know during this challenging time I hope you would make sure to flag. So thank you.
Thank you
Madam Clerk. I know that there is one request to speak
Mr. Caps and members of the board we are going to Santa Maria with Claire Wineman Claire.
0:58 – 1:0311 turns
Hi, good morning. My name is Claire Wyman. I'm the president of the Grower Shipper Association of Santa Barbara and San Luis Obispo counties. I'd like to thank everyone for their thoughtful questions and comments and join in celebrating the diversity and contributions of agriculture in Santa Barbara County. We'd also like to take this opportunity to remind everyone that this is one piece of information but it doesn't include the cost of growing which have significantly increased in recent years and there are some significant challenges to making ends meet.
We are glad to see some recovery in quantity relative to the significant storm damage events of 2023 and do hope for stronger pricing in the future. We look forward to continuing to work with the Ag Commissioner's Office and Santa Barbara County on issues at the local level, transportation infrastructure, housing, land use issues, and many others to maintain a vibrant agricultural community and the many local jobs and businesses that it supports.
Thank you. And that concludes public comment on this item.
Thank you. Any other comments before we vote? Supervisor
Nielsen? Yeah, thank you I just wanted to maybe highlight what Ms. Maloney was mentioning there about the cost of production because Many of these farmers do lose money. And so you see $2 billion and everybody thinks well that's, you know, $2 billion of net revenue. That's gross revenue and I think people need to understand that it does help our economy as a whole but it also sometimes gets us into the habit of going thinking that that's some place that has a lot of excess cash there that we might be going after or that they're They may be able to handle more pressure from us from a governmental role. So I think we need to make sure that we're being cautious there, that we are having more and more small farms going out of business in our county during this period time as well.
There's more consolidation. And so those are also some of those concerns in this industry as we push forward higher numbers but doesn't necessarily mean a fully healthy economy out there. So, I just think that caution is well heeded Growers, shippers and something that I know that I'm constantly monitoring and think we need to as well. Thanks
Supervisor
Hartman. Supervisor Nelson raises a really good point and that is part of the character of agriculture in Santa Barbara County is its diversity and the many small farms it's not like the Central Valley corporate agriculture do we track that consolidation of small farms? Is there any way to know what's happening in terms of ownership I know we've gone from a lot of farmers who farm their own land, now people are leasing.
They own some land but they're leasing and that gives them more opportunity to diversify their crops but how do we understand that?
Supervisor Harmon through the chair, the way that we do track that is through the USDA census and that happens every four years. And so the last time that it happened was a couple of years ago in 2022. So that is actually the only way that I know that it gets tracked you know the number of small farms getting consolidated for us the way that we do track it And the way that we follow, you know, the small farmers.
All of the ones that sell at the farmer's markets all of them are a small farmers and typically they're minority farmers too and many of them are women too. And so that's one way. So in our county we have over 100, you know, at least just for farmers markets as small farmers but then when you look at strawberries and other crops The last time that I look at that data, about 50% of all the farms in our county have less than 50 acres.
And so they don't have a lot of acres but again going back to your question it's the census USDA census how we definitely follow small farmers.
Okay with that we I will entertain a motion for recommended actions A and B.
I'll move staff recommendations.
I'll second.
All those in favor please say aye. Aye. Motion carries thank you so much And with that, we will move to departmental item number two which is 3C REN 2024 impact report.
1:03 – 1:204 turns
Chair Kaps and members of the board, departmental item number two is from the Community Services Department. It is a hearing to consider recommendations regarding Tri-County Regional Energy Network 3C REN 2024 Impact Report.
Here we go. Setting up the PowerPoint presentation. Chair Caps, members of the board, Jesus Armas with Community Services Department. Today we have a couple of noteworthy reports to share with you. They intend to reflect on the progress we're making in our county addressing some very important sustainability issues and contain some important information that really underscore the commitment this county has made to carry out both the spirit and the intent of the Climate Action Plan So this morning we're going to invite Garrett Wong, our program manager, to introduce the 3C REN report followed by Lori Levetis who's going to review it in more detail. So Garrett if you would please?
Good morning. My name is Garrett Wong and I'm the Sustainability Division Manager, and today we're presenting you with the annual impact report from the Tri-County Regional Energy Network otherwise known as 3CREN. There are no other actions other than to receive and file this report and then to determine that this action is not subject to CEQA. Today's presentation is followed and complemented by a presentation from the Central Coast Community Energy, or also known as 3CE.
Building energy consumption represents approximately 38% of total community-wide emissions. In order to reduce emissions from our buildings and meet our Climate Action Plan goals we need to do two things. Reduce fossil fuel natural gas use, and increase our clean sources of electricity generation. And this county has taken significant steps towards these objectives by launching 3C-REN and by joining 3CE.
3C REN is a regional energy network. We offer energy efficiency programs, industry trainings, and are funded by the California Public Utilities Commission. These include incentives for residents, multifamily properties, and businesses. 3CE is the community choice energy program for the entire Central Coast. They buy clean and renewable electricity for residential and non-residential customers.
They also offer programs to promote electrification, including rebates for commercials, I'm sorry, customers both residential and customers. 3C-REN and 3CE coordinate closely to ensure that customers are able to leverage multiple sources of funding to achieve low or no cost energy improvements. To speak in greater detail about 3C REN's history, structure and highlights I'd like to introduce Lori LaRiva. Lori is a staff member in our sustainability division and she serves as the Energy Program Manager for 3C REN's single family and multifamily home energy saving programs.
And she supports our county clean commute program as well. Prior to joining the county, Lori led transportation demand management programs at SBCAC for 14 years. Take it away, Lori.
Thank you, Garrett. Good morning Chair Kaps and members of the board. My name is Lori Lariva as Garrett mentioned and I'm an energy program manager on our sustainability team and for 3C REN. 3C REN was established to deliver energy saving programs and industry trainings that help reduce energy use, strengthen local job markets, support efforts to achieve local climate goals and serve hard-to-reach and underserved communities.
RENs, like ours, are intended to fill gaps where IOUs, investor-owned utilities cannot or will not serve customers. Therefore we focus on serving hard to reach customers including rural communities, customers with English as a second language, renters, multifamily properties, low and middle income households, small medium sized businesses and tribes. As with other regional energy networks across California, 3CRN uses funding from the California Public Utilities Commission.
We bring ratepayer dollars back to our region and invest them in our community and our local economy. The revenue and expenses associated with 3C-REN activities are already budgeted, and there is no anticipated impact on the general fund. The county receives funding for all staff time, supplies, and expenses associated with 3C REN. All 3C REN budgets and expenses are reviewed, authorized, and improved by the CPUC to which 3C REN reports directly.
The Tri-County Regional Energy Network is a collaboration between the counties of San Luis Obispo, Santa Barbara and Ventura. On the right of this slide you can see a graphic of how 3C REN is structured. We have leadership team that includes one member from each county and makes high level decisions about the REN. Each county leads at least two programs in 3C REN's portfolio based on existing expertise strengths and interest.
Each program has a program team, which includes one representative from each member county. And Ventura County is 3CRN's administrative lead responsible for contracting, budgeting and reporting to and liaising with the CPUC. Our three counties have had a longstanding collaboration that goes back to 2013 when we started jointly offering a regional energy efficiency program called Empower Central Coast with funding from the investor-owned utilities.
In 2016, the Board of Supervisors approved pursuing participation in a REN to obtain funding from the CPUC and 3CREN submitted a $50 million business plan. In 2018, the CPUC officially approved the formation of 3C-REN and in 2019 we launched our first three programs offering residential incentives, workforce education and training, and codes and standards support.
Based on the success of the initial programs, 3CRN submitted a new business plan in 2022 requesting $155 million to continue existing programs and launch three new programs for 2024 through 2031. This was approved in 2023 and three new programs were launched toward the end of last year to provide commercial incentives, agriculture energy assistance, and energy assurance services.
So in total, 3CUN has secured $205 million to invest in the tri-counties for staff, workforce training and financial incentives. And by the end of 2031 roughly 15 million of that will have come directly to the county to cover staffing and implementation costs. We have a proven track record of success that's been recognized by the CPUC. This has enabled us to expand our programs and impact across the whole tri-county region.
3SARUN offers seven programs, and these are focused around three services. Incentives, training and technical assistance. Under incentives we offer home energy saving programs for single family homes and multifamily properties to receive incentives for home energy upgrades. There's also a commercial energy savings program which just launched in December for local businesses to receive incentives for upgrades.
Under training, we offer a building performance training program for industry professionals and tradespeople to enhance their knowledge and skills to design and deliver energy efficient buildings and retrofits. The Energy Code Connect Program helps building officials and contractors navigate the state's energy code and build more energy efficient buildings.
Newly launched in 2024 are two technical assistance programs, agriculture energy solutions for farmers with high energy consumption to receive free technical assistance to support efficiency improvements and energy assurance services for critical facilities to receive energy audits to meet the needs of their facility and the community during emergencies or power outages.
Across the Tri-County region last year, 3CRN hosted training events that served 2,438 attendees. We reached 1,835 homes with energy saving upgrades. We served 142 Title 24 code inquiries by phone, email and on site And we helped 22% of single family projects and 38% of multifamily achieve incentive stacking with other programs such as 3CE. In these final slides, I'll dive deeper into six of our programs.
The Single-Family Home Energy Savings Program offers incentives to residents and contractors. These are for energy upgrades that have measurable, that is metered energy savings. And incentives are highest for hard to reach single family households. In 2024 there were over 50 contractors participating in the program more than double from the previous year The program served 516 homes across the Tri-County region, which was a 62% increase from the previous year.
And projects ranged from electric heat pump water heaters to energy efficient pool pumps. In Santa Barbara County specifically last year, 62 single family projects were completed reducing natural gas use by 7400 therms and 18 tons of carbon emissions. This year, in only six months, Santa Barbara County has seen an increase from 62 projects last year to what looks to be over 200 this year.
Nearly all of them are in hard-to-reach communities in Guadalupe and Santa Maria. These are for customers who are low income as reflected by discounted utility rates and or English is not their primary language. For these projects, our incentives are stacked with other rebates such as those from Central Coast Community Energy to enable high efficiency upgrades to happen at no cost to the customers.
This slide shows our hard-to-reach projects in Santa Barbara County and their tremendous growth from 2024 to 2025. After evaluating metrics from 2024, we wanted to improve outcomes in our county and address this in a few ways. To increase participation in underserved communities, we improved our outreach to contractors who serve hard-to-reach customers through communications with partners such as 3CE. We were able to see where demand for heat pump water heaters was rising in North County and we continue to keep our hard-to reach incentives high for contractors and for residents to encourage adoption of energy efficient heat pump technologies The multifamily space is extremely diverse and each property has its own specific goals, staff capabilities, technical feasibility challenges and more.
Multifamily properties in our region tend to be smaller they don't have corporate financial backing and hard-to-reach properties are usually struggling to make project cost pencil out Our program is designed to understand each property's needs and evaluate what upgrades will be best given their specific conditions. Property owners receive no-cost assistance from start to finish with site assessments, technical assistance, owner contractor support and more.
Rebates are paid directly to property owners or property managers and the structure includes enhanced incentives for underserved properties, low-income housing and installation of high performance electric equipment. As you can see last year our program grew in the number of units served by 430%. In Santa Barbara County specifically, projects at four multifamily properties reduced natural gas use by 21,000 therms and carbon emissions by 73 tons.
In Santa Maria the program completely paid for a comprehensive upgrade at an affordable senior living property with 130 units and this is noted in the annual report. These senior residents will benefit from reduced combustion risk in the home and improved lighting appliances water fixtures and air quality The Commercial Energy Savings Program launched in December of last year and has just begun to serve local businesses with discounted energy upgrades.
The program pays incentives for any project that saves energy, with highest incentives paid to projects for hard-to-reach businesses which include small and medium sized businesses in disadvantaged communities or located in a leased or rented facility. This program works in partnership with regional green business programs. Businesses are sure to receive personalized support to ensure they can take advantage of other eligible energy programs and benefit from the greatest savings possible.
Building Performance Training is a workforce development program for current and prospective building professionals in the construction trades, design, real estate and beyond. Technical and soft skills training and certifications focus on energy efficiency, high performance building and electrification. This program is a key resource for industry professionals on the Central Coast looking to upskill through convenient classes and by obtaining certifications.
In 2024, the program hosted a total of 115 training events with over 2,000 total attendees. Our staff and subcontractors also participated in 27 guest speaker events at trade schools, community colleges, and high schools. The Energy Code Connect program offers local governments and local building professionals access to resources needed for enforcing and complying with the California Building Energy Efficiency Code, Title 24.
This includes best practice guides, checklists, policy support, on-site support, and targeted training. The program hosted 25 events in 2024 and through its code coach service filled at 142 inquiries Serving 64 organizations and 39% of our tri-county jurisdictions. Lastly, we know how important the ag industry is in our county and the Agriculture Energy Solutions Program was launched in late 2024 to provide value to that sector and help farmers reduce energy costs.
Observing limited awareness of energy saving incentive programs amongst farmers, 3C-REN determined that technical assistance was needed for farmers to participate in existing programs being offered by the utility companies. This aspect of technical support is not a focus of other utility programs. It's a unique role that our program will be serving to drive participation in those IOU programs.
We offer specialized support to agricultural operators with high energy consumption, such as those in controlled environment agriculture by identifying opportunities for energy efficiency improvements and then supporting their implementation. The free technical assistance comes in the form of utility bill analysis, facility site assessment and benchmarking.
And it largely targets small to medium sized farms in rural socially disadvantaged and hard to reach areas where available farmers will be connected to complimentary incentive programs that can help cover the costs of implementing the projects identified through these offerings. Just last week upon invitation our ag program manager presented at the Santa Barbara County Farm Bureau board meeting And the executive director was enthusiastic to share a program with farmers that can help them save money on energy costs.
Farmers expressed their interest too. Over the past few years, 3C-REN has demonstrated value by developing programs for residential and commercial customers that would otherwise not be served by the utilities And we have served thousands in the workforce with education to enhance their knowledge and skills and increase their earning potential. As greater awareness of our offerings and value increases, we get to learn and adjust to better serve our communities.
This year, our entire budget for single-family programs was exhausted in six months. Residents and businesses are demanding services and support to save energy and costs and do right by the environment, and we're here to serve them. With that, thank you for your time and attention. Our Tema County staff and even a guest 3C REN staff on Zoom in Ventura is happy to take any questions.
1:20 – 1:2615 turns
Thank you very much. Appreciate it. Supervisor Hartman with a question?
Yeah, let's see I have several. The first is your technical assistance or training in the construction industry. I wonder if you could break down a little bit more about what you're doing. I know heat pumps for example Home heating and cooling, five years ago you couldn't find an installer. And now I think everybody understands that that's really well suited for our California climate. So I just wonder if you could expand a bit on if you had a role in that?
And just how the program works. And I'm particularly interested in this for energy, but also for fire because retrofitting homes for fire safety is quite analogous. And there aren't people who really are out there who know how to enclose the eaves and some of the things like windows work for both purposes. But anyway, somebody's got a great model there and I'd like to know more about it.
Thank you, Supervisor Hartman through Chair Kaps. You mentioned our building performance training like Workforce Education Program and that is a part of it we actually approach it from two different angles one is as you mentioned providing Events that serve thousands of people in the industry related to high-performance buildings. And so this is from design, to construction, to all the appliances installed and we have many events throughout the year focused on heat pump technologies. Heat pumps for HVAC systems, heat pump water heaters both online, in person hands-on trainings and installations. So we're supporting the workforce that way and then we're also offering incentives through both our home energy savings program and our new commercial program where we're giving incentives to contractors to install these new technologies.
So, we have seen tremendous growth when we first started the program like a few years ago it was hard to find a contractor to install that heat pump water heater and there has been more contractor participation as we mentioned In our program to offer installs and we've been offering great education in that regard. Thank you. My
next question has to do with ag programs. At least the people I talk to, the electric equipment is still Experimental, but using solar for water pumping on agricultural fields. That's really I think everybody agrees that that's a great saving so wonder if you could talk about are you involved in that aspect of it at all?
I am not involved in the ag program so much as I am in our home energy savings programs. So, I can't speak to that directly but I do know that through the utility bill analysis and assessments and benchmarking I think that farmers are receiving information they need to decide if at this point in time you know the technology that's out there and learning about the incentives are going to make it be a right fit for them
Supervisor Hartman, through the chair I also want to note that we have folks from Central Coast Community Energy who will be following our presentation and I'm sure they'll be able to speak to some of their interactions with the ag industry.
Right and that was my next and final question is how do you collaborate? I know they work, they're working on agriculture and you are and so I just wondered how it worked together Especially because part of your region isn't part of their region.
Yes, we do have overlap in San Luis Obispo and Santa Barbara counties. And across all of our programs we actually meet regularly with 3CE staff. We meet regularly with the utility company staff as well to make sure that our programs are complementary and that we're leveraging our experience and knowledge to serve our communities best. Supervisor
Nelson?
Yes, thank you Chair Kaps. So I just want to make sure I understand how the funding works for the RIN. So does it come from utility bills? Is that how it works? Like so all the utility bills within a county there's a surcharge on there that goes towards these programs and staffing?
Exactly. All of us who pay our gas and electricity bills have a rate payer charge that is on those bills throughout the state, you know, regardless of the territory that we're in or who were served by. So we're all contributing that way on our bills and that is going to the California Public Utility Commission and then given to 3C RIN.
So is there a RIN charged specifically? Or is it just part
No, it's a charge that has been the same and was initially just going to invest your own utilities until RINs were formed to request some of that money too. So it has not increased the amount that customers are paying to support RINS. It's only tapping in and asking for an allocation of the funds that were there.
So counties that don't have RIN, they still pay this?
Yeah. All counties, all residents in the state are paying this on their bills and they can access programs both from RENs where we're able to kind of reach our more rural and smaller communities here on the central coast. And they can also access programs from investor owned utilities that tend to do a better job in more populated areas. Thank you.
1:26 – 1:3310 turns
Thank you. I'll take, I have a couple questions just really if we could go to that slide 10 please. I think it's slide 10 about just the increase in new users and hard-to-reach populations. Especially in North County, I just yeah it's really an achievement. Just having worked in the space of trying to reach hard-to-reach populations. I just was hoping you can elaborate building on Supervisor Hartman's question on heat pumps. How do you actually get people to install heat pumps that That might not be, you know, might be working three jobs maybe working two jobs. This isn't necessarily on their priority list yet we'll be helping them save money and doing something that is better for their health as well so how to like walk me through it just I understand because it's really an impressive jump
With our single family program, the focus is on contractors and them really promoting the equipment to customers and educating the contractors on incentives that are available that come and go month-to-month. Educating them on these incentives so they can bring them to customers And we also provide kind of from the other end education for residents. We worked the past year and a half with the Santa Barbara County Promotores Network to do outreach and education in Spanish throughout our county.
So we are reaching residents with education, but it's our efforts in providing education to contractors. Reaching out to them personal touch to increase the contractors participating in our program to really change the market and have those be recommended to the hard-to-reach customers. We also make sure to offer Support we had it. We had events last year a few lunches and breakfasts informing contractors on how to stack incentives because we offer 3C rent incentives the Central Coast Community Energy offers incentives that can stack with ours and this past year, we also had state incentives from TechLink California and then IRA incentives through HERA rebates for HVAC systems So we bring contractors together, tell them about all the opportunities to stack these for customers and ask them to go into our communities and find customers who otherwise wouldn't be able to pay for these projects and complete them.
And we also give the contractors an incentive on top of that. Okay.
And is there a program geared towards elderly? I didn't see that but or could there be in the future?
Chair Caps In regards to a program geared toward elderly, our Multifamily Home Energy Savings Program has been serving senior affordable housing properties. Oh great. In 2024 there were successful projects in Santa Maria and Ventura serving units with over 100 I'm a senior and these are comprehensive projects where the owners were able to put in changes across the board in regards to heating and cooling, space heating and cooling, water heating, insulation. Multiple, multiple measures and especially interested in health and safety of the residents in their home such as installing induction cooktops for example where residents aren't exposed to traditional electric cooktops that get very hot or gas stoves so there's increase safety, I think that is also being addressed.
I mean, I'm just incredibly impressed it's usually you hear how hard it is to reach non-English speaking populations underserved populations and yet this these numbers really show such dramatic growth so well done
Chair Kaps, if I may also piggyback onto that. I think what's impressive is particularly on the slide that you referenced is that we wanted to make certain that we were clear in our effort at trying to serve all aspects, all regions of the county and sometimes it gets characterized as one portion receiving priority over others and I think what this indicates is that through some hard work, some outreach Both the business community in the form of contractors and then the residents were able to make some noticeable significant progress in North County.
No, that's clear. I appreciate that coming from the part of the county that tends to sort of you know, the student population, the environmentalists et cetera so well done. Supervisor
Hartman? Two comments maybe one a question. The Promotaurus Network is superb and I think that that's a key to outreach to hard-to-reach communities and I'm so glad that you're using them I just wanted to hear a little bit more about the contractor incentive that as you were talking about stacking the incentives, you know, the furnace goes on the blink. The person calls somebody comes it's cold. You need your heat back so you know.
And I've been in this situation, so you just do what they say. So I think focusing on the contractor is absolutely key and how do you incentivize them? Could you expand on that a little more? I mean the training and all but specifically I guess you're giving them monetary incentives
Yeah, our single family program is called an NMEC program and we assign our incentives based on how much energy a project is estimated to save or projected to save. And so these are metered energy savings. We have a set amount of incentives that are allocated 50% to the homeowner and 50% to the contractor. And in more detail up front, the homeowner gets their 50% of our incentive applied to their invoice and then the contractor will actually receive their incentive over the course of the 12 months that follow based on how the project performs. We receive meter data so we know if their calculations on how much energy savings would occur are accurate, so if they do a good job in their estimate and their installation and the energy savings are in line then they're going to receive their incentive payments over the course of 12 months And if it performs better or performs worse, their incentive payments are going to go up or go down according to that.
And I guess that's been very
effective. It's brilliant.
1:33 – 1:478 turns
Okay
Madam Clerk any requests to speak from the public? Chair Capston members of the board we have no requests to speak from the public on this item.
Any other comments from the board? I think we covered it with that report and our questions thus far. So thanks for this report,
we'll move on to the next one but first we'll take a vote on this report A through B. We have a second by Supervisor Nelson all those in favor please say aye. Aye. Motion carries thank you very much and then
we'll move To item number three which is the 3CE annual update. With a familiar face, Supervisor Palacios.
Chair Kaps and members of the Board Department, Item Number Three is from the Community Services Department. It is a hearing to consider recommendations regarding a Central Coast Community Energy 3CE Annual Update.
Good morning Chair Capps, members of the Board of Supervisors. It's a joy for me to be back here with you today. I want to introduce your team, our team at Central Coast Community Energy. Our Chief Communications Officer is Catherine Steadman. Judy Young, our Senior Customer Accounts Manager. And Spencer Brandt, our Community Relations Manager. We're here to give an annual update on 3CE's programs, activities and procurement to you.
And Catherine will begin that.
Thank you it is really a pleasure to be here and thank you for dedicating time for this presentation today. 3CE is a public agency that sources electricity for communities along the Central Coast. We work in partnership with PG&E and Southern California Edison, who continue to manage the transmission and delivery of the energy. So while they continue to maintain the lines and infrastructure, 3CE purchases the electricity from generation projects like solar, wind, and geothermal 3CE serves 30 cities across five counties, providing clean and renewable energy to 1.2 million people.
This January the City of Atascadero along with the County of San Luis Obispo became the newest member agencies of 3CE. In 2024, we delivered 409 megawatts of renewable electricity. That's enough to power more than 350,000 homes entirely with clean energy. By doing so, we avoided over 445,000 metric tons of carbon dioxide emissions which is equivalent to taking 105,000 gas powered cars off the road.
3CE is on a path to deliver 100% clean and renewable energy to our customers, a decade to a decade and a half before the state's mandate. For example we have already secured contracts for 64% of our electricity load to be renewable by October of 2028. Battery storage is essential for California's transition to carbon-free energy and for energy affordability.
Batteries capture excess renewable energy generated during sunny daytime hours, and use it when demand peaks in the evening. At the utility scale this reduces our dependence on costly natural gas peaker plants that typically fire up during early evening hours helping control electricity costs for all our customers. For individual households, home batteries provide backup power during outages and empower customers to store inexpensive daytime renewable energy for use during expensive peak demand periods.
So to illustrate this I'd like to share what the energy mix looked like during Labor Day weekend in 2022. As you may remember, this was California's last flex alert. A statewide call to reduce energy consumption and avoid rolling blackouts. This graph shows the energy mix hour by hour. Red represents fossil fuels, the largest share. Green shows intermittent renewables that spike during daylight and diminish at sunset.
Notice the tiny orange line at the bottom. That's batteries charging. You will note the orange line at the top, which shows battery deployment onto the grid. Now let's compare to a more recent heat wave. During the July 4th holiday last year, the green renewable bar has grown higher as more resources come online. The red fossil fuel bar shrank showing less reliance on expensive peaker plants.
Most notably the orange battery bar more than tripled Charging in the morning and deploying during peak evening demand. I think this is a helpful visual to show how battery energy storage systems are extending renewable energies usefulness into evening hours. Earlier this year, your board held a hearing on battery energy storage system safety and invited our CEO Robert Shaw to share our perspective.
Since we continue receiving safety questions from community members I'd like to highlight several key facts. First 3CE has no power purchase agreements with indoor battery facilities like the Moss Landing Project All battery storage projects that 3CE contracts with must use containerized systems equipped with individual fire suppression units and meet the latest fire and building code requirements.
The safety data is also encouraging. Battery system failure rates have dropped 98% since 2018, even as global battery deployment has increased by more than 25,000%. These improvements in reliability coincide with massive growth in the technology's adoption worldwide. At 3CE we respect the land use and building authority of our member agencies We appreciate the opportunities your board has provided for us to explain how battery storage enhances renewable energy integration, grid reliability and customer affordability.
Now I'd like to talk about some projects that are under development as we speak. First, the Willow Rock Energy Storage Center will use compressed air to power turbines on demand and will be the largest compressed air energy storage project in the world. Once completed by 2030 it will provide 200 megawatts of power to 3CE customers during the 4 p.m. to 9 p. m. time frame when energy is most in demand.
The next project under development I'd like to highlight is Atlas Solar. This is one of the largest solar plus storage projects in North America and will deliver 150 megawatts of clean energy to 3CE customers. It is expected to come online in 2028. Also, under construction is the Aretina Solar Plus Storage Project This project will provide 120 megawatts of energy for our customers and is expected to come online next year.
Now I'd like to highlight a project that recently came online, the Victory Pass Solar Plus Storage Project started delivering energy to our customers last May. This project combines solar generation with battery storage to provide Reliable, renewable power. Of the total output 100 megawatts are dedicated to 3CE customers enough to power approximately 68,000 homes with clean electricity.
We know that delivering renewable power is only part of the equation. Connecting with our communities is a key part of our mission in 2024, our outreach team engaged across the region. Sponsoring events, hosting webinars and leading workshops about our energy programs. To better serve our diverse region 3CE has added additional bilingual staff, expanded translated materials and created an action plan to support underserved communities.
We've also partnered with community-based organizations and our customer service hotline is capable of providing assistance in more than 150 languages, including English, Spanish and Mixteco. 3CE's energy programs provide customers with tools that accelerate electrification, enhance renewability and put money back into the pockets of community members. Our flagship program, Electrify Your Ride provides between one and four thousand for the purchase of a qualifying new or used electric vehicle.
Additional programs cover the cost of electrifying home appliances and installing a home battery as well as targeted money to support electric equipment needs of our agricultural sector. We also have programs specifically in place for public agencies to help cover the cost of replacing fleet vehicles, including everything from light-duty pool cars to heavy duty equipment like street sweepers.
Sister programs including Plan Your Fleet and Charge Your Fleet help supplement the planning and infrastructure costs of electrification. Our electric bus program is often utilized by school districts In fact, the College School District and Santa Ynez received funds for an electric school bus earlier this year. Finally our REACH Code program provides technical assistance for city staff as they develop energy efficiency standards.
Since 2018, nearly 7000 customers have received rebates through 3CE's clean energy initiatives. That's over 11 million back into our customers' pockets, over 4 million of which was to income qualified customers and underserved communities. Here is a breakdown of how 3CE has invested in the County of Santa Barbara and its unincorporated areas. I have to be transparent, this is usually the part of the presentation where I give a friendly challenge to agencies to utilize the funding that 3CE makes available. However, the County of Santa Barbara has done an exceptional job Of using 3 C's public agency programs and that is a credit to your sustainability and general services staff.
This past year, 3CE provided $150,000 toward the installation of 60 EV chargers at the Better Ravia campus as well as rebates for a service truck and a cargo van. Additionally customers in the unincorporated areas are taking advantage of programs like the Agricultural Electrification Program In one project in particular, 3CE provided $50,000 to a North County fruit farmer for the purchase of an electric tractor.
One development I want to make you aware of is that the Charger Fleet Program now covers up to $100,000 per DC fast charger or 75% of the project cost including time and materials. We find many agencies are using these funds more and more in light of the California Air Resources Board advanced clean fleet mandates. Now I'm going to turn it over to Senior Advisor for Policy and Legislative Affairs, Doss Williams, to give a brief legislative update.
1:47 – 1:522 turns
First of all, I just want to say it is a real asset and we want to thank your two representatives here for their help both in our legislative outreach and their participation in the governance of Central Coast Community Energy Joan Hartman, your designee on our policy board and Jesus Armas who serves on our operations board. So this legislative session has both great opportunities and dire challenges for clean energy at a state level there's an increasing realization that affordability is can be tied with and is actually integral to long-term support and ability to move towards clean energy.
And both houses have prepared affordability packages. We have come out early in support of the Senate one, there is also great merit to the elements of the assembly package that we are working on amendments too to be fully in sport. The Senate Bill 283, you already talked about this morning. And our largest legislative priority has been the Pathways Initiative.
This is an attempt to create a regional market in the Western United States for energy which would both be able to mean that California could access hydro and wind resources in other states and that those other states could access plentiful supply of solar in the middle of the day. This both would have financial advantages for California and for rate payers, and also reduce emissions both in the state of California and reduce the growth of emissions in other Western states.
The challenges really are in the Federal Budget Act which was passed, the Senate version was passed this morning This is the one that is referred to often as the big beautiful bill. It has real challenges for clean energy, a rapid phase out of the tax credits that energy developers use to build wind and solar facilities That will have a long-term effect on price because wind and solar facilities are built faster than natural gas facilities, and they are now a lot cheaper. So if you take away the credits you're not going to cause more people to turn to natural gas fired power plants but you are going to mean that everything is delivered at a higher price This won't have immediate effects in the state of California.
In fact, next year we would have, we're forecast to have level energy prices which I hope is good news to you and to your constituents but it means that in subsequent years as these credits are phased out that projects will cost more and unfortunately that will be borne by our rate payers. The current Senate version that passed this morning also ends EV incentives by September 30th and home electrification incentives by the end of the year.
We expect this, we don't expect that we would reduce our incentives as was articulated by 3C Wren there are stacked incentives But we are worried that this will affect the utilization of our programs. And so we do urge our customers, your constituents to use these as deadlines and that if they were considering the purchase of an EV or home energy efficiency work that they do so this year.
with urgency. In fact, with home batteries because it takes several sometimes a couple months to get interconnection with PG&E or SCE I would start that process as soon as you can We will continue to be monitoring this. I now lead us in the last six weeks, lead a small team that works on a small but mighty team that includes Mr. Brandt and someone you haven't met yet up north.
We work on both federal state and local legislative issues so we would love your participation, your help, your input thank you.
Well that concludes our presentation for today. Thank you again and we are happy to take any questions.
1:52 – 2:0215 turns
Excellent presentation, thank you so much. Supervisor Hartman questions?
Well first have to say welcome back Doss it's great to see you and and to see you such a great match in that you're still connected to Santa Barbara County in this very significant way and just wanted to add that Mona Mia Sato our CEO not here today but she's also been involved with 3CE I think since we joined. So I guess I have a couple of questions And I wonder, the big thing for our constituents is cost. And so in my view 3CE has really delivered on its promise to be below the investor owned utilities and to allow us to reinvest money back into these community programs and transition to renewables while at the same time giving more local control like this, an opportunity to be engaged as we just described.
So explain the costs on the utility bills and why they're still going up?
Sure. Well it's important when you look at your utility bill to differentiate between what you're paying for electricity generation and what you're paying for the transmission and the distribution of that electricity. So California has seen tremendous increases in energy prices over the last several years, those are largely due wildfire mitigation to the need to upgrade our electricity infrastructure, the capital investment that's required.
And it's also about a subsidy that has just grown exponentially for customers with rooftop solar. So that is really what has been driving the electricity increases we are all experiencing on our bills. 3CE is very proud that we have always been able to be less expensive than the investor-owned utilities on the generation rates, so we hope to continue to provide that and hopefully that adds some clarity
And I just want to underscore, I adopted solar panels on my house early and the developer said well we can't connect you to battery because it doesn't match. So I've been yesterday finally got an installer who's going to do my battery but with significant reduction in cost but that'll disappear so if you want to get I want to start by saying thank you to all of you for being here today. I know it's been a long time since we've seen your solar battery now, and it's so important in Santa Barbara not just to be able to use it at your own energy that you produce during the day, during the evening hours but we expect that these public safety power shutoffs are going So one of the incentives that I'm getting comes from 3CE.
Could you describe that?
Sure, so we launched a residential battery rebate program and the rebate is based on the kilowatt production of your battery. But it's really been a fantastic program because it allows customers to take more control over their energy costs and also really be part of the broader solution when we have We have customers discharging their batteries during 4 and 9 p.m., and our program requires customers to do that.
It's, again, like reducing the amount of natural gas that we have to purchase in those evening hours. And as you said, the batteries are giving individual homeowners that additional resilience If there is a power outage. So it's a new program, but it's really been garnering a lot of interest for seeing applications increase and we're hoping that it will grow even more in the coming year.
Well thank you and I wonder if Mr. Williams, you would talk about the Pathways. You outlined it but I guess you didn't really talk about its prospects and timing and what it would mean for all of us on the ground?
Well thank you Supervisor Hartman through the chair. You know Pathways is... you could say it has a lot of support The initiative made it off the Senate floor with 39 members, all of whom that were there voting aye. Right now it is strangely not being referred to a committee in the Assembly side and this arises out of an amendment That was added in appropriations in the Senate that would create a separate body for oversight and the ability to withdraw from the regional market in 120 days.
We sign long-term contracts for renewable energy, not 120 day contracts and neither does any other electricity provider in the state. And so having a legislative mechanism that does not work in the real world has been a real source of contention. Most senators that voted for it criticized the amendment. And so now we have a very strange situation where, which a bill that has overwhelming popularity is not even being referred to committee and so what we take that as a sign is The speaker is engaged, because rules is the speaker's committee. And that there will be a top level negotiation over the future of that amendment.
It's really imperative that this happen this year. There is a rival market called Cost Plus out of Arkansas that many of these same markets can join. It will not have the same emphasis on decarbonization It will not have the same effects for decarbonization. And if California is left alone because other markets have chosen elsewhere, that would be a bad thing in the climate fight and a bad thing for our pocketbooks.
There is also a price opportunity, a savings opportunity in front of us Last year, one third of our generation costs were regulatory in nature or resource adequacy costs. This is the insurance, the backup power insurance that we are all required to buy as electricity providers. There are several ways you can get RA. The best and cheapest is to build batteries and pair that with a resource.
That's why batteries are crucial to our long-term prices. The other way is you buy it on the open market. The regulation in the state has moved to, you need to have it for every hour of every day but right now we are only allowed Regulatorily to buy it in 18 hour or larger increments. It means we have to buy an oversupply of it, and so one thing that is not in the affordability packages but we are working on in conjunction with our sister CCAs is attempting to move that regulation If the regulatory mandate is every hour, we should be able to buy and sell and trade for every hour.
That is what the market would be more efficient. And that could save rate payers a decent amount of money in the long run. Thank
you for that explanation of resource adequacy which I've always struggled with. Supervisor
Lee.
Good, just make a comment. So I'm doing my part. I got solar battery storage and turn my home into a virtual power plant recently so it works. I see it. So what that said are the three C plan to offer more rebates incentives towards electric bikes even electric motorcycles because all of the C supervisor Nelson on those on a bike.
You knew that was coming?
I love bikes
stay in shape though
Got a pedal.
So just a question for you, are there plans?
2:02 – 2:067 turns
Thanks and it was really around the concern that electric bikes aren't necessarily replacing gas powered vehicles in some cases they are I know but you know a lot of times if you have grocery shopping to do or You know, you're probably going to take your car. But it was a popular program when we had it and I will definitely note your interest. Thank
you. Thank you. Oh, I'll just see actually if there's public comment first before
chair caps members of the board. We have no request to speak from the public on this item.
Thank you Madam Chair. I just want to say that I really appreciate this program and it's been, it's actually been seamless. I mean for the kind of change that it's been for a lot of people, I think 90% of the people didn't even notice did it actually even happen? They don't really know where their energy is generated and 100% of that 90%, I'm pretty sure wanna see us purchase in the most planet friendly That's available.
I don't know anybody that is holding on to oil and gas because we just like oil and gas. We do it because we know it's reliable, and so the more reliable clean energy gets, the easier it is for us to make that transition. So I've had very little pushback. And Bob and I are probably from the most conservative part of the county but People are just either, all they really care about is when they go to turn on the light switch that it comes on. That when they turn on the hot water it's gonna be hot and if we can do it in a more environmentally friendly manner and at either lower cost or the same cost how do you argue with that? So I just appreciate and been very responsive whenever we have had questions so appreciate the program.
And I'll just add to it's been so gratifying to see the cost of these really good solutions come down so much, so that it's not out of reach. You know, electric cars were really for the rich and solar was only for the mansions. And just to witness and you know I sound like a older person now by saying this but like just to witness that we're in the good old days now that it's It's really changed so dramatically and that really because of programs like this one, that we're making a difference. And so I want to just echo that these rebates are going away and so now is the time, the federal, to get that car or make the change, get solar do all of the things maybe folks have been thinking about or putting off for getting that second car etc., because it's really time and I appreciate that that's your message of all times this morning where that bill has just been I will entertain a motion.
And I will second.
All those in favor, please say aye. Aye. Motion carries. Thank you and we're going to take a short break. How about 10 minutes? 1120. Okay. Everyone we are back. We are back. Supervisor Nelson, Supervisor Hartman we're back. Item number four.
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Chair Kaps and members of the board departmental item number four is from the County Executive Office it is a hearing to consider recommendations regarding the Richards Ranch reorganization local agency formation commission also known as LAFCO file number 24-08 and tax exchange update
Okay, thank you. Good, go for it Mr. Horton.
Good morning Madam Chair, Board, Wade Horton Assistant CEO I'm joined with Claire Tobin Legislative Analyst and Brittany Oderman Deputy CEO We're here today to provide an update on the going tax exchange negotiations between the county and the city of San Maria regarding the proposed Richards Ranch annexation. As required under state law, the county and the city must agree on how property tax revenues will be shared before the annexation can move forward.
Since April staff has been meeting with their counterparts from the city to work through key issues like service responsibilities, infrastructure investments and long-term fiscal impacts. Both sides have agreed that we need an independent fiscal analysis to help move the conversation forward and that process is underway Today's presentation will outline where we are in the process, key issues under discussion and seek your policy guidance to support the county's position moving forward. With that I'll turn it over to Claire for the presentation.
Thank you, Wade. Claire Tobin, Legislative Analyst in the County Executive Office. So today I'll be providing a little bit more extensive update on the status of tax negotiations between the county and the City of Santa Maria regarding the city's application to annex the parcels known as Richards Ranch. Our recommended actions for today are to receive and file this report, delegate authority to the CEO to extend negotiations if needed.
This is important because of the board's schedule over the next couple of months and to provide any direction to staff on the negotiations. In February, the City of Santa Maria filed an application with the Local Agency Formation Commission or LAFCO to annex four parcels of unincorporated county land into the city. These parcels are known as Richard's Ranch.
Per state revenue tax code, the county and city must negotiate a tax exchange agreement for how property tax will be apportioned if LAFCO approves the application. The final agreement must be approved by the board and also by the Santa Maria City Council. If no agreement is reached, then the reorganization cannot be approved and therefore the LAFCO executive officer cannot issue the certificate of filing.
Staff from the county and city have been negotiating since April in accordance with statutory timelines and I'll go over the timelines a bit later in the presentation. So, next I'll provide a little context on the annexation application. The map on the left shows the southern portion of the city of Santa Maria with a black outline. The blue square shows the area that's highlighted in more detail in the map on the right.
The red outline of that map on the right shows the area that would be annexed. On that map on the right you can also see the unincorporated area of Orkut is in white and the city of Santa Maria is in that kind of light green color. The proposed annexation is about 58 acres So this really fun table shows the current property tax allocation for Richards Ranch.
The assessed property values for these parcels totaled $6.5 million in fiscal year 24-25, amounting to total tax collections around $65,000 with the 1% property tax. We expect that assessed values and tax collections would increase substantially once the land is developed as anticipated. The allocation of property tax among districts varies across the county, the applicable tax rate area or TRA which we're looking at here determines the allocation.
So as you can see in this current TRA, the county receives about 14% of property tax for a general fund and nearly 17% is apportioned to county fire protection. The majority of the tax goes to school districts that would remain unchanged. In their application to LAFCO, the city proposed which districts should have their allocation changed should the annexation be approved.
Those districts are listed here in bold so County General Fund would be renegotiated which is the process we're in now and the city would be added to this list and receive a percentage of property tax All the other special districts that are listed in bold would quote-unquote detach, which means they would receive no tax revenue but they would theoretically provide no service.
This is a little bit more complicated with fire protection because of our regional dispatch system fire would probably still respond to calls in the area it might be a little more straightforward with say the Mosquito District So when we're thinking about a future tax exchange agreement, it would look a lot like this with some modification to the districts and the percentages. And then with some other criteria added.
So these are, again the special districts highlighted that would be impacted. A little bit about each one and just to note the dissolution of County Service Area 32 was scheduled to be heard in LAFCO in June but continued likely will be heard in August. It was originally used to fund law enforcement services in unincorporated areas but has not collected tax since 2011 so there's been a recent state law that is cleaning up these unused districts So in order for LAFCO to consider whether to approve the city's application for annexation, the county and city first need to negotiate a tax exchange agreement.
This agreement would specify which districts are detaching and what percentages of property tax will be allocated to the county and the city. In addition to negotiating the base property tax in any future increment, there are a lot of other issues that we're considering here. So for example, we are clarifying which agency would provide road maintenance services and on which roads.
We're negotiating an exchange of regional housing needs assessment or ARENA credits. Another example is figuring out the timing of when all of these elements would go into effect. And also gathering the information on projected revenues and expenditures for this development that hasn't happened yet is part of the process. Among these negotiation factors, there are some specific issues of concern that we have at the county.
So when the city submitted their application to LAFCO, county departments provided a response and some of their responses also relate to tax negotiations. The results of the tax negotiation need to provide sufficient revenue to the county, cover all their costs that would be incurred in providing services once the land is developed. And to ensure that our departments can cover their costs we need to be really clear about what services they're providing and what services would be provided by the city.
So in the case of fire, our regional dispatching system dispatches from the nearest available point usually a station. County stations are closer to Richards Ranch than city stations so we expect that county fire protection would still be providing significant service in this area and therefore they should not receive a 0% share of property tax. And for public works, we also need to be clear about who's providing ongoing maintenance and to what roads and to ensure that necessary future infrastructure improvements are occurring.
There are other factors but these are just a highlight of few of the ones that were particularly going through Current status is that staff from the county and the city have been meeting regularly. We've also met with both of the chiefs, we collectively reviewed a fiscal analysis that was provided to us by the developer. We provided feedback to refine this analysis and overall we found that it was a pretty solid assessment but there were some critical information that we need and we agreed with the city that we need an independent analysis So this independent analysis is underway, and we expect to have the results of it by July 9th.
So the timeline for this tax negotiation process is a bit complicated. All the deadlines are set in state code but they do offer flexibility. Timelines begin when the application is submitted to LAFCO and other deadlines waterfall from there. Basic deadline for negotiations is 60 days with a provision to allow either agency to extend 90 days as long as they provide notification to the other agencies and to LAFCO. So we have just passed the 90 day mark at the end of last week.
The code requires that if negotiations are not completed within 90 days, the county and city need to proceed through a series of three steps. This first phase consists of obtaining an independent fiscal analysis which adds 30 days to the timeline. So because the county and city have already agreed that we need this independent analysis, we have 30 more days and can proceed with negotiations until July 26th.
No approvals are needed to move into this fiscal analysis stage according to the state code. By July 26th, either both agencies need to reach an agreement which consists of the board and the city council approving the agreement or one of two things happens. The board and the city council either agree to extend the fiscal analysis phase or both the city in the county must jointly retain a mediator If mediation is not successful, we need to move into an arbitration stage.
The fiscal analysis, mediation and arbitration stages can all be extended if the board and city council agree and there's no limit to that timeline based on the code. So to wrap up, looking again at our recommendations for today. First receive and file the report. Next considering the board's schedule we recommend that the board authorize the county executive officer to seek and execute an extension agreement for the fiscal analysis phase that will allow us time to return to the board and report on the outcome of this independent analysis.
And finally we welcome any feedback or direction that the board would like to provide. Chair caps that concludes my presentation
Thank you Miss Tobin. Questions from the board? Supervisor Lee.
So if agreement is not agreed upon, who pays for the mediator? The county or the city?
They would pay equally.
Equally and was there any concerns from law enforcement from the Sheriff's Department about services?
So we are including the the cost of custody services in the analysis because those services would still be provided by the county, but we're assuming that the law enforcement services would not be included. Thank you. Provided by the Santa Maria Police
2:18 – 2:3124 turns
Okay other questions from the board Supervisor
Nelson? Yes thank you So you're assuming that the Sheriff's Department would not be responding to this area that's just, I don't know, a quarter mile away from their substation and that?
Yeah. I think per the application we're assuming that the Santa Maria Police would take on that role.
Okay. Does that sound practical? I mean, it's a little concerning to me. We're supposed to be trying to bring in when we have a law enforcement need. Meanwhile the police station is much further. And I guess that's what we're really talking about here in the negotiations, you know where if we think they were going to be doing more or probably gonna need a larger cut of that percentage that's left and I just wanted to clarify and make sure you know on slide 5 It goes through the parcels of the Richard Ranch parcels there. And in my notes, I also call that Keysight 26 just because that's what it is in our community plan.
Our expectation is that's going to go up quite a bit once those properties are developed right? So right now we're all looking at $65,000 on an annual basis but in the future that number is going to probably go up exponentially as well with taxes it's gonna go up exponentially with the needs for services and municipal services.
Absolutely
Okay. And in the Orchid area, it relies on more than just property taxes for serving that area right? What other ways are you know as the county provides services in this general area because that's generally the Orchard area what other forms of revenue do we use to do that?
What would be used if that area was developed in Orkut?
Yes, correct.
Yeah I know that there are some other districts that are fee-based that would come into play and all of these can be included into the negotiation. I think the assumption from the application would be that it would not be part of Orkutt right to be part of the city and so would be part of those districts but we're happy to look at that as part of the negotiation.
And so the next steps from this is to take our direction, meet with City of Santa Maria staff. We don't have any meetings for a month so you know we're going to miss at least this next deadline. At that point come back and report back to us on how that's coming along before we kind of do last best final offers? Is that kind of how that would go?
Yeah, I think so. We have yeah we'll have the analysis in a couple of weeks. So we have some meetings set up with the city and then yeah for final board approval certainly.
Great. I have a few other comments and some potential direction for the negotiators but wait till after public comment or other comments from my colleagues.
Okay Supervisor Lee.
I just have a question over the building standards does the county and City of San Maria has similar building standards about the high density? Is it apples to apples or is it different?
That's an excellent question.
Because we don't want to start, set a president that can benefit or be against the seat of San Maria or get above building standards.
I'll ask Supervisor Plowman or I'm sorry Director Plowman to come up and address that demotion.
Supervisor Lee through the chair, so each jurisdiction has its own zoning codes. We do, there's a uniform building code that applies everywhere but the height and setback and density restrictions are different in our jurisdictions. And to be honest with you I don't know exactly what the height requirements are or the setback requirements are in the city currently but I think the project that they're proposing looks like it would fit within our code requirements as well what I've seen But there could be some differences.
Other questions from the board? Okay, let's see if there is public comment at this point.
Chair Kaps and members of the Board we do have one request to speak from the public on this item and we are going to remain here in Santa Barbara with Hugh Montgomery.
Madam Chair and honorable members of the board, my name is Hugh Montgomery. I serve as the president of Santa Barbara County Firefighters Local 2046. I'm here today to express our strong opposition to the proposed annexation. The Santa Barbara County Fire District is primarily funded through property tax revenue. Maintaining that funding is essential to sustain fire and EMS services today in the future for Orchid and the unincorporated areas within the Santa Maria Valley.
The proposed annexation would remove much-needed property tax revenue that the Fire District relies on to provide fire rescue and EMS services. A recent study has shown that Santa Barbara County Fire Station 21, located in Old Town Orchid, responds to incidents in the area of discussion one minute faster than close to Santa Maria City Fire Station 6. In addition to our rapid response, Station 21 offers the highest level of emergency care with a four-man engine company and advanced life support delivered by Santa Barbara County firefighters that are paramedics. It is our firm belief that this annexation is not in the best interest of the constituents we serve nor does it support the long term health and stability of the county fire district.
We respectfully urge you to oppose this annexation and protect the vital public safety services our community depends on. Thank you for your time.
And that concludes public comment on this item. Thank
you. Other comments from the board? Supervisor Nelson.
Yes, thank you Chair Kaps. You know I appreciate the staff bringing this to the Board. If anybody had looked at my writings about this project back in the fall and end of last year I would like to It's far more productive to happen early than late. And unfortunately, because some parties just couldn't come to that agreement that we should start talking ahead of time. We're having these conversations now and we're finally having a discussion at the board about what should we be talking about these type of conversations? Because yes, property tax is piece of this but in annexations it's much bigger than that. Our services are funded by more than just property taxes And so in this area that is Keyside 26 Richard Ranch, it's a foundational part of the community plan that this county has invested a significant amount into.
So I just have some potential points that I would like to give some staff direction to include in the discussions with the city of Santa Maria because I think that these are, this is a context and that should be included. And so I actually wrote those out and I've made them available on the back. They're also made available online. I've got copies from my colleagues But I just have eight points of areas. Some of them are already covered and what staff is already addressing, and so I thank you staff for hearing that and addressing it already but I think that some of the things that there's a lot of substance and nuance here that I think are important about this conversation. So I just wanted to go through a few things as was brought up by I'm going to We have a plan on future infrastructure and the development impact fees that go to that.
This is a corner piece of that plan, but those still those infrastructure needs are still there. The residents of this property would still be using those infrastructures so development impact fees should match County rates and be paid to the county. All new developments should be required to participate in your community facilities district or the city should provide additional equivalent compensation to County for the CFD services Our property tax alone isn't what pays for fire service in the Orchard area. It's it's property tax plus the CFD, same thing for parks, same thing for sheriff. It is different than other places in the county and that's why it's important part of this conversation versus other tax change agreements where that may not be the same conversation they would be having My next point was property tax equity and rebalancing.
Evaluate the past tax exchange agreements to ensure full reimbursements for county services and impacts. You know, as we look at this is the first time that we're going to have a comprehensive discussion with the City of Santa Maria on tax exchange. And I think looking at the totality of the past conversations in the development changes since those have taken place for historical context as well as just balancing out those the services up for funding. I think would be really helpful for that discussion Um, Formalizing a reciprocal policy governing utility services between the county and the city I think is also an important part of that conversation. The reason why we're going down this route is because the city has been resistant to providing sewer, or sorry water to this project but you know, we need water and they need sewer.
You know those are two utilities there that are a part of this conversation and we should be working together. And so I think that needs to be a part of those conversations moving forward. I know the city's gonna be wanting to potentially access Our sewer system for some of their projects, this project specifically but also some of the adjacent projects in the area. So that needs to be a part of this conversation as it moves forward.
My last four points was if this project does move outside our community plan, the county's already invested in converting this ag ground into commercially zoned. So we need some support to maybe go find replacement properties in the future. And so I think that's part of the ongoing conversation if that happens, annexation should include support for the county efforts and funding to designate and plan new commercial zones for Orchid to have its autonomy and be a functional unit. It's a balance between residential, commercial and open space.
And this was part of that. If the city is going to annex that, I think we need to have a conversation and figure out how we're gonna move forward with replacing that Next item, deed restriction resolution. The project that's being presented to the city has an existing deed restriction that may prevent the project that they're proposing from actually taking place and that's something that needs to be discussed and I would hope that could be evaluated and potentially resolved prior to moving forward with annexation because if that can't be resolved Then we're actually all talking about a project that can't really actually move forward and the need for annexation may be moot. So it's something that's really important as part of these discussions again, these are nuances but this is our one chance to kind of get those out on the table.
My next one is development timeline and reversion clause. Include a clause reverting the property to the county if no development occurs within a reasonable time frame. The reason why I know a little bit about this is because this already happened in Orchid once before where the city annexed a commercial property, Keysight 25, in 2007. It was going to move forward with the commercial development.
City said hey we need to get water if we're gonna do that. We began that process It was annexed into the city and nearly 18 years later that ground has never been developed, which was a missed opportunity for the county to have prudential commercial tenants that we could have moved forward with. So if it doesn't move forward this project, I'd love to find a way for it to come back as an option for the county to be able to utilize that in part of our planning instead of blocking it out indefinitely. And the last one I think was already mentioned by staff but RENA you know we have the opportunity we've had this long conversation about RENA City Center has excess numbers of housing they can share and help balance our numbers out and so I think that should at least be part of that conversation moving forward Those are my eight topic areas, some rationales to get a little bit further into it or part of that.
And if we want to get to making a motion or I'd like to make a motion that when we staff recommendation that we add these to the conversation and negotiations with the City of Santa Maria.
2:31 – 2:3923 turns
Thank
you Supervisor
Nielsen.
Supervisor Hartman? On the RHNA, I think in the last cycle we explored whether a city could, whether the county could transfer to the city or back and if the law hasn't changed that was not allowed. Has the law changed on that?
We have transferred the credits in the past and we do expect to have a MOU to allow that.
For this development, we want to keep those credits. I guess I was reading this that you were thinking in a broader way.
Yeah so there's the potential to City of Santa Mara using their excess credits to transfer them to the county. So that's an option through this process. I'm hoping this can get explored. That's all what I'm asking for is explore these things, I'm not saying that those
make or break. I think when we're talking about the property itself that only makes sense because we plan based on that. When you talk about the broader it's a good idea, we tried it and the law wouldn't allow it so unless the laws changed but we'll explore it. I mean I'm supportive of that Can you elaborate on deed restrictions that you think exist there?
Sure, yeah. So the commercial components of this project have a deed restriction on it right now that prevent many of those uses and so that's something that still has not been resolved including the environmental document around this project Contemplates uses that are restricted through the deed. And so that's something that I've kind of constantly been bringing up, it's never been addressed. I think it's really important that it gets addressed because if it doesn't this property owner may be left with building a completely different project and And it may not be a product needed at that point, needed to be in the city. So I think that's why it's really important that it's dealt with as part of this conversation because I think it's really important.
As well as the EIR and traffic study that the city did was based on those uses so that needs to get resolved somewhere here for that environmental document to be something that is really, that fits. The developer says that they can do that and they just haven't yet so it's just something I like to see resolved as part of these discussions.
Yeah, well I think you've got a list of things to explore. If there were priority, I think the water and sewer service are you thinking again a broader MOU for future or?
Yes, so I'm thinking current and future. So you know Yeah, I think that absolutely through this discussion it may open up ideas and it may change the circumstances of this whole annexation those discussions And that's why I was hoping these things would be happening a year ago For whatever reason they haven't, but because we're sitting down at the table now because we legally have to. It's a good time for us to vet those things out because they are really important. You know this project you know if this city has to bring in sewer even for their adjacent projects it'd be very expensive just like so I think there's a kind of needs me some give-and-take and we need actually start to sit down and have those conversations looking forward to staff doing that and reporting back to us
So the city has water and the county has sewer.
That's right.
And so we both have
interests, and we need to work together. And that's really been the theme of you know I know some of my stuff has been taken my comments have been made taken out of context in the sense that you know my goal was always was to be working together to find solutions together not adversarially. And we haven't been able do that because we haven't been able to sit across the table to have those conversations And we're now there because of the LAFCO process and that's great, you know better late than never. And so I'm looking forward to some of these things to be discussed and brought back to us to see what kind of progress could be made to see if there's something that this board can accept as far as a tax exchange agreement can be done.
So if we support these, this direction it's not a command. It's asking to explore because I don't know that County Council and there are legal issues and things for saying you must and you can't then then we're already setting it up for failure so I think how you frame it is important
I think the one that I'm probably the most strong on is the fire district piece. I think that's gonna be really hard for us to, I can't imagine us coming to an agreement without that being addressed. We're literally going to build a station 400 yards away. We've purchased the ground, we've actually developed the station, and we have money set aside to do that capital project. That's gonna be really hard.
It's hard for me to be able to move forward with something that has this outside the fire district because we're right there. It doesn't make any sense, you know what we're supposed to be doing is making sure things that have who's best to deliver services well obviously if a fire station is 400 yards away it should be delivered by that fire station makes no sense to do something else now we have unified dispatch and all these other things now but we shouldn't We shouldn't build it incorrectly because we have those solutions. Those solutions are for the edges, and they shouldn't be for as an excuse to not do the right thing from the very beginning. So that's a big one for me but the rest of them I think are all negotiation points that we should be exploring to see what kind of deal is possible.
And like I said some of this is nuanced And I've had some conversations with staff, but because of the Brown Act, because that some of us are LAFCO commissioners and there's another layer of Brown Act. We need to have this conversation publicly so that it's really transparent that nothing's happening behind closed doors. And so that's why I'm having it out here before God and everybody to say here is the things that I'm concerned about. And I like the negotiators to look into these things as part of their discussions with the city.
Well, again I so I want to be clear about the process and how this comes back to us. So that I'm clear on what the motion is that we're making today because So could you explain that? If you negotiate and there's still some sticking points, will you just declare an impasse or will you come back and allow us to at least understand what those points are. What role does the board have going forward?
Supervisor Hartman through the chair. So we're planning to go through this process and see what we can agree to, and I think we'll need to see whether there are some areas that we can't agree or if maybe we have a whole proposal to bring forward to you. And so I think that will kind of depend on what we can get to with the city but it will still come back to you for your input at which point we can make any adjustments.
And who are you talking to at the city? What is the job title of the people who you're talking to?
Many people. Yeah, from the... Who's leading the discussion? Is it the City Manager? The City Manager, Assistant City Manager, their attorneys and kind of on down from there.
OK,
thank you.
2:39 – 2:4425 turns
Thank you, Madam Chair. So I'm interested in both these things. I support these they all make sense to me. I think the water sewer is something that we've got to fix moving forward just we both got to get off of our positions and try to find some common ground forward. And the deed restriction I think is also very very important But I'm also just as interested in the process of this, because I don't sit on LAFCO anymore. And the whole time I was there, I don't think we had an annexation. So it's kind of been 15 years. I think it's my first one. So I'm trying to figure out how the timeline works. So we're in negotiations right now. You've been given now some direction from our board of what we'd like to see.
So you go back together and you meet. How often do you meet?
Supervisor Labanino through the chair. We've met about every two weeks, so about seven times since April and we're meeting next week for an extended session.
And then how much more time do we have on the runway?
Officially July 26th which is why we have that motion to extend because there isn't a board
meeting
until August 19th.
Right and then let's just say I'm gonna be a little pessimistic for once that we don't exactly all agree on everything and it goes to an arbitrator, correct?
Yeah so we'll bring you know whatever we have to the board and perhaps there's some agreement. And you know through a little bit of a longer period we can come to an agreement or we can move into this mediation phase and then there's an arbitration phase.
Okay so mediations first and what is that just us getting in a room just like normally with I mean with our representatives getting into a room with a mediator. Is that binding
It everything has to be approved by the board and by the City Council so you can always reject whatever comes out of either of those phases and you could decide there's no agreement.
Okay, so there's no binding arbitration? No binding mediation nothing it's still at the discretion of the board
yes
and their city council.
Yes
okay thank you.
Supervisor Lee.
I just asked a question about the D restrictions as one more clarity are you talking about affordable housing kind of Yeah,
so this property is formerly owned by Walmart and when Walmart sold it they restricted it from having things that would compete with a Walmart. Well some of the project specifics like the grocery store compete with Walmart That's something that the developer can buy out from Walmart. They haven't not done that yet, again that's one of my concerns or get an exception from Walmart they've said that the Walmart might be willing to do maybe a specialty store but they've not been able actually get that in writing from them it's something I think needs to be resolved for the project to be materialized the way that it's been promised to the community
Okay, so just in terms of next steps here I know that the staff recommendation is just to allow for negotiation. Do we want to?
Could I try make a motion? Yeah please. Yeah so like we could have staff I would we adopt staff recommendation with the incorporation of the negotiating points that I had I have in my And I don't know if it's a memo in my paper here that I've presented and talked about. That's on the record as well as, I think I heard that extension for the third party piece but I would wanna further give you authorization to extend any of those sequences that might come up right? Because there's a few other ones in this process that might be ahead so I think we'll give you authorization to extend as necessary to continue conversations And that would be, so a staff recommendation with those two changes.
Does that make sense? Okay. Yes. That would be my motion.
Supervisor Lee.
I'll second his supervisor's
motion. Any questions or comments from the board on that motion? We good?
Right.
Okay, then it looks as though I'll just call for a vote. All those in favor? Aye. Motion carries as indicated. Thanks everybody. Thank you Supervisor Nelson Great. Well, yeah we're going to move on to departmental item six our last item of the day for open session before I moved to closed session so we are moving right along here ahead of schedule at noon and this should take us to closed session here so item number six Madam Clerk
2:44 – 2:499 turns
Chair Capps and members of the board, departmental item number six is from the County Executive Office. It is a hearing to consider recommendations regarding a third quarter fiscal year 2024 through 2025 update on cannabis taxation permitting licensing and enforcement.
Okay Miss Oderman. Thank you Chair Caps. Brittany Oderman deputy CEO and I'm joined here by our Cannabis Program Manager Carmela Beck and she will present today's report.
Thank you Ms. Oderman, good afternoon Chair Kaps and members of the board as mentioned I'll be presenting today's fiscal year 2024-25 quarter 3 cannabis taxation permitting licensing enforcement report. I'll touch I'll be touching on the following four topics including tax receipts and compliance land use permitting and business license activity enforcement of a legal activity and objectives for the upcoming quarters The Treasurer Tax Collector Office collected approximately $0.9 million in cannabis gross tax receipts in quarter three, for a total of $3.9 million collected to date.
Current Q3 collections were less than last year's third quarter. The fiscal year 2024-2025 adopted budget was $6.1 million. As of Q2 the projected revenue decreased to $5.4 million. The Treasurer Tax Collector Office provided a breakdown of cannabis tax revenue collection by category with the largest share of revenue coming from non-outdoor cultivation which includes operations in buildings, greenhouses and those who use artificial lighting at $505,000.
With regards to tax collection and reporting, we had 51 operators in Q3 who were required to report their gross receipts. Of the 51 operators only two operators did not report because they are not currently in operation. They do not hold state or county licenses. 18 of the 51 operators reported zero gross receipts because they did not harvest in Q3 and 31 of the 51 operators reported and made timely payments. All 51 operations are accounted for, there are no Q3 delinquent payments Planning and development is continuing with their land use permitting activities. The Carpinteria area allowed acreage cap is currently 186 acres, the issued permit acreage is presently 138 acres. The unincorporated inland area allowed acreage cap is currently 1,575 acres, the issued permit acreage is presently 1,190.
Staff will return to the board in August with proposed ordinance amendments to reduce the acreage cap to include all issued, approved and submitted acres in the queue to exclude processing acres. There are two cannabis projects on appeal. In addition there have been several actions taken on existing approved cannabis entitlements although no new entitlements were issued for new cannabis operations Since the Board's adoption of the odor abatement requirements in the Land Use Development Code and Article 2 of the Coastal Zoning Ordinance, and in Chapter 50, staff has identified 29 operators impacted by the newly adopted requirements.
Planning and development staff have received five odor abatement plans that require revisions. Eleven operators with filters already on site need to submit updated odor abatement plans. And the remaining 13 operators without filters on site also need to submit odor abatement plans. Staff is encouraging early submissions to allow ample time for review and revisions prior to the March 31st, 2026 installation deadline.
The Sheriff's Office is actively pursuing illegal
activity. They completed five enforcement actions in
the third quarter, six
pounds of dried product was
confiscated
at an estimated value of $3,600 and 1,566 processed products were confiscated
At an estimated value of $24,000. In closing the cannabis regulation and licensing team has identified three objectives for the upcoming quarters including one to finalize Chapter 50 board-directed acreage cap reduction ordinance amendments and to transition Sheriff's Chapter 50 licensing functions to another department. Two, to monitor and coordinate new odor abatement requirements pertaining to affidavits extensions and installation deadlines along with planning and development staff. And three, to continue to improve the business license application process.
Our recommended actions today are to receive an update on the fiscal year 2024-25 third quarter cannabis status report and to make a CEQA determination. Thank you that concludes our presentation
2:49 – 2:5422 turns
Thank you so much. Okay, any questions from the board? Supervisor Lee.
Good. Great report. Can you go back to page slice number six? I just want to confirm that there's not a typo on the Carpenter Act overlaying it says 186. I thought we recently lowered that number.
Thank You supervisor Lee through the chair. We're in the process of making the ordinance amendment will come back in August to make that update. Just making sure thank you.
Thank you for that. Supervisor Hartman
Could you go back to slide 4? So outdoor cultivation for this quarter is 75,881. Correct. Okay and what happens when people aren't cultivating for a period of time? What period of time, and then I think they lose their license. Could you remind me how that works? Their business license.
Let's see here. So Supervisor Hartman through the Chair, operators are permitted to follow their ground I believe it's an every third year process they all also there's the use it or lose it that's incorporated in Chapter 50 so they're required to get up to It's 80% of their total acreage or up to 100%, or they will have to drop down. We currently don't have operators that are impacted by the use it or lose it, so we don't have any loss there.
There is no... And if you'd like to restate your question if I'm not quite getting at the answer?
So we have two different aspects of that.
So following, operators are allowed to follow. Right. And they could take advantage of that every three years and then there's the use it or lose it clause and that was built in to allow so that people weren't sitting on acreage and so if there were people in the queue they would have be able to apply for that And currently we are not impacted by that, it is in place. And if operators are not achieving the totality of their acreage that they've been allocated then they will lose it back to the acreage cap.
But we don't see that and we don't see people following more than every three years, one in every three years? Correct
yeah we're still tracking and we're not in that place yet. And
how many operators in outdoor cultivation have voluntarily given up their business licenses?
You know, I don't have Supervisor Hartman through the chair. I don't have that number but we certainly are reducing their operators that have withdrawn or allow their license to expire. I can get that specific number to you but I don' t have it in front of me.
Okay yeah maybe next report could you incorporate that into your report? I think that would be useful
yes
and What do we know about market prices now? I mean, you all kind of track the industry and projections. And what can you tell us?
Supervisor Hartman through the chair. What we're seeing currently is prices sort of leveling off and so we don't anticipate things necessarily swinging back up I think they've stabilized there's a there's, a there was a general agreement across the state of California that were This is kind of where things are gonna be for a little bit based on supply and demand.
And so they are not as high as they once were, but they're not as low as they dropped in 22-23. So we've stabilized at the moment.
Okay that's good to hear.
Supervisor
Lee?
So the 18 operators that have no zero gross receipts, do you think they're waiting for the market to get better before they start operating again?
Supervisor Lee through the chair. Those operators, they just didn't harvest. They weren't... And so they are actively growing but they just didn't harvest in that window. So the January through March Q3 quarter.
Okay. Thank you.
2:54 – 2:5712 turns
Okay, any public comment? Madam Clerk. Chair Kaps and members of the board we have no requests to speak from the public on this item
Okay, well I just had a comment. I just want to appreciate the work we spent a lot of time on cannabis lately so don't need to belabor this report but it just affirms the steps that we've taken that this board has taken as recommended by staff to really right-size the program. I also just want to acknowledge the grand jury's report recently that really called for a lot of the things that we are now enacting and we'll get to that later when we address the grand jury's report more in full but which shows where we're aligned and so appreciate staff with this report And with that I will take a motion.
I'll move staff recommendation A through C.
Okay all those in favor? Aye. Motion carries okay it is 1215 we have closed session items, I believe it's about an hour so is that correct County Council?
Madam Chair and members of the board. I think we could do it a little faster than that actually, I would say 30 to 45 minutes including lunch okay then we will aim to be back at one by 1
o'clock to adjourn
but
you can read us out
please sure in closed session the board is scheduled to hear one item of existing litigation Jacobson versus Santa Barbara County Health And that's before the Santa Barbara County Civil Service Commission, as well as two items of real property negotiations. 17-100 Cala Mariposa Reina at Gaviota Agency Negotiator General Services Director Kirk Lagerquist negotiating party David Rose The second property is 16899 Highway 101 in Goleta.
Agency negotiator is again Kirk Lagerquist and negotiating party is Walid Mazri, and for both under negotiation are price and terms
Okay
see you at one
o'clock We are back from closed session. County Council, please give us the results.
2:57 – 2:582 turns
Thank you Madam Chair and members of the board. The board met in closed session on one item of existing litigation Jacobson versus Santa Barbara County Health and two items of real property negotiations for the items listed in the agenda and the board took no reportable action
Okay well with that we will adjourn until July 15th. I hope everybody has a very safe 4th of July weekend and we will be back Tuesday, July 15th We are adjourned