Costa Mesa City Council
May 5, 2026

STEPHOUSE RECOVERY

POLICIES AND PROCEDURES

OCHCA RECOVERY RESIDENCE SERVICES
ATTACHMENT 6
-87-
294

TABLE OF CONTENTS

NONDISCRIMINATION 4
PHILOSOPHY STATEMENT 4
FISCAL PRACTICES 4
SHARING INFORMATION WITH STAFF AND CLIENTS 5
Procedure for Notifying Program Staff and Clients of P&P Updates 5 GRIEVANCE AND COMPLAINT PROCESS & POLICY 5
SPECIAL INCIDENT REPORTING AND NOTIFICATION OF DEATH 7
EMERGENCY RESPONSE PLAN 8
FACILITY REQUIREMENTS 8
MANDATORY POSTINGS FOR HOUSES 9
HOUSE LOG POLICY 9
COVID-19 CORONAVIRUS POLICY 9
STAFF REQUIREMENTS FOR EMPLOYMENT 11
EMPLOYEE FILE POLICY 12
OCHCA COMPLIANCE PROGRAM ACKNOWLEDGEMENT 13
LITERATURE, ADVERTISEMENTS, AND SOCIAL MEDIA COMPLIANCE 13 NO PROSELYTIZING POLICY 13
CODE OF CONDUCT 14
DUTIES of DIRECTOR and HEAD of ADMINISTRATIVE STAFF 15
EMPLOYMENT EQUAL OPPORTUNITY COMPLIANCE 15
ANTI-HARASSMENT POLICY & COMPLAINT PROCEDURE 16
STAFF DRUG TEST POLICY 18
STAFF DISCHARGE PROCEDURE 18
DRUG-FREE WORKPLACE POLICY 18
INSPECTIONS AND AUDITS 19
REPORTING AND BILLING POLICY AND PROCEDURE 20
COMPLIANCE 20
GENERAL AND SPECIALIZED PROVIDER COMPLIANCE TRAINING 20

MEDICAL BILLING, CODING, AND

DOCUMENTATION COMPLIANCE STANDARDS

21 INSURANCE STANDARDS 21
RECORDS POLICY & PROCEDURES 23
RECORDS MANAGEMENT AND MAINTENANCE 23
HIPAA PRIVACY AND SECURITY/NOTICE OF PRIVACY PRACTICES 25 BREACH POLICY 26
INTAKE POLICY AND PROCEDURE 27
OUTPATIENT PARTICIPATION POLICY 28
OUTPATIENT TREATMENT PARTICIPATION COLLECTION 28
TRACKING PROCEDURE 28
CLIENT RELAPSE POLICY 29
DISCHARGE PROCEDURES FOR STAFF 29
RECORDS RETENTION POLICY 30
DENIED ADMISSION POLICY 31
ALTERNATIVE REFERRAL POLICY 31
CLIENT ELIGIBILITY 31
-88-
295

CLIENT REQUIREMENTS 31
STEPHOUSE RECOVERY’S POLICIES AND PROCEDURES
The following policies and procedures are shared with the client at intake

AUTHORITY POLICY 32
CLEANING POLICY 32
CLIENT CONFIDENTIALITY POLICY 32
CLIENT SIGN-IN/OUT POLICY – CLIENT SCHEDULES 33
OUTPATIENT PARTICIPATION POLICY 33
CURFEW/OVERNIGHT POLICY 33
DISCHARGE/TERMINATION POLICY 34
DISCRETION POLICY 35
DRUG/ALCOHOL POLICY 35
SUPPORT STAFF 35
EMPLOYMENT/SCHOOL/VOLUNTEERING POLICY 35
GOOD NEIGHBOR POLICY 36
HOUSE RULES POLICY 37
MAIL AND PACKAGE DELIVERY POLICY 38
MEALS/FOOD POLICY 38
MOTOR VEHICLE (INCL. MOTORCYCLE) POLICY 39
NONDISCRIMINATION POLICY 39
OPIOID OVERDOSE EMERGENCY TREATMENT POLICY 39
PROPERTY DAMAGE POLICY 39
DRUG & ALCOHOL SCREENING POLICY 40
SMOKING POLICY 40
TRANSGENDER & GENDER IDENTITY POLICY 40
GENDER-ORIENTED FACILITY POLICY 41
TRANSPORTATION POLICY 41
VISITATION POLICY 41
NO RESPONSIBILITY CLAUSE 41
ADDENDUM A 42
-89-
296

NONDISCRIMINATION
It is the policy of Stephouse Recovery not to discriminate in employment practices and provision of benefits and services on the basis of race, color, national origin, religion, sex, or mental or physical disabilities, pursuant to Title VI of the Civil Rights Act of 1964 (Section 2000d, Title 42, United States Code), the Rehabilitation Act of 1973 (Section 794, Title 29, United States Code); the Americans with Disabilities Act of 1990 (Section 12132, Title 42, United States Code); Section 11135 of the California Government Code; and Chapter 6 (commencing with Section 10800), Division 4, Title 9 of the California Code of Regulations.

MISSION STATEMENT
Our mission at Stephouse Recovery is to provide comprehensive, integrated mental health, substance abuse, and behavioral modification services that promote the health and well-being of our clients to improve their quality of life.

PHILOSOPHY STATEMENT
Our goal is to individualize behavior plans and recovery-based treatment plans to assist our clients in achieving their desired goals in sobriety and everyday life. Here at Stephouse Recovery, we strive to create a positive environment that encourages optimism and instills a comfortable feeling where clients can allow themselves a platform to open up to alternative health choices in their recovery.

Our methods are proven effective because we use evidence-based practices. We have a state-of-the- art structured environment that is fully staffed with qualified personnel who offer guidance, consistency, and support. We encourage our clients to hold themselves to a higher standard and take accountability for their actions while promoting self-confidence and self-reflection on their journey towards sobriety and a productive way of life. Our hope is to teach each client how to break their substance abuse cycle so they can make a conscious choice to walk a different path and lead a more productive, healthy lifestyle.

FISCAL PRACTICES
Stephouse Recovery implements standard cash basis accounting and bookkeeping practices. Expenses and revenue are recorded on a weekly basis by a contracted bookkeeper. Stephouse Recovery’s CPA office typically handles journal entries. All bookkeeping is reviewed quarterly by the CPA office.

Receipts and/or invoices are required to be attached to all expenses. Only Stephouse Recovery Owner has the authority to sign checks and make bank deposits. The bookkeeper reconciles accounts at the first of every month for the previous month’s activity. Bank statements are reviewed monthly by Stephouse Owner.

The organization’s quarterly financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) by the Stephouse Recovery CPA office.

The bookkeeper handles employee payroll bi-weekly and ensures that all payroll taxes and forms are paid and filed in a timely manner. The CPA and Stephouse House Recovery Owner oversee all other taxes and related forms for the organization. Timesheets are to be signed and turned in to Stephouse Recovery Owner for review on the Monday preceding the scheduled payday. The bookkeeper receives the approved timesheets from the Stephouse Recovery Owner or his assigned delegate only and then makes any changes to the payroll system.

Stephouse Recovery Compliance Officer oversees the completion of the Orange County Annual Cost Report for reporting on the use of county funds.

Financial records are stored in the QuickBooks Online system and the organization’s Google Shared Drive Banking folder. Records are kept indefinitely.

Petty Cash is not utilized in the RRS Program.

-90-
297

SHARING INFORMATION WITH STAFF AND CLIENTS
Stephouse Recovery's policy is to keep all staff and residents informed and updated on all personnel policies. Staff are emailed when policies and procedures are revised or added to. At house meetings, residents are notified and provided copies of policy and procedure changes.

Procedure for Notifying Program Staff and Clients of P&P Updates

Policies and Procedures are reviewed annually for necessary updates and revisions. Program staff and clients will be informed of any updates during staff meetings and house meetings immediately following the updates. Copies of the updates will be distributed with a memo outlining the changes that have been made. Staff and clients will be required to sign a group acknowledgement form indicating they received the memo and a copy of the new policy/procedure.

GRIEVANCE AND COMPLAINT PROCESS & POLICY
Stephouse Recovery's policy is not to discriminate based on race, color, national origin, sex, age, or disability. Stephouse Recovery has adopted an internal grievance procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by Section 1557 of the Affordable Care Act (42 U.S.C. Section 18116) and its implementing regulations at 45 C.F.R. pt. 92, issued by the U.S. Department of Health and Human Services. Section 1557 prohibits discrimination based on race, color, national origin, sex, age, or disability in certain health programs and activities.

Section 1557 and its implementing regulations may be examined in the Office of Compliance, who has been designated to coordinate the efforts of HCA's compliance with Section 1557.

Any person who believes they have or someone else has been subjected to discrimination on the basis of race, color, national origin, sex, age, or disability may file a grievance under this procedure. It is against the law for Stephouse Recovery to retaliate against anyone who opposes discrimination, files a grievance, or participates in the investigation of a grievance.

This policy applies to individuals (i.e., clients/patients) participating in healthcare programs or activities within Stephouse Recovery. All Stephouse Recovery employees who receive or respond to grievance calls must incorporate the procedures indicated within this policy into current Service Area grievance response procedures.

Grievances must be submitted to the Office of Compliance Civil Rights Coordinator within sixty (GO) days of the date the person filing the grievance becomes aware of the alleged discriminatory action.

A complaint must be in writing and contain (1) the name and address of the person filing the complaint, (2) the problem or action alleged to be discriminatory, and (3) the remedy or relief sought.

1. Office of Compliance CIVIL RIGHTS COORDINATOR Grievance Procedures a. The Office of Compliance Civil Rights Coordinator (or her/his designee) tracks all complaints/grievances related to race, color , national origin, sex, age, or disability on an internal tracking log.
b. The Office of Compliance Civil Rights Coordinator (or her/his designee) notifies the respective Service Area Grievance Representative of Section 1557 complaints and conducts investigations of complaints. This investigation may be informal, but it will be thorough, allowing all interested people to submit evidence relevant to the complaint. c. The Office of Compliance Civil Rights Coordinator tracks the response time of 1557 complaints to ensure that response letters from the respective Service Areas are mailed out within thirty (30) days after its filing, along with a notice to the complainant of the complainant's right to pursue further administrative or legal remedies. d. The Office of Compliance Civil Rights Coordinator maintains HCA files and records relating to Section 1557 grievances. To the extent possible, and per applicable law, the Office of -91-
298

Compliance Civil Rights Coordinator takes appropriate steps to preserve the confidentiality of files and records relating to grievances and shares it only with those who need to know.

Appeal Process

2. The person filing the grievance may appeal the decision of the Office of Compliance Civil Rights Coordinator (or her/his designee) by writing to the Civil Rights Appellate Board within fifteen (15) days
of receiving the Office of Compliance Civil Rights Coordinator's (or her/his designee's) decision. The Civil
Rights Appellate Board issues a written decision in response to the appeal no later than thirty (30) days after its filing.
a. The Civil Rights Appellate Board investigates the appeal complaint. b. The Civil Rights Appellate Board issues a written decision on the grievance appeal to the Appellant within thirty (30) days of receipt of the appeal.
c. The Office of Compliance Civil Rights Coordinator maintains copies of all correspondence.

SERVICE AREA. Grievance Procedures

1. If the grievance is related to race, color, national origin, sex, age, or disability, the Service Area must immediately notify the Office of Compliance Civil Rights Coordinator that the grievance is a 1557 issue.

2. The Service Area follows the grievance process per Service Area procedures.

3. The Service Area responds to the complainant:
a. No later than thirty (30) days after the grievance was filed and includes a notice to the complainant advising the complainant's right to pursue further administrative or legal remedies (paragraph C(l)).
b. Per Service Area procedures; and
c. With the content of the 1557 Formal Response Addendum (Attachment 1) in the response letter.

4. The Service Area provides copies of all correspondence to the Office of Compliance Civil Rights Coordinator .

The following explains your right to file a written grievance or complaint to Stephouse Recovery. You can file a complaint if you believe a serious issue has arisen. If you cannot submit a written complaint, you may instead explain your complaint in person or over the telephone, or we can help you to make a written complaint.

Grievance Rights

If you are already a participant of Stephouse Recovery or are asking for our help, you have a right to file a written grievance if you are unhappy with our services. For example, you might want to file a grievance if you believe that (1) we did not provide you with effective services, (2) we wrongly denied you help, or (3) we violated our legal obligations. If requested, we can give you more detailed information about what the law requires of our programs.

How to File a Grievance

1. Please mail a letter describing your grievance to the Stephouse Recovery Executive Director. Sign and date the letter and provide your return address. If you cannot give us a written grievance, you may give us your grievance verbally (e.g., by telephone or in person) or ask us to help you write it. Note: You must submit your grievance within 30 days of the incident.
a. Written grievances should be mailed to the attention of the Executive Director of Stephouse Recovery at 9769 ELLIS AVENUE, FOUNTAIN VALLEY, CA 92708. b. If you provide a return address, you will receive a written response within 15 days.

2. If you are unhappy with the Executive Director's decision/response, please mail your written appeal to our Board of Directors asking that the Board review the decision. Sign and date the letter and provide your return address. If you cannot write your grievance, call our business office and request assistance from -92-
299

one of our staff. Note: You must make your appeal within 30 days of receiving the Executive Director's decision. If the County funds your services, you may contact the Orange County Health Care Agency Behavioral Health Services to file a grievance or appeal.

3. Written appeals should be mailed to the attention of the Chair of the Board at 9769 Ellis Avenue, Fountain Valley, CA 92708.

4. If you need more information about your rights under this policy and/or need to make a grievance or appeal verbally, please call our business office at 888-923-7623.

SPECIAL INCIDENT REPORTING AND NOTIFICATION OF DEATH
A completed Special Incidence Form (SIR), using the OCHCA SIR template will be within 24 hours of a qualifying incident. Qualifying incidents include:
• Death of a current client, employee, or visitor that occurs on site or offsite during program related activity.
• Death of a former client that occurs within a year of leaving treatment. • Injuries (incl. self-injury) requiring professional medical care. • Automobile accidents
• Acts of negligence or serious breach of staff code of conduct • Loss or damage to any COUNTY property in program’s possession • Theft or vandalism which includes staff or clients.
• Violence leading to injury, trauma, or police involvement. • Overdose of current client. Include use of any naloxone. • Any sexual contact between client and staff or non-consensual between clients • Tarasoff threats
• Any incident of a serious nature that exposes the county to liability.

These incidents shall be submitted to program monitor only. • Injury, self- injury, suicide attempt not requiring professional medical care. • Inappropriate staff behavior toward clients or other staff • Any hate crime, or any discrimination or harassment based on race, sexual orientation, gender , or disability.
• Significant property damage – fire, flood, earthquake • Physical altercation between residents – no medical care or police involvement • Discovery of any alcohol or narcotics at the facility • Drug or alcohol use occurring at the facility.
• Routine illness requiring offsite medical care.
• Positive drug test (excluding at admission)

Additional details that emerge, follow-up and background info shall be provided in addendum within 48 hours of incident.

Email Notification to HPS (SIR form not required):

Notice of any serious contagious medical condition that requires containment, including (but not limited to): COVID 19, Measles, Mumps and Rubella, Tuberculosis, Chicken Pox, Pertussis (whooping cough), Hepatitis A, Meningococcal Meningitis – include housing plan for affected clients.

Upon becoming aware of the death of any person served pursuant to the OCHCA Resident Recovery Service Contract, Stephouse Recovery shall immediately notify OCHCA Program Staff. -93-
300

• All Notifications of death shall contain the name of the deceased, the date and time of death, the nature and circumstances of the death, and the name(s) of Stephouse Recovery Staff with knowledge of the incident.
• Stephouse Recovery shall notify OCHCA Program Staff by telephone immediately upon becoming aware of the death due to non-terminal illness of any person served pursuant OCHCA Resident Recovery Service Contract. Notice will only be given during normal business hours. • All death reports will be verified by the coroner’s office.

EMERGENCY RESPONSE PLAN

Call 911 in the event of:

1. Fire

2. Violence or a threat of violence

3. Suspicious persons hanging around premises

4. Burglary

5. A life-threatening medical situation

6. Chest pain

7. Shortness of breath

8. Suicide attempt

9. Unconscious individual

10. Injury in which there is a broken bone or bleeding that cannot be stopped

11. Serious fall

12. Unable to wake someone

13. Ingestion of toxic chemicals or substances

14. Suspected overdose of a substance or alcohol

15. Individual out of control

16. Individual hallucinating

17. Individual having an extreme allergic reaction

18. Extreme paranoid behavior

When overdose is suspected - administer Naloxone to the individual in crisis and dial 911.

After a resident calls 911, they should call the house manager/management and inform them of the situation. Make sure you move to a safe place to wait for the arrival of emergency assistance. DO NOT try to move an injured person, give First Aid or CPR unless you are qualified.

Upon intake, the House Manager will ensure that all residents are aware of the emergency exit routes and location of fire extinguishers for the residence. Phone numbers for the House Manager, Stephouse Recovery Management, and OC HCA Program Officers shall be kept current on the bulletin board in the common area of the residence.

FACILITY REQUIREMENTS

THE RECOVERY RESIDENCE F ACILITY SHALL BE CLEAN, SAFE, SANIT ARY , AND IN GOOD REP AIR AT ALL TIMES AND SHALL INCLUDE:
a. An alcohol and drug free living environment
b. Safe sleeping quarters, a separate bed for each client, closet and dresser space, clean linen in good repair, including lightweight, warm blankets; top and bottom sheets; pillowcases; -94-
301

mattress pads; bath towels and wash cloths.
c. Bedrooms shall not be overcrowded, allowing 70 square feet for the first two people and 50 square feet for each additional person in bedrooms, unless given prior written approval by the County of Orange
d. Basic living facilities including but not limited to: adequate bathing, hand washing and toilet facilities, lounge area, and dining area with adequate seating. e. Laundry facilities and laundry supplies at no cost to the Client. f. Toiletry articles appropriate to the health and grooming needs of the Client.

MANDATORY POSTINGS FOR HOUSES
The following documents are required to be posted at all County contracted Recovery Residence Services homes:
• Current Copy of the Sheriff Certification- Expires _j _j • House Rules, Visitation, and Non-Smoking rules if they are not noted in the House Rules (including a curfew and visitation hours)
• Current Copy of the Sheriff Certification Guidelines
• House manager information/ Hours that individual staff members will be on site • Prohibition against Alcohol and Non-Prescription Drugs • Sexual Harassment of Client or Staff is Prohibited Notice • Grievance Procedure
• Good Neighbor Policy
• Client Sign-In/Sign-Out Log
• Evacuation plan
• List of resources within the community that includes medical, dental, mental health, public health, and social services.
• Where to apply to determine eligibility for state, federal, or county entitlement programs. • Information on self-help meetings. AA, NA, and non-12-step meetings.

HOUSE LOG POLICY
Stephouse Recovery shall maintain a house log on each shift supervised by a designated staff member. The log shall be used to document staff and shift changes at the Recovery Residence and client and staff related incidents (e.g., altercations, curfew infractions, policy breaches by clients and staff, etc.). The log provides a space to document the date, time of the incident, and the printed name, signature, and title of the staff member completing the entry.

COVID-19 CORONAVIRUS POLICY
The COVID-19 situation is changing rapidly, and we recommend that staff and clients monitor the information from the CDC and CA Governor's State of Emergency for updates.

In response to the State Public Health Officer Order dated August 9, 2021, Stephouse Recovery is providing this plan to address vaccine status verification, masking requirements, and COVID-19 testing requirements.

If you believe you may have been exposed to COVID-19 or have symptoms that may indicate exposure, please contact your supervisor as soon as possible and before coming to work.

Symptoms that may indicate exposure to COVID-19 include any one of the following:
• Cough
• Fever
• Loss of smell
• Muscle aches
• Runny nose
-95-
302

• Shortness of breath
• Sore throat
Employee and Client policies and protocols

1. All Stephouse Recovery staff and clients must self-monitor for symptoms concerning COVID-19 infection. If a client displays symptoms or has a high fever, staff will contact the HCA COVID-19 Disease Control for Shelters Help Line to help the client get connected with testing and quarantining at a hotel if necessary.

2. Stephouse Recovery will contact HCA COVID-19 Disease Control for Shelters Help Line: (714) 567- 6246 if we have a question or need assistance related to a suspected or confirmed COVID-19 case.

3. Stephouse Recovery follows the most current CDC recommendations for quarantining following exposure to COVID-19.

4. Asymptomatic healthcare workers are to follow protocols in accordance with current state regulations before returning to work after potential COVID-19 exposure.

5. Staff under quarantine due to COVID-19, who are not required to be onsite, may work remotely with approval from their direct supervisor.

6. You might be asked to practice self-quarantine if you have recently returned from traveling to a part of the country or the world where COVID-19 is spreading rapidly or if you have knowingly been exposed to an infected person.

At Stephouse Recovery, self-quarantine involves:
• Using standard hygiene and washing hands frequently
• Not sharing things like towels and utensils
• Staying in your room and asking for assistance from staff • Staying at least 6 feet away from other people in your household • Always wearing an FDA-cleared surgical mask

Once a quarantine period has ended, and the person no longer has symptoms, staff must produce a negative COVID-19 test before returning to work. Clients must provide a negative COVID-19 test before returning to a normal house routine.

Respirator and Masking Requirements
Stephouse Recovery monitors and follows current California Department of Public Health (CDPH) COVID- 19 masking requirements. Stephouse Recovery reserves the right, at our discretion, to go above and beyond CDPH masking requirements in our facilities. Stephouse Recovery will regularly update staff on facility masking requirements via written memorandum. When required, staff may only wear FDA-cleared surgical masks provided by Stephouse Recovery. Cloth and other non-FDA-cleared face coverings are not allowed. When required, workers, regardless of vaccination status, must wear masks in indoor settings and anywhere they are working with another person. Stephouse Recovery does not use respirators in our facilities.

Testing Requirements
Stephouse Recovery abides by the most current CDPH COVID-19 testing requirements. Asymptomatic unvaccinated, or incompletely vaccinated workers may be tested at least once weekly with either PCR or antigen testing. Unvaccinated or incompletely vaccinated workers must also observe all other infection control requirements, including masking, and are not exempted from testing requirements even if they have a medical contraindication to vaccination as they are still potentially able to spread the illness. Persons with a previous history of COVID-19 from which the individual recovered more than 90 days earlier or a previous positive antibody test for COVID-19 do not waive requirements for testing. Diagnostic screening testing of asymptomatic fully vaccinated workers is not currently required. Stephouse Recovery is required to track test results, conduct workplace contact tracing, and must report results to local public health departments.

Intake Screening:
-96-
303

During intake, all clients at Stephouse Recovery have their temperature taken (must be less than 100.4 degrees to be admitted) and are screened for any presenting illness with the following questions:
• Do you have any aches or chills?
• Do you have a headache?
• Do you have a cough?
• Are you experiencing shortness of breath?
• Do you have any other symptoms of illness?

Social Distancing, Hygiene, Cleanliness
At Stephouse Recovery, we have implemented and encouraged social distancing at all our facilities by promoting the following:
• Clients are to stay at least 6 feet (2 meters) from other people • Stay home whenever possible
• Do not gather in groups inside or outside of the home • When out of the home, stay out of crowded places and avoid mass gatherings • COVID-19 safety is discussed in house meetings at the homes, and there are postings at the front door of each home.

Additionally, Stephouse Recovery clients are encouraged to:
• Wash hands thoroughly
• Clean and disinfect surfaces frequently
• Use hand sanitizer
• Cover mouth when coughing
• Wear masks or facial cover

STAFF REQUIREMENTS FOR EMPLOYMENT
All candidates for full or part-time employment, volunteers, and interns, prior to starting services, shall meet the following requirements:

1. No person shall have been convicted of a sex offense for which the person must register as a sex offender under PC section 290.

2. No person shall have been convicted of arson violating PC sections 451, 451.1, 451.5, 452,45231,453,454, or 455.

3. No person shall have been convicted of any violent felony as defined in PC section 667.5, which involves doing bodily harm to another person for which the staff member was convicted within five (5) years prior to employment.

4. No person shall be on parole or probation.

5. No person shall participate in the criminal activities of a criminal street gang and/or prison gang.

6. No person shall have a prior employment history of improper conduct, including but not limited to forging or falsifying documents or drug tests, sexual assault or sexual harassment, or inappropriate behavior with staff or residents at another treatment facility.

7. The Compliance Officer will be notified of any changes in the personnel holding staff positions.

Exceptions to staffing requirements set forth above may be requested if Stephouse Recovery deems the decision will benefit the program. Requests for exceptions shall be submitted in writing and also may need to be approved in advance by OCHCA.

BACKGROUND SCREENING – Stephouse Recovery screens all candidates before their date of hire.

Fingerprinting live scans are required for licensed clinical staff. All new staff must also pass a background check, including volunteers and interns. Stephouse Recovery background check includes the following -97-
304

1. A National and County Search for prior infractions, misdemeanors, felony convictions, and pending cases found at the state or county level.

2. A search of the National Sex Offenders registry

3. A Global Watchlist Search to screen for suspected terrorists, money launderers, fraudsters, politically exposed persons (PEPs), adverse media, or sanctions lists maintained by governments and regulatory agencies.

4. A social security number trace.

5. A motor vehicle report.

6. The Orange County Courts database.

7. The Megan’s Law website.

8. The Office of Inspector General’s exclusions list.

9. CA Medi-Cal exclusions list

10. The System for Award Management (Sam.gov) website, the US government exclusions list

CONFLICT OF INTEREST- Employees are forbidden from engaging in any other business that competes with Stephouse Recovery. Also, employees are forbidden from obtaining a financial interest in an outside concern that does business with or is a competitor of Stephouse Recovery (except where such ownership consists of securities of a publicly owned corporation regularly traded on the public stock market). Rendering of the directive, managerial, or consulting services to any outside concerns that does business with or is a competitor of Stephouse Recovery (except with the knowledge and written consent of Stephouse Recovery) is also prohibited. If you think that there is a possibility that you may have a conflict, it is your responsibility to notify Stephouse Recovery and obtain approval in writing.

TRAINING – All employees, select contractors, interns, and volunteers are required to complete a staff orientation that includes a review of Stephouse Recovery Policies and Procedures and expectations for performance. All staff must complete the following within six months of beginning work with Stephouse Recovery:

1. Orange County Healthcare Agency (OCHCA) Annual Provider Training

2. OCHCA Annual Compliance Training

3. Cultural Competency Training

4. Infectious Disease Recognition

5. Crisis Intervention

6. HIPAA Privacy and Confidentiality

7. Alcohol and Substance Abuse related training

8. CPR & Basic First Aid

9. Recognizing Symptoms Requiring Appropriate Referral

EMPLOYEE FILE POLICY
Each employee file must contain the following:

Application for Employment Drug & Alcohol Testing Consent & Results Resume TB Skin Test Report (conducted annually)
Job Description - signed COVID vaccination card
Background Check w/signed consent COVID Vaccine Status Certification Copy of Driver’s License Masking & Testing Requirements Attestation Proof of Car Insurance Probationary Period Acknowledgement Copy of Social Security Card Confidentiality Agreement
Form I-9 Code of Conduct
W-4 HIPAA Agreement
Wage & Hour/Meal Break Acknowledgment Anti-Defamation Clause -98-
305

Training Certificates Employee Handbook Acknowledgement Exclusions & County Screening Print Outs

OCHCA COMPLIANCE PROGRAM ACKNOWLEDGEMENT

The Chief Executive Officer shall acknowledge in writing, on behalf of Stephouse Recovery, that he is aware of and will adhere to the County of Orange Health Care Agency's Compliance Program, Code of Conduct, and related policies and procedures and shall ensure Stephouse Recovery employees, subcontractors, interns, volunteers, and members of Board of Directors or duly authorized agents (if appropriate), relative to the Agreement(s) for the Provision of AB 109 RESIDENTIAL TREATMENT SERVICES and Recovery Residence Services are made aware of and adhere to the County of Orange Health Care Agency's Compliance Program, Code of Conduct, and related policies and procedures. A signed copy of the acknowledgment shall remain on file with Stephouse Recovery compliance documents.

LITERATURE, ADVERTISEMENTS, AND SOCIAL MEDIA COMPLIANCE A. Any written information or literature, including educational or promotional materials, distributed by Stephouse Recovery to any person or organization for purposes directly or indirectly related to this Contract must be approved at least thirty (30) days in advance and in writing by ADMINISTRATOR before distribution. For the purposes of this Contract, distribution of written materials shall include, but not be limited to, pamphlets, brochures, flyers, newspaper or magazine ads, and electronic media such as the Internet.

B. Any advertisement through radio, television broadcast, or the Internet, for educational or promotional purposes, made by Stephouse Recovery for purposes directly or indirectly related to this Contract must be approved in advance at least thirty (30) days and in writing by ADMINISTRATOR.

C. If Stephouse Recovery uses social media (such as Facebook, Twitter, YouTube or other publicly available social media sites) in support of the services described within this Contract, Stephouse Recovery shall develop social media policies and procedures and have them available to ADMINISTRATOR upon reasonable notice. Stephouse Recovery shall inform ADMINISTRATOR of all forms of social media used to either directly or indirectly support the services described within this Contract. Stephouse Recovery shall comply with COUNTY Social Media Use Policy and Procedures as they pertain to any social media 28 of 39 RECOVERY RESIDENCE SERVICES MASTER AGREEMENT – FY 2023-26 MA-042-23011088 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 developed in support of the services described within this Contract. Stephouse Recovery shall also include any required funding statement information on social media when required by ADMINISTRATOR.

D. Any information as described in Subparagraphs A. and B. above shall not imply endorsement by COUNTY, unless ADMINISTRATOR consents thereto in writing.

E. Stephouse Recovery shall also clearly explain through these materials that there shall be no unlawful use of drugs or alcohol associated with the services provided pursuant to this Contract, as specified in HSC, §11999-11999.3.

For additional information, policy, and procedure regarding social media please refer to Addendum A.

NO PROSELYTIZING POLICY
Stephouse Recovery shall not conduct any proselytizing activities, regardless of funding sources, with respect to any person who has been referred to Stephouse Recovery by the County under the terms of the Agreement.

Stephouse Recovery agrees that funds provided by County shall not be used to promote, directly or indirectly, any religion, religious creed or cult, denomination or sectarian institution, or religious belief.

-99-
306

CODE OF CONDUCT
I acknowledge that I am aware of and will adhere to the Stephouse Recovery Code of Conduct and related policies and procedures, which are as follows:

Employees, subcontractors, interns, volunteers, members of the Board of Directors, and duly authorized agents

• are prohibited from manufacturing, cultivating, distributing, dispensing, possessing, or using illegal drugs (including marijuana) or other unauthorized or mind-altering or intoxicating substances while on Stephouse Recovery's property (including parking areas and grounds), or while otherwise performing work duties away from Stephouse Recovery's property. This prohibition includes lawfully controlled substances that have been illegally or improperly obtained. This policy does not prohibit the possession and proper use of lawfully prescribed drugs taken in accordance with the prescription. Off-duty possession, use, sale, or purchase of mind- altering substances and off-premises alcohol abuse is also prohibited. Alcohol abuse for the purpose of this off-duty conduct rule includes unruly behavior by an employee, which may tend to harm the reputation of Stephouse Recovery. • are committed to contributing to a work environment that is free of unlawful harassment. • always maintain the respect and dignity of each client. • are prohibited from engaging in abuse. Abuse is defined as the willful infliction of injury, unreasonable confinement, intimidation, punishment, humiliating, harassing, or threatening, resulting in physical harm, pain, or mental anguish. Any verbal, emotional, or physical abuse towards clients, visitors, and/or other staff is strictly prohibited.
• always maintain a professional relationship with all clients. This includes avoiding all conflicts of interest, fraternization, and/or any sexual contact with clients. • are strictly prohibited from all forms of unlawful harassment, which includes harassment based on race, religion, color, sex, gender identity, sexual orientation, national origin, ancestry, citizenship status, uniform service member status, marital status, pregnancy, age, protected medical condition, genetic information, disability, or any other category protected by applicable state or federal law. To prohibit sexual harassment includes a broad spectrum of conduct, including harassment based on gender and gender orientation (meaning one's heterosexuality, homosexuality, bisexuality, etc.). • committed to encouraging residents to accept personal responsibility for their behavior. • do not engage in romantic and sexual relationships with other employees or clients. Intimate or physical (especially sexual) relationships between staff or members of the board of directors and clients are strictly prohibited. This provision will remain in force throughout the client’s length of program service and until they have been out of the program for a minimum of six months. • prohibited from engaging in any other business that competes with Stephouse Recovery and will avoid conflicts of interest and interference with the productivity of other employees. • acknowledge that clients cannot be admitted to the program where a familial relationship exists with an employee of the facility. Business transactions between staff and clients (or their families) are not permitted without administrative approval.
• forbidden from obtaining a financial interest in an outside concern that does business with or is a competitor of Stephouse Recovery (except where such ownership consists of securities of a publicly owned corporation regularly traded on the public stock market). Rendering of directive, managerial, or consulting services to any outside concern that does business with or is a competitor of Stephouse Recovery (except with the knowledge and written consent of Stephouse Recovery) is also prohibited. If you think that there is a possibility that you may have a conflict, it is your responsibility to notify Stephouse Recovery and obtain approval in writing.
-100-
307

• understanding that records and files related to Stephouse Recovery business and clients are the property of Stephouse Recovery and are considered confidential. Confidential information includes all letters or any other information concerning transactions with customers, customer lists, payroll or personnel records of past or present employees, financial records, all records pertaining to purchases from vendors or suppliers, correspondence and agreements with manufacturers or distributors, and documents concerning operating procedures. All telephone calls, letters, or other requests for information about current or former employees should be immediately directed to management. Any information, recorded or not, relating to a client of any Stephouse facility is confidential and protected by the Code of Federal Regulations Title 42, Chapter 1, Part 2; the State of California Welfare & Institution Code, Sections 5326-5330, and other provisions. These regulations prohibit the disclosure of information either while employed or afterward.

DUTIES of DIRECTOR and HEAD of ADMINISTRATIVE STAFF
Duties of Director- The director, also known as the manager of recovery residence, is responsible for supervising all clients and all staff employed by or volunteering for the facility. They are responsible for the overall management, safety, compliance, and performance of the organization and each of the residences.

Duties of House Manager- Each recovery residence shall have a designated house manager or person of some authority who resides at the facility. The house manager shall

1. Generally, monitor residents daily

2. Observe, document, and report resident behavior/progress consistently and continuously.

3. Maintains resident privacy and confidentiality in compliance with HIPAA and other state and federal regulations.

4. Maintains a clean, healthy, and safe environment.

5. Ensures and monitors that each resident has a chore that is completed daily.

6. Report any need for facility maintenance or repairs that may be necessary to operate the home safely to management.

7. Monitor and report on resident curfews: 11:00 PM (with job and sponsor)/10:00 PM (without a job or sponsor) Sun-Thurs; 12:00 (everyone) Fri & Sat.

8. Communicate with the Director when issues are encountered, e.g., relapses, emergencies, behavioral incidents, family issues, etc.

9. House Managers may not engage in dual relationships with residents. Dual relationships include but are not limited to sexual relations or other sexual acts, going into business together, or employment.

Stephouse Recovery shall post the telephone number of designated on -call staff immediately upon the absence of Stephouse Recovery’s house manager and/or Director at the facility.

EMPLOYMENT EQUAL OPPORTUNITY COMPLIANCE
Stephouse Recovery is committed to equal employment opportunity and employs all qualified persons without regard to race, religion, color , national origin, ancestry, citizenship status, uniform service member/veteran status, physical disability, mental disability, medical condition, pregnancy, genetic information, marital status, sexual orientation, gender, gender identity, gender expression, age, or any other classification protected by federal, state, and local laws. Harassment of any kind will not be tolerated.

Stephouse Recovery shall also not discriminate against employees or applicants for employment in the areas of employment, promotion, demotion, or transfer; recruitment or recruitment advertising, layoff, or termination; compensation, benefits, leaves of absence, selection for training, including apprenticeship, and other terms and conditions of employment. Stephouse Recovery shall display notices from The County of Orange and the United States Equal Employment Opportunity Commission setting forth the provisions of the Equal Opportunity clause.
-101-
308

All solicitations or advertisements for employees placed by or on behalf of Stephouse Recovery shall state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status.

ANTI-HARASSMENT POLICY & COMPLAINT PROCEDURE
Stephouse Recovery strives to create and maintain a work environment where people are treated with dignity, decency, and respect. The environment of the company should be characterized by mutual trust and the absence of intimidation, oppression, and exploitation. Stephouse Recovery will not tolerate unlawful discrimination or harassment of any kind. Through enforcement of this policy and by education of employees, Stephouse Recovery will seek to prevent, correct, and discipline behavior that violates this policy.

All employees, regardless of their positions, are covered by and are expected to comply with this policy and to take appropriate measures to ensure that prohibited conduct does not occur. Appropriate disciplinary action will be taken against any employee who violates this policy. Based on the seriousness of the offense, disciplinary action may include verbal or written reprimand, suspension, or termination of employment.

Managers and supervisors who knowingly allow or tolerate discrimination, harassment, or retaliation, including the failure to immediately report such misconduct to management, violate this policy and are subject to discipline.

Prohibited Conduct Under This Policy
Stephouse Recovery, in compliance with all applicable federal, state, and local anti-discrimination and harassment laws and regulations, enforces this policy in accordance with the following definitions and guidelines:

Discrimination
It is a violation of Stephouse’s policy to discriminate in the provision of employment opportunities, benefits, or privileges; to create discriminatory work conditions; or to use discriminatory evaluative standards in employment if the basis of that discriminatory treatment is, in whole or in part, the person's race (including hairstyle/texture), color , national origin, age, religion, disability status, sex, sexual orientation, gender identity or expression, genetic information or marital status.

Discrimination of this kind may also be strictly prohibited by various federal, state, and local laws, including Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, and the Americans with Disabilities Act of 1990. This policy is intended to comply with the prohibitions stated in these anti- discrimination laws. Discrimination in violation of this policy will be subject to disciplinary measures up to and including termination.

Harassment
Stephouse Recovery prohibits harassment of any kind, including sexual harassment, and will take appropriate and immediate action in response to complaints or knowledge of violations of this policy. For purposes of this policy, harassment is any verbal or physical conduct designed to threaten, intimidate, or coerce an employee, co -worker, or any person working for or on behalf of Stephouse Recovery.

The following examples of harassment are intended to be guidelines and are not exclusive when determining whether there has been a violation of this policy:
• Verbal harassment includes comments that are offensive or unwelcome regarding a person's national origin, race, color, religion, age, sex, sexual orientation, pregnancy, appearance, disability, gender identity or expression, marital status, or another protected status, including epithets, slurs, and negative stereotyping.
• Nonverbal harassment includes distribution, display, or discussion of any written or graphic -102-
309

material that ridicules, denigrates, insults, belittles, or shows hostility, aversion, or disrespect toward an individual or group because of national origin, race, color, religion, age, gender, sexual orientation, pregnancy, appearance, disability, sexual identity, marital status or another protected status.

Sexual harassment
Sexual harassment is a form of unlawful employment discrimination under Title VII of the Civil Rights Act of 1964 and is prohibited under Stephouse's anti-harassment policy. According to the Equal Employment Opportunity Commission (EEOC), sexual harassment is defined as "unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature ... when ... submission to or rejection of such conduct is used as the basis for employment decisions ... or such conduct has the purpose or effect of creating an intimidating, hostile or offensive working environment."
Sexual harassment occurs when unsolicited and unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature:
• Is made explicitly or implicitly a term or condition of employment. • Is used as a basis for an employment decision.
• Unreasonably interferes with an employee's work performance or creates an intimidating, hostile, or otherwise offensive environment.

Sexual harassment may take different forms. The following examples of sexual harassment are intended to be guidelines and are not exclusive when determining whether there has been a violation of this policy:
• Verbal sexual harassment includes innuendoes, suggestive comments, jokes of a sexual nature, sexual propositions, lewd remarks, and threats; requests for any type of sexual favor (this includes repeated, unwelcome requests for dates); and verbal abuse or " kidding" that is oriented toward a prohibitive form of harassment, including that which is sexual in nature and unwelcome.
• Nonverbal sexual harassment includes the distribution, display, or discussion of any written or graphic material, including calendars, posters, and cartoons that are sexually suggestive or show hostility toward an individual or group because of sex; sugges tive or insulting sounds; leering; staring; whistling; obscene gestures; content in letters, notes, facsimiles, e -mails, photos, text messages, tweets, and Internet postings; or other forms of communication that are sexual in nature and offensive.
• Physical sexual harassment includes unwelcome, unwanted physical contact, including touching, tickling, pinching, patting, brushing up against, hugging, cornering, kissing, fondling, and forced sexual intercourse or assault.

Courteous, mutually respectful, pleasant, noncoercive interactions between employees that are appropriate in the workplace and acceptable to and welcomed by both parties are not considered to be harassment, including sexual harassment.

Retaliation
No hardship, loss, benefit, or penalty may be imposed on an employee in response to:
• Filing or responding to a bona fide complaint of discrimination or harassment. • Appearing as a witness in the investigation of a complaint. • Serving as an investigator of a complaint.

Lodging a bona fide complaint will not be used against the employee or adversely impact the individual's employment status. However, filing groundless or malicious complaints is an abuse of this policy and will be treated as a violation.

Any person who is found to have violated this aspect of the policy will be subject to discipline up to and including termination of employment.

Confidentiality
All complaints and investigations are treated confidentially to the extent possible, and information is -103-
310

disclosed strictly on a need -to-know basis. The identity of the complainant is usually revealed to the parties involved during the investigation, and the HR director will take adequate steps to ensure that the complainant is protected from retaliation duri ng and after the investigation. All information pertaining to a complaint or investigation under this policy will be maintained in secure files within the HR department.

Complaint procedure
Stephouse Recovery has established the following procedure for lodging a complaint of harassment, discrimination, or retaliation. The company will treat all aspects of the procedure confidentially to the extent reasonably possible.

1. Complaints should be submitted as soon as possible after an incident has occurred, preferably in writing. The Director may assist the complainant in completing a written statement or, in the event an employee refuses to provide information in writing, the Director will dictate the verbal complaint.

2. Upon receiving a complaint or being advised by a supervisor or manager that a policy violation may occur, the Director will notify senior management and review the complaint with the company's legal counsel.

3. The Director will initiate an investigation to determine whether there is a reasonable basis for believing that the alleged violation of this policy occurred.

4. If necessary, the complainant and the respondent will be separated during the course of the investigation, either through internal transfer or administrative leave.

5. During the investigation, the Director, legal counsel, and other management employees will interview the complainant, the respondent, and any witnesses to determine whether the alleged conduct occurred.

6. Upon conclusion of an investigation, the Director or other person conducting the investigation will submit a written report of his or her findings to the company. If it is determined that a violation of this policy has occurred, the Director will recommend appropriate disciplinary action. The appropriate action will depend on the following factors:
a) the severity, frequency, and pervasiveness of the conduct b) prior complaints made by the complainant
c) prior complaints made against the respondent; and
d) the quality of the evidence (e.g., firsthand knowledge, credible corroboration).

If the investigation is inconclusive or if it is determined that there has been no violation of policy but potentially problematic conduct may have occurred, the Director may recommend appropriate preventive action.

7. Senior management will review the investigative report and any statements submitted by the complainant or respondent, discuss the results of the investigation with the Director and other management staff as appropriate, and decide what action, if any, will be taken.

8. Once a final decision is made by senior management, the Director will meet with the complainant and the respondent separately and notify them of the findings of the investigation.

If disciplinary action is to be taken, the respondent will be informed of the nature of the discipline and how it will be executed.

Alternative legal remedies
Nothing in this policy may prevent the complainant or the respondent from pursuing formal legal remedies or resolution through local, state, or federal agencies or the courts.

STAFF DRUG TEST POLICY

• All staff must be drug tested within the first 30 days of employment. • Staff will be drug tested annually after the initial test. -104-
311

• Staff may be drug tested if under suspicion or requested by management. • All employees who test positive in a confirmed substance test will be subject to discipline up to and including termination.
• Employees will be held accountable to the Stephouse Recovery Guidelines on Drug Testing provided to them in Employee Packet.

Who is Tested

1. Employees may be required to submit to drug/alcohol screening whenever Stephouse Recovery has a reasonable suspicion that they have violated any of the rules set forth in this policy or in the Stephouse Recovery Code of Conduct. Reasonable suspicion may arise from, among other factors, supervisory observation, co-worker reports or complaints, performance decline, attendance or behavioral changes, results of drug searches or other detection methods.

2. Employees in safety sensitive positions may be tested on a random or periodic basis to the extent permitted by applicable state and federal laws. In addition, various job classifications are categorically subject to random or periodic drug testing to the extent permitted by applicable state and federal laws. Employees involved in a work- related injury or accident may also be subject to testing.

STAFF DISCHARGE PROCEDURE
When a staff member quits, is terminated, or laid off, Stephouse Recovery w i l l inform Orange County Health Care Agency. Any changes in the personnel holding staff positions must be quickly communicated.

DRUG-FREE WORKPLACE POLICY
It is the policy of The Stephouse Recovery to comply with local, state, and federal laws, regulations, and standards. Our Health and Safety policy outlines the written procedures to ensure the facility is maintained in a clean, safe, sanitary condition and is an alcohol and drug free environment for staff and clients.

Alcohol and Drug Use - Every employee must fully familiarize themselves with the Stephouse Recovery stance on being drug free. Drinking alcoholic beverages on the job or reporting to work while under the influence of alcohol and/or any other drug or narcotic, or at any time on or off the job for the recovery staff, is strictly prohibited .

INSPECTIONS AND AUDITS
OCHCA, any authorized representative of OCHCA, any authorized representative of the State of California, the Secretary of the United States Department of Health and Human Services, the Comptroller General of the United States, or any other of their authorized representatives, shall to the extent permissible under applicable law have access to any books, documents, and records, including but not limited to, financial statements, general ledgers, relevant accounting systems, medical and Client records, of Stephouse Recovery that are directly pertinent to this Agreement, for the purpose of responding to a beneficiary complaint or conducting an audit, review, evaluation, or examination, or making transcripts during the periods of retention set forth in the Records Management and Maintenance Paragraph of Contract Agreement. Such persons may at all reasonable times inspect or otherwise evaluate the services provided pursuant to the Contract Agreement, and the premises in which they are provided.

Stephouse Recovery shall actively participate and cooperate with any person specified in the paragraph above in any evaluation or monitoring of the services provided pursuant to the Contract Agreement and shall provide the above-mentioned persons adequate office space to conduct such evaluation or monitoring.

AUDIT RESPONSE Following an audit report, in the event of non-compliance with applicable laws and regulations governing funds provided through the Contract Agreement, OCHCA may -105-
312

terminate the Agreement as provided in the Termination Paragraph or direct Stephouse Recovery to implement appropriate corrective action immediately. A CAP shall be submitted to OCHCA in writing within thirty (30) calendar days after receiving notice from OCHCA. 2. If the audit reveals that money is payable from one Party to the other, that is, reimbursement by Stephouse Recovery to OCHCA, or payment of sums due from OCHCA to Stephouse Recovery, said funds shall be due and payable from one Party to the other within sixty (60) calendar days of receipt of the audit results. If reimbursement is due from Stephouse Recovery to OCHCA, and such reimbursement is not received within said sixty (60) calendar days, OCHCA may, in addition to any other remedies provided by law, reduce any amount owed Stephouse Recovery by an amount not to exceed the reimbursement due OCHCA.

A. Stephouse Recovery shall forward to OCHCA a copy of any audit report within fourteen (14) calendar days of receipt. Such audit shall include, but not be limited to, management, financial, programmatic, or any other type of audit of STEP HOUSE RECOVERY's operations, whether the cost of such operation or audit is reimbursed in whole or in part through the Agreement.

REPORTING AND BILLING POLICY AND PROCEDURE
REPORTS – Stephouse Recovery shall submit a monthly program report to the County of Orange no later than the 10th calendar day following the reporting month.

1. Monthly program reports shall include:
a. completion, retention, and abstinence rates
b. challenges with implementing the provisions of the County Agreement and a statement that Stephouse Recovery is or is NOT progressing satisfactorily in achieving all the terms of the County Agreement.
c. pertinent facts and interim findings
d. staff changes
e. status of license(s) and certification(s)
f. changes in the population served and reasons for any changes

COMPLIANCE
To ensure adherence to all rules and regulations related to federal and state health care programs, Stephouse Recovery will comply with the Orange County Compliance Program, and Code of Conduct, and make available General Compliance Training and education to Covered Individuals.

Stephouse Recovery has designated a Compliance Officer who is responsible for compliance policies and procedures and tracking required training. The Compliance Officer will conduct internal monitoring and auditing and other elements as outlined by the Orange County Compliance Program.

Stephouse Recovery will screen all Covered Individuals employed or retained at hire and then monthly thereafter against:
• General Services Administrations Excluded Parties List System or • System for Award Management and
• Health and Human Services/Office of Inspector General List of Excluded Individuals/Entities and • The California Medi-Cal Suspended and Ineligible Provider List and • Social Security Administration Death Master File
Screening is completed to ensure no Covered Individual is designated as an Ineligible Person**. *Covered Individual is defined as all employees, interns, volunteers, contractors, subcontractors, agents, and other persons who provide health care items, and services, or who perform billing or coding functions. **Ineligible Person is defined as any individual or entity who:
● Is currently excluded, suspended, debarred or otherwise ineligible to participate in federal and state health care programs; or
● Has been convicted of a criminal offense related to the provision of health care items or services and -106-
313

has not been reinstated in the federal and state health care programs after a period of exclusion, suspension, debarment, or ineligibility.

Covered Individuals are required to disclose to Stephouse Recovery management of any new events that may designate individuals as Ineligible Persons. Stephouse will immediately notify Orange County of any status of change of Covered Individuals. Stephouse will immediately remove Ineligible Persons from involvement with Orange County program operations.

GENERAL AND SPECIALIZED PROVIDER COMPLIANCE TRAINING
The County of Orange shall make General Compliance Training available to covered individuals:
• Stephouse shall use its best effort to encourage completion by all covered individuals. At a minimum Stephouse Recovery shall assign at least one designated representative to complete the General Compliance Training when it is available.
• Training will be completed within 30 calendar days of employment or engagement. • Training is to be renewed annually.
• Covered individuals attending group training must certify in writing their attendance of compliance training. *The County of Orange shall provide instruction on group training completion.

The County of Orange shall make specialized provider training available to covered individuals. • Stephouse shall ensure all covered individuals complete this training. • Training will be completed within 30 days of employment or engagement. • Training is to be renewed annually.

Covered individuals attending group training must certify in writing their attendance of compliance training. *The County of Orange shall provide instruction on group training completion.

MEDICAL BILLING, CODING, AND

DOCUMENTATION COMPLIANCE STANDARDS
• Stephouse Recovery shall take reasonable precautions to ensure that the coding of claims, billings and or invoices are prepared and submitted in an accurate and timely manner consistent with federal, state, and county laws and regulations, including the Centers for Medicare and Medicaid Services or their agents.
• Stephouse Recovery will not submit false claims.
• Stephouse Recovery shall bill for eligible services rendered and fully documented. Must ensure compliance with all billing and documentation requirements. • Stephouse Recovery will promptly investigate and correct any problems or errors in the coding of claims and billing.
• Stephouse Recovery has 45 business days to return any overpayment. • Stephouse Recovery will meet HCA MHP Quality Management Program Standards and participate in the quality improvement activities developed in implementing the Quality Management Program.
• Stephouse Recovery shall maintain the confidentiality of all records, including billings, and audio and video recordings, in accordance with all applicable federal, state, and county codes and regulations such as 42 SS USC 299dd-2.
• All Stephouse Recovery employees shall agree, in writing, with Stephouse Recovery to maintain the confidentiality of all info and records.

INSURANCE STANDARDS
Stephouse Recovery will retain insurance coverage from a carrier with a minimum rating of A- (Secure A.M.

Best's Rating) and VIII (Financial Size Category as determined by the most current edition of the Best's Key -107-
314

Rating Guide/Property–Casualty/United States or ambest.com). Stephouse Recovery is licensed in the state of California. Stephouse Recovery will retain the following types of coverage:
• Commercial General Liability
• Automobile Liability (Stephouse Recovery will ensure that employees, where applicable, shall retain the same)
• Workers' Compensation
• Employers' Liability Insurance
• Network Security & Privacy Liability
• Professional Liability Insurance
• Sexual Misconduct Liability Insurance
Required Coverage Form:

1. The Commercial General Liability coverage shall be written on ISO form CG 00 01, or a substitute form providing liability coverage at least as broad.

2. The Business Automobile Liability coverage shall be written on ISO form CA 00 01, CA 00 OS, CA 00 12, CA 0020, or a substitute form providing coverage at least as broad.

Required Endorsements:

The Commercial General Liability policy shall contain the following endorsements, which shall accompany the COI (Certificate of Insurance):
• An Additional Insured endorsement using ISO form CG 20 26 04 13 or a form at least as broad naming the County of Orange, its elected and appointed officials, officers, employees, and agents as Additional Insureds, or provide blanket coverage, which will state as required by written agreement.
• A primary non-contributing endorsement using ISO form CG 20 01 04 13, or a form at least as broad evidencing that Stephouse Recovery's insurance is primary, and any insurance or self - insurance maintained by the County of Orange shall be excess and non-contributing. **The Commercial General Liability policy shall contain a "severability of interests" clause, also known as a "separation of insureds" clause (standard in the ISO CG 0001 policy).

The Network Security and Privacy Liability policy shall contain the following endorsements, which shall accompany the Certificate of Insurance:
• An Additional Insured endorsement naming the County of Orange, its elected and appointed officials, officers, agents, and employees as Additional Insureds for its vicarious liability. • A primary and non-contributing endorsement evidencing that Stephouse Recovery insurance is primary, and any insurance or self-insurance maintained by the County of Orange shall be excess and non-contributing.

The Workers' Compensation policy shall contain:
• A waiver of subrogation endorsement waiving all rights of subrogation against the County of Orange, its elected and appointed officials, officers, agents, and employees, or provide blanket coverage, which will state As Required by Written Agreement **Stephouse Recovery shall notify County in writing within thirty (30) days of any policy cancellation and within ten (10) days for non-payment of premium and provide a copy of the cancellation notice to County. Failure to provide written notice of cancellation shall constitute a breach of Stephouse Recovery’s obligation hereunder and grounds for County to terminate the Agreement. **If Professional Liability and/or Network Security and Privacy Liability are "claims made" policies, Stephouse Recovery shall agree to maintain coverage for two (2) years following the completion of the Agreement.

SUBMISSION OF INSURANCE DOCUMENTS

1. The COI and endorsements shall be provided to County as follows:
a. Prior to the start of this Agreement
b. No later than the expiration date for each policy
c. Within thirty (30) calendar days upon receipt of written notice by the County regarding changes to any of the insurance types
-108-
315

2. The COI and endorsements shall be provided to the County at the address specified in the Referenced Contract Provision of this Agreement.

3. If Stephouse Recovery fails to submit the COI and endorsements that meet the insurance provisions stipulated in this Agreement by the above specified due dates, The County of Orange shall have sole discretion to impose one or both of the following:
a. May withhold or delay any or all payments due Stephouse Recovery until it is submitted to The County of Orange.
b. Stephouse Recovery may be assessed a penalty of one hundred dollars ($100) for each late COI or endorsement for each business day
c. If Stephouse Recovery is assessed a late penalty, the amount shall be deducted from Stephouse Recovery’s monthly invoice.

RECORDS POLICY & PROCEDURES

ALL FILES SHALL BE KEPT IN A LOCKED CABINET AND ACCESS SHALL BE LIMITED TO THE CLIENT FILES ON A NEED-TO-KNOW BASIS. Client files may contain:

2. A personal information form that contains:
a. Personal data for proper identification
b. Length of sobriety and prior recovery experience
c. The names of the Client's current outpatient care option (treatment facility or Day Reporting Center)
d. Name of referral source to facility

3. The Client's treatment plan recommendations from referral sources and others (Notations about how the facility can assist the Client in implementing their treatment related court orders and or treatment plan recommendations)

4. List of prescribed medication used by the client

5. Waiver of confidentiality, signed at the time of the Client's initial intake into the Recovery Residence Facility

6. Health Care Agency referral form for Recovery Residence Services

7. Copies of all progress reports and all correspondences written by STEPHOUSE RECOVERY staff regarding the Client

8. Dates and results of all drug and alcohol tests and all forms related to such tests (keep the physical test for the first year)

9. Overnight pass information

10. Dates of Client's entry and completion or termination from the facility, including circumstances of their discharge.

11. A copy of the Recovery Residence facility rules and Client Intake forms signed and dated by the Client upon entry into the Recovery Residence facility.

12. Client's files are restricted access to persons who have a legitimate need to view them. Only Stephouse Recovery staff and people that have been added to a release of information that is signed by the client will have access.

RECORDS MANAGEMENT AND MAINTENANCE
A. Stephouse Recovery, its officers, agents, employees, and sub- contractors shall, throughout the term of the Contract Agreement, prepare, maintain, and manage records appropriate to the services provided and in accordance with the Agreement and all applicable requirements.

1. Stephouse Recovery shall maintain records that are adequate to substantiate the services for which claims are submitted for reimbursement under the Agreement and the charges thereto. Such records shall include, but not be limited to, individual patient charts and utilization review records.

2. Stephouse Recovery shall keep and maintain records that include referral and intake documents, client identification, insurance information and authorizations to share -109-
316

information. Additional records include client drug screening, and supporting logs as required by OCHCA.

3. Stephouse Recovery shall maintain books, records, documents, accounting procedures and practices, and other evidence sufficient to reflect properly all direct and indirect cost of whatever nature claimed to have been incurred in the performance of the Agreement and in accordance with Medicare principles of reimbursement and GAAP .

4. Stephouse Recovery shall ensure the maintenance of medical records required by §70747 through and including §70751 of the CCR, as they exist now or may hereafter be amended, the medical necessity of the service, and the quality of care provided. Records shall be maintained in accordance with §51476 of Title 22 of the CCR, as it exists now or may hereafter be amended.

B. Access to client records and information is restricted by job title, individual need to know or need to complete job duties and contract requirements. Non-routine access to client records must be approved by Stephouse Director or Compliance Officer. These include, but are not limited to the following:

1. Research

2. Subpoena

3. Court Orders

4. Mandatory Reporting

5. Accreditation Surveys

6. Law Enforcement

7. Government Agencies
C. Stephouse Recovery shall implement and maintain administrative, technical, and physical safeguards to ensure the privacy of PHI and prevent the intentional or unintentional use or disclosure of PHI in violation of the HIPAA, federal, and state regulations. Stephouse Recovery shall mitigate to the extent practicable, the known harmful effect of any use or disclosure of PHI made in violation of federal or state regulations and/or OCHCA policies.

D. Stephouse Recovery participant, client, and/or patient records shall be maintained securely.

Stephouse Recovery shall maintain participant, client, and/or patient records and has established and implements written record management procedures.

E. Stephouse Recovery shall retain all financial records for a minimum of ten (10) years from the termination of the Agreement unless a longer period is required due to legal proceedings such as litigations and/or settlement of claims.

E. Stephouse Recovery shall retain all client and/or patient medical records for ten (10) years following discharge of the participant, client, and/or patient.

F. Stephouse Recovery shall make records pertaining to the costs of services, participant fees, charges, billings, and revenues available at one (1) location within the limits of the OCHCA of Orange. If Stephouse Recovery is unable to meet the record location criteria above, OCHCA may provide written approval to Stephouse Recovery to maintain records in a single location, identified by Stephouse Recovery.

G. Stephouse Recovery shall notify OCHCA of any PRA requests related to, or arising out of, this Agreement, within forty-eight (48) hours. Stephouse Recovery shall provide OCHCA all information that is requested by the PRA request.

H. Stephouse Recovery shall ensure all HIPAA DRS requirements are met. HIPAA requires that clients, participants and/or patients be provided the right to access or receive a copy of their DRS and/or request an addendum to their records. Title 45 CFR §164.501, defines DRS as a group of records maintained by or for a covered entity that is:

1. Medical and billing records about individuals maintained by or for a covered healthcare provider .

2. The enrollment, payment, claims adjudication, and case or medical management record systems maintained by or for a health plan; or
-110-
317

3. Used, in whole or in part, by or for the covered entity to make decisions about individuals.

I. Stephouse Recovery may retain client, and/or patient documentation electronically in accordance with the terms of this Agreement and common business practices. If documentation is retained electronically, Stephouse Recovery shall, in the event of an audit or site visit:

1. Have documents readily available within twenty-four (24) hour notice of a scheduled audit or site visit.

2. Provide auditor or other authorized individuals access to documents via a computer terminal.

3. Provide the auditor or other authorized individuals with a hardcopy printout of documents, if requested.

J. Stephouse Recovery shall ensure compliance with requirements pertaining to the privacy and security of PII and/or PHI. Stephouse Recovery shall, upon discovery of a Breach of privacy and/or security of PII and/or PHI by Stephouse Recovery, notify federal and/or state authorities as required by law or regulation, and copy OCHCA on such notifications.

K. Stephouse Recovery may be required to pay any costs associated with a Breach of privacy and/or security of PII and/or PHI, including but not limited to the costs of notification.

Stephouse Recovery shall pay any and all such costs arising out of a Breach of privacy and/or security of PII and/or PHI.

L. Stephouse Recovery shall make records pertaining to the costs of services, patient fees, charges, billings, and revenues available at one (1) location within the limits of the OCHCA of Orange.

HIPAA PRIVACY AND SECURITY/NOTICE OF PRIVACY PRACTICES
Stephouse Recovery intends to protect the privacy and provide for the security of PHI that may be created, received, maintained, transmitted, used, or disclosed pursuant to the Agreement in compliance with the applicable standards, implementation specifications, and requirements of HIPAA, the HITECH Act, and the HIPAA regulations as they may exist now or be hereafter amended.

Stephouse Recovery understands and acknowledges that HIPAA, the HITECH Act, and the HIPAA regulations do not pre-empt any state statutes, rules, or regulations that are not otherwise pre- empted by other Federal law(s) and impose more stringent requirements with respect to t h e privacy of PHI.

Stephouse Recovery agrees not to use or further disclose PHI from OCHCA to Stephouse Recovery other than as permitted or required by this Business Associate Contract or as required by law.

Stephouse Recovery agrees to comply with the HIPAA Security Rule at Subpart C of 45 CFR Part 164 with respect to electronic PHI OCHCA discloses to Stephouse Recovery, or Stephouse Recovery creates, receives, maintains, or transmits on behalf of OCHCA.

Stephouse Recovery agrees to mitigate, to the extent practicable, any harmful effect that is known to Stephouse Recovery of a Use or Disclosure of PHI by Stephouse Recovery in violation of the requirements of this Business Associate Contract.

Stephouse Recovery agrees to report to OCHCA immediately any Use or Disclosure of PHI not provided for by this Business Associate Contract of which Stephouse Recovery becomes aware.

Stephouse Recovery must report Breaches of Unsecured PHI in accordance with Subparagraph E below and as required by 45 CFR § 164.410.

Stephouse Recovery shall ensure the continuous security of all computerized data systems containing electronic PHI OCHCA discloses to Stephouse Recovery or Stephouse Recovery creates, receives, maintains, or transmits on behalf of OCHCA. Stephouse Recovery shall protect paper documents containing PHI OCHCA discloses to Stephouse Recovery ERY , or Stephouse Recovery creates, receives, maintains, or transmits on behalf of OCHCA. These steps shall include complying with all the data system security precautions listed under Subparagraphs E, and achieving and maintaining -111-
318

compliance with the HIPAA Security Rule, as necessary in conducting operations on behalf of OCHCA.

BREACH POLICY
“Breach” means the acquisition, access, use, or disclosure of PHI in a manner not permitted under the HIPAA Privacy Rule which compromises the security or privacy of the PHI. "Breach" shall have the meaning given to such term under the IEA and CMPPA. It shall include a "PII loss" as that term is defined in the CMPPA. "Breach of the security of the system" shall have the meaning given to such term under the CIPA, CCC § 1798.29(d).
a. Breach excludes:
1) Any unintentional acquisition, access, or use of PHI by a workforce member or person acting under the authority of Stephouse Recovery or OCHCA , if such acquisition, access, or use was made in good faith and within the scope of authority and does not result in further use or disclosure in a manner not permitted under the Privacy Rule.
2) Any inadvertent disclosure by a person who is authorized to access PHI at Stephouse Recovery to another person authorized to access PHI at Stephouse Recovery, or organized health care arrangement in which OCHCA participates, and the information received as a result of such disclosure is not further used or disclosed in a manner not permitted under the HIPAA Privacy Rule. 3) A disclosure of PHI where Stephouse Recovery or OCHCA has a good faith belief that an unauthorized person to whom the disclosure was made would not reasonably have been able to retains such information.
b. Except as provided in paragraph (a) of this definition, an acquisition, access, use, or disclosure of PHI in a manner not permitted under the HIPAA Privacy Rule is presumed to be a breach unless Stephouse Recovery demonstrates that there is a low probability that the PHI has been compromised based on a risk assessment of at least the following factors:
1) The nature and extent of the PHI involved, including the types of identifiers and the likelihood of re-identification;
2) The unauthorized person who used the PHI or to whom the disclosure was made; 3) Whether the PHI was actually acquired or viewed; and 4) The extent to which the risk to the PHI has been mitigated.

BREACH DISCOVERY AND NOTIFICATION

1. Following the discovery of a Breach of Unsecured PHI , Stephouse Recovery shall notify OCHCA of such Breach, however both parties agree to a delay in the notification if so advised by a law enforcement official pursuant to 45 CFR § 164.412.
a. A Breach shall be treated as discovered by Stephouse Recovery as of the first day on which such Breach is known to Stephouse Recovery or, by exercising reasonable diligence, would have been known to Stephouse Recovery.
b. Stephouse Recovery shall be deemed to have knowledge of a Breach, if the Breach is known, or by exercising reasonable diligence would have known, to any person who is an employee, officer, or other agent of Stephouse Recovery, as determined by federal common law of agency.

2. Stephouse Recovery shall provide the notification of the Breach immediately to the County Privacy Officer. Stephouse Recovery’s notification may be oral but shall be followed by written notification within 24 hours of the oral notification.

3. Stephouse Recovery’s notification shall include, to the extent possible:
a. The identification of each Individual whose Unsecured PHI has been, or is reasonably believed by Stephouse Recovery to have been, accessed, acquired, used, or disclosed during the Breach;
b. Any other information that OCHCA is required to include in the notification to Individual under 45 CFR §164.404 (c) at the time Stephouse Recovery is required to notify OCHCA or promptly thereafter as this information becomes available, even after the regulatory sixty (60) day period set forth in 45 CFR § 164.410 (b) has elapsed, including:
-112-
319

1) A brief description of what happened, including the date of the Breach and the date of the discovery of the Breach, if known;
2) A description of the types of Unsecured PHI that were involved in the Breach (such as whether full name, social security number, date of birth, home address, account number, diagnosis, disability code, or other types of information were involved); 3) Any steps Individuals should take to protect themselves from potential harm resulting from the Breach;
4) A brief description of what Stephouse Recovery is doing to investigate the Breach, to mitigate harm to Individuals, and to protect against any future Breaches; and 5) Contact procedures for Individuals to ask questions or learn additional information, which shall include a toll-free telephone number, an e-mail address, Web site, or postal address.

4. COUNTY may require Stephouse Recovery to provide notice to the Individual as required in 45 CFR § 164.404, if it is reasonable to do so under the circumstances, at the sole discretion of OCHCA.

5. In the event that Stephouse Recovery is responsible for a Breach of Unsecured PHI in violation of the HIPAA Privacy Rule, Stephouse Recovery shall have the burden of demonstrating that Stephouse Recovery made all notifications to OCHCA consistent with this Paragraph E and as required by the Breach notification regulations, or, in the alternative, that the acquisition, access, use, or disclosure of PHI did not constitute a Breach.

6. Stephouse Recovery shall maintain documentation of all required notifications of a Breach or its risk assessment under 45 CFR § 164.402 to demonstrate that a Breach did not occur.

7. Stephouse Recovery shall provide to COUNTY all specific and pertinent information about the Breach, including the information listed in Section E.3.b.(1)-(5) above, if not yet provided, to permit COUNTY to meet its notification obligations under Subpart D of 45 CFR Part 164 as soon as practicable, but in no event later than fifteen (15) calendar days after Stephouse Recovery’s initial report of the Breach to OCHCA pursuant to Subparagraph E.2 above.

8. Stephouse Recovery shall continue to provide all additional pertinent information about the Breach to OCHCA as it may become available, in reporting increments of five (5) business days after the last report to OCHCA. Stephouse Recovery shall also respond in good faith to any reasonable requests for further information, or follow-up information after report to OCHCA, when such request is made by OCHCA.

9. If the Breach is the fault of Stephouse Recovery, Stephouse Recovery shall bear all expense or other costs associated with the Breach and shall reimburse OCHCA for all expenses OCHCA incurs in addressing the Breach and consequences thereof, including costs of investigation, notification, remediation, documentation or other costs associated with addressing the Breach.

INTAKE POLICY AND PROCEDURE
Admission Criteria
Stephouse Recovery must receive an email from the OCHCA gatekeeper. Once a client arrives, we fax the Referral form back to HCA.

Intake means the initial face-to-face meeting between a Client and Stephouse Recovery staff in which specific information about the Client is gathered, including waiver of confidentiality and other required documents signed at the time of the Client's initial intake into the Recovery Residence facility. This is completed to permit disclosure of designated information about the Client to HCA, Treatment Provider, Courts, Orange County Probation Department, (OCPD), Parole Department, Public Defender, and/or District Attorney.

Intake Prescreening Policy, Readmission, Intake and Discharge Criteria Policy and Procedure It is the policy of Stephouse Recovery to have every client goes through an intake process upon arrival.

It is the policy of Stephouse Recovery to maintain consistent Admission, Readmission, and Intake Criteria.
*If a client is deemed to need a higher level of care, Stephouse Recovery will not accept the client into -113-
320

the program and will refer the client back to OCHCA*
Procedure
All clients requesting admission are scheduled for an intake session with designated staff. The staff will conduct a face-to-face interview and is responsible for the appropriate assessment collected on the intake form and reviewed by the intake staff.

Criteria to qualify for enrollment includes
▪ A willingness to continue sobriety
▪ Abstinence from drugs and alcohol for at least one month prior to admittance ▪ Successful completion of a detox and treatment program. ▪ No one who is under the influence or displaying questionable or dangerous behaviors will be admitted to Stephouse Recovery. OCHCA requires that staff are trained in Recognizing Symptoms Requiring Appropriate Referral.
▪ Residents must be capable of living independently.

Should a referral be denied admission, the person will be referred back to the OC HCA Gatekeeper for more appropriate placement.

During the intake process, the intake staff will perform the following functions:
▪ Review client rights
▪ Review Stephouse Recovery policies and procedures
▪ Obtain the consent and appropriate release of information

OUTPATIENT PARTICIPATION POLICY
Clients that include mandatory participation, either in a COUNTY-approved outpatient treatment program and/or the Day Reporting Center (DRC), must comply or be discharged. Exceptions to aftercare linkages must be approved by THE COUNTY OF ORANGE.

Clients must attend outpatient meetings (AA, NA, etc.) as required by the referring agency. Staff will collect client meeting cards weekly on Sunday evenings at the home. If the client is unavailable on Sunday evening, it is their responsibility to arrange for staff to receive the cards prior to Sunday evening. Clients are required to complete meeting cards as proof of attendance and the cards must be signed by the client’s meeting counselor or group leader. Periodically Stephouse Recovery will contact the program where the client is attending meetings, requesting verification of attendance. Therefore, at the time of intake, Stephouse Recovery requires a signed release of patient information form from the client for the outpatient or day reporting program.

A client’s file must have the names of the client’s current outpatient care option (treatment facility or Day Reporting Center) and signed meeting cards showing proof of attendance.

OUTPATIENT TREATMENT PARTICIPATION COLLECTION
• Client must enroll in the required Outpatient approved treatment within 30 days of intake.
• Newly admitted clients are required to provide a letter of proof of enrollment. • If clients are not enrolled in Outpatient treatment within 30 days, they are referred back to the screener and discharged. The client's probation officer will be contacted. • Stephouse administration will periodically contact the client’s Outpatient facility to confirm client attendance.
• Clients are given meeting logs to document Outpatient therapy; all therapy must be added, including online therapy.
• Clients turn in meeting logs at the end of each month.

TRACKING PROCEDURE
The client’s file must have the names of the Client's current outpatient care option (treatment facility or Day Reporting Center) and keep proof from the client of attending. -114-
321

Clients must attend outpatient meetings (AA, NA, etc.) as required by the referring agency. Staff will collect client meeting cards weekly on Sunday evenings at the home. If the client is unavailable Sunday evening, it is their responsibility to arrange for staff to receive the cards before Sunday evening. The completed meeting cards are proof of attendance. The clients receive the meeting cards from the outpatient treatment program, Day Reporting Center (DRC), court, or probation officer.

CLIENT SIGN-IN/OUT LOG - All clients must sign in/out when entering or leaving the residence. Failure to do so will result in a write-up, or discharge from the program as needed. Stephouse Recovery shall provide logs for all clients that will include the following information:
• Client name and signature when leaving and signature again when returning • Date and time leaving the Recovery Residence facility • Estimated time of return to the facility
• Location and telephone number where the client may be reached The Stephouse Recovery shall achieve performance objectives, tracking and reporting Performance Outcome Objective statistics in monthly programmatic reports, as appropriate. Revisions to objectives and services may be implemented by mutual agreement between STEPHOUSE RECOVERY and THE COUNTY OF ORANGE. Stephouse will submit timely and accurate monthly reports via a HIPAA- compliant link online.

Stephouse Recovery shall provide an effective sober living program to Clients with identified alcohol and/or drug problems as measured by Employment and Housing Linkage Rates. • Employment Rate: Eighty Percent (80%) of all clients successfully completing the program shall obtain employment, be enrolled in school, or participate in regular volunteer activities by discharge. Clients who are enrolled as full -time students or are deemed physically or mentally disabled by a certified physician, and who have volunteered for more than ten (10) hours per week in the community are considered employed. The employment rate shall be calculated by the number of clients who obtained employment ( as defined above) at the completion of Recovery Residence Services divided by the number of clients completing Recovery Residence Services during the evaluation period.
• Housing Linkage Rate: Eighty Percent (80%) of all clients shall be linked to stable housing upon completion of Recovery Residence Services. Housing Linkage Rate shall be calculated by the number of clients transitioning to stable housing upon completion of Recovery Residence Services divided by the number of Clients completing Recovery Residence Services during the evaluation period.

Bed Day means one (1) calendar day during which Stephouse Recovery provides Recovery Residence Services as described in Exhibit A of the Agreement. A Bed Day will include the day of admission but not of discharge. If admission and discharge occur on the same day, one (1) Bed Day will be charged. Probation and the HCA staff are to be notified as soon as possible upon a client's discharge.

CLIENT RELAPSE POLICY
If a client relapses, staff will complete an incident report and notify the Program Monitor and the client’s Probation Officer. Stephouse Recovery management will decide if the client can stay in the program. If the client does stay in the program, he or she will be placed on a behavioral contract with zero tolerance for any further violation of Stephouse rules. If the client does not stay in the program, he or she will be referred by Stephouse to a different facility/program. Please see the Discharge Policy and Procedure for additional actions for relapsed clients.

-115-
322

DISCHARGE PROCEDURES FOR STAFF
Procedure
A client has completed the program when they have used their maximum allotted time or reached their goals for transition. However, when a client leaves Stephouse Recovery for any reason, the staff must fax back the original Client Referral Form to the OCHCA Gatekeeper. The bottom portion of the form must include the discharge date, complete or incomplete, and the reason for leaving.

Clients successfully completing the program should complete and sign an AB109 Discharge Plan form. Staff should also complete the Stephouse Recovery Discharge Form to assist in reporting information to OCHCA.

No signature is required from clients who are terminated before completion.

Failure to comply with Stephouse policies signed at intake may result in a written warning or termination from the program. Infractions will be documented in the client's record, and a behavioral contract will accompany the written warning. If the client is terminated, the OCHA Gatekeeper will be notified immediately via fax, and the OCHA Program Officer will be notified by email. When applicable, the client's Probation Officer and/or emergency contact will also be notified.

Housing Resources shall be provided to clients regardless of completion status. In the case of homelessness, the appropriate city agency will be contacted to determine if services are available for the client. Should transportation to treatment or a shelter be necessary, Stephouse will provide.

In addition, there may be circumstances where law enforcement may be called, and legal action taken against the client.

If a client discharges from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity. Clients terminated from the program must be sober before they enter Stephouse property.

Each client should receive a housing resource guide upon discharge.

Cause for Discharge Criteria
• If a client needs a higher level of care.
• The client has not returned, and no contact has been made after three (3) days. • Theft of any kind. Theft may also result in legal proceedings. • Threatening or dangerous behavior.
• Behavior that is not conducive to recovery. Unacceptable behavior includes but is not limited to sexual activity on the premises, fighting, stealing, lying, etc. • Confrontational behavior, harassment, and being a constant nuisance to other clients or staff. • Continuous poor behavior and attitude toward staff or other clients. • Positive results/refusal of urinalysis, breathalyzer, or any other drug test. Refusal to test is equivalent to a POSITIVE test.
• DRUG/ALCOHOL AND/OR PARAPHERNALIA on the premises.
• Taking or possessing prescription drugs that are prescribed to someone else. • Vandalism or other deliberate abuse of house property. • Sexual harassment to residents, vendors, staff, or others. • Violating the no-smoking policy.
• Leaving after curfew without permission.
• Illegal activities of any kind.
• Violence or threats of violence.
• Weapons possession.
• Failure to sign in/out when entering or leaving the residence. This may result in a written client warning or discharge from the program as needed.
• Refusing to allow a search of personal belongings, room, or person.

In addition, clients are required to maintain an appropriate noise level. Loud noises of any kind are prohibited; please keep noises to a minimum. The first offense will result in a verbal warning and will be documented in the client's record. Repeated violations may result in discharge from the program. -116-
323

These causes for termination are not an exhaustive list. Stephouse Management reserves the right to consider all circumstances, behaviors, issues, etc., for appropriate action. All terminations are up to the staff’s discretion.

Once a client is discharged, they are not allowed to return to the facility except to retrieve personal belongings. Arrangements to retrieve belongings should be made in advance with Stephouse Recovery staff.

RECORD RETENTION POLICY
Following a discharge, Stephouse Recovery shall retain all participant, client, and patient medical records for ten (10) years, except non-emancipated minors for whom records must be kept for at least one (1) year after such children have reached the age of eighteen (18) years, or for ten (10) years after the last date of service, whichever is longer. This information will also include dates of the client's entry and completion or termination from the facility, including the circumstances of their discharge.

DENIED ADMISSION POLICY
If a client is deemed to need a higher level of care, Stephouse Recovery has the discretion not to accept the client into the program and will refer the client back to OCHCA.

A client can be denied admission by Stephouse Recovery for felonious sex crimes, arson, or other violent felonies.

If a client has a positive drug test at admission, Stephouse Recovery has the discretion to not accept the client into the program and will refer the client back to OCHCA.

Stephouse Recovery complies with all State and Local laws and penal codes regarding registered sex offenders. A referral may be denied admission if the offender does not meet the legal requirements.

ALTERNATIVE REFERRAL POLICY
In the event of admission denial, the Stephouse Recovery or designee will provide referrals to facilities or services appropriate to the client’s presenting problems. The original referral form will be faxed back to OCHA notifying them of the admission denial.

CLIENT ELIGIBILITY
Admission to Stephouse Recovery is open to AB 109 offenders with substance use disorders who were released either on PCS (Post-Release Community Supervision) or on SR (Supervised Release) and who have no available housing. You must be an adult 18 and over and be referred by the Orange County Health Care Agency. The AB 109 Sober Living Services is up to a four (4) month program.

Stephouse Recovery sober living has a policy that will not discriminate in provision of services on the basis of ethnic group identification, religion, age, sex, sexual preference, race, disability pursuant to the Title IV of the Civil Rights Act of 1964 (Section 20000d, Title 42, United States Code); Section 11135 of California Government Code; and for recipients of financial assistance of the Rehabilitation Act of 1973 (Section 794. Title 29, United States Code); and Chapter 6 (Commencing with Section 10800) Division 4, Title 9 of the California Code of Regulations in accordance with all state and federal laws and regulations.

The program will provide clients with shared, safe, comfortable, and healthful accommodation.

Assurance of provision and recognition of personal rights and the right to confidentiality as provided for in Title 42, Section 2.1 through 2.67-1, Code of Federal Regulations, effective August 1, 1975.

CLIENT REQUIREMENTS
In order to remain in good standing at Stephouse Recovery, all clients must…… • Participate in structured daily activities such as house cleaning and basic household operations.
• Agree to follow StepHouse Recovery Center's Signing In/Out Policy . -117-
324

• Agree to follow StepHouse Recovery Center's House Rules. • Agree to follow StepHouse Recovery Center's Schedule Policy . • Agree to follow StepHouse Recovery Center's Transportation Policy . • Agree to follow StepHouse Recovery Center's Food Policy. • Agree to adhere to StepHouse Recovery Center's Drug/Alcohol Screening Policy. • Agree to follow StepHouse Recovery Center's Meetings Policy . • Agree to follow StepHouse Recovery Center's Authority Policy. • Agree to follow StepHouse Recovery Center's Non-Smoking Policy . • Agree to follow StepHouse Recovery Center's Good Neighbor Policy. • Agree to follow StepHouse Recovery Center's Medication Policy . • Agree to follow StepHouse Recovery Center's Visitation Policy .

*Note: These policies are outlined in the AB 109 Sober Living Services Participant Handbook

THE FOLLOWING RELATES TO SOBRIETY, CONDUCT , AND RESPONSIBILITIES WHILE AT A STEPHOUSE RECOVERY RESIDENCE:
• Clients must maintain total abstinence from any mind/mood altering chemicals, alcohol, and/or drug.
• No paraphernalia (syringes, papers, pipes, spoons, etc.) associated with drugs on premises. • NO EXCEPTIONS Cough syrup with alcohol content is prohibited for client safety and sobriety. • Abide by the curfew for clients, w h i c h is 10:00 P .M weekdays and 11:00 P .M weeknights and holidays. All clients must follow curfews unless other arrangements have been made in advance with management.
• Take directions from all staff at the facility.
• Overnight passes may be given to clients after they become eligible. • Clients are to sign in/sign out when leaving the facility. • All clients are subject to random drug and alcohol screens. • Client must notify staff of any communicable disease.

STEPHOUSE RECOVERY’S POLICIES AND PROCEDURES
The following policies and procedures are shared with the client at intake

AUTHORITY POLICY

StepHouse Recovery shall recognize the authority of the Orange County Probation Department (OCPD) as officers of the court and shall extend cooperation to OCPD within the constraints of state and federal laws and regulations.

StepHouse Recovery shall operate in accordance with Local, State, and Federal laws and regulations.

StepHouse Recovery has an open -door policy with law enforcement, probation/parole, and court services programs. All clients agree to be respectful to all.

CLEANING POLICY

Be considerate to others. Practice good hygiene by showering regularly, washing clothes and bedding regularly, and keeping personal living areas clean and orderly.

Clean up after yourself; especially after using the shared common areas (bathroom, living room, patio, yards, garage areas, kitchen, fridges, etc.). All common areas in housing are to be shared and treated with respect and cleanliness.

-118-
325

Cleaning supplies are provided to the facilities. Mandatory cleaning days will be scheduled by staff biweekly on Sundays.

CLIENT CONFIDENTIALITY POLICY

I shall respect and maintain the confidentiality of all discussions between staff and other clients in connection with group meetings where clients share personal information.

I understand that I am legally prohibited from posting or sharing pictures, videos, or information about other clients, discussions, or activities online in any format (including, but not limited to email, websites, message boards, blogs, and social networking platforms).

I understand that these are the conditions of my admission to StepHouse Recovery. Any breach of the Client Confidentiality Agreement may result in immediate discharge from StepHouse Recovery.

I further understand that my personal file may be audited by StepHouse Recovery’s authorized personnel for the purpose of monitoring quality, performance, and compliance. All information will be kept confidential and in accordance with the Federal Confidentiality Regulations.

CLIENT SIGN-IN/OUT POLICY – CLIENT SCHEDULES

All clients must sign in/out when entering or leaving the residence. Failure to do so will result in a write-up, blackout, or discharge from the program as needed.

StepHouse Recovery shall provide logs for all clients that will include the following information:

✔ Client name and signature when leaving and signature again when returning ✔ Date and time leaving the Recovery Residence facility ✔ Estimated time of return to the facility
✔ Location and telephone number where the client may be reached.

StepHouse Recovery shall also receive a schedule from the client for treatment, work, school, or other activities. The client shall be required to notify StepHouse Recovery staff of any change to their schedule. The schedule is maintained on a calendar monitored by staff at each home.

OUTPATIENT PARTICIPATION POLICY

Clients who are required to participate in either an Orange County approved outpatient treatment program and/or a Day Reporting Center (DRC) must comply or be discharged. Exceptions to the mandatory participation must be approved by the county of Orange and provided to Stephouse Recovery in writing.

OCHCA requires that all clients attend outpatient meetings ((SMART recovery, 12-Step program, etc.). Staff will collect client meeting logs weekly on Sunday evenings. If the client is unavailable on Sunday evening, they must arrange for staff to receive the logs before Sunday evening. Clients are required to complete meeting logs as proof of attendance, which must be signed by the client’s meeting counselor or group leader. Periodically Stephouse Recovery will contact the program where the client attends meetings, requesting attendance verification. Therefore, at the time of intake, Stephouse Recovery requires a signed release of patient information form permitting the outpatient meeting agency to share information with Stephouse.

-119-
326

CURFEW/OVERNIGHT POLICY

Clients must be back by curfew:

Weekdays- 10:00 PM.

Weekends and Holidays- 12:00 AM.

All clients must follow curfews unless other arrangements have been made in advance with management (i.e., overnight pass, working past curfew, etc.).

Clients must be with StepHouse Recovery for a minimum of 30 days and have no behavioral issues to qualify for an overnight pass. Approval must be requested in writing to the StepHouse office at least 48 hours in advance and is up to the staff’s discretion. Clients may obtain overnight passes for a maximum of two (2) weekends or four (4) nights per month.

Leaving the house after curfew hours may be grounds for termination from the program. Curfew violators will be placed on a behavioral contract and required to pass a drug test prior to returning to housing.

The client agrees that they are subject to discharge if they leave StepHouse Recovery overnight without a pass.

DISCHARGE/TERMINATION POLICY

Client has completed the program when they have used their maximum allotted time or reached their goals for transition. Staff will complete a Discharge Form to document the circumstances of the client leaving sober living. Clients are not required to sign the discharge form.

Failure to comply with StepHouse policies signed at intake may result in a written warning or administrative termination from the program. Infractions will be documented in the client's record, and a behavioral contract will accompany the written warning. The client's Probation/Parole Officer will be notified of termination when applicable. In addition, there may be circumstances where law enforcement may be called, and legal action taken against the client.

If a client discharges or is terminated from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity. Clients terminated from the program must be sober before they enter StepHouse property.

Each client should receive a housing resource guide upon discharge. Stephouse Recovery will assist discharged clients in securing safe, temporary shelter in the event of immediate discharge. Residents who have relapsed and under the influence may be transported to Be Well Orange Campus or College Hospital Costa Mesa.

Cause for Termination from the Program
● If a client needs a higher level of care than provided at StepHouse Recovery. The client will be referred to OCHCA.
● The client has left the residence and no contact has been made after three (3) days (unless other arrangements have been made)
● Theft of any kind. Theft may also result in legal proceedings. ● Threatening or dangerous behavior.
● Behavior that is not conducive to recovery. Unacceptable behavior includes but is not limited to sexual activity on the premises, fighting, stealing, lying, etc. ● Confrontational behavior, harassment, and being a constant nuisance to other clients or staff. ● Continuous poor behavior and attitude toward staff or other clients. -120-
327

● Positive results/refusal of urinalysis, breathalyzer, or any other drug test. Refusal to test is equivalent to a POSITIVE test.
● DRUG/ALCOHOL AND/OR PARAPHERNALIA on the premises.
● Taking or possessing prescription drugs that are prescribed to someone else. ● Vandalism or other deliberate abuse of house property. ● Sexual harassment to residents, vendors, staff, or others. ● Violating the no-smoking policy.
● Leaving after curfew without permission.
● Illegal activities of any kind.
● Violence or threats of violence.
● Weapons possession.
● Failure to sign in/out when entering or leaving the residence. This may result in a written client warning or discharge from the program as needed.
● Refusing to allow a search of personal belongings, room, or person.

In addition, clients are required to maintain an appropriate noise level. Loud noises of any kind are prohibited; please keep noises to a minimum. The first offense will result in a verbal warning and will be documented in the client's record. Repeated violations may result in discharge from the program.

These causes for termination are not an exhaustive list. Stephouse Management reserves the right to consider all circumstances, behaviors, issues, etc., for appropriate action. All terminations are up to the staff’s discretion.

Once a client is discharged, they are not allowed to return to the facility except to retrieve personal belongings. Arrangements to retrieve belongings should be made in advance with StepHouse Recovery staff.

DISCRETION POLICY

The client understands that they are entering independent sober living. Privacy is limited and space is shared. Stephouse Recovery staff will conduct bed checks and will be entering bedrooms regularly.

StepHouse Recovery staff reserves the right to interpret and apply the rules to meet the needs of each client effectively and within reason. Staff will use their best judgment with events and circumstances as they occur. Stephouse Management reserves the right to change or make additions to StepHouse Recovery Policies and Procedures at any time. It is within StepHouse Recovery’s discretion to make amendments or modifications to any of the following:
● Rules and Regulations
● Policies
● Room Assignments
● Food Requirements
● Schedules
● Supervision
● Chore Assignments
● Testing
● Discharge
Clients who violate any StepHouse Recovery Policies or Procedures agree to the decisions and consequences deemed necessary by the staff.

DRUG/ALCOHOL POLICY

Alcohol, illegal drugs, or non -prescribed drug use, distribution, and/or possession are strictly prohibited.

Cough syrup or mouthwash with alcohol content is prohibited. A client must have total abstinence from any mind/mood-altering chemicals and/or drugs.

-121-
328

No paraphernalia (syringes, papers, pipes, spoons, etc.) associated with drugs on-premises.

No association with any active drug or alcohol offender(s), nor frequent places where drugs are sold, used, or are accessible.

Any infraction may result in the client being put on a standout*, behavioral contract, or discharged. (*Standout- A specified number of days when a client is banned from the house).

SUPPORT STAFF

Staff is responsible for the supervision of all clients residing in the facility. Staff shall be responsible for ensuring the safety of the buildings and grounds and maintaining compliance of clients and staff with facility rules. Whenever StepHouse Recovery Staff is not present at the facility, a designated facility staff person shall be on-call to respond and arrive at the facility.

StepHouse Recovery shall post the contact telephone number of designated on-call staff.

The staff will randomly be on sight at the facility to perform UAs/breathalyzers and conduct random searches of the client’s rooms, personal property, and belongings.

EMPLOYMENT/SCHOOL/VOLUNTEERING POLICY

StepHouse Recovery requires all clients to be employed, seeking employment, attending school or volunteering during the duration of their program. Verification of employment, interviews, applications, or volunteer hours is required weekly. Proof of school enrollment is also required. Failure to comply with this policy can result in discharge from the program.

GOOD NEIGHBOR POLICY

A top priority for StepHouse Recovery is to ensure that the occupants of our homes are considerate of the neighbors and respectful of the neighborhoods in which they reside. The following protocol should always be followed by clients and staff to ensure that the community and StepHouse Recovery maintain a healthy relationship.

StepHouse Recovery provides contact information of our managerial staff to the bordering neighbors (located behind, to the left, to the right, as well as across the street of each recovery residence). We provide bordering neighbors with an "Introductory Letter" informing them of our presence in the community and our mission and efforts to help those in recovery make their fresh start in a safe and sober environment. "Introductory Letters" can be requested from staff.

Should a neighbor contact a house manager with a complaint regarding our home or its occupants, it is the responsibility of the house manager to pass this information to Management immediately, failure to do so will result in a written warning. Management will respond to the complaint within 12 hours to let the concerned neighbor know that the complaint was received, and we will investigate and address the issue as the situation warrants.

To maintain a clean presentation of the house and grounds, gardening will take place bi-weekly by a paid landscaping company. Management will also conduct outside maintenance as needed. Clients may not leave personal belongings, bicycles, trash, or other disposed of items at the front of the house. A monthly checkup by the Director will be made, and the current condition of the home and its grounds will be documented.

Clients are required to abide by the StepHouse Recovery House Rules. Clients are expected to maintain an appropriate noise level and always behave appropriately.

Smoking and vaping are permitted only in designated areas (posted) as outlined in the house rules.

Cigarettes are to be disposed of in an appropriate manner. Clients are expected to maintain a clean environment and never litter. Staff and clients are responsible for setting trash cans out on the curb and bringing them in on the assigned trash day.
-122-
329

Contact Information:

Stephouse Recovery
(888) 923-7623
[email protected]
Orange County Healthcare Agency
Monica Curran
[email protected]
(714) 834-2488

or
Monica Cabral
[email protected]
(714) 834-2027

HOUSE RULES POLICY

Payments and tenure (Private Pay only)
● StepHouse Recovery requires a one-month commitment to housing. Clients may stay for as long as they feel they need structure and accountability in their life. ● Clients may move out of the housing at any time without a refund. ● There are NO REFUNDS.
● Payment is due on the first day of each month.

Facility
● Accept the facility “as is”.
● The client understands they reside in a congregate housing situation, not an exclusive unit or space. ● Become familiarized with escape routes, safe gathering locations, and the need for a safe location headcount.
● It is encouraged for clients not to bring anything of high value to the facility or to keep it on their person otherwise. StepHouse Recovery is not responsible for lost, stolen, or damaged property.

Clients bringing items of monetary or sentimental value to the facility are doing so at their own risk. ● No personal refrigerators, microwaves, coffee pots, heaters, furniture, candles, or excessive property is allowed.
● Moving rooms:
○ Clients may request to move rooms but are only allowed to move with permission of staff ■ Decisions will be based on seniority, behavioral assessment, and availability ○ Client must clean room previously occupied before moving. ○ Staff may need to move clients based on necessity. Changing a client’s room assignment is at the staff discretion.
● House meetings are scheduled by management on a need -be basis. If the client is unable to attend because of work conflicts, a manager must be notified.
● Laundry detergent/supplies and toiletries are not provided for client use. ● Internet Wi-Fi is provided at each location.

Client Conduct
-123-
330

● No drugs, alcohol, and/or paraphernalia allow on house premises. ● All medications, including over the counter, must be held and dispensed by the clients themselves. ● Do not enter other clients’ rooms. Clients may only enter their own room and are not allowed to enter another client's bedroom.
● Clients are not allowed to fraternize with other clients. ● Do not share rental agreement information with other clients. ● All overnight passes must be requested for approval by Thursday of each week. ● Client agrees that if they leave StepHouse Recovery for an overnight without a "pass" they are subject to discharge. Personal belongings will only be held for seven (7) days (excluding food products) and then discarded or donated to charity.
● NO PETS- Pets of any kind are not permitted.
● Clients are expected to rise in the morning at a reasonable time to ensure they are dressed, bed made, immediate area cleaned, and house chores completed by 11 am daily. ● Assigned chores must be completed daily.
● Before leaving the house, chores must be completed, the bed must be made, and the room must be tidy. If clients have school/work/volunteering before the "11 am Chore Check", they must complete all household responsibilities before leaving.
● All clients must wear appropriate attire when in shared areas of the facility and/or in the presence of other residents and staff. Appropriate attire includes shirts and pants/shorts, and dresses. ● CURFEW, clients must be in the house by 10 PM on weekdays and 11 PM on weekends and holidays. ● Be considerate to others. Keep music and television audio so as not to disturb other clients. Pick up after yourself, leaving microwaves, common areas, and bathrooms clean for the next person. ● Shower daily, maintain personal hygiene, and wash your clothes regularly. ● Bedding must be washed weekly.
● NO SMOKING/VAPING inside of or in front of the house. SMOKING/VAPING is only permitted in designated areas.
● DO NOT LEAVE BURNING CIGARETTES UNATTENDED.
● Empty ashtrays as needed.
● Clients agree not to have any contact with ex-clients that have been discharged due to relapse or behavioral infractions.
● NO STEALING! Respect others' property. Theft is cause for immediate discharge and may result in legal proceedings.
● DO NOT TOUCH THE MAIL. The operations coordinator is the only person allowed to bring the mail in from the mailbox.
● All clients must attend at least five 12-Step meetings and scheduled house solutions meetings. ● Threatening or dangerous behavior and/or deliberate abuse of house property will be cause for immediate discharge and may result in legal proceedings. ● Sexual harassment is strictly prohibited and will result in automatic discharge from the program.

The client’s Parole/Probation Officer and law enforcement will be notified. ● Clients must notify staff of any communicable disease. ● If you see something, say something. The purpose of sober living is to provide a supportive environment free from alcohol and drugs. Clients play a vital role in keeping each other safe and sober .

Staff should be informed of threatening or dangerous behaviors of others, drug or alcohol use, housemates’ lack of participation in house chores, etc. ● In the event of an emergency dial 911. Staff should also immediately be notified.

Daily Structured Activities
Clients are required to engage in daily activities that should be discussed with their outpatient provider.

Clients will be assigned household duties, including but not limited to house cleaning and basic household operations. Assigned duties must be completed daily.
-124-
331

The client agrees to work on a program of recovery to better their lives in the form of their choosing.

StepHouse Recovery highly recommends attending celebrate recovery, parenting classes, life skill classes, private counseling, and many other community-based organizations to better themselves.

The client agrees and understands that a condition for being at StepHouse Recovery is to be gainfully employed, actively seeking work, in treatment, attending school, or other activities to enhance the client’s future. Staff will provide resources, assistance, and support for clients to find work, register for school, attend appropriate self-help program meetings, and volunteer in the community.

MAIL AND PACKAGE DELIVERY POLICY

StepHouse Recovery and staff are not responsible nor liable for mail or packages that clients choose to have delivered to a recovery residence. Do not open any packages not addressed to you.

MEALS/FOOD POLICY

StepHouse Recovery will provide food during the week. It is the client’s decision on whether they wish to consume the food provided.

Clients are not allowed to keep any food in their rooms. All food must be kept in the kitchen or designated pantry space. Only water bottles are allowed in clients’ rooms.

Clients are required to clean up after themselves. Personal items, laundry, towels, and the like should not be left in the common areas of the house. Do not leave dishes in the sink or any other areas of the house, including rooms. Clean and stow dishes, utensils, and cookware in their allocated spaces. Clean the counters and stove after use. Clean the microwave as needed, especially if you spill something.

Food logs must be filled out on Sunday for the week prior.

MOTOR VEHICLE (INCL. MOTORCYCLE) POLICY

● Clients driving a motor vehicle or motorcycle must possess and provide copies of a current California Driver's License, proof of insurance, and registration. ● Clients are not allowed to ride in the car of another client or allow another client to drive their car. ● All vehicles must be insured and properly registered, and the client must have a valid driver's license. ● Auto repair on the premises is not permitted without prior management permission. ● Clients are allowed only the vehicle they are currently using, no additional vehicles are permitted.

Vehicles are a privilege that may be revoked at any time due to non-compliance with program rules and expectations.

NONDISCRIMINATION POLICY

StepHouse Recovery does not to discriminate on the basis of race, color, national origin, religion, sex, or mental or physical disabilities, pursuant to Title VI of the Civil Rights Act of 1964 (Section 2000d, Title 42, United States Code), the Rehabilitation Act of 1973 (Section 794, Title 29, United States Code); the Americans with Disabilities Act of 1990 (Section 12132, Title 42, United States Code); Section 11135 of the California Government Code; and Chapter 6 (commencing with Section 10800), -125-
332

Division 4, Title 9 of the California Code of Regulations.

Any person who believes they or someone else has been subjected to discrimination based on race, national origin, sex, age, or disability may file a grievance under the following procedure. It is against the law for StepHouse Recovery to retaliate against anyone who opposes discrimination, files a grievance, or participates in the investigation of a grievance. This policy applies to employees, contractors, vendors, clients, and all who interact with Stephouse Recovery.

OPIOID OVERDOSE EMERGENCY TREATMENT POLICY

StepHouse Recovery shall have available at each program site, at minimum, one Naloxone (Narcan) Nasal Spray for the treatment of known or suspected opioid overdose.

In case of suspected opioid overdose, staff may administer Naloxone (Narcan) Nasal Spray and then call 911.

Clients will also be shown how to administer Naloxone.

**Note: Naloxone is the generic name of Narcan. Narcan is the brand name of Naloxone.

PROPERTY DAMAGE POLICY

The client agrees not to damage the facility, which includes the outside perimeter.

Client agrees not to damage any property belonging to StepHouse Recovery which includes but is not limited to transport vehicles, appliances, and furniture.

The client agrees to return any items to the facility before discharge, including linens, blankets, and towels.

The client agrees if there is damage that cannot reasonably be traced back to a particular person, the cost of the damage will be shared equally among all the housemates.

The client agrees to be financially responsible for all damage caused by them in any of the StepHouse Recovery facilities and transport vehicles.

DRUG & ALCOHOL SCREENING POLICY
Alcohol, illegal drug, or non-prescribed drug use or possession by clients or staff is strictly prohibited. Cough syrup with alcohol content is prohibited for client safety and sobriety.

ALL CLIENTS MAY BE SUBJECT TO RANDOM DRUG SCREENS, BREATHAL YZER TESTS AND ROOM SEARCHES.

● StepHouse shall perform random drug and/or alcohol testing on clients suspected of using substances AND at a minimum of one (1) time per month.
● All urine specimen collection shall be observed by same-sex staff. The result of the screening will be documented in the client's record.
● Clients are not allowed to open tests by themselves. Staff will open the tests and then give them to clients.
● If a test is unclear or possible contamination is suspected, the client will have to re-test within 1.5 hours after the first test was administered.

If a client refuses a search or test or drugs or alcohol are found or detected, StepHouse Recovery will notify the client's probation officer (within one business day), and discharge from the program may result. Refusal to test is equivalent to a POSITIVE test. ** REMINDER**

UNDER NO CIRCUMSTANCES SHALL A CLIENT WHO IS UNDER THE INFLUENCE BE ALLOWED IN THE HOUSE.

If a client is found to be under the influence, management shall pack the client's property for retrieval at a later time. When the client is no longer under the influence, he can arrange to -126-
333

retrieve personal property with staff.

The client’s property will be held for seven (7) days before StepHouse Recovery donates the items to charity.

SMOKING POLICY
Smoking, (including electronic cigarettes) is prohibited within the facilities; the use of tobacco and tobacco products on facility premises is allowed in the backyard or parking lot.

1. Smoking and/or vaping is prohibited in any enclosed area of StepHouse Recovery's facilities.

2. Cigarettes must be completely extinguished in receptacles or metal containers to reduce fire risk.

3. Any client violating the no-smoking policy may be discharged from the program.

4. A self-audit of the no-smoking policy will be implemented, and any violation should be reported by staff in an incident report. A monthly Health and Safety audit will be conducted to see if the no- smoking policy is being adhered to.
-NO SMOKING/VAPING INSIDE OF OR IN FRONT OF THE HOUSE. SMOKING/VAPING is only permitted in designated areas.

-DO NOT LEAVE BURNING CIGARETTES UNATTENDED.

TRANSGENDER & GENDER IDENTITY POLICY

StepHouse Recovery will not discriminate against ethnic group identification, religion, age, gender identification, sexual preferences, race, or disability. StepHouse Recovery will make every effort to ensure that all needs of transgender and non-cisgender persons are accommodated. We are committed to our clients feeling safe, supported, and comfortable.

StepHouse Recovery is committed to maintaining client information in strict confidence. No client information is ever shared with other clients, including gender orientation.

Transgender and non-cisgender clients are subject to the same drug/alcohol screening policy. A staff of the same gender the client has identified with will be in the room to observe urine specimen collection.

GENDER-ORIENTED FACILITY POLICY

StepHouse Recovery will accommodate clients according to their gender identity. Those clients identifying as male, and female will be housed in separate residences accordingly.

TRANSPORTATION POLICY
StepHouse Recovery shall arrange for transportation via bus vouchers, as necessary. StepHouse Recovery will also provide information regarding public transportation, how to obtain a bus pass, bus schedules, etc.

If the client owns and operates a vehicle, StepHouse Recovery shall do its best to accommodate the vehicle in accordance with federal, state, and county rules and regulations. StepHouse Recovery is not responsible for transportation via clients’ cars. Choosing to ride in the car of another client or allow another client to drive your car is strongly discouraged and is done at your own risk. Clients are not permitted to drive or operate StepHouse Recovery vehicles.

Clients can also use the service Veyo for non-emergency medical transportation. This service can be used for doctor’s appointments, meetings, therapy, etc. Call the number 1-833-648-7528 and mention that you are a client at StepHouse Recovery.

-127-
334

All drivers of vehicles who are picking up or dropping off Stephouse Recovery clients must drive currently registered vehicles and hold a current driver’s license. Drivers may not impede residential traffic or block driveways and must obey all traffic laws.

VISITATION POLICY

StepHouse Recovery does not allow any visitation/visitors in any of the facilities. Failure to comply will result in discharge from the program and P .O. may be notified.

Please note that probation officers may visit any of the residences at any time and will be granted entrance.

ANY INFRACTION MAY RESULT IN BEING WRITTEN UP or TERMINATION FROM THE PROGRAM. P .O. WILL BE NOTIFIED.

NO RESPONSIBILITY CLAUSE

Stephouse Recovery assumes no responsibility for the client’s personal property. Stephouse is released from all liability for any loss or damage to any and all personal property. Personal property includes but is not limited to vehicles, valuables, money , jewelry, eyeglasses, hearing aids, documents, electronic devices (i.e., computers, game consoles, and tablets), and mobile devices. Clients are advised to minimize the personal property brought into residential recovery homes. All items brought to a Stephouse Recovery home are done at the client’s own risk. Locks are not permitted on bedroom doors, and there are no exceptions to this rule.

The client agrees to hold harmless The StepHouse Recovery, Inc, the property owners, and any and all Service Providers/Contractors against any and all claims, demands, suits, or loss.

-128-
335

ADDENDUM A

ORANGE COUNTY

SOCIAL MEDIA USE

POLICY & PROCEDURE
MAY 18, 2010
Added to the PDF version

-129-
336

PURPOSE SOCIAL MEDIA USE
County of Orange
County Executive Office
Information Technology

County Social Media
Use Policy and
Procedure

-130-
337
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 1 of 14

Subject:

County Social Media Use Policy
Number:

SM‐001
Approved By:

Orange County Board of Supervisors on May 18, 2010
Effective:  May 18, 2010
Last Revision:  May 18, 2010
Revision No.:      1.0

I. PURPOSE
The  County  of  Orange  has  a  business  need  to  augment  traditional  communication methods with the use of social media channels.  This  need primarily stems from public demand  and  the  rapid  growth  of  social  media  (aka:  Web  2.0)  use  by  other  local,  state and  federal  government  entities  as  an  indication  that  social  media  can  be  used effectively  to  enhance  constituent  communications.  The  use  of  social  media  presents opportunity  and  risk  to  in
dividual  County  agencies  and  departments,  as  well  as  the County as a whole.  In  general, the County supports the use of social media technology to  enhance  communication,  collaboration  and  information  exchange  to  meet  business mission and
goals.

This  document  establishes  countywide  social  media  use  policies,  protocols  and procedures  intended  to  mitigate  associated  risks  from  use  of  this  technology  where possible. Shall the County change its direction on social media use, this policy will be revised and agency/department social media activity shall be adjusted accordingly.

II. APPLICABILITY
This  policy  applies  to  all  County  of  Orange  employees  and  approved  volunteers, consultants,  service  providers  and  contractors  performing  business  on  behalf  of  a County agency/department.

Agencies/Departments  using  social  media  technology  prior  to  the  implementation  of the  County’s  Social  Media  Use  Policy  shall  achieve  full  policy  compliance  within  90 days of the effective date of this document.
-131-
338
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 2 of 14

III. RESPONSIBILITY
The County’s Social Media Policy was approved by the County Board of Supervisors on May 18, 2010.

The  County  Executive  Officer,  or  his  designee,  is  responsible  for  facilitating  the County’s Social Media Policy in compliance with established Board rules and protocols.

This includes responsibility to audit agency/department use of social media and enforce policy compliance.

Within  the  terms  of  this  policy,  Department  Heads  have  authority  to determine  and
establish social media activity at the agency/department program level.

IV. POLICY

1. Agency/Department  use  of  social  media  technology  shall  conform  to  the  policies, protocols and procedures contained, or referenced, herein.

2. An  agency/department’s  decision  to  embrace  social  media  shall  be  a  risk‐based business  decision  approved  by  the  Department  Head  and  supported  by  a  strong business  case  that  considers  the  agency/department’s  mission  and  goals,  audien ce, legal risks, technical capabilities and potential benefits.

3. Access  to  social  media  networks  from  within  the  County’s  IT  infrastructure  is limited  to  individuals  performing  official  County  business  and  to agencies/departments with sufficient information and technology security controls.

4. Department Heads, or designees, are responsible for determining who is authorized to  use  social  media  on  behalf  of  the  agency/department,  and  for  designating appropriate access
levels.

5. Agencies/Departments  shall  only  utilize  County  approved  social  media  networks for hosting official County social media sites.

6. County  agency/department  social  media  sites  shall  be  created  and  maintained  in accordance  with  County  social  network  usage  standards  and  with  identifiable characteristics of an official County site.
-132-
339
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 3 of 14

7. Agencies/Departments  are  responsible  for  establishing  and  maintaining  content posted  to  their  social  media  sites  and  shall  have  measures  in  effect  to  prevent inappropriate or technically harmful information and links.

8. The  same  standards,  principles  and  guidelines  that  apply  to  County  of  Orange employees  in  the  performance  of  their  assigned  duties  apply  to  employee  social media technology use.

9. Agency/Department use of social media shall be documented and maintained in an easily  accessible  form
at  that  tracks  account  information  and  preserves  items  that may  be  considered  a  record  subject  to  disclosure  under  the  California’s  Public Records Act or required to be retained pursuant to the Government  Code.

10. Agency/Department  social  media  sites  shall  be  monitored  regularly  and  prompt corrective action shall be taken when an issue arises that places, or has potential to place, the County at risk.

V. PROCEDURES
Policy 1 County Social Media Technology Use
Agency/department  use  of  social  media  technology  shall  conform  to  the  policies, protocols and procedures contained, or referenced, herein.

1.1. Comply  with  all  applicable  federal,  state,  and  county  laws,  regulations  and policies  including,  but  may  not  be  limited  to,  copyright,  records  retention, California Public Records Act, First Amendment, privacy laws, employment related  laws  and  County  e stablished  Workforce,  Information  and Technology, eGovernment and Social Media usage policies.

1.2. Be  familiar  and  carry‐out  social  media  activity  in  accordance  with  the County’s Social Media Participation Guidelines, where applicable.

1.3. Establish and utilize social media in accordance with the County’s Approved Social Media Networks and Usage Standards.
-133-
340
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 4 of 14 Policy 2 Agency/Department Decision to Embrace Social Media An agency/department’s decision to embrace social media shall be a risk‐based business decision  approved  by  the  Department  Head  and  supported  by  a  strong  business  case that  considers  the  agency/department’s  mission  and  goals,  audience,  legal  risks, technical  capabilities  and  potential  benefits.  Agencies/Departments   who  choose  to utilize social media shall:

2.1. Have a strong understanding of the risks associated with using social media in order
to make an effective business decision.

2.2. Engage  internal  Agency/Department  IT,  Risk  Management  and  County Counsel  Representatives  to  assess  the  risks  of  utilizing  a  specific  County approved  social  networking  site  in  comparison  with  the  business opportunities expected.

2.3. Establish a well thought out social media strategy.

2.4. Develop  and  maintain  agency/department  specific  social  media  policies  and procedures.  HR shall be consulted to
provide advisory on labor impacts.

2.5. Require authorized staff to complete social media security training.

2.6. Have  security  controls  in  place  to  protect  County  Information  and Technology assets.

2.7. Designate  a
Social  Media  Coordinator  responsible  for  overseeing  the agency/department’s social media activity and policy compliance.

Policy 3 Access to Social Media Networks
Access to social media networks from within the County’s IT infrastructure is limited to individuals  performing  official  County  business  and  to  agencies/departments  with sufficient Information and Technology security controls.

3.1. County  computers,  laptops  and  mobile  devices  used  to  access  social  media sites  shall  have  up‐to‐date  software  to  protect  against  destructive  technical incidents,  including  but  may  not  be  limited  to,  cyber,  virus  and spyware/adware
attacks.
-134-
341
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 5 of 14

3.2. CEO  IT  and  Agency/Department  IT  shall  make  a  diligent  effort  to  provide authorized  users  access  to  social  media  networks  from  within agency/department work sites.

3.3. County  hosted  websites  shall  not  contain  automatic  feeds  to  uncensored social media site content.  Prior  to approving content for display on County websites,  agencies/departments  shall  have  monitoring  protocols  in  place  to ensure  content  and  links  are  appropriate  and  free  from  harmful  technical attacks.

Policy
4 Authorized Use
Department Heads, or designees, are responsible for determining who is authorized to use  social media on behalf of the  agency/department, and for designating appropriate access levels.

4.1. Social  media  network  access  shall  be  limited  only  to  those  with  a  clear business purpose to use the forum.

4.2. Appropriate access levels include identifying what sites, or type of sites, the individual  is  approved  to  use,  as  well  as  defining  capability:  publish,  edit, comment or view only.

4.3. Only  Official  Spokespersons,  Public  Information  Officers  and  select individuals shall have permission to create, publish or comment on behalf of a
County Agency/Department.

4.4. Authorized  users  shall  be  provided  a  copy  of  the  County’s  social  media policy and are required to acknowledge the
ir understanding and acceptance
via wet signature.

Policy 5 Approved Social Media Networks
Agencies/Departments  shall  only  utilize  County  approved  social  media  networks  for hosting official County social media sites.

5.1. Social  media  networks  under  consideration  will  be  reviewed  and  approved by  the  County  Executive  Office  and  CEO  IT  with  consultation  from  County Counsel, HR and Risk Management when appropriate.
-135-
342
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 6 of 14

5.2. For each approved social media network, usage standards will be developed to  optimize  government  use  of  the  site  in  correlation  with  the  County’s overall business mission and County Social Media Use Policy.

5.3. CEO  IT  is  responsible  for  maintaining  the  list  of  approved  social  media networks and site related usage standards.

5.4. Social media networks on the approved list shall be reviewed bi‐annually for changes to
terms of use agreements and/or new/expired offerings.

5.5. An agency/department may request review and approval of additional social media networks as needed.

Policy 6 Official County Social Media Sites
County  agency/department  social  media  sites  shall  be  created  and  maintained  in accordance  with  County  social  network  usage  standards  and  with  identifiable characteristics of an official County site.

6.1. Social media network usage standards are accessible from CEO IT

6.2. County  social  media  network  accounts  shall  be  created  using  an  official County email account, when possible.

6.3. Sites shall contain visible elements that ident
ify them as an official County of
Orange  site.  Among  other  items,  this  includes  displaying  official  County seals,  agency/department  brands,  contact  information  and  a  link  to agency/department websites.

6.4. County  social  media  sites  shall  display,  or  provide  a  link  to,  the  County’s social media
disclaimer and any applicable eGovernment policies.

Policy 7 Site Content
Agencies/Departments are responsible for establishing and maintaining content posted to their social media sites and shall have measures in effect to prevent inappropriate or technically harmful information and links.

7.1. As  is  the  case  for  County  of  Orange  web  sites,  agencies/departments  are responsible for the content and upkeep of their social media sites. -136-
343
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 7 of 14

7.2. County  websites  shall  remain  the  primary  and  predominant  source  for Internet information.

7.3. Social  media  content  shall  fully  comply  with  the  County’s  eGovernment Appropriateness of Content Policy.

7.4. Information and comments shared through social media channels shall fully comply  with  agency/department  Communications  Policies  and  Procedures and shall not disclose confidential or proprietary information.

7.5. Sharing or posting content owned by others shall be performed in accordance with  copyr
ight,  fair  use  and  established  laws  pertaining  to  materials  owned by  others.  This   includes,  but  is  not  limited  to,  quotes,  images,  documents, links, etc.

7.6. Use of sites that are not Section 508 web accessible shall contain “simple” text links  to  iden
tical  material  on  a  compliant  website  or  other  social  media network.

7.7. Electronic  information  posted  to  a  social  media  site  by  the  County,  or  a member  of  the  public,  may  be  considered  a  record  subject  to  California’s Public Record Act.

7.8. It is not intended to use social media sites in a  way that guarantees the right to  protected  free  speech.  Each   agency/department  is  responsible  for monitoring  postings,  and  taking  appropriate  action  when  necessary,  to protect  general  site  visitors  from  inappropriate  or  technically  harmful information and links.

7.9. Sites that allow public comment shall inform visitors of the intended purpose of the site and provide a clear statement of the discussio n topic introduced for
public  comment  so  that  the  public  is  aware  of  the  limited  nature  of  the discussion and that inappropriate posts are subject to removal, including but not  limited  to  the  following  types  of  postings  regardless   of  format  (text, video, images, links, documents, etc.):

7.9.1. comments not topically related;

7.9.2. profane language or content;
-137-
344
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 8 of 14

7.9.3. content that promotes, fosters or perpetuates discrimination on the basis  of  race,  creed,  color,  age,  religion,  gender,  marital  status, status with regards to public assistance, national origin, physical or mental disability or sexual orientation;

7.9.4. sexual content or links to sexual content;

7.9.5. solicitations of commerce;

7.9.6. conduct  or  encouragement  of  illegal  activity  or  political involvement;

7.9.7. information that may tend to compromise the safety or security of the public or public systems;

7.9.8. content that violates
a legal ownership interest of any other party.

7.10. Agencies/Departments  choosing  to  allow  posts  from  the  public  on  County social  network  sites,  shall  prominently  display,  or  provide  a  link  to,  the County’s eGovernment Comment Policy.

7.11. Agencies/Departments  choosing  to  use  public  comments  shall  consult  with County  Counsel  to
develop  agency‐  or  department‐specific  disclaimers  to meet  the  County’s  legal  needs.   County  Counsel  may  also  be  consulted  to determine whether to remove comments that violate this policy.

7.12. County  Blogs
shall  be  established  with  moderated  controls,  which  at minimum  require  that  blog  post  (comments)  be  approved  prior  to  blog publishing.

7.12.1. Agencies/Departments  that  choose  to  use  blogs  shall  designate  a moderator  whose  responsibilities  will  include  the  review  of  any comments submitted as part of an online discussion.

7.12.2. Comments  or  posts  that  do  not  comply  with  the  County’s eGovernment  Comment  Policy  or  Appropriateness  of  Content Policy shall not be approved for blog publishing.

-138-
345
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 9 of 14 Policy 8 User Behavior
The  same  standards,  principles  and  guidelines  that  apply  to  County  of  Orange employees in the performance of their assigned duties apply to employee social media technology use.

8.1. County workforce members authorized to use social media technology shall do  so  only  within  the  scope  defined  by  their  respective  agency/department per policy 4 of this document and in compliance with all County Workforce, eGovernment
and IT policies, practices and use agreements.

8.2. It  is  strongly  recommended  that  social  media  use  be  performed  within  the County’s established Social Media Guidelines.

8.3. Authorized  social  network  spokespersons  participating  in  personal  social networking discussions related to County business matters shall indicate that viewpoints are personal
and may not reflect County opinion.

8.4. Authorized  County  social  media  users  shall  complete  social  media  security training.

8.5. Workforce  members  performing  County  social  media  work  beyond  normal work hours shall receive pre‐authorization from the agency/department.

8.6. Employees shall obey all laws, including but not limited to, the Hatch Act of 1939,
when using social media.

Policy 9 Records Management
Agency/Department  use  of  social  media  shall  be  documented  and  maintained  in  an easily accessible format that tracks account information and preserves items that may be considered  a  record  subject  to  disclosure  under  the  California’s  Public  Records  Act  or required to be retained pursuant to the Government Code.

9.1. Agencies/Departments  are  responsible  for  the  creation,  administration  and deactivation of social
media accounts.

9.1.1. Account  password  information  shall  only  be  shared  with authorized staff that has been designated by the Department Head, or her/his designee, to fulfill the role of site account administrator. -139-
346
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 10 of 14

9.1.2. Passwords  shall  conform  to  County  complex  password requirements when permissible.

9.1.3. Account  password  shall  promptly  be  reset  when  an  employee  is removed as an account administrator.

9.2. Agencies/Departments  shall  maintain  a  record  of  social  media  sites  created for County use, including, but may not be limited to:

9.2.1. A log file containing the name of the social media network, account id,  password,  registered  email  address,  date  established, authorizing  representative  and  name  of  person  who  created account  and  agreed  to  the  sites  terms  of  use  agreement and/or
policy.

9.2.2. A  record  of  the  sites  usage  agreement  at  the  time  the  site  was created and any updated versions.

9.2.3. A list of authorized site content author
s and editors.

9.3. Electronic  information  posted  to  a  social  media  site  by  the  County,  or  a member  of  the  public  if  permitted,  may  be  considered  a  record  subject  to California’s Public Record Act.

9.3.1. Any content maintained in a social media format that is related to County  business,  including  a  list  of  subscribers  and  County  or public  posted  communication,  may  be  a  public  record.

Agencies/Departments  shall  have  procedures  in  effect  to preserve
published social media content.

9.3.2. The  Agency/Department  maintaining  the  site  is  responsible  for responding  completely  and  accurately  to  any  pu blic  records request for public records on social media.

9.3.3. Site  content  shall  be  maintained  in  accordance  with  its  respective Records  Retention  Schedule  and  in  accordance  with  County  IT policies and procedures.  If  the content constitutes a public record, it must be disclosed to the public unless an exemption applies. -140-
347
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 11 of 14

9.3.4. Posts  deemed  technically  harmful  or  inappropriate  per  policy  7 shall  be  promptly  documented,  saved  pursuant  to  IT  policies  and procedures regarding record retention and removed.

9.4. Agencies/Departments shall maintain a record of signed social media policy acknowledgement forms for each authorized user.

Policy 10 Site Monitoring

Agency/Department  social  media  sites  shall  be  monitored  regularly  and  prompt corrective  action  shall  be  taken  when  an  issue  arises  that  places,  or  has  potential  to place, the County at risk.

10.1. Agency/Department social media site administrators shall review site activity and content daily for exploitation or misuse.

10.2. Agency/Departments  that  allow  the  public  to  post  comments,  links  or material  directly  onto  their  social  media  sites  shall  have  an  established process,  including  technical
capability  outside  of  the  County’s  network,  to
verify  that  postings  meet  the  rules  established  under  policy  7  of  this document.  Posts   deemed  technically  harmful  or  inappropriate  shall  be handled  per  procedure  9.3.4.  Agencies/Departments  choosing  to  use  public comments  shall  consult  with  County  Counsel  to  develop  agency‐  or department‐specific  disclaimers  to
meet  the  County’s  legal  needs.   County
Counsel  may  also  be  consulted  to  determine  whether  to  remove  comments that violate this policy.

10.3. Agencies/Departments  shall  be  responsible  for  monitoring  employee  use  of social media and social networking websites.

10.4. Perceived  or  known  compromis
es  to  the  County’s  internal  network  shall  be
promptly reported to CEO IT’s Chief Security Officer.
-141-
348
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 12 of 14 VI. RELATED REFERENCES

1. County Approved Social Media Networks and Standards

2. County Social Media Participation Guidelines

3. County eGovernment Policies and Standards

4. County Internet and Data System Use Agreement

5. County Electronic Records Management Policy

6. County Legal Hold Policy

7. California Public Records Act

8. Agency/Department Public Information Policies and Procedures

9. Agency/Department Records Retention Po
licies and Schedules

-142-
349
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 13 of 14 VII. DEFINITIONS
Social Media and Web 2.0 ‐ The U.S. Government defines social media and Web 2.0 as umbrella  terms  that  define  the  various  activities  that  integrate  technology,  social interaction, and content creation. Through social media, individuals or collaborations of individuals  can  create  web  content,  organize  content,  edit  or  comment  on  content, combine content, and share content. Social media and Web 2.0 uses many technologies and forms, including RSS and
other syndicated web feeds, blogs, wikis, photo–sharing, video–sharing, podcast, social bookmarking, mashups, widgets, virtual worlds, micro– blogs, and  more. Not all forms of social media may be appropriate for use by County agencies and departments.

Official  County  Email  Account  –  Email  a
ccount  provided  by  an  agency/department
mail system or approved external mailbox that is used for official County business.

Approved County Social Networking Site – Refers to social networks that the County Executive  Office  has  assessed  and  approved  for  use  by  County  Agencies  and Departments.

Moderated Blog – The practice of approving blog contributor content (often referred to as user post or comments) prior to
the content being displayed to blog visitors.

Agency/Department  Designated  Blog  Moderator  –  A  County  of  Orange  workforce member  assigned  to  monitor  and  manage  the  stream  of  user  contributions  and interactions with an online County blog.

In general, the blog moderator’s responsibility
is to promote the quality and effectiveness of the blog and to insure that blog content, including user post, is in compliance with County policy.

Post ‐ A user submitted message that may include comments and/or one or more links to  online  information  including  but  may  not  be  limited  to  websites,  video,  images, documents, computer applications, etc.

-143-
350
CCoouunnttyy  EExxeeccuuttiivvee  OOffffiiccee
Information Technology Policy and Procedure

County Social Media Use Policy v1.0 Page 14 of 14 Revision History:

Revision No.  Revision Date  Author  Description
v1.0  3/30/2010  CEO‐IT  Document originated

-144-
351
ATTACHMENT 7
-145-
352

-146-
353
From: [email protected]
To: PLANNING INFO
Subject: Official Public Notice: Application No. PGSH-24-0002 Date: Tuesday, October 14, 2025 11:28:06 PM
To whom it may concern:

I received an Official Public Notice regarding application no. PGSH-24-0002 for a sober living house at 1601 Baker Street. The notice states that public comments must be submitted by 12:00 PM on the date of the meeting.

Following are my comments:

I implore the Planning Department not to allow a half way house in the middle of a prime, family, residential community at 1601 Baker Street.

I own property
at Baker and Royal Palm. There are many young and teenage children that walk that section of Baker to access the shopping on Harbor Blvd. None of us want to have a child violated.

The property is listed as having 4 bedrooms and two bathrooms. The application is for 7 adults. This is too many adults in the facility which could lead to problems with the neighbors, parking problems, trash and other conditions caused by over crowding.

There are areas of Costa Mesa that are more suited to sober living, sex offenders and halfway houses.

This residential community is not so suited.

Please do not allow this residential home to be overcrowded and endanger the neighborhood.

Respectfully,
Derek Davis
PO Box 10343
Costa Mesa, CA 92627

NOTICE: This electronic mail message and its contents, including any attachments hereto (collectively, "this e-mail"), is hereby designated as "confidential and proprietary." This e-mail may be viewed and used only by the person to whom it has been sent and his/her employer solely for the express purpose for which it has been disclosed and only in accordance with any confidentiality or non-disclosure (or similar) agreement between TEAC Corporation or its affiliates and said employer, and may not be disclosed to any other person or entity.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any ATTACHMENT 8
-147-
354
suspicious activities to the Information Technology Department. -148-
355
From: Ronn Waters
To: PLANNING INFO
Subject: Application PGSH-24-0002
Date: Thursday, October 9, 2025 4:06:22 PM
Why would you put a Sober Living Home next door to a Group Home for Kids. That does not sound helpful nor safe. For either.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -149-
356
From: Ronn Waters
To: PLANNING INFO
Subject: Application PGSH-24-0002
Date: Thursday, October 9, 2025 11:06:17 AM
Public Notice Comment:

The SUP would make a bad parking situation worse. There is already one Group Home on Baker street and their staff/interns take up a lot of the available street parking. Those of us who actually pay taxes here are not able to park in front of our homes.

The sidewalks of the recovery homes on Royal Palm are littered with cigarette butts. We don't need that on Baker street.

Ronn Waters
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -150-
357
January 5, 2026

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT
George Vilagut
Stephouse Recovery, Inc.
9679 Ellis Avenue
Fountain Valley, CA 92708
[email protected]
RE: NOTICEOFDECISIONFORTHEAPPROVALOFSPECIALUSEPERMITPGSH- 24-0002 TO ALLOW A NEW SOBER LMNG HOME WITH SIX OR FEWER

PERSONS (NOT COUNTING THE HOUSE MANAGER) (STEPHOUSE RECOVERY INC.) AT i 60'l BAKER STREET
To Mr. Vilagut,
The Special Use Permit review for the above-referenced project has been completed. The application, as described in the attached project description, has been approved based on compliance with Costa Mesa Municipal Code (CMMC Section) 13-311 and subject to the conditions of approval and code requirements (attached). The decision will become final at 5:00 p.m. on January 12, 2026, unless appealed by an affected party by filing the necessary application and paying the appropriate fee, or ifthe decision is called up for review by a member ofthe City Council.

Please note that issuance of the Special Use Permit is expressly conditioned upon the Applicant's continued compliance with all applicable provisions ofthe Municipal Code and the representations made in the application materials. Any failure to strictly adhere to these requirements may result in enforcement action or revocation of the Special Use Permit, as provided for under the Municipal Code.

If you have any questions regarding this letter, please feel free to contact the project planner, Victor Mendez, at 714-754-5276, or at [email protected].

Sincerely,
Economic and Development Services Director
Attachments: Memorandum and Hearing Officer Notice of Decision CC: Fire Marshal
77 FAIR DRIVE, POST OFFICE BOX 1200, COSTA MESA CA. 92628-1200 Building Safety Division (714) 754-5273 Communitylmprovement Division (7'l4) 754-5638 Housing & Community Development (714) 754-4870 Planning Division (714) 754-5245 www.costamesaca.gov
IlPage
ATTACHMENT 3
358

L A W O F F I C E S
Dapeer, Rosenblit & Litvak, LLP
WILLIAM LITVAK*
STEVEN H. ROSENBLIT
KENNETH B. DAPEER
JAMES C. ECKART
ERIC P. MARKUS

LILY KEENAN

SARAH EDMISTON

DEEPTA JANARDHAN
*managing partner

WEST LOS ANGELES OFFICE
11500 W. OLYMPIC BLVD., SUITE 550
LOS ANGELES, CA 90064-1524
TELEPHONE (310) 477-5575
FACSIMILE (310) 477-7090
WRITER’S EMAIL
[email protected]
MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002
STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA)

NOTICE OF DECISION
GROUP HOME SPECIAL USE PERMIT APPLICATION NO. PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) In accordance with Section 13-311 of the Costa Mesa Municipal Code (hereinafter, “CMMC” or “Municipal Code”), on or about August 26, 2024, Stephouse Recovery, Inc. and George Vilagut (hereinafter, collectively, “Applicant”) submitted an application for a Special Use Permit to operate a single-unit sober living home at 1601 Baker Street, Costa Mesa (hereinafter, “Subject Property” or “Site”) – which is within a Single-Family Residential (“R1”) Zoning District.

Pursuant to CMMC §13-311(b), on October 23, 2025, the undersigned conducted a public hearing at Costa Mesa City Hall to receive information regarding Applicant’s compliance with the applicable provisions of subsections (a) and (b) of CMMC Section 13-311.

After having considered the application and supporting material, as well as all evidence provided at the public hearing, the undersigned determined that the Applicant was not in compliance with the provisions of CMMC Section 13-311, subsections (a) and (b) [and, specifically, Sections 13-311(a)(10)(iii) and (a)(11)(1)], as set forth in a Memorandum of Evidence Received at Public Hearing #25-01 (“Memorandum of Evidence”), issued by the undersigned on November 6, 2025.

On November 28, 2025, the Board of Directors for S tephouse Recovery, Inc. amended its Discharge Policies to address the deficiencies noted in the Memorandum of Evidence. A copy of the amended Discharge Policies is on file with the City’s Economic & Development Services Department in connection with Special Use Permit Application PGSH-24-0002.

ATTACHMENT 1
359

NOTICE OF DECISION GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 2 of 2 - The undersigned has determined that the amended Discharge Policies do, in fact, satisfactorily address the deficiencies in the application as set forth in the Memorandum of Evidence, and that the Applicant is now in compliance with or has agreed to comply with the requirements of CMMC Sections 13-311(a)(1) through 13-311(a)(14) – and that no grounds for denial as set forth in CMMC Section 13-311(b) have been determined. Therefore, pursuant to Costa Mesa Municipal Code Section 13-311(b), a Group Home Special Use Permit shall be issued as a ministerial matter to the Applicant to operate a Group Home at 1601 Baker Street, Costa Mesa.1 Failure of the Applicant (and/or any agent or representative thereof) to strictly adhere to the requirements listed in CMMC Section 13-311, or any determination by the Director of any circumstances set forth in CMMC Section 13-311(b), may result in the revocation of the Group Home Special Use Permit. Pursuant to the provisions of Chapter IX of the Municipal Code, any affected person may appeal this determination to the City Manager by filing an application with the City Clerk (and tendering all applicable processing fees in an amount determined by resolution of the City Council) within seven (7) calendar days of this Notice of Decision. The application for appeal shall contain sufficient information to identify the part, its interest in the matter, and the reason(s) for requesting an appeal. Failure of the City Clerk to receive an application for appeal or corresponding processing fees shall render this decision final and binding. _________________________________ 17 December 2025 James Eckart, Date Designee of the Director of Development Services for the City of Costa Mesa 1 Prior to operation of the sober living group home, the applicant shall schedule and pass an inspection by the Costa Mesa Fire Department to verify that the Subject Property meets the basic fire and life safety requirements for a single-family dwelling, including but not limited to the installation of smoke detectors and carbon monoxide (CO) detectors. 360

L A W O F F I C E S
Dapeer, Rosenblit & Litvak, LLP
WILLIAM LITVAK*
STEVEN H. ROSENBLIT
KENNETH B. DAPEER
JAMES C. ECKART
ERIC P. MARKUS

LILY KEENAN

SARAH EDMISTON

DEEPTA JANARDHAN
*managing partner

WEST LOS ANGELES OFFICE
11500 W. OLYMPIC BLVD., SUITE 550
LOS ANGELES, CA 90064-1524
TELEPHONE (310) 477-5575
FACSIMILE (310) 477-7090
WRITER’S EMAIL
[email protected]
MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002
STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION NO. PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) In accordance with Section 13-311 of the Costa Mesa Municipal Code (hereinafter, “CMMC” or “Municipal Code”), on or about August 26, 2024, Stephouse Recovery, Inc. and George Vilagut (hereinafter, collectively, “Applicant”) submit an application for a Special Use Permit to operate a single- unit sober living home at 1601 Baker Street, Costa Mesa (hereinafter, “Subject Property” or “Site”) – which is within a Single-Family Residential (“R1”) Zoning District.

Pursuant to CMMC §13-311(b), o n October 23, 2025, the undersigned conducted a public hearing at Costa Mesa City Hall to receive information regarding Applicant’s compliance with the applicable provisions of subsections (a) and (b) of CMMC Section 13-311.

ISSUES PRESENTED
Chapter XV (“Group Homes”) of Title 13 (“Planning, Zoning, and Development”) of the Municipal Code provides a ministerial process by which a group home may be operated within an R1 Zone of the City while allowing the City to preserve the residential character of single-family residential neighborhoods.

Pursuant to CMMC §13-311, the operator of a group home must obtain a Special Use Permit in order to operate within an R1 Zone of the City. CMMC §13-311(b) explicitly provides, in pertinent part:

The special use permit shall be issued by the director as a ministerial matter if the Applicant is in compliance or has agreed to comply with subsections (a)(1) through (a)(14) of this section. At least 10 days prior to issuing a special use permit, the director shall ATTACHMENT 2
361

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 2 of 10 - cause written notice to be mailed to the owner of record and occupants of all properties within 500 feet of the location of the group home. Prior to issuance of the special use permit, the director shall hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of this section. EVIDENCE CONSIDERED The following exhibits, documents, and/or testimony were presented and accepted into evidence at the public hearing: 1. Notice of Public Hearing; 2. Staff Report/Memorandum – inclusive of the following attachments: a) Attachment 1 – Project Data Table b) Attachment 2 – Plans (including Site Plan, Elevations, Roof Plans, and Sections); c) Attachment 3 – Table of Substance Use Disorder Treatment Facilities within Costa Mesa; d) Attachment 4 – Table of City Approved Sober Living/Group Homes within Costa Mesa; e) Attachment 5 – Special Use Permit Application and Supporting Documents (including Policies and Procedures) [Stephouse Recovery, Inc/George Vilagut]; f) Attachment 6 – Stephouse Recovery Policies and Procedures / OCHCA Recovery Residence Services; g) Attachment 7 – Orange County Certificates of Compliance #337 [Stephouse Recovery @ 1601 Baker Street, Costa Mesa and #338 [Stephouse Recovery @ 9678 Ellis Avenue, Fountain Valley] (Expired September 4, 2025); 3. Annual Contractor Performance Evaluation [The Stephouse Recovery, Inc.] (Contract Term: July 1, 2023 – June 30, 2024) 4. Notice of Action (Huntington Beach Special Use Permit SUP-2023-002); 5. Orange County Certificate of Compliance #374 [The Stephouse Recover, Inc. @ 8422 Polder Circle, Huntington Beach] (Expires July 16, 2026) 6. In-Person/live testimony from the following witnesses: a) Victor Mendez, Costa Mesa Senior Planner; b) George Villagut, Applicant; 362

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 3 of 10 - c) Marilyn Scott-Waters; d) Wyatt Russell; e) Gloria Johnson; f) Erika Wallace; g) Jake Johnson; 7. Written correspondence/testimony from the following witnesses: a) Derek Davis; b) Ronn Waters; c) Marilyn Scott-Waters; d) Theresa Parra; e) Wyatt Russell; f) Kristin Auslander; g) George Vilagut; SUMMARY OF TESETIMONY The following is a brief summary of the testimony that was presented at the public hearing, and it is not meant to be a verbatim description of the testimony presented. Ø Victor Mendez provided a presentation on behalf of the Costa Mesa Economic & Development Services Department of Stephouse Recovery, Inc.’s application, as well as applicable development standards pursuant to the Costa Mesa Municipal Code. Mr. Mendez testified that the Applicant adheres to each of the applicable development standards, as well as all other requirements of CMMC §13-311(a) and (b). Mr. Mendez confirmed that the Special Use Permit is subject only to ministerial review, and also addressed concerns raised by both written and in-person testimony regarding “Childhelp USA”, which operates a Residential Care Facility at 1597 Baker Street, Costa Mesa. Mr. Mendez stated that the proximity of Childhelp USA to the proposed Stephouse Recovery location would not bar the issuance of a Special Use Permit for Stephouse Recovery because Childhelp USA is not a Sober Living Home – and the Municipal Code’s 650’ separation requirement would not apply to this facility. 363

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 4 of 10 - Ø George Vilagut provided a presentation on behalf of Stephouse Recovery, Inc.’s application. Mr. Villigut confirmed the following information about the proposed Sober Living Group Home at the Subject Property: v The vast majority of residents/clients of Stephouse Recovery would be referred by the Orange County Health Care Agency (“OCHCA”); v There would not be more than six (6) recovery residents at a time – with a limit of 90-day stays; v One (1) full-time house manager would reside at the premises; v All employees and volunteers’ go through a background screening with the Orange County Sheriff’s Department prior to hiring; v The facility is only available to approved clients and is never open to the public. Visitors are not permitted in the residence; v The Applicant would not provide supervised care, counseling, treatment, or recovery planning – and residents must be capable of living independently. Mr. Vilagut further confirmed that while residents of the Stephouse Recovery facility at the Subject Property would be required to participate in appropriate alcohol/drug treatment (and, in fact, would have already participated in such treatment prior to residing at the Subject Property), no such services would be provided on-site. Rather, the residents would obtain those services at off-site locations. Mr. Vilagut further discussed the Applicant’s zero-tolerance Drug and Alcohol Policy, “Good Neighbor Policy” (including curfews for clients), screening procedures to reject services for persons who have been convicted of specified criminal activity and/or who require a higher level of care than that provided at the proposed Sober Living Group Home, and policies and procedures for discharging residents and/or involuntary termination of services to residents. During his final comments, Mr. Vilagut denied that Stephouse Recovery, Inc. or any agent thereof is advertising for or operating a Sober Living Group Home at the Subject Property – and stated that the persons residing at the Site at this time are residential tenants who will vacate upon approval of the Special Use Permit and commencement of sober living operations at the Subject Property. He also denied any enforcement actions taken against his operations by any other municipality or the County of Orange. Mr. Vilagut stated that surveillance cameras would be installed at the Site to ensure that clients/residents adhere to applicable rules and regulations. 364

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 5 of 10 - Ø Marilyn Scott-Waters objected to an approval of the Special Use Permit primarily based upon her assertions that (i) allowing the Applicant to operate a Sober Living Group Home at the Subject Property would conflict with the City’s General Plan in that the Geneal Plan provides for the protection and enhancement of residential neighborhoods, and (ii) it would be located in too close of proximity to the Childhelp USA facility located at 1597 Baker Street, Costa Mesa – and while this facility might not be a Sober Living Facility as defined by the Municipal Code, it has similar adverse impacts, and an approval of Stephouse Recovery’s application would increase those adverse impacts upon the residential neighborhood. Ø Wyatt Russell objected to an approval of the Special Use Permit at this time, stating that it would be premature without additional investigation by the Director. Specifically, Mr. Russell alleged that (i) Stephouse Recovery has been advertising their operation in Costa Mesa despite not having been issued a permit; (ii) the Director has not adequately verified that the Subject Property would be at least 650’ from another Sober Living Home or State licensed alcohol/drug abuse recovery or treatment center; and (iii) the Applicant has negative compliance history at its other operations – including a wrongful death lawsuit and enforcement actions taken by the Cities of Huntington Beach and Fountain Valley. Ø Gloria Johnson objected to an approval of the Special Use Permit primarily based upon (i) the proximity of the Subject Property to the Childhelp USA facility at 1597 Baker Street, Costa Mesa; and (ii) her assertions that Staff and clients would further reduce on-street parking, and some Staff are already blocking private driveways and moving trashcans to facilitate on-street parking for themselves. Ø Erika Wallace objected to an approval of the Special Use Permit primarily based upon (i) the proximity of the Subject Property to the Childhelp USA facility at 1597 Baker Street, Costa Mesa; and (ii) the pending application has increased the difficulty in selling her home. Ø Jake Johnson objected to an approval of the Special Use Permit primarily based upon his assertion that this type of use should not be allowed in residential neighborhoods due to adverse impacts upon the community – including reduced on-street parking and increased traffic (ranging from delivery vehicles to the client-members of the Sober Living facility). 365

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 6 of 10 - ANALYSIS The City of Costa Mesa requires a “group home” that seeks to operate within an R1 Zone of the City to obtain a Special Use Permit as issued by the Development Services Director. Costa Mesa Municipal Code Section 13-6 provides, in pertinent part, that a group home is: A facility that is being used as a supportive living environment for persons who are considered handicapped under state or federal law…. Group homes shall not include the following: (1) residential care facilities; (2) any group home that operates as a single housekeeping unit. Although a Special Use Permit would be required, CMMC §13-311(b) explicitly provides that the “special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(1) through (a)(14) of [CMMC §13-311]”. It further requires the Director (or designee thereof) to “hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of [CMMC §13-311]” at least ten (10) days prior to issuing a Special Use Permit. In accordance with CMMC §13-311(b), on October 23, 2025, the undersigned, as designated by the Development Services Director, conducted a duly-noticed public hearing, and provided an opportunity for Staff, the Applicant, and the general public to submit information regarding whether the Applicant is in compliance and/or has agreed to comply with the requirements of CMMC §13-311, subsections (a) and (b). After a thorough analysis of the Special Use Permit application and supporting material submitted by Stephouse Recovery, Inc./George Vilagut, Victor Mendez testified in writing and in-person that Stephouse Recovery, Inc. has satisfied all provisions and requirements of CMMC §13-311, subsections (a) and (b) – and that no disqualifying grounds have been determined to date. Despite legitimate concerns having been raised by members of the public who provided written and/or verbal testimony as part of these proceedings regarding potential adverse impacts of a Sober Living Group Home being located within R1 Zones of the City – and specifically within the Mesa Verde neighborhood, pursuant to CMMC 13-311(b), a “special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(1) through (a)(14)” of CMMC §13-311 (emphasis added). 366

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 7 of 10 - Amongst other arguments, several members of the public objected to an approval of the Special Use Permit application based upon the assertion that the Subject Property would not adhere to the prohibitions set forth in CMMC Sections 13-311(a)(14)(i) and 13-311(b)(6)(iii) as the Site would be “within 650 feet of any other sober living home or state licensed alcoholism or drug abuse recovery or treatment facility”. Specifically, members of the public referred to the property at 1597 Baker Street, Costa Mesa – where Childhelp USA operates. In this regard, CMMC §13-6 defines a “sober living home” as: A group home for persons who are recovering from a drug and/or alcohol addiction and who are considered handicapped under state or federal law. Sober living homes shall not include the following: (1) residential care facilities; (2) any sober living home that operates as a single housekeeping unit. Mr. Mendez provided credible testimony that Childhelp USA operates a Short-Term Residential Therapeutic Program (“STRTP”) that provides short-term care and supervision of children and non-minor dependents, including those children that have been abused, neglected, or are otherwise at risk. Mr. Mendez further testified that Childhelp USA does not constitute a sober living home (as defined by the Municipal Code) nor a state licensed alcohol/drug recovery or treatment center – and Stephouse Recovery, Inc. would not be prohibited from operating or being located within 650’ of Childhelp USA’s facility at 1597 Baker Street, Costa Mesa. It should be noted that none of the witnesses provided any testimony (in person or in writing) contradicting the operations of Childhelp USA – or otherwise providing any credible evidence that Childhelp USA would, in fact, constitute a sober living home or a state-licensed alcohol/drug recovery or treatment center. The undersigned has reviewed each of the written policies and procedures submitted by the Applicant, and the undersigned has found insufficient evidence to determine that the Applicant is or has agreed to comply with the requirements of subsections (a)(10) and (a)(11) of CMMC §13-311. Specifically, CMMC §13-311(a)(10) provides, in pertinent part, that: (10) At least 48 hours prior to an occupant’s eviction from or involuntary termination of residency in a group home, the operator thereof shall: … 367

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 8 of 10 - (iii) Notify the city’s Network for Homeless Solutions that an occupant is no longer a resident at the home, and determine the services available therefrom. The Applicant stated in its application that “Due to HIPAA and County Regulations, Stephouse Recovery would not be able to notify any other agency of a resident’s status without a signed release of information.” The Applicant’s statement in the Special Use Permit application, therefore, confirms that there is at least one method of adhering to both CMMC §13-311(a)(10) and HIPAA (e.g., by requiring residents/clients upon admission to the Group Home to sign a release of information authorizing the Applicant to notify the City’s Network for Homeless Solutions of an involuntary termination of residency), however, the Applicant falls short of confirming that it would do so – or to enact any other procedure to strictly adhere to the Municipal Code.1 CMMC §13-311(a)(11) provides, in pertinent part: (11) Prior to an occupant’s eviction from or involuntary termination of residency in a group home, the operator thereof shall also: (i) Make available to the occupant transportation to the address listed on the occupant’s driver license, state-issued identification card, or the permanent address identified in the occupant’s application or referral to the group home The Applicant’s procedures for “involuntary discharge” do mandate that “Each client should receive a housing resource guide upon discharge…Stephouse Recovery will assist discharged clients in securing safe, temporary shelter in the event of immediate discharge.” Moreover, the “Discharge Procedures for Staff” provide that “Should transportation to treatment or a shelter be necessary, Stephouse will provide.” However, these do not confirm strict compliance with 1 The Applicant’s “Discharge Procedures for Staff” provides, in pertinent part, that “In the case of homelessness, the appropriate city agency will be contacted to determine if services are available to the client.” This procedure, however, does not strictly adhere to the requirement in CMMC §13-311(a)(10)(iii) in that it does not explicitly provide for notification to the City’s Network for Homeless Solutions that an occupant is no longer a resident at least 48 hours prior to the eviction or involuntary termination of services, nor does it ensure notification and/or identification of the specific client/occupant so that Network Staff may offer services. Rather, it provides that Stephouse Staff will contact “the appropriate city agency…to determine if services are available to the client.” While the undersigned appreciates the potential conflicts between the Costa Mesa Municipal Code and HIPAA, as set forth hereinbelow, the Applicant can seek reasonable accommodations to obtain relief from strict compliance with the provisions of Municipal Code Section 13-311(a). 368

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 9 of 10 - Municipal Code Section 13-311(a)(11)(i) in that it does not confirm that transportation would be provided to the occupant’s/client’s permanent address as listed on that person’s driver’s license, identification card, or application or referral to the Group Home (in the alternative of providing transportation to “treatment or a shelter”. It should be noted that, pursuant to CMMC §13-311(a)(15): An applicant may seek relief from the strict application of [CMMC §13-311] by submitting an application to the director setting forth specific reasons why accommodation over and above this section is necessary under state and federal laws, pursuant to section 13-200.62. The procedures outlined in CMMC §13-200.62 allow an applicant to request reasonable accommodations – and, if approved, would allow the City to impose alternative conditions that would satisfy the reasonable accommodation while still achieving the City’s objective. In this instance, however, no evidence has been submitted to the undersigned that the Applicant has submitted an application to the Director pursuant to CMMC §§13-311(a)(15) and 13-200.62 to seek relief from the provisions of Subsections (a)(10) and (a)(11) of Section 13-311 of the Municipal Code. CONCLUSION The purpose of the public hearing is to receive information from Staff, the Applicant, and the general public “regarding compliance with the applicable provisions of subsections (a) and (b) of [CMMC §13-311]. Although the Applicant appears to comply with most provisions of CMMC Section 13-311, subsections (a) and (b) [including the distance requirement from any other sober living home or state-licensed alcohol/drug recovery or treatment center], the Applicant does not strictly adhere to subsections (a)(10)(iii) and (a)(11)(i) of CMMC Section 13-311 at this time. Moreover, although the Applicant may seek relief from these specific requirements in accordance with CMMC Sections 13-311(a)(15) and 13-200.62, there is no evidence that the Applicant has, in fact, sought reasonable accommodations in the manner authorized by the Municipal Code. Although the review of a Special Use Permit application is a “ministerial matter”, pursuant to CMMC §13-311(b), it may only be approved if the Applicant is in compliance with the provisions of CMMC §13-311, subsections (a) and (b). As 369

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 10 of 10 - stated above, the Applicant is not currently in strict compliance with those provisions. This Memorandum of Evidence is hereby submitted to the Director so that the Director may make a final determination on Special Use Permit application PGSH-24-0002 in accordance with Costa Mesa Municipal Code Section 13-311. Before making a final determination on the application, the Director (and designees thereof) may, in consideration of this Memorandum, provide the Applicant a final opportunity either (i) to confirm compliance with CMMC Section 13-311, subsections (a) and (b) [and, specifically, Sections 13-311(a)(10)(iii) and (a)(11)(1)], or, in the alternative, (ii) to apply for reasonable accommodations and relief from subsections (a)(10)(iii) and (a)(11)(i) of Section 13-311 of the Municipal Code. _________________________________ 6 November 2025 James Eckart, Date Hearing Officer and Designee of Director of Development Services 370
The following policy was revised and approved by Stephouse Recovery, Inc. Board of Directors on 11/24/25

DISCHARGE/TERMINATION POLICY

The client has completed the program when they have used their maximum allotted time or reached their transition goals. Staff will complete a Discharge Form to document the circumstances of the client's departure from sober living. Clients are not required to sign the discharge form.

Staff will complete the Recovery Residence Referral Form with the discharge date, indicate whether the client has completed or is still incomplete, and provide the reason.

The form should be emailed to the OCHCA Gatekeeper within 72 hours of discharge.

Failure to comply with StepHouse policies signed at intake may result in an early administrative termination from the program. Infractions will be documented, and the OCHCA Gatekeeper and Program Monitor will be notified. The client's Probation/Parole Officer will be notified of termination when applicable. In addition, there may be circumstances in which law enforcement is called, and legal action is taken against the client. Residents who have relapsed and are under the influence may be transported to Be Well Orange Campus or College Hospital Costa Mesa.

If a client discharges or is terminated from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity. Clients who are terminated from the program must be sober before they reenter Stephouse property.

Should it be necessary upon discharge, Stephouse Recovery will assist clients in securing safe transportation and/or temporary shelter. Clients will either be assisted with Movidcare Medi-Cal transport or a bus pass to ensure they can reach their discharge destination.

The following new policy was revised and approved by Stephouse Recovery, Inc. Board of Directors on 11/28/25

BAKER HOUSE DISCHARGE POLICY
This policy applies exclusively to clients residing at the Baker Residence in Costa Mesa.

To comply with the City of Costa Mesa’s Code of Ordinances, Title 13 – Planning, Zoning and Development, Chapter XV – Group Homes, §13-311 (a)(10) & (11), Stephouse Recovery staff will adhere to the following protocol:

(10) At least 48 hours before a resident's eviction from or involuntary termination of residency at Stephouse Recovery, Stephouse staff will
i. Notify the person designated as the resident's emergency contact or contact of record that the resident will no longer be a resident at the home. 371
ii. Contact the Orange County Health Care Agency OC Links Referral Line and/or another entity designated by the City to determine the services available to the resident, including, but not limited to, alcohol and drug inpatient and outpatient treatment. iii. Notify the city's Network for Homeless Solutions that a client is no longer a resident at the home and determine available services.
iv. Provide the information obtained from paragraphs ii and iii of this subsection (a)(10) and any other treatment provider or service to the resident before his or her release on a form provided by the City and obtain the resident's signed acknowledgement. v. Provided, however, that if the resident's behavior results in immediate termination of residency pursuant to rules approved by the City, Stephouse Recovery shall comply with paragraphs i through iv of this subsection (a)(10) as soon as possible. (11) Prior to an resident's eviction from or involuntary termination of residency in a group home, the operator thereof shall also:
i. Make available to the resident, transportation to the address listed on the resident's driver's license, state-issued identification card, or the permanent address identified in the resident's intake form or referral.
ii. Provided, however, that should the resident decline transportation to his or her permanent address or otherwise has no permanent address, then the operator shall make available to the resident transportation to another group home or residential care facility that has agreed to accept the resident.

Please note that all Health Insurance Portability and Accountability Act (HIPAA) privacy laws will be strictly followed. No resident information will be released, shared, or discussed without the resident’s written consent. A valid Release of Information (ROI) must be signed by the residents and placed in their client record, authorizing Stephouse Recovery to provide personal information to the City of Costa Mesa or to any other persons, facilities, or providers as specified.

Participation in the Orange County Health Care Agency Recovery Residence Services Program and sober living services is not contingent upon providing this authorization. Clients retain the right to decline to sign the release and may specify limitations on the information Stephouse Recovery may disclose.

The requirements outlined by the City of Costa Mesa do not replace or supersede OCHCA contractual obligations. Rather, they are considered additional steps to be completed at the time of discharge for Stephouse Recovery residents.

Client Discharge Form
Baker House, Costa Mesa

Client Name: _______________________________________

State Issued Identification or Driver’s License Number: ________________

372
Discharge Date: ________________

Client Completed Sober Living Program:  Yes  No

Client’s discharge destination: _________________________________________ 373
__ . ffii-.__..._
: '
Costa-MeTh
0 Appeal of Planning Commission Decision:
$1,220.00 (Tier 1)'
$3,825.00 (Tier 2)a
City of Costa Mesa
I.J.J
RESERVE FO alNG STAMP
0 Appeal of Non-Planning Commission Decision:
$690.00 (Tier 1)'
$3,825.00 (Tier 2)a

APPLICATION FOR APPEAL OR REVIEW
Applicant Name" John Stephens, Mayor
Address
Phone
REQUEST FOR: € APPEAL [@] REVIEW"
File with: City Clerk
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
714-754-5225
Decision of which appeal or review is requested: (give application number, if applicable, and the date of the decision, if known.)
Special Use Permit PGSH-24-0002 to allow a new sober living home with six or fewer persons (Stephouse Recovery) at 1601 Baker St. Decision date 1/5/2026.

DeC!S!On 5'}: Economic and Development Services Director Reasons for requesting appeal or review:

Date: Signature:
"If you are serving as the agent for another person, please identify the person you represent and provide proof of authorization. "Review may be requested only by Planning Commission, Planning Commission Member, City Council, or City Council Member For office use only - do not write below this line SCHEDULED FOR THE CITY COUNCIL/PLANNING COMMISSION MEETING OF:

If appeal or review is for a person or body other than City Council/Planning Commission, date of hearing of appeal or review Updated September 2023
' Includes owners and/or occupants of a property located within 500 Feet of project site (excluding owners and/or occupants of the project site). alncludes the project applicant, owners and/or occupants of the project site, and owners and/or occupants of a properl located greater than 500 feet from the project site.

ATTACHMENT 4
-1-
374
January 5, 2026

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT
George Vilagut
Stephouse Recovery, Inc.
9679 Ellis Avenue
Fountain Valley, CA 92708
[email protected]
RE: NOTICEOFDECISIONFORTHEAPPROVALOFSPECIALUSEPERMITPGSH- 24-0002 TO ALIOW A NEW SOBER LMNG HOME WITH SIX OR FEWER

PERSONS (NOT COUNTING THE HOUSE MANAGER) (STEPHOUSE RECOVERY INC.) AT 1601 BAKER STREET
To Mr. Vilagut,
The Special Use Permit review for the above-referenced project has been completed. The application, as described in the attached project description, has been approved based on compliancewith Costa Mesa Municipal Code (CMMC Sedion)13-311 and subjecttothe conditions of approval and code requirements (attached). The decision will become final at 5:00 p.m. on January 12, 2026, unless appealed by an affected party by filing the necessary application and paying the appropriate fee, orifthe decision is called up for review by a member of the City Council.

Please note that issuance of the Special Use Permit is expressly conditioned upon the Applicant's continued compliance with all applicable provisions ofthe Municipal Code and the representations made in the application materials. Any failure to strictly adhere to these requirements may result in enforcement action or revocation of the Special Use Permit, as provided for under the Municipal Code.

If you have any questions regarding this letter, please feel free to contact the project planner, Victor Mendez, at 7"l4-754-5276, or at [email protected].

Sincerely,
Carrie Tai-
Economic and Development Services Director
Attachments: Memorandum and Hearing Officer Notice of Decision CC: Fire Marshal
77 FAIR DRIVE, P()ST OFFICE BOX 1200, COSTA MESA CA. 92628-1200 Buiding Safety Division (714) 754-5273 Coi'nmrin:tylmprovement Division (714) 754-5638 Horisino 8i Commi.niity Development (7 14', 7Ei4-4B70 Plannn'ig Division (7 14) 754-5245 VlA"b'vV costamesaca gov
1iPage
-2-
375

ATT ACHMENT I

LAWOFFICES

DAPEER, ROSENBLIT & LITVAK, LLP
WILLIAM LITVAK"
STEVEN H. ROSENBLIT
KENNEn-l B. DAPEER
JAMES C. ECKART
ERIC P MARKuS

LILY KEENAN
SARAH E[)MISTON

DEEPTA JANAFIDHAN

WEST LOS ANGELES OFFICE
500 W. OLYMPIC BLVD.. SUITE 550
LOS ANG ELES CA !;)006 4- 15 2 4
TELEPHONE i310) 477-557'fi
FACSIMILE i310) 477-70(;10

WRITER'S EMAIL
JECKART@[)RLLAW COM
%lANAGIN(a PARTNER

NOTICE OF DECISION
GROUP HOME SPECIAL U8E PERMIT APPLICATION NO. PGSH-24-0002 8TF,PHOU8E RECOVERY, INC. (1601 BAKER 8TREF,T, COSTA ME8A) In accordance with Section 13-311 of the Costa Mesa Municipal Code (hereinafter, "CMMC" or "Municipal Code"), on or about August 26, 2024, Stephouse Recovery, Inc. and George Vilagut (hereinafter, collectively, "Applicant") submitted an application for a Special Use Permit to operate a single-unit sober living home at 1601 Baker Street, Costa Mesa (hereinafter, "Subject Property" or "Site") - which is within a Single-Family Residential ("Rl") Zoning District.

Pursuant to CMMC §13-31 1(b), on October 23, 2025, the undersigned conducted a public hearing at Costa Mesa City Hall to receive information regarding Applicant's compliance with the applicable provisions of subsections (a) and (b) of CMMC Section 13-311.

After having considered the application and supporting material, as well as all evidence provided at the public hearing, the undersigned determined that the Applicant was riot in compliance with the provisions of CMMC Section 13-311, subsections (a) and (b) [and, specifically, Sections 13-311(a)(10)(iii) and (a)(l 1)(1)], as set forth in a Memorandum of Evidence Received at Public Hearing #25-01 ("Memorandum of Evidence"), issued by the undersigned on November 6, 2025.

On November 28, 2025, the Board of Directors for Stephouse Recovery, Inc. amended its Discharge Policies to address the deficiencies noted in the Memorandum of Evidence. A copy of the amended Discharge Policies is on file with the City's Economic & Development Services Department in connection with Special Use Permit Application PGSH-24-0002.

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-0 1 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) -3-
376
The undersigned has determined that the amended Discharge Policies do, in fact, satisfactorily address the deficiencies in the application as set forth in the Memorandum of Evidence, and that the Applicant is now in compliance with or has agreed to comply with the requirements of CMMC Sections 13-311(a)(1) through 13-311(a)(14) - and that no grounds for denial as set forth in CMMC Section 13-311(b) have been determined.

Therefore, pursuant to Costa Mesa Municipal Code Section 13-311(b), a Group Home Special Use Permit shall be issued as a ministerial matter to the Applicant to operate a Group Home at 1601 Baker Street, Costa Mesa.l Failure of the Applicant (and/or any agent or representative thereof) to strictly adhere to the requirements listed in CMMC Section 13-311, or any determination by the Director of any circumstances set forth in CMMC Section 13-311 (b), may result in the revocation of the Group Home Special Use Permit.

Pursuant to the provisions of Chapter IX of the Municipal Code, any affected person may appeal this determination to the City Manager by filing an application with the City Clerk (and tendering all applicable processing fees in an amount determined by resolution of the City Council) within seven (7) calendar days of this Notice of Decision. The application for appeal shall contain sufficient information to identify the part, its interest in the matter, and the reason(s) for requesting an appeal.

Failure of the City Clerk to receive an application for appeal or corresponding processing fees shall render this decision final and binding.

I
Director of Development Services
for the City of Costa Mesa
17 December 2025
Date
I Prior to operation of the sober living group home, the applicant shall schedule and pass an inspection by the Costa Mesa Fire Department to verify that the Subject Property meets the basic fire and life safety requirements for a single-family dwelling, including but not limited to the installation of smoke detectors and carbon monoxide (CO) detectors.

NOTICE OF DECISION
GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTAMESA) - Page 2 of 2 -
-4-
377
ATT ACHMENT 2

LAWOFFICES

DAPEER, ROSENBLIT & LITVAK, LLP
WILLIAM LITVAK"
STEVEN H. ROSENBLIT
KENNEn-l B DAPEER
JAMES C. ECKART
ERIC P. MARKUS

LILY KEENAN

SARAH EDMISTON

DEEPTA JANARDHAN

WEST LOS ANGELES OFFICE
500 W. OLYMPIC BLVD. SUITE 550
LOS ANG ELES C A 9006 4- 15 2 4
TELEPHONE [310) 477-5575
FACSIMILE (310) 477-7090

WRITER'S EMAIL
JECKART@DRLLAW COM
MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION NO. PGSH-24-0002 8TEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) In accordance with Section 13-311 of the Costa Mesa Municipal Code (hereinafter, "CMMC" or "Municipal Code"), on or about August 26, 2024, Stephouse Recovery, Inc. and George Vilagut (hereinafter, collectively, "Applicant") submit an application for a Special Use Permit to operate a single- unit sober living home at 1601 Baker Street, Costa Mesa (hereinafter, "Subject Property" or "Site") - which is within a Single-Family Residential ("Rl") Zoning District.

Pursuant to CMMC §13-31 1(b), on October 23, 2025, the undersigned conducted a public hearing at Costa Mesa City Hall to receive information regarding Applicant's compliance with the applicable provisions of subsections (a) and (b) of CMMC Section 13-311.

I8SUES PRESENTED
Chapter XV ("Group Homes") of Title 13 ("Planning, Zoning, and Development") of the Municipal Code provides a ministerial process by which a group home may be operated within an Rl Zone of the City while allowing the City to preserve the residential character of single-family residential neighborhoods.

Pursuant to CMMC §13-31 1, the operator of a group home must obtain a Special Use Permit in order to operate within an Rl Zone of the City. CMMC §13-3 11 (b) explicitly provides, in pertinent part:

The special use permit shall be issued by the director as a ministerial matter if the Applicant is in compliance or has agreed to comply with subsections (a)(l) through (a)(14) of this section. At least 10 days prior to issuing a special use permit, the director shall MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) -5-
378
cause written notice to be mailed to the owner of record and occupants of all properties within 500 feet of the location of the gro'up home. Prior to issuance of the special use permit, the director shall hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of this section.

EVIDENCE CONSIDERED
The following exhibits, documents, and/or testimony were presented and accepted into evidence at the public hearing:

1. Notice of Public Hearing;

2. Staff Report/Memorandum - inclusive of the following attachments:
a) Attachment 1- Project Data Table
b) Attachment 2 - Plans (including Site Plan, Elevations, Roof Plans, and Sections) ;
c) Attachment 3 - Table of Substance Use Disorder Treatment Facilities within Costa Mesa;
d) Attachment 4 - Table of City Approved Sober Living/Group Homes within Costa Mesa;
e) Attachment 5 - Special Use Permit Application and Supporting Documents (including Policies and Procedures) [Stephouse Recovery, Inc/George Vilagut];
f) Attachment 6 - Stephouse Recovery Policies and Procedures / OCHCA Recovery Residence Services;
g) Attachment 7 - Orange County Certificates of Compliance #33? [Stephouse Recovery @ 1601 Baker Street, Costa Mesa and #338 [Stephouse Recovery @ 9678 Ellis Avenue, Fountain Valley] (Expired September 4, 2025);

3. Annual Contractor Performance Evaluation [The Stephouse Recovery, Inc.] (Contract Term: July 1, 2023 - June 30, 2024)

4. NoticeofAction(HuntingtonBeachSpecialUsePermitSUP-2023-002);

5. Orange County Certificate of Compliance #374 [The Stephouse Recover, Inc. @ 8422 Polder Circle, Huntington Beach] (Expires July 16, 2026)

6. In-Person/live testimony from the following witnesses:
a) Victor Mendez, Costa Mesa Senior Planner;
b) George Villagut, Applicant;
MEMORANDUM OF EVIDENCE RECEIVED AT Punhic HEARING #25-0 1 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 2 of 10 -
-6-
379
c) Marilyn Scott-Waters;
d) Wyatt Russell;
e) Gloria Johnson;
f) Erika Wallace;
g) Jake Johnson;

7. Written correspondence/testimony from the following witnesses:
a) Derek Davis;
b) Ronn Waters;
c) Marilyn Scott-Waters;
d) Theresa Parra;
e) Wyatt Russell;
f) Kristin Auslander;
g) George Vilagut;

SUMMARY OF TESETIMONY
The following is a brief summary of the testimony that was presented at the public hearing, and it is not meant to be a verbatim description of the testimony presented.
:> Victor Mendez provided a presentation on behalf of the Costa Mesa Economic &, Development Services Department of Stephouse Recovery, Inc. 's application, as well as applicable development standards pursuant to the Costa Mesa Municipal Code. Mr. Mendez testified that the Applicant adheres to each of the applicable development standards, as well as all other requirements of CMMC §13-311(a) and (b). Mr. Mendez confirmed that the Special Use Permit is subject only to ministerial review, and also addressed concerns raised by both written and in-person testimony regarding "Childhelp USA", which operates a Residential Care Facility at 1597 Baker Street, Costa Mesa. Mr. Mendez stated that the proximity of Childhelp USA to the proposed Stephouse Recovery location would not bar the issuance of a Special Use Permit for Stephouse Recovery because Childhelp USA is not a Sober Living Home - and the Municipal Code's 650' separation requirement would not apply to this facility.

MEMORANDUM OF EVIDENCE RF,CEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 3 of 10 -
-7-
380
> George Vilagut provided a presentation on behalf of Stephouse Recovery, Inc.'s application. Mr. Villigut confirmed the following information about the proposed Sober Living Group Home at the Subject Property:
o> The vast majority of residents / clients of Stephouse Recovery would be referred by the Orange County Health Care Agency ("OCHCA"); aha There would not be more than six (6) recovery residents at a time with a limit of 90-day stays;
o> One (1) full-time house manager would reside at the premises; o> All employees and volunteers' go through a background screening with the Orange County Sheriff's Department prior to hiring; o> The facility is only available to approved clients and is never open to the public. Visitors are not permitted in the residence; o> The Applicant would not provide supervised care, counseling, treatment, or recovery planning - and residents must be capable of living independently.

Mr. Vilagut further confirmed that while residents of the Stephouse Recovery facility at the Subject Property would be required to participate in appropriate alcohol/drug treatment (and, in fact, would have already participated in such treatment p7 to residing at the Subject Property), no such services would be provided on-site. Rather, the residents would obtain those services at off-site locations.

Mr. Vilagut further discussed the Applicant's zero-tolerance Drug and Alcohol Policy, "Good Neighbor Policy" (including curfews for clients), screening procedures to reject services for persons who have been convicted of specified criminal activity and/or who require a higher level of care than that provided at the proposed Sober Living Group Home, and policies and procedures for discharging residents and/or involuntary termination of services to residents.

During his final comments, Mr. Vilagut denied that Stephouse Recovery, Inc. or any agent thereof is advertising for or operating a Sober Living Group Home at the Subject Property - and stated that the persons residing at the Site at this time are residential tenants who will vacate upon approval of the Special Use Permit and commencement of sober living operations at the Subject Property. He also denied any enforcement actions taken against his operations by any other municipality or the County of Orange. Mr. Vilagut stated that surveillance cameras would be installed at the Site to ensure that clients/residents adhere to applicable rules and regulations.

MEMORANDUM OF EVIDENCE Rgcgrvgn AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 4 of 10 -
-8-
381
:> Marilyn Scott-Waters objected to an approval of the Special Use Permit primarily based upon her assertions that (i) allowing the Applicant to operate a Sober Living Group Home at the Subject Property would conflict with the City's General Plan in that the Geneal Plan provides for the protection and enhancement of residential neighborhoods, and (ii) it would be located in too close of proximity to the Childhelp USA facility located at 1597 Baker Street, Costa Mesa - and while this facility might not be a Sober Living Facility as defined by the Municipal Code, it has similar adverse impacts, and an approval of Stephouse Recovery's application would increase those adverse impacts upon the residential neighborhood. > Wyatt Russell objected to an approval of the Special Use Permit at this time, stating that it would be premature without additional investigation by the Director. Specifically, Mr. Russell alleged that (i) Stephouse Recovery has been advertising their operation in Costa Mesa despite not having been issued a permit; (ii) the Director has not adequately verified that the Subject Property would be at least 650' from another Sober Living Home or State licensed alcohol/drug abuse recovery or treatment center; and (iii) the Applicant has negative compliance history at its other operations - including a wrongful death lawsuit and enforcement actions taken by the Cities of Huntington Beach and Fountain Valley. > Gloria Johnson objected to an approval of the Special Use Permit primarily based upon (i) the proximity of the Subject Property to the Childhelp USA facility at 1597 Baker Street, Costa Mesa; and (ii) her assertions that Staff and clients would further reduce on-street parking, and some Staff are already blocking private driveways and moving trashcans to facilitate on-street parking for themselves. > Erika Wallace objected to an approval of the Special Use Permit primarily based upon (i) the proximity of the Subject Property to the Childhelp USA facility at 1597 Baker Street, Costa Mesa; and (ii) the pending application has increased the difficulty in selling her home. > Jake Johnson objected to an approval of the Special Use Permit primarily based upon his assertion that this type of use should not be allowed in residential neighborhoods due to adverse impacts upon the community - including reduced on-street parking and increased traffic (ranging from delivery vehicles to the client-members of the Sober Living facility).

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 5 of 10 -
-9-
382

ANALYSIS
The City of Costa Mesa requires a "group home" that seeks to operate within an Rl Zone of the City to obtain a Special Use Permit as issued by the Development Services Director.

Costa Mesa Municipal Code Section 13-6 provides, in pertinent part, that a group home is:

A facility that is being used as a supportive living environment for persons who are considered handicapped under state or federal law.... Group homes shall not include the following: (1) residential care facilities; (2) any group home that operates as a single housekeeping unit.

Although a Special Use Permit would be required, CMMC §13-311(b) explicitly provides that the "special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(l) through (a)(14) of [CMMC §13-3111". It further requires the Director (or designee thereof) to "hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of [CMMC §13-31 1]" at least ten (10) days prior to issuing a Special Use Permit.

In accordance with CMMC §13-311(b), on October 23, 2025, the undersigned, as designated by the Development Services Director, conducted a duly-noticed public hearing, and provided an opportunity for Staff, the Applicant, and the general public to submit information regarding whether the Applicant is in compliance and/or has agreed to comply with the requirements of CMMC § 13-311, subsections (a) and (b).

After a thorough analysis of the Special Use Permit application and supporting material submitted by Stephouse Recovery, Inc. /George Vilagut, Victor Mendez testified in writing and in-person that Stephouse Recovery, Inc. has satisfied all provisions and requirements of CMMC §13-311, subsections (a) and (b) - and that no disqualifying grounds have been determined to date.

Despite legitimate concerns having been raised by members of the public who provided written and/or verbal testimony as part of these proceedings regarding potential adverse impacts of a Sober Living Group Home being located within Rl Zones of the City - and specifically within the Mesa Verde neighborhood, pursuant to CMMC 13-311(b), a "special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(l) through (a)(14)" of CMMC §13-311 (emphasis added).

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 6 of 10 -
-10-
383
Amongst other arguments, several members of the public objected to an approval of the Special Use Permit application based upon the assertion that the Subject Property would not adhere to the prohibitions set forth in CMMC Sections 13-311(a)(14)(i) and 13-311(b)(6)(iii) as the Site would be "within 650 feet of any other sober living home or state licensed alcoholism or drug abuse recovery or treatment facility". Specifically, members of the public referred to the property at 1597 Baker Street, Costa Mesa - where Childhelp USA operates.

In this regard, CMMC §13-6 defines a "sober living home" as:

A group home for persons who are recovering from a drug and/or alcohol addiction and who are considered handicapped under state or federal law. Sober living homes shall not include the following: (1 ) residential care facilities; (2) any sober living home that operates as a single housekeeping unit.

Mr. Mendez provided credible testimony that Childhelp USA operates a Short- Term Residential Therapeutic Program ("STRTP") that provides short-term care and supervision of children and non-minor dependents, including those children that have been abused, neglected, or are otherwise at risk. Mr. Mendez further testified that Childhelp USA does not constitute a sober living home (as defined by the Municipal Code) nor a state licensed alcohol/drug recovery or treatment center - and Stephouse Recovery, Inc. would not be prohibited from operating or being located within 650' of Childhelp USA's facility at 1597 Baker Street, Costa Mesa. It should be noted that none of the witnesses provided any testimony (in person or in writing) contradicting the operations of Childhelp USA - or otherwise providing any credible evidence that Childhelp USA would, in fact, constitute a sober living home or a state-licensed alcohol/drug recovery or treatment center.

The undersigned has reviewed each of the written policies and procedures submitted by the Applicant, and the undersigned has found insufficient evidence to determine that the Applicant is or has agreed to comply with the requirements of subsections (a)(10) and (a)(l 1) of CMMC §13-3 11.

Specifically, CMMC §13-311(a)(10) provides, in pertinent part, that:
(10) At least 48 hours prior to an occupant's eviction from or involuntary termination of residency in a group home, the operator thereof shall:

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 7 of 10 -
-11-
384
(iii) Notify the city's Network for Homeless Solutions that an occupant is no longer a resident at the home, and determine the services available therefrom.

The Applicant stated in its application that "Due to HIPAA and County Regulations, Stephouse Recovery would not be able to notify any other agency of a resident's status without a signed release of information." The Applicant's statement in the Special Use Permit application, therefore, confirms that there is at least one method of adhering to both CMMC §13-311(a)(10) and HIPAA (e.g., by requiring residents/clients upon admission to the Group Home to sign a release of information authorizing the Applicant to notify the City's Network for Homeless Solutions of an involuntary termination of residency), however, the Applicant falls short of confirming that it would do so - or to enact any other procedure to strictly adhere to the Municipal Code. I
CMMC §13-31 1(a)(l 1) provides, in pertinent part:
(11) Prior to an occupant's eviction from or involuntary termination of residency in a group home, the operator thereof shall also:
(i) Make available to the occupant transportation to the address listed on the occupant's driver license, state-issued identification card, or the permanent address identified in the occupant's application or referral to the group home The Applicant's procedures for "involuntary discharge" do mandate that "Each client should receive a housing resource guide upon discharge...Stephouse Recovery will assist discharged clients in securing safe, temporary shelter in the event of immediate discharge." Moreover, the "Discharge Procedures for Staff" provide that "Should transportation to treatment or a shelter be necessary, Stephouse will provide." However, these do not confirm strict compliance with I The Applicant's "Discharge Procedures for Staff" provides, in pertinent part, that "In the case of homelessness, the appropriate city agency will be contacted to determine if services are available to the client." This procedure, however, does not strictly adhere to the requirement in CMMC §13-31 1(a)(10)(iii) in that it does not explicitly provide for notification to the City's Network for Homeless Solutions that an occupant is no longer a resident at least 48 hours to the eviction or involuntaiy termination of services, nor does it ensure notification and/or identification of the specific client/occupant so that Network Staff may offer services. Rather, it provides that Stephouse Staff will contact "the appropriate city agency...to determine if services are available to the client." While the undersigned appreciates the potential conflicts between the Costa Mesa Municipal Code and HIPAA, as set forth hereinbelow, the Applicant can seek reasonable accommodations to obtain relief from strict compliance with the provisions of Municipal Code Section 13-311(a).

MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 8 of 10 -
-12-
385
Municipal Code Section 13-311(a)(11)(i) in that it does not confirm that transportation would be provided to the occupant's/client's permanent address as listed on that person's driver's license, identification card, or application or referral to the Group Home (in the alternative of providing transportation to "treatment or a shelter".

It should be noted that, pursuant to CMMC § 13-311 (a)(15) :

An applicant may seek relief from the strict application of [CMMC §13-31 1] by submitting an application to the director setting forth specific reasons why accommodation over and above this section is necessary under state and federal laws, pursuant to section 13-200.62.

The procedures outlined in CMMC §13-200.62 allow an applicant to request reasonable accommodations - and, if approved, would allow the City to impose alternative conditions that would satisfy the reasonable accommodation while still achieving the City's objective.

In this instance, however, no evidence has been submitted to the undersigned that the Applicant has submitted an application to the Director pursuant to CMMC §§13-311(a)(15) and 13-200.62 to seek relief from the provisions of Subsections (a)(10) and (a)(l 1) of Section 13-311 of the Municipal Code.

CONCLUSION
The purpose of the public hearing is to receive information from Staff, the Applicant, and the general public "regarding compliance with the applicable provisions of subsections (a) and (b) of [CMMC §13-3 11].

Although the Applicant appears to comply with most provisions of CMMC Section 13-311, subsections (a) and (b) [including the distance requirement from any other sober living home or state-licensed alcohol/drug recovery or treatment centerl, the Applicant does !!9! strictly adhere to subsections (a)(10)(iii) and (a)(11)(i) of CMMC Section 13-311 at this time.

Moreover, although the Applicant may seek relief from these specific requirements in accordance with CMMC Sections 13-311(a)(15) and 13-200.62, there is no evidence that the Applicant has, in fact, sought reasonable accommodations in the manner authorized by the Municipal Code.

Although the review of a Special Use Permit application is a "ministerial matter", pursuant to CMMC §13-311(b), it may only be approved if the Applicant is in compliance with the provisions of CMMC §13-311, subsections (a) and (b). As MEMORANDUM OF EVIDENCE RECEIVED AT Pusuc HEARING #25-01 GROUP HOME SPECIAL USE PERMIT APPLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 9 of 10 -
-13-
386
stated above, the Applicant is not currently in strict compliance with those provisions.

This Memorandum of Evidence is hereby submitted to the Director so that the Director may make a final determination on Special Use Permit application PGSH-24-0002 in accordance with Costa Mesa Municipal Code Section 13-311.

Before making a final determination on the application, the Director (and designees thereof) may, in consideration of this Memorandum, provide the Applicant a final opportunity either (i) to confirm compliance with CMMC Section 13-311, subsections (a) and (b) [and, specifically, Sections 13-311(a)(10)(iii) and (a)(l 1)(1)], or, in the alternative, (ii) to apply for reasonable accommodations and relief from subsections (a)(10)(iii) and (a)(l 1)(i) of Section 13-311 of the Municipal Code.

Hearing Officer and Designee of
Director of Development Services
6 November 2025
Date
MEMORANDUM OF EVIDENCE RECEIVED AT PUBLIC HEARING #25-0 1 GROUP HOME SPECIAL USE PERMIT AE)PLICATION PGSH-24-0002 STEPHOUSE RECOVERY, INC. (1601 BAKER STREET, COSTA MESA) - Page 10 of 10 -
-14-
387
The following policy was revised and approved by Sleplhuuic Rccovery, Inc. 8oard of Directors on 11/24/25
j!llbL//,4RLr/lPa#/l//jVi'i71n% yg4,1@.,f
The client has completed the program when they have used their maximum allotted time or reached their transition goals. Staff will complete a Discharge Form to document the circumstances of the client's departure from sober living. Clients are not required to sign the discharge form.

Staff will complete the Recovery Residence Referral Form with the discharge date, indicate whether the client has completed or is still incomplete, and provide the reason.

The form should be emailed to the OCHCA Gatekeeper within 72 hours of discharge.

Failure to comply with StepHouse policies signed at intake may result in an early administrative termination from the program. Infractions will be documented, and the OCHCA Gatekeeper and Program Monitor will be notified. The client's Probation/Parole Officer will be notified of termination when applicable. In addition, there may be circumstances in which law enforcement is called, and legal action is taken against the client. Residents who have relapsed and are under the influence may be transported to Be Well Orange Campus or College Hospital Costa Mesa.

If a client discharges or is terminated from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity. Clients who are terminated from the program must be sober before they reenter Stephouse property.

Should it be necessary upon discharge, Stephouse Recovery will assist clients in securing safe transportation and/or temporary shelter. Clients will either be assisted with Movidcare Medi-Cal transport or a bus pass to ensure they can reach their discharge destination.

The following new policy Wag revised and approved by T*tph.>ugb rLcovery, //IC, BOardOfD;ibbLuih un fi/28/25
8Affffl jO/iff DISCHARGE POLICY
This policy applies exclusively to clients residing at the Baker Residence in Costa Mesa.

To comply with the City of Costa Mesa's Code of Ordinances, Title 13 - Planning, Zoning and Development, Chapter XV - Group Homes, §13-311 (a)(1 0) & (11 ), Stephouse Recovery staff will adhere to the following protocol:
(1 0) At least 48 hours before a resident's eviction from or involuntary termination of residency at Stephouse Recovery, Stephouse staff will
i. Notify the person designated as the resident's emergency contact or contact of record that the resident will no longer be a resident at the home. -15-
388
ii. Contact the Orange County Health Care Agency QC Links Referral Line and/or another entity designated by the City to determine the services available to the resident, including, but not limited to, alcohol and drug inpatient and outpatient treatment. iii. Notify the city's Network for Homeless Solutions that a client is no longer a resident at the home and determine available services.
iv. Provide the information obtained from paragraphs ii and iii of this subsection (a)(1 0) and any other treatment provider or service to the resident before his or her release on a form provided by the City and obtain the resident's signed acknowledgement. v. Provided, however, that if the resident's behavior results in immediate termination of residency pursuant to rules approved by the City, Stephouse Recovery shall comply with paragraphs i through iv of this subsection (a)(l O) as soon as possible. ('lj) Prior to an resident's eviction from or involuntary termination of residency in a group home, the operator thereof shall also:
i. Make available to the resident, transportation to the address listed on the resident's driver's license, state-issued identification card, or the permanent address identified in the resident's intake form or referral.
ii. Provided, however, that should the resident decline transportation to his or her permanent address or otherwise has no permanent address, then the operator shall make available to the resident transportation to another group home or residential care facility that has agreed to accept the resident.

Please note that all Health Insurance Portability and Accountability Act (HIPAA) privacy laws wi!l be strictly followed. No resident information will be released, shared, or discussed without the resident's written consent. A valid Release of Information (ROI) must be signed by the residents and placed in their client record, authorizing Stephouse Recovery to provide personal information to the City of Costa Mesa or to any other persons, facilities, or providers as specified.

Participation in the Orange County Health Care Agency Recovery Residence Services Program and sober living services is not contingent upon providing this authorization. Clients retain the right to decline to sign the release and may specify limitations on the information Stephouse Recovery may disclose.

The requirements outlined by the City of Costa Mesa do not replace or supersede OCHCA contractual obligations. Rather, they are considered additional steps to be completed at the time of discharge for Stephouse Recovery residents.

Client Discharge Form
Baker House, Costa Mesa
Client Name:

State Issued Identification or Driver's License Number:
-16-
389
Discharge Date:

Client Completed Sober Living Program: € Yes @ NO Client's discharge destination:
-17-
390
E(ONOMIC & DEVELOP MENT S[-RVICL-S D[-PARTl'v'lENT

CITY OF COSTA MESA

INTEROFFICE MEMORANDUM
TO: CITY COUNCIL AND PLANNING COMMISSION
DATE: JANUARY5,2026
SUBJECT: SPECIAL USE PERMIT PGSH-24-0002
This is to advise you that Special Use Permit PGSH-24-0002 was approved on January 5, 2026, to allow a new sober living home with six or fewer persons (not counting the house manager) (Stephouse Recovery Inc.) at 1601 Baker Street. Please feel free to contact me by e-mail at carrie.tai@costamesc'ica.qov if you have any questions or would like further details.

The decision wili become final at 5:00 p.m. on January 12, 2026, unless appealed by an affected party, including filing of the necessary application and payment of the appropriate fee, or called up for review by a member of the City Council. If appealed or called up for review, the project would be reviewed by the Planning Commission.

On October 23, 2025, a duly noticed public hearing was held before the City's Hearing Officer to consider Special Use Permit Application No. PGSH-24-0002, submitted by Stephouse Recovery, Inc., to allow a soberliving home witti six or few persons (not counting the house manager) at 1601 Baker Street. The hearing was conducted pursuant to Costa Mesa Municipal Code Section 13-311, which establishes a ministerial review process for group homes located within the RI Single-Family Residential District. The hearing was held for the purpose of receiving infoi-mation regarding the Applicant's compliance with the applicable provisions of subsections (a) and (b) of Section 13-311.

Following review of the application materials, testimony, and evidence received at the public hearing, the Hearing Officer-acting as the designee of the Director of Development Services-issued a decision on behalf of the Director. As documented in the attached Hearing Officer's Notice of Decision and Memorandum of Evidence, the Applicant has demonstrated compliance with, or has agreed to comply with, all applicable requirements of Costa Mesa Municipal Code Section 13-311(a), and no grounds for denial pursuant to Section 13-311(b) were found. Accordingly, the Special Use Permit was issued as a ministerial action.
77 FAIR DRIVE, POST OFFICE BOX
Biiildnig Safety Division (7 14) 754-5273
Hocising & Corqmui-iity Develoliment (714) 754-4870
1200, COSTA MESA CA 92b28-1200
Commiirutylrnprovement Driyision (714) 754-5638
Plannmg Division (714) 754-5245
www costan"iesaca.gov
jiPaqe
-18-
391
From: Ronn Waters
To: PLANNING INFO
Subject: Application PGSH-24-0002
Date: Thursday, October 9, 2025 11:06:17 AM
Public Notice Comment:

The SUP would make a bad parking situation worse. There is already one Group Home on Baker street and their staff/interns take up a lot of the available street parking. Those of us who actually pay taxes here are not able to park in front of our homes.

The sidewalks of the recovery homes on Royal Palm are littered with cigarette butts. We don't need that on Baker street.

Ronn Waters
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department.

ATTACHMENT 5
-1-
392
From: Ronn Waters
To: PLANNING INFO
Subject: Application PGSH-24-0002
Date: Thursday, October 9, 2025 4:06:22 PM
Why would you put a Sober Living Home next door to a Group Home for Kids. That does not sound helpful nor safe. For either.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -2-
393
From: [email protected]
To: PLANNING INFO
Subject: Official Public Notice: Application No. PGSH-24-0002 Date: Tuesday, October 14, 2025 11:28:06 PM
To whom it may concern:

I received an Official Public Notice regarding application no. PGSH-24-0002 for a sober living house at 1601 Baker Street. The notice states that public comments must be submitted by 12:00 PM on the date of the meeting.

Following are my comments:

I implore the Planning Department not to allow a half way house in the middle of a prime, family, residential community at 1601 Baker Street.

I own property
at Baker and Royal Palm. There are many young and teenage children that walk that section of Baker to access the shopping on Harbor Blvd. None of us want to have a child violated.

The property is listed as having 4 bedrooms and two bathrooms. The application is for 7 adults. This is too many adults in the facility which could lead to problems with the neighbors, parking problems, trash and other conditions caused by over crowding.

There are areas of Costa Mesa that are more suited to sober living, sex offenders and halfway houses.

This residential community is not so suited.

Please do not allow this residential home to be overcrowded and endanger the neighborhood.

Respectfully,
Derek Davis
PO Box 10343
Costa Mesa, CA 92627

NOTICE: This electronic mail message and its contents, including any attachments hereto (collectively, "this e-mail"), is hereby designated as "confidential and proprietary." This e-mail may be viewed and used only by the person to whom it has been sent and his/her employer solely for the express purpose for which it has been disclosed and only in accordance with any confidentiality or non-disclosure (or similar) agreement between TEAC Corporation or its affiliates and said employer, and may not be disclosed to any other person or entity.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any -3-
394
From: [email protected]
To: MENDEZ, VICTOR
Subject: 1601 Baker Street Sober Living Home Permit.

Date: Tuesday, October 21, 2025 3:47:43 PM
Attachments: 1601BakerSoberliving.pdf
Mr. Mendez,
Here is my letter of objection to the proposed sober living home on 1601 Baker Street in Costa Mesa.

I would like to speak to the public hearing on Thursday if possible.

Thanks so much for your time,
Marilyn Scott-Waters
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department.

Marilyn Scott-Waters
1589 Baker Street
Costa Mesa, CA 92626
c. 714 955-7666
[email protected]
-5-
395

To Jeff Harlan and the members of the Costa Mesa Planning Commission.

From Marilyn Scott-Waters
I am writing to express my concern regarding the application for a special use permit, application number PGSH-24-0002 scheduled for the October 23rd meeting. This item pertains to the application for a sober living group home located at 1601 Baker St.

I’m Marilyn Scott-Waters, a resident at 1589 Baker St. which is located 2 doors down from 1601 Baker St. I have been a resident of Costa Mesa since 1962 and have owned a home in Mesa Verde since 1991. I am submitting this letter to object to the approval of any Special Use Permit (SUP) or Reasonable Accommodation (RA) for this address, based on land-use and public-safety concerns under Costa Mesa Municipal Code §13-200 et seq. (Group Homes)

My main concern is that of the compliance with the proposed Group home conflicting with that of the house adjacent to it being another group home. City Ordinance dictates that under California Code, Health and Safety Code - HSC § 1502 section 13 states that group homes, including sober living homes may not be within 650ft of one another measured by its property lines. Also outlined by California Code, Health and Safety Code - HSC § 1502 “Residential facility” means any family home, group care facility, or similar facility determined by the department, for 24-hour nonmedical care of persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the -6-
396
individual.

1597 Baker Street is a group home owned by Childhelp USA.

Childhelp is a private nonprofit psychiatric residential treatment facility also classified as a group home under Short-Term Residential Therapeutic Program (STRTP) as part of the Continuum of Care Reform (CCR). It is a State Licensed Residential Care Facility for Children that provides specialized and intensive care. (License #306000509)
Step House Recovery is a private, for-profit Residential Treatment Center (RTC) that is formally licensed by the State of California's Department of Health Care Services (DHCS) as an Alcoholism or Drug Abuse Recovery or Treatment Facility.

However, under the broad language of the Costa Mesa Municipal Code, the facility and its residents are considered to fall under the category of a "Group Home" for the express purpose of applying city zoning regulations like separation requirements, as its clientele is protected under the federal Fair Housing Act (FHAA) as being disabled.

Both facilities fall under the umbrella of residential care or treatment facilities that the City regulates to prevent over-concentration in residential neighborhoods. Both facilities are listed to cater to and protect a disabled class.

Title 13 Planning, zoning and Development; Chapter XV GROUP HOMES, outlines why the City of Costa Mesa has this charter in place as well as the possible concerns and purpose to having groups homes as follows, “This chapter is intended to preserve the residential character of single-family residential neighborhoods and to further the purposes of -7-
397
the FEHA, the FHAA and the Lanterman Act by, among other things: (1) ensuring that group homes are actually entitled to the special accommodation and/or additional accommodation provided under the Costa Mesa Municipal Code and not simply skirting the city's boarding house regulations; (2) limiting the secondary impacts of group homes by reducing noise and traffic, preserving safety and providing adequate on street parking; (3) providing an accommodation for the handicapped that is reasonable and actually bears some resemblance to the opportunities afforded non-handicapped individuals to use and enjoy a dwelling unit in a single-family neighborhood; and (4) to provide comfortable living environments that will enhance the opportunity for the handicapped and for recovering addicts to be successful in their programs.” These 4 main sections help us outline the concerns brought on by group homes within the City of Costa Mesa.

Another concern of mine is that of how these neighboring facilities would cause harm to one another due to congestion of the parking as well as not taking into consideration how much traffic passes through this street on a daily basis. We have roughly 3,250 cars as outlined on the Costa Mesa city government's website with its Average Daily Traffic map. The increased volume of parking by either residents or social workers would further congest traffic as well as street parking on our busy street.

A further concern is the number of sober living homes that are currently already in the City of Costa Mesa. ORDINANCE NO. 17-06 also states “it is estimated that the City of Costa Mesa is home to 1,748 alcohol and drug recovery beds, divided as follows: 63 state licensed residential facilities/certified alcohol and drug programs in residential -8-
398
zones with six or fewer occupants, providing 352 beds; 19 state licensed facilities with seven or more occupants providing 269 beds; 97 unlicensed sober living homes in all residential zones, providing 1,127 beds; included in those 97 homes are 10 homes that have been issued Special Use Permits per the R1 Ordinance, providing 60 beds; and 1 approved CUP application per the MFR Ordinance, providing 11 beds; 3 WHEREAS, the City of Costa Mesa is currently home to almost 29% of the state licensed residential drug and alcohol treatment facilities in Orange County, while the City holds 3.6% of the County’s population; thus, it is reasonable to infer that unlicensed sober living homes are locating in the City at a higher concentration than in nearby communities” outlining the sheer number of sober living homes within the City of Costa Mesa.

In closing, I respectfully ask the Planning Commission to thoroughly review the application for Application number PGSH-24-002 regarding the proposed sober living group home on 1601 Baker Street.

Furthermore I have attached several images to depict both the location of the proposed group home in relation to the current group home on Baker Street, also alongside the OC traffic data for that section of Baker St.

Thank you for your time, Marilyn Scott-Waters.
714 955-7666
1589 Baker Street
Costa Mesa, CA 92626
-9-
399
-10-
400
-11-
401
From: George V
To: PLANNING INFO
Cc: Mary Wilcox
Subject: Hearing For Application No. PGSH-24-0002 For 1601 Baker St Date: Tuesday, October 21, 2025 5:32:17 PM
Attachments: 2025-10-21_051973-3.jpg
2025-10-21_051973-4.jpg
2025-10-21_051973-5.jpg
2025-10-21_051973-2.jpg
2025-10-21_051973-1.jpg
Dear Hearing Officer
Please find attached documents I would like to introduce for our hearing scheduled for October 23rd, at 4pm.

Sincerely
George Vilagut
CEO
StepHouse Recovery
714 394 3494
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -12-
402
-13-
403
-14-
404
-15-
405
-16-
406
-17-
407
From: Theresa Parra
To: PLANNING INFO
Subject: Opposition to Continued Use of Special Use Permit for 1601 Sober Living Home Date: Tuesday, October 21, 2025 8:50:58 PM
To Whom It May Concern,
I am writing to express my strong opposition to the continued use of the Special Use Permit for the single-unit sober living home located at 1601 Baker Street Costa Mesa, CA 92626.

This home is not being operated in accordance with the permit requirements. Most notably, it lacks a live-in, on-site house manager — a critical condition for maintaining the safety, supervision, and structure such a facility requires.

As a direct neighbor of this property, I can say with certainty that it has significantly impacted the safety and well-being of our residential neighborhood. The tenants, many of whom possibly have criminal records and known histories of substance abuse, have contributed to an increasingly unsafe environment. Our neighborhood includes families with young children, schools, parks, and churches within a one-mile radius — all of which should be protected and preserved as safe community spaces.

We have experienced several concerning incidents tied to individuals associated with the property at 1601, including but not limited to:

An attempted break-in at my home by a man clearly under the influence, barefoot, who repeatedly tried to enter through our front door and attempted to scale our backyard gate. He was arrested shortly thereafter, in front of 1601.

A man visiting a resident of 1601 jumped over our back wall in an attempt to flee when the facility director finally arrived for a check-in.

A visitor and resident were found passed out in a vehicle that was slowly rolling in front of our driveway.

Numerous police and emergency medical responses to the property.

Ongoing suspicious activity involving individuals loitering in front of and across the street from 1601, whom are visiting residents of 1601.

Impact of parking in a residential area, directly impacting neighboring homes These are not isolated incidents. The presence and operations of this home are creating a persistent and escalating safety concern for our neighborhood. Families, including mine, no longer feel comfortable spending time in front of our own homes with our children. We are -18-
408
constantly concerned about our personal safety, our children's safety, and the security of our property.

I respectfully urge you to reconsider the approval or renewal of the Special Use Permit for 1601. The current operation of this facility is not in compliance and is proving harmful to the surrounding community.

Thank you for your time and attention to this serious matter.

Sincerely,
Concerned Resident of Baker Street

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -19-
409
From: [email protected]
To: GREEN, BRENDA
Cc: MENDEZ, VICTOR
Subject: Request for denial for 1601 Baker St Sober Living Home Date: Wednesday, October 22, 2025 9:09:27 PM
Attachments: Request for denial for 1601 Baker St Sober Living Home.pdf Ms. Green, hello,
This is my planned “three minutes” for tomorrow’s request for a Special Use Permit that is being heard this Thursday, October 23, 2025 at the Public Hearing.

If you could send it out to the commissioners so that they have a chance to read it before the meeting that would be most appreciated.

Thanks so much,
Marilyn Scott-Waters
Costa Mesa resident.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department.

Marilyn Scott-Waters
1589 Baker Street
Costa Mesa, CA 92626
c. 714 955-7666
[email protected]
-20-
410
Rebuttal to the Application for a License for a Sober Living Home at 1601 Baker Street Marilyn Scott-Waters
Good afternoon, honorable Planning Commission Members,
In the Land Use Element which is the Costa Mesa General Plan for our city, it promises to maintain and enhance the great quality of life in Costa Mesa is the foundation of this General Plan.

The City will also protect and enhance neighborhoods throughout Costa Mesa to ensure these largely residential areas continue to provide value to residents and the community as whole.

Foremost, attention will be given to protecting the character and quality of residential neighborhoods.” Objective LU-1A. Establish and maintain a balance of land uses throughout the community to preserve the residential
character of the City at a level no greater than can be supported by the infrastructure.

So Mesa Verde residents are promised that the City will protect the character and quality of our neighborhood.

While having one group home (Short Term Residential Therapeutic Program) on 1597 Baker Street can be a challenge, it is an acceptable impact on our quality of life as good neighbors. However, having two special use homes, right next door to other, even though they are classified differently, is an unfair burden on Baker Street residents. I was told that the 650 feet distance law only applies to sober living homes but the projected uses of both houses are essentially the same thing, that is to say, 24 hour care residential facilities.

The only discernible difference between the two facilities I could find was that Childhelp Inc is a state licensed non-profit and Stephouse Recovery, while licensed, is privately owned.

There is no difference between the uses of these two homes besides the specific protected classes that they accommodate. The impact is the same. The two residential facilities bring the same amount of traffic, noise and parking congestion.

An ordinance passed by the Orange County Planning Commission reads, “Responsibly-operated homes provide a societal benefit, but over-concentration can lead to the “institutionalization and commercialization” of single-family neighborhoods. Individuals and families often purchase homes in single-family neighborhoods for the tranquility and safety that accompanies such neighborhoods and with the expectation of establishing close and long-standing ties with their neighbors.” I ask that the Planning Commission keep the City’s promise as stated in the the Costa Mesa General Plan, to continue to maintain the quality of life for the residents of Baker Street. -21-
411
I believe the burden of proof to deny this project is evident in our City's general plan. These uses are incompatible within proximity to each other. Moreover, the letter and spirit of the law calls for a balance of use, density and intensity that does not appear evident here. Again, I respectfully request that you deny this project.

Thank you for your time.

Marilyn Scott-Waters
1589 Baker Street
Costa Mesa, CA 92626
-22-
412
From: Wyatt Russell
To: PLANNING INFO
Subject: PGSH-24-0002 Public Comment
Date: Thursday, October 23, 2025 11:16:04 AM
Attachments: Written Public Comment PGSH-24-0002.pdf
Hi Victor,
Here is my public comment for PGSH-24-0002. Please see attached. Thank you, and see you this afternoon.

Wyatt
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -23-
413
Written Public Comment – Special Use Permit Application PGSH-24-0002 1601 Baker Street, Costa Mesa
Submitted and Written By: Wyatt Russell
Date: 10-23-2025
To: City of Costa Mesa – Planning Division / Hearing Officer – [email protected] Introduction
Sober-living homes can serve an important role in supporting individuals in recovery when they are professionally managed, transparent, and accountable. Unfortunately, across Southern California — including right here in Costa Mesa — many operators have repeatedly exploited the system by opening homes first and seeking permission later, or by providing misleading information to obtain approvals they do not intend to follow.

It was precisely this pattern of unregulated and misrepresented operations that led the City to adopt Municipal Code §13-311, requiring sober- living operators to obtain a Special Use Permit, maintain spacing from other facilities, and demonstrate a verifiable record of compliance and reliability. These safeguards exist not to discourage recovery housing, but to protect residents, neighbors, and the integrity of the permitting process.

The current application for 1601 Baker Street, submitted by StepHouse Recovery Inc. and its owner George Vilagut, exemplifies the type of conduct §13-311 was designed to prevent. The record reveals multiple red flags, including:
• Operating or advertising before obtaining permits;
• Submitting unverified claims of governmental oversight; and • A lengthy history of litigation and regulatory actions across multiple jurisdictions.

For these reasons, and as a neighboring homeowner directly affected by this proposal, I respectfully urge the City to deny or continue this application until these issues are fully verified and resolved.

1. Repeated History of Operating Before Permits Are Granted StepHouse Recovery has an established pattern of activating homes prior to receiving City authorization. -24-
414
a. Fountain Valley Example:

Valley. Yet Fountain Valley’s own public permit tracker still lists that address as “Pending – No Permit Issued. ” This demonstrates that StepHouse began representing the site as operational without ever receiving local approval.

The seriousness of this behavior is underscored by public police records from the Fountain Valley Police Department, which show multiple incident responses at 17981 Los Tiempos Street between April 2023 and December 2024. Calls included a 9-1-1 text, violation of court order, “keep the peace” request, and citizen assist — all occurring while the home’s city permit remained “pending” and unapproved.

This clearly demonstrates the real-world consequences of allowing a sober-living facility to operate without oversight or enforcement.

It also further establishes a pattern of noncompliance by StepHouse Recovery and Mr. Vilagut across jurisdictions. b. 1601 Baker Street (Costa Mesa):

The same pattern of operating without a permit now appears here. On page 146, StepHouse submitted a nearly identical County “Certificate of Compliance” dated September 4, 2024 for the Baker Street address. That certificate lists StepHouse Recovery as an active facility, clearly implying ongoing use.

Under CMMC §13-311(E):
“No group home shall operate, advertise, or accept residents prior to approval of a Special Use Permit pursuant to this sectio n .” The existence of that certificate and present-tense language in the application constitute direct evidence of operation or advertisement prior to approval, in violation of this ordinance. Furthermore, performing the same act in Fountain Valley — a city that also has the permit listed as pending — proves this is a repeated business practice, not a one-time misunderstanding.

By law, the City cannot retroactively authorize or excuse an unpermitted operation. Doing so would nullify §13-311’s enforcement intent and invite every operator to open first and legalize later.

2. City Cannot Verify 650-Foot Separation Compliance
CMMC §13-311(D) requires that group homes be at least 650 feet apart, measured parcel-line to parcel-line. The staff packet includes only a spreadsheet of known facilities, not a verified map showing actual distances. That list omits homes operating without permits — precisely the kind of situation StepHouse has created.
-25-
415
If StepHouse has already been operating at 1601 Baker, it is entirely plausible that other unlicensed sober-living residences within 650 feet are also active. Without verified GIS measurement and field inspection, the City cannot make the legally required finding that this facility satisfies §13-311(D).

Approving the permit without that confirmation would render the spacing rule unenforceable and create grounds for future inconsistent applications.

3. Litigation and Enforcement History Demonstrates Unreliability StepHouse Recovery Inc. and George Vilagut have been named in at least ten civil cases across Orange and Los Angeles Counties since 2015, including:
• City of Huntington Beach v. StepHouse Recovery Inc. (2018) – municipal nuisance enforcement; • People ex rel. City of Fountain Valley v. StepHouse Recovery Inc. (2015) – unpermitted sober-living operation; • Philadelphia Indemnity Ins. Co. v. StepHouse Recovery Inc. & Vilagut (U.S. District Court 2018) – $1 million judgment for wrongful death from overdose;
• Additional debt and employment cases (Creditors Adjustment Bureau 2019; De Lage Landen 2022; Collins 2016, etc.).

This pattern of lawsuits and enforcement shows chronic operational and financial instability — the opposite of the “responsibility and reliability” required under §13-311(G)(3)(b) and §13-311(I)(1)(h).

4. Unverified Claims of Government Oversight
The application claims that StepHouse is “contracted with the Orange County Health Care Agency” and “certified annually by the Orange County Sheriff’s Department. ” No verification was submitted.

Under §13-311(I)(1)(f), any false or misleading information is grounds for denial or continuation.

If such contracts exist, the City should demand official documentation; otherwise, the claim should be deemed unsubstantiated. -26-
416

5. Administrative Instability
Secretary of State records show StepHouse Recovery Inc. was suspended multiple times between 2013 and 2018 for failing to file required Statements of Information and pay state fees.

Although reinstated later, these suspensions reinforce a longstanding pattern of regulatory neglect consistent with the incomplete nature of this application.

6. Parking and Garage Requirements
Under §13-311(G)(2)(b) and R-1 zoning, the property must maintain two enclosed off-street parking spaces. Garages cannot be converted into bedrooms, offices, or storage. The application does not confirm that these spaces remain available for vehicles, leaving compliance uncertain.

7. Collective Pattern and Required Action
Viewed together, the evidence establishes a consistent pattern of:
• Operating and advertising before permits (Costa Mesa and Fountain Valley). • Unverifiable spacing due to likely unlicensed neighboring homes. • Multiple lawsuits and enforcement actions.
• Unsupported oversight claims.
• Ongoing administrative instability.

Each issue individually justifies continuation; together, they make approval indefensible under §13-311(G) and §13-311(I).

Requested Actions
I respectfully request that the Hearing Officer deny or, at minimum, continue this application until the City:

1. Produces a verified parcel-based spacing map confirming compliance with §13-311(D).

2. Obtains independent verification of any claimed County or Sheriff certifications.

3. Reviews the applicant’s complete litigation and compliance history.

4. Conducts a site inspection verifying that the garage remains dedicated to vehicle parking. -27-
417

5. Confirms whether StepHouse has already operated or advertised the 1601 Baker Street property, in violation of §13-311(E).

Conclusion
The City’s group-home ordinance exists to ensure that recovery facilities operate transparently, lawfully, and responsibly. The record here shows the opposite — an operator with a repeated pattern of premature operation, unverified claims, and legal instability.

For these reasons, I urge the City to deny or continue this Special Use Permit until all facts are independently verified and compliance with §13- 311 is proven.

Thank you for your consideration and for protecting the integrity of Costa Mesa’s neighborhoods and permitting process.

Sincerely,
Wyatt Russell

Attachments:
• Exhibit A: Litigation Summary Table
• Exhibit B: OC Certificate of Compliance – Costa Mesa (9-4-24) • Exhibit C: OC Certificate of Compliance – Fountain Valley (7-25-23) • Exhibit D: Relevant Excerpts – CMMC §13-311
• Exhibit E: Secretary of State Entries

-28-
418
Exhibit A – Litigation Summary Table
# Case Number Title / Parties Court / County Year
Filed Case Type / Issue Status / Notes
1 30-2018-01025168-

CU-MC-CJC
City of Huntington Beach v. StepHouse
Recovery Inc.

Orange County
Superior Court 2018 City nuisance & code-
enforcement action
Resolved after extended proceedings
– enforcement case
2 30-2015-00808238-

CU-MC-CJC
People ex rel. City of Fountain Valley v.

StepHouse Recovery Inc.

Orange County
Superior Court 2015 City enforcement (unpermitted
sober living home) Resolved after City action
3 8:18-cv-00564-JVS-
JDE
Philadelphia Indemnity Ins. Co. v.

StepHouse Recovery Inc. & Vilagut U.S. Dist. Ct., C.D. Cal. 2018 Insurance / wrongful-death claim Judgment for Plaintiff ($1 million + interest)
4 30-2019-01053575-

CU-BC-CJC
Creditors Adjustment Bureau v. StepHouse
Recovery Inc.

Orange County
Superior Court 2019 Collections / contract debt Judgment for creditor (confirmed record)
5 30-2022-01282982-

CL-BC-CJC
De Lage Landen Financial Services v.

StepHouse Recovery Inc.

Orange County
Superior Court 2022 Contract / lease default Active / judgment for Plaintiff likely 6 30-2016-00838023-

CU-OE-CXC
Kenneth Collins v. StepHouse Recovery
Inc.

Orange County
Superior Court 2016 Employment / labor Settled or dismissed 7 30-2016-00856449-
CU-PP-NJC Michael Barker v. George Vilagut Orange County Superior Court 2016 Personal petition / dispute Closed
8 BC630332 Alta Centers Inc. et al v. Health Net Inc. et al
Los Angeles County
Superior Court 2016 Insurance / rehab industry case
(listed affiliate) Closed
9 30-2018-01025168
(related)
City of Huntington Beach v. StepHouse
Recovery Inc.

Orange County
Superior Court 2018 Duplicate record entry –
10 30-2015-00808238
(related) People v. StepHouse Recovery Inc. Orange County Superior Court 2015 City enforcement duplicate –
Source: Orange County and Federal court records; case numbers confirmed via public dockets. -29-
419
Exhibits B and C: OC Certificate of Compliance (Issued Well Before Local City Permit)

-30-
420
Exhibit D – Relevant Excerpts from the Costa Mesa Municipal Code (Section 13-311) Group Homes, Including Sober-Living Homes
Section 13-311 (A) – Purpose and Intent
The purpose of this section is to ensure that group homes, including sober-living homes, operate in a manner that is compatible with surrounding residential uses and consistent with applicable laws. The City intends to preserve the residential character of neighborhoods while providing opportunities for housing individuals with disabilities and those in recovery.

Section 13-311 (B) – Applicability
This section applies to all group homes and sober-living homes located in the R-1 and R-2 residential zoning districts and to any facility providing residential living arrangements for persons recovering from drug or alcohol addiction who are not under the supervision of a licensed medical professional.

Section 13-311 (C) – Definitions (Selected)
“Group Home” means a dwelling unit occupied by persons living together in a single housekeeping unit who are not related by blood, marriage, or legal adoption and who receive supportive care or supervision. “Sober-Living Home” means a group home providing a supportive residential environment for persons recovering from drug or alcohol addiction, which does not include on-site medical detoxification or treatment services. “Operator” means any person or entity responsible for the management, maintenance, or oversight of a group home. “Resident” means any person living on the premises as part of the program, whether permanently or temporarily.

Section 13-311 (D) – Separation Requirement
A group home shall not be located within 650 feet, measured parcel-line to parcel-line, of any other group home, licensed treatment facility, or sober- living home.

Section 13-311 (E) – Permit Required
No group home shall operate, advertise, or accept residents prior to approval of a Special Use Permit pursuant to this section.

Operation of a group home without an approved permit shall constitute a violation of this Code and is subject to enforcement action, including denial or revocation of any subsequent permit.

Section 13-311 (F) – Application Requirements (Selected) -31-
421
Each application for a Special Use Permit shall include:
(1) A detailed management and operations plan;
(2) Evidence of compliance with building, fire, and health codes; (3) A parking plan showing availability of required spaces; (4) Certification of insurance coverage; and
(5) Contact information for the property owner and on-site manager. (Note: The application at 1601 Baker St. appears to omit or inadequately substantiate several of these required elements.) Section 13-311 (G) – Development and Operating Standards (Selected) (1) Each facility shall comply with all applicable health, safety, and building codes. (2)(b) Each group home located in the R-1 zone shall maintain two enclosed off-street parking spaces and may not convert those spaces to bedrooms, offices, storage, or meeting rooms.
(3)(b) In reviewing applications, the City shall consider the reliability and responsibility of the operator, including compliance history with applicable laws and regulations, and may deny the application if the operator’s record demonstrates a lack of such reliability.

Section 13-311 (I) – Findings and Grounds for Denial (Selected) A Special Use Permit may be denied, revoked, or suspended if any of the following are found:
(1)(f) The applicant has provided false, misleading, or incomplete information in the application or during the review process. (1)(h) The applicant or operator has a history of violations or enforcement actions under federal, state, or local law related to group homes or similar facilities.
(1)(i) The use, as proposed, would be detrimental to the public health, safety, or welfare of the neighborhood or inconsistent with the residential character of the area.

Section 13-311 (J) – Enforcement
Any violation of this section shall constitute a public nuisance and may be subject to fines, criminal prosecution, and revocation of any permit.

Each day of unpermitted operation constitutes a separate violation.

Section 13-311 (K) – Revocation
-32-
422
The City may revoke a Special Use Permit if the operator fails to comply with the conditions of approval, operates contrary to the representations made in the application, or otherwise violates the provisions of this Code.

Summary of Relevance
The provisions above clearly establish that:

1. A permit must be obtained before operation, advertisement, or accepting residents (Section 13-311 E).

2. Homes must be separated by at least 650 feet (Section 13-311 D).

3. Operators must demonstrate reliability, compliance history, and maintain required parking (Section 13-311 G).

4. False information, prior violations, or detrimental impacts are legal grounds for denial (Section 13-311 I).

5. Operating without approval is a public nuisance subject to enforcement (Section 13-311 J).

Exhibit E: Secretary of State Entries

-33-
423
From: Kristin Auslander
To: PLANNING INFO
Subject: Public Comment for PGSH-24-0002
Date: Thursday, October 23, 2025 11:18:30 AM
Attachments: Written Public Comment PGSH-24-0002.pdf
Dear Planning Commission,
Attached is my public comment for PGSH-24-0002.

Thank You.
-Kristin
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -34-
424
Written Public Comment – Special Use Permit Application PGSH-24-0002 1601 Baker Street, Costa Mesa
Submitted and Written By: Wyatt Russell
Date: 10-23-2025
To: City of Costa Mesa – Planning Division / Hearing Officer – [email protected] Introduction
Sober-living homes can serve an important role in supporting individuals in recovery when they are professionally managed, transparent, and accountable. Unfortunately, across Southern California — including right here in Costa Mesa — many operators have repeatedly exploited the system by opening homes first and seeking permission later, or by providing misleading information to obtain approvals they do not intend to follow.

It was precisely this pattern of unregulated and misrepresented operations that led the City to adopt Municipal Code §13-311, requiring sober- living operators to obtain a Special Use Permit, maintain spacing from other facilities, and demonstrate a verifiable record of compliance and reliability. These safeguards exist not to discourage recovery housing, but to protect residents, neighbors, and the integrity of the permitting process.

The current application for 1601 Baker Street, submitted by StepHouse Recovery Inc. and its owner George Vilagut, exemplifies the type of conduct §13-311 was designed to prevent. The record reveals multiple red flags, including:
• Operating or advertising before obtaining permits;
• Submitting unverified claims of governmental oversight; and • A lengthy history of litigation and regulatory actions across multiple jurisdictions.

For these reasons, and as a neighboring homeowner directly affected by this proposal, I respectfully urge the City to deny or continue this application until these issues are fully verified and resolved.

1. Repeated History of Operating Before Permits Are Granted StepHouse Recovery has an established pattern of activating homes prior to receiving City authorization. -35-
425
a. Fountain Valley Example:

Valley. Yet Fountain Valley’s own public permit tracker still lists that address as “Pending – No Permit Issued. ” This demonstrates that StepHouse began representing the site as operational without ever receiving local approval.

The seriousness of this behavior is underscored by public police records from the Fountain Valley Police Department, which show multiple incident responses at 17981 Los Tiempos Street between April 2023 and December 2024. Calls included a 9-1-1 text, violation of court order, “keep the peace” request, and citizen assist — all occurring while the home’s city permit remained “pending” and unapproved.

This clearly demonstrates the real-world consequences of allowing a sober-living facility to operate without oversight or enforcement.

It also further establishes a pattern of noncompliance by StepHouse Recovery and Mr. Vilagut across jurisdictions. b. 1601 Baker Street (Costa Mesa):

The same pattern of operating without a permit now appears here. On page 146, StepHouse submitted a nearly identical County “Certificate of Compliance” dated September 4, 2024 for the Baker Street address. That certificate lists StepHouse Recovery as an active facility, clearly implying ongoing use.

Under CMMC §13-311(E):
“No group home shall operate, advertise, or accept residents prior to approval of a Special Use Permit pursuant to this sectio n .” The existence of that certificate and present-tense language in the application constitute direct evidence of operation or advertisement prior to approval, in violation of this ordinance. Furthermore, performing the same act in Fountain Valley — a city that also has the permit listed as pending — proves this is a repeated business practice, not a one-time misunderstanding.

By law, the City cannot retroactively authorize or excuse an unpermitted operation. Doing so would nullify §13-311’s enforcement intent and invite every operator to open first and legalize later.

2. City Cannot Verify 650-Foot Separation Compliance
CMMC §13-311(D) requires that group homes be at least 650 feet apart, measured parcel-line to parcel-line. The staff packet includes only a spreadsheet of known facilities, not a verified map showing actual distances. That list omits homes operating without permits — precisely the kind of situation StepHouse has created.
-36-
426
If StepHouse has already been operating at 1601 Baker, it is entirely plausible that other unlicensed sober-living residences within 650 feet are also active. Without verified GIS measurement and field inspection, the City cannot make the legally required finding that this facility satisfies §13-311(D).

Approving the permit without that confirmation would render the spacing rule unenforceable and create grounds for future inconsistent applications.

3. Litigation and Enforcement History Demonstrates Unreliability StepHouse Recovery Inc. and George Vilagut have been named in at least ten civil cases across Orange and Los Angeles Counties since 2015, including:
• City of Huntington Beach v. StepHouse Recovery Inc. (2018) – municipal nuisance enforcement; • People ex rel. City of Fountain Valley v. StepHouse Recovery Inc. (2015) – unpermitted sober-living operation; • Philadelphia Indemnity Ins. Co. v. StepHouse Recovery Inc. & Vilagut (U.S. District Court 2018) – $1 million judgment for wrongful death from overdose;
• Additional debt and employment cases (Creditors Adjustment Bureau 2019; De Lage Landen 2022; Collins 2016, etc.).

This pattern of lawsuits and enforcement shows chronic operational and financial instability — the opposite of the “responsibility and reliability” required under §13-311(G)(3)(b) and §13-311(I)(1)(h).

4. Unverified Claims of Government Oversight
The application claims that StepHouse is “contracted with the Orange County Health Care Agency” and “certified annually by the Orange County Sheriff’s Department. ” No verification was submitted.

Under §13-311(I)(1)(f), any false or misleading information is grounds for denial or continuation.

If such contracts exist, the City should demand official documentation; otherwise, the claim should be deemed unsubstantiated. -37-
427

5. Administrative Instability
Secretary of State records show StepHouse Recovery Inc. was suspended multiple times between 2013 and 2018 for failing to file required Statements of Information and pay state fees.

Although reinstated later, these suspensions reinforce a longstanding pattern of regulatory neglect consistent with the incomplete nature of this application.

6. Parking and Garage Requirements
Under §13-311(G)(2)(b) and R-1 zoning, the property must maintain two enclosed off-street parking spaces. Garages cannot be converted into bedrooms, offices, or storage. The application does not confirm that these spaces remain available for vehicles, leaving compliance uncertain.

7. Collective Pattern and Required Action
Viewed together, the evidence establishes a consistent pattern of:
• Operating and advertising before permits (Costa Mesa and Fountain Valley). • Unverifiable spacing due to likely unlicensed neighboring homes. • Multiple lawsuits and enforcement actions.
• Unsupported oversight claims.
• Ongoing administrative instability.

Each issue individually justifies continuation; together, they make approval indefensible under §13-311(G) and §13-311(I).

Requested Actions
I respectfully request that the Hearing Officer deny or, at minimum, continue this application until the City:

1. Produces a verified parcel-based spacing map confirming compliance with §13-311(D).

2. Obtains independent verification of any claimed County or Sheriff certifications.

3. Reviews the applicant’s complete litigation and compliance history.

4. Conducts a site inspection verifying that the garage remains dedicated to vehicle parking. -38-
428

5. Confirms whether StepHouse has already operated or advertised the 1601 Baker Street property, in violation of §13-311(E).

Conclusion
The City’s group-home ordinance exists to ensure that recovery facilities operate transparently, lawfully, and responsibly. The record here shows the opposite — an operator with a repeated pattern of premature operation, unverified claims, and legal instability.

For these reasons, I urge the City to deny or continue this Special Use Permit until all facts are independently verified and compliance with §13- 311 is proven.

Thank you for your consideration and for protecting the integrity of Costa Mesa’s neighborhoods and permitting process.

Sincerely,
Wyatt Russell

Attachments:
• Exhibit A: Litigation Summary Table
• Exhibit B: OC Certificate of Compliance – Costa Mesa (9-4-24) • Exhibit C: OC Certificate of Compliance – Fountain Valley (7-25-23) • Exhibit D: Relevant Excerpts – CMMC §13-311
• Exhibit E: Secretary of State Entries

-39-
429
Exhibit A – Litigation Summary Table
# Case Number Title / Parties Court / County Year
Filed Case Type / Issue Status / Notes
1 30-2018-01025168-

CU-MC-CJC
City of Huntington Beach v. StepHouse
Recovery Inc.

Orange County
Superior Court 2018 City nuisance & code-
enforcement action
Resolved after extended proceedings
– enforcement case
2 30-2015-00808238-

CU-MC-CJC
People ex rel. City of Fountain Valley v.

StepHouse Recovery Inc.

Orange County
Superior Court 2015 City enforcement (unpermitted
sober living home) Resolved after City action
3 8:18-cv-00564-JVS-
JDE
Philadelphia Indemnity Ins. Co. v.

StepHouse Recovery Inc. & Vilagut U.S. Dist. Ct., C.D. Cal. 2018 Insurance / wrongful-death claim Judgment for Plaintiff ($1 million + interest)
4 30-2019-01053575-

CU-BC-CJC
Creditors Adjustment Bureau v. StepHouse
Recovery Inc.

Orange County
Superior Court 2019 Collections / contract debt Judgment for creditor (confirmed record)
5 30-2022-01282982-

CL-BC-CJC
De Lage Landen Financial Services v.

StepHouse Recovery Inc.

Orange County
Superior Court 2022 Contract / lease default Active / judgment for Plaintiff likely 6 30-2016-00838023-

CU-OE-CXC
Kenneth Collins v. StepHouse Recovery
Inc.

Orange County
Superior Court 2016 Employment / labor Settled or dismissed 7 30-2016-00856449-
CU-PP-NJC Michael Barker v. George Vilagut Orange County Superior Court 2016 Personal petition / dispute Closed
8 BC630332 Alta Centers Inc. et al v. Health Net Inc. et al
Los Angeles County
Superior Court 2016 Insurance / rehab industry case
(listed affiliate) Closed
9 30-2018-01025168
(related)
City of Huntington Beach v. StepHouse
Recovery Inc.

Orange County
Superior Court 2018 Duplicate record entry –
10 30-2015-00808238
(related) People v. StepHouse Recovery Inc. Orange County Superior Court 2015 City enforcement duplicate –
Source: Orange County and Federal court records; case numbers confirmed via public dockets. -40-
430
Exhibits B and C: OC Certificate of Compliance (Issued Well Before Local City Permit)

-41-
431
Exhibit D – Relevant Excerpts from the Costa Mesa Municipal Code (Section 13-311) Group Homes, Including Sober-Living Homes
Section 13-311 (A) – Purpose and Intent
The purpose of this section is to ensure that group homes, including sober-living homes, operate in a manner that is compatible with surrounding residential uses and consistent with applicable laws. The City intends to preserve the residential character of neighborhoods while providing opportunities for housing individuals with disabilities and those in recovery.

Section 13-311 (B) – Applicability
This section applies to all group homes and sober-living homes located in the R-1 and R-2 residential zoning districts and to any facility providing residential living arrangements for persons recovering from drug or alcohol addiction who are not under the supervision of a licensed medical professional.

Section 13-311 (C) – Definitions (Selected)
“Group Home” means a dwelling unit occupied by persons living together in a single housekeeping unit who are not related by blood, marriage, or legal adoption and who receive supportive care or supervision. “Sober-Living Home” means a group home providing a supportive residential environment for persons recovering from drug or alcohol addiction, which does not include on-site medical detoxification or treatment services. “Operator” means any person or entity responsible for the management, maintenance, or oversight of a group home. “Resident” means any person living on the premises as part of the program, whether permanently or temporarily.

Section 13-311 (D) – Separation Requirement
A group home shall not be located within 650 feet, measured parcel-line to parcel-line, of any other group home, licensed treatment facility, or sober- living home.

Section 13-311 (E) – Permit Required
No group home shall operate, advertise, or accept residents prior to approval of a Special Use Permit pursuant to this section.

Operation of a group home without an approved permit shall constitute a violation of this Code and is subject to enforcement action, including denial or revocation of any subsequent permit.

Section 13-311 (F) – Application Requirements (Selected) -42-
432
Each application for a Special Use Permit shall include:
(1) A detailed management and operations plan;
(2) Evidence of compliance with building, fire, and health codes; (3) A parking plan showing availability of required spaces; (4) Certification of insurance coverage; and
(5) Contact information for the property owner and on-site manager. (Note: The application at 1601 Baker St. appears to omit or inadequately substantiate several of these required elements.) Section 13-311 (G) – Development and Operating Standards (Selected) (1) Each facility shall comply with all applicable health, safety, and building codes. (2)(b) Each group home located in the R-1 zone shall maintain two enclosed off-street parking spaces and may not convert those spaces to bedrooms, offices, storage, or meeting rooms.
(3)(b) In reviewing applications, the City shall consider the reliability and responsibility of the operator, including compliance history with applicable laws and regulations, and may deny the application if the operator’s record demonstrates a lack of such reliability.

Section 13-311 (I) – Findings and Grounds for Denial (Selected) A Special Use Permit may be denied, revoked, or suspended if any of the following are found:
(1)(f) The applicant has provided false, misleading, or incomplete information in the application or during the review process. (1)(h) The applicant or operator has a history of violations or enforcement actions under federal, state, or local law related to group homes or similar facilities.
(1)(i) The use, as proposed, would be detrimental to the public health, safety, or welfare of the neighborhood or inconsistent with the residential character of the area.

Section 13-311 (J) – Enforcement
Any violation of this section shall constitute a public nuisance and may be subject to fines, criminal prosecution, and revocation of any permit.

Each day of unpermitted operation constitutes a separate violation.

Section 13-311 (K) – Revocation
-43-
433
The City may revoke a Special Use Permit if the operator fails to comply with the conditions of approval, operates contrary to the representations made in the application, or otherwise violates the provisions of this Code.

Summary of Relevance
The provisions above clearly establish that:

1. A permit must be obtained before operation, advertisement, or accepting residents (Section 13-311 E).

2. Homes must be separated by at least 650 feet (Section 13-311 D).

3. Operators must demonstrate reliability, compliance history, and maintain required parking (Section 13-311 G).

4. False information, prior violations, or detrimental impacts are legal grounds for denial (Section 13-311 I).

5. Operating without approval is a public nuisance subject to enforcement (Section 13-311 J).

Exhibit E: Secretary of State Entries

-44-
434
12'-3"
11'
BEDROOM#4
BEDROOM#5
BEDROOM#3
BEDROOM#2
BEDROOM#1

KITCHEN
LIVING
ROOM
DINING
PROPERTY LINE = 67'
PROPERTY LINE = 103'
GARAGE
7' GATE
7'' BLOCK WALL FENCE

PCC CITY SIDEWALK

EASEMENT

BAKER ST
A0
='1'
40'
1 VICINITY MAP

PROJECT DATA

PLAN SHEETS
ATTACHMENT 6
-1-
435
12'-3"
11'
BEDROOM#4
BEDROOM#5
BEDROOM#3
BEDROOM#2
BEDROOM#1

KITCHEN
LIVING
ROOM
DINING
PROPERTY LINE = 67'
PROPERTY LINE = 103'
GARAGE
7' GATE
7'' BLOCK WALL FENCE

PCC CITY SIDEWALK

EASEMENT
A1
24"
30"
15"15"

TYPICAL TOILET MINIMUM CLEARANCE REQUIREMENTS

CLEARANCE FOR WATER CLOSETS TO BE A MINIMUM
OF 24" IN FRONT ND 15" FROM CENTER TO ANY SIDE
WALL OR OBSTRUCTION.
='1'
40'
-2-
436
7'-10"
15'-2"
12'-8"

REAR ELEVATION
A2

NORTH ELEVATION

SOUTH ELEVATION
-3-
437
STUCCO
ROOF

GLASS ALUMINUM

WOODEN DOOR GLASS

ALUMINUM
STUCCO
ROOF
A3

EAST ELEVATION

WEST ELEVATION
-4-
438

BAKER STREET

PROPERTY LINE

FENCE SOLAR

PROPERTY LINE

BOUNDARY WALL

DRIVEWAY
105'-8"
67'-5"
105'-9"

EXISTING DWELLING

SITE PLAN
Scale 1/8" = 1'-0"

ROOF PLANS

GENERAL NOTES

1. INSULATION HAS 1" MIN. AIR SPACE ABOVE IN VAULTED CEILING.

2. INSTALLATION OF ROOFING SHALL BE IN ACCORDANCE WITH
MANUFACTURES SPECIFICATIONS.

3. COMPOSITION SHINGLE ROOF OVER LAPPED 30# A.S. FELT (TYP. THRU OUT)

4. COORDINATE INSTALLATION OF NEW ROOFING WITH OTHER TRADES.

REPORT ANY CONFLICTS WITH ITEMS INSTALLED BY OTHER TRADES TO DESIGNER.

5. ALL ROOF CURBS FOR NEW ROOFTOP EXHAUST FANS , HVAC UNITS AND

CONDENSING UNITS SHALL HAVE CURB HEIGHTS THAT WILL ALLOW FOR A MINIMUM OF 8" BASE FLASHING HEIGHTS FOR THE ROOF SYSTEM.

6. ALL PLUMBING VENTS SHALL EXTEND ABOVE THE FINISHED SURFACE OF THE ROOF SYSTEM AS REQUIRED TO PROVIDE FOR A MINIMUM OF 8" BASE FLASHING.

7. PROVIDE 36" WIDE WALK PADS @ SERVICE SIDE OF ALL MECH. EQUIPMENT.

8. ALL EXPOSED METAL FLASHING/ TRIM PIECES TO BE PRE-FINISHED 24 GA.

STL. U.N.O.. PROVIDE PRE-FINISHED OR FIELD PAINT FLASHING ONLY AS NOTED.

9. R903.4.1 OVERFLOW DRAINS AND SCUPPERS. WHERE ROOF DRAINS ARE

REQUIRED, OVERFLOW DRAINS HAVING THE SAME SIZE AS THE ROOF DRAINS SHALL BE INSTALLED WITH THE INLET FLOW LINE LOCATED 2 INCHES (51 MM) ABOVE THE LOW POINT OF THE ROOF, OR OVERFLOW

SCUPPERS HAVING THREE TIMES THE SIZE OF THE ROOF DRAINS AND HAVING A MINIMUM OPENING HEIGHT OF 4 INCHES (102 MM) SHALL BE

INSTALLED IN THE ADJACENT PARAPET WALLS WITH THE INLET FLOW LOCATED 2 INCHES (51 MM) ABOVE THE LOW POINT OF THE ROOF SERVED.

THE INSTALLATION AND SIZING OF OVERFLOW DRAINS, LEADERS AND CONDUCTORS SHALL COMPLY WITH THE CALIFORNIA PLUMBING CODE.

10. PROVIDE ICE BREAKS AT ALL PERIMETER AREAS OF STANDING SEAM ROOFING.

11. PROVIDE 36" WIDE WALK PADS @ SERVICE SIDE OF ALL MECH. EQUIPMENT. & PROVIDE 36" WIDE WALK PADS AROUND ALL ROOF HATCHES & 72"X72" PADS AT LADDERS.

12. ALL EXPOSED METAL FLASHING/ TRIM PIECES TO BE PRE-FINISHED 24 GA.

STL. U.N.O.. PROVIDE PRE-FINISHED OR FIELD PAINT FLASHING ONLY AS NOTED.

13. GUTTERS - ALL GUTTERS TO BE PRE-FINISHED 24 GA. STL. . PROVIDE PRE-FINISHED GALV. STL. BENT PLATE BRACKETS AND 14GAX1" GALV. STL.

SPACERS @ 36" O.C. MAX. - STAGGER W/ EACH OTHER @ 18" O.C.. PROVIDE

PRE-FORMED

14. GUTTER E.J.'S PER SMACNA FIG. 1-7, TYP. @ 30'-0" MAX.. PROVIDE S.S.

SCREENS @ ALL GUTTERS PER SMACNA FIG 1-24.

15. ALL DOWNSPOUTS TO BE PRE-FINISHED 24 GA. GALV. STL., PER SMACNA FIG 1-32B. DOWNSPOUTS ARE 6"X6" U.N.O., LOCATED AS NOTED ON ROOF PLAN. 15GA.X2" GALV. STL. HANGERS @ 48" O.C. MAX. PER SMACNA FIG 1-35B.

16. PROVIDE PAINTED 4' TALL CAST ALUM. DOWNSPOUT BOOTS @ ALL DOWN SPOUTS, TIE INTO SUB-GRADE DRAINAGE, RE: CIVIL.

17. TAPERED INSULATION TO BE 1/4" PER FOOT MIN. SLOPE TO DRAIN. ROOF PLAN SHOWS TAPERED INSULATION FOR GRAPHIC REPRESENTATION ONLY.

CONTRACTOR TO VERIFY INSULATION REQUIRED TO SLOPE PRIOR TO MEMBRANE INSULATION.

18. PROVIDE TAPERED INSULATION CRICKETS 1/4" PER FOOT MIN. SLOPE @

HIGH SIDE OF ALL MECHANICAL UNITS AND ROOF HATCHES, TO SHED WATER AROUND AND MAINTAIN POSITIVE ROOF DRAINAGE.

19. ALL WOOD BLOCKING AT ROOF EDGES, RIDGES, ETC. TO BE 2X FR-WD BLOCKING.

20. VERIFY ELEVATION OF ROOF DRAIN RELATIVE TO OVERFLOW SCUPPER

PRIOR TO INSTALLATION OF SCUPPERS
A4
1/2" CDX PLY

APROVED

ROOF COVERING

ALTERNATE LOCATION
OF GWB OR 2X

BLOCKING IF NO

CEILING FINISH IS
2X4 BLOCK
FASCIA

PROVIDED
SOFFIT
BOARD
5/8 TYPE X

GYPSUM SHEATING

STUCCO FINISH
5/8 TYPE X
GYPSUM

WALLBOARD
2X FRAMING

STRUCTURAL

SHEATING AS

REQUIRED
1 HOUR RATED WALL AND4SCALE: NTS PROTECTED EAVE OVERHANG NOTES:
4" MIN.
- THE ROOF OVERHANG CANNOT EXCEED 12" AND MUST BE

ONE-HOUR PROTECTED OR EQUAL ON UNDERSIDE IF ADU IS
LOCATED UNDER 5' FROM PROPERTY LINE OVERHANG SHALL BE
ADJUSTED TO MIN. REQUIRED. AS PER CODE SECTION R302
12" OR
-5-
439
8'-0"

A-A (NTS)
A5
51 HOUR FIRE - GENERICSCALE: NTS EXTERIOR WALLS

GYPSUM WALLBOARD, GYPSUM SHEATHING, WOOD STUDS
EXTERIOR SIDE: ONE LAYER 48" WIDE 5/8" TYPE X GYPSUM
SHEATHING APPLIED PARALLEL TO 2X4 WOOD STUDS 24" O.C.

WITH 1-3/4" GALVANIZED ROOFING NAILS 4" O.C. AT VERTICAL JOINTS AND 7" O.C. AT INTERMEDIATE STUDS AND TOP AND
BOTTOM PLATES. JOINTS OF GYPSUM SHEATHING MAY BE LEFT
UNTREATED. EXTERIOR CLADDING TO BE ATTACHED THROUGH
SHEATHING TO STUDS.

INTERIOR SIDE: ONE LAYER 5/8" TYPE X GYPSUM WALLBOARD,

WATER-RESISTANT GYPSUM BACKING BOARD, OR GYPSUM

VENNER BASE APPLIED PARALLEL OR AT RIGHT ANGLES TO
STUDS WITH 6d COATED NAILS, 1-7/8" LONG, 0.0915" SHANK, 1/4" HEADS, 7" O.C. (LOAD-BEARING)
THICKNESS: VARIES
APPROX. WEIGHT: 7 PSF
FIRE TEST: SEE WP 3510
(UL R3501-47,-48,9-17-65
UL DESIGN U309,
UL R1319-129, 7-22-70,
UL DESIGN U314)

EXTERIOR SIDE

INTERIOR SIDE

SECTION A-A
-6-
440
RESOLUTION NO. PC-2026-06

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF COSTA MESA, CALIFORNIA UPHOLDING THE

HEARING OFFICER'S APPROVAL OF SPECIAL USE PERMIT
PGSH-24-0002 TO ALLOW A SOBER LMNG HOME WITH SIX

OR FEWER PERSONS (NOT COUNTING THE HOUSE
MANAGER) TO BE LOCATED AT 1601 BAKER ST

THE PLANNING COMMISSION OF THE CITY OF COSTA MESA, CALIFORNIA FINDS AND DECLARES AS FOLLOWS:

WHEREAS, on June 1, 2024, Planning Application PGSH-24-0002 was filed by George Vilagut, as applicant, property owner, and sole owner of Stephouse Recovery, Inc., requesting approval of Planning Application PGSH-24-0002 for a Special Use Permit (SUP) to allow the operation of a sober living home with six or few persons (not counting the house manager) at 1601 Baker Street; and
WHEREAS, staff reviewed the application and supporting materials and determined that the project satisfies the provisions and requirements of CMMC Section 13-311, subsections (a) and (b). Based on this review, no disqualifying grounds have been identified at this time; and
WHEREAS, on October 23, 2025, a duly noticed public hearing was held beTore a Hearing Officer, acting as designee of the Director of Economic and Development Services, to consider SUP Application No. PGSH-24-0002, with all persons having the opportunity to submit written comments for and against the proposal, pursuant to Costa Mesa Municipal Code Section 13-311, for the purpose of receiving information regarding the Applicant's compliance with the applicable provisions of subsections (a) and (b) of Section 13-311 ; and
WHEREAS, on December 23, 2025, the Director provided a written notice to the applicant and the owners and occupants of all properties within 500 Feet of the location of the sober !iving home that the SUP was going to be approved based on compliance with Costa Mesa Municipal Code Section 13-311, subject to conditions of approval and CMMC requirements; and
WHEREAS, on January 5, 2026, the Hearing Officer issued SUP PGSH-24-0002; and
ATTACHMENT 7
-1-
441
WHEREAS, on January 7, 2026, Mayor Stephens submitted a timely "Application for Review" of the Hearing Officer's approval of SUP PGSH-24-0002 pursuant to CMMC Title 2, Chapter IX; and
WHEREAS, a duly noticed public hearing was held by the Planning Commission on February 23, 2026, with all persons having the opportunity to speak for and against the proposal; and
WHEREAS, pursuant to the California Environmental Quality Act (CEQA), the project is exempt from the provisions of the CEQA per Sections 15268 (Ministerial Projects) 15301 (Existing Facilities); and
WHEREAS, the CEQA categorical exemption for this project reflects the independent judgement of the City of Costa Mesa; and WHEREAS, the Planning Commission finds that the application meets the criteria for issuance or the SUP pursuant to CMMC Section 13-311.

NOW, THEREFORE, based on the evidence in the record, the Planning Commission hereby UPHOLDS THE HEARING OFFICER'S DECISION ON SUP PGSH- 24-0002.

BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion or this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions.

PASSED AND ADOPTED this 23rd day of February, 2026.

Je rlAn. 6h ir
Co Mesa Planning Commission
-2-
442

ST ATE OF CALIFORNIA )
COUNTY OF ORANGE )ss

CITY OF COSTA MESA )
1, Carrie Tai, Secretary to the Planning Commission of the City of Costa Mesa, do hereby certify that the foregoing Resolution No. PC-2026-06 was passed and adopted at a regular meeting of the City of Costa Mesa Planning Commission held on February 23, 2026 by the following votes:

AYES: Harlan, Zich, Andrade, Dickson, Klepack, Martinez, Rojas NOES: None
ABSENT: None
ABSTAIN: None
Carrie i 6retary
Costa Mesa Planning Commission
Resolution No. PC-2026-06
-3-
443

REGULAR PLANNING COMMISSION
MONDAY, FEBRUARY 23, 2026 - MINUTES
CALL TO ORDER - The Regular Planning Commission Meeting was called to order by Chair Harlan at 6:00 p.m.

PLEDGE OF ALLEGIANCE TO THE FLAG Commissioner Rojas led the Pledge of Allegiance.

ROLL CALL

Present: Chair Jeffrey Harlan, Vice Chair Jon Zich, Commissioner Angely Andrade, Commissioner Robert Dickson, Commissioner Karen Klepack, Commissioner David Martinez, Commissioner Johnny Rojas

Absent: None
ANNOUNCEMENTS AND PRESENTATIONS: None
PUBLIC COMMENTS - MATTERS NOT LISTED ON THE AGENDA:

Windy Simo expressed concern about undocumented labor practices, stating that employers should be responsible for legally processing and documenting workers to ensure fair wages and protections. She emphasized her belief that all individuals working in the country should be properly documented. She also raised neighborhood quality-of-life issues, including noise from a nearby gym and construction activity occurring during restricted Sunday hours, and requested stronger enforcement of local regulations so that her community does not continue to experience ongoing disturbances.

Cynthia McDonald, criticized the City's upcoming Measure K rezoning outreach meetings, stating that they do not function as true town halls and instead rely on tightly controlled presentations that limit meaningful dialogue and provide little substantive information. She argued that prior outreach efforts lacked transparency, noting missing materials such as the adopted Housing Element and information about RHNA obligations, and said important details were only shared after public pressure. She questioned the value of attending meetings when public input does not appearto influence outcomes and gave the City's engagement process a "failing grade," citing a lack ofleadership. She also raised concerns about the noon deadline Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page I ATTACHMENT 8
-1-
444
for written public comments and alleged inconsistent handling of submitted correspondence, stating that this undermines transparency, erodes public trust, and creates the appearance of preferential treatment.

PLANNING COMMISSIONER COMMENTS AND SUGGESTIONS:

Commissioner Martinez announced three upcoming community events: the Community Emergency Response Team kickoff taking place at 6:00 p.m. at City Hall in the Community Room, with the Fire Marshal expected to attend; the All Abilities Resource Fair scheduled for Saturday, February 28, from 11:00 a.m. to 1:00 p.m. at the Senior Center; and the continuation of the Planning Department's "Neighborhoods Where We All Belong" outreach meetings next week.

Commissioner Dickson apologized for his recent absences due to elbow surgery and addressed concerns raised during public comment regarding transparency and public engagement. He emphasized that municipal government's role is to serve the community and encouraged ensuring that all written comments received before deadlines are made publicly accessible. He expressed concern about limited information in outreach materials, noting that postcards and City communications such as the "City Hall Snapshot" could provide clearer and more detailed information about upcoming public meetings and significant land use matters. He echoed calls for more town hall-style engagement, acknowledged logistical challenges in organizing such events, and encouraged expanded efforts to better inform residents about important planning decisions, stating that increased awareness may help improve public participation.

Commissioner Andrade expressed support for providing a more open forum format for community engagement, noting that a previous town hall held in the Council Chambers was effective in allowing residents to share feedback. She suggested incorporating a similar open-floor opportunity into upcoming outreach meetings, allowing dedicated time for public comment and concerns rather than relying solely on structured interactive activities.

CONSENT CALENDAR:

1. FEBRUARY 9, 2026, UNOFFICIAL MEETING MINUTES
MOVED/SECOND: DICKSON/ MARTINEZ
MOTION: to approve Consent Calendar.

The motion carried by the following roll call vote:

Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Dickson, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas Nays: None
Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 2 -2-
445

Absent: None
Recused: None
Motion carried: 7-0
ACTION:

Planning Commission approved consent calendaritems. ------------------------------------END OF CONSENT CALENDAR PUBLIC HEARINGS:

Chair Harlan made a motion to reorder the agenda by moving Public Hearing Item No. 1 to be heard last. Seconded by Commissioner Dickson.

MOVED/SECOND: HARLAN/DICKSON
MOTION: To move staff recommendations.

Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Dickson, Commissioner Klepack, Commissioner Rojas
Nays: Commissioner Martinez

Absent: None
Recused: None
Motion carried: 6-1

2. MINOR CONDITIONAL USE PERMIT (PMCP-26-0003) TO AMEND CONDITIONAL USE PERMIT PA-21-36 TO MODIFY HOURS OF OPERATION, REMOVE THE REQUIREMENT FOR A 24-HOUR SECURITY GUARD, AND CONDUCT A SIX-MONTH REVIEW FOR "420 NATIVE GARDEN" RETAIL CANNABIS STOREFRONT, LOCATED AT 167 CABRILLO STREET One ex-parte communication reported.

Presentation by Assistant Planner, Gabrial Villalobos.

Chris Glew stated he read and agreed to the conditions if approval.

Public comments:

Jim Fitzpatrick stated that the matter had been overblown and praised the significant improvements made to the property compared to its previous condition. He expressed concern that the business was required to pay $3,800 to remove a security guard condition that had previously been eliminated by unanimous City Council action, and questioned whether other businesses would face similar costs. He urged the Commission to be more business-friendly, consider refunding the fee, and take a more solution-oriented approach.

Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 3 -3-
446
Motion Discussion:

Discussion ensued regarding the motion to approve the amendment, with Commissioners noting the business's positive operational history and strong support from nearby residents. Members characterized the request as reasonable and consistent with current Municipal Code standards. Concerns were raised about the $3,800 fee required to process the change and whether broader policy adjustments should be considered by City Council. Additional comments emphasized the need to streamline future conditions of approval by citing the Municipal Code to avoid unnecessary administrative reviews. Overall, Commissioners expressed support for the motion and the business's continued success.

MOVED/SECOND: DICKSON/ZICH
MOTION: Move staff's recommendation.

Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Dickson, Commissioner Klepack, Commissioner Rojas, Commissioner Martinez Nays: None

Absent: None
Recused: None
Motion carried: 7-0
ACTION:

The Planning Commission adopted a resolution to:

1. Find the project is exempt from the provisions of the California Environmental Quality Act (CEOA) per CEOA Guidelines Section 15301 (Class 1), Existing Facilities;

2. Approve Minor Conditional Use Permit (PMCP-26-0003) based on findings of fact and subject to conditions of approval; and 3. Find that the operations during the initial six-month review period have been consistent with the project's Conditions of Approval, have not resulted in issues related to neighborhood compatibility, and receive and file the review.

3. CALL FOR REVIEW OF THE APPROVAL OF SPECIAL USE PERMIT (PGSH-24- 0002) TO ALLOW A SOBER LMNG HOME WITH SIX OR FEWER RESIDENTS TO BE LOCATED AT 1601 BAKER STREET
Two ex-parte communication reported.

Presentation by Senior Planner, Victor Mendez.

Mary Willcox, applicant team, stated she read and agreed to the conditions of approval.

Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 4 -4-
447
Public comments:

Gary Hill stated that he and his family strongly oppose the proposed sober living use next to their home, citing concerns for their daughter who lives directly adjacent to the property. He expressed that placing multiple unrelated adult residents in a single-family neighborhood could introduce safety, noise, and behavioral concerns that do not currently exist. While acknowledging the value of recovery programs, he argued that this location is inappropriate and urged the City to prioritize the safety and stability of the residential neighborhood. ' Wyatt Russell stated that he disagrees with staff's recommendation to uphold the hearing officer's approval, arguing that the record does not support a finding of full compliance with the Municipal Code. He cited prior statements from the applicant denying operation of a sober living home, while referencing a County contract and online advertisements that list the property as a recovery residence.

He contended that these inconsistencies may constitute materially misleading information under the code and warrant further review before affirming the approval.

Marilyn Scott Waters, a long-time Baker Street resident, urged denial ofthe special use permit, arguing the project has not complied with CEOA and may increase traffic, noise, and public safety impacts without proper environmental review. She stated the proposal is inconsistent with the General Plan and R-I zoning, citing concerns about overconcentration of congregate living facilities on the same block. She also questioned compliance with Municipal Code requirements, including separation standards and operator accountability, and expressed concerns about parking, neighborhood impacts, and quality oflife.

Jim Fitzpatrick questioned what specific problem the City was attempting to address, stating that no documented facts or evidence had been presented to justify denial of the sober living operation. He noted that the hearing officer, an independent attorney, found no factual basis for denial and emphasized that similar facilities, including one operating locally for 10 years, have generated no police calls or code violations. He contrasted this with other properties in the area that have documented service calls, arguing there is no demonstrated negative impact from the sober living home at issue.

Speaker five urged the Commission to carefully consider concerns raised by other neighbors and said they are worried about the proposed facility's potential impacts on the community. They cited statistics about relapse rates and crime associated with substance abuse, arguing these risks could affect neighborhood safety and quality oflife. They also emphasized the need to verify that the operator Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 5 -5-
448
is accurately representing what the business will be doing before any approval is upheld.

Kristin Auslander, expressed concern about the proposed facility's impact on neighborhood safety and family life. While supportive oftreatment programs, she questioned prior operations atthe property and referenced police activity at other locations operated by the same organization. She shared a personal example involving her child retrieving a ball over the fence to illustrate her discomfort and urged reconsideration of the application in the interest of community safety.

Motion Discussion:

Discussion focused on the limited scope of the Commission's review, with members emphasizing that the decision was ministerial and confined to determining whether the applicant complied with municipal code requirements.

Commissioners stated they did not find new evidence that would justify overturning the approval and noted their role is to apply existing City Council policies, not create or modify them. While acknowledging and expressing empathy for neighbors' concerns about safety and neighborhood impacts, members reiterated that the application met the code standards before them.

Ultimately, Commissioners indicated they would support the motion based on compliance with the established regulations, despite reservations about broader policy issues.

MOVED/SECOND: MARTINEZ/HARLAN
MOTION: To move staff recommendations.

Ayes: Chair Harlan, Vice Chair Zich, Commissioner Andrade, Commissioner Dickson, Commissioner Klepack, Commissioner Martinez, Commissioner Rojas Nays: None

Absent: None
Recused: None
Motion carried: 7-0
ACTION:

The Planning Commission adopted a Resolution to:

1. Adopt a Resolution approving a three-year extension of time for ZA-22-08, which allowed a major amendment to the Avenue of the Arts Hotel Master Plan (PA-16- 50), and

2. Determine that Pursuant to CEOA Guidelines Section 15168(c), no subsequent or supplemental EIR is required, and the previously certified EIR adequately addresses the environmental impacts of the proposed project Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 6 -6-
449

1. A RESOLUTION RECOMMENDING THAT THE CITY COUNCIL AMEND THE SIXTH CYCLE HOUSING ELEMENT (2021-2029) OF THE CITY OF COSTA MESA'S GENERAL PLAN (PCTY-26-0001) IN CONNECTION WITH THE HOUSING ELEMENT SITES REZONING (PCTY-25-0008 AND PSPA-26-0001 ) Presentation by Senior Planner, Michelle Halligan.

Staff presented the proposed targeted amendments to the Housing Element sites inventory that stem from a recent court opinion that altered how cities must structure the zoning of Housing Element sites, which prompted renewed outreach to property owners. As a result, three property owners (representing 17 sites) requested removal and two property owners requested addition, creating a net loss of sites and units. If the Housing Element amendment is approved by the City Council, a 180-day "no net loss" period is triggered. Within that time frame, the City will be tasked with identifying adequate sites to restore capacity to address the Regional Housing Needs Allocation. During discussion, commissioners asked about timing, and HCD certification impacts; staff clarified that the Housing Element amendment and previously recommended rezoning actions are running on parallel tracks and that certification efforts will continue concurrently. Questions also focused on outreach strategy, how replacement sites would be identified, and whether Measure K properties or density adjustments could help restore capacity.

Staff emphasized ongoing coordination with property owners and the state, explaining that the 180-day window is intended to allow cities to recalibrate without jeopardizing or losing certification. A more thorough update of the Housing Element would be completed during the 180-day timeframe. Overall, the discussion centered on process, sequencing, and maintaining compliance while working toward restoring the required housing capacity.

Public comments:

Jim Fitzpatrick expressed concern that the City is disregarding warning letters and guidance from HCD, the Attorney General, and Disability Rights California, and argued that failing to meaningfully address those concerns could expose the City to further legal and financial consequences. He referenced prior litigation, including a costly settlement, to dispute claims that the City has been "winning" on group home issues. He questioned what specific ordinance changes have been made in response to settlement agreements and agency feedback, and urged the City to shift from a confrontational posture toward greater cooperation to avoid additional legal risk.

Gay Royer, requested that the Club's longtime property be removed from the Housing Element sites list. She highlighted the organization's 115-year history in Costa Mesa and described the building as an important, affordable gathering space used by schools, nonprofits, community groups, and neighborhood Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 7 -7-
450
families. She emphasized its role as a community hub on the west side, including daily use by local students and families, and urged the Commission to preserve the property's longstanding civic and social function.

Sue Lester spoke in support of removing the Costa Mesa Women's Club property from the Housing Element opportunity sites list, emphasizing the organization's 115-year history of community service. She stated thatthe Club has nointention of selling or redeveloping the property so keeping it on the list would be misleading and could subject the organization to unwanted pressure from developers. She highlighted the Club's longstanding contributions to the west side community and urged the Commission to respect the wishes of the property owners and preserve the site's community-serving role.

Speaker 4 expressed support for removing the Women's Club property from the Housing Element list, arguing that applying overlays and identifying sites for affordable housing unfairly encumbers private property owners. He raised concerns about infrastructure capacity, including traffic, street design, and park space, questioning how additional housing would be supported. He acknowledged the City's obligation to comply with state housing requirements but urged the Commission to consider the perspective of property owners and make decisions that protect their interests.

Cynthia McDonald expressed support for removing the Women's Club property but urged the Commission to delay action until significant compliance concerns are addressed. She questioned the impact of removing multiple sites on the City's housing capacity and asked whether HCD has been consulted about the resulting shortfall and potential enforcement consequences. She raised concerns about possible funding losses, legal exposure, and the risk of state penalties or court intervention if the City remains out of compliance. She also questioned how replacement capacity would be identified and whether additional property owners might request removal, further complicating compliance, and urged the Commission to pause and seek clearer answers before proceeding.

Speaker 6 stated that if larger, high-profile properties are removed from the housing list while the Women's Club remains included, it would reinforce concerns about unequal treatment. She emphasized the Women's Club's long history of charitable servicein Costa Mesa and its contributions to the community since 1910.

She urged the Commission to remove the Club's property from the list so it can continue its community-focused work.

Betsy Densmore, expressed concern that the proposed removals represent a significant weakening of the previously approved Housing Element. She stated that given the uncertainty surrounding the recent court opinion and involvement of various state agencies, it would be premature to move sites in and out of the Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 8 -8-
451
inventory so quickly. She urged the Commission to pause and allow more time to evaluate which properties should remain or be removed under the evolving legal framework before making a recommendation.

Commission Discussion:

Commissioners discussed the proposed targeted Housing Element amendments, confirming that the Women's Club property was included among the sites slated for removal and that staff has been coordinating with HCD regarding the implications and the required 180-day no net loss process. Supporters of the motion emphasized the importance of maintaining a path toward HCD certification while honoring property owner requests and adapting to the recent court decision that altered the regulatory framework. One commissioner opposed the motion, expressing concerns about the overall housing strategy, infrastructure impacts, and whether property owners fully understand the consequences of remaining on the sites list. Other commissioners acknowledged the evolving legal landscape and staff's efforts, concluding that advancing the recommendation to City Council was the most prudent course to maintain progress toward compliance and regulatory certainty and honor the property owners requests.

MOVED/SECOND: MARTINEZ/DICKSON
MOTION: To move staff recommendation.

Ayes: Chair Harlan, Commissioner Andrade, Commissioner Dickson, Commissioner Klepack, Commissioner Rojas, Commissioner Martinez Nays: Vice Chair Zich

Absent:

Recused: None
Motion carried: 6-1
ACTION:

The Planning Commission adopted a resolution to:

1. Resolution No. 2022-67, certifying the Mitigated Negative Declaration (MND) and adopting the Mitigation Monitoring and Reporting Program (MMRP) statutorily and that the project is statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 2'l080.085(a) (SB 131); andFind that the project is consistent with the Costa Mesa City Council adopted

2. Recommend that the City Council adopt a Resolution to amend the City of Costa Mesa Sixth Cycle (2021-2029) Housing Element ofthe City's General Plan to add two Housing Element Opportunity Sites and remove 17 Housing Element Opportunity Sites.

Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 9 -9-
452
OLD BUSINESS: None.

REPORT - PUBLIC WORKS - Mr. Yang announced that striping and pavement markings on Fairview Road, between Fair Drive and Newport Boulevard, will begin this evening following completion of recent grinding and asphalt overlay work. Due to traffic volumes and congestion, lane striping and installation of thermoplastic markings for crosswalks and bicycle facilities will occur during evening hours over the next four days. Staff also noted that a new HAWK pedestrian signal will be installed near Valley Forge in the coming months to improve pedestrian safety. The public was advised to follow all posted signs and traffic control measures while traveling through the area.

REPORT DEVELOPMENT SERVICES Director Tai announced three upcoming "Neighborhoods Where We Belong" workshops scheduled for March 2 (in person at the Norma Herzog Community Center), March 5 (virtual via Zoom), and March 7 (in person at the Costa Mesa Senior Center). These sessions will refine concepts developed during the first round of workshops, focusing on community priorities, future housing and mixed-use planning, and draft development regulations, with Spanish interpretation, kid-friendly activities, and refreshments provided. Staff also noted that the February 9 rezoning item and tonight's Housing Element amendment are anticipated to go before City Council on March 17, along with the City's annual General Plan and Housing Element Progress Report due to the state by April 1. Lastly, staff highlighted the recent launch of the City's Active Development Map, now available on the City's main webpage, currently in beta with mobile optimization in progress.

REPORT - ASSISTANT CITY ATTORNEY - None
ADJOURNMENT AT 9:33 p.m.

Submitted b
-Y
Minutes - Costa Mesa Planning Commission Meeting - February 23, 2026- Page 10 -10-
453

PARTIDA, ANNA
From:

Sent:

To:

Subject:

P*=2,,
Garagedoors24-7 <[email protected]>
Monday, February 16, 2026 11 :26 AM
PC Public Comments
Public Comment- Application No. PGSH-24-0002 (1601 Baker Street) To the Costa Mesa Planning Commission,
We are residents of 1585 Baker Street and write to formally oppose the proposed Special Use Permit for 1601 Baker Street.

After discussing this matter with neighboring households, it is clear that there is substantial concern regarding the appropriateness of this location for the proposed use. Baker Street already experiences steady vehicle traffic and constrained street parking. The surrounding area includes numerous family households and is in close proximity to several schools and educational centers, resulting in significant daily drop-off and pick-up traffic, school bus activity, and pedestrian movement.

Given these existing conditions, introducing a group living facility within an R-1 Single Family Residential zone would add density and activity that is inconsistent with the intended character of the neighborhood. The anticipated increase in parking demand, vehicle turnover, and overall intensity of use would further strain an already impacted corridor and materially affect nearby homes.

This area was planned and zoned for single-family residential living, and the proposed change would alter the functioning and expectations of the surrounding properties. As a growing Family with a baby on the way, we are deeply invested in preserving the safety, stability, and residential integrity of our street.

For these reasons, we respectfully but firmly urge the Commission to deny the Special Use Permit for this location.

Thank you for your time and careful consideration.

Sincerely,
Aviran and Tal Segolie
1585 Baker Street, Costa Mesa, CA 92626
CAUTION: This email qriginated from outside of the organization. Do not click links or open a[tachm ents unless you recognize the sender and know the cor4tent is safe.gepor3 any suspiciousactivities to$§ Jnfqrmation '%cbno2ogyIep'artrnent.l
1 ATTACHMENT 9
-1-
454

PARTIDA, ANNA
From:

Sent:

To:

Subject:
[email protected]
Sunday, February 22, 2026 2:54 PM
PC Public Comments
Agenda ITem PH-3. SPECIAL USE PERMIT (PGSH-24-0002), oppose I am writing to state my objections to a proposed group home at 1601 Baker Street. I would also like to thank Mayor Stephens for requesting further review of the initial determination by the Hearing Officer.

The approval of Special Use Permit (PGSH-24-0002) to allow a sober living home at 1601 Baker Street would be inappropriate inasmuch as it is immediately adjacent to a group home for at risk teens. Placing group homes side by side, regardless of the purpose of the group home, changes the nature of the nature of the neighborhood. It is absurd to maintain otherwise. Under such reasoning, we could have a senior home next to a sober a e isabled next to a home for abused children next to a halfway house and then start the lineup over again ad infinitum, all the while pretending we are in a typical residential neighborhood.

The Lanterman Act envisioned creating small group homes in neighborhoods so that the group home residents could experience care and/or recovery in a residential setting. This ideal is offen cited by those seeking to establish various group homes. How can a residential setting be maintained when a neighborhood is insitutionalized due to side by side group facilities? This defeats the very purpose of having the facilities in residential neighborhoods to begin with.

Accordingly, when adopting ordinance NO. 17-05 regulating group homes, the City Council found that:

WHEREAS, the purpose of sober living homes is to provide a comfortable living environment for persons with drug or alcohol addictions in which they remain clean and sober and can participate in a recovery program in a residential, community environment... and also found the following, (also found in adopting Ordinance 14-13)::

WHEREAS, housing inordinately large numbers of unrelated adults in a single-family home or congregating sober living homes in close proximity to each other does not provide the handicapped with an opportunity to "live in normal residential surroundings," but rather places them into living environments bearing more in common with the types of institutional/campus/dormitory living that the FEHA and FHAA were designed to provide relief from for the handicapped, and which no reasonable person could contend provides a life in a normal residential surrounding;
Approval of Special Use Permit (PGSH-24-0002) is clearly inconsistent with the stated intent and purpose of the City's ordinances regulating group homes. The application must therefore be denied.

Sandra Genis
1 -2-
455

PARTIDA, ANNA
From:

Sent:

To:

Subject:

Theresa Parra <[email protected]>
Monday, February 23, 2026 9:08 AM
PC Public Comments
Opposition to Continued Use of Special Use Permit for 1601 Sober Living Home PGSH-42-0002
Opposition to Continued Use of Special Use Permit for 1601 Sober Living HomePGSH-42-0002 To Whom It May Concern,
I am writing to express my strong opposition to the continued use of the Special Use Permit for the single-unit sober living home located at 1601 Baker Street Costa Mesa, CA 92626.-PGSH-42-0002 This home is not being operated in accordance with the permit requirements. Most notabLy, it Lacks a live-in, on-site house manager - a critical condition for maintaining the safety, supervision, and structure such a facility requires.

As a direct neighbor of this property, I can say with certainty that it has significantLyimpacted the safety and well-being of our residential neighborhood. The tenants, many ofwhom possibLy have criminal records and known histories of substance abuse, have contributed to an increasingly unsafe environment. Our neighborhood includes families with young children, schools, parks, and churches within a one-mile radius - all of which should be protected and preserved as safe community spaces.

We have experienced several concerningincidents tied to individuaLs associated with the property at 1601,incLuding but not Limited to:

An attempted break-in at my home by a man clearly under the influence, barefoot, who repeatedly tried to enter through our front door and attempted to scale our backyard gate. He was arrested shortly thereafter,in front of 1601.

A man visiting a resident of 1601 jumped over our back waLLin an attempt to fLee when the faciLity director finally arrived for a check-in.
@ AvisitorandresidentwerefoundpassedoutinavehicLethatwassLowLyrollinginfrontofour driveway.
@ Numerous police and emergency medical responses to the property.

Ongoing suspicious activityinvoLvingindividuaLs loiteringin front of and across the street from 1601, whom are visiting residents of 1601.

Most recentin the last two month, visitors dropping of residents at 2:45 am and doing repeated donuts in their car on the streetin front of 1601, 1606, 1605 Baker St and neighbors homes.lf a manager was onsite that would have been stopped not to mention the Late night arrival of a resident. This could have caused property damage
* and harm to neighbors as many bedrooms face the front of the houses. 1 -3-
456
These are not isoLated incidents. The presence and operations of this home are creating a persistent and escaLating safety concern for our neighborhood. Families, incLuding mine, no Longer feel comfortabLe spending time in front of our own homes with our children. We are constantly concerned about our personal safety, our children's safety, and the security of our property.

I respectfuLLy urge you to reconsider the approval or renewaL of the Special Use Permit for 1601. The current operation of this facility is notin compliance and is proving harmful to the surrounding community.

Thank you for your time and attention to this serious matter.

Sincerely,
concerned Neighbor of Mesa Verde - Baker St
CAUTION: This erriail originated from outside of the organization. Do not click links or 6pen nttac,hi entsl mnless yourecogize the sender and know$e qontentissafe, R3po5t any suspicious activities tothel [nformati6nTechno1pgyDepartment,
2 -4-
457

PARTIDA, ANNA
From:

Sent:

To:

Subject:

Attachments:

Jim Fitzpatrick <[email protected]>
Monday, February 23, 2026 10:56 AM
PC Public Comments
Public Hearing #3 - Seeking Facts about Impacts
Public Hearning ITEM #3.pdf
Please make the attached:
* Available for Commissioners
* Available for the Public
@ Available to be presented during Oral Public Comments Please confirm receipt of this email
Cheers,
Jim Fitzpatrick
Solutioneer in Residence
CAUTION: This email originated fiom outside.of the organization. Do not 61ick links or open attachm entsl Onless you recognize the sender and know the contentis safe. Report any suspiciousactivitjes.to$q Jnformation TechnolqgyDepart@ent.,
1 -5-
458
[NIN@ g0NU@8g)% Agwida Pebnaq 21 Baa
IMPACTS = FACTS

3. CALLFORREVlEWOFTHEAPPROVALOFSPEClALUSEPERMIT26-158
(PGSH-244002) TO ALLOW A SOBER LMNG HOME WITH SIX OR FEWER RESIDENTS TO BE LOCATED AT 1601 BAKER STREET RECOMMENDATjON:

Staff reoommends the Planning Commission:

1. FOnd that the pmject Xs exempt fmm the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15268 (Minfsterial Projects) and 15301 (Existing Faci!ities); and

2. Uphold the Hearing Officer's issuance of Special Use Permit (PGSH-24- 0002) to allow a sober livfng home with six or fewer persons (not counting the house manager) at 1601 Baker Street.

Attachments: Aqenda Report

1. Draff Planninq Commission Resolution

2. Hearinq Officer Memorandum

3. Final Decision Memorandum

4. Call Up Review Application

5. Hearinq Officer Public Comments

6. Plans
-6-
459
01HO
-7-
460

SIGNIFICANT

SUPPORT
+ 30 LETTERS

OPPOSITION
BAMEC"n
+ Business Owne
2 Barbers
"We get a lot of clients
from the Ohio House.

Definitely a benefit of
the community"
"Great Program.

Never been bothered
the Houses"
-650 Feet
8 around the corner,
bLems at all,
see them"
have been good"
-8-
461
PARTIDA, ANNA PH-?;=
From:

Sent:

To:

Subject:

Attachments:

Francie Vesecky <[email protected]>
Monday, February 23, 202611 :43 AM
PC Public Comments
Public Comment for 2/23/26 Hearing for 1601 Baker St Letter to CM Planning Comission.pdf
I have attached my public comment for the hearing about the proposed sober living facility at 1601 Baker Street on 2/23/26.

Thank you
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. 1 -9-
462
Dear Members of Costa Mesa Planning Commission,
I hope this letter finds you well. My name is Frances Vesecky and I am a member of the Mesa Verde neighborhood of Costa Mesa. I am writing because I am deeply concerned about your consideration to allow a sober living facility at 1601 Baker Street and want to bring to your attention to the many problems with this plan and why it should not be approved.

1. This small 2,200 sqft home hardly seems large enough for 6 patients/residents and there will also be staff who work at the facility. Mesa Verde neighborhood is very quiet and family oriented. This business would be disruptive to our residents.

2. Baker Street is a busy residential street and this business operation will be disruptive to the flow of traffic for residents in this area.

3. Unfortunately, substance abuse treatment/recovery has high levels of relapse, approximately 40%-60% according National Institute for Drug Abuse This facility would put my fellow Mesa Verde residents and I at a higher risk for crime in cases of relapse. a. A substantial amount of research has confirmed the higher prevalence of substance abuse in cases of home burglaries.
b. The u.s. Department of Justice Bureau of Justic Statistics clearly states that "Drug users in the general population are more likely than nonusers to commit crimes" with increased rates of 26.1% for violent crimes, 24.7% for property crimes, 57.2% for driving under the influence.
c. The u.s. Department of Justice Bureau of Justic Statistics further states that "The evidence indicates that drug users are more likely than nonusers to commit crimes, that arrestees and inmates were often under the influence of a drug at the time they committed their offense."

4. 1601 Baker Street is not an ideal location for those struggling with substance abuse because of businesses just outside of the Mesa Verde residential neighborhood. a. 1601 Baker Street is O.1 miles and a three-minute walk from a liquor store. b. 1601 baker Street is O.6 miles, a 12-minute walk and a 2-minute drive from a Cannabis shop.

As a concerned citizen of Costa Mesa and homeowner, I hope you will take the time to consider just how this facility will negatively affect our quiet community in Mesa Verde and how it will pose extras struggles for the individuals who are already struggling with substance abuse addiction and recovery.

The Mesa Verde neighborhood is a quiet neighborhood, other than on Halloween when we see hundreds of kids trick or treating with their parents. Please keep those kids safe from encountering discarded drugs, drug paraphernalia and people struggling with the mental illness of addiction. Please do not allow this and increase the risk of burglary or other crimes in our neighborhood. Please do not allow this special use permit and do not let 1601 Baker Street become a sober living facility.

Sincerely, Frances Vesecky
-10-
463
PARTIDA, ANNA PH-"
From:

Sent:

To:

Subject:

Attachments:

Wyatt Russell <[email protected]>
Monday, February 23, 202611 :51 AM
PC Public Comments
Written Public Comment - PGSH-24-0002
2nd Written Public Comment PGSH-24-0002.pdf
Please see attached written public comment. Thank you.

Wyatt
CAUTION: This email originated from outside of the-organization. Do not click links or open anachment:
hnless you recognize the serider and know thecontent is safe. Report any suspiciousactivitiestotheJ- :[nformation Tec:o}ogy Departpentl
1 -11-
464
Written Public Comment - Special Use Permit Application PGSH-24-0002 1601 Baker Street, Costa Mesa
Submitted and Written By: Wyatt Russell
Date: 10-23-2025
To: City of Costa Mesa - Planning Division / Hearing Officer - [email protected] Dear Planning Commission,
I'm writin@ to bring to your attention a serious credibility and compliance issue invoLving a pending special use permit for a proposed sober Living home at 14301 Baker Street, governed by Costa Mesa Municipal Code's 13-311.

At the public hearing, the applicant was directly asked whether they were already operating a sober living or recovery residence at the property. The hearing transcript reflects the following exchange:
"Hearing Officer: There was a comment made earlier by one of the public speakers about you aLready operating this particular Location prior to obtaining the approvals. Do you have any comments with respect to that?"
"Applicant: No, we're not operating any type of sober Living there. I do have a couple tenants that are Living there, but they have nothing to do with sober living or recovery." "Hearin@ Officer: So if you are approved, what happens with the people who are currently there?" "Applicant: They already have a plan to go somewhere else." That testimony is directly contradicted by a County of Orange Health Care Agency contract I have obtained and provided. The document is Contract No. MA-042-19010252, Amendment No. 7, titLed "Recovery Residence Services," between the County of Orange and The Stephouse Recovery, Inc.

This County contract:
ii Hasbeenineffectsince20l8,withrenewaLsthroughJune30,2023 Is administered by the County Health Care Agency
Requires operation of an Orange County Sheriff-certified recovery residence And explicitly lists 1 601 Baker Street, Costa Mesa as an approved service location This matters because !l 13-311(a) treats operation of a group home as a defined, regulated condition. The code states that no person may open or operate a group home, or begin employment associated with one, unless the required disclosures have been made and approval obtained. There is no concept of informal or transitional operation under the code. -12-
465
As a result, the applicant's statement at the hearing that they were "not operating any type of sober Living" is directlyinconsistent with the County contract authorizing recovery residence services at the same address.

That inconsistency triggers !l 13-311 (b%11 which requires denial or revocation of a special use permit when an owner or operator has provided materially false or misleading information or omitted pertinent information.

I respectfully ask that this contradiction be reviewed carefully before any permit is approved or allowed to stand.

Inaddition,thepropertyatl601 BakerStreethasbeenpublicLyadvertisedontheoperator's website as a recovery residence. The interior photographs shown on the website match the historical ZiLLow Listing photos for this specific property, confirming the location being marketed.

Archived versions of the websit , '
that this property has been displayed and promoted as a recovery residence for years.

Under Costa Mesa MunicipaL Code n 13-311 (a%l ), no person may open or operate a grou p home until the required disclosures have been provided and approval obtained. Publicly marketing and holding out a property as a recovery residence constitutes operational activity, not passive ownership. Advertising the property as a recovery residence while simultaneousLy representing at the hearing that no sober living use was occurring raises a materiaLinconsistency that should be reviewed under @ 13-311 (b)(1 ).

Thankyou foryourtime and attention to this matter.

Sincerely,
Wyatt Russell
-13-
466
From: GREEN, BRENDA
To: PARTIDA, ANNA
Subject: FW: PC Hrg - 02-23-2026 - Public Comment - Public hearing item 1 Date: Monday, February 23, 2026 5:37:53 PM
Attachments: 02-23-2026 LT PC objecting to recd code amd per HE housing program (SENT).pdf Exhibit 1-5.pdf
image001.wmz
image002.png
image003.png
image004.png
image005.png
image006.png

Respectfully,
Brenda Green
City Clerk
City Clerk’s Office |
(714) 754-5221
77 Fair Drive | Costa Mesa | CA 92626

As City Hall has reopened, we encourage the public to take advantage of our appointment system.

Appointments can be made at www.costamesaca.gov/appointments. Please note that It is required that all guests check in with our Concierge Staff, located on the 1st Floor Lobby, upon arrival at City Hall.

From: Christopher Brancart <[email protected]>
Sent: Monday, February 23, 2026 11:34 AM
To: HALLIGAN, MICHELLE <[email protected]>; MCGILL, ANNA <[email protected]>; TAI, CARRIE <[email protected]>; CARON, MARTINA <[email protected]>; COLGAN, JULIE <[email protected]>; OOSTERHOF, NAOMI <[email protected]>; PARTIDA, ANNA <[email protected]>; CITY CLERK <[email protected]>; PLANNING INFO <[email protected]>
Subject: PC Hrg - 02-23-2026 - Public Comment - Public hearing item 1

Please see the attached letter regarding tonight's public hearing before the Planning Commission, item 1, re code amendments to implement the City's Housing Element.

The exhibits referenced in the attached letter are submitted in a separate file, Exhibits 1-5.

Please post this comment and include it in tonight's hearing record.

Thank you.

--
Christopher Brancart
Brancart & Brancart
-14-
467
(650) 879-0141 (voice)
(650) 879-1103 (fax)
CONFIDENTIALITY NOTICE: This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, please call me.

Thank you.

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Report any suspicious activities to the Information Technology Department. -15-
468

BRANCART & BRANCART

ATTORNEYS AT LAW
Christopher Brancart P. O. BOX 686 Telephone (650) 879-0141 Elizabeth Brancart PESCADERO, CA 94060 Facsimile (650) 879-1103 www.brancart.com
Street Address
8205 Pescadero Road
Loma Mar, California 94021
February 23, 2026
Via Email and Facsimile
Michelle Halligan, Sr Planner
Anna McGill, Adv Planning Mgr
Carrie Tai, Director
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Fax: (714) 754-4856
[email protected]
[email protected]
[email protected]
Jeffrey Harlan, Chair
Planning Commission
City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92626
Fax: (714) 754-5028
[email protected]
[email protected]
[email protected]
Re: Planning Commission Agenda: Public Hearing Item 1
Meeting: February 23, 2026
Missed Opportunity: Objections, Issues, and Concerns
Dear Gentlepersons:

On February 9, 2026, the Planning Commission conducted a public hearing and adopted a resolution recommending code amendments to implement the following Housing Programs pursuant to the City’s Sixth Cycle (2021–2029) Housing Element:

1. Program 2O (Definition of Single Housekeeping Unit): That the City will “review and revise the definition of ‘single housekeeping unit’ within the zoning code to provide greater flexibility in consideration of accommodating a variety of household situations for related and unrelated individuals living together.”
-16-
469
Planning Commission
February 23, 2026