Santa Cruz County, CA

- THANK YOU. THANK YOU, ELISE.

THANK YOU, MR. MORRIS.

MAYBE JUST HOLD THERE AND I'LL TELL YOU WHEN TO PROMPT.

SO GOOD MORNING, CHAIR HERNANDEZ, MEMBERS OF THE BOARD.

THOSE HERE IN WATSONVILLE CITY COUNCIL CHAMBERS AND ONLINE WATCHING.

AS ELISA DESCRIBED, THE IMPACT SPECIFICALLY UNDER FEDERAL AND STATE ACTIONS TO THE HEALTHCARE DELIVERY SYSTEM AND THE FOOD INSECURITY SYSTEM YOU HAVE IN FRONT OF YOU, AND I'LL TELL YOU WHY I'M GOING FIRST YOUR HEALTH AND HUMAN SERVICES DIRECTOR, WE'RE THE PREDOMINANT COUNTY SAFETY NET AND OUR COMMUNITY PARTNERS THAT WORK WITH US, AND ONLY TOGETHER CAN WE MITIGATE TO THE BEST OF OUR ABILITY WHAT I'M ABOUT TO SHARE.

THE REASON WE DECIDED IN THIS PRESENTATION TO HAVE HUMAN SERVICES GO FIRST, AND THIS IS JUST A BIT OF A LEVEL SET FOR THOSE WHO DON'T KNOW THIS, THE FEDERAL MEDICAID, CALIFORNIA MEDI-CAL PROGRAM, THE FEDERAL SNAP SUPPLEMENTAL NUTRITION AND ASSISTANCE PROGRAM CALIFORNIA CALFRESH PROGRAM, THE FEDERAL GOVERNMENT MANDATES THAT ONLY A PUBLIC SYSTEM CAN DETERMINE ELIGIBILITY, ENROLL AND RENEW INTO THOSE TWO PROGRAMS, AND A SINGULAR PUBLIC ENTITY IN EACH STATE HAS TO BE IDENTIFIED TO DO THAT WORK.

CALIFORNIA AND MOST STATES HAVE THAT HUMAN SERVICES AND IT'S OUR ELIGIBILITY OR WE CALL IT BENEFIT REP WORKFORCE.

SO BECAUSE WE ARE THE ENTITY BY FEDERAL AND STATE LAW RESPONSIBLE IN OUR EMPLOYMENT AND BENEFIT SERVICES DIVISION TO DO THE DETERMINATIONS, WE HAVE TO ADMINISTER AND SHOULDER THESE CHANGES IN PARTNERSHIP WITH EVERYBODY WHO WILL FOLLOW ME.

SO MS. BENSON, IF YOU CAN GO TO THE NEXT SLIDE.

THIS PICTURE IS A LOT.

BUT IT IS OUR BEST EFFORT AND I AM NOT GOING TO TELL YOU HOW MANY ITERATIONS OF THIS, WHICH WERE MUCH MORE COMPLEX, WE HAVE DISTILLED DOWN TO WHAT WE THINK IS THE MOST DIGESTIBLE.

I AM NOT PLANNING TO GO THROUGH THIS IN DETAIL.

THIS POWERPOINT SLIDE IS OR WILL BE POSTED PUBLICLY,

[00:50:02]

OPEN TO QUESTION AND ANSWER DURING THE BOARD DELIBERATIONS.

BUT THE PURPOSE OF SHARING THIS WITH YOU IS MAYBE TO SORT OF SUPPLEMENT WHAT MS. BENSON SAID IN HER INTRODUCTION.

THIS IS A PICTURE OF THE VOLUME DEPTH AND COMPLEXITY OF WHAT'S COMING.

I'M JUST GOING TO SHARE WITH YOU A VISUAL LEGEND, AND THEN I'M GOING TO GO DEEPER ON THE MEDICAID AND THE CALFRESH PROGRAMS. THE TOP OF THIS IS THE MEDI-CAL AND HEALTH COVERAGE SYSTEM.

THE BOTTOM IS CALFRESH.

FROM LEFT TO RIGHT IS THE FOUR SUCCESSIVE YEARS WHEN THESE CHANGES HAPPEN.

AND THEN COLOR CODES, THE RED OR ORANGE BOXES ARE FEDERAL CHANGES.

THE BLUE BOXES ARE STATE CHANGES AND THE GREEN SHADOW BOXES ARE THOSE THAT HAVE BUDGET IMPLICATIONS.

THESE ROLL OUT, THEY'RE COMPLEX, THEY'RE OVERWHELMING.

WE DID NOT CREATE THIS.

WE ARE THE MESSENGERS TO TELL YOU THIS IS THE CROSSWALK OF FEDERAL HR1 BOUNCED AGAINST, CROSSED WALKED AGAINST STATE BUDGET AND POLICY ACTIVITIES.

SO TODAY'S PRESENTATION IS ATTEMPT TO EXPLAIN THIS PICTURE TO YOU, BUT THIS IS WHAT WE ARE LOOKING AT.

SO NEXT SLIDE.

- I'M TRYING.

- WE SEE.

- THERE WE GO. - OKAY. - THANK YOU.

- I ONLY HAVE ONE SLIDE ON MEDI-CAL OR MEDICAID AND THEN ONE SLIDE ON SNAP OR CALFRESH.

BUT BEFORE GETTING TO THOSE, I WANT TO DO A VERY SIMPLE LEVEL SET FOR THOSE WHO DON'T LIVE AND WORK IN THIS SPACE BECAUSE THIS IS A THROUGH LINE IN TERMS OF MINIMUM ELIGIBILITY FOR THESE TWO PROGRAMS. THE FEDERAL POVERTY LEVEL OFTEN REFERRED TO AS FPL, WAS ESTABLISHED WHEN THE FEDERAL GOVERNMENT ESTABLISHED THE SOCIAL SECURITY ACT, WHICH IS WHAT INITIATED THE FEDERAL POVERTY LEVEL AS A METRIC TO IDENTIFY WHO MAKES WHAT AMOUNT OF INCOME IN THE UNITED STATES OF AMERICA IS ELIGIBLE FOR THESE SAFETY NET PROGRAMS. SO THIS WAS ESTABLISHED IN 1965.

IT IS ADJUSTED ANNUALLY BY THE FEDERAL GOVERNMENT, INFLATION ONLY, AND IT IS THE SAME LEVEL ACROSS THE ENTIRE 48 CONTIGUOUS STATES.

THERE ARE DIFFERENCES IN HAWAII AND ALASKA, BUT IN THE 48 CONTIGUOUS UNITED STATES, THE FPL LEVEL IS THE EXACT SAME.

JUST FOR FUN, I GOOGLED OVER THE WEEKEND TO CONFIRM MY UNDERSTANDING.

WHAT COUNTY IN THE UNITED STATES OF AMERICA HAS THE MOST EXPENSIVE RENTAL MARKET? DING, DING, DING, SANTA CRUZ COUNTY.

WHAT COUNTY IN THE UNITED STATES OF AMERICA HAS THE LEAST EXPENSIVE RENTAL MARKET? AND IT SAYS IT'S A COMPETITION BETWEEN WEST VIRGINIA AND NORTH DAKOTA.

SO TO NAME THE IMPACT ON HUMAN BEINGS IN THOSE LOW RENTAL MARKETS WHERE RENT COULD BE $400 A MONTH THE SAME INCOME MAKES YOU ELIGIBLE FOR THESE FEDERAL PROGRAMS AS IF YOU LIVE IN SANTA CRUZ COUNTY WHERE YOU, GOOD LUCK FINDING SOMETHING UNDER 2,000.

SO THAT'S JUST FEDERAL LEVEL SET, THE FEDERAL POVERTY LEVEL IS THE SAME.

AND AT THE BOTTOM, THIS HIGHLIGHTS WHAT THAT IS.

IF YOU ARE A SINGLE INDIVIDUAL AND YOU MAKE MORE THAN $15,000, AND $15,060, YOU ARE INELIGIBLE FOR THESE PROGRAMS. 15,000, THAT'S ABOUT $1,200 A MONTH.

IF YOU'RE A FAMILY OF FOUR, YOU CANNOT HAVE INCOME OVER $31,000 AND TO JUST EMPHASIZE A POINT, TO PIGGYBACK ON SOMETHING MS. BENSON SAID EARLIER, PEOPLE WHO MAKE INCOME LESS THAN THIS ARE BEING ASKED TO HAVE CALFRESH BENEFITS TAKEN AWAY FROM OR LESSENED.

AND PEOPLE WHO MAKE THIS MUCH WHO HAVE HEALTHCARE FUNDED THE PUBLIC ARE BEING ASKED TO GIVE UP THEIR HEALTHCARE IN ORDER TO EXTEND TAX BREAKS TO UPPER INCOME AND TO PAY FOR ICE.

THAT IS WHAT WE ARE, THAT IS THE UNITED STATES OF AMERICA TODAY.

AND I HOPE MY PAUSE AND SLOWING DOWN AND PUTTING AN EMPHASIS, THIS IS WHO IS SACRIFICING TO EFFECTUATE THOSE FEDERAL CHANGES BY THE NARROWEST OF MARGINS IN CONGRESS AND THE SENATE.

SO NEXT SLIDE.

THIS TOO IS AN EFFORT TO EXPLAIN, WE COULD HAVE AN ENTIRE GRADUATE SCHOOL COURSE ON THE MEDI-CAL PROGRAM, BUT THIS IS AN ATTEMPT TO EXPLAIN IT IN ONE PICTURE TO JUST HAVE A FRAMEWORK TO UNDERSTAND WHAT CHANGES ARE GONNA BE EFFECTUATED.

SO IN THE UPPER LEFT CORNER, WE HAVE APPROXIMATELY 78,000 INDIVIDUALS IN SANTA CRUZ COUNTY CURRENTLY ON THE MEDI-CAL PROGRAM.

IT WAS AT A HIGH OF IN THE MID 90 THOUSANDS OVER IN COVID WHEN THERE WAS WAIVERS FROM THE FEDERAL GOVERNMENT THAT NOBODY HAD TO RENEW THEIR MEDICAL ELIGIBILITY EVERY YEAR.

BUT AS THOSE WAIVERS HAVE ENDED AND COVID HAS WANED WE'RE AT ABOUT 78,000.

IF YOU SEE IN THE UPPER RIGHT CORNER, THERE ARE 40,000 PEOPLE OF THE 78,000 PEOPLE WHO ARE IMPACTED BY THE CROSSWALK OF FEDERAL AND STATE CHANGES.

LET ME TAKE A MINUTE.

[00:55:02]

THERE ARE 100 MEDI-CAL AID CODES.

THIS IS JUST ORGANIZING THEM THREE BUCKETS TO SORT OF HELP YOU TRACK BECAUSE THIS IS THE BEST WAY I CAN EXPLAIN SORT OF HOW THESE IMPACTS ARE IMPACTING THESE DIFFERENT COHORTS DIFFERENTLY.

SO FIRST OF ALL, THE BLUE PIE SLICE IS WHAT'S OFTEN REFERRED TO AS CLASSIC MEDI-CAL.

CLASSIC MEDI-CAL IS WHAT WAS ESTABLISHED IN 1965, TITLE 19 OF THE SOCIAL SECURITY ACT.

THIS IS WHEN THE FEDERAL POVERTY LEVEL WAS CREATED, AND THIS IS THE ONLY HEALTH COVERAGE AVAIL IN THE COUNTRY BEFORE THE GREEN AND THE YELLOW PIE SLICES WERE ADDED.

AND I'LL EXPLAIN WHAT CLASSIC MEDI-CAL IS.

INDIVIDUALS OR FAMILY UNITS HAVE TO BE UNDER THE FEDERAL POVERTY LEVEL, BUT TWO MORE THINGS.

YOU HAVE TO BE WHAT'S CALLED CATEGORICALLY LINKED, AND THAT IS BECAUSE POLICY IN THE 1960S WAS INDIVIDUALS WHO DON'T HAVE CHALLENGES NEED TO BASICALLY FIGURE OUT HOW TO SORT OF GET INCOME AND GET THEIR OWN HEALTH CARE.

SO CERTAIN PEOPLE WERE EXEMPT AND ELIGIBLE FOR THIS PROGRAM, SUCH AS AGED OVER 65, BLIND, VISUALLY IMPAIRED, DISABLED, PREGNANT, OR PARENTING.

SO BEFORE 2014, WHEN THE AFFORDABLE CARE ACT WAS PASSED, YOU HAD TO BE IN ONE OF THOSE CATEGORIES.

YOU HAD TO BE BELOW THE INCOME LEVEL.

AND THERE WAS AN ASSET LIMIT.

YOU COULD NOT HAVE MORE THAN $2,000 OF ASSETS.

THERE WAS EXEMPTIONS LIKE A HOME, AND IT'S VERY COMPLICATED.

YOU HAD TO SPEND DOWN YOUR ASSETS TO GET BELOW $2,000.

YOU HAD TO BE IN ONE OF THOSE CATEGORIES.

YOU HAD TO BE BELOW THAT INCOME, AND YOU ARE ELIGIBLE FOR FEDERAL MEDICAID, CALIFORNIA MEDI-CAL.

MANY DEEP, DEEP RED STATES DO NOT HAVE THIS GREEN PIE SLICE NOR THE YELLOW PIE SLICE.

SO THEREFORE, THEY ARE NOT THAT IMPACTED BY HR1.

WE CAN TALK ABOUT THAT IF YOU WANT A QUESTION AND ANSWER.

AFFORDABLE CARE ACT 2014, PRESIDENT OBAMA CLOSED A SIGNIFICANT GAP.

PEOPLE WHO ARE VERY, VERY LOW INCOME BUT ARE NOT CATEGORICALLY LINKED AND THINK ABOUT THE UNSHELTERED POPULATION, INELIGIBLE FOR FEDERALLY FUNDED HEALTH CARE.

2014, THAT GAP WAS CLOSED BY THE AFFORDABLE CARE ACT.

IT ALSO ELIMINATED THE ASSET TEST AND YOU DID NOT HAVE TO HAVE A CATEGORICAL LINKAGE.

THEREFORE, THERE WAS AN INEQUITY BETWEEN CLASSIC MEDI-CAL AND AFFORDABLE CARE ACT MEDI-CAL BECAUSE IF YOU WERE CLASSIC MEDI-CAL ELIGIBLE, YOU HAD TO HAVE BELOW A CERTAIN NUMBER OF ASSETS BUT IF YOU'RE ACA ELIGIBLE, YOU DID NOT.

THERE WAS A PROBLEM IN CALIFORNIA WORK TO SOLVE THAT BY OVER A SUCCESSION OF YEARS ELIMINATING THE ASSET TEST ON CALIFORNIA DOLLAR.

AND THEN THE FINAL IS NEW LANGUAGE, UNSATISFACTORY IMMIGRATION STATUS.

THAT IS A BUCKET, UMBRELLA TOPIC, HAS A LOT OF CATEGORIES, CERTAIN ASYLEES, REFUGEES, BUT THE ONE WE TALK ABOUT THE MOST IS UNDOCUMENTED IMMIGRANTS.

CALIFORNIA WAS ONE OF THE FIRST, I THINK MAYBE SECOND, IN THE STATE TO MAKE ALL UNDOCUMENTED IMMIGRANTS ELIGIBLE FOR MEDI-CAL.

WE HAVE A GREAT SUCCESS RATE IN DOING THAT, AND THANKS TO PARTNERSHIPS LIKE CAB AND OTHERS WHO HAVE SPOKE EARLIER TODAY.

THAT IS CALIFORNIA DOLLAR ONLY.

CALIFORNIA HAD TO FIND MONEY TO PAY FOR THE CARE BECAUSE THE FEDERAL GOVERNMENT DOES NOT PARTICIPATE BUT FOR THINGS LIKE PREGNANCY SERVICES AND EMERGENCY SERVICES.

SO WHAT ARE THE CHANGES? ON THE BOTTOM, A QUICK SUMMARY.

CLASSIC MEDI-CAL, CALIFORNIA ELIMINATED THE ASSET TEST.

IT COULD NOT AFFORD THAT ANYMORE.

IT REINSTATED THE ASSET TEST WHICH MEANS SOME PEOPLE WHO ARE NOW ON CLASSIC MEDI-CAL BECAUSE OF THAT CALIFORNIA ACTION WILL NO LONGER BE ELIGIBLE BECAUSE THEIR ASSETS ARE TOO MUCH.

THIS PARTICULARLY IMPACTS A LOT OF OLDER ADULTS WHO MIGHT HAVE ASSETS, BUT NOT A LOT OF INCOME.

THIS IS SIGNIFICANT.

AFFORDABLE CARE ACT.

THIS IS NO SURPRISE.

THE CURRENT FEDERAL ADMINISTRATION FOCUSED ON UNRAVELING MANY OF THE ASPECTS OF THE AFFORDABLE CARE ACT.

IN FUTURE YEARS, THERE WILL BE SIX MONTH RENEWALS TO REDETERMINE ELIGIBILITY INSTEAD OF YEARLY, WORK REQUIREMENTS, AND CO-PAYS.

THAT'S ALL FEDERAL ACTION.

THAT IMPACTS EVERY SINGLE PERSON IN THE GREEN BUCKET.

AND LAST BUT NOT LEAST UNSATISFACTORY IMMIGRATION STATUS.

CALIFORNIA IN THE LAST BUDGET CYCLE COULD NOT AFFORD TO CONTINUE TO HAVE AN OPEN-ENDED ENROLLMENT PERIOD.

THEY DID A FREEZE.

THEY'VE MADE SOME COVERAGE CHANGES, WHICH I ANTICIPATE MY PARTNERS WILL TALK ABOUT.

AND THEY'VE ADDED MONTHLY PREMIUMS. SO OVER HALF OF PEOPLE ON SANTA CRUZ COUNTY MEDI-CAL ARE GOING TO BE ADVERSELY IMPACTED.

NOW TO SNAP, MS. BENSON.

SNAP IS THE FEDERAL NAME OF CALIFORNIA'S CALFRESH PROGRAM.

CALIFORNIA LOVES TO PUT CAL IN FRONT OF EVERYTHING AND CHANGE IT SO WE ARE CALFRESH.

WE HAVE ABOUT 35,000 PEOPLE ENROLLED IN CALFRESH.

ELIGIBILITY FOR CALFRESH IS DETERMINED BY A HOUSEHOLD COMPOSITION, NOT AN INDIVIDUAL.

THAT'S ONE OF THE REASONS THERE'S SO MANY FEWER PEOPLE.

YOU CAN HAVE A HOUSEHOLD OF PEOPLE ALL WITH LOW INCOME, BUT IN AGGREGATE, IF IT'S ABOVE THE FEDERALLY POVERTY LEVEL, THEY'RE NOT ELIGIBLE.

[01:00:02]

IF YOU LOOK ON THE RIGHT, THERE IS MUCH FEWER PEOPLE IMMEDIATELY IMPACTED.

JUST OVER 20% ARE NOW GOING TO BE REQUIRED TO PARTICIPATE IN WORK REQUIREMENTS.

AND THERE IS A VERY SMALL SLIVER OF 0.5% WHO THE CURRENT FEDERAL ADMINISTRATION HAS DEEMED ELIGIBLE FOR PUBLIC SAFETY NET PROGRAMS AND THAT CERTAIN REFUGEES AND ASYLEES WHO HAVE BEEN MOVED INTO UNSATISFACTORY IMMIGRATION STATUS WILL BE DISENROLLED.

OF THE STATUS QUO, IT IS TO BE DETERMINED HOW MANY IN THE STATUS QUO WILL REDUCE THEIR BENEFIT OR BECOME INELIGIBLE SO IT'S AT LEAST 7,000 PEOPLE IMPACTED.

LAST COMMENTS, IF YOU LOOK IN THE UPPER LEFT CORNER, SOME LEVEL SET ABOUT FUNDING AND IMPACT.

FOR DECADES, THE FEDERAL GOVERNMENT HAS PAID FOR 50% OF THE COST OF STAFFING.

ALL OF THOSE BENEFIT REPS THAT WE HAVE IN OUR STAFF WHO WORK THE LOBBIES, WORK THE CALL CENTERS, WORK IN THE BACK OFFICE TO DETERMINE AND ENROLL PEOPLE THAT IS PAID 50% BY THE FEDS AND THE STATE AND COUNTIES HAVE A COST SHARE.

GOING FORWARD, THE FED IS SHIFTING THAT 50% SHARE TO 25.

THAT MEANS THE STATE HAS TO DISTRIBUTE 75% BETWEEN THEIR BUDGET AND THE COUNTY.

WE ANTICIPATE IN THE BOTTOM 1.6 MILLION OF NEW REVENUE NEEDED TO JUST KEEP OUR SERVICES AS IS.

BENEFITS THE CALFRESH BENEFIT EBT CARD THAT PEOPLE HAVE THAT THEY CAN GO USE TO PURCHASE FOOD THAT IS 100% FEDERALLY FUNDED.

FUTURE YEARS PART OF HR ONE, THE FEDERAL GOVERNMENT HAS SAID IF STATES HAVE ERRORS ABOVE A CERTAIN LEVEL, YOU HAVE TO PAY A SHARE OF COST AND TODAY'S SHARE OF COST, IF THE CALIFORNIA ERROR RATE HOLDS IS 15%, THAT WOULD BE $11.5 MILLION.

AND IF THE STATE AND FUTURE STATE LEGISLATIVE ACTION DECIDES THAT THE COUNTIES HAVE TO SHOULDER THAT, 'CAUSE THE COUNTIES ARE MAKING THE ERRORS WE WOULD HAVE TO COME UP WITH $11.5 MILLION FOR THAT 15%.

SO THESE ARE MASSIVE.

I'LL END WITH THE IMMEDIATE IMPACT.

IF YOU LOOK AT, THERE'S CURRENTLY ABOUT $77 MILLION OF CALFRESH BENEFITS FLOWING INTO THE POCKETS OF LOW INCOME PEOPLE IN OUR COMMUNITY, PURCHASING FOOD IN OUR COMMUNITY.

THERE IS AN ANTICIPATED 20 PLUS PERCENT REDUCTION OF THAT BENEFIT COMING INTO THE POCKETS OF LOW-INCOME PEOPLE CALCULATED IN FUTURE YEARS TO BE UP TO $16.8 MILLION OF REDUCED REVENUE FLOATING THROUGH OUR ECONOMY TO PURCHASE FOOD BY LOW-INCOME PEOPLE.

SO THAT WILL HAVE AN IMPACT ON THE ECONOMY, AND YOU CAN JUST SEE WHAT THESE BENEFIT LEVELS ARE.

MINDFUL OF THAT FEDERAL POVERTY LEVEL 292 A MONTH FOR AN INDIVIDUAL 975 FOR A FAMILY OF FOUR.

SO I'M GONNA PAUSE THERE.

THIS IS A LOT, WE LOOK FORWARD TO PUBLIC COMMENT QUESTIONS FROM YOUR BOARD, BUT I JUST WANT TO TAKE A MOMENT TO HIGHLIGHT NOT ONLY MY HEALTHCARE PARTNERS WHO WILL GO LAST CALL 'EM OUR COUSINS HEALTH IMPROVEMENT PARTNERSHIP.

BOTH HEALTH AND HUMAN ARE DUES PAYING MEMBERS, BUT THEN I WANNA END WITH ERICA, THE FOOD BANK IS THE MOST CRITICAL COMMUNITY PARTNER IN FOOD INSECURITY, AND I HOPE YOU'LL HEAR IN ERICA'S PRESENTATION OF THE WORK WE'RE DOING TOGETHER BECAUSE PEOPLE WHO ARE IMPACTED BY CALFRESH REDUCTIONS ARE SYMBIOTICALLY GONNA BE DEALING WITH COMING TO BOTH OF US, FIGURING OUT WHAT TO DO.

SO THANK YOU FOR THE PARTNERSHIP, ERICA AND I TURN IT TO YOU.

- THANK YOU, RANDY, AND GOOD MORNING MEMBERS OF THE BOARD OF SUPERVISORS.

FIRST OF ALL, IT'S GREAT TO SEE YOU IN WATSONVILLE.

MY BRIEF PRESENTATION TODAY, I HOPE WILL GIVE YOU INSIGHT AS TO YOUR FOOD BANK, HOW IT OPERATES.

AND GO INTO DEPTH AS TO HOW WE ARE PREPARING FOR THESE IMPACTS THAT RANDY JUST HIGHLIGHTED.

OH, BEFORE I MOVE FORWARD, I WANNA TAKE A MINUTE AND JUST THINK SUPERVISOR DESERPA AND ASSISTANT CEO, NICOLE COBURN, WHO SPENT LAST WEDNESDAY WITH US.

AT OUR CHEF'S DINNER.

AND THANK YOU SUPERVISOR HERNANDEZ FOR ATTENDING.

A LOT OF WHAT WE DO AT YOUR FOOD BANK IS FUNDRAISING TO MAKE SURE THAT WE CAN PROCURE THE FOOD AND PAY FOR THE COSTS ASSOCIATED WITH DISTRIBUTING FOOD.

AND THIS EVENT WAS A VERY IMPORTANT ONE FOR OUR CHILDREN.

SO THANK YOU FOR YOUR TIME.

I WANNA START BY JUST ELEVATING OUR MISSION FOR 53 YEARS YOUR FOOD BANK, WHO IS THE FIRST FOOD BANK IN THE STATE OF CALIFORNIA, YOU SHOULD ALL BE VERY PROUD THAT THE FOOD BANK MOVEMENT STARTED RIGHT HERE.

WE'VE BEEN FOCUSED ON MAKING SURE THAT WE BUILD A THRIVING COMMUNITY WHERE EVERYONE HAS ACCESS TO NUTRITIOUS FOOD AND ESSENTIAL SERVICES TO SUPPORT THEIR HEALTH AND WELLBEING, AND THIS IS WHO WE ARE AND WHAT DRIVES WHAT WE DO EVERY DAY.

I'M HOPEFUL THAT IN THE NEXT FEW SLIDES, YOU HAVE A BASIC UNDERSTANDING OF HOW OUR FOOD SECURITY SYSTEM WORKS.

THERE IS A RELATIONSHIP BETWEEN RANDY'S TEAM

[01:05:01]

AND YOUR FOOD BANK AND ITS ASSOCIATED PARTNERS WHO I WILL HIGHLIGHT IN A FEW MINUTES.

I WANNA TALK ABOUT, OF COURSE, THOSE CUTS THAT RANDY HIGHLIGHTED AND WHAT THAT MEANS TO FOOD BANKS AND WHAT IT MEANS TO THE FOOD DISTRIBUTION AVAILABILITY THROUGHOUT THE COUNTY.

I WANNA TALK A LITTLE BIT ABOUT HOW SECOND HARVEST HAS ALREADY BEEN IMPACTED, AND WHAT THAT MEANS AND WHAT WE'RE DOING ABOUT IT.

AND THEN OF COURSE, I'M HOPEFUL THAT MY CONVERSATION OR PRESENTATION WITH YOU HELPS YOU ELEVATE CONVERSATION ABOUT THE FOOD BANK AND ITS NETWORK PARTNERS AS YOU DELIBERATE, YOU KNOW WHERE YOU'RE GOING TO BE INVESTING IN FUTURE MONTHS AHEAD, AND IT'S GOING TO BE A TOUGH CONVERSATION.

I WANNA JUST TALK A LITTLE BIT ABOUT, WHEN I SAY THE WORD NETWORK, WHAT DO I MEAN? AND IT'S IMPORTANT FOR YOU TO KNOW THAT FOOD BANKS ARE HIGHLY ORGANIZED NATIONALLY.

SO AT THE NATIONAL LEVEL, WE ARE ORGANIZED THROUGH FEEDING AMERICA.

THIS IS OUR SISTER ORGANIZATION WHO WE WORK WITH TO DO A LOT OF ADVOCACY WORK AROUND FOOD SECURITY OF ALL PROGRAMS IN OUR NATION, AND THAT INCLUDES SCHOOL PROGRAMS, IT INCLUDES MEALS ON WHEELS.

WE GET INVOLVED IN ADVOCATING FOR FULL FUNDING AND EXPANSION AS NEEDED FOR THOSE PROGRAMS. UNFORTUNATELY, WE WERE NOT SUCCESSFUL THIS TIME AROUND IN OUR ADVOCACY EFFORTS TO PRESERVE SNAP, AS RANDY HIGHLIGHTED THE IMPACTS OF THAT.

THROUGH OUR STATE ASSOCIATION, MOST STATES ACROSS THE NATION HAVE THEIR OWN STATE ASSOCIATION, AS YOU CAN IMAGINE, THAT IS OUR SISTER ORGANIZATION WHERE WE DO ALL THINGS STATE ADVOCACY.

THERE IS A KEY PROGRAM IN CALIFORNIA THAT FUNDS FOOD BANKS IT'S CALLED CALFOOD.

IT IS THE ONLY PROGRAM THAT FUNDS YOUR FOOD BANKS.

AND I WILL SAY THAT PRE PANDEMIC, THE STATE INVESTED $8 MILLION IN THAT PROGRAM, OVER 41 FOOD BANKS.

SO YOUR FOOD BANK GOT LESS THAN $50,000 FROM THAT DO RIGHT? IT'S MINIMAL.

DURING THE PANDEMIC, OF COURSE, WE SAW, AN INCREASE IN STATE INVESTMENT THROUGH THAT PROGRAM, AND YOUR FOOD BANK WAS ABLE TO SECURE ABOUT HALF A MILLION DOLLARS A SIZABLE CONTRIBUTION FROM THE STATE.

I WANNA GIVE THANKS TO RANDY AND HIS COLLEAGUES ACROSS THE STATE WHO ADVOCATED RECENTLY BEFORE THE PASSAGE OF THE BUDGET THAT THE GOVERNOR HAS SIGNED WHERE BECAUSE OF ALL THESE CUTS THAT HAVE ALREADY IMPACTED PEOPLE, THE STATE ALLOCATED AN ADDITIONAL 20 MILLION TO THIS YEAR'S CALFOOD BUDGET.

IT WAS VERY, VERY HUMBLING TO KNOW THAT A LOT OF ASSOCIATIONS STATEWIDE ADVOCATED FOR THIS BECAUSE THEY RECOGNIZE THAT FOOD BANKS WILL BE IN THE FRONTLINE.

AND THEN LASTLY, I WANNA TALK ABOUT OUR COUNTY NETWORK IN YOUR COUNTY.

WE HAVE A NETWORK OF 67 PARTNER AGENCIES THAT WORK WITH US, MEANING THEY'RE CONTRACTUALLY CONNECTED TO US TO PROVIDE DISTRIBUTION OF FOOD THROUGHOUT EVERY CORNER OF THE COUNTY.

AND I WANNA JUST THANK OUR FIVE PARTNERS WHO ARE HERE TODAY WHO WILL BE SPEAKING WITH YOU DURING PUBLIC COMMENT.

SANTA CRUZ COMMUNITY HEALTH CENTER, SANTA CRUZ BIBLE CHURCH RESURRECTION CHURCH, MONARCH SERVICES AND VALLEY CHURCHES UNITED.

THEY'LL BE ADDRESSING YOU DURING PUBLIC COMMENT.

WE HAVE 106 DISTRIBUTION SITES THROUGHOUT THE COUNTY.

AGAIN, 67 PARTNER AGENCIES HELP US ENSURE THAT FOOD GETS TO ALL THESE DIFFERENT SITES, INCLUDING THE OWN STAFFING TEAM AT SECOND HARVEST.

I THOUGHT YOU WOULD LIKE TO KNOW THAT 19 PARTNER AGENCIES ARE DEDICATED TO SERVING THE UNDER, UNINCORPORATED AREA OF THE COUNTY.

I KNOW SOME OF YOU REPRESENT VAST AREAS IN THE UNINCORPORATED AREA.

I ALSO WANNA JUST SHARE THAT OUR NUMBER OF PARTICIPANTS SERVED EVERY MONTH VARIES BASED ON SEASONAL IMPACTS.

SO FOR EXAMPLE, IN FEBRUARY I JUST LOOKED AT OUR PARTICIPATION DATABASE, OVER A HUNDRED THOUSAND PEOPLE IN THE COUNTY BENEFITED FROM FOOD BANKS, FOOD DISTRIBUTIONS.

IF YOU LOOK AT JUNE, IT DECREASED TO 79,000 PEOPLE, AND THAT'S BECAUSE LIKELY THE AGRICULTURAL SEASON KICKED IN WHICH MEANS THAT PEOPLE HAD ACCESS TO MEANS TO BE ABLE TO PROCURE FOOD.

ON AVERAGE, LAST FISCAL YEAR, WE WERE SERVING 73,000 PEOPLE PER MONTH.

WE EXPECT, JUST BASED ON MY QUICK ANALYSIS OF COMPARISON OF THIS FEBRUARY, 2025 TO FEBRUARY 2024,

[01:10:01]

WE SAW A 30% INCREASE IN ONE YEAR.

SO I SUSPECT THAT MONTHLY AVERAGE AT THE CONCLUSION OF THIS FISCAL YEAR WILL BE MUCH HIGHER.

AND A LITTLE FOOTNOTE FOR THOSE INDIVIDUALS WHO LIVE IN THE UNINCORPORATED AREA, AS OF THE MOST CURRENT PARTICIPATION DATABASE, PARTICIPATION DATA, 29,570 PEOPLE WHO LIVE IN THE UNINCORPORATED AREA BENEFIT FROM FOOD BANK SERVICES.

IN 2020, WE COMMISSIONED THE BLUM CENTER AT UC, SANTA CRUZ TO HELP US UNDERSTAND HOW PEOPLE ACCESS FOOD.

THIS SLIDE HERE REALLY BREAKS DOWN THE PROGRAMS THAT, BY PERCENTAGE OF ACCESS WHERE PEOPLE ARE ACCESSING FOOD.

AS YOU CAN SEE, 40, ABOUT ROUGHLY 42% OF INDIVIDUALS WHO ARE FOOD INSECURE DEPEND ON THAT SNAP OR CALFRESH PROGRAM FOLLOWED BY YOUR FOOD BANK WITH ITS PARTNER AGENCIES.

AND THEN OF COURSE PROGRAMS LIKE SCHOOL MEALS, OTHER PROGRAMS LIKE MEALS ON WHEELS, OTHER PROGRAMS LIKE WIC ARE ALSO A PART OF OUR FOOD SECURITY SYSTEM, AND THEY CONTRIBUTE TO ACCESS POINTS FOR OUR COMMUNITY.

NEXT SLIDE, PLEASE.

THE THING ABOUT THAT SLIDE IS THAT OBVIOUSLY THE CUTS THAT RANDY TALKED ABOUT MEANS THAT WE'RE GOING TO SEE, AND FOOD BANKS ACROSS THE NATION ARE PREPARING TO BECOME THE FIRST LINE OF DEFENSE AGAINST FOOD INSECURITY.

AS WE'RE WORKING REALLY HARD WITH OUR COUNTY PARTNERS AND OTHER COUNTY, OTHER COMMUNITY-BASED ORGANIZATIONS THAT WORK IN THIS SPACE, WE RECOGNIZE, WE RECOGNIZE THAT THERE, THIS IS GOING TO BE A VERY CHALLENGING TIME FOR PEOPLE TO SECURE AND MAINTAIN BENEFITS.

SO WE'RE PREPARING OURSELVES TO BE OF SUPPORT.

I WANNA TELL YOU THAT ALREADY YOUR FOOD BANKS ACROSS AMERICA INCLUDING YOUR OWN FOOD BANK, HAVE ALREADY EXPERIENCED CUTS.

IF YOU REMEMBER IN THE SPRING, THERE WAS ALL THIS CANCELLATION OF FUNDING THAT OCCURRED.

ONE OF THE PROGRAMS THAT GOT CUT WAS THE LOCAL FOOD PURCHASING ASSISTANCE PROGRAM.

THAT WAS SUCH A VALUABLE PROGRAM BECAUSE IT WAS FEDERAL FUNDING THAT CAME TO LOCAL FOOD BANKS THAT ALLOWED US TO DO BUSINESS WITH SMALL FARMERS.

SO WE WERE BUYING UP TO $750,000 WORTH OF FOOD FROM SMALL FARMERS.

I CAN TELL YOU FROM SPEAKING TO SOME OF THOSE SMALL FARMERS THEY'RE HAVING A VERY CHALLENGING TIME.

AND AS RANDY ALLUDED, THE LOCAL IMPACT YOU, SOME OF THESE INDIVIDUALS ARE STARTING TO FOLD AND ARE LIKELY GONNA BE END UP LOSING OBVIOUSLY EMPLOYMENT OPPORTUNITIES FOR OUR COMMUNITY.

SO THERE IS AN IMPACT IN THAT.

WE ALSO SAW ONE OF THE US DEPARTMENT OF AGRICULTURE PROGRAMS TERMINATE, AND THAT'S THE COMMUNITY CREDIT CORPORATION.

YOUR FOOD BANKS HAVE A LONG HISTORY OF BEING IN RELATIONSHIP WITH THE US DEPARTMENT OF AGRICULTURE AND IN THE SPRING, THE ADMINISTRATION KILLED ONE OF THE FUNDING SOURCES THAT PROVIDED REAL FOOD COMMODITIES TO YOUR FOOD BANKS.

AND YOUR FOOD BANK THE NUMBER ONE PRODUCT THAT WE ENDED UP SEEING NOT COME THROUGH, WAS PROTEIN.

WE ARE INTENTIONAL.

WE HAVE A LOT OF PRODUCE IN OUR AREA.

WE'RE INTENTIONAL IN SOURCING FOOD ITEMS THAT WE KNOW WE DON'T PRODUCE IN OUR REGION, AND PROTEIN WAS THE ITEM THAT WE DIDN'T SEE COME INTO YOUR FOOD BANK.

WE ALSO, WE DON'T GET A LOT OF FEDERAL FUNDING FOR ADMINISTRATIVE COSTS, BUT WE DID SEE A $100,000 DECREASE IN OUR FOOD AND DISTRIBUTION FEDERAL CONTRIBUTION.

AGAIN, YOUR FOOD BANK'S ALREADY RAISING 70% OF ITS BUDGET, AND EVERY TIME WE SEE A DECLINE OF ANY KIND OF THESE PROGRAMS, IT JUST, LET'S JUST SAY I FEEL THE PRESSURE, MY TEAM FEELS THE PRESSURE.

OF COURSE, RANDY TALKED ABOUT THE CALFRESH CHANGES AND WHAT THAT ALL MEANS.

THE RIPPLE EFFECT HE ALLUDED TO, OF COURSE, ARE EFFECTS THAT WE ARE PREPARING FOR AT THE FOOD BANK.

AND WE ARE, I GUESS THE STRESSOR POINT FOR EVERY FOOD BANK CEO RIGHT NOW IS THAT WE ARE REALIZING THAT VERY QUICKLY WE WILL NEED TO SHORE UP AS MUCH FOOD AS POSSIBLE, AND THAT'S GOING TO BE A CHALLENGE FOR THE FOLLOWING REASON.

NEXT SLIDE, PLEASE.

OOPS ONE. OKAY.

THIS IS THE HISTORY OF FOOD DONATIONS TO PEOPLE SERVED.

THESE ARE THE NUMBER OF TIMES A PERSON ACTUALLY ACCESS FOOD BANKS.

SO IT'S NOT AN INDIVIDUAL COUNT, BUT WHAT YOU WILL SEE HERE ACROSS THE YEARS IS THAT, WE ARE CURRENTLY EXPERIENCING A HIGHER DEMAND THAN WE ARE SEEING DONATED FOOD, AND THAT'S DUE TO A COUPLE OF REASONS.

FIRST OF ALL, TECHNOLOGICAL ADVANCEMENTS IN FOOD PRODUCTION SYSTEMS IS ALLOWING FOOD PRODUCERS

[01:15:02]

TO BE BETTER PREDICTORS OF HOW MUCH FOOD THEY NEED TO PRODUCE FOR A DOLLAR EXCHANGE.

RIGHT? SO FOOD BANKS DEPEND ON EXCESS FOOD AVAILABILITY.

TECHNOLOGY IS REALLY HELPING COMPANIES, PRODUCE FOOD FOR WHICH THERE'S A DOLLAR FOR.

THERE'S ALSO, AND IT'S PART OF THE TREND THAT YOU SEE HERE.

WE SAW AN EMERGENCE OF SECONDARY MARKETS.

SO THINK GROCERY OUTLETS.

RIGHT? IMPERFECT FOOD.

SO THEY, A MARKET EMERGED, RIGHT, A FEW YEARS AGO AND AS A RESULT OF THAT, FOOD THAT WOULD'VE BEEN AVAILABLE TO FOOD BANKS, WENT TO RETAIL. RIGHT? NOW, THE GOOD NEWS IS THAT, NEXT SLIDE PLEASE.

THAT THERE'S THINGS THAT WE'RE DOING ALREADY TO PREPARE AND IT'S IMPORTANT FOR YOU TO KNOW.

FIRST OF ALL, AS ELISA MENTIONED, AND RANDY MENTIONED WE ARE WORKING VERY CLOSELY IN PARTNERSHIP WITH YOUR COUNTY LEADERSHIP.

WE HAVE BROUGHT PARTNERS FROM COMMUNITY-BASED ORGANIZATIONS AND SYSTEMS THAT ARE IN THE BUSINESS OF PROVIDING PEOPLE WITH FOOD SECURITY, AND THAT INCLUDES UC, SANTA CRUZ CABRILLO COLLEGE, COMMUNITY BRIDGES, SALUD PARA LA GENTE, SANTA CRUZ COMMUNITY HEALTH CENTER.

WE ARE MEETING MONTHLY.

AND WE ARE WORKING TOGETHER TO PREPARE.

ONE OF THE THINGS WE'VE DONE IS WE'VE DEVELOPED AN ADVOCACY PIECE AS A STATE IS BUILDING ITS ELIGIBILITY REQUIREMENTS.

WE ARE RENDERING VOICE TO WHAT WE WOULD LIKE FOR THOSE ELIGIBILITY REQUIREMENTS TO LOOK LIKE, TO ENSURE THAT THERE'S ACCESSIBILITY OF MEETING THOSE REQUIREMENTS FOR OUR DIVERSE COMMUNITY.

WE ARE ALSO AS YOUR FOOD BANK, THE COUNTY HAS CONTRACTED WITH US TO SERVE AS YOUR FOOD RESCUE CONVENER, WHICH MEANS THAT WE ARE WORKING RIGHT NOW WITH OVER 24 ORGANIZATIONS ACROSS THE COUNTY TO RESCUE FOOD FROM THE RETAILERS.

SO YES, WE ARE PICKING UP FOOD AT GROCERY OUTLET.

YES, WE ARE PICKING UP FOOD AT YOUR RALEY'S SHOPPING STORE, NEW LEAF ALL THE RETAILERS WE'RE RESCUING OVER 1 MILLION POUNDS OF FOOD A YEAR RIGHT NOW.

SO WE'RE BEING INNOVATIVE AND PIVOTING AND MAKING SURE THAT WE RESCUE AS MUCH FOOD AS POSSIBLE.

I WANNA TALK ABOUT WHAT IS HAPPENING RIGHT NOW WITH SOME MEMBERS OF OUR COMMUNITY.

THE REALITY IS THAT THE IMMIGRATION FEARS IS IMPACTING SOME PEOPLE.

WE RECENTLY HEARD OF A MOTHER WHO CAME TO ONE OF OUR SCHOOL FOOD PANTRIES IN TEARS BECAUSE SHE HAD JUST GOTTEN INTO AN ALTERCATION WITH HER FAMILY WHO DIDN'T WANT HER TO COME TO THE FOOD BANK TO PICK UP FOOD FOR FEAR THAT THERE WAS GOING TO BE SOMEBODY THERE TO PICK HER UP.

SO THE IMPACT OF IMMIGRATION, AND THE FEARS RELATED TO ACCESSING SERVICES, I'M SURE THIS IS TRUE IN MANY SERVICE SPACES, IS EVIDENT IN THIS PARTICULAR STORY AND WE'RE DOING EVERYTHING IN OUR ABILITY TO COMMUNICATE TO THE COMMUNITY THAT WE ARE HERE, WE'RE A SAFE PLACE, AND THAT THEY SHOULD NOT BE MAKING DECISIONS AS TO WHETHER TO STARVE THEIR FAMILY OR COME AND ACCESS FOOD.

WE'RE ALSO PIVOTING AND DOING SOME HOME DELIVERIES NOW, WHICH ADDS COST TO YOUR FOOD BANK OPERATIONS, BUT WE ARE COMMITTED TO MAKING SURE PEOPLE HAVE ACCESS TO FOOD.

WE'RE LEVERAGING NEW PARTNERSHIPS.

SO WE HAVE NOW PARTNERED WITH THE CENTRAL COAST ALLIANCE FOR HEALTH, AND WE ARE PARTICIPATING IN THE DISTRIBUTION OF FOOD TO PEOPLE WITH CHRONIC DISEASES WHO ARE ALSO FOOD INSECURE.

AND WE'RE LEVERAGING MEDI-CAL REIMBURSEMENT BECAUSE HOW ELSE ARE WE GOING TO KEEP UP ALSO WITH MEETING NEEDS OF THE COMMUNITY, BUT OUR OPERATIONAL COSTS.

SO WE'RE BEING INNOVATIVE AND THINKING OUT OF THE BOX.

WE'RE DOING A LOT OF EDUCATION RIGHT NOW, THE COMMUNITY AROUND ALL THINGS CALFRESH, MAKING SURE THAT THEY CONTINUE TO SEEK US FOR APPLICATION ASSISTANCE AND IN INFORMING POLICY MAKERS LIKE YOURSELVES.

I JUST DID A PRESENTATION NOT SO LONG AGO TO THE CITY OF SANTA CRUZ, CITY OF WATSONVILLE, AND I'LL BE DOING THAT WITH EVERY JURISDICTION.

AND THEN FINALLY, MAXIMIZING ENGAGEMENT WITH ALL PARTNERS AS THE, AS IT BECOMES AVAILABLE.

AND LASTLY, I'LL JUST SAY THIS, THE REASON YOUR FOOD BANK'S BEEN SUCCESSFUL FOR 53 YEARS IS BECAUSE WE'VE BEEN WORKING TOGETHER AND TOM VILSACK WAS THE US DEPARTMENT OF AGRICULTURE SECRETARY.

AND HE WAS INSTRUMENTAL IN BUILDING A LOT OF THESE FOOD SECURITY SYSTEMS THAT ARE, WERE NOW SEEING BEING REDUCED.

SO PEOPLE WORKING TOGETHER IN A STRONG COMMUNITY WITH A SHARED GOAL AND COMMON PURPOSE CAN MAKE THE IMPOSSIBLE POSSIBLE.

AND FRANKLY, THAT IS THE FRAMEWORK THAT WE ARE USING IN THE FOOD BANK AND WE'RE GOING TO NEED YOUR SUPPORT.

AND I RECOGNIZE HOW HARD IT WILL BE FOR YOU ALL TO BE DELIBERATING AS YOU HEAR FROM OTHER PARTNERS IN SAFETY NET SYSTEMS THAT ARE EQUALLY IMPACTED.

GOOD MORNING MEMBERS OF THE BOARD, CHAIRPERSON HERNANDEZ, CONNIE MORENO-PERAZA.

- THANK YOU ERICA.

[01:20:01]

EVERYTHING YOU HEARD SO FAR AND EVERYTHING YOU'RE GONNA HEAR FOR THE REST OF THE DAY IS ABOUT HEALTH.

SO HEALTH IS ACROSS THE BOARD AFFECTING THE HEALTH AND WELLBEING OF OUR RESIDENTS OF THIS COUNTY.

HSA IS SAFETY NET PROGRAM.

OUR AGENCY, WE WORK WITH THE MOST VULNERABLE.

WE SERVE THE FOLKS WITH CHRONIC CONDITIONS.

BE IT HEALTH, BE MENTAL HEALTH OR ADDICTION, THESE CHANGES ARE GOING TO IMPACT ACCESS TO CARE.

THIS PARTICULAR SLIDE FOR ME GIVES A PRETTY BROAD OVERVIEW OF HOW MEDICAID IS THE LARGEST PAYER SOURCE FOR THE FOLKS THAT WE SERVE IN OUR CLINICS IN BEHAVIORAL HEALTH, ET CETERA.

SO THOSE MEDICAID FUNDING CUTS ARE DEFINITELY GONNA ACCESS ACCESS TO CARE WHICH ALL OF US ARE CONCERNED.

THE LOSS OF COVERAGE IS AGAIN, GONNA AFFECT OUR MOST VULNERABLE WHICH WILL RISK PUT THEM AT RISK OF GETTING INTO WORSE HEALTH CONDITIONS OR SITUATIONS.

THE INCREASED BARRIERS TO ACCESS AS RANDY MENTIONED THE NEW WORK REQUIREMENTS ARE GONNA MAKE IT A CHALLENGING FOR OUR FOLKS TO MEET THOSE REQUIREMENTS AND TRY TO BECOME EMPLOYED AND TO SUSTAIN A JOB, AND AGAIN, TO GET ACCESS TO CARE.

OUR COMMUNITY HEALTH CENTERS WILL BE AT RISK, IN THAT RECEIVING REIMBURSEMENT TIMELY WILL BE AFFECTED BY THESE CHANGES.

AND THEN, DEFINITELY THE INCREASED PRESSURE ON OUR BEHAVIORAL HEALTH SYSTEM, AS WE HAVE A CRISIS ALREADY IN BEHAVIORAL HEALTH, THIS WILL EXACERBATE OUR CRISIS.

AS YOU'RE HEARING THE NEWS, YOU SEE IT EVERY DAY, OUR YOUNG PEOPLE, OUR CHILDREN, ADULTS, OLDER ADULTS, ISOLATING IN HIGH DEPRESSION IS GOING TO JUST EXACERBATE EVERYTHING.

SO THE OVERALL IMPACT OF THIS IS DEVASTATING FOR OUR SAFETY NET PROGRAM.

IN THIS SLIDE SOME OF THE HEALTH SYSTEM IMPACTS FROM THE POLICY AND ACTION PERSPECTIVE.

THE MEDICAID FINANCING AND ELIGIBILITY CHANGES ARE GOING TO OF COURSE, THE OUTCOME WILL BE LESS FUNDING FOR HEALTHCARE, AND THEN THE IMPACT WILL BE, IT WILL BE WIDENING THE HEALTH DISPARITIES.

OUR POOREST WILL BE AFFECTED OUR FOLKS FROM THE DIVERSE COMMUNITIES WILL BE AFFECTED, SO IT'LL HAVE A MAJOR TRICKLING EFFECT.

FOR THE ACA MARKETPLACE, ELIGIBILITY AND TAX CREDITS, AGAIN, THE OUTCOME WILL BE MORE UNCOMPENSATED CARE.

YOU'LL HEAR UNCOMPENSATED CARE FOR THE WHOLE REST OF THE DAY.

YOU'RE HERE WITH A MEDICARE'S PRESENTATION AS WELL.

AGAIN, THERE'LL BE GREATER RELIANCE AND STRAIN ON THE SAFETY NET INFRASTRUCTURE THAT IS BEING IMPACTED BY THESE CUTS.

THE LIMITATION ON REPRODUCTION HEALTH ACCESS, AGAIN, NEXT ACCESS TO HEALTHCARE AS IT WAS NOTED, HAVE AN UNHEALTHY SOCIETY, AN UNHEALTHY... CONTRIBUTE TO THE HEALTH OF OUR COUNTY AND OTHER RESIDENTS OF THE COUNTY.

AND THEN THE SNAP CHANGES, LESS HEALTH PROMOTION AND PREVENTION ACTIVITIES, WHICH AGAIN WILL IMPACT A GREATER RISK FOR DISEASE, INJURY, AND HOPEFULLY NOT, BUT PREMATURE DEATH.

SO IN TALKING FOR HUMAN BEINGS, PEOPLE IN OUR COUNTIES, AS ELISA MENTIONED AT THE VERY BEGINNING, THIS IS AFFECTING US, HUMAN BEINGS.

IT HAS AN IMPACT ON THE PEOPLE THAT LIVE IN THIS COUNTY.

FOR US, THERE'S 14,000 PATIENTS THAT WILL BE AFFECTED OVERALL.

05,000 ARE IN OUR SPECIALTY MENTAL HEALTH SYSTEM, BEHAVIORAL HEALTH, AND THEN 2,000 ARE DRUG MEDICARE ORGANIZED DELIVERY SYSTEM.

23 OUTREACH AND EDUCATION ENCOUNTERS WILL BE AFFECTED, AND THEN 2,000 CONSUMER PROTECTION FACILITIES.

SO OUR HEALTH DELIVERY SYSTEM, AGAIN, MORE UNCOMPENSATED CARE LESS MEDICAL FUNDING, AND AGAIN, THE RISK OF SUSTAINABILITY.

SO UNDER THE POPULATION HEALTH, WE'LL HAVE LESS FUNDING FOR HEALTH PROMOTION, PREVENTION AND MEDI-CAL ADMINISTRATIVE ACTIVITIES.

WHICH AGAIN ARE UNHEALTHY POPULATION CONTRIBUTING TO THE ECONOMIC CHALLENGES.

SO ALL THE SYSTEMS WILL BE IMPACTED BY THESE CUTS THROUGHOUT THE COUNTY.

SO SOME OF THE KEY TAKEAWAYS HAS BEEN NOTED.

YOU'LL HEAR IT OVER AND OVER AGAIN.

IT WILL HAVE BROAD IMPACT ON INDIVIDUAL AND SOCIETY AS A WHOLE, THE HEALTH OF OUR SOCIETY.

IT IMPACTS EVERYONE, NOT JUST THOSE WHO ARE POOR OR WHO ARE IN THE UIS STATUS.

OUR SAFETY NET AND OUR INFRASTRUCTURE, WILL AFFECT THE SERVICES WE PROVIDE TO THE INDIVIDUALS THAT I MENTIONED TO YOU EARLIER IN ALL OUR SYSTEMS. AND THEN THE LOCAL SAFETY NET INFRASTRUCTURE CANNOT FILL THE GAP CREATED BY THESE POLICIES.

HOWEVER, ON THE POSITIVE SIDE OF THINGS, THERE ARE SOME EFFORTS UNDERWAY TO MITIGATE SOME OF THESE IMPACTS.

AND I WANT TO PUBLICLY THANK OUR STAFF FOR THE GREAT WORK THEY'VE BEEN DOING AND ARE STARTING TO DO AS WELL.

SO SOME OF THE MITIGATION STRATEGIES,

[01:25:01]

AGAIN YOU'LL HEAR MORE ABOUT MEDICRUZ A LITTLE BIT LATER.

WE'RE GOING TO MONITOR AND SUSTAIN THIS CORE SAFETY NET SERVICE.

IT'S CRITICAL FOR US TO HELP OUR COMMUNITY, OUR INDIGENT CARE.

ACCESS TO MEDICAL CARE PARTNERSHIPS, COLLECTIVE ACTION WITH SAFETY NET HEALTHCARE PARTNERS.

THERE'S OPERATIONAL EFFICIENCIES THAT WE'RE DOING IN HSA.

WE'RE LOOKING AT INCREASING PRODUCTIVITY, LOOKING AT HOW WE LINK FOLKS TO BENEFIT, TO LINK THEM TO BENEFIT PACKAGES SO THEY CAN MEET THEIR NEEDS AS MUCH AS POSSIBLE.

AND THEN BEHAVIORAL HEALTH SERVICES ACT IS ONE THAT I WANT TO LOOK AT LEVERAGING TO SEE WHERE WE CAN HELP WITH THAT FUNDING THOSE CHANGES THAT ARE COMING JULY 1ST OF 2026, TO SEE HOW WE CAN LOOK AT THAT PROCESS TO MITIGATE SOME OF THESE IMPACTS.

AND WITH THAT, I WANT TO TURN IT OVER TO AGAIN OUR HEALTHCARE SYSTEM AS A WHOLE, OUR HOSPITALS OUR PARTNERS ARE VERY CRITICAL.

AS RANDY SAID, WE CAN'T DO THIS ALONE.

WE RELY ON OUR PARTNERS.

I'M VERY THANKFUL FOR MARITZA LARA TO BE HERE, OUR EXECUTIVE DIRECTOR OF HIP, HIPC, NOT HEPC, HIPC.

AND I'M VERY, VERY THANKFUL FOR YOU TO BE HERE TO PROVIDE AN OVERVIEW OF WHAT SHE'S WORKING ON.

- THANK YOU SO MUCH.

GOOD MORNING, EVERYONE.

MARITZA LARA, I SERVE AS EXECUTIVE DIRECTOR AT THE HEALTH IMPROVEMENT PARTNERSHIP OF SANTA CRUZ COUNTY.

AND I'M ALSO AN IMMIGRANT TO THIS COUNTRY.

I CAME TO THE US WITH ONE QUESTION.

I JUST HAD ONE QUESTION.

HOW DID THIS BEAUTIFUL COUNTRY CREATE THE BEST HEALTHCARE SYSTEM IN THE WORLD? I WAS 20.

SO I WAS FULL OF DREAMS, HOPES AND IDEAS.

AND WHAT THIS LAST 16 YEARS HERE HAVE TAUGHT ME, IS THAT THE HEALTHCARE SYSTEM IS AMAZING IN THE US IF YOU HAVE THE MEANS TO PAY FOR IT.

AND SO IF YOU ARE DISAPPOINTED AT WHAT YOU'RE HEARING, AT WHAT IS HAPPENING, I JUST WANT YOU TO KNOW THAT YOU ARE IN GOOD COMPANY.

I TOO HAVE SPENT THE LAST 16 YEARS JUST KIND OF TRYING TO WRAP MY HEAD AROUND WHAT'S GOING ON AND WHY IS IT HAPPENING.

I WANT TO SHARE SOME BACKGROUND AS TO WHO HIP IS IF WE GO INTO THE NEXT SLIDE.

THIS ORGANIZATION WAS CREATED 21 YEARS AGO BY THE HEALTH SYSTEM ITSELF HERE IN SANTA CRUZ COUNTY.

OUR GOAL HAS ALWAYS BEEN TO PROMOTE COLLABORATION OVER COMPETITION IN THE HEALTH SYSTEM SPACE.

WE ARE COMPRISED OF OVER 20 ORGANIZATIONS DELIVERING DENTAL, BEHAVIORAL HEALTH, HOSPICE CARE.

OUR NETWORK INCLUDES COMMUNITY HEALTH CENTERS, HOSPITALS, HEALTH PLANS, COMMUNITY-BASED ORGANIZATIONS, AND EDUCATIONAL INSTITUTIONS.

IF WE GO INTO THE NEXT SLIDE.

TOGETHER, WE STRENGTHEN THE SAFETY NET.

WE HAVE THE VISION OF SERVING AS A CATALYST FOR COLLECTIVE ACTION TO ACHIEVE HEALTH EQUITY THROUGH AN ANTI-RACIST APPROACH.

YES, THANK YOU FOR THE LAUGHTER, BECAUSE IT IS A CHALLENGING VISION TO REALLY LEAD AT THE MOMENT.

I'M HERE TODAY, IF WE GO INTO THE NEXT SLIDE, TO ANSWER THIS QUESTION.

WHAT ARE WE HEARING FROM OUR MEMBERS? WHAT IS HIP HEARING FROM ITS MEMBERS AROUND HR1 IMPACTS? AND WHAT WE'RE HEARING IS CONCERNING.

WE KNOW THAT IN THE NEXT COUPLE OF MONTHS, WE WILL HAVE MORE UNINSURED SANTA CRUZ COUNTY RESIDENTS.

WE ARE CONCERNED ABOUT THE STYLE PROGRESS TO EQUITY AND QUALITY HEALTHCARE SERVICES.

THESE CUTS IN FUNDING ARE ALSO LEADING TO A DECREASED REVENUE FOR HOSPITALS, FOR SAFETY NET PROVIDERS, WHICH IS ALSO GOING TO INCREASE LOCAL UNEMPLOYMENT RATES.

THE HEALTHCARE DELIVERY SYSTEM, IT'S ALREADY STRUGGLING AND HR1 ONLY ADDS GREATER STRAIN TO A VERY IMPACTED SYSTEM.

IF WE GO INTO THE NEXT SLIDE, THE ONE BEFORE.

ONE THING THAT WE'RE HEARING FROM OUR MANAGED CARE PLAN PARTNER IS THAT BY 2027, WE ARE LIKELY TO SEE A 27% DISENROLLMENT OF MEMBERS WITH A DECLINE JUST THIS YEAR OF 4%.

FOR RESIDENTS IN OUR COMMUNITY WHO RECEIVE HEALTHCARE THROUGH COVERED CALIFORNIA, THE PREMIUM TAX CREDIT, IT'S SUNSETTING.

AND SO THESE 13,000 COUNTY RESIDENTS ARE LIKELY TO SEE AN INCREASE IN HEALTH INSURANCE PREMIUMS. AND YOU ALL KNOW THE MOMENT THAT SOMEONE REALLY HAS TO DECIDE BETWEEN FOOD AND AN INSURANCE THAT THEY MAY NEED THIS MONTH OR IN A COUPLE OF MONTHS, A LOT OF FOLKS MIGHT DECIDE, YOU KNOW THIS IS JUST NOT WORTH TO PAY AND WE ARE DISENROLLING AS A FAMILY.

IF WE GO INTO THE NEXT SLIDE.

[01:30:03]

I WANTED TO PUT THINGS IN PERSPECTIVE BECAUSE THE HEALTH CARE SYSTEMS ISSUES THAT I'M DESCRIBING AND THAT MY PARTNERS HERE ARE DESCRIBING ARE NOT A PROBLEM OF TOMORROW.

MANY IN OUR COMMUNITY ALREADY RECEIVE LESS THAN DESIRABLE HEALTH CARE SERVICES, WHICH IS DRIVING LESS THAN DESIRABLE HEALTH CARE OUTCOMES.

HR1 ONLY MAKES THINGS WORSE.

AND SO TO SUM OUT A LITTLE BIT, I WANTED TO SHARE WITH YOU A COUPLE OF QUOTES I PULLED FROM A PROJECT THAT WE HAVE BEEN CONDUCTING IN PARTNERSHIP WITH OUR HEALTHCARE PARTNERS HERE IN SANTA CRUZ COUNTY.

AND THIS PROJECT ASSESSES THE STATE OF BIRTH EQUITY IN THE COMMUNITY.

AND SO AS I READ THESE QUOTES, I WANT YOU TO KEEP IN MIND, THIS IS PEOPLE'S EXPERIENCES WITH THE HEALTHCARE SYSTEM AROUND THIS PARTICULAR TOPIC WITH THE RESOURCES THAT WE CURRENTLY HAVE IN OUR COMMUNITY.

AND SO I'LL READ.

FROM BIRTHING PEOPLE WE HEARD, AFTER BIRTHING MY CHILD, I DIDN'T SEE A DOCTOR FOR MONTHS.

I WAS ASHAMED TO ASK FOR HELP WITH DEPRESSION.

MY DOULA WAS THE ONLY ONE WHO CHECKED ON ME AFTER DELIVERY.

WHEN I REALIZED THAT THE NURSE SPOKE MIXTECO, I FELT AT PEACE.

FROM HEALTHCARE PROVIDERS, WE HEARD EVERY YEAR MORE COLLEAGUES LEAVE BECAUSE THEY CANNOT AFFORD TO LIVE HERE.

JOY IS WHAT KEEPS US STRONG EVEN WHEN THE SYSTEM FAIL US.

WE ARE DEALING WITH A REALLY COMPLEX SITUATION.

THESE REALITIES DEMAND THAT AS THE PARTNERS THAT WE HEARD FROM BEFORE THAT ARE HIP PARTNERS, AND I THANK YOU FOR THAT, THAT WE CONTINUE TO WORK TOGETHER.

BECAUSE I DON'T THINK ANY OF US WANT TO KNOW WHAT THE QUOTES WILL SAY IF THE SYSTEM CONTINUES TO FURTHER FALL APART IN OUR COMMUNITY.

IF THIS IS THE REALITY THAT PEOPLE ARE FACING WITH WHAT WE CURRENTLY GIVE THEM, WHAT WE'RE CURRENTLY ABLE TO PROVIDE FOR THEM, JUST IMAGINE WHAT WILL HAPPEN AS THINGS DETERIORATE.

AND SO I THANK YOU, RANDY AND CONNIE, FOR BEING ACTIVE PARTICIPANTS AT HIP.

WE ARE HERE TO FACILITATE CONVERSATIONS.

IF THIS BOARD WILL LIKE TO MEET WITH HEALTH CARE LEADERS AT SOME POINT TO INFORM POLICY, MORE THAN WELCOME TO PROVIDE OUR TABLE TO HAVE THOSE CONVERSATIONS.

I KNOW MONICA MARTINEZ HAS BEEN A REALLY KEY CHAMPION IN JUST KEEPING A PULSE OF WHAT'S HAPPENING IN THE SAFETY NET.

AND SO I'M MORE THAN WELCOME TO CONTINUE THOSE CONVERSATIONS.

AND I'M PASSING IT BACK TO ELISA.

- THANK YOU, EVERYONE.

I'M GONNA TRY AND GET THROUGH THESE REMAINING SLIDES FAIRLY QUICKLY.

BECAUSE WE'VE HAD A LOT OF INFORMATION IN FRONT OF YOU TODAY.

BUT I REALLY WANT TO CRYSTALLIZE HOW THIS COMES BACK TO ECONOMIC AND BUDGET IMPACTS AS WELL AS WHAT WE'VE TALKED ABOUT TODAY.

REAL HUMAN IMPACTS.

WE'VE TALKED ABOUT PROBABLY A THIRD OR MORE OF COUNTY RESIDENTS CURRENTLY GETTING MEDI-CAL WILL BE AFFECTED.

BY THIS AND THEIR ACCESS TO HEALTHCARE.

THIS ALSO ROLLS THROUGH THAT THE REVENUE STRUCTURES THAT FLOW BETWEEN CLINICS AND HOSPITALS AND PROVIDERS, EXCUSE ME, ARE IN A BIT OF DISARRAY.

SO THAT'S ANOTHER ONE OF SORT OF THE MACRO QUESTIONS IN PLAY THAT WHERE THIS EXTENSION OF PARTNERSHIP AND RECOGNIZING WE ARE IN THIS TOGETHER IS SO CRITICAL.

RANDY HIGHLIGHTED, AND I THINK IT BEARS REPEATING, ALMOST $17 MILLION OF BENEFITS THAT FLOW INTO OUR ECONOMIC SYSTEMS FROM SNAP WILL NOT BE FLOWING ANYMORE.

SO THIS IS NOT JUST THE INDIVIDUAL IMPACT, BUT THERE ARE RIPPLE EFFECTS THROUGHOUT OUR ECONOMY.

I MEAN, THEN I THINK WE, THOUGH NOT A SYSTEM, THE COUNTY HAS A ROLE IN, THE ACA MARKETPLACE IMPACTS MANY, MANY WORKING FAMILIES IN THIS COMMUNITY WHO RELY ON THOSE SUBSIDIES TO MAINTAIN THEIR ACCESS TO HEALTHCARE NO LONGER WILL HAVE THOSE.

SO THESE ARE VERY LARGE, BROADER IMPACTS THAT WILL BE PART OF THE QUESTIONS AHEAD.

IN TERMS OF THE IMMEDIATE COUNTY IMPACTS, WE ARE ESTIMATING, YOU KNOW, $10 MILLION EASY IN REVENUE IMPACTS TO OUR HEALTH CENTERS.

[01:35:03]

WE'VE TALKED ABOUT, RANDY HAS MENTIONED, INCREASED ADMINISTRATIVE COSTS FOR PROGRAMS THAT REACH FEWER PEOPLE.

WE'VE ALREADY SEEN THE ABRUPT ELIMINATION OF SNAP-ED SPACE THAT IS REALLY ON THAT PREVENTION SIDE.

AND WE ALL KNOW THAT THAT $379,000, THAT INVESTMENT IN PREVENTION AND THAT DISINVESTMENT WILL HAVE IMPACTS DOWN THE LINE.

YOU HAVE A SEPARATE CONVERSATION TODAY TO START TALKING ABOUT WHAT DOES THIS MEAN FOR MEDI-CRUZ? WHAT DOES IT MEAN FOR OUR LOCAL, ALBEIT SMALL AND MIGHTY AT THIS POINT MEDICAL PROGRAM FOR INDIGENT CARE? SOMETHING THAT WE THOUGHT WAS BEHIND US IS RIGHT BACK FRONT AND CENTER, AND YOU'LL BE HEARING ABOUT THAT TODAY.

SO JUST, I WANTED TO SORT OF SUMMARIZE WITH THAT HIGH LEVEL, HIGH LEVEL CONVERSATION.

AND THE NEXT SLIDE, AGAIN, WE'VE DONE THIS VISUAL.

OVERLOADING FOR INTENTIONALITY.

YOU SEE THE STATE PIECES AT THE TOP, YOU SEE THE FEDERAL PIECES AT THE BOTTOM AND WHAT WE WILL BE DOING AS PART OF THAT ANNUAL BUDGET DEVELOPMENT PROCESS THAT YOU ALL PARTAKE IN, THAT YOU ALL MAKE DECISIONS ABOUT, THOSE DECISIONS WILL GET MORE COMPLEX AND WE WILL BE HITTING THESE QUESTIONS AND THEY WILL CONTINUE TO GET COMPLEX OVER THE NEXT THREE BUDGET CYCLES AT A MINIMUM, THAT WILL MAKE IT DIFFERENT THAN YEARS BEFORE.

AND SO AS WE TALK ABOUT RIGHT NOW THE BULK OF THESE IMPACTS IN SAFETY NET AND HEALTH AND FOOD SECURITY SYSTEMS, EVERY GENERAL FUND DOLLAR IS GONNA NEED TO BE SCRUTINIZED FOR ITS HIGHEST AND BEST USE.

AND SO THE QUESTIONS YOU ALL WILL BE FACING, THE QUESTIONS THE DEPARTMENTS IN THE AUDIENCE WILL BE FACING IS HOW ARE WE GONNA SPEND EACH AND EVERY DOLLAR TO ITS HIGHEST AND BEST USE AND ADDRESS THE NEEDS OF OUR COMMUNITY.

WITH THAT, I'M GONNA PAUSE AND I'M GONNA SWITCH GEARS AND TALK A LITTLE BIT ABOUT FEDERAL GOVERNMENT SHUTDOWN.

I THINK WE WERE ALL HOPING WE WOULD NOT BE HERE TODAY, BUT IT'S LOOKING MORE AND MORE LIKELY THAT THERE WILL BE A GOVERNMENT SHUTDOWN.

I JUST WANNA SAY FROM THE OUTSET THAT THE CEO AND ALL OF THE COUNTY OPERATING DEPARTMENTS ARE HAVING VERY ACTIVE CONVERSATIONS.

ABOUT WHAT A SHORT VERSUS LONG-TERM SHUTDOWN MIGHT ENTAIL.

JUST VERY QUICKLY WITHOUT CONTINUING RESOLUTION TO PROVIDE TEMPORARY APPROPRIATIONS, IF THAT DOES NOT HAPPEN AND WE MOVE INTO A SHUTDOWN, THE EXECUTIVE BRANCH DETERMINES WHAT SHUTS DOWN.

AND WHAT I HAVE ON THIS SLIDE IS REFLECTIVE OF HISTORIC APPROACHES TO SHUTDOWNS.

AND I THINK IT'S PROBABLY SAFE TO SAY THAT THE WAY WE HAVE WATCHED THE ADMINISTRATION BEHAVE IN THE LAST 10 MONTHS IS WHAT MAY HAVE BEEN WHAT HAPPENED IN THE PAST MAY NOT BE HOW IT'S HANDLED IN THE FUTURE.

BUT WHAT WE KNOW IS WHAT WE KNOW.

IN THE PAST, THERE'S BEEN SORT OF A DEFINITION, A DISTINCTION BETWEEN ESSENTIAL AND NON-ESSENTIAL.

AND THAT'S DEMONSTRATED HERE ON THIS SLIDE THAT TYPICALLY THOSE ESSENTIAL BENEFITS AND PROGRAMS HAVE CONTINUED TO OPERATE IN SOME RELATIVE NORMALCY.

HOWEVER, THE NON-ESSENTIAL HAVE SLOWED DOWN, PAUSED.

WE DO KNOW AND DIRECTOR MORRIS CAN SPEAK TO IT MORE, THERE IS A BACKUP PLAN FOR CALFRESH OF WHERE ABOUT A MONTH OF SORT CONTINUING BENEFIT FLOWS IS PLANNED FOR.

WHEN WE'VE TALKED WITH OUR DEPARTMENTS ABOUT THIS, PROBABLY THE MOST COMMON REFRAIN IS A SLOWDOWN IN FEDERAL REIMBURSEMENTS.

LIKE CASH THAT WE EXPECT TO COME IN ON A REIMBURSEMENT LEVEL MAY DRAMATICALLY SLOW DOWN.

SO WE ARE WORKING VERY ACTIVELY WITH OUR AUDITOR, CONTROLLER, TREASURER, TAX COLLECTOR ON THAT QUESTION OF CASH MANAGEMENT.

LIKE HOW DO WE KEEP OUR OPERATIONS MOVING, PAYING OUR BILLS, PAYING OUR EMPLOYEES, PROVIDING SERVICE TO OUR COMMUNITY IN WHAT MAY BE A PERIOD OF TIME WHERE OUR CASH THAT WE EXPECT TO COME AT REGULAR INTERVALS FROM THE FEDERAL GOVERNMENT AND SOMETIMES MEDIATED THROUGH THE STATE THAT IS DISRUPTED.

SO IT IS SOMETHING WE'RE ACTIVELY MANAGING.

WE DO HAVE RESERVES,

[01:40:02]

BUT THAT IS WHAT WE'RE IDENTIFYING RIGHT NOW IS THE MOST PROBABLE IMPACT TO OUR SERVICE DELIVERY.

IT'S REALLY A FINANCIAL MANAGEMENT ISSUE.

SO WITH THAT I'M GOING TO TALK BRIEFLY ABOUT NEXT STEPS.

WE WILL CONTINUE DOING MUCH OF THE WORK WE'VE BEEN DOING QUIETLY FOR THE LAST NINE MONTHS.

THAT IS WE HAVE A COUNTY FEDERAL IMPACTS WORK GROUP.

WE WILL ACTUALLY BE EXPANDING THAT GROUP TO MOVE FROM SORT OF ASSESSMENT AND ENVIRONMENTAL SCAN TO MORE ACTION ORIENTED.

HOW ARE WE PLANNING NOW THAT WE HAVE A BETTER LANDSCAPE, A BETTER MAP OF THE CHALLENGES, OPERATIONAL CHALLENGES, FINANCIAL CHALLENGES, HUMAN CHALLENGES AHEAD.

OBVIOUSLY, WE'RE PREPARING AND TRACKING FOR SHUTDOWN.

AND WE, IN THE LAST NINE MONTHS, IN THE LAST FOUR MONTHS, TO BE MORE HONEST ABOUT IT, OUR OFFICE HAS BEEN HIGHLY ENGAGED WITH A BROAD SET OF COMMUNITY PARTNERS, AND PREDOMINANTLY THAT ENGAGEMENT HAS BEEN THROUGH THE PAJARO VALLEY COLLABORATIVE WHICH JUST BRINGS AN ENORMOUS AMOUNT OF OUR COMMUNITY ORGANIZATION CAPACITY AND STRENGTH TOGETHER.

AND WE ARE VERY, VERY APPRECIATIVE, NICOLE AND MYSELF, TO BE AT THAT TABLE ALONG WITH OUR REPRESENTATIVES FROM THE HIS.

IT'S A VERY POWERFUL GROUP AND VERY INSPIRING IN A TIME WHERE WE NEED IT.

WE WILL CONTINUE TO DO OUR CORE JOBS AROUND FISCAL ANALYSIS AND LIKE I MENTIONED, MOVE FROM THIS ASSESSMENT INTO MORE WHAT ARE THE ACTIVE MITIGATION STRATEGIES WE NEED TO BE WORKING WITH PARTNERS WITH BRINGING TO YOU, WORKING WITH YOU ON TO GET AHEAD OF THE IMPACTS THAT WE HAVE BEEN ABLE TO SET FORWARD TODAY.

A LOT OF WHAT I'VE JUST GONE THROUGH IS REALLY OUR TECHNICAL WORK.

THIS IS THE WORK WE DO ALL THE TIME.

AND THIS LAST BULLET DOESN'T DO THE REAL INTENTIONALITY OF IT JUSTICE.

WE KNOW WE NEED TO HAVE, WE HAVE TO HONOR ALL THE SECTOR SPECIFIC PARTNERING WORK THAT'S HAPPENING ALREADY.

MANY OF THE FOLKS AT THE TABLE HAVE TALKED ABOUT IT.

THEY'RE ALREADY DOING THE WORK.

AND WE KNOW THAT WE HAVE TO TAKE IT TO ANOTHER LEVEL.

THE ISSUES THAT YOU'VE SEEN HERE TODAY PRESENTED HERE ARE LARGE-SCALE STRUCTURAL CHANGES TO SYSTEMS THAT OUR ORGANIZATIONS, OUR PARTNERS HAVE RELIED ON FOR DECADES.

WE'RE TALKING ABOUT MAJOR INSTITUTIONAL NORMS BREAKING.

AND WE WANT TO BE SERIOUS AND HONEST ABOUT THE DEPTH OF THE IMPACTS OF THESE CHANGES.

BUT WE ALSO WANT TO BE, LET YOU KNOW WE'RE READY.

YOU HAVE PARTNERS HERE, YOU HAVE STAFF HERE THAT ARE READY FOR THIS CHALLENGE, AND WE WILL GET THROUGH IT TOGETHER.

SO, HERE WE GO.

THE GREATNESS OF A COMMUNITY IS MOST ACCURATELY MEASURED BY THE COMPASSIONATE ACTIONS OF ITS MEMBERS.

WE GET TO DO THAT.

WE GET TO DO THAT TOGETHER.

AND I THINK, WAIT, WE MUST HAVE OUR OBLIGATORY, THERE IT IS, OUR OBLIGATORY RECOMMENDED ACTION SLIDE.

WITH THAT BOARD, PANEL, THANK YOU, AND TURN IT BACK TO YOU FOR PUBLIC COMMENT AND QUESTIONS AND DISCUSSION.

- THANK YOU. BEFORE WE MOVE ON TO PUBLIC COMMENT OR QUESTIONS I JUST WANTED TO ASK FOR US TO GET A DEEPER UNDERSTANDING, WHAT WE'RE GONNA HAVE TO GRAPPLE WITH.

ARE WE LOOKING INTERNALLY AT THESE FISCAL PROJECTIONS AND IMPACTS THEY MIGHT HAVE IN LOOKING AT WAYS TO TRIAGE, MITIGATE, OR ADAPT TO THESE CHALLENGES.

AND ARE WE ALSO LOOKING AT THE IMPACTS OF HR1 ON THE STATE AND HOW THEY AFFECT US AS A COUNTY? - THE ANSWER IS YES.

AND THIS IS SORT OF THE, YOU KNOW, I'M GOING TO SAY SILVER LINING.

BECAUSE WE DO HAVE THIS ROADMAP, WE ARE ABLE TO UNDERSTAND IN SEQUENCE HOW SOME OF THESE CHANGES ARE HAPPENING.

AND I'LL JUST GIVE AN EXAMPLE.

FOR EXAMPLE, WE KNOW AS THE FIRST ONSLAUGHT OF CHANGES ARE IN THE SNAP CALFRESH SPACE AROUND WORKLOAD REQUIREMENTS.

WE KNOW WE HAVE SOME EXISTING APPARATUS, AND I'M GONNA PASS IT TO DIRECTOR MORRIS TO ANSWER THIS MORE, BUT I'M GIVING THIS AS AN ILLUSTRATION.

WE KNOW THAT THAT APPARATUS IS GOING TO HAVE TO BE CLICKED INTO HIGH GEAR TO UNDERSTAND HOW DO WE KEEP PEOPLE ELIGIBLE.

[01:45:01]

SO WHEN YOU TALK ABOUT MITIGATION, THOSE ARE THE CONVERSATIONS THAT THESE TEAMS ARE STARTING TO HAVE.

HOW DO WE TAKE SOMETHING THAT WAS ONLY SIZED FOR A CERTAIN LEVEL OF DEMAND AND SCALE IT UP.

SO THOSE ARE SOME OF THE KINDS OF PREPARATORY WORK WE CAN DO TODAY.

WE'RE STILL, HONESTLY, STILL TRYING TO UNDERSTAND EXACTLY HOW THE FEDERAL CUTS, HOW THE CHANGES THAT WE GO INTO GRUESOME DETAIL IN THE MEMO, LIKE CHANGES IN PROVIDER TAX, CHANGES IN DIFFERENT KINDS OF HOW THE STATE CAN PAY FOR DIFFERENT SERVICES WITHIN MEDI-CAL.

WE DON'T KNOW EXACTLY HOW THE STATE IS GOING TO ADDRESS THAT IN THEIR OWN SYSTEMS. SO I'M GONNA LIKE PASS THIS OVER TO THE DIRECTORS WHO LIVE AND ARE IN THAT SPACE ALL THE TIME.

SO WE'RE WATCHING, BUT WE DON'T HAVE ENOUGH INFORMATION YET TO FULLY UNDERSTAND WHAT THE COST SHIFT WILL BE TO US.

- YOU MENTIONED MY NAME.

AS THE HUMAN SERVICE DIRECTOR, I WANT TO PIGGYBACK ON SOMETHING ERICA SAID IN HER PRESENTATION ABOUT HOW MY STATE ASSOCIATION AND HER ASSOCIATION CAME TOGETHER TO NOT ADVOCATE FOR HUMAN SERVICES FUNDING BUT TO ADVOCATE FOR FOOD BANK FUNDING.

I JUST WANT TO START WITH THAT.

IF I'M HEARING YOUR QUESTION, CHAIR HERNANDEZ, I THINK WE'RE GOING TO BE IN A UNIQUE MOMENT, WHICH IS VERY CHALLENGING TO SAY, CAN WE COME TOGETHER? WE MAY NOT BE ABLE TO PICK ONE OR TWO THINGS THAT WE WANTED TOGETHER FIGHT FOR.

AND IT'S GONNA BE BOTH STATE BUDGET AND FEDERAL BUDGET.

AND I THINK IF THIS, WHAT IS REPRESENTED HERE, IF WE CAN GET THERE AS STAFF AND THEN TURN TO YOU AS OUR ELECTED OFFICIALS AND YOU AGREE, CAUSE THAT'S YOUR PREROGATIVE, I THINK WE MIGHT HAVE A BETTER CHANCE OF MITIGATING BETTER THAN JUST EVERYBODY IN A FREE-FOR-ALL.

SO LET ME MAKE ONE FINAL STATEMENT.

ACROSS CALIFORNIA, LIKE WE THE CEO HEALTH AND HUMAN IN FRONT OF YOU DURING JUNE BUDGET HEARINGS, WHEN HR1 HAD YET TO PASS, WE PREDICTED WE WOULD BE BACK IN FRONT OF YOU AS EARLY AS TODAY TO PROPOSE CUTS.

THAT DID NOT HAPPEN.

THE REASON THAT DID NOT HAPPEN IS BECAUSE HR1 GOT ROLLED OUT IN THREE SUCCESSIVE YEARS BY INTENT.

THE CURRENT RED WAVE ROLLED OUT THE BIGGEST HITS AFTER MIDTERM ELECTIONS.

SO THEREFORE, INSTEAD OF ACROSS CALIFORNIA, THEY'RE BRINGING A GOVERNOR SPECIAL SESSION THIS FALL AND THEN COUNTIES HAVING TO COME BACK AND ADJUST BUDGETS.

WE ARE NOW, I THINK THIS IS YOUR QUESTION, BRACING OURSELVES FOR THE JANUARY GOVERNOR NEWSOM'S BUDGET BECAUSE HE AND THE LEGISLATURE HAVE TO GRAPPLE WITH HOW TO PREPARE TO ABSORB CUTS IN FEDERAL FISCAL YEAR '26.

IN CALIFORNIA'S BUDGET, THAT WILL BE POLITICAL, THAT WOULD BE DIFFICULT.

AND THEN WE AS COUNTIES AND PARTNERS ARE GOING TO HAVE A LOCAL DIALOGUE TO SAY, WHAT DO WE DO? AS YOU KNOW, THERE'S THE JANUARY BUDGET, THEN THERE'S THE MAY REVISE, AND THEN THERE'S THE BUDGET GETS SETTLED.

THAT CROSSWALK, JUST WITH THE STATE AND THE COUNTY BUDGET, I THINK IS GOING TO BE THE TEST, SUPERVISOR HERNANDEZ, WHERE HOPEFULLY WE DO MORE SUPPORTING EACH OTHER AND HAVING COALITION LETTERS TO PICK ON ONE OR TWO THINGS VERSUS ALL IN A FREE FOR ALL.

SO I HOPE THAT RESPONDS TO YOUR QUESTION, BUT I THINK THAT SHIFTED OUR THINKING FROM WHAT ARE WE GOING TO CUT NOW TO WHAT'S THE GOVERNOR'S BUDGET GOING TO BE IN JANUARY AND THROUGH THE NEXT FISCAL YEAR, WHICH THEN WE'RE GOING TO BE LOOKING AT OUR STATE LEGISLATIVE DELEGATION TO WORK WITH.

SO HOPE THAT'S RESPONSIVE.

- THANK YOU. WE CERTAINLY HAVE SOME DARK TIMES AHEAD OF US AND WE CERTAINLY HATE BEING THE BEARERS OF BAD NEWS WITH THIS BUDGET FORECAST AFFECTING OUR COUNTY AND WE ARE GOING TO HAVE TO PARTNERSHIP WITH OUR COMMUNITY PARTNERS THAT WE HAVE COLLABORATE AND WORK LIKE WE'VE NEVER DONE BEFORE WITH OUR COMMUNITY PARTNERS.

WITH THAT, I'LL TAKE IT OUT TO THE PUBLIC FOR ANY PUBLIC COMMENT.

ANYONE WISHING TO ADDRESS US ON THIS ITEM? - HOW DOES FOOD GET THAT LAST STEP, TAKE THAT LAST STEP TO THE HANDS OF PEOPLE WHO ARE HUNGRY? FOR 200 FAMILIES AND MORE THAN 600 PEOPLE, MEN, WOMEN AND CHILDREN IN THOSE FAMILIES, I CAN ANSWER THAT QUESTION.

SUPERVISORS, CHAIR, MY NAME IS MIGUEL LESNAR.

I'M A VOLUNTEER AT SANTA CRUZ BIBLE CHURCH.

WE'RE A FOOD PANTRY SUPPORTED BY SECOND HARVEST.

AND EVERY THURSDAY, THOSE PEOPLE COME TO US AND ASK US TO HELP THEM.

WE HAVE 40 VOLUNTEERS.

WE SET UP TABLES AND POP-UPS READY FOR THE FOOD.

WE GO OUT TO TARGET, AND WE PICK UP FOOD THAT WOULD OTHERWISE GO TO LANDFILL.

WE SORT IT. WE WEIGH IT.

WE REPORT ON A SYSTEM COORDINATED BY SECOND HARVEST SO THAT TARGET GETS CREDIT WITH THE STATE OF CALIFORNIA FOR NOT THROWING AWAY THE FOOD.

THE SECOND HARVEST TRUCK COMES AND UNLOADS THOUSANDS OF POUNDS OF FOOD,

[01:50:02]

WHICH WE THEN SORT ACROSS THE TABLES, FIGURE OUT HOW MUCH WE CAN AFFORD TO GIVE TO EACH OF THE FAMILIES THAT WE EXPECT.

AND THEN WE DISTRIBUTE THOSE.

SO OVER THE PERIOD OF THURSDAY OF NOON TO 1:00, WE GIVE OUT FOOD TO WHOEVER NEEDS IT.

WE ASK THEM ONLY FOR THEIR INITIALS, THEIR ZIP CODE.

WE DON'T WANT INFORMATION THAT COULD IMPERIL THEM.

AND WE DO MORE THAN FOOD.

THOSE WHO NEED HELP DEVELOPING A PLAN FOR WHAT HAPPENS TO THEIR CHILDREN IF THEY WERE MOVED.

WE HELP THEM WITH THAT.

THERE'S A GOOD DEAL MORE THAT WE COULD DO TO SUPPORT OUR COMMUNITY AND PEOPLE WHO ARE NOT HUNGRY CAN FOCUS ON THOSE ISSUES.

- GOOD MORNING, I'M LEEANN LUNA, CEO AT MONARCH SERVICES.

THE RELATIONSHIP BETWEEN SECOND HARVEST FOOD BANK AND MONARCH SERVICES IS ABOUT MORE THAN SHARING RESOURCES.

IT IS ABOUT CREATING STABILITY AND DIGNITY FOR FAMILIES WHO ARE REBUILDING THEIR LIVES.

SURVIVORS, MANY OF THEM MOTHERS, OFTEN LEAVE ABUSIVE SITUATIONS WITH NOTHING BUT THE ESSENTIALS AND THE HOPE OF FINDING SAFETY.

IN THOSE FIRST DAYS AND WEEKS, THE ABILITY TO FEED THEIR CHILDREN BECOMES ONE OF THEIR GREATEST WORRIES.

ACCESS TO THE FOOD BANK MEANS THAT THESE MOTHERS CAN PROVIDE A MEAL WITHOUT HAVING TO CHOOSE BETWEEN BUYING FOOD OR PAYING RENT, WITHOUT THE SHAME OF GOING WITHOUT, AND WITHOUT THE ADDED FEAR OF NOT BEING ABLE TO MEET THEIR CHILDREN'S BASIC NEEDS.

MONARCH RELIES ON THE ABILITY TO BRING FOOD FROM SECOND HARVEST INTO OUR EMERGENCY SHELTER, AS WELL INTO EACH OF OUR OFFICE LOCATIONS, SO THAT CLIENTS CAN SELECT FRESH VEGETABLES AND LOAVES OF BREAD TO TAKE HOME WITH THEM.

ALSO, IT'S IMPORTANT TO NOTE THAT WITH THE CHANGES TO MEDI-CAL MANY OF THESE FAMILIES WILL BE INELIGIBLE.

NOURISHMENT BRINGS COMFORT, RESTORES A SENSE OF NORMALCY, AND GIVES FAMILIES THE STRENGTH TO FOCUS ON THE DIFFICULT STEPS AHEAD, HEALING FROM TRAUMA, FINDING HOUSING, SECURING WORK, AND REBUILDING A SAFE LIFE.

WITHOUT THIS PARTNERSHIP, THE CONSEQUENCES WOULD BE PROFOUND.

SURVIVORS AND THEIR CHILDREN COULD GO TO BED HUNGRY.

MOTHERS MIGHT FACE IMPOSSIBLE CHOICES THAT PULL THEM FURTHER INTO CRISIS, LIKE RETURNING TO AN UNSAFE, ABUSIVE HOUSEHOLD.

HUNGER WOULD ADD ANOTHER LAYER OF TRAUMA TO FAMILIES ALREADY CARRYING SO MUCH PAIN.

BY WORKING TOGETHER, FOOD BANKS AND DOMESTIC VIOLENCE ORGANIZATIONS REMIND SURVIVORS THAT THEY ARE NOT ALONE.

PROVIDING FOOD IS NOT JUST ABOUT ENSURING NOURISHMENT.

IT IS ABOUT HOPE, STABILITY, AND THE FOUNDATION THAT EVERY FAMILY NEEDS TO MOVE FORWARD.

- GOOD MORNING TO THE BOARD AND BEST WISHES TO CARLOS AND HIS FUTURE RETIREMENT.

THANK YOU FOR YOUR LEADERSHIP.

MY NAME IS LYNN ROBINSON.

I'M THE EXECUTIVE DIRECTOR AT VALLEY CHURCHES UNITED.

WE SERVE A VERY VULNERABLE POPULATION UP IN THE NORTHERN MOUNTAIN AREA OF SANTA CRUZ COUNTY.

SO ALL OF SAN LORENZO VALLEY, ALL THOSE SMALL COMMUNITIES AND THEN THROUGHOUT SCOTTS VALLEY AND THEN UP TO THE BONNY DOON AREA.

AS YOU HEARD ERICA SAY, HOW MANY YEARS FOR THE FOOD BANK NOW? 53? SO WE WERE BORN OF THE STORMS OF 1982, SO 43 YEARS STRONG FOR US, AND WE WERE PROBABLY ONE OF THE EARLY PARTNER AGENCIES, WITH THE FOOD BANK.

AND IT'S THE TESTIMONY TODAY, ACTUALLY, RANDY, IF ALL THE CREW CAN COME TO MY NEXT BOARD MEETING, THINGS ARE GONNA BLOW UP IN WAYS WE DON'T REALLY EVEN UNDERSTAND YET.

YOU MENTIONED THAT NOW THAT'S WHAT FELIPE HAD JUST SAID TOO WE DON'T EVEN SEE WHAT'S COMING.

BUT THIS PRESENTATION IS SO SOBERING AND WE ARE ONE OF THE BOOTS ON THE GROUND AGENCIES, WITHOUT SECOND HARVEST AND EVERYTHING THAT COMES TO US THROUGH TWICE A WEEK.

WE GET TWO DELIVERIES TWICE A WEEK.

THIS YEAR, ANNUALLY, IT'S BEEN ABOUT AT LEAST 160 POUNDS, 60,000 POUNDS OF FOOD COMING THERE.

WE ALSO DO ALL OF OUR FOOD RECOVERY.

OUR VOLUNTEER DRIVERS, WE'RE VOLUNTEER DRIVEN.

THERE'S THREE OF US THAT ARE EMPLOYEES.

WE HAVE 50 VOLUNTEERS IN ALL CAPACITIES.

DRIVERS EVERY WEEKDAY PICKING UP FROM OUR LOCAL GROCERY STORES.

SO EVEN FOR OUR CLIENTS, GETTING THAT LOAF OF BREAD, GETTING THAT GALLON OF MILK, AND GETTING THAT CARTON OF EGGS, $20 EASILY RIGHT THERE THAT THEY'RE NOT SPENDING.

AND WE ENCOURAGE OUR CLIENTS TO BE COMING REGULARLY SO THAT THEIR DOLLARS ARE STRETCHED FURTHER.

BUT I AM ALREADY OUT THERE NOW BECAUSE OF THE THINGS HAPPENING AT THE FEDERAL LEVEL.

I'M OUT THERE SHOPPING EVERY DAY TRYING TO GET THE, BECAUSE WE CAN'T GET THE PROTEIN THAT'S NOT ABLE TO COME FROM THE FOOD BANK.

WE ARE VERY MUCH IN NEED OF OUR FOOD BANK AND OUR PARTNERSHIP.

THANK YOU VERY MUCH.

- GOOD MORNING.

MY NAME IS LINDA LEE.

[01:55:03]

I'M A VOLUNTEER WITH THE WELCOMING NETWORK, WHICH IS A 100% VOLUNTEER COMMUNITY WORKING WITH SECOND HARVEST FOOD BANK AND RESURRECTION CHURCH.

WE HAVE OVER 100 MEMBERS IN OUR WELCOMING NETWORK, AND OUR PURPOSE IS TO ASSIST ASYLUM SEEKERS AND REFUGEES.

PART OF THAT UIS COLUMN ON ALL OF THE GRAPHS WHERE PEOPLE REALLY ARE FACING FOOD INSECURITY TO THE HIGHEST LEVEL.

AT ANY RATE, ONCE A MONTH, WE WORK WITH SECOND HARVEST TO GET A DELIVERY TO RESURRECTION CHURCH, AND WE PROVIDE OUR PEOPLE WITH OUR FAMILIES FROM, OUR FAMILIES COME FROM EVERYWHERE, AFGHANISTAN, UKRAINE, RUSSIA, MULTIPLE COUNTRIES IN CENTRAL AMERICA.

AND WE HAVE TEAMS THAT WORK WITH EACH INDIVIDUAL FAMILY.

AND BECAUSE WE'RE SMALL, WE'RE ABLE TO DELIVER THE PRODUCE AND THE THINGS THAT WE GET FROM SECOND HARVEST FOOD BANK BECAUSE MANY OF OUR PEOPLE ARE AFRAID TO COME.

THEY'RE AFRAID TO BE OUT ON THE STREET IN ANY WAY, SHAPE OR FORM.

SO IT'S A WONDERFUL PARTNERSHIP WITH SECOND HARVEST.

WE GREATLY APPRECIATE EVERYTHING THAT THEY DO WITH US.

OUR WELCOMING NETWORK HAS ALSO, BECAUSE OF THE LACK OF PROTEIN THAT WE'RE ABLE TO GET IN THE LAST FEW MONTHS, WE'VE INCREASED OUR BUDGET TO BE ABLE TO BUY IT AS WELL.

THANK YOU VERY MUCH FOR CONSIDERING IT.

- GOOD MORNING.

MY NAME IS DANIELLE SALAK.

I'M THE HEALTH SERVICES DIRECTOR AT SANTA CRUZ COMMUNITY HEALTH WHERE EVERY MONTH WE DISTRIBUTE OVER A THOUSAND POUNDS OF FRESH FOOD AND SHELF STABLE PRODUCTS TO AT LEAST THAT MANY COMMUNITY MEMBERS, OUR PATIENTS AND THEIR FAMILIES.

BUT WE ARE SO MUCH MORE THAN THAT.

WE ARE A ONE-STOP-SHOP MODEL HEALTH CARE CLINIC, INCLUDING EARLY INTERVENTION PROGRAMS, MENTAL HEALTH CARE, CASE MANAGEMENT, SUBSTANCE USE DISORDER SUPPORT, AND SO MUCH MORE IN ADDITION TO FULL SCOPE PRIMARY CARE.

PEOPLE COME TO US WEEKLY TO RECEIVE THEIR FOOD DISTRIBUTION, THEY'RE INTRODUCED TO A WORLD OF CARE THAT THEY MIGHT NOT EVEN KNOW EXISTED, LET ALONE KNOW THAT THEY WERE ELIGIBLE TO ACCESS OR THAT THEY HAVE OR ARE AT RISK OF LOSING.

BUT WHEN YOU DON'T KNOW WHERE YOUR FOOD IS COMING FROM AND WHEN YOU'RE CHRONICALLY FACING FOOD INSECURITY, THERE IS NOTHING ELSE.

YOU'RE NOT SHOWING UP TO PREVENTATIVE CARE APPOINTMENTS.

YOU'RE PROBABLY NOT EVEN SHOWING UP TO YOUR REGULAR HEALTH CARE APPOINTMENTS.

THAT WOULD KEEP YOU HEALTHIER LONGER AND ULTIMATELY ACCESSING LESS SUPPORTS BECAUSE THE HUNGER IS ALL THAT THERE IS.

AND SO THE STRESS AND THE BURDEN ON ALL OF THE OTHER SERVICE PROVIDERS IN THE COUNTY, ALL OF OUR PARTNERS HERE THAT FORM THE SAFETY NET OF CARE IN THE COUNTY, THAT BURDEN INCREASES EXPONENTIALLY IN ORDER FOR US TO FIND PEOPLE, TO KEEP THEM ENROLLED, TO HELP THEM UNDERSTAND THEIR RESPONSIBILITIES AND HOW THEY CAN ACCESS SERVICES.

WHEN THEY ARE UNABLE TO DO SO FOR THEMSELVES BECAUSE THEY'RE SINGULARLY FOCUSED ON THEIR CHRONIC FOOD INSECURITY.

AND THESE ARE THE CONDITIONS THAT THESE CUTS ARE ALREADY STARTING TO DEMONSTRATE THROUGHOUT SANTA CRUZ.

SANTA CRUZ COMMUNITY HEALTH BELIEVES THAT HEALTHCARE IS A HUMAN RIGHT.

AND THE RIGHT TO LIVE FREE FROM FEAR, WHETHER ABOUT GOING HUNGRY OR LOSING ALL YOUR MEDICAL ACCESS, IS THE FOUNDATIONAL LEVEL TO BE ABLE FOR PEOPLE TO FIND A WAY TO LIVE THEIR LIVES IN A HEALTHY, AND PHYSICALLY AND MENTALLY STABLE CAPACITY AND INDIGNITY.

WE'RE LOSING THE ABILITY TO REACH PEOPLE AND IT'S ABOUT THE FOOD, BUT IT IS NOT JUST ABOUT THE FOOD.

THANK YOU FOR YOUR CONSIDERATION.

- GOOD MORNING, CHAIR HERNANDEZ AND ESTEEMED MEMBERS OF THE BOARD, ANGELA CHESTNUT WITH SECOND HARVEST FOOD BANK.

I WANT TO THANK YOU FOR PROVIDING THE OPPORTUNITY FOR OUR ORGANIZATION AND ITS PARTNER AGENCIES TO PRESENT ON THE IMPORTANCE OF NOURISHING OUR NEIGHBORS IN SANTA CRUZ COUNTY.

AS WE FACE THE CHALLENGES POSED BY RECENT FEDERAL CUTS I URGE YOU TO PRIORITIZE FUNDING FOR FOOD SECURITY IN OUR UPCOMING FISCAL CONSIDERATIONS.

ACCESS TO NUTRITIOUS FOOD IS A FUNDAMENTAL NEED FOR OUR COMMUNITY AND IT IS IMPERATIVE THAT WE ADDRESS THIS ISSUE PROACTIVELY.

BY PRIORITIZING FUNDING FOR FOOD ASSISTANCE PROGRAMS, WE CAN ENSURE THAT NO RESIDENT IN SANTA CRUZ COUNTY GOES HUNGRY AND THAT WE SUPPORT THE HEALTH AND WELL-BEING OF OUR ENTIRE COMMUNITY.

[02:00:01]

I STRONGLY ADVOCATE FOR YOUR CONTINUED COMMITMENT TO THIS CRITICAL ISSUE.

TOGETHER WE CAN MAKE A SIGNIFICANT IMPACT AND HELP THOSE WHO NEED IT THE MOST.

BECAUSE AFTER ALL, ISN'T FOOD SUCH A BASIC NEED? THANK YOU FOR YOUR ATTENTION TO THIS IMPORTANT MATTER.

- HELLO, TONY NUNEZ, MARKETING AND COMMUNICATION DIRECTOR FOR COMMUNITY BRIDGES, AND I ALSO SERVE AS BOARD PRESIDENT FOR THE PAJARO VALLEY HEALTH CARE DISTRICT, WHICH OVERSEES WATSONVILLE COMMUNITY HOSPITAL.

FIRST OFF, WELCOME TO THE HEART OF THE COUNTY.

IT'S GREAT TO SEE EVERYONE DOWN HERE IN WATSONVILLE AND EXPECT ALL OF YOU TO PATRON ONE OF OUR BUSINESSES BEFORE YOU GO BACK HOME.

SECOND, TODAY, I THINK, AND YOU'RE GOING TO CONTINUE TO HEAR A LOT OF NUMBERS AND A LOT OF BAD NEWS.

AND I'M HERE TO KIND OF PUT THINGS INTO PERSPECTIVE FOR YOU ALL ON WHAT THIS ACTUALLY MEANS FOR PEOPLE AND FOR OUR COMMUNITY SPECIFICALLY WITH HEALTH IN OUR COMMUNITY.

SO ALL OF THOSE NUMBERS THAT YOU SAW MEAN THAT FEWER PEOPLE ARE GOING TO BE ABLE TO HAVE ACCESS TO HEALTH INSURANCE.

WHAT DOES THAT MEAN? WHEN PEOPLE LOSE HEALTH INSURANCE, THAT DOESN'T MEAN THAT THEY DISAPPEAR, RIGHT? THEY CONTINUE TO GO GET THEIR HEALTH CARE.

THEY CONTINUE TO SHOW UP AT HOSPITALS.

AND THIS MEANS THAT HOSPITALS ACROSS THE COUNTY ARE GOING TO BE FOOTING THAT BILL.

AND SO THAT SETS OFF A REAL AWFUL CHAIN REACTION OF IMPACTS.

INSURANCE RATES WILL LIKELY GO UP.

AS A RESULT, SOME SERVICES WILL LIKELY BE CUT FROM HEALTHCARE PROVIDERS.

ACCESS WILL BE LOST FOR PEOPLE ACROSS OUR COUNTY, AND PEOPLE ARE GOING TO SUFFER.

PEOPLE ARE GOING TO BE LESS HEALTHY.

PEOPLE ARE NOT GOING TO GET THE CARE THAT THEY NEED IN ORDER TO BE AT WORK, AT SCHOOL, AND EVERYWHERE ELSE THAT THEY NEED TO BE.

SO WE CAN TAKE STEPS TO ADDRESS THIS AS NICOLE SAID.

WE AT COMMUNITY BRIDGES, WE'RE ALREADY WORKING WITH THE COUNTY AND THE ALLIANCE ON OUTREACH AND EDUCATION.

AND THEN ALSO AT THE HOSPITAL, WE ARE ALREADY LOOKING INTO POTENTIAL PARTNERSHIPS WITH OTHER HEALTHCARE PROVIDERS IN THIS AREA TO HELP BETTER OUR FINANCIAL OUTLOOK AS HR1 CONTINUES ITS IMPACT.

SO WHAT CAN YOU DO AS COUNTY BOARD OF SUPERVISORS? I THINK YOU CAN LOOK AROUND AT THE REST OF THE COUNTIES ACROSS CALIFORNIA AND TAKE SOME...

AND SEE WHAT THEY'RE DOING AND SEE IF ANY OF WHAT THEY'RE DOING AND THEIR INITIATIVES CAN WORK FOR YOU.

- MY NAME IS BECKY STEINBRENNER AND THIS IS ALL DARK, VERY DEPRESSING INFORMATION.

I RECENTLY WAS IN THIS PLACE, LAST WEEK WITH THE WATSONVILLE CITY COUNCIL AND HEARD THE SECOND HARVEST PRESENTATION AND IT WAS MAYOR OROZCO, SUPERVISOR HARNANDEZ, YOUR ANALYST WHO SAID, YOU'RE SERVING HALF OF THE WATSONVILLE POPULATION.

THAT WAS PRETTY SOBERING.

SO WHAT CAN WE DO? MY MOM TOLD ME ABOUT DURING THE SECOND WORLD WAR WHEN THERE WERE SHORTAGES OF FOODS, RATIONS.

THE GOVERNMENT ENCOURAGED PEOPLE TO PLANT VICTORY GARDENS.

THE PEOPLE GOT TOGETHER.

THEY WORKED TOGETHER.

AND THEY GREW SOME OF THEIR OWN FOOD.

AND THEY GREW EXCESS AND SHARED IT WITH THEIR NEIGHBORS.

AND IT WAS THAT SENSE OF INVOLVEMENT BY THE COMMUNITY THAT NOT ONLY HELPED PEOPLE FEEL LESS HELPLESS, BUT IT ALSO FORGED RELATIONSHIPS AMONG THE COMMUNITY MEMBERS.

AND I THINK THAT WOULD GO A LONG WAY TO HELP OUR YOUTH GET OUT OF DEPRESSION.

IF OUR COUNTY PARKS CAN ALSO SUPPORT COMMUNITY GARDENS AND TRAININGS AND PROJECTS AROUND THEM AND INVOLVE OUR YOUTH, INVOLVE OUR SENIORS WHO HAVE A WEALTH OF INFORMATION AND PARTNER THAT.

THAT'S GONNA HELP EVERYBODY DEAL WITH DEPRESSION AND ALSO GROW SOME FOOD.

WHEN YOU ARE ABLE TO TAKE ACTION YOURSELF, IT HELPS A LOT.

SO I AM ENCOURAGING YOUR BOARD TO TAKE ACTION LIKE THAT SUPPORT PROGRAMS LIKE THAT, ENCOURAGE OUR COUNTY PARKS TO HOLD COMMUNITY GARDEN WORKSHOPS.

IS THERE ANYONE ONLINE THAT WOULD LIKE TO ADDRESS US? - YES, CHAIR.

THANK YOU FOR YOUR PATIENCE.

[02:05:01]

RAYMOND, YOUR MICROPHONE'S NOW AVAILABLE.

- CHAIR, MEMBERS OF THE BOARD, THANK YOU.

MY NAME IS RAY CANCINO, CEO OF COMMUNITY BRIDGES.

AND I'D FIRST LIKE TO START THAT FOOD INSECURITY DOES NOT LOOK THE SAME FOR EVERY CALIFORNIAN.

THAT IS WHY WE NEED DIFFERENT MODES OF DELIVERING FOOD AND NUTRITION ACROSS ALL OUR COMMUNITIES, FROM FOOD BANKS FOR FAMILIES IN CRISIS TO WIC TO SUPPORT MOTHERS AND CHILDREN THROUGH COUPONS AND AT THE STORE AFTER HOURS.

TO MEALS ON WHEELS FOR THE FASTEST GROWING POPULATION THAT CAN'T COOK THEIR OWN MEALS AT TIMES.

AND FOR THE FASTEST GROWING POPULATION IN SANTA CRUZ COUNTY.

THAT IS WHY THIS PAST MAY, ONE OF THE FEW ONLY ADD-ONS AT THE STATE MAY REVISE WAS A $58 MILLION GRANT TO FOOD BANKS.

AND I THINK THAT IT BEHOOVES YOU TO THINK ABOUT, GOING INTO YOUR RAINY RESERVE TO ALSO ADD TO THAT BUCKET AND SUPPORT OUR LOCAL FOOD BANK.

BUT WITH THE LOOMING THREAT OF FEDERAL GOVERNMENT SHUTDOWN, YOU KNOW, IT'S ALSO IMPORTANT FOR ME TO HIGHLIGHT THAT PROGRAMS LIKE OUR WIC PROGRAM WILL ONLY HAVE 30 DAYS OF SERVICE.

THAT MEANS THAT DEPENDING ON THE LENGTH OF THE FEDERAL SHUTDOWN WILL RESULT IN POTENTIAL NOT ONLY LOSS OF SERVICES AND FURLOUGHING OF STAFF BUT POTENTIALLY LOSING COUPONS AND FOOD VOUCHERS TO OVER 6,000 COMMUNITY MEMBERS THAT RELY ON WIC.

SO IT'S IMPORTANT FOR YOU TO UNDERSTAND THAT THE IMPACTS ARE VAST AND WIDE.

IT'S ALSO IMPORTANT TO NOTE THAT MEALS ON WHEELS DID NOT RECEIVE ANY ADDITIONAL FUNDING AND WE'VE RECEIVED THROUGH THE COURSE OF TIME CUTS FROM STATE, LOCAL AND OVERALL, EATING INTO BASICALLY COST OF LIVING ADJUSTMENTS.

SO AS WE TALK ABOUT THIS, I THINK WE WANNA JUST HIGHLIGHT THAT HUNGER WILL NOT WAIT FOR CONGRESS OR LOCAL GOVERNMENT TO ACT.

FAMILIES, CHILDREN, AND SENIORS NEED FOOD EVERY SINGLE DAY, AND SOME SERVICES MUST REMAIN OPEN AND AVAILABLE, AND WE RISK LOSING THOUSANDS OF INDIVIDUALS TO HUNGER IF WE FAIL TO ACT.

SO THANK YOU FOR YOUR TIME.

SORRY I COULD NOT BE THERE IN PERSON TODAY.

- CALL IN USER THREE, YOUR MICROPHONE'S NOW AVAILABLE.

- MARILYN GARRETT, THANK YOU FOR YOUR INFORMATIVE, THOROUGH REPORT.

VERY DIRE.

I THINK IT COULD BE TITLED SOMETHING LIKE WAR ON THE POOR, DICTATORSHIP OF CORPORATE MILITARY BILLIONAIRES AND THEIR GESTAPO ICE THUGS WHO KIDNAP AND DISAPPEAR PEOPLE OF COLOR.

SOMETHING IS VERY WRONG WITH THIS WHOLE SYSTEM AND WHAT WE'RE LEFT WITH IS FIGHTING OVER LEFTOVER CRUMBS AFTER THEY TAKE ALL THE WEALTH FROM COMMUNITIES AND FROM THE POOR.

I THINK OF FOOD, NOT BOMBS.

THE CO-FOUNDER IS KEITH MCHENRY, WHO'S BEEN, HE LIVES HERE LOCALLY, ARRESTED ALMOST 100 TIMES FOR FEEDING THE POOR AND OBJECTING TO WAR.

THE WAR ECONOMY IS A THIEVERY CAUSING SO MUCH POVERTY.

AND WHEN YOU TALK ABOUT MENTAL HEALTH ISSUES, POVERTY, HUNGER, TOXIC EXPOSURE, INCLUDING FROM BROADBAND, RADIATION DOCUMENTED HARM, PESTICIDES, OVER 100 TOXIC CHEMICALS FROM OFF-LANDING FIRE ARE UNAPPRECIATED YET DOCUMENTED CAUSAL FACTORS OF MENTAL HEALTH ISSUES.

AND I THINK PEOPLE WILL LIKELY STARVE LOCALLY GIVEN YOUR REPORT AND THE CUTS.

AND I THINK OF THE WARS U.S.

IS FUNDING TO STARVE THE PEOPLE IN PALESTINE AND OTHER PLACES.

THE WAR SEEMS TO BE HERE. - THANK YOU.

- I SEE NO FURTHER SPEAKERS ONLINE, CHAIR.

- WITH THAT, I'LL BRING IT BACK TO THE BOARD FOR ANY COMMENTS AND QUESTIONS.

SUPERVISOR MARTINEZ.

- THANK YOU, CHAIR. THANK YOU, CHAIR.

AND THANK YOU TO EVERYBODY WHO IS HERE TODAY AND WHO CAME TO SPEAK WITH ALL OF US.

[02:10:02]

I JUST, I FEEL LIKE I NEEDED TO START BY PAUSING AND RECOGNIZING THE MAGNITUDE OF WHAT YOU ARE SHARING TODAY.

I HEAR THE EMOTION IN YOUR VOICES.

I FEEL THE SADNESS IN THE ROOM, BECAUSE WHAT WE ARE FACING IS DEEPLY SADDENING.

I HAVE DEDICATED MY LIFE AND MY CAREER, LIKE MANY OF YOU TO BUILDING A SAFETY NET FOR OUR COMMUNITY.

SO EVERYONE HAS THEIR BASIC NEEDS MET.

AND WE'RE SEEING A DISMANTLING OF THAT RIGHT BEFORE OUR EYES.

AND FOR THOSE OF US WHO HAVE WORKED, ROLLED UP OUR SLEEVES, AND HAVE BEEN ON THE GROUND SERVING OUR COMMUNITY, WE KNOW THE NAMES AND THE FACES AND THE INDIVIDUALS WHO ARE SCARED TODAY AND WHO ARE MOST AT RISK.

AND IT'S INCREDIBLY DIFFICULT TO BE SITTING UP HERE UNDERSTANDING THE CHOICES THAT WE AS A COMMUNITY ARE GONNA HAVE TO MAKE AS THIS CONTINUES TO ROLL OUT.

AND I JUST WANT TO START BY NAMING MY COMMITMENT TO PRESERVING WHAT WE CAN AND MAKING THOSE DECISIONS IN PARTNERSHIP WITH COMMUNITY.

BECAUSE WE NEED EVERYBODY'S VOICES TO HELP NAVIGATE WHERE WE GO FROM HERE.

YOU KNOW, I WAS LEADING A LARGE HEALTHCARE ORGANIZATION WHEN THE COVID PANDEMIC HIT.

AND IN SOME WAYS THIS FEELS LIKE COVID TIMES, SELF-INFLICTED COVID TIME BY SOME PEOPLE IN THE FEDERAL ADMINISTRATION.

BUT WHAT'S DIFFERENT ABOUT THAT IS THAT, YOU KNOW, IN COVID, YOU KNOW, WE SAW IT COMING, BUT THEN IT WAS A VERY SUDDEN SHUTDOWN OF FUNDING AND SERVICES AND ABILITY TO MEET NEEDS.

AND SO THERE WAS AN URGENCY FOR ALL OF US TO GATHER REMOTELY AND FIGURE OUT HOW TO PITCH IN AND BE A PART OF SOMETHING.

AND WHAT'S DIFFERENT HERE, YOU KNOW, I HEARD IT, I HEARD IT COMPARED TO A TSUNAMI WHERE AN EARTHQUAKE HAS HIT THOUSANDS OF MILES AWAY, BUT THE WAVE ISN'T COMING FOR ANOTHER DAY AND A HALF.

SO THERE ARE PEOPLE STILL PLAYING ON THE BEACH.

OUR COMMUNITY DOESN'T QUITE YET KNOW THE MAGNITUDE OF WHAT'S HAPPENING.

AND SO MY HOPE IS THAT THROUGH PRESENTATIONS LIKE THIS AND THROUGH ENGAGEMENT, THROUGH ALL OF OUR COMMUNICATION NETWORKS, WE SERVE TO EDUCATE OUR PUBLIC ABOUT WHAT'S ON THE HORIZON SO THEY CAN START PLANTING THEIR GARDENS.

THEY CAN START WORKING IN COMMUNITY TO FILL THE GAPS.

YOU KNOW, WE HEARD A WIDE RANGE OF IMPACTS.

I MEAN, AND WE'RE JUST SCRATCHING THE SURFACE.

I'M SURE PEOPLE IN COVERED CALIFORNIA HAVEN'T REALLY RECOGNIZED HOW THEIR PREMIUMS MAY CHANGE OR IF THEY'RE ELIGIBLE AGAIN.

I MEAN, THESE ASSET LIMITS HAVE, HAS NOTIFICATION GONE TO FOLKS WHO ARE GOING TO BE IMPACTED BY A NEW ASSET LIMIT.

I'M NOT ASKING YOU TO ANSWER THAT QUESTION TODAY.

I'M GIVING THOSE AS EXAMPLES OF THE DETAILS UNDERNEATH WHAT WE'RE HEARING AND HOW MUCH IT'S GOING TO IMPACT THOUSANDS OF PEOPLE.

I WANT TO AGAIN THANK THE COMMUNITY PARTNERS WHO ARE HERE TODAY.

IT WAS SUCH A HELPFUL REMINDER ABOUT THE IMPACT OF OUR FOOD SAFETY NET.

YOU KNOW, IT'S BEEN WORKING SO WELL FOR SO MANY YEARS THAT WE OFTEN DON'T GET THIS TYPE OF PRESENTATION.

SO I'M REALLY GLAD YOU'RE HERE AND I FEEL DEEPLY COMMITTED TO ENSURING THAT THAT SAFETY NET CONTINUES.

SO THANK YOU FOR THE PARTNERS WHO SPOKE TO THAT.

AS IT RELATES TO OUR HEALTHCARE PARTNERS, YOU KNOW THE AFFORDABLE CARE ACT REALLY CHANGED A LOT OF THINGS.

WE USED TO THINK OF HEALTH CARE AS PRIMARY CARE ONLY, THE HOSPITAL, THE CLINICS, RIGHT, ARE MOST IMPORTANT PLACES WHERE WE SEE DOCTORS.

AND WHAT THE AFFORDABLE CARE ACT DID IS THAT IT EXPANDED THE DEFINITION OF HEALTH CARE AND EXPANDED THE COVERAGE, THE REVENUE SOURCES FOR HEALTH CARE, SUCH THAT BEHAVIORAL HEALTH, HOUSING SUPPORT, DENTAL SUPPORT,

[02:15:06]

A LOT OF THESE OTHER SERVICES THAT ARE CRITICAL TO HEALTHCARE WERE COVERED.

AND IN REVIEWING THE STAFF REPORT AND THE PRESENTATION TODAY, THERE'S A REAL, OBVIOUS FOCUS ON THE PRIMARY CARE.

WHAT MY HOPE IS AND MY ASK IS FOR OUR NETWORK AND OUR COMMUNITY IS THAT WE'RE ENGAGING ALL OF THOSE PARTNERS.

THE BEHAVIORAL HEALTH CONTRACTORS WHO OFTEN ARE KIND OF A FOOTNOTE IN THE PROCESS OF ALL OF THIS.

THEY ARE AN EXTENSION OF THE COUNTY'S BEHAVIORAL HEALTH SERVICES SO MAKING SURE THAT THEY'RE AT THE TABLE.

OUR DENTAL SERVICES WAS WONDERFUL TO SEE DIENTES DURING PUBLIC COMMENT.

BUT THESE ARE THE TYPE OF PARTNERS THAT WE'RE GOING TO NEED TO ENSURE WE'RE DOING JUST, WE'RE BEING JUST AS DILIGENT TO ENSURE THAT THAT GAP IS NAMED.

AND THEN WE START IDENTIFYING HOW TO FILL THAT GAP.

A FOLLOW-UP QUESTION TO THAT THROUGH THE AFFORDABLE CARE ACT IS THAT, YOU KNOW, WELL, IT'S JUST NOT THROUGH THE AFFORDABLE CARE ACT, THE CALAIM AND THE 1115 WAIVER.

I'M WONDERING IF ANYBODY HAS A SENSE OF WHAT WE CAN EXPECT FOR CALAIM.

SO FOLKS WHO UNDERSTAND THAT EXPANDED COVERAGE FOR A NUMBER OF PEOPLE, ALSO ALLOWED OUR PARTNERS TO EXPAND ENHANCED CARE SUPPORT, CASE MANAGEMENT, COMMUNITY SUPPORTS FOR VULNERABLE FOLKS.

DO WE ANTICIPATE THAT GOING ANYWHERE? IN THE NEXT TWO YEARS? - YOU SAID IT, WE HOPE.

YES, SO I KNOW OUR STATE ASSOCIATIONS, KNOW OUR CBHDA IS WORKING VERY CLOSELY WITH DHCS, STATE DHCS TO ENSURE THAT THAT GOES THROUGH BECAUSE ALL THOSE SERVICES ARE CRITICAL FOR ALL OF US AS WE WORK TOGETHER.

SO THERE'S SOME LIGHT AT THE END OF THE TUNNEL.

- I'LL JUST SAY THAT I KNOW THAT THE DEPARTMENT OF HEALTHCARE SERVICES, AS IT PERTAINS TO THE COMMUNITY SUPPORT THAT YOUR FOOD BANK IS PROVIDING TO MEDI-CAL RECIPIENTS IT'S CLEAR THAT THE STATE IS INTENDING TO CONTINUE THAT SERVICE THROUGH AN IN LIEU OF SERVICE AS OPPOSED TO A ACTUAL WAIVER SERVICE.

GO AHEAD.

SO AT LEAST FOR NOW, I THINK I WOULD SAY WE CAN PLAN ON THAT.

BUT, YOU KNOW, THINGS ARE MOVING SO QUICKLY AND I'M SURE THE STATE WILL HAVE TO MAKE DECISIONS AS YOU WILL AS THEY'RE TRYING TO FIGURE OUT WHAT DO WE KEEP, WHAT DO WE NOT.

SO WE'RE TRACKING THAT.

BUT IT'S CLEAR TO ME THE STATE HAS BEEN VERY DILIGENT IN TRYING TO UNDERSTAND HOW DO THEY MAINTAIN THE HEALTH CARE SYSTEM THAT HAS BEEN BUILT THROUGH THIS CALAIM PROCESS IN AS MUCH AS POSSIBLE IS MY SENSE FROM WHAT I'VE BEEN READING AND THE CONVERSATIONS I'VE BEEN HAVING WITH STATE LEADERS.

RANDY, ANYTHING ELSE YOU WANT TO ADD? - I WAS JUST GOING TO SAY AT 1:30 TIME CERTAIN PRESENTATION TODAY, I'LL BE UP HERE AGAIN WITH DR. RATNER TALK ABOUT HOUSING FOR HEALTH, WHERE WE PLAN TO TALK ABOUT THE MEDICAID FUNDING SOURCE AND THE WAIVERS.

I WOULD JUST SAY I WANT TO DEFER TO HEALTH CARE BECAUSE THEY'RE THROUGH THEIR PARENT STATE ASSOCIATION REALLY THE LEAD ON THIS.

BUT I WANT TO PIGGYBACK ON SOMETHING ELISA BENSON SAID IN THE INTRODUCTION.

JUST BECAUSE THE FEDERAL GOVERNMENT HAS AUTHORIZED A WAIVER TO THE STATE OF CALIFORNIA AND PAST PRACTICE HAS BEEN FOR EXAMPLE, PUBLIC NOTICES AND PUBLIC HEARINGS ARE NEEDED TO HAVE THE FEDERAL GOVERNMENT TAKE ACTION DOES NOT MEAN THAT'S THE WAY THE FEDERAL GOVERNMENT IS GOING TO BEHAVE.

SO I AND MY STATE ASSOCIATION MEET WITH THE DHCS DIRECTOR EVERY SINGLE MONTH AND THE PUBLIC MESSAGING IS CONFIDENCE AND DATES AND THE WAIVER DOESN'T EXPIRE TO THIS DATE.

I JUST FEEL LIKE WE NEED TO BE PRETTY CANDID THAT WE DON'T KNOW HOW TO PREDICT HOW THE FEDERAL GOVERNMENT WOULD BEHAVE.

AND MOST OF THE WAIVERS THAT CALIFORNIA HAS BEEN GRANTED TO DO ALL THE INNOVATIVE WORK BASED ON THE MEDICAID FUNDING STREAM, I DON'T FEEL IT'S RESPONSIBLE FOR US TO ASSUME THOSE WILL HOLD BECAUSE WE KNOW THE CURRENT ADMINISTRATION DOES NOT LIKE OUR STATE.

SO I JUST DON'T WANT TO BE, UM, CATASTROPHIC IN MY THINKING.

I THINK THAT'S A PRAGMATIC COMMENT THAT, AND YOU'LL HEAR MORE TODAY SPECIFICALLY IN THE HOUSING FOR HEALTH SPACE.

HOW SO MUCH OF WHAT WE'VE BUILT UP BASED ON WHAT I THINK PART OF YOUR QUESTION IS, WE DON'T KNOW.

AND I THINK WE HAVE TO PLAN FOR SOME WORST CASE SCENARIOS.

AND I THINK THAT'S A LOT OF STATE AND FEDERAL ADVOCACY WITH OUR LEGISLATIVE BODIES.

- THANK YOU. IT'S HELPFUL FOR US TO CONSIDER AS WE'RE THINKING ABOUT OUR PLANNING MOVING FORWARD.

YOU KNOW, OUR COMMUNITY-BASED ORGANIZATION NETWORK, ALL THE MEMBERS OF THE HEALTH IMPROVEMENT PARTNERSHIP, FOR EXAMPLE, HAVE WORKED REALLY HARD TO TAKE ADVANTAGE OF THE FUNDING SOURCES THROUGH CALAIM, RIGHT? BUILDING ECM AND CS SERVICES OUT, NEARLY EVERY COMMUNITY-BASED ORGANIZATION IS NOW OFFERING

[02:20:02]

SOME LEVEL OF THOSE SERVICES.

AND SO SEEING THEM THAT ROLL BACK, NOT ONLY DOES IT DECREASE COVERAGE OF THE FOLKS THAT THOSE ORGANIZATIONS ARE SERVING, BUT IT ALSO INCREASES A REVENUE GAP IN THOSE ORGANIZATIONS, WHILE WE'RE GONNA BE SEEING AN INCREASE OF FAMILY SEEKING SERVICES BECAUSE OF ALL THESE OTHER IMPACTS.

AND SO IT'S REALLY SCARY AND CONCERNING TO THINK ABOUT.

WHILE I'M TALKING ABOUT COMMUNITY PARTNERS, YOU KNOW, I DO WANT TO ASK A LITTLE BIT FURTHER ABOUT, UM, THE PERSON CENTERED CONVENINGS THAT YOU REFERENCED IN THE STAFF REPORT.

CAN YOU SHARE KIND OF YOUR PRELIMINARY THINKING ABOUT WHAT THESE MEETINGS ARE AND THEIR INTENT? - OF COURSE, THANK YOU FOR THAT QUESTION.

SO BUILDING FROM SOME OF THE COMMENTS AND QUESTIONS FROM THIS BOARD, BACK IN THE BUDGET HEARINGS AND PUBLIC COMMENT THERE'S EYES HAVE BEEN WIDE OPEN THAT THESE QUESTIONS AND CHALLENGES AHEAD, WE'RE AHEAD.

SO IN THE TIME SINCE THOSE JUNE HEARINGS WE HAVE STARTED HAVING MORE CONVERSATIONS WITH OUR COMMUNITY PARTNERS ABOUT HOW TO START THAT DIALOGUE DIFFERENTLY AROUND, OKAY, WE KNOW THESE THINGS ARE HAPPENING.

HOW DO WE UNDERSTAND THE IMPACTS AND THE CHALLENGES AND DARE I SAY THE OPPORTUNITIES TO COME TOGETHER ON THOSE DIFFERENTLY.

AND ONE OF THE THINGS WE'VE BEEN TALKING ABOUT IS OF COURSE WE HAVE TO UNDERSTAND THIS FROM AN ORGANIZATIONAL, A SYSTEM A PROGRAM PERSPECTIVE.

RANDY AND KIMBERLY HAVE TO BUILD OUT THEIR WORK ELIGIBILITY MECHANISMS. BUT WE ALSO TALKED ABOUT THE FACT THAT SO MANY OF OUR FAMILIES SO MANY OF OUR COMMUNITY MEMBERS THEY'RE FEELING THIS FROM MULTIPLE SYSTEMS, WHETHER IT'S THROUGH IMPACTS IN THE EDUCATION SYSTEM, WHETHER IT'S IMPACTS IN THE COUNTY SAFETY NET, WHETHER IT'S IMPACTS FROM IMMIGRATION.

SO IN THOSE VERY, I'LL JUST SAY, GENTLE, BRAINSTORMING CONVERSATIONS, WE ALL HAVE THOUGHT WE HAVE TO APPROACH THESE QUESTIONS DIFFERENTLY.

AND ONE OF THOSE IDEAS FOR THAT FIRST CONVENING, IS TO REALLY TAKE IT FROM NOT FROM OUR SYSTEMS, BUT FROM WHAT IS HAPPENING TO A FAMILY, WHAT IS HAPPENING TO OUR RESIDENTS AND UNDERSTANDING THE CUMULATIVE IMPACTS THAT, YOU KNOW, COUNTY OFFICE OF EDUCATION AND ALL OUR SCHOOL DISTRICTS AND OUR SCHOOLS ARE FEELING, WHAT OUR HEALTH SYSTEM IS FEELING, WHAT OUR COMMUNITY SUPPORT AND WELFARE ORGANIZATIONS ARE FEELING SO WE ALL UNDERSTAND WHAT'S GOING ON.

SO THE THOUGHT IS DOING THAT FIRST CONVERSATION, A DATA WALK FROM THE PERSPECTIVE OF OUR COMMUNITIES ACCESSING OUR SERVICES.

AND WHILE THAT SOUNDS A LITTLE, A LOT, A LITTLE, A LOT, WE ALSO THINK THAT'S THE WAY WE CAN BETTER UNDERSTAND WHERE THE GAPS ARE, WHO'S BEING AFFECTED FIRST, AND HOW DO WE HAVE DIFFERENT KINDS OF CONVERSATIONS ABOUT THE PROBLEMS, HOW TO SOLVE THE PROBLEMS, EITHER INCREMENTALLY WITHIN THE SYSTEMS WE HAVE, OR QUITE FRANKLY, WHEN WE REALIZED WE CAN'T SOLVE IT, HOW DO WE COME TOGETHER DIFFERENTLY? ALL OF COVID, ALL OF VENUS DISTILLERY MAKING HAND SANITIZER DURING COVID.

HOW ARE WE GOING TO ACTUALLY DO THINGS DIFFERENTLY LOCALLY, USING THE RESOURCES WE HAVE? SO THE IDEA IS STARTING THE CONVERSATION FROM A DIFFERENT POINT.

WE'D LOVE TO DO THAT.

IF THE BOARD IS COMFORTABLE WITH US MOVING FORWARD WITH THAT INITIAL APPROACH, WE'D LOVE TO DO THAT BEFORE THE END OF THE CALENDAR YEAR.

SO, AS WE GO INTO BUDGET, AS WE GO INTO THESE QUESTIONS ABOUT HOW TO USE EVERY DOLLAR, WE HAVE A DIFFERENT, A DIFFERENT PERSPECTIVE TO INFORM THOSE QUESTIONS.

I HOPE THAT'S RESPONSIVE TO YOUR QUESTION.

- THANK YOU. AND SO IT SOUNDS LIKE THAT'LL HAPPEN BEFORE THE KIND OF BUDGET CONVERSATIONS.

- THAT IS ABSOLUTELY...

THE INTENTION IS THAT WE REALLY UNDERSTAND.

NOW, I'M NOT SAYING WE'RE GONNA, YOU KNOW, THE HOPE IS FROM THERE, WE START UNDERSTANDING WHAT OUR SOLUTIONS, HOW DO WE COME TOGETHER DIFFERENTLY.

I JUST WANNA STRESS, I MEAN, THE COUNTY, CANNOT SOLVE THIS BY ITSELF.

WE CANNOT AFFORD THE LEVEL OF FINANCIAL GAP WE'RE TALKING ABOUT.

WE ARE GONNA HAVE TO DO THINGS DIFFERENTLY.

I MEAN, VICTORY GARDENS IN PARKS SOUNDS LIKE AN INTERESTING WAY TO COME TOGETHER.

I MEAN, I THINK THAT'S... THOSE ARE THE KINDS OF SMALL THINGS THAT ARE GONNA MAKE A DIFFERENCE AND US STAYING CONNECTED AS A COMMUNITY.

- THANK YOU. THANK YOU FOR THAT OVERVIEW.

AND I JUST WANNA EXPRESS MY STRONG SUPPORT FOR ENGAGING THE COMMUNITY IN CONVERSATION, HOLDING THESE SESSIONS BEFORE WE HAVE TO MAKE

[02:25:02]

THESE BUDGET CONVERSATIONS, SO THAT WAY THE DIALOGUES AND DECISIONS THAT WE MAKE UP HERE ARE INFORMED BY MEMBERS OF OUR PUBLIC.

AND IF IT'S OKAY WITH MEMBERS OF THE BOARD, I'D BE HAPPY TO TAKE THE LEAD ON SUPPORTING YOUR OFFICE ON SETTING THESE UP AND REALLY OFFER ANY SUPPORT IN THE EXECUTION OF THESE TYPE OF COMMUNICATIONS.

I'M HAPPY TO BE A SUPPORT, IF THAT WOULD BE HELPFUL.

- THANK YOU. SUPERVISOR MARTINEZ.

UH, SUPERVISOR KOENIG.

- THANK YOU, CHAIR.

THANK YOU ALL, EVERYONE WHO IS PRESENTED TODAY.

I THINK SUPERVISOR MARTINEZ YOU SUMMED IT UP REALLY WELL WITH THE ANALOGY OF THE IMPENDING TSUNAMI.

AND THIS WAS SORT OF A THAT THIS REPORT REALLY SERVES AS A TSUNAMI WARNING FOR OUR ENTIRE COMMUNITY.

AND ASSISTANT CEO BENSON, AS YOU WERE JUST SAYING THESE IMPACTS REALLY JUST OUTSTRIP WHAT THE COUNTY IS CAPABLE OF.

I MEAN, THE FIRST THING THAT COMES TO MIND, AS WE WERE HEARING ABOUT THE IMPACTS TO OUR FOOD SYSTEM AND THAT'S THE FOOD BANK FOOD BANKS, IS THAT ALRIGHT, WELL, WE BETTER BE SPENDING MORE COUNTY DOLLARS ON FOOD, RIGHT? AS WE LOOK AT OUR CORE BUDGET NEXT YEAR.

BUT OUR CORE BUDGET IS ONLY ABOUT $5 MILLION, AND WE'RE TALKING ABOUT A $16 MILLION HIT TO JUST FOOD SPENDING IN GENERAL IN OUR COMMUNITY.

THEN WE TALK ABOUT HEALTH AND, YOU KNOW, THE COUNTY'S LOOKING AT APPROXIMATELY A $20 MILLION BUDGET DEFICIT BETWEEN UNCOMPENSATED JUST BETWEEN REDUCED REVENUES AT OUR, OUR CLINICS AND THEN HAVING TO PAY MORE, INTO THE MEDICRUZ PROGRAM.

BUT THEN WHEN YOU LOOK AT THE BROADER COMMUNITY, WE'RE TALKING ABOUT A $278 MILLION LOSS, FOR OUR HEALTH SYSTEMS. THAT MEAN, THAT'S AN ORDER OF MAGNITUDE LARGER.

AND SO THIS REALLY IS GOING TO TAKE NEW AND CREATIVE WAYS OF THINKING AND WORKING TOGETHER IN ORDER TO ADDRESS THIS PROBLEM.

THE ONLY WAY THAT WE'RE GOING TO GET THROUGH IT IS HAND IN HAND WORKING TOGETHER, ONE STEP AT A TIME.

I DO HAVE ONE QUESTION.

IT WAS NOT ADDRESSED IN THE PRESENTATION, WHICH IS YOU KNOW, WE'VE HEARD A LITTLE BIT, I, MY, I GUESS I'LL SUMMARIZE MY UNDERSTANDING OF THIS ISSUE WHICH IS THAT I GUESS THE ADMINISTRATION HAS SAID THAT, WE'RE... THAT, THAT FEDERALLY QUALIFIED HEALTH CENTERS SHOULD NO LONGER BE SERVING PEOPLE WITH UNSATISFACTORY IMMIGRATION STATUS.

I BELIEVE THAT'S OF COURSE IN VIOLATION OF THE WAIVER THAT STATES LIKE CALIFORNIA HAVE GOTTEN TO SERVE THAT POPULATION AND THAT THERE'S A COURT INJUNCTION AGAINST THIS ACTION.

BUT THAT SOME COUNTIES LIKE SANTA, WE HEARD FROM SANTA BARBARA HAVE SAID THEY'RE NO LONGER GOING TO SERVE PEOPLE WITH UNSATISFACTORY IMMIGRATION STATUS AT COUNTY CLINICS.

AND DOES THIS, DOES THIS REPRESENT, YOU KNOW, POTENTIALLY IF, IF A COURT ULTIMATELY RULES IN FAVOR OF THE ADMINISTRATION THAT WE COULD BASICALLY END UP WITH YOU KNOW, MULTIMILLION DOLLARS OF UNREIMBURSED CARE? - YES.

I WANNA HAVE AMY, SHE CAN COME UP HERE.

YEAH, WE WERE VERY SHOCKED ACTUALLY WHEN WE SAW THE SANTA BARBARA ACTION.

AND I WAS ASKING AMY OUR FQC DIRECTOR IF SHE HAD SEEN OR OBSERVED OTHER COUNTIES DOING THE SAME.

AND I THINK AS WE, THE LAST TIME WE SPOKE, SHE HAD NOT, BUT SHE'S OUR EXPERT.

GO AHEAD, AMY.

- GOOD MORNING.

I DID SPEAK WITH SANTA BARBARA COUNTY'S ORGANIZED HEALTHCARE, THE EQUIVALENT OF ALLIANCE YESTERDAY.

AND THE PROBLEM THAT FQHCS ARE FACING IS THAT WE ARE REQUIRED BY STATUTE TO SERVE ALL INDIVIDUALS IN OUR CATCHMENT AREA REGARDLESS OF THEIR ABILITY TO PAY THAT IS WRITTEN IN STATUTES.

SO TO DENY SERVICE GOES DIRECTLY AGAINST THE FOUNDATION OF WHY WE'RE HERE.

SO IT IS SOMETHING THAT WE WILL...

AND, AND THERE IS A STAY, THERE IS AN INJUNCTION RIGHT NOW THAT MEANS THAT WE DO NOT HAVE TO ABIDE BY ANY OF THE PRWORA ACT.

SO MUCH WILL, WILL COME IN THE COURTS.

- CAN I ADD TO THAT, SUPERVISOR KOENIG? I, I THINK TO ANSWER PLAINLY YOUR QUESTION, IS THERE POSSIBLE FINANCIAL EXPOSURE FOR THE COST OF SERVICE FOR WHAT WE DO, WHAT WE'VE DONE? YES, THERE IS.

[02:30:01]

I DON'T HAVE A NUMBER.

I MEAN, I WANNA SAY LIKE SEVEN OR EIGHT MONTHS AGO WE STARTED TRYING TO, WHAT WOULD THAT LOOK LIKE? BUT THERE IS, AND SO THAT'S ONE MORE THING THAT'S GONNA BE ON THE BOARD ABOUT, I MEAN, NOT YOUR BOARD, BUT LIKE THE SCOREBOARD THAT WE HAVE TO BE CONSIDERING AS WE NAVIGATE THESE CHANGES, THESE CHANGES AHEAD.

SO I, I DON'T HAVE A NUMBER, BUT THERE IS A NUMBER.

- OKAY. LOOK, LOOK FORWARD TO HEARING THAT ONCE WE CAN PUT IT TOGETHER.

THANK YOU - SUPERVISOR CUMMINGS.

- YEAH, THANK YOU CHAIR.

AND THANK YOU TO EVERYONE WHO'S HERE TODAY TO BE ABLE TO SPEAK ON THIS VERY CHALLENGING AND DIFFICULT ISSUE THAT OUR COMMUNITY IS FACING ALONG WITH MANY OTHER COMMUNITIES.

I ALIGN MYSELF WITH THE COMMENTS THAT HAVE BEEN MADE, AND I'M NOT GONNA BELABOR 'CAUSE WE HAD A TIME CERTAIN ITEM AT 10:45 AND WE'RE ALREADY OVER AND WE HAVE A BUNCH OF OTHER ITEMS ON OUR AGENDA.

I JUST WANNA EXPRESS, I FEEL LIKE COMING OUT OF TODAY, YOU KNOW, IT'S BEEN REALLY HELPFUL BECAUSE THIS IS ANSWERING THE QUESTION OF LIKE WHAT IS HAPPENING AND HOW WE'RE BEING AFFECTED.

AND I, I REALLY HOPE, 'CAUSE I SAW AS PART OF THE DIRECTION THAT WE'RE GONNA SHARE THIS INFORMATION WITH OUR STATE AND FEDERAL REPRESENTATIVES BECAUSE WE REALLY NEED TO FIND OUT WHERE THERE ARE OPPORTUNITIES FOR ALLIANCES TO BE MADE SO THAT WE CAN BEGIN TO SEE HOW WE CAN WORK WITH OTHER COUNTIES THAT MAY HAVE VOTED IN SUPPORT OF THIS ADMINISTRATION TO SEE HOW THEY'RE BEING IMPACTED AND HOW WE CAN COLLECTIVELY WORK TOGETHER TO GET OUR NEEDS ADDRESSED.

I JUST NOTICED AND WAS MADE AWARE THAT THERE'S, YOU KNOW TWO COUNTIES IN CALIFORNIA, THEY'RE GONNA LOSE THEIR RURAL HOSPITAL, TWO RURAL COUNTIES THAT ARE GONNA LOSE THEIR HOSPITALS, POTENTIALLY DUE TO SOME OF THE CHANGES AT THE FEDERAL LEVEL.

I THINK OUR COMMUNITY, WE'RE REALLY WORRIED ABOUT, YOU KNOW, POTENTIALLY LOSING OUR HOSPITALS.

AND I THINK THAT THAT'S SOMETHING THAT, YOU KNOW, ACROSS RURAL COMMUNITIES THROUGHOUT THE COUNTRY IS A CONCERN THAT WE CAN ALL KIND OF, YOU KNOW, JOIN TOGETHER AROUND.

I MEAN, IT REMINDS ME OF HOW RECENTLY THIS YEAR, I'M TRYING TO FIND, THERE WAS THE FIXING EMERGENCY MANAGEMENT FOR AMERICA'S ACT THAT GOT BIPARTISAN SUPPORT TO TRY TO SUPPORT FEMA EFFORTS AND TO REFORM FEMA.

AND SO I THINK THAT AS WE'RE LEARNING MORE ABOUT HOW WE'RE BEING IMPACTED, IT'S GONNA GIVE US AN OPPORTUNITY TO REALLY, YOU KNOW, I THINK FOR US AS COUNTY SUPERVISORS, SINCE WE GO TO CALIFORNIA STATE ASSOCIATION OF COUNTIES MEETINGS AMMAN IS OUR REPRESENTATIVE PROVIDING, YOU KNOW, US WITH THIS INFORMATION SO THAT WE CAN CARRY THIS FORWARD.

AND AS WE'RE HAVING CONVERSATIONS WITH SOME OF OUR REPUBLICAN MEMBERS OF, OF COUNTIES THAT WE'RE ABLE TO SHARE OUR STORIES AND SEE HOW WE CAN WORK TOGETHER.

I THINK AT THE NATIONAL ASSOCIATION OF COUNTIES, IT'S ANOTHER OPPORTUNITY FOR US TO MEET WITH FOLKS FROM OTHER COUNTIES ACROSS THE COUNTRY, UNDERSTAND HOW THEY'RE BEING IMPACTED AND WHAT ARE THE OPPORTUNITIES FOR US TO WORK TOGETHER.

BUT THEN I, YOU KNOW, I KNOW FOR MANY FOLKS HERE, WHETHER IT'S, YOU KNOW, OUR AG COMMISSIONER OR FOLKS WHO WORK IN AG OR IF IT'S FOLKS WHO WORK IN HEALTH, WE ALL GO TO DIFFERENT CONFERENCES AND TRY TO, YOU KNOW THINK CREATIVELY WITH OUR PARTNERS ON, YOU KNOW, HOW WE'RE BEING IMPACTED, WHAT CAN WE DO? AND I THINK IT'S REALLY COME TO THIS, YOU KNOW, NEXT STEP OF, OF WHAT WE CAN DO TOGETHER AND HOW CAN WE BUILD BRIDGES TO TRY TO MAKE SURE THAT WE'RE ABLE TO ADDRESS THESE ISSUES THAT ARE IMPACTING ALL OF US REGARDLESS OF WHAT PARTY YOU, YOU VOTE FOR.

I DO THINK THAT ONE OF A NEXT STEP WE SHOULD BE THINKING ABOUT IS LIKE, WHAT CAN PEOPLE DO IN THE COMMUNITY TO HELP? I HEAR FROM FOLKS ALL THE TIME, I GET EMAILS FROM PEOPLE WHO ARE RETIRED OR THEY'RE JUST, YOU KNOW, TRYING TO, TO FIGURE OUT WHAT ROLE THEY CAN PLAY IN HELPING TO SUPPORT OUR COMMUNITY DURING THIS TIME.

AND SO THE MORE THAT WE CAN CREATIVELY THINK ABOUT, HOW OTHER FOLKS CAN GET INVOLVED I THINK IT'S GONNA BE REALLY HELPFUL FOR PEOPLE IN THE COMMUNITY TO REALLY BE THERE TO SUPPORT FOLKS WHO ARE BEING IMPACTED.

AND YOU KNOW, I THINK AT THE END OF THE DAY AS WE'RE MOVING INTO THE NEXT BUDGET CYCLE, WE REALLY NEED TO FIGURE OUT HOW PEOPLE'S BASIC NEEDS CAN BE MET.

I KNOW WE WANT TO FUND, YOU KNOW, ALL SORTS OF DIFFERENT PROGRAMS IN THE COMMUNITY, BUT YOU KNOW, IT REALLY COMES DOWN TO, AS THESE CUTS ARE HAPPENING, BEING ABLE TO TELL THIS STORY OF HOW WE'RE BEING IMPACTED AND AS WE'RE ROLLING BACK FUNDING BE ABLE TO GET PEOPLE TO UNDERSTAND LIKE, THIS ISN'T SOMETHING WE WANT TO DO, IT'S SOMETHING WE HAVE TO DO.

AND OUR NUMBER ONE GOAL IS TO MAKE SURE THAT PEOPLE'S BASIC NEEDS ARE MET.

AND SO I LOOK FORWARD TO TRYING TO WORK THROUGH THIS AS WE'RE MOVING TOWARDS, YOU KNOW OUR BUDGET FOR NEXT YEAR AND THE MID-YEAR BUDGET.

BUT MOST IMPORTANTLY SEE OURSELVES AS TAKING THIS INFORMATION AND BEING THE BEST ADVOCATES THAT WE CAN, SO THAT WE CAN TRY TO, YOU KNOW, HOPEFULLY PUSH BACK AGAINST THE NEGATIVE CHANGES THAT ARE HAPPENING AT OUR FEDERAL LEVEL THANK YOU.

- THANK YOU, SUPERVISOR DE SERPA.

- THANK YOU. WELL, MY COLLEAGUES HAVE ELOQUENTLY, TALKED ABOUT WHERE WE FIND OURSELVES AND, AND WHAT TO DO NEXT.

I GUESS WHEN CONFRONTED WITH BUDGETARY CONSIDERATIONS, THIS GRAVE, I, I'M JUST WONDERING WHY WE AREN'T TAKING SOME STEPS NOW TO REIGN IN OUR BUDGET.

[02:35:02]

IS THERE A REASON THAT WE'RE WAITING? LIKE I WAS EXPECTING SOME RECOMMENDATIONS TODAY ABOUT FREEZING TRAVEL, FREEZING HIRING, YOU KNOW, JUST SOME VERY SPECIFIC THINGS THAT WE CAN START DOING WITH LOW HANGING FRUIT TO PREPARE FOR WHAT WE KNOW IS INEVITABLY COMING OUR WAY.

- I'LL GO AHEAD AND ANSWER THAT.

- I THINK THAT YEAH, THE BOARD IS GONNA HAVE TO, I WOULD RECOMMEND IN THE MID-YEAR THAT YOU START REALLY LOOKING AT BUDGET PRIORITIES.

THERE REALLY IS NO LOW-HANGING FRUIT.

THAT'S ONE OF THE, THE VERY DIFFICULT LESSONS.

IF WE'RE GONNA, IF WHAT ANYTHING WE DO IS GONNA MEAN BUDGET CUTS IN ANOTHER PROGRAM, AND THEY'RE ALL IMPORTANT PROGRAMS THAT WE DO IN THE COUNTY.

WE DO SUCH A WIDE ARRAY OF SERVICES AND THEY'RE ALL VERY IMPORTANT SERVICES.

SO, I DON'T THINK THERE'S ANY EASY ANSWERS AT THIS POINT.

AND I THINK THE BOARD NEEDS TO LOOK AT ALL OF OUR SPENDING IN THE MIDYEAR AND START PRIORITIZING AND ALSO LOOK AT REVENUE OPTIONS AS WELL AND TRYING TO FIGURE OUT ARE THERE ANY POSSIBILITIES THERE BECAUSE I THINK THAT IT IS GOING TO BE VERY DIFFICULT SITUATION AND THOSE DECISIONS ARE VERY DIFFICULT.

JUST TO GIVE YOU AN EXAMPLE OF WHAT WE DID IN THE PAST, SO LET'S LOOK AT THE GREAT RECESSION.

AND THE GREAT RECESSION, THE COUNTY ELIMINATED OVER 400 POSITIONS, INCLUDING 200 LAYOFFS.

THE COUNTY ELIMINATED THE PARKS AND COMMUNITY SERVICES DEPARTMENT.

THE COUNTY IMPLEMENTED FURLOUGHS FOR ALL EMPLOYEES.

THAT LASTED ALMOST FOUR YEARS.

VERY DIFFICULT.

DURING COVID, WE DEVELOPED, WE WENT INTO OUR RESERVES FOR $14 MILLION.

WE LAID OFF PROBABLY ABOUT 60 POSITIONS, AND WE HAD FURLOUGHS THAT LASTED A FEW YEARS.

AND THEN WE WERE, THE AMERICAN RESCUE PLAN BASICALLY RESCUED US.

AND SO WE WERE ABLE TO REINSTATE OUR FURLOUGHS AND BE, WE WERE ABLE TO ALSO GET RID OF THE FURLOUGHS.

SO, SO ANYWAY, THOSE ARE THE KIND OF DIFFICULT DECISIONS THAT, YOU KNOW, YOU MAY BE FACED WITH.

AND SO I THINK YOU SHOULD START ENGAGING THOSE DISCUSSIONS AS WE GET TOWARDS THE NEW YEAR AND THE BOARD AND YOUR STAFF GETS DIRECTION FOR THE DEVELOPMENT OF THE COMING FISCAL YEAR'S BUDGET.

- THANK YOU. THANK YOU VERY MUCH FOR ADDRESSING THAT.

I THINK THERE'S GONNA BE SOME HARD DECISIONS AHEAD OF US.

SUPERVISOR KOENIG ASKED THE EXACT QUESTION THAT I HAD ABOUT FQHCS BECAUSE THAT WOULDN'T JUST AFFECT OUR COUNTY, IT AFFECTS ALL OF THE SAFETY NET CLINICS.

AND SO IF NONE OF US CAN SERVE PEOPLE WITH UNSATISFACTORY IMMIGRATION STATUS, WHAT WOULD HAPPEN TO THOSE PATIENTS? BECAUSE IN SANTA BARBARA COUNTY, THEY'RE, IT SOUNDS LIKE THEY'RE TRYING TO REASSIGN, BUT REASSIGN TO WHERE, 'CAUSE WE HAVE DIGNITY KAISER, PAMF.

PAMF DOESN'T TAKE MEDI-CAL PATIENTS.

KAISER'S NOT TAKING ANY MEDI-CAL PATIENTS.

SO THAT LEAVES DIGNITY, AND THEY DON'T HAVE ENOUGH DOCTORS, RIGHT? SO...

- SO IT IS A QUESTION.

YOU'RE ASKING ME A QUESTION RIGHT NOW.

I DON'T KNOW IF YOU'RE MAKING A COMMENT.

- WELL, YEAH, I JUST DON'T KNOW IF WE HAVE ANY OTHER GOOD IDEAS.

THE ONE THING I, I, YOU KNOW, I WILL SAY THIS.

THERE IS ANOTHER MODEL, AND THAT'S THE ROTACARE CLINIC.

FOR YEARS, THE ROTARY HAS BEEN SUPPORTING A CLINIC, A FREE CLINIC HAPPENS EVERY TUESDAY.

DR. SATISH CHANDRA, WHO IS A DIGNITY DOCTOR, WHO IS MOSTLY RETIRED.

I THINK HE'S WORKING ONE DAY A WEEK NOW.

BUT HE HAS BEEN STAFFING THAT CLINIC EVERY TUESDAY FOR YEARS.

AND SO THERE'S SOME ANCILLARY SERVICES.

I'VE VOLUNTEERED THERE MULTIPLE TIMES.

THAT'S FREE HEALTHCARE, YOU KNOW, AND WITH THE NUNS AT DIGNITY, IF SOMEBODY NEEDED FOLLOW UP SPECIALTY CARE, WE WOULD ARRANGE IT AND THAT PERSON WOULD GET WHAT THEY NEEDED FOR FREE.

SO THAT'S SOMETHING I THINK WE SHOULD BEGIN TO LOOK AT POTENTIALLY EXPANDING THAT SERVICE TOO. - SO.

SO SUPERVISOR DE SERPA, WE DID MEET WE ARE LOOKING AT THAT DATA, AND YOU'LL HEAR A LITTLE BIT, A LITTLE LATER IN MEDICRUZ PRESENTATION AS WELL.

BUT WE DID START LOOKING AT THE NUMBER OF FOLKS THAT WE HAVE IN THAT CASELOAD AND SEE WHERE, WHAT ARE SOME OF THE UNDERLYING CONDITIONS THAT WE COULD POSSIBLY LOOK AT OTHER PARTS OF OUR AGENCY BUT ALSO OUR PARTNERS.

SO WE STARTED TO LOOK AT THE DATA AND START TO DO SOME ANALYSIS.

SO WE DEFINITELY CAN PUT SOMETHING TOGETHER AND SHARE AN UPDATE FOR YOU.

BUT, WE, WE HAVE STARTED TO WORK ON IT ALREADY.

AND I KNOW, LIKE ALL OF US HAVE BEEN LOOKING TO THE STATE BECAUSE THEY KNOW WHAT THIS IS ALL HAPPENING, AND THEY'VE BEEN MOSTLY, YOU KNOW, SILENT ON WHAT THE FIX IS.

DO WE KNOW ANYTHING FURTHER FROM OUR STATE ABOUT ANY HELP THAT THE COUNTIES WILL BE GETTING? - I KNOW JESSICA, LET'S SEE.

[02:40:01]

JENNIFER'S RIGHT HERE.

SO I KNOW [INAUDIBLE] OUR STATE ASSOCIATION IS LOOKING INTO THIS I'LL HAVE HER SPEAK TO THAT ISSUE, WHICH SHE'LL BE ON, ON HER WAY TO THAT MEETING AS WELL.

- HELLO EVERYONE.

JEN HERRERA, ASSISTANT DIRECTOR FOR HSA.

WE, IF, IF YOU COULD JUST PLEASE REPEAT YOUR QUESTION SUPERVISOR DE SERPA.

- THE STATE KNOWS THAT WE'RE, THAT THIS IS A CRISIS.

SO I'M JUST WONDERING IF THEY HAVE BEEN PREPARING, PROPOSING ANY HELP FOR THE COUNTIES WITH REGARD TO THESE FEDERAL CUTS.

- SO AS YOU'RE, AS YOU'VE HEARD, THE CUTS ARE PRETTY WIDESPREAD.

SO WHEN IT COMES TO MEDICAID, WE'RE STILL WAITING TO HEAR WHAT THAT WILL LOOK LIKE, WHAT THE DIRECTION WILL BE TO MEDI-CAL, WHICH WILL IMPACT OUR OPERATIONS.

I WILL SHARE THAT ONE OF THE ACTUAL REDUCTIONS THAT HAPPEN ACTUALLY EFFECTIVE TOMORROW IS THE REDUCTION OF SNAP EDUCATION.

SO THAT'S RELATED TO HR1.

SO WE DID RECEIVE SUPPORT FROM THE STATE WITH SOME TRANSITIONAL FUNDING, TO SUPPORT ALL PROGRAMS THROUGHOUT THE STATE WITH RAMPING DOWN THAT PROGRAM SO THAT THERE ISN'T AN ABRUPT STOP AS OF OCTOBER 1.

SO THAT IS ONE BENEFIT...

THAT'S... THAT SHOWS ONE BENEFIT OF THE PARTNERSHIP OF BEING A PASS THROUGH TO THE STATE, IS THAT THE STATE IS ACTING AS A BUFFER FOR US AND AN ADVOCATE FOR US, ESPECIALLY ON SOME OF OUR, A LOT OF OUR PUBLIC HEALTH PROGRAMS, THAT ARE CERTAINLY AT, AT RISK.

AND THE, THE ONE THAT IS MENTIONED IN HR1 IS SNAP ED, BUT THERE ARE CERTAINLY A VARIETY OF PUBLIC HEALTH PROGRAMMING AT RISK THAT THE STATE IS ADVOCATING ON OUR BEHALF.

SAME WITH THAT RELATES TO THE CALAIM, 1115 WAIVERS AND BH CONNECT WAIVERS.

- SUPERVISOR DE SERPA, I JUST WANT TO PUT AN ELEPHANT ON THE TABLE.

AS PUBLIC COUNTY STAFF, WE MEET WITH STATE STAFF AND WE HAVE A STATE ASSOCIATION, AND THIS IS THE ELEPHANT.

SO, OKAY, I'M GONNA SAY THIS.

THE STATE GOVERNMENT IS USED TO WORKING WITH A SOMEWHAT STABLE AND PREDICTABLE FEDERAL GOVERNMENT.

THE FEDERAL GOVERNMENT DISMANTLED THE REGION SYSTEM AND DISMANTLED REGION NINE.

AND DOGE BASICALLY ELIMINATED A LOT OF PUBLIC SERVANTS WITH LOTS OF SUBJECT MATTER EXPERIENCE, REPLACED THEM WITH LOYALISTS.

AND SO, AGAIN, I DON'T WANNA SPEAK FOR THE STATE, BUT FROM WHAT I HEAR FROM THE STATE, THEIR NORMAL MODE OF COMMUNICATING AS SUBJECT MATTER EXPERTS AT THE STATE WITH FEDERAL SUBJECT MATTER EXPERTS HAS ALL BEEN DECIMATED.

SO MOST OF WHAT WE DO, I'LL SPEAK FOR HUMAN SERVICES, THIS MIGHT BE RELEVANT FOR HEALTH AS WELL.

ACTIONS OCCUR AT THE FEDERAL LEVEL.

THE STATE WORKS WITH THE FEDERAL GOVERNMENT TO SORT OF PROMULGATE THOSE RULES AND THEN THEY COMMUNICATE WITH US.

THE STATE IS STUCK IN THE MIDDLE WITH THIS DISRUPTIVE FEDERAL ACTIVITY AND REALLY WITH A LOSS OF SUBJECT MATTER EXPERTISE.

AND SO WHEN I GO TO MY STATE MEETINGS, WE SAY, WELL, WHAT'S THE NEXT STEP? WE ARE WAITING FOR GUIDANCE FROM THE FEDERAL GOVERNMENT.

SO I JUST THINK THAT'S THE CONTEXT IN WHAT'S HAPPENING.

AND IF THE PURPOSE OF THIS MEETING, IN PART, IS TO FIGURE OUT HOW WE AS STAFF, COUNTY COMMUNITY PARTNERS, WORK TOGETHER.

AND THEN HOW DO WE WORK WITH YOU? I HOPE WE CAN QUEUE UP THINGS SO THAT YOU CAN TALK TO STATE ELECTEDS AND FEDERAL DELEGATES, AND WE CAN TALK STAFF TO STAFF BECAUSE THIS IS THE MOMENT WE'RE IN.

WHERE THE PREDICTABILITY OF THE FEDERAL GOVERNMENT'S GONE AND THERE'S NOT MUCH OF IT THERE, THERE TO GIVE MUCH OF A ANSWER SO THAT'S KIND OF WHAT'S HAPPENING SYSTEMICALLY AND IT'S BRAND NEW.

SO WE ARE USED TO GETTING PRETTY QUICK, CLEAR DIRECTION FROM THE STATE AFTER THEY GET IT FROM THE FEDS.

THAT IS ALL CHANGED.

I THINK THAT CONCLUDES MY QUESTIONS.

- THANK YOU. I WANNA THANK ALL MY, MY COLLEAGUES MEANINGFUL AND THOUGHTFUL WORDS TODAY.

AS WE PROCEED I JUST WANT TO ENSURE THAT WE USE THE LENS OF EQUITY, AS RESOURCES ARE ALLOCATED BASED ON HIGHER IMPACT OF CUTS IN THE JURISDICTIONS AFFECTED.

THE MAGNITUDE OF THESE PROPOSED CUTS IS SIGNIFICANT.

TENS OF THOUSANDS OF RESIDENTS IN OUR COUNTY RELY ON MEDI-CAL, CALFRESH, MEDICRUZ, AND ANY REDUCTION WILL BE ESPECIALLY DIFFICULT FOR THE MOST VULNERABLE.

OUR NEIGHBORS, FAMILIES WITH LOW INCOMES, SENIORS, FARM WORKERS, STUDENTS IN IMMIGRANT COMMUNITIES.

WE ALL KNOW THE IMPACT WILL NOT BE EVENLY DISTRIBUTED IN PLACES LIKE WATSONVILLE, WHERE A LARGER SHARE OF RESIDENTS DEPEND ON THESE PROGRAMS, THE EFFECTS WILL BE MORE IMMEDIATE, DRASTIC, AND MORE PROFOUND.

AS WE CONSIDER HOW TO RESPOND.

AGAIN, I WANT TO ENCOURAGE US TO KEEP AN EQUITY LENS AT THE FOREFRONT.

OUR ALLOCATION OF RESOURCES AND STRATEGIES FOR MITIGATION SHOULD REFLECT NOT ONLY POPULATION,

[02:45:01]

BUT ALSO THE HIGHER CONCENTRATION OF NEED IN THOSE AREAS MOST AFFECTED.

AND WHILE THESE CHALLENGES ARE DAUNTING, I BELIEVE THAT WE CAN BEST ADDRESS THEM TOGETHER THROUGH COLLABORATION BETWEEN COUNTIES, OUR CITIES, OUR COMMUNITY PARTNERS.

WORKING IN PARTNERSHIP WILL GIVE US THE STRONGEST PATH FORWARD TO PROTECT THE WELL-BEING OF ALL OF OUR RESIDENTS.

AND AS A QUESTION, NOT, IT'S NOT A LITERAL QUESTION, BUT IT'S SOMETHING FOR US TO THINK OF.

I WANNA MAKE SURE THAT SAFEGUARDS ARE PROPOSED TO PREVENT THE RESIDENTS IN MOST NEED FROM LOSING ACCESS TO HEALTHCARE, PREVENTATIVE SERVICES, FOOD ACCESS DUE TO THESE CUTS.

THAT'S SOMETHING FOR DISCUSSION FOR ALL OF US AMONGST OUR COMMUNITY, OUR CONSTITUENTS, AND OUR COMMUNITY PARTNERS AND COUNTY STAFF TO CONSIDER.

WITH THAT, I'LL BRING IT BACK TO THE BOARD.

SUPERVISOR MARTINEZ.

I WANT TO, ONCE AGAIN, THANK YOU FOR THE PRESENTATION.

I KNOW, WE'LL, I KNOW WE'LL BE CONTINUING THIS CONVERSATION ON UPCOMING AGENDA ITEMS TODAY.

BUT I DO WANT TO EXTEND ONE MORE JUST WORD OF GRATITUDE TO THE PRESENTERS TODAY.

AND LET YOU KNOW THAT WE UP HERE UNDERSTAND HOW DIFFICULT THE ROAD AHEAD IS FOR EACH OF YOU AND THAT WE ARE WITH YOU AND SUPPORT YOU AS WE COLLECTIVELY WORK TO ADDRESS THIS THESE CHALLENGES.

SO WITH THAT, I MOVE THE RECOMMENDED ACTIONS.

- WE HAVE A MOTION FROM SUPERVISOR MARTINEZ AND A SECOND FROM SUPERVISOR KOENIG.

IF WE CAN TAKE A ROLL CALL VOTE.

AND MOTION PASSES UNANIMOUSLY.

AND HERNANDEZ. - AYE.

WE DO HAVE SCHEDULED ITEM FOR 10:45.

WE ARE GONNA SKIP 7.1, SO THAT WE CAN MOVE ON TO THE NEXT AGENDA ITEM.

NUMBER 11, THE BOARD OF SUPERVISORS SHALL RECESS.

[11. The Board of Supervisors shall recess in order to permit the Board of Directors of the Santa Cruz County Flood Control and Water Conservation District – Zone 5 to convene and carry out a regularly scheduled meeting]

WELL, WE WON'T RECESS WE'LL CONTINUE.

TO PREVENT THE BOARD OF DIRECTORS OF THE SANTA CRUZ COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 5 TO CONVENE AND CARRY OUT REGULARLY SCHEDULED MEETINGS.

I WILL TURN IT OVER TO SUPERVISOR KOENIG, CHAIR OF THE ZONE 5 MEETING.

- THANK YOU. I WILL CALL TO ORDER THE REGULAR MEETING OF THE ZONE 5 FLOOD CONTROL AND WATER CONSERVATION DISTRICT.

AND CLERK, IF WE, ONCE WE HAVE A MOMENT FOR...

YEAH, PLEASE BOARD MEMBERS, DIRECTORS OF THE FLOOD CONTROL DISTRICT, PLEASE TAKE A SEAT.

THANK YOU FOR WAITING PATIENTLY.

I KNOW WE ARE AN HOUR BEHIND SCHEDULE.

WE APPRECIATE YOU BEING HERE.

I THINK EVERYONE IS SEATED NOW.

SO, CLERK, COULD YOU PLEASE CALL THE ROLE? - CERTAINLY.

DIRECTOR DE SERPA. - PRESENT - CUMMINGS? - HERE.

- HERNANDEZ - MARTINEZ? - HERE.

- BALBONI? - HERE.

- CLARK? - HERE.

- HERNANDEZ? - YES.

- AND KOENIG? - HERE.

ARE THERE ANY ADDITIONS OR DELETIONS TO THE CONSENT AGENDA TODAY? - NO ADDITIONS OR CORRECTIONS? - ALRIGHT. DO WE HAVE ANY ORAL COMMUNICATIONS FOR THE ZONE 5 FLOOD CONTROL DISTRICT? - WE DO NOT.

- I BELIEVE WE HAVE SOMEONE HERE IN THE AUDIENCE.

YES. THANK YOU. GO AHEAD.

- SNUCK UP ON YOU.

MY NAME IS BECKY STEINBRUNER.

I WANT TO ENCOURAGE THIS BOARD TO SUPPORT CONSERVATION.

I WANT TO ENCOURAGE THIS BOARD TO SUPPORT MANAGED AQUIFER RECHARGE PROJECTS THAT WOULD TAKE STORM WATER AND APPLY THEM TO COLLECTED AREAS FOR GROUNDWATER RECHARGE.

THOSE AREAS HAVE BEEN CLEARLY IDENTIFIED IN DR. ANDY FISHER'S WORK AND THE RECHARGE INITIATIVE FOR THE BEST AREAS IN THE COUNTY WHERE THE SOILS WILL ACCOMMODATE RECHARGE.

PLEASE SUPPORT PROJECTS LIKE THIS.

IS THERE ANYONE ELSE HERE IN CHAMBERS THAT WISHES TO ADDRESS THE ZONE 5 BOARD? DO WE HAVE ANYONE ONLINE? - YES. CHAIR. ONE MOMENT.

CALL IN USER THREE, YOUR MICROPHONE'S NOW AVAILABLE.

- SET UP BOARD ONE.

- HI, THIS IS MARILYN GARRETT, AND SINCE YOU'RE DEALING WITH WATER AND FLOOD ISSUES,

[02:50:03]

I'D LIKE TO INCLUDE THE IMPACT ON WATER SOURCES WITH THE BATTERY STORAGE FACILITIES.

AND I'D LIKE TO HAVE YOU HAVE A COPY OF THE LETTER FROM CENTRAL WATER DISTRICT REGARDING THE PROPOSED ENERGY STORAGE FACILITIES WITHIN THE CENTRAL WATER DISTRICT, THAT'S MY DISTRICT, SPHERE OF INFLUENCE AND THE LETTER FROM THEIR ATTORNEY STATES THE PROPOSED PROJECT PRESENTS AN UNACCEPTABLE RISK TO THE HEALTH AND SAFETY OF OUR CUSTOMERS AND COMMUNITY.

THIS LETTER SERVES AS AN OFFICIAL PROTEST AGAINST THE PROJECT.

THE DISTRICT RESPECTFULLY REQUESTS THAT THE COUNTY BOARD OF SUPERVISORS REJECT THE PROPOSED PROJECT LOCATION.

AND FURTHER, AS YOU EVALUATE OTHER PROPOSED BESS PROJECTS WITHIN THE COUNTY AND WITH THE DISTRICT'S SPHERE OF INFLUENCE THE DISTRICT REQUESTS THE COUNTY CAREFULLY LOOK INTO THE CEQA ISSUES.

I WOULD LIKE YOU TO JOIN WITH CENTRAL WATER DISTRICT IN REJECTING THESE PROPOSED SITES AS UNACCEPTABLE RISK TO THE HEALTH SAFETY OF CUSTOMERS IN THE COMMUNITY.

ALL THE WATER WILL BE ADDITIONALLY POLLUTED AS IT HAS BEEN FROM THE MOSS LANDING FIRE.

SO I URGE YOU TO JOIN IN REJECTING ANY PROPOSED SITES.

DO YOU HAVE ANY OTHER SPEAKERS ONLINE? - WE HAVE NO FURTHER SPEAKERS ONLINE CHAIR.

- RIGHT. THEN I'LL RETURN IT TO THE BOARD.

ARE THERE ANY COMMENTS OR QUESTIONS ON THE CONSENT AGENDA? ALL RIGHT. SEEING NONE IS THERE A MOTION ON THE CONSENT AGENDA? - I MOVE CONSENT.

- SECOND.

- ALRIGHT, MOTION BY DIRECTOR CUMMINGS.

SECOND BY DIRECTOR DE SERPA.

ROLL CALL VOTE, PLEASE.

THAT CONCLUDES OUR ZONE 5 AGENDA.

THANK YOU EVERYONE FOR COMING AND I'LL TURN IT BACK OVER TO CHAIR HERNANDEZ AND THE BOARD OF SUPERVISORS.

- THANK YOU. WE'LL NOW MOVE BACK TO THE REGULAR AGENDA.

WE HAVE ITEM 7.1, WHICH IS ITEM 24.

SUPERVISOR MARTINEZ.

- YES. THANK YOU. CHAIR.

I PULLED ITEM NUMBER 24, WHICH WAS A SUPPLEMENTAL REPORT ON THE BUDGET THAT WE APPROVED BACK IN JUNE.

REALLY, SO THAT WAY IT COULD BE CONSIDERED IN THE CONTEXT OF ALL OF THE CONVERSATIONS THAT WE JUST HAD.

TO BE HONEST, AS A NEW SUPERVISOR, THIS IS MY FIRST TIME THAT I'M GOING THROUGH THIS PART OF THE PROCESS WHERE, YOU KNOW WE GO THROUGH THE BUDGET HEARINGS IN JUNE, AND THEN IT COMES BEFORE THE BOARD NOW IN SEPTEMBER.

AND, AND I WANNA RECOGNIZE THAT A LOT HAS HAPPENED AND CHANGED SINCE THEN.

SO I WANTED TO USE THIS AS AN OPPORTUNITY TO MAKE SURE THAT THE BUDGET THAT WAS PASSED IN JUNE IS STILL RELEVANT AND PROVIDE MYSELF AND OTHER BOARD MEMBERS THE OPPORTUNITY TO ASK QUESTIONS TO THAT.

I HEARD SOME OF THOSE QUESTIONS FROM SUPERVISOR DE SERPA EARLIER AS TO, YOU KNOW, WHY ARE WE NOT HEARING ABOUT BUDGET CHANGES YET? I KNOW MR. MORRIS ALSO ADDRESSED THIS SLIGHTLY IN HIS PRESENTATION ABOUT SOME OF THE CONSIDERATIONS MOVING FORWARD.

I THINK, YOU KNOW, ONE OF MY FIRST QUESTIONS IS THAT WE PASSED THIS BUDGET ON JUNE 10TH, AND THAT MEANT THERE WAS REALLY LITTLE OR NO TIME TO INCORPORATE CHANGES FROM THE GOVERNOR'S MAY REVISE.

AND I'M WONDERING IF THERE THAT HAS HAD ANY EFFECT ON THE CURRENT YEAR'S FISCAL BUDGET CURRENT FISCAL YEAR'S BUDGET.

AND IF ANYTHING RELATED TO THE STATE BUDGET, AS IT IS SOMETHING THAT WE SHOULD CONSIDER HERE AND NOW.

- THANK, THANK YOU FOR YOUR QUESTION.

AS YOU MIGHT RECALL, WE HELD A SPECIAL HEARING ON THE MAY REVISE IN THE STATE ACTIONS ON MAY 20TH, AND THAT HELPED ACTUALLY INFORM THE LAST STATE BUDGET HEARINGS ON JUNE 10TH.

AND AT THE TIME, WE STILL ANTICIPATE THAT THERE'S NO DIRECT IMMEDIATE FISCAL IMPACT TO OUR CURRENT '25/'26 BUDGET.

HR1 HAS A MORE SIGNIFICANT IMPACT FROM SIZE, BUT IT'S ALSO, AS YOU HEARD, SOME OF THOSE SIGNIFICANT MEASURES ARE DELAYED.

PROBABLY MORE IMPACTING THE '26/'27 YEAR DISCUSSIONS

[02:55:02]

THAT WE'LL START WITH OUR ANNUAL MIDYEAR REVIEW.

THAT WOULD HAPPEN IN FEBRUARY.

AS YOU HEARD, WE MIGHT BE HAVING WOULDN'T BE SURPRISED TO HAVE SOME PRELIMINARY CONVERSATIONS AS ACAO, LISA MENTIONED, AS WE LEARN MORE ABOUT THE IMPACTS OF HR1.

WHAT I WILL JUST REMIND FROM A PROACTIVE STANDPOINT, JUNE 10TH, WE CONCLUDED THE HEARINGS.

TODAY'S ACTIONS THIS PARTICULAR AGENDA, ITEM NUMBER 24 THAT IS NOW 7.1, IS REALLY AN, IT'S AN ACCEPT AND FILE REPORT ON HOW THE YEAR CLOSED, ON HOW THE CONCLUDING ACTIONS.

AND IT'S THE PRESENTATION OF THE FORMAT OF THIS BUDGET.

ELSEWHERE ON TODAY'S AGENDA THAT YOU APPROVED AND CONSENT IS THE STRUCTURE OF THE BUDGET THAT WE SUBMIT TO THE STATE CONTROLLER'S OFFICE.

SO TODAY'S ACTIONS ARE NOT NECESSARILY A BUDGET HEARING PER SE, AS MUCH AS THEY ARE JUST A, A REPORT ABOUT HOW THE YEAR FINISHED.

AND WHAT I WANNA MENTION IN THAT REPORT SUMMARIZING IN MY OPINION, WE ACTED IN A WAY THAT WAS VERY PROACTIVE.

AND I'M PROUD OF THE WAY THIS PARTICULAR AGENCY IN THIS COUNTY CONCLUDED OUR YEAR.

WE WENT IN AND WE MADE HARD DECISIONS ABOUT HEALTH SERVICES, ELIMINATING OVER 70 POSITIONS IN TODAY'S ACTIONS THAT INCLUDED THE ADOPTED BUDGET.

BASED ON HOW THE YEAR FINISHED.

WE ADAPTED QUICKLY AND, AND REVISED OUR PROJECTIONS DOWNWARD ON THE SALARY SAVINGS ASSUMPTION, WHICH IS A BIG DEAL.

IT MEANS WE'VE TIGHT REALLY TIGHTENED NEXT YEAR'S BUDGET OR THIS YEAR'S BUDGET TO A LEVEL THAT DOESN'T HAVE THAT FINANCIAL FLEXIBILITY THAT WE HOPED IT MIGHT, BUT WE DID THAT PROACTIVELY.

SO WE'LL BE CLEAR AND TRANSPARENT.

IN THE ACTIONS TODAY, SOME OF OUR RESERVES, WE'VE MOVED THEM FROM DEPARTMENTAL ASSIGNMENTS INTO BOARD CONTROL RESERVED IN PARTICULAR, INCREASING OUR ECONOMIC UNCERTAINTY AND OUR NATURAL DISASTER RESERVES BECAUSE WE HAVE SEVERE EXPOSURES THERE.

SO THESE ARE OUR PROACTIVE ACTIONS THAT THIS BOARD HAS HISTORICALLY TAKEN THAT THIS BOARD DIRECTED US TO DO IN THE JUNE 10TH ACTION.

SO I'M, I'M REALLY PROUD OF WHAT WE'RE DOING ALREADY TO RIGHTSIZE THE '25/'26 BUDGET.

AND I KNOW WE'RE NOT WAITING TO SEE WHAT HAPPENS TO US.

WE'RE PROACTIVELY MEETING WEEKLY TO UNDERSTAND ALL THESE IMPACTS AND TO PRESENT TO THIS BOARD OUR PROACTIVE MEASURES AND ACTIONS AHEAD OF TIME, AS WELL AS CEO PALACIOS HAS MENTIONED OTHER THINGS WE MIGHT BE CONSIDERING REVENUE PARTNERSHIPS AND MODELING WHAT OTHER AGENCIES ARE DOING.

WE'RE LEARNING FROM THE BEST.

- THANK YOU FOR THAT.

BASED ON THE GOOD WORK THAT YOU DID IN PREPARING THE BUDGET FOR THE CURRENT FISCAL YEAR, DO YOU ANTICIPATE ANY SIGNIFICANT MID-YEAR ADJUSTMENTS YET? AND, AND IF SO, WHEN WOULD WE START TO TALK ABOUT THAT? IS THAT DECEMBER OR IS THAT IN FEBRUARY? - FEBRUARY IS HISTORICALLY OUR FIRST TIME WHERE WE'RE DOING WE'VE CLOSED OUT THE FIRST SIX MONTHS OF THE YEAR AND WE KNOW HOW THIS LAST YEAR WILL FINISH.

WELL, THE AUDIT WILL HAVE BEEN COMPLETED.

SO THOSE ARE TWO IMPORTANT DATA SETS.

THE FINAL AUDIT OF THE, THE '24/'25 YEAR, THE FIRST SIX MONTHS CLOSURE WHICH INCLUDES THE FINAL COLLECTION OF PROPERTY TAX AND OUR SALES TAX TRENDS, BECAUSE THOSE ARE IMPORTANT DATA POINTS FOR US.

SO THEN WE'RE ABLE TO PRESENT IN FEBRUARY, WHERE THIS YEAR IS TRENDING AND WHAT WE MIGHT HAVE TO MODIFY.

I BELIEVE WE BUILT THIS BUDGET FROM A PROACTIVE STANDPOINT OF ANTICIPATING PAIN POINTS.

AT THIS POINT IN TIME, I'M CONFIDENT THAT OUR NUMBERS ARE AS BEST AS WE CAN PROJECT.

THERE ARE IMPACTS THAT GO LIVE FROM HR 1.

THERE ARE IMPACTS THAT GO LIVE FROM THE STATE BUDGET THIS FISCAL YEAR, BUT THEY DON'T APPEAR SIGNIFICANT ENOUGH TO DEMAND IMMEDIATE CUTS OR REDUCTIONS.

NONETHELESS, WE ARE GONNA, WE ALREADY ARE WORKING ON CONTINGENCY SCENARIOS FROM A STAFF STANDPOINT AND WORKING WITH DEPARTMENTS ABOUT HOW WE MIGHT BE MORE NIMBLE AND SLOW CERTAIN COST POINTS ADMINISTRATIVELY.

WE HAVE TO DO THAT NOW AND WE'RE DOING THAT WORK NOW.

- EXCELLENT.

THAT WAS EXACTLY WHAT I WAS LOOKING FOR AND ASKING, YOU KNOW, I THINK THAT IT'S IMPORTANT DUE DILIGENCE FOR US TO ENSURE THAT THE DECISIONS THAT WE MADE, THE CONVERSATIONS WE HAD IN JUNE, REMAIN RELEVANT TODAY BASED ON ALL OF THE CHANGING FACTORS IN OUR ENVIRONMENT.

I APPRECIATE THE OPPORTUNITY FOR ME AND FOR US TO VALIDATE BOTH THOSE DECISIONS AND ALSO THE GOOD WORK IN THE, THE BUDGET CREATION PROCESS THAT ALL OF YOU DID.

SO THANK YOU FOR THAT.

I'D BE INTERESTED TO SEE IF ANY OF MY COLLEAGUES HAVE QUESTIONS ABOUT THIS.

AND AFTER WE DO THAT AND GO TO PUBLIC COMMENT, I'D BE HAPPY TO MOVE THE RECOMMENDED ACTIONS.

WHEN THE RIGHT TIME COMES, - WE'LL MOVE, WE'LL MOVE TO PUBLIC COMMENT FIRST.

IS THERE ANYONE IN THE PUBLIC WISHING TO ADDRESS US ON THIS ITEM? - THANK YOU. BECKY STEINBRUNER.

THANK YOU, SUPERVISOR MARTINEZ FOR PULLING THIS.

IT IS THE RIGHT THING TO DO SOMETHING SO PROFOUND SHOULD NOT BE ON THE CONSENT AGENDA.

SO THANK YOU.

AND IT FIT, IT FIT WELL WITH THE EARLIER DISCUSSION.

[03:00:01]

I AM ASKING YOU AS OUR REPRESENTATIVES TO HOLD MORE FREQUENT TOWN HALL MEETINGS.

IN THESE TIMES IS APPROACHING, IT WILL BE EVEN MORE IMPORTANT THAT YOU HAVE REGULAR AND MORE FREQUENT TOWN HALL MEETINGS WITH YOUR CONSTITUENTS.

NOT JUST THE STAKEHOLDERS, NOT JUST THE, THE NON-GOVERNMENTAL GROUPS, BUT THE PEOPLE.

PLEASE DO THAT.

I AM, UM, ASKING YOU ALSO TO CONSIDER AND ALL UPPER MANAGEMENT TO CONSIDER TITHING PART OF YOUR SALARIES TO HELP WITH THIS PROBLEM.

WE ALL SHOULD BE WORKING TOGETHER AND THAT INCLUDES YOU.

I WANT TO THANK SUPERVISOR DE SERPA FOR MAKING IT KNOWN THAT THERE ARE THE ROTARY CLINICS THAT ARE FOR FREE.

I WILL ALSO SAY THAT THE LIONS CLUBS MAKE FREE VISION SCREENING, EYEGLASSES, DIABETES HEARING, ALL OF THAT IS PROVIDED FOR FREE BY THE LOCAL LIONS CLUB.

AND IN FACT, THIS SUNDAY, THE LOCAL LIONS CLUBS WILL BE HOLDING A FREE CLINIC IN SALINAS THERE FOR VISION AND DIABETES SCREENING.

THERE ARE 500 FARM WORKER FAMILIES SIGNED UP ALREADY.

I HOPE THAT YOU'LL ALSO PARTNER WITH DR. ANNE LOPEZ AND THE CENTER FOR FARM WORKER FAMILIES IN ALL OF THIS WORK.

I ALSO ASK THAT YOU PARTNER WITH THE AG HISTORY PROJECT.

YOU HAVE THE NEW SOUTH COUNTY PARK THAT WAS A FARM.

WHY DON'T WE GROW FOOD THERE? AG HISTORY COULD PROVIDE THAT SERVICE.

I REQUEST THAT YOUR BOARD CONSIDER PROP 170.

IS THERE ANYONE ONLINE? - YES. CHAIR.

CALL IN USER THREE, YOUR MICROPHONE'S AVAILABLE.

- MARILYN GARRETT.

AND I DON'T SEE THE AMOUNT LISTED FOR THIS SUPPLEMENTAL FINAL BUDGET ACTIONS.

I'M INTERESTED IN THAT, BUT ALSO I'M JUST THINKING OF THE CONTRAST WITH THE DISCUSSION EARLIER OF THE SOCIAL SERVICES AND FOOD NETWORK SUPPLIES THAT ARE BEING CURTAILED.

SO THEN AND HEALTH SERVICES SO THAT PEOPLE WILL BE HUNGRY OR ON THE STREET OR STARVING.

AND IT SEEMS LIKE WHEN I THINK OF REGIONAL 911 CENTER AND EMERGENCIES, THIS HEALTH AND FOOD CRISIS BROUGHT ON LARGELY BY THE FEDERAL GOVERNMENT PRIORITIES.

THAT'S AN EMERGENCY.

WHEN PEOPLE CAN'T EAT, THEY'RE AFRAID TO TAKE THEIR CHILDREN TO SCHOOL AND BEING ASSAULTED BY THUGS IN MASKS, KIDNAPPING THEM, THAT'S AN EMERGENCY, THAT'S A CRISIS.

I THINK THE MONEY FOR THIS TO ME MAKES MORE SENSE TO GO TO PROVIDING THOSE GENUINE HEALTH AND FOOD SERVICES.

IT JUST SEEMS DISPROPORTIONATE AND MISDIRECTED.

PLUS THESE CENTERS HAVE ALL THESE RADIATION EMITTING DETECTION EQUIPMENT, WHICH IS FURTHER HARM TO HEALTH OF THE COMMUNITY.

- I SEE NO FURTHER SPEAKERS ONLINE CHAIR.

- THANK YOU. WITH THAT, I'LL BRING BACK TO THE BOARD.

- I'LL GO AHEAD AND MOVE THE RECOMMENDED ACTIONS CHAIR.

- WE HAVE A MOTION FROM SUPERVISOR MARTINEZ AND A SECOND FROM SUPERVISOR KOENIG.

IF WE COULD TAKE ROLL CALL VOTE.

- CAN I, CAN I ASK QUESTIONS BEFORE WE VOTE? - GO AHEAD.

- HI, MARCUS, THANK YOU SO MUCH FOR, FOR COMING FORWARD AND PRESENTING THIS INFORMATION.

AND I'M VERY GRATEFUL TO HEAR THAT OF COURSE, EVERY WEEK YOU'RE LOOKING AT WAYS TO BALANCE OUR BUDGET AND FIGURE OUT COST SAVINGS.

I REALLY APPRECIATE THAT.

IN THIS REPORT IT SAYS THAT WE'RE RUNNING A $33.6 MILLION DEFICIT

[03:05:03]

OR STRUCTURAL DEFICIT.

IS THAT CORRECT? - LET ME, LET ME EXPLAIN THAT.

THANK YOU FOR BRINGING THAT UP.

IT'S A REALLY GOOD OBSERVATION.

WE, WE FINISHED THE YEAR '24/'25 THE GENERAL FUND AT A TECHNICALLY WE OVERSPENT BY $33 MILLION.

SOME OF THAT WAS PLANNED EXPENDITURES, INCLUDING USE OF ONE ONE-TIME FUND BALANCE FOR CAPITAL PROJECTS AND THINGS THAT WE CARRIED OVER.

IN THE END WE HAD ABOUT 17 MILLION THAT WAS NET UNEXPECTED.

SOME OF IT WAS WE EXPECTED COVID REIMBURSEMENTS OF 6.7 MILLION, THAT NONE OF IT WAS RECEIVED IN THE LAST FISCAL YEAR.

WE'RE GONNA GET 2 MILLION THIS YEAR, BUT THAT, THAT MIGHT BE THE END OF IT.

AND TO SOME EXTENT, THAT'S BAD NEWS THAT WE'RE LOSING OUT ON MAYBE ALMOST $5 MILLION OF ANTICIPATED COVID REIMBURSEMENTS.

BUT AT LEAST THOSE COVID CLAIMS STARTED BECOMING HIGH RISK AND ONE WAY OR ANOTHER, IF WE GET TO, WE, THEY'RE OFF THE BOOKS WE'RE NO LONGER COUNTING ON SOMETHING THAT HAS A LOW PROBABILITY SO THAT WAS ONE OF THE THINGS THAT HAPPENED LAST YEAR.

WE, WE EXPECTED 6.7 MILLION AND THAT DIDN'T ARRIVE.

AND THEN WE HAVE IT ABOUT $12 MILLION OF OTHER COSTS, INCLUDING HOWEVER, WE DID A REALLY GOOD JOB WITH FILLING VACANCIES TO THE POINT WHERE WE MAYBE, YOU KNOW, I WENT BACK TO 2010S AND EVERY YEAR WE, WE FINISHED THE YEAR BOOKS WITH SOME LEVEL OF BUDGETED SALARY SAVINGS.

WE SPENT LESS THAN WE HAD IN THE BUDGET.

LAST YEAR WE BREAK EVEN NO SALARY SAVINGS.

THAT WAS, THAT'S UNPRECEDENTED.

SO TO THE EXTENT THAT, THAT WOULD CONTINUE AND WE HAVE CERTAIN CONTROLS OVER THAT ADMINISTRATIVELY AND AT THIS BOARD LEVEL TO THE EXTENT THAT THAT WILL CONTINUE, WE DO HAVE SOME EXPOSURE FROM AN ONGOING PERSPECTIVE.

WE ALREADY RIGHT SIZED THE BUDGET AND THE FINAL ACTIONS TO REDUCE OUR SALARY SAVINGS ASSUMPTIONS SO THAT WE, WE FEEL OUR '25/'26 BUDGET IS IN BALANCE AGAIN, BUT IT'S SOMETHING WE'RE GONNA BE MONITORING AND WORKING WITH DEPARTMENTS VERY FREQUENTLY TO KEEP, CLOSE EYES ON THIS SO WE DO HAVE A CONCERN OF ABOUT THE 10 TO $12 MILLION AMOUNT.

THE FACT THAT WE, WE, AGAIN, GOOD NEWS, WE DIDN'T HAVE SALARY SAVINGS.

WE FILLED POSITIONS.

WE PAID POSITIONS TO OUR BUDGET AUTHORITY.

BUT WE'VE ALWAYS HAD A LITTLE BIT OF CUSHION THERE.

IN THIS YEAR WE LAST YEAR'S BOOKS, THE PRELIMINARY UNAUDITED, OF COURSE, FINISHED WITH NO SALARY SAVINGS.

SO THAT IS AN ELEMENT THAT WE'RE CLOSELY TRACKING.

- SO ONE OF THE THINGS THAT I AM, YOU KNOW, OBVIOUSLY CONTINUE TO BE CONCERNED ABOUT IS THE BOND DEBT THAT WE'VE ISSUED ON BEHALF OF THE STORMS FROM '17 TO '23.

AND I KNOW THE FIRST PAYMENT COMES DUE IN, IS IT 2027? - YEAH, I'D SAY THERE'S GOOD NEWS THERE.

IN, IN THIS YEAR'S BUDGET WE HAD 5.7 MILLION, PROBABLY REALLY CONSERVATIVELY IN THE BUDGET FOR RECOVERIES OF FEDERAL DOLLARS THAT WE WOULD PAY DOWN OUR 2024 DEBT.

OUR STAFF ASSUMPTION THAT WE BUILT INTO OUR MODEL WAS A $12 MILLION COLLECTION THIS YEAR.

NOW AGAIN, EARLY, AND I DON'T WANNA JINX IT, BUT WE ARE LOOKING NORTH OF THAT $12 MILLION PROBABILITY.

NOW, THE FEDERAL SHUTDOWN WILL, MIGHT DELAY PAYMENTS WE RECEIVE IN THE NEXT, YOU KNOW, DAYS.

BUT WE ARE, WE ARE HAVING REALLY GOOD SUCCESS THUS FAR, ESPECIALLY WITH FEDERAL HIGHWAYS.

NOT NECESSARILY FEMA, BUT WE ARE HAVING GOOD SUCCESS WITH FEMA.

SO OUR 2023 STORM OF WHICH WE ISSUED THE BONDS FOR WE HAVE A PROBABILITY THAT WE'LL COLLECT MORE THAN OUR BUDGET OF 5.7.

WE'LL COLLECT MORE THAN OUR STAFF ASSUMPTION AT 12.

SO WE'RE HAVING REALLY POSITIVE INDICATIONS.

SO SEE THAT'S AN UNEXPECTED BONUS FOR US RIGHT NOW.

NOW WE'RE NOT, YOU KNOW, RUNNING TO THE BANK WITH THAT BUT I JUST WANNA SHARE THAT NEWS.

I THINK EVERY OTHER TIME WE'VE TALKED ABOUT FEDERAL GOVERNMENT AND DISASTER REIMBURSEMENTS, WE'VE BEEN VERY CAUTIOUS AND ACTUALLY VERY PESSIMISTIC.

- SURE. SO IS THAT MONEY BEING SET ASIDE OR BEING DIRECTLY PAYING DOWN SOME OF THAT DEBT? - PER BOARDS, PER BOARD'S ACTION AND WHAT WE REPORTED TO THE BOARD, EVERY DOLLAR WE GET BACK WILL GO INTO PAYING DOWN THE 2024 BONDS.

- THAT'S GREAT. - WE WANNA GET RID OF THOSE BONDS AS FAST AS POSSIBLE, AND WE PLANNED TO GET RID OF THOSE, A BIG CHUNK OF THOSE BONDS.

- OKAY. THANK YOU VERY MUCH.

- MADAM CLERK, CAN WE MOVE ON TO THE ROLL CALL VOTE.

- CERTAINLY.

SUPERVISOR DESERPA. - AYE.

- MOTION PASSES UNANIMOUSLY.

FOR THE SAKE OF TIME WE'RE GONNA CONTINUE

[9. Hold a public hearing to consider whether to take jurisdiction of appeal of the Planning Commission action to deny appeal of Minor Coastal Development Permit Application 241334 and consider request for simultaneous review]

AND TURN ON OVER TO THE NEXT AGENDA ITEM NUMBER NINE.

HOLD A PUBLIC HEARING TO CONSIDER WHETHER TO TAKE JURISDICTION OF APPEAL OF THE PLANNING COMMISSION ACTION TO DENY THE APPEAL OF MINOR COASTAL DEVELOPMENT PERMIT APPLICATION 241334 AND CONSIDER REQUEST FOR SIMULTANEOUS REVIEW.

I'LL TURN IT OVER TO LIZANNE JEFFS PRINCIPAL PLAN FOR THE PRESENTATION.

[03:10:01]

- YEAH, GOOD MORNING EVERYBODY.

SO I'LL TRY TO KEEP THIS BRIEF 'CAUSE I KNOW WE HAVE A LONG AGENDA TODAY.

SO APPLICATION 241334 IS A PROPOSAL TO BUILD A SECOND SINGLE FAMILY DWELLING WITH AN ATTACHED ADU ON AN EXISTING DEVELOPED PARCEL LOCATED IN BEACH DRIVE IN APTOS.

THE PARCEL'S LOCATED AT THE BASE OF THE COASTAL BLUFF AND IT'S IN AN AREA OF HOMES THAT WERE HISTORICALLY DEVELOPED ON A BEACH AND IN AN AREA WHERE MAJORITY OF BEACH DRIVE PARCELS INCLUDING THE SUBJECT PARCEL, ARE ALREADY DEVELOPED WITH ONE SINGLE FAMILY DWELLING.

THE ONLY DIFFERENCE IS THAT THIS PARCEL IS CONFIGURED DIFFERENTLY BECAUSE IT SPANS BEACH DRIVE.

THE PROPERTY IS OWNED RB, WHICH ESSENTIALLY STANDS FOR SINGLE FAMILY RESIDENTIAL ZONE, LOCATED ON A BEACH AND THE GENERAL PLAN DESIGNATION OF THE BUILDING SITE AND THE EXISTING HOME SITE IS R-UL OR URBAN LOW-DENSITY RESIDENTIAL.

THE REST OF THE SITE, WHICH IS THE UNDEVELOPED SANDY AREA, HAS A GENERAL PLAN OF OPEN SPACE AND RECREATION.

THE PROPOSED PROJECT WHICH WAS SUBMITTED UNDER THE PROVISIONS OF SB9 IS FOR THE CONSTRUCTION OF A TWO STORY DWELLING WITH AN ATTACHED ADU THAT WOULD BE BUILT ON A SITE THAT'S ALREADY DEVELOPED WITH AN EXISTING SINGLE FAMILY DWELLING THE CONSTRUCTION OF THIS SECOND PRIMARY RESIDENCE WOULD RESULT IN A TWO UNIT DWELLING GROUP TOGETHER WITH AN ADU AND WOULD RESULT IN THE ONLY TWO UNIT DWELLING GROUP ON ANY BEACH TYPE PROPERTY.

BECAUSE THE PROPOSED PROJECT DOESN'T COMPLY WITH MULTIPLE AREAS OF COUNTY CODE, THE GENERAL PLAN AND THE LOCAL COASTAL PROGRAM, OR WITH STATE REGULATIONS, WHICH WERE ALLOWED IN ACCORDANCE WITH SB9 THE APPLICATION FOR A COASTAL DEVELOPMENT PERMIT WAS ADMINISTRATIVELY DENIED ON MAY 27TH, 2025.

THE DENIAL OF THE APPLICATION WAS AN APPEAL TO THE PLANNING COMMISSION, WHO ON JULY 23RD, 2025, CONDUCTED A PUBLIC HEARING OF THE APPEAL.

AT THE HEARING FOLLOWING LENGTHY DISCUSSIONS, THE PLANNING COMMISSION DID NOT UPHOLD THE APPEAL AND THEREBY DENY, UPHELD THE DENIAL OF THE PROJECT.

THIS DENIAL WAS THEN APPEALED TO YOUR BOARD BY JOHN ERSKINE OF NOSSAMAN LLP ON BEHALF OF THE PROPERTY OWNERS KEVIN AND CINDY HUBER ON AUGUST 6TH, 2025.

SANTA CRUZ COUNTY CODE 18.10.340 SETS OUT THAT THE BOARD OF SUPERVISORS WILL NOT TAKE JURISDICTION ON AN APPEAL AND GRANT FURTHER REVIEW OF A MATTER UNLESS THE BOARD FINDS THAT ONE OF THESE FINDINGS IS TRUE.

THAT ON THE BASIS OF AVAILABLE EVIDENCE, THERE WAS AN ERROR OR ABUSE OF DISCRETION ON THE PART OF THE COMMISSION OR THAT THERE WAS A LACK OF FAIR AND IMPARTIAL HEARING, OR THAT THE DECISION APPEALED FROM IS NOT SUPPORTED BY THE FACTS PRESENTED AND CONSIDERED AT THE TIME THAT THE DECISION THAT APPEALED FROM WAS MADE.

OR THAT THERE'S A SIGNIFICANT NEW EVIDENCE RELEVANT TO THE DECISION, WHICH COULD NOT HAVE BEEN PRESENTED AT THE TIME OF THE DECISION THAT IS BEING APPEALED WAS MADE, OR FINALLY, THAT THERE IS EITHER AN ERROR OR ABUSE OF DISCRETION OR SOME OTHER FACTOR WHICH RENDERS THE ACT DONE OR DETERMINATION MADE UNJUSTIFIED OR INAPPROPRIATE TO THE EXTENT THAT A FURTHER HEARING BEFORE THE BOARD IS NECESSARY.

SO I'LL GO THROUGH THESE JUST QUICKLY.

SO THERE'S NO EVIDENCE THAT THE PLANNING COMMISSION ACTED IN ERROR OR ABUSED THEIR DISCRETION.

THE STAFF REPORT TO THE COMMISSION CLEARLY OUTLINED THE COUNTY CODE AUTHORITY FOR THE PROJECT DENIAL, THE POLICY BASIS FOR THE DETERMINATION AND THE DISCRETIONARY NATURE OF THE PLANNING COMMISSION'S REVIEW.

AND IT SHOULD ALSO BE NOTED THAT THE APPELLANT'S LETTER OF AUGUST 6TH BASICALLY JUST REPEATS THE ARGUMENTS REBUTTED BY THE STAFF LETTER TO THE COMMISSION AND THAT THE APPELLANT DID NOT SUBMIT ANY DOCUMENTATION OF ANY ERROR OR ABUSE IN DISCRETION BY THE COMMISSION.

ALL OF THE HEARINGS ON THE PROJECT ARE BEING CONDUCTED IN ACCORDANCE WITH THE PROCEDURE SET FORWARD IN COUNTY CODE.

PLANNING COMMISSION DECISION WAS MADE FOLLOWING A DULY NOTICE PUBLIC HEARING AT WHICH THERE WAS APPLICANT TESTIMONY AND PUBLIC COMMENT, AND THE COMPREHENSIVELY REFERENCED STAFF PRESENTATION BASED ON STATE AND COUNTY CODES, THE GENERAL PLAN, LOCAL COASTAL PROGRAM, POLICIES, AS WELL AS ON APPROVED CONSULTANT REPORTS.

AND SO THE CONDITION, THE COMMISSION'S, ACTIONS AND DISCUSSION WERE FOCUSED ON COUNTY REGULATIONS AND PROCESS AND EXPLICITLY CONSIDERED THE NEIGHBORHOOD CONTEXT.

AGAIN, IT SHOULD BE NOTED THAT THERE'S NO FLAW IN THE PERMIT PROCESS OR HEARING PROCEDURES, AND THAT THIS WAS NOT ALLEGED EITHER IN THE LETTER OF APPEAL.

THE HEARING WAS FAIR AND IMPARTIAL.

THE PLANNING COMMISSION DECISION WAS RENDERED

[03:15:02]

IN CONSIDERATION OF THE PROJECT PLANS AND OTHER MATERIALS, AND WAS BASED EXCLUSIVELY AND IMPARTIALLY AS WELL AS UNERRINGLY ON THE COUNTY CODE, THE GENERAL PLAN AND THE LOCAL COASTAL PROGRAM, AS WELL AS ON STATE REGULATIONS AND CONSULTANT DOCUMENTATION AND THE CHARACTERISTICS OF THE SITE.

THE PROPOSED PLANS AND DOCUMENTATION SUBMITTED BY THE APPLICANT WERE PRESENTED TO THE PLANNING COMMISSION AND EVERY AREA OF NON-COMPLIANCE WAS FULLY DELINEATED BY STAFF, WITH REFERENCE TO THE PLANS AND EVERY DOCUMENTATION OF THE SITE.

AND EVERYTHING WAS CONSIDERED BY THE COMMISSION AT THE TIME THE DECISION WAS MADE.

THIS IS JUST A QUICK SUMMARY OF THE ITEMS THAT ARE OUT OF COMPLIANCE.

THE PROJECT EXCEEDS DENSITY ALLOWED IN THE RB ZONE DISTRICT.

FLOODPLAIN AREAS SPECIFICALLY ARE TAKEN OUT FROM THE CALCULATION OF DENSITY FOR NEW DWELLING GROUPS AND THE PARCEL HAS CONSIDERABLY LESS THAN 8,000 SQUARE FEET OF DEVELOPABLE AREA.

THAT'S NOT IN THE FLOODPLAIN.

SAFETY ELEMENT PROHIBITS NEW BUILDING SITES THAT WOULD RESULT IN ADDITIONAL DENSITY IN COASTAL HAZARD AREAS.

THE PROJECT WOULD RESULT IN AN INCREASE IN BOTH LOT COVERAGE AND FLOOR AREA RATIO, BUT DOES NOT HAVE THE REQUIRED SITE AREA TO BASE THAT ON WHICH REQUIRES A PUBLIC HEARING FOR A VARIANCE WHICH IS PROHIBITED UNDER THE SB9 APPLICATION THAT WAS ACTUALLY SUBMITTED.

SO MOVING ON TO THE FINDINGS AGAIN.

SO, THE LETTER OF AUGUST 6TH REPEATS ARGUMENTS SUBMITTED IN THE PREVIOUS LETTERS, AND IT WAS REBUTTED BY STAFF AND REJECTED BY THE PLANNING COMMISSION.

THE APPELLANT HAS SUBMITTED NO NEW EVIDENCE OR DOCUMENTATION OR EXHIBITS IN SUPPORT OF THEIR CLAIMS. AND FINALLY, THE, THE APPELLANT HAS NOT IDENTIFIED ANY ERROR ABUSE, OR DISCRETION, OR ANY OTHER FACTOR THAT WOULD JUSTIFY FURTHER REVIEW BY YOUR BOARD.

NONE OF THE ASSERTIONS PRESENTED IN THE APPELLANTS BY THE APPELLANT POINT TO THE NEED FOR THE PROJECT TO BE RECONSIDERED BY A THIRD HEARING BODY.

SO IN SUMMARY, SOME STAFF HAVE PRESENTED SEVEN AREAS OF NON-COMPLIANCE WITH COUNTY CODE, GENERAL PLAN AND THE COASTAL PROGRAM THAT WERE REVIEWED BY COUNTY COUNCIL CONFIRMED BY NOTICE ADMINISTRATIVE REVIEW, AND UPHELD BY THE PLANNING COMMISSION.

SO TO TAKE JURISDICTION AND TO OVERTURN THE PLANNING COMMISSION DECISION, THE BOARD WOULD NEED TO FIND THAT EVERY ONE OF THOSE ITEMS THAT I OUTLINED ARE TRUE.

I JUST WANTED TO TOUCH ON THIS.

SO NOTWITHSTANDING THE QUESTION ABOUT WHETHER TO TAKE JURISDICTION, THE APPELLANT HAS INCLUDED IN THE LETTER OF APPEAL A REQUEST UNDER COUNTY CODE SECTION 18.10.126, TO ALLOW FOR SIMULTANEOUS REVIEW OF BOTH THIS APPEAL AND OF AN ALTERNATIVE APPLICATION FOR A SIMILAR PROJECT THAT WOULD BE SUBMITTED UNDER A REVISED FRAMEWORK.

TO PROVIDE SOME BACKGROUND THIS REVISED PERMITTING FRAMEWORK WHICH WAS DISCUSSED AT THE PLANNING COMMISSION HEARING, WOULD POTENTIALLY ALLOW FOR CONVERSION OF THE EXISTING DWELLING ON THE PARCEL TO AN ADU WHICH IS ALLOWED UNDER CURRENT STATE AND COUNTY REGULATIONS SO THAT A NEW PRIMARY DWELLING COULD THEN BE CONSTRUCTED.

AND THIS WOULD BE A VERY SIMILAR PROJECT PHYSICALLY, YOU KNOW, IN TERMS OF THE LAYOUT OF THE SITE AND THE DESIGN TO THE CURRENT PROJECT.

FOLLOWING THE PLANNING COMMISSION DENIAL OF THE APPEAL, THE APPLICANT APPLIED FOR A CONSULTATION REQUESTING THAT STAFF REVIEW THIS ALTERNATIVE PERMITTING PROCESS TO DETERMINE WHETHER IT WOULD PROVIDE A FEASIBLE PATHWAY FOR THE APPROVAL OF THE PROPOSED PROJECT.

INDEED THE CONSULTATION CONFIRMED THAT UNDER THIS ALTERNATE PERMITTING PATHWAY, THE PROPOSED RULING WOULD NOT BE SUBJECT TO DENSITY REGULATIONS THAT HAVE BEEN APPLICABLE TO THIS SB9 REGULATION APPLICATION AND ALSO THE, THE VARIANCES OF THE EXCEPTIONS TO SITE AND DEVELOPMENT STANDARDS COULD THEN BE PROCESSED IN ACCORDANCE WITH COUNTY CODE AND THE GENERAL PLANNER AND THE LOCAL COASTAL PROGRAM.

THESE ARE THE PROBLEMS THAT WERE NOT ALLOWED UNDER SB9.

HOWEVER, COUNTY CODE SPECIFICALLY PROHIBITS THE SUBMITTAL OF ONE OR MORE APPLICATIONS CONTAINING ALTERNATIVE PROJECTS ON ANY ONE PARCEL OF LAND FOR SIMULTANEOUS REVIEW UNLESS IT'S OTHERWISE APPROVED BY YOUR BOARD.

SO THIS PATH IS NECESSARY ONLY IF THE APPEAL REMAINS ACTIVE, AND IF YOUR BOARD CHOOSES TO UPHOLD THE STAFF RECOMMENDATION ON THIS APPEAL AND DECLINE TO TAKE JURISDICTION, THERE WOULD BE NO NEED TO HAVE A SIMULTANEOUS REVIEW BECAUSE THE PLANNING COMMISSION'S DENIAL WILL STAND

[03:20:03]

AND THE ONLY APPLICATION FOR THE PROPERTY WOULD THEN BE THE NEW APPLICATION UNDER A DIFFERENT PATHWAY.

SO WITH THAT, AFTER CONDUCTING A PUBLIC HEARING TO CONSIDER WHETHER TO TAKE JURISDICTION OF THE APPEAL OF THE PLANNING COMMISSION'S ACTION TO UPHOLD STAFF'S DETERMINATION OF DENIAL OF APPLICATION 241334 THAT YOUR BOARD DECLINED TO TAKE JURISDICTION OF THE APPEAL FOR THE APPLICATION 241334, WHICH WOULD ALSO RENDER THE APPLICANT'S REQUEST FOR SIMULTANEOUS REVIEW VOID.

SO THAT CONCLUDES THIS.

IF YOU HAVE ANY QUESTIONS, I'D BE HAPPY TO ANSWER THEM.

- THANK YOU FOR THE PRESENTATION.

THIS IS A HEARING.

IS THE APPELLANT HERE AND WOULD LIKE TO MAKE A PRESENTATION? YOU HAVE NO MORE THAN 10 MINUTES.

JUST, TURN ON THE MIC THOUGH? - YEAH, I THOUGHT I HAD TWO MINUTES, SO THIS'LL BE NICE AND BRIEF FOR YOU.

CHAIR HERNANDEZ, MEMBERS OF THE BOARD, KEVIN HUBER, MY WIFE AND I ARE THE OWNERS OF 625 BEACH DRIVE.

THE LETTER THAT WAS SUBMITTED ON FRIDAY FROM THE NOSSAMAN FIRM AND JOHN ERSKINE OUTLINES THE DISAGREEMENT WITH STAFF'S POSITION ON THE EXISTING APPLICATION.

BUT THAT SAID AFTER THE PLANNING COMMISSION HEARING FOR OUR PROJECT, I WAS ABLE TO DISCUSS THE PROJECT, WITH PLANNING DIRECTOR MATT MACHADO AND HE OFFERED TO DISCUSS IT WITH HIS STAFF AND GET BACK TO ME WITH POSSIBLE ALTERNATIVES TO PURSUE, WHICH YOU HEARD A LITTLE BIT ABOUT.

FOLLOWING WHAT I UNDERSTAND WERE THOSE DISCUSSIONS BETWEEN MR. MACHADO, LIZANNE JEFFS AND JOCELYN DRAKE I RECEIVED A DESCRIPTION OF AN ALTERNATIVE APPLICATION APPROACH THAT WE MAY, WE BELIEVE, MAY PROVIDE THAT PATHWAY TO YES, THAT WE'VE BEEN HOPING FOR.

SO I, I SUBSCRIBE TO THE SAYING, WISDOM SELDOM COMES AND JUST BECAUSE IT COMES LATE IS NO REASON TO REJECT IT.

SO I WANT TO THANK THE STAFF MEMBERS FOR FINDING THAT WISDOM.

ALSO FOR WALKING THE TALK OF STREAMLINED SANTA CRUZ COUNTY.

I THINK YOU'RE GONNA HAVE A REPORT BACK, WHEN THAT WAS ON THE AGENDA WHEN WE WERE HERE FOR AN SB9 HEARING YOU'RE GONNA HAVE A REPORT BACK IN OCTOBER ON SOME OF THE THINGS STAFF IS DOING TO FIND THOSE PATHWAYS TO YES, AND I THINK THIS IS A GOOD EXAMPLE OF THAT, THAT MAY COME BEFORE YOU.

THE STAFF REPORT DOES OFFER FOUR ALTERNATIVES RELATING TO TAKING JURISDICTION OF THE APPEAL STAFF'S RECOMMENDED OPTION NUMBER TWO IS TO DENY TAKING JURISDICTION, WHICH RENDERS THE REQUEST FOR THE SIMULTANEOUS APPLICATION VOID.

HOWEVER, AND PART OF THE RATIONALE FOR THAT WAS THAT IT WOULD BE A BURDEN ON STAFF TO PROCESS TWO THINGS THAT THE APPEAL, AS WELL AS THE NEW APPLICATION AT THE SAME TIME.

UNFORTUNATELY, WITH OPTION TWO IF THE NEW APPLICATION IS NOT APPROVED IN LESS THAN 90 DAYS, IN ORDER TO PRESERVE OUR RIGHTS UNDER THE EXISTING APPLICATION, WE WOULD HAVE TO CHALLENGE THE DENIAL TO TAKE JURISDICTION.

THAT WOULD THEN ADD STAFF TIME AND COST AND HEADACHE FOR EVERYBODY.

SO I'D LIKE TO OUTLINE WHY I BELIEVE OPTION FOUR IS A BETTER ALTERNATIVE.

UNDER OPTION FOUR, THE COUNTY WOULD CONTINUE THE DECISION ON WHETHER TO TAKE JURISDICTION OF THE APPEAL TO A DATE UNCERTAIN AND WOULD THEN ALLOW SIMULTANEOUS APPLICATION FOR THE NEW PROJECT.

THIS OPTION WOULD PRECLUDE ADDITIONAL BURDEN ON STAFF AND WOULD ALLOW US TO CONTINUE THE PRODUCTIVE DISCUSSIONS WE'VE BEEN HAVING AND SUBMIT THE APPLICATION.

OPTION FOUR IS A WIN-WIN TODAY.

IT DOESN'T PREJUDICE US OR THE COUNTY.

OPTION FOUR DOESN'T TAKE AWAY YOUR ABILITY TO DENY TAKING JURISDICTION IN THE FUTURE IF YOU CHOOSE TO DO THAT.

AND OPTION FOUR IS ALLOWED UNDER COUNTY CODE SECTION 18.10.340 E3.

SO WITH THAT, I WOULD RESPECTFULLY ASK THE BOARD TO DISCUSS OPTION FOUR WITH STAFF AND TO ADOPT OPTION FOUR AS THE PREFERRED RECOMMENDATION TODAY.

THANK YOU. AND I'M AVAILABLE FOR QUESTIONS.

- THANK YOU. WITH THAT, WE'LL TAKE IT OUT TO THE PUBLIC.

THIS IS A PUBLIC HEARING.

ANYONE WISH TO ADDRESS US ON THIS ITEM? - THANK YOU. BECKY STEINBRUNER.

IT IS ODD TO ME TO SEE THAT THIS WAS DENIED BECAUSE IT WAS TOO DENSE AND TOO TALL.

TAKE A LOOK AT DOWNTOWN SANTA CRUZ.

SO, I, I WANNA SUPPORT THE APPLICANT'S SUGGESTION TO ADOPT RECOMMENDATION NUMBER FOUR BECAUSE IT DOES SEEM LIKE A WIN-WIN FOR EVERYONE.

AND I WANNA COMMEND COUNTY STAFF FOR WORKING WITH HIM TO COME UP WITH AN ALTERNATE PATHWAY THAT CAN SUPPORT, WHAT HE WANTS TO DO WITH HIS PROPERTY

[03:25:03]

AND ABIDE BY COUNTY REGULATIONS.

I ALSO FEEL THAT YOUR BOARD SHOULD REALLY CONSIDER THE GRAND JURY'S RECOMMENDATION THAT YOU ARE NOT, YOU SHOULD NOT BE DECIDING THESE THINGS, THAT YOU SHOULD CONVENE, RECONVENE, THE COUNTY'S BUILDING AND FIRE APPEALS BOARD THAT WOULD BE COMPOSED OF A GROUP OF PROFESSIONALS.

AND NOT THAT YOU ARE NOT COMPETENT, BUT I'M SAYING AS THE GRAND JURY FOUND, THESE TYPES OF ISSUES WOULD BE BETTER RESOLVED AND DECIDED, WITH A GROUP OF PROFESSIONAL BUILDERS, FIRE PEOPLE.

AND I HOPE THAT YOU WILL CONSIDER THE GRAND JURY'S RECOMMENDATION FOR THAT.

IN CLOSING, PLEASE APPROVE THE APPLICANT'S REQUEST FOR RECOMMENDATION FOUR.

- ANYONE ONLINE? - YES, CHAIR. WE DO HAVE A SPEAKER ONLINE.

MIKE, YOUR MICROPHONE'S NOW AVAILABLE.

- THANK YOU. CAN YOU HEAR ME? - YES, WE CAN.

- OH, GOOD AFTERNOON, AFTERNOON.

GOOD AFTERNOON, SUPERVISORS.

I PUT A LETTER IN, AND IT'S INTERESTING HEARING THE CONCILIATORY NATURE OF THE OWNER APPLICANT JUST NOW IN LIGHT OF THE CAUSTIC, AGGRESSIVE ATTACKING PAPER THAT WAS PUT IN BY THEIR ATTORNEYS.

SO WE HAVE TO KEEP ALL OF THIS IN MIND.

WHAT IS GOING ON IN THE LARGER PICTURE HERE? HOW MUCH STAFF TIME HAVE WE BEEN BURNING IN THE LAST FEW MONTHS WITH THESE REPEATED APPEALS FROM THIS DEVELOPMENT TEAM, NOT THIS OWNER, BUT THIS DEVELOPMENT TEAM, WITH THESE OUTRAGEOUS ASSERTIONS OF MISAPPLICATION OF CODE BY THE COUNTY, WHICH IS NOT HAPPENING? I HEARD MS. JEFF'S PRESENTATION. IT'S WONDERFUL.

EVERYTHING IS ON POINT.

CLEARLY, THERE'S NO ERROR OR ABUSE OF DISCRETION.

WITH REGARD TO THE ATTORNEYS, THE APPLICANT'S APPEAL LETTER, THEY'RE CLAIMING THAT THESE RULES WITH LOT COVERAGE AND FAR ARE BEING MISINTERPRETED.

I WAS THERE WHEN ALL THESE WENT THROUGH.

I WAS ON THE COUNTY WORKING GROUP REPRESENTING DISTRICT ONE WHEN ALL THIS STUFF WAS GOING ON.

IT WAS APPROVED BY YOUR BOARD IN DECEMBER 5, 2006.

AND AT THAT TIME, THREE OF THE FIVE SUPERVISORS WERE ATTORNEYS.

TWO OF THE ATTORNEYS WERE FOR DISTRICTS ONE AND TWO, ELLEN PERRY AND JAN BUTTES, BOTH OF THE DISTRICTS MOST AFFECTED BY THE COASTAL DEVELOPMENT CODE.

THE IDEA THAT THIS STUFF WAS NOT MEANT TO BE USED THIS WAY OR MISUNDERSTOOD IS NONSENSE.

JUST SO YOU KNOW I DON'T BELIEVE THAT THE ALTERNATE THAT THEY ARE TALKING ABOUT IS AS A SHOO-IN AS MIGHT BE BEING ALLUDED TO NOW.

BUT WHAT I WILL SAY IS YOU ABSOLUTELY SHOULD DECLINE TO TAKE JURISDICTION ON THE APPEAL.

THE APPEAL ITSELF IS ABSOLUTELY BASELESS, BUT LET'S REMEMBER AGAIN, JUST HOW AGGRESSIVELY THEY ARGUED TO THE CONTRARY.

PLEASE KEEP THAT IN MIND WHEN YOU'RE NOW TRYING TO JUDGE THE SINCERITY OF THIS PROCESS.

THANK YOU FOR YOUR CONSIDERATION OF MY COMMENTS.

- WE HAVE NO FURTHER SPEAKERS ONLINE CHAIR.

- THANK YOU. JUST FOR CLARIFICATION, I WANT TO ASK STAFF, DOES RECOMMENDATION FOUR APPLY OR CORRELATE TO THE ALTERNATIVE PATHWAY THAT WAS DISCUSSED WITH COUNTY STAFF OR WITH OUR DIRECTOR? - I'M SORRY. CAN YOU JUST ASK THAT AGAIN? I DIDN'T QUITE CATCH EXACTLY WHAT YOU'RE...

- SO THE APPLICANT HAD A, DURING HIS PRESENTATION MENTIONED THAT HE HAD DISCUSSED THE ALTERNATIVE PATHWAY WITH DIRECTOR MATT MACHADO.

DOES THE RECOMMENDATION FOUR APPLY TO THAT DISCUSSION? - YEAH. OH YES. - OKAY.

- SO, UM, YEAH, THERE WAS AN APPLICATION SUBMITTED FOR A CONSULTATION.

I PERSONALLY UNDERTOOK THAT REVIEW, WHICH WAS TO REALLY LOOK AT THE POSSIBILITY OF LOOKING AT A DIFFERENT PATHWAY WHERE USING, INSTEAD OF SB9 THE ADU REGULATIONS, WHICH ALLOW FOR CONVERSION OF EXISTING STRUCTURES TO AN ADU, AND THERE'S NO SIZE LIMITATION TO THAT.

SO WHAT WE WERE LOOKING AT IS THAT THE EXISTING DWELLING WOULD THEN BE CONVERTED TO BE AN ADU, WHICH WOULD THEN ALLOW FOR THE CONSTRUCTION OF A NEW PRIMARY DWELLING ON THE SITE.

AND THE MAIN ISSUE WITH THE CURRENT APPLICATION IS THAT WE WOULD'VE BEEN HAVING TWO MAIN PRIMARY DWELLINGS ON THE PARCEL WHICH IS A DENSITY ISSUE, AND THEN RUNS INTO THE GENERAL PLAN POLICIES AND COASTAL POLICIES HAZARD AREAS.

WHEREAS IF IT'S A MAIN SINGLE-FAMILY DWELLING YOU CAN MITIGATE FOR THE HAZARDS AND YOU'RE NOT TECHNICALLY INCREASING DENSITY.

[03:30:04]

IT'S SLIGHTLY SEMANTIC IN DISCUSSION, BUT...

SO WE LOOKED AT THAT AND WE LOOKED AT THE DIFFERENT VARIANCES AND EXCEPTIONS THAT WOULD BE REQUIRED.

YOU KNOW, AND LOOKING AT BEACH DRIVE IN PARTICULAR, MANY OF THE PROPERTIES ALONG THERE, ALMOST EVERYTHING, IS REQUIRED TO GET A VARIANCE FOR HEIGHT BECAUSE THEY HAVE TO BE ELEVATED ABOVE THE FLOOD FLOODS ON THE WAVE RUN UP.

ALMOST ALL OF THEM HAVE VARIANCES TO LOT COVERAGE FLOOR AREA BECAUSE THE LOTS ARE SMALL OR VERY RESTRICTED.

SO, THE VARIANCES THAT WOULD BE REQUIRED IN SUPPORT OF THAT SEEM REASONABLE.

OBVIOUSLY, WE WOULD HAVE TO BE ANALYZING THE SPECIFICS WHEN THE APPLICATION COMES IN, BUT WE DO HAVE A, A PRETTY GOOD IDEA OF WHAT THE PROJECT'S GONNA LOOK LIKE.

SO, YOU KNOW, WE WERE ABLE TO LOOK AT IT BASED ON THAT AND FEEL THAT IT DOES FIT WITHIN THE CODE, YOU KNOW, REQUIREMENTS TO SOMETHING THAT COULD BE CONSIDERED.

- THANK YOU FOR THE CLARIFICATION.

AND WITH THAT, I'LL BRING BACK TO THE BOARD FOR ANY COMMENTS, QUESTIONS.

SUPERVISOR KOENIG.

- GREAT. THANK YOU, CHAIR.

THANK YOU, STAFF.

I'LL ADMIT MY HEAD WAS, IT WAS SPINNING A LITTLE BIT WHEN THIS FIRST SHOWED UP ON OUR AGENDA BECAUSE WE HAD...

I WAS LIKE, "HADN'T WE DO THIS ONE ALREADY?" BUT THEN I REALIZED IT WAS, WE HAD JUST DISCUSSED THIS APPLICATION EXTENSIVELY, WHEN WE WERE LOOKING AT OUR SB9 ORDINANCE.

AND SO, THAT'S WHY IT FELT A LITTLE BIT, LIKE A DO-OVER AND OF COURSE, AS THE, MR. GOOSE POINTED OUT, WE'VE ALSO RECEIVED SO MANY APPEALS FROM THIS DEVELOPMENT TEAM THAT THAT'S ALSO GOT US TALKING IN CIRCLES A LITTLE BIT.

BUT I, YOU KNOW, I THINK IT BECAME CLEAR DURING THE SB9 ORDINANCE HEARING THAT, THIS PROJECT IS REALLY NOT A GOOD FIT FOR SB9.

COUNTY COUNCIL EXPLAINED MS. [INAUDIBLE] THAT YOU KNOW, SB9 IS REALLY A STREAMLINING ORDINANCE.

IT'S NOT MEANT TO APPLY IN AREAS THAT ARE DIFFICULT OR WHERE THERE'S, THERE'S HAZARDS PRESENT.

AND THAT'S WHAT WE'VE GOT HERE.

AND THEN OF COURSE, WE'RE SEEING THAT THERE'S SORT OF A CATCH-22 WITH AN SB9 APPLICATION HERE BECAUSE THE SITE REQUIRES VARIANCES, AND SB9 DISALLOWS PUBLIC HEARINGS TO DISCUSS THOSE VARIANCES.

IT'S BASICALLY, IT'S JUST COMPLETELY UNTENABLE WITH A, AS AN SB9 APPLICATION.

SO IT SEEMS PRETTY CLEAR THAT, TO ME, LIKE THIS IS NOT A VIABLE PATH.

I APPRECIATE STAFF IDENTIFYING ONE THAT IS, AND THAT ACTUALLY EVEN THOUGH IT SOUNDS WEIRD, BECAUSE IT REQUIRES VARIANCES, AS HAS BEEN POINTED OUT, PRETTY MUCH EVERY PARCEL ON BEACH DRIVE HERE DOES REQUIRE SUCH VARIANCES.

AND SO IT'S NOT REALLY ANYTHING NEW.

THE... THERE WERE SOME DISCUSSION OF RECOMMENDED ACTION FOUR I DON'T ACTUALLY SEE A RECOMMENDED ACTION FOUR.

I THINK THE SUGGESTION WAS MAYBE THAT, WE'VE, THAT, THAT THE CRITERIA FOUR BE ACKNOWLEDGED BY THIS BOARD THAT THERE'S SIGNIFICANT NEW EVIDENCE RELEVANT TO THE DECISION, WHICH COULD NOT HAVE BEEN PRESENTED AT THE TIME THE DECISION APPEALED FROM WAS MADE.

I'M NOT SURE THAT... I DON'T SEE THAT WE ACTUALLY MEET THAT CRITERIA, GIVEN THAT AN ALTERNATIVE APPLICATION WAS DISCUSSED AT THE PLANNING COMMISSION.

I DON'T SEE ANY NEW EVIDENCE HERE, COUNTY COUNSEL.

- IT'S JUST IN THE EXECUTIVE SUMMARY THERE WERE FOUR OPTIONS IDENTIFIED.

AND SO WHAT THE APPLICANT IS POINTING OUT IS TO TAKE THE FOURTH ROAD, WHICH IS JUST TO CONTINUE THE ITEM.

- OH, I SEE. CONTINUE THE JURISDICTIONAL HEARING, INDEFINITELY.

YEAH.

OKAY.

I MEAN, I WOULD LEAN MORE TOWARDS JUST THE RECOMMENDED ACTIONS, WHICH IS TO DECLINE TO TAKE JURISDICTIONAL HEARING OF THE APPLICATION.

I COULD BE CONVINCED PERHAPS FOR FOUR.

I'LL JUST HEAR WHAT MY COLLEAGUES HAVE TO SAY.

I THINK WHAT I HEARD FROM THE APPLICANT IS THAT, BECAUSE OF THE VERY, VERY SHORT TIMELINE, 90 DAYS IN ORDER TO HAVE THE NEW PLAN...

AND THANK YOU FOR FINDING A WAY FORWARD VERY, VERY, VERY MUCH, BUT THAT WINDOW IS SO SMALL THAT IN CONTINUING THE MATTER, THERE WOULD BE MORE TIME CORRECT? TO GET APPROVALS.

- I THINK, YEAH, BUT MY UNDERSTANDING IS THE 90-DAY WINDOW IS A WINDOW TO FILE LITIGATION AGAINST THE DENIAL IF THIS ITEM IS NOT TAKEN UP.

AND THE 90-DAY WOULDN'T BE SUFFICIENT TIME TO TAKE IN AN APPLICATION, FULLY PROCESS IT, TAKE IT TO HEARING AND GET IT APPROVED.

IT MIGHT NOT BE CONSIDERABLY LONGER THAN THAT, BUT IT WOULD, 90 DAYS WOULD BE PRETTY MUCH PUSHING IT.

[03:35:03]

SO I THINK WHAT THE APPLICANT IS REQUESTING IS JUST THAT YOU DON'T MAKE A DECISION TODAY, THAT YOU DECIDE TO CONTINUE THIS DECISION, THIS HEARING, TO POSTPONE THE DECISION ON WHETHER TO TAKE JURISDICTION UNTIL SOME FUTURE DATE AT WHICH IF THE APPLICANT IS ABLE TO GET HIS PERMIT, HE WILL JUST SIMPLY WITHDRAW HIS APPEAL.

SO IT WON'T NEED TO COME BACK BEFORE YOUR COMMISSION.

OR IF HE'S UNSUCCESSFUL, THAT HE WOULD BE ABLE TO THEN COME BACK TO YOUR BOARD, DECIDE TO TAKE JURISDICTION AND CONTINUE THIS PROCESS, TO EXHAUST HIS REMEDIES.

THAT, THAT'S MY UNDERSTANDING.

STAFF DOES NOT BELIEVE THAT THIS IS NECESSARY AND ARE RECOMMENDING THAT YOU DENY, BECAUSE THEN WE DON'T NEED CONCURRENT PROCESSING.

AND, AND AS I'VE SAID, I THINK AFTER DOING THE CONSULTATION THERE'S A LEVEL OF COMFORT WITH THE APPLICATION THAT HAS BEEN THE ALTERNATE PERMITTING PATHWAY THAT'S BEING PROPOSED.

BUT THAT'S BASICALLY THE NUTSHELL.

- REALLY QUICK, I WANNA SAY THAT THAT'S RECOMMENDED ACTION NUMBER FOUR THAT YOU JUST DESCRIBED, BUT I THINK THAT THE RECOMMENDED ACTION YOU'RE ASKING ABOUT IS NUMBER TWO.

THAT GIVES OVER THE 30 DAYS.

- NO, I WAS ACTUALLY ASKING ABOUT NUMBER FOUR, WHAT THE APPLICANT IS REQUESTING FROM THIS BOARD, WHICH IS NOT A, NOT AN APPROVAL OR A DENIAL, BUT A CONTINUANCE OF THE MATTER.

- YES.

- MORE QUESTIONS? SUPERVISOR CUMMINGS? - YEAH, JUST A COUPLE OF COMMENTS.

I'LL JUST SAY THAT, YOU KNOW, WHAT'S BEFORE US IN TERMS OF THE APPEAL IS THE APPLICATION THAT HAS BEEN SUBMITTED, AND THAT'S REALLY WHAT WE'RE DECIDING ON IF WE WERE TO TAKE JURISDICTION, AND WE'D HAVE TO MAKE THE GROUNDS UPON WHICH, LIKE WHY WE'RE TAKING JURISDICTION AS IT'S BEEN LAID OUT IN THE AGENDA REPORT.

AND IT'S PRETTY CLEAR THAT I DON'T THINK WE HAVE GROUNDS UPON WHICH, LIKE NEW INFORMATION THAT WOULD ALLOW US TO TAKE JURISDICTION.

AND SO BY DECLINING TO TAKE JURISDICTION THAT DOESN'T STOP THE APPLICANT FROM MOVING FORWARD WITH A DIFFERENT APPLICATION.

AND IT MAKES, ACTUALLY, MAKES MORE SENSE BECAUSE WHY KEEP AN APPLICATION ON FILE THAT WE ALREADY REALIZE THAT, YOU KNOW, IT HAS BEEN DENIED IN THE FIRST PLACE.

SO I THINK THAT IT'S JUST IN TERMS OF EFFICIENCY, IT MAKES MOST SENSE FOR US TO DECLINE TO TAKE JURISDICTION HAVE THE APPLICANT WORK WITH STAFF, THEY FOUND A PATHWAY FORWARD AND HOPEFULLY THAT WILL MAKE THE PROCESS MORE EFFICIENT FOR THEM TO MOVE FORWARD WITH AN OPTION THAT CAN BE ACCEPTABLE TO PLANNING AND THAT THEY CAN MOVE FORWARD.

SO I'M DECLINED... I'M IN INCLINED TO MOVE WITH THE STAFF RECOMMENDATION - SUPERVISOR MARTINEZ.

- I'LL SECOND THE MOTION.

- CAN YOU REPEAT IT? - OH, I MEAN, I GUESS I'LL JUST MOVE THE RECOMMENDED ACTIONS.

SO IF THERE'S NO FURTHER COMMENT FROM...

SUPERVISOR KOENIG.

- I'LL JUST MAKE A BRIEF COMMENT.

JUST, I'M GONNA SUPPORT THE MOTION.

I JUST FEEL LIKE I, YOU KNOW I AM SYMPATHETIC TO WANTING TO SEE SOMETHING WORK FOR THE APPLICANT.

BUT THAT SAID, I DON'T, I JUST DO NOT SEE HOW THE APPLICATION IN FRONT OF US IS VIABLE WHETHER IT'S NOW OR CONTINUED, YOU KNOW, HOWEVER MANY DAYS FROM NOW.

AND I HEAR...

YEAH, SO I THINK IT'S BETTER JUST CLOSE THIS CHAPTER AND MOVE ON.

- SO WE HAVE A MOTION FROM SUPERVISOR CUMMINGS AND A SECOND FROM SUPERVISOR MARTINEZ.

IF THERE'S NO ADDITIONAL COMMENT...

I SEE THOSE EYES LIKE THEY'RE, YOU WANT TO COMMENT.

SUPERVISOR DE SERPA.

- NO, I MEAN, MY ONLY COMMENT IS THAT THIS IS MY JURISDICTION, THIS IS MY DISTRICT, AND I CANNOT SUPPORT, THE RECOMMENDED ACTION TODAY.

YOU KNOW, I THINK, I FELT LIKE THE PRESENTATION BY THE APPLICANT WAS VALID.

AND, AND SO I WANNA RESPECT THAT.

- MADAM CLERK.

- SUPERVISOR KOENIG? - AYE.

- MARTINEZ? - AYE.

- CUMMINGS? - AYE.

- DE SERPA? - NO.

- AND HERNANDEZ? - AYE.

- MOTION PASSES WITH ONE NO VOTE, SUPERVISOR DE SERPA.

WE HAVE A SCHEDULED ITEM FOR 1:45.

WE HAVE A LONG CLOSED SESSION, SO WE WILL CONVENE TILL 1:45.

01:30? ARE YOU SURE? - YES, THAT'S 1:30 SPECIAL SET ITEM.

AND THERE'S NOTHING REPORTABLE FROM CLOSED SESSION.

- OKAY. SO THAT'S 1:30 OR SO.

- CHAIR, I THINK WE SKIPPED ITEM EIGHT, RIGHT? SO WE NEED TO COME BACK TO THAT.

[03:40:03]

- YEAH, WE SKIPPED ITEM EIGHT.

SO ITEM EIGHT WILL BE SHOULD BE THE FIRST THING PICKED UP AFTER LUNCHTIME.

- GREAT.

- BEFORE WE MOVE ON TO THE SCHEDULED ITEM,

[8. Consider Health Services Agency’s proposal to continue to monitor and assess the MediCruz program on a quarterly basis throughout Fiscal Year 2025-26, and take related actions]

WE'RE GONNA FINISH ON, ON ITEM NUMBER EIGHT ON THE AGENDA CONSIDER HEALTH SERVICES AGENCY PROPOSAL TO CONTINUE TO MONITOR AND ASSESS THE MEDICRUZ PROGRAM ON A QUARTERLY BASIS THROUGH FISCAL YEAR '25/'26, AND TAKE RELATED ACTIONS ALTERNATE OVER TO KARINA MORENO, HER AS THE DIRECTOR OF THE HEALTH SERVICES, JENNIFER HERRERA, ASSISTANT DIRECTOR OF HEALTH SERVICES.

AND I CAN'T... I SCRATCHED OVER MY...

- LUN WANG.

- YES, LUN WANG.

GOOD AFTERNOON, MEMBERS OF THE BOARD, CHAIRMAN HERNANDEZ.

WE ARE HERE TO PRESENT AN UPDATE AND A PROPOSAL FOR YOU ON OUR MEDICRUZ PROGRAM, WHICH IS OUR INDIGENT CARE PROGRAM.

SO WE HAVE OUR STAFF HERE WHO WILL PROVIDE YOU WITH THAT INFORMATION, AND WE'LL BE AVAILABLE FOR QUESTIONS.

JENNIFER.

- GREAT. THANK YOU.

GOOD AFTERNOON.

SO JUST A LITTLE BIT OF BACKGROUND.

WE WERE ASKED TO...

DURING OUR BUDGET HEARINGS, HSA BUDGET HEARINGS, WE WERE ASKED BY THE BOARD TO COME BACK IN AUGUST TO TALK ABOUT MEDICRUZ AND PROPOSE A MID WHAT WOULD IT LOOK LIKE IF WE NEED TO DO A MID-YEAR PIVOT? AS YOU ALL ALREADY, WE ALREADY HEARD THIS MORNING, WHEN HR1 ACTUALLY PASSED WE DIDN'T SEE THE QUITE THIS CASCADE, THE, THE QUICK CASCADE OF CHANGES NEEDED TO THE MEDICRUZ PROGRAM.

SO WE DID ASK FOR A DEFERRAL TO DO A LITTLE TAKE A LITTLE BIT MORE TIME, MEET WITH STAKEHOLDERS, DO A LITTLE BIT DEEPER ASSESSMENT WITHIN OUR TEAM.

IT REALLY IS YOU KNOW...

WITH, WITH THE MEDICAID CHANGES, BEING ROLLED OUT OVER A FEW YEARS THIS IS REALLY, WE'RE REALLY TAKING ON THE MINDSET OF A MARATHON NOT NECESSARILY A SPRINT, AND BEING REACTIVE TO MAKING TOO MANY CHANGES TOO QUICKLY.

SO THAT'S WHERE WE'RE AT.

BEFORE I MOVE ON TO THE NEXT FEW SLIDES, I DO WANNA THANK OUR TEAM.

THIS HAS BEEN A PARTNERSHIP TO REALLY LOOK AT TO DUST OFF THIS PROGRAM, WHICH YOU'LL SEE IN THE DATA HAS BEEN SYSTEMATICALLY DOWNSIZED OVER THE PAST, 10 OR SO YEARS SINCE THE PASSAGE OF AFFORDABLE CARE ACT.

AND SO WE WERE, WE ARE NOW AT A SPACE WHERE THIS IS A TOOL IN OUR TOOL BELT THAT HAS, IS VERY BENEFICIAL, BUT IT'S LIKE A RUSTY TOOL, YOU KNOW, SO IT'S SOMETHING THAT WE ARE HAVING TO DUST OFF AND REALLY THINK ABOUT HOW CRITICAL THIS PROGRAM IS GOING TO BE IN THE NEXT FEW YEARS.

OKAY.

SO I'M GONNA REVIEW, YOU KNOW, WHY, SOME BACKGROUND ON WHY THIS PROGRAM EXISTS.

WHAT IS THE PROGRAM, HOW IT'S FUNDED AND UTILIZED, AND THE PROPOSAL FOR MONITORING.

SO FIRST, THIS PROGRAM, MEDICRUZ, IT'S ALSO KNOWN AS A MEDICAL INDIGENT ADULT PROGRAM OR AN MIA PROGRAM.

IT IS OUR WAY IN THIS COUNTY OF FULFILLING OUR CALIFORNIA CODE WELFARE AND INSTITUTION CODE 17,000 OBLIGATION, WHICH IS THAT EVERY COUNTY AND EVERY CITY AND COUNTY SHALL RELIEVE AND SUPPORT ALL INCOMPETENT, POOR, INDIGENT PERSONS AND THOSE INCAPACITATED BY AGE, DISEASE OR ACCIDENT, LAWFUL RESIDENT THEREIN, WHEN SUCH PERSONS ARE NOT SUPPORTED AND RELIEVED BY THEIR RELATIVES OR FRIENDS BY THEIR OWN MEANS, OR BY STATE HOSPITALS OR OTHER STATE OR PRIVATE INSTITUTIONS.

SO IN SUMMARY, THIS IS A PROGRAM THAT'S KNOWN AS A PAYER OF LAST RESORT.

IT'S A SAFE, IT'S WHAT I LIKE TO THINK OF, AS A SAFETY NET TO THE SAFETY NET.

IT REALLY ENSURES SOME CRITICAL FUNDING TO HELP ALLEVIATE THE STRAIN ON OUR HEALTHCARE SYSTEMS AND ENSURE SOME PAYMENT FOR UNCOMPENSATED CARE.

AS I MENTIONED, THIS IS A MANDATE OF ALL COUNTIES IN CALIFORNIA, THIS IS A STATE MANDATE.

SO WE DO RECEIVE STATE FUNDING FOR IT, AND EVERY COUNTY IMPLEMENTS THIS OBLIGATION IN THEIR OWN UNIQUE WAY.

IF YOU'VE LOOKED AT ONE MIA PROGRAM, YOU'VE LOOKED AT ONE MIA PROGRAM.

EVERY COUNTY HAS AND THROUGH BOARD DIRECTION HAS AUTHORITY TO SET THE THE POLICIES,

[03:45:03]

THE ELIGIBILITY STANDARDS WHICH WE WOULD RECOMMEND AS HSA BEING THE FACILITATOR OF THE PROGRAM WE WOULD RECOMMEND TO THE BOARD.

SO JUST CONTINUING ON WITH SOME BACKGROUND THIS VISUAL JUST KIND OF SHOWS WHAT THINKING ABOUT HEALTH COVERAGE AS A CONTINUUM OR A SPECTRUM.

ON ONE END OF THE SPECTRUM, YOU HAVE A PRIVATE HEALTH INSURANCE AND EVEN PUBLIC AND SUBSIDIZED INSURANCE.

SO PUBLIC AND SUBSIDIZED, MEDI-CAL, MEDICARE, EVEN THE SUBSIDIZED COVER CALIFORNIA OPTIONS.

THESE ARE HOLISTIC, COMPREHENSIVE HEALTH INSURANCE COVERAGES.

MEDICRUZ IS NOT THAT, MEDICRUZ IS A SAFETY NET PROGRAM.

IT IS SHORT-TERM COVERAGE FOR VERY SPECIFIC CONDITIONS.

IT DOES COVER PRIMARY CARE IN JUST THE COUNTY CLINICS, BUT IT IS IN THE, THE SAME BUCKET OF SAFETY NET PROGRAMS AS SUPERVISOR DE SERPA YOU MENTIONED THE ROAD ROTACARE CLINIC THE LIONS OPTOMETRY SERVICES.

SO IT'S IN THAT SUITE OF SERVICES.

IT IS STILL A VERY CRITICAL PROGRAM FOR OUR COMMUNITY AND OUR COMMUNITY AS, AS YOU HEARD EARLIER, WE ARE GOING TO SEE A TSUNAMI OF UNCOMPENSATED CARE ON OUR COMING TOWARDS US, UNLESS THERE'S SOME MAJOR POLICY CHANGES TO CHANGE THAT TIDE.

BUT IT, IT IS, IT'S VERY CRITICAL AND IT IS NOT GOING TO BE THE ANSWER TO FILL THE GAP FOR LOSS OF COVERAGE.

SO CONTINUING ON AT WHAT IS MEDICRUZ, AND HOW PEOPLE GET REFERRED FOR OUR SPECIALTY SERVICES OF OUR MEDICRUZ PROGRAM, PATIENTS CAN BE REFERRED BASICALLY THROUGH ANY OF OUR HEALTHCARE PARTNERS.

IT'S PRIMARILY UTILIZED BY OUR SAFETY NET, HEALTHCARE SYSTEM.

SO ALL THE FQHCS, PLANNED PARENTHOOD, THE HOSPITALS, THE MOBILE CLINICS, THEY CAN ALL REFER TO THIS PROGRAM IF THEY IDENTIFY A PATIENT WHO HAS NO COVERAGE AND WHO HAS A SPECIALTY CARE NEED.

IN ORDER TO BE ELIGIBLE, INDIVIDUALS HAVE TO MEET CERTAIN INCOME REQUIREMENTS.

THEY DO HAVE TO BE A RESIDENT FOR AT LEAST SIX MONTHS AND MEET SOME RESOURCE LIMIT REQUIREMENTS.

AND I WILL ADD TO THAT IN DECEMBER OF 2023, THE BOARD ACTUALLY CHANGED ELIGIBILITY TO EXPAND ACCESS IN ANTICIPATION FOR THE EXPANDED MEDI-CAL IN STARTING JANUARY, 2024.

SO PART OF FAST FORWARDING A BIT, PART OF THE REASON WHY WE'RE NOT RECOMMENDING ANY BIG CHANGES IS BECAUSE WE ACTUALLY JUST DID A CHANGE AND IT'D BE HELPFUL TO SEE HOW UTILIZATION TRENDS ARE OVER THE NEXT YEAR, TO SEE, YOU KNOW, IF, IF THIS IS THE RIGHT INVESTMENT MOVING FORWARD.

SO WHEN A PATIENT GETS REFERRED TO OUR PROGRAM, THIS PROGRAM IS OPERATED THROUGH OUR HEALTH CENTERS' DIVISION.

AND WHEN A PATIENT IS REFERRED, OUR HEALTH CENTER'S BENEFIT DIVISION OR BENEFITS PROGRAM LOOKS AT ALL OF THESE OTHER INDIGENT CARE PROGRAMS TO ASSESS WHAT'S THE RIGHT FIT FOR THE PATIENT.

BECAUSE MEDICRUZ BEING A PAYER OF LAST RESORT, MEANS THAT WE DO HAVE TO GO THROUGH A LEVEL OF VETTING TO ENSURE THAT IT TRULY IS BEING USED AS A LAST RESORT PROGRAM.

SO, THANKFULLY IN THIS COMMUNITY, WE DO HAVE A REALLY GREAT RELATIONSHIP WITH SUTTER.

WE THROUGH THEIR ACCESS TO CARE PROGRAM.

SO THIS PROVIDES ACCESS TO SPECIALISTS THROUGH THEIR SPECIALTY NETWORK, FOR INDIVIDUALS UP TO 200% OF THE FEDERAL POVERTY LEVEL.

OBVIOUSLY WE HAVE MEDICRUZ IF PEOPLE DO NOT, AREN'T ELIGIBLE FOR THE ACCESS TO CARE PROGRAM OR IF THERE ISN'T AVAILABILITY THROUGH THE SUTTER SPECIALISTS.

AND IF PEOPLE FALL BELOW THE 139% FEDERAL POVERTY LEVEL OF THEIR INCOME, THEN THEY'RE CONNECTED TO, TO MEDI-CAL.

WE ALSO HAVE KAISER IN THIS COMMUNITY, AND KAISER DOES HAVE AN INDIGENT CARE PROGRAM.

IT'S CALLED THE COMMUNITY HEALTHCARE PROGRAM.

IT'S ACTUALLY FULL COVERAGE FOR ADULTS.

IT'S FOR A SEQUENCE OF FOR THREE SUBSEQUENT YEARS UP TO 300% OF FEDERAL, FEDERAL POVERTY LEVEL.

SO WE'VE BEEN WORKING CLOSELY WITH KAISER TO ENSURE THAT THERE'S A COMMUNITY-WIDE SOCIALIZATION OF THIS INDIGENT CARE PROGRAM SINCE OPEN ENROLLMENT BEGINS IN NOVEMBER.

SO GOING INTO FUNDING.

IN YOUR BOARD ITEM, WE MENTIONED, THAT THIS PROGRAM IS FUNDED BY STATE REALIGNMENT.

IT'S ABOUT 1.8 MILLION FOR THIS YEAR.

THAT'S A 72% ON THIS PIE GRAPH.

WHEN WE LOOK AT MEDICRUZ AS A PROGRAM,

[03:50:01]

THERE ARE A COUPLE OF OTHER ALLOCATED FUNDING SOURCES IN THIS PROGRAM DESIGNATED FOR INDIGENT CARE.

SO THE ORANGE SLICE IS OUR EMERGENCY MEDICAL SERVICE.

THIS IS CALLED MADI FUNDS, IT'S STATE FUNDS.

IT HAS AN ALLOCATED, A DEDICATED PURPOSE TO PROVIDE FUNDING TO HOSPITALS FOR UNCOMPENSATED CARE IN EMERGENCY ROOMS. WE ALSO HAVE THIS LIGHT BLUE SLICE.

THIS IS CHARGES FOR SERVICES, WHERE WE HAVE THE SAFETY NET CLINICS CHIP IN FOR, TO COVER A HOSPITALIST OVER AT DOMINICAN WHO DOES FOLLOW-UP CARE FOR THEIR PATIENTS.

SO I JUST WANNA HIGHLIGHT THAT MEDICRUZ, AS WE SEE IT INTERNALLY IN OUR DEPARTMENT, COVERS INDIGENT SERVICES AND HAS A FEW OTHER FUNDING SOURCES.

BUT AS WE'RE TALKING ABOUT IT PUBLICLY AS A PUBLIC SERVICE WE'RE REALLY JUST TALKING ABOUT THIS 72% THAT'S FUNDED BY STATE REALIGNMENT.

AND WHAT YOU'LL SEE HERE IS THAT THERE IS NO GENERAL FUND CONTRIBUTING TO THIS FISCAL YEAR'S BUDGET PER MEDICRUZ.

AND THERE HASN'T BEEN GENERAL FUND OR NET COUNTY COST CONTRIBUTION FOR A NUMBER OF YEARS SINCE THE EXPANSION OF MEDI-CAL.

OKAY, SO THIS IS OUR ACTUAL REVENUES AND EXPENDITURES BY THE THREE YEAR FISCAL YEAR AVERAGE, BY THREE YEAR INCREMENTS GOING PAST 20 YEARS.

SO YOU'LL SEE HERE SO FIRST I WANNA POINT OUT THAT THE AFFORDABLE CARE ACT EXPANSION OF MEDI-CAL GROUPS WAS AROUND 2014.

AND YOU'LL SEE THAT IS WHEN WE STARTED TO SEE A DOWNWARD SHIFT IN TERMS OF OUR FUNDING AND OUR UTILIZATION, OUR EXPENDITURES.

AT THAT TIME WHEN THE STATE OPTED IN TO EXPAND, TO EXPAND MEDI-CAL ELIGIBILITY THEY PASSED AB 85, WHICH SHIFTED OUR HEALTH REALIGNMENT FUNDS AWAY FROM FUNDING PROGRAMS LIKE MEDICRUZ INTO MORE LIKE SOCIAL SERVICE PROGRAMS. SO WE ARE AT A POINT RIGHT NOW WHERE WE DON'T HAVE THE STATE REALIGNMENT LIKE SYSTEMATICALLY.

THE STATE DECIDED, HEY, BECAUSE WE ARE GOING TO SEE MORE PEOPLE COVERED BY FULL HEALTH INSURANCE, WE BELIEVE THAT COUNTIES NO LONGER NEED THE STATE, REALIGNMENT DOLLARS FOR THIS HEALTH PURPOSE AND SO IT WAS TAKEN AWAY FROM US AT THAT TIME.

AND YOU SEE THAT REFLECTED IN THE DOWNWARD TREND OF THE LIGHT BLUE LINE.

SO PRE ACA DAYS, IF WE WANNA USE THAT AS A ROUGH BASELINE OF WHAT WE COULD POTENTIALLY SEE WITH UNCOMPENSATED CARE WE HAD REVENUE OF ABOUT 5 MILLION ON AVERAGE.

AND WE, WE HAD EXPENDITURES, AROUND 6.5 MILLION ON AVERAGE.

THE GAP BETWEEN THAT 5 MILLION AND 6.5 MILLION WAS COVERED BY GENERAL FUND AT THE TIME.

LET'S SEE.

AND SO, YOU KNOW, THE QUESTION THAT WE WERE EXPLORING DURING THIS ASSESSMENT IS WHAT WOULD IT LOOK LIKE IF WE NEEDED TO RAMP UP THE PROGRAM? AND SO AGAIN, JUST USING ROUGHLY THE PRE ACA DATA, RIGHT NOW WE'RE AT ABOUT 1.8 MILLION TERMS OF WHAT WE GET FIRST FOR REVENUE WITH STATE HEALTH REALIGNMENT DOLLARS, WHICH IS SEPARATE FROM BEHAVIORAL HEALTH REALIGNMENT.

AND I, I FORGOT TO MENTION EARLIER THAT MEDICRUZ ONLY COVERS MEDICAL, THE SPECIALTY BEHAVIORAL HEALTH SERVICES ARE FUNDED THROUGH A DIFFERENT SYSTEM AND HAS A DIFFERENT REGULATORY REQUIREMENTS.

SO WE ARE AT 1.8, WE WOULD NEED ROUGHLY ABOUT 5 MILLION ADDITIONAL DOLLARS JUST TO GET BACK TO PRE ACA LEVELS IF WE'RE LOOKING AT THAT LEVEL OF EXPENDITURES.

BUT IN ADDITION TO THAT, BECAUSE THERE'S BEEN A SYSTEMATIC DOWNSIZING OF THIS PROGRAM IN TERMS OF OPERATIONS WE BASICALLY WOULD HAVE TO REBUILD AND MODERNIZE THE PROGRAM AS WELL.

AND SO WE'RE LOOKING AT GETTING TO BACK TO BASELINE PRE ACA 5 MILLION.

THEN SOME STARTUP FUNDS POTENTIALLY, AND PROBABLY A RAMP UP OF STAFFING.

AND THE STAFFING FOR THIS PROGRAM, WE DO HAVE PEOPLE WHO PROVIDE THE, THE BENEFIT SUPPORT, THE CLIENT SUPPORT.

WE ALSO HAVE PHYSICIANS LOOK REVIEWING THE SPECIALTY, REFERRALS TO ENSURE THAT THEIR, THEY MEET OUR POLICIES IN TERMS OF MEETING CRITERIA FOR MEDICRUZ SPECIALTY SERVICES.

AND SO ALL OF THAT ADDS UP AND THEN THAT DOESN'T EVEN INCLUDE YET THE JUST THE RISING COST OF HEALTHCARE THAT'S HAPPENED OVER EVEN SINCE 2020.

[03:55:01]

WHERE WE'VE HAD SOME OF OUR SUPPLIES AND EXPENSES DOUBLE SINCE 2020.

SO LOOKING BACK, EVEN IN THE PAST 20 YEARS, I MEAN, WE'RE, WE'RE LOOKING, THAT'S WHERE WE GET THE ROUGH ESTIMATE OF POTENTIALLY $10 MILLION OF NEEDED SUPPORT IF WE'RE GOING TO GROW THIS PROGRAM.

SO THIS GRAPH SHOWS WHAT OUR MEDICRUZ CLIENT NUMBERS HAVE BEEN OVER THE PAST FIVE FISCAL YEARS.

THE BLUE BARS ARE PRIMARY CARE.

AGAIN, THIS IS JUST THROUGH THE COUNTY HEALTH CENTERS.

AND THEN THE ORANGE BAR IS THE SPECIALTY CARE THAT WE GET REFERRALS FROM EVERYWHERE IN THE COUNTY.

THE GRAY LINE JUST SHOWS THE TOTAL.

WE DID SEE A BUMP UP OF CLIENTS DURING BASIC, DURING THE PANDEMIC.

PEOPLE SEEKING CARE AND PROBABLY DEFERRED CARE AND PEOPLE COMING INTO OUR CLINICS.

BUT WE'RE STARTING TO SEE THAT TREND DOWNWARD AND IT CONTINUES TO GO DOWNWARD INTO THIS PAST FISCAL YEAR OF '24/'25 WITH THE CONTINUED EXPANSION OF MEDI-CAL.

JUST LOOKING AT THE '23/'24 DATA, THE 661 PATIENTS, THAT WE'RE SEEING IN PRIMARY CARE, THAT ACCOUNTED FOR ABOUT $379,000 FOR OF THAT YEAR'S ALLOCATION FOR MEDICRUZ.

THE 173 PATIENTS ACCOUNTED FOR ABOUT $1.5 MILLION OF COSTS THAT YEAR.

SO JUST TO GIVE YOU A SENSE THAT, WE SEE MORE PATIENTS IN PRIMARY CARE, BUT IS, IT'S LESS EXPENSIVE THAN THOSE WE SEE IN SPECIALTY.

AND THEN THE SPECIALTY CARE, SOME DEPENDING ON WHAT'S ACTUALLY NEEDED THE PRICE VARIES PER CONDITION PER FREQUENCY OF SPECIALISTS THAT THEY NEED TO SEE YOU KNOW, ET CETERA.

OKAY.

ALL RIGHT.

AND I WILL TURN IT OVER.

SO THAT'S, THAT'S JUST A GENERAL ASSESSMENT OF WHERE WE'RE AT WITH THE MEDICRUZ PROGRAM.

I WILL SHARE THAT AS WE'VE BEEN ASSESSING THIS INTERNALLY WE'VE HAD LUN WONG, OUR HEALTH EQUITY OFFICER, CLOSELY INVOLVED WITH DRIVING THIS ASSESSMENT BECAUSE WE DO SEE MEDICRUZ AS IT'S ONE SLICE OF, WELL, AS I MENTIONED, IT'S A SAFETY NET.

A SAFETY NET IS LIKE A QUILT OF DIFFERENT SERVICES.

IF YOU PULL ON ONE END, IT'S GONNA AFFECT THE OTHER.

SO IF WE'RE, IF WE'RE GROWING OR, OR RESTRICTING MEDICRUZ HOW DOES THAT AFFECT THE GENERAL HEALTHCARE SYSTEM AND ACCESS TO CARE AND HOW DOES THAT AFFECT EQUITY OUTCOMES, HEALTH EQUITY OUTCOMES? SO WE'VE HAD OUR HEALTH EQUITY OFFICE, CLOSELY INVOLVED WITH THIS, AND I'LL TURN IT TO LUN TO TALK MORE ABOUT OUR APPROACH AND OUR PROPOSAL.

- GOOD AFTERNOON BOARD.

MY NAME IS LUN WONG.

I'M HSAS HEALTH EQUITY OFFICER.

I JUST WANTED TO TAKE THE OPPORTUNITY TO, SINCE I'M NEW TO YOU, ALSO SHARE THAT I'M A 20 YEAR RESIDENT OF SANTA CRUZ, AUCSC ALUM.

I'VE HAD THE FORTUNE OF WORKING IN ENCOMPASS COMMUNITY SERVICES WHEN DURING THE PANDEMIC, WHEN SUPERVISOR MARTINEZ WAS CEO.

SO I AM DEEPLY ROOTED IN THIS COMMUNITY AND INVESTED IN THIS COMMUNITY.

ALSO TO SHARE THAT.

I WANNA THINK ABOUT, YOU KNOW...

I LISTENED TO THE HR1 IMPACTS AND THE PRESENTATION YOU'VE HEARD A LOT OF CHALLENGING NEWS TODAY.

AND, AND REALLY GROUNDING THE MEDICRUZ PROPOSAL AS ONE STRATEGY AMONGST MANY, MANY OTHER STRATEGIES WE ARE EXPLORING WITH OUR HEALTHCARE STAKEHOLDERS AND COMMUNITY PARTNERS.

SO JUST AS WE GO THROUGH THE PLAN, I'LL SHARE A LITTLE BIT MORE ABOUT THAT WORK.

AND ALSO JUST TO SHARE THE HEALTH EQUITY OFFICE WAS REALLY BORN OUT OF THE BOARD'S RULING OF RACISM AS A PUBLIC HEALTH CRISIS BACK DURING THE PANDEMIC.

SO THANK YOU FOR MAKING MY POSITION COME TO FRUITION.

AND THAT KEY PART OF OUR WORK IN HEALTH SERVICES IS TO ENSURE EQUITABLE ACCESS TO CARE.

SO I'LL TALK A LITTLE BIT MORE ABOUT THOSE STRATEGIES THAT WE'VE BEEN WORKING ON.

SO WHAT YOU'LL SEE HERE THE FORTUNATE THING IS WE HAD SO MANY KEY STAKEHOLDERS THAT WE COULDN'T FIT THEM ON THE SLIDE.

SO WE HAVE BEEN VERY ACTIVELY ENGAGED AS OF JULY 15TH, WE PARTNERED WITH HEALTH IMPROVEMENT PARTNERSHIP TO KIND OF PULL TOGETHER A QUICK RAPID FIRE CONVENING OF THE STAKEHOLDERS YOU SEE ON THE SCREEN, TO BASICALLY COME TOGETHER AFTER THE PASSAGE OF HR1 AND ASK OURSELVES, WHAT ARE WE GONNA DO? RIGHT?

[04:00:02]

WHAT ARE WE GONNA DO TO MITIGATE THESE IMPACTS THAT ARE GONNA BE FELT ALL THE WAY FROM THE AMBULANCE PICKUP, OF ANY RESIDENT, OUR PUBLIC HEALTH DIVISION, ALL THE WAY TO THE HOSPITALS, THE CLINICS, AS WELL AS OUR PARTNERS IN BEHAVIORAL HEALTH SCHOOLS, RIGHT THE RIPPLE EFFECT.

AND WE'VE BEEN IN CONTINUED CONVERSATION WITH THEM.

YOU KNOW, THROUGHOUT JULY AND AUGUST ASSISTANT DIRECTOR HERRERA AND I HELD ONE-ON-ONE LISTENING SESSIONS WITH EACH OF OUR PARTNERS.

WE HELD 14 LISTENING SESSIONS IN TOTAL, AND JUST RECENTLY LAST WEEK IN SEPTEMBER 24TH, WE CONVENED ABOUT 22 OF OUR HEALTHCARE STAKEHOLDER PARTNERS, TO BASICALLY BEGIN DISCUSSING PRELIMINARY STRATEGIES ON HOW WE'RE GOING TO ENSURE THAT OUR HEALTHCARE SYSTEM IN THIS COUNTY REMAINS FISCALLY SUSTAINABLE AND OPERATIONAL.

SO JUST GROUNDING THIS A LITTLE BIT MORE IN MEDICRUZ IS ONE STRATEGY THAT CERTAINLY OUR COLLECTIVE GROUP IS CONSIDERING.

OTHER STRATEGIES INCLUDE YOU KNOW, CONSIDERING OUR CLOSE PARTNERSHIP WITH KAISER AND THE OPPORTUNITY FOR OPEN ENROLLMENT.

I HEARD SUPERVISOR DE SERPAS QUESTION EARLIER ABOUT WHERE ARE THESE PEOPLE GONNA GO.

WE ARE CLOSELY PARTNERING WITH KAISER TO TAKE ADVANTAGE OF THE OPEN ENROLLMENT PERIOD COMING UP AS A SUPPORT FOR OUR UIS POPULATION AND RESIDENTS IN THE COMMUNITY, AS WELL AS PARTNERING WITH THE PAJARO VALLEY COLLABORATIVE IN THAT EFFORT.

SO THAT IS ONE STRATEGY THAT WE ARE EXPLORING.

THE OTHER STRATEGY THAT WE'RE DUE TO YOU WILL SEE IN FRONT OF YOU SOON IS IN THESE CONVERSATIONS WITH HR1 AND STATE POLICY IMPACTS IMPACTING OUR HEALTHCARE SYSTEM AND CHANGING THE SERVICE DELIVERY.

ONE THING THAT COUNTY HEALTH SERVICES AGENCY DOES HAVE IS ACCESS TO MEDICAL CARE AGREEMENTS.

AND WE WON'T GO INTO DETAIL ABOUT THAT HERE TODAY, BUT THESE ARE ESSENTIALLY AGREEMENTS, UNIQUE AGREEMENTS TO SANTA CRUZ COUNTY.

THERE'S NO OTHER AGREEMENTS LIKE THIS IN THE STATE.

AND THEY WERE REALLY BORN OUT OF THE SPIRIT OF COLLABORATION AND THE RECOGNITION THAT WE ALL NEED TO PARTNER TOGETHER TO ENSURE THAT EVERYONE HAS ACCESS TO HEALTHCARE IN OUR COUNTY.

AND IF YOU'RE A HEALTHCARE SYSTEM IN OUR COUNTY, THAT YOU ARE COMMITTED TO THAT MISSION.

WE ARE LOOKING AT MODERNIZING THESE AGREEMENTS, IN THE CONTEXT OF THE HR1 AND STATE POLICY IMPACTS.

SOME OF THE PRELIMINARY STRATEGIES THAT HAVE BEEN DISCUSSED ARE STRATEGIES TO ENSURE OUR EMERGENCY ROOMS AND OUR HOSPITALS REMAIN OPERATIONAL.

ENSURING THAT EVERYONE, EVERY COMMUNITY MEMBER STILL HAS ACCESS TO PRIMARY CARE, AND UNDERSTANDING THAT THERE WILL BE REAL FISCAL CHALLENGES TO THAT GOAL.

AND ALSO CLOSING THE GAP FOR SPECIALTY CARE NEEDS.

SO ONE OF THE THINGS THAT YOU'LL SEE THAT IS TETHERED TO MEDICRUZ IS THE IMPACT OF SPECIALTY CARE COSTS.

SO, FOR EXAMPLE IF YOU LOOK ACROSS...

IF YOU LOOK ACROSS OUR FISCAL YEARS, '24 AND '24/'25, YOU'LL SEE THAT OUR SPECIALTY CARE COSTS ARE ROUGHLY 1.5 MILLION.

HOWEVER, THE NUMBER OF PATIENTS SERVED VARY.

SO ONE YEAR WE HAD 43 PATIENTS, THE OTHER YEAR WE HAD 173.

SO IT REALLY IS DEPENDENT UPON THE MEDICAL CONDITION THAT THE PATIENT COMES TO US WITH.

ONE MORE THING ON THE STAKEHOLDERS.

WE ARE PLANNING TO CONVENE IN PERSON ON A MONTHLY BASIS AND FOR THE HEALTH EQUITY OFFICE AND THE HEALTH SERVICES AGENCY TO BE THE CONVENER.

WE GREATLY APPRECIATE THAT OUR PARTNER HEALTH IMPROVEMENT PARTNERSHIP WAS AT THE TABLE TODAY FOR THIS CRITICAL DISCUSSION AND WE ARE COMMITTED TO CONTINUING TO INCLUDE THEM AS A STAKEHOLDER.

THE OTHER THING I HEARD SUPERVISOR CUMMING SAY EARLIER THIS MORNING WAS WHAT CAN THE COMMUNITY DO? RIGHT? FROM, FROM WHAT I SEE AND FROM MY PAST WORK, BEING LIKE AN EQUITY PUBLIC HEALTH CONSULTANT THROUGHOUT RURAL AREAS AND URBAN AREAS IS WE WILL NEED SUPPORT FROM OUR PHILANTHROPY PARTNERS.

SO THINKING ABOUT ENGAGEMENT THERE MIGHT BE HELPFUL.

THIS IS OUR SPECIFIC PLAN AND TIMELINE FOR MEDICRUZ ASSESSMENT SO, AS YOU SAW EARLIER THIS MORNING, A LOT OF THOSE HR1 IMPACTS FOR, TO OUR HEALTHCARE SYSTEM IN PARTICULAR WON'T QUITE TAKE EFFECT RIGHT NOW.

SOME OF THEM ARE TAKING EFFECT, BUT FOR MEDICRUZ,

[04:05:04]

WE DON'T REALLY EXPECT OUR ENROLLMENTS TO RISE SUDDENLY OR CONTINUE LIKE UNTIL MAYBE THE END OF QUARTER 2 AT THE EARLIEST OR MORE AROUND QUARTER 4 AS THE STATE MEDICAL CHANGES TAKE EFFECT.

SO REALLY WHAT WE'RE... OUR, OUR PROPOSAL TO YOU TODAY IS THAT WE CONTINUE TO CLOSELY MONITOR DIFFERENT METRICS FOR MEDICRUZ.

SO LOOKING AT OUR ENROLLMENT TRENDS.

WHAT ARE OUR CLIENT REFERRALS LOOKING LIKE.

WHAT ARE THE APPROVALS AND DENIALS OF THOSE REFERRALS, AND ALSO OUR ACTUAL EXPENDITURES AND OUR REVENUES COMING IN ON A QUARTERLY BASIS.

OF COURSE IF THERE WERE TO BE SOME KIND OF UNPREDICTABLE EVENT THAT HAPPENED THAT WOULD CHANGE THAT PLAN, WE WOULD OF COURSE COME TO, BACK TO THE BOARD EARLIER.

BUT IT'S, IT'S OUR PLAN TO COME BACK, DURING THE BUDGET HEARING, INITIAL BUDGET HEARING TO PROVIDE AN UPDATE AND KIND OF LOOK FORWARD TO FISCAL YEAR '26/'27.

- AND SO THAT CONCLUDES OUR PRESENTATION, AND WE ARE OPEN TO ANY QUESTIONS.

- THANK YOU FOR THE COMPREHENSIVE PRESENTATION TODAY.

IF THERE'S ANYONE FROM THE PUBLIC THAT WISHES TO ADDRESS US ON THIS ITEM, PLEASE COME UP NOW.

IS THERE ANYONE ONLINE? - I SEE NO SPEAKERS ONLINE, CHAIR.

- WITH THAT, I'LL BRING IT BACK TO THE BOARD FOR ANY COMMENTS OR QUESTIONS.

SUPERVISOR KOENIG.

- THANKS, CHAIR.

SO MY, IF I UNDERSTAND WHAT YOU'RE SAYING CORRECTLY, MEDICRUZ IS BECAUSE THE STATE MANDATE, IT'S THE, THE STATE BACKFILLS MOST OF THE COST THAT WE INCUR.

SO WHEN YOU TALK ABOUT THAT $10 MILLION, THOUGH, IS THAT MONEY THAT WE WOULD ANTICIPATE NOT GETTING BACK FROM THE STATE? IS THAT JUST LIKE KIND OF TOTAL ANNUAL COST...

- THAT WOULD BE IF...

- DEFENSE THAT THEN MAYBE WE'LL GET IT BACK SOMEDAY FROM THE STATE? I MEAN, ULTIMATELY STATE IS GOING TO BE DEALING WITH THE SAME BUDGET ISSUES WE ARE.

AND SO I IMAGINE, I MEAN, YEAH, GO AHEAD AND ELABORATE ON THAT.

- YEAH, I THINK THAT'S THAT IS IF WE WERE NOT KNOWING WHERE THE SOURCE OF FUNDING WOULD COME FROM, IF WE WERE LOOKING AT REBUILDING THIS PROGRAM USING THE BASE OF USING THE BASELINE OF PRE-ACA UTILIZATION.

AND SO EXPECTING THE UTILIZATION OF OR THE RISE OF UNCOMPENSATED CARE IN OUR COMMUNITY AND BECAUSE OF LOSS OF HEALTHCARE COVERAGE.

AND SO THIS WAS, THIS WAS A WAY TO CITE, LIKE IF WE'RE GONNA SEE THAT SIMILAR DEMAND ON OUR PROGRAM, WE'RE LOOKING AT POTENTIAL COSTS BEING AROUND THAT LEVEL.

IN TERMS OF WHERE WE WOULD GET THAT MONEY, EVERYONE, I DON'T KNOW IF THE STATE HAS A SOLUTION FOR THAT.

I KNOW THERE'S THERE HAS BEEN A LOT OF DISCUSSIONS WITH, A LOT OF ALIGNMENT BETWEEN THE HEALTH ASSOCIATIONS, THE SOCIAL, THE CWDA ASSOCIATION, CSAC TO FIGURE OUT WHAT COULD BE A GOOD SOLUTION FOR COUNTIES CONSIDERING THERE'S GONNA BE AN INCREASED DEMAND ON THIS PROGRAM.

- OKAY. THANK YOU. - AND THEN...

AND I WILL SHARE THAT.

SO EVERY, AS I MENTIONED, EVERY COUNTY IS A LITTLE BIT DIFFERENT SO SOME COUNTIES HAVE LIKE A HOSPITAL SYSTEM THAT MANAGES THEIR INDIGENT CARE PROGRAM.

OBVIOUSLY, WE DON'T HAVE THAT SYSTEM HERE.

- OKAY, SO WE HAVE A PROCESS TO REQUEST REIMBURSEMENT FROM THE STATE.

IN THEORY, WE COULD, I MEAN, WE CAN DO SO BUT HOW QUICKLY WE WOULD GET PAID BACK IS AN OPEN-ENDED QUESTION I MEAN, OKAY.

THE MOVING ON, I MEAN THE OTHER THING IS IT SEEMS LIKE EXPECTING THAT WE'RE GONNA GO TO BASELINE BASELINE IS PRETTY CONSERVATIVE, I GUESS.

I MEAN IF BASELINE WAS 700 PATIENTS OR SO IN 13, 14 I MEAN, ARE WE TALKING ABOUT LIKE 7,000 PEOPLE LOSING CARE, OR I MEAN A LOT MORE THAN THAT? I MEAN, SHOULDN'T WE BE PLANNING ON ACTUALLY A PROGRAM THAT IS MULTIPLE TIMES LARGER THAN IT WAS? - I THINK THAT'S... THAT IS WHY...

SO EVEN WHEN PEOPLE LOSE COVERAGE, WHAT WE'RE CURIOUS ABOUT IS WHAT IS GOING TO BE THE ACTUAL DEMAND ON OUR HEALTHCARE SYSTEM? BECAUSE WHEN PEOPLE LOSE COVERAGE, THAT MEANS THAT THEY MAY NOT BE LIKE, WHEN ARE THEY ACTUALLY GOING TO PRESENT TO PRIMARY CARE OR FOR A SPECIALTY CARE NEED? AND SO AT THIS POINT, WE'RE NOT AT IT.

WE'RE... WE PROVIDED A PROJECTION OF A POTENTIAL OF 10 MILLION OVER THE NEXT 3 YEARS.

WE'RE NOT AT A POSITION RIGHT NOW TO ACTUALLY

[04:10:01]

PUT THAT FORMALLY AS A RECOMMENDATION TO DIVERT ANY FUNDING.

IN THIS FISCAL YEAR, WHAT WE'RE EXPECTING TO DO IS TO BE ABLE TO UTILIZE HSA'S FUNDING.

YOU KNOW WE DO HAVE IGT AND SOME OTHER SOURCES TO COVER GAP AND JUST CLOSELY MONITOR IT BASED ON THE UTILIZATION PATTERNS AND TO SEE WHAT MAKES SENSE TO FUND.

THE OTHER PIECE TO CONSIDER IS LIKE, IS DO WE...

ARE WE REALLY LOOKING AT A SCALING UP OF THE PROGRAM TO MEET DEMAND, OR ARE WE LOOKING AT A SCALING DOWN TO MEET OUR RESOURCES? SO THAT IS A ANOTHER QUESTION THAT WE WILL BE PRESENTING AS TALKING ABOUT AS A COMMUNITY AND A DECISION POINT THAT WILL BE PRESENTED TO THIS BOARD, YOU KNOW, AT SOME POINT BASED ON THE TRAJECTORY OF UNCOMPENSATED CARE.

- OKAY, ONE ONE LAST QUESTION.

IT SEEMED LIKE ABOUT 25% OF ALL THE MEDICRUZ EXPENDITURES WERE ACTUALLY LIKE SOME KIND OF CLAIM BY THE HOSPITALS AGAINST YOU KNOW, FOR UNCOMPENSATED CARE.

DID I GET THAT RIGHT? AND 20% FOR ONE THING, AND THEN I THINK FOR ERS AND THEN 6% FOR OTHER LIKE FOLLOW-UP DOCTOR CARE.

WOULDN'T WE EXPECT THAT TO GROW IF THERE'S JUST MORE PEOPLE WHO ARE UNINSURED? I MEAN, COULDN'T THAT EAT UP THE WHOLE PROGRAM? - SO FOR THE EMS FUNDING, THE MADDIE FUNDING, IT'S SIMILAR TO REALIGNMENT.

IT'S TIED TO LIKE VEHICLE FINES AND FEES.

SO, DEPENDING ON HOW THE ECONOMY IS PERFORMING, THAT WOULD IMPACT THAT FUND AND THAT ALLOCATION THAT WE GET.

- OKAY, THANKS.

- SUPERVISOR MARTINEZ.

THANK YOU FOR STARTING THE CONVERSATION ABOUT SOMETHING THAT COULD BE, IS CRITICALLY IMPORTANT AND COULD LEAD TO SOME PRETTY JUST SIGNIFICANT DECISIONS THAT WILL COME BEFORE THE BOARD.

THIS MORNING WE HEARD ABOUT, YOU KNOW, FOOD AND COVERAGE AND HEALTH CARE.

AND TO NOW WE'RE HEARING ABOUT MEDICRUZ.

AND LATER WE'LL HEAR ABOUT HOMELESSNESS.

AND ALL OF THESE WILL COME TO A HEAD WHEN WE ARE MAKING COMMUNITY-WIDE DECISIONS ABOUT WHAT OUR COMMUNITY-WIDE PRIORITIES ARE.

SO IT'S REALLY HELPFUL TO HAVE THIS INFORMATION AND THIS CONTENT AS WE'RE STARTING TO WRAP OUR HEADS AROUND THE NEW REALITY.

SO, SO THANK YOU FOR BRINGING THAT.

I HAD ONE KIND OF TECHNICAL QUESTION, A COUPLE OF TECHNICAL QUESTIONS.

ONE, I THINK I HEARD YOU SAY THAT MEDICRUZ, FOLKS CAN USE MEDICRUZ AT THE, AT OUR LOCAL COUNTY CLINIC.

CAN YOU JUST CLARIFY WHAT YOU MEANT BY THAT? - YES, SO WE DO UTILIZE MEDICRUZ TO COVER UNCOMPENSATED CARE AT OUR FQHCS, OUR 3 FQHCS.

- BEING OUR COUNTY CLINIC AS WELL AS SANTA CRUZ COMMUNITY HEALTH AND SALUD PARA LA GENTE? - NO, SO JUST THE THE COUNTY RUN CLINIC. - IT'S THE COUNTY CLINICS. OKAY.

OKAY, AND THEN HELP ME UNDERSTAND WHAT THE STATE MANDATE IS FOR COVERING THIS INDIGENT, MEDICAL INDIGENT COSTS? LIKE, DO OTHER COUNTIES HAVE A BROADER OR MORE NARROW SCOPE OF WHAT IS COVERED? IS THIS A LOCAL DECISION? OR IS IT REALLY CLEAR THESE ARE THE COSTS THAT A COUNTY MUST COVER? - IT'S NOT REALLY CLEAR.

SO EVERY COUNTY HAS ITS OWN SORT OF WAY OF DOING IT BASED ON THEIR RESOURCES.

WHAT IS REALLY CLEAR IS THAT THE COUNTY IS MANDATED TO HAVE SOME PROGRAM THAT COVERS INDIGENT CARE.

BUT EVERY... IF YOU... THEY'RE IN INCLUDED, IN THE BOARD MEMO IS A LINK TO A CALIFORNIA HEALTHCARE FOUNDATION REPORT ACTUALLY WAS JUST RECENTLY RELEASED.

IT HAS A GRID OF ALL OF THE COUNTY INDIGENT PROGRAMS AND THEIR VARIATIONS.

SOME COVER PRIMARY CARE, SOME ONLY COVER EMERGENCY CARE.

ALL OF THEM HAVE DIFFERENT LEVELS OF FEDERAL POVERTY, INCOME LIMITS.

SO THERE IS A WIDE VARIETY.

IN GENERAL IT DOES COVER... IT DOES, IT DOES NOT COVER BEHAVIORAL HEALTH AS I MENTIONED, BUT IT DOESN'T DIRECTLY DICTATE WHICH LIKE SPECIALTY SERVICES OR PRIMARY CARE SERVICES ARE COVERED.

- THAT'S HELPFUL, AND SINCE THIS IS, IT BECOMES LIKE COVERAGE MUCH LIKE A INSURANCE, ALMOST LIKE AN ENTITLEMENT, IS THERE A TIMELINE THAT A COUNTY MUST FOLLOW

[04:15:04]

TO MAKE CHANGES TO THEIR PROGRAM, LIKE YOU MIGHT EXPECT IF SOMEBODY WAS ELIGIBLE FOR A PROGRAM AND YOU WERE CHANGING ELIGIBILITY? OR IS IT SOMETHING THAT A BOARD COULD DECIDE LIKE IN A, YOU KNOW, IN ONE ACTION AT A BOARD MEETING? - IT'S OUR UNDERSTANDING THAT IT'S LOCALLY CONTROLLED.

SO IT'S TO THE BOARD'S DISCRETION.

I DON'T BELIEVE THERE'S A SPECIFIC TIMELINE OR PROCESS OR ANYTHING.

- OKAY, THANK YOU.

WELL, THAT'S HELPFUL BECAUSE, YOU KNOW, LIKE I SAID, THIS IS REALLY WHAT TODAY'S ABOUT IS TEEING THIS COUNTY UP FOR FUTURE DECISIONS.

AND PROBABLY IN THIS ITEM MORE THAN ANY OTHER ONE, I THINK IT'S GONNA BE CRITICALLY IMPORTANT THAT WE'RE CENTERING EQUITY INTO THOSE CONVERSATIONS.

YOU KNOW, THERE ARE GONNA BE INDIVIDUALS AND PEOPLE WHO ARE GONNA BE WORSE OFF THAN OTHERS AND PARTS OF OUR COMMUNITY THAT WILL BE COMPLETELY FALLING OUT THE BOTTOM OF THESE CRACKS IN THE SAFETY NET.

AND SO MY HOPE AS YOU PREPARE TO COME BACK TO US BEFORE BUDGET HEARINGS IS THAT YOU'RE REALLY THINKING ABOUT YOU KNOW, HEALTH EQUITY, OBVIOUSLY, POPULATION HEALTH, AND KIND OF LIKE WHERE, AS WE'RE FACING DIFFICULT DECISIONS, CAN WE MAKE SURE THAT OUR COMMITMENT TO EQUITY IS FRONT AND CENTER? AND OF COURSE, THIS WILL ALSO COME FROM SOME OF THE COMMUNITY DIALOGUES THAT WE'RE PREPARING TO HAVE LATER THIS FALL.

SO IT ALL TIES TOGETHER.

AND SO THANK YOU VERY MUCH FOR BRINGING US THIS TODAY.

- NO, NO COMMENT.

- CAN I? - YES, SUPERVISOR DE SERPA. - THANK YOU.

THANK YOU FOR COMING FORWARD.

YOU KNOW, I'M A MEDICAL SOCIAL WORKER.

SO IN MY CAREER, LOTS OF PEOPLE ON MEDICRUZ UNTIL THE EXPANSION OF THE AFFORDABLE HEALTHCARE ACT, WHICH WAS REALLY IMPORTANT, ESPECIALLY FOR HOSPITAL SYSTEMS AND AS WE KNOW, MEDI-CAL DOESN'T EVEN AT THIS POINT COVER THE COST OF CARE IN OUR LOCAL HOSPITALS, RIGHT? WHAT HAPPENS IN A HOSPITAL FAR EXCEEDS WHAT THE REIMBURSEMENT IS FROM MEDI-CAL ANYWAY.

SO NOW IT'S GOING TO, YOU KNOW, GO AWAY COMPLETELY.

SO THE PEOPLE THAT ENDED UP ON MEDICRUZ WERE PEOPLE THAT PRESENTED AT THE ER TYPICALLY WITH SOME TYPE OF A BROKEN BONE THAT NEEDED FOLLOW-UP SURGERY OR CASTING, OR MAYBE THEY HAD CANCER OR SOME KIND OF HEART ATTACK OR STROKE.

IT WAS LIKE SOMETHING SORT OF CATASTROPHIC.

SO WHAT I WORRY ABOUT IS THE ABILITY FOR THIS POPULATION NOT ONLY TO GET THEIR SPECIALTY CARE AFTERWARDS, BUT I THINK YOU GUYS SOUNDS LIKE YOU HAVE A PATHWAY FORWARD FOR THAT.

BUT WHAT ABOUT MEDICATIONS, RIGHT? BECAUSE IF YOU HAVE CONGESTIVE HEART FAILURE, IF YOU HAVE THE NEED FOR CHEMO, IF YOU HAVE, YOU KNOW, THOSE ARE THERE'S, YOU KNOW, A LOT OF CONDITIONS, CHRONIC CONDITIONS, YOU HAVE TO HAVE MEDICATION.

SO IT USED TO BE THAT WE HAD A WONDERFUL PHARMACY, OUTPATIENT PHARMACY ATTACHED TO THE HOSPITAL HERE AT DOMINICAN, AND THAT HAS SINCE CLOSED.

AND SO THE ONLY, YOU KNOW, THERE'S JUST A HANDFUL OF INDEPENDENTS LEFT.

AND, YOU KNOW, SO I'M JUST WONDERING IF YOU GUYS HAVE THOUGHT THAT THROUGH AND WHAT THE PLANS ARE.

- YES.

SO JUST TO SHARE, SUPERVISOR DE SERPA YOU KNOW, DOMINICAN HOSPITAL AND WATSONVILLE COMMUNITY HOSPITAL WERE AND HAVE BEEN KEY STAKEHOLDER PARTNERS INVOLVED IN THESE MEETINGS THAT WE'VE SHARED.

AND PHARMACY STRATEGY AND MEDICATION STRATEGY HAS CERTAINLY SURFACED IN THOSE INITIAL CONVERSATIONS AND WE'RE KEEPING AN EYE ON IT.

ALSO I DID JUST WANT TO PROVIDE A BRIEF CLARIFICATION, AROUND THE FQHC.

AND MAYBE THIS IS ALREADY COVERED, BUT THE PEOPLE CAN BE REFERRED TO MEDI-CRUZ IF THEY PRESENT IN THE ER OR THEY ARE SEEN BY THE DOMINICAN MOBILE CLINIC OR THE HEALTH SERVICES AGENCY MOBILE CLINIC, OR SAY THEY COME TO SALUD PARA LA GENTE OR SANTA CRUZ COMMUNITY HEALTH, THEY CAN STILL QUALIFY FOR MEDICRUZ IF THEY MEET ELIGIBILITY.

IT'S JUST A MATTER OF THE REFERRAL FOR MEDICRUZ HAS TO COME TO THE HSA BENEFITS TEAM AND THEN THEY GET ASSIGNED TO PRIMARY CARE, AND THEY CAN RECEIVE MEDICRUZ THAT WAY.

BUT THERE ARE MULTIPLE ENTRY POINTS.

- SO, ONE MORE, ONE FOLLOW-UP QUESTION.

SO, RIGHT NOW, DO WE HAVE A BUDGET FOR MEDICRUZ? DID I SEE SOMEWHERE IT'S LIKE $600,000 IS IN THAT ACCOUNT OR IS IT MUCH MORE THAN THAT? - IT'S 1.8 MILLION.

- 1.8, OKAY.

OKAY. THANK YOU.

[04:20:02]

- SO WE HAVE THE RECOMMENDED ACTIONS IN FRONT OF US.

IF THERE'S ANYONE BRING IT BACK TO THE BOARD FOR ENTERTAINING A MOTION.

- I'LL JUST MAKE QUICK COMMENTS.

I'M JUST REALLY GRATEFUL FOR YOU ALL TAKING YOUR TIME TODAY TO GIVE US THESE PRESENTATIONS.

I DO KNOW THAT WHILE SOME PEOPLE HAVE EXPERIENCE WITH MEDICRUZ, THERE'S A BUNCH OF PEOPLE IN THE COMMUNITY WHO PROBABLY DON'T EVEN KNOW THAT THAT EXISTS.

AND SO I THINK AGAIN WITH THE SLEW OF SERVICES THAT SOME OF WHICH WE'RE SEEING CUT, BUT THE ONES THAT EXIST THAT PEOPLE MAY NOT BE AWARE OF, I THINK IT'S REALLY GREAT THAT WE'RE HAVING THIS PRESENTATION TODAY.

AND WHILE THERE MIGHT NOT BE A WHOLE LOT OF MONEY IN THESE POTS, AT LEAST WE CAN LET PEOPLE KNOW THAT THERE ARE OTHER OPTIONS AVAILABLE AS WE CONTINUE TO MOVE FORWARD SO LOOKING FORWARD TO MONITORING THIS.

AND WITH THAT, I'LL MOVE THE RECOMMENDED ACTIONS.

- I SECOND.

- THANK YOU. WE HAVE A MOTION FROM SUPERVISOR CUMMINGS AND A SECOND FROM SUPERVISOR DE SERPA.

IF WE COULD TAKE A ROLL CALL VOTE.

- AND HERNANDEZ. - AYE.

MOTION PASSES UNANIMOUSLY.

WITH THAT, WE'LL MOVE OVER TO THE SCHEDULED ITEM FOR 1:30.

RUNNING A LITTLE BIT LATE.

[12. Conduct study session on Housing for a Healthy Santa Cruz Strategic Framework, adopt County Encampment Response Guidelines, and take related actions]

NEXT ON THE AGENDA IS ITEM NUMBER 12.

CONDUCT A STUDY SESSION ON HOUSING FOR A HEALTHY SANTA CRUZ STRATEGIC FRAMEWORK, ADOPT COUNTY ENCAMPMENT RESPONSE GUIDELINES AND TAKE ALL RELATED ACTIONS.

I'LL TURN IT OVER TO RANDY MORRIS, DIRECTOR OF HUMAN SERVICES AND ROBERT DR. ROBERT RATNER, HOUSING FOR HEALTH DIRECTOR, FOR THE PRESENTATION.

- ALL RIGHT.

GOOD AFTERNOON CHAIR HERNANDEZ MEMBERS OF THE BOARD AND THOSE WATCHING HERE IN CHAMBERS OR ONLINE.

I'M PAUSING.

ANOTHER DIFFICULT PRESENTATION.

THIS BOARD IS 5 NEW BOARD MEMBERS FROM WHEN I STARTED IN 2020.

VERY SOON AFTER I STARTED, OUR CEO CARLOS PALACIOS, ASKED THE HEALTH AND HUMAN SERVICE AGENCY TO CONSIDER STANDING UP A STANDALONE DIVISION TO HELP DO BETTER IN OUR COMMUNITY TO ADDRESS THE ISSUE OF HOMELESSNESS, BOTH PREVENTING AND TRYING TO LESSEN, IF NOT END IT.

THAT LED TO THE HIRING OF ROBERT RATNER, AND WE HAVE BEEN IN FRONT OF THIS BOARD FOR THE LAST 4 YEARS GIVING BIANNUAL REPORTS, AND THIS IS THE FIRST TIME IT'S BEEN A YEAR.

SO SUPERVISOR MARTINEZ AND DE SERPA, I'M MINDFUL OF THE WORK YOU HAVE DONE BEFORE YOU WERE ELECTED, YOU KNOW THIS WORKED VERY WELL FROM YOUR PRIOR POSITIONS.

I FEEL LIKE I NEED TO PAUSE AND JUST FIND A BALANCE BETWEEN TAKING A FEW MINUTES TO INTRODUCE THIS TOPIC BEFORE ROBERT GOES FOR A FORMAL POWERPOINT TO LOOK IN THE REARVIEW MIRROR AND SHARE WITH YOU WHAT I SEE AS THE FORMULA THAT HAS LED TO PROGRESS.

TO PEOPLE IN THE COMMUNITY WHO, LIKE US, CARE ABOUT THIS PROGRESS DOES NOT MEAN THERE ARE NOT A LOT OF PEOPLE STILL SUFFERING WITHOUT A PLACE TO SLEEP AT NIGHT.

SO I WANT TO BE VERY, VERY CLEAR ABOUT THAT.

BUT WE HAVE MADE NOTICEABLE PROGRESS.

AND IN THE TIME WE'VE HAD THIS OFFICE, WE KNOW WHY.

AND THE ISSUE IS, HOW DO WE SCALE IT? BUT WE'RE AT AN INFLECTION POINT WHERE AS YOU HEARD THIS MORNING HR1 AND YOU'RE GOING TO HEAR MORE TODAY FROM US, THE FORMULA THAT HAS LED TO THE SUCCESS IS ABOUT TO BE DISMANTLED SO WE NEED TO SHARE WHAT THE SUCCESS HAS BEEN AND THEN BE CANDID ABOUT WHAT NOT TOMORROW BUT WHAT TODAY IS ALREADY BEING UNRAVELED SO THAT WE CAN PREPARE YOU AS OUR BOARD AND THE COMMUNITY TO BE AWARE OF WHAT IS LIKELY GOING TO HAPPEN BARRING AN INTERVENTION.

I WANT TO TELL YOU THERE ARE 3 PILLARS OF THE SUCCESS.

THE FIRST ONE, I AM GOING TO VIOLATE DEPARTMENT HEAD PROTOCOL BECAUSE I AM GOING TO SAY SOMETHING ABOUT MY CEO, CARLOS PALACIOS, WITHOUT HIM EVEN KNOWING I'M GOING TO SAY THIS.

IF YOU ARE DISAPPOINTED IN THIS CHAIR HERNANDEZ GAVE ME PERMISSION TO DO THIS, SO MAYBE WE CAN ALL THREE TALK.

I ASKED CHAIR HERNANDEZ IF HE WOULD MIND ME BEING THAT PERSONAL.

CARLOS HIRED ME, AND IN MY INTERVIEW, HE SAID I REALLY NEED TO FIGURE OUT A WAY TO DO BETTER BY THE UNSHELTERED IN THIS COMMUNITY.

I THINK THE COUNTY NEEDS TO DO MORE.

AND I ACTUALLY THINK HEALTH AND HUMAN SERVICES HAVE A ROLE IN THIS.

IF I HIRE YOU, WHAT WOULD YOU THINK IF YOU STOOD UP A HOMELESS OFFICE? AND THIS WAS CLEARLY A PASS FAIL QUESTION.

I MUST HAVE PASSED.

HE HIRED ME.

AND CARLOS, I CANNOT UNDERLINE HOW MUCH YOUR LEADERSHIP IS BEHIND EVERYTHING THAT WE ARE GOING TO PRESENT.

AND THIS BEING YOUR LAST BOARD HEARING BEFORE YOU RETIRE I WOULD BE REMISS IF I DIDN'T TAKE A MINUTE TO SAY AS A DEPARTMENT HEAD AND A DIVISION DIRECTOR WHO OFTEN ARE IN FRONT OF YOU, THE WORK CARLOS HAS DONE BEHIND THE CURTAINS QUIETLY IS WHY THIS DIVISION EXISTS UP TO AND INCLUDING, I THINK MY THIRD SUPERVISION MEETING WITH CARLOS WHEN HE MENTIONED EARLIER IN THE HR1 PRESENTATION, WE WENT ON FURLOUGH.

WE HAD NET COUNTY COST REDUCTIONS.

AND I SAID, CARLOS, I ASSUME THIS MEANS WE'RE PUTTING A PAUSE

[04:25:02]

ON STANDING UP THE HOMELESS OFFICE.

AND CARLOS SAID WITH GREAT HEART AND CLARITY, NO, I NEED TO CONFIRM WITH THE BOARD MEMBERS THAT THEY SUPPORT THIS BECAUSE THE OPTICS DON'T LOOK GOOD, BUT WE CAN'T.

THERE'S NEVER GOING TO BE A GOOD TIME.

HE GOT BACK TO ME IN A WEEK AND SAID PROCEED WITH HIRING AND STAND UP THIS OFFICE THAT LED TO THE HIRING OF ROBERT CARLOS WITHOUT YOU AND THE MANY THINGS THAT HAVE HAPPENED THE LAST FOUR YEARS.

SO PLEASE IN HONOR OF YOU JUST ONE OF MANY AS YOU GET READY TO RETIRE.

THANK YOU FOR CARING SO MUCH AND SUPPORTING US.

THE SECOND.

AND I DO CHAIR HERNANDEZ.

WE AGREED I WOULD SAY THAT.

SO ANYHOW WANTED TO DO THAT.

THE SECOND I ACTUALLY WANT TO SAY THIS TO YOU AS A NEW BOARD FROM WHEN I STARTED SOME OF YOU HAVE BEEN HERE A COUPLE YEARS.

I THINK IT IS REALLY IMPORTANT THAT WE IDENTIFY THE PHRASE POLITICAL DISCIPLINE.

ALMOST EVERY CITY COUNCIL, EVERY BOARD MEETING IN THE STATE OF CALIFORNIA PEOPLE RUN TO BE ELECTED ON SOLVING HOMELESSNESS.

AND THEN WHEN WE END UP IN FRONT OF YOU AS STAFF AND TALK TO ELECTED OFFICIALS THE PRESSURES YOU FACE AS ELECTED OFFICIALS AT CITY AND COUNTY ARE RELENTLESS.

AND SO WHAT CAN HAPPEN WITHOUT POLITICAL DISCIPLINE, WITHOUT A STRATEGIC PLAN IS WE DON'T MAKE CAREFUL DECISIONS THAT ARE ROOTED IN MAKING SURE WHEN WE HELP PEOPLE, WE HELP THEM IN A WAY THAT HELPS THEM GET HOUSING.

BECAUSE WHEN WE DON'T DO THAT AND WE DON'T HAVE POLITICAL DISCIPLINE WE END UP IN A SITUATION WHERE WE'RE JUST THROWING MONEY AT THINGS, RESPONDING TO VISIBLE CRISES AND THE MONEY'S GONE AND PEOPLE ARE STILL UNSHELTERED.

I WANNA SAY THAT POLITICAL DISCIPLINE DOES NOT COME FROM STAFF THAT COMES FROM PARTNERSHIP WITH YOU AS ELECTED.

THANK YOU FOR YOUR ROLE IN HELPING SUPPORT US, INCLUDING HARD QUESTIONS AND NOT MAJORITY VOTE SOMETIMES, BECAUSE THESE ARE NOT EASY CONVERSATIONS.

I'M GONNA END WITH, WE HAVE TO TALK ABOUT IT.

THERE ARE FOUR FUNDING STREAMS THAT HAVE BEEN BRAIDED TOGETHER OVER THE LAST FOUR YEARS, AND EVERY ONE OF THEM HAS A CHALLENGE.

THESE FOUR FUNDING STREAMS IF SCALED WOULD SOLVE HOMELESSNESS IN CALIFORNIA, IN SANTA CRUZ COUNTY.

WE JUST DON'T HAVE ENOUGH OF THEM, BUT I WANT TO MAKE SURE YOU UNDERSTAND THIS BECAUSE THIS THEN PIVOTS TO WHERE WE ARE TODAY AND WHAT'S COMING.

NUMBER ONE, AND THIS GETS BACK TO CARLOS AND THE BOARD, GENERAL FUND.

IN THE FOUR PLUS YEARS SINCE WE'VE STOOD UP THIS OFFICE AND I THINK FIVE BUDGET CYCLES, IF THE COMMUNITY DOESN'T KNOW IT THE CAO BUDGET OFFICER SURE DOES, $3.4 MILLION OF GENERAL FUND HAS BEEN ADDED, INCLUDING THE HIRING OF ROBERT IT WENT FROM TWO ANALYSTS TO 20 STAFF.

AND AS I SAID AT THE BUDGET HEARINGS, THAT $3.4 MILLION HAS RETURNED NINEFOLD, NINEFOLD RETURN ON INVESTMENT IN TERMS OF HAVING AN INFRASTRUCTURE TO GET FEDERAL AND STATE GRANTS.

AND ROBERT'S POSITION AND HIS STAFF POSITION ARE ALL LEVERAGED FEDERAL AND STATE FUNDING THROUGH A CLAIM TO OFFSET THE COST OF THAT GENERAL FUND.

NUMBER TWO, WE TALKED ABOUT IT AS ONE OF THE TWO BIG ISSUES THIS MORNING IN THEIR HR1, MEDI-CAL.

MEDI-CAL IS THE FUNDING SOURCE FOR SERVICES.

MANY PEOPLE BEFORE 2014 WHO WERE UNSHELTERED WERE INELIGIBLE FOR MEDI-CAL.

THERE WERE NOT SO MANY WAIVERS IN CALIFORNIA, AND CALIFORNIA'S PROGRESSIVE NATURE HAS BUILT AN OPPORTUNITY WHICH WE HAVE TAKEN ADVANTAGE OF AND LAYERED INTO MOST OF OUR PROGRAMS THAT MEDI-CAL IS THE BILLING SOURCE TO FUND SERVICES TO PEOPLE WE'RE HELPING.

AND THE LAST TWO ARE THE ONES WHERE THIS GETS VERY DIFFICULT.

ONE-TIME STATE GRANTS.

AND I'M GOING TO BE VERY DIRECT AND I'M GOING TO PAUSE TO MAKE SURE YOU REALLY HEAR THIS AND THE COMMUNITY HEAR THIS.

WE HAVE A COMBINATION OF FEDERAL AND STATE GRANTS.

I'M GONNA FOCUS ON STATE GRANTS BECAUSE FEDERAL WHO KNOWS WHAT'S COMING, BUT LIKELY AS BAD OR MORE.

THE ONE TIME STATE GRANTS THAT EVERYONE HAS BEEN MADE PUBLIC AND YOUR BOARD HAS APPROVED.

THEY HAVE A TERMINATION DATE AND AS WE LOOK FORWARD 50 TO 75% OF THE ONE TIME STATE GRANTS WE HAVE ARE SET TO EXPIRE WITH NO BACKFILL.

SO I JUST WANT TO BE CLEAR, ONE OF THE MAJOR BRAIDED FUNDING STREAMS THAT WE'VE HAD TO HELP EFFECTUATE CHANGE AND MAKE THE PROGRESS ROBERT WILL ARTICULATE LOOKING IN THE REARVIEW MIRROR, ONE TIME, EVERYTHING ELSE IN HUMAN SERVICES WITH RARE EXCEPTION IS AN ONGOING REVENUE STREAM THAT KEEPS RUNNING PROGRAMS THAT MAY BE ADJUST UP AND DOWN.

EVERYTHING ROBERT'S RUN IS ONE TIME STATE GRANTS AND WE KNEW THERE WOULD BE A CLIFF AND THE CLIFF IS NOW.

THE LAST ONE, I HAVE BEEN IN THE FIELD 35 YEARS.

BEFORE CARLOS HIRED ME AND WE STOOD UP TO THE HOMELESS DIVISION, I'VE NEVER BEEN AN ADMINISTRATOR OF OUR HOMELESS OFFICE.

I'VE BEEN A PROFESSIONAL IN THE FIELD FOR VERY LONG TIME.

AND I WANT TO END WITH THE MOST IMPORTANT PIECE OF THE EQUATION THAT I DID NOT UNDERSTAND UNTIL WE HIRED ROBERT AND THIS OFFICE WAS STOOD UP.

UNLESS WE NAME THE TRUE CRISIS THAT WE'RE CONFRONTED, AND THAT IS LACK OF AFFORDABLE HOUSING, YOU CAN THROW ALL KINDS OF MONEY AT ALL KINDS OF THINGS, BUT SOMEBODY CANNOT FIND A WAY TO PAY FOR THE ROOF OVER THEIR HEAD, WHICH IS USUALLY RENT.

WHO IS GONNA BRIDGE THE GAP BETWEEN INCOME? IF WE GET PEOPLE ON SSI, IT'S LESS THAN A THOUSAND A MONTH.

[04:30:03]

THEY HAVE A MINIMUM WAGE JOB, IT'S LESS THAN 2,000 A MONTH.

YOU CANNOT AFFORD MARKET RATE RENT IN CALIFORNIA, PARTICULARLY SANTA CRUZ COUNTY.

IF YOU DO NOT HAVE A WAY TO PAY TO SUPPORT PEOPLE, TO PAY FOR THEIR ROOF OVER THEIR HEAD, THAT'S ALL A LOT OF STUFF AROUND THE EDGES.

SO I WANNA THANK THE SANTA CRUZ HOUSING AUTHORITY JENNA PANETTA, THE BOARD BEHIND THEM FOR THE PARTNERSHIP SHE AND ROBERT HAVE DEVELOPED BECAUSE IT IS HOUSING VOUCHERS THAT HAVE BEEN WOVEN INTO THIS BRAIDED FUNDING STREAM THAT HAVE BEEN THE REASON.

I KNOW A LOT OF PEOPLE THINK THAT THEY SOLVED HOMELESSNESS FOR THIS AND THAT OTHER, HOUSING VOUCHERS.

THIS IS, I'M GONNA REALLY PAUSE TO MAKE SURE YOU HEAR THIS.

OUR CALCULATIONS, DEPENDING ON THE FEDERAL SHUTDOWN AND WHAT APPROPRIATIONS THE FEDS DO WITH THE TERMINATION OF THE PANDEMIC RELATED EMERGENCY HOUSING VOUCHERS COUPLED WITH MULTIPLE OTHER FUNDING STREAMS THAT FUND HOUSING VOUCHERS.

WE ARE LOOKING AT SOMEWHERE BETWEEN 550 TO 800 HOUSING VOUCHERS BEING TERMINATED BY DECEMBER OF 2026.

THAT'S NOT A LOCAL ACTION.

SO ON TOP OF THE MEDICRUZ DISCUSSION ON TOP OF THE HR1 DISCUSSION, THE STATE FUNDING IS BEING CUT IN HALF.

THE HOUSING VOUCHERS, BARRING SOME INTERVENTION AT THE FEDERAL LEVEL, ARE BEING TERMINATED EFFECTIVE DECEMBER 26 AT LEAST 550 ON UP TO 800.

THOSE PEOPLE WILL NOT HAVE A WAY TO PAY FOR THE ROOF OVER THEIR HEAD WHEN THOSE HOUSING VOUCHERS GO.

WE HAVE MADE PROGRESS.

I THINK WE SHOULD CELEBRATE WE'VE MADE PROGRESS.

MANY COUNTIES HAVE MADE PROGRESS.

THE FORMULA I [INAUDIBLE] IS THE REASON I BELIEVE WE'VE MADE PROGRESS AND THOSE FOUR FUNDING STREAMS ARE ALL AT RISK.

AND SO WITH THAT SOMBER COMMENT, ROBERT IS GOING TO WALK THROUGH WHAT WE'VE DONE, WHERE WE'RE ARE, EFFORTS TO MITIGATE AND KIND OF LOOK FORWARD TO AN HONEST DISCUSSION WITH YOU ALL BECAUSE IT FITS INTO THE LARGER ECOSYSTEM OF WHAT'S IMPORTANT, WHAT CAN WE MITIGATE AND WHERE ARE WE GOING TO JUST HAVE TO REALIZE THESE CUTS ARE GOING TO IMPACT US IN A VERY DIFFICULT WAY.

SO I'LL TURN IT OVER TO ROBERT.

- THANK YOU, RANDY. THANK YOU, MEMBERS OF THE BOARD.

AND I WAS HOPING THAT THE DAY WOULD BE BUILDING UP TO POSITIVE NEWS, BECAUSE I DO HAVE SOMETHING POSITIVE TO SHARE WITH YOU ALL THAT WE'VE MADE PROGRESS ON ADDRESSING HOMELESSNESS.

BUT AS RANDY ALLUDED TO, THERE'S BEEN A LOT OF BUILDUP AROUND FUNDING LOSSES AND CHALLENGES FACING US.

SO I'M GOING TO MIX IN SOME POSITIVE, SOME HOPEFUL MESSAGES.

BUT ALSO, WE NEED TO GO INTO WHAT WE'RE FACING WITH EYES OPEN.

THIS IS AN OVERVIEW OF WHAT I WAS HOPING TO COVER AND I ALSO WANT TO SAVE TIME FOR QUESTIONS AND DISCUSSION ON TOPICS.

SO FIRST, GOING TO GIVE AN OVERVIEW OF THE POINT IN TIME COUNT OF PEOPLE EXPERIENCING HOMELESSNESS IN THE COUNTY AND TRENDS, SOME ACCOMPLISHMENTS WE'VE MADE SINCE WE LAST REPORTED TO THE BOARD.

I WANT TO TALK ABOUT IN MORE DEPTH THAN RANDY SHARED, WHAT ARE THE PILLARS FROM MY PERSPECTIVE, AND I THINK A LOT OF PEOPLE WHO DO WORK AROUND HOW DO WE COMBINE EFFORTS TO END HOMELESSNESS? LIKE WHAT ARE THE KEY PILLARS THAT MAKE A DIFFERENCE? THIS IS WHERE WE GET INTO UNPLEASANT TERRITORY, THE FUNDING SITUATION, AND THEN OUTLINE RISK IN YOUR HEAD AND THEN GO THROUGH THE PROPOSED BOARD ACTIONS THAT ARE PART OF THE BOARD PACKET.

I WAS THINKING ABOUT THE PRESENTATION TODAY AND I OFTEN LOOK TO QUOTES FROM PEOPLE THAT ARE WISER THAN ME TO GIVE ME SOME SENSE OF DIRECTION.

SO I PULLED THIS QUOTE FROM CONFUCIUS BECAUSE WE'RE ENTERING A VERY STORMY PERIOD.

YOU CAN'T SEE IT? OH, UP HERE.

SO THE GREEN REED WHICH BENDS IN THE WIND IS STRONGER THAN THE MIGHTY OAK WHICH BREAKS IN A STORM.

SO I WOULD SAY AFTER ALL THE PRESENTATIONS I LISTENED TO TODAY IT'S VERY STORMY RIGHT NOW IN TERMS OF POLICY AND FUNDING.

AND A COUPLE OF CHARACTERISTICS ABOUT THE GREEN REED THAT I WANT TO HIGHLIGHT AS YOU THINK ABOUT ALL THESE CHALLENGES BEFORE US AT THE LOCAL LEVEL.

ONE, THE GREEN REED, THEY'RE OFTEN TOGETHER IN A GROUP.

THEY HAVE DEEP ROOTS THAT HOLD THEM GROUNDED.

AND SO WITHIN OUR HOUSING FOR HEALTHY SANTA CRUZ FRAMEWORK THAT WE'VE HAD FOR THE PAST FIVE YEARS, THERE'S SOME PILLARS OF PRINCIPLES THAT WE'VE TRIED TO ABIDE TO WHEN THE WINDS AND THE STORMS KIND OF PUSH US TO MOVE IN A DIFFERENT DIRECTION.

BUT THEY BEND.

SO THAT MEANS WE HAVE TO BE FLEXIBLE AND WE HAVE TO BE OPEN TO CREATIVE IDEAS, WHETHER THAT'S NEIGHBORHOOD GARDENS OR FINDING NEW WAYS TO SHARE HOUSING OR FINDING NEW WAYS TO BRING IN MONEY TO HELP PEOPLE.

SO I ENCOURAGE US TO THINK ABOUT BEING REEDS RATHER THAN MIGHTY OAKS.

WE'VE GOT TO BEND AND WE GOT TO HOLD ONTO OUR PRINCIPLES AND OUR ROOTS AS WE FACE THESE CHALLENGES IN FRONT OF US.

POINT TIME COUNT.

SO THIS IS GOOD NEWS, I THINK.

SINCE 2020 IN SANTA CRUZ COUNTY, WE'VE SEEN A GENERAL POSITIVE TREND.

THIS IS AN ANNUAL SURVEY WE DO OF PEOPLE WHO ARE EXPERIENCING HOMELESSNESS.

WE LOOK AT DATA FROM WHAT'S CALLED THE HOMELESS MANAGEMENT INFORMATION SYSTEM.

WE MOBILIZE ABOUT 100 VOLUNTEERS TO VISUALLY COUNT THE NUMBER OF UNSHELTERED PEOPLE.

AND WE'VE SEEN THE LOWEST COUNT EVER IN 2025, JUST OVER 1,400.

THAT'S THE BLUE LINE.

THE ORANGE LINE COMES FROM OUR DATA SYSTEM,

[04:35:02]

ALL THE PROGRAMS THAT WE ARE INVOLVED WITH SUPPORTING THAT HELP PEOPLE EXPERIENCING ARE AT RISK OF HOMELESSNESS.

AND GENERALLY YOU CAN SEE THE NUMBERS THAT ARE EXITING THE HOUSING HAS BEEN GOING UP.

SO THERE'S A SIGN ON THE DATA SIDE THAT OUR EFFORTS ARE RESULTING IN MORE PEOPLE EXITING TO PERMANENT HOUSING.

AND OUR ANNUAL SURVEY IS SHOWING THE NUMBERS ARE GOING DOWN.

THE 2025 ORANGE BULLET I WANT TO SHOW YOU THAT THAT NUMBER WENT DOWN A LITTLE BIT AND I HAVE A COUPLE OF HYPOTHESES.

ONE IS THE ONE TIME MONEY THAT RANDY MENTIONED.

IT HAS BEEN DRYING UP, SO OUR ABILITY TO HELP MORE PEOPLE IS CONTINGENT UPON THE RESOURCE COMMITMENTS.

THE OTHER THING THAT I THINK IS HAPPENING AND THIS WAS ALLUDED TO EARLIER, I THINK SUPERVISOR MARTINEZ, YOU ASKED A QUESTION ABOUT THIS.

SO THERE'S EFFORTS IN THE HOUSING SPACE IN THE MEDICAID OR MEDI-CAL WORLD WHERE PROVIDERS ARE LEVERAGING MONEY AND HOUSING DEPOSITS.

THAT DATA DOESN'T SHOW UP HERE, BUT I THINK IT IN THE ORANGE LINE, BUT I THINK IT SHOWS UP IN THE BLUE LINE.

SO I THINK SOME OF THE INVESTMENTS ON THE MEDI-CAL SIDE AROUND HOUSING SERVICES AND HEALTHCARE MANAGEMENT IS HELPING REDUCE HOMELESSNESS.

AND THOSE ARE AT RISK AS WE TALKED ABOUT EARLIER.

SO ACCOMPLISHMENTS, THINGS THAT ARE A REFLECTION OF ALL THE WORK WE'VE BEEN DOING IN THE PAST YEAR.

THIS BOARD APPROVED OF I THINK A REALLY INNOVATIVE PROGRAM TO FOCUS ON PREVENTING HOMELESSNESS IN SOUTH COUNTY.

WE HAD SEEN SOME DATA A COUPLE YEARS AGO THAT HOMELESSNESS WAS SIGNIFICANTLY IN THE RISE IN THE SOUTHERN PART OF THE COUNTY AND THE BOARD COMMITTED TO DEDICATE FUNDS TO START A NEW PROGRAM.

COMMUNITY ACTION BOARD WILL BE OPERATING THAT PROGRAM.

I'M REALLY EXCITED TO BE A PART OF SUPPORTING THAT EFFORT.

AND THEY'RE ALSO NETWORKING WITH OTHER COUNTIES AND NONPROFITS AROUND THE STATE TO LEARN SOME BEST PRACTICES SO WE CAN HELP PEOPLE KEEP THEIR HOUSING.

PREVENTION IS REALLY CRITICAL.

WE HAD A LOT OF GYMNASTICS AND NEGOTIATIONS WITH STATE OFFICIALS TO GET AN ADDITIONAL $4 MILLION TO SUPPORT THE HARVEY WEST STUDIOS HOUSING MATTERS PROJECT TO HELP SUBSIDIZE THE RENTS FOR PEOPLE THAT ARE MOVING IN.

WE HAVE BEEN REALLY WORKING MORE CLOSELY.

H4H IS OUR DIVISION, BEHAVIORAL HEALTH COLLABORATION.

SO WE'RE WORKING ON A WHOLE RANGE OF THINGS FROM BEHAVIORAL HEALTH BRIDGE HOUSING FUNDING TO SUPPORTING LICENSE CARE FACILITIES AND HELPING SUPPORT THE SHIFT THAT IS MOVING FORWARD WITH PROPOSITION 1 IN THE BEHAVIORAL HEALTH SERVICES ACT REQUIRING OUR BEHAVIORAL HEALTH DEPARTMENT TO INVEST MORE IN HOUSING.

SO I SEE OUR FUTURE AHEAD AS TIGHTER AND TIGHTER PARTNERSHIPS WITH BEHAVIORAL HEALTH.

WE HAVE STARTED CONSTRUCTION OF LOW BARRIER NAVIGATION CENTERS.

IF YOU GO OUT IN THE PARKING LOT AFTER THE HEARING, YOU CAN JUST LOOK OVER TO A NEARBY CHURCH AND SEE THE MODULAR UNITS FOR OUR PROJECT IN WATSONVILLE, RECURSO DE FUERZA.

WE'VE STARTED CONSTRUCTION AT A PROJECT ON SOQUEL NEAR THE TELECARE PSYCHIATRIC HEALTH FACILITY.

AND I WANT TO POINT OUT THAT GETTING TO THE POINT WHERE WE ACTUALLY ARE BUILDING THINGS, THERE WAS SO MUCH WORK FROM SO MANY PEOPLE TO BRAID ALL THE DIFFERENT MONEY, TO APPLY FOR ALL THE DIFFERENT GRANTS AND PERMITS.

IT'S TAKEN US TWO TO THREE YEARS, DEPENDING ON THE PROJECT, TO GET TO THIS POINT WHERE THINGS ARE ACTUALLY GETTING BUILT.

WE BUILT THOSE PLANS ON A COUPLE OF ASSUMPTIONS.

ONE, THE STATE WOULD CONTINUE TO PROVIDE US WITH ABOUT THE SAME AMOUNT OF STATE FUNDING, WHICH IS NOT THE CASE.

TWO, THERE WOULDN'T BE ANY MAJOR CHANGES IN FEDERAL FUNDING AROUND HOUSING AND HOMELESSNESS, WHICH IS NOT THE CASE.

THREE, THE MEDI-CAL HOUSING INVESTMENTS THAT HAVE COME THROUGH CALAIM WOULD CONTINUE IN SOME FASHION, ALSO AT JEOPARDY.

SO IT'S REALLY IMPORTANT, I THINK, FOR YOU ALL TO KNOW, WE BUILT NEW PROJECTS ON SOME ASSUMPTIONS THAT ARE TURNING OUT NOT TO BE TRUE.

SO WE'RE HAVE TO COME UP WITH SOME CREATIVE WAYS TO CONTINUE TO SUPPORT THOSE PROGRAMS AFTER THEY'RE BUILT.

THE SAME IS TRUE FOR OUR YOUTH TRANSITIONAL HOUSING PROJECT WE HAVE IN FREEDOM.

ALL OF THOSE PROJECTS, I AM CONFIDENT, UNLESS THERE'S SOME MAJOR SHIFTS THAT I DON'T THINK ARE LIKELY.

THERE'LL BE TWO AND A HALF YEARS WORTH OF FUNDING TO KEEP THOSE PROGRAMS OPERATIONAL.

BUT AFTER THAT, WE'RE GONNA REALLY STRUGGLE, WITH WHAT I SEE IN OUR FUTURE IN TERMS OF FUNDING.

WE'VE DONE A LOT OF REALLY INNOVATIVE THINGS, WORKING WITH UNITED WAY AND AMAZING NONPROFITS IN OUR COMMUNITY THAT ARE ESSENTIALLY VOLUNTEERING TO BE PART OF A SYSTEM TO CONNECT WITH PEOPLE WHO ARE EXPERIENCING HOMELESSNESS AND BE A PART OF WHAT WE CALL A COORDINATED ENTRY PROCESS, STANDARDIZING WITH THE WAY WE ASSESS PEOPLE'S NEEDS AND MATCH THEM TO RESOURCES.

A LOT OF OUR STAFF WHO SUPPORT THAT EFFORT ARE BEING RECOGNIZED AT A NATIONAL LEVEL BECAUSE WE'VE DONE SOME REALLY CREATIVE THINGS.

SO I APPRECIATE THE SUPPORT FROM THE BOARD IN THAT AREA.

REALLY EXCITED THAT WE'RE PARTNERING WITH COMMUNITY DEVELOPMENT INFRASTRUCTURE DEPARTMENT IN THE COUNTY TO SUPPORT BECOMING A STATE PRO HOUSING DESIGNATED ENTITY HERE.

THAT'LL HELP US SECURE MORE STATE FUNDS FOR MORE HOUSING OPPORTUNITIES.

AND WE WANNA SUPPORT CDI IN THAT EFFORT GOING FORWARD.

I'VE BOLDED THREE THINGS THAT ARE ACCOMPLISHMENTS BUT ARE ALSO RELATED TO RECOMMENDED ACTIONS.

[04:40:01]

SO AT A RECENT BOARD MEETING, THE BOARD APPROVED OF A COLLABORATION TO HELP HOUSING MATTER SECURE THE SANTA CRUZ INN, THAT ACQUISITION WENT FORWARD.

THERE'S A RECOMMENDATION LATER.

THAT'S GONNA BE HOUSING FOR PEOPLE WITH BEHAVIORAL HEALTH CONDITIONS, WHERE THEY'LL HAVE PRIVATE ACCOMMODATIONS AS TEMPORARY HOUSING.

WE'VE SECURED A LOT OF FEDERAL AND STATE FUNDING.

I'LL COME BACK OUT A LITTLE BIT LATER.

AND THEN ENCAMPMENT RESPONSE GUIDELINES, WHICH WE'VE PARTNERED WITH CDI AND OTHER COUNTY DEPARTMENTS ON DEVELOPING THESE GUIDELINES.

AND I'LL SAY MORE ABOUT THAT IN A BIT.

SO I ALLUDED TO PILLARS OF PROGRESS.

SO MY PERSONAL PERSPECTIVE, I THINK OTHERS WHO WORK IN THIS SPACE OF THINKING ABOUT HOW DO WE HELP PEOPLE TO KEEP THEIR HOMES AND EXIT HOMELESSNESS, WHAT ARE THE THINGS THAT REALLY MAKE A DIFFERENCE.

REPEATING A LOT OF WHAT RANDY SAID.

NUMBER ONE HUD.

HOMELESSNESS IS PRIMARILY A HOUSING AFFORDABILITY PROBLEM.

SO TO THE EXTENT THAT WE INVEST IN EFFORTS TO REDUCE THE COST OF HOUSING OR MAKE HOUSING MORE AFFORDABLE FOR PEOPLE, WE CAN MAKE THE MOST PROGRESS ON HOMELESSNESS.

BRAIDING MEDI-CAL RESOURCES AND THEN THE ONE-TIME FEDERAL AND STATE FUNDS.

THE BRAIDING RESOURCES HEADING IS A PILLAR OF HOW FOLKS WHO DO WORK LIKE I DO, WE HAVE TO GET MONEY FROM ALL THESE DIFFERENT PLACES AND TRY TO GET IT TO MAKE SENSE.

IT'S NOT EASY.

I'D LOVE IF IT WASN'T SO COMPLICATED AND WE HAD A SIMPLE NATIONAL HOUSING SUBSIDY PROGRAM, BUT WE DON'T.

SO WE'VE GOT TO BRAID THESE RESOURCES TO MAKE IT WORK.

SOME PRINCIPLES OF HOW WE DO OUR WORK.

THERE'S, AND I'M SOMEONE WHO LOVES SHINY NEW OBJECTS LIKE THE SQUIRREL.

WHAT'S THE NEW IDEA OUT THERE, BUT REALLY SUSTAINING AND IMPROVING WHAT WE HAVE SO THAT THERE'S STABILITY WITH THE PROGRAMS AND THE RELATIONSHIPS IS REALLY CRITICAL THAN CHASING NEW IDEAS AND NEW THINGS.

CHANGE TAKES A LONG TIME.

I ALSO LIKE SPLASHY BIG THINGS.

I LIKE TO SEE BUILDINGS GET BUILT.

BUT WHAT I'M FINDING IS JUST LITTLE GENTLE MOVES.

IF YOU ADD THEM UP OVER TIME, THAT'S HOW WE GET RESULTS.

IT'S SOMETIMES REALLY DIFFICULT FOR ME AND MY COWORKERS, BECAUSE THERE'S SO MUCH NEED AND SO MUCH DEMAND FOR THE KINDS OF SUPPORT A LOT OF OUR PROGRAMS OFFER.

IF WE TRY TO MEET THE FULL DEMAND, WE END UP RESULTING IN LOW QUALITY SERVICES.

SO THERE'S A TENSION BETWEEN THE QUALITY AND IMPACT OF OUR WORK AND HOW MUCH WE TRY TO STRETCH OURSELVES.

SO OUR DIVISION'S REALLY BEEN FOCUSING ON, ALL RIGHT, LET'S DO THIS IN A QUALITY WAY SO WE CAN GET BETTER OUTCOMES.

I THINK THAT'S BEEN A CRITICAL PART OF OUR EFFORTS.

WHENEVER WE THINK ABOUT MAKING INVESTMENTS IN A NEW PROGRAM OR SUPPORTING A PROGRAM, IS THIS CONTRIBUTING TO A PATHWAY TO SOMEONE TO GET A PERMANENT HOME? OR IS IT JUST MOVING PEOPLE AROUND OR ADDRESSING A VISIBILITY ISSUE? SO FOR US, THAT'S A CRITICAL THING TO CONSIDER.

WE ARE FOCUSING AS MUCH AS WE CAN ON STRENGTHS AND EXPLORING THE THINGS THAT ARE GOING WELL.

THE WORK IS HARD FOR THE STAFF THAT DO THIS.

PEOPLE WHO ARE EXPERIENCING HOMELESSNESS ARE ONE OF THE MOST STIGMATIZED GROUPS ON THE PLANET, THOSE IN THE UNITED STATES.

AND WE OFTEN FORGET THAT EVERY HUMAN BEING HAS A GIFT, OR OFTEN MORE THAN ONE GIFT TO GIVE TO THE WORLD.

SO WE AS A STAFF HAVE GONE THROUGH A STRENGTHS-BASED PROCESS.

WE FOCUS ON TRAINING PEOPLE ON STRENGTHS-BASED CASE MANAGEMENT SO THAT WE CAN BRING OUT THE HUMANITY IN OURSELVES AND THE PEOPLE WE'RE WORKING WITH.

COALITION BUILDING TIES TO BRAIDING RESOURCES.

WE'VE GOT TO WORK ACROSS OUR SILOS BECAUSE PEOPLE EXPERIENCING HOMELESSNESS OFTEN AREN'T GETTING WHAT THEY NEED FROM A PARTICULAR SYSTEM SO WHEN I THINK ABOUT OUR DIVISION'S WORK, IT'S LIKE, HOW DO WE GET THESE SYSTEMS TO WORK TOGETHER IN DIFFERENT WAYS OR TO BE FLEXIBLE, LIKE THOSE REEDS THAT I TALKED ABOUT.

HEARING FROM PEOPLE WHAT IT'S LIKE TO EXPERIENCE HOMELESSNESS HERE AND HOW TO GET THEIR INPUT ON WHAT CAN MAKE A DIFFERENCE.

AND THEN SUPPORTING OUR STAFF.

WE HAVE SOME OF THE HIGHEST TURNOVER RATES OF ANY HEALTH AND HUMAN SERVICES PROFESSIONAL GROUP, PEOPLE WHO WORK ON HOUSING ISSUES, BECAUSE THE FUNDING IS SO UNSTABLE AND THE WORK IS SO DIFFICULT AND ISOLATING AT TIMES.

SO WE'RE TRYING TO DO WHAT WE CAN TO SUPPORT STAFF.

FUNDING, OKAY, WE'RE GETTING INTO NOT AS PLEASANT INFORMATION.

SO THIS IS A GRAPHIC.

THAT I'M NOT GOING TO SPEND A LOT OF TIME ON, BUT THIS IS AN ATTEMPT TO SHOW YOU TWO MAIN SOURCES OF FUNDING THAT HAVE COME THROUGH OUR DIVISION.

THE BLUE IS STATE BLOCK GRANT FUNDING.

YOU CAN SEE THE PEAK WAS IN 2018.

AND THEN THE ORANGE IS HOW MUCH WE'RE GETTING FROM THE HUD CONSUMER OF CARE FUNDING SOURCE.

SO GENERALLY WHAT I HOPE YOU CAN SEE HERE IS THE BLUE IS ERRATIC AND IS GOING DOWN.

THE ORANGE HAS BEEN GROWING UP UNTIL RECENT FEDERAL POLICY SHIFTS.

SO 2025, THERE IS NO BLUE.

IN THE CURRENT STATE BUDGET THAT WAS APPROVED FOR THIS FISCAL YEAR, THERE WAS NO BLOCK GRANT MONEY SET ASIDE TO ADDRESS HOMELESSNESS.

NO MONEY SET ASIDE TO ADDRESS HOMELESSNESS.

[04:45:03]

WE DID SET ASIDE $200 MILLION FOR A SPECIAL ELECTION, BUT THE AMOUNT THAT THE STATE HAD BUDGETED HISTORICALLY IS AROUND A BILLION DOLLARS.

FOR 2026, THE STATE HAS COMMITTED TO $500 MILLION OF BLOCK GRANT FUNDING TO ADDRESS HOMELESSNESS.

SO BACK TO RANDY'S POINT, WE'RE LIVING YEAR TO YEAR WONDERING WHAT THE STATE'S GONNA DO.

I KNOW MANY OF YOU HAVE BEEN ADVOCATING FOR MORE STABLE, CONSISTENT FUNDING FROM THE STATE.

THAT'S REALLY CRITICAL.

THE ORANGE IS RADICALLY UNSTABLE AT THE MOMENT.

SO YOU'LL SEE IN 2025, THE ORANGE SHADING IS A LITTLE BIT DIFFERENT BECAUSE THE CURRENT FEDERAL ADMINISTRATION HAS BEEN PROPOSING SIGNIFICANT CHANGES TO THE GRANT AGREEMENTS AND THE EXPECTATIONS WITH THE FEDERAL MONEY TO ADDRESS HOMELESSNESS.

RIGHT NOW WE RECEIVE AROUND $7.7 MILLION A YEAR, WHICH IS ON THE GRAPH HERE AND MOST OF THAT, I THINK 85% OF IT GOES TO PERMANENT HOUSING PROGRAMS WHERE WE'RE PROVIDING RENTAL ASSISTANCE AND SOME KIND OF PERMANENT SUBSIDY.

THOSE PROGRAMS, AS OF LAST WEEK, WE'RE HELPING 290 PEOPLE.

I THINK YOU'LL SEE IN THE NEWS TONIGHT OR TOMORROW THAT THE FEDERAL GOVERNMENT IS PLANNING TO FROM HUD, RESTRICT THE AMOUNT OF THOSE DOLLARS THAT CAN GO TO PERMANENT HOUSING AND LIMIT IT TO 30% OF THE TOTAL GRANT.

AMONG OTHER EXPECTATIONS THAT WE ARE HEARING IN MY CIRCLE OF COLLEAGUES THAT HUD IS GOING TO ANNOUNCE.

WHEN THEY, THERE'S AN ANNUAL FUNDING RENEWAL CYCLE.

SO WE'LL FIND OUT IN THE NEXT COUPLE WEEKS WHAT'S GONNA BE EXPECTED.

BUT BASED ON THE TEA LEAVES, WE CAN EXPECT CUTS TO THE PERMANENT HOUSING PROGRAMS. I ALSO THINK THAT FOLKS WHO ARE IN THE, THIS KIND OF WORK ARE GONNA BE WORKING ON LAWSUITS BECAUSE WE DON'T THINK THAT THOSE PROPOSED CHANGES TO THE PROGRAM ARE CONSISTENT WITH FEDERAL LAW.

BUT ALL THAT'S GONNA MEAN SLOW DOWN, HARDER TO GET FUNDS, ET CETERA.

SO THAT THE FUNDING PICTURE'S LOOKING VERY CHALLENGING.

I WANTED TO HIGHLIGHT, AND I THINK THIS IS OFTEN FORGOTTEN.

SO BACK HERE THE BIGGEST AMOUNT OF MONEY WE GOT, IF YOU LOOK BACK IN 2018, IS JUST AROUND 13 MILLION.

AND I TALK TO PEOPLE WHO KNOW WHAT I DO FOR WORK AND IT'S LIKE, OH, THAT'S A LOT OF MONEY, ROBERT.

AND THEN I SAY, WELL, LET ME TELL YOU HOW MUCH THINGS ACTUALLY COST.

I THINK PEOPLE FORGET HOW MUCH THINGS ACTUALLY COST.

SO THIS SLIDE, I THINK SOME OF YOU HAVE SEEN IT BEFORE, JUST COMPARING THE DIFFERENT INTERVENTIONS WE HAVE IN THE HOUSING WORLD, PAYING FOR AN OUTREACH TEAM FOR A HUNDRED PEOPLE 1.2 MILLION A YEAR, PAYING FOR A HUNDRED SHELTER BEDS, 4 MILLION A YEAR, A HUNDRED RAPID REHOUSING.

THAT SERVICES WITH SOME TIME LIMITED SUBSIDIES, 3.9 I WANNA HIGHLIGHT THAT'S ACTUALLY LESS THAN PAYING FOR SHELTER.

SHELTER WE PAY FOR FOOD, WE DON'T COLLECT RENT.

THERE'S OTHER COSTS WITH RUNNING SHELTER THAT MAKE IT MORE EXPENSIVE THAN SUBSIDIZING RENT PLUS SERVICES.

RAPID REHOUSING IS TIME LIMITED.

PERMIT SUPPORTIVE HOUSING IS INTENDED TO BE AS LONG AS PEOPLE NEED IT, AND THAT'S FOR PEOPLE WITH DISABILITIES TYPICALLY.

AND THEN ON THE BOTTOM, I ADDED THIS JUST TO PUT SOME CONTEXT AND TO, TO GIVE YOU ALL SOME INFORMATION AS YOU'RE PREPARING FOR THE KINDS OF REQUESTS THAT WE'RE GONNA SEE AS FUNDS DRY UP.

ON THE LEFT HAND SIDE, THE OUTREACH ALONE AND THE SHELTER, IT SHOWS YOU WHAT PERCENTAGE OF PEOPLE IN THOSE PROGRAMS IN OUR COUNTY ACTUALLY EXIT TO PERMANENT HOUSING.

SO OUTREACH ALONE, 20 TO 30% SHELTER, 35 TO 45%.

STATEWIDE THE AVERAGE IS 30% OF PEOPLE IN STATE SUPPORTED SHELTER PROGRAMS EXIT TO PERMANENT HOUSING.

BUT RAPID REHOUSING AND PERMANENT SUPPORT HOUSING WHERE WE SUBSIDIZE PEOPLE, RENTS, MANY MORE PEOPLE EXIT AND ARE ABLE TO STAY IN HOUSING.

SO THERE'S GONNA BE A LOT OF TALK ABOUT WE NEED TO INVEST, INCLUDING FROM THE FEDERAL GOVERNMENT IN THIS ANNOUNCEMENT THAT I'M PREDICTING WE NEED TO PUT MORE MONEY INTO OUTREACH AND TEMPORARY HOUSING.

WE KNOW FROM OUR DATA AND FROM RESEARCH OVER THE PAST 30 YEARS THAT WHAT MAKES THE MOST DIFFERENCE IS PEOPLE GETTING THEIR RENT SUBSIDIZED FOR A PERIOD IN WHICH THEY NEED IT AND THE SUPPORTS FOR THEM TO BE ABLE TO KEEP THE HOUSING.

BUT WE ARE NOT DOING THAT, WE'RE MOVING IN THE OTHER DIRECTION.

AND YOU ALL ARE GONNA BE CHALLENGED, I THINK BY MANY PRESSURES TO PUSH MORE OF OUR RESOURCES TO THE LEFT SIDE OF THIS DIAGRAM.

I ENCOURAGE YOU TO JUST REMEMBER THIS AND THINK ABOUT IT.

WHAT ARE WE INVESTING IN AND WHY ARE WE INVESTING IN IT? UPCOMING RISK.

I ALREADY TALKED ABOUT THE STATE FUNDING REDUCTIONS.

I TALKED ABOUT THE COC FUNDING CUTS.

I JUST WANNA SPEAK A LITTLE BIT TO SOME OF THE OTHER EXPECTATIONS COMING FROM HUD.

ONE THAT I THINK SPEAKS TO THE MOMENT IS IN THE HUD CONTRACTS THAT OUR DEPARTMENT HAD TO SIGN.

WE HAD TO SIGN A CONTRACT THAT SAID WE'RE NOT GONNA PROMOTE ABORTION AND WE AREN'T GONNA SERVE IMMIGRANTS,

[04:50:01]

ESSENTIALLY UNDOCUMENTED IMMIGRANTS.

AND WE'RE GONNA MAKE SURE WE'RE NOT SERVING UNDOCUMENTED IMMIGRANTS.

AND WE'RE NOT GONNA HAVE A RADICAL GENDER, SEXUAL ORIENTATION AGENDA.

SO THIS IS PART OF OUR HUD HOUSING CONTRACT.

AND THAT'S A FORESHADOWING EVERYTHING, WHAT'S GONNA COME UP WITH THE NOTICE OF FUNDING AVAILABILITY FROM THE FEDERAL GOVERNMENT.

RANDY ALLUDED TO EMERGENCY HOUSING VOUCHERS.

I THINK IT IS THE BIGGEST REASON WE'VE SEEN A REDUCTION IN HOMELESSNESS.

THIS WAS INCREASE OF HOUSING VOUCHERS FOR PEOPLE EXPERIENCING HOMELESSNESS DURING THE PANDEMIC.

IT'S AROUND $6.8 MILLION A YEAR OF FUNDING THAT GOES THROUGH THE HOUSING AUTHORITY.

WE PAIRED SERVICES AND HELPED PEOPLE FIND HOUSING.

THERE ARE RIGHT NOW 250 HOUSEHOLDS ROUGHLY, THAT ARE GETTING THE SUBSIDY AROUND 550 PEOPLE.

THE MONEY'S GONNA RUN OUT IN DECEMBER OF 2026, AND I'M WORKING CLOSELY WITH COLLEAGUES IN THE HOUSING AUTHORITY TO TRY TO FIND OTHER OPTIONS FOR PEOPLE.

BUT RIGHT NOW, THEY'RE NOT ON THE TABLE.

THE FEDERAL GOVERNMENT IS NOT CONSIDERING EXTENDING THIS PROGRAM SO ONE OF THE STRATEGIES WE'RE TRYING TO ADVOCATE AND GET SOME FLEXIBILITY WITH HUD SO THEY CAN BE A LITTLE BIT OF A REED SO WE CAN TRY TO KEEP PEOPLE HOUSED.

BUT THIS IS A MAJOR ISSUE.

DECEMBER, 2026, MONEY'S GONNA RUN OUT.

THE HOUSING AUTHORITY AND THE FEDERAL GOVERNMENT BUDGET PROPOSAL IS FACING ON TOP OF THAT CUT ABOVE, WHICH NOT REALLY A CUT IT'S NOT CONTINUING THE PROGRAM THAT WAS SUPPOSED TO CONTINUE THROUGH 2030, BUT ON TOP OF THAT THE HOUSING AUTHORITY IS FACING A SIX TO $15 MILLION BUDGET CUT.

SO THEY'RE STARTING TO TALK INTERNALLY ABOUT WHAT ARE WE GONNA DO WITH ALL THE PEOPLE WHO ARE ALREADY IN SUBSIDIZED HOUSING? HOW CAN WE STRETCH SOME MONEY THAT WE'RE GONNA GET IT TO HAVE? SO MAJOR, MAJOR CUTS ON THE HOUSING SIDE.

WE ALREADY TALKED ABOUT THE MEDI-CAL CHANGES.

I WANTED TO SPEAK A LITTLE BIT TO YOUR QUESTION, SUPERVISOR MARTINEZ ABOUT CALAIM.

SO THE CALAIM MEDICAID WAIVER ENDS DECEMBER, 2026, DECEMBER, 2026.

SO IT'S AN IMPORTANT PERIOD.

THE HOUSING MONEY RUNS OUT, THE CALAIM PROGRAM ENDS.

I KNOW THE STATE WANTS TO CONTINUE ELEMENTS OF THE CALAIM PROGRAM.

IT'S GONNA BE VERY DIFFICULT FOR THEM TO DO SO IN THIS ENVIRONMENT BECAUSE OF THE OVERALL MEDI-CAL CUTS THAT ARE GONNA HAPPEN.

AND BECAUSE THEY'RE USING SOMETHING CALLED IN LIEU OF SERVICES.

IN LIEU OF SERVICES MEANS IF WE INVEST IN A HOUSING SERVICE, THAT'S GONNA BE A BETTER INVESTMENT THAN PAYING FOR PRIMARY CARE OR A HOSPITAL VISIT.

BASED ON WHAT YOU'VE HEARD SO FAR TODAY, THERE'S GONNA BE A LOT OF PRESSURE TO JUST KEEP THE HEALTHCARE SYSTEM AFLOAT TO KIND OF BREAD AND BUTTER TRADITIONAL HEALTHCARE SYSTEM.

SO THAT MEANS IF YOU'RE A MANAGED CARE PLAN, ARE YOU GONNA HELP THE HOSPITALS OR THE CLINICS, OR ARE YOU GONNA HELP PEOPLE WITH HOUSING? AND I THINK IN THE ABSENCE OF A COMMITMENT FROM THE FEDERAL GOVERNMENT, WHICH WE DON'T HAVE ANYMORE, THAT HOUSING IS A, AND FOOD ARE SOCIAL DETERMINANTS OF HEALTH, AND THAT SHOULD BE PART OF THE PROGRAM.

WE'RE GONNA BE FACED WITH THIS TENSION, THIS TRADE-OFFS BETWEEN SUPPORTING THE TRADITIONAL HEALTHCARE SYSTEM AND INVESTING IN THINGS THAT ARE NOT TRADITIONALLY PART OF THE HEALTHCARE SYSTEM THAT WE HAVE BEEN DOING HERE IN CALIFORNIA THERE'S A STUDY BY UCLA THAT LOOKED AT HOUSING DEPOSITS, AND HOUSING DEPOSITS ALONE RESULT IN A 30% REDUCTION IN HEALTHCARE UTILIZATION COST.

NOW WE'RE ALL GONNA BE FACED WITH THESE DIFFICULT TRADE-OFFS AS THESE BUDGETS HAPPEN.

BUT SO MEDI-CAL CHANGES ARE GONNA HAVE IMPACTS ON HOUSING AND HOMELESSNESS.

ALL OF THIS TO SAY WE SHOULD EXPECT THE POINT IN TIME COUNT NUMBER IS GONNA GO UP.

EVEN BEFORE ALL THESE THINGS THAT I'VE SAID THAT ARE GONNA HAPPEN, WE'RE ALL KIND OF IN RETRENCHMENT MODE EXPECTING THESE CUTS AND CHANGES.

SO PEOPLE ARE FEARFUL OF DOING ANY NEW THINGS OR EXPANDING.

WE'RE TRYING TO SAVE MONEY FOR A RAINY DAY TO KEEP PROGRAMS ALIVE.

THERE'S NO NEW HOUSING VOUCHERS GETTING ISSUED.

THAT'S BEEN A BIG KEY FOR OUR EFFORTS TO INCREASE THE NUMBER OF PEOPLE EXITING TO PERMANENT HOUSING.

AND THEN THE LAST POINT THE WHITE HOUSE ISSUED AN EXECUTIVE ORDER ON HOMELESSNESS.

AND IT WAS VERY CLEAR THAT THEY THINK HOMELESSNESS IS PRIMARILY AN ISSUE OF SUBSTANCE USE DISORDERS AND CRIME.

AND THAT RHETORIC IN SOME WAYS ECHOS STATEMENTS FROM OUR GOVERNOR'S OFFICE IN CALIFORNIA, AND THERE'S GONNA BE AN INCREASED PRESSURE ON ALL OF US TO FOCUS MORE ON THE VISIBLE PROBLEMS ASSOCIATED WITH HOMELESSNESS NEEDING TO CRIMINALIZE, SOME OF THE BEHAVIORS WE OBSERVE AND WE NEED TO INSTITUTIONALIZE INDIVIDUALS.

I THINK WHAT OFTEN GETS LOST IN THESE CONVERSATIONS IS INSTITUTIONS COST MONEY.

INSTITUTIONS COST MORE MONEY THAN SERVICES PLUS HOUSING, BUT WE ARE ENTERING AN ERA WHERE THAT'S WHERE THE POLICY AND THE RHETORIC IS PUSHING US BACK TO HIGHER COST, LESS HUMANE INSTITUTIONALIZATION.

SO I ENCOURAGE ALL OF YOU TO REALLY THINK ABOUT IT AS YOU'RE WEIGHING THE PROS AND CONS OF DIFFERENT INVESTMENT CHOICES.

YEAR AHEAD WE'VE GOT THE, THESE FOUR NEW HOUSING PROGRAMS THE SANTA CRUZ INN, THE TWO LOW BEARING

[04:55:03]

NAVIGATION CENTERS IN YOUTH.

TRANSITIONAL HOUSING WE HAVE AN EFFORT TO DO WHAT WE CAN TO MAXIMIZE WHILE WE HAVE THE CHANCE MEDI-CAL FOR HOUSING SERVICES.

BEHAVIORAL HEALTH AND HOUSING FOR HEALTH TIGHTENING UP OUR PARTNERSHIP BEING THE REEDS THAT FLEX AND WE DO THINGS DIFFERENTLY, 120 PERMITS, AFFORDABLE HOUSING UNITS ARE COMING ONLINE.

WE HAVE THE EMERGENCY HOUSING VOUCHER ISSUE THAT'S GONNA AFFECT US.

THE SOUTH COUNTY PREVENTION PROJECT.

HOME KEY PROJECT, WE HAVE A COUPLE THAT HAVE FUNDING GAPS.

ONE OF THE POSITIVE THINGS OF THE ONE BIG BEAUTIFUL BILL WITH AN ASTERISK IS THAT TAX CREDITS TO HELP CREATE MORE AFFORDABLE HOUSING HAVE ACTUALLY BEEN EXPANDED.

AND I'M HOPEFUL TODAY THERE'S AN ANNOUNCEMENT THAT ONE OF OUR HOME KEY PROJECT'S GONNA GET A TAX CREDIT AWARD.

I'M GONNA CHECK MY PHONE AFTER THE HEARING.

AND ANOTHER ONE HAS A HIGH PROBABILITY OF ACTUALLY GETTING TAX CREDITS SO THAT WE CAN FINISH THOSE PROJECTS.

AND THEN THE HUD COC FUNDS, I'VE TALKED ABOUT AD NAUSEUM.

WE NEED TO FOCUS ON, AND THIS IS FOR ME, FLEXING, WE NEED TO INTEGRATE OUR SERVICES, SHARE DATA MORE, AND WORK TOGETHER MORE TO SERVE PEOPLE WITH LESS MONEY.

AND THEN I AM, AND YOU ALL ARE GONNA BE FACED WITH A LOT OF DIFFICULT RESOURCE ALLOCATION AND TRADE OFF DECISIONS, AND YOU'VE HEARD THAT OVER AND OVER AGAIN TODAY I FEEL LIKE I'M PILING ON WITH THE STORY ABOUT THE HOUSING SITUATION.

SO WHAT ARE THE SPECIFIC BOARD ACTIONS? WE WANNA COME BACK IN 12 MONTHS AT LEAST WITHIN 12 MONTHS WITH AN UPDATE ON THE, HOW WE'RE DOING WITH THIS WORK.

I'M GONNA COME BACK TO THE ENCAMPMENT RESPONSE GUIDELINES IN YOUR BOARD PACKET.

WE'RE RECOMMENDING WITH THOSE HUD COC GRANTS.

THE HEALTH SERVICES AGENCY RECEIVED SOME GRANTS, OUR DEPARTMENT RECEIVED SOME GRANTS, WE HAVEN'T BEEN APPROACHING HOW WE APPLY FOR AND RENEW THOSE GRANTS IN A STANDARDIZED WAY.

WE'RE RECOMMENDING THAT YOU GIVE US SOME GUIDANCE IN THE BOARD PACKET THAT WE HANDLE THOSE CONSISTENTLY.

AND THEN FOR THE SANTA CRUZ INN PROJECT, IT'S A COLLABORATION BETWEEN THE CITY OF SANTA CRUZ AND US AND WE ARE DRAFTING DOCUMENTS TOGETHER.

SO WE WANT YOUR BLESSING TO WORK TOGETHER AND CO-FUND LEGAL REPRESENTATION TO MAKE SURE WE HAVE THE APPROPRIATE CONTRACT DOCUMENTS.

LEAVING ENCAMPMENT RESPONSE GUIDELINES, FOR THE LAST THING THAT I WANTED TO TALK ABOUT.

I'VE BEEN INVOLVED WITH CDI AND OTHER COUNTY DEPARTMENTS FOR I THINK PROBABLY OVER A YEAR.

ONE OF THE COUNTY STRATEGIC OBJECTIVES WAS THAT THE COUNTY WOULD BRING DEPARTMENTS TOGETHER TO COME UP WITH SOME GUIDELINES FOR ADDRESSING HOW DO WE HANDLE AND APPROACH PEOPLE WHO ARE UNSHELTERED LIVING IN ENCAMPMENTS.

AND I AM VERY THANKFUL AND APPRECIATIVE TO ALL THE TIME THAT ALL THE OTHER COUNTY DEPARTMENTS PUT INTO THIS ISSUE.

AND I THINK WHAT WE'RE SHARING WITH YOU ALL IS A CULMINATION OF THAT WORK LOTS OF COMPROMISES AND DISCUSSIONS.

AND THERE'S A COUPLE THINGS I WANNA HIGHLIGHT.

ONE, THE MONEY THAT'S AVAILABLE FROM THE STATE GOING FORWARD REQUIRES THAT WE HAVE ADOPTED ENCAMPMENT RESPONSE GUIDELINES.

SO THE NEXT ROUND OF STATE BLOCK GRANT FUNDING WILL REQUIRE THAT WE HAVE ADOPTED GUIDELINES.

WE'VE MISSED A COUPLE OF OPPORTUNITIES HERE LOCALLY BECAUSE WE DON'T HAVE GUIDELINES ADOPTED TO ACTUALLY APPLY FOR FUNDING RELATED TO HOUSING AND RESPONDING TO ENCAMPMENTS.

SO THERE'S A FUNDING CONSEQUENCE FOR NOT HAVING FORMALLY ADOPTED GUIDELINES.

I THINK THE OTHER CONSEQUENCE IS THAT, WE AS STAFF ARE NOT CENTERED AROUND WHAT ARE THE CORE PRINCIPLES AND WAYS WE'RE GONNA TRY TO WORK TOGETHER TO ADDRESS THIS REALLY COMPLICATED, UNFORTUNATE SITUATION.

WE HAVE SO MANY PEOPLE WITHOUT SHELTER.

SO WHAT THE GUIDELINES ATTEMPT TO DO IS PROVIDE A FRAMEWORK FOR US AROUND PRINCIPLES, HOW ARE WE GONNA ASSESS THE SITUATION AND WHAT'S THE BEST WAY TO RESPOND AND HOW ARE WE GONNA CONSIDER THE TRADE-OFFS BETWEEN ASKING PEOPLE TO LEAVE A CAMP, AND TRYING TO CONTINUE TO SUPPORT THEM TO GET ONTO A PATH TO HOUSING.

A COUPLE OF OTHER THINGS ABOUT THE GUIDELINES IS THAT THEY'RE GUIDELINES BECAUSE THE RESOURCE SITUATION IS SO IN FLUX IN SOME WAYS.

SOME OF MY COLLEAGUES WANTED TO FRAME IT AS A PILOT.

I HESITATE TO CALL IT A PILOT BECAUSE IT'S AN ONGOING QUALITY IMPROVEMENT EFFORT.

THE GOAL OF THE GUIDELINES IS FOR US TO ARTICULATE A GENERAL APPROACH AND PRINCIPLES WITH A COMMITMENT THAT WE'RE GONNA KEEP EVALUATING AND WORKING TOGETHER TO SEE HOW WELL IT'S WORKING AND MAKE ADJUSTMENTS OVER TIME AS NEEDED.

IT'S NOT A FIRM RIGID PROTOCOL, AND I THINK THE GUIDELINES IF YOU'VE HAD A CHANCE TO READ THEM WE'VE TRIED TO EMPHASIZE THAT OVER AND OVER AGAIN.

THE OTHER THING I WANNA SAY ABOUT THE GUIDELINES IS THEY'RE NOT INTENDED TO INTERFERE WITH NEEDING TO RESPOND URGENT OR EMERGENT SITUATIONS, EITHER FROM A MEDICAL OR A LAW ENFORCEMENT PERSPECTIVE.

THEY'RE NOT INTENDED TO SLOW DOWN THE EFFORTS OF OUR SHERIFF OR EMERGENCY MEDICAL OR FIRE PERSONNEL TO RESPOND TO A CRITICAL INCIDENT.

I THINK IN THOSE SITUATIONS WHERE THERE'S A CRITICAL INCIDENT THE GUIDELINES COULD BE USED AS AN OPPORTUNITY TO EVALUATE LIKE, OKAY, WHAT COULD WE HAVE DONE DIFFERENTLY TO NOT GET TO THAT SITUATION? SO I WANNA END THERE.

[05:00:02]

OPEN IT UP FOR QUESTIONS, COMMENTS, BUT HOPING YOU ALL ARE COMFORTABLE APPROVING THESE RECOMMENDED ACTIONS.

- WELL, THANK YOU FOR THE SOBERING PRESENTATION.

IT LOOKS LIKE WE HAVE A REAL DISMAL FUTURE AHEAD OF US.

BUT I WANT TO, YOU KNOW, ALSO BRING UP, ANOTHER PILLAR OF PROGRESS OR ACCOMPLISHMENTS, THAT CITY OF WATSONVILLE IS ENGAGING IN THIS HOMELESSNESS DISCUSSION AND JUST THIS LAST TUESDAY, THEY PASSED THEIR HOME HOMELESSNESS ACTION PLAN, THAT I'M THRILLED ABOUT.

YOU KNOW, SPEAKING OF TOUGH ROADS, YOU KNOW, WE'RE GONNA HAVE A TOUGH ROAD AHEAD OF US, BUT, YOU KNOW, WE HAVE TO FIGURE OUT HOW WE COMMIT TO GOOD GOVERNANCE WHEN ALL OUR OPTIONS ARE JUST BAD CHOICES FOR US, YOU KNOW GIVEN THE CUTS.

YOU KNOW, THE, YOU, YOU MENTIONED ABOUT POLITICAL DISCIPLINE AND I THINK THAT FOR ME, YOU KNOW, PART OF THAT EQUATES TO REALLY, MAKING THOSE TOUGH DECISIONS THAT WE'RE GONNA HAVE TO MAKE.

AND IT'S ALWAYS, YOU KNOW, THE HARDEST PART OF OUR JOB, I GUESS YOU COULD SAY.

WITH THAT, I'M GONNA TAKE IT OUT TO THE PUBLIC TO SEE IF ANYONE WOULD LIKE TO ADDRESS US ON THIS ITEM.

- HELLO EVERYONE.

THANK YOU ALL FOR HAVING THESE CHALLENGING CONVERSATIONS THAT ARE SO IMPORTANT TO OUR COMMUNITY.

MY NAME IS MIKE KITTRIDGE.

I WORK FOR THE COMMUNITY ACTION BOARD AND I'M THE DIRECTOR OF THE HOMELESSNESS PREVENTION AND INTERVENTION SERVICES DEPARTMENT.

BEFORE I GO ON, I WANNA TAKE A MOMENT AND RECOGNIZE SUPERVISOR MARTINEZ.

I WORKED UNDER HER AT THE HOMELESS SERVICES CENTER AND SHE HELPED GET ME ON THIS PATH, SO THANK YOU.

I ALSO WANNA THANK THE ENTIRE THE ENTIRE BOARD PARTICULARLY FOR YOUR SUPPORT OF THE SOUTH COUNTY, HOMELESSNESS PREVENTION PROGRAM.

THAT'S GONNA BE A GREAT PROGRAM TO HELP FAMILIES STAY HOUSED AND TO SEEK LEGAL SUPPORT WHEN THEY'RE FACING EVICTION.

I WANNA THANK ROBERT FOR THE WONDERFUL WORK THAT HE DOES.

I'VE HAD THE HONOR TO WORK WITH HIM ON THE TINY HOMES PROJECT AND RECURSO DE FUERZA.

AND IT HAS JUST BEEN AN HONOR AND I'VE LEARNED QUITE, QUITE A LOT.

I ALSO HAVE TO THANK OUR CAB TEAM WHO WORKS WITH HOMELESSNESS AND OUR HOMELESS INDIVIDUALS ACROSS THE COUNTY AND PARTICULARLY IN SOUTH COUNTY.

THEY DO GREAT WORK AND OFTEN CAN FEEL LIKE IT GOES UNNOTICED.

SO WHEN YOU SEE FOLKS AND CONNECT WITH FOLKS THAT ARE DOING THE WORK OUT IN THE FIELD, PLEASE THANK THEM.

I WANNA ENCOURAGE THE BOARD TO CONTINUE TO SUPPORT RENTAL ASSISTANCE AND EVICTION PREVENTION AS THEY'RE COST EFFECTIVE AND A GREAT WAY TO PREVENT HOMELESSNESS.

ADDITIONALLY, I WANNA GIVEN THE FUNDING CHALLENGES.

I ALSO WANNA ENCOURAGE YOU, WHEREVER POSSIBLE THAT SANTA CRUZ COUNTY MAINTAIN A HOUSING FIRST MINDSET, AND REDUCE ANY BARRIERS THAT FOLKS FACE WHEN TRYING TO EXIT HOMELESSNESS.

THANK YOU FOR YOUR TIME.

I APPRECIATE IT.

- NO, WE FORGET TO TURN ON THIS THING.

BUENAS TARDES.

GOOD AFTERNOON, MARIA ELENA WITH COMMUNITY ACTION BOARD.

I WANNA THANK THIS ROBERT AND, AND RANDY FOR THE OPPORTUNITY TO PARTNER IN VERY INTENSE AND INTIMATE WAYS AS WE MOVE THE CONVERSATION FORWARD IN THE COUNTY, BUT PARTICULARLY IN SOUTH COUNTY, WE WANNA CELEBRATE THE DECREASE IN THE PICK NUMBERS.

I MEAN, THAT'S HUGE.

WE WEREN'T CELEBRATING A COUPLE OF YEARS AGO, AND SO WE NEED TO CELEBRATE, FIND THOSE MOMENTS AND THOSE AREAS OF THINGS THAT WE NEED TO CELEBRATE.

I WANT TO CELEBRATE THE TINY HOMES PROJECT AND YOU KNOW, WE TALK ABOUT THE BRAIDING OF THE FUNDING AND THE ONE YEAR FUNDS AND THE, YOU KNOW, THE CHALLENGE OF BRAIDING FUNDING FOR A PROJECT LIKE THAT IS INCREDIBLY DIFFICULT.

AND ROBERT HAS GUIDED US IN A WAY THAT HAS BEEN FOCUSED ON THE PRIZE AND IN...

AS YOU EXIT WATSONVILLE, PLEASE GO DOWN RIVERSIDE AND TAKE A LOOK BECAUSE IT'S ABSOLUTELY INCREDIBLE TO SEE THOSE LITTLE HOUSES IN PLACE.

AND I WANNA ECHO WHAT MY COLLEAGUE SAID ABOUT, THE EVICTION PREVENTION AND THE WORK THAT, SUPERVISOR JUSTIN ALWAYS GIVES VOICE TO ABOUT THE IMPORTANCE OF EVICTION PREVENTION AND SUPPORTING THE RENTERS IN OUR COMMUNITY.

YOU KNOW, CAB WAS AROUND FOR A LONG, LONG TIME, AND AT ONE POINT WE WERE PROBABLY THE ONLY ONES DOING EVICTION PREVENTION.

I'M TALKING YEARS AGO.

AND SO IT'S IMPORTANT TO KEEP THAT HIGHLIGHT, BECAUSE WE KNOW WHAT IT MEANS FOR SOUTH COUNTY.

WE KNOW WHAT IT MEANS FOR HIGH DENSITY LIVING IN OUR...

FOR OUR FAMILIES AND OUR AGRICULTURAL FAMILIES.

- THANK YOU. IS THERE ANYONE ONLINE?

[05:05:02]

- YES, CHAIR.

ATHENA YOUR MICROPHONE'S NOW AVAILABLE.

- THANK YOU SO MUCH AND THANK YOU TO THE PRESENTERS.

THAT WAS A REALLY BRILLIANT PRESENTATION ABOUT SOME REALLY HARD MATERIAL, SO THANK YOU.

AND I REALLY WANT TO ECHO THAT IN ORDER TO DEAL WITH THESE COMING CUTS, THE BIGGEST ISSUE IS GOING TO BE FINDING WAYS TO WORK TOGETHER TO LOSE USE LESS MONEY TO DO THE SAME THINGS OR AS CLOSE TO THE SAME THINGS AS POSSIBLE.

I WONDER IF IT COULD BE LOOKED INTO ABOUT HOW MUCH MONEY IS SPENT CLEARING ENCAMPMENTS.

IF WE ARE REALLY GOING TO NEED TO BUCKLE DOWN AND USE MONEY PROPERLY I THINK ONE OF THE MOST CRUCIAL WAYS THAT MONEY COULD BE SAVED IS BY MAKING SURE PEOPLE'S STUFF ISN'T THROWN AWAY DURING SWEEPS WITH THE AMOUNT OF MONEY THAT IS PUT IN THROUGH NONPROFITS AND COUNTY WORK AS WELL AS CITY WORK TO GET PEOPLE THE SUPPLIES THEY NEED TO BE ABLE TO LIVE OUTDOORS UNTIL THEY CAN GET INTO SHELTER.

ONE OF THE BIGGEST WAYS WE LOSE MONEY IS SPENDING SO MUCH MONEY ON PUBLIC WORKS AND POLICE TO GO AND THROW AWAY CARELESSLY SO MANY VERY USEFUL ITEMS BECAUSE THEY ARE SO CONTAMINATED BY BEING OUTSIDE, WHICH IS EVIDENT BY THE FACT THAT PEOPLE ARE LIVING OUTSIDE AND DIRT SHOULDN'T COUNT AS A REASON FOR SOMETHING TO BE THROWN AWAY.

I ALSO WONDER IF MONEY COULD BE TAKEN FROM THE DRONES PROGRAM.

SINCE THE COUNTY SHERIFFS HAVE SO MANY DRONES AND MILITARY WEAPONS.

IF SOME OF THAT MONEY COULD BE ALLOCATED BETTER TO PREVENT CRIME BY ACTUALLY TAKING CARE OF THE PEOPLE.

THANK YOU SO MUCH FOR YOUR TIME AND I HOPE THAT WE CAN UNDERSTAND THAT PEOPLE LIVING OUTDOORS, UNBOTHERED AND UNPUNISHED IS PROBABLY THE CHEAPEST WAY FORWARD AND CRIMINALIZATION IS GOING TO BE THE MOST EXPENSIVE CHOICE THE COUNTY CAN CHOOSE AND DON'T DESTROY PEOPLE'S CARS.

THE FACT THAT YOU GUYS WERE TRYING TO PASS A BILL TO DESTROY PEOPLE'S CARS IS ABSOLUTELY RIDICULOUS.

DON'T EVER PASS THAT. - THANK YOU.

- I SEE NO ADDITIONAL SPEAKERS ONLINE CHAIR.

- THANK YOU. WITH THAT, I'LL BRING YOU BACK TO THE BOARD.

ANY QUESTIONS OR COMMENTS? SUPERVISOR CUMMINGS.

- THANK YOU, CHAIR.

AND I JUST WANNA THANK AGAIN EVERYONE FOR ALL THEIR HARD WORK ON A TOPIC THAT IS DEFINITELY A BIT OF CONCERN FOR FOLKS.

AND, YOU KNOW, I THINK JUST HIGHLIGHTING AGAIN, YOU KNOW BEFORE 2020 WE DIDN'T HAVE A HOMELESSNESS DIVISION.

AND I BELIEVE THAT RANDY AND ROBERT, YOU ALL HAVE DONE AND CARLOS AS WELL, HAVE DONE A REALLY TREMENDOUS JOB OF TRYING TO BUILD OUT A DEPARTMENT THAT PEOPLE IN OUR COMMUNITY HAVE EXPRESSED US WANTING FOR A VERY LONG TIME.

AND ON A SUBJECT THAT PEOPLE WANNA SEE US ADDRESS IN A HUMANE MANNER.

AND SO, YOU KNOW, AGAIN, THIS PRESENTATION REALLY HIGHLIGHTS YOU KNOW, THE NEGATIVE IMPACTS WE'RE GONNA BE FACING MOVING FORWARD.

I ALSO THINK THAT IT, IT DID HIGHLIGHT, YOU KNOW, ONE THING IN PARTICULAR WHERE, YOU KNOW, THE STATE FOR YEARS HAS HELPED US INVEST IN, YOU KNOW, TRYING TO GET SOME OF THESE PROJECTS MOVING FORWARD.

AND THE FACT THAT THEY DIDN'T PUT ANY MONEY IN THE BUDGET REALLY, YOU KNOW, PUTS COUNTIES IN A TOUGH SPOT.

AND, AND SO I THINK THAT IN ADDITION TO THE DIRECTION WE'RE PROPOSING, I ALSO THINK THAT IT WOULD BE GOOD IF WE DIRECT STAFF TO HELP DRAFT A LETTER FOR THE CHAIR TO SEND ON BEHALF OF THE BOARD TO THE CITY COUNCILS, OUR STATE AND FEDERAL REPRESENTATIVES ON HOW THESE STATE AND FEDERAL CUTS WILL BE IMPACTING, THE COUNTY AND OUR ABILITY TO REALLY ADDRESS HOMELESS SERVICES.

I KNOW IN THE PAST WHEN I WAS ON SANTA CRUZ CITY COUNCIL YOU KNOW, THERE ARE TIMES WHEN CITIES WHEN DIFFERENT JURISDICTIONS ARE POINTING THE FINGER AT EACH OTHER.

BUT I THINK IT'S REALLY IMPORTANT IN THIS CONTEXT THAT, THE STATE, IN ADDITION TO THE FEDS, HAVE CUT THEIR FUNDING TO HELP US TO HELP SUPPORT THESE EFFORTS THAT WE'VE INVEST A LOT OF TIME AND ENERGY AND EFFORT INTO REALLY STANDING UP GIVEN THE DEMANDS BY THE GOVERNOR AND, AND OUR COMMUNITY MEMBERS.

AND SO I THINK IT'S REALLY IMPORTANT THAT WE EDUCATE AND MAKE SURE PEOPLE ARE AWARE THAT, YOU KNOW, WE ARE TRYING TO DO OUR PART HERE IN THE COUNTY AND, YOU KNOW, WE'RE LOSING FUNDING ON ALL ANGLES.

AND I WILL JUST ALSO HIGHLIGHT, YOU KNOW, ONE OF THE THINGS I DO WANT TO THANK OUR COUNTY RESIDENTS FOR IS FOR HELPING TO PASS MEASURE K.

'CAUSE WHILE THAT'S A VERY SMALL POOL OF FUNDING, THERE IS A CONSISTENT REVENUE SOURCE OF FUNDING COMING IN

[05:10:03]

THAT CAN BE UTILIZED FOR AFFORDABLE HOUSING AND POTENTIALLY FOR HOMELESSNESS.

AND SO I'D ALSO WANTED TO JUST, YOU KNOW, THANK OUR RESIDENTS IN THIS COUNTY FOR PASSING THAT MEASURE WHEN THEY DID, BECAUSE I DON'T THINK ANY OF US SAW THAT WE'D BE IN THIS SITUATION.

AND SO AT LEAST WHEN WE SEE THESE CUTS COMING, WE CAN REEVALUATE THE FUNDING THAT WE DO HAVE AVAILABLE TO US TO SEE, OKAY, LIKE WHERE CAN WE PUT THIS TO HAVE THE GREATEST AMOUNT OF OF USE FOR OF THOSE DOLLARS.

AND SO YEAH, JUST I THINK THAT IT'S REALLY CRITICAL THAT WE'RE CONTINUING TO COMMUNICATE OFTEN.

I DO THINK IT'LL BE HELPFUL FOR US TO GET AN UPDATE AT THE MIDYEAR BUDGET BECAUSE A LOT OF THESE CUTS HAVEN'T HIT YET, AND IT'LL BE, YOU KNOW, INTERESTING TO SEE WHAT HAPPENS WHEN WE GET TO OUR MIDYEAR BUDGET.

BUT I'LL JUST LEAVE MY COMMENTS THERE AND LOOK FORWARD TO CONTINUING TO HELP WORK ON THIS EFFORT.

I'LL KEEP MY COMMENTS BRIEF.

I'M VERY IMPRESSED BY THE LEVEL OF WORK THAT THIS, THAT YOUR DEPARTMENT HAS ACHIEVED IN THE PAST FEW YEARS.

THANK YOU VERY, VERY MUCH SO IF SOME OF THESE HOUSING VOUCHERS SUNSET, I MEAN, WHAT, WHAT WILL HAPPEN TO THE 550 OR MORE PEOPLE THAT ARE IN PERMANENT HOUSING, WILL THEY JUST STAY THERE PENDING EVICTION? YEAH. AND THEN, YEAH.

- YEAH, I THINK THE SITUATION WITH THE INDIVIDUALS WITH THE EMERGENCY HOUSING VOUCHERS, I THINK A LETTER'S GONNA GO OUT TODAY, GIVING THEM SOME INFORMATION ABOUT THE SITUATION AND SOME OPTIONS.

WE'RE WORKING WITH THE HOUSING AUTHORITY TO EXPLORE, PRIORITIZING THEIR ACCESS TO THE, THE MAIN REGULAR PROGRAM AND OTHER AFFORDABLE HOUSING THAT OPENS UP.

AND IF DECEMBER 2026 GOES, COMES AROUND AND WE HAVEN'T BEEN SUCCESSFUL WITH OUR ADVOCACY EFFORTS, THAT SUBSIDY'S GONNA DISAPPEAR.

SO EITHER PEOPLE HAVE TO PICK UP THE COST OF THAT RENT IN JANUARY, OR THEY'RE GONNA GET A NOTICE.

AND THEY'LL BE ASKED TO LEAVE OR PAY AT THAT POINT.

SO THIS WILL REALLY...

- [CROSSTALK] HIT YEAR, RIGHT? JANUARY.

- JANUARY 2027. - 2027.

- YEAH. - YEAH.

- WELL, I FORGOT TO, I WANTED TO SHARE JUST I WANTED TO SHARE THAT A BILLION DOLLARS, WHICH IS WHAT THE STATE WAS PUTTING INTO HOMELESSNESS.

JUST FOR CONTEXT, I KNOW THESE BIG NUMBERS GET OUT THERE.

THAT'S 0.3% OF THE STATE BUDGET AND IF WE OFFERED HOUSING VOUCHERS TO EVERY ELIGIBLE HOUSEHOLD IN THE UNITED STATES, THAT WOULD BE 0.2% OF THE FEDERAL BUDGET.

SO WE HAVE TO ASK OURSELVES THAT SMALL AMOUNT OF MONEY WHY CAN'T WE FIND THE COURAGE TO INVEST THAT SMALL AMOUNT OF MONEY IN SOMETHING SO BASIC AS STABLE HOUSING? AND THE VOUCHER SITUATION THAT YOU'RE ASKING ABOUT IS A REFLECTION.

WE, FOR WHATEVER REASON OR REASONS, WE HAVEN'T BEEN ABLE TO FIND THAT COURAGE AS A NATION TO INVEST IN THIS KIND OF BASIC HUMAN NEED, AND SO WE'RE FACED WITH THAT CUT COMING IN DECEMBER.

- THANK YOU, SUPERVISOR MARTINEZ.

- THANK YOU. I ALSO HAD A QUESTION ABOUT THESE VOUCHERS.

CAN YOU JUST EXPLAIN REALLY SPECIFICALLY WHICH VOUCHERS THESE ARE? IT'S NOT PART OF THE REGULAR PROGRAM.

WAS IT THE DISABLED, MEDICALLY VULNERABLE VOUCHERS? IS IT, WERE THEY COVID VOUCHERS? WHERE DID THESE ONES COME FROM? - THEY WERE A SPECIAL PROGRAM CALLED EMERGENCY HOUSING VOUCHERS THAT WERE RELEASED DURING THE PANDEMIC, I THINK IN 2021.

THEY WERE SUPPOSED TO BE BUDGETED FOR A 10 YEAR PERIOD.

THE CURRENT FEDERAL ADMINISTRATION SAYS, WELL, WELL, THEY'RE USING A LOT MORE MONEY FASTER, SO THE MONEY'S GONNA RUN OUT IN DECEMBER 2026, AND WE'RE NOT GONNA ADVOCATE OR ASK CONGRESS FOR ANY MORE MONEY.

WHEN WE FIRST STARTED THE PROGRAM THERE WERE 400 HOUSEHOLDS WHO WERE GETTING EMERGENCY HOUSING VOUCHERS.

SOME OF THEM HAVE EXITED AND MOVED ON TO OTHER STABLE HOUSING SO NOW IT'S DOWN TO 250.

- GOT IT. OKAY.

OKAY. THAT, THAT'S HELPFUL CLARITY AND, AND IN THE SAME CATEGORY OF A HOUSING AUTHORITY VOUCHERS WITH THE BUILDING OF, TAKE FOR EXAMPLE, THE HARVEY WEST STUDIOS WHICH IS GONNA HAVE SOME PROJECT BASED VOUCHERS.

ARE THOSE AT RISK AT ALL? - GOOD QUESTION.

THE PROJECT BASED VOUCHERS AT HARVEY WEST STUDIOS AND OTHER SIMILAR PROJECTS, THEY'RE NOT AT RISK AT THE MOMENT.

AND THOSE PARTICULAR BUILDING BASED VOUCHERS, ONE OF OUR STRATEGIES IS TO FIND OUT IF THERE'S ANYBODY IN THE EHV PROGRAM WHO HAS THAT VOUCHER THAT'S EXPIRING THAT MIGHT BE ELIGIBLE FOR THAT SPACE IN THAT BUILDING, SO THAT WE GIVE PEOPLE THAT OPTION.

- RIGHT.

THAT'S WHERE I WAS GOING WITH THAT. THANK YOU.

WELL, FIRST, JUST KIND OF BACKING UP.

THANK YOU FOR THE PRESENTATION.

IT REALLY...

THERE WAS SO MUCH IN YOUR STAFF REPORT AND IN YOUR ANNUAL REPORT SO I APPRECIATED THE OPPORTUNITY TO READ THROUGH ALL OF IT.

EVEN THOUGH WE HAVE SO MUCH SORT OF UNFORTUNATE NEWS, LOOKING FORWARD THERE, LIKE YOU SHARED,

[05:15:01]

THERE WERE SOME REALLY IMPORTANT HIGHLIGHTS TO CELEBRATE AND SO IT'S, IT'S NICE TO HAVE AN OPPORTUNITY TO DO THAT.

THANK YOU TO OUR PARTNERS WHO ARE HERE TODAY, YOU KNOW, CAB AND SO MUCH OF THE GREAT WORK THAT'S HAPPENING HERE IN SOUTH COUNTY AND ACROSS THE COUNTY TO MAKE GOOD ON THE STRATEGIC PLANNING THAT WE'VE DONE AS A COUNTY FOR SOME TIME, EVEN THOUGH WE SEE ON THE HORIZON MUCH OF THAT WORK BEING DISMANTLED.

ONE THING THAT I WANNA SHARE FROM MY PERSPECTIVE IS THAT WHEN I MOVED TO THIS COMMUNITY IN 2010, I CAME TO BE THE EXECUTIVE DIRECTOR OF THE HOMELESS SERVICES CENTER, WHICH IS NOW HOUSING MATTERS.

AND AT THAT TIME, OUR COMMUNITY WAS GOING THROUGH THIS CHALLENGE OF DECIDING, YOU KNOW, IS DO WE DO MORE EMERGENCY SUPPORT OR WHAT IS THIS HOUSING FIRST THING? AND WE HAVE SEEN OUR COUNTY MAKE SO MUCH PROGRESS ADOPTING HOUSING FIRST AS THE WAY THAT WE TURN THE CURVE ON HOMELESSNESS.

AND WE'RE SEEING IT IN OUR NUMBERS, WE'RE SEEING IT, IT WITH OUR PIT COUNTS, AND WE'RE SEEING IT WITH JUST THE QUALITY OF LIFE OF SO MANY PEOPLE WHO'VE BEEN PERMANENTLY HOUSED AS A RESULT OF ALL OF THIS GOOD WORK.

AND SO IT'S INCREDIBLY DISHEARTENING TO HEAR THAT THERE MAY BE A 180, IF YOU KNOW THAT NUMBER'S VERY SIGNIFICANT.

THERE MAY BE A 180 IN THE OTHER DIRECTION MOVING AWAY FROM PERMANENT SUPPORTIVE HOUSING AND HOUSING FIRST MODELS BECAUSE THAT, BECAUSE THOSE ARE THE EVIDENCE-BASED PRACTICES THAT ARE PROVEN TO WORK.

SO AS A BOARD, I HOPE THAT WHEN THESE DECISIONS COME BEFORE US WE CAN CONTINUE OUR COMMITMENT TO INVESTING IN PRACTICES THAT ARE DATA-DRIVEN, EVIDENCE-BASED, AND CREATE RESULTS.

BECAUSE THAT'S WHAT'S GOTTEN US HERE AND THE GOOD PROGRESS DONE TO DATE.

AND, AND AS WE FACE THIS DIFFICULT DECISIONS, I THINK THOSE ARE SOME VALUES THAT I HOPE WE CAN CONTINUE TO, TO USE TO MAKE THOSE DECISIONS.

I DID WANT TO JUST TAKE A MOMENT AND PAUSE ON THE AND HAVE A FEW COMMENTS ON THE ENCAMPMENT GUIDANCE PROTOCOL, WHATEVER THEY CALL THESE THE ENCAMPMENT RESPONSE GUIDELINES.

YOU KNOW, THERE'S A LOT IN THAT ITEM THAT'S KIND OF TUCKED INTO A MUCH BIGGER ITEM AND I WANT TO JUST RECOGNIZE FOR MEMBERS OF THE BOARD AND FOR THE PUBLIC THAT, WHAT I'M HEARING YOU SAY IS THAT THESE ARE GUIDELINES THAT, THAT THIS IS A STEP IN THE RIGHT DIRECTION.

AND IF AND WHEN OUR COUNTY NEEDS TO RESPOND TO ENCAMPMENTS, THERE MAY BE OPPORTUNITIES FOR US TO ADJUST AND IMPROVE THESE GUIDELINES.

IS THAT CORRECT? - YES, THE IN SPIRIT OF THEM IS THAT WE WANT TO HAVE CONTINUOUS QUALITY IMPROVEMENT.

LOOK AT ARE THEY WORKING, ARE THEY NOT WORKING? HOW CAN WE IMPROVE THEM? - OKAY.

AND SO JUST ONE QUICK QUESTION AND IN, YOU KNOW, BEFORE THAT TIME COMES AND WE ARE DOING A KIND OF COORDINATED RESPONSE ACROSS MANY COUNTY DEPARTMENTS.

I NOTICED THAT IN THE GUIDELINES IT SAID THAT THE CEO'S OFFICE WOULD KIND OF DECIDE IF SOMETHING HAD BEEN, YOU KNOW, HIT THE PRIORITY LEVEL BY WHICH A RESPONSE WOULD BE NEEDED.

IS THERE ANY MORE THAT YOU CAN ELABORATE ON THAT, YOU KNOW WHAT MIGHT TRIGGER THAT LEVEL OF A RESPONSE? - YEAH, I THINK MY EXPERIENCE IS THAT WHEN YOU HAVE MULTIPLE DIFFERENT DEPARTMENTS INVOLVED AS WE DO AND CITIES AS WELL AS OTHER COUNTIES IN CALIFORNIA THAT ARE ASSESSING AND RESPONDING TO THE CONSEQUENCES OF HAVING SO MANY UNSHELTERED PEOPLE, YOU NEED TO IDENTIFY IF THERE'S DIFFICULTY MAKING A DECISION AND THERE'S DIFFERENCES OF OPINION, WHO'S GONNA ULTIMATELY MAKE THE DECISION.

SO I THINK THE INTENTION OF THE GUIDELINES IS TO BE CLEAR THAT THE COUNTY EXECUTIVE AS THE GROUP THAT OVERSEES ALL OF US AND OUR WORK IN OUR DIFFERENT DEPARTMENTS WILL BE THERE TO HELP ULTIMATELY MAKE THE DECISION IF AND WHEN IT GETS TO THAT POINT.

AND WHAT... I ALSO THINK THAT OUR GROUP FELT LIKE IT WAS IMPORTANT FOR THEM TO BE IN THE CONVERSATIONS THAT WE'RE HAVING ABOUT ENCAMPMENTS, TO UNDERSTAND THE TRADE-OFFS AND THE COSTS AND HOW IT IMPACTS THE DIFFERENT DEPARTMENTS.

I DON'T THINK WE WILL ALWAYS NEED THE COUNTY EXECUTIVE TO MAKE THE CALL.

I THINK OFTEN THE GROUPS OF DEPARTMENTS INVOLVED IN A SITUATION WILL HAVE CONSENSUS ABOUT THE BEST APPROACH.

BUT THE GUIDELINES WERE WRITTEN TO BE INCLUSIVE OF EXECUTIVE INVOLVEMENT FOR EDUCATION AWARENESS, BUDGET, RESOURCE ISSUES, AND RESOLVING DIFFERENCES OF OPINION IF WE GET TO THAT POINT.

I THINK WHAT I LIKED ABOUT THE PROTOCOL WAS HOW COLLABORATIVE IT WAS IN NATURE AND THE KIND OF DEFINING OF ROLES FROM THE VARIOUS DEPARTMENTS, WHETHER THAT'S HEALTH AND HUMAN SERVICES, YOU KNOW, THE SHERIFF'S OFFICE, CDI.

[05:20:01]

ONE DEPARTMENT THAT I THINK MIGHT HAVE BEEN MISSING IS ANIMAL SERVICES, AND I MIGHT ENCOURAGE THAT THEY BE AT THE TABLE IF NECESSARY.

BUT I LOOK FORWARD TO LEARNING FROM THESE PROTOCOLS, AND I HOPE THAT WE CAN BE A PART OF A DISCUSSION IF THERE'S CHANGES THAT ARE NEEDED IN THE FUTURE.

AND THEN FINALLY I'LL JUST SHARE THAT, WHEN AND IF THE RECOMMENDED ACTIONS ARE MOVED, I AM GONNA BE ABSTAINING FROM ONE PORTION OF RECOMMENDED ACTION NUMBER FOUR, RELATING TO A GRANT FOR ENCOMPASS DUE TO MY RECENT EMPLOYMENT AS THEIR CEO AND MY COMMITMENT TO THE COMMUNITY TO AVOID VOTING ON ENCOMPASS CONTRACTS IN MY FIRST YEAR IN OFFICE.

HOWEVER, I WOULD BE VOTING TO APPROVE, THE REMAINING ITEMS UNDER ITEM NUMBER FOUR AS NECESSARY.

SO I'LL DO THAT WHEN THE, WHEN THE ROLL TIME COMES.

- SUPERVISOR KOENIG.

- THANK YOU CHAIR.

ALSO I WANNA CELEBRATE THE INCREDIBLE WORK REDUCING HOMELESSNESS UP TO THIS POINT.

I MEAN, I THINK IF YOU HAD TOLD ME, I MEAN EVEN AT THE BE BEGINNING OF WHEN I STARTED THIS ROLE THAT WE WERE GONNA HAVE MULTIPLE YEARS WHERE WE REDUCED HOMELESSNESS BY 20% OR MORE, I'D BE LIKE, WOW, THAT'S GREAT.

LET'S, LET'S DO IT.

AND SO THE FACT THAT YOU'VE DELIVERED THAT, THAT THIS COMMUNITY HAS DELIVERED, THAT WORKING, IN CONCERT IS JUST PHENOMENAL.

HAVING BEEN ON THE COC, THE, THE CONTINUUM OF CARE AND KNOWING THAT THAT PROCESS FOR APPLYING FOR FUNDING IS PRETTY ADMINISTRATIVE, I'M, I'M TOTALLY FINE WITH TAKING, AN APPROVAL STEP OUT OF THAT PROCESS FROM THE BOARD.

I'M JUST CURIOUS HOW HSA AND HSD WOULD JUST PROVIDE UPDATES TO THE BOARD IN THE ABSENCE OF KIND OF THE APP APPROVAL.

- YEAH. GREAT QUESTION.

WE CAN INCLUDE IN OUR ANNUAL UPDATES, JUST THE STATUS OF THE COC FUNDING.

AND I THINK THERE WAS A REQUEST EARLIER, JUST KINDA THE GENERAL BUDGET.

GIVEN WHAT'S HAPPENING WITH THIS FUNDING SOURCE AND OTHERS, I'M HAPPY TO BE HERE FOR BUDGET CONVERSATIONS TOO AND GIVE UPDATES ON THE STATUS OF THAT MONEY.

- OKAY, THANKS.

AND I UNDERSTAND THERE'S BEEN SOME PERMITTING ISSUES WITH LIVE OAK LANDING.

DO WE STILL ANTICIPATE THAT THEY WILL BE OPENING TO SERVE RESIDENTS AT THE BEGINNING OF OCTOBER OR ARE WE, ARE WE GONNA MEET ALL OUR STATE REQUIREMENTS? I THINK THAT ULTIMATELY THAT PROGRAM IS KIND OF GONNA HELP US MEET SOME REQUIREMENTS AROUND THE BEHAVIORAL HEALTH BRIDGE HOUSING OPENING.

BY A CERTAIN DATE.

WHERE ARE WE WITH ALL THOSE ELEMENTS? - YEAH, I THINK THAT THE KIND OF EARLY OCTOBER WAS MAYBE A LITTLE BIT AMBITIOUS FOR GETTING THINGS LAUNCHED IN TERMS OF NEW STAFFING AND GETTING EVERYTHING LINED UP.

I'M STILL HOPEFUL THAT BY END OF OCTOBER, EARLY NOVEMBER, WE'LL HAVE THINGS UP AND RUNNING.

THE PARTICULAR FUNDING SOURCE THAT'S PRIMARILY BEING USED TO START UP THAT PROGRAM IS ACTUALLY THE CITY OF SANTA CRUZ ENCAMPMENT RESPONSE PROGRAM AND THE STATE RECENTLY EXTENDED THE SPENDING DEADLINE WHICH IS INCREDIBLY HELPFUL.

BECAUSE THE FUNDS WERE SUPPOSED TO BE ENTIRELY SPENT BY 2026 AND IT'S GOT EXTENDED ANOTHER YEAR.

SO THAT GIVES US MORE TIME TO STRETCH OUT THOSE DOLLARS AND SUPPORT THE PROGRAM.

WE ARE GETTING REQUESTS FROM THE AGENCY THAT MANAGES THE BEHAVIORAL HEALTH BRIDGE HOUSING PROGRAM FUNDS GO FASTER.

YOU'RE NOT USING THIS MONEY FAST ENOUGH, I HAVE TO SAY, AS A STAFF MEMBER A LOT OFFICIALS SAY, USE THE MONEY FAST AND THEN WE SAY, WELL, WHERE'S THE NEXT ROUND OF MONEY GONNA COME FROM? AND THEY'RE LIKE, OH, WE DON'T KNOW.

WE CAN'T PROMISE ANYTHING.

SO I SAY, WELL, WE'RE NOT GONNA USE IT FAST, THEN WE'RE GONNA STRETCH IT TO HELP LEVEL OUT THE SITUATION.

SO THERE'S SOME TENSION, I'D SAY, BETWEEN LOCAL GOVERNMENTS IN THE STATE AROUND THEIR PUSH TO GET MONEY OUT QUICKLY, AND THEIR LACK OF WILLINGNESS TO COMMIT TO ONGOING FUNDING.

SO SOME OF THAT IS MAYBE WHAT YOU'RE HEARING.

THERE'S A LITTLE BIT OF TENSION THERE.

I MEAN, WE'VE HEARD JUST SORT OF THIS ROLLBACK IN FUNDING IN GENERAL FOR OUR HOUSING AUTHORITY, BUT AS WE LITERALLY SIT HERE ON THE EVE OF A POSSIBLE GOVERNMENT SHUTDOWN, WE... I UNDERSTAND THAT, YOU KNOW, KINDA THE MONEY THAT OUR SANTA CRUZ COUNTY HOUSING AUTHORITY HAS ISN'T GONNA BE TAKEN AWAY.

BUT ARE WE WORRIED THAT SECTION EIGHT VOUCHERS LIKE COULD...

JUST NOT BE PAID FOR OR AFTER A COUPLE OF MONTHS.

WHAT, WHAT KIND OF TIMELINE DOES OUR HOUSING AUTHORITY HAVE BEFORE RENT PAYMENTS STOP? - YEAH, I HAVEN'T...

SO...

I'M NOT CERTAIN, I WOULD NEED TO ASK THE HOUSING AUTHORITY STAFF BUT I THINK IT'S PROBABLY SIMILAR TO THE SITUATION WITH CALFRESH THERE'S MAYBE A MONTH OR TWO OF CASH.

AND IF REVENUE, THE CASH IS NOT COMING FROM THE FEDERAL GOVERNMENT, IT'S GONNA GET REALLY HARD TO GET THOSE SUBSIDY PAYMENTS OUT TO THE PRIVATE LANDLORDS AND THE AFFORDABLE HOUSING PROJECTS.

SO A SHUTDOWN WOULD HAVE REALLY SIGNIFICANT CONSEQUENCES ON THE LANDSCAPE OF PEOPLE IN THESE PROGRAMS AND THAT'S COMPLETELY SEPARATE FROM THE PROPOSED BUDGET CUTS.

SO THE, THE BUDGET CUTS, IF THEY ARE APPROVED,

[05:25:02]

THE HOUSING AUTHORITY IS GONNA HAVE TO LOOK AT CHANGING HOW MUCH THE SUBSIDY PAYMENTS ARE.

MY UNDERSTANDING AND MY APPRECIATION OF OUR HOUSING AUTHORITY IS THEY DON'T WANT PEOPLE TO LOSE THEIR SUBSIDIES AND THEY DON'T WANT PEOPLE TO LOSE THEIR HOUSING.

SO THEY'RE TRYING TO FIND EVERY AVENUE POSSIBLE TO MAKE IT WORK WITHIN WHATEVER THAT BUDGET IS.

BUT A 6 TO $15 MILLION CUT IS A BIG DEAL.

THAT'S 400 SUBSIDIES, 450 SUBSIDIES FOR A HOUSEHOLD.

SO I THINK THAT THINGS THEY'RE LOOKING AT ARE INCREASING THE SHARE THAT PEOPLE HAVE TO PAY FOR THE HOUSING FINDING WAYS TO PAIR VOUCHERS WITH UNITS THAT ARE MAYBE A LITTLE BIT BELOW MARKET.

AND WE'RE CONTINUING TO TALK ABOUT CREATIVE IDEAS TO DEAL WITH IT IF IT DOES HAPPEN.

I THINK THE MOST EFFECTIVE THING WE COULD DO IS TO ADVOCATE AND EDUCATE ABOUT THE IMPACTS OF THIS, AT THE FEDERAL LEVEL SO THAT WE DON'T LOSE THE DOLLARS.

AS FAR AS THE ENCAMPMENT, PEOPLE WANNA SAY RESOLUTION, BUT I THINK THAT THERE...

- GUIDELINES - ... THEIR RESPONSE GUIDELINES.

I MEAN, THAT'S AS FAR AS THEY GO, I MEAN, I APPRECIATE THE IDEA THAT WE'RE PUTTING A PROCESS IN PLACE AND WE, YOU KNOW, WE HAVE OUR CHECKLIST AND KIND OF STANDARDIZED RECORD KEEPING METHODS FOR ADDRESSING ENCAMPMENTS.

YOU KNOW, I ALSO AGREE AND APPRECIATE THAT, YOU KNOW SWEEPING PEOPLE FROM ONE PLACE TO ANOTHER IS NOT AN EFFECTIVE WAY TO ADDRESS THIS PROBLEM.

YOU KNOW, THAT SAID, I ALSO I THINK THAT, I MEAN ONE OF THE MOST URGENT CALLS I GET, FOR SERVICE IN MY OFFICE IS WHEN SOMEONE IS CAMPED IN A BELOVED PARK.

I MEAN, WE'RE TALKING ABOUT, YOU KNOW, ESPECIALLY IF, FOR EXAMPLE, THE OTHER DAY SOMEONE WAS CAMPED AT PRIVATES RIGHT? BEAUTIFUL COASTAL PARK THAT'S VISITED BOTH BY TOURISTS AND, AND LOCALS ALIKE.

AND I MEAN, YOU, YOU DON'T, YOU DON'T BURN WHERE YOU BATHE, YOU DON'T FOUL WHERE YOU'RE FOLD.

I'M SURE YOU CAN THINK OF SOME OTHER ALLITERATIONS THAT MAYBE ARE, YOU KNOW, NOT, NOT KID FRIENDLY.

WE, WE DO NEED TO MAINTAIN A DISTINCTION OF WHAT DIFFERENT SPACES ARE USED FOR? AND, AND OUR PARKS IN PARTICULAR, A PLACE WHERE, YOU KNOW, PEOPLE GOING THROUGH ALL THESE HARDSHIPS ARE GOING TO GO FOR A MOMENT OF RESPITE WHETHER THAT'S JUST TO BE IN NATURE OR TO PLAY WITH THEIR CHILDREN.

I THINK WE REALLY, I MEAN, WHAT I DON'T SEE IN THESE RESOLUTION GUIDE OR RESPONSE GUIDELINES, I MEAN, WE NEED TO MAKE A COMMITMENT TO HAVING PLACES WHERE PEOPLE CAN GO THAT ARE NOT OUR PARKS.

AND I FEEL LIKE THAT IS KINDA THE BIGGEST, I MEAN, IT'S... WE'RE NOT SEEING IT SO MUCH, AT LEAST IN THE UNINCORPORATED COUNTY AS AN ISSUE THAT WE NEED TO ADDRESS TODAY.

BUT I MEAN, I THINK THAT'S WHAT WE NEED TO BE THINKING ABOUT HERE.

IF WE SEE THIS ISSUE OF UNSHELTERED HOMELESSNESS REALLY START TO TICK UP BECAUSE, I, I KNOW THAT'S WHAT, WHAT PEOPLE STRUGGLE WITH WHEN THEY'RE, WHEN THEY'RE OBSERVING THE PROBLEM, IT'S LIKE...

SO ANYWAY, I'M JUST GONNA EARMARK THAT.

I'M FINE WITH THE RESPONSE GUIDELINES TODAY AND I APPRECIATE SOME OF THE FEEDBACK THE SHERIFF'S OFFICE HAS PROVIDED IN THE RECENT WEEKS.

AND I, I GUESS THE ONLY THING I WOULD ADD IS SINCE THE SHERIFF'S OFFICE IS ONE OF THE AGENCIES CONSISTENTLY IMPLEMENTING SOME OF THIS, THESE POLICIES AND DOING FIRST CONTACTS.

I WOULD SUGGEST THAT WE ADD THEM AS ONE OF THE DEPARTMENTS THAT'S ABLE TO MAKE MINOR ADJUSTMENTS.

I MEAN, OBVIOUSLY THEY COULD DO THAT THROUGH THE HOUSING FOR HEALTH DIVISION OR COMMUNITY DEVELOPMENT AND INFRASTRUCTURE I JUST THINK THAT BY ADDING THEM AS ONE OF THE EXPLICIT DEPARTMENTS THAT IS SORT OF AUTHORIZED.

I MEAN, ANY, ANYONE WHO INITIATES ONE OF THESE CHANGES IS GONNA HAVE TO HAVE CONVERSATIONS WITH EVERYONE ELSE INVOLVED.

BUT I JUST WANT... I THINK THAT BY ADDING THEM, IT'S SETTING THE EXPECTATION THAT, THAT THEY'RE ABLE TO INITIATE SUGGESTIONS FOR MINOR ADJUSTMENTS.

SO I'LL LEAVE MY COMMENTS THERE.

- THANK YOU. I'LL KEEP MY COMMENTS SHORT.

I JUST WANT TO ECHO THE SAME SENTIMENTS AND THOUGHTS OF SUPERVISOR MARTINEZ AND CUMMINGS ON THIS ISSUE.

YOU KNOW, I HAD MENTIONED IT WAS A DISMAL PRESENTATION.

BUT I HAVE TO SAY IT'S ALSO VERY THOUGHTFUL, THOROUGH, AND COMPASSIONATE, AND THAT'S WHAT WE NEED TO CONTINUE TO DO.

THE REASON I SAID THAT IS BECAUSE THAT, YOU KNOW, THERE'S A LOT OF UNCERTAINTY AT THE FEDERAL LEVEL, THAT MAKES THINGS, YOU KNOW, DIFFICULT OR BLEAK FORECAST.

THE ONLY THING I WANT TO, ADD ON IS THAT

[05:30:03]

I WOULD LIKE TO SEE DR. RANDALL CONTINUE THE WORK WITH SOUTH COUNTY TO CONTINUE TO MOVE THE PENDULUM.

AND WITH THAT I'LL BRING YOU BACK TO THE BOARD SUPERVISOR CUMMINGS.

- THANK YOU, JARED.

I'M GONNA SEE IF I CAN CAPTURE SOME OF THIS.

SO I'M GONNA MOVE THAT WE CONTINUE TO HAVE THESE 12 MONTH UPDATES, BUT WE DO HAVE AN UPDATE AT OUR MIDYEAR BUDGET REPORT.

WE ADOPT THE ENCAMPMENT RESPONSE GUIDELINES AND THE ADDITIONAL DIRECTION I'M THINKING, I'M TRYING TO SEE IF I CAN MAKE COMPROMISE HERE THAT IN ADDITION TO THE CEO BEING ABLE TO MAKE CHANGES THAT THOSE CHANGES BE MADE IN CONSULTATION WITH RELEVANT DEPARTMENTS INCLUDING BUT NOT LIMITED TO HOUSING FOR HEALTH, SHERIFF'S DEPARTMENT, AND ANY OTHER RELEVANT DEPARTMENT.

WE STANDARDIZED APPROACH TO HUD COC GRANTS ACROSS DEPARTMENTS, AUTHORIZED JOINT LEGAL REPRESENTATION WITH THE CITY OF SANTA CRUZ ON THE SANTA CRUZ INN PROJECT, AND WE DIRECT STAFF TO HELP DRAFT A LETTER FOR THE CHAIR TO SEND ON BEHALF OF THE BOARD TO OUR CITY, STATE, AND FEDERAL REPRESENTATIVES ON HOW CUTS TO STATE AND FEDERAL FUNDING WILL IMPACT THE COUNTY.

- SECOND - WE HAVE A MOTION FROM SUPERVISOR CUMMINGS AND A SECOND FROM SUPERVISOR, UH, KOENIG.

CAN WE TAKE ROLL CALL VOTE.

- JUST FOR CLARITY CHAIR, OR ACTUALLY MAYBE FOR THE STAFF WAS... DID THAT MOTION CAPTURE ALL ELEMENTS OF THE RECOMMENDED ACTIONS THAT YOU NEEDED US TO APPROVE TODAY? - I THINK SO. - GREAT. THANK YOU.

- AND MONICA, DID YOU, SORRY, SUPERVISOR MARTINEZ DID YOU NEED THAT ONE, THAT LAST BULLET POINT SEPARATED? - THE ONE THAT [INAUDIBLE]. - I WILL...

- WHEN I VOTE, I WILL REFERENCE IT. - OKAY.

- OKAY. THANK YOU.

MADAM CLERK.

- AYE, WITH THE EXCEPTION OF RECOMMENDED ACTION NUMBER FOUR WHERE I'M ABSTAINING ON THE GRANT RELATED TO ENCOMPASS.

- AYE - CUMMINGS. - AYE.

- MARTINEZ.

- THANK YOU. SUPERVISOR KOENIG.

- AYE - AND HERNANDEZ.

- AYE. MOTION PASSES WITH THE EXCEPTION OF ITEM NUMBER FOUR RELATING TO ENCOMPASS WITH SUPERVISOR MARTINEZ.

WE'LL NOW MOVE ON TO THE NEXT AGENDA ITEM NUMBER 10, HOLD THE PUBLIC HEARING CONSIDER THE 2026 GROWTH GOAL REPORT ADOPT A RESOLUTION ADOPTING ANNUAL POPULATION GROWTH GOAL FORWARD 2026, AND FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA FROM CEQA AND TAKE ALL RELATED ACTIONS.

[10. Hold a public hearing to consider the 2026 Growth Goal Report, adopt resolution Adopting an Annual Population Growth Goal for 2026, find that the project is exempt from the California Environmental Quality Act, and take related actions]

I'LL TURN IT OVER TO STEPHANIE HANSEN, ASSISTANT DIRECTOR TO COMMUNITY DEVELOPMENT AND INFRASTRUCTURE, AND FERNANDA DIAS PINI POLICY PLANNER NUMBER 2 FOR THE PRESENTATION - GOOD AFTERNOON CHAIR SUPERVISORS.

WE'LL TRY TO END THIS ON A QUICK NOTE FOR YOU GUYS.

IT'S BEEN A LONG, LONG DAY.

EVERY YEAR THE COMMUNITY DEVELOPMENT AND INFRASTRUCTURE DEPARTMENT COMES BACK WITH THE REPORT ON GROWTH, AND AS REQUIRED BY MEASURE J AND THE CODE, WE, WE RECOMMEND HOW MUCH WE SHOULD SET A GROWTH GOAL FOR THE NEXT YEAR.

SO THAT'S WHAT WE'RE DOING HERE TODAY.

WE ARE RECOMMENDING A GROWTH GOAL FOR NEXT YEAR OF 0.05 FOR THE UNINCORPORATED PORTION OF THE COUNTY.

AND I'M GONNA TURN IT OVER TO FERNANDA TO MAKE A SHORT PRESENTATION TO YOU ALL TODAY.

I THINK IF IT COMES UP.

- WE'RE HAVING A BRIEF TECHNICAL DIFFICULTY WITH THE SLIDES, WE'LL HAVE THEM UP MOMENTARILY.

- ALRIGHT. WHY DON'T YOU GO AHEAD AND GET STARTED AND I'LL CATCH UP.

- ALL RIGHT.

OH, THERE IT IS.

GOOD, GOOD AFTERNOON.

IN 1978, COUNTY VOTERS APPROVED MEASURE J A GROWTH MANAGEMENT MEASURE MEANT TO REGULATE THE CHARACTER, LOCATION, AMOUNT, AND TIMING OF FUTURE LAND USE AND DEVELOPMENT IN SANTA CRUZ COUNTY.

AS PART OF MEASURE J A GROWTH MANAGEMENT SYSTEM WAS ENACTED WHICH REQUIRES THE COUNTY TO ESTABLISH AN ANNUAL POPULATION GROWTH GOAL OR GROWTH RATE TO ADDRESS THE RESOURCE AND PUBLIC SERVICE IMPACTS OF POPULATION GROWTH IN SANTA CRUZ COUNTY.

THE GROWTH RATE IS THEN USED TO CALCULATE AN ANNUAL MAXIMUM NUMBER OF ALLOCATIONS TO BE GRANTED TO NEW MARKET RATE RESIDENTIAL BUILDING PERMITS.

[05:35:03]

AFFORDABLE UNITS AND ACCESSORY DWELLING UNITS OR ADUS ARE EXEMPTED AND DO NOT RECEIVE AN ALLOCATION.

THE GROWTH GOAL REPORT EXAMINES VARIOUS FACTORS USED TO IN ESTABLISHING THE YEAR 2026 GROWTH GOAL.

INCLUDING AN ANALYSIS OF POPULATION GROWTH TRENDS, HOUSING NEEDS, SUCH AS PROGRESS TOWARDS MEETING THE COUNTY'S REQUIRED REGIONAL HOUSING NEEDS ALLOCATION OR RHNA FOR SHORT, AN ADU ANNUAL REPORT AND CURRENT PIPELINE OF MAJOR AND AFFORDABLE HOUSING PROJECTS AS WELL AS THE STATUS OF 2025 MEASURE J RESIDENTIAL LOCATIONS AND POTENTIAL GROWTH IMPACTS.

IN RECENT YEARS THE UNINCORPORATED AREA OF THE COUNTY POPULATION HAS BEEN MOSTLY STAGNANT WITH A SLIGHTLY NEGATIVE GROWTH RATE BASED ON ANNUAL ESTIMATES BY THE CALIFORNIA DEPARTMENT OF FINANCE.

HOWEVER, THE COUNTY OVERALL AND THE STATE OF CALIFORNIA HAVE EXPERIENCED A SMALL POSITIVE GROWTH AND PROJECTIONS FROM THE ASSOCIATION OF MONTEREY BAY GOVERNMENT OR AMBAG AND THE CENSUS, THE LATEST CENSUS DATA INDICATE A STEADY POPULATION INCREASE IS LIKELY TO CONTINUE.

MEASURE J ALSO REQUIRES THAT AT LEAST 15% OF NEW HOUSING UNITS CONSTRUCTED EACH YEAR TO BE AFFORDABLE TO MODERATE AND BELOW MODERATE INCOME HOUSEHOLDS.

ADDITIONALLY, IT REQUIRES DEVELOPERS OF NEW RENTAL PROJECTS TO EITHER PAY AN AFFORDABLE HOUSING IMPACT FEE OR PROVIDE AFFORDABLE RENTAL UNITS.

OVER THE 43 YEARS SINCE MEASURE J WAS FIRST IMPLEMENTED, APPROXIMATELY 24.3% OF ALL HOUSING UNITS PERMIT...

OF ALL HOUSING UNITS PERMITS ISSUED ACCORDING INCLUDING ADUS, HAVE BEEN FOR AFFORDABLE UNITS.

THE GROWTH GOAL REPORT ALSO SUMMARIZES THE STATUS OF 2025 RESIDENTIAL BUILDING PERMIT ALLOCATIONS.

AS A REMINDER, AN ALLOCATION IS A CONVERSION OF THE MAXIMUM NUMBER OF MARKET RATE RESIDENTIAL BUILDING PERMITS THAT CAN BE GRANTED EACH YEAR.

LAST YEAR, A TOTAL OF 373 ALLOCATIONS WERE SET BY THE BOARD.

TEN ALLOCATIONS HAVE BEEN GIVEN OUT AS OF JULY 1ST OF THIS YEAR.

IF THE TREND CONTINUES 20 ALLOCATIONS WILL BE GRANTED BY THE END OF THE YEAR.

DEMAND FOR ALLOCATIONS REMAIN LOW COMPARED TO PREVIOUS DECADES AND STAFF ANTICIPATES THAT THERE WILL BE MORE THAN ENOUGH ALLOCATIONS AVAILABLE FOR THE REMAINDER OF THIS YEAR.

ADDITIONALLY, UNUSED ALLOCATIONS FROM 2025 WILL BE CARRIED OVER TO 2026.

AS THIS GRAPH SHOWS, THERE HAS BEEN MORE THAN SUFFICIENT ALLOCATIONS AVAILABLE TO MEET THE DEMAND TO CONSTRUCT NEW MARKET RATE HOUSING UNITS IN THE PAST 20 YEARS.

PLEASE NOTE THAT ONLY MARKET RATE UNITS ARE SUBJECT TO THE GROWTH GOAL MANAGEMENT SYSTEM AND THEREFORE AFFORDABLE UNITS AND ADUS ARE EXEMPT.

TO SUPPORT AFFORDABLE HOUSING GOALS, THE COUNTY CONTINUES TO EXEMPT AFFORDABLE HOUSING UNITS AND ADUS FROM THE NEED TO OBTAIN PERMIT ALLOCATIONS.

IN ACCORDANCE WITH THE...

AND IN ACCORDANCE WITH THE HOUSING ACT OF 2019 SANTA CRUZ COUNTY WILL CONTINUE TO NOT ENFORCE MEASURE J GROWTH LIMITS ON RESIDENTIAL ALLOCATIONS WITHIN THE AFFECTED AREAS OF THE COUNTY WHILE THE STATUE IS IN PLACE.

AS YOU CAN SEE IN THE MAP IN BLUE IN SANTA CRUZ COUNTY THE AFFECTED AREAS INCLUDE THE FOLLOWING CENSUS, DESIGNATED PLACES LIVE OAK, PASATIEMPO, PARADISE PARK, AND SOQUEL.

STAFF WILL CONTINUE TO TRACK MEASURE J ALLOCATION AND SUBSEQUENT BUILDING PERMIT ISSUANCE IN THESE AFFECTED AREAS FOR REPORTING PURPOSES ONLY.

SO FOR CALENDAR YEAR 2026, STAFF RECOMMENDS THAT THE GROWTH GOAL BE SET UP 0.5%.

MODEST GROWTH POPULATION PREDICTIONS, RECENT UP ZONINGS OF PROPERTIES, HOUSING PROJECTS

[05:40:04]

CURRENTLY IN THE COUNTY'S PERMITTING PIPELINE AS WELL AS CONTINUED STATE LEGISLATION AIMED AT FACILITATING HOUSING PRODUCTION POINT TO A LIKELY INCREASED DEMAND IN THE FUTURE.

MOREOVER, SANTA CRUZ COUNTY LIKE MANY JURISDICTIONS AROUND THE COUNTRY, CONTINUE TO FACE A HOUSING SHORTAGE AND AFFORDABILITY CRISIS.

THE GROWTH RATE OF 0.5% FOR 2026 WOULD ALLOW THE FOR THE COUNTY TO CONTINUE TO PROVIDE ITS FAIR SHARE OF STATEWIDE POPULATION GROWTH AND WOULD NOT CONSTITUTE A LIMITATION ON PROVIDING MUCH NEEDED HOUSING UNITS AND MEETING THE COUNTY'S RHNA GOALS.

THE PROPOSED GROWTH RATE WOULD RESULT IN A TOTAL OF 261 MARKET RATE RESIDENTIAL BUILDING PERMIT ALLOCATIONS FOR 2026, ALLOCATIONS WOULD BE DISTRIBUTED BETWEEN THE URBAN AND RURAL AREAS OF THE COUNTY AT A 75 TO 25 RATIO TO RECOGNIZE THE GREATER POTENTIAL FOR INFILL DEVELOPMENT IN URBAN AREAS SORRY. AND PURSUANT TO CHAPTER 17.4 OF THE SANTA CRUZ COUNTY CODE STAFF RECOMMENDS AS IN PREVIOUS YEARS, THAT UNUSED MARKET RATE ALLOCATIONS FROM 2025 BE CARRIED OVER TO 2026.

THIS WOULD RESULT IN A TOTAL PROJECT PROJECTED TOTAL OF 614 ALLOCATIONS.

ADDITIONALLY, STAFF HAS FOUND THAT THE ESTABLISHMENT OF A 2026 GROWTH GOAL IS EXEMPT UNDER THE CALIFORNIAN ENVIRONMENTAL QUALITY ACT AND A NOTICE OF EXEMPTION HAS BEEN PREPARED AND INCLUDED IN YOUR PACKET.

STAFF, STAFF THEREFORE RECOMMENDS THAT THE BOARD OF SUPERVISORS HOLD A PUBLIC HEARING FOR THE PROPOSED YEAR 2026 GROWTH GOAL, ADOPT A RESOLUTION OF THE BOARD OF SUPERVISORS FOR THE COUNTY OF SANTA CRUZ, ADOPTING THE ANNUAL GROWTH GOAL REPORT FOR 2026, AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA QUALITY ACT PURSUANT TO SUBSECTION 15308 AND SUBSECTION 15061.

AND THIS CONCLUDES THE STAFF REPORT AND WE'RE HAPPY TO ANSWER ANY QUESTIONS.

- THANK YOU FOR THE PRESENTATION.

YOU KNOW, BEING PART OF AMBAG I'M ALSO WE GOT TO SEE SOME OF THESE NUMBERS BEFOREHAND AND I'M JUST ALWAYS SURPRISED HOW MUCH WORK GOES INTO IT FROM ALL THE DEPARTMENTS AND ALL THE CITIES AND COUNTIES FOR THIS '26 GROWTH GOAL.

WITH THAT, I'M GONNA TAKE IT OUT TO THE PUBLIC TO SEE IF ANYONE WISHES TO ADDRESS US ON THIS ITEM.

SEEING NONE, ANYONE ONLINE? - YES, CHAIR.

- ATHENA, YOUR MICROPHONE IS NOW AVAILABLE.

THE SPEAKER HAS PUT THEIR HAND DOWN.

I SEE NO FURTHER SPEAKERS ONLINE CHAIR.

- NO MORE.

- NO ADDITIONAL SPEAKERS. THANK YOU.

- GREAT.

ATHENA'S NOT ABLE TO GET ON? OKAY.

- SHE'S PUT HER HAND DOWN.

I BELIEVE SHE DOES NOT WANT TO SPEAK.

- THANK YOU. WITH THAT, I'LL BRING IT BACK TO THE BOARD.

ANY COMMENTS, QUESTIONS, OR ENTERTAIN A MOTION? - I'LL MOVE THE RECOMMENDED ACTIONS.

- SECOND.

- WE HAVE A MOTION FROM SUPERVISOR KOENIG AND A SECOND FROM SUPERVISOR DE SERPA.

MADAM CLERK, IF WE CAN PLEASE HAVE A ROLL CALL.