 to the 2019-2020 budget hearings on June 17, 2019 I'm gonna call the meeting to order and ask the clerk to call the roll. Supervisor Leopold. Here. Friend. Here. Caput. McPherson. Chair Coonerty. Here. Great. Now I'm gonna ask you to join me in a moment of silence in the Pledge of Allegiance. Are there any late additions or additions or deletions to the agenda? Yes there's one correction item number 26 the item should read action on the consent agenda item number 31. Okay great. Now's the opportunity for oral communications as an opportunity for members of the public to speak to us about items that are not on our agenda today. Is there anyone who'd like to speak to us? Seeing none I'll bring it back to the board. This is moving on to item number five which is opening remarks and a public hearing. This is our CAO's chance to let us know about this budget. I've heard it's an important day and it must be because our information service director is wearing a suit today so it's it's a big day. So Mr. Plasios. Yes he wears a suit whenever he's asking for money. So it's a good good practice. Chair Coonerty members of the board your session this morning opens the 2019-2021 budget hearings. So it's a it's a two-year budget for the Ferry Verstheim for the county. The documents before you today include the CAO's proposed budget. It includes the accounting item detail. In addition you have the supplemental budget which includes additional financial actions reports the unified fee schedule continuing agreements list. Our office will be presenting any last day reports including a financial update and concluding actions prior to the close of the budget on June 25th and as always all of the budget documents are posted on the county of Santa Cruz website. So let me give you an overview of our presentation today. I'm going to cover county initiatives and the operational plan which coincides with my own work plan that the board has endorsed. Our county budget officer will give an overview of the budget. She'll also go into the two year two years of this budget 2019-2020 which is the recommended budget and then 2021 2020-2021 which is the projected budget overview. And so this is the very first time the county has done a two-year budget. According to state law we are only allowed to adopt the 1920 so that's the one that you'll be taking official legal action on the 25th. The 2021 is really a very detailed projection. I think it's a good practice though and in effect we have taken it very seriously as a county and our departments have as well because it is give us that longer outlook which is very necessary I think to long term planning. And then finally I will come back and talk about the challenges and opportunities facing the county. We'll start with the county initiatives and operational plan. So this is the work plan that I presented to you two years ago and which your board endorsed and very proud to say that we've accomplished the first three of those items already. Our strategic plan which took a year to develop is a six year document which the board adopted last year and includes a vision, mission, values and also goal focus areas. The focus areas there's six of them. Each one of the focus areas has four goals. That really is the guiding document, the North Star for the county. This year we are presenting for the very first time our operational plan and our two-year budget which are companion documents which really implement that strategic vision. And then the ongoing efforts which will be really beginning this year is or next year is a performance evaluation, the evaluating part. We really haven't begun this effort. We're just starting it in the fiscal year. That's the third year of my being CAO which I indicated when I started the job. That would be the third year effort we will be doing in this coming year. A lot of training with our staff and some pilot projects. As I have mentioned before there are some departments that are more advanced in performance evaluation and others that are just beginning but as a whole county we will be undertaking performance evaluation in this coming year. And we've already started our Primo effort which is our continuous process improvement with pilot projects this year and we'll be further rolling that out in the coming year. So our strategic and operational plan as I mentioned there are six focus areas. Each focus area has four overarching goals. The planning cycle is that the strategic plan drives everything. Our operational plan and our two year budget are companion documents which implement the strategic vision and then next year we will begin the effort to train our staff in performance measurement and we are continuing to implement pilot projects and continuous process improvement. I will mention that this has been a huge lift for the county. These are not minor efforts. These are major efforts. It's a change in county culture and it's really been a monumental effort by our departments to do this and I'm very proud of them because they produce really really first rate documents that we can be very proud of and especially given that the first time that we've done them. So the operational plan. So this is a concrete two year plan that details the county's first step in achieving its vision. Countywide strategies indicate what we will do to achieve county goals while department objectives and key steps say how this will be done. Departments will be highlighting their operational plan objectives throughout the budget hearing presentation. So each budget presentation will include some highlights of their operational goals and then they're of course open to talk to you more in depth about those goals. And then on the 25th there will be a overview of the entire operational plan by the CAO's office. And you can see how they relate in this chart the strategic plan vision mission values who we are what we value what we believe in what our goals. And then you can see the operational plan is what we will do and how we will do it and how it's funded in the budget. The operational plan was a very major effort started last September with a steering committee and subcommittees of county staff. We had training on smart objectives in October in November December we started drafting objectives and key steps. January we gave feedback continued to offer to refine the elements in February March in April we rolled out the plan to the community met with focus groups and did some community outreach and then we're now in the process of having the board review it and the board adopted. The community engagement has been and continues to be an important component in developing the strategic and operational plan draft strategies were presented to over 20 boards and commissions and it's six community open houses held in North Mid and South County. And additionally seven focus groups were held with key informants community representatives and subject matter expertise and strategic plan focus areas. And again for a first step I'm very proud of our staff for what they have done to achieve what I think is a very very good document and a good starting point for the county in terms of developing an operational plan which ties our overall strategic goals to our budget. So this is just an example of more detail on the operational plan and this is an example of an objective. It's a number 64 objective number 64 and it's in the health services agency you'll actually find it in the operation plan on page 30 and on page 146 and it says by June 2021 health services agency will increase access to health care by decreasing the wait time for the next available appointment from an average of 1.3 days down to zero days. So it's a very concrete smart objective which is exactly what we want and then if you were to turn to page 173 in the budget you'll actually find this which is the salaries and benefits and details how we're going to implement and achieve that objective and it says the cost which is $1.7 million to achieve that objective. So we understand that at the present time the operational plan and the budget that the link between those is not what we exactly hope to achieve in the future. It's insufficient right now but it's a first step and in the future we hope to have much more explicit ties between the goals and objectives and the operational plan and the budget. And the way that we're going to do that is through program budgeting. Right now our budget is basically broken down by department and division then that's been the way the county has always done that done its budget. In the future we want to break down the divisions into actually programs and do a true program budget for the for the board to get into more detail. That takes a lot of work and that will be coming forthcoming and that will allow us to more explicitly tie the objectives that are outlined in the operational plan to the budget. Now in this case you can actually see a very explicit tie between the objective and the budget but we want more of that. We don't have that on all places when we recognize that this is a first step and then the next step after we do program level budgeting is to do performance evaluation and we really I know there's impatience to get to that point by the board and I fully understand that but we're not we haven't even really begun performance evaluation. We haven't even trained our staff because again these were huge lifts doing our strategic plan doing our operation plan doing a two year budget. We're all very intensive efforts involving a lot of staff time. And so now the next step is to start doing the performance evaluation which will start with training of our staff and then we will start doing pilot projects in the coming years. I will say that in some of our departments they are already way ahead on this performance evaluation in particular parts of the probation department parts of the human services department. They have examples of very good performance evaluation efforts but as a county as a whole we have really not even begun that effort and that's program level budgeting tied to our operation plan and then tied to performance evaluation will be the way that we will be going in the future. So I wanted to talk besides the process about our fiscal stewardship which the board has set as a goal and which you have had many achievements. Over the past number of years the board has given us direction and we have tripled our reserves. We have met the board's goal of a 10% reserve of revenues which is very good and was also a big lift. We have improved our credit rating and we have reduced our pension obligations and our structural imbalance to less than 1% of expenditures. We still use some fund balance to balance our budget which is basically salary savings and reversions but below 1% is actually very prudent and very something we should be proud of. We have also controlled employee growth. Our pre-recession workforce was over 2600 employees and we're still below 2500 employees even though we've expanded services significantly in certain areas we still have less employees than we did prior to the recession 2009. We have also begun to tackle deferred maintenance issues with some improvements at our main facilities at Emeline, Freedom Campus, Brommer Street and here at 701 Ocean. We've had some major achievements such as our solar installations which has reduced energy costs and our expansions of our health clinics. We've also augmented services even though we have been very prudent in our use of resources and our staffing we still have had some major achievements. We've had programs such as the Nurse Family Partnership, Thrive by Three, the Whole Person Care Program and MediCal Drug Expansion which have worked to improve our community well-being and health. We have responded to the needs of the homeless by expanding our shelter and working to alleviate homelessness among our youth and we have made significant investments in our public safety needs with new facilities at Roundtree and Blaine Street and the Sovereign Center all designed to reduce recidivism and transition offenders back into our community in a positive way. So I think it's something very proud and this is just a sample obviously folks are aware of all the things that we have achieved and expanding our services but I think it's something for the board to be very proud of that at the same time you've increased your reserves, you've controlled employee growth, you've also made major expansions and program services to the community. It's a big achievement and I think something we should celebrate that often we overlook but yet it's pretty amazing what we've been able to achieve and the credit goes of course to our staff. I'm very proud of our staff. We have a first-rate staff and I've worked in public service for over 30 years. I've worked in numerous organizations and we have a first-rate staff here. I'm very proud of them and so the idea that we've augmented services while still being very fiscally prudent is an achievement that we should all be proud of. I will now turn it over to the county budget manager who will go over the nitty-gritty details of our budget. I know this is the exciting part that you all looking forward to. Okay good morning members of the board. So before you is our, okay closer. Before you is of course the two-year proposed budget for 2019 through 2021 presented to you today as a collective effort from the departments based on our best estimates to meet the requirements for county services and programs over the next two years. Local governments throughout California face tremendous fiscal pressure and we are very pleased to say we are not looking at any major cuts to either programs or staff as is in the case in some other jurisdictions. This budget also takes into consideration much of the community feedback we receive during the strategic and operational planning process by allocating resources consistent with identified objectives as part of our 2019-21 operational plan. Okay and here is an overview of the two-year budget. The 2019-20 budget consists of about 827 million dollars with a decrease of about 45 million primarily from an increase of 18 and a half million for the general fund to maintain operations offset by a decrease of 63.9 million for all other funds and those are primarily from the completion of projects within the road fund, housing fund and other capital projects. Staffing reflects an increase of 53.56 funded positions and I'll go into further details in the staffing a little later. The county budget for 2021 totals 771 million dollars with a decrease of 55 million from 1920 primarily from an increase of 11.8 million for the general fund to maintain status quo operations offset by a decrease of 67 million anticipating the completion of various one-time projects funded again from those various other funds. Staffing reflects a decrease of 4.75 positions and I'll go into those in further detail. So there's four primary taxes that make up 90% of the county's discretionary revenues included in the general fund and here are the revenue assumptions for the next two years based on information available today. The 2019-21 proposed budget anticipates declining growth in our property taxes from 4.5% to 3.5%. Limited growth in our cannabis business tax based on actuals to date and growth future of about 5%. Minimal growth in our sales tax we've had seen some growth today budget over budget which resulted in about a 4% growth for next year declining to 3.5% and that the 3.5% growth in the second year is primarily because sales tax is flattening out it's primarily from the increased businesses that are opening. We've had changes in the Aptos village and we're anticipating some openings of some other businesses in that second year. And then of course our transient occupancy tax or hotel tax we're anticipating about a 5% growth and all of those support our estimated expenditures. So here you can see the overall general revenue trends, property tax, now that the market values have been restored since the recession the growth is more modest and reliant on the CPI and sales of properties turnover. But thanks to the voters for the passage of major G our half-cent transaction tax and additional seven million dollars is available to offset increased programs of two million and support core services of five million. Otherwise general sales tax growth is beginning to flatten out as I mentioned earlier. And then the other two you can see here transient occupancy tax has shown steady growth over the past years and is expected to continue on the average of 5% per year until the recession is upon us. Cannabis business taxes have not grown as originally budgeted which is consistent with what other jurisdictions are experiencing including the state. As a result we have adjusted our expectations to show minor growth primarily for the dispensaries at 5% and increasing growth for cultivation as licensing progresses. Like to move on to some more specific highlights for the 2019-20 budget here you can see an overview of all the funds by category. Revenues are 779 million with a 48 million in fund balance from other funding sources for a total of the 827 million. The budget was balanced by increases to fees and charges to offset increased costs where applicable increases in tax revenue primarily from our property tax growth just discussed and the use of available fund balance. This chart represents what percentage each budget category contributes to revenues and these revenues are derived from a variety of sources. And here you can see that on the next slide. This chart represents where our revenues come from. The largest source of funding is about 309 million dollars comes from federal and state sources primarily provided through health and human services, land use and community services. Only 23% of the county's funding comes from taxes. Here's an overview of the total expenditures of 827 million. This reflects a decrease of about 5% from the previous fiscal year. This chart represents how expenditures are distributed amongst the budget categories. Salaries and benefits are the largest expenditure of 44% and support the county workforce shown on the next slide. It's important to note that we only spend about 1% of our expenditures on debt service which is very low. Here you can see the staffing for the funded positions by budget category. The details are provided in the appendix and the personnel summary. Proposed staffing is 2469 plus positions. It's an increase as I mentioned earlier of 53 positions from the current fiscal year. It's important to note that 31.2 positions have already been added mid-year by your board from various increased funding for the focused intervention team, expansion of homeless services and other grant funded programs within health and human services. The increase in the net new positions is 22 positions primarily for health and human services, general services and public safety. Now I'd like to focus on the general fund overview. Here you can see the revenues for the general fund account for 552 million with 6.2 million provided from the general fund balance which is also known as our structural imbalance or net county cost. This is an increase of about 3% from the current fiscal year and this chart represents the ways in which each budget category contributes to the general fund revenues which represent about 28% of the total revenues. The largest source of funding is federal and state dollars primarily through health and human services. Here you can see the general fund expenditures of 558 million. The largest source of general fund expenditures is of course salaries and benefits and services and supplies. And then of course here you can see our general fund contribution. So this is the when we have the departments have their direct revenues and their costs and the difference for the general fund departments we provide the general fund contribution which comes from the general fund revenues and we call that here the general fund contribution or net county cost which is 162 million dollars. These are the most discretionary dollars funded from the general fund and as you can see we spend more than half of every dollar on public safety. Here you can see a breakdown comparing those various categories to the previous year. While revenues grew 8% primarily from the passage of major G our half percent sales tax or about 7 million total expenses once again outpaced our revenues by 6.2 million dollars which is funded by our prior year budget to actual savings. You will note that the general fund debt service is very low at only 3.4% without any additional borrowing our debt service will decline over the next 10 years. Public safety is still the largest category at 54% with a slight increase in general government and health and human services offset by a decline in one time capital projects technology and contingencies. So here we'll spend a little time looking briefly at our 2021 projected budget. This chart shows the general fund and balance between revenues and expenditures and how we rely on prior year budget savings to balance the budget. This past year we had 6.2 million dollars which we estimate to have again at the end of 18 19 to carry forward to 1920. The majority of the savings comes from unused contingencies and one time unanticipated reimbursements of prior year costs for various human services and other programs and some slightly better allocations from the state. The projection for 2021 reflects status cooperation with the net county cost of 12.6 million which could be offset by 6.2 million if we achieve a similar budget savings during 1920 which will be challenging if the economy gets worse and we enter a recession. This leads a gap of 6.4 million to reconcile. If additional revenue measures like an increase to the transient occupancy tax are achieved and or some additional grant revenues are received for programs then this gap could be reduced by 50% and be more manageable with some one time solutions and some serious belt tightening. Looking ahead the general fund revenue growth is anticipated to decline and we will be unable to match the estimated expenditure growth. The general fund is unlikely to meet its obligations without new or increased revenues and or major cost reductions that could potentially impact programs and services. Based on revised projections the annual budget shortfall of 6 to 7 million in 2021 declines to more manageable 3 to 4 million by 2324. However it could be as high as 11 to 12 million during a recession. Declining to 8 million if prior year savings are not achieved and general purpose revenues stagnate or decline further than projected. Since retirement rates may level out to a more modest average increase of 3% by 2324 revenue growth could potentially cover our expenditure growth based on current operations and additional revenue increases. Of course it's been important that we increase our reserves the past years because it will help us provide a softer landing during a recession. The state board goal was to increase reserves to 10% of revenues by 21-22 which we achieved with the current fiscal year budget 3 years ahead of schedule. Fiscal year 2019-20 reserves continue to be 10% of estimated revenues before any adjustments are accounted for as a result of budget hearings or year-end closing. Commitments include a reserve for natural disasters of $2 million which could be used to address the winter storm 2016-17 shortfall which we will be discussing with your board. Since fiscal year 2011-12 the county has increased reserve by $23 million to create stronger financial stability for the county's general fund and improve the county's credit rating. I will mention that we did provide at this time before we make any additional adjustments. We did provide an increase of $2.6 million in the 2019 budget to maintain that 10%. I wanted to go back and emphasize the point that the budget manager just said is that our 2020 budget, the 1920 is balanced so that shows the balance there and it's balanced largely because of Measure G. Measure G about approximately $5 million is going into maintaining core services and then another $2.5 million is going into new initiatives. So if we didn't have Measure G we would be experiencing approximately $5 million budget deficit that we would be cutting. So that's good news that our residents were able to approve Measure G and maintain our core services in the county. What you see in 2021, so that's the second year of the budget, is that we have a deficit on the best case scenario of about $6 million and it could be much larger than that could be as high as $12 million. That's above our use of fund balance. So every year we're using fund balance of approximately at least $6.2 million. That's salary savings for budget reversions and we kind of count on it every year and every year we've been able to achieve it. But on top of that in 2021 we're showing another $6 million that we don't have budget reversions for. We don't have a salary savings for. So that is going to be the challenge in the second year of this budget is unless we're able to bring in new revenue for budget reversions, we are going to be in a cutback mode in 2021. We're going to have to be eliminating approximately $6 million of net county cost for general fund contribution, which is the most difficult cuts to make as you can imagine. And if we were to have a recession, it could be as high as another $12 million. So in other words, best case scenario, we have a deficit of about $6 million in the second year of the budget. We have a deficit of about $12 million, which would be very difficult, very challenging cut cuts to make. And this is something that is still under the best case scenario. We're still projecting growth in our property tax growth as the budget manager pointed out. We're still anticipating growth in sales tax, growth in property tax, growth in TOT. Even with that growth, our expenditures are outpacing. In a situation, you would see that growth in those revenue, those key revenue sources decline greatly. And so that's why that worst case scenario, you get out to $12 million or more deficit. You can see that although that the second year of this budget is going to be difficult, that after that, it actually probably gets better. And that is largely because some of the costs for PERS increases, retirement costs actually level out and then actually way out started actually declining. Not in this picture, but they're basically starting to level out and decrease the rate of increase. And so, anyway, it's something to keep in mind. I just wanted to re-emphasize that for the board as we get into this budget. This year, we have a balanced budget, largely due to measure G, but next year will be challenging and depending on what happens in the economy, it could be worse. I wanted to talk briefly about our challenges. We have some challenges in each of these areas, parks and recreation, behavioral health, substance use disorders, and then deferred maintenance and roads, storm drains and bridges. We have had a significant investment of new resources in behavioral health and substance use disorders from the federal and state governments. And this board has also made significant investments using measure G funds, a big chunk of the measure G money that came in, you set aside for this. And so, even though we have a challenge there, we've also put in new resources. Parks and Recreation has historically been underfunded in this county as in many jurisdictions and the board set aside a big part of measure G funds to help improve parks and recreation. And so, even though we've made advances, we still face challenges in parks and recreation. Road, storm drains and bridges, measure D, which the voters approved a few years ago, which is half sense sales tax as well as the gas tax, SB 1, have put significant new resources and we're starting to see improvements in that area. But the storm drains, the storm storms and storm drain problems that we've had led to more problems in our roads and storm drains and bridges. And then we have the ongoing problem of just deferred maintenance in our facilities, which we don't really have any funding source. So in the other three areas, the board, the voters have put in new resources, we're making progress, we still have significant challenges. But in deferred maintenance we really don't have any new resources. And those are things like our county jail, like this building, the elevators, the HVAC system. We had our HVAC system go out a few days ago during our board meeting. We had our elevator go out. It's just a good example. We had a water leak at MLI and it seems like we have one every few months and it's just the aging of our buildings that we haven't invested in, like many jurisdictions. And so that's a continuing process that we'll need to look at. So in closing our costs are rising faster than our revenues and especially we notice it in the second year of this budget. We worry about a recession approaching. There's a housing shortage which causes all sorts of stresses in the community. And then most significantly for us is our winter storm shortfall. The public works director will be talking about this in depth during his presentation. But it is a significant problem in that many of the costs that we had from the winter storm of a few years ago, 2016 and 2017, we are worried about what amount we are actually going to get reimbursed by the federal government. And we've seen difficulties in getting those reimbursements from the federal government and then the disaster funding. So that is a very significant challenge and I know we're going to talk about that more in depth during the public works department budget. We have some opportunities. There's a potential to raise our transient occupancy tax. Many jurisdictions, two of them in our own county are now at 12%. There's some jurisdictions in Santa Clara and Monterey County that have gone up to 14%. Our 911 fee is outdated and we need to update that to modernize it. That's another opportunity. And then we've been looking at the possibility of going to the voters at NCSA 48 for county fire to see if there would be a willingness to increase funding for that agency as well. That part of our agency. We also are very good at leveraging grants and public-private partnerships. We sent you some good news about Prop 47 for the community which is huge. It's amazing, $7 million of resources coming in to this community as well as other grants that we've been aware of. We have reserves that we could use somewhat and we needed to and we are going to look at that as an opportunity for some of the storm damaged roads, possibly using some of a small amount of reserves for that. And then the other thing is that the county has been very conservative and prudent in its use of debt. We have less than 1% of our revenues going to debt service which is very, very low and very prudent. It's a good thing. But there's opportunities there in the future as well. Most agencies are more in the 3 to 5% and that's generally considered 5% would be considered prudent and good. And we're in the 1%. So anyway, congratulations to the board in the past over having that but that is another opportunity in the future. So we will continue working on the operational plan into your budget. Continuous process improvement, performance measurement. You're going to see a major initiative that's going to be more linear with training and new pilots coming out for that. And then we are urging of course the board to continue as you have in the past to show fiscal restraint and expand when we can but also be aware of the challenges and opportunities that are facing that. With that, that brings our presentation to a close and I know the auditor, controller, treasurer, tax collector had a few words and then we will be open for any questions on the budget overview. Good morning chair and members of the board. As you begin a week of budget hearings, I have a few brief remarks to make. Overall, the county's fiscal message is a positive one. This is due to our high bond ratings, our low interest rate costs and the achievement of the 10% reserve goals as set by your board to maintain strong county fiscal health. The county's short term ratings was reviewed this month by both Standard & Poor's and Moody's rating agencies. We received the highest rating available. This continues the county's history of strong bond ratings. Our long term ratings have remained unchanged. S&P has awarded us a AAA rating and Moody's an AA3 rating. On Wednesday the county sold short term bonds with a low interest rate cost to us of only 1.19%. Regarding the county's fiscal reserves, your board adopted and met a reserve goal of 10%. This action reflects your board's dedication to invest in the future. This will become even more important in the next year as many economists are predicting a recession or some significant slowing of the economy by the end of 2021. If this happens, maintaining our reserves may be a difficult yet important fiscal management step. With economic uncertainties ahead of the county, I urge you to continue your practice of maintaining spending restraints during this budget hearing. Thank you, and that concludes my report. Thank you. We'll open it up for questions now. Supervisor Brown. Thank you, Chair. Thank you for the presentation. I actually just have one brief question that is in regards to the sort of best worst case scenario in regards to the 6 or 12 million moving forward. You presented the possibility of three potential revenue measures of which one would assume would be directly tied to the general fund, the TOT. The best case scenario, though, I assume was in regards to the current projections absent those revenue measures, correct? That is correct. And what would be a best case scenario should one, two, or three of these revenue measures pass that we would actually have a sense then of where these numbers would go? Sure. So for every 1% increase in the transient occupancy tax, we realize about a million dollars. So depending on the level of the increase, currently 9-1-1, our outdated 9-1-1 fee doesn't take into account cell phones. And so we've lost considerable amount of revenue to support that. So the general fund is supporting that to the tune of close to over a million dollars. So if we were able to right size that fee, we could save a million dollars there. And county fire doesn't benefit the general fund, but we know we want to expand our county fire services. So you would estimate maybe up to three million potentially recognizing, though, that if a recession would happen at the same time, people travel less. And so this isn't a one-for-one, but we would still be faced in a best case scenario, even with revenue measures, the reality of cutting potentially three plus million dollars in the next couple years. That's correct. Thank you. Thank you, Chair. Thank you for the presentation. The one thing I was trying to figure out around the sales tax increases, these numbers seem to jive with the other figures that I've seen. But when we looked at the public works budget and the Measure D, there was no growth at all. And I'm wondering, they said they were being conservative, but are we not including resources that could be available for things that the public considers to be very important? So we have been advised. I mean, we are seeing growth budget over budget and that growth is already occurring this year. But actually the actual sales tax is fairly close to flat, the growth, the future growth. So they may be, depending on how they budgeted this year, if they budgeted the full amount that they expected for Measure D, then they may look fairly flat for the coming years. So I'm just trying to figure out if we say that this budget anticipates a 4% growth. It's actually less than 2%. We are actually already seeing and receiving about 2.5% of that 4% growth because it's budget to budget. So our estimates in our current year, we are already seeing an additional 2.5% above budget. Okay. I was just responding to the numbers that were up here earlier. And then the 3.5% in year 2. And just, it seems to me that we should have a common standard, I guess across departments. And when we make these kind of budget suggestions because I think it's helpful for us to be using that, we're going to be conservative. But we should be conservative across the board. And if we're going to anticipate growth, we should anticipate that across the board. I really appreciate the work that you put into this. I guess one thing with the Measure D versus our sales tax, Measure D's countywide sales tax versus our own sales tax was just the unincorporated area. And I know that Measure D incorporates some of the, it's of course the cities. And there are some cities that are actually seeing sales and sales tax by Capitola, which is actually declining because of the mall closure. And we're actually growing largely, some of it is due to Aptos Village. We're anticipating some of the growth there. Great. Mr. President Pearson? Yeah, I'd like to make several comments. First of all, for very enlightening but at the same time challenging budget scenario that you presented. This really what you've done is amounts to a milestone in good governance and transparency for Santa Cruz County. I look at this budget and can even understand it. And I think most of the people in Santa Cruz County can too. And I want to really say thank you to you and all the staff. When we're evaluating a two year budget it's really easy to understand. And under the strategic plan and the operational plan, I want to say thank you to all of your staff as you have done too. Especially I think to Nicole Coburn and Sven Stafford. And I want to thank them for seeing me look at the operational plan to add something to address the needs of senior citizens in our county. That is very important, especially in light of Governor Newsom ordering a master plan on aging to be developed by next year and October. So I think it's really important that we are in line with that. And the fiscal discipline, it can be overstated. I think that is really great. Hopefully we don't have, we're not going to need it this year but next year is going to really be a challenge as you have stated. And the spending or having only 1% debt services really somewhat remarkable for government agency. I want to reiterate too with the help of county voters we've made some great strides toward addressing some of our future needs that we need to do so with measures G and D and also the library measure M, or no, S, excuse me, S. Measure S. And that was in 2016 but in making adjustments in our roads and infrastructure. I think our biggest challenge, as you said, we don't have a support system for our maintenance. And as much as we all want to add something and do something more, we need to really focus on maintaining our own buildings and so forth. And I'm not saying that because half this room is full with maintenance workers in the county right now but it'll cost us more if we don't address it right away. Also that we know that our per's costs are going to be going up. I think it's going to be leveling. It's going to be a tough year next year and maybe the year after but hopefully they'll level off and will help us to get to that to address that $6.4 million shortfall. But overall I just want to say thank you for presenting an understandable budget and one that looks very good and we just have to keep our wits about us to make sure that we are ready for what's about to come with a recession that everybody is predicting sometime. We are in good shape I think to do that. And I want to thank you again for everything that you have presented today. I want to thank you all for your work too. This is probably one of the most important things we do in the whole year as far as if we make one mistake we're all going to suffer for it. I guess all the decimal points are in the right spot. I remember a few years back when I was on a library board that one decimal point was off and one part of the county was actually facing about a $5 million deficit or whatever. And I think that happened with the state of California too. But that's bigger money. So anyway with the staffing it's increased. That came by real quick. We're up to it'll be at about $2,470. And what was it two years ago? Approximately. Well we increased the staffing this year about 50 positions. And the previous year we increased the staffing a very small amount. About 20 some positions. So less than a hundred. It was about 2,250 or something like that. Closer to the 2,300 mark yes. And I bring that up because that's the future possibly of the obligations that we'll have. And kind of a quick overview in the last four years, three, four years we've done what to take some of the to address the pension problem that faces everybody down the line. I know some of it is one more contribution from all of us. There's been a number of initiatives to reduce pension costs. The board took action to provide a third tier or a second tier rather for retirement which was we increased the age of retirement. This board did for new employees. This is a number of years ago actually. So you established a second tier. You also adopted a besting schedule for retiree health benefits according to years of service. And then after that the state of California adopted pension reform which in effect established a third tier for our employees. So the first tier was for general employees was 2% at 55. Then the board adopted a second tier 2% at 60 for new employees. And then there was a third tier established by the state of California was 2% at 62. And then in addition you adopted a besting schedule for retiree health benefits. In addition employees, you've worked with our labor groups so that employees now contribute more towards their own pension and that's taken place over the years. So employees pay their own share of retiree health benefits and of pension benefits and that amount has increased over the years. So all of those things are good news in the future but right now we're still in the last part of the prior benefits and that's why it's costing more right now. But the future actually looks quite hopeful because of these reforms. Okay and then total reserves, there'll be some one time spending on that, right? What is the total about? How many million that we have in reserve? Looking to the otter. It's over, it's close to 55 million. Close to what? 55 million. It's a total reserve. And after the one time it would go down to how much? It'll, if your board takes action on using some of the commitments for natural disasters to fund the fund shortfalls, it would reduce the reserves by approximately 2 million or up to about 2 million. About how much? 2 million. And then the other one, how much of a stress is the federal highway money that's supposed to come in? I think it was approximately 7-8 million dollars and if they're not giving anything I mean so we're having we're having to shuffle everything in order to cover about what, 7-8 million dollars? Yes the public works director will go over this in more detail but the summary is that there's about 7 million dollars of storm damage roads that the county repaired in emergency basis for which we did not get reimbursed from a combination of federal highways and FEMA and that total is about approximately 7 million dollars and that shortfall is something that we are going to have to make up with and we have a proposal to do that which we'll be bringing forward and you'll be talking about it during the Department of Public Works budget. Is that included in what we're looking at now? It's not another 7 million we're going to have to take out later? No it's, we have a plan for that and it will be addressed during the Public Works Department budget. That will be in the next day or two. Yes. From the budget of this year and next year projected there's about a difference of 19 million dollar increase in the general and that would be mostly due to staff increase maybe huh and also a little bit of inflation and colas and everything. Yeah there are staffing increases in there we've also added new programs so we've augmented various programs thanks to major G so there's various other new services and programs included in that 18.5 million. Thank you. Thank you all of you. Thank you for both a clear budget and a responsible budget that both addresses emerging needs in our community and is fiscally responsible. Calling attention to what you said earlier which is this our first two-year budget so one of the goals of the two-year budget was not only to give people some senses to where things were going have a broader time scale. The second one was to free up some staff resources who spend many many months preparing this budget to spend time on performance management and those other things. I know it's early because we're just getting this budget in but how are those resources going to be available to look at other projects and to free up capacity for more analysis and performance management? That is our intent yes depending on what happens in that second year I know it could be if there's major changes in the budget we'll have to have more extensive work but our intent is to focus really just on the changes in that second year to what we've already submitted to you and to focus more on some of the new performance measurement as it ties to the operational budget. So that's what our hope is because it is a huge I mean this document is huge and this is just one piece of it right there's all the line out of detail and there's all the supplemental and big effort to produce just to produce it and so the idea is that by not having to produce the same amount of effort we will able to devote more to our performance measurement and continuous process improvement efforts. Great thank you. Another thing I wanted to thank you for you you're expected to we expect to have you have a six month review of this is that going to be at the first of the year in January is that correct with this budget? That's excellent that gives us a heads up as we're going along really they talk about this recession and it could start in six months it could be in six years but I think having that mid-year review is really important and I really want to thank you for doing that for us too it's going to be very important so we can prepare for anything that might come up. We actually have instituted two previews one in late November to summarize the close of the prior fiscal year as well as what trends we're looking at and then we have a formal mid-year budget review in February. Great so now is an opportunity for members of the public to speak to us about items on today's or just covered by this item is there anyone who would like to speak to us about the opening remarks with the proposed budget okay seeing none I'll close it and I'll bring it back to item number six which is an overview of the general government budget category there's a presentation on general government budget category as provided in the proposed budget these are pages 45 to 47 as outlined in the memorandum of the CAO. Good morning again members of the board Christina Mallory I'll be presenting this item and providing you an overview of the general government category so here you can see a list of the departments included in the general government category everything from the professor auditor controller to personnel information services general services of course our office the county administrative office and then we have we've included our financing from the general county revenues debt service and contingencies as well as contributions to AMBAG and here you'll see an overview of the general government expenditure category represents about 102 million dollars for the upcoming fiscal year this represents 1% of the total budget expenditures for fiscal year 1920 and is a 1% decrease from the previous fiscal year which is primarily due to the increased cost of to maintain current operations offset by some one-time decreases for the internal service funds like information services and risk management this chart shows the share of expenditures by department and agency the largest expenditure of course is salaries and benefits which comprises about 45 million dollars and supports about 320 positions with an increase overall of one position from the previous fiscal year additional expenditures include services and supplies of about 40 million and 32 million in other charges here you can see the expenditures by type for the two fiscal years the majority of the funding of course is for salaries and benefits and supports the positions for fiscal year 1920 and 310 positions for fiscal year fiscal year 2021 there you can see the services and supplies at 41 million rising to 42 million in the second year and other charges it's important to note you see the major shift in other charges there that's where we budget for our risk management funds claims reserve so they budget their reserves and appropriations and that's why we see the major shift in the overall category there here you'll see the revenues for the general government it's comprised of about 54 million this year or about 53% of their total financing with the general fund contributions and other funds making up the difference of 47% to meet the expenditure needs the general government revenues represent 7% of the total budgeted revenues it is comprised of about 50 million in charges for services and 2.9 million miscellaneous and less than a million in licenses and permit fees additional financing includes 24 million in the general fund contribution and 24 million in other funds which is primarily our risk management funds this chart shows the share of financing by department and agency and note that both the ambag and the supervisors are not represented here since they are fully supported by the general fund they have no revenues risk management is the largest share of general government at 38% primarily because the risk management reserves include the various reserves for the various funds here you can see the revenues by type for the two fiscal years the majority of the revenues from charges for services at almost 50 million and in 19-20 an increase of 52 million for 2021 to offset the rising costs and here you'll see the general fund contribution for each of the departments and agencies the total is 24 million dollars which represents 14% of the total general fund net county cost or contribution and the further details are provided in each of the budget proposals from the departments the general government departments contributed 61 objectives for the 19-21 operational plan major projects include mobilizing for the 2020 census creating a strategy to reduce fleet emissions and several continuous improvement projects to create a better experience for the county residents and here you can see some of our highlights and our successes personnel department organized the county's first career fair with 100% county departments represented 410 job seekers in attendance and 110Ds at three different workshops the clerk elections office reduced the record setting November 2018 election they saw the highest voter turnout since 1982 and offered three same day registration centers across the county and installed and promoted two more vote by mail drop boxes to allow voters to return their vote by mail balance with greater ease of course major g passed we're very fortunate to have that pass and support our core services and new programs and in general services the fleet division increased its fleet hybrid fleet by three vehicles for a total of 75 alternative fuel vehicles the county administrative office have you just heard has produced the first two-year budget and operational plan and we've begun Primo and that's well I go back wasn't quite done and the office of economic development created and launched a new office of economic development website Santa Cruz Vitality to promote compelling value proposition and brand for Santa Cruz County and our department heads are here today to answer any of your questions the majority of them are on consent agenda and then we have four departments presenting their budgets in detail to you general services personnel services information services and of course the county administrative office so with that I'll turn it over to see if you have any questions otherwise we can do it. Do we have any questions about the general government budget category? President person. Yeah I am a member of AMBAG the association of Monterey County of the executive director of AMBAG for her staff and doing a terrific job of tracking big issues that affect our region I especially appreciate AMBAG keeping its members informed regarding state and federal regulations that could have a serious impact and unfortunately we heard last week that there could be a serious one coming upon us we heard how the federal rollback of national fuel efficiency standard for vehicles could have a disastrous effect on California and its greenhouse gas emissions reduction goals and the ability to deliver more than $130 billion for that purpose so it's a real big concern we have transportation related concerns in our own county but this is a regional area too which of course we are one of the three counties with San Benito and Monterey I'd just like to ask a couple questions for some of the members that are here in the General Services that we've talked to on the cannabis licensing initially we assumed that the fees would generate a high revenue which weren't attained and that's true throughout the state of California and we need to move more as we have been doing to make this self-sufficient operation if we can and if I could ask if we are reducing a planner position in this as called for in the budget are we going to be able to process the uptake we hope to see in the applications for this I don't know if anybody from cannabis operations could answer that yes I can answer that and I'll see if they want to come in and I know they're monitoring the hearings and their offices we are the budget is proposing to have one position which is unfunded we still have the position our staff felt that they are able in the cannabis licensing office to process applications at this time with the staffing they have the issue has been more in the planning side where we've devoted more resources in the planning department to this effort so cannabis licensing feels that at this point we are able to manage it but we still have the position there we see an uptake and we need to bring another position back we will okay another question to be directed to our county clerk our excellent county clerk Neil Pellerman last week or just recently you talked about our election system being decertified but we got a grant for doing that and to update our election systems and what does that mean is that any difference what differences can the voter in March of next year expect to see or I know that you explained it somewhat a week ago but I think this is a good time to repeat that there you go good morning so on the paper ballots instead of connecting the head and tail the arrow pointing to your choice is going to be a bubble so it's a little more intuitive for voters as well the accessible units going to look like a large tablet and it would allow a voter to vote independently and privately and it will print off a paper record with the choices written clearly out enumerated there what they're voting for and it has a QR code that gets read by the scanner we're doing those voting demos this week so I want to invite the public and you as well to go to the demo we have set up for county staff on Thursday and we have it worn in the morning from 10 to 12 and then 6 to 8 over at Simkins and then Friday will be over in Bill Civic from 10 to 12 demonstrating the new voting system so this will be a first glimpse there will be lots of other opportunities to look at it but we're doing that this week prior to hopefully having the contract before you on June 25th I know county council is working with us on that so thank you excellent thank you appreciate it I have another question directed to economic development the budget continues to provide time for implementing project but it doesn't really include any services for supplies to help fund the expenses will that hamper the economic development department's ability to meet its objectives of new projects throughout the county good morning board no it won't certainly we would welcome any additional funding that could be provided but I think that when we look at what we've done so far with just staff time we've been successful in most cases what additional funding could bring to the table would be opportunities to advance additional analysis through consultants and in particular for Boulder Creek we could help I think further facilitate the advancement of the Boulder Creek Main Street program which would we could for example we could back fund some of the cost of hiring a consultant or a Main Street program manager for that area okay thank you you bet any other questions or comments we're going to do the consent agenda next correct so is there any public comment on the overview of general government seeing none I'll move on to item number seven which is the action on the consent agenda and general government these are items 12 through 23 on our agenda today and first I'll ask if any board members have any questions or comments would like to pull any item thank you chair you know when we switch to the consent agenda a portion of our budget hearing process we lose the opportunity to hear about what's going on in critical departments but are somehow deemed not large enough or significant enough for us to have to spend time hearing presentations I appreciate the work done by these departments every day and the fact that you also answered a lot of questions that we sent down as part of our budget memo of these I just want to acknowledge the ongoing work of the assessor recorders office I think does fantastic work and we count on in such a critical way to be able to figure out where our money is going to be coming from and in which the public counts on so thank you for that ongoing work the auditor controller treasurer tax collector provides also critical work I noticed in one of the strategic goals is to try to make sure that we are capturing all the TOT revenue from vacation rentals I look forward to the annual report we get from planning about to get an idea of how many we have and different parts of the county but I know that your work ongoing and the fact that you've been helpful to us in achieving the goal of the reserves the support from your office and the ongoing work to ensure that we get the best rating possible has to do with the presentation that you put together so thank you for that the board of supervisors agenda is part of this and I just want to recognize Jillian Ritter who is the captain of our board of supervisors staff she does incredible job we are grateful to have her and I appreciate all the work she does in supporting us every day in the board of supervisors office we hear from quite a bit we spent a lot of time talking about cannabis and the cannabis licensing office is doing ongoing good work and I'm sure we'll see you before the board on a regular basis over the next couple of years as mentioned about the elections office also outstanding work and clean elections here and our recent update of our election ordinance was useful in part of the ongoing work that you do to make sure that we're doing the best we can and county council of course we depend on you and the leadership that we that we get from our county council Dana McCray but the ongoing work of all the attorneys makes a huge difference lastly I'll just express my appreciation to the office of economic development there is a lot of economic activity going on in the first district and I have been able to count on our economic development staff to provide good information to me to my staff that I can share with the public I appreciate the way they're working with businesses in the district we're seeking to strengthen our economic base here in Santa Cruz and I believe we have the right staff to do it so I just want to acknowledge that ongoing work. Is there any public comment on the consideration today seeing none I'll bring it back to the board we're on the consent right now correct and most everything I was going to ask was already answered by the last list of questions number 21 debt service is that our debt because some people in the county are back you know they're behind on their property tax and all that is that included in there too no that's just like the county debt service on previous funding certificates of participation funding for various improvements in the county and I should have asked you this before but how closer are we to paying off the debt that from the 19 I think 96 flood the flood year we had we had to take a mortgage out on the county building how are we doing on that about how many more years are we going to have to pay that back you know I'd have to look at that it's in the debt service schedules in the appendix I'm happy to get you that answer off top of my head I don't know how many years are left but I know that each year were every couple years were paying off various debt issues I think the original debt was what about 26 million okay yes I believe it's eight years remaining that's what me and the county council that's what we think yeah I remember us saying in less than ten years will be two thirds of the debt will be gone the county assuming we take on no new debt so we're in knowing that we only spend one percent of our budget on debt service and knowing that within ten years two thirds of the debt will be gone gives us an opportunity to think about the future in a different way okay thank you okay I entertain a motion got a motion by friend and a second by McPherson all those in favor please say I opposed that passes unanimously we are now going to recess to our evening session tonight we have a 7 p.m. no no we have nice try I know I really really really wanted to get going Mr. Bowling would have gotten into his super good reason exactly so sorry this is I don't have a regular a 12 I think yeah 8 sorry this is the general services department and it's to consider 1921 budget for the general services department and schedule the final approval of items on the continuing agreement list items for the last day budget hearings of June 25th as outlined in the reference reference budget documents in the memorandum of the general services director please go ahead thank you board chair with me today at the podium is Carol Johnson assistant director and Michael beaten director general services before we get started today I really want to give a big thank you to the CEO's office and county council for their great support of general services over these last year this is my first full year as director moving from the assistant director from the health services agency over this past year it is absolutely absolutely been amazing year getting to know this department I know every single staff member it has been a year of learning and enjoyment for me both personally and professionally and with that the team of GSD has really made me feel like a family member within GSD what we have here is a picture of our holiday crew a holiday party that we had this last December yes this last December kind of about our GSD department is in this picture if not almost more than half are in this picture today we're going to be going over the general services department and I'm a little happy today because in the past general services has been a consent item so this is our first time in about three or four years coming to the board to do a presentation now with GSD one thing I did learn about the GSD family is what GSD actually stands for I originally thought it meant general services department but it doesn't it stands for getting stuff done and it is a slogan that I learned right around the same time of this holiday party and it's something that we keep coining and keep using and every time we get something done it's like yep getting stuff done so it's something I'm kind of happy with as far as we're heading that way over here for GSD we consist of county office of emergency services the county fire budget as well as the general services budget today we're going to be going over the general services budget with the county fire budget and the office of emergency services being on Thursday for the general services budget we're comprised of primarily the facilities management team which consider consists of our custodial division and our building maintenance we have purchasing we also manage the county's warehouse the county's fleet related to purchasing vehicles and maintenance of the vehicles and energy management construction management and 24-7 handling of emergencies the crew behind us that you see here today is the crew that handles the 24-7 emergencies that we have in our buildings every time we have a flood in the middle of a night the guys behind us report the flood that we had at 10-20 we had Brian backer Brian backer report saying that we had a huge flood at 10-20 involved about a thousand square feet but these are things that we do every day we have somebody on call constantly reporting to instances in the county where we have an emergency and it's really this crew behind us that has done an excellent job on stepping up to the plate to really take care of this county the best way possible related to our facilities and with the deferred maintenance that we do have for general services operational plan focus areas kind of consists of our focus on sustainable environment related to energy management and some of our decisions that we do with fleet and purchasing vehicles and our construction as well as reliable transportation also related to our fleet and county operational excellence so with that with general services I want to pass it over for a general budget overview for our system director Carol Johnson good morning what you are looking at here is a snapshot of our recommended budget which includes in summary an increase of expenditures of approximately 422,000 an increase in offsetting revenues of 287,000 reduction in fund balance from fleet of 143,000 and an increase in general fund contribution for fiscal year 1920 of approximately 278,000 we anticipate purchasing 25 vehicles in the upcoming year the majority of which will be sheriffs and under covered vehicles but I'm happy to say that the those purchases will also include two additional EV vehicles which will give us a total of six in the general services fleet and adds to our current 75 hybrid vehicles this is just a summary of our 1819 1920 and 2021 budgets showing revenues general fund and expenditures we'll have a couple of upcoming slides that will go into more depth what makes up those revenues and expenditures what I'd like to highlight on this slide is the staffing in 1819 we have a total staff of 60 with two and a half positions being unfunded for a funded staffing of 57 and a half the exciting thing and I'd like to thank the CAO's office and Trish Daniels for helping us add to that so in 1920 we have the addition of a maintenance plumber to our facilities division we have also funded a senior building equipment mechanic so we'll have quicker response to emergencies or just increased preventive maintenance on our aging equipment we have also funded one and a half custodial positions which will help us keep up with the expanding clinic operations both in north and south county in 2021 you'll see that the positions drop to 58 we have three limited term positions currently which have assisted with the remodel here at the government center those positions are set to expire at the end of 2020 but we hope working with the CAO's office that we can either extend those limited term positions or build them into permanent positions this is a summary of our revenue breakdown for compares 1819 to 1920 and 2021 use of money is generally the rent we receive from the legislative office charges for services is primarily our time and materials fuel for our fleet division as well as charges to non-general fund departments county overhead and fleet and depreciation charges financing is operating transfers primarily within our fleet division so departments if they need an additional vehicle will offer to pay for that vehicle transfer the money to fleet and we will purchase that vehicle on their behalf so on similar to the revenue this is just a summary of our expenditure breakdowns as you can see salaries and benefits are primarily our highest costs and the 1920 and 2021 numbers include the negotiated increases services and supplies is our ongoing maintenance for the buildings it also includes utilities other charges county overhead so in general services we build out a lot of what we do for services to other departments and those costs or those revenues offset our salaries and benefits as well as our services and supplies just to highlight again some of the additional staffing we will see in 1920 in 1819 we funded the previously unfunded deputy director position some of those duties we envision being the daily oversight and management of the general services department working to achieve our operational objectives we have 10 to accomplish over the next two years between general services and the office of emergency services participating in the campus and facility as well as continuing to investigate opportunities to expand our EVs as well as the EV charging stations which is one of general services key objectives for the building construction project manager which was previously the building maintenance superintendent this position will manage the many construction projects that occur through general services we see an increase in those due to the adoption of cup cat so we'll be doing more project management at a lower cost level they will also investigate other energy efficiency opportunities as well as for those projects that we have implemented with energy savings making sure that we're meeting those thresholds we're achieving the savings that we said that we would when we initially you know the LEDs the solar making sure that those savings are actually achieved and if not why not and working to achieve them again we are very happy that we've added a maintenance plumber that brings us to a total of two for over 30 county buildings later on in this presentation we'll talk about one of our objectives which is a new teams approach for attacking building maintenance we've also funded the senior building equipment mechanic again to see that as a decrease to our backlog of work orders respond to emergencies do preventive maintenance on all the equipment that we have in our buildings as well as fund the one and a half custodial positions okay thank you with that to kind of highlight some of our objectives we've picked four objectives today to highlight to the board one of the objectives is by June 2020 general services will expand and improve parking at the government center for employees and the public to increase the number of electric charging stations with this item here we've been actually been working behind the scenes working on including seven charging stations and additional two for county vehicles just like Carol identified installing four more this coming year at different work sites working with the Monterey bay community powers and our district to evaluate additional sites and future grant opportunities conducting a parking survey to evaluate and redesign measure interest and trip trip program this item here we brought to the board on June 11th brought back to the board for a partial expansion into this and we were continuing to work on this as we move forward for the second objective we wanted to highlight was a fleet redesign with fleet redesign we have a few things that we've learned about our fleet fleet services manages the purchasing and maintenance and repairs of all our county fleet with the exception of DPW and heavy duty equipment so far what we've learned is the majority of our county vehicles are underutilized county has a guideline of about 7,000 miles per year of usage for our light vehicles almost more than 50% of our vehicles do not meet that minimum mileage a lot of our vehicles do not have certain safety standards that you would expect to have in a fleet of vehicles including anti-lock brake systems child restraint anchoring standards that were established in 2005 passenger side airbags mandatory in all vehicles in 1998 and we do have vehicles that do not have driver side airbags which were mandatory in 1994 so in analyzing our fleet we have some issues that have been identified as far as safety concerns that we will be hoping to address as we go forward and working with the sales office and the user departments in helping to look at different ways to utilize data in analyzing our fleet of vehicles for our facility security component general services has been working on increasing a badge access system for the 701 government center the badge access system is about 95% complete we have about two more pieces left and we anticipate by July 1, 2015 we should be able to flip the switch and have our auto lock system in place on our front doors to our 701 building what that means is after July 1 to get into the building employees will need a badge access in order to access the building we'll be moving away from the current key system that we will have better tracking and mechanisms of who enters our building once we can show competency of the system within 701 government center we do have intentions of deploying the system out to other departments in other county buildings that may have an interest of using it so the last objective we wanted to highlight happens to be one of the kind of really exciting one in related to our facilities maintenance the question that kept popping up is how do you do more with less when you look at general services facilities maintenance team we are smaller than we were many years ago and we have more buildings than we did many years ago and this is something that's been highlighted by the CEO's office that deferred maintenance has been an issue for this county for a while in working with the crew and where's Bill in working with the crew and their supervisor Bill we've been working on developing a new system on how to develop and handle our facilities maintenance and I'll give you an example of some of the items that we're going to do we're going to move into a team system right now currently every single one of our maintenance crew kind of works on a individual assignment by their own they go work on their own queues their own problems as items come up and it could be something as hanging something on the wall right here the next item that person might have is down in the middle where they have to go paint something and then the next item might be back over at the jail because something broke right we're working on trying to be in changing the dynamic instead of being reactionary to being more systematic so our two team system is basically one team that's going to be handling emergencies which will consist of a plumber electrician so the guys know better behind me than I do so it's kind of exciting HVAC as well as the building maintenance worker crew and a lead on each team one team will handle general maintenance items so as we get requests for hanging things on the wall or certain walls need to be painted those will go into a queue until our general maintenance team gets to that building they might get to that building once a month we're trying to figure out all that out but our game plan is that we're trying to get it once a month that way we handle all those general maintenance items at one time one thing that we're also trying to eliminate is multiple orders and runs to the supply store we make quite a few runs a day over to home depot or to different lumber store just to get materials just to come back to finish a job in this new team model we're working on whatever items that we need we do one order one guy goes over and picks it up the next morning and then we get back on the job with facilities maintenance it's kind of exciting and we look forward to developing it as we move forward with that to kind of go a little bit more about Primo I'm going to pass it over to Carol it's been a very exciting year for our staff with process improvement we've had two staff in our office go through the county cohort training and one has actually become a certified green belt she will be able to assist with rolling out our other objectives and objectives for the upcoming years we also have four liaison so their responsibilities are to keep rest of GSD staff informed as to what's going on related to our Primo projects roll out resources trainings that may be out there that are being offered by the CAO and provide other necessary updates just to keep us in the loop what are other departments doing what can we what projects can we work with other departments to enhance what they're already doing so next I'd like to highlight and this touches on some of what Michael went into is looking at our primary Primo project which was assessing our current work order management system and to best give you an idea of what that is is just kind of walk you through what we do when a work order comes in and so primarily a department or someone in GSD will get a call for service we'll enter that work order rated whether it's a low priority it'll go into a queue it'll get assigned to someone and then they'll get dispatched to perform the work they come back at the end of the day they record their time of materials on a separate sheet that sheet is then given to someone else to enter back into the system so that at the end of the day we can actually do some billing what we're looking at and investigating along with parks and information services is a more mobile approach so that staff out in the field will actually have a tablet they can see current work orders they can see if a work order comes up that may be happening at a building that they're already at and can go into their queue they can record their time starting and stopping on the tablet record their materials this saves them time at the end of the day when they don't have to come back to the office and do that work and enables us if we had to to be able to turn around that billing the following day because all the information would already be in the system so we're not only looking at what's new and out there on the horizon but also evaluating our own system to see whether it has those capabilities we also want to be able to upload as built into the system service and maintenance manuals so that you know staff can troubleshoot equipment while they're in the field not have to come back to the office and see those service manuals and what you can see the top picture on the right is actually our primo team doing a swim lane looking at all the steps and I think we probably came up with 20 or 30 that it took to actually do a work order very time consuming so how can we go green more paperless be faster quicker more efficient at what we do and save the county time and energy the other primo project that we had was ergonomic evaluations in the past our county safety officer performed all ergonomic evaluations new employees employees who moved locations transfers those who came in with a positions note so what we've done is the safety officer has developed a simple outline that we are currently training individuals in each department to be able to perform those ergonomic evaluations through the routine or if somebody just moves from HSA to HSD or gets a new workstation so they can go through a simple checklist make sure that they're looking at the computer at the right eye level their feet are flat on the floor their chairs adjusted the way it should be but then the safety officer will continue to perform those non routine evaluations and what we've done before we rolled out this program is we gathered information on what we're currently doing how many of them which departments how long it's taking us and then we'll be able to do the same thing once this new program is rolled out working with personnel get that information which employees have moved departments how fast are those new evaluations happening and then of course communicating to the departments sending out a survey getting feedback from them to determine what we did right what we need improvement on because of course it's pre-mal so those are just a couple of the highlights that we've worked on in 18-19 that will continue a little bit into the new fiscal year with that said this is kind of the conclusion of our general services budget there was one other item that I forgot to mention under the getting stuff done which is the windows are clean at the 01 Ocean Center which was a huge accomplishment I know that it's a general service we've been working on it for 10 years too long so that was exciting with that said we were asking the board to approve the 19-21 2019-21 proposed budget for general services as recommended County Administrative Officer with the reference pages as identified on the screen okay well thank you for your work those pre-mal projects sound exciting and a great way to rethink the work you do and do more efficiently and thank you to all the people who do the real work every day coming out here and for your work keeping this building up and going and all of our buildings are there any questions people have thank you thank you for the presentation thank you for the ongoing work of everybody in the room connected to general services I know that when as I go through county buildings or see people in this building people are really geared to helping other people out and general services is a good face of the county because people see your staff throughout the county buildings every day I just had a couple of questions I really appreciate the efforts that have been going on to increase the number of EV chargers I know with the new parking lot expansion here that there are now state laws that require us to have chargers as part of any parking lot expansion I don't know whether it's 8 or 11 chargers that will be required as part of those new 80 plus spaces do we have an idea of how we're going to pay for those 11? the parking lot expansion project includes running conduit for an EV charging station back there we're also working with Monterey Bay Community Power and the air district to try and find grant opportunities to offset not only the cost but the installation of those charging stations to go specifically with your question we are exploring in our fleet redesign how to go 100% electric with the vehicles I know it's a pipe dream but it also includes building an infrastructure with the whole need of a whole bay of electric charging stations through some change orders once we get the original bridge back we do plan on exploring how to add and relocate some of our charging stations to make it more effective and efficient we have about 4 charging stations that are used on the backside of our fleet service center that are I would consider underutilized as they currently just charge one vehicle and one vehicle only where if we can move them out and put them in more of a systematic rotation where the public can use them as well so those are things that we're working on and looking into as well as we'll have to explore the legal requirement on the number of spaces we have to that's something I'll have to look into yeah my wife's a transportation planner so she made me aware when I talking about the parking lot expansion that state law now requires and I also think that PG&E has some resources they like to put in 10 at a time which isn't necessarily something that we can always do but if we're going to be required to put in 8 to 11 for the new parking lot that might be an opportunity to take advantage of some of those funds as well related to the charging piece if there's a place to identify funding to put some kind of charger in any of the Soquel parking lots that we run it's really a gap in the charging network that there is no chargers there and it'd be great to be able to have some kind of charging capability in the village most of the parking spaces are parking spaces so it's an excellent opportunity. Related to the parking lot expansion could you fill me in about what your understanding is of the park commission recommendations about the use of the space next door so my understanding of the recommendations from the parks commission was that use of the space all revenue from the expanded parking goes to parks 100% it basically resides as parks and under parks control they rent it out as normal just during the day during operational hours at this building we use it for county purposes but besides that it belongs to park just as it is today. Sure that was my understanding as well and so one of the things I realized in the budget is that we've accounted for over $90,000 of revenue from the parking permits to general services and I'm not sure whether we need to take action to make that change to parks as part of our process here I'm looking because I don't know the answer though. That's a very interesting question so I've actually been meeting with Jeff Gaffney parks director and been talking about the different revenue agreements there are some things for example the maintenance and repairs of the parking lot out here is born by the county general services department so we are responsible for the repairs and maintenance as every time we have an asphalt repair we repair it now when the parking lot does rent it out by parks it does include the whole parking lot including the area that's not just the parks portion here so that revenue does go directly back to parks and it doesn't come to general services so when parks does rent it out they do collect 100% of that revenue for the whole campus so I think there's two different revenue streams one is the county employees which pay towards the parking and that comes directly to general services which is to us help maintain the parking lot in front of us and then parks maintains their revenue by rentals of the property here and the parking spaces during off hours well in the budget there was an additional $144,000 from parking fees coming in this year and at least in the response that I got over the weekend was that the 1920 increase is $600 and this is says the increase is due to additional parking fees from the 701 parking lot expansion project so I'm just trying to figure out where that goes and whether we need to take action around that. Sorry so what that is is with the expanded parking we do anticipate charging by increasing the number of spaces available by 81 spots of which we anticipate 76 of those spots being able to rent out back to the county employees which is part of the county employee program we were originally keeping that with general services and our intention was that that revenue would stay with general services as is part of the county's employee parking program we're going to be looking at that revenue when it does come in to augment other programs that the county does fund such as the bus program or the trip program some of the other alternative transportation programs so we've been using those excess funds to that we do get or if there is excess funds those funds we can take it right back to alternative transportation programs. So I'm slightly confused as to whether the parking lot expansion is going to result in any new dollars to parks or not. If I can clarify because I saw your question. So our allowed 18-19 budget for parking fees was $85,000 and our 1920 amount for parking fees is actually 105,000 so an increase of $10,000 in additional parking fees due to the parking lot expansion over here. Okay. So I appreciate it. The scope of the number. I'm just trying to figure out if it's a net increase to parks or a net decrease to general services. It should be a net decrease to both. The reason it's also a net increase to parks is those spaces during the off hours they will be able to rent them additional money. I wish Jeff Gaffney was here he'd be able to explain it a little bit better but they'd be able to rent each one of those spaces, 81 spaces to the boardwalk seaside company and those venues and collecting the additional revenue. So when we talk about so instead of them just renting out the lawn they make more money off of renting out parking spaces. So by renting out the parking spaces that we're expanding out here that money does come additional back to parks. So it is complicated to explain and yeah. So the parking fees are going to go to general services. The parking rentals will go to parks. Correct. Okay. So unclear. So I appreciate the clarity. I appreciate the ongoing work and anything we could do to expand the charging network I think will help us achieve our goals about reducing emissions and I think we're slowly taking that on and we appreciate the continued effort to expand that out. Yeah thank you. I want to just congratulate you for I think you've included the employees too and just getting a more efficient and the safety factor that you mentioned is quite a concern to me that it's gone on this long but we're going to address it now so congratulations on that. It's hard to believe that we have 30 buildings and this small crew right here takes care of and I think probably we could probably say the most important budget addition we're going to make is a plumber in general services this year because yeah as I said earlier if we don't address our deferred maintenance in a better fashion than we have no blame to go on that but we're going to pay the price bigger price later so I really appreciate that and I just really appreciate the general services staff. They seem to always have a smile on their face I wonder how bad the redurried the job is so thank you very much. Thank you for your report. I think we're going to approve it and everything and I don't know on the vehicles which one's better the Ford Chevy or Dodge when it comes to the Sheriff's Department? Nobody knows. Maybe we can have them compete. I have a race out there at the fairgrounds. I'm sure you meant to include the Nissan Leaf that they have. You know kind of an interesting question do we buy local or the vehicles do we just go out for a bit? So with the vehicles we tend to use a purchasing co-op so because we get to join other governmental agencies in our buying power so we do use a co-op with the state of California I think is the co-op we use last. So we use the co-op with the state of California and they actually purchase their vehicles out of Sacramento or the dealership in California is out of Sacramento that the vehicles are processed through. Then you're also responsible for the Santa Cruz County fire and their facilities. So the operational budget of the Santa Cruz County fire does reside under general services. We have the portion of the contracted out to county fire with chief Larkin but that does reside under general services. We do have the facilities each one of the fire houses is maintained by the volunteers and or our agreement with county fire currently. You bet. I want to thank all of you for all the work you're doing for the county and you're very, very important part of how government actually responds and actually helps people pay their taxpayer after they pay their taxpayer money. This is a little offbeat but you were telling me a very interesting moving and personal story about a World War II veteran and if you want to share it it would be great. It is the anniversary of D-Day for World War II vets and also the Battle of the Bulges coming up too. If you want to share it, it deals with your grandfather, right? It does. So recently we had the passing of my matriarch grandmother. She was 95 years old, wore high heels all the way until she was 94. When she passed away we found happened to find my grandfather's war chest and included letters, 388 letters from home from the war and reading them are absolutely phenomenal and we've been going through them letter by letter in chronological order and we're only through about a year and a half right now and it's just absolutely amazing to understand who my grandfather was. A tank commander in World War II, he was at the Battle of the Bulge. He earned a bronze star. He was an amazing man. I just wish I got to know him more than just the letters. You bet. But there were quite a few letters right? Yeah, 388 of them. Wow. Okay. Thank you. Thank you. Professor Friend. Thank you. I just actually wanted to briefly thank your crew here because we have no departments actually have been immune since the recession. Every department has not been built back up but this department's been disproportionately not built back up while at the same time these buildings were absolutely beautiful in 1965 according to at least the planning department. They have some things in their office that shows that this building actually won an award which I don't know who was the taste decider on that one but with that said since that time there really hasn't been any significant investment in it and so you've got half of the crew working on things that are aging even more and we recognize that and to Supervisor McPherson's comment it doesn't matter which office I'm in whether I'm here or I'm in Watsonville I always seem to run into somebody from the team which is a remarkable statement for how small it is, how present they are still. So we recognize that I mean we don't have an easy solution for you. We've had good discussions with you but we hear the need and the reality is it's a discussion to even have with the community because there's really no constituency for facility upgrades in the same way that there is for a new park. Nobody wants a tax measure to remodel a county building or to even though it's actually it's just like with your own it's much cheaper to take care of yourself early on than it is to pay the medical bills on the back end. This is the same thing with buildings but it's hard to have a conversation with the community about the investments we need to make in this building in order to not have those investments on the back end but as far as you know that we recognize it and I think that everybody up here too appreciates the work that you do with limited resources and extended hours and I appreciate your leadership on it but I really do appreciate the line people and all the work you guys are putting in. Thank you. So is there any members of the public that would like to speak to us? Come on up. My name is Brian with the General Services Department as you all here know. I wanted to respond with a thank you as well for you hearing us and taking action actually inspires a lot of confidence in us that we see progress being made. Our new director and pulling off some amazing feats and I appreciate you working with him to help him accomplish those goals. Aside we have one concern outside of all the amazing progress that we've got and that's the two positions. I don't know if you have that slide showing or outlining our budget there we have two positions that don't appear on the 2021 budget and that's been going on for several years. Now these guys started off on a six month term and then got renewed for another six months and then they got another year and then another year and that was all under a previous supervisor who's now left the county these gentlemen are incorporated into our teams and into all the resources we provide and we can't really go without them. So we're hoping that maybe you'll pay attention to that and do what's right by them and get them into a permanent position after all the time they've served and that's all. Thank you. Good morning I'm Susan Cavalieri I'm with the Santa Cruz Climate Action Network back at the end of last year the county declared an emergency. We are facing a climate emergency we're facing extinction of species biodiversity is at serious risk and we as human beings are also. So I kind of hear a mixed message I hear about parking lot expansion. To me this encourages the use of single use vehicles and that is a business as usual approach. I do think that prioritizing the metro, biking, car pooling are the ways that the county should go. I like the idea of the charging stations but I do feel that most of the vehicles on the road are not electric vehicles and also with the potential rollback of the fuel efficiency vehicles we are at even greater risk when these fossil fuel vehicles are being used. I think that the county should also prioritize electric vehicles because of the fossil fuels and I believe the repair costs would be less so overall EVs are a better idea I'm also happy about the fuel efficiency for the county buildings the LED and solar and so I think as far as transportation it is really important to get people on board with alternatives to single occupancy vehicles. Thank you very much. Thank you. Seeing no further speakers close public comment back to the board for action. Second. I got a motion by McPherson and second by Leopold. Let me to say that this item doesn't reflect all the different things that General Services is doing to get people out of their single occupancy vehicles. We are losing parking spaces which is why we needed to think about additional parking spaces but we have a renewed effort in trying to get people to use alternative transportation modes that are also part of the action of moving forward with looking at this parking lot expansion so we care a lot about the climate change challenge and we're going to continue to work on it and General Services is one of our lead agencies to do that so thank you. Thank you. Alright we have a motion and we have a second. All those in favor please say aye. Opposed? That passes unanimously. Thank you and thank you to the team for the work. Moving on to item number nine this is to consider the 2019 to 21 proposed budgets for information services department and schedule the final approval of items on the continuing agreement list for the last day of budget hearings on June 25th 2019 is outlined in the referenced budget documents and the memorandum of the information services director. Good morning board. We're expecting you to tell us who your tailor is. You'll never know. I looked for suit hoodies but they didn't have any. I'm here this morning with my fiscal manager retired Lieutenant Colonel Masahiro Kamai who will be presenting the ISD's budget for you. Just to give you a quick picture of what we'll cover we'll do a little bit of vision mission what we cover some of our accomplishments from summary fiscal summary for the next couple of years I'll do some strategic concerns long term concerns that we have and then talk a little bit about our objectives but before I start I'd like to thank you all for giving me this opportunity along with Carlos and Nicole to run this department. It's been a privilege the entire time I've been here I love this job it's one of the most challenging jobs I've had. I'd also like to thank Dana who's been here with me the entire time going down the long road of software and hardware contracts. You're invaluable to me. I don't know what I'm going to do without you. Tibi McCann Tammy Weigel and Masahiro for all their help running this department. This is a hard department to run in my staff. I couldn't do this job without my staff I have really dedicated hard working staff who work ungodly hours. Who knows when around here to keep this place up and running. And lastly all the user departments for their support and assistance because without them I wouldn't be here. So to give you a picture we did a quick vision mission this year with the strategic plan. So we believe government must be resilient and responsive to the evolving needs of its citizens. We partner with all departments to apply the best technology to serve our collective users. We are a service department to the county we serve the county's residents through our user departments and to give you a picture of what the department's responsible for you all look at us most people look at what they think their PCs on their desk. That's a small piece of what the department does. We support the entire telecommunications backbone for all the buildings. There's about 45 buildings that are attached in to us. We support mail and duplicating services. We do programming and project management. We do general infrastructure which is our server our network and everything that's there to make it run. We also support the extensions into the cloud for some of the cloud systems. We have an integrated help desk we do GIS and we support public safety and general government radio services. Just a couple of things that we did this year. So we put up a communications tower in Davenport that's the first communications tower that anybody could think about for the last 20 at least 20 some years here. And that's that is up and running it's providing a lot more post coverage for our sheriff department. We did implement we implemented an electronic benefits enrollment so that you are when you had to do your sign ups for insurance this year that was all as an option you could do them electronically. That one wasn't advertised a lot but we've got a 35 percent penetration of county employees so I take that as a huge success. We also put a lot of enabling technologies up this year so these are foundation technologies that we expect the county to build off of. DocuSign is our e-signature platform that's the one as we go more and more paperless we expect to see more migration into that platform that was what was done with the electronic benefits enrollment. Laser fish is our electronic document management system that replaces an ancient one that we had which was Fortis that's currently only used by the assessor auditor environmental health and public works and we expect to see that expand over time because you can tie that in with e-signature. The other part that we're really investing a lot of effort in is our Power BI platform so Power BI is a business intelligence package so it lets you do a lot of data analysis and slice and dice and we're looking to use it for the performance metrics part of what the county is going to be doing in the forward in the upcoming years and that's available for the entire county can view these things and then there's some licenses for creating them. On our payroll personnel system the never ending payroll personnel system we did 225 enhancements this year we also added a web version of Citizen Connect so we had requests over the years of not just wanting the mobile platform but wanting a website so that went live this year. I'm going to turn it over to Masahiro now to go through some of our financial summary. Good morning. I'll orient you to the graphic here. I have expenditures to the left, revenues to the right. What it presents is a five year history running from fiscal 14 through 18 of what actually transpired as well as the year of execution or the current year rather and the two budget years. For those years with actuals that would be the history of the current year I present in the darker color what was budgeted and in the lighter color what the actuals were and the budgeted years were reflected in gray and the same methodologies reflected in the revenues to the right. And so what you can see is that 14-15 we're about 5% per year increase in budgeted expenditures and I jumped to about 8% 16-17 through the current year and what you see is a 6% reduction next year driven by special circumstances that we'll get into later followed by another 8% increase in 21 to follow the original trend. What you can also see is that we've consistently with the exception of the current year under obligated against our budgeted expenditures so we've always come in below and if you compare that to the actual revenues we've always come in ahead in terms of coming in in the black at the end of the year. So those are the highlights that I wanted to bring up there. For fiscal 20 we're looking at $17,232 $17,232,000 for the expenditures out of which about 62% is in salary and benefits. On the revenue side you can see that just about everything's in charges for services. We have about a 220k increase across the department in salaries and benefits which is less than you would expect for a department of our size and that's driven by the fact that we're unfunding an administrative position. You see a one-time reduction in our other charges almost half a million and that's because the county overhead is that was taken from us in a prior year and as an overcharge is being restored to us for the next fiscal year and that's why our budget is dropping in the next year. You'll see it rise right back up in the following year. The other special event is the reduction in the other financing upon the successful conclusion of Davenport Tower project and that came in about 400k under budget. So the next year half a million is the requested amount of which a little over 60% is going to be in salary and benefits alone. About 400k increase in salaries and benefits across the department about what you'd expect for a department of our size. Services and supplies show an increase partly driven by the restoration or the bias being charged the regular amount for our county overhead and the services and supplies get captured in our inter fund transfers across the department. Some areas of concerns I have moving forward so some of you know AT&T has stopped investing in their copper back bone. That's the our general POTS lines, the Plano telephone service, T1 circuits things like that. They have a hard time finding people to know how to work on that old stuff just moving everything to fiber optic. So we've been investing to try to move off of the copper back bone into the fiber optic transport. Our data center today I'm sure you all know sits in a floodplain with climate change and every year of storms I lose a little bit more hair during the winter trying to figure out if this thing is going to survive. So we're trying to hook into the long range facility plan as to eventually see if we can get a way of getting this thing out of there. And it's more than a data center. You see all of the state, all of the communications from the state and other things come into this building and then they distribute out from here. We're working, we continue to work on our contingency operations. So we have a small second data center over at Chanticleer and we have a number of our critical systems are replicated over there and will come up live if this building goes down. So we're trying to prepare for things like an earthquake where there may be an event here. So if the EOC is up and running some of those critical systems are still available at the EOC. We're going to lose dark fiber. So if you don't know when the original Comcast, well I was going to say Comcast, TCI cable franchise came in here. We were given extra little fiber circuits in the bundles that aren't part of Comcast. They were ours and it was given to us through that franchise. When we lost our local franchise and it went to the state franchise, dark fiber went away. It's not something the state picked up in the franchise agreements. We had an outstanding lawsuit with Comcast. We were able to keep the dark fiber longer. We have it through June 2021. It connects right now, it connects us to the Amaline campus and distribution of the buildings at Amaline are done through dark fiber and it also connects us to the jail. We're in negotiations to try to figure out what we're going to do when that goes away. Cost will go up. We have a proposal from Comcast who at the end of June 2021 have decided we should pay for it. So it's not cheap from them. We're just trying to figure out what all of our alternatives are at this point. We continue to work on cyber crime and cyber terrorism. I'll cover that a little bit in another slide. We're also looking at redoing our radio infrastructure and I'll talk about that a little bit and that's really our microwave backbone that we have up and running. So let's go through some of our operational plan objectives. Some of these I'll zip through quick. So we are you've all gotten a survey from us on our service delivery. So we're showing by June 2020 we're going to increase customer department satisfaction by 10% based on survey results and we're doing a couple of things there. You have the survey we've just put out which we're analyzing and still getting feedback on. My staff live through a ticketing system so the other thing that will happen is when someone puts in a ticket, the close of the ticket, the most important one for us, they'll get a one-question survey. Did we satisfy your needs? If yes, things are great, you won't hear from us. If no, someone's going to pick up the phone and ask you what could we have done better and that's what we'll be using to model moving forward. So on security we're in the middle of doing a lot of things on the security front. So there's there are things that we do that you all don't know and I don't want to cover in a lot of detail in public to protect the county network. We did have an audit from the Department of Homeland Security around our election system. They did penetration tests into the county trying to see if they could find weaknesses. We passed all of those tests. They were impressed with, given our size, what we were able to do. We are now going to be working with DHS on a couple other tests which I prefer to not talk about. We work with a multi-state group that does information sharing around security and we're always taking their input and we work with the UACI group over the hill. Now what we're focusing on is what I consider the weakest link, which is the 2,500 employees. I have 2,500 employees who can just click a button and cause problems. What we tend to think of that is we're one click away from disaster here. So that's why we've done the training program. Now unfortunately, we did baseline tests prior to the training program. We trained everyone. We did tests again and it didn't nudge. We have the same percentage failures which are too high. We're running over 10% click through of people clicking the links. They shouldn't be clicking. So we're going to continue training. We're going to continue looking at the training program to see if there's other ways that we can do to tighten it up. You should know there's been 22 known ransomware attacks against state and local government this year alone. In the last two years we've seen major entities hit like Baltimore, Atlanta, Albany, New York. We've had smaller counties like Imperial County just got hit a couple last month. San Benito County got hit. All of those are concerns and they're what keep me up at night. So another one, our radio shop. We're continue to work at improving the reliability of the radio system. We're in the middle of replacing a big chunk of the infrastructure now which was kind of unsupported. The new infrastructure works really good. We've got some things running on it right now. We've got public works running on it. We just moved fire yellow on it and we're going to be looking at the sheriff and the other fire and local governments on it right now. That's one thing. The other thing that we're looking at is our microwave backbone is part of that network. It's end of life. We're going to be looking at making it smaller and just connecting the critical sites. When I talked about the antiquated copper, a lot of our radio sites are up running on copper just because they're located out in the middle of nowhere. That's the only option I have. Those are always a concern with reliability. First rain comes in. We know we're going to lose some number of radio sites because that's what happens with AT&T. GIS is doing an update over aerial imagery. We're going to move that to a four-year refresh cycle. It's been kind of hit and miss as to when we've done it in the past. Public works really would like to see it on a four year cycle. We're going to commit to a four year cycle. This is a lot of negotiations that map price has to do with the cities and some of the other outside districts to get them to offset costs of updating our aerial imagery. This is one of our Primo projects. We're looking at improving our use of our how we do performance metrics. It has to do with how we resolve our problems. It has to do with how we use our ticketing system. This is a Primo project and we're trying to look at just how we do it, how things pass between our different parts of my organization and make sure that we can close things out and get things done correctly. Those are our objectives. But if you looked in the book, you're going to see that we're listed as collaborators on 38 other objectives. Those are the departments that we found out there. We also found an additional six objectives that don't list us, but will probably need our support to get done. So it's going to be a busy few years for us. But now just a couple of minutes on some of the things that I'm really interested in doing that we're early stages for, but I think are interesting. So we've been partnered with GSD on a couple of areas. You all have seen I'm sure the public when they come in that don't know where to go in the building. They're somewhat confused. You can't read the wall very good. So we're currently looking at adding an Alexa skill so that someone can actually at home or in the building just walk up to something and say where do I go to get this? How do I get this? Who do I see to do that? And then they'll get voice directions on what they should be doing then. We think this is going to be interesting. It can replace a chunk of our the question part of the website and we'll look at expanding it. We want to tie that to another interesting thing in Citizen Connect which is in building and in campus navigation. So the other one you've seen is people that are confused in our building. They can't tell where County Clerk is or where do I go to get this done? Where do I go to get my wedding certificate? And then when they wander the floor sometimes. So we're looking at deploying the technology so that you can actually from your phone be able to see a map and then get highlighted marks of where you need to walk to to get to find what you need. And if you're at Amline be able to wander through the Amline campus and figure out where you are. We're heavily invested before I do that one we are adding web conferencing into this infrastructure here in July. So that will enable us in the future to be able to run split board sessions so that we could actually have a South County presence and a North County running here through the same system running through Comcast and Charter at the same time. We're fully invested in the Primo stuff so we have three of the Primo projects. We have four people that are green belt qualified. We have three certified green belts and I have one master black belt in the department. A teaser for you you'll hear more from planning but we've been working with planning on an online application for over the counter permits. So it's a full one stop shop from being able to start the application through to paying and getting the permit without coming into the building. And I think planning will talk about that more during their session. And that brings me back to why we're here. We'd like to have you approve our budget. Thanks. Questions? Thank you. Thank you for the presentation. Thanks for the ongoing work. Whenever I've called ISD you guys have always been there. So I really appreciate that. The question about the dark fiber and the loss of that with Comcast my colleague would probably know the answer to this but the fiber, I thought Sinesis put that dark fiber right down Soquel Drive. And can we use that? Sinesis doesn't get close to the Emeline campus. Sinesis runs fairly close to us here but it doesn't go that path. It actually travels this side of Highway 1 down a significant part before it crosses over. Oh and I should tell you we did ask Sinesis for quotes on bringing replacing some of that and that was the highest of anybody. Sobering. What about wireless? Is that anywhere near the speed necessary? We always look at wireless and essentially the point to point things. So like with our May Avenue building we're point to point wireless from here to there. We'll be looking at it with the jail. Emeline's a little bit of a challenge because of the trees and the fact that it's sunk down a little bit lower there. We are looking at maybe using it between the buildings at Emeline but also looking at just pulling our own. Since we own the underground vaults over there, we have pulled our own between one of the buildings already so we can pull additional fiber on our own there. Yeah well it seems at the Sheriff's Center with Kaiser coming right down the street or the proposal and if we approve that they're going to have an interest in that same thing and I'm wondering if we could partner with them about the installation of dark fiber along that Soquel Avenue corridor and maybe making it less expensive to be able to do something over at the Emeline piece. It would be worthwhile. The other thing I just want to commend you on thinking about worrying about is the question of data security. You and I have talked about this a bunch. I know we all think about it when we read those New York Times stories about cities that are being held for ransom and just the vulnerability that we all face when I saw the numbers that came in after the training it was sobering and worrisome and I'm not exactly sure how you take human fallibility out of the equation because these guys are the people who are doing this are very sophisticated and it isn't just Nigerian Prince who's offering me money these days it's lots of things that might be more attractive for people to click on and I think we just have to constantly be thinking about it and we're going to have to try whatever we can to ensure that all those 24 or 100 or 2500 points of vulnerability don't get realized. It's scary. Thank you for your work. Any other questions? I have to take away one of your nightmares and change the basement to somewhere else. How big of a facility would that take to try to I'm looking at Tammy if she's here. It's smaller than what we have today. The stuff shrinks every year. That's good news. So we don't need something the size of the data center down here. The big issue is that it's the weight of the equipment so when you go out to look for a facility you have to look at something that has a subfloor that can maintain several tons of equipment it's not just the servers and things like that it's also the power distribution units it's the HVAC and things like that so when we look at a building we like to go into a new building because it's a lot easier than trying to retrofit a existing building and obviously be above the flood plain and out of like an earthquake zone. We always joke in the data center you probably pick the worst place to put a data center in this building because it's in a tsunami zone a flood zone and an earthquake zone but yeah we don't need a big space it just needs to be a space that can maintain that equipment along with the power. I just wanted to make a comment about the future which is the reality is that people are expecting to interact with government more through technology they're expecting to have things happen in a much more accommodating way where they're not required to show up during certain work hours in order to have things done and that will all fall exclusively on the back of your department as well as every other department recognizing that this is the way that the world is going. I recognize it's not the way it's always been but it's the way that the world is going and so I appreciate that we have at times slowly and at times actually made actually pretty significant leaves toward this end I think that the online permitting component that we'll come forward in planning is well overdue and I appreciate their willingness and your willingness to do that. I've been actually really impressed by the number of people in my district that speak to the power of Citizen Connect or its new branding name how much they like to have the interactivity so they feel like when they just submit a request they don't know what happens to it in this situation though they can track it and they get feedback. It's also less expensive as a service providing for the government to do this it's faster and as we received at the beginning of the day this reality that we're going to end up with additional cuts most likely leading in the future one of the ways that can help ensure that our highest level of service is still provided is through your department so I appreciate that. I had received in our communications about some of the cyber security that Supervisor Leopold was talking about that we do have a I mean literally thousands of attempts to penetrate the firewall every single day here and I don't think people think about things like Baltimore and they think about things like Albany and Atlanta but right here in our own county we have about 5,000 attempts to breach our firewall every single day and just put that in perspective every single moment somebody's trying to get in to this system so without you at that front line we would bring down every other component of the system here so I appreciate the work of your staff doing that and I appreciate you thinking about how we'll move to the future for those services provided in the school. Thank you. Actually I want to follow up on Sue as your friend's question which is you correctly stated that you are a service provider to the agencies or departments that are then service providers but how do you identify points at which the public is seeking to interact with the county that may have a good technological solution that you would know about the departments may not know about it whereas the departments know how people are interacting with them but you may not know what the departments are doing so what's that and so that's interesting and I didn't talk about that at all but we've instituted a new program inside the department just in the last few months where what I've done is assigned essentially a liaison person to each department. Their primary job is to learn what that department does and then be the conduit back and forth so that they would be my evangelist trying to propose to them here's technology solutions for what I see as your business issues while they're learning their business. Okay. That's a great I'm glad you're doing that. Thank you. Are there any members of public who like to speak to us about this item? Seeing none I'll bring it back to the board. I've moved the recommended actions for the information services department. Motion by Leopold second by Friend all those in favor please say aye. Aye. Opposed? That passes unanimously. Thank you very much. Moving on to item number 10 this is considered a 2019-2021 proposed budgets for personnel and risk management as outlined in the reference budget documents and schedule the continuing agreements list items for the last day on the last day budget hearings June 25th 2019 as outlined in the memorandum of the personal director. We have Ms. Patel here to speak to us. Good morning chair Coonerty and members of the board. Alongside with me today is Yurike Sagun our risk manager and joining us in the audience are members of our senior staff team. Oh clicker problem. It is my pleasure to be here today to present our department mission statement county workforce data department overview 1819 highlights and accomplishments the proposed budget request and our future objectives. In collaboration with our customers the personnel department will recruit develop support and retain an ethical professional and diverse workforce dedicated to serving the community. My staff and I are consistently impressed by the talented people who join our county team. I would like to thank each and every county employee from line staff to elected officials for all your tireless efforts as public servants and of course a special shout out to my staff who support me day in and day out our demographic during excuse me during the great recession our workforce was down to approximately 1700 employees. We have built the workforce back to approximately 2200 employees. Our demographics are ever changing and we see more employees entering government at different phases in their career which is a slight change from previous years. Our workforce is comprised of employees with varied backgrounds and based on the 2010 census staff representation is reflective of our community. The personnel department has four divisions that provide services to internal and external customers the employee relations salary administration is responsible for labor relations training negotiations contract implementation classification and salary functions. The employment services division handles the county's recruitment testing and selection functions. The Equal Employment Opportunity Office administers and monitors federal and state compliance programs and staff five commissions. The risk management division is responsible for risk mitigation liability and property workers compensation unemployment and benefits. Each division has completed a number of tasks this year. Ursa has partnered with the CAO's office to host our first ever CSAC Institute here in Santa Cruz County. Counties must apply to host and it is an extreme honor to market our agency throughout California in this manner. The risk division launched a new feature during open enrollment that allows employees to make changes to their benefits online. 446 employees utilized the fillable forms which eliminated paper usage, travel time, provided convenience and efficiencies for our employees and their families. This project also enhanced collaboration and teamwork between ISD and our staff. The EO division improved our course selection for Santa Cruz County learns by modifying diversity course selections to address employee needs within our organization. Staff recognizes that our environment is constantly changing and it is important to provide resources that align accordingly. The employment services division embarked on a few initiatives this past year. First staff rolled out a new marketing strategy that emphasizes the beauty of our coastal community and modernized our recruiting materials to add visual appeal. On the left you will see our old job announcement. On the right is our new. Additionally staff focused on branding the county of Santa Cruz. Our branding tactic is displayed in our materials and we invite each of you to help market our live here, work here and play here motto. On May 22nd the personnel department held our first annual county career fair here at the government center. Our goal was to reach our job seekers and take the opportunity to educate the community about county wide services. There were over 400 attendees. We had 100% department participation and our neighbors from the courts also joined in. The energy and spirit to collaborate amongst departments was heartfelt. We also included workshops focusing on resume critique how to get a job with the county and interviewing skills. It was definitely a festive event to be had for all. Attendees were able to enjoy food from food trucks and our chief probation officer played snazzy music throughout the event so we thank him and his friends. Lastly the employment services division continues to focus on their primo project. Our goal is to reduce the time it takes to establish eligibility lists to better serve our customers. Staff are utilizing the lean six sigma principles. They're currently in the defined phase which requires them to examine, analyze and assess the voice of the customer. Through this process we have determined that there are 100 steps to establish a list. At the end of June staff will move into the measure phase whereby they will use data to establish baseline measures and set targets to reduce the time it takes to establish eligibility lists. Targets will be set by December 31st of this year if not sooner. By June 2020 we will report back on progress towards our target goals. Our work on the recruitment process will not end here. The recruitment process involves outlying departments as they are involved in pieces of the recruitment in the beginning and certainly at the end when they are provided a list from which they interview and make selections. Our staff which now includes three green belt certified employees will work with departments to look at their systems and processes also. The concept of continuous process improvement is certainly not a one-time effort and we will continue to build a culture that includes improvements ongoing. Our budget premise is to maintain stability, manage our increasing workload and use internal talent and resources to keep the programs intact. We are proposing status crow staffing at 38 positions, a budget request of approximately $3.5 million for personnel administration and $46 million for the risk management division. Our budget challenge with the personal administration budget was to manage increases associated with salaries and benefits. Although over the prior five years we met our county goal of sero net county cost increase there is a slight increase in the general fund contribution of approximately $15,000 or 1.8% for the next fiscal year. The risk management budget is divided into six units that support essential countywide programs. Funding principles include operational costs, experience, exposure and reserve goals. Staff work closely with the CAO's office to establish departmental charges to fund these programs. We will be reviewing our funding principles this year to ensure that we are conforming to industry best practices. One area that staff is focusing on following in your board's footsteps is to ensure that reserve levels are increasing. I would like to briefly highlight a few of the funds. The liability and property program protects the county from losses or damages to others and county property. Claims history goes up and down and staff works closely with departments throughout the year to mitigate the risk. We will begin the next fiscal year with approximately $5 million in the liability and property reserves which is the move in the right direction based on actuarial goals. The workers compensation fund is utilized to manage costs associated with industrial injuries. The number of ongoing claims is decreasing and we attribute this to preventative measures, training and case closure of some long time claims. This reserve is 42% funded and staff intends to focus on improving the fund balance. Some approaches to building the reserve will include closure of cases within a shorter time frame and exploring strategies to decrease operating costs. The UI funds support costs associated with employee turnover. We have met our goal for these reserves which are based on experience and exposure. As we move into the next fiscal year I would like to highlight a few of the initiatives that are included in the operational plan. We share workspaces. We are looking forward to working with general services and information services to create workspaces in south county that can support and improve work-life balance for commuters. Employees who otherwise drive in each day can reserve a workstation in south county which in some cases may enhance service delivery efficiencies and productivity. The program is dependent on available space and will be tested as a pilot. We will determine capacity and survey departments who may have a need for this type of work and select pilot participants accordingly. An important goal in our strategic plan is to focus on our county workforce. By June 2020 the personnel department will develop an established employee engagement platform. An employee survey is essential to this process and understanding and exploring the needs of our existing workforce. The information obtained will help develop resources to address employee retention, growth and engagement. We look forward to utilizing technology to improve employee access and convenience. To that end we will promote online benefits transactions. An example of this is adding an online adjustment feature to manage deferred compensation contributions and smartphone access to workers compensation claim information. We look forward to your ongoing feedback as to the work that we're doing on the initiatives I've highlighted and others in our operational plan. As you can see we have a busy year ahead of us which also includes negotiations with a number of the bargaining units and as always we look forward to working with our labor partners in finding a balance that supports harmonious labor relations. In conjunction with the CAO's office we recommend that you approve the proposed budget as outlined in the budget documents and with that I will conclude my comments and staff and I are happy to answer any questions that you may have and please note Enrique War a suit in a tie also because we're asking you for money too. Alright, we're increasing our tax base with suit sales. So any questions or comments? Enrique wears a suit every day. So he can't get away with just this one situation of asking for money because I know that. But I would do want to actually compliment you on a few things here. Obviously the branding campaign is great. I've just seen the visuals around here and seen it around the community and I think it does make it an attractive application for us. But in addition the telecommute function for lack of better terms to be able to have a shared workplace. Now while I didn't write a book on it like my colleague I will say that it really is something that we need to move toward that work isn't a place you go but something you do in the sense that for those of us that live in the South County area I mean any sort of small percentage of people moving people off of that commute would have other tangential benefits. I mean we're the second largest employer, we've got the university in us a disproportionate amount of the workforce lives in the Mid to South County if we're going to have all these other initiatives that we talk about from making sure everything's solar and we've got climate change action plans and yet we do nothing for the workforce that's actually doing this commute and contributing to this then we obviously aren't fully practicing what we preach. So I would like to see this move beyond a pilot program forward. I think it's an important thing for us to realize that it's the way things are going to have to be is for the more affordable housing is and how do we respect our employees well not making them have to choose between whether they can make it to their kids baseball game or not because of the way that the commutes are. There's something we can do better in that regard and I think this would be a small but very important step toward it. So I appreciate that you're taking that the suit does look good. Thank you, thank you for the presentation and thank you for the ongoing work. The times in which the board has had to interact with personnel on hiring a new CAO or looking at other pieces you've been very useful and I appreciate the help that you and County Council have given for other recruitments for other local agencies like the Regional Transportation Commission the Metro etc. The objectives and key steps that are in the operational plans are all excellent. I particularly just want to highlight things that you didn't talk about but I think are also very good. One about the gender neutrality in our and all of our documents and recruitments. I think that that is useful and follows along with what the board is trying to do around our code. So I appreciate awareness and taking active steps to make that happen and then you have your key part in helping maintain morale here in the County Family and some of these objectives look very interesting to help do that and I'm wondering if you could talk a little bit about what you see as part of the Community Reads website and what goals you see there the success of that effort. Sure I'd be happy to do that. So the Community Reads website is actually an effort that we have created in collaboration with the CAO's office and we should be launching that fairly soon actually and the idea is that we want to put a website out there where interested employees can look at what we're all reading together and read something together for our professional development and of course it's voluntary they can choose to partake or not but the idea would be that we will also have throughout the County we'll select a book and then we will have some community discussions which will be held at lunchtime or they could be held at evening time and leaders here in the community will be able to say on a link I'll be holding a book read at this place please join if you'd like to discuss and we'll do them at different locations in the campuses we'd like to do one at South County Amaline so different leaders can pick where they'd like to go but we don't want it just here at this building the idea is to be able to get out there and discuss with employees our professional reading ideas thoughts and how we can do things differently and just all kinds of different ideas depending on what book we're reading and the idea is to also connect with other employees across County many of us we work in this building we see each other we don't always get the opportunity to go out to different locations and connect with other employees and so while we're looking to do that as leaders we would like to see our line staff and all connect across the way too and so the website is actually almost ready and we should be launching I would say actually a little earlier than we put in the objective plan for a month and what kind of books would so they would be books on how to lead how to communicate how to interact and what we will be doing is selecting books with the CAO's office and we've actually got a couple in the pipe that we're looking at and so I don't want to give too much away about which one we're picking so I want you to stay surprised all right thank you just a couple comments first of all the branding and the interaction partnering with UCSC to bring some potential students and potential employees down here was great it'd be great if we could the demographic the slide that you had on the age demographic of our workforce it'd be great if we could see that over the last 10 years just to see how what changes have happened second is the workers comp being funded at 42% it also be nice to know how much that number is coming down because there's one way is to increase reserves the other way is to have the workers comp number come down right and then so the trends that we're seeing in that would be helpful and then the last part was as Fred mentioned it's incredibly important that we provide people flexibility on where they work it's also important to provide flexibility on when they work and for the hard to recruit positions the flexibility around time or part time what we can do to be able to attract the people we need in the county understanding that people for a variety of reasons may not want to work here full time but may want to do job shares or other opportunities I think that's going to be the future is figuring out how people can plug in and in targeted ways into our workforce if any other questions or comments I'd entertain them sorry I'll ask if there's any public comment seeing none I'll bring it back to the board I move to recommend an actions for this department so we got a motion by Leopold and a second by Caput all those in favor please say aye opposed that passes unanimously thank you very much thank you uh moving on to item number 11 which is to consider the 2019 proposed budgets for the CAO's office including the clerk of the board has outlined in the reference budget documents and scheduled the continuing agreements list for the final approval on last day budget hearings June 25th 2019 has outlined in a memorandum of the CAO I'm going to sue it again today let's want money good morning everyone members of the board Mr. Chair we have a tag team presentation for you today on the CAO's department budget I will be kicking it off and ending it but then we will be passing the mic across the four of us today you can see I don't have the clicker consistent with the rest of our presentations this week we'll be providing a quick departmental overview some review of our highlights over the 18-19 year we'll then move into our proposed budget spend some time on our county initiatives and key objectives for 19-20 and through and then we'll close with a recommendation for the budget as you are well aware our department consists of both our county administrative office and the clerk of the board these slide here presents our overall legal responsibility and functions but we also as you know manage the considerable number of initiatives around performance management from strategic planning operational planning performance measurement continuous process improvement the cannabis office economic development and homeless services we are a very full office with a lot on our plates I'm going to move into our highlights for the last year I was really excited to see already some of our departments talking about their involvement in Primo in its first year as you know we launched in the fall we had five in playing engagement sessions in December and January and that was actually at the direction of this board in terms of doing increased engagement with our workforce this photo here is a photo from one of the sessions at Emmeline they've been very well attended and some of the feedback we've gotten on the first year is to keep doing them and both of that has been do it within departments to promote attention and sort of synergy within departments around Primo and the principles and tools but also to continue doing that in the final engagement because people like to meet other people from departments and talk about potential improvements we a key part of our Primo program has been demonstration projects when we reported to you in the end of February we had cited 11 central projects we now have a second cohort of Greenbelt training actually being sponsored through the whole person care initiative and we have seven additional projects that are going on so we're up to 18 Primo projects that are underway we continue to work on our real goal of building internal operational capacity and that's through training of our managers our lean practitioners or really the folks who are leading the projects and then departmental liaisons to continue working on general awareness and engagement with that I'm going to pass it to Nicole so Nicole Covern assistant county administrative officer so good morning this board adopted our first strategic plan last June when we were here wrapping up budget hearings and so one of the big tasks this year was to promote the plan both with departments and throughout the community so we deployed posters and outdoor banners at all of the county campuses which are visible here at 701 as well we distributed over 2500 brochures and we have made our trifolds available both in English and Spanish and we'll continue to make all of our materials available as we continue through the six years of the strategic plan this year we've also developed our first two-year budget and accompanying that is our first two-year operational plan so the two-year budget as you know provides greater transparency and shows what were the counties headed over the next two years along with it is our blueprint containing our operational plan objectives of which there will be 178 so that guides our work and we've been working closely with our departments on that as you know this year we started to kind of get a feel for performance measurement by working with three departments specifically probation parks and the human services department on a pilot project we've been working to develop internal and external dashboards by which we can display the outcomes of some of their programs along with that as you heard on the ISD presentation Kevin Bowling is working with us on a Power BI reporting platform we're going to be collaborating closely with ISD as we move forward into the larger performance measurement initiative to display our outcome measures online we've also been collaborating with data share Santa Cruz County and the community assessment project to work on identifying population level indicators that we can use as our community indicators that show what impact we're having within the community we plan to report to this board on the preliminary results of our dashboards this fall and here graphically you can see the look and feel for how we're going to be displaying the progress on our objectives we're going to be highlighting our website next week to you on the 25th when we come with our final operational plan I'll turn it over to Melody Melody Serino deputy county administrative officer last year the county administrative officer launched the three year learn engage apply and perform program to help develop new leaders in the county family the objective of the program is to value and encourage the active participation of employees at all levels in strategic planning performance measurement and process improvement the program is designed to help develop a common language and culture provide analytical and problem solving tools and encourage cross departmental collaboration participants attend classes once a month for a year and then through our partnership with the California state association of counties they also receive their senior executive credential and then for the clerk of the board office the office continues to focus on improvements to technology expanding training and providing easier access to information to increase the quality and efficiency of the agenda process Christina Mallory county budget manager so I'm going to give you a quick overview of the county administrative office and clerk of the board budget here you can see a representation of the current year and the next two fiscal years 2019-20 our recommended budget provides for an increase of $335,098 in expenditures in an increase of $25,607 in revenues resulting in an increase from the general fund of $309,481 the majority of that is salaries and benefits for existing staff the 2020-21 projected budget estimates including projected budget assumes a status quo operation and reflects known changes for staffing with a projected increase to the general fund contribution of $332,431 and the majority of that is for the staffing costs so here you go see budget highlights it's essentially status quo operations it supports the 18 funded positions we have one unfunded position in the clerk of the board's office and it supports the continuation of the initiatives including to your budget program budgeting strategic and operational planning performance measurement Primo Santa Cruz our continuous process improvement elite program and the long range facility master plan in addition we have funding that's been provided for the 2020 census outreach and we have some funding expenditures and some funding available from the state included in the budget there we go so during 2019-20 the departments will be updating their 2021 projections based on any additional information and a revised recommended 2021 budget will be presented to your board during next year's budget hearings hopefully a brief or shorter budget hearings depending on the number of changes that we have to present to you and planning is already underway to develop program budgeting by 2021-23 staff will be reviewing the budget structure with the departments in order to make modifications to the existing system to allow for program budgeting in order to increase transparency about the cost of various county programs and services our objectives over the next two years include increasing public communication and engagement last year we provided the public access to an online budget tool at secbudget.com and very pleased to show you today that we've made some improvements to this this year we've expanded the tool to not only include the second year budget but we then expanded it by including the ability to drill down even further so here you'll see the graphical presentation it starts off with the general government categories the various budget categories you can drill down merely by selecting so here's the representation of general government and all the general government departments you can scroll down here you can see them individually you can scroll down even further looking at the assessor recorder and you can see a graphical presentation of the assessor recorder budget and the various divisions and then you can scroll down further within the assessor and see the unique assessor GL key so now we can drill down all the way below beyond the divisions to the general ledger level so this is the assessor and then when you scroll further you can see the budget broken up by characters you'll see salaries and benefits services and supplies and then when you scroll further you can get all the way to the line item detail here so here you can see regular pay differential pay social security and then at the bottom here now that comes up is you'll see a brief overview of the department and then a link directly to the budget document so the public can go out they can drill down they can look at the information they can see a graphical presentation of the information all the way down to the general ledger key level and the line item detail and they can click directly to the budget document for each department and eventually our plan is to incorporate all the initiatives together and an easier to use system but this is what we have for now okay thank you so just go back so as we look to better integrate our initiatives we are researching and reviewing other budget and data software options that create more options for participatory budgeting with the public and easier access and development of the presentation online so here we have our strategic and operational planning initiatives we have presented the proposed 2019 to operational plan it contains 55 strategies and the proposed plan had 172 objectives there are six that we're hoping to present to you as part of the final plan next Tuesdays for a total of 178 based on the feedback we have received from the board and the community developing the operational plan as you know was a process through a steering committee and six subcommittees that worked throughout the year to conduct engagement both internally and in the community we believe the plan reflects our county values and will reflect equity and sustainability as well each every department has every objective excuse me has at least one collaborating department and many have more than one we plan to track and update progress on the plan by annually at our vision Santa Cruz county website which you see there at sccvision.us and this website is actually going to refresh next week when we come to the board with the final plan it's going to show it will be very dynamic you'll be able to drill down into each objective and the strategies and sort it by department and other various ways so that you can see progress on the plan and we plan to present that next week so I just wanted to show a small number of our objectives we are going to have 14 total as a department so here are four for you today one is our capital policy objective which Elisa is going to address a little bit later regarding our facilities master planning and campus master planning work. We also have our process improvement objective which relates to Primo Santa Cruz we're going to be sponsoring some additional staff and projects in continuous process improvement and Elisa will also address this. We have program budgeting which Christina just spoke about which we're going to present a two-year budget with financing at the program level by June of 2021 and then last but not least we've been spending a lot of time on the US census this is a very important project for us over the course of the next year as we move towards census day April 1st of 2020 we have our complete count steering committee and subcommittees which are working on doing census implementation and we have we've been having monthly meetings we're taking the month of July off but we're going to reconvene in August and continue to meet monthly as we meet the state requirements for doing US census outreach. Performance measurement as has been mentioned this morning we started a performance measurement pilot that was conducted this year but we plan to expand to the county wide rollout of the larger performance measurement initiative next year which will be working with more departments coming up with a training plan for staff. There are two main elements to the initiative one is developing our community indicators which will be on a dashboard online on our vision Santa Cruz County site for each of our focus areas and then also we'll have more specific department dashboards that will adopt the results based accountability framework which addresses how much we're doing of something how well we're doing it and what impact is it having so we plan to come back this fall with some more information on our dashboards and our public facing website so we will stay tuned for that. We have a quick preview for Primo year two obviously we're going to continue to build on year one success a lot of that's going to really come back to supporting the 18 projects we have underway as our teams exit from the actual formal training program we want to make sure they have the structure for sort of maintaining their momentum sticking to the principles and tools and really actually expanding from just the project team how is it fitting within the department and the department's culture around continual process of improvement. One of the things we're learning is as these teams start it's creating a lot of very positive engagement and energy and they're looking for some more structure and ways to focus that and sort of maintain it over time. We'll continue with our multi-layer training approach one of the feedbacks we've gotten from folks who are participated in our champions training and so that was really department and division leaderships that had projects nominated for the first year they had a training a full day training in January they kind of got their checklist but they're sort of we were meeting with our teams but we still want to get some support on how do we lead differently in a lean environment so we plan to do some more training around coaching from a lean perspective another area of feedback we've gotten and this really comes from the team's use of a training technique which was just a white belt training an hour video training that they frequently asked their colleagues that were involved in whatever process they were working on to do before they started getting together to do whether it was process mapping you've seen the swim lane maps or some of the other tools and the suggestion has been how do we come up with a strategy to provide this one hour training for as many employees as possible so we really all share the same vocabulary around lean as they are invited to be part of the work so we'll be working on that and then that third element is now that we're going to have I guess between the first group it's about 49 folks who have gone through the green belt training in these two cohorts how do we support them to sort of maintain that investment we've made in them and then they can do that to bear in their either their home department or their supporting other departments moving forward I do want to mention one specific aspect of the whole person care cohort most many of those folks participating are from HSA in behavioral health and specific but they've also invited community partners to be part of that green belt training since that's such a core part of how we provide service for me it was a very it was great to hear that we were going to be sharing sort of our lean journey and bring some of our community partners along with us in a very tangible way another aspect is we will continue that engagement process with employees and do as we've called sort of the road show around projects so staff who may not have been involved in a specific project still get to see how it works and so we'll be we plan to be doing that and lastly we want to spend more focused time on the just do it this is this is that low hanging fruit that people start identifying and really trying to figure out a way to capture that get credit for it so people actually can celebrate what they've been doing and really continue to encourage folks you don't have to go to a green belt training to implement continuous process improvement you can do it in your own work space in your own workplace every day so year two will be just as busy as year one it's great though we have a lot more people who are now familiar with lean to participate in and continuing making it grow the last initiative I'm going to talk really briefly about is the long range facility in camp campus master planning process this board approved going forward with a request for qualifications for a consultant in April for us to support this work we have gone to consultant review and interviews and and we'll be working on selecting and developing a scope of work and bringing a contract back to the board in August this work the scope is really going to focus on long range facility planning and focusing first on freedom campus in here at ocean and then the deal here is we're going to be focusing on where do we go in the future based on operational needs we want to really understand how do we have folks in the right place it does come back to the we work concept it comes back to where where are our customers traveling to and from and how do we inform our future facilities based on current needs it will also set that broader policy about how do we want to organize ourselves at our campuses and then also really look at what opportunities we do we have potentially with surplus property to use other community priorities as articulated in strategic plan and the most clear ones that we've articulated are around housing and then potential other economic development opportunities so we expect to bring you that contract in August and really think that work will start kicking off in the fall of this year so that is our summary of sort of the key objectives for the CAO's office going into the next fiscal year we ask your for your recommended budget as referenced on these pages and we're having to answer any questions this ambitious plan and I think what's most encouraging is you're following through with what you said you were going to do and I just think the team effort about it has been very well received by the employees that I've talked to they're really excited to say this is the real deal they want to know what we're what we think and how we can implement programs in the future so I really appreciate you know just standing up and going out and getting it as you have especially for our CAO Carlos Blasio on down I think this is a tremendous program and I can't believe that we have what now 178 objectives I had 172 for some reasons somehow but I guess a couple more got added I think I added one or asked for one across 22 departments so I think this collaboration in the end is going to energize our employees but better or more important than that it's going to better serve the people of Santa Cruz County so thank you very much Thank you for the presentation from all of you it's clear that we have great leadership coming out of the CAO's office start to the top but you four play a key role in going out there and communicating that vision and working with the individual departments and I just want to acknowledge that great work I think that the pre-mail process the lean initiative those are all great pieces and it sounds as though we're off to a good start and thinking about how we deepen it and make it continue to be successful past the initial burst of activity but to make it an ongoing part of the county culture I did have one question about the operational plan as it relates to the fit pilot it was unclear to me exactly what that what we were trying to accomplish in this and what we might expect because these dates seem slightly different than the dates that we previously talked about I'm going to have to look at the actual objective to make that comparison what I can say is when we came to the board in February the expectation was we would come back in September with initial review of the data of the program so the two year objective aside we do plan to be back in front of this board in the fall to talk about the first six plus months of operations and what the experiences are but let me look at these to reconcile your question a little more specifically I just for everybody else it's on page 116 and it says by June 2020 the county administrative office will coordinate a report on outcomes of the focus intervention team pilot program with the share of coroner and health services so we will do that as well that will then give us a lot more data but our intention is to come back in the fall with preliminary results and then we'll continue to report on the annual and biannual basis. Yeah it's a major investment and I'll make sure we didn't want to go a year and a half before we sat down and figured out what we were doing so thank you. Any other questions let me just say I really appreciate it to the extent that through the Primo process or even the just do it process that the board can recognize people who take that initiative and sort of help raise attention and also appreciation for people grabbing a project and trying to make it happen don't hesitate to let us know because we want to support people who are engaging in this process and thinking about their work differently. Thank you we'll fit you into the road show. Okay perfect and alright so uh Surveyor Caput. All right well first any public comments seeing none I'll bring it back now. Go ahead. There's no public approve. Got a motion by Caput a second by McPherson all those in favor please say aye. Aye passes unanimously now we will recess to reconvene at 7 p.m. tonight for the zone seven board of directors meeting at 7 p.m. and then at 7 30 for continued public hearing on the budget at the Civic Center Plaza 275 Main Street in Watsonville. You have a quorum are there any changes to the agenda today Mr. Strudley? No they're not. Alright now we'll open it up for oral communications this is an opportunity for members of the community to address us on items that are not on the zone 7 agenda but within the purview of zone 7 would anybody like to address us tonight okay. We do. Can I? Yeah please. Director Belicich? Well first of all I'd like to announce that the City of Watsonville has submitted a benefit cost ratio resolution to the National League of Cities and we hope to hear back on June 24th whether that goes through and will be presented at the National Conference in Austin in November. So we followed your lead. I appreciate that Director Belicich. It would be great you know the county and the city if we're together it'll be a perfect thing. Appreciate that. That's one thing. The other thing is that the legislators are I think trying to have a meeting here September 6th I'm not sure if that date has been confirmed but Jimmy Panetta our congressmen and other senators state people they're supposed to come. We believe it's going to be on Friday September 6th so you can put that on your calendar as a tentative date I have to say that the county and the city have done a great job on Bridge Street trying to get rid of all of the weeds that we have there and it was looking really good and it's starting to grow again so I think it's something we may need to address in the near future before the 4th of July would be great. Thank you. Anybody else for all communications on the agenda? Chair if I may provide a comment about that September 6th date that's a legislative conference that's being organized through the Pahar River watershed flood prevention authority and I don't think that date has been confirmed although that's the anticipated date and so there'll be invitations circulating once that date is firmed up through the FPA. Alright so we'll now move on to item 4 which is approval of the Zone 7 Board meeting minutes. Are there any questions on the minutes? Is there anybody from the community that would like to address this on the minutes? We'll move back to the board for action. Is there a motion? We have a motion from Director Leopold, a second from Director Bilisic. All those in favor? Aye. Opposed? That passes unanimously. Move on to item 5 which is just the action on the consent agenda which happens to be? Item 6. There's one item on the consent agenda. Are there any questions or concerns about the consent agenda item 7? Anybody from the community that would like to address us on this consent agenda item? Okay we'll move back to the board Director Bilisic. Make a motion to approve. So we have a motion for approval of the consent agenda from Director Bilisic and a second from Director Leopold. All those in favor? Aye. Opposed? That passes unanimously. We'll move on to the regular agenda. Item 7 is the first item of the regular agenda which is the Board of Directors of Zone 7. A public hearing on Zone 7 assessment rates for the 2019-20 fiscal year to hear objections and protests if any and to consider adoption of a resolution confirming the rate report is outlined in the memo of the district engineer. We have the resolution confirming the assessment rates in this summary of the assessment rates. Good evening Mr. Strudley for this item. Thank you Chair Friend, members of the board. On March 26th, 2019 the board adopted a resolution confirming the previously approved increases in assessment rates for Zone 7 for the 2019-20 fiscal year. There is an attached summary of those rates included with this agenda item. Further, the board set today as a public hearing for the 2019-20 assessment rate report for Zone 7. So in order to complete the 2019-20 assessment rate proceedings, we recommend that the board open public hearing and hear objections and protests if any to the proposed 2019-20 assessment rate report for Zone 7 and close the public hearing. And also adopt a resolution confirming the written report on assessment rates for the 2019-20 fiscal year. Thank you Mr. Strudley. Other questions before we open up the public hearing for May the Directors? Okay, this is a public hearing. We would now like to open the public hearing. Anybody from the community would like to address us on item 7. Seeing none, we'll close the public hearing and bring it back to the board for action. We'll move. We have a motion of the recommended actions from Director Bilicich and a second from Director Leopold. All those in favor? Aye. Opposed? That passes unanimously. Moving on to item 8, which is the Board of Directors of Zone 7 to consider the 2019-2021 proposed budgets for Zone 7 as outlined in the reference budget documents in the memo of the District Engineer. We have the proposed budget. We have the narrative, the attachment B, the semi-annual report from July to December, the proposed budget, the capital improvement detail in the continuing agreement list. Mr. Strudley again. Thank you, Chair Friend, members of the board. The June meeting is our annual budget hearing meeting and the budget for Zone 7 was previously approved by the Watsonville City Council at its June 11th, 2019 meeting. The process is that the budget is then approved by Santa Cruz Board of Supervisors following the Zone 7, your board's approval and that will happen later this week. The budget that we include for your consideration here has recommended capital improvements in the amounts of $2,534,536 in 2019-20 year and we're also presenting information to you in accordance with the new procedures for the county two-year budget cycle. So we're also presenting the 2020-21 information for you, which includes the capital improvement of $2,315,176 These budgets are required to have a zero dollar unappropriated fund balance for each of the two fiscal years. So we include information on the expenditures and fund balances in the attachments. Notably Packet Page 19 has the fund summary with summaries for the capital improvements as well as the information on reserves and fund balance and revenues. The Packet Page 20 is the capital budget or fixed asset detail for your consideration for both fiscal years. Page 21 outlines some budget detail for maintenance operations in the two years proposed budgets and we have budget narratives starting on page 23 for the budget detail for both fiscal years. And with that, it is recommended that the board consider approval of the 2019-21 proposed budgets for zone 7 flood control and water conservation district as outlined in pages 309 and 532 and the ERADA, which is also included as an attachment, and accept and file the semiannual levy inspection report, which is also included as an attachment to the sport item. Thank you, Mr. Strahle. Any questions from directors on this item? Director Bilsich, please. I notice that we have a contribution to the Army Corps. Is that out of this budget? So we are still including a contribution to the Army Corps under the hope that we will be able to secure some work plan funds from this year's upcoming fiscal, federal fiscal year budget cycle. So the Army Corps has made a capability request and we have injected appropriations language into the House Energy and Water Bill, which is moving through its paces right now. So we hope to secure those work plan funds. Thank you. All right, we'll now open it up for the community. Anybody in the community would like to address this on the budget? All right, well then I'll bring it back to the board for action. Director Bilsich, please. Yes, I'd like to make a motion to approve the budget. We have a motion from Director Bilsich. We have a second from Director Leopold. I assume that's for all the items on the list. Director Bilsich? Yes. All right. All those in favor? Aye. Opposed? That passes unanimously. Move on to item 9, which is the board of directors of zone 7 to consider a status update of Pump Station and the Coastal Resiliency Project for the lower Watsonville Slough is outlined in the memo of the district engineer. Just as a reminder, this was a request of the board previously that we come back with information at this meeting. So we appreciate that you fall through on that Director Strudley. Thank you. So item 9. Thank you, Chair Friend, members of the board, and Director Caput responding to your request from the January 15, 2019 meeting to return to the board to discuss flood risk reduction associated with the Shell Road Pump Station in the lower Watsonville Slough area. After much consideration and background work, along with information that we've obtained on potential costs of a remedy to Shell Road Pump Station and the fact that sea level rises and expected to slow down anytime soon, we would like to pursue a much more comprehensive project through the Pajaro Stormdrain Maintenance District, looking at a combined safety benefit project in the lower Watsonville Slough. The objective here is to reduce flood pressure to reduce or eliminate the need to breach the Pajaro River Lagoon, which is an expensive endeavor and difficult to permit time-consuming issue, and also to remedy the aging Shell Road Pump Station and to analyze what the most salient approach is with that specific facility. The approach that the Pajaro Stormdrain Maintenance District is taking is to engage the Army Corps of Engineers, a completely different set of individuals, may I add, from the Army Corps that deals with flood risk reduction. This is through the Continuing Authorities Program. The funding mechanism is completely different and already authorized, but the idea is to embark on a feasibility and initial 35% design phase project with the Army Corps of Engineers, and it would be cost-shared between the Army Corps and the local sponsors, and the Pajaro Stormdrain Maintenance District has sent now three different grant applications to various state agencies to cover the cost-share component for the local sponsor, the Pajaro Stormdrain Maintenance District. So the objective is to have all costs covered to examine what the most reasonable approach is to deal with sea-level rise and including flood pressure in the lowest portion of the watershed. And so I'm happy to answer any questions, but the recommendation for the Board is to accept and file the status report on the Shell Road Pump Station and the project that we are proposing, which is called the Coastal Resiliency Project for the Lower Watsonville Slew. Thank you, Director Slewley. I'll start with some exciting information actually to be presented. Director Caput, I believe you have some questions. We're talking about the Pajaro Dunes, right? Correct. That is a component of the... Yeah. And really has anything actually been done in the last ten years? I think money was voted for to go towards that project for the pump. And where has that money gone? Right. So last year we proposed an line item in our Zone 7 budget to address capital improvements at Shell Road Pump as had been articulated in the formation documents of Zone 7 as one of the higher priority capital improvements. We put in a line item for $300,000 in that budget. It was approved by our Board last year. We used that money to embark on a feasibility analysis to look at securing hazard mitigation grant funding to support Shell Road Pumps and other facilities. And it didn't pan out. And we also our engineer in Zone 7, Rusty Barker did some analysis on the history of that pump station and the alternative analysis that was done in the past. And it's become clear to us that a much more comprehensive solution is probably warranted. Sure. And the reason it's more comprehensive is we're dealing with salt water coming in and also fresh water flowing out, right? That's where they meet. It's comprehensive because there's a lot of different problems that are associated with flooding down in lower watersheds. So part of the salt water issue with the lagoon affecting farmland, affecting road passage. We also have the emergency breaching program, which is something like we would like to get out of the business of doing if possible. But also the multi-benefit aspects of a project are necessary to leverage state funding and grant funding. And that's the business that the state is in supporting nowadays for these types of projects. And right now, is there a pump that's not working right at the Shell pump station? No, it's working. There have been a couple repair jobs when it's had leaks, but it is functioning, operating as it was designed. Right. Okay. If it were running at necessity and we were able to get work done on it, would that eliminate the necessity of breaching the sand? No, it wouldn't eliminate the need at all. Okay. So what would the benefit be then? The benefit of this project. The benefit of this project would be providing additional space for the water to go in the tidal prism in the slu. So you'd provide more space for it, rather than relying simply on the pump station to evacuate water and the breaching program to eliminate the flooding concern. You'd provide more space for the water. And in doing so, you'd provide opportunities for habitat for recreation, for public access, and also for improvements to the facilities like the breach road crossing over the slu. And do we have a ballpark figure of a total cost if we were able to do everything we wanted to do? We don't have a total cost for implementation of a project. What we have right now is a figure of roughly 1.5 million for feasibility and 35% design plans and specs. And again, the idea is to share those costs evenly split between the Army Corps and grant funding coming from one of the various state agencies for which we've applied for grant funding. Right. I guess one of the complaints we've all most of us have had is when we're dealing with the Army Corps we give them a lot of money and they collect it. They're very good at cashing the checks. They just put it off and they put it off. So we're trying to get grant money to kind of do an end run. So I entered into this approach with some hesitancy and reticence because of our history in dealings with the Army Corps. But what I've come to discover not only is it a completely separate group of individuals under a separate funding mechanism that's already authorized, been authorized by Congress. The projects under the CAP authority are much smaller and they tend to have a much higher success rate. They tend to be executed in relatively quickly. One of their recent projects through the Army Corps district was executed by Sonoma County Water Agency on Dry Creek and it was a pretty large project. It was a $10 or $15 million implementation project but it was implemented in a couple of years. So the expectation is following a roughly two year period to get through initial feasibility and 35% design that we can move relatively quickly in the next two or three years to get through the rest of design and implementation. Thank you, anybody else? Please. Thank you, Mark. Great report. I've been involved through the Pajaro Valley Water Management Agency with related problems down in that reach and as you know the water agency has a project on Harkins SLU which has not been able to take water because that flood, when the King Tides come over and top, they go five miles up the SLU and render the water agency's project where they take water off the SLU completely unusable because of the salinity. The last 20 years down there I've seen those farmlands right close to Pajaro Dunes get inundated with saline water and I know that renders them unusable for several years. So I think the opportunity there to follow some of that land and turn it into wetlands maybe kind of like a soap late thing to attenuate some of the flooding is a fantastic opportunity so I'm really delighted that you all are proceeding with this. I think it will be a win-win for a lot of different purposes. Thank you. Thank you, Director Bannister. Anybody else before you open it up? It's not an action item but for anybody from the community who would like to address us on this item. Please. Thank you, Becky Steinberg. I'm a resident of Aptos but I have had friends over the years that live and work in the Pajaro Dunes area and I applaud your efforts Mr. Strudely to help that area and hope that to strengthen the grant applications that the fire station that is also there would be certainly considered and you could get some letters of support from that agency. They are the first in for many incidents on San Andreas Road in that area and in flooded times that emergency response would be hampered. Thank you very much. Thank you. Anybody else on this non-action item? Okay. Thank you for that work. Is this consideration status item updates? There was no direct action item. Correct. So move on to item 10 which also is a non-action item which is a manager's report for zone 7. So is the board of directors zone 7 to consider a status update on the Pajaro River flood risk reduction project as outlined in memo of the district engineer Mr. Strudely. Thank you Chair Friend. Members of the board, we are still moving vigorously on our Army Corps flood risk reduction project for the Pajaro River. We are, as I've told you several times before at our past meetings that we're kind of on hold with the Army Corps right now awaiting the hopeful work plan funds later this calendar year. At this point in time we are moving through the paces of initial work towards CEQA Environmental Review. I will note that in the board memo here it's noted that the notice of preparation submittal is scheduled for early September. It will likely be later than that due to some recent activity that we've had with our program management consultant since the writing and submission of this board memo. It's become clear to us that we need to do a little bit more thinking and work on some locally led alternatives to the project to help leverage both state and federal investment and we don't want to short circuit our CEQA process by prematurely moving too far along that process without having the right alternatives analysis in place. We won't really sacrifice anything towards the project and in fact it puts us in a much better position to have the right alternatives analysis and make sure that our money is well spent towards CEQA Environmental Review. Our program management consultant is still working diligently with us on governance and finance aspects. We've had now the first two governance and finance committee meetings, the second at which we presented some basic conceptual finance to give the committee a rough idea of the rate assessments that will be considered. We're also moving through the final stages of internal review of our draft JPA agreement and within the next month to month and a half we'll be circulating that to the potential member agencies for their consideration and review. We're continuing to coordinate with the Army Corps of Engineers both on projects or aspects related to the flood risk reduction project as well as some lingering aspects of the PL-8499 repairs that were completed last summer. There is one site remaining on Salcepoides Creek on the opposite side away from the city that still needs to be repaired. That was misidentified in the original report from the Army Corps and they've agreed that they're going to repair it. So we are nudging and poking and prodding them over the last month to go and repair that and finish the slurry seal that they're going to coat the levee trail, levee top road on Salcepoides Creek with to complete that repair. We continue to work with our state partners at Department of Water Resources both on our subventions authorization as well as brainstorming potential ways in which we can leverage state funding for multi-benefit components of the project. We've had some very promising discussions with DWR through Assemblymember Mark Stone's office and we've also had a visit facilitated through the City of Watsonville, thank you City of Watsonville with Assemblymember Rivas out on the levee and I had the chance to speak with him about a week ago for about 15 minutes about the project. So we've had some very positive indications coming from the state about their interest in our project, supporting a more adaptable funding mechanism that leverages both state and federal financing and we're very hopeful of those funding sources and getting a lot more support from the state than we have from the feds. That is all I have to report to you on the progress so far and it's recommended that your board accept and file the status report on the Pajaro River flood risk reduction project, happy to answer any questions. Any questions from directors on this item? Director Caput? Sure, thank you. I know this is very difficult and you keep going forward which is wonderful and I don't know, can you just give a brief overview for about the joint powers group we're trying to you know form and I think there was good news and bad news when we had the meeting of the BCR benefit cost ratios gone down but we do have a plan to actually start working which would be a first for the last 40 years as far as when we're talking about the flood prevention project. So I don't know, just give a brief overview of that. What's exciting to me is that we would actually be moving some dirt, we'd be actually doing something and not just still waiting for the Army Corps to give a go ahead. Sure, I'm happy to read some more detail on this. Yeah, so the benefit cost ratio for the project did slip more since we last spoke. It's now down below unity to 0.96. There's not a lot of satisfying reason why that is but the end game here with the Corps is that 0.96 benefit cost ratio is not all that different from something slightly above unity. Ultimately the game is still the same. We're still at the bottom of the barrel in terms of their ranking system and it means we're going to have some stiff competition and some challenges securing federal investment. That being said, you mentioned some excitement about potentially seeking some support from the state. We still have a lot of hurdles to go through including CEQA as well as financing the project through the governance and finance activities that we're pursuing but there is some promise coming from the state. They're much more willing to support a project like ours with the benefits that we've described. We've actually received the recommendation from DWR to try to secure our subventions funds in the absence of the Army Corps. That along with some other kind of opportunity whether it's directed or competitive funding from the state, potentially open some doors for us to secure funding to pursue components of the project that the Army Corps would be less interested in pursuing and those would be the pieces of the project that have the smaller benefit cost ratios as measured by the federal government. So for example that would be sides like the Monterey County side which the Army Corps does not weigh the agricultural advantages of the protecting that side nor the disadvantaged community structure of the town of Pajaro in very high position in their ranking system but that is, those are the values that the state is very interested in protecting and so there is some opportunity there. The governance and finance committee is working towards developing a joint powers authority and we are working towards forming a joint powers authority as was initially recommended through the 2016 governance and finance committee and that was reiterated again in the restart of the governance and finance committee several months ago that that is the direction that is resist to take in terms of forming a governmental body to oversee the capital improvements and long term O&M of a project that straddles the county boundary and includes jurisdiction, protects jurisdiction in the city of Watsonville. Yeah and I won't belabor this but we're doing it, you're moving forward which is wonderful. There's two huge agencies that are involved always with flooding one of course is the Army Corps, their responsibility should be a preventative work and then you have FEMA which comes in and is reactive and pretty much has to pay the bill after it floods. They don't seem to talk, they don't seem to get along. They're almost working against each other. If I was the head of FEMA I'd be furious with the Army Corps because the government is spending a lot more money trying to fix something after the fact rather than preventative cost. Yeah I agree it's a bit perplexing how they operate independently and sometimes at odds with one another. We share that frustration. The reality is that it's going to be very difficult unless something really amazing comes through from the state to pursue this project independent of the Army Corps authorization that we have there's still some good money to be leveraged from the federal government. It's not to say that we can't do it independently but it's not very likely and we will be having more discussions with FEMA as we move through any kind of construction that would ensue from the project because our objective is to reduce or eliminate a lot of people's flood insurance premiums. Thank you, I'll open it up now for the community. Anybody in the community would like to address us on this item? That was a non-action item so that's the end of the zone seven agenda. Thank you for those that serve on zone seven for coming in. Director Banister, Director Vilsich, appreciate you coming for this. Welcome. Now we'll continue the public hearing on the 2019 to 21 proposed county budgets as outlined in the reference budget documents in the memorandum of the CAO and I'm going to ask as the Board of Supervisors convenes first I want to let anyone know in the audience that we do have translation services available so if you would like translation services please access them right over here. Second is I'm going to ask Mr. Palacios to give the presentation that he gave this morning outlining the overall state of our county budget and the plans for the next two years. We were going to, she went to go get the remote. Can you change the, move the screens or no? Oh you can? Okay. So I'll go ahead and start then. So today is the first day of county budget hearings. We will be having budget hearings all week Monday through Thursday in the morning tomorrow evening we will be in Santa Cruz at 7 p.m. also and then next Tuesday we will have our final day and approval of the budget and the operations plan and the supplemental continuing agreements enlist on Tuesday at the board meeting in the afternoon at 1.30. If you could go ahead and move it. So I'm going to cover county initiatives and our operational plan. Give a brief overview of our budget both for the budget year with just 2019 and 20 and then the second year of our budget which is 2021 and then I will briefly talk about challenges and opportunities. Go to the next one. So this combines the work plan that we have set out for ourselves in the county. We have last year began a strategic planning process. This is a six year time frame for this document. In that process we developed six focus areas and within each focus area are four overarching goals. So there's a total of 24 goals for the county and we adopted that last year after a great deal of community outreach. This year we are for the first time adopting our operational plan. It's a two year document and our two year budget and that also is the first for the county and so the operational plan and the two year budget are meant to implement the strategic plan. Implement each of those goals that are outlined in the overarching strategic plan. Following this year, next year we will begin program performance measurement and that will be a major new initiative where we will be evaluating our programs and seeing which are most effective. We will be doing a lot of training next year with our staff and also some pilot projects and then we will continue implementing our continuous process improvement or primo effort that began this year with some pilot projects and will continue into the future. So this is how our, there's the focus areas, the six focus areas each of them has four major goals within each focus area and then you can see this planning cycle all revolving around the strategic plan and we've basically finished the first part of that and this year the strategic plan, operational plan two year budget. There will be three operational plans and three two year budgets within this strategic plan cycle and then we are just now beginning performance measurement continuous process improvement. This lays out how the strategic plan relates to the operational plan. The strategic plan tells us who we are, what we stand for and what we want to achieve in terms of our goals and then the operational plan tells very specifically what we will do and how we will do it and how we will fund it. This was the time frame for the strategic plan. Basically we've been at working on it for more, for about a year. Started with the internal steering committee that worked throughout the fall and then in the this year and winter we began the actual outreach to community groups and then by April we had meetings with focus groups, key informants and community outreach and now we are at the point where the board will be adopting it. We had on the operational plan this year we had outreach throughout the county both north, south and mid county focus groups and community meetings. This is an example of how the operational plan ties to the budget. So this happens to be objective 64 which is on page 30 and page 146 of the operational plan. It says by June 2021 health services will increase access to health care by decreasing the wait time for the next available appointment from an average of 1.3 days down to 0 days. And that is the objective and then in the budget if you were to go to page 173 of the budget you would find this item which is funding new staff at Emmeline and Watsonville, list the staff and the cost which will allow us to get our wait times down to 0 basically service on demand for our clinics. The board has been very prudent in managing our finances over the last few years we have tripled the amount of our reserves. We've now reached our 10% goal. We've reduced pension obligations both through the board's own actions and through cooperation with our employee groups. We've been controlled employee growth. We actually are at less employees still to this day than we had before the great recession in 2009 and that despite the fact that we've actually increased the amount of services that we're providing the community and we've also made some big strides in dealing with some of our deferred maintenance issues. We have augmented services this year just to give you some examples the nurse family partnership, Thrive by 3, whole person care and Medi-Cal drug expansion all have worked to improve community health. We've also made major new investments in our homeless services expanding our shelter emergency shelter and other services homeless services especially to our youth. Finally in the area of public safety we've opened new facilities at Roundtree and Blaine Street and the Sobring Center all designed to reduce recidivism and transition offenders back into our community. I'll now give you a very brief view of the budget we'll kind of go through this pretty quickly. So this is the overall budget. It shows the adopted budget in the current year which is 2018-19. It shows the proposed budget which is 2019 and 20. You can see that the general fund has grown by about 18 million dollars and then it shows the second year of the budget and this is the first time that we will be adopting a second year budget although it will be in effect not a legally binding document. In the second year it's really more of a detailed projection and that shows a total of 570 million dollars in the general fund. The total budget of the county has grown to about over 800 million dollars. You can see it kind of varies due to capital and that's the variance that you see there. Our staffing is about 2,400 employees. It's still less than we had before the Great Recession. These are our major revenue sources. You'll see that our property tax is going to grow about 4.5% in the budget year and then in the out year it's about 3.5% so we're seeing some slowing cannabis business tax estimated to grow about 5%. Sales tax 4% in the budget year and in the out year 3.5%. The TOT or hotel tax is projected 5% growth for each of those years so we're seeing some slow down in our major revenues. Our property tax actually is about half of our discretionary revenues and you can see that is slowing in the budget year. This is just another view of the growth in our property tax and sales tax. We can go to the next one. So this is the entire budget. If you look at our entire almost $800 million budget and you can see health and human services are about 40% of our entire budget. You can see that in the entire budget public safety is only about 8% and general revenues for the county only are about 20% total. These are all our revenues and you can see that over 40% of our revenues come from state and federal sources and only 23% come from taxes. This is our funds, all funds again are for 1920 and you can see again the distribution of the expenses and health and human services being the major one. This is our staffing and you can see that almost half of our staff in the county are almost 2,500 staff are in health and human services. You can see public safety is about a quarter. General fund revenues, again you can see that in the general fund which is about $552 million almost more than half of it is health and human services. This is the expenditures in the general fund and in the general fund 60% are for health and human services, 26% public safety. This is our discretionary dollars so this is what we call our general fund contribution or we used to call it the net county cost. It's grown to about $162 million. These are those revenue sources that are discretionary for the board so they would be equivalent to a city's general fund and you can see that it's grown from when I first came here. It was about $125 million, it's now $162 million four years later. You can see that more than half goes to public safety of our discretionary dollars. This is just a summary of our general fund revenues and expenditures by category. I'll now look briefly at the 2021 budget so this is the out here and you can see that once again we are having net fund balance available of about $6.2 million. You can see in the very left hand column 18-19 that's the adopted budget. We had fund balance of about $6.2 million. So that's the amount of money that you have at the end of the year when that's from salary savings and budgetary reversions and you can see in the 19-20 that's the budget years about the same amount. The problem begins in the out year 2021 when we have $6.2 million of fund balance but we also have a shortfall of another $6.4 million. So we would need $12.6 million to balance the budget. We are counting on $6.2 million as our normal fund balance that's available. So we project a shortfall at this point. Absent any changes in 2021 in the out here. For example of our budget deficit in the out here this year 19-20 that's the very item on the left. You can see it's a balanced budget. So this budget year we are balanced but in the out here 2021 we have a deficit of about anywhere from $6 million to $12 million. The $12 million would be as if there was a recession that kind of decreases slightly and by 2024 we're in much better shape but you can see in the next couple years we're going to have a difficult time balancing budget. The general fund reserves have grown steadily. The board has been very committed to fiscal prudence and you can see that we are now over $58 million of reserves and it's 10% of our general fund revenues. So the challenges and opportunities that we face in the coming year let me just go through those real quickly. Behavioral health and substance use disorder we have actually made a great deal of progress. We've invested many new funds coming from the state and federal government but we still have a lot of challenges ahead of us given the opioid crisis and the homeless crisis and so forth. Parks and Recreation we have historically under invested even though some major investments, some of them due to grant funds and some of them due to Measure G, the county's Measure G which allowed us to invest in our parks and about six parks are being partially funded through Measure G. We've made some progress in deferred maintenance but we have a ways to go. This is all our facilities where we just haven't had the money to invest in the past and that's probably one of the areas I most worry about. We have had new resources from SB1 which is the state gas tax, Measure D which is the local half-cent sales tax and we're actually putting some of our own funds into road storm drains and bridges as well but there's still a long way to go in deferred maintenance as well as the storm damaged roads that we had from 2016 and 2017. So as the budget year the good news is that we're a balanced budget we haven't had to make any cutbacks this year so that's the good news but the bad news is that in the out year 2021 we see costs rising faster than revenues we're worried about a potential recession approaching. We're also worried about the housing shortfall throughout the state of California and the impact it has on our community and then we also worry about the winter storm damaged roads shortfall as well because we have not seen the same reimbursements we had hoped for from the federal government there seems to be a lack of funding available for disaster aid and that is having an impact on our county budget. Some of the opportunities are potential new revenue measures our transient occupancy tax is at 11% and there's communities in our county that are at 12% some communities in Santa Clara and Monterey are at 14% so that's something we should take a look at. Also our 9-1-1 fee has outdated in that it is not it hasn't been updated to take account of modern technology and then we should look at CSA 48 and how county fires being funded and see what we can do to make sure it's more sustainable long term. We've done a great job of leveraging public and private grants and partnerships. We have reserves that we can use if we have to. We don't advise it on an ongoing basis but we do have reserves that the board has set aside and then we have a very low debt ratio of only 1% of our general fund expenditures which is very low and so and actually the majority 2 thirds of our debt will be paid off within the next decade 8 to 10 years actually. So we've been very prudent the board has been very prudent in the past and that's put us in a good position to weather whatever storm lies ahead with a potential recession. So that concludes my presentation. We will continue with our work plan. Our operational plan into your budget will be adopted this year we will continue with performance measurement and continuous processing improvement and again we are urging fiscal restraint given the challenges ahead of us. Thank you. Are there any questions from board members? We heard all this presentation this morning. I had a lively discussion. Now it's an opportunity for members of public to speak to us about items that this item if they wish or the budget overall. Thank you. Becky Steinbrenner thank you for that good report. I would appreciate if there were copies of that, hard copies of that available for the audience. It's very good. Thank you. It bothers me. I was able to very quickly today look at some of the staff memos on some of the items that are of particular interest to me. From what I could see public works which you will, budget which you will consider on Wednesday is going to see decrease from what I see a 5.5% decrease in the coming year and then after that a 20.4% decrease. I understood that there's some complexity there because of the funding of the storm repair and all that but I would like a bit of clarification with Measure D and everything that infrastructure continue to be repaired and I understand this one of the challenges. Also in a part of the documents I read today there's still $17 million in the redevelopment successor agency. I'd like to see what's going to happen with that. I would like to know in terms of the health and human services where the $10 million state grant money that we got is going to go. In terms of items that you addressed today that I could not attend the hearing for, I'm a bit confused by the budget contingencies that they will go down 52% this year and down further 28.9% next year and I don't quite understand that it seems to be tied to general revenue but I would like explanation of that as just a citizen to make sense of this very complex budget. At a time when we're looking at $6 to $12 million deficit I question whether it is prudent to continue to increase the CAO budget. I see that's going to get a 7.6% increase this year and I don't think that's right. I see that the Board of Supervisors Office will take a modest 1.2% increase this year but next year when the deficit is predicted to be very high their increase will go up to 4.7% and that doesn't make much sense given what you've just said here. I have big concerns regarding county fire. I have, I would like to know if in your pie charts county fire is included in public safety it should be and if it is it should be funded with this money. I know that you are... Thank you Ms. Steinberg your time's up. Thank you I've made a lot of effort to come here tonight and I appreciate your patience. Thank you and you asked a lot of complex questions. We won't answer them now but if you put them in an email the relevant staff can try to respond. Thank you. So seeing no other speakers I'll bring it back to the board. There's no action. Is there anyone else who any other questions or comments from board members? Okay seeing none we're going to continue our budget hearings to 9am tomorrow morning at the governmental center at 701 Ocean Street and we'll be there both tomorrow during the day and tomorrow night to give people an opportunity to participate in the budget. Thank you.