Soledad City Council
October 2, 2024

I. CALL TO ORDER
II. ROLL CALL
III. PUBLIC COMMENT - CLOSED SESSION
IV. CLOSED SESSION
V. CLOSED SESSION REPORT

CITY OF SOLEDAD

JOINT CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AND SUCCESSOR

HOUSING AGENCY REGULAR MEETING AGENDA
WEDNESDAY, OCTOBER 2, 2024

CITY HALL, COUNCIL CHAMBERS
6:00 PM
The public meeting will open at 6:00 p.m. and, after taking public comment for closed session items, the Council will immediately recess to closed session.

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Welcome to your City of Soledad City Council/Successor Agency Meeting. Your City Councilmembers/Agencymembers are:

Mayor Anna Velazquez
Mayor Pro Tem Maria Corralejo
Councilmember Fernando Cabrera
Councilmember Fernando Ansaldo-Sanchez
Councilmember Evarista Banuelos
At this time, any member of the public may address the Council/Agency on Closed Session items appearing on the agenda. Speakers shall have limited time of three (3) minutes. Please be brief and to the point.

The City Council will recess to closed session pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the City is a party: Lepper v. City of Soledad, et al. 1 1
VI. PLEDGE OF ALLEGIANCE
VII. ADDITIONS/MODIFICATIONS TO THE AGENDA
VIII. PUBLIC COMMENT
IX. COUNCIL PRESENTATIONS

1. A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as National Breast Cancer Awareness Month.

2. A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as National Alcohol and Drug Addiction Recovery Month.

3. A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as Domestic Violence Awareness Month.

4. A Proclamation of the City of Soledad Proclaiming the month of October 2024 as LGBT month.

X. CONSENT CALENDAR

1. Minutes
Items of business may be added to the agenda upon a motion adopted by a minimum 2/3 vote finding that there is a need to take immediate action and that the need for action came to the attention of the City subsequent to the agenda being posted. Items may be deleted from the agenda upon request of staff or upon action of the Council.

At this time any member of the public may address the City Council on items not appearing on the agenda and items of interest to the public that are within the jurisdiction of the Council. A public comment card should be filled out completely to ensure the speaker is called upon to give comment. Public comments are generally limited to three (3) minutes; the mayor may further limit the time for public comments depending on the agenda schedule. Please be brief and to the point.

No action or discussion shall be taken on an item not appearing on the agenda.

Attachments:

Staff Report
Attachments:

Staff Report
Attachments:

Staff Report
Attachments:

Staff Report
Attachments:

Staff Report
Minutes of 09-18-2024
2 2

2. Warrants

3. Accept by Minute Motion an Update on the Emergency Declaration Regarding the City's Water System From the July 31, 2024, Soledad City Council Meeting

4. Public Works Department Activity Report

5. Parks and Recreation Activity Report

6. Human Resources Activity Report

7. Office of Community Engagement Activity Report

8. Community & Economic Development Department Activity Report COUNCIL ACTION: ________________________________
Attachments:

Staff Report
055420 - 055645
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
Exhibit A - Photos
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
August 24 Activity Report.pdf
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
3 3

9. Fire Department Activity Report

10. Police Department Activity Report

11. City Hall Holiday Office Closure from Christmas Eve through New Year's Day

12. Resolution No. 6162, a Resolution of the City Council of the City of Soledad Approving an Increase to the Budget Limit to $4,000 for the Sidewalk Repair/Replacement Cost Share Program XI. PUBLIC HEARING NO. 1

1. Public Hearing for Resolution No 6164, A Resolution of the City Council of the City of Soledad Approving the Revised Homebuyer Assistance Program and Economic Development Business Assistant Loan Program Guidelines
Building Permits Issued Sept. 2024.pdf
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
Soledad Activity Report 9.2024.pdf

9.2024 Call Volume.pdf
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
September - Department Activity Report.pdf
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
COUNCIL ACTION: ________________________________
Attachments:

Staff Report
Resolution No. 6162
Exhibit A
COUNCIL ACTION: ________________________________
Receive the Staff Report
Open the Public Hearing
Close the Public Hearing
Council Action
Attachments:

Staff Report
Resolution No. 6164
4 4
XII. BUSINESS

1. Resolution No. 6163, A Resolution of the City Council of the City of Soledad Approving the Reorganization of the Public Works Department Wastewater Facility Operations Staff XIII. MAYOR'S REPORTS AND ACKNOWLEDGEMENTS
XIV. COUNCILMEMBERS' REPORTS AND ACKNOWLEDGEMENTS
XV. CITY MANAGER'S REPORT
XVI. FUTURE AGENDA ITEMS
XVII. ADJOURNMENT
Public Hearing Notice
City of Soledad Homebuyer Program Guidelines 2024-DRAFT Soledad Business Assistance Loan Program 2024 - Draft
Attachments:

Staff Report
Resolution No. 6163
Exhibit A
CURRENT - Public Works Org Chart
PROPOSED - Public Works Org Chart
COUNCIL ACTION: ________________________________
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact Deputy City Clerk Darlene Noriega at (831) 223-5014. Notification of at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (RCRF 35.102-35.104).
“Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 248 Main Street, Soledad, California during normal business hours.”
En caso que usted necesite ayuda en leer o en entender este aviso de Junta Publica, usted puede ponerse en contacto con la oficina del Edificio Municipal en 248 Calle Main o llamar al número (831) 223-5014, y el aviso será traducido para usted.

Advanced submittal of public comments via email are due by 2:00 P.M. on the day of the scheduled meeting to the Deputy City Clerk at [email protected] Comments are limited to 250 words or less and effort will be made to read your comment into the record, but some comments may not be read due to time limitations. The City Clerk will read email comments, provided that the reading shall not exceed three (3) minutes. The email comments submitted shall become part of the record.

Comentarios públicos por correo electrónico deben realizarse no más tarde de las 2:00 p.m. el día de la reunión programada y deben ser enviados al Secretario de la Ciudad a [email protected]. Los comentarios son limitados a 250 palabras o menos y se hará un esfuerzo para leer su comentario en el registro, pero es posible que algunos comentarios no se lean debido a limitaciones de tiempo. El Secretario de la Ciudad leerá los comentarios por correo electrónico, siempre 5 5
que la lectura no exceda los tres (3) minutos. Los comentarios enviados por correo electrónico pasarán a formar parte del registro.
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09/27/2024

CERTIFICATION
I, Megan Hunter, City Clerk of the City of Soledad, do hereby certify that a copy of the foregoing Joint City Council/Successor Agency Regular Meeting Agenda was posted at City Hall by Friday, September 27, 2024, at 5:00 p.m.

Megan Hunter, City Clerk/Manager
7 SUBJECT: A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as National Breast Cancer Awareness Month.

TO: Honorable Mayor Velazquez and City Council
FROM: Jesus Valenzuela, Community Engagement Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 1.
8 SUBJECT: A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as National Alcohol and Drug Addiction Recovery Month.

TO: Honorable Mayor Velazquez and City Council
FROM: Jesus Valenzuela, Community Engagement Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 2.
9 SUBJECT: A Proclamation of the City Council of the City of Soledad Proclaiming October 2024 as Domestic Violence Awareness Month.

TO: Honorable Mayor Velazquez and City Council
FROM: Jesus Valenzuela, Community Engagement Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 3.
10 SUBJECT: A Proclamation of the City of Soledad Proclaiming the month of October 2024 as LGBT month.

TO: Honorable Mayor Velazquez and City Council
FROM: Jesus Valenzuela, Community Engagement Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 4.
11 SUBJECT: Minutes
TO: Honorable Mayor Velazquez and City Council
FROM: Darlene Noriega, Deputy City Clerk

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 1.
12 Minutes
City of Soledad
Joint City Council/Successor Agency/Housing Authority/Successor Housing Agency/ Regular Meeting
September 18, 2024

CALL TO ORDER
Mayor Velazquez Called the Joint City Council/ Successor Agency/ Housing Authority/ Successor Housing Agency/ Regular Meeting to order at 6:00 p.m.

ROLL CALL
The Following Councilmembers/Agency members were present when the meeting was called to order:

Mayor/Chair Anna M. Velazquez
Mayor Pro Tem/Vice Chair Maria Corralejo
Councilmember/Agency Member Fernando Cabrera
Councilmember/Agency Member Fernando Ansaldo-Sánchez
Councilmember/Agency Member Evarista Bañuelos

THE FOLLOWING COUNCILMEMBER WAS ABSENT
None

PUBLIC COMMENT ON CLOSED SESSION ITEMS
None

CLOSED SESSION

1. The City Council will recess to closed session pursuant to Government Code Section 54956.8 to give instructions to the City’s negotiator concerning the lease of property located on the corner of Gabilan and Prado Drives, Assessor Parcel Number 022-321-001-000. Instructions may include price and terms of payment.

MEETING RECESS TO CLOSED SESSION
Mayor Velazquez recessed to closed session at 6:03 p.m.

MEETING RECONVIENED FROM CLOSED SESSION
Mayor Velazquez reconvened the meeting at 6:37 p.m.
13 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

CLOSED SESSION REPORTS
City Attorney Mike Rodriquez reported with respect to item no. 1, The city met with the city’s negotiator and provided direction. No other reportable actions taken.

PLEDGE OF ALLIGIANCE
Craig Stephens led the Pledge of Allegiance

ADDITIONS/MODIFICATIONS TO THE AGENDA
Mayor Velazquez requested the following modification to be made to the agenda:
 Mayor Velazquez requested to move Business items no. 4 and 5 to be discussed before Business item no. 3.

Motion: Councilmember Ansaldo-Sanchez made motion to approve the requested modification. Motion was seconded by Councilmember Banuelos and carried by unanimous vote:

Action
Ayes: Ansaldo-Sánchez, Bañuelos, Cabrera, Corralejo, Velazquez Noes: None
Abstain: None

Absent: None

PUBLIC COMMENT
Assistant Engineer Alex Ramos introduced the new City of Soledad Assistant Engineer Juan Huerta.

Assistant Engineer Juan Huerta thanked the City for the opportunity to serve as an Assistant Engineer.

PRESENTATIONS

1. A Proclamation of the City Council of the City of Soledad Proclaiming September 14-22 as Latino Conservation Week was presented to Ecology Action Leann Leon

2. A proclamation of the City Council of the City of Soledad was presented to Mr. Juan Baltierra, Honoring September 20, 2024, as POW/MIA Recognition Day.

3. A proclamation of the City Council of the City of Soledad proclaiming September 15 – October 15 as Hispanic Month was presented to Mr. Jose Lopez. Mr. Lopez also received a Certificate of Recognition as Soledad’s National Hispanic Month role model. 14 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

CONSENT CALENDAR
There were no public comments.

Mayor Velazquez requested to have separate discussion regarding item number C-1.

Councilmember Ansaldo-Sanchez requested to have separate discussion regarding item numbers C-5.

Motion: Councilmember Cabrera made motion to approve items C-2, C-3, C-4, and C-6 Motion was seconded by Mayor Pro Tem Corralejo and carried by unanimous vote:

Action
Ayes: Cabrera, Ansaldo-Sánchez, Bañuelos, Mayor Pro Tem Corralejo, Velazquez Noes: None
Abstain: None

Absent: None
C-2. Warrants 055408 - 055419
C-3. Accept by Minute Motion an Update on the Emergency Declaration Regarding the City's Water System From the July 31, 2024, Soledad City Council Meeting C-4. Resolution No. 6159, A Resolution of the City Council of the City of Soledad Adopting Paid Holidays for Calendar Year 2025
C-6. Resolution No. 6161, a Resolution of the City Council of the City of Soledad Approving a Consulting Services Task Order with MNS Engineers to Prepare a Hazard Mitigation Grant Program (HMGP) Application for the City’s Backup Emergency Generators Project and Authorizing the City Manager to Execute the Task Order for an Amount not to Exceed $75,652 Motion: Councilmember Cabrera made motion to approve items C-1 and C-5 Motion was seconded by Councilmember Ansaldo-Sánchez and carried by unanimous vote:

Action
Ayes: Cabrera, Ansaldo-Sánchez, Bañuelos, Mayor Pro Tem Corralejo, Velazquez Noes: None
Abstain: None

Absent: None
C-1. Joint City Council/Successor Agency Regular Meeting Minutes of 09/04/2024.

Mayor Velazquez would like the discussion of Consent Item VII.14. Resolution No. 6153 regarding criteria for city sponsorship, added to the 09/04 meeting minutes.

C-5. Resolution No. 6160, A Resolution of the City Council of the City of Soledad Approving a Consultant Services Agreement with BFS Landscape Architects in an Amount not to Exceed $88,700 for Design Services for the Future Development of Toledo Basin Park (Gabilan Pond Park) and Authorizing the City Manager to Execute Said Agreement for $88,700
15 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

BUSINESS

1. Resolution No. 6156, A Resolution of the City Council of the City of Soledad Approving In-Kind City Services, Waiving Park Fee, Waiving Police Department Special Event Permit Fee, and Approving the Street Closure of Front Street Between Main Street and Soledad Street for the Inaugural Soledad Vine & Dine: A Food and Wine Experience (Continued item) Community Engagement Coordinator Henry Aguilar presented the staff report.

Councilmembers had several comments regarding the item and suggestions for future events.

There were no public comments.

Motion: Councilmember Banuelos made motion to approve Resolution No. 6156. Motion was seconded by Mayor Pro Tem Corralejo and carried by unanimous vote:

Action
Ayes: Banuelos, Corralejo, Ansaldo-Sánchez, Cabrera, Velazquez Noes: None
Abstain: None

Absent: None

2. Consider Proposed Changes to the General Plan Advisory Committee and Provide Direction to Staff
City Manager Hunter presented the staff report.

There was no public comment.

Councilmembers had numerous comments and suggestions.

Minute Motion: Councilmember Cabrera made motion to dissolve the current General Plan Advisory Committee and move forward with the direction provided in discussion. Motion was seconded by Councilmember Ansaldo-Sanchez and carried by unanimous vote:

Action
Ayes: Cabrera, Ansaldo-Sánchez, Banuelos, Corralejo, Velazquez Noes: None
Abstain: None

Absent: None

4. Consideration of Sponsoring the 2025 4th of July Fireworks Show Councilmember Banuelos recused herself since she is an active member of the 4th of July Committee.

City Manager Hunter presented the staff report.
16 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

4th of July Committee member Pauline Tomassini submitted a written public comment for the City Clerk to read into the minutes:

Ms. PaulineTomasini hopes the City of Soledad will co-sponsor the 2025 4th of July fireworks event, both monetarily and with in-kind services.

Councilmembers had several comments about the item.

Mayor Velazquez would like to have community outreach and discussions with community members regarding the City’s future funding of fireworks.

City Manager Hunter asked if the City should be supporting the 4th of July Committee in their fundraising efforts and sponsor in shared costs.

The council was in consensus that the City will not move forward with helping in the 4th of July committee efforts of fundraising, however they will move forward with the sponsoring of the 2025 4th of July fireworks show by paying the deposit of the fireworks cost, which was included in the 24/25 budget.

Motion: Councilmember Ansaldo-Sanchez made motion to move forward with making the deposit payment for the 2025 4th of July Fireworks show, and to continue the co-sponsoring conversation.

Motion was seconded by Councilmember Cabrera and carried by following vote:

Action
Ayes: Ansaldo-Sánchez, Cabrera, Corralejo, Velazquez
Noes: None
Abstain: Banuelos

Absent: None
Councilmember Banuelos returned to the meeting.

The council recessed for a short break.

The council returned to the meeting.

5. Appointment of an Alternate for the Salinas Valley Soledad Waste Authority Board City Manager Megan Hunter presented the staff report.

Motion: Councilmember Ansaldo-Sanchez made motion to nominate Councilmember Banuelos as appointment alternate for the Salinas Valley Solid Waste Authority. Motion was seconded by Mayor Pro Tem Corralejo and carried by unanimous vote:

Councilmember Banuelos accepted the nomination.

Action
Ayes: Ansaldo-Sánchez, Corralejo Cabrera, Banuelos, Velazquez Noes: None
17 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

Abstain: None

Absent: None

3. Current Housing Work Program and Policy/Program Priorities Housing Analyst Beatriz Trujillo presented the staff report and PowerPoint presentation.

Councilmember Ansaldo-Sanchez would like to develop a rental registry database and offer people information regarding their rights as renters. He would like to see resources for people who do not fit in the affordable housing criteria.

City Manager Hunter said the Housing Element includes specific programs for tenant protections, displacement, and disparities. The City is also looking at a first-time homebuyer’s program that may involve downpayment assistance, and different housing types.

Mayor Pro Tem Corralejo agrees that having a mix of housing types is important. She is pleased that the City will be adding a temporary position of Homeless Services Coordinator.

Mayor Velazquez would like to see the City move forward with having more than one person in the housing department, because housing is a priority, and it is going to take more than one person to get the City to where it needs to be. She agrees that the first-time buyer down payment assistance program is important and will provide the opportunities to retain members of the community. She also agrees with the Councilmember Ansaldo-Sanchez idea of providing people information on their renters’ rights, and creation of a renters registry.

There were no public comments.

Action
Councilmembers received the presentation and provided direction to staff.

MAYOR’S ANNOUNCEMENTS AND REPORTS

1. On 09/05 she participated in the Coalition of Homeless Services Providers.

2. On 09/06 she participated in the Monterey County Mayors Association meeting.

3. On 09/06 she attended the 10th Anniversary celebration of the Epicenter.

4. On 09/09 she attended the MST Board of Directors meeting.

5. On 09/09 she had a phone call with Monterey County Arts Chief Program Officer Karyn Lee-Garcia.

6. On 09/11 she attended Patriots Day event.

7. On 09/12 she attended the California Coastal Commission meeting.

8. On 09/14 she provided a welcome at the Domestic Violence and Awareness Training hosted by Lideres Campesinas for Soledad, Greenfield, and Salinas.

9. On 09/14 and 09/15 she drove around Soledad and visited many garage sales.

10. On 09/17 she attended the Gateway Center open house.

COUNCILMEMBERS’ ACKNOWLEDGEMENTS AND REPORTS
Mayor Pro Tem Corralejo had 5 items to report:

1. She had a call with Monterey County Arts Chief Program Officer Karyn Lee-Garcia regarding the Front Street murals.

2. She attended the Day of Remembrance at Soledad City Hall 18 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

3. She attended the Gateway open house.

4. She attended the weekly meeting with City Manager Megan Hunter

5. She had further conversation with a Greenfield resident regarding the Thanksgiving South County event.

Councilmember Bañuelos had 5 items to report:

1. On 09/11 she attended the Day of Remembrance ceremony at Soledad City Hall.

2. On 09/12 she attended the Soledad Cemetery District meeting.

3. She had a Zoom call with Monterey County Arts Chief Program Officer Karyn Lee-Garcia regarding the Front Street murals.

4. On 09/17 she attended a meeting with City manager Hunter regarding an agenda briefing.

5. On 09/17 she attended the Community and Economic Development open house.

Councilmember Ansaldo-Sánchez had 5 items to report.

1. On 09/06 he met with the Monterey County Arts Chief Program Officer Karyn Lee-Garcia regarding the Front Street murals.

2. On 09/11 he attended the Patriots Day event at Soledad City Hall.

3. On 09/11 he met with the Monterey County Housing Resources Center.

4. On 09/16 he met with Senator Laird regarding collected data and AI

5. On 09/17 he toured the Soledad Heath Care District.

Councilmember Cabrera had 7 items to report:

1. On 09/06 he attended the Epicenters 10-year anniversary.

2. On 09/09 he attended the TAMC Committee meeting.

3. On 09/11 he attended the Day of Remembrance event at Soledad City Hall.

4. On 09/11 he had conversation at the Soledad Historical Society group.

5. On 09/17 he met with City Manager Megan Hunter regarding an agenda briefing.

6. On 09/17 he attended the Gateway open house.

7. On Monday he met with Monterey County Arts Chief Program Officer Karyn Lee-Garcia regarding the Front Street murals.

CITY MANAGERS’ REPORT
City Manager Hunter reported 5 items:

1. She acknowledged Deputy City Clerk who did the logistics for the 09/11 event.

2. She attended the 3CE Operation Board meeting on 09/17, and the Board did recommend that the Policy Board adopt the budget without further increases.

3. 3CE will be looking for a new location for their office building and she has advocated to have the office located in Salinas due to that city being a midpoint location, and a majority of customers live in the valley areas.

4. She will be attending the ICMA Conference 09/21 through 09/25, Public Works Director Don Wilcox will serve as Acting City Manager during the conference dates.

5. The Feasibility Study for the Container Village has started.

FUTURE AGENDA ITEMS
Councilmember Cabrera did not request any future agenda items.

Councilmember Ansaldo-Sánchez requested 2 future agenda items:

1. He would like to have further conversation regarding the feral cats in Soledad.

2. He would like to receive a presentation regarding the Code Enforcement strategy regarding fireworks. 19 City of Soledad City Council/Successor Agency Regular Meeting Minutes of September 18, 2024.

Mayor Pro Tem Corralejo requested 1 future agenda item:

1. She would like to receive clarification regarding criteria for City Sponsored events and in-kind services provided.

Councilmember Banuelos requested 2 future agenda items:

1. She would like to have discussion about a Veterans Day event.

2. She would like to have discussion regarding the Christmas Parade and Christmas Tree lighting.

Mayor Velazquez requested 4 future agenda items:

1. She would like an update regarding the Lions Hall facility.

2. She would like an update on the revenues from the Hot Summer Days car show event.

3. Senator Caballero will be transitioning out of the District and will no longer be representing Monterey County, and all councilmembers will be receiving an invitation. She would like the City to have the apparatus before she departs so she can be a part that celebration.

City Manager Hunter said the apparatus will not be received until January 2025; however, the City will be sure to invite Senator Cabellero to any planned celebration for that event.

ADJOURNMENT
Meeting adjourned at 10:46 p.m.

Minutes Approved: October 02, 2024
_______________________________________
ANNA M. VELAZQUEZ, Mayor/Chair
________________________________________
MEGAN HUNTER, City Manager
20 SUBJECT: Warrants
TO: Mayor Anna Velazquez and City Council
FROM: Mike Howard, Finance Director

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 2.
21 22
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25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 44
45 46
SUBJECT: Accept by Minute Motion an Update on the Emergency Declaration Regarding the City's Water System From the July 31, 2024, Soledad City Council Meeting
TO: Honorable Mayor Velazquez and City Council
FROM: Donald Wilcox, Public Works Director
MEETING DATE: October 2, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 3.

Recommendation
It is recommended that the City Council receive an update on the Emergency Declaration regarding the City's Water System from the July 31, 2024 Soledad City Council Meeting.

Executive Summary
On Tuesday, July 30, 2024, Well No. 11, one of Soledad’s highest-producing and the only submersible potable water well was found to be out of service, and the main components, the pump and motor, needed to be replaced. Time was of the essence due to this being our highest water usage season and another well was also down, so Soledad City Council held a Special Meeting on Wednesday July 31, 2024 and issued a declaration of an emergency to relieve the City of formal bidding requirements to enable expeditious repairs to Well No. 11, and authorized the City Manager to spend an amount not to exceed $120,000 for equipment and services to get Well #11 back in service. The new motor has arrived but the estimated arrival date for the pump of between November 19-December 3 as pumps are custom made to fit the well depth, aquifer, motor, system pressure, etc., which takes time.

Background
On Tuesday, July 30, 2024, Well No. 11, Soledad’s highest producing well, was found to be out of service. This happened while Well No. 10 was down for scheduled maintenance and Well No. 6 was down due to vibration. This created a situation where the water reservoirs could not be kept full as necessary for adequate water storage as needed in case of emergency. Soledad City Council held a special meeting on July 31, 2024 in order to declare an emergency so that repairs to well #11 could be performed without delay.

Since that time, Well #10 was placed back in service and Well #6 was placed back in limited service, which enabled the complete filling of the water reservoirs. Well #11 remains out of service, so the emergency conditions considered by the Council on July 31, 2024 persist. Staff have used the 47 authority granted by Council to order a new pump and motor via emergency contracting procedures for well No. 11.

Review & Analysis
The old pump/motor was shipped to a company in Texas that can evaluate it towards being rebuilt to be used as a spare, but we have yet not received an estimated cost or schedule. A new pump and motor were ordered through Maggiora Bros Drilling. A new pump and motor totaling $88,470 were ordered on August 27, 2024. The new motor has arrived but the estimated arrival date for the pump of between November 19-December 3 as pumps are custom made to fit the well depth, aquifer, motor, system pressure, etc., which takes time.

August and September are the highest water demand months. The Soledad water system can keep up with the demand with one well out of service, which we are doing but without a backup in case another well goes down. An analogy for this situation is like driving down a road without a spare tire. Well repairs also take significant time, so when a well goes down in the summer, time is of the essence to arrange repairs for a remote water system as there is no adjacent water system to connect to as a backup.

Since the subject expedited procurement for a new well pump and motor has been made, staff may recommend closing this Declaration at the next Council meeting.

Financial Considerations
On July 31, 2024, Soledad City Council authorized repairs to Well No. 11 as necessary and up to $120,000, to be funded by the Water Operations Fund #309 – Reserves Alternatives
Alternative 1 – Proceed as recommended
Provide Staff with alternate direction
Planning/CEQA
The proposed repair work does not require analysis under the California Environmental Quality Act (CEQA), based on 14 California Code of Regulations Section 15301, which provides that repair and maintenance of existing public facilities and mechanical equipment that does not entail expansion of a former use is exempt from CEQA.

Public Notice Requirements
None required.
48 SUBJECT: Public Works Department Activity Report
TO: Honorable Mayor and City Council
FROM: Donald Wilcox, Public Works Director, Alex Ramos, Assistant Engineer

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
Projects and Activities
City Facility Tour
Public Works had an exciting field trip with Council Members at various Soledad facilities such as the WRF, Los Coches Adobe, Community Center, and La Cuesta Water Tanks Facility!
Front Street Maintenance Project
This project continues to make progress with the recent completion of the 600 block of Front Street. The following tentative schedule will include the remaining concrete work scheduled for the following few weeks in addition to irrigation, tree well conduit, and lowering iron.

Veteran’s Park Recycled Water Project
This project is now in full swing, with an estimated completion date of early October. LoneStar Landscape making great progress in converting the existing irrigation over to recycled water in the form of purple infrastructure. We will not start using recycled water until the citywide project is completed.

The existing park shall continue to use potable water for irrigation.

Community Center Modernization Project
The community center is wrapping up work in the kitchen with the approval of the recent change order taken to the council. The mold issue has been addressed on the south wall of the kitchen and looks remarkable.

Additionally, work is being made on the Stage wall repairs! Projects out for Bids (PlanetBids) Updates:

Upcoming Projects:

Manhole Replacement Project (West of 101) to be put out to bid here shortly in which Public Works shall repair or replace manholes for the trunk lines that cross under the farm fields and feed into the Water Reclamation Facility.

AGENDA ITEM NO. 4.
49 Anticipated Bid Date: Mid-October
Anticipated Close Date: Late-October/Early November
Maintenance of the two one-million gallon La Cuesta Water Reservoirs to be put out to bid soon, in which Public Works shall coordinate the necessary work to service the water tanks for maintenance/routine cleaning and possibly painting the inside of the tank(s).

Anticipated Bid Date: Mid-October
Anticipated Close Date: Late-October/Early November
Water Department Activities
Illicit Discharge
Public Works Department responded to a large sediment spill on Front Street near the underpass and quickly began clean up during peak rush hour traffic.

As part of the Municipal Stormwater Program, the city operates under the MS4 Permit that requires local agencies like Soledad to report “illicit discharges” anything other than stormwater that enter upon city infrastructure like storm drains, streets, curbs, channels, and catch basins.

Confined Space Training/Storm Manhole Cleaning
PW was cross-training new staff on how to perform confined space training to clean the storm manholes on Front Street!
Operator in Training Class
Castroville had an Operator in Training Class PW Staff attended to receive additional support as an OIT. This class proved to be beneficial for the new staff in the water department.

Prep Valve Replacement
PW is gearing up to replace old water valves in the older sections of Soledad.

This is a key role in being able to successfully isolate certain sections of the water distribution system without having a whole sector of town without water. These new water valves should allow Staff to perform quick and efficient repairs with minimal disturbance to Soledad residents.

Water Reclamation Facility Activities:

WRF Preparation
PW Staff rented a ripper to perform the necessary work on the Rapid Infiltration Basins (RIBs) and Storm basins in preparation for the upcoming wet season. This enables for the best percolation possible! Additionally, Staff was also performing weed abatement efforts in preparation for the upcoming USACE Levee Work to begin within the next few days!
As part of the upcoming WRF Metal Building (Vehicle Storage Building) project, the building code requires a fire suppression system within the building. PW Staff was testing the water pressure of the system to ensure there is adequate fire flow to operate the sprinklers.

WRFAssessment
Black & Veatch met with PW Staff on 9/11 to perform the field visit assessment at the Water Reclamation Facility. This whole day assessment 50 consisted of developing a list of concerns, trouble areas, ideas, and overall consideration of the facility given it’s 14+ years of age and wear and tear from operating 7 days a week 365 days a year.

Additionally, B&V met with PW Staff on 9/23 about the O&M Workshop to discuss further in detail what maintenance staff has done within the plant since it came online in January 2010. This included an in-detail discussion of what preventative maintenance is performed, what has been replaced/changed from the original design, what items need to be replaced going forward, Standard Operating Procedures (SOPs), Safety Concerns, what may have been left out from the original project that would prove to be beneficial to have in place now to operate the facility, and confirm information provided from the field visit with Maintenance Staff. 51 52
Unclassified
Description
Taken Date
09/23/2024 at 09:02 am
Upload Date
09/23/2024 at 09:06 am
Uploaded By
Tony Scalise
File Name
15931CDA-B45C-4F30-A…
Wallace Group
Printed on Mon Sep 23, 2024 at 05:05 pm PDT
Job #: 1001-0004-00 Soledad - Front Street Maintenance Project Front St.

Soleda, California 93960

Unclassified
Description
Taken Date
09/20/2024 at 12:08 pm
Upload Date
09/23/2024 at 07:09 am
Uploaded By
Tony Scalise
File Name
AD319908-5314-4720-B…
Wallace Group
Printed on Mon Sep 23, 2024 at 05:05 pm PDT
Job #: 1001-0004-00 Soledad - Front Street Maintenance Project Front St.

Soleda, California 93960

Unclassified
Description
Taken Date
09/19/2024 at 01:45 pm
Upload Date
09/19/2024 at 01:47 pm
Uploaded By
Tony Scalise
File Name
82D1EFFF-B3D3-44B8-9…
Wallace Group
Printed on Mon Sep 23, 2024 at 05:05 pm PDT
Job #: 1001-0004-00 Soledad - Front Street Maintenance Project Front St.

Soleda, California 93960

Construction
Description
Taken Date
09/16/2024 at 09:04 am
Upload Date
09/16/2024 at 09:06 am
Uploaded By
Tony Scalise
File Name
667B1A1A-D352-4B11-9…
Wallace Group
Printed on Mon Sep 23, 2024 at 05:03 pm PDT
Job #: 1001-0003 Soledad - Veterans Park Recycled Water Project 445 Ortiz St
Soledad, California 93960

Construction
Description
Taken Date
09/16/2024 at 08:56 am
Upload Date
09/16/2024 at 09:05 am
Uploaded By
Tony Scalise
File Name
9BA6AEBB-7A1A-4BC1-B…
Wallace Group
Printed on Mon Sep 23, 2024 at 05:03 pm PDT
Job #: 1001-0003 Soledad - Veterans Park Recycled Water Project 445 Ortiz St
Soledad, California 93960

58 59
60 61
62 63
64 65
66 67
68 69
SUBJECT: Parks and Recreation Activity Report
TO: Honorable Mayor Velazquez and City Council
FROM: Jessica Potts, Parks and Recreation Director

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 5.
70 Fitness Gym Total Usage
57 176 233
228 408 636
0 8 8
1005 1005
674 674
0 0
53 53
39 39
35 35
2091 592 2683
19 71
49 136
0 0
0 25
13 313
Fitness Gym
103
6 74
1 71
26 12
293 0
* (# of individuals based on a family size of 4)
Family – Membership*
Employee
Totals
August 31, 2024 Active Memberships Total 293
Adult – Membership
Adult – Couple
Teen – Membership
Youth – Membership
Youth Mini – Membership
Senior – Membership
City Use/SPR Partner: (National Night Out, Public Wks Mtg, Cal Fire Mtg, GFCom Science Wkshop ) **ttl= #check-ins (daily served) reg= # registered
Estimated Program/Outreach Served Total
Membership Report
Community Center Active Membership
Fitness Classes
Adult Activities: (Weekly Games)
Senior Activities: Social (monthly program- ttl), Cooking Class, Bingo, Fitness, Driving Wkshop Special Event/Activity: Park Pop-up (Lg events Attend unknown) City Sponsored/Waiver: (Celebration Nation-monthly)
School District Use:

Programs/Outreach (Registered Participants)
Pre-K Programming (Art & Science, Jr. Sports): Ages 2-5 (weekly-reg) Youth Programming (Art & Science, Dance & Drama): Ages 6-17 (weekly-reg) Camp: Ages 5-12 (daily/weekly-seasonal. Camp-30 max-ttl) Youth Sports: (5-13, Co-Ed, wkly practice & games- reg) (Basketball) Special Needs:

Employee – Membership
Family – Membership
*Discontinued Gym Membership due to program time decreasing available open gym time.

Total August 2024 Usage 2683
Program Report
Senior – Drop-in
Adult – Membership
Teen – Membership
Youth – Membership
Youth Mini – Membership
Senior – Membership
Recreation Staff Report
August 2024
Memberships & Drop-In Usage
Adult – Drop-in
Youth & Teen – Drop-in
71 PROGRAMS OF NOTE
-
-
-
-

COLLABORATIONS/OUTREACH/GENERAL
-
-
-
-
-
-
-
-
-
FACILITIES Council Waiver City/SPR
Use Rented
Sports Fields - Travel Ball, Softball, Soccer Orgs, SMRD 0 0 414.5 SCC Facility - Celebration Nation, NNO, PW Mtg,Cal Fire 3 11.5 6 Booked Completed Pending
General Public Event Rentals 0 1 0
ADA Stage Lift installation complete and waiting inspection. Cooking class, a partnership with Montery This will enable all programs that are held on the stage, like County Health plays and SUSD promotions to be fully accessible.

Presented to YPAR regarding recreation and safety in open spaces Met with Playground surfacing contraactor and SUSD to discuss safe playground surfacing options.

Mtg regarding Fast Charging infrastructure plans and options. Mtg regarding charging stations options for community Center
Mtg with BFS regarding impact fee related parks projects.

General operations, facilities upkeep, staff management Hours Used
Attended MBAISA insurance risk management webinar
SPR Break Camp. Over the 9 weeks of school summer break, SPR provided a fun and affordable program that kept between 20 -30 kids busy and engaged, building friendships, learning and playing, and building life long experiences and memories. 8 scholarships were applied for and granted for this program.

SPR recreation Pop-up in the Park at Santa Barbara Park. Free monthly recreation in your neighborhood event Introduce new and continued ongoing monthly program sessions Community Center and Kitchen Modernization project construction began. Weekly OAC meetings Continued meeting with San Andreas Regional Center regarding Fall Superhero Festival National Night Out help in Community Center. SPR provided a youth activity area with free games.

Senior Programs: Free senior cooking class and low impact fitness class in partnership with Monterey County Health Department, TAMC Safe driving workshop - one in English and one and in Spanish. 72 SUBJECT: Human Resources Activity Report
TO: Honorable Mayor Velazquez and City Council
FROM: Francine Uy, Human Resources Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
Open Recruitments:

Associate Planner/Senior Planner – Opened on 7/24/24. Open until filled.

Homeless Services Coordinator – Opened on 9/17/24. First review – Week of 10/7/24.

Maintenance Worker – Opened on 9/20/24. Closes on 10/4/24.

Police Officer – Continuous
Water Resources Manager – Re-opened on 9/9/24. Closes on 9/30/24. Water Reclamation OIT, I/II – Opened on 9/6/24. Continuous.

Vacancy Status Update:
(1) Associate Planner/Senior Planner – Vacated 8/10/24
(1) Homeless Services Coordinator – NEW position approved 8/21/24 (1) Information Technology Technician – Vacated 7/13/24. Candidate in the preemployment background process. (1) Maintenance Worker – Following internal promotion, date TBD. (4) Police Officer - Ongoing
(1) Water Resources Manager – To backfill vacated City Engineer 5/13/23. (1) Water Reclamation Shift Supervisor – Vacated 11/26/22 following internal promotion to WR CPO. Vacancy backfilled with temporary staffing. Incumbent is scheduled to take the exam on 10/14/24.
(1) Water Reclamation OIT (Collections) – New position approved FY 24/25. Internal promotion from PW Parks Maintenance. Divisional transfer date TBD.

Temporary Staffing:
(1) Water Reclamation Chief Plant Operator – Special assignment. (1) Office Specialist (Building) – Peak workload with development and ADUs. (1) Office Assistant (Police Department) – Peak workload with Records Division. (1) Maintenance Worker – Backfill for WC injury.
(1) Utility Maintenance Mechanic – Backfill vacant WR Shift Supervisor.

AGENDA ITEM NO. 6.
73 SUBJECT: Office of Community Engagement Activity Report TO: Honorable Mayor Velazquez and City Council
FROM: Jesus Valenzuela, Community Engagement Manager

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
Social Media Report for August 26-September 22
Facebook:

Reach: 15.4k – 7% increase
Content Interactions: 576 – 25.3% decrease
Page Visits: 1k – a 3.7% decrease
New follows: 37 new follows
Total followers: 4,789
Soledad – 40.2%
Women – 68.7%
Men – 31.3%
Most successful post: Garage Sale
Instagram
Reach: 2.8k – 71.1% increase
Content Interactions: 489 – 288.1% increase
Visits: 1.1k –49.1% decrease
New Followers: 47
Total followers: 1,679
Soledad –45%
Women – 65.3%
Men – 34.7%
Most successful post: Mural survey
Twitter
Data for Twitter is currently unavailable
POW/MIA Event
The Office of Community Engagement, along with Soledad Police Department and the City Clerk, organized a flag-raising ceremony for the POW/MIA flag. The event was well attended, and we had representatives from the American Legion and various Veterans groups.

AGENDA ITEM NO. 7.
74 September 11 Event
The Office of Community Engagement, the Soledad Police Department, Cal Fire, and the City Clerk, organized a 9/11 remembrance ceremony. The event was well attended, and we had coverage from KSBW.

Public Works
We have been updating the community about the Front Street maintenance program.

Website
The OCE has been working with various departments to keep the website current. With the support of each department, we have set up the Media Ad Hoc Committee that meets every month to discuss how we can keep the community up to date on what the City is working on.

Adult Civics Academy and YPAR
With the help of Yessica Ornelas, we completed the curriculum in preparation for the second cohort of the Civics Academy and for the Youth Council/Commissioners. We created a survey and are distributing it with the support of the first cohort. We will keep the Council updated on the progress.

Media Hit:

Telemundo: https://kion546.com/noticias_regionales/2024/09/19/la-ciudad-de-soledadcomparte-actualizaciones-del-plan-de-financiacion-estatal-con-respecto-a-viviendaspara-personas-sin-hogar/ KSBW: https://www.ksbw.com/article/soledad-honors-911-victims-california-firstresponders/62138846?utm_campaign=sndautopilot&fbclid=IwY2xjawFe059leHRuA2FlbQIxMQABHVrh0RDugqgNrSsHXK_ncj9SxRrjTSz8ScVkfezs9OqPT2Rc_YXyGQbkA_aem_oXU6VAz1jB5zbAWP6Re2uw 75 SUBJECT: Community & Economic Development Department Activity Report TO: Honorable Mayor Velazquez and City Council
FROM: Kao Nou Yang. Community & Economic Development Director

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
ECONOMIC DEVELOPMENT DIVISION UPDATES:

CDBG BUSINESS ASSISTANCE LOAN PROGRAM
The Business Assistance Loan Program currently has $452,500 in available funding.

Three local businesses have expressed interest in the program, and staff anticipates receiving applications in the coming months. To support this, staff will be conducting a workshop to review the program guidelines and outline eligible activities.

Additionally, staff plans to apply for the 2024 CDBG Notice of Funding Availability (NOFA) and held the first public hearing during the City Council meeting on August 21, 2024.

BUSINESS ENGAGEMENT
Staff continues to engage with local businesses and recently hosted an Open House Mixer on September 17th at the Soledad Gateway Center, located at 502 Front Street. The Community and Economic Development team used this event as an opportunity to update the public on the latest developments and projects happening in Soledad.

ART MURAL PROJECT – CESAR CHAVEZ PARK
In collaboration with the Arts Council for Monterey County, staff has reviewed the final drafts of the proposed murals for three structures at Cesar Chavez Park. The installation is scheduled to begin in the second week of October. Staff is excited about these upcoming murals and the positive impact they will bring to the community.

SOLEDAD CONTAINER VILLAGE PROJECT
On September 5, 2024, the City of Soledad was awarded a $50,000 grant from the USDA Rural Development Program, a key initiative of the U.S. Department of Agriculture focused on promoting economic growth in rural communities.

This funding, combined with city resources, will provide a total of $100,000 to conduct a feasibility study and develop an economic impact report for the Soledad Container AGENDA ITEM NO. 8.
76 Village Project. The study will evaluate the project’s economic potential, community benefits, and help identify the best business models, revenue opportunities, and costeffective financing options. Additionally, it will offer technical assistance on the project's ownership structure and management.

HOUSING DIVISION UPDATES:

ENCAMPMENT RESOLUTION FUND (ERF):

The County of Monterey has received the Standard Agreement from the State. The City of Soledad has started the recruitment for an FTE Homeless Outreach Coordinator. The City of Soledad is working on securing the vendor for the modular units for the low-barrier navigation center.
2023-2031 HOUSING ELEMENT CERTIFICATION:

On August 7th 2024 the City Council adopted the 2023-2031 Housing Element. On August 23rd HCD certified the adoption of the 2023-2031 Housing Element.

ALMOND ACRES SUBDIVISION PROJECT:

The Housing Division is working with CHISPA to finalize the Affordable Housing Agreement and Marketing Plan for the senior housing that will be built in collaboration with Nino Homes. City staff directed CHISPA to also create a Marketing Plan that will allow Soledad residents to have an advantage at applying for their units.

SUSD WORKFORCE HOUSING PROJECT:

On August 12th , the Affordable Housing Ad-Hoc Subcommittee reviewed the Affordable Housing Agreement and recommended moving it for City Council for approval. City staff is preparing to take the Affordable Housing Agreement to the City Council in October.

City staff is also supporting the District Assessment process.

PRO-HOUSING APPLICATION
The public comment period for the Pro-Housing application has concluded. The City is looking into receiving enhancement point to make the City more competitive when applying for funding from the Prohousing Initiative Program (PIP). 2024 CDBG NOFA
CED has been working to prepare to respond to the 2024 CDBG NOFA. One of the programs we intend to fund is the Homebuyer Program.

LAS VIVIENDAS AFFORDABLE UNITS
Las Viviendas has sold about 75% of the total project units. In the month of September, the city approved the purchase of 6 affordable units.

PLANNING DIVISION UPDATES:

SOLEDAD 2045 GENERAL PLAN UPDATE:

The city has hired Place Works Inc. to assist in creating and updating the 2045 General Plan for Soledad. Currently, the staff is working on the Land Use Alternatives. City staff will host an interactive community outreach event for the Alternatives to gather more input and ideas on the community's focus and needs. Please join us on Thursday, October 3rd, in the large multipurpose room at the Community Center from 5:30 pm to 7:30 pm. 77 For more information about the General Plan on the website Seimpre Soledad - www.soledadgeneralplan2045.com , or you can get the material at City Hall.

SOLEDAD MARKETPLACE
Tractor Supply is working to resubmit corrections for the second plan check review.

DaVita is currently under construction and waiting on PG&E. An application for a Car Wash has officially been submitted for CUP – SPR- ARC review. The staff is currently reviewing the application for completeness.

PANDA EXPRESS
Currently under Construction and just finished a partial sheetrock inspections.

HOLIDAY INN
The project applicant has submitted the Site Plan and Architectural Design plan for city staff to review. The application was incomplete, and comments/ deficiencies were sent back to the applicant for additional information and submission. The city has not received any communication since August.

SUHSD WORKFORCE HOUSING PROJECT
Staff is continuing to work with SUSD to proceed with the construction process. The applicant has submitted Building Plans to the City for an At-risk Plan Review. Comments were sent back to the applicant. The Applicant knows that all Plan Checks are At-Risk Plan Checks from now until ownership. City staff is waiting for the Applicants to purchase the property to review and work on the Lot Merger application.

MIRAMONTE (Former Miravale III)
Staff continues to work on the Certification of Completion with LAFCO. City Manager Megan Hunter has been the lead in LAFCO meetings to address the ag conservation easement efforts. Staff will continue to fulfill LAFCO requirements. Staff has also been working with the developer on the Development Agreement with the direction of the City Manager. The Development Agreement is anticipated to be presented to City Council by the end of this year or early 2025.

BUILDING DEPARTMENT UPDATE:

Please see the attached building permit log
78 Permit List
33 Records
Permit # Issued Any Parcel Number Site Address Type Project Description Valuation Totals 230330 09/03/2024 022381052000 31 Cambrian Court
(UNIT A)

ACCESSORY DWELLING
UNIT
Conversion of storage unit to an ADU 749.58
SQ FT
$76,008.52
240360 09/05/2024 022311007000 699 MALAGA CT

RESIDENTIAL BUILDING
STUCCO STUCCO ENTIRE EXTERIOR OF HOME $8,000.00
240339 09/06/2024 22282041000 427 TIBURON PL RESIDENTIAL WALL HEATER COMPLETE REPLACEMENT OF WALL HEATER $1,250.00
240361 09/06/2024 22521049000 649 CAMBRIA DR SOLAR / PV SYSTEM SOLAR/PV SYSTEM/10 MODULES, 3.8 KW $14,505.00 240362 09/06/2024 022361017000 1001 Highpoint
Court
SOLAR / PV SYSTEM SOLAR/PV SYSTEM/8 MODULES, 3.16 KW,
STORAGE BATTERY (1) $13,004.00
240254 09/09/2024 022152011000 354 MAJOR AVE RESIDENTIAL FURNACE HVAC installation $12,500.00 240322 09/09/2024 022026016000-3 537 Front Street COMMERCIAL PLUMBING Backflow Preventer Install $3,000.00 240364 09/09/2024 22261036000 6 WALKER CT SOLAR / PV SYSTEM SOLAR/PV SYSTEM/24 MODULES, 9.6 KW, 1

BATTERY
$10,900.00
240365 09/09/2024 022025012000 178 Soledad Street

SOLAR PV WITH

ELECTRICAL PANEL

UPGRADE
ROOF MOUNT SOLAR 13 MODULES 5.265 KW/
1 BATTERY STORAGE SYSTEM $21,035.00
240366 09/09/2024 22361075000 334 ENTRADA DR RESIDENTIAL DEMO DEMO BACKYARD PORCH 297 SQ. FT. 240367 09/09/2024 22083013000 1068 PALM AVE SOLAR / PV SYSTEM SOLAR/PV SYSTEM/11 MODULES, 4.345 KW / 1 BATTERY
$15,255.00
240368 09/09/2024 022151003000 1255 WALKER DR SOLAR / PV SYSTEM ROOF MOUNT SOLAR 16 MODULES 6.08 KW/ 1 BATTERY STORAGE SYSTEM $19,008.00
240353 09/10/2024 022291023 600 NESTLES
ROAD

COMMERCIAL FIRE
SYSTEMS New NFPA 13 Fire Sprinkler System $40,000.00
9/24/24, 1:28 PM office.smartgovcommunity.com/Permits/PermitList/Print https://office.smartgovcommunity.com/Permits/PermitList/Print 1/3 79 Permit # Issued Any Parcel Number Site Address Type Project Description Valuation Totals 240356 09/11/2024 22026009000 501 FRONT ST COMMERCIAL PLUMBING INSTALLATION OF A BACKFLOW DEVICE $4,100.00 TUP24015 09/13/2024 257091005000 101 Front StreetTEMPORARY USE OF LAND PERMIT

TAQUITOS HERNANDEZ AND CATERING - SEPT
28 12PM -5PM LIVE MUSIC INSIDE
240109 09/16/2024 022142005000 1041 PALM AVE
(UNIT A)

ACCESSORY DWELLING
UNIT
NEW DETACHED ADU 741 SQ. FT. $122,761.47
240373 09/16/2024 022034009000-2 1025 State Street NEW COMMERCIAL SIGN 3 new signs for my business. - BENEFIT FITNESS, INC. $800.00
240378 09/16/2024 022311016000 748 Malaga Court SOLAR / PV SYSTEM ROOF MOUNT SOLAR 17 MODULES 6.885 KW $20,815.00 240303 09/17/2024 22461013000 421 SOBERANES

ST (UNIT A)

ACCESSORY DWELLING
UNIT
NEW DETACHED ADU 637 SQ. FT. $107,329.11
240343 09/17/2024 22516011000 646 MOLERA AVE SOLAR / PV SYSTEM Pv Roof Mount Solar Installation(5.925kw)(15 panels) 1 storage battery
$18,257.00
240377 09/17/2024 22512066000 1084 SAN GABRIEL SOLAR / PV SYSTEM SOLAR/PV SYSTEM/11 MODULES, 4.345 KW $15,255.00 240380 09/17/2024 22471033000 215 LEDESMA ST SOLAR / PV SYSTEM SOLAR/PV SYSTEM/11 MODULES, 4.455 KW/1 BATTERY STORAGE $15,464.00
240379 09/18/2024 022073015000 1500 Palm Ave RESIDENTIAL DEMO DEMO 750 SQ. FT. SFD BEHIND THE MAIN

DWELLING
240383 09/18/2024 22515031000 629 VENTURA DR SOLAR / PV SYSTEM ROOF MOUNT SOLAR 8 MODULES 3.24 KW $13,156.00 240387 09/19/2024 22037007000 1005 STATE ST COMMERCIAL PLUMBING INSTALLATION OF A BACKFLOW DEVICE $1,800.00 240354 09/20/2024 022191057000 1565 VINEYARD DR ACCESSORY DWELLING UNIT
Detached ADU 749 SQ FT - PREAPPROVE
PLANS $149,265.82
240369 09/20/2024 022024006000-3 753 Front Street

COMMERCIAL FIRE

SYSTEMS

INSTALLATION OF CELL COMMUNICATOR FOR
NEW PATH OF COMMUNICATION $1,568.00
240388 09/20/2024 22012019000 279 ENCINAL ST RESIDENTIAL RE-ROOF REMOVE EXISTING, REPLACE WITH SHINGLES $6,000.00 9/24/24, 1:28 PM office.smartgovcommunity.com/Permits/PermitList/Print https://office.smartgovcommunity.com/Permits/PermitList/Print 2/3 80 Permit # Issued Any Parcel Number Site Address Type Project Description Valuation Totals 240308 09/23/2024 22192037000 1672 MUNRAS ST SOLAR / PV SYSTEM ROOF MOUNT SOLAR 17 MODULES, 6.800 KW, 1 ESS W/NEW 125A PANEL $12,716.00
240381 09/24/2024 022141020000 865 METZ RD RESIDENTIAL ADDITION OR REMODEL Repair/rebuild fire damaged residence $80,000.00 240391 09/24/2024 022271059000 604 Regina Street SOLAR / PV SYSTEM ROOF MOUNT SOLAR 12 MODULES 4.86 KW/1 ESS $16,234.00
240392 09/24/2024 022335024000 1088 MADRID ST SOLAR / PV SYSTEM SOLAR/PV SYSTEM/14 MODULES, 5.53 KW $17,507.00 240393 09/24/2024 022411040000 412 Indian
Paintbrush SOLAR / PV SYSTEM ROOF MOUNT SOLAR 10 MODULES 4.05 KWS/1 BATTERY STORAGE SYSTEM $14,695.00 9/24/24, 1:28 PM office.smartgovcommunity.com/Permits/PermitList/Print https://office.smartgovcommunity.com/Permits/PermitList/Print 3/3 81 SUBJECT: Fire Department Activity Report
TO: Honorable Mayor Velazquez and City Council
FROM: Jason Luckenbach, Fire Department Chief

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
Fire Department
Attached are the Fire Department Activity Reports and Call Volume for September.

AGENDA ITEM NO. 9.
82 City of Soledad Fire Department
525 Monterey Street, Soledad, CA 93960

STAFF REPORT
September 24th, 2024

To: Mayor and City Council
From: Jason Luckenbach, Battalion Chief
Subject: Activity Report – September 2024
BUSINESS INSPECTIONS / PRE-PLANS:
 (16) Business Inspections have been completed
 (7) Re-Inspections completed
 (2) Fire Department Pre-Plans completed
HYDRANT TESTING:
 (33) Hydrants Tested in the month of September.

SUSPECTED OPIOID INCIDENTS:
***No suspected Opioid Incidents ran by the Fire Department in September 83 Station 37 - Call Volume
24 120
21 5
4 174
21 107
12 5
2 147
0 20 40 60 80 100 120 140 160 180 200
Fires
Medicals
Traffic Accidents
Hazardous Conditions
Public Service Assists
Total Calls (Last 30 days)
Fires Medicals Traffic Accidents Hazardous
Conditions
Public Service
Assists
Total Calls
(Last 30 days)
Current 21 107 12 5 2 147
2023 24 120 21 5 4 174
AUGUST 24TH - SEPTEMBER 24TH
Current 2023
84 SUBJECT: Police Department Activity Report
TO: Honorable Mayor Velazquez and City Council
FROM: Damon Wasson, Chief of Police

COUNCIL COMMUNICATION
THROUGH: Megan Hunter, City Manager

MEETING
DATE: October 2, 2024
AGENDA ITEM NO. 10.
85 SOI.EDAD POI-ICE DT}ARTMENT
Monthly Crime Date s11d Qalls for Senice 2024
Activity Jan. Fcb. March April M"y June J"ly Sept" C)ct- Nov Dec. Yearly 'I-ota.ls
Murde r/Atte mptcd Murdcr 0 0 0 0 0 0 0
Sexual Assault 0 I I 0 0 2
Armcd Robbery 0 0 0 I 0 0
Strong Arm Robbcry 0 0 0 0 I 0 0 0
Aggravatcd Assault I 4 2 (i 0 ll 2
l)omcstic Violcnce 5 2 2 4 2 9 7
Arson 0 0 0 0 0 0
llurglary 0 0 0 2 2 0 I I
Ianccny 0 0 0 0 0 0 0 0
Auto'l'hc[t 2 2 I 4 4 2
'fralfic CitationsAVarnings Issucd ll5 ll3 ll0 (;l 82 l6l 79 'l'otal Arrcsts l9 25 l9 24 46 2tt
Dogs Impoundcd 0 4 0 tt 2 22 t2
Cats & Othcr Impounds 5 I 0 2 7 4 9 5
ACO Corrlact-s 0 0 0 0 70 29
Animals transportcd to SPCA I 4 0 2 ll 5
Codc Enforcemcnt Contacts 172 t78 l4:') 1.34 2t0 ll8 164 32 8 Parking Enforccment Citationsffy'arnings 0 0 0 58 64
Vchiclc Abatemcnt Contacls 0 0 0 0 0 8l
Commcrcial F,nforccment Contacts 0 0 0 0 8
Community Policing 185 0 124 191 745
Victirn Advocatc Contacts 21 l3 8tt 70 7u
'l'olal Calls lor Scni<'c t,479 1,299 1,07 5 I,057 t372 1557 t37 5 1360 1185 TOTAL MONTHLY Agf TIT]Y 2,018 1,638 1,945 2,172 3,448 2,296 2,362

IITI IIII IIII IIII IIII

III III III III III III III III III III III III III III III I
I
I
I
I
I
I
I
I
I
I
I
I
I

IIII ITII
II
0 Aug.
0 0
I
u 6
0 0 0
0 0
2 2
27 0
0 47
144
u.3
I U.1
0 4
0 7
0 1.532 | t,563
lo lo lo
lo
lt -l- 106
617
I o-fo-T-o I
o 148 018
1703 I ,r58
-J--
70 186
olo
Bl3
86 SOI,EI)AD POLICE DEPARTM }]NT
SIAIT'I}{G LEVEIS
Authorized Swom (21) Non-Sryom (6)
Month Administration Sergeants Patrol FTO/Cadet Non-Sworn Sworn Vacancies
Total Authorized
Stalt
August 2 5 6 7 4
Septembcr 2 5 6 2 7 5
October
Novcmber
December
January
February
March
April
May
June
I
27 27
87 OB /21 /2024 Eo
o9 /23 /2024 2024
Soledad Police lrcpartEcnt

GOMMUNITY POLIGING REPORT
Citizen Contacts: Officers have
this reporting period.
made approxinately 500 outreach contaqts during
Bu€iness Checks: Officers conducted 119 business outreach contacts.

Apartment/Residential cont.cts: Officers made 21 contacts rith resi-dents on well-being checks.

Schools: Officers conducted 21 ralk-throughs and driv6-bys 61 tines as par! of achool zone enforcement throughout Traffic Enforcement Unit. Special attention contiaues around the school rith the Traffic Unit.

City
made
Parka: Continuoug patrol and 18 walk-throughs, rilh park visito. contacts Officers had a high presence at Vosti Park rrith Sunday goccer games.

Youth Outreach: Nulrerous children {€re
who provided stickors and goodie bags.
contacted by officers advocate cso' s
Farmer's Market: Attended on 08/29, 09/05, 09/12 and 09,/19 conducting outreaqh Special Events: The department held our joint Conmunity BBQ ri-th the Soledad Lions CIub on August 31"twith over 300 conmunity medbers aetending the event.

Eacebook: 2618 Lj.kcs, {93 ComcnCs, 237 Sharas, 14,188 times photos viered, 100,861 P6ople Reached. tfc currently have 11,028 Follorersr and this nut[beE increaaes &onthly and is attributed to the hard rork of lhe department'6 various units/ as rel,L as our outreach in person and on social Eedia.

Churches: On-going visj.ts of al1 churches throughout the city Volunteer/Reserve/Explorer tni-ts/Misc: Reserve officers donated 92 hours, volunteer Unit donated 8 hours in this reporting period, Prepaled by: Deputy Chief Fred J. Lombardi
PolitB t
88 Victim Assistance Advocate activity report- C. Zamudio August 26u', 2024 - September 23,a,2O24
Referral Services: 10
On-scene crisis response: 2
Community Outreach: 12
Meetings:4
Follow ups:5
Social Media/ Website: 18
Victim Advocate Training: 2
Schools visited: 3
Other Details:21
TOTAL:78
/,or ir \
89 Soledad Police Departrnent
Deparfrnent Activity Report
IE tIE Nltlt t!E
Public
0 0 0l
0 m FA
Td:I|l M'ItIT
Abandoned Vehicles
EE' t@ IE EE!
CSO: Escarsega
7Z-Hov
0 0 rd
72-Hour Tagr Privat
0 0
0 0
0 0
8 Vehicles Towid
0 0
0 0
0 0
0J I
AV Co[bcts OI 0
0 0
0 rd
o 0l
4 0
Commercial Eaforcemeut
Euforcement Co[tacts
o
0 6l
0 Animal Crcutrol
0 0
0 Liceoscs Issued
Cats Iu Custody
0 0
0 0
0 0
0 4
In Custody
0 0
0 0
0 0
0 9
5 Otl.rcr AniEals Iu Custody
0 0
0 0
0 0
0 0
Bites
0 0
0 0
0 0
0 SPCA Transport
0 0
0 0
0 00
5 0
Deceased Aaimals
0 0
0 0
0 0
0 2
0 Citations
0 0
0 0
0 0 I 0 Warning Citations 0 0 0 0 0 0 0 0 0
Ucensc AppLications
0 0
0 0
0 0
0 0
0 CoDtacts regardinS Brccding
0 0
0 0
0 0
0 0
0w
0 0
Crcmplaints r0 r0
00J
C,onnol CoDhctJ
Municipal Code Violationi
0l t0 0 0
0 artrlDgs
0 0
0 0
0 0
6 I
Citatious
0 0
0 0
0 0
0 l9
0 0t
o
0 9n
m
0 00
0 E
M Code C,oDtact,3
oo
0 Code Enforcement 0 0 o
arErngs
0 0
0 0
0 0
0 20
Citatious
0 0
0 0
0 0
0 1t
0 Reports Talen
0 0
0 0
0 0
0 I
Codc ContacLs
0 o
o 9r7
a
Crcmmunity
o []
0o I n
0 00
0 Ert]
m
Other Calls for Scrvice
co-,nulit Policing 0 0 0 0 0l 0
C,alls for
0 0
0 E@rt?rriEIEEilI@TEil@@ @nrIirr E I I I
g]Eisa
r

ET EE EET IT
EETE' IT EEII rrEEE E EEEE E III
ET EEIl
E

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EITI
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r I I r IIr r IrE EE rI Ilrrrr EEEE Et@i-a IT
EE Ilr EI
rIII ETE' EEEE @g
ETE II
r
rrE EEE E@@ III
EE EEITE 0 0 0 0 0
13 1t
90 Soledad Police Deparonent
Deparonent Activity Report
CSO: Cclaya Jaa. Feb. March April May Junc July Aug. Sepu Oct Nov. Dcc.

Abandoned Vehidcs
72-Hour Ta3: Public
0 00
000
6 6
7}Hour Tag: hivatc
0 0
0 002
0 Vchidq Tovrcd
0 00
000
02 1
ToaI AV Coutacts
000
00 00 l0
Commcrcial Enforccmcnt
Commcrcial Enforccmcnt Conacts
0 00
000
0 8
Animal Control
Dog licuscs Issucd
000
00 0
0 Carr In C\utody
00 00
00 00
Dogs In C\Btody
00 0
0 004
3 Other Aninalr In Gxtody
0 00
0 00
000
A.nimal Bites
0 0
00 00
SBCA Transpon
0 00
000
0 I 0
Dccra.scd Animals
00 0
00 0
Citationr
000
00 0
00 Waming Citationg
00 0
00 00
0 f,p6.rin8 ficcnre Applications
0 0
0 00
000
Conactr rcgardiry Breeding
000
000
00 0
Total Animal Control Contacts
0 00
00 0
3 Violations
Complaints
00 0
00 00
0 Waming!
0 n
0 0
00 000
Citations
00 0
00 00 l5
Toal Muuicipal Code Conacts
0 00
0 0
00 Code
Complains
0 00
0 2
WamiDSs
0 00
00 U
n
20 Ciations
0 00
000
0 ll0
Rcports Talcn
000
000
032
Total Codc Eoforccment CoDhctE
0 000 27
4 Community Poli.i"g
Community Conacts/Evcnt
0 0
0 I
Callr for Servicc
Othcr Calls for S€rvice
000
00 00 2l l3
III III rII III
III
III III III rII III III III III III III III rII
III IITIII rII

III III III III III
III
III
0 0
0 10
0 0
0 0
0 0
0 0
0 0
0 0
0 08
0 l3 0 22
0 0 | 0 | ll 0 0
010
0l0l0l0
91 Soledad Police Departrnent
Departrnent Report
CSO; Ruiz Jaa, Fcb. March April May Jrme July Aus. SepL Oct Dcc.

Abandoned Vchidcs
72-Hour Tag: Public
000
000 l0 32
TZHour Ta8: hitratc
000
00 00 I
Vehidca Towed
000
00 04
Totrl AV Contacts
00 0
n
0 21 t1 31
Commercial Enforccmcnt
C-ommcrcial Enforccment Contact!
000
000
0 0
0 Animal Conrol
Dog Liccnscr Issucd
00 000
400
Cats In Custody000
00 015
3 Dogs In Custody
000
00 91
Othcr Animals In C\rtody00
0 00000
0 Animal Bitcs0
00 0032
SPCA Transpon
00 000
55 Deceascd Animals
000
0 0
2 20
Ciations000
000 I 2
Warning Citations
000
00 003 I
Breeding lictnrc Applications000
0 00000
Contactr regarding BrcedinS000
000
0 Total Animal Conrol Conacts
000 28 28 l9
Municipal Codc Violations
Complaints000
00 20
W'arninSt
000
00 0600
Ciations000
000 l3
00 ToeI Municipd Codc C,ontacts
00 Code Enforrement
Complaine00000
0000
.Wanings
000
000002
Ciations000
000000
Report Taksn0
0000000
0 Toal Codc Faforrcment Crntacb
0000000
Commmity Policins
C-ommrmity Conacts/Xventr000
00 Calls for Service
Other Gllc for Servicc
0 50

III III III III
III
III III III III III III III rII III IITIII III

III III III III

III III ITI III III
III
Nov.
l8
1 0
09 0
0 5
0 00
0 0
0 olololol0l0lls
0 I I
010
olo l o
olo l o lo o leo 75
92 SUBJECT: City Hall Holiday Office Closure from Christmas Eve through New Year's Day
TO: Honorable Mayor Velazquez and City Council
FROM: Francine Uy, Human Resources Manager
MEETING DATE: October 2, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 11.

Recommendation
It is recommended that the City Council of the City of Soledad approve by minute motion the City Hall holiday office closure from Christmas Eve through New Year's Day.

Executive Summary
Historically, the City Council has approved the closure of City Hall offices during the week of Christmas. This year, Staff recommends December 24, 2024, through January 1, 2025.

Background
The City of Soledad generally has minimal staff in the office between Christmas and New Year’s Day.

Many other agencies are also closed or operate with minimal staff during the holiday period noted above.

Review & Analysis
Staff shared the proposed holiday office closure with the Service Employees International Union (SEIU), and SEIU had no objection. The holiday office closure will include SEIU members except for members assigned to the Utility Division of the Public Works Department and the Police Department, which will remain in operation to ensure the health and safety of residents. The Parks and Recreation Department will also remain in operation to continue to provide services and programs to our residents of Soledad.

By approving the closure, staff would need to use up to four (4) days (December 26, 27, 30, and 31) of accrued vacation, comp time, admin leave, or floating holiday, depending on their work schedule. This action will result in City Hall offices being closed starting December 24 (in observance of Christmas Eve) through January 1 (in observance of New Year's Day). City Hall will resume normal business hours on January 2, 2025.
93 Financial Considerations
The City will benefit from the closure, as it will reduce accrued time off, which reduces the city's financial liability.

Alternatives
Do not approve the City Hall holiday office closure
Modify the City Hall holiday office closure
Approve the City Hall holiday office closure
Planning/CEQA
The City of Soledad has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA Guidelines Section 15378) and requires no further analysis.

Public Notice Requirements
None is required for a minute motion.
94 SUBJECT: Resolution No. 6162, a Resolution of the City Council of the City of Soledad Approving an Increase to the Budget Limit to $4,000 for the Sidewalk Repair/Replacement Cost Share Program
TO: Honorable Mayor Anna Velazquez and City Council
FROM: Alex Ramos, Assistant Engineer
MEETING DATE: October 2, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 12.

Recommendation
It is recommended that the City Council of the City of Soledad Consider and Adopt Resolution No. 6162, “A Resolution of the City Council of the City of Soledad Approving an Increase to the Budget Limit to $4,000 for the Sidewalk Repair/Replacement Cost Share Program”.

Executive Summary
The Sidewalk Repair/Replacement Cost Share Program has had a steady utilization in Soledad Resident participation over the past three years since the implementation of this program in 2021. Postpandemic costs have significantly impacted construction and material costs over the last couple of years, as witnessed in prior construction projects brought forth to the City Council. Due to the cost increase, the Cost Share Program has not been updated to reflect today’s average construction cost to replace sidewalks. Therefore, Staff is recommending City Council approve an update to the Cost Share Program to increase the Budget Limit to $4,000 per application or a 50% cap, whichever is less.

Background
The City of Soledad has an estimated 68 miles of privately owned sidewalks. Every year, the City receives complaints about sidewalks in disrepair, causing tripping hazards and safety concerns. These complaints are typically submitted, and the City is asked to remedy the issue in a timely manner. The City Council and Staff recognized the importance of encouraging a pedestrian-friendly environment for health, safety, and general quality of life for the City’s residents, so the Cost Share Program and Sidewalk Repair & Maintenance Ordinance were brought forth for discussion.

On February 17, 2021, under Reso 5682, City Council Established a Sidewalk Repair/Replacement Cost Share Program and introduced Ordinance 736 for adding new Chapter 12.02 Maintenance and Repair of Sidewalks to Title 12 – Street, Sidewalks, and Public Places of the Soledad Municipal Code.

The Cost Share Program, as it stands, offers to budget $40,000 each year from Measure X to fund up to 95 50% or $2,000, whichever is the lesser of the two, for an eligible sidewalk repair or replacement project. Each applicant must submit an application for their intent to participate in the program, as the program operates on a first-come, first-serve basis with a waiting list if the annual $40,000 budget is depleted. Staff determines whether a sidewalk project is eligible for repair/replacement utilizing the following criteria, but not limited to:

With a ½” or more trip hazard
That are buckling due to tree root growth
That is settling, with the sidewalk dipping 2" or more
That are tipped, tilted, or sloped more than 1" per foot To further encourage Soledad residents to participate in the Cost Share Program, the Encroachment Permit Fees are waived, but an encroachment permit must still be applied for to perform any work within the City Right of Way.

Review & Analysis
There has been only a handful of applications submitted this year and one sidewalk project completed thus far. In speaking with residents inquiring about the program, the underlying issue many residents face is the current budget limit of $2,000 or 50%, whichever is lesser of the two, does not reflect the current cost of both construction and materials. A typical sidewalk repair project consists of repairing 2 – 3 panels (10.7 Cubic Yards) due to buckling from tree roots. The average cost to repair two concrete panels now ranges from $3,700 - $3,900, as it may involve the need to grind/cut large intrusive roots to replace the sidewalk from how bad the conditions have become. An additional panel may add an extra cost of up to $4,500. Therefore, Staff in an attempt to continue incentivizing residents and to account for the inflation of construction and materials costs, recommends that the City Council approve an amendment to the Cost Share Program to increase the budget limit to $4,000 for the sidewalk repair/replacement cost share program. In addition, tree removal and replacement and associated costs may be necessary to keep the same tree from damaging the same sidewalk section again.

Financial Considerations
Under Measure X Capital Projects, the City of Soledad allocates $40,000 annually to operate the Cost Share Program. The budget limit increase shall be funded through this allocation. This is solely a policy change to enable the City to offer additional funding in the Cost Share Program for eligible Sidewalk Repair/Replacement projects.

Alternatives
Approve the resolution as presented; or
Do not approve the Resolution; this is not recommended as many sidewalks around the City have been identified as needing repairs as they pose tripping hazards to Soledad residents.

Planning/CEQA
Pursuant to Section 21065 of the CEQA guidelines, a "project" is defined as a "whole action" subject to a public agency's discretionary funding or approval that has the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. The proposed consideration is updating an existing program to enable Staff to pay up to $4,000 instead of the $2,000 for the Cost Share Program. This update will not cause a direct physical change to the environment and will not cause a reasonable foreseeable indirect physical change into the 96 Resolution No. 6162
Exhibit A
environment. If the event the City needs to repair/replace a sidewalk, those projects performed by Public Works are subjected to CEQA and is Categorically Exempt Pursuant to Section 15301 Class 1 of the California Environmental Quality Act, which states the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.

Public Notice Requirements
None required.

Attachment(s):
97 RESOLUTION NO. 6162

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD APPROVING AN INCREASE TO THE BUDGET LIMIT TO $4,000 FOR THE

SIDEWALK REPAIR/REPLACEMENT COST SHARE PROGRAM
WHEREAS, the City of Soledad has an estimated 68 miles of privately owned sidewalks; and
WHEREAS, the City has received complaints about sidewalks in disrepair, causing tripping hazards and safety concerns throughout the City, and requests for the City to remedy the issues in a timely manner; and
WHEREAS, on February 17, 2021, under Resolution 5682, the City Council established a Sidewalk Repair/Replacement Cost Share Program and introduced Ordinance 736 adding new Chapter 12.02 Maintenance and Repairs of Sidewalks to Title 12 – Street, Sidewalks, and Public Places of the Soledad Municipal Code; and
WHEREAS, the existing Cost Share Program offers an annual budget of $40,000 through Measure X to provide a 50/50 cost share or $2,000, whichever is lesser of the two, on a firstcome, first-served basis on eligible repair/replacement projects; and WHEREAS, to account for the inflation of construction and material costs, Staff is recommending City Council approve an amendment to the Cost Share Program to increase the budget limit to $4,000 for the sidewalk repair/replacement cost share ; and WHEREAS, pursuant to Section 21065 of the CEQA guidelines, a "project" is defined as a "whole action" subject to a public agency's discretionary funding or approval that has the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. The proposed consideration is updating an existing program to enable Staff to pay up to $4,000 for the Cost Share Program. This update will not cause a direct physical change to the environment and will not cause a reasonable foreseeable indirect physical change into the environment; and WHEREAS, the increase shall be funded through the budgeted $40,000 from the Measure X Capital Project Fund: 210-7160-5632
NOW THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Soledad that the Sidewalk Repair/Replacement Cost Share Program, a copy of which is attached hereto as Exhibit A and incorporated herein by this reference, is hereby amended to increase the budget limit for the City subsidy for repair work from $2,000 to $4,000. 98 PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 2nd day of October 2024 by the following vote:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
99 Sidewalk Repair/Replacement Cost Share Program
To encourage a pedestrian-friendly environment for the health, safety, and general quality of life of its residents, the City of Soledad has a cost share program to assist City property owners in repairing or replacing old and/or damaged sidewalks as well as new connecting sidewalks.

Sidewalk Repair/Replacement Program Cost Share Description/Eligibility/Requirements:
● The City will budget $40,000 every year to fund up to 50% or $4,000 whichever is less of an eligible sidewalk repair or replacement project.
● Only public sidewalks in the city right-of-way qualify; service walks which run to the house or curb from the city sidewalk are excluded from the program. ● Applications for funding will be approved on a priority basis: cost share applications may be placed on a waiting list for future funds.
● Single-family through three-plex multi-family housing properties are eligible. The program is not available to multi-family properties greater than a three-plex or commercial properties.
● Only sidewalk slab(s) that have been determined hazardous and requiring repair/replacement are eligible. Eligible sidewalks include those:
o With a ½" or more trip hazard.
o That are buckling due to tree root growth.
o That are settling, with the sidewalk dipping 2" or more. o That are tipped, tilted or sloped more than 1" per foot. o That are spalled, missing surface, have more than three cracks per 4' x 4' square and show signs of distress.
o Work must be performed by a licensed Class A – General Engineering Contractor to be eligible for the cost share program.
● All applicants must submit a completed encroachment permit for their intent to participate in the program.
*On occasion, sidewalks may be deemed so hazardous (condemned) that immediate remediation is necessary, and the work is ordered to be completed at the property owner’s expense. 100
SUBJECT: Public Hearing for Resolution No 6164, A Resolution of the City Council of the City of Soledad Approving the Revised Homebuyer Assistance Program and Economic Development Business Assistant Loan Program Guidelines
TO: Honorable Mayor Velazquez and City Council
FROM: Kao Nou Yang, Community and Economic Development Director, Beatriz Trujillo, Management Analyst - Housing & Tencia Vargas, Economic Development Coordinator
MEETING DATE: October 2, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is Recommended that the City Council of the City of Soledad Hold a Public Hearing to Gather Community Input on the City’s Homebuyer Assistance Program and Economic Development Business Assistance Loan Program Guidelines and Approve Resolution No. 6164.

Executive Summary
The City of Soledad is poised to secure financial support from the California Department of Housing and Community Development (HCD) for two key initiatives: the Economic Development Business Loan Program and the Homebuyer Assistance Program. To comply with the readiness requirements for this application, guidelines for both programs need to be adopted. These guidelines will detail the program structure, eligibility criteria, funding limits, loan requirements, terms, and the approval process.

Background
City staff have developed comprehensive guidelines for both programs. The Homebuyer Assistance Program adheres to federal and state regulations, specifically those associated with the Community Development Block Grant (CDBG), HOME Investment Partnership Program, and Cal Home Program, all administered by HCD. The Economic Development guidelines comply with CDBG regulations, which is the primary funding source for this initiative. 101
Review & Analysis
Homebuyer Assistance Program:

Applicant Qualification:

Household income must be at or below 80% of the area median.

Completion of Individual Homebuyer Counseling is mandatory.

Ability to qualify for a primary mortgage and documentation of funds for a 1% down payment.

Housing Unit Eligibility:

Homes must be owner-occupied or vacant for a minimum of three months prior to purchase.

Units must comply with local codes and health standards and can be single-family homes, condominiums, or manufactured homes on a permanent foundation Funding Parameters:

Maximum home values are dictated by the funding source:

HOME: $618,000
CalHome: based on area median purchase price
CDBG: no set maximum
Assistance limits vary by source, with CDBG not imposing a specific cap, while HOME and CalHome have defined ceilings based on unit specifications.

Loan Terms:

All loans have a minimum term of 45 years (or 30 years for CalHome).

Interest rates are set at 0%, with deferred payments until loan maturity.

Voluntary payments can be made without penalty.

Business Assistance Loan Program:

The Business Assistance Loan Program offers affordable, non-conventional financing loans to eligible for-profit businesses and development projects within the City of Soledad. In exchange for funding, businesses must demonstrate public benefit, typically through the creation of new jobs, prioritizing low- to moderate-income individuals for these positions.

Applicant Qualifications:

Eligible applicants include:

Existing businesses that are locally licensed and legally operating.

Start-up businesses that will secure all necessary licenses and permits.

Individuals wishing to purchase an existing business.

Business leasing tenant space or owner-occupied businesses in the service area.

Ineligible Applicants:

Businesses with an existing CDBG Business Assistance loan that remains unresolved with HCD.

Private “exclusive” recreational facilities.

Non-profit businesses.

Entities or individuals with unresolved state or federal tax lines.

Businesses or individuals in bankruptcy proceedings.
102
Loan Amount:

Loan amounts will be determined based on:

Capital needs for the proposed project and public benefit compliance.

Gaps in project financing or the ability to support new debt.

Available collateral.

Loan Terms:

Loan terms are structured as follows:

Operating Capital Loans: Typically have a term of five years.

Equipment and Supply Loans: Terms can extend up to ten years.

Real Property Improvements: Loans secured by real property can extend up to 20 or 30 years, depending on the scope of work.

Interest Rates:

Interest rates start at 3% but may increase based on profit margins or return on investment projections.

Additional factors influencing rates include:

Amount of equity contributed by the business.

Business’s ability to service the loan.

Expected rate of return for the borrower.

Credit risk and management experience.

Underwriting Standards:

Underwriting for the program includes the following criteria:

Documentation of project costs as reasonable, typically through third-party cost estimates.

Final commitments from all sources of funding for the project.

CDBG funds cannot replace private (non-federal) financing.

Financial feasibility documentation, including cash flow projections to support jobs and debt
service.

Return on the owner’s equity must be reasonable, reflecting the level of equity and CDBG loan terms.

CDBG funds will be disbursed on a pro-rata basis alongside other financing sources.

Both the Homebuyer and Business Assistance Loan programs will be implemented in ways consistent with federal lending laws.

Financial Considerations
Securing the CDBG grant for both homebuyer and business assistance programs will not significantly impact the City’s funds. The grant includes provisions for both program administration and implementation, with no matching funds required
Alternatives
Accept staff recommendations on approving the adoption of both the Homebuyer and Business Assistance Loan Program guidelines.

Decline the adoption of both guidelines pending further community or staff revisions. 103
Resolution No. 6164
Public Hearing Notice
City of Soledad Homebuyer Program Guidelines 2024-DRAFT Soledad Business Assistance Loan Program 2024 - Draft
Planning/CEQA
Pursuant to Section 21065 of the CEQA guidelines, a "project" is defined as a "whole action" subject to a public agency's discretionary funding or approval that has the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. The proposed consideration is establishing guidelines that will be used to apply for the upcoming 2024 CDBG NOFA. This action will not cause a direct physical change to the environment.

Any development project resulting from the application and approval of both Homebuyer Assistance and Business Assistance Guidelines may be subject to subsequent CEQA review and analysis.

Public Notice Requirements
A public notice was published in the Salinas Valley Tribune on September 18, 2024 (see Attachment B) and was posted outside of the Soledad City Hall Offices.

Attachment(s):
104
RESOLUTION NO. 6164

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD

ADOPTING THE HOMEBUYER ASSISTANCE PROGRAM AND ECONOMIC

DEVELOPMENT BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES WHEREAS, the City Council of the City of Soledad on October 2, 2024, conducted a duly noticed public hearing to gather community input on the City of Soledad’s Homebuyer Assistance Program and Business Assistance Loan Program Guidelines; and WHEREAS, the City Council has determined that the Homebuyer Assistance Guidelines meet the regulatory requirements for programs funded under, the CDBG, HOME, and CalHome Programs and the and Business Assistance Loan Guideline meets the regulatory requirements under the CDBG Program; and
NOW, THEREFORE BE IT HEREBY RESOLVED, by the City Council of the City of Soledad as follows:

SECTION 1. The City Council has reviewed and hereby approves program guidelines for the Business Assistance Program to be funded by the State Community Development Block Grant (CDBG Program) Fund, and the Homebuyer Assistance Program funded by the CDBG Program, HOME Investment Partnership Program (HOME) and Cal Home Program.

SECTION 2. The City Council has determined that federal Citizen Participation requirements were met during the development of the guidelines.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 2nd day of October 2024 by the following vote:

AYES, and in favor thereof Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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CITY OF SOLEDAD

PUBLIC NOTICE
Notice of Public Hearing for the Review of Homebuyer Assistance Program and Business Assistance Loan Program Guidelines.

NOTICE IS HEREBY GIVEN that the City of Soledad will conduct a public hearing meeting on October 2, 2024, at 6:00 pm, at the Soledad City Council Chambers located at 248 Main Street, Soledad, CA 93960 to discuss updates to the City’s Homebuyer Assistance Program Guidelines and the Business Assistance Loan Program Guidelines.

The purpose of this public hearing is to review and discuss the proposed guidelines for the City of Soledad Homebuyer Assistance Program and Business Assistance Loan Program. These programs aim to support residents in purchasing homes and provide funding to help local businesses grow, creating economic opportunities within the city.

The guidelines are available at Soledad City Hall located at 248 Main Street, Soledad, CA 93960 between the hours of 8:00 AM to 5:00 PM on Monday –Friday or by emailing the Community and Economic Development Department at [email protected].

The public is encouraged to attend and provide input or comments regarding the proposed program guidelines.

If you are unable to attend the public hearing, you may direct written comments to the City of Soledad, 248 Main Street, Soledad, CA 93960, or you may contact the Community and Economic Department at (831) 223- 5178 no later than 5:00 pm on October 2, 2024. In addition, a public information file is available for review at the above address between the hours of 8:00 a.m. and 5:00 p.m. Monday – Friday.

The City of Soledad does not discriminate on the basis of race, color, national origin, sex, sexual orientation, gender identify, age, religion or disability. If you require special accommodations to participate in the public hearing, please contact Deputy City Clerk, Darlene Noriega, City of Soledad, 248 Main Street, Soledad, CA 93960, or you may telephone (831) 223-5014 at least 24 hours prior to the scheduled public hearing.

Publish in: Salinas Valley Tribube
Publish Date: September 18, 2024
106

CIUDAD DE SOLEDAD
AVISO PÚBLICO
Aviso de Audiencia Pública para la Revisión de las Pautas del Programa de Asistencia para Compradores de Vivienda y del Programa de Préstamos de Asistencia para Negocios.

POR LA PRESENTE SE NOTIFICA que la Ciudad de Soledad llevará a cabo una reunión de audiencia pública el 2 de octubre de 2024, a las 6:00 pm, en la Cámaras del Concejo Municipal de Soledad ubicada en 248 Main Street, Soledad, CA 93960 para discutir las actualizaciones de las Reglas Generales del Programa de Asistencia para Compradores de Vivienda de la Ciudad y las Reglas Generales del Programa de Préstamos de Asistencia Comercial.

El propósito de esta audiencia pública es revisar y discutir las reglas generales propuestas para el Programa de Asistencia para Compradores de Vivienda y el Programa de Préstamos de Asistencia Comercial de la Ciudad de Soledad. Estos programas tienen como objetivo apoyar a los residentes en la compra de viviendas y proporcionar fondos para ayudar a las empresas locales a crecer, creando oportunidades económicas dentro de la ciudad.

Las pautas están disponibles en el Ayuntamiento de Soledad ubicado en 248 Main Street, Soledad, CA 93960 entre las 8:00 a.m. y las 5:00 p.m. de lunes a viernes o enviando un correo electrónico al Departamento de Desarrollo Económico y Comunitario al [email protected].

Se anima al público a asistir y proporcionar comentarios o sugerencias con respecto a las reglas generales propuestas para los programas.

Si no puede asistir a la audiencia pública, puede dirigir sus comentarios por escrito a la Ciudad de Soledad, 248 Main Street, Soledad, CA 93960, o puede comunicarse con el Departamento Comunitario y Desarrollo Económico al (831) 223-5178 a más tardar a las 5:00 pm del 2 de octubre de 2024. Además, un archivo de información pública está disponible para su revisión en la dirección anterior entre las 8:00 a.m. y las 5:00 p.m. de lunes a viernes.

La Ciudad de Soledad no discrimina por motivos de raza, color, origen nacional, sexo, orientación sexual, identidad de género, edad, religión o discapacidad. Si necesita adaptaciones especiales para participar en la audiencia pública, comuníquese con la Secretaria Municipal Adjunta, Darlene Noriega, Ciudad de Soledad, 248 Main Street, Soledad, CA 93960, o puede llamar al (831) 223-5014 al menos 24 horas antes de la audiencia pública programada.

Publicar en: Salinas Valley Tribune
Publish Date: September 18, 2024
107
City of Soledad
Homebuyer
Program Guidelines
For:

HOME Investment Partnerships Program
Community Development Block Grant
(CDBG) Program
CalHome Program
Serving the City of Soledad
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (date)
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HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0 PURCHASE PRICE LIMITS

5.0 THE PRIMARY LOAN
A. QUALIFYING RATIOS
B. INTEREST RATE
C. LOAN TERM
D. IMPOUND ACCOUNT

6.0 THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
B. NON-RECURRING CLOSING COSTS
C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
D. RATES AND TERMS FOR PROGRAM LOANS
E. LOAN-TO-VALUE RATIO

7.0 PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY

7.2. RECEIVING LOAN REPAYMENTS

7.3. DUE UPON SALE OR TRANSFER

7.4. LOAN SERVICING POLICIES AND PROCEDURES

7.5. LOAN MONITORING PROCEDURES

8.0 PROGRAM LOAN PROCESSING AND APPROVAL

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

8.3. ESCROW PROCEDURES

9.0 SUBORDINATE FINANCING

10.0 EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. DEFINITION OF EXCEPTION

10.2. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

11.0 DISPUTE RESOLUTION AND APPEALS PROCEDURE
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TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME PER UNIT SUBSIDY LIMITS PER UNIT; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENTF: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S LENGTH,

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENTH: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST 110
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CITY OF SOLEDAD

HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL
The above–named entity, hereinafter referred to as the “Sponsor,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded homebuyer programs. The homebuyer program described herein (the “Program”) is designed to provide assistance to eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of deferred payment “silent” second priority loans as “Gap” financing toward the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers as their primary residence. The Program will be administered by the City of Soledad Housing Division (the “Program Operator”).

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps, have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer classes to help educate homebuyers about the home buying process and future responsibilities. Persons who have participated in local homebuyer seminars will be notified about the Program.

B. The Program Operator will work with local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be encouraged to have their customers participate in the Program.

C. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an 111
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otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The Program Sponsor will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. .

B. Once the applicant is ready to purchase a home, their Program eligibility is confirmed through submittal of a full Program application and they are invited to a briefing regarding participation in the Program. At the briefing the application is reviewed and the potential homebuyer is given a “Preliminary Eligibility Letter” for the Program along with the following forms: Program Brochure, Attachment (G) Instructions to Home Buyer, List of Participating Lenders, Attachment (E) Sellers Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home) and (F) Notice to Seller.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Each applicant must participate in individual Homebuyer Course provided by the Program Operator and receive a certificate of completion.

D. The potential homebuyer is given 180 days in order to find a qualified home and begin securing a primary loan for the housing unit. If during the 180-day time frame, the potential homebuyer is unable to purchase a home, an extension may be given. However, if it appears the potential homebuyer cannot participate in the Program, the reservation of funds expires.
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DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 150
Credit Card Payment 50
Total Other Debt $ 200
A $865 per month loan payment equates to borrowing $143,000 at 5.88% for a 30 year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 865 $1,180 Housing
Insurance 82 +200 Other Debt Service
Taxes 233 $1,380 Total Debt Service
Total Housing Expense $1,180 (Overall debt service per month is 41% of $3,388) (PITI is 35% of $3,388)
Purchase Price of Property $ 280,000
Less Primary loan amount 143,000
Less down payment of 1% 2,800
Equals “GAP” $ 134,200
Plus estimated allowable settlement charges 8,400
Equals Total Subsidy $ 142,600
B. The housing unit selection process will be conducted by the homebuyers. Prior to making an offer to purchase an eligible housing unit (see Section 3.0), homebuyer shall provide seller with a disclosure containing the following provisions:
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1) Homebuyer has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement; 2) Homebuyer’s offer is an estimate of the fair market value of the housing unit, to be finally determined by a state-licensed appraiser; 3) The housing unit will be subject to inspection by the Program Operator and the City’s Building Official. The housing unit must comply with local codes at the time of construction and local health and safety standards; 4) All housing units built prior to January 1, 1978, will require a lead paint disclosure to be signed by both the homebuyer and Seller (Attachment E); 5) Since the purchase would be voluntary, the seller would not be eligible for relocation payments or other relocation assistance;
6) The seller understands that the housing unit must be either: currently owneroccupied, newly constructed, or vacant for three months prior to submission of the purchase offer;
7) If the seller is not provided with a statement of the above six provisions prior to the purchase offer, the seller may withdraw from the agreement after this information is provided.

C. Applicant submits executed standard form purchase and sale agreement and primary lender prequalification letter to Program Operator. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Program Operator verifies applicant eligibility, housing unit and loan eligibility and amount of assistance to be provided consistent with these guidelines.

D. Program Operator, where Program Operator is not the Sponsor, submits recommendation to the Sponsor for approval or denial, including the reasons for the recommendation. Sponsor determines Applicant’s approval or denial, and instructs Program Operator to notify Applicant. Program Operator provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures.

E. When Primary Lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

F. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.
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1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the Primary Lender and the Sponsor. The Program’s down payment requirement (below) is in place even if the Primary Lender has a lower down payment requirement. If the Primary Lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of one percent (1%) of the purchase price, but may contribute more if desired.

C. Sponsor will not provide a subsidy that is greater than the amount of the primary mortgage The subsidy will write down the cost of the primary lender’s loan so that the payments of PITI are within approximately 25 to 35% of the gross household income. The Program Operator will determine the level of subsidy and affordability during underwriting of the Program’s loan to make sure that it conforms to the requirements of the HCD funding Program.

1.5. HOMEBUYER EDUCATION
Buying a home can be one of the most confusing and complicated transactions anyone can make. Providing the future homebuyer with informative homebuyer education training, can bring success to the Sponsor, Program Operator, the Program and most importantly, the homebuyer. It has been documented that first-time homebuyers that have had homebuyer education have the ability to handle problems that occur with homeownership.

All Program participants are required to attend a Sponsor-approved homebuyer education class. The homebuyer education class will cover such topics as the following: preparing for homeownership; available financing; credit analysis; loan closing; homeownership responsibilities; home maintenance; impact of refinancing and loan servicing. Methods of homebuyer counseling and education may include, but are not limited to: one-on-one counseling between homebuyer, counselor and family/individual and/or group workshops and informational sessions. Tools of instruction may include fliers, brochures, power point presentations, worksheets, etc.

A list of such counseling entities can be accessed here: Home (site.com)

1.6. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance and for Cal Home funded programs, the applicable Conflict of interest requirements of Public Contract Code sections 10410,10411, and 10430 (e) shall be followed. Section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making 115
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process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to non-discrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State funds on the basis of his or her religion or religious affiliation, age, race, color, creed, gender, sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD. (See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children count in family size determination.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period. 116
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2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria, as shown in the most recent HCD program-specific guidance at http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide.shtml, will be followed to independently determine and certify the household’s annual gross income. The Program Operator should compare this annual gross income to the income the Primary Lender used when qualifying the household.

The Primary Lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program.

Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

See Attachment A: 24 CFR Part 5 Annual Income Inclusions and Exclusions B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets, however, is recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
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For CDBG, an eligible homebuyer means an individual or individuals or an individual and his or her spouse who meets the income eligibility requirements and is/are not currently on title to real property. Persons may be on title of a manufactured home unit, who are planning to sell the unit as part of buying a home located on real property. Documentation of homebuyer status will be required for all homebuyers. CDBG-funded programs may assist eligible homebuyers who are not “first-time” homebuyers.

HOME and CalHome-funded Programs are required to use the following definition of an eligible homebuyer, which is a “first-time homebuyer” from 8201(l) Title 25 California Code of Regulations:
“First-time homebuyer” means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition:

1. a displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family;

2. a single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or

3. an individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is:
a. not permanently affixed to a permanent foundation in accordance with local or state regulations; or
b. not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “Within the City of Soledad.” 118
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B. Housing unit types eligible for the homebuyer Program are new or previously owned single-family residences; condominiums; or manufactured homes in mobilehome parks, in common-interest developments or on a single-family lot and placed on a permanent foundation system. HOME does not allow manufactured homes unless on a permanent foundation system.

C. All housing units must be in compliance with State and local codes and ordinances.

D. Housing units located within a 100-year flood zone will be required to provide proof of flood insurance with an endorsement naming the City as loss payee in order to close escrow.

E. Housing units must meet the home value limits of the funding source (HOME, CDBG or CalHome) as described in Section 4.0 Purchase Price Limits.

Exceptions for these reasons must be approved by the Loan Committee and must be documented for monitoring purposes.

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit, and prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.
2) The Program Operator, a certified housing inspector, or a Sponsor representative will walk through the housing unit, determine if it is structurally sound, and identify any code related and health and safety deficiencies that need to be corrected. A list of code related repair items will be given to the homebuyers and their Realtor to be negotiated with 119
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the seller. Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection. 3) Upon completion of all work required by the Program Operator, Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance is in compliance with local codes and health and safety requirements at the time of purchase and prior to occupancy.

B. Per Section 8208 of the State HOME regulations, no additional HOME assistance, including rehabilitation funds, may be provided during the period starting one year following the filing of the Project Completion Report through the end of the Affordability Period.

The HOME Affordability Period is as follows (amount does not include Activity Delivery Costs paid to the State Recipient by HCD):

Amount of HOME Assistance Period of Affordability in Years Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
C. Lead-Based Paint Hazards: All housing units built prior to 1978 for which HOME or CDBG funding is anticipated are subject to the requirements of this section

3.2.C. Such homes must undergo a visual assessment by Program Operator following the requirements described by the HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHS certified LBP Risk Assessor/Inspector. HOME and CDBG general administrative and activity delivery funds may be used to pay for lead- based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a pre-1978 home, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home” (EPA 747- K-94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
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2) Disclosure: Prior to the homebuyer’s obligation to purchase a pre-1978 housing unit, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces in order to identify deteriorated paint. All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR 35.1340. 4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately trained workers. Prior to the contractor starting mitigation work the Program Operator shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job in order to assure that only qualified contractors and workers are allowed to perform the mitigation.

D. The Program Operator will: 1) confirm that the housing unit is within the eligible area, 2) will review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
Eligible homes will be those that are currently owner-occupied or have been vacant for three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant-occupied homes are included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws
A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies, as amended by the URA Amendments of 1987, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including CDBG and HOME) is provided. Requirements governing real property acquisition are described in Chapter VIII. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps in regard to tenants of housing to be acquired, rehabbed or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under HOME or CDBG, to certify that it is following a 121
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residential anti-displacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a HOME or CDBG assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 570(a).

3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. Any and all property disclosures must be reviewed and signed by the homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0 PURCHASE PRICE LIMITS
For HOME, the purchase price limits for this Program shall not exceed the HOME Homeownership Value Limit for Sponsor’s County as updated by HCD.

For CDBG , the purchase price limit for this Program shall not exceed the Maximum Sales Price specified by the County of Monteret Affordability Tables.

Note: For CalHome-funded loans, the home purchase price is limited as follows: The purchase price cannot exceed 100% of the area median purchase price as established by comparable sales or information provided by the California Real Estate Association.

Current Sales & Price Statistics (car.org)
Attachment C: HOME HOMEOWNERSHIP VALUE LIMITS *Sponsor will update these limits annually as HCD provides new information.

5.0 THE PRIMARY LOAN
Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of financing for the maximum amount the Primary Lender is willing to loan (the “primary loan”), which is limited by the maximum debt-to-income ratio identified herein.

A. QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 35% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any.

The back-end (total) debt-to-income ratio shall be between 28% and 42% and is the 122
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percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like car or personal loans and credit card debt, as well as child support and alimony payments.

Note: Qualifying ratio guidelines can be somewhat flexible depending on the loan-tovalue ratios. The higher the LTV, the more conservative the ratios should be. A qualifying ratio higher than the guidelines may be acceptable if there are compensating factors. Some examples of compensating factors are: 1) the prospective homebuyer has successfully demonstrated that over a minimum 12-month period the ability to pay housing costs equal to or greater than the proposed monthly housing costs for the home to be purchased; 2) the prospective homebuyer is a limited user of credit and they show a history of being able to save money; 3) there will be no more than a 5% increase in the prospective homebuyer’s housing expense. These exceptions will be approved by the Sponsor’s loan committee and documented for the file.

B. INTEREST RATE
As required by the HOME NOFA, the primary loan must have a fixed interest rate that does not exceed, by greater than one percent, the FNMA 90-day rate found at: Fannie Mae Weekly Yield | Fannie Mae
The applicable FNMA rate should be from the date the primary mortgage rate was locked or else the date of the HOME loan approval. No temporary interest rate buy-downs are permitted.

C. LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

D. IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.
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6.0 THE PROGRAM LOAN
A. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
For HOME, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed the maximum HOME subsidy limit for Sponsor’s County per bedroom per the HCD website at http://www.hcd.ca.gov/grants-funding/income- limits/state-andfederal-income-limits.shtml and shall never exceed the amount of the primary mortgage without prior HCD programmatic approval. See Attachment C of these Program Guidelines for current limits. Any approved “grant” amount for lead-based paint evaluation and reduction activities or for relocation assistance shall be included in this amount, as shall Activity Delivery Costs.

For CalHome, the amount of Program assistance to a homebuyer toward purchase of a home shall not exceed 40% of the purchase price not to exceed $100,000. CDBG has no limit.

B. NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

C. AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a buyer’s Program subsidy shall be computed according to the housing ratio parameters specified in Section 5.0.A.. Each borrower shall receive only the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Program Operator will use the “front-end ratio” of housingexpense-to-income to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

D. RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of deferred payment (interest and principal) loan (DPL).

For HOME and CDBG, the Program loan’s term shall be for as long as the primary loan, plus 15 years. For CalHome, the Program loan’s term shall be for 30 years. The interest rate shall be 0% simple interest.

Note – If it is determined by the Sponsor that repayment of a CalHome Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

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is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time, or;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are subordinated after a rate and term refinance is approved, per Attachment D.

E. COMBINED LOAN-TO-VALUE RATIO
For Cal Home, the loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price, plus a maximum of up to 5 percent of the sales price, to cover actual, nonrecurring closing costs.

For HOME and CDBG, the loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

7.0 PROGRAM LOAN REPAYMENT

7.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty.

7.2. RECEIVING LOAN PAYMENTS
A. Program loan payments will be made to:

City of Soledad
Community & Economic Development Department
Attn: Housing Division 248 Main Street
Soledad, CA 93960
B. The Sponsor will be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by HCD programs. The Program lender will accept loan payments from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

7.3. DUE UPON SALE OR TRANSFER
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In the event that an owner sells, transfers title, or discontinues residence in the purchased property for any reason, the principal balance of the DPL is due and payable, except:

A. For CalHome, loans are not assumable. The following transfers of interest shall not require the repayment of the CalHome Program loan:
1) transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
2) a transfer, in which the transferee is a person who occupies or will occupy the property, which is:
a. a transfer where the spouse becomes an owner of the property; b. transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or
c. a transfer into an inter vivos trust in which the borrower is and remains the beneficiary and occupant of the property
B. For HOME and CDBG, if the owner of the property dies, and the heir to the property meets income requirements, the First-Time Homebuyer definition, and intends to occupy the home as a principal residence, the heir may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir qualifies for under the current participation guidelines. If the property owner dies and the heir does not meet eligibility requirements, the loan is due and payable.

C. If an owner wants to convert the property to a rental unit, or any commercial or non-residential use, the loan is due and payable.

D. The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

7.4. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

7.5. LOAN MONITORING PROCEDURES
Sponsor will monitor Borrowers and their housing units annually to ensure adherence to Program requirements including, but not limited to, the following:
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A. Owner-occupancy
B. Property tax payment
C. Hazard insurance coverage
D. Good standing on Primary loans
E. General upkeep of housing units

8.0 PROGRAM LOAN PROCESSING AND APPROVAL
A. Loan Processing
All homebuyers or their representatives will be sent out an eligibility packet with all the necessary forms, disclosures, information, and application. They should submit a complete application packet with all the Sponsor’s Program loan documents executed as well as all the information from the Primary Lender. The Primary Lender should submit: 1) accepted property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.

B. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender.

C. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Program Operator will request any additional documents needed. Documents may be emailed or faxed, but originals shall be received through the mail before Program funds are committed to escrow. Based on receipt and review of the final documents, the Program Operator will do an income certification (using most recent HCD program’s guidance on income calculation and determination), and homebuyer certification (review of credit report and income taxes). Documentation of affordability will then be verified and subsidy requirement determined.

D. Disclosure of Program and Loan Information to Homebuyers The Program’s application and disclosure forms will contain a summary of the loan qualifications of the borrower with and without Program assistance. Housing ratios with and without Program assistance are also outlined in these guidelines. 127
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Information on the Program’s application will be documented with third party verifications in the file. For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite and title report will provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application will provide current debt and housing information and will be documented by the credit report and income/asset verifications. The Primary Lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the Primary Lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and crosschecking all the Primary Lender information, the final Program loan amount approved will fall within the affordability parameters of the Program.

8.1. COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed the Program Operator will submit it to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set and Program funds are accessed for the homebuyer.

8.2. PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for copy of Notice of Default are also recorded with the County Clerk/Recorder.

8.3. ESCROW PROCEDURES
The escrow/title company shall review the escrow instruction provided by the Program lender and shall issue a California Land Title Association (CLTA) and the American Land Title Association (ALTA) after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA is issued to each lender providing additional coverage for the physical aspects of the property as well as the homebuyer’s title failure. These aspects include anything which can be determined by only physical inspection, such as correct survey lines; encroachments; mechanics liens; mining claims and water rights. The Program lender instructs the escrow/title company in the escrow instructions as to what may show on the policy; the amount of insurance on the policy (all liens should be covered) and the loss payee (each lender should be listed as a loss payee and receive an original ALTA).

9.0 SUBORDINATE FINANCING
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term must be for at least as long as the term of the Program loan.

10.0 EXCEPTIONS AND SPECIAL CIRCUMSTANCES

10.1. The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and approved by the Sponsor’s HOME Program Representative or Program Manager. If internally required, the Sponsor’s Loan Committee and/or governing body would then need to approve said changes.

10.2. DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

10.3. PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its agent may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination of the exception based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for a decision.

11.0 DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor.

The Sponsor will then schedule a meeting with the Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the Sponsor’s governing body. Final appeal must be filed in writing with HCD within one year after denial.
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ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income.

An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments.
(i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and 130
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(B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income. 24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
(5) Income of a live-in aide, as defined in §5.403;
(6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution;
(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS);
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(iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
(16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014- 11688/federally-mandated-exclusions-fromincome-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.
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ATTACHMENT A-1
Title 25 Section 6914 Gross Income Inclusions – For CalHome activities “Gross income” shall mean the anticipated income of a person or family for the twelve-month period following the date of determination of income.
“Income” shall consist of the following:
(a) Except as provided in subdivision (b), “Exclusions”, all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family. Income shall include, but not be limited to:
(1) The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses;
(2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business); (3) Interest and dividends;
(4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay;
(6) Public Assistance. If the public assistance payment includes any amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of:
(A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus
(B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities,
(7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse (but see subdivision (b)(5)).

Where a family has net family assets in excess of $5,000, income shall include the actual amount of income, if any, derived from all of the net family assets or 10 percent of the value of all such assets, whichever is greater. For purposes of this section, net family assets means value of equity in real property other than the household's full-time residence, savings, stocks, bonds, and other forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded. (b) The following items shall not be considered as income:
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(1) Casual, sporadic or irregular gifts;
(2) Amounts which are specifically for or in reimbursement of the cost of medical expenses; (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses;
(4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for subsistence are to be included in income; (5) The special pay to a serviceman head of a family away from home and exposed to hostile fire; (6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments;
(8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation in the following volunteer programs under the ACTION Agency:
(A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs.
(B) National Older American Volunteer Programs for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE).

Cal. Code Regs. tit. 25 § 6914
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ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the 24 CFR Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for HOME Program (Third Edition; January 2005).

Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.
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ATTACHMENT C

HOME HOMEOWNERSHIP VALUE LIMIT FOR MONTEREY COUNTY
(HOME Value Limits as of 7/1/2023)

EXISTING

CONSTRUCTION
NEW
CONSTRUCTION (less
than 12 months old)
$618,000 $618,000
For CDBG the maximum purchase price cannot exceed 120% of HOME Value Limits.

For CalHome the purchase price is limited as follows: The purchase price cannot exceed 100% of the area median purchase price as established by comparable sales or information provided by the California Real Estate Association which can be found at the following link https://www.car.org/en/marketdata/data/countysalesactivity

CALHOME MAXIMUM SUBSIDY LIMIT
Maximum assistance is identified in the most current NOFA. The Current CalHome Program loan maximum for Homebuyer Assistance is 40% of the purchase price not to exceed $100,000

HOME SUBSIDY LIMITS PER UNIT FOR MONTEREY COUNTY
(Limits are effective 2/13/2024)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,292 $359,263
INCOME LIMITS FOR MONTEREY COUNTY*
(Limits became effective 5/1/2024)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$33,950 $38,800 $43,650 $48,500 $52,400 $56,300 $60,150 $64,050 HCD 2024 INCOME LIMITS FOR CALHOME

ADJUSTED FOR FAMILY SIZE FOR MONTEREY COUNTY
INCOME 1 2 3 4 5 6 7 8
80% $74,150 $84,800 $95,400 $105,950 $114,450 $122,950 $131,400 $139,900 *Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCD-maintained Value, Subsidy, and Income limits is:
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml (for HOME and CDBG limits, choose “State CDBG, HOME and NHTF - Income, Value and Rent Limits”; for CalHome income limits, choose “Official State Income Limits”)

SPONSOR STANDARDS FOR BEDROOMS AND BATHROOMS TO PREVENT 136
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A

OVERCROWDING
Maximum No. of
Persons in the
Household
Number of Bedrooms Number of Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4

SEE ADDITIONAL OCCUPANCY FACTORS ON FOLLOWING PAGE
• Children may share a bedroom, up to 2 children per bedroom. • Children shall be permitted a separate bedroom from their parents. • Adults not in a partner relationship may have their own bedroom. • 4 or more people – a second bathroom is allowable.
• 8 or more people – a third bathroom is allowable.
• Same rules apply to mobile home units.

The chart above is used as a guide to overcrowding.
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ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR CITY OF SOLEDAD
The City of Soledad, hereafter called “Lender,” has adopted these policies and procedures in order to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds.

The Lender will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Lender will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes (or Lender will use ____________________________________ loan collection Company to collect payments). Late fees will be charged for payments received after the assigned monthly due date, if the Borrower has a history of delinquency in payments of greater than two months.

For Notes which are deferred payment loans, the Lender must accept voluntary payments on the loan.

Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee. Except for HOME-funded loans, if borrower fails to maintain the necessary insurance, the Lender may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

When a property is located in a 100-year flood plain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City of Soledad as lender loss payee will be required at close of escrow.

The lender will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes, then the lender may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME). 138
City of Soledad Homebuyer Program Guidelines Page 32
To prevent these issues, the Lender requires the Borrower to have impound accounts set up with their first mortgagee, wherein they pay their property taxes and homeowner’s insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the lender of initiation of a foreclosure action. The Lender will then have time to contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, loan terms may have income and housing cost evaluations, which require a household to document that they are not able to make amortized loan payments, typically every five years. These loan terms are incorporated in the original Note and Deed of Trust. On HOME-funded loans, annual occupancy verification will occur between January 1 and 15 of each year for the term of the loan.

Occupancy will be verified, reviewed and certified by the submission of the following:

A. Proof of occupancy in the form of a copy of a current utility bill; and B. Statement of unit's continued use as primary residence of the owner.

C. Declaration that other title holders do not reside on the premises; D. Verification that Property Taxes are current; and
E. Verification of current required insurance policies

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Lender in writing of any change. Lender and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low-income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases, the Borrower might move and turn the property into a rental unit without notifying the Lender. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, subject to the approval of the Lender’s Loan Committee (depends on the HCD program). Note – CalHome loans are not assumable. 139
City of Soledad Homebuyer Program Guidelines Page 33
If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. For CDBG only, if the heir intends to act as an ownerinvestor (not permitted under HOME), the balance of the loan may be converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Lender’s Loan Committee. Note – CalHome loans are not assumable.

Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable.

For CalHome, the following transfers of interest shall not require the repayment of the CalHome Program loan:

A. transfer to a surviving joint tenant by devise, descent, or operation of law on the death of a joint tenant;
B. a transfer, in which the transferee is a person who occupies or will occupy the property, which is:
1) a transfer where the spouse becomes an owner of the property; 2) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or
3) a transfer into an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Sponsor and/ or Lender. The Sponsor and/or Lender will subordinate their loan only when there is no “cash out” as part of the refinance. No cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrances on the property above traditional refinance transaction costs. The refinance should lower the existing housing cost of the household. The total indebtedness on the property should not exceed the current market value except when the borrower is obtaining a HARP II or other similar federally approved refinance loan. If the HARP II or other similar financing is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request. 140
City of Soledad Homebuyer Program Guidelines Page 34
Also, the loan must:

1. be fully amortized and have a fixed interest rate that does not exceed the current market rate, as established by an index identified in the most recent NOFA;

2. not have a temporary interest rate buy-down;

3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note should be modified to coincide with the maturity date of the new first mortgage; and,

4. not have a balloon payment due before the maturity date of the Program loan.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor and/or Lender.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; 4) default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default situation. If the default situation continues then the Lender may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Lender can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be eliminated due to insufficient sales proceeds.
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8. Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure.

Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty (30) days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income-eligible uses.

9. Process Demands and Payoffs:

Requests for demands and payoffs will be processed within the timeframe allowed by law. Sponsor or its designated Loan Servicing Agent is proficient in performing the related calculations. Reconveyance and lien releases would be prepared for processing by a qualified Title Company. 142
City of Soledad Homebuyer Program Guidelines Page 36

ATTACHMENT E

SELLERS LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).

Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check (i) or (ii) below):
(i) Seller has provided the purchaser with all available records and reports pertaining to Leadbased paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial)
(c) Purchaser has received copies of all information listed above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check (i) or (ii) below):
(i) received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) waived the opportunity to conduct a risk assessment or inspection for the presence of Lead-based paint and/or lead-based paint hazards (NOT PERMISSIBLE FOR HOME AND CDBG).

Agent’s Acknowledgment (initial)
(f) Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
—————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
—————————— —————————— ————————— —————————
Agent Date Agent Date
143
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ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer DECLARATION This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $ for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, , thru the agency, will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e. eminent domain) and the agency/Sponsor will not use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $ and was estimated by , to be finally determined by a professional
appraiser prior to close of escrow.

Since the purchase would be a voluntary, arms length, transaction you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract and return it to us at:
. If you have any questions about this
matter, please contact at .

Sincerely,
Title
Buyer Date
Buyer Date
Form continues on next page with Seller’s Acknowledgment 144
City of Soledad Homebuyer Program Guidelines Page 38
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that the will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that under the City’s program, the property must be currently owneroccupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:

Vacant at least 3 months; Owner-occupied; New; or Being Purchased by Occupant I/we hereby certify that I have read and understand this “Declaration” and a copy of said Notice was given to me prior to the offer to purchase. If received after presentation of the purchase offer, I/We choose to withdraw or not to withdraw, from the Purchase Agreement.

Seller Date
Seller Date
145
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ATTACHMENT G

CITY OF SOLEDAD

INSTRUCTIONS TO HOMEBUYER
A. Participant works with lender of choice to obtain the primary lender’s pre-qualification letter.

B. . Program disclosures are reviewed with agent for presentation to seller. The HOME Program allows only homes vacant for three months or more prior to the date of the purchase offer, unless the current tenant is purchasing the home or the seller has been the only occupant during those three months.

C. Participant selects home and enters into a purchase contract (contingent upon receiving Program loan approval). Lender provides the Program Operator with a copy of:
- real estate sales contract
- residential loan application and credit report
- verified income documentation
- disclosure statement
- proof of personal funds for participation in program
- breakdown of closing costs
- structural pest control clearance
- appraisal with photos and preliminary title report
D. Program Operator reviews paperwork to determine program eligibility and financing affordability for participant.

E. Program Operator staff meets with qualified applicant to provide information relative to the program requirements, the lending process, and homeownership responsibilities.

F. Program Operator has home inspected to document health & safety and code compliance.

Notice of any deficiencies or needed corrections are given to participant's real estate agent, with recommended course of action. Only new construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

G. Program Operator requests loan approval from Sponsor’s Loan Review Committee.

Following loan approval, Program Operator prepares Deed of Trust, Promissory Note, Request for Notice of Default, Grant Agreement, Owner-Occupant Agreement with City and Escrow Instructions, and requests check and deposits same into escrow.

H. Escrow company furnishes Program Operator with proof of documents to be recorded, and any escrow closeout information. After receipt of recorded loan documents, Final escrow Settlement Statement, Insurance Loss Payee Certification and Final Title Insurance Policy (Program Operator) closes out the loan file.
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ATTACHMENT H

LEAD-BASED PAINT

VISUAL ASSESSMENT,NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt 
Select one: Visual Assessment  Presumption  Hazard Reduction  Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present  Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6. Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

Printed Name: Signature: Date:

Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity 147
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ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose

Lead Safe Housing Rule Screening Sheet Documents
exemptions
Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized
by qualified workers
and that safe work
practices were
followed during paint
stabilization
Clearance Report and Clearance Review Worksheet Documents that unit passed clearance
Disclosure Form Documents that
buyer received
disclosure and
pamphlet.

Lead Hazard Reduction Notice Documents that
buyer received
required lead hazard
reduction notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc 148
Guidelines For
Business Assistance Loan Program
Operated By:

City of Soledad
With
Community Development Block Grant (CDBG) Funding – Economic Development Adopted by City Council October 2, 2024
149
1 TABLE OF CONTENTS

1. INTRODUCTION...............................................................................................1

2. BUSINESS ASSISTANCE LOAN PROGRAM OVERVIEW.............................1

1. Program Administrator...................................................................................1

2. Program Service Area ....................................................................................1

3. Source of Program Funds...............................................................................1

4. Eligible Loan Applicants................................................................................2

3. CDBG PROGRAM REQUIREMENTS...............................................................2

1. Eligible Activities..........................................................................................2

2. Ineligible Use of Funds..................................................................................3

3. Meeting a National Objective.........................................................................3

4. Meeting Proper Public Benefit Requirements.................................................4

5. Other Federal Requirements...........................................................................4

6. Required Loan Review by Department Staff ..................................................6

4. LOAN PROCESSING AND APPROVAL .......................................................... 6

1. Program Marketing ........................................................................................6

2. Fair Lending Compliance...............................................................................6

3. Loan Application Processing..........................................................................7

4. Program Loan Advisory Board (LAB) ...........................................................7

5. Loan Applicant Confidentiality ......................................................................8

6. Applicant Dispute Resolution/Appeals Procedure ..........................................8

7. No Conflict of Interest Allowed .....................................................................9

8. Exceptions / Special Circumstances ...............................................................9

9. Loan Closing Process.....................................................................................9

5. DESCRIPTION OF LOANS................................................................................9

1. Determination of Loan Amount......................................................................9

2. Determination of Loan Term........................................................................ 10

3. Determination of Loan Interest Rate............................................................. 10

3. LoanProcessing Fees.................................................................................... 10

6. LOAN UNDERWRITING STANDARDS ........................................................ 10

1. Initial Loan Evaluation................................................................................. 10

2. Personal and Business Credit Requirements................................................. 11

3. Personal and Business Financial Information ............................................... 11

4. Collateral Requirements............................................................................... 12

5. Business Experience and Management Capacity .......................................... 13

7. LOAN SERVICING.......................................................................................... 13

1. Loan Servicing Agent .................................................................................. 13

2. Loan Servicing Policies& Procedures........................................................... 13 150
2 8. PROGRAM OVERSITE BY LENDER............................................................. 13

1. Oversight of Program Administrator ............................................................ 13

2. Oversight of Loan Servicing Agent.............................................................. 14

EXHIBITS WITH SUPPORT DOCUMENTS
EXHIBIT A: HUD Underwriting Standards...................................... ‘A-1’ through ‘A-13’ EXHIBIT B: State Loan Review Checklist ........................................ ’B-1” through ‘B-4” EXHIBIT C: Sample Loan Approval Memo.......................................‘C-1’ through ‘C-5’ EXHIBIT D: Sample Loan Agreement .............................................’D-1’ through ‘D-30’ EXHIBIT E: Sample Employment Projection Chart................................................... ‘E-1’ EXHIBIT F: Sample Self-Certification Form for New Hires................‘F-1’ through ‘F-2’ EXHIBIT G: Sample Loan Servicing Policies.................................... ‘G-1’ through ‘G-4’ 151
4 CITY OF SOLEDAD

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

BUSINESS ASSISTANCE LOAN PROGRAM GUIDELINES

1.0 INTRODUCTION
The City of Soledad here after called “Lender” has established a Business Assistance Loan Program, here after called “the Program”. The Program is designed to use public taxpayer dollars to stimulate economic growth, create jobs and improve the living conditions of low / moderate-income residents in the City of Soledad. The Program provides affordable nonconventional financing loans to eligible for-profit businesses and development projects specifically within the City. In return, businesses are required to provide documentation of public benefit (commonly, the creation of new job), and meeting a national objective (typically filling most of the new job positions with persons qualified as low -moderate income). These Program guidelines describe policies and procedures required for award of loan funds to eligible borrowers. The guidelines have been adopted via resolution by the Lender and approved by the California Department of Housing and Community Development, here after called “Department”.

2.0 BUSINESS ASSISTANCE PROGRAM OVERVIEW

2.1 Program Administrator
The Lender has secured the services of a qualified program administrator hereafter, called “the Administrator,” who has experience in business assistance loans and is familiar with state CDBG requirements. The Administrator will be charged with processing and underwriting business assistance loans and documenting compliance with CDBG regulations, performing the work of the detailed scope of services within their contract, and these program guidelines.

The contact information for the Administrator is:

Name: Angel Johnstone
Agency:

Address:

Phone Number:

Email Address:

Below is the contact information for the Lender’s Oversight Staff, which oversees the administrator’s work.

Name: Hortencia C. Vargas, Economic Development Coordinator Agency: City of Soledad
Address: 502 Front Street, Soledad, CA 93960
Phone Number: (831) 223-5016
Email Address: [email protected]

2.2 Program Service Area
Financing under this Program is available to all eligible businesses located in the jurisdictional 152
5 limits of the Lender. These funds may not be used in jurisdictions that received CDBG funds from the federal Department of Housing and Urban Development (HUD) entitlement program.

This Program is subjected to CDBG service area requirements of sustainability benefiting residents in the service areas.

2.3 Source of Program Funds
The Program is capitalized with CDBG funds provided by HUD to the State of California Department of Housing and Community Development “Department”, which in turn provides the CDBG funds to the Lender. As such, CDBG funds are federal money administered by the Department, so both federal and state laws and regulatory requirements must be followed.

CDBG funds come to the Lender from two sources: 1) active grant contract agreement between the Department and the Lender originating from annual competitive application process; 2) CDBG program income “PI” administered under PI reuse agreement between Department and Lender.

3.0 CDBG PROGRAM REQUIREMENTS

3.1 Eligible Loan Applicants
CDBG funds under this Program can only be expended on the eligible activity authorized under Title I of the Housing and Community Development Act of 1974 (hereafter called “Act”), section 105(a)(17): special economic development, providing direct financial assistance to private for-profit businesses.

An eligible applicant is:
• an existing business legally operating, with any required local business license, insurance, or permits per local, state and federal requirements; or • a start-up business that may not have all required licenses or insurance, but will obtain all required licenses, insurance, and permits prior to closing; or • a person or persons wishing to buy an existing business; or • a business leasing tenant space or owner-occupied business in the service area.

In addition, the loan applicant must provide documentation that the proposed project will meet CDBG eligibility criteria of national objective and public benefit per Sections 3.4 and 3.5. The loan applicant must provide documentation of meeting standard commercial underwriting criteria outlined in Section 6 of these guidelines as well as HUD CDBG mandated six underwriting standards described in Section 3.6. An eligible loan applicant must document compliance with all CDBG regulations listed in Section 3.7.

Specific ineligible loan applicants include:
• a business with an existing CDBG BA loan that has not been closed out with HCD; • a business operating a private “exclusive” recreational facility; 153
6 • non-profit businesses are not eligible under this program; • a businesses or person(s) with unresolved state / federal tax liens; • a business or person in the process of filing for bankruptcy are not eligible until the bankruptcy process is complete.

3.2 Eligible Project Costs
CDBG funds are non-discretionary and restricted to certain eligible costs. These eligible costs cover most expenses associated with economic development projects. Specifically, eligible CDBG economic development costs include:
• operating capital and inventory;
• furniture fixtures and equipment (FF&E), with or without installation costs; • project site improvements, new construction or rehabilitation of leased space or owned building; (Do we need to state that this will be subject to prevailing wage) • engineering and architectural plans and required permits or fees; • purchase of manufacturing equipment (with or without installation costs); • refinancing of existing business debt when done in conjunction with restructuring of other existing private financing debt(s);
• purchase of real property, when it provides positive cash flow for new jobs; • relocation grants for persons displaced due to funding of the project; • purchase of an existing business, including documented value of good will.

These eligible costs must be connected to the business’ ability to meet an eligible CDBG national objective per section 3.4 of these guidelines. Lender will only use CDBG loan funds to reimburse borrower for actual eligible / approved project costs.

3.3 Ineligible Use of Funds
CDBG funds are non-discretionary, limited to certain eligible costs described in Section 3.2 above. There are also a number of ineligible costs. Some ineligible costs include:
• costs incurred prior to submittal of BA loan application and environmental review completion;
• costs associated with residential housing development, i.e. on mixed use projects; • costs associated with supporting “other” businesses the applicant owns; • costs on a funded project NOT meeting a national objective; 154
7 • personal expenses such as cars, home repairs, not directly associated with the business; • costs of paying off credit cards (personal or business); • costs of paying off any personal debt not directly associated with business; • providing CDBG loan as a revolving line of credit (LOC) is not eligible; • cash payments of any kind made directly to the assisted business owner(s) (wages or draws) from loan proceeds
• costs associated with a funded project when the owner(s) or business is found to be on federal debarred list
• public infrastructure in support of the business
• research and development costs for future production (speculative) Once approved, loan funds cannot be shifted from one approved type of cost to another without formal written approval of Lender. If there is a substantial change in the project scope of work or underwriting, then the loan must be re-evaluated and re-approved by Lender, per state and federal regulations, prior to loan closing or disbursement of CDBG funds. Meeting A National Objective

3.4 Meeting National Objective Standards
All eligible activities funded under this program must meet a CDBG “National Objective” as described in the Act, Section 104(b)(3) and federal regulations 24 CFR Part 570.483. Detail on documenting the meeting of national objective standard for a project is contained in Department’s guidance on BA Activity Chapter Website. Projects not documented as meeting a national objective are an ineligible activity. Below is a general description of documenting how a BA project meets the national objective of benefit to low - moderate income (LMI) persons.

The Lender will use Department specific guidance for ensuring each eligible project funded is documented as meeting a national objective.

BA projects normally meet a national objective standard when they create jobs and provide over half; at least fifty one percent (51%), of the new job positions to LMI qualified persons. BA projects proposing to provide most of newly created jobs to LMI persons must agree to allow the Lender, or their designated representative, to meet with each job applicant prior to hiring and complete a Department Self Certification of Income Form, see Attachment C. After all new hires are made, payrolls must be collected by the Lender and compared to the job applicant Income Certification forms to prove over half of all newly created job positions were provided to low-moderate income persons. This will prove the project’s job creation met the national objective of principally benefiting LMI persons and allow the Lender to close out the project with the Department and HUD. All documentation of national objective for jobs falls under Section 4.5 on confidentiality.

Some BA projects may require CDBG funding to retain jobs. In this case CDBG loan funds will assist in keeping the business from closing or to avoid terminating some staff. This type of 155
8 project must document that, at the time of application, over half of existing employee positions to be eliminated are held by LMI persons. As such, the business must agree to allow the Lender or their designated representative to interview existing employees and help them complete the Department’s Self Certification of Income Form. The business must also provide financial documentation that, if not for CDBG funding, the job positions will be lost and staff laid off.

The business must also document that with the investment of CDBG funds, the business will continue operations and jobs can be retained. If approved and funded, the business employees must have Self Certification of Income completed again, prior to Lender closing out the project.

By verifying that, at the time of loan application and after loan disbursements, over half of the retained positions were LMI, then the project will have LMI national objective met and it can be closed out with the Department and HUD. All documentation of national objective for jobs falls under Section 4.5 on confidentiality.

A few BA projects may meet the LMI national objective by documenting that the BA loan applicant provides goods or services to the local community, and the business service area is primarily within the Lender’s jurisdiction, and the service area is primarily residential, and the area is primarily occupied by low – moderate income persons. Thus the BA loan applicant must provide documentation of the business’ service area. The Lender will use zoning maps to document the service area as primarily residential and located within the Program service area.

The Lender will confirm the LMI status of the BA loan applicant’s service area from American Communities Survey data, in accordance with HUD low - moderate area (LMA) benefit standard. Lender will require business to provide documentation of the goods or services they provide and justify the need for CDBG funds as part of providing goods and services. This documentation must be provided prior to loan approval. After expenditure of CDBG loan funds and documentation that the business continues to provide goods and services, then the project can be closed out with the Department and HUD. LMA national objective standard guidance is provided on Department’s BA Activity Chapter webpage.

3.5 Meeting Public Benefit Standards
All eligible project activities funded under this program must meet a minimum CDBG “Public Benefit Standard” as described in the Act, section 104(b)(17) and federal regulations; 24 CFR Part 570.483(f)(g). Public Benefit is provided by the BA loan recipient in return for use of subsidized federal funds, and provides a funding limit or “cap”. Meeting Public Benefit Standard is very different than meeting National Objective Standard and should not be confused. Lender will use detailed guidance on meeting Public Benefit Standards provided on Department’s BA Activity Chapter webpage.

For BA projects meeting national objective via jobs provided to LMI persons, the Public Benefit standard is jobs, and the maximum CDBG loan funding available is limited to $35,000 per job.

The Lender will require BA loan applicants to provide an estimate of public benefit generated by investment of CDBG funds into the project via the Job Tracking Form, see Attachment C.

This proposed level of public benefit will be verified after investment of CDBG funding. The actual level of public benefit (loan funds per job) may be greater than or less than the level proposed at the BA application stage. All public benefit data falls under the confidentiality Section 4.5.

For BA projects meeting LMA national objective, based on benefit (goods or services), the Public Benefit Standard is goods or services to LMI persons. In this case, the maximum CDBG 156
9 funding available is limited to $35,000 per LMI person in the business service area. For this public benefit standard, Lender will document compliance at the BA loan application stage prior to loan approval or closing.

CDBG public benefit requirements of the program will be disclosed by the Lender at the start of the application process. Lender will use financial underwriting to identify the need for BA loan subsidies and determine reasonable public benefit that will be generated from the project, i.e. the number of jobs created from proposed project. Projects with small amounts of public benefit may be required to bring in other sources of funding because of CDBG funding limits imposed by this standard
All employees retained or hired as a result of CDBG financing must complete a selfcertification form.

3.6 Meeting Six Underwriting Standards
In addition to documenting that the project meets CDBG public benefit standard, the project must also be documented as meeting six HUD underwriting standards, per federal regulation 24 CFR Part 570.483(e). These underwriting standards are required to document a minimum “due diligence” of the Lender and ensure projects are financially sound enough to meet public benefit and national objective standards, i.e. create new or retain existing job positions. The six HUD underwriting standards are general, qualitative and are supported by commercial underwriting standards in Section 6 of these guidelines. See Department BA Activity Chapter webpage for detailed guidance on compliance with each of the six HUD underwriting standards.

The Six Underwriting Standards are:

1. project costs are documented as reasonable (typically, third party cost estimates);

2. all sources of funding for the project are documented with final commitments;

3. to the extent practicable, CDBG funds are not substituted for private (nonfederal) funds;

4. documentation that project is financially feasible (based on cash flow projections to support jobs and debt service, etc.);

5. to the extent practicable, the return of the owner’s equity investment is not unreasonable (based on level of equity and proposed CDBG loan terms);

6. to the extent practicable, CDBG funds are disbursed on a pro-rata basis with other financing provided for the project.

3.7 Meeting Other Federal Regulatory Requirements
Since these CDBG BA loans are from a federal funding source, there are a number of federal laws and requirements which are triggered by their use. The Lender and Administrator will require BA loan applicants to provide project information which allows them to make a determination of required project compliance. BA applicants are required to sign loan disclosures and work with Lender to ensure each project is in compliance with any of the triggered, applicable regulations listed below.
157
10 National Environmental Policy Act (NEPA): Every project funded under the Program must be reviewed under HUD NEPA regulations 24 CFR Part 58 and the Lender must sign and certify an Environmental Review Record (ERR) for each project prior to approval or disbursement of loan funds. The Lender is required to sign and certify the correct NEPA EER, per current Environmental Review Requirements Chapter of Department’s Grant Management Manual (GMM), along with any state review under California’s Environmental Quality Act (CEQA).

The ERR level of review is based on the project’s “aggregated” scope of work, which includes all proposed project funding. Any construction or equipment installation proposed will require more review work on the ERR. The ERR will be done early in application process, as soon as the project is deemed eligible and scope of work is finalized. No costs will be charged to the Borrower for this process. Applicants must sign Department certification form that no “choice limiting action” under NEPA regulations has or will take place. The form is included in Attachment C.

Prevailing Wage Compliance: If a project proposes to use CDBG funds to pay costs for any construction, then federal and state labor standards compliance must be documented. DavisBacon Act (40 USC 276a - 276a-5) and related laws are “triggered” when any CDBG funding is used to pay for any project construction costs. Lender will follow Department guidance in current Labor Standards Chapter of the GMM for prevailing wage compliance on funded projects.

Additional labor costs will be added to projects proposing to use CDBG to pay for new construction, rehabilitation, or equipment installation. The Administrator and Lender will work with loan applicants to ensure project compliance. The additional time and work required by prevailing wage regulations will be disclosed to the borrower as soon as possible. Any additional costs resulting from this regulation will be incorporated into the CDBG loan approval.

Acquisition and Relocation Laws: All BA applicants proposing to use CDBG funds for purchase of real property must comply with 49 CFR Part 24 Acquisition laws. Lender will provide required Seller Disclosure for execution as part of meeting this requirement.

All BA applicants proposing projects which trigger relocation compliance i.e. result in displacement of persons per Uniform Relocation Act (URA), must work with Lender to ensure compliance with this law. Additional costs associated with relocation compliance will be disclosed to the applicant prior to CDBG loan approval and included in project loan approval.

Required Prohibition of Job Pirating Certification: All BA applicants must sign a Certification of No Job Pirating. Job pirating is prohibited per CDBG federal regulation 24CFR 570.482 (h).

Job pirating is defined as using CDBG public funds to facilitate the moving of a business and associated jobs from one jurisdiction to another (business attraction). As such, CDBG federal funds cannot be used to attract / subsidize a business to move from one labor market area to another or keep a business from moving out of a labor market by making a retention argument.

Lender will require all applicants to sign a non- job pirating certification, Attachment C. Any questions regarding possible job pirating will be submitted to the Department for final determination.

Conflict of Interest Certification: BA loan applicants will sign a Certification of No Conflict of 158
11 Interest. In accordance with state and federal regulations, no member of the governing body and no official, employee or agent of the local government, nor any other person who exercises policy or decision-making responsibilities (including members of the loan committee and officers, employees, and agents of the loan committee, the administrative agent, contractors and similar agencies) in connection with the planning and implementation of the CDBG BA program shall directly or indirectly be eligible for this program. Lender will require all applicants to sign a non- conflict of interest certification, Attachment C. Any questions regarding possible federal conflict of interest will be submitted to the Department for final determination. Any questions about state conflict of interest laws will be referred to Lender’s legal council for final determination.

Required SAMs Unique Entity Identification (UEI) number, federal debarred verification and demographic data: All BA program applicants must obtain a DUN’s number, if they do not already have one. The UEI number is free and can be obtained on line. In addition, prior to loan approval, the Lender will document that the business being assisted and all owners and affiliated businesses are verified as NOT on the federal debarred contractors list. HUD also requires that the Department and the Lender collect certain income and demographic data from the business and any beneficiaries of CDBG funds.

Required Benefit to Citizens of the Jurisdiction: Applicant must work with Lender to document substantial benefit to residents in the Program service area is obtained. This requirement does not apply to job retention. For projects proposing to document providing goods or services, the service area of the business must be within the jurisdictional limits.

4.0 LOAN PROCESSING AND APPROVAL

4.1 Fair Lending Compliance
The Program will be implemented in ways consistent with the Lender’s commitment to fair lending laws. No person or business shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with Program funds on the basis of his or her religion or religious affiliation, age, race, color, ancestry, national origin, gender, marital status, familial status (which specifically refers to the number or ages of children in the household), physical, intellectual or emotional disability, sexual orientation, or other basis. All personal information of loan applicants will be kept confidential, per Section 4.4.

4.2 Program Marketing
Program marketing will be conducted by the Administrator and Lender’s designated staff. The Program marketing tools are as follows but not limited too:
• Conducting and arranging local news and social media coverage for the program. • Creating Marketing and informational brochures to be distributed to the local chamber of commerce, local business groups and local business organizational partnerships. • Presentating Infromational Forum and workshops to local business organizations and City Council as needed for a more effective outreach program. 159
12 • Working with local commercial lenders to help provide and distribute information about the program.
• Send out flyers will be sent to all local business owners in the program’s service area.

Lender’s designated staff will work closely with the Administrator to ensure that maximum outreach and program education takes place in the service area and applications are processed in accordance with these locally adopted program guidelines.

4.3 Loan Application Processing
Loan applications will be processed on a first come first served basis. Immediately upon receipt of the application, the Administrator will create a file that will contain the application and all subsequent documentation collected. The administrator will begin by reviewing the application and documents for the initial eligibility per Section 6.1. Applicants that do not meet basic CDBG requirements of the program will be sent a letter of explanation. All BA applications received, regardless of the outcome, will be kept on file to document fair lending standards.

Applications that meet basic eligibility requirements will be contacted for a site visit and collection of additional information by the Administrator. The Administrator will pay a visit to the businesses location and meet personally with the owner(s) in a safe environment.

Loan files will be set up as applications are received and compliance information is gathered.

The business will be required to provide accurate financials for past, current and future projection of the business operations. All owners will have credit checks conducted as part of loan underwriting per Section 6.0. The Administrator may provide sample financial Excel forms (balance / cash flow sheets, profit and loss, personal financial statements, and proforma) but in no instance will the Administrator’s or Lender’s staff generate financial numbers for an applicant. The applicant will be offered referrals to local business support organizations to assist applicants in producing proper financial statements, develop a business plan, conduct market study or develop industry accounting practices.

Loan applicants are responsible for providing accurate and timely information to the Administrator as part of the loan process. This may include:
• disclose all business owners with twenty percent or more ownership; • disclose all other businesses the owners have an ownership interest of twenty percent (20%) or more;
• provide current personal financial statements for each owner; • disclose sources of collateral and security;
• provide business historic financial information, including year to date; • disclose sources of cash for any equity investment proposed; • provide third party documentation of eligible project costs; • provide market study or document basis of future sales projections; 160
13 • provide management capacity documentation for ability to execute; • provide necessary information to clear federal overlays in Section 3.7.

If the loan applicant does not provide required information and documentation to the Administrator in a timely fashion, then there will be delays in the loan approval process.

Once the Administrator has compiled a complete loan file with all the credit, financial, and underwriting information needed to show loan is eligible under these guidelines, then a loan approval memo will be drafted. The memo will be submitted to Lender for their approval. Once approved, the Administrator and Lender will submit project set up report to Department and craft loan documents for signing at closing with the Borrower

4.4 Program Loan Approval Process - Loan Advisory Board The Lender’s Loan Advisory Board (LAB) shall be made up of an odd number of persons. The Lender’s staff will ask committee members to volunteer for this board. Committee members can be from local financial institutions, the Lender, or other interested parties who have the professional capacity to review and evaluate commercial loans. See Attachment A for Lender loan approval memo format.

Loan advisory board meetings will be scheduled by Lender staff in conjunction with Administrator staff once a loan has been underwritten and is ready for review and approval.

Lender staff will be responsible for reviewing each loan application funding proposal and recommending approval or rejection for the loan. The advisory board members may request additional information and or attach contingencies on closing or funding of the loan. If the loan is approved, then the project can move forward with loan closing.

If Lender approval is not obtained, then the BA loan applicant can take dispute resolution actions, per Section 4.5 of these guidelines.

4.5 Loan Applicant Confidentiality
Administrator or Lender or any persons involved in the loan process for this Program will not disclose any of applicant’s business or personal confidential information as part of loan review and approval process. All confidential information of businesses will only be disclosed to persons required to view the information as part of loan review and approval. All personal and business confidential information of loan applicants will be kept in a locked secured storage facility and are not available to persons outside of the program. If the Lender or Administrator or Department receives a formal public records request for a loan applicant file, then only nonconfidential information, as verified by legal counsel, will be provided.

4.6 Applicant Dispute Resolution/Appeals Procedure
Any business applying for assistance through the CDBG program has the right to appeal if their application is denied. The appeal must be made in writing to the Administrator and the Lender.

The Lender will schedule a meeting with the LAB for the appeal to be heard. If the application is denied a second time, then the person may ask to have their appeal presented to the Lender’s governing body for a final decision.
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14 4.7 No Conflict Of Interest Allowed
In accordance with Title 24, Section 570.611 of the code of federal regulations, no member of the governing body and no official, employee or agent of the local government, nor any other person who exercises policy or decision-making responsibilities (including members of the loan committee and officers, employees, and agents of the loan committee, the administrative agent, contractors and similar agencies) in connection with the planning and implementation of the CDBG program shall directly or indirectly be eligible for this program.

Exceptions to this policy can be made only after public disclosure and formal approval by the governing body and authorized in writing by Lender’s legal counsel. In the event representatives from the financial community serving on the Loan Advisory Board (LAB) have a financial interest (excluding regular checking and savings accounts) in a loan application, the member will not participate in any discussion or conversation relative to the application or participate in any aspect of the loan the approval process.

4.8 Exceptions / Special Circumstances
Exceptions are defined as any action, which would depart from policy and procedures stated in the guidelines. The Lender and Administrator’s staff may initiate consideration of an exceptional/special circumstance to the policies in these guidelines as long as it does not violate CDBG federal / state requirements. A written analysis of the exception will be prepared and submitted with loan approval request. This analysis shall contain a narrative, including the staff's recommended course of action and any written or verbal information supplied by the applicant.

The loan approval shall be made after review and acceptance of the exceptional/special circumstances request.

Examples of potential exception scenarios include, but are not limited to:
• A low-income person does not have the credit history or collateral required by underwriting. • A person of color does not have the traditionally recognized or minimal length of experience in the business

4.9 Loan Closing Process
After Lender approval, submittal BA Loan Certification and Project Set Up Report to Department, the Administrator and Lender will prepare for the loan closing with Escrow Company. The Administrator will prepare the loan closing documents; prepare title and lien searches, and UCC-1 filings, if appropriate. Lender legal counsel will review all agreements and documents, as necessary.

The Borrower will sign all the necessary documents and agreements. The Lender will request reimbursement of eligible costs from the Department after Borrower has submitted documentation of eligible expenditures and Lender has paid for those costs.

5.0 DESCRIPTION OF LOANS

5.1 Determination of Loan Amount
162
15 The Program’s minimum loan amount is $35,000.00. The maximum loan amount is $245,000.00. (Typical program loans are anticipated to be between $35,000 and $105,000.) Actual loan amounts will be based on the business’ need for capital to conduct the proposed project’s scope of work and meet public benefit standards. Most often the amount of CDBG funding is limited based on “gap” in project financing or ability of business to support new debt or pay for required jobs from business future cash flow projections or by the amount of collateral that the business can provide as security for the CDBG debt. If there are not sufficient CDBG funds for the project, then the Administrator can assist in finding other project funding.

5.2 Determination of Loan Term
The loan term is tied directly to what which project costs are funded with CDBG funds and what security is being pledged for the loan. For Example:
• If a business only wants operating capital then the term of the loan is normally five (5) years.
• If a business wants to pay for equipment and supplies, then the term of the loan can be extended out to 10 years.
• If the loan is for real property improvements and can be secured on real property, then the terms can be extended out to 20 or 30 years.

A loan amortization term can be longer than the loan term, so an equipment loan may have a term of ten years but an amortization term of fifteen years, which will create a lump sum payment at year ten. The Administrator will confirm that the proper term is given based on the use of the CDBG funds and loan security / collateral being provided.

5.3 Determination of Loan Interest Rate
Typical loan interest rates will start with three percent (3%). This rate will be increased, if the investment of CDBG funds at the three percent level causes the business to have an excessive profit, or return on investment (ROI). See HUD underwriting standards discussion of undue enrichment on Department’s BA Activity Chapter webpage for direction on how to set interest rate to comply with this standard. By allowing the interest rate to move and not be fixed, the Lender can best tailor the loans under this program to meet the cash flow needs of different businesses in the community and ensure public benefit and national objective standards are met.

The calculation of the interest rate for the loan will be based on the underwriting analysis conducted by the Administrator and review by the Lender. Some of the factors that will drive the interest rate are:
1) amount of equity the business brings into the proposed project; 2) ability of business to service the loan;
3) rate of return the borrower will receive;
163
16 4) credit risk factors and management experience. By allowing interest rate flexibility, the

5.4 Loan Processing Fees
The CDBG program provides administration and activity delivery funds to pay for loan processing and servicing costs. No direct loan fees will be charged to the borrower. However, the Lender may charge a loan servicing fee to the borrower at the close of the loan. Loan servicing fees may not be charged for costs covered and paid for with activity delivery funds.

There are no loan pre-payment penalties for loan provide through this program.

6.0 LOAN UNDERWRITING STANDARDS

6.1 Initial Loan Evaluation
CDBG funds are designed to support people, communities, and businesses who have not historically (and often do not presently) have access to traditional forms of financing. The Lender may utilize the questions below to identify the people and businesses who would benefit the most from CDBG support, and as a way to mitigate the harm done by a financial system that fails to include them.

Each project/business will be evaluated based on historical past performance, future financial projections and the extent to whucih supporting the business supports the mission of the CDBG Program. Specifically the following questions should be asked upon receipt of a loan application. While answers will vary by applicant, these questions are designed to identify eligibility but also highlight areas of assistance to support applicants in successfully completing the terms of the loan.
• Is business an eligible applicant, per Section 3.1?
• Are the proposed project costs eligible, per Section 3.2 & 3.3? • Will project meet a CDBG national objective, per Section 3.4? • Will business meet public benefit jobs required in Section 3.5? • Does project appear to meet six HUD underwriting standards, per Section 3.6? • Are federal overlays triggered that will adversely impact project development? • Are the business and all owners’ credit worthy?
• Does the business and owner pay bills on time, collect on time? • Does owner have a detailed “business plan”?
• Does owner have documented market demand for projected sales? • Does owner have management capacity to operate the business? • Does owner have financial accounting capacity to operate the business? 164
17 • Is the owner contributing a reasonable amount of equity? • Is the owner able to get conventional bank financing, if not, why not? • Was the business financially viable in the past (net income covers debt)? • Are there reasonable financial assumptions for future viability/success? • Is there enough collateral available to secure the proposed loan? • Is the owner’s personal financial status stable?
By collecting enough initial application information from the Borrower(s) to answer the above list of questions, the Administrator will have a good sense of how strong a borrower is and how successful they will be if assisted with a CDBG loan. Most of this information is collected on the loan application form and verified verbally at the initial site visit with the owner. By meeting the borrower and asking these questions the Administrator will know what additional information/documentation needs to be collected to provide a clear picture of how CDBG funds can be used to assist the BA loan applicant. These questions demonstrate the need for CDBG funds and business eligibility.

After the initial review, the Administrator/ application processor will collect the proper information required for loan underwriting. The required documentation is listed in the CDBG underwriting guidance document provided on Department’s BA Activity Chapter webpage.

At this same time, Administrator and Lender will begin regulatory compliance documentation, per Section 3.5. The amount of documentation and detailed underwritin is based on size of the loan and type of business (existing or start up) and what LMI national objective is used.

Additional documentation may be required for a business with special circumstances.

6.2 Personal and Business Credit Requirements
Each applicant will have third party credit reports obtained showing credit scores and payment history. All owners and their spouses with twenty percent (20%) or more interest in the business will have their credit reports reviewed.

It is not uncommon for business owners and/or businesses to have a low credit score or lack of credit history. If a personal credit reporting service provides a low credit score or shows poor credit history, the Lender should use trauma-informed approaches to gather more information from the owner, so that the Lender can generate written documentation in support of approving the loan.

If it is available, the Dunn and Bradstreet report for the primary applicant business and all associated businesses of the owners (20% or more ownership) will be reviewed. If a Dunn and Bradstreet report is not available, as is commonly the case, the Lender will contact vendors or suppliers of the business to inquire as to the business payment history.

Most credit reporting services will provide credit scores. For this program, credit scores of 550 and above are considered good credit. If no credit scores are available then a narrative must be summarized by the Administrator to give a justification for making a determination of good or bad credit. This same narrative process will be used for the business credit reports 165
18 to demonstrate the good standing or poor standing of the business being evaluated.

6.3 Personal and Business Financial Information
Personal financial statements will be required for each person who owns 20% or more of the business. Financial statements need to show all assets and liabilities of the interest holder. In addition to these statements, federal tax return statements for owners and the business for the past three years are needed to give a historic perspective of income.

For the business fiscal year, historic financial statements will be required. These will consist of the past three year’s balance sheets and cash flow statements, generated from pas tax returns and quarterly year to date statements. These statements should be put together by the person responsible for doing the bookkeeping and finance management for the business. Past tax returns will be provided to document the statements provided. Based on these statements, the Lender/ Administrator can develop ratios for debt service and payment history, etc.

The business will also need to provide future projected financials. These will consist of pro formas showing projected revenue and costs for the business on a monthly basis for each fiscal year for a minimum of three years from the application date. A new business / start-up may need to provide five years of projection statements to show breakeven point of business. Two sets of pro formas need to be completed: one showing the business projections with CDBG financing; and a second set showing the business with conventional financing. This will provide evidence of the benefit / increased profit the business is receiving by using the more affordable CDBG loan. These pro formas must also show the increased costs to the business from adding the new job positions and the CDBG debt service.

A project sources and uses form must be provided to show all funding is required for completing all the proposed project loan activity. This form will show the owner’s equity as well as private bank financing and any other investments from other sources. The sources and uses give a clear idea of what costs the CDBG loan will cover and its information must be reflected in the pro formas as described above.

Using the information in these financial statements, along with any back up documentation required, will allow the Administrator to do the project’s underwriting analysis. This analysis will include both the conventional lending underwriting and HUD required underwriting. This analysis will be provided to the LAB for use in loan approval.

6.4 Collateral Requirements
All loans under this program will be collateralized using standard commercial lending standards. Collateral coverage will be assessed based on assets available as security and the level at which thet are already liened. CDBG funding is typically in a subordinate position to banks and other lenders.

The goal of the program is to get the best lien position possible to ensure loan repayments and permanent job creation. Types of collateral mayinclude:
• Secured liens on real property,
• UCC liens on machinery, equipment, or other fixtures, 166
19 • Lease assignments, as appropriate,
• Personal and corporate guarantees, as appropriate, and; • Life insurance and other collateral, as appropriate.

Appraisal of assets may be required as part of determining how to obtain the best lien positions for the CDBG loan. Combined loan to value ratio on collateral for the typical CDBG loan should not exceed ninety percent (90%). Equipment and inventory secured should be properly discounted to reflect actual resale value when doing loan to value calculations.

6.5 Business Experience And Management Capacity
The BA loan applicant shall provide resumes and management histories to show the experience of business owners and their management staff in successful operation of the existing business or something comparable. Existing businesses proposing to use CDBG BA funds to create jobs, must have at least an updated business plan if not a new plan.

For BA loan applicants proposing to use CDBG funds for a non-operational start-up businesses or for applicants that wish to use CDBG funds to purchase an existing business or for applicants that wish to use CDBG funds for job retention (to keep the business from closing) a comprehensive business plan will be required. The comprehensive business plan will include a detailed analysis of what management capacity is needed for the business to be successful and identify resources that the business will utilize to meet the identified capacity needs.

The Administrator will retain the resumes and management histories for the application file to show the experience of business owners and their management staff in successful operation of the existing business or a comparable business. This will be most important with start up businesses or with applicants that wish to use CDBG funds to purchase an existing business that is closing.

7.0 LOAN SERVICING

7.1 Loan Servicing Agent & Responsibilities
Borrower will be provided loan servicing information from the Lender. The Lender will retain all original project files within locked storage. Original legal documents will be kept in locked fire proof filing system for future loan servicing. Lender will provide annual income tax interest statements to the borrower for their tax purposes.

BA loan repayments will be collected by Lender’s loan servicing agent:

Agency: City of Soledad
Physical Address: 248 Main Street, Soledad, CA 93960
Mailing Address: P.O. 156 Soledad, CA 93960
Phone Number: (831) 223-5178
E-Mail Address: [email protected]
All loan payment will be made directly to the Lender and deposited into current CDBG PI accounts. If payments are collected by a third party, all gross collected CDBG BA loan payments 167
20 will be provided to the Lender on a monthly basis for deposit into the proper CDBG program income account.

The borrower may be required to provide the Lender / loan servicing agent with periodic financial statements of the business and proof of insurance annually. Upon reviewing the borrower’s financial statements, the Lender may require the business to take actions that improve the business cash flows. Borrower may be required to meet with business development staff to assist in stabilizing or building capacity.

Borrower must disclose any sale of equipment or assets that are used as loan security by the Lender. The borrower may submit a written request to the Lender to change the CDBG loan terms, if the business is not able to fully service CDBG debt repayments or if they wish to prepay the loan by making one or more larger payments.

7.2 Loan Servicing Policies
The Lender has adopted a set of loan servicing policies that outline how the loan servicing agent will proceed if payments are late or no payments are received. The policies also outline how loan files will be set up and protected. A copy of these adopted loan servicing polices will be provided to each BA loan recipient at loan closing.

8.0 PROGRAM OVERSIGHT BY LENDER

8.1 Oversight of Program Administrator:

The Lender is ultimately the responsible entity for the CDBG BA loan program. Lender will oversee the Administrator and communicate with the loan applicants and borrowers as needed to explain CDBG compliance. The Lender’s designated staff will serve as the primary contact with the State CDBG program representative and will be responsible for working with the Administrator to implement the program.

The Administrator is responsible to the Lender and loan applicants to assure that the Program is implemented in compliance with these program guidelines, and state and federal regulations.

In addition, Administrator staff will ensure that loan applicant projects are underwritten in a timely and responsible manner. This includes working closely with BA loan applicants to ensure they provide accurate financial statements through documenting BA project compliance for project close-out with Department and HUD. Administrator will review all loan documents with borrowers prior to loan closing.

8.2 Oversight of Loan Servicing Agent
The Lender’s staff will be responsible for servicing the loan or may secure the services of a loan servicing agent. The Lender’s staff or a loan servicing agent will comply with local loan servicing policies when collecting payments. All loan repayments of past CDBG economic development loans will be serviced by the Lender’s staff or an agency experienced in collecting and servicing business loans. The Lender’s staff will work closely with the loan servicing agent in monitoring the Lender’s existing economic development loans. The Lender’s staff or loan servicing agent will provide monthly reports on the status of loan payments to be reviewed by the Lender’s Program over site staff and fiscal staff.
168
21 At each LAB meeting, the Lender’s staff and/or loan servicing agent will brief the LAB members on any problems or concerns regarding repayments of existing loans which may include decisions to foreclose and declare defaults. The governing body with direction and consultation provided by staff and legal counsel will make the final decision regarding troubled assets.

The Lender’s staff or loan servicing agent will complete the proper quarterly and annual program income reports for review, approval, signature and submittal by the Lender to the State CDBG program representative.
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SUBJECT: Resolution No. 6163, A Resolution of the City Council of the City of Soledad Approving the Reorganization of the Public Works Department Wastewater Facility Operations Staff
TO: Honorable Mayor Velazquez and City Council
FROM: Donald Wilcox, Public Works Director
MEETING DATE: October 2, 2024

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council of the City of Soledad adopt Resolution No.6163, “A Resolution of the City Council of the City of Soledad Approving the Reorganization of the Public Works Department Wastewater Facility Operations Staff." Executive Summary
In 2010, with the upgrade of the Water Reclamation Facility (WRF), the plant operated with two Utility Maintenance Mechanic (UMM) positions, which was sufficient because the equipment was new. As equipment aged and additional maintenance was required, a third UMM position was added in 2022.

However, when the FY24/25 budget was adopted, the third UMM was unfunded because of the reallocation of several other positions. Without the third mechanic, the deferred maintenance list will continue to grow, exposing the plant to equipment failure and the mechanics to a higher risk of injury due to the nature of the job's labor demands. Therefore, Staff recommends reorganizing the Water Reclamation Facility by establishing a job description and salary range for the Utility Maintenance Supervisor classification, reallocating the existing Interim Maintenance Manager to the new Utility Maintenance Supervisor Position, eliminating the Maintenance Manager classification, and reinstating the third UMM position. This reorganization will have minimal impact on the budget as temporary operations staff from FY23/24 was carried over to FY24/25.

Background
On April 1, 2009, the City Council approved a staffing plan in preparation for the Wastewater Facility upgrade. The staffing plan included one (1) Water Resources Manager, one (1) Chief Plant Operator, two (2) Water Reclamation Operators - Grade II, one (1) Water Reclamation Operator - Grade I, and one (1) Water Reclamation Operator in Training.
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On June 23, 2010, the Council approved two (2) Water Reclamation Shift Supervisors and three (3) Utility Maintenance/Electrician positions. Eventually, the Utility Maintenance/Electrician positions were reclassified to one (1) Electrician and two (2) Utility Maintenance Mechanics. As the equipment was new at the time, two mechanics were sufficient, but as equipment aged and additional maintenance was required, a third UMM position was added in 2022.

On June 19, 2024, during the FY 24/25 budget adoption process, one UMM position was unfunded, and one Management Analyst position was added. Subsequently, the Maintenance Manager stepped into the Management Analyst role, and the Senior Utility Maintenance Mechanic stepped into the Interim Maintenance Manager position. However, as equipment has aged and additional maintenance is required, the department cannot afford to be without a third UMM as the WRF is an essential facility which requires any maintenance not completed by City staff to be contracted, and which is expensive and hard to find on-call readily available specialized repair companies.

Review & Analysis
The deferred maintenance list continues to grow, exposing the plant to equipment failure and the operations staff to a higher risk of injury due to the nature of the job's labor demands. The WRF staff has been working extremely long hours to keep up with the maintenance, demonstrating the need for additional personnel.

Soledad Public Works Utility Maintenance Mechanics are responsible for maintaining and repairing a wide variety of skilled utility maintenance and repair work on the equipment and facilities associated with the production, treatment, and distribution of potable water and water reclamation operations.

They also perform major and minor repairs to division vehicles and equipment.

The proposed staff reorganization implements the necessary staffing changes in the Public Works Water Reclamation Facility to meet the facility's maintenance and upkeep needs and requirements. Staff recommends reorganizing the WRF staff by establishing a job description and salary range for the Utility Maintenance Supervisor classification, reallocating the existing Interim Maintenance Manager to the Utility Maintenance Supervisor Position, and eliminating the Maintenance Manager position.

Maintenance Manager duties have been incorporated into this new position, which will allow the Utility Maintenance Supervisor to manage assets and work orders as well as oversee and manage the UMM staff.

No budget adjustments are required for the new Utility Maintenance Supervisor since the salary range is less than the Maintenance Manager's salary range, resulting in approximately 5% annual savings. The recommended salary range for the Utility Maintenance Supervisor job classification is Range 59 ($7,209.31 - $8,597.24 per month) of the Mid Management Salary Schedule. It would be represented by the Service Employees International Union (SEIU) Local 521 Mid-Management Unit.

The equipment and vehicles for wastewater and water are aging and require constant maintenance and repairs. As part of the WRF Division's reorganization, staff is also proposing the reinstatement of the third previously unfunded UMM. The city would not incur additional costs with the change, and it would not impact the budget since the UMM salary and benefits would be covered by the temporary operations staff budget, which was carried over from the previous fiscal year and included in the budget for the current FY24/25.
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Resolution No. 6163
Exhibit A
CURRENT - Public Works Org Chart
PROPOSED - Public Works Org Chart
Financial Considerations
There is no additional cost or adjustments needed. The cost for the third Utility Maintenance Mechanic was incorporated into the FY24/25 budget. No costs will be incurred with the reallocation of the Maintenance Manager to the new Utility Maintenance Supervisor position.

Alternatives
• Adopt the Resolution to approve the reorganization of the Public Works Department Wastewater Facility Operations Staff.
• Modify the Resolution.
• Do not approve the Resolution.

Planning/CEQA
The proposed reclassification is not considered a project for CEQA purposes.

Public Notice Requirements
None.

Attachment(s):
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RESOLUTION NO. 6163

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD APPROVING

THE REORGANIZATION OF THE PUBLIC WORKS DEPARTMENT

WASTEWATER FACILITY OPERATIONS STAFF
WHEREAS, the Soledad Public Works Water Reclamation Facility Utility Maintenance Mechanic staff is responsible daily for the repairs and maintenance of the wastewater and water facilities, including on-call after-hours; and
WHEREAS, the deferred maintenance list continues to grow, exposing the plant to equipment failure and the operations staff to a higher risk of injury due to the nature of the job's labor demands; and
WHEREAS, the proposed staff reorganization implements the necessary staffing changes in the Public Works Water Reclamation Facility to meet the facility's maintenance and upkeep needs and requirements; and
WHEREAS, Staff recommends reorganizing the WRF staff by establishing a job description and salary range for the Utility Maintenance Supervisor classification, reallocating the existing Interim Maintenance Manager to the Utility Maintenance Supervisor Position, and eliminating the Maintenance Manager position; and
WHEREAS, the recommended salary range for the Utility Maintenance Supervisor job classification is Range 59 ($7,209.31 - $8,597.24 per month) of the Mid Management Salary Schedule; and
WHEREAS, as part of the WRF Division's reorganization, staff is also proposing the reinstatement of the third previously unfunded UMM; and WHEREAS the reorganization will have minimal impact on the budget as the Utility Maintenance Supervisor’s salary range is 5% less than the Maintenance Manager position and the reinstatement of the third Utility Maintenance Mechanic position will be covered by funds approved for temporary operations staff included in FY23/24 and carried over to the FY24/25.

NOW THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Soledad hereby (1) Approves the job classification for Utility Maintenance Supervisor, (2) Adopts the attached job description, marked herein as Exhibit A, (3) Establishes a salary range as follows for the Utility Maintenance Supervisor: Range 59 ($7,209.31 - $8,597.24 per month) of the Mid Management salary schedule, and (4) Approves the reallocation of one existing full-time position and (5) Approves the reinstatement of a third Utility Maintenance Mechanic.

PASSED AND ADOPTED by the City Council of the City of Soledad at a regular meeting duly held on the 2nd day of October 2024 by the following vote:
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AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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CITY OF SOLEDAD Approved: 8/14/24
FLSA: NON-EXEMPT

UTILITY MAINTENANCE SUPERVISOR

DEFINITION
Supervises and oversees personnel engaged in utility maintenance and repair work on the equipment and facilities associated with the production, treatment, and distribution of potable water and water reclamation operations. Plans and implements maintenance and repair projects to ensure plant equipment and vehicles operate properly and efficiently; provides technical expertise on more complex maintenance issues. Tests, implements, inputs data, and maintains Computerized Maintenance Management System (CMMS), asset management analysis, and program development for all Public Works Departments; and performs other work as required.

SUPERVISION RECEIVED AND EXERCISED
Reports directly to and receives general direction from the Chief Plant Operator or designee. Exercises direct supervision over assigned personnel. Maintains and operates the Public Works Computerized Maintenance Management Systems (CMMS) and projects related to the maintenance program.

CLASS CHARACTERISTICS
The Utility Maintenance Supervisor level recognizes positions that perform full supervisory responsibilities including planning, assigning and evaluating the work of subordinates and responsibility for overall equipment and vehicle maintenance activities of the water and water reclamation operations, including maintenance, rehabilitation, and installation of mechanical equipment. Performs the full range of duties as assigned, working independently, applying well-developed skills, and exercising judgment and initiative.

This position performs specialized technical work in maintaining the CMMS database.

ESSENTIAL JOB FUNCTIONS
➢ Implements goals and objectives related to assigned section; establishes schedules and methods for wastewater treatment plant maintenance and rehabilitation; implements policies and procedures. ➢ Plans, prioritizes, assigns, supervises and reviews the work of staff involved in preventive and predictive maintenance activities associated with the wastewater treatment plant, fleet and equipment. ➢ Evaluates operations and activities of assigned section; recommends improvements and modifications; prepares various reports on operations and activities. ➢ Assists in developing and administering section budget; prepares cost estimates for budget recommendations; submits justifications for equipment, materials and supplies; monitors and controls expenditures.
➢ Provides and coordinates staff training; works with employees to correct deficiencies; implements discipline procedures; evaluates employee performance; drafts and conducts performance evaluations.
➢ Assesses, schedules, and assigns predictive and preventive maintenance tasks; troubleshoots mechanical equipment and systems; estimates time, cost, labor and material needs, and orders necessary equipment and materials.

EXHIBIT A
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➢ Inspects locations where work is being performed; ensures conformity with work orders, submittals, plans, diagrams and specifications; determines special equipment needs and assesses and identifies solutions to problems; accurately diagnoses mechanical malfunctions. ➢ May help coordinate confined space entries to operate and maintain mechanical equipment, if needed. ➢ Receive and investigate complaints from the public and recommends corrective action as necessary to resolve complaints.
➢ Manages the work induction process to assign work and make acquisition decisions. ➢ Maintains and trains usersin the use of the Computerized Maintenance Management System (CMMS); ensures new assets are entered into the database and ensures accuracy of data; maintains accurate records and files of work performed, materials, and supplies used. ➢ Assists management in obtaining bids for contractor work; assists in the coordination of outside contractors.
➢ Identify maintenance trends and recommend improvements and modifications to equipment, maintenance activities and operations, and materials/stores procurement and inventory management. ➢ Develops and maintains the Standard Operating Procedures for the preventative maintenance program.
➢ Works with other departments on projects and tasks as assigned. ➢ Builds and maintains positive working relationships with co-workers, other Agency employees and the public using principles of good customer service.
➢ Performs related duties as assigned.

QUALIFICATIONS
Knowledge of:
➢ Principles and practices of employee supervision, including work planning, assignment, review and evaluation, discipline, and the training of staff in work procedures. ➢ Principles and practices of mechanical equipment maintenance, installation and rehabilitation of wastewater, water and collection system maintenance.
➢ Advanced methods for troubleshooting and diagnosing problems with equipment and machinery. ➢ Equipment, tools and materials used in wastewater treatment equipment maintenance, installation and rehabilitation.
➢ Methods and procedures for diagnosing industrial mechanical malfunctions. ➢ Methods and procedures of competitive bidding processes including how to review and prepare accurate equipment plans and specifications.
➢ Safety practices, procedures, and equipment pertaining to work. ➢ Modern office practices, methods, and computer equipment including relevant software programs. ➢ Principles and effective use of Computerized Maintenance Management System (CMMS) ➢ Asset Management concepts related to water/wastewater facilities. ➢ Principles, practices, equipment, materials, and tools used for assigned maintenance and repair programs and projects.
➢ Applicable Federal, State, and local laws, ordinances, regulations, and guidelines relevant to assigned duties.
➢ Basic principles and practices of budget monitoring and capital improvement program development, administration, and accountability.
➢ Principles and practices of contract administration and evaluation. ➢ Record keeping principles and procedures.
➢ English usage, grammar, spelling, vocabulary, and punctuation. ➢ Techniques for providing a high level of customer service to public and City staff, in person and over the telephone.
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Ability to:
➢ Assist in developing and implementing goals, objectives, practices, policies, procedures, and work standards.
➢ Supervise, train, and evaluate the performance of assigned work staff. ➢ Organize, implement, and direct the installation, maintenance, repair, rehabilitation, and troubleshooting of a wide variety of mechanical equipment used in wastewater treatment facility operations.
➢ Know and understand all requirements and essential aspects of the job, including safety rules, ability to locate, analyze, detect, and diagnose problem equipment and determine solutions. ➢ Analyze, interpret, apply, and enforce Federal, State, and local policies, procedures, laws, and regulations.
➢ Enter data on work orders, reports, and other documents; identify, interpret, and communicate technical information.
➢ Develop cost estimates for supplies and equipment and accurately estimate time, labor, and materials for proposed work.
➢ Understand and carry out oral and written instructions and prioritize workload to meet deadlines. ➢ Accurately utilize CMMS and other similar software as required to maintain equipment records and assign work orders.
➢ Perform a variety of specialized work assignments requiring knowledge of plant and related facilities, systems, and equipment.
➢ Read, interpret, and work from sketches, schematic diagrams, and equipment manuals. ➢ Maintain manual and automated logs, records, reports, and charts. ➢ Establish and maintain a variety of filing, record-keeping, and tracking systems. ➢ Operate modern office equipment including computer equipment and software programs. ➢ Effectively communicate in person, over the telephone, two-way radio, and in writing. ➢ Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
➢ Establish and maintain effective working relationships with those contacted in the course of the work.

Education and Experience:

Any combination of experience and education/training that would likely provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Equivalent to the completion of the twelfth (12th) grade and five (5) years of increasingly responsible journey-level experience in the installation, maintenance, and repair of mechanical equipment within a wastewater treatment facility or similar, including one year providing technical and/or functional supervision over assigned personnel and two (2) years working with databases and reporting software.

Licenses and Certifications:
➢ Valid California Class C driver’s license with satisfactory driving record. ➢ Grade I Wastewater Operator Certificate as issued by the California State Water Resources Control Board.

PHYSICAL DEMANDS
Must possess mobility to work in standard City facilities including: Parks, streets, water, and water reclamation operations facilities; strength, stamina and mobility to perform and complete inspections, data gathering, around machines, and possibly operate varied hand and power tools and equipment; vision to read printed materials and a computer screen; color vision to read gauges and identify appurtenances; and hearing and speech to communicate in person and over the telephone or radio. The job may involve walking in operational areas to identify problems or hazards. Finger dexterity is needed to access, enter and retrieve data using a computer keyboard or calculator and to operate above-mentioned tools and equipment. 177 Positions in this classification may require bending, stooping, kneeling, reaching and climbing to perform work and inspect work sites. Employees must possess the ability to lift up to 25 pounds, carry, push, and pull materials and objects necessary to perform job functions.

ENVIRONMENTAL ELEMENTS
Office environment. Some exposure to outdoors, loud noise levels, vibration, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes.

May interact with upset staff and/or public and private representatives, and contractors in interpreting and enforcing departmental policies and procedures.
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Public Works
Director
(1)
Assistant
Engineer
(2)
Water Resources
Manager or
Civil Engineer
(1 Flexible)
Water Resources
Manager or
Civil Engineer
(1 Flexible)
Water
Reclamation
Chief Plant
Operator
(1)
Electrician
(1)
Water
Reclamation
Operator
(5)
Senior Utility
Maintenance
Mechanic
(1)
Utility
Maintenance/
Mechanic (1)
Water
Reclamation
Shift Supervisor
(2)
Public Works
Manager –
Utilities
(1)
Public Works
Manager –
Utilities
(1)
Water Systems
Operator
(4)
Wastewater
Collections
Systems
Supervisor
(1)
Maintenance
Manager
(1)
Administrative
Assistant/
Source Control
(1)
Public Works
Manager
Parks/Streets/
Facilities
(1)
Fleet Machanic
(1)
Maintenance
Mechanic
(1)
Senior
Maintenance
Worker
(1)
Maintenance
Worker
Temporary (7)
Management
Analyst (1)
Executive
Assistant
(1)
APPROVED 06.19.2024
City of Soledad
Public Works Department
FY 2024/2025
37 FTE
Wastewater
Collections
Operator In
Traning
(1)
179
Public Works
Director
(1)
Assistant
Engineer
(2)
Water Resources
Manager or
Civil Engineer
(1 Flexible)
Water Resources
Manager or
Civil Engineer
(1 Flexible)
Water
Reclamation
Chief Plant
Operator
(1)
Electrician
(1)
Water
Reclamation
Operator
(5)
NEW Utility
Maintenance
Supervisor
(1)
Senior Utility
Maintenance/
Mechanic
(1)
Water
Reclamation
Shift Supervisor
(2)
Public Works
Manager –
Utilities
(1)
Public Works
Manager –
Utilities
(1)
Water Systems
Operator
(4)
Wastewater
Collections
Systems
Supervisor
(1)
Administrative
Assistant/
Source Control
(1)
Public Works
Manager
Parks/Streets/
Facilities
(1)
Fleet Machanic
(1)
Maintenance
Mechanic
(1)
Senior
Maintenance
Worker
(1)
Maintenance
Worker
Temporary (7)
Management
Analyst (1)
Executive
Assistant
(1)

PROPOSED
City of Soledad
Public Works Department
FY 2024/2025
38 FTE
Wastewater
Collections
Operator In
Traning
(1)
Maintenance
Manager
ELIMINATE (1)
Utility
Maintenance/
Mechanic
(1 Existing +
1 Reinstate = 2)
Utility
Maintenance/
Mechanic
(1 Existing +
1 Reinstate = 2)
Utility Maintenance Mechanic position to be reinstated.

New Utility Maintenance Supervisor position to be created.

Maintenance Manager position to be eliminated. FTE to be reallocated to New UMS position.
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