[00:00:09]

-  GOOD MORNING.

I'D LIKE TO CALL TO ORDER THE FEBRUARY 24, 2026,

[CALL TO ORDER]

WILL THE CLERK PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ.

- PRESENT.

- CUMMINGS. - HERE.

- KOENIG. - HERE.

- DE SERPA. - PRESENT.

- AND MARTINEZ. - PRESENT.

I'D LIKE TO START OFF BY SHARING THAT IF ANYBODY FEELS MORE COMFORTABLE PARTICIPATING IN THIS MEETING IN SPANISH, WE DO HAVE TRANSLATION AVAILABLE.

UM, WE HOPE THAT SPANISH SPEAKERS WILL CONTACT OUR OFFICE, BEFOREHAND, SO WE CAN COORDINATE THAT WITH YOU.

UM, YOU CAN DO THAT BY VISITING THEIR OFFICE.

SENDING AN EMAIL TO COBSTAFF@SANTACRUZCOUNTYCA.GOV OR CALLING OUR OFFICE AT 831-4542-323.

UM, BUT WE ALSO HAVE TRANSLATION AVAILABLE NOW IF THAT WAS REQUIRED.

SO, UM, PLEASE DO LET US KNOW.

I'LL NOW MOVE ON TO A MOMENT OF SILENCE.

[MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE]

- THANK YOU, CHAIR.

UM, I'D LIKE TO DEDICATE TODAY'S MOMENT OF SILENCE FOR THE LATE REVEREND JESSE JACKSON, WHO DIED ON FEBRUARY 17TH, 2026.

UM, AS A CIVIL RIGHTS ACTIVIST AND LEADER, UM, JESSE JACKSON SPENT HIS LIFE FIGHTING AGAINST DISCRIMINATION AND FIGHTING FOR EQUALITY, JUSTICE, AND EQUAL RIGHTS, UM, AND FOR PEACE IN OUR WORLD.

AND DURING A TIME WHEN, UM, MANY OF OUR CIVIL RIGHTS ARE UNDER THREAT, IT'S REALLY IMPORTANT FOR US TO REMEMBER AND REFLECT ON THOSE INDIVIDUALS WHO THROUGHOUT THEIR LIVES AND THROUGHOUT HISTORY HAVE FOUGHT FOR CIVIL RIGHTS, UH, FOR JUSTICE, PEACE, AND EQUALITY.

- THANK YOU, SUPERVISOR CUMMINGS.

ANYBODY ELSE? SEEING NONE, PLEASE JOIN ME IN A MOMENT OF SILENCE.

[SILENCE] THANK YOU.

PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE.

- I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

- I'D NOW LIKE TO SEE IF THERE ARE ANY LATE ADDITIONS

[CONSIDERATION OF LATE ADDITIONS TO THE AGENDA; ADDITIONS AND DELETIONS TO CONSENT AND REGULAR AGENDAS]

- THERE ARE NO ADDITIONS OR CORRECTIONS.

- THANK YOU.

I'D NOW LIKE TO ASK MY COLLEAGUES

[ANNOUNCEMENT BY BOARD MEMBERS OF ITEMS REMOVED FROM CONSENT TO REGULAR AGENDA]

ALL RIGHT.

SEEING NONE, WE WILL MOVE ON TO ITEM NUMBER FIVE,

[PUBLIC COMMENT]

I'D LIKE TO INVITE THE PUBLIC TO MAKE PUBLIC COMMENT ON ANY ITEMS ON THE CONSENT OR CLOSED AGENDA OR ANY SUBJECT MATTER WITHIN THE JURISDICTION OF THE BOARD.

IF YOU'D LIKE TO SPEAK ON AN ITEM THAT'S ON TODAY'S REGULAR AGENDA, WE'RE GONNA ASK THAT YOU PLEASE HOLD ON TO THAT COMMENT AND WE WILL HEAR IT WHEN THAT AGENDA ITEM IS HOLD, IS HELD.

UM, AGAIN, IF YOU'D LIKE TO MAKE A COMMENT IN SPANISH, PLEASE LET US KNOW AND WE'LL PROVIDE TRANSLATION FOR YOU.

UM, AND WITH THAT, I'D LIKE TO SEE HOW MANY PEOPLE ARE HERE TO SPEAK FOR OUR PUBLIC COMMENT.

UM, I'D, I'D LIKE TO ASK YOU TO START A LINE, UM, BEHIND THIS GENTLEMAN SO THAT WAY WE CAN MOVE THROUGH THE LINE.

UM, MADAM CLERK, HOW MANY PEOPLE ARE ON THE CALL WHO'D LIKE TO SPEAK TODAY? IF YOU'RE ON THE CALL, PLEASE RAISE YOUR ZOOM BUTTON TO RAISE YOUR HAND OR DIAL STAR NINE IF YOU'RE ON THE PHONE SO WE CAN SEE THAT YOU'RE READY.

- CHAIR, WE CURRENTLY HAVE NOBODY WITH THEIR HANDS RAISED TO SPEAK.

- THANK YOU.

GIVEN THAT, UM, MADAM CLERK, I'D LIKE TO SET THE COMMENT PERIOD FOR TWO MINUTES AND WELCOME. GOOD MORNING.

- YEAH. HELLO. MY NAME'S JAMES EWING WHITMAN.

AT THE END OF THIS I'M GOING TO [INAUDIBLE]...

- I DON'T THINK YOUR MIC IS ON.

- JUST WAIT ONE SECOND.

- WHAT'S UP. - I'LL HAVE YOU TAKE, TAKE A MOMENT SO WE CAN GET THE TECH WORKING FOR YOU.

- HOPEFULLY, I'M RECORDING IT.

YES. OKAY.

HEY, GOOD MORNING. MY NAME IS, UH, JAMES EWING WHITMAN.

NICE TO SEE ALL OF YOU.

SURE IS EASIER UP ON THE FIFTH FLOOR.

AT THE END, I'M GONNA PLUG A, UH, FIVE-STAR HOTEL THAT I'VE STAYED AT TWICE, THREE NIGHTS IN THE PAST 30 DAYS.

THEY LET ME OUT.

UH, WELL, I'M RECOVERING FROM A MAJOR SURGERY LESS THAN FIVE DAYS AGO.

UH, ANYWAY, I DON'T KNOW WHAT TO TITLE THIS.

UH, I'M REMINDED OF THE FILM OR LARGELY OUR SOCIETY, THE GOOD, THE BAD, OR THE UGLY.

YOU KNOW, I RECENTLY WAS LED TO WATCH A JOHNNY CARSON SHORT

[00:05:01]

IT'S AMAZING HOW DECEPTIVE SOME OF OUR STUFF IS.

AMAZING THING.

SO, UM, I JUST HAVE TO WONDER WHAT TYPES OF INDIVIDUALS MAKE UP THE JESUITS, THE ZIONISTS, THE BOLSHEVIKS OR THE NAZIS BESIDES AT LEAST 60% OF OUR CURRENT CONGRESS AND SENATE.

UM, IT REALLY IS KIND OF CRAZY.

YOU LOOK AT WHAT HAPPENED DURING THE BOLSHEVIK REVOLUTION.

SOME SAY 60 MILLION CHRISTIANS WERE GENOCIDED DURING THAT PERIOD ON, WHAT IS THAT, 1917 TO 1935? WHY HAVE THE CHRISTIANS IN THE UNITED STATES FORGOT THAT THIS COUNTRY WAS FOUNDED ON CHRISTIAN MORALS, AND DO THEY NOT KNOW HISTORY OR THEY'RE JUST NOT WANTING TO STEP UP.

I DON'T REALLY KNOW.

SO, I'M ACTUALLY HAPPY TO BE HERE FOR LOTS OF REASONS AND, UM, I'M GLAD TO HAVE THE RECOVERY THAT I AM.

UH, AND IT'S TOTAL COMEDY.

I GOT A CALL YESTERDAY AND AFTER TALKING BACK WITH MONTEREY VASCULAR, THEY SAID YOU HAVE AN APPOINTMENT TOMORROW AT 2:00 P.M.

I'M LIKE, WOW, THAT'S RIGHT WHEN PUBLIC COMMENTS START IN THE CITY COUNCIL OF SANTA CRUZ.

AND YOU HAVE OPPORTUNITIES TO SPEAK FOR THREE MINUTES, SEVERAL TIMES BUT OUTTA RESPECT FOR THAT SURGEON, THAT'S WHERE I'M GONNA BE.

ANYWAY, NICE TO SEE ALL OF YOU.

- THANK YOU. - WELCOME.

- GOOD MORNING, BOARD OF SUPERVISORS, CHAIR MARTINEZ.

MY NAME IS DANA WAGNER.

I AM THE DIRECTOR OF MEALS ON WHEELS A PROGRAM OF COMMUNITY BRIDGES.

I'M HERE TODAY TO THANK THIS BOARD FOR THE PROCLAMATION HONORING MEALS ON WHEELS 50TH ANNIVERSARY.

MEALS ON WHEELS STARTED IN 1976 AS THE GOLDEN AGE NUTRITION PROGRAM.

IN OUR 50-YEAR HISTORY, WE HAVE SERVED OVER 10 MILLION MEALS TO VULNERABLE SENIORS IN THE COUNTY.

I THANK THIS BOARD FOR RECOGNITION OF THIS MILESTONE, TO SUPERVISOR DE SERPA FOR AUTHORING THE PROCLAMATION, TO SUPERVISOR HERNANDEZ AND REPRESENTATIVES FROM SUPERVISORS, DE SERPA AND CUMMINGS OFFICES FOR ATTENDING OUR CELEBRATION OF 50 YEARS AT THE CHAMINADE ON FEBRUARY 13TH.

WHERE BOTH FORMER SECRETARY LEON PANETTA AND CONGRESSMAN JIMMY PANETTA SPOKE TO ACKNOWLEDGE THE IMPORTANCE OF THIS VITAL SAFETY NET PROGRAM.

ON BEHALF OF THE 1600 SENIORS WE SERVE ANNUALLY, I THANK THIS BOARD FOR RECOGNIZING OUR CONTRIBUTION TO THE HEALTH OF OUR COMMUNITY.

AS SENIORS ARE THE FASTEST GROWING SEGMENT OF OUR COMMUNITY, THE NEED FOR PROGRAMS LIKE MEALS ON WHEELS IS EVER PRESENT.

MY HOPE IS THAT MEALS ON WHEELS WILL BE AROUND FOR ANOTHER 50 YEARS HAVING PROVIDED ANOTHER 10 MILLION MEALS TO DESERVING OLDER ADULTS.

I APPEAL TO THIS BOARD TO HELP ME MAKE THAT POSSIBLE, AND I THANK YOU FOR YOUR SUPPORT AND ACKNOWLEDGEMENT.

THANK YOU VERY MUCH.

[APPLAUSE] - GOOD MORNING.

- GOOD MORNING.

CHAIR MARTINEZ, BOARD OF SUPERVISORS, UH, MY NAME IS JIM DALE.

UM, I'M HERE, UM, I'M THE ASSISTANT DIVISION DIRECTOR OF EMPLOYMENT AND BENEFIT SERVICES FOR THE HUMAN SERVICES DEPARTMENT AND I'M HERE ON BEHALF OF THE HUMAN SERVICES DEPARTMENT AND, UM, EBSD, EMPLOYMENT AND BENEFIT SERVICES, SPECIFICALLY TO THANK YOU FOR AND RECEIVE TWO PROCLAMATIONS.

SO, THE FIRST IS THE, UH, PROCLAMATION FOR FEBRUARY 2ND, THE WEEK OF, UM, TO CELEBRATE ELIGIBILITY PROFESSIONALS WEEK.

AND AS MANY OF YOU KNOW, UM, ELIGIBILITY PROFESSIONALS HERE CALLED BENEFIT REPRESENTATIVES ARE THE BACKBONE IN TERMS OF PROVIDING GREAT SERVICE TO OUR COMMUNITY, MAKING SURE THEY'RE ELIGIBLE FOR MEDI-CAL, CALFRESH, GENERAL ASSISTANCE CALWORKS AND WITHOUT THEM, OUR COMMUNITY WOULD BE, UM, MUCH WEAKER OFF AND WE APPRECIATE THE RECOGNITION AND-AND SUPPORT AROUND THEIR, UM, ELIGIBILITY PROFESSIONALS WEEK FOR FEBRUARY 2ND.

THIS WEEK WE'RE ACTUALLY CELEBRATING THE, UM, THE EMPLOYMENT AND TRAINING SPECIALIST WEEK AND THE EMPLOYMENT AND TRAINING SPECIALISTS, UH, PROCLAMATION IS IN SUPPORT OF THOSE THAT PROVIDE SUPPORT TO OUR CALWORKS FAMILIES AND MAKING SURE THAT THEY HAVE THE EMPLOYMENT AND TRAINING SUPPORTS TO EITHER GO BACK TO WORK TO GET THE TRAINING AND EDUCATION THEY NEED TO ENGAGE IN WORK SO THEY CAN SUPPORT THEIR FAMILIES.

SO, WE REALLY APPRECIATE THE SUPPORT, THE PROCLAMATIONS AND THE RECOGNITION THAT WE RECEIVE, UM, FROM THE BOARD.

AND I WILL SAY WITH MY EXTRA TIME, UH, HONOR TO THE MEALS ON WHEELS PROGRAM, IT WAS MY FIRST VOLUNTEER EXPERIENCE, AND IT SET ME ON MY PATH.

SO, CONGRATULATIONS TO 'EM ON THEIR 50TH YEAR.

- GOOD MORNING, CHAIR, SUPERVISORS, CAO COBURN AND STAFF.

MY NAME IS DAVID DAVIS, AND I WORK AT THE HOMELESS PERSONS HEALTH PROJECT.

I'M HERE TODAY TO COMMENT ON CONSENT AGENDA ITEM NUMBER 36 IN WHICH YOU'RE SCHEDULED TO APPROVE AN ADDITIONAL $501,846

[00:10:03]

ANOTHER HALF MILLION FROM THE GENERAL FUND WAS GIVEN TO THEM TO PURCHASE THE SANTA CRUZ INN TO MAKE IT A SHELTER.

I DO NOT DISAGREE WITH THE PROGRAMS BEING FUNDED, JUST THE CHOICE OF RECIPIENTS.

ALL THE WHILE HOUSING MATTERS IS REMOVING THE MOST CRITICAL SERVICES FROM THE HOMELESS POPULATION, ACCESS TO BATHROOM, SHOWERS AND MAIL SERVICES FOR AROUND 1700 PEOPLE BY THEIR OWN COUNT.

AT THE DECEMBER MEETING, SUPERVISOR CUMMINGS STATED THE BOARD CANNOT CONTROL HOW HOUSING MATTERS RUNS THEIR BUSINESS HOWEVER, YOU DO CONTROL WHO RECEIVES FUNDING.

THERE ARE MANY NONPROFITS CAPABLE OF DOING THE SAME WORK AS HOUSING MATTERS.

YOU CAN ALSO MAKE PROVIDING BATHROOMS AND SHOWERS AS PART AND PARCEL OF THE ADDITIONAL FUND.

I DO NOT THINK YOU UNDERSTAND EVERYTHING THAT POTENTIALLY CAN AND WILL HAPPEN ONCE THESE SERVICES END.

HAVE YOU BEEN PROVIDED WITH INPUT FROM THE STAFF AT HPHP, PUBLIC HEALTH AND VECTOR CONTROL ON THE IMPACT OF THE HUMAN WASTE THAT WILL LITERALLY FLOW, FLOOD THE STREETS AS A RESULT OF THIS DECISION.

I KNOW YOU TASKED HOUSING FOR HEALTH TO COME BACK WITH RECOMMENDATIONS NEXT MONTH, BUT THEY'VE BEEN AWARE OF THIS ISSUE FOR OVER A YEAR, AND NOTHING HAS BEEN DECIDED ON.

I ASK THAT YOU DELAY VOTING ON THIS MATTER UNTIL YOU, YOU HAVE ALL THE INFORMATION NECESSARY TO MAKE AN INFORMED DECISION SO THAT YOUR CONSTITUENTS, THE PEOPLE WHO ARE EXPERIENCING HOMELESSNESS AND ALL THE OTHER NON-PROFITS IN THE COUNTY, DON'T HAVE TO PICK UP THE PIECES.

THANK YOU.

- THANK YOU.

- THANK YOU. BECKY STEINBRUNER.

I'D LIKE TO SUPPORT WITH THE GENTLEMAN BEFORE ME JUST SAID, I HOPE YOU WILL RESEARCH THIS AND HOLD OFF ON FUNDING.

I... TO THAT END, UH, CONSENT AGENDA 33, UH, BRINGING UP TO FOUR, OVER $4 MILLION FOR THE CAMP RECOVERY FOR DRUG ADDICTION.

ITEM NUMBER 34, BRINGING UP TO ALMOST $9 MILLION TO ENCOMPASS FOR SUBSTANCE ABUSE TREATMENT.

I ASK YOU TO DO A PERFORMANCE AUDIT, HOW ARE THESE NON-PROFITS ACTUALLY MAKING A DIFFERENCE AND ARE THEY MAKING A DIFFERENCE? AND PLEASE CONSIDER, UM, UH, REQUIRING THAT THEY DO A ONE YEAR PILOT OF IBOGAINE FOR ACTUALLY TREATING DRUG ADDICTION.

IT IS BEING DONE IN OTHER PLACES.

THERE'S A CLINICAL STUDY JUST COMPLETED AT STANFORD UNIVERSITY.

I WROTE THIS TO YOU IN THE PUBLIC COMMENT FOR THIS ITEM.

I WANT TO SAY THAT I HEARD NOTHING ANNOUNCED IN SPANISH AT THE BEGINNING OF THIS MEETING TO ALLOW PEOPLE WHO ARE NOT ENGLISH SPEAKERS TO KNOW THAT THEY HAVE TO ASK FOR TRANSLATION.

STOP THAT.

YOU'VE GOT TO, YOU'VE GOT TO MAKE AN ANNOUNCEMENT IN SPANISH SO THAT PEOPLE WHO DO NOT UNDERSTAND ANY OF WHAT YOU AND I ARE SAYING HERE, UNDERSTAND THAT THEY CAN ASK FOR HELP.

I ASKED FOR, UH, AUTOMATIC TRANSLATION, I WAS TOLD THAT IT'S TOO EXPENSIVE.

IT'LL HAVE TO BE, UH, FOUND MONEY FOR IN THE BUDGET HEARINGS.

THE CITY OF WATSONVILLE DOES IT.

WHY CAN'T THE COUNTY OF SANTA CRUZ DO IT? YOU CAN MAKE AN ANNOUNCEMENT IN SPANISH.

IT DOESN'T COST ANYTHING.

I WANT TO ALSO SAY THAT THE BATTERY ENERGY STORAGE SYSTEM, UH, ORDINANCE IS WOEFULLY, UM, BEHIND IN LETTING PEOPLE KNOW WHEN WE'RE GOING TO BE ABLE TO COMMENT.

THE APPROVED DRAFT VERSION ONLINE DOES NOT INDICATE ANY CHANGES MADE AS ASKED BY THE BOARD ON JANUARY 13TH.

I DO NOTE ON PAGE 15, RADIO OPERABILITY PROGRAM TO BE FUNDED...

- THANK YOU.

- ... BY THIS.

YOU SHOULD USE PROP 172 MONEY INSTEAD...

- THANK YOU. - ... OF PUTTING [INAUDIBLE] THANK YOU.

- GOOD MORNING. BEFORE MY TIME STARTS, CAN I PASS [INAUDIBLE].

- YOU COULD HAND THEM TO HER.

- LOOK, THESE ARE ALL MY FRIENDS.

I'M SPEAKING ABOUT, UH, THE PROPERTY, THE KNIFE PROPERTY, AND, UM, WHAT IS GOING ON THERE WITH ALL THIS STUFF.

I DON'T HAVE TWO MINUTES TO EXPLAIN EVERYTHING THAT I'VE DISCOVERED ON THE WEBSITE ABOUT THIS PROPERTY, THAT, THAT HAS NOT BEEN CON-, YOU KNOW, THAT HAS NOT BEEN STUDIED.

UM, THESE FROGS RIGHT HERE AND MY FRIENDS, THESE ARE THE ONES SPEAKING FOR THIS PROPERTY.

UM, LIKE I SAID, I DON'T HAVE ENOUGH TIME TO EXPLAIN EVERYTHING THAT'S GOING ON WITH THIS PROPERTY.

I'VE ASKED FOR MORE TIME.

UM, I WOULD LIKE TO HAVE THIS DECISION TABLED UNTIL I CAN TALK TO SOMEBODY.

UM, I'VE BEEN ON THE PROPERTY 25 YEARS.

I KNOW ABOUT THE FLOODING, I KNOW HOW IT FLOODS.

[00:15:03]

UM, THERE'S A LOT OF UNKNOWN STUFF OUT HERE, AND THESE FROGS ARE SPEAKING, UM, YOU KNOW, THEY'RE THERE FOR A REASON AND, UH, IT'S, YOU GUYS ARE TRYING TO PUSH SOMETHING THROUGH THAT SHOULDN'T BE PUSHED THROUGH UNTIL EVERYTHING IS STUDIED. - HELLO FROGIES.

[CHUCKLES] - MY FROGS.

UM, BUT YOU GUYS ARE TRYING TO PUSH SOMETHING THROUGH THAT SHOULDN'T BE PUSHED THROUGH UNTIL AN ACTUAL STUDY IS DONE ON THIS PROPERTY.

UM, IT'S JUST, IT'S, IT'S JUST, IT'S KILLING ME.

YOU KNOW, I, I, I USED TO GETS THESE FROGS OUTTA THIS LITTLE AREA AND TAKE 'EM TO MY KIDS' SCHOOL 25 YEARS AGO TO WATCH 'EM, THE POLLYWOGS TURN INTO FROGS, YOU KNOW, AND-AND FOR THIS PROJECT TO COME THROUGH.

AND, UM, MR. NYE HAS HAD A OPEN TRENCH THROUGH HIS PROPERTY FOR OVER 60 YEARS, WHICH HE'S TRIED TO FILL IN, YOU KNOW, HAVE PIPES PUT IN.

AND HE'S BEEN TOLD THIS WATERWAY IS PROTECTED AND HE CAN'T DO THAT.

BUT YET THE BUILDERS WANT TO COME IN AND TAKE THIS WATER AND RUN IT DOWN TO RODEO GOLTEN AND SHUT OFF THIS WATERWAY THAT GOES THROUGH HIS PROPERTY WHERE THESE FROGS AND EVERYTHING ELSE ARE.

AND, UH, LIKE I SAID, I HAVE, I HAVE WAY MORE TO SAY THAN JUST THE TWO MINUTES UP HERE.

AND, UH, I WOULD LIKE TO HAVE MORE TIME.

I'D LIKE TO, FOR YOU GUYS TO, UH, LISTEN TO WHAT I HAVE TO SAY AND, AND, AND, YOU KNOW, UM, AT LEAST TAKE INTO ACCOUNT.

UM, BUT THERE'S A LOT, A LOT OF THINGS GOING ON HERE THAT ARE NOT SHOWN.

UM, SO THESE PICTURES ARE, UM, ONE IS A PROPERTY THAT, UH, YOU KNOW, WITH THE AUXILIARY LINES THAT WAS TAKEN AND THIS PICTURE HERE IS FROM 19, UH, 51 OR WHATEVER IT IS.

OKAY. THIS LINK PLEASE.

AND IT SHOWS THE DRAINAGE DITCH GOING THROUGH HERE...

- THANK YOU. - ...AT THAT TIME, OKAY? - THANK YOU. - THANK YOU.

[APPLAUSE] - HI, UH, I'M SEAN DOHERTY AND I'M HERE TO COMMENT ON THE EMERGENCY SHELTERS.

WE HAD SOME VERY EXTREME WEATHER LAST WEEK.

UH, WE, WE ALL EXPERIENCED IT.

IT WAS SO COLD IN THE MORNINGS THAT EVEN WHEN I CRANKED UP ALL THE RADIATORS IN MY HOUSE, UH, MY SON AND I HAD TO PUT A THICK BLANKET ON OURSELVES WHEN WE WERE SITTING ON THE, ON THE COUCH.

UM, AND THERE WERE A LOT OF PEOPLE THAT WERE OUTSIDE IN THAT.

THERE WERE SHELTERS INP-INPLACE.

WE, WE HAD STAFF, AND YET THOSE SHELTERS WEREN'T OPEN.

I THINK THAT, UH, WE NEED TO RELAX THE CRITERIA FOR OPENING THEM I THINK WE NEED TO EXTEND THE HOURS YOU KNOW, YOU KNOW, THEY CLOSE AT 8:00 A.M.

IT'S STILL REALLY COLD AT, AT 8:00 A.M.

AND WE NEED TO DO A BETTER JOB OF INFORMING, UH, THE POPULATION THAT NEEDS THOSE SHELTERS, WHERE THOSE SHELTERS ARE, UM, WHEN THEY'RE OPEN.

ALSO, SOME OF THEM WERE DOUBLE BOOKED.

THERE, THERE WAS ONE SHELTER THAT WASN'T AVAILABLE BECAUSE THERE WAS A BASKETBALL GAME.

SO I THINK WE NEED TO LOOK INTO, I KNOW THIS PROBABLY SOUNDS LIKE I'M ASKING FOR A PONY, BUT WE GOTTA GET SOME PERMANENT HOUSING FOR THESE PEOPLE.

AND I, I KNOW THAT THE STATE HAS SPENT OVER $24 BILLION OVER THE COURSE OF FIVE YEARS TO DEAL WITH HOMELESSNESS, AND YET OUR HOMELESS POPULATION HAS INCREASED.

UM, I, I HOPE THAT THIS BOARD IS LISTENING TO ACTIVISTS WITH WITHIN, UM, THE, THE HOMELESS COMMUNITY, LIKE THE, THE HOMELESS UNION, FOR EXAMPLE, LISTENING TO THEM FOR IDEAS ON, ON HOW THIS PROBLEM CAN BE SOLVED IN A MORE COST EFFECTIVE WAY.

I THINK OUR CURRENT SYSTEM OF NONPROFITS THAT HAVE CEOS MAKING OVER $200,000 A YEAR AND OTHER EXECUTIVES IS NOT THE RIGHT WAY FORWARD.

IT'S, IT'S WASTEFUL.

UH, WE, WE CAN'T BE SPENDING $500,000 TO A MILLION DOLLARS PER UNIT TO HOUSE PEOPLE.

WE COULD BE DOING SOMETHING FOR JUST A FRACTION OF THAT.

THANK YOU.

- GOOD MORNING. I'M SUSAN FRANKLIN.

I LIVE IN THE BEACHCOMBER MOBILE HOME PARK THAT IS AFFECTED BY THE, UM, PENDING, UH, PROJECT THAT IS BEING DISCUSSED TODAY.

UM, AND I HAVE SOMETHING COMPLETELY DIFFERENT THAT I WAS PLANNING TO SAY UNTIL I LISTENED TO ALL THE PREVIOUS PEOPLE TALKING ABOUT THE HOMELESS SITUATION IN SANTA CRUZ.

THE MEALS ON WHEELS PROGRAM, THE AFFORDABLE HOUSING, AND YET WE'RE, WE'RE HERE TODAY TO TALK ABOUT, UH, 100 UNITS THAT COST A MINIMUM OF $1,200,000 TO ME, THAT'S NOT AFFORDABLE.

THEY LOOKED INTO A POSSIBILITY OF ADDING SOME ADDITIONAL, UM, AFFORDABLE HOUSING WITHIN THAT UNIT, BUT IN ORDER TO QUALIFY FOR THAT AFFORDABLE HOUSING, YOU HAVE TO MAKE $180,000 PER YEAR.

THERE ARE MANY PEOPLE IN SANTA CRUZ THAT CANNOT AFFORD THAT.

UM, I FEEL FORTUNATE THAT I WAS ABLE TO SCRAPE TOGETHER ENOUGH MONEY AND BE AN, UH, LOW INCOME PERSON TO BE ABLE TO BUY THE HOME THAT I HAVE, BUT YET THAT WAS OVER $350,000.

THAT'S NOT AFFORDABLE IN MANY PEOPLE'S EYES.

SO I JUST IMPLORE YOU TO THINK ABOUT THIS, THIS PROJECT THAT'S COMING UP NOT ONLY DOES NOT REALLY APPLY

[00:20:01]

IT AFFECTS OUR, ESPECIALLY OUR PARKING IN THAT AREA.

THERE'S NO PARKING AVAILABLE TO THE PEOPLE NOW, AND YET WE'RE GONNA BRING IN A HUNDRED UNITS THAT HAVE THREE AND FOUR BEDROOM HOUSES, UH, THREE AND FOUR BEDROOMS, TWO GARAGES, NOT EVEN A CARPORT OR A, OR A DRIVEWAY TO PARK THOSE CARS IN OTHER THAN THEIR TWO CARS THAT THEY PUT IN THE GARAGE.

SO I JUST, UH, IMPLORE YOU TO DO SOME MORE THINKING ABOUT THIS PROJECT BEFORE IT'S APPROVED AND THINK ABOUT THE PEOPLE THAT REALLY NEED THE ASSISTANCE IN SANTA CRUZ COUNTY.

WE NEED SOME AFFORDABLE HOUSING AND NOT MILLION DOLLAR PROPERTIES.

THANK YOU.

[APPLAUSE] - EXCUSE ME, MA'AM, ARE YOU ALSO HERE TO TALK ABOUT THE SAME PROJECT? - YES.

- UM, I WANTED TO LET YOU AS WELL AS THE PUBLIC KNOW THAT RIGHT NOW WE'RE HEARING COMMENTS ON THE CONSENT AGENDA, WHICH IS EVERYTHING THAT'S NOT ON THE REGULAR AGENDA.

- I'LL WAIT . - THAT ITEM WE WILL BE HEARING UM, WE, WE'LL RECEIVE A FULL PRESENTATION ON IT AND THERE'LL BE TIME FOR PUBLIC COMMENT.

- OKAY.

- IF YOU ARE ABLE TO STAY FOR THAT, I WOULD ENCOURAGE YOU TO MAKE YOUR COMMENT THEN.

OTHERWISE I'D LIKE WELCOME YOU TO MAKE IT NOW AS WELL.

- I APOLOGIZE.

- NO WORRIES, [LAUGH]. IT'S OKAY.

IT'S VERY CONFUSING.

IT'S NOT SCHEDULED, YEAH? NO.

ANYBODY FURTHER IN THE ROOM WHO'D LIKE TO MAKE PUBLIC COMMENT ON THE CONSENT AGENDA OR ANY ITEM THAT'S NOT ON THE REGULAR AGENDA? SEEING NONE, I'LL RETURN IT TO THE CLERK TO SEE IF THERE'S ANYBODY ONLINE.

- YES, CHAIR. WE DO HAVE CALLERS.

- THANK YOU.

- EXCUSE ME. I DON'T REALLY UNDERSTAND THE DIFFERENCE BETWEEN THESE THINGS ARE NOT CONSENT FOR THE [INAUDIBLE] SUPERVISOR, BOARD OF SUPERVISORS MEETING.

- UM, SIR, I, I'M, WE'RE RIGHT NOW WE'RE HEARING PUBLIC COMMENT FROM THE CALL FROM THE CALLERS.

THANK YOU.

- CALLER 833. YOUR MIC IS NOW AVAILABLE.

AND JUST A REMINDER, IT IS STAR SIX SEVEN TO MUTE OR UNMUTE.

AGAIN, THAT IS THE GUEST WITH THE DIGITS ENDING 833.

YOUR MICROPHONE IS NOW AVAILABLE.

[SILENCE] SEEMS LIKE THEY'RE HAVING TROUBLE CONNECTING.

I'M GONNA GO ON TO THE NEXT CALLER - WHILE YOU BRING UP THE NEXT CALLER.

I'LL GO AHEAD AND MAKE AN ANNOUNCEMENT.

UM, FOR THOSE WHO ARE NEW TO THE ROOM, WE ARE CURRENTLY HEARING GENERAL PUBLIC COMMENT.

UM, THIS IS FOR ITEMS ON THE CONSENT AGENDA OR REALLY ANY ITEM THAT YOU WOULD LIKE TO SPEAK ON THAT'S NOT ON OUR REGULAR AGENDA.

IF YOU'D LIKE TO LOOK AT OUR REGULAR AGENDA, THAT IS ITEMS NUMBER SEVEN THROUGH 11.

UM, AND SO THOSE ARE THE ITEMS THAT WILL BE HEARD INDIVIDUALLY AND WE'LL HAVE TIME FOR PUBLIC COMMENT ON EACH OF THOSE.

UM, OTHERWISE THIS WOULD BE THE TIME TO MAKE PUBLIC COMMENT.

UM, WE ARE CURRENTLY HEARING PUBLIC COMMENT FROM PEOPLE WHO ARE ONLINE.

- CAROL, YOUR MICROPHONE IS NOW AVAILABLE.

- GOOD MORNING. THIS IS CAROL BJORN AND, UM, I JUST WANTED TO REITERATE WHAT A COUPLE OF THE EARLIER SPEAKERS SAID.

UM, I BELIEVE IT WAS DAVID DAVIDSON THAT WAS SPEAKING ABOUT AN AGENDA ITEM ON THE CONSENT AGENDA.

UM, WHICH IT SOUNDED TO ME FROM HIS COMMENT REALLY SHOULD BE REMOVED FROM CONSENT.

IT SOUNDED LIKE IT'S A HUGE PUBLIC HEALTH ISSUE THAT HE INDICATED.

UM, AND IT'S REALLY WORTH THE TIME TO REMOVE THAT FROM THE CONSENT AGENDA AND TAKE THE TIME TO, UM, MAKE THE RIGHT DECISION THERE AND NOT RUSH IT.

SO I WOULD ENCOURAGE YOU TO DO THAT.

UM, SECONDLY, I WANTED TO, UH, REITERATE WHAT, WHAT BECKY WAS TALKING ABOUT.

UM, IT'S REALLY CURIOUS WHY PROBLEMS DON'T GET SOLVED.

UM, LIKE PARTICULARLY THE HOMELESS PROBLEM.

SO MUCH MONEY GOES TOWARD HOMELESSNESS AND THE PROBLEM DOESN'T GET SOLVED AND IT REALLY MAKES YOU WONDER WHY.

SO REALLY THE SOLUTION IS LIKE, LET'S DO SOME AUDITS.

LET'S FIND OUT WHAT'S WORKING, WHAT'S NOT WORKING.

SO WE LITERALLY CAN SOLVE THE, THE PROBLEM.

AND AGAIN, IT'S A, IT'S A HEALTH, IT'S A PUBLIC HEALTH ISSUE.

IT'S A DIRECT PUBLIC HEALTH ISSUE AS WELL.

AND IT'S A COMPASSION ISSUE.

UM, IT'S SAD, IT'S, IT'S TRULY SAD THE WAY, UM, SOME PEOPLE ARE LIKE FORCED TO LIVE.

UM, SO I WOULD, I WOULD ENCOURAGE YOU TO DO THE NECESSARY AUDITS.

LET'S FIND OUT WHERE THE MONEY IS GOING AND LET'S FIND OUT THE SOLUTION.

I THINK EVERYBODY HERE WOULD REALLY SUPPORT THAT.

THANK YOU SO MUCH.

[00:25:03]

AGAIN, AS A REMINDER, IT IS STAR SEVEN SIX TO MUTE OR UNMUTE.

SEEMS THEY'RE HAVING TROUBLE CONNECTING CHAIR.

- STAR SEVEN SIX.

- [INAUDIBLE] STAR SIX.

STAR SEVEN SIX TO MUTE OR UNMUTE.

IT LOOKS LIKE THEY'RE HAVING TROUBLE CONNECTING CHAIR.

WE HAVE NO FURTHER SPEAKERS.

- MAYBE YOU COULD SAY IT IN SPANISH.

- CAN YOU CONFIRM THAT IT'S STAR SIX OR STAR SEVEN SIX? [SILENCE] - STAR SEVEN SIX.

[SILENCE] OKAY. IF WE HAVE NO FURTHER PUBLIC COMMENT, I'M GONNA BRING IT BACK TO THE BOARD

[ACTION ON THE CONSENT AGENDA (ITEMS 13-47)]

I WILL START ON MY LEFT WITH SUPERVISOR KOENIG.

- THANK YOU CHAIR.

UH, FOR ITEMS 24, 25 AND 28, APPOINTING VARIOUS PEOPLE TO OPEN SEATS ON THE HOUSING ADVISORY COMMISSION, UH, INCLUDING TOM GRAHAM, DEPUTY DIRECTOR FROM THE SANTA CRUZ COUNTY HOUSING AUTHORITY, WHO WILL HEAR FROM MOMENTARILY.

I JUST WANNA THANK EVERYONE WHO'S STEPPED FORWARD, UH, TO VOLUNTEER FOR THESE POSITIONS.

IF EVERYONE SHOWS UP AT NEXT WEDNESDAY'S MEETING, I THINK WE'LL ACTUALLY HAVE A QUORUM WHICH WOULD BE FANTASTIC.

UH, ITEM 27 RESOLUTION OPPOSING SEABED MINING.

I JUST WANNA THANK SUPERVISOR CUMMINGS FOR THIS RESOLUTION, UH, AND HIS CONTINUED VIGILANCE ON OPPOSING EXPLOITATION OF OUR MARINE ENVIRONMENT.

UM, DURING A ROUND TABLE WE HAD, WHERE GARY GRIGGS WAS PRESENT HE SAID THAT ACTUALLY OCEAN MINING IS A PARTICULAR RISK FOR OUR AREA BECAUSE OF THE DAVIDSON SEAMOUNT OFF OF BIG SUR.

UM, HAS A WEALTH OF MINERALS AND SO, UH, IT IS IMPORTANT TO PAY ATTENTION TO THIS IN OPPOSE SEABED MINING IN OUR AREA.

ITEM 35, THE AGREEMENT WITH SANTA CRUZ METRO IN THE AMOUNT OF $100,000 FOR CONTINUED FREE FAIRES TO THE SOUTH COUNTY GOVERNMENT CENTER UH, I WANNA THANK SANTA CRUZ METRO FOR THE PARTNERSHIP IN PROVIDING FAIR FREE SERVICE ON ROUTE 78 TO THE SOUTH COUNTY GOVERNMENT CENTER.

AND I THINK THAT OUR COUNTY FUNDING THAT FOR THIS DEMONSTRATES OUR COMMITMENT, UH, TO ACCESS OF, UH, ALL COUNTY SERVICES IN, UH, PARTICULARLY IN SOUTH COUNTY.

THANK YOU.

- THANK YOU.

DO YOU HAVE COMMENTS? SUPERVISOR DE SERPA.

- UH, THANK YOU.

UM, BEFORE I COMMENT ON THE CONSENT AGENDA I WOULD LIKE TO HONOR ONE OF OUR CONSTITUENTS IN DISTRICT 2.

UM, HARIO SAKODA ISHIBASHI ON THE OCCASION OF HER 100TH BIRTHDAY HER LIFE IS TRULY REMARKABLE.

HARU AS FAMILY AND FRIENDS CALL HER WAS BORN IN MONTEREY COUNTY IN 1926, AFTER AND AFTER PEARL HARBOR.

WHEN FBI AGENTS WERE GOING HOUSE TO HOUSE AHEAD OF INTERNMENT, HARU WAS JUST 16.

WHEN THEY CAME TO HER FAMILY HOME, SHE CALMLY TOLD THEM THAT ALL THE KIDS HAD CHICKENPOX AND THEY COULDN'T COME IN.

AND THAT NIGHT HER FAMILY DROVE TO COLORADO AND AVOIDED INTERNMENT.

AFTER THE WAR, SHE RETURNED TO CALIFORNIA, SETTLED IN WATSONVILLE IN THE 1950S, AND HELPED BUILD A LIFE IN THE PAJARO VALLEY AS A STRAWBERRY GROWER.

EARNING RESPECT AS A LEADER IN THE BERRY GROWING COMMUNITY AT A TIME WHEN WOMEN GROWERS WERE RARE AND REALLY STILL ARE.

THROUGH WESTVIEW PRESBYTERIAN CHURCH, THE JAPANESE AMERICAN CITIZENS LEAGUE, AND THE AS THE MATRIARCH OF A BIG LOVING FAMILY.

SHE'S LEFT AN INCREDIBLE LEGACY HERE AND I'M PROUD WE GET TO HONOR HER TODAY.

HAPPY BIRTHDAY HARU.

WE HAVE A BOARD PROCLAMATION TO HONOR THE OCCASION AND WE'LL MAKE CERTAIN WE GET THAT TO YOU IN PERSON.

THANK YOU. THANK YOU FOR INDULGING THAT.

UM, ON ITEM 26, I APPRECIATE THE CHANCE TO PARTNER WITH SUPERVISOR CUMMINGS TO SUPPORT AB 1539 AUTHORED BY OUR LOCAL ASSEMBLY MEMBER, DON ADDIS.

AT ITS CORE, THIS BILL IS ABOUT MAKING SURE PRESIDENTIAL AND VICE PRESIDENTIAL NOMINEES MEET THE CONSTITUTIONAL REQUIREMENTS BEFORE THEIR NAMES MOVE INTO THE BALLOT PROCESS.

SO THANK YOU, UH, SUPERVISOR CUMMINGS FOR SUPPORTING WITH ME.

UM, ON ITEM 30, APPROVING PEOPLE FIRST CONTRACT TO OPERATE SHELTERS.

OVER THE LAST FEW WEEKS, UM, MY OFFICE, AND I'M GUESSING MANY OF MY COLLEAGUES HERE ON THE BOARD HAVE RECEIVED CALLS AND EMAILS FROM RESIDENTS CONCERNED ABOUT THE WELLBEING OF UNHOUSED PEOPLE WITH THE VERY COLD WEATHER.

UM, I WOULD LIKE TO REQUEST A REPORT BACK ON HOW OFTEN SHELTERS ARE ACTIVATED, WHAT THE USAGE AND CAPACITY LOOKS LIKE, AND WHETHER ANYONE WAS TURNED AWAY BECAUSE, UH, THOSE SHELTERS WERE FULL.

UM, ALSO I'D LIKE TO REVIEW THE CONDITIONS THAT HAVE TO BE MET TO TRIGGER SEVERE WEATHER SHELTERS.

THEY SEEM, UM, IT SEEMS LIKE WE COULD DO A BETTER JOB UH, UNDERNEATH THIS FRAMEWORK, SO THANK YOU.

[00:30:01]

I THANK STAFF AND PARTNERS FOR THE WORK THAT WENT INTO THIS AND THE CLEAR FOCUS FOR THE NEXT FIVE YEARS, STRONGER AFTERCARE PLANNING, BETTER ENGAGEMENT AND SUPPORT FOR PARENTS WITH COMPLEX NEEDS AND BUILDING UP A NA-, THE NATURAL AND COMMUNITY SUPPORTS, SO FAMILIES HAVE WHAT THEY NEED TO STAY STABLE AND THE SYSTEM STEPS BACK FROM INTERVENING.

UM, I WOULD ALSO JUST, AND I'LL, I WILL DO THIS IN MARCH FOR SOCIAL WORK APPRECIATION MONTH, BUT JUST A SHOUT OUT TO ALL MY SOCIAL WORK COLLEAGUES THAT WORK IN CHILD WELFARE.

IT'S ONE OF THE HARDEST JOBS THERE IS TRULY.

UM, AND SO THANK YOU FOR EVERYTHING THAT YOU DO AND EVERYTHING THAT YOU SEE.

I KNOW THAT IT IS, UH, IMPORTANT WORK AND VERY DIFFICULT WORK.

UM, AND, BUT THERE'S ONE, I THINK, I THINK THAT'S IT FOR NOW.

THANK YOU.

- THANK YOU, SUPERVISOR DE SERPA.

SUPERVISOR CUMMINGS.

- THANK YOU CHAIR.

UM, FIRST JUST LIKE TO START BY THANKING SUPERVISOR DE SERPA FOR ITEM NUMBER 26 FOR BRINGING THIS TO OUR ATTENTION AND, UM, ASKING ME TO SIGN ON, WHICH I THINK IS VERY, UM, IT'S TIMELY IN TERMS OF THE WORK THAT ASSEMBLY MEMBER ADDIS IS TRYING TO ACCOMPLISH.

UM, REGARDING QUALIFIED POLITICAL PARTIES TO CERTIFY CONSTITUTIONAL ELIGIBILITY OF PRESIDENTIAL AND VICE PRESIDENTIAL NOMINEES.

ITEM NUMBER 27.

UH, THIS IS A RESOLUTION OPPOSING FEDERAL ACTIONS TO ADVANCE SEABED MINING AND TAKE RELATED ACTIONS.

UM, THIS WAS ACTUALLY SUPPOSED TO JUST BE A CLEANUP ITEM.

UM, WE, WHEN WE LOOK BACK AT THE FIRST RESOLUTION THAT THE BOARD PASSED, WE NOTICED THAT FOR SOME REASON SEABED MINING, UM, WASN'T INCLUDED.

AND, UM, THE OFFSHORE, UM, OIL COMMENT THAT WAS MADE, UM, THE BOARD TOOK ACTION JUST FOR ONE SPECIFIC COMMENT, NOT FOR MULTIPLE COMMENTS THROUGHOUT THE DURATION OF THE PROCESS AND SO THIS ITEM WAS INTENDED TO, UM, ALLOW FOR, UM, THE CHAIR ON BEHALF OF THE BOARD TO SIGN OFF ON COMMENTS, UM, THAT COULD BE SUBMITTED THROUGHOUT THIS ENTIRE PROCESS.

AND ALSO, UM, TO HAVE A RESOLUTION OPPOSING DEEP SEABED MINING.

BUT THEN YESTERDAY THE BUREAU OF OCEAN ENERGY MANAGEMENT, UM, ACTUALLY PROPOSES RULE CHANGES TO SUPPORT CRITICAL MINERAL EXPLORATION AND DEVELOPMENT ESSENTIAL FOR NATIONAL SECURITY AND ECONOMIC PROSPERITY.

SO WHAT THEY ANNOUNCED YESTERDAY WAS THEY PROPOSED REVISIONS TO ITS REGULATIONS GOVERNING HARD MINERAL RESOURCES ON THE US OUTER CONTINENTAL SHELF, AIMING TO ADVANCE EXPLORATION AND DEVELOPMENT OF CRITICAL MINERALS ESSENTIAL TO NATIONAL SECURITY, ECONOMIC COMPETITIVENESS AND TECHNOLOGY PROGRESS.

MEANING THAT THEY'RE GONNA SPEED UP THIS PROCESS FOR DEEP SEA BEND MINING.

AND THE PROPOSED CHANGES ARE ACTUALLY GONNA BE PUBLISHED TODAY.

SO IT'S VERY TIMELY THAT WE HAVE THIS OPPOSITION MOVING FORWARD BECAUSE CURRENTLY THERE'S A COMMON PERIOD FOR DEEP SEABED MINING OFF THE COAST OF ALASKA.

THERE'S A COMMON PERIOD FOR DEEP SEABED MINING OFF THE COAST OF VIRGINIA AND WE KNOW THAT THERE ARE SITES OFF THE COAST OF CALIFORNIA THAT LIKELY WILL BE COMING UNDER THREAT.

SO JUST WANNA THANK THE BOARD FOR, UM, THEIR SUPPORT OF US CONTINUING TO STAY ON TOP OF PROTECTING OUR OCEANS AND OUR NATURAL RESOURCES.

ITEM NUMBER 30, UM, THIS IS THE CONTRACT WITH PEOPLE FIRST AND I KNOW DAVE REID'S HERE.

I HAVE A FEW QUESTIONS.

UM, I THINK THAT WERE SOMEWHAT HIGHLIGHTED FROM BY, UM, SUPERVISOR DE SERPA.

UM, THIS IS, UH, RELATED TO CONTRACTING FOR WINTER SHELTER AND I WAS WONDERING IF YOU MAYBE COULD, UM, JUST PROVIDE SOME INFORMATION ABOUT THE TRIGGERS FOR, UM, WHEN WINTER SHELTERS ARE OPEN AND ALSO WHAT OPPORTUNITIES THERE ARE FOR US TO, UH, REOPEN THE CONVERSATION AROUND THE TRIGGERS FOR WINTER SHELTER.

- GOOD MORNING BOARD.

DAVE REID DIRECTOR, DIRECTOR OF OR3.

BETTER. THERE WE GO.

UM, YEAH, GOOD MORNING BOARD.

DAVE REID, DIRECTOR OR3.

SO THE THRESHOLDS TO OPEN THE SHELTERS IS A FORECASTED TEMPERATURE OF 38 DEGREES OR LESS FOR TWO CONSECUTIVE NIGHTS.

WE USE THAT TEMPERATURE AT THE INSIDE THE CITY LIMITS OF SANTA CRUZ AND INSIDE THE CITY LIMITS OF WATSONVILLE.

SO WHEN WE DO A FORECAST AND WE WORK WITH THE NATIONAL WEATHER SERVICE, WE'RE LOOKING AT THE LOW TEMPERATURES IN THOSE TWO LOCATIONS BECAUSE WE DO KNOW THAT AS YOU GET UP IN ELEVATION, IN MOST SITUATIONS IT'S GONNA GET COLDER.

SO A LOT OF TIMES COMMUNITY MEMBERS WILL SEE THAT IT'S GONNA BE 36 DEGREES OR 34 DEGREES IN BOULDER CREEK OR IN OTHER PARTS OF THE COUNTY, BUT WE REALLY ARE TRYING TO FOCUS ON THOSE TWO TEMPERATURE LOW TEMPERATURES IN THOSE TWO LOCATIONS.

SO THAT'S ONE THRESHOLD.

THE SECOND THRESHOLD IS RELATED TO FLOODING.

SO IF WE HAVE A FORECASTED FLOODING, UM, BY THE NATIONAL WEATHER SERVICE AT A CERTAIN ELEVATION, THERE'S ADVISORY WARNING AND OR I ALWAYS FORGET THE THREE, BUT THERE'S TIERS OF FLOOD ADVISORY, BUT IF WE'RE EXPECTING SIGNIFICANT FLOODING.

AND THEN THE THIRD IS IF WE ARE ISSUING EVACUATIONS FOR ANYWHERE IN THE COUNTY, WE WOULD OPEN 'EM.

[00:35:01]

TYPICALLY WHAT WE'VE EXPERIENCED OVER THE LAST NUMBER OF WINTERS IS REALLY TEMPERATURE BASED RATHER THAN THE FLOODING BASED.

SO THOSE ARE THE CRITERIA.

AND THEN ONE OF THE DRIVERS, UM, FOR CHANGING THAT CRITERIA IS REALLY AROUND, UM, BOTH FACILITY ACCESS, STAFFING RESOURCES, UM, AND COST.

SO PEOPLE FIRST HAS BEEN A GREAT PARTNER THAT WE'VE STARTED WORKING WITH, UM, OVER THE LAST FEW YEARS.

THEY HAVE STAFFING CAPACITY ISSUES.

UM, THEY HAD THOSE LAST YEAR WHEN WE WERE OPERATING KIND OF MORE THAN TWO OR THREE DAYS IN A ROW.

UM, AND THEN WE DO HAVE FACILITY ACCESS ISSUES AS WELL.

SO WE, WE TYPICALLY ARE OPENING RIGHT NOW AT OUR TWO VETS HALLS.

AND, AND SO WE'RE TRYING TO WORK AROUND EXISTING PROGRAMMING TO MINIMIZE THE IMPACTS TO THE, UH, DAY-TO-DAY OPERATIONS AT THOSE FACILITIES.

BUT THERE'S CERTAINLY AN OPPORTUNITY TO HAVE MORE CONVERSATION ABOUT THAT WITH, WITH THE BOARD.

- GREAT. WELL IT'D BE GREAT TO FOLLOW UP WITH YOU AND MAYBE SUPERVISORS DE SERPA, IF YOU'RE INTERESTED, WE CAN TALK WITH DAVE REID ABOUT THIS.

'CAUSE I THINK, YOU KNOW, THE OTHER FACTOR IS PRECIPITATION MORE SO THAN FLOODING.

YOU KNOW, IF IT'S HEAVY RAIN LIKE WE HAD THE OTHER WEEK AND IT'S, YOU KNOW, 45 DEGREES OUT WITH WINDS THAT CAN POTENTIALLY CAUSE HYPOTHERMIA.

AND SO I THINK WE CAN MAYBE CONSIDER AND THINK ABOUT WHAT FURTHER OPPORTUNITIES AND WHETHER WE CAN MAKE SOME SHIFTS TO THESE, UM, CRITERIA FOR OPENING.

BUT JUST WANNA APPRECIATE THE WORK THAT YOU ALL HAVE BEEN ABLE TO DO.

UM, AND THE FACT THAT WE WERE ABLE TO GET AN MOU WITH THE CITY OF SANTA CRUZ AND CITY OF WATSONVILLE TO HAVE WINTER SHELTERS TO BE AVAILABLE.

- YEAH. THANK YOU.

- SUPERVISOR CUMMINGS, CAN I JUST MAKE A COMMENT? - SURE. - IS THAT OKAY? ONE TINY COMMENT.

- SURE, GO FOR IT.

- UM, I, I'LL JUST SAY THAT ON BEHALF OF THE HOSPITALS IN OUR COUNTY, IT'S VERY, VERY DIFFICULT TO DISCHARGE SOMEBODY WHO'S BEEN VERY ILL OR HAD SURGERY OR SOMETHING TO THE, UM, RECUPERATIVE CARE CENTER.

LIKE THERE NEEDS TO BE AN AUTHORIZATION IN PLACE.

AND THAT TAKES SOMETIMES SEVERAL DAYS.

I'VE TALKED TO CCAH ABOUT IT AND IT HASN'T GOTTEN ANY BETTER.

SO ON THESE VERY COLD NIGHTS WHEN PEOPLE ARE BEING DISCHARGED FROM THE HOSPITAL, THEY DON'T HAVE ANYWHERE TO GO.

SO IF SOMEBODY COULD HELP ME WORK ON THIS, 'CAUSE THAT NEEDS TO BE A VERY EASY PROCESS SO THAT WE CAN GET PEOPLE WHO NEED, WHO ARE HAVING A MEDICAL SITUATION INTO SHELTER.

- YEAH, AND, AND I THINK THE, UH, YOU KNOW, TO NOT SPEAK ON BEHALF OF THE OTHER DIRECTOR IN THE ROOM, UM, DIRECTOR, UH, RANDY FROM HSDI, I'D, I'D APPRECIATE THAT.

ANY CONVERSATION WE HAVE, WE MAKE SURE TO INCLUDE ROBERT AND RANDY IN THAT CONVERSATION BECAUSE SOME OF THIS WORK STRADDLES THE OR3 PURVIEW...

- I GET IT, I JUST NEEDED TO - ... WITH THE DAY TO DAY FOR SURE.

- ... SAY IT OUT LOUD... - ABSOLUTELY.

- BECAUSE I TRIED TO FIX IT FROM BEHIND THE SCENES AND IT'S NOT WORKING.

- YEAH. - THANK YOU.

- SO, UM, LAST TWO COMMENTS.

UM, ITEM NUMBER 36, THIS IS THE AGREEMENT WITH HOUSING MATTERS AND JUST WANT TO ACKNOWLEDGE SOME OF THE COMMENTS THAT WERE MADE EARLIER.

AND, UM, MY HOPE IS THAT WHEN WE GET AN UPDATE ON HOMELESS SERVICES THAT WE CAN GET A REPORT BACK ON WHETHER HOUSING MATTERS HAS MET THEIR GOALS IN TERMS OF THE PEOPLE THAT THEY'RE TRYING TO SERVE.

UM, JUST SO THAT WE CAN MAKE SURE THAT THE COMMUNITY IS AWARE OF HOW EFFECTIVE THESE DOLLARS ARE BEING, UM, SPENT TO HELP US ADDRESS HOMELESSNESS.

AND THEN FINALLY, ITEMS 46 AND 47, THESE ARE RELATED TO THE RAIL TRAIL.

I JUST WANNA THANK STAFF FOR ALL THEIR HARD WORK.

UM, YOU KNOW, I THINK THAT THE EXPECTATION IS THAT WE'RE GONNA TRY TO DO OUR BEST TO MINIMIZE THE AMOUNT OF TRAIL THAT GOES ONTO THE TRACK JUST BECAUSE OF THE FACT THAT THAT'S WHY WE ACCEPTED THAT FUNDING IN THE FIRST PLACE.

UM, BUT KNOWING THAT THERE'S A GAP, THAT THERE'S GONNA BE SOME NEED TO TRY TO GET CREATIVE WITH HOW WE'RE GONNA MAKE SURE THAT WE CAN MAKE OUR DOLLARS GO AS FAR AS THEY CAN.

SO GOOD LUCK WITH THAT ENDEAVOR AND LOOK FORWARD TO HEARING BACK FROM YOU ALL SOON.

- JUST REAL, REALLY QUICK.

- SUPERVISOR HERNANDEZ.

- REALLY QUICK ON 30, UM, WE ALSO HAD THE SAME CONCERN.

THE CITY OF WATSONVILLE ALSO HAD THE SAME CONCERN.

I THINK IT GOT LIKE 34, 33 OVER THERE, BUT THEY HAVE THE SAME CONCERN TO BE ABLE TO, UH, OPEN IT UP WHEN IT'S COLD, RAINING, STUFF LIKE THAT.

WE HAVE, WE HAD LIKE OVER AN INCH OF RAIN DURING THAT LAST STORM SO IT GOT PRETTY WET AND PRETTY COLD.

SO, YEAH.

- THANK YOU.

UM, MY FINAL COMMENTS ON THE CONSENT AGENDA, UM, I WANNA THANK ALL OF THE STAFF FOR THE GOOD WORK THAT'S, THAT'S IN OUR CONSENT AGENDA.

THERE'S A TREMENDOUS AMOUNT OF INFORMATION IN HERE UM, THAT I ENJOYED READING, INCLUDING THE, UM, SIP REPORT, WHICH I THINK SUPERVISOR DE SERPA IS A PART OF, UM, AROUND CHILD WELFARE, WHICH IS VERY INTERESTING.

UM, BUT I DO WANNA MAKE JUST A QUICK COMMENT ON ITEM NUMBER 42 UM, BECAUSE THERE'S LANGUAGE IN HERE THAT I THOUGHT I MIGHT NOT EVER HERE, UM, WHICH IS ADOPTING A RESOLUTION ACCEPTING UNANTICIPATED REVENUE IN THE AMOUNT OF $525,432 FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY.

IT'S FEMA.

UM, AND SO I AM REALLY GLAD TO SEE THAT OUR TEAM WAS ABLE TO WORK WITH, UM, THE GOVERNOR'S OFFICE, OFFICE OF EMERGENCY SERVICES TO, UM, SECURE EMERGENCY FUNDING

[00:40:04]

THAT WAS A CRITICAL REPAIR AND NOW WE'RE FINALLY BEING ABLE TO PUT THAT MONEY BACK IN OUR POCKET SO WE CAN CONTINUE WITH, UM, PERMANENT REPAIRS AS WELL AS SOME ROAD PROJECTS.

SO GREAT WORK AND HAVING JUST BEEN AT THE, UM, NATIONAL ASSOCIATION OF COUNTIES CONFERENCE, IT SOUNDS LIKE, YOU KNOW, PRETTY IMPOSSIBLE TO RECEIVE FEMA FUNDING THESE DAYS.

SO REALLY, REALLY GLAD TO SEE THAT WE WERE ABLE TO BE SUCCESSFUL.

SO WITH THAT, UM, I'M GOING TO BRING IT BACK TO THE BOARD FOR ACTION ON THE CONSENT AGENDA.

- I MOVE CONSENT. I DID. OH.

- I'LL SECOND - SECOND.

- [LAUGH] DO WE HAVE A MOTION ON THE CONSENT AGENDA? - MOTION ON CONSENT? I DO NEED TO ADD A LITTLE BIT OF ADDITIONAL DIRECTION THOUGH ON ONE ITEM.

- WHY DON'T YOU MAKE A MOTION WITH YOUR ADDITIONAL DIRECTION AND THEN WE'LL SEE IF WE GET A SECOND.

- UM, SO THIS IS ON ITEM NUMBER 27, THE SEABED MINING.

JUST WANTED TO, UM, ADD AN AMENDMENT THAT WOULD ALLOW FOR THE CHAIR TO SUBMIT COMMENTS ON, UM, THE DEEP SEABED MINING PROPOSALS.

SO MOTION MOVE CONSENT WITH THE ADDITIONAL DIRECTION.

- IS THERE A SECOND? - I'LL SECOND. - SECOND.

- SO WE HAVE A MOTION FROM SUPERVISOR CUMMINGS, A SECOND FROM SUPERVISOR DE SERPA.

ANY FURTHER COMMENT ON THE CONSENT AGENDA? SEEING NONE, MADAM, ROLL PLEASE CALL THE.

MADAM CLERK, PLEASE CALL THE ROLL.

- SUPERVISOR HERNANDEZ.

- AYE - CUMMINGS. - AYE - KOENIG. - AYE - DE SERPA. - AYE - AND MARTINEZ. - AYE - MOTION PASSES 5 TO 0.

WE'RE NOW MOVING ON TO THE REGULAR AGENDA.

WE, OUR FIRST ITEM ON THE REGULAR AGENDA IS ITEM NUMBER 7,

[7. Presentation from the Housing Authority of the County of Santa Cruz on recent updates and current issues]

AND, I WANT TO REMIND THE BOARD THAT WE'RE NOT TAKING ACTION ON THIS ITEM, IT'S JUST MERELY RECEIVING A REPORT.

UM, BUT WE WILL BE GOING TO THE PUBLIC FOR AN OPPORTUNITY FOR PUBLIC COMMENT AFTER THE REPORT, AND THEN WE'LL COME BACK TO THE BOARD FOR QUESTIONS AND COMMENTS.

UM, SO WITH THAT, I BELIEVE WE HAVE WITH US, UM, JENNY PANETTA, THE EXECUTIVE DIRECTOR OF THE HOUSING AUTHORITY, AS WELL AS ANOTHER GUEST, SO I'LL ASK YOU TO INTRODUCE YOURSELF.

- GOOD MORNING, BOARD OF SUPERVISORS.

UH, MY NAME IS TOM GRAHAM, I'M THE DEPUTY EXECUTIVE DIRECTOR.

I ALSO LIKE TO TAKE THIS OPPORTUNITY TO THANK YOU FOR NOMINATING ME TO THE HOUSING ADVISORY COMMITTEE.

- CONGRATULATIONS.

ALL RIGHT, TAKE IT AWAY.

- OKAY. UM, GOOD MORNING, CHAIR MARTINEZ AND MEMBERS OF THE BOARD.

MY NAME IS JENNY PANETTA, I'M THE EXECUTIVE DIRECTOR OF THE HOUSING AUTHORITY OF THE COUNTY OF SANTA CRUZ, AND I'M REALLY EXCITED TO HAVE THIS OPPORTUNITY TO SHARE WITH YOU SOME UPDATES FROM THE HOUSING AUTHORITY, INCLUDING SOME POSITIVE NEWS ABOUT HOW WE'VE GROWN AND CHANGED IN RECENT YEARS, ALONG WITH SOME OF THE SIGNIFICANT CONCERNS AND CHALLENGES THAT WE'RE FACING IN THIS CURRENT CLIMATE.

AND THEN WE'LL CLOSE WITH WHY WE REMAIN RELENTLESSLY OPTIMISTIC ABOUT THE ROAD AHEAD.

ALL RIGHT. NOPE, BACK ONE.

OKAY, PERFECT. THANK YOU.

UH, SO THE HOUSING AUTHORITY IS AN INDEPENDENT, MISSION-DRIVEN PUBLIC AGENCY THAT ADMINISTERS A MIX OF FEDERAL, STATE, AND LOCAL PROGRAMS. OUR LARGEST PROGRAMS BY A MILE ARE FEDERALLY FUNDED RENTAL ASSISTANCE PROGRAMS. WE ARE CURRENTLY PROVIDING RENTAL ASSISTANCE AND HOUSING TO NEARLY 6,000 HOUSEHOLDS COUNTYWIDE, INCLUDING OVER 10,000 HOUSEHOLD MEMBERS.

AND AS YOU CAN SEE FROM THE CHART ON THE SLIDE HERE, A LOT OF THE FAMILIES IN OUR PROGRAM ARE SOME OF THE MOST VULNERABLE MEMBERS OF OUR COMMUNITY.

43% OF THE FAMILIES PARTICIPATING IN OUR RENTAL ASSISTANCE PROGRAMS INCLUDE A PERSON WITH DISABILITIES, 22% WERE HOMELESS WHEN THEY RECEIVED THEIR VOUCHER, AND 38% OF HOUSEHOLDS HAVE CHILDREN IN THE HOME.

THE FAMILIES THAT PARTICIPATE IN OUR PROGRAMS ARE EXTREMELY LOW-INCOME FAMILIES WITH A MEDIAN HOUSEHOLD INCOME OF JUST $27,000 A YEAR, WHICH IS JUST BARELY ABOVE THE FEDERAL POVERTY LEVEL.

RENTAL ASSISTANCE IS AT THE CORE OF OUR MISSION AT THE HOUSING AUTHORITY, AND I'M REALLY PROUD OF OUR PERFORMANCE HERE.

OUR HOUSING CHOICE VOUCHER PROGRAM HAS GROWN SIGNIFICANTLY.

IN THE PAST 5 YEARS, WE'VE INCREASED THE SIZE OF OUR HOUSING CHOICE VOUCHER PROGRAM BY OVER 20%, WHICH IS ADDING A THOUSAND ADDITIONAL FAMILIES TO OUR HOUSING CHOICE VOUCHER PROGRAM JUST IN 5 YEARS.

WE'VE ALSO INCREASED THE SIZE OF OUR BUDGET BY $50 MILLION ANNUALLY.

OUR PROJECT-BASED VOUCHER PROGRAM HAS ALSO GROWN, WHICH MEANS THAT WE'RE USING OUR VOUCHERS TO SUPPORT THE DEVELOPMENT OF NEW AFFORDABLE HOUSING.

[00:45:02]

THEY'RE HELPING FAMILIES WITH AN AFFORDABLE INCOME-BASED RENT, BUT THEY'RE ALSO HELPING NEW HOUSING TO GET BUILT, THEY'RE HELPING THOSE PROJECTS TO BE FINANCIALLY VIABLE.

WE HAVE 25 PROJECT-BASED VOUCHERS THAT ARE COMPLETE, CONSTRUCTED AND OCCUPIED HOUSING FAMILIES, AND WE HAVE 21 MORE PROJECTS THAT ARE IN OUR PIPELINE CURRENTLY IN PRE-DEVELOPMENT OR IN THE CONSTRUCTION PHASE, REPRESENTING OVER 1,600 MORE AFFORDABLE HOUSING UNITS THAT WILL BE COMING ONLINE IN THE NEXT COUPLE OF YEARS.

SO WHEN YOU DRIVE AROUND IN THE COMMUNITY UP AND DOWN THE COUNTY, EVERYWHERE YOU'RE SEEING AFFORDABLE HOUSING BEING BUILT, THOSE PROJECTS ARE BEING PARTIALLY SUPPORTED BY VOUCHERS.

SO AS I'VE SHARED ALREADY, THIS HAS BEEN A TIME OF REAL GROWTH AND CHANGE AT THE HOUSING AUTHORITY, AND I WANTED TO SHARE A LITTLE BIT MORE ABOUT THAT.

IN THE PAST 5 YEARS ALONE, WE'VE ESTABLISHED OUR OWN NONPROFIT AFFILIATE CALLED NEW HORIZONS AFFORDABLE HOUSING AND DEVELOPMENT.

WE ALSO REPOSITIONED OUR FORMER PUBLIC HOUSING STOCK TO LOCAL OWNERSHIP, SO THAT OUR FORMER PUBLIC HOUSING UNITS ARE NOW OWNED BY OUR NONPROFIT, AND THE RENTAL REVENUE FROM THOSE UNITS IS GENERATING A NEW NON-FEDERAL SOURCE OF REVENUE AVAILABLE TO OUR NONPROFIT ORGANIZATION.

IN ADDITION TO THAT, WE'VE BEEN SELECTED BY HUD TO PARTICIPATE IN A DEMONSTRATION PROGRAM CALLED MOVING TO WORK, AND THE MTW PROGRAM GIVES OUR AGENCY SIGNIFICANT FINANCIAL AND ADMINISTRATIVE FLEXIBILITY.

SO IN 5 YEARS TIME, A NEW NONPROFIT, A NEW SOURCE OF REVENUE AND NEW FLEXIBILITY.

SO WHEN YOU PUT ALL OF THOSE THINGS TOGETHER, WE'VE BEEN ABLE TO EXPAND ON OUR MISSION SO THAT WE'RE DOING MORE THAN HOUSING, AND WE'RE TRYING TO USE HOUSING AS A PLATFORM TO IMPROVE EQUITY AND QUALITY OF LIFE.

TO THAT END, WE HAVE DEVELOPED A SUITE OF RESIDENT SERVICES AND THIS IS NEW FOR US.

WE HAVE FOCUSED ON RENTAL ASSISTANCE ALONE FOR DECADES.

NOW, THROUGH OUR NONPROFIT ORGANIZATION, WE'RE PROVIDING SCHOLARSHIPS, SUMMER CAMP GRANTS, TUTORING, BACKPACKS, METRO PASSES.

ALL OF THE SERVICES ON THE SLIDE THAT, THIS IS A, UH, THIS IS A PARTIAL LIST OF THE SERVICES THAT WE ARE CURRENTLY OFFERING TO FAMILIES ON OUR PROGRAM THROUGH OUR NONPROFIT ORGANIZATION.

THERE WE GO. OH, CAN YOU GO BACK? OKAY.

WHICH LEADS ME TO THE OTHER NEW SIGNIFICANT ACTIVITY THAT WE HAVE UNDERTAKEN AS A HOUSING AUTHORITY.

NOW, MANY, MANY YEARS AGO, DECADES AGO, IN FACT OUR HOUSING AUTHORITY BUILT AFFORDABLE HOUSING.

BUT FOR THE PAST 30 YEARS, AS I'VE SHARED A FEW TIMES, WE HAVE FOCUSED ON RENTAL ASSISTANCE AND RENTAL ASSISTANCE ONLY.

I'M REALLY EXCITED AND PROUD TO SHARE THAT FOR THE FIRST TIME IN 30 YEARS, OUR HOUSING AUTHORITY IS BUILDING AGAIN.

SO WE'VE RECENTLY COMPLETED OUR FIRST NEW AFFORDABLE HOUSING PROJECT, IT WAS A 20-STUDIO APARTMENT PROJECT ON THE WEST SIDE OF SANTA CRUZ, THAT'S NATURAL BRIDGES APARTMENTS.

AND WE HAVE A NEW PROJECT IN PRE-DEVELOPMENT AT 2021 CHANTICLEER IN THE UNINCORPORATED PART OF THE COUNTY.

OUR NEW PROJECT ON CHANTICLEER WILL BE A FAMILY PROJECT, WE EXPECT AT LEAST 60 AFFORDABLE UNITS, AND THEY WILL BE A MIX OF STUDIOS, ONES, TWOS, AND THREE-BEDROOM UNITS.

WE EXPECT TO APPLY FOR TAX CREDITS, AND, UH, WE HOPE TO BEGIN CONSTRUCTION NEXT YEAR IN 2027.

THIS IS AN AREA OF GROWTH FOR US, SO WE ARE ALSO ACTIVELY SEEKING NEW OPPORTUNITIES, PARTICULARLY SEEKING OPPORTUNITIES AND PARTNERSHIPS THAT WILL HELP OUR AGENCY BUILD TAX CREDIT EXPERIENCE.

OKAY.

NOW, I WANT TO KIND OF PIVOT TO SHARE SOME OF THE CONCERNS AND CHALLENGES THAT WE'RE FACING RIGHT NOW IN THIS CURRENT FUNDING AND POLITICAL CLIMATE.

I'LL BEGIN WITH THE SITUATION WITH OUR EMERGENCY HOUSING VOUCHER PROGRAM, WHICH I THINK YOU MAY BE AWARE OF.

UH, THE EMERGENCY HOUSING VOUCHER PROGRAM, I'LL, I'LL JUST CALL THEM EHVS, WAS A BRAND NEW PROGRAM THAT CONGRESS PASSED DURING THE PANDEMIC WITH THE AMERICAN RESCUE PLAN ACT.

[00:50:03]

THE FUNDING THAT WE WERE AWARDED WAS ANTICIPATED BY HUD TO LAST 10 YEARS.

SO WE GOT THAT FUNDING IN 2021 IT WAS INTENDED TO LAST AT LEAST UNTIL 2031.

BUT THE COSTS OF THE PROGRAM, UH, HUD, HUD WENT THROUGH THE MONEY FASTER THAN THEY ANTICIPATED GOING THROUGH THE MONEY.

AND UNFORTUNATELY, BOTH CONGRESS AND HUD HAVE MADE A DECISION NOT TO ALLOCATE MORE FUNDING FOR THE EMERGENCY HOUSING VOUCHER PROGRAM.

SO THEY HAVE COMMUNICATED TO HOUSING AUTHORITIES, WHEN YOU RUN OUT OF FUNDING, YOUR PROGRAM IS OVER, AND RENTAL ASSISTANCE WILL END FOR ALL OF THE FAMILIES ON YOUR EMERGENCY HOUSING VOUCHER PROGRAM.

WE CURRENTLY HAVE 250 FAMILIES RECEIVING RENTAL ASSISTANCE THROUGH THE EMERGENCY HOUSING VOUCHER PROGRAM.

AND OUR HOUSING AUTHORITY IS COMMITTED TO DOING ABSOLUTELY EVERYTHING WE CAN POSSIBLY DO TO ENSURE THAT WE CAN PROVIDE CONTINUED RENTAL ASSISTANCE TO THESE HOUSEHOLDS.

SO, TO THAT END, WHAT WE HAVE DONE IS PLACED EVERYBODY THAT HAS AN EHV VOUCHER ONTO OUR REGULAR HOUSING CHOICE VOUCHER WAITLIST, AND WE'VE CREATED A PREFERENCE ON THAT WAITLIST FOR PEOPLE THAT HAVE AN EHV VOUCHER.

ADDITIONALLY, WE HAVE PRIORITIZED EHV HOUSEHOLDS FOR EVERY SINGLE ONE OF THE UNITS THAT OUR HOUSING AUTHORITY OWNS AND OPERATES.

SO ANYTIME WE HAVE A VACANCY, THAT, THAT UNIT IS GOING TO AN EHV FAMILY SO THAT WE CAN CONNECT THEM TO A STABLE RENTAL ASSISTANCE PROGRAM.

AND THEN BEYOND THAT ALL OF THOSE 25 PROJECT-BASED VOUCHER DEVELOPMENTS THAT I SHARED ARE COMPLETED AND OCCUPIED.

ANYTIME THERE IS A VACANCY AT ANY PBV UNIT, AND ANYTIME THERE'S A NEW PROJECT-BASED VOUCHER PROPERTY THAT'S COMING ONLINE BEFORE THE EHV PROGRAM ENDS, EHVS WILL BE PRIORITIZED FOR THOSE UNITS.

SO IMPORTANTLY, HARVEY WEST STUDIOS AND ALSO PACIFIC STATION NORTH, WHICH ARE BOTH ANTICIPATED TO OPEN IN THE COMING MONTHS.

THOSE WILL BE SIGNIFICANT OPPORTUNITIES FOR EHV HOUSEHOLDS AS WELL.

IT'S NOT ENOUGH.

IT'S NOT ENOUGH.

SO EVEN THOUGH WE'RE CONCENTRATING ALL OF OUR PROJECT-BASED VOUCHER AND HOUSING AUTHORITY UNIT CAPACITY TO EHV HOUSEHOLDS, IT'S NOT GOING TO BE ENOUGH, AND THERE WILL STILL BE HOUSEHOLDS IN THE EHV PROGRAM WHEN THE FUNDING FOR THAT PROGRAM COMES TO AN END AT THE END OF 2026.

THE ONLY VIABLE OPTION FOR PROVIDING CONTINUED RENTAL ASSISTANCE FOR EHV HOUSEHOLDS IS TO PROVIDE EVERY SINGLE ONE OF THOSE HOUSEHOLDS WITH A REGULAR HOUSING CHOICE VOUCHER.

AND THAT IS EXACTLY WHAT WE PLAN TO DO IF FUNDING IN THE VOUCHER PROGRAM ALLOWS FOR IT.

SO, UNFORTUNATELY, HERE WE ARE AT THE END OF FEBRUARY, AND WE STILL DON'T HAVE INFORMATION ABOUT OUR FUNDING FOR THE HOUSING CHOICE VOUCHER PROGRAM FOR CALENDAR YEAR 2026.

CONGRESS FINALLY PASSED A BUDGET BACK IN THE END OF FEBRUARY BUT THEY, BUT HUD HAS 60 DAYS AFTER THAT TO PROVIDE INDIVIDUAL HOUSING AUTHORITIES WITH OUR AGENCY-SPECIFIC FUNDING SO WE WON'T KNOW FOR SURE WHAT OUR FUNDING IS UNTIL THE END OF MARCH.

RIGHT NOW, THE BEST INFORMATION THAT WE HAVE AVAILABLE TO US AND PLEASE KEEP IN MIND THESE ARE PROJECTIONS, WE EXPECT THAT THE VOUCHER PROGRAM WILL BE FUNDED AT A 99% PRORATION.

SO THAT MEANS, YOU KNOW, WE WOULD GET 99% OF THE FUNDING WE WOULD OTHERWISE BE ELIGIBLE FOR, BUT IN ADDITION TO THAT SLIGHT CUT, UH, WE ALSO WILL BE RECEIVING NO INFLATION FACTOR ADJUSTMENT.

SO WHEN YOU PUT THOSE THINGS TOGETHER, IF THE COSTS OF THE PROGRAM ARE RISING AT ABOUT 5% A YEAR, AND WE'RE GETTING A 1% CUT, IT FEELS MORE LIKE A 6% CUT.

SO OUR FUNDING IS NOT, UM, IS NOT KEEPING UP WITH OUR COSTS.

WE HAVE BEEN PREPARING FOR THIS, AND SO WE HAVE BEEN IMPLEMENTING COST-SAVING MEASURES IN THE HOUSING CHOICE VOUCHER PROGRAM FOR MONTHS, EVER SINCE WE GOT THE NEWS ABOUT THE EHV PROGRAM.

WE HAVE, UM, INCREASED THE FREQUENCY OF OUR REEXAMINATIONS, AND WE'VE ALSO STOPPED ISSUING VOUCHERS BECAUSE OF THE NEED TO ATTRITION THE PROGRAM DOWN TO THE NUMBER OF FAMILIES THAT OUR FUNDING CAN SUPPORT, BUT ALSO TO CREATE AS MUCH SPACE AS WE POSSIBLY CAN FOR EHV HOUSEHOLDS.

AT THIS POINT IN TIME, AND AGAIN, THESE ARE PROJECTIONS,

[00:55:04]

AND SO I'M CAUTIOUSLY OPTIMISTIC THAT WE CAN AVOID A CATASTROPHE WITH THE EHV PROGRAM, BUT AT THE SAME TIME, WHAT THAT MEANS IS ALL OF OUR VOUCHER CAPACITY IS CONCENTRATED ON AVOIDING, ELIMINATING RENTAL ASSISTANCE, JUST PRESERVING RENTAL ASSISTANCE FOR THOSE WHO ARE CURRENTLY ALREADY HOUSED.

AND THAT MEANS THAT FOR THE FORESEEABLE FUTURE, IT'S UNLIKELY THAT WE'LL BE ABLE TO ISSUE NEW VOUCHERS TO PEOPLE FROM OUR WAITLIST, AND IT'S UNLIKELY THAT WE'LL BE ABLE TO ISSUE A NEW RFP TO ALLOW AFFORDABLE HOUSING DEVELOPERS TO APPLY FOR VOUCHERS TO SUPPORT NEW AFFORDABLE HOUSING.

UH, IN ADDITION TO THE FUNDING CHALLENGES, WE ALSO HAVE SOME PROGRAM CHANGES THAT WE'RE CONCERNED ABOUT.

AND JUST LAST FRIDAY, JUST A COUPLE OF DAYS AGO, HUD ISSUED NEW PROPOSED REGULATIONS INTO THE FEDERAL REGISTER THAT WOULD, THAT WOULD CREATE NEW ELIGIBILITY REQUIREMENTS RELATED TO CITIZENSHIP AND LEGAL RESIDENCY.

THE HOUSING AUTHORITY STRONGLY OPPOSES THE PROPOSED REGULATIONS THAT HAVE BEEN ISSUED.

IT HAS JUST BEEN A COUPLE OF DAYS, AND SO WE'RE STILL IN THE PROCESS OF DETERMINING WHAT THE IMPACTS COULD BE AND WHAT OUR STRATEGY WILL BE, BOTH TO ENGAGE IN ADVOCACY AGAINST THE PROPOSED REGULATIONS, AS WELL AS TO PROTECT THE FAMILIES THAT ARE CURRENTLY ON OUR RENTAL ASSISTANCE PROGRAM THAT COULD POTENTIALLY BE IMPACTED BY THOSE.

BEYOND THOSE CHANGES, WHICH HAVE JUST BEEN PROPOSED FOR A 60-DAY COMMENT PERIOD, HUD HAS ALSO TALKED ABOUT A PRIORITY FOR ESTABLISHING TIME LIMITS IN THE VOUCHER PROGRAM, AS WELL AS WORK REQUIREMENTS.

BUT THOSE CHANGES HAVE NOT BEEN PROPOSED, AND WHAT WE'RE HEARING AND WHAT WE SAW IN LEAKED REGULATIONS THAT CAME OUT LAST SUMMER IS THAT THOSE CHANGES, IF THEY HAPPEN, ARE LIKELY TO BE OPTIONAL, SUCH THAT HOUSING AUTHORITIES COULD HAVE THE OPTION TO ADOPT THOSE POLICIES, BUT WOULD NOT BE REQUIRED TO DO SO, AND OUR HOUSING AUTHORITY WOULD NOT DO SO.

SO, DESPITE THESE, UM, SETBACKS AND CONCERNS, YOU KNOW, LIKE I SHARED, I WANTED TO END ON A POSITIVE NOTE BECAUSE I REALLY DO REMAIN RELENTLESSLY OPTIMISTIC.

I BELIEVE THAT WE ARE STRONGER THAN WE'VE EVER BEEN AS AN AGENCY WE HAVE NEW ADMINISTRATIVE AND FUNDING FLEXIBILITY THAT GIVES US ROOM TO INNOVATE AND COME UP WITH LOCAL SOLUTIONS.

WE HAVE 50 YEARS OF EXPERIENCE IN ADMINISTERING THIS PROGRAM AND SO AS A REMINDER, WE'VE BEEN THROUGH THIS BEFORE.

WE'VE BEEN THROUGH CHANGES IN THE PROGRAM, CHANGES IN ADMINISTRATION.

WE'VE BEEN THROUGH FUNDING CUTS, AND WE HAVE ALWAYS COME BACK STRONGER.

I'M CONFIDENT WE'RE GOING TO DO THAT AGAIN.

SO WITH THAT, I JUST WANTED TO CLOSE BY THANKING THE BOARD, AND STAFF, NOT JUST FOR THE OPPORTUNITY TO PRESENT TO YOU TODAY BUT ALSO FOR YOUR UNWAVERING PARTNERSHIP AND, UM, SUPPORT FOR OUR AGENCY, THE HOUSING AUTHORITY, THE PROGRAMS THAT WE ADMINISTER, AND FOR THE FAMILIES THAT WE SERVE.

THANK YOU.

AND WE WELCOME YOUR QUESTIONS.

- THANK YOU FOR THAT PRESENTATION.

UM, BEFORE I GO TO QUESTIONS FROM THE BOARD, I'M GOING TO SEE IF ANY...

I THINK YOU LOST MY SOUND.

IT'S BACK? ANYBODY IN THE AUDIENCE, UM, HAS ANY PUBLIC COMMENT? IF SO, GO AHEAD AND LINE UP RIGHT HERE.

- THANK YOU.

IS IT ON NOW? THANK YOU.

- THANK YOU.

UH, THANK YOU FOR THE PRESENTATION, BECKY STEINBRUNNER.

IT IS, UM, CONCERNING TO ME TO HEAR THESE NUMBERS EVER INCREASING AND THE FUNDING GOING DOWN.

BUT, UM, I THINK THAT THERE NEEDS TO BE A CLEAR PREFERENCE FOR THESE UNITS FOR PEOPLE WHO LIVE AND WORK IN SANTA CRUZ COUNTY.

I'M AWARE THAT THAT, UM, THAT DOES NOT ALWAYS EXIST, AND I WOULD LIKE TO ASK THE BOARD TO, UM, HAVE A TRACKING ON THIS ISSUE TO MAKE SURE THAT WE ARE OFFERING THESE AFFORDABLE UNITS, THESE EMERGENCY HOUSING VOUCHERS, TO PEOPLE WHO LIVE AND WORK IN SANTA CRUZ COUNTY.

UM, I'M CONCERNED ABOUT COUNTING ON THE NORTH, UH, PACIFIC STATION NORTH BECAUSE THAT'S IN THE CITY OF SANTA CRUZ, AND, UM, THEY'RE,

[01:00:01]

SO, I'D LIKE TO MAKE THAT REQUEST OF THE BOARD.

AND, UM, MEASURE J, PASSED BY THE VOTERS IN 1978, REQUIRES AT LEAST 15% OF ALL NEW DEVELOPMENT TO BE, UM, OFFERED TO AND DEED-RESTRICTED TO AFFORDABLE HOUSING.

AND, UM, I DON'T ALWAYS SEE THAT HAPPENING.

SO, OUR BOARD NEEDS TO MAKE SURE THAT THAT IS HAPPENING ON ANY NEW PROJECTS COMING FORTH.

FINALLY, REGARDING THE IMPENDING REQUIREMENT FOR CITIZENSHIP, WHY NOT OFFER, UH, STREAMLINED CITIZENSHIP CLASSES TO THESE PEOPLE TO HELP THEM, AND, UM, LANGUAGE CLASSES SO THEY CAN BECOME LEGAL CITIZENS AND NOT BE AFRAID? THANK YOU.

- THANK YOU.

WELCOME.

- THANK YOU, I'M RANDY MORRIS, THE COUNTY'S HUMAN SERVICES DIRECTOR, AND IT'S VERY NICE TO MEET YOU, JENNY.

JENNY WORKS VERY CLOSELY WITH THE HOUSING FOR HEALTH DIVISION DR. ROBERT RATNER, AND I JUST WANT TO MAKE SURE TO CONNECT THE DOT, THAT IS PROBABLY WELL KNOWN BY THE BOARD AND THE COMMUNITY BUT IF NOT, IT'S THE MARRIAGE AND THE PARTNERSHIP BETWEEN THE HOUSING AUTHORITY AND THE BOARD STANDING UP A HOUSING FOR HEALTH DIVISION THAT DID NOT EXIST 5 YEARS AGO.

I'VE BEEN IN THE FIELD 35 YEARS, ONLY 5 YEARS HAVE I OVERSEEN A HOMELESS OFFICE, AND THE ONE THING I'VE LEARNED IS UNTIL SOMEBODY CAN HELP BRIDGE THE DISTANCE BETWEEN RENT AND PEOPLE'S INCOME, ALL THE STATE FUNDING, ALL EFFORTS AT LOCAL GOVERNMENT LEVEL ARE LIMITED.

IT IS ONLY BECAUSE OF THE PARTNERSHIP WITH THE HOUSING AUTHORITY AND THE HOUSING VOUCHERS THAT WE WORK SO WELL TOGETHER THAT WE HAVE MOVED FROM A ADMITTEDLY FLAWED POINT IN TIME COUNT OF 2,200 PEOPLE TO ALMOST 1,500.

THE HUNDREDS AND HUNDREDS OF PEOPLE THAT USED TO BE UNSHELTERED IN THIS COMMUNITY ARE BECAUSE OF THE PARTNERSHIP WITH THE HOUSING AUTHORITY AND THE SERVICES THAT YOUR BOARD HAS ALLOWED US TO BUILD UP IN THE HOUSING FOR HEALTH DIVISION.

SO I JUST WANTED TO SAY THANK YOU TO JENNY AND MAKE SURE THE BOARD UNDERSTANDS THAT THAT CONNECTION AND THAT PARTNERSHIP IS WHY WE'VE MADE PROGRESS DESPITE WHAT'S THE CRISIS THAT'S STILL REMAINING.

SO THANK YOU, JENNY, AND TEAM.

- THANK YOU.

- THANK YOU.

SEEING NO ONE ELSE IN THE AUDIENCE.

IS THERE ANYBODY ON THE PHONE? [SILENCE] - WE HAVE NO CALLERS ONLINE CHAIR.

- THANK YOU. I'LL BRING IT BACK TO THE BOARD FOR QUESTIONS OR DISCUSSION.

SUPERVISOR DE SERPA.

- THANK YOU.

UM, THANK YOU TO THE HOUSING AUTHORITY FOR BEING HERE TODAY.

I AM, UM, NOT ON ANY OF THE COMMITTEES THAT HAVE TO DO WITH HOUSING FOR HEALTH OR HOUSING, AND SO I HAD HEARD THAT THE EMERGENCY VOUCHERS WERE GOING AWAY AND I WAS VERY, VERY CONCERNED ABOUT THAT AND I, I NEEDED TO KNOW LIKE WHAT THE PATHWAY FORWARD WAS FOR ALL OF THESE FAMILIES THAT ARE CURRENTLY HOUSED TO SECURE THEIR HOUSING.

AND I FEEL VERY SATISFIED TODAY AFTER HEARING YOUR PRESENTATION.

- THANK YOU. - THANK YOU SO MUCH.

CAN YOU JUST, IF YOU WOULD JUST INDULGE ME A COUPLE OF QUESTIONS UM, HOW MANY PEOPLE, I KNOW THAT TYPICALLY THE WAIT LIST TO GET A VOUCHER IS MANY YEARS LONG.

CAN YOU TELL ME ABOUT HOW MANY PEOPLE ARE ON THAT WAIT LIST NOW AND ABOUT WHAT THE WAIT IS TO GET TO THE TOP IF IT WERE A NORMAL BUSINESS YEAR FOR THE HOUSING AUTHORITY? - YEAH, IT IS NOT A NORMAL BUSINESS YEAR... - RIGHT.

- ... FOR THE HOUSING AUTHORITY.

THERE ARE CURRENTLY ROUGHLY 2000 HOUSEHOLDS ON OUR WAITING LIST.

OUR WAITING LIST HAS BEEN CLOSED SINCE 2019.

AND SO FAMILIES THAT ARE, THOSE 2000 FAMILIES THAT REMAIN ON OUR WAITING LIST HAVE BEEN WAITING UM, WHAT IS THAT, SEVEN YEARS AT THIS POINT IN TIME.

AND OVER THE COURSE OF OUR, YOU KNOW, 50 YEAR HISTORY AND MY 22 YEARS AT THE HOUSING AUTHORITY, IT'S BEEN COMMON FOR FAMILIES TO WAIT BETWEEN SEVEN AND 10 YEARS FOR RENTAL ASSISTANCE ON THAT WAITING LIST.

AND THAT REALLY JUST SPEAKS TO THE DISPARITY BETWEEN THE NEED FOR RENTAL ASSISTANCE AND THE NUMBER OF VOUCHERS THAT WE HAVE IN THE COMMUNITY.

WE ESTIMATE THAT THERE ARE, YOU KNOW, ROUGHLY 20 TO 30,000 HOUSEHOLDS COUNTYWIDE THAT ARE INCOME ELIGIBLE FOR FEDERAL RENTAL ASSISTANCE AND WE HAVE JUST THOSE 6,000 VOUCHERS.

AND SO THAT DISPARITY CREATES THESE VERY LONG WAITS.

- THAT'S WHAT I WAS WORRIED ABOUT.

OKAY.

UM, AND SO IT'LL BE A LITTLE BIT LONGER AS WE TAKE THE EMERGENCY VOUCHERS AND MOVE THEM TO HOUSING CHOICE VOUCHERS.

UM, SO IT'LL BE A, A, A LONGER WAIT FOR PEOPLE.

[01:05:02]

THOSE ARE PRO-, THOSE ARE BUILDINGS THAT ARE LIKE PROJECT BASED VOUCHERS.

- YES, ABSOLUTELY.

AND SO THESE ARE...

- CAN YOU JUST TALK A TINY BIT ABOUT WHAT THAT MEANS...

- YES. - ... FOR THE GENERAL PUBLIC.

- YES. SO... - CAN YOU ALSO PULL THE MIC CLOSER? - I... YES.

LET'S SEE.

IS THAT A LITTLE BETTER? OKAY.

UH, THE HOUSING AUTHORITY HAS A SET NUMBER OF TOTAL VOUCHERS AND MOST OF THESE VOUCHERS ARE WHAT WE CALL HOUSING CHOICE VOUCHERS.

MANY PEOPLE KNOW THEM AS SECTION 8.

IT'S A PORTABLE FORM OF RENTAL ASSISTANCE WHERE PEOPLE CAN UH, RENT A UNIT, ANY UNIT IN THE PRIVATE MARKET WITH THEIR HOUSING CHOICE VOUCHER.

AND, UM, WITH A PROJECT-BASED VOUCHER, THE HOUSING AUTHORITY ENTERS INTO A CONTRACT WITH AN AFFORDABLE HOUSING DEVELOPER.

AND THESE ARE LONG-TERM CONTRACTS.

USUALLY A 20 YEAR PERIOD WHERE AFFORDABLE HOUSING DEVELOPERS WILL APPLY FOR SOME NUMBER OF VOUCHERS.

THEY'LL SAY, WE'RE BUILDING THIS 100 UNIT AFFORDABLE HOUSING DEVELOPMENT, AND WE NEED HELP FUNDING IT.

SO THEY'LL APPLY FOR SOME NUMBER OF VOUCHERS, AND LET'S SAY WE AWARD THEM 25 VOUCHERS.

THAT MEANS THAT IN THIS AFFORDABLE HOUSING DEVELOPMENT SOME PERCENTAGE OF THOSE UNITS, LET'S SAY 25% OF THEM ARE SUPPORTED BY A PROJECT-BASED VOUCHER.

SO THAT MEANS, UM, THERE'S 25 NEW UNITS THAT ARE EXCLUSIVELY AVAILABLE TO HOUSEHOLDS THAT HAVE A VOUCHER.

WHICH IS HELPFUL BECAUSE HISTORICALLY, UM, HOUSEHOLDS THAT HAVE A VOUCHER HAVE STRUGGLED TO FIND UNITS IN THE PRIVATE RENTAL MARKET WITH LANDLORDS THAT SOMETIMES ARE RELUCTANT TO ACCEPT A VOUCHER.

SO IT'S HELPING FAMILIES BECAUSE THERE'S MORE UNITS THAT ARE EXCLUSIVELY AVAILABLE TO HOUSEHOLDS WITH A VOUCHER BUT IT'S ALSO HELPING THOSE PROGRAMS PENCIL OUT BECAUSE IF A AFFORDABLE HOUSING PROJECT HAS AN AWARD OF PROJECT-BASED VOUCHERS THEY'RE MORE COMPETITIVE WHEN THEY APPLY FOR TAX CREDITS AND THEY ALSO HAVE, UM, THEY HAVE, THEY HAVE MARKET RATE RENTS COMING INTO THOSE PARTICULAR UNITS.

SO IT'S HELPING THE PROJECTS, UM, GET ADDITIONAL FUNDING AND IT'S HELPING THEM TO PENCIL OUT ESSENTIALLY.

- UH, JENNY, YOU KNOW ME BECAUSE WE'VE WORKED TOGETHER IN THE - YES. - ... PAST TO HOUSE MANY PEOPLE, INCLUDING PEOPLE WITH PRETTY SERIOUS AND SEVERE DISABILITIES.

UM, SO I, MY NEXT QUESTION, AND MAYBE YOU WON'T KNOW HOW TO ANSWER THIS RIGHT NOW, BUT HOW MANY OF THE, UM, THE UNITS COMING ONLINE WOULD BE ACCESSIBLE FOR PEOPLE WITH DISABILITIES? - WHEN YOU SAY ACCESSIBLE, DO YOU MEAN WHEELCHAIR ACCESSIBLE? - YEAH.

- LIKE ADA ACCESSIBLE? I DON'T HAVE THAT INFORMATION - THAT'S OKAY. - ... AT MY FINGERTIPS.

IT'S CERTAINLY SOMETHING THAT WE CAN PROVIDE TO YOU.

- THANK YOU.

AND REGARDING THE NEW CONCERNS REGARDING CITIZENSHIP, UH, IT, YOU KNOW, BECAUSE I'VE GONE THROUGH THIS PROCESS WITH MANY, UM, PATIENTS AND CLIENTS OVER MY CAREER, THERE ALWAYS WERE, UM, IT SEEMS LIKE THERE WERE ALWAYS, THERE WAS ALWAYS REQUIREMENTS THAT YOU HAD TO BE A US CITIZEN IN ORDER TO RECEIVE A VOUCHER.

SO THE NEW, THE NEW CITIZENSHIP RULES ARE THEY TRYING TO MANDATE THAT EVERYONE IN THE HOUSEHOLD IS A CITIZEN OR WHAT IS... - YES.

- ... WHAT ARE THE CHANGES? - YEAH, THAT'S EXACTLY RIGHT. AND I'LL, I'LL SUMMARIZE IT.

CURRENTLY WITH THE HOUSING CHOICE VOUCHER PROGRAM, WHICH IS A FEDERALLY FUNDED PROGRAM, AT LEAST ONE HOUSEHOLD MEMBER MUST BE A CITIZEN OR LEGAL RESIDENT FOR THAT HOUSEHOLD TO RECEIVE RENTAL ASSISTANCE, AT LEAST ONE HOUSEHOLD MEMBER.

AND THAT ONE HOUSEHOLD MEMBER DOES NOT NEED TO BE, THE HEAD OF HOUSEHOLD, DOES NOT EVEN NEED TO BE AN ADULT.

AND SO WHAT HAPPENS IS IF YOU HAVE A HOUSEHOLD THAT HAS WHAT HUD WOULD CALL MIXED ELIGIBILITY STATUS, SO SOME MEMBERS OF THE HOUSEHOLD ARE CITIZENS OR LEGAL RESIDENTS AND SOME MEMBERS OF THE HOUSEHOLD ARE NOT, THEN THAT FAMILY WILL RECEIVE PRORATED RENTAL ASSISTANCE.

- SO IF 75% OF THE HOUSEHOLD MEMBERS HAVE ELIGIBLE IMMIGRATION STATUS, THEN THAT FAMILY WILL RECEIVE 75% OF THE ASSISTANCE THAT THEY WOULD ORDINARILY BE ELIGIBLE FOR.

IF ONLY 25% OF THE HOUSEHOLD MEMBERS ARE HAVE ELIGIBLE IMMIGRATION STATUS, THEN THEY'RE ONLY GOING TO RECEIVE 25% OF THE RENTAL ASSISTANCE SO THAT'S HOW IT CURRENTLY WORKS.

RIGHT NOW, HUD IS PROPOSING A CHANGE THAT WOULD REQUIRE ALL HOUSEHOLD MEMBERS TO BE CITIZENS OR LEGAL RESIDENTS.

AND THEY ARE NOT PROPOSING THAT THIS CHANGE BE APPLICABLE TO PROSPECTIVE NEW FAMILIES ONLY.

WHAT THEY ARE SAYING IS EVEN FOR THE FAMILIES THAT ARE CURRENTLY RECEIVING RENTAL ASSISTANCE AND IN OUR PROGRAM OF OUR 6,000 FAMILIES THAT WE'RE PROVIDING RENTAL ASSISTANCE TO ABOUT 270 HOUSEHOLDS ARE WHAT HUD WOULD CALL A MIXED ELIGIBILITY STATUS HOUSEHOLD.

IF THESE REGULATIONS ARE, UM, IMPLEMENTED, THEN HOUSEHOLDS WOULD BE REQUIRED TO EITHER

[01:10:02]

- THANK YOU.

- UM, WELL, THANK YOU TOM AND JENNY FOR THE PRESENTATION TODAY.

UM, I'M CAUTIOUSLY OPTIMISTIC, UH, ON, ON YOUR PREDICTION THAT WE'LL BE ABLE TO HOUSE EVERYONE WHO IS, UH, GOING TO LOSE AN EMERGENCY HOUSING VOUCHER HERE.

UM, THAT, THAT'S FANTASTIC NEWS.

AND AS DIRECTOR MOORE HAS POINTED OUT, IT REALLY HAS BEEN THE PRIMARY TOOL THAT WE'VE USED TO REDUCE HOMELESSNESS BY NEARLY 40% IN THE COUNTY OVER THE LAST FEW YEARS.

SO, UM, HOPEFULLY WE CAN AT LEAST MAINTAIN THAT PROGRESS AND WE THANK YOU FOR ALL THE WORK THAT YOU'RE DOING, UH, TO ENSURE WE DON'T GO BACK.

UM, IT... ONE QUESTION THAT WAS RAISED, I MEAN, YOU, THANK YOU FOR THE ANSWER FOR, UH, REGARDING MIXED, UH, MIXED STATUS HOUSEHOLDS.

YOU KNOW, THIS OTHER CONCERN THAT CAME UP WAS THAT PEOPLE WHO ARE NOT FROM SANTA CRUZ COUNTY ARE RECEIVING VOUCHERS DO YOU HAVE ANY, LIKE, OF THE 6,000 PEOPLE OR MAYBE, MAYBE IT'S MORE OF AN ISSUE WITH THE EMERGENCY HOUSING VOUCHERS.

I MEAN, IS THERE SOME PERCENTAGE, UH, OF THOSE, I MEAN, OR, OR CAN YOU EVEN ASK THAT QUESTION GIVEN THAT YOU'RE A FEDERALLY FUNDED PROGRAM? - YES, WE CAN ASK THAT QUESTION.

I DON'T HAVE EXACT NUMBERS AT MY FINGERTIPS.

I CAN TELL YOU THAT, UH, A MAJORITY OF OUR HOUSEHOLDS, UM, LIVED OR WORKED IN THE COUNTY OF SANTA CRUZ WHEN THEY RECEIVED THEIR RENTAL ASSISTANCE.

AND IN FACT, WE HAVE A WAITING LIST PREFERENCE, A WEIGHTED WAITING LIST PREFERENCE, SUCH THAT AT LEAST 75% OF THE VOUCHERS THAT WE ISSUE GO TO HOUSEHOLDS WHERE THE HEAD OF HOUSEHOLD OR SPOUSE LIVES WORKS OR HAS BEEN HIRED TO WORK IN SANTA CRUZ COUNTY.

- THANK YOU. YEAH. I MEAN, THAT'S MY EXPERIENCE WITH THESE KINDS OF CONCERNS IS THAT OFTEN THEY'RE, IT'S, IT'S, IT'S NOT AS BIG OF A PROBLEM AS PEOPLE, THINK IT MIGHT BE BECAUSE, UM, I MEAN, FIRST OF ALL, NATURALLY WE HAVE PLENTY OF PEOPLE WHO HAVE A NEED WHO LIVE AND WORK HERE IN SANTA CRUZ COUNTY, AND IT'S GOOD TO HEAR THAT THERE IS A WAITING AS WELL.

UM, YOU KNOW, THERE'S ALSO, UH, THANK YOU FOR THE DESCRIPTION ABOUT PROJECT-BASED VOUCHERS.

UM, AND THERE'S 25 CURRENTLY COMPLETE AND 20 MORE IN THE PIPELINE.

DOES THE 21 IN THE PIPELINE INCLUDE PACIFIC STATION AND SOME OF THE OTHER PROJECTS DOWNTOWN? - YES, IT DOES.

- OKAY. THAT'S ACTUALLY LESS THAN I WAS EXPECTING.

I MEAN, SO I MEAN OF 6,000 VOUCHERS, ONLY 46 IN THE NEAR FUTURE ARE GONNA, ARE GONNA BE PROJECT BASED - WELL, OF THE 6,000 VOUCHERS, UM...

LET'S SEE. I ACTUALLY HAVE THAT NUMBER HANDY.

SO CURRENTLY WE HAVE 898 OF THE 6,000 VOUCHERS THAT ARE COMMITTED TO ONE OF THOSE 25 PROJECTS.

AND THEN IN THE PIPELINE THERE'S ABOUT 700 MORE VOUCHERS THAT ARE COMMITTED TO THOSE OTHER 20 PROJECTS.

BUT THOSE 700 VOUCHERS THAT ARE COMMITTED TO THOSE OTHER 20 PROJECTS ARE HELPING TO BRING OVER 1600 AFFORDABLE UNITS TO OUR COMMUNITY.

- GOTCHA. SO THOSE NUMBERS WERE PROJECTS, NOT, NOT ACTUAL VOUCHERS? - YES, YES.

YOU SAID 898 OF THE TOTAL IS CURRENTLY...

- THAT'S CORRECT.

- AND, AND SOMETHING LIKE 700 PLUS IS IN THE PIPELINE.

- YES. - SO ACTUALLY WE'RE LOOKING AT MORE LIKE 1500 UNITS THAT WILL BE PRO- OR, OR VOUCHERS THAT WILL BE PROJECT BASED.

- YES.

- GREAT. THAT'S FANTASTIC.

I MEAN, UM, ONE OF THE CONCERNS I'VE HEARD, UM, ABOUT THE, THE VOUCHER PROGRAM IS THAT IT ACTUALLY, UM, YOU KNOW, AUGMENTS THE AMOUNT OF, OF RENT THAT PEOPLE NOT ON THE VOUCHER PROGRAM END UP HAVING TO PAY BECAUSE THEY'RE, IF YOU, IF YOU DON'T HAVE A VOUCHER, YOU'RE STILL COMPETING WITH SOMEONE WHO DOES AND, UM, THAT AS WE SEE SUPPLY, UH, OR, OR DEMAND INCREASE OR DECREASE IN THE MARKET.

I MEAN, WE SAW A HUGE INCREASE DURING COVID, WE'VE SEEN A LITTLE BIT MORE OF A SOFTENING RECENTLY, PARTICULARLY SOME OF THE, SOME OF THE NEW HOUSING COMING ONLINE.

BUT, UM, IF THERE'S THAT COMPETITION OUT THERE FROM FOLKS WHO HAVE VOUCHERS, THEN UM, THE PRICES WILL NOT FALL AS QUICKLY.

AND SO SEEING YOU GUYS ACTIVELY GET INVOLVED IN THAT, IN BUILDING SUPPLY IS FANTASTIC BECAUSE I THINK THAT WILL JUST HELP, UH, TAKE THE PRESSURE OFF THE REST OF THE MARKET FASTER.

UM, AND I'M ALSO REALLY GLAD TO SEE YOU GUYS BUILDING, UH, IN OUR COUNTY, AND PARTICULARLY IN DISTRICT 1.

SO, UM, THE SANTA CLARA PROJECT THAT WOULD, I ASSUME USE A PROJECT BASED, BASED VOUCHER FOR EACH UNIT, LIKE, SO 60 PLUS VOUCHERS.

- ACTUALLY, WE'RE HOPING TO AVOID THE USE OF PROJECT BASED VOUCHERS TO THE EXTENT POSSIBLE AT THAT PROJECT.

I MEAN, WE REALLY WANNA PRESERVE THE VOUCHERS THAT WE HAVE AND USE THEM SPARINGLY TO SUPPORT AS MANY NEW PROJECTS AS, AS POSSIBLE.

SO I WOULDN'T RULE IT OUT, UM, THE USE OF PROJECT-BASED VOUCHERS AT, AT ANY OF OUR PROJECTS BUT WE'RE NOT NECESSARILY PLANNING TO USE VOUCHERS THERE.

THERE'S ANOTHER FORM OF FUNDING THAT WE'RE EXPLORING FOR THAT PROPERTY.

- GOTCHA. SO YOU LOOK AT TAX CREDITS AND SORT OF HOW MANY UNITS YOU CAN PROVIDE IS AFFORDABLE,

[01:15:02]

- OKAY.

UM, MY FINAL QUESTION IS, CAN SOMEONE...

IF SOMEONE IS CURRENTLY RECEIVING A HOUSING CHOICE VOUCHER AND RENTING SOMETHING ON THE OPEN MARKET, CAN YOU MOVE THAT TO A HOUSING CHOICE VOUCHER BUT MAINTAIN THE SAME RECIPIENT? SO YOU SAY, YOU KNOW, LET'S SAY THE SANTA CLARA PROJECT OPENS UP AND YOU HAVE A PROJECT BASED VOUCHER SORT OF ALLOCATED ON THE SPREADSHEET THERE.

CAN YOU SAY, HEY, THERE'S THIS OPPORTUNITY NOW FOR YOU TO MOVE INTO, UH...

WE, WE, WE'D L-, WE'D, WE'D LIKE TO SHIFT THIS FROM A HOUSING CHOICE VOUCHER TO A PROJECT BASED VOUCHER.

YOU'RE STILL GONNA BE THIS RECIPIENT, STILL A TWO BEDROOM WHATEVER, SAME TYPE OF HOUSING.

UM, BUT WE'D, YOU KNOW, WE'D LIKE YOU TO MOVE SO THAT WE CAN CHANGE THIS TO A HOUSING OR A PROJECT BASED VOUCHER.

- I DON'T KNOW IF I ENTIRELY UNDERSTAND YOUR QUESTION, BUT, UM, WE CERTAINLY WOULDN'T BE ABLE TO REQUIRE A HOUSEHOLD TO SURRENDER THEIR UNIT OR SURRENDER THE TYPE OF RENTAL ASSISTANCE THAT THEY'RE RECEIVING.

IF SOMEONE IS LIVING IN A PROJECT-BASED VOUCHER UNIT THEY WOULD HAVE THE OPPORTUNITY TO MOVE IF THEY WANTED TO WITH A REGULAR HOUSING CHOICE VOUCHER.

I, I, I BELIEVE THAT I'M MISSING SOMETHING ABOUT YOUR QUESTION.

I'M SORRY. - WELL, I MEAN, AT THE END OF THE DAY, I DO THINK YOU'RE, YOU PROVIDE MORE TO THE COMMUNITY WITH PROJECT BASED VOUCHERS.

I MEAN, AS YOU SAID, THOSE VOUCHERS DO DOUBLE DUTY BECAUSE THEY'RE ACTUALLY CREATING MORE SUPPLY.

AND SO TO THE EXTENT THAT WE COULD MOVE EXISTING HOUSING CHOICE VOUCHERS TO PROJECT BASED VOUCHERS, I MEAN, THAT'S ALREADY HAPPENED A LOT 1500 OUTTA 6,000.

- I SEE. - COULD YOU CONTINUE TO DO THAT AS NEW PROJECTS OPEN UP BECAUSE YOU'RE BASICALLY TAKING THE SAME HOUSEHOLD AND JUST MOVING THEM INTO A NEW PROJECT AND IT'S GOING FROM A HOUSING CHOICE VOUCHER TO A PROJECT BASED VOUCHER.

- YES. I THINK I FOLLOW YOU NOW AND YES, YES. - OKAY.

THAT IS SOMETHING THAT WE, UH, WE COULD DO.

- ALRIGHT, GREAT. THANK YOU.

AND, AND IF THE RECIPIENT AGREES TO IT, YOU'RE SAYING? - YES. - GOTCHA. ALRIGHT, THANKS.

- SUPERVISOR CUMMINGS.

- THANK YOU CHAIR AND JENNY, THANKS FOR ALL THE WORK THAT YOU ALL DO AT THE HOUSING AUTHORITY TO TRY TO HELP GET, UM, PEOPLE EXPERIENCING POVERTY OFF THE STREETS AND INTO STABLE HOUSING.

UM, IT'S DEFINITELY SOMETHING THAT, YOU KNOW, WE HEAR FROM OUR COMMUNITY IS, IS PRIORITY AND SO JUST WANNA APPRECIATE ALL THE WORK THAT YOU ALL HAVE DONE AND ALSO THE CREATION OF THIS NEW AFFORDABLE HOUSING UM, DEVELOPER OUT OF, UM, ENTITY, UH, THE NONPROFIT.

IT'S REALLY GREAT TO SEE THAT THAT IS NOW SOMETHING THAT, UM, IS NEW TO THE COMMUNITY AND SOMETHING THAT WE CAN ALL HELP SUPPORT.

UM, AND SO I GUESS ONE OF THE QUESTIONS I HAVE IS THERE OPPORTUNITIES, LIKE, FOR EXAMPLE, IF THERE ARE PHILANTHROPIC DONORS THAT ARE INTERESTED IN HELPING TO SUPPORT AFFORDABLE HOUSING.

DO, DOES THAT NONPROFIT ACCEPT DONATIONS TOWARDS HOUSING CREATION? I'M JUST TRYING TO THINK OF, YOU KNOW, HOW YOU GUYS ARE GETTING CREATIVE AROUND, UM, FUNDING FOR PROJECTS AND IF THERE'S A OPPORTUNITY FOR PRIVATE SECTOR FOLKS TO HELP SUPPORT YOUR PROJECTS.

- YES, THERE ABSOLUTELY IS.

UM, SO WE, OUR NONPROFIT AFFILIATE WOULD ACCEPT DONATIONS FROM THE PRIVATE SECTOR OR FROM, UM, PHILANTHROPIC ENTITIES.

- GREAT. THANKS.

GOING BACK TO THE KIND OF, UM, YOU KNOW THE FOLKS THAT ARE ON THE WAIT LIST.

THEY RECEIVE, UM, HOUSING VOUCHER AND KIND OF THE PROCESS THAT PEOPLE HAVE TO GO THROUGH TO FIND HOUSING.

I WONDER IF YOU CAN JUST SPEAK TO THAT A LITTLE BIT AND LIKE HOW MUCH TIME PEOPLE HAVE TO KIND OF FIND A SECURE LOCATION WHERE THEY CAN RENT.

- SURE. UM, SO I DO WANNA REMIND THE BOARD THAT WE'RE NOT ISSUING VOUCHERS CURRENTLY.

BUT JUST KIND OF WALKING THROUGH THE PROCESS PEOPLE WAIT MANY, MANY YEARS, OF COURSE TO GET ONTO THE TOP OF THE WAITING LIST.

THEN THEY HEAR FROM THE HOUSING AUTHORITY THEY FILL OUT A LENGTHY APPLICATION THEY PROVIDE A GREAT DEAL OF INFORMATION ABOUT THEIR HOUSEHOLD COMPOSITION, THEIR INCOME, THEIR ASSETS.

IT OFTEN TAKES 60 DAYS TO GO THROUGH THE APPLICATION PROCESS.

FINALLY, UM, IN THIS SCENARIO, LET'S SAY THEY'RE SUCCESSFUL THEY'RE ELIGIBLE FOR A VOUCHER, THEY RECEIVE A HOUSING CHOICE VOUCHER, THEN WHAT? IF THEY ARE LIVING IN A UNIT WHERE THEIR HOUSEHOLD WOULD ACCEPT THAT VOUCHER, THEY MAY BE ABLE TO REMAIN EXACTLY WHERE THEY ARE, AND THAT'S, THAT'S OFTEN IDEAL.

IF THEY'RE NOT HAPPY WHERE THEY ARE OR IF THEY'RE NOT IN A UNIT THAT THEY THINK MIGHT PASS AN INSPECTION OR FOR WHATEVER OTHER REASON THEY, THEY'RE WANTING TO MOVE, NOW THEY HAVE THE, UM, THE TASK OF GOING OUT INTO THE PRIVATE RENTAL MARKET AND FINDING A UNIT, UM, WHERE THE LANDLORD IS WILL ACCEPT THE VOUCHER.

AND OF COURSE, LANDLORDS ARE PROHIBITED FROM DISCRIMINATING AGAINST HOUSEHOLDS ON THE BASIS OF HAVING A HOUSING CHOICE VOUCHER.

BUT WE DO STILL FIND THAT SOME LANDLORDS ARE RELUCTANT TO ACCEPT VOUCHERS.

WE PROVIDE EACH HOUSEHOLD WITH A MINIMUM OF 180 DAYS OF SEARCH TIME, SO THAT IS SIX MONTHS, SIX MONTHS OF SEARCH TIME.

PEOPLE WITH DISABILITIES CAN GET AN EXTENSION FOR AN ADDITIONAL 90 DAYS.

THAT WOULD BE NINE MONTHS OF SEARCH TIME.

[01:20:02]

SO THE SUCCESS RATE MEASURES THE PERCENTAGE OF PEOPLE WHO RECEIVE A VOUCHER, HOW MANY OF THOSE, WHAT PERCENTAGE OF THOSE SUCCESSFULLY LEASE UP, FIND A UNIT AND BECOME HOUSED AND START RECEIVING RENTAL ASSISTANCE? YOU KNOW, FIVE OR SIX YEARS AGO, THAT PERCENTAGE WAS CLOSE TO 50%.

MEANING THAT JUST ABOUT HALF JUST IMAGINE THE HEARTBREAK OF WAITING 10 YEARS ON A LIST, FINALLY GETTING YOUR OPPORTUNITY FOR LIFE-CHANGING RENTAL ASSISTANCE, AND THEN AFTER SIX MONTHS NOT BEING ABLE TO FIND A UNIT.

WE'VE IMPROVED OUR SUCCESS RATE IT'S ABOUT 77% NOW, AND SO IT IS GOING IN THE RIGHT DIRECTION.

WE ATTRIBUTE THAT TO, UM, CONDUCTING FMR STUDIES THAT HELP KEEP OUR VOUCHER PAYMENT STANDARDS IN LINE WITH THE ACTUAL RISING COSTS OF MARKET RENTS.

IT MAKES EACH ONE OF THOSE VOUCHERS MORE MARKETABLE IN THE RENTAL MARKET.

AND WE ALSO HAVE A NUMBER OF LANDLORD INCENTIVES, SOME OF WHICH ARE FUNDED THROUGH THE COUNTY.

SO WE APPRECIATE THAT VERY MUCH.

AND ALL OF THESE INTERVENTIONS HAVE BEEN SOMEWHAT SUCCESSFUL IN HELPING CONNECT PEOPLE THAT HAVE A VOUCHER TO A UNIT.

- THANKS. I'M JUST ALSO CURIOUS HOW THIS, HOW YOUR EFFORTS COMPARE TO OTHER KIND OF HOUSING AUTHORITIES THROUGHOUT THE STATE.

UM, JUST TRYING TO, UM, HELP US UNDERSTAND UH, BECAUSE, YOU KNOW, MY UNDERSTANDING IS THAT SOME JURISDICTIONS AREN'T AS SUCCESSFUL AT HOUSING AND GETTING VOUCHERS AND KEEPING AT PACE WITH THE MARKET.

AND SO I'M JUST WONDERING HOW DO WE COMPARE, BECAUSE YOU KNOW, THERE MAY BE OPPORTUNITIES TO HAVE CONVERSATIONS AND I DON'T KNOW IF YOU ALL ARE HAVING CONVERSATIONS WITH THE OTHER HOUSING AUTHORITIES, BUT I KNOW THAT THERE ARE COMMUNITIES THAT ARE REALLY CURIOUS ABOUT, YOU KNOW, HOW EFFECTIVE THE HOUSING AUTHORITY IS, WHERE THEY LIVE AND HOW THAT SUCCESS CAN BE REPLICATED.

- YES, WE SPEAK, WE PARTICIPATE IN HOUSING AUTHORITY INDUSTRY GROUPS.

WE'RE A MEMBER OF THE CALIFORNIA ASSOCIATION OF HOUSING AUTHORITIES.

UM, AND WE'RE HAPPY TO ENGAGE IN MORE CONVERSATIONS.

I'M REALLY PROUD OF OUR TRACK RECORD ON THIS.

SO, FIRST OF ALL, IF YOU LOOK AT OUR PROGRAM UTILIZATION UM, WE HAVE, WE ARE USING 99% OF OUR VOUCHERS AND 100% OF OUR DOLLARS.

AND IF YOU COMPARE THAT TO THE STATE AVERAGE AND THE NATIONAL AVERAGE, THE STATE AVERAGE VOUCHER UTILIZATION IS ABOUT 86%, AND THE NATIONAL AVERAGE IS ABOUT 87%.

AND SO WE HAVE, UM, ACHIEVED A MUCH HIGHER LEVEL OF PROGRAM UTILIZATION DESPITE THE FACT THAT WE ARE OPERATING IN ONE OF THE MOST EXPENSIVE AND COMPETITIVE RENTAL MARKETS IN THE UNITED STATES.

SO THAT I THINK, SPEAKS HIGHLY TO THE PERFORMANCE OF OUR HOUSING CHOICE VOUCHER PROGRAM.

THERE IS A LOT OF VARIATION IN DIFFERENT COMMUNITIES.

YOU'RE RIGHT THAT NOT EVERY COMMUNITY PROVIDES AS MUCH VOUCHER SEARCH TIME.

NOT EVERY COMMUNITY CONDUCTS FAIR MARKET RENT STUDIES, AND SO MANY COMMUNITIES REALLY STRUGGLE TO KEEP THEIR VOUCHER PAYMENT STANDARDS COMPETITIVE WITH MARKET RENTS.

AND MOST HOUSING AUTHORITIES DO NOT HAVE LANDLORD INCENTIVE PROGRAMS, BONUSES FOR LANDLORDS THAT WILL ACCEPT PEOPLE EXPERIENCING HOMELESSNESS AND LOSS MITIGATION PROGRAMS WHERE IF LANDLORDS CAN FILE A CLAIM IF THERE'S DAMAGE TO THEIR UNIT.

SO WE'RE KIND OF AN OUTLIER IN, IN THAT RESPECT.

AND PART OF THAT IS BECAUSE WE'VE HAD THE SUPPORT OF THE COUNTY AND THE CITIES OF THE JURISDICTION TO SUPPORT SOME OF THOSE LANDLORD INCENTIVE PROGRAMS, BUT ALSO BECAUSE OF THE MTW ADMINISTRATIVE FLEXIBILITY THAT WE HAVE.

SO IN SOME CASES WE HAVE MORE FLEXIBILITY, UM, THAN OTHER HOUSING AUTHORITIES DO.

- GREAT. WELL, I JUST HOPE THAT AS WE CONTINUE TO GET CREATIVE WITH, UM, DEVELOPMENT, AS WE SEE A LOT MORE DEVELOPMENT COME ONLINE, WE'RE ABLE TO HELP MORE OF THESE FOLKS GET INTO THESE NEWER UNITS.

UM, ONE OF THE THINGS THAT I'VE BEEN ADVOCATING FOR AT THE BOARD IS US TO HAVE A CARVE OUT, SIMILAR TO THE CITY OF SANTA CRUZ, OF HAVING 5% OF NEW UNITS BE AVAILABLE FOR VOUCHER HOLDERS.

AND I'M HOPING THAT WE CAN CONTINUE IS TRY TO GET CREATIVE SO THAT WE CAN GET FROM, YOU KNOW, WHAT WAS ONCE 50% UTILIZATION TO 77 TO 100%, AND MAKING SURE THAT WE GET PEOPLE UM, WHO DESPERATELY NEED THIS HOUSING HOUSED.

SO THANK YOU FOR BEING HERE TODAY FOR THIS PRESENTATION.

- THANK YOU.

- SUPERVISOR HERNANDEZ.

- WELL, THANK YOU FOR ALL THE WORK YOU GUYS DO UM, TO PROVIDE HOUSING.

YOU MENTIONED THAT THERE MAY BE SOME NEGATIVE IMPACTS OR REQUIREMENTS POSSIBLY COMING DOWN THE PIPELINE, UM, AND THAT THEY MAY BE OPTIONAL TO EVERY, UH, HUD OFFICE.

BUT YOU KNOW, YOU KNOW THE, IF THERE'S ANY UNCERTAINTY, UH, IT'S CERTAINLY WHAT THIS ADMINISTRATION MAY DO NEXT.

UM, IS THERE ANY DISCUSSIONS, YOU KNOW, I KNOW YOU SAID THAT YOU GUYS MEET AS AN ASSOCIATION.

IS THERE ANY DISCUSSIONS WITH OTHER HUD OFFICES ABOUT A CONTINGENCY PLAN IF, YOU KNOW, THE ADMINISTRATION

[01:25:01]

AND THERE'S EVEN SOME LEGISLATION THAT'S BEING CONSIDERED THAT WOULD REQUIRE HOUSING AUTHORITIES NOT TO ADOPT CERTAIN DISCRETIONARY POLICIES, UM, PROPOSED BY THE INCOMING ADMINISTRATION.

UM, THIS HAS BEEN...

THERE ARE SOME STATES THAT HAVE PASSED LAWS THAT SAID TO THE EXTENT THAT A HOUSING AUTHORITY MAY REQUIRE UM, YOU KNOW, HAVE WORK REQUIREMENTS, THEN THAT HOUSING AUTHORITY MUST.

IN OUR STATE, THERE'S PROPOSED LEGISLATION CONSIDERING THE OPPOSITE, UM, THAT WOULD PROHIBIT HOUSING AUTHORITIES FROM ADOPTING SUCH POLICIES IF, IF THE RULES ARE CHANGED TO ALLOW THEM.

DOES THAT MAKE SENSE? SO THERE'S, SO THERE'S LEGISLATION THAT'S INTENDED TO PROTECT HOUSING AUTHORITIES FROM BEING REQUIRED TO ADOPT POLICIES THAT MAY BE HARMFUL TO OUR FAMILIES.

- IF YOU DON'T MIND KEEPING US POSTED ON THIS LEGISLATION OR OUR BOARD CHAIR POSTED SO WE CAN DO SOME LETTERS OF SUPPORT.

- ABSOLUTELY. IN FACT, BEYOND THAT, YOU KNOW, WE ARE PREPARING TO OPPOSE THE NEW PROPOSED REGULATIONS RELATED TO CITIZENSHIP AND LEGAL, UM, RESIDENCY, AND I WOULD APPRECIATE THE BOARD'S SUPPORT IN OPPOSING THAT IF THAT'S SOMETHING THAT YOU WOULD CONSIDER.

SO I'LL REACH OUT TO STAFF WITH MORE INFORMATION ABOUT THAT.

- THANK YOU. AND THE CITIES TOO, ESPECIALLY WATSONVILLE.

- YES. - OKAY.

THANK YOU.

- THANK YOU.

WELL, I JUST WANNA START OFF BY APPRECIATING THE VERY INFORMATIVE PRESENTATION.

UM, I THINK YOU ANSWERED A LOT OF QUESTIONS ABOUT THE STATUS OF THE HOUSING AUTHORITY AND WHAT BECAME CLEAR TO ME IS THAT THE HOUSING AUTHORITY IS IN SUCH COMPETENT HANDS.

UM, YOU KNOW, YOUR AGENCY WAS FACING A CLIFF AS IT RELATED TO THE, UM, EMERGENCY HOUSING VOUCHER PROGRAM AND TO SEE HOW DILIGENTLY YOU PUT TOGETHER A PLAN, UM, AND THEY ARE CONTINUING TO IMPLEMENT A PLAN TO AVOID 250 FAMILIES FROM FALLING INTO HOMELESSNESS, IT'S INCREDIBLE WORK.

IT'S A, UM, YOU GUYS ARE UNSUNG HEROES WHEN IT COMES TO PREVENTING HOMELESSNESS.

UM, SO THANK YOU SO MUCH FOR THAT INCREDIBLE WORK.

UM, I DID, KIND OF FOLLOWING UP ON WHAT I HEARD FROM SUPERVISOR HERNANDEZ, UM, AS BOARD MEMBERS, YOU KNOW, WE ARE OFTEN DOING ADVOCACY AND SPEAKING WITH OUR STATE AND FEDERAL REPRESENTATIVES AND, UM, YOU KNOW, WE HEAR THE THREATS THAT THE HOUSING AUTHORITY AND HOUSING PROGRAMS ARE FACING.

UM, IS THERE ANY ADVOCACY THAT YOU WOULD ADVISE US TO BE A PART OF, UM, OR ANYTHING WE CAN DO ON YOUR BEHALF TO SUPPORT OUR RESIDENTS? - ABSOLUTELY. AND I, I'D LIKE TO, YOU KNOW, REACH OUT, YOU KNOW, SEPARATELY TO THE BOARD AND TO STAFF, UM, BECAUSE I DON'T HAVE A PRIORITIZED LIST AT MY FINGERTIPS.

I THINK IT WOULD START WITH OPPOSITION TO, UM, THE PROPOSED REGULATIONS REGARDING MIXED CITIZENSHIP ELIGIBILITY STATUS FAMILIES THAT WOULD BE NUMBER ONE, AND FUNDING.

JUST FUNDING FOR THE VOUCHER PROGRAM WOULD BE NUMBER TWO.

AND SO THERE'S PROBABLY A FEW OTHER HIGH PRIORITIES WHERE, UM, YOU KNOW, THE BOARD MAY BE HELPFUL IN HELPING TO ADVOCATE FOR US.

CERTAINLY THOSE ARE ONE AND TWO.

AND MAYBE I COULD GET BACK TO YOU ON SOME OF THE OTHER PRIORITIES.

- THANK YOU.

AND THEN, YOU KNOW, WHAT MESSAGE WOULD YOU HAVE TO THE PUBLIC, UM, PERHAPS LANDLORDS WHO ARE OUT THERE WHO MAY CONSIDER ACCEPTING VOUCHERS OR FOLKS WHO ARE, UM, SEEKING HOUSING.

IS THERE ANYTHING THAT YOU'D LIKE TO SHARE TO THE PUBLIC RIGHT NOW? - THOSE WOULD BE A LITTLE BIT DIFFERENT MESSAGES.

UM, WE'RE, WE'RE CERTAINLY, UM, DOING OUR BEST TO ATTRACT AND RETAIN OUR LANDLORDS.

YOU KNOW, IF YOU'RE A LANDLORD OUT THERE, IF YOU'VE HAD A BAD EXPERIENCE IN THE PAST, IF YOU HAVEN'T PARTICIPATED IN A HOUSING AUTHORITY PROGRAM LATELY, MAYBE GIVE US ANOTHER LOOK BECAUSE, UM, WE HAVE CHANGED A LOT.

OUR VOUCHER PAYMENT STANDARDS ARE KEEPING UP WITH MARKET RENTS MORE THAN EVER BEFORE, AND WE'VE GOT A PRETTY NICE SUITE OF INCENTIVES FOR LANDLORDS, INCLUDING ASSIGNING BONUS AND A LOSS MITIGATION PROGRAM.

HOW MANY TENANTS COME WITH A GUARANTEE? UM, SO WE THINK WE PUT TOGETHER A PRETTY GOOD PACKAGE TO ATTRACT AND RETAIN LANDLORDS AND PROVIDE MORE HOUSING CHOICES TO OUR FAMILIES.

AND, UM, YOU KNOW, TO FAMILIES THAT ARE PARTICIPATING IN OUR PROGRAMS, I THINK A LOT OF FAMILIES ARE CONCERNED WHEN THEY SEE THE NEWS AND THEY HEAR ABOUT FUNDING CUTS.

UH, WE DO NOT ANTICIPATE THAT FAMILIES THAT ARE ALREADY RECEIVING ASSISTANCE WITH A HOUSING CHOICE VOUCHER WILL BE IMPACTED AT ALL.

AND SO IT'S REALLY JUST A MATTER OF CAN WE PROVIDE ENOUGH FUNDING TO GIVE A VOUCHER TO EVERY SINGLE EMERGENCY HOUSING VOUCHER RECIPIENT AND FOR THE MANY THOUSANDS OF FAMILIES THAT ARE ON OUR WAITING LIST OR THAT AREN'T EVEN ON OUR WAITING LIST.

BECAUSE OUR WAITING LIST IS CLOSED AND THEY'RE WAITING FOR AN OPPORTUNITY JUST TO WAIT.

UH, WE ASK FOR YOUR PATIENCE AND ALSO CONTINUED ADVOCACY, BUT ALSO PLEASE DON'T GIVE UP.

[01:30:03]

- THANK YOU SO MUCH.

UM, WELL WE REALLY APPRECIATE THE PRESENTATION AND ALL THE GOOD WORK THAT YOU'RE DOING IN THE COMMUNITY.

KEEP UP THE GOOD WORK AND UM, WE REALLY APPRECIATE THE OPPORTUNITY TO PARTNER WITH YOU.

- THANK YOU.

- SO GOING BACK TO TODAY'S AGENDA, WE HAVE A SCHEDULED ITEM AT 10:45.

THAT'LL BE VERY, WE ANTICIPATE WILL BE VERY BRIEF.

UM, AND WE ALSO HAVE AGENDA ITEM NUMBER NINE ON THE REGULAR AGENDA THAT WE ANTICIPATE WILL BE BRIEF AS WELL.

SO WHAT I'D LIKE TO DO IS CALL AGENDA ITEM NUMBER NINE, THEN IF THERE'S TIME, WE'LL TAKE A FIVE MINUTE BREAK OR SO.

COME BACK FOR THE 10:45 SCHEDULED ITEM AND IMMEDIATELY FOLLOWING THAT WE'LL GO TO ITEM NUMBER EIGHT, WHICH I EXPECT MIGHT TAKE A LITTLE BIT LONGER.

UM, SO I THINK THAT'LL BE PROBABLY AROUND 10:50.

SO WITH THAT, I'M GOING TO INTRODUCE ITEM NUMBER NINE,

[9. Consider approving in concept "An Ordinance Amending Sections 2.37.030 and 2.37.040 of the Santa Cruz County Code (Purchasing Procedures)", and take related actions]

AND TODAY WE HAVE A PRESENTATION FROM OUR DIRECTOR OF GSD MS. FINLEY.

- GOOD MORNING CHAIR AND MEMBERS OF THE BOARD.

UH, MY NAME IS KIMBERLY FINLEY.

I'M THE DIRECTOR OF GENERAL SERVICES.

UM, ITEM NINE IS A REQUEST TO APPROVE IN CONCEPT AN ORDINANCE AMENDING SECTION 2.37.030 AND 2.37.040 OF THE SANTA CRUZ COUNTY CODE RELATED TO PURCHASING PROCEDURES.

THE PROPOSED ORDINANCE UPDATES THE COUNTY CODE WITH PURCHASING PROCEDURE CHANGES BY INCREASING THE DOLLAR THRESHOLD FROM 5,000 TO $10,000 UNDER WHICH DEPARTMENTS MAY DECLARE PERSONAL PROPERTY AS SURPLUS THIS CHANGE ALIGNS WITH THE COUNTY, ALIGNS THE COUNTY CODE WITH THE AUDITOR CONTROLLER'S CURRENT CAPITAL ASSET THRESHOLD OF $10,000.

THE ITEM ALSO IMPROVES ADMINISTRATIVE EFFICIENCY, REDUCES UNNECESSARY DELAYS, AND ALLOWS DEPARTMENTS TO OPERATE MORE EFFICIENTLY WHILE MAINTAINING FISCAL SAFEGUARDS.

WE THEREFORE RECOMMEND THAT THE BOARD APPROVE THIS ORDINANCE IN CONCEPT.

STAFF WILL RETURN TO YOUR BOARD ON MARCH 10TH FOR A SECOND READING AND FINAL ADOPTION.

ADDITIONALLY, WE REQUEST THAT YOU DIRECT THE CLERK OF THE BOARD TO PUBLISH THE NOTICE OF PROPOSED ORDINANCE SUMMARY IN A NEWSPAPER OF GENERAL CIRCULATION AT LEAST FIVE DAYS PRIOR TO THIS SCHEDULED SECOND READING, UM, PURSUANT TO GOVERNMENT CODE SECTION 25124.

SO BASICALLY THIS IS JUST AN ADMINISTRATIVE CHANGE WHICH WOULD, UH, CHANGE THE THRESHOLD FOR INTERNAL UH, DEPARTMENTS DECLARING SURPLUS FROM $5,000 TO $10,000 WITHOUT NEEDING TO COME TO THE BOARD.

THAT IS THE CONCLUSION OF MY SHORT PRESENTATION AND I'M AVAILABLE FOR QUESTIONS.

- THANK YOU. ARE THERE ANY QUESTIONS FROM THE BOARD? SEEING NONE. I'D LIKE TO OPEN IT UP TO PUBLIC COMMENT.

IS ANYBODY IN THE ROOM HERE TO SPEAK ON PUBLIC COMMENT ON THIS ITEM? - ITEM NINE RIGHT? - THIS IS ITEM NUMBER NINE, YES.

- GOOD MORNING.

UM, [INAUDIBLE].

- LET'S GIVE A MOMENT AND WE'LL START THE CLOCK ONCE YOUR MIC WORKS. - NO PROBLEM.

- ALL RIGHT.

- 100 UNITS? NO. MY BAD.

- ARE YOU HERE TO SPEAK ON, UH, HOUSING PROJECT? - YES.

- OKAY. UM, THAT WILL BE AROUND 10:50 OR SO.

THANK YOU.

ANY COMMENTS ON ITEM NUMBER, [LAUGHS] NUMBER NINE? ANYBODY ON IN, ON THE PHONE? - WE HAVE NO CALLERS ONLINE CHAIR.

- SO MOVED CHAIR.

- UM, THANK YOU.

WE HAVE A...

WHAT'S THAT? WE HAVE A MOTION FROM SUPERVISOR HERNANDEZ.

THAT WAS QUICK. - SECOND.

- AND WE HAVE A SECOND FROM SUPERVISOR CUMMINGS.

UM, MADAM CLERK, WILL YOU PLEASE CALL THE ROLL.

- SUPERVISOR HERNANDEZ. - AYE.

- CUMMINGS.

- AYE.

- KOENIG.

- AYE.

- DE SERPA.

- AYE.

- AND MARTINEZ. - AYE.

MOTION PASSES 5 TO ZERO.

SO WE WILL NOW TAKE A 10 MINUTE RECESS AND RETURN AT 10:45 FOR OUR SCHEDULED ITEM.

AND FOLLOWING THAT WE WILL RETURN TO ITEM NUMBER EIGHT, WHICH IS THE PUBLIC HEARING RELATED TO 5940 SOQUEL AVENUE.

THANK YOU.

[SILENCE]

[01:35:02]

- I'LL NOW BRING US BACK FROM RECESS.

- RECORDING IN PROGRESS.

[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]

- THANK YOU, CHAIR MARTINEZ.

I WILL NOW CALL TO ORDER THE REGULAR MEETING OF THE COUNTY OF SANTA CRUZ, FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE FIVE.

COULD WE HAVE A ROLL CALL PLEASE? - DIRECTOR KOENIG.

- HERE.

- DE SERPA.

- PRESENT.

- HERNANDEZ.

- PRESENT.

- CUMMINGS. - HERE.

- MARTINEZ.

- PRESENT.

- BALBONI.

CLARK.

- IS EVERYBODY...

- ALL RIGHT. WE HAVE A QUORUM.

UM, ARE THERE ANY ADDITIONS OR DELETIONS TO THE CONSENT AND REGULAR AGENDAS? - NO.

- ALRIGHT. UM, WE'LL MOVE ON TO ITEM THREE, ORAL COMMUNICATIONS.

DOES ANYONE WISH TO ADDRESS THE ZONE FIVE FLOOD CONTROL AND WATER CONSERVATION DISTRICT ON ANYTHING TODAY THAT IS NOT ON OUR REGULAR AGENDA? ALL RIGHT. SEEING NONE.

UM, MOVE ON TO THE CONSENT AGENDA.

DOES ANYONE HAVE ANY COMMENTS OR QUESTIONS ABOUT THE CONSENT AGENDA? ALRIGHT, ANY PUBLIC COMMENT ON THE CONSENT AGENDA? SEEING NONE. I'LL RETURN IT TO THE BOARD FOR ACTION.

- I'LL MOVE THE REC-, I'LL MOVE CONSENT.

- SECOND.

- ALRIGHT, WE HAVE A MOTION BY DIRECTOR CUMMINGS, SECOND BY, UH, DIRECTOR HERNANDEZ FOR THE CONSENT AGENDA.

ALL, UM...

CAN WE HAVE A ROLL CALL VOTE PLEASE.

- DIRECTOR KOENIG.

- AYE.

- DE SERPA.

- AYE.

- HERNANDEZ. - AYE.

- CUMMINGS. - AYE.

- MARTINEZ. - AYE.

- AND KOENIG. AYE.

UM, ALRIGHT. THAT PASSES UNANIMOUSLY BY THOSE PRESENT.

UH, AND WITH THAT OUR BUSINESS IS FINISHED AND I WILL ADJOURN THE MEETING.

[SILENCE] BACK TO YOU CHAIR MARTINEZ.

THAT WAS ON THE CONSENT.

- EXCELLENT. OKAY. BACK TO ME.

THAT WAS RECORD TIME SUPERVISOR KOENIG.

UM, WE ARE NOW RETURNING TO ITEM NUMBER EIGHT.

[8. Hold public hearing to consider Application No. 241488, a proposal to subdivide an existing parcel to create 100 condominium parcels and to construct 100 residential units within 17 three-story buildings at 5940 Soquel Avenue, approve in concept an “Ordinance Approving Amendments to a Planned Unit Development (Ordinance 5027) as Allowed by Santa Cruz County Code Relating to Establishment of Development Standards for APN 029-021-47”, adopt resolution adopting the addendum to a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program in accordance with the California Environmental Quality Act, and take related actions]

A PROPOSAL TO SUBDIVIDE AN EXISTING PARCEL TO CREATE 100 CONDOMINIUM PARCELS AND TO CONSTRUCT 100 RESIDENTIAL UNITS WITHIN 17 THREE STORY BUILDINGS AT 5940 SOQUEL AVENUE.

APPROVE IN CONCEPT AN ORDINANCE APPROVING AMENDMENTS TO A PLANNED UNIT DEVELOPMENT ORDINANCE 5027 AS ALLOWED BY SANTA CRUZ COUNTY CODE RELATING TO ESTABLISHMENT OF DEVELOPMENT STANDARDS FOR APN 02902147.

AND ADOPT RESOLUTION ADOPTING THE ADDENDUM TO A MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING AND REPORTING PROGRAM IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND TAKE RELATED ACTIONS.

SO TODAY AS A PART OF PROCESS, WE ARE GOING TO BE HEARING FROM OUR STAFF.

THEN WE'LL HAVE 10 MINUTES TO HEAR FROM OUR PROJECT APPLICANT.

IF THERE'S ANY ORGANIZED OPPOSITION, WE'LL OFFER THEM 10 MINUTES AS WELL, AND THEN WE WILL BE RETURNING TO THE BOARD FOR QUESTIONS.

WE'LL GO TO PUBLIC COMMENT AND WE'LL RETURN TO THE BOARD FOR DELIBERATION AND A MOTION.

SO WITH THAT, I'M GOING TO OPEN THE PUBLIC HEARING AND TURN IT OVER TO MR. DE SALVA, DISALVO, SORRY.

OUR PLANNER. - NO PROBLEM.

GOOD MORNING, CHAIR MARTINEZ, MEMBERS OF THE BOARD, JONATHAN DISALVO, CDI, PLANNING DIVISION STAFF.

THE ITEM BEFORE YOU IS A PROPOSAL TO SUBDIVIDE AN EXISTING PARCEL, UH, TO CREATE 100 CONDOMINIUMS AND CONSTRUCT 100 UNITS WITHIN 17 THREE STORY BUILDINGS.

THE PROJECT REQUIRES APPROVAL BY THE BOARD OF SUPERVISORS OF AMENDMENTS TO PLAN UNIT DEVELOPMENT OR PUD ORDINANCE 5027, A LAND DIVISION, A SITE DEVELOPMENT PERMIT WITH DESIGN REVIEW AND TO ADOPT AN ADDENDUM TO A MITIGATED NEGATIVE DECLARATION PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT OR CEQA.

THE SUBJECT PROPERTY IS LOCATED TO THE SOUTH OF SOQUEL AVENUE, BETWEEN MADISON LANE AND SANTA CLARA AVENUE ON AN APPROXIMATELY FIVE ACRE SITE.

THE SURROUNDING NEIGHBORHOODS ARE COMMERCIAL, RESIDENTIAL, AND PUBLIC FACILITIES IN USE.

[01:40:03]

HIGHWAY 1 IS LOCATED TO THE NORTH OF SOQUEL AVENUE FROM THE SITE.

NEXT SLIDE, PLEASE.

THANK YOU.

THE SUBJECT PROPERTY IS LOCATED IN THE MULTI-FAMILY RESIDENTIAL 2000 SQUARE FEET PER DWELLING UNIT.

REGIONAL HOUSING NEED OUR COMBINING DISTRICT OR RM-2-R ZONE DISTRICT.

THE PROJECT WOULD RESULT IN A DEVELOPMENT WHICH IS CONSISTENT WITH THE PERMITTED USES OF THE ZONE DISTRICT.

THE COUNTY PROCESSED A PUD AND INITIAL STUDY TO IDENTIFY REQUIRED CONDITIONS OF APPROVAL FOR THE CONSTRUCTION OF A BY-RIGHT HOUSING DEVELOPMENT OF 100 RESIDENTIAL UNITS ON THE SUBJECT SITE.

ON DECEMBER 9TH, 2008, THE BOARD OF SUPERVISORS APPROVED A DEVELOPMENT PERMIT, WHICH INCLUDED A PUD TOGETHER WITH A GENERAL PLAN AMENDMENT FROM CS2RUH, REZONING OF THE PROPERTY FROM M1 TO RM-2-R, APPROVAL OF RIPARIAN EXCEPTION AND CERTIFIED THE MITIGATED NEGATIVE DECLARATION UNDER CEQA.

PUD ESSENTIALLY FUNCTIONS AS A SITE SPECIFIC ZONING ORDINANCE INCORPORATING ALL OF THE DEVELOPMENT STANDARDS FOR THE SITE DESIGN ON A PARCEL AND PROVIDES A BASIS FOR RECORDING THE ENVIRONMENTAL MITIGATION MEASURES THAT ACCOMPANIED THE REZONING TO THE R COMBINING DISTRICT.

THE PUD MODIFIED THE SITE DEVELOPMENT STANDARDS IN EFFECT IN 2008 TO REDUCE THE AMOUNT OF REQUIRED PARKING AND ALLOW TALLER STRUCTURES AMONG OTHER MODIFICATIONS IN ORDER TO ACCOMMODATE THE DEVELOPMENT OF HOUSING AT A DENSITY OF 20 UNITS PER ACRE ON THE SUBJECT SITE RESULTING IN A PUD FOR 100 DWELLING UNITS.

IN ORDER TO ALLOW THE DEVELOPMENT OF THE SITE TO BE BY RIGHT MEANING THAT THE DENSITY CANNOT BE REDUCED, AND NO ADDITIONAL CEQA REVIEW CAN BE REQUIRED FOR THE USE.

CEQA ANALYSIS WAS DONE AT THE TIME OF THE REZONING AND PUD ADOPTION.

THE PROJECT SITE IS LOCATED WITHIN THE R-UH OR URBAN HIGH DENSITY, UH, RESIDENTIAL GENERAL PLAN DESIGNATION.

SURROUNDING PROPERTIES ARE LOCATED WITHIN THE R-UM OR URBAN MEDIUM DENSITY RESIDENTIAL GENERAL PLAN DESIGNATION CS OR SERVICE COMMERCIAL LIGHT INDUSTRIAL DESIGNATION, AND THE P OR PUBLIC FACILITIES DESIGNATION.

OH, WE JUMPED AHEAD ONE SLIDE.

UM, UH, YEAH.

THE FOLLOWING SLIDES ARE A FEW PHOTOS OF THE PROJECT SITE.

THIS PHOTO LOOKING SOUTHWEST SHOWS THE PROJECT SITE TO THE SOUTH OF SOQUEL AVENUE.

THE EXISTING SITE HAS BEEN USED FOR VARIOUS STORAGE AND SALVAGE YARD, YARD PURPOSES, AND CONTRACTORS' OFFICES.

MANY OF THE STRUCTURES HAVE NOW BEEN REMOVED FROM THE SITE.

THIS IS A VIEW OF THE PROJECT FRONTAGE LOOKING SOUTHEAST.

ALONG SOQUEL AVENUE, THE PROPOSED FRONTAGE SIDEWALK AND ROADWAY IMPROVEMENTS HAVE BEEN REVIEWED BY THE CDI PUBLIC WORKS DIVISION AND AS CONDITIONED WILL MEET COUNTY REQUIREMENTS PER THE PLAN LINE FOR SOQUEL AVENUE.

ADDITIONALLY, CONFORMANCE WITH THE PUD A SIDEWALK WOULD BE CONSTRUCTED OFFSITE ACROSS THE ADJACENT PARCEL TO THE WEST OF THE PROJECT SITE.

CURRENTLY CONTAINING A LANDSCAPING SUPPLY BUSINESS OWING OUTDOOR SUPPLY AND WOULD CONNECT TO THE EXISTING SIDEWALK FRONTING THE SHERIFF'S PROPERTY AT 5,300 SOQUEL AVENUE.

CONSTRUCTION OF THIS OFFSITE SIDEWALK WOULD ALLOW FOR CONTINUOUS PEDESTRIAN CONNECTION ALONG SOQUEL AVENUE FROM THE PROJECT SITE TO THE SIDEWALK NETWORK TO THE WEST OF THE SITE, INCLUDING THE NEW BICYCLE AND PEDESTRIAN HIGHWAY ONE OVER CROSSING AT SANTA CLARA AVENUE.

EMERGENCY ONLY ACCESS OR AN EVA WOULD BE PROVIDED AT THE WEST SIDE OF THE PROJECT SITE BLOCKED BY A SECURITY GATE THAT WOULD EXTEND EMERGENCY VEHICLE ACCESS VIA ESTABLISHMENT OF AN EASEMENT ACROSS PARCEL NUMBER 02902159, WHICH IS A COUNTY OWNED PROPERTY.

AS CONDITIONED THE EASEMENT MUST BE EXECUTED PRIOR TO FINAL, UH, PRIOR TO FINAL MAP APPROVAL.

WITH THIS EASEMENT, THE PROJECT WOULD GAIN SECONDARY ACCESS FOR EMERGENCY VEHICLES FROM THE PROJECT SITE TO SANTA CLARA AVENUE.

THE BUILDING MASSING WOULD FOLLOW A LINEAR ARRANGEMENT, WHICH IS TYPICAL FOR TOWN HOME DEVELOPMENTS AND WILL ESSENTIALLY BE MIRRORED ON EITHER SIDE OF INTERIOR ROADWAYS CONTAINING WIDTH OF 24 FEET WITH SEVERAL SEGMENTS SUCH AS ALLEYS IN THE EVA CONTAINING A MINIMUM WIDTH OF 20 FEET

[01:45:01]

THE PED CALLS FOR VILLAGE CLUSTERING AND SITE DESIGN, THE TOWN HOME STYLE BUILDINGS AND MULTIMODAL CONNECTIVITY THROUGHOUT THE PROJECT SITE AND SHARED COMMON AREAS ACHIEVE THIS CONCEPT WELL.

GIVEN THE SPACE CONSTRAINTS OF THE SIZE OF THE SITE TO ACCOMMODATE THE 100 BY-RIGHT RESIDENTIAL UNITS.

THE PROPOSED SEWER LAYOUT INCLUDES A NEW SEWER COLLECTOR ON THE ADJACENT COUNTY OWNED PARCEL VIA RECORDATION OF AN EASEMENT.

A WELL SERVE LETTER FROM THE COUNTY SANITATION DISTRICT HAS BEEN ISSUED FOR THE PROJECT.

AS FAR AS WATER DESIGN, THE PROPOSAL INCLUDES ONSITE DRAINAGE FACILITIES THAT WILL CAPTURE AND TREAT ALL ONSITE STORM WATER RUNOFF AND A BIOFILTRATION FACILITY OUTLINED IN GREEN AT THE CENTER OF THE DEVELOPMENT.

AFTER TREATMENT RUNOFF WILL BE ROUTED TO A NEW STORM DRAIN SYSTEM LOCATED WITHIN THE SOQUEL AVENUE RIGHT OF WAY.

THE PROJECT WILL CONSTRUCT A NEW STORM DRAIN SYSTEM IN SOQUEL AVENUE THAT WILL ROUTE RUN OFF FROM THE SITE AND FROM UPSTREAM OF THE SITE DOWN SOQUEL AVENUE, APPROXIMATELY 1,600 FEET EASTWARD TO RODEO CREEK GULCH.

THE NEW DRAINAGE SYSTEM WILL BE SIZED AND CONFORMANCE WITH COUNTY DESIGN CRITERIA REQUIREMENTS TO ACCOMMODATE EXISTING AND FUTURE BUILD OUT OF THE WATERSHED CONSIDERING CURRENT ZONING.

THIS DRAINAGE SYSTEM WILL ADDRESS EXISTING DRAINAGE CONCERNS IN THE PROJECT VICINITY.

THE PROJECT WILL CONNECT TO WATER SUPPLY FROM THE EXISTING NETWORK ON SOQUEL AVENUE AND HAS ALSO RECEIVED A WILL SERVE LETTER FROM THE CITY OF SANTA CRUZ WATER DEPARTMENT.

LANDSCAPING IS PROPOSED THROUGHOUT THE DEVELOPMENT, WRAPPING PRIVATE YARDS OF THE UNITS, LINING INTERIOR ROADWAYS AND WRAPPING THE PERIPHERY OF THE PROJECT SITE AND FRONTAGE.

AND APPROXIMATELY 0.041 ACRE OF ARTIFICIAL WETLANDS OR OTHER WATERS WILL BE IMPACTED BY THE PROPOSED PROJECT.

THE PERMANENT LOSS OF WATERS OF THE US OR STATE WILL BE AVOIDED THROUGH CREATION OF A 0.1 ACRE SEASONAL WETLAND AT THE NORTHWEST CORNER OF THE PROJECT SITE.

AS CONDITIONED THE WETLAND WILL BE SEATED WITH NATIVE WETLAND VEGETATION AND MONITORED VIA A WETLAND MONITORING, UH, PLAN.

BETWEEN BUILDINGS THREE AND FOUR AT THE NORTHWESTERN PORTION OF THE SITE, A LARGE COMMON USABLE OPEN SPACE INCLUDING A PICNIC AREA AND A CHILDREN'S PLAY AREA WITH CLIMBING LOGS IS PROPOSED.

PER THE REQUEST TO THE PLANNING COMMISSION AT THE PROJECTS HEARING ON DECEMBER 10TH, 2025, THE APPLICANT ADDED ADDITIONAL TREES AND TALLER FENCING ALONG THE REAR PROPERTY LINE AT THE SOUTH SIDE OF THE PROJECT SITE AS CIRCLED IN RED ON THIS SLIDE.

AS MENTIONED WITH THE PRIOR SLIDE, THE PLAN COMMISSION REQUESTED ADDITIONAL SCREENING ALONG THE SOUTHERN PROPERTY LINE.

IN ADDITION TO ADDING TREES, THE APPLICANT ALSO REVISED THE FENCE DESIGN TO AN OVERALL HEIGHT OF 10 FEET FROM THE BASE OF THE RETAINING WALL TO THE TOP OF THE FENCE LATTICE IN CONFORMANCE WITH THE REQUEST OF THE PLANNING COMMISSION.

UM, IT'S INDICATED IN THE FENCE DETAIL ON THE LEFT AND THE BROWN DASHED LINE ON THE SITE PLAN ON THE RIGHT.

THE PLANNING COMMISSION ALSO REQUESTED THAT THE PROJECT ADD ADDITIONAL GUEST PARKING WERE FEASIBLE WITHOUT LOWERING THE PROPOSED DENSITY.

THE APPLICANT HAS REDESIGNED THE GUEST PARKING PLAN INCREASING THE NUMBER OF GUEST PARKING SPACES FROM 15 TO 20 SPACES.

THE PROPOSED THREE STORY HOMES WOULD CONTAIN THREE BEDROOMS AND INTERNAL GARAGES FOR TWO CARS.

THE BUILDINGS CONTAIN SIMILAR FLOOR PLANS WITH SOME BUILDINGS PROVIDING REVERSE FLOOR PLANS AND VARIATIONS IN THE BALCONY AND PATIO SIZES AND ORIENTATIONS.

THE EXISTING PUD ALLOWS FOR BUILDINGS TO EXTEND TO 35 FEET IN HEIGHT FOR THREE STORY STRUCTURES AND THE PROPOSED BUILDINGS MEASURE ABOUT 34 FEET FOUR INCHES IN HEIGHT.

THE EXTERIORS OF THE BUILDINGS WOULD CONSIST OF A MIX OF PLASTER BOARD AND BATTEN SIDING AND BALCONIES WITH METAL RAILINGS.

A MIX OF THREE-TON COLUMNING WOULD BE USED ON ALL FACADES OF THE BUILDINGS.

UNDER THE EXISTING PUD.

THE PROJECT SITE IS CURRENTLY TITLED FOR A TOTAL OF 100 UNITS AND THE CURRENT APPLICATION HAS BEEN MADE FOR THE 100 UNITS ALLOWED.

AS THE ORIGINAL PUD WAS NOT REVIEWED BY ANY DESIGN TEAM TO ASSESS THE FEASIBILITY OF DESIGNING AND FITTING 100 UNITS ON THE SITE, THE APPLICANT IS REQUESTING AMENDMENTS TO THE PUD TO PROVIDE A PROJECT THAT MEETS REAL WORLD CONDITIONS, CURRENT CODES, AND THE PRESENT DAY COST ENVIRONMENT FOR MULTI-FAMILY HOUSING.

THE PUD AMENDMENT AS PROPOSED BY THE APPLICANT ARE IDENTIFIED IN THE STAFF REPORT.

ENVIRONMENTAL REVIEW WAS CONDUCTED IN INITIAL STUDY, WAS PREPARED FOR THE ADOPTION OF THE EXISTING PUD

[01:50:01]

THE MITIGATION MEASURES WERE ALSO INTEGRATED INTO THE PUD.

AN ADDENDUM TO THE INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION OR ISMND WAS PREPARED FOR THE UH, PROPOSED PROJECT.

THE ADDENDUM IS NECESSARY TO ADDRESS MODIFICATIONS TO THE APPROVED PUD AND MINOR TECHNICAL CHANGES IN THE BIOLOGICAL RESOURCES ANALYSIS IN THE 2008 ISMND.

THE ADDENDUM IS APPROPRIATE BECAUSE THERE IS NO SUBSTANTIAL CHANGES TO THE PROJECT OR CIRCUMSTANCES UNDER WHICH THE PROJECT IS TAKEN AND NO NEW INFORMATION OF SUBSTANTIAL IMPORTANCE THAT WOULD RESULT IN NEW OR MORE SEVERE SIGNIFICANT IMPACTS.

THE ADDENDUM AND THE MITIGATION AND MONITORING REPORTING PROGRAM ARE ATTACHED TO THE BOARD'S CEQA RESOLUTION.

AT ITS DECEMBER 10TH HEARING.

THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THE PROJECT ADDING THAT ADDITIONAL SCREENING BE ADDED, TO THE SOUTHERN PROPERTY LINE, FURTHER PARKING BE ADDED TO THE PROJECT AS FEASIBLE AND TO INCREASE THE AFFORDABLE HOUSING REQUIREMENT FROM 15 TO 20%.

AS DETAILED IN THE PLANNING COMMISSION STAFF REPORT, STAFF'S RECOMMENDATION TO THE PLANNING COMMISSION WAS TO GRANT THE REQUESTED PUD AMENDMENT TO 15% AFFORDABLE UNITS WHICH IS CONSISTENT WITH THE COUNTY'S CURRENT CODE AND AS THE APPLICANT HAD ORIGINALLY REQUESTED.

STAFF HAS INCLUDED TWO DRAFT ORDINANCES FOR THIS PROJECT ATTACHED TO THE STAFF REPORT.

ONE ORDINANCE PROVIDED AN ATTACHMENT C REFLECTS THE 20% AFFORDABLE HOUSING REQUIREMENT AS RECOMMENDED BY THE PLANNING COMMISSION AND AN ALTERNATIVE ORDINANCE REFLECTING A 15% AFFORDABILITY REQUIREMENT HAS BEEN PROVIDED AS ATTACHMENT E, WHICH IS CONSISTENT WITH CURRENT CODE AS ORIGINALLY RECOMMENDED BY STAFF.

THE BOARD CAN ELECT TO EITHER APPROVE THE 20% REQUIREMENT AS RECOMMENDED BY THE PLANNING COMMISSION OR THE 15% REQUIREMENT AS RECOMMENDED BY STAFF AND THE APPLICANT.

IN CONCLUSION, AS SUMMARIZED, THE RECOMMENDED ACTIONS FOR THE BOARD ARE AS FOLLOWS, CONDUCT THE PUBLIC HEARING, ADOPT A RESOLUTION, ADOPTING THE ADDENDUM TO AN MND AND MMRP APPROVE APPLICATION 241488 WITH FINDINGS AND CONDITIONS.

APPROVING CONCEPT AND ORDINANCE, UH, APPROVING AMENDMENTS TO PUD ORDINANCE 5027.

INCLUDING A RECOMMENDATION OF A 15% AFFORDABILITY PROVISION.

STAFF IS AVAILABLE FOR QUESTIONS.

UH, THE APPLICANT IS ALSO PRESENT AND CAN PROVIDE A PRESENTATION AS WELL.

THANK YOU.

- THANK YOU.

WE WILL NOW TURN IT OVER TO THE PROJECT APPLICANT.

YOU'LL HAVE 10 MINUTES TO PRESENT YOUR APPLICATION.

YOU CAN USE IT HOWEVER YOU'D LIKE.

UM, IF YOU WOULD LIKE AN OPPORTUNITY TO REBUTTAL.

UM, ACTUALLY, LET ME JUST ASK, IS THERE AN ORGANIZED OPPOSITION GROUP IN THE ROOM OR JUST PEOPLE WHO ARE HERE TO SPEAK ON PUBLIC COMMENT? I DON'T BELIEVE WE DO.

SO THIS WILL BE YOUR 10 MINUTES.

YOU WON'T BE REBUTTING ANYTHING.

- THANK YOU.

MY NAME'S JEFF MCMULLEN. I'M WITH THE KB HOME, SO THANK YOU CHAIRMAN AND UH, BOARD OF SUPERVISORS.

UM, WE'VE BEEN WORKING ON THIS PROJECT FOR A LITTLE OVER TWO YEARS.

OUR APPLICATION'S BEEN IN THE, UH, WITH THE COUNTY FOR A LITTLE OVER A YEAR.

WE'VE HAD SOME GOOD, UH, UH, DISCUSSIONS AND GONE THROUGH ALL THE DEPARTMENTS WITH THE COUNTY, UM, SO I'D LIKE TO THANK THEM FOR THAT.

THAT'S BEEN A HARD WORK AND REALLY APPRECIATE GETTING US TO THIS POINT.

I HAVE OUR ARCHITECT TODAY WITH US AND OUR ENGINEER.

SHOULD THERE BE ANY QUESTIONS? UH, I'M JUST GONNA GIVE YOU A QUICK, QUICK, UH, BRIEFING ON SOME OF THE KEY ISSUES HERE.

OUR PROJECT IS EXACTLY A HUNDRED UNITS CONSISTENT WITH THE, UH, ORIGINAL PUD, NOT ONE UNIT MORE, NOT ONE UNIT LESS IT'S EXACTLY A HUNDRED.

WE'VE DESIGNED IT TO BE TOWN HOMES, WHICH JONATHAN SHOWED YOU.

UM, THOSE ARE THOSE PLOT AT EXACTLY 20 TO THE ACRE.

THIS IS A FIVE ACRE SITE, SO THAT DENSITY FITS THIS SITE EXACTLY.

THESE ARE FOR SALE TOWN HOMES.

THESE WILL BE SOLD TO THE PUBLIC.

UM, THEY ARE, UH, TWO, THREE STORY, THREE AND FOUR BEDROOM, TWO CAR GARAGE.

AND UM, THEY ARE, I THINK, UH, THE PERFECT PRODUCT FOR THIS BECAUSE THE AVERAGE PRICE OF A HOME IN SANTA CRUZ IS ABOUT $1.3 MILLION.

THESE ARE TARGETED TO BE BELOW THAT PRICE POINT.

SO IT'S A GOOD ENTRY LEVEL HOME, NEW HOME FOR PEOPLE TO BE ABLE TO CREATE OWNER HOME OWNERSHIP IN THE COUNTY.

THESE, UH, THIS PROJECT WILL PROVIDE 15 AFFORDABLE UNITS.

I KNOW THERE'VE BEEN SOME DISCUSSION AT THE PLANNING COMMISSION ABOUT 20, BUT WE DO NOT SUPPORT THAT.

WE SUPPORT 15.

[01:55:02]

UM, THE DEVELOPMENT WILL BRING MUCH NEEDED INFRASTRUCTURE TO THE AREA.

WE'RE CONSTRUCTING.

UM, A STORM DRAIN DOWN, UH, SOQUEL AVENUE TO RODEO CREEK.

IT'S HISTORICALLY BEEN A PROBLEM IN THE COUNTY FLOODING A LOT OF ISSUES.

THE STORM DRAIN REACHES BEYOND THIS PROPERTY.

IT'S NOT JUST FOR THIS PROPERTY.

IT EXTENDS TO THE COMMUNITY AND THE SURROUNDING COMMUNITY AND I THINK IT HELPS SOLVE AN ISSUE THAT'S BEEN THERE FOR YEARS.

ALSO, WE'RE BUILDING THE STREETS AND, UH, THE FRONTAGE ROAD, THE SEWER LINES, A LOT OF INFRASTRUCTURE.

FINALLY, WE'RE PLANTING OVER 190 TREES, SO I THINK I'LL GIVE, UH, OUR ARCHITECT A CHANCE TO SHOW YOU THE SITE PLAN, BUT I JUST WANTED TO THANK YOU FOR HEARING US AND TO LOOK FORWARD TO YOUR APPROVAL.

THANK YOU.

- GOOD MORNING CHAIR, MEMBERS.

UM, I'LL GO THROUGH THIS BRIEFLY.

I KNOW JONATHAN GAVE A REALLY IN DEPTH, UM, OVERVIEW OF THE PROJECT, BUT I JUST WANNA HIGHLIGHT A FEW MORE THINGS FOR YOU.

AM I ABLE TO ADVANCE THE SLIDES OR? UM, SO AGAIN, HERE'S A PICTURE OF THE EXISTING SITE, UM, THAT WE FEEL IS LOOKING FOR DEVELOPMENT TO HELP THE HOUSING, UM, SHORTAGE IN, IN THE COUNTY.

UH, ARTISTS RENDERING EVERYTHING MIGHT NOT BE PERFECT IN THIS BUT THIS GIVES YOU AN IDEA OF THE ARCHITECTURE AND WHAT THE PROJECT WILL LOOK LIKE DOWN THE ROAD.

UM, HERE'S OUR SITE PLAN.

AS JONATHAN MENTIONED, WE HAVE ADDRESSED SOME ADDITIONAL LANDSCAPING, UM, AT THE SOUTH SIDE OF THE PROJECT.

UM, AND THEN ON THE LEFT SIDE YOU'LL SEE THE SCREEN, UM, DETAIL WHERE WE HAVE OUR THREE FOOT RETAINING WALL, SIX FOOT, GOOD NEIGHBOR, TYPICAL WOOD FENCE AND LATTICE OF A FOOT TALL ON THE SIDE THERE.

UM, AND THEN THAT WAS BASED ON DISCUSSION AT THE PLANNING COMMISSION MEETING AND INPUT FROM ADJACENT NEIGHBORS.

HERE'S OUR OVERALL SITE PLAN SHOWING THE BMR LOCATIONS.

UM, SO AGAIN THESE ARE SAME UNITS THAT OCCUR THROUGH THE PROJECT UM, YOU WON'T BE ABLE TO TELL THAT THEY WERE THE AFFORDABLE UNITS, UM, ONCE THEY ARE FULLY DEVELOPED AND, AND FINISHED.

I'LL JUST SKIP THROUGH THIS ONE.

WE KIND OF WENT OVER THE UTILITY CONNECTIONS ALREADY.

UM, THIS ONE DOES HIGHLIGHT IN GREEN, UM, CIRCLED IN THE RED THAT THE ADDITIONAL PARKING SPACES THAT WE ADDED BASED ON DISCUSSION DURING THE PLANNING COMMISSION MEETING.

AGAIN, WE WEREN'T ABLE TO LOOK AT ADDING FURTHER BASED ON THE DENSITY OF THE SITE.

UM, JUST A QUICK NOTE ON THE STORM DRAIN THAT JEFF JUST MENTIONED.

UM, YOU CAN SEE A PICTURE THERE ON THE LEFT THAT WE TOOK DURING ONE OF THE RECENT STORMS, UM, SO THAT THE, YOU GET A PICTURE OF WHAT WE'RE TRYING TO HELP MITIGATE HERE.

AND THEN WON'T TOUCH TOO MUCH ON THE, ON THE FLOOR PLANS THEMSELVES.

UM, BUT WE DO OFFER THREE DIFFERENT, UM, FLOOR PLAN TYPES RANGING FROM THREE TO FOUR BEDROOMS, UM, LIVING SPACES ON THE MAIN FLOOR, TYPICALLY A DEN OR A BEDROOM ON THE FIRST FLOOR, AND THEN BEDROOMS ON THE THIRD FLOOR.

HERE'S A, A TYPICAL BUILDING, A SIX UNIT BUILDING.

SO THE UNITS ARE REPEATED WITHIN THE DIFFERENT BUILDINGS ON THE SITE.

AND THEN OUR ARCHITECTURE, WE FEEL, UM, WITH THE MIX OF SIDING HORIZONTAL, UM, VERTICAL AND STUCCO LENDS ITSELF TO A MORE INDUSTRIAL FEEL, UM, FOR THAT AREA.

SO JUST HIGHLIGHTING A FEW THINGS.

UM, AS MENTIONED, 15 DEED RESTRICTED FOR SALE TOWNHOUSES AT A MODERATE INCOME.

WE, UM, ARE PLANTING 191 NEW TREES.

WE ARE WHAT THIS PROJECT, HELPING THE COUNTY ACHIEVE YOUR ARENA GOALS, PROVIDING THE STORM DRAIN INFRASTRUCTURE AND PROVIDING FOR SALE HOUSING FOR THE AREA.

AND THANK YOU. WE'RE HERE FOR ANY QUESTIONS YOU MAY HAVE.

[SILENCE]

[02:00:05]

UM, I WILL NOW, UM, OPEN TO PUBLIC COMMENT.

SO IF YOU ARE HERE TO SPEAK ON THIS ITEM, UM, WE'RE GONNA ASK THAT YOU LINE UP HERE.

WE WILL BE GIVING TWO MINUTES FOR PUBLIC COMMENT PER PERSON.

IF YOU ALREADY SPOKE ON THIS ITEM DURING THE PREVIOUS PUBLIC COMMENT PERIOD, YOU'RE NOT ABLE TO ADDRESS US AGAIN.

UM, AND WITH THAT I OPEN THE FLOOR.

- GOOD MORNING.

MY NAME IS LINDA LAWRENCE AND I LIVE IN THE BEACHCOMBER MOBILE HOME PARK AND MY UNIT BACKS UP TO THIS PROJECT.

UM, THE UNITS, UM, ARE GONNA BE 12 FEET FROM MY BEDROOM WINDOW WITH THE HEIGHT OF THE FENCE AND THE AMOUNT OF TREES THAT THEY'RE PLANTING THERE I WILL HAVE AND THE SIZE.

- CAN YOU MOVE THE MIC CLOSER? - AND THE HEIGHT OF THE BUILDING, I WILL HAVE PROBABLY ZERO LIGHT IN THE BACK OF MY HOME.

UM, TRAFFIC IN THIS AREA IS ALREADY, UM, IMPACTED, ESPECIALLY AT COMMUTE TIME WITH, IT'S ONLY GONNA MAKE THINGS WORSE BECAUSE THEY ONLY PROVIDE TWO PARKING SPACES PER UNIT.

AT THE PRICE OF THE UNITS, THIS IS NOT AFFORDABLE HOUSING.

WE DO, AS YOU HEARD EARLIER, WE NEED MORE AFFORDABLE HOUSING AND WE NEED MORE AFFORDABLE RENTALS.

I DID CHECK AND, UH, THE UNITS DOWNTOWN ARE STARTING AT $3,100 FOR A, UM, UH, LESS THAN TWO BEDROOM APARTMENT.

AND FOR THE AMOUNT OF, UM, CONTAMINATION THAT'S PROBABLY ON THAT PROPERTY IS GREAT.

I'VE LIVED IN THIS AREA MY WHOLE LIFE.

I'M IN THAT AREA AND LIVED IN THAT AREA AND I KNOW OF ALL THE STORAGE THAT'S BEEN THERE.

THERE'S BEEN, UH, TOW COMPANIES, UH, PRIVATE PEOPLE, CARS HAVE OBVIOUSLY LEAKED AND LEAKED AND LEAKED INTO THAT AREA.

SO I AM NOT IN FAVOR OF THIS PROJECT AT ALL.

I THINK IF THIS PROJECT HAD PASSED YOU, THEY HAVE NOT TAKEN INTO CONSIDERATION THE RESIDENTS OF THIS COUNTY.

[SILENCE] - NOW I'M GOOD.

GOOD MORNING. UH, MY NAME IS DANIEL ALVAREZ.

I WORK FOR THE CARPENTERS UNION LOCAL 646 HERE IN MARINA.

REPRESENTING MEMBERS ON SANTA CRUZ COUNTY, MONTEREY AND SAN BENITO.

AS THIS PROJECT CURRENTLY EXTENDS, WE DO NOT SUPPORT IT BECAUSE, UM, THERE HAS BEEN NO COMMITMENT TO USING A RESPONSIBLE GENERAL CONTRACTOR, A RESPONSIBLE CONTRACTOR THAT SUPPORT APPRENTICESHIP PROGRAMS HEALTHCARE, AND A GOOD RETIREMENT PLAN.

THIS IS STANDARDS MATTERS BECAUSE WE WANT TO, UM, RAISE THE STANDARDS, CREATE OPPORTUNITIES FOR THE MEMBERS, AND ALSO, UM, MAKE THE WORKFORCE LOCALLY EVEN BETTER.

WE KNOW THAT HOW EXPENSIVE SANTA CRUZ IS AND A LOT OF THE PEOPLE IS CROSSING THE HILL JUST TO SUPPORT THEIR FAMILIES.

THANK YOU FOR YOUR TIME.

[SILENCE] - MY NAME'S SAM NYE.

I OWN THE PROPERTY THAT'S, UH, JUST SOUTH OF THIS PROJECT.

I HAD NO INTENTION OF SPEAKING THIS MORNING.

THE GUY THAT WAS GONNA DO IT HAD TO GO TO WORK, SO I'M REALLY NOT VERY WELL PREPARED FOR THIS.

UM, I DO HAVE ONE QUESTION.

IT'S MY UNDERSTANDING THAT EVENTUALLY THE DRIVE-IN THEATER IS GONNA BE DEVELOPED.

RIGHT NOW, THE DRIVE-IN THEATER IS RIGHT ACROSS THE FREEWAY FROM OUR PROPERTY, AND THERE'S A PIPE THAT GOES UNDER THE FREEWAY AND BRINGS ALL THAT RUNOFF OVER AROUND MY PROPERTY.

MY MAIN CONCERN IS, IS THE RUNOFF, THE WAY IT'S BEING HANDLED, IS IT ENOUGH TO KEEP US FROM FLOODING? I DON'T WANT TO FLOOD.

NOW, I UNDERSTAND THEY'RE GONNA GO DOWN SOQUEL AVENUE TO THE NEXT RAVINE AND DUMP IT ALL DOWN THERE.

AND THE QUESTION IS, HOW DO WE KNOW, WHEN THE DRIVE-IN THEATER DEVELOPS INTO WHO KNOWS HOW MANY CONDOMINIUMS OR WHATEVER, HOW IS IT GONNA BE ENOUGH TO HANDLE THAT?

[02:05:01]

THAT'S BASICALLY ALL I HAVE, UH, ALL THAT I CAN THINK OF AT THIS POINT.

SO THANK YOU FOR YOUR TIME.

- THANK YOU.

- HELLO.

I'M SANDRA CARROLL.

I LIVE IN THE BEACHCOMBER MOBILE HOME PARK FOR 46 YEARS.

I DO HAVE AN ISSUE WITH THE EMERGENCY EXIT WHERE MR. DISALVO MENTIONED, HE SAID IT'S COUNTY-OWNED PROPERTY THAT'S THE SHERIFF'S DEPARTMENT.

I FIND THAT, UM, REAL ESTATE DEVELOPERS USING THE SHERIFF'S DEPARTMENT AS THEIR EMERGENCY EXIT IS NOT VERY COMMENDABLE.

I THINK THAT'S QUESTIONABLE.

I THINK THIS, UH, PROJECT IS VERY EXPENSIVE HOUSING.

IT IS NOT, UH, WHAT WE'RE USED TO IN THAT NEIGHBORHOOD, AND THEY HAVE, UH, THEY'RE BRINGING IN A LOT OF TREES, THEY'RE ALSO DESTROYING A 70-YEAR-OLD REDWOOD AND EUCALYPTUS TO PUT IN THEIR 17 UNITS.

I THINK THIS PROJECT IS TOO BIG FOR THAT SPOT, AND THEY HAVE NOT TAKEN INTO CONSIDERATION THE PARKING OR THE VEHICLES.

EVERY PROJECT THAT HAS COME IN TO OUR AREA HAS IMMEDIATELY TURNED THAT STREET, THAT USED TO BE OUR HOMES' ACCESS, INTO A PARKING LOT.

WHEN I MOVED INTO MADISON LANE, IT WASN'T A PARKING LOT UNTIL THEY DEVELOPED THE LAND WITH HOUSES AND WITH DUPLEXES.

SOQUEL AVENUE IS A PARKING LOT SOMETIMES NOW ONLY BECAUSE THEY CAN'T GET ON THE FREEWAY.

I THINK MORE CONSIDERATION SHOULD BE MADE FOR ACCESSING VEHICLES, VEHICLES BEING ABLE TO GET TO THEIR HOMES AND ALSO PARK AT THEIR OWN HOMES, NOT IN THE NEIGHBORHOOD.

THANK YOU FOR YOUR TIME.

- HI, I WOULD LIKE TO ENCOURAGE YOU TO PASS THIS.

WE NEED MORE HOUSING.

IF YOU DON'T PUT IT WHERE THIS IS AS PROPOSED, THEN WHERE ARE YOU GONNA PUT IT? THIS IS AN EMPTY LOT, SO IT'S A GOOD PLACE TO DEVELOP SOMETHING.

UM, WE DO NEED MORE AFFORDABLE HOUSING, SO IF YOU COULD PASS IT AT THE HIGHER LEVEL, THAT WOULD BE AWESOME.

I UNDERSTAND WHY THE BUILDER DOESN'T WANT TO DO THAT.

AND UM, I DON'T KNOW WHAT STUDIES HAVE BEEN DONE TO ENSURE THAT THE, UM, DRAINAGE AND SO FORTH THAT THEY WERE TALKING ABOUT WILL ACTUALLY BE ENOUGH, NOT JUST FOR THAT DEVELOPMENT, BUT THE SURROUNDING AREA.

UM, I COULDN'T, I COULDN'T FIND IT WHERE THAT INFORMATION WAS.

BUT THANK YOU.

- HI, I'M CARLA NYE, UH, MARRIED TO THE MAN THAT OWNS THE ADJACENT PROPERTY, AND WE'VE FOUGHT THAT SITUATION OUR WHOLE LIFE THERE FLOODING.

UM, THAT IS ONE OF THE ISSUES.

DO YOU WANNA GIVE ME THE PICTURES? WE WANT THESE PICTURES OF THE FLOODING, THERE'S PICTURES FOR ALL OF YOU.

- YOU COULD HAND IT TO HER.

- FOUGHT IT FOR 50 YEARS.

BUT THAT'S ONE OF MY SITUATIONS, OR QUESTIONS.

MY OTHER ONE IS, DURING ALL THE PRESENTATIONS UM, INCLUDING THE HOUSING DEPARTMENT EARLIER, IT WAS 25% THEY WERE TALKING ABOUT AFFORDABLE HOUSING.

THE DEVELOPER HERE MENTIONED A 20%, AND YET THEY'VE SETTLED FOR 15%.

I DON'T UNDERSTAND THAT, SO I'M HOPING THAT YOU'LL VOTE FOR THE BIGGER ONE, AND MAYBE EVEN THE RECOMMENDED ONE, BECAUSE THERE'S SO MUCH NEW BUILDING GOING ON IN THE COUNTY.

DOWNTOWN FEELS VERY, UM, CLAUSTROPHOBIC TO ME TO DRIVE THROUGH ALL THOSE NEW HIGH-RISE BUILDINGS, AND THIS ONE'S GONNA BE IN MID-COUNTY, AND THERE ARE MANY OTHERS BEING PLANNED.

SO, IN ALL OF THOSE, I URGE YOU TO ADAPT THE HIGHER PERCENTAGE OF AFFORDABLE, NOT EVEN LOW INCOME, BUT WHATEVER.

THANK YOU.

- THANK YOU. BECKY STEINBRUNNER.

I'VE BEEN WATCHING THIS PIECE OF PROPERTY FOR A LONG TIME.

I USED TO WORK AT FAR WEST NURSERY FOR A FEW YEARS, THAT'S THE PETRAKIS PROPERTY THAT'S ADJACENT, AND REGULARLY,

[02:10:05]

SO AS MR. NYE POINTED OUT, THERE IS, IT'S NOT JUST THE...

THE DITCH ALONG SOQUEL AVENUE FRONTAGE ROAD THAT HAS TO BE DEALT WITH, THERE'S A PIPE THAT COMES UNDER THE FREEWAY FROM THE SKYVIEW DRIVE-IN AREA THAT DELIVERS AN ENORMOUS AMOUNT OF STORM WATER THERE, AND THE NURSERY FLOODS REGULARLY.

SO, ADDING THIS PROJECT TO ALL OF THAT, I DON'T THINK THAT THE BIORETENTION AREA SINGLED OUT TO HANDLE IS GOING TO BE ENOUGH.

AND I DON'T THINK THERE'S BEEN SUFFICIENT UH, ANALYSIS OF THE STORMWATER DRAINAGE FOR THIS PROJECT.

I DON'T UNDERSTAND HOW YOUR BOARD CAN ACCEPT AN 18-YEAR-OLD ENVIRONMENTAL DOCUMENT AND THINK THAT IT'S OKAY BECAUSE THINGS HAVE CHANGED, INCLUDING OUR STORM PATTERN.

SO, I ALSO NOTE THAT THE PLANNED UNIT DEVELOPMENT THAT WAS APPROVED FOR THIS INCLUDED 40% AFFORDABLE HOUSING.

HOW CAN WE POSSIBLY ACCEPT A LOWER AMOUNT, ESPECIALLY GIVEN WHAT YOU'VE HEARD THIS MORNING? SO I THINK THERE NEEDS TO BE A COMPLETE NEW ENVIRONMENTAL ANALYSIS THAT IS CURRENT, AND, UH, THAT THIS GOES BACK TO THE DRAWING BOARD.

THIS WAS AN AFFORDABLE HOUSING OVERLAY AREA.

I AM AWARE OF THAT FROM HOUSING ADVISORY COMMISSION MEETINGS I HAVE ATTENDED.

SO IT WAS INTENDED TO HAVE 102 UNITS THAT WERE ALL AFFORDABLE.

SO DON'T LET THIS SLIDE AWAY, AND I DON'T THINK THAT IT'S FAIR TO DEDICATE WHATEVER COMES, 100% OF THE AFFORDABLE TO MODERATE INCOME, WE NEED LOW AND VERY LOW-INCOME UNITS.

UM, AND I AM WORRIED ALSO ABOUT THE FIRE ENGINES.

THIS IS THREE STORY, THEY'LL NEED TO BRING LADDER TRUCKS, WHAT ABOUT THE CURVES AND THE ACCESSIBILITY? - THANK YOU. - THROUGH THE SHERIFF'S DEPARTMENT...

- THANK YOU. - ... FOR LADDER TRUCKS? THANK YOU.

- SEEING NO ONE ELSE IN THE ROOM.

MADAM CLERK, DO WE HAVE ANYONE ON THE PHONE? - YES, CHAIR, WE DO.

WE HAVE CALLERS.

MIKE, YOUR MICROPHONE IS NOW AVAILABLE.

- ARE YOU ABLE TO HEAR ME? - YES, WE CAN HEAR YOU.

- OH, THANK YOU.

UH, THIS IS MIKE GUTH FROM DISTRICT 1.

UH, GOOD MORNING SUPERVISORS, I'M SORRY I'M NOT THERE IN PERSON.

SO I WANT TO LET YOU KNOW THAT WAY BACK IN, WHEN WE WERE DOING THE 2004 HOUSING ELEMENT AND WE HAD TO MAKE THE COMBINING DISTRICTS TO, UH, PICK SOME SPOTS AND DO THE PUDS I SAT ON THE PLANNING COMMISSION AT THAT TIME FOR DISTRICT 1 I WAS THE ALTERNATE TO ROB BREMNER AT THE TIME, BUT I WANTED TO SHARE WITH YOU SOME OF THE HISTORY JUST SO YOU HEAR IT OF THE PROBLEMS WITH THE SITE.

NOT URGING YOU TO DENY OR APPROVE BUT JUST, YOU CANNOT OVERSTATE THE RUNOFF PROBLEMS THAT YOU HAVE IN THIS AREA.

UH, I'M LOOKING AT AN OVERHEAD SATELLITE VIEW AS I SPEAK, TO SEE ALL OF THE RUNOFF THAT CROSSES THE FREEWAY.

UH, THERE WERE BIG ISSUES WITH REGARD TO THE WETLANDS THAT WERE JUST ON... IN THIS PART OF THE LIVE OAK PLAIN.

UH, THERE WERE CLAIMS THAT THEY WERE SECTION 404 PROTECTED WATERS OF THE UNITED STATES, AND THERE WAS GOOD BASIS FOR THAT, AND THEN THE COUNTY UM, IT, IT INTERFERED WITH DEVELOPMENT IN THESE AREAS, BUT YOU COULD STARVE THE WETLANDS BY PUTTING IN A PIPE ALONG THE HIGHWAY ON THE FRONTAGE ROAD, DIVERT ALL THE WATER, DRY THEM OUT.

THAT'S ACTUALLY LEGAL, CRAZILY ENOUGH.

AND, UH, BUT THERE'S NO WAY THAT THE PIPES THAT THEY'RE PLANNING ALONG SOQUEL FRONTAGE ROAD TO GO OVER TO RODEO GULCH ARE ABLE TO HANDLE WHAT'S COMING WHEN YOU HAVE A BIG YEAR.

ALTHOUGH THE BIG YEARS ARE LOW PROBABILITY PER YEAR, OVER TIME IT'S 100% THAT THEY'RE GONNA COME BACK.

THE DRAINAGE AREAS IN THE LIVE OAK PLAIN ARE ENORMOUS.

THIS AREA IS ESPECIALLY HEIGHTENED, AND I JUST NEED TO LET YOU TO HEAR THAT YOUR WA-...

THERE ARE GOING TO BE BIG FLOODING PROBLEMS IN THIS AREA.

IT WAS RECOGNIZED WHEN WE WERE DOING THESE HEARINGS WAY BACK THEN, AND WE'RE NOT TAKING THE APPROACHES BACK THEN THAT WERE SORT OF PROMISED THAT WOULD BE USED.

I WISH I HAD MORE TIME TO GO INTO THAT.

LAST THING THAT I'LL SAY IS IT WAS ALSO BROUGHT UP IN THOSE HEARINGS THAT PUTTING HIGH-DENSITY HOUSING NEXT TO THE HIGHWAY, THAT'S THE LOWEST AIR QUALITY PLACE, THAT'S NOT WHERE YOU WANT TO RAISE KIDS.

THANK YOU FOR YOUR ATTENTION.

- THANK YOU.

[APPLAUSE] - DENISE, YOUR MICROPHONE IS NOW AVAILABLE.

[SILENCE] DENISE, YOUR MICROPHONE IS NOW AVAILABLE.

[SILENCE]

[02:15:01]

CHAIR, IT LOOKS LIKE SHE HAS LOWERED HER HAND.

WE HAVE NO FURTHER CALLERS.

- THANK YOU. I'LL NOW CLOSE OUR PUBLIC COMMENT PERIOD AND RETURN IT TO THE BOARD FOR QUESTIONS AND DELIBERATION, AND ACTION.

UM, SUPERVISOR KOENIG.

- YES, THANK YOU, CHAIR.

UH, I'LL BEGIN BY POINTING OUT THAT THIS IS A SITE THAT THE COUNTY DESIGNATED FOR HOUSING NEARLY 20 YEARS AGO.

UH, AND SO IT'S UH, I'M GRATEFUL TO KB HOME THAT YOU'RE COMING IN AND FINALLY PROPOSING TO BUILD EXACTLY THE HOMES THAT WE ASKED FOR, UH, 20 YEARS AGO.

I MEAN, WE ASKED FOR 100 HOMES, AND YOU'RE PROPOSING TO BUILD 100 HOMES, AND SO, UM, I DON'T THINK THAT WE CAN REALLY ARGUE WITH THAT.

UM, YOU KNOW, IT ALSO, I BELIEVE THAT THIS DOES A GOOD JOB OF MAXIMIZING THE UTILIZATION OF THE SITE.

UM, I MEAN, AS WAS POINTED OUT, THE TOWNHOMES, UM, THE THREE-STORY TOWNHOMES ARE REALLY THE PERFECT PRODUCT UH, OR THE PERFECT HOUSING TO BUILD HERE IN THAT UM, IT'S NOT 5, 6 STORIES, UH, TYPE CONSTRUCTION AND AT THE SAME TIME IT'S, UM, YOU KNOW, IT'S SOMETHING THAT, UH, YOU CAN ACTUALLY...

THAT, THAT WILL PENCIL OUT AND THAT YOU CAN ACTUALLY AFFORD TO BUILD.

UM, NOW, SOME CONCERNS WERE RAISED ABOUT ACCESS THROUGH THE SHERIFF'S CENTER, EMERGENCY ACCESS, AND I THINK THE SEWER EASEMENT.

MY UNDERSTANDING IS THAT WE'RE ACTUALLY, THAT THE COUNTY IS GETTING SOMETHING IN RETURN FOR THAT.

UM, I BELIEVE IT'S, UH, OR... SOME SORT OF PREFERENCE FOR COUNTY EMPLOYEES, THAT THEY'D BE GIVEN EARLY AVAILABILITY TO PURCHASE THE UNITS UM, BEFORE THEY'RE LISTED ON THE OPEN MARKET.

IS, IS THAT CORRECT? - THERE IS A, UM, A MEMORANDUM OF UNDERSTANDING UM, PRIOR TO RECORDATION OF ANY EASEMENT ON THAT PROPERTY, THAT WAS EXECUTED BETWEEN THE, BETWEEN REAL PROPERTY AND THE APPLICANT, SORT OF THEY SET EXPECTATIONS THAT, UM, THOSE EASEMENTS ACROSS THAT SHERIFF'S PROPERTY COULD BE ESTABLISHED.

THE EVA, THE UTILITIES EASEMENT.

UM, AND I BELIEVE AS PART OF THAT THERE WAS A, UH, AN AGREEMENT IN THAT PRELIMINARY, UM, AGREEMENT ITSELF ABOUT, UM, SOME SORT OF PREFERENCE FOR A CERTAIN AMOUNT OF TIME FOR COUNTY EMPLOYEES TO BE GIVEN FIRST OPPORTUNITY TO PURCHASE THE UNITS.

- I MEAN, THAT, THAT'S GREAT, RIGHT? I MEAN, IT'S NOT TO BE UNDERSTATED.

THE, UM...

I MEAN, I THINK AS WE'RE GOING TO HEAR IN THE NEXT ITEM ON THE BUDGET, HOUSING COSTS ARE A HUGE CHALLENGE, UH, FOR THE COUNTY.

THE HIGHER HOUSING COSTS ARE, THE MORE THE COUNTY HAS TO PAY, UH, ITS EMPLOYEES, AND THE MORE THEN WE STRUGGLE TO COME UP WITH THE REVENUES TO DO SO.

AND SO THE FACT THAT, UM, WE'LL BE OFFERING THAT THE COUNTY EMPLOYEES WILL HAVE AN OPPORTUNITY TO PURCHASE THESE HOMES IS GREAT.

UM, I BELIEVE SO, I MEAN, WITH THE NOW LET'S TALK ABOUT THE 15% AFFORDABLE, UH, UNITS THAT ARE, THAT ARE BEING PROPOSED.

DO WE HAVE SOME SENSE OF WHAT THOSE UNITS WOULD SELL FOR? - YEAH, I'D HAVE TO, WE HAVE, UH, PRINCIPAL PLANNER SUZANNE ISE UH, HERE WHO'S GONNA GIVE YOU A MUCH BETTER EXPLANATION ON THAT.

I'LL DEFER TO HER.

- SO, UM, THE AFFORDABLE PRICES CHANGE OVER TIME.

IT'S A DYNAMIC FORMULA THAT WE PLUG IN THE PREVAILING INTEREST RATE AT THE TIME.

WE USE AN ANNUAL, UM, INDEX FROM FREDDIE MAC.

UM, WE ALSO PLUG IN THE HOMEOWNER DUES, THE MONTHLY HOMEOWNER DUES FOR THAT PARTICULAR PROJECT.

SO IT WILL VARY FROM PROJECT TO PROJECT.

UM, I CAN GIVE YOU AN EXAMPLE OF SOME RECENT PRICES FROM CONDOMINIUM UNITS THAT WERE SOLD IN APTOS VILLAGE PHASE 2.

THE THREE BEDROOMS THERE I BELIEVE WERE AROUND LIKE 423, $423,000.

UM, SO IN THIS CASE, IT WOULD BE THREE-BEDROOM UNITS.

THE PRICING THERE WILL DEPEND ON THE THREE PRIMARY FACTORS THAT GO INTO OUR FORMULA.

ONE IS THE PREVAILING INTEREST RATES, UM, 2 IS THE DUES, AND THE THIRD ONE IS THE ANNUAL INCOME LIMITS THAT THE STATE PUBLISHES.

THEY PUBLISH A MEDIAN INCOME AMOUNT AND SO THOSE 3 FACTORS, TYPICALLY THE MEDIAN INCOME EITHER STAYS FLAT FROM YEAR TO YEAR, IT COULD GO UP A LITTLE BIT IT GENERALLY DOESN'T GO DOWN.

SO, IF THEY'RE BUILDING OUT LET'S SAY THEY'RE COMPLETING 2 YEARS FROM NOW, IT MIGHT BE FLAT, OR IT MIGHT BE A LITTLE BIT HIGHER.

INTEREST RATES, WE DON'T REALLY KNOW WHERE THEY'RE GOING.

[02:20:02]

AND HOA DUES, UM, I WOULD IMAGINE ON THIS PROJECT THEY'LL PROBABLY BE A LITTLE BIT LOWER THAN THEY ARE IN APTOS VILLAGE JUST BECAUSE OF THE DIFFERENT HOUSING TYPE.

SO, UM, LOWER DUES MEANS THE PRICE COULD BE A LITTLE BIT HIGHER.

SO I HOPE THAT ANSWERS YOUR QUESTION.

- YEAH, THAT'S, THAT'S HELPFUL.

I MEAN, SO THE THREE, THE COMP TO APTOS VILLAGE AT AROUND, I THINK YOU SAID $420,000 - FOR THE THREE-BEDROOM.

- FOR A THREE-BEDROOM.

SO 420, $500,000.

I MEAN, THAT IS EXTREMELY AFFORDABLE FOR A THREE-BEDROOM UNIT.

I MEAN, A THREE-BEDROOM, TWO, TWO AND A HALF BATH, UM, HOME.

I MEAN, I THINK IT WAS POINTED OUT BY ONE OF THE FOLKS FROM THE PUBLIC THAT EVEN A MOBILE HOME TODAY COSTS, I MEAN, SOMEONE SAID I THINK ABOUT $300,000 THAT THEY PAID FOR IT.

I MEAN, MOST MOBILE HOMES TODAY COST MORE LIKE 500,000.

SO YOU'RE REALLY TALKING ABOUT A TOWNHOME WITH 3 BEDROOMS UM, AND TWO PLUS BATHS FOR THE SAME AMOUNT.

I MEAN, THAT IS VERY AFFORDABLE AND DEEPLY DISCOUNTED, DEEPLY DISCOUNTED FROM THE MARKET RATE, WHICH WOULD BE OVER A MILLION DOLLARS.

SO I DON'T THINK THAT, UM, WE SHOULD POO-POO THAT UM, AS, YOU KNOW, NOTHING.

UM, I MEAN, OF COURSE, WE'D ALWAYS LIKE MORE AFFORDABLE HOUSING OF COURSE, 20% WOULD BE GREAT. 40% SOUNDS GREAT.

UM, BUT WE HAVE TO RECOGNIZE THAT IF WE ASK FOR TOO MUCH, WE COULD END UP WITH NOTHING.

AND, UM, I MEAN, THERE'S REALLY...

THAT IS WHAT AFFORDABLE HOUSING LOOKS LIKE TODAY.

I MEAN, UM, YOU KNOW, FOLKS ARE SAYING "WELL BUILD, BUILD DIFFERENT KINDS OF AFFORDABLE HOUSING." I MEAN YOU'VE GOT TO UNDERSTAND, I MEAN, I THINK AGAIN, THE MOBILE HOME PARK IS A GOOD COMPARISON.

WE HAVE ACTUALLY PUT SUCH STRICT RENT CONTROL PROVISIONS IN PLACE FOR MOBILE HOME PARKS THAT NO ONE IS ACTUALLY INTERESTED IN BUILDING MORE MOBILE HOME PARKS.

SO THAT IS NOT AN OPTION.

THIS IS REALLY THE ONLY KIND OF THING THAT CAN BE OF...

THAT CAN BE...

THAT MAKES SENSE TO BUILD, AND WE'RE GETTING 15 DEEPLY DISCOUNTED UNITS AS A RESULT.

UM, AND I'D RATHER TAKE 15% OF 100 RATHER THAN 20% OF ZERO.

SO, UM, I'M, UH, ULTIMATELY SUPPORTIVE OF THE 15%, UM, RATE BECAUSE IT'S GOING TO MEAN WE GET THESE 50...

UH, 15 AFFORDABLE HOMES.

UM, I DO APPRECIATE THE WORK THAT'S BEEN DONE, UH, IN RESPONSE TO THE PLANNING COMMISSION'S SUGGESTION TO IMPROVE, UM, IMPROVE THE, UH, SCREEN BETWEEN, UH, THE HOMES TO THE SOUTH UM, INCLUDING THE MOBILE HOME PARK, AS WELL AS, UH, AND OTHERS, BOTH IN TERMS OF THE 10-FOOT FENCE AND THE ADDITIONAL TREES.

I THINK THAT WILL REALLY HELP UM, YOU KNOW, RESPECT THE PRIVACY OF NEIGHBORS.

I ALSO WANT TO POINT OUT THAT THIS PROJECT IS TO THE NORTH, SO IT'S NOT GOING TO BE BLOCKING ANYONE'S SUN.

THE SUN IS TO THE SOUTH.

UM, AND SO IF YOU'RE, I MEAN, YES IT'S POSSIBLE YOUR, YOUR BACKYARD IS NORTH-FACING, BUT THIS IS NOT GOING TO MEAN LESS SUN.

UM...

- YES IT DOES.

- UM, THE, UH, FINALLY, A LOT OF CONCERNS WERE RAISED ABOUT THE DRAINAGE ISSUE AND I UNDERSTAND, UM, THAT A SIGNIFICANT INVESTMENT IS BEING MADE TO UPGRADE THE STORM DRAIN.

UM, COULD STAFF SPEAK TO, UH, YOU KNOW, WHAT, WHAT FIGURES WERE USED AS FAR AS CALCULATING, YOU KNOW, A 25-YEAR EVENT, 50-YEAR EVENT, 100-YEAR EVENT, UH, WHETHER THE PROPERTY TO THE NORTH, THE DRIVE-IN SITE WAS CONSIDERED, YOU KNOW FUTURE DEVELOPMENT OF THAT, AND POTENTIAL, UM, INFLOWS FROM, FROM THAT PROPERTY AS WELL? - UM, SO YEAH, THE PROJECT WAS REVIEWED BY OUR PUBLIC WORKS UH, STORMWATER MANAGEMENT STAFF.

WE DO HAVE, UH, DIRECTOR MACHADO HERE AS WELL.

UM, UH, AND DID YOU WANT TO SPEAK ON THIS ITEM? - SURE. UH, GOOD MORNING EVERYBODY.

UH, MATT MACHADO, DIRECTOR OF CDI.

I APPRECIATE THE QUESTION AND THE OPPORTUNITY TO, UH, TO SHARE ON IT.

UH, WE ARE LOOKING AT A DESIGN THAT WILL ACCOMMODATE UH, THE NORTH CAPACITY THAT IS TROUBLING TODAY, THAT IS, YOU KNOW, WAS SHARED OUT TODAY.

AND SO WE'RE WORKING WITH THE APPLICANT'S DESIGN ENGINEER TO MAKE SURE THAT WE SIZE THAT PROPERLY.

SO THERE WILL BE SIGNIFICANT COMMUNITY, UH, CAPACITY IN THAT PIPELINE AND YOU ASKED A QUESTION IT'S A 25-YEAR STORM EVENT IS WHAT WE, WE DESIGN FOR.

NOW, YOU KNOW WE ALSO INCLUDE THE TREATMENT WHICH THE ON-SITE, UH, BIOSWALE, THAT'S THE PRE-TREATMENT AND THEN WE'LL ALSO BE DOING TREATMENT AS IT GOES INTO THE GULCH, UH, DOWN SOQUEL AVENUE.

SO WE ARE BEING VERY, VERY MINDFUL OF THE COMMUNITY NEEDS ESPECIALLY TO THE NORTH, THAT AREA THAT'S UNDEVELOPED, GOOD SHEPHERD AND THE, UH, THE SUTTER SITE.

SO, UM, WE BELIEVE THAT WE'LL HAVE THAT ACCOMMODATED QUITE, QUITE WELL WITH THIS PROJECT.

- RIGHT. AND IF THIS PROJECT DID NOT MOVE FORWARD, WERE THERE ANY, DO WE HAVE ANY PLANS OR FUNDING AVAILABLE TO ACTUALLY BUILD THAT STORM DRAIN INFRASTRUCTURE? - WE DO NOT.

- RIGHT. SO I MEAN, IS THERE A THREAT TO LIKE THE ROADWAY IF, YOU KNOW, AN A HUNDRED YEAR EVENT OR SOMETHING,

[02:25:02]

SO THIS IS A, A REAL, UH, WIN FOR, FOR THE AREA AND THE COMMUNITY AS A WHOLE.

- RIGHT.

UM, AND THEN ON THE SITE THERE'S, I MEAN, AS YOU POINTED OUT, THERE'S THE, THE WETLANDS FEATURE.

SO I MEAN, THE FROGS WILL STILL HAVE A HOME, UM, AND THERE, THERE'S ALSO, UH, RETENTION UNDER THE GREEN SPACE, IS THAT RIGHT? I MEAN, THERE'S A, UM, THE CISTERN OR SOMETHING TO THAT EFFECT.

- I, I DO BELIEVE THEY'RE DESIGNING SOME OF THOSE ELEMENTS INTO THE PROJECT.

SOME... A LOT OF THE DETAIL, DETAIL ISN'T DONE YET, BUT WE'VE BEEN COLLABORATING AND, UH, WE RECOGNIZE THE NEEDS AND WE'LL MAKE SURE WE ACCOUNT FOR IT ALL.

- RIGHT. AND OF COURSE, ANY, UH, DEVELOPMENT ON THE DRIVE-IN SITE WOULD ALSO HAVE TO DO SOME STORMWATER RETENTION SO THAT, UM, THAT, THAT WOULD FURTHER REDUCE THE IMPACT IF, IF SUCH A DEVELOPMENT HAPPENED.

- YES, ABSOLUTELY.

- OKAY. THANK YOU.

- THANK YOU.

- SUPERVISOR DE SERPA.

- UM, THANK YOU.

AND, AND I'M NOT SURE WHO, WHO THIS QUESTION WOULD BE BEST ANSWERED BY.

UM, BUT IN TERMS OF THE DEVELOPMENT AND, AND THANK YOU TO SUPERVISOR KOENIG FOR HIS, UM...

THE GREAT QUESTIONS THAT HE ASKED.

I ALMOST EVERYTHING IS ANSWERED FOR ME.

I DID, OVER THE WEEKEND I WAS AT A, A CONVENTION AND I DID SEE, UM, OUR, UH, CARPENTER, UH, UNION UP THERE AND THEY ARE, REMAIN CONCERNED ABOUT THE DEVELOPMENTS IN THIS COUNTY AND THE LACK OF USE OF, UM, REPRESENTED LABOR, LOCAL LABOR ET CETERA.

SO I'M WONDERING WHO CAN SPEAK TO THAT IN TERMS OF NOT JUST THIS PROJECT BUT ANY PROJECT THAT MIGHT BE GOING FORWARD? 'CAUSE CERTAINLY I THINK ALL OF US SITTING UP HERE ARE INTERESTED IN MAKING SURE THAT OUR LOCAL LABOR, UM, THAT'S COMPETENT AND REPRESENTED IS USED ON MANY OF THESE PROJECTS.

SO I'M JUST...

IS THERE ANYBODY HERE WHO CAN SPEAK TO THAT? I DON'T KNOW PETER OR, OR MAYBE KB WANTS TO TALK TO THAT.

- RESPECT TO THE AFFORDABLE HOUSING PROJECTS THAT ARE SUPPORTED BY STATE LOCAL AND FEDERAL SUBSIDIES THEY'RE VERY OFTEN SUBJECT TO, UM, WHAT'S CALLED PREVAILING WAGE AND DIFFERENT LABOR STANDARDS.

SO WE DO, IN OUR SECTION IN HOUSING, WE DO WORK WITH A LOT OF AFFORDABLE HOUSING DEVELOPERS THAT ARE SUBJECT TO THE TYPE OF STANDARDS THAT I THINK WERE REFERENCED BY THE SPEAKER TODAY.

UM, ON THE MARKET RATE SIDE I DON'T THINK WE HAVE ANYTHING IN PLACE IN THE COUNTY IN TERMS OF A REQUIREMENT FOR MARKET RATE DEVELOPERS BUT THAT'S CERTAINLY AN OPTION THAT THE APPLICANT HAS.

I DON'T KNOW IF THE APPLICANT WANTS TO SPEAK.

- UH, WE'VE USED, UH, CONTRACTORS SUBCONTRACTORS.

KB IS OUR OWN GENERAL CONTRACTOR.

SO WE BASICALLY HIRE SUBCONTRACTORS AND STUFF THAT WORK FOR US.

THEY'RE ALL HIGHEST QUALITY SUBS THAT WE CAN, WE CAN BUY UM, AND WE DO THE SAME HERE.

THERE IS NO SUBSIDIES OR ANY, ANY REQUESTS FOR ANY SUBSIDIES ON THE AFFORDABLE UNITS.

WE'RE ESSENTIALLY FINANCING THAT SO WE DON'T HAVE ANY OF THESE RESTRICTIONS IN THAT SENSE.

BUT THAT'S NOT TO MEAN THAT WE'RE NOT USING THE CONTRACTORS THAT ARE...

IF WE CAN FIND LOCAL CONTRACTORS THAT'S USUALLY THE BEST FOR US ANYWAY.

IT'S... BUT IT'S A, IT'S A FREE MARKET AND IT'S A, UH, IT'S A, IT'S A BID PROCESS THAT WE GO THROUGH ON EVERY PROJECT.

SO WE'RE NOT EXCLUDING ANYONE AND WE'RE INCLUDING EVERYONE.

- THANK YOU. UM...

I WILL SAY...

AND SO THANK, UH, THANK YOU TO KB FOR ANSWERING THAT QUESTION.

I REALLY APPRECIATE THAT.

UM, WE HAVE THE HIGHEST NUMBER OF, UM, SKILLED JOURNEYMEN UH, HERE IN OUR WATSONVILLE AREA JUST SOUTH OF WHERE WE SIT NOW.

UM, AND I THINK ALL OF US CARE DEEPLY THAT, UM, THAT OUR OWN RESIDENTS HERE IN SANTA CRUZ COUNTY GET A CRACK, UM, AT SOME OF THESE PROJECTS.

UM, SO THANK YOU FOR CONSIDERING THAT IN THE FUTURE OR ON THIS PROJECT MOVING FORWARD I WILL BE IN SUPPORT OF THIS TODAY.

UH, I REALLY, UM, I APPRECIATE THAT, UM, THESE PROJECTS DO NOT PENCIL OUT AT ANYTHING AT THIS POINT GREATER THAN 15%.

I WISH THERE WAS SOME WAY OUR COUNTY COULD PROVIDE A SUBSIDY SO WE COULD MAKE IT A HIGHER, UH, PERCENTAGE BUT I UNDERSTAND THAT, UM, THAT THESE PROJECTS ARE VERY EXPENSIVE TO BUILD AND I APPRECIATE YOUR WILLINGNESS TO, UM, TO COME INTO OUR COUNTY AND BUILD THIS.

I THINK IT'LL BE VERY HELPFUL FOR OUR HOUSING STOCK AND I, UH, LOOK FORWARD TO ITS COMPLETION.

- SUPERVISOR CUMMINGS.

- THANK YOU. UM, THANK YOU ALL FOR THE PRESENTATION FOR BRINGING THIS PROJECT FORWARD.

I DO HAVE, UM, A NUMBER OF QUESTIONS BEFORE I MAKE SOME COMMENTS

[02:30:05]

SO ONE OF THE THINGS THAT CAME UP IN THE PRESENTATION FROM STAFF WAS THAT THE PUD WASN'T REVIEWED BY THE DESIGN TEAM.

I'M JUST CURIOUS WHY THAT WASN'T THE CASE.

- YEAH. THE, THE PUD WAS, UM, DEVELOPED ESSENTIALLY BY THE PLANNING DEPARTMENT, BY STAFF.

THERE WAS NO APPLICANT PROPOSING A PROJECT AT THAT TIME.

SO, UM, THE, THE, THERE WASN'T A, A SET OF PLANS THAT WE WERE ANALYZING THAT WAS A DESIGN FOR THAT SITE.

WE WERE JUST ESTABLISHING STANDARDS FOR THE BY-RIGHT APPROVAL OF THE A HUNDRED UNITS ON THAT SITE AT THAT TIME.

DOES THAT MAKE SENSE? - I DON'T KNOW IF THAT NECESSARILY ANSWERED MY QUESTION.

MAYBE I'LL, I HAVE ACTUALLY A FEW QUESTIONS FOR THE DEVELOPER.

UM, FIRST QUESTION IS, I'M JUST CURIOUS LIKE WHEN THIS PROPERTY WENT UP FOR SALE OR, AND MAYBE COUNTY STAFF CAN HELP ANSWER THESE QUESTIONS TOO.

LIKE WHEN DID THIS PROPERTY GO UP FOR SALE AND WHAT WAS THE TIME BETWEEN WHEN IT WENT UP FOR SALE TO WHEN IT WAS PURCHASED? - DEFER TO THE APPLICANT.

- I DO NOT OWN THE PROPERTY AT THIS TIME AND IT'S, IT'S...

WE'RE IN CONTRACT TO PURCHASE IT.

AND WE ENTERED INTO THAT CONTRACT ABOUT, UH, TWO YEARS AGO.

- OKAY. SO MAYBE COUNTY STAFF CAN PROVIDE SOME BACKGROUND AND HISTORY ON THE PROPERTY ITSELF.

- GOOD MORNING.

I THINK EVERYBODY...

STEPHANIE HANSEN, ASSISTANT DIRECTOR, CDI, I JUST WANTED TO ADD THAT THERE, UH, WAS A POTENTIAL, UM, MEDICAL OFFICE BUILDING PROPOSED ON THIS SITE, UM, AND THOSE FOLKS WERE UNDER CONTRACT EVENTUALLY, UM, DUE TO CORPORATE DECISIONS THEY DECIDED TO MOVE ON FROM THAT.

BEFORE THAT, SO THAT WAS MAYBE 2020 MAYBE.

BEFORE THAT THERE WAS NO INTEREST IN SELLING THE PROPERTY THAT I'M AWARE OF.

UM, SO IT SAT FOR A VERY LONG TIME, NEARLY 15 YEARS BEFORE THERE WAS INTEREST.

- I GUESS WHAT I'M TRYING TO GET AT IS REALLY UNDERSTANDING KIND OF THE HISTORY OF THIS SITE AND HOW, I MEAN, BECAUSE, YOU KNOW, WHAT WE'VE S-, WHAT WE'VE BEEN PRESENTED WITH AND WHAT'S IN THE PACKET, YOU KNOW, PROVIDES INFORMATION THAT GOING BACK TO AROUND 2004, 2008, THERE WAS A PROCESS, A COMMUNITY PROCESS.

A LOT OF STAFF TIME AND RESOURCES.

THEY WENT INTO DESIGNATING THIS AFFORDABLE ZONING AREA.

AND FOR ALL, I MEAN, FOR ALL THIS TIME, AND AND I WILL SAY THAT THIS WENT THROUGH THE COMMUNITY PROCESS, THIS WENT TO THE STATE AND IT WAS APPROVED IN THE HOUSING ELEMENT BACK THEN TO ALLOW FOR THIS LEVEL OF AFFORDABILITY TO BE ON THIS SITE.

AND SO THE CONCERN I HAVE AND, UM, IS THAT, YOU KNOW, WITH...

WELL, THE FACT IS THAT WE DON'T HAVE MANY.

I WOULD ASSUME, OR, AND MAYBE YOU CAN CLARIFY, IT DOESN'T SEEM LIKE THERE'S THAT MANY SITES THAT REQUIRE THIS LEVEL OF AFFORDABILITY IN THE COUNTY.

- UM, WHAT DO YOU MEAN BY THIS LEVEL? - 40%.

- THERE WERE...

UM, THERE ARE APPROXIMATELY FIVE SITES THAT, UH, RECEIVED THE RM2 ZONING, WHICH WAS THE, UH, RHNA REGIONAL HOUSING NEEDS ALLOCATION, UM, OVERLAY ZONING, UM, AND EACH OF THEM AT THE TIME HAD THE 40% AFFORDABILITY IN IT BECAUSE THAT'S WHAT WAS IN THE CODE AT THE TIME.

LATER, UM, IN 2015, 2018 THE CODES CHANGED, UH, RECOGNIZING THAT 40% WAS NOT FEASIBLE IN OUR MARKET.

AND SO THAT WAS BASED ON A NEXUS STUDY THAT WAS CHANGED TO 15%.

- WELL, ACTUALLY MY UNDERSTANDING IS THAT THE NEXUS STUDY SHOWED 23%.

- UM, UH, 23% FOR SOME, UM, PORTION.

I THINK THE, UH, MORE ABOVE MOD UNITS.

- BECAUSE MY UNDERSTANDING IS THAT WHAT'S GONNA BE SOLD HERE.

THIS ISN'T...

AND JUST FOR CONTEXT, YOU KNOW THE 15% INCLUSIONARY THAT CAME THROUGH MEASURE J FOR LOW INCOME IT'S FOR LOW AND VERY LOW.

AND WHAT WE'RE TALKING ABOUT HERE, WHICH WAS ACTUALLY REFLECTED IN THE 2014 NEXUS STUDY, IS THIS IS GONNA BE MODERATE HOMES FOR SALE, RIGHT? AND IN THAT 2014 NEXUS STUDY, IT SHOWED THAT 23% WAS AN OKAY PERCENTAGE IN TERMS OF FOR MODERATE INCOME HOUSING.

AND THAT'S WHAT WE'RE GONNA GET HERE.

SO I UNDERSTAND THAT THE 40%, YOU KNOW, MAYBE THAT'S TOO HIGH WE NEED TO MAKE AN ADJUSTMENT.

BUT WHAT THE STUDY SHOWED FROM 2014 IS THAT 23% IS ACTUALLY FEASIBLE FOR MODERATE INCOME HOUSEHOLDS.

AND THAT'S WHAT WE'RE TALKING ABOUT HERE TODAY AS OPPOSED TO LOW AND VERY LOW.

I MEAN THAT'S... SO THAT'S A CONCERN THAT I HAVE IS THAT

[02:35:01]

AND THIS IS THE MISSING MIDDLE THAT WE CONSTANTLY TALK ABOUT.

SO, UM, THAT'S ONE OF THE BIGGEST CONCERNS THAT I HAVE WITH US DROPPING IT TO 15.

'CAUSE THIS ISN'T LOW AND VERY LOW INCOME HOUSING.

THIS IS, YOU KNOW...

- [INAUDIBLE] MODERATE. - ...120% OF AREA MEDIAN INCOME.

THAT'S LIKE, YOU KNOW, A LITTLE BIT MORE THAN WHAT WE'RE MAKING.

- AND THAT'S CONSISTENT WITH OUR CODE AT THIS TIME.

- RIGHT.

SO THAT'S ONE OF THE BIGGEST CONCERNS THAT I HAVE REALLY WITH THIS PROJECT IS THAT, YOU KNOW, WE ARE CONCEDING A LOT BY GOING AGAINST WHAT EVEN THE STATE SIGNED OFF ON IN TERMS OF AFFORDABILITY AND TRYING TO UNDERSTAND WHO THE OWNER WAS, I THINK FOR ME IS IMPORTANT BECAUSE, YOU KNOW, I GUESS WHY ALL OF A SUDDEN DO, YOU KNOW, IS A DEVELOPER COMING IN AND WE'RE MAKING CHANGES TO ACCOMMODATE THIS LAND USE WHEN YOU KNOW IT WAS SIGNED OFF ON BY THE STATE THAT 40% FOR AFFORDABILITY WAS SOMETHING THAT WE SHOULD AIM TOWARDS.

AND WE KNOW THAT THAT'S THE HOUSING THAT WE DESPERATELY NEED IN OUR COMMUNITY.

I MEAN, THIS COULD HAVE...

WE HAD A PRE-, WE HAD A PRESENTATION FROM OUR HOUSING AUTHORITY WHO OUTLINED THAT, YOU KNOW, THERE'S AN OPPORTUNITY FOR THEM TO BE ABLE TO BUILD MORE AFFORDABLE HOUSING.

THIS IS ONE OF THE FEW SITES WHERE WE COULD ACTUALLY GET THE HOUSING ACHIEVED.

AND SO WHILE, UM, I UNDERSTAND THAT THERE'S SOME CONCERN WITH THE DEVELOPER...

AND I ACTUALLY WAS HOPING TO MEET WITH THE DEVELOPER BUT UNFORTUNATELY THEY WENT ON A SKI TRIP AND, UM, AND CANCELED OUR MEETING.

BUT, UM, YOU KNOW, I REALLY WANNA TRY TO UNDERSTAND HOW WE CAN MAKE THIS WORK.

BECAUSE I WILL ALSO SAY THAT WHILE THESE...

AND MAYBE THI-, ACTUALLY, THIS IS ANOTHER QUESTION FOR THE DEVELOPER, HOW WILL WE BE ABLE...

YOU MENTIONED IN THE PRESENTATION THAT THESE ARE GONNA BE BELOW A MARKET RATE, WHICH...

OR THE AVERAGE COST OF OUR HOME, WHICH IS 1.2 MILLION.

HOW ARE WE GONNA GUARANTEE THAT? - THERE, THERE IS...

UH, OBVIOUSLY THERE IS NO GUARANTEE.

BUT JUST THE, THE VERY PRODUCT TYPE THAT WAS SELECTED HERE TOWN HOMES TYPICALLY SELL FOR LOWER THAN THE, UH, THAN THE, UH, SINGLE FAMILY DETACHED HOMES OR THE OTHER MORE EXPENSIVE HOMES IN THE COUNTY.

SO MY POINT WAS, IS THAT BY APPROVING THIS TYPE OF PRODUCT, THESE TYPE OF TOWN HOMES, YOU'RE APPROVING SOMETHING THAT SHOULD SELL AT THE...

AT A PRICE POINT AT THE MARKET RATE THAT'S ACTUALLY BELOW THE AVERAGE IN THE COUNTY.

- WELL, I THINK THAT, YOU KNOW, ONE OF THE CONCERNS I HAVE TOO IS THAT THESE UNITS WILL BE SUBJECT TO MARKET PRESSURES AND IT WILL BE, WHATEVER THE MARKET WILL BEAR WILL DETERMINE THE PRICE OF THESE UNITS.

UM, WHEN IT COMES TO THE AFFORDABLE UNITS BEING AT 120% OF AREA MEDIAN INCOME, UM, YOU KNOW, IT WOULD SEEM TO ME THAT WE WOULD TRY TO MAXIMIZE THAT MIDDLE MISSING INCOME HOUSING.

AND I THINK THAT AS SUPERVISOR KOENIG POINTED OUT WE'RE GONNA HAVE A PRESENTATION ON OUR MIDYEAR BUDGET.

UM, AND WHAT IT'S GONNA SHOW IS THAT RECRUITING AND RETAINING PEOPLE IN THIS COMMUNITY IS ONE OF OUR BIGGEST CHALLENGES AS IT PERTAINS TO HOUSING.

AND THAT MISSING MIDDLE IS SOMETHING THAT I THINK THAT WE NEED TO BE MAXIMIZING IN ORDER FOR US TO ALSO MEET THOSE RHNA GOALS WHICH WE ARE NOT ACHIEVING.

UM, SO, YOU KNOW, I, I THINK THAT WHAT THE PLANNING COMMISSION RECOMMENDED IS ACTUALLY REASONABLE GIVEN THAT WE'RE REDUCING THE AFFORDABILITY PERCENTAGE.

UM, AND YOU KNOW, I THINK WE REALLY NEED TO BE FIGHTING FOR THAT KIND OF HOUSING IF THERE NEEDS TO BE SOME FURTHER CONVERSATIONS I THINK THAT'S, YOU KNOW, THAT WOULD BE IMPORTANT, UH, FOR US TO HAVE AND ALSO, UM, I GUESS THE QUESTION FOR THE COUNTY IS WE'VE ALLOCATED FUNDING TOWARDS MEASURE K IS THERE ANY OPPORTUNITY, UM, OR LIKE WHERE'S OUR AFFORDABLE HOUSING FUND AT IN TERMS OF HOW MUCH MONEY WE HAVE AND THE OPPORTUNITY TO HELP SUBSIDIZE IF NECESSARY FOR THE PRESERVING AND HAVING MORE AFFORDABLE HOUSING? - ABOUT OUR, UH, CURRENT HOUSING SPECIAL REVENUE FUNDS FOR OUR LOCALLY AVAILABLE FUNDS.

UM, YOU MAY RECALL ON A RECENT BOARD AGENDA, WE DID REQUEST YOUR APPROVAL FOR A NOTICE OF FUNDING AVAILABILITY [INAUDIBLE] AVAILABLE, UM, APPROXIMATELY 1.5 MILLION FOR, UH, NEW AFFORDABLE RENTAL HOUSING AND ALSO HOUSING REHABILITATION OF AFFORDABLE HOUSING.

UM, THAT'S PRETTY MUCH USING UP THE AVAILABLE, UM, BALANCE THAT WE COULD PUT TO THOSE USES AT THIS TIME.

UM, ADDITIONALLY THERE WAS, UM, A SORT OF POLICY DOCUMENT ADOPTED BY THE BOARD YEARS AGO WHEN THAT AFFORDABLE HOUSING IMPACT FEE FUND WAS ESTABLISHED THAT SET UP PRIORITIES FOR USE OF THAT FUND AND IT REALLY PRIORITIZES USING THOSE FUNDS FOR ASSISTING AFFORDABLE RENTAL HOUSING WITH AN EMPHASIS ON VERY LOW, LOW, AND EXTREMELY LOW.

SO WE HAVEN'T HISTORICALLY USED THOSE FUNDS FOR, UM, SUPPORTING A MARKET RATE DEVELOPMENT TO DO,

[02:40:01]

- SUPERVISOR, IF I MAY, UH, CHIME IN.

I WISH OUR TIMING WAS DIFFERENT FOR, UH, PRESENTATIONS BUT ON UH, MARCH 24TH, WE'RE GONNA BRING A GENERAL PLAN REPORT, ANNUAL REPORT TO YOUR BOARD.

AND, UH, WE ACTUALLY HAVE SOME REALLY INTERESTING AFFORDABILITY DATA THAT WE'LL SHARE.

AND I'LL JUST GIVE YOU A GLIMPSE OF IT HERE JUST TO HELP THIS CONVERSATION ALONG AND GIVE YOU MORE DATA TO, TO THINK ABOUT BEFORE YOUR DECISION TODAY.

BUT, UM, IN OUR CURRENT HOUSING ELEMENT FOR THE PAST TWO AND A HALF YEARS UH, WE'VE BUILT NEARLY 300 HOMES IN TOTAL. IT'S NOT A LOT.

WE'RE TRYING TO, YOU KNOW, ROLL THAT UP A BIT.

BUT OUT OF THOSE NEARLY 300 HOMES BUILT NEARLY 50% WERE LOW INCOME.

AND SO WE ARE HITTING THE MARK THERE.

UM, ACTUALLY THE, THE MODERATES, YOU KNOW, THE, THE MISSING MIDDLE THAT YOU TALK ABOUT, UH, WE BUILT 61 OF THOSE WHICH, YOU KNOW, IS, IS DECENT NUMBERS.

BUT WHAT'S EVEN MORE EXCITING IS, IS IN THE PIPELINE.

NOW, THE PIPELINE, AS WE DEFINE IT, ARE PROJECTS THAT ARE ENTITLED BUT NOT YET, UH, PERMITTED OR APPLICATIONS THAT ARE UNDER REVIEW OR EVEN A PRE-APPLICATION OR SO.

AND WHEN WE LOOK AT THE PIPELINE OF WHAT'S COMING WE HAVE OVER 1100 UNITS IN THAT PIPELINE.

AND AS IT'S PROPOSED TODAY NEARLY 60% OF THOSE WILL BE LOW INCOME, LOW INCOME.

AND SO THAT'S REALLY EXCITING.

I, I DON'T KNOW IF I HAVE A BREAKDOWN FOR THE MISSING MIDDLE FOR THOSE.

I DON'T THINK I DO.

IT'S JUST THAT 60% IS A MIX.

I, I, I'M SORRY, I SAID LOW INCOME.

THAT 60% IS A MIX OF ALL, UH, AFFORDABLE UNITS BEING PROPOSED IN THE, IN THE PIPELINE.

SO JUST FOR YOUR CONSIDERATION THAT THERE'S A FAIR AMOUNT THAT WE'VE DELIVERED IN THE, IN THE LAST TWO AND A HALF YEARS AND THERE'S EVEN MORE COMING.

SO JUST MORE DATA FOR THE CONVERSATION.

THANK YOU FOR LETTING ME SPEAK.

- AND I DO JUST WANNA CLARIFY AS WELL THAT, UM, AND APPRECIATE, UH, THOSE COMMENTS.

IT I THINK WOULD BE HELPFUL.

IT WOULD'VE BEEN HELPFUL FOR US TO HAVE HAD THAT CONVERSATION BEFORE.

ESPECIALLY TO UNDERSTAND THIS MISSING MIDDLE FOR SALE HOUSING THAT WE DESPERATELY NEED IN OUR COMMUNITY.

UM, AND I GUESS ONE OTHER ISSUE THAT THAT'S OF CONCERN TO ME IS THAT, YOU KNOW, WE ARE TOLD IT DOESN'T PENCIL OUT.

BUT WE ARE NOT PROVIDED ANY DATA.

THERE ARE NO NUMBERS.

WE RECEIVED ZERO NUMBERS ON WHY THIS, WHY, YOU KNOW, 20% WON'T WORK.

AND THAT'S A PROBLEM FOR ME.

BECAUSE WE CAN SAY, YOU KNOW THIS WON'T WORK AND THAT WON'T WORK BUT THE REALITY IS, IF WE'RE SUPPOSED TO BE MAKING DATA DRIVEN DECISIONS, AND WHY CAN'T WE SEE THE NUMBERS TO CLEARLY UNDERSTAND WHY THAT WON'T WORK.

SO, YOU KNOW, FOR ME THAT'S THE...

I, I THINK THAT THE PLANNING COMMISSION REACHED A REASONABLE COMPROMISE WITH THIS PROJECT AND I THINK THAT THEIR RECOMMENDATION IS ACTUALLY SOMETHING THAT, YOU KNOW, IT'S NOT PERFECT FOR EITHER PARTY, BUT IT, THAT'S SOMETIMES WHAT COMPROMISES ARE.

UM, ASIDE FROM THE AFFORDABILITY ISSUES, YOU KNOW, THREE STORY TOWN HOMES I THINK THAT FITS VERY WELL WITHIN THE CHARACTER OF THE COMMUNITY.

I THINK IT'S SOMETHING WE WANT THESE FOUR SALE UNITS OR SOMETHING THAT WE WANT.

THE FACT THAT IT'S ON A, YOU KNOW, A LOT.

YOU KNOW, WE'RE NOT DESTROYING A WHOLE LOT OF NATURAL HABITAT.

I THINK THAT'S GREAT.

BUT THE ONLY ISSUE I HAVE IS SEEING IF WE CAN GET TO AT LEAST 20% ON A PARCEL THAT WAS ACTUALLY ZONED FOR 40% AFFORDABILITY.

AND AGAIN, WHEN WE TALK ABOUT THE 15% AFFORDABILITY, MARKET RATE PROJECTS ARE SUBSIDIZING THOSE UNITS FOR LOW AND VERY LOW INCOME PEOPLE.

IF WE'RE BUILDING HOUSING FOR PEOPLE WHO ARE MAKING 120% OF AREA MEDIAN INCOME, THERE SHOULD BE SOME WAY TO MAKE THIS HAPPEN.

AND SO I'M SUPPORTIVE OF THE PLANNING COMMISSION RECOMMENDATION ON THIS ITEM.

- THANK YOU.

SUPERVISOR HERNANDEZ.

- YOU KNOW, I JUST WANNA SAY THAT I WANT TO ECHO SOME OF THE AFFORDABILITY, UH, UNITS, UH, THAT MY COLLEAGUE SUPERVISOR CUMMINGS MENTIONED.

AND ALSO, UH, SOME OF THE LABOR ISSUES THAT SUPERVISOR, UH, DE SERPA BROUGHT UP.

AND THAT'S ALL I WANNA SAY FOR NOW.

- THANK YOU.

I HAVE A COUPLE QUESTIONS.

UM, FIRST, YOU KNOW, WE...

I'M GONNA REALLY ZERO IN ON THE 15 TO 20%, UM, AFFORDABILITY TOPIC.

UM, WE HAVE... WE'RE APPROVING A LOT HERE, UM, AND IT SOUNDS LIKE THERE'S KIND OF UNIVERSAL SUPPORT FOR THE GENERAL, UM, PROJECT MOVING FORWARD.

SO I'M GONNA KEEP MY, MY QUESTIONS FOCUSED THERE.

AND I WANNA START, UM, BY JUST ASKING FOR THE SAKE OF US AND THE PUBLIC A LITTLE MORE ABOUT THE NEXUS STUDY.

UM, KINDA WHAT DOES IT DO? WHAT DOES IT TELL US? - THANK YOU. STEPHANIE HANSEN, CDI.

ARE YOU REFERRING TO THE LAST NEXUS STUDY

[02:45:01]

- OKAY. YEAH.

UM, SO THE UPCOMING NEXUS STUDY IS LARGELY A MARKET ANALYSIS THAT WILL LOOK AT THE INCLUSIONARY RATE, UM, CURRENTLY AT 15%, AND WHETHER THAT'S APPROPRIATE OR WHETHER IT COULD BE, UH, IN OUR CASE, RAISED.

UM, AND IT WILL ALSO LOOK AT THE LEVEL OF THE AFFORDABLE HOUSING IMPACT FEE AND WHETHER, UM, THAT'S APPROPRIATELY, UM, UH, AT, AT THE APPROPRIATE LEVEL TO FUND THE AFFORDABLE HOUSING THAT WE NEED, OR IF THE MARKET WILL BEAR MORE THAN, THAN IT WILL.

SO, IT'S LARGELY A MARKET ANALYSIS OF WHERE WE ARE NOW.

- AND WAS IT A NEXUS STUDY THAT GOT US TO THE CURRENT INCLUSIONARY RATE OF 15%? - THAT'S CORRECT.

- AND WHAT DO WE DO WITH THAT? DO WE SHARE IT WITH THE STATE OR DOES IT, DOES IT BECOME OUR CODE? WHAT, WHERE DOES THE 15% SIT? - YEAH.

IT'S, IT'S IN OUR CODE.

UM, IMPORTANTLY FOR US IT'S ALSO IN MEASURE J.

SO IT, THAT ENDS UP BECOMING KIND OF A FLOOR FOR US.

IT'S A VOTER INITIATIVE.

IT WOULD BE VERY, UM, DIFFICULT FOR US TO GO BELOW THAT.

- AND SO, IF WE WERE TO INSIST THAT A PROJECT COULDN'T MOVE FORWARD WITHOUT MEETING SOMETHING ABOVE OUR INCLUSIONARY RATE, DOES IT COME, DOES THAT COME WITH ANY RISKS OR CONSEQUENCES? THIS MIGHT BE ACTUALLY COUNTY COUNCIL QUESTION.

- YEAH, IT DOES.

I MEAN, I, THAT'S THE, THE, THE VERY SHORT ANSWER TO YOUR QUESTION.

I MEAN, THERE'S, THERE'S 2 RISKS INVOLVED.

UM, ONE RISK IS THAT A DEVELOPER PULLS OUT BECAUSE THEY CAN'T MAKE IT PENCIL OUT AND THEY JUST LEAVE.

UM, THE SECOND RISK IS THAT IN CERTAIN SITUATIONS, IT'S POSSIBLE FOR A DEVELOPER TO FILE AN INVERSE CONDEMNATION UM, LAWSUIT INVOLVING A REGULATORY TAKING.

I'M NOT THAT CONCERNED ABOUT THAT HAPPENING HERE.

FRANKLY, FROM ALL OF THE INFORMATION I'VE SEEN, UM, UM, IT'S POSSIBLE, YOU KNOW, BUT, BUT I DON'T BELIEVE PROBABLE AND, UM, YOU KNOW BUT IF THAT RISK DOES EVENTUATE, UM, THAT COULD COME WITH A HEFTY BILL.

AT THE END OF THE DAY, IF THE COUNTY WERE TO LOSE THAT LAWSUIT IT'S UNINSURED MONEY THAT WOULD COME FROM THE GENERAL FUND TO PAY WHATEVER DAMAGES WOULD BE, UH, AT ISSUE AS WELL AS ATTORNEY'S FEES.

UM, SO IT'S, IT'S POSSIBLE.

- THANK YOU.

AND THIS IS A QUESTION FOR, WELL, ACTUALLY BEFORE I MOVE ON, WE, IN PREVIOUS BOARD DECISIONS OVER THE LAST SEVERAL MONTHS, WE HAVE BEEN KIND OF DEFERRING TO THE NEXUS STUDY, UM, AND, AND WE'RE TRYING NOT TO MAKE KIND OF ONE-OFF DECISIONS ABOUT PROJECTS WITHOUT HAVING A UNIVERSAL DIRECTION FOR FUTURE PROJECTS.

UM, CAN, CAN YOU SHARE JUST, UM, IS THAT SOMETHING THAT YOU'D CONTINUE TO RECOMMEND? UM, YOU KNOW, THERE, WE'RE BEING ASKED, WE'RE GIVING, WE'RE BEING GIVEN A COUPLE OPTIONS AND ONE IS KIND OF VERY SPECIFIC TO THIS PROJECT VERSUS STICKING TO WHAT WE'D DECIDED PREVIOUSLY OR WHAT THE CODE SAYS.

JUST HOW WOULD YOU ADVISE US? - THE, THE STAFF'S RECOMMENDATION WAS TO STICK WITH THE 15% BECAUSE THAT'S WHAT'S IN OUR ORDINANCE.

UM, THAT'S WHAT THIS PARTICULAR DEVELOPER HAS BEEN PLANNING FOR.

UM, THERE WAS STAFF SUPPORT FOR THIS AMOUNT.

UM, YOU KNOW, THERE'S PROBABLY ADDITIONAL RISK TO THE, THE BOARD, UM, IN GOING HIGHER COULD BE, UH, TAKING ACTIONS TO THWART THE APPROVAL OF, UH, HOUSING DEVELOPMENT UNDER THE HOUSING ACCOUNTABILITY ACT.

UM, UH, SO OUR, OUR STAFF RECOMMENDATION REMAINS TO, UH, STICK TO THE 15, UH, 15%.

- THANK YOU. AND THEN, I DO HAVE A QUESTION FOR THE DEVELOPER NOW.

UM, YOU KNOW, WE DID RECEIVE A LETTER ON YOUR BEHALF.

UM, AND IT SAYS REALLY CLEARLY HERE, "THE PLANNING COMMISSION'S RECOMMENDATION WOULD RENDER THE PROJECT ECONOMICALLY INFEASIBLE." CAN YOU JUST SPEAK A LITTLE BIT MORE TO THAT? - I JUST, YOU KNOW, IT ISN'T FEASIBLE, UH, IN OUR, IN OUR

[02:50:02]

UH, AND IT IS NOT MEANT TO BE A THREAT, BUT IT'S JUST THE REALITY OF THE, UH, OF THE SITUATION.

IF THERE'S AN APPROVAL WITH MORE THAN THAT, UH, WE SIMPLY WON'T BUY THE PROPERTY AND BUILD THE PROJECT.

IT'S JUST BECAUSE IT WON'T HIT OUR OUR MINIMUM INVESTMENT STANDARDS SO...

- THANK YOU. - YEAH.

- DID OUR, DID MY COLLEAGUES HEAR THAT OKAY? - NO.

- YEAH.

- I DID NOT HEAR.

- THANK YOU.

UM, I APPRECIATE THAT.

UH, I HAVE SOME MORE COMMENTS, BUT DO WE HAVE ANY MORE QUESTIONS? SO I, I APPRECIATE HEARING THAT AND, UM, I JUST WANNA, I WANNA START OFF BY THANKING YOU FOR BRINGING THIS PROJECT FORWARD.

UM, I THINK THIS BOARD SHOULD BE PROUD ANYTIME ANY HOUSING ACTUALLY GETS BUILT, UM, IN THIS COMMUNITY.

WE NEED HOUSING.

UM, WE JUST HAD A BOARD RETREAT SEVERAL WEEKS AGO WITH ALL 5 OF US, AND WHAT CAME UP OVER AND OVER AND OVER AGAIN IS THE IMPORTANCE OF HOUSING, YOU KNOW, IN PARTICULARLY, IN A PARTICULAR AFFORDABLE HOUSING.

UM, IT COMES UP AS IT RELATES TO OUR WORKFORCE, UH, OUR LOCAL BUSINESSES, OUR HEALTHCARE WORKERS, OUR STUDENTS UM, IT HAS AN EFFECT KIND OF DOWN THE LINE IN OUR HEALTHCARE SERVICES AS IT RELATES TO, YOU KNOW, MENTAL HEALTH AND SUBSTANCE USE AND KIND OF THE STABILITY OF FAMILIES AND HAVING, YOU KNOW, A HEALTHY COMMUNITY.

AND, YOU KNOW, IN MY DISTRICT IT COMES UP A LOT AS IT RELATES TO AGING AND, UM, FOLKS HAVING A PLACE TO AGE, PARTICULARLY AS, YOU KNOW, THE MORE KIND OF RURAL HOUSING OPTIONS ARE MORE DIFFICULT FOR SENIORS, UM, AND SOMETHING LIKE A TOWNHOUSE MODEL IS A GOOD FIT FOR, FOR THAT, UM, POPULATION.

AND ANOTHER THING THAT WE TALKED ABOUT IN THAT RETREAT WAS THAT WE CAN'T LET PERFECT BE THE ENEMY OF GOOD WHEN IT COMES TO HOUSING.

UM, I WOULD LOVE TO SEE MORE AFFORDABLE UNITS.

I THINK, EVERY ONE OF US WOULD BE THRILLED TO APPROVE A 100% VERY LOW AFFORDABLE HOUSING PROJECT.

AND I THINK THAT'LL COME TO US.

WE, WE HAVE A NUMBER OF PROJECTS IN THE PIPELINE.

UM, BUT FOR THIS PROJECT, WHAT WE'RE HEARING FROM THE DEVELOPER IS THAT THAT'S NOT REALISTIC AND ISN'T...

WE'RE NOT JUST HEARING THAT FROM THE DEVELOPER.

WE ALSO RECEIVED A LETTER FROM SANTA CRUZ YIMBY, WHO'S COMPELLING US ASKING US, PLEASE PASS AT 15% AFFORDABLE BECAUSE WE CAN'T RISK LOSING PROJECTS.

WE CAN'T RISK HOUSING NOT BEING BUILT.

UM, WE CAN SIT HERE STUBBORNLY AND, YOU KNOW, TRY TO DICTATE HOW TO DO THIS, BUT WHAT WE WILL GET IS ZERO NEW UNITS, AND AND THAT'S NOT SOMETHING THAT I THINK WE CAN AFFORD TO DO TODAY.

UM, OUR NEXUS STUDY ESTABLISHES THE INCLUSIONARY RATE OF 15%, STATE LAW SUPPORTS THAT AS WELL.

UM, AND SO, I'M GONNA BE SUPPORTING THE 15% AFFORDABLE HOUSING, UH, OPTION TODAY.

UM, YOU KNOW, THERE'S A LOT OF WAYS TO GET MORE AFFORDABLE HOUSING IN THIS COMMUNITY.

ONE IS BY REQUIRING AFFORDABLE HOUSING UNITS, WHICH ARE SUBSIDIZED BY MARKET UNITS.

UM, YOU KNOW, DOING A VARIETY OF WAYS OF DEVELOPING REALLY SPECIFIC AFFORDABLE UNITS.

WE HAVE THAT IN THE PIPELINE, NOT ENOUGH, BUT WE'RE WORKING TOWARDS IT.

AND ANOTHER WAY IS TO INCREASE THE OVERALL SUPPLY OF AVAILABLE HOUSING IN GENERAL SO THAT HOUSING PRICES MAY LEVEL OUT.

WE'RE SEEING THAT IN OTHER PARTS OF THE STATE EVEN EXPENSIVE PARTS OF THE STATE WHERE HOUSING PRICES ARE LEVELING OUT BECAUSE THEY ARE MAKING PROGRESS IN THEIR HOUSING DEVELOPMENT.

UM, AND WE CAN'T ALLOW HOUSING TO BE SUCH A SCARCE COMMODITY, AND WE CAN'T SIT HERE MAKING DECISIONS THAT SLOW DOWN THE DEVELOPMENT OF HOUSING BECAUSE WE JUST CAN'T AFFORD THAT.

UM, SO I'M JUST REALLY, I'LL, I, I WILL BE PROUD TO SUPPORT A PROJECT A HOUSING PROJECT TO MOVE FORWARD.

UM, AND THAT'S, THAT'S WHERE I'LL BE GOING WITH THIS.

UM, WE DON'T HAVE A MOTION ON THE FLOOR YET, SO I'LL TURN IT OVER TO SUPERVISOR KOENIG FOR A MOTION.

- YEAH, I THINK YOU HIT THE NAIL ON THE HEAD, UH, CHAIR IN THAT WE CANNOT LET THE PERFECT BE THE ENEMY OF THE GOOD AND THIS IS A GOOD PROJECT.

SO WITH THAT, I WILL MOVE STAFF RECOMMENDATIONS.

- I'LL SECOND.

- SUPERVISOR CUMMINGS.

- YEAH, I JUST WANT TO MAKE SOME CLARIFICATIONS BECAUSE I DO THINK THAT THERE WAS SOME INFORMATION THAT WAS MISREPRESENTED IN SOME OF THE COMMENTS THAT STAFF MADE RIGHT NOW.

SO, PAGE 426 OF THE PLANNING COMMISSION AGENDA REPORT THAT CAME OUT ON THIS ITEM.

I'M GONNA READ EXACTLY WHAT IT SAYS, "AFFORDABLE HOUSING OBLIGATIONS FOR REGIONAL HOUSING NEEDS

[02:55:03]

THE PRIMARY PURPOSE OF THE REGIONAL HOUSE, HOUSING NEEDS ARE COMBINING DISTRICTS, IS TO PROVIDE FOR DENSITIES OF 20 UNITS PER ACRE.

THESE DISTRICTS AND DENSITIES ARE NEEDED IN ORDER TO, FOR THE COUNTY TO MEET ITS REGIONAL HOUSING NEEDS ASSESSMENT OBLIGATIONS.

THE 40% INCLUSIONARY OBLIGATION THAT APPLIES TO THESE DISTRICTS ADDRESSES A POLICY OBJECTIVE BUT IS NOT REQUIRED TO MEET THE COUNTY'S HOUSING ELEMENT OBLIGATIONS.

THE FINDING OF THE NEXUS STUDY ANALYSIS, OF THE NEXUS ANALYSIS SUPPORT ON AVERAGE, A MAXIMUM INCLUSIONARY OBLIGATION THROUGH 100 PER-, 150% OF AMI OR APPROXIMATELY 23%.

THIS MAXIMUM FALLS SHORT OF THE STANDARD 40% INCLUSIONARY OBLIGATION FOR PROPERTIES WITHIN THE R COMBINING DISTRICTS, ALTHOUGH IT HAS NOT YET BEEN DETERMINED IF THE REQUIREMENT MUST BE JUSTIFIED BY A NEXUS STUDY.

ADDITIONALLY, THE FINANCIAL FEASIBILITY ANALYSIS INDICATES THAT THE 40% INCLUSIONARY REQUIREMENT IS NOT FINANCIALLY FEASIBLE WITHOUT COUNTY SUBSIDIES." WHAT I REALLY WANNA HIGHLIGHT THERE IS OBVIOUSLY THE 40% IS NOT FEASIBLE, BUT THE 2014 NEXUS STUDY, WHICH HAS BEEN COMPLETED THAT WE HAVE AND WE CAN REFERENCE 'CAUSE WE CAN'T REFERENCE SOMETHING THAT HASN'T BEEN DONE YET THAT NEXUS STUDY SAYS THAT ON AVERAGE, A MAXIMUM INCLUSIONARY OBLIGATION OF APPROXIMATELY 23%, THAT THAT IS FEASIBLE, AND THAT IS THE HOUSING THAT WE'RE CREATING.

15% APPLIES TO LOW AND VERY LOW.

WE'RE TALKING ABOUT MODERATE INCOME HOUSING.

THAT'S THE MISSING MIDDLE.

THAT'S WHAT WE NEED.

I'M GONNA MOVE THAT WE, UM, S-, BASED ON, BASED ON THAT WHICH WAS, WHICH WAS TAKEN FROM OUR 2014 NEXUS STUDY, AND BASED ON WHAT WAS PRESENTED TO THE PLANNING COMMISSION, AND THE PLANNING COMMISSION'S WILLINGNESS TO COMPROMISE, I'M GONNA MOVE THE PLANNING COMMISSION RECOMMENDATION, UH, FOR THE 20%, UM, AFFORDABILITY.

- CAN WE JUST, JUST ONE SECOND.

- I'LL SECOND IT.

- OKAY. BECAUSE THERE'S A SECOND ON THE SUBSTITUTE MOTION SO THE SUBSTITUTE MOTION WILL BE HEARD FIRST.

HOWEVER, I THINK THAT THE, THAT THE ORIGINAL MOTION NEEDS TO BE AMENDED BEFORE YOUR SUBSTITUTE MOTION WAS, UH, HEARD, AND, AND, UM, I THINK THAT IT JUST NEEDS TO BE AMENDED FOR THE RECORD.

YOUR MOTION WILL STILL BE HEARD FIRST.

UM, GO ...

- I, I BELIEVE WHAT COUNTY COUNCIL'S REFERRING TO IS THAT WE NEEDED CLARIFICATION THAT IN THE MOTION THAT I MADE AND SUPERVISOR DE SERPA SECONDED, IT WAS FOR THE 15%, UH, AFFORDABLE...

- YES, IT WA-, WHAT YOU, WHAT, I THINK WHAT YOU MEANT TO SAY IS IS, IS ACCEPT STAFF RECOMMENDATION WITH THE 15% AFFORDABLE RATE.

IS THAT RIGHT? - THAT'S CORRECT, YES.

- OKAY. OKAY.

SO, NOW THAT THAT'S CLEAR, THE SUBSTITUTE MOTION FOR ACCEPTING STAFF RECOMMENDATION WITH THE 20% INCLUSIONARY RATE WILL BE HEARD FIRST.

- OKAY. WE HAVE A MOTION FROM SUPERVISOR CUMMINGS, A SECOND FROM SUPERVISOR HERNANDEZ.

DO WE HAVE FURTHER COMMENT? - I, I'LL JUST SAY RESPECTFULLY, 2014 WAS 12 YEARS AGO, AND THE PRICE OF A HOME IN SANTA CRUZ COUNTY AT THAT TIME WAS $665,000 ON AVERAGE.

SO, LESS THAN HALF OF, UH, WHAT THE MEDIAN SALE PRICE IS TODAY.

I, I RESPECTFULLY BELIEVE THAT THAT DATA IS NO LONGER RELEVANT.

I WILL PLAN TO VOTE NO ON THIS MOTION.

- I'LL ALSO EXCUSE ME, WE'RE NOT GONNA DO, UM, FROM THE PUBLIC ANY SHOUTING.

THANK YOU.

SO, I'LL ALSO BE VOTING NO, UM, BECAUSE UNFORTUNATELY WHAT THE 5 OF US HAVE INHERITED ARE DECADES OF DECISIONS TRYING TO BE PERFECT IN HOUSING DEVELOPMENT, WHICH HAS MEANT NO NEW HOUSING.

AND TODAY, UM, WE HAVE AN URGENT NEED TO DEVELOP NEW HOUSING.

IN THIS COMMUNITY, WE HEAR IT EVERY SINGLE DAY, IT'S THE NUMBER ONE ISSUE IN THIS COMMUNITY.

UM, WE'RE WITH MANY OF OUR AFFORDABLE HOUSING PARTNERS WHO ARE URGING US TO SUPPORT THE 15% RATE.

UM, SO I'LL BE VOTING NO ON THE MOTION AS WELL.

WE HAVE NO FURTHER COMMENTS.

MADAM CLERK, WILL YOU CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE. AYE.

- CUMMINGS? - AYE.

- KOENIG? - NO.

- DE SERPA? - NO.

- MARTINEZ.

- NO.

MOTION FAILS 2 TO 3.

WE'RE NOW GONNA MOVE ON TO THE PREVIOUS MOTION, WHICH WAS MADE BY SUPERVISOR KOENIG AND SECONDED BY SUPERVISOR DE SERPA.

IS THERE ANY FURTHER COMMENT ON THE MOTION? - I, I WILL JUST SAY ONE THING, WHICH IS THAT, THAT I HEAR UM, SUPERVISOR KOENIG'S CONCERN WITH THE NEXUS STUDY BEING FROM 2014, AND THAT'S, YOU KNOW, ABOUT 12 YEARS OLD.

I WILL SAY THAT THAT IS WHAT STAFF ALSO USE TO, UM, MAKE THEIR RECOMMENDATION THAT WE REDUCE THE AFFORDABILITY FROM 40% TO 15%.

SO, IT'S JUST ONE OF THESE THINGS.

[03:00:01]

UM, THAT BEING SAID, UM, YOU KNOW, OBVIOUSLY WE TRIED TO SUPPORT THE PLANNING COMMISSION AND THEIR, UM, OBJECTIVES AND I THINK THAT WE SHOULD BE MAXIMIZING, ALTHOUGH AT THE SAME TIME, I'M NOT GONNA VOTE AGAINST A PROJECT THAT'S GONNA BRING 15, AT LEAST 15 UNITS OF, FOR SALE MIDDLE INCOME HOUSING ONLINE.

SO, I'LL BE SUPPORTING THE MOTION, UM, AND JUST HOPE THAT WE CAN MEANINGFULLY TRY TO MEET SOME OF THE GOALS AND STANDARDS THAT WE SET FOR OURSELVES IN THE PAST AS IT RELATES TO MAKING SURE THAT WE HAVE ALL FORMS OF HOUSING COMING ONLINE.

UM, VERY LOW, LOW, MODERATE, IS WHAT THIS COMMUNITY NEEDS, I MEAN, TO MAXIMIZE THAT TO THE GREAT EXTENT FEASIBLE.

- MADAM CLERK, WILL YOU CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE.

- CUMMINGS? - AYE.

- KOENIG? - AYE.

- DE SERPA? - AYE.

- AND MARTINEZ. - AYE.

MOTION PASSES 5 TO ZERO.

SO, WITH THAT, WE ARE GOING TO TAKE RECESS FOR A LUNCH PERIOD AND CLOSED SESSION.

DO WE HAVE ANYTHING REPORTABLE FOR CLOSED SESSION? - NO.

ALL RIGHT, AND WE WILL RETURN AT 1:30.

- RECORDING STOPPED.

WELCOME BACK EVERYBODY.

WE ARE NOW GOING TO BEGIN WITH OUR FINAL ITEM

[10. Consider the General Fund Mid-Year Budget Report with updated estimates for Fiscal Year (FY) 2025-26 and updated General Fund forecast, schedule public hearings for the Proposed FY 2026-27 Budget, beginning on May 5, 2026, continuing to June 10, 2026, and June 11, 2026, and concluding on June 24, 2026, schedule June 24, 2026, as the date to consider amendments to the County's Unified Fee Schedule, and take related actions - 4/5 vote required]

SCHEDULE JUNE 20, JUNE 24, 2026, AS THE DATE TO CONSIDER AMENDMENTS TO THE COUNTY'S UNIFIED FEE SCHEDULE AND TAKE RELATED ACTIONS.

WITH THAT, WE'RE GOING TO BEGIN WITH A STAFF PRESENTATION.

IT LOOKS LIKE OUR STAFF'S ALREADY JOINING US.

UM, WELCOME. I THINK WE'RE GONNA START OFF WITH CEO COBURN.

- YEAH, THANK YOU CHAIR, MEMBERS OF THE BOARD.

I'M NICOLE COBURN, COUNTY EXECUTIVE OFFICER.

TODAY I AM JOINED BY ELISSA BENSON, MY ASSISTANT, COUNTY EXECUTIVE OFFICER AND MARCUS PIMENTEL, THE COUNTY BUDGET MANAGER.

I WANNA ACKNOWLEDGE RYAN FRIEDWORK, WORKED VERY CLOSELY ON THIS STAFF REPORT IN PRESENTATION WITH US, BUT DUE TO THE LENGTH OF, UM, TIME WE'VE BEEN SPENDING ON ITEMS WE'VE CONSOLIDATED THE NUMBER OF PRESENTERS, BUT I DID WANNA ACKNOWLEDGE RYAN'S HARD WORK.

SO, NEXT SLIDE.

SO, TODAY, THE OBJECTIVES TODAY WE'RE GONNA PROVIDE YOU WITH AN OUTLOOK ON THE UPCOMING BUDGET FOR FISCAL YEAR 2026/27 AND BEYOND.

UM, AND AS PART OF THIS, I WANNA NOTE THAT THIS IS NOT YOUR NORMAL ROUTINE MIDYEAR BUDGET UPDATE.

UM, IN THE PAST YEARS, THESE UPDATES WERE WHAT I FELT WERE VERY TECHNICAL AND INFORMATIONAL.

UM, WHAT WE'RE GONNA PRESENT TO YOU TODAY IS, UM, AN ATTEMPT TO BE, HAVE MORE OF A DISCUSSION AROUND THE BUDGET TO THINK STRATEGICALLY AND ENGAGE WITH YOU, WHICH IS DIFFERENT FROM WHAT WE'VE DONE IN THE PAST.

UM, I DO WANNA NOTE THAT WE HAVE A NUMBER OF RECOMMENDATIONS IN THE STAFF REPORT, UH, BECAUSE THIS IS A LOT OF INFORMATION TO TAKE TODAY.

UM, I WANNA AT THE OUTSET SAY THAT WE ARE RECOMMENDING ALL OF THE RECOMMENDATIONS, BUT WITH, WITH, WITH [INAUDIBLE], WITHDRAW NUMBER TWO, RELATED TO HAVING THE ROBUST DISCUSSION ON THE FOUNDATIONAL PRINCIPLES.

WE'RE GONNA COVER THAT TODAY, BUT WE WANT YOU TO LISTEN AND TO THINK ABOUT IT, AND THEN WE WILL COME BACK ON MARCH 10TH TO REALLY ENGAGE FURTHER ON THOSE PRINCIPAL, UH, BUDGET, UH, THAT WE'RE, THE FOUNDATIONAL PRINCIPLES THAT WE'RE USING TO CRAFT THIS NEW PROPOSED BUDGET.

UM, ALSO TODAY WE'RE GONNA TALK ABOUT ALL OF THE RISKS THAT THE COUNTY IS FACING WITH REGARD TO THE UPCOMING BUDGET AND THE STATUS OF OUR RESERVES.

UM, WE ARE TAKING, UM, SOME IMMEDIATE FISCAL ACTIONS TO HELP REIGN IN SOME OF OUR COSTS BECAUSE OF WHAT WE'RE SEEING.

SO, WE'RE GONNA GO THROUGH THAT AND UM, LIKE I MENTIONED, WE'RE GONNA DISCUSS THE PRINCIPLES THAT WOULD GUIDE BUDGET DEVELOPMENT, BUT RETURN ON MARCH 10TH WITH A FURTHER, UH, DISCUSSION AND POTENTIALLY DIRECTION FROM THE BOARD.

UM, THIS FISCAL ENVIRONMENT THAT WE'RE NOW FACING

[03:05:01]

AND SO, WE'RE GONNA BE TALKING ABOUT SOME OF THE STRUCTURAL RISKS WE'RE FACING WHAT THE EXPOSURE IS AT THE FEDERAL AND STATE LEVELS AND THOSE ACTIONS WE'RE TAKING NOW TO ADDRESS ALL OF IT.

UH, NEXT SLIDE.

SO WHY WE'RE HERE.

UM, OUR FISCAL OUTLOOK HAS WORSENED RECENTLY.

UM, AND THIS IS THE RESULT OF SEVERAL FACTORS.

THE FIRST OF WHICH IS OUR COUNTY COSTS ARE RISING VERY QUICKLY, MORE QUICKLY THAN OUR REVENUES.

AND AS  MARCUS IS GOING TO DISCUSS, UM, WE ARE NOW FACING A FISCAL YEAR 2026/27 GENERAL FUND GAP THAT'S PROJECTED TO REACH ABOUT $23.2 MILLION.

THE OTHER FACTOR THAT'S MOST SIGNIFICANT IS JUST THE SIGNIFICANT AND EVOLVING IMPACTS FROM THE FEDERAL BUDGET AND POLICY CHANGES UH, PRIMARILY OF WHICH IS HR1, UM, THIS ON ITS OWN IS RESULTING IN AN ADDITIONAL $25.6 MILLION IN INCREASED COSTS AND REDUCED REVENUES.

AND WE'RE GONNA TALK WITH YOU FURTHER ABOUT THAT UM, LASTLY, IN THE GOVERNOR'S PROPOSED BUDGET THAT NEWSOME INTRODUCED IN JANUARY, THERE IS NO FUNDING TO BACKFILL COUNTIES.

UM, SO REALLY INSUFFICIENT FUNDING TO COVER OUR FEDERAL AND STATE MANDATED PROGRAMS. UM, AND THIS, THIS LAST POINT IS REALLY CRITICAL, SO I JUST WANNA EMPHASIZE IT.

UM, THE STATE OF CALIFORNIA IS THE ENTITY DESIGNATED TO ADMINISTER THESE STATE AND FEDERAL MANDATES.

UM, THEY HAVE DELEGATED RESPONSIBILITY FOR THAT ADMINISTRATION TO COUNTIES.

AND WE AS A COUNTY WITH OUR OTHER COUNTIES THAT WE ARE MEMBERS OF THROUGH THE CSAC, THE CALIFORNIA STATE ASSOCIATION OF COUNTIES, FEEL VERY STRONGLY THAT THE STATE OF CALIFORNIA NEEDS TO STEP UP AND PROVIDE A LONG-TERM FUNDING SOLUTION FOR THESE REALIGNED MANDATED SERVICES THAT HAVE SHIFTED TO COUNTIES.

OUR REALIGNMENT REVENUES ARE JUST NOT ENOUGH TO SUSTAIN THESE SERVICES.

UM, AND SO WE ARE WORKING CLOSELY WITH CSAC AND OUR PARTNER COUNTIES TO TRY TO FIGURE OUT, WHAT IT IS THAT WE'RE GONNA BE ASKING OF THE STATE OF CALIFORNIA UM, TO HELP US SOLVE THIS PROBLEM.

UH, I ALSO WANNA NOTE JUST AS A WHOLE, YOU KNOW, THE CHALLENGES WITH THE COUNTY'S COSTS RISING AND, UM, REALLY THAT THIS HAS, YOU KNOW, BEEN DEVELOPING OVER A NUMBER OF YEARS, AND WE'RE GONNA HAVE TO LOOK REALLY CAREFULLY AT DEVELOPING A SUSTAINED DELIBERATE APPROACH TO RESOLVING THE STRUCTURAL IMBALANCE WE'RE FACING.

UM, WE'RE GONNA BE DISCUSSING MANY OF THOSE DETAILS AND, UM, LIKE I MENTIONED, WE'RE ALREADY TAKING SOME STEPS TO ADDRESS IT, BUT WE, WE FEEL LIKE WE HAVE SOME IDEAS AND, UM, A PATH FORWARD IN TERMS OF COMING TO YOU ALL WITH A BALANCED BUDGET.

UM, SO NEXT SLIDE.

SO WITH THAT, I THINK I WANNA TURN IT OVER TO MARCUS WHO'S GOING TO DISCUSS OUR SITUATION AND SOME OF THE RISKS.

- YEAH. THANK YOU NICOLE.

UM, I DO JUST WANT TO, AGAIN, THANK RYAN FOR YOUR HELP AND GUIDANCE AND SUPPORT AND GETTING US TO THIS MOMENT AND CREATING THE CONTENT AND HELPING...

RE-IMAGINE HOW WE VISUALLY PRESENT THIS.

SO, I, I HOPE THIS LANDS WELL WITH YOU TODAY.

UM, OUR FORECAST HAS WORSENED JUST A FEW MONTHS AGO WHEN YOU, THE BOARD SAW THE LAST VERSION OF OUR FORECAST AND THE ADOPTED BUDGET WE ARE A LITTLE BIT MORE OPTIMISTIC IN OUR OUT YEARS OF '29, '30 '30, '31, SEEING A, A, A BELL RECOVERY.

UM, THAT HAS CHANGED.

AND WE'LL TALK A LITTLE BIT ABOUT THAT MORE.

IT'S DETAILED IN OUR, IN OUR BOARD REPORT.

BUT LIKE ANY FORECAST, THIS IS A FORECAST THAT'S A SNAPSHOT IN TIME AS OF THE MONTH OF JANUARY WHERE WE FINISH THE FIRST SIX MONTHS OF THE YEAR.

SO IT'S A SNAPSHOT IN TIME OF OUR CURRENT OPERATIONS, NOT THE DIRECTION WE ARE GOING.

IF WE DO NOTHING, THIS IS WHAT WE FACE.

WE WILL DO SOMETHING AND WE'VE ALREADY BEEN DOING THINGS.

SO THAT'S REALLY A REALLY IMPORTANT TAKEAWAY IS, THINK OF THIS AS A, A, A, A LEADING INDICATOR AS WE MOVE INTO BUDGET DEVELOPMENT SEASON OF THE TREND THAT WE ARE FACING AND THE TRAJECTORY THAT WE ARE HAVING TO RESOLVE, UM, INCLUDING OUR FORECAST, OUR STRONG PRESUMPTIONS OF PROPERTY TAX GROWTH, SALES TAX, MILD GROWTH VEHICLE LICENSE FEE GROWTH.

WE ARE BEING VERY CREDIBLE IN OUR REVENUE GROWTH.

[03:10:02]

SO WE'VE WORKED WITH OUR ASSESS, OUR ASSESSOR RECORDER ON REALLY PROJECTING OUT CREDIBLE NUMBERS FOR OUR PROPERTY TAX GROWTH, WHICH IS OUR BIGGEST TAX BASE.

SO WE FEEL WE HAVE GOOD REVENUE GROWTH BUILT INTO THE MODEL.

AND THESE ARE STILL THE SIZE AND SHAPE OF THE PROBLEM THAT WE HAVE.

AND I WANT TO JUST REITERATE THIS IS AS A SNAPSHOT IN TIME, AND THIS WILL BE CONTINUED IN THE NEXT SEVERAL SLIDES.

THIS IS IF WE DO NOTHING AND WE ALREADY HAVE DONE THINGS, AND WE'LL CONTINUE TO DO THINGS WITH THE AIM OF PRESENTING TO THIS BOARD PROPOSED BALANCED BUDGET.

SO WHAT'S SHIFTED? SO IN OUR FORECAST THAT I REFERENCED IN OUR ADOPTED BUDGET FOR THE 25/26 YEAR.

WE WERE PROJECTING 26/27 TO HAVE A, A GAP OF $7.4 MILLION THAT WE WERE WORRIED ABOUT TRYING TO SOLVE.

WE'RE NOW PROJECTING A REVISED GAP OF $23.2 MILLION.

OUR MOST SIGNIFICANT DELTA IN, IN THIS FORECAST IS REALLY UNDERSTANDING THE IMPACTS OF OUR INTENT TO HOLD UM, AND TO PROVIDE COMPENSATION TO OUR EMPLOYEES OVER A LONG PERIOD OF TIME.

COMMISERATE WITH WHAT OUR PEER AGENCIES ARE DOING AND REALIZING THE PRESSURES THAT OUR EMPLOYEES HAVE ON COST OF LIVING AND JUST COSTS IN GENERAL.

THIS BOARD HAS TRIED TO FIND THAT BALANCE, AND WHEN WE REVISE THOSE LONG-TERM ESTIMATES WE FOUND THAT COMBINED WITH GOOD NEWS, WE ARE DOING, WE'VE BEEN DOING MORE HIRING, WE HAVE LESS VACANCY RATES.

THE FINANCIAL IMPACT IS IN THE PAST WE WERE ABLE TO RELY ON LARGER VACANCY RATES TO COUNT FOR MORE BUDGET SAVINGS.

SO THE COMBINATION OF THOSE REVISITING OUR CALCULATIONS OVER THE LONG TERM AND LOWER VACANCY ASSUMPTIONS HAVE CREATED THIS DELTA OF $22.1 MILLION THAT ADDED TO OUR FORECAST.

WHAT I WANT TO REALLY CALL OUT THERE IS THAT $25.6 MILLION BAR THERE.

THAT'S HR1 AND THAT'S OUR CURRENT LATEST ESTIMATES, LESS THAN WHAT WE THOUGHT IN DECEMBER, BUT STILL A SIZABLE AMOUNT THAT BAKING INTO OUR FORECAST WOULD PUT US AT REAL JEOPARDY IF WE CAN'T SOLVE FOR IT.

RIGHT NOW, I'M LOOKING AT MY...

OUR DEPARTMENTS HEALTH AND HUMAN SERVICE DIRECTORS, THEY ARE FACED WITH THE CHALLENGE OF SOLVING FOR THAT $25.6 MILLION AS THEY'RE DEVELOPING THEIR 26/27 BUDGET.

SO OUR PRESUMPTIONS IN THE FORECAST IS THAT HR1 WILL BE RESOLVED FROM A BUDGET DEVELOPMENT STANDPOINT AND ACTIONS WE ARE TAKING NOW WITH SOME REVENUE GROWTH WILL CULMINATE TO ABOUT $31.9 MILLION OF THINGS WE CAN CREDIBLY PROJECT FOR NEXT YEAR BASED ON JANUARY OF 2026.

SO RESULTING WITH A FORECAST OF $23.2 MILLION.

SAY IT ONCE, SAY IT TWICE, SAY THREE TIMES.

UM, OUR COSTS ARE GROWING FASTER THAN OUR REVENUE GROWTH.

SO THE CHART AT THE TOP IS TRENDING ON THE PERCENT OF ANNUAL GROWTH IN RED OF OUR EXPENSES AS COMPARED TO THE PERCENT OF ANNUAL GROWTH OF OUR GENERAL FUND REVENUES IN GREEN.

IN THE FIRST FOUR YEARS OF OUR FORECAST, OUR COST GROWTH IS FAR OUTPACING THE MODELED REVENUE GROWTH AND THERE IS REVENUE GROWTH.

WHERE THIS BECOMES A PROBLEM, OF COURSE, IS THE BAR CHART DOWN BELOW, WHICH IS PROJECTING OUT OUR DEFICITS, OUR REVISED DEFICITS.

AND THIS IS A MOMENT OF TIME WHERE IF YOU GO BACK TO OUR ADOPT BUDGET FOR 25/26, YOU WOULD SEE '29 '30, '30, '31, '32, '33 START SEEING GREEN BARS IN THOSE YEARS IN OUR PRIOR FORECAST, THE CUMULATIVE EFFECT OF LESS VACANCIES OF THE, THE IMPACT OF MULTI-YEAR AGREEMENTS HAS REALLY SHIFTED OUR ECONOMIC OUTLOOK IN OUR FORECAST, WHEREAS $67 MILLION DEFICIT IS PERSISTENT THROUGHOUT THE REMAINDER OF THIS FORECAST.

AGAIN, THIS IS IF WE DO NOTHING AND WE DO THINGS, WE WILL DO THINGS.

WE ARE DOING THINGS NOW, SO I'LL, I'LL LET ELISSA AND NICOLE REALLY KIND OF TALK TO THAT AS WE, AS WE WRAP THIS UP.

WHAT I WANT TO REITERATE HERE IS THE ELEMENTS THAT WE GO INTO AT FORECAST.

WE BEGIN WITH A KIND OF A REAR VIEW MIRROR LOOK OF WHAT'S BEEN GOING ON IN OUR ACTUAL RESULTS EVERY YEAR DATING BACK TO 2019, 2020.

WE LOOK THROUGH SIX YEARS OF ACTUAL RESULTS, WE LOOK FOR THE TREND DATA INDICATING THE DIRECTION WE'RE GOING WE LOOK AT THIS CURRENT YEAR AND THE DIRECTION IT'S GOING WITH FIRST SIX MONTHS OF LIVE DATA AND THEN COMPARE THAT FIRST SIX MONTHS TO EVERY PRIOR SIX MONTH PERIOD IN THE PRIOR SIX YEARS.

WE, WE CAN KIND OF ESTIMATE HISTORICALLY THE TREND LINE OF THOSE FIRST SIX MONTHS WHERE IT RESULTS OUT.

WE THEN COMPARE THAT TO BUDGET.

WE THEN COMPARE THAT TO STATE NATIONAL DATA.

WE COMPARE THAT TO LOCAL DATA.

WE GET INFORMATION FROM OUR PARTNERS WHO HELP US MODEL SALES TAX AND GET INFORMATION FOR OUR ACCESSORY RECORDER ON PROPERTY TAX.

WE TAKE ALL THOSE DATA POINTS AND WE VALIDATE THAT AGAINST OUR FORECAST.

AND THAT'S WHAT WE END UP GIVING IS, IS, IS A REALLY WHAT WE BELIEVE TO BE CONFIDENT GENERAL FUND WIDE FORECAST

[03:15:01]

AGAIN, THIS IS A, A SNAPSHOT IN TIME, UM, THAT REALLY HELPS US SHAPE WHAT WE HAVE TO DO GOING FORWARD WITH THE RISK THAT IF WE ARE UNABLE TO SOLVE FOR HR1, IF WE ARE UNABLE TO SOLVE FOR THE $25 MILLION AT RISK THAT FORECAST WILL GET WORSE.

THAT'S $67 MILLION PLUS 25 WE'RE NORTH OF A HUNDRED MILLION DOLLARS.

SO THAT'S OUR CONCERN.

THAT'S WHAT WE'RE WORKING TOWARDS NOW, AND THAT'S WHY THIS MOMENT IS BIGGER THAN THESE TYPICAL MID-YEARS HAVE BEEN IN THE PAST.

AND WITH THAT I'LL PASS IT ON TO ELISSA.

- NO.

- OH ME.

I HAD A, I HAD A NOTE TO MYSELF TO PASS IT ON.

AND THIS IS ME.

SORRY.

SO, THE RISK WE ARE FACING MOVING FORWARD INCLUDE FEDERAL, STATE, AND OUR OWN LOCAL ECONOMIC.

THE IMPACTS FROM HR1 HAVE, AS THIS BOARD HAS BEEN FREQUENTLY UPDATED LAST DECEMBER 16TH WE HAD A PRELIMINARY ESTIMATE OF AN EXPOSURE UP TO $50 MILLION.

WE'VE REFINED THOSE ESTIMATES AND WE'RE NOW LOOKING AT $25 MILLION CREDIBLE IMPACT FROM HR1.

IF YOU LOOK IN THE STAFF REPORT, YOU'LL SEE SOME, SOME VARIATION OF SOME OF OUR COSTS IN HSC OR SOME OF OUR RISKS IN HS HUMAN SERVICES DEPARTMENTS HAVE GONE DOWN, BUT OUR RISKS CALFRESH HAVE GONE UP.

SO WE'VE HAD SOME, SOME WINNERS IN OUR EVALUATION AND SOME LOSERS STILL WITH A PERSISTENT $25 MILLION AT RISK FROM THE IMPACTS OF HR1 AS NICOLE MENTIONED BECAUSE OF THE STATE'S ACTIONS TO SHIFT THEIR RESPONSIBILITIES DOWN TO US, WE NOW BEAR THE BRUNT OF THOSE COSTS AND THE GOVERNOR'S BUDGET FAILED TO INCLUDE ANY FUNDING TO MEET THE MANDATES THAT THEY REQUIRE OF US.

FROM AN ECONOMIC STANDPOINT OR I'LL STAY IN THE STATE LANE FOR A LITTLE BIT BECAUSE I, WE, WE DO WANT TO TALK ABOUT, AND WE, WE'VE TALKED ABOUT IN THE PAST PROPERTY TAX AND SALES TAX ALLOCATION WHERE OUR PROPERTY TAX WE'RE GETTING 13 CENTS ON THE DOLLAR 13.40 CENTS.

AND WE'VE DOCUMENTED THAT AND WE'VE COMPARED IT WHERE WE SIT AMONGST THE, ALL OF OUR OTHER COUNTY PEERS AND WE'RE NEAR THE BOTTOM OF THAT CHART.

AND WE, WE, WE ARE SYSTEMATICALLY DISADVANTAGED FROM THE ALLOCATION MODEL ON PROPERTY TAX.

WE ARE ALSO SYSTEMATICALLY DISADVANTAGED IN HOW SALES TAX IS ALLOCATED, AND WE'VE BEEN ABLE TO ESTIMATE OVER THE LAST SIX MONTHS CREDIBLY THAT THERE'S ABOUT $10 MILLION ANNUALLY THAT'S LOST OUT OF OUR GENERAL FUND.

$10 MILLION OF SALES TAX THAT OUR RESIDENTS IN THE UNINCORPORATED AREA ARE BUYING AND PAYING THROUGH ONLINE ACQUISITIONS ARE NOT COMING BACK TO US BECAUSE OF THE STATE'S ALLOCATION MODEL BASED ON THE 1950S WHEN DELIVERY TRUCKS WOULD SHOW UP AND DROP THINGS AT, AT COMMERCIAL DOORSTEPS.

THOSE MODELS ARE OUTDATED.

THE STATE HAS THE DATA ABOUT WHERE THE PACKAGE IS BEING DELIVERED.

THE STATE HAS THE DATA ABOUT WHERE IT'S BEING PURCHASED, BUT THE ALLOCATION MODELS HAVEN'T CAUGHT UP WITH THAT.

SO DEPENDING ON THE VARIOUS SCENARIOS, WHETHER IT'S, UM, AN ONLINE PURCHASE FROM AN OUT-OF-STATE OR IN-STATE UM, VENDOR WE, WE END UP LOSING BECAUSE WE DON'T HAVE DISTRIBUTION CENTERS IN OUR COUNTY AND BECAUSE THE COUNTY IS PROPORTIONALLY HAS LESS BRICK AND MORTAR RETAIL STORES, BECAUSE COUNTIES ARE TYPICALLY NOT THE ECONOMIC ENGINES OF A REGION, IT'S THE CITIES.

SO BECAUSE OF THOSE STRUCTURAL DEFICITS, THE STATE ENDS UP ALLOCATING SALES TAX BASED ON OUR PROPORTIONALITY OF SALES TAX THAT WE GENERATE IN OUR BRICK AND MORTAR.

AND SO THAT HURTS US ALL ACROSS THE BOARD.

AND SO THIS IS OUR PROBLEM WITH OUR FLAWED ALLOCATION MODELS, BOTH ON PROPERTY TAX AND SALES TAX.

AND SALES TAX IS CLOSER TO CONSIDERING REFORMS, PROPERTY TAX IS THE LONGER CHALLENGE.

I'LL SAY FROM AN ECONOMIC STANDPOINT WE JUST WANNA HIGHLIGHT THINGS WE ALREADY KNOW.

AS I MENTIONED WITH OUR, THE WAY OUR COUNTY, TYPICAL COUNTIES ARE PER-, ARE DESIGNED.

SMALL POPULATION CENTERS ALL THE COMMERCIAL, ALL THE RETAIL, ALL THE ECONOMICS IS TYPICALLY, TYPICALLY IN THE CITIES.

IN OUR COUNTY, HALF THE POPULATION ABNORMALLY AS COMPARED TO OUR PEERS LIVES IN THE UNINCORPORATED COUNTY.

HALF THE POPULATION, OUR PEERS ARE LIKE 20%.

SOME, SOME COUNTIES HAVE ARE AS LOW AS 4%.

SO WITH THAT WE DO NOT HAVE THE COMMISERATE CENTERS OF ECONOMIC THAT WOULD YOU MIGHT EXPECT WITH HAVING TO HAVE THE POPULATION THERE.

AND PART OF THAT IS JUST GEOLOGY, WHERE OUR, WHERE OURS ARE, WHERE'S THE PREDOMINANT AMOUNT OF OUR LAND AND WHERE DO PEOPLE LIVE IN THE UNINCORPORATED AREAS IT'S IN PLACES WHERE YOU'RE NOT GONNA DEVELOP RETAIL CENTERS IN THE MOUNTAINS, IN THE FOOTHILLS, UM, OR IN THE FARMLANDS.

SO WE HAVE SOME ECONOMIC LIMITATIONS THAT CAUSE US THE INABILITY TO, TO QUICKLY TURN ON, LET'S DEVELOP THIS PROJECT.

LET'S, LET'S BRING A WAREHOUSE HERE.

[03:20:01]

SO WE HAVE OUR OWN CHALLENGES IN THAT SPACE.

I AM GONNA MOVE ON TO A LITTLE BIT ABOUT HR1.

UM, AS THIS BOARD KNOWS WE CONTINUE TO BE CONCERNED WITH THE UNPRECEDENTED LEVEL OF THE SHIFT OF FEDERAL POLICY CHANGE QUICKLY AND FREQUENTLY.

THAT'S BOTH AT A POLICY LEVEL AND AT A STAFF LEVEL.

I THINK OUR PEERS IN HEALTH SERVICES AGENCY AND HUMAN SERVICES DEPARTMENT AND OTHER COUNTY DEPARTMENTS CAN TALK TO THE CHANGE IN TONE THAT WE'RE GETTING, NOT ONLY AT THE STAFF LEVEL AS WELL TO MATCH THE CONGRESSIONAL, UH, PRESIDENTIAL OFFICE.

SO WE'RE STARTING TO SEE A LOT OF, UM, UNFORTUNATE OUTCOMES OF THAT AND RELATING TO THE IMPACTS OF HR1 AND THE CHANGES THAT ARE FLOWING DOWNHILL TO US.

BECAUSE THE STATE HAS SHIFTED THEIR RESPONSIBILITY TO THIS COUNTY AND ALL COUNTIES, WE BEAR THE BRUNT OF MANDATED SERVICES OR RESPONDING TO NEW FEDERAL REQUIREMENTS TO ELEVATE OUR AMOUNT OF WORK TO KEEP PEOPLE ON MEDI-CAL, FOR EXAMPLE.

THIS IS PROVEN TO BE A, A SYSTEMATICALLY DISADVANTAGED MOMENT FOR COUNTIES WHERE WE HAVE THE MANDATES.

THE STATE'S GOVERNOR RELEASED IN JANUARY DID NOT PROVIDE THE FUNDING TO CONTINUE THOSE MANDATES, PUTTING THE ONUS ON COUNTIES ACROSS THE STATE TO BACKFILL THAT THROUGH CUTS OR OTHER, OR OTHER ACTIONS.

THIS IS A MOMENT WHERE POLITICALLY, I THINK NICOLE, NICOLE CORRECTLY, YOU KNOW, FRAMED THIS MOMENT THAT WE'RE IN.

UM, I WOULD FINISH WITH, WE ARE DELEGATING AND ASKING THE HUMAN SERVICES DEPARTMENT, HEALTH SERVICE AGENCY TO PARTNER WITH US IN THIS MOMENT AND HELP US UNDERSTAND WHAT ARE THE IMPACTS OF ABSORBING THIS LEVEL OF, OF A REDUCTION OF THIS FUNDING INCREASE OR FUNDING DECREASE OR STAFFING INCREASE.

AND WE'LL BE COMMUNICATING THAT, UM, MORE CLEARLY IN OUR PROPOSED BUDGET.

AS A QUICK, UM, I'LL MAKE THIS QUICK.

WE, WE'VE, WE SPENT A LOT OF TIME IN OUR DISASTER RECOVERY PROCESS AND WE'VE HAD UNPRECEDENTED ACTIONS IN 2024 WHERE WE ISSUED NEARLY $90 MILLION IN DEBT.

NOT MANY COUNTIES HAVE HAD TO DO THAT.

WE ARE, WE STAND, YOU KNOW, VERY FEW WHO'VE DONE THAT, AND WE STILL HAVE $58 MILLION OF OUTSTANDING DEBT.

OUR, OUR, OUR CONCERN HERE IS BOTH CASH FLOW AND THAT THAT MUCH DEBT OF ACCOUNTS RECEIVABLE IS OUT OF OUT AT THE FEDERAL LEVEL, WAITING TO COME BACK TO OUR COMMUNITY.

7% OF OUR GENERAL FUND BY COMPARISON, AS WELL AS THE SHORT TERM IMPACT OF IF WE DON'T RECEIVE REIMBURSEMENTS AS WE BUILT OUR 2024 DISASTER BONDS, OUR DEBT SERVICE COSTS WILL GO UP.

WE EXPECTED TO RECEIVE $43 MILLION IN REIMBURSEMENTS IN THE FIRST THREE YEARS OF THOSE BONDS.

YEAR ONE, WE WERE ON TRACK, YEAR TWO WE'RE TREND-...

THIS CURRENT YEAR WE'RE TRENDING TO BE ON TRACK, BUT WE DON'T HAVE IT ALL IN YET, BUT WE'RE CONCERNED THAT IF THERE ARE DELAYS IN THAT, IN THOSE REIMBURSEMENTS, IT'LL SHIFT MORE BURDEN TO US AS OUR DEBT SERVICE COSTS WILL GO UP FROM 800,000 TO $2.6 MILLION TO UPWARDS OF $4 MILLION SO THERE'S UPWARD COST PRESSURE IN THE LONGEVITY OF INTEREST WE PAY, AS WELL AS THE ANNUAL DEBT SERVICE, AND THE FACT THAT WE DON'T HAVE THIS CASH IN OUR COMMUNITY TO BOLSTER UP OUR RESERVES OR STRENGTHEN OUR CASH BALANCES THAT CAN TURN INTO INVESTMENT EARNINGS.

SO THERE'S A LOT OF DATA POINTS IN HERE, BUT I'M JUST GIVING A QUICK UPDATE.

$58.4 MILLION STILL REMAINS OUTSTANDING LARGELY WITH FEMA $53 MILLION.

WE HAD TO ISSUE DEBT BECAUSE WE DIDN'T HAVE THE RESERVES, AS OUR PEERS DO IN TAPPING INTO, UM, THAT CASH FLOW TO IMMEDIATELY RESPOND TO RECOVERY PERIODS.

SO AS A WAVE EXAMPLE, WE'VE COMMUNICATED TO THIS BOARD 2.8 PAYROLL CYCLES WHEN WE DISTILL DOWN OUR RESERVES AND WE LOOK AT THE BOARD DIRECTOR RESERVES THAT EQUATE TO $45.3 MILLION THAT IMMEDIATELY AMOUNT OF RESERVES THAT AVAILABLE TO RESPOND TO ECONOMIC EVENTS, DISASTERS.

UM, THE BOARD CONTROLLED RESERVES THAT EQUATES TO 2.8 PAYROLL CYCLES.

THAT IS INSUFFICIENT TO LET US DIP INTO THAT AND, AND CREATE A RUNWAY.

OUR COUNTY PEERS ARE THINKING ABOUT WAYS THAT THEY CAN LEVERAGE THEIR RESERVES TO LENGTHEN THE HR1 IMPACT TIMING.

WE DON'T HAVE THAT SAME LEVEL OF FLEXIBILITY.

OUR RESERVES AT 12.5% ARE ALREADY BELOW OUR 15% POLICY LEVEL IF WE WERE TO FUND IT AT THE 15%, WE WE'RE SHORT $26 MILLION.

AND AS WE COMPARE TO OUR PEERS, THEIR AVERAGE FUNDING, IF WE WERE, IF WE WERE FULLY FUNDED AT 20, AT 15% WE'RE, WE'D STILL BE SHORT, A HUNDRED MILLION DOLLARS COMPARED TO THE, AMOUNT OF PERCENTAGE OF GENERAL FUND REVENUE THAT IS HELD IN OUR PEER AGENCY.

SO WE UNDERSTAND AND WISH WE HAD THIS CIRCUMSTANCE OF BEING ABLE TO TAP INTO THAT TO EXTEND OUR RUNWAY.

[03:25:01]

NOW I'LL TRANSITION OVER TO.

- I AM SO LUCKY I, I GET TO DO THE NEXT PART OF THIS PRESENTATION.

I... MARCUS HAD A SHORT STRAW IN TALKING ABOUT ALL THE VERY CHALLENGING RISKS THAT WE ARE DEALING WITH, SOME OF WHICH WE CAN INFLUENCE, SOME OF WHICH WE CANNOT.

BUT I'M GONNA TALK A LITTLE BIT MORE ABOUT THE PROACTIVE ACTIONS WE'VE ALREADY TAKEN AS WE RECOGNIZED THINGS WERE NOT AS WE THOUGHT.

SO FIRST AND FOREMOST, UH, WE DIDN'T WAIT FOR THIS REPORT TO START ACTING, UH, ALREADY WITH A EYE TOWARDS THE CHALLENGES WE SAW ON THE FEDERAL HORIZON IN NOVEMBER, THE CEO IMPLEMENTED COUNTYWIDE HIRING CONTROLS.

AND THAT REALLY WAS AROUND, I'LL JUST DESCRIBE IT FOR WHAT IT WAS, SLOWING DOWN HIRING.

AND WHAT THAT PROCESS ALLOWED US TO DO WAS, NUMBER ONE CHECK IN WITH OUR DEPARTMENTS AROUND HOW ARE THEY DOING IN MEETING THE SALARY SAVINGS THAT WE ASSUME IS PART OF HOW WE BALANCE THE BUDGET.

THERE'S... WE KNOW WE'RE ALWAYS GONNA HAVE VACANCIES SO WE KNOW THAT THAT BIG NUMBER IS WE'RE NOT GONNA SPEND THE WHOLE THING.

BUT WE ACTUALLY HAVE TO MONITOR TO MAKE SURE WE MEET THAT.

SO THAT'S ONE OF THE REASONS FOR THE HIRING, UH, THE HIRING CONTROLS.

IT ALSO GAVE US THE OPPORTUNITY TO TALK WITH OUR DEPARTMENTS ABOUT THE CRITICALITY, THE ESSENTIALNESS OF THAT HIRE AT THIS POINT IN TIME.

AND I WILL SAY, MOST, BUT NOT ALL, OF THEIR REQUESTS WERE APPROVED.

SO THIS, THIS ABSOLUTELY SLOWED RECRUITMENTS DOWN.

AND I KNOW THAT'S FRUSTRATING FROM AN OPERATING STANDPOINT.

BUT IT ALSO ALLOWED US TO HAVE THE OPPORTUNITY TO SEE, ARE WE MEETING OUR FUNDAMENTAL ASSUMPTIONS AROUND VACANCY RATES? AND DO WE NEED TO FILL THAT POSITION, GIVEN WHAT WE KNOW IS ON THE HORIZON? SO THAT'S NUMBER ONE.

NUMBER TWO IS REALLY AROUND THIS LABOR MODELING REFINEMENT EXERCISE.

OUR STAFF EVALUATED AND REFINED OUR LABOR COST MODELING TO REALLY IMPROVE ACCURACY.

AS YOU ALL KNOW, WE HAVE IMPLEMENTED NEW LABOR AGREEMENTS WITH EQUITY ADJUSTMENTS AND COST OF LIVING, UH, CONSIDERATIONS ACROSS ALL DEPARTMENTS, OR MOST DEPARTMENTS.

WE STILL HAVE FOUR OUTSTANDING LABOR AGREEMENTS THAT NEED TO COME, COME TO CLOSE IN THIS CYCLE OF NEGOTIATIONS.

THESE EMPLOYMENT CONTRACTS HAVE IMPROVED CONDITIONS FOR OUR WORKFORCE AND ARE IN LINE WITH BASE PAY INCREASES BY OUR NEARBY AND COMPETING COUNTIES.

WE KNOW THAT WE HAVE STAFF FREQUENTLY GET POACHED BY OTHER COUNTIES.

WE TRAIN THEM UP HERE.

AND THEN FOLKS WHO HAVE MAYBE BETTER SALARY, OR I'M SORRY, SALES TAX ALLOCATIONS AND PROPERTY TAX ALLOCATIONS CAN VERY READILY LURE THEM AWAY.

AND WE RECOGNIZE THIS REPRESENTS A SUBSTANTIAL COMMITMENT TO ADDRESS WELL-FOUNDED ISSUES FACING OUR WORKFORCE.

THIS IS WE WERE KIND OF IN A CATCH-22.

THESE ARE REAL ISSUES THAT OUR EMPLOYEES EXPERIENCE LIVING IN THE VERY EXPENSIVE, UM, COMMUNITY WE LIVE IN.

BUT BY DOING THAT, WE, WE'RE ABLE TO IDENTIFY THAT THIS SERIES OF IMPLEMENTATION OF OVERLAPPING CONTRACTS AND THE REDUCED VACANCY SAVINGS THAT WE'D SEEN AS WE FILLED VACANCIES REVEALED A LONG-TERM COST TRAJECTORY THAT WAS QUITE A BIT STEEPER THAN WHAT WE WERE ASSUMING.

AND THAT IS WHY YOU'RE SEEING A LOCALIZED STRUCTURAL DEFICIT OF $23 MILLION MORE IN ADDITION TO THE FEDERAL IMPACTS THAT WE'VE ADOPTED.

SO WHILE THAT MIGHT NOT GIVE YOU A LOT OF, UM, IT'S NOT CONSOLATION, BUT IT IS AN IMPROVEMENT IN HOW WE ARE APPROACHING FISCAL MANAGEMENT.

SO OUR EYES ARE WIDE OPEN MOVING FORWARD.

WE, UH, WE ARE WORKING VERY, VERY CLOSELY WITH OUR HR DEPARTMENT TO MAKE SURE WE ARE IN TIGHT COMMUNICATION AND COORDINATION AS THEY GO THROUGH LABOR-COSTING SCENARIOS AND THAT THOSE ARE BETTER INTEGRATED INTO OUR FORECASTING WORK.

[03:30:02]

OH, I'M SORRY, NOT YET.

THE THIRD ITEM IN TERMS OF CURRENT ACTIONS IS VERY, VERY CURRENT LIKE YESTERDAY.

WE HAD BEEN EVALUATING MOVING TO AN EVEN STRICTER APPROACH TO COST CONTROLS IN THE LAST TWO WEEKS.

AND YESTERDAY, UH, CEO COBURN SENT THAT OUT TO OUR DEPARTMENT HEADS WHICH IS WE HAVE IMPLEMENTED A, A HIRING AND TRAVEL FREEZE EFFECTIVE TODAY.

UH, NOW, I WANT TO SAY THIS.

WE DO UNDERSTAND THAT THERE ARE HIRING AND TRAVEL REALITIES THAT OUR DEPARTMENTS WILL NEED TO CONTINUE.

BUT THIS HAS MOVED THE, THE COST CONTAINMENT STRATEGY TO YET A WHOLE NOTHER LEVEL IN TERMS OF REALLY TRYING TO CREATE SAVINGS IN THIS FISCAL YEAR THAT ALLOW US TO END THE YEAR POSITIVELY.

THAT IS OUR GOAL.

AND THAT'S A HARDSHIP FOR ALL OPERATING DEPARTMENTS.

SO IT IS A HARDSHIP FOR ALL OPERATING DEPARTMENTS, BUT WE HAVE TO IMPLEMENT THESE TYPES OF ACTIONS NOW TO HELP OURSELVES AS WE FINISH THE FISCAL YEAR AND MOVE TO THE NEXT FISCAL YEAR.

UM, THE LAST PART I WANT TO TALK ABOUT IS AS PART OF THE FISCAL YEAR '27 BUDGET DEVELOPMENT, THE CEO HAS BEEN PROACTIVE IN PROVIDING DEPARTMENTS DIRECTIONS THAT THEY WERE GOING TO HAVE TO DO SOME VERY DIFFICULT, UM, BUDGETING WORK FOR FISCAL YEAR '27 BASED ON WHAT WE UNDERSTOOD OUR DEFICITS WOULD LOOK LIKE.

AND THAT THEY WOULD HAVE TO ADDRESS THESE LARGE PERSONNEL AND OTHER COST INCREASES AND REVENUE LOSSES THROUGH CRITICAL EXAMINATION OF THEIR PROGRAMS AND THEIR EXPENDITURES AND MAKE HARD DECISIONS.

UH, I WILL SAY A, A SMALL AMOUNT OF GENERAL FUND BEYOND WHICH WHAT DEPARTMENTS WERE ALLOCATED IN THE LAST FISCAL YEAR WAS INCLUDED IN THEIR BUDGET INSTRUCTIONS.

BUT, UH, MAKE NO MISTAKE, THEY ALL WERE FACING VERY DIFFICULT DECISIONS.

AND THAT'S WHERE WE STAND TODAY.

THAT THIS MOMENT WE HAVE SIGNIFICANT PRESSURES TO MAKE VERY CHALLENGING DECISIONS AROUND SERVICES AND STAFFING MOVING FORWARD.

SO I'M GOING TO GO TO THE NEXT SLIDE AND TALK ABOUT WHAT COMES NEXT.

DESPITE THESE CURRENT ACTIONS, AS I'VE MENTIONED WE, WE'LL HAVE TO DO MORE.

WE WILL HAVE VERY CHALLENGING CHOICES AROUND STAFFING AND SERVICE IMPLICATIONS IN THE NEXT BUDGET DEVELOPMENT CYCLE THAT WE ARE JUST STARTING.

UM, THESE CHOICES WILL CHALLENGE OUR UNDERLYING VALUES AND HIGHLIGHT TRADEOFFS AND REALLY HELP US.

WE WILL HAVE TO IDENTIFY WHAT IS MOST IMPORTANT IN SERVICE TO OUR COMMUNITY.

AND THAT'S WHAT IS GOING TO REALLY BRINGS US TO THIS QUESTION OF PRINCIPLES.

BEFORE I PASS IT BACK TO NICOLE, I WANT TO LIKE JUST GIVE A LITTLE BIT OF A PREVIEW OF THE WORK AHEAD IN THE NEXT THREE MONTHS.

ALL RIGHT, SO THEN, SO JUST TO SIT REMIND EVERYONE WHAT HAPPENS NOW AFTER THIS MID-YEAR REPORT IS, AND AS WE'VE SAID, THIS IS A LITTLE BIT DIFFERENT FROM MANY OF THE LAST YEARS.

IT'S GOING TO REQUIRE MORE FROM ALL OF US.

DEPARTMENTS ARE DOING VERY CHALLENGING WORK, HAVE SUBMITTED THEIR PROPOSALS TO BALANCE TO THE CEO.

AND NOW WE TAKE THAT ALONG WITH PRIORITIES AND TRADEOFFS AND CONVERSATIONS WE'VE HAD WITH ALL OF YOU TO EVALUATE THOSE PROPOSALS AND DETERMINE WHAT TO RECOMMEND FORWARD TO YOU, UH, IN EARLY MAY.

SO THE CONVERSATIONS THAT YOU START TODAY AND CONTINUE AT THE NEXT MEETING AROUND PRINCIPLES, PRIORITIES AND TRADEOFFS WILL INFORM THE CEO IN WORKING THROUGH THOSE PROPOSALS THAT ARE ON THE TABLE RIGHT NOW.

I DO WANT TO REMIND FOLKS AGAIN THIS IS A LITTLE BIT OF A DIFFERENT APPROACH.

WE DO HAVE OUR SECOND COMMUNITY CONVENING WITH OUR COMMUNITY PARTNERS AROUND FEDERAL IMPACTS THIS FRIDAY.

SO THERE IS NO QUESTION IN OUR MINDS, THIS WILL COME UP AT THAT CONVERSATION AS WELL.

FROM THERE, WE WILL BRING YOU A BALANCED BUDGET IN EARLY MAY.

[03:35:03]

SO AS DIFFICULT AS ALL, AS THE CHOICES IN FRONT OF US ARE, WE HAVE TIME FOR CONVERSATIONS.

AND WE HAVE TIME TO START THINKING ABOUT NOT JUST, UM, PROGRAM REDUCTIONS, BUT WHAT ARE THOSE STRUCTURAL CHANGES? THESE ARE STRUCTURAL DEFICITS.

YOU NEED STRUCTURAL CHANGES THAT WE NEED TO IMPLEMENT EITHER ON THE SHORT, MEDIUM, OR LONG TERM.

ALL RIGHT, SO WITH THAT, I'M GOING TO PASS IT BACK TO CEO COBURN TO TALK ABOUT PRINCIPLES AND WE'LL GO ON FROM THERE.

- THANK YOU.

SO AS I MENTIONED IN THE BEGINNING, UM, WE ARE PRESENTING TO YOU SOME OF THE FOUNDATIONAL PRINCIPLES THAT WE'D LIKE TO FOCUS OUR ATTENTION AROUND IN DEVELOPING THE BUDGET FOR NEXT YEAR.

UM, OUR ADOPTED FINAL BUDGET FOR THE COUNTY INCLUDES A, A LONGER LIST OF PRINCIPLES WHICH WE INCLUDED AS ATTACHMENT D IN THE BOARD ITEM.

BUT WE THOUGHT IT WOULD BE USEFUL TO REALLY, UM, PICK THOSE THAT WE THINK MIGHT HELP GUIDE US AS WE'RE FACING THESE TRADEOFFS AND PRIORITY DECISIONS.

UM, SO WITH THAT IN MIND, UH, THE FIRST ONE HAS TO DO WITH MAINTAINING OUR LEGALLY REQUIRED AND REVENUE GENERATING SERVICES AND STAFFING, UH, BECAUSE WE ARE THE SAFETY NET FOR THE COMMUNITY AND ARE RESPONSIBLE FOR DELIVERING THOSE FEDERAL AND STATE MANDATED PROGRAMS. UM, THIS IS SOMETHING THAT WE NEED TO BE MINDFUL OF IN TERMS OF THE SERVICES THAT WE'RE OFFERING TO THE COMMUNITY.

UM, THE SECOND HAS TO DO WITH TAKING INTO CONSIDERATION BUDGET IMPACTS IN A WAY THAT BALANCE REDUCTIONS TO COUNTY DEPARTMENTS AND COMMUNITY ORGANIZATIONS THAT PROVIDE ESSENTIAL SERVICES.

SO TRYING TO, TO THE EXTENT WE CAN, BALANCE THE IMPACTS ACROSS THE WHOLE COUNTY SINCE THERE ARE SO MANY ORGANIZATIONS THAT ARE DOING THE GOOD WORK THAT ARE ALSO DELIVERING THE, THE HEALTH AND SAFETY NET SERVICES THAT ARE AT RISK OF BEING IMPACTED.

UM, THIRDLY, UM, IDENTIFYING STRATEGIES FOR ADDRESSING WORKLOAD AND/OR COST SHIFTS THAT, UM, DO NOT DEPEND ON GENERAL FUND SUPPORT.

SO WHAT ARE THOSE STRATEGIES THAT WOULD ALLOW US TO ACCOMPLISH WORK OR PIVOT OUR WORK IN WAYS TO, UM, DEAL WITH THESE REDUCTIONS.

AND THEN THE LAST IS CREATING THAT RESILIENCY FOR OUR BUDGET AND THAT FISCAL CAPACITY TO BE ABLE TO CONTINUE OUR SERVICES INTO THE NEXT FISCAL YEAR AND BEYOND.

UM, SO THIS, THIS IS THE FIRST TIME, AS PART OF THIS PACKET, YOU'RE, YOU'RE KIND OF THINKING ABOUT THIS MORE.

BUT IN TERMS OF WHAT THAT MIGHT LOOK LIKE AS WE MOVE FORWARD WITH THESE PRINCIPLES OR OTHER THINGS THAT YOU MIGHT BE BRINGING TO US.

UM, IF WE'RE TALKING ABOUT THE WORKLOAD AND THE COST SHIFTS FOR EXAMPLE, YOU KNOW, THAT MAY BE LOOK LIKE US ENTERTAINING REORGANIZATIONS OR CONSOLIDATIONS.

UM, SO, YOU KNOW, THAT'S, THAT'S ONE THING THAT'S ON OUR MINDS.

UM, IT MAY ALSO LOOK LIKE PIVOTING WORK FROM THINGS THAT WERE GENERAL FUND SUPPORTED TO THINGS THAT COULD BE FUNDED BY OTHER SOURCES OR PROGRAMS THAT, THAT GENERAL FUND DOESN'T NECESSARILY HAVE ANYTHING TO DO WITH.

UM, THE, THE RESILIENCY PIECE I THINK MOSTLY HAS TO DO WITH TRYING TO BUILD BACK OUR RESERVES AND BUILD OUR LONG-TERM REVENUE OUTLOOK.

SO WE'LL BE CONSIDERING, YOU KNOW, WHAT'S ON THE HORIZON FOR THE COUNTY'S REVENUES AND HOW DO WE BRING MORE MONEY TO THE COUNTY TO SUSTAIN OUR SERVICES AND BUILD THOSE RESERVES.

SO THAT, THOSE ARE JUST A COUPLE OF THE EXAMPLES, UM, AS YOU'RE STARTING TO THINK ABOUT THIS.

AND WE'LL COME BACK AT THE MARCH 10TH MEETING TO TAKE A DEEPER DIVE ON THESE PRINCIPLES AND TALK TO YOU FURTHER AND GET YOUR FEEDBACK UNLESS THERE'S ANYTHING YOU WANT TO PROVIDE US TODAY.

BUT IF YOU GO TO THE NEXT SLIDE, UM, I WANT TO TALK ABOUT THE MULTI-YEAR STRATEGIES THAT WE HAVE IN MIND AS WE'RE THINKING ABOUT THE BUDGET AND HOW TO ADDRESS

[03:40:01]

SO YOU ALREADY HEARD ELISSA MENTION THE HIRING AND TRAVEL FREEZE THAT WE PUT INTO EFFECT THIS WEEK.

UM, WE ARE WORKING ON THE DIFFERENT OPTIONS AND SCENARIOS FOR THE PROPOSED BUDGET FOR NEXT YEAR, WHICH, YOU KNOW, WILL, COULD, WILL LIKELY ENTERTAIN VARIOUS SERVICE AND STAFFING REDUCTIONS.

WE'RE ALSO LOOKING AT WHAT DEFERRED CAPITAL WE MIGHT, UM, DO.

SO RATHER THAN INVEST WHICH WE KNOW HAS HURT US IN THE PAST IN TERMS OF, UM, RISKS TO COUNTY INFRASTRUCTURE AND FACILITIES.

BUT WE'LL LOOK AT WHAT'S ON THE TABLE, AND IF THERE ARE THINGS THAT MAKE SENSE IN TERMS OF DEFERRING.

THEN MEDIUM TERM, UM, THE, I THINK ONE OF THE MOST CRITICAL COMPONENTS OF THIS IS REALLY THAT STATE ADVOCACY PIECE WITH NEEDING TO PUSH THE STATE VERY HARD ON TRYING TO GET US FUNDING TO HELP WITH OUR FEDERAL AND STATE MANDATES.

UM, IF THE COUNTIES, AND NOT JUST US, IF COUNTIES ARE LEFT HOLDING THE IMPACTS OF WHAT'S HAPPENING, THERE'S GONNA BE DRAMATIC EFFECTS ACROSS, NOT ONLY OUR COUNTY BUT THE WHOLE STATE.

SO IT'S REALLY, YOU KNOW, UP TO THE STATE TO HELP US IN MEETING THOSE FEDERAL AND STATE MANDATES.

AND, UM, I HAD MENTIONED RESTRUCTURINGS, WHICH I KNOW THERE HAVE BEEN SOME THAT HAVE ALREADY BEEN, UM, DIRECTED BY THE BOARD FOR STAFF TO LOOK AT AND SOME OF THOSE WILL TAKE A LITTLE BIT OF TIME.

BUT WE'RE THINKING THROUGH WHAT MIGHT BE POSSIBLE SOONER.

REVENUE ENHANCEMENTS, WHICH I ALREADY MENTIONED, YOU KNOW, IF THERE'S ANYTHING ELSE WE CAN BRING TO HELP SUPPORT COUNTY SERVICES AND THE FUNDING THAT IS AT STAKE, UM, AND THAT WILL BE DISAPPEARING FROM OUR BUDGETS.

UM, SALES TAX REFORM THAT MARCUS HAD MENTIONED.

UM, YOU HEARD ABOUT ALL THE MONEY LEAVING OUR COUNTY.

THE CITY, THE LEAGUE OF CITIES HAS BEEN WORKING ON THIS FOR QUITE SOME TIME.

THEY HAVE ACTUALLY A PROPOSAL THAT SOME CITIES REALLY WANNA TRY TO PUSH FORWARD AND THAT I THINK WE'RE ON BOARD WITH.

BUT THE PROBLEM IS THERE'S ONLY ONE POOL OF MONEY SO THERE ARE WINNERS AND LOSERS.

AND SO A LOT OF CITIES WHO WOULD LOSE, STAND TO LOSE, YOU KNOW, AREN'T HAPPY WITH THAT.

BUT TO THE EXTENT WE CAN TRY TO PUSH THAT EFFORT FORWARD, UM, WOULD BE GOOD FOR US.

AND THEN LONG-TERM, YOU KNOW, AGAIN, LOOKING AT OUR REVENUES AND OUR RESERVES AND TRYING TO BUILD THOSE UP.

UM, TRYING TO ADDRESS THE DEFERRED MAINTENANCE.

WE WILL, THE GOOD NEWS IS THAT THROUGH PENSION REFORM, IN THE NEXT DECADE, WE SHOULD START TO SEE SOME OF OUR COSTS STARTING TO GO DOWN.

AND SO THAT IS GOING TO HELP ALLEVIATE OUR RISING COSTS FOR OTHER SALARY AND BENEFITS AND, YOU KNOW, CONTRACTS OR WHEREVER ELSE WE'RE SEEING INCREASES.

SO THAT PENSION REFORM IS IS REALLY GONNA HELP US OUT.

UM, LONGER TERM IS ADDRESSING OUR PROPERTY TAX BASE AND TRYING TO, UH, YOU KNOW, COME UP WITH AN IDEA TO REFORM THAT BECAUSE THAT IS WHERE WE ONLY GET 13.5 CENTS ON A DOLLAR AS I KNOW WE'VE TALKED ABOUT MANY TIMES AND TRYING TO COME UP WITH, UM, SOME SORT OF METHODOLOGY OR APPROACH TO CHANGING THAT.

THAT WOULD BE APPETIZING TO PEOPLE TO TRY TO GET THAT OVER THE FINISH LINE IS CRITICAL.

AND THEN JUST ADDRESSING THE DISASTER COSTS AND FINANCING AND FIGURING OUT THROUGH FEMA REFORM AND JUST EVERYTHING ELSE GOING ON RELATED TO THAT.

HOW DO WE GET MONEY IN THE DOOR MORE QUICKLY TO COVER OUR COSTS SO THAT WE'RE NOT LEFT HOLDING THE BAG ON THAT UM, IS VERY IMPORTANT.

SO THIS IS A CRITICAL MOMENT.

UM, YOU KNOW, WE'RE, WE'RE UP FOR THE CHALLENGE.

YOU KNOW, THIS IS GONNA INVOLVE BOTH, YOU KNOW, AS YOU HEARD, SHORT-TERM, MEDIUM-TERM AND LONG-TERM SOLUTIONS.

BUT, YOU KNOW, WE HAVE DONE THIS BEFORE.

WE'VE, WE'VE GOTTEN THROUGH DIFFICULT TIMES, THE GREAT RECESSION THE, UM, FINANCIAL HOUSING COLLAPSE, COVID-19.

WE CAN FIGURE THIS OUT AND, UM, GET THROUGH THIS PERIOD OF TIME AND COME OUT STRONGER ON THE OTHER SIDE.

SO WITH THAT, UM, THE LAST SLIDE IS JUST OUR RECOMMENDED ACTIONS UH, THEY...

LIKE I MENTIONED IN THE BEGINNING, UM, WE WOULD LIKE YOU TO APPROVE ALL OF THEM WITH THE EXCEPTION OF NUMBER TWO, WHICH WE'LL PUT BACK ON THE AGENDA ON OUR NEXT MEETING TO HAVE A FURTHER DISCUSSION WITH YOU

[03:45:02]

SOME OF THE, WE HAVE A LOT OF RECOMMENDATIONS IN HERE THAT ARE VERY ADMINISTRATIVE IN TERMS OF REALIGNMENTS AND SHIFTING MONEY AROUND WITHIN OUR BUDGET AND ACCEPTING MONIES THAT ARE NEW TO US INTO THE BUDGET.

UM, AND OTHER THAN THAT, UM, WE'RE ASKING YOU TO SET THE PUBLIC HEARING DATES FOR THE BUDGET HEARINGS COMING UP IN JUNE.

UH, WE'RE HAPPY TO TAKE ANY QUESTIONS YOU HAVE OR ANSWER, UM, HAVE A DISCUSSION WITH YOU TODAY.

- THANK YOU SO MUCH FOR THAT REPORT.

I'M GONNA START BY SEEING IF MY COLLEAGUES HAVE QUESTIONS FOR THE STAFF, THEN I'LL GO TO PUBLIC COMMENT AND THEN I'LL BRING IT BACK FOR DISCUSSION AND DIRECTION.

WOULD ANYONE LIKE TO START WITH THEIR QUESTIONS? SOMETIMES I FEEL LIKE A TEACHER, EVERYBODY LOOKS DOWN, "DON'T CALL ON ME." ANYBODY? SURE, SUPERVISOR KOENIG.

- UM, ALL RIGHT, WELL, THANK YOU FOR A, A GOOD REPORT, IF NOT GOOD NEWS.

UM, MY FIRST QUESTION, UM, IS ABOUT, I GUESS IT'S RECOMMENDED ACTION EIGHT, UM, WHICH IS TO, TO, BASICALLY, DEFER A FEASIBILITY STUDY ON CREATING A UNIFIED HEALTH AND HUMAN SERVICES AGENCY.

AND I THINK THIS WAS ONE OF THE ACTIONS THAT CAME OUT OF, UH, THE LAST BUDGET CYCLE.

UM, YOU KNOW, MY UNDERSTANDING IS WE COULD BE FACING DOUBLE DIGIT LAYOFFS, UH, IN ONE OR BOTH OF THESE DEPARTMENTS.

IT SEEMS TO ME PRUDENT TO LOOK AT OPPORTUNITIES FOR SYNERGIES BEFORE THOSE HAPPEN.

UM, I MEAN, EVEN JUST THE WAY THIS IS PHRASED LIKE A FEASIBILITY STUDY.

I, I DON'T THINK THAT THE INTENTION WAS SAYING WE WANT THE TWO DEPARTMENTS NECESSARILY COMPLETELY COMBINED, RIGHT? I MEAN, WHERE ARE THEIR SYNERGIES? WHERE COULD... I MEAN, COULD THEY SHARE A CONTRACTING DEPARTMENT FOR EXAMPLE? UM, OR, YOU, YOU KNOW, OR ARE THERE OTHER POSITIONS THAT THEY COULD SHARE.

UM, IF ANYTHING, THIS TELLS ME, LIKE, JUST THE WAY THIS IS PHRASED, EXACTLY WHAT DOES NEED TO CHANGE IN OUR APPROACH TO THINGS, RIGHT? I MEAN, A FEASIBILITY STUDY, LIKE, WE DON'T NEED A 30-PAGE DOCUMENT ON THIS, RIGHT? WE NEED THE DEPARTMENTS TO TALK TO EACH OTHER AND SAY, HEY, THESE ARE THE POSITIONS WE MIGHT HAVE TO LAY OFF, THESE ARE THE POSITIONS WE MIGHT HAVE TO LAY OFF, ARE THERE ANY WAY THAT WE CAN COMBINE THE, THE WORKLOAD HERE AND ACTUALLY SAVE SOME, SOME FOLKS.

UM, AND SO THAT'S WHERE I'D LIKE TO SEE A LITTLE BIT MORE ENGAGEMENT IN THIS BUDGET CYCLE, RATHER THAN PUTTING THIS OFF FOR, FOR A WHOLE ANOTHER YEAR.

UM, I MEAN, I GUESS THERE WASN'T EXACTLY A QUESTION IN THERE, BUT, I MEAN, DOES ANYONE WANT TO SPEAK TO THAT? - YEAH, AND I...

SO WE HAVE AN OBJECTIVE AROUND COMING OUT OF THE ORIGINAL DIRECTION, SUPERVISOR KOENIG, AROUND LOOKING AT CREATING A UNIFIED HEALTH AND HUMAN SERVICES AGENCY, WHICH IS A REALLY BIG DEAL.

UM, IF THAT WORK IS ASSOCIATED WITH THIS RECOMMENDATION, OBVIOUSLY WE'RE LOOKING AT ALL OPTIONS TO ACHIEVE EFFICIENCIES CREATE SYNERGIES, AND SO, UM, I THINK WE'LL BE DOING THAT, THAT LIGHTER TOUCH WORK THAT YOU'RE SPEAKING TO, BUT WE WANTED TO BE RESPONSIVE TO ALSO THE IDEA OF DOES IT MAKE SENSE TO HAVE A UNIFIED HEALTH AND HUMAN SERVICES AGENCY? AND THERE'S A LOT OF CONSIDERATIONS THERE, WE'RE PROBABLY GOING TO NEED SOME HELP TO LOOK AT THAT, THE FUNDING SOURCES ARE DIFFERENT, THE TYPES OF SERVICES ARE DIFFERENT, AND SO COMBINING THEM IS, IS, TAKES SOME ANALYSIS.

UM, AND SO THAT'S JUST WHAT WE'RE ASKING TO DEFER IS THAT BIGGER ANALYSIS FOR THE HUGE UNIFICATION, BUT OBVIOUSLY, SMALLER THINGS, EASIER WINS, WE'LL TAKE ANY OF THOSE INTO CONSIDERATION WITH THIS BUDGET.

- OKAY. GLAD, I'M GLAD TO HEAR THAT.

UM, I THINK THAT THAT WAS ALWAYS THE INTENTION IS TO LOOK AT INCREMENTAL OPTIONS FIRST, RATHER THAN NECESSARILY, UM, YOU KNOW, ANY, ANY IDEAL, UH, IDEALIZED FORM OF WHAT THE RESULT SHOULD BE.

UM, UH, CORE, AND YOU MENTIONED THE CONVENING WITH COMMUNITY PARTNERS THIS FRIDAY.

I MEAN, THERE'S ALSO THE, UH, VALUE OF BALANCED IMPACTS TO COUNTY DEPARTMENTS AND COMMUNITY PARTNERS.

I MEAN, CORE HAS BEEN THE ONE AREA WHERE WE, YOU KNOW, WE HAVE A LOT OF DISCRETION WHERE WE'RE NOT DEALING WITH STATE OR FEDERAL MANDATES.

UM, IT SEEMS TO ME THAT WE SHOULD AT LEAST, WELL, WARN, UH, CORE CONTRACTEES THAT, UM, THEY SHOULD DEVELOP A CONTINGENCY PLAN WHERE THEY DON'T GET CORE FUNDING THIS YEAR.

THAT'S NOT TO SAY THAT WE NECESSARILY WILL UM, CANCEL THE CONTRACTS I MEAN, OBVIOUSLY, THERE ARE SOME, SOME OF THOSE ARE PROVIDING ABSOLUTELY ESSENTIAL SERVICES, FOOD, SHELTER.

UM, BUT I THINK THAT WE SHOULD AT LEAST ASK FOLKS TO START DOING THAT NOW BECAUSE OTHERWISE, I MEAN, THIS, AND MAYBE THE QUESTION HERE IS MAYBE SOMEONE COULD REMIND ME WHEN THOSE CONTRACTS ARE DATED,

[03:50:02]

UM, WE ARE VERIFYING, RIGHT NOW WE'RE IN A MULTI-YEAR AGREEMENT AND SO, UM, BASED ON RECENT DIRECTION WE'RE TRYING TO FIGURE OUT IF THERE WERE TWO OR THREE-YEAR AGREEMENTS.

UM, FOR THOSE MULTI-YEAR, THE LAST TIME MOST RECENTLY WE LOOKED AT IT, AND THE BOARD MAY HAVE DECIDED TO SCALE BACK TO TWO YEARS.

AND SO, UM, BUT THEY'RE ON A YEAR-BY-YEAR BASIS AND GO ON THE CONTINUING AGREEMENTS LIST, AND OF COURSE, WE HAVE AN OUT CLAUSE IN ALL OF OUR AGREEMENTS.

SO POTENTIALLY, IF WE WOULD NEED TO GET OUT OF THEM, WE COULD GIVE NOTICE.

- RIGHT. OKAY, GOOD. THAT WAS MY UNDERSTANDING IS THAT WE BASICALLY DID RENEW THEM EVERY YEAR, AND SO EVERY YEAR WAS AN OPPORTUNITY TO REASSESS.

I MEAN, IT'S BASICALLY THE END OF FEBRUARY, YOU KNOW, WE'RE TALKING ABOUT THE END OF JUNE.

I THINK IF WE, IT WOULD BE HELPFUL, UM, AGAIN NOT DESIRABLE BUT HELPFUL, IF OUR BOARD GAVE SOME INDICATION THAT THOSE WOULD BE ASSESSED TODAY SO THAT, UM, RECIPIENTS HAVE THREE MONTHS TO AT LEAST DO SOME CONTINGENCY PLANNING THE WAY THAT WE'RE HAVING TO DO.

UM, THE, I THINK IT'S ROUGHLY $600,000 FOR THE HOUSING INITIATIVE IN THE CEO'S OFFICE.

COULD, UM, COULD SOMEONE PROVIDE JUST A LITTLE BIT MORE COLOR ON WHAT THAT PARTICULAR INITIATIVE IS? HOW [CROSSTALK]. - YEAH, SO, UM, YOU MIGHT RECALL PART OF OUR MEASURE K SPENDING PLAN INCLUDED FUNDING SETTING ASIDE A MILLION DOLLARS FOR HOUSING-RELATED PROJECTS.

WE HAVE BEEN USING PART OF THAT FUNDING OVER IN THE HEALTH SERVICES AGENCY FOR A ROOM AND CARE BOARD, UH, BOARD, ROOM AND CARE.

AND SO, UM, LAST FISCAL YEAR WE SPENT OUT EVERYTHING, UM, EXCEPT FOR $400,000, IT WENT TO A VARIETY OF, WHAT WE DID SPEND WENT TO A VARIETY OF BUCKETS IN HSD AND HSA.

UM, WE, IT, IT, IT ENDED UP NOT GETTING MOVED LAST FISCAL YEAR FOR THAT REMAINING 400,000, SO IT FELL INTO OUR CONTINGENCY.

WE ARE ASKING TO, TO BRING IT BACK OUT TO SET IT ASIDE.

UM, THERE IS ALSO 200,000 REMAINING IN THIS FISCAL YEAR BUDGET FOR THE MEASURE K HOUSING BUCKET.

AND SO IN TOTAL THAT'S 600,000.

WE HAVE SOME STUDIES WE'RE LIKELY GOING TO HAVE TO DO HERE AT 701 AS PART OF THE HOUSING VIABILITY PROJECT.

AND SO WE MAY NEED SOME OF THOSE FUNDS TO SUPPORT THAT EFFORT WHICH IS, THE GOAL OF THAT IS TO BRING AFFORDABLE AND WORKFORCE HOUSING HERE TO OUR 701 CAMPUS.

UM, WE ALSO HAVE VARIOUS PLANNING EFFORTS IN OTHER AREAS OF THE COUNTY, WHETHER IT'S AREA-SPECIFIC PLANS, WE HAVE THE FREEDOM CAMPUS THAT WE MIGHT WANT TO LOOK AT, UM, OPENING THAT UP AGAIN FOR HOUSING.

SO WE'RE POTENTIALLY, UM, GOING TO HAVE CONTRACTS AND CONSULTANTS AND THINGS WE'RE GOING TO HAVE TO GET ENCUMBERED TO MOVE FORWARD THAT WORK, AND SO WE'RE ASKING TO MOVE IT INTO THE CEO'S OFFICE SO WE DON'T LOSE TRACK OF IT.

OF COURSE, WE'RE GOING TO COME BACK TO YOU AND REPORT ON ANY USES OF THAT, UM, BUT IT'S JUST TO MOVE THE FUNDS.

- ALL RIGHT, SO NOT, SO, SO SOME OF THAT 600,000 WOULD BE FOR YOU SAID, UH, ROOM, ROOM AND SHELTER TYPE ACTIVITIES, - NO. - OR IS THAT'S ALL FOR POTENTIAL CONSULTANTS? - IT'S ALL FOR HOUSING, [CROSSTALK] OUR HOUSING WORK.

THE ROOM AND BOARD COSTS ARE ALREADY IN THE HEALTH SERVICES BUDGET.

- UM, I MEAN, I THINK THIS IS, UH, I'M, I'M ABSOLUTELY SUPPORTIVE OF BUILDING HOUSING ON OUR VARIOUS CAMPUSES, INCLUDING HERE AT 701.

UM, I THINK THAT WE SHOULD DEFINITELY LOOK AT, BEFORE SPENDING THAT MONEY, LOOK AT, UM, YOU KNOW, THE, THE VARIOUS POTENTIAL INVESTMENTS WE CAN MAKE AND WHETHER IT FALLS INTO THE SHORT, MEDIUM, OR LONG TERM.

I MEAN, I THINK ULTIMATELY, UH, YOU KNOW, BUILDING HOUSING ON THIS CAMPUS OR ANY OF THE OTHERS IS GOING TO BE MORE OF A LONG-TERM INVESTMENT.

UM, MY ALSO UN-, MY UNDERSTANDING IS WE DID SORT OF AN INITIAL FEASIBILITY STUDY FOR THIS CAMPUS AND THAT THE NEXT PHASE IS ACTUALLY JUST TO RELEASE A REQUEST FOR INTEREST AND BASICALLY ASK FOR PROPOSALS, UM, FROM DEVELOPERS, AND SO THAT THERE HOPEFULLY THERE WOULDN'T BE LIKE A HUGE CONSULTING FEE THAT WE NEED TO PAY THERE, THAT WE COULD STILL MOVE THOSE EFFORTS FORWARD, UH, BY AT THIS POINT JUST ASKING FOR, FOR INFORMATION TO BE SUBMITTED FROM THE OUTSIDE.

AND I ALSO THINK THAT WE SHOULD BALANCE, UM, YOU KNOW, INVESTMENTS ON OUR CAMPUSES, UH, WHICH COULD BE MORE LONG-TERM, WITH, UM, ANY OPPORTUNITIES TO CONTINUE TO MOVE THE STREAMLINE SANTA CRUZ EFFORT FORWARD BECAUSE AT THE SAME, AT THE END OF THE DAY, THOSE ARE PERMITS THAT ARE, WE'RE RECEIVING EVERY DAY TO BUILD THINGS THAT ARE GOING TO IMPROVE OUR PROPERTY, IMPROVE PROPERTY VALUES AND INCREASE PROPERTY TAXES POTENTIALLY THIS YEAR OR NEXT YEAR.

SO THOSE ARE MUCH MORE OF A SHORT-TERM, UH, INVESTMENT PAYBACK I BELIEVE.

SO, UM, YOU KNOW, ULTIMATELY WE HAVE TO JUST BE VERY, VERY SHREWD ABOUT OUR INVESTMENTS RIGHT NOW.

UM, BUILDING FISCAL CAPACITY AND RESILIENCE WAS MENTIONED

[03:55:03]

I MEAN, THERE'S ROOM TO BE HOPEFUL STILL, UH, THE YEAR IS, THE YEAR IS YOUNG.

UM, I THINK WHAT WAS NOT REALLY DISCUSSED VERY MUCH IS THAT JUST THE PRECARIOUS SITUATION OUR INFRASTRUCTURE IS IN TODAY, BECAUSE WE'VE BASICALLY FINANCED SO MUCH OF OUR, OUR, THE SERVICES WE PROVIDE OVER DECADES BY DEFERRING MAINTENANCE AND INFRASTRUCTURE.

UM, AND SO IT'S BEEN A RELATIVELY LIGHT WINTER, UM, BUT AND WHETHER IT'S THIS YEAR OR NEXT YEAR OR THE YEAR AFTER THAT UM, WE COULD ABSOLUTELY SEE, UM, JUST A LOT MORE DISASTER COSTS HIT US.

UM, AND SO WE HAVE TO CONSIDER THAT.

I, I WOULD...

ARE WE LOOKING AT BUILDING INTO OUR RESERVES THAT 2.9 GOING UP TO $6.4 MILLION THAT WE COULD BE, MIGHT HAVE TO PAY TOWARDS DISASTER DEBT OR ARE WE BUILDING THAT INTO THE, INTO THE BUDGET IN SOME OTHER WAY? - THAT, THAT WOULD COME IN THE FORM OF THE BUDGET.

SO IF, IF WE SAW AN ESCALATION IN COST, YOU'D SEE IT IN, IN A BUDGET PROPOSAL.

- IN TERMS OF LIKE INCREASING OUR CONTINGENCY BUDGET OR RESERVES BUDGET, OR, OR WOULD JUST BE... - IT, IT WOULD BE JUST...

- ...WHEN THE BILL COMES WE'RE GOING TO BUDGET FOR IT? - WE ARE UNABLE TO RENEGOTIATE DEBT SERVICE COSTS THAT ARE...

WE HAVE A LEGAL OBLIGATION TO BONDHOLDERS.

SO IF WE'RE NOT ABLE TO MEET OUR PAYDOWN EXPECTATIONS FROM FEMA, THOSE OBLIGATIONS STILL EXIST.

SO WE WOULD JUST SEE A BUDGET ADJUSTMENT OF PUSHING THOSE COSTS UPWARDS, AND THEN THERE'LL HAVE TO BE A DOWNWARD OFFSET SOMEWHERE ELSE.

- RIGHT.

OKAY.

UM, I THINK THE MORE PROACTIVE WE COULD BE ABOUT SAVING FOR THAT THE BETTER.

UH, ESPECIALLY BECAUSE THERE'S OTHER KINDS OF, UM, DISASTER IMPACTS THAT I DON'T KNOW IF WE'RE EXPLICITLY, IF, IF WE'RE PLANNING ENOUGH FOR.

UM, AND FINALLY, THERE WAS SOME MENTION OF, UH, POTENTIAL REVENUE ENHANCEMENTS.

UM, NOT A LOT OF COLOR GIVEN TO THOSE, BUT ANY, WOULD, WOULD LOVE TO HEAR ANYONE DISCUSS, UH, WHAT SOME OF THOSE IDEAS LOOK LIKE FROM YOUR SIDE.

- YEAH, I MEAN, AT A HIGH LEVEL, UM, WE STILL HAVE AN ABILITY TO GO AFTER SOME ADDITIONAL SALES TAX, UM, SO THAT MIGHT BE IT.

WE'RE CURRENTLY AT 9.5 CENTS.

UM, YOU KNOW, THE COUNTY ON ITS OWN HAS A QUARTER CENT LEFT, YOU KNOW, AT SOME POINT WE COULD LOOK AT GOING FOR THAT.

UM, WE'VE ALSO TALKED WITH YOU AND WE'VE, UM, GOTTEN SOME INFORMATION ON TRYING TO FIGURE OUT ON THE ROAD SIDE, YOU KNOW, WHAT WE SHOULD BE DOING AND WHAT IF IT MAKES SENSE TO FORM FAULT, SMALL CSAS, UM, YOU KNOW, CREATE ADDITIONAL ZONES OR WHAT WOULD BE APPROPRIATE WITH TO BRING IN ADDITIONAL ROAD FUNDING THAT'S DEDICATED AND WOULD ACTUALLY, UM, GET ROAD PROJECTS DONE ON A TIMELY BASIS SO, UM, THERE'S THAT, AND THEN OBVIOUSLY WE'RE CONSTANTLY TRYING TO ENGAGE WITH OUR ASSOCIATIONS AND HEAR ABOUT WHAT OTHER COUNTIES ARE DOING, UM, TO LEARN FROM THEM.

UM, YOU KNOW, THERE'S, THERE'S...

THERE ARE ALWAYS IDEAS THAT POP UP, UM, THAT POTENTIALLY WE COULD PURSUE, IT JUST IS A MATTER OF WHETHER IT'S A PRIORITY FOR THE BOARD AND, AND, UH, AN INTEREST IN, IN PURSUING THEM.

- OKAY. THANK YOU.

- SUPERVISOR DE SERPA.

- THANK YOU.

UM, SO I THINK MANY OF US UP HERE HAVE TALKED TO OUR STATE LEGISLATORS AND ASSEMBLY PEOPLE ABOUT, UM, THE PROPERTY TAX REIMBURSEMENT THAT WE GET WHICH IS 13.4 CENTS ON THE DOLLAR, AS NOT BEING FAIR WHATSOEVER, UM, TO OUR COUNTY.

AND IS THERE A CHANCE THAT WE WOULD EVER EITHER GET TOGETHER WITH OTHER SMALL COUNTIES THAT ARE, FIND THEMSELVES IN A SIMILAR POSITION AND SUE THE STATE ABOUT THIS? BECAUSE I HAVE ASKED...

I MEAN, WE HAVE, WE HAVE SAT WITH THE BEST YOU KNOW, LEGISLATORS THAT WE HAVE, AND, UM JOHN LAIRD, ROBERT RIVAS THE ANSWER IS NO, WE'RE NOT CHANGING ANYTHING, RIGHT? AND SO, AND YOU KNOW, AND I THINK MANU IN PARTICULAR, SUPERVISOR KOENIG, HAS REALLY, UM, TRIED TO FIGURE OUT A WAY TO MAKE THIS HAPPEN, TO GET THESE CHANGES IN PLACE THAT WOULD ACTUALLY BRING SOME PARITY HERE.

AND, UM, TO DATE, WE HAVE BEEN NOT UNSUCCESSFUL AT DOING THAT UM, BECAUSE THERE IS NOT THE WILL TO MAKE THE CHANGES.

SO WOULD WE EVER CONSIDER SUING THE STATE OVER THIS MATTER?

[04:00:03]

- YEAH, WHAT ORANGE COUNTY DID, THERE'S A THERE'S A REALLY MORE COMPLICATED STORY BEHIND THAT.

I ACTUALLY TALKED WITH THE, ONE OF THE ATTORNEYS THAT WAS INVOLVED WITH THAT AND IT'S, IT'S NOT AS - SIMPLE, RIGHT? - ... IT'S BEING REPRESENTED TO YOU.

YEAH, IT'S, IT'S NOT AS IT'S BEING REPRESENTED TO YOU.

I MEAN, FUNDAMENTALLY, IN ORDER TO SUE SOMEBODY, YOU HAVE TO HAVE A CAUSE OF ACTION IN ORDER TO SUE SOMEBODY.

WE ARE, AS A COUNTY, WE ARE A SUBDIVISION OF THE STATE OF CALIFORNIA, WE SIT UNDERNEATH THE STATE OF CALIFORNIA.

UM, I'M HARD PRESSED AT THE MOMENT TO KNOW WHAT CAUSE OF ACTION THAT OUR COUNTY WOULD HAVE TO SUE THE STATE WHAT BASIS WE WOULD HAVE, WHAT CLAIM WE WOULD MAKE.

UM, AGREED THAT IT'S VERY UNFAIR, BUT ONCE WE START TALKING ABOUT UNFAIR OR WHAT'S FAIR, WE'RE TALKING MORE ABOUT POLICY CONCERNS THAN WE'RE TALKING ABOUT LEGAL CONCERNS, UNLESS SOMEONE CAN POINT TO ME A LAW THAT RESTRICTS THE LEGISLATORS FROM DOING WHAT THEY'RE DOING.

AND IT MAY FUNDAMENTALLY BE SOMETHING THAT'S MORE APPROPRIATE FOR THE BALLOT BOX AND FOR FOLKS TO BE, UM, SELECTING TO SEND LEGISLATORS TO THE STATE WHO ARE GOING TO FIGHT FOR, UM, A DIFFERENT CALCULATION.

- OKAY.

UM, SANTA CLARA GETS 55 CENTS ON THE DOLLAR, SAN FRANCISCO GETS 65, I THINK MONTEREY GETS WHAT, 19 OR SOMETHING? DO YOU REMEMBER? - 16 OR SOMETHING, BUT YEAH.

- BUT IT LIKE TRANSLATES INTO MILLIONS MORE DOLLARS TO THEIR GENERAL FUND.

SO IT'S JUST, IT'S JUST NOT FAIR.

UM, OKAY, SO, YOU KNOW, I'M GOING TO REPEAT SOME OF THE SAME THINGS SUPERVISOR KOENIG JUST SAID.

UM, YOU KNOW, STREAMLINE SANTA CRUZ IS VERY, VERY IMPORTANT BECAUSE IT WILL INCREASE PROPERTY TAX IF WE CAN GET THINGS BUILT QUICKLY, EFFICIENTLY, UM, IT WILL BRING MORE REVENUE IN.

UM, IF THERE'S ANYWHERE WE COULD BUILD A DISTRIBUTION CENTER IN THE COUNTY, WE SHOULD BE LOOKING AT THAT.

LIKE, THERE MIGHT BE INDUSTRIAL AREAS, THERE'S SOME IN SOQUEL THERE'S SOME, UH, IN THE UNINCORPORATED AREAS OF WATSONVILLE, UM, THAT COULD, THAT THERE'S WAREHOUSES ON THERE RIGHT NOW OR SORT OF DILAPIDATED, UM, INDUSTRIAL AREAS THAT COULD BE, UM, RAISED AND WE COULD BUILD SOMETHING.

SO I THINK WE NEED TO LOOK AT SOMETHING LIKE THAT TO BRING MORE REVENUE, BRING THAT $10 MILLION OF SALES TAX REVENUE BACK INTO OUR COUNTY COFFER.

OF COURSE GRANTS, EARMARKS, THERE'S BEEN A LOT OF MEDIA RECENTLY ABOUT EARMARKS AND LOCAL PROJECT REQUESTS, UM, COMING IN FROM OUR FEDERAL, UM, LAWMAKERS, WHICH IS REALLY IMPORTANT.

IN FACT, I WAS ON A WEBINAR YESTERDAY, AND WE'VE GOT TWO DEADLINES COMING UP, MARCH 6TH AND MARCH 11TH AND SO IF WE'VE GOT PROJECTS WHERE WE NEED MONEY, NOW IS THE TIME TO GET THOSE REQUESTS IN.

I UNDERSTAND WE'VE GOT, YOU KNOW, INVESTMENTS, AND WE DON'T HAVE, UM, A, A GENEROUS RESERVES RIGHT NOW, BUT I THINK WE COULD DO BETTER ON THE INVESTMENTS THAT WE HAVE, AND I UNDERSTAND THERE ARE GUARDRAILS REGARDING THAT, BUT I DO THINK WE COULD BE DOING BETTER, POTENTIALLY THAN WHAT WE ARE NOW.

AGAIN, ECONOMIC DEVELOPMENT TO BRING IN REVENUE IS REALLY IMPORTANT, AS YOU KNOW, TO ME, AND I DON'T SEE THAT BEING MOVED FORWARD IN ANY RAPID WAY AND SO I WOULD LIKE MORE FOCUS ON ECONOMIC DEVELOPMENT IN OUR UNINCORPORATED AREA.

UM, I JUST WAS LOOKING AT, UM, SANTA CLARA COUNTY, THEY HAD TO CUT LIKE 365 JOBS RECENTLY BECAUSE THEY'RE LOOKING AT AN ENORMOUS DEFICIT OVER THERE, EVEN WITH THE PASSAGE OF MEASURE A.

UM, LET ME JUST TELL YOU WHAT IT IS, OURS LOOKS, YOU KNOW, OBVIOUSLY WE HAVE, WE'RE A SMALLER COUNTY, BUT, UM, I THINK $270 MILLION IS WHAT THEY JUST CUT OUT OF THEIR BUDGET.

SO, UM, SO I DO THINK WE NEED TO BE TALKING TO OUR, AND YOU PROBABLY ALREADY ARE TALKING TO THE UNIONS ABOUT FURLOUGHS, ELIMINATION OF POSITIONS, ETC., ETC.

I DON'T, YOU KNOW, I DON'T KNOW HOW DEEPLY WE'RE GOING INTO THAT NOW, BUT WE NEED TO.

UM, I AM VERY CONCERNED ABOUT OUR DISASTER BOND PAYMENTS THAT WILL COME DUE IN 2027 IF WE CAN'T GET THAT $53 MILLION PAID DOWN.

UM, MARCUS, CAN YOU TELL ME EXACTLY UM, WHAT THAT PAYMENT MIGHT BE? I KNOW THAT THE INTEREST RATES MAY CHANGE, ETC.

BUT WHAT ARE WE LOOKING AT IN TERMS OF PAYMENT OUT OF THE GENERAL FUND FOR THAT BOND OBLIGATION? - WE'VE GOT 800,000 IS OUR, IS OUR AMOUNT CURRENTLY

[04:05:04]

IT'LL JUMP UP TO 2.6 MILLION IN THE OUT YEARS, AND I CAN GET YOU THE, THE REST OF THE DETAILS.

I THINK IT, IT WILL REACH $4.1 MILLION AT ITS HIGH POINT IN THE 2030S.

BUT, BUT WE HAVE BEEN SUCCESSFUL WITH GETTING THE, THE REIMBURSEMENTS AND THERE'S NO INDICATION THAT WE WON'T, OTHER THAN EVERYTHING'S UNCERTAIN WHEN IT COMES TO THE FEDERAL DECISION-MAKING.

- YEAH, IT'S COME DOWN ABOUT 30 MILLION, RIGHT? 30 SOMETHING MILLION.

- OUR TOTAL REIMBURSEMENT. - IN TERMS OF OUR FEMA REIMBURSEMENT AND OUR, YEAH. -YES.

WE'VE BEEN, WE'VE HAD WONDERFUL SUCCESS IN ADVOCACY OVER THE LAST SEVERAL YEARS.

THAT STARTED TO SLOW DOWN, WE'RE NOT SEEING, SEEING THAT SAME LEVEL OF...

- SURE.

- BUT WE'RE, WE ARE STILL SEEING THE TRICKLE IN OF PAYMENTS.

- OKAY.

AND THEN THE OTHER THING OF COURSE I WORRY ABOUT IS JUST SOME OF THE NEW PROGRAMS THAT WE PUT INTO PLACE WHICH ARE WONDERFUL BUT ARE GOING TO COST OUR COUNTY MONEY THAT WE, WE'RE NOT ON THE HOOK FOR, NOT ON THE HOOK, BUT WE DIDN'T, WEREN'T RESPONSIBLE FOR BEFORE, LIKE THE CHILDREN'S CRISIS CENTER, WHICH I UNDERSTAND WILL BE ABOUT $5 MILLION OR MORE UM, WILL COME RIGHT OUT OF OUR GENERAL FUND TO OPERATE THAT UNIT - YEAH, WE'RE...

I MEAN, YES, SO WE'RE TRYING TO, ONE, DRAW DOWN AS MUCH FEDERAL FUNDING WE CAN FOR THAT CENTER FOR CHILDREN WHO BECOME PATIENTS THERE, AND THEN TWO, WE, WE OBVIOUSLY WANT TO HAVE THAT CENTER NOT HAVE EMPTY BEDS, SO WE'RE GOING TO BE TRYING TO FILL IT WITH CHILDREN FROM OUTSIDE OUR COUNTY, UM, TO MAKE SURE THAT WE'RE NOT AT A LOSS.

SO, UM, IT'S...

THERE'S BEEN SOME DELAYS IN GETTING THE LICENSES TO, TO OPEN THAT CENTER, BUT ONCE WE'RE FULLY UP AND OPERATIONAL, UM, HOPEFULLY WE'LL GET A SENSE OF WHERE THINGS STABILIZE IN TERMS OF PATIENTS FROM OUR COUNTY, PATIENTS FROM OUTSIDE THE COUNTY, AND WHAT OUR REVENUES LOOK LIKE.

- OKAY, THANK YOU.

I THINK THAT'S IT FOR ME NOW.

- SUPERVISOR HERNANDEZ.

- I'M NOT SURE IF YOU'RE CONTROLLING THE SCREEN, BUT THE SCREEN WITH THE, UH, FOUR PILLARS.

OH, OKAY.

SO, CAN YOU TALK A LITTLE BIT MORE ABOUT LIKE BUILDING FISCAL CAPACITY AND RESILIENCE, LIKE WHAT ARE THE IDEAS THAT WE HAVE, UH, FOR THAT? - YES, SO BUILDING FISCAL CAPACITY AND RESILIENCE WERE THE NEW REVENUE OPTIONS ENHANCEMENTS THAT I MENTIONED.

YOU KNOW, ONE IDEA IS TO BRING MORE REVENUES INTO THE COUNTY THE OTHER IS TO ADDRESS THE PROPERTY TAX AND SALES TAX REFORMS TO TRY TO GET US MORE OF THE SHARE OF THE, THE REVENUES SINCE WE'RE LOSING REVENUES RIGHT NOW.

UM, SO THOSE ARE TWO IDEAS.

AND THEN AS WE HAVE NEW RESOURCES TRYING TO BUILD UP OUR RESERVES SO THAT WE'RE, UM, NOT AS, YOU KNOW, SENSITIVE OR AT RISK WHEN WE FACE THESE MAJOR CHANGES AT THE FEDERAL AND STATE LEVELS.

- YOU KNOW, I GUESS THAT'D ALSO INCLUDE, I THINK THAT, UH, SUPERVISOR KOENIG MENTIONED THE STREAMLINING.

I THINK THERE'S, THERE'S PROBABLY OPPORTUNITIES IN DIFFERENT AREAS THAT WE CAN START TO BEGIN TO DO THAT.

UM, YOU KNOW, SOUTH COUNTY'S TALKING ABOUT A LOT ABOUT HOUSING ADDING, JUST ADDING MORE HOUSING TO OUR STOCK.

UM, AND IN TERMS OF GETTING STATE FUNDING, YOU SAID MENTIONED FOR MANDATES? - YES. - WHAT, WHAT TYPE OF MANDATES WOULD WE BE LOOKING AT? - SO WE'RE, WE'RE GONNA BE ADVOCATING VERY HARD FOR THIS STATE TO PROVIDE A LONG-TERM SOLUTION TO FUND OUR HEALTH AND SAFETY NET MANDATE.

SO MEDI-CAL CALFRESH, UM, ARE THE TWO PROGRAMS MOST SIGNIFICANTLY HIT BY HR1 THE FEDERAL RECONCILIATION BILL.

SO WE ARE PROJECTING HUGE DECREASES IN COUNTY REVENUES IN, UM, AT THE SAME TIME, SOME INCREASES IN COUNTY COSTS BECAUSE IT'S GONNA TAKE MORE TIME TO, UM, TO PROCESS WORK REQUIREMENTS AND REDETERMINATIONS.

SO WE ARE ASKING THE STATE TO STEP UP AND TO PROVIDE A LONG-TERM FUNDING SOLUTION TO NOT PUT ALL THAT ON COUNTIES.

THAT IS JUST...

IT, IT'S GONNA HURT ALL OF US TO AN EXTENT THAT IT, IT'S JUST WE CAN'T ABSORB ALL OF THAT.

- OKAY. THANK YOU.

- SUPERVISOR CUMMINGS.

- THANK YOU CHAIR.

UM, JUST WANNA THANK MY COLLEAGUES FOR THEIR QUESTIONS AND CONVERSATIONS ON THIS TOPIC.

[04:10:01]

I KNOW FOR MANY OF US, UH, YOU KNOW, GETTING THIS ON A THURSDAY AND HAVING THREE DAYS TO KIND OF DIG THROUGH ALL THE MATERIALS AND COME UP WITH RECOMMENDATIONS, ESPECIALLY WHEN MANY OF US WERE TRAVELING AND ENGAGED IN OTHER ACTIVITIES THIS WEEKEND, I THINK, WAS REALLY CHALLENGING, AT LEAST FOR ME AND MY OFFICE TO REALLY THINK ABOUT WHAT THE PRIORITIES ARE.

BUT I, I DO APPRECIATE US KINDA LAYING OUT THE FISCAL CHALLENGES WE'RE GONNA BE FACING AND THEN HAVING AN OPPORTUNITY FOR US TO REALLY THINK THROUGH, YOU KNOW, WHAT ARE, WHAT ARE OUR PRIORITIES AND HOW DO WE WANT TO PRIORITIZE HOW WE'RE GONNA ADDRESS THESE ISSUES? AND ALSO JUST WANNA APPRECIATE THE FACT THAT BY DELAYING THIS PORTION OF THE CONVERSATION, IT SOUNDS LIKE YOU ALL ARE GONNA BE MEETING WITH COMMUNITY ORGANIZATIONS ON FRIDAY.

THERE'LL BE SOME INPUT THAT COMES IN THROUGH THAT CONVERSATION.

UM, WE'LL BE ABLE TO HOPEFULLY MEET WITH YOU ALL BETWEEN NOW AND WHEN THIS COMES FORWARD ON MARCH 10TH.

AND THAT'LL REALLY GIVE US A SENSE OF KIND OF BEING ABLE TO HEAR FROM THE COMMUNITY, UNDERSTAND WHERE FOLKS ARE AT, AND, YOU KNOW, HOPEFULLY LAND US ON PRIORITIES THAT REALLY REFLECT, UM, WHAT WE'RE HEARING FROM THE COMMUNITY UM, AS IT PERTAINS TO HOW WE'RE GONNA ADDRESS THESE LOSSES.

UM, I KNOW THAT, UM, CEO COBURN AND SUPERVISOR MARTINEZ, YOU TWO ARE BOTH AT THE NATIONAL ASSOCIATION OF COUNTIES, UH, THIS PAST WEEKEND.

REALLY WANT TO THANK YOU ALL FOR BEING THERE TO REPRESENT, UH, THE COUNTY.

BUT I JUST WANT TO TRY TO SEE IF THERE'S ANYTHING THAT CAME OUT OF THAT MEETING.

IN TERMS OF HOW OTHER COUNTIES ARE BEING IMPACTED ACROSS THE NATION AND KINDA WHAT THE CONVERSATION'S LIKE AT THAT LEVEL.

'CAUSE WE'RE OBVIOUSLY NOT THE ONLY COUNTY THAT'S EXPERIENCING THIS.

AND GIVEN THAT THERE'S A CONVENTION AND COUNTIES ARE BEING HIT ACROSS THE NATION, JUST CURIOUS IF THERE'S ANYTHING THAT CAME OUT OF THAT CONVENTION THAT MAYBE IS, UM, PERTAINING TO THIS TOPIC AND HOW COUNTIES ARE TRYING TO ADDRESS US.

- THERE WAS A LOT OF TALK ABOUT HR1.

I WENT TO PROBABLY TWO OR THREE SESSIONS ON IT JUST TO HEAR WHAT OTHER COUNTIES HAD TO SAY.

UM, ONE IS THAT WE ARE NOT ALONE.

ALL THE COUNTIES ARE FACING THIS.

THE REVENUE REDUCTIONS AND COST SHIFTS TO COUNTIES ARE JUST STAGGERING WHEN YOU PROBABLY COMPILE THE NUMBERS NATIONWIDE.

I MEAN, THERE'S A LOT THAT IS SHIFTING TO COUNTIES THAT WE ARE JUST NOT EQUIPPED TO ABSORB.

SO I MEAN, THAT'S SOME REASSURANCE, RIGHT? THAT WE'RE NOT IN THIS ALONE.

UM, ONE THING THAT I HEARD OF AT THE LAST SESSION I ATTENDED IS THAT, UM, NACO HAS AN INITIATIVE WORKING ON TRANSFORMING HUMAN SERVICES, AND THEY ARE WORKING WITH COUNTIES WHO ARE INTERESTED IN LOOKING AT WAYS TO CREATE EFFICIENCIES OR TO UTILIZE NEW TECHNOLOGY TO BECOME MORE EFFICIENT WITH, UM, DOING THE REDETERMINATIONS, DOING THE PROCESSING, THE ELIGIBILITY REQUIREMENTS THAT OUR HUMAN SERVICES DEPARTMENT HERE IN SANTA CRUZ COUNTY DOES.

SO, UM, I ALREADY CONNECTED, UM, OUR DIRECTOR, RANDY MORRIS WITH, UM, THAT INITIATIVE AND PROVIDED HIM SOME INFORMATION.

HE'S GONNA BE REACHING OUT TO THE CALIFORNIA WELFARE DIRECTORS ASSOCIATION BECAUSE IT MAY BE THAT THEY ARE COORDINATING WITH THAT INITIATIVE ON A STATEWIDE BASIS TO TRY TO LEARN, UH, AND TEST THINGS OUT.

UM, THE GOAL IS TO FIGURE OUT WHAT DIFFERENT MODELS, WHAT DIFFERENT TOOLS, WHAT DIFFERENT...

WHAT CAN WE DO DIFFERENTLY WHEN WE HAVE THESE HUGE CHANGES STRUCTURALLY IN HOW COUNTIES ARE SUPPOSED TO ADMINISTER THESE BENEFITS? SO WE'RE HOPING TO LEARN FROM THAT EFFORT.

BUT, UM, THOSE ARE JUST SOME OF THE THINGS I HEARD COMING OUT OF NACO AND, UM, I'M SURE WE'RE GONNA BE TRYING TO STAY REALLY INVOLVED IN THESE ASSOCIATIONS TO FIGURE OUT, UM, IF THERE'S ANYTHING WE CAN TEST OUT HERE.

- YEAH. THANKS FOR THE QUESTION.

UM, IN ADDITION TO THE HR1 IMPACT, ONE THING THAT I WAS REALLY LISTENING FOR AND JUST HEARD SUCH ALIGNMENT ON WAS THE IMPACT OF NATURAL DISASTERS ON COUNTIES.

THE IMPACT OF CLIMATE CHANGE IS HITTING EVERYWHERE.

WHETHER IT'S MASSIVE FLOODS, HURRICANES, STORMS, FREEZES, IN OUR CASE, WILDFIRES.

UM, AND THE DISASTER THAT IS FEMA IS IMPACTING COUNTIES.

I MEAN, THERE ARE JUST HUNDREDS OF MILLIONS OF DOLLARS OWED TO COMMUNITIES.

COMMUNITIES WAITING BEYOND 10 YEARS FOR REIMBURSEMENT.

THERE ARE HURRICANE KATRINA REIMBURSEMENTS THAT HAVEN'T BEEN RECEIVED YET.

UM, AND SO THERE IS REALLY A LOT OF PRESSURE FROM COUNTIES ON THE FEDERAL ADMINISTRATION TO TRY TO EXPEDITE THAT.

UM, THERE IS A BILL CURRENTLY, UM, THAT I THINK'S BEEN PASSED BY THE HOUSE THAT IS FUTURE LOOKING.

SO IT WOULD PUT SOME TIMELINES AND MANDATES ON REIMBURSEMENTS

[04:15:01]

I HAD DIDN'T HEAR MUCH RELIEF ABOUT KIND OF BACK PAYMENT.

UM, BUT I THINK THAT'S AN AREA THAT THERE'S JUST A LOT OF ALIGNMENT FROM OTHER COUNTIES.

UM, AND THEN ALSO JUST DISCUSSION ABOUT HOW, YOU KNOW, WE, WE, WE CAN'T ANTICIPATE EVERY DISASTER.

SO HOW DO WE PREPARE WITH OUR COMMUNITY ORGANIZATIONS, OUR TRUSTED, RESILIENCY HUBS, IN OUR CASE, OUR VOABS, TO BE PREPARED IN THE EVENT OF EMERGENCIES AND REALLY TO RELY ON THE STRENGTH THAT EXISTS WITH WITHIN OUR COMMUNITIES BECAUSE THE PUBLIC SECTOR CAN'T DO EVERYTHING WHEN THIS HAPPENS.

AND SO I THINK THERE'S A ROLE FOR OUR COUNTY TO WORK WITH COMMUNITY-BASED ORGANIZATIONS TO COORDINATE AND COMMUNICATE, PREPARE, UM, WHETHER IT'S SOMETHING LIKE A NATURAL DISASTER OR A GOVERNMENT SHUTDOWN AND FOOD DISTRIBUTION AGAIN.

AND SO I THINK THERE'S A LOT OF INTERESTING WORK THAT COMES FROM DISASTER OR UH, ECONOMIC DOWNTURNS.

A LOT OF CREATIVITY COMES AND I THINK THAT'S SOMETHING THAT THE COUNTY'S GONNA NEED TO DO.

I WOULD SAY THE OTHER THING THAT CAME FROM, YOU KNOW, THIS ASSOCIATION MEETING IS THAT A LOT OF THE STATE ASSOCIATION LEADERS WERE THERE AS WELL.

AND AS A STATE WITH AS, UM, CEO COBURN WAS SHARING, CSAC IS REALLY PREPARING FOR A VERY STRONG ADVOCACY, UH, BACK TOWARDS THE STATE RELATED TO, UM, THE MANDATES THAT ARE DELEGATED TO US.

AND SO I THINK ALL FIVE OF US WILL NEED TO EXERCISE OUR RELATIONSHIPS AND OUR ADVOCACY SKILLS TO PUSH IN LOCKSTEP WITH OTHER COUNTIES TO TRY TO GET THE STATE TO COME UP WITH SOME RELIEF.

- WELL, THANK YOU BOTH FOR BEING THERE TO REPRESENT SANTA CRUZ COUNTY.

AND I WILL SAY THAT AT THE, UM, RECENT CSAC MEETING THIS DID AS A CSAC REP, THIS DID COME UP IN, UM, CSAC IS PUSHING REALLY HARD AGAINST THE LEGISLATURE AND THE GOVERNOR'S OFFICE, UM, TO THEIR UNWILLINGNESS TO PROVIDE ANY BACKFILL TO COUNTIES.

I MEAN, IT'S JUST REALLY DISAPPOINTING THAT DURING A TIME OF GREAT UNCERTAINTY AND YOU KNOW, WHEN BAD DECISIONS ARE COMING DOWN FROM THE FEDERAL GOVERNMENT THAT OUR OWN STATE ISN'T WILLING TO HELP US OUT AT THIS POINT IN TIME.

SO HOPEFULLY THERE'S SOME SUPPORT THERE.

UM, AND I THINK IT'S GONNA REQUIRE ALL OF OUR CONTINUED ADVOCACY WITH OUR STATE, UH, REPRESENTATIVES TO ENSURE THAT THEY'RE ACTUALLY GONNA REPRESENT US IN THIS CRITICAL MOMENT.

UM, SO GETTING BACK TO OTHER QUESTIONS, I'M JUST WONDERING, ARE THERE ANY MANDATES, UM, THAT WE CAN EITHER PUT OFF OR REDUCE I MEAN, WE'VE HAD SO MANY UNFUNDED MANDATES COME DOWN FROM THE STATE AND YOU KNOW, SOME OF THEM ARE ESSENTIAL, SOME OF THEM MAYBE NOT SO MUCH.

AND SO I DON'T KNOW IF THERE'S BEEN ANY THOUGHTS AROUND, YOU KNOW, OF SOME OF THESE UNFUNDED MANDATES.

ARE THERE ONES WHERE WE CAN FUND THEM, BUT THEY'RE REDUCED IN SUCH A WAY TO WHERE WE CAN PROVIDE THE BASIC AMOUNT OF SERVICES JUST KNOWING THAT THEY'VE KIND OF PLACED THIS OBLIGATION ON US WHEN WE DON'T HAVE MONEY.

- YEAH, THAT'S, THAT'S HARD.

I MEAN, SOMETIMES WE CAN MODERATE OUR LEVEL OF SERVICE FOR MANDATES.

UM, SB 43 IS ONE OF OUR MOST RECENT MANDATES THAT WAS IMPLEMENTED THIS PAST JANUARY, AND WE HAVEN'T BEEN SEEING THE LEVEL OF PETITIONS THAT WE THOUGHT WE MIGHT.

THEY'VE BEEN RELATIVELY LOW, AND SO HOPEFULLY I MEAN, THAT'S, THAT'S GOOD AND THAT'S BAD, RIGHT? BUT ON THE GOOD SIDE, THAT MEANS THAT WE'RE HAVING TO FIND, UM, WE'RE INCURRING FEWER COSTS AND POTENTIALLY REFERRING FEWER PEOPLE TO, UM, SUBSTANCE USE OR, UM, BEHAVIORAL HEALTH SERVICES.

SO, UM, THERE'S POTENTIALLY SOME SAVINGS THERE.

BUT THE STATE DOES OCCASIONALLY SUSPEND MANDATES, SO THAT MIGHT BE AN AREA THAT YOU AS A BOARD CAN HELP US.

IF WE COULD SUSPEND MANDATES THAT MAYBE AREN'T CRITICAL AND THAT WOULD SAVE US FUNDING, THAT WOULD BE IMPORTANT.

I HAVE HEARD THAT THE STATE IS CONSIDERING SUSPENDING THE MOBILE HEALTH CRISIS SERVICES, WHICH DOES NOT SOUND LIKE THE BEST MANDATE TO SUSPEND, AND SO WE'RE CONCERNED ABOUT THAT.

UM, BUT THE SUSPENSION OF MANDATES IS SOMETHING WE CAN LOOK AT AND TRY TO ADVOCATE FOR.

- OKAY. UM, I WILL SAVE MY COMMENTS.

I DO HAVE A FEW COMMENTS AND RECOMMENDATIONS, UM, BUT GIVEN THE TIME, I'LL JUST HOLD OFF UNTIL AFTER PUBLIC COMMENT.

THANK YOU.

- THANK YOU. JUST A COUPLE QUESTIONS.

UM, I THINK THIS IS TO MR. PIMENTEL.

YOU KNOW, I WAS LOOKING AT OUR, UM, JUST THE PROJECTIONS AND ON ONE HAND THIS COULD BE A LITTLE MORE, YOU KNOW, KIND OF TEMPORARY, KIND OF CYCLICAL CHALLENGES WITH THE, UM, STATE OF THE WORLD THAT WE'RE IN.

[04:20:03]

WE HAVE A REAL STRUCTURAL DEFICIT.

I GUESS, COULD YOU SPEAK A LITTLE BIT MORE TO HOW YOU ARE THINKING OR ACTUALLY THIS IS FOR YOU OUR CEO COBURN, LIKE HOW YOU'RE THINKING ABOUT, WHAT IS SHORT TERM, YOU KNOW, THE CURRENT FEDERAL ADMINISTRATION THE CURRENT MANDATES, UM, AND WHAT IS, YOU KNOW, WELL, THE COUNTY HAS SIGNED UP FOR THINGS THAT WE JUST CAN'T, FRANKLY, CAN'T AFFORD IN THE FUTURE.

WE'VE SIGNED CONTRACTS THAT JUST ARE OUTSIDE OUR REACH.

WE, WE NEED TO RESTRUCTURE.

HOW, HOW WOULD YOU SPEAK TO THAT? - THE BULK OF THIS REVISED FORECAST IS THAT STRUCTURAL COMPONENT OF COST THAT WE HAVE AGREED TO DO.

HR1 AS FAR AS OUR FORECAST, IS NOT IMPACTING OUR FORECAST BECAUSE AS YOU MIGHT RECALL, YOU KNOW, MAYBE IT'S AN HOUR AGO NOW, UM, WE'RE ASSUMING THAT HR1 WILL BE SOLVED IN THE DEPARTMENT SUBMISSIONS OF THE BUDGET.

NOW, THAT MAY NOT PROVE TO BE CREDIBLE, AND TO THE EXTENT SOME OF THAT ISN'T SOLVED IN THE SUBMISSION OF DEPARTMENT BUDGETS, THAT WILL ELEVATE AND WORSEN OUR FORECAST.

SO I WOULD, I THINK IF I'M UNDERSTANDING WHERE YOU'RE GOING PERHAPS, OR MAYBE I SHOULD ASK YOU TO CLARIFY BUT IF, IF HR1 IS A PERCEIVED TO BE A CYCLICAL EVENT THAT MAY BE SOME POINT IN TIME, WILL REVERSE COURSE.

UM, IF THAT WERE OUR ONLY CHALLENGE, I THINK WE, WE, WE MIGHT APPROACH THINGS, UM, STILL WITH THE SAME LEVEL OF WE HAVE TO DO SOMETHING, BUT THE SOLUTIONS MIGHT LOOK DIFFERENT.

UM, WHAT WE'RE FACING NOW ARE STRUCTURAL COMMITMENTS THAT HAVE BEEN MADE OVER THE LONG TERM THAT ARE GONNA BE HERE AND WE HAVE TO SOLVE FOR THAT FOR, WITH A LONG-TERM LENS.

I, I HOPE THAT ANSWERS YOUR QUESTION.

- IT DOES.

IT'S UM, I GUESS, WOULD YOU...

HOW WOULD YOU, IF YOU COULD BREAK IT DOWN, HOW MUCH ARE OUR KINDA LABOR CONTRACTS, WHAT PERCENTAGE WOULD THAT BE OF THE STRUCTURAL DEFICIT THAT WE ARE FACING? - UH, RIGHT NOW, IF I RECALL IN THE SLIDE $22.1 MILLION IS OUR ESTIMATE OF, OF HOW OUR FORECAST WORSENED.

OUR FORECAST STANDS AT $23 MILLION DEFICIT FOR NEXT FISCAL YEAR.

SO THE VAST MAJORITY OF OUR CURRENT DEFICIT PROJECTION IS COMING FROM THE COMBINATION OF BOTH MODERNIZING AND UPDATING THE LABOR COSTING TO DETERMINE WHAT OUR LONG-TERM COSTS ARE AND SEEING THE TREND IN WE DID A GOOD JOB IN HIRING AND WE HAVE LESS VACANCIES AS WE USED TO HAVE.

UM, THAT, THAT VACANCY SIDE IS A, AN EXAMPLE OF SOMETHING THAT WE CAN MODERATE FOR SHORT TERM DURATION.

UM, BUT THE OTHER PART IS, IS, IS, IS HERE.

SO IT'S THE BULK OF OUR FORECAST.

- AND IF I'M UNDERSTANDING, WHEN WE AGREE TO THOSE CONTRACTS WE, WE THOUGHT THEY WERE SUSTAINABLE BUT NOW THAT WE'RE SEEING THE REVENUE SIDE OF THINGS, THE SALES TAX, PERHAPS THE, I MEAN PROPERTY TAXES, IT WAS PREDICTABLE.

UM, IT'S, IS THAT WHERE THE SHORTFALL...

LIKE WHAT'S...

BECAUSE, BECAUSE WHAT I'M HEARING AND WHAT I SAW ON THE SLIDES IS THAT, YOU KNOW, THE, THE HR1, I'M SURE THE ADMINISTRATION IT'S OVER HERE, BUT WE HAVE A BIGGER STRUCTURAL SITUATION.

I, I, MY LIKE, HOW, HOW DID WE NOT SEE THAT? OR WHAT'S CHANGING THAT'S PUT US IN THIS POSITION, UM, ON TOP OF THE HR1 IMPACT? - IS, SOME OF IT IS, UM, JUST CHANGES IN REVENUES, UM, ARE, BUT THAT'S ONLY A PART OF IT.

UM, REALLY WHAT MARCUS HAD EXPLAINED EARLIER, OUR FORECASTING AND OUR LABOR COSTING IS MUCH BETTER NOW.

AND SO A LOT OF WHAT WAS WE THOUGHT WAS GONNA HAPPEN HAS CHANGED MORE RECENTLY WITH BEING BETTER STAFFED YOU KNOW, HAVING FEWER VACANCIES, PEOPLE GETTING HIRED AT HIGHER STEPS.

I MEAN, IT'S, IT'S A BUNCH OF THINGS THAT HAVE CONTRIBUTED TO IN OUR BETTER FORECAST MODEL OF RESULTING IN HIGHER COSTS THAN WERE ANTICIPATED WHEN WE AGREED TO THOSE LABOR AGREEMENTS.

- OKAY, THANK YOU.

UM, I GUESS THE REST I'LL SAVE FOR MY COMMENTS AT THE END SO WE CAN GO ON TO PUBLIC COMMENT.

UM, I'M GONNA OPEN IT UP TO PUBLIC COMMENT.

IF YOU WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE APPROACH THE PODIUM AND WE'LL SET THE COMMENT, PUBLIC COMMENT PERIOD FOR TWO MINUTES.

- IS IT ON? OH, THANK YOU.

BECKY STEINBRUNER.

UM, WHAT I'M HEARING HERE IS DISTRESSING.

I'VE BEEN COMING TO THESE MEETINGS A LONG TIME,

[04:25:02]

THAT'S KIND OF PART OF, PART OF WHAT WE HAVE HERE.

BUT ALSO, UM, THE FACT THAT, AND, AND I THINK WE CAN REALLY LEARN FROM THIS MISTAKE OF JUST GOING CRAZY IN OUR ACTIONS BUYING THIS BUYING THAT DURING COVID WAS CRAZY.

AND THAT'S WHAT RACKED UP A LOT OF THIS DEBT.

I REMEMBER THE COUNTY RENTED FOUR WAREHOUSES IN MONTEREY COUNTY TO, UH, POTENTIALLY WAREHOUSE SUPPLIES.

AND THE SHERIFF BOUGHT NEW ATVS SO THEY COULD GO OUT AND PATROL THE BEACHES.

IT, IT WAS CRAZY AND I THINK THAT IT WAS ALL DONE THINKING THAT WE WOULD ALL GET IT BACK.

AND HERE WE ARE.

SO LEARN FROM THIS PLEASE.

WHEN THERE IS A DISASTER, DON'T SPEND AS IF THERE IS NO TOMORROW BECAUSE TOMORROW IS HERE.

AND OUR COUNTY TOOK OUT $90 MILLION BOND THAT TO, TO PAY OUR DEBT DOWN AND, AND IT'S NUTS.

WE CAN'T KEEP DOING THAT WITH A, AN ANNUAL DEBT SERVICE OF $6.5 MILLION.

PLEASE DO NOT EXPECT THE VOTERS TO APPROVE ANOTHER SALES TAX.

WE ARE DONE.

WE ARE MAXED OUT.

BECAUSE OUR PROPERTY TAXES ARE ALREADY HIGH AND I THINK THAT YOU SHOULD CAUSE OF ACTION GO TO THE GOVERNOR AND DEMAND ERAF FUNDS TO BE RETURNED.

THANK YOU.

- ANYBODY ELSE IN THE AUDIENCE? SEEING NONE IS THERE ANYBODY ON THE PHONE? - YES, CHAIR. WE DO HAVE CALLERS.

- THANK YOU.

- HELEN, YOUR MICROPHONE IS NOW AVAILABLE.

- HI, GOOD AFTERNOON.

CAN YOU HEAR ME? - YES, WE CAN HEAR YOU.

- WONDERFUL. WELL, GOOD AFTERNOON CHAIR, SUPERVISORS AND STAFF.

I'M HELEN EWAN-STOREY, COO FOR THE COMMUNITY ACTION BOARD OF SANTA CRUZ COUNTY.

APPRECIATE THE TIME TO SPEAK ON THIS ITEM.

I WAS THERE IN PERSON THIS MORNING, BUT HAD A RETURN TO THE OFFICE THIS AFTERNOON.

AS YOU KNOW, FOR OVER 60 YEARS, CAB HAS BEEN A TRUSTED PARTNER IN PROVIDING CRITICAL SAFETY NET SERVICES INCLUDING FOOD, HOUSING SUPPORT, WORKFORCE READINESS, AND LEGAL AND CRISIS RESPONSE FOR THOUSANDS OF THE COUNTY'S MOST VULNERABLE RESIDENTS EVERY YEAR.

THIS HAS DEFINITELY, UH, BEEN A SOBERING REPORT TO REVIEW, AND WE UNDERSTAND AND DEEPLY RESPECT THAT DIFFICULT BUDGET AND PROGRAMMATIC DECISIONS ARE BEFORE YOU GIVEN THESE PROJECTIONS.

WE ALSO APPRECIATE THAT YOU'RE VIEWING THESE DECISIONS THROUGH THE LENS OF THE COUNTY'S PRINCIPLES, WHICH INCLUDE PRIORITIZING DIRECT SERVICES AND THE HEALTH SAFETY AND WELFARE OF RESIDENTS.

AS WE KNOW WHEN THE ECONOMY STRUGGLES, THOSE WHO ARE MOST VULNERABLE BECOME EVEN MORE SO AND NEED TO BE PRIORITIZED WITH EQUITY AT THE FOREFRONT.

WE ALSO WANT TO EMPHASIZE THE IMPORTANCE OF ONGOING PARTNERSHIP AND DIALOGUE WITH COMMUNITY PROVIDERS SUCH AS CAB AND OTHERS DURING THESE DIFFICULT DELIBERATIONS.

WE BRING EXPERIENCE GROUNDED AND DIRECT CLIENT SERVICE, UM, THAT PROVIDES CRITICAL NEEDS DATA AND INSIGHTS FOR HELPING TO INFORM DECISION MAKING AND PARTICIPATING IN ADVOCACY OPPORTUNITIES OR OTHER POTENTIAL SOLUTIONS COLLABORATIVELY.

WITH THESE EXTRAORDINARY PRESSURES BEFORE US AS A COMMUNITY WE ENCOURAGE YOUR BOARD TO CONTINUE TO CONSIDER UM, STRATEGIES THAT HELP MINIMIZE CUTS TO ESSENTIAL SERVICES AND SHARE IMPACTS EQUITABLY.

AS WE KNOW THAT A SAFETY NET CAN'T FUNCTION WHEN THERE ARE SIGNIFICANT GAPS FOR CERTAIN POPULATIONS OR SECTORS INCLUDING THE LOCAL NONPROFIT SECTOR.

CAB STANDS READY AND WILL CONTINUE TO BE IN CONVERSATION WITH YOUR BOARD TO SHARE EXPERTISE, BRAINSTORM STRATEGIES AND PARTNER AS DECISIONS ARE CONSIDERED TO SUPPORT AS STRONG, RESILIENT, AND EQUITABLE THE COUNTY AS POSSIBLE DURING THESE CHALLENGING TIMES.

THANK YOU.

- THANK YOU.

- WE HAVE NO FURTHER SPEAKERS, CHAIR.

- THANK YOU. I'LL NOW BRING IT BACK TO THE BOARD FOR DISCUSSION AND ACTION.

WOULD ANYBODY LIKE TO BEGIN? SUPERVISOR CUMMINGS.

- THANK YOU, CHAIR.

UM, SO THANKS AGAIN FOR ALL THE HARD WORK ON THIS AND OBVIOUSLY WE'RE IN A VERY CHALLENGING TIME, UM, BUT NOT THE FIRST TIME WE'VE BEEN HERE, SO WE'LL DEFINITELY GET THROUGH THIS.

UM, I DO JUST WANT TO TAKE A MOMENT TO REFLECT WHEN I WAS ON THE CITY COUNCIL, THERE WAS A MOMENT AROUND COVID WHEN WE HAD RECEIVED LIKE $14 MILLION FROM JOHN LAIRD

[04:30:02]

AND A LOT OF THAT MONEY WENT INTO, UM, STARTING UP KIND OF, UM, POSITIONS AND SERVICES THAT WEREN'T ONE TIME AND THAT WERE GONNA REQUIRE LONGER TERMS OF FUNDING.

AND AS A RESULT, BECAUSE THESE ARE ONGOING COSTS, ONE OF THE THINGS THAT CAME OUT OF THAT IS THAT IF THE BOARD, IF THE CITY COUNCIL AT THE TIME WAS GONNA, UM, MOVE INTO, UH, CREATING THOSE PROGRAMS THAT WE WERE GONNA BE IN FACING A FISCAL DEFICIT BECAUSE OF THE FACT THAT THESE WERE GONNA BE WE HAD ONE TIME FUNDING AND THEN WE WERE IMPLEMENTING, UM, ONGOING PROGRAMS AND SERVICES.

AND, UM, I BRING THAT UP TODAY BECAUSE BASED ON KIND OF THE PROJECTIONS THAT WE'RE SEEING, IT SEEMS LIKE JUST DUE TO THE CUTS THAT WE'RE KIND OF FACING THROUGH HR1 AND SOME OF THE OTHER ISSUES RELATED TO LACK OF SALES TAX REVENUE COMING BACK IN AND ALSO THE FEMA REIMBURSEMENT ISSUES THAT WE NOW MAY BE IN A SIMILAR SITUATION WHERE WE ARE FACING WHAT COULD BE A FISCAL EMERGENCY.

AND SO I THINK IT'S REALLY IMPORTANT FOR US TO EXPLORE THAT WHEN THIS COMES BACK.

UM, BECAUSE, YOU KNOW, IF WE'RE GONNA GO AND START CUTTING POSITIONS, UM, YOU KNOW, IF THERE'S THE NEED FOR US TO RENEGOTIATE CONTRACTS, I MEAN IF, IF WE'RE REALLY FACING THIS, THESE FISCAL CHALLENGES AND THERE'S, THERE'S VERY LIMITED RESOURCES FOR US TO CONSIDER.

I MEAN, I THINK THAT IS, YOU KNOW, THAT IS WHAT DEFINES US POTENTIALLY BEING IN A FISCAL EMERGENCY.

AND SO I THINK IT WOULD BE WORTH GETTING SOME FEEDBACK ON THAT AND IF THAT IS SOMETHING WE NEED TO TAKE ACTION ON, YOU KNOW, I THINK IT, UM, WE'LL SEND A MESSAGE NOT ONLY TO THE COMMUNITY ABOUT THE SITUATION THAT WE'RE IN, BUT ALSO IT'S SOMETHING THAT WE CAN SHARE WITH OUR STATE LEGISLATORS, STATE SHARE WITH CSAC, NACO FOR ALL THESE, WITH ALL THESE ORGANIZATIONS THAT ARE, YOU KNOW UM, REALLY SEEING HOW BADLY COUNTIES ARE BEING IMPACTED.

IT REALLY IS GONNA SEND THAT MESSAGE.

AND I IMAGINE THE OTHER COUNTIES MAY, UM, TAKE SIMILAR ACTIONS JUST GIVEN THE AMOUNT OF IMPACTS THAT WE'RE GONNA BE FACING FROM THIS.

UM, SIMILARLY I WANNA SPEAK TO, UM, SUPERVISOR KOENIG'S COMMENTS AND I APPRECIATE THE COMMENTS THAT WERE MADE.

UM, WELL ONE, I WANNA APPRECIATE THE WORK SUPERVISOR KOENIG'S DONE IN TERMS OF TRYING TO GET OUR PROPERTY TAX RATES UP AND OUR RETURNS TO SOMETHING THAT WOULD BE FAIR.

UM, AND, YOU KNOW, MAYBE THERE'S OPPORTUNITIES FOR DISCUSSIONS.

I MEAN, I THINK TO COUNTY COUNCIL'S POINT, YOU KNOW, IT MIGHT BE SOMETHING FOR THE BALLOT BOX, BUT EVEN IF IT WERE TO GO TO THE BALLOT BOX, IT MIGHT BE SOMETHING THAT NEEDS TO GO TO THE STATE LEVEL BECAUSE A LOT OF THIS IS, YOU KNOW, THE RESULT OF PROP 13 GETTING PASSED AND HOW WE'VE, YOU KNOW, KINDA BEEN LUMPED IN IN TERMS OF HOW MUCH WE GET BACK.

BUT, YOU KNOW, IT'S, IT'S A REALLY CHALLENGING, UM, POSITION WE'RE IN AND JUST WANNA EXPRESS MY GRATITUDE TO SUPERVISOR KOENIG FOR TRYING TO, YOU KNOW, PUT SOME EFFORT INTO US BEING ABLE TO HAVE THAT RATE CHANGED.

BUT ADDITIONALLY, YOU KNOW, UM, SUPERVISOR KOENIG BROUGHT UP CORE AND I WANTED TO SPEAK TO THAT BECAUSE, UM, AS A MEMBER OF THE SUBCOMMITTEE, SUPERVISED DE SERPA AND I HAVE BEEN HAVING THESE CONVERSATIONS.

WE RECENTLY MET WITH STAFF.

AND I DO THINK THAT BASED ON THE DIRECTION AND THE ACTIONS THAT WERE TAKEN LAST YEAR THE COUNTY, THE, THE, THE BOARD DID INDICATE THAT THEY WANTED TO MOVE TOWARDS A TWO YEAR FUNDING STREAM OR, AND I THINK THAT THERE WAS A LITTLE BIT OF DISCREPANCY BETWEEN OUR INTERPRETATION STAFF'S INTERPRETATION, BUT I THINK THE SUBCOMMITTEE IS IN ALIGNMENT WITH WHAT SUPERVISOR KOENIG IS RECOMMENDING IN TERMS OF BRINGING THAT BACK, UM, AND POTENTIALLY REDUCING THOSE CONTRACTS TO EITHER NO MORE THAN TWO YEARS OR EVEN LESS THAN THAT, JUST GIVEN THE IMPACTS THAT WE'RE FACING.

WHEN THOSE DECISIONS WERE MADE ABOUT CORE FUNDING.

DONALD TRUMP HAD NOT BEEN IN OFFICE YET.

HR1 WAS NOT A REALITY.

AND SINCE THAT DECISION WAS MADE, WE NOW SEE BASED ON THE PRESENTATION TODAY, THAT WE ARE GONNA BE IN A EXTREMELY FISCALLY CHALLENGING TIMES.

AND SO WHAT I MIGHT ASK WHEN THE TIME COMES FOR A MOTION IS THAT MAYBE WE DIRECT STAFF TO WORK WITH THE SUBCOMMITTEE TO DRAFT RECOMMENDATIONS FOR BOARD CONSIDERATION FOR THE NEXT MEETING.

THAT WAY, UM, YOU KNOW, IT'S, IT'S SOMETHING THAT'S NOT COMING OUTTA THE BLUE, BUT, UM, BUT I, I DO AGREE THAT, YOU KNOW, WE HAVE SOME PROGRAMS THAT ARE BEING FUNDED, UM, CURRENTLY WITH CORE THAT I THINK ARE NOT NECESSARILY BASIC NEEDS PROGRAMS. AND GIVEN THESE IMPACTS AND THE NEED TO BACKFILL IT MIGHT BE WORTH US REEVALUATING WHAT PROGRAMS WE DO WANT TO FUND.

IF THERE ARE PROGRAMS THAT WE THINK ARE NOT ESSENTIAL AT THIS MOMENT IN TIME, MAYBE, UM, EITHER REDUCING THOSE FUNDS AFTER THE FIRST YEAR, POSSIBLY THE SECOND YEAR, BUT I THINK IT IS GONNA BE IN ALIGNMENT WITH, YOU KNOW, US CONSIDERING OUR PRIORITIES AT THIS MOMENT IN TIME.

AND, YOU KNOW, WHEN WE WERE TALKING ABOUT, YOU KNOW, IT WAS BROUGHT UP EARLIER TODAY AND IT'S BROUGHT UP IN THIS ITEM AROUND OUR AFFORDABILITY CRISIS AND THE ISSUES THAT WE'RE FACING.

YOU KNOW, THERE'S ONLY TWO WAYS TO SOLVE THE CRISIS THAT WE'RE IN.

WHEN IT COMES TO AFFORDABILITY, YOU EITHER PAY PEOPLE MORE OR YOU REDUCE THE COST OF HOUSING.

AND THE ONLY WAY YOU'RE GONNA REDUCE THE COST OF HOUSING IS BY PUTTING IN HOUSING THAT PEOPLE CAN AFFORD.

UM, OR WE'RE GONNA HAVE TO KEEP PEOPLE'S WAGES UP.

AND SO TO THE EXTENT WE CAN CONTINUE TO BALANCE BRINGING IN THE HOUSING THAT'S GONNA MEET THE CURRENT NEEDS OF THE COMMUNITY, UM, THAT'S REALLY GONNA HELP US

[04:35:03]

UM, AND THEN LASTLY, YOU KNOW, I THINK WE MAY NEED TO GET CREATIVE AROUND, YOU KNOW, TAXATION MEASURES.

UM, I DON'T KNOW CURRENTLY, UM, IF THIS HAS BEEN CONSIDERED, IF IT'S EVEN A THING, BUT IN THE PAST, MY UNDERSTANDING WAS CERTAIN UTILITIES, THERE WOULD BE A TAX THAT WOULD GO BACK INTO THE COUNTY, WHETHER THAT WAS LANDLINES, WHETHER THAT WAS COMCAST, UM, THERE WERE LIKE TAXES AND FEES THAT WOULD COME BACK INTO, UM, INTO LOCAL JURISDICTIONS IN ADDITION TO THE SALES TAX THAT'LL COME FROM RETAIL.

AND MY UNDERSTANDING IS THAT HASN'T BEEN HAPPENING, BUT THE FACT THAT, YOU KNOW, WE, MOST OF US ARE ALL NOW USING STREAMING SERVICES, WHICH ARE TIED TO OUR BANK ACCOUNT WHICH ARE TIED TO ZIP CODES.

YOU KNOW, MAYBE THERE IS AN OPPORTUNITY FOR US TO EXPLORE WHETHER THERE'S, YOU KNOW, STATE LAW THAT CAN BE IMPLEMENTED THAT ALLOWS US TO TAX STREAMING SERVICES AND OTHER TYPES OF COMPANIES SO WE CAN BRING MORE REVENUE, UM, BACK INTO COUNTIES.

SO YEAH, I THINK WE SHOULD TRY TO FIGURE OUT HOW WE CAN WORK TOGETHER TO BE MOST CREATIVE AS POSSIBLE, UM, TO BE ABLE TO ADDRESS SOME OF THESE FISCAL ISSUES BECAUSE THEY'RE DEFINITELY NOT GOING AWAY ANYTIME SOON.

AND, UM, AND WE'RE GONNA HAVE TO GET CREATIVE IN THE CHANGING WORLD.

SO, HAPPY TO PROVIDE ADDITIONAL DIRECTION WHEN THE TIME COMES REGARDING CORE AND ALSO JUST WANT TO HEAR BACK FROM, UM, SUPERVISORS DE SERPA ON THE SUBCOMMITTEE AND, AND OTHERS ON, UM, THOSE TYPES OF PROPOSALS FOR CORE.

THANK YOU.

- FURTHER COMMENTS, SUPERVISOR HERNANDEZ.

- YOU KNOW, ONE OF THE THINGS THAT ALSO WOULD BE GOOD IS, YOU KNOW, EARLIER HERE TODAY WE HAD FOLKS FROM, UM, THE BARGAINING UNITS.

IT'D BE GOOD TO KIND OF ENGAGE 'EM EARLY ON THESE CONVERSATIONS KIND OF BRING THEM ALONG, UH, SO THAT THEY'RE, YOU KNOW, COGNIZANT OF WHAT WE'RE FACING.