CITY COUNCIL AGENDA
REGULAR MEETING
CITY OF HALF MOON BAY
TUESDAY, FEBRUARY 1, 2022
REMOTE PARTICIPATION (SEE NEXT PAGE) Debbie Ruddock, Mayor Deborah Penrose, Vice Mayor
Robert Brownstone, Councilmember
Joaquin Jimenez, Councilmember
Harvey Rarback, Councilmember
7:00 PM
This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the Agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the Agenda and will have a maximum of three minutes to discuss their item.
Those wishing to speak on a Public Hearing matter will be called forward at the appropriate time during the Public Hearing consideration.
Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk.
Copies of written documentation relating to each item of business on the Agenda are on file in the Office of the City Clerk at City Hall and the Half Moon Bay Library where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726- 8271.
In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). http://hmbcity.com/
1 SPECIAL REMOTE PARTICIPATION PROTOCOLS
This meeting will be held entirely by teleconference. All Councilmembers and staff will only participate via the Zoom platform using the process described below. The meeting is being conducted pursuant to recent amendments to the teleconference rules required by the Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when local officials have recommended social distancing (AB 361). The purpose of AB 361 is to provide the safest environment for the public, elected officials, and staff while allowing for continued operation of the government and public participation during the COVID‐19 pandemic.
This meeting will be conducted via Zoom Webinar and live Spanish interpretation will be available within the Zoom platform. Members of the public are welcome to login into the webinar as Attendees. During any public comment portions, attendees may use the “raise your hand” feature and will be called upon and unmuted when it is their turn to speak. The meeting will also be streamed on Channel 27, on pacificcoast.tv, and on Facebook at www.facebook.com/cityofhalfmoonbay. Please click to join the webinar: https://us06web.zoom.us/j/99588947925 or join by phone at 669-900-9128, using Webinar ID 995-8894-7925. If joining by phone, use *9 to raise your hand, *6 to mute and unmute.
CALL TO ORDER / ROLL CALL
PUBLIC FORUM
PROCLAMATIONS AND PRESENTATIONS
NATIONAL POETRY MONTH PROCLAMATION
MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE
REPORT OUT FROM RECENT CLOSED SESSION MEETINGS
CITY MANAGER UPDATES TO COUNCIL
COVID-19 UPDATE
COASTSIDE COMMUTER SURVEY
PLANNING COMMISSIONER VACANCY ANNOUNCEMENT
1. CONSENT CALENDAR
1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES
1.B ORDINANCE AMENDING HALF MOON BAY MUNICIPAL CODE TITLE 15 - SIGN
ORDINANCE - SECOND READING
Staff Recommendation: Waive second reading and adopt an ordinance amending portions of Title 15 of the Half Moon Bay Municipal Code relating to signs and advertising structures.
STAFF REPORT
ORDINANCE
2 1.C AMENDED MAYOR’S LIST OF CITY COUNCIL REPRESENTATIVES AND DESIGNATED ASSIGNMENTS FOR 2022
Staff Recommendation: Accept Mayor Ruddock’s Amended List of City Council Representatives and Designated Assignments for 2022.
STAFF REPORT
ATTACHMENT 1
1.D FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH INTEGRAL CONSULTING, INC. FOR PHASE 2 OF THE MIRAMONTES POINT SEA
LEVEL RISE VULNERABILITY AND FISCAL IMPACT ASSESSMENT
Staff Recommendation: Adopt a resolution authorizing the transfer of $28,500 in unallocated Capital Budget to Capital Improvement Project Number 1002 (Climate Action and Adaptation Plan) and authorizing the City Manager to execute a First Amendment to the Professional Services Agreement with Integral Consulting, Inc. to perform the services identified in Phase 2 of the proposed scope and increasing the not-to-exceed annual amount to $58,500.
STAFF REPORT
RESOLUTION
ATTACHMENT 2
1.E ACCEPTANCE OF AUDITOR’S REPORTS FROM THE FISCAL YEAR 2020-21 AUDIT Staff Recommendation: Accept the Required Communications and Memorandum of Internal Control reports from the fiscal year 2020-21 independent auditor.
STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
1.F TREASURER’S REPORT FOR THE QUARTER ENDING DECEMBER 31, 2021 Staff Recommendation: By motion, accept the Treasurer’s Report for the quarter ending December 31, 2021.
STAFF REPORT
ATTACHMENT 1
3 1.G QUARTERLY FINANCIAL REPORT FOR THE SECOND QUARTER OF FISCAL YEAR 2021-22 Staff Recommendation: Accept the Quarterly Financial Report for the 2 nd Quarter of
Fiscal Year 2021-22
STAFF REPORT
ATTACHMENT 1
2. ORDINANCES AND PUBLIC HEARINGS
2.A BUILDING ELECTRIFICATION ORDINANCE
Staff Recommendation: Conduct a public hearing, waive first reading, and introduce an ordinance adopting a new chapter 14.06 to the Half Moon Bay Municipal Code entitled “Electrification of Buildings.”
STAFF REPORT
ORDINANCE
3. RESOLUTIONS AND STAFF REPORTS
None.
COMMISSION / COMMITTEE UPDATES
CITY COUNCIL REPORTS / FUTURE ITEMS
ADJOURNMENT
4
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Jessica Blair, Communications Director / City Clerk TITLE: ORDINANCE AMENDING HALF MOON BAY MUNICIPAL CODE TITLE 15 – SIGN ORDINANCE – SECOND READING
______________________________________________________________________________ RECOMMENDATION:
Waive second reading and adopt an ordinance amending portions of Title 15 of the Half Moon Bay Municipal Code relating to signs and advertising structures.
FISCAL IMPACT:
There is no fiscal impact associated with the adoption of this ordinance.
STRATEGIC ELEMENT:
This action supports the Inclusive Governance Elements of the Strategic Plan.
DISCUSSION:
On January 19, 2022, the City Council introduced the ordinance following the conduct of a dulynoticed public hearing. As required by law, the ordinance appears for second reading and adoption at a regular meeting more than five days past introduction.
ATTACHMENT:
Ordinance amending portions of Title 15 of the Half Moon Bay Municipal Code relating to signs and advertising structures
5 1
ORDINANCE NO. C-2022-______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AMENDING TITLE 15 (“SIGNS AND ADVERTISING STRUCTURES”) OF THE HALF MOON BAY MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF HALF MOON BAY DOES ORDAIN AS FOLLOWS:
Section 1. Findings. The City Council of the City of Half Moon Bay hereby amends Sections
15.10.010, 15.30.020, 15.40.030, 15.40.040, 15.40.050, and 15.50.060 of Title 15 (“Signs and Advertising Structures”) of the Half Moon Bay Municipal Code, and adopts Chapter 15.90 (“Message Substitution”) and Chapter 15.100 (“Severability”) (together, “Sign Ordinance Amendment”). The City Council finds and declares as follows:
(a) The City seeks to promote public safety, welfare, and economic vitality and to protect the City’s visual character and scenic resources via appropriate regulation of commercial and noncommercial signage; and
(b) The City wishes to provide flexibility for freedom of expression via signage, and ensure adequate opportunities for all forms of constitutionally protected speech, including but not limited to political signage; and
(c) The City seeks to ensure that its sign code treats noncommercial signage consistently regardless of the content of the sign’s message, consistent with the principles articulated by the United States Supreme Court in Reed v. Town of Gilbert, Ariz. (2015) 576 U.S. 155; and
(d) The City seeks to ensure that its regulations include clear standards governing the size, quantity, and display time of temporary signs, and that such standards are uniform across sign types to the extent practicable and consistent with other regulatory objectives; and
(e) The Sign Ordinance Amendment will further these goals by updating regulations governing signage that does not require a permit to remove content-based distinctions between types of noncommercial signs, and standardizing the limits on the size, quantity, and display period for such signs; and
(f) The Sign Ordinance Amendment will ensure adequate opportunities for constitutionally protected noncommercial speech regardless of content by adopting a provision authorizing substitution of noncommercial messages on all sign types authorized under the code.
(g) The Sign Ordinance Amendment will continue to allow the same number of signs in the same locations, sizes, materials, and illumination such that signs permitted under the amended ordinance will continue to comply with the visual resource protection requirements of the certificated Local Coastal Program. 6 2
Section 2. Amendments. The following sections of the Municipal Code are amended as specified below and in Attachment A. Attachment A generally shows additions with underlined text and deletions with strike out text.
Municipal Code
Provision
Action
Section 15.10.010 Amendments as shown in Attachment A
Section 15.30.020 Amendments as shown in Attachment A
Section 15.40.030 Amendments as shown in Attachment A
Section 15.40.040 Amendments as shown in Attachment A
Section 15.40.050 Amendments as shown in Attachment A
Section 15.50.060 Amendments as shown in Attachment A
Chapter 15.90 Adopt new chapter as shown in Attachment A Chapter 15.100 Adopt new chapter as shown in Attachment A Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council herby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4. CEQA. The City Council finds that adoption of this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) under the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378), because it has no potential to result in physical change to the environment. Moreover, the City Council finds that even if adoption of this Ordinance were otherwise subject to CEQA, it would be exempt pursuant to CEQA Guidelines Section 15061(b)(3) (common sense exemption).
Section 5. Publication. The City Clerk of the City of Half Moon Bay is hereby directed to publish this Ordinance pursuant to Government Code section 36933.
Section 6. Effective date. This Ordinance shall take effect and be in force on the thirtieth (30th) day from and after its final passage.
INTRODUCED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the 19th of January, 2022.
7 3
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the 1
st day of February, 2022, by the following vote:
Ayes, Councilmembers:
Noes, Councilmembers:
Absent, Councilmembers:
Abstain, Councilmembers:
ATTEST: APPROVED:
________________________________ ______________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor
8 4
ATTACHMENT A
Title 15
SIGNS AND ADVERTISING STRUCTURES*
Chapters:
15.10 Definitions
15.20 General Provisions
15.30 Exempt and Prohibited Signs
15.40 Permits, Approvals, Abatement and Administration
15.50 Signs Requiring a Permit
15.60 General Sign Requirements
15.70 Special Sign Programs
15.80 Nonconforming Signs
15.90 Message Substitution
15.100 Severability
* Code reviser’s note: Section 9 of Ord. C-2013-04 renumbers and reorganizes Title 15. Prior legislative history has been retained.
9 Chapter 15.10
DEFINITIONS
Sections:
15.10.010 Definitions.
15.10.010 Definitions.
“Abandoned sign” means a sign which no longer directs, advertises or identifies a legal business establishment, product or activity on the premises where such sign is displayed. “Advertising” means that copy on a sign describing products or services being offered. “Architectural projection” means a marquee, porch, canopy or other similar projection. “Awning sign” means any sign copy or logo attached to or painted on an awning. “Banner, flag, or pennant” means any cloth, bunting, plastic, paper, or similar nonrigid material used for advertising purposes attached to any structure, staff, pole, line, framing, or vehicle, not including official flags of the United States, the state of California and other states of the nation, counties, municipalities, official flags of foreign nations, and nationally or internationally recognized institutions and organizations.
“Building identification sign” means a sign that identifies the name of the building. “Business day” means a day that City Hall is open for business. Typically, Monday through Friday excluding national and city holidays.
“Business frontage” means the lineal frontage of a business that abuts a public street right-ofway or other area accessible to the public such as business frontage on a parking lot or parking structure generally open to the public, or on a publicly traveled waterway such as the Pacific Ocean.
“Business identification sign” means a sign that serves to identify only the name, address, and/or general use of the premises upon which it is located. “Changeable copy sign” means a sign designed to allow manual, non-electronic changing of copy (i.e. the text or content of the sign).
“Commercial message” means a message on a sign, or portion of a sign, that promotes goods and services, informs or proposes an economic transaction, or primarily concerns the economic interests of the sign sponsor and/or audience.
“Community event sign” means a temporary sign for a temporary event sponsored or approved by the City, including signs for a carnival or fair, for a farmer’s market, or for an athletic event or competition, but not including those signs which are otherwise differentiated in this chapter. 10 “Construction sign” means a sign that identifies the name of the contractor, builder, architect, etc., for a project that is under development.
“Days“ refers to calendar days unless otherwise indicated. If a deadline falls on a weekend or city holiday, it shall be extended to the next working day. “Directional sign” means an on-site sign that is designed and erected solely for the purposes of directing vehicular and/or pedestrian traffic within a project. “Directory sign” means a sign listing the tenants of a multiple tenant center. “Freestanding sign” means a sign that is supported by a base structure that rests on the ground and is not supported by or attached to a building, including monument, pole and pylon signs. “Future tenant sign” means a temporary sign that identifies the name(s) of future businesses, organizations, and/or entities that will occupy a site or structure. “Height of sign” means the vertical distance from the uppermost part of a sign to the highest elevation of the finished grade immediately below and adjoining the sign. “Historic resource sign” means a sign identifying a historic resource. For example, the sign may include background information, including relevant dates, names of individuals associated with the resource, and the general history of the resource.
“Illegal sign” means:
1. Any sign originally erected or installed without first complying with all structural, locational, design, building and electrical regulations in effect at the time of its construction or installation;
2. Any commercial sign that is not maintained, or is not used to identify or advertise an ongoing business, occupancy, product, good or service available on the site of the sign;
3. Any unsafe sign;
4. Any legal nonconforming sign that has not been removed following the expiration of any applicable amortization period provided in this code; and
5. Any sign that is in violation of the provisions of this title. “Install” refers to the erection, placement, location, relocation, converse, or other action of putting a sign up, replacing an existing sign, or modifying an existing sign. “Lineal street frontage” means the lineal distance that a parcel or parcels occupied by a business or businesses abuts a public street right-of-way. This lineal distance will be used to calculate sign area for multiple tenant center signs and to determine additional business identification and/or multiple tenant center signs.
“Marquee sign” means a sign that is attached to a marquee or architectural projection. 11 “Monument sign” means a permanent freestanding sign where the entire supporting base of the sign is affixed to the ground and is not attached to or supported by a building. “Multiple tenant center” means a development consisting of two or more separate uses or tenancies that share either the same parcel, set of parcels or structure and use common access and parking facilities.
“Noncommercial message” means any message that is not commercial, including but not limited to commentary or advocacy on topics of public debate and concern. “Off-site sign” means a sign that identifies, advertises or attracts attention to a business, product, service, event or activity sold, existing or offered at a different location outside the property where the sign is displayed. A sign is not considered “off-site” if it is located within the same multiple tenant center as the business, product, service, event, or activity to which it refers. The off-site/on-site distinction applies only to commercial messages. “On-site sign” means a sign that identifies, advertises, or attracts attention to a business, product, service, event or activity sold, existing or offered upon the same property as the sign.
A sign is considered “on-site” if it is located within the same multiple tenant center as the business, product, service, event, or activity to which it refers. The off-site/on-site distinction applies only to commercial messages.
“Permanent sign” means a sign constructed of durable materials and intended to exist for the duration of time that the use or occupant is located on the premises. “Pole sign” means a permanent freestanding sign that is supported by one upright, brace, pole, or similar structural element and is not attached to or supported by a building.
Primary Business Frontage. Where a business has more than one business frontage, the longest single frontage may be used to calculate the maximum allowable sign area. The cumulative total of frontages shall not apply.
“Projecting sign” means a sign, other than a wall sign, that is suspended from or supported by a structure attached to a building and projecting or is placed outward from the building. This sign type includes signs that hang from marquees or architectural projections. “Promotional sign” means a sign erected on a temporary basis to promote the sale of new products, new management, new hours of operation, new service, grand opening, or to promote a special sale.
“Pylon sign” means a permanent freestanding sign that is supported by two or more uprights, braces, poles, or similar structural elements and is not attached to or supported by a building. “Real estate sign” means a sign indicating that a property or any portion thereof is available for sale, lease, or rent, or directing people to such a property, as authorized by Civil Code section 713.
12 “Rider sign” means an additional smaller sign that is attached to the primary sign. “Roof sign” means a sign that is mounted on the roof of a building or which is wholly dependent upon a building for support and which projects above the highest point of a building with a flat roof, the eave line of a building with gambrel, gable, or hip roof, or the deck line of a building with a mansard roof.
“Sign” means a device, structure, or fixture which incorporates graphics, symbols, or written text that is visible from the nearest public frontage and is intended to communicate information or ideas.
“Temporary sign” means a sign intended to be displayed for a limited period of time and capable of being viewed from a public frontage.
“Three-dimensional signs” means signs that have a depth or relief on their surface greater than six inches.
“Wall sign” means a sign attached to or erected against a wall of a building; any sign affixed in such a way that its exposed face is parallel to the plane of the building. “Wayfinding sign” means a sign that is part of a city-sponsored and coordinated program to provide directions to business areas, attractions, facilities, and other locations. “Window sign” means a sign affixed to the interior face of a window or located within five feet of a window and visible from the street, sidewalk or other public right-of-way. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.12.010). 13 Chapter 15.20
GENERAL PROVISIONS
Sections:
15.20.010 Intent and purpose.
15.20.020 Compliance required.
15.20.010 Intent and purpose.
This title establishes the regulation of signs as a way to:
A. Promote economic sustainability and vitality without detracting from the scenic and visual qualities of the city’s resource areas; and
B. Promote signage that fully complies with the applicable policies of the city’s local coastal program and the visual resource protection standards of the Implementation Plan; and C. Ensure that signage associated with historic buildings, structures, sites, objects and districts is architecturally and aesthetically compatible with such community assets; D. Regulate the size, scale, visibility and exposure of signage located within residential areas to ensure that such signage is appropriate and compatible with neighborhood aesthetics; and E. Maintain and enhance the overall property values in the city and the continuity of the streetscape by reducing visual clutter resulting from such elements as oversized signs, excessive illumination and unregulated temporary signs; and
F. Improve traffic safety throughout the community by promoting signage that does not distract motorists, obstruct visibility along roadways, bicycle routes or pedestrian facilities, or otherwise impede efficient traffic circulation; and
G. Safeguard and protect the public health, safety and welfare through appropriate prohibitions, regulations, and controls on the design, location and maintenance of signage. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.01.010).
15.20.020 Compliance required.
No sign shall be installed on any real property situated in the city without approval in accordance with this title, unless exempt. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh.
A(part)), 2010. Formerly 15.01.020).
14 Chapter 15.30
EXEMPT AND PROHIBITED SIGNS
Sections:
15.30.010 Exempt signs.
15.30.020 Prohibited signs.
15.30.010 Exempt signs.
A sign permit shall not be required for the following signs:
A. Signs that are within buildings and are not visible from any point on the boundary of the property;
B. Signs that are within an interior space, including an interior arcade, courtyard, mall, or similar area, and that are not visible from an alley, parking lot, or street; C. Signs or notices installed in compliance with a government function or required by a law, ordinance, or government regulation, including signs installed by a public utility (government/civic signs);
D. Signs on licensed commercial vehicles, including trailers; provided, that the vehicles/trailers shall not be used as parked/stationary outdoor display signs; E. Flags of a nation, the state of California, other states of the nation, and municipalities displayed in a manner consistent with the flag code (36 U.S.C.A. Section 173 et seq.); F. Signs manufactured as a standard integral part of a mass-produced product accessory to a commercial or public or semi-public use, including automated teller machines, gasoline pumps, and telephone booths. The signs may contain the company’s name and/or logo only. No advertising message shall be provided. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh.
A(part)), 2010. Formerly 15.02.010).
15.30.020 Prohibited signs.
The signage listed in this section is inconsistent with the purposes and standards of this title and as such is prohibited in all zoning districts. Unless otherwise provided for in this title, the following signs are prohibited:
A. Abandoned signs;
B. Animated, moving, rotating and other similar signs;
C. Inflatable signs, pennants, streamers, and permanent banners; D. Excessive use of permanent flags;
E. Unauthorized temporary or permanent signs;
15 F. Signs emitting audible sounds, odors, or visible matter. Menu/order board signs may emit sounds, but only as part of their primary function;
G. Off-site commercial signs, including billboards, but excluding (1) advertisements mounted on public bus shelters, which are permitted if approved by the transit agency responsible for the shelter, and (2) real estate open house signs permitted under section 15.40.050 (B)(4)(c); H. Signs located on public property or within the public right-of-way, including political signs and temporary portable signs, except as specifically authorized by this title; I. Any sign that utilizes visible guy wires, angle irons and iron frame structures, unless construction is otherwise impossible;
J. Signs which imitate or resemble official traffic warning devices, traffic signs, or lights of a road or emergency vehicle, or that by color, location, size, content, or lighting may confuse or disorient vehicular or pedestrian traffic, excluding on-site direction signs as allowed under Sections 15.50.010 and 15.50.020;
K. Signs which are located on or project over the roof of a building or structure; and L. Signs which bear or contain statements, words or pictures of an obscene, pornographic, or sexually explicit character. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.02.020).
16 Chapter 15.40
PERMITS, APPROVALS, ABATEMENT AND ADMINISTRATION
Sections:
15.40.010 Permit required.
15.40.020 Review for completion.
15.40.030 Approval authority.
15.40.040 Action on sign permit.
15.40.050 No permit required.
15.40.060 Permit processing, issuance and revocation.
15.40.070 Conflicts and lack of specificity.
15.40.010 Permit required.
Except as otherwise provided in this title, it shall be unlawful for any person to install any sign within the city limits, or cause the same to be done, without first obtaining a sign permit for each such sign from the community development director, as required by this chapter. (Ord. C2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §1(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.03.010).
15.40.020 Review for completion.
Within fourteen days of receiving an application for a sign permit, the community development director or the director’s designee shall review it for completeness. If the director finds that it is complete, the application shall then be processed. If the director finds that it is incomplete, the director shall, within such fourteen-day period, send to the applicant a notice of the specific ways in which the application is deficient, with appropriate references to the applicable sections of this title. (Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9- 11 §1(part), 2011: Ord. C-3-10 §1(Exh. A)(part)), 2010. Formerly 15.03.020).
15.40.030 Approval authority.
A. Community Development Director Administrative Approval. Upon submittal of an application, the following signs may be approved by the community development director, who may consider the recommendation of any city council appointed advisory committee or commission in performing this function: identification signs up to a maximum area of twenty square feet per any one sign and a cumulative total of forty square feet not counting exempt signs; signs that are part of an approved special sign program; temporary signs in accordance with the provisions of Section 15.40.050(B); directory signs; bulletin boards; menu boxes; accessory signs; including directional and parking signs; and minor exceptions to the previously identified signs.
1. The community development director or designee shall approve or deny an application within twenty days of receipt of the completed application. 17 2. In order to be approved, these signs must satisfy the purpose, objectives, and standards described in this chapter.
3. The community development director only may grant exceptions to the type and location of a sign and only if the following criteria are satisfied:
a. There is no increase in overall height from the standards permitted in this title. b. There is no increase in overall square footage from the standards permitted in this title.
c. There is no increase in the number of signs permitted in this title. d. The exception does not create any unsafe conditions for motorized or nonmotorized vehicles or pedestrians.
e. The exception does not conflict with the local coastal program. f. The exception complies with Chapter 15.20 (General Provisions).
4. The community development director shall periodically report to the planning commission on the signs that have been approved through the administrative process.
B. Architectural Review and Approval. Upon submittal of an application, all signs that are not exempt from the permit requirements of this title or are not eligible for administrative approval by the community development director may be approved by the planning commission, who may consider the recommendation of any city council appointed advisory committee or commission in performing this function. This includes, but is not limited to: all identification signs that exceed twenty square feet; all identification signs where the total area of identification signs for the site exceeds forty square feet, not including exempt signs; all murals; all special sign programs; all wayfinding signs; and signs which, in the opinion of the community development director, require non-minor exceptions to the standards described in this title.
The planning commission may grant exceptions only to the number, size, location and design of signs. The following criteria must be satisfied to grant the exception:
1. Additional business signs may be permitted in unusual circumstances such as, but not limited to, a business that has entrances on three different public rights-of-way.
2. Signs shall clearly identify the business entrance. Signs shall be pedestrian-oriented except for gas stations, motels and other businesses that are predominantly vehicleoriented businesses. Clutter from business signs on street frontages shall be avoided. Sign clutter along street frontages from multiple businesses within a courtyard or building shall be avoided.
3. Any exceptions to design standards shall retain compatibility with the design, color and scale of the building.
18 4. The exception does not create any unsafe conditions for motorized or nonmotorized vehicles or pedestrians.
5. The exception does not conflict with the local coastal program.
6. The exception complies with Chapter 15.20 (General Provisions).
C. Any appeal of the decision of the community development director or the planning commission shall be made in accordance with Chapter 1.25. (Ord. C-2019-03 §2(Exh. A)(part), 2019; Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §1(part), 2011:
Ord. C-3-10 §1(Exh. A)(part), 2010. Formerly 15.03.030).
15.40.040 Action on sign permit.
A. Within seven days of determining that an application for a temporary sign permit is complete, except for community event signs, the community development director shall either issue a temporary sign permit if the sign conforms to this title or deny the application.
B. Within thirty days of determining that an application for a sign permit that may be approved by the community development director is complete, other than a temporary sign permit described in Section 15.40.040.A, the director shall either approve, conditionally approve, or deny a sign permit based on the standards and regulations set forth in this title.
C. Within thirty days of determining that an application for a sign permit that may be approved by the planning commission is complete, the application shall be scheduled for the next public meeting of the planning commission. Such sign application shall be continued for no more than one meeting of the planning commission, except with the consent of the applicant for the sign permit. Alternately, the community development director may refer the application to the next public meeting of a city council appointed advisory committee or commission, which may consider the signage at no more than two meetings, following which the application shall be scheduled for the next public meeting of the planning commission. (Ord. C-2019-03 §2(Exh. A)(part), 2019: Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §1(part), 2011: Ord. C-3-10 §1(Exh. A)(part), 2010. Formerly
15.03.040).
15.40.050 No permit required.
Permits are not required for the following types of signs:
A. Permanent Signs Allowed Without a Permit. Permanent signs allowed without a permit shall comply with the provisions that regulate sign type, placement, location and other standards identified in Chapter 15.60 (General Sign Requirements). Permanent signs allowed without a permit shall not be illuminated and shall be no more than six feet in height if freestanding or affixed to a building or other structure. Such signs shall not be subject to the area limits specified in Section 15.50.010(A)(2) or Section 15.50.020(b). The following permanent signs are allowed without a permit:
1. Small permanent signs (including but not limited to credit cards accepted, trade affiliations, neighborhood watch, hours of operation, private property, no trespassing, keep 19 off grass, beware of dog, etc.) up to a maximum area of one and one-half square feet per sign, up to a total of four signs per lot or business.
2. Wall-mounted signs on a building (including but not limited to historic resource signs), up to two square feet per sign and up to two signs per building.
3. Existing signs with a change of content that does not alter the size, location, or illumination of a sign, is consistent with any font/copy size requirements pursuant to this title, and does not contain off-site advertising.
B. Temporary Signs Allowed Without a Permit. Temporary signs allowed without a permit shall comply with the provisions that regulate sign type, placement, location and other standards identified in Chapter 15.60 (General Sign Requirements). However temporary signs allowed without a permit shall not be illuminated and shall be no more than six feet in height whether freestanding or affixed to a building or other structure. Signs installed pursuant to this section shall not be placed on public property or in the public right-of-way. The following temporary signs are allowed without a permit:
1. Temporary signs up to four square feet in area containing noncommercial messages may be displayed for a period of no more than ninety days in one calendar year. Such signs may be installed on private property with the property owner’s consent.
2. Temporary signs up to twenty square feet in area containing noncommercial messages may be displayed for a period of no more than ninety days in one calendar year. No more than two such signs may be displayed on one lot. Such signs may be installed on private property with the property owner’s consent.
3. Temporary signs may be displayed on business premises in commercial districts as follows:
a. Temporary window signs up to twenty-five percent of the area of the window surface.
b. One temporary banner sign up to twenty square feet in area and not more than six feet in height may be erected per business frontage, up to a total of two such signs maximum on businesses with two or more frontages..
c. Temporary signs authorized under this provision may be displayed for no more than sixty days in one calendar year.
4. Temporary real estate signs authorized by Civil Code section 713 (e.g., for sale or for lease signs ) for a property or unit that is being actively marketed for sale or lease are allowed as follows:
a. Real estate signs for a residence may be no more than six square feet in area per sign. One sign may be installed per public frontage. The signs shall be removed within 15 days after sale or lease of the unit or building, or after the unit or building is taken off 20 the market. Up to two rider signs up to one square foot each may be attached to the real estate sign.
b. Real estate signs for a nonresidential property may be no more than twenty square feet in area per sign. One sign may be installed per public frontage. The signs shall be removed within 15 days after sale or lease of the unit or building, or after the unit or building is taken off the market.
c. Open house signs, including A-frame signs, may be displayed during an open house. These signs shall be removed daily at the close of the open house and shall not be displayed overnight. A maximum of six such signs may be displayed per open house, each with a maximum sign area of two square feet per sign.
5. Temporary construction signs (i.e., signs identifying a builder or contractor) may be displayed as follows:
a. Construction signs may only be displayed on a property that is under construction, and only while construction is ongoing. The signs shall be removed upon completion of construction.
b. Construction signs for a residence may be no more than six square feet in area per sign. One sign may be installed per public frontage. c. Construction signs for a nonresidential property may be no more than twenty square feet in area per sign. One sign may be installed per public frontage.
15.40.060 Permit processing, issuance and revocation.
Applications for sign permits shall be made on forms provided by the community development director.
A. The community development director of the city, or the director’s designee, shall issue a permit for the erection, alteration, or relocation of a sign within the city when an application therefor has been previously made and the sign has been reviewed by the appropriate approval authority as identified in Sections 15.40.020 and 15.40.030, and has been determined to comply with all appropriate laws and regulations of the city.
B. Every permit issued under the provisions of this chapter shall expire by limitation and become null and void if the work authorized by such permit is not commenced within sixty days from the date of such permit, or if the work authorized by such permit is suspended or abandoned for a period of sixty days or more. An extension for an additional thirty days may be approved by the community development director where circumstances warrant such extension. If a permit has become null and void, a new permit shall be obtained before installation can commence or resume and the fee shall be one-half the amount required for a new permit for such work, provided no changes have been made or will be made from the approved plans and specifications for such work. (Ord. C-2015-04 §1(part), 2015; Ord. C-2013- 04 §9(part), 2013; Ord. C-9-11 §1(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly
15.03.060).
21 15.40.070 Conflicts and lack of specificity.
A. When there is a conflict with two or more sections of this title, the approval authority may make a determination as to which section is more appropriate for the specific site and sign type.
B. If a type of sign is proposed that is not listed in this title, the approval authority shall use standards for the type of sign that most resembles the sign for which the application is made. (Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §1(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.03.070).
22 Chapter 15.50
SIGNS REQUIRING A PERMIT
Sections:
15.50.005 Purpose.
15.50.010 Identification signs.
15.50.020 Multiple tenant center signs.
15.50.030 Accessory signs.
15.50.040 Wayfinding signs.
15.50.050 Temporary signs.
15.50.060 Murals.
15.50.005 Purpose.
This chapter identifies the amount of sign area allowed for businesses and other uses and provides standards for business identification signs, multiple tenant center signs, accessory signs, wayfinding signs, temporary signs, residential signs, and open space/urban reserve signs.
Signs erected pursuant to this chapter must be consistent with location, measurement, illumination, maintenance and other requirements identified in Chapter 15.60. (Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly
15.05.005).
15.50.010 Identification signs.
An identification sign identifies the name of a specific business, organization or entity.
A. Business identification signs consistent with the following standards are allowed for business uses in the commercial, industrial, and agricultural zoning districts and in areas designated for nonresidential uses within a planned unit development zoning district.
1. Number of Signs. All businesses may have at least one sign. Businesses may have one additional sign per business frontage. Where businesses have a lineal street frontage in excess of three hundred feet, one additional sign is allowed for every three hundred feet of lineal street frontage in excess of three hundred feet.
2. Sign Area.
a. A business may have up to one and one-half square feet of sign area per one lineal foot of primary business frontage, up to:
i. Eighty square feet of sign area for freestanding businesses, except if a business is adjacent to a highway or if a business is in a multiple tenant center; or ii. One hundred square feet of sign area if a freestanding business is adjacent to a highway and is not in a multiple tenant center; or
23 iii. Seventy square feet of sign area for each business in a multiple tenant center. If more than one business occupies a single storefront, the combination of identification signage for businesses within that single storefront shall not exceed seventy square feet. If one business occupies more than one storefront, identification signage for that business shall not exceed seventy square feet. iv. Buildings in excess of five thousand square feet with a minimum of one hundred lineal feet of street-level frontage are allowed up to one hundred twenty square feet of sign area.
b. Where a business has less than five lineal feet of primary business frontage, it may have up to seven and one-half square feet of sign area.
3. Types of Signs. The business identification signs shall be limited to sign types identified in Table 15.50-1. Businesses in a multiple tenant center shall not have monument, pylon or freestanding signs as the individual business identification sign, except as allowed in Section
15.50.020.
4. Illumination. Business identification signs may be illuminated as identified in Section
15.60.030(B), subject to the criteria identified in Section 15.60.030, except as provided in the downtown area as described in this section.
5. Downtown. Signs in the downtown area, which is the area shown in Exhibit 1 of the Half Moon Bay Downtown Specific Plan (Figure 15.50-1), shall conform with the following standards:
a. Signs shall be scaled and oriented to the pedestrian level; b. Signs shall be designed and constructed with a high level of craftsmanship and detail that complements the architectural features, scale and finish of the building; c. Signs shall be designed to complement the diversity and eclecticism of the downtown and shall include any two of the following six elements:
i. The most prominent lettering element on a sign, such as the business’s name, uses a serif or script font.
ii. The sign includes a frame, background, or lettering in natural wood, stone or other durable high-quality material that is natural in appearance. iii. The sign includes a frame, background, or lettering in wrought iron, brass, silver or copper in appearance.
iv. The sign has raised lettering or a raised border such that the sign is not onedimensional in appearance. v. The sign is projecting or a hanging sign and is attached to a decorative mounting bracket.
24 vi. The sign is a post and panel freestanding sign with decorative supports (e.g., not an unpainted wood or metal pole) that are wrought iron, wood or other similar durable high-quality material;
Figure 15.50-1--Half Moon Bay Downtown Specific Plan Area 25 TABLE 15.50-1: BUSINESS IDENTIFICATION SIGNS--PERMANENT Sign Type Maximum Area per Sign Maximum Height Other Requirements Building Signs
Awning Sign Downtown: 6 sq. ft.
Other Areas: 18 sq. ft.
- Lettering shall be allowed on awning valances only, shall not exceed 8 inches in height, and shall be contained in a single line. Logos, symbols, and graphics that do not
include text may be allowed on the shed (slope) portion of an awning. Awning signs may not be backlit.
Marquee Sign 100 sq. ft. -
Projecting Sign Multiple Tenants: 5 sq. ft.
Downtown: 16 sq. ft.
Other Areas: 20 sq. ft.
1 story: Fascia
2 or more stories:
Below the window sills
of the second story
Projecting signs in multiple tenant centers are limited to five square feet or less, unless the projecting sign is the center identification sign and not an individual business identification sign. Projecting signs that overhang a public right-of-way or pedestrian access way shall not be less than 8 feet above the finished grade.
Wall1 80 sq. ft. Roofline Only one wall sign allowed per business per business frontage. The sign shall not be wider than 70 percent of the building frontage on which it is placed and shall not cover more than 25 percent of the building area upon which it is placed.
Window Sign Up to 25 percent of any
continuous window area
Top of window Identical signs evenly placed in multiple windows along a business frontage will be considered a single sign.
Freestanding Signs
Monument or
Pole Sign2
100 sq. ft. Highway: 20 ft.
Other: 10 ft.
One monument sign per business frontage, up to two
monument signs.2 Freestanding signs up to 20 ft. high are 26 Sign Type Maximum Area per Sign Maximum Height Other Requirements allowed for business uses adjacent a state or federal
highway.
Planter Sign 4.5 sq. ft. (up to 18 inches by
36 inches)
Up to 3 ft. Planter signs are limited to the downtown and may only be installed within tree wells on the public sidewalk. Planter signs are encouraged to have uniform sizes and frames. A planter sign may not extend outside of the tree well and shall be no less than 12 inches above the elevation of the sidewalk. Planter signs may not be illuminated.
1 Buildings in excess of 5,000 square feet with a minimum of 100 feet of lineal street frontage are allowed up to 120 square feet of sign area.
2 Where businesses have a lineal street frontage in excess of 300 feet, one additional monument sign is allowed for every 300 feet of lineal street frontage in excess of 300 feet.
27 d. Illumination of signs in the downtown shall be limited to external indirect, halo and reflective illumination as described under Section 15.60.030(B). Window signs may be permitted to have neon illumination;
e. In order to preserve the integrity of the buildings in the downtown area, signs affixed to a building shall have a mounting mechanism that allows the sign to be changed without removing the mounting materials from the building.
6. Multiple Tenant Centers. If a special sign program pursuant to Chapter 15.70 is adopted, the adopted sign program shall apply in lieu of this section. a. Uniform Treatment. A uniform treatment of sign type, colors, materials, design and illumination is required for individual businesses within multiple tenant centers.
When new signs are proposed for existing centers with multiple tenants and multiple signs, such signs shall reflect, where possible, the general sign type, colors, materials, design and illumination that is prominent in the center. b. Allowable Sign Area. The allowable sign area for a single multiple tenant center under single ownership may be distributed at the discretion of the owner upon approval of the city; however, in no event shall the combined sign area for all tenants exceed the total allowable sign area for the center.
B. The standards identified in Table 15.50-2 apply to identification signs for businesses or organizations in the open space and urban reserve zoning districts.
TABLE 15.50-2: OPEN SPACE USES--PERMANENT IDENTIFICATION SIGNS Sign Type Number of
Signs
Maximum
Area
Maximum
Height
Other
Requirements
Business Identification Sign:
Wall Sign or Monument Sign
1 per
business
frontage
20 sq. ft.
per sign
10 ft. No illumination
C. The following standards apply to identification signage for residential uses, including home occupations and multifamily development.
TABLE 15.50-3: RESIDENTIAL USES--PERMANENT IDENTIFICATION SIGNS Sign Type Number of Signs Maximum Area Maximum Height
Name and Address Sign:
Wall Sign
1 1 sq. ft. 5 ft.
28 Sign Type Number of Signs Maximum Area Maximum Height Multifamily Sign:
Projecting Sign, Wall Sign,
or Monument Sign
1 per business
frontage, up to 2 signs
maximum
8 sq. ft. per sign On building: First floor
Monument: 5 ft.
(Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.05.010).
15.50.020 Multiple tenant center signs.
A multiple tenant center is a development consisting of two or more separate uses or tenancies that share either the same parcel, set of parcels or structures, and use common access and parking facilities. The following standards identify the number of signs, sign area, and types of signs allowed for multiple tenant centers. These signs are in addition to the business identification signs for individual uses within the center, accessory signs, temporary signs, and wayfinding signs allowed under this title.
A. Number of Signs. A multiple tenant center may have one identification sign and one directory sign per public frontage. Where a multiple tenant center has an excess of three hundred feet of lineal street frontage, one additional monument or freestanding sign is allowed for every three hundred feet of lineal street frontage in excess of three hundred feet.
B. Sign Area. A multiple tenant center may have one square foot of sign area per one foot of lineal street frontage, up to a maximum of one hundred square feet per multiple tenant center.
This sign area is in addition to the sign area allowed per individual business as set forth in Section 15.50.010.
C. Types of Signs. A multiple tenant center may have identification signs and directory signs as described in Table 15.50-4.
TABLE 15.50-4: MULTIPLE TENANT CENTER SIGNS
Sign Type Maximum Area
per Sign
Maximum
Height
Other Requirements
Identification Sign:
Identifies the name
of the center and
may also identify
the primary
anchor(s) and other
stores.
100 sq. ft. 10 ft.
If adjacent to a
federal or state
highway, up to
20 ft. may be
allowed if
necessary for
visibility.
Identification signs shall be
monument signs unless either: 1)
there is not adequate room for a
monument sign, in which case the
sign may be a projecting or wall sign
up to 50 sq. ft., or 2) if the building or
center is adjacent to a highway, the
sign may be a pole or pylon sign up
to 20 ft. in height. Where a multiple
tenant building or center is allowed
29 Sign Type Maximum Area
per Sign
Maximum
Height
Other Requirements
to have more than one monument or
freestanding sign pursuant to
subsection A of this section, such
multiple tenant building or center
may allow an anchor store to have a
monument sign in lieu of an
additional monument sign allowed
for the building or center.
(Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.05.020).
15.50.030 Accessory signs.
The standards identified in Table 15.50-5 apply to permanent accessory signs that do not advertise a business as their primary purpose. These signs do not count toward the permanent sign area allowed under Sections 15.50.020(A) and (B).
30 TABLE 15.50-5: ACCESSORY SIGNS
Sign Type Maximum Area per
Sign
Maximum Height Other Requirements
Nonresidential and Multifamily Uses
Directional Signs 2 sq. ft. 5 ft. On-site directional signs with no advertising solely for guiding traffic, parking, and loading on private property where a use has 10 or more parking spaces. Signs in alleys and service ways shall be wall-mounted; in other locations, signs may be freestanding or wall-mounted. Directional signs may only have reflective illumination.
Decorative Flags,
Banners or
Pennants
4 sq. ft. Building: Roofline
Freestanding: 10
ft.
Permanent flags, banners or pennants without text. One sign allowed per 20 feet of primary business frontage.
Directory Sign 0.75 sq. ft. per
business, up to 8 sq. ft.
total
5 ft. One directory sign allowed per business frontage. Directory signs are limited to multiple tenant centers.
Restaurants
Menu Board Up to 24 sq. ft. of sign
area allowed per sign
6 ft. Two allowed per drive-through restaurant.
Menu boards may be freestanding or mounted to a wall. Menu boards may only have internal illumination or external
illumination consistent with the standards at Section 15.60.030.
Menu Box 1.75 sq. ft. 5 ft. One menu box allowed per restaurant. Menu box shall be mounted to the building wall within five feet of the primary entrance to the restaurant and counts toward the business’s total 31 Sign Type Maximum Area per
Sign
Maximum Height Other Requirements
permanent sign area. Menu boxes may only have external
illumination consistent with the standards at Section 15.60.030.
Civic, Nonprofit and Other Noncommercial Uses
Bulletin Board 0.5 sq. ft. per lineal
foot of primary street
frontage, up to 24 sq.
ft.
5 ft. Bulletin boards may be freestanding or mounted to a wall.
Bulletin boards may only have external illumination consistent with the standards at Section 15.60.030.
(Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.05.030). 32 15.50.040 Wayfinding signs.
Wayfinding signs provide identification of and direction to various destinations in the city.
A. Sign Categories. Wayfinding signs include five sign types:
1. Welcome and Direction Signs. These signs may be located at entrances to the city and major intersections, may feature the names of major destinations, including the downtown district, and will have directional arrows. These signs will be freestanding. These signs may include an area for local nonprofit organizations (e.g., Chamber of Commerce, Rotary Club, etc.). Each organization may have up to one and one-half square feet of sign area.
2. Downtown Directional Signs. These signs may direct visitors from a downtown entrance to public parking and include the names of two or three major destinations.
3. Local Directional Signs. These signs may be located at major intersections in the downtown and include the names of businesses in the street block.
4. Pedestrian Kiosks. These kiosks may include a map of the downtown and a building directory.
5. Area Identification Sign. These signs are permanent and used to identify a neighborhood, subdivision, shopping district, industrial district, agricultural district or any special community area.
B. Type and Location. All wayfinding signs may be wall-mounted or freestanding and may be located in the public right-of-way with the approval of the city. Local directional signs may be wall-mounted on any building at a major downtown intersection, with the consent of the property owner.
C. Design and Character. All wayfinding signs shall have a unified design, including the frame, a decorational element, and logo. The signs shall have same-color placards identifying the major destinations (e.g., blue placards for attractions, orange placards for specific buildings or centers, green placards for parking). (Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.05.040).
15.50.050 Temporary signs.
Signs that are consistent with the standards identified in Tables 15.50-6 and 15.50-7 may be erected on a temporary basis in commercial, industrial, agricultural, open space, planned development and urban reserve zoning districts. Signs that are consistent with the standards identified in Tables 15.50-6 and 15.50-8 may be erected on a temporary basis in residential zoning districts.
33 TABLE 15.50-6: GENERAL TEMPORARY SIGN STANDARDS
General Requirements: All Temporary Signs
Placement Temporary signs shall not be placed in the
public right-of-way, except for approved
community event signs.
Sign Types Not Permitted A-frame signs, except for approved community events and open houses
Illumination No illumination
Length of Installation Temporary signs shall be removed promptly by the time/date identified on the sign permit
or as specified in this code.
34 TABLE 15.50-7: TEMPORARY SIGN TYPES--NONRESIDENTIAL ZONING DISTRICTS Sign Type Maximum
Number
Maximum Sign
Area
Maximum
Height
Other Requirements
Construction,
Future Tenant, and
Real Estate (For Sale
or For Lease Signs)
1 per business
frontage, up to 2
maximum
Downtown: 20
sq. ft. per sign
Elsewhere: 32
sq. ft. per sign
6 ft. Construction signs shall be removed upon completion of the city’s final building inspection. Future tenant signs shall be removed upon occupancy of the site. Real
estate signs shall be removed upon sale or lease of unit or building.
Promotional Signs 2 window signs or
2 portable signs;
1 banner sign per
business frontage
Banner: 10 sq. ft.
per sign
Window Sign: 25
percent of
window area
Roofline if
on building;
otherwise 8
ft.
Each business or use shall be allowed a maximum of two
weeks’ temporary promotional signs a quarter/season
(four times a calendar year), not to exceed a total of
eight weeks per calendar year. Temporary advertising
periods may be combined, but may never be longer than
four consecutive weeks (28 consecutive days) at any one time with at least four consecutive weeks between
periods of display. Portable signs may not be placed in the public right-of-way or on private property without
express written consent of the property owner.
Community Event
Signs
Up to 2 banner
signs and up to 6
portable signs
Banner signs:
100 sq. ft. total
sign area.
Portable signs:
Up to 3 sq. ft. per
sign
Banners: 35
ft.
Portable
signs: 3 ft.
Beacons, pennants, freestanding banners, inflatable
signs and signs placed in or above the public right-of-way may be permitted on a case-by-case basis, as
determined by the community development director.
Community event signs may be placed in the public
right-of-way in approved locations and shall be located so as to not obstruct traffic, parking, driveways, or
pedestrian walkways. Community event signs, except
portable signs, may be installed up to 21 days before the 35 Sign Type Maximum
Number
Maximum Sign
Area
Maximum
Height
Other Requirements
event and shall be removed within three days following
the event. Portable signs, including A-frames, may only be installed while the event takes place.
New Business Signs 1 per business
frontage, up to 2
maximum
Banner: 20 sq. ft.
per sign
Window sign: 25
percent of
window area
6 ft. New business signs that constitute a banner sign up to 20 square feet or a window sign up to 25 percent of the window area that identifies the name of the
establishment may be installed upon submittal of an
application for a permanent business identification sign.
The temporary identification sign shall be removed upon installation of the permanent identification sign.
36 TABLE 15.50-8: TEMPORARY SIGN TYPES--RESIDENTIAL ZONING DISTRICTS Sign Type Maximum
Number
Maximum Sign
Area
Maximum
Height
Other Requirements
Construction Signs:
Identify the name of
the contractor,
architect, etc.
1 per parcel 6 sq. ft. 5 ft. Shall be removed upon
completion of the city’s
final building inspection.
Real Estate Signs:
Multifamily
1 per parcel 16 sq. ft. 5 ft. Shall be removed upon
lease or sale of the
property.
(Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011: Ord.
C-3-10 §1(Exh. A(part)), 2010. Formerly 15.05.050).
15.50.060 Murals.
A mural is an expression of public art painted directly on the exterior of a building or on a backing that is affixed to the building and is sanctioned by the property owner. Murals are allowed in the commercial, industrial, agricultural, and open space districts pursuant to the following standards:
A. Murals may not be installed and maintained on an area exceeding a maximum sign face area of one hundred percent of the exterior wall area of the first three stories upon the wall or facade where the mural is located.
B. The sponsor of the mural may be acknowledged or other public information pertaining to the mural may be provided at the lowest corner of a mural. The designated area for the acknowledgement or public information must not exceed a maximum area of four square feet.
C. Murals used for any form of on-site commercial advertising or public information or solicitation of any kind are considered identification signs and are subject to the standards identified at Section 15.50.010. (Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §2(part), 2011:
Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.05.060). 37 Chapter 15.60
GENERAL SIGN REQUIREMENTS
Sections:
15.60.010 Determining allowable sign area and height.
15.60.020 Placement, design, sign elements and maintenance.
15.60.030 Illumination of signs.
15.60.040 Sign removal or replacement.
15.60.010 Determining allowable sign area and height.
A. Determining Allowable Sign Area. The sign area allowed for a business or use based on primary business frontage or lineal street frontage shall be determined as follows:
1. Business Frontage. This is the lineal frontage of a business that abuts public street right-of-way or other area accessible to the public such as business frontage on a parking lot or parking structure generally open to the public, or on a publicly traveled waterway such as the Pacific Ocean.
2. Primary Business Frontage. Where a business has more than one business frontage, the longest single business frontage may be used to calculate the maximum allowable sign area. The cumulative total of frontages shall not apply.
3. Lineal Street Frontage. This is the lineal distance that a parcel or parcels occupied by a business or businesses abuts a public street right-of-way. This lineal distance will be used to calculate sign area for multiple tenant center signs and to determine additional business identification and/or multiple tenant center signs.
B. Measurement of Sign Area. The area of a sign shall be calculated by enclosing the extreme limits of writing, representation, emblem, or any fixture of similar character, together with any background, frame, material or color forming an integral part of the display within a single continuous perimeter composed of squares or rectangles with no more than eight lines drawn at right angles (see Figure 15.60-1); however, if the sign is composed of individual letters or symbols using the wall as the background with no added decoration, the total sign area shall be calculated as seventy-five percent of the area of any rectilinear geometric figure that encloses the extreme limits of the characters or symbols.
38 FIGURE 15.60-1: MEASUREMENT OF SIGN AREA
1. Supporting framework or bracing that is clearly incidental to the display itself shall not be computed as sign area.
2. Double-faced signs with back-to-back sign faces shall be regarded as a single-face sign if the distance between each sign face does not exceed two feet at any point.
3. Where a sign contains three-dimensional objects (e.g., spheres, cubes, clusters of objects, sculpture, or statue-like objects), the sign area shall be measured as the maximum projection of the objects upon a single vertical plane.
4. For signs that incorporate time and temperature devices or changeable copy, the area of these devices shall be included in the total area of the sign.
C. Measurement of Sign Height. Sign height shall be measured from the uppermost part of the sign used in determining the area of the sign to the lowest elevation at the base of the sign. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.07.010).
15.60.020 Placement, design, sign elements and maintenance.
The placement, design and maintenance of a sign shall be subject to the following:
A. Placement. Signs shall be placed according to the following:
1. Other than official government signs or warning signs required by law, no sign shall be placed in or upon median strips or islands, bridges, benches, traffic signals, utility poles, 39 utility equipment, street lights, traffic signs, traffic sign posts or supporting structures, or on anchor wires or guy wires. No sign may be cut, burned, marked or in any other manner displayed on a cliff, hillside or tree.
2. No sign may be placed or located in such a manner as to constitute a safety hazard or to impede the public use of the public right-of-way, by factors including, but not limited to, sight distance and tripping hazard; and no sign shall be installed in such a manner that it blocks or impedes the normal pedestrian use of public sidewalks.
3. Signs shall be installed in compliance with the most recent version of the California Building Code and of the Americans with Disabilities Act.
4. Signs installed at or near any street intersection, doorway or driveway may not obstruct the free and clear vision of drivers and pedestrians or present other hazards to drivers and pedestrians.
5. No sign shall be erected in any manner where a portion of the sign or its supports would interfere with the free use of any fire escape, exit or standpipe, or obstruct any required stairway, door, ventilator, window, handicapped ramp or access, or required parking space.
6. Double-faced electric signs shall have a minimum of four inches between faces. The faces of such signs shall be fastened to an incombustible metal frame of such construction as to adequately support the sign faces.
7. Wall Signs. Signs placed flat against the building must be erected parallel thereto and the outside face of said sign may extend no more than eighteen inches from the wall of such building. Said signs may project over a public right-of-way a distance not exceeding said eighteen-inch depth.
8. Projecting and Hanging Signs. Signs that hang or project outward from a building must provide a minimum of eight feet of clearance above the sidewalk or any pedestrian area. If they are placed over an alley or other right-of-way that may have vehicle traffic, they must provide a minimum of thirteen feet of clearance. Such signs shall extend no more than five feet from a building and shall not extend within two feet of a curb or street.
9. Projecting Signs. All projecting signs must be double-faced except signs placed flat against a building or projecting V-shaped signs attached to a building at the open points of the V.
10. All signs displaying commercial messages shall be located on the same site as the advertised use or product, except as otherwise permitted by the provisions of this title or the Outdoor Advertising Act as set forth in the California Business and Professions Code.
11. A sign may be attached to the fascia of a sloping roof of a structure, but may not be located so as to extend above the upper edge of the fascia of said sloping roof. 40 B. Design. Signs shall consist of the following elements:
1. Sign design shall be physically compatible with the building and surroundings.
2. Any metal or reflective materials to be matte or nonglare surface.
3. Materials used to construct the sign and support structures shall be high quality and durable.
4. All transformers, equipment, programmers, and other related items shall be screened and/or painted to match the building or shall be concealed within the sign.
5. All freestanding signs that incorporate lighting shall have underground utility service.
6. All signs shall be constructed in compliance with any applicable building, electrical, or other code in effect at the time of construction or maintenance, with particular respect to wind and seismic loads and overturning moment.
7. All temporary signs and banners shall be made of a material designed to maintain an attractive appearance for as long as the sign is displayed.
8. Signs shall be designed in compliance with the most recent version of the California Building Code and of the Americans with Disabilities Act.
C. Sign Elements. A business identification sign or multiple tenant building or center identification sign may include a time/temperature display, changeable copy or electronic readerboard only as specifically provided by this section.
1. Time and/or Temperature Displays. A time and/or temperature display may be permitted as an integral component of a projecting sign or freestanding sign of at least twenty square feet provided it meets the following standards:
a. The time and/or temperature display shall have a maximum area of ten square feet.
b. The sign shall be designed in a manner that is compatible with other signs and with the structure on which it is placed.
2. Changeable Copy Signs. A changeable copy sign may be allowed as set forth below. a. Changeable copy signs may only be allowed as an integral component of a freestanding sign, projecting sign, marquee sign or wall sign that is larger than ten square feet, and either:
i. In conjunction with facilities used exclusively for the presentation of cultural, religious or theatrical activities as allowed under Title 18 and limited to a maximum of twelve square feet of changeable copy; or
41 ii. To advertise products, services, and prices in conjunction with a retail business and limited to a maximum of three square feet of changeable copy.
3. Electronic Readerboard Signs. An electronic readerboard may only be allowed on signs for civic and institutional uses as set forth below.
a. The maximum sign area devoted to electronic readerboard on any sign shall not exceed sixteen square feet.
b. The number of messages shall not exceed three.
c. The static display time for each line of copy is a minimum of two seconds. d. The time to complete change from one message to the next is a maximum of two seconds.
e. The change of message shall occur simultaneously for the entire sign face. f. The sign shall contain a default design that will freeze the device in one position if a malfunction occurs.
g. The sign shall have no revolving, flashing, moving, rotating, or similar intermittent lights.
h. The sign may be illuminated only during the user’s hours of operation and during functions and special events.
D. Maintenance. Signs shall be cleaned, updated, and/or repaired as necessary to maintain an attractive appearance and to ensure safe operation of the sign. Unacceptable sign conditions include: broken or missing sign faces, broken or missing letters, chipped or peeling paint, water damage, missing or inoperative lights, exposed mechanical or electrical components, missing or broken fasteners or other visible defects. Failure to respond to a written request from the city to perform maintenance work is a violation of city code and shall result in a citation. (Ord. C2013-04 §9(part), 2013; Ord. C-9-11 §6(part), 2011; Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.07.020).
15.60.030 Illumination of signs.
A. Illumination Standards. The artificial illumination of signs, either from an internal or external source, shall be designed to avoid light spillage, nuisance, momentary blindness or other hazard, unreasonable brightness, glare, and to eliminate negative impacts on surrounding rights-of-way and properties. The following standards shall apply to signs that may be illuminated:
1. External light sources shall be directed and shielded to limit direct illumination of an object other than the sign.
2. Signs shall not have exposed bulbs or lamps exceeding fifteen watts, and the brightness of luminous or backlighted signs shall not exceed two hundred fifty footlamberts. 42 3. The light from an illuminated sign shall not be of an intensity or brightness that will create a negative impact on residential properties in direct line of sight to the sign and the light shall not be visible within seventy-five feet of any residential zoning district. Internally illuminated signs visible from any residential zoning district shall not be illuminated between the hours of eleven p.m. and six a.m. unless they identify an establishment open for business during those hours.
4. All illuminated signs shall be of such intensity or arranged in such a manner so as not to create glare for abutting properties or vehicular traffic.
5. Signs shall not have blinking, flashing, or fluttering lights or other illumination devices that have a changing light intensity, brightness, direction or color, with the exception of time and/or temperature and electronic readerboard signs allowed pursuant to Section
15.60.020.
6. Colored lights shall not be used at a location or in a manner so as to be confused or constructed as traffic control devices.
7. Electrical raceways and conduits shall be placed so that they are not within public view.
Where this is physically impractical, or doing so would damage significant architectural features or materials, the community development director may grant a waiver of this requirement, provided all conduits, raceways, and similar devices are kept as small as possible and are painted the same colors as adjacent wall surfaces.
8. Awnings with backlit text or graphics are not allowed. Signs shall not be illuminated in a manner such that the awning appears to be internally illuminated. Lighting directed downwards that does not illuminate the entire awning is allowed.
9. For residential districts, the lighting shall not exceed one foot-candle.
10. Light sources shall utilize energy efficient fixtures to the greatest extent possible.
B. Type of Sign Illumination. The type of sign illumination (if any) permitted is as specified in Chapter 15.50, and as otherwise set forth in this chapter.
1. Halo-Type Illumination. The light source is concealed behind an opaque face and the rays of illumination are projected outwards toward the edge of the sign, forming a “halo” effect around the exterior of the sign.
2. Internal Illumination. The light source is concealed entirely within a sign which makes sign graphics visible by transmitting light through a translucent or semitranslucent material.
3. External, Indirect Illumination. The light source is exposed and directed toward the sign face but is shielded or concealed from view with proper shields or glass lenses to avoid glare. Examples of external illumination include gooseneck light fixtures and groundmounted light fixtures. 43 4. Reflective Illumination. Illumination that is not fluorescent or electrically charged, but that responds to light, such as from passing vehicle headlights, by shining or glowing.
5. Channel Letters. Three-dimensional, individually cut letters or figures, internally illuminated, affixed to a structure.
6. Neon. Neon or other comparable visible discharge gas may be used only on nonresidential establishments and shall not exceed twenty-five percent of the sign face.
Neon sign components shall comply with the following:
a. Neon signs and linear tubing shall be UL (Underwriters Laboratories) listed with a maximum thirty milliamps per circuit and be designed to accommodate a dimmer in order to reduce the brightness of the neon.
b. The neon manufacturer shall be registered with Underwriters Laboratories. c. Neon tubing shall not exceed one-half inch in diameter. d. Neon lighting adjacent to residential uses shall not exceed one-half foot-candle measured at the property line.
e. Neon tubing shall not be combined with any reflective materials (e.g., highly glazed tiles, mirrors, polished metal, or other similar materials). f. Neon signs placed within five feet of a storefront window shall not occupy more than twenty-five percent of the window area.
g. Neon lighting that completely surrounds a door, window, outline of a building, architectural element, or similar element is not allowed. (Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly
15.07.030).
15.60.040 Sign removal or replacement.
When a sign is removed or replaced, all brackets, poles, and other structural elements that support the sign shall also be removed. Affected building surfaces shall be restored to match the adjacent portion of the structure. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh.
A(part)), 2010. Formerly 15.07.040).
44 Chapter 15.70
SPECIAL SIGN PROGRAMS
Sections:
15.70.010 Special sign programs.
15.70.010 Special sign programs.
A. Purpose. A special sign program is intended to integrate project signs into the architectural design of the site, thereby creating an architectural statement of high quality. A special sign program provides a flexible means of applying and modifying the sign regulations in this title to ensure high quality in the design and display of multiple permanent signs for a project or use and to encourage creativity and excellence in the design of signs. It is expected that the design quality of signs proposed under a special sign program will be of a superior quality and creativity to those that might result through the normal sign permit process. The provisions of a special sign program shall not include temporary banners.
B. Applicability. A special sign program may be approved whenever any of the following circumstances exist:
1. A multiple tenant center requests a special sign program; or
2. The community development director determines that a special sign program is needed because of special project characteristics (e.g., the size of proposed signs, limited site visibility, a business within a business, the location of the site relative to major transportation routes, etc.) or when unique, creatively designed signs are being proposed and certain aspects of the sign’s design (e.g., animation) might not otherwise be allowed.
C. Approval Authority. A special sign program shall require approval by the planning commission who may consider the recommendation of any city council appointed advisory committee or commission. Following approval of a special sign program, permits for individual signs consistent with the approved special sign program may be approved by the community development director on an administrative basis.
D. Modification of Standards. A special sign program may include sign standards that are, at the same time, both more restrictive in some respects and less restrictive in other respects, compared to the standards established in Chapters 15.50 and 15.60. Allowed modifications may relate to sign area, number of signs, height, and location. Less restrictive provisions in a special sign program may encourage creative signage and allow signage otherwise prohibited by Sections 15.30.020(B) and (I), but shall not allow signs that are otherwise prohibited by this title.
E. Findings. In order to approve a special sign program, the following findings shall first be made:
1. The special sign program complies with the intent of this title; 45 2. Proposed signs enhance the overall development and are in harmony with other signs included in the plan with the structures they identify and with surrounding development;
3. The special sign program contains provisions to accommodate future revisions that may be required because of changes in use or tenants; and
4. The special sign program complies with the standards of this title, except that flexibility is allowed with regard to sign area, number, location, and/or height to the extent that the master sign plan will enhance the overall development, achieve superior quality design, and will more fully accomplish the purposes of this title.
F. Revisions to Special Sign Program.
1. Revisions to special sign program may be approved by the community development director if the intent of the original approval is not affected.
2. Revisions that would substantially deviate from the original approval shall require an amendment to the special sign program or the approval of a new special sign program by the planning commission. (Ord. C-2019-03 §2(Exh. A)(part), 2019; Ord. C-2015-04 §1(part), 2015; Ord. C-2013-04 §9(part), 2013; Ord. C-9-11 §7, 2011; Ord. C-3-10 §1(Exh. A)(part), 2010. Formerly 15.09.010).
46 Chapter 15.80
NONCONFORMING SIGNS
Sections:
15.80.010 Pre-existing nonconforming signs.
15.80.020 Abatement of signs.
15.80.030 Zoning changes.
15.80.010 Pre-existing nonconforming signs.
A. Pre-Existing Permanent Nonconforming Signs. All permanent signs and sign structures which were erected and in existence prior to the effective date of the ordinance codified in this title, and which were, at the time of such erection or establishment, in compliance with all the applicable statutes and ordinances, but which do not meet the requirements of this title, are considered pre-existing nonconforming signs. Such signs may remain on the premises upon which they are located for up to five years; provided, that such signs and sign structures are in full compliance with the safety and maintenance provisions of Sections 15.60.020 and
15.60.030; and provided, that the pre-existing nonconforming sign is not altered, modified, or changed in any way that would either require a sign permit under this code or that would be prohibited under this code. Pre-existing nonconforming signs shall either be brought into conformance with this code or shall be completely removed from the premises upon which they are located within five years from the effective date of the ordinances codified in this title.
All signs which exist within the city which were nonconforming under this code and any previous sign and advertising codes must be removed immediately.
B. Pre-Existing Permanent Nonconforming Signs--Special Circumstances. No legal pre-existing permanent nonconforming sign shall be required to be removed on the sole basis of its height or size if special topographic circumstances would result in a material impairment of visibility of the sign or the owner’s or user’s ability to adequately and effectively continue to communicate to the public through the use of the sign. The owner or user may maintain the sign at the business premises and at a location necessary for continued public visibility at the height or size at which the sign was previously erected pursuant to all applicable codes, regulations and permits. Such signs shall be deemed to be in conformance with this title.
C. Pre-Existing Temporary Nonconforming Signs. All temporary signs and temporary sign structures which were erected and in existence prior to the effective date of the ordinance codified in this title, but which do not meet the requirements of this title, shall be permitted to remain in existence notwithstanding their nonconforming character for a period of thirty days from the effective and official date of the ordinance codified in this title. Thereafter, all such signs and sign structures shall be in violation of this title, and subject to removal as in the case of any other illegal structure or use, subject to the exceptions set forth in this title.
D. Changes to Nonconforming Signs. Any changes to any pre-existing nonconforming sign or sign structure in terms of location, orientation, size, height, or use may only be made in 47 conformance with the provisions of this title. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.11.010).
15.80.020 Abatement of signs.
Any sign that is not in conformance with this title shall be removed or brought into conformity.
Abatement of signs that are not in conformance with this title shall occur consistent with Title
1. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010. Formerly 15.11.020).
15.80.030 Zoning changes.
Signs or sign structures that are made nonconforming with the provisions of this title due to a change in zoning initiated by the city, property owner or sign owner, are subject to review by the planning commission. (Ord. C-2013-04 §9(part), 2013; Ord. C-3-10 §1(Exh. A(part)), 2010.
Formerly 15.11.030).
48 Chapter 15.90
MESSAGE SUBSTITUTION
Sections:
15.90.010 Message Substitution.
15.90.010 Message Substitution.
A. Message Substitution. A noncommercial message of any type may be substituted, in whole or in part, for any duly permitted commercial message or any other noncommercial message. Any on-site commercial message may be substituted, in whole or in part, for any other on-site commercial message.
B. No Additional Approval. This message substitution may be made without any additional approval, permitting, registration or notice to the City. The purpose of this provision is to prevent inadvertent favoring of commercial speech over noncommercial speech, or favoring of any particular noncommercial message over any other noncommercial message.
C. Limitations. This message substitution provision does not:
1. create a right to increase the total amount of signage on a parcel, lot or land use;
2. affect the requirement that a sign structure or mounting device be properly permitted;
3. allow a change in the physical structure of a sign or its mounting device; or
4. authorize the substitution of a commercial message in place of a noncommercial message or the substitution of an off-site commercial message in place of an on-site commercial message.
49 Chapter 15.100
SEVERABILITY
Sections:
15.100.010 Severability
15.100.010 Severability.
This Title is to be severable to the greatest extent allowed by law. If any section, sentence, clause, phrase, word, portion or provision of this Title is held invalid or unconstitutional or unenforceable by any court of competent jurisdiction, such holding shall not affect, impair, or invalidate any other section, sentence, clause, phrase, word, portion, or provision of this Title which can be given effect without the invalid portion. 1452667.8 50 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Jessica Blair, Communications Director / City Clerk TITLE: AMENDED MAYOR’S LIST OF CITY COUNCIL REPRESENTATIVES AND DESIGNATED ASSIGNMENTS FOR 2022
______________________________________________________________________________ RECOMMENDATION:
Accept Mayor Ruddock’s Amended List of City Council Representatives and Designated Assignments for 2022.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
STRATEGIC ELEMENT:
This recommendation supports the Inclusive Governance Element of the Strategic Plan.
STRATEGIC ELEMENT:
Following the previous acceptance of the Mayor’s List of Assignments for 2022, the following changes were deemed necessary:
ABAG (Association of Bay Area Governments) Penrose / Ruddock League of California Cities – Peninsula Division Penrose / Ruddock SMCo Office of Emergency Services Penrose / Ruddock
ATTACHMENTS:
Amended Mayor’s List of City Council Representatives and Designated Assignments for 2022 51 Updated February 1, 2022
CITY COUNCIL ASSIGNMENTS
2022
A. Council Subcommittees
Subcommittee Designated Representative Meeting Schedule CSFA Grant Selection Ruddock / Penrose As designated
Education Ruddock / Brownstone As designated
Emergency Preparedness Ruddock / Penrose As designated
Finance Ruddock / Brownstone As designated
Human Resources Brownstone / Jimenez As designated
Legislative Affairs Ruddock / Rarback As designated
Mobility Ruddock / Penrose As designated
Public Safety Ruddock / Jimenez As designated
B. City and Interagency
Organization Designated Representative Meeting Schedule ABAG (Association of Bay Area
Governments)
Penrose / Ruddock Annual, 1 day
C/CAG (County/City Assoc. of
Governments)
Ruddock / Rarback 2
nd Thursday evenings
Chamber Government Affairs
Committee
Ruddock / Jimenez 3
rd Thursdays 4:00 p.m.
Council of Cities Selection Committee Ruddock / Penrose 4 th Friday evenings
League of CA Cities – Peninsula Division Penrose / Ruddock Quarterly, as designated Peninsula Clean Energy Authority Rarback / Ruddock 4
th Thursday
Peninsula Congestion Relief Alliance Penrose / Rarback Quarterly, as designated SAM (Sewer Authority Mid-Coastside) Ruddock / Penrose Alt: Rarback 4 th Monday 7pm
SMCo Airport Community Roundtable Rarback / Ruddock 1
st alt Wednesday 7 p.m.
52 Updated February 1, 2022
SMCo Airport Land Use Committee Brownstone / Ruddock Quarterly, 4 th Wednesday 4:00 pm
SMCo Council of Cities All 4
th Friday evenings
SMCo Library JPA Penrose / Ruddock Quarterly, Monday
evening
SMCo Office of Emergency Services Penrose / Ruddock Quarterly, 4th Thursday evening
C. Council Liaisons
Organization / Ad Hoc Committee Designated Representative Meeting Schedule Arts, Culture, and Events Ruddock / Jimenez As designated Beaches, Trails, and Parks Ruddock / Jimenez As designated Board of Supervisors Ruddock 2
nd/4th Tuesdays, 9:00 am
Cannabis Rarback / Penrose As designated
Chamber of Commerce / BID Jimenez / Brownstone As designated Homeless Jimenez / Penrose As designated
Housing and Human Services Ruddock / Brownstone As designated Mid-Coast Community Council Rarback / Ruddock 2
nd/4th Wednesdays
Permit Streamline Process Penrose / Ruddock As designated Schools, Boys & Girls Club Ruddock / Brownstone As designated Technology and Economic Develop. Ruddock / Brownstone As designated 53
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: John Doughty, Public Works Director
Jennifer Chong, Public Works Program Manager
TITLE: FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH INTEGRAL CONSULTING, INC. FOR PHASE 2 OF THE MIRAMONTES POINT SEA
LEVEL RISE VULNERABILITY AND FISCAL IMPACT ASSESSMENT
RECOMMENDATION:
Adopt a resolution authorizing the transfer of $28,500 in unallocated Capital Budget to Capital Improvement Project Number 1002 (Climate Action and Adaptation Plan) and authorizing the City Manager to execute a First Amendment to the Professional Services Agreement with Integral Consulting, Inc. to perform the services identified in Phase 2 of the proposed scope and increasing the contract amount to $58,500.
FISCAL IMPACT:
Approval of this item includes a budget request for $28,500 to be transferred from unallocated Capital Funds. Phase 1 work is being funded from the Public Works operating budget.
STRATEGIC ELEMENT:
This action supports all Elements of the Strategic Plan.
BACKGROUND:
In April 2015, the City successfully secured a grant from the Ocean Protection Council to conduct a sea level rise (SLR) vulnerability assessment. The assessment addressed flooding, tsunami, and erosion risks exacerbated by sea level rise from the north end of the City limits to the north end of the Ocean Colony Golf Courses, at which point there was no longer USGS data available. This assessment was adopted by the City Council in April 2016.
In 2019, the County of San Mateo (County) began work on the South Coast Sea Level Rise Risk and Solutions Study, continuing south from Ocean Colony area to the Santa Cruz/San Mateo County line (South County).
54
In August 2019 the City initiated work on its Climate Action and Adaptation Plan (CAAP). The plan is comprised of two components: 1) climate action (strategies to reduce the City’s greenhouse gas emissions/carbon footprint); and 2) adaptation strategies in light of climate change and sea level rise. Significant work has been undertaken on the Climate Action portion of the plan. Prior and future studies will provide foundational support to adaptation portions of the CAAP. No funding has been allocated for adaptation work.
In April 2020, the City’s comprehensive update to the Local Coastal Land Use Plan (LUP) was certified by the Coastal Commission. The updated LUP incorporates policies about climate change and sea level rise, such as Policy 7-11 that calls for the City to use best available sea level rise science to periodically assess vulnerable assets and develop adaptation strategies.
Following release of the South County study, City staff reached out to the Integral Consulting, Inc. (Integral), the County’s consultant, to discuss expanding assessment and adaptation in the Ocean Colony area.
In November 2021, the City executed a contract with Integral Consulting Inc. (Integral) under the City Manager’s authority to complete Phase 1 of a Sea Level Rise Vulnerability and Fiscal Impact Assessment (SLR Assessment). This work will result in the consolidation of the entire City coastline into a single assessment. This will also allow the County to proceed with South County work absent this small portion of the City.
In December 2021, City and County staff provided an update to the City Council on the work being done by the County’s South County study and the City’s SLR Assessment and requested direction on Phase 2 of the SLR Assessment project. The City Council directed staff to return with a formal amendment request.
DISCUSSION:
The City’s 2016 SLR assessment was limited in geographic scope due to a lack of available USGS data. Since its completion, additional data for the area of Miramontes Point in southern Half Moon Bay to the south end of the city limits has become available. While the County incorporated this area into their South County study, staff believed the unique nature of the properties and location within the City limits (e.g. Coastal Trail, Ocean Colony Golf Courses and Ritz Carlton) warranted a more tailored approach and hired Integral to do a deeper dive.
Integral proposed a scope of work (Attachment 1) with two phases. Phase 1 includes a vulnerability and economic impact assessment of the aforementioned area. Phase 2 includes topographic and image data collection of the area, evaluation of adaption alternatives, and public outreach. The topographic and image data collection was added to the proposal after the presentation to Council in December 2021, increasing the cost of Phase 2 from $25,000 to $28,500.
55
ATTACHMENTS:
1. Resolution
2. Amended Scope of Work - Integral Consulting, Inc.
56 Resolution No. C-2022-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING AN AMENDMENT TO THE FY 2021-22 CAPITAL IMPROVEMENT PLAN BUDGET AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH INTEGRAL CONSULTING, INC. IN THE AMOUNT OF $58,500 FOR THE
MIRAMONTES POINT SEA LEVEL RISE VULNERABILITY AND FISCAL IMPACT ASSESSMENT WHEREAS, the City Council included the Climate Action and Adaptation Plan in the FY 2021-2026 Half Moon Bay Capital Improvement Program; and WHEREAS, significant work has been undertaken on the climate action portion of the plan but no funding has been allocated for adaptation work; and WHEREAS, the County of San Mateo (County) began work on the South Coast Sea Level Rise Risk and Solutions Study in 2019, which included the Ocean Colony area in Half Moon Bay; and
WHEREAS, the City entered into an agreement with Integral Consulting, Inc. (Integral) in November 2021 for $30,000 under the City Manager’s authority to perform an expanded vulnerability and economic impact assessment for the Ocean Colony area; and WHEREAS, the City Council directed staff to pursue Phase 2 of the vulnerability and economic impact assessment with Integral after receiving a presentation by staff at the December 21, 2021 City Council meeting; and
WHEREAS, Phase 2 will include topographic and image data collection, adaptation planning, and outreach; and
WHEREAS, additional funding is necessary to execute the first amendment to the agreement with Integral to include the Phase 2 work; and WHEREAS, adequate funds are available in overall FY 2021-22 Capital Budget to cover the additional $28,500 needed.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby approves the augmentation of the FY 2021-22 Capital Budget Project No. 1002 in the amount of $28,500 from the City’s FY 2021-22 Capital Budget and authorizes the City Manager to execute Amendment No. 1 to the contract with Integral Consulting, Inc. for the Miramontes Point Sea Level Rise Vulnerability and Fiscal Impact Assessment for $58,500. 57 ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 1
st day of February 2022 by the City Council of Half Moon Bay by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
ATTEST: APPROVED:
__________________________ _____________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor
58 Integral Consulting Inc.
200 Washington St.
Suite 201
Santa Cruz, CA 95060
telephone: 831.466.9630
www.integral-corp.com
October 27, 2021 Reference No. P3349
John Doughty
Public Works Director
City of Half Moon Bay, CA
Email: [email protected]
Telephone: (650) 726-8252
Subject: Miramontes Point Sea Level Rise Vulnerability and Fiscal Impact Assessment Dear John,
Integral Consulting Inc. (Integral) is pleased to provide The City of Half Moon Bay with this proposal to conduct a Sea Level Rise Vulnerability Assessment and Fiscal Impact Assessment for the area of Miramontes Point in southern Half Moon Bay, encompassing the properties of the Half Moon Bay Golf Links and the Ritz-Carlton Hotel (see figure 1).
Integral recognizes that a cohesive sea level rise and coastal hazards assessment of this area has not been conducted at a scale suitable for site specific planning, nor has the potential economic ramifications of changes in the golf course and hotel visitation on revenues to the City and property owners.
The study would specifically accomplish 4 tasks.
1. Project site specific coastal erosion hazard extents
2. Identify vulnerable assets, facilities, resources and infrastructure
3. Conduct economic and fiscal impact analyses on public (City) and private revenue streams under a no action (allow erosion) alternative
4. Considering up to three feasible adaptation strategies, conduct a holistic analysis that compares future physical changes to the study area and associated future economic and fiscal impacts to the baseline to support City planning and facility management Approach
This technical memo outlines the proposed scope of work to support the City of Half Moon Bay and partners with a Sea Level Rise Vulnerability and Fiscal Impact Assessment for Miramontes Point (The “Project”). Our approach is to leverage available public and private data sources to characterize the existing uses, hazards and revenues, then model future cliff erosion hazard areas based on the range of 59 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
recommended State guidelines on future sea level rise (OPC and CCC 2018). The cliff erosion hazard area would identify and map the following:
1. Areas of Immediate Erosion Concern – Areas where cliff and bluff face erosion are most severe and of immediate concern
2. Areas of Projected Future Erosion – Acceleration of historical rates of erosion based on the increase in the hours of wave attack that impacts the toe of the cliff. Specific sea level rise scenarios and/or time horizons would be chosen based on the latest State guidance (OPC, CC 2018) after consultation with the City.
The hazard areas would be used to inform a site specific vulnerability assessment and adaptation plan.
Work would include:
1. Vulnerability Assessment - Evaluate and map the exposure to coastal erosion for existing assets, uses, and resources over time, then identify the risks to each, key damage thresholds and estimate the potential future economic losses from a no action alternative.
2. Adaptation Plan – In collaboration with the City and other select stakeholders, identify three preferred adaptation approaches and reanalyze each to examine physical and economic tradeoffs compared to a do nothing approach.
3. Preferred alternative – for the highest ranked alternative develop step-by-step adaptation pathways and lay out requisite permitting, environmental and regulatory paths Figure 1) Study Area Map
60 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
Deliverables for this scope include
1. A technical memo detailing the range of sea level rise related exposure and impacts, methodologies, and potential economic consequences
2. An adaptation evaluation detailing a range of feasible adaptation responses with recommendations to both the City and property owner on next steps
3. Geographic Information System (GIS) data files of cliff erosion hazard zones and vulnerable assets and amenities.
Schedule
The estimated overall timeline for completion of this scope of work is six (6) months from a signed contract.
• Kickoff meeting before Thanksgiving
• December 7, 2021 City Council Presentation
• Phase 1 work by February 15, 2022
• Phase 2 pending authorization by May 31, 2022 (detailed schedule TBD) Technical Approach
Our team relies on a science-based technical approach to evaluate risk, assess resource vulnerabilities, understand uncertainty, and identify management triggers and adaptation pathways. We will leverage the best available data and state of the science to accomplish this task.
A range of tasks are anticipated:
Task 1. Determine site-specific historic and accelerated future rates of cliff erosion:
i. Site visit, data collection, background review
ii. Cliff feature delineation tool (CFDT) method to determine blufftop locations iii. DSAS method to determine historic erosion rates
iv. Accelerate historic cliff erosion rates with sea level rise Task 2. Conduct a vulnerability assessment:
i. Map all assets, infrastructure, and amenities in the project area ii. Map and report vulnerable assets, infrastructure, and amenities by seal level rise horizon
Task 3. Conduct an economic assessment:
i. Valuation of assets, income streams, revenues and non market recreational/other uses at risk
ii. Report potential economic losses if nothing is done Task 4. Develop an adaptation plan:
61 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
i. Identify potential adaptation pathways and site-specific strategies ii. Fiscal and economic evaluation including a cost benefit analysis between approaches highlighting tradeoffs between public and private impacts.
The team will consult with the City of Half Moon Bay staff, as well as local landowners/managers, to ensure that both the data needs and project goals are met.
Detailed Project Approach
Phase 1: Vulnerability and Economic Impact Assessment
Task 1 – Erosion Rate Calculations
Existing Cliff Erosion Models
There are two known regional cliff erosion models for this area, the USGS CoSMoS long-term coastal change model completed in 2020, and the Pacific Institute cliff erosion model completed in 2009.
Neither of these models considers location-specific historical failure distances for this area, and both were developed at a regional scale of analysis using a coarse level of spatial detail. The Pacific Institute model has been utilized in both the Sea Change San Mateo County and San Mateo South Coast Vulnerability assessments; however, this model is considered overly conservative and not appropriate for this facility level of analysis.
There have been a small handful of site-specific geotechnical and erosion hazard investigations for smaller areas within the larger project area, including an investigation by Bay Area Geotechnical Group in 2002, relying on historical aerial photographs and documentation of bluff failures to determine erosion rates near the 18th hole of the Old Course, and an ongoing cliff erosion assessments using highresolution surveying techniques near the hotel overlook by VEC Frontiers and AECOM Consultants.
Both of these efforts are limited in spatial scale; however, they can still be used to better inform a larger modeling effort.
Determine Historical Cliff Erosion Rate
Our team will rely on digital elevation models (DEMs) from publicly available LiDAR flights (1997- 2018) and any available location-specific surveys from consultants, including photogrammetric and 3D laser scan derived digital elevation models (2009-2020). Important bluff features, including toe and top locations, will be determined using the USGS CFDT tool, and recession rates will be calculated using the USGS DSAS tool.
For more distant time periods, historical bluff failure locations and erosion extents will be determined from visual interpretation of historical T-Sheet surveys (going back to the late-1800s) and aerial photographs (1931, 1943, and 1960s on from federal, state, and private entities). All erosion rate calculations will be verified with other studies for this area, including Bay Area Geotechnical Group, (Hapke et al 2006, Griggs et al 2010, and Limber 2014). 62 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
Image: USGS CFDT tool with transects (green lines), top of the bluff (red line), toe of the cliff (blue line), and other features (yellow points) Accelerate Historical Cliff Erosion Rate to Account for Sea Level Rise The study will rely on the latest sea level rise guidance from the OPC. This sea level rise will then inform an accelerated rate of erosion for the future, and locations of the furthest extent of potential bluff failure will be applied for each transect. Potential recession distances will then be translated into an along-shore bluff erosion hazard area for each sea level rise scenario, and these erosion hazard areas will be used to inform what asset, infrastructure, or amenity is vulnerable and when.
Task 2 – Vulnerability Assessment
The goals of the vulnerability assessment are to 1) evaluate the changes in exposure over time and the increasing costs and impacts on the existing assets and 2) identify key damage thresholds that will require adaptation. Within the potential cliff erosion hazard area are several private and publicly significant assets. These include public recreational amenities such as the Half Moon Bay Coastside Trail, the Canada Verde Coastal Access Stairway, Miramontes Point overlook, and the beaches of Canada Verde, Manhattan Beach, and Three Rocks Beach. Private facilities include The Half Moon Bay Golf Links and the Ritz-Carlton Hotel building and its related outdoor amenities (e.g. ocean lawn, Miramontes terrace). The assessment will detail exposures at specific sea level rise and time horizons, showing for instance, what golf course greens and hotel amenities are at risk and when.
All potentially vulnerable assets and land areas will be brought into a GIS environment, and potential exposures at each sea level rise horizon will be reported. The exposures will consider the Task 1 erosion projection extents, as well as the existing FEMA Flood Insurance Rate Maps, and the County of San Mateo Coastal Confluence flood hazards. A series of detailed vulnerability maps will be created, and 63 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
results for a range of exposures will be reported in a technical memo. Integral will also include the most recent tsunami hazard mapping as an appendix.
Task 3 – Economic Assessment
The economic analysis will provide several rough order of magnitude estimates for the potential damage or loss of assets from potential cliff erosion into context. The assessment would consider all existing values and income data, as well as non-market values associated with the usage of private and public resources within the study area.
Economic considerations (dependent on data availability, some may need to be estimated):
• Land, infrastructure, and other assets valuations (estimate of loss or replacement cost) • Public income streams (e.g. Transient Occupancy Tax, property tax) • Private income streams (golf course round fees, events, hotel income) • Public recreation valuations from any beach and trail user survey/visitation data and parking records.
Phase 2: Adaptation and Outreach
Task 4 - Topographic and Image Data Collection
A drone survey will be conducted in order to update the existing dataset to have a current perspective on the condition, geology, and geomorphology of the cliff. The survey will collect high-resolution oblique aerial imagery, which will then be processed to create a digital elevation model (DEM) of the site from which a current cliff top will be derived and included with the long-term retreat rate calculations as part of the hazard analysis. To create an accurate and high-resolution DEM, the elevation data from the processed aerial imagery will be carefully QA/QC’d prior to derivation of the cliff top edge.
Task 5 – Adaptation Plan
This adaptation work will build on the results of the vulnerability and economic assessments to identify feasible adaptation strategies over time. In consultation with staff from the City of Half Moon Bay as well as private landowners, the adaptation plan will present preferred adaptation solutions that will provide increased resiliency from potential cliff erosion and sea level rise. The goal of this adaptation plan is to integrate preferences for short- and long-term adaptation solutions with a holistic economic cost/benefit analysis to identify at which point in the future certain adaptation approaches become less desirable (e.g., too costly) and which adaptation strategies make better sense in the future.
Through this adaptation pathway approach, the team intends to identify short-term (0–10 year) capital improvement projects, mid-term (10–30 year) planning such as redevelopment standards and improvements, and long-term (30+ year) key realignments or location-specific approaches for critical assets and infrastructure. Long-term solutions may also include envisioning adaptive reuse or reconfigurations of assets in vulnerable areas.
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Task 6 – Optional Public Engagement Workshop
This optional task to be authorized in writing would allow for a Planning Commission and/or City Council informational presentation. Agenda to be determined in collaboration with the City.
Project Budget Summary
Integral’s total proposed project budget is $58,500 which includes a $5,000 contingency to be authorized in writing if needed. Table 1 presents the proposed project budget breakdown by task. The project will be billed on a time and materials basis by task, not to exceed the total amount below.
Table 1 Proposed project budget breakdown by task.
Tasks: Budget
Phase 1
Erosion Rate Calculations $10,000
Vulnerability Assessment $12,000
Economic and Fiscal Impacts $8,000
Total Phase 1 $30,000
Phase 2
Topographic and Imagery
Collection
$3,500
Adaptation Plan and Economic
tradeoffs
$15,000
Optional Engagement and Public
workshop
$5,000
On-going Support/ Contingency $5,000
Total Phase 2 $28,500
Total $58,500
Integral Standard Rates and Terms
Integral standard hourly rates for personnel to be utilized for this project and are outlined below (Table 2). These rates will be in effect for 2021-2022.
Table 2 Billing categories and rates for personnel to be utilized for this project.
Professional Category Unit Regular
Principal $/hr $255.00
Senior Economist $/hr $220.00
Project Scientist $/hr $178.00
Administrative $/hr $126.00
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Invoicing and Payment Terms
Monthly invoicing and Net 30-day payment terms, unless otherwise agreed to by written contract.
Project Approval
This proposal can be further refined, either now or in the future, to meet Client’s specific wishes and requirements. Upon completion of this agreement it is understood that Consultant and Client both agree with the project information detailed in this Proposal and Statement of Work. This information will be used as the master guideline for the execution of the project.
Both the Client and the Consultant must approve any change requests to this document after its initial approval. Additional charges and fees may be added due to changes, unforeseen problems or change in project scope, and will be subject to approval. Any significant changes to the scope of this project may require the creation of a new Statement of Work and will be treated as a new project. Consultant and Client will mutually agree to any changes made to the statement or description of work described in this Proposal and Statement of Work. Changes in the work and price will be incorporated as a modification to this agreement.
The approval process for change is outlined below.
• Initiation − either party may initiate a change to this Statement of Work. All changes must be requested in writing via e-mail or letter and both parties will review the changes to assess the potential impact to schedule and price.
• Evaluation − Formal impact of change is made and presented in writing via email correspondence or letter.
• Approval − Changes and impact of change are discussed and any schedule or price change is negotiated and approved by both parties in writing
Confidential Information
The City of Half Moon Bay confirms and agrees that this proposal and all its exhibits, attachments, or enclosures contain confidential, proprietary, and valuable business, financial, and technical information (Confidential Information) that shall not be duplicated, used, or disclosed to any third party—in whole or in part—for any purpose other than to evaluate this proposal to negotiate and execute a contract between Integral and The City of Half Moon Bay. If a contract is awarded to Integral as a result of—or in connection with—the submission of this Confidential Information, The City of Half Moon Bay shall have the right to duplicate, use, or disclose the Confidential Information to the extent provided in the resulting contract. If no contract is executed within 30 days of receipt, The City of Half Moon Bay agrees to destroy all digital and hard copies of the proposal. 66 Miramontes Point Vulnerability and Fiscal Impacts Confidential and Proprietary October 27, 2021 Not for Third Party Distribution
Closing
This proposal constitutes Integral’s offer of services. Modification of the scope of services, the rate schedule(s), and the schedule of performance or terms may require modification of the estimated fee.
Thank you for your consideration of our offer. Please call us if you would like to discuss or require additional information. We look forward to working with you on this matter.
Your signature below confirms your acceptance of this proposal, scope of work, budget, rates, and terms and conditions.
Accepted By:
Signature: Date:
Name/Title: _____________________________________
Accepted By: Integral Consulting Inc.
1/21/22________
Dr. David Revell
Principal – Coastal Resilience
cc: Craig McDaniel
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Lisa Lopez, Administrative Services Director
Kenneth Stiles, Senior Accountant
TITLE: ACCEPTANCE OF AUDITOR’S REPORTS FROM THE FISCAL YEAR 2020-21 AUDIT ______________________________________________________________________________ RECOMMENDATION:
Accept the Required Communications and Memorandum of Internal Control reports from the fiscal year 2020-21 independent auditor.
FISCAL IMPACT:
There is no fiscal impact with the acceptance of this item.
STRATEGIC ELEMENT:
This recommendation supports the Infrastructure and Environment and Fiscal Sustainability Elements of the Strategic Plan.
BACKGROUND:
For fiscal year ending on June 30, 2021, the City selected Maze and Associates to perform the annual independent audit. The audit concluded with the final financial statements and the delivery of the Annual Comprehensive Financial Report (ACFR) to Council on December 21, 2021.
In addition to the ACFR, the auditor has issued reports for Council acceptance. These reports include:
• Required Communications
• Memorandum of Internal Control
These reports detail any audit findings during the fiscal year 2020-21 audit. Both reports are attached for Council acceptance.
ATTACHMENTS:
1. Required Communications for the Year Ended June 30, 2021
2. Memorandum of Internal Control for the Year Ended June 30, 2021 68 CITY OF HALF MOON BAY
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2021
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70 CITY OF HALF MOON BAY
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2021
Table of Contents
Page
Required Communications................................................................................................................ 1 Significant Audit Matters ............................................................................................................... 1 Accounting Policies ................................................................................................................. 1 Unusual Transactions, Controversial or Emerging Areas..................................................... 2 Accounting Estimates.............................................................................................................. 3 Disclosures ............................................................................................................................... 3 Difficulties Encountered in Performing the Audit .................................................................. 3 Corrected and Uncorrected Misstatements.............................................................................. 4 Disagreements with Management........................................................................................... 4 Management Representations.................................................................................................. 4 Management Consultations with Other Independent Accountants......................................... 4 Other Audit Matters or Issues.................................................................................................. 4 Other Information Accompanying the Financial Statements ....................................................... 4 71 This Page Left Intentionally Blank
72 REQUIRED COMMUNICATIONS
To the City Council of
the City of Half Moon Bay, California
We have audited the basic financial statements of the City of Half Moon Bay for the year ended June 30, 2021. Professional standards require that we communicate to you the following information related to our audit under generally accepted auditing standards, and Government Auditing Standards.
Significant Audit Matters
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as follows:
No new accounting policies were adopted, and the application of existing policies was not changed during the year, except as indicated below:
GASB 84 - Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities.
An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. An exception to that requirement is provided for a business-type activity that normally expects to hold custodial assets for three months or less.
This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. 1 73
A fiduciary component unit, when reported in the fiduciary fund financial statements of a primary government, should combine its information with its component units that are fiduciary component units and aggregate that combined information with the primary government’s fiduciary funds.
This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets.
The pronouncement became effective, as disclosed in Note 7f to the financial statements.
GASB 90 – Majority Equity Interests (an amendment of GASB Statements No. 14 and No. 61) The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value.
For all other holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, and the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This Statement establishes that ownership of a majority equity interest in a legally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit.
This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition.
The pronouncement became effective, but did not have a material effect on the financial statements.
Unusual Transactions, Controversial or Emerging Areas
We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
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Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements is:
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net OPEB Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net OPEB liabilities and deferred outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Fair Value of Investments: As of June 30, 2021, the City held approximately $44.8 million of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2021. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2021.
Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Disclosures
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
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Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in a management representation letter dated November 16, 2021.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Matters or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Information Accompanying the Financial Statements We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information. 4 76
We were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This report is intended solely for the information and use of the City Council and management and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
November 16, 2021
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78 CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2021
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80 CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2021
Table of Contents
Page
Memorandum on Internal Control .................................................................................................. 1 Schedule of Other Matters ...................................................................................................... 3 Status of Prior Year Other Matters ....................................................................................... 11 81 This Page Left Intentionally Blank
82 MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of Half Moon Bay, California
In planning and performing our audit of the basic financial statements of the City of Half Moon Bay as of and for the year ended June 30, 2021, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.
Management’s written responses included in this report have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
November 16, 2021
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84 CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2021-01: Internal Control Over Journal Entries
Journal entries are an important transaction cycle that affect all aspects of accounting and financial reporting. Journal entries should be reviewed by someone other than the prepare for accuracy before they are posted to the general ledger. The review and approval should be documented by a reviewers signing and dating that their review has been completed and the entry is approved.
During the interim phase of the audit, we selected 6 journal entries to test for segregation of duties an approval. This includes the reviewer being someone other than the preparer, and audit evidence which could signify someone other than the preparer reviewed the journal entries. Through our testing, we noted that 3 out of the 6 entries did not include audit evidence which could signify someone other than the preparer reviewed the journal entries.
Per conversation with City Staff, the City had begun to have one of the accounting technicians perform the review of the journal entries prepared by the reviewer. However, there was no documentation being performed of this review.
Without proper review and approval of journal entries there is an increased likelihood that errors would go unnoticed.
We recommend the City continue to improve the reviewing process to ensure that all entries are reviewed by someone other than the preparer.
Management’s Response: The City agrees and has implemented a second review of journals beginning in August 2020. All journals since then are reviewed by someone other than the preparer. Both the preparer and the reviewer each sign to maintain proper documentation for future audit review.
2021-02 Timely Preparation & Submittal of Treasurer’s Reports The City’s investment policy that the Treasurer’s Reports be submitted to the City Council within 30 days of the end of the quarter.
During our testing of the Treasurer’s Reports for the quarters ending on December 31, 2020, March 31, 2021 and June 30, 2021, it was noted that they were prepared on April 29, 2021, May 5, 2021 and August 10, 2021, respectively.
It appears that the conditions listed above are due to staff oversight.
The City was not in compliance with its own Investment Policy.
We recommend that the City ensures that all Treasurer’s reports are being prepared and submitted to the City Council within 30 days of the quarter’s end as outlined in the Investment Policy.
Management’s Response: The City experienced challenges with processing delays due to telecommuting and a vacancy in the Finance department brought on from the hiring freeze. Since then, the City has filled the vacancy and have the staff capacity required to deliver the reports on a timely basis.
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CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2021/22:
GASB 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this Statement.
Management Response: The City will review the applicability of this GASB and implement accordingly, if applicable.
GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.
This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund.
This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. 4 86
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
Management Response: The City will review the applicability of this GASB and implement accordingly, if applicable.
EFFECTIVE FISCAL YEAR 2022/23:
GASB 91 – Conduit Debt Obligations
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.
A conduit debt obligation is defined as a debt instrument having all of the following characteristics:
There are at least three parties involved:
(1) an issuer
(2) a third-party obligor, and
(3) a debt holder or a debt trustee.
The issuer and the third-party obligor are not within the same financial reporting entity. The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt of the issuer.
The third-party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt issuance.
The third-party obligor, not the issuer, is primarily obligated for the payment of all amounts associated with the debt obligation (debt service payments).
All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so.
An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s debt service through a voluntary commitment.
5 87
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 91 – Conduit Debt Obligations (Continued)
This Statement also addresses arrangements—often characterized as leases—that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities.
Payments from third-party obligors are intended to cover and coincide with debt service payments.
During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements.
Issuers should not report those arrangements as leases, nor should they recognize a liability for the related conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the following provisions apply:
If the title passes to the third-party obligor at the end of the arrangement, an issuer should not recognize a capital asset.
If the title does not pass to the third-party obligor and the third party has exclusive use of the entire capital asset during the arrangement, the issuer should not recognize a capital asset until the arrangement ends.
If the title does not pass to the third-party obligor and the third party has exclusive use of only portions of the capital asset during the arrangement, the issuer, at the inception of the arrangement, should recognize the entire capital asset and a deferred inflow of resources. The deferred inflow of resources should be reduced, and an inflow recognized, in a systematic and rational manner over the term of the arrangement.
This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period.
How the Changes in this Statement will Improve Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.
Management Response: The City will review the applicability of this GASB and implement accordingly, if applicable.
6 88
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.
This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.
PPPs – This Statement requires that PPPs that meet the definition of a lease apply the guidance in Statement No. 87, Leases, as amended, if existing assets of the transferor that are not required to be improved by the operator as part of the PPP arrangement are the only underlying PPP assets and the PPP does not meet the definition of an SCA. This Statement provides accounting and financial reporting requirements for all other PPPs: those that either (1) meet the definition of an SCA or (2) are not within the scope of Statement 87, as amended (as clarified by this Statement). The PPP term is defined as the period during which an operator has a noncancelable right to use an underlying PPP asset, plus, if applicable, certain periods if it is reasonably certain, based on all relevant factors, that the transferor or the operator either will exercise an option to extend the PPP or will not exercise an option to terminate the PPP.
A transferor generally should recognize an underlying PPP asset as an asset in financial statements prepared using the economic resources measurement focus. However, in the case of an underlying PPP asset that is not owned by the transferor or is not the underlying asset of an SCA, a transferor should recognize a receivable measured based on the operator’s estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, a transferor should recognize a receivable for installment payments, if any, to be received from the operator in relation to the PPP.
Measurement of a receivable for installment payments should be at the present value of the payments expected to be received during the PPP term. A transferor also should recognize a deferred inflow of resources for the consideration received or to be received by the transferor as part of the PPP. Revenue should be recognized by a transferor in a systematic and rational manner over the PPP term.
This Statement requires a transferor to recognize a receivable for installment payments and a deferred inflow of resources to account for a PPP in financial statements prepared using the current financial resources measurement focus. Governmental fund revenue would be recognized in a systematic and rational manner over the PPP term.
7 89
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements, (Continued)
This Statement also provides specific guidance in financial statements prepared using the economic resources measurement focus for a government that is an operator in a PPP that either (1) meets the definition of an SCA or (2) is not within the scope of Statement 87, as amended (as clarified in this Statement). An operator should report an intangible right-to-use asset related to an underlying PPP asset that either is owned by the transferor or is the underlying asset of an SCA. Measurement of the right-touse asset should be the amount of consideration to be provided to the transferor, plus any payments made to the transferor at or before the commencement of the PPP term, and certain direct costs. For an underlying PPP asset that is not owned by the transferor and is not the underlying asset of an SCA, an operator should recognize a liability measured based on the estimated carrying value of the underlying PPP asset as of the expected date of the transfer in ownership. In addition, an operator should recognize a liability for installment payments, if any, to be made to the transferor in relation to the PPP. Measurement of a liability for installment payments should be at the present value of the payments expected to be made during the PPP term. An operator also should recognize a deferred outflow of resources for the consideration provided or to be provided to the transferor as part of the PPP. Expense should be recognized by an operator in a systematic and rational manner over the PPP term.
This Statement also requires a government to account for PPP and non-PPP components of a PPP as separate contracts. If a PPP involves multiple underlying assets, a transferor and an operator in certain cases should account for each underlying PPP asset as a separate PPP. To allocate the contract price to different components, a transferor and an operator should use contract prices for individual components as long as they do not appear to be unreasonable based on professional judgment or use professional judgment to determine their best estimate if there are no stated prices or if stated prices appear to be unreasonable. If determining the best estimate is not practicable, multiple components in a PPP should be accounted for as a single PPP.
This Statement also requires an amendment to a PPP to be considered a PPP modification, unless the operator’s right to use the underlying PPP asset decreases, in which case it should be considered a partial or full PPP termination. A PPP termination should be accounted for by a transferor by reducing, as applicable, any receivable for installment payments or any receivable related to the transfer of ownership of the underlying PPP asset and by reducing the related deferred inflow of resources. An operator should account for a termination by reducing the carrying value of the right-to-use asset and, as applicable, any liability for installment payments or liability to transfer ownership of the underlying PPP asset. A PPP modification that does not qualify as a separate PPP should be accounted for by remeasuring PPP assets and liabilities.
APAs – An APA that is related to designing, constructing, and financing a nonfinancial asset in which ownership of the asset transfers by the end of the contract should be accounted for by a government as a financed purchase of the underlying nonfinancial asset. This Statement requires a government that engaged in an APA that contains multiple components to recognize each component as a separate arrangement. An APA that is related to operating or maintaining a nonfinancial asset should be reported by a government as an outflow of resources in the period to which payments relate.
Management Response: The City will review the applicability of this GASB and implement accordingly, if applicable.
8 90
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.
A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.
The subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, —which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. A government should recognize amortization of the subscription asset as an outflow of resources over the subscription term.
Activities associated with a SBITA, other than making subscription payments, should be grouped into the following three stages, and their costs should be accounted for accordingly:
Preliminary Project Stage, including activities such as evaluating alternatives, determining needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as incurred. Initial Implementation Stage, including all ancillary charges necessary to place the subscription asset into service. Outlays in this stage generally should be capitalized as an addition to the subscription asset.
Operation and Additional Implementation Stage, including activities such as subsequent implementation activities, maintenance, and other activities for a government’s ongoing operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they meet specific capitalization criteria.
9 91
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 96 – Subscription-Based Information Technology Arrangements, (Continued) In classifying certain outlays into the appropriate stage, the nature of the activity should be the determining factor. Training costs should be expensed as incurred, regardless of the stage in which they are incurred.
If a SBITA contract contains multiple components, a government should account for each component as a separate SBITA or nonsubscription component and allocate the contract price to the different components. If it is not practicable to determine a best estimate for price allocation for some or all components in the contract, a government should account for those components as a single SBITA.
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information.
How the Changes in this Statement will Improve Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice.
Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.
Management Response: The City will review the applicability of this GASB and implement accordingly, if applicable.
10 92
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
2020-01: Internal Control Over Journal Entries
Journal entries are an important transaction cycle that affect all aspects of accounting and financial reporting. Journal entries should be reviewed by someone other than the prepare for accuracy before they are posted to the general ledger. The review and approval should be documented by a reviewer signing and dating that their review has been completed and the entry is approved.
During the interim phase of the audit, we selected 15 journal entries to test for segregation of duties an approval. This includes the reviewer being someone other than the preparer, and audit evidence which could signify someone other than the preparer reviewed the journal entries. Through our testing, we noted that 7 out of the 15 entries did not include audit evidence which could signify someone other than the preparer reviewed the journal entries.
Per conversation with City Staff, staffing shortages in the Finance Department did not allow for proper segregation of duties over journal entries.
Without proper review and approval of journal entries there is an increased likelihood that errors would go unnoticed.
We recommend the City continue to improve the reviewing process to ensure that all entries are reviewed by someone other than the preparer.
Current Year Status:
Beginning in August 2020, the City has implemented a second review of journals. All journals are reviewed by someone other than the preparer. Both the preparer and the reviewer each sign to maintain proper documentation for future audit review. Additionally, the city filled a long-term vacancy within the Finance department to better assist with separation of duties. 2020-02: Accurate Calculation of Permit Fees
Solar Permit fees should be calculated using the City’s Master Fee Schedule. Per review of the Master Fee Schedule, the Electrical Permit Fee portion will be calculated at a discounted of 70% of building permit fees. The Storm Drainage Developer Impact Fee will be calculated at $754 per unit.
During the interim phase of the audit, we selected 25 cash receipts for testing and noted the following:
Receipt Number 60878 in the amount of $927.67 included payment for Solar Permit B2019-32024. Per review of supporting documents, the City had incorrectly billed at the full electrical permit fee of $40 instead of the discounted rate of $12.
Receipt Number 61857 in the amount of $46,159.04 included payment for Building Permit B2019-32138.
Per review of supporting documents, the City had incorrectly billed at a rate of $745 for the storm drainage developer impact fee instead of the current year rate of $754.
The conditions listed above appears to be due to staff oversight.
The City is not charging its customers in accordance with the fees listed on the Master Fee Schedule. 11 93
CITY OF HALF MOON BAY
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
2020-02: Accurate Calculation of Permit Fees, (Continued) We recommend that the City implement procedures ensure that permit fees are calculated accurately and that all permits are reviewed and approved by a second person.
Current Year Status:
The City continues to make this a priority with recent integration of an ERP system. Additionally, the City filled a vacancy in the Finance department to better assist in a second review of cash receipts.
2019-04: Timely Submission of Quarterly Treasurer’s Reports California Government Code 53646(b)(1) states “The quarterly report shall be so submitted within 30 days following the end of the quarter covered by the report”. The City’s Investment Policy states the Treasurer’s Report must be submitted to the City Council within 45 days of end of each quarter. To be an effective control, the Treasurer’s Report should be completed and submitted to City Council within the period stipulated in the Investment Policy.
We noted the December 31, 2018 Treasurer’s Report was not submitted to City Council until April 2, 2019, which was 92 days after month end.
It appeared the overlook and delay were caused by the Finance’s understaffing.
Untimely submission of the Treasurer’s Report is not in compliance with either the City’s Investment Policy or California Code; In addition, the City’s investment policy should not be less restrictive than the California Government Code.
We recommend the City to update the Investment Policy to be consistent with the California Code, and submit the Treasurer’s Reports to City Council in a timely manner.
Current year status:
See current year comment 2021-02.
12 94
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Lisa Lopez, Administrative Services Director
Kenneth Stiles, Senior Accountant
TITLE: TREASURER’S REPORT FOR THE QUARTER ENDING DECEMBER 31, 2021 ______________________________________________________________________________ RECOMMENDATION:
By motion, accept the Treasurer’s Report for the quarter ending December 31, 2021.
FISCAL IMPACT:
There is no fiscal impact with the acceptance of this report.
STRATEGIC ELEMENT:
This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.
BACKGROUND:
In accordance with Government Code Section 53600 et seq., the City’s Treasurer is to provide the City Council with a report on investments on a quarterly basis. As shown in the Treasurer’s Report (Attachment 1), the City’s investments are in external investment pools listed at cost, as well as its fair value, not amortized cost, in compliance with Governmental Accounting Standard. The City’s investment practices strictly follow Government Code Section 53600 et seq., the City’s investment policy, and a prudent person’s rule.
DISCUSSION:
The City’s cash and investment portfolio, at fair market value, as of December 31, 2021 is $48 million of which $37.5 million is placed with the San Mateo County Treasurer’s Investment Pool and $7.8 million is placed with the State Controller’s Local Agency Investment Fund (LAIF), and $2.7 million in operating accounts with Wells Fargo Bank. The average weighted yield for the City’s cash and investments are 0.71 % for the quarter.
ATTACHMENT:
Treasurer’s Report for the quarter ending December 31, 2021. 95 City of Half Moon Bay
Treasurer's Report
December 31, 2021
Quarterly FYTD
City Fiscal Carrying Fair Quarterly Interest Interest
Treasury Agents Amount Value* Yield * Earnings Earnings Petty Cash $ 958 $ $ 958 $ 958
Wells Fargo Bank:
Checking 2,760,170 2,760,170 2,760,170
Payroll 17,991 17,991 17,991
California State Treasurer:
LAIF - General Fund 7,754,802 7,754,802 7,771,087 * 0.21% 4,719.23 4,719.23 San Mateo County Treasurer
SMCO Pool - General Fund 37,156,807 37,156,807 37,477,470 * 0.86% 82,750.95 82,750.95 U.S. Bank - Investment with Fiscal Agent (Note)
Escrow - B (US Agency Securities) - - 0 - -
Bonds - B (Money Market Mutual Fund) - - - - -
Reserve - B (LAIF) - - 0 - -
Refunding - B (LAIF) - - 0 - -
Refunding - B (Money Market Mutual Fund) - - 0 - -
TOTAL CASH AND INVESTMENTS $ 47,690,728 $ 0 $ 47,690,728 $ 48,027,676 $ 87,470 $ 87,470 Note: B designation refer to Judgment Obligation Bond Series B. In addition, U.S. Bank reserve accounts are primarily invested in LAIF. * Fair Value (GASB 31) includes investment returns which are not yet realized and at amortized costs. Information is obtained from individual institutions' portfolio statements.
2. Investment maturities:
Investments at December 31, 2021 mature as follows:
City Fiscal
Treasury Agents Total
Available immediately $ 47,690,728 $ 0 $ 47,690,728
Maturities less than one year 0 0
Maturities of one to five years
Maturities greater than five years
Total $ 47,690,728 $ 0 $ 47,690,728
3. Investments Sectors, as a percentage of total portfolio and also with investment performance comparisons:
Investment sectors as a % of total portfolio Investment performance comparisons Demand Deposits and Money Market 5.83% YTD
Local Agency Investment Fund 16.26% Date Total Yield Interest San Mateo Co. Investment Pool 77.91% 12/31/19 48,419,785 1.81% 268,048 Fiscal Agent 0.00% 12/31/20 46,058,527 0.95% 147,582
100.00% 12/31/21 48,027,676 0.71% 87,470
I certify that this reports all Government Agency pooled investments and is in conformity with the investment policy of the City of Half Moon Bay as stated in Resolution number C-2014-25 dated June 03, 2014. A copy of this Resolution is available at the office of the City Clerk and on the cities website http://www.hmbcity.com.
The Investment Program provides sufficient cash flow liquidity to meet the estimated expenditures of the next six months, as required by Code Section 53646.
Date
Date
1. Cash and investments were comprised of the following instruments as of December 31, 2021, shown with the carrying amount, fair value, and corresponding yields on investment and interest earnings:
Investment maturities may not exceed five years with the exception of investments as specified in bond debt covenants. Investment yield is ranked after safety and liquidity in making investment decisions.
The City limits market risk by limiting the types and maturities of its investments and by not borrowing against those investments.
Senior Accountant
Administrative Services Director
DocuSign Envelope ID: 634FAC4C-C03A-46FF-AB2E-C2A7A4BF2D2A 1/18/2022
1/18/2022
96 GENERAL FUND 14,081,233.77
RESTRICTED FUNDS
STORM DRAIN OPERATING FUND 351,423.56
TRAFFIC MITIGATION FUND 4,230,502.89
LIBRARY 16,932.72
MAIN STREET BRIDGE 508,156.52
GAS TAX 918,428.65
STREET AND ROAD FUND 1,474,687.92
MEASURE A FUND 1,358,884.45
PARK FACILITY DEVELOPMENT 2,389,139.95
AFFORDABLE HOUSING 2,164,294.63
PUBLIC FACILITIES 1,167,911.06
POLICE SPECIAL REVENUE 667,317.71
JOB-BOND PROCEED FD 0.96
MEASURE W FUND 340,352.51
LOT ACQUISITION/DEVELOPMENT 2,452,846.22
JOB - DEBT SERVICE FD 6,265.92
GEN FD CAPITAL PROJECTS 1,409,281.88
DRAINAGE FUND 1,041,094.28
LIBRARY CAPITAL 1,331,733.48
GENERAL LONG TERM DEBT -
SEWER FUNDS 7,792,495.24
VEHICLE REPLACEMENT 169,807.83
FURN/FIXT & EQUIP FUND 383,709.54
RISK MANAGEMENT 3,012,451.77
RETIREMENT STABILIZATION 421,774.14
TOTAL, RESTRICTED FUNDS 33,609,493.83
GENERAL LEDGER (BOOK) TOTAL 47,690,727.60
BANK BALANCES ON 12/31/2021
WELLS FARGO GENERAL CHECKING 2,881,694
WELLS FARGO PAYROLL CHECKING 17,991
LOCAL AGENCY INVESTMENT FUND (LAIF) 7,754,802
SAN MATEO COUNTY INVESTMENT POOL 37,156,807
Add: PETTY CASH ACCOUNTS 957.93
RECONCILING ITEMS (421.45)
Less: OUTSTANDING CHECKS (127,749.15)
Plus: DEPOSITS IN TRANSIT 6,646.77
Plus: VOID CHECKS -
BANK RECONCILIATION TOTAL 47,690,727.60
CITY OF HALF MOON BAY
CASH AND INVESTMENTS REPORT
FOR QUARTER ENDING 12/31/2021
DocuSign Envelope ID: 634FAC4C-C03A-46FF-AB2E-C2A7A4BF2D2A 97
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Lisa Lopez, Administrative Services Director
Kenneth Stiles, Senior Accountant
TITLE: QUARTERLY FINANCIAL REPORT FOR THE SECOND QUARTER OF FISCAL YEAR 2021-22
______________________________________________________________________________ RECOMMENDATION:
Accept the Quarterly Financial Report for the 2
nd Quarter of Fiscal Year 2021-22.
FISCAL IMPACT:
There is no fiscal impact with the acceptance of this report.
STRATEGIC ELEMENT:
This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.
BACKGROUND:
One of the City Council strategic priorities includes planning for and implementing long-term financial stability. A key component of this goal includes preparing a quarterly financial report that would provide readers with an executive summary of the City’s current financial conditions as it relates to the annual operating budget to ensure accountability and transparency in managing public funds.
DISCUSSION:
As stated in the attached report, although revenues have and will continue to be impacted due to COVID-19, the fiscal condition of the City appears to be better that what was initially anticipated in May 2019. With the information available, staff holds no great concern for financial stability for the current fiscal year; however, will continue to monitor any changes that may impact the City. In addition, although revenues are performing well, staff recommends any adjustments to be formally done at the mid-year presentation.
ATTACHMENT:
Second Quarter Financial Report as of December 31, 2021. 98 CITY OF HALF MOON BAY
Quarterly Financial Report
December 31, 2021 – 50% of Year Complete
Prepared By:
Administrative Services Department
99 Funds Actual % of Budget Actual % of Budget
General Fund 9,337,933 51% 7,101,269 37.2%
Special Revenue Funds 1,510,168 22% 2,475,509 25.9%
Sewer Operations 2,549,500 38% 2,788,513 41.7%
Sewer Capital 140,071 56% 1,015,173 21.4%
Internal Service Funds 13,779 1% 624,816 37.7%
Pension Stabilization Fund 1,276 0% 1,041,748 100.0%
TOTAL FOR ALL FUNDS 13,552,726 39% 15,047,028 35.2%
Revenues Expenditures
0% 20% 40% 60% 80% 100%
General Fund
Special Revenue Funds
Sewer Operations
Sewer Capital
Internal Service Funds
Revenue & Expenditure Summary
Revenues to Budget Expenditures to Budget
100
Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Transient Occupancy Tax 6,233,631 3,263,623 52% $ 1,909,423 40% Property Taxes 3,600,342 1,694,428 47% $ 1,739,355 48%
Sales & Use Tax 2,983,400 1,036,637 35% $ 974,892 35%
Franchise Tax 825,000 171,359 21% $ 161,574 23%
Business License Tax 281,916 257,371 91% $ 234,781 78%
Charges for Services 1,565,601 1,031,757 66% $ 957,230 47% Interest and Investment 120,016 21,949 18% $ 32,955 -252% Other Revenues 2,217,202 1,860,611 84% $ 1,488,847 80%
Transfers in 511,395 - 0% $ - 0%
TOTAL 18,338,503 9,337,735 51% 7,499,056 45%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Transient Occupancy Tax
Property Taxes
Sales & Use Tax
Franchise Tax
Business License Tax
Charges for Services
Interest and Investment
General Fund Revenue Summary
Revenues to Budget
50%
101
Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Administrative Services 1,142,848 515,897 45% 486,467 $ 46% City Clerk / Communications 956,965 354,593 37% 347,895 $ 48% City Council 215,739 56,895 26% 56,821 $ 38%
City Managers Office 7,048,315 3,466,946 49% 3,109,320 $ 48% Community Development 1,609,470 750,257 47% 671,191 $ 47% Public Works 3,274,129 1,320,213 40% 1,278,804 $ 47%
Debt Service 1,371,686 636,590 46% 286,343 $ 0%
Non-Departmental - 75 8,144 $ 0%
Operating Transfers 1,871,542 - 0% - $ 0%
Capital Transfers 1,603,200 - 0% - $ 0%
TOTAL 19,093,894 7,101,467 37.2% 6,244,983 39%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Administrative Services
City Clerk / Communications
City Council
City Managers Office
Community Development
Public Works
Debt Service
Capital Transfers
General Fund Expenditure Summary
Expenditures to Budget
50%
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GENERAL FUND ANALYSIS:
The General Fund is the primary operating fund of the City and is used to account for most operating activities. Table 1 below provides year-to-date through the second quarter comparable data for the current fiscal year and the prior year.
Through the second quarter, the city received $9.3 million of revenues for the fiscal year.
Revenues have generally increased due to the receipt of the ARPA funds. While last year revenues were 45%, current fiscal year revenues are 51% of budget.
Expenditures through the second quarter total $7.1 million. Although higher than the prior year, the increase is due to the return of spending after a COVID impacted year. Expenditures are tracking at 37% of budget.
Approved
Budget
Actuals as of
12/31/2021
% of
Budget
Final
Actuals
Actuals as of
12/31/2020
% of
Actuals
Revenues
Transient Occupancy Tax 6,233,631 3,263,623 52% 4,817,532 1,909,423 40% Property Taxes 3,600,342 1,694,428 47% 3,586,408 1,739,355 48% Sales & Use Tax 2,983,400 1,036,637 35% 2,763,035 974,892 35% Franchise Tax 825,000 171,359 21% 707,353 161,574 23%
Business License Tax 281,916 257,371 91% 301,754 234,781 78% Charges for Services 1,565,601 1,031,757 66% 2,039,910 957,230 47% Interest and Investment 120,016 21,949 18% (13,081) 32,955 -252% Other Revenues 2,217,202 1,860,611 84% 1,869,968 1,488,847 80% Transfers in 511,395 - 0% 528,923 - 0%
Total Revenues 18,338,503 9,337,735 51% 16,601,802 7,499,056 45% Expenditures
Administrative Services 1,142,848 515,897 45% 1,055,027 486,467 46% City Clerk / Communications 956,965 354,593 37% 721,317 347,895 48% City Council 215,739 56,895 26% 149,669 56,821 38%
City Managers Office 7,048,315 3,466,946 49% 6,431,717 3,109,320 48% Community Development 1,609,470 750,257 47% 1,413,980 671,191 47% Public Works 3,274,129 1,320,213 40% 2,698,276 1,278,804 47% Debt Service 1,371,686 636,590 46% - 286,343 Non Departmental - 75 257,489 8,144 Operating Transfers 1,871,542 - 0% 1,789,178 - 0% Capital Transfers 1,603,200 - 0% 1,578,601 - 0%
Total Expenditures 19,093,894 7,101,467 37.2% 16,095,254 6,244,983 39% FY 2021-22 FY 2020-21
Table 1: Second Quarter Budget to Actual Comparison
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Revenues
Table 2 below shows a year-to-date summary of actual revenues through the second quarter for fiscal years 2021-22 and 2020-21.
Transient Occupancy Tax: The City has received $3.2 million through the second quarter. This is an increase of $1.3 million from the prior year. The increase in revenue is due to the strong recovery of tourism, a recent increase to the TOT tax rate as approved by voters, and the recent receipt of County funds for the purchase of a hotel.
This revenue stream is at 52% of budget compared to the prior year’s 40%, signaling a potential overperformance.
Property Taxes: Most property tax funds are received in December and April. $1.6 million in revenues have been received thus far. Property taxes are at 47% of budget as compared to the prior year’s 48%.
Sales & Use Taxes: The City received $1 million of sales taxes. This is a small increase of $61 thousand from the prior year. This category is tracking as anticipated.
All other revenues: The City received $1.8 million in other revenues. This category generally includes miscellaneous, non-material, or one-time funds. The increase in this category is mostly due to the receipt of $1.5 million in ARPA funds. Initially the City budgeted $1.2 million for ARPA funds, staff intends to formally appropriate the excess funds received during the mid-year review.
Approved
Budget
Actuals as of
12/31/2021
% of
Budget
Actuals as of
12/31/2020
% of
Actuals
Revenues - Transient Occupancy Tax 6,233,631 3,263,623 52% 1,909,423 40% Property Taxes 3,600,342 1,694,428 47% 1,739,355 48%
Sales & Use Tax 2,983,400 1,036,637 35% 974,892 35%
Franchise Tax 825,000 171,359 21% 161,574 23%
Business License Tax 281,916 257,371 91% 234,781 78%
Charges for Services 1,565,601 1,031,757 66% 957,230 47% Interest and Investment 120,016 21,949 18% 32,955 -252% Other Revenues 2,217,202 1,860,611 84% 1,488,847 80%
Transfers in 511,395 - 0% - 0%
Total Revenues 18,338,503 9,337,735 51% 7,499,056 45%
FY 2021-22 FY 2020-21
Table 2: Second Quarter Revenues
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Expenditures
Table 3 below shows a summary of second quarter budget-to-actual revenues for fiscal years 2021-22 and 2020-21.
General fund expenditures through the first quarter total $7.1 million or 37% of budget.
Operating expenditures are tracking as anticipated.
Budget Adjustments
Table 4 below shows a summary of council actions with potential budgetary effects during the second quarter not reflected in the numbers above.
Approved
Budget
Actuals as of
12/31/2021
% of
Budget
Final
Actuals
Actuals as of
12/31/2020
% of
Budget
Expenditures
Administrative Services 1,142,848 515,897 45% 1,055,027 486,467 46% City Clerk / Communications 956,965 354,593 37% 721,317 347,895 48% City Council 215,739 56,895 26% 149,669 56,821 38%
City Managers Office 7,048,315 3,466,946 49% 6,431,717 3,109,320 48% Community Development 1,609,470 750,257 47% 1,413,980 671,191 47% Public Works 3,274,129 1,320,213 40% 2,698,276 1,278,804 47% Debt Service 1,371,686 636,590 46% - 286,343 Non-Departmental - 75 257,489 8,144 Operating Transfers 1,871,542 - 0% 1,789,178 - 0% Capital Transfers 1,603,200 - 0% 1,578,601 - 0%
Total Expenditures 19,093,894 7,101,467 37.2% 16,095,254 6,244,983 39% Table 3: Second Quarter Expenditures
FY 2021-22 FY 2020-21
Item Major Funding Source Total Fiscal Impact GF Impact No Budgetary Adjustments During the Second Quarter
Total - $ - $
Table 4: Budget Adjustments
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Conclusion
Table 5 below shows an updated summary of general fund balances for the current fiscal year.
With the completion of a stronger than expected 2020-21 fiscal year, the City’s financial position is strong with $1.7 million in unassigned funds. Best practices include formal assignment of these funds to be done during the mid-year review presentation.
Additionally, with the strong fully funded reserves, the City is optimistic regarding the financial stability for the current fiscal year; however, we will continue to monitor any changes that may impact the City.
FY2021-22
Revised
Beginning Fund Balance 11,140,700
Revenues 18,338,503
Expenditures (19,093,894)
Budget Adjustments -
Net Change to Fund Balance (755,390)
Ending Fund Balance 10,385,310
Operating Contingency (5,185,402)
Economic Uncertainty (3,456,935)
Unassigned 1,742,973
Table 5: General Fund Balance Summary
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: February 1, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: John Doughty, Public Works Director
TITLE: BUILDING ELECTRIFICATION ORDINANCE
______________________________________________________________________________ RECOMMENDATION:
Conduct a public hearing, waive first reading, and introduce an ordinance adopting a new chapter 14.06 to the Half Moon Bay Municipal Code entitled “Electrification of Buildings.” FISCAL IMPACT:
Staff has estimated the direct fiscal impact of ordinance adoption to be approximately $100,000. This cost is associated with the initial construction of the new all electric corporation yard. These costs will eventually be offset by use of solar energy. There will be some additional costs of administration, but these costs will be absorbed by the operating budgets of Community Development and Public Works.
As with any other major policy initiative, preparation of this Ordinance represents a significant commitment of time and effort. We estimate that the City has spent approximately 1,000 total staff hours to research and prepare the Ordinance. These costs have been borne by the City’s General Fund.
STRATEGIC ELEMENT:
This action supports the Infrastructure and Environment and Healthy Communities and Public Safety Elements of the Strategic Plan.
BACKGROUND:
The City Council conducted a community study session on building electrification policy opportunities on February 2, 2021. Following community input, the City Council directed staff to prepare a draft ordinance that addressed the following policy areas:
1. No new Fuel Gas hookups; all new construction (residential and commercial) must be built all-electric
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2. Any appliance that is replaced within an existing building must be replaced with an electric alternative
3. All Fuel Gas lines must be capped and/or decommissioned by January 1, 2045 A draft ordinance was prepared and released on April 22, 2021. Consistent with Council direction, the City initiated a robust public outreach effort between its release and September 15, 2021.
On September 21, 2021, the City Council conducted a study session to receive a report on community feedback on the draft ordinance. Due to extensive public comment and City Council discussion, the item was continued to October 5th for additional review and direction. During the October 5, 2021 Study Session, staff held a guided discussion with the City Council to address policy decision points necessary to update the draft ordinance and ready the document for introduction.
The City Council held a Public Hearing on November 16, 2021 in anticipation of introduction of the proposed Building Electrification Ordinance. The draft ordinance included edits based on direction from previous Study Sessions. More than 80 public comments at the hearing represented both support and opposition for the proposed ordinance. Following the public comment, City Council directed staff to make additional edits and continued the introduction of the proposed Ordinance to December 7, 2021.
On December 7, 2021, the City Council conducted a public hearing. Upon receipt of public comment and closing of the public hearing, the City Council introduced the revised ordinance and authorized the City Clerk to notice second reading and adoption for December 21, 2021.
On December 21, 2021, the ordinance was pulled from the Consent Agenda. Following public comment and extensive Council deliberation, the City Council voted 3-2 to not adopt the Electrification Ordinance. The vote included direction to staff to return to City Council with a revised Electrification Ordinance focused on “New Construction”.
For more information and background on this building electrification policy, please refer to the staff reports published for the February 2, 2021 Study Session, September 21, 2021 Study Session, October 5, 2021 Study Session, the November 16, December 7 and December 21, 2021 City Council Meetings. Links to all staff reports, attachments, staff presentations, and an FAQ on the proposed ordinance can also be found on the City’s Building Electrification Webpage.
DISCUSSION:
In response to the City Council direction, Staff has updated the draft Electrification Ordinance to focus on “New Construction”. An overview of the provisions and Table summary follow:
1. New Construction Only. The ordinance no longer includes provisions related to remodel construction or replacement of fuel gas appliances in existing buildings. The Ordinance proposes to retain prior introduced provisions that require all new residential and non108
residential construction to be “All-Electric”. City staff will strongly encourage pre-wiring of remodels and excepted ADUs, but will not mandate all-electric.
New Construction Exceptions: The draft ordinance retains exemptions for Junior Accessory Dwelling Units (ADUs) and Attached ADU’s to eliminate conflict with prior remodel/burnout provisions.
2. “In-Process” Applicants for New Construction. Previously the City Council requested that staff include some flexibility for owners who may have invested in building plans and/or are in the process of applying for permits for any new Mixed-Fuel buildings prior to the ordinance introduction. Staff has retained the previously introduced provisions providing “in-process” applicants some flexibility to proceed with the construction of a Mixed-Fuel Building so long as the applicant Electrically Pre-Wires for future electric appliances and receives all necessary building permits before January 1, 2023.
3. Conversion to Mixed Fuel Buildings. The City Council previously directed that the electrification ordinance preclude the conversion of an All-Electric” building or unit to a mixed fuel building. Based upon direction given December 21, 2021, staff retained these provisions. The draft ordinance precludes the conversion of an All-Electric to Mixed-Fuel residence immediately upon effective date of the ordinance and no later than January 1, 2045 for non-residential and mixed use buildings. Non-Residential and Mixed-Use timing was the subject of significant deliberation and the City Council may wish to re-consider this issue in light of the transition away from remodel applicability.
Prior versions included a delay in applicability of prohibition to January 1, 2025.
4. Termination of Gas Service. The draft ordinance includes provisions for terminating natural gas service to existing buildings by January 1, 2045. As noted previously, the provision would not affect mobile home parks that fall under State of California jurisdiction. Further, the City cannot preclude the conveyance of natural gas to areas outside of the City limits.
5. Greenhouses exemptions. During the public process, greenhouse owners/operators/employees made impassioned pleas to exempt greenhouses from the ordinance due to their unique operating conditions and critical economic benefit to the local economy. The December 7, 2021 draft ordinance included an exemption for existing greenhouses until January 1, 2030. The exemption was primarily in response to the ordinance applicability to remodels of existing buildings. In light of the removal of the remodel provisions, staff is recommending an exemption for all greenhouses (new or remodel) through January 1, 2045. This represents a change from prior direction which the City Council may wish to discuss.
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6. Other exemptions. The draft ordinance retains two major exemptions from the prior drafts. First, the ordinance allows the Sewer Authority Mid-Coastside Sewer Plant to operate utilizing natural gas until January 1, 2045. Secondly, the ordinance includes the exceptions for propane to serve small, portable appliances outside the building.
Summary of Ordinance Provisions
Title Description Effective Date Location in
Draft
Requirement for All-Electric
Newly Constructed Buildings
All newly constructed buildings must
be built using all-electric design
30 days after
Ordinance
adoption
14.06.030
Conversion to Mixed-Fuel
Buildings Prohibited (Residential)
No existing All-Electric Residential
Buildings may be converted to a
Mixed-Fuel Building
30 days after
Ordinance
adoption
14.06.040(A)
Conversion to Mixed-Fuel
Buildings Prohibited (NonResidential)
No existing All-Electric Nonresidential buildings may be converted to a Mixed-Fuel Building
January 1, 2045 14.06.040(B)
Termination of Gas Services All gas lines must be capped and/or decommissioned by January 1, 2045
January 1, 2045 14.06.050
Exemption: Commercial
Greenhouses
Commercial Greenhouses are
exempt from provisions until January
1, 2045.
Expires January
1, 2045
14.06.060(A)
Exemption: Wastewater
Treatment Facilities
Wastewater Treatment Facilities are
exempt from Ordinance until 2045.
Expires January
1, 2045
14.06.090(B)
Exemption: Portable Propane Use
Outside of Building Envelope
Portable propane appliances outside
of building envelope are exempt
from Ordinance.
N/A 14.06.090(D)
Next Steps
If there is consensus to proceed with the ordinance, as presented, the ordinance can be introduced with second reading (adoption) scheduled for the City Council meeting on February 15, 2022. If the Ordinance is adopted on February 15, 2022, the Building Electrification Ordinance would become effective thirty days later (March 17, 2022).
ATTACHMENT:
Ordinance
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ORDINANCE NO. C-2022-____
ORDINANCE AMENDING THE HALF MOON BAY MUNICIPAL CODE TO ADD A NEW CHAPTER
14.06 TO TITLE 14 ENTITLED “ELECTRIFICATION OF BUILDINGS” THE COUNCIL OF THE CITY OF HALF MOON BAY DOES ORDAIN AS FOLLOWS:
Section 1. Findings. The City Council of the City of Half Moon Bay hereby adds a new Chapter 14.06 (“Electrification of Buildings”) to Title 14 of the Half Moon Bay Municipal Code.
The City Council finds and declares as follows:
(a) Health and Safety Code Section 18941.5, with reference to Section 17958.7, allows for more restrictive local amendments to the current California Building Standards Code (“Building Codes”) that are reasonably necessary because of local climatic, geological, or topographical conditions.
(b) The Half Moon Bay City Council expressly declares that these proposed amendments to the Building Codes are reasonably necessary because of local climatic, topographical, and geological conditions, and hereby adopts the findings of reasonable necessity as set forth in Attachment A accompanying this ordinance.
(c) Express findings that these modifications to the Building Codes are reasonably necessary are hereby made and will be filed with the California Building Standards Commission in accordance with California Health and Safety Code Section 17958.7 before this ordinance takes effect.
(d) Failure to address and significantly reduce greenhouse gas emissions could result in rises in sea level that could put at risk Half Moon Bay homes and businesses, public facilities, and portions of major local and regional transportation infrastructure. (e) Due to changes in rainfall patterns expected with climate change, the City of Half Moon Bay is likely to be subject to more severe weather events, including droughts as well as more intense storms that increase the risks of, and have actually resulted in, extreme wildfires, erosion, overland local flooding and landslides.
(f) It is expected that climate change will result in further severe and frequent extreme heat events, intensifying local heat islands and putting vulnerable populations at health risk, which has already occurred at unprecedented levels with sea level rise and widespread wildfires in the area.
(g) In 2016, the State of California enacted Senate Bill (SB) 32 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by 2030. 111
(h) In 2018, Governor Brown signed Executive Order (EO) B-55-18 which calls for California to achieve carbon neutrality as soon as possible, and no later than 2045. (i) The City of Half Moon Bay is preparing its Climate Action and Adaptation Plan to, at minimum meet State emissions goals established in SB32 and EO B-55-18. (j) Based upon the latest available data, 48 percent of Half Moon Bay’s local greenhouse gas emissions came from buildings, with 80 percent of that total coming from onsite Fuel Gas combustion.
(k) The City Council has identified electrifying buildings as a necessary strategy to achieve the City’s 2030 and 2045 greenhouse gas reduction targets. (l) Half Moon Bay primarily receives electricity from Peninsula Clean Energy, whose electricity portfolio is 100% carbon free as of January 2021, prioritizing local renewable generation and local green jobs development.
(m) Onsite Fuel Gas combustion is known to lead to elevated levels of harmful indoor air pollutants that disproportionately affect frontline communities, including people of color, immigrants, indigenous communities, low-income people, those with disabilities, and the unhoused.
(n) The indoor air pollutants that arise from onsite Fuel Gas combustion have been shown to contribute to respiratory ailments such as asthma, such that children living in homes with gas cooking are 42 percent more likely to have asthma.
(o) Fuel Gasinfrastructure and pipelines contribute to the risk of fires and explosions such as the 2010 San Bruno pipeline explosion, with the risk magnified in cases of major earthquakes. (p) Climate disruption is being fueled by the burning of fossil fuels, including “natural gas,” oil, and coal, and the disruption is already having devastating impacts on those who can least afford it and are least responsible for the problem.
(q) Requiring all newly constructed buildings to be all-electric will create the groundwork for clean energy technologies to proliferate and become cost-competitive and provide the impetus for workforce development in clean energy technologies and building electrification retrofits.
(r) Highly efficient buildings enhance Half Moon Bay’s public health, welfare, and resiliency by promoting environmental and economic health and safety through the design, construction, maintenance, and operation of buildings.
(s) It is reasonably necessary to require buildings to produce renewable, low-carbon electricity and to reduce energy consumption through efficient design in order to reduce the 112
effects of climate change (which have already been experienced locally through sea level rise and wildfires), reduce regional pollution, improve overall safety, and improve resilience to climate change.
(t) Costs for all-electric new construction have been shown to be on par with or less than those for mixed-fuel construction in the Half Moon Bay climate zone. (u) On February 2, 2021, the City Council conducted a study session on Building Electrification and directed staff to prepare a draft ordinance for consideration by the community and City Council.
(v) The requirements specified in this Ordinance were the subject of stakeholder outreach from June through September 2021, including public meetings and individual stakeholder interviews.
(w) On September 25 and October 5, 2021, the City Council conducted additional study sessions to provide policy guidance on the draft Building Electrification ordinance. (x) Half Moon Bay can help lead the climate change movement by implementing climate solutions to benefit all people in our community, particularly those that have been disadvantaged by air pollution and other environmental harms in our most vulnerable communities.
Section 2. Addition of Chapter 14.06 to Title 14 of the HALF MOON BAY Municipal Code.
The Half Moon Bay Municipal Code is hereby amended with the addition of Chapter 14.06, “Electrification of Buildings,” which is adopted as set forth in Attachment B. Attachment B of this Ordinance is incorporated herein in its entirety.
Section 3. Severability. If any section, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council herby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 4. California Environmental Quality Act. The City Council finds that this Ordinance is exempt from CEQA under CEQA Guidelines section 15061(b)(3) on the grounds that the standards contained therein are more stringent than those set forth in the State Building Standards Code, and as a result there are no reasonably foreseeable adverse impacts or possibility that the activity in question may have a significant effect on the environment. Given Half Moon Bay’s clean energy sources, this Ordinance’s provisions requiring a shift from fuel gas to electricity will not have any significant effect on the environment. In particular, all Half Moon Bay energy customers are automatically enrolled in the Peninsula Clean Energy (PCE) EcoPlus 113
Service, which provides 100% Carbon Free Electricity. PCE generates electricity from 50% renewable sources, and all customers may opt into PCE’s Eco100 tier, which generates energy from 100% renewable sources. There is no reasonable possibility that increasing the City’s reliance on these clean and renewable energy sources could have a significant effect on the environment. The Ordinance is also exempt from CEQA under CEQA Guidelines section 15308, because it is a regulatory action for the protection of the environment. The foregoing determination is made by the City Council in its independent judgment.
Section 5. Publication. The City Clerk of the City of Half Moon Bay is hereby directed to publish this Ordinance, or the title hereof as a summary, pursuant to Government Code Section 36933, once within fifteen (15) days after its passage in the Half Moon Bay Review, a newspaper of general circulation published in the City of Half Moon Bay.
Section 6. Effective date. This Ordinance shall take effect and be in force on the thirtieth (30th) day from and after its final passage.
INTRODUCED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the 1st day of February, 2022.
ADOPTED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the ___ day of ______, 2022, by the following vote:
Ayes, Councilmembers:
Noes, Councilmembers:
Absent, Councilmembers:
Abstain, Councilmembers:
ATTEST:
___________________________ _______________________
Jessica Blair, City Clerk Debbie Ruddock
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Attachment A
Section 1. Findings: The City Council hereby finds the following facts to be true:
A. Scientific evidence has established that natural gas combustion, procurement and transportation produce significant greenhouse gas emissions that contribute to global warming and climate change;
B. On June 18th, 2019, the Half Moon Bay City Council adopted a climate emergency declaration, calling for a mobilization effort to end citywide greenhouse gas emissions as quickly as possible;
C. The City of Half Moon Bay is preparing its Climate Action and Adaptation Plan to, at minimum meet State emissions goals established in SB32 and EO B-55-18; and D. The additions and modifications to the California Building Standards Code listed below are reasonably necessary because of the following local climatic, geologic, and topographical conditions:
1. The City limits of Half Moon Bay includes and borders areas that are considered by the State Fire Hazard Severity zone mapping system to be of High and Very High fire hazard. As such, the City is extremely vulnerable to wildfires. Human activities releasing greenhouse gas into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasons, all of which have the potential to affect Half Moon Bay;
2. Half Moon Bay is within the Coastside Fire Protection District, which is located within a high activity seismic Zone 4. The San Andreas Fault, as well as faults that are not fully charted, are within immediate boundaries of the District. The seismic geological conditions present a very severe potential for multiple fires, major breakage of water mains, major breakage of natural gas mains, multiple electrical power failures, multiple collapsed structures, large number of calls for emergency medical aid, all of which may occursimultaneously during a seismic event;
3. In the event of a natural disaster such as earthquake or fire, the natural gas infrastructure in and around the City of Half Moon Bay presents risks to the life and safety of residents and first responders. Moreover, the electric grid system can be brought back online more swiftly than the natural gas pipeline when the community is recovering from such an event;
4. Half Moon Bay is situated along the Pacific Coastline and the potential impacts of sea level rise are anticipated to increase the City’s exposure to shoreline hazards.
Human activities releasing greenhouse gas into the atmosphere contribute to sea level rise. Rising sea levels are likely to affect the amount of area in the City at risk of coastal flooding, the rate of erosion along the shoreline and bluffs, the area of the City’s tsunami inundation zone, and potential seawater intrusion into riparian systems and groundwater supplies. Loss of shoreline due to rising waters may also 115
threaten the stability of coastal habitats, recreation areas, public access, and infrastructure; and
5. It is reasonably necessary to require buildings to produce renewable, low-carbon electricity and to reduce energy consumption through efficient design in order to reduce the effects of climate change (which have already been experienced locally through sea level rise and wildfires), reduce regional pollution, improve overall safety, and improve resilience to climate change.
Based on the above facts, the City Council finds that Half Moon Bay’s local, geological, topographical, and climatic conditions require amendments to the California Building Standards Code to establish more restrictive conditions to reduce greenhouse gas emissions in new buildings, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas as summarized in the matrix included hereto in Section 2.
Section 2. Matrix of Justifications.
Matrix of Justifications for Electrification of Buildings (Half Moon Bay Municipal Code Chapter 14.06) Half Moon Bay Municipal Code
Section(s)
Title Justification
(see Section 1)
14.06.030 Requirement for All-Electric Newly Constructed Buildings
1-5
14.06.040 Prohibition on Conversion to Mixed-Fuel Buildings 1-5
14.06.050 Termination of Gas Services 1-5
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Attachment B
Chapter 14.06 is hereby added to Title 14 of the Half Moon Bay Municipal Code to read as follows:
Chapter 14.06 ELECTRIFICATION OF BUILDINGS
Sections
14.06.010—Title
14.06.020—Definitions
14.06.030—Requirement for All-Electric Newly Constructed Buildings
14.06.040—Prohibition on Conversion to Mixed-Fuel Buildings
14.06.050—Termination of Gas Service
14.06.060—Exceptions
14.06.070—Periodic Review
14.06.080—Violations
14.06.010 Title
This chapter shall be known as “Electrification of Buildings.”
14.06.020 Definitions
A. “Accessory Dwelling Unit” shall have the same meaning as specified in Section 18.02.040 of the Half Moon Bay Municipal Code.
B. “All-Electric Building” or “All-Electric Design” is a building or building design that uses a permanent supply of electricity as the source of energy for all space heating, water heating (including pools and spas), cooking appliances, and clothes drying appliances, and has no Fuel Gas plumbing installed in the building.
C. “All-Electric Conversion” shall mean the conversion of a Mixed-Fuel building to a building that uses a permanent supply of electricity as the source of energy for all space heating, water heating (including pools and spas), decorative uses and lighting, cooking appliances, clothes drying appliances, and in which any previously existing Fuel Gas plumbing connection is capped or decommissioned.
D. “Building” shall have the same meaning as specified in Section 18.02.040 of the Half Moon Bay Municipal Code. Notwithstanding that definition, for purposes of this ordinance, “Building” does not include mobile homes or manufactured homes, pursuant to Health & Safety Code §§ 18015, 18030.5, and 18300(a).
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E. “Commercial Greenhouse” shall have the same meaning as specified in Section 18.02.040 of the Half Moon Bay Municipal Code.
F. “Dwelling Unit” shall have the same meaning as specified in Section 18.02.040 of the Half Moon Bay Municipal Code.
G. “Electrically Pre-Wire" shall mean to install necessary electrical components to permit future conversion to electric appliances. The required Pre-Wiring measures shall include the following:
a. A dedicated circuit, phased appropriately, for each appliance, with a minimum amperage requirement for a comparable electric appliance (see manufacturer’s recommendations) with an electrical receptacle or junction box that is connected to the electric panel with conductors of adequate capacity, extending to within 3 feet of the appliance and accessible with no obstructions. Appropriately sized conduit may be installed in lieu of conductors;
b. Both end of the conductor or conduit shall be labeled with the words “For Future Electric appliance” and be electrically isolated; c. A circuit breaker shall be installed in the electrical panel for the branch circuit and labeled for each circuit (i.e., “For Future Electric Range”) and;
d. All electrical components, including conductors, receptacles, junction boxes, or blank covers related to this section shall be installed in accordance with the California Electric Code.
H. “Fuel Gas” shall be as defined in the California Plumbing Code Section 208.0 and the California Mechanical Code Section 208.0.
I. “Junior Accessory Dwelling Unit” means a unit as defined in California Government Code Section 65852.22.
J. “Mixed-Fuel Building” means a building that uses Fuel Gas as fuel for space heating or cooling, exterior heating, decorative uses or lighting, water heating (including pools and spas), cooking appliances, clothes drying appliances, or onsite generation of electricity (except where primarily fueled by onsite digestion of organic material).
K. ”Mixed-Use Building” shall have the same meaning as specified for “Mixed Use” in Section
18.02.040 of the Half Moon Bay Municipal Code.
L. “Newly Constructed Building” is a building that has never before been used or occupied for any purpose.
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M. “Non-Residential Building” shall have the same meaning as specified in the California Energy Code Section 100.1.
N. “Residential Building” means a building in which sleeping accommodation is provided for normal residential purposes and includes one or more family dwellings, including private garages of such buildings. For purposes of this ordinance, “Residential Building” does not include mobile homes or manufactured homes, pursuant to Health & Safety Code §§ 18015, 18030.5, and 18300(a).
14.06.030 Requirement for All-Electric Newly Constructed Buildings Newly Constructed Buildings shall meet the definition of an All-Electric Building and shall be designed using an All-Electric Design.
Exceptions:
1. Development projects for which all building and related permits have been issued and remain valid prior to January 1, 2023. These projects may be constructed as MixedFuel Buildings; however, they must be Electrically Pre-Wired for future electric appliances in any location where a Fuel Gas appliance is installed.
2. New and existing Accessory Dwelling Units and Junior Accessory Dwelling Units that are attached or wholly within an existing Mixed-Fuel Residential Building may utilize Fuel Gas appliances.
3. This section shall not apply to development projects that have obtained vested rights pursuant to state law prior to the effective date of this Ordinance.
14.06.040 Prohibition on Conversion to Mixed-Fuel Buildings A. Residential Buildings. No existing All-Electric Building may be converted into a Mixed-Fuel Building on or after the effective date of this Chapter.
B. Non-Residential and Mixed-use Buildings. No existing All-Electric Building may be converted into a Mixed-Fuel Building on or after January 1, 2045.
14.06.050 Termination of Gas Service
No later than January 1, 2045, all buildings within Half Moon Bay shall be All-Electric Buildings or All-Electric Conversions and all Fuel Gas plumbing lines shall be capped and/or decommissioned.
14.06.060 Exemptions
A. Commercial Greenhouses shall be exempt from this Chapter until January 1, 2045.
B. Wastewater Treatment Facilities shall be exempt from this Chapter until January 1, 2045. 119
C. Fuel gas generators shall be exempt from the Chapter until January 1, 2045.
D. The requirements of this Chapter shall not apply to the use of portable propane appliances for use outside of the building envelope, such as outdoor cooking and outdoor heating appliances.
14.06.100 Infeasibility Waiver
A. Waiver. If an applicant for a permit for a Newly Constructed Building believes that physical or technical circumstances exist that make it technically or physically infeasible to meet the requirements of this Chapter in part or in whole, the applicant may request an infeasibility waiver as set forth below. Financial considerations alone shall not be a sufficient basis for technical or physical infeasibility. In applying for an exemption, the burden is on the Applicant to show infeasibility.
B. Application Process. An applicant may apply for an infeasibility waiver by submitting a written letter of justification for an infeasibility waiver as early as practicable. Where the project involves issuance of a Coastal Development Permit (CDP) the waiver request shall be filed concurrently and considered concurrently with the CDP. The applicant shall indicate in their letter of justification the maximum threshold of compliance he or she believes is feasible for the project and the circumstances that make it infeasible to fully comply with this Chapter. Circumstances that constitute infeasibility include, but are not limited to the following:
1. There is conflict with another City regulation, such as those requiring historic preservation;
2. There is a lack of commercially available materials, appliances, and/or technologies to comply with the requirements of this Chapter;
3. Applying the requirements of this Chapter would effectuate an unconstitutional interference.
C. Review of Exemption. Where the City Manager or his/her designee determines that it is infeasible for the applicant to fully meet the requirements of this Chapter based on the information provided, the City Manager or his/her designee shall determine the maximum feasible threshold of compliance reasonably achievable for the project and condition the approval accordingly. The decision of the City Manager or his/her designee shall be provided to the applicant in writing. If an exemption is granted but the City Manager or his/her designee determines that the applicant can still achieve a certain threshold of compliance, the applicant shall be required to comply with this Chapter in all other respects and shall be required to achieve, in accordance with this Chapter, the 120
threshold of compliance determined to be achievable by the City Manager or his/her designee.
D. Final Determination. If the City Manager or his/her designee determines that it is reasonably possible for the applicant to fully meet the requirements of this Chapter, the request for an exemption shall be denied and the City Manager or his/her designee shall so notify the applicant in writing.
E. Expiration. The City Manager or his/her designee shall not grant infeasibility waivers on or after January 1, 2045. All Infeasibility Waivers granted previously shall expire on January 1, 2045.
14.06.110 Appeal
A. Any aggrieved Applicant may appeal the determination of the City Manager or his/her designee regarding the granting or denial of an exception or infeasibility waiver pursuant to this Chapter.
B. Any appeal must be filed in writing with the City Clerk not later than fourteen (14) days after the date of the City’s determination. The appeal shall state the alleged error or reason for the appeal.
C. The appeal shall be processed and considered by the City Council in accordance with the provisions of the Half Moon Bay Municipal Code.
14.06.070 Periodic Review
A. The City anticipates that all buildings will be required by the State to be fully electrified over time and thus monitoring and managing implementation of this Chapter is necessary.
B. The City Council shall review the effectiveness of this Chapter in conjunction with the annual review of the City’s adopted Climate Action and Adaptation Plan (CAAP).
C. The City Council shall review this Chapter in conjunction with the triannual building code adoption cycle to ensure it is at least as stringent as State Code and to ensure progress under this Chapter is sufficient in conjunction with the City’s Greenhouse Gas Emission Reduction Goals.
14.06.080 Violations
An owner of a building or property and/or an agent representing the owner subject to this Chapter who fails to comply with any of requirements of this Chapter shall be subject to fines and penalties contained in Title 4 (Code Enforcement) and any other enforcement provisions authorized by the California Building Code or related Codes. 121