Santa Cruz County, CA

- THANK YOU, CHAIR MARTINEZ AND MEMBERS OF THE BOARD AND GOOD MORNING.

I AM JOINED TODAY BY MARCUS PIMENTEL, WHO IS THE COUNTY BUDGET MANAGER AND WE ARE PLEASED TO PRESENT OUR PROPOSED BUDGET FOR FISCAL YEAR 2026-27.

SO I WANT TO START THIS MORNING BY JUST REITERATING WHAT THE COUNTY IS AND WHAT WE DO.

I KNOW THIS IS NO SURPRISE TO ANY OF YOU.

YOU'VE HEARD THIS MANY TIMES, BUT THE COUNTY OF SANTA CRUZ REALLY IS BOTH A CITY AND A COUNTY.

YOU'VE HEARD US STATE THIS MANY TIMES.

WE PROVIDE MUNICIPAL SERVICES FOR OVER HALF OF THE COUNTY POPULATION AND WE SERVE AS A SAFETY NET FOR ALL.

SO THIS PROVIDES A TUG AND PULL FOR US BETWEEN HAVING TO BE BOTH TO OUR COUNTY RESIDENTS.

THIS IS A BALANCED BUDGET THAT WE PRESENT TODAY AND WE'VE DEVELOPED IT, DEVELOPED IT UNDER ONE OF THE MOST CHALLENGING FISCAL CONDITIONS THAT I'VE EVER FACED.

I'VE LIVED AND WORKED THROUGH THE GREAT RECESSION, THE COVID-19 PANDEMIC AND MANY DISASTERS AS HAS MARCUS.

THIS BUDGET THAT WE PRESENT TODAY PROTECTS THE WORKFORCE.

WE HAVE ALMOST 60 POSITIONS THAT WE ARE PROPOSING TO ELIMINATE FROM THE BUDGET, BUT IT CONTAINS NO LAYOFFS AT THIS TIME.

WE CONTINUE TO PRIORITIZE INVESTMENTS IN AFFORDABLE HOUSING.

WE'RE INVESTING IN MODERNIZING COUNTY OPERATIONS.

WE'VE INVESTED IN VARIOUS NATURAL RESOURCES, WILDFIRE RESILIENCY AND HOMELESS RESPONSE.

AND IT ALSO RELIES HEAVILY ON ONE-TIME RESOURCES, WHICH WE'RE GOING TO TALK ABOUT.

IT INCLUDES $43 MILLION IN ONE-TIME RESOURCES, THE MAJORITY OF WHICH ARE DEDICATED RESERVES FOR OUR HEALTH AND HUMAN SERVICES DEPARTMENTS.

WE TOOK $31 MILLION FROM THOSE DEDICATED RESERVES FOR THOSE DEPARTMENTS.

AND WE'RE GONNA TALK MORE ABOUT THAT, BUT THAT'S PRIMARILY RELATED TO HAVING TO ABSORB H.R. 1 IMPACTS AND THE ADVOCACY WE'RE DOING WITH THE STATE OF CALIFORNIA AROUND THEM PLAYING A ROLE IN PROVIDING, HELPING US PROVIDE A SOLUTION FOR ABSORBING THOSE IMPACTS.

SO TODAY, WHAT THIS MEANS IS, YOU KNOW, WITH THIS BUDGET, WE'VE REALLY TRIED TO BALANCE ALL OF THE NEEDS THAT WE'RE HAVING TO FACE IN TERMS OF BOARD PRIORITIES, COMMUNITY NEEDS, AND WE'RE STARTING THE WORK TO REALLY ADDRESS OUR FISCAL SITUATION AND THE STRUCTURAL CHANGES THAT WE'RE GOING TO HAVE TO MAKE.

SO NEXT SLIDE.

SO WHAT WE'RE GOING TO DO TODAY, I AM GOING TO SET THE STAGE.

MARCUS IS GOING TO THEN TALK ABOUT WHAT'S IN THE BUDGET, HOW IT'S BEEN BALANCED, AND SOME OF THE MORE TECHNICAL ELEMENTS OF THE BUDGET.

AND I'LL CONCLUDE WITH SOME OF THE RISKS AND THE PATH FORWARD AND THE RECOMMENDED ACTIONS.

SO I JUST WANT TO FRAME WHERE WE'VE BEEN AND WHERE WE ARE TODAY.

SO IN FEBRUARY, WE HAD THE MID-YEAR REPORT, WHICH YOU ACCEPTED.

WE TALKED ABOUT THE $23 MILLION PROJECTED DEFICIT FOR FISCAL YEAR 2026-27, AND WHAT OUR LONG-TERM OUTLOOK LOOKS LIKE.

WE HAVE PROJECTED DEFICITS REACHING ABOVE 67 MILLION BY 28-29.

WE RETURNED IN MARCH BECAUSE WE WANTED TO HAVE A DISCUSSION WITH THE BOARD ABOUT CONSIDERING FOUNDATIONAL PRINCIPLES FOR DEVELOPING THE PROPOSED BUDGET.

THIS REALLY SET THE STAGE FOR HOW WE ENGAGED WITH LABOR PARTNERS, ENGAGING WITH OUR COMMUNITY PARTNERS, AND THERE WAS AN ASK ALSO FOR US TO LOOK AT DECLARING A FISCAL EMERGENCY.

WE ARE NOT QUITE THERE YET.

WE ARE PROPOSING A BUDGET THAT IS BALANCED, BUT DEPENDING ON WHAT THE STATE OF CALIFORNIA DOES TO HELP US.

WE MAY VERY WELL BE IN A FISCAL EMERGENCY AND WE'LL BE COMING BACK TO THE BOARD AS WE RECEIVE THE MAY REVISE AND WE WATCH WHAT HAPPENS BETWEEN GOVERNOR NEWSOME AND THE STATE LEGISLATURE IN JUNE TO ADOPT A BUDGET ACT.

SO FINALLY, WE ARE HERE TODAY WITH THE PROPOSED BUDGET.

[01:00:02]

THIS IS A $1.29 BILLION BUDGET ACROSS ALL FUNDS.

IT'S AN $844 MILLION GENERAL FUND BUDGET.

IT CLOSES THE $23 MILLION GAP THAT WE REPORTED TO YOU AT THE MID YEAR THROUGH A VARIETY OF ACTIONS.

WE'VE TAKEN INCLUDING TARGETED NEW REVENUES, $43 MILLION IN ONE TIME FUNDS, SOME ORGANIZATIONAL CHANGES AND NO LAYOFFS.

IT HAS BEEN GUIDED AND BUILT UPON OUR FOUR FOUNDATIONAL BUDGET PRINCIPLES, WHICH I WANT TO GO THROUGH NEXT.

[PAUSE] SO JUST TO REMIND THE BOARD, THESE ARE THE FOUR FOUNDATIONAL PRINCIPLES THAT YOU CONSIDERED AND APPROVED IN MARCH.

THE FIRST WAS REALLY FORMING A BUDGET THAT FUNDS ARE MANDATED SERVICES FIRST.

IT ALSO PRIORITIZES POSITIONS AND SERVICES THAT ARE REVENUE GENERATING AND TRIES TO PROTECT TO THE EXTENT POSSIBLE THOSE SERVICES AND POSITIONS THAT GENERATE THOSE REVENUES.

A LOT OF THOSE ARE IN OUR HEALTH AND HUMAN SERVICES DEPARTMENTS.

SECONDLY, IT PRIORITIZED BALANCING THE IMPACTS IN COUNTY DEPARTMENTS AND OTHER SECTORS SO THAT THERE WAS NOT A DISPROPORTIONATE SHARE ABSENT SOME POLICY RATIONALE.

SO WE'RE TRYING TO BALANCE BOTH WHERE WE SEE REDUCTIONS IN COUNTY DEPARTMENTS AND WHERE WE SEE REDUCTIONS IN COMMUNITY.

IT ALSO TOOK A LOOK AT WORKLOAD AND COST SHIFTS AND WHERE DISCRETIONARY SERVICES MUST CONTINUE IDENTIFYING OFFSETS TO THOSE, WHETHER THEY BE FROM GRANTS, FEE ADJUSTMENTS, COST RECOVERY AND INTERAGENCY COST SHARING.

SO, PROBABLY A GOOD EXAMPLE OF THAT WILL BE IN OUR COUNTY PARKS DEPARTMENT.

AND THEN LASTLY, FOR THE LAST PILLAR, WE TRIED TO CLOSE THE STRUCTURAL GAP THROUGH RESTRAINING OUR EXPENSES, IDENTIFYING NEW REVENUES AND SHORT-TERM MEASURES THAT WEREN'T ALO- COULD NOT ALONE CLOSE THE GAP TO REACH THE BALANCED BUDGET.

SO WE ARE TRYING TO BUILD FISCAL CAPACITY AND RESILIENCE THROUGH THE BUDGET THAT WE PROPOSED TODAY.

THE FOURTH PRINCIPLE IS REALLY THE HARDEST BECAUSE WE'VE HAD TO DRAW ON RESERVES.

NEXT SLIDE.

THIS IS OUR TIMELINE THAT WE'VE GONE THROUGH TO DEVELOP THIS BUDGET.

WE ARE NOW IN MAY, EARLY MAY, WE'RE PROPOSING THE BUDGET.

WE ARE GOING TO RETURN IN JUNE.

THIS IS THE FIRST OF SEVERAL BUDGET HEARINGS.

SO WE HAVE BUDGET HEARINGS ON JUNE 10TH AND 11TH WITH DEPARTMENTS.

AND THEN OUR LAST DAY FOR BUDGET HEARINGS WILL BE ON JUNE 24TH.

THAT'S WHEN THE BOARD WOULD BE ASKED TO APPROVE THEIR PROPOSED BUDGET.

AND THEN AT YEAR END IN JULY, GOING IN SEPTEMBER, WE GO THROUGH A SERIES OF ACTIONS TO CLOSE OUT THE FISCAL YEAR, ROLL OVER ENCUMBRANCES AND CONTRACTS FROM ONE FISCAL YEAR TO THE NEXT THAT CONTINUE.

AND WE WILL RETURN WITH THE FINAL BUDGET IN SEPTEMBER FOR BOARD ACTION AND ADOPTION.

[RUSTLES] SO WITH THAT, I'M GOING TO TRANSITION IT TO OUR BUDGET MANAGER, MARCUS PIMENTEL.

MARCUS PIMENTEL, YOUR COUNTY BUDGET MANAGER.

THANK YOU, NICOLE.

[PAUSE] THIS IS A CHALLENGING BUDGET AS OUR CEO EXPLAINED.

IT'S PROBABLY ONE OF THE WORST, NOT QUITE THE WORST, BUT IT'S ONE OF THE MOST CHALLENGING WITH THE FEDERAL POLICY CHANGES THAT CONTINUE TO IMPACT OUR OPERATIONS AND OUR INHERENT THAT WE'VE DOCUMENTED OVER THE LAST SEVERAL YEARS, OUR INHERENT UNDERFUNDING, SYSTEMATICALLY UNDERFUNDED AND PROPERTY TAX ALLOCATION, THE EROSION OF SOME OF OUR REVENUES AND SALES TAX COMBINED TOGETHER WITH THE FEDERAL POLICY CHANGES.

IT'S REALLY PUT US IN A DISADVANTAGED POSITION.

YOU LAYER IN THE, WHAT WAS A ALMOST AN ANNUAL EMERGENCY DISASTER OF ONE TYPE OR ANOTHER THAT WE'VE HAD TO RESPOND TO WITH A VERY SMALL WORKFORCE AND VERY LIMITED RESERVES.

IT'S REALLY PUT US AT ONE MOMENT IN TIME WHEN WE'RE VERY, VERY CONSTRAINED WITH OUR ABILITY TO MOVE FORWARD WITH...

[STUTTERING] WITH A LONG-TERM SOLUTION IN THIS MOMENT.

[01:05:01]

SO THAT'S WHY SOME OF THE NATURE OF THIS IS ATYPICAL AND THE USE OF RESERVES WHILE IT'S IN THIS MOMENT, IT'S VERY TYPICAL.

WHEN WE LOOK AROUND OUR COUNTY PEERS, THEY'RE NOT ONLY TAPPING INTO RESERVES, THEY'RE GOING WITH A BIGGER ALLOCATION.

WE'RE TRYING TO BE PRUDENT AND NOT GOING AS BIG AS SOME OF OUR PEERS.

SO IT'S JUST A CHALLENGING MOMENT THAT WE'RE IN.

AND YET WE'RE ALSO CONTINUING THE WORK.

YOU MIGHT REMEMBER JUST A YEAR AGO, WE WERE CONSIDERING AND THEN ULTIMATELY...

APPROVED A BUDGET THAT HAD NEARLY 70 POSITIONS REDUCED ABOUT $11 MILLION OF VALUE THAT WAS ADDED BACK LARGELY IN OUR HEALTH SERVICES AGENCY.

THAT WAS WORK THAT WE DID LAST YEAR WITH KNOWING THE CHALLENGES THAT WE ARE FACING NOW.

AND WE WERE IN FRONT OF YOU THIS YEAR WITH ANOTHER...

EQUIVALENT SIZE OF WORKFORCE REDUCTION.

SO THAT'S THE STAGE THAT WE'RE IN.

AND I WANT TO DO TAKE A MOMENT BECAUSE IT'S TOO EASY TO CELEBRATE SOME GOOD WORK THAT'S BEING DONE BY MY PEERS AROUND ME.

BUT WE DID PUBLISH OUR ONLINE BUDGET ON TIME.

IT'S ACCESSIBLE NOT ONLY IN A LAPTOP FORMAT OR ANY FORMAT.

YOU CAN VIEW OUR BUDGET AND SEAMLESSLY ON ANY DEVICE.

THE BUDGET CONVERTS TO THE SIZE OF YOUR DEVICE.

IT'S VERY INTERACTIVE.

THERE ARE TABLES AND CHARTS THAT ALLOW USERS TO DRILL DOWN AND GET LEVELS OF ACCESS AND CLARITY AND TRANSPARENCY THAT MOST OF OUR PEERS, COUNTIES, AND VERY FEW CITIES ACROSS THE COUNTRY HAVE.

AND WE'RE REALLY PROUD OF THE EFFORT THAT'S BEEN DONE TO CUSTOM BUILD A VERY TRANSPARENT AND VERY INTERACTIVE AND VERY LOW BAR, EASY ACCESSIBLE RESOURCE FOR MEMBERS OF OUR COMMUNITY.

SO WHAT IS IN THIS BUDGET? WE'VE GOT A $1.29 BILLION BUDGET.

AND WE END UP TALKING MOST OF THE TIME ABOUT OUR $844 MILLION GENERAL FUND.

AND I DON'T WANT TO GLOSS OVER, WELL, WHAT ELSE IS IN OUR ENTIRE BUDGET? IT'S LARGELY OPERATIONS LIKE OUR SEWERS, SYSTEMS, OUR CSA ROADS, AND SUPPORT ZONES ACROSS THE COUNTY.

IT'S SOME OF OUR UNIQUE FUNDING STRUCTURE.

WE ARE SELF-INSURED FOR PROPERTY AND LIABILITY CLAIMS. SO SOME OF THE OTHER FUNDS OUTSIDE OF THE GENERAL FUND INCLUDE OUR PROPERTY AND LIABILITY FUND, OUR WORKERS' COMPENSATION FUND.

WE INCLUDE THE REMNANTS OF THE FORMER REDEVELOPMENT AGENCY IN THE $1.29 BILLION BUDGET, NOW CALLED THE REDEVELOPMENT SUCCESSOR AGENCY, VALUED AT ABOUT $15 MILLION.

SO WHILE THERE ARE BIGGER AMOUNTS BEYOND THE GENERAL FUND, THOSE ARE RESTRICTED FUNDING SOURCES FOR A VERY UNIQUE, NARROW PURPOSE THAT WE CAN'T USE THAT IN ANY OTHER WAY VERSUS THE GENERAL FUND, WHICH IS $844 MILLION OF SOME MANDATES, CERTAINLY, AS AN EXTENSION OF THE FEDERAL GOVERNMENT AND THE STATE GOVERNMENT, AND DELIVERY OF HEALTHCARE SERVICES, AND THE DELIVERY OF MEDI-CAL, AND DELIVERY OF COUNTYWIDE SERVICES.

THERE ARE A LOT OF MANDATES IN THAT $844 MILLION, BUT THERE IS SOME DISCRETIONARY COMPONENT OF IT.

SO THAT'S WHY WE END UP SPENDING MOST OF OUR TIME AROUND THE GENERAL FUND.

INCLUDED IN OUR TOTAL COUNTY IS 2,682.28 FTE.

THAT'S OUR FULL-TIME EQUIVALENT OF POSITIONS.

WE HAVE A LOT OF STAFF ACROSS THE COUNTY WHO MIGHT WORK IN DIFFERENT LEVELS OF STAFFING, HALF-TIME, PART-TIME, FULL-TIME.

AND SO WE END UP WITH AN EQUIVALENCY NUMBER OF FUNDED STAFFING.

WE'RE DOWN 57.88 POSITIONS.

THAT'S A NET NUMBER.

THERE ARE A FEW ADS THAT WE'LL TALK ABOUT A LITTLE BIT LATER.

WE'RE STILL LOOKING AT A REDUCTION OF ABOUT 70 POSITIONS ACROSS THE COUNTY.

BUT NETTED TO 57.88.

AND AS CEO COBURN TALKED ABOUT, AND I'LL TALK ABOUT IT A LITTLE BIT MORE, WE ARE REDUCING OUR RELIANCE ON RESERVES DOWN TO 10.4%, JUST ABOVE THE BOARD'S MINIMUM THRESHOLD, SHORT OF OUR POLICY THRESHOLD, OUR TARGET OF 15%.

AGAIN, WE'LL...

MORE DISCUSSION ON THE RESERVES, BUT FROM A BUDGETARY STANDPOINT, WE'RE RELYING ON THAT TO BALANCE OUR BUDGET.

OUR AIM AND OUR GOAL IS THAT WE AVOID USING SOME OF THOSE RESERVES BECAUSE THEY'RE CRITICAL TO DELIVERY AND INSURANCE OF SERVICES.

THEY'VE PROVEN CRITICAL IN THE RESPONSE TO EMERGENCY DISASTERS.

SO WE'LL TALK A LITTLE BIT MORE JUST ABOUT THOSE USES.

AND IT'S IMPERATIVE TO SAY THAT THERE'S AN INTENT BEHIND THE USE OF RESERVES, LARGELY H.R. 1, LARGELY TO SUSTAIN MEDI-CAL SERVICES, MEDICARE SERVICES, HEALTH AND HUMAN SERVICES.

BUT IT'S ALSO TO PROTECT OUR CORE PUBLIC SAFETY SERVICES.

WELL, YOU'LL SEE THAT IN A COMING SLIDE ABOUT THE INVESTMENT WE'RE DOING TO AVOID LAYOFFS ACROSS OUR PUBLIC SAFETY SECTOR.

SO WE'RE AVOIDING LAYOFFS, AND THAT'S A BONUS RIGHT NOW IN THIS MOMENT IN TIME.

[PAUSE] AS A SNAPSHOT OF OUR GENERAL FUND REVENUES, WE ARE PROJECTING, THERE'S SOME RED ON THE BOARD, BUT WE ARE PROJECTING OPTIMISTIC AND CREDIBLE GROWTH ACROSS OUR TAX BASES, PROPERTY TAX, SALES TAX.

OUR TAXES IN GENERAL, WE'RE PROJECTING ABOUT A 4.5% INCREASE, SO THAT'S A GOOD NUMBER OF GROWTH.

WE LIKE THE GROWTH.

FROM A SYSTEMATICALLY UNDERFUNDED PERSPECTIVE,

[01:10:01]

WE'VE DOCUMENTED IN THE PAST WHERE IF WE HAD OTHER AGENCIES, PROPERTY TAX BASES, ALLOCATION NUMBERS, NOT ANY NEW TAXES ON THE RESIDENTS, JUST HOW MUCH WE GET AS A COUNTY, WE'RE ONE OF THE LOWEST ALLOCATED PROPERTY TAX IN THE STATE.

MOST, 90% OR SO OF COUNTIES, GET A GREATER SHARE OF THEIR LOCAL PROPERTY TAX.

WE GET 13 CENTS ON THE DOLLAR.

[STUTTERING] WE'RE WAY NEAR THE BOTTOM.

AS A COMPARATOR, COMPARED TO, LIKE, THE COUNTY OF MONTEREY, THAT COULD BE $30 MILLION TO $40 MILLION TO $50 MILLION A YEAR OF REVENUE IF WE JUST HAD THE SAME ALLOCATION FACTOR.

NO CHANGE IN TAX RATE, NO NEW TAXES JUST TO HOW IT'S ALLOCATED.

SO WE ARE SYSTEMATICALLY CHALLENGED IN OUR TAX BASE, BUT WE ARE STILL PROJECTING SOME GROWTH IN OUR PROPERTY TAX REVENUES.

WE ARE PROJECTING GROWTH IN OUR SALES TAX.

JUST THE GROWTH IS NOT GREAT ENOUGH TO OFFSET SOME ECONOMIC FACTORS THAT WE'RE FACING.

WE ARE SEEING ARE PROJECTING A DECLINE IN OUR INVESTMENT EARNINGS.

THAT'S AN ECONOMIC FACTOR AS MARKET INTEREST RATES, AS THE FEDERAL FOMC IS CONSIDERING A RATE REDUCTION.

WE'RE BUILDING THAT INTO OUR ASSUMPTION THAT BY-OVER THE NEXT 18 MONTHS, BEGINNING JULY OF 2026, WE MAY SEE A RATE REDUCTION THAT WILL REDUCE SOME OF OUR EARNINGS CAPABILITY.

AND AS WE'RE USING RESERVES, OUR CASH BALANCE IS LOWER THAT WE'RE ABLE TO INVEST IN.

SO WE ARE SEEING A LITTLE BIT OF AN IMPACT IN USE OF MONEY AND PROPERTY.

OUR INTERGOVERNMENTAL REVENUE, WE ARE SEEING SMALL DECLINES IN OUR FEDERAL RESOURCES AND STATE RESOURCES, BUT WE'RE LARGELY DOING A BUDGET ADJUSTMENT IN OUR OFFICE OF EMERGENCY RESPONSE AND RESILIENCY, WHERE WE USED TO PROJECT OUT AND BOOK TOTAL GRANT REVENUE.

AND THIS YEAR, WE'RE STARTING AT ZERO AND RECOGNIZING REVENUE AS IT COMES IN, INSTEAD OF MISSING, UNDERVALUING, OR OVERVALUING THE REVENUE.

SO THAT'S JUST A BUDGET CHANGE.

THAT'S ABOUT $9.3 MILLION OF THE INTERGOVERNMENTAL DECLINE.

- HEY, MARCUS, I WANT TO KNOW ON...

YOU SEE THERE, SALES TAX IS SOFTENING.

AND SO, AS... ALSO AS PART OF THAT, IT'S IMPORTANT TO POINT OUT, WE LOSE SALES TAX REVENUE TO OUTSIDE OUR COMPANY, OUTSIDE OUR COUNTY BECAUSE OF THE DISTRIBUTION CENTERS.

SO THAT IS SOMETHING THAT WE WANT TO TRY TO LOOK AT AND THAT WE'RE TRYING TO FIGURE OUT HOW WE CAN PARTNER WITH, WHETHER IT'S THE LEAGUE OF CITIES OR OTHERS, TO TRY TO ADVOCATE TO GET MORE OF THAT BACK.

I THINK WE'RE LOSING ABOUT $10 MILLION ANNUALLY. - CLEARLY.

YEAH.

THERE'S DIFFERENT ELEMENTS OF THAT, BUT IT'S JUST THE ONLINE THAT EVERYBODY'S DOING.

OUR STATE REGULATIONS HAVEN'T CAUGHT UP TO THIS MODEL THAT'S ALREADY BEEN AROUND FOR ALMOST 20 YEARS.

IT'S JUST, THEY'RE A LITTLE SLOW, AND THAT'S PENALIZING US BECAUSE WE HAVE A VERY SMALL SHARE OF RETAIL SPACE IN THE COUNTY, WHICH SOME OF THE ALLOCATION MODELS PENALIZE US FOR HAVING LESS RETAIL ACROSS THE COUNTY.

[PAUSE] ALSO INCLUDED IN OUR BUDGET IS THE ONGOING MEASURE K SPENDING AUTHORIZATION.

THE BOARD HAS SET THEIR PRIORITIES IN HOW TO ALLOCATE ABOUT HALF OF OUR MEASURE K ALLOCATION.

AND SO WE'RE RETAINING THOSE SAME ALLOCATIONS IN THIS CURRENT BUDGET.

WE DO HAVE A MEASURE G SELF-TAX THAT COMES IN AND SUPPORTS GENERAL DEPARTMENTS AS A GENERAL REVENUE SOURCE.

[PAUSE] THIS IS STARTING TO GET INTO THE REAL POLICY AREA OF THE BUDGET ABOUT HOW WE SUPPORT AND WHERE OUR INVESTMENTS GO IN OUR GENERAL FUND.

WE END UP HAVING ABOUT $250 MILLION, THEREABOUTS, OF...

[STUTTERING] TAX BASE THAT WE CAN ALLOCATE AND MAKE DISCRETION ON WHERE WE INVEST THAT.

MOST OF OUR INVESTMENT GOES INTO OUR PUBLIC SAFETY AND JUSTICE DEPARTMENTS.

$0.62 OF EVERY DOLLAR THEY SPEND IS SUPPORTED AS AN INVESTMENT FROM THE GENERAL FUND, AND WHETHER THIS YEAR A PORTION OF THAT IS OUR TRADITIONAL GENERAL FUND SUPPORT, YOU'LL SEE SOME BARS IN RED THAT RECOGNIZE THE USE OF ONE-TIME FUNDS.

THE BARS IN RED ARE LARGELY IN PUBLIC SAFETY AND JUSTICE AND SOME DEDICATED RESOURCES, ESPECIALLY IN THE HEALTH DEPARTMENT, WHERE THEY HAVE SOME RESERVES THAT ARE DEDICATED FOR SERVING THEIR POPULATION, MEDI-CAL POPULATIONS.

SO YOU'RE SEEING THE LARGEST INVESTMENT CONTINUE TO BE IN PUBLIC SAFETY AND JUSTICE, BY FAR OUTPACING ANY OTHER CATEGORY ACROSS THE COUNTY.

THIS YEAR, THE USE OF RED IS A NEW ELEMENT.

WE HAVEN'T HAD TO USE RESERVES ON AN ONGOING BASIS TO PLUG OUR BUDGET.

BUT AGAIN, H.R. 1, THIS MOMENT THAT WE'RE IN, THE CHALLENGES IN RETAINING CORE KEY SERVICES AND THE DESIRE TO TRY TO LIMIT AND AVOID LAYOFFS, WHILE WE'RE STILL MOVING FORWARD, WE ARE STILL HAVING A LOT OF WORK AHEAD OF US TO CONTINUE TO RIGHT-SIZE OUR BUDGET.

SO TODAY IS THE FIRST PRESENTATION OF THE PLAN, BUT STAFF WILL CONTINUE TO WORK TO FIND EFFICIENCIES AND SAVINGS THROUGHOUT THE YEAR.

[PAUSE] LOOKING AT OUR GENERAL FUND EXPENSES FROM A YEAR, FROM COMPARING TO OUR ADOPTED BUDGET, BUDGET-TO-BUDGET,

[01:15:01]

ADOPTED BUDGET OF THE CURRENT YEAR THAT THE BOARD APPROVED IN SEPTEMBER OF 2025, TO WHAT WOULD START IN THE PROPOSED BUDGET ON JULY OF 2026, OUR GREATEST INCREASE IS IN SALARIES AND BENEFITS, ALMOST AN 8% INCREASE, $33 MILLION.

A LOT OF IT IS JUST OUR ONGOING INVESTMENT IN STAFFING AND RESOURCES TO CONTINUE TO RETAIN AND COMPETE IN THIS MARKETPLACE.

WE'VE TALKED A LOT ABOUT THIS.

THIS IS THE UNDERLYING COST PRESSURE WITHIN OUR FORECAST MODEL, BUT DIFFERENT THAN H.R. 1, WHERE H.R. 1 IS HAPPENING TO US, THIS IS SOMETHING WE'RE INVESTING IN TO RETAIN OUR WORKFORCE, TO BE ABLE TO SUPPORT AND DELIVER KEY SERVICES TO OUR COMMUNITY.

THE ANOMALY ON THE REDUCTION SIDE, THE OTHER FINANCING, THAT'S A REFLECTION OF CAPITAL PROJECTS THAT IN THE ADOPTED BUDGET LAST SEPTEMBER, WE CARRY OVER CAPITAL PROJECTS THAT HAVEN'T BEEN FINISHED EVERY YEAR, SO IT BULKS UP THE ADOPTED BUDGET.

WE HAVEN'T REDUCED ACTUAL OTHER FINANCING.

IT'S JUST WE HAVEN'T CARRIED OVER THOSE CAPITAL PROJECTS YET IN THE NEW BUDGET, SO THAT WILL COME FORWARD IN SEPTEMBER, AND YOU'LL SEE A MORE NORMALIZED, [STUTTERING] PROBABLY A LITTLE BIT SMALLER OF A CAPITAL INVESTMENT IN OUR OTHER FINANCING SOURCES.

AGAIN, OUR LARGEST COST DRIVER IS OUR LABOR AND SALARY AND BENEFITS.

[PAUSE] WE'RE NOW SLICING THIS IN A DIFFERENT WAY, AND YOU SAW THE INVESTMENT A FEW SLIDES BACK OF WHERE OUR GENERAL FUND SUPPORT GOES.

THIS IS NOW LOOKING AT THE COST OF DEPARTMENTS AND HOW THEY'RE FUNDED, SO IF YOU LOOK AT OUR HEALTH AND HUMAN SERVICES DEPARTMENT, THEY HAVE BY FAR THE GREATEST SPEND WITHIN THE GENERAL FUND, ECLIPSING $500 MILLION ANNUALLY, BUT THEY HAVE A LOT OF GREEN BEHIND THEM.

THEY'RE ALMOST 90 CENTS ON THE DOLLAR FUNDED BY FEDERAL AND STATE REVENUE SOURCES VERSUS SOME OF OUR OTHER DEPARTMENTS WHO ARE MORE RELIANT, AGAIN, ON THE GENERAL FUND, LESS GREEN, LESS CHARGES FOR SERVICES, LESS INTERGOVERNMENTAL REVENUE AS A WAY OF ILLUSTRATING THE DIFFERENCE WITHIN OUR PUBLIC SAFETY SECTOR.

28 CENTS ON THE DOLLARS FROM STATE AND FEDERAL FUNDING VERSUS 86 CENTS FROM HEALTH AND HUMAN, SO YOU CAN REALLY SEE HOW THE HEALTH AND HUMAN SERVICE DEPARTMENTS LEVERAGE FEDERAL FUNDING TO PROVIDE AND DELIVER AND SUSTAIN SERVICES HERE AND WHY IT WAS SO CRITICAL TO CONTINUE SOME OF THOSE SERVICES, USE SOME OF THOSE RED BAR RESERVES TO SUSTAIN THEIR SERVICES, AND IN FACT, SOME OF THEIR RESERVES ARE INTENDED TO SUSTAIN SERVICES IN TIMES LIKE THIS, SO THERE'S A SPECIFIC ONE-TO-ONE CORRELATION BETWEEN THE USE OF THEIR RESERVES AND HEALTH AND HUMAN AND SUSTAINING SERVICES.

THE PUBLIC SAFETY COMMITMENT IS JUST TRYING TO LIMIT THE MINIMUM STAFFING TAKEN EVEN LOWER ACROSS ALL OF, WHETHER IT'S OUR SHERIFF'S DEPARTMENT OR DISTRICT ATTORNEY OR PUBLIC DEFENDER, ANY OF THE PUBLIC SAFETY DEPARTMENTS WE'RE TRYING TO RETAIN OUR CORE SERVICES.

[PAUSE] SO NOW DRILLING DOWN A LITTLE BIT INTO OUR WORKFORCE, AGAIN, A NET 57.88 REDUCTION.

IN TOTAL, WE'RE ELIMINATING 71.4 POSITIONS ACROSS THE COUNTY.

WE'RE ADDING 13.5, SO WE'RE GETTING A NET HERE, AND THE ADDS ARE IN THE PUBLIC SAFETY AND JUSTICE DEPARTMENT.

LARGELY, WE HAVE NINE POSITIONS BETWEEN THE SHERIFF AND THE PUBLIC DEFENDER, THREE IN THE SHERIFF'S OFFICE TO HELP SUPPORT THEIR DNA LAB, WHICH HAS FUNDING BEHIND IT, AND A NET FIVE BEING ADDED FOR THE PUBLIC DEFENDER FOR THE TRANSITION INTO THEIR ALTERNATE PUBLIC DEFENDER OFFICE INTO THE COUNTY FROM A FORMER CONTRACTED SERVICE.

SO THAT'S THE LARGEST DELTA WE HAVE IN ADDING POSITIONS, BUT ACROSS THE BOARD, DEPARTMENTS ARE DOWNSIZING ACROSS OUR CATEGORIES.

IT IS IMPORTANT TO NOTE THAT IN LATE FALL, AND REEMPHASIZED WITH THE MIDYEAR, THE COUNTY HAS IMPLEMENTED A HIRING FREEZE TO TARGET CERTAIN POSITIONS THAT MIGHT HAVE A NET COST, MIGHT NOT HAVE FUNDING BEHIND THEM, OR MIGHT HAVE ALTERNATIVE SERVICE DELIVERY MODELS.

THERE ARE CLEAR CRITERIA THAT ALLOW FOR REVENUE-GENERATING POSITIONS, THAT ALLOW FOR US TO CONTINUE TO FILL ESSENTIAL KEY POSITIONS, BUT WE ARE TRYING TO TARGET POSITIONS THAT WE CAN HOLD ONTO BECAUSE WE HAVE MORE WORK AHEAD.

OUR AIM IS TO AVOID LAYOFFS, AND BY DOING THAT, WE'LL NEED TO CONTINUE TO FIND MORE VACANCIES THAT WE MIGHT BE ABLE TO FIND OPPORTUNITY AND HOLD AND FIND DIFFERENT WAYS OF DELIVERING SERVICES MOVING FORWARD.

[PAUSE] SO HOW WE BALANCE THE BUDGET IS A COMBINATION, AS WE TALKED ABOUT IN OUR MIDYEAR, OF COST REDUCTIONS, REVENUES, AND ONE-TIME RESOURCES.

WE'VE TALKED A LOT ABOUT OUR ONE-TIME RESOURCES.

I COVERED A LITTLE BIT OF OUR COST REDUCTIONS.

SO I WANT TO FOCUS IN OUR REVENUE ACTIONS.

WE ARE GLAD TO SEE A LOT OF CREATIVE

[01:20:01]

AND THOUGHTFUL PLANNING SOLUTIONS ACROSS OUR DEPARTMENTS, LARGELY IN OUR HEALTH DEPARTMENT, WHO HAVE THE ABILITY TO INCREASE THEIR CHARGES THROUGH MEDICAID AND MEDICARE.

THAT IS AT A STATE AUTHORIZATION LEVEL, NOT NECESSARILY AT A FEDERAL LEVEL.

SO THIS IS SOMETHING LARGELY CONTROLLED BY THE STATE THAT IS A NORMAL PROCESS WHEN COSTS FOR DELIVERY OF MEDI-CAL AND MEDICAID SERVICES GO UP, THERE'S AN OPPORTUNITY TO APPEAL FOR A RATE INCREASE.

THE DEPARTMENT IS ACTIVELY PURSUING THAT.

WE VALUE THAT CLOSE TO UP TO $8 MILLION.

A FLOOR OF $4 MILLION IS BUILT INTO THIS BUDGET.

BUT WE THINK ONGOING, IT COULD GENERATE UP TO $8 MILLION ANNUALLY.

SO THAT'S A REALLY GOOD OPPORTUNITY THAT THE HEALTH AND SERVICES AGENCY IS ACTIVELY AND AGGRESSIVELY PURSUING.

TYPICALLY, THERE'S A LITTLE TIME TO LAG FOR GOVERNMENT TO ACT.

BUT THE BENEFIT OF THAT RATE INCREASE IS THEY'RE GENERALLY RETROACTIVE.

SO EVEN THOUGH ACTION MIGHT BE TAKING IN OCTOBER OR JANUARY OF 2027, IT COULD BE RETROACTIVE, IT SHOULD BE RETROACTIVE TO JULY OF 2026.

SO THAT'S A VERY STOUND APPROACH.

BUT WITH THE RISKS IN THIS MOMENT, WE'VE BACKED SOME OF THAT BY THE USE OF HEALTH SERVICES RESERVES.

SO WE HAVE A CUSHION IN CASE THAT REVENUE IS SLOWER OR DOWNSIZED.

WE'VE ALREADY BUILT INTO THE BUDGET AN ALLOWANCE FOR USE OF THEIR RESERVES IN THE HEALTH DEPARTMENT.

BUT THAT'S A GOOD EXAMPLE, A GREAT EXAMPLE, OF LOOKING AT OTHER OPPORTUNITIES TO BALANCE OUR BUDGET.

WE'RE ALSO INCLUDING THE PARKS DEPARTMENT IS LOOKING AT A PILOT PROGRAM FOR PARKING ACROSS CERTAIN TARGETED DEPARTMENTS.

IT COULD GENERATE IN THE LOW END MAYBE $300,000 OR $400,000.

BUT IT'S, AGAIN, ANOTHER EXAMPLE.

AND THIS BOARD HAS TAKEN RECENT ACTION IN THE LAST YEAR IN LOOKING AT TARGETED AREAS WITHIN OUR PLANNING DEPARTMENT OF FEES THAT ARE BELOW MARKET OR BELOW COST AND FINDING OPPORTUNITY TO INCREASE THOSE.

SO, THOSE ARE EXAMPLES ON THE REVENUE SIDE.

IN MOMENTS LIKE THIS, IT TAKES A COMBINATION OF EVERYTHING.

YOU KNOW, REVENUES, STATE ADVOCACY, FEDERAL ADVOCACY, MANAGING OUR COSTS WELL, MAKING SOUND LONG-TERM INVESTMENT DECISIONS.

SO THE THIRD PILLAR THAT WE'VE TALKED A LOT ABOUT, AND I'LL TALK A LITTLE BIT MORE IN THE NEXT SLIDE ABOUT REDUCED RESERVES, AGAIN, IT'S A PLAN TO USE.

OUR AIM WOULD BE NOT TO AVOID LIMITING HOW MUCH IS ACTUALLY PULLED OUT OF OUR RESERVES BECAUSE WE'RE AT A VERY THIN LEVEL FROM OUR CURRENT RESERVE STRUCTURE.

AGAIN, LOOKING AT OUR HISTORICAL RISK FROM AGING INFRASTRUCTURE, AGING FACILITIES, ENVIRONMENTAL RISK, DISASTER RISK, OUR KIND OF ISOLATED ECONOMY, WE HAVE A LOT OF RISKS THAT COME UP THAT COULD BE A PRESSURE ON OUR RESERVES.

SO WE'RE REALLY AT A DELICATE POSITION PULLING THAT DOWN.

BUT IT'S SOMETHING THAT, AGAIN, I THINK OUR PEERS ARE LOOKING AT, AND IT MAKES SENSE IN THIS MOMENT, ESPECIALLY WITH H.R. 1.

AND THE GOVERNORS MAY REVISE AS SOON AS THIS FRIDAY, BUT NO LATER THAN NEXT THURSDAY THAT SHOULD LAND AND GIVE US A LITTLE BIT MORE INSIGHT INTO WHAT THE STATE MAY OR MAY NOT DO.

SO LOOKING AT OUR RESERVES, WHEN WE CAME INTO THE BUDGET LAST YEAR, [STUTTERING] WE WEREN'T QUITE AT OUR TARGET OF 15%, BUT 12, 12.5% WAS A GOOD PLACE TO BE.

WE ARE ON- WE WERE MAKING INCREMENTAL PROGRESS TO BRING UP OUR RESERVES.

AGAIN, I'VE MENTIONED THE NEED FOR DISASTER RESPONSE.

I'VE MENTIONED THE NEED FOR AGING FACILITIES.

THAT'S BEEN DEMONSTRATED IN THE LAST YEAR.

IN 2024, WE ISSUED NEARLY $90 MILLION OF DEBT IN A VERY ATYPICAL NEED.

WE HAD DISASTERS IN 2023, STORM DISASTERS, THAT IMPEDED ROADWAYS AND DESTROYED ROADWAYS ACROSS THE COUNTY, LARGELY IN OUR MOUNTAINOUS AREAS THAT REQUIRED INVESTMENT.

AND FEMA FEDERAL HIGHWAY ARE MONTHS, IF NOT YEARS AWAY FROM BRINGING THAT FUNDING HERE.

TYPICALLY, COUNTIES WOULDN'T ISSUE DEBT FOR DISASTER RESPONSE, BUT WE HAD TO IN THE MOMENT BECAUSE OUR RESERVES JUST, WE COULD NOT RELY ON OUR RESERVES, ESPECIALLY WHEN ABOUT HALF OF OUR RESERVES ARE RESERVED FOR, HALF OF OUR RESERVES ARE RESERVED.

ABOUT HALF OF OUR RESERVES ARE DEDICATED FOR THE USE OF HEALTHCARE SERVICES.

SO WE COULDN'T NECESSARILY USE THOSE, THAT PORTION FOR ROADS.

SO WE HAVE ACTUALLY HAVE A VERY SMALL AMOUNT OF WHAT WE CALL BOARD-DIRECTED DISCRETIONARY RESERVES.

SO THAT'S A GREAT EXAMPLE OF...

BECAUSE WE DON'T HAVE SUFFICIENT RESERVES, WE ISSUE DEBT THAT WE'RE GONNA BE PAYING OVER THE NEXT 30 YEARS AT A RATE THAT, WHILE IS ATTRACTIVE IN THE MARKET, IT'S JUST AN ONGOING COST WE HAVE TO USE AND RELY ON.

THE BUDGET PLANS TO GO DOWN TO 10.4% IN OUR RESERVES IN THE CURRENT YEAR.

WHEN WE DIVE A LITTLE BIT DEEPER INTO THAT 10.4%, AGAIN, A PORTION OF OUR RESERVES ARE DEDICATED, HAVE SOME RESTRICTIONS AROUND THEM OR SOME USES LIMITATIONS.

[01:25:01]

THE REALLY TRUE BOARD-RESTRICTED RESERVES ARE GONNA DROP ABOUT $10 MILLION.

AND WHAT THAT REALLY MEANS, WE'RE GETTING CLOSER TO, YOU KNOW, ONE PAYROLL CYCLE.

IT WASN'T TOO LONG AGO, OUR BOARD-DIRECTED RESERVES WERE ABLE TO FUND ABOUT FOUR PAYROLL CYCLES.

WE'RE AT 2.8 IN THE CURRENT BUDGET.

WE'RE GONNA BE DECREASING DOWN TO CLOSER TO TWO PAYROLL CYCLES IN THE CURRENT, IN THE '26, '27 BUDGET SO THAT'S WHERE WE START, AS AN ILLUSTRATIVE EXAMPLE, WE START GETTING A LITTLE NERVOUS ABOUT GETTING DOWN TO THOSE LEVELS.

[PAUSE] AND I'LL FINISH WITH...

OTHER AREAS THAT ARE ILLUSTRATIVE OF A BUDGET.

IT'S MORE THAN JUST THE NUMBERS.

IT'S WHAT WE'RE DELIVERING IN IT.

IT'S WHAT WE'RE INVESTING ACROSS.

SO IF WE LOOK AT KIND OF OUR BUDGET INVESTMENTS IN FOUR DIFFERENT CATEGORIES, AI, ORGANIZATIONAL, MODERNIZATION, WE'RE REALLY EXCITED IN LEADING HARD INTO...

I THINK, ONE OF THE FIRST COUNTIES TO ISSUE AN AI POLICY.

WE'VE BEEN VERY ON THE CUTTING EDGE OF HOW WE MIGHT IMPLEMENT AI.

WE'VE GOT SOME CHATTY BOTS AND CORE COLLECTIONS.

WE'RE DOING A LOT OF INNOVATIVE STUFF IN THE SPACE OF AI, BUT STILL PROTECTING OUR DATA AND PROTECTING OUR SERVICE DELIVERY.

SO THAT'S A GREAT EXAMPLE OF WORK WE'RE DOING BECAUSE WE THINK IT'S GOOD WORK TO DO.

WE'VE ALSO GOT STREAMLINED SANTA CRUZ THAT THIS BOARD IS VERY WELL AWARE OF.

WE'RE DOING RIGHT SIZING AND EFFICIENCIES ACROSS ORGANIZATION WHILE STILL INVESTING IN OUR HOUSING AND AFFORDABLE HOUSING CRISIS THAT WE'RE DEALING WITH.

THIS BUDGET INCLUDES STUDYING FOR HOUSING INITIATIVES.

IT INCLUDES AND RETAINS THE MEASURE K ALLOCATION.

SO WE'RE STILL IN THE SPACE OF HOW WE CAN PROTECT AND MAINTAIN OUR CORE SERVICES, INCLUDING SUPPORTING OUR UNHOUSED INDIVIDUALS, ESPECIALLY ACROSS OUR CORE ACTIVITIES.

WITHIN ROADS AND PARKS, AGAIN, MEASURE K HAS BEEN A STRONG INVESTMENT IN OUR ROADS AND PARKS.

WE ALSO ADDED ENHANCED INFRASTRUCTURE FINANCING DISTRICTS AS A NEW TOOL.

WE'VE LOOKED AT THAT FOR THE CITY OF SCOTTS VALLEY IN A PARTNERSHIP, AND WE'RE LOOKING AT THAT FOR THE COUNTY PROPERTY.

SO THAT'S A NEW TOOL FOR US THAT WE'RE ABLE TO EXPLORE.

AND THEN OUR PUBLIC SAFETY AND JUSTICE, REALLY THAT'S ABOUT MAINTAINING OUR CURRENT SERVICES, AVOIDING CATASTROPHIC REDUCTIONS, AND THEN BEING SMART FROM, AGAIN, MAYBE FROM AN ORGANIZATIONAL MODERNIZATION, BUT ALSO IMPROVING CHANGE IN SERVICE DELIVERY AND A DIFFERENT WAY OF THINKING ABOUT IT, ESTABLISHING OUR ALTERNATE PUBLIC DEFENSE DEFENDERS OFFICE, BECAUSE OF A REALLY INNOVATIVE APPROACH THAT...

COULD BE A BUDGET BONUS AS WELL AS A SERVICE BONUS.

AND WITH THAT, I'LL GO BACK TO CEO COBURN.

SO I WANT TO TALK ABOUT SOME OF THE RISKS AND UNCERTAINTIES GOING FORWARD.

THANK YOU, MARCUS.

AS WE ALL KNOW, H.R. 1 IS PROBABLY OUR LARGEST AND MOST CERTAIN RISK AT THIS POINT.

WE HAD ANTICIPATED THAT THE IMPACTS OF ABSORBING THE H.R. 1 CHANGES WOULD BE $25 MILLION IN THE NEW FISCAL YEAR OF 2026-27.

OUR HEALTH AND HUMAN SERVICES DEPARTMENTS HAVE TAKEN THAT AND ABSORBED THOSE IMPACTS, BUT THAT'S NOT IDEAL.

WE ARE WORKING HAND IN HAND WITH THE CALIFORNIA STATE ASSOCIATION OF COUNTIES TO TRY TO CONVINCE GOVERNOR NEWSOME AND THE STATE LEGISLATURE THAT THIS IS REALLY SOMETHING THAT THE STATE OF CALIFORNIA NEEDS TO HELP COUNTIES WITH.

I BELIEVE THE STATE OF CALIFORNIA IS ONE OF 10 STATES THAT GIVES ADMINISTRATION OF HEALTH AND SAFETY NET PROGRAMS. TO COUNTIES RATHER THAN THE STATE ADMINISTERING ITSELF.

SO WE REALLY VIEW THIS AS SOMETHING THAT THE STATE NEEDS TO BE HAND IN HAND IN PARTNERING WITH THE SOLUTION.

SO WE ARE WORKING ON TRYING TO GET FUNDING, MULTI-YEAR FUNDING THAT WILL HELP COUNTIES, INCLUDING OURS.

ANOTHER RISK IS FEMA, AS THE BOARD KNOWS, THE COUNTY HAD TO BASICALLY ISSUE BONDS AND DO SOME INTERNAL FINANCING TO THE TUNE OF $80 MILLION TO COVER OUR 2023-24 DISASTER STORM COSTS.

AND SO WE ARE... WHAT THAT MEANS IS WE ARE PAYING DEBT ON THAT AND EVERY SPRING WE HAVE TO PAY OFF SOME OF THAT DEBT.

SO WE ARE RELYING ON FEMA REIMBURSEMENTS TO COME IN, TO PUT THAT INTO AN ACCOUNT SO THAT WE CAN MAKE THOSE SPRING DEBT PAYMENTS.

AS THE BOARD KNOWS, OUR CLIMATE-BASED DISASTER EVENTS HAVE BEEN ESCALATING SINCE 2016, 2017.

[01:30:01]

AND AS A RESULT, WE'VE BEEN HAVING TO USE OUR LIMITED FINANCIAL RESOURCES AND RESERVES AND ISSUE DEBT TO PAY FOR RESPONDING TO THOSE EVENTS.

WE ARE ANTICIPATING AN EL NIÑO YEAR THIS UPCOMING WINTER, WHICH GIVES ME HEART PALPITATIONS BECAUSE I'M ANTICIPATING THAT IT COULD BE VERY WET AND WE COULD SEE MUDSLIDES, SLIP OUTS, FLOODING, ALL THE REST OF IT.

AND SO THAT IS ONE OF THE PRIMARY REASONS WHY IT WAS IMPORTANT FOR US TO PUT THE $2 MILLION BACK INTO THE ROADS FUND SO THAT WE'RE ABLE TO CLEAN OUT CULVERTS AND DO THE WINTER STORM PREP THIS SUMMER AND FALL BEFORE WE GET TO THAT EL NIÑO STORM THAT COULD START AS EARLY AS LATE SUMMER.

SO THAT IS A CONCERN AND A RISK FOR US.

WE HAVE ABOUT $50 MILLION IN OUTSTANDING FEMA REIMBURSEMENTS AND WE CONTINUE TO MONITOR THAT.

WE HAVE A CONSULTANT SIKICH WHO'S BEEN WORKING WITH US ON OUR COST RECOVERY AND WE CONTINUE TO COLLABORATE WITH OUR FEDERAL DELEGATION ON TRYING TO GET REIMBURSEMENTS AND WE WILL CONTINUE TO DO SO.

I ALSO WANT TO NOTE THAT THE BONDS THAT WE ARE EXPECTED TO PAY DOWN, WE ARE ANTICIPATING $43 MILLION IN FEDERAL REIMBURSEMENTS BY JUNE OF 2027.

IF I AM READING MARCUS'S NOTE CORRECTLY, IT LOOKS LIKE WE ARE PAYING DOWN $12 MILLION IN THE CURRENT YEAR AND ABOUT $15 MILLION IN NEXT FISCAL YEAR.

SO WE HOPE TO CONTINUE TO MAKE THOSE PAYMENTS.

IF WE DON'T MAKE THE PAYMENTS, THEN WHAT THAT MEANS IS THE GENERAL FUND AND THE ROAD FUNDS WILL BE ON THE HOOK FOR AN EVEN GREATER SHARE OF THE COST BECAUSE IT WILL BECOME MORE EXPENSIVE ON AN ONGOING BASIS.

SO WITH THAT, I WANT TO GO TO THE NEXT SLIDE AND TALK ABOUT THE SHORT, MEDIUM AND LONG-TERM SOLUTIONS FOR ADDRESSING OUR STRUCTURAL IMBALANCE, WHICH AS YOU KNOW, THE CURRENT FORECASTED GAP REACHES JUST ABOVE 67 MILLION BY 2028-'29.

SO SHORT-TERM, WE'VE ALREADY IMPLEMENTED CERTAIN THINGS, AS YOU KNOW, LIKE THE HIRING AND TRAVEL FREEZES IN THE PROPOSED BUDGET.

WE HAVE VARIOUS SERVICE AND STAFFING REDUCTIONS FOR JUST THOSE VACANT POSITIONS.

WE HAVE SOME DEFERRED CAPITAL THAT WE HAVE PLANNED.

WE ARE ROLLING OVER ALL OF THE CAPITAL FUNDS THAT ARE CURRENTLY IN THE BUDGET FOR THIS YEAR INTO NEXT YEAR'S BUDGET.

ON A MEDIUM TERM BASIS, WE ARE WORKING ON THAT ADVOCACY WITH THE STATE OF CALIFORNIA ON FUNDING FOR OUR H.R. 1 IMPACTS.

WE HAVE PROPOSED VARIOUS ORGANIZATIONAL CHANGES AND RESTRUCTURING, PROBABLY THE MOST PROMINENT OF WHICH IS THE ALTERNATE PUBLIC DEFENDER'S OFFICE.

WE ARE HAVING TO LOOK AT IN THIS PROPOSED BUDGET AND WE WILL DO SO CONTINUING FORWARD WAYS TO ADJUST THE WAY THAT THE COUNTY IS DELIVERING SERVICES.

WE PLAN TO WORK WITH DEPARTMENTS IN THE FALL TO WORK WITH STAFF AT ALL LEVELS TO COME UP WITH IDEAS.

HSA ACTUALLY DID THIS AS PART OF DEVELOPING THEIR BUDGET THIS FISCAL YEAR.

THEY WORKED WITH SEIU AND OTHER STAFF TO GENERATE IDEAS AND THEY HAVE A LIST OF OVER 40 THINGS, SOME OF WHICH ARE IN THIS PROPOSED BUDGET, SOME OF WHICH ARE BEING WORKED ON FOR THE FUTURE.

AND IT'S THAT KIND OF WORK THAT WE WANNA DO ACROSS THE COUNTY TO TRY TO FIGURE OUT WHERE ELSE WE CAN BECOME MORE EFFICIENT, PROVIDE BETTER SERVICES, REDUCE OUR COSTS.

WE ARE ALSO WORKING ON REVENUE ENHANCEMENTS AND WE HAVE SOME IDEAS IN THE PROPOSED BUDGET LIKE THE PILOT PROGRAM FOR PARKING AT DISTINCT REGIONAL COUNTY PARKS.

WE ARE ALSO PURSUING A REIMBURSEMENT RATE INCREASE FOR OUR HEALTH CENTERS, WHICH COULD BRING IN SIGNIFICANT MONEY ON AN ANNUAL BASIS TO THE TUNE OF, I BELIEVE IT'S OVER $3 MILLION ANNUALLY.

AND THEN WE, MARCUS AND I ARE GOING TO BE WORKING WITH SUPERVISOR KOENIG ON SALES TAX AND PROPERTY TAX ALLOCATION REFORM.

SO THOSE ARE JUST SOME OF THE SHORT AND MIDTERM THINGS.

OBVIOUSLY LONG-TERM, WE NEED TO ADDRESS OUR STRUCTURAL IMBALANCE WITH OUR COSTS EXCEEDING OUR REVENUES ON AN ONGOING BASIS.

THERE MIGHT BE PENSION STRATEGIES

[01:35:03]

WE CAN EMPLOY.

WE NEED TO LOOK AT HOW WE MIGHT GET MORE OF THE PROPERTY TAX BASE AND HOW WE'RE GONNA DEAL WITH COVERING DISASTER COSTS IN THE FUTURE, DEPENDING ON WHAT THE FEDERAL GOVERNMENT DOES WITH FEMA REFORMS. AND OBVIOUSLY WE NEED TO REBUILD OUR RESERVES.

AND I WILL NOTE, EVEN THOUGH WE'RE PROPOSING USE OF ONE-TIME RESERVES TO THE TUNE OF $30 MILLION THROUGH OUR CONCLUDING ACTIONS, WHICH YOU WILL CONSIDER ON JUNE 24TH, WE ALWAYS LOOK TOWARDS REBUILDING AND PUTTING MONEY BACK INTO RESERVES AS ONE OF OUR PRIMARY CONCLUDING ACTIONS.

SO AS WE HAVE MORE MONEY, AND IF WE HAVE MORE MONEY IN THIS FISCAL YEAR, WHEN WE CLOSE IT, WE WILL LOOK TO REPLENISH OUR RESERVES.

THAT'S ONE OF THE TOP THINGS THAT WE DO.

SO I JUST WANT TO KNOW THAT, DEPENDING ON WHAT THE STATE OF CALIFORNIA DOES AND THEIR BUDGET, IF THEY GIVE US ANYTHING FOR H.R. 1 OR OTHER AREAS OF THE COUNTY THAT WE COULD THEN USE TO FREE UP AND PUT MONEY BACK INTO RESERVES, WE WOULD LOOK TO DO THAT.

SO GO TO THE NEXT SLIDE WITH THAT.

THIS JUST SUMMARIZES THE ACTIONS TODAY.

YOU ARE JUST ACCEPTING AND FILING THE PROPOSED BUDGET.

YOU ARE NOT APPROVING OR ADOPTING ANYTHING.

WE WILL BE BACK ON JUNE 10TH IN WATSONVILLE TO KICK OFF OUR DEPARTMENTAL BUDGET HEARINGS.

YOU'LL GET A CHANCE TO HEAR ALL THE PROPOSALS AT THAT TIME.

THOSE BUDGET HEARINGS WILL CONTINUE TO THE NEXT DAY, JUNE 11TH HERE IN SANTA CRUZ.

AGAIN, AT THIS POINT, THESE ARE ALL PROPOSALS.

WE WANT TO ANSWER YOUR QUESTIONS AND HEAR THE COMMUNITY'S CONCERNS.

AND WE ARE HAPPY TO HAVE A CONVERSATION WITH YOU GOING FORWARD.

AND I WANT TO THANK YOU, REALLY APPRECIATE THE BOARD'S SUPPORT IN DEVELOPING THIS PROPOSED BUDGET.

I ALSO WANT TO ACKNOWLEDGE MARCUS PIMENTEL, RYAN FRIEDRICH, ELISSA BENSON, AND OUR ENTIRE BUDGET TEAM AND ALL OF THE DEPARTMENTS WHO WORKED ON THIS VERY CHALLENGING BUDGET.

- THANK YOU, CEO COBURN.

I WANT TO THANK YOU AND YOUR TEAM FOR THE VERY COMPREHENSIVE OVERVIEW OF NEXT FISCAL YEAR'S BUDGET.

WITH THAT, I'M GOING TO BE TURNING IT OVER TO THE BOARD FOR QUESTIONS TO THE STAFF.

THEN I'LL BE OPENING IT UP TO PUBLIC COMMENT AND THEN I'LL RETURN IT TO THE BOARD FOR DISCUSSION AND A MOTION.

SO WITH THAT, DO ANY OF MY COLLEAGUES HAVE QUESTIONS FOR STAFF? [PAUSE] SUPERVISOR KOENIG? - THANK YOU, CHAIR.

THANK YOU FOR THE THOROUGH PRESENTATION.

FIRST QUESTION, YOU KNOW, YOU MENTIONED WE HAVE NOT DECLARED A FISCAL EMERGENCY YET, BUT WE MIGHT CONSIDER DOING THAT IN THE FUTURE.

WOULD DOING SO GIVE US ANY PARTICULAR ABILITIES OR POWERS? - IF WE WERE TO DECLARE SOME SORT OF FISCAL EMERGENCY, I THINK THAT WOULD INDICATE TO LABOR THAT WE MIGHT HAVE TO TALK ABOUT CONCESSIONS WITH LABOR AGREEMENTS.

AND SO OBVIOUSLY WE WANT TO PURSUE ALL OPTIONS AVAILABLE TO US BEFORE WE HAVE TO ENTER INTO CONCESSION BARGAINING.

HAVING...

IT TOOK US SOME TIME TO GET BACK WHERE WE'RE PAYING SALARIES AND BENEFITS THAT ARE COMMENSURATE WITH OUR COST OF LIVING HERE IN SANTA CRUZ COUNTY AS THE MOST EXPENSIVE PLACE TO LIVE.

AND SO THAT WOULD BE ONE OF THE LAST PLACES WE WOULD WANT TO GO, BUT THAT WOULD BE ONE OF THE TOOLS THAT, YOU KNOW, WOULD INDICATE.

ALSO, IF WE WERE TO HAVE TO PURSUE SOME SORT OF EMERGENCY TAX OR OTHER REVENUE MEASURE, WE MIGHT LOOK TO DECLARE A FISCAL EMERGENCY TO INDICATE TO THE COMMUNITY THAT THIS IS A VERY SERIOUS SITUATION.

IF WE DON'T SEE HELP FROM THE STATE OF CALIFORNIA, THAT WE MAY BE IN A POSITION AT THAT TIME TO COME TO THE BOARD WITH DECLARING THAT EMERGENCY.

I THINK THE PRESENTATION DID A GOOD JOB OF LAYING OUT KIND OF THE TWO MAJOR THINGS IMPACTING OUR BUDGET TODAY, THE H.R. 1 CUTS ON THE ONE HAND, AND THEN JUST THE RISING COST OF LIVING IN OUR COMMUNITY, LEADING TO THE NEED TO PAY RISING SALARIES ON THE OTHER HAND.

OKAY, THANKS.

AND THE USE OF THE MEDICAL EARMARK RESERVES MAKES SENSE AS A WAY TO ADDRESS THE CUTS FROM H.R. 1, WHICH I THINK WE ALL HOPE WILL BE TEMPORARY AND THAT WE CAN OVERCOME.

AND SO THAT MAKES SENSE TO USE RESERVES FOR THE RAINY DAY OR RAINY FEW YEARS

[01:40:01]

THAT WE'RE EXPERIENCING HERE.

SO MY QUESTION IS ON THE OTHER SIDE.

I MEAN, WHEN WE LOOK AT THE USE OF RESERVES, I MEAN, THE GRAPH, THE YELLOW BARS, THE RED BARS, IT LOOKED LIKE JUST ROUGHLY SPEAKING ABOUT 35, 40% OF THE USE OF RESERVES WAS TO MAINTAIN POSITIONS IN PUBLIC SAFETY AND JUSTICE.

I MEAN, AND WHETHER THOSE ARE IN PUBLIC SAFETY AND JUSTICE OR OTHER NON-HEALTH POSITIONS, I MEAN, I THINK IS, THE POINT IS JUST THAT THEY'RE NON-HEALTH POSITIONS, RIGHT? AND SO THEY CANNOT USE THE EARMARKED MEDICAL RESERVE FUNDS.

SPENDING OUR RESERVES DOWN SO MUCH JUST GIVES ME PAUSE ON THAT FRONT, BECAUSE IT'S NOT A PROBLEM THAT LOOKS LIKE IT'S GOING TO GO AWAY ANYTIME SOON, RIGHT? IF ANYTHING, WE'RE GONNA CONTINUE TO SEE INCREASED COSTS OF LIVING.

MAYBE WE CAN FLATTEN IT OUT, BUT THE CHALLENGE DOESN'T GO AWAY.

SO I GUESS, HOW ARE WE THINKING ABOUT USING RESERVES TO PAY FOR THAT WE DON'T EXPECT TO GO AWAY? I MEAN, WHAT'S THIS LONG-TERM SOLUTION FOR THAT PIECE? - YEAH, I WANT TO...

BEFORE MARCUS MIGHT JUMP IN TOO, BUT ON THE PUBLIC SAFETY AND JUSTICE SIDE, WE ARE EXPERIENCING SOME CHALLENGES WITH STAFFING IN TERMS OF A LARGE NUMBER OF LEAVES.

AND SO THAT TAKES PEOPLE OFF THE FRONT LINES.

AND SO SOME OF THOSE HAVE TO DO WITH LEAVES THAT HAVE BEEN LONG STANDING.

AND SO WE'RE LOOKING AT WHAT TOOLS OR STRATEGIES ARE AVAILABLE TO US AS A COUNTY TO TRY TO ADDRESS SOME OF THOSE LEAVES THAT HAVE MAYBE BEEN ONGOING FOR A VERY LONG TIME THAT WE COULD TRY TO EITHER BRING BACK TO COUNTY EMPLOYMENT SO THAT WE HAVE THOSE POSITIONS AVAILABLE TO US AND, OR, YOU KNOW, FIGURING OUT IF MAYBE SOME OF THOSE PEOPLE, IT'S READY TO... THEY'RE, YOU KNOW, IT'S... THEY'RE READY TO SEPARATE OR WHATEVER SITUATION THEY HAVE GOING ON, WE CAN ADDRESS THAT.

SO THAT IS SOME OF THE CHALLENGE THERE.

WE WANTED TO BE ABLE TO PROVIDE THE STAFF TO OUR PUBLIC SAFETY AND JUSTICE DEPARTMENTS THAT THEY NEED TO CONTINUE TO SERVE THE PUBLIC AND MEET THE BOARD'S PRIORITIES.

AND SO LONG-TERM, WE AGREE, WE NEED TO TRY TO ADDRESS SOME OF THOSE COSTS.

AND I WOULDN'T WANT TO BE USING RESERVES FOR PUBLIC SAFETY AND JUSTICE ON AN ONGOING BASIS.

I VIEW THIS AS A ONE-TIME THING, AS WE'RE TRYING TO FIGURE OUT WHAT'S GOING ON WITH SOME OF THE LEAVES AND STAFFING SITUATIONS THAT WE COULD BRING AND HELP STABILIZE THOSE DEPARTMENTS.

OKAY, SO YOU'RE VIEWING IT AS A ABNORMAL SITUATION WITH THE ABOVE NORMAL NUMBER OF LEAVES.

ALL RIGHT.

IT WAS HIGHLIGHTED A COUPLE OF TIMES, JUST THE RISKS OF OUR AGING INFRASTRUCTURE, THE FACT THAT WE'RE GOING INTO A SUPER EL NIÑO YEAR THAT'S BEEN PREDICTED, WHICH OF COURSE CORRELATE, EL NIÑO IS TYPICALLY CORRELATED AS SOME OF THE BIGGEST IMPACT ON OUR ROAD SYSTEM, AND OTHER INFRASTRUCTURE.

I SEE THAT THERE'S $2 MILLION ALLOCATED FOR ROADS FROM OUR MEASURE K BUDGET.

IS THAT THE EXTENT OF GENERAL FUND BUDGET ALLOCATED FOR ROADS? - YES.

I MEAN, I THINK IN THE LAST YEAR'S BUDGET, WE HAD $3.5 MILLION.

SO, I MEAN, THAT REPRESENTS A 43% CUT TO WHAT WE'RE INVESTING IN OUR ROAD INFRASTRUCTURE.

THE TIME WHEN WE ALL SEEMS LIKE THERE'S GENERAL CONSENSUS, WE SHOULD PROBABLY BE GOING ABOVE AND BEYOND.

SO THAT GIVES ME PAUSE.

I THINK THAT WE'RE, YOU KNOW, EVEN AS THE REPORT ON STORM DAMAGE THAT WE HAD AT OUR LAST MEETING DEMONSTRATES, WE'RE SEEING LESS REIMBURSEMENTS FROM THE FEDERAL GOVERNMENT.

I MEAN, WE COULD EVEN SEE DRAMATICALLY LESS.

MAYBE THEY MIGHT EVEN DECLARE A DISASTER FOR SOME OF THESE MAJOR RAIN EVENTS THAT WE EXPERIENCED.

AND THAT COULD BE EXTREMELY PROBLEMATIC FOR US.

AND SO ANYTHING THAT WE CAN DO FOR PREVENTATIVE MAINTENANCE NOW, WHILE IT'S DRY, ARE ULTIMATELY GOING TO SAVE US A LOT OF MONEY IN THE LONG TERM.

SO I KNOW THAT, YOU KNOW, WE...

I MEAN, I WOULD PERFECTLY FRANK RATHER SPEND MONEY ON FIXING THE 500 FAILED CULVERTS IN OUR NETWORK THAN PAYING FOR ADDITIONAL ANALYSTS.

I MEAN, MY UNDERSTANDING

[01:45:02]

IS THAT THE OFFICE OF RESPONSE RECOVERY AND RESILIENCE IS UP TO SIX ANALYSTS AT HIGH HUNDREDS, 200,000 TOTAL COMPENSATION.

I MEAN, IF WE ARE GOING TO INVEST IN OUR ROADS, MAYBE WE SHOULD LOOK AT REALLY WHICH IS GOING TO BE BETTER DISASTER PREPAREDNESS, MAKING SOME OF THESE INFRASTRUCTURE REPAIRS OR FUNDING THE STAFF TO KNOCK LOUDLY ON THE FEDERAL GOVERNMENT'S DOOR AND ASK FOR MORE MONEY AFTER THAT DAMAGE HAS HAPPENED.

THOSE ARE MY ONLY QUESTIONS.

- SUPERVISOR DE SERPA? - THANK YOU.

SO I COME FROM A SYSTEM OF GOVERNING WHERE WE HAD TO PREPARE A BUDGET THREE YEARS OUT.

SO NOT JUST FOR TODAY, BUT THEN AN ADDITIONAL THREE YEARS, WE HAD TO BALANCE EACH YEAR'S BUDGET FOR THREE YEARS EVERY YEAR.

SO THIS IS A LITTLE BIT DIFFERENT.

SO IT LOOKS TO ME LIKE FROM WHAT YOU'VE REPORTED THAT IN '28, '29, OUR DEFICIT MAY BE UPWARDS OF $67.5 MILLION.

IS THAT RIGHT? - YEAH, THAT'S BASED ON TODAY AND I'LL HAVE MARCUS ADDRESS THAT.

- YEAH, WE'LL ALSO BE IN THE NEXT MONTH UPDATING OUR FORECAST AND THAT IT ALSO INCLUDES INFORMATION RELEASED BY THE STATE AND THAT MAY REVISE.

SO OUR JUNE 10TH BOARD MEETINGS BY THEN WE'LL HAVE A NEW FORECAST, BUT THAT IS OUR CURRENT MODEL AS OF FEBRUARY.

- AND I DO REALIZE THAT THE MAY REVISE IS COMING AND WE ALL HOPE FOR GOOD NEWS WITH THE MAY REVISE, BUT ALSO WE ARE GUARDED BECAUSE WE MIGHT NOT GET ANY GOOD NEWS.

YOU KNOW, I WILL SAY THAT THIS IS NOT A SANTA CRUZ COUNTY ISSUE.

WE'VE GOT SANTA CLARA COUNTY WITH A DEFICIT OF $787 MILLION AND THEY'RE LOOKING AT LAYING OFF 464 POSITIONS.

SAN FRANCISCO COUNTY HAS $642.8 MILLION DEFICIT LAYING OFF 500 POSITIONS.

MONTEREY COUNTY NEXT DOOR TO US HAS A $40.6 MILLION DEFICIT.

SAN MATEO COUNTY LOOKS TO ME LIKE IT HAS $119 MILLION, BUT THEY MIGHT BE AN OUTLIER BECAUSE THEY'RE I THINK IN SOME TYPE OF A LAWSUIT REGARDING SOME REIMBURSEMENT FROM THE VEHICLE LICENSING FEE THAT THEY DIDN'T GET THIS YEAR.

YOLO COUNTY, WHICH IS A SIMILAR COUNTY TO OURS HAS A $35 MILLION DEFICIT.

THEY'RE LAYING OFF 118.

AND I WAS SO PLEASED TO SEE THAT WE WERE CREATIVE IN ATTEMPTING TO BALANCE OUR BUDGET THIS YEAR, BUT I DO, I HAVE SIMILAR CONCERNS TO SUPERVISOR KOENIG IN TERMS OF DIPPING SO FAR INTO OUR RESERVES.

I MEAN, A 10.4% RESERVE IS, IT'S A FAR CRY FROM 15%.

AND GIVEN WHAT WE KNOW ABOUT UPCOMING EL NIÑO YEAR, I AM WORRIED ABOUT NOT HAVING THOSE.

I'M SURE YOU ARE TOO, I'M SURE IT'S WEIGHING ON YOU.

SO A QUESTION ABOUT THE FEMA REIMBURSEMENTS USED TO PAY.

I HEARD YOU S- I HEARD YOU SAY, I THINK, NICOLE, THAT THE MONEY COMING IN TRICKLING IN FROM FEMA IS GOING INTO AN ACCOUNT TO MAKE THE PAYMENT.

ON WHAT WE OWE EVERY SPRING, BECAUSE WHAT IS THE ACTUAL PAYMENT THAT WE OWE? IT'S...

AND I KNOW THAT COMES RIGHT OUT... - ALL THE PARKWAYS.

- ...OF THE GENERAL FUND CURRENTLY, BUT.

- YEAH, [STUTTERING] OUR DEBT SERVICE IS ABOUT $3 MILLION A YEAR.

- $3 MILLION A YEAR.

AND THAT STARTED JUST THIS YEAR IN '26? - YEAH, AND WE...

WHAT THAT CURRENT CONVERSATION WAS, WE WERE JUST TALKING ABOUT, WE... THINKING GOING BACK TO WHY DID WE ISSUE WHAT WAS INITIALLY $90 MILLION OF DEBT, SOME OF IT INTERNAL? - OH, I KNOW WHY.

YEAH, WE HAD TO...

[INAUDIBLE] ...TO MAKE THOSE REPAIRS, YEAH. - FEDERAL GOVERNMENT WASN'T THERE AND WASN'T RESPONSIVE.

- YEAH. - SO NOW WE'RE STARTING TO SEE THE TRICKLE IN OF SOME OF THEIR REIMBURSEMENTS FROM 2023... - RIGHT.

AND LATE, YOU KNOW, THE WINTER OF 2022.

- RIGHT. - SO THAT'S THE TIMING DELAY.

IF WE WOULD HAVE WAITED, THOSE ROADS WOULD HAVE BEEN...

- OH YEAH, THERE'S NO QUESTION WE HAD TO DO IT. - WITHOUT, YEAH.

BUT WE'RE GETTING...

WHAT WE WOULD LIKE TO SEE $50 MILLION ALL AT ONCE THREE YEARS AGO, IT COMES IN AND TRICKLES.

- SO THAT'S MY NEXT QUESTION.

WE'RE [STUTTERING] GETTING ABOUT 10 TO $12 MILLION A YEAR AND WE'RE USING THAT TO PAY DOWN DEBT.

- OH, WE ARE. - WE ARE ACTUALLY LOWERING OUR TOTAL DEBT. - SO WE'RE NOT MAKING THE PAYMENT.

- WE'RE ACTUALLY PAYING DOWN THE PRINCIPAL WITH THAT MONEY. - RIGHT.

- OKAY, GOOD.

THAT'S WHAT I HAD THOUGHT I KNEW, BUT I JUST WANTED TO DOUBLE CHECK.

OKAY.

AND, YOU KNOW, I LIKE SUPERVISOR KOENIG THE... YOU KNOW, I HAVE THE MOST, I THINK, ROAD MILES IN MY AREA.

AND, YOU KNOW, THAT'S THE BIGGEST COMPLAINT FROM OUR CONSTITUENTS IS THAT ARE FAILING ROADS AND CULVERTS, ET CETERA, ET CETERA.

[01:50:02]

SO I DO THINK THERE NEEDS TO BE A BETTER INVESTMENT IN OUR ROADWAYS.

YOU KNOW, SOME OF THE THINGS THAT I'VE LOOKED AT BEFORE IN THE SCHOOL DISTRICT, AND YOU WERE TALKING ABOUT LONG-TERM LEAVES, LIKE WE MADE A CONCERTED EFFORT TO GET ALL OUR WORKMAN'S COMP CASES SETTLED QUICKLY AND, YOU KNOW, ET CETERA.

SO THEY'RE NOT HANGING AROUND ON THE BOOKS FOR 10 YEARS.

SO THAT IS AN AREA.

- THAT, YEAH.

- AND THE OTHER THING IS, YOU KNOW, WE HAD VERY ROBUST RISK MANAGERS SO THAT WE COULD REDUCE THE WORKMAN'S COMP CASES THAT CAME IN.

AND SO I DON'T KNOW IF WE'RE LOOKING AT THAT FOR THE FUTURE.

I'M JUST GIVING SOME IDEAS.

THAT I'VE SEEN... - YEAH, WE ARE...

- ...IN OTHER PLACE. - ...LOOKING AT THAT.

SO WE'RE TRYING TO BEEF THAT UP AND WE'RE, I'M CLOSELY COORDINATING WITH OUR HUMAN RESOURCES DEPARTMENT TO SEE IF WE NEED TO...

WHAT RESOURCES OR WHO WE NEED TO WORK WITH TO MORE ACTIVELY ADDRESS THAT SITUATION.

- THAT'S GREAT.

AND THEN THE OTHER AREA, I THINK, THAT COULD REDUCE SOME OF OUR DEBT IS, YOU KNOW, LAWSUITS.

IN THE SCHOOL DISTRICT, WHAT WE STARTED DOING WAS...

BECAUSE WE HAD A LOT OF LAWSUITS COMING FROM SPECIAL ED, ET CETERA, WE STARTED SERVING KIDS DIFFERENTLY AND BETTER AND FAMILIES.

SO I REALLY, IF THERE WAS ANY WAY WE COULD REDUCE THE NUMBER, THE AMOUNT, THE YEARS LONG FIGHTS ABOUT ISSUES THAT COULD BE SETTLED QUICKLY OR MORE QUICKLY, I REALLY WOULD APPRECIATE THAT.

SO I THINK THAT WOULD SAVE OUR COUNTY A LOT OF MONEY.

AND THEN IN TERMS OF...

LIKE, I JUST DON'T WANT TO KICK THE CAN DOWN THE ROAD.

LIKE, OKAY, THIS YEAR WE'RE GOOD, BUT LIKE NEXT YEAR WE'RE GONNA HAVE TO MAKE GIANT CUTS.

I JUST, I'M WORRIED ABOUT THAT.

I LIKE, IF WE HAVE A STRUCTURAL DEFICIT, I LIKE DEALING WITH IT EARLY SO THAT IT'S NOT SO, SUCH A BIG DEAL SECOND AND THIRD YEAR OUT. - YEAH.

- ANYWAY. - AND I HONESTLY THINK BUDGETING IS GONNA BE...

IT'S ALREADY YEAR ROUND, BUT THERE'S GONNA BE A CONCERTED EFFORT IN THE FALL TO FIGURE OUT HOW TO CONTINUE TO MANAGE AND CONSTRAIN OUR COSTS TO TRY TO BRING THEM DOWN TO DEAL WITH THAT STRUCTURAL BUDGET.

I ALSO WANTED TO NOTE REGARDING ROADS, ELISSA REMINDED ME, WE HAVE CDBG DISASTER FUNDING NEARING $10 MILLION TO... FOR THE CULVERTS.

SO THAT IS SOMETHING THAT WILL HELP US IN TERMS OF ADDRESSING POTENTIAL PROBLEMS. [PAUSE] - SUPERVISOR HERNANDEZ? [PAUSE] - YOU KNOW, WITH OUR RESERVES AT A 10.5, YOU KNOW, I DO THINK THAT RESERVES ARE RESERVES, RIGHT? THEY'RE RAINY DAY FUNDS.

AND THAT'S...

MR...

WE JUST HEARD EARLIER THAT THIS IS ONE OF THE WORST BUDGETS THAT WE'VE HAD.

AND I THINK IT'S ABSOLUTELY, YOU KNOW, IT'LL BE CRITICAL TO USE THESE RAINY DAY FUNDS DURING THIS TIME.

AND I THINK THAT SOME OF THE POSITIONS THAT WE'RE LOOKING AT, ANALYST POSITIONS, WILL EVENTUALLY HELP US IN, AS WE MOVE INTO MORE OF THE REVENUE GENERATING OR ECONOMIC DEVELOPMENT ITEMS THAT WE'VE BEEN DISCUSSING OR THAT WE'VE SEEN HERE THAT WE...

HOW WE WANT TO INCREASE THAT.

YOU KNOW, WHETHER IT'S LEGISLATIVE POSITIONS, ECONOMIC DEVELOPMENT, PLANNING, HOUSING, I THINK THOSE WILL ALL HELP US MOVE IN THAT DIRECTION TO BEING A COUNTY THAT'S MORE REVENUE GENERATING AND HELP US IN THE LONG RUN WITH OUR BUDGET.

I WANTED TO ASK, YOU KNOW, WE HAVE PRIORITIZED SAFETY NET ITEMS AND OF COURSE OUR WORKFORCE TOO.

ARE WE LOOKING AT ANY UNMANDATED ITEMS THAT ACTUALLY PRODUCE OR...

THAT ARE UNDER THE BANNER OF SAFETY NET ITEMS FOR CUTS? - CAN YOU JUST REPEAT THAT LAST PART REALLY QUICK? - SO WE HAVE PRIORITIZED SAFETY NET ITEMS AND IN OUR WORKFORCE, ARE WE LOOKING AT ANY UNMANDATED ITEMS THAT ARE UNDER THE BANNER OF SAFETY NET ITEMS TO LOOK FOR CUTS? - YEAH, SO WE DID AN EXERCISE, YOU KNOW, WITH HEALTH AND HUMAN ALSO HAS THIS INFORMATION WHERE THEY LOOK AT WHAT'S MANDATED AND NOT IN DISCRETIONARY FOR INSTANCE, UNDER THINGS THAT MIGHT BE DISCRETIONARY, BUT ARE STILL SAFETY NET ITEMS. THERE ARE A NUMBER OF THINGS, BUT OFTENTIMES THEY'RE THINGS THAT WE ACTUALLY NEED.

FOR INSTANCE, OUR HEALTH CENTERS, OUR CLINICS,

[01:55:02]

THOSE ARE SOMETHING, THERE ARE ELEMENTS OF THAT THAT WE HAVE TO PROVIDE, BUT A LOT OF COUNTIES DON'T OPERATE THEIR OWN CLINICS.

SO THAT'S JUST ONE EXAMPLE OF WHERE WE'RE PROVIDING A SAFETY NET SERVICE THAT WE HAVE CHOSEN AS A COUNTY THAT'S IMPORTANT, THAT IS MEETING SOME MANDATES, BUT ALSO PROVIDING SERVICE THAT ARE VALUE-BASED.

AND THERE'S OTHER EXAMPLES ACROSS THE COUNTY OF THINGS THAT, YOU KNOW, WE HAVE CHOSEN TO FUND BECAUSE THEY'RE IMPORTANT TO US, BUT THEY ARE ALSO DISCRETIONARY.

- YOU KNOW, I THINK EVEN IF SOME OF THESE THINGS ARE UNMANDATED, I STILL THINK WE SHOULD STILL PRIORITIZE THINGS LIKE FOOD INSECURITY, HOUSING, BECAUSE I THINK THAT WHEN, ANYTIME WE HAVE THIS KIND OF A BUDGET OR DEFICIT, NOT JUST AT THE COUNTY, BUT JUST SORT OF WHAT'S GOING ON WITH H.R. 1 AND AT THE NATIONAL LEVEL, FOOD INSECURITY BECOMES A SERIOUS ISSUE IN OUR COMMUNITIES AND SO DOES HOUSING.

SO I JUST WANT TO MAKE SURE THAT WE DO CONTINUE TO FUND THAT DESPITE OUR BUDGET CONSTRAINTS.

- SUPERVISOR CUMMINGS? - THANK YOU, CHAIR.

I HAVE A COUPLE OF QUESTIONS.

I'M GONNA SAVE MOST OF MY COMMENTS FOR AFTER WE HEAR FROM THE PUBLIC, BUT I'M JUST CURIOUS BECAUSE WE KEEP TALKING ABOUT, YOU KNOW, WHETHER THE STATE, YOU KNOW, THE MAY REVISE, WHETHER IT'S GOOD OR BAD FOR COUNTIES, BUT WHAT DOES THAT ACTUALLY MEAN? IF THE STATE REVISE IS GOOD FOR COUNTIES, WHAT ARE WE TALKING ABOUT VERSUS IF IT'S BAD? - WELL, IF THE MAY REVISE AND WHAT THE LEGISLATURE IS INTRODUCING FOR BUDGET PROPOSALS ARE GOOD FOR COUNTIES, WHAT THAT MEANS IS THAT THEY MAY RATHER THAN...

SO IN JANUARY OF 2027, SOME OF THE MEDI-CAL REQUIREMENTS REALLY START TO HIT COUNTIES.

THAT WAS CONVENIENTLY TIMED THEN BECAUSE IT'S AFTER THE MID-YEAR ELECTIONS.

BUT WHAT THAT MEANS IS FEWER PEOPLE WILL BE ELIGIBLE FOR HEALTHCARE AND COUNTIES WILL PICK UP A GREATER SHARE OF THE COST FOR CALFRESH.

AND SO BETWEEN THE TWO OF THOSE, WE ARE LOSING A LOT OF FEDERAL FUNDS STARTING IN 2027 AND IT'S ONLY GONNA GET WORSE THROUGH 2028.

SO IF THE MAY REVISE IN THE STATE BUDGET IS GOOD FOR COUNTIES, IT WILL PROVIDE STATE FUNDING TO EITHER DELAY IMPLEMENTATION OF SOME OF THOSE MEDI-CAL REQUIREMENTS.

LIKE ESSENTIALLY THE STATE WILL PICK UP SOME OF THOSE COSTS FOR COUNTIES AND OR THEY'LL ALSO PICK UP AND PROVIDE COUNTIES FUNDING FOR PART OF THE COST SHARE FOR THE ADDITIONAL REDETERMINATIONS AND THE OTHER THINGS THAT COUNTIES ARE GOING TO HAVE TO DO TO FIGURE OUT IF SOMEONE CAN STAY ON MEDI-CAL AND CALFRESH.

SO THEY ARE HELPING TO PROVIDE THE FUNDS TO OFFSET THE INCREASED COST SHARE OR THE REDUCED FUNDING.

[COUGHS] - OKAY, THAT'S HELPFUL.

AND SO, I GUESS ONE OF THE QUESTIONS I HAVE IS THAT, YOU KNOW, IF THAT WERE TO OCCUR, I MEAN, THAT'S LIKE A ONE-TIME SOLUTION BECAUSE WE WOULDN'T KNOW, YOU KNOW, WHAT'S GONNA HAPPEN IN THE FUTURE BUDGET.

SO HOW WOULD WE BE PREPARING FOR THE SUBSEQUENT YEAR BUDGET IF THAT WAS JUST KIND OF LIKE A ONE-TIME THING FOR THIS YEAR? - SO OUR ASK OF THE STATE IS FOR A MULTI-YEAR SOLUTION.

AND IF THEY'RE ONLY WILLING TO FUND IT YEAR BY YEAR, AND THEY ONLY INDICATE TO COUNTIES THAT THEY'RE GONNA PUT MONEY IN NEXT YEAR'S BUDGET AND NOT HAVE A MULTI-YEAR SOLUTION, THEN WE WILL HAVE TO COME BACK AND FIGURE OUT WHAT THAT MEANS FOR US.

AS THE BOARD KNOWS, WE'RE WORKING WITH SENATOR LAIRD TO...

WHO HAS INTRODUCED A BILL, SB 1078, THAT WOULD ALLOW THE COUNTY TO LEVY A COUNTYWIDE SALES TAX ABOVE THE CURRENT CAP.

AND IF THAT BILL WERE TO BE PASSED FULLY BY THE LEGISLATURE, IT'S ALREADY BEEN PASSED BY THE SENATE AND SIGNED BY THE GOVERNOR.

WE MAY BE COMING TO THE BOARD BY THE DEADLINE IN THE FIRST WEEK OF AUGUST TO PUT THAT MEASURE ON THE BALLOT BECAUSE ABSENT ANY STATE HELP, WE WILL BECOME A SELF-HELP COUNTY

[02:00:01]

AND NEED TO RAISE FUNDS FOR THE H.R. 1 IMPACTS AND THE IMPACTS IN THE COMMUNITY.

I'M GONNA SAVE THE REST OF MY COMMENTS TILL AFTER WE HEAR FROM THE PUBLIC.

SO THANK YOU.

I WANT TO BEGIN MY QUESTIONS JUST SORT OF TALKING ABOUT THE SEQUENCING OF THESE UPDATES THAT YOU'RE TALKING ABOUT CEO COBURN.

WE KNOW THAT THE MAY REVISE IS EXPECTED IN THE NEXT 10 DAYS, THEN IN...

BY JUNE 15TH, THE LEGISLATURE IS SUPPOSED TO REACH A DEAL, YOU KNOW, BETWEEN THAT EARLIER AND THEN ALSO LATER ARE OUR BUDGET HEARINGS.

SO HOW MIGHT THESE DECISIONS IMPACT OUR ACTIONS IN THE NEXT FISCAL YEAR? I THINK WHEN WE PASS A BUDGET, IF THERE'S A SIGNIFICANT CHANGE, HOW WILL YOU COME BACK TO US OR WHAT CAN WE EXPECT? - YEAH, IF THERE'S A SIGNIFICANT CHANGE, WE WILL INCORPORATE THAT AS PART OF THE FINAL BUDGET THAT WE BRING TO THE BOARD IN SEPTEMBER.

AND SO WE WOULD LIKELY EVEN AHEAD OF THAT, POTENTIALLY IN AUGUST, HAVE A REPORT TO YOU TO INDICATE WHAT THAT MAJOR SHIFT WAS AND HOW WE ARE GOING TO PROPOSE ADJUSTING THE FINAL ADOPTED BUDGET FOR THE COUNTY SO THAT THERE ARE NO SURPRISES.

I THINK REPORTING TO YOU EARLY ON, AS SOON AS WE KNOW WHAT THOSE SHIFTS ARE...

IS PROBABLY, I THINK WOULD BE MOST HELPFUL TO YOU AND US.

- GREAT, THANK YOU.

AND REGARDING THE USE OF THE GENERAL FUND RESERVES, YOU'RE HEARING A LOT FROM US UP HERE ABOUT THAT.

I DO SORT OF SHARE THE SENTIMENT THAT...

WE ARE IN A RAINY DAY.

[CHUCKLES] SO THIS IS, WOULD BE AN APPROPRIATE TIME TO USE SOME OF OUR RESERVES.

BUT BEFORE WE MAKE THAT DECISION, IT WOULD BE HELPFUL TO UNDERSTAND HOW THAT MIGHT IMPACT OUR BOND RATING.

DO YOU HAVE ANY SENSE OF WHAT GOING DOWN TO 2.5% MIGHT DO TO OUR RATING? - IT'S MULTIFACETED.

THE PLANNED USE OF RESERVES ITSELF MAY NOT TRIGGER A RATING REDUCTION.

IT'LL LARGELY DEPEND ON...

[PAUSE] WHAT OUR LONG-TERM PERSPECTIVE IS.

I MEAN, SPEAKING TO THE COMMENTS THAT I THINK WE'VE HEARD FROM THE BOARD, WE'RE RESPONDING IN THE MOMENT.

THIS ISN'T A FIVE-YEAR PLAN.

THIS IS A MOMENTARY PLAN WHERE WE EFFECTIVELY, ALMOST WEEKLY, EVALUATE OPTIONS WITHIN THE COUNTY.

SO BUILDING THAT LONGER TERM SOLUTION, WHAT WILL WE DO OVER THE NEXT TWO TO THREE TO FIVE YEARS WILL BRING MORE CONFIDENCE TO RATING AGENCIES.

IF DONE ISOLATED AND WE JUST PUT UP OUR HANDS, AND SAY "WE'RE DONE," I THINK WE WOULD EXPECT A RATING REDUCTION.

IT DEPENDS ON HOW WE DELIVER THAT.

AGAIN, THE PLANNED USE OF RESERVES IS DIFFERENT FROM ACTUALLY USING RESERVES.

AND THIS BOARD HAS DEMONSTRATED A HISTORY OF VERY STRONG FISCAL PRUDENCE AND MAKING DECISIONS IN THE MOMENT THAT ARE HARD, BUT THAT BALANCE AND SUSTAIN OPERATIONS.

IT'S JUST, THAT'S GONNA BE A BIGGER LIFT OF ALL OF US OVER THESE NEXT 18 MONTHS.

- THANK YOU, I APPRECIATE THAT.

AND I DO APPRECIATE YOU FOR BEGINNING THE PRESENTATION, TALKING ABOUT HOW THIS TYPE OF INVESTMENT COULDN'T HAPPEN AGAIN.

YOU KNOW, IT'S A ONE-TIME USE BECAUSE OF THE TIME PERIOD THAT WE'RE IN.

I REALLY AM APPRECIATIVE OF...

YOUR STAFF'S ABILITY TO PUT TOGETHER A BALANCED BUDGET THAT PRESERVES OUR WORKFORCE.

I KNOW THAT THAT WAS VERY DIFFICULT TO DO AND...

AND WE'LL TAKE A TREMENDOUS AMOUNT OF RIGOR FROM THE DEPARTMENTS AND FROM THE BOARD AS WE SORT OF NAV- NAVIGATE THE BUDGET HEARING PROCESS.

BUT I'D LIKE TO HEAR A LITTLE BIT ABOUT OUR COMMUNITY PARTNERS.

HOW HAVE WE BEEN AND WILL WE ENGAGE OUR CBO PARTNERS AND...

CONTRACTORS THROUGH OUR BUDGET PROCESS? - YEAH, SO WE'VE HELD A NUMBER OF CONVENINGS WITH OUR COMMUNITY PARTNERS SO FAR.

WE... I THINK WE'VE HELD A COUPLE

[02:05:02]

SPECIFICALLY FOCUSED ON H.R. 1 IMPACTS AND THEN ANOTHER ONE JUST RECENTLY AS LAST FRIDAY ON SOME OF THE IMMIGRATION RELATED IMPACTS.

BUT WE'VE BEEN LISTENING TO THEM AND CONSIDERING WHAT THEY'VE BEEN TELLING US.

AND I THINK IT'S REFLECTED IN THIS PROPOSED BUDGET.

WE HAD CHOICES TO MAKE.

WE COULD HAVE RECOMMENDED TO THE BOARD THAT WE CUT CORE, THAT WE FULLY ELIMINATE VERSUS REDUCE CERTAIN CONTRACTS.

AND SO I THINK OUR VALUES IN TERMS OF SUPPORTING OUR COMMUNITY PARTNERS AND CBOS ARE REFLECTED IN THE BUDGET IN TERMS OF WANTING TO TRY TO CONTINUE THIS NEXT YEAR OF CORE AND CONTINUE CERTAIN THINGS THAT AREN'T MANDATED BUT ARE REALLY IMPORTANT TO US LIKE CALFRESH OUTREACH, BY SECOND HARVEST FOOD BANK AND COMMUNITY ACTION BOARD AND OTHERS.

WE CHOSE TO KEEP THESE THINGS IN THE BUDGET AND WE WILL LOOK TO RESTORE THEM IF RESOURCES BECOME AVAILABLE TO US.

BUT WE REALLY NEED TO SEE WHAT IS IN THE STATE BUDGET AND THEN WHAT WE END UP HAVING TO DO AS A COUNTY.

AND I KNOW OUR COMMUNITY PARTNERS ARE ENCOURAGED TO PARTICIPATE IN THE UPCOMING BUDGET HEARINGS.

CAN YOU TALK ABOUT OUR EFFORTS TO HOLD THOSE IN DIFFERENT LOCATIONS? - YEAH, SO WE, FOR THE FIRST TIME, OTHER THAN WHEN WE USED TO DO NIGHT MEETINGS ON OUR COMMUNITY GRANTS, WE ARE GONNA BE HOLDING BUDGET HEARINGS BOTH IN SOUTH AND NORTH COUNTY.

SO OUR BUDGET HEARING ON JUNE 10TH, WE'LL KICK OFF IN WATSONVILLE AT OUR 500 WESTRIDGE, OUR SOUTH COUNTY GOVERNMENT CENTER COMMUNITY ROOM.

THE NEXT DAY ON JUNE 11TH, WE'LL COME BACK TO SANTA CRUZ.

AND THEN WHERE...

WE JUST FOUND OUT THERE MIGHT BE...

WE WERE HOPING TO HAVE JUNE 24TH ALSO IN WATSONVILLE AT THE COMMUNITY ROOM.

THERE MAY BE A CONFLICT WE'RE RUNNING INTO.

SO WE'RE SORTING THROUGH THAT, BUT WE WILL MESSAGE TO THE BOARD IF AND WHERE WE'RE ABLE TO HAVE THAT SECOND SOUTH COUNTY BUDGET HEARING.

- FANTASTIC, THANK YOU.

SO NOW I WILL TURN IT OUT TO THE PUBLIC TO HEAR PUBLIC COMMENT ON THIS ITEM.

IF YOU'D LIKE TO SPEAK TO US ON THE ITEM, PLEASE FORM A LINE IN FRONT OF US AND WE'LL GET A SENSE OF HOW MANY PEOPLE ARE IN THE ROOM.

[RUSTLES] SO FAR, I'M SEEING ABOUT A HANDFUL.

HOW MANY PEOPLE ARE ON THE CALL? - CURRENTLY, THERE ARE THREE SPEAKERS WITH THEIR HANDS RAISED.

- THANK YOU, WITH THAT, I'LL SET THE PUBLIC COMMENT PERIOD FOR TWO MINUTES EACH.

- GOOD MORNING, MY NAME IS MOISHA.

I'LL TRY AND ARTICULATE THIS AS BEST AS POSSIBLE.

I'M ACTUALLY HERE FOR THE VETERANS.

YOU GUYS GOT A BIG PROBLEM BECAUSE THIS PROBLEM IS GONNA MAGNIFY TENFOLD.

TAX REVENUES, EVENTUALLY IN THIS COUNTY, THEY'RE GONNA GO DOWN BECAUSE PEOPLE CAN'T LIVE HERE.

THE PLANNING DEPARTMENT, THEY'RE INEFFECTUAL.

YOU GUYS PUT UPRIGHTS IN THE BIKE LANES, THE STREET SWEEPERS ROLL OVER THEM, KNOCK THEM OFF, DAMAGES THE MACHINE, SO YOU GOT THAT COST.

YOU GUYS CAN'T MAINTAIN THE ISLANDS.

WE LOOK LIKE WE'RE GETTING TO A SECOND WORLD POINT.

THE STREET SWEEPING IN MY NEIGHBORHOOD IS INEFFECTUAL, SO THERE'S BUILDUP OF WEEDS AND DIRT AND EVERYTHING ELSE.

THAT GOES INTO THE DRAINAGE, PUTS BURDEN ON OUR SEWER SYSTEM.

RUNOFF WITH NEW BUILDINGS IS AN ISSUE.

WE CAN'T MAINTAIN OUR INFRASTRUCTURE.

PLANNING DEPARTMENT, MURRAY STREET BRIDGE, YOU KNOW, THREE-YEAR PROJECT SHOULD HAVE BEEN BUILT OFFSITE AND PUT IN.

NOW WE'RE GONNA HAVE AN OLD BRIDGE WITH NEW UPDATES, SO YOU'RE STILL GONNA HAVE A STRUCTURAL INEFFICIENCY ISSUE.

SEAGULLS, MIGRATORY BIRDS.

YAY, THE WHARF'S, YOU KNOW, REBUILT, SHOULDN'T NEVER HAPPEN.

THE SEAGULLS ARE MIGRATORY.

THEY'RE GONNA COME BACK AGAIN AND AGAIN, AND THE PROBLEM'S NEVER GONNA GO AWAY.

SO YOU GOT TO TAKE CARE OF YOUR MAINTENANCE.

AND THE ONLY OTHER COMMENT, PLANNING PREVENTS PISS POOR PERFORMANCE AND WE'RE PERFORMING PISS POORLY.

[PAUSE] - HELLO, MY NAME IS MITCHELL PAGE.

I HAVE A PRIVATE LAW FIRM THAT CONTRACTS WITH THE COUNTY.

SORRY, BEND OVER.

[02:10:01]

- WE'VE BEEN CONTRACTING THE COUNTY FOR A LONG, LONG TIME.

I'M PROVIDING EXCELLENT WORK.

AS IT HAPPENS, MY OFFICE HAS NEVER BEEN BETTER IN TERMS OF QUALITY.

THE SERVICE WE PROVIDE IS A MANDATED SERVICE.

IT MAY BE THE ONLY CONSTITUTIONALLY MANDATED SERVICE YOU'RE DEALING WITH.

I'M NOT ASKING YOU TO SPEND MORE DURING A CRISIS.

I'M SUGGESTING THAT YOU LOOK AT THE BUDGET PROJECTIONS AND WE WILL BE ABLE TO...

I DON'T THINK IT'S THE TIME NOW, BUT WE CAN SIT DOWN WITH APPROPRIATE PARTIES AND DISCUSS HOW THE PROJECTIONS FOR THE TAKING OF THIS CONTRACT INTO THE MAIN PUBLIC DEFENDER OFFICE HAS AN ETHICAL BUMP IN THE ROAD.

PROBABLY NOT GONNA COME TO GRIEF, BUT IT EXISTS AND SHOULD BE DISCUSSED.

BUT THE PROJECTIONS OF WHAT TO BE SPENT IN THAT OFFICE TO REPLACE OUR SERVICE ARE NOT ACCURATE.

THEY'RE WOEFULLY SHORT.

THEY DON'T TAKE ANY ACCOUNT OF DOWNSTREAM CHANGES IN EXPENSES TO THE COUNTY BEYOND THAT OFFICE.

BEFORE I'M DONE, I WANT TO REMIND THE BOARD THAT THOUGH IT LOOKS LIKE YOU'VE DONE A WONDERFUL JOB OF PRESERVING ACTUAL EMPLOYEES FOR THE COUNTY, 15 PEOPLE WILL BE LOSING THEIR EMPLOYMENT BY THIS CHANGE IN MY OFFICE, 15 LOCAL CITIZENS, NOT COUNTING INVESTIGATIVE STAFF.

ONE THING IS CERTAIN WITH A PRIVATE CONTRACT LIKE THIS, WE DON'T COME BACK AT THE END OF THE FISCAL YEAR AND SAY, "OH, WE'VE HAD A COST OVERRUN, WE NEED MORE." SO YOU WILL BE GETTING THAT REQUEST BECAUSE THE BUDGET PROJECTIONS ARE LOW.

THERE ARE SAVINGS THAT WE PROVIDE IN TERMS OF AVOIDING DOWNSTREAM EXPENSES THAT WE HOPE TO EXPLAIN TO EACH OF YOU BEFORE WE'RE DONE AND WORK WITH THE STAFF ABOUT THAT.

- GOOD MORNING, CHAIR AND SUPERVISORS.

- OH, ZERO, THANK YOU.

I'M HELEN EWAN-STOREY, I AM THE COO FOR COMMUNITY ACTION BOARD OF SANTA CRUZ COUNTY.

AND AS YOU KNOW, WE'RE CELEBRATING COMMUNITY ACTION MONTH THIS MONTH IN MAY, AND FOR OVER 60 YEARS, WE'VE BEEN A TRUSTED PARTNER IN PROVIDING CRITICAL SAFETY NET SERVICES, INCLUDING HOUSING SUPPORT, WORKFORCE DEVELOPMENT, YOUTH AND FAMILY AND COMMUNITY RESOURCES, IMMIGRATION LEGAL ASSISTANCE, AND CRISIS RESPONSE FOR THOUSANDS OF THE COUNTY'S MOST VULNERABLE LOW-INCOME RESIDENTS EVERY YEAR.

IN THIS DEEPLY CHALLENGING YEAR, WE SHARE YOUR CONCERN ABOUT THE FUNDING LANDSCAPE AND UNDERSTAND THE FEDERAL AND STATE PRESSURES AND IMPACTS.

WE ALSO GREATLY APPRECIATE THE COUNTY STAFF'S WORK IN DRAFTING A BALANCED BUDGET FOR '26, '27 THAT SHOWS A COMMITMENT TO SUSTAINING SAFETY NET SERVICES AND KEEPS CORE FUNDING WHOLE WHILE AIMING TO PROTECT AGAINST THE IMPACTS OF H.R. 1.

PRIORITIZING DIRECT SAFETY NET SERVICES FOR LOCAL RESIDENTS THIS YEAR IS ABSOLUTELY CRITICAL.

WE'VE HEARD THAT A NUMBER OF TIMES.

WE ARE HEARING EVERY DAY FROM FOLKS WHO ARE STRUGGLING EVEN, YOU KNOW, NOW MORE THAN EVER WITH BASIC NEEDS SUCH AS RENT ASSISTANCE.

AND WE KNOW THAT THEY NEED EQUITABLE CARE AND PRIORITIZATION IN THIS BUDGET.

AND SO THEREFORE, WE DO ENCOURAGE YOUR BOARD SUPPORT OF SUSTAINING THESE SAFETY NET SERVICES IN THE YEAR AHEAD.

WE ALSO WANT TO HIGHLIGHT THAT CAB HAS SUBMITTED A MEASURE Q PROPOSAL IN PARTNERSHIP WITH UCSC, FOCUSING ON NATURE ACCESS PROGRAMMING, CLIMATE RESILIENCY, ECOLOGICAL RESTORATION, WORKFORCE DEVELOPMENT FOR SOME OF THOSE MOST HIGHLY IMPACTED BY CLIMATE CHANGE, INCLUDING FARM WORKERS AND THE UNHOUSED FROM DAVENPORT TO THE PAJARO RIVER.

SO WE THANK YOU FOR YOUR ONGOING PARTNERSHIP AND COMMITMENT TO MAKING SURE THAT THOSE MOST IN NEED ARE PROTECTED AND SERVED DURING THIS DIFFICULT TIME.

THANKS SO MUCH.

[RUSTLES] - GOOD MORNING, MY NAME IS KATHRYN HEDGES AND I AGREE WITH THE SPEAKER BEFORE ME.

I'M A MEMBER OF SURGE SANTA CLARA, SORRY, SANTA CRUZ COUNTY, JUST MOVED HERE LAST YEAR TO DISTRICT ONE.

AND WE EMPHA- WE APPRECIATE YOUR EMPHASIS ON SOCIAL SAFETY NET SERVICES BECAUSE A THRIVING COMMUNITY IS A SAFER COMMUNITY.

SOME OF THE THINGS WE WANT TO MAKE SURE WE PRESERVE ARE FOOD ASSISTANCE AND BASIC MEDICAL SERVICES, THE MOBILE EMERGENCY RESPONSE TEAM, MERT, DAY SERVICES FOR PEOPLE FACING HOUSING INSTABILITY, THE PUBLIC DEFENDERS HOLISTIC DEFENSE MODEL AND COMMUNITY-BASED SERVICES FOR JUSTICE INVOLVED YOUTH, WHICH HAVE BEEN PROVEN TO PREVENT REPEAT OFFENSES.

ALSO ABOUT THREE OUT OF FOUR PEOPLE IN JAIL ARE AWAITING TRIAL, INCARCERATING THEM IS VERY COSTLY, OVER $100,000 PER PERSON ANNUALLY.

REDUCING THE POPULATION OF LOWER RISK PEOPLE IN JAIL WOULD SAVE A LOT OF MONEY.

PLEASE MAXIMIZE SPENDING ON THE SOCIAL SAFETY NET.

A THRIVING COMMUNITY IS A SAFER COMMUNITY.

[02:15:01]

[PAUSE] - GOOD MORNING, SUPERVISORS.

JIM WILLIAMS, MARINE CORPS, COMBAT PILOT, VIETNAM, AND ALSO IN MY FOURTH YEAR AS A PEER IN VETERANS DIVERSION COURT.

I'VE SEEN HOW VITAL A COUNTY SUPPORT PERSON IS BOTH IN AND OUTSIDE THE COURT, PARTICULARLY FOR VETS WHO ARE NOT VA QUALIFIED.

THE SUPPORT PERSON MONITORS AND ENCOURAGES THE VET'S RECOVERY PROGRESS, APPLIES RESOURCES TO FIND HOUSING, AND MOST IMPORTANTLY, HELPS MONITOR FOR SUICIDAL IDEATION AND ASSIST IN GATHERING A RESPONSE TEAM WHEN NEEDED.

THAT PERSON ALSO SUPPORTS VETS WITH CAREFUL ASSIGNMENT OF PEERS AND HELPS TO PROVIDE REGULAR PEER TRAINING.

A NOTABLE BENEFIT OF VETS COURT IS AN ALMOST NIL RECIDIVISM RATE, WHICH REDUCES FUTURE DRAIN ON COUNTY RESOURCES.

I BELIEVE THE COUNTY IS WELL SERVED BY PROVIDING A RESOURCE TO CONTINUE THAT VITAL WORK.

WE VETERANS THANK YOU FOR YOUR CONSIDERATION.

- GOOD MORNING, BOARD MEMBERS.

MY NAME IS TJ BREWER.

I'M AN EMPLOYEE AT THE PAGE FIRM.

I WORK FOR MITCHELL PAGE.

I WANTED TO SPEAK WITH YOU TODAY ABOUT THE PROPOSITION TO TERMINATE OUR CONTRACT BECAUSE WHAT IT IS GOING TO DO IS INCREASE CASELOADS FOR EVERY INDIGENT DEFENDER IN THIS COUNTY.

I HAVE BEEN AN INDIGENT DEFENDER IN THIS COUNTY SINCE 2018, MY WIFE SINCE 2016.

WE BOTH WORK FOR THE PAGE FIRM.

WHAT THIS PROPOSAL IS GOING TO DO IS SEE A SHIFTING OF COSTS FROM THE MAIN OFFICE TO THE NEW OFFICE YOU ARE CREATING, BUT WE'RE ALSO GOING TO SEE COSTS MOVING TO THE PANEL.

THE PANEL THAT IS ALREADY OVERWORKED AND CHARGES ATTORNEYS LIKE MYSELF WOULD CHARGE $140 AN HOUR TO WORK ON THE TYPES OF CASES THAT I CURRENTLY WORK ON AT THE PAGE FIRM.

I BELIEVE WHAT YOU ARE GOING TO SEE WITH THIS PROPOSED MODEL IS AN INCREASE IN THE NECESSARY SPENDING WITH THE PANEL, AND YOU'RE GOING TO SEE A LOT MORE CASES GOING THROUGH TO THE PANEL BECAUSE ATTORNEYS HAVE ETHICAL OBLIGATIONS NOT ONLY TO THEIR CURRENT CLIENTS, BUT TO ALL EXISTING CLIENTS.

SO ANY ATTORNEY THAT MOVES FROM ONE OFFICE TO THE OTHER IS GOING TO HAVE EXISTING RELATIONSHIPS THAT ARE GOING TO CREATE CONFLICTS THAT ARE GOING TO PASS CASES TO THE PANEL.

AND I THINK THE BOARD SHOULD STRONGLY CONSIDER THAT DOWNSTREAM EFFECT AND WHAT IT'S GOING TO DO TO THE CRIMINAL JUSTICE SYSTEM AND HOW IT'S GOING TO PASS COSTS DOWN FROM ONE DEPARTMENT TO ANOTHER.

SO ANY PROPOSED SAVINGS MAY BE SHORT-TERM, BUT IN THE LONG-TERM, WHAT YOU WILL SEE IS MORE CASES IN THE PANEL, MORE ATTORNEYS CHARGING HOURLY TO HANDLE CONFLICTS VERSUS NINE ATTORNEYS WORKING WITHIN THE OFFICE AT A LOWER RATE THAN $140 AN HOUR TO HANDLE THE CONTRACT.

[RUSTLES] - SEEING NO ONE ELSE IN THE ROOM, MADAM CLERK, WILL YOU PLEASE CALL THE FIRST CALLER? - YES.

[PAUSE] [RUSTLES] - CALL IN USER 789.

[PAUSE] AS A REMINDER, IT'S STAR NINE TO MUTE OR UNMUTE YOURSELF.

- HELLO, CAN YOU HEAR ME? - YES, WE CAN.

- HI, MY NAME IS KEVIN NORTON.

I LIVE IN THE CITY OF SANTA CRUZ AND I HAVE A BACKGROUND IN PUBLIC HEALTH.

IN 2022, THE COUNTY COMMITTED DIVISION ZERO, ZERO TRAFFIC DEATHS AND ZERO SERIOUS INJURIES BY 2030.

SINCE THEN, [RUSTLES] EXCUSE ME.

[PAUSE] SINCE THEN, MORE THAN 45 PEOPLE HAVE BEEN KILLED ON ROADS IN THE UNINCORPORATED COUNTY, AND OVER 3,300 HAVE BEEN REPORTED INJURED.

AND THAT DOESN'T EVEN INCLUDE THE NUMBERS FROM THIS YEAR.

WE DON'T HAVE A KNOWLEDGE PROBLEM.

WE HAVE A SPEED PROBLEM.

WE KNOW WHAT WORKS.

QUICK BUILD PROTECTED BIKE LANES AND SAFETY IMPROVEMENTS.

QUICK BUILD PROJECTS ARE LOW COST, FAST AND INEFFECTIVE.

THEY CAN BE INSTALLED IN MONTHS, NOT YEARS.

AND QUICK BUILD PROJECTS DON'T JUST PROTECT PEOPLE BIKING, THEY PRODUCE INJURIES FOR EVERYONE.

RIGHT NOW, WE'RE RELYING ON LARGE CAPITAL PROJECTS THAT TAKE YEARS OR DECADES AND DEPEND ON UNCERTAIN GRANTS.

AT THAT PACE, WE WILL NOT REACH DIVISION ZERO BY 2030.

[02:20:01]

BUT WITH QUICK BUILD, WE DON'T HAVE TO WAIT.

CITIES AND COUNTIES ACROSS CALIFORNIA ARE ALREADY USING QUICK BUILD TO SAVE LIVES RIGHT NOW.

FOR EXAMPLE, THE CITY OF SAN LUIS OBISPO CREATED A MILE LONG PROTECTED BIKE LANE FOR $15,000 AND INSTALLED IT IN LESS THAN A WEEK.

YOU HEARD THAT RIGHT, IT COSTS JUST $15,000.

SO AS YOU DEVELOP THIS BUDGET, I'M ASKING YOU TO COMMIT MEANINGFUL GENERAL FUND DOLLARS TO QUICK BUILD SAFETY IMPROVEMENTS ON OUR MOST DANGEROUS STREETS.

THIS IS A CHANCE TO ACT WITH URGENCY.

WITH QUICK BUILD, YOU CAN BOTH SAVE LIVES AND IMPROVE COMMUNITY HEALTH WITHIN A YEAR, NOT A DECADE.

[PAUSE] - MARIAELENA, YOUR MICROPHONE .

IS NOW AVAILABLE.

- GOOD MORNING, CHAIR AND BOARD OF SUPS.

THIS IS MARIAELENA DE LA GARZA FROM COMMUNITY ACTION BOARD OF SANTA CRUZ COUNTY.

I WANT TO START BY UPLIFTING THE URGENT NEEDS OF OUR IMMIGRANT COMMUNITY.

RIGHT NOW, MANY RESIDENTS ARE FEARFUL AND UNCERTAIN ABOUT THEIR ACCESS TO RESOURCES AND PROTECTIONS.

WHILE WE'RE GRATEFUL FOR THE INVESTMENTS MADE BY YOUR BOARD LAST YEAR, WE RESPECTFULLY ASK FOR CONTINUED INVESTMENT IN THE UPCOMING FISCAL YEAR AS THE IMPACTS ARE NOT ONLY DEEPENING, BUT BROADENING.

WE'RE GRATEFUL TO PARTICIPATE IN SHIELD, TO LEAD THE SANTA CRUZ COUNTY IMMIGRANT COLLABORATIVE, TO PROVIDE LEGAL IMMIGRATION SERVICES FOR OVER 35 YEARS IN OUR COMMUNITY.

AND WE ENCOURAGE THE COUNTY TO CONTINUE LEANING ON CAB AS A TRUSTED PARTNER TO ADDRESS LOCAL IMMIGRANT NEEDS.

FINALLY, AS WE FACE ONGOING STATE AND FEDERAL UNCERTAINTIES, WE REMAIN CONCERNED ABOUT THE SUSTAINABILITY OF HOPE VILLAGE AND OTHER LOW BARRIER HOUSING NAVIGATION CENTERS AND SHELTERS AS WE ENTER THE NEXT FUNDING YEAR.

WE'RE WALKING ON THIS PATH BECAUSE WE BELIEVE THAT EVERYONE DESERVES A SAFE AND DIGNIFIED HOME.

WE AGREED TO PARTNER WITH YOU AND OUR NEIGHBOR COUNTY TO OPERATE HOPE VILLAGE AND OPEN THOSE DOORS.

WE OPENED IN FEBRUARY.

WE CURRENTLY ARE SERVING 31 GUESTS WHO RECEIVE WRAPAROUND SERVICES IN A WARM BED EVERY NIGHT.

ONE HAS ALREADY BEEN PLACED IN A JOB, THREE HAVE ALREADY BEEN HOUSED, AND TWO ARE ALMOST HOUSED.

WE INVITE YOU, MAY 18TH, TO OUR OFFICIAL RIBBON CUTTING.

THESE PROGRAMS ARE ESSENTIAL LIFELINES AND THEIR CONTINUITY MATTERS.

LIKE YOU, WE ARE CONCERNED ABOUT THE SUSTAINABILITY OF THESE SERVICES.

THANK YOU TO OUR COUNTY PARTNERS AND DEPARTMENT LEADS FOR WORKING WITH US IN TRUST AND TRANSPARENCY.

AND WE WANT TO HIGHLIGHT THE IMPORTANCE OF SERVING THE IMMIGRANT COMMUNITY AND SERVING OUR UNSHELTERED COMMUNITY.

- BERNIE, YOUR MICROPHONE IS NOW AVAILABLE.

- GOOD MORNING, BOARD, CHAIR, AND THE PUBLIC.

BERNIE GOMEZ OF THE MILPA I'M GONNA KEEP THIS SHORT.

I THINK WE NEED TO LOOK AT THIS PUBLIC SAFETY AND JUSTICE...

SECTOR, RIGHT? AND REALLY THINK ABOUT WHAT IS PUBLIC SAFETY? HOW ARE WE ACTUALLY FUNDING THE...

THE SAFETY OF OUR COMMUNITY, RIGHT? WHAT IS...

WHAT DO PEOPLE CONSIDER BEING SAFE? LOOKS LIKE, YOU KNOW, IS IT...

PATROLLING, INCARCERATING, DEFENDING, PROSECUTING, JUDGING, RIGHT? OR SAFETY ACTUALLY LOOKS LIKE BEING HEALTHY, HAVING ACCESS TO MEDICAL SERVICES, HAVING FOOD ON YOUR TABLE, HAVING A JOB TO GO TO, RIGHT? SO I JUST THINK THAT THIS BOARD REALLY NEEDS TO LOOK AT THAT SECTOR AND LOOK HOW IT'S FUNDING IT.

YES, EVERYBODY WANTS TO BE FULLY STAFFED, YOU KNOW, AND WANTS TO, YOU KNOW, PROMOTE THEIR DEPARTMENTS AND STUFF, BUT TO PROVIDE ADDITIONAL RAINY DAY FUNDS TO A DEPARTMENT THAT ALREADY RECEIVES THE BIGGEST CUT FROM A GENERAL FUND IS UNACCEPTABLE DURING THIS TIME OF UNCERTAINTY.

SO WITH THAT, I JUST REALLY THINK WE SHOULD, YOU KNOW, WE HAVE TO LOOK AT THOSE THINGS.

IT'S NOT AN EASY THING, RIGHT? IT'S NOT SOMETHING THAT I THINK Y'ALL WANT TO DO, BUT YOU NEED TO DO IT.

BECAUSE THAT'S WHERE THE MONEY'S GOING AND LEAVE IT AT THAT.

[PAUSE] - CALL IN USER 915.

- HELLO, CAN YOU HEAR ME? - YES.

[PAUSE]

[02:25:02]

MY NAME IS BECKY STEINBRUNER AND I WANT TO APPLAUD THE SUPERVISORS FOR REALLY QUESTIONING THE APPROACH HERE THAT TO ME ALSO LOOKS LIKE IT'S KICKING THE CAN DOWN THE ROAD.

I WANT TO THANK ESPECIALLY SUPERVISOR KOENIG FOR POINTING OUT THAT IT WOULD BE BETTER MONEY SPENT TO REPAIR CULVERTS THAN HIRE A NUMBER OF NEW ANALYSTS IN OR3 TO MANAGE BUDGETS.

I REALLY THINK A LOT OF THAT MAY HAVE COME FROM THE MEASURE Q MONEY AND THE BIG JOB THAT THE OR3 NOW HAS.

I MARVEL EVERY TIME I GO BY THE BRAND NEW LAND TRUST OFFICE, A TWO STORY BUILDING NEAR THE CITY LIBRARY.

THEY USED TO BE IN A VERY SMALL BUILDING ON WATER STREET.

AND NOW THAT THEY'VE GOT A LOT OF MONEY, THEY'VE GOT A LOT OF MORE SPACE.

SO THAT HAS TO BE ADDRESSED.

THIS OPULENCE MUST STOP.

I WANT TO FIND OUT WHY NO TALK WAS MADE OF THE COUNTY'S UNFUNDED CALPERS PENSIONS.

THAT'S A HUGE PIECE THAT IN PAST BUDGETS WAS LOOMING LARGE ON THE BUDGET DEFICIT, BUT IT WAS NOT EVEN MENTIONED.

I WANT TO REQUEST THAT THE COUNTY LOBBY OUR STATE TO UNDO THE ERAF, THE EDUCATIONAL REVENUE AUGMENTATION FUND THAT STOLE MONEY AND CONTINUES TO STEAL MONEY FROM LOCAL JURISDICTIONS TO REQUIRE COUNTIES TO FUND EDUCATION.

AND THAT WAS DONE BACK IN THE 90S AND IT IS STILL ONGOING.

IT HAS TO STOP.

I WANT TO THANK MR. BRUCE HOLLOWAY FOR INSISTING THAT MEASURE K MONEY BE ALLOCATED TO THE ISSUES THAT VOTERS UNDERSTOOD IT WOULD BE.

AND THAT'S WHAT NOW HAS RESULTED IN 50% RESTRICTED FUNDING OPPOSED TO MEASURE G, WHICH IS JUST GOING INTO THE GENERAL. - THANK YOU.

I'LL NOW RETURN TO THE BOARD FOR DISCUSSION AND A MOTION.

I'LL START WITH SUPERVISOR KOENIG.

ONE THING THAT I DIDN'T MENTION QUESTIONS, WHICH I DID WANT TO JUST BRING UP NOW IS RELATED TO PARKS.

AND I SEE THAT THE PARKS BUDGET IS DEPENDING ON LAUNCHING A PARKING FEE PILOT AND SELECT REGIONAL COUNTY PARKS, CREATING A NEW MODEST REVENUE SOURCE WHILE MANAGING VISITOR DEMAND.

AND I MEAN, I'VE HAD SOME DISCUSSIONS WITH OUR PARKS DIRECTOR ABOUT THIS.

I KNOW THAT THERE'S MAYBE A SHORT LIST OF PARKS THAT ARE BEING CONSIDERED FOR THIS.

I JUST, I THINK IT'S PROBABLY A PRETTY BAD TIME TO TRY TO START CHARGING PEOPLE PARKING FEES WHEN THEY'RE TAKING THEIR KIDS TO LITTLE LEAGUE.

IF ANYONE TRACKED THE CONVERSATION DOWN IN SAN DIEGO, ONE OF THE MOST CONTROVERSIAL TOPICS RIGHT NOW DOWN THERE IS CHARGING FOR PARKING AT BALBOA PARK, WHICH IS ARGUABLY MUCH MORE TOURIST FOCUSED THAN SOME OF OUR NEIGHBORHOOD PARKS.

AND SO I THINK THAT A LOT OF PEOPLE WOULD JUST FEEL DOUBLE CHARGED FOR THEIR PARKS.

NOT TO MENTION THE STATE OF OUR PARKS IS PRETTY DISMAL.

IF YOU GO TO ANNA JEAN CUMMINGS, THERE'S A SLIDE THAT'S GOT A CRACK WRAPPING AROUND THE EDGE.

IT'S CLOSE TO SNAPPING.

THE POOR RUBBER SURFACE IS PEELING OFF IN HUGE STRIPS.

WINKLE PARK, THE PLATFORM'S JUST RUSTED THROUGH AND SNAPPED.

SO THE WHOLE PLAYGROUND IS CLOSED AND MAY NEVER BE REOPENED.

SIMPKINS SWIM CENTER'S LAP POOL IS CLOSED FOR THE BETTER PART OF TWO WEEKS.

THE WOMEN'S SHOWER HAS INTERMITTENT HOT WATER.

I MEAN, THE LIST GOES ON AND ON.

AND MY UNDERSTANDING IS IT'S CLOSE TO $90 MILLION IN DEFERRED MAINTENANCE FOR OUR PARKS.

AND THAT CERTAINLY IS A LIABILITY.

SO FIRST OF ALL, I DON'T THINK IT'S A GREAT LOOK TO SAY, "HEY, WELCOME TO OUR PARKS.

THAT'LL BE $5 AND GO ENJOY THE BROKEN SLIDE." ALTHOUGH I DO ABSOLUTELY RECOGNIZE THE NEED FOR URGENT MONEY FOR MAINTENANCE AT OUR PARKS.

AND ACTUALLY, I MEAN, TO THAT EFFECT, I THINK THAT OUR BOARD SHOULD SERIOUSLY LOOK AT HOW WE ALLOCATE THE MEASURE K MONEY FOR PARKS.

YOU KNOW, I CERTAINLY ENJOY THE ABILITY TO HAVE SOME DISCRETIONARY ABILITY THERE, BUT THE REALITY IS THAT IT CREATES, WITH FIVE BOARD OFFICES HAVING DISCRETIONARY PROJECTS, IT CREATES ONE OR FIVE TO 15 NEW PROJECTS THAT THE PARKS DEPARTMENT HAS TO MANAGE.

AND IT MEANS THAT THIS DEFERRED MAINTENANCE IS NOT GETTING DONE.

AND SO, YOU KNOW, AS PAINFUL AS IT IS, I WOULD ACTUALLY SUGGEST THAT WHEN WE LOOK AT THE PARKS BUDGET SPECIFICALLY, WE LOOK AT THE OPTION.

WELL, FIRST OF ALL, I WOULD REQUEST THAT WE DO A SORT OF A DEEP DIVE ON SOME OF THE DEFERRED MAINTENANCE AT OUR PARKS.

[02:30:02]

AND THAT ULTIMATELY WE LOOK AT THE OPTION OF ALLOCATING THE MEASURE K MONEY FOR PARKS ENTIRELY TO EMERGENCY MAINTENANCE NEEDS.

I DON'T KNOW IF THAT NEEDS TO BE MADE AS A MOTION, BECAUSE IT'S SOMETHING THAT WE'LL CONSIDER AT THE PARKS.

IT CAN BE CONSIDERED DURING THE PARKS BUDGET HEARING SPECIFICALLY, BUT I JUST WANTED TO PUT THAT OUT THERE AS A COMMENT, SOMETHING ELSE THAT IS KEEPING ME UP AT NIGHT.

THANKS.

SUPERVISOR CUMMINGS? - THANK YOU, CHAIR.

I WILL JUST START BY SAYING THAT I WOULDN'T BE VERY SUPPORTIVE OF THAT BECAUSE OF THE FACT THAT I DON'T HAVE ANY PARKS IN MY DISTRICT.

AND SO WHILE I DO UNDERSTAND THERE'S OTHER DISTRICTS THAT HAVE EMERGENCY NEEDS IN TERMS OF THE PARKS, I WOULD JUST ENCOURAGE BOARD MEMBERS TO ALLOCATE THEIR FUNDS TO SUPPORT THOSE EFFORTS AND WORK WITH OTHER BOARD MEMBERS WHO MIGHT BE WILLING TO USE SOME OF THEIR FUNDS TO HELP THOSE NEEDS.

I WILL SAY THAT FOR MY DISTRICT, WE'VE BEEN REALLY ABLE TO USE THOSE FUNDS.

WE'RE LOOKING AT A STUDY POTENTIALLY TO GET ONE OF OUR FIRE STATIONS BACK UP AND RUNNING AS A NATIONALLY CERTIFIED FIRE STATION.

WE'RE ALSO USING THAT FUNDING TO MOVE FORWARD WITH PUBLIC SAFETY AND ENVIRONMENT STUDIES ON CEMENT PLANT ROAD.

WE'RE LOOKING AT PARKING IMPROVEMENTS THAT WILL HELP INCREASE ACCESS AT SHARK FIN COVE.

AND SO I DO THINK IT'S REALLY IMPORTANT FOR US TO KEEP OUR DISCRETIONARY FUNDS, ESPECIALLY GIVEN THAT SOME FOLKS DON'T HAVE AS MANY PARKS OR ANY PARKS IN THE DISTRICT.

BUT JUST TO KIND OF SUMMARIZE MY COMMENTS, I JUST WANT TO START BY THANKING STAFF FOR PUTTING TOGETHER THIS BUDGET DURING AN EXTREMELY CHALLENGING TIME.

AND, YOU KNOW, I THINK ONE OF THE THINGS THAT IT ACCOMPLISHED WAS REALLY ENSURING THE WORKERS THAT WE ARE NOT CUTTING JOBS AT THIS TIME.

I APPRECIATE THE COST SAVINGS THAT HAVE BEEN RECOMMENDED AND THE PRESERVATION OF OUR EMPLOYEES.

AS I MENTIONED, I JUST WANT TO REMIND MEMBERS OF OUR COMMUNITY THAT WE ARE LIVING IN A TIME OF CHAOS AND COMPLETE UNCERTAINTY.

WE DON'T KNOW WHAT THE STATE WILL DO.

WE KNOW THAT THE COMING YEARS DON'T LOOK GOOD, BUT WE HAVE TO TRY TO GET THROUGH THESE SHORT-TERM AND HOPEFULLY LONG-TERM PICTURE WILL BE IMPROVED, ESPECIALLY AFTER THE NOVEMBER ELECTIONS OF THIS YEAR.

AND WE'LL SAY THAT WHILE WE'RE DIPPING INTO OUR RESERVES, WE ARE IN TIME OF AN EMERGENCY.

I'M ACTUALLY REALLY CONCERNED AND SOMEWHAT DISAPPOINTED THAT WE HAVEN'T ACTUALLY DECLARED THE EMERGENCY YET BECAUSE THAT IS OUR REALITY.

AND WHILE I HEARD STAFF SAY SOMETHING ABOUT IF WE DECLARE AN EMERGENCY, WE HAVE TO REOPEN CONTRACTS, THAT'S NOT A REQUIREMENT OF DECLARING AN EMERGENCY.

BUT WHAT IN DECLARING AN EMERGENCY DOES IS IT MAKES SURE THAT THE COMMUNITY IS AWARE THAT...

WE MAY HAVE TO DO SOME THINGS THAT ARE UNPRECEDENTED.

WE HAVE A BILL RIGHT NOW THAT'S MOVING THROUGH THE STATE SENATE TO INCREASE OUR SALES TAX BY A VOTE OF THE PEOPLE.

AND I THINK THAT EVEN IF WE GET THROUGH THE MAY REVISE, THE REALITY IS THAT WE'RE LIKELY GONNA STILL NEED SOME OF THIS TAX MEASURE TO GO THROUGH OR SOMETHING THAT'S GONNA HELP US WITH SOME LONG-TERM CHALLENGES WE'RE GONNA FACE.

THE OTHER THING I WANT TO EXPRESS IS THAT I'M STRONGLY OPPOSED TO US BRINGING IN THE ALTERNATIVE PUBLIC DEFENDERS WORK AND ELIMINATING THE CONTRACT OF PAGE AND DUDLEY.

PAGE AND DUDLEY HAVE HAD A LONG-TERM RELATIONSHIP WITH THE COUNTY AND HAVE BEEN PROVIDING REALLY GOOD SERVICES FOR OUR COUNTY.

AND GIVEN ALL THE UNCERTAINTY THAT EXISTS NOW, I DON'T THINK IT'S THE TIME TO BUILD OUT A NEW DIVISION.

AND GIVEN THAT WE'VE NEVER HAD A DISCUSSION AS A BOARD, WE'VE NEVER HAD A DISCUSSION ABOUT TRANSFERRING THESE SERVICES IN-HOUSE.

I JUST WANT TO EXPRESS THAT I DON'T SUPPORT MOVING FORWARD WITH ELIMINATING THE PAGE AND DUDLEY CONTRACT AND WOULD WELCOME A CONVERSATION TO TRY TO PRESERVE THESE SERVICES AND UNDERSTAND THE COSTS AND BENEFITS AND TRADE-OFFS OF THOSE SERVICES.

I BELIEVE THIS WILL LIKELY INCREASE THE COST AND CASELOADS FOR COUNTY WORKERS.

I DON'T THINK WE SHOULD BE MOVING FORWARD WITH THAT TRANSITION AT THIS TIME.

AND THEN AGAIN, I JUST WANT TO REMIND US THAT, YOU KNOW, WE ARE IN AN ELECTION YEAR.

AND THIS NOVEMBER, WE MAY SEE A CHANGE IN OUR CONGRESS.

WE MAY SEE A CHANGE IN THE SENATE, WHICH COULD POTENTIALLY RESULT IN MAJOR CHANGES AT THE FEDERAL LEVEL.

SO AS WE WEATHER THE CHAOS, I THINK WE NEED TO BE NIMBLE AND TRY TO WORK TOWARDS FIGURING OUT HOW WE CAN ADDRESS THE ISSUES NOW, AND THEN LOOK FOR LONGER TERM SOLUTIONS MOVING FORWARD.

AND I WILL SAY TO SUPERVISOR KOENIG'S COMMENTS, I DO ALSO SHARE SOME CONCERNS WITH THE PARKING FEE FOR PARKS AT THIS MOMENT IN TIME.

I MEAN, GAS IS LIKE 6.50 OR 6.30, 6.50 RIGHT NOW.

IT'S ONLY GOING UP.

EVERYBODY'S FEELING REALLY SQUEEZED RIGHT NOW.

SO WHILE I'M SYMPATHETIC TO PARKS AND WANTING TO HELP GENERATE REVENUE THAT CAN HELP SUPPORT SOME OF THEIR INFRASTRUCTURE, YOU KNOW, I DO QUESTION WHETHER HAVING THOSE PARKING FEES COME FORWARD RIGHT NOW IS A GOOD IDEA, JUST BECAUSE EVERYBODY IS SO STRAPPED FOR CASH THESE DAYS.

AND THAT WOULD BE ONE MORE COST TO PROVIDING ACCESS TO OPEN SPACES

[02:35:01]

THAT WOULD JUST BE ANOTHER BURDEN AND HURDLE FOR MANY FAMILIES, ESPECIALLY LOW INCOME FAMILIES WHO ARE REALLY BEING HURT RIGHT NOW.

SO JUST WANT TO THANK YOU ALL FOR YOUR HARD WORK ON THIS.

I DON'T KNOW IF MY OPPOSITION NEEDS TO BE ENTERED FORMALLY INTO A MOTION, OR IF WE CAN HAVE THAT DISCUSSION WHEN WE DISCUSS THE PUBLIC DEFENDER'S CONTRACT, BUT I DO WANT TO JUST EXPRESS THAT I'M NOT SUPPORTIVE OF ELIMINATING THE PAGE AND DUDLEY CONTRACT AND BRINGING THE ALTERNATIVE PUBLIC DEFENDER'S OFFICE IN HOUSE.

- THANK YOU, SUPERVISOR CUMMINGS.

I BELIEVE THAT SINCE WE'RE NOT TAKING ACTION OR PROVIDING DIRECTION ON A FUTURE BOARD, THEN I DON'T THINK WE NEED THAT IN THE MOTION.

IT'S A MATTER OF COMMENT.

DO YOU AGREE, CEO COBURN? NO, WE'RE GONNA HAVE THE PUBLIC DEFENDER'S BUDGET PRESENTATION AND ACTIONS ON JUNE 10TH.

AND SO IF THE BOARD DECIDES NOT TO INCLUDE THAT IN THE BUDGET, THEN YOU COULD TAKE ACTION AT THAT TIME AND DIRECT US TO RETURN WITH AN ALTERNATIVE PROPOSAL.

- SUPERVISOR HERNANDEZ? - WHEN THE ITEM COMES BACK, WE WILL SEE KIND OF THE COMPARATIVE OF GOING IN IN-HOUSE AND KEEPING THE SERVICES OF MITCHELL PAGE.

- CORRECT, WE'LL HAVE A THOROUGH PRESENTATION ON WHAT IT MEANS.

AND WE'VE HEARD SOME OF THE BOARD'S CONCERNS AND CONCERNS IN THE COMMUNITY.

SO I'LL WORK WITH THE PUBLIC DEFENDER AND STAFF TO MAKE SURE THAT'S ALL ADDRESSED SO YOU KNOW WHAT THAT MEANS ON JUNE 10TH.

YOU KNOW, I HAVE TO SAY WE WORKED REALLY HARD ON MEASURE K AND YOU KNOW, AND IT'S ALSO IT'S FUNDING PRIORITIES.

SO I DON'T THINK I WOULD SUPPORT SHIFTING ANY MEASURE K FUNDS.

I THINK WE PUT IT OUT TO THE VOTERS FOR ONE REASON AND TO SHIFT IT ALL OF A SUDDEN WOULDN'T BE GREAT GOOD FOR THE VOTERS.

YOU KNOW, I DO HAVE ONE PARK THAT HAS SOME DEFERRED MAINTENANCE THAT WE'RE WORKING ON AND ONE NEW ONE THAT HAS NO AMENITIES YET.

SO, YOU KNOW, I UNDERSTAND WHERE SUPERVISOR KOENIG IS COMING FROM, BUT I THINK IN THE END, I WANT TO MAKE SURE THAT WE STILL CONTINUE TO PRIORITIZE PRESERVING OUR WORKFORCE, PRESERVING OUR SAFETY NET, SPECIFICALLY WITH FOOD INSECURITY AND HOUSING DURING THIS TIME, DURING THIS TOUGH BUDGET TIME.

AND THAT'S IT.

SUPERVISOR DE SERPA? - CAN I MAKE A MOTION TO ACCEPT THIS BUDGET? - SO MOVED.

- WE HAVE A MOTION FROM SUPERVISOR DE SERPA.

A SECOND FROM SUPERVISOR HERNANDEZ.

I'LL JUST SHARE A FEW COMMENTS.

ONCE AGAIN, I'M REALLY GRATEFUL TO THE STAFF FOR, FIRST OF ALL, GIVING THE BOARD AN OPPORTUNITY TO WEIGH IN ON OUR FOUNDATIONAL PRINCIPLES BACK IN MARCH.

IT'S CLEAR THAT YOU TOOK THAT GUIDANCE AND PUT IT FORTH IN A PLAN THAT PRESERVES OUR WORKFORCE, PARTICULARLY, WELL, ALL OUR JOBS, BUT ESPECIALLY THE REVENUE GENERATING JOBS AND PROTECTS OUR SAFETY NET.

YOU KNOW, AT THIS TIME WHEN WE'RE SEEING ATTACKS ACROSS THE FEDERAL GOVERNMENT ON OUR COMMUNITY, THE COUNTY IS THE LAST LINE OF DEFENSE.

AND SO I BELIEVE THE BUDGET IS A REFLECTION OF OUR VALUES AND WE ARE A COUNTY THAT STANDS UP FOR OUR RESIDENTS, FOR OUR IMMIGRANTS, FOR OUR UNHOUSED.

AND I'M REALLY GRATEFUL FOR EVERY EFFORT THAT THE STAFF IS MAKING TO CONTINUE TO INVEST AND PROTECT THE SAFETY NET, OUR FOOD STABILITY, HOUSING, AND OF COURSE THE ELIGIBILITY WORKERS WHO HELP PEOPLE BE ELIGIBLE FOR THESE SERVICES.

I ALSO AM REALLY GRATEFUL FOR THE NEW BUDGET TOOL.

I'LL BE HONEST, I WAS UP WAY TOO LATE LAST NIGHT GEEKING OUT ON ALL OF THE VARIOUS PAGES AND OPTIONS AVAILABLE ON THAT.

SO FOR WHOEVER WAS A PART OF PUTTING THAT TOGETHER, THANK YOU FOR THAT.

IT WAS... I ENCOURAGE PEOPLE TO TAKE A LOOK.

IT'S VERY INFORMATIVE.

EVEN IF YOU THINK YOU KNOW A LOT ABOUT THE COUNTY, YOU'RE GONNA LEARN A LOT IF YOU START CLICKING THROUGH THE BUDGET TOOL.

AND I THINK I'LL JUST CONCLUDE IN SAYING THAT THERE ARE GOING TO BE TOUGH DECISIONS BEFORE THE BOARD.

I THINK FOR EVERY SOLUTION YOU PROPOSED, YOU HEARD AT LEAST ONE BOARD MEMBER SAYING, "WELL, I DON'T REALLY, I'M NOT SURE I LIKE THAT." AND THERE IS A TIME WHEN THERE'S GONNA NEED TO BE GIVES AND TAKES.

THERE'S GONNA HAVE TO BE HARD CHOICES.

IF WE PUT SOMETHING BACK IN, SOMETHING ELSE NEEDS TO COME OUT.

AND SO I'M JUST ASKING THE STAFF

[02:40:02]

TO BE REALLY CLEAR TO THE FIVE OF US ABOUT WHAT THOSE CHOICES ARE, TO CONTINUE TO LEAN ON THOSE FOUR FOUNDATIONAL PRINCIPLES THAT WE ADOPTED IN MARCH.

AND, YOU KNOW, TO PROVIDE US WITH THE INFORMATION THAT WE NEED SO WE CAN BEST REPRESENT OUR RESIDENTS AND OUR COMMUNITY IN PASSING A BUDGET DURING THESE UNCERTAIN TIMES.

SO WITH THAT, WE HAVE A MOTION AND A SECOND.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - NOT USED TO BE IN FIRST, AYE.

MOTION PASSES FIVE TO ZERO.

SO WE ARE ABOUT AN HOUR LATE FOR OUR SCHEDULED ITEM, WHICH WAS SCHEDULED FOR 10:45.

SO WE'RE GONNA MOVE ON TO THAT ITEM RIGHT NOW.

I'M GONNA ALLOW JUST A FEW SECONDS FOR PEOPLE TO CLEAR THE ROOM WHILE STAFF COME UP AND PREPARE FOR OUR SCHEDULED ITEM, WHICH IS ITEM NUMBER 18.

[18. 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 7 to convene and carry out a regularly scheduled meeting]

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 7 TO CONVENE AND CARRY OUT A REGULARLY SCHEDULED MEETING.

WELCOME AND CHAIRING THIS MEETING, I WILL TURN IT OVER TO SUPERVISOR DE SERPA.

WE DID HAVE SOME MEMBERS OF ZONE 7 THAT WERE WAITING TO...

WAITING FOR THIS ITEM TO COME ONLINE.

ARE THEY WITH US? NANCY BILICICH, FOR EXAMPLE.

- NEXT? - YES, I DO SEE THAT NANCY IS ONLINE.

YOU MAKE SURE THAT SHE'S ANSWERING.

- I'M PROMOTING HER AT THIS TIME SO SHE WILL BE ABLE TO SPEAK AS NEEDED.

[PAUSE] - WE HAVE...

- SORRY, CAN I ASK WHAT'S HAPPENING WITH DIRECTOR BILICICH RIGHT NOW? - SHE'S ONE OF THE NON-VOTING MEMBERS AND SHE'S PARTICIPATING ONLINE VIA ZOOM.

- SO WE NEED A QUORUM...

- YEAH, BUT SHE'S... - ...OF OUR MEMBERSHIP FOR ZONE 7 AND SHE HAD BEEN WAITING FOR MORE THAN AN HOUR TO GET ON. - YEAH, BUT....

- SO I'M JUST MAKING SURE THAT WE HAVE A QUORUM.

- SURE, BUT SHE CAN'T APPEAR REMOTELY.

SO SHE WOULDN'T ADD TO A QUORUM FOR YOUR BOARD. - OH.

- THAT'S WHY YOU'RE ASKING.

GOT IT.

[PAUSE] - OKAY, I BELIEVE WE WILL BE PREPARED TO BEGIN.

- OKAY, GREAT.

I CALL TO ORDER.

THE COUNTY OF SANTA CRUZ FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 7 FOR MAY 5TH, 2026.

MADAM CLERK, WILL YOU PLEASE TAKE A ROLL CALL? - YES, DIRECTOR KOENIG? - HERE.

- DIRECTOR HERNANDEZ? - HERE.

- MARTINEZ? - PRESENT.

- CUMMINGS? - HERE.

- CLARK? [PAUSE] CULBERTSON? AND FOR THE RECORD, WE HAVE NON-VOTING MEMBER BILICICH ONLINE AS A NON-PARTICIPATING ATTENDEE.

[PAUSE] - AND DE SERPA.

- AND OF COURSE, CHAIR DE SERPA.

NEXT ITEM IS CONSIDERATION OF ADDITIONS OR DELETIONS TO THE CONSENT OR REGULAR AGENDA.

DO WE HAVE ANYTHING TO ADD? NO.

OKAY, SEEING NONE.

YES, SORRY, YES.

[PAUSE] - YES, SO WE WOULD LIKE TO JUST DRAW YOUR ATTENTION TO A CORRECTION ON NUMBER SIX, IT SAYS HERE.

AND THAT INCLUDES JUST THE REMOVAL OF A REFERENCE TO A BUDGET WEBSITE LINK.

AND INSTEAD, WE HAVE INCLUDED AN ATTACHMENT WITH A BUDGET SUMMARY.

SO THAT IS ALSO AN ADDITION.

AND FOR THE RECORD, WILL STAFF INTRODUCE, WILL YOU INTRODUCE YOURSELF? - OH, ABSOLUTELY, SORRY ABOUT THAT.

CAROLYN BURKE, ASSISTANT PUBLIC WORKS DIRECTOR, OVERSEEING SPECIAL SERVICES.

AND I'M JOINED BY RODNEY TRUJILLO.

HE'S OUR SENIOR CIVIL ENGINEER WHO OVERSEES OUR STORMWATER AND FLOOD CONTROL SECTION.

MOVING ON TO ITEM THREE, ORAL COMMUNICATIONS.

[02:45:02]

THIS IS THE TIME FOR PUBLIC COMMENT ON ITEMS LISTED ON TODAY'S CONSENT AGENDA, ITEMS NOT YET HEARD ON THE REGULAR AGENDA OR MATTERS WITHIN THE JURISDICTION OF THE ZONE 7 BOARD.

ARE THERE ANY SPEAKERS TODAY? [PAUSE] ANYONE IN THE PUBLIC OR ONLINE? - CHAIR, YES, WE HAVE A SPEAKER ONLINE.

[PAUSE] - CALL ON USER 915.

[PAUSE] PROCEED.

- HELLO, CAN YOU HEAR ME? - YES, WE CAN.

- GOOD MORNING, THANK YOU.

THIS IS BECKY STEINBRENNER.

I WANT TO URGE THE FLOOD CONTROL DISTRICT TO PAY SPECIAL ATTENTION TO CLEARING THE WATERWAYS IN ALL AREAS OF THIS FLOOD DISTRICT.

IT HAS BEEN SHOWN THAT OFTENTIMES IN, SUCH AS WHAT WE ARE MAYBE LOOKING AT THE EL NIÑO WINTERS, WHEN THOSE CHANNELS ARE COMPACTED OR FILLED UP WITH VEGETATION, THEY OFTEN CAUSE PROBLEMS. AND OFTEN THOSE... THE DEBRIS WILL LODGE AGAINST BRIDGES, GET CAUGHT IN CULVERTS AND CAUSE FURTHER PROBLEMS. SO I REQUEST THAT THIS FLOOD CONTROL DISTRICT PAY SPECIAL ATTENTION TO MAINTENANCE OF ALL DRAINAGE WAYS AND CULVERT REPLACEMENTS WORKING WITH THE COUNTY PUBLIC WORKS.

HEARING NO FURTHER SPEAKERS, WE'LL CLOSE ORAL COMMUNICATIONS AND MOVE ON TO OUR CONSENT AGENDA.

DO WE HAVE A MOTION? - SO MOVED.

- I'LL SECOND APPROVAL OF CONSENT.

ALL THOSE IN FAVOR? - AYE. - AYE.

- CHAIR, IF I MAY, I DO BELIEVE FOR THE RECORD WITH A PARTICIPANT REMOTE, WE NEED TO CONDUCT A ROLL CALL VOTE.

DIRECTOR HERNANDEZ? - AYE.

- MARTINEZ? - AYE.

[PAUSE] MOVING ON TO ITEM SIX, THE FISCAL YEAR '26-'27 PROPOSED BUDGET FOR ZONE 7.

- AND DE SERPA? - AYE.

[PAUSE] THANK YOU.

I'LL TURN IT OVER TO STAFF FOR A BRIEF REPORT.

THANK YOU, CHAIR AND DIRECTORS.

THE ITEM BEFORE YOU IS AS DESCRIBED.

I WOULD JUST LIKE TO SHARE WITH YOU THAT ON MARCH 24TH, 2026, THE BOARD APPROVED A RESOLUTION CONFIRMING THE INCREASE IN ASSESSMENTS.

AND JUST AS A REMINDER, THE INCREASE IN ASSESSMENTS IS BASED ON THE ANNUAL CPI OF 2.2% AND THAT'S THE EXTENT OF THE INCREASE, THE INCREASES.

- THIS IS YOUR BUDGET.

- OH, THE BUDGET? OH, WE'RE DOING THE BUDGET FIRST.

I APOLOGIZE.

WELL, CHANGING GEARS.

ALL RIGHT.

THE ITEM BEFORE YOU IS THE PROPOSED BUDGET.

I THOUGHT WE WERE IN A DIFFERENT ORDER.

THE FINAL BUDGET WILL BE PART OF THE BUDGET CONSIDERATIONS AT THE JUNE COUNTY BOARD OF SUPERVISORS MEETING.

AND I'D LIKE TO GIVE YOU A LITTLE BRIEF HISTORY ON THIS ITEM.

ON DECEMBER 6TH, 2022, THE BOARD APPROVED A COST-SHARING AGREEMENT WITH PRFMA , WHEREIN PRFMA WOULD ASSUME RESPONSIBILITY FOR THE MAINTENANCE AND INFRASTRUCTURE IMPROVEMENTS WITHIN THE DISTRICT.

THIS AGREEMENT CALLED FOR THE TRANSFER OF ANY FUND BALANCE RETAINED BY THE DISTRICT AT THAT TIME, AS WELL AS 96% OF ONGOING DISTRICT ASSESSMENT REVENUES.

AND ON OCTOBER 29TH, 2024, THE BOARD APPROVED A MAINTENANCE AGREEMENT BETWEEN THE DISTRICT AND PRFMA FOR DISTRICT DRAINAGE OPERATIONS TO PROVIDE MAINTENANCE SERVICES TO PRFMA FOR THE COUNTY SIDE OF THE PAJARO RIVER FLOOD CONTROL SYSTEM.

THIS PROPOSED IN...

THIS PROPOSED BUDGET INCLUDES ANTICIPATED REVENUE AND EXPENSES ASSOCIATED WITH THE APPROVED MAINTENANCE AGREEMENT AND THE TRANSFER OF FUNDS TO PRFMA PER THE COST-SHARING AGREEMENT.

THE BUDGET FOR ZONE 7 IS PROJECTED, PROJECTING A TOTAL REVENUE AND EXPENSES ESTIMATED AT $3,158,602 FOR THE 2026-27 FISCAL YEAR.

PER THE DISTRICT'S AGREEMENT WITH PRFMA, THE BUDGET INCLUDES A TRANSFER OF 96%

[02:50:02]

OF THE '26-'27 PROJECTED ASSESSMENT REVENUES TO PRFMA.

AND THAT NUMBER IS ESTIMATED AS $2,000,474.

SORRY, $2,474,819.

AND WITH THAT, THE RECOMMENDED ACTION THIS MORNING IS TO APPROVE THE FISCAL YEAR 2026-27 PROPOSED BUDGET FOR ZONE 7 FLOOD CONTROL AND WATER CONSERVATION DISTRICT.

AND THAT CONCLUDES MY PRESENTATION, UNLESS THERE'S ANY QUESTIONS OR COMMENTS FROM THE BOARD.

DO WE HAVE ANY SPEAKERS TO THIS ITEM? EITHER HERE IN THE ROOM OR ONLINE? - YES, CHAIR, WE DO.

[PAUSE] CALL IN USER 915, YOUR MICROPHONE'S NOW AVAILABLE.

- HELLO, CAN YOU HEAR ME? - YES, WE CAN.

- THANK YOU, THIS IS BECKY STEINBRENNER.

I AM CURIOUS WHY 96% OF THE FLOOD CONTROL DISTRICT IS BEING TRANSFERRED TO PRFMA.

I UNDERSTAND THE RELATIONSHIP THERE, BUT AT WHAT POINT ARE THERE AUDITS OF THE ACTUAL EXPENDITURES AND THE EFFECTIVENESS OF THE EXPENDITURES, NOT ONLY FOR PRFMA, BUT ALSO FOR THE FLOOD CONTROL PUBLIC WORKS? THIS IS AN IMPORTANT ISSUE BECAUSE IN THIS AREA OF THE COUNTY, FLOODING ESPECIALLY IS A PROBLEM, AND WE'VE GOT TO PAY CLOSE ATTENTION TO HOW WE SPEND THIS MONEY FOR MAXIMUM EFFECTIVENESS.

I WANT TO KNOW, IS PRFMA GOING TO BE MAINTAINING ALSO THE PUMPS IN THE CREEKS THAT DID NOT FUNCTION DURING THE '23 PAJARO FLOODS? I JUST AM VERY...

THIS IS A LOT OF MONEY, AND I WANT TO MAKE SURE THAT IT'S BEING USED TO THE MOST EFFECTIVE...

WORK THAT WILL REALLY PREVENT FLOODING IN THE FUTURE.

I'D LIKE AN AUDIT IF POSSIBLE, THANK YOU.

I'M LOOKING FOR A MOTION TO APPROVE.

- SO MOVED.

- SECOND, AND I JUST WANT TO SAY THAT THERE IS...

THAT MONEY IS PROPOSED FOR CLEANUP OF THE CREEKS, JUST REFERRING TO THE SPEAKER ONLINE.

AND THE AREA THAT ACTUALLY DID FLOOD, THAT INTERLAKEN AREA IS A PROJECT WHERE THEY'RE BEGINNING PHASE ONE ALREADY.

THEY'RE ON THE INTERSECTION, OR BEHIND THE INTERSECTION OF 152 AND HOLOHAN.

SO THAT WORK IS BEGINNING.

THEY'RE DOING THE FLOOD WALL ALONG THAT CORRALITOS CREEK.

AND I MEAN, THAT'S THE PURPOSE OF THE MONEY IS TO CLEAN UP THAT AREA, DEBRIS AND STUFF.

SO I'LL GLADLY SECOND THE MOTION.

MADAM CLERK, PLEASE CALL THE ROLL.

- DIRECTOR HERNANDEZ? - AYE.

- MARTINEZ? - AYE.

THANK YOU, MOTION PASSES.

- AND DE SERPA? - AYE.

ITEM SEVEN, A PUBLIC HEARING ON ZONE 7 ASSESSMENT RATES FOR FISCAL YEAR '26-'27.

THIS IS A PUBLIC HEARING ON THE SANTA CRUZ COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ZONE 7 ASSESSMENT RATE FOR THE FISCAL YEAR '26-'27.

- I'LL NOW OPEN THE PUBLIC HEARING AND HEAR FROM STAFF.

- THANK YOU, CHAIR AND DIRECTORS.

I'D JUST LIKE TO SHARE THAT ON MARCH 24TH, 2026, THE BOARD APPROVED A RESOLUTION CONFIRMING THE INCREASE IN ASSESSMENTS.

AND JUST AS A REMINDER, THE INCREASE IN ASSESSMENTS IS BASED ON THE ANNUAL CPI OF 2.2%, AND THAT IS THE EXTENT OF THE INCREASES.

ON MARCH 24TH, THE BOARD SET TODAY AS A PUBLIC HEARING TO HEAR ANY COMMENTS FROM THE PUBLIC, IF ANY ON THE ASSESSMENT RATE REPORT FOR ZONE 7.

WITH THAT, THE RECOMMENDED ACTIONS THIS MORNING ARE TO, ONE, OPEN THE PUBLIC HEARING AND HEAR OBJECTIONS AND PROTESTS, IF ANY, TO THE PROPOSED FISCAL YEAR 2026-27 ASSESSMENT RATE REPORT FOR ZONE 7.

TWO, CLOSE THE PUBLIC HEARING.

[02:55:02]

AND THREE, UPON CONCLUSION OF THE HEARING, CONSIDER ADOPTION OF THE ATTACHED RESOLUTION CONFIRMING THE WRITTEN REPORT ON ASSESSMENT RATES FOR FISCAL YEAR 2026-2027.

AND THAT CONCLUDES MY PRESENTATION, UNLESS THE BOARD HAS QUESTIONS OR COMMENTS.

- ARE THERE ANY QUESTIONS FROM BOARD MEMBERS? NO.

ANY QUESTIONS FROM ANYBODY IN THE ROOM OR ONLINE? - YES, WE HAVE A SPEAKER ONLINE, CHAIR.

- GREAT.

[PAUSE] - CALL IN USER 915.

[PAUSE] - HELLO, CAN YOU HEAR ME? - YES, WE CAN.

THIS IS BECKY STEINBRENNER.

IN LOOKING AT THE RATES, I'M NOT OPPOSED TO THIS ASSESSMENT DISTRICT, BUT I THINK THAT THERE NEEDS TO BE A PERFORMANCE AUDIT AND ALSO A NEXUS STUDY TO MAKE SURE THAT THE RATES THAT ARE BEING CHARGED ARE FAIR AND ADEQUATE.

SO I REALIZE THAT TODAY'S ACTION IS JUST TO APPROVE A CPI INCREASE, BUT I THINK THIS BOARD NEEDS TO REALLY EXAMINE THE RATES, THE FAIRNESS, AND TO REQUEST A NEXUS STUDY BE DONE TO DETERMINE WHETHER OR NOT THESE RATES ARE EQUITABLE AND EFFECTIVE.

HEARING ANY OTHER SPEAKERS? NO.

- NO FURTHER SPEAKERS, CHAIR.

- NO FURTHER SPEAKERS, I'LL...

- CHAIR, WE HAVE ONE SPEAKER HERE.

- OH, I'M SO SORRY.

PLEASE, YES. - NO WORRIES.

- MOISHA, YOU CAN'T ASSESS YOUR WAY OUT OF A PROBLEM.

YOU NEED TO PLAN FOR CAPACITY.

SEEING NO FURTHER SPEAKERS, I'LL CLOSE THE PUBLIC HEARING AND BRING THIS BACK TO THE BOARD.

SO MOVED. - ...FOR ZONE 7.

- THE FIRST AND THE SECOND.

MADAM CLERK.

- DIRECTOR HERNANDEZ? - AYE.

- MARTINEZ? - AYE.

- AND DE SERPA? - AYE.

THAT COMPLETES TODAY'S AGENDA FOR ZONE 7 BOARD.

THE MOTION PASSES.

I'LL ADJOURN THIS ZONE 7 MEETING AND TURN IT BACK OVER TO THE CHAIR OF THE BOARD OF SUPERVISORS TO RESUME THE REGULAR BOARD MEETING.

THANK YOU, EVERYONE.

WE'LL NOW RETURN TO THE REGULAR AGENDA AND WE'LL BE HEARING ITEM NUMBER EIGHT.

THIS WILL BE THE LAST ITEM THAT WE HEAR BEFORE WE RECESS FOR LUNCH, AND THEN WE WILL RETURN.

FOR ITEM NINE.

SO ITEM NUMBER EIGHT IS TO CONSIDER AN UPDATE

[8. Consider update on veteran services and governance, including a Memorandum of Understanding between the County Executive Office, Human Services Department, Veterans Services Office, and Veterans Leadership, and take related actions]

ON VETERAN SERVICES AND GOVERNANCE, INCLUDING A MEMORANDUM OF UNDERSTANDING BETWEEN THE COUNTY EXECUTIVE OFFICE, HUMAN SERVICES DEPARTMENT, VETERAN SERVICES OFFICE, AND VETERANS LEADERSHIP AND TAKE RELATED ACTIONS.

- MORNING BOARD, IT'S SVEN STAFFORD.

DEPUTY COUNTY EXECUTIVE OFFICER.

I'M PLEASED TO BE JOINED TODAY BY DAVE RAMOS, MANAGING DIRECTOR OF THE VETERANS MEMORIAL BUILDING, DEAN KAUFMAN, OUR FORMER VETERAN SERVICES OFFICER, AND ALICIA MORALES, HUMAN SERVICES, ADULT AND LONG-TERM CARE DIVISION DIRECTOR.

I'D ALSO LIKE TO THANK ALL THE VETERANS FOR COMING OUT TODAY AND STICKING AROUND.

I THINK MOST OF YOU PROBABLY DIDN'T THINK YOU WOULD GO THROUGH BUDGET BASIC TRAINING, BUT I APPRECIATE YOU ALL SPENDING THE TIME AND WAITING UNTIL NOON TO GET THIS ITEM ON.

SO FOR THE PURPOSE AND FLOW TODAY, WE'RE GONNA JUST GO OVER BRIEFLY THE JANUARY BOARD DIRECTION.

OUR STAFF WORKED WITH THE VETS TO OVER THE PAST THREE MONTHS TO REALLY DO SOME FACT FINDING AND GET TO THE RECOMMENDATIONS THAT WE'RE BRINGING YOU TODAY.

AND I'M REALLY PLEASED THAT WE'RE ABLE TO DO THAT JOINTLY WITH EACH OTHER SITTING AT THE SAME TABLE.

OVER THE PAST THREE MONTHS, WE HAVE REALLY GONE THROUGH A PROCESS OF TRYING TO REBUILD TRUST WITH THE VETERANS COMMUNITY.

I'VE BEEN ABLE TO WORK WITH THESE TWO AND MANY OF THE FOLKS OUT IN THE AUDIENCE TO CREATE NEW RELATIONSHIPS AND GO SEE THE WORK THAT THEY DO, INCLUDING ON, YOU KNOW, THE WEDNESDAYS WHEN THEY PROVIDE SERVICES AND MEALS AND ALL SORTS OF OTHER REALLY IMPORTANT RESOURCES TO OUR VETERAN COMMUNITY.

AND I'VE JUST BEEN REALLY IMPRESSED BY ALL THE WORK THAT THEY DO,

[03:00:03]

THE SENSE OF COMMUNITY THAT THEY CREATE AND THE VALUE THAT THAT ADDS TO THE OVERALL SANTA CRUZ COUNTY COMMUNITY.

OVER THAT TIME, WE'VE ALSO DONE SOME COMPARATIVE ANALYSIS LOOKING AND SPEAKING WITH OTHER COUNTIES AND HOW THEY DO THEIR VETERAN SERVICES OPERATIONS.

AND WE'VE DONE A LOOK AT OURSELVES ON THE OPERATIONAL AND FISCAL SIDE AND LOOKED AT DIFFERENT OPTIONS OF HOW WE MIGHT WORK GOING FORWARD.

[PAUSE] ONE OF THE THINGS THAT WE WANT TO HIGHLIGHT IS THAT THE VETERANS SERVICES OFFICE CONTINUES TO PROVIDE REALLY EXCELLENT SERVICES IN CONNECTING OUR VETERANS TO THE ENTITLEMENTS THAT THEY'VE EARNED.

AND THAT CONTINUES.

WE HAVE RELATIVELY GOOD PER CAPITA SPENDING ON OUR VETERANS SERVICES OFFICE THAT IS FULLY MAINTAINED IN THE BUDGET, WHICH I THINK IS REALLY AN IMPORTANT COMMITMENT OF THE COUNTY TO KEEP FUNDING AND SUPPORTING THIS CRITICAL LINE OF SERVICES.

IN ADDITION, IN RETURN FOR THOSE...

IN RETURN FOR THAT EXPENDITURE, THE OFFICE CONTINUES TO BRING IN NEW FUNDING AT A REALLY GOOD RATE.

AND SO THOSE ARE, YOU KNOW, CONNECTING VETERANS TO SERVICES AND SUPPORTS THAT THEY'RE, AGAIN, ENTITLED TO.

AND THAT DOES REDUCE THE AMOUNT OF SUPPORT THAT THEY MAY BE GETTING THROUGH OTHER STATE AND FEDERAL PROGRAMS. THE VETERANS SERVICE OFFICE IN ALL COUNTIES ARE STAFF OF THE COUNTIES IN WHICH THEY SERVE.

AND SO ALL OF THOSE OFFICES AND STAFF ARE CONNECTED TO COUNTY POLICIES AND PROCEDURES, AS WELL AS TO THE VETERANS AFFAIRS POLICIES THAT THEY HAVE TO UPHOLD.

[PAUSE] THERE'S ADDITIONAL ADMINISTRATIVE SUPPORT THAT WE PROVIDE THROUGH OUR HUMAN SERVICES DEPARTMENT, INCLUDING HUMAN RESOURCES, CONTRACTS, FISCAL, IT SERVICES, ANALYTICS, AND...

AND SOME ADDITIONAL SUPPORTS.

WE DO BELIEVE THAT ABOUT 31% OF OUR VETERAN POPULATION ARE ENGAGED IN SOME FORM OF HUMAN SERVICES BENEFITS AS WELL.

AND PART OF THE REASON THAT WE DO LOCATE THE VETERANS SERVICES OFFICE IN PARTNERSHIP WITH OUR ADULT AND LONG-TERM CARE DIVISION IS THAT THE VETERAN COMMUNITY, SIMILAR TO OUR OVERALL SANTA CRUZ COUNTY COMMUNITY, IS AGING AND COMPRISED MORE OF OLDER ADULTS AT THIS POINT IN TIME.

SOME OF THE GOVERNANCE OPTIONS THAT WE REVIEWED INCLUDED THESE FOUR, LOOKING AT A STATUS QUO, WHICH WE FELT LIKE WASN'T NECESSARILY WORKING FOR US, AND THEN LOOKING AT AN OPTION THAT INCLUDED A NEW MEMORANDUM OF UNDERSTANDING, WHICH WE'LL HAVE DIRECTOR MORALES GO OVER A LITTLE BIT LATER.

THE MOU, WE'RE HOPING, PROVIDES CLEAR ROLES AND RESPONSIBILITIES.

WE HOPE TO CONTINUE TO BE WORKING WITH THE VETS IN PARTNERSHIP ON PROVIDING CLARITY ON ADMINISTRATIVE COSTS AND THE CONNECTION TO SERVICES THAT WE BELIEVE IS IMPORTANT.

AND HAVING AN MOU WILL ALSO GIVE US SOME TIME TO WORK WITH OUR CURRENT VETERANS SERVICES OFFICER TO ESTABLISH THEM AND THEIR LEADERSHIP IN HELPING TO SERVE AND STEER THE OFFICE.

SO WITH THAT BRIEF OVERVIEW, I'M GONNA TURN IT OVER TO DAVE AND DEAN FOR A FEW WORDS ON CHARACTERIZING WHAT WE'VE BEEN THROUGH THE PAST COUPLE MONTHS.

- THANK YOU, SVEN, AND THANK YOU, BOARD, FOR THE OPPORTUNITY.

AT THIS TIME, THOUGH, I WOULD LIKE TO RECOGNIZE THE VETERANS, THE COMMUNITY FAMILY MEMBERS, DEPENDENTS WHO HAVE BEEN HERE AND STOOD BY THROUGH THE DURATION OF THIS, AND...

ALSO TAKE A TIME TO RECOGNIZE THE CORE VETERAN LEADERSHIP TEAM THAT HAS HELPED US DEVELOP THIS ON OUR END.

IF YOU'D LIKE TO STAND UP, THAT WOULD BE VERY NICE.

SO AT THIS TIME, SPECIFICALLY, I...

SPECIFICALLY, I...

I'D LIKE TO RECOGNIZE MICHELLE SHIPPEN, WHO IS A RETIRED LONG-TERM HSD EMPLOYEE.

SHE HAS SPENT A LOT OF TIME

[03:05:02]

IN VARIOUS ADMIN ROLES TO INCLUDE THE ASSISTANT DIVISION DIRECTOR FOR THE ADULT AND FAMILY AND CHILD SERVICES, AND ALSO A PART OF THE VETERAN COUNCIL.

DEAN KAUFMAN HERE IS THE FORMER VETERANS SERVICE OFFICER.

HE'S ALSO A FOUNDING MEMBER OF VETS FOR VETS SANTA CRUZ, AND A MEMBER OF VETERANS OF FOREIGNS WAR 7263.

HUTCH COLLIER IS THE VICE PRESIDENT OF THE UNITED VETERANS COUNCIL.

HE'S A QUARTERMASTER FOR VETERANS OF FOREIGNS WAR 10110.

HE'S ALSO A BOARD MEMBER FOR THE SANTA CRUZ COUNTY VETERANS MEMORIAL BUILDING.

JOHN RAMIREZ IS A MARINE CORPS LEAGUE VETERAN.

HE IS A MEMBER OF VETERANS OF FOREIGN WAR 10110.

HE'S ALSO A MEMBER OF THE AMERICAN LEGION POST 64, AND THE MILITARY ORDER OF PURPLE HEARTS.

CHUCK WOODSON IS THE UNITED VETERANS COUNCIL PRESIDENT.

HE IS THE COMMANDER FOR VETERANS OF FOREIGNS WAR POST 10110.

HE'S A PART OF THE SANTA CRUZ COUNTY VETERANS MEMORIAL BUILDING BOARD OF TRUSTEES AS THE VICE PRESIDENT, AND HE'S A MEMBER, MENTOR AT THE CABRILLO VETERANS INFORMATION CENTER.

XAVIER BIANCHI IS A FORMER VETERANS SERVICE OFFICER HERE IN THE COUNTY OF SANTA CRUZ.

HE IS ONE OF THE FOUNDING MEMBERS OF THE VETERANS SERF ALLIANCE, AND HE'S ALSO A BOARD MEMBER OF THE SANTA CRUZ COUNTY VETERANS MEMORIAL BUILDING.

CALVIN ANGEL IS THE LOCAL INTERAGENCY NETWORK COORDINATOR FOR CALVET.

AND ANDRE SAMAYOA IS THE CURRENT VETERANS SERVICE OFFICER, ALSO A MEMBER OF THE VETERANS OF FOREIGN WAR 7263.

I MYSELF AM THE MANAGING DIRECTOR OF THE SANTA CRUZ COUNTY VETERANS MEMORIAL BUILDING, AS WELL AS A BOARD MEMBER FOR VETS FOR VETS SANTA CRUZ, A MEMBER OF THE UNITED VETERANS COUNCIL, AND THE FOUNDING MEMBER AND HOST OF THE VETERANS TAKE CHARGE RADIO SHOW.

THIS... THANK YOU.

THIS REPORT WAS CREATED TO BETTER UNDERSTAND COMPARABLE COUNTY'S ALTERNATIVE STRUCTURAL CONCEPTS THAT SUPPORT THEIR RESPECTIVE VSOS, AND BY PROXY, THEIR ENTIRE VETERAN COMMUNITY.

THE INTENTION WITH OUR COLLABORATION ON THIS GOVERNANCE IS TO BEGIN THE PROCESS OF SHOWING THE BEST CIRCUMSTANCE FOR OUR COUNTY VETERANS SERVICE OFFICER, OUR OFFICE.

IT'S HELPED US TO EXPAND OUR UNDERSTANDING AND OUTLOOK FOR IMPROVEMENTS ON THE SERVICE AND OUTREACH PROVIDED TO THE VETERAN COMMUNITY.

NOW, THERE ARE TWO DATA POINTS THAT WE'RE IN NEED OF FURTHER CLARIFICATION AND DETAILED EXPLANATION OF, AND THOSE ARE THE NUMBER OF VETERANS WHO UTILIZE RESOURCES FROM THE HUMAN SERVICES DEPARTMENT, AS OPPOSED TO THE VETERANS ADMINISTRATION, AND THE DETAILED AMOUNTS OF IN-KIND SERVICES THAT THE VETERANS SERVICE OFFICE USES.

NOW, WITH THESE DATA POINTS, THE EVOLUTION OF THIS MEMORANDUM OF UNDERSTANDING WILL TAKE A MORE ACCURATE APPROACH TO THE FINANCIAL IMPACT OF REALIGNING THE VETERANS SERVICE OFFICE WITHIN THE COUNTY, IF THAT IS DEEMED APPROPRIATE.

AND AT THIS TIME, I'D LIKE TO PASS IT TO DIRECTOR MORALES, WHO CAN TOUCH MORE ON THE DETAILS OF THE MEMORANDUM OF UNDERSTANDING, AS YOU WERE.

- YEAH, IS IT OKAY IF I SAY A FEW WORDS? [CHUCKLES] - SORRY, DEAN.

SORRY, DEAN.

- WE DIDN'T PRACTICE THIS BEFORE WE GOT HERE, SO.

I DID WANT TO RECOGNIZE AND HONOR SOME OF OUR DEPENDENTS OF VETERANS IN THE ROOM AS WELL.

I SEE A NUMBER OF FOLKS HERE THAT AREN'T VETERANS THAT ARE HERE TO SUPPORT THIS INITIATIVE, AND I JUST WANT TO RECOGNIZE THEM AS WELL.

THE 31% NUMBER THAT SVEN DISCUSSED AS PART OF THE OVERLAPPING SERVICES THAT HSD PROVIDES TO VETERANS, WE REALLY NEED TO TAKE A GOOD HARD LOOK AT THAT.

IF YOU GUYS WERE ABLE TO READ YOUR GOVERNANCE REPORT THAT WE PROVIDED, THERE ARE A FEW THINGS THAT WE'RE A LITTLE BIT OFF ON THAT WE NEED TO REALLY FIND SOME TRUE DATA AND ANALYSIS IN ORDER TO MAKE A DECISION ON, MOVING FORWARD, WHAT THE STRUCTURE OF THE OFFICE IS AND HOW TO BEST SUPPORT THE TEAM THAT SITS IN THIS OFFICE AND SUPPORTS THE VETERANS OF OUR COMMUNITY.

SO THAT IS ONE OF THOSE.

PART OF THAT PERCENTAGE ALSO DOES INCLUDE, WHAT IS THE VALUE ADDED TO HAVE THE VSO REMAIN WITHIN HSD? IN IT THAT GOES IN BOTH DIRECTIONS.

WHAT DOES HSD PROVIDE TO THE VSO OFFICE IN WAY OF SUPPORT OF VETERANS? AND WHAT DOES THE VSO OFFICE PROVIDE IN SUPPORT IN THE WAY OF ALL OTHER VETERANS THAT ARE ACCESSING SERVICES WITHIN HSD? SO THERE'S SOME MORE WORK THAT NEEDS TO BE DONE THERE.

I'M VERY HAPPY TO REPORT AND HOPEFULLY OPTIMISTIC THAT THE TEAM THAT WE HAVE IN PLACE WITH SVEN AND ALICIA AND THE VETERANS LEADERSHIP COMMUNITY WORKING TOGETHER TO FIND A SOLUTION THAT BEST SERVES THE ENTIRE COMMUNITY.

I THINK, SVEN, IF YOU CAN GO BACK ONE SLIDE ON THE GOVERNANCE OPTIONS REVIEW, ITEM D OR NUMBER D THERE, WE'VE LOOKED AT THIS AND THROUGH THE REPORTING AND COST ANALYSIS THAT WAS PROVIDED BY THE COUNTY, THAT OPTION WOULD BE $25,000 AT MOST.

AND WE BELIEVE THAT THROUGH FURTHER INVESTIGATING THE OVERALL COSTS, THAT'LL PROBABLY COME DOWN TO NOTHING.

SO I THINK THAT, AGAIN, WE CAN FIND A WAY TO SUPPORT THE OFFICE, THE VETERANS AND THE COMMUNITY AND HAVE NO COST TO THE COUNTY AND FIND A SOLUTION

[03:10:01]

THAT REALLY WORKS BEST FOR EVERYONE.

SO AGAIN, I'M JUST HOPEFUL AND OPTIMISTIC ON OUR CONTINUED WORK IN THIS MEASURE AND ENDEAVOR AND REALLY LOOK FORWARD TO FINDING A SOLUTION AND RESOLUTION TO THIS MATTER AS SOON AS POSSIBLE AS I'M SURE ALL ARE.

SO THANK YOU.

ALICIA? - SHE'S GOT ONE.

- YOU GOT ONE? - OH, THANK YOU.

- LET ME SIT, LET ME SIT HERE.

- OKAY, NO, ACTUALLY IT'S ALL GOOD, IT'S FINE.

JUST STATE IT.

GOOD AFTERNOON.

AND I ALSO WANT TO THANK THE VETERAN COMMUNITY AND OUR VSO STAFF, AS WELL AS THE CEO FOR COMING TOGETHER AS WE TRY TO WORK THROUGH SOME OF THESE ISSUES.

I OVERSAW THE VETERAN SERVICE OFFICE IN ALAMEDA COUNTY FOR FIVE YEARS, AND I HAVE HAD OVERSIGHT OF OUR LOCAL VSO SINCE 2020.

WHILE I AM NOT A VETERAN, I HAVE MANY FAMILY MEMBERS WHO HAVE SERVED AND CONTINUE TO SERVE.

I BELIEVE THAT VETERANS AND THEIR FAMILY MEMBERS ARE ENTITLED TO THE UTMOST RESPECT AND DIGNITY.

AND TO HONOR OUR VETERANS AND THE WORK OF THE VSO TEAM, WE HAVE MUTUALLY AGREED TO AN MOU THAT WILL FORMALIZE ROLES AND RESPONSIBILITIES AND PROVIDE CLARITY AND A SHARED UNDERSTANDING OF EXPECTATIONS.

IT RECOGNIZES THAT THE PROGRAM AUTHORITY REMAINS WITHIN THE VSO WHILE ENSURING COMPLIANCE WITH FEDERAL, STATE, AND COUNTY REQUIREMENTS.

AND THE MOU ALSO PRESERVES THE IN-KIND ADMINISTRATIVE SUPPORT THAT IS CURRENTLY IN PLACE.

AND IT ALSO CREATES A STRUCTURE AND RECURRING SPACE FOR ISSUES TO BE ADDRESSED PROACTIVELY.

THROUGH THIS MOU, WE ARE HOPEFUL THAT WE CAN MOVE FORWARD IN A THOUGHTFUL AND MEANINGFUL WAY TO ENSURE THAT VETERANS AND THEIR FAMILIES ARE SERVED IN THE BEST WAY POSSIBLE.

THANK YOU ALL.

- ALL RIGHT, THANK YOU, ALICIA.

THANK YOU, DAVE AND DEAN.

WITH THAT, I DO WANT TO JUST THANK, YOU KNOW, ALL THE FOLKS AT THE TABLE AND IN THE AUDIENCE.

WE'VE BEEN... WE REALLY HAVE BEEN WORKING TOGETHER FOR THE LAST THREE MONTHS TO GET TO THE PLACE WHERE WE CAN PRESENT TOGETHER TODAY.

AND I DO BELIEVE THAT ALL OF US ARE REALLY FOCUSED ON OUTCOMES THAT ARE BEST FOR VETS AND BEST FOR THE PEOPLE THAT WE'RE SERVING IN OUR COMMUNITY.

AND WITH THAT, WE'LL TAKE ANY QUESTIONS THAT YOU ALL HAVE.

- THANK YOU FOR THE PRESENTATION.

I'LL NOW RETURN TO THE BOARD FOR QUESTIONS.

ANY QUESTIONS FROM MY COLLEAGUES? SUPERVISOR HERNANDEZ.

- SO FIRST OF ALL, THANK YOU TO ALL THE VETERANS THAT ARE HERE AND THANK YOU, SVEN, WORKING THROUGH THIS.

AND I WANT TO THANK THE VETERANS THAT WORKED ON THIS WITH SVEN AS WELL TO WORKING TO MAKE OUR VSO OFFICE A BETTER PLACE.

YOU KNOW, I ALWAYS THINK THAT IF I DON'T GET THE PHONE CALLS THEN I ASSUME THINGS ARE GOING GOOD.

AND I DID GET A PHONE CALL THAT JUST TO CHECK IN ON JUST BEFORE THE MEETING TO CHECK IN ON THINGS.

AND SO I'M GLAD THAT, YOU KNOW, THINGS ARE GOING SMOOTHLY SO FAR AND WHICHEVER DIRECTION, I WOULD LIKE TO KNOW LIKE, WHAT HAS BEEN THE DISCUSSION AMONGST THE VETERANS ON WHICH OPTIONS FOR THE GOVERNANCE OPTIONS OVERVIEW THEY WOULD LIKE TO SEE.

I KNOW THERE'S OPTIONS A THROUGH D, WHAT HAS BEEN, WHICH ONES HAVE KIND OF RISEN TO THE TOP AMONGST THOSE OPTIONS? [RUSTLES] - YES, SO WE WORKED VERY CLOSELY WITH SVEN.

AGAIN, THERE'S A NUMBER OF US IN THE LEADERSHIP SIDE, FOUR OF US THAT HAD REGULAR MEETINGS, HUTCH, MYSELF, DAVE, AND ANDRE, BUT WE HAD A LOT OF INFLUENCE AND DISCUSSION WITHIN A GREATER VETERAN COMMUNITY.

FOR NOW, OPTION B IS THE WAY FORWARD TO START.

SO WE'RE LOOKING AT AN MOU THAT WAS INCLUDED WITH THE GOVERNANCE REPORT THAT WE SUBMITTED TO THE BOARD OR WHERE SVEN SUBMITTED TO REPORT ON BEHALF OF OUR GROUP.

SO I HOPE YOU HAD A CHANCE TO REVIEW THAT MOU BECAUSE I THINK IT'S A CRITICAL FIRST STEP IN REBUILDING THE TRUST AND FINDING A WAY FORWARD THAT MAKES MORE SENSE.

THE NEXT STEP FROM HERE AFTER THIS MOU AND A LOOK AT THIS GOVERNANCE OPTIONS FROM OUR SIDE IS A WAY TO REALLY HONOR AND RESPECT OUR VETERANS IN THIS COMMUNITY AND FIND A WAY TO HAVE THAT OFFICE SUPPORTED IN A WAY LIKE I HAD PREVIOUSLY, RIGHT? WHERE THERE'S NOT ANYONE REALLY LOOKING UNDER THE HOOD PER SE.

OBVIOUSLY THE VSO NEEDS TO FOLLOW ALL THE STATE,

[03:15:03]

FEDERAL, AND COUNTY GUIDELINES, BUT THAT OFFICE TRULY KNOWS HOW TO SUPPORT VETERANS.

AND ANYTIME ANYONE COMES IN AND REALLY MESSES WITH THE PROCESS, IT CAN TAKE AWAY FROM THE SERVICE TO VETERANS.

I KNOW KIM AND MONICA AND OTHER BOARD MEMBERS HAVE COMMENTED ON THE REPORT BACK AROUND THE STATE.

AND EVEN VETERANS THAT I'VE SERVED LONG-TERM HAVE REPORTED BACK TO ME WHEN THEY LEAVE THE AREA ABOUT WHAT THE QUALITY OF SERVICE HERE IS IN SANTA CRUZ AND HOW VITAL IT IS TO KEEP THAT INTACT.

SO A NEW STRUCTURAL OPTION WHERE IT DOESN'T HAVE ANY COSTS WITH THE COUNTY AND FINDING A WAY, PERHAPS IT STAYS WITHIN HSD.

THERE'S JUST A LOT OF THINGS ON THE TABLE THAT WE NEED TO KIND OF WORK OUR WAY THROUGH.

PART OF IT IS UNDERSTANDING THAT, AGAIN, THAT RELATIONSHIP WITH HSD AND PERHAPS LEAVING THE OFFICE WITHIN THAT, BUT CHANGING THE STRUCTURE TO SOME LEVEL AND OR OTHER OPTIONS THAT WE HAVEN'T IDENTIFIED YET.

SO THERE'S MORE WORK THAT NEEDS TO BE DONE.

AND LIKE I SAID, I'M JUST VERY OPTIMISTIC AND HOPEFUL MOVING FORWARD.

AND SVEN HAS SHOWN THAT THE COUNTY IS THE CE'S OFFICE.

AND THANK YOU, NICOLE COBURN AS WELL, FOR REALLY TAKING A GOOD, HARD, HONEST LOOK AT THIS AND ALLOWING OUR VOICE TO BE HEARD.

SO I THINK WE'RE ON A PATH FORWARD THAT MAKES A LOT OF SENSE.

AND I THINK THAT, YEAH, WE'RE DOING THINGS IN A VERY POSITIVE WAY.

- THANK YOU FOR THAT.

YOU KNOW, WHEN YOU TALKED ABOUT THE STATE, THE STATEWIDE SORT OF RANKINGS, YOU KNOW, AND I'VE BEEN TOLD FROM FOLKS FROM CALVET THAT OUR VSO OFFICE, YOU KNOW, DESPITE LIKE THE ISSUES THAT WERE LINGERING IN THERE, HAS ALWAYS MAINTAINED A TOP THREE IN THE STATE FOR PERFORMANCE.

SO I'M HOPING THAT YOU GUYS, YOU KNOW, RESOLVE THE ISSUES AND GO WITH THE...

WAS IT B, YOU SAID, AND HOPEFULLY WE COULD BECOME THE NUMBER ONE VSO IN THE STATE.

[PAUSE] - FURTHER QUESTIONS? SUPERVISOR DE SERPA.

- MORE, REALLY MORE COMMENTS.

FIRST OF ALL, THANK YOU VERY, VERY MUCH, ALL OF YOU FOR GETTING TOGETHER AND MEETING THIS CHALLENGE HEAD ON.

THIS WAS A VERY SIGNIFICANT ISSUE.

SO MANY PEOPLE CARE ABOUT THIS.

SO MANY PEOPLE SHOWED UP TO SAY, "WAIT A MINUTE, WE COULD DO BETTER." AND I WANT TO THANK ALL OF THE VOLUNTEER HOURS THAT HAVE GONE INTO THIS.

THANK YOU, DEAN.

THANK YOU, DAVE.

AND TO EVERYBODY WHO HAS CONTRIBUTED, WE REALLY APPRECIATE IT.

I FEEL SATISFIED WITH THE WORK THAT'S TAKEN PLACE THAT YOU WILL BE MEETING QUARTERLY.

IS THAT RIGHT? TO IDENTIFY ANY ISSUES IF THEY TEND TO BUBBLE UP AND HOPEFULLY WE CAN SORT OF GET A HANDLE AND MAKE OUR EMPLOYEES SATISFACTION AND OUR PUBLIC'S SATISFACTION TIP TOP, SHIP SHAPE.

SEEING NO FURTHER QUESTIONS FROM THE BOARD, I'LL OPEN IT UP TO THE PUBLIC FOR COMMENT ON THIS ITEM.

IF YOU'D LIKE TO SPEAK ON THIS ITEM, PLEASE FORM A LINE [PAUSE] AND I'LL SET THE PUBLIC COMMENT PERIOD FOR TWO MINUTES EACH.

- HELLO, MY NAME IS CURTIS CARLSON.

I'M A DISABLED NAVY VETERAN WITH 10 YEARS OF SERVICE.

AND I HAVE WORKED...

AS A WORK STUDY STUDENT FOR THREE YEARS.

DEAN CONVINCED ME TO WORK FOR THE VSO BY NOVEMBER, 2023.

AND I OFFICIALLY STARTED MY WORK STUDY POSITION IN JANUARY, 2024.

WORKING FOR DEAN WAS A VERY SMOOTH EXPERIENCE AND THE OFFICE RAN WELL.

UPON DEAN'S RETIREMENT, I STARTED WORKING FOR XAVIER AND WE CLICKED INSTANTLY.

HE ENCOURAGED ME TO GET MORE INVOLVED IN THE VETERAN COMMUNITY.

AND BECAUSE OF THIS ENCOURAGEMENT, I JOINED THE VETERAN SURF ALLIANCE.

HOWEVER, TWO MONTHS AFTER XAVIER WAS PROMOTED TO VSO, THE MOOD IN THE OFFICE CHANGED.

AT THIS POINT, THE TEAM HAD LOST TRAVIS, LORENA, COURTNEY AND DEAN.

THE OFFICE ENVIRONMENT STARTED GETTING STRESSFUL, WHICH BEGAN ACTIVATING MY PTSD.

AS A RESULT OF THIS, I HAD TO TERMINATE MY JANUARY, 2025 CONTRACT.

I WAS ONLY A HUNDRED HOURS INTO MY 421 HOUR CONTRACT, RESULTING IN A LOSS OF $5,136.

THE OFFICE WAS NO LONGER A SAFE SPACE FOR ME TO WORK.

AND I COULD NOT PHYSICALLY BRING MYSELF TO GO IN AFTER FEBRUARY 19TH, 2025.

AFTER FACING SIGNIFICANT FINANCIAL DIFFICULTY, I INQUIRED ABOUT WORKING FOR THE VSO AGAIN IN JULY, 2025, UPON HEARING THAT THE NEW VSO HAD BEEN HIRED.

I WAS TOLD THE PROGRAM HAD ENDED, WHICH WAS CONFUSING AND OFF-PUTTING TO ALL THE VETERANS AT CABRILLO COLLEGE.

THIS JANUARY, I STARTED BACK AT THE VSO AS A WORK-STUDY AGAIN, WORKING FOR ANDRE.

[03:20:02]

AND IT HAS BEEN A GOOD EXPERIENCE AND THE OFF-PIC DYNAMICS HAVE STARTED TO GET BACK TO NORMAL.

I JUST WANTED TO SHARE MY EXPERIENCE AS AN EMPLOYEE AT THE VSO.

[RUSTLES] - HELLO, MOISHA, US ARMY VETERAN, COMBAT VET.

I DON'T THINK THAT SOME PEOPLE CAN APPRECIATE THE NECESSITY OF A VSO AS THE FEDERAL GOVERNMENT HAS PROHIBITED THE ORGANIZATIONS SUCH AS DAV, VFW, OF HAVING THEIR OWN VSO OFFICERS TO SERVE VETERANS.

THIS IS PARTLY A BUDGETARY ISSUE WITH YOU GUYS IN CONTROL, BUT THE FACT OF THE MATTER IS HEALTH AND HUMAN SERVICES HAVE DIFFICULTIES DEALING WITH THE CASELOADS THAT THEY HAVE.

A DEDICATED VSO WHO UNDERSTANDS THE FEDERAL REGULATIONS THAT GOVERN BENEFITS FOR VETERANS AND HOW TO NAVIGATE THE SYSTEM IS A NECESSITY, NOT AN OPTIONAL THING.

BEING HERE FOR THE BUDGETARY MEETING, PUBLIC SAFETY BEING THE LARGEST OUT OF ALL OF THE CATEGORIES IS A LITTLE BIT DISTURBING.

ONE SALARIED OFFICER WOULD PAY FOR A VSO IF IT WAS A BUDGETARY ISSUE.

I THINK THAT IT'S MORE STRUCTURAL, BUT AUTONOMY FOR VSOS IS IMPERATIVE.

AND AT THE RISK OF BEING A LITTLE BIT CRASS, DEALING WITH VETERANS, IT TAKES A SPECIAL INDIVIDUAL BECAUSE VETERANS HAVE ZERO TOLERANCE FOR BULLSHIT.

[PAUSE] - MY NAME IS ROBERT SHIPPEN.

I SERVED IN VIETNAM AS AN ARMY SPECIAL FORCES MEDIC.

I CAME HOME WITH A PURPLE HEART, BRONZE STAR WITH A V FOR VALOR AND A HEAVY LOAD OF PTSD.

FOR MORE THAN 10 YEARS, I COUNSELED OTHER COMBAT VETS UNDER A CONTRACT WITH THE VETERANS ADMINISTRATION, HAD A CLOSE INTERFACE WITH THE COUNTY VETERANS SERVICES OFFICE.

A YEAR AGO, WHEN ALL THIS CAME TO A HEAD, THE TREATMENT OF THE FORMER VET SERVICE OFFICER, THE ISSUES REGARDING OVERBEARING OVERSIGHT BY THE HSD ADMINISTRATIVE HIERARCHY, THE DESIRE OF THE VETERANS COMMUNITY FOR THE VSO TO GET OUT FROM UNDER ALL THAT, TO RESTORE ITS AUTONOMY AS IT WAS FOR DECADES BEFORE BEING FOLDED INTO THE HUMAN SERVICES DEPARTMENT, THIS ROOM WAS PACKED WITH VETERANS ASKING YOU TO FIX THIS.

YOUR BOARD RESPONDED AND TOOK THE INITIATIVE TO DIRECT THE CEO TO WORK WITH VETS LEADERSHIP TO FIND A WAY.

SO HERE WE ARE, MORE THAN A YEAR LATER.

SOME GOOD WORK HAS BEEN DONE AND THE VETERANS LEADERSHIP CONTINUES TO MAKE A GOOD FAITH EFFORT TO COLLABORATE WITH THE COUNTY.

MY BIGGEST CONCERN IS THAT THIS WILL CONTINUE TO BE DRAWN OUT WHILE THE COUNTY DOES ITS DARNDEST TO KEEP THE VSO RIGHT WHERE IT IS, IN AN ORGANIZATIONAL STRUCTURE THAT SUBORDINATES THE OFFICE AND BY EXTENSION, THE VETERANS.

I HOPE THIS WON'T BE THE CASE AND THAT THE GREATER AUTONOMY ALTERNATIVES WILL STAY ON THE TABLE.

IN THE MILITARY, WE REFER TO THE GRUNTS.

MY DEFINITION OF A GRUNT IS SOMEONE WHO SLOGS THROUGH THE MUD AND THE BLOOD AND THE BULLETS AND THE BULLSHIT AND GETS THE JOB DONE.

THE VETS ARE STILL HERE TO SUPPORT THE COUNTY VETERANS SERVICE OFFICE.

THEY EXEMPLIFY THE SPIRIT OF THE GRUNT AND THEY ARE NOT GOING AWAY.

- MY NAME IS LORENA VASQUEZ AND I WAS A VETERAN SERVICES REPRESENTATIVE FOR THIS COUNTY FOR 24 YEARS.

I SERVED UNDER SEVEN VSOS.

THIS IS MY PERSONAL OPINION.

VETERANS, THE FAMILIES IN THIS COMMUNITY DESERVE AND SHOULD RIGHTLY DEMAND THAT THE VSO OF THIS COUNTY SHOULD BE THE MAIN PERSON MAKING DECISIONS THAT BENEFIT ALL THOSE THAT WALK INTO THE VETERAN SERVICES OFFICE.

THE VSO SHOULD NOT BE A PUPPET WHOSE STRINGS ARE BEING PULLED BY THOSE WHO DO NOT HAVE THE UNDERSTANDING, THE PASSION AND THE 100% COMMITMENT TO SERVING VETERANS TO THE BEST OF THEIR ABILITY.

VETERANS ARE VERY PROTECTED OF THEIR OWN AND ARE A SPECIAL GROUP OF MEN AND WOMEN WHO HAVE SERVED THIS COUNTRY, MANY IN COMBAT, AND THEY DESERVE TO BE ASSISTED IN AN OFFICE THAT IS THERE FOR THEM 100%.

[03:25:03]

YOU, THE BOARD OF SUPERVISORS HAVE WITNESSED THIS WHEN THEY CAME IN SUPPORT OF XAVIER BIANCHI, THE COMBAT VETERAN, TWICE PURPLE HEART VETERAN WHO WAS FIRED AS THE VSO, DESPITE HAVING THE FULL SUPPORT OF THE VETERAN SERVICE REPRESENTATIVES UNDER HIS OFFICE, UNDER HIS WATCH, AS WELL AS THE VSO, AS WELL AS THE VETERAN COMMUNITY AND DIFFERENT VETERANS ORGANIZATIONS, BECAUSE HE SUPPOSEDLY WAS NOT A GOOD FIT, A WELL-LIKED WOUNDED PURPLE HEART COMBAT VETERAN, NOT FIT TO UNDERSTAND THE NEEDS OF VETERANS.

HIS FIRING CLEARLY INDICATES THE LACK OF UNDERSTANDING OF THOSE ABOVE THE VSO AS TO THE DUTY, AS WELL AS THE HONOR IT IS TO SERVE VETERANS.

WE NEED THE BOARD OF SUPERVISORS TO MAKE SURE THAT THE CURRENT VSO IS THE ACTUAL VSO AND NOT JUST A FIGUREHEAD THAT IS BEING CAPRICIOUSLY MANIPULATED AND RESTRICTED BY DEPARTMENT HEADS, AND TO PLEASE SERIOUSLY CONSIDER MOVING THE VSO UNDER THE CEO IN ORDER TO CLEARLY SHOW THE DEDICATION OF THIS COUNTRY, THIS COUNTY HAS TWO VETERANS.

[APPLAUSE] - GOOD AFTERNOON, BOARD.

MY NAME IS STEVE CURTIN.

I'M A COMBAT VET, VIETNAM, 1968, 1969 HELICOPTER PILOT, SERVED 20 YEARS IN THE UNITED STATES ARMY.

I JOINED THE VETERAN OF FOREIGN WARS IN 1986 WHEN I RETIRED FROM THE ARMY.

SO I'VE BEEN A MEMBER OF THAT FOR ABOUT 40 YEARS NOW, WHICH MAKES ME 80 YEARS OLD THIS YEAR, THE SAME AGE AND CELEBRATIONS WE'RE HAVING FOR OUR VFW POST 7263 IN A COUPLE OF WEEKS.

THAT POST HAS BEEN AROUND FOR 80 YEARS, ABOUT AS LONG AS ME.

AND YOU'RE ALL WELCOME TO COME ON OVER THERE ON SATURDAY THE 16TH, LOVE TO HAVE YOU.

1 P.M. TO 6 P.M.

ANYWAY, BACK TO THIS.

I WAS HERE A YEAR AGO WHEN THIS FIRST CAME TO LIGHT.

YOU KNOW, UP UNTIL ABOUT, OH, LET'S CALL IT 23, 24, 25 MONTHS AGO, THE VSO FOR SANTA CRUZ COUNTY HAD A REPUTATION AS A GOLD STANDARD FOR THIS STATE.

SINCE THEN, THAT IS NOT THE CASE.

I'D GIVE IT PROBABLY A D AT BEST.

I WANT TO SEE IT BACK UP TO THE GOLD STANDARDS UP AT A WHERE IT SHOULD BE.

ALL YOU PEOPLE HERE COLLECTIVELY CAN MAKE THAT HAPPEN.

YOU KNOW WHAT NEEDS TO BE DONE.

YOU'VE BEEN LOOKING AT THIS FOR OVER 12 MONTHS NOW.

GET IT DONE.

I'M HUTCH COLLIER AND YOU'VE HAD MY INTRODUCTION.

- GOOD AFTERNOON, BOARD.

I WANT TO EXTEND MY SINCERE APPRECIATION TO THE CHIEF EXECUTIVE OFFICE, NICOLE, FOR THE COLLABORATION EFFORTS WITH VETERAN REPRESENTATIVES CONCERNING THE VSO MATTER.

THEIR COMMITMENT TO PARTNERSHIP HAS BEEN HIGHLY VALUED AND SIGNIFICANTLY CONTRIBUTE TO ONGOING INITIATIVES ADDRESSING VETERANS CONCERNS.

I HAVE SOME POSITIVE OBSERVATIONS DURING THIS PROCESS.

SVEN HAS SERVED AS THE REPRESENTATIVE FOR THE SANTA CRUZ EXECUTIVE OFFICE WITH PROFESSIONALISM, TRANSPARENCY, FOSTERING TRUST THAT FACILITATED EFFECTIVE COMMUNICATION BETWEEN VETERAN REPRESENTATIVES AND THE COUNTY EXECUTIVE OFFICE.

THE MEMORANDUM OF UNDERSTANDING REPRESENTED TODAY SERVES AS THE APPROPRIATE FOUNDATION FOR ADDRESSING AND RESOLVING OUR CONCERNS.

QUARTERLY REVIEWS CONDUCTED BY THE CEO WILL PROVIDE OVERSIGHT TO KEEP THE PROCESS ALIGNED, ULTIMATELY LEADING TO A MUTUALLY AGREED UPON SOLUTION.

I HAVE SOME CONCERNS FROM THE VETERAN COMMUNITY PERSPECTIVE.

THE VSO NEEDS TO BE OPERATED AS A DIVISION WITHIN THE COUNTY INFRASTRUCTURE.

TWO LEVELS OF HSD MANAGEMENT ABOVE THE VCO CREATE NON-VALUE ADDED OVERSIGHT THAT HINDER THE OFFICE EFFECTIVENESS IN SERVING VETERANS.

IN KIND COSTS HAVE NOT BEEN SUPPORTED WITH FACTUAL DATA.

SURVEYS OF OTHER COUNTIES REVEAL THAT VSO OFFICES DO OPERATE INDEPENDENTLY, REPORTING TO THE CEO WITHIN SOME CASES MOU BETWEEN CEO AND HSD.

THE VETERAN REPRESENTATIVES ARE COMMITTED TO FOLLOWING THIS PROCESS TO THE SUCCESSFUL CONCLUSION.

THE NUMBER OF VETERANS IN SANTA CRUZ COUNTY IS INCREASING, NOT DECREASING.

DON'T MINIMIZE THIS.

- THANK YOU. - WE'RE HERE.

- WE'RE GOING TO SEE THIS TO THE END.

[03:30:01]

THANK YOU ALL FOR YOUR ATTENTION TO THIS MATTER.

- WELL, THANK YOU.

MY NAME IS JOHN RAMIREZ.

I'M A MARINE CORPS VIETNAM COMBAT VETERAN.

I CAME TO THIS COUNTY IN THIS AREA IN THE EARLY 70S TO GO TO SCHOOL AT UCSC.

AND WITHIN MONTHS, I EXPERIENCED MY FIRST EPISODE OF PTSD.

AND IT TOOK ME SEVERAL YEARS TO GET TO THE POINT THAT I COULD WALK THROUGH THAT VETERANS SERVICE OFFICE DOOR.

AND THAT WAS IN THE LATE 70S.

AND I OWE MY LIFE AND MY SURVIVAL AND MY ENTIRE RECOVERY PROCESS TO WALKING THROUGH THOSE DOORS ALMOST 50 YEARS AGO.

IT WAS... IT'S THE REASON I'M DOING WHAT I'M DOING NOW.

IT'S THE REASON THAT I WAS ABLE TO LIVE AND THRIVE AND OPERATE AND LIVE AS A CONTRIBUTING CITIZEN TO THIS COUNTY.

I'VE LIVED IN EVERY ONE OF YOUR DISTRICTS AT SOME POINT.

AND I OWE, AGAIN, MY SUCCESS AND MY SURVIVAL TO THE COUNTY VETERANS SERVICE OFFICE BACK IN THAT DAY.

AND AT THAT POINT, THAT TIME, IT WAS A STANDALONE DEPARTMENT.

AND IT WAS ROBUST WITH SERVICES THAT I REALLY NEEDED AT THAT TIME.

THERE'S PEOPLE IN THIS ROOM WHO WERE THERE TO HELP ME.

ROBERT SHIPPEN WAS ONE OF THEM AND HIS WIFE WAS ONE OF THEM.

AND ALL THESE MEN AND WOMEN IN HERE HAVE BEEN PART OF THAT AND PART OF MY RECOVERY PROCESS.

I NOW WORK FOR THE VA.

I WORK IN A PROGRAM CALLED HUD-VASH WITH... FOR HOMELESS VETERANS.

WE NEED THE SERVICES OF THIS VSO OFFICE CRITICALLY.

[APPLAUSE] - HELLO, BOARD MEMBERS AND VETERAN LEADERSHIP.

MY NAME IS MOHAN BHUTIA.

PEOPLE CALL ME BRO.

SO IT'S EASY.

I JUST WANTED TO ADDRESS THIS SITUATION BASED ON MY PERSONAL EXPERIENCE.

I MOVED TO SANTA CRUZ JUST AT THE BEGINNING OF THIS YEAR.

AND I CAN ATTEST, AS A HOMELESS VETERAN, BY THE WAY, I CAN ATTEST TO THE SERVICES THAT I GOT HERE WHEN I GOT HERE.

SOME OF THE PEOPLE WHO ASSISTED ME PERSONALLY ARE IN THIS ROOM.

YOU'VE GOT AARON WHO ASSISTED ME.

YOU'VE GOT GAVIN.

YOU'VE GOT JOEL.

YOU'VE GOT... THERE'S MULTIPLE PEOPLE IN THIS ROOM.

THE THING I SEE HERE IS THE SERVICES THAT VETERANS NEED ARE NOT SINGULAR.

THEY'RE MULTI-PRONGED.

THEY'RE MULTI-FACETED.

AND SO KEEPING SERVICES IN-HOUSE IN ONE PLACE GREATLY INCREASE THE EFFICIENCY OF GETTING THAT CARE TO VETERANS.

AND SO I THINK THAT IF WE CAN MAINTAIN THE AUTONOMY OF THE VSO AS IS WITH THE RECOMMENDATION OF THE VETERANS' LEADERSHIP, I THINK WE WILL HAVE BETTER RESULTS.

I THINK WE WILL HAVE MORE PEOPLE FALLING THROUGH THE CRACKS IF WE ARE REFERRING VETERANS TO MULTIPLE DIFFERENT PLACES.

MORE REFERRALS MEANS LESS SHOWS, AND LESS SHOWS MEANS LESS CARE AND LESS EFFICIENCY OVERALL.

SO THAT'S BEEN MY EXPERIENCE.

I WANT TO THANK EVERYONE WHO SHOWED UP AND THE EFFORTS THAT EVERYONE HAS MADE.

AND I HOPE THAT YOU TAKE THAT INTO CONSIDERATION.

THANKS.

[PAUSE] - GOOD MORNING, BOARD.

GOOD MORNING, VETERAN LEADERSHIP.

MY NAME IS ERIN DUNN.

I'M A U.S. ARMY SERVICE-CONNECTED VETERAN WHO HAS BENEFITED GREATLY FROM THE VSO.

I AM ALSO, AT THIS MOMENT, THE CURRENT VETERAN ADVOCATE FOR SANTA CRUZ COUNTY.

THAT POSITION IS GOING TO BE CUT, AND THAT'S NOT WHAT I'M HERE TO TALK ABOUT.

I'M HERE TO TALK ABOUT THE ISSUE THAT IS IN THE ROOM RIGHT NOW, WHICH IS REPAIRING THE RELATIONSHIP BETWEEN COUNTY LEADERSHIP AND THE VETERAN SERVICE OFFICE.

AS A VETERAN IN THIS COUNTY, AND A LOVER OF SANTA CRUZ COUNTY, AND THE THINGS THAT I SEE THE COUNTY TRYING TO DO FOR PEOPLE, I'M GOING TO SPEAK AS A HUMAN FROM THE HEART.

I DIDN'T PREPARE A SPEECH.

I WASN'T GOING TO GET UP, BUT I WAS COMPELLED TO MOVE UP TO THE STAND TODAY SO THAT YOU COULD ALL KNOW HOW IMPORTANT THIS OFFICE IS TO ME AND TO MY VETERANS COMMUNITY OUT HERE.

I GO TO HOSPITALS AND INSTITUTIONS SO THAT VETERANS CAN LEARN ABOUT THEIR BENEFITS.

I'M OUT IN THE STREET AND ON THE LEVEE TALKING TO VETERANS IN THE MORNING, AND I'M WEARING A SUIT JACKET ON THURSDAY AFTERNOON

[03:35:02]

SO I CAN SIT IN VETERANS COURT AND SUPPORT THEM.

THE ROLE THAT THIS OFFICE PLAYS IN THE LIVES OF VETERANS EXTENDS FAR BEYOND WHAT YOU ALL SEE IN THIS BOARDROOM.

I AM HERE TO TELL YOU AND TO ASSURE YOU THAT THE VETERAN SERVICE OFFICE DOES AN INCREDIBLE JOB OF SERVING VETERANS IN THIS COUNTY, CONNECTING COMMUNITY MEMBERS TO SERVICES THAT THEY NOT ONLY EARNED AS VETERANS, BUT THAT THEY COULD ALSO ACCESS AS COMMUNITY MEMBERS HERE.

I IMPLORE YOU TO CONTINUE STRIVING TOWARDS A SOLUTION THAT ADDRESSES ISSUE IN THE ROOM TODAY, AND I THANK YOU VERY MUCH FOR HEARING ME AND HEARING US OUT TODAY AS THESE CONVERSATIONS CONTINUE.

MADAM CLERK, WILL YOU PLEASE BEGIN CALLING THE ONLINE CALLERS? - YES.

[APPLAUSE] - THANK YOU.

[PAUSE] CALL IN USER 915.

[PAUSE] - HELLO, CAN YOU HEAR ME? - YES, WE CAN.

MY NAME IS BECKY STEINBRENNER.

I AM NOT A VETERAN, BUT MANY MEMBERS OF MY FAMILY HAVE SERVED IN THE MILITARY, AND I WANT TO TAKE THIS MOMENT TO THANK ALL OF THOSE IN THE AUDIENCE.

I CAN'T SEE YOU.

I'M ON THE PHONE, BUT I WANT TO THANK YOU FOR YOUR SERVICE AND THOSE ONLINE AS WELL.

WHAT I'M HEARING TODAY IS A STEP IN THE RIGHT DIRECTION.

I MEAN, JUST NOT PUTTING THIS ISSUE AT THE VERY END OF THE BOARD'S AGENDA LIKE WHAT HAPPENED IN JANUARY IS AN IMPROVEMENT, BUT THERE'S MORE WORK TO BE DONE.

I WOULD DEFER TO THOSE WHO HAVE WORKED SO HARD ON THIS MOU.

TO... I WOULD TRUST THEM. [CHUCKLES] IF THIS IS A STEP IN THE RIGHT DIRECTION, IT IS A STEP IN THE RIGHT DIRECTION, BUT I DON'T SEE THAT IT IS THE END GAME.

I THINK WHAT YOU HAVE HEARD AND IS CLEAR IS THAT THE VSO NEEDS TO BE UP FROM UNDER THE COUNTY AND ANSWERED DIRECTLY TO THE CEO.

IF THIS MOU IS A TRANSITION, LET'S SEE IT AS A TRANSITION, AND I DO BELIEVE THAT IF THERE ARE QUARTERLY REPORTS TO THE CEO, THOSE REPORTS NEED TO BE ALSO PROVIDED PUBLICLY TO YOUR BOARD AS AN AGENDA ITEM SO THAT THIS DOESN'T GET LOST AGAIN.

WE CANNOT ALLOW THAT, AND IT IS DISRESPECTFUL TO JUST KICK IT DOWN THE ROAD.

I WANT TO COMMEND THE VETERANS WHO ARE ON THE RADIO WITH VETERANS TAKE CHARGE AND THOSE WHO PARTICIPATE AND ORGANIZE GREAT EVENTS WITH VETS FOR VETS.

IT IS TIME THAT THE COUNTY STEP BACK AND PUT THE VSO AS AN INDEPENDENT DEPARTMENT ANSWERING ONLY TO THE CEO.

[COUGHS] - CHAIR, I SEE NO FURTHER SPEAKERS ONLINE.

I'LL NOW RETURN TO THE BOARD FOR COMMENTS AND A MOTION.

SUPERVISOR CUMMINGS.

AND I JUST WANT TO START BY THANKING ALL THE VETERANS WHO SHOWED UP TODAY.

I ALSO REALLY WANT TO THANK THE COUNTY STAFF FOR WORKING WITH THE VETERANS ON THIS ISSUE.

YOU KNOW, I THINK WHERE WE'VE LANDED TODAY JUST DEMONSTRATES THAT THERE'S ONGOING WORK.

WE'RE WORKING THROUGH CREATING BETTER RELATIONSHIPS AND COMING TO SOME KIND OF AGREEMENT ON SOMETHING THAT'S GOING TO BENEFIT THE VETERANS WHO LIVE IN OUR COMMUNITY, WHO SERVED OUR COUNTRY.

AND I ALSO WANT TO THANK ALL OF YOU FOR YOUR SERVICE.

I JUST THINK AT THE END OF THE DAY, YOU KNOW, WE NEED TO TRY TO DO WHATEVER WE CAN THAT'S GOING TO PROVIDE THE MAXIMUM AMOUNT OF SUPPORT TO VETERANS GETTING THE BEST LEVEL OF SERVICE FROM OUR COUNTY.

I DO HAVE SOME CONCERNS WITH THE FACT THAT, YOU KNOW, THAT 31% OF VETERANS ARE ALSO RECIPIENTS OF HSD SERVICES.

I MEAN, THAT MEANS THAT ABOUT TWO-THIRDS OF THE VETERANS IN OUR COMMUNITY ARE NOT RECIPIENTS OF HSD SERVICES.

SO, I STILL HAVE SOME CONCERN AROUND, YOU KNOW, WHY THAT'S USED AS JUSTIFICATION FOR HOUSING UNDER HSD.

BUT BE THAT AS IT MAY, YOU KNOW, WHAT WE'VE LANDED ON TODAY SEEMS LIKE PROGRESS.

I THINK THERE'S OPPORTUNITIES FOR MORE CONVERSATION.

I'M GOING TO MOVE THE RECOMMENDED ACTIONS, BUT I HAVE A COUPLE CHANGES THAT I WANT TO MAKE.

IN TERMS OF NUMBER THREE, I'D LIKE TO RECOMMEND THAT STAFF RETURNS WITH AN UPDATE AT THE MID-YEAR BUDGET, AND THEN DIRECT THE CEO, HSD, VSO, AND VETERANS LEADERSHIP TO RETURN ON OR BEFORE 2027 WITH RECOMMENDATIONS FOR NEXT STEPS, ALONG WITH MOVING ITEMS NUMBER ONE AND TWO.

I KIND OF FEEL LIKE WITH THE PREVIOUS SPEAKER, I MEAN, IT WILL BE A YEAR BEFORE WE HEARD ON ANY TYPE OF PROGRESS

[03:40:01]

AND WHAT WILL BE HAPPENING.

AND I THINK HAVING SOME KIND OF UPDATE COME TO THE BOARD BY THE MID-YEAR BUDGET WOULD HELP US UNDERSTAND WHAT'S GOING ON AND ENSURING THAT THE DIRECTION WE'RE MOVING IN IS POSITIVE DIRECTION.

AND THEN A YEAR FROM NOW OR BEFORE THAT, WE NEED TO TAKE FINAL ACTION ON WHAT WE'RE GOING TO DO.

WE DON'T WANT TO HAVE THIS DRAG OUT FOREVER.

WE DON'T NEED TO HAVE THIS DRAG OUT FOREVER.

I THINK THAT IF THERE'S, YOU KNOW, COLLABORATION AND WE'RE WORKING TOWARDS A SOLUTION, LET'S TRY TO DO THAT SO WE CAN HAVE OUR STAFF GO FOCUS ON OTHER THINGS, ALLOW THE VSO OFFICE TO OPERATE.

AND AS WE CONTINUE TO GET THOSE UPDATES, WE'LL KNOW HOW WE NEED TO MAKE CHANGES.

BUT I THINK GETTING AN UPDATE IN SIX MONTHS AND THEN HAVING SOME FINAL ACTION TAKE PLACE BY THIS TIME NEXT YEAR MAKES SENSE SO THAT WE'RE MAKING SURE WE'RE WORKING TOWARDS A FINAL SOLUTION.

AND SO I JUST WANT TO THANK EVERYBODY AGAIN FOR ALL THEIR HARD WORK ON THIS.

IT'S NOT PERFECT, BUT IT'S PROGRESS.

AND I'LL CONCLUDE MY COMMENTS THERE.

- WELL, IF THAT WAS A MOTION, I WOULD SECOND IT.

AND I GUESS, YOU KNOW, FOR ME, I'D LIKE TO SEE A STRONG MOU, ONE THAT HAS LANGUAGE IN IT THAT HAS A LEVEL OF AUTONOMY FOR THE VSO'S OFFICE.

OR AT LEAST, YOU KNOW, SOME SORT OF A SCHEDULED RELATIONSHIP WITH HUMAN SERVICES.

BUT, YOU KNOW, I THINK IT'S UP TO THE VETERANS TO DECIDE, YOU KNOW, WHERE THEY WOULD LIKE TO SEE THEIR MOU.

BUT FOR ME, I WOULD LIKE TO SEE A STRONG MOU THAT HAS SOME LANGUAGE ON AUTONOMY FOR THE VSO.

WE HAVE A MOTION FROM SUPERVISOR CUMMINGS AND A SECOND FROM SUPERVISOR HERNANDEZ.

SUPERVISOR KOENIG? - COULD YOU JUST REITERATE THE DATES YOU HAD SUGGESTED, SUPERVISOR CUMMINGS? - YEAH, THAT WE GET AN UPDATE AT THE MID-YEAR BUDGET AND THEN ON BEFORE MAY 2027, WE HAVE STAFF WITH CEO, HSD, VSO, VETERANS LEADERSHIP RETURN WITH THE RECOMMENDATIONS FOR NEXT STEPS.

- GOTCHA, SO FEBRUARY 2027 AND MAY 2027? - YES.

- ALL RIGHT, ALL RIGHT, THANK YOU.

- ANY FURTHER COMMENTS? SEEING NONE, I JUST WANT TO START OFF BY THANKING THE VETERANS IN THE ROOM FOR BEING HERE TODAY.

THANK YOU FOR YOUR SERVICE.

AND THANK YOU FOR BEING HERE TO SHARE WITH US WHAT'S IMPORTANT.

I REALLY APPRECIATE YOUR PRESENCE TODAY.

I ALSO WANT TO THANK DAVE AND DEAN FOR TAKING SOME TIME TO MEET WITH ME LAST WEEK.

IT WAS REALLY HELPFUL TO HAVE SOME TIME WITH YOU TO HEAR ABOUT HOW THINGS ARE GOING.

AND IT MAKES ME FEEL A LOT MORE CONFIDENT IN THE COLLABORATIVE RECOMMENDATION THAT'S BEING PRESENTED HERE TODAY.

AND THANK YOU TO SVEN AND THE CEO'S OFFICE AND HSD LEADERSHIP FOR PARTICIPATING IN A COLLABORATIVE PROCESS.

IT APPEARS TO ME AFTER OUR CONVERSATION THAT WE ARE IN A PROCESS OF LEARNING AND GROWING AND IMPROVING.

AND WHILE WE AREN'T THERE YET, THIS IS A STEP IN THE RIGHT DIRECTION.

AND AS A BOARD MEMBER, I LOOK FORWARD TO CONTINUING TO LEARN AND SUPPORT YOUR FUTURE RECOMMENDATIONS AS IT RELATES TO THE MORE LONG TERM STRUCTURE THAT WORKS BEST IN ENSURING THAT OUR VETERANS RECEIVE THE SERVICES THAT THEY DESERVE.

MY HOPE WHEN YOU COME BACK IS THAT IT'S JUST LIKE IT IS TODAY.

COUNTY STAFF AND VSO SITTING TOGETHER PROPOSING SOMETHING THAT YOU ALL AGREE ON.

THAT MAKES OUR JOBS A LOT EASIER. [CHUCKLES] SO WITH THAT, I AM SUPPORTIVE OF THIS MOTION TODAY.

AND WE'LL ASK THE CLERK TO PLEASE CALL THE ROLL.

- CERTAINLY.

- SUPERVISOR HERNANDEZ? - AYE.

MOTION PASSES FIVE TO ZERO.

[APPLAUSE] WE ARE NOW GOING TO RECESS FOR LUNCH.

AND I'LL ASK THAT WE RETURN AT 1:30.

- CHAIR, IF I MAY ASK REAL QUICK.

- YES.

- I'M WONDERING IF IT'S POSSIBLE TO MOVE THE GOOD CONTRACTOR ORDINANCE UP.

I'M JUST DEPENDING ON THE LEVEL OF CONVERSATION, I HAVE TO HAVE A HARD STOP AT THREE O'CLOCK.

AND I'M NOT SURE HOW LONG THE SHERIFF'S ITEM WOULD GO.

BUT I THINK IT WOULD HELP US GET SOME CERTAINTY AROUND THAT TIME AND ENSURE THAT I'M AVAILABLE TO BE PRESENT FOR THAT CONVERSATION.

WE CAN MOVE THAT TO 1:30.

- SORRY, SUPERVISOR CUMMINGS.

IT WAS A LITTLE BIT HARD TO HEAR YOU BECAUSE THE ROOM GOT VERY LOUD.

SO IT SOUNDS LIKE YOU'RE ASKING FOR A CHANGE IN THE AGENDA.

AND WE WILL ADDRESS THAT WHEN WE COME BACK ON AT 1:30.

[03:45:02]

[SILENCE] - WELCOME BACK.

[PAUSE]

[9. Consider adopting resolution renewing the County’s uncodified ordinance that adopted and approved a Military Equipment Use Policy for the Santa Cruz County Sheriff’s Office (Ord. 5435), make findings based on the Santa Cruz County Sheriff’s Office Annual Military Equipment Report for 2025, and take related actions]

WE'LL NOW MOVE ON TO ITEM NUMBER NINE.

CONSIDER ADOPTING A RESOLUTION RENEWING THE COUNTY'S UNCODIFIED ORDINANCE THAT ADOPTED AND APPROVED A MILITARY EQUIPMENT USE POLICY FOR THE SANTA CRUZ COUNTY SHERIFF'S OFFICE AND MAKE FINDINGS BASED ON THE SANTA CRUZ COUNTY SHERIFF'S OFFICE ANNUAL MILITARY EQUIPMENT REPORT FOR 2025 AND TAKE RELATED ACTIONS.

[PAUSE] [SILENCE] [SILENCE] - GOOD AFTERNOON, CHAIR MARTINEZ AND OTHER MEMBERS OF THE BOARD.

THANK YOU FOR GIVING US THIS OPPORTUNITY TO PRESENT OUR 2025 AB 481 ANNUAL REPORT.

I'M ACCOMPANIED TODAY BY UNDER SHERIFF JACOB AINSWORTH.

HE'S GOING TO BE SEATED HERE INSTEAD OF DAN FREITAS.

AND AGAIN, MY NAME IS DEE BALDWIN.

I'M A LIEUTENANT WITH THE SHERIFF'S OFFICE, AND I'M CURRENTLY OUR AB 481 COORDINATOR.

JUST A QUICK AGENDA FOR TODAY.

WE'LL GO OVER A BRIEF INTRODUCTION OF AB 481 REVIEW OF SUMMARY OF OUR COMPLAINTS OR AUDITS THAT HAVE COME TO THE OFFICE.

REVIEW A SUMMARY OF THE 2025 DEPLOYMENTS AND EXPENDITURES.

GIVE SOME INVENTORY EXAMPLES BY PHOTOGRAPH SO THAT PEOPLE CAN SEE THE ITEMS THAT WE'RE REFERRING TO, AND THEN ANSWER ANY QUESTIONS THAT MAY COME UP.

AS A REMINDER, THE HISTORY OF AB 481, THIS WAS SIGNED INTO LAW IN SEPTEMBER OF 2021 AND ACTIVE JANUARY 1ST, 2022.

THE LAW ESTABLISHED REQUIREMENTS FOR THE ACQUISITION AND USE OF MILITARY EQUIPMENT.

IT ALSO MADE REQUIREMENTS THAT REQUIRE BOARD APPROVAL BE MADE WITH A POLICY AND ANNUAL AUDITS THAT COME THROUGH.

THE ANNUAL REPORTING REQUIREMENTS HAVE SIX DIFFERENT FACTORS THAT INCLUDES A SUMMARY OF THE MILITARY EQUIPMENT USE, AND THAT'S HOW THE EQUIPMENT WAS USED, THE PURPOSE OF ITS USE.

IT INCLUDES A SUMMARY OF COMPLAINTS, ANY COMPLAINTS OR CONCERNS THAT ARE RECEIVED ABOUT THE EQUIPMENT THROUGHOUT THE YEAR ARE DOCUMENTED IN THE ANNUAL REPORT.

IT ALSO CONTAINS AUDIT RESULTS THAT DEMONSTRATE OUR INTERNAL AUDITS VIOLATIONS AND ACTIONS THAT WERE TAKEN ANNUAL COSTS, WHICH IS A TOTAL BREAKDOWN OF THE EQUIPMENT TYPE BASED UPON PERSONNEL HOURS AND EXPENDITURES ON THOSE ITEMS. THE INVENTORY, WHICH IDENTIFIES THE TOTAL QUANTITY POSSESSED FOR EACH EQUIPMENT TYPE, AND THEN ANY PLANNED ACQUISITIONS FOR 2026, THE SHERIFF'S OFFICE DID NOT RECEIVE ANY FORMAL COMPLAINTS REGARDING OUR MILITARY EQUIPMENT.

AND THE OFFICE OF THE INSPECTOR GENERAL DID NOT RECEIVE ANY FORMAL COMPLAINTS AS WELL.

LAST YEAR, DURING OUR ANNUAL PRESENTATION, WE RECEIVED A COUPLE OF ITEMS OF FEEDBACK, SOME GENERAL CONCERNS FROM THE PUBLIC ABOUT PATROL AR-15S NOT BEING INVENTORIED AND ON OUR LIST THAT WE REPORT ANNUALLY.

AT THE BEGINNING OF THE YEAR, SHERIFF CLARK MADE A COMMITMENT TO INCLUDE THOSE RIFLES.

SO WE'RE HAPPY TO ANNOUNCE THAT THOSE ARE NOW IN THE INVENTORY AND THE DEPLOYMENTS WERE TRACKED FROM THE BEGINNING OF JULY ON.

AS PART OF THAT PROJECT, WE DEVELOPED ONE OF THE FIRST IN THE COUNTY, A SYSTEM THAT ALLOWS US TO TRACK ALL DEPLOYMENTS OF EVERY PIECE OF EQUIPMENT THAT WE HAVE IN THE FORM OF A BARCODE THAT'S ATTACHED TO EVERY INDIVIDUAL ITEM THAT IS FALLING UNDER THIS REPORT.

SO NOW TO HAVE BETTER ACCOUNTABILITY, EVERY TIME A DEPUTY CHECKS OUT AN ITEM OF EQUIPMENT, THE BARCODE IS SCANNED BY THEIR CELL PHONE AND THEN THE CIRCUMSTANCES OF THE USE, THE TIME, THE DATES, AND THE RELEVANT INFORMATION IS LOGGED AT THAT POINT.

THIS HAS REALLY INCREASED OUR ACCOUNTABILITY AND AUDITING AND HAVING A LIVE FEED ANYTIME THAT THOSE ITEMS ARE USED.

THERE WAS ALSO A REQUEST LAST YEAR TO BETTER PUBLICIZE THE PUBLIC MEETING THAT WAS OUT.

SO THIS YEAR WE MADE MULTIPLE SOCIAL MEDIA POSTS.

WE PUT OUT A PRESS RELEASE, WE POSTED IT AT THE OFFICE, AND WE SAW A HIGHER ATTENDANCE AT OUR PUBLIC MEETING THAT WAS HELD LATE LAST MONTH.

THE RESULTS OF OUR INTERNAL AUDITS, AS WE CONTINUE EACH YEAR, THERE'S CERTAIN ITEMS THAT ARE DEEMED NO LONGER SERVICEABLE AND WE DECOMMISSION THOSE.

SO THIS YEAR WE'RE WORKING ON DECOMMISSIONING A COUPLE ITEMS IN OUR DRONE INVENTORY.

IT ALSO ALLOWS US TO SEE THE EQUIPMENT AND TAKE CONSTANT ACCOUNTABILITY FOR WHAT THEY ARE AND THE CONDITION THAT THEY'RE IN TO MAKE SURE THAT WE'RE REPLACING THOSE THAT ARE NEEDED OR WE'RE DECOMMISSIONING THOSE THAT ARE NO LONGER NEEDED.

THIS IS A VISUAL GRAPH TO REPRESENT THE TOTAL DEPLOYMENTS, THE TRAINING HOURS, AND THE TRAINING DEPLOYMENTS.

SO IN THIS GRAPH, IT'S CONTAINED WITHIN THE REPORT IN A NARRATIVE FIELD.

WE JUST FOUND IT MORE VISUAL TO BE ABLE TO REPRESENT THE EXPENDITURE OF HOURS, THE NUMBER OF DEPLOYMENTS, AND THE AMOUNT OF TIMES THAT THESE ITEMS WERE USED IN THE FIELD.

SO A DEEPER REVIEW INTO THE ANNUAL REPORT BREAKS DOWN EVERY DEPLOYMENT.

AND WHAT WE'RE DOING IS ANYTIME THAT AN ITEM IS TAKEN OUT OF A PATROL CAR AND PRESENTED IN PUBLIC,

[03:50:03]

WHETHER IT BE USED FOR ANYTHING, IT IS TRACKED AS THAT USE.

AND SO IN THE ANNUAL REPORT, YOU CAN SEE THE CIRCUMSTANCES OF EVERY SINGLE TIME THAT ONE OF THOSE EQUIPMENT ITEMS WAS DISPLAYED OR TAKEN OUT IN PUBLIC.

ADDITIONALLY, WE TRACK ALL STAFF HOURS ASSOCIATED TO THE USE AND TRAINING OF EVERY ITEM.

AND SO THIS GRAPH JUST REFLECTS A VISUAL OF THE AMOUNT OF TRAINING.

AN ITEM OF NOTE HERE IS THE PATROL AR-15 RIFLES.

THE TOTAL TRAINING HOURS ARE REQUIRED THAT THOSE BE MET BY POST STANDARDS.

SO THAT'S WHY YOU SEE A HIGH CONSUMPTION OF HOURS.

THAT'S TO ALLOW EVERY ONE OF OUR OFFICERS TO MEET THE TRAINING REQUIREMENTS THAT ARE MANDATED.

THIS IS A BREAKDOWN OF THE STAFF EXPENDITURES IN THE FORM OF HOURLY WAGES THAT ARE DEPLOYED FOR TRAINING PURPOSES OR ANY INDIVIDUAL USE OF THE ITEMS. SO THROUGHOUT THE YEAR, WE GET A TOTAL NUMBER OF HOURS, AND THIS REFLECTS THE COST OF THE STAFF HOURS WHILE UTILIZING THOSE PIECES OF EQUIPMENT.

AND AGAIN, EVERYTHING THAT'S IN THESE VISUALS IS SPELLED OUT IN A NARRATIVE WITHIN THE ANNUAL REPORT.

TO GIVE A VISUAL REPRESENTATION, WE'VE TAKEN SOME PHOTOGRAPHS TO CAPTURE THE DIFFERENT CATEGORIES THAT ARE WITHIN THE INVENTORY.

WE CAN BEGIN WITH CATEGORY ONE, WHICH IS OUR SWAT TEAMS ROBOT.

THIS IS A TWO-WAY COMMUNICATION DEVICE THAT ALLOWS SWAT OPERATORS TO INSERT THIS PIECE OF EQUIPMENT INTO AN AREA THAT'S DEEMED UNSAFE AND ESTABLISH SOME FORM OF COMMUNICATION.

IT ALSO HAS A VIDEO CAMERA ON IT SO WE CAN GET INFORMATION ABOUT THAT INTERNAL AREA WITHOUT POSING A RISK TO OFFICER SAFETY.

WE'VE HAD THIS FOR MANY YEARS, AND WE CONTINUE TO HAVE IT FUNCTIONAL AND A DEPLOYABLE TOOL THAT WE HAVE.

ANOTHER CATEGORY ONE ITEM IS THE DJI AVADA.

THIS IS AN INTERIOR DRONE THAT ALLOWS SIMILAR CAPABILITIES AS THE ROBOT, JUST IN AN AERIAL PLATFORM.

SO THIS IS USED IN SITUATIONS THAT ARE DEEMED DANGEROUS FOR AN OFFICER TO GO INTO.

WE CAN HAVE AN OPERATOR OUTSIDE OF THE BUILDING USE A REMOTE CAMERA TO GET INSIDE AND GET INFORMATION ABOUT WHAT IS GOING ON IN A DANGEROUS AREA.

SO VERY EFFECTIVE.

WE ALSO USE THIS FOR SEARCH AND RESCUE.

WE CAN SEARCH LARGE OUTSIDE AREAS TO FIND MISSING PEOPLE, AND WE'VE HAD SUCCESS WITH LOCATING MISSING PERSONS WITH THE USE OF THE DRONES.

THE CATEGORY TWO ITEM IS OUR SWAT TEAMS ARMORED VAN.

THIS ORIGINALLY IS A COMMERCIALLY AVAILABLE FORD VAN THAT HAS BEEN UPFITTED ON THE INSIDE TO HAVE BALLISTIC PROTECTION.

SO THIS ALLOWS US TO GET INTO AN AREA WHERE THERE'S A PERCEIVED THREAT OR DANGER OF GUNFIRE AND ALLOW US TO MOVE THERE SAFELY.

IT'S ALSO USED TO EXTRACT ANY VICTIMS THAT ARE INJURED SO WE CAN GET THEM INTO A PLACE OF SAFETY WHILE MEDICAL TREATMENT CAN BEGIN, AND WE CAN TRANSPORT THEM TO THE HOSPITAL.

CATEGORY FIVE IS OUR BOMB INCIDENT COMMAND VEHICLE.

THIS, AGAIN, IS ANOTHER COMMERCIALLY AVAILABLE VAN THAT HAS BEEN CONVERTED TO ALLOW THE BOMB TEAM TO COORDINATE THEIR INCIDENTS FROM WITHIN THE VAN.

SO THERE'S COMPUTERS AND RADIOS THAT ALLOW THE INCIDENT COMMAND OF ANY BOMB TEAM CALL OUT TO OPERATE FROM THERE.

IT ALSO CARRIES THE BOMB TEAM ROBOT AND ALLOWS THEM TO DEPLOY THE ROBOT FROM WITHIN THE COMMAND VEHICLE.

CATEGORY NUMBER FIVE IS AN EXAMPLE OF OUR MOBILE INCIDENT COMMAND POST.

THIS IS A COMMERCIALLY AVAILABLE VAN HAT HAS A SERIES OF DESKS, TABLES, AND COMPUTERS ON THE INSIDE.

WE USE THIS FOR MAJOR EVENTS SUCH AS THE COUNTY FAIR.

WE DEPLOY THIS VEHICLE THERE FOR THE ENTIRE WEEK OF THE FAIR, AND THAT'S WHERE WE RUN OUR INCIDENT COMMAND OUT OF.

SO ALL THE PUBLIC SAFETY OPERATIONS FOR THE FAIR EVENT ARE COORDINATED FROM THE VAN.

CATEGORY NINE IS AN EXAMPLE OF OUR 308 AMMUNITION.

THIS IS THE PRECISION AMMUNITION THAT IS USED BY OUR SWAT TEAM OUT OF THEIR RIFLES.

CATEGORY NUMBER 12 IS AN EXAMPLE OF OUR PEPPERBALL LAUNCHER.

THIS IS A 68 CALIBER PROJECTILE LAUNCHER, VERY SIMILAR TO A COMMERCIALLY AVAILABLE PAINTBALL GUN.

THIS ALLOWS A FURTHER DEPLOYMENT OF THAT TO PREVENT ANY CONFRONTATION FROM HAPPENING IN CLOSE RANGE.

ITEM NUMBER 12 IS EXAMPLES OF A FLASHBANG AND A STING BALL.

THOSE ARE BOTH DIVERSIONARY DEVICES THAT ARE USED IN DANGEROUS SITUATIONS TO ALLOW OFFICERS TO MOVE AND GET INTO POSITIONS, INCREASING THEIR SAFETY.

CATEGORY 14 IS AN EXAMPLE OF THE BEANBAG ROUND THAT ARE DEPLOYED FROM A 12-GAUGE SHOTGUN.

IT'S A LESS LETHAL AMMUNITION THAT IS INTENDED TO NOT CAUSE LETHAL INJURIES FROM A POSITION FURTHER BACK SO THAT DEPUTIES DON'T NEED TO APPROACH AND BE SO CLOSE AND THEY CAN DIRECT THAT ITEM AT AN INDIVIDUAL UNDER CERTAIN CIRCUMSTANCES.

THAT CONCLUDES THE FORMAL PORTION OF OUR PRESENTATION, AND WE'RE OPEN TO ANSWER ANY QUESTIONS.

[03:55:01]

I'LL NOW RETURN TO THE BOARD FOR QUESTIONS.

[PAUSE] MADAM CLERK, CAN YOU LET ME KNOW IF SUPERVISOR CUMMINGS HAS HIS HAND UP? - NOT AT THIS TIME, CHAIR.

SEEING NO QUESTIONS FROM THE BOARD, I'LL NOW OPEN IT TO PUBLIC COMMENT ON THIS ITEM.

SEEING NO ONE IN THE CHAMBERS, IS THERE ANYONE ON THE PHONE? - YES, CHAIR, WE DO HAVE A CALLER ONLINE.

[PAUSE] PAMELA, YOUR MICROPHONE IS NOW AVAILABLE.

- OH, THANK YOU.

YEAH, I WANTED TO THANK YOU ALL FOR, THANK THE SHERIFF'S OFFICE FOR THE REPORT AND THE TRANSPARENCY AND JUST REMIND THE PUBLIC AND THE BOARD THAT, YOU KNOW, WHY WE HAVE THIS LAW.

AND HAVING NO COMPLAINTS, HAVING NO INJURIES OR DEATHS IS...

WE'RE LUCKY THAT'S SOMETHING THAT DOES HAPPEN IN OTHER PLACES.

AND I JUST WANT TO READ, BECAUSE I THINK IT'S IMPORTANT CONTEXT, THE...

FROM AB 481, THE ACQUISITION OR THE DEPLOYMENT, ESPECIALLY OF MILITARY EQUIPMENT IN OUR COMMUNITIES, ADVERSELY IMPACTS THE PUBLIC SAFETY AND WELFARE.

THAT'S WHY WE HAVE THIS LAW.

IT INCREASES THE RISK OF CIVILIAN DEATH, SIGNIFICANT RISK TO CIVIL RIGHTS, CIVIL LIBERTIES, PHYSICAL AND PSYCHOLOGICAL WELL-BEING, AND THE INCURMENT OF SIGNIFICANT FINANCIAL COSTS.

MILITARY EQUIPMENT IS MORE FREQUENTLY DEPLOYED IN LOW-INCOME BLACK AND BROWN COMMUNITIES, MEANING THE RISKS AND IMPACTS OF POLICE MILITARIZATION ARE EXPERIENCED MORE ACUTELY IN THESE MARGINALIZED COMMUNITIES.

AND SO I JUST WANT TO ALSO REMIND THE BOARD, I'M A LITTLE CONCERNED THAT THERE'S NO QUESTIONS.

AND JUST REMIND YOU THAT MILITARIZED EQUIPMENT HAS BECOME NORMALIZED AND THAT IT'S YOUR RESPONSIBILITY TO ENSURE THAT IT'S NECESSARY, THAT WHAT WE HAVE IN OUR COMMUNITIES IS ONE NECESSARY, THAT IT SAFEGUARDS PUBLIC WELFARE AND CIVIL RIGHTS.

AND THAT IT'S REASONABLY COST-EFFECTIVE.

SO I'M A LITTLE CONCERNED THAT YOU'RE NOT ASKING QUESTIONS AND VERY QUICKLY IN THE SHORT TIME I HAVE, LESS LETHAL DOESN'T MEAN NON-LETHAL AND PEPPER BALLS ARE USED IN OUR JAILS AND THIS IS IN A JAIL COMMUNITY WHERE THERE'S A VERY HIGH RATE OF MENTAL HEALTH ISSUES AND USING THESE KIND OF THINGS WILL EXACERBATE PSYCHOLOGICAL DISTRESS AND POTENTIALLY ESCALATE HARM.

AND LASTLY, I WANT TO ASK YOU TO CREATE A MAILING LIST FOR PUBLIC MEETING NOTIFICATIONS BECAUSE...

I'LL NOW RETURN TO THE BOARD FOR COMMENTS AND A MOTION.

SUPERVISOR CUMMINGS.

I JUST WANT TO THANK THE SHERIFF'S DEPARTMENT, ONE, FOR PUTTING THE AR-15S ON THE LIST, BUT ALSO FOR THE MEETINGS THAT YOU ALL HAVE BEEN ABLE TO HOLD WITH THE COMMUNITY BEFORE THIS ITEM COMES TO THE BOARD.

WE KNOW THAT'S SOMETHING THAT THE COMMUNITY WAS ASKING FOR YEARS AGO AND I THINK THAT'S IN PART WHY TODAY WE DON'T HAVE AS MANY PEOPLE WHO'VE BEEN CONTACTING US OR WHO'VE JOINED US TODAY.

I THINK THAT, YOU KNOW, THERE'S CONFIDENCE IN THE COMMUNITY AROUND THE TRANSPARENCY THAT YOU ALL HAVE COMMITTED TO AND THIS IS ONE OF THE FIRST FEW WE'VE HAD ZERO EMAIL COMPLAINTS, OR I AT LEAST HAVEN'T RECEIVED ANY, AND THIS ISSUE HAS BEEN SOMETHING WE'VE BEEN HEARING FOR AT LEAST THE PAST FOUR YEARS ON THE BOARD AND PROBABLY FIVE OR SIX YEARS, THE TWO YEARS BEFORE WHEN I WAS ON THE CITY COUNCIL.

AND SO JUST WANTED TO THANK YOU ALL ON BEING PROACTIVE WITH BRINGING THIS FORWARD AND I'LL BE SUPPORTING THE RECOMMENDATIONS TODAY.

- FURTHER COMMENTS? SUPERVISOR DE SERPA.

- HI, THANK YOU VERY MUCH FOR THIS REPORT.

I... IN PART- I APPRECIATE A LOT OF THINGS, BUT IN PARTICULAR, IT'S VERY INTERESTING TO SEE ALL THE DATES IN THE LAST YEAR.

I THINK IT'S JUST THE LAST YEAR, RIGHT? - CORRECT.

- THAT SOME OF THIS EQUIPMENT THAT YOU USE HAS BEEN DEPLOYED BOTH IN TRAINING AND THEN IN REAL LIFE SITUATIONS WHERE THERE WAS A DANGER TO CITIZENS OR TO YOURSELVES.

[04:00:02]

I THINK SOMETIMES PEOPLE GET SORT OF IMMUNE TO WHAT THEY SEE ON THE NEWS OR WHAT THEY SEE ON SOCIAL AND THERE'S SO MUCH MORE THAT ACTUALLY HAPPENS BEHIND THE SCENES THAT NOBODY REALLY HEARS ABOUT.

LIKE I WAS SURPRISED TO SEE THE PEPPER BALL IN THE JAIL, BUT I ALSO KNOW THAT THERE HAVE BEEN SEVERAL ATTACKS IN THE JAIL WHERE WE'VE ACTUALLY HAD STAFF TERRIBLY INJURED AS A RESULT OF THOSE ATTACKS.

SO I DO UNDERSTAND THE NEED FOR THIS.

I WANT TO THANK ALSO THE SHERIFF AND YOURSELVES FOR MEETING WITH THE ACLU AND BEING RESPONSIVE TO THEIR CONCERNS.

AGAIN, LISTING OUT THE AR-15S.

I THINK THAT WAS HELPFUL TO THE CONCERNS EXPRESSED.

AND SO AS ALWAYS APPRECIATE ALL THAT YOU DO AND ALL THE DEPUTIES THAT ARE OUT THERE PUTTING THEIR LIFE ON THE LINE EVERY DAY FOR OUR COMMUNITY.

- SUPERVISOR KOENIG? - YEAH, I ALSO JUST WANT TO EXPRESS MY GRATITUDE.

I MEAN, THIS IS, I THINK THE FIRST TIME WE'VE HAD THIS HEARING WHEN WE DIDN'T HAVE MULTIPLE PEOPLE IN THE ROOM COMPLAINING ABOUT THE PROCESS.

AND I SAW, I THINK THE FACT THAT YOU'VE LISTED THE AR-15S AND HAD JUST BETTER OUTREACH AHEAD OF THE PUBLIC MEETING REALLY DEMONSTRATES A COMMITMENT TO CONTINUOUS IMPROVEMENT BY THE SHERIFF'S OFFICE.

AND IT SEEMS LIKE WE'VE ARRIVED AT A PRETTY GOOD PLACE.

I THINK I'M JUST GOING TO ECHO WHAT YOU'RE HEARING FROM MY COLLEAGUES.

I WANT TO REALLY APPRECIATE SHERIFF CLARK AND BOTH OF YOU AND YOUR TEAMS FOR WORKING WITH OUR COMMUNITY MEMBERS TO BE MORE TRANSPARENT AND ACCESSIBLE.

YOU KNOW, I PERSONALLY MEET WITH SHERIFF CLARK AT LEAST ONCE A MONTH, IF NOT MORE FREQUENTLY THAN THAT.

SO I GET MY QUESTIONS ANSWERED ON A REGULAR BASIS.

AND IT FEELS GOOD TO BE ABLE TO WALK THROUGH THIS COMMUNITY AND KNOW THAT OUR COMMUNITY FEELS CONFIDENT AND HAS TRUST IN THE ACTIONS OF OUR SHERIFF'S OFFICE.

SO WITH THAT, I WOULD BE HAPPY TO ACCEPT A MOTION TO MOVE THE RECOMMENDED ACTIONS.

- I'LL MOVE THE RECOMMENDED ACTIONS.

- I'LL SECOND.

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

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - CERTAINLY.

- SUPERVISOR KOENIG? - AYE.

WE'LL NOW BE MOVING ON TO ITEM NUMBER 10,

[10. Consider potential adoption of a Responsible Construction and Wage-Theft Ordinance, and take related actions]

WHICH IS TO CONSIDER THE POTENTIAL ADOPTION OF A RESPONSIBLE CONSTRUCTION AND WAGE THEFT ORDINANCE AND TAKE RELATED ACTIONS.

THIS ITEM WAS BROUGHT TO US BY 3RD DISTRICT SUPERVISOR JUSTIN CUMMINGS.

SO GO AHEAD, MR. CUMMINGS.

AND I WANT TO THANK THE BOARD MEMBERS AND MEMBERS OF THE PUBLIC FOR BEING HERE TODAY.

AND THANK...

EARLY THIS YEAR, I BEGAN HAVING CONVERSATIONS WITH CASEY VAN DEN HEUVEL, WHO'S THE CEO OF THE LOCAL BUILDING TRADES COUNCIL.

AND ONE OF THE THINGS HE BROUGHT TO MY ATTENTION WAS THE PREVALENCE OF WAGE THEFT THAT OCCURS WITHIN THE CONSTRUCTION INDUSTRY AND THE EFFORTS THE LOCAL JURISDICTIONS HAVE BEEN TAKING TO TRY TO COMBAT AGAINST WAGE THEFT.

THERE'S JURISDICTIONS UP AND DOWN THE STATE OF CALIFORNIA WHERE THIS HAS BEEN PREVALENT, AND LOCAL JURISDICTIONS HAVE BEEN TAKING PROACTIVE EFFORTS TO TRY TO ENSURE THAT WHEN THEY ARE CONTRACTING WITH CONTRACTORS OR WHEN CONTRACTORS ARE COMING IN TO DO WORK IN THE COMMUNITY, THAT THEY ARE IDENTIFYING PEOPLE WHO HAVE CASES OF WAGE THEFT AGAINST THEM OR WHO'VE BEEN ENGAGED IN WAGE THEFT IN THE PAST TO ENSURE THAT WE KNOW WHO THESE INDIVIDUALS ARE AND SO THAT WE PROMOTE GOOD CONTRACTORS WHO DON'T ENGAGE IN WAGE THEFT, ENSURING THAT THE WAGES OF WORKERS ARE GOING TO WORKERS.

AND SO WITH THAT, CASEY VAN DEN HEUVEL, I THINK, IS IN THE AUDIENCE.

HE IS GOING TO BE KICKING OFF THIS PRESENTATION.

SO I'D LIKE TO INVITE UP CASEY.

HE'S IN THE ROOM SO THAT HE CAN LEAD THE PRESENTATION TODAY.

- WELCOME.

[PAUSE] [RUSTLES] - GOOD DAY, BOARD.

THANK YOU FOR HAVING ME TODAY.

AND IN REFERENCE TO JUSTIN, I ALSO WANT TO INTRODUCE MY COLLEAGUE, DAVID VINSON.

DAVID VINSON, YOU WANT TO INTRODUCE YOURSELF? - MY NAME'S DAVID VINSON.

I WORK FOR SHEET METAL WORKERS LOCAL 104.

I'M THE DIRECTOR OF LABOR COMPLIANCE.

- ALL RIGHT, LET'S KICK IT OFF INTO THE PRESENTATION.

AND I JUST WANT TO SAY WAGE THEFT, IT REACHES, HAS NO END, AND IT AFFECTS EVERYBODY IN OUR COMMUNITY AND NOT JUST THE WORKERS, BUT OUR FAMILIES THAT ARE IN THIS COMMUNITY.

[04:05:02]

CALIFORNIA'S WAGE THEFT UNDER CURRENT LAWS HAS NO CONSISTENT MECHANISM TO STOP CONTRACTORS WITH REPEATED SERIOUS VIOLATIONS, ALLOWING THE SAME CONTRACTORS TO CYCLE THROUGH WITHOUT MEANINGFUL CONSEQUENCES.

THE PURPOSE OF THIS ORDINANCE IS TO SEEK TO REMEDY THAT PROBLEM.

WITH ONE IN SIX WORKERS AFFECTED, BILLIONS LOST, AND 2% BEING PAID BACK, THIS AFFECTS NOT JUST WORKERS AND COMMUNITIES, BUT MOST IMPORTANTLY, THEIR FAMILIES.

[PAUSE] THE COUNTY HAS STEPPED UP WITH A PROJECT LABOR AGREEMENT, BUT THAT ONLY, BUT ONLY 10 PROJECTS ARE COVERED AND HAVE WORKER PROTECTIONS.

OTHER PUBLIC AND MANY PRIVATE PROJECTS WILL NOT BE COVERED.

THE LOCAL...

LOCALLY, WE HAVE IDENTIFIED IN THE LAST COUPLE OF YEARS, MILLIONS OF WAGE VIOLATIONS THAT HAVE BEEN IDENTIFIED, AND THAT IS JUST THE TIP OF THE ICEBERG.

WHEN IT COMES TO THIS PROBLEM, THE COUNTY HAS TO TAKE ACTION, BUT WITHOUT SAFEGUARDS AND NON-RESPONSIBLE CONTRACTORS CAN AND WILL BE AWARDED WORK RECEIVING TAXPAYER DOLLARS.

THESE ARE SOME EXAMPLES OF WHAT YOU WOULD SEE WITH WHAT CIVIL WAGE AND PENALTY ASSESSMENTS.

CONTRACTORS LIKE OVG CONSTRUCTION, $300,000 AND UNDERPAID WORKERS, MELGAR MECHANICAL, $500,000 AND LOST WAGES WORKING HERE LOCALLY, HAS BEEN INDICTED ALSO EIGHT DIFFERENT TIMES FOR FELONY INSURANCE FRAUD FOR NOT REPORTING WORKERS.

ANOTHER ONE I'D LIKE TO HIGHLIGHT JUST DOWN THE STREET ON THE OCEAN STREET APARTMENT COMPLEX, GRANT CONSTRUCTION, SUBCONTRACTOR, $800,000 IN UNDERPAID WORKERS.

AND THESE ARE JUST PROJECTS THAT WE'VE BEEN ABLE TO FIND AND IDENTIFY THAT WORKERS ARE BRAVE ENOUGH TO COME FORWARD ON.

IMAGINE ALL OF THE OTHER WORKERS THAT ARE NOT COMING FORWARD.

AND A MAJORITY OF THESE NON-RESPONSIBLE CONTRACTORS OR LOW-ROW CONTRACTORS UTILIZE IMMIGRANT LABOR, AND THAT IMMIGRANT LABOR IS EVEN MORE HESITANT TO COME FORWARD TO REPORT WAGE VIOLATIONS.

THIS REPRESENTS MILLIONS OF DOLLARS IN WAGE THEFT VIOLATIONS ON PAPER.

IMAGINE WHAT IT LOOKS LIKE OFF PAPER TO THE WORKING FAMILIES IN THIS COMMUNITY AND AROUND US.

[PAUSE] LOCAL CONTROL IS WHAT'S REALLY GOING TO MAKE THE DIFFERENCE IN THIS COMMUNITY.

YOUR LEADERSHIP CAN MAKE SURE WORKERS GET PAID CORRECTLY AND NOT JUST THE DEVELOPERS.

THERE SHOULD BE ACCOUNTABILITY HERE WHERE YOUR LEADERSHIP CAN ENSURE THAT ONLY CONTRACTORS WITH RECENT EVIDENCE OF WAGE THEFT CAN BENEFIT FROM OUR LOCAL TAXPAYER DOLLARS.

WE CAN STOP THAT.

THE COUNTY IS NOW CONSIDERING A SIMPLE PROACTIVE STANDARD.

CONTRACTORS SIMPLY VERIFY THEY HAVE NO JUDGMENTS OVER $10,000 AT THE START OF A PROJECT AND AT THE END OF A PROJECT.

APPLIES TO PROJECTS REQUIRING COUNTY PERMITS, AND WE'VE ALREADY WORKED ON EXCEPTIONS, EXEMPTIONS OF THIS WHEN WE HAVE BEEN WORKING WITH STAFF BEFORE WE HAVE GOTTEN HERE TODAY.

IN THE SHORT WEEKS THAT WE HAVE BEEN WORKING WITH STAFF, IT IS AMAZING THAT WE'VE BEEN ABLE TO PROGRESS TO WHAT WE'VE ALREADY COME UP WITH THE FIRST DRAFT YOU SEE IN YOUR AGENDA PACKET.

[PAUSE] [PAUSE] [RUSTLES] [RUSTLES] EASY TO IMPLEMENT IS ONE OF THE EASIEST THINGS ABOUT THIS.

IT'S MINIMAL BURDEN TO STAFF.

IT'S A ONE-PAGE VERIFICATION WHERE DEVELOPERS SIMPLY SAY, "WE WERE GOING TO...

WE ARE GOING TO HIRE HONEST CONTRACTORS." IT'S APPLIED TO THE PUBLIC WORKS DOCUMENTS AND A PERMIT APPLICATION.

THERE'S NO INVESTIGATION REQUIRED BY STAFF.

VERIFICATION IS HANDLED EXTERNALLY.

AND WE'RE GOING TO BE USING THE EXISTING PROCESSES AND BIDS AND PERMITS

[04:10:02]

TO IMPLEMENT THIS.

[PAUSE] [RUSTLES] [RUSTLES] THE COUNTY IS BUILDING A BASIC REASONABLE STANDARD.

DEVELOPERS AND GCS KNOW THE BAD ACTORS, BUT THE REASON WHY THEY USE THESE BAD ACTORS IS BECAUSE IT'S SO ENTICING TO TAKE A LOWER BID.

WHEN THE STATE IS NOT ENFORCING THESE RULES AND THEY CAN KICK THE CAN DOWN THE ROAD, WHY NOT? IT LEVELS THE PLAYING FIELD.

AND THE ONLY THING THIS REALLY DOES IS PROMOTE HONEST CONTRACTORS.

YOU KNOW, WHEN I HEAR THINGS THAT SAY, YOU KNOW, "OH, WE NEED THESE CONTRACTORS." THAT IS A FARCE.

DO WE REALLY NEED LOW ROAD CONTRACTORS TO BUILD IN OUR COMMUNITY? BECAUSE THOSE HONEST CONTRACTORS ARE BEING PUSHED OUT.

THE BOTTOM LINE, OTHERS HAVE FAILED WORKERS TO PROTECT WORKERS AND HONEST CONTRACTORS, BUT THIS LEADERSHIP DOES NOT HAVE TO.

IT'S SIMPLE, IT'S ENFORCEABLE, IT'S A LOCAL SOLUTION.

SO I ASK YOU TODAY TO APPROVE THE RECOMMENDED ACTIONS, CONSIDER ESTABLISHING THIS ORDINANCE, DIRECT STAFF TO CONTINUE WORKING ON DRAFTING THE ORDINANCE WITH THE BUILDING AND CONSTRUCTION TRADES, AND TO BRING BACK THE BOARD FOR CONSIDERATION.

DIRECT THE CLERK OF THE BOARD TO PLACE THE ORDINANCE ON THE AGENDA FOR THE FIRST READING, NO LATER THAN THE SECOND MEETING OF SEPTEMBER.

AND I'M CONFIDENT WE WOULD HAVE AN AMAZING ORDINANCE TO BRING TO YOU JUST IN THE SHORT TIME THAT WE'VE HAD GREAT PROGRESSION WITH STAFF ON THE EDITS.

THE TIME IS NOW TO STAND UP AND LEAD.

THE MOMENT TO CREATE CHANGE IS HERE.

WILL YOU? THANK YOU.

- THANK YOU, CASEY.

AND I WILL JUST RECOMMEND, TOO, THAT THERE ARE, FOR EXAMPLE, ON CALMATTERS PAGE, YOU CAN LOOK UP WAGE THEFT, AND THEY HAVE AN ENTIRE SERIES CALLED UNPAID WAGES, A WAITING GAME ABOUT THE WAGE THEFT ISSUE HERE IN THE STATE OF CALIFORNIA.

THERE'S EVIDENCE THAT THIS HAS BEEN OCCURRING IN OUR COMMUNITY.

AND WITH THE BOARD'S COMMITMENT TO TRYING TO SUPPORT WORKING FAMILIES, TO ENSURE THAT PEOPLE ARE ABLE TO LIVE IN THIS COMMUNITY AND WORK IN THIS COMMUNITY, IT MAKES SENSE THAT WE MOVE FORWARD WITH TRYING TO FIGURE OUT WHAT IS AN ORDINANCE THAT CAN WORK WITH OUR COMMUNITY.

AND THAT'S WHY WE'VE BROUGHT THIS FORWARD TODAY.

WE'VE HAD PRELIMINARY MEETINGS WITH STAFF.

I MEAN, AS CASEY HAS MENTIONED, THOSE CONVERSATIONS HAVE BEEN PRODUCTIVE.

WE'VE EXTENDED OUT THE TIMELINE TO SEPTEMBER BECAUSE WE KNOW BETWEEN THE BUDGET AND OTHER ISSUES THAT THERE'S NEED FOR SOME FLEXIBILITY AROUND WHEN THIS COMES BACK.

BUT WE'RE PRETTY CONFIDENT THAT SOMETHING CAN COME BACK THAT'S REALLY GOING TO HELP ADDRESS THESE ISSUES IN OUR COMMUNITY AND BRING, YOU KNOW, I WOULDN'T SAY TRANSPARENCY, BUT TRANSPARENCY AROUND WHETHER THIS... HOW FREQUENTLY THIS IS OCCURRING.

AND MY HOPE IS THAT BY PUTTING SOMETHING LIKE THIS IN PLACE, WE CAN DETER BAD BEHAVIOR, ENSURE THAT WORKERS ARE GETTING PAID THEIR FAIR WAGES AND THE WAGES THAT THEY DESERVE, AND THAT THIS WILL NOT BE A BURDEN ON COUNTY STAFF.

I ALSO DO WANT TO SAY THAT HAVING OTHER CONVERSATIONS WITH FOLKS IN THE COMMUNITY, THERE ARE PEOPLE IN THE SERVICE INDUSTRY WHO'VE EXPRESSED ISSUES AROUND WAGE THEFT.

AND I'M HOPING THAT AS WE CONTINUE TO WORK THROUGH THESE ISSUES AROUND WAGE THEFT, WE CAN START NOT ONLY ADDRESSING IT IN THE CONSTRUCTION FIELD, BUT IN ALL FIELDS SO THAT WE ENSURE THAT PEOPLE ARE GETTING THE WAGES THAT THEY DESERVE AND THAT THEY'VE EARNED.

SO THANK YOU FOR YOUR TIME.

I'M HAPPY TO...

I THINK CASEY AND I ARE HAPPY TO ANSWER ANY QUESTIONS OR TAKE THIS OUT FOR PUBLIC COMMENT.

I'LL NOW RETURN TO THE BOARD FOR QUESTIONS FOR OUR PRESENTERS.

SUPERVISOR KOENIG.

THANK YOU, MR. VAN DEN HEUVEL.

THANK YOU FOR THE PRESENTATION.

THANK YOU, SUPERVISOR CUMMINGS.

I REALLY APPRECIATE YOU BUILDING...

BRINGING THIS TO OUR ATTENTION AND ALSO PROVIDING A SOLUTION.

YOU KNOW, SO OFTEN WE HEAR CONCERNS OR COMPLAINTS IN OUR OFFICES, BUT A LOT OF TIME WHEN WE ASK PEOPLE WHAT WE SHOULD DO ABOUT IT, THEY DON'T...

WE DON'T KNOW.

YOU FIGURE IT OUT.

SO I APPRECIATE THAT YOU'RE PROVIDING US AN OPTION HERE.

AND, YOU KNOW, ABSOLUTELY, WAGE THEFT IS TERRIBLE.

[04:15:01]

I MEAN, IT'S BAD ENOUGH TO, FOR EVERYONE TO AFFORD THE RISING COST OF LIVING IN OUR COMMUNITY.

AND SIMPLY PUT, PEOPLE SHOULD BE PAID WHAT THEY'RE OWED AND FOR THE WORK THAT THEY'VE DONE.

DO YOU WANTED TO JUST GET A LITTLE BIT MORE GRANULAR ABOUT SOME OF THE INFORMATION YOU SHARED ABOUT WAGE THEFT IN OUR COMMUNITY? YOU MENTIONED IT WAS MILLIONS OF DOLLARS.

DO YOU HAVE AN EXACT FIGURE ON THAT? - RIGHT NOW, WHEN WE DID A LOOK BACK THE LAST RECENT YEARS WITH THE PUBLIC RECORDS REQUEST THAT WE'VE BEEN ABLE TO MAKE, IT'S WELL OVER PROBABLY...

I THINK WE LAST PUT IT AT 2.8 MILLION.

AND THAT ONLY REPRESENTS VIOLATIONS THAT HAVE HAPPENED WITHIN THE COUNTY THROUGH MULTIPLE JURISDICTIONS, RIGHT? THIS DOESN'T JUST HAPPEN WITHIN COUNTY PROJECTS OR COUNTY DEVELOPMENTS.

A LOT OF THIS HAPPENS OBVIOUSLY WITH THE LARGER CITIES, RIGHT? AND THAT JUST REPRESENTS VIOLATIONS HERE LOCALLY IN THE LAST COUPLE OF YEARS.

THAT DOESN'T EVEN INCLUDE THE CONTRACTORS WITH HUNDREDS OF THOUSANDS OF VIOLATIONS OR MILLIONS, EVEN MORE THAN ARE VIOLATED IN OTHER AREAS THAT ARE NOW WORKING HERE BECAUSE THEY'VE BEEN CHASED OUT OF OTHER AREAS WITH RESPONSIBLE CONTRACTING ORDINANCES OR PROJECT LABOR AGREEMENTS.

- OKAY, THANK YOU, YEAH.

AND YOU DID SHARE A MORE GRANULAR LIST AROUND THAT $2.8 MILLION.

SO THANK YOU, I APPRECIATE THAT.

IN LOOKING AT THE LIST, IT LOOKED LIKE THE MAJORITY OF THOSE JUDGMENTS WERE AGAINST ONE BAD ACTOR, WHICH IS PACIFIC WEST BUILDERS, DBA, IDAHO PACIFIC WEST BUILDERS.

SO OF THE $2.88 MILLION, THEY WERE RESPONSIBLE FOR $2.27 MILLION OF THAT.

SO 77%, ALMOST 78%.

- IS THAT RIGHT? - SO I CAN, I CAN'T INDEPENDENT...

OR I CAN'T VERIFY THAT NUMBER RIGHT NOW, BUT I KNOW I WILL SPEAK TO...

ESSENTIALLY THESE NUMBERS JUST CAME FROM TWO TRADES.

ANOTHER REPRESENTATIVE THAT'S IN THIS ROOM AS WELL.

AND SO IT'S REALLY JUST BEEN TWO TRADES, YOU KNOW, LOOKING BACK THE LAST ABOUT THREE YEARS FOR THE CIVIL WAGE AND PENALTY ASSESSMENTS THAT HAVE BEEN ADJUDICATED BY THE STATE LABOR COMMISSIONER'S OFFICE.

AND SO WE'RE...

OF THE 300,000 PLUS, YOU KNOW, CONTRACTORS WITHIN THE STATE, WE'RE ONLY REALLY LOOKING AT, YOU KNOW, THE SHEET METAL AND THE OPERATING ENGINEERS.

WHEN WE WERE COMPILING THIS VERY SMALL LIST, IT WAS NOT THE TOTALITY OF ALL JUDGMENTS THAT HAD BEEN FILED FOR WAGE THEFT AND OR WORKER MISCLASSIFICATION WITHIN THE COUNTY.

- OKAY. SO OBVIOUSLY THERE'S OPPORTUNITY FOR MORE COMPREHENSIVE RESEARCH.

THAT'S GREAT.

BUT IN ANY CASE, FOR THE DATA THAT WE DO HAVE BEFORE US TODAY, IT'S ABOUT 78% FROM THIS ONE BAD ACTOR.

AND IT WAS AS, AS NOTED ON A PROJECT THAT'S IN THE CITY OF SANTA CRUZ, WHICH IS THE OCEAN STREET APARTMENTS.

DOES...

THIS COUNTY OF SANTA CRUZ DOES SHOW UP A FEW TIMES ON THERE FOR TOTAL WAGE THEFT OR WORKING WITH CONTRACTORS THAT COMBINED HAVE TOTAL WAGE THEFT VIOLATIONS OF $45,552.

SO, YOU KNOW, STILL A MEANINGFUL AMOUNT, BUT SIGNIFICANTLY LESS THAN I THINK THE OVERALL NUMBER CLAIMED.

SO I CLEARLY WE DO HAVE AN OPPORTUNITY TO TIGHTEN UP THE PROCESS THERE.

AND THIS IS ABOUT THE DATA SHARED, IF I UNDERSTAND CORRECTLY, WAS ABOUT OVER LIKE A FIVE YEAR LOOK BACK.

IS THAT GENERALLY WHAT WAS...

- CORRECT.

- GREAT.

AND I UNDERSTAND THERE MIGHT ALSO BE A SITUATION WITH A SUBCONTRACTOR WORKING ON THE JUVENILE HALL PROJECT TODAY THAT HAS SOME WAGE THEFT JUDGMENTS AGAINST THEM.

SO I THINK THERE MIGHT ALSO BE OPPORTUNITIES TO TIGHTEN UP OUR PROCESS WITH SUB TO EXTEND TO SUBCONTRACTORS AND NOT JUST CONTRACTORS ON COUNTY PROJECTS.

[PAUSE] BUT YEAH, THAT'S ALL MY QUESTIONS.

SO THANK YOU. - YEAH.

THAT'S WHY WE NEED TO FIX THAT SALES TAX AND PROPERTY TAXES.

SO YOU GUYS CAN GET SOME MORE MONEY TO BUILD THOSE PROJECTS.

- YEAH.

- FURTHER QUESTIONS? SUPERVISOR DE SERPA.

THANK YOU FOR THE PRESENTATION TODAY.

SO THERE ON SOME OF THE SLIDES, I HAVE A COUPLE OF QUESTIONS BECAUSE YOU KNOW, WE'RE IN A BUDGET CRUNCH RIGHT NOW, AND MAYBE OVER THE NEXT FEW YEARS. - RIGHT.

- LOOKING FORWARD TO THE MAY REVISE.

BUT I SEE THAT THERE, THERE WAS A BULLET POINT THAT SAID LIKE NO INTERNAL ENFORCEMENT OR EXTERNAL ENFORCEMENT, LIKE CAN YOU TALK...

- EXTERNAL VERIFICATION.

- VERIFICATION. - RIGHT.

- SO TALK TO ME ABOUT WHAT THIS LOOKS LIKE ACTUALLY IN PRACTICE.

- SURE.

- SO THANK YOU.

I'LL START THE ANSWER TO THAT QUESTION.

AND THERE'VE BEEN ANOTHER, A NUMBER OF OTHER MUNICIPALITIES AND COUNTIES THAT HAVE FAIRLY SIMILAR ORDINANCES

[04:20:01]

THAT ARE ALREADY ON THE BOOKS.

THE COUNTY OF SAN FRANCISCO, THE COUNTY OF SAN MATEO, CITIES OF SUNNYVALE, MOUNTAIN VIEW, I COULD GO ON, BUT YOU KNOW, WHERE IT'S WORKED IN THOSE AREAS AND WHERE IT HAS NOT BEEN A BURDEN ON STAFF IS ESSENTIALLY IT PUTS THE OTHER CONTRACTORS IN THE SEAT OF BEING THE ONES THAT FILE THESE FOR LACK OF A BETTER TERM COMPLAINTS AGAINST SOME OF THEIR COMPETITORS.

YOU KNOW, EVERYBODY IS LOOKING TO BE THE LOWER BIDDER ON THESE PROJECTS.

AND YOU KNOW, THAT'S HOW 90 PLUS PERCENT OF PUBLIC WORKS, YOU KNOW, CONTRACTS ARE BID WHERE THIS IS PROBABLY GOING TO BE THE LARGEST, YOU KNOW, THE LARGER SIDE OF THE ENFORCEMENT MECHANISM.

AND SO ESSENTIALLY THE CONTRACTORS ARE THE ONES LOOKING OUT FOR IT.

WE'RE NOT ASKING STAFF TO BE INDEPENDENT, INDEPENDENTLY VERIFY THE ASSERTIONS OF OTHER CONTRACTORS, BUT YOU KNOW, IF THERE'S A CONTRACTOR THAT'S IN MY WHEELHOUSE AND I'M A PAINTER AND I KNOW OF ANOTHER CONTRACTOR, YOU KNOW, ABC PAINTING THAT HAS ALL SORTS OF VIOLATIONS AND, YOU KNOW, MYSELF OR A LABOR UNION THAT I WORK WITH, OR A THIRD PARTY COMPLIANCE GROUP IS, YOU KNOW, FOUND AGAINST THEM.

THEY CAN BRING THAT EVIDENCE FORWARD.

AND THEN IT WOULD JUST BE FOR STAFF TO CONFIRM THAT WITH THE LABOR COMMISSIONER'S OFFICE.

AND SO THE INVESTIGATION PORTION IN THOSE OTHER COUNTIES AND MUNICIPALITIES THAT I MENTIONED IS ALL HANDLED EXTERNALLY BY, YOU KNOW, GOOD GOVERNMENT GROUPS BY CITIZENS AND... BUT FOR THE MOST PART BY OTHER CONTRACTORS.

- SO THEY WOULD HAND OVER SOMETHING LIKE THIS, KIM, AND ON THERE, IT HAS THE DEPUTY COMMISSIONER'S WORK PHONE NUMBER AND ALSO THEIR EMAIL.

SO THEY COULD EASILY JUST SEND THIS AND SAY, "COULD YOU PLEASE VERIFY THIS COMPLAINT?" THAT WOULD BE THE ONLY THING THAT THEY'D HAVE TO DO VERIFYING THIS AND FINDING THIS IS GOING TO BE EXTERNAL.

- AND THEN WITH THE COUNTY HOLD MASTER LIST OF LIKE BAD PLAYERS.

- I MEAN, IT WOULD BE GOOD FOR THEM TO HOLD A MASTER LIST OF BAD PLAYERS JUST IN CASE THEY SEE THEM POP UP AGAIN.

AND SO WE'D BE SUBMITTING AS MANY AS WE CAN JUST SO THEY HAVE THAT AS RECORD.

- RIGHT.

RIGHT.

SO WE COULD IDENTIFY THOSE BEFORE THEY EVEN GET APPROVED AND ONTO THE PROJECT.

- OKAY, SO THIS IS...

THIS IS KIND OF A WEIRD QUESTION, BUT WOULD THIS COMPET- SORT OF COMPETITION? BECAUSE PEOPLE ARE BITTY AGAINST EACH OTHER ALL THE TIME.

I MEAN, THERE COULD BE BAD ACTORS WHO DECIDE TO TURN IN SOMEBODY THAT...

DO YOU KNOW WHAT...

DO YOU KNOW WHAT I'M SAYING? - YEAH, SO, I MEAN, IT'S...

- SO HOW DO YOU GUARD AGAINST, AGAINST LIKE THAT HAPPENING? - GUARD AGAINST...

- SO I CAN SPEAK TO THAT AS WELL.

SO, I MEAN, THERE'S AN ALLEGATION OR AN ACCUSATION BY ITSELF IS MEANINGLESS.

I MEAN, THERE'S THE DUE PROCESS REQUIREMENTS THAT THE STATE HAS TO ABIDE BY, WHETHER IT'S THE LABOR COMMISSIONER'S OFFICE OR A PRIVATE RIGHT OF ACTION, YOU KNOW, THERE'S NOTICE IN HEARING BEFORE ANY SORT OF, WHETHER IT'S A CIVIL WAGE AND PENALTY ASSESSMENT OR SOME SORT OF LAWSUIT IS FILED.

AND SO AN ALLEGATION BY ITSELF IS GOING TO BE MEANINGLESS.

OTHERWISE I WOULD WORRY ABOUT THAT.

BUT WHEN THE DEPUTY LABOR COMMISSIONERS, YOU KNOW, IN SACRAMENTO OR SPREAD THROUGHOUT THE STATE HAVE INVESTIGATED A CLAIM THAT'S MADE BY...

WHETHER IT'S A MEMBER OF THE PUBLIC, AN EMPLOYEE, OR EVEN A COMPETITOR, IF THEY HAVE FOUND MERIT TO THOSE ACCUSATIONS AND THEN FIND THAT A CONTRACTOR HAS, YOU KNOW, STOLEN MONEY FROM ITS EMPLOYEES, THEN I THINK THAT, THAT YOU KNOW, WE SHOULD TAKE INTO ACCOUNT THAT THAT FINDING.

CAN I CALL MATT MACHADO UP TO THE PODIUM? I HATE TO PUT YOU ON THE SPOT, MATT, BUT MATT, YOU'VE WORKED IN OTHER COMMUNITIES.

HAVE YOU WORKED IN A COMMUNITY THAT HAS THIS TYPE OF ORDINANCE BEFORE? - GOOD AFTERNOON, I'M MATT MACHADO, CDI DIRECTOR.

NO, I HAVEN'T.

I MEAN, TO BE FAIR.

- HIS MIC IS MUTED, BY THE WAY.

- IT IS? [INAUDIBLE] - IT'S NOT COMING THROUGH ONLINE.

- OKAY, ONE... OH, THERE WE GO.

ALL RIGHT, HOW'S THAT? BETTER NOW.

ALL RIGHT, WELL, GOOD AFTERNOON, MATT MACHADO, CDI DIRECTOR.

TO BE FAIR, THIS IS MY THIRD PUBLIC AGENCY I'VE BEEN IN, AND I AM NOT AWARE OF THIS TYPE OF ORDINANCE OR PROVISION IN LOCAL AGENCIES.

SO THIS IS A NEW ONE FOR ME, BUT I ALSO COULD SEE THE, YOU KNOW, THE STATE TREND OF MAYBE DIFFICULT ENFORCEMENT, LACK OF ENFORCEMENT.

SO IT SEEMS LIKE THAT REALLY OPENED MY EYES TO SEE THE STATE PROBLEM OF ENFORCEMENT.

SO MAYBE THAT'S RELATIVELY NEW OVER THE PAST, YOU KNOW, COUPLE OF DECADES.

- SO THERE ARE ALREADY... HELP ME UNDERSTAND.

THERE ARE ALREADY LAWS ON THE BOOKS, STRICT LAWS ABOUT THIS.

- MM-HMM. - AND THE ISSUE AND THE PROBLEM THAT YOU'RE BRINGING FORWARD IS THAT THE STATE DOESN'T HAVE THE PRIORITY OR THE STAFFING...

- CORRECT. - ...TO DO THE ENFORCEMENT.

- CORRECT.

[04:25:01]

SO THERE WAS A RECENT AUDIT DONE FROM THE STATE AUDITOR ON THE LABOR'S COMMISSIONER'S OFFICE.

AND IN THAT AUDIT, AND THIS WAS PUBLISHED IN MAY OF 2024, IT BASICALLY PUT TOGETHER A 70-PAGE SKEEZING AUDIT OUTLINING ALL OF THE FAILURES FROM THAT OFFICE TO ENFORCE THESE LAWS.

YOU KNOW, THEY'RE SUPPOSED TO BE SEEN, LET'S SAY, IF YOU BRING THIS FORWARD AS, YOU KNOW, EVIDENCE OF WAGE THEFT SEEN WITHIN 135 DAYS AND HAVE A JUDGMENT.

NOW THAT IS CURRENTLY UP TO CLOSE TO 900 DAYS.

AND OF THOSE 900 DAYS, WHEN IT FINALLY GETS THERE, LET'S JUST SAY THEY DO A CIVIL WAGE AND PENALTY ASSESSMENT.

THE STATE SAID ONLY AROUND 12% OF WORKERS EVER RECEIVE THE MONEY.

AND THERE'S ALSO IN 2024, THERE WAS A CLOSE TO 50,000 CASE BACKLOG.

AND SO WHEN THESE PENALTY ASSESSMENTS COME UP, THEY CAN BE KICKED DOWN THE ROAD FOR YEARS AND YEARS.

AND THEN YOU HAVE TO RELY ON THE STATE TO COORDINATE BETWEEN MULTIPLE DEPARTMENTS BEFORE THEY EVER SEEK PUNITIVE DAMAGES.

SO WHEN A CONTRACTOR LIKE GRANT OR OVG OR MELGARD, FOR INSTANCE, THEY'RE STILL BE AWARDING PROJECTS AS THEY KICK DOWN THESE PENALTIES AND VIOLATIONS DOWN THE ROAD, DOWN THE ROAD, DOWN THE ROAD.

THAT'S WHY YOU'VE RECENTLY SEEN MELGAR MECHANICAL, NOT ONLY TWO OF THE LARGEST PROJECTS HERE LOCALLY, BUT THEN JUST WAS NOW AWARDED THE DOWNTOWN LIBRARY PROJECT.

- SO...

- IF I CAN JUST ADD REALLY QUICKLY ONTO THAT, I... IT'S LESS ABOUT, YOU KNOW, THE BACKLOG WITHIN THE STATE AND MORE ABOUT THE IMPUNITY WITH WHICH THESE CONTRACTORS THAT, YOU KNOW, EVEN ONLINE, YOU CAN FIND UNPAID JUDGMENTS AND LESS THAN UNTIL THEIR LICENSE IS TAKEN.

AND THERE'S ONLY BEEN, I BELIEVE, 55 LICENSES TAKEN AWAY OF THE 300,000 IN THE LAST 16 YEARS.

AND SO, YOU KNOW, WITHOUT THEIR LICENSE BEING TAKEN AWAY, THERE'S REALLY NOTHING STOPPING THEM FROM, YOU KNOW, CONTINUING TO BID AND OCCASIONALLY, YOU KNOW, BIDDING ON PROJECTS THAT ARE FUNDED BY TAXPAYER DOLLARS... - MM-HMM.

- ...AND EVEN WHEN NOT, YOU KNOW, HAVING...

YOU KNOW, MUNICIPALITIES AND OR COUNTIES PROVIDE THE PERMITS FOR THOSE PROJECTS.

AND SO IT'S JUST ANOTHER SAFEGUARD BECAUSE YOU SPOKE ABOUT THE LAWS.

I PROMISE I'LL BE VERY SUCCINCT HERE.

THE ONE THAT'S ON THE BOOKS IS IN THE PUBLIC CONTRACT CODE ABOUT RESPONSIBILITY AND PUBLIC AGENCIES CANNOT AWARD TO A RESPONSIBLE CONTRACTOR, BUT IT'S UP TO THE MUNICIPALITIES AND THE PUBLIC AGENCIES THEMSELVES TO DEFINE WHAT RESPONSIBILITY MEANS.

AND THAT'S SOMETHING THAT THIS ORDINANCE HELPS TO DO.

- SO, YOU KNOW, I WORKED IN A...

OR I WAS ON THE BOARD OF A SCHOOL DISTRICT AND OFTENTIMES LIKE EVEN WITH A BOND IN PLACE, YOU KNOW, WE WOULD HAVE PROJECTS THAT NEED, YOU KNOW, FOOTBALL FIELDS AND PERFORMING ARTS CENTERS AND THIS AND THAT.

BUT WE HAD A REALLY HARD TIME ATTRACTING ANY BIDDERS LIKE THERE WERE SOMETIMES ONE OR WE WOULD HAVE TO REPOST IT OR WHATEVER, YOU KNOW, BECAUSE WE DIDN'T GET ENOUGH BIDS THE FIRST TIME.

ONE OF THE THINGS THAT I AM WORRIED ABOUT IS THAT THIS MIGHT HAVE A CHILLING EFFECT ON BEING ABLE TO ATTRACT DEVELOPERS.

WE'RE ALREADY HAVING THAT RIGHT NOW.

WE'VE GOT SEVERAL PROJECTS THAT WE NEED TO GET OFF THE GROUND AND WE DON'T HAVE A LOT OF DEVELOPERS BIDDING ON THAT.

AND THAT'S NOT MONEY.

THAT'S NOT LIKE COUNTY MONEY.

THEY'RE NOT COUNTY PROJECTS OR JUST OTHER PROJECTS.

CAN YOU TALK A LITTLE BIT ABOUT MY CONCERN AROUND THAT? - I DEFINITELY HEAR YOUR CONCERN ON THAT.

AND I WOULD SAY WHEN YOU THINK OF YOURSELF AS A HONEST CONTRACTOR, KIM, AND LET'S SAY I AM A NON-HONEST CONTRACTOR AND YOU SEE THAT I'M ON THAT BID LIST.

ARE YOU GOING TO SPEND UPWARDS OF A MONTH AND UPWARDS OF 160 TO 200 HOURS TO SPEND ON AN EMPLOYEE TO BID THAT CONTRACT? KNOWING THAT ME AS A NON-HONEST CONTRACTOR IS MOST LIKELY GOING TO UNCOUNTERCUT YOU? ARE YOU GOING TO GO BID IN AREAS WHERE YOU KNOW AS AN HONEST CONTRACTOR YOU'RE GOING TO HAVE A GOOD CHANCE TO BE AWARDED THAT PROJECT? [PAUSE] - YEAH.

YES, I GET WHAT YOU'RE SAYING.

I AM CONCERNED THOUGH.

LET ME ASK MAYBE ONE MORE QUESTION IF I CAN.

[STUTTERING] BECAUSE I READ ALL THE BACKUPS.

SO THANK YOU VERY MUCH.

AND EVERYTHING THAT YOU'VE SENT ME, CASEY, I'VE READ IT.

ARE WE TALKING ABOUT BIG PROJECTS AND LITTLE PROJECTS? LIKE, ARE WE TALKING ABOUT...

BECAUSE IT LOOKS LIKE REGULAR CONTRACTORS THAT ARE GOING TO BE DOING LIKE A HOUSE PROJECT,

[04:30:01]

LIKE A REMODEL...

- NO, NO. - ...ARE ALSO INCLUDED IN THIS? - NO. - NO, SO TALK TO US ABOUT THAT.

- WE'VE ALREADY...

BASED ON SOME OF THOSE COMMENTS THAT WE HEARD FROM STAFF, RIGHT? WE'VE ALREADY HAD SOME OF THOSE EXCLUSIONS IN THE CURRENT ONE UNDER SMALL BUSINESSES, RIGHT? SO WE'RE NOT AFFECTING, LET'S SAY, SOMEBODY WHO HAD THEIR HOUSE BURNT DOWN IN A FIRE AND IS TRYING TO REBUILD.

WE'RE NOT AFFECTING SOMEONE WHO'S MAYBE BUILDING AN ADU IN THEIR BACKYARD, RIGHT? WE'RE NOT AFFECTING A COFFEE SHOP WHO'S DOING A TENTATIVE IMPROVEMENT PROJECT.

WE ARE GOING AFTER THE LARGE PROJECTS WHERE A MAJORITY OF THESE WAGE THEFT ORDINANCE HAPPEN.

- ANY QUESTIONS, SUPERVISOR HERNANDEZ? - I'M NOT SURE.

- THERE'S QUESTION...

- I THINK SOME OF THE ANSWERS MIGHT HAVE BEEN ADDRESSED, BUT I'M NOT SURE.

BUT LET ME ASK IT ANYWAYS.

CAN YOU GIVE AN EXAMPLE OF THE TYPE OF VIOLATIONS THAT WE'VE HAD RECENTLY IN LIKE, LET'S SAY, THE LAST FIVE YEARS IN THIS REGION, LIKE SANTA CRUZ COUNTY, MONTEREY COUNTY, SAN BENITO? - YEAH.

- YOU DON'T HAVE TO NAME NAMES.

BUT LIKE PRESENT TIME. - SO ESSENTIALLY WHAT WE WERE LOOKING INTO IN THE SAMPLE THAT WAS PROVIDED WERE INSTANCES OF MISCLASSIFICATION OR WHERE WORKERS ARE OWED A PREVAILING WAGE AND THE CONTRACTOR DECIDES NOT TO PAY THAT.

AND I MEAN, THERE'S PLENTY OF OTHERS THAT, YOU KNOW, THERE'S ALSO, YOU KNOW, MUNICIPAL RULES ON THE BOOK AS WELL AS THE STATE'S MINIMUM WAGE.

BUT THAT'S SOMETHING THAT...

UNFORTUNATELY, WE JUST AREN'T ABLE TO TRACK AS WELL.

BUT SO, YOU KNOW, THE WAGES AND THE, YOU KNOW, $2.8 MILLION THAT WAS REFERENCED EARLIER, THOSE ARE BASICALLY WAGE UNDERPAYMENTS FROM THE PREVAILING WAGE THAT'S PUBLISHED BY THE DEPARTMENT OF INDUSTRIAL RELATIONS.

- AND HOW DO...

IS THERE LIKE A OFFICIAL LIST, THEN? HOW DOES ONE GET OFF THAT LIST? CAN THEY GET OFF THAT LIST IF THEY WANTED TO? - SO THERE'S NOT... THERE'S NOT AN OFFICIAL LIST.

I MEAN, YOU CAN MAKE A RECORDS REQUEST FROM THE LABOR COMMISSIONER'S OFFICE.

THERE IS SUPPOSED TO BE A LIST, EVEN THOUGH IT'S NOT UPDATED AS OFTEN AS IT SHOULD BE, OF CONTRACTORS WITH OUTSTANDING WAGE JUDGMENTS.

BUT AGAIN, YOU'D HAVE TO USE THE CALIFORNIA PUBLIC RECORDS ACT TO MAKE A REQUEST TO SEE IF ANY CONTRACTORS DO CURRENTLY OWE.

BUT THE WAY OF GETTING OFF OF THIS, IF YOU'RE CURRENTLY A CONTRACTOR THAT'S VIOLATIVE OF THE ORDINANCE THAT'S BEING PROPOSED, IS THAT YOU WOULD HAVE TO GO THREE YEARS WITHOUT HAVING ANOTHER JUDGMENT FOUND AGAINST YOU FOR MORE THAN $10,000 IN WAGES THAT WERE DEPRIVED FROM ONE OR MORE WORKERS.

- AND PAY YOUR PAST DEBT, TOO, OR YOUR PAST VIOLATIONS.

- YES, IF THERE IS AN OUTSTANDING WAGE DEBT, THAT WOULD HAVE TO BE SATISFIED AS WELL.

- WELL, THINKING ABOUT THIS, IT MAKES ME THINK THAT THERE'S PROBABLY LEGISLATION THAT'S GOT TO BE DONE TO MAKE THAT ACCESS TO THOSE RECORDS A LOT EASIER THAN PRAS, A DATABASE THAT ONE CAN SEARCH.

- YOU WOULD CERTAINLY THINK AND HOPE SO.

AND OBVIOUSLY, THE FUNDING WITH THE LABOR COMMISSIONER'S OFFICE.

AND RIGHT NOW, THEY'RE JUST FOCUSING ON GETTING MORE STAFF TO HANDLE THE BACKLOAD OF CASES THAT WAS MENTIONED EARLIER.

BUT YES, THEY'VE HAD A PLAN FOR PROBABLY 10, 15 YEARS ABOUT TO DIGITIZE MOST OF THESE RECORDS.

BUT UNFORTUNATELY, A LOT OF THEM ARE SITTING ON CLAY STREET IN OAKLAND AND JUST FILING FOLDERS.

- THANK YOU, WELL, I THINK SUPERVISOR DE SERPA KIND OF... HER QUESTION ANSWERED MY QUESTION THAT I HAD ABOUT LIKE HOW TO...

CAN THEY JUST BE LIKE ANOTHER COMPETITOR SAY, "HEY, YOU KNOW, YOU'VE...

I'M GOING TO CALL YOU INTO THE LABOR TO SAY THAT YOU GOT A VIOLATION OR SOMETHING." AND THAT'S THE OFFICIALS, THEY HAVE TO INVESTIGATE IT.

- YES, THERE HAVE TO BE A... WHAT'S CALLED LIKE A FINAL JUDGMENT, WHETHER THAT'S COMING FROM A COURT OF COMPETENT JURISDICTION OR FROM THE LABOR COMMISSIONER'S OFFICE.

AND AGAIN, THERE'S, YOU KNOW, THE DUE PROCESS CONCERNS THERE.

AND, YOU KNOW, SO THERE'S A NOTICE, THERE'S INVESTIGATIONS.

AND IT'S NOT JUST, "WELL, I BELIEVE THIS GUY'S STORY MORE." THEY HAVE TO MEET THE THRESHOLD, THAT'S SET BY THE STATE LEGISLATURE FOR, YOU KNOW, EVIDENCE.

YOU KNOW, AND SO, YES, IT'S NOT JUST ACCUSATIONS.

- OKAY, THANK YOU.

- THANK YOU FOR BRINGING THIS TO ALL OF US.

YEAH, TO BE HONEST, I DIDN'T REALIZE THE SCALE OF THE WAGE THEFT ISSUES OR THE BACKLOG AT THE STATE UNTIL YOU BROUGHT THIS FORWARD.

SO I REALLY APPRECIATE YOU EDUCATING US AND PROPOSING SOLUTIONS THAT COULD HELP US ADDRESS SOMETHING THAT REALLY IMPACTS A LOT OF LIVES.

I'M HOPING YOU CAN HELP ME UNDERSTAND JUST A LITTLE BIT MORE IN THE DETAIL ABOUT HOW THIS MIGHT ROLL OUT.

THE FIRST IS AROUND, I'M HEARING YOU SAY THAT AN ALLEGATION ISN'T ENOUGH TO GET SOMEBODY ON THE LIST.

IT HAS TO BE... THERE HAS TO BE A JUDGMENT.

BUT THEN ALSO THAT THE LABOR COMMISSIONER'S PROCESS COULD TAKE LIKE 900 DAYS FOR A JUDGMENT TO EVEN HAPPEN.

[04:35:02]

AND SO ON ONE HAND, IT SOUNDS LIKE WE'RE STILL RELYING ON A VERY SLOW STATE PROCESS FOR OUR OWN ORDINANCE TO BE EFFECTIVE.

IS THAT CORRECT? - SO THAT'S A GREAT QUESTION.

AND THAT'S WHY WE WON'T ACCEPT ALLEGATIONS.

AND THAT'S WHY WHEN YOU DO HAVE A CIVIL WAGE AND PENALTY ASSESSMENT AGAINST YOU, IT SHOULD BE TAKEN VERY SERIOUSLY.

- AND MORE TO YOUR POINT, TOO, WE'D LOVE TO HAVE A SIMPLER, YOU KNOW, BASELINE OR THRESHOLD.

BUT THERE'S A LOT OF FIFTH AMENDMENT CONCERNS.

IF WE SAID, YOU KNOW, ANY ALLEGATION WOULD PROHIBIT YOU FROM...

- FIRST, YEAH. - YOU KNOW, PROPERTY, RIGHT.

POTENTIAL PROPERTY, RIGHT.

- SO THEN FOR SOMEBODY TO GET THAT JUDGMENT, IT SEEMS LIKE IT'S GOT TO BE...

IT WAS LIKELY A PRETTY SERIOUS OFFENSE OR PRETTY LARGE SCALE FOR THE STATE TO EVEN NAVIGATE THE PROCESS.

SO WHEN PROPOSING THE $10,000 THRESHOLD, THAT FEELS EITHER LOW OR VERY UNLIKELY BECAUSE YOU'RE TALKING IN THE...

IN LIKE HUNDREDS OF THOUSANDS AND IN [STUTTERING] JUDGMENTS? IS THAT CORRECT? SO, HOW DID YOU COME UP WITH THE 10,000? IS IT EVEN LIKELY THAT THE LABOR COMMISSION OR WHATEVER HAVE A JUDGMENT THAT'S AS LOW AS THAT? IT'S ACTUALLY THE HIGHEST IN ANY RESPONSIBLE CONTRACTING ORDINANCE IN THE STATE OF CALIFORNIA.

AND I WOULD SAY TO THAT, THAT IT...

TO ME, A THOUSAND IS A LOT TO A SINGLE WORKER, 10,000 TO A SINGLE WORKER ON A PROJECT.

THAT'S THE DIFFERENCE BETWEEN MAKING A CAR PAYMENT.

RIGHT? PUTTING FOOD ON THE TABLE.

AND I MEAN, IF WE WOULD LIKE TO EXPLORE THE LIMITS OF THAT, I'M HAPPY TO DO WITH THAT WITH STAFF OVER THE TIME BEFORE WE BRING THIS BACK FOR THE SEPTEMBER, BUT WE COULD DEFINITELY LOOK INTO THAT.

- YEAH, I THINK MORE, IT'S MORE ABOUT EDUCATION.

BASED ON WHAT I'M LEARNING FROM YOU, I WOULDN'T HAVE TAKEN THAT THERE ARE EVEN OUR JUDGMENTS THAT ARE JUST AS LOW AS A THOUSAND DOLLARS, RIGHT? BECAUSE THESE ARE BAD ACTORS WHO ARE DOING A LOT OF BAD ACTING.

[CHUCKLES] SO THE JUDGMENTS WOULD BE MUCH, MUCH HIGHER THAN THAT.

SO THAT'S JUST AN EDUCATION.

- YEAH. - ...AND HELP US UNDERSTAND, YOU KNOW, WHERE THAT THRESHOLD COMES FROM AND HOW TO MAKE IT, YOU KNOW, MOST EFFECTIVE TO CATCH THE FOLKS WHO YOU'RE TALKING ABOUT.

HOW ABOUT YOU MIGHT NOT HAVE AN ANSWER TO THIS YET SINCE WE HAVEN'T DRAFTED A FULL ORDINANCE YET.

BUT HOW ARE YOU THINKING ABOUT PROJECTS THAT HAVE ALREADY BEEN BID AND ARE IN CONTRACT AND ARE IN PROCESS? - IT WILL- IT WILL TAKE EFFECT.

RIGHT.

I MEAN, RIGHT NOW IT'S WRITTEN IN.

IT WILL TAKE EFFECT AFTER THE SECOND READING WITHIN 30 DAYS AND THEN IT'LL BE AFFECTING IF PROJECTS MOVING FORWARD.

- SO THE CLOCK STARTS MOVING FORWARD.

- YEAH. - YEAH.

- ANY PROJECTS THAT HAVE NOW, YOU KNOW, APPLIED FOR THAT PERMIT, RIGHT.

OR PROJECTS GOING FROM THE PUBLIC SIDE.

THAT'S WHEN THOSE WILL KICK IN.

- GOT IT, THAT MAKES SENSE.

BUT NOT THE OCCUPANCY PERMIT, THE ORIGINAL BECAUSE IF THEY'RE APPLYING FOR THE OCCUPANCY PERMIT, IT MEANS THAT THEY'VE ALREADY DONE THE WORK, WHICH MEANS THEY MIGHT'VE GOTTEN THE CONTRACT LIKE TWO YEARS AGO WITH THE SUPPLY TO THEM.

- NOT AT THE CURRENT WAY IT'S WRITTEN.

- YEAH, OKAY.

AND THEN THE LAST CONSIDERATION JUST RELATES TO...

HOW OTHER COMMUNITIES WHO ARE DOING THIS, HOW ARE THEY...

WEIGHING...

THE CRITICAL NEED TO PROTECT WORKERS, RIGHT? THESE ARE OUR RESIDENTS IN OUR COMMUNITY.

- AND THE HOUSING AFFORDABILITY GOALS THAT EVERY CITY AND JURISDICTION IS UNDER.

- MM-HMM? - YOU KNOW, HAVING NOT SEEN THE PIPE, I DON'T SEE THE PIPELINE YET AND KIND OF HOW THIS MAY ROLL OUT IN FUTURE HOUSING PROJECTS THAT ARE EITHER PUBLIC OR NOT, OR PRIVATE AFFORDABLE HOUSING PROJECTS.

HOW ARE OTHER JURISDICTIONS LOOKING AT THAT? ARE THEY INCLUDING AFFORDABLE HOUSING PROJECTS IN THIS ORDINANCE? ARE THEY...

HAVE THEY SEEN ANY CONCERNS ABOUT SLOWING DOWN THE PIPELINE OF HOUSING DEVELOPMENT? - THERE'S NO SHORTAGE OF GOOD CONTRACTORS, RIGHT? AND THAT'S WHY WE'RE SEEING A LOT OF CONTRACTORS FROM THOSE AREAS FROM OVER HERE, WHERE THEY DO HAVE THESE SHOW UP HERE LOCALLY BECAUSE THERE IS NO SAFEGUARDS.

- AND I WOULDN'T BE CONCERNED ABOUT THE PIPELINE, RIGHT? WHEN THEY KNOW AND A GOOD, HONEST CONTRACTOR IS GOING TO BE ABLE TO WORK ON THAT BID AND ACTUALLY HAVE IT BE COMPETITIVE.

YOU'RE GOING TO START SEEING A HIGHER RISE OF RESPONSIBLE, HONEST CONTRACTORS.

AND THIS IS, YOU KNOW, WHAT I'VE SAID BEFORE, IT'S NOT ABOUT UNION OR NONUNION.

IT'S SIMPLY ABOUT GOOD CONTRACTORS.

AND I WOULD SAY THAT TO THAT ASPECT, YOU KNOW,

[04:40:03]

WE'VE GOT TO WEIGH, YOU KNOW, DO WE LOOK THE OTHER WAY ON WAGE THEFT ON CONSTRUCTION JUST TO BUILD, TO BENEFIT SOMEBODY ELSE WHO IN NEED, OR DO WE HELP PROTECT THE WORKERS THAT ARE BUILDING THESE LARGE DEVELOPMENTS THAT ARE NOW GOING TO NEED THAT AFFORDABLE HOUSING BECAUSE THEY WEREN'T PAID CORRECTLY.

AND, YOU KNOW, WHEN WE MAKE SURE GOOD CONTRACTORS ALSO HAVE HEALTHCARE, RIGHT, [THUD] THAT'S GOING TO LOWER THE NEEDS FOR THOSE RESOURCES THAT WE HAND OUT AT THE COUNTY.

WHAT BETTER WAY TO LOWER THAT BURDEN THAN MAKING SURE THAT EVERYONE'S GETTING PAID RIGHT.

I MEAN, IF THAT WAS MY WAY, EVERYONE WOULD BE PAID RIGHT AND MAKE SURE THEY HAVE A RETIREMENT AND HEALTHCARE.

BECAUSE IF EVERY WORKER IN THIS COUNTY THAT WORKED ON A PROJECT HAD THAT, THERE WOULD BE A LOT MORE RESOURCES TO GO AROUND.

- AND I THINK I'M JUST, AGAIN, TO ADD A LITTLE TO THAT, I THINK IT'S MORE ABOUT THE SECOND ORDER EFFECTS OF, YOU KNOW, AN ORDINANCE LIKE THIS, WHERE IT'S TRYING TO LET, YOU KNOW, PROSPECTIVE CONTRACTORS THAT MAY BE THINKING OF BIDDING ON THIS, THAT THERE'S GOING TO POTENTIALLY BE AN INVESTIGATION IN THEIR PAST.

AND JUST SO EVERYONE IN THE ROOM IS AWARE, I MENTIONED, YOU KNOW, THAT THERE'S ABOUT 300,000 LICENSED CONTRACTORS WITH ACTIVE LICENSES AT THE STATE.

AND I'VE RUN THESE NUMBERS BY SOME OF THE DEPUTIES, YOU KNOW, IN SACRAMENTO THAT ARE, YOU KNOW, THAT WORK FOR THE DIVISION OF LABOR STANDARDS ENFORCEMENT.

AND THEY THOUGHT THAT MAYBE 1000 WAS KIND OF A ROUGH ESTIMATE OF THE NUMBER OF CONTRACTORS THAT MIGHT NOT MEET CRITERIA THAT'S CURRENTLY BEING PROPOSED.

SO WE'RE TALKING ABOUT 1/3 OF 1%.

THIS IS NOT SOMETHING THAT'S, YOU KNOW, A HUGE PERCENTAGE OF CONTRACTORS.

- THANK YOU FOR THAT.

THE EDUCATION.

I APPRECIATE IT.

SEEING NO FURTHER QUESTIONS, SUPERVISOR KOENIG.

AND THEN I WANTED TO TURN IT OVER TO SUPERVISOR CUMMINGS TO BE ANY FINAL COMMENTS. - OH, SURE, SORRY.

- BUT GO FOR YOUR QUESTIONS FIRST.

- JUST A COUPLE OF QUICK QUESTIONS.

FIRST WAS, I MEAN, AS WAS POINTED OUT, THIS IS CLEARLY AN ISSUE ALSO FOR THE FAILURE OF STATE LAW.

WHAT ADVOCACY ARE YOU GUYS DOING AT THE STATE LEVEL TO TRY TO GET THE LABOR COMMISSIONER TO ACT FASTER? - I'D ACTUALLY, MAYBE... IS JAY STILL HERE? JAY, DO YOU WANT TO SPEAK? JAY'S ALSO WORKING ON LEGISLATION SIMILAR AT THE STATE LEVEL.

I MEAN, AND ALL WE WORK ON LABOR STANDARDS FOR SKILLED AND TRAINED ON PHARMACEUTICAL BUILDINGS.

WE ARE CONSTANTLY AT THE STATE LEVEL.

SO AS YOU KNOW, I'M THE LOCAL CEO OF THE BUILDING CONSTRUCTION TRADES COUNCIL, BUT WE ALSO HAVE THE STATE BUILDING AND CONSTRUCTION TRADES COUNCIL.

AND THE STATE IS DOING THE VERY SAME THING I'M DOING HERE AT THE STATE LEVEL.

AND THEN YOU HAVE THE NATIONAL BUILDING TRADES THAT ARE CONSTANTLY TRYING TO DO THE SAME, BUT YOU KNOW, WITH THE CURRENT ADMINISTRATION, IT'S A LITTLE TOUGHER, RIGHT? SO, AND WE ALL KNOW HOW LONG IT TAKES TO SEE SOMETHING FROM CREATION TO COMPLETION AT THE STATE LEVEL.

SO I'M HOPING WE CAN GET THERE AT THAT POINT.

AND THAT'S WHY IT REALLY MATTERS TO START TAKING THAT LOCAL CONTROL NOW AND BE PROACTIVE.

- AND ONE THING ON THE PENALTY SIDE OF THE CIVIL WAGE AND PENALTY ASSESSMENTS IS THERE WAS LEGISLATION LAST YEAR THAT WAS PASSED THAT, THAT WILL GO TO FUND THE LABOR COMMISSIONER'S OFFICE AND PRIMARILY TO HELP STAFF, YOU KNOW, NEW EMPLOYEES.

AND SO THAT WAS A BIG CHANGE BECAUSE MY...

THE ESTIMATE IS THAT THAT'S GOING TO PROVIDE, YOU KNOW, MILLIONS OF DOLLARS EACH YEAR THAT THEY CAN GO INTO, YOU KNOW, PERSONNEL THAT THEY CAN INCLUDE IN THE OFFICE.

AND THERE'S CURRENTLY, YOU KNOW, OBVIOUSLY THERE'S ABOUT 40 MILLION, YOU KNOW, CALIFORNIANS AND THERE ARE 52 WAS THE LATEST NUMBER DEPUTY LABOR COMMISSIONERS THAT DEAL ON PUBLIC WORKS PROJECTS.

AND SO FOR THE TENS OF THOUSANDS OF PROJECTS AND OBVIOUSLY, YOU KNOW, WORKERS MAY BE CONCERNED FOR A NUMBER OF REASONS OR MAY NOT KNOW THEIR RIGHTS, BUT I MEAN, THAT'S ONE OF THE BIG REASONS, BUT WE'RE ALSO TRYING TO, YOU KNOW, BOLSTER THE FUNDING THAT THE LABOR COMMISSIONER'S OFFICE IS GETTING.

AND OF COURSE THERE'S A BUDGET DEFICIT THERE, BUT THAT'S ONE BIG STEP.

WE MADE IN THE LAST LEGISLATIVE SESSION.

- OKAY, THANK YOU.

I MEAN, THE STATE PUSHES A LOT OF UNFUNDED MANDATES DOWN ON US AND WE CANNOT FIX ALL THE STATE PROBLEMS WITH OUR LOCAL BUDGET.

I MEAN, WE OBVIOUSLY WANT TO DO OUR PART, BUT ULTIMATELY, I MEAN, IF IT'S A FAILURE OF STATE LAW, I THINK THE PRIMARY SOLUTIONS SHOULD COME FROM THE STATE AS WELL.

AND THEY SHOULD ABSOLUTELY PUT THEIR MONEY WHERE THEIR MOUTHS ARE AND FIXING THE PROBLEM.

AND THEN FINALLY, THIS IS SORT OF A LITTLE BIT OF A UNUSUAL ARRANGEMENT TO HAVE STAFF IN THE AUDIENCE.

AND THE ADVOCATE UP HERE.

I JUST WANT TO KNOW IF STAFF, I MEAN, WE HAVE KIMBERLY FINLEY, OUR GENERAL SERVICES DIRECTOR WHO HANDLES CANDLE COUNTY CONTRACTING, YOU KNOW, OR ANY OTHER STAFF,

[04:45:02]

ASSISTANT CAO BENSON... - YEAH? - ...THAT WANT TO SHARE.

- IF YOU MAY. - YES, OF COURSE.

- AND THEN I'LL LET STAFF... - CEO.

- ...JUMP IN TOO.

SO CEO NICOLE COBURN.

SO WE'VE BEEN ABLE TO KIND OF TALK AMONGST OURSELVES.

AND NUMBER ONE, WE WANT TO ACKNOWLEDGE THAT WAGE THEFT IS ABSOLUTELY UNACCEPTABLE.

WE SHARE THAT AND WE WANT TO PROTECT WORKERS.

THIS ALIGNS WITH THE VALUES THAT THE BOARD HAS AND THAT I HAVE IN MY OFFICE AND THAT WE SET FORTH FOR THE COUNTY IN TERMS OF OUR ONGOING WORK.

AND CDI DIRECTOR MATT MACHADO CAN PROBABLY SPEAK TO THIS BETTER THAN I CAN, BUT ON COUNTY PUBLIC WORKS PROJECTS IN PARTICULAR, I BELIEVE WE ALREADY HAVE SOME PROTECTIONS IN PLACE, BUT I WILL ACKNOWLEDGE THAT THERE ARE PROBABLY, OR THERE ARE ROOM, THERE'S ROOM FOR IMPROVEMENT.

AND SO THERE'S PROBABLY THINGS THAT WE CAN BE DOING TO HELP STRENGTHEN THOSE PROTECTIONS.

AND WHAT WE WOULD LIKE TO DO IS TRY TO WORK ON IDENTIFYING THOSE.

THE DATA THAT SUPERVISOR KOENIG HAD MENTIONED, WE ALSO JUST GOT IT AND WE ARE VERY INTERESTED IN LOOKING AND ANALYZING THAT DATA AND TAKING IT SERIOUSLY.

SO WE WOULD REALLY LOVE TO DIVE INTO THAT DATA AND FURTHER DETERMINE WHAT'S GOING ON HERE LOCALLY AND TRY TO VALIDATE AND UNDERSTAND THAT INFORMATION IN TERMS OF THE POLICY CHOICES THAT THE BOARD IS MAKING.

AND AS PART OF THAT IS, I THINK IT'S ALREADY BEEN STATED HERE.

THE STATE PLAYS A CERTAIN REGULATORY ROLE.

SO TRYING TO FIGURE OUT HOW WE CAN HELP ADVOCATE FOR CHANGES OR TO STRENGTHEN THAT REGULATORY ROLE AND SOMEWHAT SEPARATE IT FROM THE ROLE THAT THE COUNTY CURRENTLY PLAYS OR SHOULD BE PLAYING, UNDERSTANDING THAT FRAMEWORK AND THE ENVIRONMENT IN WHICH WE'RE WORKING.

I THINK WE ALL THINK IS VERY IMPORTANT.

YOU KNOW, FROM WHAT, FROM WHAT'S HAPPENING BECAUSE THE STATE IS FALLING DOWN ON ITS OBLIGATION, SO TO SPEAK IN TERMS OF ENFORCING THESE REGULATIONS, IT SEEMS AS IF WE'RE NOW BEING ASKED TO STEP INTO THIS ROLE.

AND I THINK SUPERVISOR DE SERPA ALREADY STATED IT AND YOU HEARD IT HERE THIS MORNING.

WE HAVE A HUGE BUDGET PROBLEM.

SO WE WANT TO MAKE SURE WHATEVER WE'RE STEPPING INTO IS APPROPRIATE AND THAT WHATEVER THE COUNTY WOULD BE TASKED WITH DOING, WHETHER IT'S MAINTAINING A LIST, MAKING SURE ALL THE FORMS ARE IN PLACE, WHATEVER OTHER STEPS ARE WITHIN THIS ORDINANCE THAT WE AS A COUNTY CAN ABSORB THAT WORK.

SO OUR RECOMMENDATION AS STAFF WOULD BE TO SUPPORT ALL OF THIS WORK, BUT BEING ABLE TO LOOK AT THE DATA AND COME BACK WITH OPTIONS FOR THE BOARD IN TERMS OF WHAT WE CAN DO AS A COUNTY FOR...

TO STRENGTHEN OUR CURRENT PRACTICES.

AND THEN...

AND THAT MIGHT BE VERY NEAR TERM IMPROVEMENTS, BUT ALSO TO LOOK AT THIS ORDINANCE AND HOW WE CAN MAKE IT BETTER.

IF THAT'S WHAT WE WANT TO PROPOSE TO THE BOARD, BUT TO UNDERSTAND WHAT THE DATA IS SAYING AND WHAT IT...

WHAT THE IMPACTS AND IMPLICATIONS FOR US ARE AS A COUNTY.

SO THAT I WANT TO PUT THAT OUT THERE.

AND I WOULD ASK STAFF, IF YOU HAVE ANYTHING YOU WANT TO ADD, BOTH OUR GENERAL SERVICES DIRECTOR AND OUR CDI DIRECTOR ARE HERE IN TERMS OF WHAT THEY'VE LEARNED.

THEY'VE OBVIOUSLY HAD MANY MORE DISCUSSIONS THAN ME.

- HI EVERYONE.

THANK YOU, KIMBERLY FINLEY.

I'M THE DIRECTOR OF GENERAL SERVICES.

I JUST WANT TO STATE WHAT WE'VE ALL SAID HERE, WHICH IS WE DON'T AGREE WITH WAGE THEFT AND WE WANT TO TAKE STEPS TO MAKE SURE THAT THAT DOES NOT HAPPEN IN OUR COUNTY.

WE DO HAVE CERTAIN REGULATORY ITEMS ALREADY IN PLACE RELATED TO OUR CONTRACTS AND BIDDING.

WE MAKE SURE THAT WE HAVE PREQUALIFICATION FOR RESPONSIBILITY, INCLUDING DISCLOSURE OF CURRENT LAWSUITS OR LEGAL ITEMS PENDING THAT WOULD MAKE YOU NON-RESPONSIBLE TO BID ON OUR PROJECTS.

WE REQUIRE CERTIFIED PAYROLL TO BE SUBMITTED.

HOWEVER, I COMPLETELY ACKNOWLEDGE THAT WE CAN ADD ADDITIONAL LANGUAGE TO SPECIFICALLY ADDRESS THIS WAGE THEFT ISSUE WITHIN THE CURRENT CONTRACTING TOOLS THAT WE HAVE.

[04:50:03]

I ALSO JUST HAVE A QUESTION.

SO THIS ORDINANCE AS PROPOSED INCLUDES CIVIL WAGE AND PENALTY- PENALTY ASSESSMENTS.

AND I JUST WANT TO UNDERSTAND WHAT THAT PROCESS IS.

SO IS THERE A HEARING AND A DUE PROCESS THAT'S ASSOCIATED WITH THAT AS OPPOSED TO FINAL ORDERS AND AWARDS AND, YOU KNOW, DIFFERENT CITATIONS.

SO CAN YOU JUST EXPLAIN TO ME WHAT THAT ASSESSMENT DUE PROCESS IS? - SO YEAH, WHEN A COMPLAINT IS FILED WITH THE LABOR COMMISSIONER'S OFFICE OR THE DIVISION OF LABOR STANDARDS ENFORCEMENT, THEY INVESTIGATE IT AND THEY AFFORD THE CONTRACTOR ALL OF THEIR DUE PROCESS RIGHTS.

THERE'S NOTICES, THERE'S HEARINGS.

THEY INTERVIEW ANY AND ALL WITNESSES.

IF THERE'S NO WITNESS AND YOU KNOW, IT'S... SAY, I ALLEGE, YOU KNOW, ANOTHER CONTRACTOR OR A COMPETITOR OF MINE IS COMMITTING SOME SORT OF...

ENGAGED IN WAGE THEFT OR NOT PROPERLY PAYING ITS EMPLOYEES.

IF NO ONE COMES FORWARD AND SAYS, "YES, THAT'S THE CASE.

HERE'S THE EVIDENCE" AND THEIR EMPLOYER HAS A CHANCE TO REBUT IT.

THE CASE DIES.

AND SO YES, THOSE ARE FINAL ORDERS AND FINAL JUDGMENTS.

THEY CAN BE APPEALED THROUGH THE COUNTY COURT SYSTEM.

AND OCCASIONALLY THEY ARE, IF THE... YOU KNOW, A CONTRACTOR IN QUESTION WANTS TO, YOU KNOW, PAY FOR LEGAL FEES, BUT YES, THERE ARE DUE PROCESS RIGHTS AFFORDED THROUGHOUT THAT PROCESS.

- AND IF THE ITEM WAS APPEALED, WOULD IT STILL APPEAR ON THIS LIST? - SO YES, THEY WOULD, BUT THEY WOULD NOT, NOT FOR UNPAID...

NOT FOR UNPAID JUDGMENTS.

AND IT BECOMES FINAL.

AND THIS IS SOMETHING WHERE YOU JUST MAKE A PHONE CALL OR AN EMAIL TO THE INVESTIGATOR IN QUESTION TO FIND OUT, BECAUSE THEY HAVE 30 DAYS TO FILE A NOTICE OF APPEAL.

- OKAY, SO AS OF RIGHT NOW, THE WAGE JUDGMENT AND DETERMINATION, THE MEANING WOULD INCLUDE ASSESSMENTS THAT POTENTIALLY WERE APPEALED.

- YES.

- OKAY, THANK YOU.

AND THEN I JUST WANT TO GO BACK TO A QUESTION THAT YOU ASKED EARLIER, KIMBERLY ABOUT WHETHER THIS WOULD IMPACT SMALL PROJECTS OR LOCAL PROJECTS RIGHT NOW THERE'S IN THE ORDINANCE AS PROPOSED, A VERY SMALL CARVE OUT THAT IF YOU ARE A LOCAL BUSINESS AND YOU LIVE IN THE COUNTY AND OWN THE BUSINESS AND YOUR BUSINESS IS LESS THAN 2,000 SQUARE FEET, AND YOU'RE NOT DOING A FULL RECONSTRUCTION AND YOU'RE NOT EXPANDING YOUR FOOTPRINT, THEN YOU WOULD HAVE NOT BE, THIS WOULD NOT COVER YOUR PROJECT, BUT ANYTHING OUTSIDE OF THAT VERY, VERY LIMITED SCOPE.

IF YOU DON'T LIVE LOCALLY, IF YOU HAVE A BUSINESS THAT'S 3,000 SQUARE FEET, IF YOU'RE EXPANDING YOUR FOOTPRINT, THIS WOULD APPLY TO YOU.

IF YOU'RE A HOMEOWNER IN THE COUNTY AND YOU ARE LOOKING TO SELL IN THE NEXT 12 MONTHS, IF YOU ARE LOOKING TO LEASE, IF YOU ARE LOOKING TO RENT, THIS WOULD APPLY TO YOU.

SO I JUST WANTED TO CLARIFY, BECAUSE I THINK THAT MAYBE THAT WASN'T SPECIFICALLY ADDRESSED EARLIER.

- CAN I INTERJECT? - OF COURSE.

- TO THE CHAIR, JUST TO MAKE A COMMENT.

SO WHAT IS PROVIDED IN THE PACKET IS JUST AN EXAMPLE.

IT'S A TEMPLATE.

IT'S NOT... WHAT WE'RE NOT ADOPTING.

THERE'S NO FIRST READING.

THE IDEA IS THAT WE WANTED TO HAVE A STARTING POINT AND THAT STARTING POINT HAS CHANGED.

EVEN SINCE WE WERE CONSIDERING PUTTING THIS ON A FEW WEEKS AGO, BECAUSE WE'RE PROVIDING AN OPPORTUNITY FOR WHAT THIS WOULD DO WOULD BE TO PROVIDE AN OPPORTUNITY FOR THE BUILDING CONSTRAINTS COUNCIL TO TAKE INPUT IN FROM THE BOARD, WORKING WITH STAFF, BRING BACK RECOMMENDATIONS.

ONE OF WHICH WOULD BE, YOU KNOW, AN ORDINANCE FOR THE BOARD TO CONSIDER ALONG WITH, AND I DON'T THINK THAT WE'RE EXCLUDING ANY OTHER RECOMMENDATIONS FROM STAFF THAT HELPED STRENGTHEN, YOU KNOW, OUR WORKER PROTECTIONS HERE IN SANTA CRUZ COUNTY.

BUT THIS IS AN OPPORTUNITY FOR US TO MAKE SURE THAT THIS IS BRING- BROUGHT TO THE PUBLIC'S ATTENTION, GETTING INPUT FROM THE BOARD AND REALLY TRYING TO PROVIDE A STARTING PLACE FOR STAFF AND FOR THE TRADES TO WORK ON.

SO WE'RE NOT INTENDING THAT WE ARE ADOPTING ANY LANGUAGE THAT'S HERE TODAY.

WE'VE HEARD SOME CONCERNS ABOUT SOME OF THE LANGUAGE WE UNDERSTAND STAFF WANTS TO DIVE INTO DATA.

I DON'T THINK IT'S REALLY...

I DON'T THINK WE SHOULD BE STOPPING AT WHAT'S HAPPENING JUST IN SANTA CRUZ.

I MEAN, I THINK LOOKING AROUND THE STATE AT WHO IS DOING WHAT, AND WHAT ARE SOME OF THE EXAMPLES OF WAGE THEFT GOING ON WILL ACTUALLY BE REALLY INFORMATIVE BECAUSE WE MAY SEE SOME OF THESE DEVELOPERS OR CONTRACTORS SHOW UP IN OUR COMMUNITY AND WE WANT TO KNOW WHAT KIND OF BEHAVIOR HAVE THEY BEEN ENGAGING IN OTHER COMMUNITIES THROUGHOUT THE STATE.

AND I'LL FINALLY JUST SAY THAT, YOU KNOW, I UNDERSTAND, YOU KNOW, THE CONCERNS WITH FINDING DEVELOPERS AND PEOPLE THAT BUILD IN OUR COMMUNITY, BUT I THINK FIRST AND FOREMOST, WHAT WE'VE BEEN COMMITTED TO IS PROTECTING THE WORKERS AND ENSURING WORKERS GETTING PAID.

THERE'S A VARIETY OF FACTORS AS TO WHY WE'RE NOT SEEING DEVELOPERS COME IN FOR A VARIETY OF DIFFERENT PROJECTS.

WE...

MY OFFICE HAD BEEN ENGAGING WITH THE DEVELOPER RECENTLY AND HAVING CONVERSATIONS WITH THEM.

AND THEY WERE SAYING THAT, YOU KNOW, A LOT OF MARKET RATE PROJECTS

[04:55:01]

AREN'T PENCILING OUT RIGHT NOW.

AND A LOT OF THAT HAS TO DO WITH THE COST OF MATERIALS, TARIFFS, UNCERTAINTY IN THE SUPPLY CHAINS, INTEREST RATES THAT'S REALLY MAKING IT CHALLENGING TO GET FINANCING FOR SOME OF THESE PROJECTS.

SO WHILE THEY'RE GETTING ENTITLED, THERE'S A WHOLE VARIETY OF OTHER REASONS WHY THEY'RE NOT GETTING THE FUNDING AND THE RESOURCES TO MOVE FORWARD WITH BUILDING THE PROJECTS.

AND THAT OBVIOUSLY HAS REASONS TO DO WITH THE FEDERAL ADMINISTRATION, WHAT'S HAPPENING FEDERALLY, WHAT'S HAPPENING WITH THE STRAIT OF HORMUZ AND THE GAS PRICES GOING UP AND HOW THAT'S AFFECTING THE SUPPLY CHAIN.

SO, BUT THIS IN PARTICULAR IS REALLY ENSURING THAT WHEN THESE PROJECTS GET BIDDED, THAT WE ARE NOT RIPPING OFF LOCAL WORKERS.

WE ARE NOT RIPPING OFF IMMIGRANT WORKERS.

I MEAN, THIS IS NOT A UNION NON-UNION ISSUE REALLY ISN'T TRYING TO ENSURE THAT WE'RE NOT DOING BUSINESS WITH PEOPLE WHO ARE GOING TO STEAL WAGES FROM THE WORKERS AND I'LL END IT THERE.

AND I KNOW I HAVE TO LEAVE HERE PRETTY SOON.

SO I'M HOPING WE CAN GO OUT TO THE PUBLIC AND GET PUBLIC COMMENT.

- DO WE HAVE ANY OTHER QUESTIONS FROM MY COLLEAGUES? SEEING NONE.

I'LL OPEN UP PUBLIC COMMENT FOR ANYBODY WHO'D LIKE TO SPEAK ON THIS ITEM.

GO AHEAD AND APPROACH THE PODIUM.

DID I JUST CUT THEM OFF? I DO... GOOD AFTERNOON, MATT MACHADO, CDI DIRECTOR.

- OH, SORRY.

I DO WANT TO ADD A COUPLE OF COMMENTS.

FIRST TO REITERATE MS. FINLEY'S COMMENT ABOUT PUBLIC CONTRACTS ON PUBLIC WORKS CONTRACTS.

WE HAVE A VERY ROBUST LABOR COMPLIANCE PROGRAM, SO THERE'S ALWAYS ROOM FOR CONVERSATION, MAYBE ROOM FOR IMPROVEMENT, BUT I CAN ASSURE YOU THAT WE'RE CHECKING CLASSIFICATIONS, YOU KNOW, CERTIFIED PAYROLL.

WE'RE VERIFYING LABOR COMPLIANCE AT EVERY PAY PERIOD, WHICH IS MONTHLY.

BUT THEN THE MORE COMPLICATED SIDE OF IT IS WHAT WE WERE JUST TALKING ABOUT, THE PRIVATE CONTRACTS.

I THINK THAT'S A WHOLE NEW AREA OF CHALLENGE FOR US.

I THINK IT'S WORTHY CONVERSATION AND WE'RE OPEN TO THAT CONVERSATION.

BUT I CAN JUST PUT OUT THERE, THAT'S A CHALLENGE.

I MEAN, FOR INSTANCE, WE DON'T ISSUE CERTIFICATES OF OCCUPANCY IN THIS COUNTY, NOT FOR RESIDENTIAL.

WE DO, DO INSPECTIONS AND WE CERTAINLY CAN USE THAT AS A TOOL, BUT THAT'S A PRETTY SIGNIFICANT CHALLENGE FOR US.

AND SO THERE'S SOME TRADE-OFFS THERE.

AND SO I JUST WANT TO CAUTION YOUR BOARD THAT THAT WILL REQUIRE SOME SIGNIFICANT CONVERSATIONS TO START REGULATING PRIVATE CONTRACTS IN THIS WAY.

THERE'S JUST NEW CHALLENGES FOR US.

SO THAT'S IT FOR ME.

THANK YOU FOR THE TIME.

[PAUSE] [RUSTLES] - HELLO, COUNCIL.

MY NAME IS EMMANUEL ZENDEJAS.

FIRST MOST, I WANT TO SAY HAPPY CINCO DE MAYO.

I'M GLAD IT FALLS ON TACO TUESDAY.

IN ALL SERIOUSNESS, I HAVE A SERIOUS ISSUE.

ONE, LET ME INTRODUCE MYSELF.

I'M A BUSINESS REP FOR LOCAL 104 SHEET METAL UNION.

I HAVE WORKED FOR LARGE CONTRACTORS AND SMALL CONTRACTORS.

ALL I CAN SAY HAS BEEN GOOD ACTORS.

AND WHAT WE'RE TALKING ABOUT HERE IS THE BAD ACTORS.

AND WE DON'T WANT THEM TO INFILTRATE AS THEY ALREADY GOT THEIR FOOT IN THE DOOR.

NOT IN SANTA CRUZ, NOT HERE, KEEP ON MOVING ON.

THESE BAD ACTORS, THEY COME IN AND THEY COME INTO THIS TOWN WITH UNDERBIDDING.

AND THEN WHEN THEY DO THAT, THEY HIT YOU GUYS UP WITH, ONE, CHANGE ORDERS.

SO YOU... WE'RE UP IN THE BID.

AND YOU THINK YOU'RE GETTING SOMETHING WHERE YOU'RE NOT.

THEY UNDERCUT THE MATERIAL.

I SEE A LOT OF YOUR ARCHITECTURAL SHEET METAL.

IT'S DISINTEGRATING BECAUSE IT'S NOT TO COMPLIANCE.

IT'S THE SEASIDE.

THEY'RE NOT... THEY'RE FROM OUT OF STATE, MOST OF THEM.

AND ALL WE'RE TRYING TO DO IS PROTECT THE BUDGET, PROTECT IMMIGRANT WORKERS.

AND SO IT'S FAIR TO THEM.

AND ANOTHER THING IS, AND LET'S NOT KEEP REWARDING THESE BAD ACTORS AND LET'S NOT REWARD BAD BEHAVIOR.

SO I WOULD LIKE TO SAY, LET'S ADOPT THIS LANGUAGE.

ADOPTING THIS LANGUAGE IS GONNA BE A START.

THAT'S IT, I APPRECIATE IT.

- ANY FURTHER COMMENTS IN THE ROOM? PLEASE FORM A LINE IF YOU'RE PLANNING ON SPEAKING.

- GOOD AFTERNOON, SUPERVISORS.

MY NAME IS ANTHONY VISCUSO AND I'M A BUSINESS AGENT FOR LOCAL 16, HEAT AND FROST INSULATORS.

YOU KNOW, AS I WAS LISTENING TO THE CONVERSATION, THE QUESTION CAME UP ABOUT, YOU KNOW, POTENTIALLY HAVING CONTRACTORS BIDDING.

AND, YOU KNOW, OFTENTIMES THIS BECOMES A QUESTION WHEN WE'RE TALKING ABOUT A PROJECT LABOR AGREEMENT.

THEY'RE, "OH, NON-UNION IS NOT GONNA BID IT.

UNION IS GONNA BID IT." AND WHAT WE'VE SEEN HAPPEN IS THAT THE DEMAND DOESN'T GO DOWN FOR THE PROJECTS AND THE DEMAND DOESN'T GO DOWN FOR THE LABOR.

THE ONLY THING THAT CHANGES IS THE RESPONSIBLE PERSON AT THE TOP WHO'S ACTUALLY AT THE TOP,

[05:00:01]

WHO'S ACTUALLY CONDUCTING THAT BUSINESS.

SO OUR CONTRACTORS HAVE NO PROBLEMS GETTING MORE WORKFORCE WHEN THEY NEED IT.

THE WORKFORCE IS THERE.

IF THE BAD CONTRACTOR CAN'T GET THE PROJECT, THE PROJECT WILL STILL GO FORWARD, BUT IT'LL GO FORWARD WITH A RESPONSIBLE CONTRACTOR WHO WILL END UP ABSORBING THOSE WORKERS FROM THAT BAD CONTRACTOR THAT ARE STILL QUALIFIED TO DO THE WORK.

SO THAT'S THE FIRST THING I WANT TO TALK ABOUT.

THE OTHER THING THAT WAS MENTIONED, YOU KNOW, THIS ISN'T A UNION VERSUS NON-UNION ISSUE.

EVEN THOUGH I'M A UNION REP, WE REPRESENT EVERY WORKER ON THE JOB SITE.

I CAN'T, I'M ALSO A COMPLIANCE DIRECTOR FOR MY LOCAL.

I'VE ALREADY FILED 40 COMPLAINTS THIS YEAR ON CONTRACTORS THAT JUST DID NOT, THEY DID NOT PAY.

THEY DIDN'T CLASSIFY RIGHT.

OR THEY PAID, THEY PAID THE PREVAILING WAGE ON THE PREVAILING WAGE PROJECT.

AND THEN ON THE VERY NEXT PROJECT, THEY SAID, "HEY, YOU'RE WORKING FOR HALF PRICE BECAUSE I PAID YOU FULL PRICE ON THAT OTHER ONE." SO EVEN CONTRACTORS THAT'LL LOOK GOOD ON PAPER ON THE GOVERNMENT PROJECTS, THEY'LL GET IT BACK.

THEY'LL FIGURE OUT HOW TO DO THAT.

SO I'M GLAD WE'RE HAVING THIS STUDY SESSION.

I'M GLAD WE'RE HERE.

I KNOW THAT THIS IS GONNA ALLEVIATE TIME FOR ME FILING COMPLIANCE.

I KNOW THIS WILL ALLEVIATE PRESSURE OFF THE STATE LEVEL IF WE CAN NIP THESE BAD ACTORS IN THE BUD.

BUT ANYTHING YOU GUYS CAN DO TO TALK ABOUT THIS FURTHER.

I... IT WAS MENTIONED $10,000 IS VERY HIGH.

I WOULD LOVE TO SEE THAT COME DOWN, BUT, YOU KNOW, WE'RE HERE TO SUPPORT AND WORK WITH YOU.

AND I'M REALLY GRATEFUL THAT WE'RE HERE TALKING ABOUT THIS TODAY.

SO THANK YOU.

- HI, HOW ARE YOU? THANK YOU FOR ALLOWING US THE TIME.

SO I'M SPEAKING AS A REPRESENTATIVE AS WELL, BUT ALSO AS A SANTA CRUZ RESIDENT.

AND LET ME TELL YOU, IT'S AWFUL TO LIVE HERE AND HAVE TO WALK TO THE BAY AREA, SAN FRANCISCO, JUST TO MAKE A DECENT LIVING TO STAY HERE.

AND YOU WERE ASKING ABOUT COMPLIANCE CERTIFIED PAYROLLS.

WE JUST HAVE TWO CASES HERE IN SANTA CRUZ COUNTY, WHICH IS TAKING LONGER THAN FOUR YEARS FOR THE STATE OF CALIFORNIA TO ACTUALLY ASSESS THE PENALTIES TO PAY THE WORKERS.

SOME OF THE WORKERS LOSE THEIR JOBS, LOST EVERYTHING, AND THERE'S NO REPERCUSSIONS.

SO CERTIFIED PAYROLL CAN MEAN ANYTHING IN THESE PROJECTS.

THEY FIND A WAY TO CHEAT.

THEY FIND A WAY TO DO THE WRONG.

AND AT THE END, THE WORKER IS THE ONE THAT GETS EVERYTHING OR THE BAD PART OF EVERYTHING.

SO I WILL RECOMMEND AND ENCOURAGE YOU GUYS TO MAKE A GOOD DECISION AND PROTECT OUR WORKERS AND PROTECT OUR COUNTY.

WE GOT COMPANIES THAT ARE COMING OUT OF STATE, OUT OF THE AREA, STATING THAT THEY'RE LOWER THAN THE COMPANY THAT IS DOWN THE STREET.

IN MY MIND, I CANNOT WRAP THAT AROUND.

THEY GOT TO PAY HOTELS, TRAVEL, PLUS THE WAGES.

HOW CAN THEY BE LOWER THAN A CONTRACTOR THAT LIVES DOWN THE STREET OR ANYBODY? IT MAKES NO SENSE.

AND WE FACE THIS EVERY DAY.

WE'RE COMMITTED TO HELP NOT JUST THE UNION SIDE, EVERY WORKER IN CALIFORNIA THAT SEEMS TO BE TREATED DECENTLY.

AND THAT'S WHAT WE DO EVERY DAY.

AND UNFORTUNATELY, WE DON'T GET MUCH SUPPORT.

SO I'M ENCOURAGING YOU AND ASKING YOU DEEPLY SUPPORT OUR PEOPLE THAT LIVE HERE IN THIS COUNTY.

- SEEING NO FURTHER COMMENTS IN THE CHAMBERS.

IS THERE ANYONE ON THE PHONE? - YES, CHAIR.

[PAUSE] - KEITH, YOUR MICROPHONE IS NOW AVAILABLE.

- ALL RIGHT, THANK YOU, BOARD.

HOPEFULLY YOU ALL CAN HEAR ME.

MY NAME IS KEITH SILVA.

I'M ALSO WITH ACHIEVEMENTAL WORKERS 104.

I WANT TO THANK CASEY FOR BRINGING THIS TO YOUR COUNTY.

AREA I REPRESENT HERE IN SANTA CLARA COUNTY, WE HAVE PASSED SEVERAL OF THESE RESPONSIBLE CONSTRUCTION ORDINANCES AS IN, AND WE'VE SEEN IT MAKING A CHANGE.

I RECOGNIZE THAT THERE IS A SYSTEMIC PROBLEM WITH THE STATE AND THE WAY IT'S REGULATED.

AND WE'RE ASKING YOU TO BE A PART OF THAT CHANGE.

SOME OF THE BIGGEST VIOLATORS WE SEE ARE IN LARGE HOUSING DEVELOPMENTS.

THESE ARE WHERE THE BAD ACTORS COME IN.

I KNOW SEVERAL MEMBERS HERE HAVE MENTIONED CERTIFIED PAYROLLS ON THESE PUBLIC WORKS PROJECTS.

AND YES, IT'S A STEP INTO TRYING TO KEEP IT LEVEL.

BUT I THINK AS ANTHONY SAID, "THEY'LL FIND A WAY TO GET IT BACK." WE'VE SEEN WHERE THEY'LL PAY CASH AND ASK BACK.

WE'VE SEEN WHERE THEY'LL PAY THE CORRECT RATE, BUT SAY THE WORKERS ONLY BEEN THERE FOR TWO OR THREE HOURS.

SO THEY'LL GET...

THEY'LL GET AWAY WITH IT ANY WAY THEY CAN.

I THINK WE ALL AGREE THAT THAT WAGE THEFT IS A REAL PROBLEM, NO MATTER WHAT THE DOLLAR COST IS.

ALL WE'RE ASKING IS WE THANKING YOU FOR CONSIDERING THIS.

AND YES, IT SOUNDS LIKE SOME WORK NEEDS TO BE DONE, BUT THIS IS REALLY ABOUT DELIVERING A SAFER, HIGHER QUALITY PROJECT ON TIME WHILE HELPING PROTECT THE WORKERS, PREVENTING THE WAGE THEFT AND ENSURING A FAIR PLAYING FIELD.

I HEAR THAT SOMETIMES YOU HAVE TROUBLE GETTING BIDDERS.

AND I ABSOLUTELY AGREE WITH CASEY.

IF THEY KNOW, IF A GOOD CONTRACTOR KNOWS THAT A BAD CONTRACTOR IS GONNA BE BIDDING

[05:05:02]

THAT PROJECT AND THEY'RE GONNA GO WITH THE LOWEST BID, THEY'RE NOT GONNA PUT THEIR TIME INTO IT.

THIS WILL HELP ENSURE THAT YOU WILL GET GOOD RESPONSIBLE CONTRACTORS.

SO I WANT TO THANK YOU FOR YOUR TIME.

AND I URGE YOU TO CONTINUE IN THIS CONVERSATION.

- I SEE NO FURTHER SPEAKERS ONLINE, CHAIR.

I WILL NOW RETURN IT TO THE BOARD FOR A MOTION.

SUPERVISOR CUMMINGS.

AND I JUST WANT TO THANK STAFF AND MEMBERS OF THE PUBLIC WHO ARE HERE TODAY AND CASEY AND HIS FOLKS FOR BEING HERE TO HELP PRESENT ON THIS ITEM.

AND AGAIN, YOU KNOW, THIS IS REALLY JUST TRYING TO HONOR THE COUNTY'S POLICY, WHICH WE PASSED.

IT SAID, IF WE'RE GONNA DO ANYTHING OVER EIGHT HOURS, WE HAVE TO GET DIRECTION FROM THE BOARD.

AND WHAT'S BEFORE US TODAY IS JUST AN OPPORTUNITY FOR THOSE CONVERSATIONS BETWEEN STAFF AND BETWEEN THE TRADES TO HAPPEN.

IT'S GONNA ALLOW STAFF TIME TO LOOK INTO THE DATA.

AND IT'S GONNA ALLOW US TO HOPEFULLY BRING SOMETHING FORWARD THAT'S GONNA WORK FOR OUR COUNTY.

AND SO THAT IS THE INTENT OF WHAT'S BEFORE US TODAY.

SO I'D LIKE TO MOVE THE RECOMMENDED ACTIONS AND ALSO RECOMMEND THAT IF THERE'S OTHER RECOMMENDATIONS THAT STAFF WANTS TO PRESENT, THAT THEY ALSO BRING THOSE BACK TO THE BOARD ON THAT SECOND MEETING IN SEPTEMBER OF...

OR THE MEETING IN SEPTEMBER OF 2026.

- I'LL SECOND THAT.

- WE HAVE A MOTION FROM SUPERVISOR CUMMINGS AND A SECOND FROM SUPERVISOR HERNANDEZ.

FURTHER COMMENT? SUPERVISOR KOENIG.

I... FIRST OF ALL, I THINK WE'VE HEARD TODAY THAT EVERYONE AGREES WE WANT TO END WAGE THEFT.

I THINK THERE'S STILL SOME HOMEWORK TO DO HERE.

I MEAN, WE WILL ULTIMATELY WANT TO UNDERSTAND THE IMPACTS OF THE ORDINANCE THAT'S BEEN PROPOSED AS IT'S BEEN UTILIZED IN CITIES THAT HAVE ADOPTED SOMETHING SIMILAR AND INCLUDING ON PRIVATE CONTRACTS, AS WELL AS OUR COUNTY PERMITTING PROCESS.

IT'S CLEAR THAT WE NEED TO HAVE ACCURATE MEASUREMENT OF THE PROBLEM AND THAT WE HAVE THE FIGURE OF $2.8 MILLION TODAY, BUT WE'VE HEARD THAT THAT MAY NOT BE THE WHOLE PICTURE.

SO WE NEED A COMPLETE PICTURE.

AND THEN WE ALSO NEED TO UNDERSTAND ALTERNATIVES.

I MEAN, THIS, AGAIN, THANK YOU FOR BRINGING A SOLUTION, BUT ULTIMATELY, IF WE DON'T HAVE A PERFECTLY DEFINED PROBLEM, WE DON'T HAVE A PERFECTLY DEFINED SOLUTION EITHER.

WE CAN'T BE SURE OF THAT.

AND SO I THINK, I MEAN, I'VE SEEN ALL AN ALTERNATIVE THAT THE CARPENTERS HAVE PROPOSED, A MODEL ORDINANCE THAT INVOLVES PRE-QUALIFICATION, WHERE YOU ASK CONTRACTORS THAT ARE BIDDING IF THEY HAVE HEALTH INSURANCE AND OTHER KINDS OF QUALIFICATIONS.

SO THAT COULD BE AN OPTION.

CERTAINLY COUNTY STAFF HAS SUGGESTED THEY COULD STRENGTHEN OUR CURRENT PROCESS AND EXTEND IT TO SUBCONTRACTORS.

SO FOR ALL THOSE REASONS, I WOULD OFFER A SUBSTITUTE MOTION THAT DIRECTS STAFF TO RESEARCH WAGE THEFT IN SANTA CRUZ COUNTY AND RECOMMEND A STRATEGY TO PREVENT IT THROUGH STRONGER COUNTY CONTRACTING PROCESSES OR ORDINANCE BY THE SECOND MEETING IN OCTOBER.

AND I DO THINK WE NEED TILL THE END OF OCTOBER JUST BECAUSE OTHERWISE STAFF IS GONNA PROBABLY BE WORKING THROUGH THEIR SUMMER BREAK TO TRY TO GET THIS ON OUR AGENDA IN TIME FOR SEPTEMBER.

- CAN I SAY SOMETHING IN RESPONSE REAL QUICK? - PLEASE.

- WHEN WE MET WITH THE STAFF, WE ACTUALLY ASKED THEM IF IT WOULD BE OKAY TO MOVE THE DATE TO THE SECOND MEETING IN SEPTEMBER, AND THEY AGREED THAT THAT WOULD BE FINE.

SO THAT'S WHY WE LANDED ON THAT SECOND MEETING IN SEPTEMBER DATE.

WE INITIALLY WERE GONNA BRING FORWARD A FIRST READING AND WE, THROUGH HAVING CONVERSATIONS WITH STAFF, AGREED THAT PROVIDING DIRECTION FOR STAFF AND THE TRADES TO KIND OF WORK OUT THESE ISSUES AND BRING SOMETHING BACK IN SEPTEMBER OF 2026 WAS APPROPRIATE.

AND SO JUST WANT TO PUT THAT OUT THERE THAT THIS IS A CONVERSATION THAT WE'VE HAD AND STAFF WERE IN AGREEMENT WITH OF THE DIRECTION WE PROVIDED.

- SO WE HAVE A SUBSTITUTE MOTION ON THE FLOOR.

DO WE HAVE A SECOND TO THE SUBSTITUTE MOTION? - I'LL SECOND.

- WE HAVE A SUBSTITUTE MOTION FROM SUPERVISOR KOENIG, A SECOND FROM SUPERVISOR DE SERPA.

FURTHER DISCUSSION ON THE SUBSTITUTE MOTION? - CAN I FURTHER...

CAN I JUST GET SOME CLARIFICATION ON WHAT THAT SUBSTITUTE IS AGAIN? - SURE, I CAN READ IT AGAIN.

AND IT WAS TO DIRECT STAFF TO RESEARCH WAGE THEFT IN SANTA CRUZ COUNTY AND RECOMMEND A STRATEGY TO PREVENT IT THROUGH STRONGER COUNTY CONTRACTING PROCESSES OR ORDINANCE BY THE SECOND MEETING IN OCTOBER.

[PAUSE] I GUESS I'LL JUST SAY, I'M ACTUALLY COMFORTABLE MOVING FORWARD TO THE ORIGINAL MOTION, JUST GIVEN THE AMOUNT OF WORK THAT WE'VE DONE TO NEGOTIATE THIS BETWEEN STAFF AND THE TRADES AND THE MEETINGS THAT WE'VE HAD.

AND SUPPORT OF WHAT THE TRADES ARE RECOMMENDING, I'D BE SUPPORTING THE ORIGINAL MOTION THIS TIME.

[PAUSE] - ANY FURTHER DISCUSSION? - I...

WHAT I'LL SAY IS THAT I DON'T THINK THAT THE SUBSTITUTE MOTION PRECLUDES US FROM MOVING FORWARD WITH AN ORDINANCE.

I REALLY APPRECIATE WHAT'S COME FORWARD.

[05:10:02]

I DON'T...

THERE ARE THINGS IN IT THAT I AM CONCERNED ABOUT AND I DON'T FEEL THAT TODAY IS THE DAY TO MAKE THOSE DECISIONS.

I MEAN, OBVIOUSLY IT'S COMING BACK FOR FIRST READ, BUT I WOULD LIKE A FURTHER INVESTIGATION AND A VERY ROBUST REPORT ABOUT...

BECAUSE SOMETIMES WE PASS THINGS AND THERE ARE UNINTENDED CONSEQUENCES THAT I NEVER DREAMED OF.

AND SO I WOULD LIKE STAFF TO COME BACK TO TALK MORE ABOUT WHAT THIS ACTUALLY MEANS IF WE PUT THIS INTO PLACE.

PLUSES AND MINUSES ON THAT.

- CAN I ASK QUICK... SORRY.

- I WAS GONNA...

I WAS GONNA CALL FOR A VOTE UNLESS YOU HAVE MORE COMMENTS.

- JUST A QUICK QUESTION.

I JUST WANT TO HEAR FROM THE TRADES TO SEE WHAT THEIR THOUGHTS ARE ON THAT SUBSTITUTE MOTION.

- WELL, ANYTIME WE KICK THE BALL DOWN THE ROAD, JUST LIKE THE STATE WHEN IT COMES TO WAGE THEFT, I THINK IT'S IMPORTANT THAT WE STICK WITH THIS BEING AN ORDINANCE AND HOW THAT ORDINANCE IS DEVELOPED.

I'M HAPPY TO WORK THOSE KINKS OUT WITH STAFF, RIGHT? BUT IF WE THEN AGAIN, OPEN IT UP TO MULTIPLE DIFFERENT WAYS AND STAFF IS ALREADY BUSY ENOUGH AND NOW WE'RE GOING TO BURDEN THEM WITH EVEN MORE STUDIES AND MORE DEVELOPMENT WHEN WE'RE SIMPLY ASKING CONTRACTORS, "HEY, DO YOU HAVE WAGE THEFT, DO YOU NOT?" AND IT'S VERY SIMPLY IMPLEMENTED AND HOW IT WORKS OUT AS FAR AS REDEFINING THIS.

I MEAN, I AM HAPPY TO WORK THAT OUT WITH STAFF.

IT IS VERY IMPORTANT THAT WE GET THIS ON THE BOOKS AND MOVE IT FORWARD TO BRING IT BACK IN SEPTEMBER.

AND THAT'S JUST FOR YOUR CONSIDERATION.

AND THEN IF SEPTEMBER, YOU DON'T LIKE THAT ORDINANCE, WE CAN HAVE THAT DISCUSSION.

BUT OPENING IT UP AND ALLOWING MORE TIME THAT STAFF IS ALREADY TIGHT ON, I THINK WOULD BE DETRIMENTAL TO WHAT WE'RE REALLY TRYING TO DO HERE.

AND THAT IS PROMOTE HONEST CONTRACTORS AND NOT TELL WORKERS TO WAIT.

- I'M NOT SURE THE SUBSTITUTE MOTION PRECLUDES OUR STAFF FROM LOOKING AT WHAT YOU BROUGHT FORWARD AND BRINGING US A RECOMMENDATION.

I THINK BOTH THINGS CAN HAPPEN.

THAT'S MY UNDERSTANDING.

- SO I'M READY TO CALL THE VOTE.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - NO.

MOTION FAILS THREE TO TWO.

SO NOW WE WILL RETURN TO THE ORIGINAL MOTION, BUT I DO HAVE A QUESTION, SUPERVISOR CUMMINGS, ABOUT THAT ORIGINAL MOTION.

- MM? - YOU ADDED SOME LANGUAGE TO THE RECOMMENDED ACTIONS.

CAN YOU PLEASE REPEAT WHAT THAT IS? - YEAH, I JUST ADDED THAT STAFF COULD RETURN WITH ANY OTHER RECOMMENDATIONS FOR THE BOARD TO CONSIDER AT THAT SEPTEMBER 26TH MEETING.

I MEAN, IT DID SOUND LIKE, YOU KNOW, THERE'S WAYS TO STRENGTHEN SOME OF THE PUBLIC WORKS LANGUAGE.

THERE MAY BE OTHER RECOMMENDATIONS OUTSIDE OF THE ORDINANCE THAT COULD HELP STRENGTHEN SOME OTHER POLICIES.

AND SO, YOU KNOW, GIVEN THE INTEREST IN DOING MORE RESEARCH AND LOOKING AT NOT JUST THIS ORDINANCE, BUT ARE THERE OTHER WAYS WE CAN STRENGTHEN THIS POLICY? I DIDN'T WANT TO PRECLUDE US FROM NOT HAVING OTHER TYPES OF RECOMMENDATIONS, NOT IN SUBSTITUTE OF THE ORDINANCE, BUT IN ADDITION TO THAT COULD FURTHER HELP STRENGTHEN THE POLICIES THAT WE HAVE HERE IN THE COUNTY.

- AND SO THE COMMENTS FROM CEO COBURN EARLIER WERE ABOUT DOING FURTHER RESEARCH TO BETTER UNDERSTAND THE ISSUE THAT WE'RE TRYING TO SOLVE.

IS THAT WORK INCLUDED IN THE MOTION THAT YOU'RE MAKING? - THAT IS CORRECT.

THAT DOES... THE RECOMMENDATION DOES NOT PRECLUDE STAFF TO DO OTHER RESEARCH.

AND IF WE WANT TO FORMALLY INCLUDE IT, HAPPY DIRECTED STAFF CONDUCTS, YOU KNOW, RESEARCH THAT WOULD HELP SUPPORT US PREVENTING WAGE THEFT IN SANTA CRUZ COUNTY.

SUPERVISOR, I MEAN, SORRY, CEO COBURN? - YEAH, I WILL JUST SAY REGARDING THE TIME WHEN WE COME BACK WITH ALL THIS INFORMATION IN THE ORDINANCE, MY UNDERSTANDING IS JUST BECAUSE WE HAVE YEAR END IN JULY AND ADOPT A BUDGET IN SEPTEMBER, IF WE COULD COME BACK IN OCTOBER, WE'VE THOUGHT AN ADDITIONAL MONTH WOULD BE USEFUL.

- THAT'S FINE.

- FINE.

- SO SUPERVISOR CUMMINGS, YOU'RE ADJUSTING THE MOTION TO MAKE THE RETURN BACK TO BE OCTOBER? - OCTOBER.

- BY NO LATER THAN THE SECOND MEETING IN OCTOBER, CORRECT.

- AND THAT WAS OKAY WITH YOU, SUPERVISOR HERNANDEZ? - OKAY, YES, I'M INCLINED TO SUPPORT THIS MOTION BECAUSE I THINK IT ALLOWS US TO LEARN ABOUT THE ISSUE.

AS I STATED IN MY COMMENTS, I'M STILL LEARNING.

THIS IS...

YOU'VE BROUGHT A LOT OF NEW INFORMATION TO ME AND I APPRECIATE THAT AND ALSO MAKE PROGRESS IN ADDRESSING THE ISSUE.

MY HOPE IS THAT THROUGH THIS PROCESS, WHEN WE'RE WORKING WITH STAFF AND CDI,

[05:15:02]

YOU CAN WORK OUT SOME OF THE KINKS AND SOME OF THE CHALLENGES.

AND I'D BE HAPPY TO MEET WITH YOU TO TALK ABOUT SOME OF THE BUST THAT I HAVE AND CONCERNS THAT I HAVE.

SO WHEN SOMETHING DOES COME BACK, IT'S A GOOD FIT FOR SANTA CRUZ COUNTY AND WHERE WE'RE AT TODAY.

BUT WITH THAT, ARE THERE ANY FURTHER COMMENTS FROM...

YEAH, SUPERVISOR KOENIG? - YEAH, I MEAN, I'M NOT GONNA SUPPORT THE MOTION.

THE MAJOR PROBLEM I SEE WITH THIS AND WITH ALL DUE RESPECT TO THE TRADES COMING HERE TODAY, THEY'RE NOT THE ONLY INTERESTED GROUP.

AND SO THIS MOTION IS SPECIFICALLY DIRECTING STAFF TO WORK WITH ONE INTEREST GROUP TO DEVELOP AN ORDINANCE.

AND I THINK THAT THAT IMPACTS OUR ABILITY TO BE IMPARTIAL AND DO THE ANALYSIS NEEDED TO DEVELOP A GOOD COUNTY ORDINANCE.

AND I WOULD... I HAVE SERIOUS CONCERNS ABOUT THE PRECEDENT THAT THAT SETS.

I MEAN, ARE WE SIMPLY GOING TO LET ANY INTEREST GROUP DEVELOP COUNTY LAWS? IS THAT HOW WE'RE GOING TO CREATE LAWS IN OUR COUNTY GOING FORWARD? I MEAN, I'M NOT SAYING THAT WE SHOULDN'T CONSULT WITH THE TRADES ON THIS ISSUE.

OF COURSE WE SHOULD, BUT I DON'T THINK THAT THEY SHOULD HAVE THE EXCLUSIVE DIRECTION TO WORK WITH STAFF IN DEVELOPING THE ORDINANCE THAT WE SEE COME BEFORE US.

- I'M GONNA MAKE A BRIEF POINT HERE.

I JUST WANT TO HIGHLIGHT THAT THE SANTA CRUZ MONTEREY BUILDING CONSTRUCTION TRADES COUNCIL CONSISTS OF 18 DIFFERENT TRADES.

SO THIS ISN'T GONNA BE DONE IN A VACUUM.

THERE'S A LOT OF PEOPLE FROM A LOT OF DIFFERENT GROUPS THAT ARE IMPACTED WHO WE'VE MET WITH AND WHO WOULD BE INVOLVED IN THIS PROCESS.

AND I WILL JUST SAY THAT THESE ARE THE PEOPLE WHO ARE BEING IMPACTED.

AND SO WHEN WE THINK ABOUT WHO ARE THE MOST VULNERABLE, IT'S OUR WORKERS AND THIS IS COMING FROM OUR WORKFORCE.

AND SO I DO THINK IT'S GOOD THAT WE'RE, YOU KNOW, REALLY TAKING TO THE VOICES OF THE VULNERABLE INTO ACCOUNT WHEN WE'RE MAKING LAWS.

AND WHEN THE RECOMMENDATIONS COME BACK, WE WILL DEFINITELY BE HEARING FROM OTHER FOLKS AND WE MAY WANT TO, YOU KNOW, UNDERSTAND THEIR CONCERNS, BUT, YOU KNOW, WHAT'S BEING BROUGHT BEFORE US AND WHAT I'M HOPING COMES FROM STAFF IS NOTHING SOMETHING THAT'S, YOU KNOW, WELL, LET ME REPHRASE THAT, SOMETHING THAT'S REALLY GONNA MEET THE NEEDS OF TRYING TO PREVENT WAGE THEFT TO THE GREATEST EXTENT POSSIBLE, WHICH IS SOMETHING THAT TODAY WE'VE HEARD THAT EVERYONE SHARES.

- THANK YOU, ANY FURTHER COMMENTS? SEEING NONE, MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE.

- KOENIG? - NO.

MOTION PASSES FOUR TO ONE.

- THANK YOU, BOARD.

- THANK YOU FOR BEING HERE.

CHAIR, I HAD LET COUNTY STAFF KNOW AND CHAIR, THAT, THAT TO GO, IT'S THREE O'CLOCK AND I HAVE ANOTHER PANEL I'M SPEAKING ON TODAY, WHICH IS WHY I'M PARTICIPATING REMOTELY, BUT JUST WANT TO THANK EVERYBODY FOR THEIR INPUT AND FOR BEING HERE TODAY.

AND I'M SORRY, I CAN'T STAY FOR THE REST OF THE MEETING.

YOU'RE GONNA MISS ALL THE EXCITING ITEMS THAT WE HAVE COMING.

[CHUCKLES] OKAY, SO NOW WE WILL MOVE ON TO ITEM NUMBER 11.

[11. Hold a Tax and Equity Fiscal Responsibility Act Hearing for Park Haven Plaza in connection with the proposed issuance of bonds by the California Municipal Finance Authority in the amount of $16,000,000, and take related actions]

HOLD A TAX AND EQUITY FISCAL RESPONSIBILITY ACT HEARING FOR PARK HAVEN PLAZA IN CONNECTION WITH THE PROPOSED ISSUANCE OF BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN THE AMOUNT OF $16 MILLION AND TAKE RELATED ACTIONS.

- ALL RIGHT, GOOD AFTERNOON, CHAIR, - WELCOME.

- MEMBERS OF THE BOARD.

I'M PETER DETLEF, SO I'M A PRINCIPAL ADMINISTRATIVE ANALYST IN THE COUNTY EXECUTIVE OFFICE.

THE PUBLIC HEARING TODAY UNDER THE TAX, EQUITY, AND FISCAL RESPONSIBILITY ACT, ALSO KNOWN AS TEFRA, IS TO AUTHORIZE THE PROPOSED ISSUANCE OF BONDS IN THE AMOUNT NOT TO EXCEED $16 MILLION BY THE CALIFORNIA MUNICIPAL FINANCING AUTHORITY FOR THE BENEFIT OF 2838 PARK AVENUE LP AS THE BORROWER.

PROCEEDS OF THE BONDS WILL BE USED TO FINANCE AND REFINANCE.

- A LITTLE LOUDER, PLEASE.

- SURE, FINANCE AND REFINANCE, CONSTRUCTION, IMPROVEMENT, AND EQUIPPING OF PARK HAVEN PLAZA, A MULTIFAMILY RENTAL HOUSING PROJECT LOCATED AT 2838 PARK AVENUE IN SOQUEL.

PURSUANT TO IRS CODE, AN ELECTED BODY WITHIN THE TERRITORIAL LIMITS OF THE PROJECT MUST HOLD THE HEARING TO ALLOW THE PUBLIC TO COMMENT ON THE PROPOSED ISSUANCE OF BONDS.

THE COUNTY HAS NO LIABILITY FOR THE REPAYMENT OF THESE BONDS.

HOWEVER, I WILL NOTE THAT THE COUNTY IS A CO-APPLICANT ON THE PROJECT HOMEKEY APPLICATION AND WILL CONTINUE TO HAVE A ROLE IN THE COMPLETION OF THIS PROJECT.

THE PROPER NOTICE FOR THE HEARING HAS BEEN PROVIDED AS REQUIRED, AND REPRESENTATIVES FROM THE FINANCING TEAM, THE DEVELOPER, AND COUNTY STAFF

[05:20:03]

THAT HAVE BEEN WORKING ON THE PROJECT ARE AVAILABLE HERE TODAY TO ANSWER ANY QUESTIONS AS NEEDED.

SO WITH THAT, IT'S RECOMMENDED THAT YOUR BOARD OPEN THE PUBLIC HEARING AND TAKE COMMENT.

- THANK YOU, I WILL NOW OPEN THE PUBLIC HEARING AND SEE IF THERE ARE ANY QUESTIONS FROM THE BOARD.

[PAUSE] SUPERVISOR KOENIG.

- SURE, I SEE THAT WE HAVE MR. NOVIN IN THE AUDIENCE.

I'M JUST, I KNOW THAT THE AVAILABILITY OF THESE FUNDS IS GOING TO ALLOW YOU TO BEGIN DOING SOME WEATHERIZATION OF THE PROJECT.

MAYBE YOU COULD JUST GIVE US A BRIEF UPDATE ON HOW THOSE EFFORTS ARE GOING, IF YOU'RE STILL ON TRACK TO COMPLETE WEATHERIZATION BY JUNE.

- THANK YOU, SUPERVISOR KOENIG AND CHAIR MARTINEZ, BOARD OF SUPERVISORS, IMAN NOVIN, PRESIDENT OF NOVIN DEVELOPMENT AND NOVIN CONSTRUCTION.

YES, WE ARE, I WAS JUST OUT THERE TODAY TAKING A LOOK AT THE WEATHERIZATION PROGRAM.

THAT IS HAPPENING SEPARATE AND INDEPENDENT FROM THE TAX CREDITS.

WE'VE BEEN ABLE TO COME TO AN AGREEMENT WITH THE LENDER AND THE COUNTY IN TERMS OF THE BUDGET TO FINISH THAT WORK.

CURRENTLY, THE STUCCO IS GOING IN.

ALL THE PROTECTIVE WEATHERIZATION WORK IS COMPLETE.

THE WATERPROOFING IS COMPLETE AND SIDING IS ALSO BEING INSTALLED.

SO WE ARE ON TRACK TO FINISH BY JUNE AND...

THAT WILL MAKE THE EXTERIOR OF THE BUILDING LOOK COMPLETE, WHICH IS GOOD PROGRESS.

IN TERMS OF THE TAX CREDIT CLOSING, THIS IS THE NEXT STEP TO APPROVE THE TAX EXEMPT BONDS, WHICH WILL PROVIDE SUFFICIENT EQUITY FOR US TO COMPLETE THE ENTIRE PROJECT.

AND THAT INCLUDES INSTALLING THE ELEVATOR, PUTTING IN THE JOINT TRENCH, PG&E WORK, ELECTRICAL PLUMBING, MORE OF THE BUILDING SYSTEMS THAT NEED TO COME TOGETHER FOR THE BUILDING TO RECEIVE CERTIFICATE OF OCCUPANCY.

AND I UNDERSTAND THAT THE DEMAND FOR TAX CREDITS HAS GONE DOWN A LITTLE BIT GIVEN SOME OF THE FEDERAL TAX CUTS.

WHAT WOULD YOU SAY YOUR LEVEL OF CONFIDENCE IS THAT THE BOND SALE WILL BE SUCCESSFUL FOR THESE? - FAIRLY HIGH.

WE ARE IN ACTIVE CONVERSATIONS WITH TWO TAX CREDIT INVESTORS.

WHILE WE HAVEN'T FINALIZED AN AGREEMENT OR SELECTED AN INVESTOR, WE ARE IN DUE DILIGENCE AND ACTIVE UNDERWRITING WITH THEM, WHICH IS A GOOD SIGNAL.

IT CERTAINLY HAS BEEN A CHALLENGE, NOT JUST FOR US, BUT FOR A LOT OF AFFORDABLE HOUSING DEVELOPERS, GIVEN THE VOLUME OF BOND CAP HAS GONE UP AS A RESULT OF WHAT'S CALLED THE 25% TEST, WHICH EFFECTIVELY DOUBLED THE AMOUNT OF FEDERAL TAX EXEMPT BONDS AVAILABLE IN CALIFORNIA.

SO, YOU KNOW, THIS WAS THE FIRST ROUND THAT THAT HAPPENED.

AND SO THERE WAS JUST A LOT MORE PROJECTS THAT HAD FUNDING AWARDS LOOKING FOR CREDITS THAN PERHAPS DEMAND.

SO WE HAVE FOUND IT TO BE CHALLENGING.

WE'VE TALKED TO 30 PLUS INVESTORS TO NARROW IT DOWN TO THE TWO THAT WE'RE CURRENTLY IN DUE DILIGENCE WITH.

ALL IT TAKES IS ONE.

AND I THINK WE'RE CONFIDENT THAT WE'LL GET THERE.

SO YEAH, FINGERS CROSSED.

- GREAT, THANK YOU.

- YEAH, THANK YOU.

- ANY FURTHER QUESTIONS FROM THE BOARD? I'LL NOW OPEN IT UP TO PUBLIC COMMENTS.

IS THERE ANYBODY IN THE ROOM WHO'D LIKE TO ADDRESS THIS ITEM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - CHAIR, I SEE NO SPEAKERS ONLINE.

- THANK YOU, I'LL NOW RETURN IT TO THE BOARD FOR A MOTION.

- I'LL MOVE THE RECOMMENDED ACTIONS.

- WE HAVE A MOTION FROM SUPERVISOR KOENIG, A SECOND FROM SUPERVISOR HERNANDEZ.

FURTHER DISCUSSION? SEEING NONE, MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR DE SERPA? - AYE.

- HERNANDEZ? - AYE.

[PAUSE] WE'LL NOW MOVE ON TO AGENDA ITEM NUMBER 12,

[12. Hold public hearing, adopt resolution setting Fiscal Year 2026-27 sewer service charges for County Service Area 7 Zone 1 - Boulder Creek, effective July 1, 2026, set a public hearing on June 9, 2026, at 9:00 a.m. or thereafter, to adopt a resolution confirming the sewer service charge report, and take related actions]

HOLD A PUBLIC HEARING, ADOPT A RESOLUTION SETTING FISCAL YEAR 2026-27 SEWER SERVICE CHARGES FOR COUNTY SERVICE AREA 7, ZONE 1, BOULDER CREEK, EFFECTIVE JULY 1, 2026.

SET A PUBLIC HEARING ON JUNE 9TH, 2026 AT 9 A.M. OR THEREAFTER TO ADOPT A RESOLUTION CONFIRMING THE SEWER SERVICE CHARGE REPORT AND TAKE RELATED ACTIONS.

- GOOD AFTERNOON, CHAIR MARTINEZ AND SUPERVISORS.

I'M CAROLYN BURKE, ASSISTANT PUBLIC WORKS DIRECTOR OVERSEEING SPECIAL SERVICES.

AND I'M HERE TO CONTINUE WITH THE PROCEEDINGS TO ESTABLISH SEWER SERVICE CHARGES

[05:25:01]

FOR COUNTY SERVICE AREA 7, ZONE 1 WITH A PUBLIC HEARING TO CONSIDER OBJECTIONS OR PROTESTS TO THE PROPOSED '26, '27 RATE INCREASES.

THE DATE AND TIME OF THIS PUBLIC HEARING WAS SET BY THE BOARD ON MARCH 10TH, 2026, AFTER WHICH STAFF MAILED NOTICES OF TODAY'S HEARING TO ALL AFFECTED PROPERTY OWNERS AND PUBLISHED THE NOTICE IN THE NEWSPAPER.

A COMMUNITY MEETING WAS ALSO HELD ON FEBRUARY 17TH AT THE BOULDER CREEK LIBRARY TO PRESENT THE PROPOSED RATES AND FIELD QUESTIONS FROM AFFECTED RESIDENTS.

THE PROPOSED SERVICE CHARGES FOR FISCAL YEAR '26, '27 REFLECT AN OVERALL RATE INCREASE OF 14.2% FOR CSA 7, ZONE 1.

THIS INCREASE GENERATES A LITTLE OVER 101,000 IN PROJECTED REVENUE, A QUARTER OF WHICH WILL GO TOWARD INCREASED OPERATIONS AND MAINTENANCE COSTS DUE TO HIGHER UTILITY RATES AND INCREASED PERMIT FEES.

ANOTHER QUARTER OF THE REVENUE GENERATED WILL BACKFILL THE CSA'S CAPITAL RESERVES THAT WERE DEPLETED BY THE COST OF REPAIRS TO THE TREATMENT PLANT AFTER THE CZU FIRE.

THE REMAINING 50,000 WILL BE SET ASIDE TO COVER POTENTIAL ADDITIONAL COSTS THAT MAY ARISE DURING CONSTRUCTION OF A NEW EQUALIZATION TANK AT THE TREATMENT PLANT.

WE ARE PLEASED TO REPORT THAT THIS $1.6 MILLION PROJECT TO REPLACE THE FAILING INFRASTRUCTURE IS CURRENTLY UNDERWAY, FUNDED BY A COMBINATION OF CSA FUNDS, GRANT FUNDS, AND BOND FUNDING.

IF THE PROPOSED RATES ARE APPROVED BY YOUR BOARD, A CHARGE REPORT WILL BE PREPARED DETAILING THE SEWER CHARGE FOR EACH PARCEL.

THIS REPORT MUST BE APPROVED BY THE BOARD AND FORWARDED TO THE AUDITOR, CONTROLLER, TREASURER, TAX COLLECTOR BY AUGUST 10TH TO BE INCLUDED IN THE 2026-27 PROPERTY TAX ASSESSMENT ROLL.

IF SO DIRECTED, THE CHARGE REPORT WILL BE AVAILABLE ONLINE ON OR BEFORE MAY 26, WHICH WOULD ALLOW FOR PUBLIC REVIEW TWO WEEKS PRIOR TO THE PROPOSED JUNE 9TH MEETING, PUBLIC HEARING.

THERE ARE 262 PARCELS WITHIN CSA 7 ZONE 1, EACH ENTITLED TO ONE PROTEST VOTE.

PROTESTS MAY BE RECEIVED UP UNTIL SUCH TIME AS THE PUBLIC HEARING IS CLOSED.

BUT AT THE TIME OF THIS PRESENTATION, WE HAVE RECEIVED NO PROTESTS TO THE PROPOSED RATE INCREASE.

WITH THAT, WE REQUEST THAT YOUR BOARD OPEN THE PUBLIC HEARING AND HEAR OBJECTIONS AND PROTESTED TO THE PROPOSED CHARGES, CLOSE THE PUBLIC HEARING, ADOPT THE ATTACHED RESOLUTION SETTING THE FISCAL YEAR 2026-27 SEWER SERVICE CHARGES SET AT JUNE 9TH, 2026 AT 9 A.M.

OR THEREAFTER AS THE DATE AND TIME FOR A PUBLIC HEARING ON THE SERVICE CHARGE REPORTS AND DIRECT THE CLERK OF THE BOARD TO PUBLISH THE NOTICE OF PUBLIC HEARING ONCE A WEEK FOR TWO CONSECUTIVE WEEKS PRIOR TO THE DATE OF THE HEARING.

AND WITH THAT, THAT CONCLUDES MY PRESENTATION.

- THANK YOU, I'LL NOW OPEN THE PUBLIC HEARING.

DO MY COLLEAGUES HAVE ANY QUESTIONS? SEEING NONE, IS THERE ANYONE IN THE ROOM WHO'D LIKE TO SPEAK ON THIS ITEM? ANYONE ON THE PHONE? - I SEE NO SPEAKERS ONLINE, CHAIR.

- THANK YOU, I'LL NOW RETURN IT TO THE BOARD.

- SO MOVED.

WE HAVE A MOTION FROM SUPERVISOR HERNANDEZ, A SECOND FROM SUPERVISOR KOENIG.

- A MOTION...

I WILL JUST COMMENT THAT I...

THIS IS IN MY DISTRICT.

I APPRECIATE THE WORK ON THE EQUALIZATION TANK AND I'M GLAD THAT WE HAVEN'T RECEIVED ANY PROTEST VOTES ON THIS YET.

IT SEEMS LIKE A GREAT USE OF FUNDS.

SO THANK YOU FOR THAT.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE.

WE'LL NOW MOVE ON TO ITEM NUMBER 13.

[13. Hold a public hearing, adopt resolution setting Fiscal Year 2026-27 sewer service charges for County Service Area (CSA) 7 Zone 2 - Boulder Creek, effective July 1, 2026, adopt a resolution authorizing a loan agreement for CSA 7 - Zone 2, and set a public hearing on June 9, 2026, at 9:00 a.m. or thereafter, to adopt a resolution confirming the sewer service charge report, and take related actions]

HOLD A PUBLIC HEARING, ADOPT A RESOLUTION SETTING FISCAL YEAR 2026-27 SEWER SERVICE CHARGES FOR COUNTY SERVICE AREA 7 ZONE 2, BOULDER CREEK, EFFECTIVE JULY 1, 2026.

ADOPT A RESOLUTION AUTHORIZING A LOAN AGREEMENT FOR CSA 7, ZONE 2 AND SET A PUBLIC HEARING ON JUNE 9TH, 2026 AT 9 A.M. OR THEREAFTER TO ADOPT A RESOLUTION CONFIRMING THE SEWER SERVICE CHARGE REPORT AND TAKE RELATED ACTIONS.

- THANK YOU AND GOOD AFTERNOON CHAIR AND SUPERVISORS.

MATT MACHADO, YOUR CDI DIRECTOR.

I'M GONNA BEGIN WITH SOME BACKGROUND ON THIS ONE, JUST SOME HISTORY.

SO THE BIG BASIN WASTEWATER TREATMENT PLANT, ZONE 2, SUSTAINED SIGNIFICANT DAMAGES DURING THE CZU FIRE, WHICH WAS BACK IN AUGUST OF 2020.

IT REMAINED INOPERABLE UNTIL AUGUST OF '23, SO FOR THREE YEARS IT WAS DOWN.

THE SYSTEM WAS OWNED PRIVATELY BY BIG BASIN WATER COMPANY.

THIS SYSTEM TREATS DOMESTIC WASTEWATER FROM THE FALLEN LEAF NEIGHBORHOOD AND IT ALSO SERVES THE CAL FIRE STATION

[05:30:04]

ON JAMISON CREEK.

IN NOVEMBER OF '23, THE SUPERIOR COURT OF THE STATE OF CALIFORNIA APPOINTED SILVER AND WRIGHT LLP AS THE COURT'S RECEIVER FOR THIS BIG BASIN WATER COMPANY.

THE REGIONAL WATER QUALITY CONTROL BOARD AND THE RECEIVER WORKED WITH US TO GET THE SYSTEM BACK UP AND RUNNING, IN AN EFFORT TO FORM A CSA SO THAT THE COUNTY WOULD TAKE OVER THE MAINTENANCE AND OPERATION OF THIS TREATMENT PLANT.

IN APRIL OF 2024, THE FALLEN LEAF NEIGHBORHOOD VOTED IN FAVOR OF THE COUNTY TAKING OVER THE MAINTENANCE AND OPERATIONS OF THIS WASTEWATER TREATMENT SYSTEM.

AND IT WAS ON JULY 1ST OF 2024 THAT WE TOOK THAT OPERATION ON BASED UPON THAT POSITIVE VOTE.

AS PART OF THAT FORMATION OF THAT CSA AND TAKING OVER THE OPERATIONS, WE DID PUT TOGETHER AN ENGINEER'S REPORT THAT DETAILED OUT THE BUDGET AND THE COSTS FOR THE SYSTEM.

AT THE TIME, WE HAD 29 PARCELS THAT WERE PART OF THIS NEIGHBORHOOD AND 11 OF THOSE WERE EXISTING HOMES, REBUILT HOMES, SO SEWER CUSTOMERS.

AND AT THE TIME, OUR BUDGET AND ENGINEER'S REPORT MADE THE ASSUMPTION THAT WE WOULD SEE TWO NEW BUILDS EVERY YEAR FOR THE COMING YEARS, WHICH WOULD SUPPORT THE BUDGET ASSUMPTIONS AT THE TIME.

IN ADDITION TO THAT ASSUMPTION AND TO THE BUDGET CHALLENGES THAT ENSUED, IT WASN'T UNTIL MARCH OF '25 THAT THE RECEIVER LET US KNOW THAT THERE WAS PG&E UTILITY BILLS THAT HADN'T BEEN SHARED PRIOR.

THEY WERE SHARED AND IT CONTINUED OUR BUDGET CHALLENGES.

AND SO WITH THAT, AND BY THE WAY, THE ANNUAL UTILITY RATES OR BILLS ARE ABOUT $18,000 A YEAR, SO IT WAS A PRETTY SIGNIFICANT IMPACT TO OUR BUDGET.

SO WITH THAT INITIAL ASSUMPTION THAT MORE HOMES WOULD BE BUILT TIMELY AND WITH THE NEW KNOWLEDGE THAT THIS UTILITY BILL, WHICH WAS UNKNOWN TO US AT THE TIME OF TAKING IT OVER IS NOW A PART OF THE BUDGET, WE'VE BEEN IN A BUDGET CHALLENGE.

AND SO AS PART OF THIS PROCESS THIS YEAR, WE DID PROPOSE A SIGNIFICANT RATE INCREASE AND THE DRIVERS FOR THAT RATE INCREASE ARE AS I DESCRIBED.

I WON'T GET INTO THAT RATE INCREASE IN TOO MUCH DEPTH, NOR WILL I GET INTO THE DETAILS OF THAT LOAN AGREEMENT BECAUSE THE COMMUNITY HAS SPOKEN AND THEY OVERWHELMINGLY HAVE PROTESTED THIS RATE INCREASE.

IN FACT, THE VAST, VAST MAJORITY, WE HAD NINE PROTESTS OUT OF THE 11.5 OR SO CUSTOMERS.

ONE OF THEM IS AN ADU, THAT'S WHERE THERE'S THE HALF IN THERE.

AND SO THIS PROPOSED RATE INCREASE TODAY HAS FAILED.

AND SO WE'LL BE MODIFYING THE RECOMMENDATIONS TODAY.

AND ADDITIONALLY, JUST FOR YOUR INFORMATION, NOT AS PART OF THE ACTION TODAY, BUT TO KEEP THE BOARD FULLY INFORMED.

ON MAY 19TH, WE PLAN TO BRING A NEW ITEM BACK AS KIND OF A FOLLOW-UP TO THIS FAILURE OF THE RATE INCREASE, WHICH WILL INCLUDE A CPI INCREASE, A BASIC CPI INCREASE, WHICH WAS A PART OF THE ORIGINAL FORMATION DOCUMENTS.

THAT'S AT THE 3% RATE.

AT THAT TIME, WE WILL RECOMMEND YOUR BOARD TO SET A PUBLIC HEARING FOR THE END OF JUNE SO THAT WE CAN ASK YOUR BOARD TO ADOPT A CHARGE REPORT THAT WILL INCLUDE THE EXISTING RATES PLUS CPI ONLY.

AND SO THAT'S OUR DIRECTION GOING FORWARD.

THE MODIFIED RECOMMENDED ACTIONS TODAY IS SIMPLY THE FIRST TWO ITEMS, WHICH ARE TO OPEN A PUBLIC HEARING, HEAR OBJECTIONS OR PROTESTS, IF ANY, TO THE PROPOSED CHARGES, AND TO CLOSE THE PUBLIC HEARING UPON ITS CONCLUSION.

I WILL LASTLY ADD THAT SOME OF THE HOMEOWNERS WERE HERE TODAY EARLIER, BUT THEY COULDN'T STAY.

THEY DID HAND ME TWO MORE PROTESTS, WHICH GOT US TO THE NINE.

BUT JUST FOR THE RECORD THAT WE HAVE COMMUNICATED CLEARLY WITH THE COMMUNITY, WE'VE MET WITH THEM MULTIPLE TIMES.

WE FEEL LIKE WE'VE GOT ALL THE INPUT THAT THEY WANT TO PROVIDE FOR YOU TODAY.

SO THERE'S NOTHING LEFT TO BE SAID FROM WHAT I'M AWARE OF.

SO THAT'S WHERE WE'RE AT.

JUST OPEN THAT PUBLIC HEARING, CLOSE THE PUBLIC HEARING.

AND THIS ITEM'S OVER FOR TODAY.

AND WE'LL BE BACK IN THE MIDDLE OF MAY TO BRING A REVISED ITEM THAT JUST CONSIDERS A CPI INCREASE.

STAFF'S AVAILABLE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

I'LL NOW OPEN THE PUBLIC HEARING.

ARE THERE ANY QUESTIONS FROM THE BOARD? SUPERVISOR KOENIG.

- SO IS THE CSA GONNA BE ABLE TO PAY ITS PG&E BILLS WITHOUT THE INCREASE? - WELL, YES.

IN OUR MINDS, THE PG&E BILL WILL BE OUR HIGHEST PRIORITY.

WE HAVE TO KEEP THE ELECTRICITY ON.

WE WILL BE SCALING BACK ALL OPERATIONS.

[05:35:04]

THERE WILL BE SOME SIGNIFICANT RISKS GOING FORWARD.

THAT'S WHAT I WOULD LEAVE IT AS.

BUT YES, THE PG&E BILL WILL BE PAID.

YES.

- AND THEN IF ANY OF THOSE RISKS SHOULD COME TO...

FRUITION, THAT'S NOT THE RIGHT WORD, BUT COME TO PASS, WOULD IT COULD THERE BE AN EMERGENCY ASSESSMENT? OR I MEAN, HOW, OR DOES THE SYSTEM SIMPLY FAILURE? FAIL? WHAT? - WE... - WELL, HOW DOES BAD MANAGEMENT PLAY OUT? - RIGHT, - SO, I MEAN, I'M NOT ON YOUR PART, BUT I'M...

OR I'M SAYING FISCAL IRRESPONSIBILITY PLAY OUT HERE.

- IT'S A VERY GOOD QUESTION.

AND I HAVE TO BE HONEST, WE DON'T HAVE ALL THE ANSWERS.

THERE'S STILL A LOT OF UNKNOWN.

I WILL TELL YOU THOUGH, THAT WE WILL BE COORDINATING WITH THE STATE OF CALIFORNIA IMMEDIATELY TO TRY TO STRATEGIZE A LEAN BUDGET AND A WAY TO SURVIVE THE NEXT COUPLE OF YEARS UNTIL MORE HOMES ARE BUILT.

AS I MENTIONED, ONE OF THE ASSUMPTIONS GOING INTO THE ORIGINAL BUDGET TWO YEARS AGO WAS THAT MORE PEOPLE WOULD REBUILD.

AND THAT HASN'T HAPPENED.

WE'RE HOPEFUL THAT IT WILL HAPPEN.

AND THAT WILL INCREASE THE REVENUE TO POTENTIALLY SOLVE THIS BUDGET PROBLEM.

WITHOUT THAT, THE BUDGET WOES WILL CONTINUE.

AND THOSE UNKNOWN RISKS WILL ABSOLUTELY COME TO LIGHT.

AND WE WILL SHARE WITH THE BOARD THOSE CONSEQUENCES.

- AND SO JUST TO... OH, SORRY, ANOTHER QUESTION.

[INAUDIBLE] SO JUST TO UNDERSCORE THE OPERATIONS OF THE WASTEWATER TREATMENT WILL CONTINUE IN THIS INTERIM PERIOD WHILE WE'RE STILL SEEKING A FUNDING FIX? - YES, IN A MORE MINIMIZED FASHION.

AND I DO BELIEVE THAT WE WILL BE IN A BIT OF CONFLICT WITH OUR STATE PERMIT.

AND WE WILL WORK VERY CLOSELY AND VERY TRANSPARENTLY WITH THE STATE, THE REGIONAL WATER QUALITY CONTROL BOARD TO JUST COMMUNICATE, BECAUSE I DO BELIEVE WE WILL BE OUT OF COMPLIANCE VERY QUICKLY.

[PAUSE] WELL, THAT CONCLUDES MY QUESTION.

SUPERVISOR DE SERPA? - THIS ISN'T SOMETHING I'VE FOLLOWED CAREFULLY JUST BECAUSE IT'S NOT MY DISTRICT.

I MEAN, I'VE SEEN A COUPLE OF THE NEWS STORIES ABOUT IT.

SO I FEEL LIKE I KNOW SOMETHING.

BUT...

I MEAN, THERE ARE REALLY STRICT ENVIRONMENTAL RULES.

SO IF WE'RE JUST PROVIDING A MINIMAL AMOUNT OF SERVICE THERE, YOU SAID YOU TALKED ABOUT RISKS.

SO WILL THERE BE SPILLS INTO CREEKS? OR LIKE WHAT KIND OF THINGS ARE YOU TALKING ABOUT IN TERMS OF RISK? - RIGHT.

WELL, I THINK THE, YOU KNOW, THE WAY WE STARTED THE CONVERSATION ABOUT THE PG&E BILLS, THAT'S ABSOLUTELY CRITICAL, KEEPING THE PUMPS ON.

- NEXT LEVEL OF IMPORTANCE WILL BE KEEPING THE SYSTEM PHYSICALLY OPERATIONAL.

AND THEN PROBABLY THE THIRD PRIORITY IS, YOU KNOW, SOME OF THE STATE COMPLIANCE, STATE PERMITTING, STATE REPORTING.

SOME OF THOSE THINGS HAVE SIGNIFICANT COSTS AND WE'LL HAVE TO MANAGE THEM THE BEST WE CAN.

[PAUSE] - IS THERE ANY...

GRANTS OR PROGRAMS FOR SITUATIONS LIKE THIS THAT WE COULD CALL UPON? OR I'M GUESSING MAYBE WE'VE ALREADY INVESTIGATED THAT.

- YEAH, IT'S A GOOD QUESTION.

WE HAVE LOOKED INTO THAT.

I SPOKE WITH THE STATE A FEW WEEKS BACK AND FOR MAINTENANCE AND OPERATIONS, THERE REALLY IS NO OPPORTUNITY FOR GRANT FUNDING.

AND SO I DON'T THINK WE'LL BE SUCCESSFUL WITH FINDING OUTSIDE FUNDS.

SO THAT'S PROBABLY WHERE WE'LL BE.

[PAUSE] - ANY OTHER FURTHER QUESTIONS FROM THE BOARD? - I HAD ONE QUESTION.

FOR THE RECORD, BECAUSE THIS IS A PUBLIC HEARING, IS IT POSSIBLE MR. MACHADO FOR YOU TO STATE THE RESULTS OF THE VOTE BECAUSE THE BOARD NEEDS A BASIS TO MAKE THE FINDING THAT IT FAILED? - RIGHT, AND SO AS I MENTIONED EARLIER, NINE PROTEST VOTES WERE RECEIVED OUT OF THE 11 OR 11.5 OR 12, WHAT DO WE CALL IT? - IT'S THE NUMBER OF PARCELS.

SO, YEAH. - IT'S THE 12.

- 12.

- SO NINE PROTESTS OUT OF 12 PARCELS.

I'LL NOW OPEN TO PUBLIC COMMENT.

IS THERE ANYONE IN THE ROOM WHO'D LIKE TO SPEAK ON THIS ITEM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - I SEE NO SPEAKERS ONLINE, CHAIR.

I'LL NOW RETURN TO THE BOARD.

- SO, MOVED.

- LET ME MAKE A FEW...

OH, WE HAVE A MOTION FROM SUPERVISOR HERNANDEZ.

IS THERE A SECOND? - WELL, I DON'T THINK THAT ANY MOTION IS REQUIRED BECAUSE ALL WE'RE DOING IS OPENING AND CLOSING THE PUBLIC HEARING.

- I THINK HIS MOTION WILL BE RECOMMENDED ACTION ONE AND TWO.

- THE ACTION.

- IS THAT CORRECT?

[05:40:02]

- I THINK...

I THINK YOU'VE ALSO GOT A...

SOMEONE'S GOT TO MAKE A MOTION...

TO ESTABLISH THAT THE [STUTTERING] ASSESSMENT FAILED.

- YEAH.

- WELL, THE MOTION ALSO WILL INCLUDE THAT THE ESTABLISHED THE MOTION FAILED.

- YES.

THAT THE REQUESTED ASSESSMENT FAILED.

- THAT THE REQUESTED ASSESSMENT FAILED.

- AND DOES THE CLERK UNDERSTAND THE MOTION AND THE COMPONENTS OF THE MOTION THAT ARE INCLUDED AND NOT INCLUDED? - YES, MY UNDERSTANDING IS THAT WE'VE OPENED AND CLOSED THE PUBLIC HEARING AND THAT THE REQUESTED ASSESSMENT HAS FAILED AS MOVED BY SUPERVISORS KOENIG AND SECONDED BY SUPERVISOR, NO, BACKWARDS...

AS MOVED BY SUPERVISOR HERNANDEZ AND SECONDED BY SUPERVISOR KOENIG.

JUST A QUICK COMMENT THAT...

I WANT TO, JUST APPRECIATE THE WAY THAT CDI HAS WORKED WITH MY OFFICE IS ALSO WITH THE NEIGHBORS THROUGHOUT THE COURSE OF THIS TO COME UP WITH A SOLUTION TO THIS WASTEWATER TREATMENT PLANT.

YOU KNOW, IT IS A RESULT OF A NATURAL DISASTER THAT HAPPENED A NUMBER OF YEARS AGO.

AND WE'RE STILL TRYING TO SHORE UP THE RESILIENCY OF CERTAIN NEIGHBORHOODS IN THE SAN LORENZO VALLEY.

AND SO, YOU KNOW, I AM HAPPY TO WORK WITH YOUR OFFICE AND WITH THE STATE.

I'M SURE THE STATE DOESN'T WANT TO TAKE THIS OVER AGAIN TO FIGURE OUT WHAT OUR NEXT STEPS CAN BE SO WE CAN ENSURE THAT THIS ACCESS IS AVAILABLE TO OUR RESIDENTS.

SO THANK YOU FOR THAT.

- SO WE HAVE A MOTION AND A SECOND.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR DE SERPA? - AYE.

- HERNANDEZ? - AYE.

WE'LL NOW MOVE ON TO ITEM NUMBER 14.

[14. Hold public hearing to consider proposed Fiscal Year 2026-27 benefit assessment/service charge reports for various County Service Areas, and take related actions]

HOLD A PUBLIC HEARING TO CONSIDER THE PROPOSED FISCAL YEAR 2026 BENEFIT ASSESSMENT / SERVICE CHARGE REPORTS FOR VARIOUS COUNTY SERVICE AREAS AND TAKE RELATED ACTIONS.

I'M CHRISTINE HICKS WITH PROGRAM ADMIN OF PUBLIC WORKS CDI.

- GOOD AFTERNOON, CHAIR.

- GOOD AFTERNOON, BOARD.

AND AS THE CHAIR MENTIONED, THIS ITEM.

- COULD YOU BRING THE MICROPHONE A LITTLE BIT CLOSER? - OOH, WIRELESS.

JUST TO CONFIRM THE ROAD COUNTY SERVICE AREA ASSESSMENTS AND SERVICE CHARGE RATES FOR FISCAL YEAR 2026, 27.

AND THE ANNUAL BENEFIT ASSESSMENT PROCESS INVOLVES THE STAFF REACHING OUT TO THE ROAD COUNTY SERVICE AREAS TO INQUIRE IF THEY WANT TO HAVE NO CHANGE TO THEIR ASSESSMENT.

IF THEY WANT TO HAVE AN ELECTION OR IF THEY WOULD LIKE TO HAVE A CONSUMER PRICE INDEX INCREASE TO THEIR RATES.

ON APRIL 14TH OF THIS YEAR, THE BOARD MET AND SET TODAY FOR THE PUBLIC HEARING WITH REGARD TO THOSE CSAS, WHICH HAVE EITHER NO CHANGE OR A CPI INCREASE.

AND THIS BOARD- BOARD ITEM PROVIDES THE RESOLUTIONS FOR THOSE ROAD CSAS, WHICH HAVE CHOSEN CPI INCREASES AND CONFIRMS THE BENEFIT ASSESSMENT RATES FOR THE OTHER CSAS, WHICH HAVE OPTED FOR NO CHANGE.

THE TOTAL CPI INCREASE FOR THE LISTED CSAS WILL BE JUST OVER $10,000 INCREASED REVENUE AFFECTING 18 COUNTY SERVICE AREAS THROUGHOUT THE COUNTY, PROVIDING INCREASED REVENUE FOR ROAD MAINTENANCE AND REPAIRS FOR OVER 2,200 PARCELS THROUGHOUT THE COUNTY.

WE'RE AVAILABLE TO ANSWER ANY QUESTIONS.

- ARE THERE ANY QUESTIONS FROM THE BOARD? SEEING NONE, I'LL NOW OPEN IT UP TO PUBLIC COMMENT.

IS THERE ANYONE IN THE ROOM WHO'D LIKE TO SPEAK ON THIS ITEM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - I SEE NO SPEAKERS ONLINE, CHAIR.

- I'LL NOW RETURN TO THE BOARD FOR A MOTION.

- SO, MOVED. - SUPERVISOR DE SERPA. [CHUCKLES] - YOU WANT A MOTION? - YES.

[LAUGHING] - WE HAVE A MOTION FROM SUPERVISOR DE SERPA.

AND A SECOND FROM SUPERVISOR... - SORT OF, YEAH.

TO SORT OF A MOTION.

YES, I MAKE A MOTION.

- MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR DE SERPA? - AYE.

- HERNANDEZ? - AYE.

[RUSTLES] WE'LL NOW MOVE ON TO ITEM NUMBER 15.

[15. Hold public hearing to consider proposed Fiscal Year 2026-27 benefit assessments for County Service Area No. 13A, Oak Flat, continue the public hearing to June 30, 2026, to allow for tabulation and certification of the ballots, and take related actions]

HOLD A PUBLIC HEARING TO CONSIDER THE PROPOSED FISCAL YEAR 2026 BENEFIT ASSESSMENTS FOR COUNTY SERVICE AREA NUMBER 13A, OAK FLAT.

CONTINUE THE PUBLIC HEARING TO JUNE 30TH, 2026 TO ALLOW FOR TABULATION AND CERTIFICATION OF THE BALLOTS AND TAKE RELATED ACTIONS.

- THIS CSA IS LOCATED IN LOS GATOS,

[05:45:01]

CONSISTS OF 18 CHARGED PARCELS.

THEY'RE CURRENTLY ASSESSED AT $1,500 PER PARCEL FOR AN ANNUAL ASSESSMENT FOR THE ENTIRE CSA OF $27,000.

THE CSA IS PROPOSING TO INCREASE THAT ASSESSMENT BY 500 SO THAT EACH PARCEL WILL BE ASSESSED 02,000 ANNUALLY.

THIS WILL INCREASE THE REVENUE BY 9,000 PER YEAR TO INCREASE AVAILABLE FUNDS FOR MAINTENANCE AND REPAIRS.

THE BALLOTS WERE MAILED OUT AFTER THE MARCH 10TH BOARD MEETING WHEN THE BOARD APPROVED THE ENGINEER'S REPORTS AND RELATED ITEMS. THE RECOMMENDED ACTION FOR THE BOARD ARE TO OPEN THE PUBLIC HEARING, REQUEST THE SUBMITTAL OF THE BALLOTS, CLOSE THE PUBLIC COMMENTS PORTION OF THE HEARING AND CONTINUE THE PUBLIC HEARING TO JUNE 30TH TO ALLOW FOR TABULATION AND CERTIFICATION OF THE VOTES.

I'LL NOW OPEN THE PUBLIC HEARING.

IS THERE...

ARE THERE ANY QUESTIONS FROM THE BOARD? SEEING NONE, IS THERE ANYONE IN THE ROOM WHO'D LIKE TO SPEAK ON THIS ITEM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - NO SPEAKERS ONLINE, CHAIR.

- I'LL NOW RETURN IT TO THE BOARD FOR A MOTION.

- SO MOVED.

- MOTION FROM SUPERVISOR HERNANDEZ.

- I'LL SECOND.

- SECOND FROM SUPERVISOR DE SERPA.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE.

WE'LL NOW MOVE ON TO ITEM NUMBER 16.

[16. Hold public hearing to consider proposed Fiscal Year 2026-27 benefit assessments for County Service Area No. 36 Forest Glen’s Norman Zone F, continue the public hearing to June 30, 2026, to allow for tabulation and certification of the ballots, and take related actions]

HOLD A PUBLIC HEARING TO CONSIDER THE PROPOSED FISCAL YEAR 2026-27 BENEFIT ASSESSMENTS FOR COUNTY SERVICE AREA NUMBER 36, FOREST GLEN'S NORMAN ZONE F.

CONTINUE THE PUBLIC HEARING TO JUNE 30TH, 2026 TO ALLOW FOR TABULATION AND CERTIFICATION OF THE BALLOTS AND TAKE RELATED ACTIONS.

THIS CSA IS LOCATED IN APTOS AND IS CONSISTING OF 14 CHARGED PARCELS IN THE NORMAN ZONE.

EACH ARE CURRENTLY ASSESSED $132.59 PER PARCEL.

THE CSA HAS PROPOSED TO INCREASE THAT ASSESSMENT FOR FISCAL YEAR 26-27 ONLY TO AN AMOUNT OF $1,900 PER PARCEL AND THEN THEREAFTER DROP INTO AN ONGOING ASSESSMENT OF $400 PER PARCEL.

AND THE REASON FOR THAT ONE TIME INITIAL INCREASE OF AN ADDITIONAL $1,500 IS TO ALLOW NORMAN ZONE F TO PAY FOR THEIR PART OF RECENT STORM DAMAGE REPAIRS.

BALLOTS WERE MAILED TO THE AFFECTED PARCELS AFTER THAT BOARD MEETING ON MARCH 10TH.

AND IF PASSED, THE ELECTION WOULD RESULT IN ADDITIONAL ANNUAL ASSESSMENT OF 24,000 FOR NORMAN ZONE IN '26, '27 AND EACH YEAR THEREAFTER FOR AN INCREASE OF 5,600.

STAFF IS AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE.

I'LL NOW OPEN THE PUBLIC HEARING.

ARE THERE ANY QUESTIONS FROM THE BOARD? - WHERE IS THIS EXACTLY IN APTOS? I'VE NEVER HEARD OF THIS AREA.

- HMM, I DON'T HAVE THE MAP IN FRONT OF ME UNLESS... - OKAY.

- BUT I CAN LOOK IT UP TO YOU. - I CAN LOOK IT UP, I JUST HAVE NEVER HEARD OF NORMAN.

- IT'S SMALL, YEAH.

- FOREST GLEN NORMAN.

THAT'S MY ONLY QUESTION.

- ANY FURTHER QUESTIONS FROM THE BOARD? SEEING NONE.

IS THERE ANYONE IN THE ROOM WHO'D LIKE TO SPEAK ON THIS ITEM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - I SEE NO SPEAKERS ONLINE, CHAIR.

I'LL NOW RETURN TO THE BOARD FOR A MOTION.

- I'LL MAKE A MOTION TO APPROVE.

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

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR HERNANDEZ? - AYE.

- WE'LL NOW MOVE ON TO ITEM NUMBER 17.

[17. Consider policy regarding the disruption of remote access during Ralph M. Brown Act meetings as required by Government Code section 54953.4, and take related actions]

CONSIDER A POLICY REGARDING THE DISRUPTION OF REMOTE ACCESS DURING RALPH M. BROWN ACT MEETINGS AS REQUIRED BY GOVERNMENT CODE SECTION 54953.4 AND TAKE RELATED ACTIONS.

- GOOD AFTERNOON, CHAIR AND MEMBERS OF THE BOARD.

TODAY'S ITEM RESPONDS TO SENATE BILL 707, WHICH TAKES EFFECT JULY 1ST, 2026.

THIS LAW REQUIRES LEGISLATIVE BODIES TO PROVIDE REAL-TIME PUBLIC ACCESS TO MEETINGS THROUGH TWO-WAY PHONE OR AUDIO-VISUAL PLATFORMS. IT ALSO REQUIRES EACH BODY TO ADOPT A POLICY OUTLINING WHAT TO DO IF REMOTE ACCESS IS DISRUPTED.

THE POLICY BEFORE YOU SETS OUT CLEAR PRACTICAL STEPS, MONITORING THE REMOTE ACCESS SYSTEM DURING MEETINGS PAUSING PROCEEDINGS IF THERE'S A DISRUPTION, MAKING A GOOD FAITH EFFORT TO RESTORE SERVICE FOR UP TO ONE HOUR, AND ESTABLISHING HOW THE MEETING MAY PROCEED

[05:50:03]

IF SERVICE CAN'T BE RESTORED.

APPROVAL OF THIS POLICY WILL ENSURE THE COUNTY REMAINS COMPLIANT WITH THE STATE LAW WHILE CONTINUING TO SUPPORT TRANSPARENCY AND THE ORDERLY CONDUCT OF YOUR MEETINGS.

I'M HAPPY TO ANSWER ANY QUESTIONS.