Agenda packet — Escondido City Council, August 9, 2023

CITY of ESCONDIDO

Council Meeting Agenda
WEDNESDAY, AUGUST 09, 2023
4:00 PM - Closed Session (Parkview Conference Room)
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

WELCOME TO YOUR CITY COUNCIL MEETING
We welcome your interest and involvement in the legislative process of Escondido. This agenda includes information about topics coming before the City Council and the action recommended by City staff.

MAYOR
Dane White

DEPUTY MAYOR
Joe Garcia (District 2)

COUNCILMEMBERS
Consuelo Martinez (District 1)
Christian Garcia (District 3)
Michael Morasco (Disctrict 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

HOW TO WATCH
The City of Escondido provides three ways to watch a City Council meeting:

In Person On TV Online

201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.org

1 Wednesday, August 09, 2023

HOW TO PARTICIPATE
The City of Escondido provides two ways to communicate with the City Council during a meeting:

In Person In Writing

Fill out Speaker Slip and Submit to City Clerk https://escondido-ca.municodemeetings.com

ASSISTANCE PROVIDED
If you need special assistance to participate in this meeting, please contact our ADA Coordinator at 760-839-4869.

Notification 48 hours prior to the meeting will enable to city to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired – please see the City Clerk.

2 Wednesday, August 09, 2023

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CLOSED SESSION

I. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)

a. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Police Officers' Association Sworn Personnel Bargaining Unit

b. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Police Officers' Association Non-Sworn Personnel Bargaining Unit

c. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Firefighters’ Association Safety and Non-safety Bargaining Unit

d. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: ECEA Unit (SUP)

e. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Maintenance and Operations Bargaining Unit (Teamsters Local 911 and ACE)

3 Wednesday, August 09, 2023

II. CONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION (Government Code § 54956.9(d)(1))

a. Thomas Pugh v. City of Escondido
WCAB No: ADJ15407550; ADJ15407612

b. Ken Burris v. City of Escondido
WCAB Nos: ADJ11194693; ADJ111235664, ADJ11235665

c. Randy Folds v. Jesus Vea, City of Escondido, et. al
San Diego Superior Court Case No. 37-2022-00032605-CU-PA-NC

d. Building Industry Association of San Diego County v. City of Escondido San Diego Superior Court Case No. 37-2021-00008423-CU-MC-NC

ADJOURNMENT

4 Wednesday, August 09, 2023

REGULAR SESSION
5:00 PM Regular Session

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remarks made by individuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

CLOSED SESSION REPORT

CONSENT CALENDAR
Items on the Consent Calendar are not discussed individually and are approved in a single motion. However, Council members always have the option to have an item considered separately, either on their own request or at the request of staff or a member of the public.

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) –

5 Wednesday, August 09, 2023

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
 374999 – 375161 dated July 05, 2023
 375162 – 375371 dated July 12, 2023
 375372 – 375633 dated July 19, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: Special Meeting/Workshop of July 12, 2023 and Regular Meeting of July 19, 2023

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS –

5. ESTABLISHING THE PROPERTY TAX RATE AND FIXED CHARGE ASSESSMENTS FOR GENERAL

OBLIGATION BONDED INDEBTEDNESS
Request the City Council adopt Resolution No. 2023-93 to establish the property tax rate and fixed charge assessments for bonded indebtedness for Fiscal Year 2023/24.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Michelle Collett, Revenue Manager
a) Resolution No. 2023-93

6. SECOND AMENDMENT TO LEASE AGREEMENT WITH DAVE MCMAHON CONSTRUCTION, INC. AT 525

NORTH QUINCE STREET
Request the City Council approve Resolution No. 2023-98 authorizing the Mayor to execute a Second Amendment to Lease Agreement with McMahon Construction for the City owned property located at 525 North Quince Street.

Staff Recommendation: Approval (City Manager Department: Jennifer Schoeneck, Deputy Director of Economic Development)
Presenter: Vincent McCaw, Real Property Manager
a) Resolution No. 2023-98

6 Wednesday, August 09, 2023

7. RETENTION OF EXISTING SPEED LIMITS
Request the City Council adopt Ordinance No. 2023-09 retaining the posted speed limits on three (3) street segments, portions of Mountain View Drive, Sheridan Avenue, and W. Citracado Parkway.

Staff Recommendation: Approval ( Development Services Department: Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Edd Alberto, City Traffic Engineer
a) Ordinance 2023-09 (First Reading and Introduction)

8. AMENDING TRAFFIC SCHEDULE FOR STOP SIGNS
Request the City Council adopt Resolution No. 2023-89, amending the traffic schedule for stop signs to add a minor-street stop control at the intersection of Gretna Green Way and Canyon Road.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Edd Alberto, City Traffic Engineer
a) Resolution No. 2023-89

9. APPROVE CHANGE ORDER TO COMPLETE ADDITIONAL WORK FOR THE JUNIPER ELEMENTARY

BIKE/PEDESTRIAN IMPROVEMENT PROJECT
Request the City Council adopt Resolution No. 2023-102 authorizing the City Manager to execute change orders to the construction contract in the amount of $241,743.87 for the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”).

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services and Julie Procopio, City Engineer) Presenter: Jonathan Schauble, Principal Engineer
a) Resolution No. 2023-102

7 Wednesday, August 09, 2023

CONSENT RESOLUTIONS AND ORDINANCES (COUNCIL/RRB)
The following Resolutions and Ordinances were heard and acted upon by the City Council/RRB at a previous City Council/Mobilehome Rent Review meeting. (The title of Ordinances listed on the Consent Calendar are deemed to have been read and further reading waived.)

10. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, ADOPTING THE EAST

VALLEY SPECIFIC PLAN, AND ADOPTING AN AMENDMENT TO THE CITYWIDE ZONING MAP TO CHANGE

THE DESIGNATION OF ALL PROPERTIES WITHIN THE EAST VALLEY SPECIFIC PLAN AREA TO SPECIFIC

PLAN (S-P)
Approved on July 19, 2023 with a vote of 5/0.
a) Ordinance No. 2023-10R (Second Reading and Adoption)

PUBLIC HEARING

11. ANNUAL ACTION PLAN FOR FISCAL YEAR 2023-2024 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) FUNDING FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME INVESTMENT PARTERNSHIP (“HOME”) PROGRAMS
Request the City Council adopt Resolution No. 2023-100, approving the CBDG and HOME Budgets for FY 2022-23, and adopt Resolution No. 2023-101, adopting the 2023-24 Action Plan for CBDG and HOME Budgets.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services)
Presenters: Holly Nelson, LCSW, Housing & Neighborhood Services Manager and Rodrigo Carrasco, Management Analyst I
a) Resolution No. 2023-100
b) Resolution No. 2023-101

8 Wednesday, August 09, 2023

CURRENT BUSINESS

12. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2020-1 (PUBLIC SERVICES) Request the City Council adopt Resolution 2023-82, setting the Special Tax Levy for Community Facilities District No. 2020-1 (“Public Services CFD”) for Fiscal Year 2023/24.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services)
Presenter: Andrew Firestine, Director of Development Services a) Resolution No. 2023-82

FUTURE AGENDA

13. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most cur rent information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ADJOURNMENT

9 Wednesday, August 09, 2023

UPCOMING MEETING SCHEDULE
Wednesday, August 16, 2023 4:00 & 5:00 PM Regular Meeting, Council Chambers Wednesday, August 23, 2023 4:00 & 5:00 PM Regular Meeting, Council Chambers

SUCCESSOR AGENCY
Members of the Escondido City Council also sit as the Successor Agency to the Community Development Commission, Escondido Joint Powers Financing Authority, and the Mobilehome Rent Review Board.

10 Consent Item No. 1 August 9, 2023

A F F I D A V I T S

I T E M

P O S T I N G –

 FISCAL YEAR 2023-2024 ANNUAL ACTION PLAN FOR
COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (“HOME”)
11 Item1.

CITY OF ESCONDIDO

HOUSING & NEIGHBORHOOD SERVICES
201 N. BROADWAY
ESCONDIDO, CA 92025-2798
760-839-4841

NOTICE OF PUBLIC HEARING AND 30-DAY PUBLIC COMMENT PERIOD

FISCAL YEAR 2023-2024 ANNUAL ACTION PLAN FOR
COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME
INVESTMENT PARTNERSHIPS PROGRAM (“HOME”)

NOTICE IS HEREBY GIVEN on WEDNESDAY, AUGUST 9, 2023 at 5 p.m., the Escondido City Council will hold a Public Hearing to cons ider the adoption and approval of the 2023-24 Annual Action Plan for the Community De velopment Block Grant (“CDBG”) and HOME Investment Partnership (“HOME”) funds, and HOME Program Income (“HOME PI”).

The City of Escondido is an entitlement jurisdiction and anticipates receiving $2,250,048 in federal funds for CDBG ($1,446,858), HOME ($712,111) and HOME PI ($91,079) programs in Fiscal Year 2023-24. These federals are intended to serve low- and moderate-income persons and areas, eliminate slum and blight and address urgent needs within the City of Escondido. The City of Escondido released a Request for Proposal in June 2023 soliciting CDBG applications and received 20 proposals from both external and internal applicants. The City has published a draft Annual Action Plan (“Plan”) with funding recommendations for public services and capital projects in 2023-24.

The City of Escondido would like to invite feedback from the public on the Plan. The Plan will be posted for a 30-day public comment period from July 6, 2023until August 9, 2023. The Plan is available for a review on the City’s website at https://escondido.org/housing-and-neighborhood- services or the Housing and Neighborhood Services Division at Escondido City Hall at 201 N.

Broadway, Escondido, CA 92025. Further information or public comments can be submitted to Rodrigo Carrasco at 760-839-4564 or [email protected] in the Housing and Neighborhood Services Division.

If you challenge the item described above in court, you may be limited to raising only those issues that you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Escondido City Council at or prior to the hearing.

The City of Escondido remains committed to complying with the Americans with Disabilities Act (“ADA”). Qualified individuals with disabilities who wish to participate in City programs, services, or activities and who need accommodations are invited to present their requests to the City by filing out a Request for Accommodations Form or an Inclusion Support Request Form for Minors, or by calling 760-839-4643, preferably at least 72 hours in advance of the event or activity. Forms can be found on the City’s website at: https://www.escondido.org/americans-with- disabilities-act

PUBLIC COMMENT: If you would like to have a comment read aloud at the City Council public hearing (not to exceed three minutes), please submit the comment to: https://escondido- ca.municodemeetings.com/bc-citycouncil/webform/public-comment. All comments received from the public will be made a part of the record of the meeting.

12 Item1.

CIUDAD DE ESCONDIDO

VIVIENDA Y SERVICIOS AL VECINDARIO
201 N. BROADWAY
ESCONDIDO, CA 92025-2798
760-839-4841

AVISO DE AUDIENCIA PÚBLICA Y PERÍODO DE COMENTARIOS PÚBLICOS DE 30 DÍAS

PLAN DE ACCIÓN DEL AÑO FISCAL 2023-2024 PARA
Desarrollo Comunitario de Beca Para Bloque (“CDBG”) Y Sociedad de Inversión (HOME)

POR MEDIO DEL PRESENTE AVISO SE INFORMA que el consulado de la Ciudad de Escondido realizará una Audiencia Pública para consider ar y adoptar el Plan de Acción de un A ño para el A ño Fiscal 2023-2024 para el Desarrollo Comunitario de Beca Para Bloque (CDBG), fondos de Sociedad de Inversión (HOME), e ingresos del Programa HOME (“HOME PI”). d. La audiencia pública se realizará el miércoles 9 de agosto del 2023 a las 5:00 p.m., en la Sala Consistorial del municipio de Escondido, 201 N. Broadway, Escondido.

La Ciudad de Escondido es una jurisdicción con derecho a fondos y anticipa recibir $ 2,250,048 en fondos federales para los programas CDBG ($ 1,446,858), HOME ($ 712,111) y HOME PI ($ 91,079) en el año fiscal 2023-24. Estos fondos federales están destinados a servir a personas y áreas de ingresos bajos y moderados, eliminar deterioración y marginal es en los vecindarios y atender necesidades urgentes dentro de la Ciudad de Escondido. La Ciudad de Escondido lanzó una Solicitud de Propuesta en junio del 2023 solicitando aplicaciones de CDBG y recibió 20 propuestas de solicitantes externos e internos. La Ciudad ha publicado un borrador del Plan de Acción Anual ("Plan") con recomendaciones de fondos para servicios públicos y proyectos de capital en 2023-24.

La Ciudad de Escondido desea invitar a que el público de sus comentarios sobre el Plan. El Plan se publicará para un período de comentarios públicos de 30 días desde el 6 de julio de 2023 hasta el 9 de agosto de 2023. El Plan está disponible para su revisión en el sitio web de la Ciudad en https://escondido.org/housing-and-neighborhood-services o en la División de Servicios de Vivienda y Vecindarios en el Ayuntamiento de Escondido en 201 N. Broadway, Escondido, CA 92025. Se puede enviar más información o comentarios públicos a Rodrigo Carrasco al 760-839-4564 o
[email protected] en la División de Vivienda y Servicios al Vecindario.

Si cuestiona el asunto descrito anteriormente ante una corte, podría quedar limitado a proponer sólo aquellos asuntos que usted o alguien más haya propuesto en la audiencia pública señalada en este aviso, o en la correspondencia escrita entregada al Concejo Municipal de Escondido durante o antes de la audiencia.

La Ciudad de Escondido sigue comprometida a cumplir con la Ley de Estadounidenses con Discapacidades (ADA). Las personas calificadas con discapacidades que deseen participar en programas, servicios o actividades de la Ciudad y que necesiten adecuaciones están invitadas a presentar sus solicitudes a la Ciudad llenando un Formulario de Solicitud de Adecuaciones o un Formulario de Solicitud de Apoyo de Inclusión para Menores, o llamando al 760-839-4643, preferiblemente al menos 72 horas antes del evento o actividad. Los formularios se pueden encontrar en el sitio web de la Ciudad en: https://www.escondido.org/americans-with-disabilities- act

COMENTARIO PÚBLICO: Si desea que un comentario se lea en voz alta en la Audiencia Pública del Concejo Municipal (que no exceda de tres minutos), por favor envié el comentario a: https://escondido-

13 Item1.
ca.municodemeetings.com/bc-citycouncil/webform/public-comment. Todos los comentarios recibidos del publico formaran parte del record de la junta.

Zack Beck
City Clerk
July 6, 2023

Published in THE ESCONDIDO TIMES-ADVOCATE
07/06/23
14 Item1.

STAFF REPORT

August 9, 2023
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER (COUNCIL)

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers:
374999 – 375161 dated July 05, 2023
375162 – 375371 dated July 12, 2023
375372 – 375633 dated July 19, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes)

FISCAL ANALYSIS
The total amount of the warrants for the following periods are as follows:

June 29 – July 05, 2023, is $1,050,252.00
July 06 – July 12, 2023, is $8,918,368.04
July 13 – July 19, 2023, is $7,908,760.26

BACKGROUND

The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the current budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting.

15 Item2.

July 12, 2023 Escondido City Council Minutes Page 1 of 1

SPECIAL MEETING / WORKSHOP
9:00 a.m. Special Meeting

1. CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

2. ORAL COMMUNICATION
Patricia Borchman – Requested a revenue measure be placed on the 2024 ballot.

Mark Skovorodko – Requested the City Council improve the quality of life in Escondido.

3. VISIONING AND STRUCTURAL DEFICIT STRATEGY WORKSHOP
Council commenced work on establishing what “essential City services” are, and what its work plan for the next three years will entail. While their work will continue in another session which will be scheduled in the next couple of months, the Council committed to eliminating the City’s structural deficit as their top priority. They also requested to review possible revenue options as soon as possible.

4. ADJOURNMENT
Mayor White adjourned the meeting at 3:30 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

16 Item3.

July 19, 2023 Escondido City Council Minutes Page 1 of 10

CLOSED SESSION
3:30 PM

CALL TO ORDER

1. Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

CLOSED SESSION

I. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)

a. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Police Officers' Association Sworn Personnel Bargaining Unit

b. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Police Officers' Association Non-Sworn Personnel Bargaining Unit

c. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Firefighters’ Association Safety and Non-safety Bargaining Unit

d. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: ECEA Unit (SUP)

e. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Maintenance and Operations Bargaining Unit (Teamsters Local 911 and ACE)

17 Item3.

July 19, 2023 Escondido City Council Minutes Page 2 of 10

II. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8)

a. Property: 272 E. Via Rancho Pkwy (North County Mall) Agency Negotiator: Sean McGlynn, City Manager or designee Negotiating Parties: Larry Green, L. Green Investment & Development, LLC Under Negotiation: Price and Terms of Potential Ground Lease (former Nordstrom)

b. Property: 272 E. Via Rancho Pkwy, Escondido (North County Mall) Agency Negotiator: Sean McGlynn, City Manager or designee Negotiating Parties: Steerpoint Capital
Under Negotiation: Price and Terms of Ground Lease Amendment

III. CONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION (Government Code § 54956.9(d)(1))

a. Touchstone MF Fund I, LLC v. City of Escondido
San Diego Superior Court Case No. 37-2020-00020856-CU-BC-NC

ADJOURNMENT
Mayor White adjourned the meeting at 4:47 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

18 Item3.

July 19, 2023 Escondido City Council Minutes Page 3 of 10

REGULAR SESSION
5:00 PM Regular Session

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

PRESENTATION
Badge Pinning Ceremony - Fire Chief John Tenger

CLOSED SESSION REPORT

ORAL COMMUNICATIONS
Beck Rapp – Expressed concern regarding mental health in Escondido.

CONSENT CALENDAR
Motion to the consent calendar, except item 11: Morasco; Second: C. Garcia; Approved: 5-0

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) -

2. APPROVAL OF WARRANT REGISTER (COUNCIL)
Request approval for City Council and Housing Successor Agency warrant numbers:
 374431 – 374606 dated June 14, 2023
 374607 – 374830 dated June 21, 2023
 374831 – 374998 dated June 28, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes) 19 Item3.

July 19, 2023 Escondido City Council Minutes Page 4 of 10

3. APPROVAL OF MINUTES: Regular Meetings of June 14, 2023 and June 21, 2023

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS –

5. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2000-01 (HIDDEN

TRAILS)
Request the City Council adopt Resolution 2023-80, setting the Special Tax Levy for Community Facilities District No. 2000-01 (Hidden Trails)(the “District”) for Fiscal Year 2023/24. (File Number 0685-10)
Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)
Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2023-80

6. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2006-01 (EUREKA RANCH)
Request the City Council adopt Resolution 2023-81, setting the Special Tax Levy for Community Facilities District No. 2006-01 (Eureka Ranch) (the “District”) for Fiscal Year 2023-

24. (File Number 0685-10)
Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)
Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2023-81

7. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2020-2 (THE

VILLAGES)
Request the City Council adopt Resolution 2023-83, setting the Special Tax Levy for Community Facilities District No. 2020-2 (The Villages)(The “District”) for Fiscal Year 2023/24. (File Number 0685-10)
Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance)
Presenter: Christina Holmes, Director of Finance
a) Resolution 2023-83
20 Item3.

July 19, 2023 Escondido City Council Minutes Page 5 of 10

8. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ECLIPSE/MOUNTAIN HOUSE)
Request the City Council adopt Resolution 2023-84, setting the Special Tax Levy for Community Facilities District No. 2022-1(Eclipse/Mountain House) (the “District”) for Fiscal Year 2023-24. (File Number 0685-10)
Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2023-84

9. AWARD PURCHASE OF FUELS FOR FISCAL YEAR 2024
Request the City Council adopt Resolution No. 2023-92, approving the purchase of unleaded gasoline and diesel fuel from SC Fuels, Inc. in the amount of $1,550,000 utilizing a Cooperative Purchase Agreement between the City of San Diego and SC Fuels, RFP No. 10089315-18-K, pursuant to Escondido Municipal Code Chapter 10, Article 5, Section 10-91. (0600-10; A-3465)
Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works)
Presenter: Jeramiah Jennings, Fleet Maintenance Superintendent a) Resolution No. 2023-92

10. LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FINAL ENGINEER'S REPORT FOR FISCAL YEAR 23/24
Request the City Council approve Resolution Number 2023-87 approving the Assessment Engineer’s Report and the annual levy and collection of assessments for the City of Escondido Landscape Maintenance Assessment District (“LMD”) (Attachment “1”, LMD Map) for Zones 1 through 38 for 2023/2024 fiscal year. (File Number 0685-10) Staff Recommendation: Approval (Development Services Department: Andrew Firestone, Development Services Director, and Julie Procopio, City Engineer) Presenter: Brad Mason, Landscape Project Manager
a) Resolution No. 2023-87

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July 19, 2023 Escondido City Council Minutes Page 6 of 10

11. CONSULTING AGREEMENT WITH FEHR & PEERS TO PREPARE A MOBILITY ELEMENT UPDATE

INCLUDING A COMPREHENSIVE ACTIVE TRANSPORTATION STRATEGY AND VOUCHER

AGREEMENT WITH CALSTART FOR FUNDING A COMMUNITY TRANSPORTATION NEEDS

ASSESSMENT
Request the City Council take the following actions: Adopt Resolution No. 2023-91 authorizing the Mayor to execute, on behalf of the City, a Consulting Agreement with Fehr & Peers to prepare the Mobility Element Update including a Comprehensive Active Transportation Strategy and Community Transportation Needs Assessment in an amount not to exceed $525,340; and adopt Resolution No. 2023-69 authorizing the Mayor to execute, on behalf of the City, a Voucher Agreement with CALSTART, to receive $100,000 through Clean Mobility Options, to fund the preparation of a Community Transportation Needs Assessment by Fehr & Associates. (File Number 0600-10; A-3466)
Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director and Julie Procopio, City Engineer) Presenter: Edd Alberto, City Traffic Engineer
a) Resolution No. 2023-91
b) Resolution No. 2023-69
Jacob Mandel – Expressed support for this item.

Motion: Martinez; Second: Morasco; Approved: 5-0

12. APPROVE CHANGE ORDER TO COMPLETE ADDITIONAL WORK FOR THE STORM DRAIN

REHABILITATION PROJECT, PHASE III
Request the City Council adopt Resolution No. 2023-90 authorizing a change order with Sancon Technologies, Inc. in an amount not to exceed $551,361.23 to add rehabilitation of two 66" storm drain pipelines to the Storm Drain Rehabilitation, Phase III project (“Project”). (File Number 0600-10)
Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services and Julie Procopio, City Engineer) Presenter: Jonathan Schauble, Principal Civil Engineer
a) Resolution No. 2023-90

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July 19, 2023 Escondido City Council Minutes Page 7 of 10

13. SAN DIEGO DROWNING PREVENTION FOUNDATION GRANT - $3,000 Request the City Council adopt Resolution No. 2023-79 authorizing the Director of Communications & Community Services to receive a $3,000 grant from the San Diego Drowning Prevention Foundation. (File Number 0480-70)
Staff Recommendation: Approval (Community Services: Joanna Axelrod, Deputy City Manager/Director of Communications and Community Services) Presenter: Robert Rhoades, Deputy Director of Community Services a) Resolution No. 2023-79

14. LIBRARY CRITICAL INFRASTRUCTURE PROJECT MANAGEMENT CONSULTING AGREEMENT

WITH GRIFFIN STRUCTURES
Request the City Council adopt Resolution No. 2023-86, authorizing the Mayor to execute a Consulting Agreement with Griffin Structures in the amount of $798,000 for the project and construction management services related to the Escondido Public Library Critical Infrastructure and Modernization Project (“Project”). (File Number 0600-10; A-3467) Staff Recommendation: Approval (Communications & Community Services Department:

Joanna Axelrod, Deputy City Manager/Director of Communications & Community Services) Presenter: Joanna Ax elrod, Deputy City Manager/Director of Communications & Community Services
a) Resolution No. 2023-86

15. REVIEW AND UPDATE OF CITY COUNCIL INTERAGENCY AND SUBCOMMITTEE ASSIGNMENTS Request the City Council ratify members to serve on the Mayor/Council boards and subcommittees per the attached listing. (File Number 0120-10) Staff Recommendation: Approval (City Clerk's Office: Zack Beck, City Clerk) Presenter: Zack Beck, City Clerk

23 Item3.

July 19, 2023 Escondido City Council Minutes Page 8 of 10

PUBLIC HEARING

16. EAST VALLEY SPECIFIC PLAN
Request the City Council establish the East Valley Specific Plan by adopting Resolution No. 2023-85, certifying the Program Environmental Impact Report prepared for the East Valley Specific Plan; and adopting Ordinance No. 2023-10, approving the East Valley Specific Plan and rezoning the East Valley Specific Plan area from General Commercial (CG), Hospital Professional (HP), and Commercial Professional (CP), to Specific Plan (S-P). (File Number 0810- 20)
Staff Recommendation: Approval (Development Services D epartment: Andrew Firestine, Director of Development Services)
Presenter: Adam Finestone, City Planner
a) Resolution No. 2023-85
b) Ordinance No. 2023-10 (First Reading and Introduction) Joe Awad – Expressed opposition to this item.

Catherine Ferguson – Requested existing business uses in the East Valley Specific Plan be grandfathered in.

Mark Skovorodko – Expressed support for this item.

Kelly Brown – Expressed concern regarding this item.

Morasco – Adequate parking, businesses being reclassified, grandfathering businesses.

Eliminate affordable housing trust funds
Motion to approve the East Valley Specific Plan with the exception of allowing drive-thru facilities to continue operating with conditional uses; strike section 2.2.2. (1.1); strike the last sentence of 1.4; strike the following words from Section 2.2.4 (1.4) “increase the number of people who use transit” and replace with “other viable transit options”; strike section 3.2:

White; Second: Morasco; Approved: 5-0

24 Item3.

July 19, 2023 Escondido City Council Minutes Page 9 of 10

CURRENT BUSINESS

17. CITY OF ESCONDIDO’S WRITTEN RESPONSE TO THE SAN DIEGO COUNTY GRAND JURY REPORT TITLED “HOUSING IN SAN DIEGO COUNTY”
Request the City Council adopt Resolution No. 2023-78 approving the written response of the City of Escondido to the 2022/2023 San Diego County Grand Jury Report titled “Housing in San Diego County.” (File Number 0875-70)
Staff Recommendation: Approval (City Attorney’s Office: Michael McGuinness, City Attorney; Development Services Department: Andrew Firestine, Director of Development Services) Presenter: Michael McGuinness, City Attorney
a) Resolution No. 2023-78
Motion: Morasco; Second: C. Garcia; Approved: 5-0

18. COOL ZONE PRACTICES
Request the City Council receive and file a presentation on Cool Zone Practices. (File Number 0810-15)
Staff Recommendation: Receive and File (City Clerk's Office: Zack Beck, City Clerk) Presenter: Zack Beck, City Clerk
Lisa Dahl – Requested more Cool Zones be established in Escondido.

Patricia Serrano – Requested more Cool Zones be established in Escondido.

Tonia Bowman – Requested more Cool Zones be established in Escondido.

Georgine Tomasi – Requested more Cool Zones be established in Escondido.

No Council Action Required.

FUTURE AGENDA

19. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.
25 Item3.

July 19, 2023 Escondido City Council Minutes Page 10 of 10

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most current infor mation from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ORAL COMMUNICATIONS
None.

ADJOURNMENT
Mayor White adjourned the meeting at 7:57 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

26 Item3.
27 Item4.

STAFF REPORT

August 9, 2023
File Number 0440-35

SUBJECT

ESTABLISHING THE PROPERTY TAX RATE AND FIXED CHARGE ASSESSMENTS FOR GENERAL

OBLIGATION BONDED INDEBTEDNESS

DEPARTMENT
Finance

RECOMMENDATION
It is requested that the City Council adopt Resolution No. 2023-93 to establish the property tax rate and fixed charge assessments for bonded indebtedness for Fiscal Year 2023/24.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Michelle Collett, Revenue Manager

FISCAL ANALYSIS
A total of $4, 822,500 will be needed for the annual debt service payments for the General Obligation Bonds. This represents $1,148,750 due in March 2024 and $3,673,750 due in September 2024.

PREVIOUS ACTION
The City Council certified the results of the November 2, 2004, election approving Proposition P on December 1, 2004. On July 12, 2006, the City Council authorized the issuance and sale of the General Obligation Bonds. The Bonds provided financing for the construction of three new fire stations, a replacement of Fire Station 1, and a combined Police and Fire Headquarters Facility.

The City of Escondido General Obligation Bonds, Election of 2004, Series A (Fir e, Police, and Emergency Response Measure) were refunded on June 9, 2015 by the issuance of the General Obligation Refunding Bonds Series 2015. The Bonds mature on September 1, 2036 . Prior year’s Resolution No. 2022-112 was adopted on August 10, 2022.

BACKGROUND
General Obligation Bonds are secured by the legal obligation to levy an ad valorem property tax upon taxable property within the City in an amount sufficient to pay the yearly debt service (principal and interest) payment. The debt service payment for March 2024 is $1,148,750 and the debt service payment for September 2024 is $3,673,750. The City is required to set a tax rate to meet these financial obligations. 28 Item5.

The assessed value for property in Escondido is used as the basis for applying the levy to taxable properties.

The starting point for calculating the property tax levy is the current year taxable assessed value. To this assessed value amount, a delinquency factor is applied. The City’s fiscal year 2022/23 delinquency rates for secured and unsecured property are estimated to be 1.16 percent and 0.69 percent, respectively, and the five-year average delinquency rates were 1.07 percent and 1.51 percent.

For Fiscal Year 2023/24, the City has used a 3 percent delinquency factor in calculating the property tax rate for both secured and unsecured property. The delinquency factors used in calculation of the property tax rate for the past five tax years 201 8/19 to 2022/23 were 2.5 percent, 2.5 percent, 3.0 percent, 3.0 percent, and 3.0 percent respectively.
% Increase

(Decrease)
Description FY 2022/23 FY 2023/24 in Valuation

Secured Assessed
Valuation $19,176,547,629.00 $20,809,203,975.00
Less Delinquency
Factor (561,035,207.00) (624,276,119.25)
Net Collectible
Secured 18,615,512,422.00 20,184,927,855.00 8.43%

Unsecured Assessed
Valuation 561,035,207.00 667,737,444.00
Less Delinquency
Factor (16,831,056.21) (20,032,123.32)
Net Collectible
Unsecured 544,204,150.79 647,705,320.68 19.02%

TOTAL ALL NET
COLLECTIBLE $19,159,716,572.79 $20,832,633,175.68 8.73% 29 Item5.

The County of San Diego has provided to the City the estimated 202 3/24 Fiscal Year assessed valuations to be used for the tax rate computation. A two -year comparison of the City’s secured and unsecured assessed valuations, as adjusted by the applicable an nual delinquency factor, is shown below. The net collectible assessed valuations increased by approximately 8.43 percent. This increase in net collectible assessed value will cause a decrease in the calculated property tax rate for fiscal year 2023/24.

In order to collect the required debt service, the property tax rate will be set at 0.0 1748 per $100 of assessed value. This represents $ 17.48 per $100,000 of assessed value, resulting in a decrease of $ 2.19 when compared to last year’s property tax rate of $19.63.

RESOLUTIONS
a. Resolution No. 2023-93
b. Resolution No. 2023-93 Exhibit “A” Certificate and Calculation of Property Tax Rate for fiscal year 2023/24

ORDINANCES

ATTACHMENTS

30 Item5.

RESOLUTION NO. 2023-93

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ESTABLISHING THE PROPERTY

TAX RATE AND FIXED CHARGE ASSESSMENTS FOR
BONDED INDEBTEDNESS FOR FISCAL YEAR 2023/24
WHEREAS, the City Council of the City of Escondido desires to establish the rate of property tax required to generate an amount of revenue from the tax base to provide sufficient moneys to pay debt service on the voter approved bonded indebtedness payable during the fiscal year ending June 30, 2024; and
WHEREAS, the total net taxable secured assessed valuation of the City of Escondido is now estimated at $20,809,203,975 full value; and
WHEREAS, the total net taxable unsecured assessed valuation of the City of Escondido is now estimated at $667,737,444 full value.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, as follows:

1. That the above recitations are true.

2. That the property tax rate within the City for the City of Escondido General Obligation Refunding Bonds, Series 2015 (Fire, Police, and Emergency Response Measure) for the fiscal year ending June 30, 2024, be and hereby is established at $0.01748 per $100 assessed value.

3. That the City Manager and the Director of Finance are each hereby directed and authorized to take any and all actions necessary to ensure that such property tax rate is enrolled with the County of San Diego Auditor & Controller, including, but not limited to, filing the Tax Amount Rate Certificate attached hereto as Exhibit “A” and is incorporated by this reference. 31 Item5.

Resolution No. 2023-93
Exhibit A

Page 1 of 2 ends

$61,520,000

CITY OF ESCONDIDO
San Diego County, California
General Obligation Refunding Bonds, Series 2015
(Fire, Police and Emergency Response Measure)

I, Christina Holmes, hereby certify that I am the Finance Director of the City of Escondido (the “City”), and as such I am authorized to execute this certificate on behalf of the City.

I hereby further certify that in connection with the City’s $61,520,000 General Obligation Refunding Bonds, Series 2015 (Fire, Police and Emergency Response Measure) the City Council has adopted the attached Resolution No. 2023-93 establishing the tax rate a nd fixed charge assessments for bonded indebtedness for 2023/24 and attached herewith is the summary for the calculation of the property tax rate for 2023/24.

IN WITNESS WHEREOF, I hereunto set my hand this 9th day of August, 2023.

CITY OF ESCONDIDO
By:

Christina Holmes, Director of Finance
32 Item5.

Resolution No. 2021-79
Exhibit A

Page 2 of 2 ends

Delinquency FY 23-24
Rate at Tax Rate

3.00% Calculation
Resources Required:

Annual Debt Service Payments:

March 2024 1,148,750.00$
September 2024 3,673,750.00
Total Required 4,822,500.00$
Resources Available:

Cash as of June 30, 2023 4,716,223.18
Debt Service Payment, September 2023 (3,598,500.00)
Payment of Trustee Fees (1,000.00)
Consultant Fees (1,230.00)
Remaining Cash Resources after next Debt Service Payment 1,115,493.18 FY 22-23 Property Tax Revenue Apportionment #12,
not yet recorded in G/L (estimated) 51,864.27
Total Resources Available for FY 23-24 Debt Service Payments 1,167,357.45 Net FY 23-24 Tax Revenues needed for Debt Service Requirement 3,655,142.55 Unsecured Calculation:

FY 23-24 Taxable Unsecured Assessed Valuation for the City - without Homeowners Exemptions 667,737,444.00
Delinquency Factor (20,032,123.32)
Estimated Net Collectible Unsecured Asssessed Valuation 647,705,320.68 FY 23-24 Tax Rate Per $100 of Net Assessed Value 0.019630 Total Unsecured times Tax Rate divided by $100 127,144.55 Total Remaining FY 23-24 Debt Service Coverage Requirement to be Levied against Secured Property 3,527,998.00$
Secured Calculation:

FY 23-24 Taxable Secured Assessed Valuation for the City - without Homeowners Exemptions 20,809,203,975.00
Delinquency Factor (624,276,119.25)
Estimated Net Collectible Secured Asssessed Valuation 20,184,927,855.75 Net FY 23-24 Collectible Taxable Secured Assessed Valuation divided by $100 $201,849,278.56
FY 23-24 Tax Rate per $100 of Net Assessed Value 0.01748 City of Escondido
General Obligation Refunding Bonds, Series 2015
Calculation of Debt Service Requirements
Description
Fiscal Year 2023-24
33 Item5.

STAFF REPORT

August 9, 2023
File Number 0600-10; A-3104-1

SUBJECT
SECOND AMENDMENT TO LEASE AGREEMENT WITH DAVE MCMAHON CONSTRUCTION, INC AT 525

NORTH QUINCE STREET

DEPARTMENT
City Manager; Economic Development

RECOMMENDATION
Request the City Council approve Resolution No. 2023-98 authorizing the Mayor to execute a Second Amendment to Lease Agreement with McMahon Construction for the City owned property located at 525 North Quince Street.

Staff Recommendation: Approval (City Manager Department: Jennifer Schoeneck, Deputy Director of Economic Development)

FISCAL ANALYSIS
The City will receive annual revenue in the amount of $75,600, which will increase by three percent each year.

PREVIOUS ACTION
Resolution Number 2017 -108 was adopted by the City Council on July 19, 2017 , authorizing a lease agreement with Dave McMahon Construction . Resolution Number 2020 -79 was adopted by the City Council on June 24, 2020 authorizing the First Amendment to the Lease Agreement with Dave McMahon Construction, amending the lease rate and term.

BACKGROUND
The former structure on this site was razed in 2013 in an effort to eliminate blight and enhance efforts to discourage trespassing and other illegal activities. The City leased the site to Dave McMahon Construction, Inc. for storage of construction equipment and materials, as an interim use, until redevelopment of the area can be completed.

34 Item6.

The City Council approved a Lease Agreement on November 20, 2013, which contained an option to extend the term until August 11, 2017. A second lease was approved by the City Council on July 19, 2017 and expired on August 11, 2020. A First Amendment to the Lease was approved by the City Council on June 24, 2020, extending the lease term until July 31, 2023 . Thereafter, the lease went to a month -to- month tenancy.

The proposed Second Amendment will extend the lease until July 31, 2024 and may be renewed for two additional annual periods. The Lease is subject to early termination by either party with a 60-day written notice. The new Lease rate will be increased from $33,420 per year to $75,600 per year and will be increased by three-percent annually.

RESOLUTIONS
a. Resolution No. 2023-98
b. Resolution No. 2023- Exhibit “A” – Second Amendment to Lease Agreement

35 Item6.

RESOLUTION NO. 2023-98

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 LEASE AGREEMENT WITH DAVE
McMAHON CONSTRUCTION, INC. FOR THE PROPERTY
LOCATED AT 525 NORTH QUINCE STREET

WHEREAS, the City and Dave McMahon Construction, Inc. (“Lessee”) entered into a lease agreement dated October 19, 2017 for interim use of 525 North Quince Street as construction materials and equipment storage; and
WHEREAS, the City and Lessee entered into a First Amendme nt to Lease Agreement with Dave McMahon Constrcution, Inc, extending the term of the lease until July 31, 2023 and allows for continued occupancy on a month to month basis; and
WHEREAS, the City Council desires at this time and deems it to be in the best interest to approve a Second Amendment to the Lease Agreement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California , as follows:

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute , on behalf of the City, a Second Amendment to the Lease Agreement with Dave McMahon Construction, Inc. in substantially the same form as attached to this Resolution as Exhibit “A” and incorporated by this reference, and subject to final approval as to form by the City Attorney.
36 Item6.

S
econd Amendment to Lease Agreement
1 SECOND AMENDMENT TO LEASE AGREEMENT
(525 N
orth Quince Street)
This SECOND Amendment to Lease Agreement (“SECOND Amendment”) is made and entered into as of this __ day of ________, 2023 (“Effective Date”), by and between the City of Escondido, a California municipal corporation (“City”), and Dave McMahon Construction, Inc. (“Lessee”). (The City and Lessee are collectively referred to herein as the “Parties.”)
W
HEREAS:

A. The City and Lessee entered into a l ease agreement dated September 20, 2017 (“Lease”) for the lease of certain real property owned by the City located at 525 North Quince Street, Escondido, California 92025, for the storage of construction materials and equipment; and
B. The C
ity and Lessee entered into the FIRST AMENDMENT TO LEASE AGREEMENT on July 30, 2020; and
C. S
ection 5.1 of t he Lease allowed for a Term of one year, expiring on July 31, 2021 and may be renewed for two additional annual periods; and D.

Section 7.1 of the Lease indicates a monthly rate of $2,785, which is increased annually by 3%; and
E. The Cit
y and Lessee desire to amend the Lease to extend the Term of the lease to July 31, 2024 and increase the lease rate to $6,300 per month , which shall be increased by 3% annually.

NOW, THEREFORE, in consideration of the above premises and the promises and covenants contained herein and in the Lease, it is mutually agreed by and between the Parties that the Lease shall be amended, modified, and supplemented, as follows:

1. P
ursuant to Section 5.1 of the Lease, the Term of the Lease is hereby renewed for one year commencing on August 1, 2023, and expiring on July 31, 2024. At the end of the Term, this Lease may be renewed for two additional annual periods, upon mutual written agreement by the City and Lessee.

2. P
ursuant to Section 7.1 of the Lease, the Rental Rate is hereby increased to $6,300 per month. Rent shall be increased by 3% annually , if the Lease is renewed pursuant to Section 1 of this SECOND Amendment.

3. A
ll other terms and conditions of the Lease shall remain unchanged and in full force and effect.

Resolution No. 2023-98
Exhibit "A"

Page 1 of 2 ends

37 Item6.

Second Amendment to Lease Agreement
2 4. This SECOND Amendment, and the Lease, together with any attachments thereto, constitute the entire understanding of the P arties, and there are no other terms or conditions, written or oral, controlling this matter.

IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the Effective Date.

CITY OF ESCONDIDO

Date: By:

Dane White, Mayor

DAVE MCMAHON CONSTRUCTION, INC.

Date: By:

(Print Name & Title)

Approved as to Form:

Office of the City Attorney
Michael McGuinness, City Attorney

By:

Resolution No. 2023-98
Exhibit "A"

Page 2 of 2 ends

38 Item6.

STAFF REPORT

August 09, 2023
File Number 1020-05

SUBJECT

RETENTION OF EXISTING SPEED LIMITS

DEPARTMENT
Development Services Department, Engineering Division

RECOMMENDATION
It is requested the City Council adopt Ordinance No. 2023-09 retaining the posted speed limits on three (3) street segments, portions of Mountain View Drive, Sheridan Avenue, and W. Citracado Parkway.

Staff Recommendation: Approval (Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Edd Alberto, City Traffic Engineer

FISCAL ANALYSIS
There is no cost associated with retaining speed limits, as all existing speed limit signs and sign posts will remain in place.

BACKGROUND
Speed plays a critical role in the cause and severity of crashes. In a collision between a vehicle and a pedestrian, for instance, speed influences the severity of injury and fatality risk of a pedestrian. Studies have shown that the severity of the injury and likelihood of fatality to the pedestrian increases as speed increases. According to the 1999 National Highway Traffic Safety Administration (NHTSA) “Literature Review on Vehicle Travel Speeds and Pedestrian Injuries” study, fatality and serious injury rates increase substantially when travel speeds rise.

In October 2021, Governor Gavin Newsom signed Assembly Bill (AB) 43. The bill allows the City to maintain and enforce existing speed limits and roll back speed limit increases that occurred several years ago, if the increase was not based on any physical changes to the design of the street. AB 43 took effect on January 1, 2022 and made a number of additions and modifications to the California Vehicle Code ( CVC) that authorize local jurisdictions to set lower speed limits on certain streets.

CVC Section 40802 requires that Engineering and Traffic Surveys (E&TS) are conducted to establish speed limits and to enforce those speed limits using radar or other speed measuring devices. These surveys must be updated periodically (every five, seven, or 14 years, depending upon specific criteria), to ensure the 39 Item7.

speed limits reflect current conditions as dictated by the 2022 CVC. These surveys must be conducted in accordance with applicable provisions of Section 627 “Engineering and Traffic Survey” of the CVC.

CVC Section 22358.6 requires local authorities to round speed limits to the nearest five (5) miles per hour of the 85th percentile of the free -flowing traffic. In acco rdance with CVC Section 22358.8, if a local authority, after completing an E&TS, finds that the speed limit is still more than is reasonable or safe, the local authority may, by ordinance, retain the current speed limit or restore the immediately prior spe ed limit if that speed limit was established with an E&TS and if a registered engineer has evaluated the section of highway and determined that no additional general purpose lanes have been added to the roadway since completion of the traffic survey that established the prior speed limit.

Retention of Existing Speed Limits by Ordinance

Table 1 shows the results of the E&TS for three (3) street segments that were surveyed by Development Services staff. Based on recent E&TS, the 85th percentile speed would result in the speed limit increasing from the existing posted speed limit. The last column shows the recommended speed limit to be retained for each street segment as evaluated by a registered engineer.

Table 1: Comparison of existing speed limit and speed limit if rounded from 85th percentile speed.

Street Name
Segment Survey
Date
Rounded 85th
Percentile
Speed (MPH)
Retained
Speed Limit
(MPH) From To
W Citracado
Parkway
W Valley
Parkway Scenic Trail Way 6/8/2023 45 35
(25 WCAP)
Mountain
View Drive Glenridge Road City Limits 6/13/2023 40 35
Sheridan
Avenue Ash Street Conway Drive 6/6/2023 30 25
*As used in the table above, “WCAP” shall mean “when children are preset.”

Staff recommends retaining the existing posted speed limit on three (3) street segments by ordinance as provided by CVC Section 22358.8. The speed surveys listed in Table 1 have been evaluated. The E&TS finds that rounding of the 85th percentile speed would result in a speed limit that is more than is reasonable or safe, and these sections of highway have had no additional general-purpose lanes added to the roadway since completion of the traffic survey that established the prior speed limit.

Recommendation
The Transportation and Community Safety Commission voted to recommend approval to retain the existing speed limits for three (3) street segments at their meeting on July 13, 2023. 40 Item7.

ORDINANCE
a. Ordinance 2023-09

41 Item7.

ORDINANCE NO. 2023-09

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, RETAINING THE EXISTING

SPEED LIMIT ON FOUR STREET SEGMENTS

The City Council of the City of Escondido, California does ordain as follows:

SECTION 1. The City Council makes the following findings:
a) On October 8, 2021, the State of California approved Assembly Bill 43, which took effect January 1, 2022 and amends the California Vehicle Code as it relates to speed limits. b) California Vehicle Code Section 40802 requires that enforcement of declared prima facie speed limits on a particular section of a highway or state highway be justified by an Engineering and Traffic Survey conducted no more tha n seven years prior to the date of the alleged violation . However, if a registered engineer evaluates the section of the highway and determines that no significant changes in roadway or traffic conditions have occurred including, but not limited to, changes in adjoining property or land use, roadway width, or traffic volume, then enforcement of a declared prima facie speed limit on a particular section of a highway or state highway may be justified by an Engineering and Traffic Survey conducted no more than 14 years prior to the date of the alleged violation. c) California Vehicle Code section 22357 provides that w henever a local authority determines upon the basis of an engineering and traffic survey that a speed greater than 25 miles per hour would facilitate the orderly movement of vehicular traffic and would b e reasonable and safe upon any street other than a state highway otherwise subject to a prima facie limit of 25 miles per hour, the local authority may by ordinance determine and declare a prima facie speed limit of 30, 35, 40, 45, 50, 55, or 60 miles per hour or a maximum speed limit of 65 miles per hour, whichever is found most appropriate to facilitate 42 Item7.

the orderly movement of traffic and is reasonable and safe. California Vehicle Code section 22357 further requires that the declared prima facie or maximum speed limit shall be effective when appropriate signs giving notice thereof are erected upon the street and shall not thereafter be revised except upon the basis of an engineering and traffic survey. California Vehicle Code section 22357 does not apply to any 25-mile- per-hour prima facie limit which is applicable when passing a school building or the grounds thereof or when passing a senior center or other facility primarily used by senior citizens. d) California Vehicle Code section 22358 provides that whenever a local authority determines upon the basis of an engineering and traffic survey that the limit of 65 miles per hour is more than is reasonable or safe upon any portion of any street other than a state highway where the limit of 65 miles per hour is applicable, the local authority may by ordinance determine and declare a prima facie speed limit of 60, 55, 50, 45, 40, 35, 30, 25, 20, or 15 miles per hour, whichever is found most appropriate to facilitate the orderly movement of traffic and is reasonable and safe, which declared prima facie limit shall be effective when appropriate signs giving notice thereof are erected upon the street. e) Section 22358.8 was added to the California Vehicle Code as part of Assembly Bill 43, and allows the following:
(1) If a local authority, after completing an engineering and traffic survey, finds that the speed limit is still more than is reasonable or safe, the local authority may, by ordinance, retain the current speed limit or restore the immediately prior speed limit if that speed limit was established with an engineering and traffic survey and if a registered engineer has evaluated the section of highway and determined that no additional general purpose lanes have been added to the roadway since completion of the traffic survey that established the prior speed limit. 43 Item7.

(2) The section does not authorize a speed limit to be reduced by any more than five miles per hour from the current speed limit nor below the immediately prior speed limit. (3) A local authority shall issue only warning citations for violations of exceeding the speed limit by 10 miles per hour or less for the first 30 days that a lower speed limit is in effect as authorized by this section.
f) Escondido Municipal Code Section 28 -5 provides the City Council authority to establish and amend traffic schedules for speed zones.

SECTION 2: That upon consideration of the staff report, the recommendation of the Transportation Community and Safety Commission, and provisions of the State of California Vehicle Code (as amended by Assembly Bill 43 ), this City Council finds that retaining the speed limits for the street segments attached and incorporated to this Ordinance as Exhibit “A” is 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 administrativ e activities of the City that will not result in direct or indirect physical changes to the environment.

SECTION 4. SEVERABILITY. If any section, subsection sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional for an y reason by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions.

SECTION 5. As of the effective date of this ordinance, all ordinances or parts of ordinances in conflict herewith are hereby repealed.
44 Item7.

SECTION 6. The City Clerk is hereby directed to certify to the passage of this ordinance and to cause the same or a summary to be published one time within 15 days of its pass age in a newspaper of general circulation for the City of Escondido.
45 Item7.

Ordinance No. 2023-09
Exhibit “A”

Page 1 of 1 ends

ORDINANCE NO. 2023-09
EXHIBIT “A”

Street Name Segment Retained Speed
Limit (MPH) From To
W Citracado
Parkway
W Valley Parkway Scenic Trail Way 35
(25 WCAP*)
Mountain View
Drive
Glenridge Road City Limits 35
Sheridan Avenue Ash Street Conway Drive 25
*When Children Are Present
46 Item7.

STAFF REPORT

August 9, 2023
File Number 1050-20

SUBJECT

AMENDING TRAFFIC SCHEDULE FOR STOP SIGNS

DEPARTMENT
Development Services Department, Engineering Division

RECOMMENDATION
It is requested that the City Council adopt Resolution No. 2023-89, amending the traffic schedule for stop signs to add a minor-street stop control at the intersection of Gretna Green Way and Canyon Road.

Staff Recommendation: Approval (Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Edd Alberto, City Traffic Engineer

FISCAL ANALYSIS
Crosswalk improvements for the Classical Academy are estimated to be $24,000 and the cost to install the necessary signs and markings for Gretna Green Way and Canyon Road minor-street stop control is approximately $1,800. The re is adequate budget in FY23/24 Traffic Management Projects List C apital Improvement Program project to cover these costs.

BACKGROUND

Section 28 -5 of the Escondido Municipal Code provides that a schedule of stop intersections shall be adopted by the City Council. Staff recommends that the schedule be amended to reflect the addition of a minor-street stop control at the intersection of Gretna Green Way and Canyon Road.

ANALYSIS
As a part of the FY23/24 Traffic Management Project List, the Transportation and Community Safety Commission selected crosswalk improvements for the Classical Academy. During design for this project, staff conducted an engineering study determining that the Gretna Green Way approach to the intersection warranted minor-street stop control.

47 Item8.

The roadway corridor of Gretna Green Way between Canyon Road and Crisie Lane is classified as a “Residence District” as defined by the California Vehicle Code, and the posted speed limit is 25 mph. The roadway is a winding road with a down grade from Crisie Lane to Canyon Road.

The California Manual for Uniform Traffic Control Devices provides guidance when applying stop controls.

The use of stop signs on the minor -street approaches should be considered if engineering judgement indicates that a stop is always required because of one or more of the following conditions:
 The vehicular traffic volumes on the through street or highway exceed 6,000 vehicles per day;  A restricted view exists that requires road users to stop in order to adequately observe conflicting traffic on the through street or highway; and/or
 Crash records indicate that three or more crashes that are susceptible to correction by the installation of a STOP sign have been reported within a 12-month period, or that five or more such crashes have been reported with in a 2 -year period. Such crashes include right -angle collisions involving road users on the minor-street approach failing to yield the right-of-way to traffic on the through street or highway.

Staff has determined that the Gretna Green Way approach to Cany on R oad meets the condition for restricted views that requires the road user to stop in order to adequately observe conflicting traffic on Canyon Road.

The implementation of a minor-street stop control and associated markings at the intersection of Gretna Green Way and Canyon Road was presented to the Transportation and Community Safety Commission at their July 13, 2023. The Commission voted to recommend to the City Council minor-street stop control at this intersection.

RESOLUTION
a. Resolution No. 2023-89

48 Item8.

RESOLUTION NO. 2023-89

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, TO AMEND THE TRAFFIC

SCHEDULES FOR STOP INTERSECTIONS AND YIELD

INTERSECTIONS

WHEREAS, Escondido Municipal Code Section 28-5 provides that the City Council shall establish, and may amend a traffic schedule , among other conditions, for stop intersections (“Traffic Schedule”); and
WHEREAS, the City Council desires at this time and deems it to be in the best public interest to amend said Traffic Schedules.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California as follows:

1. That the above recitations are true.

2. That the Traffic Schedule for stop signs be amended to reflect the addition of one (1) new stop sign on Gretna Green Way at Canyon Road, making it a Minor-Street Stop controlled intersection.

49 Item8.

STAFF REPORT

August 9, 2023
File Number 0910-10

SUBJECT

APPROVE CHANGE ORDER TO COMPLETE ADDITION AL WORK FOR THE JUNIPER ELEMENTA RY

BIKE/PEDESTRIAN IMPROVEMENT PROJECT

DEPARTMENT
Development Services

RECOMMENDATION
It is r equested that the City Council adopt Resolution No. 2023-102 authorizing the City Manager to execute change orders to the construction contract in the amount of $241,743.87 for the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”).

Staff Recommendation: Approval (Development Services Department, Andrew Firestine, Director and Julie Procopio, City Engineer)

FISCAL ANALYSIS
There are adequate funds in the budget for the Felicita and Juniper Improvements Project to cover the cost of the proposed and anticipated change order amounts. The project is funded with State Active Transportation and TransNet funds. Available project budget designated for traffic signal (protected left turns at Escondido/Felicita) will be used to pay for the relocation of the traffic signal.

PREVIOUS ACTION
On November 28, 2018, the Council adopted Resolution No. 2018 -182 authorizing the City Engineer to execute an Active Transportation Grant agreement in the a mount of $1,336,000 for the Juniper Elementary Safe Routes to School project.

On December 7, 2022, The City Council adopted Resolution No. 2022-160, authorizing the award of the Juniper Elementary Bike/Pedestrian Improvement Project , to Granite Constructi on Company in the amount of $2,078,216.00.

BACKGROUND
The Project fills gaps in the sidewalk on Juniper Street between Chestnut Street and Vermont Avenue, installs upgraded pedestrian crossings, and Class II bicycles lanes to provide safer access to Juniper Elementary School. The Project will also improve the intersections of Juniper Street /Felicita Avenue and Escondido Boulevard /Felicita Avenue to provide protected left turns, pedestrian countdown timers, 50 Item9.

Accessible Pedestrian Signal (APS) pedestria n pushbutton (audible tones and vibrotactile surfaces ), and enhanced crosswalk striping. Additional project improvements include the installation of curb and gutter, driveway approaches, pedestrian ramps, street trees, storm drain upgrades, landscaping, and signage and striping upgrades.

Staff requests that the City Council authorize change orders to address unforeseen conditions encountered during construction of the Project, including the presence of shallow , conflicting and unmarked utilities, and unsuitable soil.

A summary of the change orders is provided in the table below:

Change Order Description Amount
Traffic Signal Relocation due to Foundation Conflicting with Rock $17,794.00 Fencing Relocation (owner constructed after survey) & Transitions $34,107.00 Change Orders Approved to Date $51,901.00

Over-excavate Unsuitable (Compressible) Soil and Place Concrete Slurry $81,125.44 Replace Ten Shallow/Conflicting Water Services $32,000.00 Protect and Accommodate Relocation of Shallow Utilities1 $45,000.00 Additional Asphalt Concrete Repairs and Retaining Wall Length $31,717.43 Additional Required Change Orders $189,842.87
Total $241,743.87
Staff is continuing to review and negotiate additional change order requests submitted by the Contractor in the amount of $85,000.89, for claimed inefficiencies and extended overhead related to working around shallow utilities.

Staff recommends authorization of change orders to the contract in an amount not to exceed $241,743.87. It is anticipated that additional change orders will fall within staff’s authority to negotiate and approve which is up to 10% of the authorized contract total.

RESOLUTIONS
a. Resolution No. 2023-102

1 Conflicting utilities include nine gas services, three sewer laterals and three electrical/communication conduit runs
51 Item9.

RESOLUTION NO. 2023-102

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE, ON BEHALF OF THE CITY,

CHANGE ORDERS TO THE PUBLIC IMPROVEMENT

AGREEMENT WITH GRANITE CONSTRUCTION

COMPANY FOR THE CONSTRUCTION OF THE JUNIPER

ELEMENTARY BIKE/PEDESTRIAN IMPROVEMENT

PROJECT

WHEREAS, the City Council has allocated funding in the adopted Capital Improvement Program (“CIP”) Budget for the Juniper Safe Routes to School Project and Transnet funding for street improvements; and
WHEREAS, on December 7, 2022, the City Council adopted Resolution No. 2022-160 authorizing execution of a Public Improvement Agreement with Granite Construction Company , in the amount of $2,078,216.00 for the construction of the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”); and
WHEREAS, the City Council recognizes that approval of change orders for the Project is required to continue and complete construction of the Project; and WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize the City Manager to execute construction change orders with Granite Construction Company in an amount not to exceed $241,743.87.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California , as follows:

1. That the above recitations are true.
52 Item9.

2. That the City Council authorizes the City Manager to execute, on behalf of the City, a construction c hange order with Granite Construction Company for the construction of the Juniper Elementary Bike/Pedestrian Improvement Project in an amount not to exceed $241,743.87.

3. That staff retains the authority to approve change orders up to ten -percent of the total contract amount in accordance with the Municipal Code.
53 Item9.

ORDINANCE NO. 2023-10R

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ADOPTING THE EAST VALLEY

SPECIFIC PLAN, AND ADOPTING AN AMENDMENT TO

THE CITYWIDE ZONING MAP TO CHANGE THE

DESIGNATION OF ALL PROPERTIES WITHIN THE EAST

VALLEY SPECIFIC PLAN AREA TO SPECIFIC PLAN (S-P)

The City Council of the City of Escondido, California does ordain as follows:

SECTION 1. The City Council makes the following findings:
a) The City of Escondido has undertaken the development of a specific plan for a portion of the East Valley Parkway Target Area to provide a key land use and planning policy document to guide decision-making in the coming years for an area of the City comprising of approximately 191 acres in the western portion of the East Valley area as shown in Exhibit “A” hereto. A verified application was submitted to, and processed by, the Planning Division of the Development Services Department as Planning Case No. PHG 20-0028, and seeks approval of a new Specific Plan (the “East Valley Specific Plan” or “EVSP”) and Rezone relating to all properties depicted in Exhibit “A;” and b) Said application was processed in accordance with the rules and regulations of the Escondido Municipal and Zoning Codes, and the applicable procedures and time limits specified by the Permit Streamlining Act (Government Code Section 65920 et seq.) and CEQA (Public Resources Code Section 21000 et seq.); and
c) The City Council of the City of Esco ndido is authorized by State law to adopt, and from time to time, amend the General Plan governing the physical development of the City of Escondido. The City Council may also adopt more detailed plans relating to the manner of development of various areas of the City of Escondido, like the proposed Project, which includes a Specific Plan request. State law, 54 Item10.

STAFF REPORT

August 9, 2023
File Number 0870-11

SUBJECT

ANNUAL ACTION PLAN FOR FISCAL YEAR 2023 -2024 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) FUNDING FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME INVESTMENT PARTERNSHIP (“HOME”) PROGRAMS

DEPARTMENT

Development Services Department; Housing and Neighborhood Services Division

RECOMMENDATION

Request the City Council adopt Resolution No. 2023-100, approving the CBDG and HOME Budgets for FY 2022-23, and adopt Resolution No. 2023 -101, adopting the 2023 -24 Action Plan for CBDG and HOME Budgets.

Staff Recommendation: Approval (Development Services: Andrew Firestine, Director of Development Services)

Presenters: Holly Nelson, LCSW, Housing & Neighborhood Services Manager and Rodrigo Carrasco, Management Analyst I

FISCAL ANALYSIS

The City of Escondido (“City”) receives an annual federal entitlement from HUD for community development and housing activities. HUD announced on February 27, 2023 that the City will receive allocations of $1,446,858 in CDBG and $712,111 in HOME funds in Fiscal Year (“FY”) 2023-2024. The City has received $91,079 in residual receipt payments from HOME -funded projects that will be counted as HOME program income (“HOME PI”) in FY 2023-2024. All internal and external subrecipients of such funds had to identify an alternative funding source to cover expenses between July 1, 2023 to the present while the Annual Action Plan was not approved. CDBG funds will be used to support community development priorities, funding City -sponsored and community -based organiza tions in public services, capital, and neighborhood improvement projects. HOME funds can only be used for the provision of affordable housing. HUD funds must assist the low - and moderate-income residents of Escondido and may not be used to supplant City funds. The CDBG and HOME administrative expenses and program activities will be partially covered by the annual grant allocation. The City was not awarded Emergency Solution Grant funds (“ESG”) in FY 2023 -2024, which is a funding stream dedicated to fund ing activities like outreach, emergency shelter, homelessness prevention, rapid re -housing and data management related to homelessness.
55 Item11.

PREVIOUS ACTION
On May 20, 2020, the City Council held a public hearing and approved the FY 2020-2024 Consolidated Plan (“Con Plan”) which is a five-year plan that outlines the City’s goals and funding priorities for CDBG, HOME, and ES G through June 30, 2025. The City anticipates receiving close to $13,000,000 from its annual allocation, program income, and unused funding. Extensive public outreach and consultation, needs assessments, and market analyses on local data were conducted t o determine the most critical community needs and strategic goals within the City of Escondido.

City staff released a public notice on February 16, 2023 for a 30 -day public comment period requesting feedback on the City’s CDBG, HOME and ESG priorities for FY 2023 -24. City staff received no public comments related to Annual Action Plan.

The Public Hearing was noticed for the March 22, 2023 City Council Meeting, but the item was opened and continued to April 19, 2023, and then postponed until May 24, 2023. In the interim, City staff met with City’s Ad-Hoc Subcommittee on Homelessness (“Subcommittee”) on April 10, May 1, and May 9 to provide formal presentations on the history of CDBG, funding expenditures, the City’s timeliness test, outcomes, open public s ervices and capital improvement projects, and the challenges to the CDBG program. On May 24, 2023, the City Council held a public hearing to reaffirm the City’s CDBG and HOME priorities for FY 2023 -24. A 10 -day notice was issued to the community notifyin g them of the public hearing. The Subcommittee and City Council recommended prioritizing proposals that address and respond to homelessness. As a result of this request, City staff weighted the proposals by 10 points if the interested subrecipient had a project that addressed the City’s need of homelessness. On June 5, 2023, City Staff released Request for Proposals No. 23-26 (“RFP”) for the CDBG program for FY 2023-2024. City staff sent personalized emails to 46 recipients on the CDBG mailing list, posted the RFP on BidNet and the City’s Finance Purchasing website, and sent a memo to department leadership with the application. City staff also announced the funding opportunity at the North County Community Leadership Team Meeting on June 7, 2023 which ha d over 100 people present. All interested applicants were invited to attend a pre-application meeting over Zoom to review the proposal and questions. City staff had elected to hold its first pre -application meeting, because the proposal and questions had changed drastically from the previous year to align with the City’s RFP standards. City had 12 service providers in attendance.

Questions generated from the RFP and meeting were posted on the City’s website as well as the recorded copy of the meeting. The RFP was open for 17 days and closed on June 21, 2023.

In respo nse to the RFP, the City received 23 proposals from both internal and external applicants.

Proposals were analyzed and scored by Housing & Neighborhood Services staff on a 100-point scale based on agency information, capacity, experience, project description, financial information and the City’s priority of homelessness. These recommendations were presented to the Subcommittee on June 28, 2023 56 Item11.

for feedback and funding recommendations. The Subcommittee provided direction on which proposals to submit to City Council for the Annual Action Plan for FY 2023-2024.

The City released a 30 -day public notice in the Escondido Times Advocate on July 6, 2023 and posted a copy of draft the Annual Action Plan on the Housing and Neighborhood Services Department. All applicants were notified of the draft Annual Action Plan and City staff called applicants who were not recommended for funding.

During the open public comment period, City staff held three presentations on the Annual Action Plan on July 20th to the Old Escondido Neighborhood Group; on July 27th to the Neighborhood Leadership Forum; at and Escondido Education COMPACT’s CAFÉ Meeting on July 28th.

BACKGROUND

The Con Plan is a federally-required document for communities that receive federal HUD funds. The Plan provides a comprehensive, strategic framework for a community to establish a unified vision and action plan to address the needs of low - and moderate-income individuals, families and neighborhoods. The goals of CDBG, ESG, and HOME programs included in the Con Plan are to provide decent housing, provide services to households experiencing homelessness, provide a suitable living environment, and expand economic opportunities.

Fourth Year Annual Action Plan (FY 2023-2024)
The one-year action plan, required for each year of the Con Plan period, determines the specific goals, objectives and performance benchmarks for activities for a single year and will spec ify how CDBG and HOME funds are spent. Projects must address the Con Plan priorities. In accordance with the Citizen Participation Plan, the City must conduct two public hearings to solicit and consider citizen input on the Annual Action Plan. The draft FY 2023 -2024 Action Plan is posted on the City’s website at https://escondido.org/housing-and-neighborhood-services (Attachment 1).

This City Council action will identify specific programs and activities to be undertaken with FY 2023-2024 funds and conditionally commit funding. Approval of the funding for the programs would require a budget adjustment (Attachment 2) for the CDBG and HOME programs. Final commitment is dependent on HUD’s acceptance of the Action Plan, completion of a National Environmental Policy Act (“NEPA”) environmental review, provision of appropriate insurance verification, and acceptance of City contract terms. The deadline to submit the Annual Action Plan by HUD is August 16, 2023.

CDBG Funds
The CDBG program provides low- and moderate-income persons and areas with resources to address a wide range of unique community needs. The CDBG program works to ensure decent affordable housing 57 Item11.

and neighborhoods, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. Each CDBG activity must meet one of the following national objectives for the program: benefit low - and moderate -income (“LMI”) person s, prevent or eliminate slums or blight, or address an urgent community development need. Additionally, funds must align with at least one of the City’s CDBG priorities.

FY 2023-2024 CDBG Priorities are:

1. Homeless Services: Support homeless shelter and other services.

2. Basic Needs: Provide access to food, water, shelter, and sanitation.

3. Health and Human Development : Provide access to recreation, education, and healthcare (including mental health).

4. Neighborhood Revitalization: Improve the livability of neighborhoods.

5. Economic Development: to provide economic development opportunities to low -mod income residents and business.

6. Public Safety: Improve safety for all residents.

The City will receive $1,446,858 in CDBG entitlement funds for FY 2023-2024 which is a 7% decrease from FY 2022-2023. The funding is determined by a formula calculated by HUD based on population, people in poverty, overcrowded units, population growth lag since 1960, and pre -1940 housing units from the American Community Survey (“ACS”). The City’s allocation can fluctuate year-to-year causing funding to increase or decrease in various programs. According to HUD’s rules, no more than 20% of entitlement funds ($289,372) may be expended for administrative activities and no more than 15% ($217,029) may be used for public service activities. There is no cap for funding capital projects with the CDBG entitlement funds.

As a recipient of CDBG funds, the City is also required to take steps to affirmatively further fair housing within its jur isdiction as part of the obligation it assumes when it accepts these funds. Fair housing activities prevent discrimination as defined in the Fair Housing Act (Title VIII of the Civil Rights act of 1968) and subsequent amendments. Fair housing services ar e allowable under Public Service or Administration. For the FY 2023-2024 CDBG program year, the City funds fair housing services as a public service through the Legal Aid Society of San Diego, which provides outreach, education, legal representation to LMI Escondido residents to prevent housing discrimination.

Each year, the City must develop an Action Plan that describes all the activities the City plans to carry out that year. Eligible projects considered include internal City projects and external projects from non-profit, 58 Item11.

for profit, faith -based organizations, and other. The applications received for the FY 2023 -2024 CDBG program are included in Attachment 3.

For FY 2023-2024, the City received 23 applications totaling over $3.1M dollars for $1,157,48 5 available CDBG funds. Twelve internal/external agencies applied for $217,029 dollars in public service funding.

Eleven internal/external agencies applied for capital improvement and neighborhood revitalization activities. The recommended agencies and fun ding amounts are found in the table below, but a more detailed list of proposed projects can be found in Attachment 4:

CDBG Funding Allocations for FY 2023-2024
Applicant Project Name Activity Allocation
Mama's Kitchen Medically Tailored Meal Service Public Service $7,500 Community Services Dept. Senior Cares Public Service $16,000 Project Next Future Ready Program Public Service $30,000 Housing and Neighborhood Services Neighborhood Cleanup

Capital Project $33,804
Center for Community Solutions Hidden Valley House Capital Project $35,000 Legal Aid Society of San Diego, Inc. Fair Housing Services Public Service $35,000 The Alabaster Jar Project Critical Care Therapeutic Services to Human Trafficking Survivors Program
Public Service $50,000
Code Compliance Part-time Code Compliance Officers Capital Project $107,723 Public Works Dept. Graffiti Eradication Capital Project $107,723 WeeCare, Inc. Business Operation & Optimization
Support Tools
Capital Project $112,500
Community Services Dept. Washington Park Pool Capital Project $197,237 Engineering Old Escondido Lighting Capital Project $425,000

59 Item11.

HOME Funds
The City will receive $712,111 in HOME funds for Fiscal Year 2023 -24 and $91,079 HOME PI totaling $803,190. HUD provides formula grants to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low -income people. The City may allocate 10% of a new HO ME allocation, interest, and program income derived from loan repayments for administration. A minimum of 15% of the annual allocation of HOME Program funds must be reserved for the housing development activities of Community Housing Development Organizations (“CHDOs”). A total of 5% of the HOME grant may, but is not required to, be used to provide operating funds to certified CHDOs. Federal regulations state that HOME Program funds must be committed within two years and expended within five years of allocation; recent guidance from HUD has relaxed the commitment deadline, but not the expenditure deadline. Allocation recommendations for HOME-funded activities are included as Attachment 5.

FY 2020-2024 Housing Priorities

1. Creation and preservation of affordable rental housing; and

2. Conservation and expansion of affordable homeownership opportunities.

HOME Allocations for FY 2023-2024

Priority Project Allocation
Administration Fund administrative expenses for staff, professional services, office supplies and trainings $80,319
Conservation and
Expansion of
Affordable
Homeownership
Fund two first-time homebuyer with a loan of up to $25,000 per household $50,000
HOME Requirement CHDO Set-Aside (15% of total allocation) $120,469 Preservation of
Affordable Housing
Release an RFP for to rehabilitate 15 affordable, multifamily units within the City of Escondido $552,392

60 Item11.

Public Meetings and Resident Feedback
City staff presented at three community meetings: the Old Escondido Neighborhood Meeting on July 20, 2023 Neighborhood Leadership Forum on July 27, 2023, and the Escondido Education COMPACT’s CAFE Meeting.

On July 28, 2023. Between the three meetings, the City had over 45 people in attendance. The Annual Action Plan was presented with the proposed funding recommendations and staff solicited feedback from the groups. Community members seem to agree with the proposed plan. Two people expressed support for the child care project and one person stated she was contemplating op ening her own in-home child care program and would welcome the tools and business support. The Old Escondido Neighborhood group expressed appreciation for the phase two of the lighting project on Juniper, but stated the number streets also need lighting. Residents said the neighbors would prefer walking on the side streets to go to downtown versus the busy street on Juniper. One resident expressed a comment in support of developing a teen drop -in center, another person mentioned adding more public restro oms, another stated they would like to see a traffic light added near Washington & Fig where Mission Middle School students unsafely cross the streets, address food insecurity and access for students during the summer break, and the last person asked to ex pand the walking paths near Escondido Creek. Most of the group was supportive of creating more affordable housing and helping homeowners with first -time homebuyer loans.

Conclusion
Staff recommends the City Council approve the HUD Annual Action Plan for F Y 2023-2024 and authorize staff to submit the same to HUD. The deadline for the City to submit the FY 2023-2024 Annual Action Plan to HUD is August 16, 2023. It is critical the City Council approve the AAP with the recommended allocations from the Ad Hoc Homelessness Subcommittee, as the City is at risk of losing the $1,446,858 allocation of federal funds. City staff anticipates returning to the City Council in fall 2023 to review and amend previous programs.

RESOLUTIONS
a. Resolution No. 2023-100
b. Resolution No. 2023-101

ATTACHMENTS
a. Attachment 1 – FY 2023-2024 Annual Action Plan
b. Attachment 2 – Budget Adjustment
c. Attachment 3 – CDBG Proposals
d. Attachment 4 – FY 2023-2024 Proposed CDBG Allocations e. Attachment 5 – FY 2023-2024 Proposed HOME Allocations

61 Item11.

RESOLUTION NO. 2023-100

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ADOPTING THE CBDG AND
HOME BUDGETS FOR FISCAL YEAR 2022-23

WHEREAS, the City of Escondido (“City”) is a recipient of Community Development Block Grant (“CDBG”) and HOME Investment Partnerships Program (“HOME”) funds from the United States Department of Housing and Urban Development (“HUD”); and WHEREAS, the City will also receive HOME Program Income (“HOME PI”) from residual payments in Fiscal Year (“FY”) 2022-2023; and
WHEREAS, the CDBG and HOME budgets reflect the work program for FY 2023 -2024 based on the City’s corresponding Action Plan which identifies the goals and priorities for the funds as established in the 2020-2024 Consolidated Plan; and
WHEREAS, a maximum of 20% of CDBG funds received may be used for administration, a maximum of 15% of CDBG funds may be used for public service activities, and the remaining funds may be used for capital improvements and neighborhood revitalization; and WHEREAS, a total of 15% of HOME funds received by the City must be used for the provision of affordable housing by eligible Community Ho using Development Organizations (“CHDOs”), 10% of the HOME funds received by the City may be used for administration, and the remaining HOME funds and HOME PI received by the City may be used for housing development; and

62 Item11.

WHEREAS, the City Council desires at this time, and deems it to be in the best public interest, to adopt both CDBG and HOME budgets for FY 2022-2023; and
WHEREAS, CDBG and HOME funds cannot be committed to projects until certain conditions are met, including HUD’s acceptance of the Actio n Plan, completion of a National Environmental Policy Act (“NEPA”) environmental review for each project, receipt of environmental clearance from HUD, provision of appropriate insurance verification by subrecipients, and acceptance of City contract terms.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California , as follows:

1. That the above recitations are true.

2. That the City Council authorizes and adopts the CDBG and HOME budgets and administration of programs for the period of September 1, 2023, through June 30, 2024.

63 Item11.

RESOLUTION NO. 2023-101

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, ADOPTING THE 2023 -24

ACTION PLAN FOR CBDG AND HOME BUDGETS AND

APPROVING SUBMITTAL OF THE SAME TO THE

DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California , as follows:

1. That the above recitations are true.

2. That the City Council approves the adoption of the 2023-24 One-Year Action Plan for CDBG and HOME funds.

3. The City Council approves the submittal of the 2023-24 One-Year Action Plan to HUD.

64 Item11.

Attachment “1”

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
As a recipient of federal funds from the U.S. Department of Housing and Urban Development (“HUD”), the City of Escondido is required to prepare and submit a Consolidated Plan every five years. The City’s current Consolidated Plan was approved in 2020. It covers the five-year period from 2020 through 2024 and applies to the following three federal grant programs:

Community Development Block Grant (“CDBG”)
The primary objective of the CDBG program is the development of urban communities through the provision of improved living environments, expansion of economic opportunity, and providing suitable housing. Funds are intended to serve low- and moderate-income residents and areas.

HOME Investment Partnerships Program (“HOME”)
The HOME program increases the availability, quality, and access to affordable and decent housing for low- and moderate-income residents.
65 Item11.

Attachment “1”

Emergency Solutions Grant (“ESG”)
The purpose of the ESG program is to help individuals and families who are at-risk or experiencing homelessness through prevention, street outreach, emergency and rapid rehousing resources.

The Consolidated Plan is a document developed through a collaborative process where Escondido stakeholders identify community improvements, needs and priorities to address using federal grant funds and other available resources. The City created a Citizen Participation Plan which outlines how the City solicits and incorporates the views of community members, organizations and other interested parties into the decision-making process. Through the use of surveys, community meetings and public hearings, the residents of Escondido have a multitude of opportunities to shape the priorities and strategies of the Consolidated Plan. The Fiscal Year (FY) 2023-2024 AAP is for the fourth year of the 2020 – 2024 Consolidated Plan.

Each year, the City of Escondido is required to prepare and develop an Annual Action Plan (“AAP”) to affirm goals and priorities. The AAP for FY 2023-24 includes activities to address the City’s priority needs and objectives as outlined in the 2020-2024 Five Year Consolidated Plan.

These activities will be undertaken with federal FY 2023-24 CDBG and HOME program funds.

On February 27, 2023, HUD announced the City of Escondido would receive $1,446,858 in CDBG funds, $712,111 in HOME funds, and $0 in ESG funds for FY 2023-24. Each program has its own unique guidelines and requirements.

2. Summarize the objectives and outcomes identified in the Plan The City has extensive housing and community development needs and CDBG, HOME and ESG funds are not sufficient to address all the needs of the City. The City will use CDBG, HOME and ESG funds, in conjunction with other funding as it becomes available to meet the objectives of all programs. The priority needs and associated goals identified in the Consolidated Plan are shown below:

CDBG Priority: Homeless Services
Goal: Supporting homeless shelter and other services
CDBG Priority: Neighborhood revitalization
Goal: Improve the livability of neighborhoods
CDBG Priority: Basic Needs
Goal: Provide access to food, water, shelter and sanitation 66 Item11.

Attachment “1”

CDBG Priority: Health and Human Development
Goal: Provide access to recreation, education and healthcare (including mental health) CDBG Priority: Economic Development
Goal: Provide economic development opportunities to low-mod income residents and businesses
CDBG Priority: Public Safety
Goal: Increase public safety through the acquisition of two fire engines HOME Priority: Creation and preservation of affordable rental housing HOME Priority: Conservation and expansion of affordable homeownership opportunities ESG Priority: Homelessness Prevention
Goal: To keep households at imminent risk of homelessness from becoming homeless ESG Priority: Emergency Shelters
Goal: To temporarily house homeless residents
ESG Priority: Essential services to shelter residents
Goal: To provide basic needs and case management to homeless residents living in an emergency shelter
ESG Priority: Engagement of homeless individuals and families Goal: To conduct outreach to unsheltered people
ESG priority: Rapid Rehousing
Goal: To provide permanent housing to homeless households

3. Evaluation of past performance
During the 2022-2023 program year, the City utilized its CDBG and HOME funds for a variety of different housing and community development activities. Seventeen activities were funded through CDBG and two programs through HOME.
67 Item11.

Attachment “1”

The following includes some of the accomplishments of the prior year.

Community Development Block Grant
During the prior year, the City completed Phase I of the Creek Trail Fencing Project, paid for the deposit two fire engines for Fire Stations #1 and #7 (replacing two engines that are 20+ years old), remodeled outdoor patio at the Park Avenue Community Center to expand dining and programming, purchased $100,000 in LED lights in CDBG eligible census tracts, installed several water bottle refillable stations in CDBG-eligible parks and managed public service activities that provided emergency shelter to over 300 unduplicated households experiencing homelessness and/or domestic violence, served meals to nearly 100 medically-fragile adults with chronic health conditions and served meals to seniors through Meals on Wheels and at the local senior center. CDBG funds allowed for the increase in mental health counseling in Escondido High Schools to help students impacted by the pandemic. .

Housing:

The City processed one first -time homebuyer application for $25,000 in April 2023. .

The City used $1,000,000 in HOME Funds to assist Habitat for Humanity in the construction of 10 new affordable housing for-sale units for low- and moderate-income households. The property is located at 245 E. El Norte Parkway, Escondido, CA and construction began in May 2022. These units are expected to be finalized in December 2023 and sold by January 2024.

Public Facility Improvements: During this current year, many capital improvement projects have progressed using CDBG funds. Community outreach was performed to solicit feedback regarding the Escondido Creek Trail Fencing along both sides of the Trail between N. Ash and N. Rose. A Request for Proposal (RFP) has been developed and is to be released and construction is expected to begin during the 2022-2023 program year. An RFP has also been prepared to complete street light improvements in the Old Escondido Neighborhood that is also anticipated to begin construction in the upcoming year.

A public improvement was also completed this year at Urban Corps of San Diego County’s facility at 2200 Micro Place. The CDBG funds used for this improvement will see 50 participants, called Corpsmembers, benefit as low-income disconnected and disadvantaged young adults by giving them a second chance for education and provides needed supports to gain employment.

This program that promotes education and employment of local young people reaches their children, families, and their neighborhoods and broader communities.

New safety lights were installed throughout the Jesmond Dene Park parking lot with CDBG funds to promote safe and increased utilization of the park. 68 Item11.

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Homelessness: The City funded homeless services for 250 unhoused people.

4. Summary of Citizen Participation Process and consultation process The City of Escondido follows the Citizen Participation Plan included as part of the 2020-2024 Consolidated Plan. As part of that Plan, City staff is required to go to the City Council twice for public hearings. On May 24, 2023, the City went to review and affirm priorities in CDBG and HOME funding in FY 2023-24. The City Council voted to prioritize homelessness in this year’s grant cycle.

The City published a notification in the Escondido Times-Advocate on July 6, 2023 informing the public of the upcoming City’s Public Hearing on August 9, 2023 and eliciting feedback on the Annual Action Plan from July 6 – August 9, 2023.

The draft Annual Action Plan was posted on the City’s website, and paper copies were made available at Escondido City Hall, Housing & Neighborhood Services Counter at 201 N.

Broadway, Escondido, CA 92025.

5. Summary of public comments
There were seven comments for the public hearing at the May 24, 2023 City Council meeting. Of the seven comments, five were requesting the City fund child care. The City received a comment requesting the City fund homeless services. Additionally, the Legal Aid Society of San Diego requested the City fund their program to provide legal representation to low/moderate income Escondido residents under their fair housing program.

6. Summary of comments or views not accepted and the reasons for not accepting them
None

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PR-05 Lead & Responsible Agencies – 91.200(b)

Agency Role Name Department/Agency
Lead Agency - CDBG Holly Nelson & Rodrigo
Carrasco
Housing & Neighborhood
Services/City of Escondido
Lead Agency – HOME Holly Nelson & Eric Bunge Housing & Neighborhood Services/City of Escondido
Lead Agency – ESG Holly Nelson Housing & Neighborhood
Services/City of Escondido
Table 1 – Responsible Agencies
The City of Escondido’s Housing and Neighborhood Services Division is responsible for administering the CDBG and HOME programs. Division staff is also responsible for preparing the Annual Action Plan, Consolidated Plan, data and financial reports. Many programs and services operate for one year, but some capital improvement projects can take multiple years to complete due to complexity, cost and staff time.

Consolidated Plan Public Contact Information
For questions regarding the City of Escondido’s CDBG, HOME or ESG programs please contact Holly Nelson, Housing and Neighborhood Services Program Manager, at (760) 839-4518 or [email protected]. Program staff is located at Escondido City Hall at 201 North Broadway, Escondido, CA 92025.
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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
As part of the Consolidated Plan and Annual Action Plan development process, the City encourages and promotes citizen participation. The City of Escondido staff presented at three community meetings from April through June 2023 to discuss the CBDG and HOME programs and encouraged community feedback and participation in the Plan development. All three meetings were in held in-person. Staff was able to provide outreach to nearly 140 individuals who were comprised of service providers, educators, residents in Escondido.

The City of Escondido is committed to fostering relationships with local community groups to address homelessness, senior and youth services, mental and physical health, and basic needs. The City facilitates a quarterly meeting with all services providers in the Escondido that has representation from local community clinics, and the local hospital. The City maintains an updated agency list of all interested groups in development of this Action Plan.

Community Meetings
The Regional Task Force on Homelessness (RTFH) is the lead agency and administrative entity for the Continuum of Care for the San Diego County. RTFH operates the Homeless Management Information System (HMIS) that captures data on individuals and households who are at-risk or experiencing homelessness in San Diego County as well as provides system-level regarding information on homeless services utilization, performance, and outcomes. City of Escondido staff regularly consults and coordinates with RTFH for data, best practices, local, state and federal funding opportunities, technical assistance, and system improvement.

The City of Escondido did not receive any ESG funding in FY 2022-23; however, the City staff facilitates a monthly meeting with all eight North County cities, RTFH, and the County of San Diego to discuss homelessness, collaborate on current needs and priorities for assisting the County’s homeless population, best practice standards related to homeless prevention, outreach, emergency shelter, rapid rehousing, HMIS, permanent housing. The City is an active member of the RTFH CoC Membership in 2022-23 and participates in community and board meetings.

Housing & Neighborhood Services partners closely with Legal Aid Society of San Diego on fair housing concerns and issues. They facilitated two community workshops in April in English and Spanish on the topic of fair housing. Legal Aid also provided a one-hour training to staff on fair housing and how to better serve local residents who call and ask for help in 2023.

The City attends quarterly meetings with the San Diego Regional Alliance for Fair Housing (“SDRAFFH”) and collaborates with their peers in neighboring jurisdictions on housing, homelessness and other CDBG-related projects.

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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization COUNTY OF SAN DIEGO
Agency/Group/Organization Type Housing
Agency - Emergency Management
Other government - County
Fire Department
What section of the Plan was addressed by
Consultation?
Hazard Mitigation
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
The County of San Diego Emergency Services Department, in conjunction with the City of Escondido Fire Department, developed a countywide disaster plan. The plan includes the top potential hazards in each area of the county. The City consults this plan when determining how to allocate capital funds, including ensuring that impacts to lower income households are lessened.
2 Agency/Group/Organization Escondido School District
Agency/Group/Organization Type Services - Broadband Internet Service Providers Services - Narrowing the Digital Divide
Business and Civic Leaders
What section of the Plan was addressed by
Consultation?
Broadband Services
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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or
areas for improved coordination?
At the beginning of the pandemic, government, grant, and private funding was made available to the school districts in Escondido to ensure that broadband was widely available to Escondido students participating in remote learning. Additional participation by the City was not needed as broadband provision was a focus of efforts.

Continued focus, possibly including the City, will be on increasing broadband availability in the city in the upcoming years, based on information that was gained during the pandemic.

As part of the development process for the Annual Action Plan and Consolidated Plan, the City encourages maximum citizen and stakeholder participation from all areas and organizations. The City used a variety of outreach methods and no agency or groups were excluded during the process.

Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care RTFH The City is funding temporary emergency shelter and releasing an RFP to build permanent housing at 30% AMI using CDBG and HOME dollars.

Table 3 – Other local / regional / federal planning efforts

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Annual Action Plan

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AP-12 Participation – 91.105, 91.200(c)

Citizen Participation Outreach
Sort Ord
er
Mode of Outrea
ch
Target of Outrea
ch
Summary of
response/attenda
nce
Summary of
comments receiv
ed
Summary of comme
nts not accepted
and reasons
URL (If
applicabl
e)
1 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broad
community
A notice was
published in the
Escondido Times-
Advocate
newspaper
announcing the
March 22, 2023
Public Hearing.

None received None
2 Public Meeting
Non-
targeted/broad
community
The City Council
voted to continue
the Public Hearing
until April 19, 2023.

None received None
3 Newspaper Ad
Persons with
disabilities

Non-
targeted/broad
community
A newspaper notice
was posted on
March 19, 2023 in
the Union Tribune
to advertise the
Public Hearing on
April 19, 2023.

No comments
were received. Not applicable.
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Annual Action Plan

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Sort Ord
er
Mode of Outrea
ch
Target of Outrea
ch
Summary of
response/attenda
nce
Summary of
comments receiv
ed
Summary of comme
nts not accepted
and reasons
URL (If
applicabl
e)
4 Public Hearing
Persons with
disabilities

Non-
targeted/broad
community
A Public Hearing on
April 19, 2023to
review and affirm
priorities for CDBG
and HOME was
continued until May
24, 2023.

No comments
were received. Not applicable.
5 Newspaper Ad
Persons with
disabilities

Non-
targeted/broad
community
A notice was
published in the
Union Tribune
newspaper
announcing the
May 24, 2023
Public Hearing.

Not applicable
6 Public Hearing
Persons with
disabilities

Non-
targeted/broad
community
A Public Hearing on
May 24, 2023
review and affirm
priorities for CDBG
and HOME was
continued until May
24, 2023.

Funding for
childcare, basic
needs services,
mental health
services, and
homelessness
were requested.

Not applicable.

Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City of Escondido is a HOME participating jurisdiction and a CDBG entitlement jurisdiction. The funding is determined by a formula calculated by HUD based on population, people in poverty, overcrowded units, population growth lag since 1960, and pre-1940 housing units from the American Community Survey (“ACS”). The City’s allocation can fluctua te year-to-year causing funding to increase or decrease in various programs.

On February 27, 2023, HUD announced the City will receive $1,446,858 in CDBG funds, $712,111 in HOME funds, and $0 in ESG funds for FY 2023-24. The City has received to-date $91,079 in HOME Program Income from loan repayments form various HOME projects. The total amount of anticipated federal funds for FY 2023-24 is $2,250,048.

The City of Escondido was not awarded ESG funding in FY 2022-23 or FY 2023-24 and it is uncertain if the City will be receiving funding in future years. The City does not receive funding under the Housing Opportunities for Persons with AIDS (“HOPWA”) program. Program income received from the repayment of CDBG-owned rental property will be reassigned for permitted activities.

Any additional Program Income funds also will be reprogrammed into allowable programs or projects, as identified during the Action Plan process.

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Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services $1,446,858 $0 $1,548,067 $2,994,925 $2,893,716 .

HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner rehab
Multifamily rental
new construction
Multifamily rental
rehab
New construction
for ownership
TBRA $712,111 $91,079 $706,529 $1,509,719 $712,111
Funding based on
anticipated HUD
allocation.
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Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
ESG public -
federal
Conversion and
rehab for
transitional housing
Financial
Assistance
Overnight shelter
Rapid re-housing
(rental assistance)
Rental Assistance
Services
Transitional
housing 0 0 0 0 0
The City was not
awarded ESG funds
in FY 2022-23 or FY
2023-24.

Table 5 - Expected Resources – Priority Table

The City will be evaluating its publicly-owned land and property for future affordable housing development opportunities.

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Annual Action Plan

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Create and
preserve
affordable rental
housing
2020 2024 Affordable
Housing
City of
Escondido
Creation/preservation of
affordable rental
housing
Homelessness
prevention
HOME:
$585,876
Rental units constructed:

No units were constructed
2 Affordable
ownership
opportunities
2020 2024 Affordable
Housing
City of
Escondido
Conservation/expansion
afford homeowner
opport
HOME:
$50,000
Direct Financial
Assistance to
Homebuyers: 1
Households Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
3 Support
homeless shelter
and other
services
2020 2024 Homeless City of
Escondido
Homelessness services
Emergency Shelter
Essential services to
shelter residents
Engagement of
homeless individuals
and families
CDBG:
$283,956
Homeless Person
Overnight Shelter: 320
Persons Assisted
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit: 0
people served. Goal not
yet accomplished.

4 Prov access to
food, water,
shelter and
sanitation
2020 2024 Homeless City of
Escondido
Basic needs CDBG:
$157,610
Public Facility or
Infrastructure Activities for
Low/Moderate Income
Housing Benefit: 2500
Households Assisted
Public service activities for
Low/Moderate Income
Housing Benefit: 963
Households Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Access to
recreation,
education and
healthcare
(includingmental
health)
2020 2024 Non-Housing
Community
Development
City of
Escondido
Health and human
development
CDBG:
$446,543
Public Facility or
Infrastructure Activities for
Low/Moderate Income
Housing Benefit: 700
Households Assisted
Public service activities for
Low/Moderate Income
Housing Benefit: 240
Households Assisted
6 Improve the
livability of
neighborhoods
2020 2024 Non-Housing
Community
Development
City of
Escondido
Neighborhood
Revitalization
CDBG:
$1,089,595
Public service activities for
Low/Moderate Income
Housing Benefit: 150
Households Assisted
Housing Code
Enforcement/Foreclosed
Property Care: 100
Household Housing Unit
Other: 100 Other

7 Increase public
safety
2022 2024 Non-Housing
Community
Development
Public Safety CDBG:
$526,317
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
81440 Persons Assisted
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Annual Action Plan

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
8 Temporarily
house homeless
residents
2020 2024 Homeless City of
Escondido
Emergency Shelter ESG: $0 No goals were
accomplished under this
activity, because the City
of Escondido was not
awarded funding in 2022-

23. 9 Keep HH at risk
from becoming
homeless
2020 2024 Non-
Homeless
Special
Needs
City of
Escondido
Homelessness
prevention
ESG: $0 No goals were
accomplished under this
activity, because the City
of Escondido was not
awarded funding in 2022-

23. 10 Basic needs and
case mgt to
residents in
shelter
2020 2024 Homeless City of
Escondido
Essential services to
shelter residents
ESG: $0 No goals were
accomplished under this
activity, because the City
of Escondido was not
awarded funding in 2022-

23. 11 Engage/assess
homeless
indiv/families on
street
2020 2024 Homeless City of
Escondido
Engagement of
homeless individuals
and families
ESG: $0 No goals were
accomplished under this
activity, because the City
of Escondido was not
awarded funding in 2022-

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Annual Action Plan

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
12 Provide perm
hsg to homeless
households
2020 2024 Homeless City of
Escondido
Basic needs ESG: $0 No goals were
accomplished under this
activity, because the City
of Escondido was not
awarded funding in 2022-

23. Table 6 – Goals Summary

Goal Descriptions

1 Goal Name Create and preserve affordable rental housing Goal
Description
Assist in the production of new, affordable rental housing through construction and acquisition/rehabilitation of existing rental units. Units would be extremely-low households. 2 Goal Name Affordable ownership opportunities
Goal
Description
The City will provide direct assistance to first-time, low-income homebuyers for down payment or closing cost assistance. The City also will assist in the production of affordable homeownership housing for lower income homebuyers.
3 Goal Name Support homeless shelter and other services Goal
Description
Provide shelter beds for individuals and households experiencing homelessness. 83 Item11.

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4 Goal Name Prov access to food, water, shelter and sanitation Goal
Description
Support basic needs, such as food, water, shelter, sanitation for homeless and low- and moderate-income persons.
5 Goal Name Access to recreation, education, and healthcare (including mental health) Goal
Description
Support educational, recreational and mental health for all members of the community, including youth, families and seniors.
6 Goal Name Improve the livability of neighborhoods
Goal
Description
Work with neighborhood leaders to build community, reduce slum and blight and beautify low- and moderate- income neighborhoods.
7 Goal Name Keep HH at risk from becoming homeless
Goal
Description
This need is being addressed by the City's ESG-CV dollars. 8 Goal Name Temporarily house homeless residents
Goal
Description
This need is being addressed using the City's ESG-CV dollars. 9 Goal Name Basic needs and case mgt to residents in shelter Goal
Description
This need is being addressed using the City's ESG-CV dollars. 10 Goal Name Engage/assess homeless individuals/families on street Goal
Description
The City has allocated an additional $213,956 for the purchase/conversion of a homeless navigation/day center. This program will engage, assess and connect individuals and households living on the streets with temporary and permanent housing resources. The City will continue to engage and serve this population through the use of its ESG-CV dollars.
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11 Goal Name Provide perm hsg to homeless households
Goal
Description
This need is being addressed by the City's ESG-CV dollars. 12 Goal Name Increase public safety
Goal
Description
Provide the 25% deposit for two Monarch Type I Fire Engines through Sutphen Inc.

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Annual Action Plan

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Projects
AP-35 Projects – 91.220(d)
The City of Escondido Housing and Neighborhood Services Division will serve as the lead agency in the administration of all CDBG and HOME projects proposed in this Plan. The City will contract with local nonprofit agencies and organizations to administer fair housing activities and some public services, in addition to administering most programs and projects directly. Any contract agencies (subrecipients) will be responsible for program implementation and all performance will be monitored by the City of Escondido.

Projects
# Project Name
1 CDBG Admin
2 Public Services
3 Fair Housing
4 Capital Improvements
5 Neighborhood Revitalization
6 HOME Administration
7 Housing Development
Table 7 - Project Information

The City of Escondido is preparing to enter its fourth year of its five-year Consolidated Plan.

Goals and objectives were identified that have not been accomplished in the Plan. City staff sought direction on funding priorities for FY 2023-24 from the Homelessness Subcommittee and the City Council who voted to prioritize homelessness in the upcoming CDBG Program Year. As a result, additional points were given to interested subrecipients who submitted applications targeting this priority need. The City continues to re-evaluate its First Time Homebuyer Program. Due to rise in interest rates and high inflation, calls and interest for the program has decreased over the past year. City staff did process one application in April 2023; however, they are still exploring creative solutions like buying down interest rates and partnering with nonprofit agencies to facilitate homeownership. More research needs to be down in this space to make this program more impactful for low- and moderate-households.

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AP-38 Project Summary
Project Summary Information
1 Project Name CDBG Admin
Target Area Neighborhood
Groups CDBG
Eligible Areas
City of Escondido
Goals Supported Support homeless shelter and other services Prov access to food, water, shelter and
sanitation Access to rec, ed and healthcare
(including mental health) Improve the livability
of neighborhoods
Keep HH at risk from becoming
homeless Temporarily house
homeless residents
Basic needs and case mgt to residents in shelter
Engage/assess homeless individual/families
on street Provide permanent housing to
homeless households
Needs Addressed Creation/preservation of affordable rental housing Homelessness services
Basic needs
Health and human
development Neighborhood
Revitalization Homelessness
Prevention Emergency Shelter
Essential services to shelter residents
Engagement of homeless individuals and
families Rapid rehousing for homeless
individuals/families
Funding CDBG: $289,371
Description General administration of the CDBG program. Includes staff costs for compliance, reporting, financial management and program monitoring.

Target Date 6/30/2024
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Estimate the
number and type
of families that will
benefit from the
proposed
activities
N/A
Location
Description
Citywide
Planned Activities Staff time, administration, compliance, reporting, financial management and monitoring.
2 Project Name Public Services
Target Area City of Escondido
Goals Supported Support homeless shelter and other services Provide access to food, water, shelter and sanitation Access to recreation, education, and healthcare (including mental health).

Temporarily house homeless residents
Basic needs and case mgt to residents in shelter
Needs Addressed Homelessness services, Basic Needs,
Health and human development

Funding CDBG: $138,500
Description Public services benefitting low-mod community members, provided by the City or local non-profit agencies and organizations.

Target Date 6/30/2024
Estimate the
number and type of
families that will
benefit from the
proposed
activities
Approximately 430 low- and moderate-income, disabled, housing- insecure, and various other vulnerable Escondido residents will benefit from the CDBG-funded public service activities.

Location
Description Citywide
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Planned Activities  Mama’s Kitchen Home Delivered Meal Service ($7,500) Provides medically tailored meals to low- and moderate- income Escondido residents facing critical illness such as cancer, type 2 diabetes, congestive heart failure, and
chronic kidney disease.
 Senior Cares ($16,000) Improves the quality of life for income seniors living in Escondido by improving
accessibility to referral services, decreasing isolation, and assisting them to age in place with confidence and vitality.  Project Next (formerly San Marcos Promise) ($30,000)
Provides personal development services to LMI high
students to assist with preparing the student for college and adult life.
 The Legal Aid Society of San Diego ($35,000) enforces fair housing rights and helps Escondido residents to maintain housing stability. The program provides services to
Escondido residents including (1) education and outreach regarding rights and responsibilities under the Fair Housing Act and related State laws; (2) legal education, referral, advice/ and/or representation; (3) testing to detect fair housing discrimination from housing providers.
 The Alabaster Jar Project ($50,000) provides housing and counseling to victims of human trafficking to aid in recovery and prevent homelessness for this vulnerable population.

3 Project Name Capital Improvements
Target Area Old Escondido Neighborhood & Citywide
Goals Supported Low- and Moderate-Income Residents and Areas Needs Addressed Homelessness and Homelessness Prevention, Health and Human Development, Economic Development
Funding CDBG: $344,737
Description Public facilities improvements.

Target Date 6/30/2024
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Estimate the
number and type
of families that will
benefit from the
proposed
activities
All families in the Old Escondido Community, which is an LMI community.

Location
Description
Citywide and CDBG-eligible communities
Planned Activities  The Center for Community Solutions ($35,000) operates Hidden Valley House, a domestic violence shelter, which was funded by Escondido using CDBG funds in FY 2022-
2023. The proposal requests capital funding for the lease and maintenance of the Hidden Valley House domestic
violence shelter in Escondido, which provides provide 45 households (120 adults and children) with a combined
3,000 nights of shelter and services. The project will
provide capital funds for utility expenses, computers, and other items.
 WeeCare ($112,500) would help expand economic
opportunities for 19 in-home, family child care providers in Escondido by training them to how to use essential tools to make their business operations more efficient. The
program will increase child care providers’ income, expand the provider’s capacity to serve more children and create six new jobs.
 Washington Park Pool ($197,237) is a CDBG-funded
project to restore the Washington Park Pool, replacing
antiquated infrastructure at a popular recreation facility in an Escondido LMI community. The work is scheduled to
begin in January 2024 and estimated to be completed in
June 2024. The upgrades to the facility at Washington
Park will enable Escondido residents to use the
Washington Park Pool during construction for the
upgrades to the James A. Stone Pool at Grape Day Park.

The project meets the local priority of health and human development and the HUD national objective of benefitting LMI persons/households on an area benefit basis.

4 Project Name Neighborhood Revitalization
Target Area City of Escondido
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Annual Action Plan

27 OMB Control No: 2506-0117 (exp. 09/30/2021)
Goals Supported Improve the livability of neighborhoods Needs Addressed Neighborhood Revitalization
Funding CDBG: $674,250
Description Improve the livability of neighborhoods through education, outreach, and the beautification/enhancement of neighborhoods.

Target Date 6/30/2024
Estimate the
number and type
of families that will
benefit from the
proposed
activities
Neighborhood revitalization activities focused in CDBG-eligible areas of the city will provide improved livability of residents in Neighborhood Groups and overall city beautification.

Location
Description
CDBG-eligible communities
Planned Activities  Neighborhood clean ups ($33,804) in LMI communities within Escondido
 Code compliance ($107,723) to prevent slum/blight in LMI communities
 Graffiti Eradications ($107,723) to prevent slum/blight in LMI communities
 Pedestrian-scaled Lighting Phase II ($425,000) in Old Escondido Neighborhood (LMI) is a CDBG-funded capital
project will install LED street and acorn pedestrian-scaled lighting on Juniper Street in the Historic District of
Escondido between Second Avenue and Ninth Avenue.

This is the second phase of the project. The first phase of the project was allocated $595,370, and included the
design work for both phases of the project

5 Project Name HOME Administration
Target Area City of Escondido
Goals Supported Create and preserve affordable rental
housing Affordable ownership
opportunities
Needs Addressed Creation/preservation of affordable rental housing Conservation/expansion afford
homeowner opportunities
91 Item11.

Annual Action Plan

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Funding HOME: $80,319
Description HOME administration costs.

Target Date 6/30/2023
Estimate the
number and type
of families that will
benefit from the
proposed
activities
N/A
Location
Description
Citywide
Planned Activities Administrative support of HOME program funds. 6 Project Name CHDO
Target Area City of Escondido
Goals Supported Affordable ownership opportunities
Needs Addressed Conservation/expansion afford homeowner opportunities Funding HOME: $120,479
Description Build affordable housing
Target Date 6/30/2023
Estimate the
number and type
of families that will
benefit from the
proposed
activities
A CHDO is a private nonprofit, community-based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience. At least 15 percent of HOME Investment Partnerships Program (HOME) funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Develo pment Organization (“CHDO”).

CHDO must act as the owner, developer, or sponsor of a project that is an eligible set -aside activity. These eligible set -aside activities include: the acquisition and/or rehabilitation of rental housing; new construction of r ental housing; acquisition and/or rehabilitation of homebuyer properties; new construction of homebuyer properties; and direct financial assistance to purchasers of HOME-assisted.

Location
Description
Citywide
92 Item11.

Annual Action Plan

29 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities Build affordable housing

7 Project Name Residential Rehabilitation
Target Area City of Escondido
Goals Supported Preservation of Affordable Rental Housing Needs Addressed Conservation/
Funding HOME: $552,392
Description Rehabilitate at least 15 affordable multifamily units Target Date 6/30/2023
Estimate the
number and type
of families that will
benefit from the
proposed
activities
15 LMI households
Location
Description
Citywide
Planned Activities Release an RFP in the next 12 months

8 Project Name First Time Homebuyer Program
Target Area City of Escondido
Goals Supported Affordable ownership opportunities
Needs Addressed Conservation/expansion afford homeowner opportunities Funding HOME: $50,000
Description Offer two $25,000 loans to qualified low and moderate-income Escondido residents who are purchasing a home.

Target Date 6/30/2023
93 Item11.

Annual Action Plan

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Estimate the
number and type
of families that will
benefit from the
proposed
activities
Two households
Location
Description
Citywide
Planned Activities Help provide loans to LMI residents

94 Item11.

Annual Action Plan

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low- income and minority concentration) where assistance will be directed HOME: The City of Escondido does not distribute HOME allocations for housing programs and projects geographically. Available allocations are spent citywide. There are areas of focus, including areas in the older, central core of the City, although no specific target areas have been established.

CDBG: The City of Escondido currently has 18 priority Neighborhood Groups, 17 of which are located in low-to-moderate income census tracts. They are generally older areas and are either in or around the central core of the City.

Geographic Distribution
Target Area Percentage of Funds
Neighborhood Groups 2
CDBG Eligible Areas 44
City of Escondido 54
Table 8 - Geographic Distribution
CDBG funds are prioritized by funding public services that are limited to low- and moderate- income individuals and families and capital improvement projects. Additional capital improvement and neighborhood revitalization efforts are funded with CDBG dollars are prioritized in low- and moderate-income areas where infrastructure tends to need repair.

95 Item11.

Annual Action Plan

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
In addition to federal funding, the City will continue to seek additional funding sources in order to support as many Escondido households as possible.

One Year Goals for the Number of Households to be
Supported
Homeless 320
Non-Homeless 500
Special-Needs 0
Total 820
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported
Through
Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 15
Homeownership 2
Acquisition of Existing Units 0
Total 17
Table 10 - One Year Goals for Affordable Housing by Support Type The City of Escondido staff was awarded a $736,066 grant in 2023 from the County of San Diego to provide capital funds to open a low-barrier emergency shelter with a local nonprofit.

The program will serve 10-16 families at one time with wraparound services, family therapy, and transportation with emphasis on income and housing placement. The goal is to serve 50 families annually with 33 families exiting into permanent housing and 28 families within increased household income.

The City of Escondido is in the final stages of development of Valley Senior Village which is a 50-unit affordable housing complex ranging from 30% to 60% Area Median Income for seniors.

The project will be complete in July 2023 and leased in the fall 2023. The program will have 25 units of permanent supportive housing individuals who are experiencing homelessness. The City allocated $4 million dollars from Successor Housing Agency funds and helped the developer apply for low-income tax credits and grants using various downtown specific plans.

Housing and Neighborhood Services staff is working the Planning Division on density bonus requirements and affordable housing agreements.

96 Item11.

Annual Action Plan

33 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
There are no public housing units located in the City of Escondido, and the City is not a considered a Public Housing Authority. The County of San Diego is the Housing Authority that administers the rental assistance program, Housing Choice Voucher Program which is also commonly referred to as Section 8, for Escondido residents.

The City of Escondido has 3,850 people on the County’s waiting list for the Housing Choice Voucher Program which is a 21% increase from 2022. Close to half of applicants are families. 20% are single, 20% report having a disabling condition and 10% are elderly. The County currently serves 875 households in the city with a voucher in 2023 which is a 11% decrease from 981 households More research needs to be conducted to explain why the decrease in vouchers. When looking at the program recipients’ demographic information, 679 households are considered disabled/elderly, 153 households are considered a small family (less than four people) and 43 households are a large family (which is 5 people+). Eighty-five percent of all voucher holders are extremely low-income (0-30% AMI).

The City of Escondido’s public housing needs are addressed by the Housing Authority. The City supports the County in their efforts to address the needs of low-income households in Escondido. City staff educates community members of the program and helps them apply for benefits by directing them to the County’s webpage. Two Housing & Neighborhood Staff attended a Housing Quality Standards (HCV) training and have become certified. Having this knowledge of the program and housing requirements will better support the residents of Escondido.

Although the City of Escondido is not a Public Housing Authority, the County represents residents of Escondido. The County has established a public housing resident advisory board for county public housing developments and the Housing Choice Voucher Program participants. The City would engage in candid conversations with the PHA and explore various strategies to support the program.

Housing subsidies and ongoing rental assistance programs like Housing Choice Vouchers are very important to provide housing stability and wellness for extremely low and low-income households. The need is high and waitlists are long, and as a result, many applicants are unable to access this important resource. The City of Escondido currently offers shallow subsidy program to twenty seniors who are severely rent burdened who are living in mobile home and apartments. Part of the condition of the program is to be on the Section 8 waitlist. The City will be expanding that program to 30 residents in fiscal year 2023 to help more vulnerable community members and align with its Housing Element goals. The subsidy currently ranges from $75 - $125 per month and is funded through Successor Housing Agency funds. 97 Item11.

Annual Action Plan

34 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Addressing homelessness is one the City’s top priorities. According to the 2023 Point-in-Time Count, the City had 488 unduplicated individuals experiencing homelessness (sheltered/unsheltered) in the City of Escondido. The City saw a 67% increase in the unsheltered population compared to 182 unduplicated individuals counted in the previous year.

The City Council voted in March 2023 to create a Homelessness Ad Hoc Subcommittee. The Subcommittee has met numerous times in April, May and June 2023 to discuss this important topic.

1) The City received $2.26M in HOME-ARP funds to support homeless services. The City Council conditionally approved the plan to fund supportive services and housing solutions.

2) The City Council voted on March 8, 2023 (I think this was the date) to create a Homelessness Ad Hoc Subcommittee. The Subcommittee has met numerous times in April and May 2023 to discuss this important topic.

3) The City of Escondido continues to facilitate the North County Homeless Group that brings together all eight North County cities on a monthly basis to discuss homelessness with representation from the Regional Task Force on Homelessness and the County of San Diego.

The City continues to expend funds related to its ESG-CV contracts which are set to end in September 30, 2023.

The Escondido Police Department’s Community Oriented Policing and Problem-Solving Unit (COPPS) contracts with a licensed mental health clinician to provide outreach and intensive care coordination with unhoused individuals living on the streets in Escondido. The COPPS Unit and Public Works Team conducts outreach and encampment cleanups with other nonprofit service providers and CalTrans multiple times a week.

The City anticipates awarding the Alabaster Jar Project $50,000 to fund their transitional housing program for survivors of human trafficking in Escondido with mental health, substance use, and educational programming and Center for Community Solutions $35,000 to support its local 49-bed emergency shelter in Escondido for domestic shelter survivors. Data shows a high correlation that between domestic violence and homelessness.

The City will be participating in a byname list pilot program with the County of San Diego.

Having an identified list will be able to understand the scope of the problem, right-size resources and design more meaningful programs.

The City is preparing to award a $1.6M grant in homelessness prevention and utility assistance in August 2023 to a subrecipient to help households in Escondido who are behind on their 98 Item11.

Annual Action Plan

35 OMB Control No: 2506-0117 (exp. 09/30/2021)
payment of rent, mortgage or utilities and are at-risk of homelessness using CDBG-CV funds.

In addition, the City will contract with Legal Aid Society of San Diego using CDBG funds on homelessness prevention and fair housing complaints.

The City facilitates a quarterly service provider meeting with program managers and providers from various health care facilities, mental health facilities and youth services to discuss gaps and opportunities in housing, health, social services, employment, education and youth needs.

The City has funded various homelessness prevention through the use of ESG, ESG-CV and CDBG-CV dollars. Since the City is not a recipient of ESG funds for FY 2023-2024, we will be looking creatively to other funding streams to fill this gap.

99 Item11.

Annual Action Plan

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AP-75 Barriers to affordable housing – 91.220(j)
Both market and governmental factors can pose constraints to the provision of adequate and affordable housing. Two of the greatest barriers to affordable housing continue to be cost and supply. As demonstrated in the 2020-2024 Consolidated Plan, there is a great need for affordable housing in Escondido. The City of Escondido will continue to remove any barriers to affordable housing possible by implementing a Housing Element in conformance with State law, and by reducing development and cost constraints to developing housing when possible.

The City of Escondido does experience barriers to affordable housing as identified in the 2020- 2024 Consolidated Plan, including governmental constraints, market conditions, lack of funding sources, and land and construction costs. Many of the barriers are not controlled by the City, such as land and construction costs and state/federal constraints.

The City of Escondido is currently in the process of updating its Housing Element. The City will follow up on any governmental constraints to housing development that are identified in the Housing Element, including appropriate amendments to the Zoning Code. In the meantime, the City continues to monitor zoning and development regulations, environmental requirements, and development processes, and will implement the streamlined permit process required by State law.

The City also is in the process of finalizing its East Valley Specific Plan which will help to comprehensively assess and address housing development at all levels in Escondido by increasing a housing trust fund for the area and increasing density bonuses.

The City will also continue to use available funding, including its HOME allocation, to provide assistance to first time homebuyers and provide additional affordable housing help to mitigate some barriers to affordable housing. The City continues to work with developers to assist them to provide as much affordable housing as possible.

100
Item11.

Annual Action Plan

37 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
This section discusses the City’s underserved needs and institutional structure for delivering housing and community development activities, as identified in the 2020-2024 Consolidated Plan.

The City hopes to meet the goal of increasing new/rehabilitated affordable rental units and assisting with homeownership. One barrier in implementing this goal is low participation in the first-time homebuyer program. As referenced earlier, the City continues to evaluate the program to determine the barriers to participation.

The City is currently in the process of certifying its Housing Element and East Valley Specific Plan, all of which will comprehensively assess and address housing development in Escondido. The City will coordinate with private developers to leverage financing to provide as many affordable housing opportunities as possible.

When the affordability period of an existing affordable housing project is nearing the end, the City works with the owners of the project to try to extend the regulatory agreements and the affordability period, to maintain the City’s affordable housing stock. The City has several options available to assist in preserving affordability, including refinancing an existing mortgage, providing incentives to the owner, and assisting in obtaining additional financing such as tax credits. The City also will encourage owners of existing projects with project-based vouchers, where loan terms are expiring, to convert to tenant-based voucher assistance.

HUD requires all CDBG and HOME funded activities to comply with HUD’s lead-based paint regulations. The City of Escondido is committed to addressing lead-based paint hazards. Federal law requires lead-based paint disclosure and education prior to leasing, renting, selling or purchasing most pre-1978 housing. The City will follow disclosure and warning requirements about lead-based paint, including incorporation of the “Protect Your Family from Lead in your Home” pamphlet in all applicable housing programs. The City will conduct required lead-based paint related activities for all HOME funded activities under title X regulations, such as notification, paint testing, risk assessment, hazard reduction or abatement, and clearance. All abatement activities will be performed by a certified professional. The City will also send staff to EPA-compliance lead based paint hazard training, when possible.

The City will implement its 5-year Strategic Plan, including a strategy to reduce the number of poverty-level families. The anti-poverty strategy includes economic development programs to increase business opportunities, business retention, employment marketability, job training, and connection to jobs and opportunities. The strategy also includes an increase of affordable housing opportunities, rapid re-housing, and homelessness prevention programs. Activities will be focused in the urban core, but also in the remainder of CDBG-eligible areas in the City.

Efforts will be coordinated with other agencies and non-profit organizations.

The City's Housing and Neighborhood Services Division will ensure compliance with HUD 101
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Annual Action Plan

38 OMB Control No: 2506-0117 (exp. 09/30/2021)
entitlement grants. It will develop and implement ways to increase operational efficiencies of HUD programs through enhanced coordination, technical assistance and effective oversight. The Housing and Neighborhood Services Division will continue to work on a consistent basis with other departments within the City, other government agencies, non-profit groups, and private industry, in addition to the Regional Taskforce on Homelessness (“CoC”), to coordinate provision of improvements, housing and services to the City’s residents, while administering the CDBG and HOME programs.

The City will continue to update its list of interested non-profits, affordable housing advocates, CHDOs, public agencies and community and neighborhood groups in order to facilitate the best coordination of services. During the Consolidated Plan period the City will continue to reach out to stakeholders to update progress and any new or changing needs. The City coordinates with many regional groups, including SANDAG, the Regional Task Force on Homelessness (“RTFH”), and the San Diego Regional Alliance for Fair Housing (“SDRAFFH”). The City will continue to be involved with various community groups involved with all aspects of community development, services and housing, and will assist them in the provision of affordable housing and services to help achieve the goals of the Consolidated Plan.

The Housing and Neighborhood Services Division will work closely with the City’s Economic Development Division to coordinate economic development goals with private industry, social service agencies, and businesses.

The Division also will continue to be involved with various community and neighborhood groups to coordinate provision of community facilities and services.

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Annual Action Plan

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00%

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section

92.205 is as follows:

None.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City does not currently have any projects with recapture restrictions. The City would 103
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Annual Action Plan

40 OMB Control No: 2506-0117 (exp. 09/30/2021)
impose recapture requirements that comply with HOME Final Rule, 24 CFR 92.254. If a property that is assisted with HOME funds is no longer owner-occupied, is refinanced or is sold, the HOME loan becomes due. Recapture provisions limit the amount to be recaptured to the net proceeds of the sale (sales price minus loan repayment – other than HOME funds – and closing costs). This applies to all units regardless of nature of sale. Recapture funds are re-invested by the City into HOME-eligible activities.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

The City of Escondido imposes recapture requirements that comply with the HOME Final Rule, 24 CFR 92.254. If a property that is assisted with HOME funds is no longer owner- occupied, is refinanced or is sold during the first ten years, the homeowner is responsible for repaying the entire principal amount plus interest to the City. Since the maximum amount loaned in the first-time homebuyer program is the lesser of $25,000 or 5 percent of the purchase price, the required affordability period of 24 CFR 92.254(a)(4) is ensured. Interest is forgiven after ten years, but repayment of principal is still required. Recapture funds are re-invested by the City into the HELP first-time homebuyer program, housing development, or other HOME-eligible activities.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

None.

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).

6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and

91.220(l)(2)(vii)).

7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR 92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

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Annual Action Plan

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Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment)

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

5. Describe performance standards for evaluating ESG.

105
Item11.

BUDGET ADJUSTMENT

REQUEST
Department: Development Services/HNS
For Finance Use Only
BA # ____________
Fiscal Year ________
Department Contact: Rodrigo Carrasco
City Council Meeting Date:
(attach staff report) 8/9/23

EXPLANATION OF REQUEST
The City will receive allocations of $1,446,858 in CDBG and $712,111 in HOME funds in Fiscal Year (“FY”) 2023-2024. The City has received $91,079 in residual receipt payments from HOME -funded projects that will be counted as HOME program income in FY 2023 -2024. Below is a list of recommended projects for the CDBG and HOME Programs in FY 2023-24.

BUDGET ADJUSTMENT INFORMATION
Project/Account Description Account Number
Amount of
Increase
Amount of
Decrease
CDBG Administration 116-109 $289,371
Mama’s Kitchen 115-109-349676 $7,500
Senior Cares 115-109-349419 $16,000
Legal Aid 115-109-349259 $35,000
The Alabaster Jar Project 115-109-349685 $50,000
Project Next 115-109-349686 $30,000
Neighborhood Cleanup 115-109-349687 $33,804
Center for Community Solutions 115-109-349680 $35,000
Code Compliance 115-109-349580 $107,723
Graffiti Eradication 115-109-349610 $107,723
WeeCARE 115-109-349688 $112,500
DocuSign Envelope ID: 4FCDB6DA-40B2-4252-A49A-5685B6EC39E2 Attachment 2
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Item11.

Washington Park Pool 115-109-349689 $197,237
Old Escondido Lighting 115-109-344902 $425,000
HOME Administrative 284-084 $80,319
First Time Homebuyer 284-084-NEWCODE $50,000
CHDO Set Aside 284-084-NEWCODE $120,497
Rehabilitation Multifamily 284-084-NEWCODE $552,392

APPROVALS

DEPARTMENT HEAD DATE FINANCE DATE
DocuSign Envelope ID: 4FCDB6DA-40B2-4252-A49A-5685B6EC39E2 8/3/2023
8/3/2023
Attachment 2
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Attachment 3
FY 2023-2024 CDBG Proposals

City Priority Codes
HML Homeless services
NR Neighborhood revitalization
BN Basic needs
HHD Health and Human Development
ED Economic Development
PS Public Safety

National Objective Codes
LMA Low- to moderate-income area benefit
LMC Low - to moderate-income clientele benefit
SBA Slum/blight area benefit
SBS Slum/blight spot basis
URG Urgent need
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Attachment 3
CDBG Funding Requests for Services FY 2023-2024
Total Requested $798,922

Applicant Project Name Funding
Request
National
Objective
City
Priority
Mama's Kitchen Medically Tailored Meal
Service $7,500 LMC BN
Community Services Dept. POWER Mobile Rec $8,390 LMC HHD Community Services Dept. Senior Cares $16,000 LMC BN
Meals-on-Wheels Greater
San Diego, Inc.

Escondido Senior Meal
Delivery & Social Services $30,000 LMC BN
Project Next (formerly The
San Marcos Promise) Future Ready $30,000 LMC HHD
Community Services Dept. Senior Transportation
Program $34,600 LMC BN
Legal Aid Society of San
Diego, Inc. Fair Housing Services $35,000 LMC BN/HML
The Alabaster Jar Project
Critical Care Therapeutic
Services to Human Trafficking
Survivors Program
$50,000 LMC HHD/HML
Community Services
Department Senior Nutrition $56,500 LMC BN
Alliance for Regional
Solutions/Interfaith
Community Services
Bridge to Housing Network -
Escondido Emergency Shelters $96,904 LMC HML
Sparkle Independent Living
Homes, LLC Sparkle Project - Shelter $217,000 LMC BN/HML Escondido Education

COMPACT
Homeless and Homelessness
Prevention Services $217,028 LMC BN/HML
*Voices for Children submitted an incomplete application without a funding request. 109
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Attachment 3
CDBG Funding Requests for Capital FY 2023-2024
Total Requested $2,301,320

Applicant Project Name Funding
Request
National
Objective
City
Priority
Center for Community
Solutions Hidden Valley House $35,000 LMC BN/HML
Housing and Neighborhood
Services Dept. Neighborhood Cleanup $44,000 LMA NR
Sparkle Independent Living
Homes, LLC Sparkle Project - Van $62,350 LMC BN
Housing and Neighborhood
Services Dept. Safe Parking: Pilot $95,250 LMC HML/BN
Code Compliance Part-time Officers $115,000 SBA NR
WeeCare, Inc. BOOST (Business Operation &
Optimization Support Tools) $150,000 LMC HHD
Community Services Washington Park Pool $200,000 LMA HHD Public Works Graffiti Removal $234,261 LMA NR
Engineering Old Escondido Lighting $425,000 LMA NR
The Alabaster Jar Project Home for Homeless Survivors
of Human Trafficking Program $940,459 LMC HML

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Attachment 4

City of Escondido, Fiscal Year 2023-2024
Anticipated CDBG Allocations: $1,446,858

Administration - 20% cap of allocation ($289,371 max)
Recommended Proposal Recommended
CDBG Funds

$289,371
Total Administration $289,371

Public Service - 15% cap of allocation ($217,028 max)
Basic Needs Recommended Requested Variance
Mama's Kitchen 7,500 7,500 -
Senior Cares 16,000 16,000

Homelessness Services/Emergency Shelters
Legal Aid 35,000 35,000 -
The Alabaster Jar Project 50,000 50,000 -

Health and Human Development
Project Next (formerly The San
Marcos Promise)
30,000 30,000

Total Services $138,500 $138,500 -

Uncapped Capital Improvement & Other Neighborhood Revitalization Activities - No max ($940,459)

Neighborhood Revitalization Recommended Requested Variance Neighborhood Cleanup 33,804 44,000 (10,196)
Old Escondido Lighting - Phase II 425,000 425,000 - Code Compliance 107,723 115,000 (7,277)
Graffiti Eradication 107,723 234,261 (126,538)

Health & Human Development
Washington Park Pool 197,237 200,000 (2,763)

Economic Development
WeeCare 112,500 150,000 (37,500)

Homelessness Services/Emergency Shelters
Center for Community Solutions 35,000 35,000 -

Total Capital $1,018,987
Total Allocated $1,446,858

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Attachment 4
Mama’s Kitchen Home Delivered Meal Service: Escondido ($7,500) Mama’s Kitchen’s Home-Delivered Meal Service provides medically tailored meals to low-to-moderate income Escondido residents facing critical illnesses such as cancer, type 2 diabetes, congestive heart failure and chronic kidney disease. The program meets the HUD national objective of benefitting LMI persons/households on a limited clientele basis. The program addresses the Con Plan goal of providing basic needs LMI people in Escondido. Funding would allow Mama’s Kitchen to expand services in Escondido. This program addresses the Con Plan’s Basic Needs Priority and this would be Mama’s Kitchen’s second round of City CDBG funding.

Senior Care ($16,000)
Senior Care provides services for LMI Escondido senior residents. The program has a dedicated resource center staff who assists customers who are struggling with basic needs and housing insecurity. The project is scheduled to start in September 2023 and end June 30, 2024. The staff provides access to resources such as social services, transportation and meal programs, and other services. The program addresses the Con Plan priority of providing basic needs to LMI clientele and meets the HUD national objective of benefitting LMI persons/households on a limited clientele basis.

Project Next (formerly San Marcos Promise) ($30,000)
The Future Ready program by Project Next provides services to assist LMI high school students in Escondido by establishing a future center at a high school in Escondido to create drop-in services, financial counseling, skill-building, and networking for career opportunities. The program receives referrals from schools and social workers. The requested funding would enable the program to expand s ervices to an Escondido High School. The program addresses the Con Plan priority of health and human development and the HUD national objective of benefitting LMI persons/households on a limited clientele basis.

Neighborhood Cleanup ($33,804)
Escondido Ne ighborhood Services staff arranges CDGB -funded neighborhood cleanups in order to beautify Escondido communities, and improve the appearance of neighborhoods. City staff coordinates 14 neighborhood cleanups throughout LMI communities in Escondido and facili tates quarterly Neighborhood Leadership Forums. The project is scheduled to start in September 2023 and end June 30, 2024 Neighborhood cleanups meet the City priority of neighborhood revitalization and the HUD national objective for the elimination of slum and blight on an area basis.

Legal Aid Society of San Diego ($35,000)
The Legal Aid Society of San Diego (LASSD) enforces fair housing rights and helps Escondido residents to maintain housing stability. The program provides services to Escondido residents including (1) education and outreach regarding rights and responsibilities under the Fair Housing Act and related State laws; (2) legal education, referral, advice/ and/or representation; (3) testing to detect fair housing discrimination from housing pro viders. The program meets the HUD fair housing requirement and benefits a limited clientele of LMI Escondido residents. The program addresses the Con Plan priority of preventing homelessness.

Center for Community Solutions ($35,000)
The Center for Community Solutions (“CCS”) operates Hidden Valley House, a domestic violence shelter, which was funded by Escondido using CDBG funds in FY 2022-2023. The proposal requests capital funding for the lease and maintenance of the Hidden Valley House domestic violence shelter in Escondido, which provides provide 45 households (120 adults and children) with a combined 3,000 nights of shelter and 112
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Attachment 4
services. The project will provide capital funds for utility expenses, computers, and other items. The CCS proposal for CDBG f unding addresses the City priority homeless services and homelessness prevention and the HUD national objective of benefitting LMI persons/households on a limited clientele basis.

The Alabaster Jar Project ($50,000)
The program provides shelter and therapeutic services for survivors of human trafficking who are at -risk of becoming homeless. The program addresses the Con Plan goal of providing homeless services and preventing homelessness and the HUD national objective of benefitting LMI persons/households on a limited clientele basis.

Code Compliance ($107,723)
CDBG-funded neighborhood revitalization efforts would include funding four part-time Code Compliance Officers to work in commercial and residential areas of CDBG -eligible census tracts. The officers would address code issues relating to business licensing, illegal signage and other appearance and compliance issues generally associated with commercial and residential areas. The project is scheduled to start in September 2023 and end June 30, 2 024. This project addresses the Con Plan’s Neighborhood Revitalization CDBG priority and the national objective of the elimination of slum and blight on an area basis.

Graffiti Removal ($107,723)
The Graffiti Removal Project provides funding for graffiti removal in qualifying low -mod income census tracts and applies only to private properties. CDBG funds can be used to remove graffiti from private homes, garages, fences and exterior surfaces of privately -owned businesses. The project is scheduled to start in September 2023 and end June 30, 2024. This project addresses the Con Plan’s Neighborhood Revitalization CDBG priority and the HUD national objective of elimination slum and blight on an area basis.

WeeCare ($112,500)
This program would help expand economic opportunities for 19 in -home, family child care providers in Escondido by training them to how to use essential tools to make their business operations more efficient.

The program will increase child care providers’ income, expand the provider’s c apacity to serve more children and create six new jobs. The project meets the local priority of economic development and the HUD national objective of benefitting LMI persons/households.

Washington Park Pool ($197,237)
CDBG-funded project to restore the Washington Park Pool, replacing antiquated infrastructure at a popular recreation facility in an Escondido LMI community. The work is scheduled to begin in January 2024 and estimated to be completed in June 2024. The upgrades to the facility at Washington Park will enable Escondido residents to use the Washington Park Pool during construction for the upgrades to the James A. Stone Pool at Grape Day Park. The project meets the local priority of health and human development and the HUD national objective of benefitting LMI persons/households on an area benefit basis.

Old Escondido Neighborhood Lighting Phase II ($425,000) This capital project will install LED street and acorn pedestrian -scaled lighting on Juniper Street in the Historic District of Escondido between Second Avenue and Ninth Avenue. This is the second phase of the project. The first phase of the project was allocated $595,370, and included the design work for both phases of the project. The project addresses the city priority of neighborhood revitalization by improving the livability of neighborhoods by safely connect residents to downtown Escondido. The project meets 113
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Attachment 4
the local priority of health and human development and the national objective of benefitting LMI persons/households on an area bene fit basis. The project is anticipated to start in winter 2024 and is expected to be completed by June 30, 2024.

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Attachment 5
HOME Investment Partnership Program
FY 2023-2024
Summary of Allocations

Available Funds
2023 Allocation Loan Repayments $712,111
Program Income $91,079
TOTAL $803,190

City's Administrative Costs
10% of 2023 Allocation Loan Payments $71,211
10% of 2023 Program Income $9,108
Total $80,319
Expenditures
CHDO Set-Aside (Mandatory 15% of allocation) $120,497
Residential Rehabilitation x 15 $552,392
First-Time Homebuyer Program Loans x 2 $50,000
Total $722,871

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Attachment 5
HOME Funding Allocations for FY 2023-2024

CHDO Set-Aside for Affordable Housing ($120,497)

At least 15 percent of HOME Investment Partnerships Program (HOME) funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization ( “CHDO”). A CHDO is a private nonprofit, community -based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience.

CHDO must act as the owner, developer, or sponsor of a project that is an eligible set -aside activity.

These eligible set-aside activities include: the acquisition and/or rehabilitation of rental housing; new construction of rental housing; acquisition and/or rehabilitation of homebuyer properties; new construction of homebuyer properties; and direct financial assistance to purchasers of HOME-assisted.

Due to the pandemic, HUD offered a waiver through the Consolidated Appropriations Act of 2019 which included a provision suspending the 24 -month commitment requirement for Community Housing Development Organization (CHDO) set -aside funds, as well as contin uing the suspension of the 24 - month commitment requirement for regular HOME Investment Partnerships Program (HOME) funds.

Both deadline requirements are suspended through December 31, 2023 and will become mandatory again starting in January 2024.

Preservation of Affordable Rental Housing ($552,392)
This priority relates to the improvement of the supply of rental housing in the City to meet the needs of Escondido residents. Overpayment for housing is a widespread housing problem in Escondido, especially among lower-income renters. Additionally, the rate of overcrowding is especially acute for large renter households. The City of Escondido has 3,875 people on the County’s waiting list for the Housing Choice Voucher Program commonly referred to as Section 8 which is a 21% increase from 2022. The majority of applicants are families followed by low-income single adults and persons experiencing disabilities.

The City plans to release a Request for Proposal (“RFP”) in the next 12 months to preserve affordable housing developments through rehabilitation of at least 15 multifamily rental units as stated in the Con Plan. While creating new affordable units is critical in addressing the crisis of housing affordability, preserving existing affordable units must not be overlooked. Preservation efforts help to prolong the useful life of a building and extend covenants which restricts those units for a longer affordability period.

It is worth noting that rehab is a cheaper alternative to new construction which allows the C ity to better leverage its limited funding sources. City staff anticipates the total cost of this project will be $1.3M and funding will be used from previous allocations to supplement that amount.

Conservation and Expansion of Affordable Homeownership Opportunities ($50,000) This priority relates to the need for homeownership in Escondido. The rate of homeownership in Escondido is 51.2%, which is lower than the state and national averages of 54.8% and 64.0% respectively as reported by the July 1, 2019 United States Census Quick Facts. 116
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Attachment 5
The City developed the Homebuyer Entry Loan Program (“HELP”) to assist first -time homebuyers in the purchase of their homes in 1996. The HELP program currently provides loans up to 5% of the purchase price of a home (up to a maximum of $25,000) to assist homebuyers earning 80% or less of the San Diego County area median income to purchase their first home. In April, the City partnered with San Diego Habitat for Humanity to award one HELP loan to a family who was able to pur chase a home on Hickory Street.

The First Time Homebuyer Program remains very popular. Although the public interest is there, the City has faced challenges, which have led to a decline in loan applications and the overall number of issuance of loans than previously anticipated. Some of the program’s major challenges continue to be an overall lack of housing inventory, high interest rates and strict federal regulations on the income levels and maximum purchase price limits. Prices for a single-family home have increased significantly over the past years, exceeding HUD’s annual maximum value limit.

The City recognizes this program is important for LMI income households who are trying to pursue homeownership. Elevating a family into ownerships not only helps t o stabilize that family and have tremendous generational trickle-down effects but it assists with freeing up rental units for another family.

Staff is in the process of evaluating the program and exploring ways to revamp it in an effort to make this a viable program once again. The City is recommending to fund two HELP loans valued at $25,000 each in FY 2023-24.
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STAFF REPORT

August 9, 2023
File Number 0685-10

SUBJECT
SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2020-1 (Public Services)

DEPARTMENT
Development Services

RECOMMENDATION
Request the City Council adopt Resolution 2023-82, setting the Special Tax Levy for Community Facilities District No. 2020-1 (“Public Services CFD”) for Fiscal Year 2023/24 Staff Recommendation: Approval (Development Services: Andrew Firestine, Director) Presenter: Andrew Firestine, Director of Development Services

FISCAL ANALYSIS
A special tax is levied annually on real property within the Community Facilities District No. 2020-1 and is collected through the County of San Diego Treasurer-Tax Collector’s Office. The proceeds from the special tax are used to provide public services including public safety, maintenance, administration, community development and services provided by the City of Escondido (“City”).

PREVIOUS ACTION
On Ma y 13, 2020, the City Council adopted Resolution No. 2020 -44 approving the establishment of Community Facilities District No. 2020-1 and authorizing the Council to adopt annually a resolution setting the Special Tax Levy.

On Jul 21, 2021, the City Council adopted Resolution No. 2021 -77, setting the Special Tax Levy for Community Facilities District No. 2020 -1 for F Y2021/22 on 216 developed lots located in The Villages Project.

On Jul 20, 2022, the City Council adopted Resolution No. 202 2-87, setting the Special Tax Levy for Community Facilities District No. 2020-1 for FY2022/23 on 437 developed lots located within the district.

BACKGROUND
On November 16, 2022, the City Council provided direction to staff to conduct further review and to explore options to adjust the special tax rate for the Public Services CFD. Particular interest was expressed 118
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in making modifications to the annual special tax rate to calibrate it to a more specific set of services, such as public safety, and to work within the existing Public Services CFD Rate and Method of Apportionment of Special Tax ("RMA") to reduce the rate to be more competitive with surrounding cities.

Staff has initiated a new fiscal impact analysis through NBS based on this direction with the in tention of evaluating the fiscal impact by development type for the existing land use categories in the Public Services CFD.

A draft of this study has been received by City staff. Additional time is needed to review its findings, engage with stakeholders, and formulate recommendations for City Council. To achieve this, staff is recommending that City Council take action on August 9 to set the annual special tax rate for Fiscal Year 2023/24 at the same rate as the previous year to meet the August 10 deadlin e to submit assessment information to the County. This is a firm deadline, although t he City may request the County Assessor/Auditor to reduce or cancel an assessment after the August 10 date. The County will not process any rate increases, only reductions.

Setting the annual special tax rate at the same rate as the previous year would maintain the current special tax rate while allowing staff to present the new fiscal impact analysis to City Council no later than October 2023 following additional staff review and stakeholder outreach . In October, the Council may direct reductions to the Public Services CFD special tax rate for the upcoming year. The County assesses a $15 per parcel correction fee. There are 556 lots that have annexed into the Public Services CFD , the total cost to the City to adjust the assessment would be $8,340.

Previously, the City contracted with Keyser Marston Ass ociates, Inc. (“KMA”) on January 15, 2020, to complete a fiscal impact analysis for new residential development. KMA reviewed the City’s FY2019/20 budget to determine the per capita cost of providing municipal services for new residential development.

The fiscal impact analysis determined that the per capita cost of providing municipal services for new residential development exceeds the anticipated revenue received.

On May 13, 2020, CFD No. 2020 -1 was formed and established a citywide Public Services CFD with the goal of making new development revenue neutral. The Public Services CFD provides a streamlined way for projects to offset their impact to ongoing public services through a special tax levied on the annual property tax bill. Voluntary annexation of a development to the Public Services CFD occurs by resolution of the City Council.

The special tax rate s are governed by the Rate and Method of Apportionment of Special Tax ("RMA") established at the time CFD No. 2020-1 was formed. The special tax rates were calculated at the time of formation based on the cost of providing public services, less revenue generated by the development for various classifications of residential property. The special tax rates for the Public Services CFD escalates at the maximum rate of inflation as determined by the Consumer Price Index and at the minimum rate of 2% per year. The applicable increase for the current year is the change in CPI of 7.7101%, although the proposed rate (the authorized levy for the current fiscal year) may be set at any rate up to this Maximum 119
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Special Tax rate. Exhibit “A” to Resolution No. 2023 -82 updates the Maximum Special Tax based on CPI, as directed by the escalation provisions within the RMA, whereas the Proposed Actual Special Tax is what is authorized and is equal to the rate for Fiscal Year 2022/23.

The City Council is required to set the special tax rate for all properties within the Public Services CFD that have received a building permit as of March 1 of that year. There are 556 developed lots located within CFD No 2020-1 that had building permits issued before March 1, 2023, that will be assessed the authorized special tax rate in FY2023/24.

RESOLUTIONS
A. Resolution No. 2023-82
B. Resolution No. 2023-82 Exhibit “A” Special Tax Rates for FY2023/24

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RESOLUTION NO. 2023-82

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE BODY
OF COMMUN ITY FACILITIES DISTRICT NO. 2020-1
(PUBLIC SERVICES), PROVIDING FOR THE LEVY OF AN

ANNUAL SPECIAL TAX FOR SUCH COMMUNITY FACILITIES
DISTRICT FOR FISCAL YEAR 2023/24

WHEREAS, the City Council of the City of Escondido , C alifornia (the “Legislative Body”), has initiated proceedings, held a public hearing, conducted an election , and received a favorable vote from the qualified electors to authorize the levy of a Special T ax in a Community Facilities D istrict, all as authorized pursuant to the terms and provisions of the “Mello -Roos Community Facilities Act of 1982 ,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”).

This Community Facilities District is designated as Community Facilities District No . 2020-1 (Public Services) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2020-1 (the “Ordinance”) pursuant to Section 53340 of the Government Code of the State of California, has authorized the levy of Special Taxes (as such term is defined in the Ordinance) within the District to finance authorized facilities; and
WHEREAS, Government Code section 53340 provides that this legislative body may provide, by resolution, for the levy of the Special Taxes in the current tax year at the same rates or at a lower rate than the indexed rates provided for in the Ordinance, if such resolution is adopted and a certified list of all parcels subject to the Special Tax levy including the amount of the Special Tax to be levied on each parcel for the current tax year (the “Certified Parcel List”) is timely filed by the clerk or other official designated by this legislative body with the Auditor of the County of San Diego (the “County Auditor”) on or before August 10 of the applicable tax year.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California, acting as the legislative body of Community Facilities District No. 2020-1 (“Public Services”):

1. That the above recitations are true.

2. That this legislative body hereby authorizes and provides for the levy of the Spe cial Tax within the District on those Taxable Properties (as such term is defined in the Ordinance) within the District for Fiscal Year 2023/24 so long as the rates of such Special Tax are the same rates or lower rates than the rates provided for in the Ordinance. The Proposed Special Tax Rates for the District for Fiscal Year 2023/24 are contained on Exhibit “A” attached to this Resolution and incorporated by this reference.

After adoption of this R esolution, the Finance Director of the City, or Finance Director’s designee, may make any necessary modifications to these Special Tax Rates to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amounts to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the Special Tax applicable to any category of parcels and can only be made prior to the submission of the tax rolls to the County Auditor.

3. That the Finance Director is hereby designated and directed to prepare and submit a Certified Parcel List to the County Auditor on or before August 10, or such later date to which the County Auditor may agree, setting forth the amount of the Special Tax to be levied on each Taxable Property within the District calculated pursuant to the Ordinance and subject to the limitations set forth in Section 2 above.

4. That th e Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Treasurer-Tax Collector of the County of San Diego is hereby authorized to deduct reasonable administrative costs incurred in collecting any said Special Tax.

Any Special Taxes that may not be collected on the County of San Diego (“County”) tax roll shall be 122
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collected through a direct billing procedure by the Treasurer of the City of Escondido, or his/her designee acting for and on behalf of the District.

5. That the County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the Special Tax.

6. That the County Auditor shall then, at the close of the tax collection period, promptly render to the District a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

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Resolution No. 2023-82
Exhibit “A”

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City of Escondido Community Facilities District No. 2020-1 (Public Services) Special Tax Rates for Fiscal Year 2023/24
Applicable to all Units Annexed as of March 1, 2023

Land Use
Category Density Unit
Maximum
Special Tax (1)(2)
Proposed Actual
Special Tax (2)(3)
1 Less than 5.5 DU/Acre DU $619.54 $575.19
2 5.5 to less than 18 DU/Acre DU $858.81 $797.33
3 18.0 to less than 30 DU/Acre DU $838.00 $778.01
4 30 DU/Acre or Greater DU $905.04 $840.25

1) The Assigned Special Tax Rates have been increased by the greater of the Index or 2% from the tax rates established at the time of formation in accordance with the formation documents.
2) Special Tax Rates shown above have been rounded to decimals shown, actual tax rates are not rounded.
3) The Proposed Actual Special Tax shown above is the authorized levy for the current fiscal year. The submitted actual levy may be reduced as directed by the Finance Director.
4) Dwelling unit or "DU" is as defined in the formation documents. 124
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KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP
8/16/2023
CONSENT CALENDAR - (C. MCKINNEY) - NOTICE OF COMPLETION FOR THE W 7TH AVENUE AND S BROADWAY WATER MAIN REPLACEMENT PROJECT - Request the City Council adopt Resolution No. 2023-99, authorizing the Deputy City Manager / Director of Utilities to file a Notice of Completion for the 7th Avenue and S Broadway Water Main Replacement Project.

CONSENT CALENDAR - (A. FIRESTINE) - AWARD CONSTRUCTION CONTRACT FOR WASHINGTON PARK FUTSAL COURTS - It is requested that the City Council adopt Resolution No. 2023-88 awarding the construction contract to the lowest responsible and responsive bidder, and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement for the Washington Park Futsal Courts CONSENT CALENDAR - (D. SHULTZ) - TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED JUNE 30, 2023 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended June 30, 2023.

CONSENT CALENDAR - (E. VARSO) - CALIFORNIA OFFICE OF EMERGENCY SERVICES FY 22-23 PAUL COVERDELL FORENSIC SCIENCE IMPROVEMENT PROGRAM GRANT AND BUDGET ADJUSTMENT - Request the City Council Adopt Resolution No. 2023-104 authorizing the Chief of Police to accept a FY 2022-23 California Office of Emergency Services (CalOES) Paul Coverdell Forensic Science Improvement Program Grant in the amount of $52,446; execute all documents necessary for the management and completion of the grant scope; and authorize the necessary budget adjustment needed to spend grant funds.

PUBLIC HEARING – (A. FIRESTINE) – PL23-0109 DOWNTOWN SPECIFIC PLAN/CREEKSIDE NEIGHBORHOOD DISTRICT - It is requested that the City Council amend the land use matrix table of the Downtown Specific Plan to allow restaurants with or without alcohol sales within the Creekside Neighborhood District.

PUBLIC HEARING – (A. FIRESTINE) – APPEAL OF THE PLANNING COMMISSION’S DECISION TO DENY AN ASSISTED LIVING FACIILITY – Request the City Council approve Resolution 2023-XX upholding an appeal of the Planning Commission’s decision to deny a Conditional Use Permit and Grading Exemption.

CURRENT BUSINESS - (M. MORASCO) - REVIEW OF CAMPAIGN CONTRIBUTION LIMITS CURRENT BUSINESS - (Z. BECK) - PUBLIC COMMENT POLICY
8/23/2023
PROCLAMATION - (J. MURDOCK) - NATIONAL PREPAREDNESS MONTH PUBLIC HEARING – (A. FIRESTINE) – CAREFREE MOBILEHOME PARK SHORT FORM APPLICATION - It is requested that the City Council approve and adopt resolution for Carefree Ranch Mobilehome Park short form rent control application to increase rents.

CURRENT BUSINESS - (A. FIRESTINE) - HOUSING ACCELERATION PROGRAM ("HAP") - GRANT $250,000 - It is requested that the City Council adopt Resolution No. 2023-XX authorizing the Director of Development Services to submit the Housing Acceleration Program 2.0 Grant application to the San Diego Association of Governments.

WORKSHOP - (J. PROCOPIO) - ANNUAL TRAFFIC SAFETY WORKSHOP 8/30/2023 - NO MEETING
9/6/2023 - NO MEETING (LABOR DAY)

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Escondido City CouncilAugust 9, 2023

Escondido City Council
August 9, 2023