Half Moon Bay City Council
February 21, 2023

CITY COUNCIL AGENDA

REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, FEBRUARY 21, 2023
REMOTE PARTICIPATION (SEE NEXT PAGE) Deborah Penrose, Mayor Joaquin Jimenez, Vice Mayor
Robert Brownstone, Councilmember
Harvey Rarback, Councilmember
Debbie Ruddock, 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/95535614263 or join by phone at 669-900-9128, using Webinar ID 955-3561-4263. If joining by phone, use *9 to raise your hand, *6 to mute and unmute.

CALL TO ORDER / ROLL CALL

APPROVAL OF AGENDA

PROCLAMATIONS AND PRESENTATIONS

HIP HOUSING UPDATE

MIDCOAST COMMUNITY COUNCIL UPDATE

MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

CITY MANAGER UPDATES TO COUNCIL

STORM RESPONSE UPDATE

LISTENING SESSION / PRIORITY SETTING WORKSHOP REMINDER

PUBLIC FORUM

1. CONSENT CALENDAR

1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES

1.B TERMINATION OF LOCAL EMERGENCY RELATED TO THE DECEMBER/EARLY

JANUARY WINTER STORMS/FLOODING EVENT
Staff Recommendation: Adopt a resolution terminating the declared Local Emergencies related to the December/Early January Winter Storms/Flooding Event.

STAFF REPORT

RESOLUTION
ATTACHMENT 2
2 1.C WARRANTS FOR THE MONTH OF JANUARY 2023
Staff Recommendation: Accept the warrants list for the month of January 2023.

STAFF REPORT

ATTACHMENT

1.D RESOLUTION APPOINTING PRIMARY AND ALTERNATE MEMBERS TO REPRESENT THE

CITY OF HALF MOON BAY ON THE PLAN JPA BOARD OF DIRECTORS Staff Recommendation: Adopt a resolution appointing the Administrative Services Director (l. Lopez Rossi) and Finance Manager (K. Stiles) to represent the City of Half Moon Bay on the Plan JPA Board of Directors.

STAFF REPORT

RESOLUTION

1.E PROFESSIONAL SERVICES AGREEMENT WITH NBS FOR COST ALLOCATION PLAN,

USER FEE STUDY AND DEVELOPMENT IMPACT FEE STUDY
Staff Recommendation: Authorize the City Manager to execute an agreement for a cost allocation plan, user fee study and development impact fee study with NBS.

STAFF REPORT

RESOLUTION

1.F MAIN STREET AND KELLY AVENUE PARCEL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT (433 - 447 MAIN STREET)
Staff Recommendation: Adopt a resolution:

1. Approving the Parcel Map for the Main Street and Kelly Avenue Subdivision; and

2. Approving the Subdivision Improvement Agreement for the Main Street and Kelly Avenue Subdivision; and

3. Accepting, on behalf of the Public, the dedicated Public Utility Easement for dry utilities (electric and communication services); and

4. Authorizing the Interim Public Works Director/City Engineer, City Clerk, and Acting City Surveyor, to execute and record the Parcel Map with the office of the San Mateo County Recorder; and

5. Authorizing the City Manager to execute the Subdivision Improvement Agreement between the Developer and the City of Half Moon Bay, along with recording the Agreement with the office of the San Mateo County Recorder.

STAFF REPORT
3 RESOLUTION
ATTACHMENT 2 - MAP
ATTACHMENT 3 - SIA

2. ORDINANCES AND PUBLIC HEARINGS

3. RESOLUTIONS AND STAFF REPORTS

3.A FORMATION OF A TEMPORARY AD HOC HOUSING COMMITTEE
Staff Recommendation: Adopt a resolution authorizing creation of a temporary Ad Hoc Housing Committee and confirming Mayor Penrose and Vice Mayor Jimenez as members.

STAFF REPORT

RESOLUTION

3.B 555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT - PREDEVELOPMENT

LOAN AGREEMENT WITH MERCY HOUSING
Staff Recommendation: Adopt a Resolution authorizing the City Manager to execute a predevelopment loan agreement between the City and Mercy Housing California 110, L.P., a California limited partnership, in an amount not to exceed $1,000,000 from the Affordable Housing Fund, to support predevelopment activities for an affordable housing development project on City-owned land at 535 and 555 Kelly Avenue.

STAFF REPORT

RESOLUTION
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4

3.C REVIEW OF HALF MOON BAY MUNICIPAL CODE CHAPTER 1.30 - CONTRIBUTIONS

AND LOANS TO CITY CANDIDATE CAMPAIGNS
Staff Recommendation: Review local ordinance provisions and receive update on SB 1439 (Glazer) and provide direction to staff on whether the City’s campaign contribution limits should be amended.

STAFF REPORT
4 ATTACHMENT 1
ATTACHMENT 2

3.D FINANCIAL AND TREASURER’S REPORT FOR THE QUARTER ENDED ON DECEMBER 31, 2022
Staff Recommendation: Accept the Financial Report and the Treasurer’s Report for the quarter ended on December 31, 2022.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2

FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS

CITY COUNCIL REPORTS

ADJOURNMENT
5

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Catherine Engberg, City Attorney
TITLE: TERMINATION OF LOCAL EMERGENCY RELATED TO THE DECEMBER/EARLY

JANUARY WINTER STORMS/FLOODING EVENT
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution terminating the declared Local Emergencies related to the December/Early January Winter Storms/Flooding Event.

FISCAL IMPACT:

To be determined. The Declaration of Local Emergency qualifies the City of Half Moon Bay for state and federal assistance. The City has submitted required information to the County Department of Emergency Management (DEM) seeking assistance for public and private related repairs.

BACKGROUND:

On December 31, 2022, the City of Half Moon Bay experienced severe flooding consistent with localized flooding events experienced throughout San Mateo County and the San Francisco Bay Area. That same day, the National Weather Service issued a Flood Warning. Portions of Highways 1, 35, and 92 were closed on December 31, 2022, due to landslides, mudslides, and fallen trees. A sinkhole subsequently developed on Highway 92 resulting in closure of the critical easterly link to the greater San Mateo County area.

Pilarcitos Creek reached unprecedented levels at the Highway 1 Bridge gauge. As reported by the Coastside Fire Protection District, due to dangerous conditions, people were assisted from flooded homes and roads at on Oak Avenue near Pilarcitos Avenue. The flood warning and subsequent flooding from Pilarcitos Creek required relocation of unhoused individuals from the Pilarcitos Creek watershed.

The SAM plant experienced flooding which required extensive work and monitoring. Runoff from stormwater and wastewater spills impacted ocean waters along the Half Moon Bay coast.

Beaches were closed to swimmers due to high surf conditions and water quality. Wave action, 6

bluff erosion combined with inland runoff resulted in significant damage to the California Coastal Trail and required the closing of portions of the Trail to the public.

In an attempt to prevent overtopping of the dam, the San Francisco Public Utilities Commission began releasing water from Pilarcitos Reservoir into Pilarcitos Creek on January 1, 2023, with releases timed with rain forecasts and predicted tides to minimize impacts. Eventually, there was minor overtopping of the dam which sent unplanned water releases into the Pilarcitos Creek.

On January 1, 2022, the Director of Emergency Services (Half Moon Bay City Manager) proclaimed a Local Emergency related to the Severe Storm Events / Local Flooding. The City Council adopted a resolution ratifying the proclamation on January 4, 2023.

The Emergency Operations Center was activated, and open for extended hours (in some cases overnight) to protect community members and property. Efforts involved mobilization of CERT Program volunteers and coordination with the American Red Cross for the opening of a temporary evacuation center at the Ted Adcock Community Center.

DISCUSSION:

Pursuant to California Government Code section 8630(c), the City Council and City Manager must review the need for continuing the local emergency at least once every 60 days until the governing body terminates the local emergency. The City Council and City Manager are obligated to proclaim the termination of the local emergency at the earliest possible date that conditions warrant. (Gov. Code 8630(d).)
The City declared the Local Emergency based on several factors that have now been resolved.

The extreme peril resulting from the flooding has been addressed. As described in the attached letter from the County of San Mateo Department of Emergency Management (DEM), both FEMA and the State have defined the storm emergency period as concluding on January 31, 2023. There is still significant work to do to rehabilitate public property damaged by the storm.

San Mateo County DEM continues to work with FEMA and CalOES on long-term recovery so that they may proceed with assisting cities and special districts in recovering some of the extraordinary costs associated with the storm. We have just recently received confirmation that San Mateo County has been designated for across-the-board Public Assistance. This Public Assistance now extends to repair or replacement of disaster damaged private and public structures and facilities. The City is also eligible for reimbursement for expenses incurred during the storm events including overtime, materials and outside contractor expenses.

The circumstances necessitating the local emergency have since ceased, making the meeting of the City Council on February 21, 2023 the “earliest possible date that conditions warrant” to terminate the local emergency.

ATTACHMENTS:
7

1. Resolution proclaiming the termination of local emergency related to winter storms/flooding

2. Letter from San Mateo County Department of Emergency Management (Feb. 15, 2023) 8 RESOLUTION NO. C-2023-___

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

TERMINATION OF LOCAL EMERGENCY RELATED TO WINTER STORMS/FLOODING WHEREAS, on January 1, 2022, the Director of Emergency Services (Half Moon Bay City Manager) proclaimed a Local Emergency, which was ratified by the City Council on January 4, 2023, as a result of conditions of extreme peril to the safety of persons and property with the City of Half Moon Bay related to the Severe Storm Events / Local Flooding; and WHEREAS, the situation resulting from said conditions of extreme peril is now deemed to be within control of the normal protective services, personnel, equipment, and facilities of and within the City of Half Moon Bay; and
WHEREAS, the City Council must proclaim the termination of the local emergency at the earliest possible date that conditions warrant under Government Code 8630(d); and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Half Moon Bay hereby proclaims the termination of the local emergency related to the Severe Storm Events / Local Flooding.

I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 21st day of February 2023 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 Deborah Penrose, Mayor
9 Donald J. Mattei
Interim Director
County Government Center
501 Winslow St.

Redwood City, CA 94063
[email protected]
February 15, 2023
Dear Colleagues,
Please see below information and important dates related to the late December/Early January Winter Storms Event. This information is the most pertinent and contains supporting information.

Important dates
Both FEMA and the State have defined the storm emergency period from December 27th, 2022 to January 31st, 2023. Any damage that occurred February 1st or later, even if it can be correlated as having a root cause in the storm period, will not be considered for any disaster cost recovery related to this storm system.

San Mateo County has not yet been included in the Public Assistance Program from FEMA. DEM is monitoring the status of our request for inclusion daily. Once included in the Public Assistance Program under DR-4683-CA, we will hold an Applicant’s Briefing and the 30-day clock for submissions will start. We can request an additional 30 days if our cities/towns and special districts are not finished submitting during the first 30 days.

The Disaster Recovery Center for residents and businesses located in San Mateo County opened on Thursday, February 9th. County services at the DRC will be concluded on February 16th. State services will conclude on February 22nd. FEMA intends to extend service at the DRC through March 16th.

See below for the important disaster relief actions that occurred during the event along with supporting references.

San Mateo County Proclamation Information
January 2
nd
, 2023 - County Executive and Director of Emergency Services, Mike Callagy proclaims a local state of emergency under Governments Code Section 8558 and County ordinance Chapter 2.46. The proclamation is written to be inclusive of all jurisdictions and special districts as well as the county and unincorporated areas.

January 3rd, 2023 - The Board of Supervisors ratifies the proclamation of Local Emergency. The proclamation is to be reviewed for continuation at 60-day intervals and will remain in effect until rescinded. 10 State Proclamation Information
January 4
th
, 2023 - Governor Newsom proclaims under the California Emergency Services Act, and in particular, Government Code section 8625, that a state of emergency exists throughout California.

January 16th, 2023 - Governor Newsom issues State Executive Order N-1-23 bolstering the state’s abilities to deal with the consequences of the storm.

Federal Declaration information
California Severe Winter Storms, Flooding, and Mudslides (EM-3591-CA) Incident Period: January 8, 2023 - January 31, 2023
The Secretary of FEMA determines that the damages in California are significant and approves an emergency declaration on January 9, 2023
California Severe Winter Storms, Flooding, Landslides, and Mudslides (DR-4683-CA) Incident Period: December 27, 2022 - January 31, 2023
Major Disaster Declaration was declared by President Biden on January 14, 2023; at that time the Stafford Act (42 U.S.C. 5121) was enacted for Individual assistance and public assistance in debris removal and emergency protective measures (category A and B claims).

Amendment 5 of the declaration dated January 26th added San Mateo County for Individual Assistance 11 12

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
From: Lisa Lopez, Administrative Services Director
TITLE: WARRANTS FOR THE MONTH OF JANUARY 2023
______________________________________________________________________________ RECOMMENDATION:

Accept the warrants list for the month of January 2023.

STRATEGIC ELEMENT:

This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.

DISCUSSION:

During this month, we processed 4 check runs. The first was on January 4, totaling $78,378. The second was on January 11, totaling $227,482.66. The third was on January 18, totaling $547,204. The fourth was on January 25, totaling $172,463. The total for the month was $1,025,529.

The City processed payments related to 16 capital improvement projects, in a total amount of $165,902.26. These projects include Main Street Bridge, Highway 1 North and South, Poplar Complete Street, Carter Park, Poplar Beach Gateways, Eastside Parallel Trail, Emergency Response Program, Corporate Yard Improvements, Town Center Master Plan, Climate Action and Adaptation, Smith Field Site Assessment, Kehoe/Pilarcitos Outfall Repair, Pump Station and Force Main, Frenchman’s Creek Park Improvements, and Wavecrest Water Main.

Staff is also including a list of all payments above $30,000 processed during this reporting period, as listed in the table below.

ATTACHMENTS:

Check Disbursement List by Check Date
Check # Payee Check Date Payment Amount Description
52170 EL CENTRO DE LIBERTAD 1/18/2023 30,207.86 CARES PROGRAM 52118 AMS SYSTEMS INC 1/11/2023 30,726.04 PRINTING SERVICES [MULTIPLE INVOICES] 52202 HALF MOON BAY GRADING & PAVING 1/25/2023 32,995.05 CORPORATION YARD IMPROVEMENTS 52189 4LEAF INC 1/25/2023 39,576.35 PUBLIC WORKS INSPECTION SERVICES 52185 SEWER AUTHORITY MID-COASTSIDE 1/18/2023 405,956.67 SAM OPERATIONS AND MAINTENANCE Over $30,000
13 City of Half Moon Bay Check Register - Summary HMB Page: 1 Check Issue Dates: 1/1/2023 - 1/31/2023 Feb 09, 2023 05:17PM Report Criteria:

Report type: SummaryCheck.Type = "Calculated"
Check Number Vendor Number Payee Check Issue Date Amount Description 52091 2407 ARAMARK 01/04/2023 521.38 DEC 22', MAINT SUPPLIES52092 444 ASSOCIATION OF BAY AREA GOVERNMENTS 01/04/2023 696.54 TRUE-UP ALLOCATION52093 4300 AT&T MOBILITY 01/04/2023 1,515.66 PHONE SERVICE52094 3526 BIGGS CARDOSA ASSOCIATES INC 01/04/2023 2,306.96 NOV'22, PREPERATION OF PS&E AND ENVIRONMENTAL CLEAR52095 364 COASTSIDE TECHNICAL SERVICE 01/04/2023 1,026.88 MAINT SERVICE52096 4484 CSW/STUBER-STROEH ENGINEERING GROUP INC 01/04/2023 1,750.00 NOV'22, POPLAR STREET TRAFFIC CALMING AND SAFETY PRO52097 1545 GOVERNMENT FINANCE OFFICERS ASSOCIATION 01/04/2023 460.00 CERTIFICATE OF ACHIEVEMENT REVIEW FEE52098 70 GRAINGER 01/04/2023 135.65 MAINT SUPPLIES52099 76 HALF MOON BAY BUILDING & GARDEN 01/04/2023 245.53 MAINT SUPPLIES52100 1853 HDL SOFTWARE LLC 01/04/2023 2,653.00 TOT AND BUSINESS LICENSE MANAGEMENT52101 5509 JESSICA CARLSON 01/04/2023 161.00 INSTRUCTOR PAYMENT 12/22/22 YOGA DROP-INS52102 3083 JOINT VENTURE SILICON VALLEY 01/04/2023 1,800.00 FY 22-23 MEMBERSHIP DUES52103 5444 JOYA CUNHA 01/04/2023 2,000.00 JAN'23, TEMPORARY CONSTRUCTION EASEMENT52104 5517 LAURA CAMODECA 01/04/2023 1,204.00 Payment for Dog Training classes52105 291 LAURIE BECKER 01/04/2023 718.20 INSTRUCTOR PAYMENT- ZUMBA PUNCH CARD52106 1206 MARK THOMAS & CO. INC. 01/04/2023 6,934.88 NOV'22, FY22/23 SEWER SYSTEM MAINTENANCE SERVICES52107 4566 PACIFIC COAST SALES & SERVICE INC 01/04/2023 10,391.00 DEC 22, AERMEC HEAT PUMP ELECTRICAL METERING RETRO52108 3479 PARKEON INC 01/04/2023 51.10 MAINT SERVICE52109 3956 PENINSULA MUNICIPAL ENGINEERING INC. 01/04/2023 22,310.00 AUG'22, PROJECT MANAGEMENT SERVICES FOR EASTSIDE P52110 3951 PUBLIC PARKING ASSOCIATES INC. 01/04/2023 220.00 MAINT SERVICE52111 1665 SAN MATEO CO. DEPT OF PUBLIC WORKS 01/04/2023 90.00 RECORD OF SURVEY52112 5301 SUBURBAN PROPANE LP 01/04/2023 1,715.39 PROPANE52113 3519 SWCA INCORPORATED 01/04/2023 136.50 FRENCHMAN'S RIPARIAN MAPPING52114 5190 Wood Consulting Services 01/04/2023 2,252.50 DEC 22', ECONOMIC RECOVERY52115 4270 4LEAF INC. 01/11/2023 10,043.38 ON-CALL SERVICES52116 2022 ACC BUSINESS 01/11/2023 1,561.82 INTERNET SERVICE52117 3332 AMERICAN DEBRIS BOX SERVICE INC. 01/11/2023 2,978.12 FY22/23 PORTABLE RESTROOMS52118 3793 AMS SYSTEMS INC 01/11/2023 30,726.04 PRINTING SERVICE52119 2407 ARAMARK 01/11/2023 260.69 MAINT SERVICE52120 481 BIG CREEK LUMBER 01/11/2023 416.30 MAINT SUPPLIES52121 5168 BLEYLE ELEVATOR, INC 01/11/2023 190.00 MAINT SERVICE52122 5222 BOUCHER LAW 01/11/2023 952.00 DEC'22, EMPLOYEMENT MATTERS52123 866 BOYS & GIRLS CLUB OF THE COASTSIDE 01/11/2023 1,500.00 EVENT CENTER USAGE52124 4300 CALNET3 01/11/2023 2,196.19 PHONE SERVICE52125 5223 CAPITAL ONE TRADE CREDIT 01/11/2023 2,469.85 MAINT SUPPLIES52126 4193 CASELLE INC. 01/11/2023 3,695.00 ERP CONTRACT SUPPORT & MAINTENANCE M = Manual Check, V = Void Check
14 City of Half Moon Bay Check Register - Summary HMB Page: 2 Check Issue Dates: 1/1/2023 - 1/31/2023 Feb 09, 2023 05:17PM Check Number Vendor Number Payee Check Issue Date Amount Description 52127 3976 CIRCLEPOINT 01/11/2023 875.00 MAY'22, COMPLETE HYATT HOTEL ENVIRONMENTAL IMPACT R52128 5502 CIVICWELL 01/11/2023 7,250.00 INTERN/FELLOW FOR PW SUPPORT52129 3643 CORODATA RECORDS MANAGEMENT INC 01/11/2023 437.38 RECORDS MANAGEMENT52130 3446 FLYERS ENERGY LLC 01/11/2023 890.90 VEHICLE FUEL52131 4633 GRANICUS 01/11/2023 1,490.33 GRANICUS SERVICE52132 76 HALF MOON BAY BUILDING & GARDEN 01/11/2023 572.33 MAINT SUPPLIES52133 89 HALF MOON BAY COASTSIDE CHAMBER OF COM 01/11/2023 15,163.00 OCT'22 OOC BID52134 1853 HDL SOFTWARE LLC 01/11/2023 633.63 BUSINESS LICENSE SOFTWARE52135 1645 HUFFMAN-BROADWAY GROUP INC 01/11/2023 5,795.23 POPLAR BEACH GATEWAYS PLAN52136 4267 IMPEC GROUP INC. 01/11/2023 17,356.00 FY22/23 JANITORIAL SERVICES52137 5390 INTERWEST CONSULTING GROUP, INC. 01/11/2023 4,430.00 CONTRACT PLANNING SERVICES52138 5519 JO FRY 01/11/2023 165.00 CLASS REFUND 01/07/2352139 4293 LOCKWORKS UNLIMINTED INC 01/11/2023 1,345.42 MAINT SERVICE52140 1206 MARK THOMAS & CO. INC. 01/11/2023 16,709.49 CHANGE ORDER 1, HWY1 NORTH SAFETY & OPERATIONAL IM52141 209 MAZE & ASSOCIATES 01/11/2023 5,570.00 DEC'22, AUDIT SERVICES AND CAFR PREPARATION52142 5518 MITCHELL MADARISH 01/11/2023 165.00 CLASS REFUND 1/7/2352143 2014 MOORE IAGOFANO GOLTSMAN INC. 01/11/2023 1,974.41 SUSTAINABILITY-CAAP52144 3872 MUNICIPAL FINANCIAL SERVICES 01/11/2023 4,500.00 MID-POINT ASSESSMENT OF SEWER SERVICE RATES52145 3641 NEIGHBORHOOD RADIO 01/11/2023 55.00 ADVERTISING SERVICE52146 3726 NICOLAS LASZKIEWICZ 01/11/2023 475.00 TRANSLATION SERVICES52147 4472 ON POINT LANGUAGE SOLUTIONS LLC 01/11/2023 975.00 TRANSLATION SERVICES52148 3359 PACIFICA COMMUNITY TELEVISION 01/11/2023 15,400.00 Q2, FY22/23 RECORDING SERVICE52149 5520 PAMELA GALLANT 01/11/2023 165.00 CLASS REFUND 1/7/2352150 3799 PAUL MCGREGOR 01/11/2023 7,100.00 REFUND OVERPAYMENT52151 5020 QUADIENT FINANCE USA, INC 01/11/2023 2,315.29 POSTAGE52152 5403 ROBERT HALF 01/11/2023 560.00 TEMP EMPLOYEE W.Ngo/WEEK ENDING 01/09/23 52153 1064 SAN MATEO CO. PLANNING AND BUILDING DIV 01/11/2023 1,500.00 FY21/22 AIRPORT ROUNDTABLE MEMBERSHIP FEE52154 5193 SAN MATEO COUNTY ELECTIONS 01/11/2023 766.57 CANDIDATE STATEMENT COST-ADAM EISEN52155 3507 SHIRLEY MOORHOUSE 01/11/2023 165.00 CLASS REFUND 1/7/2352156 1760 STEPFORD 01/11/2023 2,850.00 FY22/23 IT SERVICES UNTIL DECEMBER 2022 52157 3717 STERICYCLE SPECIALTY WASTE SOLUTIONS INC 01/11/2023 199.11 MAINT SERVICE52158 3519 SWCA INCORPORATED 01/11/2023 26,690.75 SMITH FIELD & WAVECREST PROJECTS52159 1497 TURBO DATA SYSTEMS 01/11/2023 481.80 CITATION PROCESSING52160 1232 U.S. BANK 01/11/2023 24,264.21 FACITLIY LEASE #ISRF-21-139-A52161 4429 WESTERN EXTERMINATOR COMPANY 01/11/2023 1,207.42 FY22/23 EXTERMINATOR SERVICES52163 4270 4LEAF INC. 01/18/2023 21,784.87 PUBLIC WORKS INSPECTION SERVICES52164 3954 ALTA PLANNING & DESIGN 01/18/2023 5,135.75 PACIFIC COAST BIKEWAY CONNECTIVITY NORTH PROJECT52165 2407 ARAMARK 01/18/2023 260.69 MAINT SUPPLIES52166 4300 AT&T MOBILITY 01/18/2023 10,935.92 PHONE SERVICE52167 5523 AVERY ALLEN 01/18/2023 115.00 CLASS REFUND M = Manual Check, V = Void Check
15 City of Half Moon Bay Check Register - Summary HMB Page: 3 Check Issue Dates: 1/1/2023 - 1/31/2023 Feb 09, 2023 05:17PM Check Number Vendor Number Payee Check Issue Date Amount Description 52168 32 CA DEPT OF TRANSPORTION 01/18/2023 4,335.35 SIGNALS & LIGHTING52169 51 COASTSIDE COUNTY WATER DISTRICT 01/18/2023 4,720.60 CORREAS/LIBRARY52170 3673 EL CENTRO DE LIBERTAD 01/18/2023 30,207.86 CHANGER ORDER 1, CARES PROGRAM52171 3127 FREYER & LAURETA INC. 01/18/2023 3,910.00 WAVECREST WATER MAIN PROJECT52172 76 HALF MOON BAY BUILDING & GARDEN 01/18/2023 489.78 MAINT SUPPLIES52173 3429 HUE & CRY SECURITY SYSTEMS INC. 01/18/2023 221.77 SECURITY SERVICE52174 5441 INNOVATE CONCRETE INC. 01/18/2023 13,283.60 RETENTION, KELLY AVENUE CROSSWALK PROJECT52175 3746 MALCOLM C SMITH 01/18/2023 550.00 DEC'22, COMMUNICATION CONSULTANT52176 4489 MTA PARTS INC. 01/18/2023 17.02 VEHICLE PARTS52177 457 OFFICE DEPOT INC. 01/18/2023 117.65 OFFICE SUPPLIES52178 3956 PENINSULA MUNICIPAL ENGINEERING INC. 01/18/2023 7,552.00 CHANGE ORDER 1, ENGINEERING SERVICES, HWY 1 SOUTH S52179 252 RICE TRUCKING-SOIL FARM INC. 01/18/2023 2,023.44 MAINT SUPPLIES52180 5521 ROBIN TIERNEY 01/18/2023 90.00 CLASS REFUND52181 751 SAN MATEO COUNTY ENVIRONMENTAL HEALTH 01/18/2023 954.00 HEALTH INSPECTION52182 217 SAN MATEO COUNTY INFORMATION SVCS. 01/18/2023 164.50 MICROWAVE SERVICE52183 5522 SARA DOWNALL 01/18/2023 115.00 CLASS REFUND52184 159 SEWER AUTHORITY MID-COASTSIDE 01/18/2023 21,189.33 FY22/23 SEWER COLLECTIONS52185 159 SEWER AUTHORITY MID-COASTSIDE 01/18/2023 405,956.67 SEWER AUTHORITY MID-COASTSIDE OPERATIONS AND MAINT52186 5311 SHERI SAISI 01/18/2023 8.74 UPS STORE/COIL BIND 5 YEAR CIP52187 1760 STEPFORD 01/18/2023 13,065.37 FY22/23 IT SERVICES52189 4270 4LEAF INC. 01/25/2023 39,576.35 PUBLIC WORKS INSPECTION SERVICES52190 3332 AMERICAN DEBRIS BOX SERVICE INC. 01/25/2023 2,580.12 JAN'23, FY22/23 PORTABLE RESTROOMS52191 2407 ARAMARK 01/25/2023 521.38 MAINT SERVICE52192 871 AUTOMATIC DOOR SYSTEMS INC. 01/25/2023 612.50 MAINT SERVICE52193 374 BARKERBLUE DIGITAL IMAGING 01/25/2023 533.31 CARTER PARK IMPROVEMENTS PROJECTS52194 4115 BIG BELLY SOLAR INC 01/25/2023 283.92 JAN '23, SMART TRASH RECEPTACLES52195 5400 Candelario Lopez 01/25/2023 300.00 DEPOSIT REFUND REQUEST FOR OAK ROOM 5/28/2252196 5525 CHARMAINE PINEDA-RONQUILLO 01/25/2023 500.00 DEPOST REFUND FOR TRAIN DEPOT 1/14/202352197 3908 CIVICPLUS 01/25/2023 4,500.00 WEBSITE DESIGN52198 3975 COLANTUONO HIGHSMITH WHATLEY PC 01/25/2023 17,680.50 LEGAL SERVICES -SAM52199 2941 CSG CONSULTANTS INC. 01/25/2023 6,871.25 NPDES STORMWATER SERVICES52200 3127 FREYER & LAURETA INC. 01/25/2023 9,820.00 WAVECREST WATER MAIN PROJECT52201 3836 GLADWELL GOVERNMENTAL SERVICES INC 01/25/2023 500.00 RECORDS RETENTION LEGAL REVIEW52202 2564 HALF MOON BAY GRADING & PAVING INC. 01/25/2023 32,995.05 MAINT SERVICE52203 4441 IGLESIA DEL MAR 01/25/2023 300.00 RESERVATION REFUND GRAND OAK 12/10/202252204 5444 JOYA CUNHA 01/25/2023 2,000.00 TEMPORARY CONSTRUCTION EASEMENT52205 1283 KATHY OLER 01/25/2023 2,226.67 FEB' 23, TEMPORARY CITY PARKING LOT RENTAL52206 2699 KONICA MINOLTA BUSINESS SOLUTIONS 01/25/2023 1,052.47 JAN 23, FY22/23 KONICA MINOLTA LEASE52207 4028 LORAL LANDSCAPING INC. 01/25/2023 4,000.00 JAN 23, FY22/23 MEDIAN MAINTENANCE52208 3069 MANAGED HEALTH NETWORK 01/25/2023 304.00 EAP M = Manual Check, V = Void Check
16 City of Half Moon Bay Check Register - Summary HMB Page: 4 Check Issue Dates: 1/1/2023 - 1/31/2023 Feb 09, 2023 05:17PM Check Number Vendor Number Payee Check Issue Date Amount Description 52209 3934 MITEL 01/25/2023 2,935.71 ANNEX PHONE SERVICE52210 5511 NOEMI RAMIREZ 01/25/2023 500.00 Deposit Refund Request for Grand Oak 12/17/202252211 3479 PARKEON INC 01/25/2023 77.35 MAINT SERVICE52212 5020 QUADIENT LEASING USA, INC. 01/25/2023 437.80 POSTAGE52213 252 RICE TRUCKING-SOIL FARM INC. 01/25/2023 492.18 MAINT SUPPLIES52214 3930 RINCON CONSULTANTS INC. 01/25/2023 4,988.50 JAN' 23 CLIMATE ACTION PLAN ASSISTANCE52215 5403 ROBERT HALF 01/25/2023 4,422.78 TEMP EMPLOYEE S.Vivika /WEEK ENDING 12/09/2252216 3757 SCHAAF & WHEELER 01/25/2023 2,145.00 DEC '22P ELICAN POINT GENERATOR REPLACEMENT52217 3922 SCOTT MCVICKER 01/25/2023 3,360.00 FEB'23 ANNEX RENT52218 3519 SWCA INCORPORATED 01/25/2023 12,629.31 SMITH FIELD & WAVECREST PROJECTS52219 3955 TOWNSEND PUBLIC AFFAIRS 01/25/2023 5,000.00 TOWNSEND PUBLIC AFFAIRS52220 3701 V. W. HOUSEN & ASSOCIATES INC. 01/25/2023 8,317.00 FY22/23 WASTEWATER COLLECTION SYSTEM ENGINEERING S52292 3923 WELLS FARGO 01/04/2023 17,082.46 AMAZON/SUPPLIES Grand Totals:
129 1,025,529.35
Report Criteria:

Report type: SummaryCheck.Type = "Calculated"
M = Manual Check, V = Void Check
17

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Lisa Lopez Rossi, Interim Assistant City Manager
TITLE: RESOLUTION APPOINTING PRIMARY AND ALTERNATE MEMBERS TO

REPRESENT THE CITY OF HALF MOON BAY ON THE PLAN JPA BOARD OF

DIRECTORS
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution appointing the Administrative Services Director (L. Lopez Rossi) and Finance Manager (K. Stiles) to represent the City of Half Moon Bay on the Plan JPA Board of Directors.

FISCAL IMPACT:

There is no fiscal impact associated with adoption of this resolution.

STRATEGIC ELEMENT:

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

BACKGROUND:

Since 1986, the City of Half Moon Bay has participated in the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN) Corporation as a risk pooling agency under the liability risk coverage agreement, to obtain coverage and risk management services related to liability, property, automobile physical damage and other ancillary lines of coverage with ABAG as a member agency Joint Powers Authority.

In 2017 the ABAG’s operations were merged with the Metropolitan Transportation Commission (MTC). On June 23, 2017, ABAG PLAN voted to execute a contract with Bickmore and pursue and implement a transition to a new Joint Powers Authority with the identical purposes of ABAG PLAN Corporation. Since the new Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) replaced ABAG PLAN, all 28-member agencies had to execute the agreement and adopt a resolution to join the PLAN JPA before June 30, 2018, for the PLAN JPA to become fully operational and perform all functions effective July 1, 2018. 18

As of July 1, 2018, PLAN JPA has been in effect as the City’s risk management service provider.

DISCUSSION:

PLAN JPA is currently administered by Sedgwick staff under the direction of a Board of Directors that consists of one staff representative and one alternate from each of the 28-member local government Bay Area agencies. According to the PLAN JPA bylaws, members of the Board of Directors are appointed by the legislative body from each of the member agencies and this representation must be established by a resolution of the City Council.

Staff recommends that the Administrative Services Director and Finance Manager serve as primary and alternate voting members for the PLAN JPA Board of Directors.

ATTACHMENTS:

Resolution appointing directors to PLAN JPA on behalf of the City of Half Moon Bay 19 Resolution No. C-2023-____

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

DIRECTORS TO PLAN JPA ON BEHALF OF THE CITY OF HALF MOON BAY WHEREAS, the City of Half Moon Bay has been a member of Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN) since 1986; and WHEREAS, Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN) Corporation has been replaced by the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA), effective July 1, 2018; and WHEREAS, PLAN JPA is a self-funded insurance pool serving public agencies; and WHEREAS, the operations of these programs are governed by a Board of Directors consisting of one representative from each member agency; and WHEREAS, participation of the Board of Directors is carried out by City staff as part of its regular duties and does not result in any remuneration to the employee.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby designate the following positions as appointees to the PLAN JPA Board of Directors:
********************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of February, 2023 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 Deborah Penrose, Mayor
Title Designation
Administrative Services Director Director
Finance Manager Voting Alternate Director
20 21

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21st, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Lisa Lopez Rossi, Interim Assistant City Manager
Kenneth Stiles, Finance Manager
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH NBS FOR COST ALLOCATION PLAN,

USER FEE STUDY AND DEVELOPMENT IMPACT FEE STUDY
______________________________________________________________________________ RECOMMENDATION:

Authorize the City Manager to execute an agreement with NBS for a cost allocation plan, user fee study and development impact fee study.

FISCAL IMPACT:

The amount of the agreement totals $86,700. This amount was not included in the FY 2022-23 Budget and staff requests a budget adjustment to cover the expenditure using General Fund as the source.

STRATEGIC ELEMENT:

This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.

BACKGROUND:

The Master Fee Schedule is a compilation of City Council approved fees for City services offered to members of the community. These fees assist in covering costs for offering City services that benefit individuals, families, and local non-profits. Local agencies are allowed to set fees at rates that obtain fair and reasonable recovery of costs incurred in providing these services, thereby minimizing or eliminating the use of limited general tax revenues. Historically, the City has sought to maximize cost recovery through the annual setting of fees at appropriate levels, which takes into account the escalating costs of doing business and market comparisons.

Periodically the fees contained in the Master Fee Schedule require a re-evaluation to ensure that they reflect a nexus to their costs and that these fees are still generating sufficient cost recovery. The last full cost allocation plan and study was performed in FY 2014-15. In FY 2017- 18 the City contracted to do an update to the cost allocation plan. 22

Due to rising costs of existing services from inflation and changes in service delivery processes, staff believes it is an appropriate time to update the cost recovery structure of the City.

DISCUSSION:

Staff reached out to two established vendors in the industry for quotes: Revenue & Cost Specialists and NBS. Both firms contacted were reputable and recommended. However, NBS was the sole respondent that provided a quote.

The project timeline of the recovery study is estimated for eight months with fees updated for the Fiscal Year 2024-25 budget. With the goal of project completion by Fall 2023, NBS can meet the City’s timeline and has provided references and work samples from peer organizations similar in size and revenue sources to Half Moon Bay. Due to the specialized nature of a fee study and cost allocation plan, as well as the City’s particular need for these services, NBS was selected due to their expertise in this area and their familiarity with the City’s current fee structure.

ATTACHMENT:

1. Resolution Authorizing the City Manager to execute a contract with NBS for a Cost Allocation Plan, User Fee Study and Development Impact Fee Study 23 Resolution No. C-2023-____

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

CITY MANAGER TO EXECUTE AN AGREEMENT FOR A COST ALLOCATION PLAN, USER FEE STUDY AND DEVELOPMENT IMPACT FEE STUDY WITH NBS.

WHEREAS, the City of Half Moon Bay desires to obtain the services of an independent consultant to prepare a user fee study/cost allocation plan review and development impact fee study; and
WHEREAS, the City of Half Moon Bay followed the recommended procurement policy to select a qualified firm that has agreed to perform the requested services; and WHEREAS, NBS provided a scope of work, budget, and an hourly rate schedule.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Authorizes the City Manager to enter into a contract with NBS to prepare a user fee study/cost allocation plan review and development impact fee study not to exceed $87,600; and
2) Authorizes the Administrative Services Director to make an expenditure budget amendment in the amount of $87,600 within the General Fund. ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 21th day of February 2023 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 Deborah Penrose, Mayor
24

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Interim Public Works Director/City Engineer Jonathan Woo, Assistant Engineer
TITLE: MAIN STREET AND KELLY AVENUE PARCEL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT (433 – 447 MAIN STREET)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution:

1. Approving the Parcel Map for the Main Street and Kelly Avenue Subdivision; and

2. Approving the Subdivision Improvement Agreement for the Main Street and Kelly Avenue Subdivision; and

3. Accepting, on behalf of the Public, the dedicated Public Utility Easement for dry utilities (electric and communication services); and

4. Authorizing the Interim Public Works Director/City Engineer, City Clerk, and Acting City Surveyor, to execute and record the Parcel Map with the office of the San Mateo County Recorder; and

5. Authorizing the City Manager to execute the Subdivision Improvement Agreement between the Developer and the City of Half Moon Bay, along with recording the Agreement with the office of the San Mateo County Recorder.

FISCAL IMPACT:

There is no fiscal impact associated with this action. City staff and consultant charges related to this project are reimbursed by the developer.

STRATEGIC ELEMENT:

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

BACKGROUND:

On March 8, 2022, the City of Half Moon Bay Planning Commission, by Resolution No. P-22-05, conditionally approved the requested Vesting Tentative Subdivision Map (the “Tentative Map”), Coastal Development Permit, and Architectural Review to divide one (1) existing parcel, totaling approximately 15,000 square feet, into three (3) separated parcels with associated 25

improvements, including utilities and sidewalk in the C-D (Commercial, Downtown) Zoning District. The three (3) proposed parcels consist of one (1) existing mixed-use lot, one (1) proposed mixed-use lot, and one (1) lot specific for private parking.

Tony Uccelli (developer) has submitted a Parcel Map (see Attachment 2 to Resolution) and required subdivision improvement plans. The developer will be constructing utility improvements following the Parcel Map recordation and a Subdivision Improvement Agreement (SIA) (see Attachment 3 to Resolution) is required. The SIA guarantees completion of any improvements in the Public ROW, such as utility improvements (sewer, storm drain, water, electric, and communications), sidewalk, curb and gutter, driveway improvements, tree wells, etc., required for the subdivision per plans approved by the Public Works Department, Coastside County Water District, Coastside Fire Protection District, and the Planning Department.

DISCUSSION:

The tentative map and related entitlements were conditionally approved by the Planning Commission on March 8, 2022. The Parcel Map and improvement plans have been reviewed by City staff, Coastside County Water District Staff, Coastside Fire Protection District, and a licensed surveyor to ensure the Parcel Map and related improvement plans comply with the Conditions of Approval and applicable Local and State laws. The Final Map and improvement plans are compliant.

As indicated earlier, the developer will be constructing improvements serving the subdivision’s residents and the public after the recording of the Parcel Map. As such, a Subdivision Improvement Agreement has been prepared and is ready to be executed by the developer. The Subdivision Improvement Agreement will guarantee completion of these improvements by requiring the developer to post adequate security. To ensure the Improvements will be in place after the Parcel Map is signed, the developer has submitted a performance bond, a labor and materials bond, and a warranty bond. The performance and the labor and materials bonds each being $286,505, which is 100% of the estimated cost to construct all Utility and Site Improvements within the Public ROW. The warranty bond being $71,626.25, which is 25% of the estimated cost mentioned above.

The Agreement will also ensure that required improvements are satisfactory to the Interim Public Works Director/City Engineer and other agencies and require the correction of any defects discovered within a one-year period after completion, and submittal of certified “AsBuilt” records. This document is recorded to ensure full disclosure to any future landowners.

The developer will pay for all costs related to the installation of public improvements which consists of design, construction, and inspections.

Chapter 17.48 of the Municipal Code, specific towards Land Dedication for Park and Recreation Purposes, requires the developer to dedicate a certain amount of land towards park and recreation purposes, or a fee in lieu thereof. However, due to California Government Code 26

66477, also known as The Quimby Act, this project is exempt from the above-mentioned Municipal Code due to provision number seven (7), being an apartment complex.

Other fees are established through the Master Fee Schedule. The following are estimated fees paid to date and fees pending prior to building permit issuance are as follows:

Main Street and Kelly Avenue Subdivision Fees
Fee Paid Due
Public Improvement Plan Review $ 12,319.00 $ -
Parcel Map Review $ 6,854.00 $ -
Construction Inspection Fee $ 19,465.00 $ -
Tentative Subdivision Map Review $ 12,933.00 $ -
Subdivision Imp. Agreement $ 3,410.00 $ -
Park Land Dedication/In-Lieu Fee Exempt Exempt
Sewer Connection* $ - $ 119,766.00
Storm Drainage* $ - $ 2,028.00
Traffic Mitigation* $ - $ 25,848.00
Park Facility* $ - $ 44,592.00
Capital Outlay* $ - $ 6,066.00
Subtotal Paid: $ 54,981.00
Subtotal Due: $ 198,300.00
Total Fees: $ 253,281.00
*Collect prior to issuance of Building Permit
The Parcel Map and the Developer offers in dedication that area shown as “Public Utility Easement” (PUE) for the benefit for dry utilities, such as electric and communications services to the property. The City is able to accept the PUE on behalf of the Public. All other easements, such as the private storm drain easements, the parking, access, and surface drainage easements, the 12” wide no build easement, and the trash storage easement are all reserved as private easements and shall be at the sole responsibility of the property owner(s) benefited. All private and reserved easements are not offered, nor they would be accepted, for dedication by the City of Half Moon Bay.

Staff recommends for the City Council to adopt a resolution:

1. Approving the Parcel Map for the Main Street and Kelly Avenue Subdivision; and

2. Approving the Subdivision Improvement Agreement for the Main Street and Kelly Avenue Subdivision; and

3. Accepting, on behalf of the Public, the dedicated Public Utility Easement for dry utilities (electric and communication services); and
27

4. Authorizing the Interim Public Works Director/City Engineer, City Clerk, and Acting City Surveyor, to execute and record the Parcel Map with the office of the San Mateo County Recorder; and

5. Authorizing the City Manager to execute the Subdivision Improvement Agreement between the Developer and the City of Half Moon Bay, along with recording the Agreement with the office of the San Mateo County Recorder.

ATTACHMENT:

1. Resolution approving the Parcel Map and the Subdivision Improvement Agreement for the Main Street and Kelly Avenue subdivision subject to approval as to form of the required securities and insurance

2. Attachment 2 – Parcel Map

3. Attachment 3 – Subdivision Improvement Agreement
28 Resolution No. C-2023-____

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

APPROVING THE PARCEL MAP AND THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE

MAIN STREET AND KELLY AVENUE SUBDIVISION SUBJECT TO APPROVAL AS TO FORM OF THE

REQUIRED SECURITIES AND INSURANCE
WHEREAS, on March 8, 2022, the Planning Commission approved, subject to certain conditions of approval, the Main Street and Kelly Avenue Subdivision project, consisting of a Coastal Development Permit, Architectural Review, and a Vesting Tentative Subdivision Map to allow the subdivision of one (1) existing parcel split into three (3) proposed parcels in the C-D Zoning District at the northeast corner of the intersection of Main Street and Kelly Avenue; and WHEREAS, Tony Uccelli (Developer) has submitted a proposed Parcel Map for said subdivision consisting of three (3) proposed parcels, one (1) existing mixed use lot, one (1) proposed mixed use lot, and one (1) lot specific for private parking (Parcel Map), and has requested City Council approval before completion of the required improvements; and WHEREAS, the Developer has also submitted improvement plans for the required improvements and is ready to execute a Subdivision Improvement Agreement for timely completion of the required improvements and has furnished the required security; and WHEREAS, the Interim Public Works Director and City Engineer has determined that the Parcel Map and Improvement Plans meet the requirements of the Subdivision Map Act and the City Code; and
WHEREAS, on the Parcel Map and the Developer offers in dedication to the City the Public Utility Easement for dry utilities (electric and communication services); and WHEREAS, the Developer has fulfilled all conditions of approval to the City’s satisfaction.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:

1. Approves the Parcel Map, included as Attachment 2, for the Main Street and Kelly Avenue Subdivision; and

2. Approves the Subdivision Improvement Agreement, included as Attachment 3, for the Main Street and Kelly Avenue Subdivision; and

3. Accept, on behalf of the Public, the dedicated Public Utility Easement for dry utilities (electric and communication services); and

4. Authorizes the Interim Public Works Director/City Engineer, City Clerk, and Acting City Surveyor, to execute and record the Parcel Map with the office of the San Mateo County Recorder; and
29 5. Authorizes the City Manager to execute the Subdivision Improvement Agreement between the Developer and the City of Half Moon Bay, along with recording the Agreement with the office of the San Mateo County Recorders. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of February 2023 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 Deborah Penrose, Mayor
30 31
32 1
RECORDING REQUESTED BY     )
AND WHEN RECORDED MAIL TO:   )
)
City of Half Moon Bay       )
501 Main Street        )
Half Moon Bay, California 94019   )
_____________________________________________________________________________________ (Space Above This Line for Recorder’s Use Only)
Exempt from recording fee per Gov. Code Sec 27383

IMPROVEMENT AGREEMENT

CITY OF HALF MOON BAY

MAIN STREET & KELLY AVENUE SUBDIVISION

THIS IMPROVEMENT AGREEMENT (the “Agreement”) is made and entered into on this _____ day of ____________, 203 (the “Effective Date”) by and between “Tony Uccelli” (“Developer”), Ozella Cardoni, or active trustee, of the Cardona Family Trust (“Owner’), and the CITY OF HALF MOON BAY, a California municipal corporation (“City”).

RECITALS
A. On March 8, 2022, the Planning Commission of the City of Half Moon Bay adopted among other approvals, Resolution No. P‐22‐05, approving the Vesting Tentative Parcel Map for the Main Street and Kelly Avenue Subdivision, hereinafter referred to as “(Main & Kelly), prepared by (BKF Engineers dated February 18, 2022) and (“Main Street and Kelly Avenue Vesting Tentative Parcel Map”), subject to certain conditions of approval (the “Conditions”).

B. The Conditions require either (1) that certain public improvements for the (Main Street & Kelly Avenue Subdivision) be constructed prior to approval of the final map, or (2) that Developer enter into an agreement with the City providing for the future construction of such improvements.

C. Developer has submitted the final map and applied to City for final map approval without having completed the required public improvements and therefore will enter into an agreement with the City providing for the future construction and installation of such improvements, as required by Government Code section 66462(a)(1).

D. Developer has submitted to the City plans, specifications, and drawings entitled (Main Street & Kelly Avenue), prepared by (BKF Engineers), dated December 19, 2022, ( the “Improvement Plans”), which, in addition to other improvements, provide for certain on‐site public improvements for the (Main Street & Kelly Avenue Subdivision), (the “Improvements”).

E. Developer is the current fee owner of that certain real property consisting of approximately (0.348 acres) located within the City of Half Moon Bay, County of San Mateo, State of California, described in Exhibit A, attached hereto and incorporated 33 2
herein by reference (the “Property”). Upon approval and recordation of the final map, the Property will be divided into 3 lots and associated parcels intended for residential development.

F. City and Developer desire to enter into an agreement providing for the construction and installation of the Improvements in accordance with the Improvement Plans.

AGREEMENT
NOW, THEREFORE, in consideration of the faithful performance of the terms and conditions set forth in this Agreement, the parties hereto agree as follows:

1. Purpose. The purpose of this Agreement is to guarantee completion of the Improvements and ensure satisfactory performance by Developer of Developer s obligations to satisfy the Conditions pertaining solely to the Improvements.

2. Property Subject to Agreement. The Property shall be subject to this Agreement; provided, however, that from and after acceptance of the Improvements as set forth in Section 12 below, the Property shall be released and no longer subject to this Agreement, and a release shall be executed and recorded by the City.

3. Duty to Install Improvements. Developer shall construct, install and complete, or cause to be constructed, installed or completed, at the Developer’s sole cost and expense, the Improvements, in accordance with the Improvement Plans (defined in Recital D. above) and to the satisfaction of the City Engineer, in his reasonable discretion consistent with the Conditions and Improvement Plans. Developer will also supply all labor and materials therefore, all in strict accordance with the terms and conditions of this Agreement. The construction, installation and completion of the Improvements and all labor and materials furnished in connection therewith are hereinafter referred to collectively as the “Work”.

4. Completion Date. Developer shall complete the Work within one year of the commencement of the Work. All Work shall be completed and in a good and workmanlike manner in accordance with accepted design and construction practices consistent with the Conditions and Improvement Plans. This completion date may be extended by the City in its sole and absolute discretion at the request of the Developer, which request shall be accompanied by a written assurance acceptable to the City Attorney that the securities required by Section 13 shall remain enforceable throughout the term of the extension.

5. Estimated Cost of Work. The engineer’s estimated cost of the Work is $286,505.

6. Modifications to the Plans. Approval of this Agreement by the City does not release Developer of its responsibility to correct mistakes, errors or omissions in the Improvement Plans. If, at any time, in the opinion of the City Engineer, in his reasonable discretion, the Improvement Plans are deemed inadequate in any respect Developer 34 3
agrees to make such modifications, changes or revisions as necessary in order to complete the Work in a good and workmanlike manner in accordance with accepted design and construction standards consistent with the Conditions and Improvement Plans.

7. Repairs. Developer agrees to repair or have repaired in a timely manner at its sole cost and expense all other public or private property damaged as a result of or incidental to the Work or in connection with the development of the project, or to pay to the City or property owner of any damaged property, the full cost of such repair.  In addition, Developer shall obtain the written acceptance of such repair or payment from any owner whose private property was repaired by Developer or to whom Developer has paid the full cost of such repair in accordance with this Section 7. City shall be under no obligation whatsoever to accept the Work completed under this Agreement until such time as all repairs have been completed or have been paid for and written acceptances have been provided to the City Engineer, except as otherwise provided in Section 12.1

8. Foreman or Superintendent. Developer shall give personal attention to the Work. A competent foreman or superintendent, satisfactory to the City Engineer, in his reasonable discretion, with authority to act for and on behalf of Developer, shall be named in writing by Developer prior to commencement of the Work, shall be present on the Property during the performance of the Work and may not be changed without the advance notification to and satisfaction and concurrence of the City Engineer.

9. Examination of Work. All the Work shall be performed to the satisfaction of the City Engineer, in his reasonable discretion consistent with the Improvement Plans. The City and its authorized agents shall, at all times during the performance of the Work, have free access to the Work and shall be allowed to examine the Work and all materials used and to be used in the Work.

10. City’s Inspection, Administration and Testing Costs. Developer shall pay to the City the actual cost for all inspection, administration and testing services furnished by City in connection with this Agreement, including those performed by consultants under contract with the City (the “City Costs”). The estimated City Costs are $15,805.00 (the “Estimated Cost”). Prior to or concurrently with the execution of this Agreement, Developer shall deposit an amount equal to the Estimated Cost with City for the payment of the City Costs. In the event that the Estimated Cost is insufficient to cover the actual City Costs incurred, Developer shall, upon notice in writing by the City Engineer, deposit such additional amount as may be required to pay the City Costs. Any amount of the Estimated Cost, initial deposit or additional amounts deposited remaining after payment of all City Costs shall be returned to Developer. City may, at its discretion, deposit such funds in an interest‐bearing account and retain any and all interest earned.

11. Completion of Work. After Developer (a) completes the Work in accordance with the Improvement Plans and the terms and conditions of this Agreement, and (b) repairs any 35 4
private or public property (other than public roads and streets) damaged as a result of the Work or pays the full cost of such repair to the owner whose property was damaged and (c) obtains the written acceptance of such repair or payment from any owner whose private property was repaired by Developer or to whom Developer paid the full cost of such repair, Developer will provide City with a written notice of completion, together with copies of all written acceptances, if any.

12. Final Acceptance.

12.1 Notice of Completion. Within thirty (30) days of receipt of Developer’s written notification pursuant to Section 11 above, City Engineer shall inspect the Work and repairs and review the written acceptances, if any, and send Developer a written notice stating whether the Work and repairs are complete to the satisfaction of the city Engineer, in his reasonable discretion, and whether the written acceptances have been provided.  If the Work and repairs are, in the opinion of the City Engineer, not complete and satisfactory, and/or written acceptances have not been provided, the City Engineer shall list the deficiencies that must be corrected to find the Work and repairs complete and satisfactory. Upon satisfactory completion of the Work and repairs and submittal of written acceptances, the City Engineer shall send Developer a written notice of satisfactory completion. The requirement for written acceptances may be waived by the City Engineer, in his reasonable discretion, if Developer has made commercially reasonable efforts to obtain such acceptances.

12.2 Acceptance of Improvements. After sending Developer a written notice of satisfactory completion pursuant to Section 12.1, the City Engineer shall recommend acceptance of the Improvements to the City Council. The acceptance of the Improvements shall be by resolution of the City Council, with the hearing on said resolution held within thirty (30) days of the City Engineer’s written notice of satisfactory completion. Upon adoption of such resolution, the City Engineer shall promptly record a notice of acceptance, in a form to be approved by the City Attorney, in the Official Records of San Mateo County.  Alternately, the City may in its sole discretion request that Developer deliver to the City a quitclaim deed conveying the fee interest in the Improvements and, as appropriate, the underlying real property; Developer shall promptly deliver the requested deed.  The Improvements shall be deemed to be “Finally Accepted” upon recordation of such notice and/or deed.

13. Performance, Labor and Materials and Warranty Security. Developer shall furnish and deliver to the City, within the times set forth below, the following surety bonds, each of which must be issued by a surety company duly and regularly authorized to do general surety business in the State of California, or such other surety as may be acceptable to the City Attorney.

13.1 Performance Bond. Developer shall furnish and deliver a performance surety bond in the amount of $286,505 (100% of estimated “hard” cost of completion of the construction and installation of the Improvements and the installation of monuments as 36 5
required by the Final Map, as determined by the City Engineer) concurrently with the execution of this Agreement, which bond must meet the requirements of Government Code Section 66499.1 and be reasonably acceptable to the City Attorney. The bond shall be conditioned upon the faithful performance of this Agreement with respect to the Work and shall be released by the City upon final acceptance of the Improvements as described in Section 12.2 and Developer’s delivery of the Warranty Bond described in Section 13.3.

13.2 Labor and Materials Bond. Developer shall furnish and deliver a labor and materials surety bond in the amount of $286,505 (100% of estimated “hard” cost of completion of the construction and installation of the Improvements and the installation of monuments as required by the Final Map, as determined by the City Engineer) concurrently with the execution of this Agreement, which bond must meet the requirements or Government Code Section 66499.2 and be acceptable to the City Attorney. The bond shall secure payment to the contractor(s) and subcontractor(s) performing the Work and to all persons furnishing labor, materials or equipment to them. The City shall retain the bond until both (i) the City accepts the Work in accordance with Section 12 above and (ii) the statute of limitations to file an action under Civil Code section 3114 et seq. has expired. After said date, the bond may be reduced by the City Engineer to an amount not less than the total amount claimed by all claimants for whom claims of lien have been recorded and notice given in writing to the City Council. The balance of the bond shall be retained until the final settlement of all such claims and obligations.  If no such claims have been recorded within the statutory time limits, the bond shall be released in full by the City Engineer.

13.3 Warranty Bond. Developer shall furnish and deliver a warranty bond in the amount of $72,000 (25% of estimated “hard” cost of completion of the construction and installation of the Improvements, as determined by the City Engineer) upon Final Acceptance of the Improvements and prior to release of the Performance Bond. The bond shall be in a form reasonably acceptable to the City Attorney and shall guarantee and warrant the Work for a period of two (2) years following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished.

14. Warranty Period; Repair and Reconstruction. Without limiting the foregoing, Developer expressly warrants and guarantees all Work performed under this Agreement and all materials used in the Work for a period of two (2) years after final acceptance in accordance with Section 12. If, within this two (2) year period, any Improvement or part of any Improvement installed or constructed, or caused to be installed or constructed by Developer, or any of the Work done under this Agreement, fails to fulfill any of the requirements of the Improvement Plans or this Agreement, Developer shall, without delay and without cost to City, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Work or Improvement to the satisfaction of the City Engineer. Should Developer fail to act promptly or in accordance with this requirement, or should the exigencies of the situation require repairs, replacements or reconstruction 37 6
to be made before Developer can be notified, City may, at its option, make the necessary repairs, replacement or perform the necessary reconstruction and Developer shall pay to the City upon demand the actual cost of such repairs, replacements or reconstruction.  The warranty provided in this section shall survive the termination of this Agreement.

15. Maintenance.  At all times prior to Final Acceptance, Developer shall be solely responsible for the maintenance of the Improvements.

16. Developer Not Agent of City. Neither Developer nor Developer’s contractors, subcontractors, agents, officers, or employees are agents or employees of City and the Developer’s relationship to the City, if any, arising here from is strictly that of an independent contractor.

17. Indemnification. Developer agrees to indemnify, defend and hold the City, its elective and appointed boards, commission, officers, agents, employees and consultants, harmless from and against any and all claims, liabilities, losses, damages or injuries to persons or property of any kind, including the reasonable costs to the City of carrying out the terms of any judgment, settlement, consent decree, or other partial or complete termination of an action or procedure that requires the City to take any action (collectively, “Claims”) arising out of (a) Developer’s or Developer’s contractors’, subcontractors’, agents’ or employees’, acts, omissions, or operations or (b) the non‐ compliance of the Improvements with any applicable federal, State, or local law.  The aforementioned indemnity shall apply regardless of whether any insurance required under this Agreement is applicable to any Claims.  The City does not and shall not waive any of its rights under this indemnity provisions because of its acceptance of the bonds or insurance required under the provisions of this Agreement.  The indemnification herein shall survive termination of this Agreement.

18. Insurance.
a. Developer shall require each and every design consultant involved in the design of the Improvements to carry errors and omissions insurance coverage (primary as to City) as to such involvement in the minimum amount of two million dollars ($2,000,000) and subject to requirement to provide extended claim reporting provision in the insurance policy (“tail coverage”).
b. Developer shall maintain Comprehensive Liability Insurance protecting the City from incidents as to bodily injury liability and property damage liability that may occur as a result of the Work and additional warranty repairs. Developer shall provide a certificate of insurance to City before any Work commences. The insurance policy shall contain, or be endorsed to contain, the following provisions:
(1) The City, its officers, officials, employees, consultants and agents are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of Developer. The coverage shall contain no special limitations on the scope 38 7
of protection afforded to the City, its officers, officials, employees, consultants and agents.
(2) The amounts of public liability and property damage coverage shall not be less than $2,000,000 (Two Million Dollars) per occurrence for bodily injury, personal injury and property damage.  Coverage shall include Contractual Liability, owners’ and contractors’ protection, products an operations coverages, and Premises and Operations Liability with no explosion, underground, or collapse exclusions. (3) The insurance shall be maintained in full force until the City Engineer issues a notice of satisfactory completion pursuant to Section 12.1 above. (4) The insurance policy shall provide for 30 days notice of cancellation to the City. The policy shall not be cancelled earlier than nor the amount of coverage be reduced earlier than 30 days after the City receives, notice from the insurer of the intent of cancellation or reduction.
(5) Any failure to comply with the reporting provisions of the policy shall not affect the coverage provided to the City, its officers, officials, employees, consultants and agents.
(6) Developer’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, consultants and agents. Any insurance or self‐ insurance maintained by the City, its officers, officials, employees, consultants or agents shall be in excess of Sub‐divider’s insurance and shall not contribute to it. If commercially available, the insurance policy shall contain a waiver of subrogation for the benefit of the City.
(7) In the event that Developer’s insurance is cancelled, Developer shall provide replacement coverage or all Work must cease as of the cancellation date until replacement insurance coverage is provided.
(8) Any deductibles or self‐insured retentions shall be the Developer’s responsibility to pay; any such deductible or self‐insured retention greater than $50,000 shall be approved by the City Manager.
(9) The insurer shall waive its right of subrogation against the City. Developer hereby waives all rights against the City for loss or damage to the extent covered by the insurance required under this Agreement.
(10) Prior to commencing Work and upon request by the City, Developer shall provide a Certificate of Insurance with endorsements showing compliance with the requirements of this Agreement.

19. Worker’s Compensation and Employers’ Liability Insurance. Developer shall provide, or cause to be provided, Workers’ Compensation insurance as required by law, including $1,000,000 Employers’ Liability coverage and shall cause its contractors and their subcontractors, agents and representatives to also maintain such insurance as required 39 8
by law.  No Work shall commence until such Workers’ Compensation insurance is obtained and in full force and effect.

20. Compliance with Laws. Developer shall comply with all federal, state and local laws, ordinances and regulations in the performance of this Agreement. Developer shall, at its own cost and expense, obtain all necessary permits and licenses for the Work, give all necessary notices, pay all fees and taxes required by law and make any and all deposits legally required by those public utilities that will serve the residential development on the Property. Copies and/or proof of payment of said permits, licenses, notices, fee and tax payments and deposits shall be furnished to the City Engineer upon request.

21. Encroachment Permits. Developer shall obtain, at its sole cost and expense, any encroachment permits required by the City in order to perform the Work.

22. Payments. Developer agrees that it will pay, when due, all those furnishing labor or materials in connection with the Work. Developer further agrees that pursuant to Government Code section 66499.7, the Labor and Materials Bond provided by Developer in accordance with Section 13.1 of this Agreement shall not be released if any mechanics liens or stop notices are outstanding, unless said liens are released by bond in compliance with Civil Code section 3143.

23. Notice of Breach and Default. The occurrence of any of the following constitutes a breach and default of this Agreement:
(1) Developer refuses or fails to complete the Work within the time set forth herein or abandons the Work.
(2) Developer assigns the Agreement in violation of Section 29 below. (3) Developer is adjudged bankrupt or makes a general assignment for the benefit of creditors, or a receiver is appointed in the event of Developer’s insolvency. (4) Developer or Developer’s contractors, subcontractors, agents or employees, fail to comply with any terms or conditions of this Agreement.
(5) Any delay in the construction of any portion of the Work or repairs, which in the reasonable opinion of the City Engineer, endangers public or private property. (6) Developer fails to maintain insurance in the amounts and subject to the terms required in Sections 18 and 19 above.

The City may serve written notice of breach and default upon Developer and the financial institution holding the bonds.

24. Opportunity to Cure. If the City gives Developer notice under Section 23 of breach and default of this Agreement, Developer shall have 30 days within which to correct, remedy or cure the default. If the written notification states that the problem is urgent and relates to the public health and safety, then Developer shall have 24 hours to correct, remedy or cure the default, If Developer does not cure the default within the applicable timeframe, the City may pursue the remedies set forth in Section 25 below. 40 9

25. Remedies.

25.1   City may proceed to complete the Work by contract or other method the City considers advisable at the sole expense of Developer.  Developer, immediately upon demand, shall pay the costs and charges related to the Work and any subsequent repairs. City, without liability for doing so, may take possession of and utilize in completing the Work and repairs, if any, such materials and other property belonging to the Developer as may be on or about the Property and necessary for completion of the Work.  Developer hereby grants the City an easement, effective upon the running of the 30‐day cure period for an uncured default under Sections 23(1) –(5) above, to enter the Property as necessary to complete the Work.  In the event of default, the financial institution holding the bonds shall be liable to City to pay the face amount of the bonds, as specified under Section 13.

25.2 City may bring legal action to compel performance of this Agreement and recover the cost of completing the Work and/or repairs, if any, including City’s administrative and legal costs or pursue any other action at law or equity.

25.3 Developer agrees that if legal action is brought by City under this section of the Agreement, Developer shall pay all of the costs of suit, reasonable attorney fees, arbitration costs and such other costs as may be determined by the court or arbitrator.

25.4   No failure on the part of City to exercise any right or remedy hereunder shall operate as a waiver of any right or remedy that City may have hereunder.

25.5 The rights and remedies of City are cumulative, and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default.

26. Final Drawings. Upon completion of the Work and prior to Final Acceptance, Developer shall deliver to City a set of “As‐Built” drawings as required by the Conditions. These drawings shall be in a form reasonably acceptable to the City Engineer, shall be certified as being “As‐Built” and shall reflect the Work as actually constructed, with any and all changes incorporated therein. Said drawings shall be signed and sealed as accurate by the engineer of record.

27. Attorney Fees. Should any legal action or arbitration be brought by either party because of breach of this Agreement or to enforce any provision of this Agreement, the prevailing party shall be entitled to all costs of suit, reasonable attorney fees, arbitration costs and such other costs as may be determined by the court or arbitrator.

28. Notices. Formal written notices, demands, correspondence and communications between City and Developer shall be sufficiently given if: (a) personally delivered; or (b) dispatched by next day delivery by a reputable carrier such as Federal Express to the office of City and Developer indicated below, provided that a receipt for delivery is provided; or (c) if dispatched as first class mail, postage prepaid, to the offices of City and Developer indicated below. Such written notices, demands, correspondence and communications may be sent in the same manner to such persons and addresses as 41 10
either party may from time‐to‐time designate by next day delivery or by mail as provided in this section.

City:       City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94109
Attn: City Manager
With a copy to:   City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94109
Attn: City Attorney
Developer:     Tony Uccelli
575 Alameda
San Carlos CA 94070
Notices delivered by deposit in the United States mail as provided above shall be deemed to have been served two (2) business days after the date of deposit if addressed to an address within the State of California, and thee (3) business days if addressed to an address within the United States but outside the state of California.

29. Transfers; Assignments. Developer may not assign its obligations under this Agreement without the prior written approval of the City, which approval shall not be unreasonably withheld. In connection with any such assignment, Developer and its assignee shall execute and deliver to City a written assignment and assumption agreement in a form reasonably acceptable to the City Attorney.

30. Binding Upon Heirs, Successors and Assigns. Subject to the transfer restrictions set forth in Section 29, the terms, covenant and conditions of this Agreement shall be binding upon all heirs, successors and assigns of the parties hereto.

31. Headings. Section headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants or conditions contained in this Agreement.

32. Severability. If any provision of this Agreement is held, to any extent, invalid, the remainder of this Agreement shall not be affected, except as necessarily required by the invalid provision, and shall remain in full force and effect.

33. Entire Agreement. The terms and conditions of this Agreement constitute the entire agreement between City and Developer with respect to the matters addressed in this Agreement. This Agreement may not be altered, amended or modified without the written consent of all parties hereto.
42 11

34. Governing Law; Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions.

Any legal actions under this Agreement shall be brought only in the Superior Court of the County of San Mateo, State of California.

35. Authority. Each party executing this Agreement on behalf of a party represents and warrants that such person is duly and validly authorized to do so on behalf of the entity it purports to bind and if such party is a partnership, corporation or trustee, that such partnership, corporation or trustee has full right and authority to enter into this Agreement and perform all of its obligations thereunder.

36. Time is of the Essence. Time is of the essence of this Agreement and of each and every term and condition hereof.

37. Runs with the Land; Recordation. This Agreement pertains to and shall run with the Property. Upon execution, this Agreement shall be recorded in the Official Records of San Mateo County. Upon City Final Acceptance of the Improvements, a written statement shall be recorded by the City in the Official Records of San Mateo County terminating this Agreement and releasing all of the Property as set forth in Section 2 above. The recorded written statement does not release the parties from obligations that survive termination of the Agreement, including indemnification.

38. Domestic Water System. The City and Developer acknowledge and agree that the public domestic water system for the Property (the “Water System”) is also shown on the Improvement Plans, but is not subject to this Agreement. The Water System will be the subject of a Water Service Agreement by and between the Developer and Coastside County Water District, which district (as opposed to the City) has jurisdiction over plan approval, construction, bonding and acceptance of the public domestic water system.

43 12
IN WITNESS WHEREOF, City and Developer have executed this Agreement as of the Effective Date.
“CITY”
CITY OF HALF MOON BAY, a California
municipal corporation
Dated: ________________________   By:_____________________________ Matthew Chidester, City Manager
(City Council Action dated ________)
ATTEST:
_______________________________
Jessica Blair, City Clerk
APPROVED AS TO FORM:
_______________________________
Catherine Engberg, City Attorney

Dated: ____________________________ Developer:   TONY UCCELLI

By:________________________________
Name:_____________________________
Title:______________________________
Dated: ____________________________ Owner:  Ozella Cardoni, or acting trustee, The Cardoni Family Trust – Dated 4/17/1996

By:________________________________
Name:_____________________________
Title:______________________________
44 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jessica Blair, Communications Director / City Clerk Catherine Engberg, City Attorney
TITLE: FORMATION OF A TEMPORARY AD HOC HOUSING COMMITTEE ______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing creation of a temporary Ad Hoc Housing Committee and confirming Mayor Penrose and Vice Mayor Jimenez as members.

FISCAL IMPACT:

There is no fiscal impact associated with this action. It is hoped that the temporary Ad Hoc Committee will assist the City in securing funding and potential resources necessary to meet permanent housing needs of those individuals and families displaced by the January 23, 2023 Shooting Incident and other essential workers on the Coastside.

STRATEGIC ELEMENT:

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

BACKGROUND/DISCUSSION:

On January 23, 2023, the community was impacted by a mass shooting event. This event took the lives of seven and severely injured another local community member who were all employed on local farms. In addition to those persons, the incident impacted 19 households comprising a total of 38 people. All these individuals were displaced from their makeshift residences located on the two farms.

At its February 7, 2023 meeting, the City Council received an action report on the shooting incident and the status of the displaced families. During that discussion, the need for an ad hoc committee was identified to allow for the Mayor and Vice Mayor to conduct work on emergency housing efforts on behalf of the City Council. City staff will schedule regular updates throughout the course of this committee’s work to ensure the community and Council are apprised of efforts and progress around housing needs for the Coastside’s essential workforce. 45 Local non-profits, government agencies, legislators, and volunteers have worked continuously since the event to bring services and support to the impacted families. San Mateo County initially placed these households in local hotels. They have since been relocated to interim local residences under Airbnb.com, a non-profit program. These families will be relocated into longer-term interim housing for approximately one year. At present, the City and County are pursuing sites and projects that have the ability to add needed housing within one to two years to assist displaced households and, where possible, additional farmworker and service worker households in need of safe and affordable housing opportunities. Housing options that are likely to produce permanent solutions in this window of time will likely be modular and/or prefabricated units. Staff have identified multiple sites that can accommodate between 5-10 units and one site with capacity for 32 modular units.

City staff are focused on investigating housing solutions during this emergency that: (1) will be implemented swiftly; faster than typical multi-unit housing development; (2) provide a bridge to or immediately provide long-term housing; and (3) improve access to safe and stable housing.

The purpose of the temporary Ad Hoc Housing Committee is to assist City staff in refining housing opportunity sites, soliciting funding from all potential sources (including federal, state, county, and philanthropic sources) and advocating for regulatory and related changes to facilitate development of affordable housing for those displaced by the incident as well as others in need of more stable, safe, and permanent housing.

The City Council is seeking to form the temporary Ad Hoc Committee to address the immediate and acute challenges of re-housing displaced individuals. In addition, the event has shined a light on the housing conditions faced by many essential workers in Half Moon Bay and the Coastside which also acutely need assistance.

This temporary Ad Hoc Committee will be short-term, potentially six months, at which time the progress on this effort will be re-assessed and the Council will be briefed on needed next steps.

ATTACHMENT:

Resolution authorizing the creation of a temporary City Council Ad Hoc Housing Committee 46 Resolution No. C-2023-____

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

CREATION OF A TEMPORARY CITY COUNCIL AD HOC HOUSING COMMITTEE WHEREAS, On January 23, 2023, there was a tragic mass shooting event resulting in a total of 19 households (38 individuals) displaced from their residential units located on the two farms where the shooting took place; and
WHEREAS, City staff are focused on investigating housing solutions during this emergency that: (1) will be implemented swiftly; (2) will provide a bridge to or immediately provide longterm housing; and (3) improve access to safe and stable housing; and WHEREAS, The City Council of Half Moon Bay identified a need for a temporary ad hoc housing committee at its February 7, 2023 meeting; and
WHEREAS, a temporary ad hoc housing committee is necessary to address immediate and acute issues related to re-housing displaced individuals from the community.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council hereby establishes a temporary ad hoc housing committee, and appoints Mayor Penrose and Vice Mayor Jimenez to serve as members of the committee.
********************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of February, 2023 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 Deborah Penrose, Mayor
47

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jill Ekas, Community Development Director
Mike Noce, Housing Coordinator
TITLE: 555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT –

PREDEVELOPMENT LOAN AGREEMENT WITH MERCY HOUSING
______________________________________________________________________________ RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute a predevelopment loan agreement between the City and Mercy Housing California 110, L.P., a California limited partnership, in an amount not to exceed $1,000,000 from the Affordable Housing Fund, to support predevelopment activities for an affordable housing development project on City-owned land at 535 and 555 Kelly Avenue.

FISCAL IMPACT:

The requested action authorizes the use of up to $1 million of the City’s Affordable Housing Fund (AHF) to support predevelopment costs (Attachment 3) associated with an affordable housing project proposed on 555 Kelly Avenue and adjacent City-owned lands. Attachment 3 outlines two sources for predevelopment funding, $1 million from the City and $1.5 million from the County of San Mateo. The County’s funding originates from American Rescue Plan Act (ARPA) funds, which were earmarked specifically for farmworker housing within San Mateo County. The proforma indicates an ongoing annual operational subsidy of approximately $500,000 will be needed upon completion of construction. This does not imply the City would provide financial support for the subsidy; however, the source of financing support is unknown at this time. While many affordable housing projects require similar subsidies, the 555 Kelly Avenue project is unique in that all of the units are intended for acutely- and extremely-low income households, the lowest income categories. Therefore, revenue collected via typical tenant rent will not cover operating costs. This is a necessary and expected subsidy to provide long-term, affordable housing to the farmworker population.

STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety, and Inclusive Governance Elements of the Strategic Plan.
48

BACKGROUND:
555 Kelly Avenue was purchased by the City in 2017. It is a rectangular parcel located south of the City’s Ted Adcock Community Center adjacent to Shoreline Station. The property contains a single-family home which has been vacant since prior to the City’s acquisition of the property and is currently used for storage by the City. The property’s lot area is approximately 6,200 square feet and abuts the City’s parking lot located on the south side of the Ted Adcock Community Center at 535 Kelly Avenue. Staff worked with the City’s housing consultant to prepare a Request for Qualifications (RFQ) to solicit affordable housing development interest for the Site. The RFQ was released on February 15, 2022, and closed on May 23, 2022. The RFQ was posted on the City website at this link.
1 Despite extensive outreach to publicize the RFQ to local affordable housing developers, the City received only one submittal from a two-agency team comprised of Mercy Housing and Ayudando Latinos A Soñar (ALAS). As proposed, the development includes 40 units of affordable farmworker housing as well as 2,050 square feet of space for a Farmworker Resource Center, which would be staffed and managed by ALAS. The proposed building would be four stories in height, with parking and the resource center on the ground floor. Community space and management offices would be provided on the second floor. Mercy Housing proposes to develop the property and deliver ongoing property management and resident services. ALAS will be a vital partner throughout the development process, including community outreach and marketing in addition to operating the resource center.

On October 4, 2022, City Council adopted two resolutions. One resolution declared the Site as "exempt surplus” land as required by the California Surplus Land Act (SLA). SLA obligates local agencies to make publicly owned land available for affordable housing before selling or leasing the property for other purposes. Local governments such as the City of Half Moon Bay, who plan to produce affordable housing via their own public bidding process, may declare property as exempt. The second resolution authorized the City Manager to execute an Exclusive Negotiations Agreement (ENA) between the City and Mercy Housing. The execution of a predevelopment loan agreement (being considered as part of this report) was contained within a Schedule of Performance attached to the ENA.

Impacts of the January 23, 2023 Incident
Local non-profits, government agencies, and volunteers have worked continuously since the mass shooting event on January 23rd to bring services and support to impacted families. The City (in partnership with the County of San Mateo) is working diligently to identify both immediate and long-term housing solutions. The typical development timelines for a project such as 555 Kelly Ave. can be lengthy; however, the proposed combination of permanent affordable housing with onsite resources is expected to benefit all farmworkers in the longterm, and the recent event highlights the need for this type of housing on the Coast. The City is working expeditiously to identify near-term housing solutions, with quicker occupancy than 555 Kelly Ave., to bring much needed housing to impacted households from the incident, in addition 1 555 Kelly Avenue - Affordable Housing RFQ | Half Moon Bay, CA (half-moon-bay.ca.us) 49

to assisting farmworkers and service industry workers throughout the Coastside. Near-term projects are not the focus of this report; however, staff is acknowledging the importance of those efforts and our commitment to that work.

DISCUSSION:

The proposed Project includes a mix of studio and one-bedroom units serving households of 1-3 persons, depending on unit size. Table 1, below, illustrates the maximum income, depending on household size, for each income category according to income limits released annually by the California Housing and Community Development Department (HCD) for San Mateo County.

As in most affordable housing developments, households generally pay 30% or less of their annual income toward housing costs, including rent and utilities. Farmworkers are considered a special housing needs group due to their limited income and vulnerability to the high cost of market rate rents. Because of their anticipated extremely-low /acutely-low incomes, Mercy Housing and ALAS intend to seek rental subsidies to assist the tenants and provide additional stability, therefore preventing potential homelessness and overcrowded living conditions for this population.

Table 1: San Mateo County 2022 Income Limits (1 to 3 Person Households) Income Category Household Size and Income Limits
1 2 3
Acutely Low Income (15% AMI) $17,450 $19,900 $22,400
Extremely Low Income (30% AMI) $39,150 $44,750 $50,350
Very Low Income (50% AMI) $65,250 $74,600 $83,900
Median Income $116,200 $132,800 $149,400
Source: https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf To produce affordable housing that meets the needs of the lower income populations described above, it is common for affordable housing developers to layer a several funding sources to reach financial feasibility. Funding of predevelopment activities provides criticaltiming support to expedite project initiation. Predevelopment activities include tasks such as preparing a detailed predevelopment budget and preliminary financial analysis for the construction of the development; developing architectural plans and preliminary engineering; preparing soils and environmental reports; developing plans for the programming, unit mix, occupancy and affordability restrictions; and developing and implementing community outreach and engagement plans.

For projects which intend to seek Low-Income Housing Tax Credit financing, such as the one contemplated at the Site, it is typical for the developer to form a wholly-owned affiliate to carry out the development work and secure financing. Mercy Housing has formed such an affiliate, Mercy Housing California 110, L.P., a California limited partnership. The general partner of this affiliate is Mercy Housing California 110, LLC, a California limited liability company, of which Mercy Housing Calwest, an affiliate of Mercy Housing California, is its sole member/manager. 50

Predevelopment Loan and Funding Terms
Attachment 3 provides a breakdown of predevelopment costs. The predevelopment loan amount of $1 million from the City would represent a large portion of the $2.5 million total of predevelopment cost for the Project. The City Council retains sole discretion to award funds from the City’s Affordable Housing Fund. San Mateo County has committed $1.5 million in ARPA funds to the Project for predevelopment activities. These funds represent the remainder of the local funds needed to complete predevelopment work.

Proposed loan terms for the City’s contribution to predevelopment costs are as follows:

Borrower: Mercy Housing California 110, L.P., a California limited partnership Loan amount: $1,000,000.00
Interest rate: 0%
Recourse/nonrecourse: Loan will be nonrecourse
Initial term: Two years; loan agreement may be extended twice, each time for an additional 90- day period
Repayment of predevelopment loan during initial term: Monthly payment will be deferred during the predevelopment period unless there is an uncured default by the borrower. No prepayment penalty or fee if prepayment is made.

Conversion to permanent loan: If all predevelopment milestones are successfully completed, predevelopment loan may be converted to a permanent loan, secured by a deed of trust against the Borrower’s leasehold interest in the Property, with a term of 55 years from date of certificate of occupancy.

Repayment of permanent loan: The permanent loan Interest and principal is to be repaid from the cash flow from Project operations.

The Mercy Housing financing proforma (Attachment 4) outlines a total City funding commitment of $2 million, in addition to a long-term lease of the land, inclusive of the predevelopment loan amount. Mercy Housing will seek additional funding from several sources, including low-income tax credits, State HCD funds, and the County, for the construction phase of the Project, estimated at $33.7 million. The proforma indicates an ongoing annual operational subsidy of approximately $500,000 will be needed upon completion of construction. This does not imply the City would provide financial support for the subsidy; however, the source of financing support is unknown at this time.

With regard to securing the $1.5 million of County predevelopment funding for the Project, Staff will need to return to City Council for consideration of a resolution authorizing the City Manager to execute a grant agreement with San Mateo County and then a subsequent funding agreement with Mercy Housing. Staff is working closely with the County to discuss the terms of 51

the grant agreement with the expectation of returning to City Council within the next two months.

SUMMARY:

During the predevelopment phase of the Project, specific unit type/mix, site features and building design characteristics will be explored to ensure site plans meet Project requirements.

The Project will also involve expanding the Workforce Housing Overlay in the City’s Certified Local Coastal Land Use Plan (LCLUP) for this site and implementing an associated zoning amendment. Parking requirements will also need to be studied and addressed through the local Coastal Development Permit process. Staff will continue to evaluate the Project in relation to zoning provisions outlined in the Local Coastal Land Use Plan, including the Workforce Housing Overlay that supports agriculture as a Coastal Act priority use. The local Coastal Development Permit is subject to review and approval by the Planning Commission following input from the Architectural Advisory Committee. Staff will continue to update the City Council regarding the Project and ongoing work efforts.

The cost of land, construction, and development fees are typically identified as constraints to producing below market rate (affordable) housing development. As previously mentioned, it is common for affordable housing development to rely on multiple funding sources and other contributions to reach a financially feasible project. In addition to the above constraints, affordable housing unit rents do not allow the operator to collect the same amount of income that a market rate development would expect to collect, which contributes to the need for affordable housing developers to partner with local jurisdictions. For this Project, the incomes of the resident population will be within the lowest income categories, increasing the need for the developer to secure financial support and other financing, such as tax credits.

ATTACHMENTS:

1. Resolution authorizing the City Manager to execute a predevelopment loan agreement between the City and Mercy Housing California 110, L.P., a California limited partnership , in an amount not to exceed $1,000,000 from the Affordable Housing Fund, to support predevelopment activities for an affordable housing development project on City-owned land at 535 and 555 Kelly Avenue.

2. Predevelopment Loan Milestone Schedule

3. Mercy Housing Predevelopment Costs

4. Mercy Housing Project Financing Proforma
1532569.2
52 Resolution No. C-2023-____

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A PREDEVELOPMENT LOAN AGREEMENT BETWEEN THE CITY AND MERCY HOUSING CALIFORNIA 110, L.P., A CALIFORNIA LIMITED PARTNERSHIP, IN AN AMOUNT NOT TO EXCEED $1,000,000 FROM THE AFFORDABLE

HOUSING FUND, TO SUPPORT PREDEVELOPMENT ACTIVITIES FOR AN AFFORDABLE HOUSING DEVELOPMENT PROJECT ON CITY-OWNED LAND AT 535 AND 555 KELLY AVENUE.

WHEREAS, the City of Half Moon Bay (“City”) owns two parcels located at 555 Kelly Avenue and 535 Kelly Avenue. (Assessor Parcel Numbers 056-150-200 and 056-150-220); and WHEREAS, the City wishes to create an affordable housing site of approximately 17,000 square feet, using the entire property located at 555 Kelly Avenue and a portion of the property located at 535 Kelly Avenue, incorporated herein by reference (the “Site”); and WHEREAS, on February 15, 2022 the City issued a Request for Qualifications (“RFQ”) for the development of affordable housing on the Site that may target a range of affordable housing types and underserved populations; and
WHEREAS, the City of Half Moon Bay Local Coastal Land Use Plan identifies this property as appropriate for application of the Workforce Housing Overlay land use designation to provide sites suitable for affordable housing; and
WHEREAS, Mercy Housing California (“Developer”) submitted a response to the RFQ prior to the May 23, 2022 deadline and proposed the construction of a 40-unit affordable farmworker housing development project (the “Project”); and WHEREAS, despite extensive outreach to publicize the RFQ to local affordable housing developers, the Developer’s proposal was the only one submitted in response to the RFQ; and WHEREAS, the Project submitted by the Developer proposes a partnership with Ayudando Latinos A Soñar (ALAS), a nonprofit organization with deep ties to the farmworker community and experience in serving the social, educational, and cultural needs of Latino communities in coastal areas of Northern California, to include a Farmworker Resource Center on the ground floor that ALAS will operate; and
WHEREAS, the Developer is an experienced local nonprofit affordable housing developer with prior experience developing affordable housing in the City; and WHEREAS, the Developer’s proposal addresses the critical need for housing for local farmworkers and also meets the City’s priorities for housing that is affordable to Acutely Low-, Very Low- and Extremely-Low Income households; and
53 WHEREAS, pursuant to Government Code Sections 54220, 54221( f)(1)(A) and 37364 the City Council has taken all necessary action to ensure compliance with the Surplus Land Act and approved the required declaration of Exempt Surplus Land for the Site on October 4, 2022; and WHEREAS, the City Council passed a resolution authorizing the City Manager to execute an Exclusive Negotiations Agreement with the Developer on October 4, 2022 and the City subsequently executed said agreement with the Developer on November 3, 2022, which included project milestones such as the execution of a predevelopment loan agreement; and WHEREAS, Developer has formed a wholly-owned affiliate, Mercy Housing California 110, L.P, a California limited partnership (“Borrower”), an action typical in cases where developers plan to seek low-income tax credits to help finance an affordable housing project, to carry out the development work and secure Project financing; and WHEREAS, Mercy Housing California 110, LLC., a California limited liability company, is the general partner of Borrower, and Mercy Housing Calwest, another affiliate of Mercy Housing California, is Mercy Housing California 110,LLC’s sole member/manager; and WHEREAS, the City wishes to execute a predevelopment loan agreement with the Borrower (see Exhibit “A”, attached), in order to financially assist necessary predevelopment activities for the Project with funds from the Affordable Housing Fund; and WHEREAS, the Site will not be transferred to Borrower (the “Site Disposition”) until a Disposition and Development Lease Agreement and long-term ground lease is executed between City and Borrower, which Site Disposition is expected to occur shortly before the start of construction of the Project.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay finds the above recitals to be true and correct and are a substantive part of this Resolution; and be it further
RESOLVED, that the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute a predevelopment loan agreement with Mercy Housing California 110, L.P, in an amount not to exceed One Million Dollars from the Affordable Housing Fund, in substantial conformity with the loan terms described in the staff report to support predevelopment activities for an affordable housing project on City-owned property located at 555 Kelly Avenue and 535 Kelly Avenue.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of February, 2023, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:
54 NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Jessica Blair, City Clerk Deborah Penrose, Mayor
55 PREDEVELOPMENT
LOAN

MILESTONE SCHEDULE
No. Task1 No. of Days After
Effective Date
1 (ENA): Submit preliminary
Community Outreach and
Engagement Plan
(Prior to execution of
Predevelopment Loan
Agreement)
2 Submit proposed schedule of
performance, including but not
limited to dates for obtaining
financing commitments, obtaining
entitlements and building permits,
commencing construction,
completing construction, and
leasing the units.

Within 30 days
4 Submit Preliminary Entitlements
Application with site plan and
architectural concept drawings
identifying the proposed location,
building envelopes, general
configuration, elevations of the
building(s), design characteristics,
uses of the building(s) and site, and
parking and traffic circulation for
project.

Within 30 days
5 Submit Preliminary Financing
Narrative, including a narrative for
any operating subsidies such as
Section 8 vouchers, etc.

Within 120 days
6 (ENA): Submit Preliminary
Conceptual Design Plans and
Programming for tenant and unit
mix
Within 120 days
7 (ENA): Submit preliminary plans for
the use of Community Resource
Center by ALAS and include an
outline of details such as size,
features, and programming.

Within 120 days
8 Submit fully completed Entitlements
Application
Within 140 days
9 (ENA): Submit Preliminary Services
Plan and Budget
Within 180 days
10 Complete Due Diligence Activities,
including but not limited to planning,
soils report, hazardous materials
Within 210 days
1 Items denoted as “(ENA)” milestones are copied from Exclusive Negotiations Agreement (ENA) Exhibit B - Developer’s Schedule of Performance, executed on November 3, 2022 between the City of Half Moon Bay and Mercy Housing. The effective dates for all milestones referenced in this Exhibit “C” supersede the previous Milestone Schedule of the ENA. 56 report, and title adequacy
11 Complete Physical Adequacy
Determination, considering
geotechnical and soils conditions,
the presence or absence of toxic or
other hazardous material, the
massing of proposed project
improvements and proposed
parking, and other environmental
and regulatory factors
Within 210 days
12 (ENA): Submit Preliminary Title
Report
Within 210 days
13 Obtain an appraisal of the Property Within 210 days
14 Consult with utility companies
serving the Property and the
appropriate entity providing water
service servicing the Property to
determine existing utility and water
facilitates require expansion,
relocation or undergrounding in
connection with the proposed
development on of the Property
Within 270 days
15 Execute a Disposition and
Development Agreement
Within 365 days
57 PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
Total Project Cost County of San Mateo City of Half Moon Bay

ACQUISITION
Total Land Cost or Value
Total Building Cost or Value -

TOTAL ACQUISITION -

CONSTRUCTION / REHABILITATION
Off-Site Improvements
Demolition
Site Work/Landscape/Surface parking
Structures
Tenant Improvements
Garages/Structured Parking
Contractor Profit
Contractor Overhead
Design/Escaltion Contingency

TOTAL NEW CONSTRUCTION -
ARCHITECTURAL FEES 1,014,296 1,014,296 -
TOTAL SURVEY and ENGINEERING 60,000 60,000 -

ENVIRONMENTAL MITIGATION
CONST. INTEREST & FEES
Const. Loan Interest
Bond Issuance
Origination Fee
Taxes During Construction
Performance Bond Premium
Lender Inspections
Title and Recording
Builders Risk Insurance
Contractor Insurance
TOTAL CONST. INTEREST & FEES -

PERMANENT FINANCING
Loan Origination Fee
Title and Recording
Other

TOTAL PERMANENT FINANCING -

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees

TOTAL OTHER FINANCING -

PREDEVELOPMENT COSTS
58 LEGAL FEES
Constr. Related (includes lender legal) 60,000 60,000 0 Perm. Related (includes lender legal)
TOTAL LEGAL FEES 60,000 60,000 -

RESERVES
Capitalized Operating
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement

TOTAL RESERVES -

CONTINGENCIES
Construction Contingency
Soft Cost Contingency 227,273 - 227,273
TOTAL CONTINGENCIES 227,273 - 227,273
PERMITS & GOV. FEES
school impact fee
other impact fees 510,040 510,040
building permit, plan check, other fees 428,391 165,704 262,687 Capital Fees (utility fees & hook-up charges) -
TOTAL PERMITS & FEES 938,431 165,704 772,727

THIRD PARTY REPORTS
Environmental Reports 50,000 50,000 -
Appraisal 25,000 25,000 -
Market Study 10,000 10,000 -
Title/Escrow/Closing 10,000 10,000 -
TOTAL THIRD PARTY REPORTS 95,000 95,000 -

OTHER OWNER COSTS
Financial Consultant 25,000 25000 -
Cost Cert/Accounting
Construction Mang./Oversight/Testing 80,000 80,000 -
TOTAL OTHER OWNER COSTS 105,000 105,000 -

MANAGEMENT COSTS
Marketing/Leasing
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up)

TOTAL MANAGEMENT COSTS -
SUBTOTAL 2,500,000 1,500,000 1,000,000

DEVELOPER COSTS
Developer Fee

TOTAL DEVELOPER COSTS -

TOTAL SYNDICATION COSTS
TOTAL PREDEVELOPMENT COST 2,500,000 1,500,000 1,000,000

PREDEVELOPMENT COSTS
59 SOURCES AND USES
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
CONSTRUCTION SOURCES OF FUNDS Amount Per Unit % of TDC
Bank Construction Loan 26,362,173 659,054 78%
N/A - - 0%
Tax Credit Equity 3,393,374 84,834 10%
AHP - - 0%
Serna - - 0%
San Mateo County 1,500,000 37,500 4%
Half Moon Bay 2,000,000 50,000 6%
Land/Building Donation - - 0%
Expenses Paid at Conversion to Perm 501,906 12,548 1%
TOTAL CONSTRUCTION SOURCES 33,757,453 843,936 100%
PERMANENT SOURCES OF FUNDS Amount Per Unit % of TDC
Conventional Amortizing Loan 1,576,613 39,415 5%
Section 8 Backed Mortgage - - 0%
Tax Credit Equity 22,622,494 565,562 67%
AHP - 0%
Serna 4,558,346 113,959 14%
San Mateo County 1,500,000 37,500 4%
San Mateo County ARPA 1,500,000 37,500 4%
Half Moon Bay 2,000,000 50,000 6%
Land/Building Donation 0 0%
GP Contributions
Deferred Dev. Fee - 0%
GP Equity - - 0%
TOTAL PERMANENT SOURCES $ 33,757,453 $ 843,936 100%

USES OF FUNDS
Acquisition - - 0.0%
Hard Costs 21,726,186 543,155 64.4%
Architectural 1,086,309 27,158 3.2%
Engineering 150,000 3,750 0.4%
Constr. Int and Fees 2,508,330 62,708 7.4%
Permanent Financing 60,766 1,519 0.2%
Legal 60,000 1,500 0.2%
Reserves 771,072 19,277 2.3%
Contingencies 2,789,671 69,742 8.3%
Other Costs 2,305,119 57,628 6.8%
Developer Costs 2,200,000 55,000 6.5%
Syndication 100,000 2,500 0.3%
TOTAL USES 33,757,453 843,936 100.0%
SURPLUS/GAP $ (0) $ (0)

ATTACHMENT C
60 UNIT MIX
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
MAX RENT (Gross per month; assume 1.5 persons/bdrm)
LIHTC Income Level 30% 40% 50% 60% 80% 90% 110% 120% 130% Market AMI AMI AMI AMI AMI AMI AMI AMI AMI Rents

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

AMI AMI AMI AMI AMI AMI AMI AMI AMI
Studio/Efficiency 978 1,304 1,631 1,957 2,609 2,935 3,588 3,914 4,240 1 Bdrm 1,048 1,398 1,748 2,097 2,796 3,146 3,845 4,195 4,544 2 Bdrm 1,258 1,677 2,097 2,516 3,355 3,774 4,613 5,032 5,452 3 Bdrm 1,453 1,938 2,423 2,907 3,876 4,361 5,330 5,815 6,299 4 Bdrm 2,521 3,362 4,203 5,043 6,724 7,565 9,246 10,087 10,927 5 Bdrm 1,789 2,386 2,983 3,579 4,772 5,369 6,562 7,159 7,755 APARTMENT MIX Sq. Ft. 30% 40% 50% 60% 80% 90% 110% 120% 130% Market Rate # of Apts Per Apt AMI AMI AMI AMI AMI AMI AMI AMI AMI Unit Type Distribution Apportionment (hide) units (hide) SRO/Efficiency 31 386 31 0 0 0 0 0 0 0 0 0 77.5% 78% 31 1 Bdrm 8 641 8 0 0 0 0 0 0 0 0 0 20.0% 22% 8
2 Bdrm 0 850 0 0 0 0 0 0 0 0 0 0 0.0% 0% 0
3 Bdrm 0 1100 0 0 0 0 0 0 0 0 0 0 0.0% 0% 0
4 Bdrm 0 0 0 0 0 0 0 0 0 0 0 0.0% 0% 0
5 Bdrm 0 0 0 0 0 0 0 0 0 0 0 0.0% 0
Manager Unit 1 641 2.5% 1
TOTAL 40 39 0 0 0 0 0 0 0 0 0 100.0% 40
% of units 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Avg LIHTC Affordability=30% N/A Passes Affordability Test
Target Apportionment (hide) 99% 0% 1% 0% 0% 0% 0% 100%
target units (hide) 40 0 0 -1 0 0 0 0 0 0

RENT SCHEDULE SPECIAL NEEDS UNITS / RENT SUBSIDY
Sq. Ft. Sq. Ft. Gross Util Effective Total Percent of Units 98% 39 Income Restriction Unit Type # of Apts Per Apt Total Rent Allow Rent Ann'l Rent # of Apts FMR /Contract Rent Utility Allowance Effective Contract Rent Subsidy PUPM Total Annual Subsidy 30% of AMI SRO/Efficiency 31 386 11,966 978 50 928 345,216 31 2,115 50 2,065 1,137 422,964 1 Bdrm 8 641 5,128 1,048 74 974 93,504 8 2,631 74 2,557 1,583 151,968 2 Bdrm - 850 - 1,258 66 1,192 - - 1,663 66 1,597 - -
3 Bdrm - 1,100 - 1,453 86 1,367 - - 2,231 86 2,145 - -
4 Bdrm - - - 2,521 95 2,426 - - 1,500 95 1,405 - -
5 Bdrm - - - 1,789 95 1,694 - - 1,500 95 1,405 - -
Manager Unit 1 641 641 - - Total
TOTAL 40 17,735 $38,702 $2,142 $36,560 $438,720 39 116400 574,932 $1,013,652 UNITS AT < 81% AMI (LIHTC UNITS)
UNITS AT < 81% AMI (LIHTC UNITS)
UNITS AT >81% AMI
UNITS AT >81% AMI

61 DEVELOPMENT COSTS
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS

94.0% 6.0%
unit cost Total Project Cost Residential Non-Residential Non-Basis Eligible Acquisition Constr/Rehab

ACQUISITION
Total Land Cost or Value - - -
Total Building Cost or Value - - - - -

TOTAL ACQUISITION - - - - - -

CONSTRUCTION / REHABILITATION
Off-Site Improvements 50,000 46,993 3,007 3,007 46,993
Demolition - - - -
Site Work/Landscape/Surface parking - - - - -
Structures 17,634,736 16,574,287 1,060,449 1,060,449 16,574,287 Tenant Improvements - - -
Garages/Structured Parking - - - - -
Contractor Profit 4.0% 715,618 672,585 43,033 43,033 672,585 Contractor Overhead 2.6% 465,151 437,180 27,971 27,971 437,180 Design/Escaltion Contingency 15.0% 2,860,681 2,688,657 172,024 172,024 2,688,657 TOTAL NEW CONSTRUCTION 21,726,186 20,419,702 1,306,485 1,306,485 - 20,419,702 ARCHITECTURAL FEES 5.0% 1,086,309 1,020,985 65,324 65,324 1,020,985 TOTAL SURVEY and ENGINEERING 125,000 117,483 7,517 7,517 117,483 ENVIRONMENTAL MITIGATION 25,000 23,497 1,503 1,503 23,497 CONST. INTEREST & FEES
Const. Loan Interest 1,676,415 1,575,605 100,810 616,630 1,059,785 Bond Issuance - - - -
Origination Fee 0.75% 197,716 185,827 11,889 197,716
Taxes During Construction 1.25% - - - - -
Performance Bond Premium 1.00% 217,262 204,197 13,065 13,065 204,197 Lender Inspections 15,000 14,098 902 902 14,098
Title and Recording 30,000 28,196 1,804 1,804 28,196
Builders Risk Insurance 0.50% 116,233 109,244 6,990 6,990 109,244 Contractor Insurance 1.45% 255,704 240,327 15,377 15,377 240,327 TOTAL CONST. INTEREST & FEES 2,508,330 2,357,494 150,836 852,483 - 1,655,847

PERMANENT FINANCING
Loan Origination Fee 1.00% 15,766 14,818 948 15,766
Title and Recording 20,000 18,797 1,203 20,000
Other 25,000 23,497 1,503 25,000
TOTAL PERMANENT FINANCING 60,766 57,112 3,654 60,766 - -

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees 4% 109,689 109,689 109,689
TOTAL OTHER FINANCING 109,689 109,689 - 109,689 - -

LEGAL FEES
Constr. Related (includes lender legal) 35,000 32,895 2,105 2,105 32,895 Perm. Related (includes lender legal) 25,000 23,497 1,503 25,000 TOTAL LEGAL FEES 60,000 56,392 3,608 27,105 - 32,895

RESERVES
Capitalized Operating 3 months 196,140 196,140 196,140
Capitalized Lease Up Reserve - -
Capitalized Section 8 Transition Reserve 574,932 574,932 574,932 Capitalized Commercial Commission/Lease Up Reserve - -
Capitalized Replacement - - -
TOTAL RESERVES 771,072 771,072 - 771,072 - -

CONTINGENCIES
Construction Contingency 10% 2,172,619 2,041,970 130,648 130,648 2,041,970 Soft Cost Contingency 10% 617,052 579,946 37,106 37,106 579,946 TOTAL CONTINGENCIES 2,789,671 2,621,917 167,754 167,754 - 2,621,917 PERMITS & GOV. FEES
school impact fee - - - - -
other impact fees 510,040 479,369 30,671 30,671 479,369 building permit, plan check, other fees 428,391 402,630 25,761 25,761 402,630 Capital Fees (utility fees & hook-up charges) 791,999 744,373 47,626 47,626 744,373 TOTAL PERMITS & FEES 1,730,430 1,626,372 104,058 104,058 - 1,626,372

THIRD PARTY REPORTS
Environmental Reports 50,000
Appraisal 25,000 23,497 1,503 1,503 23,497

COST APPORTIONMENT TAX CREDIT ELIGIBLE

62 DEVELOPMENT COSTS
Market Study 15,000
Title/Escrow/Closing 10,000 9,399 601 10,000
TOTAL THIRD PARTY REPORTS 100,000 32,895 2,105 11,503 - 23,497

OTHER OWNER COSTS
Financial Consultant 30,000 28,196 1,804 1,804 28,196
Cost Cert/Accounting 30,000 28,196 1,804 30,000
Construction Mang./Oversight/Testing 145,000 136,281 8,719 8,719 136,281 TOTAL OTHER OWNER COSTS 205,000 192,673 12,327 40,523 - 164,477

MANAGEMENT COSTS
Marketing/Leasing $1,500 60,000 56,392 3,608 3,608 56,392 Relocation Expenses - -
Site and Interior Furnishings (Mgmt Start -Up) 100,000 93,987 6,013 100,000 TOTAL MANAGEMENT COSTS 160,000 150,379 9,621 103,608 - 56,392 SUBTOTAL 31,457,453 29,557,660 1,834,793 3,629,390 - 27,763,063

DEVELOPER COSTS
Developer Fee 2,200,000 2,067,705 132,295 132,295 $0 $2,067,705 TOTAL DEVELOPER COSTS 2,200,000 2,067,705 132,295 132,295 - 2,067,705 TOTAL SYNDICATION COSTS 100,000 93,987 6,013 100,000
TOTAL PROJECT COST 33,757,453 31,719,352 1,973,102 3,861,685 - 29,830,768 GRAND TOTAL DEVELOPMENT COSTS $33,757,453

63 PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
Total Project Cost County of San Mateo City of Half Moon Bay

ACQUISITION
Total Land Cost or Value
Total Building Cost or Value -

TOTAL ACQUISITION -

CONSTRUCTION / REHABILITATION
Off-Site Improvements
Demolition
Site Work/Landscape/Surface parking
Structures
Tenant Improvements
Garages/Structured Parking
Contractor Profit
Contractor Overhead
Design/Escaltion Contingency

TOTAL NEW CONSTRUCTION -
ARCHITECTURAL FEES 1,014,296 1,014,296 -
TOTAL SURVEY and ENGINEERING 60,000 60,000 -

ENVIRONMENTAL MITIGATION
CONST. INTEREST & FEES
Const. Loan Interest
Bond Issuance
Origination Fee
Taxes During Construction
Performance Bond Premium
Lender Inspections
Title and Recording
Builders Risk Insurance
Contractor Insurance
TOTAL CONST. INTEREST & FEES -

PERMANENT FINANCING
Loan Origination Fee
Title and Recording
Other

TOTAL PERMANENT FINANCING -

OTHER FINANCING RELATED
TCAC App/Alloc/Monitor Fees

TOTAL OTHER FINANCING -

PREDEVELOPMENT COSTS
64 LEGAL FEES
Constr. Related (includes lender legal) 60,000 60,000 0 Perm. Related (includes lender legal)
TOTAL LEGAL FEES 60,000 60,000 -

RESERVES
Capitalized Operating
Capitalized Lease Up Reserve
Capitalized Section 8 Transition Reserve
Capitalized Commercial Commission/Lease Up Reserve
Capitalized Replacement

TOTAL RESERVES -

CONTINGENCIES
Construction Contingency
Soft Cost Contingency 227,273 - 227,273
TOTAL CONTINGENCIES 227,273 - 227,273
PERMITS & GOV. FEES
school impact fee
other impact fees 510,040 510,040
building permit, plan check, other fees 428,391 165,704 262,687 Capital Fees (utility fees & hook-up charges) -
TOTAL PERMITS & FEES 938,431 165,704 772,727

THIRD PARTY REPORTS
Environmental Reports 50,000 50,000 -
Appraisal 25,000 25,000 -
Market Study 10,000 10,000 -
Title/Escrow/Closing 10,000 10,000 -
TOTAL THIRD PARTY REPORTS 95,000 95,000 -

OTHER OWNER COSTS
Financial Consultant 25,000 25000 -
Cost Cert/Accounting
Construction Mang./Oversight/Testing 80,000 80,000 -
TOTAL OTHER OWNER COSTS 105,000 105,000 -

MANAGEMENT COSTS
Marketing/Leasing
Relocation Expenses
Site and Interior Furnishings (Mgmt Start -Up)

TOTAL MANAGEMENT COSTS -
SUBTOTAL 2,500,000 1,500,000 1,000,000

DEVELOPER COSTS
Developer Fee

TOTAL DEVELOPER COSTS -

TOTAL SYNDICATION COSTS
TOTAL PREDEVELOPMENT COST 2,500,000 1,500,000 1,000,000

PREDEVELOPMENT COSTS
65 FINANCING
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
First Mortgage Terms
Rate 6.50%
Amortization 20
Term 20
Minimum DSCR 1.15
Maximum Debt Service 282,115
Maximum Loan Amount $3,153,226
Actual Loan Amount $1,637,389
Section 8 Mortgage Terms
Rate 6.50%
Amortization 15
Term 15
Minimum DSCR 1.15
Maximum Debt Service -
Maximum Loan Amount $0
Actual Loan Amount $0
CONSTRUCTION PERIOD INTEREST CALCULATION Construction Lease-up/Conversion Taxable Tail Lease-up/Conversion Total Development Cost 33,757,453 33,757,453
Conventional construction loan amt 26,362,173 26,362,173 - - LTC 1 -
Months outstanding 18 4 18 4
Average % outstanding 50% 100% 50% 100%
Rate 5.9% 5.9% 5.0% 5.9%
Total Interest Estimate 1,160,595 515,820 0 0
50% Bond Test CDLAC Allocation Test
Tax Exempt Financing - Total Limit 20,534,000
Depreciable Basis + Acquisition $29,830,768 Passes? Yes Ratio 0%
Constr/Rehab

TAX CREDIT EQUITY CALCULATION
Basis 29,830,768
Deduct grant amounts
Eligible Basis 29,830,768
Threshold Basis Limits # of units Basis
Studio 440,028 31 13,640,868
1 Bdrm 507,348 8 4,058,784
2 Bdrm 612,000 0 0
3 Bdrm 783,360 0 0
4 Bdrm 872,712 0 0
5 Bdrm 390,154 0 0
MGR 507,348 1 507,348
Total 40 18,207,000
Threshold Basis Limit Adjustments
Prevailing Wage 20% 3,641,400
Structured Parking 10% 0
Daycare 2% 0
100% special needs 2% 0
Elevator 10% 1,820,700
Type I Construction 15% 0
Type III Construction 10% 0
Energy efficiency/resource conservation/indoor air quality 0% 0 Seismic Upgrades or Environmental Mitigation 0%
Affordability Adjustment (4% projects only) 200% -
Add Impact Fees 479,369
Opportunity Map High or Highest Resource Area 0% -
Adjusted Theshold Basis Limits 24,148,469
Allowable Basis (Lesser of Actual or Adjusted Basis Limits) 24,148,469 Voluntary Reduction 17% 4,215,000
Effective Reduction 4,215,000
Total Requested Unadjusted Eligible Basis 19,933,469
High Cost Area Adjustment (DDA or QCT) 30% 5,980,041
Total Adjusted Eligible Basis 25,913,510
Applicable Fraction 100% 25,913,510
Total Qualified Basis 25,913,510
Credit Reduction 0% 0
Final Basis Amount 25,913,510
LIHTC Credit Rate 9.00% 9.00%
LIHTC Credit 2,332,216
10 year value 23,322,159
Net raise $/ Tax Credit 0.97 0.97
Federal Credit Equity 22,622,494
State Credit 0
State Credit $/credit 0.80
State Credit Equity 0
Total Net Equity to Project 22,622,494 Page 7 of 10
66 CASH FLOW
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
ADDRESS: 555 Kelly
HOUSING TYPE: Senior
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
Inflation
POTENTIAL GROSS INCOME Factor Per Month Per Unit 1 2 3 4 5 6 7 8 9 10 11 Resident Rent 2.5% 36,560 10,968 438,720 449,688 460,930 472,453 484,265 496,371 508,781 521,500 534,538 547,901 561,599 Rent Subsidy 2.5% 47,911 14,373 574,932 589,305 604,038 619,139 634,617 650,483 666,745 683,413 700,499 718,011 735,962 LOSP Tenant Assistance Payments - - - - - - - - - - -
Commercial 1.0% - - - - - - - - - - - - -
Other Income 2.5% 200 60 2,400 2,460 2,522 2,585 2,649 2,715 2,783 2,853 2,924 2,997 3,072 POTENTIAL GROSS INCOME 84,671 25,401 1,016,052 1,041,453 1,067,490 1,094,177 1,121,531 1,149,570 1,178,309 1,207,767 1,237,961 1,268,910 1,300,632

VACANCY LOSS
Resident 5.0% (1,828) (548) (21,936) (22,484) (23,047) (23,623) (24,213) (24,819) (25,439) (26,075) (26,727) (27,395) (28,080) Rent Subsidy 5.0% (2,396) (719) (28,747) (29,465) (30,202) (30,957) (31,731) (32,524) (33,337) (34,171) (35,025) (35,901) (36,798) Commercial 25.0% - - - - - - - - - - - - -
Total Vacancy Loss (4,224) (1,267) (50,683) (51,950) (53,248) (54,580) (55,944) (57,343) (58,776) (60,246) (61,752) (63,296) (64,878) EFFECTIVE GROSS INCOME 80,447 24,134 965,369 989,504 1,014,241 1,039,597 1,065,587 1,092,227 1,119,533 1,147,521 1,176,209 1,205,614 1,235,754 OPERATING EXPENSES 3.5% (49,910) (14,973) (598,920) (619,882) (641,578) (664,033) (687,274) (711,329) (736,226) (761,993) (788,663) (816,266) (844,836)

GROUND LEASE PAYMENTS
NET OPERATING INCOME 30,537 9,161 366,449 369,621 372,663 375,564 378,313 380,898 383,307 385,527 387,546 389,348 390,919

RESERVES
Replacement Reserve (1,667) (500) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) Operating Reserve - -
Total Reserve Deposits (1,667) (500) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) INCOME BEFORE DEBT SERVICE 28,871 8,661 346,449 349,621 352,663 355,564 358,313 360,898 363,307 365,527 367,546 369,348 370,919 DEBT SERVICE 2.09 2.11 2.13 2.15 2.16 2.18 2.19 2.21 2.22 2.23 2.24 First Mortgage (12,208) (3,662) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) HCD/Other Debt Service (1,595) (479) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) Bond Monitoring Fee
Total Debt Service (13,803) (4,141) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) NET CASH FLOW 15,067 4,520 180,809 183,981 187,023 189,924 192,672 195,258 197,667 199,887 201,905 203,707 205,278

USES OF AVAILABLE CASH
Deferred Developer Fee Balance, beginning of year 3.0% - - - - - - - - - - - - - Deferr. Dev. Fee Payments - - - - - - - - - - -
Residual Cash Flow 4,520 180,809 183,981 187,023 189,924 192,672 195,258 197,667 199,887 201,905 203,707 205,278 Investor Asset Mgmt Fee 3.5% (417) (125) (5,000) (5,175) (5,356) (5,544) (5,738) (5,938) (6,146) (6,361) (6,584) (6,814) (7,053) Partnership Mgmt Fee 3.5% (2,083) (625) (25,000) (25,875) (26,781) (27,718) (28,688) (29,692) (30,731) (31,807) (32,920) (34,072) (35,265) Cash Available for Disbursements 3,770 150,809 152,931 154,886 156,662 158,247 159,627 160,789 161,719 162,401 162,820 162,960 Initial Year

67 CASH FLOW
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 575,639 590,030 604,780 619,900 635,397 651,282 667,564 684,253 701,360 718,894 736,866 755,288 774,170 793,524 813,362 833,696 854,539 875,902 897,800 754,361 773,220 792,550 812,364 832,673 853,490 874,827 896,698 919,115 942,093 965,645 989,786 1,014,531 1,039,894 1,065,892 1,092,539 1,119,853 1,147,849 1,176,545 - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - -
3,149 3,228 3,308 3,391 3,476 3,563 3,652 3,743 3,837 3,933 4,031 4,132 4,235 4,341 4,449 4,561 4,675 4,792 4,911 1,333,148 1,366,477 1,400,639 1,435,655 1,471,546 1,508,335 1,546,043 1,584,694 1,624,312 1,664,920 1,706,542 1,749,206 1,792,936 1,837,760 1,883,704 1,930,796 1,979,066 2,028,543 2,079,256 (28,782) (29,501) (30,239) (30,995) (31,770) (32,564) (33,378) (34,213) (35,068) (35,945) (36,843) (37,764) (38,708) (39,676) (40,668) (41,685) (42,727) (43,795) (44,890) (37,718) (38,661) (39,628) (40,618) (41,634) (42,674) (43,741) (44,835) (45,956) (47,105) (48,282) (49,489) (50,727) (51,995) (53,295) (54,627) (55,993) (57,392) (58,827) - - - - - - - - - - - - - - - - - - -
(66,500) (68,162) (69,867) (71,613) (73,404) (75,239) (77,120) (79,048) (81,024) (83,049) (85,126) (87,254) (89,435) (91,671) (93,963) (96,312) (98,720) (101,188) (103,717) 1,266,648 1,298,315 1,330,772 1,364,042 1,398,143 1,433,096 1,468,924 1,505,647 1,543,288 1,581,870 1,621,417 1,661,952 1,703,501 1,746,089 1,789,741 1,834,484 1,880,347 1,927,355 1,975,539 (874,405) (905,009) (936,685) (969,469) (1,003,400) (1,038,519) (1,074,867) (1,112,487) (1,151,424) (1,191,724) (1,233,435) (1,276,605) (1,321,286) (1,367,531) (1,415,395) (1,464,933) (1,516,206) (1,569,273) (1,624,198) 392,243 393,305 394,088 394,573 394,743 394,577 394,057 393,159 391,863 390,146 387,982 385,347 382,215 378,558 374,346 369,551 364,140 358,082 351,341 (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) 372,243 373,305 374,088 374,573 374,743 374,577 374,057 373,159 371,863 370,146 367,982 365,347 362,215 358,558 354,346 349,551 344,140 338,082 331,341

2.25 2.25 2.26 2.26 2.26 2.26 2.26 2.25 2.25 19.33 19.22 19.08 18.92 18.73 18.51 18.26 17.98 17.66 17.31 (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) (146,495) - - - - - - - - - - (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (165,640) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) (19,145) 206,603 207,665 208,448 208,933 209,103 208,937 208,416 207,519 206,223 351,001 348,837 346,202 343,070 339,413 335,201 330,406 324,995 318,937 312,196 - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - -
206,603 207,665 208,448 208,933 209,103 208,937 208,416 207,519 206,223 351,001 348,837 346,202 343,070 339,413 335,201 330,406 324,995 318,937 312,196 (7,300) (7,555) (7,820) (8,093) (8,377) (8,670) (8,973) (9,287) (9,613) (9,949) (10,297) (10,658) (11,031) (11,417) (11,816) (12,230) (12,658) (13,101) (13,559) (36,499) (37,777) (39,099) (40,467) (41,884) (43,350) (44,867) (46,437) (48,063) (49,745) (51,486) (53,288) (55,153) (57,083) (59,081) (61,149) (63,289) (65,504) (67,797) 162,804 162,333 161,529 160,372 158,842 156,918 154,576 151,794 148,548 291,307 287,054 282,257 276,887 270,913 264,304 257,027 249,048 240,332 230,840

68 OPERATING BUDGET
PROJECT NAME: 555 Kelly
FINANCE TYPE: 9%/Serna
HOUSING TYPE: Senior
ADDRESS: 555 Kelly
COUNTY: San Mateo
SPONSOR: Mercy Housing California/ALAS
Units 40

PAYROLL/PAYROLL TAXES
Admin Payroll 72,800 1,820 1 FTE Property Manager
Operations and Maintenance Payroll 64,480 1,612 1 FTE Maintenance Manager Other Personnel Expenses 2,400 60
Taxes and Benefits 56,048 1,401
TOTAL PAYROLL EXPENSES 195,728 4,893
ADMINISTRATIVE EXPENSE Yearly Expense PUPA Notes
Administrative Expenses 24,000 600
Advertising 1,200 30
Audit Fees 8,000 200
Bookkeeping and Accounting Fee 6,000 150
TOTAL ADMINISTRATIVE EXPENSE 39,200 630

UTILITIES EXPENSES
Electricity 4,560 114
Water 32,320 808
Gas 10,800 270
Sewer 31,080 777
TOTAL UTILITIES EXPENSES 78,760 1,969

OPERATING AND MAINTENANCE
Operating Contracts 15,000 375
Operating Supplies 15,000 280
Garbage/Trash Removal 20,000
HVAC Repairs &Contracts
Maintenance Contracts 19,000 475
Maintenance Supplies 15,000 375
TOTAL OPERATING EXPENSES 84,000 1,160
REAL ESTATE TAXES 25,000 625
INSURANCE 40,000 1,000
RESIDENT SERVICES 90,000 2,250
MANAGEMENT FEE 33,600 840
TOTAL OPERATING BUDGET 586,288 14,657

69

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 21, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jessica Blair, Communications Director / City Clerk Catherine Engberg, City Attorney
TITLE: REVIEW OF HALF MOON BAY MUNICIPAL CODE CHAPTER 1.30 –

CONTRIBUTIONS AND LOANS TO CITY CANDIDATE CAMPAIGNS
______________________________________________________________________________ RECOMMENDATION:

Review local ordinance provisions and receive update on SB 1439 (Glazer) and provide direction to staff on whether the City’s campaign contribution limits should be amended.

FISCAL IMPACT:

None associated with this action.

STRATEGIC ELEMENT:

This recommendation supports the Inclusive Governance Element of the Strategic Plan.

BACKGROUND:

In 2005, the City Council adopted Ordinance No. 02-05, adding Chapter 1.30, Contributions and Loans to City Candidate Campaigns, to the Half Moon Bay Municipal Code. This chapter established limits on the amount of contributions that may be made to City Council candidate campaigns to $250 by an individual and $500 by an organization, as well as limiting the amount a candidate may loan to their campaign to an outstanding balance of $5,000 at any given time.

Section 1.30.080 of the Half Moon Bay Municipal Code requires that the City Council conduct a post-election review of the requirements of this chapter no later than three months following the certification of results of an election at which a city councilmember is elected. The purpose of this review is to allow the City Council to consider the ongoing appropriateness of the provisions of this chapter, including, but not limited to the amount of contribution loan limits established in Section 1.30.030.

In 2007, Chapter 1.30 was reviewed by the City Council and amended to allow for $1,000 maximum contributions by an individual or corporation, while clarifying that the contributions 70

of an organization whose contributions are directed and controlled by any individual shall be aggregated with contributions made by the individual.

The City Council subsequently amended the ordinance to reinstate the original contribution limits of $250 by an individual and $500 by an organization. The most recent amendment also limited the outstanding balance a candidate may loan to their campaign to $1,500. These are the current limits under the local ordinance.

The City Council certified the results of the November 8, 2022 election on December 20, 2022.

On the state level, on January 1, 2023, SB 1439 (Glazer) went into effect. SB 1439 expands the “Pay to Play” restrictions in the Levine Act to apply to elected council members and makes them subject to certain conflict of interest rules. Because the topics are related, staff is bringing forward information on SB 1439 in conjunction with Council’s post-election review of Chapter

1.30. DISCUSSION:

Staff has updated its survey of other cities with local campaign ordinances. Out of the 20 cities and towns in San Mateo County, four others have campaign contribution limits – San Mateo ($500 individual / $1,000 organization), Belmont ($500 individual and organization), Redwood City ($1000 individual and organization) and Burlingame ($500 individual / $1,000 organization).

For limits on personal loans by the candidate to their campaign, only Burlingame has such limitations with a $12,000 cap.

SB 1439 extends to the City Council the campaign contribution rules of the Levine Act, which previously applied only to appointed officials (such as Commissioners and Council appointees to joint powers agencies). Elected officials are now required to recuse from any proceeding involving a license, permit, or other entitlement if the official has received a campaign contribution of $250 or more from any “party” to or “participant” in a proceeding within the previous 12 months. SB 1439 also extended the “blackout period” from 3 months to 12 months. In other words, the Levine Act now prohibits campaign contributions of $250 or more from “parties” or “participants” in the proceeding, for 12 months following such proceedings.

The FPPC has recently issued an opinion concluding that the law applies only prospectively. See Attachment 2, FPPC Opinion O-22-002. As a result, it only applies to contributions made after January 1, 2023.

A “party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. Gov. Code 84308(a)(1).

A “participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in FPPC Regulations. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the 71

officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. Gov. Code 84308(a)(2).

The City’s local campaign contribution ordinance currently limits individual donations to a maximum of $250. So long as this limit remains in place, the SB 1439 would generally not be implicated.

On the other hand, the City’s ordinance allows organizations to contribute up to $500. The Levine Act (including as modified by SB 1439) is focused on restricting contributions by parties and participants with a financial interest in the decision. Organizations do not necessarily have a financial interest in any particular decision.1 As a result, the City’s $500 limit on contributions by organizations operates as a separate restriction on campaign contributions.

CONCLUSION:

Section 1.30.080 requires that the City Council review campaign contribution limits after each election. Staff requests that the City Council review Chapter 1.30 and direct staff to either amend, repeal, or leave the contribution limits as they are.

ATTACHMENTS:

1. Chapter 1.30 of the Half Moon Bay Municipal Code

2. FPPC Opinion No. O-22-002
1 For example, the FPPC has ruled that labor unions are not restricted by the Levine Act since they are not parties, and they only meet the first part of the participant test (lobbying), but not the second part (financial interest). (See Sablan Advice Letter, FPPC File No. A- 21-020.) 72 Page | 1

BEFORE THE FAIR POLITICAL PRACTICES COMMISSION
In the Matter of: )
) No. O-22-002
Opinion requested by ) December 22, 2022
League of California Cities, )
On Behalf of El Cajon City )
Councilmember Gary P. Kendrick )
___________________________________ )
BY THE COMMISSION: The League of California Cities (“CalCities”), on behalf of El Cajon City Councilmember Gary P. Kendrick, has requested an opinion of the Fair Political Practices Commission (“Commission”) on the following:

QUESTIONS
Under Government Code section 843081, as amended by Senate Bill 1439 (2022), may a local elected official be prohibited from taking part in a proceeding involving a license, permit, or other entitlement for use based on contributions received before SB1439 took effect (January 1, 2023)? May a local elected official be prohibited from receiving a contribution based on the official’s participation in a license, permit, or other entitlement for use proceeding that took place before SB 1439 took effect?

CONCLUSION
No. Based on the statutory language and legislative history, there is no indication the Legislature intended SB 1439’s “lookback” periods to apply to contributions received and proceedings participated in prior to Section 84308’s amended provisions taking effect. Absent express language otherwise, we find that a local elected official is not prohibited from taking part in a proceeding involving a license, permit, or other entitlement for use based on contributions received before January 1, 2023. Similarly, a local elected official is not prohibited from receiving a contribution based on the official’s participation in a license, permit, or other entitlement for use proceeding so long as the official’s participation occurred before January 1, 2023.

BACKGROUND
Currently, Section 84308 of the Political Reform Act prohibits an officer of an agency from accepting, soliciting, or directing a contribution of more than $250 from any party, participant, or agent thereof while a proceeding involving a license, permit, or other entitlement

1 All statutory references are to the California Government Code unless otherwise indicated. 73 Page | 2
for use is pending before the agency and for three months following the date a final decision is rendered in the proceeding if the official knows or has reason to know that the participant has a financial interest, as further specified in the Act. An official is also prohibited from taking part in such a decision if they have received a contribution exceeding $250 within the preceding 12 months. Additionally, the term “agency,” as used in Section 84308, does not currently include local governmental agencies whose members are directly elected by voters.

On January 1, 2023, SB 1439 goes into effect, amending Section 84308 in two key ways.

First, the bill extends the period in which such a contribution is prohibited after a final decision is rendered from three months to 12 months. Second, the application of Section 84308 will extend to local government agencies whose members are directly elected by voters (e.g., city council members).

After SB 1439 passed, the FPPC received several requests for clarification on how Section 84308, as amended, will apply on January 1, 2023. CalCities formalized some of those questions with a request for an FPPC Opinion on behalf of El Cajon City Councilmember Gary P. Kendrick. At the November 2022 Commission meeting, after discussing the statutory language, legislative history, and case law supporting different interpretations of Section 84308, the Commission directed Legal Division staff to prepare an Opinion concluding that SB 1439’s amendments to Section 84308 do not apply to contributions received or proceedings participated in by local elected officials prior to January 1, 2023, when SB 1439’s amendments take effect.

ANALYSIS
Under Section 83111, “[t]he Commission has primary responsibility for the impartial, effective administration and implementation” of the Act. When the Commission interprets a statute, it follows the same canons of statutory construction employed by the courts. Britton et al. v. Dallas Airmotive, Inc. et al. (2007) 153 Cal.App.4th 127, 131-132 explains:

Our primary objective in interpreting a statute is to determine and give effect to the underlying legislative intent. We begin by examining the statutory language, giving the words their usual, ordinary meanings and giving each word and phrase significance.

The meaning of a statute may not be determined from a single word or sentence; the words must be construed in context, and provisions ... relating to the same subject matter must be harmonized to the extent possible. An interpretation that renders related provisions nugatory must be avoided; each sentence must be read not in isolation but in the light of the statutory scheme; and if a statute is amenable to two alternative interpretations, the one that leads to the more reasonable result will be followed. If the terms of the statute 74 Page | 3
are unambiguous, we presume the lawmakers meant what they said, and the plain meaning of the language governs.
(Internal citations and quotation marks omitted.)
In examining the amended statutory language, no provision expressly states the statute is intended to apply to local elected officials based on conduct that occurred prior to the amendments taking effect. Although the statute includes language pertaining to the 12-month period prior to and following a license, permit, or other entitlement for use proceeding, the context of this language must be considered in determining the Legislature’s intent. For the reasons discussed below, we interpret Section 84308’s amended provisions to apply to contributions received and proceedings participated in by local elected officials after, and not before, January 1, 2023.

A. The Legislature Was Presumably Aware the Commission Had Previously Interpreted Section 84308 to Apply Only to the Period After the Statute’s Effective Date.

In 1982, the Legislature passed the Levine Act, adding Section 84308 to the Act. Though Section 84308 applied to a narrower range of public officials, it similarly prohibited an official from taking part in certain proceedings where the official had received a contribution exceeding $250 from a party or participant within the 12 months prior to the proceeding. The statute took effect on January 1, 1983. The Commission’s historical files indicate that, just as in the wake of SB 1439, the Commission received several questions regarding how Section 84308 would apply.

Subsequently, the Commission adopted Regulation 18438, which read, “[t]he prohibitions and requirements of Government Code Section 84308 do not apply to contributions made or received prior to January 1, 1983.”
For purposes of interpreting amended Section 84308, the Legislature was presumably aware of the Commission’s prior interpretation. Accordingly, if the Legislature had intended Section 84308’s amended provisions to apply differently, it presumably would have included express statutory language to that effect. (See Napa Valley Educators’ Assn. v. Napa Valley Unified School Dist. (1987) 194 Cal.App.3d 243, 252 (“The Legislature is presumed to be aware of long-standing administrative practice . . . . If the Legislature . . . makes no substantial modifications to the act, there is a strong indication that the administrative practice was consistent with the legislative intent.”); see also Moore v. California State Bd. of Accountancy (1992) 2 Cal.4th 999, 1017-1018 (“[A] presumption that the Legislature is aware of an administrative construction of a statute should be applied if the agency’s interpretation of the statutory provisions is of such longstanding duration that the Legislature may be presumed to know of it.”).)
75 Page | 4
B. Applying Amended Section 84308 Based on Contributions Received in 2022 Would Not Give Some Officials the Opportunity to Return the Contributions in Order to Participate in a Proceeding as Contemplated by the Statute.

As provided currently in Section 84308(c) and incorporated in amended Section 84308(d)(1):

If an officer receives a contribution which would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, the officer shall be permitted to participate in the proceeding.

The above language provides a public official a period in which a contribution may be returned so the official is not inherently prohibited from taking part in a proceeding based on a contribution they received. Because an official who accepts a contribution may not anticipate it will disqualify them from a subsequent proceeding, the statute expressly provides the opportunity to return the contribution. However, this return period is limited to 30 days after having knowledge of the contribution and proceeding.

If applied to contributions received and proceedings initiated in 2022, SB 1439 would create a scenario in which some officials may not have the opportunity to return a contribution in order to take part in a proceeding. Specifically, a local elected official would be unable to return a contribution received in 2022 and take part in the subsequent proceeding if more than 30 days have passed since acquiring knowledge of the receipt of the contribution and the initiation of the proceeding. Given the statute expressly provides officials with an opportunity to return a contribution, it appears the Legislature was not attempting to supplant this provision in adopting amended Section 84308. (See Jackpot Harvesting Co., Inc. v. Superior Court (2018) 26 Cal.App.5th 125, 141 (stating where statutory language is unclear, courts “select the construction that comports most closely with the apparent intent of the Legislature, with a view to promoting rather than defeating the general purpose of the statute, and avoid an interpretation that would lead to absurd consequences”).)
C. Applying Amended Section 85308 Based on Contributions Received in 2022 May Complicate Governance by Disqualifying Officials from Decisions Without the Opportunity to Return the Contributions.

Applying Section 84308 to local elected officials based on contributions received in 2022 may significantly complicate officials’ ability to effectively govern their respective jurisdictions.

For example, without having been able to reasonably anticipate that SB 1439 would potentially apply, some officials would not have had the opportunity to plan accordingly. For instance, an official may have already spent a contribution without knowledge that the contribution may lead 76 Page | 5
to disqualification from a subsequent decision. Consequently, the official may be unable to return the contribution in order to participate in a proceeding.

Applying amended Section 84308 to contributions that occurred in 2022 may also impact agencies’ ability to make governmental decisions throughout the 2023 calendar year due to the potential that numerous officials would be disqualified from taking part in a proceeding because the officials did not have the opportunity to return contributions from a party to, or participant in, the proceeding. Further, officials would be required to review whether each participant in each new or ongoing proceeding contributed to the official in the prior 12 months or revealed facts in written or oral support or opposition before the official’s agency that made the participant’s financial interest apparent (see Regulation 18438.7(a)(2))—a task that may prove impractical, particularly with respect to proceedings occurring shortly after January 1, 2023. By applying Section 84308’s amended provisions only to contributions and participation occurring after January 1, 2023, it will better enable officials to establish systems for tracking and flagging contributions for potential disqualification under Section 84308 going forward.

CONCLUSION
Based on the above considerations, there is no clear indication that the Legislature intended SB 1439’s “lookback” periods to apply to contributions received and proceedings participated in prior to Section 84308’s amended provisions taking effect. In amending Section 84308, the Legislature was presumably aware the Commission had previously interpreted Section 84308’s provisions to apply after the effective date of the statute. Additionally, applying Section 84308’s amended provisions to contributions received and participation by local elected officials that occurred in 2022 would create a gap in the statutory framework, leaving some officials unable to return contributions in order to participate in proceedings as the Legislature intended. Finally, such an interpretation would also create logistical issues based on officials’ inability to have anticipated the statutory amendments, potentially delaying or otherwise complicating important governmental decisions. With these factors in mind, and absent express language otherwise, we find that a local elected official is not prohibited from taking part in a proceeding involving a license, permit, or other entitlement for use based on contributions received before January 1, 2023. Similarly, a local elected official is not prohibited from receiving a contribution based on the official’s participation in a license, permit, or other entitlement for use proceeding so long as the official’s participation occurred before January 1, 2023.

WE CONCUR:
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81

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: February 7, 2022
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Lisa Lopez Rossi, Interim Assistant City Manager
Kenneth Stiles, Finance Manager
TITLE: FINANCIAL AND TREASURER’S REPORT FOR THE QUARTER ENDED ON DECEMBER 31, 2022
______________________________________________________________________________ RECOMMENDATION:

Accept the Financial Report and the Treasurer’s Report for the quarter ended on December 31, 2022.

FISCAL IMPACT:

There is no fiscal impact with the acceptance of this report.

STRATEGIC ELEMENT:

This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.

BACKGROUND:

One of the City Council strategic priorities includes planning for and implementing long-term financial stability. A key component of this goal includes preparing a quarterly financial report that would provide readers with an executive summary of the City’s current financial conditions as it relates to the annual operating budget to ensure accountability and transparency in managing public funds.

Additionally, in accordance with Government Code Section 53600 et seq., the City’s Treasurer is to provide the City Council with a report on investments on a quarterly basis. As shown in the Treasurer’s Report (Attachment 2), the City’s investments are in external investment pools listed at cost, as well as its fair value, not amortized cost, in compliance with Governmental Accounting Standard. The City’s investment practices strictly follow Government Code Section 53600 et seq., the City’s investment policy, and a prudent person’s rule. 82

DISCUSSION:

As of December 30, 2022, the General Fund revenues totaled $10.4 million or 49% of the approved budget. General Fund expenditures total $7.6 million or 33% of budget. As stated in the attached report, revenues and expenditures are performing as anticipated.

The City’s cash and investment portfolio at fair market value, as of December 31, 2022, is $50.5 million of which $38.9 million is placed with the San Mateo County Treasurer’s Investment Pool and $7.6 million is placed with the State Controller’s Local Agency Investment Fund (LAIF), and $4 million in operating accounts with Wells Fargo Bank. The average weighted yield for the City’s cash and investments are 1.66 % for the quarter.

With the information available, staff holds no great concern for financial stability for the current fiscal year; however, will continue to monitor any changes that may impact the City.

ATTACHMENT:

1. Financial Report for the quarter ended on December 31, 2022.

2. Treasurer’s Report for the quarter ended on December 31, 2022. 83 CITY OF HALF MOON BAY
Quarterly Financial Report
December 31, 2022 – 50% of Year Complete
Prepared By:

Administrative Services Department
84 Funds Actual % of Budget Actual % of Budget
General Fund 10,428,502                49% 7,632,458                  32.5% Special Revenue Funds 869,451                     7% 3,115,745                  17.2% Sewer Operations 2,963,326                  37% 2,988,303                  41.5% Sewer Capital 199,834                     93% 83,056                        2.2% Internal Service Funds 25,585                        2% 762,599                     49.3% Pension Stabilization Fund 1,887                          0% 1,152,095                  100.0% TOTAL FOR ALL FUNDS 14,488,585               33% 15,734,255               28.4% Revenues Expenditures
0% 20% 40% 60% 80% 100%
General Fund
Special Revenue Funds
Sewer Operations
Sewer Capital
Internal Service Funds
Revenue & Expenditure Summary
Revenues to Budget Expenditures to Budget
85 Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Transient Occupancy Tax 8,752,000                                 3,961,966 45% 3,263,623 $            35% Property Taxes 3,436,620                                 1,931,913 56% 1,694,428 $            37% Sales & Use Tax 3,058,600                                 1,130,624 37% 1,036,637 $            32% Franchise Tax 836,800                                       183,169 22% 171,359 $                17% Business License Tax 301,000                                       257,041 85% 257,371 $                82% Charges for Services 1,769,370                                    964,208 54% 1,031,757 $            48% Interest and Investment 88,071                                           48,581 55% 21,949 $                  ‐8% Other Revenues 2,530,381                                 1,950,999 77% 1,865,347 $            71% Transfers in 524,180                   ‐                               0% $                       ‐ 0% TOTAL 21,297,021                           10,428,502 49% 9,342,471               38% 0% 20% 40% 60% 80% 100%
Transient Occupancy Tax
Property Taxes
Sales & Use Tax
Franchise Tax
Business License Tax
Charges for Services
Interest and Investment
General Fund Revenue Summary
Revenues to Budget
86 Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Administrative Services 1,316,046                                591,870 45% 515,897 $                48% City Clerk / Communications 1,058,340                                438,972 41% 354,593 $                45% City Council 232,538                                     63,497 27% 62,172 $                  38% City Managers Office 8,637,739                            3,991,424 46% 3,466,896 $            49% Community Development 1,998,671                                774,810 39% 750,257 $                50% Public Works 3,547,745                            1,433,074 40% 1,319,852 $            45% Debt Service 704,410                                   338,811 48% 636,590 $                51% Non‐Departmental                           ‐ ‐                           ‐ $                        0% Operating Transfers 1,954,936               ‐                           0% $                       ‐ 0% Capital Transfers 4,015,419               ‐                           0% $                       ‐ 0% TOTAL 23,465,844                          7,632,458 32.5% 7,106,258               35% 0% 20% 40% 60% 80% 100%
Administrative Services
City Clerk / Communications
City Council
City Managers Office
Community Development
Public Works
Debt Service
Capital Transfers
General Fund Expenditure Summary
Expenditures to Budget
87 GENERAL FUND ANALYSIS:

The General Fund is the primary operating fund of the City and is used to account for most operating activities. Table 1 below provides year‐to‐date through the second quarter comparable data for the current fiscal year and the prior year.

Through the second quarter, the city received $10.4 million of revenues for the fiscal year.

Revenues have increased from the prior year. While last year revenues were 38%, current fiscal year revenues are 49% of budget.

Expenditures through the second quarter total $7.6 million. Expenditures are tracking as anticipated at 33% of the budget.

Revised
Budget
Actuals as of
12/31/2022
% of
Budget
Final
Actuals
Actuals as of
12/31/2021
% of
Actuals
Revenues
Transient Occupancy Tax 8,752,000                   3,961,966 45% 9,442,518                      3,263,623 35% Property Taxes 3,436,620                   1,931,913 56% 4,598,752                      1,694,428 37% Sales & Use Tax 3,058,600                   1,130,624 37% 3,208,517                      1,036,637 32% Franchise Tax 836,800                         183,169 22% 1,028,719                         171,359 17% Business License Tax 301,000                         257,041 85% 312,608                            257,371 82% Charges for Services 1,769,370                      964,208 54% 2,160,017                      1,031,757 48% Interest and Investment 88,071                             48,581 55% (284,664)                              ‐ 21,949 8% Other Revenues 2,530,381                   1,950,999 77% 2,645,612                      1,865,347 71% Transfers in 524,180             ‐                      0% 1,422,140              ‐                     0% Total Revenues 21,297,021               10,428,502 49% 24,534,220                    9,342,471 38% Expenditures
Administrative Services 1,316,046                      591,870 45% 1,077,314                         515,897 48% City Clerk / Communications 1,058,340                      438,972 41% 795,855                            354,593 45% City Council 232,538                           63,497 27% 162,955                              62,172 38% City Managers Office 8,637,739                   3,991,424 46% 7,065,465                      3,466,896 49% Community Development 1,998,671                      774,810 39% 1,496,081                         750,257 50% Public Works 3,547,745                   1,433,074 40% 2,912,840                      1,319,852 45% Debt Service 704,410                         338,811 48% 1,260,001                         636,590 51% Non Departmental                     ‐ ‐                      ‐                         ‐ Operating Transfers 1,954,936          ‐                      0% 1,871,542              ‐                     0% Capital Transfers 4,015,419          ‐                      0% 3,447,577              ‐                     0% Total Expenditures 23,465,844                 7,632,458 33% 20,089,630                    7,106,258 35% FY 2022‐23 FY 2021‐22
Table 1: Second Quarter Budget to Actual Comparison
88 Revenues
Table 2 below shows a year‐to‐date summary of actual revenues through the second quarter for fiscal years 2022‐23 and 2021‐22.
 Transient Occupancy Tax: The City has received $3.9 million through the second quarter.

This is an increase of $698 thousand from the prior year. This revenue stream is at 45% of budget compared to the prior year’s 35%, signaling an overperformance. The City will continue monitoring this revenue stream and adjust as necessary at the Mid‐Year Budget Review.
 Property Taxes: Most property tax funds are received in December and April. $1.9 million in revenues have been received thus far. This is an increase of $237 thousand from the prior year. Property taxes are at 56% of budget as compared to the prior year’s 37%, signaling an overperformance. The City anticipates this revenue stream to continue overperforming the budget and will adjust as necessary.  Sales & Use Taxes: The City received $1.1 million ofsalestaxes. Thisis an increase of $93K from the prior year. This category is tracking slightly better than anticipated.  All other revenues: The City received $1.9 million in other revenues. This category generally includes miscellaneous, non‐material, or one‐time funds. This category is tracking as anticipated.

Revised
Budget
Actuals as of
12/31/2022
% of
Budget
Actuals as of
12/31/2021
% of
Actuals
Revenues
Transient Occupancy Tax 8,752,000                   3,961,966 45% 3,263,623          35% Property Taxes 3,436,620                   1,931,913 56% 1,694,428          37% Sales & Use Tax 3,058,600                   1,130,624 37% 1,036,637          32% Franchise Tax 836,800                         183,169 22% 171,359             17% Business License Tax 301,000                         257,041 85% 257,371             82% Charges for Services 1,769,370                      964,208 54% 1,031,757          48% Interest and Investment 88,071                             48,581 55% 21,949               ‐8% Other Revenues 2,530,381                   1,950,999 77% 1,865,347          71% Transfers in 524,180             ‐                      0%                    ‐ 0% Total Revenues 21,297,021               10,428,502 49% 9,342,471          38% FY 2022‐23 FY 2021‐22
Table 2: Second Quarter Revenues
89 Budget Adjustments
Table 3 below shows a summary of council actions with potential budgetary effects during the second quarter not reflected in the numbers above.

Conclusion
Table 4 below shows an updated summary of general fund balances for the current fiscal year.

Considering revenues and expenditures are generally performing as anticipated, there is no great concern of fiscal instability for the current fiscal year with the information available. The unassigned funds on June 30, 2023, is estimated to be $3.6 million. These funds may formally become assigned for use during the mid‐year review or the next fiscal year.

Additionally, with the strong fully funded reserves, the City is content regarding the financial stability; however, we will continue to monitor any changes that may impact the City.

Item Major Funding Source Total Fiscal Impact GF Impact No Budgetary Adjustments During the Second Quarter
Total $                         ‐ ‐ $
Table 3: Budget Adjustments
FY2022‐23
Adopted Budget
Beginning Fund Balance 15,585,153
Revenues 21,297,021
Expenditures (23,465,844)
Budget Adjustments                        ‐
Net Change to Fund Balance (2,168,823)
Ending Fund Balance 13,416,330
General Fund Reserve (5,835,127)
Economic Uncertainty (3,890,085)
Unassigned 3,691,118
Table 4: General Fund Balance Summary
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