Board of Supervisors - Regular Meeting

robin can you see and hear us okay yep i can see and hear you perfectly perfect thank you so much thanks

At this time, we will be reporting out from the previous closed session and then reading out the two closed session items that we will be breaking for until 9 o'clock.

Clerk report out from July 28th closed session item 1, pursuant to government code 54957.6 conference accounting, designated labor negotiators, Teresa Hitchcock, Judy Hawkins and Shay Johnson regarding the following employee organizations. Deputy shares association. Service Employees International Union Local 1021, Sheriff's Management Unit, Board Action, No Reportable Action Taken. Item 2, pursuant to Government Code 54956.9 , Conference with Legal Counsel, Re-existing Litigation, Tressler v. County Workers Compensation Appeals Board Case Number ADJ14477062, Board Action, No Reportable Action Taken. item three pursuant to government code five four nine five six point ninety one conference legal counsel regarding existing litigation riddell versus calaveras county at all united states district court for the eastern district of california case number two two six c v zero five seven seven board action no reportable action taken Item 4 pursuant to Government Code 54956.91 Conference with legal counsel re-existing litigation California Sports Fishing Protection Alliance versus Eastern San Joaquin Groundwater Sub-Basin Subsistence Sensibility Plan et al. Stanislaus County Superior Court case number CB200172, zero board action, no reportable action taken. Closed session today for August 11th, item 1, pursuant to government code 54956.91, conference with legal counsel, re-existing litigation, California Sports Fishing Protection Alliance versus Eastern San Joaquin Groundwater Subbasin, sustainability plan et al. Stanislaus County Superior Court case number CB20001720 to item 2 pursuant to government code 54957A consultation with Calaveras County information technology security personnel regarding in matters posing a threat to the security of public buildings essential public services their public's right of access to public services or facilities or a threat to critical infrastructure controls or critical infrastructure information relating to cybersecurity. That's all.

Is there any public comment on closed session items? We have no online public comment for closed session. We will go into closed session and we will be back here at 9 o'clock. Thank you.

Thank you.

Welcome to the August 11th, 2026 regular meeting of the Calaveras County Board of Supervisors.

Mr. Tothinelli, will you lead us in the pledge?

This is going to be the pledge and the flag of our country.

Ms. Simpson? Staff announcements?

Yeah, but nothing to report.

Um, no, we have nothing to report out at this time. We are going to be going back into closed session at the conclusion of the regular agenda.

Thank you. All right stop announcements.

Hi, Stacy.

Good morning board members. Today I'm pleased to announce that Valerie Spake with Senate District 4 is here to recognize and acknowledge the many contributions of two outstanding Calaveras County women. First is our very own Chief Probation Officer Kim Craddock in honor of Probation Services Week. Then following Probation Chief Craddock, Penelope Alderson will be recognized as the Veteran Woman of the Year for our Senate District. Valerie, thank you so much for being here today and the floor is yours.

Thank you. Good morning Board, good morning Chair, good morning residents here and online. My name is Valerie Speig. I'm the District Representative for Senator Marie Alvarado-Gill and I'm here for a couple reasons that were mentioned, but before I get started, I just want to thank, because the Senator is in office for a limited amount of time, thank you for your collaboration and support. I've done a lot of work with Supervisor Huberti on the Caltrans issue, and all of you have been so great to work with, so I want to say thank you for that. The Senator appreciates it, I appreciate it. And just to let the folks here know that I know the senators been on and staff have been on the collaborative calls regarding the fire. So, now, to the main part of the programming, acknowledging some amazing women here today. Provation. So, a couple weeks ago, it was probation services week. The Senator had me prepare certificates of recognition for the probation staff. So I was able to go out to the office and present it to all the staff who are doing amazing work in the county. And I thought it would be appropriate to acknowledge Chief Probation Officer Kim Craddock. I've gotten a chance to work with Kim. The Senator had a bill before the Senate Appropriations Committee, SB 1109. It was addressing the many issues that the STRTP homes are facing, and that is the short-term residential therapeutic programs. essentially this bill addresses the challenges of these homes that are faced in rural counties not only for the residents for the budgets the county resources it's a real challenge that bill did not pass the work will continue it needs to be addressed legislatively Kim's comments in the hearing and her letter of support were phenomenal so thank you for that collaboration it was very effective I thought so With that, I'm going to read an abbreviated version of the certificate, and I'd love to do some pictures afterwards. The California State Senate proudly recognizes Chief Probation Officer Kim Craddock in honor of her exceptional leadership, unwavering commitment to public service, and nearly three decades of dedicated service to the residents of Calaveras County. Since beginning her probation career as a juvenile deputy probation officer in 1997, The time goes fast, doesn't it?

It does.

Chief Craddock has devoted her careers to strengthening public safety and advancing the mission of probation. Throughout her distinguished service, she has held assignments in juvenile supervision, adult court services, intensive supervision, drug court and specialized sex offender supervision before being promoted assistant chief probation officer in 2014. Following her appointment as interim chief probation officer in December 2022, she was appointed chief probation officer in May of 2023. Your commitment how supportive you are with your staff your strengthening partnerships partnerships within the courts law enforcement schools behavioral health providers community organizations local leaders you are enhancing public safety amongst the youth adults and families in the county and your service is so much appreciated so i want to thank you for that and i'd love to get some pictures uh if possible that's fabulous yes They're amazing. Thank you. And should we come through here? Okay. Want to go ahead and go for it. I'd love to get the pre. Okay. And then I'll get you back on the clock.

Oh, so let me see. Okay. Thank you.

Okay, I have one more resolution to present. The recipient is not here. but I am going to present it anyway because she is one amazing lady. The Senator has the Women of Distinction Awards per county. For 2026 that was given to Penelope Alderson and I am going to read it so it's officially in the record and it's also now officially in the state senate record as well. Penelope Alderson whereas Mel B. Alderson has been selected as the 2026 Calvert County Woman of Distinction for this fourth senatorial district, and it is appropriate at this time to highlight her many achievements and extended to her special public recognition. And whereas the state of California boasts of a rich history of women who have made invaluable and far reaching contributions to the well-being and improvement of their communities, and included among those stellar women is Penelope Alderson, whose accomplishments as a military veteran and community leader has been of great benefits to the people of Calaveras County and beyond. Whereas a proud veteran, Penelope served more than 30 years in the United States Army, during which time she had seen the rank of Sergeant Major, served in the military police and held various assignments in which she provided invaluable leadership and counsel to troops in her command. And whereas in her civilian life, Penelope has provided guidance to the local veterans, navigating a variety of issues, including claims with the U.S. Department of Veterans Affairs and personal matters, she has further shared her time and energy with the veterans community by serving as a caregiver and providing food and other types of support for veterans residing in Calaveras County, where she has also championed other causes. And whereas Penelope Alderton has made significant contributions to the well-being and improvement of the Calaveras County area, and she has served as a respected role model for public-spirited people throughout the state of California, resolved by Senator Marie Alvarado Gil and Penelope Penelope Alderson be congratulated on her selection of the 2026 Calaveras County woman of distinction for the fourth senatorial district commended for her exemplary record of professional and civic leadership and extended sincere best wishes for continued success in the future I think everyone knows that there's so much support um that not only people in service but when they're out of service and how much they give back to the veterans in the county so individuals like Penelope do so much for the veterans and it is to be acknowledged it is official now. I'm not sure why she's not here but we're going to make sure it gets to her and I'm just glad that it was officially acknowledged here at the Calaveras County Board of Supervisors. Thank you again for allowing me to have this time today.

Further staff announcements. With that, we'll move on to public comment, but I have a few things I'd like to say before we start public comment. First of all, can everyone stand up that's here for the data center today to talk about that? Okay. Okay, and then everyone that would everyone that's here to talk about the fire ish the fire issues, could you please stand up. or raise your hand either or I see I see more you gentlemen are. um okay so i'm just going to talk noise.

Yeah, I would, I would like to see if the board would like to change the agenda items a little bit. 1st, would like to do number 19, which is a share proclamation emergency and then do number. 20, which is fire. and then go to number 17, which is the data center. We have a long agenda. Those are near the end, and people would have to be here for all day maybe just to get up and speak. Because you can't speak about an agenda item during regular public comment. You have to wait to that agenda item is being presented and the staff has presented it. And then you have an opportunity to speak. So I'm just trying to get everybody an opportunity to speak on what they want to speak about without having to be here all day.

Um, so that would put it just taking a real fast from what you said that would put it 19, 20, 17, 16, and then 18 in that order. Are all the board with moving the agenda around like that to facilitate comment from the public. All right, very well done.

Okay. And then before public comment, I would also remind you that there is the fire issue. On the agenda. there's also the data center, there's also the proclamation for the disaster. And so any things that are on the agenda, please reserve your comments for said agenda items and keep public comment to things that are by the board that aren't on the agenda. And we're gonna reserve it for half an hour And we're going to stay solid on half an hour for public comment, any public comments that don't get in. At the beginning of the meeting within that half an hour, what will be, they will have the opportunity at the end of the meeting to have their public comment. So, 3 minutes, Stacey.

Any item of interest to the public that is within the subject matter jurisdiction of the board and is not posted on the consent or regular agendas may be addressed during the public comment period. California law prohibits the board from taking action on any matter which is not posted on the agenda unless it is determined to be an emergency by the Board of Supervisors. If public comment is completed before the 30 minute allotted time period, the board may immediately move to the next order of business. If public comment is not completed during the allotted time period, it will be continued as the last item of business in order to provide an opportunity for the remainder of the comments to be heard.

Please proceed, Mr. Butler.

My name is Christopher Butner, publisher of CalaverasWatchdog.com. I respectfully request the Board of Supervisors direct an independent review of the Calaveras Visitors Bureau's financial management, reserve accumulation, historical legal corporate status, and economic value before a funding decision is finalized September for fiscal year 26-27. This request is based on publicly available records including California Secretary of State filings, IRS Forms 990, contracts with Calaveras County and the City of Angels Camp, CVB presentations to the Board, and the CVB's published reports. According to Secretary of State Records, the CVB has been recognized as a California nonprofit mutual benefit corporation since July 12, 2021. Because later contracts with the county and city described the CVB inconsistently, I ask that those agreements be formally reviewed to conclude whether they accurately reflected the CVB's legal corporate status when executed. The CVB's IRS Forms 990 also show that during the four fiscal years ending June 30, 2025, the CVB reported year-end net assets ranging from approximately $518,000 to nearly $638,000 while continuing to receive annual TOT-funded allocations. Those filings indicate recurring CVB operating surpluses and substantial accumulated reserves. While responsible reserves are appropriate, the CVB's accumulated reserves raise the policy question of whether annual allocations have exceeded the CVB's demonstrated spending capacity. The CVB has reported numerous marketing activities. However, as of today, no county-specific marketing attribution analysis has been publicly presented demonstrating that these activities produced measurable TOT increases in countywide economic outcomes attributable to the CVB's marketing efforts. Likewise, statements regarding avoided marketing costs of $360,000 may demonstrate operational efficiency, but cost savings alone do not establish increased tourism or economic return on investment. The Board must direct staff to independently evaluate whether the CVB's Restricted reserves are appropriate whether current TOT allocations exceed demonstrated operational need, whether reserve policy should be established, whether prior contracts accurately reflected the CVB's legal status, and whether future funding decisions should require objective county-specific decisions. performance measures tied to measurable tourism outcomes. Public funds should be managed with transparency, accountability, and measurable public benefit. This matter must be placed on a future board agenda before future funding decisions are finalized so an independent financial performance review of CVB can be completed. My name is Christopher Butner, publisher of CalaverasWatchdog.com. Chief Johnson, that's where your TOT money is.

Good morning. Good morning. My name is Peggy Flynn. I live in Railroad Flat District 2. I'm a retired public school chief business official and director of facilities planning and construction. I spent 27 years building public buildings and not once did I use a general funds operating budget. My comments today focus on upcoming construction of the new district attorney building. Your district attorney told you on June 10th that she does not know if she can afford walls or the roof or the floors. Let me tell you why she said that. That morning your staff said it will cost a little over $6 million. You have $5.494 million dollars budgeted. That's a $506,000 shortfall and you have not yet bid it. Here's what's not in that number. There is no contingency. Every public building carries one, a reserve for what you cannot see yet. Five to ten percent is normal. It is the first thing you budget. That morning you budgeted contingency for the landfill, but not for this. There's also no escalation. The state's own rules say you carry about five percent a year for inflation between the day you estimate and the day you build. Nobody added one dollar. And hear this, the district attorney was supposed to move into that building this month, August of 2026. She said, so from this room on June 10. 2 years late, and every month it slips adds about 23,000 dollars and there's no contingency for the bid when only 2 or 3 contractors bid a public job. The low bid typically comes in 10 to 25% over the engineer's estimate. When only one bids, that could be 25%. I'm not adding this together. They stack one on top of each other. Your own chief executive officer said that morning, spending one time many this way is a quote, recipe for disaster. That's how counties go bankrupt, end quote. County capital, she said, is gone in two to three years. Funding sources identified for this project Include no loans, no grants, no, no bond funds. It does include general fund money though. And if the bid comes in high, and when there are change orders during construction, it will come out of the general fund only. It's already 2.3Million dollars in the hole. This same board took the fire district's entire share of Prop 172, $300,000 of public safety money listed in your budget as a donation to a community organization next to Meals on Wheels. Everything I have said is in the county's own record of the recording of June 10th. These are not my words. They are yours. It is on YouTube. The bankruptcy warning is at 56 minutes. The money is at one hour seven. Do not take my word for it. Watch your own meeting. Thank you.

John Potter, um just to remind everyone agenda items are posted So if anything's on the consent agenda, please hold your comments till till the item that applies to other than that your public comment as well, thank you.

Hi, my name is Angela Patterson and I live in Arnold. I'm here to discuss and request that the Board of Supervisors consider their acceptance of the budget that is proposed. And I'd like to draw your attention to the demographics of particularly Arnold, which is threatened with a closure of one day of its library. The demographics in Arnold is very unique, and it includes a very significant low-income and homeless population. It includes the workforce, which is particularly low income again, and then seniors who are there and also a difficult financial time. The other part of the population is tourists. And we understand that the tourist income that comes in to the county is significant, if not the biggest in the county. So we would like to encourage you to consider that in any of your decisions that you make. All of these people who live in Ireland are vulnerable and it is well known that the health and wellness of people in these vulnerable populations can really affect their lifespan, and also their need for further medical attention and paramedic attention because of their isolation. The library fulfills a lot of those needs. It's very much more than just a book place. In Arnold particularly, what we see is that it is actually the second main library circulation for the whole of the county behind the one in San Andreas. So we're getting a huge amount of people that are using that. And we serve the community as a hub. We always have people that are dropping in that are homeless, that are lonely, that need to talk to somebody. It is very much a community centre. And close it for 1 day, sends a huge message. If nothing else, it says that you're not important that we don't consider your health. And your wellness, and that this is something that could have repercussions in other areas of your budget. I, we serve the seniors.

Thank you ma'am appreciate that. And that will be well, her. Ms. Gonzalez.

Good morning Board. I haven't been here in a while and I missed every single one of you. Hi Martin, my friend. But anyway, I'm here to just say some positivity. Some people still live in their basement at home and On the keys, I don't. I belong to Toys for Tots. I'm a director for Toys for Tots now in the region. I go to Sacramento. I volunteer for the food bank up there. I do things that are good for our community that bring people back here because we need the TOT. I get what your job is. Amazing what you guys are doing. But these men right here, they fight for us. And I just want to say that, I know it's on the agenda, so I won't say anything else. But I'm also doing a fundraiser for the Byrne families that have lost everything. I'm doing a charity concert. It's free. We're only accepting donations. I have three bands, the Penetrators Groove Band, Hired Gun, and the Rusty Rockers from West Point. They're all coming to do a free concert for us to help us raise money to help the victims of the fire. We're at when that's going to be a copper town square. They've also donated the facility, the outside area and this could be on September 20th and it's gonna be from 1 to 6 PM. All the restaurants going to give deals because we're. You know, we're trying to do the best for the people that have been victims of this fire. I have been blessed and lucky and I help those that weren't and it's just heartbreaking and your decision that you guys do. Everybody needs to sit in that chair. and understand what they are going through it isn't easy but we need to work together and come together as a county calavera strong thank you gina i i would like to introduce diane severud former clerk to the board hello

A little weird being on the side of the podium, I got to say.

It's very good to see you. Thank you.

Thank you. So good morning. I wanted to talk to you today in one of my new roles, and that is as the community coordinator for the Murphy Senior Center. We are doing a one day conference. It's our first annual called Longevity and Lifestyle. It's about living better, using the tools and the resources we have available to us to make our brains stronger and our bodies stronger and just to live a full life. The conference will be from 8 a.m. until 3 p.m. on Thursday, October 15th, and it'll be at Ironstone Vineyards. The cost to attend is $15. That includes breakfast and lunch for the day. And we will have several speakers, one of which is from the Alzheimer's Association. Another is from UC Davis, who will talk about the way our medications interact And then we will also have someone from the California Department of Financial Protection and Innovation who will talk about how to protect ourselves from scams and online predators. Our keynote speaker is coming from Queensland, Australia. She is a renowned neuroscientist who will be talking about the way that we can make our brains stronger every day. So we're very excited about this day. We're also going to have many resource tables available that will provide information and materials to not only seniors in our area, but to people who have seniors in their lives. So we're hoping that caregivers, family members, seniors, people who work with seniors, anybody is welcome. So if there is something that will be a deterrent for attending, such as cost, please contact our senior center and leave a message for Kathy. Her number is 209-728-1672. Thank you.

Thank you, Diana. Miss Terry McBride.

Good morning. As a survivor of butte fire, I understand the loss of our neighbors down in the Valley Springs area. We went through it ourselves. We're here for you. And I got to wonder why the hell are you pulling the money from the fire department? so let me you see this book here everybody you should get this book it's called the doctrine of the lesser magistrate this book gives you the power the knowledge within it to stand up to the state of california and tell the pound sand your citizens make more difference to you than an unelected hear me right a selected not an elected governor most of the people in the senate and the assembly are selected why is it mostly democrats why do they say it's okay for an adult to have sex with a child as long as there's only a 10-year difference isn't there a problem with that do you agree with that no i find it disgusting that is what happens when you have a communistic regime running this great state and that's what we have right now that's why we're going to go back to one day voting id required paper ballots and people counting the votes. Our folks working in the voting office here do a great job, but they don't run the computers and they don't make the answers come out of the computers. The computers run the computers and they select the people that are sitting in the state and local offices. And we need to think about that. Are you going to stand up against it? You have the power as an elected official that anything that is unconstitutional, you can say, hell no. You have that right, you have that power, and you have the majority, not everybody here because not everyone get it. The majority of the citizens of this county would stand behind you and back you up. New California will. Will you stand up for the Constitution of the United States of America? Will you stand up for the original Constitution of California, 1849? That was completely a cert. 30 years later, that became a, are you ready, corporate document. I've mentioned that a few times here. So you're being ran by a corporation. You're not being ran by elected officials. You are being ran and told what to do, that they can change it any little, whatever they want. That's what you're being ran by. Are you going to stand up to it? Are you going to be U.S. citizens that remember who fought and died for this country, not only 250 years ago, but in all the wars? Are you going to stand up for the U.S. Constitution so our children, you all got them, our grandchildren, more than a few of us in here have, I even got a couple of great I want them to have a better country than we have. And the only way that happens is the local magistrates, please read this book, please get this book, and stand your ground for your communities. Thank you so much. God bless.

Amen.

Further public comment?

I do have someone online that needs their head raised. A couple of people. So just a reminder to the public, this is for general public comment, not for items that are on the consent or the regular agenda. So, Fran, go ahead, please.

You may need to unmute.

You'll need to unmute yourself. Okay, we do have a second person that has their hand raised, Martha.

Hi, good morning.

Martha, just a reminder, this is for items that are not on the consent or regular agenda, okay? I understand, yes. Thank you so much.

Good morning, everybody. I just wanted to say a little bit about our libraries. I know Angela talked about it, but, you know, I am from Arnold, and so our Arnold Library is going to be closed on Thursdays starting on the 17th, and I'm hoping that There might be some way that you can reconfigure the budget and find a way to keep our library open because it not only serves as a library, but it's a community hub. We are a cooling and warming station. Our community members come and spend the day, some of them, in the library using our computers or just sitting and reading. So I hope that You can consider that when you are getting your funds together, and we hope that the library will be able to stay open for our five days, not four. Thank you so much.

Thank you for your time. Can we maybe get the other person up now? Fran?

yes i'm so it's technical difficulties thank you you're welcome go ahead um you know i've never commented in a meeting before and i just realized my topic is about agenda item 17 the data center so will i be able to comment later on this absolutely yes okay thank you so much you're welcome okay there's no further public online pop cop all right and i'll let you open consent agenda

Consent agenda items are expected to be routine and non-controversial. They will be acted upon by the board at one time without discussion. Any board member, staff member, or interested party may request the removal of an item from the consent agenda for later discussion.

Are there any board members that would like to pull a consent agenda item? I'd like to pull item number 11. Item number 11 by Mr. Topnelli. Any further by the board?

All right, anybody, staff like to pull any agenda items? Public, would public like to pull?

Ms. Colleen?

Yes, item 13.

13, 11 and 13. All right. Is that, will that be all? Okay, i'll bring it back to the board for the remainder. Oh, we have a motion by Supervisor Hubbardy, a second by Supervisor Follendorf. All those in favor. I any opposed passes on a 50 vote of the board. We'll go to item number 11, Mr. Topnelly after the Stacey does her little jig.

Item 11 really resolution public works 1, find exempt from sequel and to adopt the resolution approving traffic order number 333, extending the 1 way traffic pattern on California street from its current northerly terminus to Pope street in San Andreas.

Michael Martin public works director this item is to request the approval of a traffic order to establish a one way configuration on California street or our. Hope street safe route to school project.

Yes, and I pulled this item because I'd like to have it brought back on a different date. We have a couple of issues we need to deal with first. So I don't know how long it's going to take. Hopefully it won't take that long and then we can bring it back maybe the next board meeting. But that's why I pulled it.

Okay.

Okay.

Uh, yeah, so it's not, I think supervisor tough now, if you want to make a motion to continue it to, uh, to take off today's agenda and move it to a future date.

Yeah, I'll make that motion, but I didn't know in public.

Yeah, I'll give the public opportunity for public comment on this item. If not, Micah, go ahead and stay up here.

I'd like to real quick. California Street, if our car goes past Santa Cruz, used to be two-way. They made it one-way. That's probably a good idea. And then you could turn to get down to Pope. There's a huge apartment complex up there. So those folks that want to go up to the apartment complex, you're just, how much more traffic are you going to have doing a big U-ey? when they don't need to. I mean, that needs to be taken in consideration also. Thank you.

Thank you, Ms. McBride. Micah.

Really quickly, Chair, I just wanted to check with the online.

Yes, absolutely.

Is there anyone online that wish to make a public comment on this item? Please raise your hand. We have no online public comment.

Thank you, Stacy.

With that, I'd like to move this item to be carried out on a further date, another date.

I'll second.

Okay, we have a motion by Mr. Toffanelli, a second by Supervisor Handel.

All those in favor? Aye. Those opposed? That passes on 5-0 of the board to be continued to a later date.

You okay, Micah? I'm good. All right. We're good then. Thank you. Okay. So we'll be able to move on to item 13, which includes you and Miss Stacy can read it off for me, please.

Item 13 action item public works authorized the director of public works to execute a cooperative agreement with the California Department of Transportation to transfer existing project funds for a CalTrans project that will improve the intersection of Olive Orchard Road Gardner Place at State Route 26. um Colleen you pulled this item

And I'll go ahead and let public comment follow you after you ask your questions.

Okay.

I was hoping Micah would summarize it, but.

Oh, okay. Yeah, here I'll let Micah summarize it. No, no, my apologies.

Hello Board, Michael Martin. This item is a request to enter into a cooperative agreement with Caltrans for the intersection improvements that are needed for State Route 26, Olive Orchard and Garner Way. As you're aware, there's been a lot of ongoing issues there with regards to safety. The county has taken the effort to do some preliminary work on some studies. and give Caltrans the information they need to agree to injure into disagreement with us to do some safety improvements and a longer term project to improve the intersection. So we're committing some of our funding that has been made available through our budget to put towards this effort and continue to work down the path with Caltrans to hopefully get some more permanent solution in place.

Thank you, Michael.

Thanks, ma'am.

No problem.

Yeah, I had just basically a couple of questions that I support moving forward on this project. Absolutely. We've been needing this for 20 years, 30 years, something like that.

Still on the board for that long.

It's been in Valley Springs Benefit Basin as a project as long as that's been in existence. So any movement forward would be wonderful. That was part of 1 of my questions is that I understand the long range planning that is now going to be working with Caltrans and the county on a permanent solution. But the staff submittal here also mentioned. Uh, focus near term safety. Steps, but they didn't go into any detail about what that would be. It did say that studies have been done. um and uh department of public works requested caltrans conduct safety analysis to identify a focused near-term safety project but that's not what this funding is for this is for the long-term funding project from what i understand and i didn't know what the near-term project Would be, you know, whether that would be caution or black and yellow or something like that. So that's my 1st question. What is the new. The nearest soonest thing that we could do that. Right. And then the 2nd question was, these funds are coming from the valley Springs benefit patient and I was wondering how much is there. I haven't seen. Not done that.

Um. Would you like to ask some questions also and then we can have. Okay, go ahead and make the comment and then we'll, we'll get all the comments and I'll have Michael follow up and answer your questions.

So, hi, I'm, of course, so from. I actually wanted to thank you guys. For considering cooperating with this has been a really dangerous intersection and although I'm concerned. There should be enough accident data available to us now to proceed with something quickly rather than some long term study when we have data. Accidents on that intersection, so these improvements should have been done a long time ago. and um we know that they were kind of the contractor was led off the hook for the olive orchards estates and um it continues to be a really dangerous intersection so thank you for looking at it and i'm just urging you to do something sooner rather than later thank you rebecca thank you micah we actually have online yes absolutely sorry my god i apologize not seeing them they're on right now they're on my board sorry

Fran, go ahead. Yes, thank you. And I'm also very happy this topic is being brought up because there are a lot of accidents or near accidents on that intersection that a lot of us see all the time. And I'm also curious to know what the proposal would be, a four-way stop sign or what it would be. Thank you, that's all. Thank you, Fran.

You got that, Micah? I got it. Is there any further online?

We have no further online public comment.

Thank you Stacey.

Okay, to answer some of the questions. Yes, there are some near term solutions that are being looked at. I couldn't go into much detail on that because we don't know exactly what they are yet. Caltrans is committed to look at any preliminary improvements that can be done to make the intersections safer while they continue to develop a design for more of a longer term goal. So I know recently they have added some signage, improved some signage to try to make people more aware. They're continuing to look at other options. They update me as they come up with other things. As I become aware of those, I can certainly share those with the board. But that's why I wasn't able to go into much detail because we're not exactly sure yet what those other options might be. For the long-term solution, a four-way stop, a roundabout, left-turn pockets, all those options are on the table, and that's what Foutrans will be reviewing moving forward. That's part of what this cooperative agreement allows them to do. They will be able to look at different options and propose to us the best solutions and recommendations to how to make that intersection more safe. So as that information comes forward, we will bring that forward as well. And then I think there was a question about the funding for the benefit basin. We have $371,000 budgeted. For that, we'll be using $345,000 of that money to fund this effort. Well, hopefully that addresses any other questions or comments.

Is there any more questions? I just have a comment. Again, I want everybody to remind everybody this is Caltrans. We have no control over Caltrans. I've been on Caltrans for a year about the light at Marville Shopping Center and then they went to blinking red lights plus the four-way stop sign. Anybody that deals with that in the afternoon or in the morning, Um, we have no control my vast them and ask them to ask them. Um, and so how far how long this is going to take? We don't know. We have no control over them whatsoever. They're Caltrans. So, just to put that aware, and then whatever they come up with and agree with their engineers. We may not even have anything to say on that, whether it's a four-way stop, round, whatever happens. It's Caltrans. They're very difficult to even deal with when it comes to what they want to do. Just want to remind everybody of that. Just the blinking red light at Farville should give you a little bit of an idea. So thank you.

Oh, I couldn't agree with Mr. Toffin anymore. I mean, but I am appreciative. This is it's been a long time coming. You know it's been a roller coaster since long before you've been here micah and you're you're actually starting to carry the ball across the line get towards the goal. And once we get to this point, we sign these type of cooperative agreements things seem to be moving forward better, hopefully.

it's a saw with Caltrans that we can all feel that is palatable.

As we know, sometimes it's not. But now you've been keeping your eyes on where Caltrans is going and you're getting a good feel for how the county is situated. So I trust that you'll carry it farther.

So with that, if there's no other comments by any board members, I'll consider a motion. I'll move this item. Motion by Mr. Toffanelli.

Second.

Second by Ms. Handel. All those in favor? Aye. Martin? I didn't hear that. Sorry. I certainly hope so. Passes on a 5-0 vote of the board. Good questions, Colleen. I really appreciate them.

And Roberta, thank you.

So before we go to the regular agenda, I'm going to give a 10 minute break because we got a long, long, long day for staff.

And so everyone can use the facilities or anything real quick beforehand and get situated before we move on to the agenda items.

Thank you everyone all right we'll move on to let's see I wrote this down just so we'll move on to 19. on the regular agenda

Item 19, Resolution Sheriff, adopt a resolution ratifying the proclamation by the Sheriff Rochelle Whiting, Calaveras County Director of Emergency Services of a local state of emergency beginning on August 3rd, 2026 due to the Gann Fire.

Sheriff Whiting.

Good morning, everyone. I'm Sheriff Rochelle Whiting, acting as Director of Emergency Services for Calaveras County. As of this morning, the GAN fire is currently estimated at 10,339 acres and 90% contained. The GAN fire ignited on August 3rd, just before 530 PM. As with the start of any wildland fire in our operational area, Calaveras Sheriff Deputies immediately responded to coordinate with Fire Incident Command and assess the need for evacuations. Our Office of Emergency Services staff started monitoring the evolving fire and responded to the EOC. Our Emergency Operations Center remained open from Monday all the way through last night. Our OES staff coordinated cooperators meetings with local officials that occurred twice a day throughout the entire incident with emergency management activities between those meetings throughout each day and night. By Monday night, the same day that the fire started, CAL FIRE informed us that they were activating the Type 3 Incident Management Team to handle the fire. We integrated with that team in command of operations. Deputy Chief from CAL FIRE TCU, Kevin Bohal, is here and he's going to speak after me. He was actually incident commander of that Type 3 team. And we're extremely lucky and grateful because Kevin's very proficient, efficient, and a local, so he knows us all. Tuesday, we knew that CAL FIRE's Type 1 Incident Management Team 6 was activated and inbound to Calaveras. On Tuesday, the fire activity intensified near more populated areas we saw spreading on both the south and the north flanks and into the Circle 20 subdivision. Fire Incident Command reported possible loss of structures occurring in Circle 20. Around 2 PM, Tuesday, August 4th, this is just the 2nd day of the fire. I signed the declaration proclaiming existence of a local emergency due to the Gann fire due to the mandatory evacuations that were expanding potential loss of structures and growing fire activity. Extreme peril to the safety of persons and property has had arisen in Calvert's county. The fire caused a multitude of effects. which threaten the health and safety of residents and stretch beyond the immediate capabilities of local resources, services, personnel, equipment, and facilities. There was lots of mutual aid already pouring into our county at that point. Just to answer some questions as to why, as the Director of Emergency Services, did I do this declaration? Not only was this to notify the governor of our situation and ask for additional resources, but this act unlocks extraordinary legal powers, waives some standard bureaucratic rules, and opens the door to vital state and federal disaster assistance. If it was determined necessary by doing this local proclamation, if we had to have enforced curfews, restricted travel, do more mandatory evacuations, bypass standard public contracting bidding and hiring procedures to rush purchases and repairs, or enact any anti-price gouging laws, etc. There's a lot of powers that come when we do the declaration for the state of emergency, which is why I did so. when there is a local state of emergency declared it also makes it where our residents that were all affected and they may have had to evacuate hastily and were unable to bring their prescriptions with them when we declare a local state of emergency allows them to be able to get refills and it weighs some of the things to make that half faster at our local pharmacies An FMag was issued for the Gann Fire. This is a fire management assistance grant provided by FEMA that offers federal funding and resources to state, local, and tribal governments to help mitigate, manage, and control wildfires. This enabled cost sharing and reimbursement mechanisms for eligible expenses in response to the Gann Fire. On August 6, Governor Gavin Newsom signed the proclamation affirming the state of emergency in Calaveras County and enabling the state of California to further support local response efforts, protect public health, and coordinate resources as firefighters continued to work on the Gantt fire. At this point representatives, both on the emergency management side, as well as the law enforcement mutual aid side had already been operating remotely within our sheriff's office emergency operation center along with a lot of other local officials, cal fire representatives for public messaging throughout the incident. Our Sheriff's PIO worked in close coordination with the CAL FIRE Incident Management Team and our local Tuolumne Calaveras CAL FIRE Unit to ensure that we were pushing out coordinated, unified messages to the public. Some statistics. From the onset of the incident through Tuesday, we averaged about 37 law enforcement personnel per 24-hour operational period. That's including personnel from our local and state partners. At the peak of the incident, we had about 68 law enforcement personnel assigned within the fire zones. That peak occurred on Wednesday, August 5th. Throughout the entire incident, roughly 334 law enforcement personnel have been assisting our county with operational needs. Fire suppression operations also peaked on Thursday, August 6, with approximately 3,158 firefighters assigned to the incident, including local agencies and outside departments. Throughout the incident, fire suppression operations averaged about 1,944 firefighters per 24 hour operational period. That level of staffing reflects the tremendous regional response and the cooperation we received from agencies throughout the state. From a law enforcement standpoint, our priorities have remained public safety, access control, protection of evacuated and affected areas, and coordination with fire personnel and our mutual aid partners. Even with the significant resources we committed to the Gann Fire, there has been no disruption to our ability to provide normal law enforcement services throughout Calaveras County. Routine patrols, calls for service, and other core public safety responsibilities have continued without interruption. I am also keeping deputies assigned to the affected fire areas until further notice. Although we were able to happily lift the last of the evacuated zones and the last of the traffic control points, we are not removing the extra patrols that are occurring in those areas. As residents begin returning to assess damage, recover belongings, and determine what they may be able to salvage, we understand how difficult and emotional this process can be. Maintaining a law enforcement presence provides an added measure of security and reassurance for those residents as they return to their properties and helps discourage unauthorized access to the affected areas. I'm happy to say that we have had no reports requiring law enforcement intervention within the fire zones during this incident. Our personnel have remained focused on supporting the overall response and protecting the community. As we transition from active suppression into recovery and cleanup, our focus is shifting toward safe re-entry property access damage assessment traffic and roadway management and continued coordination with our county and partner agencies at this time our operational needs are being met and we have no additional law enforcement resource requests For the Gann incident, I activated provisions of our county emergency operations plan, recalled all personnel, canceled days off, and my staff has been on mandatory 12-hour shifts throughout the duration of the incident. Other than the obvious immense gratitude for our firefighters, I'm already working on thank you letters for our law enforcement mutual aid partners and cooperating agencies that continue to be essential in management of the Gann Fire. This includes, and I'm sure that I will be adding to more department names as we are reviewing it, but I'd like to go through the list of agencies that assisted in Calaveras County for the Gann Fire. And a huge thank you to our Calaveras probation officers who assisted us from day one and throughout the incident for law enforcement mutual aid evacuations. Calaveras Probation, Angels Camp Police Department, Alpine County Sheriff's Office, Amador County Sheriff's Office, California Department of Fish and Wildlife, California Highway Patrol, Davis Police Department, El Dorado County Sheriff's Office, Jackson Police Department, Manteca Police Department, Placer County Sheriff's Office, Rockland Police, Roseville Police, Sacramento County Sheriff's Office, San Joaquin County Sheriff's Office, Stanislaus County Sheriff's Office, Stockton Police, Sutter Creek Police, Tuolumne County Sheriff's Office, West Sacramento Police, Woodland PD and Yolo County Sheriff's Office. In addition to all of those law enforcement agencies that assisted with mutual aid through the Lima request that we made through state Cal OES, I do want to emphasize the amount of cooperators on the emergency management side of things. I'm going to go through this list and hopefully I don't miss any. All of the cooperators, there's a lot to managing, of course, a fire incident to this scale other than just the suppression efforts. So a lot of these agencies were active participants in our cooperator calls, assisted with evacuation, sheltering, meeting all the needs of our community, and then moving into recovery efforts. The American Red Cross, PG&E, Cal Fire, Cal OES, Calaveras Auditor, the Calaveras District Attorney, Calaveras County Council, Calaveras Health and Human Services, Calaveras County Administration, the Calaveras Airport, Probation, Calaveras Building Department, Calaveras Assessor's Office, Calaveras Environmental Management Agency, Calaveras Technology Services, including their GIS department. Calaveras County Animal Services, Calaveras County Fair CEO, Calaveras Public Works, Calaveras Behavioral Health, Calaveras Search and Rescue, the Calaveras Office of Education, American Legion Ambulance, Hogan Lake Army Corps of Engineers, Calaveras County Water District, NOAA and their weather reports that we got from them at every single one of our cooperator calls and our county fire departments. Like I said, the list of cooperators is still growing as we are compiling, and that doesn't even mention all of the nonprofit and non-governmental agencies that fold under the umbrella of one of our emergency support function leads. And then last, politically, I would like to thank Several members of our elected officials that reach out, offered resources, was ensuring that everything we got we needed from the state and federal level. I know Valerie just left, but I asked her to thank the Senator Marie Alvarado Gil, Assemblyman David Tangijipa, Congressman Tom McClintock, the Governor Gavin Newsom, and of course the members of this Board of Supervisors who checked in. You guys were very communicative. And we appreciate you passing on the concerns of your constituents, making sure we're doing everything on point and making sure that we are following all topics. So of course, we are here today to ask the board to reaffirm and ratify the declaration. Before we move on, or I see if you guys have any questions for me, I'd like to bring up CAL FIRE Tuolumne Calaveras Deputy Chief Kevin Bohal to give you guys a report.

well hall all right well thank you uh uh i appreciate the introduction uh i appreciate the sheriff's comments and i appreciate the board letting me speak uh kevin bohall i'm the deputy chief here in tolme calaveras and i've been in this unit for about eight years i have 28 fire seasons um i'm a type one incident commander on a cal fire incident management team and i did end up being the instant commander uh the second day on this incident so some of the things that um we faced the the goal of this i'm going to say is success through collaboration is where i'm going so work with me on that The 1st thing, obviously, we got out there, we had fuels conditions past what we would normally have. We were in the top 3%. For days over a 20 year period. So think of that. That's all weather that we get over 20 years. We're in the highest 3% when it came to fuel conditions and weather conditions, which is obviously going to be conducive to fire growth. That's something that's going to happen if it gets in alignment with terrain. Obviously, you have a remote area. The Bear Mountain Range specifically is probably one of the more remote areas in Calaveras County due to the fact that it's unimproved. It's an area that has a lot of rangeland and historically hasn't have a lot of fire history. So once a fire got established there, there was a good opportunity for it to actually have some pretty decent fire growth. As you guys could all see from the adjoining areas, especially probably Valley Springs, Ion San Andreas, all those areas like that. When we made that aggressive attack, we did the best we could that first night, but understanding that those conditions didn't improve. We didn't get overnight humidity recovery. We didn't get the things that we normally get that would help us with fire other than firefighting resources. We ended up with plenty those we ended up with 3 000 people over the incident lots of aircraft and lots of collaboration among agencies obviously unified command with calaveras county sheriff's office and then we had support from all these other agencies that were helping us throughout the county local state and federal um jurisdictionally um the fire outside of the unified command with calaveras sheriff and cal fire jurisdictionally calaveras consolidated fire district and copperopolis fire district are also partially jurisdictionally responsible for the fire so they were part of the decision processes we went through and we dealt with things that occurred throughout the fire so As the fire grew throughout the days, we did work with local landowners, we worked with those local agencies, and we made the best suppression effort that we could that was going to mitigate the incident the quickest that we could without impacting values at risk that we didn't have to. And then obviously those values at risk, some of them were impacted, and there was some tragic loss in portions of the fire, but we tried to minimize that. and the reason that we have the success we have to this portion of the incident and obviously ultimate success is due to that collaboration and due to the support that we had from all these local agencies and then state and federal that came in to support this instance so and part of the the last collaborator i wanted to speak on is the public the public has been one of the greatest collaborators in this effort they've supported us through everything we've done and we couldn't have came to the success that we have on this instant without their help with that i'll close thank you

Although it's been publicly identified, of course, in dealing when there's a fatality in an incident like this, and friends and family have identified who the person is, and we extend our heartfelt condolences to her friends, family, neighbors. We will not be putting out an official identification for a little while. It's going to take some time, and we do have to go through the processes, and that we are working with the coroner's office on. I do want to touch on finances real quick. We are submitting the initial damage estimates to state OES today that came from the asking for the governor's pro and receiving the governor's proclamation. It's still being reviewed whether our county will get the CDAA, the disaster assistance that would trigger some more things for our community like the low rate loans and whatnot, but finances for right now our estimates Approximately $7.1 million estimated loss due to structures, 15 homes destroyed, 21 outbuildings ranging from minor to severe or destroyed. The Sheriff's Office alone, we are over $199,000 in overtime and fuel costs about $10,000 in supply and meal costs. Total governmental estimated loss is around $330,000. That's including about $115,000 in local fire department costs, equipment, overtime and administrative expenses that is not covered elsewhere. Our multi-county department finance team that we formed when we took OES, it's comprised of members from the sheriff's office, county administration, health and human services, and the auditor's office. They are already all hands on deck and they are compiling those costs as we speak. So of course, any numbers that I've given are all preliminary. And I open up the board if you have any questions for me.

Board members, any questions prior to public comment?

Mr. Tocanelli? OK. We'll reserve him a public comment, please. Ms. Gonzalez, twice in one day, we are blessed.

We just love you guys. We just do. We love these men, too. We love our Taylor. And we want to let you guys know that we stand behind all of you guys and what you did. I was in an evacuation. And I want to just let you know that, you know what, I just want to thank you. Thank you so much.

Would you like to make a public comment? Oh, you're more than welcome.

I just want to say the same thing. We are so appreciative and grateful.

I'm sorry, but just so for the purposes of the board, we know that you're appreciative of them.

Just hearing the sheriffs and all the agencies, and it's just heartwarming in these times to see the collaboration that we, no matter what, when it comes down to this, we're one. And that's all. It's kind of emotional to me. Thank you.

Thank you. Any further in the audience before I ask for online comment?

Ms. Simpson, online comment.

Just a reminder to those online, please raise your hand if you wish to make public comment.

Let's give them time for the delay.

We have no online public comment.

Excellent. Thank you. With that, I'll bring it back to the board and any questions or anything, or I'll receive a motion.

I just want to thank everybody that was involved in the sheriff's office and all of your officers that did a fantastic job providing safety and throughout and making sure evacuations and then protecting the properties once they were evacuated and everything you guys did. You were 24-7. I want to thank Cal Fire. for everything they did and all the firefighters that came in from all over, all the other districts that came in that was mentioned by the sheriff and our local fire district. It was a collaborative effort and it was recognized that this community comes together when something like this happens. It was fantastic and I'm glad to hear it's 90% and hopefully this time tomorrow will be 100%. I'm glad everybody's being able to go home. Some of them going home is going to try and go through everything to see what's left, if they can find some heirlooms that they lost maybe, because when you evacuate, you have a very short time and there's so many things that you, if your house burns down, you can lose, heirloom pictures, jewelry, what have you, that you have to go through the ashes now and see if there's anything left. So with that, I would like to make the motion.

thank you mr toffanelli i'll entertain a a second second on it and then uh i'll do a roll call vote so each person can speak their words as they vote if if we have a second to the motions what way are you going that way this way we we don't have we only have the motion so far i will second miss a second by miss sandal uh a motion by mr toffanelli roll call vote we'll start we'll start with uh martin district three

Thank you, uh, sheriff amazing, amazing work. Um, you are such an inspiration. Um, it's wonderful when we make decisions up here that work. And, uh, having always back with you is amazing. So I just wanted to thank you want to think how fire want to think all of our firefighters, all of the deputies that were out there working. Intense times and yay. Hey. Yeah, that's it.

District 2? With my aye vote, I will also say thank you to the Sheriff's Department, to CAL FIRE, to all the local districts, to all of our community, our nonprofit agencies that have stepped up and offered support. It was all very seamless. In the words of Chief Bohal, that collaboration was very impressive. Up in District 2, it was very reminiscent of the Butte fire and that upfront communication and forethought was very helpful to the residents knowing what to expect and what was happening in real time. Thank you all.

District 4? I echo what Martin said to the sheriff. The decisions we made, we really showed what OES is capable of doing. And I also want to personally thank Cole. He was listening to what the community needs and reaching out and helping facilitate those NGOs and community needs that were coming through. And I appreciate that responsiveness from OES. It was refreshing. And it shows what happens when that communication is seamless and we're able to get that collaboration going faster. And thank you to CAL FIRE and all of the local agencies locally and outside of the county that came in to support support us and it was great all around um but also just helping that we had to go through this again yeah district one hi hi hi um

Rochelle, Mrs. Sheriff Whiting, I mean, CAL FIRE, all the deputies, everyone top to bottom. I mean, there's no way I could spend the time to say all the names right now. The communication was phenomenal. I was able to not step in as an elected official and get in the way because I was being communicated to, so there wasn't a moment where I felt I had to, you know, try to show up somewhere and find out what was going on. You know, we made the right decision at this time with the leadership and it showed with how things happened here. So I really appreciate the work by everyone. And I mean, there's not enough to say. So with that, that's my eye. So it passes on a 5-0 vote of the board, right? That's what we got, right? Yeah, everyone's an eye. So with that, I just, again, applaud the work. The disaster is nothing good, but you know what? The good thing about this is the community coming together the way they had. So thank you all. Thank every one of you. All right, so with that, we'll move on to item 20. Miss clerk.

Item 20 informational item administrative office receive a presentation about fire district revenues and budgetary considerations county wide, including a summary of the boards January 2026 revenue workshop.

So, as while Ms. Huberter is setting up, I do want to make a few brief remarks regarding this item. Chair Stauffer, members of the board, and I really want to thank all of the public for being here for this item and caring about what happens in our community. As you all know, civic participation is a cornerstone for government. and i hope that everyone will listen to the upcoming presentation with an open mind and the understanding that we want to ensure that our public safety system as a whole is ready and able to take care of our residents when we have major disaster events like the gan fire that occurred over the past week thank you So I know this topic has brought out a lot of strong feelings and honestly some fear mongering that isn't helping anyone. My hope today is that this presentation clears up some of the misconceptions and encourages folks to take part in the budget hearings coming in September. That's the time when the public can really weigh in before decisions are finalized. Everyone sitting on the dais lives in Calaveras County. All of us deeply care about protecting the quality of life for every resident. And it's important to remember public safety isn't carried out by one single entity. It's a system. It works because all the parts work together. And with that, I'm going to turn this item over to Denise Huebner to make the presentation.

Excuse me.

Don't be sorry.

If you need a moment, let us know, Denise.

20 moments could be a break.

You guys can talk while she's doing that.

Just have a moment. My daughter's sick at home and my wife's going to pick her up. So I'm just going to give you a moment to. Yeah, 5 minute break would be phenomenal. That way we can get that straightened out also.

Okay, everyone.

We're going to start back up. Ms. Huebner is going to be doing a presentation, and then we'll move on to some specific comments to the item from the fire chiefs. And then we'll do public comment following that, and then we'll have a further discussion working from that. Thank you, Ms. Huebner.

Morning Board, Denise Huebner, Assistant CEO. Today's presentation is a result of the direction given at the July 28th Board of Supervisors meeting. This will be a fairly lengthy presentation in which we will cover a lot of information, and my hope is that we can provide clarity to a lot of misinformation that we have heard circulating, move forward in a constructive manner, and ensure that we're being as transparent as possible with the information presented. We will be walking through several different topics. I'll begin with a broad county budget overview, followed by a closer look at the general fund and how discretionary dollars are allocated to support essential services. I will also summarize the major points from the recent revenue workshop to highlight the trends and pressures influencing our planning. From there, we'll review the general fund budget reductions and steps taken to reduce the deficit. We'll also cover the fire districts and their financial condition. And next, I'll outline the board's recommended budget revisions from the June 9th and 10th board meeting, showing how those adjustments fit into a broader fiscal strategy. Finally, we'll close with key facts to provide a clear understanding of where we stand in the path moving forward. i'd like to start with a brief look at the county's budget process the forecasting methods we use and a review of the overall budget, this will help frame the discussion and give context for the decisions were evaluating. California counties develop their budgets in accordance with state law, primarily the County Budget Act. The County Budget Act allows counties to use either a two or a three-step process. Calaveras County follows the two-step process, meaning the board must approve the recommended budget by June 30th, and then hold public hearings and adopt the budget each year by October 2nd. Once the board adopts the budget, that's what becomes the county's official budget of record. The recommended budget process starts right after mid-year is complete. The budget was published on the county website on May 21st. The budget was presented to the board on June 9th and 10th and was approved on June 23rd. The approved budget gives the county a working budget for July through September until public hearings on September 8th and formal adoption of the county budget scheduled for September 22nd. Every year the county budget process follows the same timeline with budget going to board for review the first meeting in June and approval the last meeting in June. The first meeting is always a regular agenda item and the last meeting is consent as it's just formal approval of the changes that were directed at the prior meeting. The same is true for the September meeting dates. Additionally, all meeting videos are posted online for review and future reference. Financial forecasting generally follows two approaches. A conservative approach estimates revenues low and expenditures high, reducing the risk of a shortfall but making the budget harder to balance. An objective approach aligns estimates closely with actuals, which is easier to balance but carries more risk if revenues fall short. The recommended budget uses the conservative approach, which the county has historically relied on to minimize the chance of a budget shortfall. We're facing several key budget pressures this year. Many revenue streams are remaining flat, while inflation is driving up the cost of goods, services and construction costs. Utility costs and insurance premiums continue to rise. Our CalPERS unfunded liability adds ongoing pension pressure. Aging infrastructure adds further strain and additionally, we have to stay prepared for unexpected events, emergencies, regulatory changes or fiscal shifts that may arise throughout the year. As you can see, the county's total budget is currently running a $22.9 million deficit. Non-general fund operating units account for about $767,000, and the general fund is a $2.35 million deficit, but is also using $3.2 million in one-time funds to cover costs, with that included, makes the general fund deficit sitting at $5.5 million. Well, these numbers may look smaller than in some prior years, they don't tell the full story because many operating accounts are relying heavily on one time or restricted funding to maintain a balanced budget. And without that funding, they would have a significant higher deficits. This fact is reflected in the $19.8 million deficit in our special revenue funds, which highlights the structural challenges we're facing countywide. I want to start budget review with a snapshot of the overall budget as a whole. Total revenues for fiscal year 26-27 are projected at approximately $281 million, a modest increase of $1.3 million compared to the prior year budget. While overall growth is small, several revenue categories show notable shifts. Intergovernmental revenues move in different directions with state revenues increasing by 17.4. and general intergovernmental revenue declining by 19.2. This decrease isn't entirely a loss of funding. It's the result of a change in how these revenues are being recorded, primarily for the behavioral health building. Federal revenues also are declining by $5.2 million, reflecting reduced federal funding for the year. In contrast, miscellaneous revenues increased by $4.2 million, including $2.5 million in the Roads Department for Caltrans reimbursements. Operating transfers in rise by 5.3 million, largely driven by transfer from special revenue funds to support ongoing operations. Other financing sources decreased by 3.2 million, primarily due to adjustments in internal cost recovery in the Health and Human Services Agency. And finally, taxes increased by approximately $1.14 million, contributing positively in a small amount to the overall revenue picture. Taken together, the fiscal year 26-27 revenue outlook appears to have slight growth. However, the increase is skewed because more funds are being brought in from special revenue funds to support ongoing operations, while the contingency balances in those funds are showing corresponding reductions. Although the county is projected to receive $281 million in total revenue, only roughly $44 million of that is truly discretionary. The remaining revenue is restricted, tied to specific departments and purposes such as grants, reimbursements, program-specific funding, which means it can't be redirected for broader county needs. This distinction is extremely important because it shows how limited our flexible funding really is when we're trying to address countywide priorities and budget pressures. For fiscal year 26-27, total recommended expenditures are $405 million, representing a decrease of approximately $12.7 million compared to the prior year budget. This overall reduction is driven largely by decreases in one-time or variable cost categories. The most significant reduction occurs in capital assets, which is declining by 14.3 million, reflecting fewer planned one-time infrastructure projects. Appropriations for contingencies also decreased by 7.5 million, indicating a smaller reserve set aside for unforeseen needs, which highlights the use of reserve balances. Despite these reductions, several operational areas show growth. Operating transfers out increased by $5.3 million, which again reflects special revenue funds supporting ongoing program needs. Other charges went up by $5.3 million, mainly because of a change in how we process reimbursements, which is directly tied to the $3.8 million drop in interim fund transfers.

Ms. Huebner, if you could go back to that, because I think that's crucial in outlining the entire revenue versus capital assets being expenditure or one-time funds.

A lot of these structural deficit is revenue that has come in for capital assets in the past, so we're not showing a revenue in this, and we're making the expenditures to do such things as the DA is building.

the animal shelter and other things right now which is going toward towards well the just for clarification the district attorney building does not count against our general fund deficit as it's held in a special revenue fund and funded with the prior year rollover which would be considered one-time funds right yeah right but i think that if you look at both sides of the categories that as a debit as opposed to credit

We're showing part of this as one-time funds that come in in the past, so we're not showing the revenue this year. Yeah, absolutely. And that's where I would show as a debit as opposed to a credit or cost as opposed to a revenue. Right. Okay. I just want to make sure that that's a point that everyone understands.

And that's why I go through kind of this lengthy explanation of why you see large shifts. It's not necessarily a large add to a revenue if it's subtracting from a different revenue source because it was just moved in a line item in a budget. It's not an actual true growth of revenue. Exactly. Yeah.

Thank you.

Uh-huh. Next, I'll give an overview of the County General Fund, which contains the majority of the county's discretionary dollars. The largest sources of revenue are taxes budgeted at 34.6 million, which is an increase of 1.1 million. This category comprises the majority of the county's discretionary revenue. Transfers in totaling 19.1 million, which is 1.9 million higher than last year, again, highlighting the use of one-timer restricted funds. It's important to note that while total revenue appears to increase by 1.2 million in the general fund, that we have included 3.2 million in one-time funds used to close the budget gap. When those one-time transfers are removed, ongoing general fund revenue actually decreased compared to the prior year. Total general fund expenditures are budgeted at 81.7 million. The largest categories of general fund expenditures are salaries and benefits at 48.9 million, making up 57% of total expenditures. This reflects an increase of 2.3 million over the prior year budget, driven by salary progression, improved employee retention, and an increase in unfunded liability costs. Services and supplies is the other major category at $25.7 million. That makes up 30% of total expenditures, which is a decrease of $380,000 from the prior year, reflecting the budget reductions despite inflationary pressures. Here we have the estimated figures for the 1% property tax split for the upcoming budget year. This chart illustrates how each portion of property tax dollars distributed among local entities. As you can see, the largest share goes to the school districts, which receive 55% of property tax revenue. There is also 12% allocated to ERAF, which is additional funding that helps support education. You'll see that 6% of property taxes, or just over $7 million, goes directly to the fire districts. And what may be surprising to some is that only 17% of property taxes collected flow into the county's general fund. This is the portion that supports the wide range of county services our community relies on. Secured property taxes continue to be one of the county's more stable revenue sources, showing steady and consistent growth in recent years. For fiscal year 25-26, we received $18 million. For fiscal year 26-27, projections will be updated based on that prior year figure and once the fiscal year closes. I anticipate bringing a higher property tax projection to September budget hearings.

Can I say something here? What she has up there is correct. We're supposed to get. 17% of the property taxes, but what happens when you write your check for your property taxes and you send it into our tax collector, all of that money, every bit of it. Goes to the state, we don't keep 17% and the rest of the state, all of it goes to the state and then the state gives us back supposed to be 17%. But in prior years, we didn't get 617% and then the state says, just deal with it. That's why we do our final budget later on in September after the state does their budget because they can take some of that 17% to balance their budget. And back in the years 2021-22, we had drastic reductions because of that. And I don't know what the state's going to do this year because they have some issues going forward with their budgets. But we won't know until they finalize theirs. So I just wanted to point that out.

OK, next, I'd like to walk through the breakdown of the 8.25% Calaveras County sales tax and highlight how those dollars are distributed across state and local agencies. The single biggest share of sales tax collected in Calaveras County, 48%, goes to the state general fund. The county general fund and the incorporated city together receive 12% of overall collections. This is the portion that directly supports local services and operations. And the sheriffs and district attorney offices are budgeted to receive the 6% related to the Prop 172 allocation. That funding supports public safety operations and related services. Prior districts received 12% of total collections. This comes from Measure A collections and is in addition to the property taxes shown on the last slide. Sales tax revenue tends to be more volatile than property tax revenue, and the trends we see usually reflect the overall health of the economy. For fiscal year 25-26, collections came in slightly over the 4.6 budgeted amount. Looking ahead to fiscal year 26-27, we're assuming a status quo level of revenue. As we expect, sales tax remain relatively flat, as it has in recent years. We do not anticipate recommending an adjustment in sales tax at budget hearings. For fiscal year 25-26 excise tax collections were just under 3 million. For fiscal year 26-27 the recommended budgets at 2.85 million. Based on board direction from the excise tax item today and review of collections, we may be recommending a small increase at September budget hearings. Prop 172 is the statewide public safety sales tax approved by voters in 1993. It dedicates a half cent sales of sales tax to support local public safety functions. Because it's tied directly to sales tax activity, Prop 172 revenue for the county has remained essentially flat in recent years. As sales tax levels hold steady, so does the funding from Prop 172, which means it's not a growing revenue source we can rely on to offset rising costs. While Prop 172 requires that funds be used for public safety, it does not obligate the county to provide those funds to any specific entity. Many county divisions fall within the public safety category and are also eligible for this funding. Transient occupancy taxes are the taxes charged to travelers when they rent accommodations such as hotels or vacation homes. In Calaveras County, TOT revenues have remained relatively flat since 2021, averaging 2.7 million per year. For fiscal year 25-26, the county collected 2.74 million, marginally exceeding the budgeted amount of 2.65. The fiscal year 26-27 budgeted figure will likely be updated with September adjustments based on historical actuals. Measure G is the local tax measure that went to approve voters or was approved by voters and its revenue deposited directly into the general fund for unrestricted use. This slide includes both the ballot question and the impartial analysis that were provided to voters, which clearly outlined that Measure G funds are not earmarked for a specific purpose, but instead support the general fund broadly. While it remains a steady source of revenue, its growth is limited and it stays relatively flat year over year. While the sitting board at the time chose to dedicate a portion of Measure G revenue to fire, that was a board decision rather than an obligation. With all non-restricted funds countywide, the revenue is reallocated every year and is not guaranteed to any specific department, community organization, or venture. Each year, all appropriations require board approval after taking many factors into consideration including the county's fiscal health and requirements to maintain service levels. As we move into the discussion of general fund discretionary dollars, it's important to recognize just how limited this portion of our budget truly is. These are the funds that the board can broadly allocate, but they represent only a small fraction of the overall county budget. Most revenues the county receive are already tied to specific programs or mandated services. or restricted for a specific use which leaves very little flexibility for addressing emergent needs supporting departments under pressure responding to inflationary costs in this section we'll walk through what makes up our discretionary funding how constrained it is and why it continues to be one of the biggest hurdles in balancing the county budget All discretionary revenue growth is shown here. The three sources of fully or mostly discretionary revenue are general revenues, which is the account where most taxes are deposited, Prop 172 public safety, and transient occupancy taxes. The average combined growth from fiscal year 22 through 25 is 4.82%, and that is with a high outlier in 2022 of 11.19%. Fiscal year 25 growth is currently sitting at only 1.74% growth, but the fiscal year 2526 books are not closed until mid August. This is a very small increase in revenue and it's not sufficient to cover inflationary pressures or rising personnel and other fixed costs such as insurance. All general fund revenue gets evaluated and revised based on how the prior year closes and other known factors. I do anticipate recommending a small adjustment to property taxes and a minor increase to TOT at budget hearings in September. So the projection for fiscal year 26 will likely go up based on prior year actuals. Additionally, the increase in property tax collections is a direct reflection of the hard work and coordinated efforts between the assessor's office, the auditor's office, and the tax controller's office to catch up and collect on the backlog in recent years, which further supports the board's rationale for unfreezing a praiser position. Our general fund spending is driven primarily by two major categories, salaries and benefits account for 57% of all general fund expenditures and services and supplies at 30% of costs. Together, these two categories make up 87% of our total general fund spending. Over fiscal years 21 through 25, these two areas grew at an average combined rate of 6.44%. That growth is outpacing the rate at which our revenues are increasing, which is why balancing the budget continues to be such a challenge. Ultimately, our options come down to two paths. We either need to find ways to increase revenue or identify areas where we can reduce expenditures. The general funds projected ending fund equity as of June 30th is just under $4.2 million. This estimate is based on a very conservative approach and rollover balance generally comes in stronger than anticipated, but the final figure is unknown until after the fiscal year ends and the books close. However, rollover balance should be considered one-time funding as it's often the result of vacancy savings or costs not realized in the fiscal year they were initially budgeted, not a true reduction of one-time costs. As currently budgeted of the 4.2 million in rollover fund balance, 1.8 is rebudgeted into general fund contingencies, and 2.35 million is used to fund a portion of the general fund deficit. Currently, general fund contingencies are set at 1.8 million, which is the board policy level of 2% of the average general fund expenditures over the prior three years, and the general fund reserve is is set at 8% of the prior three years general fund revenue. General fund contingencies account is held in our 1010 account, which is the general fund operating account, and general fund reserve is held in fund 1011. Both contingencies and reserves will be updated in September after the books close and a new reference year is available for calculation. Today, I want to take a few minutes to clarify the purpose of the county capital fund, how money moves in and out of it, and why it cannot simply be used to solve the general fund deficit. There's a common misconception that because this fund has a balance, we should avoid making reductions in the general fund. The reality is much more complicated, and understanding the structure of this fund helps explain why. The county capital fund is the budget unit that receives general fund discretionary rollover dollars at the end of each fiscal year. A few years ago when departments budgets were more inflated, we routinely had higher rollover amounts that created a healthy fund balance. However, about three years ago when the county made a concerted effort to reduce the structural deficit, budgets became more realistic. We didn't initially take true reductions, but we did remove excess budget capacity. The benefit was a more accurate financial picture. The trade-off is that rollover amounts are now smaller, which means the capital fund no longer grows the way it once did. As of the close of the current fiscal year, we estimate the county capital fund balance will be just under $15.7 million. Looking ahead to the next year, the only new deposit currently budgeted is $500,000 from Integrated Waste Management, which is the board-approved loan repayment for the Rock Creek Phase 3 project. Beyond that, there are no additional revenue sources planned for the upcoming year. If the general fund rollover ends up higher than expected, that could change during the September budget adjustments. But once again, if it is adjusted, those costs are one-time savings that should be used on one-time costs. Now let's talk about these funds, how these funds are used in county capital. County capital dollars support several major categories. Board approved capital infrastructure projects, Such as the district attorney and the animal shelter general fund capital assets, but the largest recurring cost me in the sheriff's office vehicles and outfitting. Critical building maintenance and it infrastructure projects which keep county operations safe functional and secure. And a transfer to the general fund to support balancing that's part of that 3.2 one time funds that I discussed earlier and a deposit to prepare for the additional payroll and fiscal year 2728 estimated at $2.25 million. As you can see, this fund is not just used for constructing new buildings. It's the county's primary source for ongoing capital asset replacement and maintenance of existing facilities and technology. These two categories alone require two to three million dollars every single year. At the current rate of deposits and spending, we estimate this fund can only sustain these obligations for an additional two to three more years. After that, if the fund is depleted, those same costs become a general fund obligation, which would add to the deficit that same two to three million every single year. admin is often asked why we don't just simply pull all available dollars into the journal fund to help cash flow operations on the surface that sounds like a simple solution. But using large amounts of one time money to cover ongoing expenses is widely recognized as poor fiscal practice once the money is gone the county faces an even larger correction because costs continue to rise over time. Additionally, there's another issue that would arise from that practice deferred maintenance when we postpone building repairs or delay replacing critical assets, the long term cost to the county increases significantly small problems become big ones which can become emergencies. For all those reasons, the county capital fund should not be viewed as a simple fix for the general fund deficit. It plays a crucial role in maintaining our infrastructure, our technology, our ability to operate safely and effectively, and protecting this fund ensures we avoid even greater financial challenges in the future. While the General Fund Reserve is the official place that the Board's policy level reserves are held, and again, that's Fund 1011, there are also several other designated funds that contain discretionary dollars set aside for specific purposes. The table shown here summarizes all of those funds. The amounts reflected represent the balances after all budgeted expenditures have been taken into account. Below that, the second table shows committed funds. These dollars are not budgeted for use in the current year's budget, but they are already committed for specific purposes. To put this into perspective, our general fund expenditures total $79.9 million. With $13.36 million in available fund equity, that gives us an operating reserve of 16.72%. The Government Finance Officers Association, who is widely considered the gold standard for public sector financial management, recommends that agencies maintain a minimum reserve equal to 2% or 3%, months of operating costs, which happens to also equal about 16.7%. Calaveras County is sitting right at that threshold for the general fund. That means even a slight shift in the wrong direction puts the county at risk. In addition, any non-general fund program lacking adequate reserves can quickly become a general fund liability. With $304 million in countywide expenditures, that is a significant concern, especially because in recent years we have seen several departments that should be fully fee-funded require general fund support. During the fiscal year 25-26 budget process, the Board of Supervisors directed administration to conduct a comprehensive review of all county operations focusing on identifying general fund cost reduction opportunities and strategies to maximize revenue. To support that effort, a public board meeting was held on January 13th and 14th, structured as a two-day revenue and strategic planning workshop. The meeting covered a wide range of topics, including an overview of countywide funds and trends, major revenue sources, updates on strategic planning, and a detailed look at department-specific revenue, fund types, and fund equity. The workshop made clear that the county had been operating with a general fund deficit and that just over half of the general fund revenue is discretionary, which limits the county's ability to respond to emerging needs. It also underscored that most special revenue funds come with highly restrictive uses, which significantly constrains how those dollars can be applied. At the same time, the review showed that some special revenue funds actually allow broader use than currently practiced, presenting opportunities to better align spending with eligible purposes. Board policy consistent with GASB statement number 54 requires that the county apply expenditures to the most restrictive funds when allowable. The discussion also highlighted that special districts receive services from the general fund departments without reimbursing those costs, placing an additional financial pressure on the general fund and an estimated $1.3 million. For anyone seeking further detail, the full slide deck from the January 13 to 14 meeting is available online as part of that agenda packet. General fund budget reductions. When we received all general fund budget requests, the general fund was showing a $12.6 million structural deficit. After working closely with departments, holding services and supplies to status quo and correcting some errors, the deficit was reduced to $8.7 million. Edmund then identified Just under 3.2 million recommended reductions through vacancy savings, overtime and extra hire reductions, department closures and scale downs, expense reductions, position freezes, and layoffs. This brought the deficit to $5.5 million. To close the remaining gap, we recommended the use of one-time funds of just under 3.2 million, which further brought the current year deficit to 2.35. At the June 9 through 10 board meeting the board directed changes those changes had no impact to the structural deficit is the expense and revenue changes offset one another. But the changes did reinstate some of the previous reductions which i'll go through later in this presentation. I want to emphasize that using those one time funds buys us time to look for long term saving measures and potential revenue options, but it isn't a sustainable long term solution. as once those funds are gone, the gap remains. These challenges won't be limited to this fiscal year, so we need to continue pursuing practical and creative strategies to reduce future budget shortfalls. With that being said, when looking at the big picture, we need to consider that $5.5 million is the actual deficit because without the same one-time funds brought in this year, that is the starting place for next year's deficit prior to any cost inflation or salary growth that exceeds our revenue growth. The county's general fund supports a surprisingly wide variety of functions, many of which are not widely known or fully understood. While some services are more visible to the public, countless others operate behind the scenes to ensure the county can serve its residents effectively. From public safety to fiscal oversight, legal support, administration, and community services, the general fund touches nearly every part of county operations. Importantly, Many departments that are not traditionally viewed as public safety still play an essential role when disasters occur. Some examples of this are information technology keeps communication systems functioning and restores critical networks after outages. Health and Human Services does I'm sorry, sheltering operations, public works, clears roads, manages traffic control, supports evacuation routes and assist with infrastructure assessments. County Council provides legal guidance on emergency declarations of resource deployment. The building department does damage assessments. The auditor controller ensures disaster related expenses are accurately tracked for potential reimbursement. All these administrative departments also provide support for logistics, procurement, and public information. Every department plays a critical role, functioning like a cog in a much larger wheel. When one cog slows down or struggles or is missing entirely, the impact is felt across the entire organization. Our ability to deliver reliable, coordinated, and high-quality services, even during periods of crisis, depends on all departments working in harmony. Recognizing how broad these functions are and how interconnected they remain is essential to understanding the true value and complexity of the general fund. For the fiscal year 25-26 budget, so not the current year, we're sitting in the prior year, departments were held to a status quo level of funding, but because inflation increased costs, maintaining flat budgets meant departments experienced an effective reduction in their spending power. To close the overall gap and keep the budget balance, admin then requested a 10% reduction to the net general fund draw across all general fund departments. That collective reduction amounted to $3.24 million. In addition to those departmental cuts, several countywide measures were put in place to help balance the budget. Capital asset purchases were deferred, maintenance projects were postponed, a hiring freeze was implemented, a retirement incentive was offered to help reduce ongoing personnel costs. All of these actions together allowed the county to bring the budget deficit lower for fiscal year 25-26. Moving into fiscal year 26-27 budget preparation, county departments were once again asked to hold the line at a strict status quo budget. With inflation continuing to rise, this was once again an effective budget cut. Keeping budgets flat meant admin went through each line item carefully and required reductions even in areas that might seem minor at first glance. These small incremental adjustments were necessary to preserve the status quo level and ensure we could maintain core services without expanding overall general fund costs. When all general fund department budgets were first submitted, as mentioned before, we were sitting at 12.6 deficit. Admin then identified 3.2 million in additional reductions, including vacancy savings, overtime and extra hire costs, department scale downs, expense reductions, position freezes, and layoffs, bringing the deficit to that $5.5 million. In total, bringing departments to status quo and the outlined reductions in the following pages reduced the deficit by just over $7 million. Because of ongoing fiscal constraints and the fact that personnel costs make up 57% of our operating budget, the fiscal year 26-27 budget includes several position changes designed to reduce the financial shortfall and slow the growth of staffing costs. As shown in the table, these adjustments include 10 position deletions, one change in FTE, four layoffs tied to additional position eliminations. While these reductions are necessary to stabilize the general fund, they do have real impacts on services. Fewer positions mean fewer staff available to support day-to-day operations, respond to public needs, and maintain service levels across departments. Even small reductions can create delays, limit program capacity, and strain remaining staff. This table provides a summary of the personal impacts and the full list of department reductions, including these changes just shown on the following slides. The first two pages of reductions focus entirely on non-public safety departments. Taken together, these reductions total just under $1.38 million and impact a wide cross-section of county operations. The adjustments span over admin facilities, information technology, human resources, disaster preparedness, Calaveras Community Media, the Assessor, the Auditor, County Council, Archives, Clerk Reporter, Agriculture, Animal Services, the Library, Econ Development, and Planning. Across these departments, the reductions included position deletions, layoffs, freezes, restructuring, a variety of targeted expense cuts, and some budget units are completely zeroed out, others lose extra hire resources, and several positions are eliminated or reduced. This page is a continuation of the non public safety reductions and again demonstrate how broadly our fiscal constraints reach across the organization. Each of these changes carries a real effect on service delivery eliminating positions reduces capacity restructuring department shift works load and cutting extra hire or overtime reduces flexibility, especially during periods of peak demand or unexpected operational needs. reductions shown here are reflect additional general fund cuts within public safety departments totaling just under 1.9 million dollars these impacts span code compliance the district attorney's office probation and multiple divisions within the sheriff's office including patrol dispatch the jail the corner and marine safety many of these adjustments involved freezing critical positions, eliminated rules, reducing overtime, delaying vehicle replacements that support frontline work. In public safety, these kinds of reductions have direct and immediate consequences. Fewer investigators and prosecutors show slow case processing, eliminating probation and administrative support reduces supervision capacity and delays court-related work. Vehicle cuts in the sheriff's office limit field mobility during emergencies, patrol response, and other operations. Reducing overtime and holding positions vacant also affects staffing levels needed to maintain safe jail operations, reliable dispatch coverage, and consistent patrol presence. Overall, these reductions illustrate the difficult balance between closing the general fund gap and maintaining essential public safety needs. They highlight that fiscal strain does not only affect internal operations, it reaches directly into the services residents depend on most. In total, the recommended general fund reductions amounted to approximately $3.27 million. This includes the cuts across both non-public safety and public safety departments. Reflecting the broad reach of the county's fiscal challenges, together, these reductions represent difficult but necessary steps to begin closing the structural deficit. However, they also come with significant service impacts. Reducing staffing levels, slowing core operations, limiting program capacity, and constraining the ability of departments to respond to community needs.

Ms. Huebner?

Yeah.

This is for year 25-26?

This is 26-27. 26-27.

It's the current year. This is one year reduction?

Yes.

This is on top of multiple year reductions prior?

10% in the prior year, yes.

All right. Very good. Thank you.

The scale of these reductions underscore the seriousness of the county's financial position and the importance of long term strategies to stabilize the general fund moving forward. Moving on to the following section, we'll turn to an overview of the fire districts. We'll look at key facts about how these districts operate and then review their revenue and fund balances. Understanding the contrast between the county's strained fiscal position and the comparatively strong financial standing of many fire districts helps frame the broader discussion and highlights the rationale behind funding changes. There are two foundational points about the fire districts in Calaveras County. The nine local fire districts are independent special districts not county departments each district is governed with separate boards and responsible for managing its own operations and finances. Second, the fire districts draw revenue from a wide variety of sources, their funding is supported not only by local property taxes and special district taxes, but also measure a revenue. State firefighter reimbursement programs, emergency medical service fees, state and federal grants, equipment reimbursement programs, and mutual aid agreements. This diverse revenue structure contributes to the stronger financial position many districts are experiencing. Together, these points highlight why the financial condition of the fire districts must be evaluated separately from the counties. The nine local fire districts operate as independent special districts with their own governing boards, revenue streams, and financial responsibilities, not under the county's authority at all. It's important to remember that Calaveras County has many other special districts such as lighting districts, community service districts, utility districts, cemetery districts that all operate also independently and do not receive any county funding at all. Understanding the independence and financial structure of these districts is essential for evaluating resource allocation and the rationale behind funding changes moving forward. I'd like to give a brief overview of how our fire districts operate and how their budgeting relates to the county. Again, fire districts are independent special districts and county departments. This means they manage their own budgets, which are approved by their individual fire boards. The county does not direct their spending, cannot adjust their budgets line by line, and has no authority over their financial decisions. Historically, before Measure A, many fire districts were underfunded, and the county often provided discretionary support to fill that gap. County administration met with Chief Herzog and Chief Johnson on April 2, 2026, to discuss recommendations for TOT and Prop 172 funding. During that conversation, we shared that admin would follow the board-directed status quo funding levels identified at the mid-year budget meeting. It was further communicated that while this is the current recommendation, the board always retains the authority to make adjustments as it sees fit. Even though fire districts are independent districts, they still receive a wide range of county services at no cost. These include services from the auditor controller, assessor, treasurer tax collector, county council, administration, and information technology. Fire districts rely on the county for treasury service, accounting and property tax administration, collections, legal support, contract and MOU assistance, and IT support for the financial system. In addition, they receive equipment through OES managed grants. Overall, while the fire districts operate independently, the county continues to provide substantial administrative and operational support to help them serve their communities effectively. As mentioned previously, the fire districts receive revenue from many different sources, the largest sources being property taxes and measure a funds. Looking at the revenue trends overall fire district revenues have steadily increased from 21 through 25 after a site decline around 2022 revenues for sharply due to measure eight and 24 and continue to upward into 25. Overall, this reflects a clear trend of expanding revenue across nearly all fire districts by the end of this timeframe. The figures here show that fire district revenues have grown substantially over the five year period from 21 to 25, increasing by just under 59% overall. A major theme in the revenue trend is consistent year over year performance. A key takeaway is that fire districts have chronically underestimated the revenue under budgeting by an average of 25.86% year after year, Actual revenues significantly exceeded what was budgeted, demonstrating a consistent pattern of revenue far exceeding budgeted projections. Here you can see a breakdown of the various revenue sources that flow to the fire districts. With the exception of Prop 172 and TOT allocations, every revenue line reflects district-controlled funding that the fire districts receive, manage, and spend. Overall, the information shows that fire districts benefit from multiple steady revenue sources that go into their coffers and support their operational independently of the county's budgeting authority. I also would like to note that Mokale Fire and West Point Fire did not include TOT revenue in their 2627 budgets and West Point Fire did not include Prop 172 revenue in their 2627 budgets that the county could see. The fire districts have not only generated surpluses, they have done so consistently and at a significant scale. Most notably, in just the last two fiscal years, the districts collectively produced a surplus of just under $9 million, a substantial amount of money flowing directly into the district's coffers and far exceeding their stated budgeted expectations. This level of surplus makes it clear that the districts are regularly outperforming their own financial projections, ending each year in a much stronger financial position than what is communicated through their budgets. Overall, the data reflects a clear pattern of ongoing measurable financial overperformance across all fire districts. Across the districts, fund balances have grown to a point where they now hold an exceptionally high financial cushion. In 2025, total fire district expenditures were $27.9 million, yet their combined fund balance equates to an astonishing 62% of operating reserve, a level of financial backing far beyond standard public sector norms. For context, the county's general fund operating reserve when taking into account all discretionary accounts. not committed, currently committed is 16.72%. And even that figure would be considerably lower if adjusted for the county's 304 million in total expenses that could become general fund obligations if external funding sources were lost. When compared side by side, the fire district's reserve position is not just stronger than the county's, it is significantly stronger. The comparison makes one point unmistakably clear. Fire districts are operating with a far higher level of financial security than the county itself. Measure A. This is the ballot question and how the impartial analysis that went out to voters, which clearly stated how Measure A funds would be allocated and used. All Measure A funds go directly to the fire district despite rumors suggesting otherwise. Every dollar generated by Measure A is allocated to the districts and not retained by the county. It's important to note that while Measure A does outline the percentage that has to be used on certain activities, Measure A funding is not restricted solely to new equipment or new staffing. Fire districts have used Measure A dollars to support existing staffing soon after the measure's inception, demonstrating long established knowledge of how these funds may be applied. Additionally, Measure A funds do not simply accumulate within individual districts indefinitely. Beyond the 10% carry forward reserve each district is permitted to maintain, all unused Measure A dollars are redistributed to all fire districts the following year. With this structure, It is theoretically possible and financially beneficial for fire districts with stronger reserves to choose not to spend their full measure A allocation, resulting in those unused dollars being reallocated to other districts in subsequent years. This design further underscores that measure A revenues always stay within the fire service system. Overall, the combined information reinforces a simple message. Measuring funds go entirely to fire districts, are not restricted to new service or equipment, and any unused dollars above the allowed 10% contingency amount are redistributed to benefit all the districts the following year. The county does not receive measuring money. Each dollar is distributed to and controlled by the fire districts and their respective boards. Now that we've reviewed the county and the fire districts overall revenue picture and discuss the eligible uses of prop 172 transient occupancy taxes and measure a. i'd like to provide an overview of the board directed changes that were made during the June 9 through 10 budget meeting and formally approved on June 23. At the June 9th through 10th board meeting, the board of supervisors heard extensively from county departments about how the general fund reductions were impacting county services and public safety. In response to the stated impacts to county services, the board made several targeted reallocations to help restore critical operations. First, the board reallocated $529,000 in TOT funds and $300,000 in Prop 172 funds from the local fire districts. These changes were used to reverse a portion of the county departmental cuts into fund the $367,000 for the CDF dispatch contract, which was previously paid for from other general fund dollars. The Board also reduced the CVB's TOT allocation by $50,000, shifting that funding to the Chamber of Commerce. In addition, board members reallocated 52,000 from their own district allocations. These combined actions help restore several key reductions, including funding for a deputy district attorney position and district attorney other expenditures, funding for snow plowing for the road department, assessor's appraiser position, a sheriff services tech position, overtime funding for multiple sheriff divisions, and to cover a portion of our archive staffing and department costs. and also to cover probation's pre-trial expenses. Finally, I'd like to note that the annual budget review meeting is held on regular agenda the first meeting in June and the public budget public hearing takes place on regular agenda the first meeting in September. This is the schedule every single year and all meetings and videos are available online. What is displayed here is the prior year TOT allocation and the allocation for the new fiscal year. Prior districts are currently budgeted to receive just over 132,000 and the CDF dispatch contract is budgeted 367,000. This reflects the updated funding structure. The board approved during their June budget actions. The argument has been made that the county is obligated to pay for the CDF dispatch contract from general fund dollars. My response to that is the county has budgeted to pay for the contract with TOT, which is general fund discretionary dollars. The CAL FIRE Dispatch Contract is an essential component of the County's Fire and Emergency Response System, providing 24-7 emergency dispatch coverage, resource coordination, and incident support through CAL FIRE's Emergency Command Center. The importance of this contract is demonstrated by the number of personnel and resources assigned to major fire incidents, Example is the Gann Fire. CAL FIRE deployed thousands of personnel along with helicopters, engines, and dozers, reflecting the scale of coordinated response required for such events. These dispatch services facilitate rapid, large scale mobilization of firefighting resources in a way that cannot be achieved locally. Without CAL FIRE's dispatch capabilities and the depth of resources they provide, there would be no realistic way for Calaveras or many other California counties to effectively respond to and suppress an incident of this magnitude. To disregard the fact that CAL FIRE is the primary coordinating responding fire entity in a large scale wildfire events would be to overlook the objective reality of how these incidents are managed. Due to CAL FIRE's quick and wide scale response to large incidents, local fire districts can not only assist on the large scale events, but continue focusing on important local responsibilities, including their essential small scale fire response, EMS services and day to day community support. Moving on to prop 172 display here's the prop 172 public safety allocation is approved by the board in June. The 300,000 that was previously distributed to the fire districts is now allocated to a county public safety department, the district attorney's office. This funding allows the district attorney to hire a much needed deputy district attorney position that was previously unfunded due to budget reductions. The table here shows the budgeted 2026 revenue for each fire districts and the Board approved reductions to TOT and Prop 172. It's important to underscore that these figures reflect budgeted revenue only because fire districts historically under budget their revenue by more than 25%. The actual impact of these reductions is significantly smaller once you compare them to the actual revenue districts ultimately receive. You'll notice that West Point Fire did not budget any TOT or Prop 172, and McCollamy Hill Fire did not budget TOT revenue. However, it appears they included a portion of TOT within their Prop 172 budget line, so that adjustment was accounted for to maintain accuracy. Overall, the table shows a total budgeted decrease of about $718,000, which equates to roughly 2.5% of budgeted revenue across all districts. And this is where the context is crucial. The actual impact is even lower when compared to the district's actual revenue performance. Finally, it's important to emphasize that this 2.5% reduction is in stark contrast to the 85% cut that has been rumored publicly. The figures on this slide show clearly that the rumored 85% cut is not based on actual budget actions or real financial impact, but is simply misinformation. Following board direction on June 23, 2026, county staff met on July 23, 2026 with Chief Johnson and Chief Winhold. regarding the TOT and Prop 172 reduction. During the meeting, the Chiefs provided a letter from the Calaveras Fire Chiefs Association with a proposal that would set the Fire District's Prop 172 allocation at zero and TOT at $662,500. Additionally, they submitted a summary of impacts if their proposal was not accepted. Overall, the main theme in the impacts is that Fire Districts would be unable to expand further in the upcoming year. Most districts are pausing planned hires, deleting staffing increases, or postponing equipment purchases. In a few cases, districts are taking additional steps like selling equipment or suspending benefit plans. But the overarching theme is that districts are simply halting growth, not cutting core operations. This is in stark contrast to the pages of reductions in the millions and cuts that the county itself is absorbing. It was communicated to the fire chiefs that any requested changes would need to be brought forward at the September 8th budget hearing as the entire board would need to discuss making any adjustments to the budget as approved in open session. This is the same information we would relay to any external entity that requested funds. During this meeting, I also suggested that fire districts with larger fund balance could draw less measure A funds to help their fellow districts that have smaller fund balances. In addition to in addition to allowing measuring money to roll over to districts that would benefit from additional funds the fire districts could offset the two and a half. percent revenue reduction by approving budgets that include a more accurate revenue figure and rely on existing property taxes and measure a revenues, instead of under budgeting those and including revenue from the county. This approach would maintain all current service levels, though it may result in a very modest decrease in the year over year surplus amounts.

Denise last section. Yes. Conclusion. It's a summary of everything. I think it's best. You give a lot of great information. I just want everyone to know this summarizes everything you said and.

Because so much misinformation has been circulating, I think it's important to close by restating a few key facts. These are the major points I want to be absolutely clear about as we conclude this presentation. Fire districts are not county departments that are independent districts with their own boards. However, fire districts receive services from many county departments at no cost. County admin did meet with Chief Johnson and Chief Herzog on April 2nd to the 2026 and communicated that TOT recommendation would be put forward as the status quo amount is directed by the board in February. but that the board had the ultimate authority to make revisions. Budget review is held every year on regular agenda the first meeting in June and approval is on consent the last meeting in June. Budget hearings are always held every year on regular agenda the first meeting in September and adoptions the last meeting in September. Fire department representatives have historically attended these meetings. All board meetings are also always posted online for viewing in person if attendance is not feasible. Measure A funding is not restricted to new staffing or equipment, and the measure did not include supplanting language. Unused funds are reallocated each year aside from small carryover. Fire districts with larger fund balances could draw down less measure A to assist fire districts with smaller reserve balances. This idea was shared. The average decrease to fire district revenue is 2.5%, which does not compare to the extent of reductions the County General Fund departments have taken, which last fiscal year alone was 10%. This year's 3.2 million in additional cutbacks were in addition to the prior years across the board reductions. This year also included layoffs and position deletions. Over the past five years, fire districts have underestimated revenue, an average of 25.86%. A more realistic revenue projection would make up far more than the 2.5 reduction with no impact to services. County administration is more than willing to assist in projecting more accurate figures. Fire districts spend less funds than they collect. Their fund balances are growing year over year. 8.9 million in excess has been collected over the last two years alone, whereas county general fund expenditures are growing at a faster pace than discretionary revenue. Even with the county reductions, we're still facing a significant deficit due to inflation, funding reductions, and other revenue coming in flat. Transient occupancy taxes are general fund discretionary dollars. This was outlined clearly in the ballot measure. Public safety is not limited to the sheriff's office and fire districts some examples of other public safety departments are probation district attorney animal services and code compliance. Many county departments that are not designated as public safety play an important role in supporting public safety during critical emergency events. In conclusion, I genuinely hope that members of the public, our internal departments, and any external partners or observers can take a step back from the emotion that is understandably built up around this issue. When we look closely at the facts and evaluate the situation rationally, it becomes clear that the county is not dismissing or minimizing the critical role that fire districts play in our community. Their work is valued, respected, and essential. At the same time, spreading fear doesn't help the public, the districts, nor the county move forward constructively. We're navigating a very difficult financial period, and our responsibility is to balance limited resources without impacting public-facing services. This includes vital county public safety operations, such as patrol, dispatch, the jail, probation, code compliance, and the DA's office, and many others that the community relies on day to day. The goal is not to undermine anyone's work. It's to maintain stability across the entire system. I ask that everyone reviewing the situation considers the full picture, relies on the facts and helps us work towards solutions that can keep all essential services strong for the residents we collectively serve. This concludes my presentation. Thank you for your time. I know it was lengthy and I'm open to any questions you may have.

It was a lot, Denise. Don't ever be sorry about something like that. I believe you went as far as you could in that amount of time. So with that, I would like a couple of the fire chiefs that we had talked to come up and say your piece, please.

All right, Mike Johnson, Evans Pass Fire District. I just want to say I read through all 60 pages. And I know how much work that is and I got to imagine you are the did the heavy lifting on that and you did a great job presenting. My hats off to you. You stood here and just delivered a ton of information. I know how exhausting that is so.

Well, the hope is just to be transparent, right?

No, it is and honestly, I think you did a great job capturing things and just to clarify, I wasn't never had any intent to. You don't have any discrepancy talking about the 85% reduction was about the monies that come from the county to the districts. Not an 85% reduction in our total funding, right? So I didn't want to please by all means. I hopefully. At our last time up here, I wasn't trying to. Spread fear, right? It was just about the funding that we get from the county and. Sorry, we've been having this 1 on 1, but hello everybody. Good morning still. How are you? I. Boy, 60 pages ton of information. And I certainly had thought had dialogue, like, you know, some. But the immediate thought is, let's go tip for tat and we'll. I don't want to use the wrong term, but. like debate it out right so certainly there are things in there that i i love numbers just like you do i think we have that common connection and i really appreciate that um i love digging in i put in a request i knew for a fact that being if it was a public records request act theresa thank you for Allowing the staff to give me some of that information and there's just so many layers to the county, right? It's just so much. Of a bigger onion than than the special districts or how what I get to do is the fire chief and work with our board ours is much smaller. We're definitely different in scale. I do appreciate this report. It really does put into the public side what I think and. I understand we're talking about today is the great work. It's a great report card for all the special districts and how well it has taken years and decades to create that financial portfolio we just looked at. I really do believe that. And I won't go belabor it too much other than I look at Ebbets Pass and, you know, our reserve status and just like so much of the monies that are, maybe I'm using the wrong term, but probably encumbered for certain funds or whatever in the county that are outside of, you know, the general fund or the 110, I think you said, or the 1010 and then the 1040, is it? 1040 is our capital, but 1010 and 1011, 1011 is our capital. rather than going like hey look at this big old number i found in here can we do i realize you're going oh no that's pieced out in certain ways it's it's designated for certain things and we're even at ebbets pass where i'll speak to that because number one it's where i work and i can up top of my head i know other districts have the same type of thing we're we're receiving a fire engine um it has to be a four-wheel drive type one which i can't find used is very expensive. It's $1.2 million. So even if my reserves look great at $1.7 or $7.1 million, like very, very soon that number is going to change, right? So even though it's like, wow, big numbers, personally, those are huge numbers. And then even at the district level, that's big. We're trying to do some other capital improvement, just like the building at the DA's office. When I heard $6 million, To build that I was, I'm like, wow, that's that's a lot of money, but we just got a. A similar type thing to try to expand or build a new fire station and I. I'm embarrassed to even put the number out there because it is. So much more than we have, or probably ever will have, we're going to look at other options. So. We feel the same struggles as the county. We feel the same. Difficulty, and I honestly, from me to all of you, I want the county's financial stability. Also, right? I want I want it all. I do. I definitely want to. I've said it too many times where I'm like, hey, I want to be part of the solution and I don't want to be part of the draw or take away from the count. I want to see us everybody flourish and have success. There's any piece moving forward that we could be a part of that. Of course, we want to continue to be a part of that in this fight in no way, shape or form. I feel would be fair to the public or to the board to say. Spire fire districts are more important in any way, shape or form than anything you talked about. You guys are we're in it together and I think that was. The sheriff did a great job, right? And she's fantastic. Not only as a sheriff, but oh, yes, director that was proof during this last fire. and the proof goes on and on and on right um sorry i have to silence my phone and i can't multitask so i used to be able to but that's not old oh look it's potential spam okay i know it's tough um anyway i'm gonna get to my point um i'll see a couple more things And I'll just put it to you this way. I get so fortunate to have CalPERS at Ebbets Pass. I'm fortunate to get health care. We do not have OPEB. We don't have benefits retirement. I saw your OPEB slide. So we're we probably have some things that I would say are on par with the county's benefit plans. We don't maybe necessarily. There's probably some things are a little better. Maybe some things here and there. But I really do feel like when I say these things, I want to make that clear. And that's. That's a blessing for me and my agency. And even then, we struggle just like everywhere else to get more people in. We've been struggling to fill a vacancy for a firefighter. We feel like, hey, we're really doing good. I feel blessed personally. But overall, it's hard to be competitive in this job market for these jobs. Now, put that aside, and I want to tell you that the majority of the fire districts have zero retirement, zero health care, zero anything. And so when I say this, when I'm representing them, I can't, all that we've done and worked for and that we're building towards and we're trying to, I think, I know the West Point chief sitting here, if my understanding is incorrect, he'll tell me I'm wrong, but they're trying for the first time to get some healthcare for some folks. First time ever. So this is a big deal. We are trying to, get on the map to help our own employees and try to do some work. So I feel like there's some parity and then there's some real apples and oranges comparison as to what we do and how we run our organizations. So, at the same time, you know, I take a little bit of an emotional blow if I hear like, hey, look at the funds that the fire districts have. And I think about the backs of the firefighters that are doing the real work out there that don't even have a health care or even a plan for retirement. So, my hat's off to all you gents because those numbers, I know you made certain sacrifices to make that happen. um and i want one day for that not to be the case but other than that in closing i know that was really short right unless you guys have questions for me because chief herzog wants to talk the proposal that we that was up there in the board packet obviously we are willing to make we want to make a concession and we've talked about that in the past and leading up to it so it's not like we're coming empty-handed um and the proposal or what we'd like the board to approve and it's really up to the board and we know full full fact that the tot money was always discretionary by the county it was just what was spoken to in a media release back in 2018 and we've always received that 25 has spoken to it's just what we all understood would be in perpetuity right um and we of course we know about the cdf contract again to reiterate the resolution in 1999 when the districts and the county came together and that's those are things in my mind that could should continue in the perpetuity of our partnership with the county now i understand there's there's financial challenges we know that the prop 172 we were thankful to get that back in 2017 and that 10 that we got um we were thankful and times are rougher in 2017. um And so the concession is take the $300,000 total, which is the 10%. Please, that's our concession. We'd like to say, hey, it looks like it's going to go to the district attorney's office or wherever the board decides it's going to go. That's great. We're not asking to retain those funds. So on September 8th, it would be to keep our TOT at 25% and then to continue to pay for the dispatch fee. But we also know At the end of that meeting, whatever your decision is at, at your discretion. Right? So. But that was our, that was our ask any questions for me before I turn it over to chief. Thank you. Yeah, thank you. I have papers that are going to be left up here, but.

Good morning members, members of the Board of Supervisors. I didn't plan on speaking in open forum, so I had something as to a three minutes, so I apologize if I'm not facing you. I'm going to stick to this so I don't get off tangent. My name is Scott Herzog. I'm the Fire Chief at Copperopolis Fire Protection District. I'm here to express my serious concerns regarding the reduction of TOT and Prop 172 funding for fire protection. As all of you know, the Gann Fire devastated our county, especially my community. My heart goes out to everyone who lost their homes and property, and especially the family of the individual who lost their life. I was there from the beginning of the Gann Fire. I attended daily briefings, EOC meetings, cooperators meetings, planning meetings, ops meetings. During the repopulation, I was out there in Circle 20, welcoming residents back, helping search through what was left of their homes, locating animals, providing information, providing lunches, food, water, Gatorade to residents, but most importantly, listening to their concerns. During this incident, I was formed because the fire reached our district. Copperopolis Fire Protection District as well as Calaveras Consolidated Fire District would be responsible for costs associated with protecting structures within our respective jurisdictions. This amount exceeds over $105,000. Instead of being reimbursed through our normal Cal OES process, I now have to seek reimbursement through federal and state programs. This process can take two to three years. Talking to the finance section chief, it's two to three years. And there's an important financial issue that needs to be understood. Federal reimbursement may cover up to 75% of eligible costs, and then state reimbursement may cover up to 75% of the remaining 25%. This means our district will still be liable for a portion of the cost while waiting years for reimbursement. For a small rural fire district, this is a tremendous burden. I start my budget in the red every single year. Through reimbursements, through sending our engine and personnel to incidents throughout California, Nevada, and Oregon, I can potentially reduce that deficit and potentially go into the black. But let me be clear, we should not be balancing our budget on the backs of our firefighters. Our firefighters make minimum wage, less than a fast food worker. They make minimum wage. They leave their families, work long hours, and accept the risk of injury because they have desire to help others. This is not a sustainable funding model. What is even more frustrating is that we were told we'd have a voice or a seat at the table when we met back in April. We were assured we'd be kept in the loop. when it came to making decisions. We told the county we were willing to ride out the highs and the lows together. We simply asked for communication and a heads up before major decisions were made. We sat back. We did not come to the meeting. Instead, we felt blindsided at an 80% reduction in TOT and 172 funding. We should be standing besides our residents today who lost everything in the Gann Fire, not standing here fighting to protect funding necessary to provide them with emergency services. We are here when the county needs us. We provide mutual aid. We send our firefighters and equipment wherever they're needed. So I'm asking this board to reconsider these cuts. If difficult budget decisions have to be made, make them with us, not to us. Invite us to the table. Let us find solutions together. Poplaropolis, as well as the rest of our fire districts, have always answered the call when the county needs us. We are asking you to stand with us in the same way we have stood with you in the previous years. Thank you.

All right. Um, that was the 2 right, Mike.

It is cheap. I don't have a view. I get you. I'll I'll entertain it. Absolutely.

Please, please.

I know probably mine was specifically some player in person, which would help after him.

Okay. Yeah, we absolutely can do that. Yes.

So she first saw a comment here about the the boots on the ground. We have technology, we have equipment, but it's firefighters that put the fire out. And so the big focus of the Measure A fund was to put monies into the district to be able to pay people a livable wage and keep those folks here. We surveyed the districts. The average pay for a firefighter in Calaveras County is $19.27 an hour. The average pay for a pump operator is $20.25. And the average pay for a fire captain who's responsible for that entire tree is $21.50. All of those are below what the milkshake guy makes at McDonald's. He doesn't have the kind of responsibilities that our folks have. He doesn't have near the mandatory training that our folks have. And that's the other challenge that we have today. We don't have control over what the state and the feds have done to us when it comes to regulations, which should be firefighter safety, but still have an impact on us. Talk about the reductions and what we're each going to get with 172 and TOT. You give my district $14,000 as opposed to what I was hoping to get. That will buy two sets of protective clothing, or three handheld radios, and that's all it will pay for, my operations. So you've heard that we've had some balances. We have been fiscally prudent. We went to the electorate. They approved that we needed money, and they would pay for the people that we need to do the job, but that hasn't made us whole, and there's still a lot that still needs to be done. So thank you for your consideration, and I'll defer to Steve.

I appreciate you guys. Let me address the board. So specific to Cal fire. We're actually neutral on the topic. But I just wanted to give some specifics when it comes to financial responsibility of the local fire district specific to wildland fires. So, wildland fire specifically, obviously, Cal fire is funded to protect the watershed. And we are here to protect the vegetation, all those things, and to try and stop the fire that way. But the structures that are within the local jurisdictions, it's actually their responsibility to do structure defense on those on those jurisdictions. So, part of it could be. And I'll give you an example, maybe from Southern California, we've spent a 1M dollars in 1 shift to do structured offense. In certain jurisdictions, and they're responsible for that unless they have a schedule, a contract through califier. So, essentially that 1M dollars, depending on how they were ordered that local fire chief does have the authority to order those resources. But if they do, that doesn't mean California is going to pay for that. That's also the same with our federal cooperators when you go to a fire up in the national forest. Essentially, they're typically going to put that structure defense block in that local department. So. And 1 of the things to think of is everything's about reimbursement, right? So typically we reimburse these agencies through and that's after 12 hours, they'll get paid back to point of dispatch. That's for doing state mission response. So that's things outside of their fire district. Or things that they're doing for, but it's when it's within their fire district, they're jurisdictionally responsible. And they're also financially responsible. So, typically what we do, obviously, some of the smaller fire districts, the goal is never to bankrupt anybody. The goal is to work together as partners, daily partners. We work with every day. Is they, they show what their contribution is. So, an example would be here on the fire with calibers consolidated and with copper, they each showed a contribution to the incident where we didn't pay for their resources because they're jurisdiction responsible for that portion. So, if that gives some clarification on reimbursement, obviously, the FMAG and the CDAA we already talked about are things that they can still get reimbursed after the fact, just like Cal Fire is going to get reimbursed. FMAGs, everybody can qualify for an FMAG if it's part of the fire effort, and we can show that documentation with the exception of federal resources. So that's something that's going to come up there and then the will do that 75% if a is awarded. For an extra 75% on top of that, of the remaining of the remaining expenditures. So, hopefully that provided some clarification. I'll be available for questions. This goes on. Thank you.

Sheriff, is there something you would like to say?

Well, I don't know the process or what you guys want to know. Go push it up.

I would like to know what you know.

Well, it's not just myself. I think there are other county departments as well that just want to be able to comment on the item.

All right. Absolutely. We'll hear each county department that will also comment on the item. And I appreciate your time.

I mean, no one likes these discussions. No one likes having to talk about a review who's essential or who's not when it comes to protecting life and property. There's always going to be a high level of emotions and that's totally understandable. I'd like to thank county admin Denise. That was a great presentation. Laying everything out some of the, by the way, this Thursday, I have been 2 years as your sheriff. Officially 2 years. Two years as your sheriff, two years as the undersheriff, and even back to the point when I was operations captain in 2022 is when the sheriff's office started making reductions and started having to take budget cuts. That's about five years, four plus years that we have not seen a status quo budget where we have not taken cuts. And Denise, mentioned something, true reductions versus excess budget capacity. Some of those reductions we started taking was slimming up our budget to actuals. It did have an effect on operations. It has had an effect on operations, but we have not seen growth When Fire Chief Winhold was just talking about the wages and the salaries for firefighters, I mean, it's shocking sometimes when you hear it. And we went through that several years ago. You know, we had to re-evaluate the staff and the costs and look at what it's going to mean for the entire county with the increased budgeted employee cost. We did the class and comp study. We're trying to recruit and retain county workers, not just sheriff's office deputies, correctional officers, dispatchers, sheriff technicians, but the assessors, the district attorney prosecutors, county council, you know, just trying to get people working within the county so we did the class and comp study that meant more budget reductions over the past four years we have actually eliminated and I've gone over this every single year in June at the budget hearing so I'm repeating myself to you guys we eliminated sheriff's office positions we cut three deputies four correctional officers two correctional technicians And then this year we had to freeze another deputy position and we had to up on the for elimination was another sheriff's office technician. Those are cuts that we've already been taking. So when Denise says she was, Denise and Teresa, when they're working with departments, that's a lot of behind the scenes back and forth. And we're not just going to sit back and say, we're here to do what you need to. We're actively engaged with what we can concede without greatly affecting our community as far as the amount of resources and services that we provide. As to the TOT reallocation, I do thank the board for what was reallocated to my office. The amount that we had to cut in our overtime budget that was reallocated, we spent in the last week. So even without there, we would already be talking about contingencies. The biggest part of Denise's presentation too, when it talks to halting growth compared to cutting critical operations, we have been cutting critical operations and we understand that This year is not a one time discussion going into next year. It's going to be even worse. We have had a lot of salary savings because it's been hard filling positions. We still have open deputy sheriff positions. You often see us advertising when there's police academy graduations, but you don't always see when people fail out of the FTO program or leave our department to go to other departments and We fill holes and you would think we would be overstaffed by the amount of swearing in ceremonies that we have, but we're losing off the back end as well and constantly trying to keep up. So I just want to re-emphasize that every county department, every department head meeting that I've attended, we've all been working really collaboratively. We understand the dire financial situation that the county's in. We'll be continuing to work on it, but it's across the board. Every agency has been cut.

Michael Mann, Rochelle is there one other question when it comes to reimbursement you're in the same predicament, as I mean we are in the same predicament, as the fire fire, so when you talk about the overtime that was spent $199,000 is what you said earlier.

Uh, it's like 106, 7 plus fuel costs plus, uh, you know, plus plus plus.

Yeah, yeah, absolutely. I think I did a total on everything there. But with that said, we're waiting on reimbursement in time. That would be a question as much for Teresa as you. And we're in the same predicament as the. Fire districts when it comes to this, and it's money spent now. Hopefully, everything comes together properly so we can see a reimbursement later.

Yeah, and it will take time, and there's no guarantee, and the recovery and financial recoup of the costs is going to be lengthy. We will never get 100% reimbursement. Some of the money spent, and we plan it when we... Create our overtime budget of what our needs are, you know, it is in there for dealing with a historical account of budget to actuals in dealing. And then we, we say in budget presentations that if there is a large incident that it's going to deplete and we'll have to come back at mid year and do adjustments and work with county admin. Um, an incident such as this is, you know, so large scale that there we won't be able to, but this was also a year where our overtime budget and the sheriff's office alone was cut by. A couple of 100,000 dollars, and so we just spent that in in the last week. So.

Absolutely, thank you for the answer. Is there something we would like to add to that to resend it?

No, the sheriff's absolutely correct. We'll be in the same reimbursement situation as the fire department's talked about. There's a very lengthy documentation process required for reimbursements and we'll go through that process. But I think we're getting reimbursed for incidents that happened two to three years ago. Right now, we're just now receiving reimbursements. So they are correct. It's a very lengthy process.

John Potter, This Denise this would add to the expenditure lines and the deficit, because we won't see that revenue so into the future, which may not even come to fruition.

So generally what the county's process is, is as soon as we get a state and federal declaration, we move all costs to a different org key to where we can book the revenue and expenditures. Last year, your board authorized us to put just under a million dollars in an emergency disaster fund to cash flow this so that it wasn't a hit to the general fund. So our office will be working with the sheriff's office EOC in coming weeks to move all costs related to the Gann Fire into a disaster sub-account, and we'll use that to cash flow.

Yeah, Captain Sturm and Sergeant Colwaite in our OES division, really great with finances. We created a jail code immediately for this incident and started tracking it apart from normal day-to-day at the onset of it.

Excellent. Excellent. Yeah. Because that's when turning in the documentation and having it clear for FEMA or Cal OES in this instance is crucial. Because if we don't get that all documented properly, we won't see the funds at all.

Yeah, and every county employee knows because they've seen an excess of emails from us as well as from the auditor's office on the tracking and the amount of 214 ICS activity logs that are being turned in and the timesheets. So thank you very much to everyone that's on our multi-agency county finance team specifically for emergencies like this.

Yeah, absolutely. Thank you. That's good. I mean, good answers and this is crucial information to the overall cost for everyone on and everything. Thank you. For further staff, would you like to speak? Ms. Craddock or Chief Craddock?

Hi, I'm Kim Craddock. I'm the Chief Probation Officer for the county. I want to start off saying this very personally. I am a lifelong resident of Calaveras County. I grew up in Railroad Flat. I have lived through these fires for as long as I can remember. I feel horrible on a personal level about asking to take money from fire, but I did that this year. Probation is a law enforcement public safety agency most people don't know about. And we work under the kind of under the radar and try to be very quiet about what we do. We provide supervision to felony offenders who are not felony offenders. People have been convicted of a felony who are not sentenced to jail or state prison. In the adult world, I won't go into the complexities of all of that, but we also supervise those being released from a lot of people being released from state prison back into the community. We have a juvenile division who we work with at-risk youth and juveniles who have been found responsible for crimes and their families. In the past few years, pretrial services has come to the forefront in California and has been placed largely on probation's shoulders. These came out of two Supreme Court rulings, the Humphreys decision and the Kowalczyk decision, which basically says that every person who has been charged with the crime is entitled to be released on their own recognizance or on but bail that they can afford and is reasonable no matter their charge unless it's a capital offense. I've seen online where lots of people were upset with the sheriff's department when the person accused of setting the fire was released on bail. But that is a Supreme Court decision and totally out of the sheriff's department's hands. Probation has been tasked with supervising those individuals or monitoring those individuals who are released on pretrial services. We have supervised everyone from felony DUI deaths to rapists to your typical low-level petty theft on pretrial services. Currently, we have 161 people on pretrial services that we are monitoring. That is double what the jail can hold. This is the first time we have asked for county contribution or anything in probation in I don't know how many years. But if we lose this money and we're strictly TOT, we were not getting any Prop 172 money, we will have to close down our pretrial services program and lay off a deputy probation officer. In the past, since 20 the 23-24 fiscal year we have eliminated two deputy probation officer positions a clerical and a clerical position and this year we have eliminated an administrative assistant position plus we have a probation tech and another probation officer position frozen probation has taken cuts from the county every year since fiscal year 21-22 even with the money that we requested to keep the pre-trial services program going we will have a reduction in county contribution from what we had last year I just wanted this board to know the consequences of not funding probation. These people will be getting out. Whether they are monitored by probation or not, it is the Supreme Court ruling in these two decisions. And the courts, the sheriff, and nobody else has control or say over that. I know the DA's office tries to keep them in, but they have very little control as well based on these decisions. Thank you.

Thank you, Chief Probation. Assessor Durham.

Good afternoon, Board. Lurie Durham, County Assessor. Great job, Denise, and County Admin. I too am a lifelong resident of the county. And as you can see, what our office does is produce an assessment role that actually produces revenue for the county that goes to the general fund and to the districts as well. We were one of the departments that were saved by a position that was greatly needed. The previous year, fiscal year, we did have an appraiser position eliminated because of budget cuts. Again, fire is going to impact our office as well. We have appraisers out there today assessing the damages to take value off the roll. So again, money coming off the roll due to fire. So, us getting our backlog, um, short up and, um, residents not have to go on the for pay plan. We discussed that in the other meeting how that impacts the county as well. But also impacts our residents. Um, it's very hard to. Have the property owners of the county come in the county and they can't pay a 5,000 dollar tax bill because it's. 2 or 3 years in the rears because it took us that long to assess them.

um it's not fair to them and um that's all i have to say stram thank you you've uh made phenomenal leaps and closing that role gap in the last so many years ever since you taking you taken on the head there and with your successful election and We have made cuts in the past so many years and everything, and you are a revenue. You bring home the bacon. And just, you know, phenomenal work. We appreciate the work you and your employees do, and we continue to. So that's all I have to say.

Okay. Thank you.

Thank you.

Barbara Uke, District Attorney. I'm so glad the assessor came up and spoke because if I have to speak after Kim, I'm typically really pissed off because the Supreme Court decisions that are letting everybody out just makes my blood boil. So I just want to make a couple of points. First of all, with the Prop 172, assignment to the district attorney's office of that 10%, I want to make it clear that there was a swap out. So it wasn't this infusion of the 10% of 172 monies going to the district attorney's office. We had a reduction, a counterpoint reduction of our general fund monies with that $300,000. So it wasn't extra, it wasn't gravy, there was a swap out. So it's almost kind of an accounting thing because the 172 monies can only go to public safety agencies so the choice at that point was either the sheriff's office probation or my office and once again we did receive you know an opposite reduction in general fund monies for that with our budget year after year, we've also been caught like other departments. This year was no exception. We lost a peace officer position that was unfunded by the board during the budget hearings. And as a reminder, at mid-year, we saw this coming, right? And we took a voluntary reduction. We took two positions in my office, consolidated down into one position, and then we were recruiting for that position. And that was pulled with the hiring freeze. And again, that is a peace officer. Looking at where we were at mid-year, we are operating now with three positions cut. Depending on how you look at the numbers, that's a good percentage of my staffing that has been cut. We are doing the best we can, of course. The other thing I want to point out is that as the general fund has shrunk and as the general fund has had issues over the years, many departments have been challenged to look at outside revenue sources besides the general fund. Now, my office cannot go out and make money. If we could, there are probably some easy ways to do that, but we obviously are not in that position. We're not a revenue generating department. We can't go out and sell, get out of jail free cards or something like that. That's not something we can do. We cannot go out and generate revenue. But we can try to seek outside funding at this point in time. I have about over 15% of my staff is funded by outside sources through partnerships and through grants. We like our victim services grant. So we have done our part and I know a lot of other departments have had to do that. Look at their outside funding sources in order to support the general fund. You know, I'm looking at all our friends with fire and of course fire, of course, and a natural disaster. That's that's a that's a big. Equalizer, right? So you might think you have problems in your everyday life, but if something like that happens, and now the disaster of fire, it's a great equalizer and they are extremely important. And we do of course support our partners in fire. I would encourage the board, you know, once the books are finally closed, you know, a lot of times there is that extra revenue that we weren't counting on. I think all of our departments, including my own, we're very responsible with the general fund monies that we are given every budget year. We recognize this is a big group effort, right? And we're all responsible for each other and to support each other and to use our tax dollars wisely. So it's my hope that there is some extra funding. My plan was to come back and ask for my peace officer position to see if there was some extra funding that we could fund that position. And I may still, depending on how the books close, But I would encourage the board that if the books do close and there is the extra funding to consider funding against some of the fire departments, if you can. Thank you, Barbara.

Thank you. And just to be clear that you did say it, but let's just stick with this budget right now.

I mean, overall with mid-year and everything, you did lose, you know, you had a consolidation and then we had a freeze.

And then we got to this. And so the swap out was to keep one of the positions. You still had a position cut at that time, right?

I had two positions cut. Yeah. Yes.

But we were able to bring back one with the swap out.

The attorney. No, no. The attorney position. Right. The attorney position. The investigator position was not. And the investigator position was the one where there was a consolidation of the two.

Thank you for clarifying. And then one other thing. When you are able to sell that get out of jail free card, please let me know. I'm asking for a friend. Right. Any further staff that would like to talk right now? Our beloved library.

I just want to say something quick. One of the things Denny said that stuck with me was the emergency support that people don't think of. The library is a leg in the chair, and it's one that people don't always consider upfront. We are often asked to be cooling and heating centers. During emergencies like the fire, people come in to charge their phones. Their internet doesn't work. They come in to look at the internet and see if it's safe to go back home. When you talk about the minimum wage jobs and People going into those jobs, trying to apply for those jobs, they use our internet. They print their resumes on our computers. They look up community resources. Every time somebody has to fill out a form for building compliance, they come in and print it off on our computers and fill it out and fax and scan it and email it via the library infrastructure. When the library is closed more days, those services are open to the public less and less. There's also an aspect of crime prevention. Adults with low literacy skills are far more likely to be underemployed or unemployed and turn to criminal activity. Children of adults with low literacy are far more likely to not graduate high school and end up in the criminal justice system. So we are a silent support for the entire community on 100 different levels. We just lost a day a week at Murphy's and Arnold. Our current budget is more adequate to support four branches, not seven. We are supporting twice as many open hours than the state average per capita on half the amount of funding. We just lost our transportation officer. If that position is not funded in an extra higher capacity, because right now the position is still frozen, that means that if somebody in Moke Hill wants to check out a book, where the only copy is located in Angel's Camp, which happens quite frequently because we have a small collection, they will have to physically drive there themselves because we will not have anybody to take books to the different branches. So all of these budget cuts do affect every single branch of the county, and some of the smaller departments support things that people are not taking into account.

Thank you. Thank you very much.

Mr. Sessions, auditor and insurer.

Yes, thank you. Good morning board. I just wanted to make a couple of comments. The first one being, thank you very much for approving my final budget movement that needs to happen to close the books. The timeframe for that will hopefully be able to close the fiscal year this week. I will send something out when we are able to do so. Uh, the other comment I wanted to make is I've been at the county for about 10 years. Um, I, it was right after the butte fire, but I've seen. Uh, are not just response, but recovery from the winter storms from the arrow fire from all these different things. And the team. Uh, captain stern, Sergeant wait. Uh, Lieutenant wait, you know, the, the public communication I was so impressed. with their organization, their emphasis on getting everything done, but then also getting everything tracked. I know there was some comment about, is moving OES under the sheriff the right move? And if this is an indication, then I am very impressed. With the presentation, I always love Denise's attention to detail, the exactness with the numbers. Very much appreciate that. One of the comments that Chief Johnson said about a little bit of the apples and oranges comparison. I just wanted to make a brief comment on that because we have a very good sense of what's in our coffers, what can be spent on what, what's restricted for what, what's been promised where. And so looking at our final numbers of truly discretionary money is something I would love to be able to see on your guys' side. If there's something where you're showing 9 million in reserves, but you've already promised 7 of it, that's information that would be, I think, important to look at before the hearing in September. So that's the last thing I wanted to say. Thank you very much. Thank you, Mr.

Sessions. One quick question. If you don't mind. I don't. You brought up the leadership through OES and everything, and she brought up bringing up, I usually call it an org key, but it's line items, anything. Already with the discussions, you feel fairly confident that we're doing a good job in documentation of everything so far?

I've been meeting with my staff that went and worked in the EOC and has been following up on the timesheets, the claims, what information is needed for what. As far as my experience here at the county, this will be our finest example to date.

That's exactly what I wanted to hear, sir. Thank you. That's great work by everyone getting to that point. Thank you, admin. Thank you, Rochelle, your team.

John Potter, All right, any further.

John Potter, Miss whiting. John Potter, I say the wrong name. John Potter, I apologize. John Potter, It was on purpose. John Potter, To use one of those get out of jail free card sooner than later. John Potter, Oh. would that i think uh bordo do is there any comments or anything before i go to public comment right now we take just a five minute break yeah we can take yeah yes uh five minute break real quick and yeah no it's there's a lot of information here

Okay, we're back to order with this. I'm going to talk to admin and the board real quick. We're getting later in the day. We're going to finish this item. We're going to go through public comment and then we're going to go through what the board has to say and finish this item. And then we'll take launch everyone. Okay. With that.

Yes, very much so, I'm sure. Everyone's getting a little hungry and our nerves get on edge. So with that, public comment. And we're limited to three minutes. It's on this item. And glad to hear and see so many people here that, you know, have a part in our process today. So thank you.

Okay, my name is Pat Goodman. I'm a McCallum Hill resident. And the last time you all met, you were pondering taking enormous funding away from the nine district fire stations. I was too busy with the fire evacuation to have much to say about all the laws, all the numbers presented today. But I will say this, and it's with a little levity for this auspicious occasion. So bear with me. Bear Mountain burned last week. Cleanup and evacuations are being sorted out as we speak. Bear this in mind. There were bears on Bear Mountain. The bears were getting out of town fast with their cubs. They probably didn't want to go downhill, so they were probably going up the hill toward Moke Hill, West Point, as they are likely to run uphill anyway. now what would happen if the bears fled into the marijuana grows and the grows caught fire with all that smoke we'd probably have a bunch of stoned bears per noaa catastrophic firestorms are probably going to happen again soon maybe tomorrow so please fully fund the nine district local fire district stations and you know what about unintended consequences or like unintended liability costs for the bears of course first responders are key to positive outcomes and thank you for listening sir

Good morning or good afternoon. I want to thank you for giving us an opportunity to speak. I know it's raw today. There's a lot of emotion going in here. I understand. I want to talk really more about some specific numbers. I provided the supervisors with a quick PowerPoint presentation you guys have probably seen, so I'll just touch a couple points on it for you. I think we're all here for the same thing. We're trying to get this done. We hear it in here amongst all the different departments. I understand that. And that was a powerful PowerPoint presentation. If she ever needs a job somewhere, Warner Brothers would love her. Okay, I'm telling you, they love PowerPoint. Excellent job. Don't get so hard. Okay, I won't. But I do think in a way it was eloquent in that what it points out is what's at risk. And fire protects all the revenue. That's the thing we kind of want to keep in mind, is that they are the one group that protects the revenue. It's the property taxes, it's the sales tax revenue as well. Those are what get hit when there's a fire, when tourism gets hit, when our force and the reason people come up here If they don't see that and that's lost, then we all sink further. If we look back at Butte, there's a case to be made that we still haven't recovered from that. So it's worthwhile to see it as an investment in ourselves. Another part of it is that we want to keep in mind the individuals in our community because fire is also a critical part for homeowners and auto insurance. and the the insurance companies look at the data and if they see a shift in staffing staffing is 50 of the weighted average of what they look at then the insurance rates are going to go up what else goes up is auto insurance rates and you kind of wonder why it's because when they see a reduction in staff they know that this is the ems out here and response times go down so this is going to put a burden on the citizens as well increased homeowners insurance and auto costs so that hasn't really been factored in quite yet and i'd like it to be part of your consideration into what we're looking at um again i understand that there are some tough choices that are being made here i appreciate you guys taking the time to listen to all sides on it thank you very much thank you

Christopher Budner, publisher of calaveraswatchdog.com. I am the son of a firefighter. Excuse the hat, I'm leaving it on as a tribute to these guys. What I heard in this presentation is a very strong justification for cutting the Calaveras Visitors Bureau TOT allocation to $0 in fiscal year 2026-27. This caught my attention. TOT revenues have remained relatively flat. The Calaveras Visitors Bureau is primarily responsible for generating and growing TOT revenue from tourism. The CVB's TOT reserve of over $518,000 per its last tax filing for fiscal year 2425 must be spent down before any more funding is allocated to the CVB in fiscal year 27-28. Therefore, spend down the CVB surplus and reallocate the CVB's $350,000 for fiscal year 26-27 split nine ways across the nine fire districts at $38,000 each, which could pay to outfit two firefighters per district head to toe in state-of-the-art protective equipment, leaving over $8,000 in change per district. Let's review the CVB's TOT surplus history. Fiscal year 2425, net assets or fund balances $518,004. Fiscal year 2324, $523,967. 2223, net assets or fund balances $637,814. Fiscal year 21-22 net assets or fund balances $558,728. These excessive TOT reserves accumulated as the CVB continued receiving annual TOT allocations from Calaveras County and the City of Angels Camp are funds the CVB has demonstratedly proven they're unable, incapable, or grossly unqualified to effectively invest in consistent tourism revenue growth. CEO Hitchcock, if you truly want to demonstrate fiscal responsibility today, you will commit to directing Martin Huberty, who is the D3 supervisor and executive director of the CVB, to reveal the CVB's year-end net assets or fund balances as of June 30, 2026, by the next Board of Supervisors meeting. If those surpluses If those surplus TOT funds exceed $350,000, the CVB's TOT allocation for fiscal year 26-27 of $350,000 should be reallocated to the fire districts. The CVB's fiscal negligence by inexplicably hoarding such staggering large TOT surpluses is unacceptable and explains why TOT revenues have remained relatively flat i think we can all agree austerity has never helped a sheriff or a firefighter save a life my name is christopher butner publisher of caliber as watchdog.com neither have you miss gonzalez three times is the charm please right that was two this is your third time up at the mic today so um i would just like to say thank you guys for listening to all of us

and listening to the strength of our firefighters and our captains and chiefs, we need this TOT to stay with them. We really do. She made it sound, and I'm outside looking in, I don't know nothing about nothing other than I'm a homeowner. She made it sound like these guys are rolling in dough, like every weekend they go have a great time and they got these unlimited budgets. They do not. They are out there 24 seven in the grime and in the grease and the dirt and in the fires. I'm sorry, but they deserve that TOT. When the next time you guys hear about a fire somewhere, who's the first on scene? They are. This TOT comes from people that are coming into our county, right? They're people visiting us. First people, when they get a call from Lake Tolick, guess what? They show up. When they get a fire at a house, they show up. Does anybody else show up? No. We want to hear about it on the scanner. So these guys really, really deserve the TOT as a taxpayer and as a person that supports my fire department. They really this really, really, really needs to be thought about hardly because I don't I didn't understand much of that. I'm not that sharp, but I can understand that it was looked negatively in that budget. And you know what? It's not negatively. These guys work very hard for every penny they get, and they deserve every cent of it.

Thank you, Miss Gonzales.

Chief Young. Good afternoon, ladies and gentlemen. Don Young, Chief of San Andreas Fire Protection District. I have over three decades serving the community of San Andreas and Calaveras County. I'm very proud of that. The reluctance to it is that by doing so, I took a job that I received no benefits. I received no retirement. I received a salary. I worked two jobs, ladies and gentlemen. I work two jobs in order to make ends meet, take care of my family. I don't want my firefighters to go through that. I'm not looking for a gift horse, but this was the one year that we were actually going to be able to offer benefits to the young men and women that work for the San Andreas Fire Protection District. We're not floating in money, and indicated by this program that was presented here, I think, It's tainted in my own opinion. I don't think it is an accurate accountability of things and how things are and what our budgets are and what we have out expenditures. And it's unfortunate. I don't blame her or the CAO. I blame the fact that there's just not enough openness about what the expenditures are. But as an example, engines, what they cost, what it costs to repair them. I'll eat that. But I can't when it comes to my personnel. I'm looking for some help. I don't want to take away from the sheriff's office or probation. They're wonderful people. I work hand in hand with the sheriff's office on two different, completely different job aspects. with both the coroner's office and with the fire district and we have the greatest report in the last few years that we've ever had in decades it used to be the cops had the guns the firemen had the hoses there was no interaction there was no communication none whatsoever those things have all changed dramatically and we don't want to go from that we don't want to be played against those folks or the va's office or anybody we're not wanting to play us against them But I do have concerns, and I know that my brothers sitting right here with me right now have the same feelings, that we are struggling, even with the Measure A monies. And I mean, that was the first thing that was brought up. I think it's unfortunate because it was a gift, absolutely. It's helped us tremendously, but it didn't take care of everything. I know you have decisions to make, and I know they're all tough. We all do. I respect you, and I appreciate everything that you folks do. Thank you. Thank you. Keith.

Further public comment here? Online, Ms. Simpson.

Yes. Martha?

oh hi i'm just sorry to hear the background news the background noise i just wanted to say again i hope that you will support the fire team's suggestions um I know that we probably won't be able to give them all the money that they have been expecting. But I do hope that we will figure out the best thing to do for them and support the firefighters. They all deserve benefits. and new equipment so that you will do your best to work with the budget i also want to thank the university of venice who put together that fabulous uh presentation way over my head really impressive so thank you so much and also again i spoke earlier about the library so i hope that you will consider uh all the things that they talked about and uh you could be able to continue to support our library and keep our library as a normal and emergency open thank you so much

We have one more public comment. Michael?

Yes, can you hear me?

Yes, go ahead. Thank you. You have three minutes.

Thank you. Mike Rogers, Valley Springs. Full disclosure, I sit on the board with the Calaveras Consolidated Fire District, and I very much appreciate the presentation that was shared with the public. do want to clarify a couple of things that were in the presentation i'm kind of a you know a facts and data guy so um when i became when i came on to the board we had a lot of challenges and there were there was a slide that dealt with revenue streams for the fire districts and i can tell you that the state uh firefighter reimbursement fund is a very volatile revenue stream it can be as much as 40 or 50% of the revenues of some of these districts. And then the following year be less than 20%. It relies on fires all around the Western part of the United States. And it's not a stable, reliable revenue stream. As for state and federal grants, I don't think I need to tell anybody in this room, The situation our state and federal governments are in, that money, I've not seen it in all the years I've been working with the board. I haven't seen a lot of grants come through. So that slide is a little questionable. So what Measure A did for us is give us stability. It gave these fire districts stability, financial stability, which they did not have. And it also gave us an opportunity to provide a decent package for these young firefighters. We have a very difficult retention problem with all the fire districts in the county because we traditionally are not competitive with the larger fire districts. I get it, it's part of the deal here. but we've made a very concentrated effort to try to improve that package. Our firefighters are very young on average compared to other districts. Our firefighters are out there. 75% of the calls they go on are not fire related. These are accidents. These young men and women are extracting people out of automobiles on highway 26 and highway 12 regularly. Some of them, our guys are 25 years old and they need our support. And so as to measure A, we took a very conservative approach to our budget because the county auditor gave us estimates initially, and we based our budget on those estimates. Those estimates came in below what ultimately the revenue stream turned out to be. We did not know clearly what that revenue stream would be. So we did the fiscally responsible thing and we were very conservative with our budget. So the notion that we have this huge reserves or overage or whatever belies the facts. So I encourage you to be very careful in making this decision

in terms of how you're supporting and what message that you're sending not only to these firefighters but the community thank you very much we appreciate the comment miss simpson is there further on one we have no further online public comment all right with that i'll bring it back to the board this is an informational item so we aren't making a decision today But we're handling all sides as we move forward. Let's go ahead, if you're willing, we can move down from Martin, if you have any comments, and then Supervisor Andall, Supervisor Fullendorf, and Tafanelli, if you're all good with that.

Okay, I'll start. Thank you, Chair. We're 6 weeks away from the final. I would just want to reiterate what Supervisor Toffanelli always reminds us until we know what we're getting from the state. All of us could change. I really wanted to thank Denise. Thank you very much for that presentation and thank you. Chief Johnson and Chief Herzog for speaking. And for the department heads that spoke as well, because I think, you know, you do see the predicament that we're in. And trying to figure this out and like I said, we've got 6 weeks to figure it out. So, um. I won't say more than that. I know you both have presentations to give so. I'll hand it over to supervisor and all.

Yes, I've been kind of taking notes as we go along. Um, you know. I think that what I hope that the community understands what I really hope that all the chiefs understand is that. we value you. I think what is really unique is that within each of your communities, you are that trusted, steady, readily available group that is within those communities. And it goes beyond your emergency response I'll point out West Point in particular, you know, it's at the far reach of the county, right? And oftentimes Cal Fire could be gone on an incident, take a while for the sheriff to get up there, ambulance services to get up there. And that fire station is that place that people know they can go. And, you know, we all recognize that and we value it. And we by no means want to, you know, subject it to not providing that level of service. We also heard from county departments today, and we know that those are also important to residents. In addition to the calls, the emails, the messages we're getting about fire, we're getting messages about the libraries that are cutting back and in West Point currently closed. We're getting calls about catching up those assessor roles, people that are getting hit with these extraordinary bills and do not understand why. It is important that she gets that caught up and we stop that from happening and generates that revenue for us. People want deputies on the street more. People want the archives open. We're getting calls constantly. It's like, where do we cut, folks? Where do we cut? Caroline Miller, I am optimistic, as we move through the next couple months that we continue looking at the whole picture we you know recognize actual revenues and expenditures and keep looking for efficiencies and keep working together. Caroline Miller, But you know the glaring fact is that we need more revenue in our county across the county across everything we're not meeting. our needs as far as expenditure. So that's something that I think we need to all look at. I think as supervisors, we are committed to that and having those conversations and working with the community, the departments, the districts, and being good stewards to the taxpayer dollars, because at the end of the day, that's what we have to do. So I appreciate all the collaboration today. I appreciate all the people in the room today and the emails we're getting and the ideas, you know, Let's keep moving forward as a community towards that long-term financial stability.

I honestly just debated whether or not to say anything today because it's been an active last couple weeks. First, I want to thank admin office and Denise for all the work on this. You had limited time to put this together, and I really appreciate you bringing this, not just in front of the board, but in front of the public for transparency. When I first started on this board, the county was in a $9 million deficit. In this last, what, six years, we've strategically made hard decisions to reduce that deficit to what we see today. We still have work to do, but this is not sustainable. We need to continue to evaluate our revenue as our costs continue to go up with inflation, state mandates, and et cetera. Department heads have explained those examples. None of us likes government until they need something from them. That want is straining our general fund and we're now seeing the consequences, such as library closures, county archive closures, limiting staff and community engagement, eliminating funding to community activities, and etc. County has been proactive in making decisions to support emergency county services. Those examples were mentioned earlier by Denise and Supervisor Stopper, such as the emergency funds. And it's not just for fire. We recently had the winter storms. So that fund is to circulate many emergency responses. And it's imperative to plan that. Putting the funds in the OES to work on fire mitigation, such as fuel breaks and evacuation routes, are also a responsibility that we need to take into consideration. County has been wise to make those forecasts. Denise mentioned that each district is run by a board. Like us here, we have to make those hard decisions. We have no jurisdiction over the outcomes. However, I implore the public to participate in those local fire district board meetings and their budget planning. Fire is personal to me. I've worked with Fire Safe Council. I've worked in helping with fuel breaks. I have my own personal qualifications and I've seen some of you even out on the line. I value each and every one of you and the job that you do. But now we need to make a decision. And I hope that as we move forward over the next six weeks, that we can continue to have these open conversations that are honest, transparent, and we understand where we need to go i've been elected to sit on this board with my colleagues to make sure as we've said in the last meeting no stone is left unturned and as we walk through this i hope to see in the future that the board discuss more revenue so we can continue to to provide the services that the community expects of us including one of those being the library I think public safety for the work. Again, the districts are valued. Some of you, I've grown up with you, and some of you have watched me grown up. And I hope that we can continue to work together. I respect each and every one of you. And I look forward to the board budget presentation in September. And I hope everyone in this room and those listening online are continuing to be part of this discussion. Thank you.

We'll send this. Yeah, I have a lot to say, but, you know. It's it's difficult not knowing what's going to happen until we get to the final budget as I brought up before. This is a preliminary budget and I'm looking with staff to find avenues to get some money to you. It's not like I'm just we're all just. Which well, that's it. That's not the case. As a matter of fact, I've asked Denise about and Greg had brought up. We haven't closed. We just close the books this week. I don't know if we have. Collected more tax than we had projected during the last year. That's 1 revenue source that maybe we can use if we are over the tax rejected, whatever that amount is of giving that back to you guys. whether it's 100,000 or whatever it is to get back to where you guys need to be. Believe me, I'm with you. Most of you have known me for all the years I've been on this board. I led the charge in 2018. Chief Dickinson just came on and led the charge to get the TOT to you guys because you were drastically underfunded. I led that charge and got the board to agree to give you the 25 percent. And it's very difficult knowing that this is happening the way it is. But every department in the county right now is taking drastic budget cuts, just not this year, over a period of years. And I live in the county, like was said, I live in a rural part of the county. My subdivision is all five acres or more. And so, and a lot of the people don't keep up with trying to be fire safe and they get written up by Cal Fire for not doing it. Every year I mow a great amount of my property, but that doesn't mean it's going to save it. You don't know because you're next door neighbors or whatever. It's very difficult. But I'm 100% behind you guys. 100%. And I understand what you're saying about employees. trying to retain employees when they can get experience and then go to Stockton or wherever where they're getting benefits and they're getting a good wage and trying to retain them here. It's very difficult situation and I'm with you guys and I will do everything I can between now and September, which I've already tried to work with staff on to get some funding, find whatever funding we can get to add to your Funding that we have reduced. So, we'll see when it comes to final budget in September again, though, you don't know what the state is going to do last. I heard they had over 350Million dollar deficit or million dollar deficit and what they usually do and have in the past years. I've been on here. Like I said earlier. They take it from the counties and just tell the counties deal with it. Um, so that's something that we need to keep a close eye on. Hopefully they don't do that. And hopefully we have some, um, some, um, additional funding coming forward. Um, because I will be pushing for you guys to get that. That's all I have to say. Thank you. Mr.

A lot's been said and we all I think everyone in the room. Really has the picture is, you know, the pie is only so big. And there's so much apple pie to go around. And it isn't necessarily a sweet right now. When it comes to the size of our pieces. You know, the Mr.

I was here on the other side of the dice when they, when they put that through the same year I, I got elected in and then I followed up and I was in my seat the following year. Mr. did leave the charge on. Making that general fund comp contribution the way it was. John Gerstle, And with all intent, but when they were putting up before everyone, I was, I was like why don't you go to a you would, if you would have made that specific you would have had to have a super majority on the election to make that specific in those signs so it's a general fun. John Gerstle, item. And I do believe the intent of Toffnelly when he, you know, when he first put it there, that we would keep it that way as long as it was beneficial to the county as a whole. And I've been one to stand by that even through last year.

And a majority of you chiefs were here when I said it. I said it at that time. And it's not to pit one against the other. It's like there are so many essential services that are losing out right now. And they're all important, every one of you. And the decision's not easy moving forward.

Ms. Fullendorf brought up a $9 million structural deficit when she first came in. That first year I was in, that when we approved in June, the first step of the process and gone in December, that was originally looking like $13 to $19 million structural deficit. And I want to say something here that, like, through all this hardship and no matter what you feel transparency is, is this board has worked consistently to reduce that every year. Closing gaps, closing carryovers in different departments, which they actually, in a way, is kind of brought us to this point today. Because it's actually a lot of that 13.

To 19Million dollar structural deficit before was. Like buried in surplus that was carrying over in counties back back in the past. Now it's actually more transparent that you can see it.

It's not like. It is what it is and that's where the hard lines get into is like. We can't dip into those funds because. We've made them all substantial and putting our entire budget together. We're not in a good position as a county financially, but because we've been doing this so many years, talking with other counties and working through CSAC, we're in a better position than a lot of other rural counties right now. because they have not been proactive.

They've been continuing moving down the course that they have been in years, hoping that something with the economy would get better.

We've had ups and downs of the economy. Right now, we're on the brink of something that You know, could hurt us more where it won't be anything like two thousand and six, seven, eight with the housing crisis like before.

But when the assessor comes up and she says she's catching up on the role, which in two thousand and nineteen, two thousand and twenty. I had people calling me from all orchard estates that all sudden they were having to pay 4 years passed on it on those beautiful homes, and they they had renovated those houses and put because they were paying on bare land, because the rules hadn't been caught up, and also they received a bill for 4 years. on all the difference for houses that amounted to a million dollars because they put in a pool, they put in an accessory dwelling with a garage underneath. I mean, it's almost unfair for me to see a bill like that. I can't even imagine getting a $25,000 bill all at once and say, hey, you have to pay it within 90 days, and you have to pay it, and you can put in something with the assessor to have a hearing to contest it, but in the end, you really own it. So if you're going through a process, that's hard. She's caught up the roles, but these roles could go into a decline in value. And in that sense, she just talked about it a little bit when it comes to the loss of value on those places that burned. And that would be a reduction to our income, our revenue. And if the housing market even goes down a little bit, there's going to be a decline in value, which hits our total in the end. We've taken so much from our departments that there isn't much more to take. There's not much more meat on the carcass to take without completely losing services in other areas. This is the first year we're looking at you. I would hope that things are different moving forward. I hope that we can actually get some water out of some rocks here shortly because that's what we're looking at right now. And hopefully it isn't to the detriment of any economy in the future that puts them out of business. But I'm willing to look at those things and we'll have a decision for you in December. I hope things are better, but I'm planning for the worst. And it's not personal. This is the first year we've done it for the fire departments. So far, four years prior, we did it to every department in the county, and there are departments who are responsible for them. You are valued, and so is everyone else.

That's where I stand on. Is there any further comments by the board?

I would just like to say for myself, this, this isn't a permanent doesn't mean every year we're going to take money or cut you out completely. It's a situation that we're trying to budget or. I balance our budget right now and we've taken money like you said. from the departments every year. Again, to me, I can't speak for the other board members. I'm not looking at this as a permanent situation. Things get better and we can go forward. I'm not even sure that it would be the same next year. It might be more that you guys get next year or even full 25 percent. It just depends on where we're at and what we're looking at. Again, I'm willing to help any way I can to find some money this year for you when we get to that final budget. So.

Thank you Mr. Is there anything else any other staff would like to say. Teresa anybody with that we know.

I would like to say that I appreciate everyone's efforts in this trying to figure out how to balance the budget and provide public services across the board and public protection. It has been a very challenging year. We understand that it's a little disheartening for folks out there to, you know, to take these reductions in funding. But the reality is that the money is simply not there and we can't just print it. We don't have that capability. So the board's been very good about really looking for new funding sources. We're going to be looking at some other things as we move forward. And all I can say is that we're hopeful that we turn a corner in our future budgets and are able to provide funding not only for the fire departments, but our own departments who are really struggling right now with trying to retain employees as well. A library's perfect example. Most of her employees are less than full-time. They're non-benefited as well. They don't get benefits because their hours are so low. So it's not an us versus them thing. It really is about trying to create a system that serves the public with the resources that we have.

Brett KenCairn, Thank you with that.

Brett KenCairn, I think we're done for lunch um I appreciate everyone's time here and everything is a good solid conversation I felt like it was positively received. Brett KenCairn, Even though it's a negative issue. Brett KenCairn, So with that lunch well. Caroline Miller, Chair what.

Caroline Miller, When would you like us to return.

142. uh two o'clock four five minutes half an hour lunch yeah i think i think two o'clock's fair okay that'll give everybody plenty of time to get some and i'm some sure some people are coming back for some of the other issues as they stood up for the uh yeah yes okay thank you

Thank you. We're back to our regular agenda after lunch. We'll move to item 17. Ms. Simpson.

Item 17, informational item planning discuss the possibility of directing staff to bring forward an urgency ordinance temporarily preventing the establishment of data centers as a land use in Calaveras County pending further study.

Good afternoon, Board of Supervisors. Brett Sampson, your planning director. Today I'm here to speak to you about probably your second least favorite item of the day. First would be budget and budget constraints, and now I'm here to talk to you about data centers. Data centers have really come up Recently, and they're very concerning to local jurisdictions throughout the country right now, data centers are kind of the, we'll call it the very, very large impactful project of the year or five-year increment. Really before, right before data centers, it was very large warehousing distribution centers, and I'll leave the company's names off of who does those, but that was kind of in the same bent of very large projects That don't fit into a local jurisdictions land use designation. So staff is concerned and that's why we brought this item to you. We are concerned about a data center, possibly coming into the county and being situated on a site that isn't appropriate. That isn't one of the main concerns that staff has and I'll just say it is. It's our belief that these types of projects really should go through a very robust California Environmental Quality Act process or a CEQA process to analyze the significant effects of these large scale projects. And just to name a few, these types of data centers can produce a significant amount of noise. They use a significant amount of water. That's one of the biggest concerns. Basically, as far as land use and water usage, you have a nuclear reactor that uses an incredible amount of water, and then somewhere down below that is a data center, and then there's everything else in our society. So the amount of water usage is significant. There also can be light and glare impacts at night. These facilities are very large. They need security. They need lighting and all of that. So there are significant environmental impacts associated with data centers. One thing that has come up that I've analyzed in other types of projects, not specifically a data center project, but the ability to create a heat island. and these projects are so large in scale and have to have such robust cooling mechanisms that they can literally change the ambient temperature and the temperature of the ground in the immediate vicinity of the project to what extent we don't fully know to what extent There will be environmental impacts as a result of that. I don't think that we totally know that yet. But that is the reason for the concern. The reason is that these projects are so big, they take over so many acres and they need a lot of water energy and all of that. So. Typically a project like this would be analyzed in a full blown environmental impact report. And many times a project like this would have some sort of significant unavoidable impact like noise or like a heat island or something like that. In those cases, decision makers typically weigh the benefit, the community benefit of the project versus the impacts. And you'd have to override that impact. And so you'd be forced into a situation to try to identify the benefits of a project Unfortunately, in this case, a project like a data center, many times your decision makers will approve a project or override an impact because it produces jobs and because it produces a significant benefit to the community. So in this case, data centers really don't produce that many local jobs. And so it's kind of a difficult project for us to get our hands around. Staff is concerned that somebody would try to come in and say, I can put a data center here by right. Because they don't want to do sequel. They don't want to do the full environmental analysis. And obviously, that'd be very concerning to staff. I'm sure it'd be concerning to you. So, we're here today to see if you want to direct staff to come back. With a, an urgency ordinance. That would basically define data centers. and then disclose that data centers are not allowed in the county as a land use or as a land use type. So it would be very specific of We don't, you know, whether you fit into what other land uses, this is not allowed in this county. So that is what we're here to get direction on today. I will tell you that. These projects are very impactful. That's what we're seeing as they're coming up it. We do have the California environmental quality act in this state, which is great in this case, but it's not great if. somebody some way is able to circumvent that process so that's that's what we're concerned about that's what i'm concerned about as your planning director is somebody circumventing the process and basically adverse impacts are allowed to happen to the community as a result so i'd happy happy to answer any questions but we're really here just for corruption today um i think that whoa

Turned it off, so I wouldn't interrupt you. Thank you. We'll have unless there's pertinent questions right now, we'll have public comment. And then we'll move forward on. Questions and addressing.

Addressing public comment and everything else from there. So keep your notes. We'll. Address public comment after they're done doing that and then we'll work back with the board and. Based on everything presented from you and the public. Thanks. Thank you. So, yes, you may line up. And there's, there's no half an hour. You all get to speak. Um, 3 minutes and then to the side. Thank you very much.

My name is Pat Goodman, I'm a Mokil resident, and I'm here to speak regarding the data center. um everyone i've spoken to everywhere is generally opposed to data centers data centers can suck out all the water around them leaving citizens short of water data centers can suck up all the electricity leaving citizens holding the bill and we are already experiencing high pg e bills data centers provide jobs initially to build them probably highly skilled workers not providing entry-level jobs for calivarians when used data centers are left for others to clean up the mess what happens when the bears from bear mountain flee going up the hill through the burning cow cannabis grows and are stoned from this thick smoke and encounter a data center we need to study those bears reaction do the urgency warnings thank you for listening good afternoon

Thanks to the Board of Supervisors for what you do and also airing this issue of significant importance, particularly from an occupational, environmental, safety, and health perspective. I come to you with brief remarks. My name is David Legrand. I'm a community activist with and a member of the Motel Lions and the Veterans Memorial District in Moquil, as well as the Historical Society, and also a board member with the Calaveras National Little League. All of those issues set aside, I'm not speaking on behalf of those organizations, but are all a concern to those organizations and the people that they represent and have as members. I fully support item 17 in terms of its intent. I should also suggest that in my previous life, I had some experience in this field. I was occupational safety and health director for the Communications Workers of America headquartered in Washington, D.C., where I worked and dealt with very similar issues, not specific to Data centers, however, I've retired 8 years ago before data centers really became. Popular, you might say, or part of what we're in our discussion. I would go a step further with 17 though. I would suggest. That the board develop a comprehensive analysis. of what a data center is as it goes forward with this issue. The pros and the cons, I'm not sure there are many pros, but certainly cons. I'm just going to outline some of the issues that come to mind without elaborating. You did a great job presenting. First of all, concerns regarding the electrical grid. I'm sure some of you have been following data center issues around the country, and the taxing on the electrical grid has been a real negative in many, many communities. Not only a negative, but it's also driven up energy costs for residents substantially, something we don't need in Calaveras County. Water usage is a significant issue. Where are they going to get the water from? How are they going to dispose of the water? What chemicals are they going to use? Where are they going to dispose of those chemicals? Those chemicals most likely are carcinogens. Carcinogens in the water table are not a good thing, needless to say. Even your less than carcinogen Division you might say are also not good. We have experienced some of that with the marijuana growing here in Calaveras County, where lots of folks use very toxic chemicals on the marijuana grows.

Thank you. Sorry your time is up.

Oh, I'm sorry. Okay. Well, thank you. I stand ready for any questions you might have.

We will address public comment at the end of public comment. Okay. Thank you.

Hi, my name is Jan Hamaker and I can't add a whole lot to what they have said, but I urge you to weigh the economic benefit to the county of such a place. To me, it doesn't fit. This is a rural place where people come to get out in nature and water is always an issue in California. I don't care what you say. We might have a good year, but you know, we're going to have 10 bad years to follow. Drought is a thing. Why would we put something like that anywhere in California in my opinion? We are the breadbasket of the country. We need water for agriculture. We need clean water to drink. We need clean and plentiful water to keep this state going. And some of the states who were initially super excited about data centers, Virginia, Georgia, Oklahoma, offered great tax incentives at first, and now they're starting to pull them back and relook at the whole thing. Because as David pointed out, residences, bills, people are barely making it in this county. It's an aging county with people on limited income. Having a high PG&E bill can really, really put the hurt to people. And you know who is making money on this mostly? Tech bros and landowners. That's who's going to benefit most. And when they get what they want out of it, they're gone. And we're left with this polluted mess, monstrosity. And if you've seen pictures of them, they don't look like this. You know, this is what I'm here for. And a lot of people are these, you know, the farms, the rural beauty, the recreational opportunities in nature that can be, So noise, like you said, they're noisy. The lights are on 24-7 bright. They disrupt wildlife migrations. And just for some data, I looked up on the Brookings Institute this morning, and there's a grid where there's a data center that serves 65 million people. And in one year, their water usage went from 2.2 billion gallons to 14.7 billion gallons in one year. And two thirds of that was from the data center. And we have to think of our environment these days. We've pushed it to the max. So I'm not for it. I think AI can be a great benefit, but more scary to me is the harm it can do. There are people having relationships with AI entities. I mean, you know, people that aren't mentally, like, anyway, that's beside the point really here, but there's many reasons that I oppose it.

Thank you. We appreciate your comment. Here we go again.

My name is Christopher Budner, publisher of CalaverasWatchdog.com. We live in a remarkable part of America where our wildland urban interface communities are either in or on the fringes of 27 million acres of pristine Sierra Nevada wilderness. The Stanislaus National Forest alone is 898,000 acres And the home to the irreplaceable Calaveras Big Tree State Park, considered one of the most pristine giant sequoia groves in the world. While a data center poses numerous threats, excuse me, poses numerous threats to our communities. Let me just, I just lost this. Sorry about that. uh the dangerous tesla supercharger facility at meadowmont uh center is one of our more glaring threats to our community right now tesla superchargers themselves are by and large very stable and safe technologies but electric vehicles are still prone to and susceptible to catastrophic fires lithium battery technologies similar to those found in modern modern data centers which increasingly use lithium-ion battery technology in their uninterruptible power supply and battery energy storage systems in an EV car fire can often require tens of thousands of gallons of water to bring an electric vehicle fire under control and or extinguish. The Arnold Tesla Supercharger poses unique threats beyond similar hazardous supercharges according to Assemblymember David Tangipa's staff citing similar hazardous threats from other Tesla superchargers in his district, all of which are detailed when I first reported the potentially dangerous Tesla supercharger facility at Meadowmont to the Calaveras government beginning in July 2023 in a highly detailed threat assessment report that I allege this government has not taken seriously but anyone can review online. The unique threats posed by the Arnold Tesla Supercharger, which is sited behind the Meadowmont Center, is it is within 60 feet of 2,000 gallons of propane storage tanks under towering distressed trees in proximity to a massive community of wood structure homes with limited ingress and egress, all within four miles of Calaveras Big Tree State Park in an immediate community of 4,400 full-time residents. An electric vehicle car fire at this location could be apocalyptic regardless of how close Ebbets Pass Fire District and the Arnold Cal Fire Unit is located in proximity to this Tesla Supercharger facility or how fast fire officials think they can address a fire at this location. Just reference the speed of an area consumed by the Gann Fire. it is respectfully requested that the calaveras county government first fix existing issues with current irresponsibly and irrationally cited technologies such as this tesla supercharger facility before considering other potential threats to calaveras county's safety thank you sir thanks beth

Hi, Roberta course over until Calaveras. So I'm urging the board to pass an urgency ordinance, banning data centers in Calaveras county. 4 reasons why we don't need a data center in Calaveras county is the energy resources would take away from citizens and raise our prices. Especially when our energy source is already stretched to capacity on very hot days. I don't want my PG cut off to support a data center. Lake Tahoe is also having an energy company that may stop their contract delivering energy to the citizens so that they could power the data center there. It's estimated by 2033 that data center could require 5,900 megawatts of power. That's enough for thousands of homes. Per PG&E, building data centers and the infrastructure to support them can take a long time, sometimes more than 10 years. Building a data center here would be putting the cart before the horse. Our water sources are already stretched to the limit and way too expensive as they are. Data centers use a tremendous quantity of water. The noise pollution data center's noise is dominated by low frequency hums from fans, compressors, and transformers. These long, low energy waves travel farther and more easily through walls and glass. and high frequency sound. The noise is 24 seven, and it's just not loud, it's persistent, which can cause sleep disturbances, stress, anxiety, cognitive impairment, and even cardiovascular strain over time. The jobs, there would be a quantity of job of temporary jobs to build a facility. The people required to run that facility after construction jobs are gone are minimal considering the high cost of energy, water, noise, impacting our rural quality of life. So, again, I'm urging the board to pass an urgency ordinance, banning data centers in Calaveras County. Appreciate your time.

Thank you.

Good afternoon my name is Colleen Platt with MyValleySprings.com and I agree with just about everything that's been said previously so I won't repeat it all. But I do ask you to please do direct the planning director to bring forward an urgency ordinance temporarily banning data centers as a land use in Calaveras County. As has been stated before, they use a massive amount of energy and water. They generate noise, glare, heat, and they're just not suitable in our area. They can also trigger massive, quote, irreversible 76% electric price spikes to customers. Data centers are skewing the power supply market, resulting in higher prices for everyone. And this is from an article that has just read this morning's current article. As has been mentioned, PG&E already has a problem with our power grid. We get power outages every once in a while for no discernible reason. Sometimes it's power lines jumping in front of the cars, but sometimes it's just who knows why. But we don't need any more strains on our power grids. Um, so we do support and express prohibition of data center usage in the zoning code as it is from what I understand by the planning director. The zoning code is ambiguous about data centers and it's somewhat subject to interpretation of what usage that would be. That would be authorized with possibly without need of a use permit. Planning could be pressured by Microsoft or somebody coming here and wanting to spend $20 million on one. And they say, oh, no, we see this partner zone encoded. That's a use that could happen by right with no sequel review. And some of you might remember when the asphalt plant was proposed in 2015. That was also not spelled out correctly in the zoning code and the planning director was pressured to make a decision and the planning director said, well, okay, I think this is an author administrative use that I can just check off. Well, that didn't go over well with the locals and they filed lawsuits and there was a public hearings and appeals and petitions for over a year. And eventually the board of supervisors voted against the. Asphalt plant, and it was never built here, but that. Happened because the zoning code was vague on the subject. So I encourage you to avoid another asphalt plant mass. And. pass an urgency ordinance banning this until further analysis can be done to address what use or not this should be in the code. Thank you for your time. Any questions?

Thank you, Colleen. We'll address everyone after public comments. Thank you. Thank you. Any further public comment in the room?

Anybody online, Ms. Simpson?

Yes, we have two.

Okay.

Fran, go ahead. Thank you so much. And thank you to the board for being proactive and adding this important topic of AI data centers in Calaveras County to the agenda today. As a landowner and a homeowner here, this topic is very important to me, my family and my neighbors. It's a huge discussion, as you know, happening all over the country right now. And a lot of rural counties like ours are putting a pause on it to do the much needed research on the impacts. Gilroy, California. The residents of the garlic capital of the world didn't get that choice. There was a lack of public notice and it was a huge surprise to residents that a massive data center was approved to be built there. At that point, it was too late to start an initial conversation about it. Construction had started. They're currently protesting this. Spokane, Washington, weeks after their city council approved a one-year moratorium in late June this year to pause AI data center building to provide time to research the impact, several wildfires suddenly started in the city. One of them manmade, we don't know about the others yet. Historically, it's unusual, very unusual for wildfires to start in that city naturally. Strangely, to date, a total of about 10,300 plus acres have burned there, just like the number of acres burned here in these recent horrible fires. As the planning director said earlier, AI dentists can use a huge amount of resources such as electricity, water, and acreage being cleared. They produce loud constant humming noises and they affect local wildlife as well. Residents in some counties here, some counties have even documented brown water coming out of their faucets after data center was built near their community. Think about that. I love having clean water. I love the quiet of country life and I love our wildlife. Speaking of clean water, Erin Brockovich is researching this new trend of AI data centers being built and the issues surrounding it. So please do an online search if you choose for Erin Brockovich data centers. She also provides maps that show you where they are now, where they're planned to be built, and who said no. It's a great, reliable resource. City councils and supervisors all across this country have been voting and saying yes to putting pauses or bans on AI data centers being built in their county so they can study the impact it will have on their citizens, their land, and their wildlife. It's a wise choice. We should do the same. From my research, the impact of AI identisators is mostly negative. I don't believe everything I read on the internet. You have to look at all the sides. There's one being built too close to home right now in Amador County, a few miles away, and I own. We don't need one here. They build them near or between bodies of water in rural areas and we have plenty, have lots of lakes here. I urge you the board to say aye today to put forward an urgent ordinance temporarily preventing the establishment of data centers as a land use in our county pending further study. Even better, ban them permanently or let us be one of the smart counties in the US putting a pause on it. I believe that after doing the research, you'll find that AI data centers in our town would have a negative impact on the community. Do a pros and cons list. Are there any pros? Research and a pause is needed. The country is no place for an AI data center. Thank you. Thank you, Fran.

Thank you.

We have one more online. Terry.

Good afternoon, board. This is Terry McBride again, District 2. I am adamantly against allowing a data center into this county. And again, you have to ask yourself, what exactly positive will it bring to our county? I don't believe it's going to bring anything positive at all. And you have the power to simply say thank you, but no thank you. We have too many other things we can bring into this county that will uplift our citizens that will help improve lives and that sort of a thing but this has absolutely no good track record and i have yet to hear anybody go oh yay let's bring that in so i'm really hoping that you'll make the right choice on this and um and do a pause is a great idea or simply deny it until something better comes along got enough on our plate i would simply deny it and remember that in the end it's what's best for the citizens of this county thank you so much thank you terry anything further online we have no further online public comment

I didn't hear many questions so much as statements and they were pretty much all statements. The fact towards the same end is as has been stated before. So, I don't think there's much to address there. As answering questions as we were. Told what people feel and what the impacts were. So, with that, I'll bring it back to the board and Brett. they're going to be talking to you and everyone, so you're going to be part of this conversation. I think it was... I wasn't going to let you off the hook that easy. I thought you were letting me off the hook.

But this, I mean, I...

Just to say, I hear I hear the same thing repeatedly, you know, and when you hear something repeatedly the same. I generally start to take it as fact for the most part.

So we'll go down. How about we go down the road? Each person you can ask questions. And then tell Brett, you know, and at the same time. To for this process, if it's all right, by everybody telling them, whether you're for the ordinance or not going down the line, are you okay with that system?

Okay. Thank you. I'll just start off by saying that I, I want to see this happen. Um, you know, the flurry of, of, uh, outpouring from the community. Um, the only positive, uh, email, I think that we received, or that I saw at least was regarding local contractors and local contractors aren't involved in these types of things. They bring in global people to to install these things. So, I mean, enough said it's been a long meeting. I'll just say I'm for pushing forward.

Um, yes, I am in favor of pushing forward on this and I also won't repeat what all of our community members said today. I hear you. I see the same. I've been following this and researching it. Um, you know, and the bottom line is. Calaveras County, our economic and our cultural identity is based on agriculture, tourism, recreation, small business and, you know, that's what we as a county and. Jennifer Daneil, US the planning department need to focus on you know, bringing in our revenue and using our land and not according fashion, so you know just not a good fit. Jennifer Daneil, I think this urgency ordinance is great it gives us time to really dig in study the impacts and put those safeguards in place in our zoning.

I support it. I have a couple questions. I don't know if it's more for county council. What is the duration of the moratorium can we legally do? Can we do one year? Can we start with one year, two years? And I ask that question because I know we have a lot of things in the planning department. um priority list and if everything's a priority nothing gets done so i want to make sure that um we're conscious of like the timeline so your staff can do um an adequate analysis and bring it back to the board with all the other pressing issues you've got going on

Supervisor Polandar, Julie Moslewicz, Assistant County Council. I think it would be relatively quick. I don't want to speak for Brett to just bring forward a temporary urgency ordinance. I do not believe any CEQA would be required. We're preventing a land use plus urgency ordinances I believe are exempt. You're not allowed to just do a full-blown permanent ordinance under state law without coming back with a little bit more analysis and doing the full-blown notice and taking it to the planning commission, but I don't see a reason why we couldn't relatively quickly put a moratorium in place pending further study. There's certainly enough findings here regarding health, safety, and welfare to support the urgency ordinance.

And to the remainder of your question, the initially an urgency ordinance is what, 45 days to start? 45, I believe. And then the board can come and extend it for an additional... Up to two years. So yeah, all together with all the various extensions, about two years. And so that would be the timeframe for a potential permanent ordinance to come in.

And that would be a good timeframe per plan.

The other thing I want... There's so many terminologies and it gets used interchangeably. I think for the purpose of this is AI data centers, I want to ensure that this does not cripple IT infrastructure that maybe the county needs to depend on or the hospital needs to depend on. So I want to make sure when you're coming back, there's an explanation of what, you know, the bigger concern of these mega data centers versus, you know, we do have infrastructure, IT needs, and that's going to grow with time. And so how do we differentiate the difference between that? to what we're trying to approach today. And I know IT will probably be involved in it, but I just want to make sure that that's clear now while you're working on it as well. Other than that, I fully support it. Go for it.

Yeah, no, we'll be very careful with the definition of what we move forward with.

Definitely, I'm all in favor to get this back to us as soon as you can for our approval. And then once that's done, I'm all in favor of bringing something back as soon as you can permanently. It says this may take 2 years, but during that time. Bring something permanent here that we can depend on. So it's out there and they don't they know it's permanent. They can't come here. Right? Okay.

John Pimentel, um i'll start out with i'm in favor of moving forward with this i'm coming back to the urgency ordinance and then us read upping it in 45 days for two years with if a majority of the book for votes that way. John Pimentel, And I do want to say as a person that's. John Pimentel, Pro growth. But I think we have, being cognizant of where we live, so a pro-control growth, this does not fit our landscape. Um, and everyone said it very well, the energy. Issues and costs to everyone is relevant and very true much less. We don't have the infrastructure to support such energy issues in our area and would be at the behest of possible more wildfires. Uh, and the water issue is. Infrastructure, and we don't have a structure in place to provide said water. And if we do have infrastructure and set place, then it's the other noise and site issues that are next to communities that are already there that. You know, I don't know if there's a mitigation for that either. So, everything that's been said today, when it comes to those issues is very makes sense to me. And I think that at this time that it's not going to fit our county with the type of things we can use that water for agriculture or other things in the future. Although we do have a abundance of water rights still in Calvert's county. Those rights should be used to what is best our role standards. So I'm in support of it also moving forward.

I would like to make just 1 comment as listening to public comment. That's why it's so important to listen to public comment where your planning directors. Fully focused on the environmental impacts and the planning impacts and all of that and you did hear someone say. Don't leave these types of decisions up to 1 person. My decisions can be appealed per my code decisions, but let's say I were to make some crazy interpretation. In these cases, it's always best to let the decision makers direct or steer the boat and not allow an employee to make a compartmentalized decision that has ramifications, you know, for years. So I just wanted to public comment.

You know, and we know, I think what the public comment was, was a very real issue that we went through in the past. Um, and that that, uh. I think I think as a board, we have been cognizant of that moving forward and I think we are very openness to stuff. Open to what the public has to say when it comes to these issues and we're cognizant of what happened in the past. Luckily, at that time, they made the decision and they had appealed. The decision and brought it forward to the supervisors before I became a planning commissioner. Luckily, you all have that.

So I didn't really have a piece of that important to note that my my decisions are a little bit. So.

pleasure working with these ladies no matter even we disagree on some issues they've uh they they really got the best of the community in hand so you've done very well by bringing it forward to us and we appreciate that you're being cognizant of what the community wants and what's best for the community brett you did well thank you So I think we have our decision here. All five say yes to so far. We haven't voted yes on the urgency ordinance until it comes forward to us. So right now, it looks like it's coming forward to us. We'll go do our homework. All right. Thank you. It's on like Donkey Kong.

All right. So we're on to our next item, spacing number 16. Yes.

Okay. Item 16 action item human resources increase the employee health flexible spending account annual contribution limit from $2,500 to the IRS maximum of $3,400 for the 2027 plan year. Good afternoon.

Chair, members of the Board, Judy Hawkins, Human Resources, and Risk Director. And so what I'm bringing before you today is asking for an increase for our flexible spending account, but I also want to share some reasons why we think it's very necessary right now. And so as we are finalizing all of our renewals, our benefit renewals, some things that are coming up for the calendar year 2027 is our healthcare will be dropping GLP-1s. GLP-1s are very expensive on our health plan. So, for example, to get Ozempic or ZepBound, when the cost at the pharmacy for our insurance is $1,200 to $1,400. For somebody to go directly to Eli Lilly, it is anywhere from $299 to $499 a month. And so there's a very big difference because between the manufacturer and the pharmacy, everybody wants to get paid. And so we have right now, last year, we changed the plan where you had to be on a very specific program to help you lose a weight using food as medicine, as well as the medication. We do have 17 people on the medication. We will be working with then we don't have a list of who's on it we don't get that information but our insurance carrier will be working with those people and bringing communications out to help them find other ways if they are wanting to stay on their medication and so The flexible spending plan is one of the ways. They can use their flexible spending plan to help budget the cost through the year. And then also it is pre-tax. And so they're saving on the tax dollars. And besides losing our JLP1s, we also have seen an issue with dental plans in the county. But it's not just us. A lot of dentists are dropping their networks, period. We have looked at trying to go on other networks. and there is even less dentists available. And so what happens is dentists are finding by dropping the networks, people still need the dental care. They're still getting the patients, but it's a different process. So then it has to be processed as out of networks. Some dentists will work with our insurance, some will make you pay upfront, and then you get reimbursed by Delta Dental. And so those costs, you can also use your flexible spending plan for while you're getting reimbursed. and so with all the different changes a positive change is we will have a we are adding a buy-up plan to our dental plan so employees can choose to participate in the buy-up plan and it'll cover orthodontics and so orthodontics flexible spending plan will help with those payments and it's pre-tax. I think I calculated over the time my daughter was in braces twice, we saved a good thousand dollars during that process just on the taxes. And I was in Oklahoma then, taxes were a lot less. So it is a great benefit and also we've got other things coming up in the future. And we do have an employee who's on Prism's benefit committee. So Nick was just at their committee meeting last week. I did forget to tell you one of the most important things. So when we talk about dropping the GOP ones, without dropping GOP ones, our renewal would have been 21.5%. With dropping the GOP ones, our renewal is 16.2%. Just that 16.2% over a calendar year is $900,000 for the county. And so we will be seeing, and so half of that for the fiscal year 26-27. So we will be, the county will be seeing at least a $450,000 increase in benefits. So those are things to also kind of keep in mind.

That's the cost, $450,000 increase in benefits and cost.

Yes.

Yes.

For the fiscal year. Understood. And that's the county picking up 80% of that increase. But Nick has some positive information that the committee is looking at for future years that will hopefully help boost our plan. And so following you.

Good afternoon board. So, yes, Nick Marvin with human resources as Judy was saying, I am on the prison health committee that covers our insurance pool. Some of the things that we are looking at doing in the future to help kind of cut these costs down a little bit. These changes right here wouldn't be implemented in 2027. they are looking to implement them January of 2028. Because they do have to bring them back to that committee to approve and then we have to do it within the next year. So, some of the things they are looking at is claim payment integrity services. That would be them as people are making those medical claims, paying those claims. They would be going back and doing audits of each program, making sure that they are actually paying what they are supposed to be paying. We have seen that in the past where employees have paid their medical bill. Then went back and disputed it and just because they went back and disputed it actually cut down by about a grand. So save that employee a grand. This would automatically do that instead of the employee noticing it and then bringing it up. So that would save it right there. Another thing they're trying to do is through our other program, Karam Health. They're trying to add bariatric hip knee replacements and spinal fusion to that program. It would pull it out of our medical program. So it would save about 4.2 million dollars per year. Through that program alone, so cutting the cost down there, they are also looking at this 1. they don't think we'll do too much, but dependent dependent eligibility verification. They've noticed not so much with us, but with other agencies. Where they are leaving family members that should no longer be eligible for benefits on their programs. And so they are still covering claims for those dependents when we should not be. But, like I said, that won't affect us too much. Something else they're trying to do is adding Sutter Health to our program. Right now we use Anthem and then select individuals can use Kaiser. We would be adding Sutter Health to that program. But, like I said, this is something they want to do. They have to negotiate that with Sutter Health to be able to offer that to our employees. They are looking at specialty medication management. As Judy was talking about with GLP-1s, there are other medications out there that are upping the cost. GLP-1 is just the main one. That one took up about 79% of the pharmacy cost. And so dropping that helped significantly there. But they are looking at other medications where they can not just drop it completely, but pull it from there and put it into a management system to keep it separate from our pharmacy cost, which would down that significantly as well. They are looking at adding Regenexx. This is mainly for like sheriff's office, IWM, road workers, those types of employees. They're out in the field more often. This is a program that would provide non-surgical musculoskeletal treatment options to those employees instead of them being out for months on end due to surgery. This would keep them or bring them back a lot sooner and it would provide more virtual care checkups in between to allow them back to work sooner. They are also trying to add women's health and family planning as an option. So it would be continuing the programs we already have through our medical care, but adding the women's health program to that and family, as I said, family building. One other big one they are trying to do, they were given permission to go forward and look at it. It would be coming back with a managed care PPO evaluation. That would be them creating our own medical plan to offer. Right now, our core plan is the cheapest plan we can offer to employees. legally required to have them. This plan would be they are going to go back and look and try and build a whole new plan that is significantly cheaper than that, but it would be the bare minimum of services provided to those employees. And the way they would be able to get away with doing that is by cutting some of those services on there, but making them virtual care instead of having a specific doctor here in the area, you would have access to that virtual doctor and it would cut the cost. Significantly, as I said, and it would be a lot cheaper, almost half the cost of what our core plan currently is. And with that, I'll turn it back over to Judy.

So we just want to make sure that you know that we are working very hard on improving our benefit plan. We are part of a GPA GPA since we're a smaller County and then that we have more power. But one of the things to remember the way that they evaluate our increases every year is the utilization. Right now the pool utilization. So what people pay into the plan and then what's paid out of the plan. So prison pool. is 85%. We are at 98.6% is what has been paid out. And so that's why we're on the higher end of the increases. And so we're working hard to try and create So create, you know, bring more plans, ideas, things like that. So we're consistently working on it. And then, like I said, to help with some of these changes with the GOP ones, with the dental issues, upping our flexible spending would be fantastic. There's very little risk for the county because flexible spending is a use it or lose it. And so employees, you know, we encourage them to be very careful on plan what you're going to use. And then at the end of the year, if they have something left in the plan, they can roll over up to $500 and the rest comes back to the county. The county keeps it in a special account. And then if there's a year where people used all of their um money and then left where the county was left on the hook for that if we had to pay in we do have that money there so that uh will go to public comment and providing that nobody's getting up inside here i will ask for online

We have no online public comment.

All right. Do you have any questions, Mr. Huberty? Ms. Handel?

No questions. Just thank you for looking and getting creative and seeing what you can do. I think the flex saving plan is great. The orthodontist is incredibly expensive. Like you said, the dentists are dropping people. There's a lot of uses for it in that pre-tax. So thank you for looking at it.

Ms. Fulndorn?

No question.

I have no questions.

I've used flexible spending in the past. You did bring up the one point where there is, but you have it covered already with someone's, you know, opts for the maximum amount and then they give you that amount at the very beginning of the year and you pay into it for the rest of the year out of your check. And if they leave early that year and spend all the money, that's where we have to worry about it. But, you know, once it's in the process, which we've already had it in the process, so there's already a small pool there, correct? We're just upping the maximum.

Yes.

Yes. So at this point, it should be all the employees cost. Their benefit is that money is tax exempt at that point, and then they use it towards medical issues.

Yes. And with those dollars being tax exempt, it also helps the county.

Right. Yes. Yes. I think it helps us all the way around. You know, that's one of the both sides benefit.

With that, I'm in favor of it. John Pimentel, A so i'll ask the rest of the board if they would like to make a motion, I would like to move the item. John Pimentel, Okay, a motion by supervisor poverty. John Pimentel, i'll say a second by supervisor top finale all those in favor.

John Pimentel, I those opposed passes on five of the vote of the board Thank you very much, Miss hawkins.

Thank you.

John Pimentel, All right.

Oh, Stacy, we got number 18. Taxis.

Water out of rocks. Item 18, action item building. One, introduce and waive first reading of an uncodified ordinance adjusting the cannabis cultivation tax rate from 40% of the voter approved rate and 50% of the voter approved rate as authorized by the county code section 3.56.070 through December 31, 2030. And two, authorized summary publication requires a four-fifth vote.

Thank you. Afternoon, Chair.

Mr. Oliver. Members of the Board, Doug Oliver, Chief Building Official. I'm here specifically to address the work you gave me while I was on vacation. Serves me right for taking a board week off, but I would never accuse you of giving me work, so I accuse councils.

I was going to give you a heads up beforehand, but you never returned my phone call.

Well, I was quite a voice away. Yeah, I was delightfully tuned out. So as your board recalls, December 10th, 2024, your board approved an ordinance that temporarily reduced cannabis cultivation square footage tax rate by 60%. To the average outdoor cultivator, that's basically 40 cents on the dollar. This is a temporary 4th, 5th vote, and this is isn't the 1st time the board has done this. Since the price per pound dropped substantially a few years back, your board has asked us to bring this back. This particular ordinance in 2024 is unique because we set that out for 3 calendar years because of the market volatility. You're now asking to review increasing that or actually reducing the reduction. To 50%, making that essentially for the outdoor door 50 cents on the dollar. And before we got into the mechanics is, I just want to give you a snapshot of where the industry is. Based on the information I was able to acquire in the last week. Your board packet does identify that since 2023. The price per pound has been fairly stable at a rather low amount fluctuating between. 200 to 400 a pound now that that doesn't necessarily say 1 year to the next it varied. It means that during that market year, it fluctuates that way based on the. volume of product and the quality of that product throughout the year. So what we're seeing essentially is that there may be some temporary stabilization in the market. However, that price per pound is rather lower than in previous years. There have been some other changes in the landscape. Assembly Bill 564 was signed into law September 22, 2025, which halted the scheduled 25% tax increase and locked the state's cannabis excise tax at 15% until June of 2028. So there was some additional tax relief at the state level that was provided. Also, April 23rd, 2026, federal government reclassified state licensed medical marijuana and FDA approved cannabis products to a schedule three drug. Theoretically opening legal interstate market for medical cannabis. Now, I say theoretically, because it is still schedule 3 drugs. So there are. Regulations and licensing in place for those who wish to distribute. Schedule 3 drugs across. State lines, and that's a rather onerous task and. What we're anticipating is the local. Economy, we're not going to see many people who will qualify for that. What we're seeing is that much larger distributors. Are statewide are going to be. Working towards getting that I know. I don't know if anybody, maybe 1 person who is on track to get that county wide. So that's information that. At the local level, we're not going to see much of a bump on the interstate transportation. The. What you're seeing on the. The revenue side is also some rather flat. revenue. We're not seeing a lot of cultivation increases. We're not seeing any real modifications. It seems like the market is fairly comfortable where it's at currently. What this means to increase or reduce the reduction to 50% to the to the general fund would essentially be $747,000 and change by increasing or decreasing that reduction by 10%. What it actually means to the cultivator, assuming a permit to cultivate a full acre at $1 a square foot, if you're looking at the 100% collection, you're looking at $43,560. Okay, if at the 40% level we're at now, annually, make sure we're correct on this, 17,424 is where we're at annually, which equates to 4,356 a quarter. If we increase to 50, we're looking at an annual increase to that cultivator to 21,780, which equates to an increase of 4,000 Of 4,356, or. Essentially an extra $1,000 a quarter 1,089 a quarter that they would be paying. Assuming, of course, 1 acre of cultivation. There are, there is an offset. It's not a full offset, but there is some savings out there. And that is in the form of the fees that your board adopted. being drastically reduced. The annual continuation fee up until August 8th was $2,606. It is now 343. But wait, there's more. As your board is aware, I did send a memo out that because the fee structure has changed and the Cannabis Reserve Fund is now not going to be used for the collection and distribution of cannabis fees, The remaining balance in there is considered a surplus and according to direction from county council and pursuant to government code. The only use we have for that remaining balance in that fund is to credit or reduce the fees until that money is is used, which means that. Starting August 8th, there will be no charges to the cannabis growers in this program for any of the fees. continuations, alterations, transfers of ownership, any supplemental re-inspection or plan review fees, none of that will be charged until those funds are drawn down to zero. So there is a cost reduction to the cannabis industry and to any new applicants. correct but if you if i'm asking no no yeah there it is finite however if you're looking at the current cannabis fee for a continuation being 343 if you just counted that with the revenue we have in there it would take approximately 16 years to pay that down so it's going to be here a while Okay, so there's the significant savings over time. However, that doesn't specifically address the increase here. It's just, you know, it hopefully will take a little sting out of that.

Yeah. Well. Well, we put it in, correct?

That's essentially all I have to offer if there's any questions.

I think I think we'll stick with our regular thing. We'll go to comment.

And then we'll work from there. So is there a public comment?

Mr. Bolger? Oh, well, Mark Bolger, Rimrock Farms. I'm a firm believer in the first guy through the door usually gets shot. So here I am. First guy. Not in public comment, though.

Anyway. I was first a week ago or a couple weeks ago.

Am I going to get my six seconds back then?

Yes. You have your six seconds.

Thank you. So I want to start off by thanking the board. This board was very proactive in years past on issuing a reduction. I believe we were maybe the second in the state after Humboldt. When prices started plummeting, you guys took action, and it's why you have an industry today. It's why you're getting almost $3 million a year in taxes, because if we were at the proposed rate from the Measure G, I don't know if we'd still be here, so I think, you know. Looking historically Calaveras was in a sweet spot. We weren't the cheapest, but weren't the most expensive. That's not the case right now. Doug's report as always is pretty spot on. I will say, though, that Sonoma County did just reduce theirs to 0 as of May 19th. They had a board meeting where they reduced their tax to 0. so they're not at 69 cents. Monterrey is at 71 cents lakes at 50. Everyone else that I'm aware of, is it like a percentage of gross receipts, which is obviously based on their income, not on set canopy. So anyway, I would implore the board to think about the knife fight we're in right now. We're competing against well capitalized multi state operators that are pursuing. Schedule 3 licensure. These are small farms here. I think the reason we're not seeing a lot of that acreage in the rights to apply being exercised is because we're kind of spendy. And if we go from 80 cents up to a dollar, I don't think you're going to see any increase in canopy. So take that and set that to the side. The county budget discussions earlier were pretty sobering. I'd like to say, though, that something that was brought up was inflation's a huge thing and revenues are stagnant. We're in the same exact boat. Everything's costing us more, labor's up, fuel's up. I mean, our cost of production is substantially higher than it was a couple of years ago. So, what I'd like to propose is instead of trying to squeeze more money out of us now. Let us make more revenue to make the county more revenue. The ad hoc committee that Mr Oliver put together that we spent a lot of time on had some great recommendations. I think now the county should be looking at allowing farms companion license or accessory licenses of type 6 non volatile manufacturing. And some path towards direct to consumer sales, whether that be a micro business license or some other option. I know that's not what we're talking about today, but again, I don't think we need to bleed more out of the farms. I think we need to make businesses make more money to help more revenue for the county. Thank you.

Hi, Board. Sabrina Alexander, owner with Seaside Farm and Calaveras Gardens Play. I know pretty much every farmer here, they shop in my store. Us farmers cannot afford any more increases. We are barely making it. And you guys need to think about the trickle-down effect of all of this because it doesn't just affect us farmers. It affects every business. So not just my farm, my store alone. You guys made $136,762 of taxes just from my store last year. So if my farm goes out of business, my store will probably go out of business when the other farmers go out of business. And it's not just my store. You have to think about every other store in this county that we shop local at. And not just us. When you lose our business, you lose their employees' business because we can't afford it. And then you're going to lose all those taxes. You're going to lose between just my store and my taxes alone if I go out of business $311,000 a year just for me. And that's not you times that times all the other farmers that can't make it when you guys raise this. I agree with Mark. We need some other revenue here. And in fact, or not manufacturing. 5, 6, that's right. 5, 6, that's what we need. We need more jobs, not more taxes. Thank you.

Hello, Adam Hamilton, Peter Creek Farms, Columbia resident. Yeah, so I want to thank the board for the initial tax cut that's helped us survive, got us to where we are now. The 10% increase will definitely hurt us. And like Mark said, the cost to produce our product is way up because of inflation, labor, fuel. uh we're just trying to hang in there you know and also like tina said we shop around bring a lot of our employees shop locally shop at local grocery stores centers so it's just yeah it's going to hurt us if we you up it by 10 so i hope you consider that that thank you colin

just uh i'm calling from murphy's ridge final touch wellness um if you guys raise taxes right now it's gonna affect the whole industry in this county straight up um right now i have 18 employees from this county that work for me my payroll is almost 27 000 sometimes per pay period to locals so you guys are gonna raise our taxes which is gonna threaten our business our industry And you guys have no other way to get revenue from our industry because it's been shut down. You only provide cultivation, distribution, and retail, and there's only one guy, one group of guys that have retail in this county. So what I suggest is we go to ad hoc, like Mark said right here, and we go try to develop some new ways to make some money in this county to help you guys make money. instead of taxing us, bring more growth here. But I mean, that's all I can say to you guys right now. So hopefully this vote goes well.

Paul, you're up.

For the public comment. Jennifer.

I wasn't going to speak, but I started doing some math and cultivators in this room represent close to 45% of the acreage that's permitted right now. And so you are hearing from a large majority, a large number of stakeholders in this county. And I think the message is clear. Mr. Stopper started the meeting with let's get water from stone. We don't have it. We took an eight and 92% price increase decrease in 2021 and our inputs haven't gone down our Labor hasn't gone down. we're doing we were here we're still here we're fighting to be here, we want to be here, we love calaveras county but. Given the potential of a tax increase the best thing to do would be let the county make more money by opening different licensure for us that's what we're here to ask for thanks.

i respectfully request like the five seconds i have i'll give you your six seconds okay six seconds so just one issue with doug's math sorry we did it at 20 cents a square foot increase per acre is actually eighty seven hundred and twelve dollars yeah because talk about ten well ten percent increase not ten cents increase yeah ten percent applies to twenty cents yeah so i'll slink out of here yeah yeah

Don Nottoli, Just I done the numbers, the final numbers come out about right on the 747 $1,000 I count, but there's something lost in between Doug it's okay. Don Nottoli, With that anything online.

Don Nottoli, That six seconds is gone forever, Mr only have staff online, so no online public comment.

Okay, so I did ask for this and I'll go down. I'm going to go down. Respectfully do things, but I'm going to, I'm going to go ahead and start this time if it's all right by the rest of the board.

Okay, I hear you and. When I first brought this up, I did say 10% and it was an arbitrary number, but I, and I had a pretty good idea that the market was stagnant. You know, um, there is the, uh, up and down for the year, depending on quantity and quality, definitely, especially coming up here, you're going to see your low prices going up here, if not already from the debt. Um, This pains me because, you know, all in all, looking back on things, it should be based off of gross receipts. Because there's years when people, you're getting taxed even if you don't produce. A fire could come through and unless Doug's filling mice or, you know, we do as a board exempt, do an exemption, you know, you could lose everything and still have to pay the tax. you know, it doesn't necessarily have to be a fire. But also at the same time, I have to be cognizant of the needs of the rest of the county. And at the same time, I have to be cognizant of the economics of it for the future. Because if I start gouging you guys to the point where you guys can't afford it, we're gonna lose your business, we're gonna lose that whole amount based on each grower falling off. So any increase does pain me, but I see the need of the county as a whole. And I'm personally willing to consider a 5% increase. For 4 years, but I would also like Doug to skip consider. Opening up more avenues legitimately. With the proper mitigations in place so that these people can continue to. have other ways to sell the product, to get their product used. So like, you know, we talked about type six here, you know, but this would be direction for the future, like bring something back for the future.

But I think right now for this whole purpose, right now I'm thinking about 5% for four years and the board can bring it back any time and change it within that time if they so decide.

So a 5% reduction to the reduction. That's what I'm looking at right now with economics and everything. But at the same time, I would like to give direction if the rest of the board does for the future, looking at possible direct to user sales and what that looks like. I mean, these are things that they brought up here that, you know, would add to the economics that the board in the future could decide on if you brought forward a change to the ordinance but that with that that's that's for the rest of the board to give direction on but right now five percent for four years doug that's what i'm looking at and i'll hand the next one to martin

Mr. Huberty. Chair. Sorry. I thank you for explaining that because ultimately I couldn't remember where the 10% came from to begin with. I put it on the board. And I don't think that's fair. I appeal to the people that we've just heard and knowing how difficult that is. I think I'd only be interested in going forward with 5% if we could actually make sure that there were avenues to explore new Revenue streams for this industry. I think that's where I am right now with it. I mean, um, yeah.

There's there's, um. Several options that were shared by the committee to your board. Um. Rather than go through them now, would you rather that I bring it back as an informational item to touch on the report items and see which of those you want us to explore? Because this is going to be. Work on not just the building departments part, but planning will have to. Work with us as well to to bring some of these forward. Should you wish them to be.

That's exactly the way it should be, in my opinion.

What is the time frame? How does this break down as far as going forward if we were to go forward with this?

We would bring this back in two weeks, and then from there it would be effective, I believe it was October. Let's see.

Tax tax ordinances are actually 1 of those weird ones that take effect immediately as opposed to right?

Well, how it's written and how the word is written. It takes effect October 1, I believe. To coincide with the quarter. That's right. Okay. In addition, I just want to get some clarification. You mentioned the. the option of exploring a different type of tax on gross receipts. Is your board interested in us?

That would have to go out for a little bit. It would be a book. That's work we're not putting in right now, Doug, unless the rest of the board asks you to. I didn't want to leave it on the table. No, I know. look we're asking for a lot right now and we've got a lot riding and i don't want to put county council will strangle me if i put that on her lap right now okay you know and we don't have the time to get on the on the ballot anyways right now so it's it's a new point on that i'm just saying if the world was perfect we'd already be doing it based off of gross receipts because that's the right way to tax people you know but you know the hindsight's 100, you know, 2020 that's beside the point, Doug.

I'm not asking you to. Maybe the rest of the board could ask you to do that, but I don't think they are willing to go down that with with our county council either.

I don't know.

Oh, obviously, if the board directs it, we would work on that. But you're correct that I believe a change of that nature would require a ballot measure.

A lot of capacity also.

Right. So I think this would go a long way to the community. Yeah, I guess I'm interested in hearing what the other supervisors have to say.

Yeah, absolutely.

Caroline Miller, I would agree, I think that it would speak volumes, I think it is also worthwhile to bring back what the committee. Caroline Miller, projected and you know see what we can do to help this section of our economy. Caroline Miller, To do more and to kind of close the loop on their production, I read a little bit about the non volatile I think that's something worth exploring. Caroline Miller, And you know, looking at what the impacts would be both on the county and on the producers, I think it's definitely worth looking at all those items.

At all.

I would like to see the options before I make a decision on addressing the tax. May. I can count to three. I want to explore that more before making a final decision on that. But if the majority of the board wants to go with the 5%, I support them. But I'd rather go down the route of investigating other options for revenue before we splash this. So I don't even know if that's an option to explore that and then bring it back again.

It's certainly an option. Just as a reminder, this is actually a fourth. We have to count to four on this one. It is a four-fifths for adjustments to the tax rate. Adjustments to the tax rate are a four-fifths pursuant to the ordinance.

Okay.

I'll listen to it.

You want to bring it back or you're going to put me in the fourth vote?

I'm putting it on you.

Putting it on me. Here's where I am. Right now, annually, we're getting every forecast about $3 million. We just went through a whole thing here with our budget and cutting and everything and trying to find how we're going to deal with our budget, especially in September. And I'm okay with bringing it back, the 5% back, but I'm also worried about doing something that's going to put these people out of business to when we lose that $3 million. And then we're going to be in a situation where we don't have that income coming in. So I don't know anything about this market, but I'm certainly where Amanda is on it. And I'm certainly interested. We can bring it back and look at it when you bring it back. I would like more information, like she said, because right now we're going through a really tough time. Not only in that business, but all businesses. And we're looking at reduction in our taxes. That's putting us in the situation we're at. And we don't know what the state is going to do, again, until we get to the state budget. So I'm fine with that, what the rest of the board wants to do. But again, I don't want to lose the $3 million that we have.

Carmen, could we do another motion of just leave it with an extension of the next four years, and then the separate part will be bring it back to look into other alternatives for them to bring in revenue?

Your board could decide to leave it at the same rate and extend the time period. Yes, that's something you can do.

You know, that is something we can do, Sarah, I believe, right?

We could just extend the current one to four years and put it zero, but then bring back, have a direction from Doug to bring forward more things for the industry. And then at that time, the board could decide whether they want to lead a water out of a rock.

I'm sorry.

Hey, you asked for this.

Would it be better if I proposed a motion? No.

Okay.

I want to make sure the council says yes first.

Yes, the board could, by a four-fifths vote, I think, extend the existing tax reduction for whatever length of time the board wanted to do that. Okay. That's obviously not what was proposed before you today. And then, yes, the board can obviously give direction to come back with a study session or whatever we want to call it to talk through different

Option I can I can do an informational item where we just go through the report that I provided to the board a year and a half ago and we can refresh on all the information and gain input as to what areas you want us to. To bring to you as as official changes.

I'd like to know more about Pat stone bears.

I can say that actually they haven't just gone up Bear Mountain down by Calaveras River, what I've seen. I've actually seen some of the bears actually have come that way. And they didn't look stone, they looked thirsty.

I think that I think the cleanest way and since it would be no change and we've got time obviously before. HAB-Juliette Boone, Q4 starts, so I think probably the cleanest way of doing that, if that is the majority or four of the board's decision would be to just not make a motion, obviously on this one today, and then we can bring back that for your extension at the existing rate. HAB-Juliette Boone, That the next meeting that's pretty simple.

HAB-Jacques Juilland, Next weekend well. HAB-Jacques Juilland, We just based off of what we have there, we can change the 10 to a zero.

We have a lot of time to bring back an extension of time. So we have until 2027 to- Yes, correct.

That's right.

If we can bring it to you next month, would that be, give us a little time to do some writing and learn about bears?

I mean- We should bring it back again.

I mean, I'll make a motion.

Yeah. So, is that what you needed the motion to bring it back and extend the client?

No, I don't think so. If the board does not want to adopt what was or introduce, you know, what was presented here today and then you would just no 1 would make a motion on today's. And then I think the board could just give direction to staff to bring back. An item that looks like whatever you want to look like. So, I guess it sounds like an extension of the existing. Reduction for another.

Yeah, just just an idea if we already have it here as a 1st reading. I know that's why they could vote.

Now, if it's just extend the time now, it's just now it's arguably different enough from what was introduced that really what was on the alternatives that they could do it.

I'll do a third rise. Why not?

Ultimately, if we don't approve the percentage, why couldn't we approve?

I know. It's not a significant change.

It's just a part of what the whole issue was.

Yeah. It's not arguable.

I'm reading the alternatives.

It says, take no action, leaving an existing 60% reduction in place through December 31st, 2027. that's that's the current that's correct so we do nothing today it would be at least through december 2027. gotcha right so you you have your recommendations and we have uh i mean

it could go either way it depends when we bring it back when were you suggesting we bring it back doug if we're voting on this i'd bring it back probably next board meeting and just get it get it on consent can i say sorry i don't mean it but on three it says the board may choose to change the duration of the proposed rate change by reducing or increasing the amount of time that the tax reduction is in effect.

Right.

So couldn't we go with that? Like, we're extending the time. Sure. You can do whatever you want.

We can.

I think that was the intention there was to say that this proposed change of the 10% could be done for a different amount of time from what was proposed. But if the board feels that it was sufficiently clear that that was an option, you could certainly take that action today. That's up to me.

I'll make the motion.

I'll move. To stick with the current reduction for the term of four years. Along with the acid Doug, bringing something back in the near future. And reconsideration after that.

Okay, so just to be clear, it would be the motion then is to. Introduce wave first reading and authorized summary publication of an unquantified ordinance extending the current 50% reduction for three years beyond what it is right now, because right now it goes through 2027. Was it 50% or 60%? I'm sorry, the existing 60% reduction.

I just want to make sure that's clear.

The existing 60% reduction for three years beyond when it's currently set to expire. So that would be through December 31 of 2030. Right.

Can we add to that then that the reason for doing this is also to find what other alternative resources we could bring in in that time period?

I think I don't know that that belongs as part of the, the ordinance, but I mean, I think the board's direction is pretty clear that for Mr. Oliver to see their work, not me. Yeah, no, it's on camera to bring back to agenda. It's sort of a study session, informational item to explore those things in the near future.

I think you made clear what my motion is. I'll entertain a second. I'll second. We have a second by Supervisor Hubbardy.

Can we have roll call vote, please?

Yes, sorry.

Calabrese, Fitt and Simpson.

We'll start with District 1.

Aye.

District 2? Aye. District 3?

Aye.

District 4? Aye. District 5?

Aye.

Passes on a 5-0 vote for the board.

Thank you, Chair, Board, Council. Thank you.

You just blew my doors off. I'm saying you don't want to lose the money.

I will send you my wish.

I'll pay for it later.

I'll pay for that later. You all did well today.

Let's get on to getting on. Okay.

Stacey, what do we have next?

Supervisor's announcements.

Thank you. Mr. Hubbardy, up there. I'm listening to your list.

I'm labeling it all. I'm really proud of all this stuff. So on the 29th, with Supervisor Fallendorf, I attended the Caliverse Community Foundation event in Ages Camp, which was amazing. And it's nice to see what the CCF is doing and how they're really sort of opening up and becoming much more of the Community on the 1st, I really wanted to give a shout out to Independence Hall flea market. You've never seen so much stuff in your entire life. 40 volunteers working very hard to raise money to replace the roof on the 4th. The behavioral health meeting was canceled due to the fire on the 5th epoch of its past properties owner council met and it's always a very, very positive. Meeting on the 6th area, 12 agency on aging on the 7th, these are 2 shout outs for the museum. The clampers came there were like, hundreds of them all in red. It was fantastic. And on the 8th habitat humanity came and. gave 26 volunteers uh for the day which was amazing at the museum i'd also like to give a shout out to lori dodge we did a cleanup at phoenix park phoenix park is incredibly clean compared to what it used to be so that's pretty awesome and then i'd also like to ask the board randy titus is a forest meadows resident but he also is a volunteer and does a lot of the watch duty Um, I've been talking to him and I asked him if it was possible that he could go down and just give a short informational presentation to them to the board on watch duty and how they do and work and what have you. And it's actually another person that would would actually do it. And I just wondered if it was interesting to you if we brought that forward and so much that fascinates me. Okay, thank you.

That's it.

On Saturday, August 1st, West Point Town Square had their street party fundraiser and great golf ball race. It's very successful. On Sunday, August 2nd, Railroad Flat Ballpark, well, actually the first, second, and third had their softball tournament fundraiser. Also very hot, but very successful. um on friday august 7th i attended the first five calaveras meeting and on saturday august 8th we had a grand opening of a new business in mountain ranch the fairly rooted grassroots collective always exciting to see new businesses happening in country um a spawn door

Likewise, I was also at that event with Martin at the Community Foundation. That was a great event. I also attended the town hall that was hosted by Tridam. Last week, COG and CTA was canceled due to the fire, so our next meeting won't be until September. I know I've asked the board the last couple meetings for some agenda items. I've been talking with community members for over the past year. I've been to town halls in the Copper area, and there's a subject that keeps getting brought up. And after vetting with staff before saying this right now, I would like the board to consider re-looking at Title 20. um and possible consideration to remove that from county ordinance due to the amount of feedback from the public especially at some of the town halls that i've hosted so if the board is open to that i would be greatly appreciative um if not i understand as well thank you wow with all that

I have nothing to report.

Thank you.

I just want to thank everybody and staff for today. It was a long day and you all did a wonderful job and it went as good as possible for my eyes. dealing with everything we've had to in the last few weeks.

So thank you for that. AC.

I'm sorry. Can I just. I'm not sure. Did we get direction then to. I just want to know and just and I think what what we discussed was not all of title 20 to be clear. It's chapter 2010.

Sorry. Yes. Yes. Chapter 2010.

Yes.

Not a title. Not all of we will still keep one in the subsection. Yes.

Yes. Yes. Yeah. I told you what all of a sudden I said, yes.

Or else we will all work on agendizing that with the board's consideration.

Okay. Thank you, Sarah. Is there anything you need?

No.

How about our illustrious officer administrative officer, executive officer?

Stacy I'm sorry I did want to follow up on Supervisor Huberty's question as far as the watch duty for them to be brought forward in the future yes or yes okay thank you I just wanted to I already told everyone where yes all right that's all I had thank you all right thank you thank you have a wonderful day you too