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Linda Turkatte [EH] From: Gerry Kamilos <GKamilos@kamilos.com > Sent: Sunday, March 10, 2019 10:37 PM To: Linda Turkatte [EH] Cc: Scott Andrews Subject: Grindstone Joe Association - Floating Homes to Vessels Dear Linda, We hope you successfully completed your budget meetings last week. Since we received approval from the County on our onshore sewer, water, and electrical work plan and schedule that is now being implemented; our team has completed more research into the floating home issue and the associated conversion to vessels. This email provides a brief summary of the applicable laws and rulings associated with the distinction between floating homes and vessels. We provide at the end of the letter a proposed set of modifications that we believe are sufficient to convert the subject floating homes to vessels under the CA statues and the US Supreme Court ruling. Cal. Health & Safety Code Ann. §18075.55(d)) defines and ascribes specific legal elements associated with floating homes. Floating homes subject to real property taxation pursuant to Section 229 of the Revenue and Taxation Code shall be subject to registration and titling by the department only at the time of sale, resale, or transfer of title. Ownership registration and title to a floating home may be held by two or more co-owners in the manner specified in Sections 18080 and 18081. Upon receipt of a registration card, every registered owner shall maintain the card or a copy thereof with the floating home for which it is issued. "Floating home," as used in this section, means a floating structure which is all of the following: It is designed and built to be used, or is modified to be used, as a stationary waterborne residential dwelling. It has no mode of power of its own. It is dependent for utilities upon a continuous utility linkage to a source originating on shore. It has a permanent continuous hookup to a shoreside sewage system. Upon further review of the GJA matter, it seems that a structure that has a mode of power, is not dependent upon a continuous utility linkage to a source originating on shore, and has no permanent continuous hookup to a shore-side sewage system. Fails to meet the definition of a floating home. This CA Health and Safety Code is consistent with the CA DMV regulations that define vessels: CA Vehicle Code §§9840, 9871.5 and Harbors and Navigation Code §651 states: Vessel— Includes every description of watercraft used, or capable of being used, as a means of transportation on water except: —A seaplane on the water. —A watercraft specifically designed to operate on a permanently fixed course, the movement of which is restricted to a fixed track or arm to which the watercraft is attached or by which the watercraft is controlled. —A floating structure designed and built to be used as a stationary waterborne residential dwelling which: does not have, and is not designed to have, a mode of power of its own, 1