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HomeMy WebLinkAbout2023-07-27; Grand Jury Report Response (Districts - All); Murphy, JeffTo the members of the: OUNCIL Datel CA ✓ cc/ CM ->if,. L□cM (3 )~ Council Me morandum July 27, 2023 To: From: Via: Re: Honorable Mayor Blackburn and Members of the City Council Jeff Murphy, Community Development Director Gary Barberio, Deputy City Manager, Community Services Geoff Patnoe, Assistant City Manager @ Grand Jury Report Response (Districts -All) {city of Carlsbad Memo ID# 2023077 The San Diego County Grand Jury published their May 2023 Report titled "Housing in San Diego County," which included findings and recommendations that affect all 18 cities and the unincorporated County. This memorandum provides background information on the Grand Jury, their report, and a copy of the city's response to the Grand Jury's findings and recommendations. Background The Grand Jury is a body of 19 citizens who are charged and sworn to investigate county matters of civil concern as well as inquire into public offenses committed or triable within the county. Grand Jury duties, powers, responsibilities, qualifications, and selection processes are outlined in the California Penal Code. Generally, the Grand Jury reviews and evaluates procedures, methods and systems utilized by government to determine whether they can be made more efficient and effective. It may examine any aspect of county government and city governm·ent, including special legislative districts and joint powers agencies, to ensure that the best interests of San Diego County citizens are being served. The Grand Jury may also inquire into written complaints brought to it by the public. The Grand Jury has subpoena powers and can summon individuals to testify before them (closed to the public) on various subject matters. At the conclusion of their investigation, the Grand Jury publishes a report, which includes findings and recommendations. Pursuant to California Penal Code section 933(c), affected public agencies are required to review and provide comments on those findings and recommendations to the Presiding Judge of the Superior Court by the dated specified in the report. Discussion In light of the state housing crisis and the lack of available, affordable housing throughout the region, the Grand Jury initiated an investigation into the amount of housing that was produced during the 5th Housing Element cycle (January 1, 2013, through December 21, 2020). Over the past year, the Grand Jury interviewed and requested information from staff from San Diego County and the 18 cities that comprise the San Diego Association of Governments (SAN DAG). Community Services Branch Community Development Department 1635 Fa raday Avenue I Carlsbad, CA 92008-7314 I 442-339-5088 t Council Memo -Grand Jury Report Response (Districts -All) July 27, 2023 Page 2 They also researched and reviewed various housing policies, state statutes regarding housing and housing development and each jurisdiction's adopted housing element. In response, a 2022-23 San Diego County Grand Jury Report, titled "Housing in San Diego County," was published on May 9, 2023 (Attachment A). The report details the methodology and analysis that was conducted, which resulted in a series of findings and recommendations. The report was then distributed to the county and 18 cities for review and formal response by August 8, 2023. The city provided its response to the findings and recommendations on July 26, 2023 (Attachment B), in compliance with Californ ia Penal Code section 933{c). Next Steps No further action is necessary. The Grand Jury report did not identify any legal deficiencies or code violations that require correction. The Grand Jury report only provided recommendations the jury members felt might improve housing availability and affordability in the region. And while the city may disagree with some of those recommendations, the city is not obligated or required to implement them. Attachment: A. 2022-2023 Grand Jury Report B. City response letter dated July 26, 2023 cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Jason Haber, Intergovernmental Affairs Director Ron Kemp, Senior Assistant City Attorney Mike Strong, Assistant Community Development Director Eric Lardy, City Planner Robert Efird, Principal Planner ,. -·-··----. - Attachment A HOUSING IN SAN DIEGO COUNTY SUMMARY Housing is a basic need. San Diego as a region is failing to build enough housing for its current residents and its future residents. Housing construction requires both available land and available money. However, both have been lacking. . . The 2022/2023 San Diego County Grand Jury (Grand Jury) researched this issue by examining how other areas of the State and the United States have attacked the twin problems of the lack of land and money to build housing. Our recommendations include several of the methods used by others to attack the issue of the lack of housing. INTRODUCTION At the October 3, 2022 joint meeting between the City Council of San Diego and the San Diego County Board of Supervisors, Nathan Fletcher made the following comments concerning the lack of affordable housing in San Diego. "We know that housing is foundational to life, it is the most basic thing that you need in order to be able to live a fulfilled and thriving life. We also know that in San Diego County, we have some of the least affordable housing anywhere in the country." 1 · Similarly, Sean Ela-Rivera, City of San Diego City Council President, stated, "Housing is a human right, and we must make this declaration to ensure we as elected leaders and our whole community own our responsibility to take the actions necessary to ensure every San Diegan has a real opportunity to have the decent and stable housing necessary for a dignified and healthy life."2 The lack of housing, in general and affordable housing, is driving people to leave California or to move outside of San Diego County to lower cost areas of the state. 3 The State of California and the San Diego Association of Governments (SANDAG) are pushing for the development of additional housing at all income levels to address these housing concerns. The Regional Housing Needs Assessment (RHNA) is mandated by State Housing Law as part of the periodic process of updating local housing elements, a part of each jurisdictions General Plan. RHNA quantifies the need for'housing within each jurisdiction during specified 8-year planning periods, referred to as cycles .. During the 5th Housing Element cycle (January 1, 2013 to December 31, 2020) the San Diego region was required by the State of California to plan for 161,980 housing units. The 161,980 housing units were divided among the four state-designated 1https://sdcounty.granicus.com/player/clip/3322?view id=9&redirect=true&h=S8a6fa0cc3586blb6379baef710el 99 2https://sdcounty.granicus.com/player/clip/8560?view id=3&redirect=true&h=cfa3ia51efbf80dcc585603256f241 08 3 https ://www ,ppi c.org/blog/ californ ias-popu lation-shifts-mayslead-to-new-i ncome- divides/#:~:text=People%201eavi ng%20the%20state%20have, for%20income%20patterns%20a cross%20Cal ifornia. . 1 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (fl.led May 9, 2023) income levels as measured against the Area Median Income (AMI). The income categories and the number ofho~s.gig units to be planned for were: Very low income (36,450 units), Low income (27,700 units), Moderate income (30,610 units), and Above moderate income (67,220 units)4. Please see-th~Discussimi-sectfon where income categories ai:ebroken down. However, for the 5th Housing Element Cycle only the City of Lemon Grove of the 19 SANDAG jurisdictions was able to permit enough housing at each of the levels of affordability5• As shown on the Table below all others failed to meet all four of the allocation goals and seven failed to meet any of the four allocation goals. Table -Jurisdictions and Results of Fifth RHNA Cycle Very low Low Income Moderate Above Moderate Income Jurisdiction Income (Goal) Income (Goal) (Goal) (Goal) Carlsbad Unmet Unmet Unmet Met Chula Vista Unmet Unmet Unmet Met Coronado Unmet Unmet Unmet Met Del Mar Unmet Unmet Met Met El Cajon Unmet Unmet Unmet Unmet Encinitas Unmet Unmet Unmet Met Escondido Unmet Unmet Unmet Unmet Imperial Beach Unmet Unmet Unmet Met La Mesa Unmet Unmet Unmet Met Lemon Grove Met Met Met Met National City Unmet Unmet Unmet Unmet Oceanside Unmet Unmet Unmet Unmet Poway Unmet Met Unmet Unmet San Diego Unmet Unmet Unmet Met San Marcos Unmet Unmet Unmet Met Santee Unmet Unmet Unmet Unmet Solana Beach Unmet Unmet Unmet Unmet Vista Unmet Unmet Unmet Met San Diego County Unmet Unmet Unmet Unmet In recognition that San Diego County is failing to provide enough housing for its current and future citizens, the Grand Jury decided to look at the failure of the cities and County to meet their Regional Housing Needs Allocation goals and evaluate steps that could be taken to increase the regional housing stock. This is particularly timely as we have entered the Sixth RHNA Cycle (June 30, 2020 to April 15, 2029). During this period the region needs to plan for an increase of approximately 10,000 housing units over the Fifth Cycle totaling 171,685 units. Again, the 4"5th Cycle Regional Housing Needs Assessment (RHNA) Fact Sheet" SAN DAG, no date, 5 ibid 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 2 ,, I 171,685 housing units were divided among the four income levels: (Very low 42,332), Low (26,627), Moderate (29,732), and Above moderate (72,992). 6 METHODOLOGY The .Grand Jury interviewed and requested information from staff from San Diego County and the 18 cities that comprise SANDAG: • County of San Diego • Carlsbad • Chula Vista • Coronado • DelMar • El Cajon • Encinitas • Escondido • Imperial Beach • LaMesa • Lemon Grove • National City • Oceanside • Poway • SanDiego • SanMarcos • Santee • Solana Beach • Vista The·Grand Jury researched and reviewed these documents: • SANDAG 5th Cycle Regional Housing Needs As.sessment (RHNA), Fact Sheet • SANDAG Regional Housing Needs Assessment Plan, Fifth Housing Element Cycle, Planning for Housing in the San Diego Region, 2010-2020 • An AuditReport prepared for the California State Auditor in relation to the audit ordered by the Joint Legislative Audit Committee. • The Planner's Guide to Specific Plans • SANDAG Pro-Housing Best Practices for the San Diego Region • SAND AG Capital Mapping for the San Diego Region • SANDAG 6th Cycle Regional Housing Needs Assessment (RHNA.), Fact Sheet • Appeals and Responses to Appeals by the Cities of Coronado, Lemon Grove, Solana Beach, and Imperial Beach regarding the Sixth Cycle RHNA allocations • The Housing Elements from each of the 19 jurisdictions that comprise SAND.AG. 6 https:ljwww.sandag.org/-/media/SANDAG/Documents/PDF/projects-and-programs/regional-initiatives/housing- land-use/regional-housing-needs-assessment/6th-cycle-regional-housing-needs-assessment-methodology-2019- 11-22.pdf 3 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) The.Grand· Jury also reviewed the following California statutes regarding housing including: • • • • • • • The Sustainable Communities and Climate Protection Act (SB375) The Housing Accountability Act of 1982 and subsequent amendments (SB 167), (AB678), (AB 15i5), (AB 3194), (SB 330) Changes to Local Planning (AB1397) Housing Crisis Act of2019 (SB330) Streamlined Affordable Housing Act (SB35) Surplus Land Act (AB 1486) Housing on Educational Properties (AB2295) DISCUSSION Tlte Regional Housing Needs Assessment Process Since 1969, every eight years, the State of California has required all local governments ( cities and counties) to plan to meet the housing needs of everyone in the community. 7 This planning process ends with the creation of the Regional Housing Needs Allocation or RHNA. The process has four main components 8: • RHNA Determination -As a first step, the California Department of Finance projects future population and household formation within the state over an eight-year period. Then, the California Department of Housing and Community Development (HCD), in consultation with the local lead agency, projects the regionwide housing need. SAND AG is the local lead · agency for San Diego County. The projections are based on vacancy rates, household size, and other factors. The housing need is subdivided into four income categories based on the Average Median Income (AMI). For San Diego County, in 2022 the AMI was $106,900 for a family offour.9 The categories are: Very .low (<50% of AMI), Low (50 to 80% of AMI), Moderate (80 to 120% of AMI), and Above moderate (> 120% AMI). • RHNA Plan Methodology-SANDAG and the 18 cities and the County of San Diego prepare a methodology that distributes the RHNA Determination to each city and the County. The plan is required to advance state objectives such as Senate Bill 375 10 which requires consistency between the RHNA Plan and the development pattern of the Sustainable Communities Strategy (SCS). SB 375 also requires that the SCS land use pattern, and the RHNA, aid in meeting the greenhouse gas (GHG) reduction targe'ts set by the California Air Resources Board. • RHNA Plan Allocation-Using the RHNA Plan methodology, a specific number of housing units are allocated to each city and the County; in each of the four income categories. 7 https:/ /www.hcd.ca.gov/plan ning-an d-com mun ity-deve lopment/regional-ho using-needs-allocation 8 https://www.sandag.org/-/media/SANDAG/Documents/PDF/proiects-and-programs/regional-initiatives/housing- land-use/regional-housing-needs-assessment/6th-cycle-regional-housing-needs-assessment-fact-sheet-2020-02- 01.pdf 9 https :/ /www .sand i egocounty .gov /sd hcd/ renta 1-assistan ce/in come-Ii m its-a mi/ 10 https :/ /legi nfo. I egislatu re. ca.gov /faces/bi 11 N avCli ent.xhtml ?bi ll_i d=200720080S83 75 4 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) • Housing Element Updates-For the final step, each city-and the County are required to update their Housing Element to_meettheir_allo.catio_os 11• Ihe_Housing Element is that part of the General Plan that lays out how the city and the County will meet their allocations. The Housing Element includes an inventory of sites for dev-elopmeni at each of the four income levels. If necessary, it also identifies sites that could be rezoned to accommodate shortfalls in the number of sites identified vs the number of sites allocated. Once completed and approved by the jurisdiction's political leaders, the Housing Elements are reviewed by HCD for conformance with State laws and mandates. In most cases the HCD will require revisions to bring it .into compliance with State laws and mandates. Failure to get HCD approval of its Ho11.sing Element opens a local government to a number of potential penalties .including exposure to litigation from housing rights organizations, developers and HCD itself, loss of its ability to issue permits and control development in its jurisdiction, financial penalties including fines of up to $100,000/month, and court ordered receivership to bring the jurisdiction's Housing Element into substantial compliance with HCD12• Cities and Planning for Housing In 2012, the State of California dissolved redevelopment agencies. Before that, local governments often had used redevelopment money to acquire land and develop housing on their own or to assist private developers in creating housing. Instead, cities and the County now use other planning techniques to increase opportunities for the private sector to develop housing in general and affordable hous.ing. The State of California already has many laws in place to encourage the development of housing. Several local governments have gone above the State minimum requirements to encourage the development ofhous.ing. Some examples include: • Poway is planning to include incentives for deed-restricting Accessory Dwelling Units (ADUs; aka "Granny Flats") and put into place allowances for larger ADUs (up to 1,500 square feet) to meet the needs of larger low-income households. 13 • Encinitas 14 and the County of San Diego 15 have Permit Ready ADU plans for residents to use in planning and developing AD Us. • Del Mar, similar to Poway, allows construction of a larger ADU on a lot if the unit is deed restricted to low-income renters 16• 11 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB1398 12 https://abag.ca.gov/sites/default/files/documents/2021-06/Conseguences%20of%20Non- Compliance%20with%20Housing%20Laws.pdf 13 https://www.poway.org/DocumentCenter/View/8172/Draft-Poway-2020-2029-Housing-Element-Update?bidld= 14 https :// en ci n itasca.gov /p radu 15 https://www.sandiegocounty.gov/content/sdc/pds/bldg/adu_plans.html 16 https://www.delmar.ea.us/DocumentCenter/View/8445/04 Housing-Plan 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 5 • Santee passed Ordinance 592 enacting the Essential Housing program to boost housing production and improve housing affordability by expediting and incentivizing the construction of new housing. It allows certain housing developments to be approved ministerially (essentially over the counter), if they meet specific criteria.17 Under the ordinance the Planning Director has 30 days to review the application and if it meets the criteria. 18 • San Diego County encourages the development of ADUs in unincorporated areas by waiving building permit fees, onsite wastewater fees, development impact fees, park fees, traffic impact fees, and drainage fees.19 City of Lemon Grove As noted, the City of Lemon Grove successfully met their RIINA housing allocations for each of the income categories identified by SANDAG in the Fifth RHNA Cycle20• The city benefited from having the Citronica development (an affordable housing development) in the planning process prior to the beginning of the Fifth Cycle. Additionally, Lemon Grove implemented zoning changes (raising height limits, increasing density) and amended its Downtown Specific Plan to include more housing. Each of these measures helped the city to meet its allocations in the other income categories. Lemon Grove also benefited as a developer came in and developed one of the last large vacant tracts of land within the city during the Fifth RIINA cycle. Specific Plans Per the Governor's Office of Planning and Research (OPR), 21 a specific plan addresses development at a defmed area within a city or county's boundaries. Specific plans may be general and set forth broad policy concepts, or they may be detailed and give direction for every facet of development including the type, location, and intensity of uses. Specific plans can also give design guidelines for subdivisions and for infrastructure in the area. One of the benefits of creating a specific plan is that it can be used to streamline development by providing a framework for development and complying with California Environmental Quality Act guidelines. Several cities, besides Lemon Grove, have successfully used specific plans to promote the development of housing, particularly in areas near mobility hubs. Per SAND AG, a mobility hub is a community with high concentration of people, destinations, and travel choices22• El Cajon and Chula Vista are just two of the many cities in the County that have used specific plans to encourage housing development. 17 https://www.sandiegocounty.gov/content/dam/sdc/pds/gpupdate/06-Housing-Element-2021.pdf 18 https://www.cityofsanteeca.gov/services/development-services/plannlng-and-zoning-services/essential- housing-program 19 County of San Diego, 6th Cycle Housing Element Update, County of San Diego General Plan, July 14, 2021 20 https://www.sandiegocounty.gov/content/dam/sdc/pds/gpupdate/06-Housing-Element-2021 21 https:ljcaliforniareleaf.org/wp-content/uploads/2019/06/0PR-A-Planriers-Guide-to-Specific-Plans.odf 22 https://sandag.org/~/iink.aspx?_id=7C64DSA10SC14CE6873837EB99ASE5Fl&_z=z 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT {filed May 9, 2023) 6 ·1 El__Gajon adopted a_Transit District Specific Plan (TDSP)23 to transform the area around the El Cajon Transit Center. Among.the key goals of the TDSP are to: "Establish a mix of transit- . : ·:~supp-ortivelancl UStIS~that increase housing opportunities and enhances transit ridership; Improve the safety and comfort of the mobility corridors for pedestrians and bicyclists to increase the number of trips made by foot and bicycle to and from the. transit station; Spur revitalization of the area through public and private investment; Highlight neighborhood identity; and Remove barriers to smart growth development." Chula Vista adopted the Palomar Gateway Plan for the portion of the city near the intersection of ~alomar Street ~d Interstate Highway 5. 24 According to the City· of Chula Vista Plan, the goal of the Palomar Gateway Specific plan is to prov1de additional housing and mixed-use development (residential and commercial) that take advantage of having a major transit station within walking distance. Housing Bonds Issued by Local and Regional Governments As noted earlier, a major impediment to creating additional housing has been the lack of money formerly available from redevelopment agencies. As a result, some local and regional governments elsewhere in California have either issued or are planning to issue bonds to assist in the development of affordable housing. Some examples are listed below. In November 2016, Santa Clara County voters approved Measure A, to raise $950 million .for the construction of affordable housing25 • According to the County of Santa Clara, Office of Supportive Housing, Measure A was intended to: increase the scope and breadth of supportive housing for special needs populations, including homeless and chronically homeless persons; increase the supply of housing that is affordable to extremely low-income households; and improve coordination and collaboration among the County, the cities, other governmental agencies, and the affordable housing community. As of June 2022, Measure A funding has been used to create over 4,000 new apartments, pay for the renovation of nearly 700 housing units, assist with the construction of 47 housing developments, and assisted over 200 families to finance their first homes26• In 2019, the California legislature enacted AB 1487 that, with the governor's signature, created the Bay Area Housing Finance Authority (BARF A). According to the Legislative Analyst: "One of the authority's major purposes was to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area." 27 The bill specifically authorized BARF A to: " ... among other things, raise and allocate new revenue, incur and issue bonds and other indebtedness, 23 https://www.elcajon.gov/home/showpublisheddocument/18727/638061165873470000 24 https:ljwww.chulavistaca.gov/home/showpublisheddocument/7356/635579674066370000 25 https://osh .sccgov .org/housing-com munity-development/2016-measu re-affordable-housing-bond 26 https://osh.sccgov.org/housing-community-development/2016-measure-affordable-housing-bond/2016- measure-housing-bond 27 https://leginfo.l egis lature.ca.gov /faces/billTextClient.xhtml ?bi ll_id~201920200AB 1487 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 7 and allocate funds to the various cities, counties, and other public agencies and affordable housing proje<;:,ts within its jurisdiction to :finance affordable housing development projects, preserve and enhance existing affordable housing, and fund tenant protection programs." (NOTE: Bolding by Grand Jury). In 2022, the legislature enacted SB 679 that, with the governor's signature, created the Los Angeles County Affordable Housing Solutions Agency28• According to the Legislative Analyst: "This bill would authorize the agency to, among other things, raise and allocate new revenue, incur and issue bonds and other indebtedness, and place on the ballot in Los Angeles County, including all of its incorporated cities, funding measures ... "(NOTE: Bolding by Grand Jury). Last legislative session, California State Senator Ben Hueso, representing San Diego and Imperial Counties, introduced SB 1105, "The San Diego Regional Equitable and Environmentally Friendly Housing Act''29• This bill, which did not make it out of committee, would have established the San Diego Regional Equitable and Environmentally Friendly Affordable Housing Agency. This bill was aimed at increasing housing supply in San Diego County by providing funding and technical assistance for housing projects and programs, equitable housing preservation, and rental protection programs. The bill would have authorized the agency to raise money either by taxes and fees of various kinds or by issuing revenue bonds (NOTE: Bolding by Grand Jury). Taxes and Fees Used to Further Housing Development Another way some local governments have raised money for housing development is by increasing taxes and fees on businesses and developers. Some recent examples from around the United States and locally are: In 2021, the City of Seattle implemented a payroll expense tax to help fund housing in the city. According to the Seattle's website, in 2022 the payroll expense tax is required of businesses with $7,386,494 or more of payroll expense in Seattle in 2021, and compensation in Seattle for the current calendar year (2022) paid to at least one employee whose annual compensation is $158,282 or more. 30 According to the City of Seattle, Department of Finance and Administrative Services, there were over 500 firms paying this tax. 31 Per a recent news article from a Seattle area newspaper the tax brought in approximately $231 million in its first year. 32 Sixty-two percent of the revenues from the City of Seattle payroll tax are dedicated to the construction of affordable housing33• 28 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill id=202120220SB679 29 https://leginfo.legislature.ca.gov/faces/billNavCllent.xhtml?bill_id=202120220SB1105 30 https://www.seattle.gov/ city-fl nance/buslness-taxes-an d-1 icenses/seattle-taxes/payroll-expense-tax 31 City of Seattle, Department of Finance and Administrative Services, email, December 21, 2022 32 https://www.seattletimes.com/seattle-news/seattles-jum pstart-tax-on-big-businesses-salaries-upheid-by-wa- court/ 33https://library.municode.com/WA/seattle/codes/municipai ·code?nodeld=TITSREFITA SUBTITLE IITA CH5.38PA EXTA 5.38.0S0ALAP 8 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) The City of San Diego, among other local jurisdictions, charges a fee (the Housing Impact Fee) on commercial developments within the city. The fees are deposited into the City's Affordable Housing Fund. The San Diego Housing Commission (SDHC) administers the Affordable Housing Fund, which helps meet the housing needs of the City's very low, low, and median income households. According to the SDHC website,34 the Commission controls nearly 600 properties that include over 24,000 affordable units. Workforce Housing for Personnel in Education A recent report by cityLAB35, the,research and design center of Architecture and Urban Design at UCLA, suggested that schools may be a large potential source ofland for housing. cityLAB noted in their report that on many campuses, prime sites for affordable housing development include parking lots, portable classrooms, or derelict buildings. In 2016, the California legislature enacted, and the gpvemor signed, SB 1413. 36 The Act authorized a school district to establish and implement programs to address the affordable housing needs of teachers and school district employees. In 2019, the California legislature enacted, and the governor signed, AB 1719, extending this program to community college districts. 37 In California, there are already some examples of school and university districts developing workforce housing for educational staff. For example, in 2001 the Santa Clara Unified School District constructed the 40-unit Casa Del Maestro Apartment Complex for District teachers38• This program was so supcessful that an additional 30 units were constructed in 2006. The 70 units are rented at below market rate (80%)39• The Casa De1 Maestro Apartment Complex is located on a school site and includes 1 and 2-bedroom units with a one car garage. Teachers can sign up for the waiting list if they are within their first 10 years of employment with the District. In 2019, San Francisco voters passed Proposition E; the Affordable Housing and Educator Housing proposition 4°. The first project to be built under Proposition Eis the Shirley Chisholm Village.41 It is currently under construction on a property formerly used by the school district for storage and will provide new homes for San Francisco Unified School District (SFUSD) educators and employees at a variety of income levels. 34https://public.tableau.com/app/profile/san.diego.housing.commission.sdhc./viz/CityofSanDiegoAffordableHousi ngOvervi ew / AffordableHousingOverview 35 https://www.csba.org/- /media/CSBA/Files/Advocacy/LegislativeAdvocacy/ResearchReport.ashx?la:::en&rev:::2dOb1e2e409f4dc6b3177338 d016cbbl 36 https://legi nfo. legislature.ca.gov /faces/bill N avCI ient.xhtm I ?bill_id:::2015201605B 1413 37 https://leginfo. legislature. ca.gov /faces/bill NavCli ent.xhtml ?b ill_id :::202120220AB1719 38 https://www.santaclarausd.org/Page/3537 39 ibid 40 https://sfelections.sfgov.org/november-5-2019-election-results-summary 41 https://www.scv-midpen.com/ 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 9 The University of California at Irvine (UCI) also provides educational workforce housing. The Irvine Campus Housing Authority (ICHA 42) was created to develop and maintain University Hills, a for-sale and rental housing community on the UCI campus. The goal was to provide affordable housing to eligible full-time UCI employees. The community has four apartment communities, two condominium associations, townhomes, paired homes, single family detached homes and a few custom homes. The San Diego Unified School District (SDUSD) was able to pass Proposition U at the last election. Under Proposition U, SDUSD is planning a program for educator workforce housing. 43 No others among the public school districts, community colleges, and universities in San Diego County have a similar program. However, we note that the City of Poway does give preference to Poway Unified School District (PUSD) employees when affordable housing becomes vacant in city-owned housing units. According to the Draft Housing Element, the city is to: "Support the Poway Unified School District by coordinating affordable housing activities with the school district. "44 Transit Agencies and Housing According to the websites of the two major transit agencies in San Diego County, North County Transit District (NCTD) and Metropolitan Transit System (MTS), both are actively involved in furthering development at properties they own or control. As ofNovember 2022, the NCTD website lists five projects that are in the process of planning or are actively in the development phase45• These include developments at the Oceanside and Escondido Transit Centers, two Coaster Stations in Carlsbad, and at seven Sprinter Station Parking lots. In the last two decades, NCTD had attempted twice to work with the City of Solana Beach to develop the property it owns there. However, neither effort was successful. 46, 47 Similarly, MTS' s website identifies a number of properties throughout their system available for joint development opportunities. 48 MTS is also currently actively involved in developing affordable housing at its Beyer Boulevard Trolley Station, in south San Diego, in conjunction with Affirmed Housing, an affordable housing developer.49 Religious Institutions and Housing Another potential source of land that could be available for housing are religious institutions. A local non-profit, Yes in God's Backyard San Diego (YIGBY San Diego), is seeking to work with faith communities to build affordable housing in the San Diego Region. According to their 42 https://icha.uci.edu/about-university-hills/ 43 https://www.sdvote.com/content/dam/rov/en/sb/SB-ENG-625.pdf#page=128 44 City of Poway, Draft Housing Element 2020-2029, July 2021. 45 https://gonctd.com/real-estate-redevelopment/ 46 San Diego Union-Tribune, "Solana Beach council to discuss sand, train station project," January 20, 2007 47 Del Mar Times, "Solana Beach council shown top design for train station," October 5, 2016 48 https://www.sdmts.com/business-center/real-estate 49 https://www.sdmts.com/inside-mts/media-center/news-releases/mts-approves-new-affordable-housing- development-south-bay 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 10 website, they are pushing to develop 3,000 housing units on land owned or controlled by - religious institutions here in San Diego by 2025. They state, "Our vision is to be a resource to faith communities that want to use their surplus land to develop much needed affordable housing in the San Diego region. Our approach is to help congregations create a triple bottom line where they are providing mission driven housing solutions, using environmentally sustainable materials and contributing to their own financial well-being."50 Locally, YIGBY San Diego and the Bethel AME Church in San Diego are moving ahead to build a transit-oriented development with 26 one-bedroom apartments on church property at Imperial Avenue and 32nd Street. 51 State Senator Scott Wiener of San Francisco recently introduced SB 4. This bill would reduce barriers that religious and nonprofit organizations often face when planning multi-family housing projects on their properties. 52 53 It also allows this to occur even if local zoning prevents this. According to a recent study by the Temer Center for Housing Innovation at UC Berkeley,54 there are nearly 40,000 acres ofland controlled by religious institutions throughoutthe State of California that could be developed for affordable housing. Similar to school districts, areas that could be developed include parking lots and surplus land owned or controlled by the religious institutions. In a public comment on the City of Solana Beach's Housing Element, St. James Catholic Parish, noted that they had ''been working with the San Diego chapter of Catholic Charities in identifying potential uses for available land we possess at the south end of our property. We would like to go on record expressing an interest in developing this land for public benefit, specifically housing to support low-income individuals. Please consider including this intention in your Housing Element Update."55 FACTS AND FINDINGS Finding 01: The City of Lemon Grove met its housing allocation for all the income categories identified by SANDAG in the Fifth RHNA Cycle. Finding 02: The County of San Diego failed to meet their housing allocation for all income levels. 50 https://yigby .org/ a bout-yigby /#top 51 San Diego Union-Tribune, Michael Smolens Column: "Effort to ease housing construction on church land gets a new life," December 21, 2022 52 https://sdll.senate.ca.gov/legislation 53 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill id=202320240SB4 54 https:/lternercenter.berkeley.edu/research-and-policy/faith-based-housing-development. 55https://www.cityofsolanabeach.org/sites/default/files/Solana%20Beach/Community%20Development/Housing% 20Element%20Update/Solana%20Beach%20Housing%20Element%20Update February2023 Clean.pdf 11 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) Finding 03:. · The following cities did not meet their housing allocations for all income categories: Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, Escondido, hnperial Beach, La Mesa, National City, Oceanside, Poway, San Diego, San Marcos, Santee, Solana Beach and Vista. Finding 04: The San Diego region failed to meet its housing allocations for each of the income categories identified by SANDAG in the Fifth RIINA Cycle. Fact: In 2018, the City of El Cajon implemented its Transit District Specific Plan to transform the area around the El Cajon Transit Center and increase the housing stock in that area. Fact: In 2013, the City of Chula Vista initiated its Palomar Gateway Specific Plan with the goal of providing housing and mixed-use development near the Palomar Street trolley station. Finding 05: Specific plans are useful tools in spurring development, including housing development, and have been used by El Cajon and Chula Vista among others. Fact: In November 2016, Santa Clara County voters approved Measure A -the $950 million affordable housing bond measure. Fact: As of June 2022, Santa Clara County's Measure A funding has.been used to create new apartments and housing developments, pay to renovate housing, and allocate money to a first- time homebuyer program. Fact: In 2019 the Bay Area Financing Housing Authority was authorized for the San Francisco Bay Area with the express intention of raising money to finance development of additional housing throughout the San Francisco Bay Area. Fact: In 2022 the Los Angeles County Affordable Housing Solutions agency was formed with ability to raise money to finance development of additional housing throughout Los Angeles. Fact: The City of Seattle recently implemented a payroll tax on select companies. This year companies with sales of more than $7,386,494 per year are taxed on the number of employees making more than $158,282 per year. Over 500 companies paid the tax. Fact: Currently, the City of San Diego levies a Housing hnpact Fee on commercial development and the funds levied are deposited into the City's Affordable Housing Fund. Monies in that fund are used by the San Diego Housing Commission to develop its programs for affordabfo housing development, housing vouchers, etc. · Fact: In California, Santa Clara County and the San Franciscq Bay and Los Angeles areas are using or are planning to use the financing authority given to them to fund the current and future development of affordable housing. Fact: Housing impact fees are used to generate funds for affordable housing by the City of San Diego. 12 2022/2023 SAN DIEGO COUNI'Y GRAND JURY REPORT (filed May 9, 2023) Fact: In Seattle, the City is using its authority to levy taxes to fund the current and future development of affordable housing. Fact: cityLAB identified school districts as government entities that have land available for construction of affordable housing, particularly for employees of the district. Fact: SFUSD identified underutilized land it owned and is developing it, in conjunction with the City of San Francisco, into a residential community with housing set aside for district employees. Fact: The Santa Clara School District constructed workforce housing for its personnel more than a decade ago. Fact: The University of California at Irvine developed housing on the campus for full-time university employees and their families. Fact: North County Transit District is making surplus land available for development at several locations under its ownership or control. Fact: North County Transit District recently agreed to develop land it controls, in conjunction with a developer, for a mixed-use development at the Oceanside Transit Center. The development is to include affordable housing. Fact: The Metropolitan Transit System has identified surplus land available for development at several locations under its ownership or control. Fact: The Metropolitan Transit System is working with a housing developer to construct affordable housing at its Beyer Boulevard Trolley Station. Fact: YIGBY San Diego, a local group, is working with religious institutions in the San Diego region to develop affordable housing on land owned or controlled by those institutions. Fact: YIGBY San Diego is working with Bethel AME church, to build an affordable housing development for veterans in the City of San Diego. Fact: The Temer Center of Housing Innovation identified religious institutions as potentially having land available for construction of affordable housing. Finding 06: Both transit agencies in San Diego County (NCTD and MTS) have made land available for development and are actively developing projects that include housing, among other uses. 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 13 RECOMMENDATIONS The 2022/2023 San Diego County Grand Jury recommends that the Chief Administrative Officer of the County of San Diego, the Mayor and City Council for the City of San Diego, and the City Managers of the cities of Carlsbad, Chula Vista, Coronado, Del Mar; -El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside, Poway, San Marcos, Santee, Solana Beach, and Vista: 23-01: 23-02: 23-03: 23-04: Consider, if they have not done so, using specific plans ( as def"med by the Governor's Office of Planning and Research) to facilitate the permitting and development of housing, particularly affordable housing, in their jurisdictions. Consider working with school districts and community college districts within their jurisdictions to identify deveJopable land for housing owned by districts within their boundaries. Consider working with local religious institutions within their jurisdictions to identify land developable for housing, particularly affordable housing. Consider drafting revenue-generating legislation at the jurisdiction level, if feasible and legal e.g., the Seattle Jumpstart Tax. Monies generated by such a tax to fund or assist in funding the construction of housing, particularly affordable housing. The 2022/2023 San Diego County Grand Jury recommends that the Chief Administrative Officer of the County of San Diego, Mayor and City Counc~l of the City of San Diego, and the City Managers of the cities of Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside, Poway, San Marcos, Santee, Solana Beach, and Vista: 23-05: 23-06: Consider providing legislative support to re-introducing in the State Legislature SB 1105, or similar legislation, to create a San Diego County agency that could raise revenue for housing. Consider providing legislative support to SB4, which is currently before the legislature. This bill makes it easier to provide affordable housing on land owned by religious institutions. 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 14 The 2022/2023 San Diego County Grand Jury recommends that City Manager of the city of Solana ~each: · 23-07: Consider requesting proposals for development at the NCTD Coaster Station property to include affordable housing. The 2022/2023 San Diego County Grand Jury recommends that the Chief Administrative Officer of the County of San Diego and the City Managers of the cities of Escondido, San Marcos, Vista, Oceanside, and Carlsbad: 23-08: Continue working with the North County Transit to identify land suitable for development of housing, particularly affordable housing, at major transit stops including Coaster and Sprinter train and bus lines as appropriate. The 2022/2023 San Diego County Grand Jury recommends that the Chief Administrative Officer of the County of San Diego and the City Managers of the cities of El Cajon, La Mesa, Lemon Grove, National City, and Chula Vista: 23-09: Continue working with the Metropolitan Transit District to identify land suitable for development of housing, particularly affordable housing, at major transit stops including trolley and bus lines as appropriate. REQUIREMENTS AND INSTRUCTIONS The California Penal Code §933(c) requires any public agency which the Grand Jury has reviewed, and about which it has issued a final report, to comment to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the agency. Such comment shall be made no later than 90 days after the Grand Jury publishes its report (filed with the Clerk of the Court); except that in the case of a report containing findings and recommendations pertaining to a department or agency headed by an elected County official (e.g. District Attorney, Sheriff, etc.), such comment shall be made within 60 days to the Presiding Judge with an information copy sent to the Board of Supervisors. Furthermore, California Penal Code §933.0S(a), (b), (c), details, as follows, the manner in which such comment(s) are to be made: (a) As to each grand jury finding, the responding person or entity shall indicate one of the following: (1) The respondent agrees with the fmding (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) As to each grand jury recommendation, the responding person or entity shall rep01t one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) 15 (2) The recommendation has not yet been_implemented, hut will be implemented in the future, with a time frame for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a time frame for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This time frame shall not exceed six months from the date of publication of the grand jury report. ( 4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an e~planatign therefor. ( c) If a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the Board of Supervisors shall respond if requested by the grand jury, but the response of the Board of Supervisors shall address only those budgetary or personnel matters over which it has some decision-making authority. The response of the elected agency or.department head shall address all aspects of the findings or recommendations affecting his or her agency or department. Comments to the Presiding Judge of the Superior Court in compliance with the Penal Code §933.05 are required from the: Resl!onding Agenc::f Recommendations Date Chief Administrative Officer, 23-01 through 23-06, 8/9/2023 County of San Diego 23-08 through 23-09 Mayor, City of San Diego 23-01 through 23-06 8/9/2023 City Council, City of San Diego 23-01 through 23-06 8/9/2023 City Manager, City of Carlsbad 23-01 through 23-06, 23-08 8/9/2023 City Manager, City of Chula Vista 23-01 through 23-06, 23-09 8/9/2023 City Manager, City of Coronado 23-01 through 23-06 8/9/2023 City Manager, City of Del Mar 23-01 through 23-06 8/9/2023 City Manager, City of El Cajon 23-01 through 23-06, 23-09 8/9/2023 City Manager, City of Encinitas 23-01 through 23-06 8/9/2023 City Manager, City of Escondido 23-01 through 23-06, 23-08 8/9/2023 City Manager, City oflmperial Beach 23-01 through 23-06 8/9/2023 16 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) Resnonding Agency Recommendations Date City Manager, City of La Mesa 23-01 through 23-06, 23-09 8/9/2023 City Manager, City of Lemon·Grove 23-0l through 23-06, 23-09 · 8/9/2023 City Manager, City of National City 23-01 through 23-06, 23-09 8/9/2023 City Manager, City of Oceanside 23-01 through 23-06, 23-08 8/9/2023 City Manager, City of Poway 23-01 through 23-06 8/9/2023 City Manager, City of San Marcos 23-01 through 23-06, 23-08 8/9/2023 City Manager, City of Santee 23-01 through 23-06 8/9/2023 City Manager, City of Solana Beach 23-01 through 23-07 8/9/2023 City Manager, City of Vista 23-01 through 23-06, 23-08 8/9/2023 17 2022/2023 SAN DIEGO COUNTY GRAND JURY REPORT (filed May 9, 2023) July 26, 2023 Attachment B ( Cicyof Carlsbad Honorable Michael T. Smyth Presiding Judge San Diego County Superior Court 1100 Union Street San Diego, CA 92101 RE: CITY OF CARLSBAD RESPONSE TO SAN DIEGO COUNTY GRAND JURY REPORT: "HOUSING IN SAN DIEGO COUNTY" Dear Judge Smyth: Pursuant to California Penal Code.sections 933 and 933.05, the following specific responses are submitted to you regarding the 2022-2023 Grand Jury Findings and Recommendations as reflected in Grand Jury Report titled "Housing in San Diego County." Findings 1 and 2 as well as Recommendations 23-07 and 23-09 do not pertain to the City of Carlsbad i:)nd therefore do not require a response. Finding 03 Response Finding 04 Response The following cities did not meet their housing allocations for all income categories: Carlsbad, Chula Vista, Coronado, Del Mar, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, National City, Oceanside, Poway, San Diego, San Marcos, Santee, Solana Beach, and Vista. The City of Carlsbad agrees with this finding, to the extent that it only applies to the City of Carlsbad. It should be noted, however, that the Regional Housing Needs Allocation (RHNA) is a process by which the state requires local jurisdictions to plan for the construction of new homes and the affordability of those homes. The role of the local agency is limited to planning for residential development, not the actual construction of residential units. Delivery of residential units is, with few exceptions, the role of private developers. It is important to note that the City of Carlsbad, through the adoption of a certified Housing Element, met its obligations to state law and demonstrated sufficient planning of housing allocations for e.ach income category for the 5th Housing Element cycle. Additionally, the City of Carlsbad also adopted a Housing Element for the 6th cycle on Ap ril 6, 2021, that was determined to follow all the applicable state laws on July 13, 2021, by the California Department of Housing and Community Development. Even though the city has a limited role in the construction of new units beyond the planning process, the city continues to support the development of affordable housing through programs like its inclusionary housing ordinance. The San Diego region failed to meet its housing allocations for each of the income categories identified by SAN DAG in the Fifth RHNA Cycle. The City of Carlsbad agrees with this finding. Office of the City Manager City of Carlsbad I 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2820 t Honorable Michael T. Smyth July 26, 2023 Page 2 Finding 05 Response Finding 06 Response Recommendation 23-01 Response Recommendation 23-02 Response Specific plans are useful tools in spurring development, including housing development, and have been used by El Cajon and Chula Vista among others. The City of Carlsbad agrees with this finding to the extent that specific plans can provide for predictable, orderly development in a given area. The City of Carlsbad has extensively used Specific Plans and Master Plans in the provision of housing within the city. Unless paired with a separate program for financing or incentivization, however, the specific plan itself may not "spur development" beyond any other code consolidation or streamlining effort. Both transit agencies in San Diego County (NCTD and MTS) have made land available for development and are actively developing projects that include housing, among other uses. The City of Carlsbad agrees with this finding. The City of Carlsbad has consulted with NCTD on land use requirements and process as they make their land available for development at their Carlsbad Village and Poinsettia Coaster Stations. Consider, if they have not done so, using specific plans (as defined by the Governor's Office of Planning and Research) to facilitate the permitting and development of housing, particularly affordable housing, in their jurisdictions. The City of Carlsbad supports this recommendation. The city currently contains eight different privately initiated specific plan areas and will utilize this tool when circumstances prove beneficial. While not a specific plan, the city initiated the preparation of the Village and Barrio Master Plan to provide a roadmap for development within the historic center of the city, which balances new development (subject to the inclusionary housing ordinance) with the retention of naturally occurring affordable housing units and unit types. Several affordable housing projects have been built or are under construction in the Village and Barrio Master Plan area in the past 10 years, including Tavarua, Pacific Wind, and Windsor Pointe which added a total of 187 rent restricted units, including units for low income families, seniors and severely mentally ill individuals experiencing chronic homelessness. Consider working with school districts and community college districts within their jurisdictions to identify developable land for housing owned by districts within their boundaries. The City of Carlsbad supports this recommendation and is open to working with any interested school districts and community college districts. To date, the city has been able to accommodate sufficient capacity for housing units of all income categories without relying on school district properties, but this could become an additional opportunity for future housing cycles. Honora ble Michael T. Smyth July 26, 2023 Page 3 Recommendation 23-03 Response Recommendation 23-04 Response Recommendation 23-05 Response Recommendation 23-06 Response Consider working with local religious institutions within their jurisdictions to identify land developable for housing, particularly affordable housing. The City of Carlsbad supports this recommendation. The city's 6th Cycle Housing Element contains a program laying the groundwork for such partnerships. Program 2.13 Objective J states the city will "[e]valuate the potential to allow for emergency shelter or other temporary housing on properties owned by religious institutions." As required under its certified housing element, staff presented their research and recommendations to the Planning Commission on April 19, 2023, where the Planning Commission received the report for further consideration. While staff's research and recommendations were tailored to emergency shelters and temporary housing, many of the potential opportunities and constraints for establishing t hese housing types on religious institution properties would also apply to other forms of affordable housing. Consider drafting revenue-generating legislation at the jurisdiction level, if feasible and legal e.g., the Seattle Jumpstart Tax. Monies generated by such a tax to fund or assist in funding the construction of housing, particularly affordable housing. The City of Carlsbad does not support this recommendation. Pursuant to Article XIIIC of the California Constitution, all local taxes must be approved by a vote of the electorate and cannot be imposed by local legislative action alone. Consider providing legislative support to re-introducing in the State Legislature SB 1105, or similar legislation, to create a San Diego County agency that could raise revenue for housing. The City of Carlsbad does not support this recommendation. As established by the city's 2023 Legislative Platform, the City of Carlsbad supports efforts to develop financial support for programs which provide affordable housing; however, the city opposes the framework outlined in SB 1105 due to concerns that: a) individual cities, such as Carlsbad, are not guaranteed direct representat ion in the new agency, and b) while the new agency would be empowered to impose taxes and fees on Carlsbad residents and businesses, there is ho guarantee that those funds would be used to produce affordable housing in Carlsbad. Consider providing legislative support to SB 4, which is currently before the legislature. This bill makes it easier to provide affordable housing on land owned by religious institutions. The City of Carlsbad does not support this recommendation. A guiding principle of the city's adopted Legislative Platform is the maintenance of local control, including a policy of opposing measures that seek to preempt local land use authority. SB4 goes against this guiding principle. As addressed in the city's responses to Recommendations 23-02 and 23-03, the City of Carlsbad will consider working with local school districts and has already investigated housing opportunities on land owned by religious institutions. While the City of Carlsbad supports SB 4's intention Honorable Michael T. Smyth July 26, 2023 Page 4 Recommendation 23-08 Response of reducing barriers to affordable housing, the city is dedicated to ensuring that it maintains regt:1latory authority over zoning and redevelopment decisions. Continue working with the North County Transit to identify land suitable for development of housing, particularly affordable housing, at major transit stops including Coaster and Sprinter train and bus lines as appropriate. The City of Carlsbad supports this recommendation. The city has already incorporated this recommendation as one of the strategies in its 6th Cycle Housing Element. As identified within the element's potential housing sites, Sites 14 and 17 are owned by North County Transit District (NCTD) and are adjacent to the LOSSAN rail corridor and the Carlsbad Village and Poinsettia rail stations, respectively. NCTD is responsible for initiating and approving site development and has already started the request for proposal process. NCTD anticipates that development could begin as early as 2025. In addition, housing Site 2 is at the location of a regional bus hub operated by NCTD, although this site is located within the city-owned parking lot of the Shoppes at Carlsbad . Thank you for your consideration. Please reach out if you have additional questions or would like to discuss th ·ty's response 2023 Grand Jury Report on Housing in the San Diego County region as described in this I ter Scott Chadwick City Manager