Watsonville City Council
April 26, 2022

3 3. The “Bishop Method” only analyzes circular failures by moment equilibrium when determining the slope stability factor of safety, ignoring the horizontal force equilibrium.

We utilized a method that analyzes both the moment and horizontal force equilibrium (i.e., Spencer and Morgenstern & Price methods) and checked for non-circular failure surfaces.

Removal of Existing Fills – The previous report recommends that all the existing fill, 0 to 10-feet thick, should be removed and replaced with compacted fill prior to placing new fill. Although we agree that the existing fill should be removed prior to placing fill if the proposed structures are highly sensitive to settlements, it is our opinion this conclusion is reasonable from a geotechnical standpoint if typical shallow foundations are utilized to support the structures.

Removal of the existing fill soils may not be necessary if the foundation systems for the structures are designed to accommodate the geologic and geotechnical site conditions.

Additional discussion and foundation design criteria is presented in Section 6.3.

Seismic Design Criteria – The report includes 2016 California Building Code (CBC) seismic design criteria. The 2016 CBC was the governing code at the time the report was published; however, the 2019 CBC was officially adopted in January 2020. 2019 CBC seismic design criteria are presented in Section 6.2.

Foundation Recommendations – The previous geotechnical investigation report recommends the proposed structures to be supported on deepened shallow foundations or post tensioned concrete mat slabs-on-grade. We agree that these two options are feasible. However, if at least the upper three feet of expansive soil is replaced, lime treated, or replaced with compacted nonexpansive imported fill, the shallow foundations would not require deepening.

Deep foundations may be utilized to support the structures; however, deep foundations (i.e., drilled piers, auger-cast piles, helical anchors, torque down piles, etc.) may be difficult to construct if debris is encountered during construction. A site plan could be prepared based on historic stereo paired aerial photos and compared to current topographic maps to aid in determining the location of potential fill and debris.

If used, deep foundations should be interconnected with grade-beams formed on top of void boxes to prevent uplift pressures from expansive soils impacting the structure. If the existing fill and debris has been removed, the deep foundation system may consist of a helical anchor and grade-beam system.

Retaining Walls – The older plans indicate tiered retaining walls up to 13-feet in height will be constructed and backfilled on the north and eastern sides of the property to create level building pads. It is our opinion a mechanically stabilized earth retaining wall system (i.e., Versa-Lok, Keystone, etc.) would be the most cost-effective retaining wall type to support fills. Additionally, wall heights may be reduced by sloping the fills between the tiered walls to 2:1 (horizontal:vertical). Alternatively, retaining walls may be further reduced or eliminated if the residences are constructed partially on sloping ground or bi-level lots, provided they are supported on a deep foundation system.

Pavement Design – The report provides multiple pavement sections for Traffic Indices (T.I.) and assuming an R-Value of 5 for existing subgrade soils. We agree an R-Value of 5 for the existing highly expansive clayey soil condition is appropriate. However, it is our opinion the subgrade RValue may be increased by either lime treating or removing the existing soils and replacing with Exhibit B

4 imported non-expansive soils. Both options were recommended in the geotechnical investigation report. Additionally, the R-Value may be increased by installing a geotextile on the subgrade level prior to placing baserock. Pavement recommendations are presented in Section

6.8 of this report.

3.2 Civil Plan Review
Based on our review of the preliminary site and grading plans, significant site grading would be necessary to develop the site with anticipated cuts up to 10-feet and fills up to 25-feet. Retaining walls up to 13-feet were proposed to support fills along the northern and eastern sides of the property. The previously planned finished grades of the subdivision are fairly level with elevations between 65- and 52-feet above sea-level. A small extension of Loma Vista Drive is planned for access to the future subdivision at the western end of the property.

It is our opinion there could be significant cost savings if the grading plan is modified to allow the site to retain its overall general slope inclination downward from the southwest to the northeast.

Moderate site grading would still be required to remove existing fill, if necessary, create roads, and prepare building pads. If this option is pursued the lots would “step-down” with the overall grade. The thick fills and tall retaining walls would not be necessary along the northern and eastern property lines. The residences located on the northern and eastern property lines may consist of split-level homes constructed on grade with some minor site grading required and possibly shorter retaining walls to create level backyard space. These residences may need to be supported on a drilled pier foundation system. Additionally, a sanitary sewer pump may be required to due to grade differences.

4.0 SITE CONDITIONS
We performed a site reconnaissance on December 18, 2020 and December 2, 2021 to observe existing conditions at the site. The project site is located on a relatively level knoll. The area has recently been cleared with a majority of the surface now covered in exposed soil, low grasses, and large shrubs. Mature trees line the northern and eastern perimeter of property along the bank of the Watsonville Slough. Existing residential subdivisions are located along the western and southern property lines.

In the proposed building area surface elevations range between 50 to 70-feet above sea-level.

The northern and eastern ends of the development area are set atop, up to an existing approximate 10- to 15-feet tall 2:1 (horizontal:vertical). A relatively level “bench”, approximately 20 to 50-feet wide, is located below this slope. An additional 10- to 20-foot tall 5:1 to 2:1 slope is located below this intermediate slope and terminates at the Watsonville Slough.

4.1 Regional Geology
The project site lies within the Coast Ranges geomorphic province of California. Regional topography within the Coast Ranges province is characterized by northwest-southeast trending mountain ridges and intervening valleys that parallel the major geologic structures, including the San Andreas Fault System. The province is also generally characterized by abundant landsliding and erosion, owing in part to its typically high levels of precipitation and seismic activity.

As shown on Figure 3, geologic mapping (USGS, 1997), indicates the site is underlain by Quaternary Watsonville Fluvial (map symbol Qwf) and Basin (map symbol Qb) deposits. Typically, fluvial deposits consist of poorly sorted, semi-consolidated, sand, silt, and gravels deposited by Exhibit B

5 river or stream action. Basin deposits typically consist of highly plastic silty clay with interbedded layers of sands and gravels deposited at base of estuaries, lagoons, lakes, etc.

4.2 Seismicity
The project site is located within a seismically active region that includes the Central and Northern Coast Mountain Ranges. An “active” fault is defined as one that shows displacement within the last 11,000 years and, therefore, is considered more likely to generate a future earthquake than a fault that shows no evidence of recent rupture.

4.2.1 Active Faults in the Region
The California Department of Conservation, Division of Mines and Geology has mapped various active and inactive faults in the region (CDMG, 1972 and 2000). These faults are shown in relation to the project site on the Active Fault Map, Figure 4. The Zayante Vergeles Fault is the nearest known active fault and is located approximately 4.3- kilometers (2.7-miles) northeast of the site (Google Earth, 2020).

4.2.2 Historic Fault Activity
Numerous earthquakes have occurred in the region within historic times. A map showing the epicentral locations of significant earthquakes in the Bay Area between 1985 and 2016 is shown on Figure 5, including the 1989 Loma Prieta Earthquake with the epicenter located in the Santa Cruz Mountains.

4.2.3 Probability of Future Earthquakes
The site will likely experience moderate to strong ground shaking from future earthquakes originating on any of several active faults in the San Francisco Bay region.

The historical records do not directly indicate either the maximum credible earthquake or the probability of such a future event. To evaluate earthquake probabilities in California, the USGS has assembled a group of researchers into the “Working Group on California Earthquake Probabilities” (USGS 2003, 2008; Field et al 2015) to estimate the probabilities of earthquakes on active faults. These studies have been published cooperatively by the USGS, CGS, and Southern California Earthquake Center (SCEC) as the Uniform California Earthquake Rupture Forecast, Versions 1, 2, and 3 (aka UCERF, UCERF2, and UCERF3, respectively). In these studies, potential seismic sources were analyzed considering fault geometry, geologic slip rates, geodetic strain rates, historic activity, micro-seismicity, and other factors to arrive at estimates of earthquakes of various magnitudes on a variety of faults in California.

Conclusions from the most recent UCERF3 and USGS (Aagaard, et. al., 2016) indicate the highest probability of a M>6.7 earthquake on any of the active faults in the San Francisco Bay region by 2043 is assigned to the Hayward/Rodgers Creek Fault system, located approximately 67.0-kilometers (41.5-miles) northeast of the site, at 33%. The San Andreas Fault located approximately 8.1-km (5.0-miles) northeast of the site is assigned a 22% probability of rupture resulting in a M>6.7 or greater earthquake.

Additional studies by the USGS regarding the probability of large earthquakes in the Bay Area are ongoing. These current evaluations include data from additional active faults and updated geological data.

Exhibit B

6 4.3 Site History
Based on our review of readily available historic aerial photographs (EDR, 2016 and Google Earth, 2021) the site was vacant in until 1968 when the site had been developed as an automobile salvage yard. The aerial photographs reviewed are presented in Appendix A and are described briefly below:
1937: The site appears to be an undeveloped knoll surrounded by farmland. The Watsonville Slough appears as a channel that flows east of the project site. 1948: The western portion of the site appears to be developed as farmland. The Watsonville Slough remains contained within a channel.
1956: The western portion of the site, previously developed as farmland, appears to be abandoned. The Watsonville Slough remains contained within a channel. 1968: The site has been developed as an automobile salvage yard and is covered with multiple dilapidated automobiles. The Watsonville Slough remains contained within a channel. The lower lying areas to the north and northeast of the project site appear to be flood plains. The adjacent property south of the property has been developed with industrial warehouses.
1971: No significant changes observed to the property from the previous aerial photograph. The Watsonville Slough remains contained within a channel; however, it appears an earth embankment was constructed the low lying area north of the property creating a small reservoir.
1974: No significant changes observed to the property from the previous aerial photograph. The Watsonville Slough remains contained within a channel. The reservoir located to the north of the property appears to have drained. 1981: No significant changes observed to the property from the previous aerial photograph. The Watsonville Slough remains contained within a channel. 1987: No significant changes observed to the property from the previous aerial photograph. The Watsonville Slough remains contained within a channel. There appears to be some water collected within the reservoir to the north. 1993: No significant changes observed to the property from the previous aerial photograph. The reservoir to the north of the property appears to have been intentionally breached and the low lying areas to the east of the property appear to be filling with water. However, it still appears the Watsonville Slough remains contained within a channel.
2005: No significant changes observed to the property from the previous aerial photograph. The low lying areas to the north and east of the property appears to contain significant amounts of water. The southern and western portion of the Watsonville Slough remains contained within a channel; however, the eastern portion of the slough is overgrown and most likely intentionally breached.

Significant residential development is located to the north and west of the project site. Residential development in underway to the south of the property.

Exhibit B

7 2006: No significant changes observed to the property from the previous aerial photograph other than a reduction in the number of dilapidated automobiles stored on the project site. The southern portion of the Watsonville Slough remains contained within a channel.
2009: No significant changes observed to the property from the previous aerial photograph. The portion of the Watsonville Slough south of the property is now contained within a wider channel and appears as it does currently. 2010: No significant changes observed to the property from the previous aerial photograph.
2012: No significant changes observed to the property from the previous aerial photograph.
2016: No significant changes observed to the property from the previous aerial photograph other than an increase in the number of dilapidated automobiles stored on the project site. Additional residential development is evident on the surrounding southern properties.
2017: The automobile salvage yard has been removed from the project site. 2021: No significant changes observed to the property from the previous aerial photograph.

The automobile salvage yard remained until 2017 when the automobiles and associated structures were removed from the site, leaving the area denuded of vegetation. Currently vegetation has begun to establish on the project site.

4.4 Supplemental Subsurface Exploration & Laboratory Testing We performed a subsurface exploration to supplement the existing subsurface data, previously discussed. Our exploration consisted of four soil borings, performed on December 2nd and 3rd, 2021 and 4 cone penetration tests (CPT) performed on December 6 th, 2021. The borings were
performed with track mounted drilling equipment with hallow stem augers that extended between 36.5 and 51.5-feet below the ground surface. The CPTs were pushed with truck mounted equipment to refusal at depths between 60.0 and 68.0-feet below the ground surface.

The approximate CPT and boring locations are shown on Figure 2. Our Geologist logged the borings in the field and collected soil samples at select intervals for laboratory testing. Our subsurface exploration program is discussed in more detail in Appendices C and D. A Soil Classification Chart and the boring logs are presented on Figures C-1 through C-10. A description of the CPT and CPT logs are described on Figures D-1 through D-5. Additionally, to aid in determining the site classification, we performed shear wave velocity profiles in CPTs 2, 3, and 4 which are presented on Figure D-8.

Laboratory testing of select soil samples included determination of moisture content, dry density, unconfined compressive strength, triaxial compressive strength, direct shear, percent passing the #200 sieve, 1-D consolidation, and plasticity index. The results of the moisture content, dry density, unconfined compressive strength, triaxial strength, direct shear strength, and percent passing the #200 sieve are presented on the boring logs. The graphical results of the unconfined Exhibit B

8 compression, direct shear, triaxial shear strength, and 1-D consolidation tests are presented in Appendix C.

4.4 Subsurface Conditions and Groundwater
Based our supplemental geotechnical investigation and review of the existing geotechnical data, the site is underlain by 0 to 10-feet of highly expansive fill intermixed with minor to significant amounts of debris consisting of tires, automobile parts, trash, concrete, wood, etc. Very stiff, high plasticity clay underly the fill, with intermixed layers of very stiff to hard silts with variable amounts of sand, and medium dense to dense silty sands and poorly graded sands to the maximum depth explored.

A majority of the borings and CPTs performed by others were located at the higher elevations of the project site. However, most of the borings and CPTs performed during our supplemental subsurface exploration occurred at the lower elevations closer to the Watsonville Slough. These borings and CPTs did not encounter a significant amount of fill, as observed at the higher elevations. The supplemental subsurface exploration encountered up to 4-feet of gravelly fill overlying 15- to 25-feet of medium plasticity, medium stiff to stiff alluvial clay soils. Medium dense to very dense sand and silt underlie the clays to the maximum depth explored.

Laboratory testing to determine soil permeability is not within our current scope of work; however, the surficial soils consist of highly plastic clays. Typically, highly plastic clay soils exhibit very low infiltration rates and tend to hold and pond surface and subsurface water.

These soils are expected to have a low permeable with regarding to water infiltration in bioswales or detention basins.

Groundwater was observed during the previous subsurface exploration at a depth of about 30- feet, which corresponds to an elevation of about +0 feet. We observed groundwater at 30 and 35-feet below the ground surface during our supplemental subsurface exploration. Groundwater levels typically fluctuate with the seasons with higher levels anticipated during the winter months. Additionally, Cornerstone Earth Group’s asserts groundwater levels will be dependent on the water level of the adjacent Watsonville Slough, with a historic high groundwater level at an elevation of +11 feet above sea level.

5.0 GEOLOGIC HAZARDS EVALUATION
The principal geologic hazards which could potentially affect the project site include strong seismic shaking, lurching, slope instability and erosion. Other hazards, such as fault surface rupture, and liquefaction are not considered highly significant at the site. More detailed discussion of each geologic hazard considered, their anticipated impacts, and recommended mitigation measures are discussed below.

5.1 Fault Surface Rupture
Under the Alquist-Priolo Earthquake Fault Zoning Act, the California Geological Survey (CDMG)/California Geologic Survey (CGS) (1972, 2000) produced 1:24,000 scale maps showing all known active faults and defining zones within which special fault studies are required. The project site is not located with an Alquist-Priolo Earthquake Fault Zone, and the nearest known active fault to the site, the Zayante-Vergales, lies approximately 3.8-kilometers (2.4-miles) to the northeast. Therefore, we judge the risk of fault surface rupture at the site is low.

Exhibit B

9 Evaluation: No significant impact.

Recommendations: No mitigation measures are anticipated.

5.2 Seismic Shaking
The site will likely experience seismic ground shaking from future earthquakes in the San Francisco Bay Area. Earthquakes along several active faults in the region, as shown on Figure 4, could cause moderate to strong ground shaking at the site.

5.2.1 Deterministic Seismic Hazard Analysis
Deterministic Seismic Hazard Analysis (DSHA) predicts the intensity of earthquake ground motions by analyzing the characteristics of nearby faults, distance to the faults and rupture zones, earthquake magnitudes, earthquake durations, and site-specific geologic conditions. Empirical relations (Abrahamson, Silva & Kamai, Boore, Stewart, Seyhan & Atkinson, Campbell & Borzognia, and Chiou & Youngs, (2014)), for a weathered rock subsurface condition, were utilized to provide approximate estimates of median peak site accelerations. A summary of the principal active faults affecting the site, their closest distance, moment magnitude of characteristic earthquake, probable median accelerations and plus one standard deviation (+1), peak ground accelerations (PGA) for earthquakes on faults near the site are shown in Table A.

TABLE A

DETERMINISTIC PEAK GROUND ACCELERATION
Hillcrest Residential Subdivision
Watsonville, California
Fault
Fault
Distance1
Moment
Magnitude
1 Median
PGA1,2,3,4 +1 PGA4
Zayante-Vergales 3.8 km 6.9 0.44 g 0.76 g
San Andreas 8.1 km 8.0 0.42 g 0.71 g
Calaveras 8.5 km 6.9 0.33 g 0.57 g
Sargent 14.2 km 6.7 0.23 g 0.40 g
San Gregorio 22.7 km 7.4 0.21 g 0.37 g
Monterey Bay 23.7 km 7.2 0.19 g 0.33 g
Reference:

1. Google Earth (2020)

2. Abrahamson, Silva and Kamai (2014)

3. Boore, Stewart, Seyhan and Atkinson (2014)

4. Campbell and Borzognia (2014)

5. Chiou and Youngs (2014)

6. Values determined using Vs30 = 300 m/s for Site Class “D”

5.2.2 Probabilistic Seismic Hazard Analysis
Probabilistic Seismic Hazard Analysis (PSHA) analyzes all possible earthquake scenarios while incorporating the probability of each individual event to occur. The Exhibit B

10 probability is determined in the form of the recurrence interval, which is the average time for a specific earthquake acceleration to be exceeded. The design earthquake is not solely dependent on the fault with the closest distance to the site and/or the largest magnitude, but rather the probability of given seismic events occurring on both known and unknown faults.

We calculated the PGA for two separate probabilistic conditions, the 2% chance of exceedance in 50 years (2,475-year statistical return period) and the 10% chance of exceedance in 50 years (475-year statistical return period), utilizing the online USGS Unified Hazard Tool (USGS, 2019). The results of the probabilistic analyses are presented below in Table B.

TABLE B

PROBABILISTIC SEISMIC HAZARD ANALYSES
Hillcrest Residential Subdivision
Watsonville, California
Statistical
Return Period Magnitude PGA
2% in 50 years 2,475 years 7.2 1.01 g
10% in 50 years 475 years 7.0 0.58 g
Reference: USGS Unified Hazard Tool, accessed 2021
The potential for strong seismic shaking at the project site is high. Due to its close proximity, the San Andreas Fault (approximately 8.1-kilometers northeast) presents the highest potential for strong ground shaking. The most significant adverse impact associated with strong seismic shaking is potential damage to structures and improvements.

Evaluation: Less than significant with mitigation.

Recommendations: Minimum mitigation measures should include designing the structures and foundations in accordance with the most recent version of the California Building Code. Recommended seismic coefficients are provided in Section 6.2 of this report.

5.3 Liquefaction Potential and Related Impacts
Liquefaction refers to the sudden, temporary loss of soil shear strength during strong ground shaking. Liquefaction-related phenomena include liquefaction-induced settlement, flow failure, and lateral spreading. These phenomena can occur where there are saturated, loose, granular deposits. Recent advances in liquefaction studies indicate that liquefaction can occur in granular materials with a high, 35 to 50%, fines content (soil particles that pass the #200 sieve), provided the fines exhibit a plasticity less than 7. The previous subsurface explorations did not encounter loose, granular soils below the groundwater level that would be prone to liquefaction or other liquefaction related phenomena. However, the previous analysis was based on a PGA of 0.695 g. Per the current California Building Code, Liquefaction analysis should be based on the PGAM value, 1.13 g, determined per ASCE 7-16. Therefore, we re-analyzed the liquefaction potential Exhibit B

11 of site utilizing the CPT data from Cornerstone’s subsurface exploration and our supplemental subsurface exploration.

4.3.1 Liquefaction Evaluation
To evaluate soil liquefaction, the seismic energy from an earthquake is compared with the ability of the soil to resist pore pressure generation, known as the Cyclic Resistance Ratio (CRR). The earthquake energy is termed the cyclic stress ratio (CSR) and is a function of the maximum considered earthquake peak ground acceleration (PGA) and depth. Soil resistance to liquefaction is based on its relative density, and the amount and plasticity of the fines (silts and clays). The relative density of cohesionless soil is correlated with the Standard Penetration Test (SPT) blow count data measured in the field and corrected for hammer efficiency, overburden and percent fines to determine the (N1)60,CS value. Cone Penetration Test data, corrected for overburden, can also be utilized to determine the relative density of a soils and subsequently its resistance to liquefaction.

We analyzed the potential for liquefaction utilizing the data from our borings and the procedures outlined by Idriss and Boulanger (2008 & 2010), considering a magnitude

8.0 earthquake producing a PGA of 1.13 g, which corresponds to the PGAM value as defined in ASCE 7-16. The liquefaction analysis software Cliq (ver 3), developed by Geologismiki (2006), uses CPT data to evaluate liquefaction potential.

The liquefaction analysis performed based on the data obtained from the borings are broad as they rely on projecting the soil properties between samples. The analysis performed from the CPT data is more precise as continuous soil properties are measured throughout the depth explored. Therefore, more weight should be given to the liquefaction analysis based on CPT data.

The results of our liquefaction analyses, presented on Figures 6 through 26, indicate several localized soil layers, ranging from a few inches to a few feet thick, may liquefy under a strong seismic event. The areas where liquefaction is predicted appear to be at lower elevations where groundwater levels are higher within the soil column.

Additionally, the liquefiable layers do not appear to be continuous through the subsurface profile and are at least 15-feet below the finished grade.

4.3.2 Post Liquefaction Settlement
We predicted the amount of post liquefaction settlement utilizing the procedures outlined by Idriss and Boulanger (2008, 2010 & 2014), which indicate post liquefaction settlement can occur in soils that exhibit a factor of safety against liquefaction of 2.0 or less. Based on our analyses utilizing the data obtained from our borings, we predict up to 3.0-inches of total settlement and 1.5-inches of differential settlement over 30-feet. However, based on our analysis utilizing the data obtained from the CPTs, we predict up to 0.5-inches of total settlement and 0.25-inch of differential settlement, over 30-feet, may occur during the design seismic event.

As previously discussed, the data obtained from CPTs are significantly more precise than that of a boring. This is evident when comparing the liquefaction analyses between CPT 2 and Boring 2 performed during our supplemental subsurface exploration which were performed adjacent to each other. The results of the liquefaction analyses from Exhibit B

12 Boring 2 was 3.0-inches while the results from CPT 2 was 0.5-inches. Therefore, we weight the settlement results from the CPTs over the results for the borings and predict up to 1.0-inches of total settlement and 0.5-inches of differential settlement, over 30-feet, may occur during a strong seismic event.

Additionally, we utilized the procedures outlined by Ozocak and Sert (2010) to calculate the Liquefaction Potential Index (LPI), which is a gauge to determine if liquefiable layers will impact the ground surface. LPI is a function of the thickness, depth, and factor of safety against liquefaction in the individual layers within a soil column. The resulting LPI value corresponds to a relative potential for surface deformation impacting the ground surface. Typically, an LPI value of zero indicates the liquefiable layer will not impact the ground surface; while a value less than 5 has a low probability, value between 5 and 15 have a moderate probability and an LPI value greater than 15 have a high probability of surface impact. The results of our liquefaction analyses indicate LPI values up to 5.5, suggesting a low probability of liquefaction effects impacting the ground surface.

4.3.3 Lateral Spreading
Lateral spreading is the finite, lateral movement of gently to steeply sloping ground caused by a flow failure of underlying liquefying soil deposits. This phenomenon can also occur near bodies of water where a “free-face” exists along banks. As previously discussed, the Watsonville Slough borders the northern and eastern property lines of the proposed residential development. The general topography of project site consists of gentle sloping ground and 2:1 (H:V) slopes that incline towards the slough. We performed a lateral spreading analysis based on the proposed topography utilizing CLiq and are presented on Figures 12 through 26. The results of our analysis indicate up to

7.0-inches of lateral displacement may occur at the project site, predominately in the northwestern corner of the property. However, as previously discussed, the liquefiable layers we observed are not continuous, therefore we do not anticipate lateral spreading will be significant throughout the site.

Based on our calculations, as described above, it is our opinion that thin layers within the sand deposits may liquefy. Therefore, liquefaction and related settlement presents a low risk of damage to the planned improvements.

Evaluation: Less than significant with mitigation.

Recommendations: Foundation systems should be designed to withstand up to 1.0-inches of total and 0.5-inches of differential settlement, over 30-feet. Additionally, foundations should be designed to be rigid enough to span unsupported at least 7-inches. Foundation design criteria to mitigate the effects of liquefaction are provided in Section 6.3 should be followed.

5.4 Seismically-Induced Ground Settlement
Seismic ground shaking can induce settlement of unsaturated, loose, granular soils. Settlement occurs as the loose soil particles rearrange into a denser configuration when subjected to seismic ground shaking. Varying degrees of settlement can occur throughout a deposit, resulting in differential settlement of structures founded on such deposits. Loose granular soils were not observed in the near-surface soils; therefore, we judge the risk of seismically-induced settlement at the site is low.

Exhibit B

13 Evaluation: Less than significant.

Recommendations: No mitigation measures are anticipated.

5.5 Lurching and Ground Cracking
Lurching and associated ground cracking can occur during strong ground shaking generally along the tops of slopes where stiff soils are underlain by soft deposits or along steep slopes or channel banks. As previously discussed, slopes inclined up to 3:1 are proposed as part of the grading plan. As with all slopes located in seismically active areas, there is some risk of ground cracks forming along the crest during a strong seismic event. Therefore, we judge lurching and ground cracking is a low moderate geologic hazard at the project site.

Evaluation: Less than significant with mitigation.

Recommendations: Mitigation measures include following the setback guidelines outlined in the California Building Code. Per the CBC the bottom elevation of the proposed structural foundations structures should be setback at least 7- feet from any slope face.

5.6 Erosion
Sandy soils on moderate slopes or clayey soils on steep slopes are susceptible to erosion when exposed to concentrated water runoff. While the building sites are located on relatively level ground, the northern and eastern slopes are prone to erosion due to excess surface runoff and concentrated flow. Therefore, the risk of damage due to erosion is generally moderate to high.

Evaluation: Less than significant with mitigation.

Recommendations: Special engineering measures include designing a site drainage system to collect surface water and discharging it into an established storm drainage system. The project Civil Engineer is responsible for designing the site drainage system and, an erosion control plan could be developed prior to construction per the current guidelines of the California Stormwater Quality Association’s Best Management Practice Handbook.

5.7 Seiche and Tsunami
Seiche and tsunami are short duration earthquake-generated water waves in large, enclosed bodies of water and the open ocean, respectively. The extent and severity of a seiche or tsunami would be dependent upon ground motions and fault offset from nearby active faults.

The project site is located within 250-feet of the Watsonville Slough; however, the proposed residential subdivision will be constructed on top of a knoll at elevations between 50- to 70-feet above sea level, well above tsunami and seiche inundation elevations. Therefore, the risk of inundation by seiche or tsunami is low.

Evaluation: Less than significant.

Recommendations: No mitigation measures are anticipated.

5.8 Flooding
The residential subdivision is positioned at a relatively high elevation, approximately 50 to 70- feet above sea level. FEMA Flood Maps indicate the lower elevations of the property, immediately adjacent to the Watsonville Slough, are prone to flooding. However, these flood areas are more than 100-feet away from proposed improvements. Therefore, we judge Exhibit B

14 widespread flooding is not a significant hazard at the project site. However, whenever new development is performed, localized changes to the existing grades may result in localized flooding.

Evaluation: Less than significant with mitigation.

Recommendations: Careful attention should be paid to site grading and drainage design to minimize the effects of potential flooding. The Project Civil Engineer should consider the potential for localized ponding of water and smallscale flooding during the maximum credible rainfall event to design site grades and drainage systems.

5.9 Expansive Soil
Expansive soils will shrink and swell with fluctuations in moisture content and are capable of exerting significant expansion pressures on building foundations, interior floor slabs and exterior flatwork. Distress from expansive soil movement can include cracking of brittle wall coverings (stucco, plaster, drywall, etc.), racked door and/or window frames, and uneven floors and cracked slabs. Flatwork, pavements, and concrete slabs-on-grade are particularly vulnerable to distress due to their low bearing pressures.

Based on the subsurface exploration performed by Cornerstone Earth Group, highly plastic and expansive soils were observed on the property near the ground surface. Additionally, swell pressure tests were performed during the previous geotechnical investigation. The results of the swell testing indicate the expansive soils may exert 1,200 to 3,500 psf on the proposed improvements. Therefore, the risk of expansive soils impacting the project site is high.

Evaluation: Less than significant with mitigation.

Recommendations: Foundations should be designed to withstand uplift pressure and seasonal movement from soil swelling and shrinkage. Foundations may consist of shallow foundations, rigid mat slabs, or deeper drilled pier foundations. If drilled piers are used, include void boxes to prevent uplift pressures on grade beams, and extend piers well below the zone of significant moisture fluctuation.

At least 3-feet of expansive soils should be removed from the structural areas and replaced with select fill (sandy, low plasticity or lime treated clayey on-site soils) and for all shallow foundation options. The site grading and foundation design recommendations are outlined in Sections

6.1 and 6.3, respectively.

5.10 Settlement/Subsidence
Significant settlement can occur when new loads are placed at sites due to consolidation of soft compressible clays (i.e., Bay Mud) or compression of loose granular soils. Differential settlement may occur where structures span cut/fill transitions or other variable support conditions. Soft clayey soils were not observed during the previous subsurface exploration performed by Cornerstone Group. However, significant fills, up to 20-feet are planned as part of the residential subdivision which will exert significant stress on the underlying medium stiff to stiff clayey soils. These loads can cause the underlying clay layers to consolidate resulting in settlements at the ground surface. We utilized the available laboratory consolidation data performed by Cornerstone and the computer software Settle3D produced by Rocscience to Exhibit B

15 predict the amount of settlement that may occur over time. A graph indicating the predicted settlement, based on various fill heights, versus time is presented on Figure 27.

As with all project sites, the existing soil subsurface soil layers are variable and rarely uniform.

Variability within a soil layer may include layer thicknesses, grain size distribution, porosity, moisture content, stress history, among others. Therefore, as a general rule-of-thumb, predicted settlements for any project should be considered approximate to a degree of accuracy of 25%.

In addition to the fill placement causing the underlying soils to consolidate under the large fill loads, the fills over 5-feet in height will consolidate, resulting in surface settlements. A general range of fill settlement is approximately 0.5% to 1% of the fill height. As an example, a 15-foottall fill should settle 0.08- to 0.15-feet or 1.0- to 1.8-inches. This settlement typically occurs within 5- to 10-years after the fill has been placed.

Based on our settlement analysis and the anticipated fill heights we judge the risk of site settlement to the site is moderate; however, provided the foundation recommendations given in this report are followed, the risk of structural damage to the residential structures is low.

Hardscaped site improvements overlying the deeper fills, i.e. asphalt streets and parking areas, will experience some additional cracking and additional maintenance should be anticipated.

Evaluation: Less than significant with mitigation.

Recommendations: Fills should be prepared and compacted as outlined in the Site Grading section of this report. Additional maintenance may also be required to repair cracks that may appear in the proposed overlying hardscape. The recommendations provided in the foundation section of this report should be followed and designed to withstand the predicted settlements.

5.11 Slope Instability/Landsliding
Slope instability generally occurs on relatively steep slopes and/or on slopes underlain by weak materials. The project site has experienced previous landslides. As previously discussed, an approximate 10- to 15-foot tall 2:1 slope is located along the northern and eastern ends of the proposed subdivision. We understand this slope will be reduced in height to no greater than 5- feet in height with the addition of level pedestrian areas, rain gardens and tiered site retaining walls. Additionally, a new retaining wall up to 16-feet in height is proposed to bury on-site contaminated soils and create additional level space for recreational and parking space. The weight of this new fill may reduce the stability of the lower areas. Slope stability analysis was performed by Cornerstone Earth Group identified placing additional fill would reduce the overall slope stability.

We performed an updated slope stability analysis on five geologic cross sections generated from the current grading plan and utilizing the stability software SLIDE developed by Rocscience. The location of the location of the geologic cross sections are shown on the Site Plan, Figure 2 and are presented on Figures 28 through 32. The “Spencer” slope stability analysis method was utilized to analyze the cross sections.

Both short term (total stress) and long term (effective stress) static conditions were analyzed.

The short term condition models the site immediately after construction with excess pore pressures being generated within the soil mass and reducing soil strength. The long term condition models the site after the pore pressures have dissipated and the soil strength increases. For static slope stability analyses, a factor of safety against soil movement above 1.3 Exhibit B

16 and 1.5 is considered appropriate for short term and long term conditions, respectively. The results of our slope stability and yield coefficient analyses are presented on Figures 33 through

47. The failure planes shown represent the lowest factor of safety. The factors of safety of larger planes that encompass more of eth hillside were on the order of 2.0 or greater.

During a strong seismic event lateral displacement is anticipated for most slopes. Displacement may range from minor, less than an inch, to significant, several feet. Slope displacement is predicted based on the yield coefficient, ky, and the fundamental period of the slope. The yield coefficient is the seismic acceleration that produces a factor of safety of 1.0. We determined the yield coefficient for the five cross sections by inputting various seismic accelerations in our slope stability models and plotting the results. The procedures outlined by Bray and Macedo, 2019 were then used to predict the amount of deformation during a strong seismic event. Two deformation result values are determined in the analysis. The smaller value refers to a higher probability of occurrence during a strong seismic event while the larger of the numbers has a lower probability of occurrence. Additionally, the predicted deformations are more likely to occur in smaller amounts throughout the mass that add up to the predicted values rather than the predicted deformation occurring in one location within the mass. The results of the seismic slope displacement analysis are summarized below on Table C.

TABLE C
Slope Stability Results
Hillcrest Residential Subdivision
Watsonville, California
Static Conditions Seismic Conditions
Short Term F.S. Long Term F.S. ky Deformation 1
Section A-A 1.50 1.74 0.25 g ~3.5 to 7.5-in
Section B-B 2.12 2.39 0.36 g ~1.5 to 4.0-in
Section C-C 1.60 2.04 0.26 g ~3.5 to 7.5-in
Section D-D 2.12 2.50 0.29 g ~2.5 to 6.0-in
Section E-E 2.35 2.89 0.31 g ~3.5 to 7.5-in
Notes:

1. Predicted deformations are distributed throughout the landslide mass.

Evaluation: Less than significant with mitigation.

Recommendations: Structures should be setback from the slope crests as outlined in the California Building Code. Structures may be constructed within the setback zone provided they are supported on a deep foundation system as described in the Foundation section of this report.

6.0 CONCLUSIONS AND RECOMMENDATIONS
Based on our review of reference material and our supplemental subsurface exploration, we conclude that the proposed subdivision is feasible from a geotechnical perspective. The primary geotechnical issues to address in design of the project are providing adequate seismic design, expansive soils, liquefaction, protecting the residential subdivision from potential slope instability Exhibit B

17 and providing uniform foundation support. Specific recommendations and criteria to address these and other geotechnical project facets are presented in the following sections.

6.1 Site Preparation and Grading
Preliminary plans indicate significant site grading will be performed to develop the project site.

Site grading is expected to include excavating “cuts” up to roughly 15-feet and placing fills up to 20-feet to create building pads, new streets to allow site access, and constructing new pedestrian paths. The grading recommendations presented below are appropriate for construction in the late spring through fall months. From winter through the early spring months, on-site soils may be saturated due to rainfall and may be difficult to compact without drying by aeration or the addition of lime and/or cement (or a similar product) to dry the soils. Site preparation and grading should conform to the recommendations and criteria outlined below.

General recommendations for wintertime construction are provided later in this report.

6.1.1 Surface Preparation
Clear all trees, brush, roots, over-sized debris, and organic material from areas to be graded. Trees and large shrubs that will be removed (in structural areas) must also include removal of stumps, root balls and roots larger than two inches in diameter.

Excavated areas (i.e., old fills and stump removal) should be restored with properly moisture conditioned and compacted fill as described in the following sections. Any loose soil or rock at subgrade will need to be excavated to expose firm natural soils or bedrock. Debris, rocks larger than six inches and vegetation are not suitable for structural fill and should be removed from the site. Alternatively, vegetation strippings may be used in landscape areas. Surface preparation should extend at least 5-feet beyond proposed structures and 3-feet beyond pavement areas.

6.1.2 Materials
Based on the previous subsurface explorations and our supplemental subsurface exploration, onsite granular soils and the clayey soils located at lower elevations which exhibit low to medium plasticity are suitable for use as fill, provided they meet the criteria for onsite and imported fill material. As previously discussed, highly plastic and expansive soils were also observed on the project site. These plastic and expansive soils are not suitable for fill in structural areas, unless they have been lime/cement treated. Alternatively, highly expansive soils may be buried and encased with at least 3- feet of non-expansive and/or lime treated soils.

Onsite and import soils shall consist of soil and rock mixtures that: (1) are free of organic material, (2) have a Liquid Limit less than 40 and a Plasticity Index of less than 20, (3) have a maximum particle size of 6 inches, and (4) have more than 50% retained on the No. 200 sieve. Any imported fill material shall be tested and inspected by the project geotechnical engineer to determine its suitability for use as fill material.

6.1.3 Lime Treatment
As previously discussed, expansive soils were encountered on the project site. Lime treatment chemically alters the clay soils resulting in a reduction in their inherent plasticity, a significant reduction in their shrink/swell potential, an improvement to its workability (i.e., compaction), and an increase of its shear strength. If soil treatment is utilized during site grading, in structural areas we recommend at least 5% high calcium Exhibit B

18 lime should be thoroughly mixed to the surficial soils (utilizing a 115 pcf soil density) resulting in a soil pH of at least 12.4 to promote the chemical reaction, to be confirmed with laboratory testing. The depth of treatment in building areas should extend at least 36-inches below the building pad subgrade. The depth of treatment may be reduced to 18-inches in areas where flatwork is proposed. Soil treatment should extend at least 5- feet beyond the area of work where possible. Treated soils should then be compacted to at least 90% relative compaction in structural areas and 95% relative compaction in areas subject to vehicular loads.

6.1.4 Compacted Fill
On-site fill, backfill, and scarified subgrades (8-inches deep) should be conditioned to within 3% of the optimum moisture content. Properly moisture conditioned and cured onsite materials should subsequently be placed in loose horizontal lifts of 8 inches thick or less, and uniformly compacted to a minimum of 90% R.C. Expansive soils should be further moisture conditioned to at least 3% over the optimum moisture content and compacted to between 88 and 92% R.C. To reduce the settlement potential, the compaction of fills taller than 5-feet should be increased to 95% R.C.

Relative compaction, maximum dry density, and optimum moisture content of fill materials should be determined in accordance with ASTM Test Method D 1557, "Moisture-Density Relations of Soils and Soil-Aggregate Mixtures Using a 10-lb.

Rammer and 18-in. Drop". Relative compaction should increase to 95% in the upper foot where asphalt pavement is planned.

6.1.5 Slopes
Based on our slope stability analyses and the relatively short fill slopes proposed, roughly 5-feet, we judge a maximum cut and fill slope inclination of 2:1 is appropriate.

Although not currently planned, intermediate terraces and surface drainage should be constructed on fill slopes greater than 20-feet in height.

6.1.6 Excavations
The subsurface conditions generally consist of medium stiff to stiff, highly plastic clay. As previously discussed, the site was previously used as an auto salvage yard for over 50- years. Test pits performed by others encountered significant automobile parts including tires, sheet metal and other debris. Although we anticipate the soil will be easily excavated with standard equipment (i.e., excavators, dozers, scrapers, etc.), the contractor should anticipate encountering some large debris that may impact the excavation conditions.

Soils in excavations appear to be Cal-OSHA “Type C” and excavations having a depth of five feet or more, and will be entered by workers must be sloped, braced, or shored in accordance with current Cal-OSHA regulations. All excavations can result in collapse of sidewalls, slopes and/or bottom that could result in injury or death of workers. Therefore, excavations should be evaluated by the Contractor’s safety officer and designated competent person prior to workers entering in accordance with current Cal-OSHA regulations.

Exhibit B

19 6.2 Seismic Design
The project site is located in a seismically active area. Therefore, structures should be designed in conformance to the seismic provisions of the most recent (2019) California Building Code (CBC). However, since the goal of the building code is protection of life safety, some structural damage may still occur during strong ground shaking. Based our supplemental subsurface exploration it is our opinion the site may be classified as a “Stiff Soil Site Class D” site.

Per ASCE 7-16 Section. 11.4.8, a Site-Specific Ground Motion Hazard Analysis shall be performed in accordance with ASCE 7-16 Section 21.2 on sites classified as a “Site Class D” if the S1 value is greater than or equal to 0.2 g. The S1 value for the site conditions and location is 0.94 g; therefore, we performed a Site-Specific Ground Motion Hazard Analysis as presented in Appendix E and the results are presented below on Table D.

TABLE D
ASCE 7-16 SEISMIC PARAMETERS
Hillcrest Residential Subdivision
Watsonville, California
Factor Name Coefficient
ASCE 7-16
Site Specific Value
Site Class1 SA,B,C,D,E, or F SD
Spectral Response (short) SMS 1.98 g
Spectral Response (1-sec) SM1 1.89 g
Design Spectral Response (short) SDS 1.32 g
Design Spectral Response (1-sec) SD1 1.26 g
MCEG
2 PGA adjusted for Site Class PGAM 1.13 g
Notes:

1. Site Class D Description: Stiff soil profile with shear wave velocities between 600 and 1,200 ft/sec, standard blow counts between 15 and 50 blows per foot, and undrained shear strength between 1,000 and 2,000 psf.

2. Maximum Considered Earthquake Geometric Mean.

6.3 Foundation Design
As previously discussed, the upper elevations of the project site are blanketed in approximately 10-feet of highly plastic and expansive clay. These soils are problematic to traditional shallow foundation systems. These foundations are typically lightly loaded and prone to uplift pressures which can result in cracks in the foundation and structure. Therefore, traditional shallow foundations are not recommended without other soil improvements. Alternative foundation options may be considered that typically exhibit improved performance in expansive soils.

Various acceptable foundation options are presented below along with design criteria.

Exhibit B

20 6.3.1 Shallow Foundations
Based on the subsurface soil conditions, it is our opinion the planned residences may be supported on a shallow foundation system. However, due to the presence of surficial expansive soils, shallow foundations should be designed to withstand seasonal movement. For structures with raised floors, shallow foundation excavations should be designed to be at least 36-inches deep to extend at least 3-feet below the ground surface. The over-excavation may then be backfilled with non-expansive soil, as described above, or with cement slurry/control density fill (CDF).

Alternatively, shallow foundations may be constructed on at least 36 inches of select fill or lime treated soils as described above without the need for over-excavated or deepened foundation excavations. Shallow foundations located adjacent to slopes should be deepened as necessary to allow at least 7-feet of horizontal confinement between the bottom of the footing and slope face.

Reinforced concrete mat slabs-on-grade may be utilized to support the proposed residential structures. However, mat slab foundations must bear on at least 3-feet of lime treated soils or imported non expansive fill soil. Shallow and mat slab foundation design criteria are presented on Table E below.

Exhibit B

21 TABLE E

SHALLOW FOUNDATION & MAT SLAB DEIGN CRITERIA
Hillcrest Residential Subdivision
Watsonville, California
Shallow Foundation
Minimum embedment below existing grade: 24-inches
Minimum width
1 :

One-story: 12 inches
Two-story: 15-inches
Allowable bearing pressure2:

Deepened foundations: 1,000 psf
Imported fill: 2,500 psf
Lime treated soil” 3,500 psf
Base friction coefficient:

Deepened foundations: 0.30
Lime treated or imported fill: 0.35
Lateral passive resistance2,3:

Deepened foundations: 300 pcf
Lime treated or imported fill: 400 pcf
Reinforced Concrete Mat Slab-on-Grade
Minimum thickness: 6 inches
Turndown edge depth: 18-inches
Modulus of subgrade reaction, ks:

Lime treated or imported fill: 125 pci
Maximum unsupported interior span4: 20 feet
Maximum unsupported edge/corner span4: 10 feet
Base friction: 0.35
Notes:

1. Design shallow foundations to similar bearing pressures, i.e., size footing widths to maintain uniform bearing loads. Maintain above optimum moisture contents until concrete slabs are completed.

2. May increase design values by 1/3 for total design loads including wind and seismic.

3. Neglect upper 6-inches unless confined by concrete. Equivalent Fluid Pressure, not to exceed 3,500 psf.

4. Assumes rigid slab behavior with idealized fixed conditions.

Exhibit B

22 6.3.2 Post Tensioned Reinforced Concrete Slab-on-Grade The proposed residential structures may be supported on post tensioned reinforced concrete slabs-on-grade (PT-slabs) bearing on either native soils, prepared as described previously; lime treated soils; or imported fill soil. PT-slabs should be designed and constructed per the most recent Post-Tension Concrete Institute specifications and the design criteria presented below on Table F. It should be noted that post-tensioned slabs on the existing soils will likely have seasonal building heave and settlement as the underlying soil react to seasonal changes in the moisture content of the soils.

Maintenance of cracks in the exterior walkways and cosmetic cracks with the structures should be expected.

TABLE F

PT-SLAB DEIGN CRITERIA
Hillcrest Residential Subdivision
Watsonville, California
Modulus of subgrade reaction, ks:

Untreated soil: 75 pci
Lime treated or imported soil: 125 pci
Minimum thickness at edge of slab:1,2 12 inches
Edge moisture variation (em) – Center Lift 12 feet
Edge moisture variation (em) – Edge Lift 6 feet
Differential soil movement (ym) – Center Lift 1.0 inches Differential soil movement (ym) – Edge Lift 2.0 inches
Notes:

1. Actual thickness, load distribution, and unsupported spans must be determined by Structural Engineer to reduce deformations to acceptable levels.

2. Assumes rigid slab behavior with idealized fixed end conditions.

6.4.3 Deep Foundation Design
A drilled pier foundation system extending through the surficial expansive soils and embedding into the underlying stiff soils may also be utilized to support the proposed residential structures. Deep foundations should be spaced more than three pier/pile diameters apart from each other and interconnected with gradebeams. Gradebeams should be constructed on 4-inch-thick cardboard void boxes to prevent uplift pressure from underlying expansive soils. To avoid the use of void boxes the grade beams should be constructed on at least 3-feet of lime treated soil or imported non-expansive fill.

Alternatively, gradebeams and drilled piers may be designed to withstand at least 4,500 psf of uplift pressure. Additionally, “mushrooming” of the top of the drilled piers should be prevented to reduce additional uplift pressure. Sonotubes should be utilized in the upper 3- feet if “mushrooming” of the pier tops occurs. Drilled piers may be designed utilizing the parameters outlined on Table G below.

Exhibit B

23 TABLE G

DRILLED PIER FOUNDATION DESIGN CRITERIA
Hillcrest Residential Subdivision
Watsonville, California
Minimum diameter: 16-inches
Skin friction1:
0 to 3-feet Neglect
3 to 10-feet 300 psf
10 to 20-feet 750 psf
20 to 30-feet 1,000 psf
Lateral resistance2,3:
0 to 3-feet Neglect
3 to 10-feet 300 pcf
10 to 20-feet 400 psf
20 to 30-feet 500 psf
Notes:

1.) Uplift capacity is equal to 80% of the downward skin resistance.

2.) Apply passive resistance over two pier diameters.

3.) Lateral pile reduction factors, “P-multipliers” should be included in design when foundations are within groups. P-multipliers are dependent on pier/pile spacing (s) and diameter (d). The following equations should be utilized to calculate the pmultiplier:
a. First (Lead) Row Piles: Pm = 0.26*ln(s/d) + 0.50 ≤ 1.0 b. Second Row Piles: Pm = 0.52*ln(s/d) ≤ 1.0
c. Third Row or Higher Piles: Pm = 0.60*ln(s/d) - 0.25 ≤ 1.0 Alternate deep foundation options are available including helical piles. Helical piles are slender (4-inches or less in diameter) steel pipes or shafts that have two or more steel circular plates welded near the tip. The piles are screwed into the ground and extend to a design depth and capacity that is determined in the field during installation. Based on the subsurface conditions we anticipate helical piles should be able to obtain 15 to 20-kips at depths around of 15-feet below the ground surface. Helical piles are typically interconnected with gradebeams and spaced 5 to 10-feet on center. Helical piles provide negligible lateral passive resistance due to the slender nature of the steel rods. Therefore, lateral passive resistance may be obtained from the grade beams. If helical piles are determined to be an economic option, we should be contacted to assist with the design of the foundation system.

6.5 Retaining Wall Design
We anticipate retaining walls up to 16-feet in height will be required to retain cuts and fills needed to create level pedestrian paths, soil remediation areas, and rain gardens to the north and east of the proposed residences. The 16-foot-tall retaining wall will be located on the northern end of the property and will support the soil remediation soil, while 5-foot tall, tiered retaining walls will be constructed on the northern and eastern ends of the property. The tiered Exhibit B

24 walls will be separated by a level pedestrian path with the upper wall supporting a roughly 5-foot tall 2:1 slope. We anticipate these walls will be free to rotate at the top, therefore may be designed with “unrestrained” soil lateral earth pressures.

The current plan is to construct the level pedestrian pathway by filling to raise grades. While typical reinforced concrete or concrete masonry unit (CMU) retaining walls may be utilized to retain the fill, it is our opinion mechanically stabilized earth (MSE) retaining walls with a stacked block face will be more cost effective. MSE walls are constructed by placing layers of compacted fill with interbedded geogrids every 18- to 24-inches. The geogrids are connected to concrete blocks located at the wall face. These walls do not require concrete or steel reinforcement and are built in conjunction with fill placement. Retaining wall design criteria is shown on Table H below.

TABLE H

RETAINING WALL DESIGN CRITERIA
Hillcrest Residential Subdivision
Watsonville, California
Foundations
See Table E or G
Unrestrained Earth Pressure
1,2
Level Ground: 40 pcf
2:1 Slope: 60 pcf
MSE Wall Design
Unit Weight,  Cohesion, c Friction, 
Reinforced Soil: 120 pcf N/A 30⁰
Retained Soil: 110 pcf N/A 30⁰
Foundation Soil: 110 pcf 500 psf 30⁰
Seismic Surcharge3 10 x H psf
Notes:

1. Interpolate earth pressures for intermediate slopes.

2. Equivalent fluid pressure.

3. Rectangular distribution. The factor of safety for short-term seismic conditions can be reduced to 1.1 or greater. “H” = wall height.

Drainage shall be provided for all retaining walls taller than 3-feet consisting of either ¾-inch crushed rock, wrapped within filter fabric, or Caltrans Class 2 permeable material. The seepage should be collected in a 4-inch perforated PVC drain line at the base of the wall. The permeable material shall extend at least 12 inches from the back of the wall and be continuous from the bottom of the wall to within 12 inches of the ground surface. Drainage panels, such as Mirifi 100N, may be utilized. If drainage panels are utilized, the perforated pipe locate at the base of the retaining wall should be surrounded in ¾-inch drain rock and wrapped in filter fabric. A schematic retaining wall drainage detail is presented on Figure 48. All retaining wall backfill shall be with non-expansive soil.

Exhibit B

25 Seepage collected in the drain line should be conveyed off-site by gravity in closed pipe to the storm drainage system. The pipe shall have a minimum slope of 1 percent to drain. To maintain the wall drainage system, clean outs shall be installed at the upstream end and at all major changes in direction. Water proofing of any below grade residential walls should be designed by the Architect to prevent moisture infiltration through the wall into living spaces.

6.6 Site Drainage Considerations
Careful consideration should be given to design of new finished grades at the site to ensure positive drainage. We recommend that the building areas be raised slightly and that the adjoining landscaped areas be sloped downward at 5 percent for a distance of at least 5-feet from the perimeter of building foundations. Where hard surfaces, such as concrete or asphalt adjoin foundations, slope these surfaces at least 0.10-feet in the first 5-feet (2 percent). Roof gutter downspouts may discharge onto the pavements but should not discharge onto any landscaped areas. Provide area drains for landscape planters adjacent to buildings and parking areas and collect downspout discharges into a tight pipe collection system. The tight pipe system should discharge at an appropriate location unlikely to result in adverse erosion, preferably into an established municipal storm drain system. If it is not possible to discharge into the City’s storm drain system, collected water should be discharged near the base of the slope and spread laterally via dissipators.

6.7 Concrete Slabs-On-Grade
Where concrete slabs are needed, we recommend they be at least 5-inches thick and reinforced with steel bars (not wire mesh). Additionally, contraction joints should be incorporated in the concrete slab in both directions, no greater than 10 feet on center and the reinforcing bars should extend through these control joints. Some seasonal movement should be expected due to the expansive nature of the soils.

We generally recommend that interior concrete slabs should be placed on a moist subgrade as previously described above. To reduce (i.e., improve) interior moisture conditions, a minimum of four inches of clean, free draining, ¾-inch angular gravel should be placed beneath interior concrete slabs to form a capillary moisture break. The drain rock must be placed on a properly moisture conditioned and compacted subgrade that has been approved by the Geotechnical Engineer. A 15-mil, or thicker, vapor barrier should be placed over the compacted drain rock. The vapor barrier shall meet the ASTM E 1745 Class A requirements and be installed per ASTM E 1643. Eliminating the capillary moisture break and/or plastic visqueen may result in excess moisture intrusion through the floor slabs resulting in poor performance of floor coverings, mold growth, or other adverse conditions.

The industry standard approach to floor slab moisture control, as discussed above, does not assure that floor slab moisture transmission rates will meet the building use requirements or that indoor humidity levels will be low enough to inhibit mold growth. Building design, construction, and intended use have a significant role in moisture problems and should be carefully evaluated by the owner, designer, and builder in order to meet the project requirements.

6.8 Underground Utilities
Based on previous subsurface explorations performed by others, onsite soils are “Type C” per Cal-OSHA guidelines and will be prone to caving and raveling in open excavations. The Contractor is responsible for site safety and should provide adequate shoring as needed.

Exhibit B

26 Bedding materials for utility pipes should be non-corrosive sand with 90 to 100 percent of particles passing the No. 4 sieve and no more than 15 percent finer than the No. 200 sieve.

Provide the minimum bedding beneath the pipe in accordance with the manufacturer’s recommendation, typically 3 to 6-inches. Utility excavations should be backfilled with select fill per criteria discussed previously and compacted to a minimum of 90 percent relative compaction. In pavement areas, relative compaction should be increased to a minimum of 95 percent in the upper 12-inches.

6.9 Asphalt Concrete Pavements
We have calculated preliminary pavement sections in accordance with Caltrans procedures for flexible pavement design using an assumed R-value of 5. The R-value of the subgrade soils may be increased to 40 provided they are lime treated. We have provided a range of Traffic Indices (TI) from 4 to 7 depending on the expected traffic loads for a twenty-year design life. In general, areas expected to experience loading from heavy vehicles (such as fire lanes, loading dock access roads, trash enclosures, etc.) should be designed using the higher Traffic Index, while parking areas and other lightly-loaded areas can utilize a thinner pavement section based on the lower Traffic Index. Preliminary recommended pavement sections are shown in Table H; these should be verified on the basis of supplemental laboratory testing.

TABLE I

PAVEMENT DESIGN CRITERIA
Hillcrest Residential Subdivision
Watsonville, California
Untreated
Subgrade
Lime Treated
Subgrade
T.I.

Asphalt
Concrete
Aggregate
Baserock
Aggregate
Baserock
Driveways & parking stalls 4.0 2.5-inches 8.0-inches 6.0-inches Light truck traffic 5.0 3.0-inches 10.0-inches 6.0-inches Moderate truck traffic 6.0 3.5-inches 13.0-inches 6.0-inches Heavy truck traffic 7.0 4.0-inches 16.0-inches 8.0-inches Subgrade preparation for asphalt-paved areas should be performed in accordance with the grading recommendations of this report. The base rock should consist of compacted Class 2 Aggregate Base (Caltrans, 2018), be conditioned to near optimum moisture content, placed in lifts no more than six inches thick, and compacted to achieve at least 95 percent relative compaction and a non-yielding surface when proof-rolled with heavy construction equipment. The subgrade should also be maintained at near-optimum moisture content prior to placement of aggregate base rock. Areas of soft or saturated soils encountered during construction should be excavated and replaced with properly moisture conditioned fill or aggregate base.

Exhibit B

27 7.0 SUPPLEMENTAL GEOTECHNICAL SERVICES
We must review the plans and specifications for the project when they are nearing completion to confirm that the intent of our geotechnical recommendations has been incorporated and provide supplemental recommendations, if needed. During construction, we must observe and test site grading, foundation excavations for the structures and associated improvements to confirm that the soils encountered during construction are consistent with the design criteria.

8.0 LIMITATIONS
We believe this report has been prepared in accordance with generally accepted geotechnical engineering practices in the greater Santa Cruz area at the time the report was prepared. This report has been prepared for the exclusive use of California Sunshine Subdivision, LLC and/or their assignees specifically for this project. No other warranty, expressed or implied, is made. Our evaluations and recommendations are based on the data performed by others and reviewed by us and our experience with soils in this geographic area.

Our approved scope of work did not include an environmental assessment of the site.

Consequently, this report does not contain information regarding the presence or absence of toxic or hazardous wastes.

The evaluations and recommendations do not reflect variations in subsurface conditions that may exist between boring locations or in unexplored portions of the site. Should such variations become apparent during construction, the general recommendations contained within this report will not be considered valid unless MPEG is given the opportunity to review such variations and revise or modify our recommendations accordingly. No changes may be made to the general recommendations contained herein without the written consent of MPEG.

We recommend that this report, in its entirety, be made available to project team members, contractors, and subcontractors for informational purposes and discussion. We intend that the information presented within this report be interpreted only within the context of the report as a whole. No portion of this report should be separated from the rest of the information presented herein. No single portion of this report shall be considered valid unless it is presented with and as an integral part of the entire report.

Exhibit B

28 9.0 LIST OF REFERENCES
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Aagard, B.T. et al (2016), “Earthquake Outlook for the San Francisco Bay Region 2014-2043”, United States Geological Survey Fact Sheet 2016-3020, Version 1.1, Revised August 2016.

American Society of Civil Engineers, “Minimum Design Loads for Buildings and Other Structures,” (ASCE 7), 2010.

American Society for Testing and Materials, “2016 Annual book of ASTM Standards, Section 4, Construction, Volume 4.08, Soil and Rock; Dimension Stone; Geosynthetics,” ASTM, Philadelphia, 2019.

Association of Bay Area Governments (ABAG), Geographic Information System, http://quake.abag.ca.gov/mitigation/, 2017.

Boore, Stewart, Seyhan and Atkinson, “NGA-West2 Equations for Predicting PGA, PGV and 5% Damped PSA for Shallow Crustal Earthquakes,” Earthquake Engineering Research Institute, Spectra Vol 30 Issue 3, August 2014.

Bray, J.D. & Closure to “Procedure for Estimating Shear-Induced Seismic Slope Displacement for Shallow Crustal Earthquakes,” Jonathan D. Bray and Jorge Macedo, Journal of Geotechnical and Geoenvironmental Engineering, ASCE, V. 145, 2019
California Building Code, 2019 Edition, California Building Standards Commission, Sacramento, California.

California Geologic Survey, CGS Regulatory Maps Geo Application, “Earthquake Zones of Required Investigation” https://maps.conservation.ca.gov/cgs/EQZApp/app/, 2020.

California Department of Conservation, Division of Mines and Geology (2000), “Digital Images of Official Maps of Alquist-Priolo Earthquake Fault Zones of California, Central Coast Region”, DMG CD 2000-004.

California Department of Transportation (Caltrans), “Acceleration Response Spectra (ARS) Online version 2.3.06” http://dap3.dot.ca.gov/ARS_Online/index.php, accessed August 16, 2017.

California Department of Transportation (Caltrans), “Standard Specifications,” 2015.

Campbell and Borzognia, “NGA-West2 Ground Motion Model for the Average Horizontal Components of PGA, GV and 5% Damped Linea Acceleration Response Spectra,” Earthquake Engineering Research Institute, Spectra Vol 30 Issue 3, August 2014.

Chiou and Youngs, “Update of the Chiou and Youngs NGA Model for the Averafe Horizontal Component of Peak Ground Motion and Response Spectra,” Earthquake Engineering Research Institute, Spectra Vol 30 Issue 3, August 2014.

Exhibit B

29 County of Los Angeles, “Review of Geotechnical Reports Addressing Liquefaction,” February 24, 2009.

EDR Aerial Photo Decade Package, “Ohlone Wrecking Yard, 511 Ohlone Parkway, Watsonville, California,” June 5, 2016
Field, E.H., Biasi, G.P., Bird, P., Dawson, T.E., Felzer, K.R., Jackson, D.D., Johnson, K.M., Jordan, T.H., Madden, C., Michael, A.J., Milner, K.R., Page, M.T., Parsons, T., Powers, P.M., Shaw, B.E., Thatcher, W.R., Weldon, R.J., II, and Zeng, Y., 2013, Uniform California earthquake rupture forecast, version 3 (UCERF3) – The time-independent model: U.S. Open-File Report 2013–1165, 97 p., California Geological Survey Special Report 228, and Southern California Earthquake Center Publication 1792, http://pubs.usgs.gov/of/2013/1165/.

Herzog Geotechnical (2005), “Geotechnical Investigation, Trader Joe’s, 7514-7518 Redwood Boulevard, Novato, California”, Project No. 1158-01-04, dated July 19, 2005.

Idriss, I.M. & Boulanger, R.W. “Soil Liquefaction during Earthquakes”, Earthquake Engineering Research Institute Monograph 12, 2008
Idriss, I.M. & Boulanger, R.W. “SPT-Based Liquefaction Triggering Procedures” Department of Civil and Environmental Engineering, College of Engineering, University of California at Davis, UCD/GCM-10/02, December 2010.

Miller Pacific Engineering Group, “Geotechnical Peer Review Sunshine Vista Residential Development Watsonville, California,” June 10, 2020.

Ozocak, A & Sert, S., “Evaluation of Liquefaction Risk by a revised LPI approach,” 2nd International Symposium on Cone Penetration Testing, Huntington Beach, CA, USA. Volume 2&3: Technical Papers, Session 3: Applications, Paper No. 3-30, 2010.

Occupational Safety and Health Administration (OSHA)(2005), Title 29 Code of Federal Regulations, Part 1926, 2005.

Structural Engineers Association of California (SEAOC), “Seismic Design Map Tool,” https://seismicmaps.org/, accessed November 2020.

United States Environmental Protection Agency (USEPA)(2017), EPA Map of Radon Zones in California, http://www.epa.gov/radon/states/california.html, accessed August 15, 2017.

United States Geologic Survey, “Geologic Map of Santa Cruz County,” Brabb, E., Graham, S., Wentworth, C., Knifong, D., Graymer, R. & Bussenbach, J., Open File Report 97-489, 1997.

United States Geological Survey (2003), “Summary of Earthquake Probabilities in the San Francisco Bay Region, 2002 to 2032,” The 2003 Working Group on California Earthquake Probabilities, 2003.

United States Geological Survey (2008), “The Uniform California Earthquake Rupture Forecast, Version 2,” The 2007 Working Group on California Earthquake Probabilities, Open File Report 2007-1437, 2008.

Exhibit B

Section A-A
Section C-C EB-1 CPT-1 A5T9 A5T4 A5T3 A5T5 B-10 B-9 B-5 B-3 B-14 B-12B-11 B-13 B-7 B-1 B-2 B-8 EB-6 EB-5 EB-4 B-4 EB-7 EB-3 B-6 CPT-7 CPT-2 EB-2 CPT-8 CPT-10 CPT-11 CPT-6 CPT-5 CPT-4 CPT-9 CPT-3 A5T8 A5T7 A5T6 A3T1 A4T1 A8T4 A8T5 A8T6 A8T7 A8T2 A8T3 EB-8 A8T1 A2T1 A2T2 A2T3 A1T2 A1T1 A1T3 A1T4 A2T4A2T5 A2T17 A2T6 A1T5 A2T7 A2T8 A1T6 A2T9 A1T7 A1T8 A2T10 A2T11 A2T16 A2T15 A2T14 A2T13 A2T12 A1T9 A1T10 A1T11 A1T12 A1T12 A1T12 A5T10 A5T11 A5T2 A5T12 A5T1 A5T1B A5T1A A1T13 T8 T1 T10 T11 T3 T4 T7 T5 T2 T6 B-1 B-3 B-2 CPT-03 CPT-02 CPT-01 CPT-03 B-4 Section B-B Section D-D
Section E-E Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.001 1/12/2022 SITE PLAN BSP 2 FILE: 3317.001 SPlan.dwg SCALE 0 50 100 200 FEET NORTH REFERENCE: Ramsey Civil Engineering Inc. "Hillcrest Subdivision, Rough Grading and Site Drainage Plan," December 14, 2020 LEGEND: Boring completed by MPEG, 2021 CPT completed by MPEG, 2021 Boring completed by Butano, 2016 Trench completed by Butano, 2016 Boring completed by Cornerstone, 2016 CPT completed by Cornerstone, 2016 Test pit completed by Cornerstone, 2016 Exhibit B

B-2
CPT-02
EB-2 Section A-A 1"=30'
CPT-2
B-10
B-1
B-3
CPT-03 Existing Ground Surface Rain Garden 506070403020100 -10 -20 -30 -40 -50 ELEVATION, ft FILL CLAY Silty SAND Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.001 1/12/2022 SECTION A-ABSP 28 FILE: 3317.001 SPlan.dwg SCALE 0 15 30 60 FEET Exhibit B

B-3
B-5 & CPT-2 Rain Garden CLAY Silty SAND Existing Ground Surface 506070403020100 -10 -20 ELEVATION, ft Section B-B 1"=30' Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.01 1/12/22 SECTION B-BBSP 29 FILE: 3317.001 SPlan.dwg SCALE 0 15 30 60 FEET Exhibit B

5060403020100 -10 -20
ELEVATION, ft -30 -40 -50 Section C-C 1"=30'
CPT-1
CPT-3 -60 FILL CLAY Silty SAND Rain Garden Existing Ground Surface Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.01 1/12/22 SECTION C-CBSP 30 FILE: 3317.001 SPlan.dwg SCALE 0 15 30 60 FEET Exhibit B

CPT-1
EB-3 & CPT-3 CLAY Silty SAND Section D-D 1"=30' Existing Ground Surface Rain Garden 5060403020100 -10 -20 ELEVATION, ft 70 -30 Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.01 1/12/22 SECTION D-DBSP 31 FILE: 3317.001 SPlan.dwg SCALE 0 15 30 60 FEET Exhibit B

5060403020100 -10 -20
ELEVATION, ft 70
B-3
B-4 CLAY Silty SAND Existing Ground Surface Section E-E 1"=30' Drawn Checked Project No. Date: FIGURE 504 Redwood Blvd. Suite 220 Novato, CA 94947 T 415 / 382-3444 F 415 / 382-3450 www.millerpac.com A CALIFORNIA CORPORATION, © 2016, ALL RIGHTS RESERVED Hillcrest Residential Subdivsion Watsonville, California 3317.01 1/12/22 SECTION E-EBSP 32 FILE: 3317.001 SPlan.dwg SCALE 0 15 30 60 FEET Exhibit B

MlllER PACIFIC
INGINllHING GROUP

RETAINING WALL, STABILITY & SETTLEMENT CALCULATIONS
Sunshine Vista Residential Development
Watsonville, California
Proj. No. 1680.023
June 4, 2021
Prepared for: COM/Real Estate Company, Inc.
444 Airport Blvd., Suite 203
Watsonville, California 95076
Attn: Mr. John Fry
Prepared by:

MILLER PACIFIC ENGINEERING GROUP
Benjamin S. Pappas
Geotechnical Engineer No. 2786
(Expires 9/30/22)

REVIEWED BY
Scott A. Stephens
Geotechnical Engineer No. 2398
(Expires 6/30/21)
Exhibit B

Table of Contents

MILLER PACIFIC
INGINllRING GROUP
Page
Introduction Letter __________________ -'
Soil Properties ___________________ _,_1
MSE Wall Design, __________________ -"'2
Slope Stability Analysis. ________________ --"'3
Settlement Analysis _________________ ___c4
Exhibit B

June 4, 2021
File: 1680.021Calcs.doc
CDM/Real Estate Company, Inc.
444 Airport Blvd., Suite 203
Watsonville, California 95076
Attn: Mr. John Fry
Introduction & Project Description
MllllR PACIFIC
INGINllRING GROUP
This letter summarizes our geotechnical calculations for the planned residential subdivision located on an approximate 12-acre vacant lot at 511 Ohlone Parkway in southwestern Watsonville, California. The proposed plan is to construct between 150 to 160 single-family residences, duplex and townhomes. Significant site grading will be required to develop the multiple building pads and streets to allow access to the subdivision. Our work was performed in accordance with our Agreement dated April 22, 2020.

Existing Geotechnical Data
We utilized the previous geotechnical investigation report to determine the existing soil strength and consolidation parameters. The previous investigation report was prepared by Cornerstone Earth Group "Geotechnical Investigation Sunshine Vista Residential Development," February 10, 2017. We reviewed the report and provided our opinions and recommendations in a Geotechnical Evaluation Report, dated March 4, 2021.

Geotechnical Design and Evaluation
As discussed previously, significant site grading will be required to construct the project. Site grading will include constructing new stacked block mechanically stabilized earth (MSE) retaining walls up to 14-feet in exposed height. Additionally, fill slopes inclined up to 2:1 (horizontal:vertical) will be constructed. We provide geotechnical engineering design and evaluation for these design elements included MSE Wall Design; Site Settlement Analyses; and Slope Stability Analyses. The results of our evaluation and analyses are presented in this calculation package.

We hope this provides you with the information you require at this time. Please do not hesitate to contact us with any questions or concerns.

Sincerely,

MILLER PACIFIC ENGINEERING GROUP
Benjamin S. Pappas
Geotechnical Engineer No 2786
(Expires 9/30/22)
Exhibit B

Soil Properties
MlllER PAC If IC
INGINllHING GROUP
The soil properties utilized in our design and analyses were developed utilizing the existing subsurface and laboratory testing data obtained from the Cornerstone Geotechnical Investigation Report. The pertinent data is presented in the following pages and summarized below:

Native Clay Soils:

Saturated Unit Weight = 120 pcf
Total Unit Weight= 105 pcf
Undrained Shear Strength = 3000 psf
Compression Ratio = 0.13
Recompression Ratio = 0.04
Preconsolidation Pressure = 5,300 psi
Dense Sand Soils:

Saturated Unit Weight = 11 O pcl
Total Unit Weight= 95 pcl
Total Cohesion= 200 psi
Effective Cohesion = 200 psi
Total Friction Angle= 22°
Effective Friction Angle = 33°
Hillcrest Residential Development
Watsonville, California

Exhibit B

Exhibit B

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Recording requested by and
When recorded mail to:

City of Watsonville
Attn: City Clerk
275 Main St., 4th Floor
Watsonville, CA 95076
Space above reserved for use of County Recorder
This document is recorded for the benefit of the City of Watsonville and is exempt from recording fees pursuant to government Code Sections 6103 and 27383
Affordable Housing Agreement
“Hillcrest Estates”
THIS AGREEMENT, is made and entered into this day of _______________, 2022 by and between Hillcrest Watsonville, LLC, a California limited liability company, whose principal offices are located at 4041 Soquel Dr, Ste. 403, Soquel, CA 95073 (“Developer”) and the City of Watsonville, a municipal corporation, and the City of Watsonville in its capacity as the successor to the housing rights and obligations of the former Redevelopment Agency of the City of Watsonville (collectively "City”); and
WHEREAS, Developer is the owner and developer of approximately 13 acres of real property located at 511 Ohlone Parkway (APN: 018-372-14 & APN 018-381-01) that is more particularly described in the attached Exhibit A (the "Property"); and WHEREAS, Developer proposes to develop and construct 144 units and associated improvements, (the "Project"), on the above-described Property; and WHEREAS, the Project is required to include twenty nine (29) affordable housing unit(s) (collectively, the “Affordable Units”) pursuant to the City's Affordable Housing Ordinance, Chapter 14-46 of the Watsonville Municipal Code (the "Affordable Housing Ordinance"), and WHEREAS it is the intention of Developer and the City to set forth in greater detail and specificity within this separate document the terms and conditions for producing and selling affordable ownership housing within the Project, and
WHEREAS, it is the intention of Developer and the City that this Agreement run with the title to the Property and be binding on all parties that have or will acquire any right, title, or interest in said Property prior to the sale of the Affordable Units to individual home buyers.

NOW, THEREFORE, in consideration of the foregoing, and of the mutual terms and covenants hereinafter set forth, the parties hereby agree that Developer shall produce and sell Affordable Units as described in this Agreement.
1 Definitions. Depending upon their context, certain words and phrases used in this Agreement shall have the same meaning as the definitions that are included in the Exhibit E

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Affordable Housing Ordinance. Other words and phrases used in this Agreement shall have the meanings that are defined below:

1.1 "Above Moderate Income" means Above Moderate Income as defined in the Affordable Housing Ordinance.

1.2 “Affordable Housing Release Fee “means the fee established by the City for releasing Affordable Units from the Affordable Housing Ordinance and Affordable Housing Agreement. The Affordable Housing Release Fee was established by the Watsonville City Council with the adoption of Resolution No. 263-01 (CM) on November 15, 2001 and may be updated, revised or modified from time to time.

1.3 "Affordable Housing Ordinance" means Chapter 14-46 of the Watsonville Municipal Code as adopted by the Watsonville City Council by Ordinance No. 1107-01 on June 26, 2001.

1.4 "Affordable Unit(s)" means, depending upon the context, either one or more of the affordable ownership housing units, the development and sale of which are regulated by this Agreement.

1.5 "Agreement" means this Affordable Housing Agreement.

1.6 “Bilingual" means either 1) a person who can speak and read both English and Spanish languages, or 2) documents that are written in both English and Spanish, or both.

1.7 “Eligible Purchaser” means an Eligible Purchaser as defined in the Affordable Housing Ordinance.

1.8 “Excess Sales Proceeds” means ninety percent (90%) of the difference between the Maximum Allowable Sales Price and the Unrestricted Fair Market Value for an Affordable Unit that is allowed to be released from its Resale Agreement upon its sale.

1.9 “Maximum Allowable Sales Price” means the maximum price at which an Affordable Unit may be sold under the Affordable Housing Ordinance. The Maximum Allowable Sale Price established for each Affordable Unit is the absolute maximum price that the Developer or individual may charge for the unit or may receive as compensation for the unit. The Developer or individual owner may not charge or receive any additional amount or compensation for an Affordable Unit regardless of whether the additional amount is 1) for options, upgrades or additional improvements to the unit, 2) paid through escrow or outside of escrow, 3) paid prior to, after or as part of the purchase escrow or 4) paid in cash or in kind.

1.10 "Median Income" means Median Income as defined in the Affordable Housing Ordinance.

Exhibit E

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1.11 "Moderate Income" means Moderate Income as defined in the Affordable Housing Ordinance.

1.12 "Target Income Level(s)" means, depending upon the context, one or more of the three income levels (i.e., Median Income, Moderate Income and Above Moderate Income) to which the sale of Affordable Units must be targeted.

1.13 “Unrestricted Fair Market Value” means the amount that an Affordable Unit could sell for if its sales price and occupancy were not restricted under the Affordable Housing Ordinance. The City may, at its sole option, require that the Unrestricted Fair Market Value be established through an appraisal by an MAI or other qualified appraiser. 2 Compliance with Affordable Housing Agreement. Developer shall comply with this Affordable Housing Agreement, all of the applicable requirements and conditions of the Affordable Housing Ordinance and any special terms, conditions, requirements and/or waivers that were specifically applied to the Project as part of the City’s approval of the Project.
3 Number, Location and Distribution of Affordable Units. The number, location and distribution of Affordable Units that shall be produced and sold are specified in Exhibit B of this Agreement

3.1 Design. The design of the inclusionary units shall be consistent and compatible with the design of the total project development in terms of appearance, materials and finished quality. The affordable units may have lesser amenities than the market rate, but these alternative finishes must be pre-approved by the Community Development Director. 4 Pricing of Affordable Units. Developer shall sell each Affordable Unit for no more than the Maximum Allowable Sales Price set for the unit by the City pursuant to Section 14-

46.15(f)(2) of the Affordable Housing Ordinance. Developer shall notify City thirty (30) days prior to offering each Affordable Unit for sale to allow City adequate time to calculate and notify Developer of the Maximum Allowable Sales Price for the unit and the income limits for Eligible Purchasers. The method for calculating the Maximum Affordable Sales Price is described in Exhibit C of this Agreement. 5 Recordation and Release of Agreement. This Agreement shall be recorded against the title to the Property prior to the recordation of the Final Subdivision Map(s) for the Project. Upon the recordation of a Final Subdivision Map(s), the City shall release from this Agreement all parcels created by the Final Subdivision Map(s) that are not designated as Affordable Units.
6 Marketing and Sales of Affordable Units

6.1 General Provisions. Except where this Agreement provides otherwise, Developer shall follow the procedures and comply with the requirements of Section 14-46.15 of the Watsonville Municipal Code when marketing and selling the Affordable Units.

Exhibit E

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6.2 Local and Bilingual Marketing. To the extent allowed by applicable law, Developer shall make reasonable efforts to sell Affordable Units to buyers who live or work within the Watsonville City Limits. To the extent necessary to ensure compliance with State and Federal fair housing laws, Developer shall employ bilingual staff or a firm with bilingual staff to market the Affordable Units and shall prepare and use bilingual sales and marketing materials for the Affordable Units.

6.3 Participation in Affordable Housing Programs. Developer shall to the greatest extent reasonably possible participate in the available local, State and Federal affordable housing programs in order to ensure that the highest possible number of low to moderate income households, first time home buyers, Watsonville residents, farm workers and other local workers can purchase Affordable Units.

6.4 Verification of Buyer Eligibility. Prior to the close of escrow for the sale of each Affordable Unit, the Developer shall provide verification to the City that the buyer's income does not exceed the maximum allowed for the Target Income Level for that unit.

Incomes shall be verified (or previous verifications shall be updated) no earlier than sixty (60) days prior to close of escrow.

6.5 Individual Regulatory, Security and Disclosure Documents. Prior to the sale of each Affordable Unit, Developer shall ensure that:

6.5.1 The buyer and the City sign a Buyer's Occupancy and Resale Agreement with Option to Purchase (hereinafter "Resale Agreement”), which is in the form that is attached as Exhibit D to this Agreement. The Resale Agreements shall be recorded against the title to each unit immediately following the liens for any loans that are obtained by the home buyer to finance the purchase of the unit.

6.5.2 The buyer signs a Deed of Trust, which is in the form that is attached as Exhibit E to this Agreement, to secure performance of the Buyer's obligations under the Resale Agreement and, should the buyer fail to comply with the terms of the Resale Agreement, payment of Excess Sales Proceeds. The Deed of Trust shall be recorded against the title to the unit following the liens for any loans that are obtained by the home buyer to finance the purchase of the unit.

6.5.3 The buyer signs a Disclosure concerning the Affordable Housing Ordinance, the Resale Agreement and the Deed of Trust, which is in a form that will be provided or approved by the City.

6.6 Inability to Sell Affordable Unit. Section 14-46.15 (g) of the Watsonville Municipal Code shall apply if Developer is unable to sell an Affordable Unit. Prior to the City releasing an Affordable Unit from the restrictions of the Affordable Housing Ordinance and this Affordable Housing Agreement, Developer shall pay the City’s current Affordable Housing Release Fee.

Exhibit E

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7 Default

7.1 Failure of the Developer to cure any default in the Developer's obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default from the City (or where the default is of the nature which cannot be cured within such ninety (90)-day period, the failure of the Developer to commence to cure such default within ninety (90)-day period or to proceed diligently to complete the cure of such a default within one hundred twenty (120) days) will constitute a default under the Development Agreement and a failure to satisfy the land use conditions of approval with respect to the Property and the requirements of the Affordable Housing Ordinance; and the City may exercise any and all remedies available to it with respect to the Developer's failure to satisfy the requirements of the Development Agreement and land use conditions of approval including but not limited to the withholding of building permits for the Market Units within the Subject Property.

7.2 Cross Default. If Developer and the City have entered into a Development Agreement as part of City’s approval for this Project, a default under this Agreement shall also constitute a default under the Development Agreement and a default under the Development Agreement shall also constitute a default under this Agreement. 8 Other Provisions. The following terms and conditions shall also apply to this Agreement and the development and sale of the Affordable Units that are governed by this Agreement.

8.1 Term of Agreement. This Agreement of shall remain in force until six (6) months following the sale of the last Affordable Unit to an Eligible Purchaser.

8.2 Term of Affordability. Each Affordable Unit shall remain affordable for a minimum period of forty-five (45) years from the date of its sale by Developer to an Eligible Purchaser.

8.3 Watsonville Municipal Code. Unless the text of this Agreement specifies otherwise, any reference to a Section number is a reference to the Watsonville Municipal Code.

8.4 No Joint Venture or Partnership. Nothing contained in this Agreement or any document executed with this Agreement shall be construed as creating a joint venture or partnership between the City and Developer.

8.5 Reporting and Compliance Monitoring. Compliance with the requirements of this Agreement covering the initial sale of the Affordable Units shall be reported to the City by the Developer and certified by a third party such as a Certified Public Accountant approved by the City's Redevelopment and Housing Department Director. Developer shall provide the City with other reports as reasonably required by the City to verify compliance with this Agreement.

Exhibit E

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8.6 Appointment of Other Agencies. At its sole discretion, City may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform the City's obligations under this Agreement.

8.7 Burden to Run with Property. The covenants and conditions herein contained shall apply to and bind the heirs, executors, administrators, successors, transferees, and assignees of all the parties having or acquiring any right, title or interest in or to any part of the Property and shall run with and burden the Property until terminated or released in accordance with the provisions hereof. Prior to the issuance of building permits, the Developer shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in the Property.

Notwithstanding anything to the contrary set forth in this Agreement, individual purchasers of units pursuant to any approved public report in compliance with the California Subdivided Lands Act, and mortgage lenders holding deeds of trust on such individual units after sale to such purchasers, shall not be subject to the terms of this Agreement; and the terms of this Agreement shall be of no further force or effect with respect to such completed unit on the date of the recordation of a deed to the individual purchaser.

8.8 Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnities"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the development of the Property or the sale of units on the Property, and shall protect and defend Indemnities, and any of them with respect thereto.

8.9 Insurance. Developer shall obtain, at its expense, comprehensive general liability insurance for the development of the Property naming Indemnities as additional named insured’s with aggregate limits of not less than Two Million Dollars ($2,000,000) for bodily injury and death and property damage, including coverage for contractual liability and products and completed operations purchased by Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best's Key Rating of not less than A-V, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the development of the Property.

8.10 Recording of Agreement. The parties hereto shall cause this Agreement to be recorded against the Property in the official Records of the County of Santa Cruz.

8.11 Third Party Beneficiaries. This Agreement is made for the sole protection and benefit of City, and their permitted Successors. No other person shall have the right of action based on any provision of this Agreement.

Exhibit E

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8.12 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any dispute arising out of this Development Agreement shall be determined by the State Courts of the County of Santa Cruz.

8.13 Partial Invalidity or Unenforceability. If any provision of this Agreement shall be determined by a court to be invalid and/or unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any statute of the State of California which became effective after the effective date of this Agreement, then the remaining provisions of this Agreement shall nevertheless remain in full force and effect.

8.14 Notices and Correspondence. Any notices and correspondence concerning this Agreement shall be sent to the parties at the following addresses:

City of Watsonville Hillcrest Watsonville, LLC
275 Main St., 4th Floor 4041 Soquel Dr, Ste 403
Watsonville, CA 95077 Soquel, CA 95073
Attn: City Clerk Attn: Lisa Li
Community Development Dept.

Attn: Affordable Housing Program
250 Main St.

Watsonville, CA 95076
In Witness Whereof, the parties have executed this Affordable Housing Agreement (Ownership Units) as of the day and year written above.

The City of Watsonville Hillcrest Watsonville LLC
a Municipal Corporation a California limited liability company By: By:

Tamara Vides, City Manager Pro Tempore , President
Approved as to Form
By:

Samantha Zutler, City Attorney
Exhibits
Exhibit A - Legal Description
Exhibit B - Number, Location and Distribution of Affordable Units Exhibit C - Sample Sales Price Calculation
Exhibit D - Form of Resale Agreement
Exhibit E - Form of Deed of Trust
Exhibit E

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Exhibit A
Legal Description
The land referred to herein is described as follows:

ALL OF THAT REAL PROPERTY LOCATED IN THE CITY OF WATSONVILLE, SANTA CRUZ COUNTY, CALIFORNIA AS FOLLOWS:

PARCEL ONE

BEING A PART OF THE RANCHO BOLSA DEL PAJARO AND BEING ALSO A PART OF THE LANDS CONVEYED BY ADOLPH LAPORTE, ET UX., TO WATSONVILLE MEAT COMPANY BY DEED DATED JUNE 20, 1947 AND RECORDED JULY 2, 1947 IN VOLUME 587, PAGE 208, OFFICIAL

RECORDS OF SANTA CRUZ COUNTY, AND BEING MORE PARTICULARLY BOUNDED AND DESCRIBED AS FOLLOWS, TO WIT:

BEGINNING AT A 1” PIPE AT THE NORTHWESTERLY OR MOST NORTHERLY CORNER OF LANDS CONVEYED BY WATSONVILLE MEAT COMPANY TO A & K COMPANY BY DEED DATED MAY 8, 1956 AND RECORDED MAY 14, 1956 IN VOLUME 1074, PAGE 472, OFFICIAL RECORDS OF SANTA CRUZ COUNTY; THENCE FROM SAID POINT OF BEGINNING AND RUNNING NORTH 17° 17’ EAST 565.22 FEET TO A PIPE ON THE NORTHERLY BOUNDARY OF SAID LANDS OF WATSONVILLE MEAT COMPANY; THENCE RUNNING ALONG THE NORTHERLY AND EASTERLY BOUNDARIES THEREOF, SOUTH 67° 48’ EAST 2.75 FEET TO AN ANGLE; THENCE SOUTH 46° 18’ EAST 51.48 FEET TO AN ANGLE; THENCE NORTH 79° 12’ EAST 126.72 FEET TO AN ANGLE; THENCE NORTH 44° 12’ EAST 73.92 FEET TO AN ANGLE; THENCE NORTH 69° 57’ EAST 101.64 FEET TO AN ANGLE; THENCE SOUTH 82° 03’ EAST 469.92 FEET TO AN ANGLE; THENCE SOUTH 30° 18’ EAST

41.58 FEET TO AN ANGLE; THENCE SOUTH 2° 33’ EAST 148.50 FEET TO AN ANGLE; THENCE SOUTH 9° 42’ WEST 131.34 FEET TO AN ANGLE; THENCE SOUTH 24° 27’ WEST 232.32 FEET TO AN ANGLE; THENCE SOUTH 35° 12’ WEST 66.00 FEET TO AN ANGLE; THENCE SOUTH 29° 55’ WEST 159.15 FEET TO A PIPE AT AN ANGLE IN THE EASTERLY BOUNDARY OF THE AFOREMENTIONED LANDS OF A & K COMPANY; THENCE RUNNING ALONG THE BOUNDARY OF SAID LANDS, NORTH 11° 04’ EAST 87.14 FEET TO A PIPE AT AN ANGLE; THENCE NORTH 87° 48’ WEST 366.54 FEET TO A PIPE AT AN ANGLE; THENCE NORTH 78° 23’ WEST 262.76 FEET TO A PIPE AT AN ANGLE; THENCE NORTH 83° 17’ WEST 130.85 FEET TO THE POINT OF BEGINNING.

EXCEPTING A STRIP OF LAND, 15 FEET IN WIDTH, DESCRIBED BY ITS CENTERLINE AS:

BEGINNING AT A STATION ON THE NORTHERLY BOUNDARY OF THE AFOREMENTIONED 6.14

ACRE TRACT CONVEYED BY WATSONVILLE MEAT COMPANY TO A & K COMPANY, FROM WHICH A ½” PIPE AT THE NORTHEASTERLY CORNER THEREOF BEARS SOUTH 87° 48’ EAST 165.0 FEET DISTANT; THENCE FROM SAID POINT OF BEGINNING AND RUNNING NORTH 62° 58’ EAST 127.7 FEET TO AN ANGLE; THENCE NORTH 51° 42’ EAST 67.4 FEET TO AN ANGLE; THENCE NORTH 37° 29’ EAST 54.6 FEET TO AN ANGLE; THENCE NORTH 32° 19’ EAST 195.2 FEET TO AN ANGLE; THENCE NORTH 26° 02’ EAST 85.4 FEET TO AN ANGLE; THENCE NORTH 16° 57” EAST

76.0 FEET TO AN ANGLE; THENCE NORTH 8° 08’ EAST 74.4 FEET TO AN ANGLE; THENCE NORTH 1° 07’ WEST 56.0 FEET TO AN ANGLE; THENCE NORTH 19° 12’ WEST 79.8 FEET, MORE OR LESS, TO THE NORTHERLY BOUNDARY OF SAID LANDS OF THE WATSONVILLE MEAT COMPANY.

PARCEL TWO

A RIGHT OF WAY, APPURTENANT TO PARCEL ONE, AS GRANTED BY WATSONVILLE MEAT COMPANY, A CORPORATION, TO RALPH V. TIDD, ET AL., BY DEED RECORDED JANUARY 21, 1957 IN VOLUME 1112, PAGE 500, OFFICIAL RECORDS OF SANTA CRUZ COUNTY, OVER THE 15

FOOT STRIP OF LAND EXCEPTED FROM PARCEL ONE ABOVE AND INCLUDING THE RIGHT TO GRADE ON AND OVER SAID 15 FOOT STRIP OF LAND AND TO REMOVE SOIL FROM AND TO DEPOSIT SOIL ON SAID15 FOOT STRIP OF LAND IN CONNECTION WITH THE WORK OF LAYING Exhibit E

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OUT AND IMPROVING THE PARCEL OF LAND ADJOINING BOTH SIDES OF SAID 15 FOOT STRIP OF LAND; PROVIDED, HOWEVER, THAT THE SEWER PIPE LINE INSTALLED IN SAID 15 FOOT STRIP NOT BE INJURED OR EXPOSED IN VIOLATION OF ANY ORDINANCE OR LAW.

PARCEL THREE
ALSO A RIGHT OF WAY, APPURTENANT TO PARCEL ONE, 30 FEET IN WIDTH, AS GRANTED BY WATSONVILLE MEAT COMPANY, A CORPORATION, TO RALPH V. TIDD, ET AL., BY DEED RECORDED JANUARY 21, 1957 IN VOLUME 1112, PAGE 500, OFFICIAL RECORDS OF SANTA

CRUZ COUNTY, BEING DESCRIBED BY ITS EASTERLY AND SOUTHEASTERLY BOUNDARIES AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF PARCEL ONE; AND THENCE SOUTH 17° 17’ WEST 565.22 FEET TO A PIPE AT THE SOUTHWEST CORNER OF SAID PARCEL; THENCE SOUTH 21° 30’ WEST 51.00 FEET TO A PIPE; THENCE SOUTH 19° 47’ EAST 464.91 FEET TO A PIPE; THENCE RUNNING ALONG THE BOUNDARY OF M.F. FARMING COMPANY, SOUTH 66° 53’ WEST 348.64 FEET TO A 6” X 6” POST SCRIBED “S”; THENCE SOUTH 16° 13’ EAST 1089.79 FEET TO A STATION IN A DRAINAGE DITCH; THENCE SOUTH 22° 59’ EAST 607.86 FEET TO A STATION ON THE NORTHWEST SIDE OF THE SOUTHERN PACIFIC RAILROAD; THENCE SOUTH 22° 59’ EAST 600.68 FEET TO THE BEACH ROAD.

PARCEL FOUR

BEING A PART OF THE RANCHO BOLSA DEL PAJARO, SANTA CRUZ COUNTY, CALIFORNIA,

AND BEING ALSO A PORTION OF THE LANDS CONVEYED BY CHRISTINE GRUL, A WIDOW, TO MANUEL SANTOS, ET UX., BY DEED RECORDED AUGUST 24, 1948 IN VOLUME 672, PAGE 495, OFFICIAL RECORDS OF SANTA CRUZ COUNTY.

BEGINNING AT A ¾ INCH PIPE SET AT THE SOUTHWESTERN CORNER OF SAID LAST NAMED

LANDS FORMERLY OF ONE LA PORTE AND RUNNING THENCE ALONG THE BOUNDARY OF THE AFORESAID LANDS CONVEYED BY GRUL TO SANTOS, AS AFORESAID, NORTH 2° 26’ EAST 242.92 FEET TO THE MIDDLE OF A 30.00 FOOT RIGHT OF WAY; THENCE ALONG THE CENTERLINE OF SAID RIGHT OF WAY, NORTH 80° 09’ EAST 103.94 FEET; THENCE NORTH 44° 15’ EAST 82.62 FEET; AND THENCE NORTH 20° 42’ EAST 3.06 FEET; THENCE LEAVING SAID RIGHT

OF WAY AND LEAVING SAID BOUNDARY OF AFORESAID LANDS CONVEYED BY GRUL TO SANTOS, AS AFORESAID, SOUTH 2° 26’ WEST 344.31 FEET TO A ¾ INCH PIPE SET ON THE

SOUTHERN BOUNDARY OF SAID LAST NAMED LANDS AND THENCE ALONG SAID LAST NAMED BOUNDARY, NORTH 82° 12’ WEST 158.29 FEET TO THE POINT OF BEGINNING.

EXCEPTING FROM THE LANDS HEREIN CONVEYED, A STRIP OF LAND 15 FEET IN WIDTH

MEASURED AT RIGHT ANGLES, THE EASTERLY BOUNDARY OF WHICH SHALL BE THE

EASTERLY BOUNDARY OF THE ABOVE DESCRIBED LANDS BEING THE SAME LAND DESCRIBED IN THE DEED FROM PENNIMAN TITLE COMPANY, INC., TO T.O. TOMASELLO AND A & K COMPANY, A PARTNERSHIP, RECORDED JANUARY 31, 1957 IN VOLUME 1114, PAGE 324, OFFICIAL RECORDS OF SANTA CRUZ COUNTY.

APN: 018-372-14 (PARCEL ONE)
APN: 018-372-14
Exhibit E

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Exhibit B
Number, Location and Distribution of Affordable Units
Number of Affordable Units
The Developer shall develop twenty-nine (29) Affordable Units and sell these units to a Median, Moderate and Above Moderate Income household.

Distribution of Affordable Units
The Affordable Units shall be distributed as follows among the Project’s product types, unit sizes (number of bedrooms), development phases and/or Target Income Levels:

DISTRIBUTION OF AFFORDABLE UNITS
Number of Units by Income Category
# of
Bedrooms Plan type Median Moderate Above Moderate
Total Affordable
Units
3 Townhouse 8 7 14 29
TOTAL 8 7 14 29

DISTRIBUTION OF AFFORDABLE UNITS BY PHASE
Plan type Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
SFD
Townhouse Lots 18, 19,
22, 25, 26, 29
Lots 32, 37,
45, 46, 49
Lots 52, 53,
56, 59, 60,
92 Lots 85, 88,
89, 95, 99,
102
Lots 132, 135,
136, 139, 142,
143
Duplex
TOTAL 6 5 6 6 6
Exhibit E

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Exhibit C
Sample Sales Price Calculation for a Three-Bedroom Median Income Unit The Maximum Allowable Sales Price for Affordable Units shall be calculated using the procedures and formulas described below and in Section 14-46.15 (f) (2) of the Affordable Housing Ordinance. For Affordable Units that are restricted to occupancy by Median Income households, as defined in this Agreement, the current Watsonville Moderate Income Limits as established pursuant to the Affordable Housing Ordinance shall be used in these calculations.

The prevailing interest rate used in these calculations shall be determined by the City at its sole discretion.

1. Determine the annual Watsonville Median Income Limit for a household size that is one person larger than the number of bedrooms in the affordable unit;

2. Multiply the income limit determined in the previous step by thirty percent (30%) to obtain an annual housing allowance of thirty percent (30%) of income;

3. Divide the annual housing allowance determined in the previous step by twelve (12) to determine the monthly housing allowance;

4. Using a standard amortization table or formula, calculate the loan amount that can be repaid over thirty (30) years with equal monthly payments equal to the monthly housing allowance using the prevailing interest rate for thirty (30) years, and assuming a fully amortized fixed rate mortgage; and

5. Divide the loan amount calculated in the previous step by .95 to determine the Maximum Allowable Sales Price assuming a five percent (5%) down payment.

The following calculations are for a three-bedroom unit that is affordable at the Median Income Level based on the Income Limits adopted by the City Council on August 25, 2020 and the Prevailing Interest Rate adopted by the City Council.

Step 1 Median Income Limit for a 3 person household $92,400 Step 2 30% of the Income Limit determined in Step 1 $27,720 Step 3 One twelfth of the amount calculated in Step 2 $2,310 Step 4 Amount that can be financed with payment calculated in Step 3 with a 30 year fixed-rate loan at a 6.75% interest rate (the adopted rate) $339,034
Step 5 Loan amount in Step 4 divided by 95% $356,878
The Maximum Allowable Sales Price Calculation for resales by individual home owners who purchased an affordable unit shall be the higher of 1) the above calculation or 2) the owner’s original purchase price plus an amount equal to the original purchase price times fifty percent (50%) of the change in the House Price Index since the purchase date, as set forth in Section 14-

46.15(h)(2)(ii) of the Affordable Housing Ordinance.

Exhibit E

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Exhibit D
Form of Resale Agreement
Complimentary Recording Requested
Pursuant To Government Code
Section 6103 and 27383
When Recorded Mail To:

City of Watsonville
275 Main Street, 4
th Floor
Watsonville, CA 95076
Attn: Affordable Housing Program

BUYER'S OCCUPANCY AND RESALE AGREEMENT

WITH OPTION TO PURCHASE

CITY OF WATSONVILLE INCLUSIONARY HOUSING PROGRAM
Owner:

Address of Home:

Development: «Subdivision» APN:

Income Category of Home:

Number of Bedrooms:

Original Sales Price:

This Buyer's Occupancy and Resale Agreement with Option to Purchase (the "Agreement") is entered into as on _____________, 20__, by and between the City of Watsonville, a Municipal Corporation, and the City of Watsonville in its capacity as Successor for Housing Functions of its dissolved Redevelopment Agency (the "City") and _____________________ (the “Owner”).

RECITALS
A. Pursuant to the City of Watsonville's Affordable Housing Ordinance (Ordinance No. 1107-01), Chapter 14-46 of the Watsonville Municipal Code, a portion of all new housing constructed in the City of Watsonville is required to be affordable for median to above moderate income households.

B. «Developer_Name» (the "Developer") entered into an Affordable Housing Agreement dated «AHO_Agreement_Date». Pursuant to the Affordable Housing Agreement, the Developer agreed to sell «M__of_units» homes to median, moderate, or above moderate income households at affordable prices (the "Affordable Units").

Exhibit E

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C. Owner intends to purchase the property located at in the City of Watsonville, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Home").

The Home is one of the Affordable Units. The Home has been designated by the City and the Developer as an __________________________ unit.

D. Pursuant to the Affordable Housing Ordinance and the Affordable Housing Agreement, the Developer and the City are required to ensure the continued affordability of the Home as an Affordable Unit, and the City therefore requires the Owner to execute this Agreement as a condition of the Owner's purchase of the Home. The Owner has agreed to execute and comply with this Agreement in consideration of the Developer's agreement to sell the Home to the Owner at an affordable price, which is below the fair market value of the Home.

E. The purpose of this Agreement is to place resale controls on the Home and to require the payment of any excess proceeds of sale to the City. This Agreement also provides the City an option to purchase the Home at a restricted price, given in consideration of the economic benefits to the Owner resulting from purchase of the Home at a below market price under the City's Affordable Housing Program.

F. The Owner is receiving a first mortgage loan (the "First Mortgage Loan") from ____________________________(the "First Lender"). The First Mortgage Loan is secured by a deed of trust executed by the Owner in favor of First Lender and recorded in the County of Santa Cruz (the "First Mortgage Deed of Trust").

G. This Agreement shall be secured by a deed of trust on the Home (the "City Deed of Trust"). This Agreement and the City Deed of Trust shall be subordinate to the lien of the First Mortgage Deed of Trust.

NOW, THEREFORE, in consideration of the benefits received by the Owner and the City hereunder, the Owner and the City agree, as follows:

DEFINITIONS
The following terms are specially defined for this Agreement and their definitions can be found in the sections indicated below:
"Affordable Housing Ordinance" – Recital A
"Agreement" - First sentence of the Agreement on page 1 "Affordable Price" – Section 10B
"City" - First sentence of the Agreement on page 1
"City Deed of Trust" - Recital G
"City Option" - Section 12A
Exhibit E

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"City Option Price" – Section 12B
"Eligible Purchaser" - Section 11B
"Excess Sales Proceeds" - Section 14
"Unrestricted Fair Market Value" - Section 10B
"First City Response Notice" - Section 8
"First Lender" - Recital F
"First Mortgage Deed of Trust" - Recital F
"First Mortgage Loan" - Recital F
"Home" - Recital C and Section 2
"Housing Price Index" – Section 10A
"Indexed Value" – Section 10A
"Market Purchaser" - Section 14
"Marketing Period" - Section 11A
"Maximum Allowable Sales Price" - Section 10
"Owner" - First sentence of the Agreement on Page 1
"Owner's Notice of Failure to Locate Eligible Purchaser" - Section 11E "Owner's Notice of Intent to Sell" - Section 7
"Second City Response Notice" - Section 11E
"Transfer" - Section 6

DESCRIPTION OF PROPERTY
This Agreement concerns the real property in the City of Watsonville, State of California with the street address set forth on page 1 of this Agreement, which is more fully described in Exhibit A attached hereto and incorporated in this Agreement by reference (the "Home").

Exhibit E

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OWNER CERTIFICATIONS; OWNER OCCUPANCY REQUIREMENT
The Owner certifies that the financial and other information previously provided in order to qualify to purchase the Home is true and correct as of the date first written above. The Owner shall occupy the Home as the Owner's principal place of residence. The Owner shall be considered as occupying the Home if the Owner is living in the unit for at least ten (10) months out of each calendar year. The Owner shall provide an annual written certification to the City that the Owner is occupying the Home as his or her principal place of residence.

LEASING OF HOME
The Owner shall not lease the Home to another party. Any lease in violation of this Agreement is prohibited, and shall be a default under this Agreement and the City Deed of Trust.

MAINTENANCE AND INSURANCE REQUIREMENTS
The Owner shall maintain the Home, including landscaping, in good repair and in a neat, clean and orderly condition and will not commit waste or permit deterioration of the Home.

The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Home (adjusted every five (5) years by appraisal, if requested by City), naming the City as an additional insured. Additional insurance requirements are set forth in Section 5 of the City Deed of Trust.

RESTRICTIONS ON RESALE OF THE HOME
Any Transfer of the Home will be subject to the provisions of this Agreement including, without limitation, the City Option described in Section 12 below. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Home, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, or an interest evidenced by a land contract by which possession of the Home is transferred and Owner retains title. Any Transfer without satisfaction of the provisions of this Agreement is prohibited.

Transfers by devise or inheritance to an existing spouse or domestic partner, or a spouse, as part of a dissolution proceeding, or in connection with marriage shall not be considered a Transfer for the purposes of this Agreement.

NOTICE OF INTENDED TRANSFER; PREPARATION OF HOME FOR SALE In the event the Owner intends to Transfer or vacate the Home, the Owner shall promptly give the City written notice of such intent (the "Owner's Notice of Intent to Sell"). The Owner's Notice of Intent to Sell shall be sent to the City by certified mail, return receipt requested at the address provided in Section 31 of this Agreement. The Owner's Notice of Intent to Sell shall include the information necessary for the City to determine the Maximum Allowable Sales Price of the Home, including the following information:

Exhibit E

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the address of the Property;
the date of purchase of the Home by the Owner;
the purchase price of the Home paid by the Owner at the time of his/her purchase;
a copy of the HUD-1 Settlement Statement or equivalent document from the close of escrow on the Owner's purchase of the Home; the date on which Owner intends to vacate Home;
the date Home will be placed on the market; and
the name and phone number of the person to contact to schedule inspection of the Home by the City.

Following delivery to the City of the Owner's Notice of Intent to Sell, the Owner shall prepare the Home for sale, as follows:
within thirty (30) days of delivery of the Owner's Notice of Intent to Sell, the Owner shall obtain and deliver to the City a current written report of inspection of the Home by a licensed structural pest control operator;
within the sooner of (a) sixty (60) days from the date of delivery of the Owner's Notice of Intent to Sell, or (b) prior to close of escrow on the Transfer, the Owner shall repair all damage noted in the pest report including damage caused by infestation or infection by wood-destroying pests;
within ten (10) business days of the date of the Owner's Notice of Intent to Sell, the Owner shall allow the City, or its designee, to inspect the Home to determine its physical condition;
if the Home is vacant, the Owner shall maintain utility connections until the close of escrow on the Transfer;

CITY RESPONSE TO OWNER'S NOTICE OF INTENT TO SELL
The City shall respond in writing (the "First City Response Notice") to the Owner's Notice of Intent to Sell within ten (10) business days of City receipt of a complete Owner's Notice of Intent to Sell that includes all information required under Section 7 above and access to inspect the Home as required under Section 7(B)(3) above. The First City Response Notice shall inform the Owner of the following information: (1) the maximum qualifying income for an Eligible Purchaser; (2) the certifications required of an Eligible Purchaser; and (3) the Maximum Allowable Sales Price the Owner may receive for the Home, calculated by the City pursuant to Section 11 below.

Exhibit E

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OWNER ACKNOWLEDGMENT OF CITY RESPONSE NOTICE
No later than seven (7) days following the date of the First City Response Notice, the Owner shall acknowledge in writing to the City that he/she has received the City Response Notice and still intends to Transfer the Home.

DETERMINATION OF MAXIMUM ALLOWABLE SALES PRICE FOR

RESTRICTED SALE
If the Owner sells to an Eligible Purchaser, the maximum sales price (the "Maximum Allowable Sales Price") that the Owner shall receive from the Eligible Purchaser for purchase of the Home shall be the greater of the Indexed Value or the Affordable Price, but in no event greater than the Unrestricted Fair Market Value.

Indexed Value. The Indexed Value of the Home means the sales price of the Home at the time of purchase by the Owner, as set forth on page 1 of this Agreement, increased by fifty percent (50%) of the annual percentage of increased value in the Housing Price Index from the date of the original purchase of the Home by the Owner to the date of receipt by the City of the Owner's Notice of Intent to Transfer, and, where applicable, adjusted pursuant to subsection (2) below to reflect the cost of deferred maintenance. "Housing Price Index" shall mean the Santa Cruz-Watsonville Metropolitan Statistical Area Housing Price Index as published from time to time by the office of Federal Housing Enterprise Oversight or, if such index is no longer published, a comparable index designated by the City of Watsonville.

Affordable Price. The Affordable Price of the Home means the affordable price for a Median Income Home, Moderate Income Home, or Above Moderate Income Home (as applicable, pursuant to the designation of the Home on page 1 of this Agreement), pursuant to Section 14-46.15(f)(2) of the Affordable Housing Ordinance.

Unrestricted Fair Market Value. In certain circumstances it may be necessary to determine the fair market value of the Home (the "Unrestricted Fair Market Value"). These circumstances include: (1) where the parties wish to determine if the Maximum Allowable Sales Price exceeds the Unrestricted Fair Market Value in order to determine the Maximum Allowable Sales Price pursuant to Section 10; (2) where the Owner is selling the Home to a Market Purchaser at an unrestricted price pursuant to Section 13; and (3) where the Owner wishes to refinance the First Mortgage Loan as described in Section 24 below. If it is necessary to determine the Unrestricted Fair Market Value of the Home, it shall be determined by a certified MAI or other qualified real estate appraiser approved in advance by the City. If possible, the appraisal shall be based upon the sales prices of comparable properties sold in the market area during the preceding three (3)-month period. Nothing in this section shall preclude the Owner and the City from establishing the Unrestricted Fair Market Value of the Home by mutual agreement in lieu of an appraisal pursuant to this section.

Holdback for Damage Repair Cost. If the City finds that the Owner, through neglect, abuse, or lack of adequate maintenance, has damaged the Home, the City may require Exhibit E

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that repairs be made at the Owner's cost prior to sale or through the escrow for the sale of the Home.

SALE OF HOME TO ELIGIBLE PURCHASER AT RESTRICTED PRICE
Following receipt of the First City Response Notice notifying the Owner of the Maximum Allowable Sales Price, the Owner may proceed to sell the Home in compliance with the following requirements:

Marketing Period. The Owner shall have two hundred forty-five (240) days from the date of the First City Response Notice (the "Marketing Period") to market the Home and find an Eligible Purchaser. During the Marketing Period, the Owner shall use bona fide good faith efforts to sell the Home to an Eligible Purchaser in compliance with this Section 11, including listing the Home on the Multiple Listing Service, keeping the Home in an orderly condition, making the Home available to show to agents and prospective buyers, and providing buyers with Eligible Purchaser requirements, including income qualifications and the City's form of disclosure statement summarizing the terms of the buyer's resale agreement. A proposed purchaser ("Proposed Purchaser"), who the Owner believes will qualify as an Eligible Purchaser, shall be referred to the City for an eligibility determination.

Eligible Purchaser. A Proposed Purchaser shall qualify as an "Eligible Purchaser" if he or she meets the following requirements, as determined by the City:

Intent to Owner Occupy. The Proposed Purchaser shall certify that he or she will occupy the Home as his or her principal place of residence throughout his or her ownership.

Agreement to Sign Buyer's Resale Agreement and to Cooperate with City.

The Proposed Purchaser shall agree to sign a buyer's resale and occupancy agreement with option to purchase restricting future resale of the Home and shall agree to cooperate fully with the City in promptly providing all information requested by the City to assist the City in monitoring the Proposed Purchaser's compliance with the buyer's resale and occupancy agreement with option to purchase.

Income Eligibility. The combined maximum income for all household members of the Proposed Purchaser shall not exceed the income level designated by the City in the First City Response Notice.

Maximum Allowable Sales Price and Closing Costs. The purchase price for the sale of the Home by the Owner to the Eligible Purchaser shall not exceed the Maximum Allowable Sales Price calculated by the City pursuant to Section 14-46.15(h)(2) of the Affordable Housing Ordinance and Section 10 above, as set forth in the First City Response Notice. The Maximum Allowable Sales Price shall not include closing costs paid by the Eligible Purchaser. The closing costs paid by the Eligible Purchaser shall not exceed reasonable and customary buyers' closing costs in the County of Santa Cruz.

Exhibit E

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Disclosure and Submittals. The Owner and the Proposed Purchaser shall provide the following information and documents to the City:

The name, address and telephone number in writing of the Proposed Purchaser.

A signed financial statement of the Proposed Purchaser in a form acceptable to the City and any other supporting documentation requested by the City. The financial information shall be used by the City to determine the income eligibility of the Proposed Purchaser.

The proposed sales contract and all other related documents which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a) the sales price; and (b) the price to be paid by the Proposed Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any.

A written certification, from the Owner and the Proposed Purchaser in a form acceptable to the City that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to and approved by the City. The certification shall also provide that the Proposed Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the City. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the City, the City shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Proposed Purchaser for the return of any moneys paid or received in violation of this Agreement or for any of the Owner's and/or the Proposed Purchaser's costs and legal expenses, shall be borne by the Owner and/or the Proposed Purchaser and they shall hold the City and its designee harmless and reimburse the City's and its designee's expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement.

An executed buyer's resale and occupancy agreement and option to purchase and an executed deed of trust from the Proposed Purchaser in forms provided by the City. The recordation of the new deed of trust and buyer's resale and occupancy agreement and option to purchase shall be a condition of the City's approval of the proposed sale.

The name of the title company escrow holder for the sale of the Home, the escrow number, and name, address, and phone number of the escrow officer.

Upon the close of the proposed sale, certified copies of the recorded City deed of trust and buyer's resale agreement, a copy of the final sales contract, settlement statement, escrow instructions, and any other documents which the City may reasonably request.

Exhibit E

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Failure To Locate Eligible Purchaser: Notice to City. If, despite bona fide good faith marketing efforts, the Owner is unable to locate an Eligible Purchaser during the Marketing Period and any extensions to the Marketing Period granted by the City, the Owner shall provide written notice to the City of this fact (the "Owner's Notice of Failure to Locate Eligible Purchaser"). Within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser, the City shall provide a second response notice to the Owner (the "Second City Response Notice") stating either (1) that the City will exercise the City Option to purchase the Home pursuant to Section 12 below, or (2) that the Owner may Transfer the Home to a person of the Owner's choosing (a "Market Purchaser") who is not an Eligible Purchaser, at an unrestricted price (supported by an MAI or other qualified appraisal), but shall pay all Excess Sales Proceeds to the City as set forth in Section 13 below.

CITY PURCHASE OPTION
Exercise of Option. If the Owner fails to sell the Home to an Eligible Purchaser at or below the Maximum Allowable Sales Price, the City shall then have the option to purchase the Home (the "City Option") for the City Option Purchase Price, as defined below. The City Option may be exercised by the City in the Second City Response Notice (as described in Section 11E above), to be sent by the City to the Owner within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser. If the Second City Response Notice states that the City will exercise the City Option, the City shall purchase the Home within seventy-five (75) days of the date of the Second City Response Notice. The City may, instead of purchasing the Home itself, assign its right to purchase the Home pursuant to the City Option to another public agency, a nonprofit corporation, or to an Eligible Purchaser. In the event of exercise of the City Option and purchase of the Home by the City or its designee, the Owner shall permit a final walk-through of the Home by the City in the final three (3) days prior to close of escrow on the Transfer.

City Option Price. If the City exercises the City Option, the purchase price to be paid by the City (the "City Option Purchase Price") shall be the highest of the following: (1) the outstanding principal balance of the First Mortgage Loan; (2) the total of the outstanding principal balance of the First Mortgage Loan and any purchase money second mortgage loan provided by a governmental body; or (3) the appraised value of the Home with the affordability covenants intact, as determined by an appraiser selected by the City and approved by the Owner, and who employs standard appraisal practices.

UNRESTRICTED SALES
If the Second City Response Notice states that the City will not exercise the City Option and that the Owner may proceed to Transfer the Home to a person of the Owner's choosing (a "Market Purchaser") who is not an Eligible Purchaser, at an unrestricted price (supported by an MAI or other qualified appraisal), the Owner may proceed to do so, but the Owner shall pay all Excess Sales Proceeds to the City as set forth in Section 14 below. If the Owner Transfers the Home pursuant to this Section 13, the purchaser shall not be required to execute a buyer's resale and occupancy agreement with option to purchase, and the City shall reconvey the liens of this Exhibit E

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Agreement and the City Deed of Trust from the Home, provided that the Owner pays the Excess Sales Proceeds to the City pursuant to Section 14 below. The Owner shall provide the City with the following documentation associated with such a Transfer:

The name and address of the purchaser;
The final sales contract and all other related documents, which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a) the sales price; and (b) the price to be paid by the Market Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any.

A written certification, from the Owner and the Market Purchaser in a form acceptable to the City that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to and approved by the City. The certification shall also provide that the Market Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Market Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the City. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the City, the City shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Market Purchaser for the return of any moneys paid or received in violation of this Agreement or for any costs and legal expenses, shall be borne by the Owner and/or the Market Purchaser and they shall hold the City and its designee harmless and reimburse their expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement.

A copy of the MAI or other qualified appraisal for the Home.

Upon the close of the proposed sale, a copy of the final sales contract, settlement statement, escrow instructions, and any other documents that the City may reasonably request.

PAYMENT TO CITY OF EXCESS SALES PROCEEDS
If the Owner Transfers the Home at an unrestricted price pursuant to Section 13 above, or if the Owner makes a Transfer in violation of this Agreement, the Owner shall pay the Excess Sales Proceeds to the City. For purposes of this Agreement, "Excess Sales Proceeds" shall mean ninety percent (90%) of the amount by which the Unrestricted Fair Market Value for the Home exceeds the Maximum Allowable Sales Price for the Home (in the amount that was stated in the First City Response Notice). This amount shall be a debt of the Owner to the City, secured by the City Deed of Trust. The Owner acknowledges that the City shall have no obligation to cause reconveyance of this Agreement or of the City Deed of Trust until the Excess Sales Proceeds are paid to the City. The City shall utilize the Excess Sales Proceeds for City affordable housing Exhibit E

dmv 04.12.22 22
programs. The Owner and the City acknowledge that the formula for calculation of the amount of Excess Sales Proceeds due from the Owner to the City is intended to cause the Owner to receive the same net sales proceeds (following payment by Owner of a standard broker's commission) from sale of the Home at an unrestricted price to an Market Purchaser as the Owner would receive from sale of the Home to the City or to an Eligible Purchaser at the Maximum Allowable Sales Price.

DEFAULTS
The following events shall constitute a Default by the Owner under this Agreement:

The City determines that the Owner has made a misrepresentation to obtain the benefits of purchase of the Home or in connection with its obligations under this Agreement;
The Owner fails to owner occupy the home, as required pursuant to Section 3 above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice.

The Owner makes a Transfer in violation of this Agreement; The Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to the satisfaction of the City within ten (10) days after the date of written notice by the City to the Owner of such violation; or A notice of default is issued under First Mortgage Loan or other financing secured by the Home.

A lien is recorded against the Home other than the lien of a bone fide mortgage loan.

Owner places a mortgage on the Home in violation of Section 24 below.

Upon a declaration of Default by the City under this Agreement, the City may exercise any remedies at law or in equity, including without limitation, any or all of the following:

Declare all Excess Sales Proceeds immediately due and payable without further demand and invoke the power of sale under the City Deed of Trust; Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate;
Exhibit E

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Declare a Default under the City Deed of Trust and pursue all City remedies under the City Deed of Trust; and
Exercise the City Purchase Option Upon Default as described in Section 17 below.

NOTICE OF DEFAULT AND FORECLOSURE
A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Home shall be recorded by the City in the Office of the Recorder of the County of Santa Cruz for the benefit of the City. The City may declare a Default under this Agreement upon receipt of any notice given to the City pursuant to Civil Code Section 2924b, and may exercise its rights as provided in Sections 15 and 17.

In the event of default and foreclosure, the City shall have the same right as the Owner to cure defaults and redeem the Home prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the City to cure any such default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage.

If the City failed to file the request for notice of default, the City's right to purchase the Home shall commence from the date a notice of default is given by the City to the Owner.

PURCHASE OPTION UPON DEFAULT
Notwithstanding, and in addition to, the remedies provided the City in Section 16, and the City Option provided to the City in Section 12, the Owner hereby grants to the City the option to purchase the Home following written notice by the City to the Owner of the declaration of a Default by the City under this Agreement. This option to purchase is given in consideration of the economic benefits received by the Owner resulting from ownership of the Home made possible by the City's Affordable Housing Program.

The City shall have thirty (30) days after a Default is declared to notify the Owner and the First Lender of its decision to exercise its option to purchase under this Section 17. Not later than ninety (90) days after the notice is given by the City to the Owner of the City's intent to exercise its option under this Section 17, the City shall purchase the Home for the City Option Price, payable in cash or by assuming existing debt and paying the balance in cash, calculated in the manner set forth in Section 12B.

NONLIABILITY OF THE CITY
No Obligation to Exercise Option. The City shall have no obligation to exercise any option granted it under this Agreement. In no event shall the City become in any way liable or obligated to the Owner or any successor-in-interest to the Owner by reason of its option to purchase under Sections 12 and 17 nor shall the City be in any way obligated or liable to the Exhibit E

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Owner or any successor-in-interest to the Owner for any failure to exercise its option to purchase.

Non-liability for Negligence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and the City is solely that of an owner and an administrator of a City affordable housing program, and that the City does not undertake or assume any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Home or any other matter. The City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Home and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Home and will hold the City harmless from any liability, loss or damage for these things.

Indemnity. Owner agrees to defend, indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys fees that the City may incur as a direct or indirect consequence of: (1) Owner's default, performance, or failure to perform any obligations as and when required by this Agreement or the Deed of Trust; or (2) the failure at any time of any of Owner's representations to the City to be true and correct.

RESTRICTIONS ON FORECLOSURE PROCEEDS
If a creditor acquires title to the Home through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the Maximum Allowable Sales Price. The Owner shall instruct the holder of such excess proceeds to pay such proceeds to the City in consideration of the benefits received by the Owner through purchase of the Home under the City's Affordable Housing Ordinance.

RESTRICTION ON INSURANCE PROCEEDS
If the Home is damaged or destroyed and the Owner elects not to rebuild or repair the Home, the Owner shall pay the City the portion of any insurance proceeds received by the Owner for such destruction or damage that is in excess of the Maximum Allowable Sales Price calculated pursuant to Section 10 above.

TERM OF AGREEMENT
All the provisions of this Agreement, including the benefits and burdens, run with the Home and this Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to the City and its successors, until the earlier of (i) forty-five (45) years from the date of purchase of the Home by Owner, or (ii) the date of Transfer of the Home to the City or another purchaser in compliance with this Agreement.

Exhibit E

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SUPERIORITY OF AGREEMENT
The Owner covenants that he or she has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions hereof, and that, in any event, this Agreement is controlling as to the rights and obligations between and among the Owner, the City and their respective successors.

SUBORDINATION
Notwithstanding any provision herein, this Agreement shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Home in compliance with Section 24 of this Agreement.

Notwithstanding any other provision hereof, the provisions of this Agreement and the City Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender, or such lender's assignee or successor in interest, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Agreement and the City Deed of Trust shall be forever terminated and shall have no further effect as to the Home or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquires title to the Home pursuant to a deed or assignment in lieu of foreclosure, this Agreement and the City Deed of Trust shall automatically terminate upon such acquisition of title, only if (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60)-day cure period and (ii) the City shall not have cured the default within such sixty (60)-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender, or (iii) the City shall not have exercised its option to purchase the Home pursuant to Section 17 above within such sixty (60)-day period and then proceeded diligently to cure the default within sixty (60) days of acquiring title to the Home.

REFINANCE OF FIRST MORTGAGE LOAN; FURTHER ENCUMBRANCE OF HOME
A. The Owner must secure the City’s approval in accordance with this Section 24 before the Owner refinances their existing First Mortgage Loan with a new First Mortgage Loan.

If the Owner desires to refinance their existing First Mortgage Loan and record a new First Mortgage Deed of Trust, the Owner must first submit a written request to the City, which the City will promptly consider. The City will approve the Owner’s refinancing request only if all of the following are true:
the new First Mortgage Loan principal balance will not exceed the greater of (a) the then-current principal balance of the existing First Mortgage Loan, or (b) ninety-five Exhibit E

dmv 04.12.22 26
percent (95%) of the Indexed Value of the Home, determined in accordance with Section 10A above;
(2) the Owner’s total monthly debt service (inclusive of principal, interest, taxes and insurance) with respect to the new First Mortgage Loan will not exceed the Owner’s current monthly debt service with respect to the existing First Mortgage Loan; (3) the terms of the new First Mortgage Loan do not allow for negative amortization, the principal balance of the new First Mortgage Loan will be fully amortized over its term, and the new First Mortgage Loan repayment schedule will not include lump sum or “balloon” payments;
(4) the Owner’s total monthly recurring debt payments (e.g., auto loans, credit cards, revolving and non-revolving credit), including the monthly debt service (inclusive of principal, interest, taxes and insurance) related to the new First Mortgage Loan, will not exceed fifty percent (50%) of the Owner’s gross monthly income; and (5) the Owner’s total monthly obligations with respect to debt which is secured by the Home, including the monthly debt service (inclusive of principal, interest, taxes and insurance) related to the new First Mortgage Loan, will not exceed fifty percent (50%) of the Owner’s gross monthly income.

B. The Owner will be responsible for demonstrating to the City’s sole but reasonable satisfaction that the new First Mortgage Loan will satisfy all of the conditions described in paragraph A. (1) – (5) above and/or the City’s current Affordable Housing Ordinance. The Owner will provide the City with the documents and other information needed to establish the matters set forth in paragraph A. (1) – (5) above and/or Affordable Housing Ordinance. If the City approves the Owner’s request, the City will execute and deliver the instruments reasonably required by the new First Mortgage Lender to subordinate this Agreement and the City Deed of Trust to the lien of the new First Mortgage Deed of Trust.

C. Even if the proposed new First Mortgage Loan satisfies all of the conditions described in paragraph A. (1) – (5), above, the City may, in its sole and absolute discretion, disapprove any request to refinance the Owner’s existing First Mortgage Loan if the term of the new First Mortgage Loan will be less than thirty (30) years.

D. The Owner covenants and agrees not to place any mortgage, lien or other encumbrance on the Home other than the original First Mortgage Deed of Trust, a deed of trust securing the Owner’s obligations to the City, or a new First Mortgage Deed of Trust approved by the City in accordance with this Section 24. The Owner agrees that the requirements of this Section 24 are reasonably necessary to ensure the continued affordability of the Home to the Owner, to minimize the risk of loss of the Home and its affordability through default and foreclosure of mortgages, liens and other encumbrances, and to fulfill an important public purpose. The Owner acknowledges that any violation of this Section 24 will constitute a Default under this Agreement and the City may exercise all remedies available to the City under this Agreement, the City Deed of Trust, at law or in equity upon such a Default.”

NONDISCRIMINATION
The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, Exhibit E

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color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Home, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Home. The foregoing covenant shall run with the land.

RIGHTS OF BENEFICIARIES UNDER DEEDS OF TRUSTS
This Agreement shall not diminish or affect the rights of the City under the City Deed of Trust.

Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall not diminish or affect the rights of the California Housing Finance Agency ("CHFA"), United States Department of Housing and Urban Development ("HUD"), the Federal National Mortgage Association ("FNMA"), or the Veterans Administration ("VA") under the First Mortgage Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Home in compliance with Section 24 above.

Notwithstanding any other provisions in this Agreement to the contrary, all of the provisions of this Agreement shall terminate and have no further force and effect upon the occurrence of one of the following events:

Title is acquired by CHFA, HUD, FNMA, VA, the First Lender or another party upon foreclosure of a deed of trust to the First Lender or CHFA, or a deed of trust insured by HUD or guaranteed by VA.

Title is acquired by another party by a deed in lieu of foreclosure of the First Lender, CHFA, or FNMA deed of trust.

HUD FORBEARANCE RELIEF
Notwithstanding other provisions of this Agreement, the City Option on Default pursuant to Section 17 above shall not be exercised by the City when a deed of trust insured by HUD is secured by the Home, and: (i) the owner is undergoing consideration by HUD for assignment forbearance relief; or (ii) the owner is undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment (TMAP) program.

INVALID PROVISIONS
If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

Exhibit E

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CONTROLLING LAW
The terms of this Agreement shall be interpreted under the laws of the State of California.

The venue for any legal action pertaining to this Agreement shall be Santa Cruz County, California.

NO WAIVER
No delay or omission in the exercise of any right or remedy of City upon any default by Owner shall impair such right or remedy or be construed as a waiver. The City's failure to insist in any one or more instance upon the strict observance of the terms of this Agreement shall not be considered a waiver of the City's right thereafter to enforce the provisions of the Agreement.

The City shall not waive its rights to enforce any provision of this Agreement unless it does so in writing, signed by an authorized agent of the City.

NOTICES
All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective as of the date received or the date delivery was refused as indicated on the return receipt as follows:

Owner: At the address of the Home. City: City of Watsonville 275 Main Street, 4th Floor
Watsonville, CA 95076
Attn: City Clerk

City of Watsonville
250 Main St
Watsonville, Ca 95076
Attn: Affordable Housing Program
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.

INTERPRETATION OF AGREEMENT
The terms of this Agreement shall be interpreted so as to avoid speculation on the Home and to insure to the extent possible that its sales price and mortgage payments remain affordable to persons and families of low- and/or moderate-income.

EXHIBITS
Any exhibits referred to in this Agreement are incorporated in this Agreement by such reference.

Exhibit E

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IN WITNESS WHEREOF, the City and Owner(s) have executed this Agreement on or as of the date first written above.

CITY: ________________________________ OWNER(S): ________________________ Tamara Vides, City Manager Pro Tempore
_______________________
Exhibit E

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Exhibit A
Legal Description
Exhibit E

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Exhibit E
Form of Deed of Trust
Complimentary Recording Requested
Pursuant To Government Code
Sections 6103 And 27383
When Recorded Mail To:

City of Watsonville
275 Main St., 4th Floor
Watsonville, CA 95076
Attn: Affordable Housing Program

DEED OF TRUST

AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust") made on _____________, ________, among the Trustor, ____________________. ("Owner"), whose address is __________________,Watsonville, California, and City of Watsonville, a Municipal Corporation, and the City of Watsonville in its capacity as Successor for Housing Functions of its dissolved Redevelopment Agency ("Trustee"), in favor of the City of Watsonville and the City of Watsonville in its capacity as Successor for Housing Functions of its dissolved Redevelopment Agency (the "City") as Beneficiary.

The Owner, in consideration of the promises herein recited and the trust herein created, irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with power of sale, the property located in the City of Watsonville, Santa Cruz County, State of California, described as Refer to Exhibit “A”

and more commonly known as ________________, Watsonville, California, APN:
__________________ (the "Property").

TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, and all fixtures now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and
TOGETHER with all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, Exhibit E

dmv 04.12.22 32
and all renewals or replacements thereof or articles in substitution therefore, whether or not the same are, or shall be attached to said building or buildings in any manner; and all of the foregoing, together with the Property, is herein referred to as the "Security"; To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever;
TO SECURE to the City the performance of the covenants and agreements of Owner contained in that certain Buyer's Occupancy and Resale Agreement with Option to Purchase executed by and between the Owner and the City of even date herewith (the "Resale Agreement") and to secure the payment of Excess Sales Proceeds (as defined in the Resale Agreement) that may become due by Owner to City.

TO SECURE the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Deed of Trust; and the performance of the covenants and agreements of Owner herein contained.

OWNER AND CITY COVENANT AND AGREE AS FOLLOWS:

Owner's Estate. That Owner is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) that deed of trust executed by Owner in connection with a loan made to Owner by _________________________ (the "First Lender"), securing a promissory note executed by Owner in favor of the First Lender ("First Lender Note"), to assist in the purchase of the Property and (b) the Resale Agreement. Owner agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the City's interest in the Security. (As used in this Deed of Trust, the term "First Lender" shall include all successors and assigns of the First Lender.) Payment of Excess Sales Proceeds. Owner will promptly pay to the City, when and if due pursuant to the Resale Agreement, the Excess Sales Proceeds (as defined in the Resale Agreement).

Resale Agreement. Owner will observe and perform all of the covenants and agreements of the Resale Agreement.

Charges; Liens. Owner will pay all taxes, assessments and other charges, fines and impositions attributable to the Security which may attain a priority over this Deed of Trust, by Owner making any payment, when due, directly to the payee thereof. Upon request by the City, Owner will promptly furnish to the City all notices of amounts due under this paragraph. In the event Owner makes payment directly, Owner will promptly discharge any lien which has priority over this Deed of Trust; provided, that Owner will not be required to discharge the lien of the Deed of Trust securing the First Lender Note (the "First Lender Deed of Trust") or any other lien described in this paragraph so long as Owner will agree in writing to the payment of the obligation secured by such lien in a manner acceptable to the City, or will, in good faith, contest Exhibit E

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such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Security or any part thereof.

Hazard Insurance. Owner will keep the Security insured by a standard all risk property insurance policy equal to the replacement value of the Security (adjusted every five (5) years by appraisal, if requested by the City). If the Security is located in a flood plain, Owner shall also maintain flood insurance.

The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by Owner subject to approval by the City.

All insurance policies and renewals thereof will be in a form acceptable to the City and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of the First Lender Note and the City as their interests may appear and in a form acceptable to the City. The City shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Owner shall promptly furnish to the City, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Owner will give prompt notice to the insurance carrier and the City or its designated agent. The City, or its designated agent, may make proof of loss if not made promptly by Owner. The City shall receive thirty (30) days advance notice of cancellation of any insurance policies required under this section.

Unless the City and Owner otherwise agree in writing, insurance proceeds, subject to the rights of the First Lender, will be applied to restoration or repair of the Security damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds will be used to repay any amounts due under the Resale Agreement, with the excess, if any, paid to Owner. If the Security is abandoned by Owner, or if Owner fails to respond to the City, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Owner that the insurance carrier offers to settle a claim for insurance benefits, the City, or its designated agent, is authorized to collect and apply the insurance proceeds at the City's option either to restoration or repair of the Security or to pay amounts due under the Resale Agreement.

If the Security is acquired by the City, all right, title and interest of Owner in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed of Trust immediate prior to such sale or acquisition, subject to the rights of the First Lender.

Preservation and Maintenance of Security. Owner will keep the Security in good repair and in a neat, clean, and orderly condition and will not commit waste or permit impairment or deterioration of the Security. If there arises a condition in contravention of this Section 5, and if the Owner has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Security to recover its cost of curing.

Exhibit E

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Protection of the City's Security. If Owner fails to perform the covenants and agreements contained in this Deed of Trust or if any action or proceeding is commenced which materially affects the City's interest in the Security, including, but not limited to, default under the First Lender Deed of Trust, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at the City's option, upon notice to Owner, may make such appearances, disburse such sums and take such action as it determines necessary to protect the City's interest, including but not limited to, disbursement of reasonable attorney's fees and entry upon the Security to make repairs.

Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will become an indebtedness of Owner secured by this Deed of Trust. Unless Owner and City agree to other terms of payment, such amount will be payable upon notice from the City to Owner requesting payment thereof, and will bear interest from the date of disbursement at the lesser of (i) ten percent (10%); or (ii) the highest rate permissible under applicable law. Nothing contained in this paragraph will require the City to incur any expense or take any action hereunder.

Inspection. The City may make or cause to be made reasonable entries upon and inspections of the Security; provided that the City will give Owner reasonable notice of inspection.

Forbearance by the City Not a Waiver. Any forbearance by the City in exercising any right or remedy will not be a waiver of the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by the City will not be a waiver of the City's right to require payment of any amounts secured by this Deed of Trust.

Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively.

Successors and Assigns Bound. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the City and Owner subject to the provisions of this Deed of Trust.

Joint and Several Liability. All covenants and agreements of Owner shall be joint and several.

Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Owner provided for in this Deed of Trust will be given by certified mail, addressed to Owner at the address shown in the first paragraph of this Deed of Trust or such other address as Owner may designate by notice to the City as provided herein, and (b) any notice to the City will be given by express delivery, return receipt requested, to the City of Watsonville at P. O. Box 50000, Watsonville, California, 95007-5000, Attention: City Manager, or to such other address as the City may designate by notice to Owner as provided above. Notice shall be effective as of the date received by City as shown on the return receipt.

Exhibit E

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Governing Law. This Deed of Trust shall be governed by the laws of the State of California.

Severability. In the event that any provision or clause of this Deed of Trust or the Resale Agreement conflicts with applicable law, such conflict will not affect other provisions of this Deed of Trust or the Resale Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Deed of Trust and the Resale Agreement are declared to be severable.

Captions. The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof.

Nondiscrimination. The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Home. The foregoing covenant shall run with the land.

Nonliability for Negligence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and City is solely that of an owner and an administrator of a City density bonus program, and that City neither undertakes nor assumes any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Security or any other matter. City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Security and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against City for any loss, damage or other matter arising out of or resulting from any condition of the Security and will hold City harmless from any liability, loss or damage for these things.

Indemnity. Owner agrees to defend, indemnify, and hold City and Agency harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys fees that City and Agency may incur as a direct or indirect consequence of:

Owner's failure to perform any obligations as and when required by the Resale Agreement and this Deed of Trust; or
the failure at any time of any of Owner's representations or warranties to be true and correct.

Acceleration; Remedies. Upon Owner's breach of any covenant or agreement of Owner in this Deed of Trust, including, but not limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the City, prior to acceleration, will mail by express delivery, return receipt requested notice to Owner specifying; (1) the breach; (2) the action required to Exhibit E

dmv 04.12.22 36
cure such breach; (3) a date, not less than thirty (30) days from the date the notice is received by Owner as shown on the return receipt, by which such breach is to be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Security. The notice will also inform Owner of Owner's right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of default or any other defense of Owner to acceleration and sale. If the breach is not cured on or before the date specified in the notice, the City, at the City's option, may:
(a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by California law. (b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and, notwithstanding the continuance in possession of the Security, the City shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including the right to exercise the power of sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924, et seq., as amended from time to time; or (e) exercise all other rights and remedies provided herein, in the instruments by which the Owner acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.

The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees.

Owner's Right to Reinstate. Notwithstanding the City's acceleration of the sums secured by this Deed of Trust, Owner will have the right to have any proceedings begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Owner pays City all sums which would be then due under this Deed of Trust and no acceleration under this Deed of Trust or the Resale Agreement has occurred; (b) Owner cures all breaches of any other covenants or agreements of Owner contained in the Resale Agreement or this Deed of Trust; (c) Owner pays all reasonable expenses incurred by City and Trustee in enforcing the covenants and agreements of Owner contained in the Resale Agreement or this Deed of Trust, and in enforcing the City's and Trustee's remedies, including, but not limited to, reasonable attorney's fees; and (d) Owner takes such action as City may reasonably require to assure that the lien of this Deed of Trust, City's interest in the Security and Owner's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Owner, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.

Exhibit E

dmv 04.12.22 37
Due on Transfer of the Property. Upon a Transfer (as defined in the Resale Agreement) of the Property or any interest in it, the City shall require immediate payment in full of all sums secured by this Deed of Trust.

Reconveyance. Upon payment of all sums secured by this Deed of Trust, the City will request Trustee to reconvey the Security and will surrender this Deed of Trust and the Resale Agreement to Trustee. Trustee will reconvey the Security without warranty and without charge to the person or persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any.

Substitute Trustee. The City, at the City's option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law.

Superiority of First Lender Documents. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Security in compliance with the requirements of Section 24 of the Resale Agreement. City agrees to promptly upon request execute and deliver any documents reasonably requested to subordinate this Deed of Trust to any subsequent First Lender Deed of Trust permitted by Section 24 of the Resale Agreement.

Notwithstanding any other provision hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender, or such lender's assignee or successor in interest, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in lieu of foreclosure, this Deed of Trust shall automatically terminate upon such acquisition of title by First Lender, provided that (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60)-day cure period and (ii) the City shall not have cured or commenced to cure the default within such sixty (60)-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender; or (iii) the City shall not have exercised its option to purchase the Property pursuant to Section 17 of the Resale Agreement and then proceeded diligently to cure the default within such sixty (60)-day period.

Request for Notice. Owner requests that copies of the notice of default and notice of sale be sent to Owner at the address set forth in Section 13 above.

Exhibit E

dmv 04.12.22 38
IN WITNESS WHEREOF, the City and Owner have executed this Deed Of Trust as of the date first written above.

CITY: ________________________________ OWNER(S): ________________________ Tamara Vides, City Manager Pro Tempore
Exhibit E

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ADDRESS
JOB NO.

DATE

SHEET OF
APN
GS 04/14/2022
510 OHLONE PARKWAY, WATSONVILLE, CALIFORNIA
20-021 018-372-14
NOTE: SEWER, WATER, AND ELECTRIC LATERAL
LINES ARE NOT SHOWN FOR CLARITY.

LATERALS WILL BE INSTALLED TO SERVICE THE
UNITS WITHIN THIS STAGE OF CONSTRUCTION.
1"=150' 1 5
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SCALE
DRAWN

ADDRESS
JOB NO.

DATE

SHEET OF
APN
GS 04/14/2022
510 OHLONE PARKWAY, WATSONVILLE, CALIFORNIA
20-021 018-372-14
1"=150' 2
STAGE 2 - UTILITIES MAP

SD SD UTILITIES
STORM

SS SS SEWER

W W WATER

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NOTE: SEWER, WATER, AND ELECTRIC LATERAL
LINES ARE NOT SHOWN FOR CLARITY.

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UNITS WITHIN THIS STAGE OF CONSTRUCTION.
5 Exhibit J

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69 68
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74 112
113
76 110
111
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105 118
117
116
115 114
SCALE
DRAWN

ADDRESS
JOB NO.

DATE

SHEET OF
APN
GS 04/14/2022
510 OHLONE PARKWAY, WATSONVILLE, CALIFORNIA
20-021 018-372-14
STAGE 3 - UTILITIES MAP

SD SD UTILITIES
STORM

SS SS SEWER

W W WATER

FW FW FIRE

JT JT JOINT TRENCH
NOTE: SEWER, WATER, AND ELECTRIC LATERAL
LINES ARE NOT SHOWN FOR CLARITY.

LATERALS WILL BE INSTALLED TO SERVICE THE
UNITS WITHIN THIS STAGE OF CONSTRUCTION.
1"=150' 3 6
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1 2
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7 8
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11 1213
14 15
16 20
19 18
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103
102
101
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70 69
68 67
75 74
112
113
76 110
111
108
109
106
107
104
105 118
117
116
115 114
SCALE
DRAWN

ADDRESS
JOB NO.

DATE

SHEET OF
APN
GS 04/14/2022
510 OHLONE PARKWAY, WATSONVILLE, CALIFORNIA
20-021 018-372-14
1"=150' 4
STAGE 4 - UTILITIES MAP

SD SD UTILITIES
STORM

SS SS SEWER

W W WATER

FW FW FIRE

JT JT JOINT TRENCH
NOTE: SEWER, WATER, AND ELECTRIC LATERAL
LINES ARE NOT SHOWN FOR CLARITY.

LATERALS WILL BE INSTALLED TO SERVICE THE
UNITS WITHIN THIS STAGE OF CONSTRUCTION.
5 Exhibit J

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1 2
3 4
5 6
7 8
9 10
11 1213
14 15
16 20
19 18
17 25
24 23
22 21
29 28
27 26
30 39
40 41
42 43
62 63
64 65
66 35
36 37
38 120
119
31 32
33 34
122
121
124
123
126
125
128
127
130
129
45 44
46 47
142
143
144
50 49
48 139
140
141
138
135
136
137
134
132
133
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58 59
60 61
53 54
55 51
52 92
93 91
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90 86
87 84
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81 82
83 79
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97 96
100
99 98
103
102
101
73 72
71 70
69 68
67 75
74 112
113
76 110
111
108
109
106
107
104
105 118
116
117
115 114
SCALE
DRAWN

ADDRESS
JOB NO.

DATE

SHEET OF
APN
GS 04/14/2022
510 OHLONE PARKWAY, WATSONVILLE, CALIFORNIA
20-021 018-372-14
STAGE 5 - UTILITIES MAP

SD SD UTILITIES
STORM

SS SS SEWER

W W WATER

FW FW FIRE

JT JT JOINT TRENCH
NOTE: SEWER, WATER, AND ELECTRIC LATERAL
LINES ARE NOT SHOWN FOR CLARITY.

LATERALS WILL BE INSTALLED TO SERVICE THE
UNITS WITHIN THIS STAGE OF CONSTRUCTION.
1"=150' 5 5
Exhibit J

4/22/22, 4:46 PM City of Watsonville Mail - Fwd: Response to Renewed Remedial Action Plan (2022), Hillcrest Development, 511 Ohlone Pkwy, Wa… https://mail.google.com/mail/u/0/?ik=b11e076089&view=pt&search=all&permthid=thread-f%3A1730850189043090366&simpl=msg-f%3A1730850189… 1/2 Irwin Ortiz <[email protected]>
Fwd: Response to Renewed Remedial Action Plan (2022), Hillcrest Development, 511 Ohlone Pkwy, Watsonville, Santa Cruz County
1 message
Justin Meek <[email protected]> Fri, Apr 22, 2022 at 3:42 PM To: Irwin Ortiz <[email protected]>
Cc: Suzi Merriam <[email protected]>, Deborah Muniz <[email protected]>, Samantha Zutler <[email protected]>
Irwin,
Please upload the attached letter from CSCEHD regarding the Renewed RAP (2022).

Justin
---------- Forwarded message ---------
From: Heather Hanna <[email protected]>
Date: Fri, Apr 22, 2022 at 3:35 PM
Subject: Response to Renewed Remedial Action Plan (2022), Hillcrest Development, 511 Ohlone Pkwy, Watsonville, Santa Cruz County
To: [email protected] <[email protected]>, Greg Caput <[email protected]>, [email protected] <[email protected]>, [email protected] <[email protected]>, Tony Gregorio <[email protected]>, Pat Hoban <pat@weberhayes.com>, Lanphar, Tom@DTSC <[email protected]>, Justin Meek <[email protected]>, David Caneer <[email protected]>, (Wat-Planning) Suzi Merriam <suzi.merriam@ cityofwatsonville.org>, Mitcham, Chad J <[email protected]>, [email protected] <[email protected]>, [email protected] <[email protected]>, John Gerbrandt <[email protected]>, Lisa Li <[email protected]>, [email protected] <[email protected]> Please see attached response letter for the Renewed Remedial Action Plan (2022) for the Hillcrest Development located at 511 Ohlone Pkwy, Santa Cruz County.

Sincerely,
Heather Hanna, P.G.

Resource Planner, Environmental Cleanup
County of Santa Cruz Health Services Agency - Environmental Health Division 701 Ocean Street, Suite 312, Santa Cruz, California 95060 Phone: (831) 454-4813 – Cell: (831) 566-5403 - Website: http://www.scceh.com/

4/22/22, 4:46 PM City of Watsonville Mail - Fwd: Response to Renewed Remedial Action Plan (2022), Hillcrest Development, 511 Ohlone Pkwy, Wa… https://mail.google.com/mail/u/0/?ik=b11e076089&view=pt&search=all&permthid=thread-f%3A1730850189043090366&simpl=msg-f%3A1730850189… 2/2 511OhlonePkwy.2022.04.20.RAPRvwLttr.pdf
314K

County of Santa Cruz
Health Services Agency  Environmental Health
701 Ocean Street, Room 312, Santa Cruz, CA 95060
(831) 454-2022 TDD/TTY -Call 711 www.scceh.com
[email protected]
April 22, 2022
California Sunshine Development, LLC
c/o Ms. Lisa Li and Mr. John Frey
444 Airport Boulevard
Watsonville, California 95076
EMAIL: [email protected]
EMAIL: [email protected]
SUBJECT: Response to Renewed Remedial Action Plan (2022), Former Clusters Storage Yard (Proposed Hillcrest Development), (GeoTracker Global ID T10000018717), 511 Ohlone Parkway, Watsonville, CA
Dear Ms. Li and Mr. Frey:

The County of Santa Cruz Environmental Health Division (CSCEHD) has reviewed the following document for the subject site: (1) Renewed Remedial Action Plan (2022) (Revised Updated RAP, dated February 18, 2022, revised March 18, 2022, by Weber, Hayes & Associates [WHA]). Thank you for the submittal.

The Revised Updated RAP was modified by WHA pursuant to the CSCEHD letter dated September 16, 2021, which required the RAP to provide (1) adequate design plans for the cap which includes retaining impacted soil via mechanically stabilized earth and an engineered block wall and (2) long-term stewardship requirements based on state guidance for the remedial technologies of metals in soil (DTSC, 2008). It is our understanding the City of Watsonville has reviewed the design plans for the cap included in the Revised Updated RAP and is in the process of approving the plans.

Our agency concurs in principle with the work plan as long as the following conditions are met:
• The Revised Updated RAP included a draft regulatory remedial action agreement, but the agreement did not reference a contingency plan or an Operation and Monitoring (O&M) plan. Therefore, a contingency plan (addressing response actions in the event the cap fails) and an O&M plan is required to be submitted to our agency.
• You are required to notify our agency of any changes to the cap design due to site conditions revealed during construction. Our agency must approve any design modifications that affect the burial of the capped impacted soil prior to field implementation. • In accordance with Title 23 of the California Code of Regulations, you are required to complete Electronic Submittal of Information (ESI) reporting for all applicable documents and data, including data in Electronic Deliverable Format (EDF), to the SWRCB GeoTracker electronic data

2 management system. Refer to the GeoTracker web page for electronic reporting requirements at https://www.waterboards.ca.gov/ust/electronic_submittal/index.html. • Please note as of January 1, 2022, the California Health and Safety Code (HSC) Section 101480 has been updated. In accordance with HSC 101480, 30 days prior to issuing any letter certifying cleanup goals have been achieved and remedial actions have been completed at an environmental cleanup site, a public notice must be issued to the Department of Toxic Substances Control (DTSC), the California Central Coast Regional Water Quality Control Board (CCRWQCB), agencies with authority to issue building permits for land affected by the waste release, owners and occupants of the property impacted by the waste release, and the owners and occupants of all parcels adjacent to the waste release site and posted to the SWRCB’s GeoTracker database under the global identification number established for the site, at minimum.

You are responsible for having the following documents submitted to our agency and GeoTracker ninety (90) days prior to occupancy: (1) a report detailing the implementation and completion of remedial action; (2) an O&M plan for post-construction site management containing a contingency plan should the cap fail; (3) completed financial assurance documentation for long-term monitoring and maintenance of the cap; and (4) a regulatory oversight agreement with the entity that will be periodically submitting O&M documentation to our agency on behalf of the development’s future occupants. The agency approved O&M plan along with the completed financial assurance documentation and an executed regulatory oversight agreement is required to be included in a Land Use Covenant for the site, which must be recorded with the County of Santa Cruz’s Recorder’s Office prior to occupancy. The copy for our agency should be submitted electronically directly to my email ([email protected]).

If you have any comments or questions regarding this letter, you may contact me at the above email address or at (831) 454-2731, 8:00 a.m. to 9:30 a.m., Monday through Friday.

Sincerely,
John B. Gerbrandt, P.G., R.E.H.S.

Professional Geologist
County of Santa Cruz Health Services Agency
Environmental Health Division
Environmental Cleanup Program
701 Ocean Street, Suite 312
Santa Cruz, CA 95060

3 Cc: Senator John Laird, ([email protected]) Supervisor Greg Caput, ([email protected])
Mr. Greg Bishop, CCRWQCB ([email protected]) Ms. Angela M. Chesnut, Senator John Larid’s Office ([email protected]) Mr. Tony Gregorio, Analyst, Supervisor Caput, County of Santa Cruz ([email protected])
Mr. Pat Hoban, WHA ([email protected])
Mr. Tom Lanphar, DTSC ([email protected])
Mr. Justin Meek, City of Watsonville, Building and Planning ([email protected])
Ms. Suzi Merriam, City of Watsonville, Community Development Department Director ([email protected])
Mr. Chad Mitcham, USFWS ([email protected])
Mr. Steve Palmisano, City of Watsonville, Public Works & Utilities Director ([email protected])
Ms. Julie Pettijohn, DTSC ([email protected]) Reference:

California Department of Toxic Substances Control (DTSC). 2008. Proven Technologies and Remedies Guidance, Remediation of Metals in Soil, August 29, 2008, 420 p. https://dtsc.ca.gov/proven-technologies-remedies-documents/

County of Santa Cruz
Health Services Agency  Environmental Health
701 Ocean Street, Room 312, Santa Cruz, CA 95060
(831) 454-2022 TDD/TTY -Call 711 www.scceh.com
[email protected]
April 22, 2022
California Sunshine Development, LLC
c/o Ms. Lisa Li and Mr. John Frey
444 Airport Boulevard
Watsonville, California 95076
EMAIL: [email protected]
EMAIL: [email protected]
SUBJECT: Response to Renewed Remedial Action Plan (2022), Former Clusters Storage Yard (Proposed Hillcrest Development), (GeoTracker Global ID T10000018717), 511 Ohlone Parkway, Watsonville, CA
Dear Ms. Li and Mr. Frey:

The County of Santa Cruz Environmental Health Division (CSCEHD) has reviewed the following document for the subject site: (1) Renewed Remedial Action Plan (2022) (Revised Updated RAP, dated February 18, 2022, revised March 18, 2022, by Weber, Hayes & Associates [WHA]). Thank you for the submittal.

The Revised Updated RAP was modified by WHA pursuant to the CSCEHD letter dated September 16, 2021, which required the RAP to provide (1) adequate design plans for the cap which includes retaining impacted soil via mechanically stabilized earth and an engineered block wall and (2) long-term stewardship requirements based on state guidance for the remedial technologies of metals in soil (DTSC, 2008). It is our understanding the City of Watsonville has reviewed the design plans for the cap included in the Revised Updated RAP and is in the process of approving the plans.

Our agency concurs in principle with the work plan as long as the following conditions are met:
• The Revised Updated RAP included a draft regulatory remedial action agreement, but the agreement did not reference a contingency plan or an Operation and Monitoring (O&M) plan. Therefore, a contingency plan (addressing response actions in the event the cap fails) and an O&M plan is required to be submitted to our agency.
• You are required to notify our agency of any changes to the cap design due to site conditions revealed during construction. Our agency must approve any design modifications that affect the burial of the capped impacted soil prior to field implementation. • In accordance with Title 23 of the California Code of Regulations, you are required to complete Electronic Submittal of Information (ESI) reporting for all applicable documents and data, including data in Electronic Deliverable Format (EDF), to the SWRCB GeoTracker electronic data

2 management system. Refer to the GeoTracker web page for electronic reporting requirements at https://www.waterboards.ca.gov/ust/electronic_submittal/index.html. • Please note as of January 1, 2022, the California Health and Safety Code (HSC) Section 101480 has been updated. In accordance with HSC 101480, 30 days prior to issuing any letter certifying cleanup goals have been achieved and remedial actions have been completed at an environmental cleanup site, a public notice must be issued to the Department of Toxic Substances Control (DTSC), the California Central Coast Regional Water Quality Control Board (CCRWQCB), agencies with authority to issue building permits for land affected by the waste release, owners and occupants of the property impacted by the waste release, and the owners and occupants of all parcels adjacent to the waste release site and posted to the SWRCB’s GeoTracker database under the global identification number established for the site, at minimum.

You are responsible for having the following documents submitted to our agency and GeoTracker ninety (90) days prior to occupancy: (1) a report detailing the implementation and completion of remedial action; (2) an O&M plan for post-construction site management containing a contingency plan should the cap fail; (3) completed financial assurance documentation for long-term monitoring and maintenance of the cap; and (4) a regulatory oversight agreement with the entity that will be periodically submitting O&M documentation to our agency on behalf of the development’s future occupants. The agency approved O&M plan along with the completed financial assurance documentation and an executed regulatory oversight agreement is required to be included in a Land Use Covenant for the site, which must be recorded with the County of Santa Cruz’s Recorder’s Office prior to occupancy. The copy for our agency should be submitted electronically directly to my email ([email protected]).

If you have any comments or questions regarding this letter, you may contact me at the above email address or at (831) 454-2731, 8:00 a.m. to 9:30 a.m., Monday through Friday.

Sincerely,
John B. Gerbrandt, P.G., R.E.H.S.

Professional Geologist
County of Santa Cruz Health Services Agency
Environmental Health Division
Environmental Cleanup Program
701 Ocean Street, Suite 312
Santa Cruz, CA 95060

3 Cc: Senator John Laird, ([email protected]) Supervisor Greg Caput, ([email protected])
Mr. Greg Bishop, CCRWQCB ([email protected]) Ms. Angela M. Chesnut, Senator John Larid’s Office ([email protected]) Mr. Tony Gregorio, Analyst, Supervisor Caput, County of Santa Cruz ([email protected])
Mr. Pat Hoban, WHA ([email protected])
Mr. Tom Lanphar, DTSC ([email protected])
Mr. Justin Meek, City of Watsonville, Building and Planning ([email protected])
Ms. Suzi Merriam, City of Watsonville, Community Development Department Director ([email protected])
Mr. Chad Mitcham, USFWS ([email protected])
Mr. Steve Palmisano, City of Watsonville, Public Works & Utilities Director ([email protected])
Ms. Julie Pettijohn, DTSC ([email protected]) Reference:

California Department of Toxic Substances Control (DTSC). 2008. Proven Technologies and Remedies Guidance, Remediation of Metals in Soil, August 29, 2008, 420 p. https://dtsc.ca.gov/proven-technologies-remedies-documents/

4/26/22, 12:12 PM City of Watsonville Mail - 12B Development Agreement for Hillcrest Estates https://mail.google.com/mail/b/ALGkd0wVK9KD0FIF_DQDQMKb-xPU4gfjm6wa0K7cIDUHf2RkBhnN/u/0/?ik=75b13c09ef&view=pt&search=all&permt… 1/1 City Council <[email protected]>
12B Development Agreement for Hillcrest Estates
1 message
Jovita Quezada <[email protected]> Sun, Apr 24, 2022 at 1:50 PM To: [email protected]
12B PUBLIC COMMENT
To Mayor Parker, City Council and Staff,
On Easter Sunday I was enjoying my grandchildren Easter Egg Hunt on the Seaview Ranch Casitas community lawn when I noticed a sign that was tilted on a bush (I understand it was put on Good Friday). If they put a road on the community lawn there's will be no more community gathering for the La Casitas residence since there's no playground.

I noticed the list of chemicals on the contaminated soil. It's very alarming what the chemical can do to the Wetland Slough and the residences surrounding the Cluster's Car Junkyard if they bury the contaminated soil in a pit with a cement cap along the fence. I'm very concerned that if there's a earthquake it can crack or damage the cement cap which will affect the Wetland Slough and the surrounding residences. According to Volcano Discovery in the past earthquakes in CA, USA: January 1 - April 22, 2022.
*12 quakes about magnitude 4
*156 quakes between magnitude 3 and 4
*1019 quakes between magnitude 2 and 3
*12868 quakes below magnitude 2 that people normally don't feel Thank you,
Jovita Quezada
6 Paraiso Court

4/26/22, 12:15 PM City of Watsonville Mail - City Council Meeting - 04/26/2022 - Agenda Item 12.b https://mail.google.com/mail/b/ALGkd0wVK9KD0FIF_DQDQMKb-xPU4gfjm6wa0K7cIDUHf2RkBhnN/u/0/?ik=75b13c09ef&view=pt&search=all&permt… 1/1 City Council <[email protected]>
City Council Meeting - 04/26/2022 - Agenda Item 12.b
1 message
Noriko Ragsac <[email protected]> Mon, Apr 25, 2022 at 3:08 PM To: [email protected]
Cc: [email protected], BOB CULBERTSON <[email protected]>, Lisa D <[email protected]> Good Afternoon,
Attached are 93 signatures from community members and the SeaView Ranch Casita's residents.

Please consider taking more time to understand the dangerous impacts that the Hillcrest Estates development agreement will have for our neighborhood.

Especially to bury toxic soil in a 35 foot deep pit that was not properly designed for potential collapse into the slough and my backyard.

Respectfully,
Noriko Ragsac
Signatures for Letter-4.25.2022.pdf
518K

4/26/22, 12:17 PM City of Watsonville Mail - Santa Cruz Sentinel Article on Hillcrest Estates https://mail.google.com/mail/b/ALGkd0wVK9KD0FIF_DQDQMKb-xPU4gfjm6wa0K7cIDUHf2RkBhnN/u/0/?ik=75b13c09ef&view=pt&search=all&permt… 1/1 City Council <[email protected]>
Santa Cruz Sentinel Article on Hillcrest Estates
1 message
Noriko Ragsac <[email protected]> Mon, Apr 25, 2022 at 8:53 PM To: [email protected]
Cc: [email protected], BOB CULBERTSON <[email protected]>, Lisa D <[email protected]> Good Evening,
Attached is an article for your review.

Tomorrow we will discuss the city’s significant liability. cc: Legal File
Watsonville_ Hillcrest Estate residents could be liable for soil contamination issu es – Santa Cruz Sentinel.pdf
1982K

By HANNAH HAGEMANN | [email protected] |
Santa Cruz Sentinel
PUBLISHED: April 25, 2022 at 5:06 p.m. | UPDATED: April 25, 2022 at 5:21 p.m.

Hillcrest estate homes are shown in a video rendering. (Hillcrest Estate Rendering)
NEWSENVIRONMENT
Watsonville: Hillcrest Estate
residents could be liable for soil
contamination issues
City Council to vote on a “development agreement”
during a Tuesday meeting

p.m.

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Hannah Hagemann
Hannah Hagemann covers environment, water, wildfire
impacts and all things south county for the Santa Cruz
Sentinel. Hagemann has a master's in science journalism from UC Santa Cruz and recently earned her Type II Wildland Firefighting certification. She lives with her fiancé and cat in Felton. [email protected]
 Follow Hannah Hagemann @hannah_hagemann
Tags: Newsletter

4/26/22, 12:18 PM City of Watsonville Mail - Development Agreement for Hillcrest Estates https://mail.google.com/mail/b/ALGkd0wVK9KD0FIF_DQDQMKb-xPU4gfjm6wa0K7cIDUHf2RkBhnN/u/0/?ik=75b13c09ef&view=pt&search=all&permt… 1/1 City Council <[email protected]>
Development Agreement for Hillcrest Estates
1 message
Donna Bradford <[email protected]> Tue, Apr 26, 2022 at 3:45 AM To: [email protected], [email protected] Dear Mayor and Council Members,
In regards to the April 26, 2022 Agenda Item 12.b - Development Agreement for Hillcrest Estates, I submit on behalf of Watsonville Wetlands Watch the attached letter of comments on Appendix G included in the staff report.

Sincerely,
Donna Bradford, President
Board of Directors
Watsonville Wetlands Watch
831.254-0614
Hillcrest Estates Ltr t Council 4-25-22-2.docx
83K

Watsonville Wetlands Watch
P.O. Box 1239 • Freedom, CA 95019
www.watsonvillewetlandswatch.org
“Dedicated to protecting, restoring and appreciating the wetlands of the Pajaro Valley” April 25, 2022
Mayor Parker and Members of the City Council
City of Watsonville
250 Main Street
Watsonville, CA 95076
SUBJECT: April 26, 2022 Agenda Item 12.b - Hillcrest Estates Project Dear Mayor and Council Members,
As a steward of Watsonville Slough which adjoins the site of the Hillcrest Estates Project, Watsonville Wetlands Watch believes the project should be approved in a manner that ensures the contaminated soils proposed to be buried at the project site will not contaminate the slough over the long-term.

Our Board members have reviewed Appendix G to the staff report, titled “Model Land Use Covenant Template (deed restriction) Financial Assurance Details, and Soil Management Plan”. We have the following concerns regarding the content of this part of the staff report. • No actual deed restriction has been prepared for the properties encumbered by the burial pit for contaminated soils. Rather, Appendix G only provides a sample deed restriction that was used as a template for another project in Santa Cruz (city).
• No document providing financial assurances for long-term monitoring (or emergency remediation) has been provided. Rather, a guide on how to establish such financial assurances, authored by the State's Department of Toxic Substances Control, is included in this Appendix. • No Remedial Action Agreement with the County has been established to guide future actions in case toxic discharges from the burial pit are discovered in the future. Rather, a 2-1/2 page letter from County of Santa Cruz Environmental Health, regarding another project in Santa Cruz (city), is provided to prescribe how an Agreement of this type should be prepared. • Most surprisingly, there is no long-term "soil management plan" or monitoring plan even though the term "soil management plan" is included in the title of Appendix G.

The omission of these preceding four (4) important documents, specific to the Hillcrest Estate Project, misleads the public into a false confidence that long-term maintenance and monitoring of the burial pit will be done in an effective manner that protects the important natural resource of Watsonville Slough and protects the public living near the project site.

Documents addressing the four bullet points above should be prepared specifically for the project and made available for public review prior to approval of a Development Agreement by the Council. We

Agenda Item 12.b - Hillcrest Estates
April 25, 2022

hope that you, as stewards of the public health and welfare of the City, agree. In addition, the project developer should be willing to prepare these documents prior to your approval of the Agreement as a sign of transparency and good faith to surrounding neighbors and the public at-large.

Thank you for your consideration of these comments.

Sincerely,
Donna Bradford
Donna Bradford, President
Board of Directors
Watsonville Wetlands Watch
cc: Suzi Merriam, Community Development Director

4/21/2022 9:12:07 PM
C:\Program Files\eSCRIBE\TEMP\2112646126\2112646126,,,Report - Introduction of Ordinance Military Equipment Policy .docx Agenda Report
MEETING DATE: Tuesday, April 26, 2022
TO: City Council
FROM: POLICE CHIEF ZAMORA

ASSISTANT POLICE CHIEF SIMS
SUBJECT: INTRODUCTION OF A NEW ORDINANCE FOR THE CITY OF WATSONVILLE, ADDING CHAPTER 4-13 AND APPROVING A

MILITARY EQUIPMENT USE POLICY
STATEMENT OF ISSUES:

Effective January 1, 2022, Assembly Bill 481 (codified in Government Code §§7070, et seq.) requires legislative bodies to adopt ordinances approving military equipment use policies before law enforcement agencies can continue to engage in specified activities related to the use of what the state legislature has now defined as “military equipment” in Government Code §7070. The Watsonville Police Department has some equipment that qualifies as “military equipment” in inventory and engages in critical public safety activities in coordination with other local jurisdictions, which will be prohibited within 180 days unless an ordinance meeting the requirements of Government Code §7071 is adopted.

RECOMMENDED ACTION:

Staff recommends that the City Council introduce an Ordinance which adds a new chapter 13 entitled Military Equipment Use Ordinance” to Title 4 (Public Safety) of the Watsonville Municipal Code, and approving a Military Equipment Use Policy for Police Services”; and direct the City Clerk to read the title of the proposed ordinance.

DISCUSSION:

The proposed ordinance would approve a Military Equipment Use Policy (Attachment 2) that is consistent with the Department’s current policy and meets the relevant requirements of AB 481 (Attachment 1). As required by Government Code §7071(b), the proposed policy was posted on the Department’s website at: Cityofwatsonville.org/197/Police on Wednesday March 23, 2022. If adopted, the Police Department would be responsible for ensuring that all provisions of Government Code §7071 and §7072 are met. The Council would be required by law to review the ordinance and policy at least annually and have the opportunity to renew it or make any necessary changes.

The proposed policy approves the continued use of equipment currently in the Police Department’s inventory by authorized and trained personnel, when the use is necessary to maintain safety.

4/21/2022 9:12:07 PM
C:\Program Files\eSCRIBE\TEMP\2112646126\2112646126,,,Report - Introduction of Ordinance Military Equipment Policy .docx The proposed policy would also allow the continued collaboration with other law enforcement agencies in the deployment or other use of military equipment within the City when exigent circumstances require a swift response. The Department works closely with other local, county, state and federal law enforcement agencies on police-related matters, including safeguarding the public’s welfare and safety, working on regional task forces, conducting training exercises, providing mutual aid and responding to emergencies. In exigent circumstances, there is sometimes the need to deploy military equipment from or lend military equipment to outside entities to promote the safety and security of community members. When military equipment is used under exigent circumstances, the proposed ordinance requires reporting on the use to the City Council within a specified time period.

Government Code §7071(d)(1) sets forth the findings that Council must make in order to adopt the proposed policy and ordinance. Staff believes that Council can make the required findings because:

1. Authorizing the use of military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. The acquisition and use of this equipment is part of the Watsonville Police Department’s overall approach to critical incident management, use of force, de-escalation and public safety. The equipment will enable department members to properly respond to both planned and unplanned events efficiently and effectively.

2. The proposed Military Equipment Use Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties by ensuring required reporting out, the opportunity for community engagement and feedback, and transparency and oversight regarding the acquisition and use of the specified military equipment in the City of Watsonville.

3. Prior military equipment use complied with the military equipment use policy that was in effect at the time of the use.

STRATEGIC PLAN:
6-Public Safety
FINANCIAL IMPACT:

There would not be any new, unplanned direct fiscal impacts to continuing the use of equipment already in the Department’s inventory or continuing to collaborate with other law enforcement agencies, including in mutual aid circumstances. Maintenance costs of existing equipment is within the Department’s budget. There will be staff time associated with compliance, annual review, reporting and community engagement meetings, all of which are required pursuant to applicable provisions of the Government Code.

ALTERNATIVE ACTION:

Council could make changes to the Military Equipment Use Policy and/or ordinance or choose not to go forward with introducing the ordinance.

4/21/2022 9:12:07 PM
C:\Program Files\eSCRIBE\TEMP\2112646126\2112646126,,,Report - Introduction of Ordinance Military Equipment Policy .docx ATTACHMENTS AND/OR REFERENCES:

1. Text of California Assembly Bill 481 (AB 481)

2. Watsonville Police Department-Policy 708

3/30/22, 2:35 PM Bill Text - AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB481 SHARE THIS: Date Published: 10/01/2021 09:00 PM
AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. (2021-20 Assembly Bill No. 481
CHAPTER 406
An act to add Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, relating to military equipment.
[ Approved by Governor September 30, 2021. Filed with Secretary of State September 30, 2021. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 481, Chiu. Law enforcement and state agencies: military equipment: funding, acquisition, and use.

Existing law designates the Department of General Services as the agency for the State of California responsible for distribution of federal surplus personal property, excepting food commodities, and requires the department to, among other things, do all things necessary to the execution of its powers and duties as the state agency for the distribution of federal personal surplus property, excepting food commodities, in accordance with specified federal law. Existing law, the Federal Surplus Property Acquisition Law of 1945, authorizes a local agency, as defined, to acquire surplus federal property without regard to any law which requires posting of notices or advertising for bids, inviting or receiving bids, or delivery of purchases before payment, or which prevents the local agency from bidding on federal surplus property. Existing federal law authorizes the Department of Defense to transfer surplus personal property, including arms and ammunition, to federal or state agencies for use in law enforcement activities, subject to specified conditions, at no cost to the acquiring agency.

This bill would require a law enforcement agency, defined to include specified entities, to obtain approval of the applicable governing body, by adoption of a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill would also require similar approval for the continued use of military equipment acquired prior to January 1, 2022. The bill would allow the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The bill would require the governing body to annually review the ordinance and to either disapprove a renewal of the authorization for a type, as defined, of military equipment or amend the military equipment use policy if it determines, based on an annual military equipment report prepared by the law enforcement agency, as provided, that the military equipment does not comply with the above-described standards for approval. The bill would specify these provisions do not preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

This bill would also require a state agency, as defined, to create a military equipment use policy before engaging in certain activities, publish the policy on the agency’s internet website, and provide a copy of the policy to the Governor or the Governor’s designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to January 1, 2022, to create a military equipment use policy.

This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

By adding to the duties of local officials with respect to the funding, acquisition, and use of military equipment, this bill would impose a state-mandated local program.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Attachment 1

3/30/22, 2:35 PM Bill Text - AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB481 public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our communities adversely impacts the public’s safety and welfare, including increased risk of civilian deaths, significant risks to civil rights, civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities, meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities.
(b) The public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials, as well as a right to participate in any government agency’s decision to fund, acquire, or use such equipment. (c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input. (d) Legally enforceable safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public’s welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used. (e) The lack of a public forum to discuss the acquisition of military equipment jeopardizes the relationship police have with the community, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service.

SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to Division 7 of Title 1 of the Government Code, to read:

CHAPTER 12.8. Funding, Acquisition, and Use of Military Equipment 7070. For purposes of this chapter, the following definitions shall apply:
(a) “Governing body” means the elected body that oversees a law enforcement agency or, if there is no elected body that directly oversees the law enforcement agency, the appointed body that oversees a law enforcement agency. In the case of a law enforcement agency of a county, including a sheriff’s department or a district attorney’s office, “governing body” means the board of supervisors of the county.
(b) “Law enforcement agency” means any of the following:
(1) A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff’s department.
(3) A district attorney’s office.
(4) A county probation department.
(c) “Military equipment” means the following:
(1) Unmanned, remotely piloted, powered aerial or ground vehicles. (2) Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subdivision. (3) High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision. (4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.
(5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.
(6) Weaponized aircraft, vessels, or vehicles of any kind. Attachment 1

3/30/22, 2:35 PM Bill Text - AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB481 (7) Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision. (8) Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision. (9) Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision.
(10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency. (11) Any firearm or firearm accessory that is designed to launch explosive projectiles. (12) “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.
(13) Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD). (14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.
(15) Any other equipment as determined by a governing body or a state agency to require additional oversight. (16) Notwithstanding paragraphs (1) through (15), “military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. (d) “Military equipment use policy” means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all of the following:
(1) A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. (2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.
(3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.
(4) The legal and procedural rules that govern each authorized use. (5) The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.
(7) For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner. (e) “State agency” means the law enforcement division of every state office, officer, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution.
(f) “Type” means each item that shares the same manufacturer model number. 7071. (a) (1) A law enforcement agency shall obtain approval of the governing body, by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following:
(A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code. (B) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. (D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. Attachment 1

3/30/22, 2:35 PM Bill Text - AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB481 (E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(F) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. (G) Acquiring military equipment through any means not provided by this paragraph. (2) No later than May 1, 2022, a law enforcement agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of military equipment, including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment use policy to the governing body, the law enforcement agency shall cease its use of the military equipment until it receives the approval of the governing body in accordance with this section. (b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall submit a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue. (c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public comment in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable. (d) (1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
(B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. (C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.
(D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.
(2) In order to facilitate public participation, any proposed or final military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use. (e) (1) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (2), vote on whether to renew the ordinance at a regular meeting held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set forth in subdivision (d). If the governing body determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth in subdivision (d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modifications to the military equipment use policy in a manner that will resolve the lack of compliance.
(f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community needs. 7072. (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use.

The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

Attachment 1

3/30/22, 2:35 PM Bill Text - AB-481 Law enforcement and state agencies: military equipment: funding, acquisition, and use. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB481 (4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.
(b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment. 7073. (a) A state agency shall create a military equipment use policy prior to engaging in any of the following:
(1) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code. (2) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (3) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. (4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire, use, or collaborate in the use of, military equipment. (7) Acquiring military equipment through any means not provided by this subdivision. (b) No later than May 1, 2022, a state agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall create a military equipment use policy. (c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy:
(1) Publish the military equipment use policy on the agency’s internet website. (2) Provide a copy of the military equipment use policy to the Governor or the Governor’s designee. 7074. The Legislature finds and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city, county, or city and county. 7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

Requiring local agencies to hold public meetings prior to the acquisition of military equipment further exposes that activity to public scrutiny and enhances public access to information concerning the conduct of the people’s business.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution.

Attachment 1

Policy
708
Watsonville Police Department
Watsonville PD Policy Manual
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Military Equipment - 1 Military Equipment
708.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (California Government Code §§ 7070, 7071 & 7072). This is further required by Watsonville City Municipal Code Chapter 4-13.

The Watsonville Police Department (WPD) does not possess any tactical equipment that it has obtained from the military and has not acquired any equipment through military surplus programs such as the 1033 Program. Notwithstanding the foregoing, California Government Code § 7071(b) requires that law enforcement agencies submit a proposed Military Equipment Use Policy to their governing board for approval.

California Government Code § 7070 provides a list of equipment types that are considered to be "military equipment" for purposes of this policy requirement, and this Military Equipment Use Policy includes information for any such equipment types that are possessed by the WPD, or reasonably likely to be deployed in Watsonville by other law enforcement partners. 708.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Department - The Watsonville Police Department
Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles.

Attachment 2

Watsonville Police Department
Watsonville PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Military Equipment - 2 • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
• "Military Equipment" does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency.
708.2 POLICY
It is the policy of the Watsonville Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 708.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police designates the Professional Standards Division Captain to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Watsonville Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Coordinating the process for a person to register a complaint, concern, or question about the use of a type of military equipment. The Department will respond promptly.

A complaint, concern, or question related to Military Equipment utilization by the Watsonville Police Department can be made:

Attachment 2

Watsonville Police Department
Watsonville PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Military Equipment - 3

1. Via email to: [email protected]

2. Via phone call to: (831) 768-3399

3. Via mail sent to: Watsonville Police Department; Attn: Military Equipment Coordinator; 215 Union Street: Watsonville, CA 95076
708.4 APPROVAL

1. The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071).

The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above.

2. The military equipment use policy, and any amendments thereto, shall be approved by the governing body in accordance with Chapter 12.8 of Division 7 of Title 1 of the Government Code, if the governing body determines all of the following (Government Code § 7071(d)(1)):
(a) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (b) The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.
(c) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

Attachment 2

Watsonville Police Department
Watsonville PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Military Equipment - 4 (d) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

3. The military equipment use policy shall be reviewed and approved by the governing body at least annually through the adoption of a resolution. In the absence of such review and approval, the military equipment use policy shall expire one (1) year from the last approval date.

4. As part of the annual review, or from time to time as may be needed, the military equipment use policy may be amended through the adoption of a resolution by the governing body. 708.5 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this Department shall be approved for use and in accordance with this Departmental policy. Military equipment used by other jurisdictions that are providing mutual aid to this Department, or otherwise engaged in a law enforcement operation in this jurisdiction, shall comply with their respective military equipment use policies in rendering mutual aid.
708.6 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 708.7 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
708.8 MILITARY EQUIPMENT INVENTORY
The attached list is divided into two sections.

Section One - lists qualifying equipment that is owned and/or utilized by the Watsonville Police Department
Section Two - lists qualifying equipment that the Watsonville Police Department will be procuring, with anticipated dates of procurement.

Attachment 2

Watsonville Police Department
Watsonville PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Military Equipment - 5 See attachment: WPD Military Equipment Inventory.pdf
Attachment 2

Watsonville PD Policy Manual
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** Attachments - 6 Attachments
Attachment 2

Attachment
Watsonville PD Policy Manual
Copyright Lexipol, LLC 2022/04/08, All Rights Reserved.

Published with permission by Watsonville Police Department ***DRAFT*** WPD Military Equipment Inventory.pdf - 7 WPD Military Equipment Inventory.pdf
WPD Military Equipment Inventory.pdf
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Military Equipment Inventory Attachment
_____________________________________________________________________________________ Section One – Lists qualifying equipment that is owned and/or utilized by the Watsonville Police Department.

1. Section 1 – Unmanned, remotely piloted, ground vehicle (updated 4/6/22) a. Description, quantity, capabilities, and purchase cost:

Throwbot XT. Cost: $15,000. Quantity: 1. The 1.2-Lb Micro-Robot provides both video and audio reconnaissance capabilities. The Throwbot XT is a throwable, mobile microrobot that provides both audio and video reconnaissance of dangerous environments. b. Purpose:

To quickly gain situational awareness during high-risk operations. To help locate armed subjects, confirm the presence of hostages or innocent civilians, and reveal the layout of rooms.
c. Authorized Use:

This device may be used when a subject is barricaded or hiding, when hostages are present, or when it would be unsafe for an officer to enter a structure to obtain tactical information.
d. Expected Lifespan:
10-15 years.
e. Fiscal Impact:

The only fiscal impact would be replacement or repair cost. WPD has had this device since 2017 and have no related costs.
f. Training:

All operators must complete user training. Operators must demonstrate the ability to operate it safely and effectively.
g. Legal and Procedural Rules:

It is the policy of this agency to utilize the Throwbot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

2. Section 10 – Specialized Firearms and Ammunition
a. Description, quantity, capabilities, and purchase cost:

The Department Issued Colt LE6920 Carbine is a Gas Operated Semi-Auto rifle.

Cost: $1,200 each. Quantity: 17. This rifle is chambered in 5.56 NATO (M4), with adjustable stock, featuring a monolithic upper receiver, 16” barrel, Surefire flash hider and Surefire sound suppressor. These rifles are standard issue service weapons for our officers and therefore exempted from this Military Equipment Use Policy per California Government Code §7070(c)(10). They have been included in this document in the interest of transparency.
b. Purpose:

Situations where the officer reasonably anticipates an armed encounter. When an officer is faced with a situation that may require the delivery of accurate and effective fire at long range.

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Military Equipment Inventory Attachment
_____________________________________________________________________________________ c. Authorized Use:

Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include, but are not limited to:
 Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
 When an officer reasonably believes that there may be a need to deliver fire on a barricaded suspect or a suspect with a hostage.
 When an officer reasonably believes that a suspect may be wearing body armor.  When authorized or requested by a supervisor.
 When needed to euthanize an animal.
d. Expected Lifespan:
10 years
e. Fiscal Impact:

Yearly maintenance and repair cost averages $2000.
f. Training:

Officers must complete a CA POST certified 16-hour patrol rifle course and semi-annual department firearms training and qualifications as required by law and policy. WPD provides a 20-hour CA POST certified training.
g. Legal and Procedural Rules:

WPD Policy 300, 432

3. Section 10 – Specialized Firearms and Ammunition
a. Description, quantity, capabilities, and purchase cost:

Spartan Precision Bolt Action Rifle .308 cal. Cost: $5,550.00 each. Quantity: 4. The rifle is a bolt-action .308 caliber rifle used by the Special Response Unit sniper team. b. Purpose: To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use: Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include, but are not limited to:
 Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
 When an officer reasonably believes that there may be a need to deliver fire on a barricaded suspect or a suspect with a hostage.
 When an officer reasonably believes that a suspect may be wearing body armor.  When authorized or requested by a supervisor.
d. Expected Lifespan:
15 years
e. Fiscal Impact:

Annual maintenance cost of approximately $100 per rifle. $400. f. Training: Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle by attending a 40-hour training course. Additionally, all members that operate this rifle are required to pass a range qualification four times each year.

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Military Equipment Inventory Attachment
_____________________________________________________________________________________ g. Legal and Procedural Rules:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

4. Section 10 – Specialized Firearms and Ammunition
a. Description, quantity, capabilities, and purchase cost:

Daniel Defense V3 Semi-Auto Rifle .308 cal. Cost: $0 each (retained for Department use from Evidence Unit). Quantity: 1. The rifle is a semi-automatic .308 caliber rifle used by the Special Response Unit sniper team.
b. Purpose:

To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.
c. Authorized Use:

Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include, but are not limited to:
 Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
 When an officer reasonably believes that there may be a need to deliver fire on a barricaded suspect or a suspect with a hostage.
 When an officer reasonably believes that a suspect may be wearing body armor.  When authorized or requested by a supervisor.
d. Expected Lifespan:
15 years
e. Fiscal Impact:

Annual maintenance cost of approximately $100 per rifle. $100. f. Training:

Officers must complete a CA POST certified 16-hour patrol rifle course and semi-annual department firearms training and qualifications as required by law and policy. WPD provides a 20-hour POST certified training.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

5. Section 10 – Specialized Firearms and Ammunition
a. Description, quantity, capabilities, and purchase cost:

Hornady 308 168gr AMAX TAP 20 250. Cost: $19.50 x box of 20. Quantity: 1800. The 168 gr. A-MAX® bullet is a traditional match grade bullet with the performance advantages of a polymer tip. This bullet demonstrates an increase in penetration and retained weight over the 155 gr. A-MAX® bullet. Standard barrier performance is exemplary and this load demonstrates controlled and impressive soft tissue expansion without over penetration. The Hornady® 168 gr. A-MAX® TAP Precision® offers industry Attachment 2

Military Equipment Inventory Attachment
_____________________________________________________________________________________ leading all-around performance for law enforcement precision marksmen providing the ability to stop a threat.
b. Purpose:

To be used with precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
d. Expected Lifespan:

No expiration date.
e. Fiscal Impact:

No annual maintenance cost. Replacement cost for training is about $640 each year. f. Training:

Officers must complete a CA POST certified 16-hour patrol rifle course and semi-annual department firearms training and qualifications as required by law and policy. WPD provides a 20-hour POST certified training.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

6. Section 10 – Specialized Firearms and Ammunition
a. Description, quantity, capabilities, and purchase cost:

Federal Cartridge .308 Win Tactical Bonded Tip 168 Grain Duty Ammunition. Cost:
$69.99 x box of 20. Quantity: 400. Federal Cartridge .308 Win Tactical Bonded Tip 168 Grain Duty Ammunition is made exclusively for law enforcement and achieves accuracy and terminal performance unmatched by any other ammunition. Designed to defeat the toughest barriers with minimal deflection, Tactical Bonded Tip ammo has quickly become the choice for some of the most intense conditions. b. Purpose:

To be used with precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible c. Authorized Use:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force
d. Expected Lifespan:

No expiration date.
e. Fiscal Impact:

No annual maintenance cost. Replacement cost for training is about $280 each year.

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Military Equipment Inventory Attachment
_____________________________________________________________________________________ f. Training:

Officers must complete a CA POST certified 16-hour patrol rifle course and semi-annual department firearms training and qualifications as required by law and policy. WPD provides a 20-hour POST certified training.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy 300. It is the policy of this agency to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

7. Section 11 – Firearm or firearm accessory that is designated to launch explosive projectiles a. Description, quantity, capabilities, and purchase cost:

Remington 870, pump action shotgun. Cost: $454. Quantity: 2. This shotgun deploys a frangible 12-gauge round. The Remington Model 870 Pump Shotgun is a reliable 12- gauge with double-action bars for smooth pump operation. A steel-lined/grooved foreend provides a stronger grip, while the Flexitab feeding system provides positive and easier cycling.
b. Purpose:

These are used to quickly dislodge hinges from doors / frames during critical incidents in order to gain entry and provide tactical advantage
c. Authorized Use:

Circumstances justifying the use of the breaching shotgun may include, but not be limited to:
 Barricaded subject and/or hostage situations
 High-risk warrant services
 Situations wherein the Incident Commander or on-scene Supervisor deems their use necessary to safely resolve the incident.
d. Expected Lifespan:
25 years
e. Fiscal Impact:

No yearly maintenance is required. Replacement cost would be the only fiscal impact. f. Training:

Special Response Team (SRT) members receive 8-hours of training from certified trainers. Yearly training and qualifications.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy. It is the policy of this agency to utilize these devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force, including the Fourth Amendment of the U.S.

Constitution.

8. Section 11 – Firearm or firearm accessory that is designated to launch explosive projectiles a. Description, quantity, capabilities, and purchase cost:

Combined Systems Technology Launching cup. Cost $180 per cup, quantity: 2. Designed for 5200 series grenades. Cups can be attached to any 12-gauge shotgun and the munition launched with our model 2600 launching cartridge.

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Military Equipment Inventory Attachment
_____________________________________________________________________________________ b. Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable
c. Authorized Use:

Tear gas may be used for crowd control, crowd dispersal or against barricaded suspects based on the circumstances. Only the Incident Commander may authorize the delivery and use of tear gas, and only after evaluating all conditions known at the time and determining that such force reasonably appears justified and necessary. d. Expected Lifespan:
5 Years
e. Fiscal Impact:

Annual replacement cost varies based on usage for training and critical incidents. On average about $360 each year.
f. Training:

Special Response Team (SRT) members receive 8-hours of training from certified trainers. Yearly training and qualifications.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy. It is the policy of this agency to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. WPD Policy 308.

9. Section 12 – Noise-flash diversionary devices and explosive breaching tools a. Description, quantity, capabilities, and purchase cost:

BP2 NFDD (Non-Firing Distraction Device) Straight Delivery Pole with Clamp Head Delivery. Cost: $1050. Quantity: 1
b. Purpose
The Pole allows a diversionary device to be mounted to it allowing department members to breach door handles from a relatively safe distance. c. Authorized Use:

Circumstances justifying the use of BP2 NFDD may include, but not be limited to:
 Barricaded subject and/or hostage situations
 High-risk warrant services
 Situations wherein the Incident Commander or on-scene Supervisor deems their use necessary to safely resolve the incident.
d. Expected Lifespan:
25+ years.
e. Fiscal Impact:

No fiscal impact is anticipated.
f. Training:

Special Response Team (SRT) members receive 8-hours of training from certified trainers. Yearly training and qualifications.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy. It is the policy of this agency to utilize these devices only for official law enforcement purposes, and pursuant to State and Federal Attachment 2

Military Equipment Inventory Attachment
_____________________________________________________________________________________ law regarding the use of force, including the Fourth Amendment of the U.S.

Constitution.

10. Section 12 – Noise-flash diversionary devices and explosive breaching tools a. Description, quantity, capabilities, and purchase cost:

Defense Technology 11-gram, low roll II, non-reloadable distraction device. Cost:
$48.25 each, Quantity: 44. A Noise Flash Diversionary Device (NFDD) is a device that creates a bright flash and loud sound to temporarily divert the attention of subjects in the immediate area.
b. Purpose:

NFDD are used to distract and temporarily incapacitate dangerous suspects by overwhelming their senses of vision and hearing. The distraction allows officers to seize a moment of opportunity to take control of high-risk situations. They produce atmospheric overpressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
c. Authorized Use:

Circumstances justifying the use of flash/sound diversionary devices may include, but not be limited to:
 Barricaded subject and/or hostage situations
 High-risk warrant services
 Discouraging dangerous animals from attacking
 Riotous situations
 Circumstances wherein distraction of violent and/or emotionally disturbed persons and/or those under the influence of alcohol/drugs is believed necessary to facilitate apprehension/custody
 Situations wherein the Incident Commander or on-scene Supervisor deems their use necessary to safely resolve the incident.
d. Expected Lifespan:
5 years
e. Fiscal Impact:

Annual replacement cost varies based on usage for training and critical incidents. On average about $200 each year.
f. Training:

Special Response Team (SRT) members receive 8-hours of training from certified trainers. Yearly training and qualifications.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy. It is the policy of this agency to utilize these devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. WPD Policy 415.

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Military Equipment Inventory Attachment
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11. Section 12 - Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
a. Description, quantity, capabilities, and purchase cost:

Combined Tactical Systems Buffeted Riot CS Smoke. Cost: $33.49 each. Quantity: 19.

The Combined Systems Technology Baffled Riot CS Smoke (Model #5230B) is a pyrotechnic grenade designed for indoor/outdoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire. It can be hand thrown or launched. CS (2-Chlorobenzylidene Malononitrile) is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). b. Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
c. Authorized Use:

Tear gas may be used for crowd control, crowd dispersal or against barricaded suspects based on the circumstances. Only the Incident Commander may authorize the delivery and use of tear gas, and only after evaluating all conditions known at the time and determining that such force reasonably appears justified and necessary. d. Expected Lifespan:
5 years
e. Fiscal Impact:

Annual replacement cost varies based on usage for training and critical incidents. On average about $100 each year
f. Training:

Special Response Team (SRT) members receive 8-hours of training from certified trainers. Yearly training and qualifications.
g. Legal and Procedural Rules:

Use is established under WPD’s Policy. It is the policy of this agency to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force. WPD Policy 308.

12. Section 12 - Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
a. Description, quantity, capabilities, and purchase cost:

Defense Technology Stinger CS Rubber Ball Grenade. Cost: $47.20. Quantity: 6.

Maximum effect device that delivers 4 stimuli for psychological and physiological effects; rubber pellets, light, sound, and CS. CS (2-Chlorobenzylidene Malononitrile) is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). b. Purpose:

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to: Self-destructive, dangerous and/or combative individuals, riot/crowd control and civil unrest incidents, and department training exercises.

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