Willits City Council
January 28, 2026

111 E. Commercial Street
Willits, California 95490
Tel | 707.459.4601
Fax | 707.459.1562
www.cityofwillits.org

WILLITS CITY COUNCIL
AGENDA
JANUARY 28, 2026 | 6:30 PM | CITY COUNCIL CHAMBERS

1. OPENING MATTERS
a. Call to Order. | b. Pledge to Flag. | c. Roll Call.

2. PUBLIC COMMUNICATIONS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on the agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

3. PUBLIC MATTERS

4. ENACTMENT OF ORDINANCES
a. None.

5. CONSENT CALENDAR
The City Council considers matters listed under the Consent Calendar as routine. The Council will take action with a single motion and roll call vote. A Councilmember may request the removal of an item(s) from the Consent Calendar for separate discussion and subsequent action.

The following items as presented are before the City Council for approval or denial:
a. City Council Minutes:
i. January 14, 2026.
b. Discussion and Possible Adoption of a Resolution of the City Council of the City of Willits for the Garman Culvert Extension Replacement Project Award of Bid to Wylatti Resource Management Inc. of Covelo for $25,004.01.
c. Discussion and Possible Action to Adopt the Proposed Rules, Regulations, and Minimum Standards for Willits Municipal Airport.
d. Review and Approve the City of Willits 2024 and 2025 General Plan and Housing Element Annual Progress Reports.

Willits City Council Agenda – January 28, 2026

6. MONTHLY ACTIVITY REPORTS
Matters that do not require action by the City Council but are of public interest. a. None.

7. COMMISSIONS, AGENCIES AND AUTHORITIES
The Willits City Council meets concurrently as the City of Willits Planning Commission & City of Willits Successor Agency.

8. CITY MANAGER REPORTS AND RECOMMENDATIONS
a. Verbal Reports – No Action.
i.

9. DEPARTMENT RECOMMENDATIONS (ACTION ITEMS)
a. Public Hearing to Discuss Future Applications for Funding Under the Community Development Block Grant (CDBG) Program and Consider Adoption of a Resolution Authorizing Submittal of an Application in Response to the 2025 CDBG Notice of Funding Availability.

10. DEPARTMENT MONTHLY REPORTS
a. Airport. b. Community Dev. c. Finance. d. Police Dept. e. Services & Facilities. f. Utilities.

11. CITY COUNCIL ANNOUNCEMENTS, COMMUNICATIONS AND REPORTS

12. GOOD & WELFARE

13. CLOSED SESSION NOTICE
a. None.

14. ADJOURNMENT
Right to Appeal - Persons who are dissatisfied with the decisions of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the Code of Civil Procedure, which generally limits to 90- days, the time within an individual and/or entity may judicially challenge the decisions of the City Boards and Agencies.

I hereby certify under penalty of perjury under the laws of the State of California that I posted the foregoing Agenda on the bulletin board at the main entrance of the City of Willits City Hall, located at 111 East Commercial Street, Willits, California, not less than 72 hours prior to the meeting set forth on this Agenda.

Dated this 22nd day of January 2026.

Delores Pedersen, City Clerk
Americans with Disabilities Act (ADA) Compliance
If you need assistance to attend or participate in a City Council meeting, please contact the City Clerk’s office at (707) 459-7113 or Fax (707) 459-1562. Notification at least 48-hours prior to the meeting will assist the City Clerk in assuring the implementation of reasonable accommodations to provide accessibility to the meeting. Our meeting room is wheelchair accessible and ADA parking is available.

Additional Meeting Information for Interested Parties
Materials related to an item on this Agenda submitted to the Willits City Council, Planning Commission, or Community Development Agency after distribution of the agenda packet are available for public inspection at City Clerk’s office at 111 E. Commercial Street, Willits, during normal business hours, Monday through Thursday 9 AM to 5:30 PM. 111 E. COMMERCIAL STREET
WILLITS, CALIFORNIA 95490
(707) 459-4601 TEL
(707) 459-1562 FAX

WILLITS CITY COUNCIL

MINUTES
WEDNESDAY JANUARY 14, 2026
Mayor Allman called a regular meeting of the City Council to order at 6:31 p.m., in Council Chambers. The meeting was preceded by the pledge to the flag.

Roll Call: Councilmembers Gerardo Gonzalez, Larry Stranske, Bruce Burton, Vice Mayor Matthew Allaniz and Mayor Tom Allman were present.

Also, present were staff members: Bob Richardson, Interim City Manager; Jim Lance, City Attorney; Dusty Duley, Community Development Director; Manuel Orozco, Finance Director; Walter Kolon, Services and Facilities Director; Brian Fay, Police Chief; and Delores Pedersen, City Clerk.

2. Public Communications
 Allison Talbot, PG&E Local Government Relations Representative, came to introduce herself to the City Council. Ms. Talbot will email her contact information to Bob Richardson, Interim City Manager, to pass on to the City Council. If the Council has any local or regional PG&E issues she is happy to assist.

3. Public Matters
a. City Council 2024 Assembly and Reorganization.
i. Nomination and Appointment of Mayor.

Public Comment: None.
 Council Member Alaniz responded that it is always a good idea to rotate the positions of Mayor and Vice Mayor. Due to Council Member Allman taking over the position midyear when Council Member Stranske stepped down as Mayor and being that the City is in a period of transition it would be a good idea to stick with the leadership that the City currently has.

Moved by Burton/Seconded by Stranske and carried unanimously to nominate Councilmember Allman as Mayor.
ii. Nomination and Appointment of Vice Mayor.

Moved by Burton/Seconded by Stranske and carried unanimously to nominate Councilmember Alaniz as Vice Mayor.

MAYOR ALLMAN PRESIDING AT 6:38 P.M.
 Mayor Allman stated that this is not
Willits City Council Minutes of January 14, 2026 Page 2 of 7 iii. Committee Appointments. – Tabled until January 10, 2024, City Council Meeting.

Moved by Strong /Seconded by Rodriguez and carried unanimously to approve the Mayor’s Appointments to the following Boards, Commissions, and Committee’s:

STANDING COMMITTEES OF THE CITY COUNCIL
Finance Committee
3rd Wednesday 3:30 pm
Tom Allman
Matthew Alaniz
Water & Wastewater Systems Committee
3rd Thursday 10:00 am
Bruce Burton
Larry Stranske
Transportation
4th Thursday 3:30 pm
Gerry Gonzalez
Larry Stranske
Bi- Monthly Chamber of Commerce Meeting
City Manager
Gerry Gonzalez

REGIONAL BOARDS
League of California Cities / Redwood Empire Division
Gerry Gonzalez
Alternate: Tom Allman

Mendocino Council of Governments (MCOG)
1st Monday 1:30 pm
Matthew Alaniz
Alternate: Larry Stranske
Economic Development & Financing Corporation (EDFC)
2nd Thursday 2-4 pm
Tom Allman
Mendocino Solid Waste Management Authority (MSWMA)
3rd Thursday 9:00 am
Larry Stranske
Alternate: Bruce Burton
Mendocino Transit Authority (MTA)
Last Wednesday 1:30 pm
Matthew Alaniz

MENDOCINO COUNTY CITY SELECTION COMMITTEE NOMINATIONS
Local Agency Formation Commission (LAFCo)
1st Monday 9:00 am
Gerry Gonzalez
Mendocino County Museum Advisory Board
Bi-Monthly 2nd Wednesday 9:30 am (1st meeting February) Tom Allman

AD HOC COMMITTEES
Willits Frontier Days Advisory Committee
Tom Allman
Larry Stranske
Measure K
Meets Quarterly
Tom Allman
Matthew Alaniz

CITIZEN COMMITTEES
Willits City Council Minutes of January 14, 2026 Page 3 of 7 Art in Public Spaces
Meets as needed
Gary Martin Margi Guhde
Dan Miller Judy Fisch

4. Enactment of Ordinances
None presented.

5. Consent Calendar
The following item(s) are recommended for approval or denial, as follows:
a. City Council Minutes:
i. December 10, 2025
ii. December 10, 2025 – Special Meeting.
iii. December 22, 2025 – Special Meeting.

Public Comment: None presented.

Moved by Gonzalez/Seconded by Alaniz and carried unanimously to approve Consent Calendar item(s) (a).
b. Approve the First Amendment to the Professional Services Agreement with Muchmore than Consulting for $60,900 in Additional Authority through MidMarch 2026.  Interim City Manager Richardson explained that Ms. Muchmore has been providing Personnel Management and Systems Management services since he started and he wants to make sure the City can keep using her services through the reorganization process. Mayor Allman stated that he is in support of utilizing Muchmore Than Consulting services to Mid- March but would not support going beyond that. Mr. Richardson stated that Mid-March is more than enough time, based on his timeline the City is right on the timeframe Public Comment:
 Nicole Caldwell stated that she does not disagree that the City needs someone to assist the Interim City Manager with the task that he is here to do, but she disagrees with paying $60,900 to pay a consultant when the City is looking at cutting positions and employees. Mayor Allman responded that having a person with the professional knowledge to take care of employee rights and the City is protected from any legal claims allows the City to take care of it without having to spend more money afterwards for a mistake that might have been made.
 Vice Mayor Alaniz asked to have dates added next to the signatures page for the date a contract or amendment is signed. Mr. Alaniz asked to have the not to exceed amount in the amendment to match the resolution, he also pointed out that the resolution had the incorrect date of September 24, 2005 when it should be October 14, 2025 as the date that the City entered into an Agreement with Muchmore than Consulting LLC. Mr. Alaniz requested that this be corrected.  Council member Gonzalez stated that he understands what Ms. Caldwell is saying but in the same time the Council wants to be sensitive, these are peoples lives that is being affected. If they are due something the Council needs to know what that is so that their rights are observed and if not the Council needs to be upfront with everyone as soon as they can. Mr. Gonzalez continues that it is a hard pill to swallow, again the City is paying more consultants but at the same time getting someone who is also not emotionally attached and comes with the professional experience to do it right is important to him.

Willits City Council Minutes of January 14, 2026 Page 4 of 7  Council member Burton inquired about the certifications that the contract states the Ms. Muchmore has, he inquired about what specialized certifications are required, he assumes that a CPA if she is dealing with finances. Mr. Richardson responded that Ms. Muchmore is primarily working in personnel and systems, not finance, although she is assisting in those areas. Ms. Muchmore responded that she is a Senior Certified Professional in Human Resources by the Society of Human Resource Management, she is not a CPA and is not contracted as a Finance Expert for the City of Willits. Mr. Burton mentioned that the contract refers to Finance Consulting, Ms. Muchmore responded that they do Payroll Consulting and that it is under Finance. Mr. Burton requested that the working papers, that fall under the contract become the property of the City. Mr. Richardson states that he sees not issue with this request.
 Bear Kamoroff asked for clarification of how much the total contract is costing the City? Mayor Allman responded that it is $90,600. Vice Mayor Alaniz corrected that the total is $85,900.
 Council member Burton added that the City has an Interim City Manager to do a specific task, and he feels that he needs a non-participating confidant to work his plan through, expecting him to do it solo is an unreasonable expectation, having someone to offer expertise and council and help him make better decisions is where Mr. Burton feels the value it.

Moved by Alaniz/Seconded by Gonzalez and carried unanimously to approve Consent Calendar item(s) (b).

6. Monthly Activity Reports
Matters that do not require action by the City Council but are of public interest. a. Accounts Payable Activity Report: December 2025.
b. Building Permit Activity Report: December 2025.
c. Business License Activity Report: December 2025.
 Council Member Burton asked for clarification of checks that were paid.

7. Commissions, Agencies and Authorities
None presented.
 Mayor Allman inquired about the need for the City Council to continue to meet as the successor agency. Finance Director Orozco states that he is looking into writing to the Oversight Committee requesting dissolution of the Successor Agency.

8. City Manager Reports and Recommendations
a. Verbal Reports – No Action.
 Bob Richardson, Interim City Manager, reports that the first meeting in February the council will be provided the Mid-Year Budget to provide the Council with a good understanding of where the City stand financially. Mr. Richardson will also provide to the Council his findings and recommendations as to the fiscal condition of the City and a reorganization plan for Councils consideration. Senior staff members have been asked to develop their general fund non personnel budget requests for the coming year. This will give Mr. Richardson the ability to understand what the needs are for operations out of the general fund this next fiscal year. This will start the next years budget process earlier and allow to take a better look and extrapolate the more capitol needs out of the general fund and that will provide the resources available for the re-organization, at that time Mr. Richardson will be able to provide his final calculations and bring them to Council. Once Council has approved that action the Willits City Council Minutes of January 14, 2026 Page 5 of 7 City will have twenty-one (21) days to fully implement and start moving forward with the re-organization.
 Mayor Allman inquired if Mr. Richardson has any plans to have another full meeting with staff to update them. Mr. Richardson responded that just before the February meeting he would be happy to get this done, to give staff a good understanding as to where the City stands financially
Public Comment: None presented.

9. Department Recommendations (Action Items)
a. Discussion and Possible Adoption of a Resolution of the City Council of the City of Willits for the Franklin Ave. Storm Drain Replacement Project Award of Bid to Wylatti Resource Management Inc. of Covelo for $96,497.12.  Council member recused himself declaring a conflict of interest, he owns property on Franklin Ave.

Public Comment:
 Nicole Caldwell inquired if the project could wait another year. Ms. Caldwell continues that the $96,497.12 is two or three employees for one year.

Moved by Gonzalez/Seconded by Alaniz and carried 4/1 with Council Member Burton recused to adopt Resolution No. 2026-02 awarding a contract to Wylatti Resource Management Inc. of Covelo, in an amount not to exceed $96,497.12, for the Franklin Ave. Storm Drain Replacement Project.

B. Review and Approve the City of Willits 2024 General Plan and Housing Element Annual Progress Reports
 Dusty Duley, Community Development Director gave the Council a verbal report of the Housing Element Annual Progress Reports for 2024 & 2025.  Council requested to have the item placed on the Consent Calendar for January 28, 2026.
 Council member Burton complained that the state requires the city to produce these reports then implements mandates that demeans the process. Mr.

Burton continues that the City population has reduced by ten (10) based on the count that is printed on the population sign, if building more houses grows a community the city should have grown by three to four hundred people due to the new housing that has that has been built since 2010.  Council member Burton inquired why the City did not include the freeway interchanges in the sphere of influence. Mr. Duley responded that it is difficult to get the Local Agency Formation Commission (LAFCo) approval to put the interchanges in the sphere of influence given their zoning.  Mayor Allman states that Mr. Burton brought up a good point, there are now 100 people at the California Conservation Corps (CCC) now, so population is going up. Mr. Allman also states he does not believe we have statistical data on how many vacant houses the City has. Mr. Duley stated that the last time the City was going through the Housing Element process the vacancy rate was negligible.
 Mr. Duley that the City’s Housing Element in required to be updated in the middle of 2027, most jurisdictions are getting started on this now. The state Willits City Council Minutes of January 14, 2026 Page 6 of 7 also passed a law that the next time we update the Housing Element we are also subject to updating the City’s Safety Element.

Public Comment:
 Bear Kamoroff inquired about the type of housing that the community is seeking and who was it that made that decision? Mr. Duley responded that he has heard from individuals that are up in age and are currently living in the surrounding hills and are looking to move into town but there is not enough senior housing. Workforce housing for teachers would be appreciated. Mr. Duley has heard from some of the City’s biggest employers that there would be an opportunity to expand their workforce however there is not available housing to support their needs.

Review And Approve The City Of Willits 2025 General Plan And Housing Element Annual Progress Reports
 Council requested to have the item placed on the Consent Calendar for January 28, 2026.

C. Proposed Change Order For The New Sports Park Solar Array For An Amount Of $231,040; To Syserco Energy Solutions (Ses) For The Installation Of Revised Caisson Infrastructure.
 Walter Kolon, Services and Facilities Director reported that since the production of the Agenda for this meeting staff has identified more cost savings for this project. The new actual coast will be $203,492.85, Mr. Kolon added that there will be more modifications that will have a cost savings of $7,500 more.

Public Comment:
 Nicole Caldwell commented that the added cost would be four to five employees keeping their jobs for another year.
 Helen Sims asked if there is some reason as to why this project cannot be delayed considering the City finances at this time. Mr. Kolon stated that we have to have the project completed by the end of April or May due to funding sources and the PG&E Agreement.
 Nicole Caldwell expressed her frustration over the project, stating that everyone was against the project. When concern was raised to a certain individual and was asked why he was going forward his response was because I can.

Moved by Gonzalez/Seconded by Alaniz and carried 4/1 with Council Member Stranske dissenting to adopt Resolution No. 2026-03 to approve a Change Order not to exceed a Total of $203,492.85, to Syserco Energy Solutions (SES) for Revised Foundation, Caissons and Structural Upgrades.

10. City Council Announcements, Communications and Reports Councilmember Burton
 Asked for a report of the City’s Financial Accounts.

Finance Director Orozco reported the following:

Savings Bank of Mendocino County:

Main Account : $3,503,489.55
Payroll Account: 376,782.23
Savings Account: 35,133.80
Willits City Council Minutes of January 14, 2026 Page 7 of 7 LAIF Balance: $ 557.908.00
US Bank Balance: $5,333,331.23
Processor Accounts:

Xpress Bill Pay: $ 244,962.14
Pathpoint: 238,482.52
Total Citywide Accounts $10,290,089.47
 Mayor Allman explained that the mass majority of these funds are in the Enterprise fund for Water and Sewer and can not be used for general government purposes.

Councilmember Stranske
 Expressed concern over people driving scooters and bikes on the sidewalk in town.

Vice Mayor Alaniz
 Finance Committee – Postponed this month’s finance committee meeting until the mid-financial review.

Public Comment: None presented.

No action taken.

11. Good & Welfare
None.

12. Closed Session Notice
None presented.

13. Adjournment
Mayor Allman declared the meeting adjourned at 9:13 p.m.

For more information on the January 14, 2026 Willits City Council Meeting please view the recording on YouTube.
_____________________________
Tom Allman, Mayor
City Council for the City of Willits
ATTEST:
__________________________

DELORES PEDERSEN
City Clerk
Item No. 5b
Meeting Date: January 28, 2026

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Walter Kolon, Services and Facilities Director
Agenda Title: DISCUSSION AND POSSIBLE ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF WILLITS FOR THE GARMAN CULVERT EXTENSION REPLACEMENT PROJECT AWARD OF BID TO WYLATTI RESOURCE MANAGEMENT INC. OF COVELO FOR $25,004.01.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 15 minutes.

Summary of Request: At 389 N. Main is a City owned culvert and catchment system within an easement alongside the Garman residence. This 32-inch drainage system collects storm water from the West side of N. Main, crosses over N. Main and runs alongside the Garman property and heads east. When Caltrans was making improvements to Highway 101 pre 2015 they, along with their contractor, installed a new drainage culvert adjacent the Garman residence. The pipe was installed improperly at an angle directing the water not alongside the property line but towards it impacting the corner of an existing shop building. This was never corrected and over the years a concrete apron was installed to try and deflect the water flow, but water has eroded the area with possible impacts to the structure. When the Bypass Project was completed in 2019 Caltrans relinquished the roadway and all underground infrastructure including this culvert to the City of Willits who assumed responsibility of the drainage. This will correct a longstanding issue that has worsened over the years.

Scope of work includes horizontal realignment of approximately 32-feet of existing 32” ID RCP storm drainpipe, the laydown, connection, and backfilling of approximately 24- feet of new 32” ID RCP storm drainpipe. The project includes minor earthwork grading to shape a drainage swale and constructing a riprap apron. Private property is in close proximity to the improvement area. The City went out to bid and had 4 contractors attend the onsite project inspection with two bids received.

Two bids were received with Wylatti Resource Management Inc. of Covelo in the amount of $25,004.01, the apparent low bidder. City Staff recommends that Wylatti Resource Management Inc. be awarded the Garman Culvert Extension Project contract for their apparent low bid of $25,004.01.which came in under the Engineers Estimate of Probable costs. See Attachment A,B, C- Spec. book, bid and plans.

Recommended Action: Approve a contract with Wylatti Resource Management Inc. of Covelo in the amount of $25,004.01.and authorize the City Manager or their designee to approve 10 percent added contingency for any unforeseen changes.

Alternative(s): None. Improperly installed infrastructure. Repairs needed to correct hazardous water flow condition.

Fiscal Impact: Funds will be reimbursed through MCOG Transportation Funds. Savings through reduced annual staff time spent every winter unclogging and jetting storm drains to reduce flooding and road closures. Caltrans issuance of permits at no cost to the City.

Personnel Impact: None.

Identified City Council Conflict of Interest: Possible conflict due to proximity of personal property to the project area.
2021 Adopted Goals: Goal #1 for Services & Facilities. Maintain and improve infrastructure systems of water, wastewater, public facilities and streets capable of managing future growth while responding to current City needs.

California Environmental Quality Act: The proposed improvements do not require CEQA review prior to construction.

This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: Interim City Manager City Attorney City Clerk Finance Director Human Resources Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ City of Willits
Engineering Department
380 East Commercial St.

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Garman Project Description
Contractor to do all the work pertaining to the horizontal realignment of approximately 32-feet of existing 32” ID RCP storm drain pipe, the laydown, connection, and backfilling of approximately 24- feet of new 32” ID RCP storm drain pipe. The project includes minor earthwork grading to shape a drainage swale and constructing a riprap apron. Private property is in close proximity to the improvement area and extra care should be taken to protect it inplace.

All work to be done according to City of Willits Standard Specifications.

Required submittals: RCP pipe material, backfill material, water pollution control plan Resolution No. 2026-__ Page 1 of 1 January 28, 2026
RESOLUTION NO. 2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS APPROVING THE

GARMAN CULVERT EXTENSION REPLACEMENT PROJECT AWARD OF BID TO WYLATTI RESOURCE MANAGEMENT INC. OF COVELO FOR $25,004.01
WHEREAS, At 389 N. Main is a City owned culvert and catchment system within an easement alongside the Garman residence. This 32 inch drainage system collects storm water from the West side of N. Main, crosses over N. Main and runs alongside the Garman property and heads east; and WHEREAS, When Caltrans was making improvements to Highway 101 pre 2015 they along with their contractor, installed a new drainage culvert adjacent the Garman residence. The pipe was installed improperly at an angle directing the water not alongside the property line but towards it impacting the corner of an existing shop building; and
WHEREAS, City staff, the City Contract Engineer after being contacted by the owner worked to find a solution, formulated plans and bidding specifications, and put out to bid as a project; and WHEREAS, Scope of work includes horizontal realignment of approximately 32-feet of existing 32” ID RCP storm drain pipe, the laydown, connection, and backfilling of approximately 24- feet of new 32” ID RCP storm drain pipe. The project includes minor earthwork grading to shape a drainage swale and constructing a riprap apron; and
WHEREAS, Four contractors participated on an onsite pre-inspection of the project and the City received two bids with Wylatti Resource Management of Covelo the apparent low bidder with the amount of $25,004.01 coming in under the Engineers Estimate of Probable costs; and WHEREAS, The funds for the project will be reimbursed thru MCOG transportation and road funds; and
WHEREAS, Repairs and improvements will correct a long standing drainage issue that is impacting private property including a shop structure; and
NOW, THEREFORE, BE IT RESOLVED that the Willits City Council authorize and approve a contract with Wylatti Resource Management for the Garman Culvert Extension Replacement Project in the amount of $25,004.01 and authorize the City Manager or their designee to approve 10 percent added contingency for any unforeseen changes.

PASSED, APPROVED AND ADOPTED, this 14th day of January, 2026.

THE CITY OF WILLITS
______________________________
Tom Allman, Mayor
Resolution No. 2026-__ Page 1 of 1 January 28, 2026
ATTEST:

I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 14th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:
______________________________
Delores Pedersen, City Clerk
Item No. 5c
Meeting Date: January 28, 2026

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Kenan O’Shea, Airport Operations for Willits Municipal Airport Agenda Title: DISCUSSION AND POSSIBLE ACTION TO ADOPT THE PROPOSED RULES, REGULATIONS, AND MINIMUM STANDARDS FOR WILLITS MUNICIPAL AIRPORT.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 10 minutes.

Summary of Request: : On June 30th, 2025, The FAA ordered the City of Willits to take Corrective Action to restrict unauthorized access to the Willits Municipal Airport. It was identified that the city did not have a set of regulations and standards that clearly defined operational procedures and rules in place to support enforcement. The FAA directed the City to establish and adopt a document to address this deficiency. This draft was composed to comply with that requirement, which is the last component of the approved Corrective Action Plan submitted to the FAA to demonstrate efforts made in good faith by the City of Willits to meet the alleged violations of Federal Grant Assurances identified in the letter of determination regarding the PART 16 Complaint levied against the City of Willits.

Recommended Action: Adopt these Rules, Regulations, and Minimum Standards, which has been drafted based on regulations in place at other Airports of similar size, and fundamental industry standards. It has been reviewed by the FAA and deemed adequate, vetted with legal counsel specializing in Airports and FAA negotiations, and presented to an informal AD HOC Committee of local Airport stakeholders for input and approval.

Alternative(s): Reject the proposed regulations and standards and potentially forfeit grant funding pending further determination by the controlling agency.

Fiscal Impact: NONE
Personnel Impact: Increased staff time spent monitoring, documenting and enforcing as needed.

Identified City Council Conflict of Interest: NONE
2021 Adopted Goals: : This item meets Goal #1 for Services & Facilities…Maintain and improve infrastructure systems of water, wastewater, public facilities, and streets capable of managing future growth while responding to current City needs.

California Environmental Quality Act: The proposed adoption of these Rules, Regulations, and Minimum Standards are exempt from the CEQA study and review process as they are not a project or development and pose no potential environmental impact.

This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: Interim City Manager City Attorney City Clerk Finance Director Human Resources Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Rules, Regulations, and Minimum
Standards
for
The City of Willits Municipal Airport
Ells Field – O28
1320 Poppy Drive
Willits CA 95490
Effective Date: __________________________
111 E. Commercial Street
Willits, California
95490
Tel | 707.459.4601
Fax | 707.459.1562
www.cityofwillits.org
Gateway to the Redwoods
2 Table of Contents
Page

1. Purpose and Authority .......................................................................................... 3

2. Definitions ..............................................................................................................3-6

3. General Provisions ..............................................................................................6-7

4. Aircraft Operations .................................................................................................7

5. Ground Operations ..............................................................................................7-8

6. Vehicle Operations ..................................................................................................8

7. Tenants and Commercial Activities ...............................................................8-9

8. Security and Access .................................................................................................9

9. Environmental and Standards ............................................................................9

10. Enforcement and Penalties .........................................................................9-10

11. Severability ..........................................................................................................10 3 I. Purpose and Authority
These Rules, Regulations, and Minimum Standards are adopted by the City of Willits to:
‒ Ensure safe, orderly, and efficient use of the Airport. ‒ Establish minimum standards for all users, tenants, and operators. ‒ Protect the public investment in Airport facilities.
‒ Promote general aviation consistent with FAA regulations and best practices.

These Airport rules and regulations are designed to establish the necessary regulations and the airport’s duly adopted minimum standards for the management, government and use of the Airport and to ensure the continued viability and safety of the Airport for its users and for the citizens of the community. These regulations are intended to be reasonable, attainable, uniformly applied, non-arbitrary and non-discriminatory. These apply equally to everyone using the Airport and shall be observed, abided by and obeyed.

II. Definitions
The following words and terms shall have the meaning indicated below, unless the context clearly requires otherwise:

A. Aircraft – Aircraft shall have that meaning specified in Title 49 United States Code and in Federal Aviation Regulation Section 1.1 and includes a device that is used or intended to be used for flight in the air, including but not limited to, airplanes, rotorcraft and helicopters, gliders, ultralights and lighter than air vehicles.

B. Airport – Means the City of Willits Municipal Airport as shown on the FAA approved Airport Layout Plan.

C. City of Willits or City – Means the City of Willits, the fee simple owner of the property that comprises the City of Willits Municipal Airport. City includes the designated staff or representatives thereof.

D. Exclusive Right – The power, privilege or other right excluding or debarring another firm from enjoying or exercising a like power, privilege or right. An exclusive right can be conferred either by express agreement, or by the imposition of unreasonable standards or requirements, or by any other means. Such a right conferred on one or more parties, but excluding others from enjoying or exercising a similar right or rights, would be an exclusive right.

E. FAA – The Federal Aviation Administration.
4 F. Federal Grant Assurances – A provision within a Federal Grant Agreement to which the City, as recipient of Federal airport assistance, has agreed to comply in consideration of the assistance provided. Grant assurances are required by Federal Statute (49 U.S.C. Sec. 47101.)
G. Federal Grant Obligations – Any and all obligations of the City arising out of or in connection with a Federal grant program, airport development assistance or Federal Aid, including but not limited to obligations arising under the Surplus Property Act of 1944 (49 U.S.C. Secs. 47151-47153), the Federal Air to Airports Program, the Airport Development Aid Program and the Airport Improvement Program.

H. Manager – Means the Willits Municipal Airport Manager who is appointed by the City of Willits.

I. Movement Area – The runways, taxiways and other areas of an airport that are used for taxiing, takeoff and landing of aircraft, exclusive of loading ramps and aircraft parking areas.

J. Operator – Means use, cause to use or authorize to use aircraft, for the purpose of air navigation including the piloting of aircraft, with or without the right of legal control (as owner, lessee, or otherwise.)
K. Regulations– The rules and regulations as may be promulgated and adopted from time to time by the City or Council to protect the public health, safety, interest and welfare of the Willits Municipal Airport.

L. Willits Municipal Airport – Referred to as the “Airport”, means the property allocated for the operation of the City owned Municipal Airport in the City of Willits, State of California, as depicted on the current Airport Layout Plan.

M. Willits City Council – Referred to as “City Council” is the elected, legislative governing body of the City of Willits that makes laws (ordinances), appropriates funds, sets forth policies, levies taxes, and oversees the municipality’s administration to serve it’s constituents.

III. General Provisions
A. Introduction – All aeronautical activities at the Airport, all operation and flying of aircraft at the Airport, and all business and other activities at the Airport, shall be conducted in accordance with these regulations and the airport’s duly adopted minimum standards, and all pertinent rules, regulations, orders and rulings of the FAA and the California Department of Transportation Division of Aeronautics, as appropriate, which are made a part of these regulations and the airport’s duly adopted minimum standards by this reference. In the event of any conflict between these regulations and the airport’s duly 5 adopted minimum standards and any law, rule, regulation or order of any governmental agency cited in this section exercising the same or similar jurisdiction, the latter shall prevail.

B. Airport Manager – The Airport Manager is authorized to take all reasonable actions necessary to protect and safeguard the public while present at the Airport and to oversee all Airport operations consistent with these regulations and the airport’s duly adopted minimum standards, Federal Grant Assurances and the laws of the State of California. The Airport Manager shall administer these rules, regulations, and the airport’s duly adopted minimum standards in a reasonable, impartial and uniform manner so as not to allow discriminatory application thereof.

Complaints pertaining to any activity or service at the Airport, if not accommodated satisfactorily by the Airport Manager, may be registered by contacting the City Manager for the City of Willits.

C. Public Use – The Airport shall be open for public use at all hours, subject to regulations or restrictions due to weather, the conditions of the Airport operational area, and special events and like causes, as may be determined by the City. The Airport is provided by the City for the use, benefit, and enjoyment of all. Reasonable and nondiscriminatory user fees and charges may be established to support the maintenance and improvements of the Airport.

D. Common Use Areas – Common use areas include all runways for landing and take-off, taxiways, airport lighting, all apparatus or equipment for disseminating weather and wind information, for radio or other electrical communication, and any other structure, equipment or mechanism having a similar purpose for guiding or controlling flight in the air or the landing and take-off of aircraft. All parallel and connector taxiways shall be common use areas. All taxi-lanes shall be kept clear and available for aircraft traffic. All airplane aprons shall be considered common use areas available for use. All aircraft must be parked in marked/approved parking locations. No vehicles, trailers or equipment will be parked in any common use areas. Except in emergency situations, no FBO or other Operator or person shall use any common use area for nonstandard purposes without the prior consent or authorization of the City and/or Airport Manager. Common use designations may be changed from time to time by the Airport Manager.

E. Applicability – These rules apply to all persons, aircraft, vehicles, tenants, and businesses on Airport property.

F. Compliance with Law – All activities shall comply with FAA regulations, Transportation Security Administration (TSA) requirements, federal/state/local law, and City ordinances.
6 G. Liability – The Airport and City assume no responsibility for injury, damage, or loss at the Airport except as required by law.

H. Authority of Airport Manager – The Airport Manager (or designee) has full authority to enforce these rules and issue directives in the interest of safety and efficient operation.

IV. Aircraft Operations
A. Runway Use – All takeoffs, landings, and taxi operations must follow FAA regulations and published procedures.

B. Every person operating an aircraft shall comply with and operate such aircraft in accordance with these regulations and the airport’s duly adopted minimum standards, and all pertinent rules, regulations, orders and rulings of the FAA, and DOT and other appropriate governmental agencies. Every person operating an aircraft is responsible for its safe operation and for the safety of others exposed to such operation, and therefore shall exercise good operating procedures at all times. Aircraft shall not be operated carelessly or negligently nor in disregard of the rights and safety of others.

C. Unless a Notice to Air Mission (NOTAM) has been issued and except for special circumstances or emergency situations, all aircraft shall follow the appropriate taxiway and runway guidance marking and lighting when operating on the Airport.

Taxiways are to be used exclusively for the movement of aircraft to and from runways.

D. Derelict or Disabled Aircraft – Aircraft that are abandoned, disabled, or present a hazard must be removed at the owner’s expense. If the owner does not remove such an aircraft promptly upon request the City will remove the aircraft at the owner’s expense.

V. Ground Operations
A. Aircraft Parking – Operators must park aircraft in designated areas and pay the applicable fee.

B. No person shall operate any vehicle or travel on the Airport property by any manner except on roads, paths, walks, and areas provided for that particular means of travel. No obstructions shall be permitted on any road, path, or walk without permission from the Airport Manager or their designee. No person shall enter upon the paved runway of the Willits Municipal Airport, except when engaged in lawful business in the operation of aircraft or in assistance to operators of aircraft.
7 C. Any person operating or using any equipment on the Airport shall use extreme caution and care.

D. Operators shall properly secure their aircraft while parked or stored. Pilots are solely responsible for parking and tying down their aircraft, including any special security measures required by weather conditions or other conditions at the Airport.

Operators also shall be responsible within reason for securing aircraft in a manner necessary to avoid damage to other aircraft or buildings at the Airport in the event of winds or other severe weather. The City's obligation, unless otherwise provided for by any Operator lease agreement, shall be the maintenance of the aircraft parking space, exclusive of tie-down rope and grass surfaces.

VI. Fueling and Fire Regulations
The following shall apply, except where either insurance requirements or applicable codes differ, in which case the latter shall prevail. All persons using the Airport and its facilities shall exercise the utmost care and caution against fire and injury to persons and/or property.

A. Self-fueling is permitted only in compliance with applicable fire codes and these Rules and Regulations.

B. Open flames, welding, or hazardous material storage are prohibited unless prior written approval from the Airport Manager is obtained.

C. No person shall fuel or drain fuel from any aircraft while the engine is running or while such aircraft is in a hangar or enclosed space. All fueling procedures shall be in strict compliance with NFPA 407 requirements.

D. No person shall use flammable or volatile liquids in cleaning aircraft engines, propellers, and other aircraft components unless such cleaning occurs in open air or in a facility designed for such use with proper ventilation and equipped with adequate and readily accessible fire extinguishers.

E. Each hangar shall have at a minimum one (1) 2A10BC approved fire extinguishers mounted on brackets on opposite walls next to hangar access door. All tenants or lessees are responsible for providing and maintaining fire extinguishers.

F. No person shall store any material or piece of equipment in such a manner that it becomes a hazard. Gasoline, jet fuel, lubricating oil, or any other flammable substance shall be stored in accordance with applicable codes and regulations. No person 8 shall store any lubricating oils on the Airport except in specified and labeled containers or receptacles.

G. All persons on the Airport shall keep all areas of the premises leased or used by them, clean and free of waste oil, grease, and other flammable materials. Hangar floors shall be kept clean, free from waste materials or other trash and rubbish.

H. No person shall smoke or ignite any matches, flares, lighters, or other objects which produce an open flame anywhere within a hangar, shop building, or structure in which any aircraft is or may be stored, or in which any fuel, oil or flammable substance is stored, or within fifty (50) feet of any aircraft or any fueling facilities.

I. The use of pyrotechnics of any kind is prohibited on airport property unless approved by the airport manager.

J. Hazardous Materials – Storage, disposal, and use of hazardous substances, if permitted by the Airport Manager, must comply with EPA, state, and local rules.

VII. Vehicle Operations
A. Access – Vehicles are allowed only on designated roadways and aprons.

Vehicles are prohibited from Movement Areas unless supporting flight operations or expressly authorized by the Airport Manager.

B. Speed Limits – Maximum speed is 15 mph on aprons and 25 mph on Airport roadways.

C. Parking – Vehicles must park in designated areas. Overnight storage of vehicles in hangars requires prior approval
VIII. Tenants and Commercial Activities
A. All Commercial Activity at the Airport requires an operating agreement approved by the Willits City Council setting forth the appropriate terms and conditions for such commercial activities, including reasonable insurance requirements.

B. Hangars shall be utilized solely for the storage of aircraft and for other aeronautical purposes, except as otherwise permitted pursuant to the Federal Aviation Administration’s Policy on the Non-Aeronautical Use of Airport Hangars, as may be amended from time to time. The incidental storage of non-aeronautical items shall be permissible only when the hangar is primarily used for aeronautical purposes, and provided that such storage does not impede, restrict, or otherwise interfere with the aeronautical use or accessibility of the hangar.
9 In the event a hangar is vacant or unoccupied, the Airport Manager, in their sole and absolute discretion, may authorize the temporary rental of said hangar for nonaeronautical storage or related activities as permitted by the FAA. Any such temporary occupancy shall be subject to termination within thirty (30) calendar days of receipt of written notice from the Airport Manager that a prospective tenant seeking to utilize the hangar for bona fide aeronautical purposes has submitted the required deposit and that there are no other available hangar facilities.

C. Maintenance – Aircraft maintenance must occur only in designated areas or hangars designed for such use unless approved by the City or in the event of an emergency.

D. Rates and Fees – All users shall pay fees as set by City Council.

IX. Security and Access
A. No person shall operate any vehicle or travel on the airport property by any manner except on roads, paths, walks, and areas provided for that particular means of travel. No obstructions shall be permitted on any road, path, or walk without permission from the Airport Manager or their designee. No person shall enter upon the paved runway of the Willits Municipal Airport, except when engaged in lawful business in the operation of aircraft or in assistance to operators of aircraft.

B. Controlled Access – Gates, locks, and access points must be secured, and tenants may not share access codes with unauthorized individuals or entities, disable or damage Airport gates, locks , or security keypads. Tenants are responsible for their guests and must monitor their guest’s activities at all times.

C. Trespassing – Only Airport tenants and authorized users are allowed on Airport property. All guests of tenants must be accompanied by the tenant at all times.

Unauthorized persons are not allowed on runways, taxiways, or ramps. EMS personnel are pre-authorized and exempt.

D. Wildlife and Pets – Pets must be leashed; feeding of wildlife is prohibited.

X. Environmental Standards
A. Waste Disposal – Trash, oil, fuel, and chemicals must be disposed of in approved containers.

B. Stormwater Protection – Dumping or disposal of hazardous materials in drains or on Airport grounds is strictly prohibited.

XI. Enforcement and Penalties
10 A. Violations – The Airport Manager may suspend access privileges, terminate leases, or recommend legal enforcement for violations.

1. Any airport tenant or person operating or handling aircraft in violation of the regulations set forth in this chapter, commencing with Section

2.40.030 and any regulations promulgated hereunder, including those provided at Section 2.40.040, or refusing to comply therewith, may be removed or evicted from the airport by or under the authority of the airport manager; and upon the order of the city council may be deprived of the further use of the airport and its facilities for such length of time as may be deemed necessary to insure safeguarding of the same and the public and its interest therein.

2. Any person, firm or corporation who violates or refuses to abide by any provisions set forth in Section 2.40.030, Section 2.40.040, or any of the rules and regulations set forth herein, or pursuant hereto, or any of the provisions or law provided therein, is guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine not exceeding one thousand dollars, or by imprisonment not exceeding six months, or by both such fine and imprisonment.

B. Appeals – Tenants and users may appeal enforcement actions to the City Council.

C. Emergencies – The City Council, City Manager, Airport Manager, or their designee may issue temporary rules during emergencies.

XII. Severability
If any section is found invalid, the remainder shall remain in full effect.

UNITED STATES DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

WASHINGTON DC

PAUL TREXEL,

APPELLANT,
v.

CITY OF WILLITS, CA,
APPELLEE. FAA Docket No. 16-23-07

NOTICE OF EXTENSION OF TIME
This matter is before the Federal Aviation Administration (FAA) based on the above-referenced complaint, filed in accordance with FAA Rules of Practice for Federally-Assisted Airport Enforcement Proceedings, 14 CFR part 16. Additional time is necessary and appropriate for a fair and complete consideration of the matters before the Agency. Accordingly, pursuant to 14 CFR part 16, subpart B, the date by which the Associate Administrator for Airports will issue the Final Agency Decision in this matter is hereby EXTENDED to and including February 16, 2026.
_______________________________
Michael Price
Manager, Office of Airport Compliance
and Management Analysis

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on December 16, 2025, I caused to be emailed a true copy of the foregoing Notice of Extension of Time for FAA Docket No. 16-23-07 addressed to:

FOR THE COMPLAINANT
Jol A. Silversmith KMA Zuckert LLC
Barbara M. Marrin KMA Zuckert LLC
888 17th Street, NW, Suite 700
Washington, DC 20006-3309
E-mail: [email protected]
E-mail: [email protected]

FOR THE RESPONDENT
W. Eric Pilsk
Steven L. Osit
Kaplan Kirsch & Rockwell, LLP
1634 I (Eye) Street NW, Suite 300
Washington, DC 20006
E-mail: [email protected]
E-mail: [email protected]
Copy to:

FAA Part 16 Airport Proceedings Docket (AGC-600)
FAA Office of Airport Compliance and Management Analysis (ACO-100) FAA Office of Airports Western Pacific Region (AWP-600) FAA San Francisco Airports District Office
Jason Lee
Office of Airport Compliance
and Management Analysis
Office of Airport Compliance
and Management Analysis
800 Independence Ave., SW
Washington, DC 20591
December 10, 2025
Kenan O’Shea
Streets Superintendent
Airport Operations – O28
Willits Municipal Airport
111 E. Commercial Street
Willits, California 95490
Re: Corrective Action Plan Closeout Letter - City of Willits, CA - FAA Docket No. 16-23-07 Dear Mr. O’ Shea:

The Director’s Determination I signed on April 11, 2025, found the City of Willits, CA, in violation of its federal obligations with respect to Grant Assurance 19, Operation and Maintenance. The City was directed to submit a Corrective Action Plan (CAP) for review and approval within 30 days from the issue date, which we received on May 9, 2025. The Director’s Determination ordered the City to explain in detail how it, as a sponsor of O28, intends to return to compliance with its federal grant obligations, including the following required actions:

1. Explain in detail how the City intends to return the Airport to compliance with its federal obligations concerning Grant Assurance 19, Operation and Maintenance, as described in Issue 2.

2. The CAP shall, at a minimum, describe the City’s plan and schedule to develop, implement, and enforce airport rules and regulations to address pedestrian and other unauthorized access to O28. The City’s plan should discuss efforts to appropriately staff, manage, and operate the airport in a manner that will ensure consistent, ongoing compliance with its federal obligations, as described in Issues 2 and 3.

My review of your May 9th proposed corrective actions is detailed below:

ISSUE 2 - CITY’S PROPOSED CORRECTIVE ACTION:

Regarding security improvement at O28, the City indicated it would:
2 1. Propose that the Willits City Council adopt an ordinance prohibiting unauthorized use of O28 and making such use of O28 and making such use as a misdemeanor. Staff expects to place this item on the City Council’s agenda for its July/August meeting.

2. Evaluate the need to install additional signage to warn people that pedestrians and vehicles may not access or use O28 except for aeronautical purposes or as expressly permitted by the City.

3. Strictly enforce current rules prohibiting airport tenants from sharing gate access codes or otherwise allowing unauthorized non-aeronautical users to access O28.

4. Regularly inspect the gate and fencing to ensure they are operating and in good repair.

5. Evaluate whether additional rules or ordinances are warranted as part of a comprehensive process to develop Rules and Regulations and Minimum Standards for O28.

Regarding Airport Rules and Staffing, the City indicated it would:

1. Request City Council approval to issue a Request for Proposal (RFP) for professional services to update existing ordinances and establish Rules, Regulations, and Minimum Standards for the Airport, and to conduct a Rate Study and Airport Assessment. Staff expects to place this item on the City Council’s agenda for its July/August meeting.

2. [The RFP will] specify a goal of improving security at the airport and the imposition of penalties and other enforcement mechanisms designed to reduce incidents of unauthorized public access to the airport and runway.

3. Enter a formal contract with the selected candidate with a clearly defined scope of work and deliverables. A projected date of completion will also be established in the contract term. The City is targeting six months from the City Council approval date to one year for documents to be completed. In researching the typical industry timeline, a Rate Study and Airport Assessment can normally be completed within six months, and Rules and Regulations is normally predicted to take up to one year.

4. Assign a staff maintenance technician to the Airport who will continue to make scheduled visits to the Airport to inspect the security camera system and control room to ensure it is functioning correctly, inspect all gates, fences, and access points to make sure they are secure, and there is no evidence of tampering. The Airport Manager and Operations Supervisor also make weekly and weekend visits, talk with tenants, and review the grounds. The Willits Police Department will continue to patrol the Airport as often as possible to monitor compliance and address any issues.

By letter dated July 1, 2025, I agreed the City can and should, in good faith, take immediate steps to enhance airfield safety and security prior to the July/August City Council meeting. I also acknowledged that certain corrective actions required formal (and time-consuming) City Council approval – such as procuring a new consultant to assist with airport rules and standards development. While I did not object, I noted my concern with yet another City procurementrelated delay in effectuating corrective actions. The City was directed to update my office with the outcome of the City Council vote(s), a detailed plan of action, a description of product deliverables, and the projected timeframe for development and implementation. The City’s May 9, 2025, CAP remained unapproved pending these actions. 3 On October 1, 2025, I issued a letter reminding the City of its obligation to report on the following information:

1. The outcome of the July/August City Council meeting concerning required approvals, approvals received or denied, and any other formal or informal action by the City to address corrective actions required to address Grant Assurance 19 finding of violation.

2. Provide the current status of the RFP effort, expected timeframe for consultant selection, expected task orders and deliverables, and expected timeframe for implementation.

Provide a detailed description of how the task order and deliverables will mitigate Grant Assurance 19 violation.

3. Provide an update on any and all corrective actions taken, completed, or otherwise implemented to mitigate the Grant Assurance 19 violation. Documentary evidence to support these actions/updates was required.

On October 18, 2025, the City provided a status update of the critical areas identified in its CAP submissions and subsequent actions taken:

CAP Item: Willits City Council proposes to adopt an ordinance prohibiting unauthorized use of O28 and making such use of O28 and making such use as a misdemeanor.

Action: Willits City Council adopted the municipal code and ordinance (Sections

2.40.040 and 2.40.130) by making trespassing and unauthorized use of the Airport a misdemeanor.

FAA Response: The FAA accepts this corrective action as a proactive measure to address unauthorized use of O28. The City is encouraged to enforce the code as necessary to maintain the safety and security of O28.

CAP Item: Evaluate the need to install additional signage to warn people that pedestrians and vehicles may not access or use O28 except for aeronautical purposes or as expressly permitted by the City.

Action: The City procured and installed additional perimeter “No Trespassing” signs at some of the unmonitored access points in accordance with existing City Municipal Code.

FAA Response: The FAA accepts this corrective action as a proactive measure to address unauthorized use of O28. The City is encouraged to continue monitoring for additional signage as needed.

CAP Item: Strictly enforce current rules prohibiting airport tenants from sharing gate access codes or otherwise allowing unauthorized non-aeronautical users to access O28.

Action: The City stated that unauthorized access, trespassing, and pedestrian activities have been significantly reduced. Willits Police Department has increased law enforcement presence, and the City is conducting monthly security footage reviews and weekly perimeter checks.

FAA Response: The FAA accepts this corrective action as a proactive measure to address unauthorized use of O28. The City is encouraged to enforce airport rules, regulations, and local ordinances as necessary to maintain the safety and security of O28. 4 CAP Item: Regularly inspect the gate and fencing to ensure they are operating and in good repair.

Action: The City is pursuing Federal funding for a wildlife fence, beginning with a wildlife study.

FAA Response: The FAA accepts this corrective action as a proactive measure to address unauthorized use of O28. While funding for additional fencing is a step in the right direction, airport gates and other access points should be regularly evaluated for proper function and expeditious repairs made, as necessary.

CAP Item: Evaluate whether additional rules or ordinances are warranted as part of a comprehensive process to develop Rules and Regulations and Minimum Standards for O28.

Action: The City developed a draft of Rules, Regulations, and Minimum Standards for O28 and shared a draft with my office for review.

FAA Response: Recognizing the rules are still in draft form and not officially implemented, the draft rules appear to be reasonable and relevant to O28 activities. The FAA finds the rules acceptable for the purposes of this CAP.

With regards to Issue 2 of the Director’s Determination and the City’s Corrective Action Plan submissions, I find the City’s corrective actions satisfy the intent of the Director’s Determination to bring the City back into compliance with Grant Assurance 19, Operations and Maintenance.

We urge the City to remain engaged on issues of safety and unauthorized access, particularly to aircraft movement areas, and to take proactive actions consistently and without delay in order to ensure airport safety is maintained at all times for the benefit of civil aviation.

Should you have any questions or concerns, do not hesitate to contact me at 202-267-3085 or [email protected].

Sincerely,
Michael Helvey
Director, Office of Airports Compliance
and Management Analysis
cc: Rod Wilburn, Interim City Manager
James Lance, City Attorney
RESOLUTION NO. 2026 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS,

CALIFORNIA, ADOPTING THE WILLITS MUNICIPAL AIRPORT RULES,

REGULATIONS AND MINIMUM STANDARDS
WHEREAS, the City of Willits (“City”) owns and operates the Willits Municipal Airport (“Airport”) for the use and benefit of the public; and
WHEREAS, the City Council deems it necessary to protect the public health, safety, security, and general welfare of the public and to ensure the safe and efficient operation of the Airport; and
WHEREAS, the City desires to adopt comprehensive Rules and Regulations to govern the use, operation, and maintenance of the Airport, in compliance with Federal Aviation Administration (FAA) regulations, California Public Utilities Code Sections 21001 et seq., and local ordinances; and
WHEREAS, the City Council finds that the adoption of these rules is exempt from the California Environmental Quality Act (CEQA)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Willits as follows:

1. Incorporation of Recitals: The above recitals are true and correct and are incorporated herein by reference.

2. Adoption of Rules and Regulations and Minimum Standards: The “Willits Municipal Airport Rules, Regulations and Minimum Standards,” attached hereto as Exhibit A, are hereby adopted and shall govern all activity at the Airport.

3. Compliance: All Airport tenants, lessees, permittees, and users shall comply with the attached Rules, Regulations and Minimum Standards.

4. Repeal of Prior Rules: All prior rules and regulations pertaining to the operation of the Willits Municipal Airport are hereby repealed.

5. Effective Date: This resolution shall become effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED this 28th day of January, 2026.

The City Of Willits

__________________________________
TOM ALLMAN, Mayor City of Willits
ATTEST:

I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 28th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:
_____________________________________
DELORES PEDERSEN, City Clerk
Item No. 5d
Meeting Date: January 28, 2026

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Dusty Duley, Community Development Director
Agenda Title: REVIEW AND APPROVE THE CITY OF WILLITS 2024 and 2025 GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS.

Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 20 minutes.

Summary of Request: Staff recommends that the City Council review and approve, by resolution, the 2024 and 2025 General Plan Annual Progress Reports and 2024 and 2025 Housing Element Annual Progress Reports (APR).

Introduction: Government Code Section 65400 and 65700 requires that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, the Governor’s Office of Land Use and Climate Innovation (LCI) and Department of Housing and Community Development (HCD).

LCI uses the General Plan APR to help identify how local planning activities relate to statewide planning goals and policies. There is no required format for reporting on the General Plan other than identifying progress made for all General Plans chapters within the last calendar year, with exception of the Housing Element. HCD provides a standard template for the Housing Element APR that cities complete to fulfill statutory requirements for reporting on housing information – including housing production and affordability, implementation of Housing Element programs, and local efforts to remove governmental constraints to the development of housing. Most notably, the Housing Element APR includes a tabulation of the City’s progress toward the eight-year Regional Housing Needs Assessment (RHNA) allocation, which is further detailed in the attached report. The deadline for submitting the report each year is April 1, however, there is no financial penalty for submitting the APR after the deadline.

Upon acceptance by City Council, these reports will be forwarded to LCI and HCD for review and acceptance.

Recommended Action: Adopt resolution to approve the City of Willits 2024 and 2025 General Plan and Housing Element Annual Progress Reports.

Alternative(s): None recommended.

Fiscal Impact: There is no fiscal impact associated with City Council Review and City submission of these annual reports to HCD and LCI.

Personnel Impact: No additional staff time is anticipated after report submission. However, if state agencies request revisions to the report(s), the Community Development Departments staff will need to complete the requested report revisions.

Identified City Council Conflict of Interest: None.
2021 Adopted Goals: The goals do not cover this topic.

California Environmental Quality Act: The General Plan APR is a reporting document and does not create or alter policy. The content is provided for informational purposes only and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306.

This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: Interim City Manager City Attorney City Clerk Finance Director Human Resources Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Jurisdiction Willits
Reporting Year 2024 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:

Category
Quantified Outcomes:

Count Supporting Documents
Program HE
‐

1.A: Housing
Rehabilitation Loan
Program
As funding is available, assist five lowerincome households over the 2019–2027planning period. Continue to
publicize informational brochures at
City Hall and the library and on
the Chamber of Commerce website
and/or the City website.
2019 6th Cycle Completed
The City re-establisehd
the CIty program in 2024
using Permanent Local
Housing Allocation (PLHA)
funds. The City has been
allocated an estimated
$553,857 in PLHA funds
for for the calendar years
2019-2025 and will be
using the funds to support
the revoling loan program
and suport the CIty's goal
to preserve our housing
stock. The City will
support another round of
funding in 2026. Program
information is publicized.

Households 5 https://www.cityofwillits.org/250/HousingResources Program HE
‐
1B:

First
‐
Time Homebuyers
Program
City residents are eligible for the FirstTime Homebuyers Program provided by the Rural Communities Housing
Development Corporation (RCHDC),
which provides financial assistance
through loans and/or grants to help
buyers with down payments, closing
costs, mortgageinsurance premiums,
and/or with a silent second trust deed.

The City will continue to refer
interestedresidents and provide
information regarding the program
Ongoing, refer interested
residents and provide
information regarding the
program as requested.
6th Cycle Continuous
City staff continues to
provide information to
interested City residents
provided by the Rural
Communities Housing
Development Corporation
(RCHDC), which provides
financial assistance
through loans and/or
grants to help buyers with
down payments, closing
costs, mortgage insurance
premiums, and/or with a
silent second trust deed.

Households https://www.cityofwillits.org/250/HousingResources

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Program HE
‐

1.C:

Infrastructure Provision
and Financing
Evaluate measures that reduce
infrastructure demands and,
consequently, the need for public
facilities to serve residential
development; analyze existing and
potential infrastructure financing
measures for their ability to meet
infrastructure needs without an adverse
impact to housing costs; and identify
and apply for State or USDA
infrastructure funding programs to
support improvement efforts. Continue
to consider fee exemptions when
energy and water conservation
measures are taken into account for
new development.

Annually evaluate
measures and apply for
funding as NOFAs are
released and as
applications are
processed though the
Community Development
Department.
6th Cycle Continuous
City received loans
from the CDPH and the
USDA to update
wastewater treatment
plant. The City has also
utilized additional
funding to establish
groundwater wells and a
groundwater treatment
facility to use in
emergency situations,
such as in times of
drought. The City is also
seeking funding to further
the groundwater system,
drilling new wells and
connecting them into the
existing infrastructure.

The City completed an
update to the Land Use
Element which included
an analysis of existing
infrastructure and
determined current
infrastructure can support
future growth scenarios
set by Council.

Other Contact City Services and Facilities
Department
Program HE
‐

1.D: Annual
Review of the Housing
Element
Maintain a Housing Element that is
effective in implementing housing goals.

Annually, before the April
1 deadline. 6th Cycle Continuous
City staff annually reviews
the Housing Element to
determine the
effectiveness of the
programs in achieving the
City’s housing goals,
policies, programs, and
objectives. The
Community Development
Department will provide
annual reports to the City
Council as to the
effectiveness of the
Housing Element. A copy
of this report will be sent
to the California
Department of Housing
and Community
Development.

Other https://www.cityofwillits.org/250/HousingResources Program HE
‐

1.E: Zoning
Ordinance Review and
Update
Review the Zoning Ordinance to
determine the effectiveness of the
ordinance in achieving goals and
objectives and, as needed, update the
Zoning Ordinance to comply with
changes to state planning and zoning
law requirements. Specifically, the City
will amend the Zoning Ordinance to
comply with AB 2162 which requires
supportive housing to be a use by right
in zones where multifamily and mixed
uses are permitted, including
nonresidential zones permitting
multifamily uses.t.

Annually review and revise
as needed. Staff
anticipates performing a
comprehensive update to
the Zoning Code in late
2023 and early 2024 to
ensure compatibility with
the updated Land Use
Element of the General
Plan set for completion
September 2023.
6th Cycle Continuous
In September 2018, the
City processed an
amendment to the Zoning
Ordinance to explicitly
allow both supportive and
transitional housing types
in all residential zones
subject only to the same
restrictions on residential
uses in the same type of
structure. The City
updated its Land Use
Element 2024, and plans
to update the Zoning Code
in 2025 to consider the
creation of a mixed-use
zoning district that allows
housing by right, waives
parking requirements, as
well as comprehensive
update to Zoning Map.

These changes would
help expand housing
opportunities and support
the City’s housing goals
Other
https://www.cityofwillits.org/143/PlanningDocuments
Ordinance 18-03
Program HE
‐

1.F: Water
and Sewer Service Priority
In compliance with Government Code
Section 65589.7, provide a copy of the
adopted Housing Element to local water
and sewer providers.

Within one month from
adoption of the Housing
Element.
6th Cycle Completed
The 2019-2027 Housing
Element was adopted
December 11, 2019. The
City of Willits is the local
provider of water and
sewer services for the
City. A copy of the
adopted 2019-2027
Housing Element was
provided to the City of
Willits Utilities
Superintendent.

Other Staff copy provided to City Water and
Wastewater Divisions
Program HE
‐

1.G:

Affordable Housing Water
Priority
Further the provision of lower-income
housing by granting priority with
respect to water hookups
Ongoing, as affordable
projects are processed
through the Community
Development Department.
6th Cycle Continuous
City staff currently uses
this provision for
lower
‐
income housing by
granting priority with
respect to water hookups.

Municipal water services
hookups are available to
support prospective
housing projects.

Units Annual Housing Element Report
Program HE
‐

2.A: Monitor
Residential Land Inventory
On a project-by-project basis, review the
City’s vacant and underutilized land
inventory to identify any constraints to
the development of that land.

Ongoing; update as
projects are approved
through the Community
Development Department.
6th Cycle Continuous
On a project
‐
by
‐
project
basis, city staff is
reviewing vacant and
underutilized land
inventory to identify any
constraints to the
development of that
land.The City maintains a
list of vacant and
underutilized land within
its Housing Element,
which is available at City
Hall and on the City’s
website.

Other https://www.cityofwillits.org/143/PlanningDocuments Program HE
‐

2.B: Lot
Consolidation
Encourage the consolidation of smaller
adjacent parcels zoned for residential
use, particularly parcels zoned for twofamily (R2) or multifamily (R3) development. This may include working
with property owners to consolidate
parcels, coordinating with local property
owners to support the development of
affordable two-family and multifamily
housing development, or working
with developers to identify suitable
vacant and adjoining R2 and R3 sites.

Also provide technical assistance to
developers or existing owners who wish
to consolidate adjacent
residentially zoned parcels. As
developers/owners approach the City
interested in lot consolidation
for the development of affordable
housing, offer the following incentives
on a project-by-project basis:allow
affordable projects to exceed the
maximum height limits, decrease
setbacks, and/or reduce
parking requirements.

Ongoing, as projects are
processed through the
Community Development
Department. Annually
meet with local developers
to discuss development
opportunities and
incentives for lot
consolidation.
6th Cycle Continuous
Staff is working with
property owners and
encouraging the
consolidation of smaller
parcels zoned for
residential use,
particularly parcels zoned
for two
‐
family (R2) or
multifamily (R3). City staff
is also providing technical
assistance to developers
or existing owners who
wish to consolidate
residentially zoned
parcels. As
developers/owners
approach the City
interested in lot
consolidation for the
development of affordable
housing, the City is
offerering the following
incentives on a
project
‐
by
‐
project basis:
allow affordable projects
to exceed the maximum
height limits, decrease
setbacks, and/or reduce
parking requirements.

Other Annual Housing Element Report
Program HE
‐
2C:

Incentives for the
Development of Affordable
Housing
On a project-by-project basis, offer fasttrack/priority processing, density bonuses, flexibility in development
standards, and fee subsidies (when
feasible) to developers proposing new
housing, mixed-use, or infill projects
affordable to lower-income households,
farmworkers, seniors, and other special
needs groups. Also look at reduced
parking standards
Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
On a project by project
basis, city staff is
offerering
fast
‐
track/priority
processing, density
bonuses, flexibility in
development standards,
and fee subsidies (when
feasible) to developers
proposing new housing,
mixed
‐
use, or infill
projects affordable to
lower
‐
income households,
farmworkers, seniors, and
other special needs
groups. The City has
updated the zoning code
to eliminate parking
standards for mixed use
developments in in the
Main Street Mixed Use
Zoning District
Units Annual Housing Element Report
Program HE
‐
2D:

Accessory Dwelling Unit
To encourage the production of
accessory dwelling units, offer
incentives such as the reduction of
parking requirements, reduction of
permit processing time, increase in floor
areas, and reduction of
setbacks, and promote accessory
dwelling units in subdivision
development by considering/creating
incentives for their production
Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is encouraging
the production of
accessory dwelling units,
by offering incentives
such as the reduction of
parking requirements,
reduction of permit
processing time, increase
in floor areas, reduction of
setbacks, and promoting
accessory dwelling units
in subdivision
development by
considering/creating
incentives for their
production. Staff has met
with real estate agents to
educate group on ADU
opportunities to proomote
opportunity to prospective
property sellers and
buyers
Units 10 Annual Housing Element Report
Program HE
‐
2E:

Mixed
‐
Use Development
Continue to facilitate the revitalization of
the downtown area of Willits by
allowing residential units above firstfloor commercial uses, and provide incentives for mixed-use
projects with an affordable residential
component.

For projects that contain housing units
affordable to lower-income households,
provide incentives
such as density bonuses, flexible
development standards, and/or fee
deferrals to encourage the
development of mixed-use projects that
contain affordable multifamily units. As
projects are brought
forward, consider reducing and/or
eliminating parking requirements for
residential units that are
placed above commercial
establishments.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
The City Zoning Code is
anticipated to be amended
in 2025 to create both the
Dowtown Main Street
Mixed Use (DU) and
General Plan Mixed Use
(GU) Zoning Districts. City
will consider allowing
residential uses by right
as well as reducing or
elimination parking
requirements
Chapter 17.67 provides
denisty bonus opportunity
for projects that contain
housing units affordable
to lower
‐
income
households.

Units Ordinance # 18-03
Program HE
‐

2.F: Housing
Opportunities
The Community Development and
Building departments will confer with
real estate agents, housing developers,
and financial institutions in order to
identify the items necessary
for the production of units affordable to
moderate- and above-moderate-income
households. Once these items have
been identified, the Community
Development Department will provide
this information to housing developers
and real estate brokers to encourage
the construction of market-rate housing.

Ongoing. Annually contact
real estate agents,
housing developers, and
financial institutions.
6th Cycle Continuous
The Community
Development Department
and Building Division are
working with local real
estate agents, housing
developers, and financial
institutions to idenify the
items necessary for the
production of units
affordable to moderate
‐
and
above
‐
moderate
‐
income
households. Once these
items have been identified,
the Community
Development Department
will provide this
information to housing
developers and real estate
brokers to encourage the
construction of market
‐
rate housing. Staff has
helped facilitate purchase
of a property by RCHDC
and is playing a support
role in grant applicantions
to suport a low-income
housing development.

Units 33 Annual Housing Element Report
Program HE
‐

2.G: Planned
Unit Development
Produce informational brochures
describing the PUD process and its
possibilities, identify areas of the city
which may be rezoned as PUD districts,
and identify possible
development incentives for a PUD, such
as density bonuses, infrastructure cost
sharing, and increased
housing density. City staff will provide
information on the benefits of PUD
districts to developers who are
considering developing a range of
housing types or who are looking for
greater flexibility.

The Community Development
Department will also provide developers
with a list of vacant sites in
the city suitable for rezoning to PUD to
accommodate a range of housing types
and flexible designs
The City had proposed to
develop informational
materials for developers
that identifies sites most
suitable for rezoning to
PUD and provide a listing
of those sites to
developers by Spring
2020. As a result of
continued staffing
restraints, the release date
has been extended
indefinitely until the Land
Use Element update has
been adopted.
6th Cycle Continuous
City staff is consulting
with developers to identify
what will make housing
development feasible in
Willits. Staff will create
informational brochures
on the Planned Unit
Development (PUD)
process, including
potential rezoning areas
and development
incentives such as density
bonuses and
infrastructure cost
sharing. A list of vacant
sites suitable for PUD
rezoning will be provided
following adoption of the
Land Use Element and
zoning code updates.

Units Annual Housing Element Report
Program HE
‐

2.H: Removal
of Governmental
Constraints to Housing
Development for Persons
with Special Needs.

Annually monitor existing land use
controls, permit and processing
procedures, fees and exactions, and
building codes for constraints on the
development, maintenance, and
improvement of housing.

Monitor annually. 6th Cycle Continuous
Chapter 17.65 was added
to the Zoning Code to
allow reasonable
accompodations to be
made for persons with
disabilities. Staff is
monitoring existing land
use controls, permit and
processing procedures,
fees and exactions, and
building codes for
constraints on the
development,
maintenance, and
improvement of housing.

Other Chapter 17.65 of the City Zoning Code
Program HE
‐

3.A: Permit
Streamlining and Priority
Processing
Reduce the time necessary to complete
the development permit process for
affordable housing.

Ongoing, as affordable
projects are processed
through the Community
Development Department.
6th Cycle Continuous
City staff continues to
streamline and provide
priority processing which
is reducing the time
necessary to complete the
development permit
process for affordable
housing.

Other Annual Housing Element Report
Program HE
‐

3.B:

Affordable Housing
Preservation
State law requires jurisdictions to
provide a program in their housing
elements to preserve publicly assisted
affordable housing projects at risk of
converting to market-rate housing.

Currently, Willits does not have any
publicly assisted affordable projects at
risk of converting. In order to prepare
for the possibility of conversion in the
future, the City will monitor the status of
all affordable housing projects and, as
their funding sources near expiration,
will work with the CDC of
Mendocino County and with the owners
to consider options to preserve such
units as affordable. The City will also
provide technical support to property
owners and tenants regarding proper
procedures relating to noticing and
options for preservation.

Monitor annually. 6th Cycle Continuous
Currently, Willits does not
have any publicly assisted
affordable projects at risk
of converting. In order to
prepare for the possibility
of conversion in the
future, the City is
monitoring the status of
all affordable housing
projects and, as their
funding sources near
expiration, will work with
the CDC of Mendocino
County and with the
owners to consider
options to preserve such
units as affordable. The
City also continues to
provide technical support
to property owners and
tenants regarding proper
procedures relating to
noticing and options for
preservation.

Units Annual Housing Element Report
Program HE
‐

3.C: State and
Federal Housing
Programs
Refer interested parties to the CDC of
Mendocino County to provide
assistance to nonprofit and private
housing developers to make use of
other programs which require their
application and participation.

Ongoing; refer as
approached by interested
parties. Annually reach out
to CDC of Mendocino
County and (RCHDC) to
determine available
programs.
6th Cycle Continuous
A number of state and
federal programs offer
low
‐
cost financing or
subsidies for the
production of low
‐
and
moderate
‐
income
housing. Certain programs
require an application and
participation by the local
public agency; other
programs are for use by
nonprofit housing
corporations and housing
authorities; and the
remaining programs
require application and
direct participation by a
private developer. City
staff continues to refer
interested parties to the
CDC of Mendocino County
to determine which
programs would be most
beneficial for housing
production in the city and
then directly or indirectly
pursue those programs.

Other Annual Housing Element Report
Program HE
‐

3.D:

Inclusionary Zoning
Ordinance
Consider the feasibility of adopting an
inclusionary housing ordinance which
would set forth minimum requirements
for the construction of affordable
housing (affordable to moderate-, low-,
and very-low-income households) in
new residential projects or
contributions to an affordable housing
trust fund.

The City was considering
a feasibility study for
Spring 2020. As a result of
Covid 19 and staffing
constraints the timeline
has been extended to
Spring 2022.
6th Cycle Not Yet Started
City staff introduced the
concept of an inclusionary
housing ordinance to the
Ciy Council in 2019. With
consideration to limited
staffing, funding and
existing projects, staff will
move forward in
developing the ordinance
as time permits.

Meetings Annual Housing Element Report
Program HE
‐

3.E:

Emergency Shelter
Development
Allow for the development of emergency
shelters Monitor annually. 6th Cycle Completed
The City Zoning Code was
updated to allow
emergency shelters by
right in the Heavy
Commercial (C2) Zoning
District. Emergency
Shelter regulations are
found in Chapter 17.63 of
the Zoning Ordinance.

City staff has been
meeting with community
group that is interested in
establishing a shelter in
Willits.

Other Chapter 17.63 of the City Zoning Code
Program HE
‐

3.F:

Extremely Low–Income
Households
Work with the CDC and the RCHDC on a
variety of activities, such as conducting
outreach to housing developers on an
annual basis; providing financial
assistance (when feasible), or in-kind
technical assistance; providing
expedited processing; identifying grant
and funding opportunities; applying for
or supporting applications for funding
on an ongoing basis; reviewing and
prioritizing local funding at least twice
in the planning period; and/or offering
additional incentives beyond the density
bonus.

Monitor annually. 6th Cycle Continuous
City staff has had regular
meeting with RCHDC on a
prospective low income
housing project and held 2
public meetings to
discuss potential projects.

Staff assisted RCHDC in
submitting a grant
application to the a
Caltrans Sustainable
Transportation Grant
series. Staff has also met
with other low-income
housing providers and
helped facilitate meeting
with property owners that
represents properties that
could support housing
developments for all
income groups.

Units Annual Housing Element Report
Program HE
‐

3.G:

Farmworker Housing
Provide for the development of
farmworker housing and continue to
support regional efforts.

Monitor annually. 6th Cycle Continuous
City amended the Zoning
Code to allow for the
develoment of Farm
Worker Housing
consistent with State law.

The City has not received
any applications to
establish Farm Worker
Housing.

Units Annual Housing Element Report
Program HE
‐

3.H: Larger
Multifamily Units
Encourage housing developers to
construct larger units to provide
housing for larger renter families and to
alleviate existing or future
overcrowding.

Ongoing, as applications
are processed through the
Community Development
Department.
6th Cycle Continuous
City staff continues to
contact housing
developers and promote
construction of all
housing types including
larger family units.

Units3 Annual Housing Element Report
Program HE
‐

3.I:

Assistance for Persons
with Developmental
Disabilities
Implement an outreach program to
assist persons with developmental
disabilities. Ongoing. 6th Cycle Continuous
City staff is developing an
outreach program to
assist persons with
developmental disabilities
that includes developing
an informational brochure
and directing people to
service information on the
City’s website.

Other Annual Housing Element Report
Program HE-3.J: Low
Barrier Navigation Centers
Consider the potential to accommodate
low barrier navigation centers for the
homeless by examining existing
government constraints and barriers.

Ongoing. Assessment is
currently ongoing with the
Land Use Element Update
set for completion by
September 2023.
6th Cycle In Progress
Per AB 101 (2019), review
the City’s zoning
ordinance and make
revisions if necessary to
allow low barrier
navigation centers for the
homeless per Government
Code 65660-65668.

Other Annual Housing Element Report
Program HE
‐

4.A: Housing
Discrimination and
Housing Equal
Opportunity
Prevent housing discrimination and
promote equal housing opportunities. Ongoing. 6th Cycle Continuous City staff will continue to
provide information and
refer persons to the
appropriate agencies as
complaints are received in
an effort to prevent
housing discrimination
and promote equal
housing opportunities.

Other Annual Housing Element Report
Program HE
‐

5.A:

Implementation of
California Energy
Conservation Standards
Promote energy and resource
conservation wherever possible.

Applicants for building permits must
continue to show compliance with the
State’s energy conservation
requirements at the time building plans
are submitted.

Ongoing. 6th Cycle Continuous
City staff continues to
promote energy and
resource conservation
wherever possible.

Applicants for building
permits must continue to
show compliance with the
State’s energy
conservation
requirements at the time
building plans are
submitted.

Other Annual Housing Element Report
Program HE
‐

5.B: Green
Building
Contribute to the reduction of
greenhouse gases and climate change
through the use of green building
technologies and materials.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is currently
researching areas
including but not limited
to Zoning Ordinance,
specific plans, and
development agreements
as appropriate, to enforce
state requirements,
including Title 24 of the
California Code of
Regulations, for energy
conservation in new
residential projects.

Other Annual Housing Element Report
Program HE
‐

5.C: Fee
Reduction
Contribute to the reduction of
greenhouse gases and climate change
through the use of green building
technologies and materials.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is continuing to
incentivize applicants who
contribute to the reduction
of greenhouse gases and
climate change through
the use of green building
technologies and
materials through the
reduction in fees and a
streamlined permitting
process.

Units Annual Housing Element Report
2024 HOUSING ELEMENT ANNUAL REPORT

DWELLING UNITS

APN ADDRESS UNIT DESCRIPTION BUILDING
PERMIT #
TYPE
006-023-40 410 Coast St. DETACHED ADU 20240082 ADU

111 E COMMERCIAL STREET, WILLITS CA 95490 • PHONE: 707-459-7112 • FAX: 707-459-1562 • www.https://cityofwillits.org/

CITY OF WILLITS

GENERAL PLAN

ANNUAL PROGRESS REPORT
2024
City of Willits
111 E. Commercial Street
Willits, CA 95490
Table of Contents
Section Page

1. INTRODUCTION ........................................................................................ 3

1.1 GENERAL PLAN UPDATE REQUIREMENTS PER STATE LEGISLATION................................... 4

1.2 GENERAL PLAN ELEMENTS ........................................................................................... 5

2. GENERAL PLAN UPDATES AND IMPLEMENTATION MEASURES ........................ 5

2.1 LAND USE ELEMENT: ................................................................................................... 6

2.2 SAFETY ELEMENT ........................................................................................................ 7

2.3 CIRCULATION ELEMENT............................................................................................... 8

2.4 CONSERVATION AND OPEN SPACE ELEMENT .................................................................. 9

2.5 PUBLIC SERVICES AND FACILITIES, PARKS AND RECREATION ELEMENT ............................. 9

2.6 NOISE ELEMENT........................................................................................................ 11

2.7 ECONOMIC DEVELOPMENT ELEMENT........................................................................... 11

2.8 HOUSING ELEMENT ................................................................................................... 13

3. HOUSING ELEMENT ANNUAL PROGRESS REPORT........................................ 14

3.1 MEETING THE REGIONAL HOUSING NEED..................................................................... 14 TABLES
Table 1 General Plan Elements ……………………………………………………………………………………………………………. 3 Table 2 Future Housing Needs, 2018–2027.......................................................................................... 14 Table 3 Comparison of Regional Growth Need and Residential Sites ................................................. 15

ATTACHMENTS
ATTACHMENT 1: 2024 HOUSING ELEMENT ANNUAL PROGRESS REPORT ............................ 14 2024 Willits General Plan Annual Progress Report
Community Development Department Page 3

CITY OF WILLITS

GENERAL PLAN ANNUAL PROGRESS REPORT
(January 1, 2024, to December 31, 2024)

1. INTRODUCTION
Government Code Section 65400 and 65700 requires that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR). The State does not have a standardized form or content guidance for General Plan APRs, so each municipality may cater the report to their own unique style. The deadline to submit the report each year is April 1. However, there is no penalty for submitting the APR after the deadline.

State law also requires that all cities and counties create an annual progress report that describes the community’s progress toward implementing their Housing Element. This Housing Element Annual Progress Report (HPR) has detailed data requirements, and the State has developed a standardized spreadsheet format for submitting the required data. The HPR also fulfills certain statutory requirements to report other housing information, such as the City’s progress toward meeting its share of regional housing needs, certain rezoning activities, actions taken towards completion of Housing Element programs, and local efforts to remove governmental constraints to the development of housing per Government Code Sections 65584.3(c) and 65584.5(b)(5).

Since its adoption in 1992, the City has worked diligently to implement the policies outlined in the Vision 2020 General Plan and has had many successes over the years. The various departments that comprise the City of Willits have completed many projects and are striving to achieve ongoing objectives and project goals related to each of the General Plan Elements. This report intends to summarize the status of the Willits Vision 2020 General Plan, introduce key development activities and projects that were implemented or completed in the 2024 calendar year, and examine the City’s progress in meeting its share of regional housing needs.

This document is a reporting document and does not create or alter policy. The content is provided for informational purposes only and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306. Upon acceptance by City Council, this APR report will be forwarded to the State to supplement the HPR.
2024 Willits General Plan Annual Progress Report
Community Development Department Page 4

1.1 GENERAL PLAN UPDATE REQUIREMENTS PER STATE LEGISLATION The State has adopted several amendments to Government Code §65302 that has added new statutory requirements to the required Elements of the General Plan or in General Plan APRs as follows:

Senate Bill (SB) 379 – Adopted 2015 : Requires the Safety Element to include a climate change vulnerability assessment, measures to address vulnerability, and comprehensive hazard mitigation and emergency response strategies. Addressing these topics is required upon the next revision of a Local Hazard Mitigation Plan (LHMP) after January 1, 2017, or, if the local jurisdiction has not adopted a LHMP prior to January 1, 2022.

Senate Bill (SB) 1000 – Adopted 2016 : Requires either a separate new Environmental Justice Element or related goals, policies, and objectives integrated into other Elements, if the jurisdiction has a disadvantaged community according to the Office of Environmental Health Hazard Assessment’s CalEnviroScreen tool. . The only disadvantaged community in or near the City of Willits, as defined by State law, is the Sherwood Valley Rancheria. SB 1000 is triggered when local governments adopt or revise two or more General Plan elements concurrently. Upon adoption of the revised Land Use Element(2024) and Safety Element (2025), the City of Willits may either comply with SB 1000 by developing a stand-alone Environmental Justice Element (EJ Element) as part of their General Plan, by adopting environmental justice policies incorporated in other elements throughout the General Plan, or through a hybrid approach that does both.

Senate Bill (SB) 1035 – Adopted 2018 : Amends the timing of updates related to the original bill language in SB 379 (see above). It requires jurisdictions to review and, if necessary, update the Safety Element upon each revision of the Housing Element or LHMP. This should be done at least once every eight years to identify new information not available during the previous revision relating to flood and fire hazards and climate adaptation and resiliency strategies.

Senate Bill (SB) 99 – Adopted 2019 : Requires cities, upon the next revision of the Housing Element on or after January 1, 2020, to review and update the safety element to include information identifying residential developments in hazard areas that do not have at least two emergency evacuation routes.

Senate Bill 1425 – Adopted 2022 : Requires the City to update the Open Space Element by Jan. 1, 2026 to include plans and an action program that address specified issues, including climate resilience and other co-benefits of open space, correlated with the Safety Element.

Assembly Bill (AB) 747 – Adopted 2019 : Requires jurisdictions to, after January 1, 2022, review and update the Safety Element of their General Plan as necessary to identify evacuation routes and evaluate their capacity, safety, and viability under a range of emergency scenarios. A jurisdiction that has adopted an LHMP, Emergency Operations Plan (EOP) or other document that fulfills these objectives may summarize and incorporate that document into the Safety Element to comply with AB 747.

Assembly Bill (AB) 168 – Adopted 2020 : Requires new information on the City’s responsibility to consult with California Native American tribes, and to identify and protect, preserve, and mitigate impacts to specified places, features, and objects, pursuant to specified law when adopting or 2024 Willits General Plan Annual Progress Report
Community Development Department Page 5
amending the General Plan or Open Space Element. Most recently, SB 1425 requires every local agency review and update its local Open Space Element by January 1, 2026.

Assembly Bill 1889 – Adopted 2024 : The “Room to Roam Act,” requires cities and counties to consider the effect of development on wildlife movement and habitat connectivity in the adoption or next revision of their general plan Conservation Element beginning on January 1, 2028.

Assembly Bill 2684 – Adopted 2024 : This bill requires a city or county, upon the next update of one or more of the elements included in the general plan on or after January 1, 2028, to review and update its Safety Element as necessary to address the hazard of extreme heat Upon the adoption of any update to an element of the General Plan or a comprehensive General Plan Update, the City of Willits will ensure that each and every statutory requirement is met.

1.2 GENERAL PLAN ELEMENTS
State law requires all cities and counties in California to adopt a General Plan, comprised at minimum of seven mandated “Elements,” that address physical development within its jurisdiction and include: land use, circulation, housing, conservation, open space, noise, and safety. Each of the seven mandatory general plan elements were prepared prior to adoption of the General Plan Guidelines established by the Office of Planning and Research.

Table 1 indicates the date that each of the
elements were last updated in the Willits
Vision 2020 General Plan, and which
elements are currently in the process of an
update.

2. GENERAL PLAN UPDATES AND IMPLEMENTATION MEASURES
Local governments are required to keep their General Plans current and internally consistent. Although General Plans must be kept current, there is no specific requirement that a local government update its General Plan on a particular timeline, with the exception of the Housing Element, which is formally required to be updated every eight years. Between January 1, 2024, and December 31, 2024, the City successfully implemented several initiatives and is undergoing multiple planning projects set for completion in the near future that correspond to specific Elements of the General Plan. Following the adoption of the updated Safety Element, the City plans to perform comprehensive updates to the Zoning Ordinance to accommodate changes made in land use designations and standards contained in the General Plan. This project is anticipated to begin in 2025 and continue throughout 2026.

GENERAL PLAN ELEMENT LAST UPDATE
Land Use 2024
Safety 1992 (update in process)
Circulation 1992
Conservation and Open Space 1992
Noise 1992
Public Services and Facilities 1992
Economic Development 1992
Housing 2019
Table 1. General Plan Elements
2024 Willits General Plan Annual Progress Report
Community Development Department Page 6

2.1 LAND USE ELEMENT:

The Land Use Element sets forth specific goals, objectives, policies, and maps to guide the intensity, location, and distribution of land uses. The Land Use Element Update was adopted on October 23, 2024.

Land Use Element Update and Sphere of Influence Amendment (Ongoing):

Since 2022, the City has been working with consultants Planwest Partners Inc. to assist in comprehensively updating the Land Use Element and amending the Sphere of Influence. The update accommodates current growth projections, addresses current community issues, and meets new statutory requirements relevant to housing needs. The update also includes an amendment to the City’s Sphere of Influence to include hundreds of acres of residentially zoned land bordering existing City boundaries for the purpose of providing new housing opportunities and acknowledging long standing municipal utility service connections. Throughout 2023 and 2024, significant progress was made updating the Land Use Element through various initiatives and engagements. An advisory committee comprising technical experts from City departments, partner agencies, and community members convened four times to provide feedback on project feasibility and direction.

Simultaneously, an online community survey available in both English and Spanish written languages received input from residents of all ages helping to shape policy and provide mapping recommendations used to update the Land Use Element. A community open house event at the Willits Community Center facilitated direct dialogue between stakeholders and City officials, encouraging active participation and information sharing. Complementing these public outreach efforts, a dedicated website served as a centralized hub for project updates, surveys, and informational resources.

Moreover, multiple City Council study sessions were conducted to help facilitate transparency, inform decision-makers, and solicit public input. The City released the Public Draft Land Use Element along with the Draft Environmental Impact Report(EIR) document in mid-2024. The City Council approved the Final EIR and Land Use Element public draft documents on October 23, 2024.

The project was funded through a combination of three grant programs. The three funding sources: Local Early Action Planning Grant (LEAP), Regional Early Action Planning Grant (REAP), and SB2 totaled approximately $260,000. The respective amounts of each funding source and a brief summary of the scope of each grant is provided below.
• Local Early Action Planning (LEAP): $65,000 to update the Land Use Element of the General Plan and complete environmental review pursuant to CEQA.
• Regional Early Action Planning (REAP): $35,364 to supplement the cost of preparing the appropriate CEQA document(s) to support an update to the Land Use Element of the General Plan. An Additional portion of the Mendocino Council of Government’s REAP grant was reallocated to the City of Willits to use as part of the Land Use Element update process.
2024 Willits General Plan Annual Progress Report
Community Development Department Page 7
• SB2: $160,000 to amend the City’s Sphere of Influence boundary to facilitate additional housing opportunities.

The expenditure deadline for the SB2 grant is September 30, 2023, the expenditure deadline for the REAP grant is December 31, 2023, and the deadline for the LEAP grant was extended to December 31, 2024. At this time, the funding for these three grants has been fully utilized and the City has received reimbursement from outside agencies. The project budget is constrained by the total funding of these three grants; however, the City anticipates pursuing additional funding for future project phases beyond the scope of this contract.

As the approved document to amend the Sphere of Influence moves forward for review and processing by the Local Agency Formation Commission (LAFCO), the City anticipates that it may need to revise the proposed amendment per LAFCO instruction. The City plans to perform comprehensive updates to the Zoning Ordinance to accommodate changes made in land use designations and standards contained in the General Plan. This project is anticipated to begin in 2025 and continue throughout 2026.

2.2 SAFETY ELEMENT
The focus of the Safety Element includes identifying safety risks and developing goals, policies, and implementation programs to better address these issues. The Safety Element was last updated in 1992 with the adoption of the Willits General Plan Vision 2020.

Safety Element Update (Ongoing):

A comprehensive update of the Draft Safety Element was released for public review in 2020. The Safety Element, and possibly other elements, may need to be
amended further to be consistent with any applicable
changes made to the Land Use Element. The updated Safety Element will meet compliance requirements of SB 379 and AB 2140, and includes a vulnerability assessment pursuant to SB 379, which identifies the risks that climate change poses to the City of Willits including, but not limited to, an assessment of how climate change may affect the risks
identified in the Local Hazard Mitigation Plan (LHMP).

Staff intended to bring the Safety Element update forward mid-2025, as it will likely require further revisions ensuring compatibility amongst other elements of the General Plan, however budget constraints have extended the timeline to 2026 or later. The City is seeking grant funds to support completion of the Safety Element Update.

The City is aware that following the adoption of the updated Safety Element, the staff intends to perform comprehensive updates to the Zoning Ordinance to accommodate changes made in land use designations and standards contained in the General Plan. This project is anticipated to begin in 2025 and continue throughout 2026. Amendments to the Zoning Ordinance related to the recently adopted Land Use Element Update are in progress.

Emergency Operations Plan (Completed in 2024)
2024 Willits General Plan Annual Progress Report
Community Development Department Page 8
The City of Willits Emergency Operations Plan (EOP) Part 1: Basic Plan is a foundational document for emergency management for staff, key partners, and the community. The City Manager serves as the City’s Office of Director of Emergency Services and is responsible for the review, revision, management, and distribution of the EOP annually. The EOP complies with the California Standardized Emergency Management System (SEMS), the National Incident Management System (NIMS), the State Emergency Plan and the California Emergency Services Act (Gov. Code § 8550 et seq.), and Willits Title 2, Chapter 2.44:

Emergency Services. The EOP was adopted by City Council at the September 11, 2024 Council meeting and has been shared with the Mendocino County Office of Emergency Services.

Flood Emergency Response Plan (Completed in 2024):

Much of Willits lies within Special Flood Hazard Areas (SFHA) as mapped by Federal Emergency Management Agency
(FEMA). In these SFHAs, the risk of flooding is present due to an excess of precipitation runoff and damming of drainage areas during major storm events.

The Flood Emergency Response Plan (FERP) Draft, which was adopted by Council on October 23, 2024, and has now become an annex of the City’s Emergency Operations Plan.

Development of the FERP required extensive planning and collaboration between key staff representatives and various local and regional agencies. The Plan features a Public Safety Map with organized protocols in the event of a flood. Staff and consultants assessed whether there were remaining gaps in the Flood Safety Plan and Public Safety Map to finalize this Plan. Throughout this process, staff and consultants have assessed potential gaps in the Flood Safety Plan and Public Safety Map to comprehensively include protocols and procedures for flood emergencies. The FERP remains a critical initiative aimed at enhancing local flood emergency response and bolstering public safety within the City of Willits.

The drafting of this Plan was funded by a grant awarded by the Department of Water Resources (DWR); by completing these plan updates in October 2024, the City was able to meet the final DWR grant reporting deadline of November 30, 2024.

2.3 CIRCULATION ELEMENT
The purpose of the Circulation Element of the Willits General Plan is to provide for a safe and efficient transportation system for existing and proposed uses within the City. This section addresses the street and highway network, railroads, transit services, and bicycle and pedestrian facilities within the community, in accordance with State Planning Law. The Circulation Plan and supporting goals, policies, and implementation actions are consistent with the land use provisions and standards within the General Plan.

The Circulation Element has not been updated since the adoption of the Willits Vision 2020 General Plan.

The City will likely need to identify grant funding to complete a comprehensive update to the Willits General Plan, including the Circulation Element.
2024 Willits General Plan Annual Progress Report
Community Development Department Page 9

2.4 CONSERVATION AND OPEN SPACE ELEMENT
This component of the General Plan focuses on the conservation and management of Willits’ open-space resources. As recognized in State law, open space serves a multitude of functions including: the preservation of natural resources; the managed production of resources such as agriculture; outdoor recreation; and the protection of public health and safety.

Urban Forest Management Plan:

On November 9, 2022, the Willits City Council
unanimously approved adoption of the Urban Forest
Management Plan (UFMP). The plan, under development
by staff and consultant firm Dudek, lays out goals,
objectives, and actions to achieve and enhance a healthy urban forest over the next 30 to 40 years. The project
involved collecting data on an inventory of approximately 320 City owned trees, and an initiative to plant an
additional 165 trees in City limits. Further, the Technical Assessment document included with the plan provides a
model municipal tree ordinance and a model heritage tree ordinance for potential future action by the City Council.

Four guiding principles of the UFMP help create the framework for the management plan and are as follows:

1. Sufficient Resources for the Urban Forest: “The city will provide the financial and human resources to sustainably manage the urban forest”;

2. A Sustainable and Resilient Urban Forest: “The urban forest will be prepared for changing environmental conditions brought on by climate change”;

3. Expand the Urban Forest: “Canopy cover will be increased above current levels for all residents and stakeholders”; and

4. Protect and Preserve the Urban Forest: “City policies and ordinances will contribute to large, healthy trees on both private and public property.”
Staff plans to continue searching for grant opportunities to plant additional trees in City parks and along sidewalks, actively manage existing trees, and develop tree ordinances identified in the UFMP.

One Ordinance the City intends to adopt in 2026 is a Tree Ordinance, as identified in Implementation Policy

3.360 of the Willits General Plan. Development of a Tree Ordinance is proposed to be funded by the American Rescue Plan Act (ARPA) grant awarded to the City.

2.5 PUBLIC SERVICES AND FACILITIES, PARKS AND RECREATION ELEMENT Willits contains 38.34 acres of existing parks and facilities, including recreational parks, neighborhoods parks, green space, and special use facilities. This Parks and Recreation Element establishes goals and policies that address the long-range provision and maintenance of parks and recreation facilities needed to improve the quality of life of existing and future Willits residents. The City of Willits needs additional recreational lands and facilities, and the policies and implementation measures included in this element are responsive to that demand. The overall focus of the Parks and Recreation Element is on providing recreational opportunities and facilities on a regional scale, including trails and waterways; securing 2024 Willits General Plan Annual Progress Report
Community Development Department Page 10
adequate funding sources; and increasing tourism and recreation-based businesses. The element also addresses the location, demand, management, and provision of parks and recreation facilities.

Willits Rail Trail Project (Ongoing):

In May of 2022, City staff completed the environmental review process for the Rail Trail Project and filed the Notice of Determination to the State. The project Design Phase has been finalized and the City has selected a contractor to construct the project. The objective of the Willits Rail Trail project is to provide a safe, accessible path from the southern end of Willits to the northern end, for non-motorized traffic.

The project will construct a 10-foot-wide paved, ADA
accessible, pedestrian and bicycle path, approximately 1.6 miles long, between East Hill Road and East Commercial
Street and within the Great Redwood Trail Agency (GRTA), formerly North Coast Railroad Authority (NCRA) right of way.

The trail will be a segment of the proposed Great Redwood Trail, which is currently planned as a continuous trail spanning from the North Bay to the Eureka area. Key design elements include lighting, fencing, security cameras,
landscaping, tree plantings, irrigation and three pedestrian bridges at creek crossings. This project is identified as a priority project in the City Bicycle and Pedestrian Plan, the County Regional Bikeway Plan, County Active Transportation Plan as well as the County Rail with Trail Corridor Plan. The project is anticipated to near completion sometime in 2027. The City is excited to provide an additional recreational opportunity, and an alternative mode of transportation as a means of improving local air quality, which meets the objective of General Plan Policy 3.290. Project construction is expected to be completed in 2026.

East Commercial Street Corridor Master Plan (Completed in 2024):

After multiple open-house events, Council meetings, and public outreach opportunities in 2022-2023, a draft plan was finalized. On February 28, 2024, City Council formally
accepted the East Commercial Street Corridor Master Plan (ECSCMP) and on October 23, 2024, Council formally
adopted the ECSCMP. This Plan encompasses
transportation, pedestrian, and park improvements
throughout the East Commercial Street Corridor. The Clean California Local Grant Program (CCLGP) grant application was submitted in May 2023, awarded in December 2023, and provides funding for several park and pedestrian
improvements’ construction and installation, as described in the ECSCMP.

Staff and consultants continue to search for opportunities to provide funding for the elements of the ECSCMP that are 2024 Willits General Plan Annual Progress Report
Community Development Department Page 11
not currently funded by the CCLGP grant. The City’s team of staff and consultants are currently preparing for a potential grant funding opportunity with the U.S. Department of Transportation’s Safe Streets and Roads for All (SS4A) funding program.

Willits Main Street Corridor Enhancement Plan:

The Clean California Local Grant Program (CCLGP) grant
applicant was submitted in May 2023, awarded in
December 2023, and provides funding for several
improvements’ construction and installation listed within the Main Street Plan. The items listed in the Plan that are funded by the CCLGP grant are: 1) Solar pedestrian lights, and 2) City Banner located south of the Oak and Main Street intersection. These improvements are anticipated to be
installed in 2026.

Staff and consultants continue to search for opportunities to provide funding for the elements of the Plan that are not currently funded by the CCLGP grant.

2.6 NOISE ELEMENT
This Noise Element identifies and analyzes projected noise conditions in the community and includes measures to abate or mitigate potential noise levels. Noise levels are actively monitored throughout the community by staff, and staff readily address any noise complaints received. Should complaints regarding undesirable noise levels increase significantly, staff will consider implementation of an ordinance providing control of excessive noise-generating activities. The Noise Element has not been updated since the adoption of the Willits Vision 2020 General Plan. The City will likely need to identify grant funding to complete a comprehensive update to the Willits General Plan, including the Noise Element.

2.7 ECONOMIC DEVELOPMENT ELEMENT
This component of the General Plan intends to strengthen community development activities, enhance economic growth, and reinforce the planning process as a positive part of economic development. An improved local business climate which recognizes sub-regional constraints and opportunities, expansion of the local tax base, and enhanced employment opportunities are benefits of a planning effort that has an emphasis on economic development.

Community Development Block Grant) Business Loan Program:

The City of Willits offered business loans funded with Community Development Block Grants (CDBG) from the California Department of Housing and Community Development (HCD). The purpose of these business loans was to provide flexible financing for businesses which, in turn, create or retain jobs. In late 2022, the City awarded thirteen local businesses a total of $470,000 in forgivable loans to provide assistance to mitigate the impacts of the COVID-19 pandemic. All loans were fully forgiven, and CDBG grant closeout was executed in September 2023. The City plans on pursuing funds through the 2025 CDBG NOFA to provide 2024 Willits General Plan Annual Progress Report
Community Development Department Page 12
further economic support to local businesses through a similar forgivable business loan program, with a portion of funds set aside to support establishment of new businesses. .

California Conservation Corps Willits Campus: The
California Conservation Corps (CCC) Willits Center
began construction in October 2022, after a 2-year
planning and review process with the City of Willits
and State of California. The Project involves
development of a new CCC operations center at 440
East Hill Road in the City of Willits to accommodate
relocation of existing operations at the CCC Ukiah
Center. The 27.7-acre Willits Center site is located
north of East Hill Road, bounded by U.S. Highway 101
Bypass on the east and the former Northwestern
Pacific Railroad corridor. The Project consists of a new CCC residential center that includes a total of
approximately 64,000 square feet (sf) of new building
construction. The Center will include 12 buildings
consisting of an administration building, seven
dormitories, an education building, a recreation
building, a multi-purpose building with kitchen and
dining room, a warehouse with work area and a
hazardous materials storage room. The Project also
includes a paved emergency crew and vehicle staging area and solar photovoltaic array. The facility’s design is based on the prototype and CCC’s residential needs to house 12 Permanent Corpsmembers. The center is intended to be designed to Zero Net Energy (ZNE) by the Governor’s Executive Order (EO) B-18-12 and achieve at minimum a Leadership in Energy and Environmental Design (LEED) Silver certification. The facility is projected to be completed in summer 2025. Once finalized, existing Ukiah Center CCC housing and training functions would be relocated to the Willits facility. 2024 Willits General Plan Annual Progress Report
Community Development Department Page 13

2.8 HOUSING ELEMENT
The Housing Element of the General Plan is a
comprehensive statement by the City of Willits regarding its current and future housing needs and proposed actions to facilitate the provision of housing to meet those needs at all income levels. The policies contained in this element reflect the requirements of the statewide housing priority to allow for the “attainment of decent housing and a
suitable living environment for every Californian,” as well as a reflection of the unique concerns of the community.

The purpose of the Housing Element is therefore to
establish specific goals, policies, and objectives related to the provision of housing and to adopt an action
(implementation) plan toward this end. In addition, the Housing Element identifies and analyzes housing needs
and resources and constraints to meet those needs.

The revised draft of the Housing Element was adopted by Willits City Council on December 11, 2019, and meets full compliance with the State Housing Element law (Article 10.6 of the Government Code). The 2019 Housing Element update addresses the City’s housing needs over the 2019–2027 Housing Element planning period. The Housing Element update has been analyzed for consistency with the City’s General Plan and does not propose any goals, policies, or programs that are considered contrary to General Plan goals, policies, or programs. The City’s plan for addressing its identified housing needs focuses on the following areas:
• Housing Quality
• Housing Supply and Neighborhood Conservation
• Housing Affordability
• Equal Housing Opportunity
• Natural Resource and Energy Conservation
Permanent Local Housing Allocation Grant Program (Ongoing):

In December 2022, the City applied to the Permanent Local Housing Allocation grant program to support a City Housing Rehabilitation Program. The Program proposes using PLHA funding to implement an owneroccupied home rehabilitation loan program, offering low or no interest loans to homeowners under 120- percent of the Area Median Income. Generally, the program will provide rehabilitation home loans for activities including but not limited to bringing properties up to current code standards, implementing accessibility upgrades, repair or replacement of major systems such as HVAC or plumbing, abatement of asbestos or lead paint, fixing roof, siding, foundations or other activities which will prevent deterioration, extend the lifespan of the dwelling, and support homeowner affordability. The City received $371,856 in June 2023 to support this revolving loan Program. The City has successfully created the City Housing Rehabilitation Program and completed the first round of loans. The City understands that an additional estimated $173,000 in PLHA funds will become available over the next year to further support the revolving loan program and the City’s goal to preserve its housing stock. 2024 Willits General Plan Annual Progress Report
Community Development Department Page 14

3. HOUSING ELEMENT ANNUAL PROGRESS REPORT
The Regional Housing Needs Plan (RHNP) is mandated by the State of California (Government Code Section 65584) and requires regions to address housing issues and needs based on future growth projections for the area. The California Department of Housing and Community Development (HCD) allocates regional housing needs numbers to regional councils of governments throughout the state. The RHNP for Mendocino County is facilitated by the Mendocino Council of Governments (MCOG) and allocates to the Cities of Ukiah, Fort Bragg, Willits, and Point Arena and the unincorporated area of Mendocino County their “fair share” of the region’s projected housing needs, also known as the Regional Housing Needs Allocation (RHNA). Table 1 lists the breakdown of the RHNA for the City of Willits, by income group, for the 2018–2027 period.

Table 1 Future Housing Needs, 2018–2027
INCOME CATEGORY 2018-2027 RHNA
Extremely Low 17 15%
Very Low 17 15%
Low 25 23%
Moderate 17 15%
Above Moderate 34 31%
Total 111 100%
In addition to tracking building permits issued, the City also monitors the number of housing entitlements approved.

Accessory Dwelling Units:

In September 2018, the City Council adopted an Accessory Dwelling Unit (ADU) ordinance to align with state law at that time. Since then, the State has enacted multiple rounds of ADU legislation, including major updates in late 2019, that streamlined requirements, expanded development opportunities, and restricted the extent to which local jurisdictions may regulate ADUs. State ADU laws have continued to evolve almost every year since the City’s last ordinance update.

Senate Bill 9:

Senate Bill (SB) 9 (Atkins) was signed into law by Governor Newsom on September 16, 2021, and became effective January 1, 2022. It allows a single-family zoned parcel (including single-family Planned Unit Developments) to be subdivided into two parcels and two residences to be constructed on each parcel and to be approved ministerially if certain requirements are met. Staff has created an application for SB 9 urban lot splits and promoted the opportunity within the community however staff received no applications in 2024.

3.1 MEETING THE REGIONAL HOUSING NEED
Table 2 compares the City of Willits’ RHNA to the site inventory capacity. After including the credit of housing units constructed between January 2018 and December 2023, the City has a surplus of available land to support housing units of all income groups as shown in Table 3 below. 2024 Willits General Plan Annual Progress Report
Community Development Department Page 15
Table 2 Comparison of Regional Growth Need and Residential Sites INCOME GROUP 2018-2027
RHNA
Units Permitted
(1/1/2018 –
12/31/2024)
Remaining
RHNA
Vacant
Inventory
Capacity
RHNA Surplus
Extremely Low 17 0
34 Very Low 17 0 318 259
Low 25 4 21
Moderate 17 22 0 352 335
Above Moderate 35 6 29 62 27
Total 111 32 84 732 621
Provided in Attachment 1 is the 2024 Housing Element Report to be submitted to the California Department of Housing and Community Development (HCD).

ATTACHMENT 1: 2024 Housing Element Annual Progress Report ATTACHMENT 2: 2024 Housing Element Report Summary
Resolution No. 2026- January 14, 2026
RESOLUTION NO. 2026-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS TO APPROVE THE 2024 GENERAL PLAN ANNUAL PROGRESS REPORT AND 2024 HOUSING ELEMENT ANNUAL

PROGRESS REPORT,
WHEREAS, Government Code Section 65400 and 65700 mandates that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR); and
WHEREAS, the General Plan Annual Progress Report intends to summarize the status of the Willits General Plan, introduce key development activities and projects that were implemented or completed in the 2024 Calendar year, and examine the City’s progress in meeting its share of regional housing needs; and
WHEREAS, the 2024 General Plan Annual Progress Report includes reporting for progress pertaining to the City’s Housing Element; and
WHEREAS, the State of California Housing and Community Development Department (HCD) requires municipalities submit information that allows HCD to track any impediments to the construction of new housing that may exist and to monitor progress toward satisfaction of statewide housing needs and goals; and
WHEREAS, this 2024 General Plan Annual Progress Report will be submitted with the Housing Element Progress Report for state agency review after receiving Council approval; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Willits approves the 2024 General Plan Annual Progress Report and 2024 Housing Element Annual Progress Report, and hereby authorizes the Community Development Director, or his/her designee, to submit these Annual Progress Reports for state agency review.

PASSED, APPROVED AND ADOPTED, this 14th day of January, 2026.

THE CITY OF WILLITS
______________________________
TOM ALLMAN, Mayor
ATTEST:

Resolution No. 2026- January 14, 2026
I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 14th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:
______________________________
DELORES PEDERSEN, City Clerk
Jurisdiction Willits
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:

Category
Quantified Outcomes:

Count Supporting Documents
Program HE
‐

1.A: Housing
Rehabilitation Loan
Program
As funding is available, assist five lowerincome households over the 2019–2027planning period. Continue to
publicize informational brochures at City
Hall and the library and on
the Chamber of Commerce website
and/or the City website.
2019 6th Cycle Completed
The City re-establisehd the
CIty program in 2024 using
Permanent Local Housing
Allocation (PLHA) funds.

The City has been
allocated an estimated
$553,857 in PLHA funds
for for the calendar years
2019-2025 and will be
using the funds to support
the revoling loan program
and suport the CIty's goal
to preserve our housing
stock. The City will
support another round of
funding in 2026. Program
information is publicized.

Households 5 https://www.cityofwillits.org/250/HousingResources Program HE
‐
1B: First
‐
Time
Homebuyers Program
City residents are eligible for the FirstTime Homebuyers Program provided by the Rural Communities Housing
Development Corporation (RCHDC),
which provides financial assistance
through loans and/or grants to help
buyers with down payments, closing
costs, mortgageinsurance premiums,
and/or with a silent second trust deed.

The City will continue to refer
interestedresidents and provide
information regarding the program
Ongoing, refer interested
residents and provide
information regarding the
program as requested.
6th Cycle Continuous
City staff continues to
provide information to
interested City residents
provided by the Rural
Communities Housing
Development Corporation
(RCHDC), which provides
financial assistance
through loans and/or
grants to help buyers with
down payments, closing
costs, mortgage insurance
premiums, and/or with a
silent second trust deed.

Households https://www.cityofwillits.org/250/HousingResources

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Program HE
‐

1.C:

Infrastructure Provision
and Financing
Evaluate measures that reduce
infrastructure demands and,
consequently, the need for public
facilities to serve residential
development; analyze existing and
potential infrastructure financing
measures for their ability to meet
infrastructure needs without an adverse
impact to housing costs; and identify
and apply for State or USDA
infrastructure funding programs to
support improvement efforts. Continue
to consider fee exemptions when energy
and water conservation measures are
taken into account for new development.

Annually evaluate
measures and apply for
funding as NOFAs are
released and as
applications are
processed though the
Community Development
Department.
6th Cycle Continuous
City received loans
from the CDPH and the
USDA to update
wastewater treatment
plant. The City has also
utilized additional
funding to establish
groundwater wells and a
groundwater treatment
facility to use in
emergency situations,
such as in times of
drought. The City is also
seeking funding to further
the groundwater system,
drilling new wells and
connecting them into the
existing infrastructure.

The City completed an
update to the Land Use
Element which included an
analysis of existing
infrastructure and
determined current
infrastructure can support
future growth scenarios
set by Council.

Other Contact City Services and Facilities
Department
Program HE
‐

1.D: Annual
Review of the Housing
Element
Maintain a Housing Element that is
effective in implementing housing goals.

Annually, before the April
1 deadline. 6th Cycle Continuous
City staff annually reviews
the Housing Element to
determine the
effectiveness of the
programs in achieving the
City’s housing goals,
policies, programs, and
objectives. The
Community Development
Department will provide
annual reports to the City
Council as to the
effectiveness of the
Housing Element. A copy
of this report will be sent
to the California
Department of Housing
and Community
Development.

Other https://www.cityofwillits.org/250/HousingResources Program HE
‐

1.E: Zoning
Ordinance Review and
Update
Review the Zoning Ordinance to
determine the effectiveness of the
ordinance in achieving goals and
objectives and, as needed, update the
Zoning Ordinance to comply with
changes to state planning and zoning
law requirements. Specifically, the City
will amend the Zoning Ordinance to
comply with AB 2162 which requires
supportive housing to be a use by right
in zones where multifamily and mixed
uses are permitted, including
nonresidential zones permitting
multifamily uses.t.

Annually review and revise
as needed. Staff
anticipates performing a
comprehensive update to
the Zoning Code in late
2023 and early 2024 to
ensure compatibility with
the updated Land Use
Element of the General
Plan set for completion
September 2023.
6th Cycle Continuous
In September 2018, the
City processed an
amendment to the Zoning
Ordinance to explicitly
allow both supportive and
transitional housing types
in all residential zones
subject only to the same
restrictions on residential
uses in the same type of
structure. The City
updated its Land Use
Element 2024, followed by
updates to the Zoning
Code in 2025. Key
changes included the
creation of a mixed-use
zoning district that allows
housing by right, waives
parking requirements, and
update to Zoning Map.

These changes were
implemented to expand
housing opportunities and
support the City’s housing
goals
Other
https://www.cityofwillits.org/143/PlanningDocuments
Ordinance 18-03
Program HE
‐

1.F: Water
and Sewer Service Priority
In compliance with Government Code
Section 65589.7, provide a copy of the
adopted Housing Element to local water
and sewer providers.

Within one month from
adoption of the Housing
Element.
6th Cycle Completed
The 2019-2027 Housing
Element was adopted
December 11, 2019. The
City of Willits is the local
provider of water and
sewer services for the
City. A copy of the
adopted 2019-2027
Housing Element was
provided to the City of
Willits Utilities
Superintendent.

Other Staff copy provided to City Water and
Wastewater Divisions
Program HE
‐

1.G:

Affordable Housing Water
Priority
Further the provision of lower-income
housing by granting priority with
respect to water hookups
Ongoing, as affordable
projects are processed
through the Community
Development Department.
6th Cycle Continuous
City staff currently uses
this provision for
lower
‐
income housing by
granting priority with
respect to water hookups.

Municipal water services
hookups are available to
support prospective
housing projects.

Units Annual Housing Element Report
Program HE
‐

2.A: Monitor
Residential Land Inventory
On a project-by-project basis, review the
City’s vacant and underutilized land
inventory to identify any constraints to
the development of that land.

Ongoing; update as
projects are approved
through the Community
Development Department.
6th Cycle Continuous
On a project by project
basis, city staff is
reviewing vacant and
underutilized land
inventory to identify any
constraints to the
development of that
land.The City maintains a
list of vacant and
underutilized land within
its Housing Element,
which is available at City
Hall and on the City’s
website.

Other https://www.cityofwillits.org/143/PlanningDocuments Program HE
‐

2.B: Lot
Consolidation
Encourage the consolidation of smaller
adjacent parcels zoned for residential
use, particularly parcels zoned for twofamily (R2) or multifamily (R3) development. This may include working
with property owners to consolidate
parcels, coordinating with local property
owners to support the development of
affordable two-family and multifamily
housing development, or working
with developers to identify suitable
vacant and adjoining R2 and R3 sites.

Also provide technical assistance to
developers or existing owners who wish
to consolidate adjacent
residentially zoned parcels. As
developers/owners approach the City
interested in lot consolidation
for the development of affordable
housing, offer the following incentives
on a project-by-project basis:allow
affordable projects to exceed the
maximum height limits, decrease
setbacks, and/or reduce
parking requirements.

Ongoing, as projects are
processed through the
Community Development
Department. Annually meet
with local developers to
discuss development
opportunities and
incentives for lot
consolidation.
6th Cycle Continuous
Staff is working with
property owners and
encouraging the
consolidation of smaller
parcels zoned for
residential use,
particularly parcels zoned
for two
‐
family (R2) or
multifamily (R3). City staff
is also providing technical
assistance to developers
or existing owners who
wish to consolidate
residentially zoned
parcels. As
developers/owners
approach the City
interested in lot
consolidation for the
development of affordable
housing, the City is
offerering the following
incentives on a
project
‐
by
‐
project basis:
allow affordable projects
to exceed the maximum
height limits, decrease
setbacks, and/or reduce
parking requirements.

Other Annual Housing Element Report
Program HE
‐
2C: Incentives
for the Development of
Affordable Housing
On a project-by-project basis, offer fasttrack/priority processing, density bonuses, flexibility in development
standards, and fee subsidies (when
feasible) to developers proposing new
housing, mixed-use, or infill projects
affordable to lower-income households,
farmworkers, seniors, and other special
needs groups. Also look at reduced
parking standards
Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
On a project by project
basis, city staff is
offerering
fast
‐
track/priority
processing, density
bonuses, flexibility in
development standards,
and fee subsidies (when
feasible) to developers
proposing new housing,
mixed
‐
use, or infill
projects affordable to
lower
‐
income households,
farmworkers, seniors, and
other special needs
groups. The City has
updated the zoning code
to eliminate parking
standards for mixed use
developments in in the
Main Street Mixed Use
Zoning District
Units Annual Housing Element Report
Program HE
‐
2D:

Accessory Dwelling Unit
To encourage the production of
accessory dwelling units, offer
incentives such as the reduction of
parking requirements, reduction of
permit processing time, increase in floor
areas, and reduction of
setbacks, and promote accessory
dwelling units in subdivision
development by considering/creating
incentives for their production
Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is encouraging
the production of
accessory dwelling units,
by offering incentives
such as the reduction of
parking requirements,
reduction of permit
processing time, increase
in floor areas, reduction of
setbacks, and promoting
accessory dwelling units
in subdivision
development by
considering/creating
incentives for their
production. Staff has met
with real estate agents to
educate group on ADU
opportunities to proomote
opportunity to prospective
property sellers and
buyers
Units 10 Annual Housing Element Report
Program HE
‐
2E:

Mixed
‐
Use Development
Continue to facilitate the revitalization of
the downtown area of Willits by
allowing residential units above firstfloor commercial uses, and provide incentives for mixed-use
projects with an affordable residential
component.

For projects that contain housing units
affordable to lower-income households,
provide incentives
such as density bonuses, flexible
development standards, and/or fee
deferrals to encourage the
development of mixed-use projects that
contain affordable multifamily units. As
projects are brought
forward, consider reducing and/or
eliminating parking requirements for
residential units that are
placed above commercial
establishments.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
The City Zoning Code was
amennded in 2025 to
create both the Dowtown
Main Street Mixed Use
(DU) and General Plan
Mixed Use (GU) Zoning
Districts. Residential uses
are permitted by right in
the zoning districts.

Parking requirements were
waived in the DU zone.

Chapter 17.67 provides
denisty bonus opportunity
for projects that contain
housing units affordable
to lower
‐
income
households.

Units Ordinance # 18-03 and # 25-03
Program HE
‐

2.F: Housing
Opportunities
The Community Development and
Building departments will confer with
real estate agents, housing developers,
and financial institutions in order to
identify the items necessary
for the production of units affordable to
moderate- and above-moderate-income
households. Once these items have
been identified, the Community
Development Department will provide
this information to housing developers
and real estate brokers to encourage the
construction of market-rate housing.

Ongoing. Annually contact
real estate agents,
housing developers, and
financial institutions.
6th Cycle Continuous
The Community
Development Department
and Building Division are
working with local real
estate agents, housing
developers, and financial
institutions to idenify the
items necessary for the
production of units
affordable to moderate
‐
and
above
‐
moderate
‐
income
households. Once these
items have been identified,
the Community
Development Department
will provide this
information to housing
developers and real estate
brokers to encourage the
construction of market
‐
rate housing. Staff has
helped facilitate purchase
of a property by RCHDC
and is playing a support
role in grant applicantions
to suport a low-income
housing development.

Units 33 Annual Housing Element Report
Program HE
‐

2.G: Planned
Unit Development
Produce informational brochures
describing the PUD process and its
possibilities, identify areas of the city
which may be rezoned as PUD districts,
and identify possible
development incentives for a PUD, such
as density bonuses, infrastructure cost
sharing, and increased
housing density. City staff will provide
information on the benefits of PUD
districts to developers who are
considering developing a range of
housing types or who are looking for
greater flexibility.

The Community Development
Department will also provide developers
with a list of vacant sites in
the city suitable for rezoning to PUD to
accommodate a range of housing types
and flexible designs
The City had proposed to
develop informational
materials for developers
that identifies sites most
suitable for rezoning to
PUD and provide a listing
of those sites to
developers by Spring
2020. As a result of
continued staffing
restraints, the release date
has been extended
indefinitely until the Land
Use Element update has
been adopted.
6th Cycle Continuous
City staff is consulting
with developers to identify
what will make housing
development feasible in
Willits. Staff will create
informational brochures
on the Planned Unit
Development (PUD)
process, including
potential rezoning areas
and development
incentives such as density
bonuses and
infrastructure cost
sharing. A list of vacant
sites suitable for PUD
rezoning will be provided
following adoption of the
Land Use Element and
zoning code updates.

Units Annual Housing Element Report
Program HE
‐

2.H: Removal
of Governmental
Constraints to Housing
Development for Persons
with Special Needs.

Annually monitor existing land use
controls, permit and processing
procedures, fees and exactions, and
building codes for constraints on the
development, maintenance, and
improvement of housing.

Monitor annually. 6th Cycle Continuous
Chapter 17.65 was added
to the Zoning Code to
allow reasonable
accompodations to be
made for persons with
disabilities. Staff is
monitoring existing land
use controls, permit and
processing procedures,
fees and exactions, and
building codes for
constraints on the
development,
maintenance, and
improvement of housing.

Other Chapter 17.65 of the City Zoning Code
Program HE
‐

3.A: Permit
Streamlining and Priority
Processing
Reduce the time necessary to complete
the development permit process for
affordable housing.

Ongoing, as affordable
projects are processed
through the Community
Development Department.
6th Cycle Continuous
City staff continues to
streamline and provide
priority processing which
is reducing the time
necessary to complete the
development permit
process for affordable
housing.

Other Annual Housing Element Report
Program HE
‐

3.B:

Affordable Housing
Preservation
State law requires jurisdictions to
provide a program in their housing
elements to preserve publicly assisted
affordable housing projects at risk of
converting to market-rate housing.

Currently, Willits does not have any
publicly assisted affordable projects at
risk of converting. In order to prepare
for the possibility of conversion in the
future, the City will monitor the status of
all affordable housing projects and, as
their funding sources near expiration,
will work with the CDC of
Mendocino County and with the owners
to consider options to preserve such
units as affordable. The City will also
provide technical support to property
owners and tenants regarding proper
procedures relating to noticing and
options for preservation.

Monitor annually. 6th Cycle Continuous
Currently, Willits does not
have any publicly assisted
affordable projects at risk
of converting. In order to
prepare for the possibility
of conversion in the
future, the City is
monitoring the status of all
affordable housing
projects and, as their
funding sources near
expiration, will work with
the CDC of Mendocino
County and with the
owners to consider
options to preserve such
units as affordable. The
City also continues to
provide technical support
to property owners and
tenants regarding proper
procedures relating to
noticing and options for
preservation.

Units Annual Housing Element Report
Program HE
‐

3.C: State and
Federal Housing Programs
Refer interested parties to the CDC of
Mendocino County to provide
assistance to nonprofit and private
housing developers to make use of
other programs which require their
application and participation.

Ongoing; refer as
approached by interested
parties. Annually reach out
to CDC of Mendocino
County and (RCHDC) to
determine available
programs.
6th Cycle Continuous
A number of state and
federal programs offer
low
‐
cost financing or
subsidies for the
production of low
‐
and
moderate
‐
income housing.

Certain programs require
an application and
participation by the local
public agency; other
programs are for use by
nonprofit housing
corporations and housing
authorities; and the
remaining programs
require application and
direct participation by a
private developer. City
staff continues to refer
interested parties to the
CDC of Mendocino County
to determine which
programs would be most
beneficial for housing
production in the city and
then directly or indirectly
pursue those programs.

Other Annual Housing Element Report
Program HE
‐

3.D:

Inclusionary Zoning
Ordinance
Consider the feasibility of adopting an
inclusionary housing ordinance which
would set forth minimum requirements
for the construction of affordable
housing (affordable to moderate-, low-,
and very-low-income households) in
new residential projects or contributions
to an affordable housing trust fund.

The City was considering
a feasibility study for
Spring 2020. As a result of
Covid 19 and staffing
constraints the timeline
has been extended to
Spring 2022.
6th Cycle Not Yet Started
City staff introduced the
concept of an inclusionary
housing ordinance to the
Ciy Council in 2019. With
consideration to limited
staffing, funding and
existing projects, staff will
move forward in
developing the ordinance
as time permits.

Meetings Annual Housing Element Report
Program HE
‐

3.E:

Emergency Shelter
Development
Allow for the development of emergency
shelters Monitor annually. 6th Cycle Completed
The City Zoning Code was
updated to allow
emergency shelters by
right in the Heavy
Commercial (C2) Zoning
District. Emergency
Shelter regulations are
found in Chapter 17.63 of
the Zoning Ordinance.

City staff has been
meeting with community
group that is interested in
establishing a shelter in
Willits.

Other Chapter 17.63 of the City Zoning Code
Program HE
‐

3.F:

Extremely Low–Income
Households
Work with the CDC and the RCHDC on a
variety of activities, such as conducting
outreach to housing developers on an
annual basis; providing financial
assistance (when feasible), or in-kind
technical assistance; providing
expedited processing; identifying grant
and funding opportunities; applying for
or supporting applications for funding
on an ongoing basis; reviewing and
prioritizing local funding at least twice in
the planning period; and/or offering
additional incentives beyond the density
bonus.

Monitor annually. 6th Cycle Continuous
City staff has had regular
meeting with RCHDC on a
prospective low income
housing project and held 2
public meetings to discuss
potential projects. Staff
assisted RCHDC in
submitting a grant
application to the a
Caltrans Sustainable
Transportation Grant
series. Staff has also met
with other low-income
housing providers and
helped facilitate meeting
with property owners that
represents properties that
could support housing
developments for all
income groups.

Units Annual Housing Element Report
Program HE
‐

3.G:

Farmworker Housing
Provide for the development of
farmworker housing and continue to
support regional efforts.

Monitor annually. 6th Cycle Continuous
City amended the Zoning
Code to allow for the
develoment of Farm
Worker Housing
consistent with State law.

The City has not received
any applications to
establish Farm Worker
Housing.

Units Annual Housing Element Report
Program HE
‐

3.H: Larger
Multifamily Units
Encourage housing developers to
construct larger units to provide
housing for larger renter families and to
alleviate existing or future
overcrowding.

Ongoing, as applications
are processed through the
Community Development
Department.
6th Cycle Continuous
City staff continues to
contact housing
developers and promote
construction of all housing
types including larger
family units.

Units3 Annual Housing Element Report
Program HE
‐

3.I:

Assistance for Persons
with Developmental
Disabilities
Implement an outreach program to
assist persons with developmental
disabilities. Ongoing. 6th Cycle Continuous
City staff is developing an
outreach program to
assist persons with
developmental disabilities
that includes developing
an informational brochure
and directing people to
service information on the
City’s website.

Other Annual Housing Element Report
Program HE-3.J: Low
Barrier Navigation Centers
Consider the potential to accommodate
low barrier navigation centers for the
homeless by examining existing
government constraints and barriers.

Ongoing. Assessment is
currently ongoing with the
Land Use Element Update
set for completion by
September 2023.
6th Cycle In Progress
Per AB 101 (2019), review
the City’s zoning
ordinance and make
revisions if necessary to
allow low barrier
navigation centers for the
homeless per Government
Code 65660-65668.

Other Annual Housing Element Report
Program HE
‐

4.A: Housing
Discrimination and
Housing Equal
Opportunity
Prevent housing discrimination and
promote equal housing opportunities. Ongoing. 6th Cycle Continuous City staff will continue to
provide information and
refer persons to the
appropriate agencies as
complaints are received in
an effort to prevent
housing discrimination
and promote equal
housing opportunities.

Other Annual Housing Element Report
Program HE
‐

5.A:

Implementation of
California Energy
Conservation Standards
Promote energy and resource
conservation wherever possible.

Applicants for building permits must
continue to show compliance with the
State’s energy conservation
requirements at the time building plans
are submitted.

Ongoing. 6th Cycle Continuous
City staff continues to
promote energy and
resource conservation
wherever possible.

Applicants for building
permits must continue to
show compliance with the
State’s energy
conservation requirements
at the time building plans
are submitted.

Other Annual Housing Element Report
Program HE
‐

5.B: Green
Building
Contribute to the reduction of
greenhouse gases and climate change
through the use of green building
technologies and materials.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is currently
researching areas
including but not limited to
Zoning Ordinance, specific
plans, and development
agreements as
appropriate, to enforce
state requirements,
including Title 24 of the
California Code of
Regulations, for energy
conservation in new
residential projects.

Other Annual Housing Element Report
Program HE
‐

5.C: Fee
Reduction
Contribute to the reduction of
greenhouse gases and climate change
through the use of green building
technologies and materials.

Ongoing, as projects are
processed through the
Community Development
Department.
6th Cycle Continuous
City staff is continuing to
incentivize applicants who
contribute to the reduction
of greenhouse gases and
climate change through
the use of green building
technologies and
materials through the
reduction in fees and a
streamlined permitting
process.

Units Annual Housing Element Report
2025 HOUSING ELEMENT ANNUAL REPORT

DWELLING UNITS

APN ADDRESS UNIT DESCRIPTION BUILDING
PERMIT #
TYPE
006-052-07 315

BOSCABELLA
ADU CONVERSION 20250153 ADU
006-051-23 221 E VALLEY
ST
NEW
CONST_1BD,1BA ADU
20250122 ADU
006-221-16 409 MAPLE ST ADU CONVERSION 20250100 ADU
005-215-15 170 PEARL ST ADU CONVERSION 20250060 ADU
006-030-14 353 RAYMOND
LN
ADU CONVERSION 20250029 ADU
006-030-21 355 NORTH ST NEW SFD, 2BD 2BA 20250098 SFD

111 E COMMERCIAL STREET, WILLITS CA 95490 • PHONE: 707-459-7112 • FAX: 707-459-1562 • www.https://cityofwillits.org/

CITY OF WILLITS

GENERAL PLAN

ANNUAL PROGRESS REPORT
2025
City of Willits
111 E. Commercial Street
Willits, CA 95490
Table of Contents
Section Page

1. INTRODUCTION ........................................................................................ 3

1.1 GENERAL PLAN UPDATE REQUIREMENTS PER STATE LEGISLATION................................... 4

1.2 GENERAL PLAN ELEMENTS ........................................................................................... 5

2. GENERAL PLAN UPDATES AND IMPLEMENTATION MEASURES ........................ 5

2.1 LAND USE ELEMENT: ................................................................................................... 6

2.2 SAFETY ELEMENT ........................................................................................................ 7

2.3 CIRCULATION ELEMENT............................................................................................... 8

2.4 CONSERVATION AND OPEN SPACE ELEMENT .................................................................. 8

2.5 PUBLIC SERVICES AND FACILITIES, PARKS AND RECREATION ELEMENT ............................. 9

2.6 NOISE ELEMENT........................................................................................................ 11

2.7 ECONOMIC DEVELOPMENT ELEMENT........................................................................... 11

2.8 HOUSING ELEMENT ................................................................................................... 12

3. HOUSING ELEMENT ANNUAL PROGRESS REPORT........................................ 13

3.1 MEETING THE REGIONAL HOUSING NEED..................................................................... 14 TABLES
Table 1 General Plan Elements ……………………………………………………………………………………………………………. 3 Table 2 Future Housing Needs, 2018–2027.......................................................................................... 13 Table 3 Comparison of Regional Growth Need and Residential Sites ................................................. 14

ATTACHMENTS
ATTACHMENT 1: 2024 HOUSING ELEMENT ANNUAL PROGRESS REPORT ............................ 14 2025 Willits General Plan Annual Progress Report
Community Development Department Page 3

CITY OF WILLITS

GENERAL PLAN ANNUAL PROGRESS REPORT
(January 1, 2025, to December 31, 2025)

1. INTRODUCTION
Government Code Section 65400 and 65700 requires that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR). The State does not have a standardized form or content guidance for General Plan APRs, so each municipality may cater the report to their own unique style. The deadline to submit the report each year is April 1. However, there is no penalty for submitting the APR after the deadline.

State law also requires that all cities and counties create an annual progress report that describes the community’s progress toward implementing their Housing Element. This Housing Element Annual Progress Report (HPR) has detailed data requirements, and the State has developed a standardized spreadsheet format for submitting the required data. The HPR also fulfills certain statutory requirements to report other housing information, such as the City’s progress toward meeting its share of regional housing needs, certain rezoning activities, actions taken towards completion of Housing Element programs, and local efforts to remove governmental constraints to the development of housing per Government Code Sections 65584.3(c) and 65584.5(b)(5).

Since its adoption in 1992, the City has worked diligently to implement the policies outlined in the Vision 2020 General Plan and has had many successes over the years. The various departments that comprise the City of Willits have completed many projects and are striving to achieve ongoing objectives and project goals related to each of the General Plan Elements. This report intends to summarize the status of the Willits Vision 2020 General Plan, introduce key development activities and projects that were implemented or completed in the 2024 calendar year, and examine the City’s progress in meeting its share of regional housing needs.

This document is a reporting document and does not create or alter policy. The content is provided for informational purposes only and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306. Upon acceptance by City Council, this APR report will be forwarded to the State to supplement the HPR.
2025 Willits General Plan Annual Progress Report
Community Development Department Page 4

1.1 GENERAL PLAN UPDATE REQUIREMENTS PER STATE LEGISLATION The State has adopted several amendments to Government Code §65302 that has added new statutory requirements to the required Elements of the General Plan or in General Plan APRs as follows:

Senate Bill (SB) 379 – Adopted 2015 : Requires the Safety Element to include a climate change vulnerability assessment, measures to address vulnerability, and comprehensive hazard mitigation and emergency response strategies. Addressing these topics is required upon the next revision of a Local Hazard Mitigation Plan (LHMP) after January 1, 2017, or, if the local jurisdiction has not adopted a LHMP prior to January 1, 2022.

Senate Bill (SB) 1000 – Adopted 2016 : Requires either a separate new Environmental Justice Element or related goals, policies, and objectives integrated into other Elements, if the jurisdiction has a disadvantaged community according to the Office of Environmental Health Hazard Assessment’s CalEnviroScreen tool. . The only disadvantaged community in or near the City of Willits, as defined by State law, is the Sherwood Valley Rancheria. SB 1000 is triggered when local governments adopt or revise two or more General Plan elements concurrently. Upon adoption of the revised Land Use Element (2025) and Safety Element (estimated 2026), the City of Willits may either comply with SB 1000 by developing a stand-alone Environmental Justice Element as part of their General Plan, by adopting environmental justice policies incorporated in other elements throughout the General Plan, or through a hybrid approach that does both.

Senate Bill (SB) 1035 – Adopted 2018 : Amends the timing of updates related to the original bill language in SB 379 (see above). It requires jurisdictions to review and, if necessary, update the Safety Element upon each revision of the Housing Element or LHMP. This should be done at least once every eight years to identify new information not available during the previous revision relating to flood and fire hazards and climate adaptation and resiliency strategies.

Senate Bill (SB) 99 – Adopted 2019 : Requires cities, upon the next revision of the Housing Element on or after January 1, 2020, to review and update the Safety Element to include information identifying residential developments in hazard areas that do not have at least two emergency evacuation routes.

Senate Bill 1425 – Adopted 2022 : Requires the City to update the Open Space Element by Jan. 1, 2026 to include plans and an action program that address specified issues, including climate resilience and other co-benefits of open space, correlated with the Safety Element.

Assembly Bill (AB) 747 – Adopted 2019 : Requires jurisdictions to, after January 1, 2022, review and update the Safety Element of their General Plan as necessary to identify evacuation routes and evaluate their capacity, safety, and viability under a range of emergency scenarios. A jurisdiction that has adopted an LHMP, Emergency Operations Plan (EOP) or other document that fulfills these objectives may summarize and incorporate that document into the Safety Element to comply with AB 747.

Assembly Bill (AB) 168 – Adopted 2020 : Requires new information on the City’s responsibility to consult with California Native American tribes, and to identify and protect, preserve, and mitigate impacts to specified places, features, and objects, pursuant to specified law when adopting or 2025 Willits General Plan Annual Progress Report
Community Development Department Page 5
amending the General Plan or Open Space Element. Most recently, SB 1425 requires every local agency review and update its local Open Space Element by January 1, 2026.

Assembly Bill 1889 – Adopted 2024 : The “Room to Roam Act,” requires cities and counties to consider the effect of development on wildlife movement and habitat connectivity in the adoption or next revision of their general plan Conservation Element beginning on January 1, 2028.

Assembly Bill 2684 – Adopted 2024 : This bill requires a city or county, upon the next update of one or more of the elements included in the general plan on or after January 1, 2028, to review and update its Safety Element as necessary to address the hazard of extreme heat Upon the adoption of any update to an element of the General Plan or a comprehensive General Plan Update, the City of Willits will ensure that each and every statutory requirement is met.

1.2 GENERAL PLAN ELEMENTS
State law requires all cities and counties in California to adopt a General Plan, comprised at minimum of seven mandated “Elements,” that address physical development within its jurisdiction and include: land use, circulation, housing, conservation, open space, noise, and safety. Each of the seven mandatory general plan elements were prepared prior to adoption of the General Plan Guidelines established by the Office of Planning and Research.

Table 1 indicates the date that each of the
elements were last updated in the Willits
Vision 2020 General Plan, and which
elements are currently in the process of an
update.

2. GENERAL PLAN UPDATES AND IMPLEMENTATION MEASURES
Local governments are required to keep their General Plans current and internally consistent. Although General Plans must be kept current, there is no specific requirement that a local government update its General Plan on a particular timeline, with the exception of the Housing Element, which is formally required to be updated every eight years. Between January 1, 2024, and December 31, 2024, the City successfully implemented several initiatives and is undergoing multiple planning projects set for completion in the near future that correspond to specific Elements of the General Plan. Following the adoption of the updated Safety Element, the City plans to perform comprehensive updates to the Zoning Ordinance to accommodate changes made in land use designations and standards contained in the General Plan. This project is anticipated to begin in 2025 and continue throughout 2026.

GENERAL PLAN ELEMENT LAST UPDATE
Land Use 2024
Safety 1992 (update in process)
Circulation 1992
Conservation and Open Space 1992
Noise 1992
Public Services and Facilities 1992
Economic Development 1992
Housing 2019
Table 1. General Plan Elements
2025 Willits General Plan Annual Progress Report
Community Development Department Page 6

2.1 LAND USE ELEMENT:

The Land Use Element sets forth specific goals, objectives, policies, and maps to guide the intensity, location, and distribution of land uses. The Land Use Element Update was adopted on October 23, 2024.

Land Use Element Update and Sphere of Influence Amendment (2024):

Since 2022, the City has been working with consultants Planwest Partners Inc. to assist in comprehensively updating the Land Use Element and amending the Sphere of Influence. The update accommodates current growth projections, addresses current community issues, and meets new statutory requirements relevant to housing needs. The update also includes an amendment to the City’s Sphere of Influence to include hundreds of acres of residentially zoned land bordering existing City boundaries for the purpose of providing new housing opportunities and acknowledging long standing municipal utility service connections. Throughout 2023 and 2024, significant progress was made updating the Land Use Element through various initiatives and engagements. An advisory committee comprising technical experts from City departments, partner agencies, and community members convened four times to provide feedback on project feasibility and direction.

Simultaneously, an online community survey available in both English and Spanish written languages received input from residents of all ages helping to shape policy and provide mapping recommendations used to update the Land Use Element. A community open house event at the Willits Community Center facilitated direct dialogue between stakeholders and City officials, encouraging active participation and information sharing. Complementing these public outreach efforts, a dedicated website served as a centralized hub for project updates, surveys, and informational resources.

Moreover, multiple City Council study sessions were conducted to help facilitate transparency, inform decision-makers, and solicit public input. The City released the Public Draft Land Use Element along with the Draft Environmental Impact Report(EIR) document in mid-2024. The City Council approved the Final EIR and Land Use Element public draft documents on October 23, 2024.

The project was funded through a combination of three grant programs. The three funding sources: Local Early Action Planning Grant (LEAP), Regional Early Action Planning Grant (REAP), and SB2 totaled approximately $260,000. The respective amounts of each funding source and a brief summary of the scope of each grant is provided below.
• Local Early Action Planning (LEAP): $65,000 to update the Land Use Element of the General Plan and complete environmental review pursuant to CEQA.
• Regional Early Action Planning (REAP): $35,364 to supplement the cost of preparing the appropriate CEQA document(s) to support an update to the Land Use Element of the General Plan. An Additional portion of the Mendocino Council of Government’s REAP grant was reallocated to the City of Willits to use as part of the Land Use Element update process.
2025 Willits General Plan Annual Progress Report
Community Development Department Page 7
• SB2: $160,000 to amend the City’s Sphere of Influence boundary to facilitate additional housing opportunities.

The expenditure deadline for the SB2 grant is September 30, 2023, the expenditure deadline for the REAP grant is December 31, 2023, and the deadline for the LEAP grant was extended to December 31, 2024. At this time, the funding for these three grants has been fully utilized and the City has received reimbursement from outside agencies. The project budget is constrained by the total funding of these three grants; however, the City anticipates pursuing additional funding for future project phases beyond the scope of this contract.

As the approved document to amend the Sphere of Influence moves forward for review and processing by the Local Agency Formation Commission (LAFCO), the City anticipates that it may need to revise the proposed amendment per LAFCO instruction. The City plans to perform comprehensive updates to the Zoning Ordinance to accommodate changes made in land use designations and standards contained in the General Plan. This project is anticipated to begin in 2025 and continue throughout 2026.

2.2 SAFETY ELEMENT
The focus of the Safety Element includes identifying safety risks and developing goals, policies, and implementation programs to better address these issues. The Safety Element was last updated in 1992 with the adoption of the Willits General Plan Vision 2020.

Safety Element Update (Ongoing):

A comprehensive update of the Draft Safety Element was released for public review in 2020. The Safety Element, and possibly other elements, may need to be
amended further to be consistent with any applicable changes made to the Land Use Element. The updated Safety Element will meet compliance requirements of SB 379 and AB 2140, and includes a vulnerability assessment pursuant to SB 379, which identifies the risks that climate change poses to the City of Willits including, but not limited to, an assessment of how climate change may affect the risks identified in the Local Hazard Mitigation Plan (LHMP).

Staff intended to bring the Safety Element update forward mid2025, as it will likely require further revisions ensuring compatibility amongst other elements of the General Plan, howeverincreased costs associated with State compliance and budget constraints have extended the timeline to 2026 or later.

The City is seeking grant funds to support completion of the Safety Element Update.

Emergency Operations Plan (Completed in 2024)
The City of Willits Emergency Operations Plan (EOP) Part 1: Basic Plan is a foundational document for emergency management for staff, key partners, and the community. The City Manager serves as the City’s Office of Director of Emergency Services and is responsible for the review, revision, management, and distribution of the EOP annually. The EOP complies with the California Standardized Emergency Management System (SEMS), the National Incident Management System (NIMS), the State Emergency Plan 2025 Willits General Plan Annual Progress Report
Community Development Department Page 8
and the California Emergency Services Act (Gov. Code § 8550 et seq.), and Willits Title 2, Chapter 2.44:

Emergency Services. The EOP was adopted by City Council at the September 11, 2024 Council meeting and has been shared with the Mendocino County Office of Emergency Services.

Flood Emergency Response Plan (Completed in 2024):

Much of Willits lies within Special Flood Hazard Areas (SFHA) as mapped by Federal Emergency Management Agency
(FEMA). In these SFHAs, the risk of flooding is present due to an excess of precipitation runoff and damming of drainage areas during major storm events.

The Flood Emergency Response Plan (FERP) Draft, which was adopted by Council on October 23, 2024, and has now become an annex of the City’s Emergency Operations Plan.

Development of the FERP required extensive planning and collaboration between key staff representatives and various local and regional agencies. The Plan features a Public Safety Map with organized protocols in the event of a flood. Staff and consultants assessed whether there were remaining gaps in the Flood Safety Plan and Public Safety Map to finalize this Plan. Throughout this process, staff and consultants have assessed potential gaps in the Flood Safety Plan and Public Safety Map to comprehensively include protocols and procedures for flood emergencies. The FERP remains a critical initiative aimed at enhancing local flood emergency response and bolstering public safety within the City of Willits.

The drafting of this Plan was funded by a grant awarded by the Department of Water Resources (DWR); by completing these plan updates in October 2024, the City was able to meet the final DWR grant reporting deadline of November 30, 2024.

2.3 CIRCULATION ELEMENT
The purpose of the Circulation Element of the Willits General Plan is to provide for a safe and efficient transportation system for existing and proposed uses within the City. This section addresses the street and highway network, railroads, transit services, and bicycle and pedestrian facilities within the community, in accordance with State Planning Law. The Circulation Plan and supporting goals, policies, and implementation actions are consistent with the land use provisions and standards within the General Plan.

The Circulation Element has not been updated since the adoption of the Willits Vision 2020 General Plan.

The City will likely need to identify grant funding to complete a comprehensive update to the Willits General Plan, including the Circulation Element.

2.4 CONSERVATION AND OPEN SPACE ELEMENT
This component of the General Plan focuses on the conservation and management of Willits’ open-space resources. As recognized in State law, open space serves a multitude of functions including: the preservation of natural resources; the managed production of resources such as agriculture; outdoor recreation; and the protection of public health and safety. 2025 Willits General Plan Annual Progress Report
Community Development Department Page 9
Urban Forest Management Plan:

On November 9, 2022, the Willits City Council
unanimously approved adoption of the Urban Forest
Management Plan (UFMP). The plan, under development
by staff and consultant firm Dudek, lays out goals,
objectives, and actions to achieve and enhance a healthy urban forest over the next 30 to 40 years. The project
involved collecting data on an inventory of approximately 320 City owned trees, and an initiative to plant an
additional 165 trees in City limits. Further, the Technical Assessment document included with the plan provides a
model municipal tree ordinance and a model heritage tree ordinance for potential future action by the City Council.

Four guiding principles of the UFMP help create the framework for the management plan and are as follows:

1. Sufficient Resources for the Urban Forest: “The city will provide the financial and human resources to sustainably manage the urban forest”;

2. A Sustainable and Resilient Urban Forest: “The urban forest will be prepared for changing environmental conditions brought on by climate change”;

3. Expand the Urban Forest: “Canopy cover will be increased above current levels for all residents and stakeholders”; and

4. Protect and Preserve the Urban Forest: “City policies and ordinances will contribute to large, healthy trees on both private and public property.”
Staff plans to continue searching for grant opportunities to plant additional trees in City parks and along sidewalks, actively manage existing trees, and develop tree ordinances identified in the UFMP.

One Ordinance the City intends to adopt in 2026 is a Tree Ordinance, as identified in Implementation Policy

3.360 of the Willits General Plan. Development of a Tree Ordinance is proposed to be funded by the American Rescue Plan Act (ARPA) grant awarded to the City.

2.5 PUBLIC SERVICES AND FACILITIES, PARKS AND RECREATION ELEMENT Willits contains 38.34 acres of existing parks and facilities, including recreational parks, neighborhoods parks, green space, and special use facilities. This Parks and Recreation Element establishes goals and policies that address the long-range provision and maintenance of parks and recreation facilities needed to improve the quality of life of existing and future Willits residents. The City of Willits needs additional recreational lands and facilities, and the policies and implementation measures included in this element are responsive to that demand. The overall focus of the Parks and Recreation Element is on providing recreational opportunities and facilities on a regional scale, including trails and waterways; securing adequate funding sources; and increasing tourism and recreation-based businesses. The element also addresses the location, demand, management, and provision of parks and recreation facilities.

Willits Rail Trail Project (Ongoing):
2025 Willits General Plan Annual Progress Report
Community Development Department Page 10
In May of 2022, City staff completed the environmental review process for the Rail Trail Project and filed the Notice of Determination to the State. The project Design Phase has been finalized and the City has selected a contractor to construct the project. The objective of the Willits Rail Trail project is to provide a safe, accessible path from the southern end of Willits to the northern end, for non-motorized traffic.

The project will construct a 10-foot-wide paved, ADA
accessible, pedestrian and bicycle path, approximately 1.6 miles long, between East Hill Road and East Commercial
Street and within the Great Redwood Trail Agency (GRTA), formerly North Coast Railroad Authority (NCRA) right of way.

The trail will be a segment of the proposed Great Redwood Trail, which is currently planned as a continuous trail spanning from the North Bay to the Eureka area. Key design elements include lighting, fencing, security cameras,
landscaping, tree plantings, irrigation and three pedestrian bridges at creek crossings. This project is identified as a priority project in the City Bicycle and Pedestrian Plan, the County Regional Bikeway Plan, County Active Transportation Plan as well as the County Rail with Trail Corridor Plan. The project is anticipated to near completion sometime in 2027. The City is excited to provide an additional recreational opportunity, and an alternative mode of transportation as a means of improving local air quality, which meets the objective of General Plan Policy 3.290. Project construction is expected to be completed in 2026.

East Commercial Street Corridor Master Plan (Completed in 2024):

After multiple open-house events, Council meetings, and public outreach opportunities in 2022-2023, a draft plan was finalized. On February 28, 2024, City Council formally
accepted the East Commercial Street Corridor Master Plan (ECSCMP) and on October 23, 2024, Council formally
adopted the ECSCMP. This Plan encompasses
transportation, pedestrian, and park improvements
throughout the East Commercial Street Corridor. The Clean California Local Grant Program (CCLGP) grant application was submitted in May 2023, awarded in December 2023, and provides funding for several park and pedestrian
improvements’ construction and installation, as described in the ECSCMP.

Staff and consultants continue to search for opportunities to provide funding for the elements of the ECSCMP that are not currently funded by the CCLGP grant. The City’s team of staff and consultants are currently preparing for a potential grant funding opportunity with the U.S.

Department of Transportation’s Safe Streets and Roads for All (SS4A) funding program. 2025 Willits General Plan Annual Progress Report
Community Development Department Page 11
Willits Main Street Corridor Enhancement Plan:

The Clean California Local Grant Program (CCLGP) grant
applicant was submitted in May 2023, awarded in
December 2023, and provides funding for several
improvements’ construction and installation listed within the Main Street Plan. The items listed in the Plan that are funded by the CCLGP grant are: 1) Solar pedestrian lights, and 2) City Banner located south of the Oak and Main Street intersection. These improvements are anticipated to be
installed in 2026.

Staff and consultants continue to search for opportunities to provide funding for the elements of the Plan that are not currently funded by the CCLGP grant.

2.6 NOISE ELEMENT
This Noise Element identifies and analyzes projected noise conditions in the community and includes measures to abate or mitigate potential noise levels. Noise levels are actively monitored throughout the community by staff, and staff readily address any noise complaints received. Should complaints regarding undesirable noise levels increase significantly, staff will consider implementation of an ordinance providing control of excessive noise-generating activities. The Noise Element has not been updated since the adoption of the Willits Vision 2020 General Plan. The City will likely need to identify grant funding to complete a comprehensive update to the Willits General Plan, including the Noise Element.

2.7 ECONOMIC DEVELOPMENT ELEMENT
This component of the General Plan intends to strengthen community development activities, enhance economic growth, and reinforce the planning process as a positive part of economic development. An improved local business climate which recognizes sub-regional constraints and opportunities, expansion of the local tax base, and enhanced employment opportunities are benefits of a planning effort that has an emphasis on economic development.

Community Development Block Grant) Business Loan Program:

The City of Willits offered business loans funded with Community Development Block Grants (CDBG) from the California Department of Housing and Community Development (HCD). The purpose of these business loans was to provide flexible financing to businesses which, in turn, create or retain jobs. In late 2022, the City awarded thirteen local businesses a total of $470,000 in forgivable loans to provide assistance to mitigate the impacts of the COVID-19 pandemic. All loans were fully forgiven, and CDBG grant closeout was executed in September 2023.

The City plans on pursuing funds through the 2025 CDBG NOFA to provide further economic support to local businesses through a similar forgivable business loan program, with a portion of funds set aside to support establishment of new businesses.
2025 Willits General Plan Annual Progress Report
Community Development Department Page 12
.

California Conservation Corps Willits Campus: The
California Conservation Corps (CCC) Willits Center
began construction in October 2022, after a 2-year
planning and review process with the City of Willits
and State of California. The Project involves
development of a new CCC operations center at 440
East Hill Road in the City of Willits to accommodate
relocation of existing operations at the CCC Ukiah
Center. The 27.7-acre Willits Center site is located
north of East Hill Road, bounded by U.S. Highway 101
Bypass on the east and the former Northwestern
Pacific Railroad corridor. The Project consists of a new CCC residential center that includes a total of
approximately 64,000 square feet (sf) of new building
construction. The Center will include 12 buildings
consisting of an administration building, seven
dormitories, an education building, a recreation
building, a multi-purpose building with kitchen and
dining room, a warehouse with work area and a
hazardous materials storage room. The Project also
includes a paved emergency crew and vehicle staging area and solar photovoltaic array. The facility’s design is based on the prototype and CCC’s residential needs to house 12 Permanent Corpsmembers. The center is intended to be designed to Zero Net Energy (ZNE) per the Governor’s Executive Order (EO) B-18- 12 and achieve at minimum a Leadership in Energy and Environmental Design (LEED) Silver certification.

The facility was completed in Fall 2025 and housing and training functions are being relocated to the Willits facility.

2.8 HOUSING ELEMENT
The Housing Element of the General Plan is a
comprehensive statement by the City of Willits regarding its current and future housing needs and proposed actions to facilitate the provision of housing to meet those needs at all income levels. The policies contained in this element reflect the requirements of the statewide housing priority to allow for the “attainment of decent housing and a
suitable living environment for every Californian,” as well as a reflection of the unique concerns of the community.

The purpose of the Housing Element is therefore to
establish specific goals, policies, and objectives relative to the provision of housing and to adopt an action
(implementation) plan toward this end. In addition, the Housing Element identifies and analyzes housing needs
and resources and constraints to meeting those needs.
2025 Willits General Plan Annual Progress Report
Community Development Department Page 13
The revised draft of the Housing Element was adopted by Willits City Council on December 11, 2019, and meets full compliance with the State Housing Element law (Article 10.6 of the Government Code). The 2019 Housing Element update addresses the City’s housing needs over the 2019–2027 Housing Element planning period. The Housing Element update has been analyzed for consistency with the City’s General Plan and does not propose any goals, policies, or programs that are considered contrary to General Plan goals, policies, or programs. The City’s plan for addressing its identified housing needs focuses on the following areas:
• Housing Quality
• Housing Supply and Neighborhood Conservation
• Housing Affordability
• Equal Housing Opportunity
• Natural Resource and Energy Conservation
Permanent Local Housing Allocation Grant Program (Ongoing):

In December 2022, the City applied to the Permanent Local Housing Allocation grant program to support a City Housing Rehabilitation Program. The Program proposes using PLHA funding to implement an owneroccupied home rehabilitation loan program, offering low or no interest loans to homeowners under 120- percent of the Area Median Income. Generally, the program will provide rehabilitation home loans for activities including but not limited to bringing properties up to current code standards, implementing accessibility upgrades, repair or replacement of major systems such as HVAC or plumbing, abatement of asbestos or lead paint, fixing roof, siding, foundations or other activities which will prevent deterioration, extend the lifespan of the dwelling, and support homeowner affordability. The City received $371,856 in June 2023 to support this revolving loan Program. The City has successfully created the City Housing Rehabilitation Program and completed the first round of loans. The City understands that an additional estimated $173,000 in PLHA funds will become available over the next year to further support the revolving loan program and the City’s goal to preserve its housing stock.

3. HOUSING ELEMENT ANNUAL PROGRESS REPORT
The Regional Housing Needs Plan (RHNP) is mandated by the State of California (Government Code Section 65584) and requires regions to address housing issues and needs based on future growth projections for the area. The California Department of Housing and Community Development (HCD) allocates regional housing needs numbers to regional councils of governments throughout the state. The RHNP for Mendocino County is facilitated by the Mendocino Council of Governments (MCOG) and allocates to the Cities of Ukiah, Fort Bragg, Willits, and Point Arena and the unincorporated area of Mendocino County their “fair share” of the region’s projected housing needs, also known as the Regional Housing Needs Allocation (RHNA). Table 1 lists the breakdown of the RHNA for the City of Willits, by income group, for the 2018–2027 period.

Table 1 Future Housing Needs, 2018–2027
INCOME CATEGORY 2018-2027 RHNA
Extremely Low 17 15%
Very Low 17 15%
Low 25 23%
Moderate 17 15%
2025 Willits General Plan Annual Progress Report
Community Development Department Page 14
Above Moderate 35 31%
Total 111 100%
In addition to tracking building permits issued, the City also monitors the number of housing entitlements approved.

Accessory Dwelling Units:

In September 2018, the City Council adopted an Accessory Dwelling Unit (ADU) ordinance to align with state law at that time. Since then, the State has enacted multiple rounds of ADU legislation, including major updates in late 2019, that streamlined requirements, expanded development opportunities, and restricted the extent to which local jurisdictions may regulate ADUs. State ADU laws have continued to evolve almost every year since the City’s last ordinance update.

While the City currently reviews ADU applications in accordance with the latest State requirements, the zoning code is now being amended to formally incorporate legislative changes.

Senate Bill 9:

Senate Bill (SB) 9 (Atkins) was signed into law by Governor Newsom on September 16, 2021, and became effective January 1, 2022. It allows a single-family zoned parcel (including single-family Planned Unit Developments) to be subdivided into two parcels and two residences to be constructed on each parcel and to be approved ministerially if certain requirements are met. Staff has created an application for SB 9 urban lot splits and promoted the opportunity within the community. Staff has processed 1 Urban Lot Split application since SB 9 was enacted.

3.1 MEETING THE REGIONAL HOUSING NEED
Table 2 compares the City of Willits’ RHNA to the site inventory capacity. After including the credit of housing units constructed between January 2018 and December 2023, the City has a surplus of available land to support housing units of all income groups as shown in Table 3 below.

Table 2 Comparison of Regional Growth Need and Residential Sites INCOME GROUP 2018-2027
RHNA
Units Permitted
(1/1/2018 – present)
Remaining
RHNA
Vacant
Inventory
Capacity
RHNA Surplus
Extremely Low 17 0
34 Very Low 17 0 318 259
Low 25 4 21
Moderate 17 22 0 352 335
Above Moderate 35 12 23 62 27
Total 111 38 78 732 621
Provided in Attachment 1 is the 2025 Housing Element Report to be submitted to the California Department of Housing and Community Development (HCD).
2025 Willits General Plan Annual Progress Report
Community Development Department Page 15
ATTACHMENT A: 2025 Housing Element Annual Progress Report ATTACHMENT B: 2025 Housing Element Report Summary
Resolution No. 2026- January 14, 2026
RESOLUTION NO. 2026-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS TO APPROVE THE 2024 GENERAL PLAN ANNUAL PROGRESS REPORT AND 2025 HOUSING ELEMENT ANNUAL

PROGRESS REPORT,
WHEREAS, Government Code Section 65400 and 65700 mandates that all cities and counties submit an annual report on the status of the General Plan and progress on its implementation to their legislative bodies, known as a General Plan Annual Progress Report (APR); and
WHEREAS, the General Plan Annual Progress Report intends to summarize the status of the Willits General Plan, introduce key development activities and projects that were implemented or completed in the 2025 Calendar year, and examine the City’s progress in meeting its share of regional housing needs; and
WHEREAS, the 2025 General Plan Annual Progress Report includes reporting for progress pertaining to the City’s Housing Element; and
WHEREAS, the State of California Housing and Community Development Department (HCD) requires municipalities submit information that allows HCD to track any impediments to the construction of new housing that may exist and to monitor progress toward satisfaction of statewide housing needs and goals; and
WHEREAS, this 2025 General Plan Annual Progress Report will be submitted with the Housing Element Progress Report for state agency review after receiving Council approval.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Willits approves the 2025 General Plan Annual Progress Report and 2025 Housing Element Annual Progress Report, and hereby authorizes the Community Development Director, or his/her designee, to submit these Annual Progress Reports for state agency review.

PASSED, APPROVED AND ADOPTED, this 14th day of January, 2026.

THE CITY OF WILLITS
______________________________
TOM ALLMAN, Mayor
ATTEST:

Resolution No. 2026- January 14, 2026
I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 14th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:
______________________________
DELORES PEDERSEN, City Clerk
Item No. 9a
Meeting Date: Jan 28, 2026

AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Dusty Duley, Community Development Director
Agenda Title: PUBLIC HEARING TO DISCUSS FUTURE APPLICATIONS FOR FUNDING UNDER THE

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND CONSIDER ADOPTION OF A RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION IN RESPONSE TO THE 2025 CDBG NOTICE

OF FUNDING AVAILABILITY
Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 30 minutes.

Summary of Request: Adopt a resolution authorizing staff to prepare and submit an application in response to the 2025 Community Development Block Grant (CDBG) program Notice of Funding Availability (NOFA). Application would include the following 3 requests for funds:

Business Assistance Forgivable Loan Program - $1,500,000 Willits Grange roof repair and ADA improvements - $850,000 MCHC medical campus planning and design - $300,000
Background: The CDBG Program is designed to assist rural cities and counties in improving economic opportunities and meeting community revitalization needs. The CDBG program has been funded through the State since 1982 by the US Department of Housing and Urban Development (HUD) under the Housing and Community Development Act 1974, as amended (Title I). The CDBG program's primary objective is to develop viable communities by assisting in the provision of decent housing and quality living environments and expanding economic opportunities for persons of low and moderate-income. Only cities with populations under 50,000 and counties with populations under 200,000 are eligible for non-entitlement CDBG funds.

CDBG funds are provided as grants to non-entitlement jurisdictions and cannot be used to supplant general fund dollars. HUD envisions CDBG funds to be used as gap financing to add the final necessary funds for a project to be successful. Grants vary based on annual allocations and activity limits.

CDBG Project Criteria: Every project, program, or activity, including Program Income projects, that receives CDBG funds through HCD must meet two criteria: the project must meet a national objective and it must also be an eligible activity.
• National objective: benefit to low-to moderate income persons, elimination of blight, urgent need. • Eligible activities: acquisition of real property, public facilities and improvements, code enforcement, clearance, rehabilitation, reconstruction and construction of buildings, architectural barrier removal, loss of rental income, disposition of real property, public services, payment of non-federal share, relocation, planning and capacity building, program administration, economic assistance to for profit businesses, housing services, microenterprise assistance, homeownership assistance, lead based paint hazard evaluation and reduction.

Any activity not explicitly authorized under CDBG statute or regulations is ineligible for CDBG funds. In addition, the statute specifically stipulates that the following activities may not be assisted with CDBG funds:
• Buildings for the general conduct of government, except to create accessibility for disabled population (e.g., city hall),
• General government expenses,
• Political activities,
• Purchase of equipment or furnishings for a property: this excludes certain types of manufacturing equipment connected with economic development activities and the purchase of fire trucks as firefighting equipment, • New housing construction and income payments (income payments are defined as direct payments to subsidize rent and/or utilities),
• Operating and maintenance expenses for public facilities, improvements, and services, • Lobbying activities.

Funding Cycles: The Community Development and Economic Development Allocations of the CDBG program publish a combined NOFA each program year. The 2025 NOFA is provided as Attachment A. For the 2025 CDBG funding cycle, eligible cities and counties may submit up to three sub applications not to exceed $3,600,000. Economic Development or Housing programs or projects applications could not exceed $1,500,000 each. Eligible activities under the above allocations in the NOFA may consist of planning and technical assistance, (studies and strategies), public assistance programs, employment training, public facility improvements, and economic development programs or projects that create or retain jobs.

Program and Project Discussion: Staff have met numerous business owners and are aware that many of our local businesses are struggling financially. Requests have been received by the business community to seek funding to reestablish a business loan program, like the City program established in 2021, whereby the City allocated $470,000 in grant funds to local businesses. A total of 13 businesses received loans ranging between $30,000 and $40,000 to support eligible expenses such as payroll, purchasing inventory and equipment, debt payment, and marketing All businesses met the job retention requirements pursuant to funding requirements and all loans were forgiven. Staff is requesting permission to request $1,500,000 in CDBG funding to establish a similar business loan program. Draft Business Loan Guidelines are found as Attachment B.

Staff has also received a request from Little Lake Grange to use CDBG funds to replace the Grange’s roof and complete ADA improvements. Given that the Grange is a non-profit organization that leases space to other nonprofits, supports start-up businesses, and hosts many community fundraising events for other non-profits, an application to seek funds for a new roof is expected to be competitive request of CDBG funds. Staff is seeking Council approval to request $1,000,000 to support improvement to the Grange.

The City previously submitted a grant under the 2024 CDBG NOFA on behalf of Mendocino Community Health Clinic (MCHC) to complete project planning, including architectural and design drawings and construction plans for their new medical campus. MCHC was gifted a three-acre parcel of land, formerly the location of the old Howard Hospital.

According to MCHC, they are planning to build facilities that will provide integrated health services, including primary care, pediatrics, behavioral health, dental, and women’s health. Additional services will be offered based on community feedback. At capacity, MCHC will hire 45 new employees to serve patients at this site. Staff is requesting $300,000 on behalf of MCHC and Council approval to enter into a subrecipient agreement with MCHC should funding be awarded.
• Attachment A – 2025 CDBG NOFA
• Attachment B – Draft Business Assistance Loan Program Guidelines Recommended Action: 1) Conduct a public hearing and receive public input; 2) Adopt a resolution authorizing the submittal of a CDBG application to fund a City business loan program, improvements to the Willits grange, and planning funds to support the MCHC medical campus; 3) authorize the City Manager or his/her designee to execute all related documents; and 4) approve corresponding budget amendments if the application is awarded.

Alternative(s): None recommended.

Fiscal Impact: CDBG funds can be used to reimburse staff time required to administer the grant as well as consultant support services. Funds were previously budgeted to support application development.

Personnel Impact: Staff time would be required to administer the grant funds and associated programs if applications are awarded. Alternatively, the City could use grant funds to retain a third-party consultant to administer the grant funds and programs.

Identified City Council Conflict of Interest: None
2021 Adopted Goals: The Program is consistent with the adopted City Council Goal to Identify funding through the Cares Act and other sources to be used for the development of a business support program.

California Environmental Quality Act: The submission of application for CDBG funds does not constitute a project under the California Environmental Quality Act. (PRC, §§ 21065, 21080). Any individual projects will require future environmental review.

This Item Relates to the following General Plan Element : N/A Land Use Circulation Conservation and Open Space Noise Housing Public Services and Facilities, Parks and Recreation Economic Development
Reviewed by: Interim City Manager City Attorney City Clerk Finance Director Human Resources Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
September 30, 2025
MEMORANDUM FOR: All Potential Applicants
FROM: Jenny Cho, Deputy Director
Division of Federal Financial Assistance
SUBJECT: 2025 Community Development Block Grant Program Notice of Funding Availability
The California Department of Housing and Community Development (Department) is announcing the release of the 2025 Notice of Funding Availability (NOFA) for approximately $27 million in federal funds for the Community Development Block Grant (CDBG) program. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis.

Funding for this NOFA is available to the state from the United States Department of Housing and Urban Development (HUD), pursuant to the Housing and Community Development Act of 1974, as amended, and 24 Code of Federal Regulation (C.F.R.) Part 570 Subpart I “State Community Development Block Grant Program.” These regulations require the state to make funds available to the state’s non-entitlement Units of General Local Government (UGLGs). Units of General Local Government are defined by HUD as political subdivisions of the state, which in California are towns, cities, and counties. Only non-federally recognized Tribes can receive funding through applications submitted by non-entitlement Units of General Local Government. No direct funding from the Department can be provided to Tribes, Tribally-Designated Housing Entities, or nonprofits.

Applicants are encouraged to set-up profiles in the eCivis Portal at eCivis Portal | Login as early as possible. Profile set-up instructions and other technical assistance can be found in the eCivis Grants Network External User Manual found on the Department’s CDBG webpage under the “Resources” tab.

Applicants are encouraged to begin the application process early to ensure successful submission before the application deadline. If you have issues logging STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
into the portal or have questions on how to complete the online application, please contact the Department at [email protected].

To receive CDBG program NOFA FAQs, emails, and other information and updates, please sign up for emails and check the “Federal Programs” box. If you have any questions, please submit them to [email protected].

All activities and proposed funding in this NOFA are subject to availability of funds and continuing HUD and legislative and fiscal authority.

Attachments
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
Community Development Block Grant Program
2025 Notice of Funding Availability
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development Division of Financial Assistance, Federal Programs Branch, Community Development Block Grant Program
651 Bannon Street, 8th Floor, Sacramento, CA 95811
Email: [email protected]
September 30, 2025
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
Table of Contents
Table of Contents............................................................................................................ 2 I. Overview .................................................................................................................. 5 A. Notice of Funding Availability ...................................................................... 5 B. Estimated Timeline...................................................................................... 5 C. Insufficient Demand .................................................................................... 6 D. What’s new in this NOFA?........................................................................... 6 E. Authorizing Legislation ................................................................................ 7 II. Allocation and Funding ............................................................................................. 8 A. Definitions ................................................................................................... 9 B. Limits for Administration and Planning ........................................................ 9 C. Conditions ................................................................................................. 10 III. Program Requirements .......................................................................................... 10 A. Eligible Applicants..................................................................................... 10 B. Non-Entitlement Status ............................................................................. 11 C. Housing Element Compliance................................................................... 11 D. Growth Control Limitations ........................................................................ 12 E. Eligible Activities ....................................................................................... 12 F. Application Limits ...................................................................................... 12 G. Activity Limits ............................................................................................ 14 H. Additional Requirements ........................................................................... 14 IV. Application Requirements....................................................................................... 15 A. National Objectives ................................................................................... 15 B. Milestones................................................................................................. 15 C. Public Participation.................................................................................... 17 V. Application Threshold and Initial Requirements ..................................................... 17 A. Single Audit............................................................................................... 17 B. Site Control ............................................................................................... 17 C. Statement of Assurances (Appendix D) .................................................... 18 D. Resolution ................................................................................................. 19 E. TIN ............................................................................................................ 20 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 3
F. Budget....................................................................................................... 20 G. Sources and Uses Chart ........................................................................... 20 H. System for Award Management (SAM)..................................................... 20 I. State Objectives........................................................................................ 21 J. National Environmental Policy Act of 1969 (NEPA) .................................. 21 K. Construction Projects ................................................................................ 22 L. Economic Development (ED) Programs Only ........................................... 22 M. Planning Related to Another Activity Only................................................. 23 N. 50 Percent Rule ........................................................................................ 24 VI. Application and Activity Requirements ................................................................... 25 A. Federal Cross-Cutting Requirements........................................................ 25 B. Application Verification.............................................................................. 25 C. Timely Submittal........................................................................................ 25 D. Gap Funding/“But-For”.............................................................................. 25 E. Good Standing .......................................................................................... 26 F. Homelessness Assistance ........................................................................ 26 G. Readiness ................................................................................................. 26 H. Waivers ..................................................................................................... 27 VII. Application Submission .......................................................................................... 27 A. Workshops ................................................................................................ 27 B. Submission Process.................................................................................. 27 C. Application Submission ............................................................................. 28 D. Applicant Responsibility ............................................................................ 29 E. Disclosure of Application........................................................................... 29 VIII.Application Review ................................................................................................. 29 A. Review Process ........................................................................................ 30 B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years .................................................................................................................. 30 C. Scoring...................................................................................................... 30 D. Corrections................................................................................................ 30 IX. Appeal Criteria and Process................................................................................... 31 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 4
A. Competitive Application Appeals............................................................... 31 X. Award Recommendations ...................................................................................... 32 XI. Awards Announcement and Grant Implementation ................................................ 32 A. Awards Announcements ........................................................................... 32 B. Standard Agreements ............................................................................... 32 XII. Federal Program Requirements ............................................................................. 33 A. Federal Cross-Cutting Requirements........................................................ 33 B. Relocation Plan Requirements.................................................................. 34 C. Procurement Requirements ...................................................................... 34 D. False, Fictitious or Fraudulent Claims ....................................................... 35 E. Whistleblower Protection Acts................................................................... 36 F. The California Whistleblower Protection Act ............................................. 37 XIII.LIST OF APPENDICES.......................................................................................... 39 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 5
I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) announces the availability of approximately $27 million in funding available through the federal Small Cities Community Development Block Grant Program (CDBG) for the 2025 funding year. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis.

The objectives of the CDBG program are to develop viable communities by the provision of decent affordable housing, a suitable living environment, and to expand economic opportunities, principally for the benefit of Low- and Moderate-Income (LMI) persons, families, households, and neighborhoods.

All applications will be reviewed for completeness and compliance with state and federal requirements. Only complete and compliant applications will be eligible for application review, approval, and potential funding per 42 United States Code (U.S.C.) §5302(a), 24 Code of Federal Regulations (C.F.R.) Part 570, and the State CDBG Guidelines. All awards made and standard agreements entered into under this NOFA will be subject to the provisions in the Department’s grant agreement(s) with HUD and all applicable federal law.

B. Estimated Timeline
CDBG NOFA Releases September 30, 2025
Submission Portal Opening
Date December 1, 2025, at 9AM PST
Application Deadline January 30, 2026, at 3PM PST
Award Letters Signed July 2026
Standard Agreement
Execution On a rolling basis starting August 2026
Expenditure Deadline 2 years, 9 months from Standard
Agreement execution by the Department
Applications submitted before the application open date or after the respective California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 6
closing date or deadline will not be accepted. There will be no exceptions. The Department recommends Applicants plan to submit their application(s) well before the application deadline to provide opportunity for troubleshooting if needed.

Each application will be digitally time-stamped upon submittal. The digital time-stamp shall be conclusive proof of the filing date and time for the application being filed.

C. Insufficient Demand
If any identified set-aside is undersubscribed, set-aside funds shall be made available under the allocation for “Housing Programs, Economic Development Programs, and All Projects.” If this NOFA is undersubscribed, unawarded funds may be made available under a subsequent NOFA. If funds become disencumbered or additional funding resources become available, the additional available funds may be made available under this NOFA or any subsequent NOFAs, at the Department’s discretion. If disencumbered funds or additional available funds exceed applications, these funds may be made available under a subsequent NOFA.

D. What’s new in this NOFA?

1. A set-aside for applicants who haven’t been awarded CDBG funds in the past five NOFA cycles (2020-2024) has been established. Applicants will be allowed to rank from 1 to 3 their priority among planning, public service, project, or program. The highest prioritized qualifying selection will compete in the setaside. Additional applied for planning, public service, project or program will compete with all other applicants.

2. All applications will be eligible under a Competitive Application process, with certain submissions competing under defined set-asides. There is no Over-theCounter (OTC) Application. i) The following activity types are available:
a.Public Service and Planning
b.Programs
• Housing Programs
• Economic Development Programs (ED Programs)
c. Projects
• Public Facilities Projects
• Infrastructure Projects
• Housing Projects
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 7

3. All applications must meet the 50 Percent Rule as described in the CDBG Program Guidelines Section 202(a)(2), 50 Percent Rule.

4. Scoring system has been updated.

5. General updates for clearer instructions and definitions have been made.

E. Authorizing Legislation
Funding under this NOFA is made available pursuant to the Housing and Community Development Act of 1974. This NOFA should be read in conjunction with the following statutes, regulations, and guidelines that establish state and federal CDBG requirements. Relevant legal authorities include, but are not limited to, the following, as the same may be amended from time to time:
• 24 C.F.R. §570.480, et. seq., Federal CDBG Regulations • 24 C.F.R. Part 58, Environmental Review Procedures
• 2 C.F.R. Part 200, Uniform Grant Administration Requirements • Health & Safety Code (H.S.C.) §§50825-50834, State of California CDBG program
• CDBG Final Program Guidelines
• CDBG Grants Management Manual (CDBG GMM)
• 2025-2029 State of California Consolidated Plan
If there are changes to federal or state statutes, regulations, guidelines, or other laws governing the CDBG program, or if funding is modified or eliminated by Congress, HUD, the federal government, the Department, or the state Legislature, these changes may become effective immediately and apply to activities and funding under this NOFA.

Note: The Housing and Community Development Act of 1974 (HCDA) is codified as Title 42 U.S.C. §5301, et. seq. thus, those citations are interchangeable and cite the same statute language. For example, the citation of HCDA 105(a)(22) and 42 U.S.C. §5305(a)(22) are references to the same statute language. For the purposes of this NOFA, we will use the 42 U.S.C. §5301 citations for references to the federal statutes.

In administering this NOFA, if there is a conflict between the federal statutes or regulations and state statutes or guidelines, the federal statutes and regulations shall prevail. All activities in this NOFA are subject to availability of funds and continuing federal, HUD and California legislative and fiscal authority. The Department reserves the right, at its sole discretion and at any time, to rescind, suspend or amend this NOFA and any or all its provisions and the availability or amount of any funding described herein.

The Department will notify interested parties through listserv emails and by posting California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 8
notification on the Department website if the Department rescinds, suspends, or amends this NOFA. This NOFA is not a commitment of funds to any Activity or Applicant.

II. Allocation and Funding
Funds will be allocated in accordance with federal regulations found in 24 C.F.R. §570 and state statute, as found in H.S.C. §50827 et. seq. For more information, please reference the CDBG Guidelines, Section 200.

The table below include the estimated percentage of Funding Category Allocations for the 2025 NOFA:

Funding Category Allocation Percentage Estimated Dollar Amount Local Administration 7% $2,000,000.00
Public Service (24 C.F.R.
570.201(e)(1))
Planning (24 C.F.R. 570.483(b)(5))
≤15%
≤10%
$4,400,000.00
$2,900,000.00
Housing Programs, Economic
Development Programs, and All
Projects
34% $9,250,000
Set-aside for applicants who have
not been awarded CDBG funds in the
last 5 NOFA cycles (2020-2024)
(Limit one public service, planning,
program or project per applicant)
≤25% of total
NOFA
amount; to
fund a
maximum of 4
total awards,
whichever is
the lesser
amount
Up to $6,750,000.00
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 9
Colonias Set-Aside (Section 916 of
the National Affordable Housing Act)
Set-aside of
5% $1,480,000.00
Non-federally recognized Tribes SetAside (H.S.C. §50831)Set-aside of

1.25% $371,000.00
*Note: The amount of total funding available and the allocations of those funds are only estimates and are subject to change without notice.

A. Definitions
Except as otherwise defined herein, all defined terms have the meaning set forth in 42 U.S.C. §5302(a), 24 C.F.R. Part 570, and the State CDBG Guidelines.

B. Limits for Administration and Planning

1. Program Administration
The Department can use 3 percent of the total funding +$100,000 for administration costs.

2. General Administration (GA)
i) Applicants may request up to 7 percent of the total CDBG grant funding requested by that Applicant for General Administration (GA). For detailed information regarding General Administration costs, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website. ii) The calculation to determine the maximum allowable General Administration amount is the amount of Activity expenses plus Activity Delivery expenses, multiplied by 7 percent per application. Appendix G has been provided for ease of calculation.
iii) In general, there should be minimal GA costs. Staff time and/or work completed/costs incurred directly on a specific Activity should be reported as Activity Delivery Cost (ADC) whereas the overall management of the CDBG Program, such as NOFA webinars and Office Hours, should be reported as GA.
iv) For detailed information regarding ADC, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 10
v) GA should be requested in the Main Application for the aggregate amount of all Sub Applications.

3. GA for Program Income (PI) funds is 17 percent of the annual PI receipts for the most recently completed Department Program Year (e.g., for PY 2023, receipts PY 2022 (July 1, 2022 – June 30, 2023).

4. Applicants may elect to assign more funds to Activity costs and take less than the 7 percent (17 percent for Program Income) as their GA allocation.

5. For project budgets with both grant award and PI as funding sources, applications must identify how much GA will be from each source to ensure that GA stays within the appropriate program caps.

C. Conditions
Applicants and awardees acknowledge that the funding opportunities referenced in this NOFA, and all obligations of the Department herein, are expressly subject to and conditioned upon the ongoing availability of funds, as well as the continued federal and state authority of the Department to operate the CDBG program. In the event that funds are not available or the amount thereof is reduced or restricted, or the Department’s authority under the CDBG Program or Act, or such funding or authority to operate is in any way restricted, the Department shall have the option, at its sole and absolute discretion, to amend, rescind, suspend, or terminate this NOFA and any associated funding pursuant to the provision set forth immediately above.

This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.

III. Program Requirements
All Program Requirements, Application Requirements, Application Threshold and Initial Requirements, and Application and Activity Requirements set forth in Sections III-VI must be met. Failure to timely satisfy all of the requirements will result in disqualification.

A. Eligible Applicants

1. Only non-entitlement Units of General Local Government such as cities, counties and municipalities are eligible to apply. Federally-recognized Tribes, non-federally recognized Tribes, and nonprofits may receive assistance only by entering into a subrecipient agreement*, a Memorandum of Understanding, or a contract with an eligible Applicant.
*A subrecipient agreement is a written agreement in effect for each subrecipient before giving out any CDBG funds and remaining in effect for the period during which a subrecipient has control over any CDBG funds, including Program California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 11
Income. At a minimum, a subrecipient agreement must contain content required by the federal CDBG regulations at 24 C.F.R. §570.503.

2. Applicants must meet one or more of the following requirements when the application is submitted to be eligible to apply for funding under this NOFA:
i) An eligible Applicant may apply on its own behalf.
ii) An eligible Applicant may apply on behalf of one or more other eligible Applicants.
iii) Two or more eligible Applicants, which share an activity, may submit a joint application.
iv) An eligible Applicant may apply on behalf of an eligible subrecipient including a Federally- recognized Tribe, non-federally recognized Tribe, or nonprofit. v) In addition to activity and application limits identified in this NOFA, an eligible Applicant may apply for activities in service areas within or outside of the Applicant’s Jurisdiction when the Applicant is applying for funds set aside by the California State Legislative for non-federally recognized Tribes (H.S.C. §50831) and/or Colonias.

B. Non-Entitlement Status
CDBG program funds are provided as grants to Non-Entitlement Units of General Local Government (UGLGs). These UGLGs are encouraged to partner with federally- and non-federally recognized Tribes, districts, agencies, nonprofit service providers, and other community organizations, whenever appropriate, to prepare and submit applications for CDBG funding, and to administer and complete CDBGfunded programs and projects.

Incorporated cities located in an urban county as defined by 42 U.S.C. §5302 (a)(6) must formally elect to be excluded from participation in the urban county entitlement status. HUD and the Department must be notified that the city has elected to be excluded from the urban county participation as per 24 C.F.R. 570.307(g) for it to be eligible for the state CDBG program. Only eligible activities from eligible Applicants will be considered for an award.

Applications for eligible activities outside the Applicant's Jurisdiction must include a legally binding agreement, acceptable to the Department, with the city or county in which the eligible Activity is located. Applicants may not apply to both the State CDBG program and to a CDBG program administered by an Urban County or other entitlement entity during the same program year.

C. Housing Element Compliance
As per H.S.C. §50829, the Applicant must, at a minimum, submit a draft or adopted California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 12
housing element to the Department in accordance with the requirements listed in Government Code (G.C.) §65580, et seq., and G.C. §65585 (see Appendix B) prior to an application submission. Jurisdictions that fail to complete the Housing Element process in a timely manner will be ineligible for funding until the Housing Element meets requirements pursuant to H.S.C. 50829 – 50830. Per CDBG Guidelines, Section 202(a)(4), by the time of award funding, the Applicant must have complied with all the Housing Element requirements listed in H.S.C. 50829 – 50830. The jurisdiction’s Housing Element must be in compliance with CDBG requirements by the deadline listed on the jurisdiction's Application Correction Letter to be considered for award. If a jurisdiction’s Housing Element is determined by the Department to not be in compliance with CDBG requirements by the deadline listed on the Application Correction Letter, the Department has full discretion to determine whether the application will continue to be processed for a potential award.

D. Growth Control Limitations
Applicants that have adopted growth controls, including, but not limited to, restrictions on residential building permits and residential buildable lots, that do not meet the exception criteria in H.S.C. §50830 (b) and (c) are ineligible or deprioritized for funding as per H.S.C. §50830 (see Appendix B). Applicants intending to apply for CDBG funds are required to submit a signed 2025 CDBG Application Certifications and Statement of Assurances form that certifies the Applicant has not adopted any residential growth controls or adopted residential growth controls meet the applicable exception criteria. Failure to submit an executed Application Certifications and Statement of Assurances at the time of application will result in Applicant ineligibility.

E. Eligible Activities
For a complete list of eligible activities allowed under the HCDA, go to 42 U.S.C. §5305 and Chapter 2 of the current version of the CDBG GMM which is found on the CDBG page of the Department’s website. For a list of eligible activities allowed under this NOFA, go to: IDIS CDBG Matrix Code/National Objective Table (ca.gov).

Pursuant to both federal and state laws all CDBG costs must:

1. be eligible;

2. be necessary;

3. be reasonable;

4. not be used to supplant local or state resources; and

5. be guarded against fraud.

F. Application Limits
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 13

1. Each Jurisdiction may submit up to three (3) applications during this NOFA cycle.
i) 1 Project + 1 Program + 1 Public Service or Planning -ORii) 1 Project + 2 Public Service or Planning -ORiii) 1 Program + 2 Public Service or Planning **Note: 2 Projects, 2 Programs, 3 Public Service, or 3 Planning applications are NOT allowed.

2. The two (2) Public Service or Planning applications may be 2 Public Service, 2 Planning, or 1 Public Service and 1 Planning application.

3. Jurisdictions may not apply for more than the aggregate amount of $3.6 million in grant funds regardless of the number of applications submitted. Program Income amounts do not apply towards this limit.

4. The maximum combined award amount per jurisdiction for all awarded applications is $3.6 million in grant funds. Each activity must have a unique Sub Application with a complete budget, National Objective, scope of work, and milestone timeline. Failure to timely submit the Main or Sub Application will result in immediate disqualification.

5. The Main Application’s Budget will need to breakdown the total amount requested in each Sub Application by Sub Application title.

6. Applicants are encouraged to review the sample draft Standard Agreement in Appendix K as a sample of the applicable terms and conditions required for CDBG-funded activities. The final form of the Standard Agreement may vary.

7. The $3.6 million per jurisdiction limits do not apply to Colonias and Native American set-asides. The maximum activity limits are listed below. Program Income (PI) included in an activity budget does not count against the Jurisdiction’s maximum award limit.

Applicants eligible for the set-aside who haven’t been awarded CDBG funds in the last five NOFA cycles (2020-2024) are subject to the same limitations in the number and dollar amount as all other applicants, but may rank from 1 to 3 their priority among planning, public service, project or program. The highest prioritized qualifying selection will compete in the set-aside. Additional applied for planning, public service, project or programs will compete with all other applicants.

8. If applying with another jurisdiction, the application will count as a submission for the lead jurisdiction only.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 14
G. Activity Limits

1. Public Service – up to $300,000

2. Planning – up to $300,000

3. Projects – up to $3.3 million

4. Programs – up to $1.5 million
i) Housing Program application may include any of the following activities. Each activity must have its own Sub Application.
• 13A – Housing Counseling
• 13B – Single Family (1 - 4 units) Homeownership Assistance • 14A – Single Family (1 - 4 units) Housing Rehabilitation • 14F – Single Family (1 - 4 units) Energy Efficiency Improvements • 15 – Code Enforcement
ii) An Economic Development Program may include any of the following activities.

Each activity must have its own Sub Application.
• 18A – Economic Development Direct Financial Assistance to ForProfit Business • 18B – Economic Development Technical Assistance
• 18C – Economic Development: Microenterprise Assistance H. Additional Requirements

1. Americans with Disabilities Act and Physical Accessibility Requirements i) The Grantee shall ensure compliance with all applicable state and federal building codes and accessibility laws and standards. All developments shall adhere to the accessibility requirements set forth in: (i) California Building Code Chapters 11A and 11B; (ii) the federal Fair Housing Act (42 U.S.C. § 3601 et seq.) and its regulations at 24 C.F.R. Part 100 (particularly 24 C.F.R. 100.205), and its design and construction requirements, including ANSI A117.1-1986, and the Fair Housing Accessibility Guidelines, March 6, 1991, in conjunction with the Supplement to Notice of Fair Housing Accessibility Guidelines: Questions and Answers About the Guidelines, June 28, 1994; and (iii) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its Title II and Title III regulations at 28 C.F.R. Parts 35 and 36; and Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and the implementing HUD regulations at 24 C.F.R. Part 8.

2. Construction Standards/Requirements
ii) All residential construction Projects, where applicable, must comply with the housing construction codes of the State of California. All units must meet these California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 15
codes as well as any locally adopted codes and ordinances. Housing construction codes for building in California follow federal and state laws, regulations, and adaptions for construction of single family and multifamily units.

The State Housing Law Program within the Department continuously refines the building standards to ensure they comply with new or changing laws and regulations and develops statewide building standards for new construction of all building types and accessories. The State Housing Law Program also develops the building standards necessary to provide accessibility in the design and construction of all housing other than publicly funded housing. The building standards are published as the California Building Standards Code under the California Code of Regulations, Title 24, and construction standards in the Standard Agreement must meet or exceed all applicable requirements for housing or building construction. Tribal Entities with Projects on Native American Lands are required to follow their own tribal building codes or the International Building Code.

3. Upon request of the Department, Applicants must demonstrate to the satisfaction of the Department that it is compliant with the financial management requirements of 2 C.F.R. Part 200.

IV. Application Requirements
A. National Objectives
CDBG-funded activities must meet the following National Objective:
• Benefit LMI persons
At least 70 percent of the funds awarded must benefit LMI individuals or households.

No activity or portion of a program assisted by these funds may exclude from its benefits the lowest income-eligible group. Individual activities must meet the Low- to Moderate-Income National Objective as defined and described in detail in Chapter 2 of the CDBG GMM.

B. Milestones
All CDBG program-funded activities must be timely implemented in accordance with the milestones defined in the Standard Agreement. Milestones should be project/program specific and a reflection of significant progress. Applicants must include at least five (5) milestones per Activity application. The first and last milestone will be prepopulated and cannot be edited by Applicants. Failure to meet the first milestone identified, is a material breach of the Standard Agreement and will result in a for-cause termination of this Agreement.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 16
• First Milestone: Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement
• Milestone Two: [populated by Applicant] – examples below • Milestone Three: [populated by Applicant] – examples below • Milestone Four: [populated by Applicant] – examples below • Final Milestone: Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).

TIP: The Department recognizes that Applicants’ proposed milestone dates are estimates.

Instead of using an actual date for all optional milestones, please utilize time frames.

For example:

Milestone One (required): Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement.

Milestone Two: Release Invitation for Bid (IFB) within 90 days of Standard Agreement execution by the Department.

Milestone Three: Execute contract with a General Contractor within 120 days of Standard Agreement execution by the Department.

Milestone Four (optional): Begin construction within 9 months of Standard Agreement execution by the Department.

Milestone Five: Record Notice of Completion within 2 months of project completion.

Milestone Six (required): Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).

Prior to Standard Agreement execution, your CDBG representative may update milestones if changes need to be made.

Additional milestones are optional, though encouraged for best practice of Activity implementation. Applicants are encouraged to evaluate feasibility of meeting milestones and build time for unexpected delays into the milestone schedules.

Milestones may not extend beyond the term of the Standard Agreement. All California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 17
milestones proposed by Applicants are subject to the review and approval of the Department in its discretion.

C. Public Participation
Pursuant to 24 C.F.R. §570.486, Applicants must follow CDBG public participation regulations. Applicants must provide documentation that the Department’s Citizen Participation Plan requirements have been met. Documentation must include proof of public noticing, information provided during the public meeting, and public comments received during the public participation, including Jurisdiction responses to comments. Additional information about public participation requirements can be found in CDBG GMM Chapter 4.

This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.

V. Application Threshold and Initial Requirements
All applications are required to meet and pass threshold requirements at the time of application submission, as determined by the Department. Applications that do not meet threshold will not move on to ranking and scoring and may be immediately disqualified.

The Department strongly recommends a careful review of the application and application instructions PRIOR to beginning the application.

A. Single Audit
Applicant must provide the Department with its most recent single audit (as submitted to the State Controller’s Office), if applicable. If the Applicant had or has single audit findings identified in the audit, the Applicant must include the remediation plan/agreement; the Applicant will be deemed ineligible for funding through the CDBG program until the findings are resolved or a remediation plan or agreement is established. All findings, remediation plans, and agreements will be reviewed by the Department for risk. A risk determination will be made at the sole and absolute discretion of the Department and applications may be deemed ineligible for funding based on the determination. Any and all single audit findings are included in this evaluation.

This requirement is not limited to federal funds administered by the Department. If an Applicant is currently not subject to single audit requirements, the Applicant may be required to submit their last filed single audit for review.

If an Applicant is not required to submit an annual single audit, they must provide documentation directly from the State Controller’s Office (SCO) to such effect.

B. Site Control
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 18
Applicant must submit evidence of site control.

1. If securing federal funding is contemplated for any stage of a project at the time a project site is acquired, grantee must complete a NEPA environmental review record prior to completing the acquisition. Failure to do this will result in a choice-limiting action, which prohibits the project from receiving any federal funds in the future. If a site is to be acquired for a CDBG-funded project, regardless of whether CDBG funds are used for acquisition or development and construction, evidence of site control must be provided.

Acceptable evidence of site control may be conveyance documentation with substantiation that the transfer is contingent on completion of a NEPA environmental review record and securing federal funds.

2. Construction-related activities must have documented site control for the year in which the application is submitted and for the duration of the Standard Agreement. Public facilities are subject to a five-year no change in use restriction. The restriction recorded against the property, must run with the land and remain in effect regardless of the ownership of the property.

3. If project/activity is in a public right of way or easement, the grantee must submit a satisfactory opinion of counsel that all necessary rights, easements, and permits have been obtained.

4. If site control is expected to expire during the open activity period, the Applicant must document that either an alternative site will be made available or that the activity operators intend to extend or renew the site control on the existing site.

All activities will need to provide proof of intent to extend site control and submit documentation upon site control extension. Site control must be maintained through the operation period of the activity.

5. Acceptable evidence of site control may include: a conditional purchase agreement or enforceable option for projects involving acquisition, a lease option agreement from DGS and/or HCD as verified by HCD’s Excess Sites Team, a deed or lease, or a title report showing ownership of the property vested in the applicable entity. The determination as to what constitutes acceptable evidence of site control shall be made by the Department in its sole and absolute discretion.

C. Statement of Assurances (Appendix D)
Applicant must submit the fully executed Certifications and Statement of Assurances (see Appendix D), including the Jurisdiction’s name, initialing all pages [where applicable], and completing the last page. Please review the Statement and confirm compliance with each requirement. Failure to comply with the certifications and assurances may result in disqualification, recapture of federal funds, and/or California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 19
debarment.

D. Resolution

1. Applicant must submit a completed Authorizing Resolution using the required Department-approved Authorizing Resolution form, which has been duly approved by the Applicant’s governing board. The Authorizing Resolution designates a person or persons responsible for, and authorized to, execute and deliver all documents related to the application of CDBG funds and, if awarded, the execution of a Standard Agreement with the Department.

2. See Appendix C for the Department-approved Authorizing Resolution form as well as instructions on how to complete it.

3. If a governing body must prepare a separate resolution concurrently that conforms to its local standard, it may do so in addition to preparing the Authorizing Resolution form provided by the Department. Applicants must submit their approved resolutions on the form provided by the Department by the application due date. Failure to provide an acceptable resolution at the time of application will result in a delay executing the Standard Agreement.

4. Authorized Signatory involving a City Jurisdiction: Pursuant to California G.C. Sections 40601 and 40602, the mayor or mayor pro tempore must sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance or municipal code provision in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance or municipal code provision described above, then the Department requires that the mayor or mayor pro tempore sign the Standard Agreement as the authorized signer for the city and provide to the Department the Resolution from the City Council authorizing the mayor to sign the Standard Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance or municipal code provision in effect that expressly authorizes such delegation and a duly authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance or municipal code provision as described above, the Department requires the city to provide a copy of such ordinance or municipal code, as well as the Resolution that indicates the name and title of the city official authorized to sign the Standard Agreement and related documents. The Resolution required by this section must be in form and content acceptable to the Department. The Department reserves the right in all cases to require the Applicant to timely provide a satisfactory written legal opinion from the City Attorney (or other legal California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 20
counsel) stating that the designated signatory for the City has full, current legal authority to execute and deliver this Standard Agreement, and all subsequent amendments and other documents related to the Standard Agreement, to the Department.

E. TIN
Applicant must submit the required Government Agency Taxpayer ID (TIN) Form found in the Files tab of each program solicitation. The submitted TIN form must include FEIN, accurate payment information to be complete, and must not have been signed more than one (1) year before submission.

F. Budget
Applicant must complete CDBG budget found in the Grants Network portal.

Required budget information includes direct costs only. Direct costs for Activity, GA, and Program Income, if applicable, must be completed and clearly identified. Do not include any information on indirect cost, match, or cost share. Budget requests must be in whole dollars and not include any cents.

A Budget must be completed for the Main and every Sub Application. Failure to complete the Budget for the Main and every Sub Application may result in an immediate disqualification.

G. Sources and Uses Chart
Applicants must submit a Sources and Uses Chart which evidences the commitment of all funds required to complete the applied for CDBG project or program. The application will guide Applicants that are using multiple funding sources to upload a comprehensive Activity Sources and Uses Chart. Grantees may use their own form, or the template Sources and Uses Chart found in the Files tab of the application.

Evidence of commitment of any funding sources other than CDBG needed for a project to be feasible must be uploaded at application.

The Sources and Uses Chart must itemize the general projected costs of the project or program.

H. System for Award Management (SAM)
Pursuant to 24 C.F.R. Part 5, all CDBG Applicants are required to verify they and their principals, or any/all persons, contractors, consultants, businesses, subrecipients, etc., that are conducting business with the Applicant are not presently debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction. Applicants and their partners, contractors, consultants, and subrecipients must register with the System for California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 21
Award Management (SAM) to do business with the U.S. government and have debarment checks that return a registration status of “Active” and “No Active Exclusion Records” under the Exclusion Summary. See Chapter 5 of the CDBG GMM for additional guidance.

The Department will not award or distribute any CDBG program funds to Applicants and Applicant partners, including contractors, subrecipients, and consultants that are debarred, suspended, proposed for debarment, declared ineligible, voluntarily excluded from participation, and/or unregistered in SAM from federally assisted programs. Applicants are not required to perform debarment checks on individual Applicant or partner employees or individual persons unless that person is acting as a contractor, consultant, subrecipient, or program partner and will be receiving payment directly from CDBG funds. Debarment checks for Applicant and all applicant partners must be completed before award of funds.

I. State Objectives
The Applicant must answer the questions regarding Disaster Resiliency in the application form.

J. National Environmental Policy Act of 1969 (NEPA)
Pursuant to 24 C.F.R. 570.604 Environmental Standards, the regulations in 24 C.F.R. Part 58 specify how the National Environmental Policy Act of 1969 (NEPA), must be met. Applicants must demonstrate compliance by submission of a complete, current, and applicable Environmental Review Record with the appropriate level of review form, completed Related Federal Laws and Authority topic worksheets (as applicable), and all supporting documentation. For more information regarding the Related Federal Laws and Authority, please visit the HUD Exchange website.

Required NEPA process, training, and current forms are available on the HUD Exchange website. Additional HUD guidance can be found on the Orientation to Environmental Reviews page and additional Department guidance can be found in Chapter 3 of the CDBG GMM and Environmental Review Steps CDB Program.

If CDBG funds will be used for GA Activities, a GA NEPA Environmental Review Record must be submitted specifying the applicable exemption in 24 C.F.R. §58.34(a).

For Business Assistance and Housing Assistance activities that operate as a program but, as per HUD, require a Tiered Review process with site specific environmental reviews for NEPA clearance, both a GA NEPA review and Tier 1 NEPA review are required at time of application.

All documents must be submitted in the application portal. Do not send any documents to the Environmental Services Team (EST). If an application is awarded, California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 22
program staff will submit documents to EST as needed.

K. Construction Projects
All construction projects applying for funding under this NOFA must demonstrate readiness at the time of application, including but not limited to, the submission of the following items:
• Independent Cost Estimate
• Completed NEPA Environmental Review Record for the project. • Bid-ready Plans and Specs
• Certification from Engineer that Plans and Specs are bid-ready • Certification from City that bid docs are ready
• Construction timeline (Gantt Chart preferred)
• Demonstration and Certification that jurisdiction has the capacity and knowledge to manage the project.
• Demonstration and Certification that developer is experienced. • List of required permits including anticipated date of obtaining the permit and any prerequisites needed to obtain the permit. Specifics regarding permit acquisition should be detailed in the application Narrative and Milestones.
• Written commitments for any and all third-party funding that is needed to complete the project.

L. Economic Development (ED) Programs Only
The Applicant must demonstrate capacity and experience to operate an ED Program. Capacity and experience may be documented through one of the following options:

1. The Applicant has hired staff that are able to dedicate capacity to the operation of a CDBG-funded ED Program. These staff must have at least:
i) Three years of CDBG ED experience; or
ii) Five years of commercial underwriting experience plus two years of general CDBG experience; -OR2. The Applicant has prepared a draft request for proposals (RFP) or subrecipient selection process for a qualified consultant or nonprofit ED group with direct experience in implementation of the ED activities proposed in the ED Program application.
i) A request for proposals or a subrecipient selection process must be completed within 60 days of applicant’s receipt of the Standard Agreement. A copy of the executed agreement with the selected subrecipient or contractor must be California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 23
provided to the Department within 120 days of execution of the Standard Agreement. These must be listed as milestones in the application. -OR3. The applicant has identified at least three (3) qualified consultants or nonprofit ED groups with direct experience in implementation of the ED activities proposed in the ED Program application.

4. The Applicant commits to partnering with the Small Business Development Centers or a similar organization that has direct experience in CDBG ED program design, implementation, and commercial underwriting. This commitment will be a resolution, memorandum of understanding, or similar formal statement and will be required at application.

M.Planning Related to Another Activity Only
Applicants wishing to apply for engineering, architectural, and design costs (bidready plans and specs) related to a specific eligible construction activity may do so under a Planning application, however this will not be considered a Planning-only activity. It will be considered Planning Related to Another Activity and will be coded under the ultimate planned-for Matrix Code. For example, bid-ready plans and specs for a senior center will be coded under 03A for Senior Center, and will not be considered to have met the National Objective until the Senior Center is fully built.

To submit an eligible Planning Related to Another Activity application, applicants must demonstrate activity feasibility and obtain written approval from the Department prior to submitting an application. Without prior written authorization from the Department, the application will not meet threshold.

To obtain written authorization, submit an email to [email protected] with the following information:

1. Description of the work to be done.

2. List of deliverables (i.e. architectural designs, independent cost estimate, etc.).

3. If there was a feasibility or preliminary engineering/architectural study conducted for this project, please include that as an attachment to the email.

4. If there was no feasibility or preliminary engineering/architectural study conducted, describe how the jurisdiction determined project feasibility.

5. How does the jurisdiction plan to fund the project when all planning deliverables are complete? Please note, CDBG cannot be the sole funding source.
a. If planning to utilize CDBG funds, what is the contingency plan if the jurisdiction does not receive a CDBG award for the project? California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 24

6. Identify if there are any potential barriers to this project (e.g., permitting, laws, site control, community opposition, etc.).

7. Provide a timeline for the project from planning through construction and closeout.

8. Provide a cost estimate for the project.

9. Is the project’s NEPA complete? If so, please provide.

Additional information may be requested and must be provided. Submission of information does not guarantee written authorization. Once all information is provided and reviewed, the Department will review the information and determine in its sole and absolute discretion, if the proposed activity is feasible and provide written authorization as applicable. Authorization letters are only valid for the current NOFA cycle.

All requests must be submitted via email to the CDBG Unit inbox ([email protected]) no later than by 9AM (PST), 14 calendar days prior to the Submission Portal Opening Date as stated in Section I.B. of this NOFA. If the 14th day lands on a holiday or weekend, the deadline will be the next available business day at 9AM (PST).

N. 50 Percent Rule
Any applicant with one or more current and open CDBG Standard Agreements for which the expenditure deadline established in the agreement(s) has not yet passed must have expended, in aggregate, at least 50 percent of CDBG funds for the same type of activity(s) included in those open CDBG Standard Agreement(s).

For example, if an applicant has 2 open public service awards (one for a hot meals program for $250,000 and another for senior services for $300,000), the applicant must have expended at least 50 percent of the total combined amounts of both awards ($275,001) in order to apply for a new public service application.

Requirement must be met by the time the application submission period opens. For purposes of the “50 Percent Rule,” “expended” means that a Financial Report was submitted in the grants management system and passed at least 2 steps of approval – regardless of the “Spend” column shown in the grants management system.

Applicants with an open CDBG Standard Agreement(s) may not disencumber funds in order to comply with the 50 Percent Rule requirement. Applicants who are preparing to close out an open CDBG Standard Agreement that includes disencumbrance that may affect compliance with the 50 Percent Rule, should submit an exemption request to the CDBG unit inbox ([email protected]) prior to the California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 25
Submission Portal Opening Date. Exemption request must include the draft completed Closeout Package and public notice with proof of posting. The Department has sole and absolute discretion on exemption approval. Exemption approval may be rescinded if the final completed closeout package is not received by the Department by the application submission portal closing date.

VI. Application and Activity Requirements
A. Federal Cross-Cutting Requirements
At time of application submission, all applications must comply with and provide documentation of HUD’s federal cross-cutting requirements found at 24 C.F.R. §570.600 et. seq., and summarized in XII: Federal Program Requirements of this NOFA, as the same may be amended from time to time.

B. Application Verification
Applicants must certify upon submission that their application is true and correct to the best of their knowledge. Selecting an input field or uploading a blank document to circumvent the application requirements invalidates the application certification and will result in immediate disqualification. Applicants that intentionally input false information or that intentionally upload blank documents will have their good standing with the Department revoked and may be determined to be ineligible for other Department funding. Applicants are warned that intentionally providing false information to the Department may constitute fraud.

C. Timely Submittal
Applicants are strongly encouraged to give plenty of time for submitting prior to the application cutoff date and at least several hours prior to the cutoff time.

If an input field, upload requirement, or application component is not functioning correctly, or if there are system outages or other system failures prior to submittal, please contact [email protected] as soon as possible prior to the cutoff time to document the issue so that applications are not disqualified due to technical difficulties. Failure to contact the Department with system issues will not exempt Applicants from application verification requirements.

D. Gap Funding/“But-For”
CDBG is intended to provide stop-gap funding for crucial infrastructure, public safety, housing, and social service projects. CDBG funds may not be obligated to Activities that are documented to already have sufficient funding for the Activity as described, or that have identified multiple funding sources for the same costs, California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 26
resulting in overfunding of the Activity. CDBG funds must be “but-for” funding for every Activity and may not be used to supplant local or state resources. CDBG grant funds cannot be used to replace funds that have been budgeted and/or expended from another funding source for the same Activity (i.e., there cannot be any supplanting). Pre-agreement costs are generally eligible provided that the initial funding for those costs is identified as a temporary funding source (such as a loan from a local fund wherein the loan is float-funding the CDBG Activity pre-agreement costs, but such costs must be repaid so that the temporary loaned funds may be used as originally intended) and that the costs are budgeted to be part of the CDBG Activity.

CDBG funds are not intended to be the sole funding source for a project or program.

E. Good Standing
The Applicant, and any co-Applicant, together with all respective affiliates, must be in good standing with the Department (i.e., are current on all loan and/or grant obligations, have a satisfactory past performance history in all their prior dealings with the Department, and are in full compliance with all Department contracts and reporting requirements). Applicants not meeting the foregoing requirements shall be ineligible to apply for or receive funding under this NOFA.

F. Homelessness Assistance
If you are seeking funding for homelessness assistance, generally defined as activities falling under matrix codes 03C or 03T, you must be a participating member of your local homelessness Continuum of Care (CoC). To demonstrate this, please submit a letter on CoC letterhead signed by the CoC coordinator that states that your jurisdiction is a participating member of the Continuum of Care.

G. Readiness
Planning related to another activity and public facilities and infrastructure project applications must demonstrate readiness as outlined in Section V: Application Threshold and Initial Requirements of this NOFA and the application.

Housing and Economic Development Program applications must demonstrate readiness to be considered for funding. To be considered “ready,” a program will need to provide the following at application submission to the satisfaction of the Department:

1. Draft or final program guidelines,

2. An underwriter either secured or a draft RFP/RFQ to be released within 60 days of Standard Agreement execution by the Department, and

3. A marketing plan/strategy.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 27
H. Waivers
Any requests for waivers or exceptions to any requirements must be submitted to the CDBG unit inbox ([email protected]) within 30 calendar days of the NOFA release. The denial of any request for a waiver or exception may not be appealed.

The granting or withholding of any waivers or exceptions are subject to the Department’s sole and absolute discretion and in compliance with applicable law.

VII. Application Submission
A. Workshops
The Department is conducting a series of both live and pre-recorded application workshops. These workshops will include training on:
i) Resolution (formerly: Resolutions: What is required and why) ii) Public Participation
iii) NEPA (formerly: How to complete the correct level of Environmental Review) iv) Debarment (formerly: How to pull a debarment check) v) Preparing the Narrative & Milestones (formerly: How to write a narrative and milestones)
vi) Single Audit
vii) 2024 CDBG Application & Budget (formerly: Completing the 2024 NOFA Application and Budget)
viii) 2025 CDBG NOFA Review (formerly: CDBG 2024 NOFA Review) Applicants are required to attend these workshop sessions. It is important to attend and engage in the live webinars to ensure a complete and accurate application is submitted. If they are unable to attend the live virtual workshop, Applicants must certify that they have reviewed these workshops on the CDBG website. The website also provides Training and Technical Assistance materials on the CDBG program, the CDBG Program Redesign, using Grants Network, and preparing a CDBG program application in Grants Network.

Excessive corrections may result in disqualification, or an application being reverted to draft to reapply. Please visit the Department’s website for upcoming information.

B. Submission Process
Applicants must follow instructions in this NOFA, the online application, and the CDBG program Guidelines. The Department strongly encourages Applicants to have all required documents on hand when completing the application. Failure to California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 28
follow instructions and timely submit all required documentation (including a Main and all required Sub Applications) will result in disqualification. Time is strictly of the essence with respect to the application deadlines and other deadlines referenced in this NOFA. Once submitted, applications must stand on their own. It is the Applicant’s responsibility to ensure that the submitted application is clear, complete, and accurate. Department staff may request clarifying information but are unable to accept any new documentation that would provide an unfair advantage over other applications. It is strongly recommended that all documents be reviewed and saved to their own electronic files PRIOR to submission.

The CDBG Application and all required attachments must be submitted to the Department through the eCivis Portal. Applicants must certify that all information is true and complete to the best of their knowledge, under penalty of perjury. Per 83 FR 5848 “Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.’’
Applicants that do not have an account with the eCivis Portal should create an account through the eCivis website. Use the “Create an account” option to initiate a profile. See the available training on the CDBG webpage to learn how to open an account. There is no cost associated with an eCivis Portal account.

A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative or [email protected] for confirmation of receipt.

C. Application Submission

1. Applicants are ultimately responsible for what is submitted in an application, even if the application was prepared by a consultant. Applicants that rely on consultants or grant writers to prepare the CDBG application must carefully and thoroughly review the application for completeness and correctness prior to submittal.

2. Applications submitted through the eCivis Grants Network Portal must be submitted by a jurisdiction’s Profile account. Applications submitted by an account using an email address for someone other than a jurisdiction employee will be disqualified.

3. All documents requiring signature must be executed by the appropriate Authorized Representative identified in the Resolution of the Governing Body submitted with the application.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 29

4. All application certifications must be certified by a staff member of the applying jurisdiction with authority to make such certifications on behalf of the jurisdiction.

5. A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative for confirmation of receipt.

D. Applicant Responsibility
It is the duty and responsibility of each Applicant to review the provisions, requirements, and limitations of all funding sources applied for and obtained for a particular project, program, or activity to ensure that each and every requirement of those funding sources is compatible with all Department program requirements and restrictions. Incompatibility of funding sources may result in the denial or cancellation of an award or may result in the placement of conditions or limitations on an award, all as determined by Department in its sole and absolute discretion.

E. Disclosure of Application
Information provided in the Application will become public record available for review by the public pursuant to the California Public Records Act (G.C. §7920, et. seq.).

As such, the Department may disclose any materials provided by the Applicant to any person making a request under this Act, without prior notice to the Applicant.

The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, home addresses, or other personally identifying information (PII).

By providing this information to the Department, the Applicant is waiving any claims of confidentiality, and consents to the Department’s disclosure of the Applicant’s material upon receipt of a Public Records Act request and without advance notice to the Applicant.

VIII. Application Review
All applications submitted by the application deadline and that pass the Threshold evaluation phase will be reviewed for Activity eligibility. Activities that do not meet program eligibility requirements will be disqualified for funding.

The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. This includes, but is not limited to, authorizing California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 30
an eligible increase in funding to any Applicant after the Department makes an award under this NOFA.

A. Review Process

1. All applications will be reviewed for minimum Threshold Requirements as outlined in this NOFA.

2. Applications that meet minimum Threshold Requirements will be placed into the appropriate set-aside if applicable and scored.

3. Awards will be made in order from the highest to the lowest score, within the appropriate set-aside if applicable. If funding cannot be awarded to all planning, public service, projects, or programs, within a set-aside, the highest scores ones will be awarded. If set-asides are exhausted, the remainder will be scored along with all others.

B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years

1. Applicants who have not received a CDBG award in the past five NOFA cycles (2020-2024) will be eligible to rank in priority order from 1 to 3 planning, public service, project or program to compete under a set-aside. i) This rank in priority will be made via a prompt in the main application. ii) PI only Awards are not considered a CDBG Award received in the past 5 years for the purposes of this ranking.

C. Scoring
All applications will be scored according to the evaluation criteria outlined in Appendix F. All applications will be sorted, from highest to lowest score, within each set-aside if applicable. The Department has full and absolute discretion regarding scoring criteria and interpretation of requirements and definitions. The Department’s decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.

The Community Need Score. This value is calculated by transforming the Low/Mod Percentage from HUD’s Low- and Moderate-Income Summary Data (LMISD) based on the 2016-2020 American Community Survey (ACS) into a numerical value, dividing the value in half.

D. Corrections
Prior to routing the application for Standard Agreement packaging, the Department may make clerical changes to the application such as naming conventions, grammar, and capitalization. Any changes will be documented, and the applicant will California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 31
be notified.

IX. Appeal Criteria and Process
Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and the NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of the Department.

The Department will provide opportunity to appeal any disagreed points assessment, pursuant to the appeals process as set forth in the NOFA. Disqualifying threshold determinations shall also follow a similar process, which shall be set forth in greater detail in the NOFA. For reference, all such appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, and/or initial score letter, as applicable, representing the Department’s decision made in response to the application.

A. Competitive Application Appeals

1. Basis of Appeals
i) Applicants may appeal the Department’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award (including point scoring and tie breaker).
ii) At the sole discretion of the Department, the Department’s written determination may include a request for clarifying and/or corrective information. For purposes of this section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform the Department’s threshold, scoring, and feasibility determinations. iii) No Applicant shall have the right to appeal a decision of the Department relating to another Applicant’s application (e.g., eligibility, award). iv) Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be made by the Program Manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.
v) The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA.

2. Process
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 32
i) To file an appeal, Applicants must submit to the Department, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a Competitive advantage to an Applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in the Department review letters.

3. Filing Deadline
i) Appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, or initial score letters, as applicable, representing the Department’s decision made in response to the application.

X. Award Recommendations
Applications that are eligible, complete, timely submitted, and that satisfy all threshold requirements may be recommended for funding, subject to the availability of funds for the activity(ies) applied for. Applicants recommended for award will officially be notified of awards via an award letter sent via email. Subsequently, the grantee will receive award notification through the eCivis Grants Network. The award notification will include instructions for accepting or declining the award, as well as an executable Standard Agreement. Applicants that are not recommended for awards or that fail threshold will be officially notified via email that their application was not awarded or failed to pass threshold. The Final Award List will be posted on the Department’s CDBG webpage. Applicants may request a copy of their application reviews after the review has been completed and the Applicant has been notified of the results.

XI. Awards Announcement and Grant Implementation
A. Awards Announcements
The Department anticipates awards will be announced no later than July 2026. All awards are subject to availability of funds and compliance with all applicable legal requirements of the Program. Until all awards are announced, the CDBG staff will not be able to discuss applications or the status of applications.

B. Standard Agreements
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 33
Successful Applicants (awardees) will enter into a Standard Agreement with the Department. A draft, sample Standard Agreement is included as Appendix E to this NOFA. The Standard Agreement contains all the relevant state and federal requirements, Activity performance and management requirements, and disbursement requirements. The form and content of the sample draft Standard Agreement is subject to revision without prior notice. A condition of award will be that a Standard Agreement must be executed by the awardee within 30 days (contracting period) of the awardee’s receipt of the Standard Agreement(s). Failure to execute and return the Standard Agreement(s) to the Department within the contracting period may result in award cancellation. Award cancellations are final.

Funding awarded through this NOFA will have a 33-month (two (2) years and nine (9) months) expenditure and liquidation period.

To ensure that the Standard Agreement(s) are being sent to the correct individual, Applicants MUST complete ALL required sections of the profile section of the application and must let the Department know in writing if the contact information has changed since the time of application submittal by emailing [email protected]. Standard Agreements and communication during this process will be with the email address designated in the profile section of the Application.

XII. Federal Program Requirements
A. Federal Cross-Cutting Requirements
The CDBG program is administered under the rules and regulations promulgated primarily in 24 C.F.R. §570.600, et seq, as the same may be amended from time to time. These primary regulations are known as the federal cross-cutting requirements and form the basis of the programmatic requirements. The Department incorporates all federal cross-cutting requirements into the state CDBG program, and the regulations in Part 570 are translated into required actions on the part of all Grantees of the state CDBG program.

The following is a list of some of the most commonly applicable federal cross-cutting requirements. This is not an exhaustive list.
i) Environmental Standards (based on National Environmental Policy Act of 1969 [NEPA])
ii) Labor Standards (Davis-Bacon and related laws)
iii) Public participation requirements
iv) Fair Housing
v) Equal Opportunity and Non-Discrimination in federal Grant Programs California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 34
vi) Federal Procurement Guidelines
vii) National Flood Insurance Program compliance
viii) Relocation and displacement requirements
ix) Employment and Contracting Opportunities Section 3 Compliance x) Lead-based paint requirements
xi) No use of debarred, ineligible, or suspended contractors or sub-recipients xii) Uniform Administrative Requirements and Cost Principles xiii) Conflict of interest prohibitions
xiv) Compliance with the Architectural Barriers Act and the Americans with Disabilities Act
xv) Federal reporting requirements
xvi) Grant and subrecipient monitoring requirements
xvii) Build America, Buy America Act (BABA) requirements B. Relocation Plan Requirements
Applicants engaging in project-specific activities that may or will cause the temporary or permanent relocation and displacement of persons, property, or businesses must provide a project-specific relocation plan as part of the application. The plan must meet the standards established in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) and any applicable State relocation requirements. Applicants must successfully demonstrate that they have met URA requirements prior to the start of the project or displacement Activity.

Applicants must include relocation costs in project budgets and timely pay the same to those displaced in accordance with applicable law.

Applicants must provide relocation assistance to persons who may be displaced if the Activity in the grant application is funded. This plan must outline how the Grantee will enforce and manage the project’s relocation and displacement activities and estimate what relocation benefits will be required so those costs can be included in the project’s development budget.

C. Procurement Requirements
Pursuant to 24 C.F.R. §570.489(g), all Grantees must comply with federal procurement requirements. The Department will review the Grantee’s procurement documents for services (i.e., administrative sub-contractor, Davis-Bacon consultant, etc.) at time of monitoring or upon the Grantee’s request.

Requirements for federal procurement can be found at 2 C.F.R. §200.317-327.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 35
Applicants are responsible for meeting all federal procurement standards for goods and services funded through federal programs. Failure to meet procurement requirements may result in disqualification, recapture of federal funds, and debarment.

D. False, Fictitious or Fraudulent Claims
Warning: Any person who knowingly makes a false claim or statement to HUD or the Department may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.

1. Detecting, Preventing, and Reporting Fraud
Fraud is a white-collar crime that has a devastating effect on the CDBG program because the CDBG program beneficiaries are victims of this crime when the CDBG program is abused. The Department wants to stop any criminal assault on the CDBG program it administers, and in doing so all CDBG funds go to people it was designed to help and improve their living conditions.

2. Combatting Fraud
The HUD Office of Inspector General (OIG) is committed to protecting HUD’s programs, operations, and beneficiaries from dishonest individuals and organizations.

HUD cannot combat fraud alone; they rely on Department and CDBG NOFA Applicants to combat CDBG program fraud. HUD also relies on Applicants for, and people receiving, HUD benefits, such as: tenants receiving rental assistance, borrowers with HUD insured loans, or citizens having their communities restored using HUD grants.

The HUD OIG Hotline number is 1-800-347-3735. This is the primary means to submit allegations of fraud, waste, abuse, mismanagement, or Whistleblower related matters for the CDBG program to the OIG.

HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in the CDBG program from HUD employees, anyone administering the CDGB program, anyone working in the CDBG program, contractors, and the public.

You can report mismanagement or violations of law, rules, or regulations by HUD employees or program participants.

Fraud, Waste and Abuse in the CDBG program and its operation may be reported in one of the following four (4) ways:
i) By email:
[email protected]
ii) By phone:

Call toll free: 1-800-347-3735
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 36
iii) By fax:
202-708-4829
iv) By mail: Department of Housing & Urban Development
HUD OIG, Office of Investigation, Room 1200
Field Office
One Sansome Street
San Francisco, CA 94104
(213) 534-2518
HUD OIG, Office of Investigation
Suite 4070
Regional Office
300 North Los Angeles Street
Los Angeles, CA 90012
(213) 534-2518
E. Whistleblower Protection Acts
(Federal Whistleblower Protection Act (5 U.S.C Section 2302(b)(8)) The Federal Whistleblower Protection Act (WPA) protects employees from retaliation for making protected disclosures. The WPA also provides penalties for supervisors who retaliate against Whistleblowers.

1. A disclosure is protected under the WPA if the employee discloses information the employee reasonably believes to be evidence of:
i) a violation of any law, rule, or regulation,
ii) gross mismanagement,
iii) a gross waste of funds,
iv) an abuse of authority, or
v) a substantial and specific danger to public health or safety.

2. In general, an employee or Applicant may make a protected disclosure to anyone, including non-governmental audiences, unless the information is classified or specifically prohibited by law from release. Options for making a protected disclosure include:
i) Informing a supervisor or someone higher up in management, ii) Submitting a complaint to the OIG by emailing the OIG at [email protected], California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 37
iii) Filing a complaint with the Office of Special Counsel (OSC) http://www.osc.gov/
F. The California Whistleblower Protection Act
The California Whistleblower Protection Act (Title 2, Division 1, Chapter 6.5, Article 3.5, G.C. §§ 8548-8548.5) authorizes the California State Auditor to receive complaints from state employees and members of the public who wish to report an improper governmental activity. An "improper governmental activity" is any action by a state agency or any action by a state employee directly related to state government that:
i) Violates any state or federal law or regulation,
ii) Violates an Executive Order of the Governor, a California Rule of Court, or any policy or procedure required by the State Administrative Manual or State Contracting Manual, or
iii) Is economically wasteful or involves gross misconduct, incompetency, or inefficiency. Complaints received by the State Auditor are confidential, and the identity of the complainant may not be revealed without the complainant's permission, aside from to an appropriate law enforcement agency conducting a criminal investigation.

There are many ways to file a complaint:
i) By Telephone:

You may call the Whistleblower Hotline at (800) 952-5665 to file a complaint by talking to one of the State Auditor's employees. The hotline generally is staffed Monday through Friday from 8:00 a.m. to 5:00 p.m. If you call when the hotline is not being staffed, or staff is occupied with other calls, you may leave a voicemail message requesting a return call.
ii) By Mail or Facsimile:

You may file a complaint in the form of a letter to the State Auditor addressed as follows:

Investigations
California State Auditor
P.O. Box 1019
Sacramento, CA 95812
Or you may fax the letter to the State Auditor at (916) 322-2603. iii) As an alternative, you may complete the electronic version of the complaint form (which is available on the State Auditor website at auditor.ca.gov), print it out, and return it by mail or facsimile as stated above.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 38
iv) Online:

Although the State Auditor does not accept complaints by e-mail, you may file a complaint online at
https://app.scoutcms.com/CaStateAuditorWhistleblowerComplaint v) The State Auditor will not undertake an investigation unless there is a basis for believing that your complaint has sufficient merit to warrant spending resources on an investigation. Your complaint should therefore include:
a.A clear and concise statement of what you Compare alleging to be improper activity and why you believe it is improper.
b.The name or other information that clearly identifies the person you are alleging has acted improperly and the department where that person works.
c. The names and contact information for any witnesses who can confirm the truth of what you are saying.
d.Copies of any documents that will support what you are saying. (You should not submit original documents, as they cannot be returned.)
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 39
XIII. LIST OF APPENDICES
Appendices are located in the eCivis Grants Network under the ‘Files’ tab within each specific program solicitation.

Appendix A: Community Need Score
Appendix B: Housing Element and Growth Control Requirements Appendix C: Resolution Template of the Governing Body
Appendix D: 2025 CDBG Application Certifications and Statement of Assurances Appendix E: Sample DRAFT Standard Agreement
Appendix F: 2025 CDBG Scoring Matrix
Appendix G: General Admin Calculator
Attachment B
City of Willits
Community Development Block Grant Economic Development Business Loan Program Guidelines
2025 NOFA
CDBG Program Requirements
Eligible Applicants
CDBG funds under this Program can only be expended on the eligible activity authorized under Title I of the Housing and Community Development Act of 1974 (hereafter called “Act”), section 105(a)(17): special economic development, providing direct financial assistance to private forprofit businesses.

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

The loan applicant must provide documentation that the proposed project will meet CDBG eligibility criteria of national objective and public benefit requirements. The loan applicant must provide documentation of meeting reasonable commercial underwriting criteria outlined below in these guidelines as well as HUD CDBG mandated six underwriting standards. These mandated criteria are described below.

Specific ineligible loan applicants include:
• a business operating a private “exclusive” recreational facility; • non-profit businesses are not eligible under this program; • a businesses or person(s) with unresolved state / federal tax liens; • a business or person in bankruptcy process are not eligible until bankruptcy process is complete;
• a business involved with marijuana growing or processing.

3. Eligible Project Costs
The following list is provided for reference in order to clarify that CDBG funds will only be used for CDBG eligible activities. The primary purpose of the loan program will be to retain businesses and create and retain jobs. CDBG funds are non-discretionary and restricted to certain eligible costs.
• operating capital and inventory;
• furniture fixtures and equipment (FF&E), with or without installation costs; Attachment B
• project site improvements, new construction or rehabilitation of leased space or owned building;
• engineering and architectural plans and required permits or fees; • purchase of manufacturing equipment (with or without installation costs); • refinancing of existing business debt when done in conjunction with restructuring of other existing private financing debt(s);
• purchase of real property, when it provides positive cash flow for new jobs; • relocation grants for persons displaced due to funding of the project; • purchase of an existing business, including documented value of good will.

Ineligible Costs
CDBG funds are non-discretionary, limited to certain eligible costs described in the section above.

Some ineligible costs are:
• costs incurred prior to submittal of BA loan application and environmental review completion;
• costs associated with residential housing development, i.e. on mixed use project; • costs associated with supporting “other” businesses the applicant owns; • costs on a funded project not meeting a national objective; • personal expenses such as cars, home repairs, not directly associated with the business; • costs of paying off personal credit cards;
• costs of paying off any personal debt not directly associated with business; • cash payments of any kind made directly to the assisted business owner(s) (wages or draws) from loan proceeds;
• costs associated with a funded project when the owner(s) or business is found to be on federal debarred list;
• public infrastructure in support of the business;
• research and development costs for future production (speculative).

Once approved, loan funds cannot be shifted from one approved type of cost to another without consideration and approval. If there is a substantial change in the project scope of work or underwriting, then the loan may be re-evaluated by the City, per state and federal regulations, prior to loan closing or disbursement of CDBG funds.

4. Meeting National Objective Standards
All eligible activities funded under this program must meet a CDBG “National Objective” as described in the Act, Section 104(b)(3) and federal regulations 24 CFR Part 570.483. Projects not documented as meeting a national objective are an ineligible activity. Below is a general description of documenting how a project meets the national objective of benefit to low - moderate income (LMI) persons. The City will use Department specific guidance for ensuring each eligible project funded is documented as meeting a national objective.

Projects normally meet a national objective standard when they create or retain jobs and provide over half, at least fifty one percent (51%), of the new job positions or retained positions to low/moderate income (LMI) qualified persons. Businesses proposing to retain or create jobs to LMI persons must agree to allow the City, or their designated representative, to meet with each job applicant prior to hiring or returning to work and complete a Self-Certification of Income Form.

Payrolls must be collected by the City and compared before and after the loan closing to prove Attachment B
over half of the job positions are provided to low-moderate income persons. This will prove the project’s job retention or job creation met the national objective of principally benefiting LMI persons.

5. Meeting Public Benefit Standards
All eligible project activities funded under this program must meet a minimum CDBG “Public Benefit Standard” as described in the Act, section 104(b)(17) and federal regulations; 24 CFR Part 570.483(f)(g). Public Benefit is provided by the loan recipient in return for use of subsidized federal funds, and provides a funding limit or “cap”.

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

The City will require loan applicants to provide an estimate of public benefit generated by investment of CDBG funds into the business via the Job Tracking Form. The jobs retained or created must also be included in the business forecast spread sheet as a business expense. This proposed level of public benefit will be verified after investment of CDBG funding.

CDBG public benefit requirements of the program will be disclosed by the program operator at the start of the application process. The City will use HUD CDBG financial underwriting to identify the need for a CDBG loan and determine the reasonable public benefit that will be generated from the loan.

6. Meeting CDBG Underwriting Requirements
In addition to documenting that the project meets CDBG public benefit standard, the loan must also be documented as meeting the six HUD CDBG underwriting standards, per federal regulation 24 CFR Part 570.483(e). These underwriting standards are required to document a minimum “due diligence” of the City and ensure projects are financially sound enough to meet public benefit and national objective job retention and job creation standards. The six underwriting standards are general, qualitative, and are supported in part by commercial underwriting standards defined below.

The Six Underwriting Standards are:
• project costs are documented as reasonable (typically, third party cost estimates); • all sources of funding for the project are documented with final commitments; • to the extent practicable, CDBG funds are not substituted for private (non-federal) funds; • documentation that the project is financially feasible (based on cash flow projections to support jobs, business expenses, and debt service, etc.); • to the extent practicable, the return of the owner’s equity investment is not unreasonable (based on level of equity and proposed CDBG loan terms); • to the extent practicable, CDBG funds are disbursed on a pro-rata basis with other financing provided for the project.

7. Meeting Other Federal Program Requirements
Since these loans are provided by a federal funding source, there are a number of federal laws and requirements which are triggered by their use. The City will require loan applicants to provide information to determine compliance regarding these laws and requirements. Applicants are Attachment B
required to sign loan disclosures and work with City to ensure each project follows any of the triggered, applicable regulations listed below.

National Environmental Policy Act (NEPA): Every project funded under the program must be reviewed under HUD NEPA regulations24 CFR Part 58 and the City must sign and certify an Environmental Review Record (ERR) for each project prior to approval or disbursement of loan funds. The City is required to sign and certify the correct NEPA EER, per current Environmental Review Requirements.

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

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

Additional labor costs will be added to projects proposing to use CDBG to pay for new construction, rehabilitation, or equipment installation. The City will work with loan applicants to ensure project compliance. The additional time and work required by prevailing wage regulations will be disclosed to the borrower as soon as possible. Any additional costs resulting from this regulation will be incorporated into the CDBG loan approval. Because of the increased costs associated with complying with the prevailing wage requirement, the City will not feature the use of funds.

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

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

All applicants must sign a Certification of No Job Pirating. Job pirating is prohibited per CDBG federal regulation 24CFR 570.482 (h). Job pirating is defined as using CDBG public funds to facilitate the moving of a business and associated jobs from one jurisdiction to another (business attraction). As such, CDBG federal funds cannot be used to attract / subsidize a business to move from one labor market area to another or keep a business from moving out of a labor market by making a retention argument. The City will require all applicants to sign a non- job pirating certification.

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

All program applicants must obtain a SAMS number, if they do not already have one. The number is free and can be obtained on line, often after a great deal of time and trouble. In addition, prior to loan approval, the lender will document that the business being and all owners and affiliated businesses are verified as not on the federal debarred contractors list. HUD also requires that the Department and the City collect certain income and demographic data from the business and any beneficiaries of CDBG funds.

8. Loan Processing and Approval
Fair Lending Compliance
The City CDBG Business Loan Program will be implemented in a way that is consistent with fair lending laws. No person or business shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with CDBG funds on the basis of his or her religion or religious affiliation, age, race, color, ancestry, national origin, sex, marital status, familial status (number or ages of children), physical or mental disability, sexual orientation, or other arbitrary cause. All personal and financial information of loan applicants will be kept confidential.

Loan Application Processing
Certain key anchor businesses in the City may be given initial priority to determine their need for financing. Once this process is completed, loan applications will be processed on a first come first served basis. The City will accept loan applications and review them for initial eligibility.

Applicants that do not meet basic CDBG requirements of the program will be sent a letter or email of explanation. All applications received will be kept on file to document fair lending standards.

Applications that meet basic eligibility requirements will be contacted for a site visit and collection of additional information.

Loan files will be set up as applications are received and compliance information gathered. The business will be required to provide accurate financials for past, current and future projection of the business operations. All owners will have credit checks conducted as part of loan underwriting. The City will arrange to provide sample financial Excel forms (balance / cash flow sheets, profit and loss, personal financial statements, and proforma) and other assistance as needed.

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

The City will assist the loan applicants with meeting these requirements where applicable in the most fundamental and expeditious manner possible. Once the City has compiled a complete loan file with all the credit, financial, and underwriting information needed to show the loan is eligible under these guidelines, then a loan proposal will be prepared. The proposal will be submitted to City Loan Committee for their approval. Once approved, the City program operator will prepare loan closing documents for signing by the borrower and then the City. Funds will be provided to the borrower in accordance with CDBG distribution requirements.

Loan Approval Process
The Loan Committee shall be made up of three (3) people. A representative of the City Community Development Department, a representative from a financial institution, and a local small business owner. Loan approval meetings will be scheduled as loan proposals are ready for presentation.

Loan proposals will be prepared by the Program Operator. Members may request additional information and or attach conditions on closing or funding of the loan. If the loan is approved, then the City can move forward with loan closing.

Applicant Confidentiality
Persons involved in the loan process for this Program will not disclose any of applicant’s business or personal confidential information as part of loan review and approval process. All confidential information of businesses will only be disclosed to persons required to view the information as part of loan review and approval. All personal and business confidential information of loan applicants will be kept in a locked secured storage facility and are not available to persons outside of the program.

9. Dispute Resolution/Appeals Process
Any business applying for assistance through this program has the right to appeal if their application is denied. The appeal must be made in writing to the City. The City will then schedule an appeal meeting for the applicant that will be heard by the Community Development Director.

If the application is denied a second time then the person may ask to have their appeal presented to the Council for a final decision.

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

Attachment B

10. Loan Closing Process
After approval, the program operator for the City will prepare for the loan closing with an Escrow Company if real property is involved. All loan document signings will be witnessed by a Public Notary. The loan closing documents are Laser Pro documents, which are the standard loan documents used by Banks and other lenders. The borrower will sign all the necessary documents and agreements. Then the City will sign the documents. The original loan documents will be kept in a fire proof storage area with the program operator during the loan servicing period.

Determination of Loan Amount
The Program has a minimum loan amount of $35,000. The maximum loan amount is $250,000.

The actual loan amounts will be based on the business’ need for capital to retain employees or create new jobs. Loan amounts may be increased based on Loan Committee approval.

Determination of Loan Term
The loan term is tied directly to the debt service capacity of the borrower, the use of funds, and what security is being pledged for the loan. If a business needs operating capital, equipment, inventory, or supplies, then the term of the loan can be amortized over seven years to minimize monthly loan payments. If the loan is for real property improvements and can be secured on real property, then the terms can be extended out to 20 years. period.

Determination of Interest Rate
The loan interest rate will be one percent (1%).

Loan Processing Fees
The program provides administration funds to pay for loan processing and servicing costs. No direct loan fees will be charged to the borrower. Also, there is no pre-payment penalty on the loans under this Program.

11. Loan Application Evaluation
Each project/business will be evaluated based on the how it has performed in the past and its future financial forecasts. Specifically, the following questions will be asked upon receipt of the loan application.
• Are the proposed project costs eligible?
• Will project meet a CDBG national objective?
• Will business meet public benefit jobs retention?
• Does project appear to meet six HUD underwriting standards? • Are federal overlays triggered that will adversely impact project development? • Are the business and all owners’ credit worthy?
• Does the business and owner pay bills on time, collect on time? • Does owner have documented market demand for projected sales? • Does owner have management capacity to operate the business? • Does owner have financial accounting capacity to operate the business? Attachment B
• Is the owner contributing a reasonable amount of equity? • Is the owner able to get conventional bank financing, if not, why not? • Was the business financially viable in the past (net income covers debt)? • Are there reasonable financial assumptions for future viability/success? • Is there enough collateral available to secure the proposed loan? • Is the owner’s personal financial status stable?
By collecting enough initial application information to answer the above list of questions, the City will have a good sense of how strong a borrower is, and how successful they will be, if assisted with a CDBG loan. Most of this information is collected on the loan application form and verified verbally at the initial site visit with the owner. By meeting the borrower and asking these questions, the City will know what additional information/documentation needs to be collected to provide a clear picture and documentation of how CDBG funds can be used to retain the business and its jobs.

Personal and Business Credit
Each applicant will have third party credit reports obtained showing credit scores and payment history. All owners and their spouses with twenty percent (20%) or more interest in the business will get credit reports reviewed. If the personal credit reporting service, Sarma, which provides detailed credit history form Transunion, Experian, and Equifax, provides low credit scores or shows poor credit history, applicants must provide a written explanation of their current credit situation to clarify their situation.

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

For the business fiscal year, historic financial statements will be required. These will consist of past two year’s balance sheets and cash flow statements. These statements should be put together by the person responsible for doing the bookkeeping and finance management for the business.

A budget showing how the funds will be used must be provided so we understand how the CDBG funds will be used. Using the information in these financial statements, along with any back up documentation required, will provide the information necessary to prepare the loan proposal.

Collateral Requirements
When possible, loans under this program will be collateralized using commercial lending standards. However, the City understands that some borrowers will not have the collateral available to meet conventional lending standards. In these cases, we will determine if the borrower is fully committed to the loan and has provided as much collateral as possible as security for the loan. In addition, the City recognizes that CDBG funding is typically in a subordinate position to banks and other lenders.

Attachment B
It is the goal of the Program to get the best lien position possible to ensure loan repayments.

Types of collateral may include:
• Secured liens on real property,
• UCC liens on machinery, equipment, or other fixtures, • Lease assignments, as appropriate,
• Personal and corporate guarantees, as appropriate, and • Life insurance assignment and other collateral, as appropriate.

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

Business Experience and Management Capacity
The loan applicant will provide brief management histories to show the experience of business owners and their management staff in successful operation of the existing business or something comparable.

12. Loan Servicing
The City will retain all original project files within locked storage. Original legal documents will be kept in locked fireproof filing system for future loan servicing. The City will provide annual income tax statements to the borrower for their tax purposes and other documentation as required within the loan closing documents. All loan payment will be made directly to the program operator and then deposited into a CDBG PI account by City staff. The loan program operator will keep track if loan payments are late; the program operator will follow up to find out why.

The City will require annual financial statements, annual tax returns, and proof of insurance from the borrower during the loan term. Upon reviewing the borrower’s financial statements, the City may require the business to take actions that improve the business’s cash flows. In some cases, the borrower will need to update the program operator on how the business is doing.

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

Demand Projections
It is anticipated that six to seven loans will be made within twenty-four months of program implementation, resulting in full drawn down of the loan funds available.

Forgiveness Terms and Compliance Monitoring
The City BALP will provide loan forgiveness to borrowers when the business has created or retained one FTE for every $35,000 loaned for at least one full annual quarter from the date Attachment B
of loan approval. Loans with forgiveness terms require strict adherence to guidelines for potential loan forgiveness.
• Borrowers must provide quarterly payroll documentation at the time of loan approval and three months thereafter to document job creation or job retention. At least 51% of the employees must meet the low/mod income requirement. This requirement must be documented by a completed and signed self-certification completed by the employee.
• Compliance with job creation and retention requirements is essential for forgiveness and eligibility.

Resolution No. 2026- January 28, 2026
RESOLUTION NO. 2026-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLITS APPROVING AN

APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2025 FUNDING YEAR OF THE STATE CDBG

PROGRAM
BE IT RESOLVED by the City Council of the City of Willits as follows:

SECTION 1:

The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed $3,600,000, for the following CDBG activities, Business Assistance $1,500,000, Public Facilities, $1,000,000, and Planning, $300,000, pursuant to the 2025 CDBG NOFA:

List activities and amounts
Activity (e.g. Public Services, Infrastructure,
etc.)
Dollar Amount Being Requested for the
Activity
ED Assistance to For-Profits $ 1,401,869
Public Facilities $ 934,579
Planning $ 280,373
Administration $ 183,177
SECTION 2:

The City Council hereby approves the use of Program Income in an amount not to exceed $0.00 for the CDBG activities described in Section 1.

SECTION 3:

The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).

SECTION 4:

The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.

SECTION 5:

If an application is approved, the City Manager or designee, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or nonrecordable contract documents, and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 6:

If an application is approved, the City Manager or designee, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in City Council action with the grant.

Resolution No. 2026- January 28, 2026
PASSED, APPROVED AND ADOPTED, this 14th day of January, 2026.

THE CITY OF WILLITS
______________________________
Tom Allman, Mayor
ATTEST:

I, Delores Pedersen, City Clerk of the City of Willits, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Willits, California, at its regular meeting held on the 14th day of January 2026, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:
______________________________
Delores Pedersen, City Clerk
Resolution No. 2026- January 28, 2026

STATE OF CALIFORNIA
Choose an item. of Enter City or County Name.

I, Enter Name of City/County Clerk., Choose an item. Clerk of the Choose an item. of Enter City or County Name., State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said Choose an item. on this Enter Day. day of Enter Month, 20Enter Year.and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

Enter Name of City/County Clerk., Choose an item. Clerk of the Choose an item. of Enter City or County Name., State of California
______________________________________
By: Enter Name of City/County Clerk, Title.
1 Monthly Achievements & Activities
● Friday December 19th a tenant at the Airport noticed an unfamiliar individual was in the tie down area with a plane and appeared to be attempting to tamper with the aircraft. The tenant contacted the owner of the plane, who is also a tenant at the Airport and asked if he had someone working on his plane. The owner stated he did not, and the unauthorized individual was confronted. This is testament to the internal network and mutually supportive nature of the Airport users who help each other and look after the best interests of the facility. The individual falsely stated he was working on the plane, which he had moved from the hangar where it is stored out onto the tie down apron. The tenant then contacted WPD, who responded quickly and removed the individual from the Aircraft and placed him under arrest.

Staff would like to express great appreciation for the officers who responded and deterred this attempted theft and possible threat to the safety of the community and airport facilities.

The Police Department has increased its presence and patrol of the Airport significantly over the last few months, and their vigilance is also greatly appreciated. It was later determined upon reviewing the security camera footage that the individual entered the Airport property by scaling the security fence pedestrian gate located at the Southwest corner of the street frontage. Security camera footage was provided to the arresting officer to support the investigation.
● The Rules, Regulations, & Minimum Standards Document, the second deliverable sighted by the FAA to close out the PART 16 Complaint was provided to an informal AD HOC Committee of experienced long-time tenants to review and provide input or express concerns before finalizing the document and presenting to Council. The hope is to follow up with a meeting or discussion regarding the content and place the item on the next available meeting agenda for consideration and possible adoption as a policy.

The FAA has reviewed early drafts of the document and indicated it is adequate and appropriate. Adoption of this policy is time sensitive, as the FAA is looking to make a final determination on February 16th.
● Staff met with a representative who is a steward of multiple adjoining ranch properties to discuss concerns regarding trespassing and recreational motorcycle activities on the properties they maintain and possible access to the Airport to conduct fence repairs and erosion control. The access appears to be through the southern area of the Airport and adjoining properties well outside the footprint of the runway or movement areas. This series of old trails and roads that intertwine through the foothills of the mutual properties have multiple access points. Options to restrict these activities and unwarranted access are being explored but are challenging due to the randomness and infrequency of when this occurs.

AIRPORT – O28
December 2025 | Report
2 ● Tenants who are delinquent and behind on rent payments have been identified and notices will be sent through certified mail once drafted and reviewed by legal. The hope is that they make good on their lease agreements and provide payments, as empty hangars do not earn revenue.

Project Updates
• Any potential out of pocket improvement projects not critical to safety of flight operations and compliance are on hold due to budget constraints and the Cities current financial state. • Flight operations have increased, the weather has been favorable, and the clear sunny days have allowed for more opportunity.

Staffing Items
• Staff members continue to visit the Airport weekly for maintenance, security evaluation, and fuel quality assurance. Thomas Gallups has separated from employment with the City of Willits.

His duties at the Airport have been distributed amongst the Maintenance department.

Budget Status
● No Change, 3 empty hangars.

Focus for Next Month
● Continue work with legal to continue resolving the PART 16 Complaint and satisfy the FAA determination. Meet the expectations declared by the Director in order to continue receiving the funding needed to sustain the facility, as previously mentioned in this report – This is ongoing.
● Begin planning for tree removal and repair of the Segmented Circle as determined necessary to improve the safety of flight operations by the State DOT (Caltrans Division of Aeronautics) in the recent annual inspection. These potential projects would be funded though State entitlements that have accrued over the last three fiscal years in the amount of approximately 30k eligible solely for the purpose of maintenance of the Airport. ● Procure and install additional “NO TRESSPASING” signs at intervals along the fenced perimeter and access points in accordance with the existing City Municipal Code regarding City owned facilities to make the newly adopted ordinance enforceable by law and serve as notice. – These are on order and due to be installed by the end of the month. 1 Monthly Achievements & Activities
• Issued 12 Building Permits ...............................................4 in November. • Opened 2 Code Enforcement Cases .............................3 in November. • Closed 8 Code Enforcement Cases................................7 in November. • Total of 48 Active Code Enforcement Cases..............54 in November.

The Department required an average of 4 calendar days to issue December Building Permits.  Over the counter Permits (reroofs/minor electrical) are typically issued on the day of submission and are not included in the average processing timeline.  Timeline includes time for Fire Department to complete required review for certain permits.

Project Updates
• Willits Housing Rehabilitation Loan Program
o The City developed an Owner-Occupied Housing Rehabilitation Program funded by the Permanent Local Housing Allocation (PLHA) Program. The initiative is part of the $553,857 allocated to the City for 2019-2023 under the California Department of Housing and Community Development guidelines. These funds aim to assist in the rehabilitation of owner-occupied affordable housing.
o The City is currently accepting applications from Willits homeowners interested in receiving no-interest rehabilitation loans ranging from $25,000 to $50,000 to improve aging homes. The application intake period closes on February 28, 2026. Applications are available through the Community Development Department, and for more information, property owners may contact Phil Davidson at [email protected] or 707-459-7153.
• Community Development Block Grant (CDBG) 2025 NOFA
o City staff has hosted two community meetings to provide an overview of the Community Development Block Grant (CDBG) program and to gather input on potential project ideas for future funding applications. These meetings have served to:
• Educate the public on CDBG program goals and eligibility. • Invite community-driven project suggestions to align with local needs. o Staff will present final recommendations for the City 2025 CDBG Application at the January 28, 2026 City Council meeting.
• Mobile Vendor Ordinance
o The recently adopted Mobile Vendor Ordinance has taken effect. Staff had developed an application for mobile vendors consistent with the Ordinance and is contacting mobile vendors to apprise them of the new permitting process and regulations.

Community Development December 2025 | Report
2 Staffing Items
• No items to report.

Budget Status
• No items to report.

Focus for Next Month
• Clean California Grant
o Finalize Bud Snider Park Improvement Designs
o Coordinate with School District woodshop class to build community kiosks. • City Housing Rehabilitation Program
o Extend application window for property owners to request funding through the City’s Housing Rehabilitation Program to support improvements to owner-occupied homes within the City of Willits.
o Work with library and Willits Weekly to promote program. • Entertainment Zone Ordinance
o Update draft Ordinance to present to Council.
o Coordinate with Willits Police Department
o Seek community input including downtown business owners.

Achievements & Activities
• FY 2023-24 Audit continues all information available has been turned into Auditors • Worked on Bank Reconciliations for current Fiscal Year in preparation of Monthly Treasurer Reports.
• Finalizing preparation for FY 2024-25 Audit. Developed schedules and reports for year end entries.
• Assisted consultant reporting and navigation within the Springbrook Software system • Started process of Dissolution of the Successor Agency and pulled materials from Department of Finance for review.
• Implemented the bank account module for Bank Reconciliation.

Project Updates
• Springbrook Implementation:
o Project Management Module continuing with Configuration. (Task system still in operation) Staffing Items
• Actively working on the realignment of the Finance Department.

Focus for Next Month
• Complete FY 23-24 Audit.
• Springbrook reflection on payroll and process review. • Year End reporting 1099 for Accounts Payable
• Year End reporting W-2 for Payroll
• Preparation of Monthly Treasurer Reports to be presented on a regular basis to Council • Beginning the process of Dissolution of the Successor Agency by using information acquired from Department of Finance.

Finance December 2025 | Report

POLICE DEPARTMENT REPORT
December 2025
Monthly Achievements & Activities
December 2024 December 2025
• 911 Calls Received 52 57
• Calls for service (CFS) 466 471
• Cases 39 50
• Arrests 11 28
• Citations 15 0
• Traffic Stops 58 41
Project Updates
• As staffing allows - continued traffic safety education and enforcement, emphasizing school zones, pedestrians in crosswalks, speeding, and passing on the right violations. • Continued deployment of the speed awareness radar trailer. • Providing extra patrols in city parks as time allows. • Completing various year end statistical reporting requirements Staffing Items
• Police Officer Steven Duran graduated from the Santa Rosa Junior College Basic Police Academy in early December and began the Field Training Program. • One lateral Police Officer remains in the background process. • Community Service Officer Kolby Johnson began training in our Dispatch Center. • The Department continues to focus on an ongoing recruitment effort to fill vacancies for Police Officers, Dispatchers, and Community Service Officers.
1 Monthly Achievements & Activities
• The Parks crew removed benches adjacent to the playground at Snider Park from service due to damages and potential safety concerns and plans to replace them with picnic tables or benches purchased under the Clean California Grant. The Merry-go-round was damaged and removed for repairs, it was re-installed and is currently back in service. The Monkey Bars on the large play structure failed due to wear and age and had to be removed for safety. Replacement options are being identified but will need to conform to industry standards and the original certified engineering design. One of the small Spring Riders was also damaged, but repairs were made and it is also currently in service. Fiber material was topped off for impact attenuation around the swings and other play equipment as needed.
• A small sinkhole on Franklin Ave. resulting in subgrade and surface failure was repaired. This sinkhole was potentially impacting closeout of the Remco / Willits Environmental Remediation Trust. It was determined to be a sinkhole possibly formed by a test boring done previous to the Trust.
• The Flooded Advisory signs and Road Closed Barricades to support Public Safety were deployed during the severe winter storms at multiple locations. The sandbag station was stocked and made available to the community for structure protection and erosion control. • Extra street sweeping and debris collection was conducted during and after the storms subsided, with regular daily storm drain maintenance to keep the drain inlets clear and minimize flooding on the roadways.
• Staff worked with the Willits Rotary Club to update the Ten-Thousand-Step Walk wayfinding signs and bring awareness back to the recreational opportunity available to the community.

Funding for new signage was provided by the Mendocino County Blue Zones Project and they are currently being fabricated. The hope is to install the signs when they are received and schedule an organized community event during the spring to promote the walk. • A transient camp and illegal dump site was cleared on N. Lenore Ave adjacent to Broaddus Creek, approximately 5 cubic yards of debris was removed and disposed of. Additional smaller encampments and sites were also addressed at various locations. • The City Lamp post decorations for the Holiday Season were hung and illuminated the N. Main St. corridor throughout the month; they were removed after the first of the year.

Services & Facilities
December 2025 | Report
2 ●The Variable Message Boards were deployed to bring awareness on E. Commercial St. to make motorists aware of the increased pedestrian activity during the Holidays from seasonal events in the area. The Light Plant was also set up the Skunk Train parking lot to increase public safety at the adjacent crosswalk. Traffic control measures were also set up in the Sports Complex parking lot to support the Roots of Motive Power event and reduce impact from the Solar Project currently underway at that location.
●A down tree on the access road to the WPD Range was cleared. ● The sink in the kitchen at City Hall was repaired and the drain line was cleared. Several roof leaks were addressed.

Project Updates
• Cold Creek Compost contacted the City requesting assistance; their production and storage site had reached capacity, and they were in need of locations to donate and distribute the overstock inventory. Cold Creek Compost has provided donations of material to the Willits community for several years, and accommodations were made. Several truck loads were delivered to the Skate Park parking lot for public consumption. Staff also contacted Willits Unified School District, who also accepted additional material to support the gardens and plantings they have at several sites across the district.
• Pothole patching was conducted at various locations; approximately 12 Cubic yards of asphalt cold mix was distributed as needed. Several areas brought forward by the public were addressed. The material bin was restocked to support additional street maintenance during the winter season and to restore pavement disturbed during utility repairs. • The Delta Ponds located behind the Public Works Corp. Yard were cleared around the perimeter, removing overgrown vegetation to increase holding capacity for overflow from the Wastewater Treatment Plant.
• Necessary repairs to a failed section of storm drain on the corner of Franklin Ave. and Highway 20 / South Main St. are being contracted to the awarded bidder. • Several water leaks were repaired by the Maintenance Department. (SEE UTILITY REPORT FOR

MORE DETAILS)
• Trees at various locations were pruned for clearance and sight distance, this is also ongoing throughout the season.
● Vegetation clearing in the drainage at the Landfill was completed per annual requirements. 3 Staffing Items
●Thomas Gallups, Building Maintenance Technician, has resigned to pursue other employment opportunities. Streets Foreman Darin Bowlds has returned from medical leave with no restrictions and is currently on active duty. Various Staff took time off to spend with family during the Holidays.

Budget Status
• No Report, spending has been reduced, and several projects are on hold.

Focus for Next Month*
*NOTE ; SEVERAL ITE MS WERE ROLLED OVER FROM LAST MONTH OR ARE PART OF ONGOING SEASONAL OPERATION.
• The “Snack Shack” at the Sports complex needs a new roof, and materials are being sourced to make the needed repairs. The shingles are failing as well as the plywood beneath. This will be done in house.
• Pothole patching and minor road repairs at various locations, this is ongoing throughout the wet weather months as the heavy rains create potholes in areas prone to pavement failure. • Pour and finish concrete on a small section of sidewalk on East Hill Rd. Bridge left over from the PG&E Yard Project. This is now an in-house project.
• Continued drainage ditch evaluation and clearing in preparation for the storm season, this will be ongoing as weather permits.
• Storm drain inspection and clearing of debris as needed. • Service and weatherize seasonal parks maintenance equipment. • Wet Weather Preparation for drainage at the landfill and access to the sites monitoring wells. • Evaluate and plan for potential minor improvements to the shoulder on the east side of Railroad Ave. to accommodate parking and support operations at the Willits Food Bank Distribution Facility.
1 Monthly Achievements & Activities
• Weatherized water distribution pump stations.
• Weatherized 1.5 MG tank level transducer at SWTP.
• Exercise all backup power generators at water distribution stations including the SWTP main backup generator.
• Operators continued updating meter replacement information in Springbrook. (Ongoing) • Pressure washed the SWTP building.
• Replaced broken flow chart recorder at Berryhill pump station. • Unclogged and cleaned check valves for the soda ash system. • Replaced pump tubing for the sodium hypochlorite (Chlorine) pump. • Repaired failed check valve in the potassium permanganate pump system. • Drained and refilled the solids up-flow contact clarifier (main pre-treatment before the Trident Filters) due to high turbidities from all the storms including many jar tests to get the right dose to treat properly.
• Ran backup generators during multiple power outages during storms. • Coordinated meeting with Univar (water treatment supplier for chemicals) to add two new tanks for chlorine disinfection for the City pool.
• Worked with Apex to update all computers at SWTP.
• Completed two sewer lateral inspections for home sales. • Cleaned two thousand feet of sewer mainline in the collection system. • Assisted PW and Water Department with three water leaks in the distribution system. • Replaced sewer lateral on W. Van Ln.
• Repaired water leak at 19440 S. Main St.
• Operators continue to replace water meter registers and endpoints throughout the water distribution system.
• Meeting with Trout Unlimited regarding weir removal and replacement alternatives at WWTP.

Project Updates
• Ongoing: Fats, Oils and Grease (F.O.G.) program throughout the sewer collection system. • Ongoing: Sewer lateral inspection program.
• Ongoing: Water meter replacement program.
• Ongoing: Grounds maintenance at Water/Wastewater facilities.

Utilities December 2025 | Report
2 • Reservoir Capacity: Morris 665-acre feet and Centennial 635-acre feet equate to 100-percent of full capacity (January 19th). Overflowing both spillways. • Dec. 2025 Water Usage: SWTP: 9,266,677 MG. December 2024: 9,266,677 MG.

GWTP: 4,800,000MG. December 2024: 4,200,000 MG.

Totals: 14,066,677 MG. December 2024:12,527,907 MG.
• Dec. Non-Potable Water Usage [Truck Fill Station]: 42,450 Gals. • December 2025 Wastewater Treatment Plant Flows: 70,655,232 MG.

Staffing Items
• None.

Budget Status
• In Progress.

Focus for Next Month
• Schedule Veolia for the replacement of the Ultraviolet (UV) Disinfection control panel at WWTP.
• Schedule Trident filter inspection with WesTech for early February. • Schedule 307 Blosser Lane failing sewer lateral replacement at the intersection of HWY 20 at Blosser Lane with Wipf Construction.
• Continue to work on 2025 annual water rights reporting due February 1, 2026. • Complete application (due January 31, 2026) for renewal of the National Pollutant Discharge Elimination System (NPDES) permit (every 5 years) expires January 31, 2027, for the WWTP.