Half Moon Bay City Council
May 2, 2023

CITY COUNCIL AGENDA

REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, MAY 2, 2023

HYBRID MEETING (SEE NEXT PAGE)

ADCOCK COMMUNITY CENTER
535 KELLY AVENUE
HALF MOON BAY, CA 94019
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.

Comments on Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s 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 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 HYBRID MEETING PARTICIPATION PROTOCOLS
This meeting will be held in-person and via Zoom for public participation. Public comments may be made in-person or remotely via Zoom, and interpretation will be available. All Councilmembers and staff will participate in person. 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/87674804231 or join by phone at 669-900-9128, using Webinar ID 876-7480-4231. If joining by phone, use *9 to raise your hand, *6 to mute and unmute.

ROLL CALL / PLEDGE OF ALLEGIANCE

APPROVAL OF AGENDA

PROCLAMATIONS AND PRESENTATIONS

MENTAL HEALTH AWARENESS MONTH PROCLAMATION

JEWISH AMERICAN HERITAGE MONTH PROCLAMATION

MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

CITY MANAGER UPDATES TO COUNCIL
MAY 8, 2023 AFFORDABLE HOUSING COMMUNITY MEETING ANNOUNCEMENT MAY 9, 2023 JOINT HOUSING ELEMENT MEETING ANNOUNCEMENT

COASTAL TRAIL EROSION UPDATE

PUBLIC FORUM

1. CONSENT CALENDAR

1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES

1.B AMENDED MAP OF CREEKSIDE COURT - FINAL MAP NO. 16-02 Staff Recommendation: Staff recommends that the City Council make a determination that the following findings can be made concerning the modifications (Government Code Section 66472.1) and adopt a resolution for the Amended Tract Map No. 16-02: 1) that the modifications proposed did not impose any additional burden on the present fee owner of the property; 2) that the modifications proposed do not alter any right, title or interest in the real property reflected in the recorded map; 3) that the map as modified conforms to the provisions of Section 66474 of the Government Code; and 4) authorizing the City Engineer and City Attorney to make such revisions that are acceptable under said Resolution and applicable law; and accepting, on behalf of the Public, all dedicated Public Easements (Public Utility Easements and Emergency Vehicle Access Easements) as noted as changes on the Amended Map.

STAFF REPORT
2 RESOLUTION
ATTACHMENT 2
ATTACHMENT 3

1.C DISPLAY OF THE MENTAL HEALTH AWARENESS FLAG FOR THE MONTH OF MAY 2023

AT CITY HALL TO COMMEMORATE MENTAL HEALTH AWARENESS MONTH Staff Recommendation: Adopt a resolution authorizing display of the Mental Health Awareness Flag at City Hall for the month of May 2023.

STAFF REPORT

RESOLUTION

1.D RECEIPT OF LEGISLATIVE POSITION LETTER
Staff Recommendation: Receive and file letter of support for Assembly Bill 1379.

STAFF REPORT
ATTACHMENT 1

1.E 555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT - AMERICAN RESCUE PLAN

ACT (ARPA) GRANT AGREEMENT WITH THE COUNTY OF SAN MATEO Staff Recommendation: Adopt a resolution: 1) authorizing the City Manager to execute a grant agreement between the City and the County of San Mateo, in an amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) in federal American Rescue Plan Act funds received by the County, for predevelopment expenses for an affordable housing development project on City-owned land at 535 and 555 Kelly Avenue; 2) authorizing allocation of these ARPA funds from the City to Mercy Housing California to support Project predevelopment activities; and 3) authorizing the City Manager to execute a grant agreement between the City and the Developer, in an amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000), for the purpose of making these ARPA funds available to support predevelopment activities for the Project.

STAFF REPORT

RESOLUTION
ATTACHMENT 2
3 2. ORDINANCES AND PUBLIC HEARINGS

2.A INTRODUCTION AND FIRST READING OF “FEEDING OF WILDLIFE” ORDINANCE Staff Recommendation: Conduct a Public Hearing and introduce on first reading an ordinance adopting a new Chapter 8.08 entitled “Feeding of Wildlife” to the Half Moon Bay Municipal Code.

STAFF REPORT

ORDINANCE

3. RESOLUTIONS AND STAFF REPORTS

3.A UPDATE ON JOHN L. CARTER PARK IMPROVEMENTS PROJECT (CIP NO. 0611) Staff Recommendation: Receive an update on the John L. Carter Park Improvements Project and provide feedback to staff.

STAFF REPORT

3.B THE SPIRIT OF LIFE BELL SCULPTURE
Staff Recommendation: By resolution, authorize the City Manager to execute a Public Art Agreement between the City of Half Moon Bay and Silvio Modena III., formally accepting the donation of the “The Spirit of Life Bell” sculpture created by Silvio J. Modena Jr.; and affirming the continued temporary placement of the sculpture in the City Hall parking lot until such time as a permanent location is established by a subsequent resolution of the City Council.

STAFF REPORT

RESOLUTION

3.C FINANCIAL AND TREASURER’S REPORT FOR THE QUARTER ENDED ON MARCH 31, 2023
Staff Recommendation: Accept the Financial Report and the Treasurer’s Report for the quarter ended on March 31, 2023.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
4 COMMISSION / COMMITTEE UPDATES

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: May 2, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Public Works Director/City Engineer Jonathan Woo, Assistant Engineer

TITLE: AMENDED MAP OF CREEKSIDE COURT - FINAL MAP NO. 16-02 ______________________________________________________________________________ RECOMMENDATION:

Staff recommends that the City Council make a determination that the following findings can be made concerning the modifications (Government Code Section 66472.1) and adopt a resolution for the Amended Tract Map No. 16-02:
1) That the modifications proposed did not impose any additional burden on the present fee owner of the property; and
2) That the modifications proposed do not alter any right, title or interest in the real property reflected in the recorded map; and
3) That the map as modified conforms to the provisions of Section 66474 of the Government Code; and
4) Authorizing the City Engineer and City Attorney to make such revisions that are acceptable under said Resolution and applicable law; and accepting, on behalf of the Public, all dedicated Public Easements (Public Utility Easements and Emergency Vehicle Access Easements) as noted as changes on the Amended Map.

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, Healthy Communities and Public Safety Elements of the Strategic Plan.

BACKGROUND:

On November 7, 2017 the City of Half Moon Bay, by City Council Resolution No. C-2017-92, conditionally approved the requested Tentative Subdivision Map (the “Tentative Map”), Coastal 6

Development Permit, and Use Permit to divide two parcels totaling 5.5 acres into 12 residential lots with associated improvements, including utilities, an open space conservation easement, an open space area for passive recreation, and an on-site drainage swale at 320 Church Street in the C-D (Commercial Downtown) Residential Zoning District.

On July 20, 2021, Staff presented the Creekside Final Map and Subdivision Improvement Agreement to City Council and ultimately adopted Resolution No. C-2021-63 that:
1) Approves the Final Map, subject to revisions to correct clerical errors and conform with Final Map to said Resolution, and delegates to the City Engineer and City Attorney authority to determine that such revisions are acceptable under said Resolution and applicable law; and
2) Approves the Subdivision Improvement Agreement subject to City’s approval as to form of the required securities and insurance documents; and 3) Accepts on behalf of the City for public use all offered 10’ Trail Easement, Public Service Easements and Emergency Vehicle Access Easement; and
4) Rejects any offer in dedication of Public Utility Easements, which offer may be reconsidered as provided in Government Code section 66477.2; and 5) Authorizes the City Manager, Acting City Surveyor, City Clerk, and City Engineer, as appropriate, to execute and record the Final Map (as revised) and the Subdivision Improvement Agreement and any security instruments with the office of the San Mateo County Recorder subject to City Council concurrent approval of the Affordable Housing Compliance Agreement providing four multi-family affordable housing units.

The Creekside Court Final Map No. 16-02 (Attachment 2) was recorded with the County of San Mateo Recorder’s Office on December 21, 2021.

DISCUSSION:

In April 2022, the former property owner, Gibraltar Capital, Inc., sold the subdivided land, in full, to HMB Coast, LLC. The new owner requested some modifications to the driveway approaches based on refined building plans which resulted in non-ADA compliant sidewalk along the private street. The amended map and improvement plans were modified to reflect a new 3’ pedestrian access easement adjacent to the private sidewalks to conform with ADA accessibility requirements and city standards.

The developer also submitted preliminary plans for the Coastal Development Permit Application for the housing intended for the subdivision. Additional street parking spaces were required and provided on Lots 11 and 12. Modifications to the easements are needed to provide pedestrian access around these parking spaces.

A 3’ Utility Easement for Irrigation Purposes was reserved for the exclusive benefit of the owners of the lots in the subdivision as part of the recorded map. The Coastside County Water District (CCWD) has required the water meters for each lot to be placed at the back of the sidewalk to prevent the potential for tripping hazards. CCWD required the developers to grant 7

the mentioned Utility Easement to them in order to proceed with constructing water infrastructure throughout the subdivision.

The Emergency Vehicle Access (EVA) Easement noted in the previously adopted resolution was through the adjacent property and not through this subdivision. Correction was made to allow the EVA access through this subdivision.

A Public Utility Easement created in the dedicated Park Area and Lot 2, as well as the removal of the Public Utility Easement within Lot 1 are shown in this Amended Map. The Document Number for the Affordable Housing Restriction over Lot 1 is now added to this Amendment.

Due to the minor changes that need to be addressed, staff recommends for the City Council to make a determination that the following findings can be made concerning the modifications (Government Code Section 66472.1) and adopt a resolution for the Amended Tract Map No. 16- 02:
1) That the modifications proposed did not impose any additional burden on the present fee owner of the property; and
2) That the modifications proposed do not alter any right, title or interest in the real property reflected in the recorded map; and
3) That the map as modified conforms to the provisions of Section 66474 of the Government Code; and
4) Authorizing the City Engineer and City Attorney to make such revisions that are acceptable under said Resolution and applicable law; and accepting, on behalf of the Public, all dedicated Public Easements (Public Utility Easements and Emergency Vehicle Access Easements) as noted as changes on the Amended Map.

ATTACHMENT:

Resolution
Attachment 2 – Original Final Map
Attachment 3 – Amended Final Map
8 Resolution No. C-2023-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY TO APPROVE THE AMENDED MAP OF THE CREEKSIDE COURT SUBDIVISION (NO. 16-02) WHEREAS, on November 7, 2017, by City Council Resolution No. C-2017-92, the City Council conditionally approved the requested Tentative Subdivision Map, Coastal Development Permit, and Use Permit, to divide two parcels totaling 5.5 acres into 12 residential lots, associated with typical subdivision improvements; and
WHEREAS, on July 20, 2021, by City Council Resolution No. C-2021-63, the City Council approved the final map, subject to revisions, approved the Subdivision Improvement Agreement, accepted on behalf of the City for Public Use, the 10’ Trail Easement, Public Service Easements, and Emergency Vehicle Access Easement, rejected any offer in dedication of Public Utility Easements, and authorized staff to execute and record the Final Map (as revised) and the Subdivision Improvement Agreement concurrently with the Affordable Housing Compliance Agreement; and
WHEREAS, the Final Map was recorded with the County of San Mateo Recorder’s Office on December 21, 2021; and
WHEREAS, the original developer, Gibraltar Capital, Inc., sold the subdivided land, in full, to HMB Coast, LLC.; and
WHEREAS, an Amended Map was needed due to some proposed and required changes, such as, ADA compliant accessibility, modifications towards easements, and clarifications; and WHEREAS, a document formalizing the granting of dedicated public easements, as shown on the Amended Map of Creekside Court will be completed at a later date; and NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby makes the determination that the following findings can be made concerning the modifications (Government Code Section 66472.1) and adopt a resolution for the Amended Tract Map No. 16-02:
1) That the modifications proposed did not impose any additional burden on the present fee owner of the property; and
2) That the modifications proposed do not alter any right, title or interest in the real property reflected in the recorded map; and
3) That the map as modified conforms to the provisions of Section 66474 of the Government Code; and
4) Authorizing the City Engineer and City Attorney to make such revisions that are acceptable under said Resolution and applicable law; and accepting, on behalf of the 9 Public, all dedicated Public Easements (Public Utility Easements and Emergency Vehicle Access Easements) as noted as changes on the Amended Map. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of May 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
10 21 December 21 5:00 p 144 5-7
2021-900225 /s/ Minh Nguyen
$163.00
11 12
13 14
15 16

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jessica Blair, Communications Director/City Clerk TITLE: DISPLAY OF THE MENTAL HEALTH AWARENESS FLAG FOR THE MONTH OF MAY 2023 AT CITY HALL TO COMMEMORATE MENTAL HEALTH AWARENESS MONTH ______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing display of the Mental Health Awareness Flag at City Hall for the month of May 2023.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

STRATEGIC ELEMENTS:

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

BACKGROUND:

In May 2020, the City Council formally adopted a flag policy which established that the City’s flagpoles are not intended to be a forum for free expression by the public.

The adopted flag policy contains the following directives:

1. Flags shall be displayed in accordance with federal and state laws and regulations.

2. Authorizes the City Manager to order that the City flag be lowered to half-staff in honor of a City / County employee killed in the line of duty.

3. Commemorative or Ceremonial Flags:
• Can only be displayed on the City Flag flagpole located at City Hall. • The display of any commemorative or ceremonial flags will be subject to Council approval by resolution and will serve as an expression of the City’s official sentiments.
• The City will not display a commemorative or ceremonial flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party.
17 Following a request to display a flag commemorating Mental Health Awareness Month, this proposed resolution is before the Council according to the policy adopted.

DISCUSSION:

The City Council of the City of Half Moon Bay wishes to express its support for mental health awareness in the United States, and specifically on the Coastside.

National Mental Health Awareness Month provides an opportunity for communities to work together to bring awareness to and break through the stigma surrounding mental health illness. The display of the green mental health awareness flag serves to express the City’s official support of the importance of mental health awareness.

Over the course of the month, the City will share Mental Health Mondays on social media and additional mental health resources on all communications channels.

ATTACHMENT:

Mental Health Awareness Flag Resolution
18 RESOLUTION NO. C-2023-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE DISPLAY OF THE MENTAL HEALTH AWARENESS FLAG FOR THE MONTH OF MAY 2023 AT CITY

HALL TO COMMERORATE MENTAL HEALTH AWARENESS MONTH
WHEREAS, the City Council of the City of Half Moon Bay wishes to express its support for mental health awareness in the United States, and specifically on the Coastside; and WHEREAS, the display of the green mental health awareness flag serves to express the City’s official support of the importance of mental health awareness; and WHEREAS, the City’s flagpoles are not intended to be a forum for free expression by the public; and
WHEREAS, the Mental Health Awareness Flag will be flown for the month of May 2022 at City Hall.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Half Moon Bay hereby authorizes the display of the Mental Health Awareness Flag on the City flagpole located in front of City Hall for the month of May 2023 in support of Mental Health Awareness month. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of May 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
19

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jessica Blair, Communications Director / City Clerk TITLE: RECEIPT OF LEGISLATIVE POSITION LETTER
______________________________________________________________________________ RECOMMENDATION:

Receive and file letter of support for Assembly Bill 1379.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

STRATEGIC ELEMENT:

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

DISCUSSION:

Annually, the City adopts a Legislative Platform to allow staff to send position letters regarding various bills / issues of interest to the City. The 2023 Legislative Platform was adopted by the City Council on April 4, 2023. The platform provides staff direction and allows the City, on the Council’s behalf, to respond in support of or opposition to bills and other legislative and administrative actions. The City Council has delegated its authority to the Mayor and / or City Manager to sign position letters consistent with the legislative platform. Townsend Public Affairs monitors legislation for the City and communicates frequently with staff on bills.

Occasionally, the League of California Cities will send action alerts for bills affecting municipalities. Staff reviews those alerts as well and will take action on any that align with the City’s Legislative Platform.

In the spirit of transparency, when position letters are sent by the City, staff will include them in a City Council agenda packet for viewing by the Council and the community.

ATTACHMENTS:

AB 1379 Support Letter
20 April 20, 2023
The Honorable Diane Papan
California State Assembly
1021 O Street, Suite 4220
Sacramento, CA 95814
Re: AB 1379 (Papan) Open meetings: local agencies: teleconferences City of Half Moon Bay – Letter of Support Dear Assembly Member Papan:

On behalf of the City of Half Moon Bay, I write in support of your bill, AB 1379, which would require a legislative body electing to use teleconferencing to instead post agendas at a singular designated physical meeting location, rather than at all teleconference locations. The bill would also remove the requirements for the legislative body of the local agency to identify each teleconference location in the notice and agenda, that each teleconference location be accessible to the public, and that at least a quorum of the members participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction. Additionally, the bill would require the legislative body to have at least 2 meetings per year in which the legislative body’s members are in person at a singular designated physical meeting location, amongst other provisions.

As we saw over the course of the pandemic, teleconferencing options for public meetings with modified posting requirements work and are an effective way of increasing participation and civic engagement while maintaining public safety. This bill is an exciting step to further explore the ways in which public meetings operate.

Thank you for your work on this topic, and again, I am pleased to support AB 1379.

Sincerely,
Deborah Penrose
Mayor of Half Moon Bay
DocuSign Envelope ID: 7BB5BC7F-1F6E-467E-BF1D-849AD06D9458 21

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 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 – AMERICAN

RESCUE PLAN ACT (ARPA) GRANT AGREEMENT WITH THE COUNTY OF SAN MATEO
______________________________________________________________________________ RECOMMENDATION:

Adopt a Resolution:
1) Authorizing the City Manager to execute a grant agreement between the City and the County of San Mateo (County), in an amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) in federal American Rescue Plan Act (ARPA) funds received by the County, for predevelopment expenses for an affordable housing development project (the Project) on City-owned land at 535 and 555 Kelly Avenue (the Site); and
2) Authorizing allocation of these ARPA funds from the City to Mercy Housing California (Developer) to support Project predevelopment activities; and 3) Authorizing the City Manager to execute a grant agreement between the City and the Developer, in an amount not to exceed One Million Five Hundred Thousand Dollars ($1,500,000), for the purpose of making these ARPA funds available to support predevelopment activities for the Project.

FISCAL IMPACT:

There is no fiscal impact to the City in accepting these ARPA funds from the County. City staff will, however, be tasked with disbursing these funds to the Developer during the Project predevelopment period. Staff will also administer the City’s $1 million Project predevelopment loan from the City’s Affordable Housing Fund (AHF) that was approved at the February 21, 2023, City Council meeting.

STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety, and Inclusive Governance Elements of the Strategic Plan.
22

BACKGROUND:

The property located at 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 (TACC) 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 is approximately 6,200 square feet and abuts the City’s parking lot located on the south side of the TACC at 535 Kelly Avenue. A year ago, the Community Development Director 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 The City received one proposal, submitted by a two-agency team comprised of Mercy Housing California and Ayudando Latinos A Soñar (ALAS). As originally proposed, the development included 40 units of affordable multi-family rental housing for senior farmworkers, as well as 2,050 square feet of space for a Farmworker Resource Center to be managed by ALAS. As proposed, the Developer will develop the property and deliver ongoing property management and resident services. ALAS will be a vital partner throughout the development process by supporting community outreach and marketing, in addition to operating the resource center once the project is complete.

At its October 4, 2022, meeting, the City Council adopted two resolutions. The first 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 Developer.

In addition to City actions taken, the San Mateo County Board of Supervisors approved a resolution on October 4, 2022 allocating $1,500,000 in State and Local Fiscal Recovery Funds it had received under the federal ARPA program to support the development of the Project serving local farmworkers impacted by the Covid-19 pandemic, and authorizing the County Executive, or designee, to enter into an agreement with the City to facilitate the County’s contribution of these ARPA funds towards development of the Project.

On February 21, 2023, City Council adopted a resolution authorizing the City Manager to execute a predevelopment loan agreement between the City and the Developer, in an amount not to exceed $1 million from the City’s Affordable Housing Fund, to support predevelopment activities for the Project.
1 555 Kelly Avenue - Affordable Housing RFQ | Half Moon Bay, CA (half-moon-bay.ca.us) 23

On March 27, 2023, the Developer and ALAS held a community meeting at the Half Moon Bay Library. The meeting was well-attended by about 65 participants who shared feedback on the project after a presentation by the applicant team. Based on responses from the initial stages of the community engagement process, certain preliminary changes have been made since the original proposal was submitted. These include changes to the building design, height, parking provisions, unit count, and unit size. The Developer anticipates submitting a preliminary application to the City in mid-May 2023 in order to obtain additional feedback on the proposed design concept prior to submitting a formal application for entitlements.

DISCUSSION:

By approving the resolution (Attachment 1), the City Council authorizes two separate, but related agreements to be executed by the City Manager. The City and County agreement accepts ARPA funds and allows the City to manage and distribute these funds. The second, similar grant agreement to be executed between the City and the Developer, facilitates the pass-through of these ARPA grant funds to support Project predevelopment work for specific activities, specified in Exhibit A to the resolution. The term “predevelopment” refers to the period of time prior to the start of construction during which various project-related planning, site investigation, community outreach, financing, entitlement review, and other development activities are carried out.

The Project as currently envisioned includes a mix of studios, one-bedroom, and a few twobedroom units. The Project would target senior farmworker households with incomes in the following categories: Acutely Low-Income (15% of Area Median Income (AMI), Extremely LowIncome (up to 30% AMI), and Very Low-Income (up to 50% AMI). 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 extremelylow /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 4 Person Households) Income Category Household Size and Income Limits
1 2 3 4
Acutely Low Income (15% AMI) $17,450 $19,900 $22,400 $24,900 Extremely Low Income (30% AMI) $39,150 $44,750 $50,350 $55,900 Very Low Income (50% AMI) $65,250 $74,600 $83,900 $83,200 Median Income $116,200 $132,800 $149,400 $166,000
Source: https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf 24

Funding predevelopment activities provides critical-timing 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. The predevelopment stage leads to entitlements such as a coastal development permit. To plan and construct affordable housing that meets the needs of the lower-income populations described above, it is typical for affordable housing developers to seek multiple sources of financing and subsidies in order to achieve a financially feasible development.

Exhibit A to the Resolution provides a breakdown of predevelopment costs. As described above, the County has committed $1.5 million in ARPA funds to the Project for predevelopment activities. If the City accepts these grant funds and makes them available for the Project, the combined amount of the ARPA grant funds and the City’s $1 million predevelopment loan would provide the necessary $2.5 million in local funding needed to complete predevelopment work.

The Developer’s financing proforma (Attachment 2) outlines a total City funding commitment of $2 million, inclusive of the predevelopment loan amount, in addition to a long-term lease of the land. The Developer 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 this operating subsidy; however, the Developer is expected to secure financial appropriations to cover these expenses.

SUMMARY:

During the predevelopment phase of the Project, specific unit type/mix, site features and building design characteristics will be developed and reviewed 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) 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 provisions outlined in the Local Coastal Land Use Plan, including the Workforce Housing Overlay that supports agriculture as a Coastal Act priority use. The future coastal development permit will be 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 25

contributions to reach a financially feasible project. For this Project, the incomes of the resident population will be in the lowest income categories, increasing the need for the Developer to secure local financial support as well as other financing such as tax credits. Should the City accept the County ARPA grant funds allocated by the County for the Project, these funds, together with the approved City predevelopment loan, will be sufficient to cover anticipated Project predevelopment costs.

ATTACHMENTS:

1. Resolution
Exhibit A. Developer Predevelopment Costs

2. Developer Project Financing Proforma
26 Resolution No. C-2023-____

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

CITY MANAGER TO EXECUTE AGREEMENTS WITH THE COUNTY OF SAN MATEO AND MERCY

HOUSING CALIFORNIA TO ACCEPT AND ALLOCATE FEDERAL AMERICAN RESCUE PLAN FUNDS FOR PREDEVELOPMENT EXPENSES FOR AN AFFORDABLE HOUSING PROJECT AT 535 AND 555

KELLY AVENUE IN HALF MOON BAY FOR LOCAL FARMWORKER HOUSEHOLDS 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 using the entire property located at 555 Kelly Avenue and a portion of the property located at 535 Kelly Avenue; 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, Mercy Housing California (Mercy Housing), in partnership with Ayudando Latinos A Soñar (ALAS), a nonprofit organization with deep ties to the farmworker community, submitted a response to the RFQ proposing construction of an affordable farmworker housing development consisting of approximately 40 residential units and associated amenities as well as a farmworker resource center serving the local community (the Project); and WHEREAS, on November 3, 2022, the City entered into an Exclusive Negotiations Agreement with Mercy Housing to enable Mercy Housing’s affiliate, Mercy Housing California 110, L.P., a California limited partnership (Developer) to carry out predevelopment and development activities associated with the Project; and WHEREAS, on February 21, 2023, the City approved a predevelopment loan for the Project using funds from the City’s Affordable Housing Fund, in an amount not to exceed One Million Dollars, to assist the Developer with necessary Project predevelopment activities; and WHEREAS, since its emergence in early 2020, the COVID-19 pandemic has negatively impacted public health and the economy on a global scale, in the country and in San Mateo County; and
WHEREAS, the County received State and Local Fiscal Recovery Funds under the federal American Rescue Plan Act (ARPA) which can be used among other applications to respond to the public health emergency and its negative economic impacts; and WHEREAS, households earning less than 65% of the Area Median Income (AMI) in the County have been impacted by the pandemic and its negative economic consequences, 27 including farmworker households in Half Moon Bay who are at or below this income level and for whom a lack of affordable housing has been exacerbated by the pandemic; and WHEREAS, the Project will serve local farmworker households with extremely low income (30% of AMI) or low income (50% of AMI); and
WHEREAS, the County, by resolution of its Board of Supervisors on October 4, 2022, has authorized an allocation of ARPA funds in the amount of $1,500,000 (the ARPA Funds) to support predevelopment and development work for the Project; and WHEREAS, the City wishes to accept the County’s allocation of ARPA funds and reallocate these funds to the Developer in order to support predevelopment and development work for 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 grant agreements with the County of San Mateo and Mercy Housing California in an amount not to exceed One Million Five Hundred Thousand Dollars in ARPA funds, to support predevelopment activities in substantial conformity to activities presented in Exhibit A and to allocate these funds for an affordable housing project on Cityowned 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 2nd day of May, 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
28 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

EXHIBIT A
29 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
30 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)

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

32 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

33 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

34 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
35 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
36 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
37 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

38 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

39 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

40

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 2023
TO: Honorable City Council
VIA: Matthew Chidester, City Manager
FROM: John Doughty, Assistant City Manager

TITLE: INTRODUCTION AND FIRST READING OF “FEEDING OF WILDLIFE” ORDINANCE ______________________________________________________________________________ RECOMMENDATION:

Conduct a Public Hearing and introduce on first reading an ordinance adopting a new Chapter

8.08 entitled “Feeding of Wildlife” to the Half Moon Bay Municipal Code.

FISCAL IMPACT:

There is no direct fiscal impact associated with introducing this Ordinance. Enforcement will be on a complaint and “as-needed” basis by existing staff like any other violation of the Municipal Code.

STRATEGIC ELEMENT:

This recommendation supports the Healthy Communities and Public Safety Element of the Strategic Plan.

BACKGROUND/DISCUSSION:

On August 16, 2022, the City Council agreed to the placement of an item on a future agenda regarding the feeding of wildlife by visitors and community members, notably omniverous birds such as ravens and crows. The request was at the behest of a group of residents that believe the practice is deleterious to the local environment. This group advocated for a local ordinance to restrict the feeding of such birds in Half Moon Bay.

On September 21, 2022, the City Manager and Interim Assistant City Manager met with a group of residents to discuss their concerns and to receive an update on their research regarding protection of wildlife. Their research material was provided in the October 4 staff report to the City Council.

On October 4, 2022, the City Council conducted a workshop on the issue. Several members of the public spoke advocating for the preparation of an ordinance to restrict the feeding of wildlife in the City limits of Half Moon Bay. Following the public input, the City Council 41

deliberated on the subject. The City Council requested that staff seek input from other local experts. The Peninsula Humane Society was contacted and agreed to send one of their wildlife specialists to speak to the community and City Council.

On October 18, 2022, the City Council received a presentation from the Peninsula Humane Society. Following this informative presentation, City Council gave staff direction to conduct further research and return with a proposed draft ordinance if deemed appropriate.

Additionally, the City Council requested staff to develop an education program to discourage feeding of wildlife focused on the Poplar Beach area.

Following the October 18 meeting, staff met with representatives of the two local feral cat nonprofits. These meetings were informative and clearly established, in staff’s mind, that existing ordinances are being abided by and that feral cats should not be included in this ordinance discussion.

On March 7, 2023, the City Council conducted a community workshop to review a draft version of the proposed ordinance. Following that workshop, the City Council directed staff to return with the ordinance for formal adoption process.

DISCUSSION:

The original impetus for this item focused primarily on the feeding of ravens and the impacts this activity was having on other local wildlife as well as neighboring properties. In the process of developing the draft ordinance, we did find that ravens and crows are indigenous to California and most of the United States and that these birds are omnivorous and often compete with raptors and other birds of prey for food wherever they coexist.

City staff also communicated with two local bird experts. These experts indicated that feeding of ravens and crows (Corvus) is problematic for the following reasons:
1) Regular feeding can and often leads to concentration of Corvus where naturally they would not concentrate; and
2) Concentration of Corvus leads to unnatural increases in population; and 3) Increased population means greater competition for food and habitat with raptors and other birds of prey; and
4) Ultimately, this could result in loss of raptors and birds of prey in the coastal bluff area which could be detrimental to the health of the habitat of this and other areas on the Coastside.

The local experts indicated that small backyard bird feeders are important to the survival of the wild songbird population and that any proposed regulations should not preclude the use of small, suspended bird feeders, including hummingbird feeders. 42

In the course of discussions with community members and City Council, it became evident that there are many different types of wildlife and habitats that are being affected by wellintentioned people throughout the City. These include coyotes, deer, wild turkeys, foxes, skunks, raccoons, opossums, squirrels, ducks, geese, ravens, crows, and gulls. Feeding of these animals can also result in increased numbers which in turn can lead to the presence of apex predators like Mountain Lions.

California Department of Fish and Wildlife (CDFW) have regulations in place that prohibit the feeding of wildlife in the State. CDFW has limited resources and capacity to respond to and engage in enforcement in the City. State law grants local agencies like the City of Half Moon Bay the authority to enact laws to protect public health, safety and welfare. From our research, we have found that many jurisdictions have chosen to supplement the CDFW regulations by enacting local ordinances prohibiting the feeding of wildlife.

In response to City Council direction, staff prepared a draft ordinance. The ordinance is modeled after local ordinances reviewed over the last several months. The draft ordinance:
• Deems that feeding of wildlife is both detrimental to wildlife health and causes a public health nuisance and safety hazard that negatively impacts public health and welfare. • Defines "Wildlife" as any non-domesticated species of animal including but not limited to coyotes, deer, wild turkeys, foxes, skunks, raccoons, opossums, squirrels, ducks, geese, ravens, crows, and gulls.
• Establishes that no person shall purposely or knowingly feed wildlife on public or private property in the City of Half Moon Bay.
• Limits feeding of birds on private properties is only permitted via feeders subject to specific criteria.
• Establishes that a violation of any provision of the Ordinance shall constitute an infraction and a public nuisance, subject to enforcement and penalties, civil fines, and other remedies.

The ordinance, as written, applies to both public and private lands within the jurisdiction and authority of the City of Half Moon Bay. The ordinance would be enforceable by any law enforcement agency as well as City Code Compliance staff. As staff has indicated previously, there is limited capacity to monitor the beaches, paths and trails in the City. Enforcement will primarily be based upon direct observation and upon formal complaint.

Upon adoption, staff will work on developing permanent signage and educational materials.

Staff will seek assistance from the Parks and Recreation Commission on design and placement locations.
43 ORDINANCE NO. C-2023-____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, CALIFORNIA AMENDING TITLE 8 BY ADDING NEW CHAPTER 8.08 ENTITILED “FEEDING OF WILDLIFE” THE CITY COUNCIL OF THE CITY OF HALF MOON BAY DOES ORDAIN AS FOLLOWS:

Section 1. Findings: The City Council finds and declares as follows:
(a) The Municipal Code of the City of Half Moon Bay requires periodic updates to reflect current information, changes in law, provide clarification to the community, and provide for improved customer service and administration of City business; and (b) Section 251.1 of Title 14 of the California Code of Regulations prohibits the harassment of any game or nongame bird or mammal or furbearing mammal, expressly including intentional acts such as feeding that disrupt the animal's natural foraging behavior; and (c) The feeding of wildlife can lead to aggressive behavior towards humans, which presents health and safety concerns for residents and visitors of the City; and (d) The feeding of wildlife can artificially support the growth and carrying capacity of urban wildlife populations, compromising wildlife health and increasing human exposure to, and potential conflicts with wildlife; and
(e) The feeding of wildlife can cause certain species to localize activity in the vicinity of the food source, thus increasing associated negative impacts on property owners and/ or individuals within those neighborhoods; and
(f) The feeding of wildlife can lead to negative impacts on animals, people and the environment.

Section 2. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council herby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 3. Publication. The City Clerk of the City of Half Moon Bay is hereby directed to publish this Ordinance, or the title hereof as a summary, pursuant to Government Code Section 36933, once within fifteen (15) days after its passage in the Half Moon Bay Review, a newspaper of general circulation published in the City of Half Moon Bay. 44 Section 4. Effective date. This Ordinance shall take effect and be in force on the thirtieth (30th) day from and after its final passage.

NOW THEREFORE, the City Council finds that the ordinance, text included as Exhibit A, prohibiting the intentional and negligent feeding of certain types of wildlife, as defined, and further specifying types of permissible and prohibited conduct regarding interaction with wildlife in the City, is consistent with the City's long-standing commitment to protect and conserve biological resources and public safety and will promote the public health, safety and welfare.

INTRODUCED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the 2nd day of May, 2023.

ADOPTED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the _______ day of ______, 2023, by the following vote:

Ayes, Councilmembers:

Noes, Councilmembers:

Absent, Councilmembers:

Abstain, Councilmembers:

ATTEST:
___________________________ _______________________
Jessica Blair, City Clerk Deborah Penrose, Mayor
45 Exhibit A
CHAPTER 8.08

FEEDING OF WILDLIFE
Sections:

8.08.010 Purpose.

8.08.020 Definitions.

8.08.030 Feeding of Wildlife Prohibited.

8.08.040 Exceptions.

8.08.050 Violation and Enforcement.

8.08.010 Purpose.

Feeding of wildlife is both detrimental to wildlife health and causes a public health nuisance and safety hazard that negatively impacts public health and welfare.

This chapter is intended to prohibit, with certain exceptions, the feeding of wildlife within the City of Half Moon Bay to protect the environment and promote public health, safety and welfare.

8.08.020 Definitions.

For purposes of this Chapter, the following definitions shall apply:
“Bird Feeder” means a device placed outdoors to supply nuts, seeds or nectar for wild birds to eat.
"Feed" means to give, distribute, place, expose, deposit, or scatter any edible material on any public or private property with the intention of feeding, attracting, domesticating or enticing wildlife, whether or not wildlife is in the vicinity at the time. Feeding does not include baiting in the permitted and legal take or depredation of wildlife in accordance with federal, state, and local law.
"Person" means any individual, corporation, company, partnership, firm, association, or political subdivision of this State subject to municipal jurisdiction. "Wildlife" means any non-domesticated species of animal including but not limited to coyotes, deer, wild turkeys, foxes, skunks, raccoons, opossums, squirrels, ducks, geese, ravens, crows, and gulls.
46 8.08.030 Feeding of Wildlife Prohibited.

A. No person shall purposely or knowingly feed wildlife on public or private property in the City of Half Moon Bay.

B. No person shall leave or store any refuse, garbage, pet food, seed or birdseed, fruit, meat, dairy, vegetable, grain or other food in a negligent manner likely to attract wildlife.

C. No person shall fail to take remedial action to cease contact or conflict with wildlife, including to secure or remove outdoor refuse, cooking grills, pet food, backyard bird feeders or any other similar food source or attractant, after being advised by the City of Half Moon Bay to undertake such remedial action.

8.08.040 Exceptions.

The prohibitions in Section 8.08.030 are not applicable to:

A. Landscaping, gardening, and/or maintaining vegetable gardens, fruit and nut trees or other plants, so long as such activities are not conducted for the purpose of feeding wildlife as defined in this article.

B. Feeding of birds on private properties, to the extent authorized by law and subject to the following requirements:

1. Feeding shall only be via a bird feeder;

2. All bird feeders shall be placed shall be suspended on a cable or otherwise secured at least five feet above ground level so as to prevent the bird feeders from being easily accessible to rodents and unintended wildlife.

3. The area below and around bird feeders must be kept clean and free of seed and an accumulation of feces.

4. No person shall knowingly allow a bird feeder to become an attractant for rodents or wildlife other than the intended birds.

5. Bird feeders shall be maintained in a manner to prevent the spread of disease among wild bird populations.

C. Any State or local employee or agent authorized to implement a wildlife management program involving baiting, or any other person or business lawfully authorized to bait and trap wildlife pursuant to State law.

D. Any person who is the legal owner or guardian of a wildlife species maintained and confined under a valid license or permit issued by the California Department of Fish and Wildlife or U.S.

Fish and Wildlife Service, and in compliance with all applicable laws. 47 E. A wildlife rehabilitator, under a valid license or permit issued by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service, who is temporarily caring for sick, injured, or orphaned wildlife in compliance with all applicable laws.

F. Any person who feeds trapped, injured, or orphaned wildlife between the time that a wildlife rehabilitator or agency charged with animal control is notified and the time the animal is picked up. Any person that discovers such trapped, injured, or orphaned wildlife must immediately notify an authorized animal control agency, and no person may intentionally keep such wildlife beyond the time reasonably necessary for animal control services to access and transport the wildlife.

G. Any property owner baiting, for the purpose of trapping, wildlife on their property when authorized by, and in accordance with, State law including but not limited to trapping gophers, house mice, moles, rats, and voles pursuant to Fish and Game Code section 4005(f); taking of certain mammals found injuring crops or property pursuant to Fish and Game Code section 4152; taking of certain nongame birds and mammals such as weasels, skunks, opossum, moles and rodents pursuant to 14 CCR§ 472; or as otherwise permitted and authorized by State law.

8.08.050 Violation and Enforcement
The violation of any provision of this chapter shall constitute an infraction and a public nuisance, subject to enforcement and penalties, civil fines, and other remedies. 48

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Public Works Director/City Engineer

TITLE: UPDATE ON JOHN L. CARTER PARK IMPROVEMENTS PROJECT (CIP NO. 0611) ______________________________________________________________________________ RECOMMENDATION:

Receive an update on the John L. Carter Park Improvements Project and provide feedback to Staff.

FISCAL IMPACT:

There is no additional fiscal impact at this time. The design modifications being considered are funded through previously approved and budgeted contingency funds. To date, the City has expended approximately $1,050,000 for the project that is reimbursable to the State grant.

STRATEGIC ELEMENT:

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

BACKGROUND:

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

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

The John L. Carter Park Improvements Project includes a new amphitheater including terraced seating, a new stage with storage space and changing room, a children’s play area, picnic area, restroom and concession stand building, park access improvements, a solidarity trail, landscaping, lighting, and utility improvements.
49

On December 8, 2020, the Planning Commission approved the environmental review and adopted a mitigated negative declaration (MND) and approved PDP-19-059, an application for a Coastal Development Permit, Use Permit, Architectural Review, and Parking Exception, to allow the renovation of the John L. Carter Park Project. On March 9, 2021, the Planning Commission approved an addendum to the MND for the project to clarify some lighting and height discrepancies for the theatrical stage.

The City of Half Moon Bay, with support from Assemblymember Berman, was successful in obtaining funding through the California State Budget in the amount of $4.75 million to assist the City in constructing improvements at John L. Carter Park, effective FY 2021-22. This funding source is via California Proposition 68.

On December 21, 2021, the City Council approved the filing of the project application for Carter Park with the State of California Local Assistance Specified Grant and authorizing the City Manager to conduct all necessary business to complete the grant scope and enter into the funding agreement for the John L. Carter Park project.

On May 17, 2022, the City Council approved the award of a construction contract to Wickman Development and Construction of San Francisco, California, in the bid amount of $4,971,000 and a construction contingency amount of 15 percent or $745,650 as well as contracts for biological monitoring and material testing and inspection services from qualified professionals, SWCA Inc. ($35,079) and Bay Area Geotechnical Group ($115,415), respectively.

DISCUSSION:

Based on the original design, three items were purposefully excluded from the construction contract due to budgetary constraints. These items are the audio/visual system, children’s play structures and the main entry sign at Main Street. Originally, City staff was working with partners (including Mariner’s Church, Shakespeare in the Park, and Friends of Half Moon Bay Parks) to aid in fundraising but those efforts have been postponed in light of other critical path items that have since become a high priority.

Historically, maintenance and site access to Carter Park has been provided through the Stone Pine Shopping Center: vehicular access via the shopping center parking lot, and pedestrian access via a sidewalk from Main Street along the southerly boundary of the parking lot. The Carter Park renovation project was subject to significant community advocacy, discussion, stakeholder outreach and legal noticing. Throughout the concept development and entitlement process, staff were in regular communication with neighbors, stakeholders and interested parties. City staff welcomed the opportunity to discuss needs and concerns regarding the project, including conversations with adjoining owners and tenants. From the beginning, staff and relevant stakeholders understood and conveyed that the project would require a temporary construction easement(s) as part of its construction. Staff met with and received a verbal agreement on a temporary construction agreement, in principle, from the owner of the Stone Pine Center. Unfortunately, the owner of the Center decided to not sign the temporary construction agreement. City staff, including the City Manager and City Attorney, have been 50

working with the owner to resolve this matter. Staff has successfully negotiated a Temporary Construction Easement with Mariner’s Church. Unfortunately, access from Mariner’s Church is not adequate for most of the construction needs.

Absent the TCE from Stone Pine Center, the City shifted focus to completing the Coastside County Water District’s requirement for upgrade of the existing water service to Carter Park.

After reviewing the locations of public watermains and other factors, it was determined that an alignment extending from the Mariner’s Church site was most appropriate. As noted previously, Mariner’s Church granted a TCE to the City. The contractor is mobilizing and preparing to install the water line extension to Carter Park.

During the fall and winter wet season 2022 and 2023, the City and region experienced one of the wettest seasons on record. The National Weather Service identified more than 10 atmospheric rivers that brought historic rainfall. The City experienced localized flooding in conjunction with these storm events, with significant flooding occurring in and along Pilarcitos Creek. During the New Years period, Pilarcitos Creek flows reached flows in excess of 2100 cfs.

The flow was one of the highest recorded since USGS started monitoring at this site in 1967.

The entire Pilarcitos Creek watershed, including Carter Park, was affected by these historic flows. Carter Park required clean-up, but no infrastructure was damaged.

The construction delays resulting from the lack of TCE from the Stone Pine Center have allowed staff to reexamine the project design, given the extreme weather condition of this past winter.

Over the last several months, staff have met with the project architect, engineer, and contractor to evaluate and identify means to modify elements of the project to increase overall resiliency by minimizing flooding impacts on the future improvements. The revisions now incorporated into the project design include, but are not limited to:
- Redesign of the stage area including construction materials and methods to improve flood resiliency; and
- Reduction and relocation of storage facilities and dry utilities in the lower area of the park; and
- Changing the low-lying surface areas around the stage to natural turf which will better withstand flooding conditions; and
- Utilizing a different synthetic turf material that is more flood-resilient in the terraced seating areas; and
- Modifications to dry utilities and lighting on the terraced seating and restroom/snack bar structure; and
- Other improvements to protect against future flows and standing waters.

In conclusion, the John L. Carter Park Improvements Project remains an important recreational, performing arts, and economic development project that will add to the vibrancy of our downtown. Although the original plans for the project included flood resilient design and construction elements, the delays and subsequent historic winter storms have provided an opportunity to increase the resiliency and ensure the project results in improvements that will 51

better withstand the test of time. Staff will continue working with the adjacent property owners to obtain necessary access rights to complete the project, and we welcome additional ideas and feedback from the City Council and community. 52 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: John Doughty, Assistant City Manager
TITLE: THE SPIRIT OF LIFE BELL SCULPTURE
______________________________________________________________________________ RECOMMENDATION:

By resolution, authorize the City Manager to execute a Public Art Agreement between the City of Half Moon Bay and Silvio Modena III., formally accepting the donation of the “The Spirit of Life Bell” sculpture created by Silvio J. Modena Jr.; and affirming the continued temporary placement of the sculpture in the City Hall parking lot until such time as a permanent location is established by a subsequent resolution of the City Council.

FISCAL IMPACT:

The operating budget of the City Manager’s Office is sufficient to cover the administrative costs of the art donation program. A community member has funded purchase of the sculpture and offered it as a public art donation to the City. Community members have also indicated a willingness to fund a portion of the costs of creating a new public space near City Hall as part of a project paying tribute to “service to country and community.” No estimate of costs is yet available and will be dependent upon accepted design and potential phasing.

STRATEGIC ELEMENT:

This recommendation supports the Healthy Communities and Public Safety Element of the Strategic Plan.

BACKGROUND:

In late summer of 2022, a group of community members approached the City regarding the potential donation of a piece of art created by artist Silvio Modena Jr. Mr. Modena passed away in October 2022 after battling cancer. Mr. Modena grew up in San Gregorio, the eldest son of an Italian immigrant artichoke farmer. He served in the U.S. Navy having joined with his long-time friend John (Farmer John) Muller. Mr. Modena created bells of various sizes and designs from used high pressure compressed air cylinders similar to those he used in the Navy.

On August 24, 2022, the Parks and Recreation Commission received a presentation regarding the proposed sculpture and possible donation. The Commission heard from community members in 53 support of the donation. Staff identified two possible locations for the piece. The first site being Kitty Fernandez Park and the second being Poplar Beach. During deliberation on the request, it was suggested that a location near City Hall would be optimal. Conversation ensued regarding the possibility of creating a new public space next to City Hall within a portion of the existing parking lot. The item was continued to September 28 to allow the proponents and City staff to better assess the City Hall parking lot option.

On September 28, 2022, the Parks and Recreation Commission received a follow-up presentation.

The Commission was informed that Steve Kikuchi of Kikuchi + Kankel Design Group agreed to work on conceptual designs with community members for a new (potential) public space which would have the sculpture/bell as a centerpiece. The Commission formally recommended the City Council allow further exploration of a City Hall parklet in connection with permanent placement of the sculpture.

On October 18, 2022, the City Council approved Resolution No. C-2022-104 authorizing acceptance of a loan of the bell sculpture and allowing temporary placement in the City Hall parking lot. The City Council authorized temporary placement of the Bell at City Hall through December 31, 2022.

Kikichi + Kankel subsequently developed three concept plans for a City Hall parklet on behalf of the community group. Erin Tormey, a member of the community group, has presented the concepts and received community input with the hope of landing on a preferred concept. Erin has agreed to provide the Council and the community an overview of the concepts and an update on the parklet planning effort.

On February 22, 2023, Erin Tormey presented the concept plans to the Parks and Recreation Commission. Ms. Tormey included an update on prior and planned outreach efforts.

DISCUSSION:

The purpose of tonight’s item is two-fold: first, to consider formal acceptance of the sculpture; and second to receive an update on planning for the potential City Hall parklet project. Exhibit A to the resolution is the art donation agreement (“Public Artwork Agreement”). This form was provided and recommended by the City Attorney. Optimally, the permanent location of the sculpture would be known. Staff are seeking City Council authorization to allow the sculpture to remain at City Hall indefinitely.

As noted in earlier background, the offered donation of The Spirit of Life Bell sculpture sparked interest from a diverse group of community members and has led to a conversation about creation of a public space adjacent to City Hall to recognize “Service to Country and Community.” Silvio has an impact on many people throughout his life and many of us were fortunate to be touched by his presence and humanity in his last days with us.

ATTACHMENT:

Resolution
54 RESOLUTION NO. C-2023-__

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

CITY MANAGER TO EXECUTE A PUBLIC ART AGREEMENT BETWEEN CITY AND SILVIO MODENA

III FOR THE SPIRIT OF LIFE BELL SCULPTURE AND ALLOW THE CONTINUED TEMPORARY

PLACEMENT WITHIN THE CITY HALL
WHEREAS, on October 18, 2022, the City Council accepted a temporary loan of a sculpture/bell titled “The Spirit of Life Bell” created by artist Silvio Modena, Jr., who grew up in San Gregorio, the eldest son of an Italian immigrant artichoke farmer; and WHEREAS, Mr. Modena, prior to his passing in October 2022, created bells from used high pressure compressed air cylinders including the large bell/sculpture that is proposed to be donated to the City; and
WHEREAS, Silvio desired to see this Bell be made available to the public and be used to acknowledge service to country and community; and
WHEREAS, on August 24 and September 28, the Parks and Recreation Commission in accordance with the City’s Public Art Policy, considered the offer of donation; and WHEREAS, at the September 28 the Parks and Recreation meeting, the Commission recommended temporary placement (on loan) of the sculpture, acceptance of the donation of the sculpture and supported exploration of creating a new public space in a portion of the City Hall parking lot to among other things house the sculpture; and WHEREAS, on October 18, 2022, the City Council approved the temporary placement (on loan) of the sculpture in the City Hall parking lot; and WHEREAS, the temporary placement of the sculpture on the City Hall parking lot was authorized through December 31, 2022 and that date has since passed; and WHEREAS, the sculpture has become a focal point for many visitors to the downtown and the loss of the single parking space has not proven to be an issue.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute a Public Art Agreement between the City of Half Moon Bay and Silvio Modena III, formally accepting the donation of the “The Spirit of Life Bell” sculpture created by Silvio J. Modena Jr.; and the continued temporary placement of the sculpture in the City Hall parking lot until such time as a permanent location is established by a subsequent resolution of the City Council.
55 ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 2nd day of May 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
56

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 2, 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: FINANCIAL AND TREASURER’S REPORT FOR THE QUARTER ENDED ON MARCH 31, 2023
______________________________________________________________________________ RECOMMENDATION:

Accept the Financial Report and the Treasurer’s Report for the quarter ended on March 31, 2023.

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. 57

DISCUSSION:

As of March 31, 2023, the General Fund revenues totaled $14.8 million or 65% of the approved budget. General Fund expenditures total $17.3 million or 73% 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 March 31, 2023, is $49.1 million of which $38.7 million is placed with the San Mateo County Treasurer’s Investment Pool and $7.7 million is placed with the State Controller’s Local Agency Investment Fund (LAIF), and $2.7 million in operating accounts with Wells Fargo Bank. The average weighted yield for the City’s cash and investments is 2.32 % 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 March 31, 2023

2. Treasurer’s Report for the quarter ended on March 31, 2023 58 CITY OF HALF MOON BAY
Quarterly Financial Report
March 31, 2023 – 75% of Year Complete
Prepared By:

Administra�ve Services Department
59 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
Funds Actual % of Budget Actual % of Budget
General Fund 14,898,085 65% 17,342,253 73.2%
Special Revenue Funds 6,137,927 52% 5,631,584 30.7%
Sewer Operations 3,702,811 43% 5,416,445 75.2%
Sewer Capital 224,175 87% 97,820 2.5%
Internal Service Funds 1,288,955 99% 877,457 56.7%
Pension Stabilization Fund 1,155,281 100% 1,152,095 100.0% TOTAL FOR ALL FUNDS 27,407,235 59% 30,517,654 54.7%
Revenues Expenditures
60 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
Other Revenues
General Fund Revenue Summary
Revenues to Budget
Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Transient Occupancy Tax 9,603,028 5,577,466 58% 5,501,484 $ 58% Property Taxes 3,888,050 2,460,641 63% 2,215,448 $ 48%
Sales & Use Tax 3,396,600 1,852,873 55% 1,859,601 $ 58% Franchise Tax 1,043,583 365,978 35% $ 346,483 34%
Business License Tax 312,243 280,103 90% $ 288,996 92%
Charges for Services 1,650,354 1,353,611 82% 1,543,263 $ 71% Interest and Investment 127,428 120,942 95% $ 44,035 -15% Other Revenues 2,530,381 2,362,290 93% 2,430,313 $ 92%
Transfers in 524,180 524,180 100% $ 511,395 36%
TOTAL 23,075,847 14,898,085 65% 14,741,017 60%
61 0% 20% 40% 60% 80% 100%
Administrative Services
City Clerk / Communications
City Council
City Managers Office
Community Development
Public Works
Debt Service
General Fund Expenditure Summary
Expenditures to Budget
Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Administrative Services 1,403,646 867,218 62% $ 795,230 74% City Clerk / Communications 1,058,340 668,144 63% $ 552,303 69% City Council 232,538 123,809 53% $ 106,487 66%
City Managers Office 8,702,739 5,855,454 67% 5,249,665 $ 74% Community Development 1,998,671 1,237,322 62% 1,115,370 $ 75% Public Works 3,626,745 2,204,756 61% 2,021,068 $ 69%
Debt Service 704,410 363,075 52% $ 661,448 52%
Non-Departmental - 52,120 $ - 0%
Operating Transfers 1,954,936 1,954,936 100% 1,872,144 $ 100% Capital Transfers 4,015,419 4,015,419 100% 2,747,577 $ 80% TOTAL 23,697,444 17,342,253 73.2% 15,121,291 75%
62 GENERAL FUND ANALYSIS:

The General Fund is the primary opera�ng fund of the City and is used to account for most opera�ng ac�vi�es. Table 1 below provides year-to-date through the third quarter comparable data for the current fiscal year and the prior year.

Through the third quarter, the city received $14.8 million in revenues for the fiscal year. Revenues have decreased from the prior years. While last year’s revenues were 60%, the current fiscal year revenues are 65% of the budget.

Expenditures through the third quarter total $17.3 million. Expenditures are tracking with 73% of budget.

Revised
Budget
Actuals as of
03/31/2023
% of
Budget
Final
Actuals
Actuals as of
03/31/2022
% of
Actuals
Revenues
Transient Occupancy Tax 9,603,028 5,577,466 58% 9,442,518 5,501,484 58% Property Taxes 3,888,050 2,460,641 63% 4,598,752 2,215,448 48% Sales & Use Tax 3,396,600 1,852,873 55% 3,208,517 1,859,601 58% Franchise Tax 1,043,583 365,978 35% 1,028,719 346,483 34% Business License Tax 312,243 280,103 90% 312,608 288,996 92% Charges for Services 1,650,354 1,353,611 82% 2,160,017 1,543,263 71% Interest and Investment 127,428 120,942 95% (284,664) 44,035 -15% Other Revenues 2,530,381 2,362,290 93% 2,646,135 2,430,313 92% Transfers in 524,180 524,180 100% 1,422,140 511,395 36% Total Revenues 23,075,847 14,898,085 65% 24,534,744 14,741,017 60% Expenditures
Administrative Services 1,403,646 867,218 62% 1,079,066 795,230 74% City Clerk / Communications 1,058,340 668,144 63% 795,855 552,303 69% City Council 232,538 123,809 53% 161,204 106,487 66%
City Managers Office 8,702,739 5,855,454 67% 7,064,942 5,249,665 74% Community Development 1,998,671 1,237,322 62% 1,496,081 1,115,370 75% Public Works 3,626,745 2,204,756 61% 2,912,840 2,021,068 69% Debt Service 704,410 363,075 52% 1,260,001 661,448 52%
Non Departmental - 52,120 - -
Operating Transfers 1,954,936 1,954,936 100% 1,871,542 1,872,144 100% Capital Transfers 4,015,419 4,015,419 100% 3,447,577 2,747,577 80% Total Expenditures 23,697,444 17,342,253 73% 20,089,107 15,121,291 75% FY 2022-23 FY 2021-22
Table 1: Third Quarter Budget to Actual Comparison
63 Revenues
Table 2 below shows a year-to-date summary of actual revenues through the third quarter for fiscal years 2022-23 and 2021-22.
• Transient Occupancy Tax: The City has received $5.5 million through the third quarter.

This is an increase of $75K from the prior year. This revenue stream is at 58% of the budget compared to the prior year’s 58%. This stream is tracking as anticipated. • Property Taxes: Most property tax funds are received in December and April. $2.4 million in revenues have been received thus far. Property taxes are at 63% of budget and tracking as anticipated.
• Sales & Use Taxes: The City received $1.8 million in sales & use taxes. This is a minimal decrease of $6K from the prior year. The City has received 55% of the budget for this revenue stream. When compared to the prior year’s 58%, this stream may be signaling an underperformance.
• All other revenues: The City received $2.3 million in other revenues. This category generally includes miscellaneous, non-material, or one-time funds. At 93% of budget, this category is tracking as anticipated.

Revised
Budget
Actuals as of
03/31/2023
% of
Budget
Actuals as of
03/31/2022
% of
Actuals
Revenues
Transient Occupancy Tax 9,603,028 5,577,466 58% 5,501,484 58% Property Taxes 3,888,050 2,460,641 63% 2,215,448 48%
Sales & Use Tax 3,396,600 1,852,873 55% 1,859,601 58%
Franchise Tax 1,043,583 365,978 35% 346,483 34%
Business License Tax 312,243 280,103 90% 288,996 92%
Charges for Services 1,650,354 1,353,611 82% 1,543,263 71% Interest and Investment 127,428 120,942 95% 44,035 -15% Other Revenues 2,530,381 2,362,290 93% 2,430,313 92%
Transfers in 524,180 524,180 100% 511,395 36%
Total Revenues 23,075,847 14,898,085 65% 14,741,017 60% FY 2022-23 FY 2021-22
Table 2: Third Quarter Revenues
64 Expenditures
Table 3 below shows a summary of third quarter budget-to-actual revenues for fiscal years 2022-23 and 2021-22.

General fund expenditures through the third quarter total $17.3 million or 73% of budget. With expenditures under 75% of the budget, opera�ng expenditures are tracking as an�cipated.

Budget Adjustments
Table 4 below shows a summary of council ac�ons with poten�al budgetary effects during the third quarter not reflected in the numbers above.

Revised
Budget
Actuals as of
03/31/2023
% of
Budget
Final
Actuals
Actuals as of
03/31/2022
% of
Budget
Expenditures
Administrative Services 1,403,646 867,218 62% 1,079,066 795,230 74% City Clerk / Communications 1,058,340 668,144 63% 795,855 552,303 69% City Council 232,538 123,809 53% 161,204 106,487 66%
City Managers Office 8,702,739 5,855,454 67% 7,064,942 5,249,665 74% Community Development 1,998,671 1,237,322 62% 1,496,081 1,115,370 75% Public Works 3,626,745 2,204,756 61% 2,912,840 2,021,068 69% Debt Service 704,410 363,075 52% 1,260,001 661,448 52%
Non-Departmental - 52,120 - -
Operating Transfers 1,954,936 1,954,936 100% 1,871,542 1,872,144 100% Capital Transfers 4,015,419 4,015,419 100% 3,447,577 2,747,577 80% Total Expenditures 23,697,444 17,342,253 73% 20,089,107 15,121,291 75% Table 3: Third Quarter Expenditures
FY 2022-23 FY 2021-22
Item Major Funding Source Total Fiscal Impact GF Impact No Budgetary Adjustments During the Third Quarter
Total $ - $ -
Table 3: Budget Adjustments
65 Conclusion
Table 5 below shows an updated summary of general fund balances for the current fiscal year.

Considering revenues and expenditures are generally performing as an�cipated, there is no great concern of fiscal instability for the current fiscal year with the informa�on available. The unassigned funds on June 30, 2023, are es�mated to be $5.1 million. These funds may formally be assigned for use during the budget process for the following fiscal year.

Addi�onally, with the strong fully funded reserves, the City is content regarding financial stability; however, we will con�nue to monitor any changes that may impact the City.

FY2022-23
Revised Budget
Beginning Fund Balance 15,585,153
Revenues 23,075,847
Expenditures (23,697,444)
Budget Adjustments -
Net Change to Fund Balance (621,597)
Ending Fund Balance 14,963,556
General Fund Reserve (5,904,607)
Economic Uncertainty (3,936,405)
Unassigned 5,122,544
Table 5: General Fund Balance Summary
66 67
68