Half Moon Bay City Council
June 7, 2022

CITY COUNCIL AGENDA

REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, JUNE 7, 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

APPROVAL OF AGENDA

PUBLIC FORUM

PROCLAMATIONS AND PRESENTATIONS

PRIDE MONTH PROCLAMATION
TITLE IX 50TH ANNIVERSARY PROCLAMATION

MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

CITY MANAGER UPDATES TO COUNCIL

1. CONSENT CALENDAR

1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES

1.B RESOLUTIONS CALLING FOR THE HOLDING OF THE NOVEMBER 8, 2022

GENERAL MUNICIPAL ELECTION
Staff Recommendation: Adopt a resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers; and adopt a resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022, and authorizing the City Manager to enter into a service agreement for the provision of election services.

STAFF REPORT
RESOLUTION 1
RESOLUTION 2
2 1.C RE-RATIFICATION OF RESOLUTION TO CONTINUE HOLDING PUBLIC MEETINGS REMOTELY (AB 361)
Staff Recommendation: By motion, in accordance with Assembly Bill 361, re-ratify the findings in Resolution No. 2021-80 to continue conducting the City’s Council, Commission, and Committee meetings remotely due to health and safety concerns to the public due to COVID-19.

STAFF REPORT

1.D FIRST AMENDMENT TO THE PACIFIC RIDGE SETTLEMENT AGREEMENT Staff Recommendation: Adopt a resolution authorizing the City Manager to execute the First Amendment to the Pacific Ridge Settlement Agreement, amending Paragraph 14 of the Settlement Agreement to extend the date for construction of the last single-family home from May 15, 2025, to no later than May 15, 2030, subject to approval by the California Coastal Commission.

STAFF REPORT

RESOLUTION
ATTACHMENT 2
ATTACHMENT 3

1.E CONSTRUCTION CONTRACT AWARD FOR THE KELLY AVENUE CROSSWALKS PROJECT (CIP PROJECT NO. TBD)
Staff Recommendation: Adopt a resolution authorizing the City Manager to:

1. Direct the Administrative Services Director to transfer $265,000 from the Pavement Management and Traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD).

2. Award and execute a construction contract to the lowest responsive and responsible bidder, Innovate Concrete, Inc., of Santa Clara, California, in the total bid amount of $189,853.41 and approve an additional contingency amount of $28,478.01 (15 percent) for a total construction budget amount of $218,331.42.

STAFF REPORT

RESOLUTION
ATTACHMENT 2
3 1.F LIBRARY CAPITAL FUND REIMBURSEMENTS
Staff Recommendation: Adopt a resolution authorizing the transfer of $910,745 from the Library Capital Fund (F153) to the General Fund (F101) as reimbursement of payments to the County of San Mateo for the Library Construction Loan.

STAFF REPORT

RESOLUTION

1.G SB 1 LOCAL STREETS AND ROAD IMPROVEMENT PROJECT LIST – FY 2022-23 Staff Recommendation: Adopt a resolution approving the Pavement Management and Traffic Safety Program and the Poplar Complete Streets Project as the dedicated projects for Road Maintenance and Rehabilitation Account (RMRA) Funding.

STAFF REPORT

RESOLUTION
ATTACHMENT 2

1.H RESOLUTIONS OF LOCAL SUPPORT FOR MULTIPLE GRANT PROGRAMS Staff Recommendation: Adopt resolutions authorizing staff to file applications and providing local support for the following grants:

1. ACR/TDM Grant for the Midcoastside Traffic Demand Management Plan

2. ACR/TDM Grant for “Pedal for a Purpose” E-Bicycle Pilot Program

3. ATP Grant: Eastside Parallel Trail North – Segment 2 (Spindrift Way to Ruisseau Francais)

4. ATP Grant: Eastside Parallel Trail – South (Higgins Canyon to Miramontes Point)

5. OBAG 3 Grant: Kelly Avenue Complete Streets Project

STAFF REPORT
RESOLUTION 1
RESOLUTION 2
RESOLUTION 3
RESOLUTION 4
RESOLUTION 5
4 1.I COASTSIDE LAND TRUST WAVECREST TRAIL LICENSE AGREEMENT Staff Recommendation: By motion, authorize the City Manager to provide the draft Wavecrest Trail License Agreement for the Coastside Land Trust (CLT) Wavecrest California Coastal Trail Phase 2 project and sign a letter of commitment for CLT’s application for grant funding from the Proposition 68 Regional Park Program.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2

1.J DONOR RECOGNITION AND NAMING POLICY FOR THE JOHN L. CARTER MEMORIAL

PARK RENOVATION PROJECT
Staff Recommendation: Adopt a resolution approving the Donor Recognition and Naming Policy for the John L. Carter Memorial Park Renovation Project.

STAFF REPORT

RESOLUTION

2. ORDINANCES AND PUBLIC HEARINGS

3. RESOLUTIONS AND STAFF REPORTS

3.A AWARD OF CONSTRUCTION CONTRACT AND PROFESSIONAL SERVICES AGREEMENTS FOR PHASE 1 OF THE CORPORATION YARD IMPROVEMENTS PROJECT (CIP NO. 9023) Staff Recommendation: Adopt the following resolutions authorizing the City Manager to:

1. Award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Paving and Grading of Half Moon Bay, CA, in the bid amount of $2,745,018 and approve a construction contingency not exceeding an amount of $219,601 (8 percent); and

2. Authorize the City Manager to execute a Professional Services Agreement with SWCA Environmental Consultants, Inc. for construction related Biological and Environmental Services in the amount of $54,725; and

3. Execute Amendment No. 2 to the professional services agreement with ELS Architecture and Urban Design for Architectural Construction Support in the amount of $20,000; and

4. Execute Amendment No. 3 to the professional services agreement with BKF Engineers for Engineering Construction Support in the amount of $10,000.

STAFF REPORT
RESOLUTION 1
5 RESOLUTION 2
RESOLUTION 3
RESOLUTION 4

3.B HALF MOON BAY HOTEL BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2021, RESOLUTION OF INTENTION TO CONTINUE TO LEVY ASSESSMENTS FOR FISCAL YEAR 2022- 23, AND FUNDING REQUEST FOR FISCAL YEAR 2022-23
Staff Recommendation: By motion: 1) approve the Half Moon Bay Hotel Business Improvement District Annual Report for 2021; 2) adopt a resolution declaring the City’s intention to continue the Half Moon Bay Hotel Business Improvement District, to continue the basis and to levy the assessment for the District, and to set a date (June 21, 2022) for the public hearing on the District and the assessment for FY 2022-23; and 3) consider a $40,000 funding request to be included in the FY 2022-23 Recommended Budget.

STAFF REPORT

RESOLUTION
ATTACHMENT 2

3.C FISCAL YEAR 2022-2023 RECOMMENDED BUDGET
Staff Recommendation: Receive a presentation on the FY 2022-23. Recommended Budget, and after accepting public comments and providing additional direction to staff, direct staff to return with the final proposed budget for adoption on June 21, 2022.

STAFF REPORT
ATTACHMENT 1

COMMISSION / COMMITTEE UPDATES

CITY COUNCIL REPORTS / FUTURE ITEMS

ADJOURNMENT
6 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Jessica Blair, Communications Director / City Clerk TITLE: RESOLUTIONS CALLING FOR THE HOLDING OF THE NOVEMBER 8, 2022 GENERAL

MUNICIPAL ELECTION
RECOMMENDATION:

Adopt a resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers; and adopt a resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022, and authorizing the City Manager to enter into a service agreement for the provision of election services.

FISCAL IMPACT:

The San Mateo County Elections Office estimate for the November General Municipal Election is approximately $45,000. An additional $5,000 is required for advertising, translation services, and printing of election manuals and other candidate materials. If any measures are added, they would be added at roughly $10,000 per measure.

DISCUSSION:

There are three City Council seats (District 1, District 4, and District 5) available in the November 8, 2022 election.

The nomination period for candidates opens Monday, July 18, 2022 at 8:30 a.m. and ends Friday, August 12, 2022 at 5:00 p.m. City Hall operating hours will determine the local filing deadlines in Half Moon Bay (Friday closures). If an incumbent does not file nomination papers within that timeframe, the deadline is extended to Wednesday, August 17, 2022 at 5:00 p.m.

ATTACHMENTS:

1. Resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers

2. Resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022 7 RESOLUTION NO. C-2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE

LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 8, 2022, for the election of three Municipal Officers; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

1. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of Half Moon Bay, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing two members of the City Council (District 1, District 4 and District 5) for a full term of four years.

2. That the ballots to be used at the election shall be in form and content as required by law.

3. That the City Clerk is authorized, instructed, and directed to coordinate with the County of San Mateo Registrar-Recorder / County Clerk to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

4. That the polls for the election shall be open at 7:00 a.m. of the day of the election and shall remain open continuously from that time until 8:00 p.m. of the same day when the polls shall be closed, pursuant to Election Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.

5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.

7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of San Mateo RegistrarRecorder / County Clerk, the City Council, in accordance with Election Code § 15651(b), 8 shall conduct a special runoff election to resolve the tie vote and such special runoff election is to be held on a Tuesday not less than 40 days nor more than 125 days after the administrative or judicial certification of the election which resulted in a tie vote.

8. That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office may file a Candidate’s Statement of Qualifications, not to exceed 200 words, on an appropriate form provided by the City Clerk at the time of returning nomination papers for filing. Said statement shall be included in the Voter Information Pamphlet and Sample Ballot to be mailed to all registered voters unless said statement is withdrawn by the candidate no later than 5:00 p.m. of the next working day after the close of the nomination period. Each candidate filing a Candidate’s Statement of Qualifications shall be responsible for payment of a pro-rata share of costs of printing, handling, and mailing as a condition of having his or her statement included in the voter’s pamphlet. A deposit of $300 shall be required and the City Clerk shall bill each candidate for any cost in excess of the deposit or shall refund within 30 days of the election any unused portion of the deposit.

9. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 7th day of June, 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
9 RESOLUTION NO. C-2022-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY REQUESTING THE

BOARD OF SUPERVISORS OF THE COUNTY OF SAN MATEO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE; AND

AUTHORIZING THE CITY MANAGER TO ENTER INTO A SERVICE AGREEMENT FOR THE

PROVISION OF ELECTION SERVICES
WHEREAS, the City Council of the City of Half Moon Bay called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of two Members of the City Council; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city, the precincts, polling places, and election officers of the two elections be the same, and that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of San Mateo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of the election of three Members of the City Council and potential ballot measures.

2. That the County Election Department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election.

4. That the City of Half Moon Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs, which are estimated to be $45,000, plus roughly $10,000 for each measure added.

5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Election Department of the County of San Mateo. 10 6. That the City Manager is authorized to enter into a Service Agreement for the Provision of Election Services between the City of Half Moon Bay and the San Mateo County Chief Elections Officer.

7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 7th day of June, 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
11

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Jessica Blair, Communications Director / City Clerk

TITLE: RE-RATIFICATION OF RESOLUTION TO CONTINUE HOLDING PUBLIC MEETINGS REMOTELY (AB 361)
______________________________________________________________________________ RECOMMENDATION:

By motion, in accordance with Assembly Bill 361, re-ratify the findings in Resolution No. 2021- 80 to continue conducting the City’s Council, Commission, and Committee meetings remotely due to health and safety concerns to the public due to COVID-19.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

STRATEGIC ELEMENT:

This action supports the Inclusive Governance element of the Strategic Plan.

BACKGROUND:

On March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for a broader spread of COVID-19.

Thereafter, on March 17, 2020, the City Council adopted Resolution 2020-16 declaring a local emergency due to COVID-19. The same day, Governor Newsom issued Executive Order N-29- 20, which suspended certain provisions of the Ralph M. Brown Act to allow local legislative bodies to conduct meetings telephonically or by other means. Additionally, the State implemented a shelter-in-place order, requiring all non-essential personnel to work from home.

Staff quickly worked to set up remote meetings via Zoom for all City Council and Planning Commission meetings. The Zoom meetings have allowed the Council, Commissions, and Committees to continue to conduct City business from the safety of members’ homes. The City has been utilizing Zoom for the past 18 months to conduct nearly all public meetings. The usage of Zoom for public meetings has allowed the City to ensure the public’s continued access to government meetings while also ensuring the public’s safety. 12

On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which extended the ability of agencies to hold remote meetings through September 30, 2021, after which agencies anticipated transitioning back to public meetings held in full compliance with the Brown Act. In preparation for the return to in-person meetings, staff has been working on acquiring audio and visual upgrades for City facilities to conduct hybrid meetings. Although hybrid meetings would help to keep the public safe by allowing them to continue accessing the meetings from their own home, Councilmembers, Commissioners, Committee members, and staff would need to meet in person.

Since the Governor issued Executive Order N-08-21, the Delta variant has emerged, causing a spike in cases throughout the state. As a result, the San Mateo County Health Department issued a Health Order requiring masks indoors in public places, regardless of vaccination status, starting August 3, 2021.

On September 16, 2021, Governor Newson signed Assembly Bill 361 (AB 361), which allows cities to continue to meet remotely during proclaimed states of emergency under modified Brown Act requirements that are similar but not identical to the rules and procedures established by the previous Executive Orders.

AB 361 authorizes local agencies to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Brown Act during a declared state of emergency, when state or local health officials have imposed or recommended measures to promote social distancing during the proclaimed state of emergency, or when there is an imminent risk to the health or safety of attendees.

On October 5, 2021, the City Council adopted Resolution No. 2021-80 under the requirements of AB 361 to continue conducting meetings remotely. AB 361 requires the City Council to make the findings every 30 days, necessitating the need for this item.

On December 15, 2021, a statewide mask mandate went into effect due to a rise in cases across the state.

On January 10, 2022, in response to the surge of COVID-19 cases, Omicron variant, City Hall closed to the public moving services to remote services.

On March 1, 2022, the statewide requirement that unvaccinated individuals mask in indoor public settings moved to a strong recommendation that all persons, regardless of vaccine status, continue indoor masking. The San Mateo Chief Health Officer has likewise recommended the CDC’s masking guidance.
13

DISCUSSION:

AB 361 will allow local legislative bodies to continue to meet remotely after the September 30, 2021 expiration of the Governor’s executive orders. A local agency will be allowed to continue to meet remotely when:
• The local agency holds a meeting during a declared state of emergency • State or local health officials have imposed or recommended measures to promote social distancing
• Legislative bodies declare the need to meet remotely due to present imminent risks to the health or safety of attendees
The City meets the requirements to continue holding meetings remotely to ensure the health and safety of the public due to the following:
• The City is still under a local state of emergency
• County health orders require that all individuals in public spaces maintain social distancing and wear masks
• The City can’t maintain social distancing requirements for the public, staff, Councilmembers, Commissioners, and Committee Members in their meeting spaces The City cannot ensure social distancing requirements are met inside City facilities where the City Council, Planning Commission, Parks and Recreation Commission, Redistricting Advisory Committee, Bicycle and Pedestrian Advisory Committee, and Main Street Bridge Advisory Committee meet.

Councilmembers, Commissioners, Committee Members, and staff sit well within six feet of each other. Moreover, the County’s indoor mask order is still in effect, making it difficult to hear what Councilmembers, Commissioners, Committee Members, staff, and public speakers are saying. Furthermore, while speaking through masks may be understandable in person, picking up speech on microphones for those attending remotely and those watching any livestreams would be difficult.

Per AB 361, the City Council would need to declare every 30 days that the City’s legislative bodies must continue to meet remotely to ensure the health and safety of the public. Staff recommends that the City Council declare these findings are true so these bodies can continue to meet remotely. Staff will return with this resolution for re-ratification at the Council’s 1st Tuesday meeting each month, at which time the Council can reassess as various health orders and COVID-19 parameters change.
14

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: John Doughty, Public Works Director
Maziar Bozorginia, City Engineer
TITLE: FIRST AMENDMENT TO THE PACIFIC RIDGE SETTLEMENT AGREEMENT ______________________________________________________________________________ RECOMMENDATION:

Authorize the City Manager to execute the First Amendment to the Pacific Ridge Settlement Agreement, amending Paragraph 14 of the Settlement Agreement to extend the date for construction of the last single-family home from May 15, 2025 to no later than May 15, 2030, subject to approval by the California Coastal Commission.

FISCAL IMPACT:

Amendment of the Settlement Agreement (Agreement) will result in a deferral of permit fees and some development impact fees. Ultimately, these fees will all be paid at the time of construction which under the amendment would be deferred up to 5 additional years.

STRATEGIC ELEMENT:

The requested action supports the Infrastructure and Environment & Healthy Communities and Public Safety Elements of the Strategic Plan.

BACKGROUND:

Pacific Ridge is a single-family residential subdivision project located at the easterly extension of Terrace Avenue. The project includes a total of 63 single family homes. The map includes three distinct phases of which Phase 1 (19 lots/homes and infrastructure) is complete. Phase 2 and 3 Final maps were approved by the City Council on December 5, 2017, and subsequently recorded. Phase 2 includes a total of 26 lots and Phase 3 includes 18 lots for a combined total of 44 lots. Public improvements including street improvements and wet/dry utilities have been completed and accepted by the City. Rough grading of the residential lots has been completed as well. To date, no homes have been built in Phase 2 or 3.

The owner, Ailanto Properties, desires to sell Phases 2 and 3 to a production home builder (as opposed to selling each individual parcel as a custom home parcel). Ailanto Properties has actively marketed Phases 2 and 3 since map recordation. City staff have met with several potential buyers and can attest to the efforts of Ailanto Properties relative to marketing of 15

Phases 2 and 3. Ailanto Properties has included some details regarding their sales efforts in the letter included as Attachment 2 to this report.

The Pacific Ridge project has been subject to a lengthy and sometimes controversial entitlement process. The project included several design changes, entitlement revisions, appeals, litigation and ultimately in 2004 a Settlement Agreement (Agreement) between the City, Coastal Commission and Ailanto Properties (included as Attachment 3). The Agreement settled the outstanding litigation and counter claims involving entitlements allowing subdivision of the property to proceed conditionally. Ultimately, the Settlement Agreement established a basis for the revised 2008 Coastal Development Permit (CDP) for the residential subdivision which among other things reduced the number of homes from 126 to 63, the inclusion of a new cumulative traffic impact fee (intended to be used for lot retirements) and an exemption of the 63 single family homes from the City’s growth management program (Measure A which subsequently was modified as Measure D).

On April 7, 2022, the City received a letter from Ailanto Properties (see Attachment 2) requesting the City approve an amendment to the Settlement Agreement. Specifically, the property owner is seeking modification of Paragraph 14 of the Agreement which: 1) exempts the project from the City’s growth management program; and 2) requires the completion of the last single-family home with eight (8) years of the issuance of the first building permit (May 15, 2025 based upon issuance date of first building permit).

On April 25, 2022, the City met with Ailanto Properties representatives to discuss their request.

Staff agreed to present the request to the City Council for consideration.

DISCUSSION:

The first building permit for the Pacific Ridge Subdivision was issued to 3 Homes on May 16, 2017. Under current provisions, the exemption to Measure A/D remains in place as long as the last home is completed within eight (8) years of the first issued permit (May 2025). Ailanto Properties is requesting to extend the exemption for an additional five (5) years. This would mean the last home would be completed no later than May of 2030. The letter (Attachment 2) outlines Ailanto Properties’ request and rationale for the extension.

Paragraph 14 of the approved Settlement Agreements is as follows:
16

Modification of the Settlement Agreement requires approval by both the City Council and the California Coastal Commission. Staff has reviewed the requests and determined that the proposed modification does not conflict with other provision of the Agreement nor does it serve to extend the tentative map as all phases of the subdivision map have been recorded.

From a purely policy perspective, staff can identify no reason to deny the extension.

Staff is concerned about the implications of the extension on existing public and private improvements. Run-off from rough-graded private development areas have and will continue to negatively impact public infrastructure, notably the public street(s). Additionally, Phases 2 and 3 include required Homeowner’s Association (HOA) amenities like paths and trails that need to be maintained and available to residents of Phase 1 and ultimately to residents of Phases 2 and 3. Staff has included language in the Modification requiring the property owner provide ongoing maintenance of Phases 2 and 3 including maintenance of public improvements (streets and drainage structures), HOA improvements as well as stormwater best management practices (BMPs) throughout. Under the terms, Ailanto shall be responsible for maintaining the site and public improvements until construction is completed on the final home, which includes:
1) Pavement crack seal in 2023 and every other year thereafter; 2) Pavement slurry in 2024 and prior to final inspection of the last home; 3) Quarterly inspection of all stormwater best management practices and any remediation necessary to maintain the site;
4) Annual maintenance of pedestrian pathway including mowing and erosion repair and protection; and
5) Concrete sidewalk, curb and gutter repair of all failing and areas prior to final inspection of the last home.

Further, Ailanto Properties shall not commence work within the public street without first obtaining a temporary encroachment permit from the City which shall include a detailed scope 17

of work and contractor information. Any work within a public street shall be completed by a licensed Class A contractor. These and the other maintenance obligations are tied to the property and will remain the obligation of any successor in interest.

Staff has discussed the recommended maintenance provisions with the owner and they are amenable to inclusion in the revised Agreement. It remains in the financial interest of the property owner to continue to market the property and find a buyer or buyers for Phases 2 and

3. In the meantime, the property owner (or any subsequent buyer), under the Modification, will be obligated to maintain public infrastructure and private properties within Phases 2 and 3.

These provisions not only protect the assets and adjacent properties, but also incentivize the continued marketing and ultimate completion of homes in Phase 2 and 3.

As the California Coastal Commission is a signatory to the Settlement Agreement, staff is recommending language in the resolution that requires written Coastal Commission concurrence of the Amendment as a condition of signature and execution by the City Manager.

ATTACHMENTS:

1. Resolution

2. Letter from Ailanto Properties Requesting Modification

3. 2004 Settlement Agreement
1515501.1
18 RESOLUTION NO. C-2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING THE FIRST

AMENDMENT TO THE PACIFIC RIDGE SETTLEMENT AGREEMENT
WHEREAS, Ailanto Properties is the owner of real property in the City of Half Moon Bay which is referred to as the Pacific Ridge Subdivision (Project); and WHEREAS, the Ailanto Properties has recorded three phased Final Maps creating 63 single family lots at the easterly terminus of Terrace Avenue; and WHEREAS, the Project is subject to a 2004 settlement agreement (Agreement) between the Owner, the City of Half Moon Bay and the California Coastal Commission; and WHEREAS, Paragraph 14 of the Agreement requires completion of the last home no later than eight years of the issuance of the first building permit; and WHEREAS, the first building permit for the project was issued on May 16, 2017; and WHEREAS, under the Agreement the last home must be completed no later than May 15, 2025; and
WHEREAS, the Owner has, to date, been unsuccessful at finding a buyer for Phase 2 and 3 of the Project and has formally requested modification of the Agreement to extend the date for completion by 5 years; and
WHEREAS, the requested amendment to the Agreement does not conflict with other terms of the 2004 Settlement Agreement.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon hereby authorizes the City Manager to execute the First Amendment to the Pacific Ridge Settlement Agreement, as contained in Exhibit A to this Resolution, subject to approval of the California Coastal Commission.
19 ***************************************************************** I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 7th day of June, 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
20 1
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FIRST AMENDMENT TO SETTLEMENT AGREEMENT BETWEEN
AILANTO PROPERTIES, INC., THE CITY OF HALF MOON BAY

AND THE CALIFORNIA COASTAL COMMISSION
This First Amendment to Settlement Agreement Between Ailanto Properties, Inc., the City of Half Moon Bay and the California Coastal Commission (this “Amendment”) dated, for reference purposes, as of _________________, 2022, is made by and between AILANTO PROPERTIES, INC., a California corporation (“Ailanto”), the City of Half Moon Bay (the “City”) and the California Coastal Commission (the “Commission”).

RECITALS
A. Ailanto, the City and the Commission are parties to a Settlement Agreement Between Ailanto Properties, Inc., the City of Half Moon Bay and the California Coastal Commission dated as of ____________, 2004 (the “Settlement Agreement”), pursuant to which Ailanto, the City and the Commission agreed to settle certain litigation matters referred to in the Settlement Agreement. Such litigation matters and the Settlement Agreement affect and pertain in significant part to Ailanto’s development of a housing project in the City of Half Moon Bay, known as the “Pacific Ridge Project”.

B. Ailanto has obtained certain entitlements to develop sixty-three (63) residential homes within the Pacific Ridge Project referred to above. Nineteen (19) of the homes were built out in the first phase of the Pacific Ridge Project and Ailanto continues to own forty-four (44) single family lots within the Pacific Ridge Project. Such forty-four (44) lots are in finished lot condition; however, homes have not yet been constructed on such forty-four (44) lots.

C. Paragraph 14 of the Settlement Agreement provides, in part, that the development of the Pacific Ridge Project would be phased but that all homes would be built and completed within eight years of the start of construction on any individual lot in the Pacific Ridge Project.

Ailanto commenced construction on the first lot in the Pacific Ridge Project on or around May, 2017 and, therefore, per the terms of Paragraph 14 of the Settlement Agreement, Ailanto would need to complete construction of homes on the remaining forty-four (44) lots by May, 2025.

D. Ailanto is concerned that it will not be able to complete construction of homes on the remaining forty-four (44) lots by May, 2025. Ailanto’s President, Albert Fong, has had health issues over the past several years and has decided that he and Ailanto will not be in position to build homes on the remaining forty-four (44) lots. Ailanto hereby discloses to the City and the Commission that (i) Ailanto has been actively marketing the remaining forty-four (44) lots to prospective homebuilders for the past several years after having completed infrastructure improvements on such lots, (ii) to make the remaining forty-four (44) lots attractive, Ailanto has twice lowered the purchase price of the lots, and (iii) despite the lowering of the purchase price of such lots, Ailanto continues to have difficulty finding a buyer for such lots at this time. Ailanto maintains that it is having difficulty selling such remaining lots to a homebuilder because (x) very few homebuilders want coastal property, (y) union labor is required for the build out of homes on the remaining lots, thereby causing the cost of construction to be high and (z) there is an extremely short deadline of approximately three (3) years to complete construction of houses on the remaining lots. Add to that the fact that there are 21 2
4855-6964-8925v4
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now supply chain issues, shortages of materials, and increases in labor and materials costs, makes it extremely difficult to find a buyer that will purchase the remaining forty-four (44) lots and complete the construction of homes on those lots.

E. Ailanto requests a five (5) year extension of the eight (8) year time period to complete, or cause to be completed, construction of homes on the remaining forty-four (44) lots in the Pacific Ridge Project so that Ailanto will have additional time to find a homebuilder(s) to purchase such lots and complete construction of homes on such lots. The City and Commission are willing to grant Ailanto such five (5) year extension, subject to the terms below.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1. Defined Terms. Each capitalized term used herein, that is not otherwise defined or modified herein, shall have the meaning ascribed to it in the Settlement Agreement.

2. Extension of Time Period to Complete Construction of Homes. The last sentence of Paragraph 14 of the Settlement Agreement is hereby deleted in its entirety and the following is substituted in place thereof: “All homes shall be built and completed on or before May 15, 2030.

Ailanto or its successors or assigns (excluding therefrom any owner of a completed home on any of the forty-four lots referred to in Recital B above) shall be responsible for performing, or causing to be performed, the following with respect to the remaining real property in the Pacific Ridge Project currently owned by Ailanto (the “Property”): (1) seal pavement cracks in 2023 and every other year thereafter until completion of construction of the final home on the Property, (2) pavement slurry prior to final inspection of the last home constructed on the Property, (3) inspection twice a year in April and October until completion of construction of the final home on the Property of all stormwater best management practices and any remediation necessary to maintain the site, (4) annual maintenance of pedestrian pathway, including mowing and erosion repair and protection, until completion of construction of the last home on the Property and (5) concrete sidewalk, curb and gutter repair of all failing and areas prior to final inspection of the last home constructed on the Property.”

3. Full Force and Effect. Except as specifically amended hereby, the Settlement Agreement remains in full force and effect and is hereby ratified by the parties hereto. In the event that any of the terms or conditions of the Settlement Agreement conflict with this Amendment, the terms and conditions of this Amendment shall control.

4. Authorization. Each party hereto represents to the other parties that the individual(s) executing this Amendment on behalf of such party are authorized to do so on behalf of such party and this Amendment is binding upon and enforceable against such party in accordance with its terms.

5. Successors and Assigns. This Amendment shall bind and inure to the benefit of each party hereto and its successors and assigns. It is the intent of the parties that the rights and 22 3
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obligations of this Settlement Agreement will run with the land, and Ailanto will provide reasonable notice of the Settlement Agreement to any transferee or potential transferee of any interest in the Property.

6. Attorneys’ Fees. If legal action is commenced by a party to this Amendment to enforce or to declare the effect of any provision of this Amendment, the prevailing party shall be entitled to recover from the non-prevailing party reasonable attorneys’ fees and other litigation costs. In addition to the foregoing award of reasonable attorneys’ fees and other litigation costs to the prevailing party, the prevailing party in any lawsuit on this Amendment shall be entitled to its attorneys’ fees and other litigation costs incurred in any post-judgment proceedings to collect or enforce the judgment.

7. Indemnification. If litigation is filed by any person, other than a party to this Amendment, challenging this Amendment or any action of the Commission or the City pursuant to this Amendment, the City (and any members of its City Council if named in such litigation) may tender its defense of such litigation to Ailanto, and Ailanto shall thereafter defend the litigation without the City’s participation. In such instance, Ailanto shall indemnify the City for any fees or costs that might be awarded against the City in such litigation.

8. Counterparts; Signatures. This Amendment may be executed and delivered by PDF, email, DocuSign or facsimile signatures and in several or separate counterparts, and each counterpart, when so executed and delivered, shall constitute an original agreement, and all such separate counterparts shall constitute but one and the same agreement.

9. Governing Law. This Amendment shall be governed by the laws of the State of California.
[balance of page is intentionally blank; signature page follows on next page] 23 4
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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the date first set forth above.

AILANTO:

AILANTO PROPERTIES, INC.,
a California corporation
By: _______________________________
Name: _______________________________
Title: _______________________________
CITY:

CITY OF HALF MOON BAY
By: ______________________________
Name: ______________________________
Title: _______________________________
COMMISSION:

CALIFORNIA COASTAL COMMISSION
By: ______________________________
Name: _____________________________
Title: ______________________________
1515204.2
24 AILANTO PROPERTIES, INC.
1939 HARRISON STREET I SUITE 711 I OAKLAND, CA 94612
TEL (510) 465-8888 FAX (510) 465-5704
April 7t11, 2022
City of HalfMoon Bay
Attn: Mr. Bob Nisbet
City Hall

CITY OF HALF MOON
501 Main Street
HalfMoon Bay, CA 94019
Re: Pacific Ridge Phase II and III (Lots#20-Lot#63)
Request for Time Extension
Dear Mr. Nisbet,
APR 1 .2 2022

RECEIVED
We are writing this letter to request an extension of time to complete building the remaining 44 homes at Pacific Ridge.

Section 14 of the Settlement Agreement allows Pacific Ridge to have 8 years to complete building all 63 homes there. Edenbridge started the construction in around April, 2017 and therefore, we figure Pacific Ridge is due to be completed by April2025.

As you may know, our company has been downsizing its operations significantly over years and decided not to build out the project soon after Albert has been diagnosed with Parkinson's. We actively market the project once we finished the infrastructure improvements of Phase II and Phase III. To make it attractive, we lowered the asking price twice in the past two years.

However, we are still having a difficult time to find an interested buyer due to the facts that (1) very few builders want coast side project, (2) our project requires using union labors, and (3) there is a very tight time limit to complete the project.

For the past 3 years we were in contracts with several builders, but once they evaluated the costs of using union and the limitation of time to build the project. They all fmally backed out of the deal. Now together with supply chain issue, shortage of materials, and building costs inflation, all those make it even harder to find a buyer.

Pacific Ridge is such a beautiful project. Albert has contributed majority of his resources and has gone through countless of hurdles to get it approved, to fmish the infrastructure improvements, and to build out all 63 fmished lots.

BAY
25 All in all, we come to realize that it is impossible for us to find a buyer without City's approval of extension of time. Instead of expiring in April2025, we would like to ask for an additional five years to extend the expiration to April, 2030. This condition of time limit was raised by the City during negotiation of Settlement Agreement and it does not exist in the CDP permit issued by California Coastal Commission (a copy ofCDP is attached), and thus we decide to make this request directly to the City.

We are hoping that the City understands our situation and grants us the extension.

Should you have any questions, please contact us at [email protected] or 510-465- 8888 ext. 130
Thank you.

Sincerely, fi::J::._RTIES, INC.
c:/~wan Financial Controller
cc w/ enclosure:
cc w/ enclosure:

John Doughty, Public Works Director
Jill Ekas, Community Development Director
26 California Coastal Commission

COASTAL DEVELOPMENT PERMIT
CDP A·1·HMB-.99•022 ·(Pacific Ridge)
As amended by CDP amendment A·1·HMB-99·022·A1
Issue Date: October 3, 2011

Coast~! development.permit (CDP) number A·l-HMB-99-022 was approved by the California Coastal Commission on February 16, 2001, and subsequently amended on October 15, 2008 (CDP amendment number A-1-HMB-99-022-A1). CDP A-1-HMB-99-022, as amended, provides for the subdivision of two parcels totaling 114 acres into 63 residential lots and construction of 63 single-family homes, a neighborhood park, streets and infrastructure, located adjacent to the eastern ends of Grandview Boulevard and Terrace A venue, north of Highway 92 and east of Highway 1, in the City of Half Moon Bay, San Mateo County (all as more specifically described in the Commission's CDP file). CDP A-1- HMB-99-022, as amended, is subject to certain terms and conditions, including the standard and special conditions beginning on page 2 of this CD!>.

As of October 3, 2011, all. of the amended CDP's prior to issuance requirements have been met, and the amended CDP can now be issued. Thus, by my signature below, the amended CDP is issued on behalf of the California Coastal Commission:
~~ &o/~{zo,, Dan Carl, Central Coastal District Manager for Charles Lester, Executive Director Acknowledgement
The undersigned Permittee acknowledges receipt of this amended coastal development permit and agrees to abide by all terms and conditions thereof. The undersigned Permittee acknowledges that Government Code Section 818.4 (that states in pertinent part that "a public entity is n0t·liable for injury caused by the issuance of any permit") applies to the issuance of this amended coastal development permit.

Please note that this amended coastal development permit is not valid UJ11ess and until a copy of it with the signed acknowledgement has been returned to the California Coastal Commission's North Central Coa8tDistrict Office (14 Cal. Admin. Code Section 13158(a)). This amended CDP replaces and supersedes any previously issued CDP. ·.
27 California Coastal Commission

COASTAL DEVELOPMENT PERMIT
CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1-HMB-99-022·A1
Issue Date: October 3, 2011

Coastal development.,permit (CDP) number A-1-HMB-99-022 was approved by the California Coastal Commission on February 16, 2001, and subsequently amended on October 15, 2008 (CDP amendment number A-l-HMB-99-022-A1). CDP A-1-HMB-99-022, as amended, provides forth~ subdivision of two parcels totaling 114 acres into 63 residential lots and construction of 63 single-family homes, a neighborhood park, streets and infrastructure, located adjacent to the eastern ends of Grandview Boulevard and Terrace A venue, north of Highway 92 and east of Highway 1, in the City of Half Moon Bay, San Mateo County (all as more specifically described in the Commission's CDP file). CDP A-1- Hl'VIB-99-022, as amended, is subject to certain terms and conditions, including the standard and special conditions beginning on page 2 of this CD~.

As of October 3, 2011, all. of the amended CDP's prior to issuance requirements have been met, and the amended CDP can now be issued. Thus, by my signature below, the amended CDP is issued op. behalf of the California Coastal Commission:
~GA.-Q/L 1o{~{zolf Dan Carl, Central Coastal District Manager for Charles Lester, Executive Director Acknowledgement
The undersigned Permittee acknowledges receipt of this amended coastal development permit and agrees to abide by all terms and conditions thereof. The undersigned Permittee acknowledges that Government Code Section 818.4 (that states in pertinent part that "a public entity is not liable for injury caused by the issuance of any permit") applies to the issuance of this amended coastal development permit.

Permittee Date
·Please note that this amended coastal development permit is not valid unless and until a copy of it with the signed acknowledgement has been returned to the California Coastal Commission's North Central Coast District Office ( 14 Cal. Admin. Code Section I 3158(a)). This. amended CDP replaces and supersedes any previously issued CDP. 28 CDP A·1·HMB·99·022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB-99-022·A1
Issue Date: October 3, 2011

Standard Conditions

1. Notice of Receipt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit. signed by the Permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission ~~ ;

2. Standard Condition 2 shall be superseded by Special Condition 13.

3. Interpretation. Any questions of intent or iri.terpretation of any condition will be resolved by the Executive Director or the Commission.

4. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all tenns and conditions of the permit.

5. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Conimission and the Permittee to bind all future owners and possessors of the · subject property to the terms and conditions.

Special Conditions

1. Revised Subdivision Plan
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the.review and approval of the Executive Director, a revised project site plan as shown on the Pacific Ridge at Half Moon Bay Grading Plan, attached as Exhibit 5. No development, including grading, shall be allowed on any slopes that currently drain to the pond or other wetlands north of Stream

3. B. The applicant shall undertake development in accordance with the revised site plan approved by the Executive Director. No proposed changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is required.

2. Opeli Space and ConserVation Easement- Habitat.Protection A. No development, as defined in Coastal Act Section 30106, nor any agriculture or grazing activities shall occur in open space and environmentally sensitive habitat areas A and B as shown on $~hiib1t ) except for: (1) construction of the fence that is sited and designed in accordance with Special Condition 5.A.7 below; (2) other development necessary for habitat enhancement, if approved by the Commission as an amendment to this coastal development pennit; (3) construction and maintenance of the pedestrian trail as described in Special Condition 3; ( 4) construction of v-ditches or other drainage improvements, as may be required by geotechnical engineering review and erosion repair consistent with Special Condition 8, which are allowed by the erosion control plan approved by the California Coastal Commission
29 CDP A-1-f:'IMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB·99·022·A1
Issue Date: October 3, 2011

Executive Director pursuant to Special Condition 8; (5) such minor grading as may be required to fulfill any other requirement of the Settlement Agreement between the applicant, the Commission and the City of Half Moon Bay, as allowed pursuant to Special Condition 4.A; and (6) construction of the crossings that span, but are not footed in, the riparian areas, as described in Special Condition 6.B; (7) grazing as allowed by the habitat management plan approved by the Executive Director pursuant to Special Condition 5.

B. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall execute and record a document in a form and content acceptable to the Executive Director, irrevocably offering to dedicate to a public agency or private association approved by the Executive Director an open space and conservation easement for the purpose of resource protection and habitat conservation. Such easement shall include legal descriptions of both the applicant's entire property and the easement area. The recorded document shall also reflect that development in the easement area is restricted as set forth in this permit condition.

C. The offer shall be recorded free of prior liens and encumbrances that the Executive Director determines may affect the interest being conveyed. The offer shall run with the land in favor of the People of the State of California, binding all successors and assigns, and shall be irrevocable for a period of 21 years, such period running from the date of recording.

3. Public Access and Park Dedication
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, and consistent with the terms of the proposed project description, the applicant shall execute and record a document, in a form and content acceptable to the Executive Director, irrevocably offering to dedicate in fee to the City of Half Moon Bay or to another public agency approved by the Executive Director the 1.9-acre· park site, as generally depicted on the property map attached as Exhibit 3. The recorded document shall include legal descriptions of both the applicant's entire property and the fee dedication area. The recorded document shall also reflect that development in the fee dedication area is restricted to public park and recreation purposes.

R PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, and consistent with the tenns of the proposed project description, the applicant shall execute and record a document, in a form and content acceptable to the Executive Director, irrevocably offering to dedicate a public access easement to the City of Half Moon Bay or another public agency or private association approved by the Executive Director over the entirety of the trails, paths and associated public parking area as generally depicted on the site plan attached as Exhibit 4. The parking area shall accommodate 5 cars. The recorded document shall include legal descriptions ofboth the applicant's entire property and the easement area. The recorded document shall also California cC:a~tal Commission
I
30 CDP A·1·HMB·99·022 (Pacific Ridge)
As amended by CDP a.me.ndment A·1·HMB·99·022·A1
Issue Date: October 3, 2011

reflect that development in the easement area is restricted to public access purposes as set forth in this condition.

C. The offers identified in Subsections A and B shall be recorded free of prior liens and encumbrances that the Executive Director determines may affect the interests being conveyed. The offers shall run with the land in favor of the People of the State of California, binding all successors and assigns, and shall be irrevocable for a period of 21 years, such period running from the date of recording.

4. Open Space Deed Restriction- Scenic View Protection
A. No building pad for any home in the Project may be situated above the 155 foot contour line, as shown on the May 12, 2008 project plans, attached as Exhibit 5. No grading shall occur above the 160 foot contour line, as shown on the May 12, 2008 project plans, attached as Exhibit 5, except for the installation of v-ditches or other drrunage as may be required by geotechnical engineering review and erosion repair in. order to comply with Special Condition 8 of the permit and such minor grading as may be required to fulfill any other requirement of ·the Settlement Agreement between the applicant, the Commission and the City of HalfMoon Bay.

B. PRIOR TO ISSUANCE OF Tli:E NOI FOR TinS PERMIT, AS AMENDED, the applicant shall submit for the review and approval of the Executive Director, and upon such approval, for attachment as an Exhibit to the·NOI, a formal legal description and graphic depiction of the portion of the subject property affected by this condition, as generally described above and shown on Exhibit C to the Settlement Agreement between the applicant, the Commission, and the City of Half Moon Bay.

5. Habitat Management Plan c.

A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, thCi' applicant shall submit, for the review and approval of the Executive Director, a Habitat Management Plan that shall provide the following specific measures designed to .conserve enhance and manage the environmentally sensitive habitat area on the northern portion of the project site for the benefit of the San Francisco garter snake, the California red-legged frog, and other sensitive species that use the area, including raptors. The applicant shall be responsible for assuring the long-term implementation of the approved Habitat Management Plan.

1. Pond HydrolQgy
Maintain the diversion berm in central Drainage 3 to continue to direct intermittent water flow from Upper Drainage 3 toward the pond.

2. Grass Management
California Coastal Commission
31 CDP A· 1-HMB 99 22 (Pacific Ridge)
As amended by CDP amendment Aw1·HMB-99·022-A1
Issue Date: October 3, 2011

Manage grassland areas adjacent to, and upslope from, the pond and delineated wetlands to favor (re)establishment of native grass species and reduce or control invasive non-native species. ·

3. Habitat Enhancement
Manage lands to enhance and protect populations of target species of special-status biota, riparian areas, wetlands, and other site resources.

4. Fuel Management
Reduce or eliminate dangerous accumulations of wildfire fuels.

5. Open Space Management
Develop techniques and strategies for the active management of the open space areas using such tools and practices as grazing, prescribed burning, mechanical control of fuels, habitat (vegetation) restoration and establishment of native plants, erosion prevention and sediment control, and removal of exotic species.

6. RaptQrs
Prior to commencement of grading or any other construction-related activity, a qualified biologist shall conduct a survey of nesting raptors at the project site. If white-tailed kite, Cooper's hawk or other tree-nesting raptors are found, the tree(s) shall be protected from disturbance during the nesting season. A . temporary fence shall be placed 200 feet from the drip line of such trees and all grading or construction activities, including storage of materials or equipment, shall be excluded from. the fenced area. If ground-nesting northern barriers are found, a temporary nest shall be placed around the nest at a radius of 300 feet and all construction shall be excluded from the fenced area. During the nesting season, the biologist shall monitor the grading or construction site on a biweekly (14 day) period. The protection measures shall remain in effect until the biologist has verified that adults have abandoned the nest or the young have left the nest or nest tree.

Prior to commencement of grading or any other construction-related activity during the yellowthroat-nesting season, a qualified biologist shall conduct a survey of the project site for nesting salt marsh common yellowthroats. A 100-foot fenced temporary buffer shall be established around any active nest to exclude any construction activity, or any storage of materials or equipment from such buffer. The fence shall remain in place until August 1 of the year or until the biologist verifies that the nest is no longer active.

In the event that adult raptors or yellowthroats abandon a nest during grading or construction, the biologist shall within 48 hours prepare and submit a report to the executive director stating the observation and the biologist's professional opinion of the reasons therefor.

California Coastal Commission
32 CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB-99-022·A1
Issue Date: O~tober 3, 2011
PageG of16
At the end of a grading or construction phase, or the end of each year's nesting season during project construction, whichever comes first, the biologist shall prepare and submit to the executive director a monitoring report on the effectiveness of this condition to protect any identified raptor or yellowthroat nests at the project site.

7. Perimeter Fence
The Habitat Management Plan shall provide for the construction of a four- to fivefoot high fence with a solid base to separate the developed areas, i:B:eludffig trails, from the adjacent open space and environmentally sensitive habitat areas.

B. For a period of five years following issuance of the coastal development permit on the anniversary date of the Commission's action to approve the permit, the applicant (or his consulting expert) shall perform and report to the Commission on a monitoring study, consistent with applicable wildlife agency protocols, of the utilization of the dedicated habitat conservation area by the sensitive species referenced in Special Condition S.A Comn:1encing with the eighth year following issuance of the c6astal development permit and every third year thereafter, the "Pacific Ridge at Half Moon Bay" subdivision homeowners association, or its consulting expert, shall perform and report to the Commission on a monitoring study, consistent with applicable wildlife agency protocols of the utilization of the dedicated habitat conservation area by the sensitive species referenced in Special Condition 5.A.

C. The applicant, or his successors or assigns, during the term of the development and home sales program of the subdivision, and the homeowners association following completion of subdivision home sales shall be responsible for the impletp.entation, including, but limited to, any corrective actions of adverse conditions identified by the monitoring program pursuant to Special Condition S.B.

D. PRIOR TO THE iSSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the review of, and approval by the Executive Director, a report by a professional arborist of the eucalyptus trees in Drainages 1, 2, 3, 4, and 5, that describes their current state and makes recommendations for their long-term arboreal management including for roosting and nesting.

6. Riparian .Corridor Protection
A. PRIOR TO ISSUANCE OF THE COASXAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the review and approval of the Executive .Director, revised project plans that demonstrate ·that rio development, including lot lines, shall be located within 30 feet of the edge of any riparian vegetation associated with Streams 1, 2, and 3, or within 30 feet of the centerline of the streams where no riparian vegetation is present For purposes of this permit condition, riparian vegetation shall be defined as any vegetation that requires or tolerates soil moisture levels in· excess of that availab~e in adjacent terrestri.al areas and is typically associated with the banks, edges, or terrestrial limits offreshwater bodies, water courses, or surface emergent aquifers.

California Coastal Commission
33 CDP A-1-HMB-99·022 (Pacific Ridge)
As amended by CDP amendment A·1-HMB-99-022-A1
Issue Date: October 3, 2011

B. The two stream crossings authorized herein shall span the streams with no supports located within the riparian corridors. All construction activities, materials and equipment are prohibited from entering the riparian corridors and their respective buffer zones except as necessary for the construction of one road crossing each on Streams 1 and 2.

Prior to commencement of grading, the applicant shall install temporary construction fencing along the outer edge of all riparian buffer zones as shown on the approved revised site plan.

7. Cumulative Public Access Impact Mitigation
The applicant shall pay to the City the total sum of $2,835,000 as a cumulative traffic mitigation contribution fee ("the in-lieu CTMC fee"). The in-lieu CTMC fee represent the payment of $45,000 per lot, for each of the sixty-three parcels on which homes will be built.

The in-lieu CTMC fee shall be used by the City for the purpose of acquiring and retiring development rights on existing legal parcels in the City.

The in-lieu CTMC fee shall be paid in the following manner: (1) a one-time amount of $150,000 shall be paid to the City, after issuance of the permit by the Commission, at the time of the first recordation by the City of a final subdivision map for any phase of the Project in which at least one residential lot is included; (2) $1,342,500 shall be paid within two years thereafter, or at the t#ne of issuance of the first building permit by the City for a home on a new subdivided parcel or at the time of sale of the first such subdivided residential parcel, whichever occurs first; and (3) $1,342,500 shall be paid within one year thereafter.

The payment of the first $1,342,500 shall fully vest Ailanto's rights to complete all of the homes approved hereby.

The applicant's responsibility to the Commission and the City to mitigate the cumulative traffic impacts of its project is discharged by payment of the in-lieu CTMC fee specified in this Special Condition and the costs specified in Special Condition Number 11, and no further traffic mitigation obligations or exactions will be imposed as part of satisfying the conditions of the City's vesting tentative subdivision map, any other City approval, or the permit. The Commission and the City assume the risk that the in-lieu CTMC fee may not be sufficient to achieve the retirement of development rights on a desired number of parcels.

Correspondingly, the applicant recognizes that it is not entitled to any refund of any portion of this payment in the event that the payment exceeds the amount sufficient to retire development rights on a desired number of parcels, or any refund of the $150,000 one-time payment under any circumstances.

In order to ensure payment of the in-lieu CTMC fee, prior to issuance of the MCDP, the applicant or any successor shall submit to the Executive Director for review and approval a standby letter of credit for the amount of the CTMC fee. The letter shall be from a lender who is sufficiently reputable to assure payment of the funds at the appropriate time. The Executive Director shall approve the letter of credit if the letter is consistent with this condition. After approval by the Executive Director and prior to issuance of the MCDP, the Applicant shall deposit the letter with the Commission. The letter of credit may be revoked California Coastal Commission
34 C~P A·1·HMB-99·022 (Pacific Ridge)
As amended by CDP amendment A .. 1·HMB·99·022·A1
l~ue Date: October 3, 2011
Page Bof 16
by Ailanto only if (a) the in-lieu CTMC fee is paid in full; (b) the permit expires without commencement of development (which includes recordation of a fmal subdivision map); or (c) the applicant surrenderS the permit and relinquishes all rights under it, and reversts any subdivision to conditions existing prior to approval of the permit (including merger of all subdivided parcels). As long as the applicant complies with these requirements, it may revoke the letter of credit under (c) for any reason. The letter of credit shall be interpreted to allow revocation only under the foregoing circumstances, and if the applicant or successor succeeds in revoking the letter of credit under other circumstances without Commission approval, this shall be deemed to be a violation of the permit. The letter of credit shall provide that the Commission may draw funds at arty time a CTMC payment obligation.under the Settlement Agreement is overdue by more than seven calendar days.

The applicant, the City and the Commission anticipate that the flrst final subdivision map for the project will be recorded within three years of approval of the permit and. that the three payments specified in the second paragraph of this conciltion will be made within three years, five years, and six years respectively of that approval ("the Original Timeline"), although these deadlines may be postponed.pursuant to the tOlling provisions of Special condition'No.

13. Any payments made after they would be due under the Original Timeline shall be increased proportionately to any increase in the median home price in San Mateo County between the due date under the Original Timeline and the thne of paym.ent. Median prices shall be based on figures obtained from the San Mateo Councy Associatiort of Realtors.

8. Erosion Control
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicants shall provide, for the 'review and approval of the Executive Director, an Erosion Control Plan to reduce erosion and, to the maximum extent practicable, retain sediment on-site during and after construction. The plan shall. be designed to minimize the potential sources of sediment, control the amount of runoff and its ability to carry sediment by diverting incoming flows and impeding internally generated flows, and retain sediment that is picked up on the project site through the use of sediment-capturing devices. The plan shall ~so limit application, generation, and migration of toxic substances, ensure · the proper storage and disposal of toxic materials, apply nutrients at rates necessary to establish and maintain vegetation without causing significant nutrient runoff to surface waters. The Erosion Control Plan shall incorporate the Best Management Practices (B:MPs) specified below.

1. Erosion & Sediment Source Control
a. Sequence construction to install sediment-capturing devices first, followed by runoff control measures and runoff conveyances. Land clearing activities should only commence after the minimization and capture elements are in place. b. Time the ciearing and grading activities to avoid the rainy season (October 15 through April 30).

California Coastal Com~Jssion
35 ·CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB·99·022·A1
Issue Date: October 3, 2011

c. Minimize the area of bare soil exposed at one time (phased grading). d. Clear only areas essential for construction.
e. Within five days of clearing or inactivity in construction, ·stabilize bare soils through either non-vegetative BMPs, such as mulching or vegetative erosion control methods such as seeding. Vegetative erosion control shall be established within two weeks of seeding/planting.
f. Construction entrances should be stabilized immediately after grading and frequently mamtained to prevent erosion and control dust. g. Control wind-born dust through the installation of wind barriers such as hay bales and/or sprinkling. ·
h. Soil and/or other construction-related material stockpiled on site shall be placed a minimum of 200 feet from all wetlands and drain courses. Stockpiled soils shall be covered with tarps at all times of the year.
i. Excess fill shall not be disposed· of in the Coastal Zone unless authorized through either an amendment to this coastal development permit or a new coastal development permit.

2. Runoff Control and Conveyance
a: Intercept runoff above disturbed slopes and convey it to a permanent channel or storrndrains by using earth dikes, perimeter dikes or swales, or diversions. Use check dams where appropriate.
b. Provide protection for runoff conveyance outlets by reducing flow velocity and dissipating flow energy.

3. Sediment-Capturing Devices
a. Install stormdrain inlet protection that traps sediment before it enters the storm sewer system. This barrier could consist of filter fabric, straw bales, gravel, or sand bags.
b. Install sediment traps/basins at outlets of diversions, channels, slope drains, or other runoff conveyances that discharge sediment-laden water. Sediment traps/basins shall be cleaned out when 50% full (by volume). c. Use silt fence and/or vegetated filter strips to trap sediment contained in sheet flow. The maximum drainage area to the fence should be 0.5 acre or less per 100 feet of fence. Silt fences should be inspected regularly and sediment removed when it reaches 1/3 the fence height. Vegetated filter strips should have relatively flat slopes and be vegetated with erosion-resistant species.

4. Chemical Control
California Coastal Commission
36 CDP A·1·HMB·9.9·022 {Pacific Ridge)
As amended. by CDP amendment A-1-HMB-99·022·A1
Issue Date: October 3, 2011

a. Store, handle, apply, and dispose of pesticides,. petroleum products, and other construction materials properly.
b. Establish fuel and vehicle mainte;nance staging areas located away from all drainage courses, and design these areas to control runoff. c. Develop and implement spill prevention and control measures. d. Provide sanitary facilities for construction workers. e. Maintain and wash equipment and machinery in· confined areas specifically designed to control runoff. Thinners or solvents. should not be discharged. into sanitary or storm sewer systems. Washout from concrete trucks should be disposed of at a location not subject to runoff and more than 50 feet away from a stormd.rain, open-ditch or surface water.
f. Provide adequate disposal facilities for solid waste, including excess asphalt, produced during construction.
g. Develop and implement nutrient management measures. Properly time applications, and work fertilizers and liming materials into the soil to depths of 4 to 6 inches. Reduce the amount of nutrients applied by conducting soil tests to determine site nutrient needs.

B. The applicant shall undertake development in accordance with the final erosion control plans approved by the Executive Director. No proposed changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is required. The applicant shall be fully responsible for advising construction personnel of the requirements of the Erosion Control Plan.

C. Erosion Control Maintenance. All of the above described erosion control measures shall be maintained pursuant to the following requirements.

1. All BMP traps/separators and/or filters shall be cleaned at minimum prior to the onset ofthe storm season and no later than October 15th each year.

2. Sediment·traps/basins shall be 'cleaned out at any time when 50% full (by volume).

3. Sediment shall be removed from silt fences at any time when it reaches 1/3 the fence height.

4. All pollutants contained in BMP devices shall be contained ·and disposed of in an appropriate manner.

5. Non~routine maintenance activities that are expensive but infrequent, such. as detention basin dredging, shall be performed on as needed based on the results of the monitoring inspections described above.

D. Erosion Control Monitoring. Throughout the construction period, the applicants shall conduct regular inspections of the condition and operational status of all structural BMPs California Coastal Commission
37 CDP A-1-HMB-99-022 (Pacific Ridge) ·As amended by CDP amendment A·1-HMB·99·022·A1 Issue Date: October 3, 2011

required by the approved Erosion Control Plan. The applicant shall report the results of the inspections in writing to the Executive Director prior to the start of tlie rainy season (no later than October 15111), after the first storm of the rainy season, and monthly thereafter until April 30th for the duration of the project construction period. Major observations to be made during inspections and reported to the Executive Director shall include: locations of discharges of sediment or other pollutants from the site; Bl\IIPs that are in need of maintenance; BMPs that are not performing, failing to operate, or inadequate; and locations where additional BMPs are needed. Authorized representatives of the Coastal Commission and/or the City of Half Moon Bay shall be allowed to enter the property as needed to conduct on-site inspections throughout the construction period.

9. Storm-water Pollution Prevention
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the review and approval of the Executive Director, a final Storm-water Pollution Prevention Plan (SWPPP). The SWPPP shall demonstrate that the approved development sruill maintain post-development peak nmoff rate and average volume at levels equal to pre-development levels, and reduce the postdevelopment loadings of Total Suspended Solids (TSS) so that the average annual TSS loadings are no greater than pre-development loadings. The SWPPP shall incorporate the Best Management Practices (BMPs) described below.

1. Minimize Creation of Impervious Surfaces
a. Design residential streets for the minimum required pavement widths needed to comply with all zoning and applicable ordinances to support travel lanes, on-street parking, emergency, maintenance and service vehicle access, sidewalks, and vegetated open channels.
b. Minimize the number of residential street cui-de- sacs and incorporate landscaped areas to reduce their impervious cover. The radius of cul-de-sacs should be the minimum required to accommodate emergency and vehicle turnarounds.

Alternative turnarounds shall be employed where allowable. c. Avoid curb and gutter along driveways and streets where appropriate. d. Incorporate landscaping with vegetation or other permeable ground cover in setback areas between sidewalks and streets.
e. Use alternative porous material/pavers (e.g., hybrid lots, parking groves, permeable overflow parking, crushed gravel, mulch, cobbles) to the extent practicable for sidewalks, driveways, parking lots, or interior roadway surfaces. f. Reduce driveway lengths, and grade and construct driveways to direct runoff into adjacent landscaped areas.

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38 CDP A·1·HMB·99·022 (Pacific Ridge)
As amended by CDP amendment A·1-HMB-99-D22-A1
Issue Date: Oct·ober 3, 2011

g. Direct rooftop runoff to permeable areas rather than driveways or impervious s1l!faces in order to facilitate infiltration and reduce the amount of storm-water leaving the site.

2. Roads and Parking Lots
a. Install vegetative filter strips or catch basin in8erts with other media filter devices, clarifiers, grassy swales and berms, or a combination thereof to .remove ormitigating oil, grease, hydrocarbons, heavy metals and particulates from stormwater draining from all roads and parking lots. b. Roads and parking lots should be vacuum swept monthly at a minimum, to remove debris and contaminant residue.

3. Landscaping
a. Native or drought tolerant adapted vegetation should be selected, in order to minimize the need for fertilizer, pesticides/herbicides, and excessive 4TI.gation. b. Where irrigation is necessary, the system must be . designed with efficient technology. At a minimum, all irrigation systems shall have flow sensors and master valves inst~led on the mainline pipe to ens~e system shutdown in the case of pipe breakage. Irrigation master systems shall have an automatic irrigation controller to ensure efficient water distribution. Automatic irrigation controllers shall be easily adjustable so that site watering will be appropriate for daily site weather conditions. Automatic irrigation controllers shall have rain shutoff devices in order to prevent unnecessary operatio~ on rainy days. c. All BMP traps/separators and/or filters shall be cleaned prior to the onset of the storm season and no later than October 15th each year. All pollutants contained in B:MP devices shall be contained and disposed of in an appropriate manner. d. Noil•routine maintenance activities that are expensive but infrequent, such as detention basin dredging, shall be performed on as needed based on the results of the monitoring inspections described below.

B. Storm-water Pollution Prevention Monitoring. The applicant shall conduct an annual inspection of the condition and operational status of all structural B:MPs provided in satisfaction of the approved SWPPP including the detention basin. The results of each ammal inspection shall be reported to the Executive Director in writing by no later than June 30th of each year following the commencement of construction. Major observations to be made during inspections and reported to the Executive Director shall include:
locations of discharges of sediment or other pollutants from the site; BMPs that are in need of maintenance; BMPs that are not performing, failing to operate, or inadequate; and locations where additional BMPs are needed. Authorized representatives of the Coastal Commission and/or the City of Half Moon Bay shall be ailowed to enter the property as neeqed to conduct on-site inspections of the detention basiri and other structural BMPs.

California Coastal. Commission
39 .,,
CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A-1-HMB-99-022-A1
Issue Date: October 3, 2011

C. PRIO~ TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit for the review and approval of the Executive Director a Water Quality Monitoring Plan (WQMP). The WQMP shall be designed to evaluate the effectiveness of the SWPPP to protect the quality of surface and groundwater and shall provide the following:

1. The WQMP shall specify sampling locations appropriate to evaluate surface and groundwater quality throughout the project site, including, but not limited to all major storm drains.

2. The WQMP shall · specify sampling protocols and permitted standards for all identified potential pollutants including, but not necessarily limited to: heavy metals, pesticides, herbicides, suspended solids, nutrients, oil, and grease.

3. Beginning with the start of the first rainy season (October 15 - April 30) following commencement of development and continuing until three years following completion of all grading, landscaping and other earth disturbing work, surface water samples shall be collected from the specified sampling locations during the .first significant storm event of the rainy season and each following month through April30. Sampling shall continue thereafter in perpetuity on an annual basis during the first significant storm event of the rainy season.

4. Results of monitoring efforts shall be submitted to the Commission upon availability.

D. If any water quality standards specified in the WQMP are exceeded, the applicant shall assess the potential sources ofthe pollutant and the potential remedies. If it is determined based on this assessment that applicable water quality standards have not been met as a result of inadequate or failed BMPs, corrective actions or remedies shall be required. If potential remedies or corrective action constitute development, as defined in Section 30106 ofthe Coastal Act, an amendment to this permit shall be required.

E. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall execute and record a deed restriction over the project site, in a form and content acceptable to the Executive Director, reflecting the above restrictions on development. The deed restriction shall include legal descriptions of the applicant's. entire parcel(s). The deed restriction shall run with the land, binding all successors and assigns, and shall be recorded free of prior liens that the Executive Director determines may affect the enforceability of the restriction. This deed restriction shall not be. removed or changed without a Commission amendment to this coastal development permit

10. Grading Plan
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the review and approval of the Executive Director, a Final Grading Plan specifying:

California Coastal Commission
40 CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB-99-022-A1
Issue Date: October 3, 2011
P~ge 14 of 16

1. The respective quantities of cut and fill and the final design grades and locations for all project related grading, including building foundations, streetS, . drainage, and utilities.

2. The phasing of all grading during colistruction.

B. Grading shall be conducted in strict conformity to the approved Grading Plan, Erosion Control Plan, SwPPP, and habitat protection measures specified in Special Conditions 6, 9 and 10.

11. Project Site Access
Terrace Avenue may be used as the vehicular access route for the Project, and for required development and construction. The applicant shall be responsible for repairing any damage to Terrace Avenue caused by development and construction. In addition· to the in-lieu CTMC fee requiied by Special Condition Nuinber 7, the applicant shall also pay an in-lieu fee in an amount equal to the costs of signalization, and the widening of Highway 1 necessary therefor, at the intersection of Terrace Avenue and Highway 1, up to the standards therefor of the California Department of Transportation. The money shall be expended to mitigate traffic impacts from the approved Pacific Ridge subdivision by either funding improvements to the intersection of California State Highway One and Terrace A venue, located in the City) or funding alternative tr~c improvements in the vicinity that have been approved for this funding by the Executive Director of the Commission.

12. Raptor Protection

PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit; for ·the review and approval of the Executive Director, a biological survey conducted by a qualified biologist/ornithologist that demonstrates that no development involving physical construction, including grading, shall occur within I 00 feet of any nesting habitat for any state or federally listed species of raptor.

13. Expiration
If development (which includes recordation of a final subdivision map for any portion of the project) has not commenced, this permit will expire three years following approval by the Commission. Development shall be pursued in a diligent manner and completed in a reasonable period oftime. Application for extension of the permit must be made prior to the expiration date. The expiration date of this permit shall. be tolled, without regard to the length of time, for the same time as the time during which litigation is pending challenging the validity of that Settlement Agreement between the applicant, the Commission and the City of Half Moon Bay, or challenging the Commission's or the City's approval of that Settlement Agreement or the permit, or challenging the coastal development permits described in Paragraph 7 of that Settlement Agreement. The expiration date of this permit shall also be tolled during any period of time that an administrative appeal is pending before California Coastal Commission
41 CDP A·1-HMB·99·022 (Pacific Ridge)·
As amended by CDP amendment A·1~HMB~99~022~A1
Issue Date: October 3, 2011

the Commission involving either of these coastal development permits,. and for the time necessary to obtain CalTrans approval for construction of the improvements authorized by the Terrace CDP, all as specified in Paragraph 7 of that Settlement Agreement. In addition to these tolling provisions, the Commission shall grant further extensions of the permit unless there are changed circumstances affecting the consistency of the permit with the LCP. See 14 Cal. Code Regs. Section 13169. Moratoria and incremental worsening of regional traffic conditions shall not constitute "changed circumstances" precluding permit extensions.

Litigation shall be considered "pending" for purposes of this condition from the earliest date on which a lawsuit or lawsuits is or are commenced until the date on which: (a) a final judgment or decree has been entered in any and all such lawsuit(s) and all applicable judicial appeal periods with respect thereto have expired, with no pending or contested actions, (b) a request for voluntary dismissal of any and all such lawsuit(s) has been filed and dismissal has been entered by the Court, or (c) a settlement has been entered into by the parties to any and all such lawsuit(s) on mutually agreeable terms and conditions.

14. Deed Restriction
Prior to issuance of the permit, as amended, the applicant shall submit to the Executive Director for review and approval documentation demonstrating that the applicant has executed and recorded against the parcel(s) governed by this permit a deed restriction, in a form and content acceptable to the Executive Director: (1) indicating that, pursuant to this permit, the California Coastal Commission has authorized development on the subject property, subject to terms and conditions that restrict the use and enjoyment of that property; and (2) imposing the Special Conditions of this permit as covenants, conditions and restrictions on the use and enjoyment of the Property. The deed restriction shall include a legal description of the entire parcel or parcels governed by this ·permit. The deed restriction shall also indicate that, in the event of an extinguishment or termination of the deed restriction for any reason, the terms ·and conditions of this permit shall continue to restrict the use and enjoyment of the subject property so long as either this permit or the development it authorizes, or any part, modification, or amendment thereof, remains in existence on or with respect to the subject property.

15. Settlement Agreement

PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit evidence that the Settlement Agreement is final and binding on all parties, or shall submit a letter stating that the applicant relinquishes all rights to terminate the Settlement Agreement.

16. Water Supply

PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, AS AMENDED, the applicant shall submit, for the review and approval of the Executive Director, a water supply plan that has been approved by th~ Coastside County Water District.

California Coastal Commission
42 .. CDP A-1-HMB-99-022 (Pacific Ridge)
As amended by CDP amendment A·1·HMB-99•022-A1
Issue Date: October 3, 2011

The plan shall show that water will be supplied to the development via a pipeline under Terrace A venue that is the minimum size necessary to serve the Pacific Ridge development only. If water service is proposed to be provided to the development via a pipeline from the Carter Hill tanks or the Carter Hill pipeline, or from any other location besides Terrace A venue, a Commission amendment to this coastal development permit will be required.

Consistent with paragraph 7(e) of the settlement agreement, if a water line from the Carter Hill tanks or 'pipeline is proposed to supply the project, the City of Half Moon Bay will require a coastal development permit.

17. Construction Responsibilities
The permittee shall comply with the following construction-related requirements:

A. Construction equipment and worker vehicles shall be staged and parked on the project site.

B. The applicant shall notify the City 24 hours in advance if more than 25 worker vehicles are to exit the site during the PM peak-hour, and reimburse the City for the cost of any resulting traffic controls at the intersection of Terrace Avenue and Highway 1.

C. The applicant shall maintain Terrace Avenue free of dirt and debris throughout project construction.

D. Except in cases of ~mergency, heavy construction vehi'?les shall only access the site between 10:00 a.m. and 3:00p.m.

E. The applicant shall install speed bumps on Terrace A venue, if required by the City.

F. The applicant shall pay for any repairs required due to the construction traffic.

California Coastal Commission
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61

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: John Doughty, Public Works Director
Maziar Bozorginia, City Engineer
Jonathan Woo, Assistant Engineer
TITLE: CONSTRUCTION CONTRACT AWARD FOR THE KELLY AVENUE CROSSWALKS PROJECT (CIP PROJECT NO. TBD)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to:
1) Direct the Administrative Services Director to transfer $265,000 from the Pavement Management and Traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD).
2) Award and execute a construction contract to the lowest responsive and responsible bidder, Innovate Concrete, Inc., of Santa Clara, California, in the total bid amount of $189,853.41 and approve an additional contingency amount of $28,478.01 (15 percent) for a total construction budget amount of $218,331.42.

FISCAL IMPACT:

City Staff is requesting a budget transfer of $265,000 from the Pavement Management and Traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD).

There is sufficient funding in the Pavement Management and Traffic Safety Program to cover the costs of this request. This request includes previously expended funds (~$30,000) for design as well future construction related expenses.

To help support the funding for this project, Cabrillo Unified School District applied for a Safe Route to School’s Grant and was awarded $14,000. This amount is included in the budget transfer request.
62

Anticipated Project Expenditures:

The following are the estimated project expenditures:

Construction $189,853.41
Construction Material Testing and Special Inspection $15,000.00 Construction Contingencies (15%) $28,478.01
Construction Total $233,331.42
STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety and the Infrastructure and Environment of the Strategic Plan.

BACKGROUND:

The City of Half Moon Bay received various complaints regarding crossing safety at the Pilarcitos Avenue and Alsace Lorraine Avenue intersections along Kelly Avenue. Speeding, vehicles rolling through stop signs, pedestrian safety, are amongst the main issues that were brought to City’s attention. The intersections of interest are two important locations mentioned for recommendation within the Bicycle and Pedestrian Master Plan. These intersections are also considered in the safe route to school study conducted in November 2013 by Fehr & Peers.

Considering the various safety complaints received regarding these two intersections, the need for improvements at these locations are necessary.

The Kelly Avenue Crosswalks Project (formerly titled intersection project) is located on Pilarcitos Avenue and the Alsace Lorraine Avenue intersections along Kelly Avenue. Minor additions are also proposed between the two intersections.

At the Alsace Lorraine intersection, scope of work includes the implementation of two new high visibility crosswalks to aid pedestrians crossing Kelly Avenue and Alsace Lorraine Avenue. One of the two new crosswalks, specifically the eastern leg of the intersection, will include a raised crosswalk feature to slow vehicles down to ensure safety for all modes of transportation. A new curb ramp is proposed to be installed on the northeastern corner of the intersection for ADA accessibility, and the existing southeastern curb ramp will be upgraded to comply with current ADA standards.

At Pilarcitos intersection, scope of work includes the implementation of two new high visibility crosswalks on both the northern and eastern legs of the intersection. In addition, City Staff intends to refresh the existing crosswalks on the other two legs. The project also proposes to upgrade the northeastern curb ramp to comply with current ADA Standards. To further aid safe pedestrian crossing at this intersection, four rapid-flashing solar-powered beacons are proposed to be installed to visually alert vehicular and bicycle traffic at the intersection.

Additional scope of work at these two intersections are minor pavement restoration and updating signage in the vicinity. In addition, between the two intersections of interest, the 63

project also proposes to install two speed feedback signs, facing both westbound and eastbound traffic, to make drivers aware of their vehicular speed within the vicinity.

City Staff presented the project scope to both the Bicycle Pedestrian Advisory Committee on January 13, 2022, and the Cabrillo Unified School District on January 20, 2022, from which, positive feedback was provided. Notices were also provided to specific residents that would be impacted by these proposed changes on March 10, 2022.

On April 19, 2022, the City initiated circulation of a request for public bids for the now called Kelly Avenue Crosswalks Project.

BID SUMMARY:

The City received four (4) bids before the scheduled bid opening time and date of 2:00 PM on May 10, 2022. The engineer’s estimate and submitted bids are summarized as follows:

Bidder Total
Engineer’s Estimate $182,697.00
Innovate Concrete, Inc. $189,853.41
Andreini Brothers, Inc. $197,039.00
Golden Bay Construction, Inc. $199,945.00
Tennyson Electric, Inc. $345,496.00
DISCUSSION:

Innovate Concrete, Inc. was deemed the lowest responsible and responsive bidder. Innovate Concrete, Inc.’s bid is approximately 3.92% above the Engineer’s Cost Estimate. Construction contingency and material testing and inspection services will also be required for construction.

Due to the current expended design funds, construction contract, contingencies, and material testing and special inspection services, $265,000 is being requested to be transferred from the Pavement Management and Traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD) project budget.

After the bid opening, the City received a bid protest from the second lowest bidder. However, after review by the City Engineer and City Attorney, it was determined that the protest had no basis and therefore are recommending awarding to the lowest responsible and responsive bidder in accordance with State law.

Staff recommends City Council authorize entering into a construction contract with Innovate Concrete, Inc. for the project and make the appropriate budget transfers to the project.

ATTACHMENT:

1. Resolution

2. New Project CIP Page
64 RESOLUTION NO. C-2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

TO AUTHORIZE THE CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT WITH INNOVATE CONCRETE, INC., OF SANTA CLARA, CALIFORNIA, IN THE AMOUNT OF $189,853.41, APPROVE A CONSTRUCTION CONTINGENCY IN AN AMOUNT NOT EXCEEDING 15 PERCENT, OR $28,478.01 FOR A TOTAL CONSTRUCTION BUDGET AMOUNT OF $218,331.42, AND AUTHORIZING THE ADMINISTRATIVE SERVICES DIRECTOR TO TRANSFER $265,000 FROM THE PAVEMENT MANAGEMENT AND TRAFFIC SAFETY PROGRAM (CIP NO. 0514) TO THE KELLY AVENUE CROSSWALKS PROJECT (CIP NO. TBD)
WHEREAS, this project was initially named and bid as the “Kelly Avenue Intersections Project”; and
WHEREAS, due to the confusion of the future Kelly Avenue and HWY 1 Intersection Project, this project will now be named as the “Kelly Avenue Crosswalks Project”; and WHEREAS, the Kelly Avenue Crosswalks Project includes new pedestrian, bicyclist, and vehicular safety improvements and ADA compliant upgrades at and between the Pilarcitos Avenue and Alsace Lorraine Avenue intersections along Kelly Avenue; WHEREAS, City Staff presented the project and received positive feedback from both the Bicycle Pedestrian Advisory Committee on January 13, 2022, and the Cabrillo Unified School District on January 20, 2022;
WHEREAS, the City advertised and opened four (4) responsive bids received at the scheduled time, date and place as set forth in the Public Contract Code for the “Kelly Avenue Crosswalks Project”; and
WHEREAS, the lowest responsive and responsible bid was submitted by Innovate Concrete, Inc., of Santa Clara, California, in the total amount of $189,853.41; and WHEREAS, with the transfer of $265,000 from the Pavement management and traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD), sufficient funds will be available to award this contract and complete the project; WHEREAS, there is sufficient funding in the Pavement Management and Traffic Safety Program (CIP No. 0514) to cover the costs of this request.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Accepts the submitted four (4) responsive bids; and
2) Authorizes the City Manager to award and execute a contract to the lowest responsive and responsible bidder, Innovate Concrete, Inc., of Santa Clara, 65 California, in the total amount of $189,853.41, and approve a construction contingency in an amount not exceeding 15 percent, or $28,478.01, of the contract award amount for potential change orders; and
3) Authorizes the Administrative Services Director to transfer $265,000 from the Pavement Management and Traffic Safety Program (CIP No. 0514) to the Kelly Avenue Crosswalks Project (CIP No. TBD).
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June 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
66 Category: TBD
Project Location:

Type:

Initial Funding: FY 21‐22 Estimated Completion: 123 Fund Name: Streets and Roads XX

PRIOR YEARS BUDGET

EXPENDITURES
FY 21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FUTURE YEARS TOTAL ALL FY $ 30,000 $ 30,000$ 15,000 $ 15,000
$ 220,000 $ 220,000
$ ‐
$ ‐ $             ‐ 265,000 $                        ‐ $                     ‐ $                           ‐ $                     ‐ $ $ 265,000

PRIOR YEARS BUDGET

ALLOCATIONS
FY 21‐22 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FUTURE YEARS TOTAL ALL FY $ ‐
$ 251,000 $ 251,000
$ 14,000 $ 14,000
$ ‐
$ ‐ $             ‐ 265,000 $                        ‐ $                     ‐ $                           ‐ $                     ‐ $ $ 265,000

SOURCE(S) OF FUNDS
General Fund
Street and Road ‐ Fund 123Safe Routes to Schools GrantUNFUNDED TOTAL
Engineering & DesignProf.Serv/Env.ConstructionPM‐CM
TOTAL
Fiscal Sustainability ADDITIONAL DETAILS:Inclusive Governance Accomplishments in FY 21‐22 include completion of the 100% design documents, and advertizing for bids. The project is anticipated to start construction in June 2022 and last throughout the summer break. Work completed in FY 21‐22 was funded through the Pavement Management and Traffic Safety Program (#0514).

EXPENDITURES
JUSTIFICATION:

Highway 1 and Kelly Avenue have been identified by the City Council, the Cabrillo Unified School District, Caltrans and the public as an intersection of concern. The City is obligated to extend the left turn stacking by two cars as a mitigation measure for the New Library.

The City has received many complaints and concers from residents regarding speeding, pedestrian safety, and other concerns, specifically at the two intersections of interest, one being fronting the Cabrillo Unified School District Office, and being a major corridor for arriving to the school.

STRATEGIC PLAN GOAL (please check all that apply)
InfrastructureCommunity Enhancement/Public Safety Status: NEW FY 22‐23 Fund Number:

DESCRIPTION:
image
This project focuses on the two intersections of Pilarcitos Avenue and Alsace Lorraine Avenue along Kelly Avenue.

The scope of the project includes installation of new high visibility crosswalks at both intersections, refresh of the existing crosswalks, installation of a a new curb ramp for ADA accessibility, upgrade of the existing curb ramps to comply with ADA standards, and minor pavement restoration.

Healthy Community/Public Safety
PROJECT TITLE: KELLY AVENUE CROSSWALKS
Streets Project Number:

Kelly Avenue at intersections of Pilarcitos Ave. and Alsace Lorraine Ave. Lead Department: Public Works 67 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Matthew Chidester, Deputy City Manager
Kenneth Stiles, Finance Manager
TITLE: LIBRARY CAPITAL FUND REIMBURSEMENTS
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the transfer of $910,745 from the Library Capital Fund (F153) to the General Fund (F101) as reimbursement of payments to the County of San Mateo for the Library Construction Loan.

FISCAL IMPACT:

The Library Capital Fund currently has a balance of $1,332,745. Approval of this recommendation will leave $422,000 remaining in the fund until any and all outstanding items related to the Library Construction Project have been finalized and paid.

STRATEGIC ELEMENT:

This action supports the Fiscal Sustainability element of the Strategic Plan.

BACKGROUND:

The new Half Moon Bay Library was opened in August 2018. Under the previous County Library JPA agreement, the costs of constructing the facility were shared by the City and the County of San Mateo. Of the approximately $12 million City portion, $6 million was paid in cash from City reserves (including nearly $1 million from community donations), with the remaining $6 million paid out of the proceeds of an interest free loan from the County. The JPA contributed more than $1 million for the furniture, fixtures, and equipment, as well as the library collections.

On September 3, 2019, the Council adopted a resolution formally accepting the completion of the library construction and finalizing payment to the contractor for the project. The remaining balance of funds in the City’s Library Capital Fund (F153), which included a combination of City funds, County funds, loan proceeds, and capital donations, were to be used to fund the semiannual loan payments to the County and a potential parking project related to the construction of the library.
68 Since the completion of the library, and in accordance with the loan agreement, the County deducts a portion of the City’s semi-annual tax allotment for the loan payments. The City has paid a total of $1,718,056, which is recognized in the General Fund. The City will continue to pay $572,685.50 per year from the City’s tax allotment for an additional seven years until the loan has been repaid.

DISCUSSION:

Staff recommends transferring $910,745 from the Library Capital Fund to reimburse the general fund for the debt service payments on the project, which can be used to fund other City activities and projects. This action would leave $422,000 in the Fund, $211,000 of which are the County’s, to cover any costs related to a potential parking project. If the project does not move forward, the County’s funds will be returned to the County and the remaining $211,000 will be available for return to the general fund or used for additional improvements or maintenance at the library.

The City also has commitments of an additional $45,000 in capital donations, which will be received directly from the donor over the next four years and credited to the general fund to help offset the debt service payments to the County.

ATTACHMENT:

Resolution authorizing the Administrative Services Director to transfer $910,745 from the Library Capital Fund (F153) to the General Fund (F101) as reimbursement of payments to the County of San Mateo for the Library Construction Loan
69 RESOLUTION NO. C-2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE ADMINISTRATIVE SERVICES DIRECTOR TO TRANSFER $910,745 FROM THE LIBRARY CAPITAL FUND (F153) TO THE GENERAL FUND (F101) AS REIMBURSEMENT OF PAYMENTS TO THE

COUNTY OF SAN MATEO FOR THE LIBRARY CONSTRUCTION LOAN
WHEREAS, in August 2018, the City opened the new Half Moon Bay Library, which was constructed as a joint project between the city, the County of San Mateo, and the San Mateo County Library JPA; and
WHEREAS, under the previous County Library JPA agreement, the costs of constructing the facility were shared by the City and the County; and WHEREAS, the total cost of the library was approximately $24 million, and of the approximately $12 million City portion, $6 million was paid in cash from City reserves, with the remaining $6 million paid out of the proceeds of an interest free loan from the County; and WHEREAS, since the completion of the library, and in accordance with the loan agreement, the City has repaid a total of $1,718,056 to the County, which is recognized in the General Fund; and
WHEREAS, the Library Capital Fund, which was established to manage the funding for the construction of the library, has a current balance of $1,332,745, including a combination of City funds, County funds, loan proceeds, and capital donations; and WHEREAS, a portion of these funds can be transferred to the General Fund as reimbursement for the loan payments paid to the County, where the funds can be used for other important City projects and programs; and
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the Administrative Services Director to transfer $910,745 from the Library Capital Fund (F153) to the General Fund (F101) as reimbursement of payments to the County of San Mateo for the Library Construction Loan.
70 ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June, 2022 by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ATTEST: APPROVED:
__________________________ _____________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor
71

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Robert Nisbet, City Manager
FROM: John Doughty, Public Works Director
Maziar Bozorginia, City Engineer
Jonathan Woo, Assistant Engineer
TITLE: SB 1 LOCAL STREETS AND ROAD IMPROVEMENT PROJECT LIST – FY 2022-23 ______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution approving the Pavement Management and Traffic Safety Program and the Poplar Complete Streets Project as the dedicated projects for Road Maintenance and Rehabilitation Account (RMRA) Funding.

FISCAL IMPACT:

There is no fiscal impact associated with the approval of the program. Approving the project list will retain Half Moon Bay’s eligibility for RMRA funds from the State. It is estimated that the City will receive approximately $280,579 in additional funds in FY 2022-23. These program funds are brought before the City Council for allocation and approval through the annual budget.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment, Healthy Communities and Public Safety, and Fiscal Sustainability Elements of the Strategic Plan.

BACKGROUND:

On April 28, 2017, the Governor signed Senate Bill (SB) 1 which is known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system (http://catc.ca.gov/programs/sb1/lsrp/). SB 1 is funded from an increase (per gallon) of fuel excise taxes, increases in diesel fuel sales taxes, and increases to vehicle registration fees. SB 1 includes provision for inflationary adjustments to tax rates in subsequent years.

On November 1, 2017, the State Controller started to deposit the additional revenues into a newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding is being apportioned by formula to eligible cities and counties pursuant to 72

Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects through the Local Streets and Roads (LSR) Program.

On March 21, 2018, The California Transportation Commission (CTC) adopted the updated reporting guidelines for the Road Maintenance and Rehabilitation Account Local Streets and Roads Funding Program, which requires jurisdictions to identify the use of RMRA funds in an adopted resolution. It also requires a project expenditure report at the end of the year detailing the description, location, amount of funds expended, and estimated useful life of improvements constructed with program funding.

The City, since enactment, has received annual allocations from the Local Streets and Roads (LSR) Program. These funds have been designated via Council adopted resolutions primarily to the City’s general road maintenance and pavement management efforts.

DISCUSSION:

In FY 2022-23, the City’s LSR allocation is estimated to increase from $254,950 to approximately $280,579 with the new RMRA funds. While we appreciate the funding provided, the amount received annually does not come close to meeting the capital repair and construction needs of the City. These funds are often combined with other City funds, including the General Fund and, where possible, supplemented/leveraged with grant funds and/or benefit assessment districts.

The objective of the Local Streets and Roads Program is to address deferred maintenance on local streets and roads system through the prioritization and delivery of basic road maintenance and rehabilitation projects as well as critical safety projects. The adopted Capital Improvement Program (CIP) includes the annual Pavement Management and Traffic Safety Program that addresses the types of projects/improvements envisioned under SB 1.

Additionally, the City has more specific capital projects, notably the Poplar Traffic Calming and Safety Project, that are also eligible to be funded under SB 1.

The focus of the Pavement Management and Traffic Safety Program (CIP No. 0514) for FY 2022- 23 will be on the rehabilitation of existing streets throughout the City. Rehabilitation is intended to extend the useful life of existing streets and reduce road hazards such as cracks and potholes which in turn will maintain/improve the City’s Pavement Condition Index rating.

Street rehabilitation benefits many users including bicyclist and mass transit. The City intends to commence with design of reconstruction of Belleville Boulevard within this Program as well.

The intent of this work is to establish a basis for discussion with community members on the funding of the reconstruction including the possible formation of a Benefit Assessment District.

There are eighteen (18) properties on Belleville Boulevard that have entered into deferred street improvement agreements which will either need to be “called” or converted to a benefit assessment district funding option.

In addition to the pavement management program, Staff is currently working several specific capital projects that will improve pavement conditions and safety for all modes of 73

transportation and are thus eligible to receive SB 1 funding. The following is a sampling of specific eligible projects staff is currently working on. Staff is finalizing the Main Street Safety Improvements Project (CIP No. 1009) which includes slurry seal of portions of Main Street, Johnston Street, Mill Street and Correas Street in the downtown. For more information on this project, please visit the project webpage: https://www.half-moon-bay.ca.us/759/Main-StreetTraffic-Safety-Project. By the Winter of 2022, staff will complete to the design of the Poplar Street Traffic Calming and Safety Project (CIP No. 0593) which will improve accessibility for both pedestrians and bicyclists, and repair street sections of Poplar Street from Railroad Avenue to Main Street, excluding HWY 1. Construction funding is being supplemented with a $1.2 million OBAG 2 grant.

Due to the broad and applicable scope of the Pavement Management and Traffic Safety Program and the limited amount of funding that the City expects to receive from the LSR Program, staff is recommending that the City identify the Pavement Management and Traffic Safety Program of the CIP as the project recipient of RMRA Funding. It is important to note that adoption of the proposed project list does not limit the flexibility of the City to fund projects in accordance with local needs and priorities as long as the projects are consistent with RMRA priorities.

ATTACHMENT:

1. Resolution

2. Estimated SB 1 Funding Sheet FY 2022-23
74 RESOLUTION NO. C-2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23 TO BE FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Half Moon Bay must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Half Moon Bay, will receive an estimated $280,579 in RMRA funding in Fiscal Year 2022-23 from SB 1; and
WHEREAS, this is the fifth year in which the City of Half Moon Bay is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Half Moon Bay has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Half Moon Bay used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Half Moon Bay maintain and rehabilitate several streets/roads and add active transportation infrastructure throughout the City this year and hundreds of similar projects into the future; and WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and
75 WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Half Moon Bay, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2022-23 Road Maintenance and Rehabilitation Account revenues:

Project Title: Main Street Safety Improvement Project
Project Description: Project includes slurry sealing the limits of the project, while also upgrading crosswalks for additional visibility, and some signage. The project also includes the implementation of Class II and Class III Bicycle Lanes within project limits.

Project Location: Main Street from North HWY 1 to Mill Street, excluding the HWY 1 and HWY 92 intersections, Mill Street from Main Street to Johnston Street, Johnston Street from Mill Street to Correas Street, Correas Street from Johnston Street to Main Street Estimated Project Schedule: Start 08/22 – Completion 11/22 Estimated Project Useful Life: 10 – 15 Years

3. The following previously proposed and adopted projects may also utilize Fiscal Year 2022- 23 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

Project Title: Pavement Management & Traffic Safety Program Project Description: The project involves pavement maintenance, such as slurry sealing, crack sealing, and more, to prolong the usable life of existing streets by utilizing the most recent Pavement Management Survey completed in April 2022. This project will also include the design of Belleville Boulevard, which is in great need of reconstruction. Funds from this project will also look into installing Bike Lanes as described in the City's Bike/Ped Master Plan.

Project Location: Various Locations in Half Moon Bay Jurisdiction.

Estimated Project Schedule: Start (07/22) – Completion (06/23) Estimated Project Useful Life: 10 – 30 Years
Project Title: Poplar Street Traffic Calming and Safety Project Project Description: The project includes pavement rehabilitation, sidewalk and decomposed granite pathway installation for better accessibility for pedestrians and 76 installing Class 3 bike lanes for bicyclists. Treatment of stormwater runoff and additional complete street elements will be part of this project.

Project Location: Poplar Street from Railroad Avenue to Main Street, excluding HWY 1.

Estimated Project Schedule: Start (03/23) – Completion (12/23) Estimated Project Useful Life: 15 – 30 Years
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7
th day of June 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
77 Local Streets and Roads - Projected Revenue
s
2021-22 2022-23
Estimated January 2022 Hwy Users Ta
x Road Mntnc TOTAL Hwy Users Ta
x Road Mntnc TOTAL
Account Rehab Acct Account Rehab Acct
SAN LUIS OBISPO COUNTYARROYO GRANDE 363,608 476,254 839,862 529,739 400,160 929,900ATASCADERO 613,566 799,600 1,413,167 889,854 675,246 1,565,100EL PASO DE ROBLES 643,599 838,211 1,481,811 932,882 708,299 1,641,180GROVER BEACH 272,494 358,118 630,611 398,200 299,887 698,087MORRO BAY 211,972 280,311 492,282 311,491 233,281 544,771PISMO BEACH 167,937 222,700 390,637 247,402 184,819 432,222SAN LUIS OBISPO 953,976 1,237,231 2,191,208 1,377,557 1,049,877 2,427,434Count y of San Luis Obis
p
o 8,172,657 9,477,591 17,650,248 10,580,267 8,994,229 19,574,496 Total Cities & County: San Luis Obispo 11,399,809 13,690,016 25,089,825 13,690,016 11,399,809 25,089,825 SAN MATEO COUNTYATHERTON 143,206 186,701 329,907 207,376 157,602 364,979BELMONT 548,260 699,544 1,247,804 778,699 603,375 1,382,074BRISBANE 94,843 124,945 219,787 138,638 104,377 243,014BURLINGAME 616,114 784,785 1,400,899 873,737 678,050 1,551,787COLMA 34,362 48,967 83,329 53,928 37,816 91,744

DALY CIT
Y 2,249,357 2,840,525 5,089,882 3,165,276 2,475,477 5,640,754 EAST PALO ALTO 628,624 800,501 1,429,125 891,259 691,818 1,583,077FOSTER CITY 680,240 865,342 1,545,582 963,552 748,622 1,712,175HALF MOON BAY 254,950 328,078 583,028 364,886 280,579 645,466HILLSBOROUGH 235,936 304,192 540,128 338,255 259,654 597,909MENLO PARK 721,313 916,940 1,638,253 1,021,079 793,824 1,814,904MILLBRAE 466,218 595,480 1,061,697 662,790 513,085 1,175,875PACIFICA 784,797 996,690 1,781,487 1,109,996 863,690 1,973,685PORTOLA VALLEY 94,449 124,450 218,899 138,086 103,944 242,030REDWOOD CIT Y 1,764,332 2,228,719 3,993,051 2,483,445 1,941,695 4,425,140 SAN BRUNO 930,737 1,180,026 2,110,763 1,314,401 1,024,301 2,338,702SAN CARLOS 617,522 786,555 1,404,077 875,709 679,600 1,555,310SAN MATEO 2,134,319 2,696,011 4,830,330 3,004,154 2,348,876 5,353,030SOUTH SAN FRANCISCO 1,390,534 1,759,140 3,149,673 1,959,898 1,530,320 3,490,218WOODSIDE 116,570 153,239 269,809 170,069 128,288 298,358Count y of San Mateo 10,808,951 15,052,200 25,861,151 16,764,876 11,895,542 28,660,418 Total Cities & Count
y: San Mateo 25,315,633 33,473,030 58,788,663 33,473,030 25,315,633 58,788,663 January 2022 CaliforniaCityFinance.com Page 16 of 21
78 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Robert Nisbet, City Manager
FROM: John Doughty, Public Works Director
Maziar Bozorginia, City Engineer

TITLE: RESOLUTIONS OF LOCAL SUPPORT FOR MULTIPLE GRANT PROGRAMS ______________________________________________________________________________ RECOMMENDATION:

Adopt resolutions authorizing staff to file applications and providing local support for the following grants:

1. ACR/TDM Grant for the Midcoastside Traffic Demand Management Plan

2. ACR/TDM Grant for “Pedal for a Purpose” E-Bicycle Pilot Program

3. ATP Grant: Eastside Parallel Trail North – Segment 2 (Spindrift Way to Ruisseau Francais)

4. ATP Grant: Eastside Parallel Trail – South (Higgins Canyon to Miramontes Point)

5. OBAG 3 Grant: Kelly Avenue Complete Streets Project
FISCAL IMPACT:

There is no financial impact associated with this action. The cost to prepare each of the grant applications is being borne by the operating budget of the City Manager’s Office and Public Works Department.

STRATEGIC ELEMENT:

This recommendation supports all elements of the Strategic Plan: Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, and Inclusive Governance.

BACKGROUND:

As presented in the May 3, 2022, City Council Meeting, City Staff recommended 23 projects and 18 capital programs to be funded in the Fiscal Year 2022-23 City Capital Budget. Throughout the recommended 5-Year Capital Improvement Program, 49 projects and 18 programs are proposed to be funded. The total 5-year anticipated expenditures for the 67 projects and programs listed in the proposed 5-Year CIP equates to $114,007,644 with a total of $72,791,000 unfunded. It is not unusual to identify future projects as the Capital Improvement Program is a planning and budgetary document and to have a significant amount of programming 79 “unfunded.” The FY 2021-22 and the proposed FY 2022-23 capital budgets supplement City General and other funds with grant funding from many sources. Given the ongoing need for funding of capital projects and capital maintenance, staff continues to monitor the availability of grant funds and to align application submittals with City Council identified priorities. Grant funds vary significantly by source and program objective. Many grants are focused on funding construction of approved shovel-ready projects while others provide funding or a portion of funding for initial planning, design, environmental review and entitlements. Finally, other grant programs provide funding for programmatic efforts. City staff look for opportunities within all programs to match community needs and Council priorities.

Over the course of normal business, Public Works Staff evaluate and disseminate emails from the Metropolitan Transportation Commission (MTC), City/County Association of Governments of San Mateo County (C/CAG), San Mateo County Transportation Authority (SMCTA), California Department of Transportation (Caltrans) and other agencies regarding the call for projects/grant opportunities. Recently Public Works was made aware of several grant opportunities within the Active Congestion Relief/Transportation Demand Management (ACR/TDM), the One Bay Area Grant Program – Cycle 3 (OBAG 3), and the Active Transportation Plan Grant (ATP) programs. These grant programs offer opportunities to implement the capital program consistent with City Council strategic priorities. Further, based upon research, experience, and conversations with funders, staff believes the City can make viable arguments for funding and be competitive with other Cities and Counties.

The City has had some previous success when applying for grants, including funding obtained from a previous Cycle of OBAG Grants, Measure A Grants, and others. For example, the Poplar Traffic Calming and Safety Project received $1.2 million in funding from OBAG 2 Grant several years ago which will help fund a portion of construction anticipated in 2023. Public Works will continue to evaluate grant funding opportunities and apply for other grants that align with City Council strategic priorities and as time permits.

DISCUSSION:

Public Works is currently in the process of preparing and submitting five grant applications under three different transportation-related programs. At this point, two applications have already been submitted based upon posted deadlines. Each of the grant applications require, prior to award, the City Council adopt Resolutions of Support for the application. Staff is requesting City Council adoption of resolutions supporting the grant applications. The following is a brief synopsis of each of the grant applications that have been or are in the process of being prepared by Public Works, of which, staff is seeking Council support.

SAN MATEO COUNTY ACR/TDM PROGRAM
The San Mateo County ACR/TDM program is a local funding program created by the San Mateo County Transportation Authority (SMCTA) to create a consolidated Measure A and Measure W program (transportation related sales tax initiatives) to encourage the use of sustainable transportation options and enhance mobility across San Mateo County. The program’s major 80 focus is to encourage cities to apply for funding Citywide Transportation Demand Management (TDM) plans that could identify projects and programs for future funding cycles.

The ACR/TDM Program includes funding for three sub-categories, Intelligent Transportation System Planning & Design; TDM Projects/Programs; and TDM Planning. Each sub-category requires a standard match of 10% and the program has specific funding goals for small/coastal communities. Staff from Public Works and the City Manager’s Office worked to submit two applications on May 27, 2022 in response to a call for projects from the San Mateo County ACR/TDM Program. One in response the Planning Grant category for a Midcoastside TDM Plan and another in response to the TDM Programs Category for “Pedal for a Purpose,” an E-bicycle subsidy program for low-income workers that live within 12 miles of the City of Half Moon Bay.

ACR/TDM PLANNING: MIDCOASTSIDE TRAFFIC DEMAND MANAGEMENT PLAN Staff submitted a funding request for $100,000 from SMCTA with a 10% match ($10,000) to hire a consultant to develop a Midcoastside TDM Plan in conjunction with San Mateo County. The proposed project is envisioned as a joint Plan for the City of Half Moon Bay and Unincorporated Urban Midcoast of San Mateo County (Miramar, El Granada, Moss Beach and Montara). The proposed Midcoastside TDM Plan will identify and evaluate complementary strategies that will support reduced congestion and traffic for residents and visitors. The project will engage the public and relevant agencies/organizations; examine best practices for similar land use and geographic contexts; and use analysis to understand demand and the current policy context.

The resulting recommendations will identify policy solutions, including guidance about how to apply the C/CAG TDM Policy to the midcoast context; parking management strategies; programs and marketing strategies; supportive transit/micromobility/first-last mile services; and institutional and evaluation strategies. The resulting plan will be approved by both the City of Half Moon Bay and the County of San Mateo.

If awarded, the County will act as the implementing agency for the Midcoastside TDM Plan, but work in close coordination with City staff. As the lead for both jurisdictions, the County will enter into an agreement with the Transportation Authority and be responsible for required reporting and invoicing and oversee the consultant contract, support outreach and stakeholder engagement, review and comment on final work products, and support plan approval by the City.

Strategic Priority: The City Council has identified congestion relief and transportation demand management as a priority for FY 2022-23. This grant would further this priority by directly evaluating and planning for implementation of C/CAG TDM policies.

ACR/TDM PROGRAM: PEDAL FOR A PURPOSE E-BICYCLE PILOT PROGRAM Staff submitted a funding request for $200,000 from SMCTA with a 10% match ($20,000) to establish “Pedal for a Purpose,” an E-bicycle pilot program for low-income teachers, agricultural and hospitality workers who live and work on the coast. The goal of this program is to pilot a subsidy program aimed at reducing automotive vehicle miles traveled, decreasing drive-alone trips, and increasing worker mobility.
81 If awarded, City staff will develop eligibility criteria and work with local community-based organizations to identify 25 individuals who live and work within a 12-mile radius of City Hall (501 Main Street) to receive an E-bicycle voucher. That voucher can be redeemed locally for up to $5,000 for an E-bicycle, lock, and helmet. Recipients of the vouchers will also receive on-bike safety courses and maintenance assistance and advice. Additionally, the funding will be used to organize a community bike festival that will be open to all community members with local vendors and activities for all ages.

Strategic Priority: The City Council has identified congestion relief and transportation demand management as a priority for FY 2022-23. Additionally, the City Council retained environmental sustainability as a priority. This grant would further each of these priorities by providing electric assisted bicycles for use by local residents thus reducing roadway congestion and greenhouse gas emissions.

ACTIVE TRANSPORTATION PROGRAM (ATP)
The Active Transportation Program grant is sponsored by the State’s Metropolitan Transportation Commission to encourage active modes of transportation such as walking and biking. The Program plans to distribute over $400 million state-wide to qualifying applicants.

Funds for the current ATP “Cycle 6” are available for use in fiscal years 2023-27. The City plans to submit two Cycle 6 applications on June 15, 2022. One in the Small Infrastructure category for the construction of the Eastside Parallel Trail–North: Segment 2 (Spindrift Avenue to Ruisseau Francais) and another in the Plan category for an Active Transportation Plan for the Eastside Parallel Trail–South: Segment 1 (Higgins Canyon to Miramontes Point).

ATP INFRASTRUCTURE GRANT: THE EAST-SIDE PARALLEL TRAIL – NORTH: SEGMENT 2 (SPINDRIFT TO RUISSEAU FRANCAIS)
Staff is preparing an application to request $3,000,000 in funding for Project Approval and Environmental Documents (PA&ED), Plans, Specifications and Cost Estimate (PS&E), Right-ofWay Utility Relocations (ROW), and Construction (CON). City leveraging/matching funds will total about $350,000, which would be programmed into the City’s Capital Improvement Fund in FY 2025-26.

This project includes 2,100 feet of 10-foot-wide Class 1 Multi-Use trail and a 175-foot-span pedestrian bridge in Caltrans ROW on the east side of Highway 1 between Spindrift Way and Ruisseau Francais Avenue. The project also includes intersection improvements at Highway 1 and Ruisseau Francais Avenue. The Project will “close the gap” in an existing and programmed

2.8-mile-long Class I Multi-Use Trail spanning along the east side of Highway 1 from El Granada Elementary School in unincorporated San Mateo County to North Main Street in the City of Half Moon Bay.

Strategic Priority: The City Council has identified congestion relief and transportation demand management as a priority for FY 2022-23. This grant would further this priority by providing a 82 critical missing link in the 2.8 mile Eastside Parallel Trail-North providing pedestrian and bicycle access from Granada Elementary to North Main Street in Half Moon Bay.

ATP PLANNING GRANT: EASTSIDE PARALLEL TRAIL – SOUTH (HIGGINS CANYON TO

MIRAMONTES POINT) STUDY
Staff is preparing an application to request funding for the preparation of an Active Transportation Plan to evaluate and plan for the development of a 1.3 mile Class 1 Multi-Use Trail along the eastside of Highway 1 extending from the City’s Main Street at Higgins Canyon Road to the City’s southerly limit. As recommended by the City’s Bicycle and Pedestrian Master Plan, this portion of the proposed eastside parallel trail would provide safer pedestrian and bicycle access for residents of Moonridge, Cañada Cove and Ocean Colony as well as to those seeking access to the beaches and California Coastal Trail to the south. The plan includes an additional 0.8 mile Class III Bike Path extending easterly from Highway 1 to the Moonridge Community on Miramontes Point Road in unincorporated San Mateo County.

Strategic Priority: The City Council has identified congestion relief and transportation demand management as a priority for FY 2022-23. This grant would further this priority by funding the necessary planning for a bicycle and pedestrian path that would connect residents, including seniors and families living in low-income agricultural housing, to downtown Half Moon Bay.

One Bay Area Governments (OBAG) 3
OBAG is funded through the Metropolitan Transportation Commission (MTC) that distributes federal transportation funding from the Federal Highway Administration to projects and programs around the Bay Area. One of the OBAG Program Categories and eligible project types supports improvements towards all mobility options and community choice. Potential projects include bicycle/pedestrian infrastructure, safe routes to school infrastructure, and “Complete Street” elements and improvements. Applications for this funding opportunity are due July 1, 2022.

KELLY AVENUE COMPLETE STREETS PROJECT
City Staff has had numerous internal discussions regarding potential projects and ultimately focused on the Kelly Avenue Complete Streets Project. Kelly Avenue is considered a minor arterial according to the California Road System Database and is designated as a primary coastal access route (similarly to Poplar Street) in the City’s Certified Local Coastal Plan (LCP).

Considering Kelly is one of two streets identified as a link from the Town Center to the Coast, along with the high number of residents and visitors using the corridor every day, Kelly Avenue should be a focus of improved safety and accessibility. The Kelly Avenue Corridor is also a main access route for local schools and hundreds of housing units. Providing new sidewalk and bicycle infrastructure, while enhancing existing infrastructure will provide safer access for students, teachers, parents, and thousands of residents. The project will provide greater connectivity to Poplar Beach, Half Moon Bay State Beach, and the California Coastal Trail consistent with State and local Coastal Act policies.
83 Staff is preparing an application requesting $5.0 million in OBAG 3 funds for the Kelly Avenue Complete Streets Project. $500,000 would be allocated to planning, design, outreach, environmental documents, entitlements, etc. The remaining $4.5 million would be utilized for construction of the project. Total costs of a project is currently “ballpark estimated” at approximately $7.5 million.

The potential Kelly Avenue Complete Streets project would allow for safer and more accessible access for pedestrians, bicyclists, vehicular traffic, and all other modes of transportation. The project limits would be along Kelly Avenue from Main Street to the Francis State Beach entrance (California Coastal Trail), totaling approximately 4,500 feet of pedestrian, bicyclist, and street improvements. Potential improvements may include the installation of ADA compliant sidewalks, a bike lane (Class II or III dependent on the section of Kelly Avenue), storm drain and stormwater improvements, intersection improvements, and traffic safety measures.

Throughout the planning and design stages of the project, City Staff intends to conduct multiple outreach measures to hear residents’ concerns and/or potential ideas for the project corridor.

Strategic Priority: The City Council has identified congestion relief and transportation demand management as a priority for FY 2022-23. This grant would further this priority by providing enhanced and safer opportunities for pedestrians and bicyclist to reach schools, shopping, and recreational facilities.

GRANT MANAGEMENT
City Staff has invested a significant amount of time, to date, attempting to secure grant funds from the various programs outlined above, as well as other opportunities throughout the year.

As part of project development, staff evaluates possible phasing and other funding options.

Grant management requires constant oversight and often has specific steps that must be taken before the funds can be physically programmed. Federal grant funding programs are often the most time consuming, followed by State, Regional, Local and Private programs. Adoption of these resolutions is one of the many steps that must be completed for staff to secure project funding and move these projects forward. Upon notice of award, staff will initiate additional assessment of grant management and finance assistance necessary to deliver the project compliant with grantor requirements.

ATTACHMENT:

1. Resolution of Local Support for ACR/TDM Grant for the Midcoastside Traffic Demand Management Plan

2. Resolution of Local Support for ACR/TDM Grant for “Pedal for a Purpose” E-Bicycle Pilot Program

3. Resolution of Local Support for ATP Grant for Eastside Parallel Trail North – Segment 2

4. Resolution of Local Support for ATP Grant for Eastside Parallel South Study

5. Resolution of Local Support for OBAG 3 Grant for Kelly Avenue Complete Streets Project 84 RESOLUTION NO. C-2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

SUPPORTING THE MIDCOASTSIDE TRANSPORTATION DEMAND MANAGEMENT PLAN AND

SUBMITTING AN APPLICATION TO THE SAN MATEO COUNTY TRANSPORTATION AUTHORITY

FOR MEASURE A ALTERNATIVE CONGESTION RELIEF AND MEASURE W TRANSPORTATION

DEMAND MANAGEMENT PROGRAM FUNDING
WHEREAS, the City of Half Moon Bay Local Coastal Program (LCP) Policy 5-54 supports the promotion of alternative modes of transportation to enhance access to Half Moon Bay’s destinations while reducing vehicle trips, greenhouse gas emissions and parking impacts, and supports efforts to manage travel demand during periods of congestion by providing subsidy of transit; and
WHEREAS, the City of Half Moon Bay Local Coastal Program (LCP) Policy 5-57 supports the exploration of Traffic Demand Management (TDM) programs that reduce the reliance of Half Moon Bay residence on the use of private automobile; and WHEREAS, at a priority setting workshop held on March 22, 2022 the City Council identified Transportation, Circulation, and Mobility as one of their five priorities FY22-23; and WHEREAS, the City (Sponsor) has identified the need to develop and implement TDM strategies for Half Moon Bay in collaboration with partners such as the County of San Mateo Department of Planning and Building to address challenges and maximize success; and WHEREAS, the Sponsor seeks to develop the Midcoastside TDM Plan (Project) in collaboration with the County of San Mateo Department of Planning and Building to recommend TDM strategies tailored to the Midcoast; and
WHEREAS, the County of San Mateo will be the lead implementing agency for the development of the Project; and
WHEREAS, the total Project scope will be $220,000 in partnership with the County of San Mateo; and
WHEREAS, it will cost $110,000 to implement the Sponsor’s portion of the Project scope; and
WHEREAS, the Sponsor seeks $100,000 for the Project; and WHEREAS, the San Mateo County Transportation Authority (TA) issued a Call for Projects for the Measure A Alternative Congestion Relief and Measure W Transportation Demand Management (ACR/TDM) Program on April 7, 2022; and
85 WHEREAS, the TA requires a resolution from the City Council committing to the following:

1. Supporting the Project and application for $100,000 in TA ACR/TDM Program funds for the Project; and

2. Committing the City to the completion of the Project including the commitment of matching funds in the amount of $10,000 needed for implementation; and

3. Certifying that any funds awarded by the San Mateo County Transportation Authority will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and

4. Authorizing the City Manager, or designee, to sign a funding agreement with the TA and/or the County of San Mateo, if funds are awarded, for TA ACR/TDM Program funding for the Project and to take any other actions necessary to give effect to this resolution; and

5. Committing to commence work on the Project, if awarded, within one year of the TA Board of Directors allocating 2022 ACR/TDM Program funding.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay authorizes staff to submit an application for the TA ACR/TDM Program funds for $100,000 for the Midcoastside Transportation Demand Management Plan subject to the following:

1. Authorizes the City Manager, or designee, to execute a funding agreement with the TA and/or San Mateo County to encumber any ACR/TDM Program funds awarded.

2. Commits to the completion of the Project, including the commitment of $10,000 of matching funds needed for implementation, if awarded the TA funds.

3. Certifies that any funds awarded by the TA will be used to supplement existing funds for the project and will not replace existing funds or resources.

4. Commits to commencing work on the Project, if awarded, within one year of the TA Board of Directors allocating the 2022 ACR/TDM Program funds.

5. Authorizes the City Manager to take any other actions necessary to give effect to this resolution.
***************************************************************** 86 I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June 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
87 RESOLUTION NO. C-2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

SUPPORTING THE PEDAL FOR A PURPOSE E-BICYLE PILOT PROGRAM AND SUBMITTING AN

APPLICATION TO THE SAN MATEO COUNTY TRANSPORTATION AUTHORITY FOR MEASURE A

ALTERNATIVE CONGESTION RELIEF AND MEASURE W TRANSPORTATION DEMAND

MANAGEMENT PROGRAM FUNDING
WHEREAS, the City of Half Moon Bay Local Coastal Program (LCP) Policy 5-57 supports the exploration of TDM programs that reduce the reliance of Half Moon Bay residence on the use of private automobile; and
WHEREAS, on September 17, 2019 the City Council adopted the Bicycle and Pedestrian Master Plan (BPMP) which identifies needs and prioritizes improvements to the City’s bicycle and pedestrian facilities and programs; and
WHEREAS, the BPMP identifies program recommendations to improve the overall bicycle and pedestrian environment in Half Moon Bay including encouragement and equity programs to encourage active transportation; and
WHEREAS, at a priority setting workshop held on March 22, 2022 the City Council identified Transportation, Circulation, and Mobility as one of their five priorities FY22-23; and WHEREAS, the City of Half Moon Bay Staff has identified a need for low-income teachers, agricultural and hospitality workers to have access to multimodal types of transportation for commute and non-commute trips; and
WHEREAS, the San Mateo County Transportation Authority (TA) issued a Call for Projects for the Measure A Alternative Congestion Relief & Measure W Transportation Demand Management (ACR/TDM) Program on April 7, 2022; and
WHEREAS, the City has developed the Pedal for A Purpose Pilot Program to distribute twenty five e-bicycle vouchers to applicants who reside and work within a twelve mile radius of the City of Half Moon Bay; and
WHEREAS, the TA requires a resolution from the Sponsor's governing body acknowledging that the City Council is:

1. Supporting the Project and application for $200,000 in TA ACR/TDM Program funds for Project; and

2. Committing the City to the completion of the Project, including the commitment of matching funds in the amount of $20,000 needed for implementation; and

3. Certifying that any funds awarded by the San Mateo County Transportation Authority will be used to supplement existing funds for program activities, and will not replace existing funds or resources; and
88 4. Authorizing the City Manager, or his/her designee, to sign a funding agreement with the TA, if funds are awarded, for TA ACR/TDM Program funding for the Project and to take any other actions necessary to give effect to this resolution; and

5. Committing to commence work on the Project, if awarded, within two years of the TA Board of Directors allocating 2022 ACR/TDM Program funding.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Half Moon Bay, that staff is authorized to submit an application for TA ACR/TDM Program funds for $200,000 for the proposed Pedal for A Purpose Pilot Program subject to the following:

1. Authorizes the City Manager, or his/her designee, to execute a funding agreement with the TA to encumber any ACR/TDM Program funds awarded.

2. Commits to the completion of the Project, including the commitment of $20,000 of matching funds needed for implementation, if awarded the requested TA funds.

3. Certifies that any funds awarded by the TA will be used to supplement existing funds for the Project, and will not replace existing funds or resources.

4. Commits to commencing work on the Project, if awarded, within two years of the TA Board of Directors allocating the 2022 ACR/TDM Program funds.

5. Authorizes the City Manager to take any other actions necessary to give effect to this resolution.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June, 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
89 RESOLUTION NO. C-2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

SUPPORTING AN APPLICATION TO THE CALIFORNIA TRANSPORTATION COMMISSION FOR “ACTIVE TRANSPORTATION PROGRAM CYCLE 6” PROGRAM FUNDING, AND, AUTHORIZING

THE CITY MANAGER TO COMMIT RESOURCES AND FUNDS SHOULD THE APPLICATION BE

APPROVED
WHEREAS, on September 17, 2019 the City Council adopted the Bicycle and Pedestrian Master Plan (BPMP) which identifies needs and prioritizes improvements to the City’s bicycle and pedestrian facilities and programs; and
WHEREAS, the BPMP recommends a Multi-Use Class 1 bicycle and pedestrian trail on each side of Highway 1 to improve safety and north-south connections for bicyclists and pedestrians; and
WHEREAS, the Highway 1 “Parallel Trail” recommendations in the City’s BPMP are consistent with the goals of the CTC’s Active Transportation Program; and WHEREAS, the California Transportation Commission (CTC) issued a Call for Projects for the Active Transportation Program (ATP), Cycle 6, on March 16, 2022; and WHEREAS, City Staff have prepared an ATP Infrastructure Grant application for funding the Eastside Parallel Trail North Segment 2: Spindrift to Ruisseau Francais; and WHEREAS, Submittal of the application requires a signatory authorized by the governing body to commit the City’s resources and funds; and
WHEREAS, should the ATP applications be approved, the ATP grant may require matching funds in the amount of 11.47% of the project’s total cost; and WHEREAS, there are sufficient funds in the City’s Capital Improvement fund to support the projects and the project matching funds.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Half Moon Bay, that the Council supports the filing of this application for Active Transportation Program funding and authorizes the City Manager to commit City resources and funds should the application be approved. 90 ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June, 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
91 RESOLUTION NO. C-2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

SUPPORTING AN APPLICATION TO THE CALIFORNIA TRANSPORTATION COMMISSION FOR “ACTIVE TRANSPORTATION PROGRAM CYCLE 6” PROGRAM FUNDING, AND, AUTHORIZING

THE CITY MANAGER TO COMMIT RESOURCES AND FUNDS SHOULD THE APPLICATION BE

APPROVED
WHEREAS, on September 17, 2019 the City Council adopted the Bicycle and Pedestrian Master Plan (BPMP) which identifies needs and prioritizes improvements to the City’s bicycle and pedestrian facilities and programs; and
WHEREAS, the BPMP recommends a Multi-Use Class 1 bicycle and pedestrian trail on each side of Highway 1 to improve safety and north-south connections for bicyclists and pedestrians; and
WHEREAS, the Highway 1 “Parallel Trail” recommendations in the City’s BPMP are consistent with the goals of the CTC’s Active Transportation Program; and WHEREAS, the California Transportation Commission (CTC) issued a Call for Projects for the Active Transportation Program (ATP), Cycle 6, on March 16, 2022; and WHEREAS, City Staff have prepared an ATP Planning Grant application for funding the Eastside Parallel Trail South Segment 1: Higgins Canyon to Miramontes Point; and WHEREAS, Submittal of the application requires a signatory authorized by the governing body to commit the City’s resources and funds; and
WHEREAS,should the ATP applications be approved, the ATP grant may require matching funds in the amount of 11.47% of the project’s total cost; and WHEREAS, there are sufficient funds in the City’s Capital Improvement fund to support the projects and the project matching funds.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Half Moon Bay, that the Council supports the filing of this application for Active Transportation Program funding and authorizes the City Manager to commit City resources and funds should the application be approved.
***************************************************************** 92 I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June, 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
93 RESOLUTION NO. C-2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING STAFF

TO FILE AN APPLICATION FOR FUNDING ASSIGNED TO METROPOLITAN TRANSPORATION

COMMISSION, COMMITTING ANY NECESSARY MATCHING FUNDS, AND STATING ASSURANCE

TO COMPLETE THE KELLY AVENUE COMPLETE STREETS PROJECT
WHEREAS, the City of Half Moon Bay (herein referred to as City) is submitting an application to the Metropolitan Transportation Commission (MTC) for $5,000,000 in funding assigned to MTC for programming discretion, which includes federal funding administered by the Federal Highway Administration (FHWA) and federal or state funding administered by the California Transportation Commission (CTC) such as Surface Transportation Block Grant Program (STP) funding, Congestion Mitigation and Air Quality Improvement Program (CMAQ) funding, Transportation Alternatives (TA) set-aside/Active Transportation Program (ATP) funding, and Regional Transportation Improvement Program (RTIP) funding (herein collectively referred to as REGIONAL DISCRETIONARY FUNDING) for the Kelly Avenue Complete Streets Project (herein referred to as PROJECT) for the One Bay Area Grant Program – Cycle 3 (OBAG 3) (herein referred to as PROGRAM); and
WHEREAS, the United States Congress from time to time enacts and amends legislation to provide funding for various transportation needs and programs, (collectively, the FEDERAL TRANSPORTATION ACT) including, but not limited to the Surface Transportation Block Grant Program (STP) (23 U.S.C. § 133), the Congestion Mitigation and Air Quality Improvement Program (CMAQ) (23 U.S.C. § 149) and the Transportation Alternatives (TA) set-aside (23 U.S.C. § 133); and
WHEREAS, state statutes, including California Streets and Highways Code §182.6, §182.7, and §2381(a)(1), and California Government Code §14527, provide various funding programs for the programming discretion of the Metropolitan Planning Organization (MPO) and the Regional Transportation Planning Agency (RTPA); and
WHEREAS, pursuant to the FEDERAL TRANSPORTATION ACT, and any regulations promulgated thereunder, eligible project sponsors wishing to receive federal or state funds for a regionally-significant project shall submit an application first with the appropriate MPO, or RTPA, as applicable, for review and inclusion in the federal Transportation Improvement Program (TIP); and
WHEREAS, MTC is the MPO and RTPA for the nine counties of the San Francisco Bay region; and
WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) that sets out procedures governing the application and use of REGIONAL DISCRETIONARY FUNDING; and
WHEREAS, the City of Half Moon Bay is an eligible sponsor for REGIONAL DISCRETIONARY FUNDING; and
94 WHEREAS, as part of the application for REGIONAL DISCRETIONARY FUNDING, MTC requires a resolution adopted by the responsible implementing agency stating the following:
• the commitment of any required matching funds; and
• that the sponsor understands that the REGIONAL DISCRETIONARY FUNDING is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional REGIONAL DISCRETIONARY FUNDING; and • that the PROJECT will comply with the procedures, delivery milestones and funding deadlines specified in the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised); and
• the assurance of the sponsor to complete the PROJECT as described in the application, subject to environmental clearance, and if approved, as included in MTC's federal Transportation Improvement Program (TIP); and
• that the PROJECT will have adequate staffing resources to deliver and complete the PROJECT within the schedule submitted with the project application; and • that the PROJECT will comply with all project-specific requirements as set forth in the PROGRAM; and
• that APPLICANT has assigned, and will maintain a single point of contact for all FHWAand CTC-funded transportation projects to coordinate within the agency and with the respective Congestion Management Agency (CMA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit projects implemented by APPLICANT; and
• in the case of a transit project, the PROJECT will comply with MTC Resolution No. 3866, revised, which sets forth the requirements of MTC’s Transit Coordination Implementation Plan to more efficiently deliver transit projects in the region; and • in the case of a highway project, the PROJECT will comply with MTC Resolution No. 4104, which sets forth MTC’s Traffic Operations System (TOS) Policy to install and activate TOS elements on new major freeway projects; and • in the case of an RTIP project, state law requires PROJECT be included in a local congestion management plan, or be consistent with the capital improvement program adopted pursuant to MTC’s funding agreement with the countywide transportation agency; and
WHEREAS, that City of Half Moon Bay is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING for the PROJECT; and
WHEREAS, there is no legal impediment to City making applications for the funds; and WHEREAS, there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of City to deliver such PROJECT; and WHEREAS, the City of Half Moon Bay City Council authorizes the City Manager or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECT as referenced in this resolution; and
95 WHEREAS, MTC requires that a copy of this resolution be transmitted to the MTC in conjunction with the filing of the application.

NOW, THEREFORE, BE IT RESOLVED that the City Council authorizes the City Manager to execute and file an application for funding for the PROJECT for REGIONAL DISCRETIONARY FUNDING under the FEDERAL TRANSPORTATION ACT or continued funding; and be it further RESOLVED that the City will provide any required matching funds; and be it further RESOLVED that the City understands that the REGIONAL DISCRETIONARY FUNDING for the project is fixed at the MTC approved programmed amount, and that any cost increases must be funded by the APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional REGIONAL DISCRETIONARY FUNDING; and be it further RESOLVED that the City understands the funding deadlines associated with these funds and will comply with the provisions and requirements of the Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) and City has, and will retain the expertise, knowledge and resources necessary to deliver federally-funded transportation and transit projects, and has assigned, and will maintain a single point of contact for all FHWA- and CTC-funded transportation projects to coordinate within the agency and with the respective Congestion Management Agency (CMA), MTC, Caltrans, FHWA, and CTC on all communications, inquires or issues that may arise during the federal programming and delivery process for all FHWA- and CTC-funded transportation and transit projects implemented by City; and be it further RESOLVED that PROJECT will be implemented as described in the complete application and in this resolution, subject to environmental clearance, and, if approved, for the amount approved by MTC and programmed in the federal TIP; and be it further RESOLVED that City has reviewed the PROJECT and has adequate staffing resources to deliver and complete the PROJECT within the schedule submitted with the project application; and be it further
RESOLVED that PROJECT will comply with the requirements as set forth in MTC programming guidelines and project selection procedures for the PROGRAM; and be it further RESOLVED that, in the case of a transit project, City agrees to comply with the requirements of MTC’s Transit Coordination Implementation Plan as set forth in MTC Resolution No. 3866, revised; and be it further
RESOLVED that, in the case of a highway project, City agrees to comply with the requirements of MTC’s Traffic Operations System (TOS) Policy as set forth in MTC Resolution No. 4104; and be it further
RESOLVED that, in the case of an RTIP project, PROJECT is included in a local congestion management plan, or is consistent with the capital improvement program adopted pursuant to 96 MTC’s funding agreement with the countywide transportation agency; and be it further RESOLVED that City is an eligible sponsor of REGIONAL DISCRETIONARY FUNDING funded projects; and be it further
RESOLVED that City is authorized to submit an application for REGIONAL DISCRETIONARY FUNDING for the PROJECT; and be it further
RESOLVED that there is no legal impediment to City making applications for the funds; and be it further
RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and be it further
RESOLVED that the City Council authorizes the City Manager or designee to execute and file an application with MTC for REGIONAL DISCRETIONARY FUNDING for the PROJECT as referenced in this resolution; and be it further
RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and be it further
RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution, and if approved, to include the PROJECT in MTC's federal TIP upon submittal by the project sponsor for TIP programming.
***************************************************************** I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 7th day of June 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
97 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Matthew Chidester, Deputy City Manager
John Doughty, Director of Public Works
TITLE: COASTSIDE LAND TRUST WAVECREST TRAIL LICENSE AGREEMENT ______________________________________________________________________________ RECOMMENDATION:

By motion, authorize the City Manager to provide the draft Wavecrest Trail License Agreement for the Coastside Land Trust (CLT) Wavecrest California Coastal Trail Phase 2 project and sign a letter of commitment for CLT’s application for grant funding from the Proposition 68 Regional Park Program.

FISCAL IMPACT:

There is no fiscal impact associated with this action. The City and CLT will negotiate the final terms and conditions of the license agreement, which will be presented in its final form to the Council for approval at a future meeting.

STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety, Inclusive Governance, and Infrastructure and Environment Elements of the Strategic Plan.

BACKGROUND:

The California Coastal Trail – stretching from Mexico to Oregon – was mandated by Proposition 20 in 1972 to provide a hiking, bicycle, and equestrian trails system along or near the California coast. Much of the San Mateo County mid-coast includes improved portions of the trail, with portions owned and operated by various public agencies. Thousands of residents and visitors enjoy the trail each year, including pedestrians, cyclists and equestrians.

Coastside Land Trust (CLT) has developed plans for a connection of the trail between improved sections south of the Seymour Watercourse and Redondo Beach Road, through several of its undeveloped properties in the Wavecrest subdivision. A Coastal Development Permit (CDP) / Use Permit application has been submitted by CLT to the City. Biological studies are currently being updated prior to scheduling the proposal for Planning Commission review. The CDP application includes plans for the Coastal Trail segment, connector and spur trails, two sets of 98 beach access stairs down to Redondo Beach, and parking/staging areas with bathrooms on Redondo Beach Road (see attached map). In order to complete this work, CLT will need to utilize several sections of unimproved City right of way (paper streets) for construction of the trails. Paper streets were established in this area during the creation of the subdivision and dedicated to the City for future improvement if/or when the subdivision is developed. A nonexclusive license agreement between the City and CLT will be required to authorize the use of the paper streets, and is currently under development and negotiation. The final agreement would not be executed until after approval of the CDP.

Earlier this year, CLT applied for a California State Parks Regional Park Program (Proposition 68) grant for construction of the improvements, which included a letter of support from the City.

State Parks has reviewed the application and asked for additional information, including a draft of the license agreement, for continued consideration. State Parks has provided a list of required terms to be included in the agreement, should the grant be awarded to CLT. The State’s required terms include:
• A 30-year term that cannot be terminated without cause • A non-binding option to renew beyond the 30-year term • Authorization for construction of the grant-funded project to proceed • Details as to when the general public may use the improvements • Authorization for the grantee (CLT) to operate recreation programs on the improvements
• Maintenance responsibilities
The City is supportive of the proposed project and desires to support the grant application, including entering into an agreement under the state’s required terms.

DISCUSSION:

The City and CLT have negotiated the attached draft non-exclusive license agreement, which, if executed, would allow CLT to construct and operate the Coastal Trail connection as well as other trails over portions of the City’s paper streets in the Wavecrest subdivision, including the following:
• All of the State’s required terms and conditions outlined above • Requirements that CLT maintain, manage, and operate all portions of the trails and other improvements constructed on City property and paper streets as defined in Exhibit A
• That in the case of the City being required to construct or allow the construction of improved streets in the right-of-way, that any sections of the trail within the right of way must be removed, and that improved streets and sidewalks may replace those sections but remain open for public use
If approved by the Council, staff will provide the attached draft agreement to CLT for submission to the State, and the City Manager will sign any required documents that CLT must submit committing both parties to finalize and enter into the agreement as a condition of grant 99 award. Staff will continue to work with CLT on the CDP application and on the final version of the license agreement, which will be substantially the same as the attached draft and will be brought back to council for approval.

ATTACHMENT:

1. Wavecrest Coastal Trail Phase 2 map

2. Wavecrest Trail License Agreement - draft
100
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CALE: 1"=150'N
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D R A W I N G T I T L E : D
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DATE:

SHEET OF SHEETS P R O J E C T T I T L E : Coastside Land Trust 21 R E V I S I O N S : L I C E N S E D L A N D S C A P E A R C H I T E C T No. 4219
S T A
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Signature
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07/11/19
95% Submittal
Wavecrest Coastal Trail Phase 2 1625 SHATTUCK
AVENUE, STE 300
BERKELEY, CA 94709
(510) 848.3815 PHONE(510) 848.4315 FAX
LEGEND
NORTH
0 75 150
1" = 150'-0"

EXHIBIT A
PAGE 1/1

0.11 0.08

0.07 0.09

0.18 0.25

0.22 0.05 0.09 0.05

0.22 0.24

0.11 0.13

0.08 0.09

0.06 0.21

0.08 0.11

0.02 Notes:

1. Trail segment lengths shown in miles.

2. This sheet prints at half-scale
(1’=300’-0”) on 11x17.

Trail segment node
101
Wavecrest Trail License Agreement [draft for City consideration] 1 Wavecrest Trail License Agreement
This Wavecrest Trail License Agreement (“License”) is made and entered into on this ______ day of _________________, 2022 by and between the CITY OF HALF MOON BAY, hereinafter called “City” and COASTSIDE LAND TRUST, hereinafter called “Licensee.”

RECITALS
WHEREAS, Licensee desires to build a coastal trail for public access (the “Trail”) over parcels it owns and public rights of way owned by the City, which City public rights of way are described in the legal description attached hereto as Exhibit A and depicted on the plat attached hereto as Exhibit B, both incorporated herein by this reference (identified and referred to herein as the “City Property”).

WHEREAS, Licensee owns properties adjacent to the City Property (the “Licensee Property”), as generally shown on the Trail alignment map attached hereto as Exhibit C. The Trail shall be aligned within the corridor shown on Exhibit C to this letter (the “Trail Corridor”).

WHEREAS, Licensee desires to obtain a license for non-exclusive access over and use of the City Property to create a trail that crosses both City Property and Licensee Property, as generally depicted on Exhibit C, and as further described in this License.

NOW THEREFORE, City and Licensee agree:
1) License Area. City hereby licenses certain areas described in Exhibit A and depicted on Exhibit B (“License Area”) to Licensee.
2) Term. The Term of this License shall commence on the date of final execution by City and shall continue thereafter for 30 years (“Term”).
3) Renewal Option. At least twelve (12) weeks prior to the end of the Term, Licensee may request that the City extend the Term for another ten (10) years. At the discretion of the City and by request of the Licensee, the License may thus be extended indefinitely. 4) Termination. This License is revocable only for cause. The City may revoke the License thirty (30) days after delivery of written notice of a desire to terminate this License, which written notice shall describe the reasons for termination of the License. 5) Use. The License Area shall be used to allow public access over the coastal bluff along the Trail and within the Trail Corridor in a manner that provides visitors an opportunity to walk or ride along the Trail and enjoy a view of the coastline and ocean and connect the Trail with the California Coastal Trail. The specific purpose of the Trail, and the uses that may be made of the License Area, are to permit it to be used by Licensee and the general public for (i) pedestrian and bicycle use; (ii) nature observation, enjoyment, and study; (iii) other compatible low intensity conservation, recreational, scientific and/or educational purposes; (iv) equestrian use to the extent that a path separated from the pedestrian and bicycle trail can be maintained; and (v) vehicular areas for security, emergencies, maintenance and repair, or as required under the Americans with Disabilities Act. The Trail may be used only during 102
Wavecrest Trail License Agreement [draft for City consideration] 2 those hours that the City Property is open to the public. The public may use the Trail only upon completion of the construction of the Trail.
6) Non-Exclusive Use; City Use Restrictions; Relocation of Trail Over License Area. The City Property within the License Area is within a public right of way owned by City, and accordingly, the License is non-exclusive and subordinate to the rights of the public and property owners of parcels served by such right of way created by such public right of way.

The Trail shall be initially located within the License Area in a manner that does not interfere with public access to the privately owned parcels of real property that are benefitted by such public right of way (e.g., along the outer boundary of the License Area to permit vehicular access over the License Area). If and to the extent any part of the City Property within the License Area is improved by the City with public improvements (e.g., streets, sidewalks, landscaping, curbs, gutters, and utility services), the Trail may be aligned so that it utilizes such public improvements to the extent necessary to provide public trail access over such portion of the License Area (e.g., over sidewalks or public streets) to provide continuity of access so that all portions of the Trail may continue to be utilized. 7) Construction, Operation, Maintenance, Repair and Replacement of Trail. Licensee acknowledges that it has inspected the License Area, and Licensee accept the License Area “as is” in the condition existing at commencement hereof. a) Licensee will be responsible for the construction, operation, maintenance, repair and replacement when necessary of the Trail over the License Area and all related improvements.
b) All construction or other work performed by Licensee or caused to be performed by Licensee in, on or about the Trail shall comply in all respects to all applicable statutes, ordinances, building codes, rules and regulations, including but not limited to fire, safety, and construction standards of City or other entities with jurisdiction over the License Area.
c) Licensee shall construct, operate, maintain, repair, and replace the Trail and related improvements in compliance with the Coastal Development Permit for the Trail and related improvements.
d) The Trail shall be no more than X (X) feet in width. e) Licensee shall notify City at least ten (10) days in advance of any construction on the License Area, and City shall be entitled to post on the License Area notices of nonresponsibility in favor of City prior to commencement of any such construction. 8) Liens. Licensee shall keep the License Area free from any liens arising out of any work performed, materials furnished or obligations incurred by Licensee. 9) Waiver of Claims and Indemnification. Licensee shall, indemnify, defend, and hold City and its officers, directors, employees, agents, successors, assigns, council members, and partners (each, an “Indemnified Party”) harmless from and against any and all loss, liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, 103
Wavecrest Trail License Agreement [draft for City consideration] 3 without limitation, reasonable attorneys’ fees and all costs, disbursements and expense of legal counsel) (hereinafter, “Claims”), imposed upon or incurred by or asserted against City or any other Indemnified Party by any third party arising out of or in any way connected with the occurrence or existence of any of the following: (a) any accident, injury or death of person(s) (including recreational trail visitors/users, invitees, contractors, employees, agents, and workers) or losses of or damage to property occurring on or about the License Area; (b) any use, possession, occupation, operation, maintenance, management, or condition of the License Area, the Trail, or the Licensee Property; or (c) any mechanic’s or other liens arising from Licensee’s work. Notwithstanding the foregoing, this indemnification does not apply to the extent any Claims arise from the negligence or willful misconduct of City. The duty of Licensee to indemnify and hold harmless includes the duty to defend as set forth in Civil Code Section 2778 with counsel reasonably acceptable to City. 10) Public Visitor Recreational Immunity. Any permission given by Licensee or City for entry by public recreational visitors on or over the License Area is given only for recreational purposes as defined in California Civil Code Section 846, and Licensee and City give no assurances to public recreational visitors that such premises are safe for such purposes, nor confer upon the person to whom permission has been granted the legal status of an invitee or licensee to whom a duty of care is owed, nor assume responsibility for or incur any liability for any injury to person or property caused by any act of such person to whom permission has been granted except as otherwise provided in said Section 846. It is the intent of this paragraph to preserve for Licensee and City any and all recreational use immunities and any other immunities provided for under Section 846 of the California Civil Code and in Section 5075.4 of the California Public Resources Code and under any other applicable laws or statutes, now or hereafter in effect, eliminating or limiting to the fullest extent permitted by law Licensee’s and City’s liability for, or providing immunity from, claims against Licensee or City by third parties. It is also the intent of this paragraph to preserve for City any and all recreational use immunities and any other immunities provided under California Government Code Sections 831.4 and 831.7 and under any other applicable laws or statutes, now or hereafter in effect, eliminating or limiting City’s liability for, or providing immunity from, claims against City by third parties. This paragraph is not intended to, nor shall it be construed to, limit, affect or restrict any rights of either party or its officers, directors, agents or employees to assert any claims against the other party to which it may otherwise be entitled to under this License.
11) Insurance. Licensee shall maintain, or cause to be maintained, throughout the term hereof, including any extensions, a policy of commercial general liability insurance against claims for bodily injury, personal injury, death and/or property damage occurring upon, in or about the License Area with limits which shall not be less than Two Million Dollars ($2,000,000.00) per occurrence. City shall be named as an additional insured on such policy.

Prior to the commencement of any work contemplated under this License (and from time to time upon City’s request), Licensee shall promptly furnish to City an endorsement evidencing such insurance coverage.
12) Default.
104
Wavecrest Trail License Agreement [draft for City consideration] 4 (a) Consultation. In the event any party believes any other party to this License has failed to comply with its terms, or wishes to propose an amendment to this License to address any term or condition herein, or to discuss any operational issues concerning the License, the parties agree to meet and confer within thirty (30) days of receipt of a written request for consultation.
(b) Mediation. City and Licensee agree that mediation offers an alternative to the expense and time required to resolve disputes by litigation. Mediation is therefore the parties’ preferred dispute resolution procedure when circumstances do not require City or Licensee to seek immediate injunctive relief from the courts. If the consultation process set out in Section 12(a), above, fails to resolve any dispute arising out of or relating to this License or the performance or breach thereof, any party may refer the dispute to non-binding mediation by written request sent to the other parties. The non-requesting parties shall have ten (10) days after receipt of a mediation request to consent or refuse to mediate the dispute. If the nonrequesting parties do not respond within ten (10) days, it shall be assumed the request for mediation has been refused.
(c) Litigation. No party may resort to litigation prior to the consultation required in Section 12(a), above, and the conclusion of any agreed upon mediation. Notwithstanding the foregoing, if a party, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate damage to the License Area or any alterations installed within the License Area, such party may file litigation prior to consultation, or any agreed upon mediation.
13) Entry by City. City shall, at any and all times have the right to enter onto the License Area to inspect the same, to post notices of non-responsibility, and to alter, improve or repair the License Area. Licensee hereby waives any claim for damages for any loss of occupancy or quiet enjoyment of the License Area occasioned thereby. 14) Waiver. The waiver by City of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or any subsequent breach of the same or any other term, covenant, or condition hereof. 15) Notices. All notices, statements, demands, requests, approvals, or consents (collectively “notices”) given hereunder by either party to the other shall be made in writing and shall be served personally or by first class mail, certified or return receipt requested, postage prepaid, and addressed to the parties as follows:

City: Bob Nisbet, City Manager
City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
(email)
Licensee: (Name, Title)
Coastside Land Trust
105
Wavecrest Trail License Agreement [draft for City consideration] 5 788 Main Street
Half Moon Bay, CA 94019
(email)
or to such other address as either party may have furnished to the other as a place for the service of notice. Any notice so served by mail shall be deemed to have been delivered three (3) days after the date posted.
16) General.
a) This License contains all of the terms, covenants, and conditions agreed to by City and Licensee, and this License may not be modified orally or in any manner other than by an agreement in writing signed by all of the parties to this License or their respective successors in interest.
b) When the context of this License requires, the masculine gender includes the feminine, a corporation, or a partnership, and the singular number includes the plural. c) The captions of this License are for convenience only and are not a part of this License and do not in any way limit or amplify the terms and provisions of this License. d) This License shall be governed and construed in accordance with the laws of the State of California with venue in the County of San Mateo.
e) If any provision of this License, or the application to any person or circumstance, is found to be invalid, the remainder of the provisions of this License, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected so long as the purposes of this License can still be carried out.
f) This instrument is made and entered into for the sole benefit and protection of City and Licensee and their respective successors and assigns. No person or entity other than the Parties and their respective successors and assigns shall have any right of action under this License or any right to enforce the terms and provisions. g) The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation.
h) The parties may execute this instrument in two or more counterparts; each counterpart shall be deemed an original instrument. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. i) All Exhibits referred to in this License are attached and incorporated by this reference.

All recitals in this License are accurate and shall constitute an integral part of this License, and this License shall be construed in light of those recitals. j) Each person executing this License on behalf of a Party represents that such person has the requisite authority to bind the Party on whose behalf he or she is signing this License and that all requisite approvals of such Party have been obtained. k) Time is of the essence as to all of the provisions of this License as to which time of performance is a factor.
106
Wavecrest Trail License Agreement [draft for City consideration] 6 IN WITNESS WHEREOF, the parties hereto have caused this License to be executed by their duly authorized officers to be effective as of the date of final execution by City in accordance with the terms hereof.

CITY OF HALF MOON BAY LICENSEE:

COASTSIDE LAND TRUST
Robert Nisbet, City Manager
Date
[Name], [Title]
Date
Exhibit A – Legal Description of City Property
Exhibit B – Plat of City Property
Exhibit C – Trail Alignment Map
1513691.6
107

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Matthew Chidester, Deputy City Manager
TITLE: DONOR RECOGNITION AND NAMING POLICY FOR THE JOHN L. CARTER

MEMORIAL PARK RENOVATION PROJECT
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution approving the Donor Recognition and Naming Policy for the John L. Carter Memorial Park Renovation Project.

FISCAL IMPACT:

There is no fiscal impact associated with this action. Adoption of this Policy will permit the City to accept donations to help offset City costs related to park renovation and construction.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment, Fiscal Sustainability, and Inclusive Governance Elements of the Strategic Plan.

BACKGROUND:

The Parks Master Plan adopted by the City Council on February 5, 2019, identified John L.

Carter Memorial Park (Carter Park) as an opportunity to increase community recreation at an underutilized City Park. The Park Master Plan specifically identified Carter Park’s potential to become a “well utilized cultural events park with performances and summer day camps.” While preparing the City’s FY 2018-19 budget, the Parks and Recreation Commission and residents expressed desire to consider Carter Park improvements as a priority. City Council accepted this recommendation and designated the Carter Park Capital Improvement Plan (CIP) project to be a priority.

The John L. Carter Park Improvements Project includes a new amphitheater including terraced seating, a new stage with storage space and changing room, a children’s play area, picnic area, restroom and concession stand building, park access improvements, a walking trail, landscaping, lighting, and utility improvements. Estimated costs for the project are over $6.3 million. With support from Assemblymember Berman, the City was successful in obtaining funding through the California State Budget in the amount of $4.75 million to assist the City in 108
constructing the improvements, with the remaining coming from local sources, including the City’s General Fund.

Typically, cities develop a recognition and naming policy in advance of commencing construction of a new public facility like Carter Park. A recognition and naming policy helps to raise funds in support of new or renovated community spaces. With construction of the new facility beginning immediately, it is important to adopt a policy to encourage donations to support the improvements and minimize city funding, which could be used towards other worthy programs and projects. Additionally, certain improvements to the facility, including the playground and audio-visual systems, are not included in the current project and will require additional funding to be constructed.

The City, with leadership and support from the Friends of the Library non-profit, raised more than $1 million in capital donations towards the construction of the new Library in 2018, utilizing a similar policy. Collaboration with the Friends of HMB Parks and Rec, the chamber, and local performing arts groups, along with a naming and recognition policy, will be key to achieving similar results.

DISCUSSION:

The Donor Recognition and Naming Policy gives the City Council discretion over the acceptance of donations, naming of park features, and other forms of recognition. The policy allows the Council to decline any donation or request for naming it believes is not in the best interest of the City. It also allows the City to remove recognition at any time if the named donor “engages in activities that are in conflict with the City’s mission and values, or is involved in disreputable or criminal activities that would bring dishonor and embarrassment to the City of Half Moon Bay.”
Recognition of any donation of $500 or more will appear at the facility, and all donations will be recognized through various other media. Naming may be allowed for facilities (i.e. amphitheater, stage), equipment and fixtures (i.e. the audio visual and lighting, tables), or special use areas (i.e. playground, bbq area, rooftop garden) through large donations, and will be recognized with a permanent plaque honoring the donor or honoree. Naming recognition may also be granted by the Council for persons, foundations or corporations that have had a positive impact through exceptional achievement in service to the library or City. Generally, naming recognition shall be for a period of no more than 20 years, but the plaque will remain for the life of the improvement. All donations will be recognized in writing and naming recognition will be memorialized through a Memorandum of Agreement between the City and the donor.

The recommended donation amounts for both naming and recognition are listed in the draft policy which is included in the resolution as Exhibit A. 109
ATTACHMENT:

Resolution approving the Donor Recognition and Naming Policy for the John L. Carter Memorial Park Renovation Project
110
RESOLUTION NO. C-2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING THE DONOR RECOGNITION AND NAMING POLICY FOR THE JOHN L. CARTER MEMORIAL PARK

RENOVATION PROJECT
WHEREAS, the City of Half Moon Bay is currently renovating John L. Carter Memorial Park in Half Moon Bay, including a new amphitheater, stage, restrooms and other features, which are planned for completion in in FY 2022-23; and
WHEREAS, the Parks and Recreation Commission has established a subcommittee to coordinate with local partners to raise funds to help cover the costs of constructing the renovations; and
WHEREAS, a Donor Recognition and Naming Policy helps to encourage support for the project and ensure donors that they will receive appropriate recognition for their donations; and
WHEREAS, the City has developed the Donor Recognition and Naming Policy which defines when and how the City may recognize financial contributions or exceptional services and achievements at the park and identifies the facilities, equipment and special use areas within the park that may be named in accordance with the draft policy.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay approves the Donor Recognition and Naming Policy for the John L. Carter Memorial Park Renovation Project included as Exhibit A to this resolution. ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 7th day of June, 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
111

DONOR RECOGNITION AND NAMING POLICY
JOHN L. CARTER MEMORIAL PARK
At the sole discretion of the Half Moon Bay City Council, donors to the Carter Park renovation project may be recognized for their financial contributions or exceptional services and achievements that benefit the community.

Naming and Name Recognition
The naming or name recognition of City facilities, equipment, and special use areas set forth in this policy ensures recognition is consistent with the mission of the City of Half Moon Bay and its reputation as a public entity. The City Council shall evaluate proposals for naming and name recognition for those individuals, families, corporations, foundations or other organizations that have had a positive impact through philanthropic contributions or through exceptional achievement in service to the park and/or Half Moon Bay Coastside community.

The City Council hasthe sole right to name or rename facilities, rooms, and special use areas. The City Council will review, consider and approve or decline all such proposals, and may refuse any financial or in-kind donation if it is deemed not to be in the best interest of the park or City.

Naming rights carry no power of direction or implied power of direction to the City on matters of appointment of persons, policies, or any other processes or activities.

Naming rights or name recognition will normally not extend beyond the useful life of the facility or area. Absent an explicit agreement to the contrary, naming rights will remain in place for a period of no longer than twenty (20) years. Any subsequent naming rights or recognition shall be in addition to the original recognition, which shall remain in place through the life of the facility, except as set forth elsewhere in this policy.

If, in the judgment of the City Council, a person or entity for whom space has been named engages in activities that are in conflict with the City’s mission and values, or is involved in disreputable or criminal activities that would bring dishonor and embarrassment to the City of Half Moon Bay, the naming or name recognition of a facility, piece of equipment, or special use area, the City Council shall have the discretion to cease the use of the name and remove any formal recognition.

Definitions
• Financial Contributions: For the purposes of this policy, this includes all cash, securities, and “gifts-in-kind” contributions for the benefit of the Park. Contributions of securities will be liquidated upon receipt and the donor will be acknowledged for the cash value at the time the securities are sold. Philanthropic gifts may be made directly to the City or through a recognized partner (Friends of HMB Parks and Recreation, HMB Coastside 112
Chamber of Commerce, HMB Shakespeare Company, or other previously approved parks or performing arts based non-profit organization).
• Equipment and Special Use Areas: Equipment is a defined piece of special equipment, such as a swing set, climbing structure, or any other fixture that has a specific use within the park. A Special Use Area is a defined area in the park property that has a distinct and identifiable purpose.
• Naming: Refers to titling a facility, piece of equipment, or special use area. The naming shall be considered either by philanthropy or as honorific. The name of the individual, foundation or corporate entity shall preface the title of the space or equipment and shall be used in signage as well as references to the entity in publicity materials and other park related documents. Name recognition acknowledges a substantial philanthropic contribution for a facility, piece of equipment, or special use area with a conspicuously placed plaque.
• Plaques: All plaques shall be of standard size, materials, and appearance. Standard inscription shall be: “(Space or Equipment Name) made possible by a generous contribution from (Donor Name)”, or similar language approved by the City Council. The cost of producing and installing plaques shall be funded by the donation. Plaques shall not be affixed to moveable equipment or furniture.

Recognition of Donor Contributions
All financial contributions shall be acknowledged in writing as soon as possible upon receipt of the contribution. Such correspondence shall include proper tax information. In the case of a memorial or gift contribution, an acknowledgement shall be sent to the honoree or the family of a memorialized person, if applicable.

Unless the donor specifies anonymity, donors may be acknowledged by any of the following means: donor wall, annual reports, newsletters, online promotions, and/or special media advertising. Anonymous gifts may be accepted without formal recognition.

Guidelines for Naming and Name Recognition of Philanthropic Contribution Named Equipment and Special Use Areas: In general, only equipment or designated special use areas shall be named for an individual, family, foundation, or corporation. The amount required for the naming of such a space shall be as shown on Attachment A, which shall be subject to change by the City Council as necessary.

Plaques for named spaces shall be prominent and readily identifiable. Lettering shall be scaled appropriately to the aesthetics of the facility, equipment or area so named.

Plaque and Sign Recognition
Donors to public, non-public spaces, or areas inappropriate for naming may be recognized by a conspicuously displayed plaque or sign at or near the area. 113
The cost shall generally be less than a named or titled room and the amount shall be determined at the time of the donation by the City Council. Recognition may be in the name of an individual, family, foundation or corporation making the contribution.

Plaques shall be of standard size and appearance throughout the library building and on the library grounds.

Guidelines for Honorific Naming
All naming opportunities may be afforded to individuals who have given extraordinary service to the Half Moon Bay Library, the parks and recreation or performing arts profession, or the Half Moon Bay Coastside Community. The individual must have left the service of the City or partner agency, either in the capacity of employee, volunteer, supporter, or trustee, for a period of no less than one year unless otherwise excepted by a City Council resolution. The City Council shall have final authority for such naming.

Guidelines for Corporate Naming and Name Recognition
Eligibility: Corporations that are compatible with the City and library’s mission and purpose and, in the opinion of the City Council, reflect a positive influence on the City and park may be eligible for naming or name recognition for all naming opportunities.

Such corporations must have a high ethical standard of business practice, as determined at the sole discretion of the City Council.

Corporate Name Recognition: All signage and plaques for corporate name recognition will follow the same standards as signs and plaques for individuals, families, foundations or other organizations. Generally, corporate logos will be excluded from such signs and plaques to avoid appearance of commercial influence.

Naming Agreements between the City of Half Moon Bay and Donor All agreements for naming through philanthropic gifts shall be documented in a Memorandum of Agreement (MOA) between the City and donor. MOAs shall detail the terms of the agreement in accordance with the terms of the naming policy and any conditions mutually agreed upon by the City and donor.

In the case of pledged donations or deferred gifts, the naming agreement may take effect with the first payment. In the case of failure of the donor to uphold the agreement, the City Council may withdraw the naming commitment. The City shall notify the donor regarding the consideration to withdraw the name and provide a reasonable time, as determined by the City, to correct the deficiency. In the event of removal of the naming, funds already collected shall not be returned to the donor.
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Attachment A
Carter Park Facility, Equipment and Special Use Areas Minimum Donation Stage $500,000
Amphitheatre $300,000
A/V equipment $250,000
BBQ/Picnic Area $150,000
Playground $150,000
Walking trail $100,000
Lawn area $100,000
Overlook Garden $75,000
Entry path $75,000
Concession area $75,000
Artwork (per piece) $50,000
Portable dance floor $10,000
Benches/Seating/Tables (per piece) $10,000
Trees (per tree) $5,000
Seat Tiles $2,500
Stepstones (where could they go?) $1,000
Donor Recognition Levels Minimum Donation
Superstar
Facility Recognition
(donor wall or other
physical recognition)
$50,000+
Celebrity $25,000-49,999
Performer $10,000-24,999
Producer $2,500-9,999
Roadie $500-2,499
Groupie Written Recognition $0-499
115

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: John Doughty, Public Works Director
Todd Seeley, Public Works Superintendent
TITLE: AWARD OF CONSTRUCTION CONTRACT AND PROFESSIONAL SERVICES AGREEMENTS FOR PHASE 1 OF THE CORPORATION YARD IMPROVEMENTS PROJECT (CIP NO. 9023)
______________________________________________________________________________ RECOMMENDATION:

Adopt the following resolutions authorizing the City Manager to:
1) Award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Paving and Grading of Half Moon Bay, CA, in the bid amount of $2,745,018 and approve a construction contingency not exceeding an amount of $219,601 (8 percent); and
2) Authorize the City Manager to execute a Professional Services Agreement with SWCA Environmental Consultants, Inc. for construction related Biological and Environmental Services in the amount of $54,725; and
3) Execute Amendment No. 2 to the professional services agreement with ELS Architecture and Urban Design for Architectural Construction Support in the amount of $20,000; and 4) Execute Amendment No. 3 to the professional services agreement with BKF Engineers for Engineering Construction Support in the amount of $10,000.

FISCAL IMPACT:

The FY 2021-22 Capital Budget included a total of $1,265,000 for the design, entitlement and bidding of the City Corporation Yard Improvement Project (CIP Project No. 9023). The Capital Budget includes $1,000,000 of construction related loan funding from the California iBank.

Approximately $420,000 was expended in soft costs (design, environmental investigation/review, entitlements and bidding), rehabilitation of existing storage barn and material purchases for scheduled staff site work which leaves a remaining fund balance of just over $800,000 for construction of Phase 1 improvements. Under terms of the City’s loan agreement with the California iBank, Phase 1 improvements are to be constructed and all loan proceeds are to be expended no later than August 1, 2022. 116

At the time of closing on the construction portion of the iBank loan, it was fully acknowledged that the $1 million would not cover the entire cost of construction of the Corporation Yard.

Only upon purchase of the land and obtaining loan proceeds was staff able to proceed with design of the Yard and complete all necessary entitlement work. During this intervening time, we have experienced rising construction costs. In an effort to minimize impact on the General Fund and maintain other capital improvements/maintenance, staff is proposing the funding gap to be met with transfers from various projects, closure and reallocation of the Main Street Bridge Fund as well as allocation of additional funding from unassigned monies. Staff has incorporated all the transfers and additional funding within the FY 2022-23 Budget for review by Council. The Table below details all the recommended actions:
1 All allocated funds will be used to construct Phase 1 Corporation Yard improvements, inclusive of necessary construction support and biological monitoring.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment and Healthy Communities and Public Safety Elements of the Strategic Plan.

BACKGROUND:

On March 3, 2020, the City Council authorized the City Manager to execute a Purchase and Sale Agreement (the “PSA”) to acquire the property with the intention of continued use for a 1 The 910,745 Unassigned General Fund Balance is related to the Library Fund Transfer item also on this agenda.

Contract Cost With Contingency $ 2,964,619
Corp Yard Phase 1 Budget
Lowest Responsive Bid (HMB Grading and Paving) $ 2,745,018 8% Contingency $ 219,601
Minus Existing Funds $ 800,000
Total Contract Cost Minus Existing Funds $ 2,164,619
Transfers/Adjustments
Additional Services Required $ 94,725.00
Total Funds Required $ 2,259,344
Trail Maintenance Program (FY23 Proposed) 50,000
Urban Forest Management Program (FY23 Proposed) 100,000 Parks Master Plan (FY 23 Proposed) 100,000
Main Street Bridge 489,000
Train Depot/Johnston House (FY23 Proposed) 175,000
Unassigned General Fund Balance 910,745
Total Available $ 2,259,344
Vehicle Replacement (FY23 Proposed) 50,000
Unassigned Public/Facilities Fund Balance ($600K balance) 284,599 Corp Yard (FY23 Proposed) 100,000
117

corporation yard, habitat restoration and passive open space uses. The negotiated purchase price (based on appraisal) was $2,180,000. Council directed staff to determine suitable funding options for the purchase and improvement of the property.

On July 21, 2020, the Council authorized staff to apply for funding through the State of California Infrastructure and Economic Development Bank (iBank) and accept the obligation payable to iBank for financing the purchase of the property and planned enhancements, subject to iBank approval. The Council also adopted a resolution declaring its official intent to reimburse expenditures related to the acquisition from the proceeds of the financing. The acquisition from POST would need to first be completed and recorded, prior to reimbursement from iBank using financing proceeds. Future safety and security improvements will also be eligible for reimbursement from iBank, up to a total of $3.2 million. The iBank loan closed in December 2020. The City’s acquisition of the site from POST closed and was recorded in January 2021. Under conditions of the loan agreement, all proceeds must be expended no later than August 1, 2022.

On August 24, 2021, staff took preliminary plans to the Planning Commission as part of a study session. At this meeting, comments were received from the public as well as Planning Commissioners that were helpful in developing plans for the site that aligned with the current use of the site while keeping a large portion of the property usable for future City use.

On March 29, 2022, the Half Moon Bay Planning Commission adopted a Mitigated Negative Declaration and approved a Coastal Development Permit, Architectural and Site Design Review, and Tree Removal Permits for the City of Half Moon Bay Corporation Yard Upgrade Project. The item had been duly noticed for a public hearing for March 22, 2022; and the Planning Commission continued the item to a date certain of March 29, 2022 upon the request of the Public Works Director. When the Commission acted on the item on March 29th, it approved the Coastal Development Permit with a condition that modified the project description. The modification included expanding an uplands portion of a wildlife corridor area.

On April 7, 2022, an appeal of the Planning Commission’s approval of the Coastal Development Permit was filed. The appeal cites two issues: 1) The expanded wildlife corridor, and 2) the configuration of the access driveway. The appeal was timely and complete. Because time is of the essence in processing this entitlement, primarily due to loan conditions, staff confirmed with the appellant that an expeditious hearing of the appeal was agreeable. The item was duly noticed for public hearing with site postings and mailed notices on April 8, 2022; and a newspaper notice running in the San Mateo Daily Journal on April 9, 2022. The appeal documentation is provided in Attachment 2.

On April 14, 2022, the City initiated circulation of a request for public bids for the Half Moon Bay Corporation Yard Improvement Project. This was done with respect to tight construction timelines due to the iBank loan conditions even though the Coastal Development Permit appeal had not been formally heard by the Council in a public hearing. 118

On April 19, 2022, the City Council held a public hearing on the two issues on which the Coastal Development Permit appeal was filed, and upheld the appeal with respect to the location of the wildlife corridor fencing in accordance with the City’s biologist’s recommendations as originally presented to the Planning Commission and denied the appeal with respect to the configuration of the access drive.

DISCUSSION:

Project Overview. The project consists of constructing improvements and upgrades to the existing City Corporation Yard at 880 Stone Pine Road. The Corporation Yard has operated, until purchase of the property, at this site (a former plant nursery) for 10 years under a license agreement or lease with POST. The Corporation Yard previously lacked an approved Coastal Development Permit and proceeding with construction of Phase 1 will establish the CDP, use and ensure full compliance with all current regulations including stormwater collection and treatment.

The Corporation Yard occupies a relatively small portion (approximately 4 acres) of 880 Stone Pine Road which includes approximately 21 total acres. The project site abuts Pilarcitos Creek to the south and includes an abandoned agriculture pond. The Creek and pond contribute habitat area for protected status species, including the CRLF and SFGS. As such, the project design incorporates special features to protect these species and maintain habitat for their benefit.

Phase 1 of this project includes the following: A new two-way paved access road that would replace the existing unpaved loop road, demolition and relocation of the existing trash and landscape materials enclosure, and, solar field, parking areas, gates, and fencing. Construction of a new fabric tension warehouse building (a “sprung structure”) would occur in a subsequent phase. The project design is basic and utilitarian in an effort to reduce initial construction costs and ongoing operational/maintenance costs. The Corporation Yard is proposed to be built in two phases. The construction contract under consideration will complete Phase 1 improvements. Phase 2 includes construction of a new vinyl shop/storage building. Given funding prioritization, it is unclear at this time when the City will proceed with final building design and bidding for Phase 2 which is estimated to be approximately $3.5 million. Phase 1 improvements include critical security, safety, environmental and operational improvements for the Maintenance Division staff as well as to partner emergency agencies that utilize the site for disaster response.

The project was designed to maintain the POST required 100-foot-wide conservation/trail easement, environmentally sensitive areas (ESHA) and required ESHA buffers which cover approximately 12 acres of the property. Additionally, the project includes additional protection for wildlife through the establishment of a wildlife corridor for protected reptiles and amphibians. The corridor will be protected with the installation of wildlife fencing including wildlife tunnels under the new access road. Environmental review, permitting and required mitigation costs represent approximately $700,000 of the total cost of the project, all of which will substantively benefit any subsequent future use of the remainder portion of 880 Stone Pine Road.
119

Bid Process. The City received four (4) bids before the scheduled bid opening time and date of 1:00 PM on Tuesday, May 10, 2022. The engineer’s estimate and submitted bids are summarized as follows:

Bidder Total
Engineer’s Estimate $2,600,000
Half Moon Bay Grading and Paving, Inc. $2,745,018
Andreini Brothers, Inc.,, $3,353,934
Redgwick Construction Co. $4,149,700
Azul Works, Inc. $2,142,000
The Azul Works, Inc. bid was initially deemed by the City to be the lowest responsible bid.

Upon closer inspection of their bid, questions arose about their costing and staff reached out to the bidder. After discussing their bid with them it was determined that Azul Work, Inc. unintentionally omitted a large portion of the project from their bid. When Azul Works, Inc. realized this, they formally withdrew their bid, making Half Moon Bay Grading and Paving, Inc. the lowest responsive bidder. The bid was reviewed by staff and City consultants and deemed formally to be the lowest responsible bid in accordance with City and State public bid requirements. References have been checked as well. The bid was approximately 5.5% above the Engineer’s Cost Estimate and well within City expectations given the volatility of the construction marketplace.

Additional Details. Additional services, such as Biological and Environmental Services, Geotechnical Services, and construction contingences will also be needed throughout construction and are subject to separate City Professional Services Agreements. These costs are included in the project construction budget.

As noted in the fiscal impact analysis, additional funding is needed to award the construction contract to Half Moon Bay Grading and Paving. Delays in the CDP issuance resulted in unexpected delays to bidding of the project. Staff had hoped to have a formal bid price to include in the draft Capital Budget presented in May to the City Council. However, with entitlement delays and construction cost volatility, staff was unclear if Phase 1 would exceed the City’s capacity to build in FY 2022-23. Thanks to a successful bid process and collaboration with Finance and the City Manager’s Office, staff is pleased to be able to recommend proceeding with improvements to the City Corporation Yard.

Anticipated Project Expenditures:

The following are the estimated project construction expenditures:

Construction $2,745,018
Architectural Support Services $30,000
Biological and Environmental Services $54,725
Engineering Support Services $10,000
120

Construction Contingencies (8%) $219,601
Total $3,059,344
Conclusion. Half Moon Bay Grading and Paving, Inc. was deemed the lowest responsive and responsible bidder. City Staff has reviewed their bid and determined that their bid is acceptable and free from significant material discrepancies. City Staff recommends City Council authorize the City Manager to:
1) Award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Grading and Paving, Inc. of Half Moon Bay, CA, in the bid amount of $2,745,018 and approve a construction contingency in an amount of $219,601 (8 percent of the contract amount) for potential change orders; and 2) Execute a professional services agreement with SWCA, Inc. for Biological and Environmental Services in the amount of $54,725; and
3) Execute Amendment No. 2 to the professional services agreement with ELS Architecture and Urban Design for Architectural Construction Support in the amount of $30,000; and 4) Execute Amendment No. 3 to the professional services agreement with BKF Engineers for Engineering Construction Support services in the amount of $10,000.

ATTACHMENTS:

1. Resolution to award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Paving and Grading of Half Moon Bay, CA, in the bid amount of $2,745,018 and approve a construction contingency not exceeding an amount of $219,601 (8 percent)

2. Resolution authorizing a professional services agreement with SWCA Environmental Consultants for Biological and Environmental Services

3. Resolution authorizing Amendment No. 2 to the professional services agreement with ELS Architecture and Urban Design for Architectural construction support

4. Resolution authorizing Amendment No. 3 to the professional services agreement with BKF Engineers for Engineering construction support services 121
RESOLUTION NO. C-2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY TO AUTHORIZE THE

CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT HALF MOON BAY GRADING AND PAVING, INC. OF HALF MOON BAY, CALIFORNIA, IN THE BID AMOUNT OF $2,745,018, AND APPROVE A CONSTRUCTION CONTINGENCY IN AN AMOUNT NOT EXCEEDING 8 PERCENT, OR $219,601, OF THE CONTRACT AWARD AMOUNT FOR POTENTIAL CHANGE ORDERS FOR THE CORPORATION YARD IMPROVEMENTS PROJECT (CIP PROJECT NO. 9023)
WHEREAS, On March 3, 2020, the City Council authorized the City Manager to execute a Purchase and Sale Agreement to acquire 880 Stone Pine Road with the intention of continued use for a Corporation Yard; and
WHEREAS, on March 29, 2022, the Planning Commission approved the environmental review, adopted a mitigated negative declaration (MND), and approved the Coastal Development Permit, Tree Removal Permit, and Architectural Review for the project; and WHEREAS, on April 14, 2022, the City Council held a public hearing on the two issues on which the Coastal Development Permit appeal was filed and upheld the appeal with respect to the location of the wildlife corridor fencing in accordance with the City’s biologist’s recommendations as originally presented to the Planning Commission and denied the appeal with respect to the configuration of the access drive.; and WHEREAS, The Corporation Yard project includes biological and environmental mitigation of identified endangered species, access road improvements, security upgrades and significant sire improvements; and
WHEREAS, the City advertised and opened four (4) bids received by the scheduled time, date, and place set forth in the Public Contract Code for the Corporation Yard Improvements Project of which three (3) were determined to be responsive bids; and WHEREAS, the lowest responsive and responsible bid was submitted by Half Moon Bay Grading and Paving, Inc., of Half Moon Bay, California, in the total amount of $2,745,018; and WHEREAS, with the adoption of the FY22-23 Budget, sufficient funds will be available to award this contract and complete the project.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Accepts the submitted three (3) responsive bids; and 2) Authorizes the City Manager to award and execute a contract to the lowest responsive and responsible bidder, Half Moon Bay Grading and Paving, Inc., of Half Moon Bay, California, in the total amount of $2,745,018, and approve a construction contingency 122
in an amount not exceeding 8 percent, or $219,601, of the contract award amount for potential change orders; and
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June 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
123
RESOLUTION NO. C-2022__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT FOR BIOLOGICAL AND ENVIRONMENTAL SERVICES WITH SWCA, INC. IN THE AMOUNT OF $54,725 FOR THE CORPORATION YARD IMPROVEMENTS PROJECT (CIP PROJECT NO. 9023) WHEREAS, On March 3, 2020, the City Council authorized the City Manager to execute a Purchase and Sale Agreement to acquire 880 Stone Pine Road with the intention of continued use for a Corporation Yard; and
WHEREAS, on March 29, 2022, the Planning Commission approved the environmental review, adopted a mitigated negative declaration (MND), and approved the Coastal Development Permit, Tree Removal Permit, and Architectural Review for the project; and WHEREAS, on April 14, 2022, the City Council held a public hearing on the two issues on which the Coastal Development Permit appeal was filed and upheld the appeal with respect to the location of the wildlife corridor fencing in accordance with the City’s biologist’s recommendations as originally presented to the Planning Commission and denied the appeal with respect to the configuration of the access drive.; and WHEREAS, The Corporation Yard project includes biological and environmental mitigation of identified endangered species, access road improvements, security upgrades and significant sire improvements; and
WHEREAS, biological and environmental services are necessary for the project and SWCA, Inc. have provided quality biological and environmental services for numerous capital projects in the last several years.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to enter into a Professional Services Contract with SWCA, Inc. in the amount of $54,725 for biological and environmental services for the Corporation Yard Improvements Project (CIP No. 9023).
***************************************************************** 124
I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June 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
125
RESOLUTION NO. C-2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE MODIFICATION NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH ELS+, INC IN THE AMOUNT OF $30,000 FOR DESIGN AND

ARCHITECTURAL SUPPORT DURING THE CONSTRUCTION PHASE OF THE CORPORATION YARD IMRPOVEMENTS PROJECT (CIP PROJECT NO. 9023)
WHEREAS, On March 3, 2020, the City Council authorized the City Manager to execute a Purchase and Sale Agreement to acquire 880 Stone Pine Road with the intention of continued use for a Corporation Yard; and
WHEREAS, the City entered into a Professional Services Agreement with ELS+ on March 16, 2021 to begin conceptual planning for construction of new facilities at the Corporation Yard; and
WHEREAS, the City amended the original contract on August 17, 2021 to begin design planning and construction document preparation for the Corporation Yard Project; and WHEREAS, the City needs to amend the contract with BKF Engineers for a second time for design and architectural support during the construction phase of the Corporation Yard Improvements Project.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute Amendment No. 2 to the Professional Services Agreement with ELS+, Inc. for design and architectural support during the construction phase of the Corporation Yard Improvements Project in the amount of $30,000. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7TH day of June 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
126
RESOLUTION NO. C-2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3

TO THE PROFESSIONAL SERVICES AGREEMENT WITH BKF ENGINEERS IN THE AMOUNT OF $10,000 FOR ENGINEERING SUPPORT DURING THE CONSTRUCTION PHASE OF THE CORPORATION YARD IMRPOVEMENTS PROJECT (CIP PROJECT NO. 9023) WHEREAS, On March 3, 2020, the City Council authorized the City Manager to execute a Purchase and Sale Agreement to acquire 880 Stone Pine Road with the intention of continued use for a Corporation Yard; and
WHEREAS, the City entered into a Professional Services Agreement with BKF Engineers on April 15, 2021 to begin conceptual planning for construction of new facilities at the Corporation Yard; and
WHEREAS, the City amended the original contract on July 9, 2021 to begin design planning for the Corporation Yard Project; and
WHEREAS, the City amended the contract with BKF Engineers for a second time on October 13,2021 for design development and construction document preparation for Phase 1 of the Corp Yard Project; and
WHEREAS, the City needs to amend the contract with BKF Engineers for a third time to cover engineering support during the construction phase of the Corporation Yard Improvements Project.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute Amendment No. 3 to the Professional Services Agreement with BKF Engineers for engineering support during the construction phase of the Corporation Yard Improvements Project in the amount of $10,000. ***************************************************************** 127
I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of June 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
128

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
VIA: Bob Nisbet, City Manager
FROM: Matthew Chidester, Deputy City Manager
Karen Decker, Senior Management Analyst
TITLE: HALF MOON BAY HOTEL BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2021, RESOLUTION OF INTENTION TO CONTINUE TO LEVY ASSESSMENTS FOR FISCAL YEAR 2022-23, AND FUNDING REQUEST FOR FISCAL YEAR 2022-23 ______________________________________________________________________________ RECOMMENDATION:

By motion: 1) approve the Half Moon Bay Hotel Business Improvement District Annual Report for 2021; 2) adopt a resolution declaring the City’s intention to continue the Half Moon Bay Hotel Business Improvement District, to continue the basis and to levy the assessment for the District, and to set a date (June 21, 2022) for the public hearing on the District and the assessment for FY 2022-23; and 3) consider a $40,000 funding request to be included in the FY 2022-23 Recommended Budget.

FISCAL IMPACT:

There is no fiscal impact associated with approving the Annual Report or adopting the resolution of intent. If directed, staff will include any funding contribution in the FY 2022-23 Recommended Budget.

STRATEGIC ELEMENT:

This action supports the Fiscal Sustainability element of the Strategic Plan.

BACKGROUND:

Transient Occupancy Tax (TOT) is historically the City’s single highest revenue source, typically accounting for approximately 40 percent of the annual operating budget. TOT taxes are collected from hotels, bed and breakfasts, inns, RV Parks, campgrounds, and short-term vacation rentals. Hotels are the largest contributor, providing approximately 95 percent of TOT collections. TOT revenue typically grows year-over-year, and prior to the pandemic, was averaging close to $7 million annually. Although the pandemic initially took a toll on revenues, tourism returned to the coast sooner than projected. In fiscal year 2020-21 the City collected $4.8 million in revenues and is projected to receive $7.2 million in fiscal year 2021-22. The City remains optimistic in the full recovery of TOT.
129

In 2004, the City of Half Moon Bay established a Hotel Business Improvement District (BID) pursuant to Part 6 Division 18 of the California Streets and Highway Code, commencing with Section 36500 (Code). The purpose of the BID is to promote lodging at hotels within the City, administer marketing programs that increase overnight lodging, and fund BID-related activities.

In 2017, after receiving approval from the San Mateo County Board of Supervisors, the BID’s boundaries were expanded to include 10 additional commercial lodging establishments operating in the unincorporated areas of the Coastside, believing that adding these establishments would further its purpose of promoting tourism and lodging along the coast.

The Half Moon Bay Chamber of Commerce and Visitors Bureau (Chamber) is designated as the Managing Agency for BID-related activities and, pursuant Section 36533 of the Code, prepares an annual report which summarizes the BID’s priorities, outcomes, and expenditures from the previous calendar year. The report is to be reviewed and approved by the Council and, following approval, the Council must adopt a resolution of intent to levy the annual assessment for the following fiscal year. The resolution of intent also sets a public hearing in order to receive any written or oral protests against the continuation of the BID.

Since 2013, the City has provided annual funding to help support the BID’s activities, including marketing and helping to support a Professional Corporate Sales Manager to increase mid-week overnight stays in local hotels. In FY 2021-22, the City provided the BID with $40,000 for these purposes. Due to the different fiscal years for the City (July – June) and the BID (January – December), the City contributions have been split into two equal payments, one in July and one in January.

DISCUSSION:

Hotels continue to be hit hard by the COVID-19 pandemic but have seen some rebound in occupancy rates and are hopeful for the summer travel season. It is expected that initial travel increases will begin in more rural areas, small towns, and within driving distance of travelers’ homes. This puts the Coastside in an advantageous position to entice individuals and families from the region and state to visit and spend one or more nights. With the passage of increases in the TOT rate by voters in November 2020, and the second increase taking effect on July 1, 2022, it remains to be seen how much of the projected additional revenue is realized by the City and when.

BID Annual Report for 2021
On May 10, 2022, the Chamber submitted the BID’s annual report for calendar year 2021. The BID generated $177,937 in revenue which includes $1 per room night collected by the member hotels, website advertising revenue, as well the City’s contribution. The total expenditures for 2021 were $174,197. There was a $40,000 increase in expenditures from the previous year which reflects the rise in travel resulting from fewer and less frequent COVID restrictions.

Reserves increased from $21,587 at the end of 2020 to $24,587 as of December 31, 2021.

Staffing shortages have impacted several industries including hospitality and tourism. The BID was unable to reinstate the Corporate Group Sales Position in 2021. Given fluctuating levels of 130

comfort for corporate travel, the BID was unable to host as many travel writers or hosts its annual FAM trip for Event Planners. Funds will carry over to support activities when corporate and work travel increase and stabilize.

BID Funding Request for FY 2021-22
For FY 2021-22, the BID is again requesting $40,000 to help with marketing and outreach efforts as the local tourism industry strives to recover from COVID-19 impacts. They believe that Half Moon Bay and the Coastside as a whole are well positioned to take advantage of demand for travel as COVID-19 case rates continue to decrease and business and travel restrictions are relaxed. Any City contribution would be leveraged against the carried forward fund balance from 2021 and current year BID revenues to develop a campaign to encourage overnight travel to the Coastside and hopefully assist our local economy in its recovery.

Resolution of Intention and Public Hearing
If the City Council adopts the Resolution of Intention, a public hearing will be noticed for June 21, 2022. The public hearing will provide the businesses and the community an opportunity to voice their opinions regarding the FY 2022-23 assessment and protest the assessment.

At the public hearing, the testimony of all interested persons for or against the continuation of the BID, the boundaries of the BID, or furnishing of specified types of improvements or activities will be heard. Any interested person may make a protest orally or in writing.

However, only written protest protests will be considered in determining if there is a majority protest. The form and manner of protests shall comply with Streets and Highways Code Section 36524 and 36525.

The City Council may continue the proposed BID at the public hearing unless oral or written protests are received from businesses that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the BID for at least one year.

ATTACHMENTS:

1. Half Moon Bay Hotel BID 2021 Annual Report

2. Resolution declaring the City’s intention to continue the Half Moon Bay Hotel Business Improvement District, to continue the basis and levy the assessment for the District, and to set a date for the public hearing on the District and the assessment for FY 2022-23 131
RESOLUTION NO. C-2022-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY

DECLARING ITS INTENTION TO CONTINUE THE HALF MOON BAY HOTEL BUSINESS

IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS AND TO LEVY THE ASSESSMENT FOR THE

DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR FISCAL YEAR 2022-23
WHEREAS, Section 36500 et seq. of the California Streets and Highway Code (the Parking and Business Improvement Area Law of 1989) authorizes cities to establish and renew business improvement areas for the purpose of promoting tourism; and WHEREAS, on June 15, 2004, the City Council approved an ordinance adding Section 3.100 (Hotel Business Improvement District) to the Municipal Code, which established the Half Moon Bay Hotel Business Improvement District and appointed the Half Moon Bay Coastside Chamber of Commerce and Visitors’ Bureau as the Managing Agency to provide oversight and recommendations regarding the use of the assessment funds; and WHEREAS, the California Streets and Highway Code requires that the Chamber, as the Managing Agency, prepare and submit an annual report for the prior year and stating the proposed changes, improvements and activities for the upcoming year, and requires the City Council to adopt a resolution of its intent to continue the BID and levy the assessment; and WHEREAS, on May 9, 2022, the Chamber submitted the Annual Report for 2021; and WHEREAS, the City Council desires to adopt a Resolution approving the Annual Report for 2021 and declaring its intent to continue the BID and levy assessments for FY 2022-23.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Half Moon Bay, that:

Section 1. The City Council proposes to continue the Half Moon Bay Hotel Business Improvement District in accordance with Half Moon Bay Municipal Code Chapter 3.100 and the Streets and Highways Code Sections 36500 et seq. and levy assessments for the FY 2022-23.

Section 2. The Annual Report is on file with the City Clerk and contains a full and detailed description of activities provided in 2021. No changes to the District boundaries are proposed and there are no changes to the assessment proposed.

Section 3. The assessment levied by the BID shall be used for activities and programs promoting lodging within the district and administer marketing programs that increase overnight lodging.
132
Section 4. The assessment is $1 per rented room night.

Section 5. A public hearing, held pursuant to the Half Moon Bay Municipal Code Chapter 3.100 and Streets and Highways Code Section 36535, to allow for comments and to receive written and oral protests on the BID and proposed assessment, is hereby set for 7:00 pm on Tuesday, June 21, 2022, before the City Council of the City of Half Moon Bay via Zoom Webinar and live Spanish translation will be available within the Zoom platform.

Section 6. At the public hearing, the testimony of all interested persons for or against the continuation of the BID, the boundaries of the BID, or furnishing of specified types of improvements or activities will be heard. Any interested person may make a protest orally or in writing. However, only written protest protests will be considered in determining if there is a majority protest. The form and manner of protests shall comply with Streets and Highways Code Section 36524 and 36525.

Section 7. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made.

Written protests shall contain a written description of the business in which the person signing the protest is interested sufficient to identify the business. If the person signing the protest is not shown on the official records of the City of Half Moon Bay as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business.

Section 8. If at the conclusion of the public hearing, there are of record, written protests by the owners of lodging businesses within the BID that will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to continue the BID shall occur. New proceedings to continue the BID shall not be undertaken again for the period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the BID.

Section 9. The City Clerk is instructed to provide notice as required by the Half Moon Bay Municipal Code Chapter 3.100 and Streets and Highways Code 36534.

The City Clerk shall give notice of the public hearing by causing this Resolution of Intention to be published once in a newspaper of general circulation in the City no less than seven (7) days before the public hearing, and by mailing copies of this Resolution of Intention to each business 133
subject to the assessment within seven (7) days of the City Council’s adoption of the Resolution of Intention.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7
th day of June, 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
134

BUSINESS IMPROVEMENT DISTRICT
2021 Annual Report
135

MISSION
The assessment levied by the Business Improvement District shall be used to promote lodging within the district and administer marketing programs that increase overnight lodging.

BOARD OF DIRECTORS
Chair Dana Dahl, Beach House Half Moon Bay
Vice Chair David Vipond, Nantucket Whale Inn
Treasurer Keith Wesselman, Half Moon Bay Lodge
2021 CONTRIBUTIONS
Each BID Hotel Participant pays $1 per rented room night.

1. Aristocrat $8,979 2020 = $9,200

2. Beach House Half Moon Bay $15,505 2020 = $11,470

3. Cameron's Inn $148 2020 = $74

4. Coastside Inn Closed 2020 = $5,048

5. Cypress Inn on Miramar Beach $5,431 2020 = $4,273

6. Half Moon Bay Inn $1,808 2020 = $1,135

7. Half Moon Bay Lodge $16,979 2020 = $12,038

8. Harbor View Inn $2,551 2020 = $4,017

9. Inn at Mavericks, The $1,640 2020 = $1,340

10. Mill Rose Inn & Garden $805 2020 = $541

11. Miramar Inn & Suites, The $4,373 2020 = $3,323

12. Nantucket Whale Inn $1,109 2020 = $151

13. Ocean View Inn $774 2020 = $261

14. Oceano Hotel & Spa $21,160 2020 = $12,836

15. Pacific Victorian Inn Closed 2020 = $35

16. Quality Inn $9,903 2020 = $5,857

17. Ritz Carlton $45,604 2020 = $33,504

18. San Benito House (Shut Down in April 2021) $71 2020 = $222

19. Seal Cove Inn Did Not Report 2020 = $1,910

20. Zaballa House $378 2020 = $571
BID Contributions $137,218 2020 = $107,806
City of Half Moon Bay Contributions $40,000 2020 = $50,000 Website Advertising $719 2020 = $4,534
Total Income $177,937 2020 = $162,340
Fund Balance from 2020 $25,883 Unused from Pandemic
1 136

BID PRIORITIES & OUTCOMES
● Create opportunities and buzz around HMB as a “Drive to” destination. ● Proactively pitch and respond to the media. Coordinate and host travel writers. ● Increase traffic to the ‘Visit’ website with new content and paid Google advertising. ● As Corporate Groups begin to rebound, be prepared with a rapid response.

Mid-Week Corporate Sales
Corporate meetings and group sales were halted in March 2020 with the onset of the COVID-19 pandemic. It is expected that corporate travel will pick up in 2022 and the BID will be ready to pick up sales as they return.

Public Relations
Articles Written About Half Moon Bay 48 +9 from 2020
Travel Writers Hosted 7 +3 from 2020
Website Statistics
All Users 447,510 +21,690 from 2020
Average Sessions Per User 1.22 +/- 0 from 2020
Total Page Views 889,377 +60,385 from 2020

OCCUPANCY
Total Available Rooms Per Night 739
Total Available Room Nights for 2021 269,735
Total Occupied Room Nights for 2021 137,218 51% +14% from 2020 City Reported TOT $7,188,491
Estimated Economic Impact $4 Billion
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2021 EXPENDITURES
Marketing
● Website & Email $12,215 Maintain VisitHalfMoonBay.org & Email News ● Digital Advertising $22,565 Ads thru Digital Media Channels & Blog Articles ● Print Advertising $5,360 Ads in Visitor Serving Publications ● Media Acquisition $437 Tradeshows & Hosting Expenses for Travel Media ● PR Firm $54,000 National Article & Travel Writers Procurement ● Marketing Firm $45,000 Digital & Print Advertising Management Corporate Group Sales
● Virtual Trade Show $0
● Contracted Sales $0
Operations
● Management $34,305 Bookkeeping & Admin Services
● Operating $315 Software & Fees for Operating
Total Expenses $174,197 2020 = $135,914 2019 = $195,824 Fund Balances Carried $5,000 Due to the pandemic we were unable to reinstate over to 2022 Budget the Corporate Group Sales Position in 2021. $24,623 Due to the pandemic surges and anti-travel
sentiment for safety reasons, we were unable to
run all of the digital ads and print ads intended.

We were unable to host as many travel writers,
nor host our annual FAM trip for Event Planners.

Funds will carry over as these activities will be
completed when safe and prudent to do so.
2020 RESERVE
Starting Balance $21,587 2020 = $21,044
Deposit of Net Revenue $0 2020 = $543
Expenditures $0 2020 = $0
Ending Balance $21,587 2020 =$21,587
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 7, 2022
TO: Honorable Mayor and City Council
FROM: Bob Nisbet, City Manager
VIA: Lisa Lopez Rossi, Administrative Services Director Kenneth Stiles, Finance Manager
Bryan Lopez, Senior Management Analyst
TITLE: FISCAL YEAR 2022-2023 RECOMMENDED BUDGET
______________________________________________________________________________ RECOMMENDATION:

Receive a presentation on the FY 2022-23. Recommended Budget, and after accepting public comments and providing additional direction to staff, direct staff to return with the final proposed budget for adoption on June 21, 2022.

FISCAL IMPACT:

There is no fiscal impact associated with this staff report. Following the hearing, any changes directed by the Council will be incorporated into the FY 2022-23 Recommended Budget which will be presented to the Council for adoption on June 21, 2021.

STRATEGIC ELEMENT:

This recommendation supports all four strategic plan elements: Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, and Inclusive Governance.

BACKGROUND:

The City’s budget is the result of a thorough, collaborative, and transparent process involving the City Council, City staff, and the community. The annual budget cycle begins each year with the creation of a budget schedule and is completed with a public hearing followed by approval of the recommended budget by the City Council in June.

Due to restrictions imposed during the pandemic, the budget process included virtual public meetings intended to gather feedback, help inform priorities, and provide opportunities for the community to participate in the development of the City’s annual budget. Public meetings associated with this year’s budget process are shown in the table below:
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PUBLIC

MEETING BUDGET STEP TIME FRAME
1-2 Community Listening Sessions March 9 and 13
3 Council Strategic Planning and Priority Setting Workshop March 22 4 Finance Subcommittee: Review of proposed budget for
Fiscal Year 2022-2023
May 19
5-6 Public Hearing / Adoption: City Council Review and
Approval of Recommended FY 20-21 Budget
June 7; June 21
On May 19, 2022, the City Council Finance Subcommittee met to review the proposed FY 2022-23 operating and capital budget and recommended to send the budget to the full Council on June 1, 2021.

DISCUSSION:

Due to the pandemic and its impact on City revenue since mid-March 2020, City staff has been working to handle the effect to City finances and options to keep the City operational. As with many cities throughout the nation, the City began FY 2020-21 with significant financial challenges.

However, due to tourism returning to the coast sooner than expected and additional relief from ARPA funds, the City has returned to pre-pandemic levels in revenues during Fiscal Year 2021-22.

Although there are ongoing concerns with recent inflation and possible recession, the City continues to be cautiously optimistic in revenue growth going into Fiscal Year 2022-23.

Council Priorities:

During FY 2021-22, the City completed several significant projects that are aligned with the Council’s four Strategic Elements: 1) Infrastructure and Environment, 2) Healthy Communities and Public Safety, 3) Fiscal Sustainability, and 4) Inclusive Government.

In preparation for the upcoming budget, the City Council hosted online community listening sessions, which allowed the Council to hear directly from members of the community to gain additional insight into the community’s priorities for budget allocation of resources over the next year and beyond.

The listening sessions culminated in a priority setting workshop on March 22, 2022. At this workshop, the City Council established the following five broad priorities:

1. Affordable Housing (an ongoing multi-year priority)

2. Public Health, Safety and Emergency Preparation

3. Community and Climate Resilience and Sustainability

4. Economic Recovery and Development

5. Transportation, Circulation and Mobility
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Staff has included additions to the fiscal year 2022-23 budget to address these priorities.

Budget at a Glance:

The City’s total estimated revenue (all funds) for FY 2022-23 is $43.5 million. This amount represents a 5.7 percent increase from FY 2021-22. This is primarily due to increased general fund revenues and more specifically, Transient Occupancy Tax (TOT) and American Rescue Plan Act (ARPA) funding. General Fund revenues are approximately 48.8% percent of total revenues and the primary three sources of General Fund revenues are Property Tax, Sales Tax, and Transient Occupancy Tax (TOT), as seen on the pie chart below.

As economic activity continues its return to the coast, these primary three sources are expected to increase by 13% from FY 2021-22. The total increase of general fund revenues from the year prior is 8.9%. These projections are based on staff analysis of local conditions and reflect information received from several sources, including the City’s Sales and Transient Occupancy Tax consultants.

The City’s total proposed budget expenditures for FY 2022-23 are $54.3 million, 43 percent of which, are from the General Fund. Total expenditures are 4.3 percent more than FY 2021-22. This Fund Name Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 16,827,803 16,601,802 19,556,584 21,297,021 Enterprise Funds 6,928,511 5,872,894 6,889,582 8,247,322 Special Revenue and Capital Projects 7,183,991 13,802,035 12,323,024 11,584,719 Internal Service Funds 2,227,754 2,130,922 2,432,813 2,440,406 Debt Service 143,939 337 - -
Grand Totals 33,311,998 38,407,989 41,202,003 43,569,468 Revenues and Transfers All Funds
Property Tax
16%
Sales & Use Tax
15%
Transient
Occupancy Tax
41%
Intergovernmen
tal
7%
Charges for
Services
4%
Other Fees &
Taxes
5%
Other Revenue
12%

GENERAL FUND REVENUES
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increase is primarily due to increase spending in the general fund with the use of ARPA funds.

Capital improvements are approximately 30 percent of total expenditures, or $16.2 million. Of the General Fund expenditures, the largest departmental budget is for public safety as shown in the pie chart on the following page.

Looking ahead. Based on assumptions, known future costs, and historical information, staff prepared a five-year forecast for general fund revenues and expenditures. Forecasts are generally used to spot any significant fiscal issues in future years. The chart below shows revenues and expenditures during this five-year period.

Fund Name Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 17,149,915 16,096,447 21,445,811 23,465,844 Enterprise Funds 6,346,283 7,051,945 11,439,045 11,061,171 Special Revenue and Capital Projects 7,669,179 10,053,726 16,508,883 17,111,638 Internal Service Funds 1,784,972 1,807,936 2,704,141 2,698,806 Debt Service 11,783,851 30,000 - -
Grand Totals 44,734,200 35,040,054 52,097,880 54,337,459 Expenditures and Transfers All Funds
Administrative
Services
6% Capital
Improvements (CIP)
17%
City Attorney
2%
City Clerk
5%
City Council
1%
City Manager
7%
Community
Development
9%
Debt Service
3%
Other Operating
Transfers
5%
Public Safety
21%
Public Works
16%
Recreation &
Community Vitality
8%

GENERAL FUND EXPENDITURES BY DEPARTMENT
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Based on the forecast, expenditures will potentially exceed revenues in future years. If so, these deficits by default would have to be mitigated by either unassigned fund balances, using reserves, and/or making cuts to expenditures. The chart below details those balances during the same fiveyear period.

Based on reserve levels and future opportunities to adjust future budgets, there appears to be no significant issue of fiscal stability at this time. However, potential deficits may occur in future 18 19
20 21
22 23
24 25
26 2022 - 23 2023 - 24 2024 - 25 2025 - 26 2026 - 27 2027 - 28

MILLIONS
FIVE-YEAR FORECAST: GENERAL FUND REVENUES AND

EXPENDITURES
Revenues Expenditures
-
2 4
6 8
10 12
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28

9.73 9.54 8.82 7.94 6.91 5.69

0.36 0.00
Millions
FIVE-YEAR FORECAST: GENERAL FUND - FUND BALANCE
Reserves Unassigned ("Savings")
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years. With the annual budget process and mid-year adjustments, the City will have to plan to address this through either increasing revenue or decreasing expenditures.

CONCLUSION
Staff has developed this recommended budget for Fiscal Year 2022-23 based on information mentioned previously and requests any comments or changes from the City Council. Following this hearing, the final proposed budget will be brought back on June 21, 2022 for formal adoption and implementation on July 1, 2022.

ATTACHMENT:

Draft FY 2022-23 Budget
144
FISCAL YEAR 2022‐23

RECOMMENDED OPERATING BUDGET
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City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Tel: (650) 726-8910 Fax: (650) 726-8261
http://www.hmbcity.com

City Council
Debbie Ruddock, Mayor
Deborah Penrose, Vice Mayor
Robert Brownstone, Councilmember
Joaquin Jimenez, Councilmember
Harvey Rarback, Councilmember
City Manager
Robert Nisbet
Budget Book Preparation
Lisa Lopez, Administrative Services Director
Kenneth Stiles, Finance Manager
Bryan Lopez, Senior Management Analyst
Maggie Rodriguez, Administrative Assistant
Jessica Blair, Communications Director/City Clerk
Matthew Chidester, Deputy City Manager
Corie Stocker, Management Analyst
John Doughty, Public Works Director
Jennifer Chong, Public Works Program Manager
Karen Decker, Senior Management Analyst
Jill Ekas, Community Development Director
Catherine Engberg, City Attorney
Victor Gaitan, Management Analyst
Raymond Cruz, Accounting Technician
Carol Kim, Accounting Technician
Budget Message Translation
Julissa Acosta, Management Analyst
Cover and Budget Photographs
2021-22 Awardees of the Community Services Financial Assistance (CSFA) grant program Draft
146

PRESENTED TO
City of Half Moon Bay
California
For the Fiscal Year Beginning
July 01, 2021
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
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147
Finance Department
City of Half Moon Bay, California
December 27, 2021
The Government Finance Officers Association
of the United States and Canada
The Certificate of Recognition for Budget Preparation is presented by the Government Finance Officers Association to those individuals who have been instrumental in their government unit achieving a Distinguished Budget Presentation Award. The Distinguished Budget Presentation Award, which is the highest award in governmental budgeting, is presented to those government units whose budgets are judged to adhere to program standards
presents this

CERTIFICATE OF RECOGNITION FOR BUDGET PREPARATION
to
Date:

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Executive Director
148
Government Finance Officers Association of the United
States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Half Moon Bay, California, for its Annual
Budget for the fiscal year beginning July 01, 2021. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to conform to program
requirements, and we are submitting it to GFOA to
determine its eligibility for another award.

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149
California Society of
Municipal Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2021-2022
Presented to the

City of Half Moon Bay
For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting.

February 28, 2022

Marcus Pimentel Michael Manno, Chair
CSMFO President Recognition Committee
Dedicated Excellence in Municipal Financial Reporting
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Table of Contents
Budget Transmittal Message xx
Budget Transmittal Message (Spanish) xx
City Council xx
City Council Strategic Plan xx
About Half Moon Bay xx
Basis of Budget Preparation & Overview xx
Summary of Revenue by Fund xx
Summary of Expenditures by Fund xx
Transfers and Allocations Summary xx
Fund Balances xx
Gann Appropriations Limit xx

PERSONNEL SUMMARY
City-Wide Organization Chart xx
Executive Team xx
Personnel Summary xx
Staffing Level Summary xx

GENERAL FUND
General Fund Overview xx
General Fund Summary xx
General Fund Revenue xx
General Fund Expenditures xx
General Fund Projections xx
General Fund Statement xx

DEPARTMENT BUDGETS
City Council xx
City Manager xxx
City Attorney xxx
Communications/City Clerk xxx
Administrative Services xxx
Public Safety xxx
Public Works xxx
Community Development xxx

OTHER FUNDS
Special Revenue and Capital Funds xxx
Debt Service Funds xxx
Internal Service Funds xxx
Enterprise Funds xxx
CAPITAL IMPROVEMENT xxx
Capital Improvement Program xxx
OTHER INFORMATION xxx
Investment Policy xxx
Reserve Policy xxx
Master Fee Schedule xxx
Supplemental Statistical Section xxx
Budget Glossary xxx
Acronym Glossary xxx
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Image
Submissions
Placeholder
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CITY OF HALF MOON BAY
Executive Summary
Image Coming Soon
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Executive Summary
Budget Transmittal Message xx
Budget Transmittal Message (Spanish) xx
Budget Adoption Resolution xx
City Council Members xx
City Council Strategic Plan xx
About Half Moon Bay xx
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Budget Message
Placeholder
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Budget Message in
Spanish
Placeholder
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Budget Resolution
Placeholder
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City of Half Moon Bay
City Council
Mayor
Debbie Ruddock
Vice Mayor
Deborah Penrose
Council Member
Robert Brownstone
Council Member
Joaquin Jimenez
Council Member
Harvey Rarback
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Strategic Plan Elements/Initiatives
The following Strategic Elements are high level objectives that provide a long-range vision for the City’s future and a consistent focus for the City’s services.  Infrastructure and Environment
 Healthy Communities and Public Safety
 Fiscal Sustainability
 Inclusive Governance
Based on the Strategic Elements, the City Council has adopted Strategic Initiatives. These Initiatives are intended to help guide the City’s actions and work plans as well as focus efforts on addressing the City’s identified priorities.

Strategic Element:

Infrastructure and Environment
Strategic Element:

Healthy Communities and Public Safety
Initiatives:
• Preserve, upgrade, and maintain existing
City infrastructure to manage and make
progress on the backlog created as a result
of deferred maintenance.
• Maintain functional and effective usage of
City facilities; Sustain efforts to maintain
the City as clean, inviting, accessible and
aesthetically pleasing, throughout all
segments of the community.
• Continue to build and enhance a more
sustainable and resilient community by
incorporating green and sustainable
infrastructure projects and environmental
conservation.
• Utilize technology to maximize efficiency
and productivity for improved City
operations.

Initiatives:
• Foster opportunities for affordable housing
for very low, low, moderate, and above
moderate-income households, including
entry level housing, shared housing, etc.
• Enhance safety for pedestrians, bicyclist,
and motorists through a “complete streets”
approach
• Promote the health and well-being of
children, youth, families, and adults of all
ages and abilities.
• Promote a sustainable, comprehensive, and
forward looking environmentally/green
conscious community.
• Prepare City staff and community members
for inevitable natural disasters and other
emergencies.
• Provide comprehensive and innovative law
enforcement services to reduce crime and
the fear of crime; Inform and educate the
community around crime prevention and
awareness.

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Strategic Element:

Fiscal Sustainability
Strategic Element:

Inclusive Governance
Initiatives:
• Practice sound and responsible financial
management, while providing fiscally
sustainable government services that
address the needs of the community.
• Support and sustain a business
environment that contributes to economic
prosperity and revenue generation and
improves the economic well-being of the
community.
• Promote a balanced economic
development approach that retains,
attracts, and supports businesses Citywide
for a strong, stable, complementary, and
diverse business environment, including
tourism, coastal resources, conservation,
and farmland cultivation.

Initiatives:
• Manage the operations of the City as an
engaged, collaborative, and responsive
team of professionals who provide services
in an effective, accountable, and inclusive
manner.
• Emphasize a high level of community
engagement through public outreach and
building mutually beneficial, innovative,
collaborative community partnerships
throughout the City.
• Provide organizational development that
invests in staff leadership skills
development and other human resources,
to attract, develop, support, and retain a
highly qualified, valued, and diverse
municipal workforce.
• Maintain accuracy, consistency, and
frequency in the City’s public
communications, and increase Half Moon
Bay’s efforts to build credibility and mutual
trust with the community.
• Provide and manage a repository of City
records that is easily accessible to the
general public.
• Promote diversity by improving knowledge
of and accessibility to City services among
the Latino community with emphasis on
bilingual access and inclusiveness and civic
participation.
• Continue and enhance transparency and
accountability with community members,
providing easy access to information,
helpful and informed staff, and meaningful
opportunities to participate in the City’s
decision-making processes and other
municipal and community activities.

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About Half Moon Bay
“Live, Work, Play”
Location and Setting
Half Moon Bay sits on the Pacific
Coast between forested hills and
some of the most beautiful
coastlines of California. It is located
approximately 25 miles south of San
Francisco and an easy 45‐minute
drive from almost anywhere in the
Bay Area, within the western portion
of San Mateo County. Half Moon
Bay’s climate is usually mild
throughout the year.

Half Moon Bay is considered a rural
coastal community and is home to
approximately 13,000 people.

Featuring the best of Northern
California all in one place, visitors to
Half Moon Bay enjoy miles of white
sandy beaches, redwood forests, a
historic downtown filled with local
artisan shops, beautiful state parks,
fields of wildflowers, and trails along
ocean bluffs and mountain ridges as
far as the eye can see.

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History
The original inhabitants of Half Moon Bay were members of the Costanoan Rumsen Ohlone Tribe, one of eight bands of an indigenous group affiliated as Ohlone and/or Costanoan. Evidence of human dwelling and daily life surface throughout San Mateo County, including Half Moon Bay’s Pilarcitos Creek.

The ocean and land provided adequately for
its earliest residents in terms of sustenance
and trade. In addition to members of the
Rumsen Tribe, Spanish explorers and Mexican
cowboys lived or passed through this
Coastside. The beautiful coast, accessible
ports, proximity to San Francisco, and the
availability of land grants to early Mexican
settlers in the 1840’s were all factors in
attracting a new wave of people to the Half
Moon Bay area.

Governor Juan B. Alvarado gave a 4,424‐acre Mexican land grant to a soldier, Juan Jose Candelario Miramontes, in 1841. This land was known as Rancho Miramontes which eventually transitioned into today’s Downtown Main Street. The Main Street Bridge over Pilarcitos Creek was the entrance to the Miramontes Ranch. A Spanish immigrant named Estanislao Zaballa married into the family. He and other business prospectors brought a commercial flavor by opening some of Half Moon Bay’s first businesses such as saloons, rooming houses, and blacksmith shops. Named San Benito in the 1840’s, and later Spanishtown, Half Moon Bay received its current name in 1874 and is the oldest settlement in San Mateo County.

Settlers such as James and Petra
Johnston, the original owners of the
majestic ‘White House of Half Moon Bay,’
saw potential and aspirations for cattle
grazing and raising a family. James’
Scottish heritage and Petra’s Hispanic
background, in addition to the
Portuguese, Italian, Mexican and Spanish
influences on the coast, demonstrate the distinct mix of ideas, traditions, occupations, and cultures that defined the area’s character and identity.

In 1907, the Ocean Shore Railway was constructed along the shoreline from San Francisco to Tunitas Glen, just south of present‐day Half Moon Bay. Due to financial problems and the increasing popularity of the horseless carriage, the railroad ceased operation in 1920.

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The coast provided an ideal setting for “rum running”
during Prohibition Era (1920 – 1933) because of its unique setting among the hidden ocean coves and thick fog. The city was small and isolated, yet close enough to access San Francisco by car. During this era, the Ocean Beach Hotel (presently Miramar Beach Restaurant) and other stops
along the coast were raided numerous times for illegal
liquor, gambling, and prostitution.

In 1942, the California State Highway Department
constructed the Half Moon Bay Airport. Originally known asthe Half Moon Bay Flight Strip, it was used during WWII by the U.S. Army and eventually turned over to the U.S. Navy at the conclusion of the war.

In 1947, San Mateo County acquired the airport,
and ten years later, drag racing took it over. The
Half Moon Bay Dragstrip quickly became one of
the nation’s premier tracks. Half Moon Bay played
host to every big name the sport had to offer
during the 1950’s and 1960’s. Presently, the
airport hosts the annual Pacific Coast Dream
Machines show which features magnificent
driving, flying, and working machinesfrom the 20th
and 21st centuries.

At any given time, the airport houses approximately 80 aircraft and isself‐funded through airport user and business fees.

The City of Half Moon Bay was
incorporated in 1959. It has many
reminders of its early beginnings in the
mid‐nineteenth century as an
agricultural town. Fields of flowers,
artichokes, brussels sprouts, Christmas
trees, pumpkins and other crops blanket
the pastoral landscape in and around
town.

The City’s location on the coast attracted
hopeful business prospectors from many
industries including fishermen and
farmers. The American dream was reflected in these industrious individuals and their families whose ethnicities, aspirations, and languages converged to create a unique coastal community.

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Culture, Recreation, and Local Attractions
The City and Coastside are an agricultural, fishing and tourism destination. The local and surrounding agricultural community hosts a Saturday farmers’ market, and many rural roadside stands sell the bounty of the local farms and nurseries.

Roughly 3,000 tons of pumpkins are grown on the Coastside in a typical year and are featured in the Half Moon Bay Art and Pumpkin Festival held in October on Downtown’s historic Main Street.

The annual festival draws over 300,000 visitors for the two‐day event and features some of the world’s largest pumpkins.

Half Moon Bay provides a wide variety of public and
private attractions. The historic downtown is home
to shopping, art galleries, fine dining, and
entertainment.   Visitors can stroll downtown to
discover unique wares in local markets, shops, and
boutiques. Farm‐fresh produce and one‐of‐a‐kind
art pieces are available side‐by‐side. First‐class
dining can be found at restaurants, bakeries,
taquerias, delis and coffee shops. Menus include
fresh fish straight off the boat and ethnic offerings
from around the world.

A short distance from downtown, the California Coastal Trail meanders for five miles along beaches and bluff tops, providing a scenic setting for whale and bird watching, biking, walking and horseback riding. Golf can be enjoyed at two golf courses acclaimed for their quality and spectacular ocean backdrops.

The Coastside has its well‐known broad, sandy beaches. Adding to the coastal habitat diversity, just a few miles southwest of town is a redwood forest. Over a century ago, those forests were cut for the timber that was used in the development of the San Francisco Peninsula. Now those redwoods are enjoyed for their enduring natural beauty. There are thousands of parkland acres throughout the southern portion of San Mateo County offering coastal vistas and hillsides cloaked in vegetation, accessible via hiking and biking tails. Half Moon Bay serves as a gateway to these recreational offerings.

The City also boasts truly unique lodgings with breathtaking ocean views, world‐class hotels, and quaint cottages. Within the city limits, there are 13 hotels, inns, and Bed and Breakfasts in addition to three RV parks and campgrounds.

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Population and Demographics
There is a rich culture of diverse backgrounds and multi‐generational families who have lived in Half Moon Bay for well over 100 years. Several of its older residential neighborhoods feature century‐old architecture enhanced by colorful yards and gardens. It is not uncommon to find farmers, high‐tech entrepreneurs, and artists living together. There are approximately 4,900 households, and 3,500 families (71.4% of households). For persons 25 years and older, 88.3% have a high school diploma, and 53.3% have a bachelor’s degree or higher.1 A snapshot of demographic highlights include:
 Median Age 46.8
 Total Households 4,835
 Average Household Size 2.67
 Median Household Income $131,233
 Education – High School Degree or higher 88.3%
 Education – Bachelor’s Degree or higher 53.3%
 Median Housing Value $917,500
 Percent of Foreign‐Born Persons 24.3%
San Mateo County Context
San Mateo County is part of the nine county Bay Area region. On the bayside, cities are linked by Highways 101 and 280, El Camino Real, and the Caltrain corridor. The area is a vibrant job center and part of Silicon Valley. Many Half Moon Bay employed residents work outside the City throughout this jobs‐rich region.

Half Moon Bay has retained employment sectors traditional to the Coastside, while also accommodating new businesses and industries that are otherwise primarily thought to be located “over‐the‐hill.” Despite its smaller size and distinct economic base, the City’s revenues and expenditures indicate that the range and cost of City services are within the norm for the county as a whole.
1 https://www.census.gov/quickfacts/fact/table/halfmoonbaycitycalifornia/PST045218 https://worldpopulationreview.com/us-cities/half-moon-bay-ca-population Draft
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City Population General Revenues General Expenditures Outstanding Debt General Revenue General Expenditures O/S Debt Atherton 7,031 17,359,797                                       16,520,252                             ‐ $                    2,469 $                             2,350 $         ‐ Belmont 26,813 30,962,655                                       23,885,751                  5,159,305 $                    1,155 $                                891         192$ Brisbane 4,645 20,212,958                                       20,703,489                  8,065,000 $                    4,352 $                             4,457      1,736$ Burlingame 29,746 67,076,422                                       63,816,038                89,228,998 $                    2,255 $                             2,145      3,000$ Colma 1,729 18,069,190                                       18,477,759                  1,795,000 $                  10,451 $                           10,687      1,038$ Daly City 108,599 110,777,898                                  120,460,358                16,198,000 $                    1,020 $                            1,109         149$ East Palo Alto 30,545 28,920,000                                       29,398,195                             ‐ $                       947 $                                 ‐ 962 $ Foster City 32,842 57,147,656                                       54,277,013                84,860,600 $                    1,740 $                             1,653 $     2,584 Half Moon Bay 12,431 19,556,584                                      21,445,811                 7,189,169 $                    1,573 $                             1,725         578$ Hillsborough 11,447 30,412,447                                       30,174,172                             ‐ $                    2,657 $                             2,636 $         ‐ Menlo Park 33,780 62,703,307                                       62,703,307                16,294,495 $                    1,856 $                             1,856         482$ Millbrae 22,500 34,626,000                                       36,566,000                22,003,323 $                    1,539 $                             1,625         978$ Pacifica 38,183 40,860,858                                       42,423,604                24,829,257 $                    1,070 $                             1,111         650$ Portola Valley 4,456 7,085,080                                           7,085,080                             ‐ $                    1,590 $                             1,590 $         ‐ Redwood City 84,179 160,496,556                                  155,109,409                     118,493 $                    1,907 $                            1,843             1$ San Bruno 45,000 49,767,229                                       50,851,490                  6,819,133 $                    1,106 $                             1,130         152$ San Carlos 29,814 49,660,000                                       51,320,000                  2,787,135 $                    1,666 $                             1,721           93$ San Mateo 103,000 141,967,845                                  138,776,042                96,912,000 $                    1,378 $                             1,347         941$ South San Francisco 67,408 109,076,478                                  113,050,543             160,861,070 $                    1,618 $                             1,677      2,386$ Woodside 5,131 10,518,328                                         9,507,820                             ‐ $                    2,050 $                             1,853 $         ‐ Report Totals Per Capita
San Mateo County Cities Comparison
The City of Half Moon Bay ranks the 13th in revenues per capita comparing to other cities within the San Mateo county. The City ranks 12th in cost per capita and 12th in outstanding debt per capita.

General Revenues Per Capita
Half Moon Bay Ranks 13th out of 20 in Revenues per Capita 10,451
4,352
2,657
2,469
2,255
2,050
1,907
1,856
1,740
1,666
1,618
1,590
1,573
1,539
1,378
1,155
1,106
1,070
1,020
947
Colma
Brisbane
Hillsborough
Atherton
Burlingame
Woodside
Redwood City
Menlo Park
Foster City
San Carlos
South San Francisco
Portola Valley
Half Moon Bay
Millbrae
San Mateo
Belmont
San Bruno
Pacifica
Daly City
East Palo Alto
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Government Structure and City Services
The City of Half Moon Bay operates under a council‐manager form of government and is governed by a five‐member elected City Council. The City Council appoints a City Manager who is responsible for the oversight of daily operations and provides leadership for the City’s programs.

The City Council is the policy‐making body. In
2018, the City transitioned from at‐large
elections to by‐district, with four
councilmembers elected by district and an at‐
large elected mayor. The first two district
councilmembers were elected in 2020. The other
two, as well as the first elected at‐large mayor,
are slated to be elected in 2022. The City Council
appoints commission and committee members
to support the public policy making process.

The City Council meets regularly on the first and
third Tuesdays of each month at 7:00 p.m. and may call additional special meetings. All meetings of City Council and Council‐appointed commissions and committees are open to the public except when certain personnel matters and legal items are discussed.

By means of its own employees and through other shared or contract services, the City of Half Moon Bay provides a variety of municipal services to its citizens, including law enforcement, library, disaster preparedness, recreation programs, maintenance of streets, parks and buildings, sanitary sewer utility collection and maintenance, planning, housing, zoning, and building inspection, storm drain maintenance, code and parking enforcement, engineering, and general administrative services.

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City offices are typically open 8:30 a.m. to 5:00 p.m., Monday through Thursday (except holidays).

Since COVID‐19, city offices and facilities have scaled back hours of operation while continuing to deliver the full range of municipal services.

City of Half Moon Bay Main Line (650) 726‐8910 501 Main Street City Clerk’s Office (650) 726‐8250 501 Main Street
Administrative Services (650) 435‐8261 507‐B Purissima Street Recreation Services (650) 726‐8297 535 Kelly Avenue
Community Development (650) 726‐8260 501 Main Street
Public Works   (650) 750‐2012 880 Stone Pine Road
Code Enforcement (650) 726‐8260 501 Main Street
Public Safety (Business Line) (650) 726‐8288 537 Kelly Avenue Non‐Emergency ‐ After Hours (650) 726‐8286 537 Kelly Avenue Additional information about city services is available on the City of Half Moon Bay website at www.hmbcity.com
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CITY OF HALF MOON BAY
Budget Overview
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Budget Overview
Basis of Budget Preparation & Overview xx
Summary of Revenue by Fund xx
Summary of Expenditures by Fund xx
Transfers and Allocations Summary xx
Fund Balances xx
Gann Appropriations Limit xx
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Basis of Budget Preparation and Budget Overview The City Budget is the result of a thorough, lengthy, and collaborative process involving City Council leadership and City staff expertise. The City Council sets policy direction for the budget and City staff take into consideration economic trends to forecast revenue and create a budget that accomplishes the goals of the Council while ensuring the financial stability of the City. Local, County, State, and national economic trends are among the factors considered.

ECONOMIC UPDATE
During the 2021-22 fiscal year, the City saw economic activity and tourism return to the coast sooner than anticipated with major revenues returning to pre-pandemic levels. The City is optimistic that there will be continued economic growth and recovery though continues its practice of conservative planning for the FY 2022-23 budget. Despite continued economic growth, there is excessive inflation as well as other economic volatility because of supply chain issues, increased demand, low unemployment rates and high amounts of relief funds being poured into the markets. The uncertainty created through the pandemic, and now through the current economic volatility is expected to continue for the next several years despite the overall trend of economic improvement.

Many of the factors causing the current economic volatility are out of the City’s control and are anticipated to continue to impact revenues as well as expenditures. Inflation will increase the cost of projects considerably; unfunded pension liabilities may increase in relation to inflation and low investment returns; and reductions to local home sales or potential contraction of home prices could all impact city budgets. The City will continue to monitor the economic environment though anticipates overall continued economic improvement despite the challenges that may impact the City in the near term.

As of the March Jobs report which is the most current official data as of the preparation of this budget document the unemployment rate in San Mateo County has decreased to approximately

2.4%. The City of Half Moon Bay’s unemployment rate is 1.0%. The City unemployment rate is currently lower than the unemployment rates for San Mato County, California, and the nation during the same period.

State Budget Outlook and Impact on the City
The State of California’s budget and economy play significant roles in the City’s financial condition.

The State’s budget initially projected a substantial negative impact due to the pandemic, instead however, the state has recorded year over year budget surpluses and recently the state reported just shy of $100 Billion in surplus revenue.

It is anticipated that the states revenue sources will continue to improve restoring programs and services previously cut due to the pandemic. At this time, it is not anticipated that the changes in the States revenue and financial situation will impact the City of Half Moon Bay in a significant way.

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BUDGET DEVELOPMENT PROCESS
City staff prepare an annual operating budget each year containing revenues, appropriations, and other financial information pertaining to City’s operating and capital budgets. The philosophy employed in creating this budget focuses the City’s efforts on continuing to provide quality “core” municipal services in the most efficient way possible. This budget must be adopted by the City Council.

Council Strategic Planning
In preparation for the upcoming budget, the City Council hosted online community listening sessions, which allowed the Council to hear directly from members of the community to gain additional insight into the community’s priorities for budget allocation of resources over the next year and beyond.

The listening sessions culminated in a priority setting workshop on March 22, 2021. At this workshop, the City Council established the following four broad priorities:

1. Affordable Housing (an ongoing multi-year priority)

2. Public Health, Safety and Emergency Preparation

3. Community Climate Resilience and Sustainability

4. Economic Recovery and Development

5. Transportation, Circulation and Mobility
The table below demonstrates how the Council’s FY 2022-23 priorities fit in the larger Strategic Plan Elements and Initiatives that were adopted on February 9, 2016, and reaffirmed for FY 2022-23.

Strategic Elements
PRIORITY Infrastructure/
Environment
Healthy
Communities/
Public Safety
Fiscal
Sustainability
Inclusive
Governance
Affordable Housing ✓ ✓ ✓
Public Health, Safety and
Emergency Preparation ✓ ✓ ✓
Community Climate
Resilience and
Sustainability
✓ ✓ ✓
Economic Recovery and
Development ✓ ✓ ✓
Transportation,
Circulation and Mobility ✓ ✓ ✓ ✓
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Budget Preparation
The annual budget cycle begins each year with the development of budget instructions, including policy directives and a budget calendar, early in the calendar year and concludes with the budget adoption by the City Council in June as shown in the budget timeline table below.

Budget Timeline
March 9 & 13 Community Listening Sessions
March 22 Council Strategic Planning and Priority Setting Workshop May 19 Finance Committee Meeting
June 7 City Council Review of Proposed FY 2022-23 Budget June 21 City Council Formal Adoption
Each department was asked to provide their anticipated Base Budget operating expenditure changes with adjustments by known personnel salary and benefit costs. Each department is also given an opportunity to submit prioritized program changes for service enhancements or other program restoration to the Base Budget.

The City Manager reviewed department expenditure adjustments and formulated a Recommended Budget for Council’s consideration. Staff recommendations are based on many considerations, including the City’s strategic plan, staffing capacity, and potential impacts to the overall City operation, fiscal sustainability, and services provided to the community.

Final adoption of the Recommended Budget for FY 2022-23 is scheduled for June 21, 2022.

Basic Accounting
The City’s accounting system is maintained on a fund basis in accordance with governmental accounting standards. Each fund is considered a separate accounting entity with a self-balancing set of accounts that record assets, liabilities, fund equity, revenue, and expenditures. All governmental funds are budgeted and accounted for using the modified accrual basis of accounting, which recognizes revenues when they become susceptible to accrual—i.e., measurable, and available.

Expenditures are recognized when the fund expense or liability is incurred.

Budgetary Control
The City utilizes the following procedures to establish budgetary control:

1. The City Manager submits to the City Council a proposed balanced operating and capital budget for the following fiscal year.

2. After a review by the City Council, a public hearing is conducted, and further comment is received from the City Council and the public.

3. Upon completion of the hearings and modifications, if any, to the proposed budget, it is adopted by the City Council through passage of an appropriate resolution.

4. The department heads are responsible to ensure the expenditures of their departments stay within the budget.

5. The budget is amended during the year by the Council as needed.

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6. The City Manager is authorized to reallocate budget amounts of operational expenditure categories within funds as deemed necessary in order to meet the City’s operational needs.

7. City Council approval is required for all inter-fund transfers and use of reserves, and for transfers to/from the capital expenditure category. The legal level of budgetary control is at the fund level. This is the level that City management cannot overspend the budget without approval from the City Council.

The City Council holds public budget study sessions and adopts the City operating and capital budgets no later than June 30th of each year.

The philosophy employed in creating this budget document has been to focus the City’s efforts in continuing to provide quality municipal services, as well as the timely addressing of key infrastructure needs.

The City’s budget goal is to achieve a balanced budget with operating revenue, including reimbursements from other funds for services provided, equal to or greater than operating expenditures (including debt service).

Staff used the following guidelines in preparation for this budget: ending fund balance (or working capital in the enterprise fund) should meet the minimum level of no less than 30% of operating expenditures, where applicable. Under this policy, it is allowable for total expenditures to exceed revenue in a given year to fund capital improvement plan projects or other “one-time” non-recurring expenditures.

Ultimately, the City’s financial position and the resources in each fund will determine the level of services and the projects that the City will be able to deliver to the community in the upcoming fiscal year. These services and projects are included in the adopted annual budget.

FY 2022-23 ADOPTED BUDGET OVERVIEW
The Recommended FY 2022-23 Budget is balanced following the careful review and conservative assumptions.

In FY 2022-23, General Fund revenue of $21.3 million is projected to be less than the General Fund expenses of $23.4 million by $2.1 million.

This means that the City will not be able to adequately fund the cost of day-to-day operations and capital projects in Half Moon Bay without the use of any available unassigned fund balances. Future contributions from the General Fund to the CIP are contingent upon new revenues or one-time funds becoming available in the future.

Transient occupancy tax (i.e., “hotel tax”), property tax, and sales tax revenue make up 73% of General Fund revenue. While Transient Occupancy and sales tax revenue were reduced due to the ongoing pandemic, they are showing signs of significant rebound far sooner than anticipated.

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Budget Assumptions
The Base Budget is not an exact duplicate of the Adopted or Amended FY 2021-22 Budget because of actions the Council may have taken to modify the budget during the year, and most notably due to the FY 2022-23 budget assumptions used to develop the Base Budget. The following are the major assumptions used to develop the initial FY 2022-23 Base Budget:

Base Budget General Fund Revenue Assumptions
• Total General Fund revenue of $21.3 million shows an increase of 8.9% from the FY 2021- 22 Revised Budget.
• The top three revenue sources, Transient Occupancy Tax (TOT), Property Tax, and Sales and Use Tax are estimated to increase by 13% compared to the current budget; the increase of other revenues is estimated at less than 1%.

Base Budget Expenditures Assumptions
• Total General Fund expenditures of $23.4 million, which includes $19.4 million in operating expenditures and $4 million in capital transfers to fund the Capital Improvement Program. • Salary and Benefits projections include funding for 45 full-time equivalent (FTE) positions city-wide, and the increase of 2 positions.
• Vacant positions are budgeted at middle step. Projections also include salary step increases for staff members who may be eligible on their performance review dates. • Overtime funding is included in the projections based on historical averages of overtime hours worked.
• FY 2022-23 PERS retirement rates are budgeted as provided by CalPERS: Tier 1 (2.0% @ 55) at 11.610% for classic members and Tier 2 (2% @ 62) at 7.760% for new employees without prior municipal experience or who have had a break in service. • Salary adjustments have been made to reflect MOU provisions. • Annual amounts needed to pay for the unfunded liability. • Operating Expenses have increased by 8% over FY 2021-22 budgeted amounts.

Capital Improvement Program (CIP) Budget
The City’s 5-Year Capital Improvement Program (CIP) is a financial planning and prioritization tool that represents the City’s continuous efforts to protect public health and safety and enhance the quality of life and experience for visitors and residents in Half Moon Bay. It is adopted in conjunction with the City’s Operating Budget and is presented as a separate document.

Updating the CIP annually requires coordination and cooperation between all City departments. The process includes many internal meetings to discuss current and future CIP improvements, prioritization of identified improvements, review by various advisory boards, General Plan consistency finding by the Planning Commission, and adoption by City Council.

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While staff continuously assesses the needs of the City and prioritizes projects accordingly, the process to create the FY 2022-23 CIP officially began in December 2021. This resulted in the preliminary draft FY 2022-23 Capital Budget presented to the City Council on June 7, 2022.

Staff has continued to refine project scope and budget with a summary of the CIP included in the “Capital Improvement Program” section of this document. Individuals interested in learning more about the specific improvements planned for the upcoming Fiscal Year should refer to the published Capital Improvement Program book.

Budgetary Reserves
The Government Finance Officers Association (GFOA) has issued its recommended best practice for determining the appropriate level of unrestricted General Fund balance to be, at a minimum, no less than two months of regular General Fund operating revenues or expenses, which equates to approximately 17% of annual expenses.

The City’s Fund Balance Policy identifies fund balances (or reserves) as falling into the following categories: Restricted, Committed, Assigned, or Unassigned. In accordance with Government Accounting Standards Board (GASB) Statement No. 54 requirements and the City policy, the Council established the following designations for General Fund Committed Fund Balances:
• General Fund Reserve 30% of annual expenditures
• Economic Uncertainty Reserve of up to 20% annual operating expenditures The General Fund balances for FY 2020-21 through FY 2022-23 are detailed in the table below. Total operating expenses are also listed to demonstrate the percentage level of reserves and compliance with the City’s Fund Balance Policy.

Designations Actual
2020-21
Revised Budget
2021-221
Recommended
Budget 2022-232
Beginning Fund Balance $ 10,634,152 $ 11,140,700 $ 12,258,600 Total Revenue 16,602,996 19,556,584 21,297,021
Net Operating Expenditures 12,728,657 16,126,692 17,495,489 Operating Transfers 1,789,189 1,871,542 1,954,936
Total Operating Expenditures 14,517,846 17,998,234 19,450,425 Capital Transfers 1,578,601 3,447,577 4,015,419
Total Expenditures 16,096,447 21,445,811 23,465,844
Ending Fund Balance 11,140,700 9,251,473 10,089,777
General Fund Reserve (30% of Op. Exp.) 4,355,354 5,399,470 5,835,127 Economic Uncertainty Reserve (Target 20% Op. Exp.) $ 2,903,569 $ 3,599,647 $ 3,890,085 Total Reserves $ 7,258,923 $ 8,999,117 $ 9,725,212
Unassigned Fund Balance $ 3,881,777 $ 252,356 $ 364,565 Reserve as % of Total Op. Expenses 46% 50% 50%

GENERAL FUND (RESTRICTED & UNRESTRICTED BALANCES)

1. Fund balances for the Revised Budget 2021-22 reflect audited FY 2020-21 ending balance and budgeted revenues and expenditures.

2. Beginning Fund Balance reflects ending estimates that may not match ending 2021-22 revised budget Draft
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Conclusion
The FY 2022-23 General Fund total budget expenditures total $23.4 million and include a $4 million contribution to CIP. The FY 2022-23 budgets in the Special Revenue and Capital Funds, Enterprise Funds, Debt Service Funds, and Internal Service Funds total $30.9 million. The proposed 5-Year Capital Improvement Program (CIP) includes budgeted expenses of $16.2 million for FY 2022-23.

The City has benefited from the stable local economy and the economic growth throughout San Mateo County, Silicon Valley and the Bay Area. The pandemic and economic downturn which had significant impacts on City revenue continue to turn around and showing significant economic rebounding. While it is believed that the economic downturn is coming to an end, the City is taking a conservative approach to the budget and has reflected this in the financial outlook for the 2022- 23 Fiscal Year.

Some of the challenges that the City may face in the near future are:
• Federal and State budget uncertainty add a potential threat to local governments. Various capital projects are expected to be funded by grant awards and could be eliminated if those grant programs are paused or discontinued.
• Capital improvements that will need to be funded by the City where revenue sources may not be adequate to continue funding them.
• Increased contractual costs. The City uses outside contractors extensively, including for police services.
• Increased pension costs.
• The continued economic downturn puts pressure on the City ability to maintain fiscal stability to continue to weather the recession.

Fiscal sustainability remains a high priority for Half Moon Bay. To that end, staff continues to project revenues and expenditures in a conservative manner. The City has two General Fund Reserves, one created in FY 2019-20 as the Economic Uncertainty Reserve with a target amount of 20% of the operating budget in addition to the existing
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General Fund Reserve (30%).
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Actual  Actual  Revised  Recommended
2019‐20 2020‐21 2021‐22 2022‐23
GENERAL FUND 16,827,803                                        16,601,802                    19,556,584                    21,297,021

ENTERPRISE FUNDS
Sewer Operating                      6,402,723                      5,871,902                      6,709,625                      8,033,506 Sewer Capital 525,788                                                            992                          179,957                          213,816 ENTERPRISE FUNDS 6,928,511                                            5,872,894                      6,889,582                      8,247,322

SPECIAL REVENUE FUNDS
Storm Drain Operating 60,332                                                            (960)                              3,962                              2,500 Traffic Mitigation 249,927                                                      29,381                            86,726                            90,500 Library Operation 100,170                                                             (46)                                  191                                  100 Main Street Bridge 300,359                                                    208,118                           ‐ 163,180 Gas Tax                          535,255                          511,136                          513,091                          548,000 Streets and Roads 1,463,440                                            3,489,130                      2,350,324                          131,200 Measure A                          618,078                      3,363,282                          399,307                          428,500 Park/Facilities Development 1,725,497                                                480,135                      6,248,065                      5,078,400 Affordable Housing 471,576                                                       (8,233)                            25,385                            15,300 Public Facilities 586,657                                                    224,367                      1,554,169                      3,018,619 Police Grants 172,712                                                    155,182                          162,094                          162,800 Measure W                                   ‐ ‐                                                            423,468                          154,800 Lot Acquisition/Development                                  ‐                      2,687,693                            19,700                            18,800 Capital General                          660,298                      2,462,347                          302,896                      1,539,200 Drainage Capital                          196,299                          155,646                            40,695                          392,500 Library Capital                            43,391                            44,858                            29,771                              3,500 7,183,991                    13,802,035                    12,323,024                    11,584,719 Vehicle Replacement                            24,084                              7,777                          211,785                            56,167 Equipment Replacement                          439,017                          609,254                          520,778                          548,981 Risk Management                          723,666                          489,463                          652,130                          679,163 Pension Stabilization                      1,040,988                      1,024,428                      1,048,119                      1,156,095 INTERNAL SERVICE FUNDS                      2,227,754                      2,130,922                      2,432,813                      2,440,406 Judgement Bonds ‐ B                          143,939                                  337                                  ‐                                  ‐ DEBT SERVICE FUNDS                          143,939                                 337                                  ‐                                  ‐ 16,484,195                    21,806,187                    21,645,419                    22,272,447 TOTAL ALL FUNDS 33,311,998 $                  $                 38,407,989 $                 41,202,003 $                 43,569,468

SPECIAL REVENUE AND CAPITAL PROJECT FUNDS
Total Other Funds
City of Half Moon Bay
FY 2022‐23 Recommended Budget
Summary of Revenue & Transfers by Fund
FUND
‐
10 20
30 2019‐20 2020‐21 2021‐22 2022‐23
Millions
General Fund Enterprise Funds Special Revenue and Capital Project Funds Internal Service Funds Debt Service Funds Draft
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Actual  Actual  Revised  Recommended
2019‐20 2020‐21 2021‐22 2022‐23
GENERAL FUND 17,149,915                                      16,096,447                   21,445,811                   23,465,844

ENTERPRISE FUNDS
Sewer Operating                      5,952,968                      6,171,761                      6,689,339                      7,199,706 Sewer Capital 393,315                                                  880,184                      4,749,706                      3,861,465 ENTERPRISE FUNDS 6,346,283                                          7,051,945                   11,439,045                   11,061,171

SPECIAL REVENUE FUNDS
Storm Drain Operating 2                                      ‐                                  ‐                                  ‐ Traffic Mitigation 111,538                                                    15,720                           46,944                           35,888 Library Operation                            (6,810)                                 ‐                                 ‐                                 ‐ Main Street Bridge                         232,379                         242,452                         324,000                         489,300 Gas Tax                         295,162                         282,295                           95,000                           66,432 Streets and Roads                      1,438,357                      3,599,775                      3,448,839                      1,216,855 Measure A                           92,798                      2,894,535                         361,655                           68,585 Park/Facilities Development                      2,019,249                         250,413                      8,175,496                      7,393,900 Affordable Housing                         300,449                         200,000                                 ‐                                 ‐ Public Facilities                         792,756                           92,244                      1,912,035                      3,406,619 Police Grants                         110,092                           86,035                         200,000                         200,000 Measure W                                 ‐                                 ‐                                 ‐                                 ‐ Lot Acquisition/Development                                 ‐                         101,599                         270,000                         430,000 Capital General                      1,506,082                      2,243,541                      1,055,686                      2,586,900 Drainage Capital                         777,127                           45,117                         619,228                      1,217,159 Library Capital                                 ‐                                    (0)                                 ‐                                 ‐ 7,669,179                   10,053,726                   16,508,883                   17,111,638 ‐                                 ‐                                 ‐                                 ‐ Vehicle Replacement                         152,504                           84,465                         204,567                           44,067 Equipment Replacement                         392,778                         344,349                         507,484                         545,481 Risk Management                         387,928                         419,579                         950,341                         957,163 Pension Stabilization                         851,761                         959,543                      1,041,748                      1,152,095 INTERNAL SERVICE FUNDS                     1,784,972                     1,807,936                     2,704,141                     2,698,806 ‐                                 ‐                                 ‐                                 ‐ Judgement Bonds ‐ B                   11,783,851                           30,000                                 ‐                                 ‐ DEBT SERVICE FUNDS                   11,783,851                           30,000                                 ‐                                 ‐ ‐                                 ‐                                 ‐                                 ‐ 27,584,284                   18,943,607                   30,652,069                   30,871,615 TOTAL ALL FUNDS 44,734,200 $                 $                35,040,054 $                52,097,880 $                54,337,459 Total Other Funds
City of Half Moon Bay
FY 2022‐23 Recommended Budget
Summary of Expenditures & Transfers by Fund
FUND

SPECIAL REVENUE AND CAPITAL PROJECT FUNDS
‐
10 20
30 2019‐20 2020‐21 2021‐22 2022‐23
Millions
General Fund Enterprise Funds Special Revenue and Capital Project Funds Internal Service Funds Debt Service Funds Draft
182
Budget
Transfers In
2022‐23
GENERAL FUND (101)
From Sewer Operating (201) ‐ Admin Fee                    524,180 GENERAL FUND (101) 524,180
SEWER OPERATING (201)
From Sewer Capital (202) ‐ Support Operations                 3,005,962 SEWER OPERATING (201) 3,005,962
STREETS AND ROADS (123)
From General Fund (101) ‐ Capital Projects Funding                      40,000 STREETS AND ROADS (123) 40,000
PARKS/FACILITIES DEVELOPMENT (125)
From General Fund (101) ‐ Capital Projects Funding                    250,000 PARKS/FACILITIES DEVELOPMENT (125) 250,000
PUBLIC FACILITIES (127)
From General Fund (101) ‐ Capital Projects Funding                 1,819,619 From Main Street Bridge (127) ‐ Capital Projects Funding                    489,300 PUBLIC FACILITIES (127) 2,308,919
GENERAL CAPITAL FUND (151)
From General Fund (101) ‐ Capital Projects Funding                 1,530,800 GENERAL CAPITAL FUND (151)                 1,530,800
DRAINAGE CAPITAL (152)
From General Fund (101) ‐ Capital Projects Funding                    375,000 DRAINAGE CAPITAL (152)                    375,000
VEHICLE REPLACEMENT (301)
From General Fund (101)                      28,378
From Sewer Operating (201)                      15,314
From Streets & Roads (123)                            272 From Storm Drain (152)                            103
VEHICLE REPLACEMENT (301) 44,067
EQUIPMENT FUND (302)
From General Fund (101)                    351,272
From Sewer Operating (201)                    189,566
From Streets & Roads (123)                        3,369 From Storm Drain (152)                        1,274
EQUIPMENT FUND (302) 545,481
RISK MANAGEMENT FUND (303)
From General Fund (101)                    423,191
From Sewer Operating (201)                    228,378
From Streets & Roads (123)                        4,059 From Storm Drain (152)                        1,535
RISK MANAGEMENT FUND (303) 657,163
PENSION STABILIZATION FUND (304)
From General Fund (101) ‐ To fund unfunded liability payment                 1,152,095 PENSION STABILIZATION FUND (304) 1,152,095
GRAND TOTAL 10,433,667
City of Half Moon Bay
FY 2022‐23 Recommended Budget
Transfers/Allocations Summary
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Projected Revenues & Expenditures Revenue Projected
Fund Balance Trsfrs In & Trsfrs Out Over(Under)    Fund Balance 6/30/2022 Budget Budget Expenditures 6/30/2023

GENERAL FUND
101 General             12,258,600 $        21,297,021 $               23,465,844 $            (2,168,823) $             10,089,777

ENTERPRISE FUNDS
201 Sewer Operating                 (833,800)              8,033,506                    7,199,706                    833,800                                  0 202 Sewer Capital 1               5,971,000                 213,816                    3,861,465                (3,647,649)                   2,604,354 Total Enterprise Funds               5,137,200 $           8,247,322 $               11,061,171 $            (2,813,849)                  2,604,354

SPECIAL REVENUE FUNDS
111 Storm Drain Operating 354,200                                          ‐ 2,500                                                              2,500                      356,700 112 Traffic Mitigation 4,287,600                                   90,500                          35,888                       54,612                  4,342,212 113 Library Operation 111,100                                             ‐ 100                                                                 100                      111,200 121 Main Street Bridge                   489,300                               ‐                        489,300                   (489,300)                                   ‐ 122 Gas Tax               1,150,700                 548,000                          66,432                    481,568                  1,632,268 123 Streets and Roads               3,103,900                 131,200                    1,216,855                (1,085,655)                  2,018,245 124 Measure A               1,202,000                 428,500                          68,585                    359,915                  1,561,915 125 Park/Facilities Development               3,483,400              5,078,400                    7,393,900                (2,315,500)                  1,167,900 126 Affordable Housing               2,181,600                    15,300                                     ‐                       15,300                  2,196,900 127 Public Facilities               1,684,300              3,018,619                    3,406,619                   (388,000)                  1,296,300 128 Police Grants                   721,100                 162,800                        200,000                     (37,200)                      683,900 132 Measure W                   425,400                 154,800                                     ‐                    154,800                      580,200 133 Lot Acquisition/Development               2,175,000                    18,800                        430,000                   (411,200)                  1,763,800 151 Capital General               1,748,600              1,539,200                    2,586,900                (1,047,700)                      700,900 152 Drainage Capital               1,047,700                 392,500                    1,217,159                   (824,659)                      223,041 153 Library Capital                   446,400                      3,500                                     ‐                         3,500                      449,900 Total Special Revenue and Capital Funds             24,612,300 $        11,584,719 $               17,111,638 $            (5,526,919)                19,085,381 INTERNAL SERVICE FUNDS 2
301 Vehicle Replacement 273,200                                       56,167                          44,067                       12,100                      285,300 302 Equipment Replacement                   838,000                 548,981                        545,481                         3,500                      841,500 303 Risk Management               2,597,000                 679,163                        957,163                   (278,000)                   2,319,000 304 Retirement Stabilization Fund               1,470,000              1,156,095                    1,152,095                         4,000                   1,474,000 Total Internal Service Funds               5,178,200 $           2,440,406 $                 2,698,806 $                (258,400)                  4,919,800

DEBT SERVICE FUNDS
142 Judgment Obligation Bond ‐Series B                        ‐ 6,400                                ‐                                      ‐                                                             6,400 Total Debt Service Funds                       6,400 $                            ‐ $                                  ‐ $                              ‐                          6,400 Total Other Funds $          34,934,100 $        22,272,447 $               30,871,615 $            (8,599,168) $             26,615,935 Total All Funds $          47,192,700 $        43,569,468 $               54,337,459 $          (10,767,991) $             36,705,712 City of Half Moon Bay
FY 2022‐23 Recommended Budget
Fund Balances Summary
1 Final fund balance represents the portion of net assets that is unrestricted. This number does not include the non‐cash value of fixed assets, construction in progress and equity in the Sewer Authority Mid‐Coastside agency
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City of Half Moon Bay
“Gann” Appropriations Limit
Article XIIIB of the California State Constitution set an appropriations limit for governmental agencies. It became effective in Fiscal Year FY 1979-80 by passage of Proposition 4 (“The Gann Initiative”) and was modified by Proposition 111 in November 1989. With FY 1978-79 appropriations as the starting point, the limit is modified by the year-to-year changes both in per capita income and population, using the following alternative percentage changes for each:
(1) Income growth -
a. California per capita personal income, or
b. Nonresidential assessed valuation due to new construction in the city. (2) Population growth -
a. City of Half Moon Bay, or
b. County of San Mateo.

Article XIIIB also sets the guidelines as to what can be included in the appropriations limit, using “Proceeds of Taxes,” as defined in the Article, in the limit calculations. The City has remained well below the appropriations limit. It is unlikely that the limit will apply for fiscal year 2022-23.

APPROPRIATIONS LIMIT CALCULATION FY 2022-23
FY 2021-22 Appropriation Limit $ 35,356,264
Per Capita Personal Income Growth 7.55% 1.0755 factor
Population Change -.92% 0.9908 factor
Calculation of factor for FY 2022-23 1.0755 X .9908 = 1.0656054 FY 2022-23 Appropriation Limit $ 37,675,826
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Millions
Appropriations Limit History
Appropriations Limit
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GANN Appropriation
Placeholder
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Amount Amount
A LAST YEAR'S LIMIT 35,356,264

B ADJUSTMENT FACTOR

1. POPULATION 0.9908 STATE FINANCE

2. INFLATION 1.0755 STATE FINANCE

3. TOTAL ADJUSTMENT 1.0656054 (B1 x B2)
C ANNUAL ADJUSTMENT 2,319,562 (A x B3)

D OTHER ADJUSTMENTS -
E TOTAL ADJUSTMENTS 2,319,562 (C+D)
THIS YEAR'S LIMIT 37,675,826 (A+E)

CITY OF HALF MOON BAY
FY 2022-23 BUDGET
(GANN) APPROPRIATIONS LIMIT CALCULATIONS
Appropriations Limit Worksheet
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CITY OF HALF MOON BAY
Personnel Summary
Image Coming Soon
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189
Personnel Summary
City-Wide Organization Chart xx
Executive Management Team xx
Personnel Summary xx
Staffing Level Summary xx
Staffing Level by Service Area xx
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Community
City
Council
City
Committees
City
Commissions
City
Attorney
City
Manager
Deputy City
Manager
Public
Safety
Community
Development
Public
Works
Communications
& City Clerk
Administrative
Services
Law
Enforcement
Dispatch
Animal
Control
Planning
Building
Code
Enforcement
Housing
Engineering
Sewer
Capital Projects
Maintenance
Sustainability
Elections
Communications
Legislative
Affairs
Community &
Employee
Engagement
Contracts &
Records
Management
Commissions &
Committees
Financial
Services
Risk
Management
Human
Resources
Information
Technology
Recreation
Emergency
Preparedness
City of Half Moon Bay Organizational Chart
Economic &
Community
Vitality
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191
City of Half Moon Bay
ExecuƟve Team
City Manager
Bob Nisbet
CommunicaƟons/City Clerk
Director Jessica Blair
City AƩorney
Catherine Engberg
Public Works Director
John Doughty
Deputy City Manager
MaƩhew Chidester
Community Development
Director Jill Ekas
Captain Andrew Armando
San Mateo County Sheriff
AdministraƟve Services
Director Lisa Lopez
Draft
192
Full‐Time Equivalent Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Proposed
2022‐23
City Manager                 1.00                  1.00                  1.00                  1.00 Deputy City Manager                 1.00                  1.00                  1.00                  1.00 Administrative Services Director                 1.00                  1.00                  1.00                  1.00 Public Works Director                 1.00                  1.00                  1.00                  1.00 Community Development Director                 1.00                  1.00                  1.00                  1.00 City Clerk/Communications Director                 1.00                  1.00                  1.00                  1.00 Accounting Technician                 3.00                 2.00                  3.00                  3.00 Administrative Analyst                      ‐                         ‐                         ‐                    1.00 Administrative Assistant                 3.00                  3.00                  3.00                  3.00 Assistant City Clerk                      ‐                         ‐                    1.00                  1.00 Assistant Engineer                 1.00                  1.00                  1.00                  1.00 Assistant Planner                      ‐                         ‐                    1.00                  1.00 Associate Engineer                 1.00                  1.00                  1.00                  1.00 Associate Planner                 2.00                  2.00                  1.00                  1.00 City Engineer                 1.00                  1.00                  1.00                  1.00 Communications Specialist                 1.00                 1.00                  1.00                  1.00 Community Preservation Specialist                 1.00                  1.00                  1.00                  1.00 Community Services Manager1                      ‐                         ‐                         ‐                    1.00 Deputy City Clerk                 1.00                  1.00                       ‐                         ‐ Executive Assistant                 1.00                       ‐                    1.00                  1.00 Finance Manager                      ‐                         ‐                    1.00                  1.00 Housing Coordinator                      ‐                         ‐                    1.00                  1.00 Maintenance Assistant                      ‐                         ‐                    1.00                  1.00 Maintenance Worker (I/II)                 5.00                  4.00                  4.00                  4.00 Management Analyst                 4.00                  3.00                  4.00                  4.00 Permit Technician                 1.00                  1.00                  1.00                  1.00 Public Works Superintendent                 1.00                  1.00                  1.00                  1.00 Recreation Supervisor                 1.00                  1.00                  1.00                  1.00 Recreation Leader                 2.00                  1.00                  2.00                  2.00 Senior Accountant                 1.00                  1.00                       ‐                         ‐ Senior Maintenance Worker                 2.00                 2.00                  2.00                  2.00 Senior Management Analyst                 3.00                  3.00                  3.00                  3.00 Senior Planner                 1.00                  1.00                  1.00                  1.00 Total Regular Fulltime Employees               42.00                37.00                43.00                45.00 FTE Count does not include limited term employees or council members 1 ‐ Full job description and title pending at budget adoption date City of Half Moon Bay
FY 2022‐23 Budget
Personnel Summary
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193
Fund ‐ Function Actual
2019‐20
Actual
2020‐21
Revised
Budget
2021‐22
Proposed
2022‐23

GENERAL FUND
General Administration                 13.70                 11.45                 14.05                       14.15 Community Development
Administration                   1.40                   2.40                   2.55                         2.55 Planning Services                   3.80                   3.25                   3.65                         3.65 Building and Code Enforcement                   1.55                   1.05                   1.50                         1.50 Total Community Development                   6.75                   6.70                   7.70                         7.70 Public Works
Administration                   2.40                   2.65                   2.80                         2.80 Engineering                   2.15                   1.35                   1.90                         1.90 Facilities Maintenance                   5.55                   5.25                   6.80                         6.80 Total Public Works                 10.10                   9.25                 11.50                       11.50 Recreation Services
Parks/Recreation                   3.55                   2.30                   3.20                         3.20 Community Services                   1.35                   1.60                   1.30                         3.20 Total Recreation Services                   4.90                   3.90                   4.50                         6.40 Total FTE by General Fund 35.45                                  31.30                 37.75                       39.75

OTHER FUNDS
201 ‐ Sewer Operating                   2.00                   2.55                   2.50                         2.50 123 ‐ Streets & Roads                   1.45                   1.45                   0.80                         0.80 124 ‐ Measure A                   0.70                   0.75                   0.50                         0.50 152 ‐ Storm Drains                   0.35                   0.40                   0.25                         0.25 125 ‐ Parks Facilities                   0.15                   0.05                     ‐                           ‐ 127 ‐ Public Facilities                   0.80                     ‐ ‐                                               ‐ 302 ‐ Equipment Fund                   0.15                   0.05                   0.55                         0.55 303 ‐ Risk Management                   0.95                   0.45                   0.65                         0.65 Total By Other Funds 6.55                                      5.70                   5.25                         5.25 City Council                    5.00                     5.00                     5.00                           5.00 Total Staffing Levels                 47.00                 42.00                  48.00                         50.00 1 ‐ Full job description and title pending at budget adoption date City of Half Moon Bay
FY 2022‐23 Budget
Staffing Level Summary
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194
Division FY 2020‐21 Net Change Revised
FY 2021‐22 Net Change ProposedFY 2022‐23
City Council              ‐           5.00              ‐                           5.00 5.00 City Manager's Office             2.40         1.20              ‐           3.60                3.60 City Clerk              ‐           1.55              ‐           1.55                1.55 Communications              ‐           1.40              ‐           1.40                1.40 Finance             4.35         0.30             4.65         0.10                4.75 Human Resources             0.25         1.15             1.40       (0.10)                1.30 Administrative Services             1.00       (0.25)              ‐           0.75                0.75 Information Technology             0.05         0.50              ‐           0.55                0.55 General Liability             0.45         0.20              ‐           0.65                0.65 Emergency Services             0.50         0.20             0.70         0.10                0.80 Public Works ‐ Administration             2.65         0.15              ‐           2.80                2.80 Engineering             1.35         0.55              ‐           1.90                1.90 Maintenance             5.25         1.55              ‐           6.80                6.80 Parks and Recreation             2.30         0.90              ‐           3.20                3.20 Community Services             1.60       (0.30)             1.30         1.90                3.20 Planning Services             3.25         0.40              ‐           3.65                3.65 Building and Code Enforcement             1.05         0.45             1.50 ‐                          1.50 Community Development ‐ Administration             2.40         0.15              ‐           2.55                2.55 Sewer Operations             2.55       (0.05)              ‐           2.50                2.50 Other             2.65       (1.10)              ‐           1.55                1.55 Total FTE 42.00                    6.00           48.00 2.00 50.00 Changes in Staffing
City of Half Moon Bay
FY 2022‐23 Budget
Staffing Level by Service Area
The FY2022‐23 recommended budget includes 2 additional FTEs.  The positions are shown below:

Community Services Manager
Administrative Analyst
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CITY OF HALF MOON BAY
General Fund
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General Fund
General Fund Overview xx
General Fund Summary xx
General Fund Revenue Detail xx
General Fund Revenue Charts xx
Property Tax Revenue Charts xx
Sales Tax Revenue Charts xx
General Fund Expenditures xx
General Fund Expenditures by Type xx
General Fund Expenditures by Dept. xx
General Fund Projections xx
General Fund Statement xx
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General Fund Overview
The General Fund is the primary operating fund of the City and is used to account for day-to-day activities. It receives unrestricted revenue and provides City general administrative services, public safety, and land development – related activities.

All general tax revenue and other revenues that are not allocated by law or contractual agreement to other funds are accounted for in this fund. The General Fund is an unrestricted fund, and its resources can be used for any City service or governmental purpose.

The City’s major revenue sources for the General Fund are transient occupancy (hotel) taxes, sales and property taxes, charges for services and other revenue.

The General Fund provides for the cost of operating City government and includes the City Attorney, City Clerk, City Council, City Manager, Finance, Risk Management, Human Resources, Information Technology, Emergency Services Operations, Public Safety, Planning Services, Building and Code Enforcement, Engineering, Facilities Maintenance, and Recreation Services. In addition, General Fund expenditures include capital projects and reserve funding.

The City provides services to the community using a combination of City staff, programs, and contract services. The Community Development, Public Works, Engineering, Building, Administrative Services, Communications/City Clerk and City Manager departments consist primarily of City staff. This work is supplemented by contracts with other government agencies and service providers that provide the City with Animal Control, Building Inspection, Building Permit Processing including plan check, Dispatch, Engineering, Information Technology, Janitorial, Law Enforcement, Legal Services, Library Operations, and limited Landscaping Maintenance services.

BUDGET OVERVIEW
The General Fund budget for FY 2022-23 is $21.3 million in revenue and $19.4 million in operating expenditures, excluding capital and non-operating transfers. This will generate an initial operational surplus of $1.9 million in the FY 2022-23 General Fund budget. The City continues to invest back to the community by funding it’s Capital Improvement Program, including contributions from the General Fund. The FY 2022-23 General Fund contribution to the Capital Program is $4 million. The reserves are projected to be $9.7 million on June 30, 2023, representing an increase of $726 thousand from June 30, 2022.

GENERAL FUND REVENUES
Unlike appropriations that can be established at the direction of the City, many key revenue sources are controlled by external forces to the City. For instance, property tax revenue varies with real estate values, and development-related revenue is affected by the volume and type of building permits and plan check requests. Sales tax and transient occupancy tax (TOT) revenues are subject to local and national economic cycles, businesses’ decision to locate in the community and travel activity of businesses and tourists.

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Three sources make up almost 72% of the revenue in the General Fund: Transient Occupancy (Hotel) Tax, Property Tax and Sales Tax. These revenues are projected to increase by 13% over the FY 2021-22 budget. All other revenues with some exceptions are estimated to stay stagnant.

General Fund revenue overall is projected to come in higher than the current year’s budget by

8.9%, as the economy continues to improve following the recession caused by the pandemic.

Key general fund revenue categories are further described below:

Transient Occupancy Taxes (TOT)
Transient occupancy taxes are assessed on The City’s thirteen hotels, motels, bed & breakfast establishments, and three campgrounds at a rate of 15%, generating the City’s largest source of revenue. Prior to 2020, TOT revenue had increased at a healthy rate for a significant amount each year. Following the start of the pandemic however, TOT revenue has increased significantly since FY 2021-22. Occupancy has fallen to nearzero but is anticipated to increase as stay at home orders are lifted.

Property tax
Property tax is the City’s second largest revenue source. Property tax revenue is collected and distributed by the County of San Mateo based on applying the constitutionally limited tax rate of 1% to the assessed value of certain secured and unsecured properties as determined by the County Assessor.

Where Do Property Taxes Go? *
*Based on the City’s largest Tax Rate Area (TRA)
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The City considers the historical rate of changes and potential economic conditions when forecasting property tax revenue. Property tax revenue shows increases based on figures from the San Mateo County Assessor’s Office.

This revenue includes the distributions of excess Educational Revenue Augmentation Fund (ERAF) at 50% of the historic distribution level due to the uncertain nature of these revenues.

Sales and Use Tax
The Sales Tax is currently the City’s third largest revenue source. Sales tax is collected by the State Board of Equalization against tangible items. The local portion is distributed to cities and counties based on the location of the sale. The City of Half Moon Bay receives 1¢ on every $1 purchase as listed in the chart below.

Where Do Sales Taxes Go?
2022 San Mateo County Sales Tax Rate = 9.375%
Each $1 purchase = $0.09375%
Most of Half Moon Bay Sales Tax is generated from three major economic sectors, listed below.

Approximately 73% of the City’s total sales tax is generated from twenty-five businesses.  Food (grocery, restaurants) – 45%
 General Retail – 16%
 Transportation (car sales, gas station) – 22%
 Other – 17%
The City’s sales tax revenues are expected to increase steadily as COVID-19 related restrictions ease.

Other Taxes
Other taxes include franchise fees assessed on franchise agreements with utility companies, and Draft
201

business license registration taxes that are being assessed on all businesses operating within the City limits.

Charges for Services
Cost of Services fees are revised on an annual basis based on a comprehensive review of actual cost. This revenue source is approximately 3.5% of General Fund revenue.

The City’s current user fees and deposit amounts were established through a fee study in 2017, prepared in accordance with State law, that was approved and accepted by City Council.

Annually, Finance staff will provide an update to City Council. The purpose of this update is to affirm and update certain Administrative, Building, Public Works, Planning, and Public Safety fees. Most of the fees were set at or about 100-percent cost recovery.

Other Revenues
This revenue category includes San Mateo County reimbursement relating to unfunded pension liability for safety personnel that the City pays directly to CalPERS, golf fees per the development agreement with Ocean Colony and parking fees.

GENERAL FUND EXPENDITURES
The FY 2022-23 General Fund total expenditure budget is $23.4 million, which includes $19.4 million in operating expenditures and $4 million in capital transfers to fund the City’s FY 2022-23 Capital Improvement Program. This is an increase of $2 million or 9.4% of the revised FY 2021-22 budget.

TRANSFERS FOR CAPITAL PROJECT FUNDS
The General Fund makes contributions to the City’s Capital Improvement Plan (CIP) that is budgeted in various Special Revenues and Capital Funds.

Staff always strives to identify probable funding sources for projects and explore outside funding sources whenever possible. These include Federal and State Grants, County contributions, Gas Tax, and various other tax measures. When no external sources of funding can be identified, General Funds are allocated to help cover the cost of projects.

The proposed 5-Year Capital Improvement Program (CIP) has a total FY 2022-23 budget of $16.2 million, which includes a $4 million contribution from the General Fund. Additional information on the CIP can be found in the FY 2022-27 CIP Budget document.

RESERVES AND ASSIGNED FUNDS
The City’s Fund Balance Policy identifies fund balances (or reserves) as falling into the following categories: Restricted, Committed, Assigned or Unassigned. In accordance with GASB Statement No. 54 requirements and the City policy, the Council established the following designations for General Fund Committed Fund Balances:

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 Operating Contingency Reserve of 30% of annual expenditures ($5.8 million)  Economic Uncertainty Reserve of 20% of annual expenditure ($3.9 million) The General Fund balance components are detailed in the table below. The City will have a balanced budget for FY 2022-23 with $364 thousand as unassigned fund balance.

The General Fund Reserve provides funds for the City to cover unexpected and sharp drops in revenues due to the economy, emergency events and other unanticipated expenditures and events. The City’s policy requires this reserve to be 30% of budgeted annual operating expenditures. In calculating the FY 2022-23 general fund reserves, staff included operating transfers in the expenditures figures and set aside $5.8 million for this purpose.

The assigned Economic Uncertainty Reserve is new as of FY 2019-20 and was created in preparation for the next recession. The reserve requires 20% of budgeted annual operating expenditures. The FY 2022-23 budget provides $3.9 million for this reserve.

Altogether, General Fund projected fund balance of $9.7 million represents 50% (vs 50% in the FY 2021-22 budget) of operating General Fund expenditures.

Designations Actual
2020-21
Revised Budget
2021-221
Recommended
Budget 2022-232
Beginning Fund Balance $ 10,634,152 $ 11,140,700 $ 12,258,600 Total Revenue 16,602,996 19,556,584 21,297,021
Net Operating Expenditures 12,728,657 16,126,692 17,495,489 Operating Transfers 1,789,189 1,871,542 1,954,936
Total Operating Expenditures 14,517,846 17,998,234 19,450,425 Capital Transfers 1,578,601 3,447,577 4,015,419
Total Expenditures 16,096,447 21,445,811 23,465,844
Ending Fund Balance 11,140,700 9,251,473 10,089,777
General Fund Reserve (30% of Op. Exp.) 4,355,354 5,399,470 5,835,127 Economic Uncertainty Reserve (Target 20% Op. Exp.) $ 2,903,569 $ 3,599,647 $ 3,890,085 Total Reserves $ 7,258,923 $ 8,999,117 $ 9,725,212
Unassigned Fund Balance $ 3,881,777 $ 252,356 $ 364,565 Reserve as % of Total Op. Expenses 46% 50% 50%

GENERAL FUND (RESTRICTED & UNRESTRICTED BALANCES)

1. Fund balances for the Revised Budget 2021-22 reflect audited FY 2020-21 ending balance and budgeted revenues and expenditures.

2. Beginning Fund Balance reflects ending estimates that may not match ending 2021-22 revised budget Draft
203
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204
Actual Revised Budget Recommended
2020‐21 2021‐22 2022‐23
Revenue   $       16,602,996 19,556,584 21,297,021 $
Operating Expenditures         (12,728,657)         (16,126,692)         (17,495,489) General Fund Transfers Out‐ Operating           (1,789,189)           (1,871,542)           (1,954,936) 2,085,149            1,558,350            1,846,596
General Fund Transfers Out ‐ Capital (CIP)           (1,578,601) (3,447,577) (4,015,419) Net Change to General Fund 506,548                           (1,889,227)           (2,168,823) Beginning Total Fund Balance 10,634,152                    11,140,700          12,258,600 Ending Fund Balance 11,140,700                      9,251,473          10,089,777 Reserves
General Fund Reserve            4,355,354            5,399,470            5,835,127 Economic Uncertainty Reserve            2,903,569            3,599,647            3,890,085 Unassigned Fund Balance 3,881,777 $          $            252,356 $            364,565 Excess Revenue Over/(Under) Expenditures
Assigned Reserves for FY 2022‐23
Beginning in FY 2019‐20, the City created an Economic Uncertainty Reserve targeted at 20% of budgeted annual operating expenditures. In addition with the operating reserve, general fund reserves are funded at 50% of total operating expenditures for FY2022‐23 at $9.7 million.

City of Half Moon Bay
FY 2022‐23 Recommended Budget
General Fund Summary
Excess of Operating Revenue Over/(Under) Expenditures
There is an operational surplus of $1.8 million but a total deficit in the FY 2022‐23 budget of $2.1 million. The deficit is mitigated from use of the unassigned fund balance to support reinvestment into capital projects.

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Actual Actual Revised Recommended
Description 2019‐20 2020‐21 2021‐22 2022‐23
Taxes
Transient Occupancy Tax                5,291,821                 4,817,532           7,200,000                 8,752,000 Property Tax                3,674,590                 3,586,408           3,349,286                 3,436,620 Sales & Use Tax                3,104,373                 2,763,035           2,983,400                 3,058,600 Franchise Fees and Tax                   825,066                     707,353               838,900                     836,800 Business License Tax                   291,790                     301,754               314,000                     301,000 Total Taxes             13,187,642               12,176,082         14,685,586               16,385,020 Intergovernmental
Relief Grants                            ‐                              ‐           1,546,805                 1,546,805 Dept of Motor Vehicles Fees                        9,997                         9,117                        ‐                       14,220 State Reimbursements (POST/SB90)                            ‐                              ‐                        ‐                              ‐ Total Intergovernmental                        9,997                         9,117           1,546,805                 1,561,025 Charges for Services
Building Permits                   308,704                     374,180               200,000                     200,000 Engineering & Planning Fees                   593,047                     324,151               248,658                     300,488 Police Services                   159,631                     112,651               108,634                       82,885 Recreation Services                   119,372                       88,028               155,013                     169,000 Other                            ‐                              ‐                        ‐                              ‐ Total Charges for Services               1,180,755                    899,011              712,305                    752,373 Other Revenue
Grants                     45,000                     169,487                 25,000                         5,000 Other Fees                   252,556                       17,403                 88,590                     391,996 Golf Fees                   328,864                     546,415               546,000                     550,000 Interest                   197,765                     106,322                 87,700                       88,071 Parking                   165,569                     351,150               350,000                     379,158 County Credit Reimbursement                   556,649                 1,797,892           1,003,202                     660,198 Allocation In from Other Funds                   903,006                     528,923               511,395                     524,180 Total Other Revenues               2,449,409                 3,517,592           2,611,887                 2,598,603 Ongoing General Fund Revenue1             16,827,803               16,601,802         17,619,194               19,750,216 Total General Fund Revenue 16,827,803 $           $           16,601,802 $     19,556,584 $           21,297,021 City of Half Moon Bay
FY 2022‐23 Budget
General Fund Revenue Detail
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206
Transient Occupancy Tax (TOT) $8,752,000
Sales Tax 3,058,600
Property Tax 3,436,620
Other Revenue 2,598,603
Other Taxes 1,137,800
Charges for Services 752,373
Inter‐Governmental 1,561,025
Total FY 2022‐23 Budget $             21,297,021
City of Half Moon Bay
FY 2022‐23 Budget
General Fund Revenue
The City of Half Moon Bay's three primary revenue sources are Transient Occupancy Tax (TOT), Property Tax, and Sales Tax, which comprise 72% of total General Fund Revenue.

Transient
Occupancy Tax
(TOT)
41%
Sales Tax
15%
Property Tax
16%
Other Revenue
12%
Other Taxes
5%
Charges for
Services
4%
Inter‐
Governmental
7%
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Property Tax Revenue
FY 2022‐23 Budget
City of Half Moon Bay
The City of Half Moon Bay is a low property tax city with a 7% share of Property Taxes.

Schools
42%
County
32%
Fire
19% City
7% Other
0%
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Food (grocery, restaurants) 45%
General Retail 16%
Transportation (car sales, gas stations) 22%
Other 17%
100%
Half Moon Bay Sales Tax is generated primarily from three sectors. Approximately 73.3% of total Sales Tax is generated from twenty‐five businesses.

City of Half Moon Bay
FY 2022‐23 Budget
Sales Tax Revenue (9.375%)
State

6.00¢
San Mateo
County

1.375¢
Measure A and
Measure W

1.00¢
Half Moon Bay

1.00¢
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209
Public Safety 4,819,699 $
Public Works 3,793,983 $
Capital Improvements (CIP) 4,015,419 $
Administrative Services 1,407,389 $
City Managers Office and Emergency Services 1,710,178 $ Recreation and Community Vitality 1,940,553 $
Community Development 2,137,393 $
Other Operating Transfers 1,152,095 $
City Clerk/Communications $            1,131,796
Debt Service $               704,410
City Attorney $               404,250
City Council $               248,677
Total FY 2022‐23 Budget $         23,465,844
City of Half Moon Bay
FY 2022‐23 Budget
General Fund Expenditures
Percent of General Fund Expenditures
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Expenditures 2019‐20 Actual 2020‐21 Actual 2021‐22 Revised 2022‐23 Recommended $ Change % Change
Salaries & Benefits 4,895,579 $          $         4,903,424 $         5,694,307 $         6,675,818 $             981,511 17.2% Materials & Supplies $             364,239 $             283,391 $             437,639 $             557,339 $             119,700 27.4% Contract Services 7,811,790 $          $         7,541,842 $         8,623,060 $         9,557,922 $             934,862 10.8% Transfers / Allocations Out 3,505,621 $          $         3,367,790 $         5,319,119 $         5,970,355 $             651,236 12.2% Debt Service 572,686 $              ‐ $                           $         1,371,686 $             704,410 $            ‐ (667,276) 48.6% Total General Fund Exp. 17,149,915 $        $       16,096,447 $       21,445,811 $       23,465,844 $         2,020,033 9.4% City of Half Moon Bay
FY 2022‐23 Budget
General Fund Expenditures Trend ‐ By Type
Salaries and Benefits
Through a combination of reinstated positions previously frozen, the addition of two FTEs, and merit increases, the City anticipates an increase of $981 K.

Contract Services
Increases to this category include rising costs in these existing expenses: sheriff services, coastal clean‐up, engineering/planning services. New costs in this category include a CARES program funding, a feasibility study and community lending analysis.

Transfers
Transfers include Capital Improvement Program (CIP) funding, debt service, and reserve funding.

Debt Service
In FY 2021‐22, the City made a double payment to the library loan resulting in a total debt service payment of $1.3 million.

In FY 2022‐23 the City returns to the original debt schedule resulting in $667 K relieved from the budget. $0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Debt Service Millions
2019‐20 Actual 2020‐21 Actual 2021‐22 Revised 2022‐23 Recommended Draft
211
Relief Grants
Expenditures 2019‐20 Actual 2020‐21 Actual 2021‐22 Revised 2022‐23 Recommended $ Change % Change
Public Safety 3,977,736                        4,294,162            4,415,492                     4,819,699 $                 404,207 9.2% Public Works 3,326,536                        2,728,471            3,700,707                     3,793,983 $                   93,276 2.5% Administrative Services 1,344,104                        1,059,502            1,300,347                     1,407,389 $                 107,042 8.2% City Managers Office 953,123                                888,697            1,394,157                     1,710,178 $                 316,021 22.7% Community Development 1,601,384                        1,426,739            1,941,025                     2,137,393 $                 196,369 10.1% Recreation & Community Vitality 1,018,568                            875,708            1,189,171                     1,940,553 $                 751,382 63.2% City Clerk/Communications 875,988                                731,953            1,024,192                     1,131,796 $                 107,604 10.5% City Attorney                357,900                496,329                385,000                        404,250 $                   19,250 5.0% City Council                182,160                152,325                234,710                        248,677 $                   13,968 6.0% Departmental Expense Subtotal          13,637,498          12,653,885          15,584,800                  17,593,920 $             2,009,120 12.9% Other Operating Transfers            1,698,981            1,000,000            1,041,748                     1,152,095 $                 110,347 10.6% Debt Service/Non‐Departmental                572,686                226,305            1,371,686                        704,410 $               (667,276) ‐48.6% Operating Expenses Subtotal          15,909,165          13,880,190          17,998,234                  19,450,425 $             1,452,191 8.1% Capital Improvements (CIP)            1,240,751            1,578,601            3,447,577                     4,015,419 $                 567,842 16.5% Total General Fund Exp. 17,149,916              15,458,791       21,445,811               23,465,844 $          2,020,033 9.4% City of Half Moon Bay
FY 2022‐23 Budget
General Fund Expenditures Trend ‐ By Department
Public Safety
This department does not include any programmatic changes and is experiencing rising costs in existing contracts such as patrol services and dispatch.

City Manager's Office
The increase in this department is for the support of the new CARES program, grants and potentially annexation.

Recreation & Community Services
With the restructure and creation of the Economic and Community Vitality division, this increase is primarily from the addition of two FTEs, increases to the CSFA grants, and a feasibility study.

Debt Service
In FY 2021‐22, the City made a double payment to the library loan resulting in a total debt service payment of $1.3 million. In FY 2022‐23 the City returns to the original debt schedule resulting in $667 K relieved from the budget. $0
$1
$2
$3
$4
$5
$6
2019‐20 Actual 2020‐21 Actual 2021‐22 Revised 2022‐23 Recommended Draft
212
2021‐22
Revised

REVENUES
Transient Occupancy Tax                 7,200,000                  8,752,000 21.6% 9,189,600                   5.0% 9,373,392                   2.0% 9,560,860                   2.0% 9,752,077                   2.0% 9,947,119                   2.0% Property Taxes                 3,349,286                  3,436,620 2.6% 3,530,550                   2.7% 3,631,930                   2.9% 3,736,351                   2.9% 3,843,904                   2.9% 3,954,683                   2.9% Sales & Use Tax                 2,983,400                  3,058,600 2.5% 3,179,900                   4.0% 3,292,000                   3.5% 3,397,100                   3.2% 3,495,100                   2.9% 3,586,000                   2.6% Total Other Taxes                 1,152,900                  1,137,800 ‐1.3% 1,137,800                   0.0% 1,159,688                   1.9% 1,182,043                   1.9% 1,204,874                   1.9% 1,228,194                   1.9% Other Revenue                 2,933,608                  3,365,196 14.7% 3,101,945                   ‐7.8% 3,146,310                   1.4% 3,191,596                   1.4% 3,237,825                   1.4% 3,285,018                   1.5% One Time Revenue                 1,937,390                  1,546,805 ‐20.2%                               ‐ ‐ 100.0%                              ‐                              ‐                              ‐                              ‐ TOTAL REVENUE 19,556,584                             21,297,021 8.9% 20,139,795                ‐5.4% 20,603,320                2.3% 21,067,950                2.3% 21,533,780                2.2% 22,001,013                2.2%

EXPENDITURES
Salaries & Benefits                 5,694,307                  6,675,818 17.2% 6,809,583                   2.0% 7,009,511                   2.9% 7,198,175                   2.7% 7,377,258                   2.5% 7,561,715                   2.5% Materials & Supplies                    437,639                     557,339 27.4% 561,812                      0.8% 577,012                      2.7% 592,653                      2.7% 608,745                      2.7% 625,304                      2.7% Contract Services                 8,623,060                  9,557,922 10.8% 9,476,661                   ‐0.9% 9,828,505                   3.7% 10,197,941                3.8% 10,586,196                3.8% 10,994,636                3.9% Debt Service                 1,371,686                      ‐ 704,410 48.6% 736,610                      4.6% 736,352                      0.0% 736,088                      0.0% 735,816                      0.0% 735,538                      0.0% Operating Transfers
Internal Service Funds                    829,794                     802,841 ‐3.2% 874,656                      8.9% 901,526                      3.1% 929,577                      3.1% 958,535                      3.1% 988,788                      3.2% Pension                 1,041,748                  1,152,095 10.6% 1,229,000                   6.7% 1,268,000                   3.2% 1,294,000                   2.1% 1,298,400                   0.3% 1,313,400                   1.2% Capital Transfers                 3,447,577                  4,015,419 16.5% 1,000,000                   ‐75.1% 1,000,000                   0.0% 1,000,000                   0.0% 1,000,000                   0.0% 1,000,000                   0.0% TOTAL EXPENDITURES 21,445,811                             23,465,844 9.4% 20,688,322                ‐12% 21,320,907                3.1% 21,948,433                2.9% 22,564,951                2.8% 23,219,382                2.9% Structural Surplus (Deficit)               (1,889,227)                (2,168,823)                   (548,527)                   (717,587)                   (880,483)                (1,031,171)                (1,218,369) Beginning Fund Balance               11,140,700               12,258,600               10,089,777                  9,541,250                  8,823,663                  7,943,180                  6,912,009 Ending Fund Balance                 9,251,473               10,089,777                  9,541,250                  8,823,663                  7,943,180                  6,912,009                  5,693,641 Reserves                 8,999,117                  9,725,212                  9,541,250                  8,823,663                  7,943,180                  6,912,009                  5,693,641 Assumptions
Transient Occupancy Tax is expected to continue its strong trend upwards through FY 2023‐24. Thereafter it is estimated to stabilize at an average growth rate of 2% annually.

Operating Transfers ‐ Internal Service Funds assumes 5% of the total of all other operating expenditures Operating Transfers‐Pension is based on the UAAL estimates as provided by CalPERS Capital is based on the 5‐year Capital Improvement Program (CIP) and the estimated general fund contribution FY 2022‐23 to FY 2027‐28
Property Tax is  projected to increase by 2.6% in FY2022‐23.

Sales Tax is projected to increase by 2.6% in FY2022‐23 the increase by an average of 3.0%  each year based on information provided by the City's external sales tax consultant.

City of Half Moon Bay
General Fund Projections
2022‐23
Recommended
2023‐24
Forecast
2024‐25
Forecast
2025‐26
Forecast
2026‐27
Forecast
2027‐28
Forecast
8,999 9,725 9,541 8,824
7,943
6,912
5,694
252
365
‐
‐
‐
‐
‐
2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28

ENDING GENERAL FUND BALANCES PROJECTION
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GENERAL FUND
FUND 101
ACTUAL
2019‐20
ACTUAL
2020‐21

REVISED BUDGET
2021‐22

RECOMMENDED
2022‐23

REVENUES
Taxes 13,187,642                      12,176,082           14,685,586             16,385,020 Intergovernmental 9,997                                          9,117             1,546,805               1,561,025 Charges for Services 1,180,755                             899,011                712,305                  752,373 Other Revenue 1,546,403                          2,988,669             2,100,492               2,074,423 TOTAL REVENUE 15,924,797                      16,072,879           19,045,189             20,772,841

EXPENDITURES
Salaries & Benefits 4,895,579                          4,903,424             5,694,307               6,675,818 Materials & Supplies 364,239                                283,391                437,639                  557,339 Contract Services             7,811,790             7,541,842             8,623,060               9,557,922 Debt Service                572,686                         ‐             1,371,686                  704,410 Miscellaneous                         ‐                         ‐                         ‐                           ‐ TOTAL EXPENDITURES 13,644,294                      12,728,657           16,126,692             17,495,489

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From Sewer Fund                903,006                528,923                511,395                  524,180 To Capital Projects            (1,240,751)            (1,578,601)            (3,447,577)              (4,015,419) To Other Funds            (2,264,870)            (1,789,189)            (1,871,542)              (1,954,936) NET TRANSFERS (2,602,615)                        (2,838,867)            (4,807,724)              (5,446,175) (322,113)                505,355            (1,889,227)              (2,168,823) BEGINNING FUND BALANCE 1           10,958,764           10,636,651           11,142,006             12,258,600 ENDING FUND BALANCE 10,636,651                      11,142,006             9,252,779             10,089,777

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022‐23 based on updated estimates and may not match budgeted estimates for FY 2021‐22 ending balance.

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CITY OF HALF MOON BAY
Department Budgets
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Department Budgets
City Council xx
• City Council Narrative xxx
• City Council Budget xxx
City Manager xxx
• City Manager’s Narrative xxx
• Performance Measures xxx
• Administration Budget xxx
• Recreation Services Budget xxx
• Community Services Budget xxx
• Emergency Services Budget xxx
City Attorney xxx
• City Attorney Narrative xxx
• City Attorney Budget xxx
City Clerk & Communications xxx
• Clerk & Comm Narrative xxx
• Performance Measures xxx
• City Clerk Budget xxx
• Communications Budget xxx
Administrative Services xxx
• Admin Services Narrative xxx
• Performance Measures xxx
• Administration Budget xxx
• Finance Budget xxx
• Human Resources Budget xxx
• Information Technology Budget xxx
• Risk Management Budget xxx
Public Safety xxx
• Public Safety Narrative xxx
• Public Safety Budget xxx
Public Works xxx
• Public Works Narrative xxx
• Performance Measures xxx
• Administration Budget xxx
• Engineering Budget xxx
• Maintenance Budget xxx
Community Development xxx
• Comm Development Narrative xxx
• Performance Measures xxx
• Administration Budget xxx
• Planning Services Budget xxx
• Building & Code Enforc. Budget xxx
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CITY OF HALF MOON BAY
City Council
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City Council
Core Services
The core services of the City Council of Half Moon Bay are to create policy related to providing high-quality public services and facilities in a fiscally sustainable, responsive, and friendly manner, which fosters a safe and healthy community in a semi-rural setting.

Description
The City Council is the governing body of the City. It provides community leadership, establishes policies that reflect the needs, wishes, and priorities of the community of Half Moon Bay, and enacts laws and adopts resolutions and ordinances. The Mayor and City Council represent the City on various local, regional, and state policy committees and commissions. The City Council also reviews proposed State of California legislation and provides formal input into the legislative process. The City Council meets the first and third Tuesday of each month in formal public session and occasionally in additional special meetings and study sessions.

Service Priorities
• Deliberate on all matters brought before the City Council at its public meetings, make decisions relative to those matters, while striving to meet the Elements of the Strategic Plan.
• Establish priorities for the City of Half Moon Bay.
• Allocate financial resources necessary to meet priorities and goals to provide community services.

Staffing
The Council is composed of five members who are elected by district on a non-partisan basis for four-year staggered terms. The Mayor is currently appointed annually from among the elected councilmembers.

Service Level Changes
The current level of service will be maintained.

Budget Highlights / Summary of Changes
The City Council budget consists of funding for the five independently elected Councilmembers as well as travel and miscellaneous expenses to carry out the work of the City.

Fiscal Year 2021-2022 Accomplishments
• Completed 2021 Redistricting process and adopted new District Map 503b. • Provided grants and support to community organizations providing services to the community related to the COVID-19 Pandemic.
• Received $4,750,000 in funding from the State for the Carter Park Improvements Project.

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• Adopted a building electrification ordinance.
• Conducted a Public Safety Survey and published report. • Launched the Crisis Assistance Response and Evaluation Services (CARES) Pilot Program in collaboration with El Centro De Libertad and the County of San Mateo. • Established a Beach Volleyball Court Pilot Program at the north end of Poplar Beach. • Hosted a ribbon cutting ceremony for the Highway 1 South Traffic Safety Project. • Established the Coastside Recovery Initiative, a collaborative effort with the Coastside Chamber of Commerce and San Mateo County dedicated to economic recovery on the Coastside.
• Adopted a short-term rental ordinance an updated accessory dwelling unit ordinance. • Issued an RFP for affordable housing on the 555 Kelly site. • Establish HMB-Coastside Age Friendly Community (AFC) coalition and develop communications for older adult residents.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Complete construction on Carter Park.
• Continue efforts on affordable housing strategy, including pursuing opportunities for housing development, conducting Town Center planning, and updating elements of the General Plan (Healthy Communities and Public Safety, Infrastructure and Environment). • Continue efforts related to law enforcement and policing, including work with the public safety subcommittee and holding community meetings (Healthy Communities and Public Safety).
• Continue to redevelop and update the City’s Emergency Operations Plan and establish a Crisis Communications Plan (Healthy Communities and Public Safety). • Continue work on the Climate Action and Adaptation Plan including coordination with the Local Hazard Mitigation Plan and General Plan (Infrastructure and Environment). • Continue efforts related to Transportation Demand Management (Infrastructure and Environment).
• Continue efforts on economic recovery and development, including work on the Coastside Recovery Initiative (Fiscal Sustainability, Inclusive Governance). • Continue to work with the Coastside Chamber of Commerce to support and sustain a business environment that contributes to economic prosperity, revenue generation, and improves the economic well-being of the community (Fiscal Sustainability). • Continue working on affordable housing initiatives. Complete the draft Housing Element Development, conduct outreach, and present to city meetings. • Continue to identify potential housing sites and work to enable affordable housing development of publicly- and privately-owned properties. • Provide short-term housing support. Identify viable short-term opportunities, seek Emergency Housing Funding by working with local CBOs to distribute emergency Draft
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housing funds (from the Affordable Housing Fund) to residents in need to prevent displacement.
• Support community mental health initiatives through CSFA program, Mental Health Workgroup, Substance Abuse Workgroup, CUSD mental health fair (ongoing) • Complete emergency preparedness and evacuation plans for tsunamis, wildfires, dam inundation, and shelters-in place.
• Implement the Capital Improvement Program to include the Storm Water Master Plan Update; Kehoe/Pilarcitos Outfall Repair; Roosevelt Ditch Spot Repair; and Kehoe Watershed Enhancement and Environmental Stewardship Project. • Make downtown Improvements to Mac Dutra (placita cultural); Public Art and Murals; and Wayfinding Signage CIP project.

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CITY COUNCIL
101‐110

DIVISON EXPENSE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Salaries & Benefits 53,933                                         53,933                    58,239                      61,038 Materials & Supplies 29,589                                         26,199                    37,500                      46,500 Contract Services 87,845                                         69,537                  120,000                    125,000 Transfers / Allocations Out 10,793                                           2,656                    18,971                      16,140 Division Total 182,160                                     152,325                  234,710                    248,677

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
General Fund 182,160                                     152,325                  234,710                    248,677 Division Total 182,160                                     152,325                  234,710                    248,677

FTE COUNT BY TITLE
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Council Member 5.00 5.00 5.00 5.00
FTE Total 5.00 5.00 5.00 5.00
‐
50 100
150
200
250
300
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
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CITY COUNCIL
101‐110

DIVISON EXPENSE BY LINE ITEM
Account
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
5000‐5999 Salaries & Benefits 53,933                                         53,933                    58,239                      61,038 6101 General Supplies 779                                                 1,241                      2,000                        6,000 6103 Awards/Promotions                           ‐ ‐                                                     500                            500 6201 Training/Meetings 15,137                                         12,560                    20,000                      25,000 6202 Memberships, Dues & Subscriptions 13,673                                         12,398                    15,000                      15,000 6301 Contract Services (Non‐Govt) 34,945                                           8,037                      5,000                        5,000 6306 Cable TV Expense 52,900                                         61,500                    85,000                      85,000 6321 Interpretation Services                          ‐                           ‐                    30,000                      35,000 7201 General Transfers Out                    10,793                       2,656                          ‐                             ‐ 7203 Vehicle ISF                          ‐                           ‐                      2,877                            570 7204 Equipment Fund ISF                          ‐                           ‐                      7,254                        7,062 7205 Risk Management ISF                          ‐                           ‐                      8,840                        8,508 Division Total 182,160                                     152,325                  234,710                    248,677

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
General Fund Contribution 182,160                                     152,325                  234,710                    248,677 Division Total 182,160                                     152,325                  234,710                    248,677

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000‐5999 Compensation
6100‐6199 Supplies & Materials
6200‐6299 Training & Memberships
6300‐6399 Contract Services
7000‐7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Slight increase is included.

Adhoc supplies and materials for City Council is budgeted here. Slight increase to this category to cover existing costs.

Meetings and conferences for council members on city affairs.

Costs include the broadcasting and interpretation services of public council Draft
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CITY OF HALF MOON BAY
City Manager
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City
Manager
Deputy City
Manager
Communications
Director
&
City Clerk
Administrative
Services
Director
Public Works
Director
Community
Development
Director
San Mateo County
Sheriff
City Manager’s Department
Senior Management
Analyst
Recreation
Supervisor
Emergency
Preparedness Analyst
Community &
Economic Vitality
Manager
OES Coastside
District Coordinator
Recreation
Leader
Recreation
Leader
Building
Attendant
Administrative
Analyst
Management
Analyst
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City Manager
Core Services
The core services of the City Manager’s Office provide overall leadership and management of the City, execute Council policy, and ensure that residents of Half Moon Bay receive fair treatment, excellent customer service, and appropriate stewardship of tax revenue, in support of a vibrant community with well-maintained infrastructure and a broad range of customary public services.

Description
The City Manager’s Office provides overall management of City operations and oversight of City departments. The City Manager is responsible for carrying out the strategic goals, policies, and directives of the City Council, for the effective and cost-efficient management of City operations and personnel, and for preparing and submitting the annual budget to the Council. The City Manager authorizes and oversees the hiring of all City Staff.

Service Priorities
• Oversee the delivery of public services in accordance with all federal and state laws, and the policies, ordinances, and resolutions adopted by the City Council. • Direct and organize City departments, programs, and services. • Carry out elements of the Strategic Plan and City Council priorities. • Recommend the adoption of policies and ordinances, as necessary. • Ensure the long‐term fiscal viability of the City.
• Increase the productivity, efficiency, and effectiveness of the organization. • Enforce contracts, agreements, and permits authorized by the City Council. • Advise the City Council on matters regarding current and future fiscal, staffing, and program needs of the City.
• Oversee customer service, and community engagement.
• Provide and expand quality recreational services and opportunities to individuals and families.
• Provide and expand health and wellness opportunities to youth, adults, and seniors. • Provide and expand enrichment activities for all ages. • Provide community gathering and meeting spaces through facility rentals. • Provide opportunities for community engagement in recreation services programs.

Staffing
The City Manager’s Department is comprised of the City Manager, Deputy City Manager, a Senior Management Analyst, and an Executive Assistant. The City Manager’s Office provides direct oversight of the Emergency Services, Economic and Community Vitality, and Recreation Services Divisions, which respectively include a Manager, two Management Analysts, an Administrative Analyst, a Recreation Supervisor, two Recreation Leaders, and part-time Building Attendants.

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Service Level Changes
The creation of two new positions within the newly restructured Economic and Community Vitality Division, a Manager and an Administrative Analyst, will facilitate a redistribution of responsibilities within the City Manager’s Office, for an increased focus on economic recovery and development, grants management, coordination with non-profits and other service providers, and the expansion and institutionalization of the CARES program.

Budget Highlights / Summary of Changes
The City Manager’s Office will be reorganized to facilitate thoughtful and proactive approaches to each of the areas of responsibility within the department, as well as some new areas of responsibility and new long-term projects. The Community Services Division will be renamed the Economic and Community Vitality Division and take on greater responsibility for economic recovery and development, coordination with non-profits and other service providers, and collaborating and supporting cross-departmental initiatives like housing and age friendly communities. These changes will allow the Senior Management Analyst to develop and manage a robust citywide grants management program, improve the strategic planning, tracking and reporting process, take on oversight of department budget development and tracking, and lead additional special projects. The Deputy City Manager will have additional bandwidth to provide more focused oversight of Recreation, Emergency Services and Public Safety, and large initiatives such as community access to digital infrastructure, as well as continued oversight and expansion of the newly launched CARES program.

The Department is comprised of the following divisions:

Emergency Services
Core Services
The core services of the Emergency Services division assist residents and businesses, along with other Coastside communities and City staff to be prepared for and better respond to emergencies and disasters.

Description
The Emergency Services division works in partnership with the San Mateo County Office of Emergency Services to prepare staff, Coastside agencies and residents to effectively respond to emergencies. The division develops and updates the general emergency operations plans and the Hazard Mitigation Plan, trains staff in emergency operations procedures, and serves as the City’s representative on the Coastside Emergency Action Program and the San Mateo County Emergency Managers Association to assist with local and regional emergency preparedness efforts.

Recreation
Core Services
The core services of the Recreation division enrich lives within the community through affordable, accessible citywide programs that promote educational and recreational opportunities that contribute to a healthy community and lifestyles.

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Description
The Recreation division is responsible for delivering quality, affordable recreation programs and opportunities for community enrichment to the residents of Half Moon Bay and the Coastside. The division works closely with the Parks and Recreation Commission to identify opportunities to improve and expand recreation programs and to implement the recommendations in the Parks Master Plan. The division is responsible for coordinating, renting, and scheduling City facilities, including Smith Field, the Train Depot, the Ted Adcock Community Center, and the new Half Moon Bay Library.

Economic and Community Vitality
Core Services
The core services of the Economic and Community Vitality division promote engagement with the community through citywide programs and initiatives that create connections, enrich lives, support equity, provide forums for multiple and diverse perspectives, and provide educational opportunities, through public participation and culturally competent outreach to our most vulnerable residents. The division will also work closely with the community on economic recovery and development efforts, including collaboration on business support, workforce development, adult education, and tourism.

Description
The Economic and Community Vitality division serves as a link between the City, local businesses, and community partners including other government agencies, educational institutions, business groups, and non-profits, and helps connect businesses, residents and visitors to a variety of support services and resources, with a goal of creating a more sustainable and resilient future for our community.

FY 2021-22 Department Accomplishments
• Guided the City Council in further updating its Strategic Plan and priorities. • Coordinated and facilitated two City Council Listening Sessions for residents to express their priorities and interests, leading up to a Council Priorities Setting meeting and the development of the FY 2022-23 Budget.
• Completed the planning phase of the Coastside Recovery Initiative (CRI), which included an economic Recovery Task Force, to coordinate recovery efforts and long-term planning toward a more equitable, vibrant, and resilient Coastside economy. The planning phase resulted in a high-quality report which included 15 recommendations across four focus areas.
• Continued to lead public safety outreach and research efforts through the City Council Public Safety subcommittee as well as the Coastside Mental Health Workgroup, resulting in the development of a community responder program and a public safety community survey, while informing the negotiation of the contract with the Sheriff’s office for ongoing law enforcement services.

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• Launched the Crisis Assistance Response and Evaluation Services (CARES) program to provide improved outcomes and a more dignified and appropriate response to mental health crises in Half Moon Bay.
• Leveraged partnerships with County and local non-profit organizations to support underserved populations through emergency rental assistance funding, Coastside Collaborative information sessions, and mental health/substance abuse discussions. • Continued to support County sponsored COVID-19 testing clinics at the Ted Adcock Community Center and community-based vaccination clinics, targeting underserved and vulnerable populations on the coast.
• Continued the Community Services Financial Assistance Grant Program to support local nonprofits who serve the Half Moon Bay Community; made modifications to align with CRI recommendations and address COVID-19 recovery for those most in need. • Facilitated and staffed regular food distribution opportunities through the Second Harvest Food Bank, providing food to hundreds of vulnerable residents. • Reestablished in-person recreation programming, including sports, dance, art and cooking classes, the summer music in the plaza series, and other community events. • Launched several new recreation activities, including an adult kickball tournament, weekly open gym basketball and outdoor pickleball at Cunha through an agreement with the Boys and Girls Club and School District, and continued to grow the adult softball leagues at Smith Field.
• Collaborated with the community to launch the Make It Main Street first Thursday events in downtown Half Moon Bay, bringing Coastside artists, creators and makers together with non-profits and community to connect, exchange, and share while stimulating the downtown economy on a monthly basis from Spring through Fall of each year.

FY 2022-23 Department Goals / Strategic Plan Elements
• Advance projects that link to the City’s Strategic Plan and Council Priorities (All Strategic Elements).
• Continue to review and revise staff structure to maximize efficiency and increase performance (Fiscal Sustainability, Inclusive Governance). • Work with City Council to increase transparency and reporting on the City’s Strategic Plan and Council Priorities (Infrastructure and Environment). • Collaborate with Community Development to provide information and policies to address the lack of affordable housing (Healthy Communities and Public Safety). • Continue to collaborate with the Sheriff’s Office, local agencies, and residents to address public safety and law enforcement concerns and identify innovative programs to improve community relations and response to vulnerable communities (Healthy Communities and Public Safety).
• Collaborate with the City’s departments, regional public agencies, and local groups to develop and implement plans to better prepare the City, its residents, and the greater Coastside for natural disasters and other emergencies (Healthy Communities and Public Safety).

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• Continue to lead efforts around economic recovery and development through the Coastside Recovery Initiative and partnerships with the Chamber of Commerce and other business groups (Inclusive Governance).
• Continue to lead the Coasthouse Community Advisory Committee and work with the County and local service providers on supporting the homeless and the shelter (Inclusive Governance, Healthy Communities and Public Safety).
• Work with the Parks and Recreation Commission to implement City priorities and the Parks Master Plan (Inclusive Governance, Healthy Communities and Public Safety). • Develop and implement additional in-person recreation and community activities and continue to expand the number and types of classes offered to reach a broader and more diverse group of residents (Healthy Communities and Public Safety, Inclusive Governance). • Continue to engage in regional partnerships to support projects in Half Moon Bay and those potentially impacting the Coastside (Inclusive Governance, Infrastructure and Environment).

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Performance & Workload Measures
Emergency Services
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Assist residents and businesses to be prepared for and better respond to emergencies and disasters Annual review and update of emergency specific evacuation plans No No Yes Yes Assist City staff to be prepared for and better respond to emergencies and disasters Annual review and update of Emergency Operations Plan Yes No Yes Yes Percent of staff up-to-date with ICS trainings 75% 75% 75% 90% Workload Measures
Number of community members receiving outreach/education materials n/a n/a n/a 100 Recreation Services
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Provide affordable and accessible educational and recreational programs that contribute to a healthy community and lifestyles
Mail quarterly recreation guides to Coastside households Yes No Yes Yes Percent of participants in recreation classes utilizing the Rollie Wright Scholarship

TBD TBD TBD TBD
Provide affordable and accessible facilities to community members and organizations Percent of facility rentals provided to HMB residents and organizations TBD TBD TBD TBD Percent of commercial facility rentals by non-profit organizations TBD TBD TBD TBD Workload Measures
Number of Recreation class participants TBD TBD TBD TBD Number of facility rentals TBD TBD TBD TBD
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Economic & Community Vitality
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Support programs and initiatives that create connections, enrich lives, support equity, provide forums for multiple and diverse perspectives, and provide educational opportunities Participate in the Coastside Collaborative monthly meetings Yes Yes Yes Yes Percent of CSFA grant recipients meeting all goals and outcomes 100% 100% 90% 90% Support economic recovery and development efforts
Percent of Coastside Recovery Initiative recommendations with significant implementation activity
n/a n/a TBD TBD
Average occupancy rate of available hotel rooms (calendar year) 65.7% 37% 51% 55% Workload Measures
Number of CSFA grant recipients 12 18 20 8
Annual distribution of CSFA grant funds (in $) 150,000 225,000 250,000 300,000 Draft
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CITY MANAGER'S OFFICE
101‐120

DIVISON EXPENSE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Salaries & Benefits 575,099                                     536,525                  655,704                    754,161 Materials & Supplies 20,883                                         22,178                    53,500                      50,000 Contract Services 151,813                                     203,238                  330,000                    528,172 Transfers / Allocations Out 33,173                                           4,059                    80,795                      92,473 Division Total 780,968                                     765,999              1,119,999                1,424,806

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Other Revenue                          ‐                     42,278                          ‐                    299,158 General Fund                  780,968                   723,721              1,119,999                1,125,649 Division Total 780,968                                     765,999              1,119,999                1,424,806

FTE COUNT BY TITLE
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
City Manager                        0.85                         0.85                        0.85                           0.85 Deputy City Manager                        0.45                         0.35                        0.35                           0.35 Senior Management Analyst                        0.70                         0.80                        0.90                           1.00 Management Analyst                          ‐                         0.40                        0.50                           0.40 Executive Assistant                        1.00                           ‐                        1.00                           1.00 FTE Total                        3.00                         2.40                        3.60                          3.60 ‐
200
400
600
800
1,000
1,200
1,400
1,600
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
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CITY MANAGER'S OFFICE
101‐120

DIVISON EXPENSE BY LINE ITEM
Account
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
5000‐5999 Salaries & Benefits 575,099                                     536,525                  655,704                    754,161 6101 General Supplies 2,143                                             5,653                    23,500                      15,000 6201 Training/Meetings 15,865                                           2,472                    15,000                      20,000 6202 Memberships, Dues & Subscriptions 2,875                                           14,053                    15,000                      15,000 6301 Contract Services (Non‐Govt) 30,734                                       198,238                    27,000                    403,172 6320 Professional Services                           ‐ ‐                                             263,000                      25,000 6505 Land Acquisition 120,000                   ‐                            ‐                           ‐ 6610 JPA/District Contributions                           ‐ ‐                                               40,000                             ‐ 6699 Miscellaneous Expense                      1,079                       5,000                          ‐                    100,000 7201 General Transfers Out                    33,173                       4,059                          ‐                             ‐ 7203 Vehicle ISF                          ‐                           ‐                    12,254                        3,269 7204 Equipment Fund ISF                          ‐                           ‐                    30,892                      40,460 7205 Risk Management ISF                          ‐                           ‐                    37,649                      48,744 Division Total 780,968                                     765,999              1,119,999                1,424,806

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
4902 Miscellaneous Revenue                          ‐                      ‐ 42,278                                              299,158 General Fund Contribution 780,968                                     723,721              1,119,999                1,125,649 Division Total 780,968                                     765,999              1,119,999                1,424,806

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000‐5999 Compensation
6100‐6199 Supplies & Materials
6200‐6299 Training & Memberships
6300‐6399 Contract Services
6600‐6699 Other Expenses
7000‐7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Various office supplies and materials to support operations. Decrease in this category to assist funding new Economic and Community Vitality Division.

Training, professional memberships, and conferences. Slight increase is due to conferences returning.

Costs include supporting the CARES project and program evaluation, grants support, and annexation support.

Amounts here encompass support for various City events such as Make it Main Street, the Pumpkin Festival, and the Wine and Jazz Festival.

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RECREATION SERVICES
101‐610

DIVISON EXPENSE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Salaries & Benefits 359,142                                     281,943                  410,117                    456,341 Materials & Supplies 24,213                                         14,230                    26,500                      34,000 Contract Services 99,817                                         36,151                  118,381                    116,380 Transfers / Allocations Out 27,252                                           4,491                    45,012                      42,111 Division Total 510,424                                     336,815                  600,010                    648,832

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Charges for Services                  119,372                       88,028                   155,013                      169,000 Other Revenue                       4,416                       15,592                      10,000                        10,000 General Fund                  386,635                    233,195                   434,997                      469,832 Division Total 510,424                                     336,815                  600,010                    648,832

FTE COUNT BY TITLE
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Deputy City Manager                        0.30                         0.20                        0.20                           0.20 Senior Management Analyst                        0.15                         0.10                          ‐                             ‐ Deputy City Clerk                        0.10                           ‐                          ‐                             ‐ Recreation Supervisor                        1.00                         1.00                        1.00                           1.00 Recreation Leader I/II/III                        2.00                         1.00                        2.00                           2.00 FTE Total                        3.55                         2.30                        3.20                          3.20 Part‐Time non‐benefited employees included: Building Attendant (3,120 hours) ‐
100
200
300
400
500
600
700
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
235

RECREATION SERVICES
101‐610

DIVISON EXPENSE BY LINE ITEM
Account
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
5000‐5999 Salaries & Benefits 359,142                                     281,943                  410,117                    456,341 6101 General Supplies 18,570                                           8,814                    16,500                      20,000 6201 Training/Meetings 3,088                                                143                      4,000                        6,000 6202 Memberships, Dues & Subscriptions 2,555                                             5,273                      6,000                        8,000 6301 Contract Services (Non‐Govt) 55,900                                           3,704                    51,700                      51,700 6302 Contract Services (Govt)                          ‐                        ‐ 1,387                           ‐ 6303 Advertising Costs 1,833                                             1,136                      4,000                        2,000 6307 Contract Classes 42,084                                         29,924                    62,681                      62,680 7201 General Transfers Out                    27,252                       4,491                          ‐                             ‐ 7203 Vehicle ISF                          ‐                           ‐                      6,827                        1,488 7204 Equipment Fund ISF                          ‐                           ‐                    17,210                      18,425 7205 Risk Management ISF                          ‐                           ‐                    20,975                      22,197 Division Total 510,424                                     336,815                  600,010                    648,832

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
4202 Special Events Permits                          ‐                        ‐ 5,069                           ‐ 4204 Special Events Permits                          ‐                       1,159                      5,000                        2,000 4551 Parks & Recreation Classes 54,338                                         66,666                    89,531                      90,000 4710 Facilities Rental 65,034                                         15,135                    60,483                      77,000 4902 Miscellaneous Revenue 4,416                                           15,592                    10,000                      10,000 General Fund Contribution 386,635                                     233,195                  434,997                    469,832 Division Total 510,424                                     336,815                  600,010                    648,832

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000‐5999 Compensation
6100‐6199 Supplies & Materials
6200‐6299 Training & Memberships
6300‐6399 Contract Services
7000‐7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases and an increase of hours available to part‐time staff.

Supplies and materials to support various recreation programs and services.

Slight increase to cover rising costs.

Training, licensing and professional memberships for staff. Increases are included as programming is anticipated to increase.

Costs include recreation guides, music events, umpire contracts, class Draft
instructors and other costs related to recreational programs. 236

ECONOMIC AND COMMUNITY VITALITY
101‐640

DIVISON EXPENSE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Salaries & Benefits 230,907                                     254,040                  233,022                    552,146 Materials & Supplies 3,215                                                455                      8,400                      21,000 Contract Services 243,750                                     277,946                  300,000                    634,740 Transfers / Allocations Out 30,273                                           6,452                    47,739                      83,836 Division Total 508,144                                     538,893                  589,161                1,291,721

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Other Revenue                     15,000                                ‐                                 ‐                                   ‐ General Fund                  493,144                    538,893                   589,161                  1,291,721 Division Total 508,144                                     538,893                  589,161                1,291,721

FTE COUNT BY TITLE
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Deputy City Manager                        0.20                         0.20                        0.20                           0.20 Community Services Manager                          ‐                           ‐                          ‐                           1.00 Senior Management Analyst                        0.15                         0.10                        0.10                             ‐ Management Analyst                        1.00                         1.30                        1.00                           1.00 Administrative Analyst                          ‐                           ‐                          ‐                           1.00 FTE Total                        1.35                         1.60                        1.30                          3.20 ‐
200
400
600
800
1,000
1,200
1,400
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
237

ECONOMIC AND COMMUNITY VITALITY
101‐640

DIVISON EXPENSE BY LINE ITEM
Account
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
5000‐5999 Salaries & Benefits 230,907                                     254,040                  233,022                    552,146 6101 General Supplies 2,360                                                455                      5,000                      10,000 6201 Training/Meetings 855                           ‐                                                 3,000                      10,000 6202 Memberships, Dues & Subscriptions                           ‐ ‐                                                     400                        1,000 6301 Contract Services (Non‐Govt) 243,750                                     277,946                    50,000                      85,000 6320 Professional Services                           ‐ ‐                            ‐                                              204,740 6606 Financial Aid/Grants                           ‐ ‐                                             250,000                    305,000 6610 JPA/District Contributions                           ‐ ‐                            ‐                                                40,000 7201 General Transfers Out                    30,273                       6,452                          ‐                             ‐ 7203 Vehicle ISF                          ‐                           ‐                      7,240                        2,963 7204 Equipment Fund ISF                          ‐                           ‐                    18,253                      36,681 7205 Risk Management ISF                          ‐                           ‐                    22,246                      44,191 Division Total 508,144                                     538,893                  589,161                1,291,721

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
4850 Grants 15,000                     ‐                            ‐                           ‐ General Fund Contribution 493,144                                     538,893                  589,161                1,291,721 Division Total 508,144                                     538,893                  589,161                1,291,721

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000‐5999 Compensation
6100‐6199 Supplies & Materials
6200‐6299 Training & Memberships
6300‐6399 Contract Services
6600‐6699 Other Expenses
7000‐7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is from the addition of two FTEs and merit increases.

Supplies and materials relating to administration and oversight of various programs and outreach.

Training, licensing and professional memberships for staff. Increase is included to support the expanded scope of the division and addition of staff.

For various services relating to economoic and community services. New programmatic additions include a feasability study, community lending analysis, and an economic development consultant.

Category encompasses 305K of grant aid via the Community Services Financial Assistance (CSFA) program and contributions to the hotel Business Improvement District (BID).

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EMERGENCY SERVICES
101‐320

DIVISON EXPENSE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Salaries & Benefits 25,095                                         95,082                  133,383                    152,201 Materials & Supplies 8,212                                                297                    18,600                      25,700 Contract Services 131,417                                       24,977                  100,000                      88,950 Transfers / Allocations Out 7,432                                             2,341                    22,174                      18,521 Division Total 172,155                                     122,697                  274,157                    285,372

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Other Revenue                          ‐                   153,487                          ‐                             ‐ General Fund                  172,155                   (30,790)                  274,157                    285,372 Division Total 172,155                                     122,697                  274,157                    285,372

FTE COUNT BY TITLE
Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Deputy City Manager                          ‐                         0.20                        0.20                           0.20 Management Analyst 0.25                                                 0.30                        0.50                           0.60 FTE Total 0.25                                                 0.50                        0.70                          0.80 ‐
50 100
150
200
250
300
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
239

EMERGENCY SERVICES
101‐320

DIVISON EXPENSE BY LINE ITEM
Account
Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
5000‐5999 Salaries & Benefits 25,095                                         95,082                  133,383                    152,201 6101 General Supplies 8,212                                                297                    15,000                      20,000 6201 Training/Meetings                           ‐ ‐                                                 3,000                        5,000 6202 Memberships, Dues & Subscriptions                           ‐ ‐                                                     600                            700 6301 Contract Services (Non‐Govt) 433                                                     ‐ 433                                                      700 6302 Contract Services (Govt) 130,985                                        ‐ 24,544                                                20,000 6320 Professional Services                           ‐ ‐                                                ‐ 35,000 6505 Land Acquisition                           ‐ ‐                                                     ‐                             ‐ 6610 JPA/District Contributions                          ‐                           ‐                    65,000                      68,250 6699 Miscellaneous Expense                          ‐                           ‐                          ‐                             ‐ 7201 General Transfers Out                      7,432                       2,341                          ‐                             ‐ 7203 Vehicle ISF                          ‐                           ‐                      3,363                            655 7204 Equipment Fund ISF                          ‐                           ‐                      8,478                        8,104 7205 Risk Management ISF                          ‐                           ‐                    10,333                        9,763 Division Total 172,155                                     122,697                  274,157                    285,372

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019‐20
Actual
2020‐21
Revised
2021‐22
Recommended
2022‐23
4850 Grants                          ‐                    ‐ 153,487                           ‐ General Fund Contribution 172,155                                     (30,790)                  274,157                    285,372 Division Total 172,155                                     122,697                  274,157                    285,372

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000‐5999 Compensation
6100‐6199 Supplies & Materials
6200‐6299 Training & Memberships
6300‐6399 Contract Services
6600‐6699 Other Expenses
7000‐7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Contribution to San Mateo County Office of Emergency Services is budgeted here.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases and allocation of more staff time.

Supplies and materials to support Coastside Preparedness Day, the emergency operation center and other supplies.

Training, licensing and professional memberships for staff. Category remains relatively unchanged.

Costs mostly include a continuation of evacuation planning and training Draft
support.
240

CITY OF HALF MOON BAY
City Attorney
Image Coming Soon
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City Attorney
Core Services
The core services of the City Attorney provide the City Council and City staff with prompt and high-quality legal advice, counsel, and representation.

Description
The City Attorney reports directly to the City Council and is charged with the task of serving as the legal counsel to the City Council, Planning Commission, City Manager, and City staff on all legal aspects of municipal operations.

Legal services include legal advice and analysis, preparation of legislation including ordinances and resolutions, drafting or review of contracts and agreements, conducting research and supporting the City in litigation, civil and criminal actions, and code enforcement. The City Attorney attends all regular and special City Council meetings. Other services include meetings with the City Manager, City Executive Team, and other city officials on an on-call basis while keeping the City Council, City Manager, and staff advised of current laws affecting decisions and programs of the City.

Service Priorities
• Devote time and resources necessary to provide timely, affordable, high-quality legal advice.
• Minimize liability and work creatively to accomplish policy objectives of the City. • Offer legal opinions and draft ordinances and other documents in a timely and professional manner.
• Provide high-quality litigation representation to ensure matters are resolved cost effectively.
• Respond to inquiries from the public as appropriate, and in a timely and constructive manner, while ensuring that the City’s interests are protected, and policies are implemented.

Staffing
The department is comprised of the City Attorney, who is retained under contract with a law firm, and a staff of associate attorneys who act as Assistant or Deputy City Attorneys as required.

Outside legal counsel may be retained for assistance on specialized issues and areas of law. The firm provides all legal services and includes all administrative costs such as paralegals, secretarial services, clerical services, continuing legal education, law library, and research costs, etc.

Service Level Changes
For FY 2022-23, the City Attorney’s Office will continue to be available both onsite and remotely to the City Council, Planning Commission, Parks and Recreation Commission, City committees, and staff.

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Budget Highlights / Summary of Changes
The City Attorney budget consists of contract legal services for the City Attorney and Deputy City Attorneys, and support staff. It excludes reimbursable matters, unbudgeted litigation, and certain specialized services provided by outside legal counsel that is budgeted in respective department budgets.

Fiscal Year 2021-2022 Accomplishments
• Provided legal review and drafting support for city ordinances regarding building electrification, short-term rentals, accessory dwelling units, SB 1383 (organics and edible food recovery), and the sign ordinance update.
• Provided legal support for the City’s redistricting process and redistricting ordinance. • Provided negotiation/real estate support related to the City’s lot retirement program West of Railroad Avenue, the City’s parklet program, and license/leases of City-owned property.
• Ongoing legal support related to the COVID pandemic, vaccination policy, and Brown Act requirements.
• Provided legal and planning support for implementation of the Local Coastal/Land Use Plan (LC/LUP) and large planning applications.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Continue to implement Council policy directives and ensure projects and directives are legally secure (Inclusive Governance).
• Provide election law support for the November election (Inclusive Governance). • Draft/provide legal review of plans/ordinances regarding Council priorities related to sustainability efforts (CAAP), affordable housing, implementation of the LC/LUP and other priority matters (Inclusive Governance).
• Continue economic resolution of claims and litigation (Fiscal Sustainability).

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CITY ATTORNEY
101-130

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services 357,900 496,329 385,000 404,250
Transfers / Allocations Out - - - -
Division Total 357,900 496,329 385,000 404,250

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 357,900 496,329 385,000 404,250
Division Total 357,900 496,329 385,000 404,250

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
FTE Total 0.00 0.00 0.00 0.00
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
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CITY ATTORNEY
101-130

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits - - - -
6301 Contract Services (Non-Govt) 357,900 444,708 - -
6325 Legal Counsel - 51,620 385,000 404,250
7203 Vehicle ISF - - - -
7204 Equipment Fund ISF - - - -
7205 Risk Management ISF - - - -
Division Total 357,900 496,329 385,000 404,250

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund Contribution 357,900 496,329 385,000 404,250 Division Total 357,900 496,329 385,000 404,250

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance. Since this department contains no staff personnel, there are no internal service charges.

Explanation
All salaries and benefits are budgeted in these line items. Attorney services are contracted out thus no salary charges are budgeted.

Costs only contain legal counsel services for all nonspecific citywide functions.

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CITY OF HALF MOON BAY
Communications/City Clerk
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City
Manager
Communications
Director
&
City Clerk
City Clerk & Communications Department
Communications
Program
Manager
Assistant
City Clerk
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Communications & City Clerk
Core Services
The core services of the Communications & City Clerk Department promote openness in government and the free exchange of public information to engage residents in City policies and decision-making processes. The Communications & City Clerk Department is committed to serving the citizens of our community in a neutral and ethical manner by providing equal access to open and transparent government, ensuring the integrity of the participatory process, bridging internal and external communication pathways, and enhancing the public’s trust in local government. The City Clerk Division manages and provides access to City records, manages the legislative and governmental affairs of the City, administers elections, and records legislative functions. The Communications Division promotes inclusive public engagement and positive community relations through effective and transparent communications strategies.

Description
The Communications & City Clerk Department is comprised of two divisions: Communications and City Clerk.

The Communications Division is responsible for all internal and external communications. The division ensures the dissemination of timely and accurate public information of City operations, projects, policies, Council actions, services, and programs through traditional media, social media, and online. The division engages the community and increases transparency utilizing multiple social media platforms and online communication tools that promote accessible and convenient information.

The City Clerk Division conducts regular and special general municipal elections in consolidation with the County of San Mateo for the election of City Councilmembers and local initiatives, referendums, and recalls. The division manages the City’s legislative and intergovernmental affairs. The division administers Political Reform Act requirements related to campaign disclosure statements, conflict of interest filings, and AB1234 ethics training. Brown Act requirements are administered by the City Clerk Division ensuring meetings, agendas, minutes, reports, public notices, resolutions, and ordinances are prepared, posted, and published pursuant to law. The City Clerk serves as Clerk of the Council and attends, monitors, and retains complete records of all City Council proceedings. The City Clerk ensures open and transparent access through recordsrelated services including records management, retention, and Public Records Act programs.

Additionally, the division administers the boards and commissions program related to vacancies, orientation, commission handbooks, and Maddy Act compliance. The City Clerk serves as the City’s Elections Official, Public Information Officer, Political Reform Act Filing Officer, Records Manager, and Compliance Officer.

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Service Priorities
• Maintain effective communication with community members, staff, and the Council to increase the understanding of and support for City programs, policies, and projects, and to develop positive relations through impactful outreach. • Gather and share information to support and encourage open, participatory government and an informed community.
• Manage the City’s governmental and legislative affairs, including tracking legislation, preparing position letters, advocating with local legislators, seeking, and applying for grant opportunities, and monitoring interagency appointments and actions. • Provide City Council support, including agenda and packet preparation, public noticing, and distribution of materials to the City Council, staff, and the public. • Support boards and commissions, including agenda and packet preparation, public noticing, and distribution of materials to Commissioners, staff, and the public. • Process local legislation, including resolutions, ordinances, and minutes. • Oversee elections, including qualifying candidates, petitions, and ballot measures, processing all necessary resolutions, monitoring campaign filing requirements, and certifying election results.
• Maintain records and archives, including responses to public records requests.

Staffing
The Communications & City Clerk Department was staffed in FY 21-22 by a Communications Director, Communications Program Manager, and a Deputy City Clerk.

Service Level Changes
For FY 22-23, a Social Media Intern position and Assistant City Clerk position has been added, with the elimination of the Deputy City Clerk position.

Budget Highlights / Summary of Changes
The Communications & City Clerk budget consists of costs for compensation and operations of the department.

Fiscal Year 2021-2022 Accomplishments
• Completed the 2021 Redistricting Process and adopted District Map 503B, including creation and management of a seven-member advisory committee, numerous public workshops, multiple public outreach campaigns and materials, and management of the demographer consultant contract.
• Continued to lead public information outreach related to the COVID-19 pandemic, including numerous news releases, weekly e-news, weekly mayor’s letters, website updates, social media updates, signage, coordination with agencies, announcements of closures and service modifications, and other items.
• Created a new 2021 Virtual State of the City video.

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• Continued the City’s Legislative Platform, which had a primary focus on legislation and budgetary items related to COVID-19, managed the Legislative Subcommittee, and managed the lobbyist contract for the City’s legislative affairs. • Worked with the City’s lobbyist and Assemblymember Berman’s office to secure $4.75M in a direct state budget earmark for Carter Park.
• Worked with various departments to draft communication outreach campaigns surrounding events/programs/activities such as the Smith Field Park Master Plan, Magnolia Park Master Plan, CARES Pilot Program, Parklet Pilot Program, Building Electrification, and the Coastside Recovery Initiative. • Continued to host successful virtual council meetings and subcommittee meetings during the COVID-19 Pandemic.
• Continued to build our social media presence and increase engagement through the hiring of a social media intern.
• Received awards from the City and County Communications Association (3CMA) for COVID-19 Digital (mayor’s letters, views from home, wave of strength) and Print PR (mask signs) campaigns.
• Negotiated the lobbyist contract to include federal advocacy at zero additional cost to the City.
• Processed 145 public records requests, for a total of 315 hours.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Conduct the 2022 general municipal election, including public outreach campaigns around the new district map, how to run for city council, and how to vote (Inclusive Governance). • Complete and publish the Emergency Information Operations Plan (Healthy Communities and Public Safety).
• Work with departments to update the content and usability of the City’s website and department pages and complete a website redesign (Inclusive Governance). • Conduct the first N.E.T. Citizens Academy and Future Leaders Civics Academy since prepandemic (Inclusive Governance). • Continue to expand local relationships, community, and partnerships as part of the City’s intergovernmental affairs (Inclusive Governance).
• Continue to seek grant opportunities and monitor legislation in accordance with the City of Half Moon Bay Legislative Program (Healthy Communities and Public Safety, Inclusive Governance).

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Performance & Workload Measures
Communications
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Communicate to and engage with the general public on important city issues Social Media and eNewsletter Engagement Yes Yes Yes Yes Number of Social Media Campaigns 25 589 575 600
Provide communications support to other departments
Percentage of Complete Outreach Campaigns 100% 100% 100% 100% City Clerk / Legislative Affairs
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Legislative Affairs
Number of position letters sent 13 20 16 20
Percentage of state legislative bills tracked per adopted platform 50% 52% 55% 57% Voter Turnout in Elections
Voter Turnout Percentage N/A 89% N/A 93%
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CITY CLERK
101-140

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 263,907 247,077 197,261 290,622
Materials & Supplies 17,701 6,886 14,500 14,500
Contract Services 229,797 171,247 285,000 305,000
Transfers / Allocations Out 24,804 7,479 48,590 42,347
Division Total 536,210 432,689 545,351 652,468

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Other Revenue 475 - - -
General Fund 535,735 432,689 545,351 652,468
Division Total 536,210 432,689 545,351 652,468

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
City Clerk / Communications Director 0.55 0.55 0.55 0.55 Assistant City Clerk - - 1.00 1.00
Deputy City Clerk 0.90 1.00 - -
FTE Total 1.45 1.55 1.55 1.55
Part-Time non-benefited employees included: Intern (1,040 hours) -
100
200
300
400
500
600
700
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
253

CITY CLERK
101-140

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 263,907 247,077 197,261 290,622 6101 General Supplies 4,483 837 3,500 3,500
6104 Employee Engagement 498 - - -
6201 Training/Meetings 11,104 4,320 7,000 7,000
6202 Memberships, Dues & Subscriptions 1,617 1,730 4,000 4,000 6301 Contract Services (Non-Govt) 195,185 125,840 70,000 120,000 6303 Advertising Costs 18,501 7,079 20,000 20,000
6304 Legislative Affairs 129 - 5,000 10,000
6308 Election Costs 15,983 38,328 110,000 110,000
6320 Professional Services - - 45,000 45,000
6324 Software Subscription - - 35,000 -
7201 General Transfers Out 24,804 7,479 - -
7203 Vehicle ISF - - 7,369 1,497
7204 Equipment Fund ISF - - 18,579 18,528
7205 Risk Management ISF - - 22,642 22,322
Division Total 536,210 432,689 545,351 652,468

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4901 Administrative Fees 475 - - -
General Fund Contribution 535,735 432,689 545,351 652,468 Division Total 536,210 432,689 545,351 652,468

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases and the addition of part-time staff.

General office supplies as needed to support the division goals. No change is included.

Training, professional memberships, and conferences. No change is included.

Costs include Granicus, NetFile, NextRequest, the contract with Townsend and records management. Increase is to cover anticipated rising costs in these Draft
contracts.
254

COMMUNICATIONS
101-150

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 197,039 219,251 299,032 282,218
Materials & Supplies 23,819 7,973 18,500 36,000
Contract Services 103,798 68,884 125,000 130,000
Transfers / Allocations Out 15,123 3,157 36,309 31,110
Division Total 339,778 299,265 478,841 479,328

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 339,778 299,265 478,841 479,328
Division Total 339,778 299,265 478,841 479,328

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
City Clerk / Communications Director 0.40 0.40 0.40 0.40 Communications Specialist 1.00 1.00 1.00 1.00
FTE Total 1.40 1.40 1.40 1.40
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
255

COMMUNICATIONS
101-150

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 197,039 219,251 299,032 282,218 6101 General Supplies 1,117 - 5,000 5,000
6104 Employee Engagement 12,704 4,400 5,000 20,000
6201 Training/Meetings 8,466 860 7,000 7,000
6202 Memberships, Dues & Subscriptions 1,533 2,713 1,500 4,000 6301 Contract Services (Non-Govt) 97,851 66,306 105,000 - 6303 Advertising Costs 5,947 2,578 20,000 20,000
6320 Professional Services - - - 110,000
7201 General Transfers Out 15,123 3,157 - -
7203 Vehicle ISF - - 5,507 1,100
7204 Equipment Fund ISF - - 13,883 13,612
7205 Risk Management ISF - - 16,919 16,398
Division Total 339,778 299,265 478,841 479,328

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund Contribution 339,778 299,265 478,841 479,328 Division Total 339,778 299,265 478,841 479,328

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

General office supplies as needed to support the division goals. Increase to cover return to prepandemic employee engagement costs.

Training, professional memberships, and conferences. Slight increase is due to expected ease of COVID restrictions.

Costs include the OpenGov platform, and other specialized communications Draft
services. Increase is primarily from rising costs in exisiting contracts. 256
Draft
257

CITY OF HALF MOON BAY
Administrative Services
Image Coming Soon
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258
City
Manager
Administrative
Services
Director
Administrative Services Department
Finance
Manager
Administrative
Assistant
Budget / IT
Senior
Management
Analyst
Human
Resources
Analyst
Information
Technology
Consultant
Accounting
Technician
Accounting
Technician
Accounting
Technician
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Administrative Services
Core Services
The core services of the Administrative Services Department manage much of the City's organizational infrastructure; its financial processes and systems, its technology, and its people, ensuring that the City’s employees have the tools and environment they need to provide our community the best possible service.

Description
The Administrative Services Department is comprised of Finance, Human Resources, Information Technology, and Risk Management. The Department properly records all financial transactions, implements best practices in employee and labor relations, provides reliable and innovative technology resources and quality internal customer service, and strives to promote a positive work environment for the City’s talented workforce.

Service Priorities
• Undertake financial planning and oversee preparation of the annual budget. • Ensure internal controls through accountability, financial reporting, and audits. • Manage cash assets including banking, cashiering, disbursements, and revenues. • Perform accounts payable, receivable, and payroll functions. • Fulfill the City Treasurer function, ensuring an appropriate investment of funds and debt service administration.
• Provide sound financial guidance to the City Council, City Manager, and staff. • Recruit, hire, develop, and retain a diverse and highly talented professional staff. • Manage administrative and personnel policies and procedures and ensure compliance with related laws and regulations.
• Manage confidential information when consulting employees and handling personnel records.
• Manage labor relations with all bargaining units and unrepresented employees. • Manage grievances related to the Personnel Policies and Procedures, and MOUs. • Enhance staff productivity with a secure network, desktop and portable hardware and supporting software.
• Minimize IT equipment down time and maximize response time and maintain IT systems for disaster recovery and business continuity.
• Ensure the City has adequate insurance coverage for its operations. • Undertake and complete timely claims management.
• Promote policies and programs to reduce risk exposure. • Develop safety policies and procedures and implement risk management best practices.

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Staffing
The Administrative Services Department is comprised of an Administrative Services Director, Finance Manager, Senior Management Analyst, Management Analyst, three Accounting Technicians, and an Administrative Assistant.

Budget Highlights / Summary of Changes
The Administrative Services budget consists of five budget units, with compensation and operating costs for the portions of employee time allocated to each division. Contract expenditures are budgeted for professional services, labor relations, labor-related legal services, and Information Technology (IT) services.

The Department is comprised of the following divisions:

Finance
Core Services
The core services of the Finance division maintain accurate financial records and reports, provide financial support to other departments, and ensure compliance with the City’s policies and procedures.

Description
The Finance division is responsible for all financial operations. Finance tracks revenue, expenditures, debt, and properly records all financial transactions in accordance with Generally Acceptable Accounting Principles (GAAP) and the requirements of the Government Accounting Standards Board (GASB). The division’s goals are to provide financial oversight and support, including implementation and enforcement of financial policies consistent with federal, state, and local mandates, as well as industry best practices.

Human Resources
Core Services
The core services of Human Resources division provide high quality labor and employee relations, staff recruitment and retention, and staff professional development services that support the City’s objectives in serving the needs of the community.

Description
The Human Resources division recruits, develops, and supports the organization’s most valuable resource ─ its staff. The division implements best practices in recruitment, benefits management, professional development, labor relations, grievance management, policy development and implementation, and employee classification and compensation. The division manages highly sensitive and confidential information to effectively conduct workplace investigations, implement practices to enhance employee performance, manage claims and ensure compliance with local, state, and federal labor regulations. The division also participates in San Mateo County Training and Development which offers training and professional development to local Draft
261
governments throughout the County to help recruit and retain talent in local government careers.

Information Technology (See Internal Service Fund 302)
Core Services
The core services of the Information Technology division provide high quality technology-based services and best in class support that facilitate the City’s goal to effectively serve the needs of the community. The 4 core elements are Security, Performance, Innovation, User Experience.

Description
The Information Technology division provides and maintains appropriate hardware and software for City departments; develops and maintains a secure network infrastructure; manages the City’s data and voice infrastructure; and maintains the City’s telecommunication. The division ensures that staff have the resources and training to effectively use equipment and technology in furtherance of their departmental goals. The division implements a people first focus to provide advanced solutions that must improve experience, eliminate obstacles, enhance transparency, and be future focused. The division also assists with providing research and information for Public Records Requests.

Risk Management (See Internal Service Fund 303)
Core Services
The core services of Risk Management enhance safety and protect citizens, employees, and assets of the City by fostering a culture of proactive risk management to effectively forecast, control, and mitigate the City’s risk through effective loss prevention, claims management, and risk financing.

Description
The Risk Management division is comprised of two programs: General Liability and Workers Compensation. Risk Management implements safety policies, and best practices and procedures, to mitigate the City’s risk exposure. The Risk Management division protects City assets, provides liability insurance, and claims management services, and promotes the safety and well-being of City employees. The division manages liability, property and auto claims, and insurance programs. It also develops risk reduction policies and procedures, ensures compliance with the City’s risk management operational best practices, and safety standards and regulations as defined by OSHA and the City’s Injury and Illness Prevention Program (IIPP). The budget provides for premiums as well as operating funds for legal and other cost resulting from claims against the City.

The City is a member of the PLAN JPA (Pooled Liability Assurance Network Joint Powers), which is comprised of 28 greater Bay Area municipalities and is currently administered by Sedgwick staff under the direction of a Board of Directors, represented by its member cities. The Administrative Services Director is a member of the PLAN JPA Board of Directors.

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The City’s Workers Compensation program is self-funded through membership in a five-city JPA (Joint Powers Authority – The Cities Group). The JPA was formed to administer workers compensation and safety programs. The Cities Group programs are augmented by Citysponsored training, a City-wide safety committee, and workplace injury prevention assessments.

Fiscal Year 2021-2022 Accomplishments
• Maintained financial stability despite uncertain economic conditions due to the ongoing pandemic.
• Developed a Covid Response Plan and Vaccine Mandate under OSHA guidelines, to assist with City protocols which ensured staff safety.
• Updated ergonomics assessments process to assist with employees who are telecommuting and working from a home office. Received Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the FY 20-21 Operating and Capital Budget documents, representing compliance with best practices in budgeting.
• Completed annual audit, prepared the City’s Annual Comprehensive Financial Report (ACFR), and received a clean audit opinion from the independent auditors. • Completed mandated State Controller’s and other financial reports in a timely manner. • Decommissioned aging network infrastructure improving reliability and security.2019. • Completed the migration to Microsoft 365 providing greater efficiency, integration, security, ease of use, and reliability.
• Negotiated a five-year memorandum of understanding with City’s labor groups. • Held regular meetings of the City’s Executive Risk Management Committee to provide oversight, coordination, and direction for the City’s safety and risk management programs.
• Continues enrollment of new employees and maintained records for current employees in the DMV Pull Notice Program to comply with vehicle operations policy and best practices.
• Continues to review risk management and safety policies and procedures to ensure the City’s compliance with risk management best practices framework and eligibility for grants.
• Completed the construction and installation of High-Speed internet connectivity at the City Corporation Yard facility to better support technology related components of the Corporation Yard construction project.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Continue to utilize the partnership with San Mateo County Training Center to provide a broader spectrum of local training options/opportunities for City staff. Working with City administration and labor groups, continue revising the City’s Personnel Policies and Procedures (Inclusive Governance).
• Update training matrix to ensure compliance with California and Federal law (Healthy Communities and Public Safety).

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• Protect the City’s financial sustainability through the systematic monitoring and reporting of the City’s financial condition; identify and evaluate potentialsources of new revenues and cost savings programs. (Fiscal Sustainability, Inclusive Governance) • Support the City Council’s Strategic Plan Elements and Initiatives as they relate to the City’s Financial Operations (Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, Inclusive Governance). • Continue to upgrade and streamlining of outdated technology systems providing improved reliability and security of key City systems.
• Finalize the migration and updating of legacy database and support systems to cloud based services, improving security and resilience.
• Implement Phase 1 of technology replacement program to decommission and replace aging technology infrastructure
• Develop and initiate the City public portal modernization plan to improve public access and streamline City processes.
• Research and complete a Request for Proposal for the City’s business license and transient occupancy tax (TOT) intake and payment provider. • Research and possibly implement improvements to City internet infrastructure to improve reliability and harden City technology resources and community support during emergencies.
• Support the City Council’s Strategic Elements and Initiatives as they relate to the City’s Risk Management Program (Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, Inclusive Governance). • Comply with OSHA standards, regulations, and requirements and update the City’s Injury and Illness Prevention Program for each worksite. Provide training on the IIPP to each department. (Healthy Communities and Public Safety). • Continue to provide citywide training for employees and supervisors on Risk Management Program, including general liability and workers compensation procedures (Fiscal Sustainability, Inclusive Governance, Healthy Communities and Public Safety). • Continue the management of the City’s Workers' Compensation Program including implementing cost containment and control methods and expanding the injury prevention activities to improve our cost containment efforts. Conduct study to update essential functions of City’s classifications. (Fiscal Sustainability, Inclusive Governance,). • Continue to efficiently manage claims and seek recovery of costs when actions of a thirdparty cause damages to City property (Healthy Communities and Public Safety, Fiscal Sustainability).
• Continue to identify and reduce risks to the City (Healthy Communities and Public Safety, Fiscal Sustainability).

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Performance & Workload Measures
Finance
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Maintain accurate and timely financial records and reports Deliver the Annual Comprehensive Financial Report by end of December Yes Yes Yes Yes Percentage of checks and receipts processed without errors 97% 98% 98% 99% Provide financial support to other departments
Percentage of purchase orders issued within 7 days n/a n/a 80% 99% Workload Measures
Number of invoices processed 2,628 2,638 3,064 3,100
Number of receipts processed 2,762 2,082 3,380 3,400
Human Resources
Core Service and Measure
2019
Actuals
2020
Actuals
2021
Estimated
2022
Projected
Recruitments
Applicants 312 90 112 150
New Hires 13 1 2 6
Information Technology
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Maintain Performance & Security of all technology infrastructure Support tickets completed Not avail 193 163 150
Outdated systems updated or decommissioned to retain security 0% 17% 63% 100% Percent of Systems updated in line with technology improvement plan N/A 100% 240% 100% Innovation and User Experience improvements
Systems/Services updated for usability & accessibility improvements (e.g., Legacy to Cloud, Software updates, Interface updates, etc.) 0 3 11 17
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265

ADMINISTRATIVE SERVICES
101-230

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 146,788 118,004 97,714 103,149
Materials & Supplies 6,042 3,404 5,000 5,000
Contract Services 171,848 61,217 65,046 60,320
Transfers / Allocations Out 11,830 1,755 14,531 11,693
Division Total 336,507 184,380 182,291 180,162

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 336,507 184,380 182,291 180,162
Division Total 336,507 184,380 182,291 180,162

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Administrative Services Director - - -
Senior Management Analyst - 0.50 0.25 0.25
Management Analyst 0.75 -
Administrative Assistant 0.50 0.50 0.50 0.50
FTE Total 1.25 1.00 0.75 0.75
-
50 100
150
200
250
300
350
400
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
266

ADMINISTRATIVE SERVICES
101-230

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 146,788 118,004 97,714 103,149 6101 General Supplies 2,804 197 - -
6201 Training/Meetings 1,056 - - -
6202 Memberships, Dues & Subscriptions 2,183 3,207 5,000 5,000 6301 Contract Services (Non-Govt) 133,247 6,423 20,000 20,000 6401 Other Rental 33,688 39,813 36,750 40,320
6405 Combined Utilities 4,914 14,981 - -
6408 Utilities-Other - - 8,296 -
7201 General Transfers Out 11,830 1,755 - -
7203 Vehicle ISF - - 2,204 413
7204 Equipment Fund ISF - - 5,556 5,116
7205 Risk Management ISF - - 6,771 6,164
Division Total 336,507 184,380 182,291 180,162

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund Contribution 336,507 184,380 182,291 180,162 Division Total 336,507 184,380 182,291 180,162

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6200-6299 Training & Memberships
6300-6399 Contract Services
6400-6499 Utilities
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Training, licensing and professional memberships for staff. No change is included.

Ad hoc services such as specialized IT support and consulting is charged here.

There is no change to this category.

Rent and utilities specifically from the Annex location are charged here. A slight decrease is included as a portion of utilities were consolidated under the Draft
IT budget.
267

FINANCE
101-210

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 525,809 570,960 656,958 698,987
Materials & Supplies 8,591 4,803 6,500 9,500
Contract Services 269,751 207,384 161,802 162,500
Transfers / Allocations Out 44,674 3,628 71,271 60,453
Division Total 848,825 786,774 896,531 931,440

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Other Revenue 1,894 50 - -
General Fund 846,931 786,724 896,531 931,440
Division Total 848,825 786,774 896,531 931,440

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Administrative Services Director 0.60 0.60 0.60 0.60
Finance Manager - - 0.80 0.80
Senior Accountant 1.00 1.00 - -
Senior Management Analyst 0.70 0.50 0.25 0.25
Administrative Assistant 0.50 0.50 0.50 0.50
Accounting Technician 2.75 1.75 2.50 2.60
FTE Total 5.55 4.35 4.65 4.75
-
100
200
300
400
500
600
700
800
900
1,000
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
268

FINANCE
101-210

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 525,809 570,960 656,958 698,987 6101 General Supplies 1,975 2,375 1,500 2,500
6201 Training/Meetings 4,441 155 3,000 5,000
6202 Memberships, Dues & Subscriptions 2,174 2,273 2,000 2,000 6301 Contract Services (Non-Govt) 237,113 153,406 18,500 18,500 6302 Contract Services (Govt) 3,099 6,409 6,500 1,000
6303 Advertising Costs 176 - - -
6309 Credit Card Fees 24,179 19,429 13,802 20,000
6320 Professional Services - - 60,000 60,000
6322 Auditing Services - 19,192 53,000 53,000
6601 Property Tax Admin 4,830 8,947 10,000 10,000
6699 Miscellaneous Expense 355 - - -
7201 General Transfers Out 44,674 3,628 - -
7203 Vehicle ISF - - 10,809 2,137
7204 Equipment Fund ISF - - 27,251 26,450
7205 Risk Management ISF - - 33,211 31,866
Division Total 848,825 786,774 896,531 931,440

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4902 Miscellaneous Revenue 1,894 50 - -
General Fund Contribution 846,931 786,724 896,531 931,440 Division Total 848,825 786,774 896,531 931,440

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases and more staff time allocated.

Various office supplies and materials to support finance operations.

Training, licensing and professional memberships for staff. No change included.

Costs include auditing services, TOT and Business License management, credit Draft
card processing fees. A slight decrease from the year prior. 269

HUMAN RESOURCES
101-220

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 87,617 26,942 105,743 172,835
Materials & Supplies 18,513 16,915 17,416 19,416
Contract Services 36,896 41,927 84,339 84,339
Transfers / Allocations Out 15,747 2,564 14,026 19,197
Division Total 158,772 88,349 221,524 295,787

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund 158,772 88,349 221,524 295,787
Division Total 158,772 88,349 221,524 295,787

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Administrative Services Director - - - -
Management Analyst 0.80 - 0.90 0.90
Accounting Technician - 0.25 0.50 0.40
FTE Total 0.80 0.25 1.40 1.30
-
50 100
150
200
250
300
350
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
270

HUMAN RESOURCES
101-220

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 87,617 26,942 105,743 172,835 6101 General Supplies 4,240 6,490 2,060 2,060
6104 Employee Engagement 1,355 481 5,356 5,356
6201 Training/Meetings 4,936 1,450 5,000 5,000
6202 Memberships, Dues & Subscriptions 7,981 8,494 5,000 7,000 6301 Contract Services (Non-Govt) 26,824 36,026 25,000 55,000 6310 Hiring Costs 10,072 546 28,000 28,000
6325 Legal Counsel - 5,355 30,000 -
6405 Combined Utilities - - 1,339 1,339
7201 General Transfers Out 15,747 2,564 - -
7203 Vehicle ISF - - 2,127 679
7204 Equipment Fund ISF - - 5,363 8,400
7205 Risk Management ISF - - 6,536 10,119
Division Total 158,772 88,349 221,524 295,787

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
General Fund Contribution 158,772 88,349 221,524 295,787 Division Total 158,772 88,349 221,524 295,787

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Supplies and materials to support human resource functions. No change is included.

Training, licensing and professional memberships for staff. A slight increase is included.

Costs include recruitment expenses, hiring costs, and labor related legal Draft
counsel as needed. No change is included.
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EQUIPMENT & INFORMATION TECHNOLOGY FUND
FUND 302
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 7,971 4,672 5,050 3,500
4630 Miscellaneous 7,720 (7,432) - -
TOTAL REVENUE 15,692 (2,760) 5,050 3,500

EXPENDITURES
Salaries & Benefits - 11,747 76,484 97,569
Materials & Supplies 39,970 37,658 38,000 91,000
Contract Services 336,647 278,784 370,000 340,751
DEP Depreciation 16,161 16,161 23,000 16,161
TOTAL EXPENDITURES 392,778 344,349 507,484 545,481

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From All Funds 423,325 612,014 515,728 545,481
NET TRANSFERS 423,325 612,014 515,728 545,481
46,239 264,905 13,294 3,500
BEGINNING NET ASSETS 567,728 613,967 878,871 838,000
ENDING NET ASSETS 613,967 878,871 892,165 841,500

NET CHANGE TO NET ASSETS
Note: The presentation above reflects a Net Assets basis of presentation. In the Equipment Fund, Net Assets primarily include capitalized equipment and cash.

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INFORMATION TECHNOLOGY
302-240

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits - 11,747 76,484 97,569
Materials & Supplies 28,003 28,462 27,000 80,000
Contract Services 336,242 278,784 370,000 340,751
Transfers / Allocations Out - - - -
Division Total 364,246 318,992 473,484 518,320

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 364,246 318,992 473,484 518,320 Division Total 364,246 318,992 473,484 518,320

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Administrative Services Director 0.05 0.05 0.05 0.05
Senior Management Analyst - - 0.50 0.50
Management Analyst 0.10 - -
FTE Total 0.15 0.05 0.55 0.55
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
273

INFORMATION TECHNOLOGY
302-240

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits - 11,747 76,484 97,569
6101 General Supplies 3,225 326 5,000 -
6105 Equipment Supplies 24,779 28,136 22,000 80,000
6301 Contract Services (Non-Govt) 336,242 278,784 11,000 45,227 6323 Desktop / IT Support - - 180,000 200,000
6324 Software Subscription - - 179,000 62,500
6408 Utilities-Other - - - 33,024
Division Total 364,246 318,992 473,484 518,320

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 364,246 318,992 473,484 518,320 Division Total 364,246 318,992 473,484 518,320

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6300-6399 Contract Services
Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Costs mainly include various equipment replacement and IT related supplies.

Increase is included to replace aging equipment.

Contracts include desktop and help desk support for all city workstations, ongoing subscriptions related to the Economic Resource Planning (ERP) system, and various software licenses such as Microsoft and Adobe.

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RISK MANAGEMENT
FUND 303
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 54,893 31,133 23,600 22,000
4630 Miscellaneous 43,439 (41,670) - -
TOTAL REVENUE 98,332 (10,537) 23,600 22,000

EXPENDITURES
Salaries & Benefits 94,068 111,509 152,370 159,192
Materials & Supplies 2,218 4 16,274 16,274
Contract Services 291,643 308,067 481,697 481,697
Capital Projects - - - -
SET Litigation Contingency - - 300,000 300,000
TOTAL EXPENDITURES 387,928 419,579 950,341 957,163

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From All Funds 625,334 500,000 628,530 657,163
NET TRANSFERS 625,334 500,000 628,530 657,163
335,737 69,883 (298,211) (278,000)
BEGINNING NET ASSETS 2,043,721 2,379,458 2,449,342 2,597,000 ENDING NET ASSETS 2,379,458 2,449,342 2,151,131 2,319,000

NET CHANGE TO NET ASSETS
Note: The presentation above reflects a Net Assets basis of presentation. In the Risk Management Fund, Net Assets primarily represents cash less claim liabilities.

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GENERAL LIABILITY
303-250

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 93,780 110,342 152,370 159,192
Materials & Supplies 18 - 8,137 8,137
Contract Services 216,704 288,698 403,604 403,604
Transfers / Allocations Out - - - -
Division Total 310,501 399,039 564,111 570,933

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 310,501 399,039 564,111 570,933 Division Total 310,501 399,039 564,111 570,933

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
City Manager 0.05 0.05 0.05 0.05
Deputy City Manager 0.05 0.05 0.05 0.05
Administrative Services Director 0.30 0.30 0.30 0.30
Finance Manager - - 0.10 0.10
City Clerk / Communications Director 0.05 0.05 0.05 0.05 Management Analyst - - 0.10 0.10
Senior Management Analyst 0.30 - -
Accounting Technician 0.10 - - -
FTE Total 0.85 0.45 0.65 0.65
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
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GENERAL LIABILITY
303-250

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 93,780 110,342 152,370 159,192 6101 General Supplies 18 - 8,137 8,137
6301 Contract Services (Non-Govt) 34,911 35,940 77,523 77,523 6305 Liability Insurance 181,792 248,451 326,081 326,081 6325 Legal Counsel - 4,307 - -
Division Total 310,501 399,039 564,111 570,933

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 310,501 399,039 564,111 570,933 Division Total 310,501 399,039 564,111 570,933

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6300-6399 Contract Services
Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Office supplies to support the division. There is no change to this category.

General liability member contributions and various claims are charged here.

No change is included.

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WORKERS' COMPENSATION
303-260

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 1,531 - - -
Materials & Supplies 2,200 4 8,137 8,137
Contract Services 47,201 19,341 78,093 78,093
Transfers / Allocations Out - - - -
Division Total 50,932 19,345 86,230 86,230

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 50,932 19,345 86,230 86,230 Division Total 50,932 19,345 86,230 86,230

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Management Analyst 0.10 - - -
FTE Total 0.10 - - -
-
10 20
30 40
50 60
70 80
90 100
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
278

WORKERS' COMPENSATION
303-260

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 1,531 - - -
6101 General Supplies 2,200 4 8,137 8,137
6301 Contract Services (Non-Govt) 2,960 - 53,045 53,045 6305 Liability Insurance 9,751 10,357 25,048 25,048
6607 Claims Liability 34,490 8,984 - -
Division Total 50,932 19,345 86,230 86,230

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Contribution from Other Funds 50,932 19,345 86,230 86,230 Division Total 50,932 19,345 86,230 86,230

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
6100-6199 Supplies & Materials
6300-6399 Contract Services
Explanation
Office supplies to support the division. There is no change to this category.

Workers' compensation charges and long-term disability charges are charged here. No change is included.

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CITY OF HALF MOON BAY
Public Safety
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Public Safety
Core Services
The core services of the Public Safety Department support the partnership with City departments and the community to protect life and property, enhance health and safety, and improve the quality of life of all residents, businesses, and visitors to Half Moon Bay.

Description
The City contracts with the County of San Mateo Sheriff’s Office for law enforcement services including regular patrols, dispatch responses to emergency and 911 calls, investigative services, community policing, and specialized law enforcement services as needed. The San Mateo County Sheriff's Office is dedicated to the preservation of public safety by providing innovative and progressive service in partnership with the Half Moon Bay community. Animal control services are also provided through the County.

Service Priorities
• Deliver 24-hour emergency response
• Coordinate emergency preparedness efforts
• Detect and reduce crime
• Enforce traffic laws
• Manage records and reporting
• Provide community policing
• Assist in coordinating the annual Youth Summit
• Coordinate the Sheriff’s Activity League on the Coastside Staffing
The Public Safety budget consists of key contracts for services with San Mateo County for law enforcement, 911 dispatch, animal control, emergency services, and contracts with agencies that provide other related services such as citation processing.

Service Level Changes
All services will remain the same.

Budget Highlights / Summary of Changes
The Law Enforcement budget includes an annual cost of living adjustment.

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Fiscal Year 2021-22 Accomplishments
• In partnership with the Sheriff’s Office CARON group, hosted several Coastside events. • Coordinated with the Sheriff’s Psychiatric Emergency Response Team (PERT) to reduce tragic outcomes, divert hospitalization and incarceration, reduce recidivism, and connect those with mental illness and addiction to community resources. • Collaborated in the launch of the Crisis Assistance Response and Evaluation Services (CARES) program, providing resources, training, and coordination to ensure safe response to mental health crises.
• Continued the Empowering Young Women Group to engage and facilitate positive outcomes in young women.
• Continued work with the Homeless Outreach Team to address homeless issues. • Participated in Gang Task Force with deployments to Half Moon Bay. • Participated in San Mateo County Saturation Traffic Enforcement Program (STEP) with deployments to Half Moon Bay.
• Increased traffic enforcement during high peak weekends and holidays. • Hosted an open house and ribbon cutting community event for the newly remodeled Half Moon Bay substation.

Fiscal Year 2022-23 Goals / Strategic Plan Elements
• Continue to make community policing a priority and generate additional community events (Healthy Communities and Public Safety).
• Participate in additional community engagement meetings to build trust and learn from the residents’ interactions with law enforcement. (Healthy Communities and Public Safety).
• Partner with several community groups in order to strengthen communication, transparency, and trust (Healthy Communities and Public Safety). • Continue to support the CARES and PERT teams to ensure safe outcomes in response to mental health crises.
• Coordinate with City staff and regional partners on creating and implementing Emergency Preparedness Plans, including the annual summer beach plan and traffic (Healthy Communities and Public Safety).
• Continue to work with the City and regional partners regarding homeless issues (Healthy Communities and Public Safety).
• Participate in the Gang Task Force (Healthy Communities and Public Safety). • Utilize the Sheriff’s Office Bicycle Unit and Off-Road Motorcycle Unit to patrol coastal trails, Poplar Beach, and other coastal areas. (Healthy Communities and Public Safety). • Continue traffic enforcement in order to decrease accidents by utilizing the Sheriff’s Office Motorcycle Unit and Half Moon Bay patrol staff (Healthy Communities and Public Safety).
• Educate and disseminate prevention information regarding phone scams, burglary trends, and other crimes of opportunity (Healthy Communities and Public Safety).

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PUBLIC SAFETY
101-310

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits - - - -
Materials & Supplies - 639 1,000 1,000
Contract Services 3,829,799 4,187,688 4,414,492 4,818,699 Transfers / Allocations Out 147,937 105,835 - -
Division Total 3,977,736 4,294,162 4,415,492 4,819,699

DIVISION REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Taxes 21,275 31,816 25,800 29,600
Charges for Services 159,631 112,651 108,634 82,885
Other Revenue 556,649 1,797,892 1,003,202 660,198
General Fund 3,240,181 2,351,803 3,277,856 4,047,016
Division Total 3,977,736 4,294,162 4,415,492 4,819,699

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
FTE Total 0.00 0.00 0.00 0.00
-
1,000
2,000
3,000
4,000
5,000
6,000
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
285

PUBLIC SAFETY
101-310

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits - - - -
6101 General Supplies - 639 1,000 1,000
6202 Memberships, Dues & Subscriptions - - - -
6301 Contract Services (Non-Govt) 48,371 18,054 25,000 35,000 6302 Contract Services (Govt) 3,781,408 4,165,337 20,000 - 6317 Animal Control - - 126,905 121,911
6318 Sheriff Patrol - - 3,942,950 4,352,084
6319 Other Sheriff Services - - 265,912 275,804
6405 Combined Utilities 20 4,297 - -
6408 Utilites - Other - - 3,500 3,675
6610 JPA/District Contributions - - 30,225 30,225
7201 General Transfers Out 147,937 105,835 - -
Division Total 3,977,736 4,294,162 4,415,492 4,819,699

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4131 Sales & Use Tax - 6,268 - -
4136 Public Safety Sales Tax 21,275 25,548 25,800 29,600 4202 Alarm Fees 6,900 - 7,000 5,300
4203 P.D. Permit Special Revenue 11,733 2,863 - 706
4301 Fines & Forfeitures 140,238 108,937 100,000 76,428 4302 Abandoned Vehicle Abatement - - - -
4411 Investigation & Report 760 851 1,634 451
4902 Miscellaneous Revenue 556,649 1,797,892 390,585 -
4903 Reimbursed Expenses - - 612,617 660,198
General Fund Contribution 3,240,181 2,351,803 3,277,856 4,047,016 Division Total 3,977,736 4,294,162 4,415,492 4,819,699

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6300-6399 Contract Services
6400-6499 Utilities
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance. Since this department contains no staff personnel, there are no internal service charges.

Explanation
All salaries and benefits are budgeted in these line items. Patrol services are contracted out thus no salary charges are budgeted.

Supplies only are for the mailing and renewing of alarm permits as issued by the City.

Services budgeted here include patrol services, animal control, 911 dispatch and narcotics task force support. Increases are primarily due to rising costs in these existing contracts.

A small portion of the utilities generated at the Sheriff station are charged here. A slight increase to cover those costs.

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CITY OF HALF MOON BAY
Public Works
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City
Manager
Public Works
Director
Public Works Department
Public Works
Program
Manager
Public Works
Superintendent
City
Engineer
CIP
Engineering
[Contract]
Associate
Engineer
Associate
Engineer
CIP
Engineering
[Contract]
CIP
Engineering
[Contract]
Sustainability
Management Analyst
Administrative
Assistant
Senior Maintenance
Worker
Senior Maintenance
Worker
Maintenance
Worker
Maintenance
Worker
Maintenance
Worker
Maintenance
Assistant
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Public Works
Core Services
The core services of the Public Works Department promote safety, livability, and sustainability through effective management of streets, parks, facilities, and utilities. The department is also dedicated to excellence, integrity, and environmental stewardship.

Vision
Making Half Moon Bay the premier place to vivir (live), trabajar (work) and jugar (play)! Description
The Public Works Department coordinates and manages maintenance, replacement, and enhancement of City infrastructure, including streets, streetlights, street and regulatory markings and signage, medians, parkways, the storm water collection and conveyance system, the sewer collection system, parks and trails, as well as public facilities. The department develops, manages, and implements the City’s Five-Year Capital Improvement Program (CIP), reviews private development applications, coordinates with Caltrans on Highways 1 and 92, manages and oversees the City’s solid waste franchise agreement, develops and implements sustainability programs, and ensures private and public compliance with local, state, and federal regulations, including the Federal Clean Water Act, National Pollutant Discharge Elimination System, and the endangered species acts. The department also serves as liaison to the Sewer Authority MidCoastside (SAM), City County Association of Governments (C/CAG), the Metropolitan Transportation Commission (MTC), Caltrans and other agencies.

Service Priorities
• Protect and enhance the public health, safety, and welfare of the community. • Maintain critical City infrastructure, parks, trails, and public facilities. • Develop and implement the City’s Five-Year Capital Improvement Program (CIP). • Implement preventive maintenance efforts where possible to reduce pre-mature and costly replacement.
• Implement complete streets and neighborhood traffic calming to enhance quality of life in existing and new neighborhoods.
• Encourage multi-modal transportation, traffic management and transportation demand management strategies.
• Incorporate green infrastructure, watershed management, and habitat enhancement / protection into capital infrastructure planning and design efforts. • Identify and implement sustainability programs.
• Maintain City compliance with CalRecycle.
• Monitor and manage the City’s 10-year solid waste franchise agreement.

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Staffing
The Public Works Department consists of a Director, the City Engineer, Public Works Superintendent, Senior Management Analyst, Management Analyst, Associate Engineer, Assistant Engineer, Administrative Assistant, two (2) Senior Maintenance Workers, four (4) Worker l/II positions, a Maintenance Assistant, a part time contract sewer engineer, a 20-hour contract Public Works Inspector and one (1) part time contract traffic engineer for management of capital projects.

Service Level Changes
The department was formed in FY 2017-18 through reorganization of the former Community Development Department and merger of the Public Works-Facilities Maintenance Division and Sewer System Operations from the City Manager’s Office. In the following years, the City added five (5) Maintenance Worker I/II positions bringing the total number of maintenance workers back to the pre-2008 recession levels. The City also brought engineering services in-house and created the Management Analyst position dedicated to sustainability. As part of the FY 2021-22 mid-year budget review, one maintenance position that was frozen in response to Covid-19 was added back to the department. This position is being recruited at the Maintenance Assistant level to improve weekend coverage.

Budget Highlights / Summary of Changes
The department budget includes funding for personnel-related costs, increased costs for consultant services, and materials and support for departmental programs. With the budget proposed for FY 2022-23, the department will seek to maintain current levels of service, expand the City’s preventative maintenance efforts, and increase the City’s outreach and education efforts around sustainability.

The Department is comprised of the following divisions:

Administration
Core Services
The core services of the Administration division provide support to each of the other four divisions: 1) Engineering, 2) Maintenance, 3) Sustainability, and 4) Sewer. Duties include administrative tasks including managing the Public Works hotline, executing contracts, and processing invoices to ensure each division is able to fulfill their respective duties to protect public health, safety, welfare, and improve the quality of life of residents and visitors alike.

Description
The Administration division serves as the primary point of contact for the City Manager, City Council, Sewer Authority Midcoast, and other departments and agencies. The division generally serves as the Public Information Officer (PIO) for issues pertaining to Public Works and coordinates special purpose committees including the Bicycle/Pedestrian Advisory Committee (BPAC). The division is responsible for preparing the City’s Five-Year Capital Improvement Draft
290
Program (CIP), the Capital Budget, and the Public Works operating budget. It also oversees public procurements and accounts receivable for the department.

Fiscal Year 2021-2022 Highlights
• Secured a $129k Transportation Fund for Clean Air (TFCA) grant to implement bicycle and pedestrian improvements in the downtown corridor.
• Coordinated the City’s first Project Management Training Series. • Initiated Facilities Master Plan for Smith Field.
• Sought grants to improve multi-modal transportation on the Coastside, with an emphasis on the Eastside Parallel Trail North -Segment 2 project at Frenchman’s Creek.

Engineering
Core Services
The core services of the Engineering division protect public health and safety and improve the quality of life of residents and visitors by ensuring safe and functional streets, bridges, intersections, and infrastructure that is designed, inspected, and maintained in accordance with the City Council approved Five-Year Capital Improvement Project (CIP), best practices and applicable local, state, and federal regulations and laws.

Description
The Engineering division is responsible for review of private development, issuance of applicable permits, assisting with environmental reviews, coordination with other divisions/departments, consultant engineers, and other utility providers in the design and construction of new public and privately funded projects and infrastructure. The division serves as lead on the preparation of studies and master plans of the City’s streets, buildings and grounds, sewage, and drainage systems. The division identifies capital improvement needs in consultation with other divisions and departments, coordinates with non-City utility providers on design and implementation of the CIP, and oversees design, permitting, bidding, bid award, and construction of projects identified in the CIP. The division is also responsible for managing the Traffic Safety Committee, related traffic safety regulations.

Fiscal Year 2021-2022 Highlights
• Completed major CIP projects including the Highway 1 Safety – South project and the Sheriff Substation Renovation project.
• Awarded construction contract and initiated construction of Carter Park Renovation project.
• Completed design, obtained entitlements and awarded construction contract for Phase 1 of the City Corporate Yard Improvements project.
• Designed, bid and awarded construction contract for Kelly Avenue Crosswalks project (Pilarcitos Avenue and Alsace Lorraine).
• Finalized design of the Highway 1 Safety – North project.

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• Finalized design and environmental work on Eastside Parallel Trail North (Segment 4), including coordination with County on northerly extension. • Completed CDP process and initiated work toward 95-percent design on Poplar Street Traffic Calming and Safety project.
• Collaborated with Community Development on the Poplar Gateways Plan. • Continued discussions with SamTrans and San Mateo County Transit District to improve Coastside transit options.
• Continued to work with Sheriff, Highway Patrol and Caltrans on ways to improve traffic flow on the Coastside with emphasis on summer, weekends and special events.

Maintenance
Core Services
The core services of the Maintenance division proactively maintain and enhance City streets, parks, trails, facilities, and infrastructure to ensure compliance with local, state, and federal laws, and continued functional and safe operations and use.

Description
The Maintenance division provides seven day a week, 24 hour a day cost-effective and timely maintenance of City utilities including the sewer collection system, storm drain system, streets, sidewalks, street trees, trails/paths, and parks, as well as City-owned and operated buildings to enhance and protect the health, safety, and welfare of residents and visitors alike.

Fiscal Year 2021-2022 Highlights
• Managed various contract service providers including janitorial, pest control, tree maintenance and portable toilets.
• Continued operation of LEED Certified Library facility including coordination of work by PG&E on temporary generator connection.
• Completed installation of timer door locks at Train Depot restrooms, Mac Dutra and Oak Avenue Park
• Completed installation of new Frenchman’s Creek playground equipment and rubberized surface.
• Completed installation of new rubberized surface at Oak Avenue Park. • Initiated work (supply chain issues) with new Ocean View Park play equipment. • Initiated work on design of Frenchman’s Creek Park Phase 2 project. • Replaced skylights at City Hall.

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Sustainability
Core Services
The core services of the Sustainability division help the City become a leader in environmental sustainability by establishing policies, implementing projects, and creating programs that decrease the City’s environmental impact and carbon footprint.

Description
The division is responsible for identification, assessment, and implementation of sustainability programs, including development of the Sustainability Implementation Plan, writing, adopting and implementing the Climate Action and Adaptation Plan, and oversight of the solid waste franchise agreement. The division collaborates and coordinates projects and programs with other City departments and community partners to provide diverse public outreach and education opportunities. Additionally, the division manages the Coastal Clean-up contract with Abundant Grace as well as coordinates beach clean-up efforts.

Fiscal Year 2021-2022 Highlights
• Prepared, adopted, and/or revised City’s Municipal Code to incorporate new building electrification requirements, PV/EV requirements, and mandated SB 1383 programs. • Operated a Beverage Container Redemption Pilot Project behind CVS in Strawflower Village utilizing secured grant funds from CalRecycle.
• Created the Climate Loteria game to assist in developing the City’s first Climate Action and Adaptation Plan (CAAP).
• Updated the community Greenhouse Gas (GHG) inventory report. • Initiated work on the Ocean Colony Sea Level Rise and Economic Impact analysis. • Implemented the County’s first disposable food ware ordinance. • Hosted two community recycling days offering free paper shredding, compost pick-up, and e-waste recycling.
• Adopted revised Sustainable Purchasing and Practices Policy via City Manager approval. • Expanded and maintained the sustainability resources on the City’s website. • Coordinated a permanent sharps collection program at the Coastside Fire District. • Continued to manage the 10-year solid waste franchise agreement with Republic Services. • Managed the 4th annual Earth Day Essay Contest.
• Participated in Chamber’s Earth Day event.
• Continued to partner with Abundant Grace on the Coastal Clean Team and expanded the program.
• Continued a “pack it in, pack it out” educational campaign at Poplar Beach. • Partnered with San Mateo County and the City of Pacifica on a Coastside pet waste education and outreach program.
• Partnered with San Mateo County on an edible food recovery program and compost procurement and education program.
• Promoted programs and services provided by Commute.org.

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Sewer
Core Services
The core services of the Sewer division maintain the City’s sewer collection system, ensure continued functional and safe operations and use, and ensure compliance with local, state, and federal laws.

Description
The Sewer division provides cost-effective and timely maintenance of the City’s sewer collection system to enhance and protect the health, safety, and welfare of residents and visitors alike. The Public Works Director serves as principal liaison to SAM staff, the SAM Board of Directors and City SAM Board representatives as well as with the City’s contract FOG and collections maintenance quality control. The City Engineer coordinates with contract City Sewer Engineer on master planning, capital planning and on an “as-needed” basis.

Fiscal Year 2021-2022 Highlights
• Completed construction of the $2.8 million Ocean Colony Pump Station and Force Main project.
• Completed replacement of generator at Pelican Point Pump Station. • Completed draft Sewer Master Plan Update and updated the hydraulic model. • Managed the collection system maintenance contract with SAM. • Managed contract services with Mark Thomas Company on oversight of sewer collection system maintenance and implementation of FOG program.
• Initiated remediation and modernization of four sewer effluent flow monitors. • Managed SAM contract(s) and overall operations.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Update and prioritize the City’s Five-Year Capital Improvement Program for presentation and consideration by City Council.
• Complete capital projects designated for FY 2022-23 including Carter Park, Frenchmans Creek Park Phase 2, the City Corporation Yard and Coastal Trail Overlay projects. • Maintain storm water conveyance ditches annually in conformance with NPDES permit and the State Streambed Alteration Permit.
• Seek new State Streambed Alteration Permit due to impending expiration. • Continue work on State mandated TMDL Study for Venice Beach area. • Maintain and monitor sewer collection system in conformance with the City’s adopted Sewer System management Plan (SSMP) and State law.
• Continue to implement preventive maintenance program for public facilities and infrastructure.
• Coordinate and collaborate with Coastside emergency preparedness efforts.

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• Collaborate on the implementation of the ADA Transition Plan. • Monitor and manage the City’s 10-year Solid Waste Franchise Agreement. • Evaluate opportunities to enhance / expand parks, multi-use trails, and path opportunities. • Adopt the Climate Action and Adaptation Plan (CAAP) and begin implementation of identified projects and programs
• Complete sewer pump station replacement at Ocean Colony and other sewer collection system capital repairs and replacements.
• Initiate work on 10-Year Maintenance Plan for City trails and paths • Secure donor commitment for Smith Field, complete CDP process and construction design for funded portions of project.
• Complete design and initiate bids for Poplar Street Traffic Calming and Safety project and Highway 1 Safety – North project.

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Performance & Workload Measures
Administration
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Develop Budget and Capital Improvement Program
Prepare the Public Works Operating Budget by April Yes Yes Yes Yes Prepare the Capital Improvement Program by May Yes Yes Yes Yes Pursue and maintain grants for capital projects Yes Yes Yes Yes Provide contract and invoicing support
Execute contracts within 14 days of signed resolution 80% 85% 90% 90% Process invoices within 21 days of receipt 80% 85% 95% 95% Workload Measures
Number of major capital projects delivered 6 0 6 13
Number of grants applied for (and received) N/A (7) (9) 10 Engineering
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Provide private development support
Percentage of encroachment permits issued within 30 days 90% 90% 90% 90% Provide comments and review for CDP applications within 21 days 90% 90% 90% 90% Workload Measures
Number of encroachment permits issued 89 98 110 100
Number of CDP applications reviewed
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Maintenance
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Provide maintenance support to City-owned infrastructure Respond to emergency requests within 24 hours 100% 100% 100% 100% Respond to maintenance requests within 48 hours 92% 92% 95% 95% Provide scheduled janitorial service Yes Yes Yes Yes
Provide regularly scheduled maintenance Yes Yes Yes Yes Workload Measures
Regulatory signs replaced and/or maintained 220 240 190 210 Trees maintained (trimmed or removed) 70 80 65 75
Sustainability Division
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Manage the City’s Sustainability Initiatives
Present the updated Sustainability Implementation Plan to City Council by February
Yes Yes Yes Yes
Review the building electrification ordinance annually Yes Yes Yes Yes Manage the City’s Solid Waste Franchise Agreement and all state reporting and mandates
Yes Yes Yes Yes
Manage the City’s stormwater NPDES permit Yes Yes Yes Yes Workload Measures
Number of outreach events 25 14 11 19
Number of permits issued under electrification ordinance N/A N/A 0 15 Percent of trash captures and drainage inlets cleaned annually 100% 100% 100% 100% Draft
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Sewer
Core Service and Measure
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Provide maintenance support to City sewer collection system Respond to emergency requests and call outs within 24 hours 100% 100% 100% 100% Complete FOG inspections on schedule 90% 95% 95% 95%
Provide monthly collection system cleaning Yes Yes Yes Yes Provide annual CCTV inspections Yes Yes Yes Yes
Workload Measures
Number of FOG inspections (including reinspections) 97 81 80 80 Number of hot spots identified 113 143 77 85
Linear feet of sewer system cleaned annually (inclusive of multiple hotspot cleanings)
109,803 147,134
Linear feet of CCTV inspections 14,189 12,910 23,000 23,000 Draft
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PUBLIC WORKS ADMINISTRATION
101-410

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 353,479 390,959 479,656 527,295
Materials & Supplies 2,816 13,470 26,000 44,500
Contract Services 43,393 135,397 185,000 115,000
Transfers / Allocations Out 21,567 2,543 55,438 47,668
Division Total 421,255 542,368 746,094 734,463

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Other Revenue 60,000 68,627 103,590 86,105
Taxes - - 513,900 500,000
General Fund 361,255 473,741 128,603 148,358
Division Total 421,255 542,368 746,094 734,463

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Public Works Director 0.25 0.25 0.35 0.35
City Engineer 0.10 0.10 0.15 0.15
Senior Management Analyst 0.75 0.75 0.75 0.75
Management Analyst 0.70 1.00 1.00 1.00
Administrative Assistant 0.50 0.55 0.55 0.55
Maintenance Worker 0.10
FTE Total 2.40 2.65 2.80 2.80
Part-Time non benefited employees included: Intern (1,040 hours) -
100
200
300
400
500
600
700
800
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
299

PUBLIC WORKS ADMINISTRATION
101-410

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 353,479 390,959 479,656 527,295 6101 General Supplies - 10,667 20,000 20,000
6201 Training/Meetings 1,378 1,550 5,000 17,500
6202 Memberships, Dues & Subscriptions 1,438 1,253 1,000 7,000 6301 Contract Services (Non-Govt) 43,393 135,235 - -
6303 Advertising Costs - 162 - -
6320 Professional Services - - 160,000 115,000
6610 JPA/District Contributions - - 25,000 -
7201 General Transfers Out 21,567 2,543 - -
7203 Vehicle ISF - - 8,408 1,685
7204 Equipment Fund ISF - - 21,197 20,857
7205 Risk Management ISF - - 25,833 25,127
Division Total 421,255 542,368 746,094 734,463

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4140 Franchise Tax - Solid Waste - - 513,900 500,000
4141 BFI AB939 Fees - 51,627 78,590 81,105
4850 Grants 30,000 16,000 25,000 5,000
4902 Miscellaneous Revenue 30,000 1,000 - -
General Fund Contribution 361,255 473,741 128,603 148,358 Division Total 421,255 542,368 746,094 734,463

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
6600-6699 Other Expenses
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases and the addition of a part-time intern.

Supplies and materials to support Earth Day. No change is included.

Training, licensing and professional memberships for staff.

Majority of costs represents coastal cleanup efforts as performed by a contractor. Increase is from rising costs from this contract.

Costs include contribution to the Flood and Sea Level Rise District. City made its last payment in the prior year.

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ENGINEERING
101-420

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 357,573 222,712 343,878 354,314
Materials & Supplies 7,833 18,986 30,000 30,000
Contract Services 572,207 266,624 339,000 373,500
Transfers / Allocations Out 42,897 5,136 61,438 52,598
Division Total 980,509 513,458 774,316 810,412

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Charges for Services 239,455 97,748 72,000 125,000
General Fund 741,055 415,709 702,316 685,412
Division Total 980,509 513,458 774,316 810,412

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Public Works Director 0.15 0.15 0.15 0.15
City Engineer 0.45 0.30 0.50 0.50
Associate Engineer 0.25 0.10 0.15 0.15
Senior Management Analyst 0.10 0.10 0.15 0.15
Community Preservation Specialist - 0.10 0.10 0.10
Management Analyst 0.10 - -
Permit Technician 0.20 0.20 0.20 0.20
Assistant Engineer 0.80 0.40 0.65 0.65
Administrative Assistant 0.10 - -
FTE Total 2.15 1.35 1.90 1.90
-
200
400
600
800
1,000
1,200
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
301

ENGINEERING
101-420

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 357,573 222,712 343,878 354,314 6101 General Supplies 4,222 1,207 5,000 5,000
6105 Equipment Supplies - 12,461 5,000 5,000
6201 Training/Meetings 2,712 828 10,000 10,000
6202 Memberships, Dues & Subscriptions 899 4,490 10,000 10,000 6301 Contract Services (Non-Govt) 572,051 240,453 36,000 - 6303 Advertising Costs 156 - 4,000 4,000
6315 NPDES/Stormwater Compliance - 26,171 122,000 174,500 6316 Engineering Services - - 177,000 195,000
7201 General Transfers Out 42,897 5,136 - -
7203 Vehicle ISF - - 9,318 1,859
7204 Equipment Fund ISF - - 23,491 23,013
7205 Risk Management ISF - - 28,629 27,725
Division Total 980,509 513,458 774,316 810,412

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4421 Engineering Fees 239,410 96,020 72,000 125,000
4442 Planning Misc. Fees 45 - - -
4443 Zoning Fees - 1,728 - -
General Fund Contribution 741,055 415,709 702,316 685,412 Division Total 980,509 513,458 774,316 810,412

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Office supplies and materials to support the Engineering division. There is no change to this category.

Training, licensing and professional memberships for staff. No change included.

Costs only include specialized engineering plan reviews, NPDES compliance services and project management services. Increase primarily from rising Draft
NPDES costs and the increase in capital projects.
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MAINTENANCE
101-430

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 770,334 678,793 882,686 976,064
Materials & Supplies 167,409 134,089 159,000 205,000
Contract Services 921,237 838,440 966,000 922,072
Transfers / Allocations Out 65,791 21,323 172,612 145,973 Division Total 1,924,771 1,672,645 2,180,298 2,249,108

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Charges for Services 5,765 4,216 5,540 4,300
Other Revenue 169,985 353,782 350,000 379,158
General Fund 1,749,022 1,314,647 1,824,758 1,865,650
Division Total 1,924,771 1,672,645 2,180,298 2,249,108

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Public Works Director 0.25 0.20 0.20 0.20
Public Works Superintendent 0.55 0.55 0.80 0.80
Senior Maintenance Worker 1.60 1.60 1.60 1.60
Maintenance Assistant - 1.00 1.00
Maintenance Worker I 2.70 2.60 2.95 2.95
Senior Management Analyst 0.15 0.15 0.10 0.10
Management Analyst 0.10 - - -
Administrative Assistant 0.20 0.15 0.15 0.15
FTE Total 5.55 5.25 6.80 6.80
-
500
1,000
1,500
2,000
2,500
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
303

MAINTENANCE
101-430

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 770,334 678,793 882,686 976,064 6101 General Supplies 165,258 130,729 137,000 175,000
6107 Maintenance Signage - - 20,000 20,000
6201 Training/Meetings 986 3,361 2,000 10,000
6202 Memberships, Dues & Subscriptions 1,165 - - -
6301 Contract Services (Non-Govt) 606,295 481,091 45,000 100,000 6302 Contract Services (Govt) 4,500 4,496 5,000 -
6311 Building/Grounds Maintenance 61,886 53,496 15,000 40,000 6312 Equipment Maintenance 937 921 - -
6313 Janitorial Services - - 322,000 326,700
6314 Building/Grounds Maintenance - 3,758 228,000 155,800 6401 Other Rental 50,533 55,612 30,000 26,331
6405 Combined Utilities 194,334 238,444 - -
6406 Utilities - Electricity/Gas - - 181,800 100,800
6407 Utilities - Water - - 96,000 119,500
6408 Utilities - Other - - 43,200 52,941
6503 Vehicle Maint/Repair 2,751 623 - -
7201 General Transfers Out 65,791 21,323 - -
7203 Vehicle ISF - - 26,179 5,160
7204 Equipment Fund ISF - - 65,999 63,868
7205 Risk Management ISF - - 80,434 76,945
Division Total 1,924,771 1,672,645 2,180,298 2,249,108

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4431 Poplar Beach Parking Fees 5,765 4,216 5,540 4,300
4720 Charging Station 165,569 351,150 350,000 379,158
4902 Miscellaneous Revenue 4,416 2,632 - -
General Fund Contribution 1,749,022 1,314,647 1,824,758 1,865,650 Division Total 1,924,771 1,672,645 2,180,298 2,249,108

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
6400-6499 Utilities
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Parts and materials to upgrade, maintain and repair citywide facilities as performed by staff. Increase is anticipated as the prices of supplies increase.

Training, licensing and professional memberships for staff. Increase to support special licensing and training of maintenance staff.

Costs include citywide janitorial services, landscaping, pest control, vegetation, restroom portables, and smart trash receptacles. Increases are anticipated from rising costs in existing contracts.

Basic utilities for shared city facilities. Utilities such as electricity, gas, phone, internet and water.

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CITY OF HALF MOON BAY
Community Development
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City
Manager
Community
Development
Director
Community Development Department
Planning
Analyst
Chief Building Official
Building Inspector
Community
Development
Special Projects
Senior
Planner
Administrative
Assistant
Associate
Planner
Associate
Planner
Housing
Coordinator
Community
Preservation
Specialist
Permit
Technician
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Community Development
Core Services
The core services of the Community Development Department protect public health, safety, and welfare; enhance the community through long range and current planning; support affordable housing and economic development initiatives; and ensure building safety and code compliance while providing for inclusive and transparent planning and policy making processes that encourage community participation.

Description
The Community Development Department coordinates and manages the City’s developmentrelated functions: long-range planning, zoning, and building code updates, development and subdivision review, permit processing, building inspection services, and code compliance. The Department serves as a clearinghouse for housing and economic development services related to development. It also functions as the environmental coordinator for the City, ensuring compliance with the California Coastal Act, California Environmental Quality Act (CEQA), and the National Environmental Policy Act (NEPA).

The Department provides staff support to the City Council, Planning Commission, the Architectural Advisory Committee, and Bicycle and Pedestrian Advisory Committee; and monitors and participates with regional organizations including the City/County Association of Governments (C/CAG) and the Association of Bay Area Governments (ABAG). The Department also conducts environmental review and processes permits required for public projects including parks, streets, and other infrastructure improvements.

Service Priorities
• Implement the Local Coastal Program (LCP) and the California Coastal Act through protection of coastal resources and maximization of coastal access. • Implement the Housing Element and facilitate development of affordable housing. • Protect and enhance the public health, safety, and welfare of community members. • Create safe, livable, connected, and walkable neighborhoods. • Enhance employment and economic development opportunities for residents and businesses.
• Responsively support Councilmembers, Commissioners, the community, other agencies, and other City departments.

Staffing
The department consists of a Director, Senior Planner, Associate Planner, Assistant Planner (vacant), Administrative Assistant (vacant), Housing Coordinator (vacant), Permit Technician, Community Preservation Specialist, Part-Time Contract Building Official/Inspector, and PartTime Contract Planning Analyst.

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Service Level Changes
Increases to pre-covid levels in the professional services budgets are proposed. Position vacancies, continued heavy building permit volume, and increasing time spent on housing development warrant the increased budget to support City Council priorities, especially affordable housing.

Budget Highlights / Summary of Changes
The budget changes consist of personnel-related costs and contract services to cover staffing and related services. Staffing changes at the FY 2021-22 mid-year adjustment included creation of an Assistant Planner job description to underfill an open Associate Planner position; and a new Housing Coordinator position to support the expanding housing function. No staffing changes are proposed for FY 2022-23. The building and planning contract/professional services budget was originally reduced by $240,000 in the FY 2020-21 budget due to the COVID pandemic. This reduction was maintained in the FY 2021-22 budget. The reduced budget for contract building and planning services has caused a strain on staff which has been compounded by unfilled staff vacancies. The increasing demands of complex projects such as those required for the Housing Element and other housing activities require that the budget be restored, and vacancies filled to meet these demands. The proposed increases include an additional $45,000 for contract building services (for a total of $270,000) and an additional $150,000 (for a total of $375,000) for contract planning services. These increases will restore the building and planning contract services budgets close to pre-covid levels (to a total of $645,000 for FY 2022-23; compared to the FY 2019-20 budget of $698,000). Of note, much of the building contract services budget (all building inspections and plan check services) are covered by building permit revenues. Some of the planning contract services costs, such as environmental review, are passed applicants.

The department consists of two divisions:

Building
Core Services
The core services of the Building division protect public health and safety through the issuance of required building permits; and inspection of buildings, properties, and facilities in compliance with the California Building Standards, the Half Moon Bay Municipal Code, and other federal, state, and local requirements.

Description
The Building division staffs the City Hall front counter which coordinates intake of building, engineering, and planning permits, provides building plan check services, building inspection services, and zoning and other Municipal Code-related code compliance services. Division staff also provide responsive services including quick turn-around for inspections and certain overthe-counter permits for ministerial matters. Division staff spend significant time in the field and their firsthand knowledge of community conditions is essential to the department.

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Planning
Core Services
The core services of the Planning division protect public health and safety; support sustainable development, especially of affordable housing; safeguard coastal resources; and improve the quality of life of community members by ensuring residences, businesses, and other uses are developed and operated in accordance with the requirements of the LCP, Zoning Ordinance, General Plan, California Environmental Quality Act (CEQA), the Subdivision Map Act, State housing laws, and other applicable local, state, and federal laws and regulations.

Description
The Planning division serves residents and businesses by overseeing and implementing the City’s development-related regulations, LCP, and General Plan, in accordance with State law.

The division serves the City’s Planning Commission; whose role is to consider current development proposals and provide recommendations on land use policy matters to the City Council. The division also has primary responsibility in working with the Architectural Advisory Committee to ensure design of private development proposals and public projects are consistent with community character and aspirations for improving the built environment over time. Planning staff strive to provide professional, courteous, responsive, and accountable public service to the community, and to implement Council-directed policy regarding the City’s regulatory and environmental framework. The division works closely with the City Manager’s Office and Public Works Department.

Fiscal Year 2021-2022 Accomplishments
• Pursue Affordable Housing Development: Hired a housing consultant; put forth a request for qualifications for the City-owned 555 Kelly Avenue property; conducted a housing feasibility study of the City-owned 880 Stone Pine Road property; continued to work with San Mateo County Department of Housing, property owners, and developers on project concepts and for funding sources.
• Downtown Sidewalk and Parklet Activities Program: Planning Commission approved coastal development permit for new Town Center program (prepared wholly in-house by Public Works and Community Development staff).
• Main and Kelly: Completed planning entitlements for the Main and Kelly mixed-use development.
• General Plan Elements: Continued work on the Cycle 6 Housing Element update. • Measure D: Evaluated and ranked over 30 applications for measure D allocations, confirmed by the Planning Commission.
• ADU Ordinance: City Council adoption in August, Coastal Commission certification with modifications in February, City Council re-adoption in April. • Short-term Rental Ordinance: City Council adoption in August, Coastal Commission certification anticipated by the end of the fiscal year. • Public Projects: Provided planning review services for projects brought forward by the City (e.g. Magnolia Park) and other public agencies (e.g. Coastside County Water District Draft
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waterline replacement projects). Provided entitlement planning services for the Poplar Traffic Calming and Corporation Yard projects.
• Fire Safety and Environmental Protection: Coordinated with the Fire District to work with property owners regarding their responsibilities with respect to fuel load management and environmental regulations.
• Contract Management: Managed contracts for planning staffing services and project management support; managed the contract for building inspection, plan check and code compliance services.
• Grants: Received the REAP grant to support housing activities.

Fiscal Year 2022-2023 Goals / Strategic Plan Elements
• Pursue Housing Development: Continue efforts to build affordable housing on the Cityowned properties of 555 Kelly Avenue and other City properties. Continue to work with private property owners and developers including the new preliminary application for the Podesta project.
• General Plan Elements: Complete the Housing Element; initiate work on the Safety Element.
• Zoning Ordinance Updates: Initiate work on the Implementation Plan (Zoning and Subdivision Ordinances) for implementing the Land Use Plan and Housing Element. • City Projects: Continue to provide planning support for community engagement, project development, environmental review and entitlement of Public Works projects. Continue to assist Public Works in the annual review of the City’s Five-Year CIP document and ensure Planning Commission review of the capital projects for General Plan consistency and to provide entitlement and environmental review.
• Building Codes: Update the local building and fire code to incorporate the 2022 California Building Code; implement the City’s new sustainability ordinances including the Electrification Ordinance and the regulations for photovoltaic and electric vehicle charging stations.

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Performance & Workload Measures
Building
Property and Building Safety
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Investigate and resolve code violations
Investigate all code violation inquiries Yes Yes Yes Yes Workload Measures
Number of code violation cases meriting enforcement action *For FY 2021-22, 87 violations have been addressed or are in progress since March 31, 2022.
129 111 116* N/A
Number of Building Permits issued
*For FY 2021-22, 348 permits have been issued through March 31, 2022. 450 539 475* 500 Planning
Housing and Other Planning Entitlements
2019-20
Actuals
2020-21
Actuals
2021-22
Estimated
2022-23
Projected
Support development of a wide range of housing types
Utilize full capacity of Measure D No Yes Yes Yes
Workload Measures
Number of Public Meetings for planning entitlement review and other matters
*Includes Planning Commission, Architectural Advisory Committee and Community Development Director sessions.
32 48 41* 40
Number of Planning Permit applications received
*For FY 2021-22, 20 permit applications have been received through March 31, 2022; volume expected to increase following Measure D ratification.

Draft
97 86 85* 85
312

COMMUNITY DEVELOPMENT - ADMINISTRATION
101-730

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 292,716 358,080 368,492 421,379
Materials & Supplies 21,725 9,330 15,223 15,223
Contract Services 38,727 40,157 35,000 35,000
Transfers / Allocations Out 15,120 1,258 36,490 32,733
Division Total 368,288 408,825 455,205 504,335

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Charges for Services 400 100 - -
General Fund 367,888 408,725 455,205 504,335
Division Total 368,288 408,825 455,205 504,335

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Community Development Director 0.50 0.50 0.50 0.50
Senior Planner 0.20 0.20 0.20 0.20
Housing Coordinator - - 0.25 0.25
Associate Planner 0.20 0.20 0.10 0.10
Assistant Planner - - 0.10 0.10
Community Preservation Specialist - 0.20 0.30 0.30
Permit Technician 0.20 0.30 0.10 0.10
Administrative Assistant 0.30 1.00 1.00 1.00
FTE Total 1.40 2.40 2.55 2.55
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
313

COMMUNITY DEVELOPMENT - ADMINISTRATION
101-730

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 292,716 358,080 368,492 421,379 6101 General Supplies 3,079 3,985 4,223 4,223
6201 Training/Meetings 4,601 1,923 8,000 8,000
6202 Memberships, Dues & Subscriptions 14,045 3,422 3,000 3,000 6301 Contract Services (Non-Govt) 38,727 40,157 29,000 35,000 6302 Contract Services (Govt) - - - -
6320 Professional Services - - 6,000 -
7201 General Transfers Out 15,120 1,258 - -
7203 Vehicle ISF - - 5,534 1,157
7204 Equipment Fund ISF - - 13,952 14,322
7205 Risk Management ISF - - 17,004 17,254
Division Total 368,288 408,825 455,205 504,335

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4441 Code Enforcement 400 100 - -
General Fund Contribution 367,888 408,725 455,205 504,335 Division Total 368,288 408,825 455,205 504,335

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6100-6199 Supplies & Materials
6200-6299 Training & Memberships
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Office supplies to support all of the Community Development Department across all divisions, the Planning Commission, and Architectural Advisory Committee. There is no change.

Training, licensing and professional memberships for staff across all divisions in the department, as well as the Planning Commission. No change included.

Costs include digital mapping services as utilized by all departments and Draft
specialized technological support. There is no change.
314

PLANNING SERVICES
101-710

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 488,597 519,551 569,609 625,484
Materials & Supplies 2,089 66 - -
Contract Services 293,768 125,985 384,000 384,000
Transfers / Allocations Out 42,367 5,863 66,648 70,065
Division Total 826,820 651,464 1,020,257 1,079,549

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Charges for Services 347,428 222,087 171,118 171,188
General Fund 479,392 429,377 849,139 908,361
Division Total 826,820 651,464 1,020,257 1,079,549

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Community Development Director 0.25 0.25 0.25 0.25
Senior Planner 0.80 0.80 0.80 0.80
Housing Coordinator - - 0.50 0.50
Associate Planner 1.80 1.80 0.90 0.90
Assistant Planner - - 0.90 0.90
Community Preservation Specialist 0.50 0.20 0.20 0.20
Permit Technician 0.20 0.20 0.10 0.10
Administrative Assistant 0.20 - - -
Accounting Technician 0.05 - - -
FTE Total 3.80 3.25 3.65 3.65
-
200
400
600
800
1,000
1,200
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
315

PLANNING SERVICES
101-710

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 488,597 519,551 569,609 625,484 6101 General Supplies 405 - - -
6201 Training/Meetings 1,684 66 - -
6202 Memberships, Dues & Subscriptions - - - -
6301 Contract Services (Non-Govt) 291,768 125,097 76,339 - 6303 Advertising Costs 2,000 888 9,000 9,000
6320 Professional Services - - 298,661 375,000
7201 General Transfers Out 42,367 5,863 - -
7203 Vehicle ISF - - 10,108 2,477
7204 Equipment Fund ISF - - 25,483 30,656
7205 Risk Management ISF - - 31,057 36,933
Division Total 826,820 651,464 1,020,257 1,079,549

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4442 Planning Misc. 165,686 164,803 171,118 171,188
4443 Zoning & S/D Fees 181,742 56,062 - -
4444 General Plan Fee - 1,222 - -
General Fund Contribution 479,392 429,377 849,139 908,361 Division Total 826,820 651,464 1,020,257 1,079,549

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Cost includes planning contracts, environmental review, a housing specialist, and other related services. As well as other support as needed for the planning function. There is no change in this category.

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BUILDING AND CODE ENFORCEMENT
101-720

DIVISON EXPENSE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Salaries & Benefits 156,334 167,050 202,812 247,586
Materials & Supplies - - - -
Contract Services 224,381 193,761 225,000 270,000
Transfers / Allocations Out 25,561 5,638 37,750 35,924
Division Total 406,276 366,449 465,562 553,510

DIVISON REVENUE SOURCE BY CATEGORY
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Charges for Services 308,704 374,180 200,000 200,000
General Fund 97,572 (7,730) 265,562 353,510
Division Total 406,276 366,449 465,562 553,510

FTE COUNT BY TITLE
Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Community Development Director 0.25 0.25 0.25 0.25
Housing Coordinator - - 0.25 0.25
Community Preservation Specialist 0.50 0.40 0.40 0.40
Permit Technician 0.40 0.40 0.60 0.60
Administrative Assistant 0.40 - - -
FTE Total 1.55 1.05 1.50 1.50
-
100
200
300
400
500
600
Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
Thousands

DIVISION EXPENSE BY CATEGORY
Salaries & Benefits Materials & Supplies Contract Services Transfers / Allocations Out Draft
317

BUILDING AND CODE ENFORCEMENT
101-720

DIVISON EXPENSE BY LINE ITEM
Account Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
5000-5999 Salaries & Benefits 156,334 167,050 202,812 247,586 6101 General Supplies - - - -
6201 Training/Meetings - - - -
6202 Memberships, Dues & Subscriptions - - - -
6301 Contract Services (Non-Govt) 224,381 193,761 - -
6320 Professional Services - - 225,000 270,000
7201 General Transfers Out 25,561 5,638 - -
7203 Vehicle ISF - - 5,725 1,270
7204 Equipment Fund ISF - - 14,434 15,718
7205 Risk Management ISF - - 17,591 18,936
Division Total 406,276 366,449 465,562 553,510

DIVISON REVENUE SOURCES BY LINE ITEM
Account Description Actual
2019-20
Actual
2020-21
Revised
2021-22
Recommended
2022-23
4422 Building Permits 308,704 374,180 200,000 200,000
General Fund Contribution 97,572 (7,730) 265,562 353,510 Division Total 406,276 366,449 465,562 553,510

PRIMARY PROGRAM EXPENDITURE EXPLANATION
Account Description
5000-5999 Compensation
6300-6399 Contract Services
7000-7999 Internal Service Charges A portion of citywide shared costs such as information technology, risk management and vehicle maintenance.

Explanation
All salaries and benefits are budgeted in these line items. Increase is primarily due to merit increases.

Cost includes building plan check and inspection services; as well as other support as needed for the building function. Increase is due to need for additional hours from building inspection contract.

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318

CITY OF HALF MOON BAY
Other Funds
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Other Funds
Special Revenue and Capital Funds xxx
• Storm Drain Operations xxx
• Traffic Mitigation xxx
• Library xxx
• Main Street Bridge xxx
• Gas Tax xxx
• Streets & Roads xxx
• Measure A xxx
• Parks & Facilities Development xxx
• Affordable Housing xxx
• Public Facilities xxx
• Police Grants xxx
• Measure W xxx
• Capital General xxx
• Drainage Capital xxx
• Library Capital xxx
Debt Service Funds xxx
• JOB Series B xxx
Internal Service Funds xxx
• Vehicle Replacement xxx
• Retirement Stabilization xxx
Enterprise Funds xxx
• Sewer Operations xxx
• Sewer Capital Draft xxx
320

CITY OF HALF MOON BAY
Special Revenue and
Capital Funds
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Special Revenue and Capital Project Funds
Special Revenue Funds and Capital Project Funds are used to account for the proceeds of specific revenue sources that are, for the most part, legally or contractually restricted as to their use. In many instances, these funds pay for specialized services in the operating budget.

The Capital General Fund proceeds are derived from funds transferred from the General Fund (Fund 101). Unlike the special revenue funds, the Capital General Fund is unrestricted, and these proceeds can be used for any governmental purpose or project.

These funds typically are used to implement projects identified and prioritized annually in the Capital Improvement Program (CIP). The Capital improvement Program budgets for one fiscal year and plans for projects on a five-year horizon. The CIP is contained in a separate budget document that is adopted in conjunction with and as a companion to the operating budget.

STORM WATER MAINTENANCE & OPERATIONS (FUND 111)
The Storm Water Operating Fund is a restricted fund that provides for the maintenance of the existing storm water system. The storm water system includes existing collectors, culverts, ditches, and streams. This fund is primarily supported by transfers from the General Fund.

Goals and Objectives
 Ensure existing storm water drainage systems remain clear and free of debris and contaminants.
 Annually clear debris from existing drainage systems and maintain them.  Comply with the National Pollution Discharge Elimination System (NPDES) requirements.

TRAFFIC MITIGATION (Fund 112)
The Traffic Mitigation Fund is a restricted fund. Traffic mitigation fees defray the cost of constructing road improvements to mitigate the impacts of new development in Half Moon Bay.

These funds are used by the City to reduce traffic congestion and provide for safety and street improvements including signals, lighting, and signage within the City.

Goals and Objectives:
 Maximize leveraging of federal, State, County and local governmental agency grants.  Impose mitigation fees on new development as adopted by City Council.  Implement programs that are defined to meet needs for improved infrastructure.

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LIBRARY SERVICES OPERATING (Fund 113)
The Library Services Operating Fund is a restricted fund. The City, as part of the Countywide Library Joint Powers Authority (JPA), has assumed responsibility for the maintenance of the Half Moon Bay Branch Library structure and grounds. Maintenance is provided by Public Works Maintenance Division with assistance of specialized contract services.

Goals and Objectives
 Provide maintenance for the Half Moon Bay Library and grounds.  Maintain as Zero Net Energy facility.
 Plan and budget for preventive maintenance.

MAIN STREET BRIDGE FUND (FUND 121)
The Main Street Bridge Fund is a restricted fund. It provides the funding for a major restoration of the Main Street Bridge which traverses the Pilarcitos Creek connecting downtown to Highway

92. Contributions to the Main Street Bridge Fund come from the Gas Tax, federal funds and contributions from the General Fund.

Goals and Objectives
 Ensure Main Street Bridge is restored to meet seismic standards and provide access over Pilarcitos Creek for 50-75 years after completion.
 Ensure work complies with the approved local initiative and implementing City ordinance.  Maximize use of federal, State, County and local governmental agency grants.

GAS TAX FUND (FUND 122)
The Gas Tax Fund is a restricted fund. Gas tax revenue is allocated to cities from the State in accordance with the Streets and Highways Code sections 2105, 2106, and 2107. The City uses these tax proceeds primarily for streets, road maintenance, minor improvements and related storm water improvements.

Goals and Objectives
 Maintain City streets and roads, including curbs, gutters and sidewalks, in accordance with the City’s Pavement Management Program.
 Give priority to public safety in the programming of the Gas Tax Fund.

STREETS AND ROADS FUND (Fund 123)
The Streets and Roads Fund is a restricted fund. The fund accounts for the expenditures made for streets and roads and is funded by grants and other special revenues.

Goals and Objectives
 Maximize leveraging of federal, State, County and local government agency grants.

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 Implement programs and projects that enhance public safety, address deferred maintenance and, where possible, leverage other funds.

MEASURE A AND MEASURE W FUND (Fund 124)
The Measure A/W Fund is a restricted fund. Measure A was originally approved by the San Mateo County voters to levy 0.5% sales and use tax within the County to fund local transportationrelated maintenance and capital improvements beginning in 1988. In 2004, the voters approved a measure to continue the levy of the tax for an additional 25 years beginning in 2009. The Measure W Fund is a restricted fund. Measure W was approved by the San Mateo County voters in November 2018 to levy 0.5% sales and use tax within the County to fund road improvements, transit services, and implementation of the San Mateo County Congestion Relief Plan. The tax was approved for 30 years starting in 2019. These funds are restricted for use in maintenance and improvement of City streets and roads.

Goals and Objectives
 Maintain City streets and roads, including curbs, gutters and sidewalks, in accordance with the City’s Pavement Management Program.
 Give priority to public safety and severely degraded streets and roads in the programming of the Measure A Funds.

PARKS DEVELOPMENT (Fund 125)
The Parks Development Fund is a restricted fund. Development impact fees and federal, State, and County grants fund the Parks Development Fund. This fund is used for the acquisition, design and capital improvements of parks and trails in Half Moon Bay.

Goals and Objectives
 Impose park mitigation costs fees on development as adopted by City Council.  Focus efforts on projects that Implement the Parks Master Plan and the Pedestrian and Bicycle Master Plan.
 Maximize leveraging of Federal, State, County, and local governmental agency grants.

AFFORDABLE HOUSING FUND (Fund 126)
The Affordable Housing Fund is a restricted fund. The City has the option of accepting in-lieu fees from residential projects of 10 or more units to put towards supporting the development of affordable (below market rate) units. Where the City Council chooses to accept fees, those fees are deposited in this fund and used for affordable housing programs as well as other related projects in Half Moon Bay.

Goals and Objectives
 Adopt a plan for prioritization of affordable housing funds.

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 Consider alternate funding mechanisms and ordinance revisions to increase the availability and preservation of affordable housing in Half Moon Bay.

PUBLIC FACILITIES (Fund 127)
The Public Facilities Fund includes both restricted and unrestricted funds. Restricted funds are derived from Capital Outlay Impact Fees imposed on new development. Unrestricted funds are received from various contractual agreements that are one-time in nature and not otherwise specifically dedicated. The City uses this revenue for various public facility projects included in the CIP.

Goals and Objectives
 Impose capital outlay impact fees on development as adopted by City Council.  Implement projects that improve usability and safety of City facilities.  Maximize leveraging of federal, State, County, and local governmental agency grants.

POLICE SERVICES (Fund 128)
The Police Services Fund is a restricted fund. The City receives funds for police services from federal, State, County and local governmental agencies. These funds are designated for specific police services, activities, and capital equipment. The source of revenue in FY 2021- 22 is the COPS grant.

Goals and Objectives
 Maximize leveraging of grants from federal, State, County, and local governmental agencies.
 Continue to seek funding from the Association of Bay Area Governments (ABAG) for training, equipment, and risk management needs.

GENERAL CAPITAL (Fund 151)
The General Capital Fund is an unrestricted fund. The General Capital Fund includes funds transferred from the General Operating Fund (Fund 101) to implement much of the City’s Capital Improvement Program. Projects include new facilities, capital maintenance/replacement, technology, and other infrastructure improvements.

Goals and Objectives
 Provide funding for CIP projects from the General Operating Fund (Fund 101).  Provide unrestricted funds for a variety of desired Capital projects.

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STORM WATER IMPROVEMENTS (Fund 152)
The Storm Water Improvements Fund is a restricted fund used for drainage improvements related to new development. The Fund is used to account for all proceeds from storm water (drain) improvement fees which are assessed on newly constructed or remodeled homes and businesses.

Goals and Objectives
 Impose mitigation fees on development as adopted by City Council.  Maximize leveraging of federal, State, County and local governmental agency grants.

LIBRARY CAPITAL (Fund 153)
The Library Capital Fund is a restricted fund. The Library Capital Fund includes revenue, grants, and other contributions that was used to build the new Half Moon Bay Library. This fund will continue to assist in the capital maintenance and replacement efforts in the coming years.

Goals and Objectives
 Provide funding for ongoing improvements, capital maintenance and capital replacements at the Half Moon Bay Library.

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STORM DRAIN OPERATIONS
FUND 111
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
Interest 5,689 3,451 3,962 2,500
Miscellaneous 4,643 (4,412) - -
TOTAL REVENUE 10,332 (960) 3,962 2,500

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects - - - -

TOTAL EXPENDITURES - - - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 50,000 - - -
To Internal Service Funds (2) - - -
NET TRANSFERS 49,998 - - -
60,330 (960) 3,962 2,500
BEGINNING FUND BALANCE 1 292,332 352,662 351,702 354,200 ENDING FUND BALANCE 352,662 351,702 355,664 356,700

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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TRAFFIC MITIGATION
FUND 112
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4502 Traffic Mitigation 118,386 40,644 55,426 60,700
4610 Interest 74,762 41,283 31,300 29,800
4630 Miscellaneous 56,778 (52,545) - -
TOTAL REVENUE 249,927 29,381 86,726 90,500

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services 32,055 15,720 46,944 35,888
Capital Projects 79,483 - - -
TOTAL EXPENDITURES 111,538 15,720 46,944 35,888

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Internal Service Fund - - - -

NET TRANSFERS - - - -
138,389 13,661 39,782 54,612
BEGINNING FUND BALANCE 1 4,073,334 4,211,724 4,225,385 4,287,600 ENDING FUND BALANCE 4,211,724 4,225,385 4,265,167 4,342,212

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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LIBRARY
FUND 113
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4850 Grants 94,070 - - -
4610 Interest 348 166 191 100
Other Fees & Grants 5,584 - - -
4630 Miscellaneous 167.49 (213) - -
TOTAL REVENUE 100,170 (46) 191 100

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services (10,893) - - -
Capital Projects - - - -
TOTAL EXPENDITURES (10,893) - - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Capital Projects (4,083) - - -
To Internal Service Fund - - - -
NET TRANSFERS (4,083) - - -
106,980 (46) 191 100
BEGINNING FUND BALANCE 1 4,083 111,063 111,016 111,100
ENDING FUND BALANCE 111,063 111,016 111,207 111,200

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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MAIN STREET BRIDGE
FUND 121
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 8,273 4,358 4,980 -
4850 Grants 285,719 157,008 150,000 -
4630 Miscellaneous 6,367 (6,248) - -
TOTAL REVENUE 300,359 155,118 154,980 -

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects 232,379 242,452 324,000 -
TOTAL EXPENDITURES 232,379 242,452 324,000 -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - 53,000 8,200 -
To Capital Projects (489,300)
To Internal Service Fund - - - -
NET TRANSFERS - 53,000 8,200 (489,300)
67,980 (34,334) (160,820) (489,300)
BEGINNING FUND BALANCE 1 404,204 472,184 437,850 489,300 ENDING FUND BALANCE 472,184 437,850 277,030 -

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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GAS TAX
FUND 122
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4161 Gas Tax 347,099 394,991 270,000 304,700
4163 RMRA Tax - 114,946 237,000 237,500
4610 Interest 6,551 5,716 6,091 5,800
Unrealized Gains/Losses 5,603 (4,516) - -
4630 Miscellaneous 176,003 - - -
TOTAL REVENUE 535,255 511,136 513,091 548,000

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services 63,991 81,794 95,000 66,432
Capital Projects - - - -
TOTAL EXPENDITURES 63,991 81,794 95,000 66,432

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Capital Projects (227,337) (200,501) - -
To Internal Service Fund (3,834) - - -
NET TRANSFERS (231,171) (200,501) - -
240,093 228,841 418,091 481,568
BEGINNING FUND BALANCE 1 237,197 477,290 706,131 1,150,700 ENDING FUND BALANCE 477,290 706,131 1,124,223 1,632,268

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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STREETS AND ROADS
FUND 123
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4820 Measure M 75,000 - 75,000 75,000
4850 Grants - 10,000 823,000 -
4610 Interest 45,395 18,168 26,447 16,200
Unrealized Gains/Losses 39,045 (38,154) - -
4630 Miscellaneous - 16,387 - -
TOTAL REVENUE 159,440 6,401 924,447 91,200

EXPENDITURES
Salaries & Benefits 218,948 198,447 102,352 110,354
Materials & Supplies - - - -
Contract Services 1,685 1,008 2,000 600
Capital Projects 1,203,806 3,398,237 3,335,489 1,098,200 TOTAL EXPENDITURES 1,424,439 3,597,691 3,439,841 1,209,154

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 1,304,000 3,482,729 1,425,877 40,000
To Capital Funds - (2,084) - -
To Internal Service Fund (13,919) - (8,998) (7,701)
NET TRANSFERS 1,290,081 3,480,645 1,416,879 32,299
25,083 (110,645) (1,098,514) (1,085,655)
BEGINNING FUND BALANCE 1 2,455,556 2,480,639 2,369,994 3,103,900 ENDING FUND BALANCE 2,480,639 2,369,994 1,271,480 2,018,245

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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333

MEASURE A
FUND 124
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4132 Measure A 409,712 364,273 390,000 423,300
4133 Measure W 106,369 192,099 - -
4850 Measure A - Grants 88,662 2,802,128 - -
4610 Interest 6,794 10,899 9,307 5,200
4630 Miscellaneous 6,541 (6,117) - -
TOTAL REVENUE 618,078 3,363,282 399,307 428,500

EXPENDITURES
Salaries & Benefits 87,881 92,406 63,187 68,585
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects - - - -
TOTAL EXPENDITURES 87,881 92,406 63,187 68,585

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Captial Projects - (2,802,128) (298,468) -
To Internal Service Fund (4,917) - - -
NET TRANSFERS (4,917) (2,802,128) (298,468) -
525,280 468,747 37,651 359,915
BEGINNING FUND BALANCE 1 175,182 700,462 1,169,209 1,202,000 ENDING FUND BALANCE 700,462 1,169,209 1,206,861 1,561,915

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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PARK/FACILITIES DEVELOPMENT
FUND 125
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4503 Capital Impact / Dev Fee 68,581 - - -
4504 Park Facility Development 117,860 263,654 60,000 60,000 4850 Grants 5,000 8,415 4,775,000 4,750,000
4610 Interest 52,984 25,973 28,065 18,400
4630 Miscellaneous 47,995 (39,907) - -
TOTAL REVENUE 292,419 258,135 4,863,065 4,828,400

EXPENDITURES
Salaries & Benefits 26,830 11,267 - -
Materials & Supplies - 8,415 - -
Contract Services - - - -
Capital Projects 1,361,626 230,731 7,975,496 7,393,900
TOTAL EXPENDITURES 1,388,455 250,413 7,975,496 7,393,900

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 1,433,078 222,000 1,385,000 250,000
To Capital Projects (630,413) - (200,000) -
To Internal Service Fund (381) - - -
NET TRANSFERS 802,284 222,000 1,185,000 250,000
(293,752) 229,722 (1,927,431) (2,315,500)
BEGINNING FUND BALANCE 1 2,775,043 2,481,291 2,711,013 3,483,400 ENDING FUND BALANCE 2,481,291 2,711,013 783,582 1,167,900

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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AFFORDABLE HOUSING
FUND 126
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 40,877 21,741 25,385 15,300
4630 Miscellaneous 30,699 (29,974) - -
TOTAL REVENUE 71,576 (8,233) 25,385 15,300

EXPENDITURES
Salaries & Benefits 449 - - -
Materials & Supplies - - - -
Contract Services - - - -
Financial Grants / Aid 300,000 200,000 - -
Capital Projects - - - -
TOTAL EXPENDITURES 300,449 200,000 - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 400,000 - - -
To Internal Service Fund
NET TRANSFERS 400,000 - - -
171,127 (208,233) 25,385 15,300
BEGINNING FUND BALANCE 1 2,203,383 2,374,510 2,166,277 2,181,600 ENDING FUND BALANCE 2,374,510 2,166,277 2,191,662 2,196,900

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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PUBLIC FACILITIES
FUND 127
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4991 Loan Proceeds - - 1,000,000 700,000
4850 Grants - 6,525 20,000 -
4900 Impact & Development Fees - - - -
4610 Interest 26,787 12,745 14,169 9,700
4630 Miscellaneous 19,869 (19,903) - -
TOTAL REVENUE 46,657 (633) 1,034,169 709,700

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects 308,515 92,244 1,912,035 3,406,619
TOTAL EXPENDITURES 308,515 92,244 1,912,035 3,406,619

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 540,000 225,000 520,000 2,308,919
To Capital Projects (484,241) - - -
To Internal Service Fund
NET TRANSFERS 55,759 225,000 520,000 2,308,919
(206,099) 132,122 (357,866) (388,000)
BEGINNING FUND BALANCE 1 1,479,143 1,273,044 1,405,166 1,684,300 ENDING FUND BALANCE 1,273,044 1,405,166 1,047,300 1,296,300

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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POLICE GRANTS
FUND 128
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4840 COPS Distribution 155,948 156,727 156,000 158,500
4610 Interest 9,320 5,502 6,094 4,300
4630 Miscellaneous 7,445 (7,047) - -
TOTAL REVENUE 172,712 155,182 162,094 162,800

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies 60,487 1,087 - -
Contract Services 49,605 84,949 200,000 200,000
Capital Projects - - - -
TOTAL EXPENDITURES 110,092 86,035 200,000 200,000

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Internal Service Fund - - - -

NET TRANSFERS - - - -
62,620 69,147 (37,906) (37,200)
BEGINNING FUND BALANCE 1 428,946 491,566 560,712 721,100 ENDING FUND BALANCE 491,566 560,712 522,806 683,900

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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MEASURE W
FUND 132
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4134 Measure W - - 125,000 152,900
4610 Interest - - - 1,900
4630 Miscellaneous - - - -
TOTAL REVENUE - - 125,000 154,800

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects - - - -

TOTAL EXPENDITURES - - - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From Other Funds - - 298,468 -
To Captial Projects - - - -
To Internal Service Fund - - - -
NET TRANSFERS - - 298,468 -
- - 423,468 154,800
BEGINNING FUND BALANCE 1 - - - 425,400
ENDING FUND BALANCE - - 423,468 580,200

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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LOT ACQUISITION / DEVELOPMENT
FUND 133
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4134 CAPITAL IMP/IMPACT/DEV - 2,684,210 - -
4610 Interest - - 19,700 18,800
4630 Miscellaneous - 3,483 - -
TOTAL REVENUE - 2,687,693 19,700 18,800

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - 101,599 270,000 430,000
Capital Projects - - - -
TOTAL EXPENDITURES - 101,599 270,000 430,000

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From Other Funds - - - -
To Capital Projects - - - -
To Internal Service Fund - - - -

NET TRANSFERS - - - -
- 2,586,094 (250,300) (411,200)
BEGINNING FUND BALANCE 1 - - 2,586,094 2,175,000
ENDING FUND BALANCE - 2,586,094 2,335,794 1,763,800

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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CAPITAL GENERAL
FUND 151
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4991 Loan Proceeds - 2,035,000 - -
4850 Grants - - - -
4610 Interest 36,235 7,197 14,396 8,400
4630 Miscellaneous 19,063 (22,850) - -
TOTAL REVENUE 55,298 2,019,347 14,396 8,400

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies 677 - - -
Contract Services - - - -
Capital Projects 196,231 2,243,537 1,055,686 2,586,900
TOTAL EXPENDITURES 196,908 2,243,537 1,055,686 2,586,900

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 605,000 443,000 288,500 1,530,800
To General Fund
To Capital Projects (1,309,173) (3) - -
To Internal Service Fund - - - -
NET TRANSFERS (704,173) 442,997 288,500 1,530,800
(845,783) 218,807 (752,790) (1,047,700)
BEGINNING FUND BALANCE 1 2,364,021 1,518,237 1,737,044 1,748,600 ENDING FUND BALANCE 1,518,237 1,737,044 984,254 700,900

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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DRAINAGE CAPITAL
FUND 152
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4501 Storm Drainage Fee 11,175 4,245 9,879 10,000
4610 Interest 22,855 9,688 10,816 7,500
4630 Miscellaneous 12,268 (13,287) - -
TOTAL REVENUE 46,299 646 20,695 17,500

EXPENDITURES
Salaries & Benefits 37,980 63,059 40,846 41,948
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects 586,735 (18,242) 575,000 1,172,300
TOTAL EXPENDITURES 624,715 44,816 615,846 1,214,248

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 150,000 155,000 20,000 375,000
To Capital Projects (150,000) (301) - -
To Internal Service Fund (2,412) - (3,382) (2,911)
NET TRANSFERS (2,412) 154,699 16,618 372,089
(580,828) 110,528 (578,533) (824,659)
BEGINNING FUND BALANCE 1 1,534,533 953,705 1,064,233 1,047,700 ENDING FUND BALANCE 953,705 1,064,233 485,700 223,041

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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LIBRARY CAPITAL
FUND 153
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4850 Grants - 48,148 15,000 -
4610 Interest 29,334 12,982 14,771 3,500
4630 Miscellaneous 14,057 (16,273) - -
TOTAL REVENUE 43,391 44,858 29,771 3,500

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies - - - -
Contract Services - - - -
Capital Projects - - - -

TOTAL EXPENDITURES - - - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To Internal Service Fund - - - -

NET TRANSFERS - - - -
43,391 44,858 29,771 3,500
BEGINNING FUND BALANCE 1 1,244,496 1,287,887 1,332,745 446,400 ENDING FUND BALANCE 1,287,887 1,332,745 1,362,516 449,900

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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CITY OF HALF MOON BAY
Debt Service Funds
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Debt Service Funds
Debt Service Funds are restricted funds. They are used to account for the payment of principal and interest on long-term debt of the City. They are also used to maintain cash reserves as required under debt covenants.

JUDGMENT OBLIGATION DEBT SERVICE FUND SERIES 2009B (FUND 142) In July 2009, the City issued 2009B Judgment Obligation Bond (JOB) in the amount of $10.9 million. The proceeds were used to settle the City’s judgment obligation (legal settlement) on the Yamagiwa case.
2009B Series Bond
The Series 2009B was a Build America Bond issued under the provisions of the Federal American Recovery and Reinvestment Act of 2009. The Series 2009B bond was originally set to mature in 2040, with interest due semiannually, until 2027 when principal is also due annually. Interest rates ranged from 8.5% to 8.65%. The City received Federal interest subsidies on the Build America Bonds equal to approximately 26.5% of the annual payments.

The original bond covenant required that the City maintain cash reserves in the amount of $1.2 million (rounded). These reserves were accounted for in previously retired Fund 77 (Series 2009A Bond) and Fund 142 (Series 2009B Bond, retired August 1, 2019).

Insurance Settlements & Early Retirement
The City has received insurance settlements from ABAG Plan and ICW in connection with the Yamagiwa case. In 2013, the City Council adopted a resolution approving an agreement with the Bond Trustee to retire the Judgment Obligation Bonds early (the 2009A Bonds were retired on August 1, 2014 and the 2009B Bonds were retired on August 1, 2019).

The retirement of the Judgment Obligation Bond Series 2009B in FY 2019-20 resulted in a debt service expense reduction of $590,000 in the General Fund in FY 2019-20.

SAN MATEO COUNTY LOAN
In FY 2017-18, the City received a loan in the amount of $6 million from the County of San Mateo to partially finance the construction of the new library. The loan carries no interest and is payable in 10 equal installments of $572,000 per year, beginning FY 2019-20. The loan repayments are budgeted as an expenditure in the General Fund.
880 STONE PINE FINANCING
In FY 2020-21, the Council directed City staff to negotiate and execute a loan with the State of California Infrastructure Bank (iBank) in the amount of $3.2million to fully finance the purchase of the 880 Stone Pine property as well as the construction of a new Corporation Yard facility. The loan carries a 2.50% interest rate and a financing term of 30 years. The loan repayments are budgeted as an $161,577 expenditure in the General Fund per year.

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JUDGEMENT OBLIGATION BOND - SERIES B
FUND 142
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 1,370,150 281 - -
4630 Unrealized Gain (Loss) (1,226,211) 56 - -
TOTAL REVENUE 143,939 337 - -

EXPENDITURES
Debt Service - Interest 468,852 - - -
Debt Service - Principal Payment 10,915,000 - - -
Contract Services - - - -
Capital Projects - - - -
TOTAL EXPENDITURES 11,383,852 - - -

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund - - - -
To General Fund (399,999) (30,000) - -
To Internal Service Fund - - - -
NET TRANSFERS (399,999) (30,000) - -
(11,639,911) (29,663) - -
BEGINNING FUND BALANCE 1 11,675,885 35,974 6,311 6,400
ENDING FUND BALANCE 35,974 6,311 6,311 6,400

NET CHANGE TO FUND BALANCE
1 Beginning Fund Balance for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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CITY OF HALF MOON BAY
Internal Service Funds
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Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments for the City on a cost-reimbursement basis. The four Internal Service Funds are Vehicle Replacement Fund, Equipment Replacement Fund, Risk Management Fund, and Retirement Stabilization Fund.

VEHICLE REPLACEMENT FUND (Fund 301)
The Vehicle Replacement Fund is an unrestricted fund. It covers the cost of repair, maintenance, and replacement of City vehicles. Revenue for this fund is derived from internal service charges to City departments. This Fund acts as a pass-through entity.

Goals and Objectives
 Provide timely repair and maintenance for vehicles and new vehicle purchases.  Constantly review the mode of operation for the efficient utilization of the City’s fleet.

INFORMATION TECHNOLOGY FUND (Fund 302)
See Administrative Services Department Budget.

RISK MANAGEMENT FUND (Fund 303)
See Administrative Services Department Budget.

RETIREMENT STABILIZATION FUND (Fund 304)
The Retirement Stabilization Fund is an unrestricted fund. The Retirement Stabilization Fund was created to smooth out major fluctuations in annual pension costs and the annual payment of the unfunded liability. Large swings have impacted the City’s financials in the past, and recent changes in CalPERS actuarial assumptions and discount rate will have a significant impact on the City’s future pension cost and contribution rates. The funding for this program is provided through an annual transfer from the General Fund.

Goals and Objectives
 Build reserves that can be used to meet large swings in annual pension costs.  Budget and pay down pension side fund liabilities to save future interest costs.

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VEHICLE REPLACEMENT
FUND 301
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4503 Capital Impac / Dev Fee 17,091 8,483 5,000 10,900
4610 Interest 4,713 1,888 2,217 1,200
4630 Miscellaneous 2,280 (2,595) - -
TOTAL REVENUE 24,084 7,777 7,217 12,100

EXPENDITURES
Salaries & Benefits - - - -
Materials & Supplies 106,949 18,703 170,000 -
Contract Services - - - -
Capital Projects 18,988 42,404 8,000 17,500
DEP Depreciation 26,567 23,357 26,567 26,567
TOTAL EXPENDITURES 152,504 84,465 204,567 44,067

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From Other Funds - - 204,568 44,067
NET TRANSFERS - - 204,568 44,067
(128,420) (76,688) 7,218 12,100
BEGINNING NET ASSETS 467,190 338,770 262,082 273,200
ENDING NET ASSETS 338,770 262,082 269,300 285,300

NET CHANGE TO NET ASSETS
Note: The presentation above reflects a Net Assets basis of presentation. In the Vehicle Replacement Fund, Net Assets primarily include capitalized equipment and cash.

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RETIREMENT STABILIZATION
FUND 304
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4610 Interest 21,101 7,529 6,371 4,000
4630 Miscellaneous 19,887 (19,006) - -
4630 Reimbursed Expenses - 35,905 - -
TOTAL REVENUE 40,988 24,428 6,371 4,000

EXPENDITURES
Salaries & Benefits 851,761 959,543 1,041,748 1,152,095 Materials & Supplies - - - -
Contract Services - - - -
Capital Projects - - - -
TOTAL EXPENDITURES 851,761 959,543 1,041,748 1,152,095

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund 1,000,000 1,000,000 1,041,748 1,152,095 To Internal Service Fund
NET TRANSFERS 1,000,000 1,000,000 1,041,748 1,152,095
189,227 64,885 6,371 4,000
BEGINNING NET ASSETS 1,211,944 1,401,171 1,466,056 1,470,000 ENDING NET ASSETS 1,401,171 1,466,056 1,472,427 1,474,000

NET CHANGE TO NET ASSETS
Note: The presentation above reflects a Net Assets basis of presentation. In the Retirement Stabilization Fund, Net Assets primarily represents cash.

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CITY OF HALF MOON BAY
Enterprise Funds
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Enterprise Funds
Enterprise Funds are used to account for services that are financed and operated in a manner more closely related to private business enterprise. In accordance with State law, the City imposes user fees to ensure the costs of providing the services are financed primarily through those charges.

SEWER OPERATING (Fund 201)
The Sewer Operating Fund is a restricted fund that is funded by sewer user charges. The Sewer operating budget is used to account for the financial activity of the City’s sewer utility. The Fund is used to account for:

1. Wastewater treatment services provided by the Sewer Authority Mid-Coastside (SAM), a Joint Powers Authority.

2. Capital maintenance and replacement of the SAM wastewater treatment plant and Intertie Pipeline System (IPS).

3. Regular cleaning of the City-owned wastewater collection system.

4. Emergency response, marking of underground utilities, inspection including CCTV of system and Fats, Oil, Grease (FOG) management and inspection.

5. Maintenance, operation, rehabilitation, repair, and replacement of the City-owned wastewater collection system.

Goals and Objectives
 Protect the health and welfare of the community by ensuring the continuous uninterrupted operation of the City-owned wastewater collection and transmission systems to every extent possible to meet all federal, State, and local standards.  Provide appropriate and economical maintenance and repair of the wastewater collection and transmission system and its appurtenances.  Fund the cost of collection, transmission, and treatment of the wastewater system.

This effort includes overseeing the operations (and financial management) of SAM as a member of the Joint Powers Authority and sitting Board of Directors.  Continue to repair and improve damaged or substandard sections of the wastewater collection system to ensure proper operating conditions by using a program that provides cleaning, preventive maintenance, and repair of the system. The work includes inspection and management of FOG generating businesses and marking of underground pipes to reduce potential damage.
 Provide expedient response to emergency situations including SSO events.

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SEWER CAPITAL (Fund 202)
The Sewer Capital Fund is a restricted fund that is funded by sewer user charges. The Sewer Capital Fund provides resources for capital improvements included in the City’s CIP, work necessitated by emergency repairs and/or emerging issues and the City’s share of capital improvements at the SAM Treatment Plant and the Intertie Pipeline System as included in the SAM CIP. Projects include testing, evaluation, maintenance, repair, and replacement of the City’s wastewater collection system including the three sewer pump stations and force mains.

Goals and Objectives
 Replace sewer collection lines that have suffered damage and ensure integrity of the wastewater collection system.
 Identify and mitigate I & I within collection system.  Maintain and update the City’s Sewer Master Plan.
 Evaluate capital needs and sewer rates to ensure adequate resources are available to fund requirements.

SEWER FUND AND CHARGES OVERVIEW
The City’s Sewer Fund is a government enterprise fund. An enterprise fund is a selfsupporting government fund that provides a specialized service. In this instance, City sewer services represent the specialized service; the Sewer Fund is the City’s only enterprise fund.

The Sewer Fund is shown in the City’s Annual Operations Budget as two separate accounts:

Fund 201 (Operating Fund); and 202 (Sewer Capital Fund). The separation exists solely to separately account for operations expenses and capital expenses.

Ninety-nine percent (99%) of sewer system (utility) revenues is derived directly from rates charged to the users of the sewer system. Per state law, sewer service charges are permitted to recover only revenues sufficient to adequately fund sewer utility operations, maintenance, and capital replacement expenditures including maintenance of emergency and capital reserves. As noted, the City’s sewer service charges include not only the operation and maintenance of the City collection system, but also the proportional costs of operating and maintaining the Sewer Authority Mid-Coastside (SAM) (including the treatment plant and intertie pipeline system).

Operations and maintenance costs for sewer services have increased significantly over the last several years. SAM’s Budget has increased from $7.3 Million (FY 2021-22) to $8.2 Million (FY 2022-23) and Half Moon Bay’s current share is $4.8 Million (59.4%). SAM related increases are attributable to several factors including the need to provide sufficient staffing, addressing deferred maintenance, payment for sewer spill related costs, and account for the rapidly increasing cost of materials and labor of capital construction and maintenance.

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The City’s collection system operating costs have also risen in response to statutory oversight obligations, addressing long deferred maintenance, providing oversight of the operations and maintenance, and to account for the rapidly increasing cost of materials and labor for capital construction and maintenance. The City recently completed the Ocean Colony Pump Station and Force Main Project (app. $2.1 million). This project replaced aging infrastructure necessary to protect the environment and limit liability and is indicative of the cost of maintenance and replacement of sewer infrastructure. Additional capital maintenance and repair will continue to be needed to protect the environment, limit liability, and meet statutory obligations. While the City is proactively managing and maintaining its sewer assets, portions of the inground pipes are 70-80 years old and approaching normal life expectancy. The cost of SAM contract services for sewer cleaning and emergency response has increased approximately 27-percent for FY 21-22.

The most recent rate increase for City sewer customers was effective July 1, 2020, based upon a rate study approved by the City Council in June 2020. The increases cover rates for FY 2020-21 and FY 2024-25. This adjustment followed a rate increase approved in 2014 which increased rates in FY 2013-14 and FY 2014-15. Granada and Montara are subject to the same fixed costs issues and have each increased rates during this period. Montara updated their sewer rates for the next three years through nine percent annual rate increases (effective on July 1, 2020). Many San Mateo County/Peninsula agencies have or will be considering rate adjustments to address increasing fixed costs and environmental compliance.

SEWER NET ASSET AND CASH PRESENTATION
The Sewer Fund Balance is presented on a dual basis in the budget document: Net Asset and Cash Reserves. Net Assets is the excess of assets over liabilities and isthe basis of presentation prescribed by GASB Statement No. 34. A significant portion of the City’s Net Assets are invested in SAM and so it is important to review cash reserve balances to understand amounts available for operations and capital improvements.

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SEWER OPERATIONS
FUND 201
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4451 Sewer Service Charges 4,389,304 4,431,835 4,869,677 5,027,544 4610 Interest 1,389 - - -
4630 Miscellaneous 6,030 (5,346) - -
TOTAL REVENUE 4,396,723 4,426,489 4,869,677 5,027,544

EXPENDITURES
Salaries & Benefits 353,356 550,202 487,152 504,501
Materials & Supplies 1,102 - 8,000 8,000
Contract Services 4,917,893 5,000,293 5,176,140 5,729,767 Capital Projects - - - -
TOTAL EXPENDITURES 5,272,351 5,550,495 5,671,292 6,242,268

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From Sewer Capital Fund 2,006,000 1,445,413 1,839,948 3,005,962 To General Fund (Admin Fee) (472,290) (621,266) (511,395) (524,180) To Internal Service Fund (208,327) - (506,652) (433,258) NET TRANSFERS 1,325,383 824,147 821,901 2,048,524
449,755 (299,859) 20,286 833,800
BEGINNING NET ASSETS 1 (399,728) 50,027 (249,832) (833,800) ENDING NET ASSETS 50,027 (249,832) (229,546) 0

NET CHANGE TO FUND BALANCE
1 Beginning Net Assets for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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SEWER CAPITAL
FUND 202
ACTUAL
2019-20
ACTUAL
2020-21

REVISED BUDGET
2021-22

RECOMMENDED
2022-23

REVENUES
4451 Sewer Rate Charges 35,759 - - -
4506 Sewer Service Charges 114,957 45,324 114,957 154,616 4610 Interest 228,036 108,871 65,000 59,200
4630 Miscellaneous 147,036 (153,203) - -
TOTAL REVENUE 525,788 992 179,957 213,816

EXPENDITURES
Salaries & Benefits (132) 1,139 - -
Materials & Supplies - - - -
Contract Services - 960 - -
Capital Projects 572,161 476 2,628,755 574,500
SAM Loss / (Gain) on SAM Investment (2,307,512) (685,080) 175,000 175,000 DEP Depreciation 106,003 117,294 106,003 106,003
TOTAL EXPENDITURES (1,629,481) (565,210) 2,909,758 855,503

OTHER FINANCING SOURCES (USES)
Transfers in / (out)
From General Fund -
To Sewer Operations (2,006,000) (1,445,394) (1,839,948) (3,005,962) To General Fund (16,796)
To Internal Service Fund
NET TRANSFERS (2,022,796) (1,445,394) (1,839,948) (3,005,962) 132,473 (879,192) (4,569,749) (3,647,649)
BEGINNING NET ASSETS 1 25,035,146 25,167,619 24,288,427 22,732,326 ENDING NET ASSETS 25,167,619 24,288,427 19,718,678 19,084,677 ENDING AVAILABLE FUNDS2 11,887,922 8,711,217 4,422,471 2,604,354

NET CHANGE TO NET ASSETS
2 Available Funds represents the portion of net assets that is unrestricted. This number does not include the non-cash value of fixed assets, construction in progress and equity in the Sewer Authority Mid-Coastside agency 1 Beginning Net Assets for FY 2022-23 based on updated estimates and may not match budgeted estimates for FY 2021-22 ending balance.

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CITY OF HALF MOON BAY
Capital Improvement Program
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Capital Improvement
Capital Improvement Program xxx
• Capital Improvement Narrative xxx
• CIP 5-year Summary xxx
• CIP 5-Year Expenditures Budget xxx
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Capital Improvement Program
The City’s 5-Year Capital Improvement Program (CIP) is a financial planning and prioritization tool that represents the City’s continuous efforts to protect public health and safety and enhance the quality of life and experience for visitors and residents in Half Moon Bay. The CIP identifies current and future capital improvements and provides the following benefits:
• Facilitates the scheduling of public improvements that require expenditures and appropriations over one or more fiscal years.
• Provides orderly management of capital projects consistent with the General Plan and adopted master plans; and
• Enhances eligibility for grants from the State, County and the federal Government.

Capital improvements are either projects or programs with total budgets that typically exceed $30,000. Projects are generally large, one-time enhancements whereas programs occur annually with a new project emphasis each year. The City’s capital improvement needs are a result of an aging infrastructure, a challenging coastal environment, prior deferred maintenance and desired construction of new facilities and major modifications of existing facilities.

Although the City’s CIP looks at the upcoming five fiscal years, the funding request only covers the first year of the program, which is referred to as the Capital Budget. The Capital Budget has historically relied heavily upon the transfer of City General Funds, although staff continue to actively look for grant funding opportunities. Projects continue to be evaluated and prioritized based on criteria including: public safety, project impact, progress on project, use of non-General Fund monies (e.g. grant funding, sewer capital, etc.) and implementation of City Council strategic priorities. Projects were also identified as “high,” “mid,” or “low” effort projects so staff could better identify and assign available resources. The emphasis in FY 22- 23 will be delivering large, infrastructure projects including Carter Park Improvements, Corporate Yard Improvements, and Highway 1 Safety – North.

CIP improvements are divided into the 8 categories described below.

Storm Water Improvements are focused on maintaining and improving the City’s storm water system to protect homes, businesses, public facilities and infrastructure. The Storm Drain Master Plan is an important component to prioritizing improvements, identifying regulatory requirements and preventing catastrophic failure of the storm water system in the future. FY 2022-23 includes funding to update the Master Plan.

Economic Development Improvements focus on delivering projects and programs that will enhance the living standard and attractiveness of Half Moon Bay for residents and visitors alike. Priorities in FY 2022-23 include implementation of the LCP and Housing Element and recommendations from the City’s Coastal Recovery Initiative.

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Operational Improvements include major capital investments to enhance the internal operational efficiencies of the City. These improvements will help City staff perform more efficiently and allow staff to respond to customer requests in a timelier manner. Each of the improvements also enhance the City’s transparency as envisioned in the strategic plan.

Park Improvements are critical to maintain the health and livability of Half Moon Bay for residents and visitors alike. Within Half Moon Bay, there are parks focused on active play and others focused on passive recreation. In some cases, City parks include both aspects.

These improvements focus on maintaining and enhancing the City’s various park assets.

Facility Improvements focus on assessing, enhancing, and maintaining the City’s various facilities, including making sure the facilities are in compliance with the Americans with Disabilities Act (ADA). City facilities include the Half Moon Bay Library, the Ted Adcock Community Center, the Emergency Operations Center, the Train Depot, and City Hall.