Jun 02, 2026 Board Meeting

[ CALL TO ORDER]

[00:00:03]

GOOD MORNING AND WELCOME TO THE JUNE 2ND, 2026 MEETING OF THE MERCED COUNTY BOARD OF SUPERVISORS. YOUR CLOSED

[CLOSED SESSION]

UNDER NEGOTIATION TO REQUEST AUTHORITY TO NEGOTIATE PROPOSED ACQUISITION OF PROPERTY AND VALUE. THE PUBLIC WILL BE PROVIDED AN OPPORTUNITY TO COMMENT ON ANY MATTER TO BE CONSIDERED IN CLOSED SESSION PRIOR TO THE BOARD ADJOURNING INTO THE CLOSED SESSION.

TESTIMONY IS LIMITED TO 3 MINUTES PER PERSON.

AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR CLOSED SESSION ITEMS. THE PUBLIC COMMENT PERIOD FOR CLOSED SESSION ITEMS IS NOW CLOSED. WE WILL NOW MOVE INTO CLOSED SESSION. GOOD

[10:00 A.M. REGULAR MEETING]

GOOD MORNING. PLEASE BOW YOUR HEADS AND HEARTS WITH ME THIS MORNING. DEAR GRACIOUS HEAVENLY FATHER, WE INVITE YOUR PRESENCE INTO THIS MEETING AND THANK YOU THAT YOU ARE EL ROI, THE GOD WHO SEES US. EVEN BEFORE WE ASK, YOU KNOW WHAT'S ON OUR HEARTS AND IN OUR MINDS. AND ALREADY HAVE THE ANSWER. TODAY I WANT TO THANK YOU FOR YOUR FAITHFULNESS AND FOR YOUR PLAN. THE BIBLE SAYS THAT IN HIS HEART A MAN PLANS HIS COURSE, BUT THE LORD DETERMINES HIS STEPS, AND ALSO THAT THE STEPS OF THE RIGHTEOUS ARE ORDERED BY THE LORD. TO ME, THAT MEANS THAT OUR POSITIONS ARE SECURE.

YOU HAVE ALREADY ESTABLISHED WHERE WE'RE ORDAINED TO GO, AND WE CAN WALK IN FAITH, NOT FEAR. YOU ALREADY KNOW THE OUTCOME. YOU HAVE A PLAN, AND WE CAN REST ASSURED THAT YOUR PLAN IS GOOD. SO WITH THAT IN MIND, I ASK YOU TO TOUCH THIS BOARD, OUR COUNCIL AND CEO. PLEASE GRANT THEM PEACE AND PROTECTION. YOUR WORD SAYS THAT WE CAN BE CONFIDENT OF THIS, THAT HE WHO BEGAN A GOOD WORK IN YOU WILL CARRY IT ON TO COMPLETION. SO AS EACH OF THEM WORKS TO DO WHAT YOU'VE ASKED OF THEM, I PRAY GRANT THEM THE CONFIDENCE TO MOVE FORWARD, TO ADVOCATE FOR THOSE IN THEIR CARE, AND TO GIVE THEM PEACE AS THEY DO THE GOOD WORK.

PLEASE BLESS THEIR COMING AND GOING, AND WHEN NEEDED, SPEAK TO THEIR HEARTS, CALM THEIR MINDS, AND PROVIDE FOR THEIR EVERY NEED. I ASK THAT YOU TOUCH EACH DECISION THAT IS TO BE MADE TODAY. MAY THEY BE PERFORMED WITH WISDOM, CARE, AND CAUTION TO BE SURE THAT ALL OUR CONSTITUENTS ARE PROVIDED FOR AND THAT THE IMPACT WILL BE TRANSFORMATIVE. PLEASE BLESS ALL OUR DEPARTMENT HEADS, STAFF, AND THOSE FACILITATING THIS MEETING. BLESS THE HANDS THAT PERFORM THE WORK. WE THANK YOU AGAIN FOR ALL THAT YOU'VE AFFORDED US, AND WE, WE GIVE YOU THIS DAY. HELP US TO WALK IN THE AUTHORITY YOU'VE GRANTED US. IN JESUS' PRECIOUS NAME WE PRAY. AMEN.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. IT IS NOW

[PUBLIC COMMENT]

TESTIMONY IS LIMITED TO 3 MINUTES PER PERSON AND 30 MINUTES TOTAL. AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT.

AGAIN, THIS IS FOR NON-AGENDA ITEMS. I'LL REMIND YOU, YOU ONLY GET 3 MINUTES. DO IT IN 2. GOOD MORNING, MR. CHAIR, SUPERVISORS, STAFF, MEMBERS OF THE PUBLIC, AND THE COMMUNITY. MY NAME IS JAMES MOORE. I'M THE DIRECTOR OF THE MERCED COUNTY REGIONAL WASTE MANAGEMENT AUTHORITY, AND I'M HERE THIS MORNING TO ASK FOR SOME HELP. WE ARE RE-ESTABLISHING OUR LOCAL INTEGRATED WASTE MANAGEMENT LOCAL TASK FORCE. THIS COMMITTEE HELPS US PROVIDE RECOMMENDATIONS FOR LONG-TERM SOLID WASTE AND RECYCLING FACILITIES WITHIN THE COUNTY.

UH, IT'S A STATE-REQUIRED COMMITTEE, AND 2026 IS THE YEAR THAT WE NEED TO UPDATE OUR STATE PLANS.

UH, IT IS ALSO TIMELY IN THAT OVER THE LAST 10 YEARS THERE HAVE BEEN A NUMBER OF MATERIAL STREAMS, LEGISLATED TO BE DIVERTED FROM OUR LANDFILLS, SUCH AS TIRES, MATTRESSES, BATTERIES, ORGANIC WASTE, AND NOW EVEN TEXTILES AND SINGLE-USE PLASTICS. SO THIS IS A VERY

[00:05:01]

IN PARTICULAR, WE ARE LOOKING FOR COMMUNITY INVOLVEMENT, THROUGH 4 CITIZEN COMMITTEE MEMBERS, 2 FROM WITHIN THE INCORPORATED CITIES OF THE COUNTY AND 2 FROM THE UNINCORPORATED AREAS.

SO I'VE LEFT A FEW INFORMATION PACKETS ON THE TABLE OUTSIDE IN THE ENTRYWAY. I'LL ALSO ADD SOME IN THE BASKET HERE. THEY CAN ALSO GO TO EITHER OF OUR WEBSITES, MCRWMA.ORG OR THE MCAG WEBSITE, AND WE HAVE INFORMATION POSTED THERE AS WELL. THANK YOU.

THANK YOU. PUBLIC COMMENT PERIOD IS NOW CLOSED FOR NON-AGENDA ITEMS. WE WILL

[ CONSENT CALENDAR]

CONSENT CALENDAR ITEMS 1 THROUGH 27. PLEASE NOTE THAT ITEMS 3 AND 15 REQUIRE A 4/5 VOTE. AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS 1 THROUGH 27. THE PUBLIC COMMENT PERIOD FOR CONSENT ITEMS 1 THROUGH, 27 IS NOW CLOSED.

WE'LL BRING IT BACK TO THE DAIS. IS THERE FURTHER CONVERSATION OR COMMENT ON ANY ITEMS? IF NOT, I'LL ENTERTAIN A MOTION. OH, CHAIR RECOGNIZES SUPERVISOR SILVEIRA. THANK YOU, MR., THANK YOU, MR. CHAIR. I THINK, OKAY, I KNOW I'M ON. UM, I JUST WANT TO HIGHLIGHT ITEM NUMBER 18, WHICH IS A BUDGET TRANSFER IN THE AMOUNT ROUGHLY OF $10,183.12 FOR THE PURCHASE OF A NEW COPIER PRINTER SCANNER IN WHY ONE WOULD THINK THIS IS IMPORTANT IS BECAUSE I THOUGHT IT WAS IMPORTANT ENOUGH THAT IT SAYS THE COPIER, WELL, BASICALLY, OUR BOTH OF OUR COPIERS THAT RESIDE ON THE THIRD FLOOR HERE THAT NOT ONLY BOARD MEMBERS USE BUT THE BOARD OF SUPERVISORS OFFICE, THE CEO'S OFFICE USES, WELL, IT WASN'T DOING SO GOOD.

AND, AND I KNOW THAT OUR TEAM, TRYING TO BE RESPECTFUL OF BUDGET YEARS, WAS GOING TO TRY TO WAIT UNTIL THE NEXT FISCAL YEAR TO GET THAT DONE. AND, AND I ASKED THEM TO BRING IT FORWARD BECAUSE IT IS THERE'S A COUPLE OF US, ONE OF THEM IS SPECIFICALLY FROM DISTRICT 2, WHO USES A LOT OF TREES TO BE ABLE TO SEE THESE AGENDA PACKETS.

SO I JUST WANTED TO MAKE SURE THAT THEY HAVE THE TOOLS THAT THEY NEED TO BE, SO THEY COULD BE SUCCESSFUL.

SO I'D APPRECIATE A YES VOTE ON THIS ITEM. THANK YOU, MR. CHAIR. THANK YOU. I DO HAVE A MOTION AND A SECOND. WE'LL GO AHEAD AND CALL FOR THE VOTE.

LET'S RECORD THE VOTE. MOTION PASSES. AT THIS TIME, I'D LIKE

[Additional Item]

AND THEY WERE VERY IMPRESSED BY HIS PRESENTATION, AND IT WAS ALL BECAUSE OF YOU GUYS. AND YOU GUYS BROUGHT STUFF TO MY MIND THAT I NEVER EVEN THOUGHT OF IN THE PROCESS, WHETHER THERE'S AN EMERGENCY THROUGH THE PROCESS, WHO GETS TO GO, WHO'S GOING TO MAKE THE DECISION. AND ALL THE DISCUSSIONS THAT ARE HAPPENING BACK HERE IF THEY EVER HAVE TO TAKE THE CHILD

[00:10:01]

AND IT WAS JUST IMPRESSIVE.

THEY WERE TOTALLY PREPARED, READY TO DO IT, SET ALL THE GUIDELINES AHEAD OF TIME. BUT ON BEHALF OF THE BOARD OF SUPERVISORS, I WANT TO THANK YOU GUYS. AND LIKE I SAID, THIS IS OUR BRAGGING RIGHTS.

WE BRAG ABOUT THIS, AND EVERY OTHER COUNTY IN THE STATE, WHICH IS, THEY HAD, HAD THIS AS WELL. UM, BUT I'D JUST LIKE TO READ THE, THE LAST PART NOW THEREFORE, BE IT RESOLVED, WE AT MERCED COUNTY BOARD OF SUPERVISORS DO HEREBY PROCLAIM JUNE 2026 TO BE ALL DADS MATTER MONTH IN MERCED COUNTY AND ENCOURAGE ALL RESIDENTS TO RECOGNIZE, UPLIFT, AND SUPPORT THE CRITICAL ROLE FATHERS AND FATHER FIGURES IN NURTURING STRONG FAMILIES AND THRIVING COMMUNITIES. THAT SAYS IT ALL RIGHT THERE. I THINK THE WORLD WOULD BE A BETTER PLACE IF DADS STEP UP AND BE WHO THEY'RE SUPPOSED TO BE. THANK YOU.

THANK YOU SO MUCH, CHAIRMAN MCDANIELS AND THE BOARD OF SUPERVISORS, ALL THE STAFF FROM THE COUNTY OFFICE. WE'RE VERY, VERY BLESSED IN OUR COUNTY TO HAVE THIS TYPE OF SUPPORT FOR THE ALL DADS MATTER FATHERHOOD PROGRAM. WE'VE HAD THE OPPORTUNITY TO ATTEND INTERNATIONAL FATHERHOOD CONFERENCES. AND I CAN TELL YOU WITHOUT A DOUBT THAT WE LEAD THE NATION WHEN IT COMES TO OUR COMMITMENT TO SERVING FATHERS AND FAMILY.

IT IS TRULY INSPIRING, BUT WE DO NOT REST ON THAT. WE WANT TO CONTINUE TO STAY ON THE CUTTING EDGE. WE WANT TO CONTINUE TO BE PROGRESSIVE AND WE WANT TO CONTINUE TO SERVE OUR, OUR FAMILIES, OUR FATHERS, AND OUR COMMUNITY BECAUSE IT'S JUST BETTER FOR HUMANITY. AND I THINK ONE OF THE THINGS THAT'S SIGNIFICANTLY DIFFERENT THAN OTHER COUNTIES, OTHER STATES, AND EVEN OTHER COUNTRIES IS THAT WE HAVE THE SUPPORT FROM THE BOARD OF SUPERVISORS, OUR COMMUNITY, AND THROUGHOUT. YOU ALL SUPPORT THE WORK THAT AND THE COMMITMENT THAT WE POUR INTO OUR FAMILIES, OUR CHILDREN, AND OUR COMMUNITY.

SO THANK YOU SO MUCH. IT'S TRULY BEEN AN HONOR. I APPRECIATE THE LEADERSHIP OF JOHN SCHECKLEY, OUR DEPUTY DIRECTOR. I DON'T THINK SHE'S HERE. RUBY? AND THEN ALSO REYNA ESPINOZA, WHO'S BEEN OUR PROGRAM MANAGER. BUT REALLY, CAN I JUST TAKE A MOMENT AND JUST ACKNOWLEDGE THE BOOTS ON THE GROUND, THE MEN WHO ARE TRULY IMMERSED IN THIS PURPOSE OF SERVING FATHERS AND FAMILIES, THE TEAM. ADRIAN ESPINOZA, OUR LEAD. CAN WE GIVE HIM A ROUND OF APPLAUSE? MR. SAM RANGEL.

WHO'S UP? AND IF I CAN JUST SHARE SOMETHING VERY UNIQUE, SAM RANGEL IS ONE OF TWO MALE STATE-CERTIFIED LACTATION COUNSELORS IN THE STATE. YES.

AND THEN EVERARDO SAGÚN, WHO DOES A LOT OF OUR WORK SUPPORTING MEN TO HELP THEM COMPLETE THEIR COURT PAPERWORK AND ALSO WORKING SPECIFICALLY WITH OUR SPANISH-SPEAKING POPULATIONS.

SO IT'S BEEN A BLESSING. LET'S CONTINUE TO GROW, AND I APPRECIATE YOU ALL AND YOUR SUPPORT.

THANK YOU.

ON BEHALF OF THE MERCED COUNTY BOARD OF SUPERVISORS, WE'D LIKE TO PRESENT YOU WITH THIS PROCLAMATION.

THANK YOU SO MUCH.

THANK YOU.

APPRECIATE IT.

THANK YOU.

[BOARD ACTION]

[00:15:02]

THANK YOU, CHAIR.

I WOULD JUST LIKE TO HIGHLIGHT ITEM NUMBER 29. I DON'T KNOW IF ANYBODY HAS HEARD, BUT I AM TRYING TO GET A PARK IN SANTA NELLA.

SO, I JUST WANT TO THANK THE, ITEM 29, WE'RE GOING TO ADOPT THE PLAN SPECIFICATIONS FOR THE PARK PROJECT. SO AGAIN, I WANT TO APPRECIATE THE, THE STAFF FOR MOVING THIS FORWARD. WE'RE ONE STEP CLOSER. I LIKE TO SAY THAT EVERY MEETING. I GOT TO SAY IT LAST MEETING, I COULD SAY IT THIS MEETING.

SO ONE STEP CLOSER TO THE PARK IN SANTA NELLA. SO I WOULD ENCOURAGE ALL MY BOARD MEMBERS TO VOTE YES ON THIS, AND LET'S GET A PARK IN SANTA NELLA.

THANK YOU. YOU GOT IT. I DON'T SEE ANY FURTHER COMMENTS, AND I DO HAVE A MOTION ON THE FLOOR MOVED BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PAREIRA. YOU THINK THEY WOULD HAVE HAD THE KINDNESS IN THEIR HEART TO ALLOW YOU TO MAKE THE MOTION SINCE I WAS THE LEAD? I'M GOOD.

WE'LL GO AHEAD AND CALL FOR THE VOTE. RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE BEHAVIORAL HEALTH AND RECOVERY SERVICES.

ITEMS 34 THROUGH 39.

AT THIS TIME, I WILL OPEN UP PUBLIC COMMENT FOR BEHAVIORAL HEALTH AND RECOVERY SERVICES, ITEMS 34 THROUGH 39. THE PUBLIC COMMENT PERIOD FOR BEHAVIORAL HEALTH AND RECOVERY SERVICES, ITEMS 34 THROUGH 39, IS NOW CLOSED.

WE'LL BRING IT BACK TO THE DAIS FOR FURTHER DISCUSSIONS. IF NOT, I WILL CALL FOR A MOTION. I DO HAVE A MOTION ON THE FLOOR BY SUPERVISOR PAREIRA, SECONDED BY SUPERVISOR SILVEIRA. WE'LL GO AHEAD AND CALL FOR THE VOTE.

RECORD THE VOTE. MOTION PASSES.

NEXT WE HAVE HUMAN SERVICES AGENCY, ITEMS 40 THROUGH 50. AT THIS TIME I'LL OPEN UP PUBLIC COMMENT FOR HUMAN SERVICES AGENCY ITEMS 40 THROUGH 50.

THE PUBLIC COMMENT PERIOD FOR HUMAN SERVICES AGENCY ITEMS 40 THROUGH 50 IS NOW CLOSED.

WE'LL BRING IT BACK TO THE DAIS FOR FURTHER DISCUSSION. IF NOT, I'LL CALL FOR A MOTION. I HAVE A MOTION BY SUPERVISOR PACHECO, SECONDED BY SUPERVISOR SILVEIRA. WE'LL CALL FOR THE VOTE.

RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE HEALTH.

ITEM 51.

HOLD ON, THE CHAIR RECOGNIZES SUPERVISOR PAREIRA.

YEAH, I JUST WANT TO TAKE A MOMENT TO RECOGNIZE PG&E FOR PUTTING A HELICOPTER HERE FOR FIRE PREVENTION. YOU KNOW, I KNOW IT'S PROBABLY THROUGH A SETTLEMENT THAT THEY DID THAT, BUT THAT'S A BIG BENEFIT TO OUR COMMUNITY, AND I WANT TO THANK NATHAN ALONZO, THEIR GOVERNMENTAL AFFAIRS DIRECTOR IN OUR AREA, FOR ALL THE WORK HE DOES IN HELPING US. AND, YOU KNOW, IT'S EVERY ONCE IN A WHILE, IT'S KIND OF EASY TO BEAT UP ON PG&E, BUT WHEN THEY COME THROUGH AND DO SOMETHING NICE, THEN I THINK THEY SHOULD GET THE ACCOLADE AS WELL. SO THANK YOU, MR. CHAIR.

WE WILL TAKE THAT IN CONSIDERATION.

THANK YOU.

SO WE HAVE HEALTH ITEM 51, AND AT THIS TIME WE'LL OPEN UP PUBLIC COMMENT, FOR HEALTH ITEM NUMBER 51. THE PUBLIC COMMENT PERIOD FOR HEALTH ITEM 51 IS NOW CLOSED. WE'LL BRING IT BACK TO THE DAIS.

SUPERVISOR PAREIRA, DO YOU HAVE ANYTHING YOU WANT TO SAY ABOUT HEALTH OR, NO, I'M GOOD.

OKAY, JUST CHECKING. I HAVE A MOTION ON THE FLOOR BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PACHECO. WE'LL GO AHEAD AND CALL FOR THE VOTE.

RECORD THE VOTE. MOTION PASSES.

NEXT WE HAVE FIRE.

ITEMS 52 AND 53.

CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

I YIELD TO SUPERVISOR PAREIRA FIRST.

OKAY, CHAIR RECOGNIZES SUPERVISOR PAREIRA.

JUST IN CASE YOU HAVEN'T HEARD, I'M REAL THANKFUL THAT PG&E HAS BROUGHT A HELICOPTER TO MERCED COUNTY. COUNTY FOR US TO USE IN FIGHTING FIRES. AND IF I TURN MULTIPLE SHADES OF RED, IT WAS HONESTLY BROUGHT ON BY MY COLLEAGUES.

THANK YOU.

WELL, ACTUALLY BY MYSELF.

YOU WANT TO PUSH? YEAH, I'M, I'M ON STILL, I THINK. WHY AM I SO LOW TODAY? I DON'T HEAR MYSELF.

CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR. UM, YEAH, JUST TO HIGHLIGHT THIS, THE OTHER ITEM ON NUMBER 53,

[00:20:01]

TO PROVIDE THE PERSONNEL FOR OUR FIRE DEPARTMENT. AND I'M HOPING THAT AS WE WORK THROUGH, WE HAVE A COUPLE CHALLENGES COMING OUR WAY IN THE NEXT 8 MONTHS, 7 MONTHS OR SO, THAT WE'RE ABLE TO MAYBE GET INTO A LONGER-TERM AGREEMENT WITH CAL FIRE, NOT JUST THESE 1-YEAR EXTENSIONS.

BUT I KNOW THAT BECAUSE OF SOME WORK THAT WE HAVE TO STILL DO, WE'RE JUST KIND OF DOING THESE 1-YEAR THINGS.

AND I WANT TO THANK CHIEF PIMENTEL AND GOSH, I JUST FORGOT HIS NAME. OUR OTHER CHIEF, TRINIDAD. MAN, I DON'T KNOW WHY IT JUST ESCAPED ME.

THANK THEM FOR THE WORK THAT THEY'RE DOING. YOU KNOW, WE'RE VERY FORTUNATE IN CAL FIRE NOW THAT, YOU KNOW, THE CONTRACT WITH CAL FIRE STARTED BACK IN 1988, I BELIEVE, IS WHEN THE COUNTY CONTRACTED WITH THEM. AND NOW WHAT YOU'VE SEEN IS, IS YOU'VE SEEN LEADERSHIP WITHIN CAL FIRE LOCALLY. THESE ARE ALL FOLKS THAT STARTED HERE AS, AS FIREMEN, VOLUNTEER FIREMEN IN MERCED COUNTY. SO WE'RE WE'RE VERY BLESSED TO HAVE A GROUP OF INDIVIDUALS WHO'VE STARTED WITHIN MERCED COUNTY AND NOW HAVE RISEN IN THE RANKS INTO LEADERSHIP. AND I ALWAYS FEEL REALLY CONFIDENT THAT THEY HAVE OUR BACKS IN THIS.

THEY'RE LOOKING OUT FOR THE COUNTY AS WELL AS THEY'RE LOOKING OUT FOR THEIR EMPLOYER, CAL FIRE.

SO I ENCOURAGE MY COLLEAGUES TO VOTE YES ON BOTH OF THESE ITEMS. THANK YOU.

AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR FIRE ITEMS 52 AND 53. THE PUBLIC COMMENT PERIOD FOR FIRE ITEMS 52 AND 53 ARE NOW CLOSED. WE'LL BRING IT BACK TO THE DAIS. IS THERE ANY MORE COMMENTS ABOUT THIS? IF NOT, I'LL ENTERTAIN A MOTION. I DO HAVE A MOTION BY SUPERVISOR PAREIRA, SECONDED BY SUPERVISOR PACHECO. I WILL CALL FOR THE VOTE. RECORD THE VOTE.

MOTION PASSES. NEXT WE HAVE PROBATION.

ITEM 54.

AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT, FOR PROBATION ITEM NUMBER 54.

THE PUBLIC COMMENT PERIOD FOR PROBATION ITEM 54 IS NOW CLOSED. WE'LL BRING IT BACK TO THE DAIS IF THERE'S ANY FURTHER COMMENTS. IF NOT, WE HAVE A MOTION ON THE FLOOR BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PAREIRA. WE'LL CALL FOR THE VOTE. RECORD THE VOTE. MOTION PASSES. NEXT, WE HAVE ELECTIONS.

ITEM 55.

AT THIS TIME, I WILL OPEN UP, PUBLIC COMMENT FOR ELECTIONS, ITEM NUMBER 55. I WILL CLOSE THE PUBLIC COMMENT FOR ITEM NUMBER 55, AND I'LL ALLOW OUR REGISTRAR OF VOTERS MR. LEVY.

LET ME SEE.

THE MIC IS ON.

GOOD MORNING, CHAIRMAN MCDANIEL, MEMBERS OF THE BOARD, CEO HENDRICKSON, COUNCIL HANSON. I JUST WANT TO TAKE A MOMENT AWAY FROM MANAGING THE VOTE CENTERS THAT ARE OPEN FOR THE JUNE 2ND PRIMARY TODAY FROM A.M.

UNTIL P.M. TONIGHT, RESULTS RELEASED SHORTLY AFTER P.M. ON OUR WEBSITE, TO MENTION FOR THIS ITEM, THIS IS TO AUTHORIZE APPROVAL OF, TO RECEIVE A HAVA GRANT., FROM THE FEDERAL GOVERNMENT THROUGH ADMINISTRATION OF THE STATE. THIS IS ACTUALLY KIND OF AN ADMINISTRATIVE DRILL FOR THIS HAVA GRANT. WE HAVE PREVIOUSLY BROUGHT APPROVAL FOR THIS ITEM TO THIS BOARD IN TWO SEPARATE GRANTS. THE STATE HAS SINCE COMBINED, THESE TWO GRANTS INTO ONE COMBINED TOTAL FOR ONE CONTRACT. SO IT'S A LITTLE BIT OF A PAPER DRILL, BUT I WANTED TO MAKE SURE THAT WE BROUGHT IT TO YOU FOR APPROPRIATE ROUTING, AND KIND OF EXPLAIN WHAT WAS GOING ON HERE. I ALSO HAVE AN ITEM HERE FOR SUPERVISOR PEDROZO THAT WE CAN LOOK AT AFTER. SO THANK YOU.

THANK YOU.

WE'LL BRING IT BACK TO THE DAIS. IS THERE FURTHER DISCUSSION ON THIS ITEM? SEEING NONE, I DO HAVE A MOTION ON THE FLOOR BY SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PEDROZO. WE WILL CALL FOR THE VOTE. LET'S RECORD THE VOTE. MOTION PASSES. NEXT WE HAVE TREASURER ITEM 56. AT THIS TIME I WILL OPEN A PUBLIC COMMENT PERIOD FOR TREASURER ITEM NUMBER 56. THE PUBLIC COMMENT PERIOD FOR TREASURER, FOR TREASURER ITEM NUMBER 56 IS NOW CLOSED, AND IT LOOKS LIKE WE HAVE OUR TREASURER AT THE MIC.

GOOD MORNING, GOOD MORNING, BOARD OF SUPERVISORS, OF COURSE CEO AND COUNTY COUNCIL. KAREN ADAMS, YOUR TREASURER TAX COLLECTOR.

BEFORE I GIVE A BRIEF, BRIEF UPDATE ABOUT THE QUARTERLY INVESTMENT REPORT, I JUST WANTED TO REMIND TAXPAYERS THAT OUT OF YOUR TAXES, 16 CENTS ON THE DOLLAR GOES TO THE COUNTY. IT IS AN INSERT IN YOUR TAX BILLS. PLEASE VISIT THAT. OF COURSE, THAT INFORMATION IS ALSO ON THE WEBSITE, SO I'LL LEAVE

[00:25:01]

BUT WHERE'S THE MAJORITY OF OUR TAX DOLLARS GO? UH, IT GOES TO, 16 CENTS ON THE DOLLAR GOES TO THE COUNTY, AND 60, OVER 60% GOES TO OUR SCHOOLS.

THANK YOU.

SO YES, THANK YOU. IN FRONT OF YOU TODAY IS THE QUARTERLY INVESTMENT REPORT. SO I'M HAPPY TO REPORT THAT OUR BOOK VALUE OF THE ASSETS HELD IS $2,280 MILLION WITH THE MARKET VALUATION AT $2,276 MILLION. OF COURSE, THAT IS A PERCENTAGE OF MARKET TO BOOK OF 99.82%. THAT'S GASB 31. IN THE EVENT THAT WE HAD TO HAVE A FIRE SALE, AND OF COURSE, AS WE KNOW, INTEREST RATES HAVE BEEN GOING UP. SO THAT PIVOTS BETWEEN 100% EITHER ABOVE OR BELOW. OUR WEIGHTED AVERAGE MATURITY OF OUR PORTFOLIO IS COMING UP TO ABOUT 716 DAYS. OF COURSE, WE WANT A LONGER DURATION PORTFOLIO SO THAT WE LAG THE IMPACTS OF THE FEDERAL POLICY. TOTAL EARNINGS FOR THE QUARTER ENDED WAS $21, A LITTLE SHY OF $22 MILLION FOR THE TOTAL EARNINGS FOR THE FISCAL YEAR TO DATE OF $64 MILLION. THE RATE OF RETURN FOR MARCH WAS AT 3.87, FOR THE QUARTER, 3.96, AND FOR THE FISCAL YEAR TO DATE, A 3.95. SO NICE PERCENTAGES. EVEN IF THE FED HAD CUT RATES, AND BECAUSE OUR PORTFOLIO, AGAIN, HAS A LONGER DURATION, WE LAG THOSE IMPACTS OF THE FED POLICY, I HAD ESTIMATED OUR ACTUAL ANNUAL INTEREST FOR FOR THIS FISCAL YEAR CLOSING AT $80 MILLION. FORTUNATELY, WE'RE GOING TO CLOSE WITH ABOUT $86 MILLION IN TOTAL INTEREST FOR THE ANNUAL FISCAL YEAR.

AND AGAIN, THE UNEMPLOYMENT, IT'S STEADY AT 4.3% WITH INFLATION AT 3.8%.

OF COURSE, THAT'S THAT TWO-PRONGED TEST THAT THE FEDS ARE USING TO INDICATE WHERE FED POLICY WOULD LEAD. AND THE UNDERLYING SECTORS OF THAT 3.8% INFLATION IS CORE AT 2.8%, FOOD AT 3.18%, AND UNFORTUNATELY WE ALL KNOW ENERGY IS AT 17.8% OF OUR INFLATION NUMBER. THE FIRST QUARTER GDP EXPANDED REALLY FAVORABLY, LED BY EXPORTS, BUSINESS INVESTMENT, GOVERNMENT, AND CONSUMER SPENDING. SO CONSUMERS ARE STILL HAPPY AND SPENDING MONEY IN THE MARKETPLACE.

UNDER THE NEWLY APPOINTED FED CHAIR, KEVIN WALSH, THAT WAS JUST NOMINATED AND CONFIRMED AND OF COURSE TAKING OFFICE IN MAY, THE MARKET IS INCREASINGLY PRICING IN A POTENTIAL SINGLE 25 BASIS POINT HIKE, NOT CUT, IF THE CORE INFLATION METRICS FALL, FAIL TO COOL DOWN. SO, YOU KNOW, THEY'RE HOPING FOR THAT INFLATION NUMBER TO COOL A LITTLE BIT.

OF COURSE, THAT WOULD BE, YOU KNOW, A LARGE COOLING IMPACT WOULD BE ENERGY, BUT WE'LL HAVE TO SEE HOW THAT GOES. AND THE GOOD NEWS IS THE YIELD CURVE HAS NORMALIZED. WE HAVEN'T SEEN THAT IN A LONG, LONG, LONG TIME, FLAT YIELD CURVE OR INVERTED.

FOR OUR PORTFOLIO WITH THE MAXIMUM 5-YEAR MATURITY, THE MONEY IS IN OUR 2-YEAR, 3-YEAR, AND 5-YEAR. SO WITH RATES RESPECTIVELY AT 4.05, 4.09, AND 4.18% FOR A 5-YEAR. THAT'S A TREASURY BOND. OF COURSE, THERE IS A SPREAD ABOVE THAT IF YOU GO OUTSIDE THE TREASURY INVESTMENT ASSETS. AND WE HAVE AN OVERNIGHT RATE OF 3.7%.

SO, YOU KNOW, IT IS REALLY NORMALIZING, WHICH IS VERY FAVORABLE. AND THEN THE 30-YEAR TREASURY CLOSED MAY AT A 5.07%. IT DROPPED SLIPPED DOWN A LITTLE BIT YESTERDAY AT 4.99%, BUT THAT'S NORMAL MARKET FLUCTUATION. THAT'S INDICATIVE OF, YOU KNOW, JUST MARKET ACTIVITY. SO UNLESS THERE'S ANY OTHER QUESTIONS OR, WELL, ANY QUESTIONS ON THE QUARTERLY INVESTMENT REPORT, I RENDER IT FOR YOUR ACCEPTANCE.

NO, AND I APPRECIATE THAT. AND SINCE YOU DID IT FOR THE SAKE OF THE PUBLIC, WHY DON'T YOU EXPLAIN THE TDR, HOW WE HAVE TO PAY PAY OUT EVERYBODY ELSE BEFORE WE GET OUR PERCENTAGE AS WELL.

JUST SO THE FOLKS UNDERSTAND THAT.

OH, FOR THAT TEETER? YES, HOW YOU HAVE TO BALANCE THAT AS WELL.

WELL, AND THEN THE AUDITOR IS IN CHARGE OF THE TEETER FUND, WHICH OF COURSE ENSURES THAT IF I DON'T COLLECT, OKAY, WE JUST CLOSED OUR TAX SEASON. I THINK I SENT STATS TO YOU, AND I APOLOGIZE NOT HAVING THEM IN FRONT OF ME.

THAT'S FINE.

WE HAD ABOUT A 98% COLLECTION RATE.

SO WHAT DO YOU DO WITH THAT 2% THAT'S NOT COLLECTED? EVERYBODY GOT THEIR SHARE.

EVERYBODY GOT THEIR SHARE. AND IT COMES FROM THAT TIDA RESERVE. SO WHAT DOES THE COUNTY GET FOR HAVING THAT TIDA RESERVE AVAILABLE TO MAKE SURE THAT EVERYBODY GETS WHOLE

[00:30:02]

UNFORTUNATELY, THE COUNTY IS ALWAYS SORT OF LEFT HOLDING THE BAG IF THAT TETER RESERVE DOES NOT SATISFY THAT TETER DEFICIT.

OF COURSE, THE INTEREST, OF COURSE, FROM THOSE DELINQUENT TAXES DOES OFFSET THAT, AND THAT'S THE INTENT OF THE TETER LAW THAT WAS ESTABLISHED BY, I THINK HE WAS A BOARD OF SUPERVISORS OR MAYBE AN ASSEMBLYPERSON MANY, MANY YEARS AGO, MR. PETER ESTABLISHED THAT PROCESS SO THAT COUNTIES AND THE PARTICIPANTS IN THE COUNTIES COULD HAVE SOME COMFORT IN KNOWING WHAT THEIR TAX DOLLARS WOULD YIELD FOR THEIR BUDGETS.

THANK YOU.

I HOPE THAT'S, THAT WAS PERFECT. THAT'S EXACTLY WHAT I WAS, OFF THE CUFF.

BECAUSE PEOPLE DON'T UNDERSTAND SOMETIMES THAT WE HAVE TO PAY IT ALL OUT AHEAD OF TIME.

BUT THE CHAIR DOES RECOGNIZE SUPERVISOR SILVEIRA.

YES, THANK YOU. JUST A COMMENT, MADAM TAX COLLECTOR, IS THAT WHEN YOU TALK ABOUT THAT POTENTIAL ABOUT $86 MILLION IN INTEREST THAT THE TREASURY IS GOING TO RECEIVE, UNDERSTANDING, I WANT FOLKS TO UNDERSTAND THAT NOT ALL THAT COMES TO THE COUNTY, RIGHT? IS IT IS DIVIDED BY THE POOL PARTICIPANTS. AND SO ROUGHLY 39% OF THAT IS COUNTY, WITH THE COUNTY TRUST AND COUNTY OPERATING IS 39%. THE LARGEST PORTION OF THAT, 53%, GOES TO THE SCHOOL DISTRICT. SO WHEN, WHEN KAREN TALKS ABOUT AN $86 MILLION RETURN ON INVESTMENT, THAT $86 MILLION DOESN'T JUST COME TO THE COUNTY. WE GET ROUGHLY 39% OF THAT $86 MILLION THAT GOES BACK INTO OUR COFFERS.

ABSOLUTELY, AND THANK YOU FOR HIGHLIGHTING THAT. AND THEN IN THE REPORT, WHICH IS ALWAYS AFTER IT'S APPROVED BY THE BOARD OF SUPERVISORS, WE PUT THIS ON MY WEBSITE, SO TOTAL TRANSPARENCY.

ON PAGE 7, IT ACTUALLY HAS THAT BREAKDOWN THAT SUPERVISOR SILVEIRA REFERRED TO. SO WE ALSO HAVE OUR INVESTMENT ASSET LINEUP AND WHAT WE ARE AUTHORIZED, AND I'M HAPPY TO SAY THAT WE MAINTAIN ALL OF OUR COMPLIANCE WITH THE CALIFORNIA CODE AND, OF COURSE, OUR SELF-IMPOSED RESTRICTIONS OF THE PORTFOLIO TO DIVERSIFY AND TO PROVIDE THE ADDITIONAL NET ADDED VALUE TO, FOR THE PARTICIPANTS, WHICH AGAIN INCLUDES THE COUNTY, THE SCHOOLS, THE COLLEGE, NUMEROUS, NUMEROUS SPECIAL DISTRICTS.

THE LIST IS EXTENSIVE. SO ALL OF US ARE ALL IN THIS TOGETHER AND IT'S ONE POOL AND WE ALL BENEFIT FROM IT. SO THANK YOU FOR THE CLARITY, SUPERVISOR SILVEIRA. THANK YOU MUCH.

THANK YOU.

OKAY, I'LL BRING IT BACK TO THE DAIS. IS THERE ANYTHING ELSE? IF NOT, I WILL ENTERTAIN A MOTION. I HAVE A MOTION BY SUPERVISOR PAREIRA, SECONDED BY SUPERVISOR PACHECO. I'LL CALL FOR THE VOTE. RECORDER TO VOTE. MOTION PASSES. NEXT WE HAVE WORKFORCE INVESTMENT, ITEM 57. ITEM NUMBER 57. I'LL INVITE WORKFORCE UP.

DO YOU, GOOD MORNING, CHAIRMAN MCDANIEL. GOOD MORNING, BOARD OF SUPERVISORS. UH, AS YOU KNOW, MY NAME IS ERIC SERRATO, AND I AM THE PROUD DIRECTOR OF THE DEPARTMENT OF WORKFORCE INVESTMENT. DO WANT TO SAY A FEW WORDS ABOUT THIS ITEM, AND THEN I'LL BE JOINED BY MEMBERS OF MY BOARD.

BY REALLY ANY MEASURE, THE DEPARTMENT OF WORKFORCE INVESTMENT PUNCHES ABOVE ITS WEIGHT. WE SERVE MORE INDIVIDUALS THAN ORGANIZATIONS TWICE OUR SIZE. WE HAVE BROUGHT SUBSTANTIAL RESOURCES INTO THIS COUNTY, AND WE HAVE GREAT INFLUENCE LARGER ISSUES OF WORKFORCE DEVELOPMENT ACROSS THE STATE. AND THERE ARE A FEW REASONS FOR THAT.

FIRST, IT IS THE HARDWORKING STAFF THAT GOES TO WORK EVERY DAY TO MAKE SURE THAT PEOPLE ARE ABLE TO GET BACK TO WORK AS SOON AS POSSIBLE.

SECONDLY, THIS ROAD HAS BEEN LAID BEFORE ME PRIMARILY BY THE WORK OF MY PREDECESSOR, OUR ASSISTANT CEO DAVID MARIONI, THAT SET THIS ORGANIZATION ON A PATH TOWARD ITS CURRENT LEVEL OF PERFORMANCE. PERFORMANCE, AND I'VE BEEN HAPPY TO COME IN BEHIND THAT. BUT LASTLY, IT IS AN ENGAGED AND FOCUSED WORKFORCE DEVELOPMENT BOARD THAT I WILL TELL YOU IS BETTER THAN ANY OTHER WORKFORCE BOARD IN THE COUNTRY. IT'S THIS ENGAGED BOARD THAT IDENTIFIED A REAL PAIN POINT, A WEAKNESS IN OUR SYSTEM, AND THAT IS THAT AS GREAT AS WE ARE, WE FOUND THAT OUR CUSTOMERS WERE OFTEN CONFUSED ABOUT WHO WAS DELIVERING THESE SERVICES. WAS IT WORKNET? WAS IT THE MERCED COUNTY WORKFORCE FORCE DEVELOPMENT BOARD, OR WAS IT THE DEPARTMENT OF WORKFORCE INVESTMENT? TO HELP US RESOLVE THIS, WE HIRED A TOP-NOTCH COMMUNICATIONS FIRM OUT OF CARLSBAD WITH A FOCUS ON ECONOMIC DEVELOPMENT AND GOVERNMENT AGENCIES THAT HELPED US IDENTIFY A SOLUTION. THIS TOOK HUNDREDS OF SURVEYS,

[00:35:01]

ITEMS LIKE THIS ARE FIRST RESOLVED AND DEVELOPED WITHIN THE WORKFORCE BOARD, AND THEY ARE BROUGHT THEN TO THIS LARGER BODY FOR CONSIDERATION AND HOPEFULLY APPROVAL. AS I MENTIONED, ALL OF THIS WORK HAS LED TO THIS ITEM IN WHICH WE ARE ASKING YOU TO CONSIDER A TRANSFER OF BRAND FROM WORKNET TO PROSPERO. PROSPERO, WE THINK, IS A BRAND THAT IS MORE COMMENSURATE WITH THE DEPTH OF OUR IMPACT ACROSS THIS COUNTY AND REALLY ACROSS THIS STATE. IT COMES FROM THE WORD PROSPER AND PROSPERITY, WHICH IS SOMETHING THAT I KNOW WE ALL WANT FOR EVERY RESIDENT OF MERCED COUNTY. THIS WORK THAT WE DID WITH THIS FIRM ALSO IDENTIFIED 4 PILLARS OF OUR WORK THAT WE THINK THIS BRAND REALLY TALKS TO. ONE IS THAT THE WORKFORCE BOARD IS A BIG PICTURE ORGANIZATION THAT TACKLES LARGE ISSUES OF WORKFORCE DEVELOPMENT. THE SECOND IS THAT WE DON'T GO IT ALONE. WE CHOOSE TO PARTNER WITH OTHER AGENCIES TO MAKE SURE THAT WE ARE SERVING THE COMMUNITY AS EFFICIENTLY AS POSSIBLE. THIRD IS THAT WE ARE A BRIDGE TO INDUSTRY SO THAT WE ARE INFORMING OUR JOB SEEKERS OF THE JOBS THAT THEY SHOULD BE PURSUING AND ALSO HELPING OUR BUSINESSES FIND TALENT. AND THE LAST IS THAT WE ARE ABSOLUTELY COMMITTED TO EXCELLENCE IN EVERYTHING THAT WE DO. DO.

NOW, THESE KINDS OF BRAND TRANSITIONS ARE VERY, VERY TRICKY, AND SO WE'VE THOUGHT LONG AND HARD, LARGELY INFORMED BY YOUR COMMENTS DURING PREVIOUS BRIEFINGS, ABOUT HOW WE'RE GOING TO DO THAT. AND SO THAT'LL INCLUDE, IF WE'RE GIVEN THE OPPORTUNITY, PRESENTATIONS TO PARTNERS AND OTHER AGENCIES, SOCIAL MEDIA ANNOUNCEMENTS THAT HELP PEOPLE UNDERSTAND, SEO ON OUR WEBSITE THAT HELPS IDENTIFY OUR SERVICES TO BUSINESSES AND TO CUSTOMERS, A SERIES OF EVENTS THAT WILL BRING ALL OF THIS TOGETHER, AND WE'LL COMMUNICATE IN A NUMBER OF DIFFERENT WAYS. NOW, TO ADD A LITTLE MORE COLOR TO OUR WORK, I'VE ASKED TWO MEMBERS OF OUR BOARD, OUR AD HOC MARKETING COMMITTEE, TO JOIN ME. WE'LL FIRST HEAR FROM TIM O'NEILL, OUR VICE CHAIR, AND THEN FROM OUR CHAIR, LESLIE ABASTA, AND THEN I'LL BE HAPPY TO TAKE ANY FURTHER QUESTIONS.

THANK YOU. PERFECT.

THANK YOU. GOOD MORNING.

GOOD MORNING, MR. CHAIR, CEO HENDERSON, COUNTY COUNCIL, MEMBERS OF THE BOARD. MY NAME IS TIM O'NEILL. I LIVE IN MERCED, AND I'M THE FOUNDER AND CEO OF IMAGE MASTERS, A LOCAL PROMOTIONAL MARKETING COMPANY.

I'VE SPENT MY CAREER CAREER IN MARKETING. I HAVE A MASTER'S IN COMMUNICATION. I'VE OVERSEEN THE CREATION OF DOZENS OF STRATEGIC MARKETING PLANS FOR BOTH PUBLIC AND PRIVATE ORGANIZATIONS. I'VE HAD DIRECT PROFESSIONAL INVOLVEMENT IN MULTIPLE MAJOR REBRANDING EFFORTS. THIS, THIS BOARD APPOINTED ME TO THE WORKFORCE INVESTMENT EXECUTIVE BOARD 12 YEARS AGO. AT THAT TIME, THE WIB WAS OFTEN DESCRIBED RUBBER STAMP. THAT CHANGED WITH LEADERSHIP, INTENTION, AND STRONGER BUSINESS REP, REPRESENTATION. OUR EFFORTS ACCELERATED WHEN A FORMER DIRECTOR RETIRED AND WE WERE ABLE TO RECRUIT DAVID MIRIONI. DAVID HELPED US TO SHIFT OUR FOCUS TO EMPLOYERS, NOT AWAY FROM JOB SEEKERS, BUT IN SERVICE TO THEM BY ALIGNING THE TRAINING NEEDS OF THE EMPLOYER COMMUNITY AND THIS BOARD PLAYED AN IMPORTANT ROLE IN, IN THAT EVOLUTION.

YOU SUPPORTED VERY DIFFICULT BUT NECESSARY DECISIONS THAT GAVE US GREATER FLEXIBILITY ON HOW WE DEPLOY TRAINING RESOURCES. THAT FLEXIBILITY HAS ALLOWED US TO BETTER SERVE BOTH EMPLOYERS AND JOB SEEKERS HERE IN MERCED COUNTY. WHEN DAVID LEFT FOR HOLLISTER, WE WERE VERY FORTUNATE TO RECRUIT ERIC SERRATO. ONE OF THE MOST RESPECTED WORKFORCE LEADERS IN THE STATE OF CALIFORNIA.

ERIC BRINGS VISION, STRONG INDUSTRY RELATIONSHIPS, AND AN ENTREPRENEURIAL MINDSET THAT IS SO RARE IN GOVERNMENT THESE DAYS.

UNDER HIS LEADERSHIP, WE'VE SECURED MILLIONS OF DOLLARS IN GRANTS FUNDING AND STRENGTHENED OUR REGIONAL IMPACT. THE REBRANDING EFFORT YOU'RE CONSIDERING TODAY WAS NOT RUSHED. IT HAS BEEN IN DISCUSSION FOR YEARS AND THEN FORMALLY UNDERWAY FOR THE LAST 2 YEARS. WE ESTABLISHED A BUDGET, ISSUED AN RFP, SELECTED JPW, A HIGHLY QUALIFIED FIRM WITH DEEP EXPERIENCE IN PUBLIC SECTOR AND WORKFORCE COMMUNICATIONS. A SUBCOMMITTEE INCLUDING DIRECTOR SURRATTO, CHAIR ABASTA, AND MYSELF WORKED CLOSELY WITH JPW WITH REGULAR UPDATES TO THE 22 MEMBERS OF OUR FULL BOARD. THE PROCESS WAS DELIBERATE, RESEARCH-DRIVEN, AND GROUNDED IN BEST PRACTICES. I ALSO WANT TO ACKNOWLEDGE THAT OUR COMMITTEE,

[00:40:01]

IN HINDSIGHT, EARLIER ENGAGEMENT WOULD HAVE BEEN BENEFICIAL, AND I APPRECIATE YOUR WILLINGNESS TO MEET WITH US INDIVIDUALLY OVER THE PAST FEW DAYS TO GET THE BRIEFINGS THAT YOU SHOULD HAVE ENJOYED MUCH EARLIER.

ULTIMATELY, THIS DECISION IS NOT ABOUT WHETHER ANY ONE OF US PERSONALLY PREFERS A NAME. I, I BEG YOU NOT TO VOTE ON PERSONAL PREFERENCE.

THERE'S NO NAME THAT WE COULD HAVE COME UP WITH THAT WOULD HAVE BEEN UNIVERSALLY ACCEPTED.

THIS IS ABOUT WHETHER THE RECOMMENDED BRAND WILL ALLOW US TO POSITION OUR ORGANIZATION MORE CLEARLY, MORE EFFECTIVELY, AND MORE PROFESSIONALLY TO THE EMPLOYERS AND THE JOB SEEKERS THAT WE SERVE. YOUR MARKETING EXPERTS ON YOUR APPOINTED WORKFORCE BOARD ARE CONFIDENT THAT IT DOES. YOU HAVE A WORKFORCE BOARD MADE OF EXPERIENCED BUSINESS AND COMMUNITY LEADERS. WE HAVE 3 OF THE BEST MARKETING MINDS IN MERCED COUNTY WORKING ON THIS PROCESS. WE'VE ENGAGED A HIGHLY QUALIFIED FIRM, AND WE HAVE FOLLOWED A THOUGHTFUL STRUCTURED PROCESS POWERED BY LOTS OF VOLUNTEER INPUT AND SUPPORTED BY MERCED COUNTY'S FINANCIAL INVESTMENT IN THIS WHOLE PROCESS, INCLUDING JPW'S PROFESSIONAL SERVICES. SO I WOULD RESPECTFULLY ASK YOUR SUPPORT BASED ON THAT PROCESS, THAT EXPERTISE, AND OUR SHARED COMMITMENT TO IMPROVING WORKFORCE OUTCOMES IN MERCED COUNTY. THANK YOU FOR YOUR TIME.

THANK YOU.

GOOD MORNING. GOOD MORNING, CHAIR, MEMBERS OF THE BOARD, CEO HENDRICKSON, COUNTY COUNCIL. MY NAME IS LESLIE ABASTA, AND I LIVE HERE IN MERCED, AND I HAVE FOR MOST OF MY LIFE. I SERVE AS THE CEO OF LUMERA HEALTHCARE, WHICH IS FORMERLY KNOWN AS LIVINGSTON COMMUNITY HEALTH. AND I HAVE SERVED AS THE CHAIRPERSON OF THIS COUNTY WORKFORCE BOARD FOR ALMOST A DECADE. IT HAS BEEN BOTH A PERSONAL AND PROFESSIONAL HONOR TO BE HERE REPRESENTING THE WORK THAT WE HAVE BEEN ABLE TO COMPLETE, BUT ALSO THAT HAS REALLY DIRECTLY IMPACTED THE COMMUNITY THAT I CALL HOME AND HAVE CALLED HOME.

OVER THE PAST DECADE, WE HAVE TRANSFORMED OUR WORKFORCE BOARD INTO A STRATEGIC EMPLOYER-DRIVEN SYSTEM FOCUSED ON OUTCOMES. THE WORK HAS BEEN VERY INTENTIONAL, AND THE WORDS MIGHT SOUND A LITTLE BIT SIMILAR TO MY COLLEAGUE, BUT WE HAVE REALLY ALIGNED OUR TRAINING AND OUR PROCESS AND APPROACH WITH WHAT WE THINK IS REALLY MEETING THE NEEDS FOR THIS, THIS COMMUNITY NOW AND CREATING PATHWAYS TO EMPLOYMENT. WHILE OUR WORK IS REALLY ROOTED HERE IN MERCED MERCED COUNTY, OUR IMPACT ACTUALLY EXTENDS BEYOND MERCED COUNTY, AND THIS BOARD SHOULD BE VERY PROUD OF THAT. UNDER THE LEADERSHIP OF OUR EXECUTIVE DIRECTOR, ERIC SERRATO, OUR DEPARTMENT IS NOW HELPING LEAD WORKFORCE EFFORTS ACROSS 3 COUNTIES AS WELL AS STATEWIDE EFFORTS THAT REALLY IMPACT THE WAY WORKFORCE IS DELIVERED AND, AND TRAINING IS DELIVERED ACROSS THE STATE AND THESE 3 IN THE REGION. OUR REGIONAL ROLE REFLECTS THE STRENGTH OF THIS ORGANIZATION.

ORGANIZATION AND THE STRENGTH OF THIS COUNTY AS WELL AND THE TRUST THAT IT PLACES IN THAT LEADERSHIP. MOVING INTO TODAY'S AGENDA ITEM, THE REBRANDING EFFORT BEFORE YOU REFLECTS THAT GROWTH AND TRANSITION AND GROWTH AND REBRANDING IS NOT EASY. IT IS A LONG ROAD AND IT IS GOING TO TAKE US SOME TIME TO GET THERE. I'M VERY, I AM VERY, I BELIEVE VERY STRONGLY IN THE PLAN THAT WE HAVE TO ROLL THIS OUT. AND TO REITERATE THE COMMENT, THIS WAS NOT A QUICK AND COSMETIC CHANGE. WE DIDN'T SIT IN A ROOM AND COME UP WITH THIS NAME. THIS WAS A VERY STRATEGIC APPROACH. IT WAS A MULTI-YEAR RIGOROUS PROCESS THAT WAS GROUNDED IN DATA, STAKEHOLDER INPUT, AND EXPERT GUIDANCE TO GET US TO WHERE WE ARE TODAY. WE REALLY DID FOLLOW AMONGST OUR BOARD A VERY TRANSPARENT GRANT PROCESS. I WILL, I WILL REINFORCE THE COMMENTS THAT MY COLLEAGUE MADE, WHICH WAS WE SHOULD HAVE PROBABLY SHOWN THIS SOONER, BUT WE FELT THAT WE WERE FOLLOWING A REALLY GOOD PROCESS. WHAT YOU SEE TODAY IS THE RESULT OF THAT WORK. IT REPRESENTS WHO WE ARE TODAY, BUT ALSO WHO WE THINK WE'RE GOING TO BE IN THE FUTURE AND WHO WE CAN BE TOMORROW. AND TO BE REALLY CLEAR, THIS RECOMMENDATION ORGANIZATION STANDS ON THE STRENGTH OF THAT PROCESS AND THAT EXPERTISE BEHIND IT.

THIS IS NOT OUR PERSONAL PREFERENCE. THIS IS WHERE WE LANDED. IT IS ABOUT MAKING THE RIGHT STRATEGIC CHOICE FOR THIS ORGANIZATION TO POSITION ITSELF FOR ITS BEST, BEST POSITION GOING FORWARD.

AS SOMEONE WHO LIVES HERE IN MERCED, THIS IS ACTUALLY VERY

[00:45:01]

THANK YOU.

AND I CAN SAY, AS BEING A MEMBER OF THIS BOARD AS WELL, THIS WAS A VERY ROBUST STAKEHOLDER PROCESS THAT I GOT TO PARTICIPATE IN. I REMEMBER THESE FULL ROOMS, AND USUALLY IT'S A LITTLE UNCOMFORTABLE WHEN THEY'RE THROWING STUFF OUT THERE AND YOU HAVE TO PARTICIPATE IN THE WAYS THAT WE DID.

BUT I GOT TO SAY, THIS WAS VERY ROBUST, AND I'LL, I CAN'T ADD MUCH TO WHAT TIM AND LESLIE HAVE SAID. THOSE WERE, THAT WAS FANTASTIC COMMENTS IN CAPTURING WHAT WE'RE TRYING TO DO HERE.

BUT AS YOU GUYS KNOW, I BRAG ABOUT THIS COMMITTEE MORE THAN ANY OTHER COMMITTEE BECAUSE OF THE PRIVATE STAKEHOLDERS THAT WE HAVE IN THIS, IN THE PROCESS.

BUT I CAN JUST SAY THAT, WE ONLY TALKED ABOUT THE STATE RECOGNITION, BUT THERE'S ACTUALLY NATIONAL RECOGNITION. WE'VE BEEN RECOGNIZED OUT OF THE WHITE HOUSE FOR THE WORK THAT WE'RE DOING.

AND WHEN YOU COME BACK HERE, WHEN YOU SAY WORKFORCE DEVELOPMENT, IT DOESN'T RING THROUGHOUT THE COMMUNITY. AND THIS ROBUST, THIS IS ALL THE STAKEHOLDERS AND ALL THE PEOPLE THAT WERE INPUT. THIS IS WHAT WE CAME UP WITH. AND BECAUSE OF BROWN ACT, I WASN'T ABLE TO HAVE ANY DISCUSSIONS WITH MY COLLEAGUES ON THIS, AND I WISH I COULD BECAUSE OF THE EXCITEMENT I WAS HAVING THROUGH THE PROCESS AS WELL.

AND IT'S AMAZING HOW MANY RELATIONSHIPS I BUILT WITHIN THE COMMUNITY OF THE STAKEHOLDERS AS WELL THAT IS EXISTING NOW BEYOND THIS.

THEY'RE PURSUING, WHAT I'M GOING TO DO THEN IS I'M GOING TO, I HAVE SOME BOARD MEMBERS THAT HAVE SOME QUESTIONS OR COMMENTS. SO THE CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR.

DIRECTOR SOTO, SO I ASKED MYSELF, LIKE, HOW DID WE GET HERE? SO THIS IS, WAS MY FRUSTRATION. I, I WANT YOU TO UNDERSTAND, I'VE HAD SOME CONVERSATIONS WITH SOME OF YOUR BOARD MEMBERS THAT I HAVE NO ISSUES ON WITH WHAT YOU'RE TRYING TO DO HERE. IT MAKES COMPLETE SENSE TO ME, RIGHT? THE WHOLE, ARE WE WORKNET? IS IT EDD? IS IT, IS IT WORK, THERE'S, THERE'S SO MANY. SO KIND OF REBRANDING THAT INTO ONE NAME THAT REPRESENTS ALL OF THEM, THAT THAT'S NOT MY ISSUE AT ALL. THE NAME ITSELF, NOT MY ISSUE AT ALL. PROCESS IS MY ISSUE, RIGHT? AND WE'VE HAD THIS DISCUSSION BEFORE. SO I GUESS IT'S, I ASK MYSELF, LIKE, HOW DID WE GET HERE, RIGHT? AS THE POLICYMAKERS, ULTIMATELY, WE'RE THE ONES THAT HAVE TO GIVE THE FINAL BLESSING ON IT. HOW COME WE DIDN'T GET THAT INFORMATION SOONER? AND, AND SO THE ONLY, LIKE, LOGICAL CONCLUSION THAT I CAN COME TO, BECAUSE I KNOW THAT YOU'RE A PRETTY INTELLIGENT AND SMART GUY AND GOOD GOOD AT WHAT YOU DO. DID YOU GUYS NOT THINK THAT IT NEEDED TO COME TO THE BOARD OF SUPERVISORS FOR APPROVAL? AND SO DID YOU THINK THAT IT WAS JUST A, A PROCESS THING THAT YOU WOULD DO, YOU WOULD DEAL WITH AT YOUR BOARD LEVEL? IS, IS THAT WHY WE ENDED UP HERE TO WHERE, BECAUSE THAT WAS WHERE I WAS KIND OF TAKEN BACK BY IT. IT SHOWS UP ON MY AGENDA. I GOT A MEMO FROM, FROM SOMEONE IN YOUR OFFICE THAT SENDS ME KIND OF A BREAKDOWN, A QUICK LITTLE BRIEFING ON AND, AND IN THAT BRIEFING, IT EXPLAINED THE EXTENSIVE TIMELINE THAT YOU GUYS HAVE BEEN WORKING ON THIS FOR YEARS. AND AS MUCH AS I WOULD LOVE TO TELL YOU THAT I KNOW EVERY STINKING THING THAT GOES ON IN THIS COUNTY AT ALL TIMES, I, IT'S NOT HUMANLY POSSIBLE. AND SO I WAS REALLY KIND OF TAKEN BACK BY LIKE THAT, WOW, HOW DID I NOT KNOW ABOUT THIS WHEN THERE'S BEEN A LOT OF GOOD WORK THAT'S BEING DONE BY A LOT OF GOOD PEOPLE ON THIS, AND IT CAME TO ME SO LATE? SO DO YOU HAVE ANY COMMENTS ON THAT? IS IT SOMETHING THAT MAYBE DIDN'T THINK THAT IT NEEDED TO COME TO THIS BOARD AND THEN AFTERWARDS REALIZED? YEAH, I, WE GOT TO THIS POINT IN THIS WAY BECAUSE OF A MISTAKE, AND, YOU KNOW, THE DEPARTMENT TAKES OWNERSHIP OF THAT. I THINK IT WAS, NOT JUST A MISTAKE BUT A PERFECT STORM OF CONFUSION. SO, SUPERVISOR, THE WAY THAT WORKFORCE BOARDS, WE TYPICALLY DO BORING STUFF, AND SO WE NOODLE ON IT FOR A LONG TIME AND WE BRING IT TO OUR BOARDS, AND IT'S EVALUATED AND VOTED ON, AND THEN WE BRING IT TO THE STATE, BECAUSE THAT'S SORT OF OUR MOTHER AGENCY, AND THEN WE TYPICALLY BRING THINGS TO THIS BODY SORT OF FOR RATIFICATION OR APPROVAL.

AND THERE ARE LESS ENGAGED COMMUNITIES ACROSS THE COUNTRY THAT WOULDN'T HAVE EVEN THOUGHT TWICE ABOUT APPROVING ANYTHING LIKE THIS. AND SO IT WAS A MISJUDGMENT IN TERMS OF THE PROCESS STEPS, MISSTEPS. AND SO I FULLY OWN THAT AND RECOGNIZE THAT.

BUT IT WAS NOT IN ANY EFFORT TO DO ANYTHING SECRETLY.

IN FACT, WE WERE PRETTY PUBLIC EVERY OTHER PLACE THAN HERE.

AND SO WE RECOGNIZE THAT.

THAT'S A LEARNING OPPORTUNITY FOR US. BUT OUR PROCESS, I CAN TELL YOU, WAS VERY METHODICAL AND VERY STRATEGIC.

AND THANK YOU, BECAUSE ULTIMATELY, LISTEN, THE TRUE SIGN OF SIGN OF LEADERSHIP FOR ME IS SOME, IS WHEN YOU DO MAYBE NOT DO THINGS EXACTLY RIGHT, IS OWNING IT AND SAYING, HEY, BAD ON US, WON'T DO IT AGAIN.

AND I APPRECIATE THAT. FOR, FOR ME, THAT, THAT'S,

[00:50:01]

IS I DON'T LIKE BEING THE LAST PERSON TO KNOW WHEN I THINK I SHOULD BE THE FIRST PERSON TO KNOW. SO ULTIMATELY, I APPRECIATE US WORKING THIS OUT, AND, AND I CAN TELL YOU, AT LEAST FOR ME, AGAIN, BACK TO PROCESS, WHAT YOU'RE TRYING TO ACCOMPLISH, I AGREE WITH ALL THOSE THINGS. AND FOR THAT, I WILL BE IN SUPPORT OF THIS ITEM.

THANK YOU. THANK YOU.

CHAIR RECOGNIZES SUPERVISOR PEDROZO. OKAY.

AND THANK YOU. I ECHO A LOT OF WHAT MY COLLEAGUE SUPERVISOR SILVEIRA SAID. BUT, YOU KNOW, ONE THING THAT KEEPS GETTING SAID, AND I RECOGNIZE, AND I DON'T MEAN TO BEAT A DEAD HORSE ON THIS, BUT, YOU KNOW, WHEN YOU SAY WE HAD A LOT OF PRIVATE STAKEHOLDER MEETINGS, WE HAD A LOT OF STAKEHOLDER MEETINGS AND A LOT OF BUY-IN FOR THIS, BUT THERE'S ONLY 5 THAT REALLY MAKE THE DECISION.

DECISION, RIGHT? AND THAT'S US 5. AND SO FOR US TO, TO FIND OUT LAST MINUTE, LIKE IN A BRIEFING, LIKE FROM SOMEBODY FROM YOUR OFFICE, THE PROCESS WAS VERY POOR. AND THEN, YOU KNOW, IT'S LIKE, AND TO BE LOBBIED, WHICH IS FINE, THAT'S GREAT, BY MEMBERS OF YOUR BOARD AND STUFF, I THINK THAT'S, THAT'S, THEY SHOWS THAT THEY'RE INTERESTED AND THEY'RE ENGAGED.

BUT LET ME ASK YOU THIS, HAS, WHEN YOU SAY YOU GO TO THE STATE HAS THE STATE APPROVED WHAT YOU'RE DOING WITH THIS? NO.

OKAY.

IT'S AWARE.

AND HAVE YOU, HAVE YOU USED THIS LOGO IN OTHER MEET, LIKE FOR OTHER MEETINGS, OR HAVE YOU PUT THIS LOGO ON ANY AGENDAS OR ANYTHING LIKE THAT? WE'VE SHARED IT WITH OUR WORKFORCE BOARD. WE HAVEN'T SHARED IT PUBLIC ON ANY SOCIAL MEDIA. THERE'S, I DON'T THINK THERE'S ANY PUBLIC RECOGNITION OF IT OTHER THAN AT OUR WORKFORCE BOARDS.

OKAY.

BECAUSE I, I SEE AN AGENDA FROM MARCH 26TH THAT HAS YOUR, AND THAT'S A PUBLIC MEETING, CORRECT? IT IS.

AND SO THEN IT HAS BEEN PUT OUT IN PUBLIC.

WE, WE DID PUT THAT THERE AS THE FIRST TIME THAT WE WERE LETTING OUR BOARD KNOW THAT THIS IS WHAT THAT LOGO WOULD LOOK LIKE, AND THIS IS, THIS IS IT. WE HAVE NOT SUBMITTED, THERE'S A FORMAL PAPERWORK THAT WE WOULD SUBMIT AFTER THIS CONSIDERATION TO THE STATE. WE LET THE STATE WORKFORCE BOARD DIRECTOR KNOW THAT THIS WAS THE WAY THAT THE BOARD HAD VOTED TO ADVANCE THIS ITEM.

BUT THAT'S CORRECT.

OKAY, SO AGAIN, I APPRECIATE THE FACT THAT YOU'RE TAKING OWNERSHIP, I REALLY DO. I THINK THAT, YOU KNOW, AT THE END OF THE DAY, AND I, THE NAME DOESN'T REALLY BOTHER ME. I THINK I APPRECIATE WHAT YOU'RE DOING BY TRYING TO BRING EVERYTHING IN. THAT'S THE THING I THINK IS REALLY IMPORTANT SO THAT THERE'S LESS CONFUSION ON EVERYTHING THAT GOES ON, AND I LIKE IT. AGAIN, IT'S JUST THE PROCESS ASPECT OF IT, AND GETTING WAY OUT IN FRONT OF US IS SOMETHING THAT, YOU KNOW, IT'S, AND AGAIN, I ECHO WHAT MY COLLEAGUE SAID, YOU KNOW, I DON'T KNOW EVERYTHING THAT GOES ON, BUT IF SOMETHING LIKE THIS HAPPENS, IT'S LIKE, WELL, WHAT THE HECK IS THIS? AND AS I'M READING MY AGENDA, AND I FIND OUT, AND I HAD NO IDEA. BUT AGAIN, I THINK THAT I APPRECIATE THE WORK THAT EVERYBODY'S DOING. I APPRECIATE YOUR BOARD. I KNOW THE PEOPLE ON THE BOARD. I THINK THEY'RE GREAT, INTELLIGENT PEOPLE WHO DO REALLY GOOD WORK FOR, BY STEPPING UP. I MEAN, IT'S HARD TO GET PEOPLE TO SERVE ON ANY BOARDS, REALLY. AND SO I APPRECIATE IT.

BECAUSE OF THIS. IT'S NOT, AND THIS ISN'T ABOUT THE NAME, THIS ISN'T ABOUT ANYTHING LIKE THAT, BECAUSE WHEN I LOOK AT THE WHOLE GRAND SCHEME OF THINGS, THERE ARE SO MANY OTHER FISHES TO FRY, BIGGER FISHES TO FRY IN MERCED COUNTY THAN NAMING, REBRANDING SOMETHING. AND I APPRECIATE WHAT YOU'RE DOING. I JUST THINK THAT KNOWING THAT WHAT THE PROCESS IS IS IMPORTANT AND MAKING SURE IT DOESN'T, YOU KNOW, MOVE FORWARD, HAPPEN AGAIN. BUT WITH THAT, I'M GONNA BE IN SUPPORT.

THANK YOU. CHAIR RECOGNIZES SUPERVISOR PAREIRA.

UH, THANK YOU, MR. CHAIR.

UM, I, I HAVE A FEW QUESTIONS.

UM, ONE WOULD BE, WHAT, WHAT ARE THE OTHER NAMES THAT WERE, I GUESS ELIGIBLE TO BE PICKED BY YOUR BOARD? THERE, IT, IF YOU'D ALLOW ME TO SORT OF EXPLAIN THE PROCESS, IT WASN'T THAT THERE WERE 5 AND WE PICKED PROSPERO FROM THAT 5. THERE WERE THEMES THAT CAME OUT OF THE 530 SURVEYS AND THE FOCUS GROUPS THAT WERE AROUND IDEAS OF MOMENTUM, ECONOMIC GROWTH, PROSPERITY.

AND SO THOSE THEMES EVOLVED THROUGH A PROCESS, AND IT WAS ACTUALLY VICE CHAIR O'NEILL THAT CAME UP WITH

[00:55:01]

OKAY. AND THEN WHAT ARE, WHAT WOULD YOU CONSIDER ARE THE CORE FUNCTIONS OF YOUR DEPARTMENT? SO THE FOUR FUNCTIONS OF OUR DEPARTMENT ARE TO HELP BUSINESSES IDENTIFY TALENT SO THAT THOSE BUSINESSES ARE MORE COMPETITIVE AND SUCCESSFUL THAN THE COUNTY NEXT TO US, TO HELP JOB SEEKERS FIND QUALITY JOBS IN AREAS OF THE ECONOMY THAT ARE GROWING. AND PROBABLY THE THIRD PILLAR OF THAT WORK IS TO DISSEMINATE DATA AND INFORMATION BOTH TO JOB SEEKERS AND TO BUSINESSES SO THAT THEY'RE MAKING DECISIONS THAT ARE GOING TO HELP SUPPORT THEIR FAMILIES AND HELP THEIR FAM, THEIR BUSINESSES BUSINESSES GROW.

AND THEN I GUESS MY REAL QUESTION WAS NOT 30,000 FEET, BUT WHAT DO YOU DO? WHAT ARE THE, I GUESS, THE DEPARTMENTS IF YOU HAVE, AS YOU KNOW, WHAT ARE THE THINGS YOU DO SPECIFICALLY? YEAH, I APOLOGIZE.

NO, THAT WASN'T YOUR FAULT.

SO WE OPERATE JOB CENTERS. SO THERE'S A SYSTEM OF JOB CENTERS ACROSS THE COUNTRY IN CALIFORNIA THAT ARE CALLED AMERICA'S JOB CENTERS OF CALIFORNIA. CALIFORNIA, AND WE OPERATE THOSE JOB CENTERS. WE WILL, BY THE SUMMER, HAVE 4 JOB CENTERS THAT ARE OPEN AND AVAILABLE TO THE PUBLIC AT DIFFERENT PARTS OF THE COUNTY. WE ALSO SUBSIDIZE EMPLOYMENT FOR FOLKS THAT ARE HAVING A TOUGH TIME GETTING A JOB. WE DRAW DOWN FUNDS, WE SORT OF SWEETEN THE DEAL WITH THE EMPLOYER IF THEY TAKE A CHANCE ON SOMEONE WHO MAYBE HAS SOME GAPS IN THEIR EMPLOYMENT. WE PARTNER WITH OTHER AGENCIES HERE. WE PARTNER WITH HSA, WITH PROBATION, TO HELP THEIR CLIENTS FIND GOOD JOBS. AND WE PUT ON A NUMBER OF PROGRAMS, AND THOSE PROGRAMS ARE AIMED TO PARTS OF THE ECONOMY THAT ARE GROWING. SO THAT'S WHY YOU'LL SEE TRAINING COHORTS OF MEDICAL ASSISTANTS OR WELDERS.

WE PICK PARTS OF THE ECONOMY THAT ARE DOING WELL, AND WE MOVE PEOPLE INTO THOSE SECTORS.

OKAY.

SO I GUESS MY ISSUE OR MY CONCERN IS THAT WE'VE GOT A GOVERNMENT AGENCY THAT IS GOING TO PICK WHAT I THINK IS A PRIVATE SECTOR NAME. AND SO I, YOU KNOW, WHEN I, AND I'VE TALKED TO PEOPLE, YOU KNOW, THAT HAVE BEEN SUCCESSFUL BUSINESSMEN. I'VE TALKED TO CONSTITUENTS, AND THE PROBLEM THAT I'M FACED WITH IS I REALLY RESPECT YOU AND THE WORK THAT YOU DO AND YOUR BOARD, RIGHT? I MEAN, I THINK YOUR BOARD IS, I GUESS, VISIONARIES VERSUS RESPONDING TO, RIGHT? AND THAT'S HARD TO COME BY. AND SO I'M REALLY TORN ON THIS ITEM BECAUSE MY BELIEF IS THAT A GOVERNMENT AGENCY HAS WHAT THEY DO IN IT, RIGHT? BEHAVIORAL HEALTH IS THE BEHAVIORAL HEALTH DEPARTMENT. HUMAN SERVICE AGENCY, RIGHT? YOU DON'T HAVE TO ADVERTISE OR PROMOTE WHAT THEY DO. PEOPLE CAN GO TO THE COUNTY WEBSITE AND KNOW WHAT THEY DO, RIGHT? AND SO THAT'S WHERE MY STRUGGLE IS. PROSPERO IS A, I DON'T KNOW, I GUESS ULTIMATELY WOULD BE A BRAND NAME, RIGHT? WHICH I GET.

HOWEVER, I DON'T THINK IT TELLS PEOPLE WHAT THEY DO. AND ONE OF YOUR BOARD MEMBERS AND I MET AND, YOU KNOW, AND I KIND OF QUESTIONED THIS AND BASICALLY THE RESPONSE WAS, IS THAT, WELL, WE'RE GONNA PROMOTE IT, RIGHT? WE'RE GONNA ADVERTISE IT. AND SO, YOU KNOW, IF SOMEBODY MOVES TO MERCED COUNTY AND THEY'RE LOOKING FOR A JOB, YOU KNOW, NOBODY'S GOING TO TYPE IN PROSPERO, RIGHT? THEY'RE GOING TO TYPE IN WORKFORCE OR WORKFORCE DEVELOPMENT OR WORKNET OR EMPLOYMENT SERVICES OR SOMETHING ALONG THAT LINE.

AND SO THEN THEY'RE GOING TO HAVE, IF THIS DOES POP UP AS A WEBSITE ON A SEARCH THAT THEY COULD GO TO, THEY'VE GOT TO CLICK ON IT AND SEE WHAT IT MEANS, RIGHT, AND WHAT THEY DO. AND SO THAT'S MY STRUGGLE IS THAT IT'S IT'S JUST NOT A NAME THAT SAYS WHAT IT IS. AND EVERY OTHER COUNTY DEPARTMENT, EVERY OTHER THING WE DO HAS A PUBLIC NAME VERSUS A PRIVATE, WHAT I THINK IS A PRIVATE SECTOR NAME. AND SO THAT'S MY STRUGGLE. AND, YOU KNOW, LIKE I SAY, WHAT MAKES IT MORE DIFFICULT FOR ME IS I REALLY RESPECT THE WORK THAT YOU DO, RIGHT? BUT PHILOSOPHICALLY, I THINK, I'M ON THE OPPOSITE SIDE OF A NAME. ONE OF THE EXAMPLES THAT WAS GIVEN TO ME WAS MERCED COUNTY ASSOCIATION OF GOVERNMENTS, THE BUS, RIGHT? THE BUS SYSTEM, AND THAT IT WAS REBRANDED AS THE

[01:00:03]

RIGHT. SO, WELL, AND IF I COULD, NO DISRESPECT, BUT EVERYTHING THAT HE SAID, IF YOU SUM IT UP, WE'RE HELPING EVERY SEGMENT PROSPER.

OH NO, I GET THAT.

YEAH. I MEAN, AND THAT SUMS IT ALL UP INTO PROSPERO. I'M JUST, BUT THAT WOULD BE NICE AFTER 2 YEARS OF GOING THROUGH THIS ADVISOR, RIGHT? PROSPERO WOULD BE A GOOD NAME FOR THEM, RIGHT? YOU'RE GOING TO GIVE THEM YOUR MONEY TO, TO, YOU KNOW, I JUST, I JUST THINK THAT THAT IN OUR CASE, WE PROVIDE A SERVICE, RIGHT? A GOVERNMENT SERVICE, NOT A PRIVATE SECTOR SERVICE.

AND, WELL, YOU KNOW, SUPERVISOR, IF I CAN, I'D LIKE TO RECOGNIZE THE WORK THAT YOU'VE DONE FOR US. I MEAN, YOU'VE EVEN SPOKEN AND OPENED UP JOB FAIRS FOR US. YOU'RE ALWAYS THE ADVOCATE OF THE PERSON THAT IS LOOKING FOR A HAND UP, NOT A HANDOUT.

AND WE, WE TAKE THAT WORK REALLY SERIOUSLY. JUST SOME CONTEXT MAYBE ABOUT THE WAY THAT THE WORKFORCE BOARD WORKS.

BY DESIGN, EVERY FEDERAL WORKFORCE BOARD IS, HAS TO BE A MAJORITY OF BUSINESS-RUN. AND SO WE HAVE A BOARD THAT THEY'RE BY DESIGN ENTREPRENEURIAL PEOPLE THAT ARE CLOSEST TO INDUSTRY. SO THAT MAY BE WHY WE SAY THAT, SWAY THAT WAY. I'D ALSO LIKE TO GIVE SOME CONTEXT IN TERMS OF WORKFORCE BOARDS ACROSS THE STATE AND THE COUNTRY. MANY OF THEM ARE CALLED WORKFORCE AGENCY OF SARASOTA OR WHATEVER IT MIGHT BE, BUT MANY ARE NOT. SO SOME OF THE MOST SUCCESSFUL ONES, THERE'S ONE IN SILICON VALLEY THAT'S CALLED NOVA, N-O-V-A, BECAUSE OF THE NORTHERN VALLEY OF SILICON VALLEY. THERE ARE, THERE'S ANOTHER WORKFORCE BOARD IN THE NORTHERN PART OF THE STATE THAT'S CALLED NORTEC. I CAME FROM A WORKFORCE BOARD THAT WAS CALLED PACIFIC GATEWAY. SO THEY OFTEN TAKE ON THESE NAMES THAT ARE MORE INDUSTRY INDUSTRY-LED, VERSUS A GOVERNMENT AGENCY.

YOU KNOW, THIS ORGANIZATION, THE COUNTY, DID SOMETHING, REALLY PHENOMENAL, WHICH IS WHAT ATTRACTED ME TO THIS POSITION, IS THAT YOU MADE WORKFORCE ITS OWN DEPARTMENT. MOST TYPICALLY, WORKFORCE BOARDS ARE BURIED DEEP IN SOCIAL SERVICE AGENCIES, AND THAT DOES NOT ALLOW THEM TO HAVE THIS DIRECT INTERFACE WITH INDUSTRY. AND SO I BELIEVE THAT'S WHY MY BOARD CHOSE TO GO CLOSER TO THIS PRIVATE-SOUNDING BRAND.

IN FACT, WE HIT FRICTION WHEN WE INTRODUCE OURSELVES AS THE COUNTY DEPARTMENT OF WORKFORCE INVESTMENT BECAUSE WE SAY WE'RE FROM THE GOVERNMENT AND WE'RE HERE TO MAKE THINGS BETTER. THAT DOESN'T HELP US. WHEN WE CAN SHOW UP WITH THE SAME SORT OF SOPHISTICATION AS A STAFFING AGENCY OR AN INDUSTRY ASSOCIATION, IT JUST HELPS US OPEN DOORS A LITTLE FASTER.

BUT I, I RECOGNIZE YOUR COMMENTS AND OTHER AGENCIES HAVE DECIDED TO STAY SORT OF IN WHAT IS MOST OBVIOUS.

BUT I WILL SAY ON THE SORT OF, YOU KNOW, THE WEB SEARCHES AND THINGS LIKE THAT, THERE'S, YOU KNOW, SEARCH ENGINE OPTIMIZATION, WHICH MEANS IF YOU PLANT NAMES IN YOUR WEBSITE LIKE WORKFORCE DEVELOPMENT, IT IS WHAT TAKES YOU THERE. AS YOU KNOW, WORKNET WAS ALSO NOT SORT OF A NAME IN THE DICTIONARY THAT FOLKS WOULD KNOW TO SORT OF LOOK UP. SO WE ARE TALKING WITH THIS FIRM ABOUT ALL OF THESE WAYS.

LASTLY, I'D LIKE TO SAY THAT WE'RE ADOPTING, THAT UNDER PROSPERO, THERE IS A LITTLE TAGLINE THAT SAYS, A NO-COST SERVICE OF MERCED COUNTY. SO YOU'LL SEE THAT ON ALL OF OUR BUILDINGS AND AS OUR TAGLINE IN A LOT OF OUR WORK. THERE'LL ALSO BE A TEMPORARY TAGLINE OF "FORMERLY WORKNET" TO HELP PEOPLE TRANSITION OVER.

THAT MAY NOT CHANGE YOUR MIND, SUPERVISOR, BUT WANTED TO GIVE YOU THAT CONTEXT.

CONTEXT.

YEAH. SO THEN MY NEXT QUESTION IS, WHAT'S THE BUDGET TO REBRAND YOUR AGENCY? UH, WE, THERE'S TWO WAYS TO ANSWER THAT. ONE IS WE HIRED A FIRM, AND THAT FIRM COST ABOUT $70,000 TO BE ABLE TO DO THIS WORK, AND IT INCLUDED THE BRANDING AND THE LOGO, BUT ALSO THE STRATEGIC PLAN THAT WE DEVELOPED TO IDENTIFY AREAS OF OUR WORK THAT WE WANTED TO PURSUE. BUT THE TRANSITION OVER ACTUALLY REALLY, I WOULD ARGUE, DOESN'T HAVE A SPECIFIC SET-OUT COST BECAUSE WE ARE ALWAYS UPDATING OUR MATERIALS.

WE'RE ABOUT TO MOVE INTO NEW CENTERS, AND SO THAT NEW SIGN WILL GO UP WHERE NO OTHER SIGN EXISTED. SO WE HAVEN'T REALLY IDENTIFIED NEW COSTS THAT WOULD COME OUT OF THAT. WE WERE ALREADY SLATED TO REVAMP OUR WEBSITE, SO THERE'S, THERE'S NOTHING ABSOLUTELY NEW IN THE ROLLOUT, I WOULD ARGUE, THAT THAT IS DIFFERENT

[01:05:01]

I MEAN, THAT'S, I MEAN, I, I GUESS I'M NOT FOLLOWING. I'M NOT TRACKING.

WELL, IF SOMEBODY CHANGES THEIR NAME, THERE'S A COST TO THAT.

AND THEN, AND THEN YOU, YOU GOT, YOU KNOW, NOBODY KNOWS WHAT PROSPERO IS.

SO HOW ARE YOU GOING TO TELL PEOPLE WHAT PROSPERO IS? RIGHT. SO, SOCIAL MEDIA, HAS STAFF COST, ABSOLUTELY, BUT THERE ISN'T A HUGE OUTWARD COST. WE WERE, IF YOU GO TO MY WEBSITE RIGHT NOW, IT SAYS SORT OF A TEMPORARY WORKNET SITE. IT'S BEEN LIKE THAT FOR 18 MONTHS BECAUSE WE'VE ALREADY DECIDED THAT WE NEEDED A NEW WEBSITE. SO THAT WILL BE A NEW WEBSITE, BUT IT'S NOT BECAUSE OF THE BRAND CHANGE. WE'RE OPENING 4 NEW CENTERS. THOSE ARE NEW, AND SO THERE WOULD NEED TO BE A NEW SIGN ANYWAY, AND SO IT'S JUST GOING TO BE A NEW SIGN VERSUS PUTTING WORKNET ON THEM. SO I'M JUST TRYING TO SHARE THAT THERE ISN'T SORT OF AN EXPLICIT COST RELATED TO THAT.

OKAY, AND THEN MY LAST, I GUESS IT'S A QUESTION, BUT ONE OTHER CONCERN THAT I HAVE IS THAT THE WORD PROSPERO APPEARS TO BE LATIN-BASED, RIGHT? AND SO WE HAVE NON-LATINS, YOU KNOW, THAT LIVE IN OUR COMMUNITY.

AND SO IF I'M HMONG OR I'M INDIAN, YOU KNOW, I'M NOT GOING TO RESONATE WITH THAT WORD. AND SO WHAT HAVE YOU, I MEAN, HAVE YOU DISCUSSED THAT AND THOUGHT ABOUT THAT, THAT HAVING A WORD THAT COMES FROM ONE SECTOR OR ONE CULTURE IS GOING TO BE EITHER NOT NECESSARILY OFFENSIVE, BUT NOT INCLUSIVE TO OTHER CULTURES? YEAH, SO IT DOES HAVE, I SUPPOSE, A LATIN DERIVATIVE.

IT IS NOT A WORD IN SPANISH.

PROSPERO. YEAH, I KNOW THAT IS NOT, A WORD.

BUT IF I WERE TO TAKE THAT WORD OUT AND, AND ASK THE PEOPLE IN OUR AUDIENCE, YOU KNOW, WHAT'S, YOU KNOW, I MEAN, THEY'RE GOING TO THINK IT'S A LATIN WORD, RIGHT? I MEAN, NOT NECESSARILY SPANISH, BUT IT HAS THAT FLAVOR TO IT.

YEAH, WE, THAT IS NOT WHY WE SELECTED THAT NAME. THAT IS THE NAME THAT WE THOUGHT WAS INSPIRED BY THIS CONCEPT OF PROSPERITY AND PROSPERING WITHOUT CALLING IT PROSPERITY.

BUT I HEAR YOUR POINT THAT IT SOUNDS LIKE A LATIN WORD. WE DON'T FEEL LIKE IT'S EXCLUSIVE. WE DON'T HAVE THE SENSE THAT IT IS GOING TO EXCLUDE FOLKS FROM ACCESSING OUR SERVICES.

BUT WE ARE GOING TO DO A NUMBER OF THINGS IN OUR SOCIAL MEDIA AND OUR MARKETING TO BE ABLE TO COMMUNICATE THAT TO INDUSTRY PRIMARILY AND THEN SECONDARILY TO JOB SEEKERS.

AND I SAY THAT PRIMARILY BECAUSE JOB SEEKERS COME TO US BECAUSE THEY SEEK OUT THE RESOURCES THAT WE HAVE.

INDUSTRY AND BUSINESS IS REALLY THE MARKET THAT WE'RE TRYING TO TAP INTO AND DO A BETTER JOB OF ACCESSING.

YEAH, I MEAN, MY HERITAGE IS LATIN, RIGHT? I'M PORTUGUESE.

AND SO, YOU KNOW, I LIKE THE WORD, RIGHT? BUT IF I'M BEING HONEST, IF I WASN'T LATIN, THIS WORD WOULDN'T HAVE THE SAME FLAIR TO IT, I GUESS, IF YOU WANT TO USE IT. AND, YOU KNOW, I GUESS IT, I DON'T WANT US TO HAVE SOMEBODY NOT CALL FOR HELP THAT NEEDS IT BECAUSE IT'S A WORD THAT SEEMS LIKE IT WAS CREATED FOR THE LATIN COMMUNITY VERSUS THE PUNJABI COMMUNITY OR THE HMONG COMMUNITY OR, YOU KNOW, ANY OTHER COMMUNITY, YOU KNOW, THAT'S NON-LATIN. THAT LIVES IN MERCED COUNTY. AND IT'S A LARGE POPULATION. I DON'T KNOW, IT'S PROBABLY A THIRD OF THE PEOPLE THAT LIVE HERE.

SO ANYWAYS, THAT'S ANOTHER DEEP CONCERN, RIGHT? SO ANYWAY, SO I'M PROBABLY A NO VOTE. IF I'M READING THE TEA LEAVES, I SAY THIS PROBABLY PASSES, WHICH IS FINE. BUT ANYWAYS, MY THOUGHT IS THAT TAKE SOME OF THIS IN CONSIDERATION IF YOU'RE GOING TO DO SOMETHING AGAIN, I GUESS.

THANK YOU FOR THE CLARITY.

THANK YOU. CHAIR RECOGNIZES SUPERVISOR PACHECO.

JUST REAL QUICK, I MEAN, SEEMS LIKE IT'S ALL BEEN SAID. I JUST, I DO WANT TO SAY THANK YOU, AND I MEAN, YOU HAVE A GREAT DEPARTMENT.

YOU'RE ONE OF THE FIRST DEPARTMENT HEADS THAT I MET WHEN I CAME INTO OFFICE, AND I WAS VERY IMPRESSED WITH YOU AND YOUR DEPARTMENT.

AND I DO APPRECIATE YOU BEING UP HERE AND LETTING US KNOW HOW WE GOT HERE, HOPEFULLY SOME LESSONS LEARNED.

BUT I DO APPRECIATE YOU BEING HERE. I APPRECIATE, YOU REMEMBER REACHING OUT TO ME, LETTING ME HAVE MY CONCERNS.

SO YEAH, THANK YOU FOR THAT.

OKAY.

THANK YOU. AND I JUST HAVE TO SAY THAT BEING INVOLVED WITH IT FOR 2 YEARS AND THROUGH THIS, I WAS A LITTLE SURPRISED BY THE REACTION OF THE BOARD BECAUSE I WAS DEEP INTO IT. LIKE I SAID, VERY ROBUST CONVERSATIONS WITH LARGE ROOMS WITH A LOT OF PEOPLE AND A LOT OF, WHAT DO YOU CALL IT? POST-IT NOTES AND EVERYTHING ELSE GOING THROUGH THE PROCESS. SO YEAH, IT, IT, AND BECAUSE OF BROWN ACT, YOU KNOW, YOU CAN'T HAVE THOSE DISCUSSIONS. SO, UNDERSTAND THAT, YEAH, WE PROBABLY SHOULD HAVE GOT HERE A LITTLE SOONER, BUT AT THE SAME TIME, I, I WAS EXCITED ABOUT THE

[01:10:01]

AND SO IT KIND OF CAUGHT ME THAT WE DIDN'T UPDATE THE BOARD, AND I THOUGHT THE BOARD WOULD BE FINE WITH IT. AND YOU GOT TO THINK, A LOT OF TIMES THESE BOARDS TOO ARE SEPARATE.

THEY ARE COMPLETELY SEPARATE AS A NONPROFIT IN A LOT OF COUNTIES AND DIFFERENT AREAS. BUT OKAY, WELL, WE HAVE RECOMMENDATIONS. OH, WE DO STILL HAVE TO DO THAT.

WELL, AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT ON WORKFORCE INVESTMENT, ITEM NUMBER 57. THE PUBLIC COMMENT PERIOD FOR WORKFORCE INVESTMENT ITEM 57 IS NOW CLOSED. WE HAVE 3 OPTIONS UP HERE. I WILL ENTERTAIN A, WE HAVE RECOMMENDATION 1 IS APPROVE AND ADOPT THE PUBLIC-FACING REBRANDING OF MERCED COUNTY'S AMERICA'S JOB CENTERS FOR CALIFORNIA WORKFORCE NET TO PROSPERO. WE HAVE NUMBER 2, APPROVE AND ADOPT A PUBLIC-FACING REBRANDING THE MERCED COUNTY WORKFORCE DEVELOPMENT BOARD TO THE PROSPERO WORKFORCE BOARD. DID YOU COME UP WITH THESE RECOMMENDATIONS, ERIC? OR NUMBER 3, DIRECT STAFF TO MAINTAIN DEPARTMENT OF WORKFORCE INVESTMENT AS THE LEGAL, WE CAN ACCEPT ALL OF THEM. OKAY. OKAY, I DO HAVE A MOTION BY SUPERVISOR SILVEIRA AND A SECOND BY SUPERVISOR PACHECO. WE'LL BRING IT BACK TO THE DAIS. IS THERE ANY OTHER DISCUSSIONS? IF NOT, I WILL CALL FOR THE VOTE.

RECORD THE VOTE.

MOTION PASSES. THAT WAS A GREAT CONVERSATION UP HERE, GUYS.

NEXT WE HAVE COUNTY EXECUTIVE OFFICE.

ITEM 58.

AT THIS TIME, CEO HENDRICKSON WILL PROVIDE OPENING COMMENTS AND WE WILL TURN IT OVER TO THE BALDWIN GROUP FOR THE EMPLOYEE HEALTHCARE PLAN EVALUATION AND ANALYSIS PRESENTATION.

GOOD MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD. I WOULD LIKE TO BEGIN WITH JUST A BRIEF OPPORTUNITY TO THANK THIS BOARD FOR ITS LEADERSHIP AS FOR THE PAST SEVERAL YEARS IT HAS CONSISTENTLY EXPRESSED CONCERN REGARDING THE RISING COST OF HEALTHCARE HEALTHCARE AND THE IMPACT THOSE COSTS HAVE ON OUR EMPLOYEES AND THE COUNTY'S FINANCIAL SUSTAINABILITY. AS WE ALL KNOW, HEALTHCARE COSTS CONTINUE TO INCREASE NATIONWIDE, CREATING CHALLENGES FOR PUBLIC AGENCIES SEEKING TO PROVIDE COMPETITIVE, HIGH-QUALITY BENEFITS WHILE ALSO BEING RESPONSIBLE STEWARDS OF TAXPAYER RESOURCES. LAST AUGUST, AT THE DIRECTION OF THIS BOARD, WE INITIATED A COMPREHENSIVE INDEPENDENT EVALUATION OF THE COUNTY'S HEALTHCARE BENEFITS PROGRAM.

THE PURPOSE WAS VERY STRAIGHTFORWARD. IT WAS TO OBTAIN AN OBJECTIVE, DATA-DRIVEN ASSESSMENT OF OUR CURRENT PLANS, TO IDENTIFY THE PRIMARY COST DRIVERS, TO EVALUATE PLAN PERFORMANCE, TO BENCHMARK OUR OFFERINGS AGAINST OTHER COMPARABLE AGENCIES, AND TO EXPLORE OPPORTUNITIES TO IMPROVE THE VALUE FOR BOTH EMPLOYEES AND FOR THE COUNTY. TODAY'S PRESENTATION REPRESENTS THE CULMINATION OF THAT EFFORT.

THE ANALYSIS THAT WILL BE PROVIDED TO YOU WAS CONDUCTED INDEPENDENTLY AND IS INTENDED TO PROVIDE A CLEAR AND UNBIASED EXAMINATION OF OUR HEALTHCARE PROGRAM. IT INCLUDES A REVIEW OF OUR UTILIZATION TRENDS, PLAN COST, BENCHMARKING DATA, AND POTENTIAL STRATEGIES THAT MAY HELP US MANAGE FUTURE HEALTHCARE EXPENDITURES WHILE CONTINUING TO OFFER COMPETITIVE BENEFITS TO OUR WORKFORCE. AS HEALTHCARE COSTS CONTINUE TO RISE, IT IS INCUMBENT UPON US TO EVALUATE EVERY OPPORTUNITY TO MAINTAIN A STRONG BENEFITS PACKAGE, SUPPORT OUR EMPLOYEES AND THEIR FAMILIES, AND TO PRESERVE THE COUNTY'S LONG-TERM FISCAL HEALTH. IT IS ALSO IMPORTANT FOR US TO OPENLY AND TRANSPARENTLY SHARE WITH OUR EMPLOYEES THE AREAS THAT WE DO NOT CONTROL, FOR EXAMPLE, THE MARKET, AND THOSE THINGS THAT WE DO CONTROL, LIKE OUR PERSONAL DECISIONS THAT POTENTIALLY CAN DRIVE UP UTILIZATION AND COST.

SO I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK OUR TEAM, OUR CONSULTANT, AND THE MANY STAFF WHO CONTRIBUTED INFORMATION AND FEEDBACK THROUGHOUT THIS PROCESS. THEIR EFFORTS HAVE ULTIMATELY HELPED PROVIDE THIS BOARD WITH VALUABLE INFORMATION, I BELIEVE, THAT WILL ASSIST IT IN SHAPING FUTURE DISCUSSIONS REGARDING EMPLOYEE HEALTHCARE BENEFITS. AND WITH THAT, MR. CHAIRMAN, I WOULD LIKE TO TURN IT OVER TO MR. MARIONI, OUR CONSULTANT, TO MAKE TODAY'S PRESENTATION.

THANK YOU, SIR.

THANK YOU.

THANK YOU. GOOD MORNING, CHAIR AND MEMBERS OF THE BOARD, CEO HENDRICKSON AND COUNTY COUNSEL HANSON. DAVID MARIONI, ASSISTANT COUNTY EXECUTIVE OFFICER. SO CONSISTENT WITH YOUR BOARD'S COMMITMENT TO SUPPORTING THE WELL-BEING OF

[01:15:01]

OVER THE PAST SEVERAL MONTHS, THE BALDWIN GROUP HAS CONDUCTED AN EXTENSIVE EXTENSIVE REVIEW OF OUR HEALTHCARE PROGRAM, INCLUDING AN ANALYSIS OF CURRENT HEALTH PLANS, COSTS, UTILIZATION TRENDS, AND OVERALL PROGRAM STRUCTURE.

AND THE STUDY ALSO INCLUDES COMPARATIVE BENCHMARKING OF PLAN DESIGNS AND EMPLOYER, EMPLOYEE, AND EMPLOYEE COSTS AMONG NEIGHBORING COUNTIES AND CITIES TO EVALUATE THE COUNTY'S COMPETITIVENESS WITHIN THE MARKETPLACE.

IN ADDITION, THE BALDWIN GROUP REVIEWED ALTERNATIVE FUNDING MODELS EVALUATED OPPORTUNITIES TO ENHANCE OUR EMPLOYEE ENGAGEMENT AND BENEFITS EDUCATION, AND ASSESSED OUR RETIREE HEALTHCARE OPTIONS, INCLUDING RETIREE BLENDING PRACTICES AND OTHER STRATEGIES THAT MAY IMPACT BOTH OUR ACTIVES AND OUR RETIREES. THE PRESENTATION YOU WILL HEAR TODAY REFLECTS A COMPREHENSIVE ANALYSIS OF OUR HEALTHCARE PLAN AND INCLUDES SEVERAL ACTIONABLE RECOMMENDATIONS FOR YOUR BOARD'S CONSIDERATION.

BEFORE TURNING THE PRESENTATION OVER TO TINA, I WOULD LIKE TO JUST RECOGNIZE THE SIGNIFICANT CONTRIBUTIONS OF OUR RISK MANAGEMENT AND BENEFIT TEAMS, AS WELL AS OUR PARTNERS AT ALLIANT, WHOSE COLLABORATION AND SUPPORT WERE INSTRUMENTAL THROUGH THIS PROCESS. WE APPRECIATE THE CONSIDERABLE EFFORT THAT HAS GONE INTO THIS ANALYSIS AND ARE LOOKING FORWARD TO THE DISCUSSION.

AT THIS TIME, I'D LIKE TO INVITE TINA TO PRESENT THE FINDINGS AND RECOMMENDATIONS FOR YOUR BOARD CONSIDERATION.

TINA.

THANK YOU VERY MUCH. GOOD MORNING STILL. IT HAS BEEN MY PLEASURE TO WORK WITH THE TEAM FOR A CONSIDERABLE PERIOD OF TIME IN COMING UP WITH THIS RECOMMENDATION. AS WE HAVE TALKED ABOUT IN THE INTRODUCTION, THERE'S A LOT OF INFORMATION THAT WE'RE GOING TO GET THROUGH TODAY, AND SO I APPRECIATE YOUR PATIENCE AS WE GO THROUGH ALL OF THESE DIFFERENT DIFFERENT EXHIBITS.

THIS ONE.

FROM AN AGENDA PERSPECTIVE, WE ARE GOING TO GO THROUGH AND TALK ABOUT THE PURPOSE OF THE PROJECT, THE BENCHMARKING. WE'VE BROKEN THIS DOWN INTO MULTIPLE DIFFERENT CATEGORIES TO TRY AND MAKE IT A LITTLE BIT EASIER TO ABSORB AS WE GO THROUGH THE PROCESS. THE FIRST THING WE'RE GOING TO HIT THOUGH IS THE HEALTHCARE LANDSCAPE.

AS CO HENDRICKSON SAID, THIS IS SOMETHING THAT IS NOT JUST HAPPENING IN MERCED COUNTY.

THIS IS SOMETHING THAT'S HAPPENING ACROSS THE NATION.

IT'S HAPPENING ACROSS ALL OF CALIFORNIA. HERE'S SOME OF THE 5, YOU KNOW, FACTORS THAT ARE DRIVING THIS: RISING HEALTHCARE COSTS. WE ARE NOT SEEING ANY TYPE OF LOWERING IN TREND. SO TREND CONTINUES TO BE ANYWHERE FROM 6.5% TO 10%, HIGHER THAN THAT WHEN YOU'RE TALKING ABOUT PRESCRIPTION DRUGS. ONE OF THOSE THINGS THAT'S DRIVING THAT IS THE GLP-1 WATER USAGE.

WE ARE GOING TO TALK A LOT ABOUT THAT AND HOW THAT IMPACTS SPECIFICALLY MERCED COUNTY, BUT IT IS A BIGGER ISSUE THAT WE FACE ACROSS CALIFORNIA AND AGAIN THE UNITED STATES. WE DO HAVE SOME LEGISLATIVE CHANGES WITH HR 1 THAT IS IMPACTING THE ABILITY FOR, YOU KNOW, MEDICAID AND COVERAGE THAT THEN FUNNELS DOWN INTO THE HOSPITAL SYSTEMS THAT ULTIMATELY FUNNELS DOWN INTO THE EMPLOYER PREMIUMS THAT ARE PAID FOR COVERAGE. SO WE CAN'T JUST IGNORE WHAT'S HAPPENING ON THAT BASIS AS WELL.

SPECIALTY DRUGS, NOT JUST THE GLP-1S, BUT WE HAVE A LOT OF SPECIALTY DRUGS. WE'LL TALK ABOUT LIKE DRUGS FOR MS AND THINGS OF THAT NATURE. THEY'RE VERY EXPENSIVE IN NATURE, VERY NEEDED, BUT ALSO VERY EXPENSIVE. ALSO FERTILITY BENEFITS, THOSE WERE EXPANDED IN THE STATE OF CALIFORNIA.

THOSE ADDED ABOUT 1 TO 2% ON THE COST OF OVERALL HEALTHCARE WITHIN THE STATE. SO THERE'S A LOT OF DIFFERENT FACTORS AGAIN THAT ARE IMPACTING NOT JUST MERCED COUNTY BUT EVERYTHING IN GENERAL. SO THERE ARE THINGS THAT ARE IN OUR CONTROL AND THINGS THAT ARE NOT IN OUR CONTROL. WHEN IT COMES TO THE PURCHASING OPTIONS THAT YOU GUYS HAVE, THERE'S A COUPLE OF WAYS THAT YOU CAN PURCHASE HEALTHCARE.

YOU CAN GO DIRECT TO MARKET.

SO IF YOU WANTED TO, YOU COULD GO OUT TO ANTHEM, BLUE SHIELD, AETNA, WHOMEVER YOU WANTED TO AND SAY, I WANT TO HAVE A CONTRACT DIRECTLY WITH YOU. IN THAT, YOU YOU CAN THEN CHOOSE WHETHER I WANT TO BE FULLY INSURED OR I WANT TO BE SELF-FUNDED, AND WE'LL TALK IN A LITTLE BIT ABOUT WHAT THE DIFFERENCES IN THOSE ARE. OR YOU CAN PURCHASE THROUGH POOLS.

THERE'S A LOT OF POOLS THAT ARE OUT THERE AND AVAILABLE. SOME OF THE ONES THAT ARE AVAILABLE TO PUBLIC AGENCIES,

[01:20:01]

WE'RE GOING TO TALK MORE ABOUT WHAT THAT POOL IS AND THE BENEFITS THAT YOU GUYS GET FROM THAT POOL. YOU CAN DO OTHER THINGS LIKE CALPERS, WHEREAS CALPERS IS OBVIOUSLY A POOL, OPERATES ACROSS THE ENTIRE STATE. THE RATES ARE BROKEN DOWN BY REGION, AND SO INDIVIDUAL AGENCIES DON'T HAVE THEIR OWN RATES. THE RATES ARE THE SAME DEPENDING ON WHAT REGION YOU'RE LOCATED IN. WITHIN PRISM HEALTH, THIS IS REALLY A BLEND OF FULLY INSURED AND SELF-INSURED. SO PRISM HEALTH ITSELF IS SELF-INSURED. SO THEY CAN SET A LOT OF THE PARAMETERS REGARDING THE PROGRAM. HOW IT ROLLS OUT TO THE COUNTY ITSELF IS MORE TYPICAL OF A FULLY INSURED ARRANGEMENT, MEANING THAT PRISM SETS A RATE FOR YOU, YOU PAY THAT RATE IN FULL, AND THEN PRISM HOLDS ALL OF THE RISK IN THAT PROGRAM.

THEY ARE WORKING WITH YOU GUYS REGARDING PLAN DESIGN AND THEN SPREADING THAT RISK REALLY ACROSS THE ENTIRE PRISM POOL.

THERE'S SOME THINGS THAT YOU GUYS TAKE ADVANTAGE OF BEING IN THAT POOL, AND THEN THERE'S SOME THINGS THAT BECAUSE YOU ARE A LARGE ENOUGH COUNTY THAT YOU REALLY DO STAND ON YOUR OWN, AND THE ACTUAL INDIVIDUAL CLAIMS EXPERIENCE OR UTILIZATION OF YOUR EMPLOYEES AND YOUR MEMBERS IS WHAT REALLY IMPACTS AND DRIVES THE COST OF YOUR PROGRAMS. IN ADDITION, YOU GET SOME MEMBER BENEFITS THROUGH PRISMHEALTH. THOSE ARE LISTED HERE. I'M NOT GONNA GO THROUGH THOSE IN DETAIL. IF YOU WANT TO, YOU CAN GO OUT TO THE PRISMHEALTH WEBSITE IT HAS ALL KINDS OF DESCRIPTIONS REGARDING THESE DIFFERENT PROGRAMS. SOME OF THESE PROGRAMS HAVE BEEN AROUND FOR A WHILE, SOME OF THEM ARE NEW THIS YEAR, BUT BASICALLY THEY'RE MEANT TO HELP CONTROL COSTS AND TO CHANGE BEHAVIOR. SO THAT'S REALLY WHAT WE'RE TALKING ABOUT IN, IN THE SCOPE OF THINGS IS HOW DO WE CHANGE BEHAVIOR, HOW DO WE GET THE HEALTHCARE COSTS UNDER CONTROL. SO THE PURPOSE OF THE PROJECT, THE BOARD CAME UP WITH A VERY DETAILED SCOPE OF SERVICES. I HAVE TO SAY THAT YOUR RISK MANAGEMENT, YOUR HEALTH, YOU KNOW, HUMAN RESOURCES, EVERYBODY HAS MADE SURE THAT MY ORGANIZATION HAS KEPT VERY CLOSE TO THAT SCOPE OF SERVICES. SO AS WE WALK THROUGH THIS, WE DID BREAK IT DOWN INTO THIS WHERE WE'RE GOING TO TALK ABOUT THE RENEWAL HISTORY. SO BASICALLY, IS THE AMOUNT THAT YOU GUYS ARE PAYING APPROPRIATE? HAS PRISM AND THROUGH ALLIANT CHARGED YOU THE APPROPRIATE AMOUNT FOR YOUR RATES OVER ALL OF THESE YEARS. TALK ABOUT THE MEDICAL PERFORMANCE AND LANDSCAPE. SO HOW IS THE COUNTY ACTUALLY PERFORMING IN AND OF ITSELF, BENCHMARKING AGAINST OTHER CITIES AND COUNTIES IN THE AREA. AND THEN WE DID DO A MARKETING TO SEE, COULD WE HAVE DONE BETTER? IS THERE SOMETHING BETTER OUT THERE THAT WE'RE MISSING? AND THEN ULTIMATELY, THE RECOMMENDATIONS AND THE STRATEGIES. SO WE'RE GOING TO START WITH THAT RENEWAL HISTORY. SO FOR THE RENEWAL HISTORY, WE WERE ASKED TO WE TAKE A LOOK AT A 5-YEAR PERIOD OF TIME. SO WE PUT THIS JUST, YOU KNOW, IN A, IN A GRAPH SHOWING THE 5 YEARS BY PLAN OVER THAT PERIOD. IT AVERAGES OUT TO ABOUT 8.1% YEAR OVER YEAR. IF YOU LOOK AT THAT IN COMPARISON TO MULTIPLE AGENCIES THAT PRODUCE, LIKE THE KAISER FAMILY FOUNDATION AND OTHER SOURCES ACROSS THE STATE OF CALIFORNIA, IT'S BEEN ABOUT AN AVERAGE OF 7%. SO YOU GUYS ARE RIGHT THERE, NOT TOO FAR OFF OF WHERE ARE FROM A CALIFORNIA AVERAGE OVER THAT 5-YEAR PERIOD OF TIME. SO YOU'RE NOT TRENDING A WHOLE LOT DIFFERENT THAN WE'RE SEEING OUT THERE IN THE MARKET.

BEFORE WE START TALKING ABOUT WHETHER YOUR RATES WERE APPROPRIATE OR NOT, WE NEED TO UNDERSTAND WHAT MAKES A RATE.

SO OF THAT DOLLAR THAT YOU'RE PAYING TO PRISM HEALTH, WHAT IS THAT DOLLAR MADE UP OF? AND WE HAVE THE COMPONENTS BROKEN DOWN HERE. SO THE AFFORDABLE CARE ACT, WHICH IS THE ACA.

THERE ARE CERTAIN FEES THAT ARE ASSOCIATED WITH THAT. THE FEES ARE A LITTLE BIT DIFFERENT IF YOU'RE FULLY INSURED VERSUS SELF-FUNDED AND SOME THINGS THAT ARE STRUCTURED AROUND THAT. YOU HAVE ADMINISTRATIVE CHARGES. SO THIS GOES FOR THE ANTHEM REPRESENTATIVE WHO'S PAYING THE CLAIMS, PICKING UP THE PHONE, CONTRACTING WITH THE PROVIDERS. IT'S PAYING FOR ALLIANCE ADVICE, IT'S PAYING FOR PRISM'S ADVICE. ALL OF THOSE INDIVIDUALS MAKE UP THAT ADMINISTRATIVE CHARGE. THEN YOU HAVE WHAT WE CALLED POOLING CHARGES. IT'S ALSO KNOWN IN A SELF-FUNDED WORLD AS STOP LOSS.

WE'RE GONNA TALK ABOUT WHAT THAT MEANS AND WHAT PROTECTIONS YOU GET FROM THAT.

BUT IT MAKES UP ABOUT 6 CENTS OR SO OF EVERY DOLLAR THAT YOU GUYS PAY INTO PREMIUM. DOWN AT THE BOTTOM, THIS IS IN A TYPICAL RATE, YOU WOULD NORMALLY HAVE A 3 TO 5% MARGIN. THAT'S REALLY JUST A ROOM FOR ERROR. SO IF I MISJUDGE, DO I HAVE ENOUGH IN RESERVE IN ORDER TO PAY FOR THINGS? I'M NOT 100% SURE WHAT PRISM IS DOING ON THEIR MARGIN, BUT THE AVERAGE IS ABOUT 3 TO 5% ON THAT MARGIN. THAT RE, LEAVES THE REMAINDER OF ABOUT 83 TO 85% FOR ACTUAL MEDICAL CLAIMS. SO AS WE'RE GOING THROUGH THIS, WHAT'S REALLY IMPORTANT ABOUT THAT IS YOU'RE LOOKING AT AN 85% LOSS RATIO, MEANING THAT FOR EVERY DOLLAR YOU SEND THEM, THEY'RE SPENDING 85 CENTS IN CLAIMS, AND THAT'S THE TARGET THAT THAT WE'RE GONNA LOOK AT TO SAY WHETHER YOUR RATES WERE APPROPRIATE OR NOT, AND HOW CAN WE GET THAT 85% NUMBER DOWN LOWER SO THAT WE

[01:25:01]

THAT POOLING CHARGE AGAIN IS WORTH ABOUT 6% OF YOUR RATE, BUT WHAT IT DOES IS IT SAYS ANY CLAIMS IN EXCESS, IN THIS PARTICULAR YEAR IT'S SET AT JUST ABOVE $400,000, ANY CLAIMS IN EXCESS OF THAT $400,000 ARE NOT CHARGED AGAINST MERCED COUNTY WHEN THEY'RE LOOKING AT HOW DID OUR PLAN PERFORM.

SO IN LOOKING AT IT, YOU CAN SEE THERE'S A PRETTY SUBSTANTIAL DIFFERENCE BETWEEN '24 AND '27. YOU HAD 71 CLAIMS VERSUS 47. WE'RE LOOKING AT, YOU KNOW, $20 MILLION VERSUS $11 MILLION.

AND THAT'S WHY YOU HAVE STOP-LOSS OR POOLING PROTECTION, BECAUSE THOSE NUMBERS CAN FLUCTUATE EXTREME WHEN YOU'RE TALKING ABOUT VARIOUS CONDITIONS AND THINGS THAT CAN HAPPEN. SO IN THIS, YOU GUYS RECEIVED IN '24 '24 AND '25 A CREDIT BACK OF $5.8 MILLION AND $2.3 MILLION. SO THAT 6% THAT YOU PAID FOR, THAT'S THE CREDIT BACK YOU GOT WHEN WE'RE DOING THE ANALYSIS AND THAT WILL COME INTO PLAY WHEN WE'RE LOOKING AT DID YOU GUYS PERFORM WELL AND ARE THE RATES APPROPRIATE? IN ADDITION TO THAT, WHAT'S ALSO IMPORTANT IS LOOKING AT HOW EACH OF THE PLANS OPERATED. SO IF I TOOK A LOOK AT THIS AND SAID MY, THESE ARE THE PLANS YOU HAVE, THE ANTHEM EPO2, YOU'VE GOT THE 500, THE HIGH DEDUCTIBLE PLAN, THE HDHP WITH NO HSA, THAT'S HIGH DEDUCTIBLE HEALTH PLAN WITHOUT A HEALTH SAVINGS CONTRIBUTION BY THE COUNTY TO THE HSA. THAT IS KIND OF YOUR DEFAULT PLAN IF YOU DON'T HAVE, THE COUNTY DOES NOT ALLOW OPT-OUTS OR WAIVERS AND SO A LOT OF PEOPLE ARE IN THAT PLAN. IN ADDITION TO THAT, YOU HAVE YOUR RETIREES. WHAT'S REALLY IMPORTANT AS YOU'RE LOOKING AT THIS IS THE NUMBER THAT'S SITTING OVER THERE, THIS NUMBER RIGHT HERE ON THE FAR RIGHT-HAND SIDE.

THAT'S YOUR LOSS RATIO NUMBER.

SO IN THAT LOSS RATIO NUMBER, YOU CAN SEE LIKE THE 1500 PLAN, IT'S RUNNING AT ABOUT 82%. SO IT'S RUNNING FAIRLY CLOSE TO WHERE THEY TARGET IT AND WHERE THEY WANT IT TO BE. THE OTHER PLAN'S RUNNING 89%. YOUR HIGH DEDUCTIBLE HEALTH PLANS ARE RUNNING VERY, VERY WELL. PART OF THAT IS PROBABLY BECAUSE ONE, THEY'VE GOT SOME SKIN IN THE GAME, RIGHT? THEY'VE GOT MONEY IN THAT HEALTH SAVINGS ACCOUNT AND THEY'RE TRYING TO MANAGE THEIR HEALTH TO WHERE THEY CAN ROLL MONEY FORWARD INTO FUTURE YEARS.

BUT THEN YOU ALSO HAVE, YOU KNOW, THIS POPULATION DOWN HERE AT 22%. THAT'S IMPORTANT LATER WHEN WE TALK ABOUT YOUR OPT-OUTS. SO YOUR PEOPLE IN THAT PLAN ARE ONLY SPENDING ABOUT 22 CENTS OF EVERY DOLLAR THAT'S COMING IN. SO ONE SAYS, WELL, LET'S JUST ELIMINATE THE PLAN THEN. WELL, WE ALSO HAVE TO LOOK AT THAT 22% BROUGHT THIS LOSS RATIO DOWN TO 88. IF JUST MATH WILL TELL YOU, IF I REMOVE A 22%, THE 88 IS GOING TO GO UP, RIGHT? SO IF WE JUST REMOVE THAT NUMBER, IT DOES HAVE A TRICKLE-DOWN EFFECT ON THE REST OF THE POPULATION. ONE THING THAT'S REALLY IMPORTANT HERE IS WHEN WE LOOK AT THE RETIREES VERSUS THE ACTIVES. THIS IS INCLUSIVE OF LARGE CLAIMS, SO WE HAVE NOT REMOVED THE 5.

$2.8 MILLION OR THE $2.3 MILLION FROM THIS, SO THIS INCLUDES LARGE CLAIMS. BUT WHEN YOU'RE LOOKING AT THAT, YOUR RETIREES ARE SPENDING $1.66 OR $1.24 FOR EVERY DOLLAR THAT'S BEING SPENT ON THE RETIREE PREMIUMS. THAT HAS AN IMPACT WHEN WE'RE TALKING LATER ABOUT YOUR OPEB LIABILITIES AND WHAT YOU GUYS NEED TO HAVE IN RESERVE TO COVER THOSE EXTENDED LIABILITIES. OVERALL, YOU WERE LOOKING AT ABOUT A 95% LOSS RATE LOSS RATIO FOR LAST CALENDAR YEAR, INCLUSIVE OF LARGE CLAIMS. SO WE'LL TALK ABOUT REMOVING THOSE LARGE CLAIMS. IF WE LOOK AT THE LOSS RATIO FROM A 5-YEAR HISTORY PERSPECTIVE, THIS IS HOW THE ACTIVES VERSUS THE RETIREES, WE'RE NOT GOING TO GO THROUGH ALL OF THESE NUMBERS HERE. MOST IMPORTANTLY ON THIS PAGE, IF YOU'RE GOING TO LOOK OVER HERE, AGAIN, FAR RIGHT-HAND SIDE, IF WE REMOVE THE LARGE CLAIMS, THIS IS WHAT THAT 6% PROTECTION PROVIDED YOU.. INSTEAD OF HAVING AN 88% LOSS RATIO BACK IN 2021, YOU HAD AN 84%.

SO YOU SPENT, YOU GOT A 4%, YOU SPENT 6%. WELL, IF YOU FAST FORWARD UP HERE TO 2024 WHEN YOU HAD THAT SUPER, SUPER LARGE YEAR OF LARGE CLAIMS, YOU GUYS WOULD HAVE HAD 108% LOSS RATIO. THAT INSURANCE PROTECTION WITHIN THE INSURANCE BROUGHT YOU DOWN TO A 95% LOSS RATIO.

SO IT'S IMPORTANT TO HAVE THAT OVERALL PROTECTION AND THAT PROTECTION IS A LITTLE BIT LESS EXPENSIVE. WE'LL TALK ABOUT THAT BECAUSE YOU'RE IN THAT POOL WITHIN PRISM.

OKAY, SO THEN IF WE LOOK AT WERE THE RATES THAT WE RECEIVED APPROPRIATE, BOTTOM LINE, YES, THEY WERE. SO IF YOU'RE LOOKING AT THIS, LOOKING HERE, IF I'M GAUGING MY RATES, LET'S

[01:30:01]

SO IF YOU LOOK HERE, 2021 AT 84% REALLY GENERATED THIS 8.7% IN 2023. THEN IF YOU'RE LOOKING HERE, THIS 80%, WHICH IS A GREAT ONE, GENERATED 4%. BECAUSE REMEMBER, EVEN THOUGH OUR TARGET IS 85%, WE STILL HAVE MEDICAL TREND AND INFLATION THAT WE HAVE TO KEEP UP WITH. IF YOU'RE LOOKING HERE WHERE YOU HAD A 91%, YOU GENERATED A 12.2%. SO YOU CAN SEE YOUR, YOUR LOSS RATIO THAT YOU HAD AS A COUNTY HAS A DIRECT IMPACT ON THE RATE INCREASE THAT YOU GUYS RECEIVED. NOW, WHAT ARE THE PROTECTIONS OF THE POOL? WHY ARE WE WITH PRISM VERSUS WHY DON'T WE JUST GO OUT ON OUR OWN? ONE OF THE THINGS THAT PRISM DOES, AND YOU GUYS OPERATED FAIRLY CLOSE TO WHAT THE PRISM POOL OPERATED AT, BUT THE PRISM POOL, WHOOPS, I WENT RIGHT PAST WHERE I WANTED TO. SO THE PRISM POOL RIGHT HERE DOES OFFER YOU A 7.5% OVERALL PROTECTION. SO IF THIS NUMBER HERE HAD BEEN GREATER THAN 7.5% VARIANCE FROM THE OVERALL POOL, PRISM WOULD HAVE BACKED YOUR RATE DOWN AND KIND OF THE POOL WOULD HAVE ABSORBED ANYTHING DIFFERENT FROM THAT. SO YOU DO HAVE SOME PROTECTION IN BEING PART OF THAT LARGER ORGANIZATION.

RIGHT NOW YOU GUYS OPERATED AT ABOUT A 90% LOSS RATIO IN 2025. YOU'RE GOING TO PROBABLY HAVE AN INCREASE SOMEWHERE IN EXCESS OF 10%. NOW, YOU'VE HAD SOME OBVIOUS, SOME CLAIMS THAT HAPPENED IN JANUARY, FEBRUARY, MARCH THAT ARE NOT FACTORED INTO HERE.

YOU HAVE THE POOL TO CONSIDER. THERE'S A LOT OF THINGS OUT THERE, BUT YOU'RE PROBABLY LOOKING MINIMUM 10%, SOMEWHERE UP TO ABOUT 15%, JUST BASED SIMPLE, SIMPLE MATH OF WHAT YOUR LOSS RATIO IS, WHAT THE TARGET LOSS RATIO IS, AND WHAT MEDICAL TREND IS. ONE OF THE THINGS WE WERE ALSO ASKED TO LOOK AT WAS A SELF-FUNDED ALTERNATIVE.

SHOULD WE BE SELF-FUNDED? WHAT DOES THAT LOOK LIKE? WOULD WE HAVE SAVED ANY MONEY? IF YOU'RE LOOKING AT SOMETHING THAT IS UNDERWRITTEN APPROPRIATELY ON A FULLY INSURED BASIS OVER A 5 TO 10 YEAR PERIOD OF TIME AND SOMETHING THAT IS SELF-FUNDED OVER THAT SAME 5 TO 10 YEAR PERIOD OF TIME, YOUR NUMBERS SHOULD NOT BE THAT DIFFERENT. AGAIN, IF IT'S RATED APPROPRIATELY. YOUR PLAN HAS BEEN RATED APPROPRIATELY.

NOW, ARE THERE THINGS THAT YOU MIGHT HAVE TAKEN ADVANTAGE OF BY BEING SELF-FUNDED? ABSOLUTELY. SO THERE'S THINGS THAT COULD HAVE BEEN DIFFERENT IN THAT A PRO YOU CAN SEE HERE IS YOU GET IMMEDIATE ADVANTAGE IN A GOOD YEAR. SO IF I HAVE A YEAR WHERE MY LOSS RATIO IS REALLY, REALLY LOW, I DON'T HAVE TO WAIT 2 YEARS IN ORDER TO SEE I GET TO SEE THAT MONEY IN MY POCKET. I GET TO INVEST THAT MONEY. I GET TO EARN THE INTEREST ON IT. I GET TO INVEST, YOU KNOW, ALL OF THAT TYPE OF STUFF. ON THE FLIP SIDE OF THAT, WE HAVE A BAD YEAR, YOU'RE GOING TO FEEL IT ALSO IMMEDIATELY.

YOU GUYS HAPPEN TO HAVE FAIRLY GOOD YEARS, SO YOU PROBABLY WOULD HAVE COME OUT OKAY. DIRECT ADVANTAGE OF PHARMACY REBATES. IN THE PHARMACY BENEFIT MANAGEMENT OR PBM WORLD, THERE'S A LOT OF DIFFERENT SHELLS THAT MOVED AROUND. ONE OF THOSE THINGS IS IS CALLED PHARMACY REBATES.

THE PHARMACIES GIVE REBATES BACK, OR THE DRUG MANUFACTURERS GIVE REBATES BACK FOR CERTAIN PRESCRIPTIONS THAT ARE WRITTEN.

IN THE ENVIRONMENT THAT YOU GUYS ARE IN WITHIN PRISM HEALTH, THOSE REBATES THAT ARE GIVEN BACK ARE RETURNED BACK TO THE POOL. THEY'RE NOT DIRECTLY CREDITED BACK TO MERCED COUNTY. HOWEVER, MERCED, OR THE PRISM HEALTH, USES THAT MONEY TO HELP OFFSET THE POOLING CHARGES, HELP OFFSET THOSE ADDITIONAL PROGRAMS THAT YOU GET. SO YOU GUYS ARE STILL GETTING ADVANTAGE OF IT, YOU'RE JUST NOT GETTING THE DIRECT BOTTOM LINE DECREASE ON YOUR CLAIMS FROM IT. UM, MORE FLEXIBILITY.

SO IF YOU HAD BEEN SELF-FUNDED, YOU MIGHT HAVE BEEN ABLE TO REACT FASTER TO SOME OF THE THINGS THAT YOU'RE SEEING IN THE UTILIZATION, THEREFORE HELPING TO LOWER THE TREND OF WHAT'S HAPPENING. UM, BUT ON THE FLIP SIDE, AGAIN, THAT CLAIM FLUCTUATION AND THE RISK, YOU HAVE TO BE WILLING TO TAKE THAT RISK. AND WE'LL TALK ABOUT WHAT THAT CLAIM CORRIDOR AND THAT RISK LOOKS LIKE. BUT BOTTOM LINE, WOULDN'T HAVE MADE A HUGE DIFFERENCE UNLESS YOU HAD PULLED SOME LEVERS WITHIN THAT SELF-FUNDING AND KIND OF CHANGED SOME OF THE UTILIZATION PATTERN.

BUT FROM JUST A PURE FINANCE PERSPECTIVE, YOU WOULD HAVE COME OUT ABOUT THE SAME. SO IF WE'RE LOOKING THEN, WE ALREADY TALKED ABOUT WHAT THE LEFT-HAND DOWNSIDE LOOKS LIKE FROM A FULLY INSURED PERSPECTIVE. SO WHAT DOES IT MEAN TO BE SELF-INSURED? WHAT IT MEANS TO BE SELF-INSURED IS THAT WHEN WE'RE TALKING ABOUT THE GUARANTEED SPEND BY THE COUNTY,

[01:35:01]

ADMINISTRATION FEES ABOUT THE SAME. STOP LOSS CHARGES, I DID GO OUT INTO THE OPEN MARKET AND DID A MARKETING ON THAT. CAME OUT A LITTLE BIT MORE EXPENSIVE, BUT THAT'S AGAIN IN, IN THE PRISM POOL, YOU'RE GETTING THE ADVANTAGE OF A MUCH BIGGER PURCHASING POOL ON THAT STOP LOSS. AND THEN WE ALSO HAVE DOWN AT THE BOTTOM WHERE WE'RE LOOKING AT THIS IS THAT ADDITIONAL LIABILITY. SO WE HAVE THE INDIVIDUAL STOP LOSS PROTECTION THAT SAYS IF MY CLAIMS ARE GREATER THAN, IN THIS INSTANCE, $400,000, YOU'RE NOT GOING TO COUNT THOSE AGAINST ME.

THAT'S GREAT. THEY JUST GO OFF AND THEY GET ABSORBED.

WHAT HAPPENS IF 50% OF THE PEOPLE WITHIN WITHIN THE COUNTY HAVE A $300,000 CLAIM. THAT INDIVIDUAL INSURANCE DOESN'T DO ME ANY GOOD. SO THERE'S THIS OTHER PROTECTION CALLED AGGREGATE PROTECTION, AND IT PROVIDES YOU USUALLY ANYWHERE FROM A 10 TO 20%, YOU CAN PURCHASE THIS INSURANCE THAT SAYS, WHAT ARE MY CLAIMS EXPECTED TO BE, AND THEN PROVIDE ME SOME ADDITIONAL OUTLYING PROTECTION SO THAT I DON'T SINK THE FUND.

SO THAT WOULD BE YOUR VARIABLE SPEND PART. SO IF THE COUNTY HAS A GREAT YEAR, THAT VARIABLE SPEND IS LOWER.

IF THE COUNTY HAS A BAD YEAR, YOU COULD BE UP TO, AGAIN, THAT 15 TO 20% HIGHER THAN WHAT YOU WERE ON A FULLY INSURED BASIS. SO THEN IF WE LOOK AT A SELF-FUNDED MARKING THAT WE DID, WE'RE LOOKING AT, SAY, THE CURRENT, YOU'RE AT ABOUT A $48 MILLION SPEND RENEWAL. THIS IS ASSUMING A 12%. AGAIN, I DON'T HAVE YOUR RENEWAL I'M GUESSTIMATING THAT WOULD PUT YOU AT ABOUT $54 MILLION. A STOP-LOSS CARRIER THAT WE WENT TO SAID THAT THEY EXPECTED YOUR CLAIMS AND ADMIN COSTS TO BE ABOUT THIS, YOU KNOW, JUST OVER $50 MILLION, BUT THAT LIABILITY CORRIDOR PUTS YOU UP AT ABOUT $61 MILLION. SO A LOT OF WHAT GOES INTO DO WE WANT TO BE SELF-FUNDED OR NOT SELF-FUNDED IS HOW MUCH FLEXIBILITY DO YOU WANT IN THE PROGRAM? CAN PRISM MEET SOME OF THE THINGS THAT WE'RE GOING TO RECOMMEND THAT YOU MAY MAKE SOME CHANGES WITHIN YOUR PLAN DESIGN TO HELP THE OVERALL TRAJECTORY OF YOUR PLAN, OR DO YOU NEED TO BE SELF-FUNDED TO DO THOSE? IF YOU'RE GOING TO BE SELF-FUNDED, ARE WE WILLING TO TAKE ON THAT ADDITIONAL RISK THAT'S INVOLVED WITH IT AND MAKING SURE THAT THAT'S VERY UNDERSTOOD BY ALL PARTIES. RETIREE SUBSIDY. WE WENT THROUGH A LOT WITH OUR 5-YEAR HISTORY. SO RETIREE SUBSIDY, ONE OF THE THINGS THAT WE WERE ASKED TO LOOK AT IS WHAT'S HAPPENING WITH THE ACTIVE POPULATION VERSUS THE RETIREE POPULATION, AND HOW MUCH ARE THE ACTIVE SUBSIDIZING THE RETIREES, AND WHAT'S HAPPENING WITH SOME MOVEMENT OF SOME MONEY BEHIND THE SCENES, THAT KIND OF STUFF. SO IS IT APPROPRIATE? IS IT RIGHT? EVERYTHING ELSE. I WILL SAY THAT WHEN IT COMES TO RETIREE SUBSIDIES, A LOT OF THAT JUST COMES DOWN TO YOUR, YOU KNOW, KIND OF LIKE PHILOSOPHY ON DO YOUR ACTIVE POPULATIONS WANT TO MAKE SURE THAT WHEN THEY RETIRE, THE COST OF IT IS LOW ENOUGH THAT THEY CAN AFFORD IT? OR DO THEY SAY, EH, DON'T CARE? YOU KNOW, IT'S KIND OF LIKE, YOU KNOW, YOUR FAMILY SUPPORTING YOUR INDIVIDUALS, OR I MEAN, YOUR INDIVIDUALS SUPPORTING YOUR FAMILIES. LIKE, KIND OF WHAT IS YOUR PHILOSOPHY AS A COUNTY AS FAR AS, AND FROM AN EMPLOYEE PERSPECTIVE, DO I WANT TO HELP FUND MY FUTURE RETIREMENT COST? SO IF WE'RE LOOKING AT THE ACTIVE VERSUS RETIREES, THIS IS JUST KIND OF A REITERATION OF WHAT WE TALKED ABOUT EARLIER, GIVEN THE FACT THAT THE LOSS RATIO FOR THE ACTIVES VERSUS THE LOSS RATIO ON THE RETIREES, OBVIOUSLY, WHETHER WE'RE TALKING ABOUT MERCED VERSUS PRISM, WE'LL TALK ABOUT THIS ON THE NEXT SLIDE, THERE'S A LITTLE BIT OF MOVEMENT OF MONEY BETWEEN THE ACTIVES AND THE RETIREES A COUPLE OF YEARS BACK, BUT BASICALLY, BOTTOM LINE, EVEN IF WE TAKE OUT ANY, LIKE, LITTLE BIT OF MOVEMENT THAT MERCED COUNTY DID BETWEEN THOSE TWO NUMBERS, YOUR RETIREES ARE STILL WELL AND ABOVE WHAT YOUR ACTIVES ARE.

AND WE'LL SEE THAT WHEN WE TALK ABOUT YOUR IMPLICIT SUBSIDIES THAT ARE HAPPENING WITHIN YOUR OPEB LIABILITIES.

SO IN 2025, WHAT HAPPENED WAS THESE RATES UP HERE ARE THE RATES THAT PRISM GAVE YOU. SO THESE ARE THE RATES THAT PRISM HEALTH CAME AND SAID, THESE ARE THE RATES THAT ARE APPROPRIATE FOR YOUR HEALTH PLANS. THEN THE COUNTY WENT AND MOVED A LITTLE BIT OF THAT FUNDING AROUND, WHICH I THINK HAS BEEN, HAD BEEN THE PRACTICE FOR MANY YEARS BEHIND THAT, BECAUSE WE WANTED TO MAKE SURE, THE COUNTY WANTED TO MAKE SURE THAT IT WAS SUSTAINABLE FOR THE RETIREES AND WANTED TO LOWER THE RETIREE BURDEN BY ABOUT 30% ADDITIONAL HERE.

WELL, IN ORDER TO MAKE UP THAT 30% LOWERING OF THE RETIREE BURDEN, ABOUT 6% WAS PUSHED INTO THIS ANTHEM LOW PLAN RIGHT HERE, OKAY? AGAIN, NOTHING WRONG WITH DOING THAT, IT'S JUST A PHILOSOPHICAL DIFFERENCE OF DO WE HAVE OUR ACTIVE POPULATIONS HELPING TO FUND OUR RETIREE POPULATIONS? THEN IF WE LOOK FORWARD TO 2026, INSTEAD OF FUNDING IT FROM THE RETIREES, I MEAN

[01:40:01]

OTHER COUNTIES, IF YOU LOOK AT LIKE EL DORADO COUNTY, THEY DO, SOME OF THE OTHER COUNTIES DO. THE ONES THAT I SAY NO ON, THAT DOESN'T MEAN THAT THERE'S NOT ANY, WE'RE GONNA TALK ABOUT IMPLICIT SUBSIDIES, BUT THERE'S NO JUST OUTLYING, LIKE WE'RE GONNA BLEND THE RATES TOGETHER AND WE'RE GONNA GIVE EVERYBODY THE SAME RATE REGARDLESS OF WHETHER YOU'RE AN ACTIVE OR RETIRED. RETIREE. SO CURRENTLY THE PRACTICE OF MERCED COUNTY IS, AND WE'RE TALKING ABOUT YOUR UNDER-65 POPULATION.

OBVIOUSLY YOU DO SOME STUFF FOR YOUR OVER-65S, BUT THAT'S A VERY SMALL PIECE OF THE, OF THE PUZZLE. SO WE'RE TALKING ABOUT YOUR UNDER-65S.

IT'S RANGING BETWEEN $300 AND $400 A MONTH. THAT'S THE EXPLICIT SUBSIDY THAT YOU GUYS ARE GIVING. YOU'RE FUNDING BASED ON YEARS OF SERVICE AND TIME OF WHEN THEY RETIRE, ALL THAT TYPE OF STUFF.

SOMEWHERE BETWEEN $300 AND $400 PER MONTH. WE DID TAKE A LOOK AT THE GASB REPORT THAT WAS DONE BY YOUR ACTUARY, AND ACCORDING TO THIS, YOUR OPEB LIABILITY, WHICH IS BOTH YOUR EXPLICIT AND YOUR IMPLICIT LIABILITIES, YOU GUYS WERE, AS OF THE REPORT ENDING HERE, YOU GUYS WERE 82.5% FUNDED ON YOUR OPEB LIABILITIES. WHAT DO OTHER COUNTIES DO? THERE IS NOT A REQUIREMENT, THERE'S A REQUIREMENT TO DO THE STUDY, BUT THERE'S NOT A REQUIREMENT TO FUND. SO A LOT OF COUNTIES DO THIS, WHAT YOU CALL, AND CITIES DO THIS PAY-AS-YOU-GO, MEANING THEY DON'T NECESSARILY HAVE A BUNCH OF MONEY SITTING IN THIS FUND. THEY'RE FUNDING IT AS THEY GO. THERE'S OTHER COUNTIES LIKE CITY AND COUNTY OF SAN FRANCISCO, THIS IS ALL PUBLICLY AVAILABLE, YOU CAN JUST GOOGLE IT, THAT SAYS THAT THEIR TARGET BY 2050 IS THAT THEY'RE GOING TO BE 100% FUNDED, BUT CURRENTLY THEY ARE 35% FUNDED.

OTHER EXAMPLES, FRESNO, 88% FUNDED, AND SO ON AND SO FORTH. SO ONE OF THE THINGS THAT THE BOARD NEEDS TO DETERMINE IS WHERE ARE YOU GUYS COMFORTABLE WITH THAT FUNDING AMOUNT. IF YOU FUNDED IT 100%, AND I THINK LATER ON MAYBE DAVID IS GOING TO ADDRESS KIND OF HOW THAT WORKS BEHIND THE SCENES AS FAR AS LIKE INVESTING THAT MONEY AND HOW THE INVESTMENT GROWS, WHICH CONTRIBUTES TO THE FUNDING OF IT AND EVERYTHING ELSE, YOUR GOAL IN PART OF THIS TAKEAWAY THAT WE HAVE IS WHAT IS YOUR GOAL FOR FUNDING THAT AMOUNT AND HOW DO YOU USE SOME OF THAT TO MAYBE HELP SOME OF THE, SOME OF THE POPULATION. SO WE TALKED ABOUT EXPLICIT VERSUS IMPLICIT SUBSIDIES. SO ONE OF THE THINGS THAT YOUR ACTUARIAL REPORT, AND THIS IS STRAIGHT OUT OF YOUR ACTUARIAL REPORT, IS THE IMPLICIT SUBSIDY. SO THIS IS REGARDLESS OF THAT 6% THAT THE COUNTY MOVED A COUPLE OF YEARS AGO. THIS IS JUST WHAT'S HAPPENING IN YOUR RATES THAT ARE PROVIDED BY PRISM HEALTH. AND THIS IS DIRECTLY REFLECTIVE AGAIN OF THAT LOSS RATIO THAT WE SAW, THAT YOUR RETIREES ARE HAVING A MUCH HIGHER OUTPUT THAN WHAT THEY'RE BRINGING IN FOR THE COST OF, OF THE PREMIUMS. SO IF YOU LOOK AT THE, I DID IT AGAIN, YOU WARNED ME, HIT THAT BUTTON. UM, SO IF YOU LOOK AT THE PER CAPITA COST, THIS IS WHAT YOUR ACTUARIAL STUDY SAID. THIS IS WHAT IT ACTUALLY COSTS FOR THOSE RETIREES WHEN YOU'RE LOOKING AT CLAIMS DATA. THE RATES ARE ONLY RIGHT HERE AT THIS $1,400 AND $1,500. OBVIOUSLY THERE'S A DIFFERENCE BETWEEN THOSE TWO NUMBERS.

THIS NUMBER IS YOUR IMPLICIT SUBSIDY. SO THIS NUMBER GETS ADDED TO THAT $300 OR $400 THAT WE TALKED ABOUT ON THE OTHER PAGE, MULTIPLIED BY THE NUMBER OF RETIREES AND SPOUSES, AND THAT'S HOW WE GET TO THESE REALLY, REALLY LARGE OPEB LIABILITY NUMBERS. ONE OF THE ALTERNATIVES THAT MY OFFICE IS SUGGESTING THAT YOU LOOK INTO IS AN HRA, WHICH IS A HEALTH REIMBURSEMENT ARRANGEMENT FOR RETIREES. WHAT THIS MIGHT BE IS THAT INSTEAD OF GIVING THEM THE $300 OR $400 TO OFFSET THE $1,500 PREMIUM THAT'S CHARGED BY THE PRISM HEALTH PLAN, IS GIVE THEM THE $300 OR $400 AND IN A HEALTH REIMBURSEMENT ARRANGEMENT AND LET THEM GO PURCHASE THEIR OWN INSURANCE.

LET THEM DECIDE WHAT PLAN THEY WANT. LET THEM DECIDE WHAT DEDUCTIBLE THEY WANT. LET THEM DECIDE WHETHER THEY WANT TO WORK WITH BLUE SHIELD OR AETNA OR CIGNA OR WHOMEVER THEY WANT TO WORK WITH. SO IT'S

[01:45:02]

BASICALLY, THOUGH, YOU COULD GO INTO THIS WITH A MULTI-TIERED APPROACH.

YOU COULD SAY THAT AS OF A CERTAIN DATE, THIS IS THE PROGRAM WE'RE MOVING FORWARD WITH. YOU COULD GIVE YOUR CURRENT RETIREES THE ABILITY TO SAY, I WANT TO OPT INTO THIS OR NOT. SO THAT'S A WHOLE ADDITIONAL, YOU KNOW, EXPLORATION YOU GUYS NEED TO DO, BUT OUR RECOMMENDATION IS THAT YOU AT LEAST EXPLORE IT, BECAUSE IF YOU EXPLORED THAT, YOU WOULD WOULD REMOVE ALL OF THAT IMPLICIT LIABILITY THAT IS SITTING IN YOUR OPEB LIABILITY. THAT IS A VERY, VERY LARGE NUMBER.

WHAT ONE THING THAT WE DID DO IS WE SAID, OKAY, IF WE TURN THIS OVER TO THE RETIREES AND SAID YOU CAN GO PURCHASE YOUR OWN INSURANCE, WE'RE GOING TO GIVE YOU THIS $300 OR $400, COULD THEY PURCHASE INSURANCE? SOME OF THAT DEPENDS ON THE AGE THAT THEY'RE AT AND WHERE THEY WANT TO PURCHASE THEIR INSURANCE.

THIS IS STRAIGHT OUT OF COVERED CALIFORNIA, WENT ONTO THE WEBSITE COVERED CALIFORNIA, PUT IN A 62-YEAR-OLD WITH A MERCED COUNTY ZIP CODE. IF I LOOKED AT THAT AND I SAID, WHAT IF I MADE $50,000 A YEAR, THAT'S HOW MUCH I'M DOING FOR MY TAXES, I WOULD GET SOME TYPE OF AN ACA SUBSIDY. AND THEN WHAT IF I DIDN'T GET AN ACA SUBSIDY? SO AGAIN, THIS GOES IN AND JUST ALLOWS PEOPLE TO CHOOSE WHAT THEY WANT., AND THEY MIGHT END UP A LOT BETTER OFF THAN WHERE THEY WERE. SO JUST A RECOMMENDATION TO EXPLORE THAT FURTHER. SO WITH THAT, I'M GOING TO GO INTO THE MEDICAL PERFORMANCE AND THE PROGRAM LANDSCAPE OF WHAT'S HAPPENING. SO IF WE LOOK AT THE ENROLLMENT BY PLAN TYPE, I THINK THE MOST INTERESTING ON THIS PAGE IS WE'RE LOOKING AT THE FACT THAT IN 2024 WE HAD THIS EPO BUY-UP PLAN, THAT PLAN WAS REMOVED. SO JUST LOOKING AT WHERE DID THE PEOPLE MOVE TO, IF WE'RE LOOKING AT WHERE THE PEOPLE MOVED TO, THEY DID NOT MOVE INTO THE HIGH DEDUCTIBLE HEALTH PLAN. THEY REALLY JUST STAYED IN BETWEEN THESE TWO, PPO 15 AND PPO CORE. THE REASON I SAY THAT IS THAT HIGH DEDUCTIBLE HEALTH PLAN YOU'RE GOING TO SEE IN LATER SLIDES IS AN EXTREMELY GENEROUS PROGRAM BY THE COUNTY, AND IT'S, TO ME, IT'S A SHAME THAT NOT MORE PEOPLE UNDERSTAND THE BENEFITS AND THE VALUES OF THAT PROGRAM. SO ONE OF THE THINGS WE'RE ALSO MAKING STRONG RECOMMENDATIONS ON IS A LOT OF EDUCATION REGARDING THE PROGRAMS AND HOW EMPLOYEES CAN REALLY MAKE THESE PROGRAMS WORK BETTER FOR THEM IN THEIR SITUATION. LOOKING AT THIS, AGAIN, NOT GOING TO SPEND A LOT OF TIME ON THIS. WE CAN EVALUATE IT LATER. THIS IS JUST LOOKING AT LIKE YOUR AVERAGE AGE AND THE DEMOGRAPHIC DIFFERENCES BETWEEN THEM. ONE OF THE THINGS THAT I THINK IS INTERESTING IS THAT THE AFFORDABLE CARE ACT SAYS THAT YOU AS AN EMPLOYER HAVE TO PROVIDE A CERTAIN MINIMUM VALUE BENEFITS TO YOUR EMPLOYEES. THE AFFORDABLE CARE ACT ONLY SAYS YOU NEED TO DO A 0.6, YOU GUYS ARE AT A 0.9, AS ARE A LOT OF OTHER CITIES AND COUNTIES.

SO A LOT OF EMPLOYERS ARE WELL AND ABOVE WHERE THE ACA REQUIREMENTS ARE.

IF WE LOOK AT A 4-YEAR FINANCIAL REVIEW, A COUPLE OF THINGS THAT ARE OF INTEREST OR OF CONCERN.

CONCERN ON THIS IS THAT WHILE YOU GUYS HAVE HAD A SLIGHT INCREASE IN SUBSCRIBERS, THAT REFERENCES THE EMPLOYEE LEVEL, YOU'VE HAD A DECREASE IN THE NUMBER OF MEMBERS COVERED. THAT MEANS THAT YOU GUYS HAVE DEPENDENTS WHO ARE DROPPING OFF OF THESE PLANS. IN ADDITION TO THAT, YOU HAVE THE PRESCRIPTION DRUG CLAIMS HAVE INCREASED BY 89%. WE'LL TALK ABOUT WHAT SOME OF THE DRIVERS BEHIND THOSE INCREASES ARE, BUT THAT'S A REALLY LARGE CONCERN THAT WE HAVE THERE.

IN ADDITION TO THAT, IF YOU'RE LOOKING AT THE YEAR-OVER-YEAR COMPARISON OF JUST WHERE YOUR EMPLOYEES ARE GETTING THEIR SERVICES, WE LOOK AT THIS AS A BENCHMARK. YOU GUYS ARE 89% OR 39% HIGHER IN INCIDENTS AND 89% MORE EXPENSIVE. SO YOUR EMPLOYEES ARE GOING TO THE EMERGENCY ROOM AND USING THE EMERGENCY ROOM KIND OF ALMOST AS PRIMARY CARE, AND A LOT OF THE VISITS ARE VERY EXPENSIVE. NOW WE UNDERSTAND COMPLETELY THAT ACCESS TO CARE WITHIN MERCED COUNTY IS NOT EASY. SO WE'RE NOT SAYING THAT THIS IS, YOU KNOW, AN EASY TO SOLVE ISSUE, BUT IT IS HAPPENING AND IT IS WHAT IS HIGHLY IMPACTING THE COST OF YOUR PROGRAMS. IN ADDITION TO THAT, YOU GUYS, OUR PREVENTIVE CARE HAS HAD A 14% DECREASE IN THE AMOUNT OF PREVENTIVE CARE YOUR EMPLOYEES AND MEMBERS ARE GETTING. SO THAT MEANS THAT THEY'RE NOT GOING IN AND GETTING THE CANCER SCREENINGS. THEY'RE NOT GOING IN AND HAVING THEIR WELLNESS CHECKUPS THE WAY THAT THEY SHOULD, POTENTIALLY PREVENTING SOME OF THESE LARGER, MORE EXPENSIVE THINGS DOWN THE ROAD. ANOTHER ASK THAT WE WERE LOOKED AT IS WHAT IS YOUR CLINIC UTILIZATION AND WHETHER THAT PROGRAM IS SOMETHING THAT YOU SHOULD CONTINUE AND SUSTAIN. OUR VIEW ON IT IS YES, YOU SHOULD, WITH THE CAVEAT THAT IT NEEDS TO BE BETTER PROMOTED AND IT NEEDS TO BE BETTER UTILIZED.

THAT PROGRAM COSTS THE COUNTY ABOUT $400,000 PER YEAR. WE

[01:50:01]

GRANTED, ONE OF THEM WAS A SUPER, SUPER LARGE CLAIM, BUT IT HAS BEEN THE SECOND MOST UTILIZED PROVIDER FOR 4 YEARS IN A ROW. IF WE'RE ALSO LOOKING AT CHRONIC CONDITIONS, THIS GOES BACK TO THE FACT THAT WE HAVE THE ABILITY TO CONTROL A GOOD PERCENTAGE OF WHAT HAPPENS TO OUR HEALTHCARE COSTS. SOME OF IT IS OUT OF OUR CONTROL, LIKE WE TALKED ABOUT IN THE VERY BEGINNING. SOME OF THIS IS ABSOLUTELY WITHIN THE CONTROL. SOME OF THESE PROGRAMS, PRISM HEALTH HAS PROGRAMS OUT THERE TO HELP WITH THESE CHRONIC CONDITIONS.

EMPLOYEES ARE NOT ENGAGING IN THOSE PROGRAMS THOUGH. AND SO WE NEED TO FIGURE OUT A WAY TO GET THE ENGAGEMENT IN THOSE PROGRAMS UP, THE COMMUNICATION, THE INCENTIVES OR DISINCENTIVES, HOWEVER WE WANT TO LOOK AT IT. WE NEED TO BUILD UP THAT, THAT PARTICIPATION IN THAT.

THESE CHRONIC CONDITIONS ARE WAY OUT OF THE NORM. SO THE OTHER CONCERNING THING IS WHEN WE'RE LOOKING AT GAPS IN CARE. SO WE TALKED ABOUT ON THE THE OTHER SLIDE, THE PREVENTIVE MEASURES, EVERYBODY, WHEN YOU LOOK AT BENCHMARK, EVERYBODY IS BELOW REALLY WHERE THEY SHOULD BE ON PREVENTIVE MEASURES. BUT WE KNOW AGAIN YOU GUYS HAVE HAD A DECREASE IN THE NUMBER THAT YOU'VE HAD.

BUT IF YOU'RE LOOKING AT MEDICATION ADHERENCE, THAT'S REALLY CONCERNING. SO MEDICATION ADHERENCE MEANS I WRITE YOU A PRESCRIPTION FOR 30 DAYS, DO YOU COME BACK BEFORE THE END OF THE 30 DAYS TO GET IT REFILLED BECAUSE ON DAY 31 YOU'RE GOING TO BE OUT OF MEDICATION AND YOU NEED TO TAKE THE NEXT BATCH. IF YOU'RE NOT GETTING IT FILLED FOR, TILL DAY 60, THERE'S NO WAY YOU WERE COMPLIANT BY TAKING 30 DAYS OF MEDICATION IN A 60-DAY PERIOD OF TIME.

SO, THAT'S WHERE WE'RE TALKING ABOUT MEDICATION ADHERENCE.

SOME OF THIS NOT SHOWN ON HERE IS THINGS LIKE YOU GO IN AND YOU HAVE AN INFECTION AND YOU GET SOME TYPE OF AN ANTIBIOTIC AND IT SAYS TAKE IT FOR 10 DAYS YOU TAKE IT FOR 6 BECAUSE ON DAY 7 YOU FEEL GOOD SO YOU STOP TAKING IT BUT ON DAY 14 YOU'RE BACK IN THE EMERGENCY ROOM OR THE ER OR THE URGENT CARE BECAUSE YOU RELAPSED. WELL, YOU RELAPSED BECAUSE YOU DIDN'T FINISH TAKING YOUR MEDICATION. SO THERE'S ALL KINDS OF THINGS LIKE THAT THAT WE HAVE THE POWER TO BE ABLE TO CONTROL OUR HEALTHCARE COSTS. WHEN WE'RE LOOKING AT THE TOP PRESCRIPTIONS SPENT BY DOLLARS, SOME OF THESE ARE UNAVOIDABLE. AS I SAID IN THE BEGINNING, THERE'S A LOT OF SPECIALTY MEDICATIONS. WE HAVE, YOU KNOW, MS CONDITIONS THAT CAN RUN $150,000, $200,000 A YEAR.

THOSE ARE ABSOLUTELY NECESSARY.

THEY'RE EXPENSIVE, BUT THEY'RE ABSOLUTELY NECESSARY. WE ALSO HAVE A PROBLEM WITH OUR GLP-1S. SO CARRIERS ARE DOING THINGS DIFFERENT IN THE NEXT YEAR REGARDING GLP-1S.

I'M SURE PRISM HEALTH PROBABLY HAS AN APPROACH THAT THEY'RE GOING TO BE TAKING REGARDING THEIR GLP-1S. I KNOW THAT CVS, WHICH ALSO OWNS AETNA, JUST ANNOUNCED THE OTHER DAY THEY ARE MAKING SOME FORMULARY CHANGES TO THEIR GLP-1S. IT'S AN AREA THAT IS OF MAJOR CONCERN OUT THERE.

YOU GUYS HAVE YOUR TOP 5 DRUGS ARE UTILIZED FOR GLP-1S. THESE ARE THE WEIGHT LOSS DRUGS.

THESE ARE THE ZETBONDS, THE WEGOVIES, ALL OF THOSE. NOW, USING THEM IN CONJUNCTION WITH A DIABETIC PROGRAM, THINGS OF THAT NATURE, THEY'RE ABSOLUTELY IMPORTANT DRUGS. I THINK THAT WE HAVE NOT YET SEEN, WE'RE SEEING THE COST OF THE DRUGS, BUT WE HAVEN'T YET SEEN THE DOWNFLOW OF WHAT IT MAY DO FROM DECREASING HEALTHCARE COSTS.

BUT AN IMPORTANT PART TO THIS IS IF SOMEBODY'S TAKING ONE OF THESE DRUGS AND THEY DON'T ALSO TAKE SOME TYPE OF LIKE A BEHAVIORAL HEALTH, WHERE THEY'RE CHANGING THEIR BEHAVIOR, THEY GO OFF THE DRUGS AND THEY'RE GOING TO GAIN THE WEIGHT RIGHT BACK.

SO IT'S IMPORTANT, AGAIN, THAT WE DO THE EDUCATION, WE GET PEOPLE PARTICIPATING IN THESE PROGRAMS, OTHERWISE IT'S ALL FOR NOTHING. BENCHMARKING. WE DID GO TO THE FOLLOWING CITIES AND COUNTIES. THIS IS ALL INFORMATION THAT WAS AVAILABLE PUBLICLY. YOU GUYS CAN GO GRAB THE SAME INFORMATION. ANYBODY

[01:55:01]

BUT WHEN WE LOOK AT THIS, ONE OF THE COUPLE THINGS THAT POINT, THAT STAND OUT, YOU GUYS ON YOUR HEALTH SAVINGS SAVINGS ACCOUNT FUNDING INTO THAT HIGH DEDUCTIBLE HEALTH PLAN, YOU'RE FUNDING ABOUT $1,700 FOR INDIVIDUALS.

ON AVERAGE, OTHER COUNTIES ARE FUNDING ABOUT $390. SO YOU GUYS ARE EXTREMELY GENEROUS IN THAT.

THE OTHER THING YOU'RE EXTREMELY GENEROUS ON IS THE DEDUCTIBLE IS $1,700 AND YOU GUYS ARE FUNDING BASICALLY THE FULL DEDUCTIBLE.

SO SOMEBODY'S REALLY NOT TAKING THAT MUCH OF A RISK FROM A DEDUCTIBLE PERSPECTIVE INTO THAT PLAN. OUT-OF-POCKET MAXIMUM, WE CAN GET INTO, TO THAT CONVERSATION.

BUT OTHER COUNTIES, AGAIN, THEY'RE $392 AND THEIR DEDUCTIBLES ARE $2,300. SO THAT PROGRAM IS REALLY FAR SUPERIOR, AND IT IS SOMETHING THAT REALLY NEEDS EDUCATION ABOUT IT. THE OTHER THING THAT'S REALLY IMPORTANT ON THIS SLIDE IS WHEN WE'RE LOOKING AT HOW MUCH SINGLE EMPLOYEES ARE PAYING IN, IN MERCED COUNTY IN COMPARISON. THEY'RE OBVIOUSLY, FOR THE MOST PART, THEY'RE LOWER. BUT THEN YOU GO DOWN HERE TO FAMILIES AND THAT STORY FLIPS. SO ONE OF THE RECOMMENDATIONS THAT WE HAVE IS THAT YOU GUYS TAKE A REALLY SERIOUS LOOK AT SHIFTING SOME OF THOSE DOLLARS FROM THE EMPLOYEE ONLY OVER TO THOSE FAMILIES TO HELP THE FAMILIES. THIS WAS SHOWN IN THE OTHER EXHIBIT WE TALKED ABOUT. YOU GUYS ARE DROPPING FAMILIES OFF OF THAT. SO PHILOSOPHICAL, AGAIN, RETIREE VERSUS ACTIVE, IT'S THE SAME THING, SINGLE VERSUS FAMILIES. WHERE DO YOU GUYS FALL PHILOSOPHICALLY IN THAT DISCUSSION?. AND THAT'S SOMETHING YOU NEED TO DETERMINE.

YES, SIR.

CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR.

I'M SORRY, I DIDN'T CATCH THIS.

DEDUCTIBLE PLUS COIN. WHAT IS COIN? COINSURANCE.

COINSURANCE.

THANK YOU. THANK YOU.

AND I APOLOGIZE, WE USE A LOT OF ACRONYMS IN THE INSURANCE INDUSTRY, SO I TRY MY BEST TO REMEMBER.

TO SAY THEM OUT, BUT YEAH, THERE'S A LOT OF ACRONYMS THAT WE UTILIZE.

SO WHEN WE LOOK AT THE BENCHMARKING OF CITIES, IT'S KIND OF SIMILAR STORIES, LITTLE BIT DIFFERENT SHIFT.

IT'S 192. SO YOU CAN LOOK AT THIS, YOU KNOW, IN MORE DETAIL. WE CAN PROVIDE THE DETAILS REGARDING THE INDIVIDUAL COUNTIES AND CITIES IF YOU GET INTO THE BENCHMARKING ANALYSIS A LITTLE BIT MORE. WE WERE ALSO ASKED JUST, YOU KNOW, ON THE SAFETY PERSONNEL, WE DID GO IN AND LOOK FOR ANYTHING WE COULD FIND DIFFERENT ON SAFETY PERSONNEL. SO WE OUTLINED HERE THINGS THAT WE FOUND THAT WERE DIFFERENT. ALL IN ALL, WITH THE EXCEPTION OF THE ONES THAT OFFER CALPERS BECAUSE THEY ALSO HAVE THE ABILITY TO OFFER PORAC, MOST OF THE PLAN OFFERINGS ARE THE SAME. CONTRIBUTIONS ARE FAIRLY SIMILAR. SOME OF THEM ARE A LITTLE BIT DIFFERENT.

IRONICALLY, SOME OF THEM ARE ACTUALLY LESS FUNDING FOR THEM, BUT THAT MIGHT BE BECAUSE THEY BARGAINED SOMETHING YEARS AGO THAT IMPACTED THAT. SO, WITHOUT KNOWING THE BARGAINING HISTORY, IT'S KIND OF HARD TO SAY WHETHER THAT'S A PLUS OR A MINUS BECAUSE IT MIGHT HAVE BEEN SHIFTED, YOU KNOW, SOMEWHERE ELSE. EMERGING TRENDS THAT WE'RE STARTING TO SEE, SO VIRTUAL PRIMARY CARE AND TYING SOME FINANCIAL INCENTIVES TO SOME OF THESE THINGS. SO, IF I'M SICK, THERE IS NO WAY I'M GOING TO TAKE THE TIME TO DOWNLOAD AN APP ONTO MY PHONE PHONE, AND THEN MY PASSWORD DOESN'T WORK, AND I GOT TO LOAD MY CREDIT CARD, AND I HAVE TO DO ALL THIS KIND OF STUFF, I'M GOING TO SAY, FORGET IT, AND I'M GOING TO GO DOWN TO THE URGENT CARE.

WELL, IF I'VE ENROLLED IN THAT AHEAD OF TIME, THAT VIRTUAL PRIMARY CARE CAN SAVE ME MONEY, IT CAN SAVE ME TIME, ALL OF THOSE THINGS. SO, THESE ARE WAYS THAT WE NEED TO LOOK AT PROMOTING, PUTTING INCENTIVES BEHIND, ESPECIALLY REGARDING YOUR CLINIC, PUTTING SOME INCENTIVES OR DISINCENTIVES BEHIND USING OR NOT UTILIZING THE CLINIC, I'M GETTING FAMILIAR WITH IT. I WOULD GUESS THAT A LOT OF PEOPLE DON'T EVEN KNOW WHERE THE CLINIC IS. SO MAKING SURE THAT PEOPLE ARE FAMILIAR WITH THE SERVICES THAT CAN BE PROVIDED THERE. IN ADDITION, AN HRA INTEGRATION, SO THIS IS A HEALTH REIMBURSEMENT ARRANGEMENT. SO STRUCTURING YOUR PLAN TO WHERE YOU'RE LOOKING AT, WELL, WE HAVE ALL THESE PROVIDERS, BUT JUST BECAUSE THEY'RE ALL ANTHEM PROVIDERS, DO THEY HAVE THE BEST OUTCOMES? LIKE, ARE THEY THE BEST PROVIDERS THAT WHEN THEY'RE DOING THEY ARE DOING PHYSICAL THERAPY BEFORE THE, BEFORE THEY JUMP TO SURGERY.

AFTER THE SURGERY, ARE THEY HAVING TO REPEAT THE SURGERY WITHIN THE PROPER PERIOD OF TIME OR EVER? SO A LOT OF THINGS THAT GO INTO WHETHER THE PROVIDER IS PROVIDING SERVICES APPROPRIATELY.

LOOKING AT PHARMACY BENEFITS, YES, SIR.

CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

WHOSE RESPONSIBILITY DOES THAT LAST PIECE YOU JUST MENTIONED, WHERE YOU'RE TALKING ABOUT, YOU KNOW, A PROVIDER AND ARE THEY DOING PHYSICAL THERAPY

[02:00:01]

SO IT'S ALIGNING THE BEST FACILITIES WITH THE BEST PROVIDERS TO DETERMINE THE BEST OUTCOME.

AND AGAIN, THERE ARE COMPANIES THAT YOU HIRE THAT YOU LAYER ON TO YOUR PROGRAM TO CREATE THOSE OPPORTUNITIES.

AND THEN WHAT WOULD BE THE INCENTIVE? WOULD YOU INCENTIVIZE THAT FOR THE, FOR OUR EMPLOYEES TO SAY, HEY, NOW IF YOU USE THIS, YOU GET SOME KIND OF INCENTIVE FOR THAT? CORRECT. AND THAT'S GENERALLY HOW THEY'RE ARRANGED. USUALLY IT IS A LOWER COPAYMENT, A LOWER DEDUCTIBLE, LOWER OUT-OF-POCKET, AND THAT'S REIMBURSED THROUGH THIS HEALTH REIMBURSEMENT ARRANGEMENT THAT YOU GUYS HAVE SET MONEY ASIDE. SO THERE'S A WHOLE, YOU KNOW, ANALYSIS THAT GOES INTO THAT ABOUT, YOU KNOW, PREMIUM SAVINGS VERSUS HOW MUCH YOU'RE FUNDING, ALL OF THOSE TYPES OF THINGS.

ALL RIGHT, THANK YOU.

SO MARKETING RESULTS, ANOTHER THING THAT WE WERE ASKED TO DO WAS GO OUT AND DO A MARKETING. COULD WE HAVE DONE BETTER IF WE HAD GONE OUT ON OUR OWN TO DO AND EXITED THE PRISM HEALTH? SO LOOKING AT THIS, CALPERS, IF WE LOOKED AT THAT, WOULD NOT HAVE SAVED YOU GUYS MONEY. IT ACTUALLY WOULD HAVE BEEN ABOUT 7% HIGHER IF YOU HAD BEEN IN THE EQUIVALENT PLANS. I'M GONNA SKIP OVER KAISER 'CAUSE WE'RE GONNA DISCUSS THAT ONE ON THE NEXT PAGE. AETNA WOULD NOT HAVE SAVED YOU GUYS ANY MONEY. VIBA IS ANOTHER TRUST THAT'S OUT THERE. THESE ARE THE 2027 PRICING, SO THAT'S ABOUT 10.2%, PROBABLY SIMILAR TO WHAT YOU'RE GONNA BE AT IN YOUR PRISM. SO NO SILVER BULLETS. HEALTH THERE BASICALLY IS, IS THE, THE ANSWER TO THAT. YOU DO HAVE THIS KAISER THOUGH, SO WE DID GO OUT ON A DIRECT MARKET BASIS TO KAISER, AND ON AN INDIVIDUAL RATE-TO-RATE BASIS, IT WOULD HAVE SAVED ABOUT 17% ON THAT RATE TO MOVE OVER TO KAISER. SO THAT IS ONE STRONG RECOMMENDATION THAT WE ARE MAKING, IS THAT YOU GUYS EXPLORE THAT.

NOW, ONE OF THE HARD PARTS IS THAT IT'S ONLY AVAILABLE TO ABOUT 230 EMPLOYEES, WHICH IS ONLY ABOUT 10% OF YOUR POPULATION.

BUT WHY WOULD YOU SAY, WELL, IT'S ONLY 10% OF OUR POPULATION? WELL, IF I'M ONE OF THOSE 230 EMPLOYEES, I WANT ACCESS TO KAISER.

MAYBE KAISER'S WHERE I WAS BORN BECAUSE I LIVE IN MODESTO, OR, YOU KNOW, WHATEVER IT MAY BE.

SO HAVING THAT ABILITY FOR THEM TO DO THAT, NOW THERE'S DIFFERENT WAYS YOU CAN APPROACH KAISER. YOU CAN STAY IN YOUR PRISM HEALTH ARRANGEMENT. PRISM HEALTH DOES HAVE KAISER THROUGH THAT, AND I THINK THAT THROUGH YOUR CONSULTANT ALLIANCE AND PRISM HEALTH, THEY ARE EXPLORING THAT. WILL THE RATES BE THE SAME AS ON A DIRECT MARKET? I CANNOT ANSWER THAT QUESTION BECAUSE PART OF THAT DEPENDS ON HOW THE POOL HAS BEEN OPERATING. SO THAT'S A COMPLETELY DIFFERENT DISCUSSION YOU GUYS WILL HAVE WITH THEM.

WE DID TAKE A LOOK AT THE DENTAL AND THE VISION.

THIS IS A REALLY SMALL PART OF THE ANALYSIS AND SO I DON'T WANT TO SPEND ANY REAL TIME ON IT. JUST KNOW THAT WITH PRISM PRISM, YOU GUYS ARE PAYING A LOWER ADMIN FEE THAN YOU WOULD GET ON A DIRECT BASIS. THERE'S A COUPLE OF ADDITIONAL FEES THAT YOU'RE GETTING, BUT ALL IN ALL, THE COST DIFFERENTIAL IS NOT THAT BIG. SO AS LONG AS YOU WANT TO STAY WITH DELTA DENTAL, PRISM IS A GOOD OPERATING, IT'S A GOOD PLACE TO BE. NOW, IF YOU WANTED TO LOOK AT LEAVING DELTA DENTAL, WHICH I WOULD SAY IS A WHOLE NOTHER ANALYSIS, YOU WANT TO LOOK AT DENTAL PROVIDERS AND WINS AND LOSSES AND ALL OF THAT KIND OF STUFF, YOU COULD SAVE ADMINISTRATIVELY WITH SOME OF THE OTHER PROGRAMS THAT ARE OUT THERE, BUT THEN YOU HAVE TO LOOK AT THE CLAIMS AND WHAT THE NETWORK DISCOUNTS ARE AND WHATNOT. BASICALLY, BOTTOM LINE, YOU'RE IN A GOOD SPOT. I WOULDN'T MAKE ANY CHANGES UNLESS YOU HAVE ISSUE WITH DELTA DENTAL. SAME THING WITH VSP, ACCESSING IT THROUGH THE PRISM HEALTH ARRANGEMENT IS ALSO, YOU KNOW, IT'S A, YOU GUYS ARE NOT SPENDING A WHOLE LOT MORE TO BE IN THAT PRISM HEALTH ARRANGEMENT, AND AS LONG AS YOUR EMPLOYEES WEREN'T SAYING WE DON'T WANT VSP, WE WANT IMEDD, STICK RIGHT WITH WHERE YOU ARE. SO SUMMARY AND RECOMMENDATIONS, I'M CERTAINLY NOT GOING TO READ THIS LINE BY LINE, BUT WE'LL HIT THESE POINTS THAT WE'VE TALKED ABOUT. KAISER, I WOULD STRONGLY LOOK AT ADDING THAT. I WOULD MAKE SURE THAT YOU'RE TAKING INTO CONSIDERATION THAT IF KAISER EVER EXPANDS FURTHER INTO THE COUNTY, YOU GUYS ARE BEING REALLY CAREFUL AT HOW YOU'RE SETTING THE CONTRIBUTIONS. ANYTIME YOU GET TOO MUCH ENROLLMENT INTO THE KAISER PLAN, IT STARTS TO DEGRADE YOUR OTHER PLANS AND IT CAN CAUSE YOU PROBLEMS OVER TIME. SO THAT'S SOMETHING THAT YOU REALLY WANT TO BE CAREFUL AND CONSIDERATE ABOUT HOW YOU SET THOSE PROGRAMS UP. PLAN DESIGN CHANGES, WE TALKED ABOUT SOME COST CONTROLS ON THE GLP-1S, LOOKING AT MAYBE INCREASED ER VISIT COPAYMENTS.

WE NEED TO MAKE IT SO THAT PEOPLE ARE LOOKING

[02:05:01]

WAIVER, EVALUATE THAT NO OPT-OUT THAT YOU HAVE, KNOWING THAT IT CAN HAVE SOME IMPACT ON YOUR OTHER PLANS, SO IT CAN'T BE MADE IN A SILO. RETIREE PROGRAM, LOOKING AT THE FUTURE SUBSIDY OF THAT OPEB LIABILITY AND HOW YOU KIND OF, WHAT YOU WANT TO BE AS FAR AS PERCENTAGE FUNDED, MAYBE LOOKING AT THE HRA RETIREE ONLY TO REDUCE THAT IMPLICIT LIABILITY.

AND THEN FROM A SAFETY PERSPECTIVE, I THINK JUST CONTINUE DOING WHAT YOU'RE DOING. THERE'S NO REAL EVIDENCE TO SAY YOU NEED TO CHANGE THAT DRAMATICALLY ONE WAY OR ANOTHER. SO THAT IS THE SUMMARY OF OUR RECOMMENDATIONS.

I KNOW THAT WAS A TON OF INFORMATION. I KNOW I TOOK QUITE A WHILE, BUT HOPEFULLY I DIDN'T TALK TOO FAST.

NO, THANK YOU VERY MUCH. ARE THERE FURTHER QUESTIONS? WHAT ARE WE SUPPOSED TO TALK ABOUT? IS DAVE GOING TO TALK? YEAH.

OKAY.

DAVID, DID YOU WANT TO TALK ABOUT THE, JUST REAL QUICK, MR. CHAIR, MEMBERS OF THE BOARD, I THINK REALLY TODAY OBVIOUSLY WAS TO KIND OF RETURN TO YOU BASED UPON THE DIRECTION GIVEN BACK TO US FROM THE BOARD IN AUGUST. AND REALLY THE INTENTION TODAY IS TO START TO GAUGE YOUR INPUT WITH REGARD TO THE SLIDE. IF WE CAN GO BACK A COUPLE SLIDES, IF WE CAN, MAYBE TO SLIDE 51.

THERE'S A WHOLE, YEAH, THERE'S THE BULK OF THE RECOMMENDATIONS THERE.

AND REALLY, I THINK THAT THE HOPE, SUPERVISOR SILVEIRA, THROUGH THE CHAIR, IS TO GIVE STAFF SOME GUIDANCE TODAY, YOU KNOW, OBVIOUSLY WITH THE INTENTION OF RETURNING TO YOU WITH SOME ACTIONABLE STEPS HERE IN THE MONTHS AHEAD, ALL OF WHICH IS REALLY INTENTION TO FIGURE OUT THE BEST WAY TO GET THE BIGGEST BANG FOR THE BUCK FOR NOT ONLY THE COUNTY, BUT CERTAINLY TO PROTECT THE INTERESTS OF OUR EMPLOYEES. AND SO WITH THAT, MR. CHAIRMAN, MEMBERS OF THE BOARD, I WANT TO GIVE DAVID JUST A QUICK OPPORTUNITY TO KIND OF PUT A BOW ON THIS.

BUT AGAIN, REALLY OUR INTENTION TODAY IS TO GET SOME GUIDANCE. IS THERE ANYTHING ON THAT LIST OF RECOMMENDATIONS THAT YOU REALLY WANT US TO FOCUS ON OR NOT FOCUS ON? OUR INTENTION AT THIS POINT, IF I COULD BE SO BOLD, WOULD BE TO FURTHER EXPLORE EVERY ONE OF THOSE OPTIONS, TRY TO IDENTIFY AGAIN POTENTIAL SAVINGS, RETURN TO TO YOU WITH SOME ACTIONABLE STEPS, ALL OF WHICH IS AGAIN DESIGNED TO PROTECT THE FINANCIAL STABILITY OF THE COUNTY WHILE LOOKING OUT FOR OUR EMPLOYEES AND RETIREES AS WELL.

GREAT, THANK YOU. JUST WANT TO AGAIN THANK TINA AND HER TEAM AND OUR TEAM. THERE'S A TREMENDOUS AMOUNT OF DATA DIVING INTO THIS TO BRING YOU THIS PRESENTATION TODAY. WE ARE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. REGARDING ANY OF THE TOPICS AND AS ANY OF THE RECOMMENDATIONS. WE DO SEE THAT, YOU KNOW, MANY OF THESE RECOMMENDATIONS WE ARE HAPPY TO EXPLORE AND GO DOWN THE ROAD AND IN THE OVERALL GOAL TO PROVIDE BETTER HEALTHCARE OPTIONS FOR OUR EMPLOYEES AND BE MINDFUL OF THOSE COSTS AND HOW TO GET AHEAD OF THE RISING COSTS.

WITH THAT, HAPPY TO ANSWER ANY QUESTIONS.

NO, THANK YOU, DAVID. THANK YOU FOR THE PRESENTATION. IT IS A LOT, EVEN SECOND TIME TIME SEEING IT, IT'S A LOT TO DIGEST.

BUT A LOT OF IT IS SOME OF THE STUFF WE'RE TRYING TO UTILIZE, AND ESPECIALLY THE TELEHEALTH.

WE HAD THAT DISCUSSION. THAT'S AN OPTION THAT'S VERY CONVENIENT THAT'S OUT THERE, AS WELL AS OUR PLAN THAT WE HAVE THERE VISITING THE CLINIC AS WELL. SO CHAIR RECOGNIZES SUPERVISOR PAREIRA.

THANK YOU, CHAIR. DAVID, YOU KNOW, COULD YOU KIND OF SHARE, I MEAN, IF I'M A RETIREE RIGHT NOW, I'M KIND OF WONDERING, AND SO COULD YOU KIND OF GO THROUGH WHAT THAT MIGHT LOOK LIKE, YOU KNOW, SO THAT MAYBE PUT SOMEBODY AT EASE IF THEY'RE WATCHING RIGHT NOW? ABSOLUTELY. AND EXCUSE ME, I'M GOING TO GO BACK A HANDFUL OF SLIDES JUST ON THAT.

GIVE ME A MOMENT HERE.

I DON'T KNOW HOW MANY FINGERS YOU HAVE, BUT THAT'S MORE THAN A HANDFUL.

YEAH. SO ONE OF THE THINGS TO TALK ABOUT IS WHAT'S CALLED A SECTION 115 TRUST. AND SOME OF THE BOARD WAS ACTUALLY HERE IN 2020 WHEN WE CAME IN AND UPDATED THE SECTION 115 TRUST. WHAT THAT IS, IT'S AN IRREVOCABLE TRUST THAT IS ALLOWED THROUGH INTERNAL REVENUE CODE 115, SECTION 115, THAT ALLOWS BASICALLY TWO TYPES OF SUBACCOUNTS TO LIVE IN A TRUST, ONE FOR FUTURE PENSION OBLIGATIONS AND THEN

[02:10:02]

SO WHAT HAS HAPPENED SINCE 2008 IS THOSE DOLLARS HAVE GONE IN UNDER THE IDEA AND THE PREMISE THAT THAT WOULD SERVE ALMOST AS BASICALLY AN ENDOWMENT. YOU KNOW, YOU EVENTUALLY GET TO A DAY WHERE YOU'VE MADE ENOUGH DEPOSITS IN THAT YOUR RETURNS ARE GROWING AT A PACE THAT GETS YOU TO WHERE YOU ARE FUNDED AT AN 82.5%. SO WHAT HAPPENS WITH AN ACTUARIAL STUDY, WHICH HAPPENS EACH YEAR, IS THEY ARE DETERMINING WHAT THE FUTURE LIABILITY IS THAT THE COUNTY WILL INCUR AND WHAT WE NEED TO CONTRIBUTE AND WHAT WE NEED TO HAVE ON BOOKS TO OFFSET THAT. SO WHEN THEY SAY THIS IS WHAT WE ARE THINKING THAT YOU'RE GOING TO OWE, AND IT'S AN ACTUARIAL, RIGHT? THEY'RE GUESSING HOW MANY PEOPLE ARE GOING TO RETIRE, HOW OLD THEY'RE GOING TO BE, HOW LONG THEY'RE GOING TO LIVE, ARE THEY MALE, ARE THEY FEMALE, ALL THOSE DIFFERENT ACTUARIAL TABLES THAT COME INTO BUILDING THAT DOLLAR AMOUNT. AND SO THAT'S WHERE YOU GET TO THAT 82.5%. THEY'RE SAYING IF, YOU KNOW, EVERYTHING WAS DUE TODAY, THIS IS WHAT IT WOULD BE, THIS IS WHAT YOU HAVE, YOU HAVE 82.5% OF IT. AS TINA MENTIONED, 70% BEING A BEST PRACTICE, SOME AREAS THEY JUST PAY THE BILL.

RIGHT? THEY PAY IT AS THEY GO. WE ARE REQUIRED TO DO THAT STUDY SO IT CAN BE SHOWN IN OUR BOOKS AS PART OF THE ACFR, PART OF OUR FINANCIAL STATEMENTS.

SO, YOU KNOW, POTENTIAL INVESTORS, YOUR MEASURE V ROAD BONDS KNOW, HEY, THIS IS OUT THERE THAT THIS ORGANIZATION WILL HAVE TO COVER. AND SO VERY PROUD OF THE WORK THAT THIS BOARD HAS DONE TO ENSURE THAT THOSE DOLLARS ARE THERE. AND SO WHAT ENDS UP HAPPENING IS, IS IS YOU EVENTUALLY, AND I'VE USED THE ANALOGY OF, YOU KNOW, PEOPLE SAY, OH, IF I HIT THE LOTTERY, I'D LIVE ON THE INTEREST, RIGHT? I'D PUT IT IN THE BANK AND LIVE ON THE INTEREST. THAT'S THE ULTIMATE GOAL WHEN YOU SET ONE OF THESE UP. AND YOU HAVE TO, YOU HAVE TO REVIEW THAT EACH YEAR BECAUSE THE ACTUARIAL COULD CHANGE, RIGHT? IT WILL CHANGE. IT'LL LOOK AT, YOU KNOW, WELL, NOW BASED ON RETURNS, YOU'RE AT 88% OR 90% OR 75%. SO WHEN TINA MENTIONED LOOKING AT WHERE THAT COMFORT LEVEL IS, THAT ULTIMATELY IS, IS, IS A DECISION POINT OF THE BOARD. AND, AND YOU LOOK AT THAT EACH, EACH YEAR. SO ONE OF THE STRATEGIES THAT, THAT SHE'S HIGHLIGHTED HERE THAT WE'VE DISCUSSED IS, IS IT THAT TIME TO START LOOKING AT THAT AND SAYING, OKAY, CAN WE, YOU KNOW, USE WHAT WE ARE EARNING TO ACTUALLY PAY THE BILL, THUS CREATING BUDGETARY SAVINGS THAT WE COULD PERHAPS USED TO OFFSET THOSE COSTS AT THE ACTIVE LEVEL. ONE THING TO POINT OUT IS, YOU KNOW, ANY RETIREES THAT ARE RECEIVING THAT BENEFIT EITHER WORKED HERE 10 YEARS AND RETIRED AFTER THE AGE OF, AT 55 OR OLDER, OR WORKED 30 YEARS, JUST, YOU KNOW, THEY STARTED AT 20, THEY RETIRED AT 50. AND SO IN THEORY, THEY HAVE BEEN PAYING THOSE, THOSE RATES TO RECEIVE THAT BENEFIT GOING FORWARD. THOSE ARE THINGS THINGS THAT ARE BARGAINED AS WELL. AND SO, YOU KNOW, AS AN OVERALL PHILOSOPHICAL DECISION, AS TINA MENTIONED, THAT IS SOMETHING THAT WE WOULD LOOK AT AS PART OF ONE OF THE RECOMMENDATIONS HERE. I AM HAPPY TO ANSWER ANY MORE QUESTIONS IF I WAS, IF YOU NEED ANY MORE DETAIL.

NO, I AM GOOD.

THANK YOU.

OKAY. CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR. AND IT IS, IF I WANT THE PUBLIC TO UNDERSTAND, THERE MIGHT NOT BE A LOT OF QUESTIONS THAT YOU'RE HEARING US ANSWER BECAUSE WE ALL SAW THIS PRESENTATION THIS PAST WEEK. I DON'T KNOW, MY DAYS ARE RUNNING TOGETHER. I SAW THIS PRESENTATION BEFORE, SO A LOT OF THIS INFORMATION WE'RE GOING OVER, IT IS A LOT OF INFORMATION, AND I WANT TO THANK STAFF FOR LISTENING TO THE BOARD AS WE ENGAGE IN THIS PROCESS. NOW, I DON'T KNOW, IT'S BEEN A LITTLE WHILE AGO THAT WE ASKED TO, SO AS PART OF THAT, I WANT TO REMIND STAFF, THE CEO, I ASKED FOR AND HOPE THAT WE'RE WORKING

[02:15:02]

WE'VE GOT TO TALK TO COUNSEL WHETHER IT'S AN AD HOC COMMITTEE, A STANDING COMMITTEE. I DO REALLY THINK BECAUSE IT IS VERY IMPORTANT TO OUR EMPLOYEES. YOU KNOW, AS SOMEONE WHO'S ACTUALLY ON THE CAMPAIGN TRAIL AND WHEN I GO AND TALK TO ONE OF MY 58,000 BOSSES WHEN I'M OUT THERE, YOU KNOW, THEY MIGHT BE A COUNTY EMPLOYEE BUT THEY'RE MY BOSS AND WE'VE HAD CONVERSATIONS AROUND THESE THINGS AND IT'S A HUGELY IMPORTANT ISSUE. AND SO I JUST THINK FOR CONTINUITY, FOR, SO THAT THERE IS THIS, THIS KIND OF KNOWLEDGE TRAIN, IF YOU WILL, HAVING A COUPLE BOARD MEMBERS THAT SIT ON IT WITH THE KEY, YOU KNOW, AND I'LL LEAVE IT UP TO YOU GUYS TO FIGURE OUT WHO ARE THE KEY DEPARTMENT HEADS THAT NEED TO BE A PART OF THAT, BECAUSE WE'RE ASKED TO MAKE REALLY IMPORTANT DECISIONS ON THESE THINGS. AND SO I WANT TO MAKE SURE THAT AS PART OF THIS FULL RECOMMENDATION THAT COMES FORWARD, THAT THAT IS STILL TAKEN INTO CONSIDERATION, THAT THAT COMMITTEE IS SET UP.

IT'S, YOU KNOW, I MEAN, I HATE TO SAY THIS, BUT IT'S WHEN WE TALK ABOUT OUR EXPERIENCE, THAT'S, THAT IS, YOU KNOW, WE'RE PART OF A POOL THAT GETS US, GETS US BENEFITS OF BEING A PART OF A LARGER GROUP. BUT WITHIN THAT POOL, THEY LOOK AT OUR OWN INDIVIDUAL EXPERIENCES.

THAT MEANS WHAT OUR EMPLOYEES, AND QUITE HONESTLY, OUR EMPLOYEES ARE NOT BEING VERY HEALTHY. AND, AND ONE OF THE THINGS THAT STUCK OUT TO ME ME MOST IN THAT PRESENTATION IS IF YOU GO TO THE SLIDE THAT SHOWS PEOPLE THAT, YOU KNOW, YOU'RE PRESCRIBED MEDICATION AND THEN WE KNOW THAT IT'S A 30-DAY PRESCRIPTION BUT YOU'RE NOT COMING BACK UNTIL 60 DAYS TO, SO, AND, AND I DON'T KNOW IF YOU'LL FIND IT THERE. OH, RIGHT THERE. WHEN YOU SEE ON DIABETES TYPE MEDICINE THAT WE ONLY HAVE, OR THE 34% COMPLIANT. 66% OF THE, OF THE POPULATION THAT'S ON HYPERDEMIA, HYPERLIPIDEMIA, I DON'T WANT TO MESS THAT UP, 66% ARE FOLLOWING IT. THAT ALL GOES INTO, YOU KNOW, WHEN WE HAD COVID HAPPEN, HOSPITAL SHUTDOWN, SURGERIES WAS CRAZY, AND PEOPLE WEREN'T DOING THE PREVENTATIVE CARE. SO ANY OPTIONS THAT ARE PRESENTED TO US THAT LOOKS AT WAYS, AND I HATE TO DO IT BECAUSE IT'S YOUR OWN HEALTH, RIGHT? AND I'M JUST AS GUILTY AS THE NEXT GUY. I MEAN, I DIDN'T GO GET MY COUGH LOOKED AT UNTIL I COULDN'T BE IN A BRIEFING BECAUSE IT GOT A HOLD OF ME, RIGHT? SO I'M, I'M NOT SAYING THAT I'M IMMUNE TO THIS STUFF. I'M, I'VE GOT TO ACTUALLY PRACTICE WHAT I PREACH HERE. BUT OUR, IT'S LIKE, HELP US HELP YOU. AS THESE HEALTHCARE RATES GO UP, ONE OF THE THINGS THAT I HOPE PEOPLE TOOK OUT OF THAT IS THERE'S THE NORMAL COST, I'M GOING TO CALL IT, FOR LACK OF BETTER WORDS. IT'S JUST BECAUSE OF INFLATION, COST OF GETTING MEDICAL SERVICES DELIVERED TO YOU ARE GOING UP.

BUT THEN THERE'S A PORTION OF THAT RATE THAT GOES UP IS BASED 100% ON WHAT OUR EXPERIENCES ARE.

AND SO ANYTHING THAT WE CAN DO TO TRY TO HELP FOLKS HELP THEMSELVES TO BRING THAT DOWN, AND THIS ISN'T GOING TO HAPPEN OVERNIGHT, RIGHT? THIS IS, WE'RE LOOKING AT KIND OF LIKE WE'RE TRYING TO CHANGE BEHAVIORS. IT'S GOING TO TAKE LONG TERM. ONE OF THE THINGS THAT I WAS, I WAS, YOU KNOW, THE EMERGENCY EMERGENCY ROOM VISITS. I GET IT, WE LIVE IN A HEALTHCARE DESERT, BUT THERE ARE, THERE ARE OTHER OPTIONS OUT THERE WITH URGENT CARES, WITH, WITH RURAL HEALTH CLINICS.

AND, AND I DO THINK THAT EXPLORING SOMETHING THAT INCREASES THAT DEDUCTIBLE ON ER VISITS, NOW, UNDERSTANDING THAT ISN'T, THAT ISN'T REALLY, THAT'S NOT DESIGNED TO, IF YOU TRULY NEED TO GO TO THE ER AND GET ADMITTED, THE DEDUCTIBLE IS WAIVED. BUT IF YOU'RE JUST USING THE ER PRIMARY CARE DOCTOR, IT MIGHT SOUND CONVENIENT AT THE TIME, BUT WHAT THAT'S DOING IS COSTING ALL OF US, RIGHT? THAT'S COSTING ALL OF US IN HIGHER RATES. SO ANY OF THOSE TYPE OF SOLUTIONS THAT YOU'VE RECOMMENDED ARE THINGS THAT I AM WILLING TO AND WANT TO LISTEN TO, TO FIGURE OUT HOW, YOU KNOW, I REALLY LIKE THE IDEA BECAUSE WE DO HAVE YOUNG EMPLOYEES THAT ARE HAVING YOUNG FAMILIES, AND WHEN YOU, WHEN NOW THEY GOT TO CRACK THAT NUT OF NOT JUST THE EMPLOYEE ONLY.

THAT'S A BIG COST TO THEM.

AND, YOU KNOW, LET'S BE REAL ABOUT IT. YOU CAN LOOK AT WHAT THE AVERAGE WAGE OF OUR EMPLOYEES ARE, BUT THAT AVERAGE TELLS YOU WE HAVE THE TOP END AND YOU HAVE THE LOW END. SOME OF OUR ENTRY-LEVEL EMPLOYEES, I MEAN, IF YOU LOOK AT WHAT THEIR SALARIES ARE AND YOU LOOK AT WHAT IT IS FOR HEALTHCARE, I MEAN, BASICALLY THEY'RE WORKING JUST TO COVER HEALTHCARE, RIGHT? THAT'S UNFORTUNATE. SO ANY OF THOSE THINGS THAT WE CAN DO.

AND THEN I GUESS THE QUESTION THAT I HAVE FOR YOU, MR. HENDERSON, AND ANYBODY IS, IS WE HAVE THESE RECOMMENDATIONS.

I REALLY WANT TO LEAVE THIS MEETING WITH WHAT ARE THE NEXT STEPS? WHEN ARE, IS THIS SOMETHING THAT IN THE NEXT FEW MONTHS THAT WE'RE GOING TO START WORKING ON? AND I WANT YOU TO BE REALISTIC WITH ME. IF SOME OF THESE THINGS ARE LONGER TERM, THAT THIS IS LIKE A MULTIPLE-YEAR IMPLEMENTATION PROCESS, I WANT TO UNDERSTAND THAT AND KNOW THAT.

BUT THAT'S KIND OF WHAT I WANT. WE'VE DONE THE HARD WORK, I WILL SAY. WELL, WE'VE DONE THE INITIAL WORK, COLLECTING THE DATA, PUTTING IT ALL TOGETHER IN A PRESENTATION, BUT THEN NOW FOR ME AS A POLICYMAKER, WHAT ARE THE NEXT STEPS? WHAT COULD WE LOOK FORWARD TO? WHEN ARE WE GOING TO SEE SOME, MAYBE SOME CHANGES BE AFFECTED? THANK YOU.

WELL, AND I THINK A BIG PORTION

[02:20:02]

NOT IMPLEMENTATION, THEY'RE ALREADY BEING IMPLEMENTED.

GETTING THEM ENGAGED INTO THE PROGRAM, PROGRAMS THEY'RE DOING. YOU KNOW, YOU'VE BEEN TALKING A LOT THERE, SUPERVISOR.

JUST THE OTHER THING TOO IS, IS, AND I'VE SAID THIS, AND I KNOW THAT SOME OF OUR FOLKS THAT ARE IN THE ROOM FROM THE HEALTHCARE SIDE OF THE HOUSE BACK THERE IN HR, IS I STILL THINK THAT WE, WE DO NEED TO DO A BETTER JOB AT EDUCATING. AND I REALLY THINK THAT WE HAVE THIS HEALTHCARE TRUST, RIGHT? AND I JUST DO SIMPLE MATH. FIND ME WHAT A FULLY LOADED EMPLOYEE, WE BRING ON 2 EMPLOYEES AT THEIR SOLE JOB THERE'S 02,500 EMPLOYEES IN MERCED COUNTY, GIVE OR TAKE, RIGHT, THROUGH NEW EMPLOYEE ORIENTATIONS. BUT THEN THAT, OKAY, THAT TAKES CARE OF ANY NEW ONES, BUT WE HAVE EMPLOYEES THAT HAVE BEEN HERE A LONG TIME. I REALLY THINK LOOKING AT A SOLUTION, A STRATEGY WHERE YOU BRING ON 2 PEOPLE THAT THEIR SOLE JOB IS TO MAKE TIME, FIND, THEY'RE AT WORK, YOU STEAL THEM FOR HALF AN HOUR TO REALLY GO INTO DEPTH. BECAUSE I CAN LOOK AT THIS, I CAN YOU GUYS CAN SEND ME THE SHEET OF WHAT EACH PLAN COSTS AND ALL THAT, BUT YOU REALLY NEED SOMEBODY THAT'S GONNA BREAK IT DOWN INTO TERMS IN WHICH THE AVERAGE EVERYDAY EMPLOYEE CAN EXPLAIN AND HELP THEM UNDERSTAND. BECAUSE THERE IS, I MEAN, WE HAD THE $200 PLAN VERSUS THE $500 PLAN.

THERE WAS NO GOOD REASON TO BE IN THE $200 PLAN. ALL IT'S DOING IS COSTING YOU MORE MONEY. YOU WERE GETTING NEARLY THE SAME SERVICES IN THE $500 PLAN THAN YOU WERE IN THE $200 PLAN. AND I KNOW WE DON'T HAVE THAT NOW, BUT WHEN YOU LOOKED AT YOUR OVERALL OUT-OF-POCKET EXPENSE FOR A FAMILY, I WANT TO SAY IT WAS THE NUMBER, DON'T QUOTE ME ON IT, BUT IT WAS LIKE $3,000, $4,000 HIGHER THAN BEING IN THE 500 PLAN. THOSE ARE THE THINGS THAT I THINK THAT EMPLOYEES NEED TO UNDERSTAND SO THAT THEY, WE CAN HELP THEM MAKE BETTER CHOICES ABOUT THEIR HEALTHCARE.

YEAH, I THINK MAYBE WHENEVER DURING THE NEW HIRE, HAVE THEM DOWNLOAD THE APP FOR TELEHEALTH RIGHT THEN AS WELL, BECAUSE YEAH, I LIKE HOW YOU SAID IT. YOU KNOW, WHEN YOU'RE SICK AND YOU NEED IT AND YOU'RE TRYING TO GET THE CREDIT CARD IN THERE, YOU DON'T FEEL LIKE DOING IT. SO, CHAIR RECOGNIZES SUPERVISOR PAREIRA.

I DON'T MIND. OKAY.

ALL RIGHT.

ONE MORE TIME, PLEASE. OKAY.

SO FIRST AND FOREMOST, I WANT TO THANK OUR STAFF AND TEAM AND TINA. FOR PUTTING THIS TOGETHER. I'VE BEEN ASKING FOR THIS FOR YEARS. AND SO, YOU KNOW, TO TAKE A BITE AT THE APPLE AND HAVE NO WORM IN IT FEELS REALLY, REALLY GOOD. AND SO I'M VERY, VERY HAPPY, AND I WANT TO JUST SHARE MY APPRECIATION FOR WHERE WE'RE AT. BECAUSE, YOU KNOW, HEALTH BENEFITS ARE, TO SOME DEGREE, FROM AN EMPLOYMENT STANDPOINT, RIGHT? IT CAN BE A BENEFIT.

AND I THINK A LOT OF PEOPLE THINK OF IT AS A, I DON'T KNOW, I DON'T WANT TO USE THE WORD RIGHT BECAUSE THAT, YOU KNOW, BUT THEY THINK OF IT AS IT'S SOMETHING I GET AND IT'S NOT A PART OF MY COMPENSATION, RIGHT? IT'S, I DON'T KNOW, ANYWAYS.

AND SO, BUT IT'S GOTTEN SO EXPENSIVE FOR BOTH THE EMPLOYEE AND FOR THE TAXPAYER THAT IT'S A SYSTEM THAT REALLY CAN'T CONTINUE, RIGHT? IF WE'RE GONNA PROVIDE PUBLIC SAFETY AND ROADS AND ALL THOSE THINGS, YOU KNOW, WE'VE GOT TO DO SOMETHING. AND SO I'M SUPER, SUPER EXCITED AND HAPPY THAT WE'RE WHERE WE ARE.

AS FAR AS WHAT MY NEXT STEPS WOULD BE, IS TO, YOU KNOW, ONE IS THAT WE, YOU KNOW, I CALL THIS PHASE 2 IN OUR PROCESS. AND SO MY REQUEST WOULD BE THAT WE, THE PHASE 3 INCLUDES THESE RECOMMENDATIONS THAT COME BACK TO US AS ANOTHER UPDATE, RIGHT? NOT NECESSARILY A, HEY, THIS IS WHAT WE RECOMMEND, YOU KNOW, BUT ANOTHER STEP THAT WE ALL GET TOGETHER, TAKE NEW DATA THAT WE ARE GOING TO HAVE FROM THIS DAY TO THE NEXT TIME, AND THEN DO THIS AGAIN.

BECAUSE WE WANT TO GET IT RIGHT, AND I THINK THAT THIS PROCESS CAN WORK REALLY WELL. SOME OF THE THOUGHTS THAT I HAVE ON THE NEXT STEPS WOULD BE, LIKE, I SEE THERE'S SOME VALUE TO KAISER. I HAVE A LOT OF PEOPLE TELL ME THAT THEY REALLY LIKE KAISER, THAT HAVE KAISER, UNTIL THEY HAVE A SOMETHING.

AND THEN KAISER IS MORE OF A STRUGGLE, RIGHT? AND SO, YOU KNOW, I JUST KIND OF WANT TO RESPECT THAT FOR FOLKS IF WE'RE GOING TO ALLOW THEM TO GO TO KAISER, BUT NOT LOCK THEM INTO FRUSTRATION DOWN THE ROAD. BUT, YOU KNOW, THINGS LIKE MAYBE GETTING KAISER TO COME TO OUR COUNTY, RIGHT? AND I MEAN, EVEN LIKE, YOU KNOW, ENTICE THEM TO COME

[02:25:03]

YOU KNOW, AND I DON'T KNOW, MAYBE WE DO HAVE A LOT OF EMPLOYEES THAT ARE GOING TO FEDERALLY QUALIFIED HEALTHCARE CLINICS, BUT IF NOT, AND IT IS A GOOD OPTION FOR PRIMARY DOCTORS, THEN, YOU KNOW, LET'S DO THOSE KINDS OF THINGS. UH, THE OTHER, THING WOULD BE TO, TO PULL, PULL OUR, OUR EMPLOYEES AND FIND OUT IF, ESPECIALLY IN VISION AND DENTAL, IF THERE ARE OTHER PLANS THAT THEY KNOW PEOPLE HAVE THAT THEY WOULD LIKE FOR US TO SWITCH TO. UM, I, I KNOW THE COST IS, ESPECIALLY ON THE ADMIN SIDE, IS MINIMAL, BUT, YOU KNOW, IF WE CAN SAVE MONEY, LET'S SAVE MONEY. AND THEN, YOU KNOW, AND I'VE BEEN ASKING FOR THIS, AND SUPERVISOR MCDANIEL MENTIONED IT, AND MY COLLEAGUES ALL HAVE REALLY, BUT IS TO INCENTIVIZE THE COST CONTROL. TO ME, THAT'S THE BIGGIE. AND, YOU KNOW, AND I'M GUILTY, RIGHT? WE HAVE THE WELLNESS REVOLUTION CENTER, AND, YOU KNOW, AND I'VE BEEN THERE A FEW TIMES, BUT I COULD HAVE GONE THERE MORE OFTEN. FOR OTHER THINGS THAT I MAYBE WENT TO MY DOCTOR FOR. AND SO, YOU KNOW, I THINK THAT WE SHOULD LOOK AT THAT. AND THEN REALLY ON THE ER, YOU KNOW, WHEN WE WERE DOING THE EMERGENCY SERVICES CONTRACT OR RFP, YOU KNOW, ONE OF MY THOUGHTS WAS, WELL, WE GET A LOT OF PEOPLE THAT CALL THE AMBULANCE JUST TO GET A RIDE TO THE HOSPITAL, EVEN IF THEY DON'T NEED IT, RIGHT? YOU KNOW, AND THERE'S PLENTY OF EXAMPLES OF PEOPLE THAT DID THAT. SO, YOU KNOW, I WAS THINKING, WELL, COULD THERE BE AN OFF-RAMP ON THE AMBULANCE IF THE STAFF REALIZED THEY DIDN'T NEED TO GO TO THE ER AND THEY COULD GO TO AN URGENT CARE CLINIC? WELL, WHY WOULDN'T WE ROUTE THEM THERE, RIGHT? BUT YOU CAN'T DO THAT, YOU KNOW. ANYWAYS, SO THERE'S LOTS OF WAYS TO LOOK AT THIS, AND I WANT US TO BE HOLISTIC AND LOOK AT ALL OF IT. THE OTHER IS FROM THE STAKEHOLDER STANDPOINT IS TO, IS TO FIGURE OUT IF WE'RE GONNA DO A STAKEHOLDER GROUP, WHICH I KIND OF THINK WE SHOULD.

SUPERVISOR SILVEIRA MENTIONED A COMMITTEE, AND I THINK YOU'RE THINKING BOARD MEMBER COMMITTEE, BUT MAYBE THAT COULD BE EXPANDED. AND SO I'VE GOT A FRIEND WHO BOUGHT A CHEVY PICKUP, AND HE GOT $22,000 OFF OF MSRP THROUGH SAVINGS THAT HE FOUND ON THE INTERNET, RIGHT? HE JOINED FARM BUREAU TO SAVE $500 ON HIS PICKUP, RIGHT? THIS GUY IS REALLY GOOD AT SAVING MONEY, RIGHT? AND FIGURING OUT WAYS TO CUT COSTS. AND, AND SO, YOU KNOW, ARE THERE PEOPLE THAT WORK FOR US THAT ARE, YOU KNOW, IN OUR GROUP AND IN OUR MIDST ALREADY THAT HAVE A VESTED INTEREST IN THIS THAT WE SHOULD REACH OUT TO AND BRING IN? YOU KNOW, I DON'T KNOW IF YOU GET DEPARTMENT HEADS TO RECOMMEND SOMEBODY, EVERY DEPARTMENT GETS TO PICK A PERSON, OR HOW THAT GOES, BUT, YOU KNOW, SOMETHING ALONG THOSE LINES. SO THAT, I THINK THAT'S ALL OTHER THAN THE THIRD PHASE CHECK-IN, YOU KNOW, AND I DON'T, YOU KNOW, I MEAN, I CAN'T PICK A DATE AND KNOW, BUT I WOULD LIKE FOR THAT TO NOT BE MORE THAN, YOU KNOW, 4 TO 6 MONTHS AWAY, SOONER. I MEAN, WE CAN DO THAT IN 2 OR 3 MONTHS, THAT'D BE GREAT. BUT, AND THEN I DON'T KNOW OUR CONTRACT WITH TINA'S, THE BALDWIN GROUP, YOU KNOW, IF THIS ENDS THAT OR, AND IF THERE'S, YOU KNOW, IF THEIR GROUP PROVIDES ASSISTANCE IN THE NEXT PHASE OR IF THERE'S ANOTHER ORGANIZATION THAT DOES THAT, YOU KNOW, I WANT US TO LOOK AT THAT AND HAVE THAT DONE.

OKAY, WE'LL GO AHEAD AND GO TO, CHAIR RECOGNIZES SUPERVISOR PEDROZO.

YEAH, NO, I THINK A LOT HAS ALREADY BEEN SAID. I THINK THAT THE RECOMMENDATIONS NEED TO BE EVALUATED, BUT I'M GOING TO SAVE SOME OF MY COMMENTS BECAUSE I'D LIKE TO KNOW THE ANSWER TO MY COLLEAGUE SUPERVISOR SILVEIRA'S QUESTION, LIKE WHAT ARE THE NEXT STEPS? BECAUSE I DON'T WANT TO JUST HAVE THIS OUT THERE AND IT'S THERE AND THEN DOESN'T PROVIDE US WITH ANYTHING MOVING FORWARD. I DO WANT TO SAY THOUGH, YOU KNOW, WITH, I THINK THAT WE DON'T DO A GOOD ENOUGH JOB IN EDUCATING OUR EMPLOYEES ABOUT DIFFERENT THINGS. I MEAN, WE HAD THE CLINIC THAT WE VOTED ON, NUMBER 16 TODAY, RIGHT? AND I DIDN'T,

[02:30:03]

AND I BET YOU A LOT OF EMPLOYEES DON'T EVEN KNOW WE HAVE A CLINIC. I MEAN, THAT'S JUST THE REALITY OF THE SITUATION. AND SO I THINK THAT WE NEED TO DO A BETTER JOB AS OPPOSED TO, AND I SAID THIS IN MY BRIEFING, IS THAT WE GET SO MANY DIFFERENT EMAILS LIKE MERCED WELLNESS AND HOW MANY PEOPLE JUST GLANCE OVER IT? I MEAN, A LOT OF PEOPLE DO. THAT'S JUST THE REALITY OF IT. AND SO IF WE'RE NOT TAKING THE TIME TO ENGAGE WITH PEOPLE, THEN REALLY IT'S ON US. I THINK THAT WE NEED TO DO A BETTER JOB AT THAT.

AND I REALLY THINK THAT WE ALSO NEED TO LOOK AT THE RETIREE ASPECT OF IT BECAUSE I THINK THAT'S INCREDIBLY IMPORTANT. NOW, HAVING TWO OF MY PARENTS RETIRED FROM THE COUNTY, THEY MIGHT, I MIGHT NOT BE THE MOST POPULAR, OF THE CHILDREN, BUT, I THINK IT'S IMPORTANT BECAUSE I THINK WE HAVE TO LESSEN THE COST, OR THE IMPACT, THE FINANCIAL IMPACT ON THE YOUNGER FAMILIES AND THE PEOPLE THAT ARE WORKING HERE NOW, AS OPPOSED TO, YOU THE PEOPLE THAT HAVE WORKED HERE. I APPRECIATE THEIR SERVICE, BUT WE HAVE TO REALLY DO A BETTER JOB AT TAKING CARE OF OUR EMPLOYEES. SO WITH THAT, I THINK EVERYTHING HAS ALREADY BEEN SAID BY MY COLLEAGUE FROM DISTRICT 5 BECAUSE I THINK HE GETS PAID BY THE WARD.

CHAIR RECOGNIZES SUPERVISOR PEDROZO, OR PACHECO.

THANK YOU, CHAIR. I JUST, THE COMMITTEE IDEA THAT SUPERVISOR SILVEIRA PUT OUT, I THINK IT'S A REALLY GOOD IDEA.

AND I DON'T KNOW IF YOU MEANT IT, BUT I THINK WE NEED TO HAVE EMPLOYEES ON THAT COMMITTEE ALSO, HAVE A LITTLE OWNERSHIP IN IT. SO IT'S NOT, HEY, THIS IS WHAT THE COUNTY'S GIVING YOU. IT'S LIKE, THIS IS WHAT WE'RE DOING TOGETHER. AND SO THEY CAN HAVE SOME INPUT.

AND, YOU KNOW, THEY'RE THE ONES ON THE FRONT LINE, THEY'RE THE ONES PAYING. SO MAYBE IF EMPLOYEES FROM DIFFERENT DEPARTMENTS ARE ON THOSE COMMITTEES TOO, THEY WILL HAVE MORE OWNERSHIP IN IT AND HELP OUT. THEY CAN DO SOME OF THE OUTREACH AND EDUCATION ALSO BECAUSE THEY WILL KNOW WHAT THE PLAN IS. I DO WANT TO SAY THANK YOU FOR THE PRESENTATION. IT IS REALLY GOOD, KIND OF EYE-OPENING.

YEAH, THANK YOU.

THANK YOU. CHAIR RECOGNIZES MARK HENDRICKSON.

MR. CHAIRMAN, MEMBERS OF THE BOARD, I AM GOING TO KIND OF COME BACK TO BOTH SUPERVISOR SILVEIRA'S QUESTION ALONG WITH SUPERVISOR PAREIRA'S SUGGESTIONS AS WELL. SO I THINK IN TERMS OF IMMEDIATE NEXT STEPS, I THINK CLEARLY ONE THING THAT WE HAVE LEARNED THROUGHOUT THIS PROCESS IS WE HAVE TO ENGAGE WITH OUR EMPLOYEES A LITTLE BIT DIFFERENTLY. SO THAT'S GOING TO BE STARTING IMMEDIATELY.

THAT WILL NOT BE SOMETHING THAT WE, THAT WE WAIT AND LET TOO MUCH GRASS GROW. WE'RE GOING TO BE TAKING A LOOK AT A WHOLE HOST OF THINGS TO INCLUDE POTENTIAL APPS THAT MIGHT BE EASY FOR OUR EMPLOYEES TO NAVIGATE SO AS TO IDENTIFY WHAT THEY CAN DO AND WHEN, ETC. I THINK THAT SUPERVISOR PAREIRA MADE A GOOD SUGGESTION SUGGESTION. I THINK THAT TO THE EXTENT THAT WE CAN RETURN TO YOU WITH TAKING A LOOK AT WHAT'S ON THE SCREEN TODAY WITHIN ABOUT A 4- TO 6-MONTH TIME PERIOD SO AS TO EVALUATE EACH OF THESE THINGS A LITTLE BIT FURTHER. I THINK WE CAN PROBABLY DO SOME OF THIS SOONER THAN THAT AND SOME OF IT MAY TAKE A LITTLE BIT LONGER THAN THAT. BUT I DO THINK THAT WE DO HAVE AN OPPORTUNITY TO AGAIN COME BACK TO THE BOARD, KEEP YOU FULLY ENGAGED. I DO THINK THAT WE COULD AGAIN ESTABLISH ESTABLISH A COMMITTEE RELATIVELY QUICKLY FOR THE PURPOSES OF HELPING, IF NOTHING ELSE, EVALUATE SOME OF THE STRATEGIES THAT WE ARE TAKING A LOOK AT TODAY. SO I THINK, MR. CHAIRMAN, I THINK WE CAN DO THAT WITHIN A 4- TO 6-MONTH PERIOD OF TIME, IF NOT SOONER.

YEAH, I THINK SOONER IS BETTER.

VERY GOOD.

YEAH, BECAUSE ALL THE WORK WE'VE DONE, I MEAN, A LOT OF IT'S ALREADY DONE. NOW IT'S HOW DO WE PROCEED. SUPERVISOR PEDROZO.

SO THANK YOU. I JUST WANTED TO SAY THANKS TO STAFF AND TO TINA'S GROUP FOR THE WORK THEY DID.

I KNOW THIS IS A BIG TASK, SO THANK YOU.

OKAY. THANK YOU.

AT THIS TIME, WE WILL OPEN UP FOR PUBLIC COMMENT FOR COUNTY EXECUTIVE OFFICE ITEM NUMBER 58. MR. PACHECO, DID YOU HAVE SOMETHING? NO, I AM SORRY. OKAY. I DON'T HAVE ANYTHING.

OKAY, PUBLIC COMMENT PERIOD FOR COUNTY EXECUTIVE OFFICE NUMBER 58 IS NOW CLOSED. UM, I'M NOT GOING TO LOOK FOR A MOTION. I THINK, NO, WE GOT, STAFF'S GOT, STAFF WAS GIVEN DIRECTION.

YEAH, SUPERVISOR PAREIRA DOES HAVE A COMMENT THOUGH.

I DON'T HAVE ANYTHING.

UH, CHAIR RECOGNIZES SUPERVISOR PAREIRA.

WELL, HEY, UNDER PRESSURE OF DURESS, I, I WAS GOING TO ASK KINA, AFTER YOU HEARD US KIND OF HAVE CONVERSATIONS, IS THERE ANYTHING THAT YOU KNOW FROM YOUR EXPERIENCE THAT WE MISSED GOING FORWARD, THAT COMMENTS WE MIGHT HAVE MADE THAT TRIGGERED SOMETHING THAT WASN'T IN YOUR PRESENTATION OR THAT WE DIDN'T TALK ABOUT? THAT'S ALL.

I DON'T WANT TO LOSE YOUR EXPERTISE BEFORE THE MEETING'S OVER.

THAT'S ALL. NO, I THINK THAT THE AMOUNT OF TIME THAT YOU GUYS TOOK TO EDUCATE YOURSELVES ON ALL OF THE PROCESS AND WHAT GOES INTO THE HEALTH INSURANCE IS OBVIOUSLY SHOWS THROUGH IN JUST YOUR UNDERSTANDING.

IT'S A LOT

[02:35:01]

AND SO THANK YOU FOR TAKING THE TIME THAT YOU DID. I THINK ONE THING THAT MR. SILVEIRA POINTED OUT WAS THE COMMITTEE. WE DO SEE THAT ON A REGULAR BASIS WITHIN CITIES AND COUNTIES.

HOW THE COMMITTEE IS FORMED CAN BE DIFFERENT. IT CAN BE BOARD MEMBERS, IT CAN BE SOMEBODY REPRESENTING FROM THE UNION REPRESENTATIVE, IT CAN BE EMPLOYEE REPRESENTATIVES. AND ALL COMING TOGETHER. THERE'S DIFFERENT WAYS TO FORM AND STRUCTURE THAT, BUT I THINK THAT THAT IS AN ABSOLUTE GREAT IDEA AND CAN HELP WITH MOVING SOME OF THESE, MOVING SOME OF THESE THINGS FORWARD. AND SO NOTHING REALLY TO ADD ON TO THAT OTHER THAN, AGAIN, YOU GUYS, I THINK, HAVE DONE A REALLY NICE JOB IN MAKING SURE THAT THE ANALYSIS WAS VERY IN-DEPTH AND WAS VERY THOROUGH. AND HIT EVERYTHING THAT COULD POTENTIALLY IMPACT THE PROGRAM. SO I THINK YOU GUYS DID A GREAT JOB.

THANK YOU.

OKAY, THANK YOU. AND THERE IS NO ACTION ON THIS ITEM AS WE ARE GIVEN DIRECTION. SO NEXT WE HAVE BOARD OF SUPERVISORS ITEM 59. AT THIS TIME, I'LL OPEN UP PUBLIC COMMENT FOR THE BOARD OF SUPERVISORS ITEM NUMBER 59.

HELLO.

HELLO, GOOD AFTERNOON. MY NAME IS SARAH SELLYWOOD AND I WORK WITH LEADERSHIP COUNCIL FOR JUSTICE AND ACCOUNTABILITY. I AM MAKING COMMENTS REGARDING ITEM 59, RECORDING THE ADOPTION OF TELEPHONIC AND INTERNET SERVICE DISRUPTIONS POLICY DURING PUBLIC MEETINGS IN ACCORDANCE TO SENATE BILL 707. WE ARE ENCOURAGED BY THE COUNTY DOING, DOING ITS DUE DILIGENCE ON PREPARING FOR THE IMPLEMENTATION OF THE LEGAL REQUIREMENTS OF SB 707 BEFORE THE JULY 1ST DEADLINE TO SUPPORT THE PUBLIC IN BEING CIVICALLY ENGAGED. SB 707 IS INTENDED TO DIVERSIFY AND INCREASE PUBLIC ENGAGEMENT IN LOCAL GOVERNMENT TO ENSURE THAT REGARDLESS OF LOCATION, RESIDENTS ARE ABLE TO PARTICIPATE IN DEMOCRATIC PROCESSES AND HELPING GUIDE POLICY AND PROGRAMS THAT IMPACT THEIR EVERYDAY LIFE. PUBLIC PARTICIPATION IS A CRUCIAL COMPONENT FOR THE BODY AS IT MAKES DECISIONS IMPACTING THIS ENTIRE CITY. AS PUBLIC SERVANTS, PLEASE USE SB 707 REQUIREMENTS AS AN OPPORTUNITY TO IMPROVE, IMPROVE THE PUBLIC'S ABILITY TO GIVE INPUT AS IT CONTRIBUTES TO GOOD GOVERNANCE AND IMPROVES YOUR ABILITY TO BETTER SERVE THE CITY AND COUNTY.

IN ADDITION TO SB 707 REQUIREMENTS, PLEASE ENSURE THAT THE UPCOMING PLAN DOES NOT DECREASE SPEAKING TIME AND THAT A MINIMUM OF 3 MINUTES PER PERSON IS ALLOWED, AND THAT ANY PUBLIC MEMBER HAS THE RIGHT TO THEIR ALLOTTED TIME WITHOUT LIMITS TO THE NUMBER OF SPEAKERS PER AGENDA ITEM.

THANK YOU. THANK YOU.

OKAY, WHAT'S THAT? PUBLIC, COMMENT PERIOD FOR BOARD OF SUPERVISORS. AGENDA ITEM 59 IS NOW CLOSED. WE WILL BRING IT BACK TO THE DAIS IF THERE IS FURTHER DISCUSSION.

SUPERVISOR PAREIRA.

YEAH, I JUST HAVE ONE QUESTION.

IN THE POLICY, IT REQUIRES THE, IF THERE IS A DISRUPTION, A 1-HOUR RECESS OR UNTIL THE SERVICE IS RESTORED.

IS THE 1-HOUR NUMBER, IS THAT STATUTE OR IS THAT SOMETHING WE ARE CHOOSING? LOOKING AT THE ASSISTANT CEO, I BELIEVE THE, THE ANSWER IS IT IS IN STATUTE, MR. SUPERVISOR PAREIRA.

THANK YOU.

YEAH, YOU'RE ON.

I WAS JUST GOING TO CONFIRM THAT IS THE STATUTE.

YEAH, 1 HOUR.

OH, NOW I GOT A QUESTION.

CHAIR RECOGNIZES SUPERVISOR SILVEIRA.

THANK YOU, MR. CHAIR. UM, SO SO I UNDERSTAND IT CLEARLY, IS IT IF THERE'S A DISRUPTION YOU HAVE TO RECESS FOR 1 HOUR AND THEN COME BACK, OR IS IT THAT IF IT'S FIXED IN 10 MINUTES WE CAN COME BACK IN 10 MINUTES? IT'S THE LATTER.

OKAY, I THOUGHT THAT OVER SHORTER.

YES, THANK YOU. SO MY MOTION, YES, YOU'RE STILL ON, SO CONFIRM THAT IN THE MIC.

NO, I DON'T THINK SO. OKAY, SO I HAVE A MOTION ON THE FLOOR.

SUPERVISOR SILVEIRA, SECONDED BY SUPERVISOR PACHECO. LET'S GO AHEAD AND CALL FOR THE VOTE.

LET'S RECORD THE VOTE. MOTION PASSES. NEXT WE HAVE BOARD APPOINTMENTS, ITEM 60. AT THIS TIME I'LL OPEN UP THE PUBLIC COMMENT FOR BOARD APPOINTMENTS, ITEM NUMBER 60.

PUBLIC COMMENT PERIOD FOR BOARD APPOINTMENTS, ITEM 60, IS NOW CLOSED. I HAVE, I'LL BRING IT BACK

[02:40:01]

[SCHEDULED ITEM]

IT'S A PLANNED PERIODIC UPDATE.

IT HAS, AND THERE'S 3 BASIC PURPOSES FOR THE ZONING CODE.

IT'S TO BASICALLY GO AHEAD AND SPECIFY HOW LAND MAY BE USED IN THE COUNTY. IT ESTABLISHES STANDARDS FOR THE LOCATION AND DESIGN AND DEVELOPMENT. AND IT ESTABLISHES THE PROCEDURES FOR THE REVIEW OF PROJECTS AND THE ADMINISTRATION OF THE ZONING CODE. THE LAST COMPREHENSIVE UPDATE OF THE ZONING CODE WAS IN 2019, AND THIS PARTICULAR UPDATE WAS A PLANNED ANNUAL UPDATE THAT INCORPORATES REFINEMENTS TO THE CODE AS WELL AS REFLECTS CORRECTIONS OF ISSUES AND UPDATES, AND INCLUDES UPDATES BASICALLY TO REFLECT CHANGES IN STATE LAW. THE SPECIFIC THE REVISIONS INCLUDED IN THE UPDATE INCLUDE SETBACK PROVISIONS FOR ACCESSORY STRUCTURES, CONSOLIDATING STANDARDS FOR NON-COMMERCIAL TEMPORARY SIGNS AND POLITICAL SIGNS, INCREASING THE NUMBER OF DAYS FOR SIGNS THAT MAY BE OUT FOR AN EVENT, ADDING DEFINITIONS FOR SPECIAL FLOOD HAZARD AREAS, UPDATING THE STANDARDS FOR ALL ACCESSORY DWELLING UNITS TO CONFORM WITH STATE LAW, AND THEN MINOR, MINOR MINOR TECHNICAL CHANGES AND CLARIFICATIONS THAT HAVE BEEN IDENTIFIED DUE TO INCONSISTENCIES WITH HOW THE ZONING CODE HAS BEEN IMPLEMENTED. ADDITIONALLY, STAFF WAS MADE AWARE THAT THERE WERE SOME QUESTIONS REGARDING THE ADU POLICY FOR, FOR THE COUNTY, AS WELL AS THE ABILITY FOR THE ADUS TO BE USED AS SHORT-TERM RENTALS. AND I'M HAPPY TO POINT OUT THERE ARE NO CHANGES TO THE COUNTY'S POLICY REGARDING SHORT-TERM RENTALS, WHICH CAN ONLY OCCUR IN THE PRIMARY RESIDENCE. SO THE ADU CHANGES WILL NOT, THAT ARE PROPOSED AS PART OF THE ZONING CODE UPDATE WILL NOT CHANGE THAT AT ALL. SO THIS CONCLUDES STAFF'S PRESENTATION.

I ALSO HAVE A MEMBER OF THE PLANNING STAFF, ONE OF OUR SENIOR PLANNERS, MARK HAMILTON, HERE AVAILABLE TO ADDRESS SPECIFIC CONCERNS OR COMMENTS REGARDING THE UPDATE.

AND THAT CONCLUDES STAFF'S PRESENTATION.

THANK YOU.

DO WE HAVE ANY QUESTIONS HERE AT THE DAIS? OH, YEAH. CHAIR RECOGNIZES SUPERVISOR PACHECO.

THANK YOU, CHAIR.

JUST, I THINK I TALKED TO DIRECTOR MIMS ABOUT THIS, BUT THIS IS, IF HE DIDN'T MENTION IT, THIS INCLUDES OUR DIGITAL SIGN ORDINANCE.

YEAH.

MARK HAMILTON, PLAN DIVISION.

SO FIRST OF ALL, I WOULD LIKE TO SAY THANK YOU TO CHAIR MCDANIEL, MEMBERS OF THE BOARD. OUR PLANNING STAFF WHO HAS WORKED TIRELESSLY TO GET THIS BROUGHT TO YOU THIS MORNING, ALSO TO MEMBERS OF THE COMMUNITY WHO HAVE PUT INPUT INTO OUR ZONING CODE UPDATES THAT ARE BEFORE YOU THIS MORNING, AS WELL AS BOARD MEMBERS WHO PROVIDE THEIR INSIGHT AND INPUT OVER THE PAST COUPLE MONTHS.

UM, YES, THAT IS CORRECT, THERE IS A DIGITAL BOARD COMPONENT TO THIS. ESSENTIALLY, THIS WAS ALREADY IN THE ZONING CODE FROM YEARS PRIOR. HOWEVER, WE JUST BASICALLY UPDATED THE ZONING CODE TO ALLOW FOR DIGITAL BOARDS TO BE OVER 25 FEET IN HEIGHT.

OKAY, AND IF THIS IS ADOPTED TODAY, WHEN CAN PEOPLE START APPLYING FOR IT? IT'D BE 30 DAYS FROM ADOPTION, OR BASICALLY JUNE OR JULY 2ND.

OKAY, WELL, THANK YOU VERY MUCH. I APPRECIATE YOUR STAFF BRINGING THIS FORWARD. I KNOW I HAD SOME CONSTITUENTS THAT WERE CALLING ME ABOUT IT, AND SO I APPRECIATE IT COMING FORWARD, AND I ENCOURAGE THE BOARD TO VOTE YES ON THIS SO WE CAN COME INTO THE DIGITAL AGE.

THANK YOU.

THANK YOU. SAY, WERE THEY FOR IT OR AGAINST IT? FOR IT. I'M SO FOR IT.

I'M FOR IT.

OKAY, CHAIR RECOGNIZES SUPERVISOR PEDROZO.

NO, SUPERVISOR PACHECO ASKED MY QUESTIONS, BUT I'M JUST HAPPY THAT THIS, THIS HAS TAKEN A REALLY LONG TIME TO GET DONE, BUT I, I APPRECIATE THE WORK THAT'S GONE INTO IT. SO, I'M JUST GLAD THAT WE'RE WE'RE FINALLY KIND OF WRAPPING THIS UP BECAUSE I KNOW THAT I MET WITH SOME OF THE SAME CONSTITUENTS THAT SUPERVISOR PACHECO HAD TALKED

[02:45:01]

OKAY. SEEING NO OTHER COMMENTS HERE AT THE DAIS, I WILL NOW OPEN UP THE PUBLIC HEARING AND ACCEPT PUBLIC COMMENT REGARDING THIS TESTIMONY. TESTIMONY IS LIMITED TO ONLY 3 MINUTES PER PERSON. OKAY, I WILL NOW CLOSE THE PUBLIC HEARING ON THIS ITEM, AND I WILL ENTERTAIN A MOTION. I HAVE A MOTION.

SECOND.

AND A SECOND. IS THERE FURTHER DISCUSSION ON THIS ITEM? WHO'S YOUR MOTION BY? SUPERVISOR PACHECO. OH, I THOUGHT SHE GOT IT. YES.

OKAY, I HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR SIGNIFY

[REPORTS/BOARD DIRECTION]

AT THIS TIME, WE'LL HAVE BOARD REPORTS, STARTING WITH SUPERVISOR SILVEIRA.

YEP, NOPE, THERE WE GO. THANK YOU, MR. CHAIR. JUST A COUPLE THINGS I WANTED TO HIGHLIGHT.

SINCE THE LAST MEETING, I ATTENDED THE CSAC LEGISLATIVE CONFERENCE IN SACRAMENTO FOR A FEW DAYS A COUPLE WEEKS AGO.

REALLY, THE HIGHLIGHTS ARE ON HR 1. THE GOVERNOR'S MAY REVISE BASICALLY THUMBED HIS NOSE AT CALIFORNIA COUNTIES.

WHERE THE ASK WAS, YOU KNOW, SOMEWHERE AROUND $1.8 BILLION, AND I THINK THE NUMBER THAT HE PUT IN THE BUDGET WAS $21 MILLION, GIVE OR TAKE. AND THEN NOW GOES TO THE SENATE AND THE ASSEMBLY, WHO THE SENATE HAS KIND OF PUT THEIR PROPOSAL OUT, AND THE ASSEMBLY IS CURRENTLY WORKING ON THEIRS. BEEN IN CONTACT WITH BOTH OF OUR, OUR STATE SENATOR AND OUR STATE ASSEMBLY MEMBER, LETTING THEM KNOW. ONE OF THE THINGS THAT I HIGHLIGHTED AT THE CONFERENCE IN A COUPLE SESSIONS AND THEN HIGHLIGHTED TO OUR STATE ELECTEDS IS THAT AS ELECTED OFFICIALS, THE NUMBER ONE THING THAT WE ARE TASKED WITH AS ANY ELECTED OFFICIAL, WHETHER IT'S CITY, STATE, COUNTY, OR FEDERAL, YOU KNOW, WE ARE TASKED WITH PROVIDING FOR THE HEALTH, WELFARE, AND SAFETY OF OUR CITIZENS.

AND REALLY, FOR ME, WHEN IT COMES TO THE EFFECTS OF HR 1 AND WHAT IT DOES TO CALIFORNIA COUNTIES, IF WE PUT THE THOSE THINGS FIRST, THE HEALTH, WELFARE, AND SAFETY OF OUR CITIZENS, THEN IT SHOULD BE A NO-BRAINER.

THE, THE, THE $2 BILLION IS A LOT OF MONEY. I GET IT WHEN YOU'RE, WE'RE TALKING, YOU KNOW, MERCED COUNTY HAS A $1.15 BILLION BUDGET, BUT WHEN YOU'RE TALKING ABOUT A STATE THAT HAS OVER $300 BILLION BUDGET, FINDING ROUGHLY $2 BILLION IN THE FIRST YEAR AND $4 BILLION IN THE SECOND YEAR SHOULDN'T BE THAT HARD, BUT IT DOESN'T NECESSARILY SEEM LIKE IT'S THAT EASY UP THERE IN SACRAMENTO. SO ON FRIDAY WE HAD A MEETING AT THE CAPITOL WITH A COUPLE OF STATE, OUR STATE SENATOR AND SENATOR, I THINK IT'S STERN, IS WHO IS THE CHAIR OF THE SENATE BUDGET COMMITTEE. IT REALLY, IT'S REALLY KIND OF DISHEARTENING THAT THERE'S, YOU KNOW, THEIR ONLY ANSWER TO THINGS IS THAT THEY'RE GONNA HAVE TO RAISE REVENUES, WHICH MEANS RAISE TAXES. AND AGAIN, IF WE'RE REALLY TALKING ABOUT THE HEALTH, WELFARE, AND SAFETY OF OUR CITIZENS, THERE'S OTHER THINGS THAT SHOULD BE CUT FIRST BEFORE WE RAISE TAXES. TAXES.

BUT THAT'S JUST MY OWN HUMBLE OPINION. SO I WANT TO HIGHLIGHT THAT, THAT I WAS THERE. I WANT TO THANK LIEUTENANT COMMANDER JOE DANIELS, WHO IS THE NEW COMMANDER, WELL, HE'S A LIEUTENANT COMMANDER FOR THE LAS PANAS BRANCH OF CHP. HE TOOK THE OPPORTUNITY TO MAKE TIME TO MEET WITH ALL 05, I THINK ALL 5 OF US. I KNOW HE HAD MEETINGS SET UP. AND SO JUST A REALLY GOOD WAY TO KIND OF OPEN UP THOSE DOORS OF COMMUNICATIONS. YOU KNOW, TYPICALLY OVER HERE WELL, 3 OF MY COLLEAGUES, 2 OF MY COLLEAGUES REPRESENT PARTS OF THE WESTSIDE WHICH FALL UNDER HIS JURISDICTION, SO I WAS REALLY HAPPY TO MEET WITH HIM AND FOR HIM TO MEET WITH ALL MY COLLEAGUES. AND THEN LAST BUT NOT LEAST, TODAY, IF YOU GUYS HAVEN'T FIGURED IT OUT, IS ELECTION DAY. SO WHOEVER YOU CHOOSE TO VOTE FOR, I WOULD ENCOURAGE YOU TO GET OUT AND VOTE. YOU'VE HAD YOUR BALLOTS MAILED OUT TO YOU SINCE MAY 4TH, AND I KNOW IF YOU'RE A PERSON THAT LIKES TO GO VOTE IN PERSON, THAT'S, THAT'S GREAT, YOU CAN DO THAT.

BUT JUST SO YOU KNOW, THOSE PEOPLE THAT LIKE TO COME AND DROP THEIR BALLOT OFF ON THE LAST DAY, YOUR VOTES ARE GOING TO BE THE ONES THAT ARE GOING TO BE COUNTED IN THE DAYS AND WEEKS AFTER THE ELECTION. IF YOU LIKE YOUR VOTE TO COME OUT RIGHT AT THOSE NUMBERS AT , I WOULD ENCOURAGE YOU TO GET THOSE VOTES IN EARLY.

AND THAT'S ALL I HAVE, MR. CHAIR.

THANK YOU.

YEAH, A LITTLE LATE TO BE EARLY.

[02:50:01]

YEAH, YOU GOT ME WELL TRAINED.

SO I TOO ATTENDED CSAC LEDGE DAY AND JUST WANNA, YOU KNOW, YOU GO TO THOSE AND YOU LEARN STUFF AND THEN YOU GET FRUSTRATED. AND SO ONE OF THE COMMITTEE MEETINGS I WENT TO WAS AG AND THE TOPIC WAS WATER. SO IT WAS DEPARTMENT OF WATER RESOURCES, STATE WATER QUALITY CONTROL BOARD, STATE WATER BOARD WERE THERE, THEY SPOKE. AND THEN AFTER THEY WERE DONE, WE HAD TWO HAD TWO LEGISLATURES COME IN AND SPEAK. AND IF YOU EVER WONDERED WHY WATER IN CALIFORNIA SEEMS LIKE IT SHOULD BE SIMPLE TO SOLVE AND IT IS NOT, IS BECAUSE YOU GOT TWO LEGISLATORS IN THE SAME BODY AND ONE OF THEM VERY AWARE OF GROUNDWATER, SIGMA, WHAT'S GOING ON, WHAT WE'RE DOING TO FIX IT.

THE OTHER ONE WHO ALSO HAS FARMING IN HIS COUNTY, NO CLUE. RIGHT, HAD NO IDEA OF WHAT WE DO, WHAT THE COUNTIES DO IN CONJUNCTION WITH, AND IT WAS JUST REALLY EYE-OPENING AND DISAPPOINTING. BUT ANYWAYS, BUT, YOU KNOW, GOOD CONVERSATION AFTERWARDS, AND I THINK HE LEARNED SOME STUFF FROM THE COMMITTEE SUPERVISORS THAT WERE IN THE COMMITTEE MEETING, AND I THINK IT WAS A MOVE FORWARD, BUT BOY, JUST REALLY KIND OF SHOCKING. I ATTENDED AFTER, LAST WEEK, DEPARTMENT OF PUBLIC WORKS HELD A NATIONAL PUBLIC WORKS EMPLOYEE APPRECIATION LUNCH, AND I GOT AN OPPORTUNITY TO GO OUT, AND DIRECTOR BRAY AND ASSISTANT DIRECTOR JOHNSON WERE THERE, AND REALLY GOT TO SHOW SOME LOVE TO THE GUYS AND GALS THAT WORK OUT THERE. SOME PEOPLE, YOU KNOW, YOU DON'T EVEN THINK OF THE JOBS THAT ARE IN DPW, SO I MET A FEW PEOPLE WHO DID JOBS I DIDN'T KNOW EXISTED OVER THERE, KINDA. AND SO ANYWAY, IT WAS EYE-OPENING FOR ME, AND I WILL SAY THAT I GOT TO WATCH THE NEW GRAPPLE TRUCK WORK. GOOD INVESTMENT, AND THIS NEXT WINTER WE'LL GET A LOT OF USE OUT OF THAT PIECE OF EQUIPMENT. I TOO MET LIEUTENANT DANIELS FROM LOS BANOS CHP OFFICE, AND, AND JUST KIND OF REALLY ENCOURAGING THAT HE WANTED TO COME IN AND CONNECT WITH US, AND, AND ALL OFFER HIS PHONE NUMBER SO THAT IF WE HAVE ISSUES, WE COULD FEEL COMFORTABLE IN CALLING HIM AND SHARING THEM WITH HIM. AND I THOUGHT THAT WAS GREAT. YESTERDAY, I HAD TWO MEETINGS, ONE IN SACRAMENTO. I AM HALF PORTUGUESE AND IT WAS PORTUGAL DAY. AND THERE WAS A RESOLUTION IN THE SENATE AND THE ASSEMBLY KIND OF RECOGNIZING THE RELATIONSHIP THAT THE PORTUGUESE COUNTRY, PORTUGAL AND THE PORTUGUESE CITIZENS OF HERITAGE IN CALIFORNIA AND THE CONTRIBUTIONS THEY PROVIDE. SO IT WAS KIND OF FUN TO CONNECT WITH SOME OF MY PEOPLE. AND LAST NIGHT, I WOULD LIKE TO THANK ANNA BROWNING, NATHAN BRAY, DR. SULLIVAN, AND C.O.

HENDRICKSON FOR HELPING ME HOST A COMMUNITY MEETING IN CRESSY, A COMMUNITY THAT FEELS THAT THEY ARE NOT LOVED AND, BY THE COUNTY AND, AND HAD SOME REQUESTS OF US.

AND I THINK IT WAS VERY PRODUCTIVE. I THINK WE CAME AWAY WITH SOME ACTION POINTS THAT WE COULD DO FOR THE COMMUNITY, SOME LONG-TERM ACTION POINTS.

AND THEN I THINK THE COMMUNITY NOW BETTER UNDERSTANDS WHAT WE CAN AND CAN'T DO. SO I THINK IT WAS A WIN-WIN FOR ALL. AND IT WAS ABOUT 50 PEOPLE OF A COMMUNITY OF JUST A FEW HUNDRED, SO, REALLY WELL ATTENDED AND, AND A LITTLE A LITTLE WARM IN THERE. OH, AND GINA LOPEZ CAME AS WELL. AND SO SHE WAS SITTING IN THERE WITH THE REST OF US IN THE SAUNA.

BUT THAT IS IT.

THANK YOU. THANK YOU.

SUPERVISOR PEDROZO.

THANK YOU. FIRST, I WANT TO CONGRATULATE ALL THE GRADUATES THIS WEEK. THEY'RE GRADUATING, SO CONGRATULATE THEM. THEN ALSO, WE PROVIDED A CERTIFICATE TO MADISON DIETZ BECOMING A CALIFORNIA STAR FARMER, WHICH I THINK IS REALLY SOMETHING IMPORTANT. AS SOMEBODY FROM FFA, IT'S A, IT'S A BIG DEAL. I TOO ATTENDED THE CSAC LEGISLATIVE CONFERENCE. I ALSO ATTENDED THE MEMORIAL DAY SERVICE AT THE CEMETERY ON MEMORIAL DAY. I ATTENDED A RIBBON-CUTTING FOR CALI RAY SOURDOUGH, ONLY TO, THEY, THEY WERE SUPPOSED TO BE AT AND I GOT THERE AT AND, AND THEY SAID WE STARTED EARLY.

SO I GAVE THEM THE CERTIFICATE, BUT I DIDN'T GET TO SEE THEM CUT THE RIBBON, BUT THAT'S ALL RIGHT. AND THEN YESTERDAY, I TOO WAS IN SACRAMENTO. I COULDN'T GO TO THE PORTUGUESE THING 'CAUSE THE HIGH-SPEED RAIL MEETING RAN A LITTLE LATE, BUT I DID GET UP AND SPEAK ON BEHALF OF SOME OF THE STUFF THAT THEY'RE DOING, ESPECIALLY AS IT RELATES TO THE BUSINESS PLAN. AND I'M JUST GONNA READ ONE OF MY COMMENTS. IT WAS, AS A LOCALLY ELECTED OFFICIAL IN MERCED COUNTY, I BELIEVE IT IS OUR RESPONSIBILITY TO ENSURE MERCED COUNTY HAS A SEAT AT THE TABLE AND THAT THE INTERESTS OF OUR RESIDENTS, BUSINESSES, AND COMMUNITIES ARE REPRESENTED THROUGHOUT THIS PROCESS. AND WE REMAIN COMMITTED TO ONGOING COOPERATION, COMMUNICATION WITH THE AUTHORITY AND OUR REGIONAL

[02:55:01]

AND IT WAS REALLY COOL BECAUSE IT WAS VERY MUCH A HIGHLIGHT OF MERCED COUNTY. THEY KEPT TALKING ABOUT MERCED COUNTY AND HOW IT HAS TO GET DONE IN MERCED COUNTY. AND I WAS ACTUALLY, ONE OF THE BOARD MEMBERS THANKED, HE SAID, "YOU'RE KIND OF TENACIOUS." SO IT WAS REALLY COOL TO BE THERE, TO SEE IT ALL PAY THROUGH. I KNOW IT'S CONTROVERSIAL, BUT I THINK IT'S IMPORTANT THAT AS IT MOVES FORWARD THAT WE ARE, HAVE A SEAT AT THE TABLE BECAUSE I THINK IT'S INCREDIBLY IMPORTANT.

THAT'S ALL I HAVE.

THANK YOU.

OKAY, THANK YOU. SUPERVISOR PACHECO.

THANK YOU, CHAIR.

I KIND OF HAVE BUSY COUPLE WEEKS. ON THE 19TH, I ATTENDED THE MERCED UNION HIGH SCHOOL DISTRICT SALUTE TO SERVICE LUNCHEON, BASICALLY CELEBRATING ALL THE STUDENTS THAT ARE GOING TO GO INTO MILITARY SERVICE. IT WAS REALLY GREAT TO SEE. THEY'RE VERY EXCITED ABOUT GOING AND ACTUALLY SAT AT TABLE WITH A COUPLE GOING TO THE NAVY IN CHICAGO. SO, BUT YES, EVERYBODY'S EXCITED, SO IT'S NICE CELEBRATION FOR THEM. THE 20TH, I ATTEND THE SAN YSIDRO CHAMBER OF COMMERCE LUNCHEON AND WAS ELECTED VICE CHAIR.

SO, BUT IT'S EXCITING TO GO OVER AND SEE WHAT MY SAN YSIDRO PART OF THE COUNTY IS DOING. I ALSO ATTENDED THE CSAC LEDGE CONFERENCE AND WAS BRIEFED ON THE IMPACTS OF HR 01, WHICH ARE DIRE.

ON THE 23RD, I ATTENDED LEGRAND COMMUNITY DAY. I WAS IN THE PARADE AND HAD A WONDERFUL DEEP PIT LUNCH AND CELEBRATED THE COMMUNITY OF LEGRAND. SO THAT WAS GREAT TO DO, AGAIN, WITH MY PARTNER, JOSH PEDROZO.

I ALSO MET WITH LIEUTENANT DANIELS ABOUT THE, AGAIN, CONCERNS THAT ARE GOING ON IN SANTA NELLA. HE WAS VERY RESPONSIVE AND IS GOING TO MAKE SURE THAT HE GETS SOME CARS OUT THERE. THE 27TH, I ATTENDED THE MERCED BOOSTERS. I WAS INVITED BY MR. LORENZI. IT WAS A GREAT EVENT, AND I DID A LOT OF NETWORKING THERE, SO I THANK HIM FOR THE INVITATION. AND ON THE 1ST, I ATTENDED THE SHERIFF'S OFFICE. THEY HAD AN OATH OF OFFICE FOR PROMOTIONS AND HIRES. IT WAS A REALLY BIG GROUP. THEY SWORE IN A CUSTODIAL DEPUTY, A DEPUTY CORONER, A DISPATCHER, PROMOTED 2 SERGEANTS, A LIEUTENANT, AND A CAPTAIN.

CAPTAIN.

SO I DID THERE. SO CONGRATULATIONS TO THAT GROUP OF INDIVIDUALS, AND I WISH THEM GOOD LUCK IN THEIR CAREERS. AND THEN JUST LASTLY, JUST WANT TO MENTION THE LEGRAND HIGH SCHOOL SOFTBALL TEAM LAST WEEK BECAME DIVISION 7 CHAMPIONS OVER ELLIOTT CHRISTIAN. THEY ACTUALLY MERCY RULED THEM. IT WAS 12-2. SO THEY'RE OUT OF THE STOCKTON, STOCKTON-LODI AREA. AND BECAUSE OF THAT, THEY WERE INVITED TO, LET'S SEE, PARTICIPATE IN THE DIVISION 5 NORTHERN REGION PLAYOFFS. AND THEY'RE THE NUMBER 2 SEED AND WILL HOST NUMBER 7 JUSTIN SIERRA BRAVES FROM NAPA THIS AFTERNOON AT .

I'M GOING TO GO WATCH THE GAME AND WISH THEM GOOD LUCK, AND HOPEFULLY THEY CAN BRING THE GRAND ANOTHER CHAMPIONSHIP.

AND WITH THAT, THAT'S ALL I HAVE.

THANK YOU, CHAIR.

ALL RIGHT, THANK YOU.

SUPERVISOR PEDROZO.

YES, ALL RIGHT. I FORGOT TO MENTION THAT I ATTENDED INTO THE GRAND COMMUNITY DAY PARADE IN SUPPORT OF MY COLLEAGUE. I THOUGHT IT WAS REALLY COOL. I ALSO WANTED TO CONGRATULATE IRVIN MENDOZA FOR THE SUCCESSFUL ART FLOP THAT THEY HAD IN DOWNTOWN MERCED. IT WAS, IT WAS PACKED. IT WAS REALLY, IT WAS A REALLY COOL THING TO SEE. AND THEN I ALSO WANTED TO MAKE MENTION THAT THE COOLING ZONES ARE NOW OPEN.

THEY OPENED YESTERDAY, BUT THEY'RE ALL PUBLIC PLACES, SO THEY'RE OPEN REGARDLESS.

AND THEN SPEAKING OF SOFTBALL, I'D BE REMISS IF I DIDN'T CONGRATULATE MY DAUGHTER LUCY AND HER TEAM TEAM FOR WINNING THE, MERCED YOUTH SOFTBALL CHAMPIONSHIP ON FRIDAY, AND THEN ALSO WINNING THE, SHE WAS CHOSEN TO BE AN ALL-STAR, AND THEY WON THE ALL-STAR GAME LAST NIGHT.

SO, CONGRATULATIONS TO HER AND HER TEAM.

THANK YOU.

[POSSIBLE DIRECTION FOR FUTURE AGENDA ITEMS]