Will Code enforcement move from County Counsel? Investments in budget related to medical marijuana law discussed this morning at BOS meeting

The morning session of the Board of Supervisors, item H 1, from the County Administrative office has staff recommending:

That the Board of Supervisors receive and file a review of the current (FY 2015-16) and projected (FY 2016-17) budget years; direct the County Administrative Office (CAO) to prepare the FY 2016-17 budget based on the following parameters:

a. Set departmental allocations from the General Fund distributing 90 percent of the revenue growth to departments based on current year General Fund allocations; b. Accept and consider requests for additional General Fund appropriations  that demonstrate a potential to generate future savings in the General Fund; c. Refund $600,000 in excess fund balance in the Workers' Compensation fund (3523) to be distributed proportionately to the county funds' past contribution to this fund; d. Refund $300,000 based on excess fund balance in the Purchased Insurance Fund, to be distributed proportionately to the county funds' past contribution to this fund; e. Allocate the General Fund monies received as a result of the above approved recommendations c and d to the Liability Fund (3524) in the amount of $358,483 for FY 2016-17; allocate $532,926 in on-going Measure Z funding to the Department of Health and Human Services (DHHS) to increase rural child welfare/protection services, mental health and substance abuse treatment and public health services to protect and provide home-based services to the children and families; approve transferring Measure Z salary savings consistent with the Citizens' Advisory Committee's recommendations to 1100-197 Measure Z for North Coast Substance Abuse Council in the amount of $113,150 and to 1100-298 Public Works Measure Z in the amount of $230,000; roll $2 million in unspent Measure Z funds from FY 2015-16 to FY 2016-17 for recommended distribution by the Citizens' Advisory Committee for one-time expenditures; accept one-time proposals from current Measure Z recipients that support and enhance service sustainability for remaining unspent FY 2015-16 Measure Z funds; provide direction to staff with respect to which of the departmental reorganizations listed on page 11 of this report; approve the list of budget adjustments shown on Attachment 1 and authorize CAO staff to make any technical corrections necessary to effectuate the Board's direction (4/5 vote required); allocate a 1.0 FTE Agricultural/Weights and Measures Inspector (class 648, salary range 346) to budget unit 261 Agricultural Commissioner; approve the concept of a pilot medical marijuana track and trace program as described on page 16 and direct the Agricultural Commissioner to return with a proposal for the program; direct the Auditor-Controller to transfer $800,000 in FY 2015-16 from the Tax Loss Reserve Fund to the General Fund; and provide additional direction to staff as appropriate.

Interim CAO Cheryl Dillingham told the Supervisors before staff presentation that the mid year budget report was broken into the following main components: "where we are in the mid year 2016-17", future revenue and expenditure 2016-17, Measure Z, Reorganization of Departments and Medical Marijuana law investments.

Deputy CAO Amy Nielsen gave the staff report.  Some of the highlights include moving Code enforcement from County Counsel to a new department which would consist of Environmental Health, Planning and Building, and most Public Works functions.

Investments in Medical Marijuana Law include allocating a new position in the Agricultural Department; participate in a pilot program of track and trace; contract for assistance for an excise tax and contract for environmental impact report study on grow impacts.

There is also one time two million dollars available from Measure Z funds since certain positions were not hired right away.


Supervisors are questioning Ms. Dillingham and Ms. Nielsen now. Supervisor Estelle Fennell said she wanted "robust discussion" on teorganization and where Measure Z funds should be allocated. Supervisor Ryan Sundberg suggested a small ad hoc committee to further flush out and focus and come back in the future because Supervisors had a lot of questions and it was not neccessary to make a decision today. Supervisor Virginia Bass was also in favor of this suggestion.


DHHS got $532,926 to increase child welfare/protection services, particularly substance abuse and mental health services in rural areas. Public Works got an additional $770,000 to repair roads.  Rest will go back to Citizen's Advisory Committee for 2016-17.

Medical Marijuana pilot tracking program participants will come from those registered, licensed growers in "good standing," said  Agricultural Commissioner Jeff Dolf. That concept was passed.


County Counsel Jeffrey Blanck said state is planning to have their own track and trace program which will supercede any local programs in place.

Mr. Dolf said Colorado's tracking program would not work in California which already has an existing cannabis industry. SICPA, a company that has approached Humboldt County wants to tailor their program to California. Wonderland's Luke Bruner  said Colorado and Washington software would not work in California because cannabis produced in the state is "90 to 100" times more.

Reorganization of departments is being discussed. Today, staff will be given direction by the Board to bring back more information on each item for future discussion. No changes will be made today.

Some of these reccomendations are placing major public information and legislative functions of DHHS under the CAO; Restructure the Aviation Department to enhance the focus on airports as an economic development and ask voters to combine the elected offices of Auditor-Controller and Treasurer-Tax Collector into a new Finance Department; remove Revenue Recovery from the CAO and place it into Finance.

Feb 6, 2016

Supervisors looking at long term and short term solutions to concern about negative balance in the Aviation Fund

There is a lot of positive in the mid year report to be discussed this Tuesday during the Board of Supervisors meeting. One item, however, caught the eye of a regular reader.

Here is the link to the agenda:

https://humboldt.legistar.com/MeetingDetail.aspx?ID=456442&GUID=354E375A-DB08-4993-9162-E573BD3CA646&Options=info&Search


The item that this reader was concerned about:

3530 - Aviation Enterprise Fund The Aviation Enterprise Fund began this fiscal year with a negative fund balance of ($674,128). It should be noted that the fund received a $500,000 loan from Motor Pool in the current fiscal year to assist with cash flow. This loan will contribute the negative fund balance resulting in a negative balance of $1.2 million at the end of FY 2015-16. The department now estimates that the negative fund balance may be even larger due to decreased federal reimbursement for security services from the Transportation Security Administration and unanticipated employee related expenses. Based on the 5 Year Financial Forecast that was before your Board on February 2 the Aviation Fund has an ongoing annual structural deficit of over $500,000. The continued negative cash balance and structural deficit in the Aviation Enterprise Fund raises concern. This is because enterprise funds are classified by accounting standards as "business-type activities" and are supposed to stand on their own without the sort of short-term borrowing typical of the county's governmental funds. Aviation needs to increase revenues or reduce expenditures to eliminate the structural deficit. If this is not accomplished over the next year the deficit will continue to increase and repayment of the loan will become challenging. This growing liability could have the potential to become the responsibility of the General Fund. The county remains committed to maintaining a regional airport that offers commercial air service and will continue to look for solutions to ensure Aviation's long term sustainability.

I contacted and was able to reach Supervisors Virginia Bass and Ryan Sundberg. They gave some initial comments over the weekend."We will be looking at how we might be able to do things differently as far as re-organization," said Supervisor Bass. "

"It is a much more complex discussion then move X or Y or do x or y."

"In the best of all worlds we could make aviation a separate department or division but given the constraints that we are facing we need to deal with reality and make improvements where we can," said Supervisor Bass.

"This is actually an opportunity for us to excel at reorganization and making sure that we maximize our highest potential. There are no easy answers but the fact that we are addressing our shortcomings is indicative of the proactive agency that we are."

Supervisor Ryan Sundberg said that both, he and Supervisor Bass have been working on short term and long term solutions.

I thank this reader for this tip. I would also encourage this reader and others to provide feedback and suggestions to all Supervisors at the next meeting.