Meeting Time: June 21, 2022 at 9:00am PDT

Agenda Item

6a) Discussion and Possible Action Including Direction to Staff Regarding a Potential Sales Tax for Submission to the Voters (Sponsors: County Counsel and Executive Office)

   Oppose     Neutral     Support    
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    Mary Heister over 2 years ago

    I would like to know what the tax is used for.

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    Tony Orth over 2 years ago

    Giving the voters of Mendocino the right to decide to continue the current sales tax amount, but redirected to fund the two critical services of Fire/EMS first responders, and providers of raw and domestic water services is the decisive action todays Board of Supervisors should take. Building resiliency for two of our Mendocino County core public service's recognize that both water and fire declared emergency conditions are a new normal that needs both short and long term investments. Discussions with prior and ongoing BOS Fire Ad-Hoc committees over the last five years have included plans to seek the sunsetting measure "B" sales tax under discussion by the full Board of Supervisors today. The two Supervisors voicing concerns today have not served on these Fire Ad-Hoc's and have not participated in the Municipal Service Reviews prepared by the Mendocino County Local Agency Formation Commission that reviews both Mendocino County Fire and Water Districts and describes current conditions. If they had they would have a better picture and history to inform todays discussion. I have worked for decades on these service funding issues and today request majority support to bring this important sales tax measure forward for Mendocino County citizens to decide in this November's election, Tony Orth.

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    Janet Pauli over 2 years ago

    Comments by Janet Pauli in support of Agenda Item 6a...see attached comments

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    Karen Bowers over 2 years ago

    BOS Agenda item 6a)

    Public Safety is the primary responsibility of the Board of Supervisors. This includes responsibility for supporting fire services and water security.

    In the context of the County budget process, the Leadership Team of the Coast Democratic Club is in support of the BOS pursuing additional funds for the 22 County fire districts. The local volunteer fire districts in the unincorporated rural areas of our County are in need of support, especially at this time. Among other economic impacts of inflation, first responder volunteers are paying higher and higher gas prices to travel to a 911 call.

    We are in a climate emergency. We need fire and water security.

    Whether through the budget process or a general sales tax initiative for this November 2022 ballot that includes a clear advisory on equitable fire and water fund allocations to each Supervisor District, we call upon the Board to represent and address the needs of the people of this county when they need you to step up.

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    Maureen Mulheren admin over 2 years ago

    Revised letter sent by Supervisor Mulheren to the City Councils and Water Districts throughout the County as listed on the LAFCO website;
    For 6/21/22 BOS Agenda Discussion Item 6A

    Hello Community Member

    As you may have heard the Mendocino County Board of Supervisors is having a public debate about adding a sales tax measure to the November 2022 Ballot. I’d like to start off by giving a little background about why we are having this conversation. There were multiple groups looking at proposing a sales tax to solve problems in the particular areas of water and Fire Resources. This was brought to the attention of County Counsel and he recommended that we have the discussion in an open forum. Unfortunately out of the conversation on May 17th there seemed to be some assumptions and I hope that I am bringing forward an idea that can put some of those concerns to the side. Supervisor Haschak thought we needed to bring back specifics which I did at last weeks Board Meeting. It is true that the Potter Valley Project and that ag resource is an imminent water resource concern, its been known for some decades that its likely time to raise Coyote Dam in a way that Mendocino County can retain more of that water resource but I believe there are other water resource projects throughout the County include the need for improvements to the water system and storage in Mendocino, storage and desalination in Fort Bragg, storage and needed studies in the North County especially in Laytonville and Covelo, storage capacity and groundwater studies in Willits. There is truly a water resource need throughout the County, especially as we go in to year three of the drought. We know that we lack housing in Mendocino County, we can’t add additional housing without water. We know that since the devastating fires of 2017 Mendocino County has not had a year where wildfire didn't impact our County in some capacity. Our local fire departments are generally first on scene to a myriad of hazard types and provide year round protection to life, property and the environment. If there is a fire in Brooktrails we have Hopland and Redwood Valley Fire there, our Coast fire districts respond throughout the County. Our fire districts are severely underfunded and face ever growing mandates. In short as far as Fire Resources are concerned BBQ's and Bake Sales aren't going to cut it.

    The following is a rough draft for conversation. I have been asked by the Board to do outreach to stakeholders in our Cities and Districts. I met with the Fire Districts Board on June 15th, they adapted my original plan to the one I’ve outlined below. I am proud of the work that these departments did to negotiate and communicate their needs from our very smallest departments to our largest. The attached spread sheet provides some estimates for potential annual funding to each fire district.

    This proposal is for a 3/8 Sales Tax to replace the sunset portion of Measure B and provide critical funding for fire services and water resiliency projects.
    It is a proposed Countywide general sales tax measure with an accompanying resolution passed by the Board of Supervisors for oversight, distribution, and accountability measures.

    The following could be key elements of the policy resolution.

    Distribution: The 3/8 sales tax revenue would be distributed 60% for Fire Services and 40% for Water Resiliency Projects.
    Based on an estimated $7,000,000 annual revenue
    Method for the Distribution of Fire Protection Funds (Modeled after the 172 State Distribution for Fire) $4,200,000
    Funds for fire shall be distributed annually to all Fire agencies providing fire services in Mendocino County. Distribution shall be divided among agencies using the following formula: 40% of the funds for Fire Services shall be distributed equally as a base to each agency and 60% of the funds shall be distributed to each agency based on Prop 172 per capita distribution. This accounting shall be displayed within the County budget in a special line item that clearly articulates the income and expenses on an annual basis.

    Method for the Distribution of Water Resiliency Funds
    Based on an estimated $2,800,000 annual revenue
    A Water Technical Advisory Group (WTAG) shall be formed for the oversight of funds budgeted by the Board of Supervisors for water resiliency projects including planning and the development of capital improvement projects and a plan of proposed expenditures, strategically looking at least 5 years out at a time. This work plan should include projects from every area of the County on an annual basis. The WTAG shall be comprised of eight representatives, one from each of the four incorporated cities, one from the County of Mendocino, and two representatives from community services districts with latent water powers inland and on the coast, and one tribal member. Each of the organizations represented shall select its representative, and the representatives shall serve at the will and pleasure of the organization(s) they represent. Specific to the selection of representatives from the community services districts with latent water powers, representatives shall be nominated and selected by a majority vote process to serve a four-year term. Prior to the annual release of funds for water resiliency projects, WTAG approved expenditures shall be submitted for review and approval by the County of Mendocino Board of Supervisors annually at a public meeting.

    Accountability Resolution
    While the revenue received by the County from Measure __ Sales Tax is unrestricted general fund revenue, by this resolution, the County intends to use these revenues for fire services and water resiliency projects. The Measure __Sales Tax revenue would be distributed 60% for Fire Services and 40% for Water Resiliency Projects.

    A. Accounting. In each fiscal year commencing with the 2022- 2023 fiscal year, for purposes of accounting for the use of these revenues, the County Auditor-Treasurer-Tax Collector shall place the Measure __ Sales Tax revenue in separate designated accounts for Fire Services and Water Resiliency Projects within its budget and financial statements so that its use can be reviewed, audited and accounted for by the Board of Supervisors, Fire Districts, Water Resource Services and the public. These are to be tracked as additional funds and the existing funds should be maintained at their current level.

    B. Review. Every year after the Effective Date of this Resolution, the Measure __ revenues and expenditures will be reviewed by Board of Supervisors and will be available to review by the public through the County's budget document and website.

    C. Accounts. All Measure __ Sales Tax revenues and all interest on said revenues shall be credited to the designated funds or accounts and shall be designated for use in accordance with this resolution by the Auditor-Treasurer-Tax-Collector.

    Ballot Question:
    Shall Ordinance No. _________ be adopted to impose as a general tax and additional transaction (sales) and use tax of three-eighth percent within the County of Mendocino to fund essential County services, including Fire Service and Water Resources? Such tax increase is estimated to raise $7,000,000 annually at a rate of .375%. The duration of the tax will continue unless or until the tax is repealed by majority vote in a municipal election.

    The content of this letter and my original proposal to the Board has changed slightly due to fire department feedback. I’ve been able to gather more community feedback and hear concerns.

    Accountability:
    Regarding this being a general sales tax I agree and understand that we are holding accountable future Board of Supervisors in perpetuity to follow the will of the voters. I believe that with the member make up of the Water Technical Advisory Group and by combining Fire Services and Water Resources there will be for accountability. 22 Fire Agencies, over 20 Water Districts and the four incorporated Cities will be watching closely how this money is spent. The addition of the Auditor-Treasurer-Tax-Collector role in providing an accounting for the funds and their distribution also adds a level of accountability through that independently elected office.

    Equity:
    Thanks to the suggestion of Supervisor Haschak the Board Resolution will include a Tribal member representative. It’s imperative that we include our tribal partners in discussions that include our shared water resources. The four incorporated cities are our population centers and they will each be bringing a representative to the table to make sure that our water resources provide safe drinking water for the health and safety of all of our residents and neighborhoods within the cities. The Coastal and Inland Water Districts will also help insure equity of water resources coastal and inland along with the four incorporated cities with two being coastal and two being inland.

    What will it fund:
    Using the spreadsheet provided the estimated fire funding I've asked each Fire District to come up with identified uses for that annual funding. These needs may change overtime but I am certain each department will have different needs and has opportunities to share with their constituents how this annual funding can be resourced to better service their areas.
    Regarding Water a recent draft by GEI Consultants identified many water needs throughout our County, they include but are not limited to;
    Goal A: Water Resilience
    Long-term planning
    Effective Groundwater Management
    Long-term investment in water reliability
    Technical/Scientific Assistance to water systems for underserved communities
    Goal B: Comply with Regulatory Mandates
    Participation in the Ukiah Valley Basin Groundwater Sustainability Agency
    Comply with Countywide Stormwater (MS4) Permit
    Prepare for and respond to drought
    Goal C: Coordination, Cooperation and Advocacy
    Create a communication forum for water interests and include all water stakeholders
    Advocate County water interests with State and Federal Legislators and Agencies
    Support voluntary interconnections and consolidations to improve water security
    Establish Mutual Aid Agreements among water agencies
    Maintain and develop a clearinghouse for water data affecting the County
    Goal D: Outreach and education
    Conduct public outreach campaigns aligned with priority goals
    Develop communication tools such as a web-based portal of information and social media
    Lead and support water and drought education throughout the County
    Goal E: Funding and Financing
    Advocate, lead and prioritize studies and projects to position for grants
    Lead and coordinate grant applications and grant management
    Last year grants brought in $23 million in water resources County wide, this system works to leverage State and Federal dollars
    Areas of water resources that responded to the survey:
    Coastal Basin; Pudding Creek, Wages Creek, Navarro watershed, Noyo River, North Fork Gualala River, Big River, Gualala River, Jug Handle Creek, Jack Peters Creek, Surfwood Estates
    Countywide
    Russian River Basin
    Eel River Basin
    "Other" including Eel River and Countywide, North Coast Region and Statewide
    Some comments from respondents and potential projects:
    - Fort Bragg was impacted by the recent drought and could not serve the needs of the coastal area, including the Town of Mendocino as it had in the past. Fort Bragg had to cover its own water deficit and benefited from its visionary investment in desalination that helped to manage its own water shortage locally
    - During this recent drought, the City of Ukiah came to the aid of coastal area where a number of local businesses relied upon hauled water and at least 35 wells within the Town of Mendocino were reported going dry due to extreme drought conditions
    - Survey respondents commented that the area should have never found itself in the position described above and that it is critical that we prevent these circumstances from reoccurring. Knowing that climate change will undoubtedly put our water systems at greater risk, it is clear that we are not currently prepared to address both the short- and long- term challenges faced by our water systems. Constituents are concerned that the Mendocino County agriculture provides significant tax revenue and is at risk if Russian River water supplies are curtailed.
    - Climate resiliency: Lead in creating climate resiliency and safe and affordable water for drinking, farms , fire fighting and fish.
    - Conservation: Reinforce water conservation and on-site rainwater harvest in greywater systems
    - Education: Educate all beneficial users on better solutions for water management
    - Fisheries: Protect fisheries which are on life support in some parts of the County and improve habitat and ethical harvesting to support the Blue Economy on the Coast
    - Infrastructure: Invest in infrastructure water security
    Connectivity: Identify, prioritize, and invest in infrastructure to create better connectivity among small water systems to help with water reliability (e.g. Town of Covelo, small systems) Create a centralized water distribution system of intertie interior with City of Ukiah
    Emergency distribution: Create a distribution for firefighting
    Recycled Water: Expand recycled water beyond Ukiah
    - Potter Valley Project (PVP) Support: Support the Potter Valley Project (PVP) for the benefit of local, agriculture, the County and the General Fund. The PVP is the largest opportunity for future of the county’s water supply. It is paramount to the main mission and goal.
    - Planning: Create a long-term comprehensive water use and land use planning to meet County’s projected demands.
    - Prioritize Water Security: Restore the dignity of communities by prioritizing water security - is is our obligation.
    - Technical assistance: Develop the capability to provide technical assistance and conduct scientific studies; understand soil moisture and how we can better manage agricultural water resources through efficiency and technology
    - Water Quality Actions: develop ordinances, monitor, report and collaborate with enforcement (State Board) to reduce illegal surface diversions and groundwater extraction/pumping impacts that otherwise result in environmental, water quality, and water supply impacts
    - Monitoring: Prioritize tests for contaminants (such as arsenic in Round Valley) and monitor for constant ants that may be present int he increasing numbers of unregulated cannabis farms within the valley and watershed
    - Enforcement: Collaborate with the State Water Resources Control Board on water quality enforcement
    - Drought: Allocate resources for drought response
    - Bring back recreation to Lake Mendocino, we lose an estimated $16million per year in Sales Tax Revenue by not having the lake fully open to recreation
    - Planning & Technical Assistance; Leverage Fort Bragg template on small-scale desalination (Noyo River) and implement at Township of Mendocino, increase agricultural efficiency, explained SGMA beyond UVGSBA to other “at risk” basins, Potter Valley (two basin solutions)/Eel River Diversion/Scotts Dam Removal, Improve coastal water supply (system from Cleone to Albion), Obtain more storage (e.g., Raise Coyote Dam; On-site Residential), Create interview between systems, Water conversation/Drought Preparedness
    - Include Native American Tribes Stakeholders; include having representatives at higher/tech level, engage tribes in development of capacities of each of tribes
    - We lack a consistent and proactive outreach and education approach to drought conditions, conservation, the interdependence of our shared water resource, safe drinking water
    - Funding options outlined in the draft GEI report based on stakeholder assessment; State and Federal agencies, unite in a multi-jurisdictional approach, potential Grant Programs AB 200/Human Right to Water grants, Coastal Commission Resiliency grants, DAC Water Quality grants, DWR Multi-Benefit grant
    - Propose a Ballot Measure

    As you can see there are many water resource needs throughout our County. My strategic approach to this ballot measure will ensure that fire and water receive resources so that they can deliver the service that our residents have been calling for. Again this is a proposal for a majority vote 50%+1 vote for the 3/8 sunsetting portion of the Measure B funds, this will not raise taxes that our voters are already paying but reallocate those funds to fire and water resources. The attached Resolution and Plan will compel this Board and future Boards to spend the monies as the voters have willed with fire and water resources throughout the County including the four incorporated cities will add additional accountability to this measure.

    I am happy to answer any questions that you might have. I have been asked to adjust this plan and use a 1/4 cent for this measure. The simple answer is that is not enough money to spread amongst the fire and water agencies. This plan creates a foundation for fire and each fire district will be proposing their use of the allocation to their voters. This is not enough money to fund this very long list of water projects but it is enough to provide seed money to qualify for grants and other funding to accomplish our Countywide Water Goals. The plan works with 3/8 of a cent that is sunsetting and I think we should let the voters decide if they want to continue paying that tax and redirect the funds to water and fire resources. Look forward to a conversation about specific changes that can make this plan more effective for our residents.

    The Mo You Know
    Maureen Mulheren
    501 Low Gap Road
    Ukiah, CA 95482
    707-391-3664 cell
    MulherenM@MendocinoCounty.Org
    MaureenMulheren.Com