Watsonville City Council
September 24, 2024

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c. In the performance of this contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder, except as provided in the Labor Code. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code and CONTRACTOR shall forfeit to CITY as penalty the sum of twenty-five dollars ($25.00) for each employee employed in the execution of this contract by CONTRACTOR or any subcontractor retained by CONTRACTOR for each calendar day during which any employee is required or permitted to labor more than eight (8) hours in violation of said Article.

8. Independent Contractor Status. CONTRACTOR is an independent contractor and shall not for any purpose be deemed to be an employee, agent, or other representative of CITY.

CONTRACTOR shall not assign, sublet, transfer, or otherwise substitute its interest in this Agreement, or any of its obligations hereunder without the written consent of CITY. CITY shall have no liability for the payment of any salaries, wages, fees, equipment, materials or services provided to CONTRACTOR by any person or firm.

9. Notice. Any notice to CONTRACTOR required by this Agreement shall be deemed to have been given when mailed, certified mail, or delivered to:

S&H CONSTRUCTION INCORPORATED
5560 BOSCELL COMMON
FREMONT, CALIFORNIA 94538
Notice to the CITY shall be mailed, certified mail, or delivered to:

Watsonville Municipal Airport
100 Aviation Way
Watsonville, CA 95076
Attn.: Rayvon Williams, Airport Manager

10. Indemnification. CONTRACTOR shall indemnify, defend, and hold harmless CITY, its officers, agents, and employees from and against any and all claims, demands, liability, costs, and expenses of whatever nature, including court costs and counsel fees arising out of injury to or death of any person or persons or loss of or physical damage to any property resulting in any manner from the willful acts or negligence of CONTRACTOR, its subcontractors, agents, employees, licensees, or guests in the making or performance of this Agreement.

11. Non-Discrimination. CONTRACTOR agrees that it will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, reproductive health decision making, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or veteran or military status, except as provided under California Government Code Section 12940. CONTRACTOR is responsible for compliance with this Section and must include this non-discrimination provision in all subcontractors.

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12. Bond Requirements. CONTRACTOR shall, prior to the execution of the contract, provide CITY with sufficient surety bonds, including a performance bond in the amount of one hundred percent (100%) of the contract price, to guarantee the faithful performance of the work, and a payment bond in the amount of one hundred percent (100%) of the contract price to guarantee payment of all claims for labor and materials furnished. This Agreement shall not become effective until the bonds are supplied to and approved by CITY.

13. Disputes. Notwithstanding any provision to the contrary in the Notice Inviting Sealed Bids or this Agreement, all disputes shall be resolved in the manner set forth in Section 50-16, FAA General Provisions, Claims for Adjustment and Disputes of the General Provisions.

14. Claims. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 20104, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls

15. Venue and Choice of Law. This Agreement and the Contract Documents shall be deemed to have been entered into in the City of Watsonville, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in the Superior Court for the County of Santa Cruz, California.

16. Insurance Requirements. CONTRACTOR agrees to obtain and maintain in full force and effect during the term of the Agreement the insurance coverages listed in Exhibit C, which is incorporated through this reference.

17. Federal Contract Provisions. The work to be done under this agreement is being financed in whole or in part by means of a grant made by the United States acting through the Federal Aviation Administration of the Department of Transportation. The contractor must adhere to the Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects, included in Exhibit D of this Agreement and incorporated by reference.

All mechanics and laborers on the project shall be paid no less than the minimum wage rate established by the U.S. Secretary of Labor. A copy of the Department of Labor Wage Rate Determination applicable to the contract is included as Part C of Division III, Federal Provisions.

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Terms and Conditions have been reviewed and approval recommended:

Approved by the Watsonville City Council on
by Resolution No.

CONTRACTOR: S&H CONSTRUCTION INC CITY OF WATSONVILLE
Dated: Dated:

By:

City Manager
Title
Approved as to form:

City Attorney
Attest:

City Clerk
Contractor’s City Business License Number: 065336 (City of Fremont) Contractor’s Taxpayer Identification Number: 20-3561290

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EXHIBIT A
Compensation
Progress payments shall be made at least once each month as the work progresses. Said payments will be based upon estimates, prepared by the RPR, of the value of the work performed and materials complete and in place, in accordance with the contract, plans, and specifications. These progress payments shall be based on work accomplished during the previous working month, based on the various contract bid items and the unit bid prices included in the Proposal Form submitted by the Contractor with his/her bid. In applying for payments, the Contractor shall submit a statement to the RPR based on this schedule. Payment will be made only for material and work actually incorporated in the work, except as allowed in Article 90-07, Payment for Materials on Hand, of the FAA General Provisions.

Owner shall withhold from each payment due the Contractor five percent (5%) of the amount claimed.

This 5% of the payment shall be withheld until final acceptance of the total project is given by the Owner, by the RPR, and by the FAA. After final acceptance of the project is given and the Contractor has submitted acceptable release of all liens and documents listed in Article 90-11, Project Closeout, of the FAA General Contract Provisions and furnished the RPR acceptable red-lined drawings showing the "as-built" condition of the completed project, then the Owner shall release for payment the 5% retention. Owner will make such final payment of retention within thirty-five (35) days of final acceptance of the project and submittal of release of liens and red-lined as-built drawings.

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EXHIBIT B
Schedule of Performance

WATSONVILLE MUNICIPAL AIRPORT
POLLUTION CONTROL SYSTEM – WASH RACK
AIP NO. 3-06-0272-026-2024
The Contractor shall begin work within ten (10) calendar days after the date set in the written Notice to Proceed by the Owner and shall diligently prosecute same to completion for all of the proposed construction.

All work shall be accomplished on this project within twenty (20) working days.

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EXHIBIT C
Insurance

1. General Requirements. Contractor must procure and maintain in full force and effect during the term of this Contract the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below:

Type of Insurance Limits (combined single)
Commercial General Liability $2,000,000
Business Automobile Liability $1,000,000
Workers’ Compensation Statutory Requirements
Pollution Liability Insurance As stated below

2. Commercial General Liability Insurance. This policy must meet or exceed the requirements of Insurance Services Office (ISO) CGL Form No. CG 00 01. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. The insurance must be on an “occurrence” not a “claims-made” basis. Defense costs must be paid in addition to limits. There must be no cross-liability exclusion for claims or suits by one insured against another. Limits may be no less than $2,000,000 per occurrence for all covered losses, and no less than $4,000,000 general aggregate.

Liability policies must be endorsed to name Owner, its officials, employees and agents as “additional insureds” under the insurance coverage.

The policy must state that such insurance will be deemed “primary” such that any other insurance that may be carried by Owner will be deemed “excess” to that of Contractor.

This endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent form as determined by Owner.

Coverage must be applicable to Owner for injury to employees of Contractor, subcontractors, agents or others performing any part of the Work required under this Contract. Each policy must be endorsed to provide a separate limit applicable to this Project.

The Commercial General Liability policy must not contain any endorsements limiting coverage beyond the basic policy coverage for any of the following:

1. Explosion, collapse or underground hazard (XCU);

2. Products and completed operation;

3. Public liability;

3. Pollution liability; or

4. Contractual liability.

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3. Business Auto Coverage. This policy must be on ISO Business Auto Coverage Form CA 00 01 including symbol 1 (Any Auto) and Endorsement CA 0025, or equivalent forms approved in writing by Owner. Limits must not be less than $1,000,000 per accident, combined single limit, or if Contractor neither leases nor owns vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Contractor or Contractor’s employees will use personal autos in any way on this Project, Contractor must provide evidence of personal auto liability coverage for each such person.

4. Workers Compensation. Contractor must have a State of California approved policy form providing the statutory benefits required by law with employer’s liability limits of no less than $1,000,000 per accident for all covered losses, or Contractor must provide evidence of an approved self-insurance program.

5. Pollution Liability Insurance. Pollution/Environmental Impairment Liability Insurance must be written on a Contractor’s Pollution Liability form or other form acceptable to Agency providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit must be no less than $5,000,000 per claim and in the aggregate. All activities contemplated in this Contract must be specifically scheduled on the policy as “covered operations.” The policy must provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

6. Other Insurance; Revisions to Insurance. Contractor may be required to obtain such other insurance coverage as may be required by applicable law or by Owner. Owner reserves the right at any time during the term of the Contract to change the amounts and types of insurance required by giving Contractor 60 days advance written notice of such change. If such change results in substantial additional cost to Contractor, Owner and Contractor may renegotiate Contractor’s compensation.

7. Acceptable Insurers. All required insurance policies must be issued by an insurance company currently authorized by the California Insurance Commissioner to transact the business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Owner’s Risk Manager or General Counsel.

8. Excess or Umbrella Liability Insurance (Over Primary). If an excess or umbrella liability policy is used to meet limit requirements, the insurance must provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an excess or umbrella liability policy must include a “drop-down provision” providing primary coverage above a maximum $25,000 self-insured retention for liability not covered by primary but covered by the umbrella. Coverage must be provided on a “pay-on-behalf” basis, with defense costs payable in addition to policy limits. There may be no crossliability exclusion precluding coverage for claims or suits by one insured against another.

Coverage must be applicable to Owner for injury to employees of Contractor, its subcontractors or others performing Work to satisfy Contractor’s obligations under this Contract. The scope of coverage provided is subject to approval of Owner following

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receipt of proof of insurance as required herein. Limits are subject to review, but in no event may be less than $4,000,000 per occurrence and aggregate.

9. Certificates of Insurance and Endorsements. Prior to commencing any Work under this Contract, Contractor must file with the Owner Certificates of Insurance and Endorsements evidencing the existence of all insurance required by this Contract, along with such other evidence of insurance or copies of policies as may reasonably be required by Owner. Such Certificates of Insurance and Endorsements must be in a form approved by Owner’s legal counsel. Contractor must maintain current certificates and endorsements on file with Owner during the term of this Contract reflecting the existence of all required insurance.

Each of the certificates must expressly provide that no material change in the policy, or termination thereof, will be effective except upon 30 days’ prior written notice to Owner.

10. Failure to Maintain Required Insurance. If Contractor, for any reason, fails to have in place at all times during the term of this Contract all of the required insurance coverage, Owner may obtain such coverage at Contractor’s expense and deduct the cost from the sums due Contractor.

11. Effect of Coverage. The existence of the required insurance coverage under this Contract will not be deemed to satisfy or limit Contractor’s indemnity obligations under this Contract.

12. Higher Limits of Insurance. If Contractor maintains higher limits of insurance than the required amounts shown in Section 1 above, then such amounts will be the minimum required under this Contract.

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EXHIBIT D

CONTRACT PROVISIONS FOR OBLIGATED SPONSORS AND AIRPORT

IMPROVEMENT PROGRAM PROJECTS
Federal Contract Terms, Conditions, and Regulations
In performing its Work under the Contract, Contractor must conform to all applicable federal, state, and local codes, laws, ordinances, rules, and regulations, which will have full force and effect as though printed in full in the Contract. In addition to the terms, conditions, performance obligations, and other requirements set forth in the Contract, Contractor must comply with the following federal contract terms, conditions, and regulations, which are incorporated by reference in the Contract:

I. ACCESS TO RECORDS AND REPORTS
The Contractor must maintain an acceptable cost accounting system. The Contractor agrees to provide the Owner, the Federal Aviation Administration and the Comptroller General of the United States or any of their duly authorized representatives access to any books, documents, papers and records of the Contractor which are directly pertinent to the specific contract for the purpose of making audit, examination, excerpts and transcriptions. The Contractor agrees to maintain all books, records and reports required under this contract for a period of not less than three years after final payment is made and all pending matters are closed.

II. AFFIRMATIVE ACTION REQUIREMENT
A. The Offeror’s or Bidder’s attention is called to the “Equal Opportunity Clause” and the “Standard Federal Equal Employment Opportunity Construction Contract Specifications” set forth herein.

B. The goals and timetables for minority and female participation, expressed in percentage terms for the Contractor’s aggregate workforce in each trade on all construction work in the covered area, are as follows:

Timetables
Goals for minority participation for each trade: 14.9%
Goals for female participation in each trade: 6.9%
These goals are applicable to all of the Contractor’s construction work (whether or not it is Federal or federally assisted) performed in the covered area. If the Contractor performs construction work in a geographical area located outside of the covered area, it shall apply the goals established for such geographical area where the work is actually performed. With regard to this second area, the Contractor also is subject to the goals for both its federally involved and nonfederally involved construction.

The Contractor’s compliance with the Executive Order and the regulations in 41 CFR Part 60-4 shall be based on its implementation of the Equal Opportunity Clause, specific affirmative action

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obligations required by the specifications set forth in 41 CFR 60-4.3(a) and its efforts to meet the goals. The hours of minority and female employment and training must be substantially uniform throughout the length of the contract, and in each trade, and the Contractor shall make a good faith effort to employ minorities and women evenly on each of its projects. The transfer of minority or female employees or trainees from Contractor to Contractor or from project to project for the sole purpose of meeting the Contractor’s goals shall be a violation of the contract, the Executive Order and the regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the total work hours performed.

C. The Contractor shall provide written notification to the Director of the Office of Federal Contract Compliance Programs (OFCCP) within 10 working days of award of any construction subcontract in excess of $10,000 at any tier for construction work under the contract resulting from this solicitation. The notification shall list the name, address, and telephone number of the subcontractor; employer identification number of the subcontractor; estimated dollar amount of the subcontract; estimated starting and completion dates of the subcontract; and the geographical area in which the subcontract is to be performed.

D. As used in this notice and in the contract resulting from this solicitation, the “covered area” is California, Santa Cruz County, Watsonville.

III. BREACH OF CONTRACT TERMS
Any violation or breach of terms of this contract on the part of the Contractor or its subcontractors may result in the suspension or termination of this contract or such other action that may be necessary to enforce the rights of the parties of this agreement.

Owner will provide Contractor written notice that describes the nature of the breach and corrective actions the Contractor must undertake in order to avoid termination of the contract. Owner reserves the right to withhold payments to Contractor until such time the Contractor corrects the breach or the Owner elects to terminate the contract. The Owner’s notice will identify a specific date by which the Contractor must correct the breach. Owner may proceed with termination of the contract if the Contractor fails to correct the breach by the deadline indicated in the Owner’s notice.

The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law.

IV. GENERAL CIVIL RIGHTS PROVISIONS
In all its activities within the scope of its airport program, the Contractor agrees to comply with pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance.

This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.

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The above provision binds the Contractor and subcontractors from the bid solicitation period through the completion of the contract.

IV. CIVIL RIGHTS TITLE VI
Title VI List of Pertinent Nondiscrimination Acts and Authorities During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “Contractor”) agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

1. Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin);

2. 49 CFR part 21 (Non-discrimination in Federally-Assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964);

3. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC § 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);

4. Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended (prohibits discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance);

5. The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.) (prohibits discrimination on the basis of age);

6. Airport and Airway Improvement Act of 1982 (49 USC § 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex);

7. The Civil Rights Restoration Act of 1987 (PL 100-259) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);

8. Titles II and III of the Americans with Disabilities Act of 1990 (42 USC § 12101, et seq) (prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38;

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9. The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);

10. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations (ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations);

11. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed. Reg. 74087 (2005)]; and

12. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 USC § 1681, et seq).

Compliance with Nondiscrimination Requirements:

During the performance of this contract, the Contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “Contractor”), agrees as follows:

1. Compliance with Regulations: The Contractor (hereinafter includes consultants) will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.

2. Nondiscrimination: The Contractor, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Contractor will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21.

3. Solicitations for Subcontracts, including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the Contractor of the contractor’s obligations under this contract and the Nondiscrimination Acts and Authorities on the grounds of race, color, or national origin.

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4. Information and Reports: The Contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Sponsor or the Federal Aviation Administration to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, the Contractor will so certify to the Sponsor or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.

5. Sanctions for Noncompliance: In the event of a Contractor’s noncompliance with the non-discrimination provisions of this contract, the Sponsor will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to:
a. Withholding payments to the Contractor under the contract until the Contractor complies; and/or
b. Cancelling, terminating, or suspending a contract, in whole or in part.

6. Incorporation of Provisions: The Contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. The Contractor will take action with respect to any subcontract or procurement as the Sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Contractor becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the Contractor may request the Sponsor to enter into any litigation to protect the interests of the Sponsor. In addition, the Contractor may request the United States to enter into the litigation to protect the interests of the United States.

VI. CLEAN AIR AND WATER POLLUTION CONTROL
Contractor agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act (42 USC §§ 7401-7671q) and the Federal Water Pollution Control Act as amended (33 USC §§ 1251-1387). The Contractor agrees to report any violation to the Owner immediately upon discovery. The Owner assumes responsibility for notifying the Environmental Protection Agency (EPA) and the Federal Aviation Administration.

Contractor must include this requirement in all subcontracts that exceed $150,000.

VII. CONTRACT WORKHOURS AND SAFETY STANDARDS ACT

REQUIREMENTS

1. Overtime Requirements: No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including

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watchmen and guards, in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.

2. Violation; Liability for Unpaid Wages; Liquidated Damages: In the event of any violation of the clause set forth in paragraph (1) of this clause, the Contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this clause, in the sum of $29 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1) of this clause.

3. Withholding for Unpaid Wages and Liquidated Damages: The Federal Aviation Administration (FAA) or the Owner shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this clause.

4. Subcontractors: The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (1) through (4) and also a clause requiring the subcontractor to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (1) through (4) of this clause.

VIII. COPELAND “ANTI-KICKBACK” ACT
Contractor must comply with the requirements of the Copeland “Anti-Kickback” Act (18 USC 874 and 40 USC 3145), as supplemented by Department of Labor regulation 29 CFR part 3.

Contractor and subcontractors are prohibited from inducing, by any means, any person employed on the project to give up any part of the compensation to which the employee is entitled. The Contractor and each Subcontractor must submit to the Owner, a weekly statement on the wages paid to each employee performing on covered work during the prior week. Owner must report any violations of the Act to the Federal Aviation Administration.

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IX. DAVIS-BACON REQUIREMENTS

1. Minimum Wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalent thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Contractor and such laborers and mechanics.

Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under (1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can easily be seen by the workers.
(ii)(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination; (2) The classification is utilized in the area by the construction industry; and

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(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(B) If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (C) In the event the Contractor, the laborers, or mechanics to be employed in the classification, or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (1)(ii) (B) or (C) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has found, upon the written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

2. Withholding. The Federal Aviation Administration or the Sponsor shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the Contractor under this contract or any other Federal contract with the same prime contractor, or any

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other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the Contractor or any subcontractor the full amount of wages required by the contract.

In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the Federal Aviation Administration may, after written notice to the Contractor, Sponsor, Applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.

3. Payrolls and Basic Records.
(i) Payrolls and basic records relating thereto shall be maintained by the Contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker; his or her correct classification; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 1(b)(2)(B) of the Davis-Bacon Act); daily and weekly number of hours worked; deductions made; and actual wages paid.

Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor shall maintain records that show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual costs incurred in providing such benefits.

Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The Contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit the payrolls to the applicant, Sponsor, or Owner, as the case may be, for transmission to the Federal Aviation Administration. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR § 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee’s social security number). The required weekly payroll information may be submitted in any form desired.

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contracts/construction/payroll-certification or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker and shall provide them upon request to the Federal Aviation Administration if the agency is a party to the contract, but if the agency is not such a party, the Contractor will submit them to the applicant, Sponsor, or Owner, as the case may be, for transmission to the Federal Aviation Administration, the Contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, Sponsor, or Owner). (B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the Contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR § 5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR § 5.5 (a)(3)(i), and that such information is correct and complete;
(2) That each laborer and mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the Contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code.
(iii) The Contractor or subcontractor shall make the records required under paragraph (3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the Sponsor, the Federal Aviation Administration, or the Department of Labor and shall permit such representatives to interview

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employees during working hours on the job. If the Contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the Contractor, Sponsor, applicant, or Owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR § 5.12.

4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the Contractor’s or subcontractor’s registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the Contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

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(ii) Trainees. Except as provided in 29 CFR § 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination that provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate that is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed.

In the event the Employment and Training Administration withdraws approval of a training program, the Contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal Employment Opportunity. The utilization of apprentices, trainees, and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part

30. 5. Compliance with Copeland Act Requirements.

The Contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this contract.

6. Subcontracts.

The Contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR §§ 5.5(a)(1) through (10) and such other clauses as the Federal Aviation Administration may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR § 5.5.

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7. Contract Termination: Debarment.

A breach of the contract clauses in paragraph 1 through 10 of this section may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR § 5.12.

8. Compliance with Davis-Bacon and Related Act Requirements.

All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract.

9. Disputes Concerning Labor Standards.

Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the Contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.

10. Certification of Eligibility.
(i) By entering into this contract, the Contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the Contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR § 5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR § 5.12(a)(1).
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 USC § 1001.

X. DISADVANTAGED BUSINESS ENTERPRISE
The requirements of 49 CFR part 26 apply to this contract. It is the policy of the City of Watsonville to practice nondiscrimination based on race, color, sex, or national origin in the award or performance of this contract. The Owner encourages participation by all firms qualifying under this solicitation regardless of business size or ownership.

Contract Assurance (49 CFR § 26.13)
The Contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The Contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the Contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:

1. Withholding monthly progress payments;

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2. Assessing sanctions;

3. Liquidated damages; and/or

4. Disqualifying the Contractor from future bidding as non-responsible.

Prompt Payment (49 CFR § 26.29)
The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than thirty (30) days from the receipt of each payment the prime contractor receives from the City of Watsonville. The prime contractor agrees further to return retainage payments to each subcontractor within thirty (30) days after the subcontractor’s work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City of Watsonville. This clause applies to both DBE and non-DBE subcontractors.

Termination of DBE Subcontracts (49 CFR § 26.53(f))
The prime contractor must not terminate a DBE subcontractor listed in response to (or an approved substitute DBE firm) without prior written consent of City of Watsonville. This includes, but is not limited to, instances in which the prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a non-DBE firm, or with another DBE firm.

The prime contractor shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless the contractor obtains written consent City of Watsonville.

Unless City of Watsonville consent is provided, the prime contractor shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE.

City of Watsonville may provide such written consent only if City of Watsonville agrees, for reasons stated in the concurrence document, that the prime contractor has good cause to terminate the DBE firm. For purposes of this paragraph, good cause includes the circumstances listed in 49 CFR §26.53.

Before transmitting to City of Watsonville its request to terminate and/or substitute a DBE subcontractor, the prime contractor must give notice in writing to the DBE subcontractor, with a copy to City of Watsonville, of its intent to request to terminate and/or substitute, and the reason for the request.

The prime contractor must give the DBE five days to respond to the prime contractor's notice and advise City of Watsonville and the contractor of the reasons, if any, why it objects to the proposed termination of its subcontract and why City of Watsonville should not approve the prime contractor's action. If required in a particular case as a matter of public necessity (e.g., safety), City of Watsonville may provide a response period shorter than five days.

In addition to post-award terminations, the provisions of this section apply to pre-award deletions of or substitutions for DBE firms put forward by offerors in negotiated procurements.

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XI. TEXTING WHEN DRIVING
In accordance with Executive Order 13513, “Federal Leadership on Reducing Text Messaging While Driving”, (10/1/2009) and DOT Order 3902.10, “Text Messaging While Driving”, (12/30/2009), the Federal Aviation Administration encourages recipients of Federal grant funds to adopt and enforce safety policies that decrease crashes by distracted drivers, including policies to ban text messaging while driving when performing work related to a grant or subgrant.

In support of this initiative, the Owner encourages the Contractor to promote policies and initiatives for its employees and other work personnel that decrease crashes by distracted drivers, including policies that ban text messaging while driving motor vehicles while performing work activities associated with the project. The Contractor must include the substance of this clause in all sub-tier contracts exceeding $10,000 that involve driving a motor vehicle in performance of work activities associated with the project.

XII. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO

SURVEILLANCE SERVICES OR EQUIPMENT
Contractor and Subcontractor agree to comply with mandatory standards and policies relating to use and procurement of certain telecommunications and video surveillance services or equipment in compliance with the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)].

XIII. EQUAL OPPORTUNITY
During the performance of this contract, the Contractor agrees as follows:

1. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, sexual orientation, gender identify, or national origin. Such action shall include, but not be limited to, the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

2. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.

3. The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an

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investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.

4. The Contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or workers’ representative of the Contractor’s commitments under this section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

5. The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

6. The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

7. In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this contract or with any such rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

8. The Contractor will include the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY CONSTRUCTION

CONTRACT SPECIFICATIONS

1. As used in these specifications:
a. “Covered area” means the geographical area described in the solicitation from which this contract resulted;
b. “Director” means Director, Office of Federal Contract Compliance Programs (OFCCP), U.S. Department of Labor, or any person to whom the Director delegates authority; c. “Employer identification number” means the Federal social security number used on the Employer’s Quarterly Federal Tax Return, U.S. Treasury Department Form 941; d. “Minority” includes:

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(1) Black (all persons having origins in any of the Black African racial groups not of Hispanic origin);
(2) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race); (3) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands); and
(4) American Indian or Alaskan native (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification).

2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the work involving any construction trade, it shall physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice which contains the applicable goals for minority and female participation and which is set forth in the solicitations from which this contract resulted.

3. If the Contractor is participating (pursuant to 41 CFR part 60-4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through an association, its affirmative action obligations on all work in the Plan area (including goals and timetables) shall be in accordance with that Plan for those trades which have unions participating in the Plan.

Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each contractor or subcontractor participating in an approved plan is individually required to comply with its obligations under the EEO clause and to make a good faith effort to achieve each goal under the Plan in each trade in which it has employees. The overall good faith performance by other contractors or subcontractors toward a goal in an approved Plan does not excuse any covered contractor’s or subcontractor’s failure to take good faith efforts to achieve the Plan goals and timetables.

4. The Contractor shall implement the specific affirmative action standards provided in paragraphs 7a through 7p of these specifications. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female utilization the Contractor should reasonably be able to achieve in each construction trade in which it has employees in the covered area. Covered construction contractors performing construction work in a geographical areas where they do not have a Federal or federally assisted construction contract shall apply the minority and female goals established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice form, and such notices may be obtained from any Office of Federal Contract Compliance Programs office or from Federal procurement contracting officers. The Contractor is expected to make substantially uniform progress in meeting its goals in each craft during the period specified.

5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the Contractor has a collective bargaining agreement, to refer either minorities or women shall excuse the Contractor’s obligations under these specifications, Executive Order 11246, or the regulations promulgated pursuant thereto.

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6. In order for the nonworking training hours of apprentices and trainees to be counted in meeting the goals, such apprentices and trainees must be employed by the Contractor during the training period, and the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of employment opportunities.

Trainees must be trained pursuant to training programs approved by the U.S. Department of Labor.

7. The Contractor shall take specific affirmative actions to ensure equal employment opportunity.

The evaluation of the Contractor’s compliance with these specifications shall be based upon its effort to achieve maximum results from its actions. The Contractor shall document these efforts fully, and shall implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which the Contractor’s employees are assigned to work. The Contractor, where possible, will assign two or more women to each construction project. The Contractor shall specifically ensure that all foremen, superintendents, and other onsite supervisory personnel are aware of and carry out the Contractor’s obligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. b. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain a record of the organizations’ responses. c. Maintain a current file of the names, addresses, and telephone numbers of each minority and female off-the-street applicant and minority or female referral from a union, a recruitment source, or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefor, along with whatever additional actions the Contractor may have taken. d. Provide immediate written notification to the Director when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor, or when the Contractor has other information that the union referral process has impeded the Contractor’s efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in training programs for the area which expressly include minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractor’s employment needs, especially those programs funded or approved by the Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under 7b above.
f. Disseminate the Contractor’s EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female

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employees at least once a year; and by posting the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed. g. Review, at least annually, the company’s EEO policy and affirmative action obligations under these specifications with all employees having any responsibility for hiring, assignment, layoff, termination, or other employment decisions including specific review of these items with onsite supervisory personnel such superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. h. Disseminate the Contractor’s EEO policy externally by including it in any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the Contractor’s EEO policy with other contractors and subcontractors with whom the Contractor does or anticipates doing business. i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations, to schools with minority and female students and to minority and female recruitment and training organizations serving the Contractor’s recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures, and tests to be used in the selection process. j. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer, and vacation employment to minority and female youth both on the site and in other areas of a contractor’s work force.
k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3.
l. Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel, for promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. m. Ensure that seniority practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect by continually monitoring all personnel and employment related activities to ensure that the EEO policy and the Contractor’s obligations under these specifications are being carried out. n. Ensure that all facilities and company activities are nonsegregated except that separate or single-user toilet and necessary changing facilities shall be provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations.
p. Conduct a review, at least annually, of all supervisor’s adherence to and performance under the Contractor’s EEO policies and affirmative action obligations.

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8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor association, joint contractor-union, contractor-community, or other similar group of which the Contractor is a member and participant may be asserted as fulfilling any one or more of its obligations under 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete benefits of the program are reflected in the Contractor’s minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor.

The obligation to comply, however, is the Contractor’s and failure of such a group to fulfill an obligation shall not be a defense for the Contractor’s noncompliance.

9. A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and nonminority. Consequently, the Contractor may be in violation of the Executive Order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized).

10. The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, sexual orientation, gender identity, or national origin.

11. The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246.

12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and penalties shall be in violation of these specifications and Executive Order 11246, as amended.

13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR part 60-4.8.

14. The Contractor shall designate a responsible official to monitor all employment related activity to ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone numbers, construction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records.

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15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g. those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).

XIV. FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM WAGE) All contracts and subcontracts that result from this solicitation incorporate by reference the provisions of 29 CFR part 201, et seq, the Federal Fair Labor Standards Act (FLSA), with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part-time workers.

The Contractor has full responsibility to monitor compliance to the referenced statute or regulation. The Contractor must address any claims or disputes that arise from this requirement directly with the U.S.

Department of Labor – Wage and Hour Division.

XV. PROHIBITION OF SEGREGATED FACILITIES

1. The Contractor agrees that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The Contractor agrees that a breach of this clause is a violation of the Equal Employment Opportunity clause in this contract.

2. “Segregated facilities,” as used in this clause, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin because of written or oral policies or employee custom. The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes.

3. The Contractor shall include this clause in every subcontract and purchase order that is subject to the Equal Employment Opportunity clause of this contract.

XVI. OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970
All contracts and subcontracts that result from this solicitation incorporate by reference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor its compliance and their subcontractor’s compliance with the applicable requirements of the Occupational Safety and Health Act of 1970 (29 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S. Department of Labor – Occupational Safety and Health Administration.

XVII. PROCUREMENT OF RECOVERED MATERIALS
Contractor and subcontractor agree to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and the regulatory provisions of 40 CFR Part 247. In the performance of this contract and to the extent practicable, the Contractor and subcontractors

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are to use products containing the highest percentage of recovered materials for items designated by the Environmental Protection Agency (EPA) under 40 CFR Part 247 whenever:

The contract requires procurement of $10,000 or more of a designated item during the fiscal year; or
The contractor has procured $10,000 or more of a designated item using Federal funding during the previous fiscal year.

The list of EPA-designated items is available at www.epa.gov/smm/comprehensive-procurementguidelines-construction-products.

Section 6002(c) establishes exceptions to the preference for recovery of EPA-designated products if the contractor can demonstrate the item is:

1. Not reasonably available within a timeframe providing for compliance with the contract performance schedule;

2. Fails to meet reasonable contract performance requirements; or

3. Is only available at an unreasonable price.

XVIII. TERMINATION FOR CONVENIENCE
The Owner may terminate this contract in whole or in part at any time by providing written notice to the Contractor. Such action may be without cause and without prejudice to any other right or remedy of Owner. Upon receipt of a written notice of termination, except as explicitly directed by the Owner, the Contractor shall immediately proceed with the following obligations regardless of any delay in determining or adjusting amounts due under this clause:

1. Contractor must immediately discontinue work as specified in the written notice.

2. Terminate all subcontracts to the extent they relate to the work terminated under the notice.

3. Discontinue orders for materials and services except as directed by the written notice.

4. Deliver to the Owner all fabricated and partially fabricated parts, completed and partially completed work, supplies, equipment and materials acquired prior to termination of the work, and as directed in the written notice.

5. Complete performance of the work not terminated by the notice.

6. Take action as directed by the Owner to protect and preserve property and work related to this contract that Owner will take possession.

Owner agrees to pay Contractor for:

1. Completed and acceptable work executed in accordance with the contract documents prior to the effective date of termination;

2. Documented expenses sustained prior to the effective date of termination in performing work and furnishing labor, materials, or equipment as required by the contract documents in connection with uncompleted work;

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3. Reasonable and substantiated claims, costs, and damages incurred in settlement of terminated contracts with Subcontractors and Suppliers; and

4. Reasonable and substantiated expenses to the Contractor directly attributable to Owner’s termination action.

Owner will not pay Contractor for loss of anticipated profits or revenue or other economic loss arising out of or resulting from the Owner’s termination action.

The rights and remedies this clause provides are in addition to any other rights and remedies provided by law or under this contract.

XIX. TERMINATION FOR CAUSE
The Contractor shall be considered in default of their contract and such default will be considered as cause for the Owner to terminate the contract for any of the following reasons, if the Contractor:

1. Fails to begin the work under the contract within the time specified in the Notice to Proceed, or

2. Fails to perform the work or fails to provide sufficient workers, equipment and/or materials to assure completion of work in accordance with the terms of the contract, or

3. Performs the work unsuitably or neglects or refuses to remove materials or to perform anew such work as may be rejected as unacceptable and unsuitable, or

4. Discontinues the execution of the work, or

5. Fails to resume work which has been discontinued within a reasonable time after notice to do so, or

6. Becomes insolvent or is declared bankrupt, or commits any act of bankruptcy or insolvency, or

7. Allows any final judgment to stand against the Contractor unsatisfied for a period of 10 days, or

8. Makes an assignment for the benefit of creditors, or

9. For any other cause whatsoever, fails to carry on the work in an acceptable manner.

Should the Owner consider the Contractor in default of the contract for any reason above, the Owner shall immediately give written notice to the Contractor and the Contractor’s surety as to the reasons for considering the Contractor in default and the Owner’s intentions to terminate the contract.

If the Contractor or surety, within a period of 10 days after such notice, does not proceed in accordance therewith, then the Owner will, upon written notification from the RPR of the facts of such delay, neglect, or default and the Contractor’s failure to comply with such notice, have full power and authority without violating the contract, to take the execution of the work out of the hands of the Contractor. The Owner may appropriate or use any or all materials and equipment that have been mobilized for use in the work and are acceptable and may enter into an agreement for the completion of said contract according to the terms and provisions thereof, or use such other

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methods as in the opinion of the RPR will be required for the completion of said contract in an acceptable manner.

All costs and charges incurred by the Owner, together with the cost of completing the work under contract, will be deducted from any monies due or which may become due the Contractor. If such expense exceeds the sum which would have been payable under the contract, then the Contractor and the surety shall be liable and shall pay to the Owner the amount of such excess.

XX. VETERANS PREFERENCE
In the employment of labor (excluding executive, administrative, and supervisory positions), the Contractor and all sub-tier contractors must give preference to covered veterans as defined within Title 49 United States Code Section 47112. Covered veterans include Vietnam-era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns (as defined by 15 USC § 632) owned and controlled by disabled veterans. This preference only applies when there are covered veterans readily available and qualified to perform the work to which the employment relates.

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ESCROW AGREEMENT TO SUBSTITUTE SECURITIES FOR WITHHELD FUNDS Pursuant to Section 22300 of the Public Contracts Code of the State of California THIS AGREEMENT made this TWENTY-FOURTH day of SEPTEMBER, 2024, by and between the CITY OF WATSONVILLE, hereafter called CITY, and S&H CONSTRUCTION, INCORPROATED hereafter called CONTRACTOR, having its main office at 5560 BOSCELL COMMON, FREMONT, CALIFORNIA 94538.

WHEREAS, Contractor has been awarded a contract by City for POLLUTION CONTROL SYSTEM – WASH RACK, AIP No. 3-06-0272-026-2024, and has executed a contract dated , 2024, with City under which contract the Contractor
is obligated to construct the above project and for which City shall pay Contractor certain progress payments from which moneys will be withhold as retentions to insure performance of the contract by Contractor;
and
WHEREAS, Contractor elects to substitute, at Contractor's expense, certain securities as eligible under Section 16430 of the Government Code or bank or savings and loan certificates of deposit equivalent to the amount withheld from progress payments.

NOW, THEREFORE, the parties agree as follows:

1. City shall hold in escrow the sum of Dollars ($ ) for the account of Contractor, as represented by securities identified below:

2. Contractor shall be the beneficial owner of any securities held by City substituted for moneys withheld and Contractor shall receive any interest thereon.

3. City will not pay out or release any escrow funds or securities except as provided in the Agreement.

4. In the event Contractor or Contractor's agents fail to perform each and every obligation of its contract with City in the manner and within the time set forth in the contract for the project, the entire amount of escrow funds or securities held in escrow shall become the property of the City upon certification from the Public Works/Utilities Director that Contractor has failed to perform its contract with City and Contractor has been given 30 calendar days written notice of its default under the contract. The escrow funds and securities which become the property of City shall be used and retained by City for the

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purpose set forth in the contract regarding withholding and retention of funds from progress payments, and such provisions are incorporated herein as if fully set forth.

5. Upon satisfaction in full and the time expiration set forth in the contract regarding withholding and retention of funds from progress payments, the amount held in escrow or securities held by City for the benefit of Contractor shall be released to Contractor by City upon certification of the Public Works/Utilities Director that Contractor has fully performed all obligations under the contract with the City.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written.

APPROVED AS TO FORM CITY OF WATSONVILLE
By
City Attorney

CONTRACTOR

HARMEET ARNAND
By
Title: CHIEF EXECUTIVE OFFICER

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SAMPLE INSURANCE CERTIFICATE
Policy Number: Commercial General Liability
THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B).

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART.

SCHEDULE
Name of Person or Organization:

City of Watsonville, its appointed and elected officials, and its employees (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you.

The insurance provided herein is primary coverage to the certificate holder with respects to any insurance or self insurance programs maintained by the certificate holder, and no insurance held or owned by the certificate holder shall be called upon to contribute to a loss.

CG 20 10 11 85

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CITY OF WATSONVILLE
Prime Contractor and All Subcontractors

WEEKLY LOCAL HIRING HOURS
Payroll Period: to Project:

Employee Name, Address, City, State, Zip Week/Hours PVWMA Resident Hours
Tri-County Resident
Hours
Outside Area
Hours
Total Hours This Period hrs. hrs. hrs. hrs.

Total Hours Previous Period hrs. hrs. hrs. hrs.

Total Hours to Date hrs. hrs. hrs. hrs.

Percent of Total Hours To Date 100 % % % %
page ____ of ____

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CITY OF WATSONVILLE
Prime Contractor and All Subcontractors
Weekly Local Hiring Hours
Payroll Period: 1-4-2004 to 1-8-2004 Project: Main Street Employee Name, Address, City, State, Zip Week/Hour
s
PVWMA Resident
Hours
Tri-County Resident
Hours
Outside Area
Hours
Bill Smith, 123 Any St., Watsonville, CA 94076 40 40
Mike Jones, 456 Main St., Corralitos, CA 95076 32 32
Fred Johnson, 789 A Street, Santa Cruz, CA 95062 40 40
Bob Walker, 33 River Street, Gilroy, CA 95020 32 32
Total Hours This Period 144 hrs. 72 hrs. 40 hrs. 32 hrs.

Total Hours Previous Period 360 hrs. 240 hrs. 80 hrs. 40 hrs.

Total Hours to Date 504 hrs. 312 hrs. 120 hrs. 72 hrs.

Percent of Total Hours To Date 100 % 62 % 24 % 14 %
page ____ of ____

1 Reso No. (CM)
Meeting Date: 092424
RESOLUTION NO.__________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE

RE-ADOPTING CONFLICT OF INTEREST CODE FOR THE CITY OF

WATSONVILLE BY INCORPORATING BY REFERENCE THE FAIR
POLITICAL PRACTICES COMMISSION’S STANDARD MODEL CONFLICT

OF INTEREST CODE AND BY AMENDING THE APPENDIX IDENTIFYING

DESIGNATED EMPLOYEES WHO SHALL BE SUBJECT TO CONFLICT OF

INTEREST CODE
WHEREAS, the City of Watsonville last adopted a Conflict of Interest Code as required by the Political Reform Act1, by Resolution No. 202-22 (CM) on September 27, 2022; and
WHEREAS, the California Fair Political Practices Commission promulgated a recommended Model Conflict of Interest Code found at Title 2, Division 6, California Code of Regulations, Section 18730, which may be incorporated by reference by local government, and which will be amended from time to time after public notice and hearings conducted by the Fair Political Practices Commission pursuant to the Administrative Procedure Act, Government Code Sections 11370, et seq; and WHEREAS, the attached Designated Positions, Exhibit “A,” accurately identifies those job titles which should be designated and the categories of financial interests which should be made reportable in Watsonville. The changes in designated employees currently reflect job classifications throughout the City; and WHEREAS, the attached Watsonville Conflict of Interest Code, Exhibit “B,” is based on 2 CCR §187302in effect as of the date this Resolution is adopted.

1 California Government Code §§ 81000, et seq
2 Amendment of subsections (b)(8.1)-(b)(8.1)(A) and (b)(9)(E) filed 12-12-2018; operative 1- 11-2019 pursuant to Cal.

Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing and printing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2018, No. 50).

2 Reso No. (CM)
Meeting Date: 092424

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:

1. That the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission along with the attached Exhibit “A,” in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict of Interest Code of the following boards, commissions, departments and agencies:

City Council City Manager
City Boards & Commissions Administrative Departments
a. Building Life Safety Appeals a. Municipal Airport
b. Library Trustees b. Community Development
c. Planning c. Finance
d. Personnel d. Fire
e. Parks and Recreation e. Innovation & Technology
Successor Agency f. Libraries
Successor Housing Agency g. Parks & Community Services
h. Police
i. Public Works & Utilities
City Attorney
City Clerk

2. That all persons holding any of the positions designated in Exhibit “A,” attached hereto and incorporated herein, are hereby instructed to file Statements of Economic Interests (Form 700) pursuant to the Conflict of Interest Code.

3. That all designated persons are hereby directed to file their Statements with the City Clerk to whom the Council hereby designates authority to carry out the duties of Filing Officer.

4. That the Filing Officer is hereby directed to make the statements of economic interests available for public inspection and reproduction no later than the

3 Reso No. (CM)
Meeting Date: 092424
second business day following the day the request was received, pursuant to California Government Code Section 81008.
******************************

Exhibit “A”

CITY OF WATSONVILLE

CONFLICT OF INTEREST CODE

DESIGNATED POSITIONS
Resolution No. _________ (CM)
All persons holding the hereafter named designations shall file a "Statement of Economic Interests” (FPPC Form 700) for each Disclosure Category being all of:

Schedule A-1-Investments; Stocks, Bonds and Other Interests Schedule A-2-Investments, Income, and Assets of Business Entities/Trusts Schedule B-Interests in Real Property
Schedule C-Income, Loans, and Business Positions
Schedule D-Income-Gifts
Schedule E-Income-Gifts: Travel Payments, Advances, and Reimbursements The economic interest to be disclosed for each disclosure category shall: (1) being or doing business within the geographical jurisdiction or service area of the City; and/or (2) is such a kind of economic interest which the employee foreseeably can affect in a material way through the conduct or operation of such employee's office with the City.

DESIGNATED EMPLOYEES DISCLOSURE CATEGORY
Council, Boards, Commissions, and Committees
Building Life Safety Appeals Members A
1BCDE
City Council Members* ABCDE
Successor Agency Members ABCDE
Successor Housing Agency Members ABCDE
Planning Commissioners ABCDE
Library Trustees A (Investment in business entities
which do or conduct business in
any way with the Library)
Parks and Recreation Commissioners BE
Personnel Commissioners E
City Attorney ABCDE
Deputy City Attorney ABCDE
Consultants
City Clerk ABCDE
Administrative Analyst ABCDE
Assistant City Clerk ABCDE
Consultants ABCDE

1 All persons required to file disclosure category A are required to file both Schedules A-1 and A-2.

Exhibit “A”

DESIGNATED EMPLOYEES DISCLOSURE CATEGORY
Deputy City Clerk BCDE
City Manager* ABCDE
Assistant City Manager ABCDE
Assistant to the City Manager ABCDE
Consultants ABCDE
Deputy City Manager ABCDE
Human Resources Analyst ABCDE
Human Resources Administrative Analyst ABCDE
Human Resources Manager ABCDE
Human Resources Senior Administrative Analyst ABCDE
Multimedia & Communications Analyst ABCDE
Personnel Officer ABCDE
Project Manager ABCDE
Public Information Officer ABCDE
Administrative Services Director (Finance) ABCDE
Accountant II ABCDE
Administrative Analyst ABCDE
Assistant Finance Director ABCDE
Assistant Finance Manager ABCDE
Assistant Finance Officer ABCDE
Consultants ABCDE
Finance Director ABCDE
Financial Analyst ABCDE
Payroll Analyst ABCDE
Senior Administrative Analyst ABCDE
Senior Financial Analyst ABCDE
Airport Director ABCDE
Airport Operations Manager ABCDE
Airport Operations Supervisor ABCDE
Consultants ABCDE
Information Technology Director (Innovation &
Technology)
ABCDE
Consultants ABCDE
Enterprise Architect ABCDE
GIS Analyst ABCDE
GIS Coordinator ABCDE
Information Technology Analyst II ABCDE
Information Technology Manager ABCDE
Network Administrator ABCDE
Senior Information Technology Analyst ABCDE

Exhibit “A”

DESIGNATED EMPLOYEES DISCLOSURE CATEGORY
Senior Information Technology Specialist ABCDE
Senior Programmer Analyst ABCDE
Community Development Director ABCDE
Administrative Analyst ABCDE
Assistant Community Development Director ABCDE
Associate Planner ABCE
Building Fire Safety Officer ABCDE
Building Inspector ABCDE
Building Official ABCDE
Code Enforcement Officer I ABCDE
Code Enforcement Officer II ABCDE
Construction Inspector ABCDE
Consultants ABCDE
Housing Manager ABCDE
Life Safety Officer ABCDE
Permit Services Supervisor ABCDE
Principal Engineer ABCDE
Principal Planner ABCDE
Redevelopment Manager ABCDE
Senior Administrative Analyst ABCDE
Senior Building Inspector ABCDE
Senior Code Enforcement Officer ABCDE
Senior Planner ABCE
Special Projects Inspector ABCDE
Supervising Plans Examiner ABCDE
Fire Chief ABCDE
Battalion Fire Chief ABCDE
Consultants ABCDE
Division Fire Chief ABCDE
Fire Captain ABCDE
Library Director BCE
Consultants ABCDE
Principal Librarian BCE
Senior Librarian BCE
Parks & Community Services Director ABCDE
Administrative Analyst ABCDE
Assistant Parks and Community Services Director ABCDE
Consultants ABCDE
Older Adult Services Supervisor ABCDE
Parks Services Manager ABCE

Exhibit “A”

DESIGNATED EMPLOYEES DISCLOSURE CATEGORY
Parks Superintendent ABCDE
Project Manger ABCDE
Promotions & Communications Coordinator ABCE
Recreation Superintendent ABCDE
Senior Administrative Analyst ABCDE
Police Chief ABCDE
Administrative Analyst ABCDE
Administrative Services Manager ABCDE
Assistant Chief of Police ABCDE
Consultants ABCDE
Crime Analyst ABCDE
Deputy Police Chief ABCDE
Network Administrator ABCDE
Police Captain ABCDE
Police Fiscal Manager ABCDE
Police Lieutenant ABCDE
Police Media & Communications Specialist ABCDE
Police Sergeant ABCDE
Property & Evidence Supervisor ABCDE
Records Supervisor ABCDE
Public Works & Utilities Director ABCDE
Administrative Analyst ABCDE
Assistant Public Works & Utilities Director ABCE
Associate Civil Engineer ABE
Building and Facilities Manager ABCDE
Capital Projects Manager ABCDE
Collection System Manager ABE
Communications & Environmental Outreach Manager ABCDE
Construction Engineer ABE
Construction Manager ABCDE
Consultants ABCDE
Environmental Projects Analyst ABCDE
Environmental Projects Manager ABCE
Environmental Sustainability Manager ABCDE
Facilities & Equipment Manager ABE
Facilities & Maintenance Supervisor ABCE
Integrated Waste Superintendent ABCDE
Laboratory Manager ABE
Municipal Services Operations Manager ABCDE
Principal Engineer ABCDE

Exhibit “A”

DESIGNATED EMPLOYEES DISCLOSURE CATEGORY
Project Manager ABCDE
Public Works Inspector ABCDE
Public Works Operations Manager ABCDE
Public Works & Utilities Administrative Services Manager ABCDE Safety & Regulatory Compliance Officer ABCDE
Senior Administrative Analyst ABCDE
Senior Capital Projects Manager ABCDE
Senior Civil Engineer ABCDE
Senior Construction Inspector ABE
Senior Engineering Associate ABE
Senior Environmental Projects Analyst ABCDE
Senior Utilities Engineer ABCDE
Solid Waste Division Manager ABCDE
Source Control Inspector ABE
Source Control Manager ABCDE
Traffic Operations Manager ABCDE
Traffic Systems Coordinator ABCDE
Utilities Maintenance Supervisor ABCDE
Utility Crew Leader ABCE
Vehicle and Equipment Manager ABCDE
Wastewater Division Manager ABCDE
Wastewater Operations Supervisor ABCDE
Wastewater Treatment Facilities Manager ABCDE
Water Division Manager ABCDE
Water Operations Supervisor ABCDE
Water Services Manager ABCDE
Water Services Supervisor ABCDE
* Filing shall be made with the City Clerk according to City Council Conflict of Interest Code and provisions of the Political Reform Act.

CITY OF WATSONVILLE

CONFLICT OF INTEREST CODE
Adopted September 24, 2024,
Resolution No. ________(CM)
(Source 2 CCR §18730)

Exhibit “B”

WATSONVILLE CONFLICT OF INTEREST CODE
Table of Contents
Section 1. Definitions.................................................................................................................................1 Section 2. Designated Employees. ...........................................................................................................1 Section 3. Disclosure Categories. .............................................................................................................1 Section 4. Statements of Economic Interests: Place of Filing...................................................................2 Section 5. Statements of Economic Interests: Time of Filing....................................................................2 Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. ...........................................3 Section 6. Contents of and Period Covered by Statements of Economic Interests..................................3 Section 7. Manner of Reporting.................................................................................................................4 Section 8. Prohibition on Receipt of Honoraria. ........................................................................................5 Section 8.1. Prohibition on Receipt of Gifts in Excess of $500. ................................................................6 Section 8.2. Loans to Public Officials. .......................................................................................................6 Section 8.3. Loan Terms. ..........................................................................................................................7 Section 8.4. Personal Loans. ....................................................................................................................7 Section 9. Disqualification. ........................................................................................................................8 Section 9.3. Legally Required Participation. .............................................................................................9 Section 9.5. Disqualification of State Officers and Employees. ................................................................9 Section 10. Disclosure of Disqualifying Interest. .......................................................................................9 Section 11. Assistance of the Commission and Counsel..........................................................................9 Section 12. Violations................................................................................................................................9 -o0oSection 1. Definitions.

The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (Regulations 18110, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.

Section 2. Designated Employees.

The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests.

Section 3. Disclosure Categories.

This code does not establish any disclosure obligation for those designated employees who are also specified in Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Sections 87200, et seq.

In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;

Exhibit “B”

(B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Section 87200; and (C) The filing officer is the same for both agencies.1
Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee's disclosure categories are the kinds of economic interests which he or she foreseeably can affect materially through the conduct of his or her office.

Section 4. Statements of Economic Interests: Place of Filing.

The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code.2 Section 5. Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than April 1. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status.
(D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office.

1 Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Section 81004.
2 See Section 81010 and Regulation 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer.

Exhibit “B”

Section 5.5. Statements for Persons Who Resign Prior to Assuming Office.

Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.

Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements.

Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code.
(B) Contents of Assuming Office Statements.

Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively.
(C) Contents of Annual Statements.

Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to Regulation 18754. (D) Contents of Leaving Office Statements.

Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.

Exhibit “B”

Section 7. Manner of Reporting.

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investment and Real Property Disclosure.

When an investment or an interest in real property3is required to be reported,4the statement shall contain the following:
(1) A statement of the nature of the investment or interest; (2) The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;
(3) The address or other precise location of the real property; (4) A statement whether the fair market value of the investment or interest in real property equals or exceeds $2,000, exceeds $10,000, exceeds $100,000, or exceeds $1,000,000.
(B) Personal Income Disclosure.

When personal income is required to be reported,5the statement shall contain:
(1) The name and address of each source of income aggregating $500 or more in value, or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source; (2) A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was $1,000 or less, greater than $1,000, greater than $10,000, or greater than $100,000;
(3) A description of the consideration, if any, for which the income was received;
(4) In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of

3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee's income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency.

Exhibit “B”

the gift; the amount or value of the gift; and the date on which the gift was received;
(5) In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
(C) Business Entity Income Disclosure.

When income of a business entity, including income of a sole proprietorship, is required to be reported,6the statement shall contain:
(1) The name, address, and a general description of the business activity of the business entity;
(2) The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than $10,000.
(D) Business Position Disclosure.

When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity.
(E) Acquisition or Disposal During Reporting Period.

In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.

Section 8. Prohibition on Receipt of Honoraria.
(A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. (B) This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official.
(C) Subdivisions (a), (b), and (c) of Section 89501 shall apply to the prohibitions in this section.
(D) This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Section 89506.

6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer.

Exhibit “B”

Section 8.1. Prohibition on Receipt of Gifts in Excess of $500. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $500 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests.
(B) This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official.
(C) Subdivisions (e), (f), and (g) of Section 89503 shall apply to the prohibitions in this section.

Section 8.2. Loans to Public Officials.
(A) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer's agency has direction and control.
(B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official's agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(C) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following:

Exhibit “B”

(1) Loans made to the campaign committee of an elected officer or candidate for elective office.
(2) Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-inlaw, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. (3) Loans from a person which, in the aggregate, do not exceed $500 at any given time.
(4) Loans made, or offered in writing, before January 1, 1998.

Section 8.3. Loan Terms.
(A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of $500 or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan.
(B) This section shall not apply to the following types of loans:
(1) Loans made to the campaign committee of the elected officer. (2) Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. (3) Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.

Section 8.4. Personal Loans.
(A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances:
(1) If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. (2) If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
a. The date the loan was made.

Exhibit “B”

b. The date the last payment of $100 or more was made on the loan.
c. The date upon which the debtor has made payments on
the loan aggregating to less than $250 during the previous 12 months. (B) This section shall not apply to the following types of loans:
(1) A loan made to the campaign committee of an elected officer or a candidate for elective office.
(2) A loan that would otherwise not be a gift as defined in this title. (3) A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due.
(4) A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
(5) A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.

Section 9. Disqualification.

No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on:
(A) Any business entity in which the designated employee has a direct or indirect investment worth $2,000 or more;
(B) Any real property in which the designated employee has a direct or indirect interest worth $2,000 or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made;
(D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or

Exhibit “B”

(E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $500 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made.

Section 9.3. Legally Required Participation.

No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section.

Section 9.5. Disqualification of State Officers and Employees.

In addition to the general disqualification provisions of section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value $1,000 or more.

Section 10. Disclosure of Disqualifying Interest.

When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest.

Section 11. Assistance of the Commission and Counsel.

Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Section 83114 and Regulations 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion.

Section 12. Violations.

This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Sections 81000-91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Section 87100 or 87450 has occurred may be set aside as void pursuant to Section 91003.

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C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx Agenda Report
MEETING DATE: Tuesday, September 24, 2024
TO: City Council
FROM: CITY ATTORNEY ZUTLER
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE ADDING CHAPTER 4 (MOBILE HOME PARK
CONVERSIONS OR CLOSURES) TO TITLE 11 (MOBILE HOMES

AND PARKS) OF THE WATSONVILLE MUNICIPAL CODE

RELATING TO MOBILEHOME PARK CONVERSIONS AND
CLOSURES; REPEALING
RECOMMENDED ACTION:

Planning Commission recommends that the City Council: Introduce, for first reading only, waiving full reading of the text, an Ordinance adding Chapter 4 entitled Mobile Home Park Conversions or Closures to Title 11 (Mobile Homes and Parks) of the Watsonville Municipal Code Relating to Mobilehome Park Conversions or Closures; Repealing Chapter 14-42 of the Watsonville Municipal Code; and Amending Section 14-16.705 (Property Development Standards) within PART 7 (R-MH—RESIDENTIAL MANUFACTURED HOME PARK DISTRICT) of Chapter 14-16 (DISTRICT REGULATIONS) within Title 14 (ZONING) of the Watsonville Municipal Code.

BACKGROUND:

California is in the midst of a statewide housing crisis, where higher land costs and property values are impacting the development and preservation of the affordable housing stock statewide. In Watsonville, as in other jurisdictions, mobile homes are an affordable housing choice for many City residents and have historically been accessible to individuals of low- and moderate incomes, older individuals, people with fixed incomes, individuals with disabilities, and vulnerable populations. Because of increasing land costs and property values, many mobilehome park owners in California in recent years have considered closing or converting their properties to other uses.1 In the event of a mobile home park owner’s decision to convert or close their parks, Staff is bringing this ordinance to implement State law protections in place for potentially

1 See, e.g., https://www.pressdemocrat.com/article/news/mobile-home-park-owner-threatens-closure-after-cotatipasses-regulation-to/; https://gvwire.com/2023/11/17/mobile-home-park-closure-halted-chavez-floats-eminent-domainproposal/.

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C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx displaced mobilehome owners, clarify the process for closure or conversion of a mobilehome park, and make clean-up changes to the Watsonville Municipal Code in conformance with these provisions.

The closure or conversion of mobilehome parks result in critical economic impacts to mobilehome owners. This is because mobilehome owners, unlike apartment tenants or residents of other rental properties, are unique in that they purchase their mobilehomes and are homeowners, but the mobilehome structures are sited on a space that is rented or leased from a mobilehome park owner. Mobilehome owners thus make substantial investments in their homes and their spaces, which could be lost due to a mobilehome park owner’s decision to close. Moreover, mobilehomes are not truly “mobile,” as relocation of a mobilehome can generally only be accomplished at substantial cost, and could result in extensive damage to the structure. Many parks also have restrictions on relocation of mobilehomes, depending on the age of the structure.

State law recognizes the unique impacts that conversion or closure of a mobilehome park could have on mobilehome residents, and prescribes a process to ensure that adverse impacts on displaced residents stemming from a park closure are appropriately mitigated. (Gov. Code § 65863.7.) State law authorizes local jurisdictions to develop additional regulations to address conversions and closures of mobilehome parks.

The City has 919 mobilehome spaces, constituting 6% of the City’s total of 14,882 housing units, and thus, mobilehomes are an important component of the City’s housing stock. Accordingly, staff recommends that the City update its regulations regarding conversion or closure of mobilehome parks, and ensure regulations are consistent with State law.

The Planning Commission considered the proposed ordinance and ordinance amendments at their regular hearing on September 3, 2024, in which the Planning Commission adopted Resolution No. 8-24 (PC) recommending that the City Council adopt WMC Chapter 11-4, amendments to WMC Chapter 14-16.705 and repeal WMC Chapter 14-42.

DISCUSSION:

To ensure that the City’s regulations regarding conversion or closure of mobilehome parks are consistent with State law, are clear, and ensure the adverse impacts on mobilehome tenants of a potential conversion or closure are mitigated, City staff proposes an ordinance which: (1) adds Chapter 4 (Mobile Home Park Conversions or Closures) to Title 11 (Mobile Homes and Parks) of the Watsonville Municipal Code Relating to Mobilehome Park Conversions or Closures; (2) repeals Chapter 14-42 (Mobile Home Park Conversions to Resident Ownership or to Any other Use) of the Watsonville Municipal Code; and (3) amends Part 7 (R-MH—RESIDENTIAL MANUFACTURED HOME PARK DISTRICT) of Chapter 16 (DISTRICT REGULATIONS) within Title 14 (ZONING) of the Watsonville Municipal Code. The actions are described in further detail below.

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C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx

1. Add Chapter 4 to Title 11 of the Watsonville Municipal Code Relating to Mobilehome Park Conversions or Closures.

The proposed ordinance has the following key features:

Special Conditional Use Permit Requirement (Proposed Sec. 11.4-130) Proposed Chapter 11.4 requires mobilehome park owners to apply for a “conditional special use permit for conversion or closure” prior to any action to convert or close the park. (Proposed Sec. 11.4-130.) The application would be considered by the City Council concurrently with any other land use approvals that the park owner is seeking. (Proposed Sec. 11.4-130(E).) The park owner must provide notice to residents of the application, and to meet with them. (Proposed Sec. 11.4-130(F).) Relocation Impact Report (Proposed Sec. 11.4-140)
Prior to the conversion or closure of a mobilehome park, State law requires park owners to file a report on the impact of such planned conversion or closure. (Gov.

Code § 65863.7.) The report is required to include “a replacement and relocation plan that adequately mitigates the impact upon the ability of the displaced residents of the mobilehome park to be converted or closed to find adequate housing in a mobilehome park.” (Gov. Code § 65863.7(a)(1).) Proposed Chapter 11.4 requires additional key information, including:
 a description of impacts of the proposed conversion on the displaced homeowners’ abilities to find and obtain adequate housing in “Comparable Mobilehome Parks,” which is defined as a park located in Santa Cruz County, Santa Clara County, or is located within 20 miles of the park proposed for conversion or closure;
 analysis of any significant economic and social impacts on the displaced residents;
 analysis of whether the park proposed for conversion or closure contains any of the City’s low- or moderate-income affordable housing stock;  analysis of the proposed closure’s consistency with the City’s Housing Element;  analysis of whether the proposed conversion will result in or materially contribute to a shortage of low- and moderate-income affordable housing within the City;  a description of each mobilehome and general characteristics of the household in order to determine the adverse impacts of the decision to convert or close the mobilehome park;
 a description of potential mitigation benefits that a displaced mobilehome resident should be provided by the park owner.

Displaced Mobilehome Owner Mitigation Benefits (Proposed Secs. 11.4-140, 150, 190)
The ordinance provides that while mitigation benefits may not exceed the reasonable cost of relocation, benefits may include, but are not limited to the following categories of expenses that face a displaced mobilehome park resident:

9/19/2024 6:26:45 PM
C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx  Payment of the cost of physically moving a displaced Mobilehome to a new site  Costs associated with replacement of or reconstruction of blocks, skirting, siding, porches, decks, awnings, storage sheds, cabanas, and earthquake bracing as necessitated by the relocation;
 Costs of insurance to protect against damage to personal property;  Security deposits and first and the last month’s rent for a new mobilehome park;  Living expenses that may occur if there is a gap between the date of displacement and Relocation to a new home;
 Payment of the appraised in-place market value of the Displaced Homeowner’s Mobilehome pursuant to Government Code Section 65863.7(a)(2)(A);  A lump sum payment to enable the purchase or relocate into another mobilehome The payment of mitigation benefits are required to be a condition of approval of the permit. The ordinance also contains a provision that if the requirement to provide mitigation benefits results in a taking, as demonstrated through an exemption application process, there is a mechanism for relief for the property owner if certain findings can be rendered.

The provisions of this ordinance protect mobilehome residents’ investments and mitigates disruptions caused by a park owner’s decision to convert or close their park, while also recognizing a park owner’s property rights.

2. Repeal Chapter 14-42 of the Watsonville Municipal Code.

Chapter 14-42 of the Watsonville Municipal Code [MOBILE HOME PARK CONVERSIONS TO RESIDENT OWNERSHIP OR TO ANY OTHER USE] was adopted by the City in 1990, and includes outdated provisions, many of which are now preempted by State law. Crucially, many of the regulations conflict with Proposed Chapter 11.4. This is relevant because Chapter 14-42 contains a provision that preempts any other provision in the Watsonville Municipal Code, stating: “any conflict between the provisions of this chapter and such other parts of this title, the provisions of this chapter shall control.” Thus, in order to ensure Chapter 11.4 is effective, Staff recommends repeal of Chapter 14-42.

3. Amend Section 14-16.705
Staff recommends amending Section 14.-16.705 of the Watsonville Municipal Code, pertaining to development standards, to clarify that Proposed Chapter 11.4 applies for regulating conversions or closures of mobilehome parks, as follows:
14-16.705 Property development standards.

Mobile homes and mobile home parks shall conform to the property development standards set forth in Chapter 1 (Local Standards and Regulations for Mobile Homes and Parks) of Title 11 (Mobile Homes and

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C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx Parks). Mobile homes on single-family residential lots shall conform to the property development standards set forth in Chapter 2 (Mobile Homes on Single-Family Residential Lots) of Title 11 (Mobile Homes and Parks). A design review permit shall be required for any new development in the R-MH Overlay District. A minor design review permit shall be required for any remodels or additions to existing facilities so long as the existing density is not increased or the number of mobile home spaces reduced. Mobile homes proposed for conversion or closure shall be subject to the standards set forth in Chapter 4 of Title 11 (Mobile Home Park Conversions or Closures).

CEQA
The provisions of the proposed Ordinance Additions and Amendments: (1) add Chapter 4 to Title 11 of the Watsonville Municipal Code Relating to Mobilehome Park Conversions and Closures; (2) repeal Chapter 14-42 of the Watsonville Municipal Code; and (3) amend Section 14-16.705 within Part 7 (R-MH—RESIDENTIAL MANUFACTURED HOME PARK DISTRICT) of Chapter 16 (DISTRICT REGULATIONS) within Title 14 (Zoning) of the Watsonville Municipal Code, is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378(a), as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment. In addition, if adoption of the Resolution were considered to be a “project”, it would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)), because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment. The Resolution does not propose or permit any new development, nor does it increase (or change in any way) the land use, density, or development regulations applicable to any property.

CONCLUSION:

Proposed Chapter 11.4 will establish a process where the City can regulate conversions or closures of mobilehome parks, and ensure that potential adverse impacts on displaced mobilehome park residents are appropriately mitigated.

FINANCIAL IMPACT:

Ordinance administration costs, including staff time, in the event a closure or conversion of a mobilehome park is proposed.

STRATEGIC PLAN:

The proposed Chapter 11.4 aligns with Council Strategic Plan Goal 3, Housing, in that the regulations set forth in the ordinance clearly regulates proposed conversions or closures of mobilehome parks, and ensures that impacts to residents by such conversions or closures are appropriately mitigated.

ALTERNATIVE ACTION:

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C:\Program Files\eSCRIBE\TEMP\18264231059\18264231059,,,Mobile Home Park Conversion Ordinance.docx The City Council could decline to introduce the ordinance or direct staff to revise the draft presented.

ATTACHMENTS AND/OR REFERENCES (If any):

1. Link to September 3, 2024, Planning Commission Packet

Attachment 1

Link to September 3, 2024, Planning Commission Packet
https://pub-cityofwatsonville.escribemeetings.com/Meeting.aspx?Id=cdf35ab3-e3cc-4f54-b704- f90004d37a7b&Agenda=Agenda&lang=English&Item=16&Tab=attachments

1 Ordinance No. ______ (CM)
Meeting Date: 092424 SWZ ______ TV ______ CDD ______
ORDINANCE NO. Introduction (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ADDING A NEW CHAPTER 4 ENTITLED MOBILE
HOME PARK CONVERSIONS OR CLORSURES OF TITLE 11 (MOBILE

HOMES AND PARKS) OF THE WATSONVILLE MUNICIPAL CODE

RELATING TO MOBILE HOME PARK CONVERSIONS OR CLOSURES
WHEREAS, mobilehome parks in the City of Watsonville are a more affordable housing choice for many older residents of the City; and, WHEREAS, the City Council of the City of Watsonville has determined that the possible conversion or closure of existing mobilehome parks in the City of Watsonville is a matter of concern and could result in detrimental impacts to the health, safety and welfare of the affected residents; and,
WHEREAS, the State of California, through Government Code Section 65863.7 and Civil Code Section 798.56, has established a procedure through which mobilehome parks may be converted to another use; and,
WHEREAS, the City Council has determined that it is necessary to specify the process by which mobilehome parks may be closed or converted to another use, consistent with State of California law.

WHEREAS, the Planning Commission of the City of Watsonville considered the item at their hearing on September 3, 2024 and adopted Resolution No. 8-24 (PC) (5-0 with one abstention) recommending that the City Council adopt the new proposed Chapter 11-4 and amendments to Chapters 14-16 and 14-42.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE DOES ORDAIN AS FOLLOWS:

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SECTION 1. RECITALS.

The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. CHAPTER 4 OF TITLE 11 ADDED.

Chapter 4 (Mobile Home Park Conversions or Closures) of Title 11 (Mobile Homes and Parks) of the Watsonville Municipal Code is hereby added, to read in its entirety as shown on Exhibit A, attached hereto and incorporated herein by reference.

SECTION 3. SEVERABILITY.

The provisions of this Ordinance are severable, and if any section, subsection, sentence, clause, phrase, paragraph, provision, or part of this Ordinance, or the application of this Ordinance to any person, is for any reason held to be invalid, preempted by state or federal law, or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. If any provision of this Ordinance is held to be inapplicable, the provisions of this Ordinance shall nonetheless continue to apply with respect to all other covered development projects and developers and/or owners. It is hereby declared to be the legislative intent of the City Council that this Ordinance would have been adopted had such provisions not been included or such persons or circumstances been expressly excluded from its coverage.

SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The proposed ordinance qualifies under the “common sense” CEQA exemption pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with virtual certainty that this ordinance, which concerns the regulation of mobile home park

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conversions or closures, will not result in a significant impact on the environment, as it does not propose or permit any new development, nor does it increase (or change in any way) the land use, density, or development regulations applicable to any property.

SECTION 5. PUBLICATION.

This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 6. EFFECTIVE DATE.

This Ordinance shall be effective 30 days from the date of final passage by the City Council.

SECTION 7. EXECUTION.

The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption.
*************************************

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Exhibit A
TITLE 11 MOBILE HOMES AND PARKS
Chapter 4
Mobile Home Park Conversions or Closures
Table of Contents
11-4.110 Findings and Purpose.
11-4.120 Definitions.
11-4.130 Application for a Special Use Permit for Conversion. 11-4.140 Relocation Impact Report.
11-4.150 Displaced Homeowner Housing Replacement and Relocation Plan and Counselor. 11-4.160 Procedures for Review of the Application for Conversion or Closure and the Relocation Impact Report.
11-4.170 Required Findings for Approval.
11-4.180 Conditional Approval of a Special Use Permit for Conversion or Closure. 11-4.190 Exemption from Displaced Homeowner Housing Replacement and Relocation Plan. 11-4.200 Acceptance and Performance of Mitigation Measures. 11-4.210 Subsequent Modification of the Mitigation Measures. 11-4.220 Expiration, Extension and Revocation of Special Use Permit or Tentative Map. 11-4.230 Measures to Prevent Interference with Homeowners’ Full Access to Their Rights 11-4.240 Preemption.

Chapter 4 of Title 11 of the Watsonville Municipal Code is hereby added to read as follows:

11.4-110 Findings and Purpose.

A. Findings
(1) Mobilehome parks are highly profitable businesses. In 2020, the Wall Street Journal article “Investors Discover There’s Gold in the Mobile Home Park” recounted the extraordinary returns obtained from manufactured mobilehome park investments:
“One of the best-performing investments since last decade’s housing crash: trailer parks . . . It is as if apartment owners didn’t have to maintain or pay taxes on their buildings but still collected rent from those who lived inside . . . Even if residents can afford to move their homes, there aren’t many places to plop an old doublewide. Plans for new parks usually meet local resistance. The right zoning is hard to find. Meanwhile, demand for manufactured homes has been stoked by retiring baby boomers, millennials with a taste for minimal living and prices for site-built single-family houses that have risen beyond the reach of many Americans . . . A who’s who of big investors has joined the trailer-park hunt, boosting competition for facilities. Buyers have included pensions, sovereign-wealth funds and private equity firms.” (See Ryan Dezember, Investors Discover There’s Gold in the MobileHome Park,WALL ST. J., Feb. 26, 2020, at B1–B2, https://perma.cc/KZ34-L6XV cited in Baar, Protections of (Im)mobile Home Owners from the Consequences of (Im)mobile Home Park Closures 128 Penn State Law Rev. 779 (2024) (2) Despite their high profitability and the extraordinary returns that they provide to their

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owners, other market factors have resulted in mobilehome park closures and conversions into other uses. When closures occur, the impacts are devastating for mobilehome owners:
investments in mobile home parks are highly profitable, in recent decades, as urban areas densify and alternate land uses, such as condominium projects, commercial centers, or high-end subdivisions, become more profitable, mobile home park closures have become widespread and are now becoming a national concern. When a mobile home park closes, it usually wipes out the mobile home owner’s entire investment in their mobile home and displaces the mobile home owner. Park closures are a large problem, as appellate courts have noted for decades, because of the “captive” nature of mobile home park tenancies and the role of public regulations in severely limiting the possible locations of mobile homes. As a practical matter, after they are moved from the factory and installed on a plot of land, “mobile” homes cannot be relocated. Generally, they are only sold in place, an unavailable option when a park closes. (See Baar, Protections of (Im)mobile Home Owners from the Consequences of (Im)mobile Home Park Closures 128 Penn State Law Rev. 779 (2024)) (3) The protection of the City’s mobilehome owners, and their substantial investments in their mobilehomes and their spaces, which usually exceed the investments of their park owners in their spaces and, in the aggregate, also exceed their park owners’ investments in their parks, further warrants additional special regulatory safeguards to protect these homeowners, their homes and their substantial and captive investments in their homes, which they would lose in the event the park that they are located in closes or converts to another use.
(4) Prior to approving a mobilehome park conversion or closure, Government Code Section 65863.7 (e)(1)(B) requires that the City make a finding as to whether the park closure and its conversion to its intended new use will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households within the City of Watsonville.
(5) Government Code Section 65863.7 (k) states that Section 65863.7 establishes a minimum standard for the local regulation of the conversion or closure of mobilehome parks, and authorizes local governments to adopt additional rules and regulations. The legislative history of Section 65863.7 explicitly recognizes that Government Code Section 65863.7 (k) authorizes local jurisdictions to adopt additional local measures regulating conversions and closures of mobilehome parks; Government Code Section 65863.7 (e)(1)(B) provides that a local agency’s legislative body must “Make a finding as to whether or not approval of the park closure and the park's conversion into its intended new use, taking into consideration both the impact report as a whole and the overall housing availability within the local jurisdiction, will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households within the local jurisdiction.” (6) Government Code Section 65583(b)(1), a provision of California’s Housing Element Law, requires the City’s Housing Element to contain goals, policies, and objectives to preserve the City’s current low-income and moderate-income affordable housing stock.

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(7) To fulfill the above requirements of California’s Housing Element Law, the City’s Housing Element contains:
1: Goal 1 to "Improve, conserve and preserve affordable housing stock and neighborhoods,
2: Policy 1.5 to "Preserve the existing stock of affordable housing, including mobile homes, through City regulations and land use and development controls, including mobile home park exclusive-use zoning, as well as financial and other forms of assistance," and 3: Five Year Objective to “Preserve the continued availability and affordability of the current affordable housing stock located in the City’s mobile home parks.” (8) Watsonville’s 2023 – 2031- Housing Element shows that the City is currently suffering a severe shortage of low- and moderate-income affordable housing. It indicates that in 2020, 10,200, 71.3%, of the City’s 14,315 households were low-income, 6,840, of which were very low- and extremely low-income households (47.85% of Watsonville's total households). Other findings in the Housing Element were: The median price for a home in Watsonville in 2023 was $820,090, but the affordable purchase price for a home for lowincome households in Watsonville was $303,300 for a one-person household and $551,100 for a five-person household; that very low-income households could only afford to purchase a home costing $173,000 for a one-person household and $250,200 for a fiveperson household, and that extremely low-income households could only afford to purchase a home for $87,000 for a one-person household and $117,500 for a five-person household.
(9) Watsonville’s 2023 – 2031 Housing Element also indicates that 9,440 of Watsonville’s households were experiencing housing “cost burdens,” with 6,165 households having to pay more than 30% of their income for housing and 3,275 households having to pay more than 50% of their income for housing. It also shows that 4,119 of Watsonville’s households were living in overcrowded conditions.
(10) The City has 919 mobilehomes and their spaces, constituting 6% of its total of 14,882 housing units and a considerably higher portion of the housing units that are affordable to low- and moderate-income households.
(11) The mobilehomes in the City’s mobilehome parks are predominantly owner-occupied.

Mobilehome owners make substantial investments in purchasing their homes and improving their homes’ spaces, but they rent those spaces from their park owners. Their mobilehomes are difficult to relocate to spaces in other mobilehome parks because of the costs of moving to spaces in other mobilehome parks. For example, some parks are not willing to accept displaced mobilehomes that are more than five or ten years old. (12) Mobilehome owners have substantial investments that will be lost if they cannot continue their tenancies in the mobilehome park where their home is located. Courts have recognized that this unique economic relationship creates a heightened need to provide special protections for the investments mobilehome owners. (13) Courts have acknowledged the special circumstances of mobilehome owners, noting that mobilehome owners make significant investments in their homes and spaces.

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The U.S. Supreme Court stated:

The term 'mobile home' is somewhat misleading. Mobile homes are largely immobile as a practical matter, because the cost of moving one is often a significant fraction of the value of the mobile home itself. They are generally placed permanently in parks; once in place, only about 1 in every 100 mobile homes is ever moved. [Citation.] A mobile home owner typically rents a plot of land, called a 'pad,' from the owner of a mobile home park. The park owner provides private roads within the park, common facilities such as washing machines or a swimming pool, and often utilities. The mobile home owner often invests in site-specific improvements such as a driveway, steps, walkways, porches, or landscaping.

When the mobile home owner wishes to move, the mobile home is usually sold in place, and the purchaser continues to rent the pad on which the mobile home is located." (Yee v. Escondido (1992) 503 U.S. 519, 523.)
Subsequently, the California Supreme Court stated:

Thus, unlike the usual tenant, the mobile home owner generally makes a substantial investment in the home and its appurtenances--typically a greater investment in his or her space than the mobile home park owner. The immobility of the mobile home, the investment of the mobile home owner, and restriction on mobile home spaces, has sometimes led to what has been perceived as an economic imbalance of power in favor of mobile home park owners (id. at pp. 170- 182) that has in turn led many California cities to adopt mobile home rent control ordinances (see id. at p. 182 [some 70 cities in California had adopted rent control as of 1992]). (Galland v. City of Clovis (2001) 24 Cal.4th 1003, 1009 [emphasis added].])
(14) Government Code Section 65863.7 recognizes that the unique circumstances of mobilehome park tenants necessitate the mitigation of adverse effects of relocation upon mobilehome park residents who are confronted with a proposed change of use for their mobilehome park or portions of the park and so that the owners and occupants of mobilehomes and the owners of mobilehome parks understand their rights and responsibilities in such situations.

B. Purposes
(1) To carry out and supplement the provisions of State law, which require the City to ensure that a proposed mobilehome park conversion or closure is consistent with the City’s General Plan, particularly with its Housing Element. It is also the intent of this Chapter to ensure compliance with the provisions of Government Code Section 65863.7, which addresses the need for park owners to provide its displaced mobilehome owners with adequate mitigation benefits to enable them to obtain adequate housing in other mobilehome parks in the event a park owner seeks to convert, close, or cease use of a mobilehome park.
(2) To ensure that the closure of a mobilehome park and its conversion to another use is consistent with the City’s Housing Element.
(3) To ensure compliance with Government Code Section 65863.7(e)(1)(B)’s requirement

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that the City must determine whether or not the approval of a conversion or closure of a mobilehome park closure will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households, taking into account both the impact report as a whole and the overall housing availability within the local jurisdiction.
(4) To effectuate Government Code Section 65863.7(k)’s authorization for the City to enact additional regulations.
(5) To provide procedures and standards for assessing the adverse impacts of a mobilehome park conversion or closure on the displaced mobilehome owners and to determine appropriate mitigation assistance to enable them to find and obtain adequate replacement housing in other mobilehome parks pursuant to Government Code Section 65863.7, the City’s police powers, and the provisions of this Ordinance. (6) To ensure that the mobilehome owners who will be displaced by a conversion or closure of their mobilehome park will receive adequate mitigation benefits to offset the impacts of the park owner’s decision to close or convert a mobilehome park. 11-4.120 Definitions.
(A) “Affordable Housing” and “Affordable Housing Stock” refer to housing, housing stock and mobilehomes that are affordable to households in the categories of low, very low, extremely low or moderate income, as defined in Health and Safety Code Sections 50079.5, 50105, 50106 and 50093(b) as measured by the housing affordability limits for those income categories that are published by the California Department of Housing and Community Development in its most recent update required by Health & Safety Code Section 50093(c). (B) “Low-Income Households” means persons and households who meet the definition of “lower income households in Health and Safety Code Section 50079.5. (C) “Very Low-Income Households” means persons and households families who meet the definition for very low-income households in Health & Safety Code Section 50105. (D) “Extremely Low-Income Households” means persons and households who meet the definition for “very low-income households” in Health & Safety Code Section 50106. (E) “Moderate-Income Households” means persons and households who meet the definition of “persons and families of moderate income” as defined in Health & Safety Code Section 50093(b) (F) “Conversion Project” or (also referred to as the “Project”) means the entire administrative review and approval process of a proposed Mobilehome Park conversion or closure, including the administrative review and approval of closing the Park and its redevelopment into its intended new use, inclusive of the entire administrative process of obtaining all of the required permits and other local approvals necessary to close and Park and convert it to its intended new use, beginning with any preliminary reviews, which may be required to identify the scope of the Project and inform the Park Owner of all of the required permits necessary to complete the Project through the approval of its intended new use. Included within a Conversion Project is the City’s review, evaluation and approval of the Project’s Special Use Permit for Conversion or Closure, Relocation

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Impact Report, Tentative Map, Development Project Permit and all other development approvals necessary to complete the Project of closing and converting the Park to its intended new use, regardless of the time at which any of the required approval applications are filed and inclusive of any required planning approvals that have not been filed at any point in time after the initiation Project that must be filed and approved of to complete the Project. (G) “Homeowner” means the owner(s) of a Mobilehome who is renting a Space in a Park from the Park Owner, and a “Displaced Homeowner” is a Homeowner who has been or will be displaced by the conversion or closure of the Park in which their home is located. (H) “Mobilehome” means a structure that is designed for human habitation and is transportable in one or more sections on a street or highway, whether commonly referred to as a manufactured home or a mobile home, including both a manufactured home as defined in the California Health and Safety Code Section 18007 and a mobile home as defined in California Health and Safety Code Section 18008. “Mobilehome” also includes a residence commonly known as a ”travel trailer,” ”recreational vehicle,” ”camping trailer, ”motor home,” “sliding camper,” “park trailer” or a “park model recreational vehicle,” which occupies a Space in a Park. (I) “Adequate Mobilehome” means an available Mobilehome, which meets all of the following criteria:
(1) Decent, safe, and sanitary and located in a Mobilehome Park that is decent, safe, and sanitary.
(2) Is comparable in floor area and number of bedrooms, bathrooms, and other rooms to the mobilehome to which comparison is being made, which housing meets the minimum standards of the Uniform Housing Code.
(J) “Mobilehome Park” (also referred to as a “Park”) means an area of land where four or more mobilehome spaces are rented out, or held out for rent, to accommodate a mobilehome, as defined in subsection (H) of this section.
(K) “Comparable Mobilehome Park” means a Mobilehome Park that is substantially similar to the Mobilehome Park proposed to be converted or closed in terms of its rent, amenities, proximity to services, proximity to the homeowner’s place of employment, its overall condition, and quality, including the condition and quality of its infrastructure, and its CalEnviroScreen score, and is located: (1) in Santa Cruz County; (2) in Santa Clara County, or (3) within 20 miles of the Mobilehome Park proposed to be converted or closed.
(L) “Mobilehome Space” (or “Space”) means an area bounded, numbered, and designated as required by 25 California Code of Regulations Section 1104 and occupied by one, and only one, mobilehome, as defined in subsection (H) of this section, or any other area commonly known to be used as a Space for a Mobilehome in a Mobilehome Park. (M) “Park Owner” means the owner or lessor of a Park, the designated agent of the Park Owner or a Developer who is in the process of obtaining a Park from the Park Owner in order to close

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and convert it to a different use, who has filed and is seeking approval of the Special Use Permit for Conversion or Closure.
(N) “Proof of Service” means written evidence that a required recipient has received a notice or other document. Proof of Service includes any United States Postal Service delivery confirmations such as certified mail or signature confirmation. If delivered personally, proof of service includes a statement signed by the recipient or attested to, under penalty of perjury, by the person effectuating the personal service.
(O) Displaced Homeowner Housing Replacement and Relocation Plan (also referred to as the “Replacement and Relocation Plan”) means the plan that is required to be filed by the Park Owner and approved by the City, under subsection (A) of Section 11.4-150 of this Chapter and by Government Code Section 65863.7(a)(1).
(P) “Community Development Department Director” (also referred to as “Director”) The director of the Watsonville Department of Community Development or their designate. 11-4.130. Application for a Conditional Special Use Permit for Conversion or Closure. (A) Until a Special Use Permit for Conversion or Closure has been approved by the City Council, pursuant to this Chapter, a Park Owner shall not convert a Mobilehome Park to any other use, close a Mobilehome Park, or cease to use the land as a Mobilehome Park, and no building permit shall be issued and no application for approval of a development agreement, a tentative or parcel subdivision map, conditional Special Use Permit or other development permit shall be approved on a property occupied by a Mobilehome Park for uses other than those associated with the Mobilehome Park use unless a Special Use Permit for Conversion or Closure has, pursuant to this Chapter, been approved by the City Council.
(B) A Special Use Permit for Conversion or Closure is a required local government permit for a change of use under Civil Code Section 798.56 (g)(2).
(C) An Application for a Special Use Permit for Conversion or Closure shall be submitted the Community Development Department Director with the filing fee prescribed by resolution of the City Council. The Director shall determine what information must be included in the Application and prepare an application form.
(D) Upon receipt of an Application for Special Use Permit for Conversion or Closure, the filing fee required by subsection (C) of this Section, and all other supporting documents, reports, and applications required by this Chapter to be filed concurrently therewith, the Director of the Community Development Department shall determine whether the filing is deemed complete. (E) The Application for a Special Use Permit for Conversion or Closure is to be considered concurrently with the required development permit(s) or approval(s) for the new intended use of the Mobilehome Park proposed for conversion or closure. (1) If the eventual new use of the conversion or closure of the Mobilehome Park is a development that requires a tentative tract or parcel map approval, under Government

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Code Section 66427.5, the Application for a Special Use Permit for Conversion or Closure must be decided upon as part of the development’s Tentative Map Application. This requirement must be complied with even if the Park Owner is not ready to file an Application for Tentative Map Approval under Government Code Section 66427.5. In such instances, the Park Owner must wait to file the Project’s Application for a Special Use Permit for Conversion or Closure until they file their Application for Tentative Map Approval for the development that will be replacing the Mobilehome Park. The City Council shall be the final decisionmaker on the Special Use Permit for Conversion or Closure. (2) If the Park Owner will not be required to obtain a tentative tract or parcel map approval for the development that will be replacing the Mobilehome Park, under Government Code Section 66427.5, but will require approval of a development agreement, a development permit, zoning change, or any other planning department application, then the Application for a Special Use Permit for Conversion or Closure, required by this Chapter, shall be filed and considered, concurrently with, and decided upon as part of the development’s planning department application approval. The City Council shall be the final decisionmaker on the Special Use Permit for Conversion or Closure. (F) Required Notices and Documents to Be Served on Homeowners by the Park Owner and Required Informational Meetings in Conjunction with an Application for Conversion or Closure.
(1) At least 30 days prior to the date of filing an Application for a Special Use Permit for Conversion or Closure under this Section, the Park Owner shall give written notice of its intention to convert or close the Mobilehome Park to all Homeowners in their Park with Proof of Service. At the same time, a copy of the notice and Proof of Service must be provided to the City. The notice shall also be posted on all entrances of the Park and on the doors, and bulletin boards in the Park’s clubhouse. The same written notice shall be provided to all prospective new Homeowners who intend to purchase a Mobilehome in the Park as soon as they contact the Park Owner about purchasing a Mobilehome in the Park or apply for approval to reside in the Park for the rental of a Space in the Park and at least 5 days prior to their payment of any space rent or deposit. (2) Upon receiving, under subsection (C) of Section 11.4-140 of this Chapter, a deemed complete copy of the Relocation Impact Report required by that Section from the Director, the Park Owner shall reproduce and provide free copies of it to each Mobilehome Owner in the affected Park at least 45 days prior to the hearing on the Application for Special Use Permit for Conversion or Closure, the Relocation Impact Report and any associated applications and reports required under this Chapter. A certified list of the names and addresses of the residents who received the Relocation Impact Report must be filed with the Director two days prior to the hearing and signed under penalty of perjury. (3) At least 30 days before the hearing on the Application for a Special Use Permit for Conversion or Closure, the Park Owner shall conduct an informational meeting with the Homeowners regarding the proposed Park conversion or closure. The meeting shall be conducted on the premises of the Park or other location acceptable to the City. At least seven days before the meeting, written notice of the meeting shall be provided to all Homeowners in the Park with Proof of Service. A copy of the notice shall be provided to

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the City. The notice shall also be posted on all entrances of the Park and on the doors, and bulletin boards in the Park’s clubhouse. A City representative and the Relocation Counselor, as described in Section 11.4-150 of this Chapter, shall attend the meeting. 11-4.140 Relocation Impact Report.
(A) The Director shall select a consultant to prepare the Relocation Impact Report required by Government Code Section 65863.7 after the submission of a conversion or closure application has been deemed complete. The applicant shall be notified, in writing, of the estimated cost of the report and shall be required to deposit that sum with the Department prior to the commencement of any work on the report. The City will then contract with a consultant for the preparation of the impact report. If, at any time during the contract period, additional monies are needed to complete the impact report, the applicant will be advised, in writing of the amount that is required. Before any additional work is performed on the report, the applicant shall provide the additional sum to the Department. Any excess funds remaining upon completion of the Relocation Impact Report shall be returned to the Park Owner.
(1) The Relocation Impact Report shall: (a) describe the impacts of the proposed conversion on the Displaced Homeowners’ abilities to find and obtain adequate housing in Comparable Mobilehome Parks; (b) analyze any other significant economic and social impacts on the Displaced Homeowners; (c) indicate if the Park contains any of the City’s low- or moderateincome affordable housing stock; (d) analyze the proposed closure’s consistency with the City’s Housing Element; (e) whether the proposed conversion will result in or materially contribute to a shortage of low- and moderate-income affordable housing within the City. (2) Each report shall additionally contain the following information:
(a) A description of the proposed new use of the Park property. If the proposed new use includes a housing component, then the description shall disclose the number and types of the housing units being proposed by size and the estimated offering sales prices or monthly rents and other charges for each proposed housing unit. (b) A proposed timetable for the closure of the Park.
(c) A legal description of the Park.
(d) The number of spaces in the Park.
(e) Information about the Mobilehome Owners and the Mobilehomes in the Park.

The Consultant shall mail a questionnaire to each Mobilehome Owner in the Park seeking the following information and then include the responses in the Relocation Impact Report:
(i) The size, number of bedrooms and bathrooms, manufacturer and date of manufacture of the Mobilehome on the space.
(ii) The number of occupants of the Mobilehome and their length of

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residency in the Park, their ages, and if any or attending school. (iii) The total monthly space rent currently charged for each space with details showing the Space rent, utility charges, and any other costs paid by the Homeowner.
(iv) The annual income of each of the household.
(v) The current Homeowner’s Mobilehome’s purchase price and date of purchase.
(vi) The estimated costs of any improvements that the current Homeowner has made to the Mobilehome, including, but not limited to, patios, porches, pop-out rooms, and any recent major improvements to the home, including, but not limited to, a new roof or new siding.
(vii) A description of any handicap, disability, or special need of any of the Homeowners or members of their households.
(viii) Other information that the Director deems relevant. (f) The “in-place” value that each of the Mobilehomes in the Park would have if the Park were not being closed, assuming the Park's continued safe, sanitary, and well-maintained condition. The value shall be determined by appraisals by a qualified appraiser chosen by the Director. The Park Owner shall pay for the cost of the appraisals.
(g) The date of purchase and price paid for the Park by the current Park Owner, the date and price of any subsequent capital improvements to the Park and the price paid by the prior owner of the Park and date of purchase. (h) An appraisal of the Park, including its 1) value if it is continued in its use as a rental Mobil home Park, 2) value if it is used for the highest and best Special Use Permitted by the current zoning for the site, and 3) value if the new zoning requested by the Park Owner is approved. The City shall select the appraiser. The fee for the appraisal shall be paid by the Park Owner.
(i) A summary statement containing information on the Park Owner’s total investment in the Park with the Homeowners’ total investments in their Mobilehome and their Spaces in the Park, presented in real dollars and current dollars adjusted for inflation.
(j) The estimated cost of relocating into an Adequate Mobilehome located in Comparable Mobilehome Parks, including the purchase prices of those homes and the costs of moving into them, such as the required first and last month’s rent and security deposits.

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(k) A list of Comparable Mobilehome Parks , including their Space rents, their residency requirements (e.g., income-to-monthly housing costs residency approval ratio, age restrictions, pet policy), whether the listed Parks have any vacant Spaces and, any restrictions on the age, size, type and condition of the Mobilehomes that the parks will to accept.

(l) Estimates from two moving companies selected by the City and qualified to move Mobilehomes of the cost of moving each Mobilehome in the Park, including the costs of permits and of tearing down and setting up the home at the new location including the cost of any upgrades to comply with applicable building, plumbing, electrical and health and safety codes and the cost of moving any improvements, including, but not limited to, patios, porches and pop-out rooms. (m) The rental rates in the Park being proposed for conversion or closure for each of the three years prior to filing the application for a Special Use Permit for conversion.
(n) The number, if any, of the Mobilehomes located in the Park that are occupied by, or affordable to, households in each of the housing affordability categories of low-, very low-, extremely low- or moderate-income, as defined in of the Health and Safety Code Sections 50079.5, 50105, 50106 and 50093(b), that will be eliminated by the Park’s conversion or closure. If there are any such households, then the Relocation Impact Report shall analyze whether or not the development replacing the Park will contain housing that is affordable to those households in the above income categories.
(o) Proposed displaced Homeowner mitigation benefits, which shall be determined on an application-by-application basis with regard to the facts and circumstances of the application. Mitigation benefits may include, but are not limited to, all of the following benefits that are reasonably necessary to fully mitigate the adverse impacts of the Park’s conversion or closure on the ability of the displaced Homeowners to obtain and relocate into adequate housing in other Mobilehome Parks, provided that mitigation benefits shall not exceed the reasonable cost of relocation, as documented in the Relocation Impact Report:
(i) Payment of the cost of physically moving a displaced Mobilehome to a new site, including the teardown and setup of the home and any movable improvements such as patios, carports, and porches; packing and packing; moving and unpacking all personal property.
(ii) Replacement or reconstruction of blocks, skirting, siding, porches, decks, awnings, storage sheds, cabanas, and earthquake bracing as necessitated by the relocation.
(iii) Indemnification for any damage to personal property of the displaced Homeowner caused by the relocation.

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(iv) Payment of a lump sum to compensate for payment of the first and last month's rent and any security deposit at the new Mobilehome Home Park. (v) Reasonable living expenses of the displaced Homeowner and the members of their household from the date of actual displacement to the date of occupancy of the new site or home.
(vi) For any of the Homeowners’ Mobilehomes that cannot be relocated, the proposed mitigation benefits may include, but is not limited to: (1) payment of the appraised in-place market value of the Displaced Homeowner’s Mobilehome pursuant to Government Code Section 65863.7(a)(2)(A); (2) the option of lump sum payments to those Homeowners in an amount that will enable them to purchase and relocate into Adequate Mobilehomes that are located in Comparable Mobilehome Parks.
(aa) If the appraised value is insufficient to allow a Displaced Homeowner to purchase an Adequate Mobilehome in a
Comparable Mobilehome Park, then the proposed mitigation benefits may include payment of the reasonable cost of purchasing an available Adequate Mobilehomes located in a Comparable Mobilehome Park
(bb) If there is a legal owner of any displaced Homeowner’s current Mobilehome, then the lump sum payment shall be sufficient to satisfy the remaining obligation owed by the Homeowner to the legal owner under the Homeowner’s Mobilehome purchase loan and to reimburse the Homeowner for their remaining invested equity in their Mobilehome as demonstrated in the appraisal required by this Section. If the Homeowner is required to be paid the reasonable cost of purchasing an available Adequate Mobilehome that exceeds the appraised value of their current Mobilehome, then the benefits, required to be listed under this subsection for them, shall be the aggregate of their remaining invested equity, after the payoff of their loan to their home’s legal owner, and the difference between the appraised value of their current Home and the actual purchase price of an available Adequate Mobilehome.
(p) Any other information that the Director determines is relevant to address the specific issues raised by the application, the impact study, and the requirements of State law and Watsonville’s laws.
(B) The Displaced Homeowner Housing Replacement and Relocation Plan required by Government Code Section 65863.7(a)(1) that complies with the requirements of Section 11.4-150 of this Chapter shall be prepared by the consultant as part of the Relocation Impact Report, and

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it must be evaluated and approved, conditionally approved or disapproved concurrently with the Relocation Impact Report and the Application for a Special Use Permit for Conversion or Closure. (C) The Director shall review the Relocation Impact Report and determine if it is complete in accordance with this Section. Upon determining that the Relocation Impact report is complete, the Director shall issue a notification of the date of the public hearing on the Application for Special Use Permit for Conversion or Closure will be held. The Director shall also cause notice of the hearing to be sent to each Mobilehome Owner in the affected Park at least 45 days prior to the hearing. At that time, the Director shall also provide a copy of the Relocation Impact Report to the Park Owner and shall set the hearing date in conjunction with the timing of the Park Owner’s reproduction and distribution of these documents required by subsection (F)(2) of Section 11.4- 130 of this Chapter.
11-4.150 Displaced Homeowner Housing Replacement and Relocation Plan and Counselor. (A) Pursuant to Government Code Section 65863.7(a)(1), the Park Owner shall file a Replacement and Relocation Plan, which shall be prepared by the consultant, and is required to contain all of the following:
(1) The amount and type of the mitigation benefits, which pursuant to Section 11.4-140 of this Chapter, are required to be listed in the Relocation Impact Report, that it proposes to be provided by the Park Owner to all of the Homeowners, including whether those benefits are proposed to enable them to relocate into an available Space in a Comparable Mobilehome Park or to purchase and relocate into an available Adequate Mobilehome that is located in a Comparable Mobilehome Park.
(2) In cases in which the report proposes relocating Mobilehomes into available Spaces in other Comparable Mobilehome Parks, the Plan shall demonstrate that:
(a) The Mobilehomes are physically capable of being relocated. (b) There are a sufficient number of available Spaces in Comparable Mobilehome Parks to accommodate all of the Homeowners whom the Relocation Plan proposes to relocate in this manner.
(c) The Homeowners will be able to meet the income and other residency requirements of the Parks where the Spaces are located. (d) The mitigation benefits, which the Replacement and Relocation Plan proposes to be paid to the Homeowners, will be sufficient to accomplish their proposed relocations.
(3) For the Homeowners whom the Replacement and Relocation Plan proposes to relocate by providing benefits to enable them to purchase and relocate into Adequate Mobilehomes, which are located in Comparable Mobilehome Parks, the Plan shall demonstrate that:

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(a) There are a sufficient number of Adequate Mobilehomes for sale in Comparable Mobilehome Parks to accommodate all of the Homeowners whom the Plan proposes to relocate in this manner.
(b) The Homeowners will be able to meet the income and other residency requirements of the Parks in which the Adequate Mobilehomes are located. (d) The mitigation benefits, which the Replacement and Relocation Plan proposes to be paid to the Homeowners, will be sufficient to accomplish their proposed relocations.
(4) If there is a legal owner of a Homeowner's current Mobilehome and the Relocation Plan requires the Homeowner to surrender it to the Park Owner in exchange for their proposed mitigation benefit payments, then the Replacement and Relocation Plan shall provide for the appropriate amounts of their mitigation benefit payments to be divided and paid to both the Homeowner and to the legal owner, as provided for in subsection (A)(2)(o)(vi)(bb) of section 11.4-140 of this Chapter.
(B) Relocation Counselor. A Relocation Counselor, selected by the City and paid for by the Park Owner, shall provide information about the available housing resources and assist with the selection of suitable relocation alternatives. Acceptable alternatives include available Adequate Mobilehomes and Comparable Mobilehome Spaces and, to the extent that they are acceptable to both the Homeowner and the Park Owner, rental apartments and ownership housing units, both affordable and market-rate units. The Relocation Counselor shall be familiar with the region's housing market and qualified to assist the Homeowners in evaluating, selecting, and securing placement in the replacement housing, and may assist with: arranging for the moving of all of the Homeowner household’s personal property and belongings to the replacement housing, providing financial advice on qualifying for various housing types of housing, explaining the range of housing alternatives available, and gathering and presenting information regarding available housing. The Relocation Counselor shall assist in preparing and implementing the Replacement and Relocation Plan.
(C) Payment of Mitigation Benefits to the Homeowners. The mitigation benefits listed in an approved Replacement and Relocation Plan shall be required as a condition of approval of a Special Use Permit for Conversion or Closure, and shall be paid to the displaced Homeowners in the following manner:
(1) As soon as the application of the Special Use Permit for Conversion or Closure, Relocation Impact Report, Replacement and Relocation Plan, and related approvals required by this Chapter have been approved by the City Council, the Park Owner shall promptly pay those benefits to the Homeowner, to any former Homeowner eligible for such benefits, or to any person, firm or corporation performing relocation-related services for the Homeowner, as the Homeowner may direct, but not less than sixty (90) days prior to the date that the Homeowner is required to vacate the Mobilehome Park. (2) If the Homeowner is required to surrender their Mobilehome to the Park Owner in

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exchange for the lump sum relocation benefit provided in subsection (A)(2)(o)(vi) of Section 11.4-140 of this Chapter, then, in conjunction with receiving payment of their benefits, the Homeowner, and any legal owner of the Mobilehome shall be required to submit to the Park Owner all documents necessary to transfer complete title and ownership of the Mobilehome to the Park Owner, free and clear of all security interests, liens, or other encumbrances.
(3) The Park Owner may not, as a condition of being paid their benefits required by this Chapter, require a Homeowner to waive of rights to appeal or otherwise challenge the adequacy of: the Relocation Impact Report, the Displaced Homeowner Replacement Housing and Relocation Plan, the benefits approved of, the approval of the development replacing the Park, or any related approvals or aspects of the Conversion Project. 11-4.160. Procedures for Review of the Application for Conversion or Closure and the Relocation Impact Report.
(A) When the Application for a Special Use Permit for Conversion or Closure and the Relocation Impact Report have both been received from the Park Owner and the consultant and deemed complete by the Director, the Director shall set a time, date, and place for the hearing of the Relocation Impact Report and related reports or applications required under this Chapter by the City Council.
(B) If the Mobilehome Owners in the Park proposed to be converted or closed, provide written notification to the Director that they will be jointly represented at the hearing on the Application for Special Use Permit for Conversion or Closure and provide the name, telephone number and address of that representative, then, through that representative, the Homeowners will be given equal time with the Park Owner in presentations in the hearing. If either side relies on the testimony of any expert witness(s), or if the City retains and relies on the testimony of an independent expert witness(s), then each side and the City have the right to cross-examine such witnesses. Each side has the right to be provided with any written materials relied upon by the expert witness(es) in their testimony or conclusions. Written submissions shall be provided to the opposing side and to the City at least 15 days prior to the scheduled date of the hearing. . (C) The City Council shall, within 60 days after the close of the public hearing, issue a decision on whether the Special Use Permit for Conversion or Closure should be approved based upon the findings set forth in Section 11.4-170.
(D) The decision of the City Council is final.
11-4.170 Required Findings for Approval.
(A) Findings Required for Approval of a Special Use Permit for the Conversion or Closure of a Mobilehome Park and of its Relocation Impact Report. An application for the Special Use Permit for Conversion or Closure required by this Chapter and for the Relocation Impact Report required by Government Code Section 65863.7 and by Section 11.4-140 of this Chapter may be approved only if the following findings are made:
(1) That the Displaced Homeowner Housing Replacement and Relocation Plan meets all of the requirements of Section 11.4-150 of this Chapter, including that it will provide all of

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the Park’s Displaced Homeowners with sufficient mitigation benefits to enable them to obtain and relocate into adequate housing in other Mobilehome Parks or into other housing to the extent that the other housing is agreed upon by the Displaced Homeowner and the Park Owner.
(2) That the mitigation benefits, which are listed in the Replacement and Relocation Plan to be provided to all of the Displaced Homeowners, have been listed as a condition of approval in the Project’s Special Use Permit for Conversion or Closure, the Relocation Impact Report, any required Tentative Map and in any of the Project’s other development approvals required for the development intended to replace the Mobilehome Park proposed to be converted or closed.
(3) That an adequate Relocation Impact Report has been submitted to the City and approved that complies with the provisions of Government Code Section 65863.7 and with the requirements of Section 11.4-140 of this Chapter.
(4) That the proposed conversion or closure of all or part of the Mobilehome Park is not inconsistent with the City’s Housing Element.
(5) That the proposed conversion will not be detrimental to the public health, safety and general welfare.
(B) Additional Finding Required for the Closure of a Mobilehome Park When Approval of the Park’s Conversion to Another Use is Not Concurrently Being Requested. When an application for the closure of a Mobilehome Park is not also seeking approval of its conversion to another use, additional findings must be made that: The Park Owner has filed a certificate, signed under penalty of perjury, attesting that the Park Owner is not seeking an early closure of the Park in order to avoid any requirements of this Chapter or of controlling State or federal law that regulate the conversion of Mobilehome Parks to other uses. (C) The findings required by any subsections of this Section may be excused only if the Park Owner, pursuant to Section 11.4-190 of this Chapter, files an Application for Exemption from the requirements of this subsection and if that exemption is granted pursuant to the provisions of Section 11.4-190 of this Chapter.
11-4.180. Conditional Approval of a Special Use Permit for Conversion or Closure.

The City may grant a conditional approval by attaching conditions of approval. The conditions must be sufficient to enable the displaced Homeowners to obtain Adequate Mobilehomes or Mobilehome Spaces in other Comparable Mobilehome Parks. Alternatively, the conditions may provide other adequate replacement housing that both the Homeowners and the Park Owner have agreed to, which are sufficient to preserve the low- and moderate-income housing stock Such conditions may include, but are not limited to, the following:
(A) The mitigation benefits listed in the Relocation Impact Report and Displaced Homeowner Housing Replacement and Relocation Plan will be paid to every Homeowner in the Displaced Homeowner Replacement Housing and Relocation Plan.
(B) Any other payment, provision or measure that the City finds will mitigate the adverse impacts

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of a Park’s conversion or closure on the ability of the Displaced Homeowners to obtain adequate housing in other Mobilehome Park.
(C) Any mitigation benefits do not exceed the reasonable cost of relocation. 11-4.190. Exemption from the Displaced Homeowner Housing Replacement and Relocation Plan.
(A) After receiving a Relocation Impact Report, which has been deemed complete, a Park Owner may file an application for a partial or total exemption from the obligations to provide the Displaced Homeowner mitigation benefits. Notice of such application, and Proof of Service thereon, with the information contained therein, shall be made on the Mobilehome Owners of the Park proposed to be Converted or Closed.
(B) Upon receiving an exemption application under this Section, the Director shall determine if it is complete. The hearing date shall be held in conjunction with the hearing on the Application for a Special Use Permit for Conversion or Closure under this Chapter. The Director shall determine if the employment of experts will be necessary or appropriate for a proper analysis of the exemption application. If the Director so determines, they shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the Park Owner. The Exemption Application and the Application for a Special Use Permit for Conversion or Closure shall not be further processed until the Park Owner has paid to the City the estimated cost of expert analysis. Any unused portion for payments so collected shall be refunded to the Park Owner.
(C) An Exemption Application shall be based on either of the following bases:
(1) The current use of the Park is not economically feasible, or that a requirement to provide displaced Homeowner mitigation benefits would eliminate substantially all reasonable use or economic value of the property for alternate uses, or would otherwise result in a taking.
(2) A court of competent jurisdiction has determined in connection with a bankruptcy proceeding that the closure or cessation of use of said property as a Mobilehome Park is necessary and that such court has taken further action that would prohibit or preclude payment of relocation assistance benefits, in whole or in part. (D) Any Exemption Application made pursuant to subsection (C)(1) of this Section shall contain, the following information:
(1) Statements of profit and loss from the operation of the Mobilehome Park for the most recent five-year period prior to the date of the application or request, as certified by a certified public accountant;
(2) Evidence supporting the Park Owner’s assertion that the continuing to use of the property as a Mobilehome Park is economically infeasible; (3) The estimated total cost of the displaced Homeowner mitigation assistance; (4) Other information that the Director deems to be relevant in a review of the application.

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(E) Any Exemption Application filed pursuant to subsection (C)(2) of this Section shall be accompanied by adequate documentation as to the title, case number, and court in which the bankruptcy proceeding was held, and copies of all pertinent judgments, orders, and decrees of such court.
(F) Where an exemption from having to provide Displaced Homeowner mitigation assistance has been applied for based upon the impact of providing such assistance, the City Council shall make one of the following findings:
(1) That the Park Owner shall not be exempt from the Homeowner mitigation benefits obligations because substantial evidence has not shown that both of the following are true:
(a) That the continued use of the property as a Mobilehome Park would substantially eliminate all economically viable use of such property, and (b) That the cost of the displaced Homeowner mitigation assistance benefits would eliminate substantially all economically viable use of the property, or would otherwise result in a taking.
(2) That the Park Owner shall be exempt from the displaced Homeowner mitigation benefits requirement, in whole or in part, because substantial evidence has shown that either or both of the following are true:
(a) That the continued use of the property as a Mobilehome Park would substantially eliminate all reasonable use of such property, and (b) That the cost of the Homeowner mitigation assistance benefits would eliminate substantially all reasonable use or economic value of the property, or would otherwise result in a taking.
(3) In making findings on an Exemption Application under this Section, the City Council may take into account the financial history of the Mobilehome Park; its condition and the condition of its amenities and improvements thereon; the cost of any necessary repairs, improvements or rehabilitation of such Park; the estimated cost of the Displaced Homeowner mitigation assistance; the fair market value of the property for the proposed alternative use; the fair market value of the property for continued use as a Mobilehome Park; and other relevant evidence.
(G) Where an exemption from having to provide the displaced Homeowner mitigation assistance benefits has been applied for based upon bankruptcy proceedings, pursuant to subsection (a) of this section, the planning commission shall make one of the following findings:
(1) That the Park Owner shall be exempt from the displaced homeowner mitigation benefits requirement in whole or in part, if a court in connection with a proceeding in bankruptcy has determined that both that the closure or cessation of use of said property as a Mobilehome Parkis necessary and has taken further action which would prohibit or preclude payment of such benefits, whether in whole or in part. In rendering its decision, the Planning Commission shall have the power to eliminate or waive all or portions of the requirements of this section to the extent necessary to comply with the court’s judgment, order or decree.

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(2) That the Park Owner shall not be exempt from the displaced Homeowner mitigation assistance benefits requirement based upon any actions of a Court of Bankruptcy, because substantial evidence has not shown that any such court has ordered the closure or cessation of use of said property as a Mobilehome Park, or that such court has prohibited or precluded the imposition of such obligations, or both. (H) The approval of an exemption from the Displaced Homeowner mitigation assistance benefits requirement shall not have the effect of eliminating the requirements of the applicable portions of the Special Use Permit for Conversion or Closure, the Relocation Impact Report, the Displaced Homeowner mitigation requirements required by this Chapter, which were not explicitly exempted under this Section.
11-4.200. Acceptance and Performance of Mitigation Measures. (A) The Park Owner shall execute and record a certificate and file proof thereof with the Director, accepting the mitigation benefits imposed on the approval of a change of use or closure within ninety days of the final action approving the change of use and shall give the Homeowners the six- or twelve-month notice of the termination of tenancy and closure of the park required by Civil Code Section 798.56(g) within one hundred twenty days of that action. An approval of a change of use shall automatically become null and void if the certificate accepting the conditions is not executed and filed within ninety days of the date of the approval of the change of use or the notice of termination of tenancy has not been given within one hundred twenty days of that resolution.

All mitigation benefits imposed on the approval of conversion or closure shall be fully performed as to each Homeowner prior to that Homeowner’s required vacation of the Mobilehome Park unless otherwise provided in the mitigation measure. No eligible Homeowner shall be required to vacate a Space unless the Park Owner is in full compliance with all mitigation measures imposed pertaining to such Homeowner and has otherwise fulfilled the notice requirements of this Chapter and of the California Mobile Home Residency Law relating to termination of tenancy. (B) No building permit shall be issued for the development of any real property which has been, or is being, converted from a mobilehome park or closed pursuant to this chapter unless and until the City has approved the change of use or closure and the park owner has fully complied with the mitigation requirements required.

11.4-210. Subsequent Modification of the Mitigation Measures.

After a Special Use Permit for Conversion or Closure has been approved and after the Park Owner has executed and recorded a certificate of acceptance of its conditions, modification of the mitigation conditions imposed, including any additions and deletions, may be considered by the City upon the filing of a written application by the Park Owner, or the Park Owner’s authorized representative. Modification may be granted if there has been a change in circumstances or new information has become available that could not reasonably have been known or considered at the time of the hearings on the Special Use Permit for Conversion or Closure. Examples of such new information or changed circumstances include, but are not limited to, revised plans by the Park Owner or a change in the availability of relocation Spaces or Mobilehomes. Modification shall not be granted when it would unreasonably prejudice the ability of the Homeowners to relocate to Adequate Mobilehomes. All relevant substantive requirements, notice requirements to the Homeowners, and the procedural and appeal conditions specified in this Chapter shall be

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followed to obtain Planning Commission approval of such an application to modify mitigation conditions under this section.
11-4.220. Expiration, Extension, and Revocation of Special Use Permit. (A) Expiration. An approved Special Use Permit shall become automatically null and void if the Park's conversion has not occurred within twelve (24) months of its effective date unless that date has been extended as provided in this Section.
(B) Extension. Upon application by the Park Owner filed with the Director on or before the date of expiration of the Special Use Permit , or other required approval relating to the conversion or closure of the Mobilehome Park or the development replacing it, the approvals may be extended by the City Council, if the City Council finds that their termination would constitute an undue hardship to the Park Owner and that the continuation of their approval(s) would not be detrimental to or have any further adverse impact on the Homeowners in the Park. In approving an extension, the City Council may subject the applicable permit approval to any conditions of approval deemed necessary to mitigate any adverse impacts resulting from the extension. Multiple extensions may be granted, but no one (1) extension shall be issued for more than twelve (12) months. (C) Revocation. The Council or the Planning Director may initiate proceedings to revoke the Special Use Permit. The Planning Director shall give written notice of the hearing to the Park Owner and the Homeowners at least 30 days prior to the hearing. The City Council may, by resolution, revoke the applicable approvals if any of the following findings are made:
(1) Approval was obtained by fraud, deceit or misrepresentation. (2) The Park Owner is either not currently or has not been in compliance with its conditions of approval contained or with the provisions of this chapter. (3) A revocation shall be effective fifteen (15) days after the date of the action by the City Council.
11-4.230 Measures to Prevent Interference with Mobilehome Owners’ Access to Their Rights.
(A) A Park Owner shall not require a Homeowner to sign a waiver, lease or rental agreement if it includes a waiver of the Homeowner’s rights under this Chapter, including but not limited to the right to receive the mitigation benefits approved of under this Chapter or the right to oppose the Special Use Permit Application or to contest the adequacy of the related approvals for the Project, including those necessary for the approval of the development that is intended to replace the Park under this Chapter. Any such waiver of rights shall be deemed to be invalid and void. (B) If any Application for a Special Use Permit for Conversion or Closure is withdrawn or denied, the Park Owner shall immediately inform in writing all Homeowners who were previously given notices or announcements regarding the proposed conversion or closure.

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11-4.240 Preemption. In the event any provisions of this Chapter conflict with a provision of State law, this Chapter shall be interpreted and applied in conformity with State law.

1 Ord No. (CM)
Reference: Ordinance No. 835-90 (CM) (Repeal)
Meeting Date: 092424 SWZ ______ TV ______ CDD ______
ORDINANCE NO. Introduction (CM)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE AMENDING SECTION 14-16.705 (PROPERTY DEVELOPMENT
STANDARDS) WITHIN PART 7 (R-MH-RESIDENTIAL MANUFACTURED HOME PARK DISTRICT) OF CHAPTER 14-16 (DISTRICT REGULATIONS) AND REPEALING CHAPTER 14-42 (MOBILE HOME PARK CONVERSIONS TO RESIDENT OWNERSHIP OR TO ANY OTHER USE) WITHIN TITLE 14 (ZONING) OF THE WATSONVILLE MUNICIPAL CODE
WHEREAS, mobilehome parks in the City of Watsonville are a more affordable housing choice for many older residents of the City; and, WHEREAS, the City Council of the City of Watsonville has determined that the possible conversion or closure of existing mobilehome parks in the City of Watsonville is a matter of concern and could result in detrimental impacts to the health, safety and welfare of the affected residents; and,
WHEREAS, the State of California, through Government Code Section 65863.7 and Civil Code Section 798.56, has established a procedure through which mobilehome parks may be converted to another use; and,
WHEREAS, the City Council has determined that it is necessary to specify the process by which mobilehome parks may be closed or converted to another use, consistent with State of California law.

WHEREAS, the Planning Commission of the City of Watsonville considered the item at their hearing on September 3, 2024, and adopted Resolution No. 8-24 (PC) (5-0 with one abstention) recommending that the City Council adopt the new proposed Chapter 11-4 and amendments to Chapters 14-16 and 14-42.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

2 Ord No. (CM)
Reference: Ordinance No. 835-90 (CM) (Repeal)
Meeting Date: 092424
SECTION 1. RECITALS
The recitals set forth above are true and correct and incorporated herein by this reference.

SECTION 2. CHAPTER 14-42 REPEALED.

Chapter 14-42 is hereby repealed in its entirety, incorporated herein by reference.

SECTION 3. SECTION 14-16.705 WITHIN PART 7 OF CHAPTER 14-16 AMENDED.

Section 14-16.705 within Part 7 of Chapter 14-16 of Title 14 of the Watsonville Municipal Code is hereby amended, to read in its entirety as shown on Exhibit A, attached hereto and incorporated herein by reference.

SECTION 4. SEVERABILITY.

The provisions of this Ordinance are severable, and if any section, subsection, sentence, clause, phrase, paragraph, provision, or part of this Ordinance, or the application of this Ordinance to any person, is for any reason held to be invalid, preempted by state or federal law, or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. If any provision of this Ordinance is held to be inapplicable, the provisions of this Ordinance shall nonetheless continue to apply with respect to all other covered development projects and developers and/or owners. It is hereby declared to be the legislative intent of the City Council that this Ordinance would have been adopted had such provisions not been included or such persons or circumstances been expressly excluded from its coverage.

SECTION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT

3 Ord No. (CM)
Reference: Ordinance No. 835-90 (CM) (Repeal)
Meeting Date: 092424
The proposed ordinance qualifies under the “common sense” CEQA exemption pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with virtual certainty that this ordinance, which concerns the regulation of mobilehome park conversions or closures, will not result in a significant impact on the environment, as it does not propose or permit any new development, nor does it increase (or change in any way) the land use, density, or development regulations applicable to any property.

SECTION 6. PUBLICATION.

This ordinance shall be published in the Watsonville Register-Pajaronian and/or Santa Cruz Sentinel in compliance with the provisions of the Charter of the City of Watsonville.

SECTION 7. EFFECTIVE DATE.

This Ordinance shall be effective 30 days from the date of final passage by the City Council.

SECTION 8. EXECUTION.

The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption.

Exhibit A
Sec. 14-16.705 Property development standards.

Mobile homes and mobile home parks shall conform to the property development standards set forth in Chapter 1 (Local Standards and Regulations for Mobile Homes and Parks) of Title 11 (Mobile Homes and Parks). Mobile homes on single-family residential

4 Ord No. (CM)
Reference: Ordinance No. 835-90 (CM) (Repeal)
Meeting Date: 092424
lots shall conform to the property development standards set forth in Chapter 2 (Mobile Homes on Single-Family Residential Lots) of Title 11 (Mobile Homes and Parks). A design review permit shall be required for any new development in the R-MH Overlay District. A minor design review permit shall be required for any remodels or additions to existing facilities so long as the existing density is not increased or the number of mobile home spaces reduced. Mobile homes proposed for conversion or closure shall be subject to the standards set forth in Chapter 4 (Mobile Home Park Conversions or Closures) of Title 11 (Mobile Homes and Parks).
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Mobilehome Park Conversion or Closure
Ordinance

Why update
the City Code?
• Chapter 14-42 of WMC Adopted in 1990
• (Mobile Home Park Conversions to Resident
Ownership or to Any other Use)
• Outdated
• Not consistent with State Law
• State law sets the minimum standards and authorizes
local jurisdictions to develop additional regulations to address conversions and closures of mobilehome
parks
• Ensure that City’s regulations are consistent with State Law and sets a clear process for mobilehome park
owners and residents regarding conversion or closure
of mobilehome parks
• Staff requested City Attorney’s Office prepare updates to Municipal Code.

Background
on the City’s
Mobilehome
Parks
• 9 mobilehome parks
• 919 mobilehome spaces
• 6.2% of City’s housing stock
• Largest mobilehome park has 276 spaces

Current State
Law Regarding
Conversions or
Closures
(Gov. Code §
65863.7)
• Prior to a mobilehome park’s conversion to another
use or closure, park owners are required to submit an
impact report to the City
• The report must include a replacement and relocation
plan that “adequately mitigates” the impact of the
conversion or closure on displaced homeowners
• The City Council is required to hold a hearing on the sufficiency on the report
• Before approval, the City Council must make a finding about whether approval of the park’s closure or
conversion would “materially contribute to a shortage
of housing opportunities and choices for low- and
moderate-income households within the local
jurisdiction”

Current State
Law Regarding
Conversions or
Closures:

Mitigating
Adverse
Impacts
• A replacement and relocation plan is required as part of the impact report, detailing each displaced
homeowner’s ability to find adequate housing in a
mobilehome park
• If a displaced homeowner cannot obtain adequate
housing in another mobilehome park, a park owner
“shall pay to the displaced homeowner the in-place
market value of the displaced resident's mobilehome”
• The City may require as a condition of approval of a
change in use that the park owner “take steps to
mitigate any adverse impact of the conversion”

How the
Ordinance
Interacts with
State law
• Requires a Special Conditional Use Permit for any park conversion or closure; State law does not have this land use regulation element
• Requires park owners submit a Relocation Impact Report, as required by State law; Ordinance spells out in detail the information needed in the report to make it easier to
determine mitigation benefits.
• Requires park owners provide mitigation benefits (already a state law requirement), but makes it easier for the City to determine what those are.
• Includes an exemption from the requirement for providing mitigation benefits if there will be a taking

Overview of
Proposed
Chapter 4 to
Title 11
• Requires mobilehome park owners to apply for a “conditional special use permit for conversion or closure” prior to any action to convert or close the park.
• The permit application goes to the Community Development Director; • The application must be considered concurrently with a new use if proposed; • At least 30 days prior to filing the application, the Park Owner is required to provide a notice to homeowners of the intent to close or convert; • At least 30 days before the hearing on the application, the park owner is required to have an informational meeting with homeowners.
• Requires the preparation of a Relocation Impact Report with specified information included in the report.
• The Council sets a hearing date upon receiving both the use permit application and a complete Relocation Impact Report.
• The use permit expires within two years unless extended. • A use permit can be revoked if conditions of approval are not complied with, or approval was obtained by fraud, deceit or misrepresentation.

Relocation
Impact Report
• The Relocation Impact Report must include specific information analyzing:
• the impacts of the proposed conversion on the Displaced Homeowners’ (residents) abilities to find and obtain adequate housing in Comparable Mobilehome Parks;
• significant economic and social impacts on the Displaced Homeowners; • whether the Park contains any of the City’s low- or moderate income affordable housing stock;
• the proposed closure’s consistency with the City’s Housing Element; • whether the proposed conversion will result in a shortage of low- and moderate-income affordable housing within the City;
• a description of the proposed new use of the Park property and timetable for closure;
• the results of a questionnaire to the homeowners to ascertain the impacts.

Displaced
Homeowner
Housing
Replacement
and
Relocation Plan
and Exemption
• “Displaced Homeowner Housing Replacement and
Relocation Plan”
• Must explain mitigation benefits to displaced homeowner • Benefits “shall not exceed the reasonable cost of relocation” • Exemption: A park owner may file an application for a partial or total exemption from the obligations to
provide the displaced homeowner mitigation benefits
by showing that:
• The current use of the Park is not economically feasible, or would result in a taking; or
• The City is not authorized to impose the requirement because of a bankruptcy proceeding

Planning Commission’s Recommend Action to the
City Council
Introduce, for first reading only, waiving full reading of the text, an Ordinance adding Chapter 4 entitled Mobile Home Park Conversions or Closures to Title 11 (Mobile Homes and Parks) of the Watsonville Municipal Code Relating to Mobilehome Park Conversions or Closures; Repealing Chapter 14-42 of the Watsonville Municipal Code; and Amending Section 14-16.705 (Property Development Standards) within PART 7 (R-MH—RESIDENTIAL MANUFACTURED HOME PARK DISTRICT) of Chapter 14-16 (DISTRICT REGULATIONS) within Title 14 (ZONING) of the Watsonville Municipal Code.

Saulo Londoño
Regional Representative — Northern California/Bay Area
Western Manufactured Housing Communities Association
2295 Gateway Oaks Drive, Suite 240, Sacramento CA 95833 d 714.227.4009
email | map | wma.org
From: Saulo Londono
To: cityclerk
Subject: Re: Item 11.a Mobilehome Park Conversions or Closures Date: Monday, September 23, 2024 11:13:25 AM
Attachments: Outlook-A blue and
Esteemed CouncilI am writing as a representative of the Western Manufactured Housing Communities Association (WMA), and on behalf of mobilehome park owners in Watsonville. We write to strongly oppose the adoption of the mobilehome park conversion/closure ordinance that is being considered today.

First and foremost, this ordinance is unnecessary. There are no examples of mobilehome parks in Watsonville that are threatening to, or planning to close down or convert.

The ordinance is also counter-productive. It is a regulatory behemoth, with risk of eventually leading the city and taxpayers through needless and costly litigation. WMA members, mobilehome park owners and operators, are in the business of managing mobilehome parks. They are not builders or land developers. It is the city itself which will feel the impact of this counter-productive policy. Watsonville has its own affordable housing targets in its general plan. This ordinance would be a clear step in the wrong direction, giving the city less, not more, flexibility as it struggles to meet its targets over the next 20, 30, 40 years.

Instead, we advocate for the city to partner with us. We can develop a closer bond and working relationship by meeting face to face and engaging in productive conversations to solve actual problems that exist today.

Mobilehome park owners and operators in Watsonville are valuable housing providers who care about and are proud of the community they have built.

We want to be a part of the housing solution in Watsonville, but ordinances like these do not move any of us in the direction of solving that problem.

Please vote against the adoption of this expensive and burdensome ordinance, and work with your housing providers to find creative solutions to the affordable housing problems of the future.

Regards,

From: Susan French
To: Jimmy Dutra; cityclerk
Subject: Council Meeting Tonight 9/24/24
Date: Tuesday, September 24, 2024 7:16:17 AM
Dear Mr. Dutra,
I understand you are the council member for District 6 which is where i reside. I live in a Mobile Home Park and was made aware of a
Meeting tonight that is very important to me. I am a disabled senior living in a Mobile Home Park and feel there are not enough
Protections for people like me living within a Park that collects monthly space rent. I am a homeowner and have lived here for many years.

It has recently come to my attention that there may be future developers who want to turn land in the city of Watsonville, and convert them to high rise Apartments and condos to house more people for low income housing. I have considered this Park to be low income as I have been under Rent control. As a disabled senior, if a developer came in and wanted to buy this land this Park sits on, i would not have the funds or means to move out.

Therefore, i would become homeless. The cost of living, and moving expenses, coupled with the high cost of living in Santa Cruz County, it would Be financially impossible to search for other homes here.

I believe what most homeowners want, is protection. Protection from developers, protections for keeping this Mobile Home Park a low income park and retain the rent control.

I have come to know many families living here, and i can tell you, there are Veterans, Seniors, Children with disabilities, and hard working families which includes agriculture workers.

It just wouldn't make sense to dispose of this Park to build other low income units (only to the Park owner, who can make money off a sale of the Park}.

Can you support placing protections in place so our communities in Mobile Home Parks, are not forced to face impossible challenges and be evicted to move without any financial help and support? I hope you consider what is being presented in the Council Meeting. I am just one voice, but i felt compelled to tell my side of this important story.

Thank you,

Susan French
P.S. As a side note, is the new Law going into affect in 2025 that helps renters with credit reporting, applicable to Mobile Home space renters also?

September 24, 2024

Local salsa makers competed this
weekend for the title of Watsonville’s
best salsa.

Salsa y Salsa

Future meeting will be held in
January/February
https://bit.ly/3VOa5Up
Traffic Advisory
Committee

Watsonville
Homeless Plan
Council Special Meeting
Saturday, October 5th, 9am - 1pm

1 Good Neighbor Protocol
The purpose of this Good Neighbor protocol is to establish and maintain positive relationships among the shelter/interim housing/navigation center operator, program participants, and the community. Along with shelter program staff, program participants must commit to be good neighbors to the community, respecting the site as well as the surrounding community. This means that everyone works to support in maintaining a clean and safe environment free of litter, loitering, and noise pollution.

Maintaining a Clean Environment
• Shelter program must support efforts in maintaining a clean community, both in and out of the property.
• Participants should pick up after themselves and are encouraged to pick up litter when possible. • All trash and litter should be placed in appropriate garbage receptacles and dumpsters on property. When garbage receptacles are full, participants should notify staff so it can be addressed.
• Vehicles owned by participants should also be kept in good repair when in the community. Nonoperable vehicles should not be stored at or near the program site. • Shopping carts are not allowed on, around, or near the shelter site at any time. • Guests can only smoke in designated smoking areas and must properly dispose of all cigarette butts.

Proper Hygiene & Attire
• Shelter program participant’s personal hygiene must be kept at what staff deem appropriate to maintain a clean and sanitary environment.
• Proper clothing must be worn in common areas and outside of the shelter site at all times to maintain modesty; this includes a top, bottom, and shoes.

Noise
• Courtesy Hours must be observed at all times. This means participants must keep the volume of any radio, TV, stereo, or musical instrument sufficiently reduced at all times to not disturb others.

The use of headphones is highly encouraged.
o Program participants and visitors must also refrain from excessively loud talking or singing at all times.
o Vulgar and obscene language must be kept to a minimum. o These courtesy points should be considered when in the surrounding community as well.

2 o Similarly, noise should be kept to an acceptable level while in vehicles in and around the shelter site.
• Quiet Hours are established between the hours of 9 pm & 8 am. o Quiet hours are periods when noise must be kept to a minimum and must be contained within a program participant’s sleeping unit.

Site Security
• Security cameras will monitor the shelter area and perimeter of the property. • Guests must be approved by the onsite supervisor.
o Any guest threatening the safety of program staff, or the public will be discharged from the program.
o Guests of participants must adhere to applicable areas of this protocol. o Overnight guests are strictly prohibited.
• Loitering, camping, and informal food and clothing distribution around the site will not be allowed.

Community and Coordination with the Neighborhood
• At least once per year, program operators shall distribute a flyer to the surrounding neighborhood that:
o Invites them to an open house where they can receive updates regarding shelter operations and provide a venue for neighbors and businesses to provide feedback. o Offers other means of contact information for neighbor grievances and inquiries.

ii

LEAD ME HOME

MONTEREY AND SAN BENITO COUNTY CONTINUUM OF CARE

OPERATIONAL STANDARDS FOR

EMERGENCY SHELTERS
*Edited to accommodate Encampment Resolution Funding Program Requirements. Original approved by the Lead Me Home Continuum of Care.

iii

iv

TABLE OF CONTENTS

1. INTRODUCTION / OVERVIEW..................................................................................................... 1 A. Background and Purpose ............................................................................................................... 1 B. Programs Covered by These Standards .......................................................................................... 1 C. Guiding Principles for Shelters...................................................................................................... 2 D. State of CA Housing First Principles.............................................................................................. 2

2. SHELTER ACCESS.......................................................................................................................... 3 A. Eligibility Criteria and Screening................................................................................................... 3 B. Admission, Intake, and Readmission Policies................................................................................. 4

3. SERVICES STANDARDS ................................................................................................................ 5 A. Housing-Focused Case Management ............................................................................................. 5 B. Service Linkages...........................................................................................................................8

4. PROGRAM OPERATIONS.............................................................................................................. 9 A. Program Rules...............................................................................................................................9 B. Time Limits and Extensions........................................................................................................... 9 C. Termination/Disenrollment ............................................................................................................ 9 D. Facility Access..............................................................................................................................9 E. Gender Identity and Sexual Orientation........................................................................................ 10 F. Service Animals, Emotional Support Animals, and Pets............................................................... 10 G. Participant Rights & Responsibilities........................................................................................... 11 H. Grievance and Appeal Procedures................................................................................................ 11 I. Participant Involvement and Feedback......................................................................................... 11 J. Reasonable Accommodations...................................................................................................... 12 K. Emergency Preparedness/Natural Disasters.................................................................................. 12 L. Data Collection, Quality Assurance, and Reporting...................................................................... 12 M. Staff Training.............................................................................................................................. 13

5. FACILITIES, HEALTH, AND SAFETY ....................................................................................... 13

v
A. Facility Standards........................................................................................................................ 13 B. Communicable Diseases.............................................................................................................. 15

6. GLOSSARY..................................................................................................................................... 15

7. RESOURCES .................................................................................................................................. 16  CoC Program Interim Rule .......................................................................................................... 16

8. Encampment Resolution Funding Addendum ............................................................................... 17 A. Background and Purpose............................................................................................................. 17 B. Fiscal Deadlines.......................................................................................................................... 17 C. Reporting Deadlines.................................................................................................................... 17 D. Eligible Uses............................................................................................................................... 18 E. HMIS.......................................................................................................................................... 19

1 1. INTRODUCTION / OVERVIEW
A. Background and Purpose
The Monterey and San Benito County CoC Shelter Standards provide the policy framework for emergency shelter programs located within these two counties. These standards have been developed collaboratively by the primary funders of shelter in the community: the Coalition of Homeless Services Providers (CHSP), County of Monterey, County of San Benito, City of Salinas and United Way of Monterey County.

The purpose of these standards is to:
• Create a baseline set of funder expectations for shelter program operations • Ensure shelter programs are operating in alignment with known best practices in the field, including Housing First principles and practices.
• Ensure all participants who access emergency shelter have a similar experience, regardless of funding source.
• Provide all local funders of shelter with a common set of standards for the programs they fund.

These general standards serve as minimum requirements for the operation of shelter programs in Monterey and San Benito Counties. The standards outlined in this manual are designed to provide a framework that individual shelter programs can align to. Each individual provider or program will be expected to develop and maintain policies and procedures consistent with this umbrella set of standards.

Some funding sources have specific requirements. The program operator shall ensure that each program complies with all funder requirements. If any funder requirements are not aligned with these standards, the program will ensure compliance with all funding requirements. In those cases where a specific funding regulation does not align with these standards, the program operator will notify CHSP of the situation to discuss possible options and strategies. The program operator will also note the reason(s) for any inconsistencies in their written program documentation.

B. Programs Covered by These Standards
The Lead Me Home CoC Written Standards define “Emergency Shelter” as: facilities providing shelter in a permanent location, for a limited period of time, to individuals and families having neither a home nor the meansto obtain a home or othertemporary lodging. Shelters provide timelimited accommodations in either a congregate or non-congregate setting.

These shelter standards cover emergency shelter programs receiving funding from any of the following sources:
• HUD Emergency Solutions Grant (ESG)
• Community Development Block Grant (CDBG)
• State of California Homelessness Housing, Assistance and Prevention (HHAP) • State of California Permanent Local Housing Allocation (PLHA) • Community Action Agency/Community Services Block Grant (CSBG) • State of California Encampment Resolution Funding (ERF) Programs receiving funding from alternative sources may also align to these standards to ensure community-wide continuity in shelter services.

2 Seasonal shelters are activated in inclement weather or cold/wet winter weather. Seasonal shelters may not offer the same level of services as a year-round shelter and may not be able to align to all the standards detailed in this document. Seasonal shelter operators should, however, strive to comply with these operational standards to the maximum extent possible given space and funding constraints.

Transitional housing provides time limited housing but with longer lengths of stay and more intensive services than emergency shelter. Transitional housing programs are not covered by these standards.

C. Guiding Principles for Shelters
The Monterey and San Benito County CoC maintains a strong commitment to prevent and end homelessness for county residents, with the goal of reducing the total population of people experiencing homelessness by 50% by June 2026. The CoC recently adopted a Five-Year Strategic Plan that provides a roadmap for the CoC and its partners to coordinate, align, and focus their efforts to maximize impact on reducing homelessness.

The strategies and policies adopted by Monterey and San Benito County CoC, jurisdictions (Counties and Cities), funders, providers and other key stakeholders are guided by the following principles:
• Embedded with dignity and respect: The homelessness response system’s efforts center the needs of people requesting assistance by delivering individualized, comprehensive, and culturally competent services. Strengths-based, person-centered, trauma-informed, and harm reduction-based approaches are integrated into all aspects of service design and delivery. • Informed by people with lived experience of homelessness: People experiencing homelessness are experts of their personal needs; the homelessness response system honors and elevates their input on service design and delivery. • Housing-focused: The solution to homelessness is housing; all efforts of the homelessness response system work towards the goal of helping people gain and maintain stable, permanent housing situations.
• Data-driven towards results: Strategies and priorities for reducing homelessness will be informed by data to best serve people experiencing homelessness, achieve desired outcomes, and guide strategic investments in programs and services. • Coordinated: The homelessness response system and other systems of care will communicate and partner towards shared goals of improving service linkages and reducing homelessness.
• Equitable and social justice oriented: The homelessness response system acknowledges the barriers to housing and resource connection that disproportionately impact people by race, ethnicity, gender, and other identities. The system adopts intentional policies and programs to reduce these disparities and advance equity in system experiences and outcomes.

D. State of CA Housing First Principles
The State of California has adopted a set of Housing First requirements that apply to programs receiving funding from a range of sources, including HHAP and ERF. Some of these requirements are only applicable to permanent housing programs, but others are applicable to both shelter and housing. Shelter providers are expected to comply with the State of California’s Housing First requirements as applicable to

3 emergency shelter programs. The requirements may be found in the Welfare and Institutions Code (WIC) Section 8275(b). Additional information on Housing First may be found at the California Interagency Council on Homelessness (CA-ICH) website at: https://bcsh.ca.gov/calich/resources.html

2. SHELTER ACCESS
To ensure consistency with Housing First principles and ensure that people who are unsheltered have streamlined access to available shelter beds, shelter programs should adopt policies for eligibility and screening that impose minimal barriers to access.

A. Eligibility Criteria and Screening
Screening Criteria
Each shelter program in Monterey or San Benito County will establish its own eligibility criteria in compliance with applicable funding sources. Funder-mandated eligibility restrictions are allowed and may include factors such as: maximum income levels, convictions for specific criminal offenses (e.g., sex offender), minimum or maximum age of participants (e.g., must be at least 18, must be 18-24), veteran status and other factors.

Shelter programs shall not adopt additional eligibility or screening criteria beyond what is required by a funding source. In particular, providers shall not impose additional targeting or screening criteria designed to identify whether an individual or household is “suitable” or housing ready,” such as:
• Sobriety or participation in treatment services
• Employability or employment readiness
• Income or ability to pay rent
• “Motivation” or willingness to participate in services • Proof of citizenship/immigration status
Shelter programs will adopt policies and procedures that “screen in” individuals and households with higher barriers to housing, including:
• Adult individuals and families who are unsheltered (living outdoors or in vehicles); • Households with no, low or fixed income;
• Adults with disabilities, including behavioral health issues (mental illness, substance use); • People with limited or no employment history; and
• People with criminal records and/or evictions.

Shelter programs may conduct a service needs assessment as part of the screening and admission process, but only for the purpose of developing a housing-focused case plan with the participant and determining their immediate needs. Service needs or other types of assessments are not to be used to make eligibility and admission decisions. However, shelters may decline to accept a participant if there is a clear safety issue (see below).

4 Safety Screening
Shelters may use their screening procedures to identify individuals who might pose a safety concern to other shelter participants, including, for example, recent history of violent behavior. Criteria for assessing safety concerns must be clear and objective to the maximum extent possible. These instances should be rare and the reason for the refusal to serve a participant must be documented. Shelters may also terminate a client’s participation after enrollment should they receive information that raises concerns about safety.

Compliance with Federal Requirements
Shelter Programs will operate in compliance with the Department of Housing and Urban Development’s (HUD) Equal Access to Housing Final Rule, ensuring that all individuals have equal access and accommodations to shelter, regardless of gender, gender identity, sexual orientation, and/or marital status.

Programs must have policies to ensure compliance with Fair Housing rules and implement a set of policies and procedures to provide reasonable accommodations for households with disabilities.

Screening Criteria Relating to Youth and Families
Programs should ensure they are operating in compliance with HUD requirements relating to involuntary separation of families. The CoC and ESG Interim Rules require that the age and gender of a child under age 18 must not be used as a basis for denying any family admission to a project that receives funds through the CoC or ESG program.

Unaccompanied minors may only be served with agreement of a legal guardian or appropriate authorities. Basic Center Programs (BCP) projects serving runaway youth must create a MOU between their programs and child welfare agencies that clarify roles, responsibilities and define the provision of services at the time youth enter shelter. This requirement is in accordance with the Runaway and Homeless Youth Act.

No one under the age of 18 should be allowed to reside in a single-adult shelter. If a household with minors presents for service at a single-adult shelter, shelter staff should refer the family to more appropriate services.

B. Admission, Intake, and Readmission Policies
Admissions
Shelters are required to create policies and procedures for accepting individuals into their shelter programs including procedures for intake and readmission policies. Admission policies must specify the process individuals or families should follow to request access to shelter including how to contact the shelter, times of day when intakes are conducted, and waiting list procedures (if applicable).

Whenever possible programs shall work to divert participants seeking shelter entry by encouraging them to re-connect with family or friends who could temporarily or permanently house them.

5 Shelter Intake Documents
Shelter intake documents should be compliant with funding source requirements and should not impose additional or unnecessary barriers to access. The following are examples of intake documents that may be required.

1. Personal identification; at least one photo ID is preferred.

1. Documentation of Homelessness or At-Risk status per federal guidelines.

2. Income self-declaration.

3. HMIS Intake form.

4. Signed Release of Information (ROI)

5. Signed acknowledgement of receiving program rules or requirements.

6. Signed acknowledgement of receiving any other participant rights and responsibility.

7. Signed acknowledgement of receiving an agency grievance procedure. All participants will be provided a copy of the procedure.

Shelters should adopt policies that allow for maximum flexibility to make exceptions in cases where a participant cannot secure a needed document. Shelters should also do everything possible to minimize the number and length of forms to be completed by participants to ensure the intake process is not creating barriers to access.

Readmission
Shelter providers shall develop written policies regarding the conditions under which participants who have been exited from a program for violations of rules may be re-admitted. Policies may include conditions under which participants may be “banned” either temporarily or permanently. If a shelter program chooses to have policies regarding bans (due to significant safety concerns and/or related to “time out” periods where participants may not access shelter for a certain amount of time after exiting the program), the program will maintain documentation of their “ban” policies, the grievance/appeal process, and documentation of the reason for any bans that occur. All shelter providers should operate low barrier programs and strive to avoid banning participants whenever possible, utilizing techniques and resources such as harm reduction and de-escalation. Bans should be reserved for instances where participants pose safety threats to other program participants and/or staff.

3. SERVICES STANDARDS
A. Housing-Focused Case Management
The primary purpose of shelter is to provide a safe place for participants to stay while they quickly implement a plan to secure housing. To meet this objective, the primary support service intervention offered at shelter programs is housing-focused case management and service linkages.

Shelter case managers will respond to participants’ immediate and short-term service needs, complete an initial housing needs assessment, and develop a housing-focused case plan to secure and sustain housing.

Case managers will work to identify and build upon participants’ strengths. Additionally, case management will provide linkage to appropriate services and supports, including housing retention planning and retention services, as well as continued monitoring and follow-up regarding participant

6 progress and ongoing needs. The goal of the housing-focused case management is to help participants locate and move to a permanent housing situation as quickly as possible and to retain their housing once they leave shelter. Permanent housing includes market housing, senior housing, affordable housing, shared housing situations, moving in with a relative or friend, obtaining housing with a voucher or subsidy, or any housing situation that is not time limited.

Case management is offered to all participants, not only participants who are there for longer stays or participants in certain parts of the shelter program(s).

Shelter providers may establish rules strongly encouraging participants to participate in case management. However, participants should not be discharged from shelter for failure to attend case management meetings. Case managers will engage with and develop a rapport with each participant, using engagement techniques such as motivational interviewing, and offer assistance that is relevant and useful to addressing the goals and needs the participant has identified to reach the goal of re- entering permanent housing as quickly as possible.

While service participation should be voluntary, shelters are not expected to allow participants to stay in shelter indefinitely if they are not participating in case management or housing search activities. If shelter staff have made robust efforts to engage a participant and “meet them where they are,” yet the participant declines to participate, the shelter may provide the participant with an exit date. Shelters should have a written policy laying out their process and criteria for determining whether to terminate participation for a participant on the basis that they not engaging in the process of developing a housing plan or taking steps along a pathway to housing.

Case Manager Responsibilities
Responsibilities of the case manager shall generally include:
• Employ a person-centered, strengths-based approach that tailors case management to each participant/household. Case management is individualized to each participant or household; case managers actively work to identify the unique needs and goals of each participant. • Develop individual housing plan with each participant/household, with participant participation, covering goals related to housing and other needed services. Housing plan templates should limit the number of goals and action steps to be included in a single plan in order to focus attention on housing and related goals. • Assist the participant with exploring potential housing resources, such as shared housing, reunifying with relatives, and identifying friends or relatives who could provide housing options. • Support participants to draw on their existing support networks, and help participants identify people already in their lives who can help with specific things, such as transportation or childcare.
• Implement Housing First principles, focusing on addressing participants’ housing needs and goals.
• Employ harm-reduction and trauma-informed care to tailor services to participants’ needs.

7 • Work collaboratively with any other programs/staff that are providing services to the participant while in the program (e.g., a rapid re-housing program case manager). Shelter case managers will work to ensure a smooth transition and continuity of care with a participant’s new or additional case manager. Ensure collaboration and clear roles and responsibilities on case plan and housing goals.
• Support participants to manage conflict and/or any other problems that may be presented during their shelter stay.
• Provide services that are culturally appropriate and have needed language abilities. Multi-lingual case managers should be available as needed.
• The case manager will support the participant with housing search and assist the participant in obtaining and moving into housing, including helping participants resolve or mitigate tenant screening barriers like rental and utility arrears or multiple evictions, as well as obtain necessary identification or other documents if needed.
• Support participants to access services for which they are eligible and that will help support s successful transition to housing.
• Case managers may offer budgeting assistance when desired by participants.

Case Manager Supervisory Responsibilities
Responsibilities of the Case Manager Supervisor shall generally include:
• Monitor the Case Managers duties and accomplishments throughout their engagements with participants. It is the supervisor’s responsibility to ensure that case managers are properly connecting participants to services and resources, tracking information for participant record and HMIS usage, and general compliance with case management responsibilities. • The supervisor should provide support and training opportunities to the Case Managers when needed to ensure strong supportive services for the participants in the shelter program.

Case Loads
Case managers will generally maintain a manageable caseload of households, to the extent this is feasible given funding constraints. Shelters are expected to operate with no more than 20 participants assigned to each case manager (1:20 case manager to client ratio).

Case Manager Training
Case management staff should be provided with initial training and orientation and ongoing training, supervision, and support. Programs will conduct ongoing training, supervision, and quality assurance to ensure consistency and compliance with program policies including housing-focused case management policies, trauma-informed approaches, sexual harassment, harm reduction, de-escalation, and housing first principles. Programs will also ensure that all case management staff maintain updated knowledge of community-based services such as mainstream benefits, employment services, childcare resources, behavioral health services, and other services.

8 All staff will have written job descriptions that include requirements that they focus on activities relating to obtaining housing, while maintaining participant-centered, low barrier, safe programs.

The program shall have a case review process, as well as ongoing staff supervision and training, to help staff problem-solve around housing plans and around participants who are having difficulty following the established housing plan and/or other challenges while residing at the shelter.

B. Service Linkages
The shelter program shall collect, maintain, and update records of available mainstream and community resources for program participants. This includes community resources that can reduce burdens on income to increase resources to pay for housing costs, including employment opportunities, food banks, clothing consignment stores, mainstream benefits (including CalFresh, WIC, Medi-Cal/health coverage, General Assistance, and CalWORKs) low-income utility programs, childcare resources, and others. Additionally, it is recommended that case managers utilize the Smart Referral Software developed and maintained by United Way of Monterey County to increase service connections and facilitate sending referrals to services.

The program will collaborate with providers that provide domestic violence specific services to determine most appropriate housing or shelter plans for participants who are experiencing or have experienced domestic violence, and to connect participants with applicable domestic violence survivor services
Additional Supportive Services & Voluntary Service Participation As a general matter, supportive services in shelter programs are offered and encouraged, however participation is not mandatory. Programs may offer health and behavioral health services, employment and training services, budgeting classes, life skills, parenting classes and other types of support, but participation is not mandatory as a condition of receiving assistance. Programs may set up savings programs in which participants are supported to save some of their income for move-in expenses once they secure housing. However, savings programs cannot be mandatory.

Programs will utilize motivational interviewing and other engagement techniques to encourage participants to participate in supportive services.

Services for Families with Children
In accordance with federal requirements, each family shelter will consider the educational needs of children in households experiencing homelessness to the greatest extent possible and ensure that staff are trained and knowledgeable about these educational needs and rights of children staying in shelter.

If a family with children is not already connected to McKinney Vento services, the shelter staff should connect them to either the Monterey County or San Benito County Office of Education to ensure the family is receiving the services available to them.

9 4. PROGRAM OPERATIONS
A. Program Rules
In keeping with the principles of participant self-determination and to ensure that programs have low barriers to participation, Shelter Programs should establish program rules that foster an environment of trust, are clear and reasonable, and are focused ensuring that all participants have a safe environment in which to live. Program rules should not mandate participation in services as a condition of remaining in the program. Rules should be enforced consistently using a transparent process.

To the extent feasible, shelter providers should involve shelter participants in shelter governance and the development of shelter rules. Rules should be reviewed regularly to ensure they support the overall goal of creating a housing-focused, participant-centered, safe environment.

B. Time Limits and Extensions.

Each shelter will establish its own rules relating to how long participants may stay in the program. The overall focus of shelter services should be to help participants exit to a permanent housing situation as quickly as possible. To the extent shelters have a fixed maximum length of stay, exceptions should be available for participants who are in the process of securing housing to ensure they are able to transition directly from shelter to housing.

C. Termination/Disenrollment
Involuntary exit from shelter should always be a last resort. Program rules and services should be designed to support participants to access the support they need to participate in the shelter program and to exit as rapidly as possible to housing. Shelter leadership and staff should strive as much as possible to avoid discharging participants who struggle to comply with rules or to participate in services, approaching these challenges through a trauma-informed lens. Staff should be trained in traumainformed care, conflict resolution, de-escalation and motivational interviewing to equip them with the tools needed to work with clients who are challenging to engage and support. (See also section on Training)
Programs will maintain written grievance policies and procedures regarding involuntary exits/asked to leave situations. Participants will be made aware of the grievance procedures.

D. Facility Access
Shelter providers shall establish written policies regarding when and how program participants may access the shelter program facility during the course of their stay. In alignment with Housing First principles and practices, programs should maximize the ability of participants to come and go as they choose and not impose curfews or requirements that participants must leave the site during the day.

The written program policies should cover:
• Times of day when program participants may enter and leave the program • Policies regarding any visitors (how many, when they can visit, how long they can stay) • Policies to prevent unauthorized people from entering the facility, to protect the safety of participants and staff – such as by having a 24/7 staffed front desk, locked gate or door with

10 controlled access to ensure only participants are entering the building, or other method for securing access to the site.

E. Gender Identity and Sexual Orientation
Shelter programs should affirmatively develop and implement policies to prevent discrimination and create a welcoming environment for people regardless of their gender identity. Policies should cover, at a minimum:
• Access, intake and enrollment – gender identity or sexual orientation is not a reason to deny access to emergency shelter
• Room or bed assignments – Assignment should be made based on the gender that the client identifies with, while also taking into consideration the client’s views with respect to their personal health and safety. Participants should not be isolated based on their gender identity. • Bathrooms – participants should be permitted to use the bathroom that corresponds to the gender they identify with. To the extent feasible, shelters should offer a gender-neutral or unisex bathroom.
• Creating a welcoming environment for people who identify as transgender, including:
o Adopting a formal policy of respect
o Asking participants their preferred pronouns and taking care to not misgender participants
o Using gender neutral terms if the participant’s gender is unknown o Refraining from asking unnecessary questions or making remarks regarding a participant’s gender
o Using inclusive language in program materials (posters, forms, written policies, etc.) o Taking reasonable steps to address participant privacy or safety concerns • Providing training to staff on gender identity and gender expression, appropriate use of language, how to create an inclusive and respectful environment and the requirements of HUD’s Equal Access Rule.
• Providing participants with service connections and linkages to organizations and programs for the LGTBQIA community.

Shelter providers are encouraged to consult: Equal Access for Transgender People - Supporting Inclusive Housing and Shelters when developing operational policies.

F. Service Animals, Emotional Support Animals, and Pets Each shelter will establish a clear written policy regarding pets. All shelters should allow service animals for people with disabilities. Shelters may establish a policy regarding what documentation or verification is required for an animal to be considered a service animal.

Shelters are not required to accept pets (i.e., non-service animals), however, allowing participants to have pets is a key element of lowering barriers to shelter access. Shelter providers are encouraged to adopt policies allowing pets and providing accommodations for pets to the maximum extent possible. If pets are allowed, there must be a clear policy regarding types of pets allowed, and the respective responsibilities for shelter staff and participants for managing pets to ensure safety of all participants.

11 G. Participant Rights & Responsibilities
All shelters shall adopt a policy on participant rights and responsibilities. These policies must be in writing and shared with each participant upon admission. The written policy should be both personcentered and trauma informed, and should affirm:
• The right to be treated with dignity and respect
• The right to privacy within the constraints of a shelter environment • The right to reasonable accommodations
• The right to self-determination in participation in case management and services, including the right to decline to participate in supportive services
• The right to have all records and disclosures maintained according to written standards and rules regarding confidentiality and privacy
• The right to be clearly informed, in understandable and applicable language, about the purposes of services being delivered
• The right to not be discriminated against based on categories including race, color, ancestry, national origin, religion, creed, age, disability, sex, gender, gender identity, gender expression, sexual orientation, medical condition, genetic information, marital status, military status, and veteran status.

H. Grievance and Appeal Procedures
Shelter providers must develop a written set of policies and procedures relating to participant appeals including:
• What types of decisions are subject to appeal (e.g., denial of admission, denial of extension of stay, program termination)
• Grounds for appeal
• How to file an appeal
• Process for the shelter will follow to consider the appeal, including timeframe for each step Shelter providers must also develop a written set of policies and procedures relating to the filing of participant grievances to address the participant’s treatment in the shelter program, including how to file a grievance, the process the shelter will follow to investigate, and how grievances will be resolved, and timeframe for each step.

In accordance with requirements of the State of California, shelter providers written policies and procedures should include directions on how to file a facility complaint to the Monterey or San Benito County Department of Housing and Community Development.

Copies of both the appeal and grievance policy should be posted in the shelter and staff should make forms available to participants upon request.

I. Participant Involvement and Feedback
Shelter providers should involve shelter participants in shelter program oversight and evaluation and proactively solicit input and feedback from participants on all aspects of shelter operations. This may take the form of a resident council (either volunteer or elected), regularly scheduled meetings between participant representatives and shelter staff, having a participant sit on the organization’s board of directors, or other means. Shelter providers should also use a range of tools to gather ongoing input

12 from participants, such as through a suggestion box, surveys, focus groups, exit interviews and other approaches. Shelters should analyze participant feedback and use it to assess program quality and performance and adjust as needed.

J. Reasonable Accommodations
Shelter providers must develop reasonable accommodation policies and ensure these policies are regularly and clearly communicated to participants.

A reasonable accommodation is a change, exception or adjustment to a program, service building or dwelling unit that will allow a qualified person with a disability to:
• Participate fully in the program
• Take advantage of a service
• Live in a dwelling
Shelter providers must provide notice to participants of their right to request reasonable accommodations and the process for making a request. A sample reasonable accommodation request form is provided in the Appendices. When a participant makes a reasonable accommodation request, the program must provide the accommodation unless doing so would result in a fundamental alteration in the nature of the program or would pose an undue financial or administrative burden. Providers must maintain documentation of all reasonable accommodation requests and how they were handled. If an accommodation is denied, a written explanation must be provided to the participant and documented in their program file.

K. Emergency Preparedness/Natural Disasters
Shelter providers will develop policies and procedures for emergency situations to safeguard staff and participant safety and security. Policies and procedures must include plans for the safe evacuation of shelter participants and staff in case of natural disasters and for sheltering-in-place if evacuation is not possible or safe. All staff must be fully trained on emergency procedures.

L. Data Collection, Quality Assurance, and Reporting
All emergency shelter programs must enter participant data into the Homeless Management Information System (HMIS) managed by the Coalition of Homeless Services Providers, with the exception of shelters operated by victim service agencies. Programs must follow CHSP’s HMIS policies and procedures which are detailed in a separate document. Program staff will enter complete and accurate information into HMIS in a timely manner for all participants. Participant information, including universal data elements and program-specific data elements, will be accurate, complete, and current.

Programs will conduct ongoing training, coaching, and internal review to ensure quality and consistency of services, and adherence to policies and procedures. Providers will conduct ongoing reviews of services and documentation of services (file reviews), and data quality.

Shelter programs will implement systematic processes to review outcomes, operations, procedures, and participant experience. Programs will maintain a continuous quality improvement process including reviewing outcome data, trend data, and data on the performance measures listed above. Programs also collect, review, and utilize ongoing feedback from participants and other stakeholders.

13 All Shelter programs shall complete and submit reports that are required by their funding sources in a timely manner.

M. Staff Training
Emergency shelter programs shall each develop a comprehensive training program and policy for all staff that covers, at a minimum:
• Harm Reduction
• Trauma-Informed Care
• Housing First Principles and Practices
• Motivational Interviewing
• Cultural Humility/Anti Racism
• Non-Violent Crisis Intervention/De-Escalation
• Emergency Procedures
• Domestic Violence and Safety Planning
• CPR
• Mandated Reporting
• Sexual Harassment
• Conflict Resolution

5. FACILITIES, HEALTH, AND SAFETY
This section specifies some high-level policies that programs are expected to comply with, but it is not intended to provide comprehensive policies for operating a shelter facility. Each shelter program shall develop detailed policies relating to facilities management, health and safety.

A. Facility Standards
Shelter providers are responsible for ensuring that physical facilities are maintained in compliance with all applicable local, state, and federal regulations, including building and fire codes. Shelter providers must ensure the program safe provides a safe living space for participants. The program provider will work to create and maintain an environment where the safety of participants, staff, and volunteers are always prioritized.

Safety Standards and Policies
Shelter Providers are responsible for maintaining and implementing policies and following protocols to ensure shelter program’s participant and staff health and safety. Policies should include, but are not limited to:
• Policies and procedures to adhere to all applicable local, state, and federal safety and health guidelines to address safe food handling, injury and burn prevention, sanitation and hygiene, participant health management, and staff health management.

14 • Training for staff on health and safety measures to effectively promote a desirable, safe environment for all shelter participants. This includes training on emergency situations, deescalation, and crisis prevention. • Training, policies, and protocol to prevent violence, theft, and other incidents that put the safety and well-being of shelter participants and/or staff at risk. Have policies and procedures in place to investigate any potential incident of violence, theft, or other incidents, including a thorough investigation and actions to address the findings.
• Complete appropriate background checks and screening for all staff and any volunteers who have frequent, direct interactions with participants or may have access to participant information.
• Maintain process to thoroughly investigate any alleged incident involving participants. If an incident occurred, identify, and address any staffing, staff training, facility improvement, policy/protocol/procedure, or other changes necessary to address the incident and prevent future incidents.
• Develop and implement policies and procedures to prevent, identify and address workplace violence and sexual harassment.
• Train staff and any volunteers who may interact with participants or participant information on participant confidentiality.
• Maintain a disaster response plan and maintain an emergency response resources, such as a fully stocked First Aid Kit and emergency supplies of food and water, are readily available and replaced as necessary. A telephone should be available always, should 911 need to be dialed. • No weapons or illegal substances are permitted on the premises. • Measures and policies to ensure the proper disposal of needles and syringes are in place. • Policies and procedures for natural disasters, fires, and other emergency situations are in place and made known to shelter participants and staff. For example, fire drills should be conducted routinely.
• Shelters have procedures for preventing and controlling bed bug infestations. Bedding should be regularly changed and washed.
• Staff members must be properly immunized and encouraged to receive flu vaccines each season.
• All shelter staff are mandatory reporters of suspected neglect or abuse. Staff members must be trained on and comply with mandatory reporting statutes.

15 Facility Configuration
Shelter programs may have different types of bed configurations, ranging from congregate/dormitory arrangements to private units. Whatever the configuration, the following general standards should be followed:
• Each participant should have his or her own bed.
• Cribs or Pack N Plays must be available for infants and very young children. • Participants should be afforded privacy in their living space to the maximum extent possible given the facility configuration.
• Shelter programs should offer participants some common areas for recreation and socializing to the extent possible given the facility configuration.
• To the extent possible, shelter programs should provide safe common areas for recreation and socializing for young children and school aged children. It is further recommended that there be space for school aged children to be able to work on homework and study. • Participants should have the ability to securely store possessions, and programs will work to maximize the secure storage space available for each participant. Programs may limit the number of possessions participants may bring to the shelter due to storage limitations and to prevent hoarding.
• Participants should have access to laundry facilities. • Whenever possible, shelters should provide gender-neutral or unisex restrooms to make facilities more welcoming for transgender and non-binary participants.

Meals/Food Preparation Facilities
Shelter programs should provide participants with meals or should provide cooking facilities so that participants may prepare their own food. Facilities that prepare meals on-site must comply with all applicable health and safety codes relating to food preparation and handling.

B. Communicable Diseases
Shelter providers are responsible for developing written policies and procedures for preventing the transmission of COVID-19 and other communicable diseases, in alignment with the recommendations of the CDC, State of California and county public health departments. Policies must cover social distancing, screening and testing, isolation and quarantine, and vaccination.

6. GLOSSARY
Continuum of Care (CoC) Program. The Federal grant program for targeted homeless activities, including Rapid Rehousing, and Permanent Supportive Housing. Administered federally by the U.S. Department of Housing and Urban Development and locally by a nonprofit or governmental lead agency and overseen by the Continuum of Care governing body or board. In Monterey and San Benito Counties, the Lead Me Home Leadership Council is the Continuum of Care governing body and the Coalition of Homeless Services Providers (CHSP) is the lead agency. A Continuum of Care also refers to the overall system of shelter, housing, and services available in a community to assist people experiencing homelessness.

16 Coordinated Entry System (CES). Coordinated Entry is a framework and process that organizes the homelessness response system through a common, population-specific assessment, centralized data system, and prioritization method that directs clients to appropriate resources and allows for data- driven decision-making and performance-based accountability. Coordinated Entry processes are divided into four parts: Access, Assessment, Prioritization, and Referral.

Diversion/Problem Solving. A strategy that prevents or diverts people from homelessness by helping identify immediate safe, indoor housing arrangements outside of the homelessness response system.

Problem solving strategies operate with the goal of providing people with the appropriate level of assistance needed to resolve their homelessness and ensuring that scarce resources, especially more intensive housing supports, can serve households with higher levels of identified need.

Emergency Shelter. A facility providing shelter in a permanent location, for a limited period of time, to individuals and families having neither a home nor the means to obtain a home or other temporary lodging. Shelters provide time-limited accommodations in either a congregate or non-congregate setting.

Emergency Solutions Grant (ESG). A federal funding source for programs serving people experiencing homelessness with a focus on assisting people to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. In Monterey and San Benito Counites, the City of Salinas is the Administrative Entity (AE) for ESG funding.

Family. One or more adults with physical and legal custody of one or more minor children; Housing First. A proven approach, applicable across all elements of systems for ending homelessness, in which people experiencing homelessness are connected to permanent housing swiftly and with few to no treatment preconditions, behavioral contingencies, or other barriers. (USICH, Housing First Checklist, 2016)
Permanent Supportive Housing (PSH) Subsidized rental housing without time limits and with intensive on-site support services to help tenants maintain housing and meet their desired goals. Permanent Supportive Housing is designed to house those individuals with the greatest housing barriers and the highest service needs.

Rapid Re-Housing (RRH). A housing program model that assists individuals and families who are homeless to move quickly into permanent housing, usually to housing in the private market. It does so by offering housing search assistance, time-limited and targeted services, and short-term rental assistance.

Transitional Housing (TH). An interim housing program model that provides persons or households with shared or private housing units for a time-limited period, during which time the person or household receives support services to help with the transition to permanent housing.

7. RESOURCES
• CoC Program Interim Rule
• ESG Program Interim Rule
• HUD Equal Access Rule

17 • HUD Definitions of Homelessness
• National Alliance to End Homelessness (NAEH) - Emergency Shelter Learning Series • Council on Accreditation (COA) - Person-Centered Logic Model

8. Encampment Resolution Funding Addendum
A. Background and Purpose
The California Interagency Council on Homelessness’ (Cal ICH) Encampment Resolution Funding (ERF) is focused on ensuring the wellness and safety of people experiencing homelessness in encampments by providing services and supports that address their immediate physical and mental wellness and result in meaningful paths to safe and stable housing. ERF is competitive funding available to cities, counties, and Continuums of Care. Monterey County was awarded an ERF 2R grant in June 2023.

Each community must focus their project on a prioritized encampment site. For Monterey County’s project, the prioritized encampment sites are located along the Pajaro River and Lower Salsipuedes Creek near the City of Watsonville (Santa Cruz County) and unincorporated town of Pajaro (Monterey County). This project is a multi-jurisdictional collaborative that includes both Santa Cruz and Monterey counties, the City of Watsonville, and the Pajaro Regional Flood Management Agency (PRFMA).

This addendum offers additional context about the requirements of the ERF project. This addendum should be used in tandem with the Monterey and San Benito County Shelter Standards when designing a shelter project.

B. Fiscal Deadlines
Monterey County was awarded an ERF 2R grant in June 2023. “2” refers to this being the second round of funding available through the ERF program. “R” refers to the rolling application process.

For ERF 2R grantees, the following fiscal deadlines apply:

Obligation Deadlines Expenditure Deadlines
100% 6/30/2024 50% 6/30/2024
100% 6/30/2026
“Obligation” means that the grantee (Monterey County) has placed orders, awarded contracts, received services, or entered into similar transactions that require payment using ERF funding (Standard Agreement, Exhibit A, Section 3). For more detail about obligating funds, please see the Cal ICH Grants Obligation Handout.
"Expended" means ERF funds have been fully paid and receipted, and no invoices remain outstanding.

All requirements listed above, including expenditure maximums and expenditure minimums, are required per statute. Cal ICH monitors progress toward these deadlines using data provided on the quarterly reports.

C. Reporting Deadlines
The ERF grantee (Monterey County) is required to submit a quarterly report to Cal ICH. Cal ICH will share templates and instructions for the quarterly report with the grantee. Sub-grantees and partners may be

18 required to submit data regarding expenditures, technical assistance needs, and project status to support this reporting process.

For ERF 2R grantees, the following reporting calendar applies:

Report Period Report Available Report due to Cal ICH
January 1 - March 31 April 1 April 30
April 1 - June 30 July 1 July 31
July 1 - September 30 October 1 October 31
October 1 - December 31 January 1 January 31
D. Eligible Uses
Monterey County’s ERF project received funding for the following eligible use categories: interim sheltering, rapid re-housing, street outreach, and administrative costs. The following personnel and nonpersonnel costs focus on the interim sheltering category, which includes: “interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or existing non-congregate shelters, and operations of existing navigation centers and shelters based on demonstrated need that are well suited for eligible persons.”
Personnel Costs
Entity Cost Category
[Shelter Provider]
Vice President Emergency Housing (0.05 FTE)
Director of Interim Housing (0.1 FTE)
Case Manager (1.5 FTE)
Resident Advocate (9.0 FTE)
Housing Specialist (0.5 FTE)
Program Manager (1.0 FTE)
Clinician (0.15 FTE)
Shift Supervisor (1.5 FTE)
Maintenance Tech Lead (1.0 FTE)
Janitorial Services (1.0 FTE)
Non-Personnel Costs
Entity Cost Category
Monterey County Contingencies
Westview Presbyterian Rent, paving
Housing for Health Partnership HMIS licenses
Dignity Moves Site development (units, design, consultants) Food Provider Meals
Shelter Provider
Facility equipment and supplies
Fire monitoring
Incentives
Internet services
IT equipment
Landscaping
Laundry equipment
Kitchen equipment
Pantry