It’s no secret that prescription drugs are unaffordable for many Californians. In just five years, spending on prescription drugs ballooned from $8.7 billion to $12.1 billion, an increase of 39%, according to the most recent state data.

Consumer advocates and health economists are placing some of the blame on pharmaceutical middlemen, which they say needlessly drive up costs by tacking on fees and withholding discounts as profit. It’s a problem that has plagued regulators across the country. This week, California lawmakers are set to vote on first-time regulations aimed at curtailing their tactics.

Pharmacy benefit managers, also known as PBMs, most often serve as intermediaries between insurance companies and drug manufacturers. They process claims, negotiate the price of drugs using a complex system of rebates, and control the list of drugs that health insurance plans cover, also known as a formulary.

They’re already regulated to some degree in most other states, including Texas and Florida. The California proposal would require the state insurance department to license pharmacy benefit managers, and would require pharmacy benefit managers to disclose prices paid and discounts negotiated with drug manufacturers. It would also mandate that 100% of the discounts from drug manufacturers be passed onto health insurance plans.

“(Pharmacy benefit managers) have insinuated themselves into the nerve center of the health system where they exercise enormous leverage over the health plans, over the pharmaceutical manufacturers, over the consumers,” bill author Sen. Scott Wiener said. “They’re making enormous amounts of money at the expense of consumers.”

The companies argue that they save money for patients and insurance plans — the more patients they represent, the more leverage pharmacy benefit managers have to negotiate lower drug prices, for example. They are fiercely opposed to the legislation and warn that the proposed regulations will increase health premiums for Californians by $1.7 billion in the first year and $20 billion over a decade.

“The bottom line is (Senate Bill) 966 does nothing to reduce prescription drug costs or improve patient access and safety,” said Greg Lopes, a spokesperson for Pharmaceutical Care Management Association, an industry lobby for pharmacy benefit managers

Three pharmacy benefit managers dominate the industry: CVS Caremark, Express Scripts and OptumRx represent more than 80% of the market.

Increasingly, research suggests consolidation drives prescription drug prices higher. The biggest player, CVS, has grown to encompass the familiar retail pharmacy stores, pharmacy benefit management services, and health insurance through a merger with Aetna.

“They’re way overdue for regulation,” Wiener, a Democrat from San Francisco, said.

Previous attempts to regulate pharmacy benefit managers have failed in California. In 2021, Gov. Gavin Newsom vetoed legislation that would have prevented pharmacy benefit managers from “patient steering,” a practice that forces patients to use only specified pharmacies that are also often owned by the pharmacy benefit managers.

“In California we’re really behind. They have been far more aggressive in other states regulating (pharmacy benefit managers),” said Michelle Rivas, executive vice president of government relations at the California Pharmacists Association, which co-sponsored the bill. “The ideal would be comprehensive federal legislation. Unfortunately, we don’t have the luxury of time to wait for Congress to move on this issue.”

While more than a dozen proposals have been introduced in Congress, to date none has passed. A recent report from the Federal Trade Commission, which is investigating pharmacy benefit managers, suggests that the largest organizations may be engaging in practices specifically to evade regulation, such as moving portions of their operations out of the country.

“These guys are smart and historically we’ve seen them evolve and we’ve seen them find ways to make more money,” said Geoffrey Joyce, director of health policy at the USC Schaeffer Center who studies pharmaceutical markets.

California’s effort to regulate pharmacy benefit managers is commendable, Joyce said, but he’s pessimistic that regulators can adapt as quickly as the market changes.

Concessions to pharmacy benefit managers

Wiener’s bill would break new ground in California, but it won’t go as far as he intended.

Amendments to the proposal significantly curtailed its reach in the final days of the legislative session. Industry groups requested the changes, but Wiener said the remainder still leaves “a very strong bill.”

Previous versions of the proposal would have prohibited pharmacy benefit managers from paying pharmacies less for a drug than they charge insurers and keeping the difference as profit. It would have also prohibited insurers from paying out bonuses based on drug cost savings.

The Assembly Appropriations Committee, which is chaired by Buffy Wicks, a Democrat from Oakland, struck those provisions.

Wiener said neither he nor the industry opponents got everything they wanted. Wicks’ office did not respond by deadline to a call asking why the amendments were added when the bill had previously made it through all committees and the Senate without a single no vote.

Lopes, with the pharmacy benefit manager lobby, said the group remains opposed to the bill even after the amendments.

“While we are taking a close look at the new language and its implications, it’s evident the bill still benefits Big Pharma at the expense of California patients,” Lopes said.

Pharmacy benefit managers argue that federal investigations and criticism of their business practices are flawed and misguided. As middlemen, pharmacy benefit managers are able to negotiate prices with pharmacy chains, health insurers and drug manufacturers on behalf of their clients. Designing preferred pharmacy networks, formularies and discounts are all strategies that allow pharmacy benefit managers to keep prices reasonable, said Ed Devaney, president of the employer division at CVS Caremark.

“This bill would not allow employers to continue to leverage those cost containment solutions that they have enjoyed over the last 10 to 20 years,” Devaney said. The proposal is also opposed by health insurers, some unions, and a coalition of business associations.

CVS Caremark is the largest pharmacy benefit manager in the country, representing more than 100 million members. Devaney said CVS passes 99% of rebates to consumers and that it has no issue with increased transparency.

Instead, the benefit managers blame pharmaceutical companies for skyrocketing drug prices.

‘No saints’ in pharmaceutical industry

Reid Porter, a spokesperson for Pharmaceutical Research and Manufacturers of America, said Wiener’s proposal is a “step in the right direction” but that California legislators have more work to do to address “the perverse incentives and harmful practices of PBMs that lead to higher costs, including higher premiums, that patients face.” The trade organization representing drug companies supports Wiener’s measure.

Drug manufacturers have long accused pharmacy benefit managers of holding prescription drugs hostage in order to get bigger rebates that patients never see. Rebates made up just 17% of the $12.1 billion spent on pharmaceuticals in 2022, according to the Department of Managed Health Care’s most recent drug cost report.

Joyce of USC said both players are at fault.

“There are no saints. Everyone is trying to make a buck,” Joyce said.

Pharmacy benefit managers representing tens of millions of patients have enough leverage to negotiate lower drug prices, he said, but the problem is that their business practices are so opaque no one really knows how much in savings is being passed down to patients and how much benefit managers are keeping in profits.

Joyce said he has also witnessed negotiations where manufacturers withhold price discounts if the benefit manager includes coverage of competitors’ drugs.

“They run an opaque, non-transparent business, and that is never good,” Joyce said.

The Federal Trade Commission report suggests that pharmacy benefit managers increasingly make money through administrative fees and other payments tacked onto services.

Despite the leverage pharmacy benefit managers may have, Kevin Schulman, a professor of medicine at Stanford University, research shows they have only ever driven drug prices up — not down.

For example, although generic or biosimilar insulins have been available for years, patient use of the cheaper alternatives has remained low because pharmacy benefit managers exclude the generics from covered benefits in lieu of higher-profit, name-brand insulins. Newsom’s initiative to manufacture low-cost, generic insulin for Californians, will face a similar challenge, Schulman said. Schulman was an advisor to Civica Rx, the company tapped by Newsom to run its insulin project.

“This strategy results in them being able to pocket billions of dollars,” Schulman said.

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Supported by the California Health Care Foundation (CHCF), which works to ensure that people have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.

CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

Jimmy John Shea was born on November 4, 1956 in Clay Center, Kansas, and raised in Salina, the oldest of five siblings. He is survived by his sisters Sara Rogers (Clarendon, Arkansas), Laurie Ross (Tulsa, Oklahoma), Beckie Shea (Sand Springs, Oklahoma), brothers Dave Shea (Tulsa, Oklahoma), and Scott Shea (Valdosta, Georgia); as well as Melissa Stansberry, the mother of his son Frankie, and step-sons and daughter Kavi, Olea and Galen Treesong. He is predeceased by his birth mother, Mary Smith of Arkansas, and parents Dean Shea and Sue Woodring of Tulsa, and by his only child, Franklyn Stansberry-Shea.

In his early years, Jimmy was a track and cross- country star and academic genius in high school, graduating in 1975 from Salina High School South. He earned the prestigious USSYP award (United States Senate Youth Program), and a scholarship to West Point Military School, which he turned down, and instead, chose to hitchhike to California and live in the mountains. There, he took the name “Winter Breeze” and family and friends thereafter knew him as Breeze.

In California he spent several years planting trees in the Sierra Foothills, where he made new friends and met the people who would become his land partners in Weitchpec. In between planting trees, he would take pick and shovel to little known crystal mines in eastern California and Nevada, returning with collections of exquisite quartz crystals which he surrounded himself with for the rest of his life. 

In 1993, at the age of 37, Breeze became a father to Franklyn Allessandro Stansberry-Shea, and he and Melissa Stansberry and their boy lived together for a time in the tipi Jimmy had made, on the side of the mountain. Though mother and child moved to Carlotta, he and Melissa continued to share the bond of parenthood forever, deeper following the untimely passing of their child in 2018. Jimmy spent the last 36 years of his life on his homestead, right above the confluence of the Klamath and Trinity rivers, maintaining a beautiful home surrounded by abundant gardens and orchards. He had lots of friends and acquaintances weaving in and out of the story of his earthly life.  

He was always a hardworking man, if not on his homestead, then assorted jobs on local farms and forests, wielding a hoe, chain saw, or weed whacker depending on the job.  He loved working the soil, raising animals, and sharing the bounty of his gardens both fresh and preserved.  He often contributed food to Hoopa Tribal Elders. In the early days he also volunteered at KIDE Radio in Hoopa. Breeze was a gentle and generous soul.

Liberated from the trappings and sufferings of mortal flesh, no longer tortured by pain and grief, Breeze was ready. With his recently recognized acceptance of his Lord, he was ready and he said so repeatedly since the untimely passing of his only child Frankie Stansberry-Shea.  In recent years he often said “My faith is strong in my Lord.  I am both a Christian and a Pagan.”

Breeze joined his son in spirit mere days before the 6th anniversary of his son’s transition to Spirit; his “Angelversary.”

Rest peacefully in God’s garden, Breeze, with Frankie and all your elders.  We’ll be seeing ya on the Other Side.

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Jerry Ann Hurst
April 21,1956- August 11, 2024

Jerry was born at Scotia Hospital April 21,1956 to Wallace and Iris Reid. She grew up in Ferndale and surrounding areas attending Ferndale Elementary/High school and graduated in 1974. She enjoyed being with family and her many friends having a great time. Jerry worked at Bailey Suit, Crown Redwood, Harris of Pendleton, cleaning houses, and retired from Greens Pharmacy. She met the love of her life Mike and they married April 17, 1985.

They enjoyed camping, hunting, going to Fort Bragg diving for Abalone, and to the Red Bluff Rodeo. In 1987 they welcomed their son Dustin and enjoyed watching him play in many sports. Jerry was a diehard 49ers fan and went to many games at Candlestick Park. When she couldn’t attend any more live games you could hear her yelling at her television when they played. Jerry enjoyed spending precious time with her grandchildren who were light of her life.

She will be greatly missed by her son Dustin and Stacey Hurst and their children Raylan, Reese and Raegan. Son Christopher Crowl, Stepson Jack and Shawna Hurst and their children Cody and Katie. Her sisters Darlene Flowers, Becky Cardoza, and brother Donald Reid. Also her best friends Joyce and Randy Bolan, dear friends Dave Parker, JP Ballard, Terry Edgmon, Randy Church, her beloved cats Bootsie and Sissy, and numerous other relatives.

She was preceded in death by her mom Iris Reid, father Wallace Reid, brothers Wallace Jr, Ronald, and Robert Reid. Her husband Michael Hurst, stepson John Hurst, brother in law Dale Flowers and numerous other relatives.

Per Jerry’s request no services will be held, although at a later date a celebration of life will be held in her honor.

Carolyn Marie Jackson
April 8, 1940 – August 18, 2024

Carolyn Marie Jackson, born on April 8, 1940, at 3:16 p.m. at Storks Nest Maternity Hospital in Inglewood, California, passed away peacefully on August 18, 2024, after a courageous battle with COPD and cancer. She was a beloved mother, grandmother, great-grandmother and cherished friend, known for her fierce spirit, resilience and beauty.

Carolyn was the daughter of Jesse (Thelma) Crow/Jackson and Lenard Warren Jackson and sister of Carl Jackson. She spent her early years in Bremerton, Washington, and completed her childhood in Cutten. Throughout her life, Carolyn embraced her passions and interests with enthusiasm. She was a talented painter, a devoted lover of her cats, her lifetime career was a weighmaster for Baysalt and Syre industries in Santa Rosa CA — a profession she approached with dedication and skill. After retirement in 2010 Carolyn and her daughter opened Humboldt Check Cashing.

She is survived by her loving children, Kurt Westman and Cheryl Martins; her grandchildren, Aric, Jeremy, Shannon, Robert, and Lateese; and her great-grandchildren, Aviance, David, Analisa, Madison, Jaxon, Akirah and Kinsley. Carolyn was preceded in death by her parents Thelma and Leonard and her brother Carl.

Carolyn’s legacy is one of strength and grace. Her memory will be cherished by all who knew her. She is now at peace, reunited with her parents, brother and beloved cat Prince, in the eternal embrace of heaven.

A memorial service to honor Carolyn’s life will be held on Sept. 8, 2024 at 1 p.m. at the Moose Lodge 4328 Campton Rd Eureka, Ca 95503. Food will be provided.

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PREVIOUSLY: Sheriff’s Office in Line to Get a Six-Figure Grant From an Org Led By … the Sheriff?

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The Humboldt County Board of Supervisors had a lot of questions this morning for Sheriff William F. Honsal, but ultimately, with a 4-1 vote, they approved his office’s request to accept a $334,615 grant and create two new staff positions as part of an ongoing regional campaign to combat human trafficking.

As noted in a post from yesterday, the grant is being bestowed upon our fair county by a nonprofit organization called The Northern California Coalition to Safeguard Communities (NCCSC), whose president is none other than Honsal himself. (On Aug. 1 he wrote a letter of congratulations to his own office, reporting that its request for funding had been approved.)

The coalition (comprising Humboldt, Mendocino, Lake, Trinity and Siskiyou counties) receives 100 percent of its funding from the Howard G. Buffet Foundation by way of another nonprofit, The Center to Combat Human Trafficking, which, in turn, is financed by billionaire investor Warren Buffett (Howard’s dad).

The grant was originally placed on last week’s consent calendar, where it could have been approved as part of a list of items without any specific discussion or deliberations, but Fourth District Supervisor Natalie Arroyo asked for it to be pulled. Since Honsal was unavailable to appear in person last week, the discussion took place today.

In an informational report to the board, Honsal offered context for the region’s human trafficking problems, explaining that black market weed farmers often haul migrant laborers en masse to work their grow operations. The drastic collapse in weed prices has made the industry look more like other agriculture in California, with cultivators trucking people in to tend their gardens.

“And oftentimes,” Honsal said, “these are people that are non-documented … people from foreign nations that are coming in and that are working these farms.”

In other words, they’re being trafficked. 

“We believe that they are victims of crime,” Honsal said.

The NCCSC was formed in 2022, and the coalition has allowed the participating law enforcement agencies to hire evidence technicians and civilians who can interview suspected trafficking victims that might be scared to talk to cops. This year, Honsal requested a full-time public information officer and a full-time program coordinator to assist the coalition.

The grant will also pay for training and equipment, a human trafficking PR campaign and computer software from Israeli mobile forensics company Cellebrite, whose cellphone-cracking technology has attracted controversy over human rights and privacy issues.

Honsal said his office already uses Cellebrite software, as do other agencies in the county and state. “It’s a forensic tool … ,” he said. “We can seize phones on scene that we believe are associated with criminal activity and then bring those back to our to our department … and extract the software out of them.”

But he assured supervisors that his office takes care not to violate anyone’s Fourth Amendment rights protecting them from unreasonable searches and seizures.

“We don’t act without a search warrant or consent or someone who’s on probation,” he said. 

“We can’t use the Cellebrite [software] we already have for this?” First District Supervisor Rex Bohn asked. 

Honsal explained that the newly requested software would allow his department to take this phone-cracking tech out into the field, potentially assisting investigations that stem from search warrants issued in other participating counties.

Second District Supervisor Michelle Bushnell asked what will happen once this grant runs out. Honsal said that the grantee has guaranteed five years of funding, with just two in the books. “So these positions are guaranteed for the next three years,” he said, adding that he hopes to show results that will convince the funders to pony up for two decades or more.

Arroyo voiced concern about adding temporary grant-funded positions to the county payroll during the current hiring freeze. “I would prefer to see those positions filled within the nonprofit structure,” she said.

Third District Supervisor Mike Wilson agreed, noting that while these positions may be grant-funded for the next three years, that won’t cover all the county’s costs. “[W]e do take on a retirement burden that’s ongoing,” along with contractual obligations for layoffs, he said.

Honsal said this type of arrangement is not uncommon and argued that since the program coordinator will be working in a law enforcement capacity, dealing with sensitive and confidential information, they must be employed by his office.

“There’s no other way that we’re going to do this, and there’s no other way that we can do this within our county with our current budget,” Honsal said.

Wilson had a lot of other concerns, including protecting immigrant victims of human trafficking from deportation and convincing other counties in our region to embrace the legal marketplace rather than continuing a prohibition model that jacks up black market profits. 

Honsal assured him that the coalition isn’t focused on illegal immigration, and he said the cultivators they go after aren’t interested in joining the legal marketplace.

“These people are straight criminals that are growing out there,” he said. “You ask anyone that’s in the business: It is more profitable to be illegal, okay? It is way more profitable to be illegal. And so people are choosing that path because they want profits, and they’ll take the risk.”

Wilson said that was his point, but he didn’t press the issue. 

Bohn kept his inquiry brief. He said this coalition serves as a tool to help protect Humboldt County’s legal market, so regarding this latest request, “Is it going to help?”

“Yes, it will,” Honsal replied.

“You got my answer,” Bohn said.

Arroyo explained that she would be voting “no” due to her procedural concerns about adding staff positions at this point in the budget cycle. The rest of the board voted in favor, thereby approving the item.

In an emailed response to questions from the Outpost, Honsal explained that the Howard G. Buffet Foundation is responsible for reviewing grant proposal applications and awarding funds, adding that all five participating counties in the coalition were polled to determine their needs.

The NCCSC’s board of directors — which is made up of the sheriffs from each participating county, with Humboldt County DA Stacey Eads nominated to join them — voted Honsal in as president, he said.

In 2021, the Center to Combat Human Trafficking donated a pickup truck to each of five Northern California counties “as part of a collective effort to combat human trafficking in the Northern California region,” as the staff report put it at the time.

We asked Honsal to respond to an anonymous tip we received alleging that he has been driving the truck donated to Humboldt — a Ford F250 4x4 crew cab valued at $51,454, plus around $20,000 in aftermarket upgrades — as his commuter vehicle.

“I currently drive the truck as my Sheriff Assigned Vehicle,” he replied. “The Truck is not my personal vehicle. I only use it for business associated with being Sheriff.  It has a radio, emergency lights, siren and specialized equipment. It replaced another Government vehicle I was driving.”

State claws back cannabis grant money

Coming back after a closed session hearing and a lunch break, Planning and Building Director John Ford gave the board some bad news: Thanks to a recent audit of the California Department of Cannabis Control (DCC), Humboldt County will have to return somewhere between $3 million and $5 million in grant money to the state.

Sounding deeply annoyed, Ford explained how we got here. Back in 2021, the state allocated $90 million to help cannabis farmers transition from provisional to annual licenses. Humboldt County’s portion, based on the number of license holders and equity applicants, was $18.6 million.

Ford’s department proposed using that money to address impacts related to the California Environmental Quality Act (CEQA), specifically water and energy usage, in part by allocating $3.5 million to conduct watershed studies.

“This was discussed up front with the DCC, and the county was encouraged to proceed,” Ford said. “The grant agreement with the DCC was clear that this money would be allocated to both provisional license holders and annual license holders.”

However, a state audit of the DCC’s program found that the agency was allocating funds in a way that was inconsistent with the original purpose of the $90 million investment — namely, moving growers from provisional to annual status. During the state’s 20-month audit, Humboldt County was ordered to stop allocating money. 

A state auditor spent a week here in Humboldt’s Planning and Building Department, “going through every single grantee, through every permit,” Ford said. “A significant amount of county staff time was expended explaining the rationale for the way the county program was structured, and the county provided many examples of permit conditions that required water storage and required applicants to move away from generators.”

But Ford said the explanations seemed to fall on deaf ears, and as a result of the audit the DCC was required to change its agreement with the county to specify that money could only be granted to people with provisional licenses.

“The net result is that the county will not … be able to spend all the money that was allocated, because we do not have that many provisional license holders,” Ford said, later adding, “I know this is not great news, but it is what it is.”

The board members expressed disappointment.

“I think it’s really unfortunate that the DCC chose to do this,” Fifth District Supervisor Steve Madrone said. He noted that it’s always been his philosophy to reward the people who’ve succeeded in acquiring their annual licenses, but that now won’t be possible with these funds.

Arroyo and Wilson Madrone asked if there were other ways to spend the money, rather than returning it — perhaps by hiring consultants, creating guidance documents or allocating funds to the Sanctuary Forest.

Ford said there’s no such wiggle room in how to spend the money. He and his staff “thought we were being maybe a little bit creative, but really appropriate” in directing funds toward addressing cumulative environmental impacts, without strictly delineating between provisional and annual license holders.

“I want to be kind with my words, but trying to explain that to an auditor is impossible,” Ford lamented. The $3.5 million allocated for watershed studies was also deemed ineligible. 

The board asked about the potential for using the remaining funds to support storage and forbearance projects, which have been a focus of organizations such as Sanctuary Forest and the Salmonid Restoration Federation. But Ford again reiterated the constraints of the grant agreement.

Responding to suggestions from Madrone to advocate for the efficacy of supporting annual license holders, Ford said, “It’s been a painful amount of time that we’ve spent on this, supervisor. It really has.”

Odds and ends

• Bohn read a lengthy resolution recognizing the work of the Child Welfare Services Division of the Department of Health & Human Services. Bohn lauded them for operating 24/7 without fanfare, and for submitting timely court reports, among other work. The board and a number of public speakers also thanked CWS workers for their dedication. “We see you, we love you, and we thank you for all your hard work,” Madrone said.
• The board unanimously appointed Whitethorn resident Jeff Hildreth to the Shelter Cove Resort Improvement District.
• The board read retirement resolutions for both Mark Lamers, who spent 16 years with the Department of Health & Human Services, and Delia Garcia, for her “22 years of exemplary service to the county and the Humboldt County Sheriff’s Office.”
• Also, the board honored the retirement of someone who never worked a day for county government: former Coast Central Credit Union President and CEO Jim Sessa. The organization’s CFO and incoming president, Fred Moore, offered a few words of commendation for Sessa’s legacy.

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Nearly a month has passed since the Board of Trustees of Eureka City Schools backed out of a controversial land exchange agreement with AMG Communities - Jacobs, LLC, the anonymous private developer who had promised nearly $6 million for the Jacobs Campus. At this week’s meeting, the Board of Trustees will discuss the next steps for the long-blighted site.

If you aren’t familiar with the Jacobs Campus saga, here’s a quick recap: Last December, the Board of Trustees unanimously voted to swap 8.3 acres of the former Jacobs Middle School campus to a secretive corporation, known only as “AMG Communities-Jacobs, LLC,” for a small home on ⅛ acre lot, plus $5.35 million in cash. 

The controversial decision has drawn criticism from residents of Eureka’s Highland Park neighborhood, the South Eureka Neighborhood Alliance, the Eureka City Council, the League of Women Voters of Humboldt County and the Humboldt County Civil Grand Jury, which felt the “secretive” board “acted hastily and without sufficient due diligence.”

In the eight months since the deal was struck, AMG Communities asked to extend the close of escrow on four occasions. At the Board of Trustees’ most recent meeting on Aug. 8, the board voted unanimously to reject AMG Communites’ fourth request to extend the deadline to a date uncertain in November, after Eureka voters determine the fate of the Measure F, the Housing for All and Downtown Vitality Initiative.

AMG Communities issued a statement the day after the board’s decision announcing that it – not the school district – had made the decision to withdraw from the agreement. AMG Communities said it would “wait until the passage of Measure F … to reconsider purchasing the property if it is still available.”

Assistant Superintendent Paul Ziegler will present the Board of Trustees with five options for the Jacobs Campus at Thursday’s meeting:

1. Retain the property. Under this option, the board could choose to maintain the property in its current condition or make improvements to the athletic fields on the north side of the site. This option would allow the board to resume the surplus process “at any time.”
2. Continue property negotiations with the state Department of General Services, the entity representing the California Highway Patrol, which has expressed “ongoing interest” in purchasing the site. For years, CHP has eyed the Jacobs Campus as a potential location for its new headquarters. CHP was in active negotiations with the school district up until the board struck a deal with AMC Communities in December 2023.
3. Sell or lease the property to someone else. This option would require the board to notify the public before opening a competitive bidding process. Under this alternative, the board could seek a waiver from the State Board of Education that would allow the school district to accept proposals from public and private entities. In that case, the district would not be required to sale or lease the property to the highest bidder.
4. Develop the site with workforce housing. This option would be an “extensive process” and likely a long-term commitment for the school district.
5. Explore other “creative” solutions. This option includes links to sections of state code for Real Property Exchange (exchanging the property for “real property” of another person or private business), Joint Occupancy (allowing another person or entity to use the site) and a Public-Private Partnership (using private sector funds to help maintain the site).

A copy of the presentation can be found at this link.

Earlier in the meeting, during closed session, the board will discuss ongoing negotiations with the California Highway Patrol. So that deal is not dead.

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The Board of Trustees will also respond to the Humboldt County Civil Grand Jury’s report, “Eureka City Schools — Board of Trustees: Deal or No Deal,” which, as stated above, criticized the board’s handling of the land swap. 

The Board of Trustees of Eureka City Schools will meet Thursday, Aug. 29 at 6:30 p.m. in the district office – 2100 J Street in Eureka. The agenda can be found at this link.

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PREVIOUSLY:

• Who Will Get the Former Jacobs Campus? Bidders for Blighted Site in Highland Park Are the City of Eureka and the California Highway Patrol, With a Decision Coming Soon
• The CHP Would Like to Build New Headquarters on the Property Championed by People Opposing Downtown Housing Development, and There Was a Meeting About it Yesterday
• Open Letter Urging Eureka Voters Not to Sign the ‘Housing For All’ Petition Endorsed by 100+ Humboldt County Residents, Including Local Leaders in Politics, Business and Culture
• New Coalition — ‘I Like Eureka Housing!’ — Formed to Oppose Arkley-Backed Pro-Parking Lot Initiative
• Mystery Item on Tonight’s Eureka City School Agenda Suggests Imminent Action on Jacobs Campus, but the School District Won’t Share Details
• Eureka City Schools Board of Trustees Unanimously Votes for So-Called ‘Land Exchange’ With Mystery Developer
• The Eureka City Schools Board Voted on a Resolution Last Week That Was Not Published Before the Meeting. Is That Legal?
• At Town Hall Meeting, Frustrated Residents Discuss Future Development of Eureka’s Jacobs Campus; Mystery Developer Still Mysterious
• Security National Has Spent at Least $236,000 on the Pro-Parking ‘Housing for All’ Initiative So Far
• Grand Jury Slams Eureka City Schools For ‘Secretive’ Jacobs Campus Deal
• League of Women Voters Chimes in on Lack of Transparency in Eureka City Schools Property Transfer
• Rob Arkley Pursued Purchase of Jacobs Middle School Property Before Eureka City Schools Entered Land-Swap Deal With Secretive Corporation
• Eureka City Schools and AMG Communities Delay the Close of Escrow on Jacobs Campus Yet Again
• Eureka City Schools’ Deal With a Mystery Developer For the Jacobs Campus is Dead
• Anonymous AMG Communities Confirms Death of Jacobs Campus Deal, Vows to Try Again After Election Results

Press release from the Humboldt County Drug Task Force:

Steele.

On August 26, 2024, Agents with the Humboldt County Drug Task Force served a search warrant on Richard James Steele (age 38), and his residence located in 2100 block of McKinleyville Ave. in McKinleyville. During the months of July and August, the HCDTF received information that Steele was using controlled substances, and he was in possession of several assault weapons. Steele is a convicted felon and is prohibited from possessing firearms and ammunition.

Upon HCDTF’s arrival at Steele’s residence, he was detained in the driveway without incident. During the search of Steele’s residence, Agents located approximately 3 grams of methamphetamine and drug paraphernalia. During the course of the investigation, Steele informed Agents that he had a storage unit located in the 2300 block of Central Ave. in McKinleyville. Steele advised Agents that he had several firearms inside of the storage unit. Steele signed a consent to search form for the storage unit and Agents responded to the storage facility.

Upon accessing the storage unit, Agents located a non-serialized AR-15 short-barreled rifle (SBR), an AK-47 assault rifle, a Kriss Vector .45 caliber firearm, a non-serialized 40 caliber handgun with a threaded barrel, level 4 body armor, and ammunition.

At the conclusion of the search warrant, Steele was transported to the Humboldt County Correctional Facility and booked on the following charges:

• 29800(a)(1): PC Felon in possession of a firearm
• 33215 PC: Possession of sawed-off shotgun/short-barreled rifle
• 30605 PC: Possession of an assault weapon
• 24610 PC: Possession of an undetectable firearm
• 31360(b)(1): Felon in possession of body armor
• 11377(a) HS: Possession of a controlled substance
• 11364(a) HS: Possession of drug paraphernalia

Anyone with information related to this investigation or other narcotics related crimes are encouraged to call the Humboldt County Drug Task Force at 707-267-9976.