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STAFF REPORT
January 26, 2022
File Number 0480-70
SUBJECT
LOCAL ASSISTANCE GRANT FOR ORGANICS RECYCLING PROGRAM
DEPARTMENT
Utilities Department, Wastewater Division, Recycling and Waste Reduction
RECOMMENDATION
It is requested that the City Council adopt Resolution No. 2022 -19, authorizing the Director of Utilities , or his/her designee, to submit an application to CalRecycle for the SB 1383 Local Assistance Grant. This grant would support the implementation and administration of Escondido's new organics recycling program.
Staff Recommendation: Approval. (Utilities: Christopher W. McKinney)
FISCAL ANALYSIS
Each jurisdiction is eligible to receive grant funding calculated by CalRecycle on a per capita basis, using the Department of Finance’s January 2021 population statistics. The current estimate of the City of Escondido’s (“ City”) award amount is $199,971, although funding amounts are subject to change depending on the applicant pool.
PREVIOUS ACTION
On May 25 , 2016 the City Council adopted Resolution No. 2016 -71, authorizing the Deputy Director of Public Works or his/her designee to complete and submit an application to CalRecycle for Beverage Container Recycling funds to support all citywide recycling education, infrastructure, and programs.
BACKGROUND
The fundamental goal of CalRecycle’s SB 1383 Local Assistance Grant is to provide aid in the implementation of regulations associated with SB 1383. The Senate Bill’s regulations include rescuing at least 20 percent of currently disposed edible food so that it may be redistributed for public consumption, and achieving a 75 percent reduction in organic waste disposal by 2025. Projects implemented by local jurisdictions will assist in meeting these regulatory efforts to reduce statewide greenhouse gas emissions associated with the disposal of organic waste in landfills.
Escondido plans to implement a 20 percent reduction/redistribution of currently disposed edible food by providing education and outreach to businesses and school kitchens, tools to track food usage, and inspections to ensure compliance.
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Escondido Disposal, Inc. opened a new Anaerobic Digestion facility in Escondido in 2021. This facility is the first of its kind in San Diego County and a foundation for Escondido to achieve a 75 percent reduction in organic waste disposal.
Resolutions authorizing a City official to apply for CalRecycle grants are required to be updated every five years. The City’s previous authorization expired May 25, 2021.
RESOLUTIONS
a. Resolution No. 2022-19
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RESOLUTION NO. 2022-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, AUTHORIZING THE DIRECTOR
OF UTILITIES TO SUBMIT APPLICATIONS FOR ALL
CALRECYCLE GRANTS FOR WHICH THE CITY OF
ESCONDIDO IS ELIGIBLE
WHEREAS, pursuant to Public Resources Code sections 48000 et seq. authorizing the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle, and reuse solid waste generated in the state , thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:
1. That the above recitations are true.
2. That the City Council authorizes the submittal of application(s) to CalRecycle for all grants for which the City of Escondido is eligible; and that the Director of Utilities or his/her designee is hereby authorized and empowered to execute in the name of the City of Escondido all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project.
3. That these authorizations are effective for five (5) years from the date of adoption of this resolution.
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ORDINANCE NO. 2022-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, AMENDING CHAPTER 32 OF
THE MUNICIPAL CODE PERTAINING TO SUBDIVISIONS
The City Council of the City of Escondido, California, does hereby ordain as follows:
SECTION 1. The City Council makes the following findings:
a. That the City of Escondido ( “City”) is subject to the requirements of Subdivision Map Act; and
b. That the Subdivision Map Act allows the City to delegate authority for approval of final maps, execution of subdivision improvement agreements, accepting or rejection of dedications, and the release or reduction of securities to the City Engineer, or other designated official, pursuant to Government Code sections 66458(d), 66462(d), 66463(d), and 66499.7(j). c. That the amendments to Escondido Municipal Code Chapter 32 pertaining to Subdivisions as proposed by this Ordinance reflect revisions necessary to align with the Subdivision Map Act.
SECTION 2. That upon consideration of the staff report, City Staff recommendation, and the findings set forth in Section 3 this Ordinance, this City Council finds th at adoption of the proposed Municipal Amendments to Chapter 32 pertaining to Subdivisions are in the best interest of the City.
SECTION 3. ENVIRONMENTAL REVIEW. The proposed Ordinance is not a project under CEQA pursuant to CEQA Guidelines section 15378(b)(5), as the proposed updates are solely changes to the City’s administrative processes, under the authority provided by state law, and consist of administrative activities of the City that will not result in direct or indirect physical changes to the environment.
SECTION 4. That Chapter 32 of the Escondido Municipal Code is hereby amended as set forth in Exhibit “A” to this Ordinance and incorporated herein by this reference as though fully set forth herein. 151
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STAFF REPORT
January 26, 2022
File Number 0260-45
SUBJECT
REVIEW AND RE-AFFIRM COMMUNITY DEVELOPMENT PRIORITIES OF THE FISCAL YEAR 2020-2024 CONSOLIDATED PLAN AND APPROVE ALLOCATION PROCESS FOR FISCAL YEAR 2022-2023 CBDG AND ESG FUNDING –
DEPARTMENT
Community Development Department; Housing and Neighborhood Services Division
RECOMMENDATION
Request the City Council review and re-affirm the community development and homeless priorities of the fiscal year 2020 -2024 Consolidated Plan , and provide guidance on an allocat ion process for fiscal year 2022-2023 Community Development Block Grant (“CDBG”) and Emergency Solutions Grant (“ESG”) funds, and authorize the release of Requests for Proposals for the use of CDBG and ESG funds.
Staff Recommendation: Provide Direction (Community Development Department: Adam Finestone)
FISCAL ANALYSIS
CDBG activities and related administrative costs will be funded solely by grant funds. The City of Escondido (“City”) would be responsible for the long -term maintenance of any capital projects funded with CDBG funds.
ESG funds require a 100% match. Required ESG matching funds for administration will be provided by Successor Housing Agency funds. Subrecipients will provide matching funds for subrecipient projects.
PREVIOUS ACTION
On May 20, 2020, the City Council approved the 2020-2024 Five Year Consolidated Plan (“2020 Con Plan”), which established priorities for the use of CDBG and ESG federal funds over the five-year period, ending June 30, 2025, to benefit low-income residents and neighborhoods in the City, and included the first year Annual Action Plan. The 2020 Con Plan included five community development, five homeless ness, and two housing priorities.
On November 18, 2020, the City Council amended the 2020 Con Plan by incorporating new activities into the first year Annual Action Plan.
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On March 3, 2021, the City Council held the first of two public hearings associated with the FY 2021-2022 (second year) Annual Action Plan to reaffirm the community development, housing , and homeless priorities adopted in the 2020 Con Plan.
On April 21, 2021, the City Council approved the second year Annual Action Plan for use of FY 2021-2022 funds
BACKGROUND
The City receives annual federal entitlement grant s from the federal Department of Housing and Urban Development (“ HUD”) for community development (CDBG), homeless (ESG), and housing (HOME Investment Partnership Program or “HOME”) activities. In 2020, the City also received additional special allocations of CDBG-CV and ESG-CV funds to prevent, prepare for, and respond to, impacts of the COVID- 19 pandemic. As part of the process of receive funding, the City must undertake development of a Five- Year Consolidated Plan and One-Year Annual Action Plan. The 2020 Con Plan helps bring community needs and resources together to achieve statutory goals and addresses decent housing, homelessness prevention, and expand economic opportunities for City residents, particularly for low-income persons.
Based on community needs assessments and public participation, five community development priorities and five priorities for assisting persons experiencing homelessness or at -risk of homelessness were identified and adopted as part of th e 2020 Con Plan. Each year, an Annual Action Plan is developed to determine exactly how funds will be spent in order to meet the goals of the 2020 Con Plan. A first step of the Annual Action Plan process is to hold a public hearing to review and re-affirm the priorities of the 2020 Con Plan and determine if any of the priorities should be emphasized in the coming year.
Annual CDBG and ESG funds can be used to fund capital and public services projects sponsored by either the City or by non-profit organizations. Federal funds may not be used to supplant current spending; new projects must add services in the community. While Congress has allocated funds to HUD, HUD has not yet announced allocations for local jurisdictions. Despite not having final allocation amounts, unless HUD waives its deadline, the FY 2022-2023 Action Plan is due in mid-May. In FY 2021-2022, the City received $1,716,516 in CDBG funds, $155,124 in ESG funds, and $624,351 in HOME funds.
After the City Council has confirmed the 2020 Con Plan priorities and any priority emphasis, Requests for Proposals (“RFP”) will be released to notify possible subrecipients that the City is accepting proposals for projects. A second public hearing will be held on April 20, 2022, to evaluate staff project recommendations and adopt the Annual Action Plan. If final allocations are delayed, staff recommendations may also be delayed. Staff anticipates funding levels to be slightly higher than the current year funding levels.
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CDBG Priorities and Anticipated Allocation Process:
HUD Regulations for CDBG
CDBG regulations place limitations on the amount of funding grantees may use for administration and public services. No more than 15% of a grantee’s annual CDBG allocation may be used for public service activities and no more than 20% of a grantee’s annual CDBG allocation may be used for program administration (which may include fair housing counseling). There is no cap on the percentage of a grantee’s annual CDBG allocation that may be used for capital and other special activities in low and moderate -income neighborhoods. These CDBG -eligible low and moderate- income neighborhoods, as of April 1, 2019, are highlighted in the map included as Attachment 1.
CDBG-funded activities must meet at least one of t hree national objectives set forth by HUD: 1) benefit low and moderate-income persons; 2) aid in the elimination of slum and blight; or 3) meet a particular urgent community need because existing conditions pose a serious threat and no other source of funds is available. Historically, CDBG funded activities in the City have focused on the first national objective of benefitting low and moderate-income persons.
City of Escondido’s Community Development Priorities
The community development priorities approved for the 2020 Con Plan are:
Homeless services: Support homeless shelter and other services. Basic Needs: Provide access to food, water, shelter, and sanitation. Health and Human Development : Provide access to recreation, education, and healthcare (including mental health).
Neighborhood Revitalization: Improve the livability of neighborhoods. Economic Development : Provide economic development opportunities to low -mod income residents and businesses.
CDBG-Funded Activities in Escondido
Progress is being made towards addressing the community development priorities of the 2020 Con Plan. Additional efforts are still required to improve the quality of life for Escondido’s low and moderate-income residents. There are several active CDBG projects, funded over a number of years and currently underway, listed in Attachment 2.
Staff recommends that the City Council re -affirm the community development priorities for the third year of the 2020 Con Plan. The City’s and the community's efforts in addressing these priorities, to date, support the continuation of services directed toward targeted low- and moderate-income neighborhoods. At its January 26, 2022 , meeting, the City Council may direct 154
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staff to focus on one or more of the approved priorities for FY 2022 -2023 funding, or in the alternative, the City Council may amend the Consolidated Plan to include new or additional priorities.
Allocation Process for Fiscal Year 2022-2023 CDBG-Funded Activities In keeping with HUD regulations, the City has used the allowable 15% public service allocation to provide services in targeted low and moderate -income neighborhoods to address the 2020 Con Plan priorities. The City conducts two public hearings in accordance with its Citizen Participation Plan, and utilizes a streamlined allocation process for CDBG. Staff has prepared the draft CDBG Program Guidelines (included as Attachment 3) and RFP (included as Attachment 4) for the use of Fiscal Year 2022-2023 CDBG funds. Upon authorization by the City Council, staff will distribute the RFP to prospective applicants immediately.
ESG Priorities and Anticipated Allocation Process:
HUD Regulations for ESG
The ESG program provides a first respon se to people with a housing crisis and engages people living on the streets with a focus to assist people to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness . ESG regulations limit the amount of funding grantees may use for administration and program delivery to 7.5% of a grantee’s annual ESG allocation. No more than 60% of the total fiscal year grant may be used for street outreach and emergency shelter activities combined.
City of Escondido’s Homelessness and Homelessness Prevention Priorities Based on community needs assessments and public participation, eligible ESG objectives were prioritized to meet the greatest needs in the City:
Homelessness Prevention: To keep households at imminent risk of homelessness from becoming homeless.
Emergency shelters: To temporarily house homeless residents. Essential services to shelter residents: To provide basic needs and case management to homeless residents living in an emergency shelter.
Engagement of home less individuals and families : To conduct outreach to unsheltered people.
Rapid Rehousing: To provide permanent housing to homeless households.
Staff recommends that the City Council re-affirm the homelessness priorities for the third year of the 2020 Con Plan. The City’s and the community's efforts in addressing these priorities, to date, 155
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support the continuation of services directed towards various activities to address homelessness as authorized under the federal Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 and State program requirements. At its January 26, 2022, meeting, the City Council may direct that the objectives be re-prioritized or that FY 2022-2023 focus on one or more of the existing priorities.
Allocation Process for Fiscal Year 2022-2023 ESG-Funded Activities In accordance with HUD regulations, and to ensure sufficient capacity to carry out critical tasks, maximum 7.5% allowable allocation is proposed to be set aside for administering the ESG program. The remai ning funds would be allocated by the City Council through the proposed application and bid -selection process. Staff has prepared the draft ESG RFP (included as Attachment 5) for the use of Fiscal Year 202 2-2023 ESG funds. Upon authorization of the City Council, staff will distribute the RFP to prospective applicants immediately.
ATTACHMENTS
Attachment 1 – Map of CDBG-Eligible Census Blocks
Attachment 2 – Active CDBG Projects
Attachment 3 – Draft CDBG Program Guidelines
Attachment 4 – Draft CDBG RFP
Attachment 5 – Draft ESG RFP
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Attachment 1
Map of CDBG Eligible Census Blocks
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Attachment 2
FY 2021-2022 Active CDBG Programs and Projects
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Administration - (one-year projects)
116-109 CDBG Administration $ 310,790
347259 Fair Housing $ 35,000
Subtotal $ 345,790
Public Service – (one-year projects)
347640 Neighbor to Neighbor $ 45,000
347469 Learn to Swim $ 15,000
347429 Sr. Transportation $ 34,610
347489 Sr. Nutrition $ 56,110
347419 Sr. CARE $ 16,000
347640 Neighbor to Neighbor $ 45,000
347663 Neighborhood Improve Plan $ 33,748
347662 Voices for Children $ 10,000
347661 San Diego Children’s Discovery Museum $ 6,000
347379 Meals on Wheels $ 25,000
347680 EPD Residential KnoxBox Pilot $ 10,000
347676 Mama's Kitchen Home Delivery $ 6,000
Subtotal $257,648
Uncapped Capital Improvement & Other Neighborhood
Revitalization Activities - (Multi-year projects)
342650 Street Light LED $ 123,868
344901 Creek Trail Fencing $ 634,950
344902 Old Escondido Lighting $ 584,032
345664 Sidewalk Infill $ 266,163
345665 Ballfield Light LED Retrofit $ 43,993
347677 Debris Team $ 52,000
347580 Code Compliance $ 115,000
347359 Grants to Blocks $ 85,000
347500 NEAT $ 45,000
347610 Graffiti Removal $ 157,500
346669 Homeless Day Center Site Purchase $ 160,000
346674 Urban Corps Facility Improvements $ 100,000
346671 Jesmond Dene Parking Lot Lighting $ 150,000
346670 Playground Equipment Replacement $ 774,400
346673 PACC Courtyard Improvements $ 199,101
346672 Hoffman Victorian Preservation $ 40,440
347678 Hoffman Victorian Fenestration $ 90,000
347679 Fitness Court (to be reallocated) $ 130,040
Subtotal $ 3,751,487
Total Active CDBG Projects & Programs
$ 4,354,745
City Sponsored Project
Non-Profit Sponsored Project
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PAGE 0
Housing & Neighborhood Services Division
FY 2022-2023 Community
Development Block Grant (CDBG)
Program Guidelines
CFDA 14.218
(FOR PUBLIC SERVICES AND PUBLIC FACILITIES APPLICATIONS AND PROPOSALS) Submission Deadline:
Monday, February 28 2022, 5:00 p.m.
201 N Broadway
Escondido, CA 92025
Attachment 3
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Introduction & Community Development Block Grant Program Overview Funding for the federal Community Development Block Grant (CDBG) Program is authorized under Title I of the Housing and Community Development Act. The US Department of Housing and Urban Development (HUD) provides grants on a formula basis to entitled cities and counties, including the City of Escondido, to develop viable urban communities through the provision of decent housing, a suitable living environment, and by expanding economic opportunities for lower income persons.
These Guidelines are for projects seeking funding during the fiscal year beginning on July 1, 2022.
In FY 2022-2023, the City is expected to receive approximately $1,800,000. A maximum of 15% of the total allocation (approximately $270,000) may be made available for public service programs to be administered by the City or by subrecipients. Another 20% of the CDBG allocation is reserved for administration and mandatory fair housing requirements; the remainder will be available for public facilities and infrastructure projects, to be administered by the City or by subrecipients. The City may choose to reserve funding for City administered programs including senior and youth services, graffiti remediation and code enforcement activities.
For FY 2022-2023, two types of activities will be considered for funding through this application process: 1) Public Services programs; and 2) Public Facilities/Capital Improvement projects.
APPLICANT ELIGIBILITY
The following organizations are eligible to apply for this funding:
Non-profit organizations, City departments, neighborhood organizations, schools, and faith-based organizations may apply for this funding. Non-profit organizations must be granted non-profit status under the internal Revenue Code (Section 501(c)(3), (c)(4) or (c)(5)), and must be incorporated for at least one (1) year by the application submittal date.
Faith-based organizations cannot use CDBG funds to support worship, religious instruction or proselytization. Religious activities must be offered separately from the CDBG supported activity. Faith-based organizations that participate in the CDBG program will retain independence from federal, state, and local governments and may carry outs its mission provided CDBG funds are not used to support religious activities. Faith-based organizations that participate in the CDBG program shall not discriminate against a program beneficiary on the basis of religion or religious belief.
NOTE: The City of Escondido does not directly fund individuals through this program.
PROJECT ELIGIBILITY
In order to qualify for CDBG funding, federal regulations require that all programs and projects must (A) meet one of three national Objectives; (B) address one or more of the local Consolidated Plan Goals and Priorities; (C) be an eligible activity as set forth in 24 CFR §570.201; and D) not be Attachment 3
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ineligible as set forth in 24 CFR §570.207, among other requirements. Projects that fail to meet these applicable tests will NOT BE considered for CDBG funding.
A. National Objectives. CDBG projects must meet one of the National Objectives:
1) Benefit a majority of low and moderate-income (LMI) residents. "Low and moderate-income" is defined as those persons and households who earn at or below 80% of the Area Median Income (AMI) adjusted for family size for the San Diego Metropolitan Service Area (MSA) as defined in Section 102 of the Housing and Community Development Act of 1974, as amended. Income limits are adjusted annually by HUD. (See Attachment A of these Guidelines for current AMI limits.) Documentation of benefit to LMI persons is required for all CDBG-funded projects; or
2) Meet a community need having a particular urgency because existing conditions pose a serious and immediate threat to the health and/or welfare of the community and no other financial resources are available to meet the need; or
3) Aid in the prevention or elimination of conditions of slum and blight.
The City of Escondido has typically funded projects filling the first National Objective.
B. Consolidated Plan Goals and Priorities. In addition, the City has adopted local Goals and Priorities for allocation of CDBG funding. The Goals and Priorities, summarized below, are more fully described in the FY 2020-2024 Five-Year Consolidated Plan which is available for review at the Housing & Neighborhood Services public counter, located at 201 N Broadway, Escondido, CA 92025. The FY 2020-2024 Consolidated Plan is also available for review on the City’s website at
https://www.escondido.org/Data/Sites/1/media/PDFs/Neighborhood/2020ConPlansub mittedtoHUDREV.pdf. CDBG projects must address one or more of the local Goals/Priorities to qualify for funding:
Goal 1: Homeless services
Priority Need: Support homeless shelter and other services
Goal 2: Basic Needs
Priority Need: Provide access to food, water, shelter, and sanitation
Goal 3: Health and Human Development
Priority Need: Provide access to recreation, education, and healthcare (including mental health)
Goal 4: Neighborhood Revitalization
Priority Need: Improve the livability of neighborhoods
Goal 5: Economic Development
Priority Need: Provide economic development opportunities to low-mod income residents and businesses.
Attachment 3
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C. Eligible Activities. Further, CDBG Projects and activities must be eligible as set forth in 24 CFR §570.201:
Public Service Activities: Eligible programs under the Public Services category include services concerned with nutrition, child care, mental health, drug abuse, education, fair housing counseling, energy conservation and others.
Examples of services and programs potentially eligible under this category include:
Programs serving low-income youth in Escondido
Programs providing services to homeless and non-homeless special needs persons, such as disabled persons, the elderly and other persons with special needs Neighborhood revitalization services - programs that support neighborhood revitalization efforts in targeted areas including home repairs or community face-lifts
Public Facilities/Capital Improvement Activities: Eligible projects under this category include public facilities, community facilities, parks, and public improvement projects, including but not limited to all facilities that are publicly-owned or privately-owned (by a non-profit organization or school) and open to the general public, and provide a benefit to low income residents or low income areas that are primarily residential. CDBG funds should not be considered as a primary funding source for large non-profit sponsored projects, applications should discuss non-profit’s efforts to fund the project and available leverage.
Examples of projects potentially eligible under this category include:
Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements, including Americans with Disabilities Act (ADA) improvements Infrastructure improvements (construction or installation) including but not limited to streets, curbs, and water and sewer lines
Neighborhood facilities including libraries, recreational facilities, community centers, parks, playgrounds
Facilities for persons with special needs such as senior centers, facilities for the homeless, or group homes for the disabled
D. Ineligible Activities. CDBG projects must not be ineligible as set forth in 24 CFR §570.207.
Examples of activities that will render a project ineligible include:
Programs or services that primarily serve non-Escondido residents Projects or programs that do not serve primarily LMI persons New housing construction
Political activities
Income payments, stipends, marketing and fundraising
Purchase of equipment, furnishings or personal property Services that promote religious activities
Payment of debt or pre-award expenses
Entertainment, furnishings and personal property
Attachment 3
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DOCUMENTATION OF BENEFIT TO LOW AND MODERATE-INCOME
BENEFICIARIES
As noted above, all programs and projects funded with CDBG funds must benefit primarily LMI individuals and families (the primary national objective). In order to determine whether and how a project benefits LMI persons, the applicant must clearly define who will be served by the project or service (the “target population”). Documentation of benefit to LMI persons is required for all CDBG-funded projects.
Once the target population is determined, the proposed project will be categorized as either Area Benefit or Limited Clientele. Housing & Neighborhood Services staff will make the final determination of which category a project or program will fall into and the level of documentation required.
A. Area Benefit. If the program or project serves all residents of a particular area that contains primarily LMI persons, the project may qualify as an Area Benefit activity. For these activities:
1. The boundaries of the service area must be clearly defined. Applicants must attach a map showing the project location and draw lines on the map outlining the boundaries of the geographic area served; and
2. At least 51% of the residents in the service area must be LMI.
A map of Escondido’s low-mod census blocks is included as Attachment B for reference.
B. Limited Clientele. If the project serves a particular clientele that is primarily LMI (but serves the whole city), the project may qualify as a Limited Clientele activity. For these activities:
1. Intake and/or qualification procedures must be in place (or be developed) that capture demographic information from each participant, including race, ethnicity, household size and the income levels of all persons being served; AND
2. At least 51% of the persons served by the proposed program must be LMI (see Attachment A – Area Median Income Limits); OR
3. Presumed benefit: If the program exclusively serves clientele that are “presumed” to be LMI, information about income does not need to be collected; however, information about race, ethnicity, etc. must still be collected. “Presumed benefit” populations include abused children, battered spouses, elderly persons (age 62 and older), severely disabled adults, homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers.
Attachment 3
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HUD DEFINITION OF DISABLED PERSON:
A person who is determined to:
A. Have a physical, mental, or emotional impairment that:
Is expected to be of long-continued and indefinite duration; Substantially impedes his or her ability to live independently; and Is of such a nature that the ability could be improved by more suitable housing conditions; or
B. Have a developmental disability, as defined in section 102(7) of the Developmental Disabilities Assistance and Bill or Rights Act (42 U.S.C. 6001-6007); or C. Be the surviving member or members of any family that had been living in an assisted unit with the deceased member of the family who had a disability at the time of his or her death.
HUD DEFINITION OF ELDERLY PERSON/HOUSEHOLD:
A household where either the head of the household, or spouse/co-head, is age 62 or older.
ENVIRONMENTAL REVIEW REQUIREMENTS
An Environmental Review is required for each project or program that receives CDBG funding.
Premature commitment or expenditures of any funds prior to completion of the environmental review will jeopardize the eligibility of the project. This includes use of an agency’s matching funds from other sources. Environmental reviews are required to comply with National Environmental Policy Act (NEPA) and HUD’s enforcement measures. The review includes analysis of 13 federal laws designed to protect certain environmental areas. If the Application is funded, City staff will initiate the review and the agency will be kept informed about the estimated length of time to clear the project.
The environmental review process for Public Service programs usually (but not always) requires a lower level review, normally can be completed at no cost, and can usually be cleared quickly so as not to delay the program start up. However, especially for Public Facilities projects, if an Environmental Assessment or higher level of review is required, the project applicant may be required to engage a qualified professional from an outside environmental consulting organization whose qualifications must be approved by the City prior to engagement, at its own cost. Depending upon the project location and environmental conditions, projects involving construction, rehabilitation and demolition can take up to 120 days to obtain an environmental clearance.
Attachment 3
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ADA ACCESSIBILITY FOR PERSONS WITH DISABILITIES
The Americans with Disabilities Act (ADA), State Title 24, and the Fair Housing Act prohibit discrimination based on disability. Please be advised that your project will be reviewed for compliance with federal and state laws as they relate to accessibility. Accessibility includes such things as: entrance ramps, parking with universal logo signage, grab bars around commodes and showers, required height for toilet seats, space for wheelchair maneuverability, accessible water fountains and counters, and other improvements needed to assure full access for the disabled, including the blind and deaf. Additional information can be found at www.ada.gov.
FINGERPRINTING
CDBG-funded staff working with children, persons with disabilities, and the elderly must be fingerprinted, via live scan fingerprinting. This is an eligible CDBG cost and should be reflected in the budget.
CONFLICT OF INTEREST
Conflicts of interest (or appearance thereof) can plague activities supported with federal funds.
The general rule is that no employee, board member, officer, agent, consultant, elected official, or appointed official of the recipients or sub-recipients that are receiving funds under a CDBG- assisted program who have responsibilities with respect to the CDBG activities or are in a position to participate in decision making processes or have access to inside information with regard to the activities can obtain a financial interest or benefit from a CDBG assisted activity during their tenure or for one year thereafter (Federal Regulation 24 CFR 570.611). Agencies should maintain a written code of standards of conduct governing the purchase of materials, product, supplies, and services and awarding and administering sub-recipient contracts. Personnel involved in the procurement process must be trained to recognize situations that create conflicts of interest, or the appearance of a conflict of interest.
The agency personnel should:
Be familiar with the agency's code of ethics and potential conflict of interest issues. Not take gifts or gratuities from persons or organizations associated with the procurement process.
Attachment 3
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DAVIS-BACON LABOR STANDARDS
Construction work that is financed in whole or in part with CDBG funds is most likely subject to the Federal labor standards requirements, including the Davis-Bacon and Related Acts, for payment of prevailing wages. Additional information is available in the publication Making Davis Bacon Work: A Contractor's Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects (hudexchange.info) , which contains additional labor compliance resources that may be of assistance. Triggering of Davis-Bacon and Related Acts may increase the project costs.
If construction work is proposed, contact CDBG Program staff at (760) 839-4057 for assistance in determining whether your project is subject to Davis-Bacon requirements.
LEAD-BASED PAINT REGULATIONS
HUD has issued final regulations on notification, evaluation, and reduction of lead-based paint hazards in some facilities receiving federal assistance. Rehabilitation of facilities where children are served may be affected by this regulation resulting in testing the painted surfaces that will be disturbed to determine the presence of lead-based paint. If paint surfaces are not lead-free, safe work practices will be required along with possible methods of removal.
ASBESTOS TESTING
An asbestos survey (AHERA) will be required on all renovation projects to determine the presence of asbestos. The agency should include the cost of the survey and provide for contingency funds for remediation if asbestos is present. The survey will visually review all suspect asbestos containing materials (ACMs) associated with the building’s interior and will collect samples for laboratory analysis prior to the Public Facilities renovation project. The survey will identify whether asbestos containing materials were found and what classification.
SECTION 3 REQUIREMENTS
All housing construction, demolition, rehabilitation and other public construction projects funded with CDBG funds must comply with Section 3 requirements to the greatest extent feasible.
The City is committed to improving economic conditions in our community. The City will actively implement Section 3 regulations to direct work paid for by federal funds to Section 3 Residents and to Section 3 Business Concerns. Under the federal regulations, contractors and subcontractors will be required to certify that they will follow the required prioritization of effort for Section 3 workers (Twenty-five (25) percent or more of the total number of labor hours worked by all workers on a Section 3 project are Section 3 workers), Targeted Section 3 workers (Five (5) Attachment 3
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percent or more of the total number of labor hours worked by all workers on a Section 3 project are Targeted Section 3 workers, as defined at 24 CFR Part 75.21), and Section 3 business concerns.
After completion of the project, on the Section 3 Cumulative Report, contractors and subcontractors will be required to certify that they followed the prioritization of effort requirements. If the contractor and subcontractor does not meet the safe harbor requirements, they must provide evidence that they have made qualitative efforts to assist low and very low- income persons with employment and training opportunities.
VOLUNTEERS
The use of volunteers on a Public Facilities project, who are not otherwise employed by the agency or contractor, requires City approval. Depending on the work the volunteers will perform, state-licensing requirements will apply. For example, volunteers performing trade work (electrical, plumbing) must be licensed. To determine in-kind volunteer contributions requested in the budget, use the estimated amount of what a paid worker would earn doing the same type of work.
MATCHING OR LEVERAGED FUNDS (COST SHARING)
Matching or leveraged funds are those other agency resources (non-CDBG) immediately accessible and firmly committed that are to be applied to the program or project. Leveraged funds can include a combination of cash, grants, loans, or in-kind resources available to finance the program costs. Program costs can be shared among all leveraged funding sources. In-kind contributions must have a specific dollar value established in accordance with generally accepted accounting principles. The basis of determining the value for personal services and donated materials and supplies must be identified and documented in the Application. Volunteer services may be counted if the service is an integral and necessary part of an approved CDBG-funded program. Rates for hours should be consistent with those paid for similar work in the labor market in which the applicant competes for the services involved. The value assigned to donated materials and supplies should be reasonable and should not exceed market value at the time of donation.
CDBG APPLICATION REVIEW PROCESS
The City of Escondido’s CDBG funds will be allocated annually through an Application process to the maximum extent practicable within the City of Escondido. To encourage public participation in the development of the CDBG program, the City has adopted a Citizen Participation Plan which outlines the procedures to be followed by public officials and private citizens to establish projects to be funded for a given program year that address identified needs in the Five Year Attachment 3
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Consolidated Plan. The complete Citizen Participation Plan is available for review in the City of Escondido’s Housing & Neighborhood Services Division, 201 N Broadway, Escondido, CA 92025.
A summary of the Application Review Process is provided below for applicants and/or private citizens who wish to participate in the City’s CDBG program:
Upon receipt of an Application received prior to the deadline, Housing & Neighborhood Services staff will log the Application and mark it with the date and time received. Staff will initially review all Applications for completeness, conformance with technical criteria as listed in these Guidelines and the Application itself, and if appropriate, will transmit a copy of the Application submittal to appropriate City departments for additional review. Criteria for review will include, but not be limited to:
o Eligibility of the activity under CDBG regulations;
o Compliance with a CDBG national objective;
o Consistency with the priorities and specific Goals established in the Five-Year Consolidated Plan;
o Prior experience with CDBG and/or other grant programs; o Prior experience in the community;
o Agency administrative and financial capacity to carry out the proposed activity; o Pre-award risk analysis based on a variety of criteria including but not limited to funding, subrecipient history, complexity of the project; o Feasibility and appropriateness of the project budget; and o Appropriateness of the design of the proposed project or program delivery approach. Staff may request additional information from applicants for further clarification as required. This review summarizes the project and notes any concerns with the proposal. An internal review committee may be utilized. If utilized, review committee members will be provided with the Applications, the technical review summaries, and any agency response, if additional information was requested.
Staff (and the review committee, if any) will review each eligible Application, and will forward recommendations to City Council at a Public hearing. Staff will make copies of all eligible Applications available for City Council and public review 72 hours prior to the Public hearing(s).
The City Council will review and adopt final allocations to projects and programs at a Public Hearing (typically held in late April/early May). These final allocations will be included in the One Year Action Plan that will be submitted to HUD on or before May 15, 2022 (or a later date if justified by a CPD Notice).
Once the One Year Action Plan is approved by HUD and all other stated conditions are met (including completion of the required Environmental Review), project activities may begin (but no earlier than July 1, 2022).
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TECHNICAL ASSISTANCE AVAILABLE
The CDBG program staff are available to provide technical assistance in determining project/program eligibility and to ensure proposed projects are in compliance with the CDBG National Objectives and other regulations established by HUD. Staff cannot provide assistance in developing a program or writing the Application.
Technical assistance is available from 8:00 a.m. to 4:00 p.m. Monday through Friday. Please call Housing and Neighborhood Services staff at (760) 839-4057 for assistance by telephone or to make an appointment in the office.
SUMMARY OF ADDITIONAL CDBG PROGRAM REQUIREMENTS
Congress created the CDBG program and numerous federal regulations apply.
Agencies that are funded (subrecipients) will be required to execute a contract with the City listing their responsibilities for meeting all federal requirements along with the City.
Affirmative action, nondiscrimination in services and employment practices and ADA requirements apply; certification of a Drug Free Work Place is required. Subrecipients and contractors must not be de-barred.
Funded agencies cannot be indebted to the IRS or to the City of Escondido nor have judgments or liens.
The City’s Section 3 and MBE/WBE goals must be met to the greatest extent feasible. Subrecipients and contractors must have a verifiable DUNS number. City and HUD shall have access to the project records and payroll records as set forth in the funding agreement.
Subrecipients are responsible for Worker's Compensation benefits, or claims by employees and must indemnify and hold the City harmless against any and all claims. CDBG funds are reimbursed monthly and based upon required source documentation, i.e. timecards, cancelled checks, receipts, bank statements, etc. Quarterly and Annual performance reports are required (see Attachment C for additional information).
Proof of Insurance is required if funding is awarded. (See Attachment D for additional information).
Subrecipients will be subject to desk and/or on-site monitoring throughout their contract period.
Organizations are strongly discouraged from applying for funds unless they are ready to implement the activity proposed for funding. If contracts are not signed within 6 months of the start of the fiscal year (December 31, 2021), funds are subject to cancellation.
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Subrecipients will be subject to timeliness of funds. Subrecipient should design their program with an eye to minimize the amount of CDBG funds that will sit idle for a long period of time. The City will require that the subrecipient submit reimbursements on a monthly or quarterly basis in order to meet this criteria.
PREMATURE COMMITMENT OR EXPENDITURE OF FUNDS PROHIBITED IMPORTANT: Program expenses that have been committed or expended prior to HUD approval of the One Year Action Plan, City Council approval of the project allocation, NEPA environmental clearance, and execution of the CDBG contract are not eligible for reimbursement.
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Attachment A – Area Median Income Limits for San Diego County (subject to annual revisions)
ELIGIBLE INCOME LIMITS CHART 2021
San Diego-Carlsbad-San Marcos
HOUSEHOLD SIZE
1 2 3 4 5 6 7 8
30%
Extremely
low $25,450 $29,100 $32,750 $36,350 $39,300 $42,200 $45,100 $48,000 50% Low $42,450 $48,500 $54,550 $60,000 $65,450 $70,300 $75,150 $80,000 80% Moderate $67,900 $77,600 $87,300 $97,000 $104,800 $112,550 $120,300 $128,050 Income Limits effective April 1, 2021
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Attachment B – Map of Low-Mod Census Tracts
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Attachment C – Reporting Requirements for Funded Agencies Applicants receiving FY 2022-2023 City of Escondido Community Development Block Grant (CDBG) funding must be aware of the following additional reporting requirements.
Why Accurate Reports are Necessary:
CDBG funds are allocated to projects and programs throughout the City of Escondido; however the funds originate at the federal level, through the U.S. Department of Housing and Urban Development (HUD). The City of Escondido is required to report to HUD the accomplishments of each grant given to agencies.
How long will CDBG-Funded Agencies be required to report:
Agencies funded for Public Services programs : Agencies will be required to submit Quarterly and Annual performance reports on forms provided by the City for the entire fiscal year in which the program is funded.
Agencies funded for Public Facility improvement projects: Pursuant to the CDBG regulations, any real property acquired or improved in whole or in part with CDBG funds in excess of $25,000 shall be used to meet one of the national objectives (benefit low/moderate income persons) until five years after expiration of the contract with the City. Therefore, agencies receiving this category of funding will be required to submit Quarterly and Annual performance reports on forms provided by the City for the duration of the contract and for five years after completion of the project.
Additionally, agencies must provide a copy of financial audits for any year in which CDBG funds were used. Typically, this will mean that agencies funded for Public Service programs will be required to provide an audit for FY 2022-2023. Construction projects which are not completed in a single fiscal year will be require multiple audits to be submitted . Failure to provide appropriate financial statements will make an agency ineligible in future years.
What reports will be required of CDBG-Funded Agencies:
All projects that provide benefit to LMI residents (except those providing an Area Benefit) will be required to collect, and keep records of specific demographic data about their program participants, and to report that data quarterly and annually on forms provided by the City (the Progress Report).
Intake and/or qualification procedures must be in place (or be developed) to capture demographic data and other information from each participant. Required report measures include:
The number of persons assisted;
Income levels of all persons assisted (30, 50, or 80% of the median income, adjusted for household size; see Attachment A – Area Median Income Limits table); Race and ethnicity of the persons assisted;
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The number of persons assisted that are homeless;
The number that are disabled; and
The number that female heads-of-household.
In addition, a narrative report must accompany each Progress Report and can be tailored to report progress on the objectives of the contract with the City, as well as analyze the benefits of the program to the community. Report measures will be negotiated and may include:
The progress of the activity ( include at least one performance measurement: progress of construction, % of completion, etc.);
Amount of Other funds leveraged for the program (how and to what extent CDBG funds were helpful in attracting other grant or donor funds); Additional measures of success that were volunteered in the original project Application to attract CDBG funding (number of parents attending mee tings, number of new jobs created, etc.)
Additional monthly reporting may be required for projects meeting Goal 1 – homeless services.
Reimbursement Claims:
This is a cost reimbursement program. No funds will be provided to grantees upfront. Back-up documentation will be required for all costs submitted for reimbursement. Only those items included in the approved budget, or through an approved budget amendment, will be eligible for reimbursement.
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Attachment D – Insurance Requirements for Public Service Proposals
If the Application is funded, the agency will enter into a contract with the City of Escondido. All City contracts require insurance and indemnification language so that the responsibility for paying claims is established with the agency and ensures that financial resources are available to pay claims. The subrecipient shall agree to provide an acceptable certificate of insurance and endorsements evidencing coverage. The insurance requirements listed are minimum requirements and the City in no way warrants that the minimum limits are sufficient to protect the agency from liabilities that might arise from carrying out the funded program. The agency is free to purchase additional insurance, as they deem necessary.
Depending upon the program activities and the program beneficiaries, several types of insurance coverage will be required. This information is provided to help in the development of the overall operating cost of the proposed program and to ensure sufficient funds are set aside for insurance.
Minimum Scope and Limits of Insurance - coverage with limits of liability not less than those stated below are required for funded CDBG Public Service programs.
Commercial General Liability . Insurance Services Office (“ISO”) Form CG 00 01 co vering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate.
Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if Subrecipient has no owned autos, hired (Code 8) and non-owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the City and approved in writing by the City’s Risk and Safety Division.
Workers’ Compensation. Worker’s Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
Professional Liability (Errors and Omissions). Professional Liability (Errors and Omissions) appropriate to Subrecipient’s profession, with limits no less than $2,000,000 per occurrence or claim and $2,000,000 aggregate.
If Subrecipient maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Subrecipient.
NOTICE OF CANCELLATION: Insurance policies must be the appropriate coverage for and shall not be suspended, voided, canceled, reduced in coverage or endorsed to lower limits.
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ACCEPTABILITY OF INSURERS: Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-:
FSC VII, or as approved by the City.
ADDITIONAL INSURED STATUS: Both the Commercial General Liability and the Automobile Liability policies must name the City (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a separate endorsement page.
The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability endorsement shall be at least as broad as ISO Form CA 20 01.
VERIFICATION OF COVERAGE: The City must receive certificates of insurance (ACORD form or equivalent approved by the City) as required. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage. The City of Escondido must be listed as an additional insured (to the extent City is indemnified pursuan t to the Indemnity Provisions herein) on all certificates of insurance.
PRIMARY COVERAGE: Subrecipient’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the City, its officials, officers, agents, employ ees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of Subrecipient’s insurance and shall not contribute with it.
SUBCONTRACTORS: If applicable, Subrecipient shall require and verify that all subcontractors maintain insurance meeting all the requirements stated within this Agreement, and Subreciepinet shall ensure that the City (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
WAIVER OF SUBROGATION. Subrecipient hereby grants to the City a waiver of any right to subrogation that any insurer of Subrecipient may acquire against the City by virtue of the payment of any loss under such insurance. Subrecipient agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the Subrecipient, its agents, representatives, employees, and subcontractors.
NO LIMITATION OF OBLIGATIONS. The insurance requirements in this Agreement, including the types and limits of insurance coverage Subrecipient must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by Subrecipient pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification.
Failure to comply with any of the insurance requiremen ts in this Agreement, including, but not limited to, a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. In the event that Subrecipient fails to comply with any such Attachment 3
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insurance requirements in this Agreement, in addition to any other remedies the City may have, the City may, at its sole option, (i) immediately terminate this Agreement; or (ii) order Subrecipient to stop work under this Agreement and/or withhold any payment that becomes due to Subrecipient until Subrecipient demonstrates compliance with the insurance requirements in this Agreement.
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Housing & Neighborhood Services Division
FY 2022-2023 Community Development
Block Grant (CDBG) Program Funding
Application (CFDA 14.218)
(FOR PUBLIC SERVICES AND PUBLIC FACILITIES APPLICATIONS AND PROPOSALS) Submission Deadline:
Monday, February 28, 2022, 5:00pm
For technical assistance, contact:
Jonathan Lung, Management Analyst
Neighborhood Services Division
201 N. Broadway
Escondido, CA 92025
(760) 839-4057
[email protected]
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GUIDELINES FOR COMPLETION OF CDBG APPLICATION
GUIDELINES FOR SUBMITTAL OF PROPROSAL
Applications must be received no later than 5:00 p.m. on Monday, February 28, 2022, at the City of Escondido Housing & Neighborhood Services Counter at the address listed below.
Submit an original set and three (3) copies and 1 electronic copy:
City of Escondido
Housing & Neighborhood Services Division
Attn: Housing & Neighborhood Services Manager
201 N Broadway
Escondido, CA 92025
GUIDELINES FOR PREPARATION OF PROJECT NARRATIVE
A. Statement of Problem/Need : Describe the problem or need that the proposed activity is intended to address, based on your understanding of the priorities.
B. Target Population: Describe the characteristics of the population to be served (i.e., homeless, youth, seniors, persons with disabilities, etc.) or the area to be benefited, and how this population meets CDBG guidelines, including any required income verification.
C. Project Goal and Objectives:
1. State the overall goal of the project and list up to 3 specific objectives ; describe the method of approach to be used to accomplish the goals and objectives. One of the objectives will be used for performance measurement during the year (measuring impact of the program).
2. Indicate the number of service units that will be provided (for example, number of counseling sessions, health screenings, hours of after school activities, etc.), the number of unduplicated clients who will be served, the number of unduplicated clients who are low/moderate-income, and the number of unduplicated clients who are residents of Escondido.
D. Project Description:
1. Describe the work to be performed, activities to be undertaken, or the services to be provided.
2. Describe the procedures for documenting program participation, including the racial, ethnic, income and gender characteristics of participants.
3. Describe the relationship of the proposed activity to other community services addressing the same or similar problem.
4. Describe the level and form of coordination with other agencies or organizations in this project.
5. Describe who will be involved with the project. If applicable, attach letters of intent from each participating agency specifying the agency’s role, function and contributions to the project.
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E. Previous Accomplishments:
1. If the project has previously received City of Escondido CDBG funding, describe the accomplishments achieved with that funding and the degree to which the objectives were met. If there were difficulties in achieving the objectives, describe how these difficulties or obstacles will be overcome.
2. If this is a new project, describe how the agency has managed similar projects in the past, the funding sources used in those projects and the accomplishments achieved.
F. Evaluation:
1. Describe how the project will be evaluated and how the agency will determine outcomes of the project, i.e., the positive results that the project is intended to accomplish.
Outcomes (measuring impact of the program) must relate back to objectives and the overall goal.
2. State one objective (from C1) that will be used for performance measurement.
GUIDELINES FOR PREPARATION OF AGENCY INFORMATION SUMMARY A. Background:
1. Include the agency’s mission statement.
2. Indicate the length of time the agency has been in operation and how long the agency has provided services to Escondido residents.
3. Describe the type of services currently being provided by the agency, including the number and characteristics of clients served.
B. Qualifications:
1. Discuss the agency's capacity to develop, implement and adminis ter the proposed project.
2. Discuss any other projects the agency has managed that are similar to the proposed project.
3. Provide a list of staff persons who will be involved with the project and their qualifications for this work.
C. Financial:
1. Describe the agency's fiscal management, accounting systems, and audit practices.
2. Describe the experience of the agency in managing federal or State grants.
GUIDELINES FOR PREPARATION OF EXHIBIT A SCOPE OF WORK
The work plan should stand as an independent explanation of your proposal, i.e., a reader should be able to clearly understand what you are proposing to do, for whom, how you propose to do it, and by when, without referring to the project narrative. Using the attached work plan sample, Example 1, and guidelines below, describe your implementation schedule.
GOALS
A goal is a general statement of how a group of individuals, system organization or community will be different as a result of your project. The statement describes who/what will be affected, in what respect they will be change/improved, and how this change will be accomplished.
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Example:
The goal of the La Vida Buena Project is to increase years of healthy life among low- income Hispanic residents of Escondido by reducing sedentary lifestyles to decrease the risk of chronic diseases.
OBJECTIVES
Objectives are specific statements about what will be done to accomplish goals. They answer the basic questions of who, what, how and when. Objectives are specific, measurable and time-limited.
Often a single goal has multiple objectives. Please complete a separate work plan form for each objective.
Example:
Involve 550 Hispanic adults in regular aerobic exercise by increasing the availability and accessibility of these activities in Escondido by June 30, 2022.
KEY ACTIVITIES
The Key Activities section of the work plan should provide a detailed description of the steps you will follow to accomplish the stated objectives. This section should demonstrate that you have thoroughly considered your proposal and clearly identified how you intend to implement it if funded. See Example 1 for specific examples.
GUIDELINES FOR PREPARATION OF THE BUDGET
THE BUDGET CONSISTS OF TWO PARTS -- A LINE ITEM BUDGET AND A BUDGET NARRATIVE.
LINE ITEM BUDGET
Please provide an itemized budget detaili ng all project expenses. Include the total cost of the project and indicate the amount of CDBG funds and other funding sources to be allocated to each line item. Please develop budget line items appropriate to your project expenses. Line items are not specified to accommodate the variety in types of project expenses submitted for CDBG funds. Example 2 is provided as an example and is not intended to serve as a model.
BUDGET NARRATIVE
Please provide a description and justification of each budget line item. In general, each narrative statement should describe:
- what the specific item is
- how the specific item relates to the project
- how the amount was arithmetically determined
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Please refer to Example 3 for an example of the level and type of information to be included in the budget narrative.
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CITY OF ESCONDIDO
COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
APPLICATION FOR FY 2022-2023 FUNDS
Name of Organization:
Mailing Address:
Street City/State Zip
Phone Number: Fax:
Contact Person: Title:
E-mail address:
Project Name:
Project Address (if different than above):
Project Manager:
Brief Summary of the Project: ___________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Total Project Cost: $
Less Other Funding Sources (Required):
$
$
Total 2022-2023 CDBG Funding Request: $
Which National Objective will be met?
Which local priorities will be met?
Number of unduplicated clients to be served during the year:
Has agency received past CDBG or human services funding through the City of Escondido? yes no
If yes, please identify year, amount, and purpose (2000 to present only). __________________________
Signature of Agency Director or Board President Date
Print Name and Title:
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Application Document Checklist
A complete application for CDBG funding shall include the required information listed below.
Applications/proposals should be presented in the following sequence:
Project Narrative (Statement of Problem/Need, Target Population, Project Goal and Objectives, Project Description, Previous Accomplishments, and Evaluation) Agency Information Summary (Background, Qualifications, Financial) Application for Funds form (form on Page 4 of this packet) Exhibits:
A. Project Work Plan (form on Page 6)
B. Project Line Item Budget and Budget Narrative (form on Page 7, plus narrative) C. Environmental Review form (form on Page 8)
Current List of Agency’s Board of Directors
Proof of Tax Exempt Status (IRS letter)
Letters of Collaboration (if applicable)
Articles of Incorporation of Agency
By-laws of Agency
Request for Taxpayer Identification Number
Copy of most recent financial audit
Letter from Board of Directors designating the authorized agent for the contract City of Escondido Business License (required, unless deemed exempt) Proof of registration in the federal System for Award Management (SAM.gov) and ability to accept federal contracts
Applications which are missi ng any of the above information will be deemed "incomplete" and may not be considered. City reserves the right to request clarification or any additional information deemed necessary from the applicant.
Insurance requirements must be met before execution of the contract. Insurance is an eligible expense. (Guidelines for Obtaining Approval of a Certificate of Insurance Naming the City of Escondido as Additionally Insured are available from the Housing and Neighborhood Services Division Counter or, (760) 839-4057. An original Certificate and Additional Insured Endorsement must be submitted prior to contract execution.)
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EXHIBIT A
PROJECT WORKPLAN
Fiscal Year 2022-2023
Organization:
Project Title:
Goal Statement:
Objective:
Key Activities Date
If the proposed program has more than one objective, please submit a separate work plan form for each objective. You may wish to make a copy of this page prior to completion.
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EXHIBIT B
BUDGET
Fiscal Year 2022-2023
Organization:
Project Title:
CDBG OTHER FUNDS PROJECT
ITEM FUNDING AMOUNT SOURCE TOTAL
Personnel
Salaries/Labor
Benefits
Other
Program Expenses
Operating Expenses
Professional Services
Total
A budget narrative must accompany this form.
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EXHIBIT C
ENVIRONMENTAL REVIEW SECTION
FOR COMPLIANCE WITH FEDERAL REGISTER 24 CFR PART 58
1. Project Name:
2. Supporting Agency/Representative:
3. Contact Name: Phone/FAX:
4. Detailed Project Description (or attachment):
5. Location of Proposed Site (address):
6. *Assessor Parcel Number:
7. *Assessor Parcel Map - to be attached:
8. *Zone and General Plan designation:
9. *Permitted Use or Conditional Use:
10. **Is the site within a 100-year or 500-year floodplain_______ If yes, give community number and map panel number: _________________________
11. Size of Site:
12. Site of Facility (proposed or existing):
13. Size of Expansion (if proposed):
14. Number of Staff:
15. Number of Clients:
16. Schedule - Days & Hours of Operation:
17. Client Capacity & Staff Level:
18. Client Profile:
19. Amount of Funding Requested:
20. Is there more than one funding year involved?
* Information available through City of Escondido’s Planning Department (760) 839 -4671 ** Information available through City of Escondido’s Engineering Department (760) 839 -4651 x3823
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EXAMPLES
Example 1
PROJECT WORKPLAN
Organization: ABC Agency Fiscal Year 2022-2023 Project Title: Project Help
Goal Statement: Reduce the risk of violent crime and drug/alcohol use among middle school youth from low-income families in Mission Park Area by improving learning, social and parenting skills.
Objective: #3, By June 30, 2023, 100 low-income parents of Mission Middle School youth will have enrolled and 80 parents will have completed 4 parent education sessions.
Key Activities Date
3.1 Conduct needs assessment with target
population gatekeepers
10/31/2022
3.2 Conduct focus groups with parents of
participating youth to determine most
effective approaches and strategies
11/30/2022
3.3 Design parent education curriculum
and program structure and materials
01/14/2023
3.4 Train staff and parent volunteers to
lead/facilitate parent education
programs
02/01/2023
3.5 Pilot parent education program at
Grant Middle School
02/15/2023
3.6 Graduation and evaluation 05/01/2023
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Example 2
BUDGET
Organization: ABC Agency _______ Fiscal Year 2022-2023 Project Title: Project Help
CITY OTHER FUNDS PROJECT
ITEM FUNDING AMOUNT SOURCE TOTAL
PERSONNEL
A. Salaries
1. Executive Director
$3,000/mo @ 5% for 12
mos
1,800 SDCF 1,800
2. Project Coordinator
$2,000/mo @ 100% for
11 mos
11,000 11,000 SDCF 22,000
3. Instructors
3 @ $10/hr. 4hrs/wk,
18 weeks
2,160 2,160
B. Benefits
20% of salaries 2,630 2,560 ABC 5,190
OPERATING EXPENSES
A. Space Rent 1,080 1,080
B. Materials 175 175
C. Transportation 135 135
D. Incentives 1,890 ABC 1,890
TOTALS 17,180 17,250 34,430
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Example 3
BUDGET NARRATIVE - PROJECT HELP
OVERVIEW
The total cost of Project Help is $34,430. This proposal requests $17,180 in CDBG Public Services funding from the City of Escondido. The agency also plans to generate $17,250 from other sources to fully support Project Help. ABC Agency plans to provide $4,450 from its reserve fund and has applied to the San Diego Community Foundation for the balance of $12,800 to fully fund Project Help.
EXPENSES
I. PERSONNEL
A. Salaries
1. Executive Director - Provides general oversight and fiscal management for the project. $3,000/month @ 5% for 12 months = $1,800.
2. Project Coordinator - Provides program development and administrative management of project. $2,000/month @ 100% for 11 months = $22,000.
3. Instructors - Provide parent education classes. 3 instructors @ $10/hr, 4 hrs/wk, 18 weeks = $2,160.
B. Benefits
Includes health and dental coverage, social security, disability insurance and life insurance. Estimated at an average of 20% of salaries. $25,960 x .20 = $5,190.
II. OPERATING EXPENSES
A. Space Rent
Rental of classroom space for parent education sessions. 3 rooms/week @ $20 x 18 weeks = $1,080.
B. Materials
Paper, notebooks and duplicating expenses to produce 100 parent notebooks and 8 facilitator notebooks. Estimate 100 @ 50/pgs @ .03 + 8 @ 100/pgs @ .03 = $175.
C. Transportation
Mileage for parent volunteers. 3 volunteers @ 10 mi/wk @ .25/mi x 18 wks = $135.
D. Incentives
Cash stipends and discount coupons for focus group participants (12), childcare volunteers (5) and parent facilitators (4). Estimate 21 stipend s @ average $5 x 18 weeks = $1,890.
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CITY OF ESCONDIDO
HOUSING & NEIGHBORHOOD SERVICES DIVISION
REQUEST FOR PROPOSAL (RFP)
for the U.S. Department of Housing and Urban Development Emergency Solutions Grant (ESG)
CFDA – 14.231
RFP RELEASE DATE:
January 27, 2022
PROPOSAL SUBMITTAL DATE:
February 28, 2022
City of Escondido
Housing & Neighborhood Services Division
201 N. Broadway, Escondido, CA
(760) 839-4057
It is the intention of the City of Escondido to comply with the Americans with Disabilities ACT (ADA). To request this document in alternate formats, or to request special assistance at a City meeting, please contact Dulce Salazar at (760) 839-4057 or via e-mail at [email protected].
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Section One – Request for Proposal (RFP)
INTRODUCTION
Under this RFP:
The City of Escondido (City) Housing and Neighborhood Services Division ( HNS) is accepting proposals from eligible organizations providing assistance to persons experiencing homelessness or at-risk of homelessness within the City. Funds to be used for this RFP are from the federal Emergency Solutions Grant (ESG) Program.
The ESG program provides funding to meet the following objectives: (1) engage homeless individuals and families living on the street; (2) help operate emergency shelters for homeless individuals and families; (3) provide essential services to shelter residents, ( 4) rapidly re-house homeless individuals and families, and ( 5) prevent families/individuals from becoming homeless.
Homeless Management Information System (HMIS) participation is required by the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act).
BACKGROUND
The HEARTH Act, enacted into law on May 20, 2009, consolidated three separate homeless assistance programs, administered by HUD under the McKinney -Vento Homeless Assistance Act, into a single grant program. One of the main revisions in the HEARTH Act was the revision of the existing federal Emergency Shelter Grant program into the new Emergency Solutions Grant (ESG) Program. The ESG regulations can be found at 24 Code of Federal Regulations (CFR), Part 576.
FUNDING AVAILABILITY: Up to $140,000
The City anticipates receiving ESG funds t hrough the U.S. Department of Housing and Urban Development (HUD). The specific amount of funding to be received from HUD for FY 2022-2023 is yet to be determined; however, the City anticipates being able to commit approximately $140,000 in one-time ESG funds available under this RFP. These funds are available to non- profit organizations and/or public entities sponsoring projects within the City. Funds under this RFP must be implemented and fully expended during Fiscal Year 2022-2023 (July 1, 2022 - June 30, 2023). The contract term will be limited to 12 months, ending June 30, 2023.
PRIORITIZATION OF ESG OBJECTIVES
For this RFP, the following ESG objectives have been prioritized in the order below:
1. Homelessness prevention,
2. Emergency shelters and essential services to shelter residents,
3. Street outreach to unsheltered individuals, and families, and
4. Rapid re-housing for homeless individuals and families.
Proposals for projects that will address higher priority objectives will be receive priority ranking.
No more than 60% of ESG funds can be allocated to Priorities 2 & 3 combined.
NOTE: Due to the limited amount of ESG funds available, applications for rehabilitation, renovation or conversion will not be accepted at this time.
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CONDITIONS
The City reserves the right to determine which funding source will be used to fund specific proposals, negotiate and award contracts to multiple applicants, and request additional information from applicants. By the act of submitting a proposal, applicants acknowledge and agree to the terms and conditions of this RFP and to the accuracy of the information they submit in response. The City reserves the right to reject any and all submittals, waive any irregularities in the submittal requirements, or cancel this RFP at any time. All submittal packages become the property of the City.
All requirements of the ESG Program apply under this RFP. The HEARTH Act significantly revised the ESG Programs regulations at 24 CFR Part 576 and established new requirements for the ESG Program. HNS recommends that all organizations applying for funding review ESG Program eligibility criteria carefully.
PROPOSAL REVIEW
Proposals are subject to preliminary review for threshold criteria. Applicants providing incomplete or ineligible proposals will be so notified. A determination will be made concerning the consistency of the proposal with the priorities outlined in the City of Escondido 2020-2024 Consolidated Plan with amendments.
Following the above review, the proposal and HNS staff comments will be considered by a RFP Review Panel. The RFP Review Panel will make funding recommendations to the Escondido City Council at for consideration on April 2 0, 202 2 (tentative date). Applican ts are encouraged to attend and participate at this public meeting.
TECHNICAL ASSISTANCE, CLARIFICATION AND ADDENDA
Requests for clarifications regarding this RFP should be directed to Jonathan Lung at (760) 839- 4579, or by email at [email protected] by February 18, 2022. Responses will be posted on the City’s website at www.escondido.org/neighborhood-services.aspx.
Substantive changes in the submittal requirements, if any, will be made and issued in the form of an addendum posted on the City of Escondido website.
SUBMITTALS
Applications must be received no later than 5:00 p.m. on Monday, February 28, 2022, at City of Escondido Housing & Neighborhood Services Counter at the address listed below.
Submit an original set and three (3) copies and 1 electronic copy:
City of Escondido
Housing & Neighborhood Services Division
Attn: Housing & Neighborhood Services Manager
201 N Broadway
Escondido, CA 92025
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Section Two - RFP Funding Source
EMERGENCY SOLUTIONS GRANT PROGRAM
The federal ESG Program regulations are located at 24 CFR Part 576 Under this RFP, ESG funds will be awarded to non -profit organizations and/or public entities sponsoring projects within the City of Escondido. ESG funds will be awarded for a maximum of twelve months. All funds awarded under this RFP must be fully expended by June 30, 2023.
SUMMARY OF ESG ELIGIBLE PROJECT COMPONENTS
Project Component Main Eligible Activities
Emergency Shelter* Renovation (Major Rehabilitation and Conversion), Essential Services, Shelter Operations, and Assistance required under URA. See 24 CFR 576.102
Rapid Re-Housing Assistance Housing Relocation and Stabilization Services Financial Assistance: Moving Costs, Rent Application Fees, Security Deposits, Last Month’s Rent, Utility Deposit and Utility Payment. Assistance may also include a one -time payment of rental arrears for up to 6 months.
Services: Housing Search, Housing Placement, Housing
Stability, Mediation, Legal Services, Credit Repair, Budgeting, Money Management.
Rental Assistance: Short - Up to 3 months, Medium – 4-24 months. See 24 CFR 576.103, 576.105, and 576.106.
Street Outreach* Essential Services necessary to reach out to unsheltered homeless youth, individuals and families, connect them with emergency shelter, housing, or critical services, and provide them with urgent, non -facility-based care. Component services generally consist of engagement, case management, emergency health and mental health ser vices, and transportation. For specific requirements and eligible costs, see 24 CFR 576.101 Homelessness Prevention Same activities as Rapid Re-Housing HMIS** Grant funds may be used for certain HMIS and comparable database costs, as specified at 24 CFR 576.107
* ESG regulations limit street outreach and emergency shelter activities (combined) to no more than 60% of the fiscal year grant.
** HMIS participation is required as a project component within all proposals, but may not be the sole project component.
See HUD’s ESG Program Components Quick Reference for more information.
NOTE: Due to the limited amount of ESG funds available, a pplications for re habilitation, renovation or conversion will not be accepted at this time.
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ELIGIBLE COSTS:
As of December 5, 2011, the Department of Housing and Urban Development issued an interim in regards to Emergency Solutions Grant funding. Please refer to Federal Register Notice Vol. 76, No. 233.
https://www.hudexchange.info/resource/1927/hearth-esg-program-and-consolidated-plan-conforming- amendments/
https://www.hudexchange.info/resources/documents/ESG-Program-Components-Quick-Reference.pdf https://www.hudexchange.info/resources/documents/EmergencySolutionsGrantsProgramFactSheet.pdf
COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REGULATIONS:
Projects that are awarded ESG, funding must act in accordance with all relative federal, State of California, and City of Escondido laws, rules, and regulations. These include but are not limited to the following:
• 24 CFR Part 1 and 6, Public Law 90 -284, Fair Housing Act – The regulations issued following Title VI of the 1964 Civil Rights Act and Section 109 of the 1975 Housing and Community Development Act that prohibits discrimination in HUD programs based on sex, race, color, national origin, and religion and requires all programs and activities to be administered in a manner to affirmatively further the policies of the Fair Housing Act. • 24 CFR Part 107 and 108 – The regulations issued following Executive Order 11063 and Executive Order 12892 which prohibit discrimination and promote equal opportunity in housing.
• Section 504 of the Rehabilitation Act of 1973, 24 CFR Part 40 and 41 – The regulations that set forth policies and procedures for the enforcement of standards and requirements for disabled accessibility. The Architectural Barriers Act of 1968 and the Americans with Disabilities Act provide additional laws on accessibility a nd civil rights to individual with disabilities.
• Age Discrimination Act of 1975 (42 U.S.C. 6101) – The regulations that prohibit discrimination on the basis of age.
• 29 CFR Parts 3 and 5 – The regulations on labor standard provisions that include the payment of prevailing wages on federally assisted projects as mandated by the Davis - Bacon Act and Contract Work Hours and Safety Standards Act. 24 CFR Part 70 provides information on the use of volunteers.
• Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c) – The regulations on contracts for construction or repair awarded by subrecipients shall include a provision for compliance.
• 24 CFR Part 58 – The regulations prescribing the Environmental Review procedure under the National Environmental Policy Act of 1969.
• National Flood Insurance Act of 1968, 24 CFR Part 55 under Executive Order 11988 – The regulations for proposed projects and properties located in a floodplain. • 36 CFR Part 800 – The regulations outlining the procedures for the protection of historic and cultural properties.
• Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 – the policies for displacement, relocation assistance, and real property acquisition as defined by 42 U.S.C. 4601 (URA) and implementing regulations issued by the Department of Transportation at 49 CFR part 24 and section 104(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(d)).
• 24 CFR Part 7 and 41 CFR Part 60 – The regulations outlining equal employment opportunity without regard to race, sex, color, religion, age, national origin, and disability in federally assisted construction contracts.
• 24 CFR 135 – Regulations outlining requirements of Section 3 of the Housing and Urban Development Act of 1968 providing for economic opportunities for low and very low local Attachment 5
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residents. All projects must, to the greatest extent feasible, provide opportunities for training and employment for low and moderate income persons residing within the City of Escondido, and contracts or work in connection with the project be awarded to eligible business concerns which are located in or owned in substantial part by persons residing in the City of Escondido.
• Residential Lead Based Paint Ha zard Reduction Act of 1992 – The regulations implemented by 24 CFR Part 35, Subpart B imposes certain requirements on disclosure of lead based paint hazards.
• 24 CFR Part 24 – The regulations that prohibit use of debarred or suspended contractors on federally assisted projects and Drug Free Workplace requirements, issued according to Executive Order 12459.
• 2 CFR Part 200 – Uniform Administrative Requirements , Cost Principles and Audit Requirements for Federal Awards . These regulations include Conflict of Interest and Procurement provisions under 2 CRF 200.112 and 2 CRF 200.317-326. • 2 CFR Part 200 Subpart E – The regulations that identify cost principals for nonprofits. • 2 CFR Park 200 Subpart F – The regulations concerning annual audits. • 24 CFR Part 49 – The regulations on eligibility restrictions for certain resident aliens. • 24 CFR Part 87 and Byrd Anti -Lobbying Amendment (31 U.S.C. 1352) – The regulations for restrictions on lobbying and required certifications. • Executive Order 13170 – The regulations on increasing opportunities and access for Disadvantaged Businesses.
• HUD Requirements – All other applicable required reports, circulars, and procedures. • Administrative Procedures – The rules issued by the City of Escondido in relation to contracts, process, and procedures.
• Clean Air Act (42 U.S.C. 7401) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) – The regulations that require compliance with all applicable standards, orders, or regulations issued following the rule.
The following resources are available on HUD’s website for your use:
• ESG Regulations: Interim Rule:
https://www.govinfo.gov/content/pkg/FR-2011-12-05/pdf/2011-30938.pdf https://www.govinfo.gov/content/pkg/CFR-2018-title24-vol3/xml/CFR-2018-title24- vol3-part576.xml#seqnum576.409
• “Monitoring Checklists”:
https://www.hud.gov/program_offices/administration/hudclips/handbooks/cpd/6509.2
• The Code of Federal Regulations (CFR) and Executive Orders may be found at:
CFR: https://www.gpo.gov/who-we-are/our-agency/mission-vision-and-goals Executive Orders: http://www.archives.gov/federal-register/index.html
• Emergency Solutions Grant: https://www.hudexchange.info/programs/esg/
• Limited English Proficiency Requirements:
https://www.lep.gov/guidance/HUD_guidance_Jan07.pdf
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Section Three - Proposal Parameters
REQUIREMENTS FOR SUBMITTAL
To be responsive, a complete RFP Application must contain the following items:
A. Affordability
Attachment A outlines income eligibility levels.
“Extremely-Low Income” households are households whose adjusted household income is at or below 30% of the area median income (“AMI”).
“Very-Low Income” households are households whose adjusted household income is between 31% and 50% of AMI.
"Low-income" households are defined here as households whose adjusted household income is between 51% and 80% of AMI.
"Median income" is defined and published periodically by HUD for the San Diego Standard Metropolitan Statistical Area.
B. Project Location
Projects must be located within the jurisdiction of the City of Escondido or serve residents of the City. Describe the project location and service area in as much detail as possible, including the street address, cross streets and Assessor Parcel Number. All homeless prevention activities must assist households within the incorporated areas of the City of Escondido.
C. Consistency with the FY 2020-24 City of Escondido Consolidated Plan Applicants are required to demonstrate that their project is consistent with the City of Escondido’s Consolidated Plan and proposed amendments. Item 5 in the RFP application addresses this requirement.
D. Match Requirements
Section 576.201 of ESG re gulations requires a 100% funding match. For this RFP, applicants must match dollar-for-dollar the ESG funding provided by the City with funds from other public or private sources.
Qualifying project match includes, but is not limited to, cash and value of donated materials and labor. Proposed match sources must be approved and consistent with program regulations.
E. Board Resolution
An applicant must submit a resolution of its Board of Directors authorizing the submittal of a proposal and identifying who is authorized to execute documents. Use EXHIBIT 2.
F. Articles of Incorporation and By-Laws
All proposals must include current Articles of Incorporation and By-Laws for the organization.
G. Audited Financial Statements - Submit the following information for the last two (2) fiscal years:
Audited financial statements of the entire organization with the applicable notes; Independent Auditor’s Report on Compliance and Internal Control over Financial Reporting based on an Audit of the Financial Statements in Accordance with Government Accounting Standards.
Independent Auditor’s Statement of Findings and Questioned costs.
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H. Evidence of Funding Commitments
Applicants must demonstrate reasonable and efficient costs of operations and project implementation. The proposal must identify secured matching funds. Letters from other funding sources must include the name, title, and telephone number of the responsible contact person and funding amount.
I. Cost Allocation Plan
All applicants must submit a cost allocation plan that clearly demonstrates how direct and indirect costs are shared between the project and other agency projects.
J. Position Descriptions
Provide a position description for all proposed staffing positions funded by the project.
K. Organizational/Staffing Chart
Applicants must include an organizational/staffing chart that descr ibes the overall organization and illustrates the relationship of the proposed program with other organizational divisions, programs and sections. Indicate the lines of organizational management, authority, and responsibility. The staffing chart identifies program staff positions (by name and title, if known) and reporting responsibility.
L. Project/Program Description
Applicant must describe the proposed project/program (work to be performed, components to be undertaken, or services to be provided) and also describe specifically how the requested ESG funds will be used. Describe how this project will benefit persons experiencing homelessness or at risk of homelessness. Describe the problem or need that the proposed project is intended to address.
M. Homeless Management of Information System Participation ESG recipients will assure compliance with all HUD record -keeping provisions, including use of the HMIS for clients served by ESG -funded programs. The cost of complying with this requirement must be reflected in the project budget.
N. Recordkeeping
Under ESG, programs are also required to keep a record of all clients that are screened and classified as ineligible. The ESG recordkeeping and reporting requirements state that for each individual and family determined ineligible to receive ESG assistance , the record must include documentation of the reason for that determination. (See 24 CFR § 576.500(d)).
REQUIREMENTS FOR FUNDING
The following items must be completed prior to funding:
A. Environmental Review
From the time the application has been submitted, the contractor must not commit funds or take any choice limiting actions (including option agreements or contracts for site purchase, excavation, filling, construction, rehabilitation, renovation, conversion or other physical activities) until completion of the environmental processing and HUD’s formal Release-of-Funds, regardless of whether the work would be accomplished with federal funds or other matching funds. Failure to comply will jeopardize the availability of HUD funds for the project. An environmental review must be completed before the City will execute a contract. City staff conducts this review using information provided in the application.
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B. Insurance Requirements
Proof of insurance meeting these requirements must be submitted to the City ten (10) days prior to contract execution.
Commercial General Liability . Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if Subrecipient has no owned autos, hired (Co de 8) and non -owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the City and approved in writing by the City’s Risk and Safety Division. Workers’ Compensation. Worker’s Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
Professional Liability (Errors and Omissions). Professional Li ability (Errors and Omissions) appropriate to Subrecipient’s profession, with limits no less than $2,000,000 per occurrence or claim and $2,000,000 aggregate.
If Subrecipient maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Subrecipient.
PROJECT ADMISTRATION AND MONITORING
The City is the administrative and monitoring agency for projects awarded through this RFP. Note the following project funding conditions:
A. Disbursement of Funds
It is estimated that it will take up to two-three months before contract documents are executed.
The actual time will vary based on HUD timelines, the complexity of the approved project(s), environmental constraints, and contract negotiations. HNS expects to execute one -time ESG contract(s) effective July 1, 2022.
Under this RFP, City will award ESG funds in the form of grants. City distributes funds through a reimbursement program. Expenses incurred prior to the effective date of the executed contracts are not eligible for reimbursement. Billings for reimbursement must be submitted in accordance with contract specifications 2 CFR Part 200.
B. Funding Reallocations
City reserves the right to reallocate funds from one approved project to another or to a new activity, or to cancel fund reservations at its discretion if projects are not proceeding satisfactorily (in the sole opinion of City) towards commencement of the proposed activity.
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Section Four – Project Proposal Ranking
Each proposed project is rated on the merits of the application using criteria for need, feasibility, fiscal, and project management capacity. A minimum score of 70 (seventy) out of 100 (one hundred) points is required for a project to be recommended for funding by the review panel.
All proposals will be reviewed for completeness and threshold criteria. All proposals must meet the threshold criteria to be forwarded for further review by a RFP review panel. The threshold criteria for ESG RFP proposals are as follows:
Threshold Criteria
______ Serves residents whose incomes are at or below 30% of the AMI ______ Serves persons experiencing homelessness or at risk of homelessness ______ City of Escondido benefit
______ Consistent with the 2020-2024 Consolidated Plan and amendments ______ 100% match funding is proposed and funding source is identified ______ All submittal requirements have been met
Once proposals have been screened for threshold criteria and have been forwarded for competitive review, a RFP Review Panel will be convened. The next page contains scoring criteria that will be used for the RFP process. Funding recommendations will then b e made to the Escondido City Council for consideration.
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PROJECT PROPOSAL RANKING
Maximum
Possible Points
A. Project Need
1. Target Population – Does the applicant describe the target population or subpopulation and how they are accessed? Does it address the needs of the population? Does it describe challenges and barriers? Does the target population align with City priorities? 10 2. Geographic Area – Does the applicant describe the location? Does the project benefit the needs of City Residents?
10 3. Consolidated Plan – Does the applicant demonstrate how the proposal meets with the priorities outlined in the City of Escondido 2020-2024 Consolidated Plan? 10 30
B. Project Description
1. Project Goals/Objectives/Activities – Does the applicant provide a complete description of program?
10 2. How does the project benefit persons experiencing homelessness or at risk of homelessness? Proposals for projects that will address higher priority objectives will be receive priority ranking (See Section One, Subsection IV). 25 35
C. Experience, Management and Staffing
1. Agency/Program Experience – Does the applicant describe in detail the agency/program experience in developing, implementing and evaluating the proposed project or comparable project?
9 2. Government Contracts – Does the applicant have any experience with government contracts for similar projects? Have there been any corrective actions and were they resolved? If none, does the applicant have other contracts for similar projects? 6 3. Organizational/Staffing Chart – Did the applicant include an organizational/staffing chart? Does the chart illustrate organizational management, authority, and responsibility? Does the chart identify program staff (including title and FTE) and demonstrate the lines of accountability and reporting responsibility for the proposed project? 2 4. Position Descriptions – Does the applicant provide a position description for all the proposed staffing of the project? Does the position description reflect the proposed project? Does the applicant provide a résumé for the Executive Director/Chief Executive Officer? Does the résumé demonstrate capacity/experience to support the project? 3 20
D. Fiscal Capacity
1. Audited Financials – Does the applicant provide last two (2) fiscal years’ Audited Financial Statements of the entire organization with the applicable notes, Independent Auditor’s Report on Compliance and Internal Control over Financial Reporting based on an Audit of the Financial Statements in Accordance with Government Accounting Standards and Independent Auditor’s Statement of Findings and Questioned costs? 5 2. ESG Cost Allocation Plan – Does the applicant provide a detailed cost allocation plan that clearly demonstrates how direct and indirect costs are shared between the project and other agency projects? Is it consistent with 2 CFR Part 200 Subpart E? 10 15
E. Total 100
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APPLICATION CHECK LIST
Please complete the following checklist and submit this form with the application.
All pages 8.5 x 11 inches
One master copy (no staples or binding) and three copies; both signed.
One CD/portable drive with electronic file copies.
Requirements for Submittal
RFP Application with Exhibits (pages 10-15)
ATTACHMENTS:
Articles of Incorporation and By-Laws
Audited Financial Statements/Single Audit (last two (2) fiscal years) Board Resolution
For non-profit organizations, proof of 501(c)(3) status Evidence of Funding Source Commitments (evidence of 100% match)
Requirements for Funding
Environmental Review
General Liability Insurance, Automobile Liability Insurance and Workers Compensation Insurance.
The proposal and its submittals have been reviewed for completeness using the checklist above.
Authorized Signature: Title: Date:
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RFP
APPLICATION
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City of Escondido
Housing and Neighborhood Services Division
Emergency Solutions Grant (ESG)
1. PROJECT TITLE: ______________________________________________________
2. APPLICANT: __________________________________________________________
Contact Person: ____________________________________________________ Contact Person’s Title: ________________________ Telephone _____________ Email: ____________________________________________________________ Organization Address: _______________________________________________ Phone: ___________________________ Fax: ____________________________
3. ORGANIZATIONAL STATUS (Check all that apply):
___Non-profit Organization ___Public Entity
Does your organization expend $750,000 or more a year in federal funds? ____Yes ____No
4. SUMMARY OF FUNDING REQUEST (List by funding activity):
Activity ESG
TOTAL REQUEST
$
5. GENERAL PROJECT INFORMATION
NOTE: Due to the limited amount of ESG funds available, applications for rehabilitation, renovation or conversion will not be accepted at this time.
Attach pages as necessary to describe the following:
Describe your project, including overall goals, specific objectives and activities.
Describe how your project benefits persons experiencing homelessness or at risk of homelessness, including target (sub)population(s) to be served.
Describe how your project is consistent with the priorities outlined in the City of Escondido 2020-2024 Consolidated Plan and amendments. Identify which of the Con Plan goal(s) and Attachment 5
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objective (s) your project will help accomplish. Identify which special needs and disabled population(s) will be served in accordance with the Con Plan and amendments.
Describe how your project aligns with the San Diego Continuum of Care goals, objectives, and community standards.
Provide a summary description of project proposed, including the projected number of clients or units/beds to be served.
6. TARGETING
Attach pages as necessary to describe the following:
Describe the characteristics of the population to be served (e.g. youth, seniors, veterans, persons with disabilities, etc.) and the geographic area to be benefited. It is important to also attach a map showing the project location and draw a line on the map outlining the boundaries of the geographic area served.
(1) Total number of housing units/beds upon project completion: __________
(2) Total number of assisted units/beds upon project completion: __________
(3) Total number of extremely low-income households
(at or below 30% of AMI) to be served: __________
(4) Total number of persons experiencing homelessness to be served: __________ (5) Total number of persons at risk of homelessness to be served: __________
(6) Other project objectives:
Median income is defined and published periodically by the United States Department of Housing and Urban Development (HUD) for the San Diego Standard Metropolitan Statistical Area. Please refer to Attachment A.
7. APPLICANT EXPERIENCE
Attach pages as necessary to describe the following:
A. Organization
Describe the following for the organization:
(1) Mission Statement
(2) Past activities/experience
(3) Administrative structure
(4) Cost Allocation Plan
B. Technical Capacity
(1) Describe the organization’s capability to administer the project proposed. (2) Attach resumes of staff and consultants specifically assigned to this project and describe contractual relationship.
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8. OTHER
State anything else pertinent about the proposed project.
9. CERTIFICATION
The undersigned certifies under penalty of perjury that all statements made in this proposal are true and correct to the best of the undersigned's knowledge.
Authorized Signature [Board Officer] Typed Name
Title Date Signed
Submit an original set and three (3) sets of hard copies for a total of four (4) sets of your application and one (1) CDs (or thumb drive) in WORD or PDF Format prior to the date and time specified in the cover letter.
City of Escondido
Housing & Neighborhood Services Division
Attn.: Housing & Neighborhood Services Manager
201 N Broadway
Escondido, CA 92025
Faxed and/or emailed applications will not be accepted.
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EXHIBIT A
ESG WORK PLAN 2022-2023
Organization:
Project Title:
Goal Statement:
Objective:
Key Activities Date
If the proposed program has more than one objective, please submit a separate work plan form for each objective.
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EXHIBIT B
ESG PROGRAM BUDGET 2022-2023
APPLICANT: _________________________________________________________________
PROGRAM NAME: ____________________________________________________________
Sources of Funds: Requested
ESG Funds:
Applicant’s Funds: Other Sources:
(List each separately)
TOTAL:
Homelessness Prevention:
Service Activity:
Service Activity:
Service Activity:
Emergency Shelter 1:
Operational Activity:
Operational Activity:
Operational Activity:
Street Outreach 1:
Activity:
Activity:
Activity:
Rapid Re-Housing Assistance
Activity:
Activity:
Activity:
HMIS2:
Activity:
TOTAL:
1: Limited up to 60% of the total fiscal year grant for street outreach and emergency shelter activities combined
2: HMIS participation is required by the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act).
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Exhibit 2
Board Resolution
RESOLUTION OF BOARD OF DIRECTORS
OF
____________________________________
WHEREAS, this entity has a minimum of four directors who constitute a quorum for conducting organization business; the organization conducts quarterly board meetings; quarterly financial statements are reviewed by the board; and, the executive director and other paid staff do not serve as voting board members;
WHEREAS, ________________ is a _______[Status of Corporation; i.e., A Non-profit Public Benefit Corporation, qualified pursuant to the provisions of Internal Revenue Code Section 501 (c) (3), etc.];
WHEREAS, ______________, recognizes that the community at large, and especially low-income residents have many diverse needs for social, housing, education and other services;
WHEREAS, ________________, is committed to effectively serving the communities referenced in the prior recital; and
NOW THEREFORE BE IT RESOLVED as follows:
1. That _______________is committed to providing safe, decent and affordable housing for persons of very low, low and moderate-income levels;
2. That on or about ____________, 20___, the Board of Directors voted to authorize the ________________ [title of person authorized], or his designee, to apply for and accept assistance of the ______________Project, for the purpose of obtaining a grant to provide for the ______________________ [purpose; i.e., service provision, etc.] of the Project, in an amount not to exceed __________________ ($__________) from the City of Escondido.
3. That the Board of Directors further voted to authorize the _____________________ [title of person], or his designee, to execute any and all documents required by the City of Escondido, Housing and Neighborhood Services Division to document and secure its grant.
4. That the Board of Directors further authorized the ____________ [title of person], or his designee, to perform all acts and to do all things necessary, in the opinion of the City of Escondido, Housing and Neighborhood Services Division to implement the funding and making of the grant.
I, the undersigned, certify that this Resolution was adopted at regularly or specially noticed meeting of the Board of Directors on ___________, 20___, at which a quorum of the Board of Directors was present, and at which the requisite percentage of the quorum voted to adopt the Resolution and that the Resolution has not been rescinded, modified or canceled as of the date of my execution of the same and that it remains in full force and effect as of this date. I further understand that the City of Escondido, Housing and Neighborhood Services Division is relying on the validity of this Resolution in taking the actions to process and approve the application.
I declare under penalty of perjury, under the laws of the State of California that the foregoing is true and correct.
Executed this ____ day of ________, 20___, at ____________, California.
By: ____________________
Title: ___________________
Attachment 5
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RFP
ATTACHMENTS
Attachment 5
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ATTACHMENT A
HUD Income Limits for the County of San Diego
ELIGIBLE INCOME LIMITS CHART 2021
San Diego-Carlsbad
HOUSEHOLD SIZE
1 2 3 4 5 6 7 8
30%
Extremely
low $25,450 $29,100 $32,750 $36,350 $39,300 $42,200 $45,100 $48,000 50% Very Low $42,450 $48,500 $54,550 $60,000 $65,450 $70,300 $75,150 $80,000 80% Low $67,900 $77,600 $87,300 $97,000 $104,800 $112,550 $120,300 $128,050 Income Limits effective April 1, 2021
Attachment 5
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STAFF REPORT
January 26, 2022
File Number 0470-32
SUBJECT
MANAGEMENT AND CONCESSION CONTRACT FOR REIDY CREEK GOLF COURSE
DEPARTMENT
Communications and Community Services
RECOMMENDATION
Request the City Council authorize staff to move forward with issuing a Request for Proposals (“RFP”) for the management of the Reidy Creek Golf Course and Concessions.
Staff Recommendation: Approval (Communications and Community Services: Danielle Lopez)
FISCAL ANALYSIS
Future fiscal impact will be dependent on the direction provided and future management agreement terms if applicable.
PREVIOUS ACTION
In March 2001 , the City Council approved a ten -year management contract with JC Resorts to operate Reidy Creek Golf Course on behalf of the City.
On June 27, 2012, the City Council approved Resolution 2012-123 authorizing the Mayor and City Clerk to execute a 10-year Management Agreement and a Lease and Concession Agreement with JC Management LLC and JC Resorts LLC.
BACKGROUND
Reidy Creek is an 18 -hole executive municipal golf course that opened in 2002 and was developed in conjunction with the 222 -lot Brookside residential development approved by the City Council in July of 2000. The course is constructed on approximately 65 acres of which 25 acres was owned by the City and 40 acres was transferred to the City by New Urban West, the Brookside developer. Amenities for public use include a 2,582 -yard course that offers 18 holes of golf, disc golf and foot golf, a pro shop with golf and disc golf merchandise, and the newly renovated Clubhouse and Creekside Tavern that also serves as a venue for meetings and special events.
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A 26-acre portion of the Property serves as a silt detention basin and flood control facility for large storms when runoff exceeds the carrying capacity of the Reidy Creek channel running through the site. The Course creates an approximate 100-foot-wide naturally contoured drainage channel with a 40-foot-wide natural bottom. Flows from Reidy Creek that exceed system capacity from north of the site are diverted and detained west of North Broadway on holes 11 through 17 of the golf course.
In 2002, the City entered into a 10 -year Management Agreement with JC Resorts to manage the Golf Course on the City’s behalf. The Agreement was renegotiated in 2012 and extended an additional 10 - years, ending in June 2022. Under the Agreement, JC Management is respon sible for the ongoing operation, management, maintenance, repair and upkeep of the golf course and receives an annual fixed base management fee defined in the Agreement (currently $86,066) and 0.75% of gross revenues ($7,492 in FY 2020/21). The percentage received from gross revenues cannot exceed 20% of the fixed base management fee.
The City is responsible for the cash flows necessary for operations which are recorded as transfers from the General Fund. The amount of the transfer is budgeted for at the beginning of each fiscal year as part of the adoption of the City’s Operating Budget. At the end of each fiscal year, if budgeted operating expenses exceed the net revenues, additional funds are requested from the General Fund to replenish the cash necessary to continue operations at the golf course.
In addition to the financial operations of Reidy Creek, the City is also responsible for the debt service of tax-exempt Lease Revenue Bonds that were issued in April 2001 for the construction of the golf course.
The debt issued was intended to be paid back or subsidized by income earned at the property. Since the property has not achieved those levels of income, the General Fund is obligated to make the debt service payments which average about $361,000 a year. The current outstanding principal and interest on the bonds is $3,303,494 which will be paid in full October 2030.
For years Reidy Creek reported operating deficits. To address the decline in revenues, cost reductions were implemented by JC Management including reducing maintenance on less visible parts of the course and reducing the level of staffing. Two new revenue generating activities were introduced, including foot golf in 2016 and disc golf in 2019. These golf alternatives provide more affor dable, multigenerational, family-oriented opportunities expanding the courses client base. In addition, clubhouse improvements for the “Creekside Tavern” were completed in 2020, giving a fresh look to the interior and the ability for the space to be rented for meetings and events.
Another contributing factor to the decline in revenues was the ongoing flooding of the cart tunnel that runs under Broadway and connects the front and back nine holes. When the tunnel is flooded, the back nine is essentially inaccessible. Public Works has since installed submersible pumps that divert the water From the Broadway tunnel to Reidy Creek. This improvement has provided year-round access through the tunnel, increasing playability and safety for participants, as the alternative was to cross over at the very busy intersection of Broadway and Jesmond Dene Road. Furthermore, JC Management staff continue to 216
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make improvements to the course. Specifically, they renovated and added sand material to the bunkers on the front nine and are in the process of doing the same on the remaining back nine holes. This makes them more playable for the guests and also reduces liability from root exposure.
In FY 2020/21 these efforts paid off as Reidy Creek Golf Course had the best performance it has had since opening and was able to end the year with positive net income for the first time in 10 years. Overall operating net income revenues were up 85% compared to the prior year and disc golf revenues continue to exceed expectations, coming in at 69% more than budgeted. As of June 30, 2021, Reidy Creek total net income was $78,103, excluding transfers from the General Fund.
The added activity at the course led to an increase (36%) in operating expenses, primarily due to the maintenance and repairs of aging equipment. Reidy Creek had a fleet of 26 golf carts that had exceeded their useful life and had become costly to maintain. The industry average for a golf cart’s life expectancy is between 4‐6 years, these carts had more than doubled the expected useful life, as they were purchased in 2001. In 2021, the City Council approved the purchase of 26 new carts. The carts have been received and are currently in use. The result will be a net savings to the golf course operations.
The increased use of the golf course and resulting net operating revenue are anticipated to continue into future fiscal years. The FY 2021/2022 proposed budget projects a net income of $95,940 with no transfer from the General Fund.
With the current agreement ending on June 30, 2022, City staff have explored alternatives for the property once the agreement ends. The options for changing the use of the property are limited due to the Lease Revenue Bonds issued to construct the golf course. In order to maintain the tax -exempt status of the bonds, the law requi res that the property must be used for municipal purposes. The following is a summary of the options explored.
Option One: Continue to operate the space as a golf course.
Negotiate a new contract with more favorable terms; potential decrease to City obligation if revenues continue as projected.
Option Two: Repurpose the course into an open space park.
The cost to maintain the course as a park would require additional City staff and resources and cost the City approximately $440,000 annually to maintain.
Option Three: Let the course go fallow.
The City could let the course go fallow and not maintain the land as a park; however, there are continued costs of at least $100,000 annually to address weed abatement, graffiti elimination, code enforcement, and other policing of the site. In addition, alternative uses would need to be established for the clubhouse, maintenance building, and facilities yard that may result in even higher maintenance and security costs than anticipated.
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Options Golf Course Open Space Park Fallow
Operating Costs <$95,940>* $440,000 $100,000
Bond Debt Service Payment $365,000 $365,000 $365,000
Total $269,060 $805,000 $465,000
*proposed net income for FY 2021/22
It is staff’s recommendation that we continue to operate the property as a golf course, at minimum, through the term of the debt service payments (2030), and that the City Council authorize staff to move forward with issuing a Request for Proposals for the management of the Reidy Creek Golf Course and Concessions.
The new management agreement with the successful bidder will seek to adopt more favorable terms for the City and will terminate in 2030 to align with the bond maturity date. At that time, other options including but not limited to a fitness park, skate park, bike park, sports fields, or housing will be explored, as these types of projects could be more financially viable at that time.
Specifically related to housing, AB-672, a bill currently going through the legislative process, may provide future opportunities for grants related to the conversion of municipal golf courses to housing. Existing law establishes the Department of Housing and Community Development and requires it to, among other things, administer various programs intended to fund the acquisition of property to develop or preserve affordable housing. If approved, this bill would require the Department of Housing and Community Development to administer a program to provide incentives in the form of grants to local agencies that enter into a devel opment agreement to convert a golf course, owned by the local agency, into housing and publicly accessible open space. This legislation has not yet been approved. Staff will continue to monitor the status of the bill and if approved, will evaluate the terms for future opportunities.
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STAFF REPORT
January 26, 2022
File Number 0480-70
SUBJECT
ESCONDIDO CREEK TRAIL EXPANSION AND RENOVATION PROJECT UPDATE
DEPARTMENT
Communications and Community Services
RECOMMENDATION
Request the City Council receive and file an update on the progress of the Escondido Creek Trail Expansion and Renovation Project (“Project”) funded through an $8.5 million Prop 68 grant.
Staff Recommendation: Receive and File (Communications and Community Services: Joanna Axelrod)
FISCAL ANALYSIS
The City of Escondido (“City”) was awarded $8.5 million in Prop 68 Statewide Park Development and Community Revitalization Program (“SPP”) funds from the California Department of Parks and Recreation to fund this Project.
PREVIOUS ACTION
On September 29, 2021, the City Council approved Resolution No 2021-146 authorizing the acceptance of Coronavirus State and Local Fiscal Recovery Funds established by the American Rescue Plan Act of 2021 in the amount of $38,808,509 amongst which $1 million was allocated to the Project.
On June 5, 2019, the City Council approved Resolution No. 2019 -87 authorizing the Director of Communications and Community Services or her designee to submit an application to the California Department of Parks and Recreation for $8.5 million in SPP funds for improvements to the Escondido Creek Trail.
On January 25, 2012, the City Council approved Resolution No. 2012 -11 accepting the final Escondido Creek Trail Master Plan Report and authorized staff to seek and acquire grant funding that will enable the City to continue revitalization of the Escondido Creek Trail.
BACKGROUND
California voters passed the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (“Prop 68”) on June 5, 2018. The California Department of Parks and Recreation released the SPP application with the goal of creating new parks and recreation opportunities in critically underserved communities across California. The City submitted an application requesting $8.5 million to 219
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fund the Project which will construct multiple trail amenities to transform the Class I bicycle lane into a linear park. This Project will expand and improve Escondido Creek Linear Park by constructing new walking trails; providing access from the Creek Trail to the fitness court and skate park at Washington Park; adding directional and educational signage; opening a community garden ; adding murals and other decorative and artistic features; and improving fencing, lighting and landscaping at key locations throughout the site.
The Project will open both sides of the Escondido Creek Trail to accommodate multiple types of users by building an additional pedestrian pathway along approximately 1.7 miles of trail between Date Street and Midway Drive. These improvements are consistent with the Escondido Creek Trail Master Plan developed and approved in 2012 and have been retested and vetted during multiple community feedback sessions between July 2019 and summer 2021.
On February 21, 2020, the California Department of Parks and Recreation notified the City that our Project had been selected to be funded at the full requested amount of $8.5 million. On March 16, 2020, the City released a Request for Proposal (“RFP”) seeking proposals for design services from firms who could bring to life the community’s vision for revitalizing the Escondido Creek Trail and turning it into a premier linear park. The scope of this Agreement included design services, project management, public outreach and engagement, environmental services, preparation of construction bid documents, and oversight of the construction process. The City awarded the contract to RRM Design Group.
A variety of partners have contributed to the community-based design of and public enthusiasm for this Project. The Escondido Creek Conservancy has not only gathered feedback and presented recommendations on the plant palette but have also committed to supporting future volunteer clean-up and tree-planting efforts along the ECT. Neighborhood Healthcare has invested in Crime Prevention Through Environmental Design (CPTED) improvements to their facilities and have committed the ECT- facing wall of their facility to host a mural. San Diego Gas & Electric and Urban Corps are donating funding and labor to plant 100 trees and install the supporting irrigation. The Public Art Commission will also be funding art through their mural and public art grants that will bring beauty, culture, and personality to this effort. Escondido Education COMPACT has assisted with outreach and provided input, continued to host clean-ups along the urban sections of the ECT and COMPACT has committed to organize additional community volunteerism along the Creek Trail, including clean-ups, invasive removal, and planting new California friendly, drought- tolerant plants.
On October 12, 2021 the Planning Commission provided design review supportive of the proposed amenities and improvements finding the Project to be consistent with the goals of improving the aesthetics, safety, and usability of the Trail. In particular, immediate visual improvements including the use of various ground cover materials to soften the look of the trail, and the installation of new fencing to replace the chain link fencing. The landscaping proposed is primarily California native plants, and all are drought tolerant. In addition, the City’s recycled water system will provide water for irrigation.
Preparation of a Mitigated Negative Declaration (“MND”) is underway for the Project. The MND will be considered by the City Council prior to awarding the construction contract which is anticipated to come 220
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before the Council in early summer 2022 . Construction is anticipated to begin i n late summer 2022 and take approximately 9 months to complete. A ribbon cutting celebration and grand opening of the Trail will follow.
Additional details about the Project’s history, timeline, outreach efforts, design renderings, and related projects are available on the City’s website at http://escondido.org/ect.
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STAFF REPORT
January 26, 2022
File Number 1320-55; 0600-10, A-0511
SUBJECT
AUTHORIZING A SECOND AMENDMENT TO THE ESCONDIDO-VISTA WATER FILTRATION JOINT
POWERS AGREEMENT, AND AUTHORIZING THE TRANSFER OF OWNERSHIP OF CERTAIN RAW WATER
COMVEYANCE FACILITIES
DEPARTMENT
Utilities Department, Water Division
RECOMMENDATION
Request the City Council adopt Resolution No. 2022 -05 authorizing the Mayor to execute, on behalf of the City of Escondido:
(1) a Second Amendment to the Escondido-Vista Water Filtration Joint Powers Agreement (JPA); (2) an Assignment and Assumption Agreement;
(3) a Quitclaim Deed; and
(4) a Bill of Sale.
Staff Recommendation: Approval (Utilities Department, Water Division: Christopher W. McKinney)
FISCAL ANALYSIS
Execution of the attached agreements, deed, and Bill of Sale would transfer ownership of raw water conveyance pipelines, facilities, and easements described in the attachments. Ownership would transfer from the Vista Irrigation District ( “VID”) to the City of Escondido ( “City”), without payment, as required under the 2017 Local Entities’ Agreement between VID and the City. All transferred facilities have been fully depreciated, excepting two: (1) the 54” pipeline constructed around 1992 to replace a portion of the Escondido Siphon has a net booked value of $330,586, and (2) the Wohlford Penstock replacement constructed arou nd 2003 has a net booked value of $1,481,050. The total net booked value of all transferred facilities is $1,811,636.
PREVIOUS ACTION
On July 21, 1971, the City Council adopted Resolution No. 4925, authorizing a Joint Powers Agreement with VID for the purp ose of constructing and operating the Escondido -Vista Water Treatment Plant (“EVWTP”).
On November 13, 1991, the City Council adopted Resolution No. 91-498, authorizing an amendment to the 1991 Joint Powers Agreement with VID for the purpose of constructing and operating a 54” raw water pipeline from Lake Wohlford Dam to the Escondido-Vista Water Treatment Plant. 222
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On January 25, 2017, the City Council adopted Resolution 2017-20, authorizing the Agreement between the City of Escondido and the Vista Irrigatio n District for the Allocation and Management of Local Water and Facilities (“Local Entities’ Agreement”).
BACKGROUND
The City and VID have worked together to construct and operate several raw water conveyance facilities to transport water from Lake Henshaw in the San Luis Rey River basin, down the San Luis Rey River, through the Escondido Canal to Lake Wohlford, and finally from Lake Wohlford via pipelines to the EVWTP.
These facilities are part of the so -called Local Water System (“LWS”), which was the subject of the 2017 San Luis Rey Water Rights Settlement Agreement and Implementa tion Agreement among the City and VID, together known as the Local Entities ( “LEs”), the five members of the San Luis Rey Indian Water Authority (“SLRIWA”), and the United States government.
Some of the facilities in the LWS are jointly owned by the City and VID, while other are wholly owned by one agency or the other. In preparation for final ratification of the 2017 San Luis Rey Water Rights Settlement Agreement and Imp lementation Agreement, the City and VID entered into the 2017 Local Entities Agreement. Among the terms of the Local Entities Agreement (Section 8.B) is the transfer of any of VID’s remaining ownership interest i n those facilities to Escondido. VID remai ns committed to reimbursing the City half the cost of operating, maintaining, repairing , or replacing (OMR&R) those facilities. This transfer of ownership is beneficial to the City and VID because it clarifies and simplifies Escondido’s role in conveying Local Water to the EVWTP under the Local Entitles’ Agreement.
Section 8.B of the Local Entities Agreements requires VID to transfer ownership to the City all VID-owned facilities between the “P1/P2” Pump Station at the EVWTP and Woh lford Dam. The four agre ements attached to this Staff Report (Assignments and Assumption Agreement, Bill of Sale, Quitclaim Deed, and Second Amendment to Water Filtration Plant Joint Powers Agreement between the City of Escondido and Vista Irrigation District) fulfill that requir ement and are recommended by City Staff for City Council approval. The VID Board of Directors authorized the VID General Manager to execute these agreements on November 17, 2021. Please note that the agreements adopt the Local Entities’ Agreement convention of referring to VID as “Vista” (not to be confused with the City of Vista ) and the City of Escondido as “Escondido.”
The four recommended agreements are as follows:
1. Assignment and Assumption Agreement. Under this agreement, the City assumes from VID all its rights and obligations under the four pipeline easements identified in Exhibit A of the Assignment and Assumption Agreement.
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2. Bill of Sale. Under the Bill of Sale, V ID conveys all of its ownership interest in the “Vista Transfer Facilities” to the City. A map of the transferred facilities is attached as Exhibit A of the Bill of Sale, and a list of included facilities is attached as Exhibit B of the Bill of Sale. Key facilities include the Wohlford penstock (both the current penstock built in 2003 and the abandoned penstock which it replaced); the Bear Valley Energy Absorber and Bypass Valve facilities; the 54”, 48”, 42” and 36” pipelines, which constitute the Bear Valley Siphon and the abandoned pipelines which they replaced; and approximately 750 feet of the Jack Creek Bench of the Vista Flume, which conveys raw water to the P1/P2 Pump Station for delivery to the EVWTP. The transferred facilities include associated valves, blow-offs, air vents, cathodic protection stations, electrical facilities, etc.
3. Quitclaim Deed. In a 1926 agreement, the Escondido Mutual Water Company (“Mutual”), a public company that constructed a significant portion of the City’s existing water system , granted an easement to VID for a pipeline parallel to its own existing pi peline; both pipelines are now abandoned. Under the Quitclaim Deed, VID forever quit claims the Mutual easement and other interests under that 1926 agreement. Mutual was assumed by the City, so all its existing assets, rights, and responsibilities – including the Mutual easement – are now the responsibility of the City.
4. Second Amendment to Water Filtration Plant Joint Powers Agreement between the City of Escondido and Vista Irrigation District. In 1991, VID and the City entered into a First Amendment to Water Filtration Plant Joint Powers Agreement to jointly construct and operate a new 54” pipeline from Lake Wohlford to the EVWTP under which VID was to own 50% of the new facilities.
The facilities actually constructed under the First Amendment are different than those described in the document; however, the difference in facilities constructed is inconsequential since per the terms of the Second Amendment to the Water Filtration Plant Joint Powers Agreement Vista transfers and the City accepts all of VID’s ownership of the constructed facilities. No other terms of the Water Filtration Plant Joint Powers Agreement (governing the ownership, operation and maintenance of the EVWTP) are affected.
RESOLUTIONS
a. Resolution No. 2022-05
b. Resolution No. 2022-05 Exhibit “A” - Assignments and Assumption Agreement c. Resolution No. 2022-05 Exhibit ”B” – Bill of Sale
d. Resolution No. 2022-05 Exhibit “C” - Quitclaim Deed
e. Resolution No. 2022-05 Exhibit “D” - Second Amendment to Water Filtration Plant Joint Powers Agreement between the City of Escondido and Vista Irrigation District 224
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RESOLUTION NO. 2022-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR
TO EXECUTE, ON BEHALF OF THE CITY, A SECOND
AMENDMENT TO THE ESCONDIDO -VISTA WATER
FILTRATION JOINT POWERS AGREEMENT, AND
AUTHORIZING THE TRANSFER OF OWNERSHIP OF
CERTAIN RAW WATER CONVEYANCE FACILITIES
WHEREAS, The City of Escondido ( “City”) and the Vista Irrigation District ( “VID”) have worked together to construct and operate a Local Water System (“LWS”); and WHEREAS, the City and VID jointly own and operated the Escondido-Vista Water Treatment Plant (“EVWTP”); and
WHEREAS, the LWS is comprised of several raw water conveyance facilities that transport water from Lake Henshaw in the San Luis Rey River basin, down the San Luis Rey River, through the Escondido Canal to Lake Wohlford, and finally from Lake Wohlford via pipelines to the EVWTP; and WHEREAS, the City Council adopted Resolution No. 4925 in 1971 authorizing a Joint Powers Agreement with VID that governs the operation and maintenance of EVWTP; and WHEREAS, the City Council adopted Resolution No. 91-498 in 1991 authorizing an amendment to the 1971 Joint Powers Agreement with VID for the purpose of constructing and operating a 54” raw water pipeline from the Lake Wohlford Dam to the Escondido-Vista Water Treatment Plant; and WHEREAS, the City Council adopted Resolution 2017-20 in 2017 authorizing the Agreement between the City of Escondido and the Vista Irrigation District for the Allocation and Management of Local Water and Facilities (“Local Entities’ Agreement”); and 226
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WHEREAS, among the terms of the Local Entities Agreement (Section 8.B) is the transfer of any of VID’s remaining ownership interest in facilities of the LWS to Escondido without cost; and WHEREAS, VID remains committed to reimbursing the City half the cost of operating, maintaining, repairing or replacing (OMR&R) those facilities; and
WHEREAS, this transfer of ownership is beneficial to the City and VID because it clarifies and simplifies Escondido’s role in conveying Local Water to the EVWTP under the Local Entitles’ Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:
1. That the above recitations are true.
2. That the City Council authorizes the Mayor to execute, on behalf of the City, the Assignments and Assumption Agreement (Exhibit “A” to this Resolution) , Bill of Sale (Exhibit “B” to this Resolution), Quitclaim Deed (Exhibit “C” to this Resolution) , and Second Amendment to Water Filtration Plant Joint Powers Agreement between the City of Escondido and Vista Irrigation District (Exhibit “D” to this Resolution).
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STAFF REPORT
January 26, 2022
File Number 0460-20
SUBJECT
CALPERS PENSION FUNDING WORKSHOP
DEPARTMENT
Finance
RECOMMENDATION
Request the City Council Receive and file information on the City’s California Public Employees Retirement System pension obligations.
Staff Recommendation: Receive and File (Finance Department: Christina Holmes)
FISCAL ANALYSIS
Ongoing information for budget planning purposes.
BACKGROUND
The City of Escondido (“City”) provides retirement benefits to its employees who provide the City services residents rely on, by contracting with the California Public Employees Retirement System (“CalPERS”). The City has taken decisive action on pension reform and saving significant taxpayer dollars by addressing this cost head on. CalPERS offers a defined benefit plan where retirement benef its are based on a formula, rather than contributions to and earnings from a savings plan such as those commonly used in the private sector such as 401ks. Retirement benefit formulas are calculated based on an employee’s years of service credit, age at retirement, and final compensation, which is determined by an employee’s average salary, excluding overtime, for a defined period of employment. Retirement formulas for employee groups vary based on classification (Miscellaneous or Safety), and within these groups, by date of entering CalPERS membership (“Classic” or “PEPRA” if entered into CalPERS after January 1, 2013).
The City continues to be a responsible and accountable fiscal steward of taxpayer dollars through pension reform and maintaining a stringent budget. In 2013 California pension reform became law under the Public Employees’ Pension Reform Act (“PEPRA”). PEP RA, effective for all new employees hired after January 1, 2013, made broad prospective changes to pensions in California with the goal to create a more sustainable pension system by reducing employer's pension liabilities and increasing employee contributions towards their pension benefits. However, savings from the reform will take many years to be realized.
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CalPERS Projected Contribution and Funding Levels
Retirement benefits are funded by contributions from both employees and the City (“normal” annual service costs) as well as investment earnings. Annual contribution amounts are determined based on a percentage of payroll and in accordance with an actuaria lly based funding policy. The actuarially - determined pension funding plan determines exactly how much should be contributed each year to ensure that the benefits being earned will be securely funded in a systematic fashion. Since actuarial assumptions a re for the long term, demographic and economic assumptions can vary from actual experience. There are many factors considered such as mortality experience, retirement rates, disability incidences, salary growth, investment returns and more. An actuarial plan valuation is therefore prepared each year to true-up contribution levels to better match actual experience.
CalPERS invests contribution payments with the goal of earning sufficient returns over the long -term to pay defined benefits as promised and cover CalPERS expenses. Historically, more than 60% of all funds paid to CalPERS retirees comes from investment earnings. The estimated long -term average return expected to be earned on investments is referred to as the “discount rate” . When lower investment earnings occur, future contributions must increase to make up the expected difference and an unfunded accrued liability (“UAL”) is created. The UAL represents the shortfall or gap between what is needed to pay retiree benefits versus how much in current assets the City actually has in its accounts with CalPERS.
The UAL is calculated annually and changes depending on the demographic trends of the plan participants.
For many years, due to positive investment returns, CalPERS cities were “superfun ded,” meaning total plan assets exceeded the total CalPERS projected liability . However, during the Great Recession and resulting downturn in the economy, investment returns were impacted negatively nationwide, including CalPERS investments, decreasing the City’s total plan assets and creating an unfunded liability. In addition to the investment losses, adjustments have been made to demographic assumptions such as higher retirement rates, and also the expectation that retired employees are living longer, which have also contributed to the increasing liability.
CalPERS and the City of Escondido have taken a number of actions to address unfunded liabilities across its member plans with the objective of reaching 100 percent funded status . Since Decembe r 2016, CalPERS has been lowering its discount rate in recognition that its assumptions about the rate of return on investments have been overly optimistic. The discount rate was lowered from 7.5% to 7.0% over a 3 - year period beginning with the June 30, 2016 valuation. Without any offsetting action, reducing the discount rate increases costs to member agencies in the short -term. In the long-term, the reduced rate is expected to lower the cost to member agencies as CalPERS is more likely to achieve the i nvestment earnings target.
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When CalPERS last reduced its discount rate, causing employer liabilities to significantly increase, CalPERS also implemented a “ramp up” strategy to smooth out the increases in UAL contributions. As opposed to a fixed-level payment schedule, CalPERS began using a 25 -year amortization schedule where payments are ramped up in the beginning years and ramped down in the ending years.
The table below provides more detailed information about the total employer contributions to CalPERS for the Miscellaneous and Safety Plans over the last five years. As the table reflects, the normal cost for the Miscellaneous and Safety Plans have increased 7% and 3%, respectively, over the last five years. The UAL for the Miscellaneous and Safety Plans have increased 63% and 85%, respectively, over the same time period. For reference, General Fund revenues increased 10% between FY2019/20 to FY2020/21 and Projected Revenue Growth is about 3% each year. While a portion of pension contributions for the Miscellaneous group is provided by funds other than the General Fund, it is anticipated that the General Fund will have responsibility for approximately 78% of the annual unfunded liability.
Annual Payments 2017-18 2018-19 2019-20 2020-21 2021-22
5-Year Increase
UAL
Miscellaneous Plan $8,267,000 $9,607,958 $11,026,653 $12,089,955 $13,503,578 $5,236,578 63% UAL
Safety Plan 5,387,634 6,574,242 7,832,654 8,845,044 9,952,564 4,564,930 85% UAL Total 13,654,634 16,182,200 18,859,307 20,934,999 23,456,142 9,801,508 72% Normal Cost
Miscellaneous Plan 3,802,260 3,750,135 4,138,487 4,439,106 4,082,911 280,651 7% Normal Cost
Safety Plan 5,100,798 4,893,714 5,032,595 5,649,745 5,273,860 173,062 3% Normal Cost Total 8,903,058 8,643,849 9,171,082 10,088,851 9,356,771 453,713 5% Total $22,557,692 $24,826,049 $28,030,389 $31,023,850 $32,812,913 $10,255,221 45% Required annual payments to CalPERS towards the UAL have increased significantly and the payments are projected to grow annually. While PEPRA and CalPERS actions subsequent to PEPRA will reduce the City's pension liabilities, the annual budgetary effects of this reform will not materially be realized by the City for many years.
Actions Taken to Address Increasing Costs
The City has taken several steps to address the CalPERS pension costs. These have included:
1) Lower Benefit Tiers for Employees. Taking advantage of state legislation, two new lower benefit tiers have been established with CalPERS: Tier 2 Employees hired in 2011-12 (depending on employee group) are required to pay the full employee contribution upon hiring. Tier 3 was created in 2013 as a result of the California Public Employees' Pension Reform Act (PEPRA) and 270
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establishes a reduced tier of benefits for new CalPERS employees. The employee share for PEPRA employees is higher than that for Tier 1 and Tier 2 employees. 2) Employee Cost Sharing . In 2018, to help address the long -term budget impacts as a result of CalPERS pension liabilities, the Firefighters Associa tion, Police Officers Association, and Maintenance & Operations bargaining units agreed to share in the costs of the employer's CalPERS contribution. Prior to the agreements, Classic CalPERS Safety members were contributing 9% and Classic CalPERS Miscellaneous members were contributing 8% of their salary towards the employee's retirement benefit. The amount increased by 1% each year until the additional contribution reached 3% for each group. Classic CalPERS Safety members are currently contributing 12% and Classic CalPERS Miscellaneous members are contributing 11% towards their CalPERS retirement benefit.
3) Prepayments to CalPERS . Since FY2017/18 the City has prepaid the annual Unfunded Accrued Liability payment at the beginning of each fiscal year to save 3.5% (approximately $800,000/year). 4) Creation of a Section 115 Trust. Historically, Internal Revenue Code Section 115 Irrevocable Trusts have been used to pre-fund other post-employment benefits. In 2015, Public Agency Retirement Services (PARS) received a favorable private letter ruling from the Internal Revenue Service that allows public agencies to prefund pension obligations in a Section 115 Irrevocable Trust. This ruling allows the City to safely and securely set aside funds, separate and apart from t he state retirement system, in a tax -exempt irrevocable trust to reduce pension liabilities and stabilize pension costs.
The City Council conducted a Pension Workshop on September 27, 2017, and determined to establish a Section 115 Irrevocable Pension Trust. On February 14, 2018, the City Council authorized the establishment of the Trust with PARS. The City Council also approved a deposit of $1,984,000 to initially fund the Trust. Since then, Council policy have resulted in additional contributions from: (1) Successor Agency Loan Repayment (final payment received in FY2021/22); (2) proceeds from the sale of City property belonging to the General Fund; (3) and any General Fund surplus realized at the end of each fiscal year. The Section 115 Pension Trust Fund currently has a balance of $26.8 million (December 2021).
5) Annually – Staff implement operational efficiencies, where possible, to minimize costs and impact to service levels as CalPERS costs increase.
Recent CalPERS Board Action
In July 2021, CalPERS reported investment returns of 21.3%, for the 12-month period ended June 30, 2021.
This triggered a Funding Risk Mitigation Policy approved by the CalPERS Board of Administration in 2015.
Under the Funding Risk Mitigation Policy, the double -digit return will cause a reduction in the discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA) member 271
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contributions. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%. As explained above, this action is outside the City’s control, and will result in a higher required CalPERS payment.
Next Steps
As we begin the FY2022/23 budget process and review and review the feedback on community needs and priorities gathered from the 2021 Communi ty Satisfaction Survey , it is important to understand the budgetary impacts of the actions taken by the CalPERS Board and the effect that the UAL has on the General Fund now and into the future . Therefore, staff have contracted with Bartel Associates, LLC , to provide an analysis and update on the City’s CalPERS program. Bartel Associates, LLC is an independent actuarial firm that provides actuarial valuation, consulting, and advisory services to large and small retirement systems in the state of California.
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KEY-
CONSENT CALENDAR CURRENT BUSINESS
PUBLIC HEARING WORKSHOP
2/2/2022
CONSENT CALENDAR - (R. VOGT) - ANNUAL STATE MANDATED INSPECTION COMPLIANCE REPORT - Request the City Council approve acknowledging the Fire Department’s report of compliance with annual State mandated inspections.
CONSENT CALENDAR - (D. SHULTZ) - TREASURER'S INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2021 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2021.
CONSENT CALENDAR - (J. PROCOPIO) - NOTICE OF COMPLETION FOR GATEWAY GRAND PROJECT - It is requested that City Council adopt Reso No. 2022-20 to approve and accept the Public Improvements and authorize staff to file Notice of Completion.
CONSENT CALENDAR - (J. PROCOPIO) - NOTICE OF COMPLETION FOR LEXUS OVERFLOW PARKING LOT- It is requested that City Council adopt Reso No. 2022-21 to approve and accept the Public Improvements and authorize staff to file a Notice of Completion.
CONSENT CALENDAR - (J. PROCOPIO) - CHANGE ORDER FOR THE 2021 STREET MAINTENANCE REHABILITATION AND MAINTENANCE PROJECT - Request the City Council approve the Change Order in the amount of $320,141.67 to complete additional pavement repairs as part of the project and to assist the Utilities Department for the 20212 Street Rehabilitation and Maintenance Project – Phase 2 Public Improvements and authorize staff to file Notice of Completion.
CONSENT CALENDAR - (J. PERPETUA) - DENIAL OF CALPERS INDUSTRIAL DISABILITY FOR POLICE SERGEANT PAUL F.
WOODWARD - Request the City Council approve denying the California Public Employees' Retirement System (CalPERS) Industrial Disability Retirement for Police Sergeant Paul F. Woodward.
CURRENT BUSINESS - (C. HOLMES) - FINANCIAL STATUS REPORT FOR THE FISCAL YEAR 2021/22 SECOND QUARTER ENDING DECEMBER 31, 2021 AND BUDGET ADJUSTMENT - Request the City Council receive and file the second quarter financial report and approve a budget adjustment to amend the fiscal year 2021/22 operating budget. 02/09/2022 - CANCELLED
2/16/2022 - CANCELLED
02/23/2022 - NO MEETING (PRESIDENT'S DAY)
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