I have have been commuting on my Motobecane cafe express from bikesdirect for alittle while now, I guess you could call it a hybrid, has the mounting holes for racks/baskets/panniers/fenders etc has flat bars and a upright riding position internal gearing(mines the 8 speed),wide tires blah blah blah they also make a steel framed bike with similar components,

stock seat/tires are crap but even with a new seat/tires/panniers it would still be in the bottom of your price range, as far as winter riding idk there is no winter in CA

overall though I would highly recommend it