Half Moon Bay City Council
June 20, 2023

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Karen Decker, Economic and Community Vitality Manager Julissa Acosta, Management Analyst
TITLE: AGREEMENT WITH EL CENTRO DE LIBERTAD FOR COMMUNITY RESPONDER

PROGRAM (CARES)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to finalize and execute an agreement with El Centro de Libertad for a Community Responder program, at a cost not-to-exceed $549,944, for a term beginning July 1, 2023, and ending June 30, 2024, including options for up to four annual renewals, conditional upon available funding.

FISCAL IMPACT:

The $549,944 program cost is included in the Recommended Operating Budget for FY 2023-24.

The City has been awarded a grant of $150,000 towards the costs of operating the program, and has applied for an additional $360,000 in grant funding. Staff will continue to seek and pursue funding support for continuation of the program.

STRATEGIC ELEMENT:

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

BACKGROUND:

In Summer 2020, responding to the national movement around police reforms and the local killings of two individuals at the hands of law enforcement, the City Council prioritized community outreach and research related to public safety and law enforcement in Half Moon Bay. The Council also created the Public Safety Subcommittee.

The City launched a significant community outreach effort which ultimately resulted in, among other things, a recommendation to implement a mental health crisis response pilot program in Half Moon Bay. It was determined that the best approach would be to partner with a third-party service provider to provide the services to the community. After gauging interest and accepting proposals from existing non-profit providers already serving the Coast, El Centro de Libertad (El Centro) was selected to work with the City on program design and provide services during the 161

pilot stage, due to their well-designed proposal, existing staff, expertise, and infrastructure, as well as their ability to launch services quickly and effectively.

El Centro and the City launched the CARES program on March 16, 2022, providing a two-person mobile crisis response team with culturally and language competent de-escalation, crisisintervention, motivational interviewing, and suicide prevention tools to work with individuals in crisis. Typical response calls include suicidal ideations, persons under the influence of drugs or alcohol, persons experiencing a mental health crisis, parents calling with concern for an adolescent youth exhibiting unusual behavior, or community members reporting persons in some form of emotional distress.

The CARES team was dispatched in instances where there was no immediate threat of violence, with Sheriff Deputies on standby when a higher level of response is needed. Following initial deescalation and stabilization, the CARES team helped individuals develop a plan of treatment, provided warm handoffs to service providers, and followed up with status checks and resources.

Ongoing collaboration with local and regional non-profits, County Health, the Sheriff’s Office, and the community has been key to the success of the program and the long-term success of clients.

The initial pilot operated 40 hours per week and responded to calls within the City limits of Half Moon Bay, as well as the Moonridge community, with an original budget of $150,000 coming equally from the City and the County of San Mateo. The pilot program was expanded to the entire mid-coast (Devil’s Slide to Moonridge) and extended to seven days per week through a State grant, and additional general fund support continued the pilot through the end of FY 2022-

23. The project was initiated as a one year “pilot stage” program. As part of the process to move beyond the pilot stage, the City released a Request for Qualifications (RFQ) in May inviting qualified non-profit or government agencies to operate mental health crisis response services in Half Moon Bay and the surrounding Coastside communities. El Centro de Libertad was the only qualified responder and is recommended to continue working with the City to offer the CARES program for the next five years.

DISCUSSION:

Program
Staff seeks authority for the City Manager to negotiate and execute an agreement between the City and El Centro de Libertad, which would allow the City to continue providing response to calls that include suicidal ideations, persons under the influence of drugs or alcohol, persons experiencing a mental health crisis, parents calling with concern for an adolescent youth exhibiting unusual behavior, or community members reporting persons in some form of emotional distress through El Centro’s Crisis Assistance Response and Evaluation Services (CARES) program.

The program will operate 7 days per week, from 8:00 a.m. to 6:30 p.m. and provide crises response services to the entire mid-coast. The response team will consist of a two-person team that responds to calls from the Public Safety Communications (911) dispatch center and the Star Vista 162

(988) call center, arriving at the location within 30 minutes or less. An initial assessment upon arrival will determine if the situation requires escalation to other first responders, de-escalation and stabilization, or referral to support services. Once the situation is de-escalated, a plan of action will be developed with full client participation. These plans include motivational interviewing, warm hand-offs where possible, and in some cases referral to psychiatric emergency for immediate observation and treatment. On dispatches involving the homeless population, CARES staff will immediately contact the LifeMoves HOT Team, to request a supplemental response to the location.

Funding Support
In addition to providing direct services, El Centro will work closely with the City to identify and pursue funding to operate the program. Specifically, the organizations will work together on the State’s Community Response Initiative to Strengthen Emergency Systems Act (CRISES Act) grant, which will provide funding for agencies that demonstrate capacity to lead innovative mental health crisis response programs in California. The CRISES Act grant provides funding of a minimum of $250,000 per year and a maximum of $3.5 million through March 31, 2026. City and El Centro staff will continue to collaborate in developing a response to the grant application and will submit it no later than July 14, 2023. Award notifications are tentatively set to be announced on August 31, 2023. If awarded, the Adopted Budget will be revised to include the CRISES Act grant funding as a new revenue which will in turn reduce the allocated City General Funds now requested in the Operating Budget.

Conclusion
The agreement with El Centro de Libertad will enable the City to continue providing a Community Responder program in Half Moon Bay effective July 1, 2023. Staff recommend adoption of the resolution, which would authorize the City Manager to finalize and execute an agreement and continue the program services. Should the resolution be adopted, program updates will be presented to the Public Safety Subcommittee and the Council throughout the duration of the contract.

ATTACHMENTS:

1. Resolution

2. El Centro de Libertad Scope of Work
163
Resolution No. C-2023-

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

CITY MANAGER TO FINALIZE AND EXECUTE AN AGREEMENT WITH EL CENTRO DE LIBERTAD FOR A COMMUNITY RESPONDER PROGRAM, AT A COST NOT-TO-EXCEED $549,944, FOR A TERM BEGINNING JULY 1, 2023, AND ENDING JUNE 30, 2024, INCLUDING OPTIONS FOR UP TO

FOUR ANNUAL RENEWALS, CONDITIONAL UPON AVAILABLE FUNDING WHEREAS, beginning in Summer 2020, the City Council prioritized community outreach and research related to public safety and law enforcement in Half Moon Bay, which resulted in, among other things, a recommendation to pilot a community responder program; and WHEREAS, on March 16, 2022, the Crisis Assistance Response and Evaluation Services (CARES) pilot program, operated by El Centro de Libertad through a contract with the City, began providing crisis response as an alternative to traditional law enforcement response through culturally and language competent de-escalation and stabilization practices; and WHEREAS, additional state and private funding and early program success allowed the CARES program to expand its geographic service area to the entire Mid-Coast from Devil’s Slide to Moonridge and expand its hours and days to seven days per week, with the pilot ending on June 30, 2023; and
WHEREAS, on May 1, 2023, the City issued a Request for Qualifications to select a provider to continue the program and operate mental health crisis response services in Half Moon Bay, and El Centro de Libertad is recommended as the ongoing service provider; and WHEREAS, on June 6, 2023, the City Council approved the City Council Priorities Workplan for Fiscal Years 2023-2025, which under the Public Health, Safety and Emergency Preparation priority includes: Mental Health Support to, “Continue to evolve the program to best address needs and develop efficiencies, identify and secure ongoing funding sources, and outreach and education to support regional expansion of services…”; and WHEREAS, the City and El Centro de Libertad desire to enter into an agreement to continue the Crisis Assistance Response and Evaluation Services (CARES) program for Fiscal Year 2023-24 at a cost not-to-exceed $549,944; and
WHEREAS, the agreement will be automatically renewed annually conditional upon available funding for the following four years.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to finalize and execute an agreement with El Centro de Libertad for a community responder program, at a cost not-to-exceed $549,944, for a term beginning July 1, 2023, and ending June 30, 2024, including options for up to four annual renewals, conditional upon available funding.
164
I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June 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
165
Exhibit A – Scope of Work:
• El Centro de Libertad (CARES) will facilitate the following functions:
o Two 2-person CARES teams will receive calls from the PSC Center, via primary SMCSO Coastside communications channel, and acknowledge receipt of the assignment using the same method. They may also receive calls for assistance from the 988 Call Center, and report their response to PSC over the primary law enforcement channel. The CARES Teams could also receive calls for assistance directly from SMCSO or private parties. o The CARES Teams will respond to the dispatched location within 30 minutes or less of receiving the assignment. In the event of overlapping assignments, CARES will notify the PSC for a prioritization of assignments. The jurisdictional boundaries are the entire Midcoast Region of San Mateo County; defined as all points between the Tom Lantos Tunnels and the Southern City limits of Half Moon Bay, including the Moonridge Community. Responding to areas outside of the boundaries can be done at the request of the SMCSO, practicing a co-responder model.
o Within 5 minutes of arrival at the assignment location, CARES would notify the PSC if any additional response needed from County agencies, based on any perceived danger/threats to the subject of the assignment, or other persons in the immediate vicinity.
o The CARES Team, upon arrival to assignment location, will immediately deploy deescalation techniques, seeking incident stabilization. o When the team arrives at a location and the assessment determines the situation is consistent with the CBO response, de-escalation techniques are immediately used, to ensure a foundation for stabilization.
o Once deescalated, a plan of action is developed with full client participation.  These plans would include appropriate agency referrals, including warm hand offs when possible.
 The use of Motivational Interviewing is essential in this process, ensuring complete buy-in from the client.
 In some cases, these plans would include referral to Psychiatric Emergency for immediate observation and treatment. If possible, in these cases, especially with fully cooperative clients, the CARES Team could facilitate this transport and hand-off. This would be done in the El Centro vehicle, without handcuffs, and with dignity for the client seeking help.
o On dispatches involving the homeless population, the El Centro staff would immediately contact the LifeMoves HOT Team, to request a supplemental response to the location.  LifeMoves is the recognized leader in providing stabilization services to those experiencing homelessness.
 Once the HOT Team arrives to the location, all efforts will be made to assist them in any way needed.
• Staffing
o El Centro would staff our Half Moon Bay office with 4 FTE: all Crisis Intervention Specialist (CIS), two per CARES Team. On each Team, one or both are California State Certified EMTs, or current certification in Basic Life Support via the America Red Cross, and one or both are Spanish speaking.
166
• Hours of operation / Schedule: The two CARES Teams will work a 4/10 schedule, Team 1 Sunday –Wednesday, Team 2 Wednesday – Saturday. CARES will operate from 8:00am to 6:30 PM, 7 days a week. Initially, all San Mateo County recognized holidays will be considered days off for the CARES Teams, this is subject to change at the direction of the City of Half Moon Bay. • Deliverables / Expected outcomes
o Performance measures and data points collected are flexible and done in accordance with the needs of The City of Half Moon Bay and the State of California, as determined by the individual funding streams and directed by City personnel. 167

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Karen Decker, Economic and Community Vitality Manager TITLE: RESOLUTION ASSESSING THE LEVY FOR THE HALF MOON BAY BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2023-24
______________________________________________________________________________ RECOMMENDATION:

Conduct a public hearing, consider any oral or written protests, and adopt a resolution assessing the levy for the Half Moon Bay Business Improvement District for Fiscal Year 2023-24.

FISCAL IMPACT:

There is no fiscal impact to the City associated with this action. Any revenue generated through the BID levy will be transferred to the Business Improvement District.

STRATEGIC ELEMENT:

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

DISCUSSION:

The attached Half Moon Bay Hotel Business Improvement District (“BID”) report was filed with the City Clerk as required by California Streets and Highways Code Section 36533. The report was prepared by the Half Moon Bay Chamber of Commerce acting as the Managing Agency for the hotels in the BID.

A Resolution of Intention adopting the annual report and to continue the BID program and levy the annual assessments for Fiscal Year 2023-24 was adopted by the City Council on May 16, 2023.

This action recommends keeping the levy rate at $1 per rented room night. The Public Hearing date was set for June 20, 2023. Written and oral protests to the levy of the annual assessment may be made at the Public Hearing in the form and manner prescribed in Sections 36525 and 36526 of the California Streets and Highway Code up until the close of the public hearing.

ATTACHMENTS:

1. Resolution assessing the levy for the Half Moon Bay Business Improvement District for Fiscal Year 2023-24

2. Half Moon Bay Business Improvement District 2022 Annual Report 168
RESOLUTION NO. C-2023-__

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

TO CONTINUE THE BASIS FOR AND LEVY THE ASSESSMENT FOR THE HALF MOON BAY BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2023-24
WHEREAS, the Parking and Business Improvement Area Law of 1989 Section 36500 et seq. of the California Streets and Highway Code authorizes cities to establish and renew business improvement areas for the purpose of promoting tourism; and WHEREAS, the City Council approved Resolution C-10-04 on April 6, 2004, to establish the Half Moon Bay Hotel Business Improvement District (BID) and on June 15, 2004, approved an Ordinance establishing the Half Moon Bay Hotel Business Improvement District; and WHEREAS, in accordance with the requirements of Health and Safety Code Section 36530 and Half Moon Bay Municipal Code Chapter 3.100, the City Council appointed the Half Moon Bay Coastside Chamber of Commerce and Visitors’ Bureau as the managing agency to provide oversight and recommendations regarding the use of the assessment funds; and WHEREAS, the Half Moon Bay Municipal Code and the Parking and Business Improvement Area Law requires that the managing agency prepare and submit an annual report stating the proposed changes, improvements and activities for the fiscal year; and WHEREAS, on April 27, 2023, the Chamber submitted the 2022 Annual Report; and WHEREAS, on May 16, 2023, the City Council adopted a resolution approving the Report and declaring intention to continue the BID program and assessments for Fiscal Year 2023-24 following a public hearing on June 20, 2023, at 7:00 p.m.; and WHEREAS, the City Clerk gave notice of the public hearing by mailing written notice to all hotels within the BID and by publishing in a newspaper of general circulation at least seven days before the public as required by California Streets and Highways Code section 36534; and WHEREAS, at the public hearing, the City Council heard and considered all protests against the Fiscal Year 2022-23 levy of assessments for the BID, and the rules and procedures used in receiving and considering protests complied with those set forth in the California Streets and Highways Code Sections 36524, 36525, 36534 and 36535; and WHEREAS, the City Council desires to adopt this resolution to continue the program and assessments as levied without change for Fiscal Year 2023-24. 169
NOW, THEREFORE, BE IT RESOLVED THAT by the City Council of the City of Half Moon Bay hereby resolves:

Section 1. The Annual Report is on file with the City Clerk and contains a full and detailed description of activities provided in 2022. No changes to the District boundaries are proposed and there are no changes to the assessment proposed.

Section 2. The assessment levied by the BID shall be used for activities and programs promoting lodging within the district and administer marketing programs that increase overnight lodging.

Section 3. The City hereby levies the assessment for Fiscal Year 2023-24 in the amount of $1 per rented room night on all hotels within the BID. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June 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
170
2022 ANNUAL REPORT

HALF MOON BAY

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

Articles, digital, and print ads were heavily focused on nearby areas such as the inner Bay Area and San Jose. These areas comprise the largest segment of travelers we have seen since the onset of the pandemic.

Articles Written about Half Moon Bay
Travel Writers Hosted
All Users
Average Sessions Per User
Total Page Views
Corporate meetings and group sales were halted in March 2020 with the onset of the pandemic. Corporate travel started to pick up in 2022 but not by a large amount. The BID will bring back a Corporate Group Coordinator in 2023 as the inquiries increase.

PRIORITIES & OUTCOMES

LEISURE TRAVEL
Create opportunities and buzz around HMB as a “Drive to” destination.

GENERATE MEDIA
Proactively pitch and respond to the media.

Coordinate and host travel writers.

INCREASE WEBSITE TRAFFIC
Increase traffic to the ‘Visit’ website with new
content and paid ads.

CORPORATE GROUPS
As Corporate Groups begin to rebound, be prepared with a rapid response. 58 8
37 4
2022 2020
48 7
2021
421,521

1.11 848,416
425,820

1.22 828,992
2022 2020
447,510

1.22 889,377
2021
171
2022 2021 2020

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
20,000
15,000
10,000
5,000
0 2022 ANNUAL REPORT
CONTRIBUTIONS Each BID Hotel Participant pays $1 per rented room night.

Aristocrat
Beach House Half Moon Bay
Cameron's Inn
Cypress Inn on Miramar Beach
Half Moon Bay Inn
Half Moon Bay Lodge
Harbor View Inn
Inn at Mavericks
Mill Rose Inn & Garden
Miramar Inn & Suites
Nantucket Whale Inn
Ocean View Inn
Oceano Hotel & Spa
Quality Inn
Ritz Carlton
San Benito House
Seal Cove Inn
Zaballa House
$6,890
$15,761
$146
$4,950
$1,815
$18,077
$6,041
$1,948
$437
$4,845
$1,668
$2,170
$22,070
$12,621
$60,454
$0
$1,589
$161
$9,200
$11,470
$74
$4,273
$1,135
$12,038
$4,017
$1,340
$541
$3,323
$151
$261
$12,836
$5,857
$33,504
$222
$1,910
$571
2022 2020
$8,979
$15,505
$148
$5,431
$1,808
$16,979
$2,551
$1,640
$805
$4,373
$1,109
$774
$21,160
$9,903
$45,604
$71
$0
$378
2021

BOOKED ROOM NIGHTS

OCCUPANCY
Total Available
Rooms a Night
739
Total Available
Room Nights
269,735
Total Occupied
Room Nights
161,643
60% Occupancy
51% in 2021
37% in 2020
TOT Revenue
$10,140,861
Est. Economic
Impact
$8.4 Billion
172

ITEM CARRYOVER INCOME EXPENSE NET
Assessments $161,643 $0 $161,643
Management $40,411 -$40,411
Software $610 -$610
Marketing Firm $45,000 -$45,000
Website $14,000 -$14,000
Digital Ads $18,728 $30,000 $22,906 $25,822
Print Ads $2,500 -$2,500
PR Firm $54,000 -$54,000
Media
Aquisition
$21,094 $9,000 $9,286 $20,808
Corp. Group
Coordinator
$5,559 $5,000 $0 $10,559
Corp. Group
Aquasitions
$0 $0
TOTALS $45,381 $205,643 $188,713 $62,311
RESERVE $21,587 $0 $0 $21,587
2022 ANNUAL REPORT
BUDGET
173

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Catherine Engberg, City Attorney
Maz Bozorginia, Public Works Director
TITLE: ACQUISITION OF ACCESS LICENSE AND EASEMENT LOCATED AT 20 STONE PINE

ROAD FOR THE CARTER PARK IMPROVEMENT PROJECT
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute the Agreement to Acquire Temporary Construction Access License and Permanent Pathway Easement over real property owned by Bahram Abolmoluki and Zohreh Abolmoluki, located at 20 Stone Pine Road in Half Moon Bay California (San Mateo County APN: 056-391-010), including 1) a nonexclusive 12-month Temporary Construction Access License, 2) an exclusive 12-month Temporary Construction Access License, and 3) a Permanent Pathway Easement (collectively, Access).

FISCAL IMPACT:

The cost to acquire the Access is $273,150, which is included in the John L. Carter Park Improvement Project in the Recommended Capital Improvement Program Budget for FY 2023-

24. STRATEGIC ELEMENT:

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

BACKGROUND:

The John L. Carter Park Improvement Project will redevelop and improve Carter Park, which is located at 10 Stone Pine Road in downtown Half Moon Bay. The City’s 2019 Parks Master Plan identified the park as an area of potential increased community recreation and activities. The City initiated the Project in response to these recommendations.

The Project, which is primarily funded through a State grant of $4.75 million, will add many improvements including a new amphitheater, a stage with storage space and changing room, children’s play area, picnic area, restroom and concession stand building, park access improvements, a nature trail, landscaping, lighting, and utility improvements. Additionally, 174
following the winter storms and historic rainfall in the autumn and winter of 2022 and 2023, City staff further modified the Project to increase overall resiliency and minimize flooding impacts to Park improvements. These modifications, incorporated into the Project design, include redesigning the stage area to include more flood resilient construction materials and methods, changing low-lying surface areas to natural materials better withstand flooding conditions, and relocation of storage facilities and dry utilities in the lower areas of the park.

On December 8, 2020, the Planning Commission approved environmental review, adopted a mitigated negative declaration (MND), and approved an application for a Coastal development Permit, Use Permit, Architectural Review, and Parking Exception, to allow the renovation of Carter Park.

DISCUSSION:

The property at 20 Stone Pine Road, which houses a shopping center including several restaurants and other small businesses, lies between Carter Park and Stone Pine Road. In order to complete construction of the Project, the City requires a non-exclusive Temporary Construction Access License to permit the City and its contactors ingress and egress through a parking lot on the Property, an exclusive Temporary Construction Access License over several parking spaces on the Property to serve as a staging area for construction equipment and materials, and a Permanent Pathway Easement on an existing paved pathway for public access to Carter Park. Bahram and Zohreh Abolmoluki, as Trustees of the Abomoluki Living Trust dated May 25, 2018, own the Property. City staff and the owners have engaged in negotiations for the Access for several months, and recently reached terms on the attached agreement.

Acquisition of the Access is necessary for the Project, which will increase opportunities for recreation and community activities in Half Moon Bay and improve an underutilized park. The Permanent Pathway Easement will secure unimpeded public access to the park over an existing paved pathway. Furthermore, the Carter Park improvement project will be carried out in a manner that works to not impede use of the Property by the owners, their tenants, or other users of the Property.

ATTACHMENTS:

1. Resolution

2. Draft Agreement
175
Resolution No. C-2023-___

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT TO ACQUIRE

TEMPORARY CONSTRUCTION ACCESS LICENSE AND PERMANENT PATHWAY EASEMENT OVER

REAL PROPERTY OWNED BY BAHRAM ABOLMOLUKI AND ZOHREH ABOLMOLUKI, LOCATED AT 20 STONE PINE ROAD IN HALF MOON BAY CALIFORNIA (SAN MATEO COUNTY APN 056-391- 010), INCLUDING 1) A NONEXCLUSIVE 12-MONTH TEMPORARY CONSTRUCTION ACCESS LICENSE, 2) AN EXCLUSIVE 12-MONTH TEMPORARY CONSTRUCTION ACCESS LICENSE, AND 3)

A PERMANENT PATHWAY EASEMENT
WHEREAS, the City Council designated the John L. Carter Park Improvement Project as a priority in the City’s Fiscal Year 2018-19 budget in response to community interest and recommendations from the City’s Parks and Recreation Commission; and WHEREAS, the project proposes numerous enhancements to the quality and utility of the park including, but not limited to, a new amphitheater, children’s play area, and picnic area; and
WHEREAS, on December 8, 2020, the City’s Planning Commission approved the environmental review for the Project, adopted a mitigated negative declaration, and approved an application for a Coastal Development Permit, Use Permit, Architectural Review, and Parking Exception; and
WHEREAS, 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; and
WHEREAS, the City is seeking to acquire temporary access and a permanent easement over real property adjacent to park in order to improve the quality of the park and secure unimpeded public access to it over an existing paved pathway; and WHEREAS, Bahram Abolmoluki and Zohreh Abolmoluki, as trustees of the Abolmoluki Living Trust dated May 25, 2018, own APN 056-391-010, more commonly known as 20 Stone Pine Road, Half Moon Bay, California and located adjacent to Carter Park; and WHEREAS, acquisition of a 12-month nonexclusive Temporary Construction Access License, a 12-month exclusive Temporary Construction License, and a Permanent Pathway Easement on the Property are necessary to implement the Project; and WHEREAS, more specifically, the acquisition of the temporary construction access will allow for the transport and storage of necessary construction equipment and materials during construction of the project, and the permanent easement will secure public access to the park along an existing paved pathway; and
WHEREAS, the City and the owners have negotiated an agreement whereby the City will acquire the access license and easement for $$273,150.
176
WHEREAS, the City Manager recommends that the Council approve the City’s purchase of the access license and easement, to implement the Carter Park Project and secure public access to the newly improved park.

NOW, THEREFORE BE IT RESOLVED THAT the City Council authorizes the City Manager to execute an agreement to acquire the Easements for a total of $$273,150, and take all other actions reasonably necessary to effectuate the purchase.

OWNERS: Bahram Abolmoluki and Zohreh Abolmoluki, as Trustees of the Abolmoluki Living Trust, dated May 25, 2018
PARCEL NUMBER: San Mateo County APN: 056-391-010
I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June 2023, by the City Council of Half Moon Bay by the following affirmative vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:

Jessica Blair, City Clerk Deborah Penrose, Mayor
177

DRAFT AGREEMENT
by and between
BAHRAM AND ZOHREH ABOLMOLUKI, as Trustees of the ABOLMOLUKI LIVING TRUST DATED MAY 25, 2018
as Seller
and

CITY OF HALF MOON BAY,
as Buyer
For the purchase and sale of Temporary Construction Access License and Permanent Pathway Easement over
APN 056-391-010
Half Moon Bay, California
_______ __, 2023
178
DRAFT

AGREEMENT
(APN: 056-391-010, HALF MOON BAY, CALIFORNIA)
THIS AGREEMENT (“Agreement”), dated for reference purposes only as of _______ __, 2023, is by and between BAHRAM ABOLMOLUKI AND ZOHREH ABOLMOLUKI, as Trustees of the ABOLMOLUKI LIVING TRUST DATED MAY 25, 2018 (“Seller”), and the CITY OF HALF MOON BAY, a municipal corporation formed under the laws of the State of California (“City”). Seller and City agree as follows:

1. PURCHASE AND SALE

1.1 Temporary Construction Access License
Seller agrees to sell and convey to City, and City agrees to purchase from Seller, subject to the following terms, covenants, and conditions, a temporary construction access license (“License”) for use of and access over 20 Stone Pine Road in the City of Half Moon Bay, California (APN 056-391-010) (“Property”) for the renovation of Carter Park (“Project”). [a] The License includes the right of ingress and egress through the Property, together with the full right of the City and its agents to enter the Property with machinery, trucks, materials, tools, and other equipment required to complete the Project and store equipment and materials.

The area of the License that is nonexclusive is described in Exhibit A and identified in Exhibit B (“Nonexclusive Area”), both attached hereto. The area of the License that is exclusive is described in Exhibit C and identified in Exhibit D (“Exclusive Area”), both attached hereto. The City will use the Nonexclusive Area for access to Carter Park for the Project. The City will not store equipment or materials in the Nonexclusive Area. The City will use the Exclusive Area for access to Carter Park for the Project and to store materials and equipment. [b] The term of the License (“Term”) will begin on _______ __, 2023, and expire on the earlier of June 30, 2024, or the Restoration of the Property by the City as defined in Section

1.1[k].
[c] In using the License, the City will comply with all applicable laws, ordinances, and regulations, including but not limited to all applicable regulatory, environmental, and safety requirements at the City’s sole cost and expense.
[d] The City will not materially interfere with the operation and activities of Seller and Seller’s tenants, invitees, or other users of the Property authorized by Seller, other than in the exclusive area of the License. The City shall use and follow procedures on the Property that will result in the least damage and inconvenience to Seller and Seller’s tenants, invitees, or other users of the Property authorized by Seller.
[e] The City will not permit construction vehicles to park on the Property during the Term.
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[f] The City will complete most deliveries for the Project prior to 11 am. Deliveries after 11 am will be limited to a single vehicle trip.
[g] The City will give Seller and Seller’s tenants a minimum of 72 hours’ notice of a concrete pour or debris removal. The City will not leave debris on the Property, including the area of the License (“License Area”).
[h] The City will keep construction noise within the limits provided in the Project plans.

The City will give Seller’s tenants advance notice of major noise-producing activities. [i] The City will maintain dust control during ground disturbing activities, including watering, within limits provided in the Project plans, to ensure that no airborne dust travels to the Property.
[j] The City will ensure that driveway access to the Property remains open at all times during the Term.
[k] The City shall be responsible for any damage to the Property or to the property of third parties resulting from the City’s use of the License. The City will conduct pre- and postinspection surveys of all wet utilities. At Seller’s option, the inspections will be conducted in the presence of Seller. The inspections will include visual investigation of valves, utility access holes, and above-ground facilities to establish existing and post construction conditions.

Additional testing measures may include pressure testing and Closed Caption TV. At the completion of the Term, the City will promptly repair, restore, and replace the Property to its original or better condition, including, but not limited to roads, utilities, irrigation system, hardscape, landscaping, buildings, and fences that may be altered, damaged, or destroyed by the City during the Term (“Restoration”). For alteration, damage, or destruction of the Property that does not require prompt and immediate repair, restoration, or replacement, the City will complete such repairs, restoration, or replacement within 30 days after completion of the Project. Not later than 30 days prior to the expected completion date of the Project, the City and at Seller’s option, Seller, will inspect the Property and prepare a tentative punch list of Restoration required. Within five business days after completion of Restoration, the City and at Seller’s option, Seller, will review the Restoration to ensure that the Restoration has been completed as agreed. At Seller’s request, the City will provide photos, videos, and other documentation of the existing condition of the License Area before the City starts construction of the Project. [l] The City will have the right to remove trees and shrubs in the License Area that may materially interfere with access to or completion of the Project. The City will replace any such trees and shrubs with drought-tolerant trees and shrubs as part of Restoration. At Seller’s option, Seller may approve the types of replacement trees and shrubs in advance of the start of construction for the Project.
[m] The City and/or its General Contractor shall provide current certificates or other proof of insurance to Seller prior to the start of construction of the Project. [n] The City will save, defend, hold harmless, and indemnify Seller, its officers, tenants, lenders, employees, agents, invitees, and guests from any and all liability, loss, costs, or obligations on account of, or arising out of, any injury or losses caused or claimed to be caused 180
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by the City’s use of the License, however occurring, other than injury or losses caused by the willful or negligent acts or omissions of Seller, its officers, tenants, lenders, employees, agents, invitees, and guests.
[o] Seller has not made and makes no warranties about the License Area and its suitability for the City’s purposes, nor does Seller warrant any of any conditions of the License Area or the Property during the Term.
[p] The City shall not cause or suffer liens of any kind to be placed against the Property or Seller. The City shall promptly, but no later than 30 days after a lien caused by the City’s use of the License is recorded against the Property, take appropriate action to expunge, remove, satisfy, or bond any claim of lien by any person against the Property or Seller.

1.2 Permanent Pathway Easement
Seller agrees to sell and convey to City, and City agrees to purchase from Seller, subject to the following terms, covenants, and conditions, a permanent, non-exclusive, easement on an existing paved pathway for access to Carter Park (“Pathway Easement”) for pedestrians and nonmotorized transport. The Pathway Easement is described in Exhibit E and identified in Exhibit F, both attached hereto. The Pathway Easement will be joined with the existing paved pathway on City Property to ensure unimpeded public access to Carter Park.

2. CONSIDERATION
The City shall pay to Seller, in cash, the amount of One Hundred Fifty-Nine Thousand Dollars and No Cents ($159,000) for the License and One Hundred Fourteen Thousand One Hundred Fifty Dollars and No Cents ($114,150) for the Pathway Easement, totaling Two Hundred Seventy Three Thousand One Hundred Fifty Dollars and No Cents ($273,150) (“Purchase Price”).

3. TITLE TO THE PATHWAY EASEMENT

3.1 Conveyance of Title to the Pathway Easement
At the Closing (as defined in Section 5.3) Seller shall convey to City, or its nominee, a grant of permanent easement for the Pathway Easement by duly executed and acknowledged grant deed in the form attached hereto as Exhibit G (“Deed”), subject to the Accepted Conditions of Title (as defined in Section 3.2 [Title Insurance]).

3.2 Title Insurance
Delivery of title in accordance with Section 3.1 shall be evidenced by the commitment of Chicago Title Company (“Title Company”) to issue to City, or its nominee, a CLTA owner’s policy of title insurance (or an ALTA extended coverage policy if the Survey (defined below) is obtained by City) (“Title Policy”) in the amount of One Hundred Fourteen Thousand One Hundred Fifty Dollars and No Cents ($114,150), insuring fee simple title to the Pathway Easement in City, or its nominee, free of the liens of any and all deeds of trust, mortgages, assignments of rents, financing statements, creditors’ claims, rights of tenants or other occupants, and all other 181
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exceptions, liens, and encumbrances except solely for the following (such exceptions approved by City are collectively referred to herein as the “Accepted Conditions of Title”): (i) the lien of real property taxes, not yet due or payable, provided City shall be shown as exempt from such taxes in the Title Policy; and (ii) exception numbers 1, 4, 5, 6, 7, 8, 9, 11, 14, 15, as listed in the preliminary title reports from Chicago Title Company dated December 20, 2021, Order No. 15608871-156- TJK-JM (APN 056-128-110).

4. CONDITIONS TO CLOSING

4.1 City’s Conditions to Closing
The following are conditions precedent to City’s obligation to purchase the Easements (collectively, “City’s Conditions Precedent”).
[a] Title Company shall be committed at the Closing to issue to City the Title Policy (or Title Policies) as provided in Section 3.2 [Title Insurance]. [b] Seller shall have delivered the items described in Section 5.4 below [Seller’s Delivery of Documents] on or before the Closing.
[c] Approval of this Agreement and the purchase of the Easements by the Half Moon Bay City Council.
[d] Compliance with California Government Code Section 65402.

If any of City's Conditions Precedent are not satisfied within the time periods set forth above, then City shall have the right in its sole discretion either to waive in writing the City's Condition Precedent in question and proceed with the purchase or, in the alternative, terminate this Agreement without charge, penalty, or further liability or obligation to Seller.

4.2 Seller’s Conditions to Closing
The following are conditions precedent to Seller’s obligation to sell the Easements (collectively, “Seller’s Conditions Precedent”):
[a] City shall have delivered the items described in Section 5.5 below [City’s Delivery of Documents and Funds] on or before the Closing.

If any of Seller’s Conditions Precedent are not satisfied, Seller shall have the right in its sole discretion either to waive in writing Seller’s Condition Precedent in question and proceed with the sale or, in the alternative, terminate this Agreement without charge, penalty, or further liability or obligation to the City.

4.3 Cooperation with City
Seller shall cooperate with the City and do all commercially reasonable acts as may be reasonably requested by the City with regard to the fulfillment of the City’s Conditions Precedent, at no cost to Seller.
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4.4 Waiver
No waiver by either party at any time of any breach of any provision of this Agreement shall be deemed a waiver or a breach of any other provision herein or a consent to any subsequent breach of the same or another provision. If any action by any party shall require the consent or approval of another party, such consent or approval of such action on any one occasion shall not be deemed a consent to or approval of such action on any subsequent occasion or a consent to or approval of any other action.

5. ESCROW AND CLOSING

5.1 Opening of Escrow
On or before the Effective Date (as defined in Section 9.10), the parties shall open escrow by depositing an executed counterpart of this Agreement with Title Company, and this Agreement shall serve as instructionsto Title Company as the escrow holder for consummation of the purchase and sale contemplated hereby. Seller and the City agree to execute such additional or supplementary instructions as may be appropriate to enable the escrow holder to comply with the terms of this Agreement and close the transaction; provided, however, that in the event of any conflict between the provisions of this Agreement and any additional supplementary instructions not executed by both parties, the terms of this Agreement shall control.

5.2 Deposit of Funds into Escrow
The City will deposit funds into the Escrow (“Fund Deposit”) in an amount as needed to comply with the provisions of Section 5.5[c] below.

5.3 Closing Dates
The consummation of the acquisition and conveyance of the Easements contemplated hereby (the “Closing”) shall be held and delivery of all items to be made at the Closing under the terms of this Agreement shall be made at the offices of Title Company located at One Embarcadero Center, Suite 250, San Francisco California 94111, on or before the fifteenth (15th) calendar day following the date of the Fund Deposit (“Closing Date”), subject to the provisions of Section 4.1 [City’s Conditions to Closing] and Section 4.2 [Seller’s Conditions to Closing]. The Closing Date may not be extended without the prior written approval of both Seller and the City, except as otherwise expressly provided in this Agreement.

5.4 Seller’s Delivery of Documents
At or before the Closing, Seller shall deliver into escrow, the following:
[a] signed and notarized grant of Pathway Easement;
[b] signed copy of this Agreement;
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[c] properly executed affidavit pursuant to section 1445(b)(2) of the Federal Tax Code in the form attached hereto as Exhibit H, and on which City is entitled to rely, that Seller is not a “foreign person” within the meaning of section 1445(f)(3) of the Federal Tax Code; [d] properly executed California Franchise Tax Board Form 590 certifying that Seller is a California resident if Seller is an individual, or Seller has a permanent place of business in California or is qualified to do business in California if Seller is a corporation, or other evidence satisfactory to City that Seller is exempt from the withholding requirements of sections 18662 and 26131 of the State Tax Code;
[e] such resolutions, authorizations, or other documents or agreements relating to Seller as the Title Company may reasonably require demonstrating the authority of Seller to enter into this Agreement and consummate the transactions contemplated hereby, and such proof of the power and authority of the individuals executing any documents or other instruments on behalf of Seller to act for and bind Seller; and
[f] closing statement in form and content satisfactory to City and Seller; and

5.5 City’s Delivery of Documents and Funds
At or before the Closing, the City shall deliver into escrow the following:
[a] acceptance of the Pathway Easement executed by the City Council, or a designee; [b] closing statement in form and content satisfactory to City and Seller; and [c] the Fund Deposit, including, but not limited to, a cashier's check, government warrant, or confirmed wire transfer of certified funds in the amount of the Purchase Price, plus such additional amounts as are required from Buyer for the Closing, as provided in Section 6.2 below.

6. EXPENSES AND TAXES

6.1 Closing Costs
The City shall pay the cost of the premium for the Title Policy and the cost of the endorsements thereto, any escrow and recording fees, and any transfer taxes. Seller shall be responsible for all costs incurred in connection with the prepayment or satisfaction of any loan, bond or other indebtedness secured by the Property. Seller shall also pay any costs, including recording and notary fees, associated with perfecting Seller's ownership sufficient to transfer title.

Any other costs and charges of the escrow for the sale not otherwise provided for in this Section or elsewhere in this Agreement shall be paid by the City. 184
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6.2 Preliminary Closing Adjustment
The Title Company shall prepare a preliminary Closing adjustment on the basis of any apportionments or adjustments to be made based on payments or expenses, and shall deliver such computation to Seller and Buyer prior to the Closing.

6.3 Survival
The provisions of this Section shall survive the Closing.

7. REPRESENTATIONS AND WARRANTIES

7.1 Representations and Warranties of Seller
Seller represents and warrants to and covenants with the City as follows:
[a] To Seller’s Knowledge, as of the Effective Date, and as of the Closing Date, Seller has received no formal written notice of any currently outstanding violations of any federal, state, county, or municipal law, ordinance, order, regulation, or requirement affecting the Property. [b] To Seller’s Knowledge, Seller has received no formal written notice of any condemnation, either instituted or planned to be instituted by any governmental or quasigovernmental agency other than the City. [c] To Seller’s Knowledge, Seller has received no formal written notice of any litigation pending against Seller or that affect the use or operation of the Property. [d] Seller has not granted any option or right of first refusal or first opportunity to any third party to acquire any interest in any of the Property. [e] Seller has received no written notice, and to Seller’s Knowledge, that the Property is in violation of any federal, state and local laws, ordinances and regulations applicable to the Property with respect to hazardous or toxic substances or industrial hygiene. [f] Seller is not a “foreign person” within the meaning of section 1445(f)(3) of the Federal Tax Code.

As used in this Section 7, the term “to Seller's Knowledge” means the actual present knowledge of Seller, without any duty of inquiry or investigation either express or implied. As stated in Section 1.1 above, except for the representations and warranties provided herein, the Property shall be sold “as is” with all faults, whether known or unknown.

8. POSSESSION

8.1 Possession - Following the Closing, possession of the Easements shall be delivered to the City.
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8. GENERAL PROVISIONS

8.1 Notices
Any notice, consent, or approval required or permitted to be given under this Agreement shall be in writing and shall be addressed as follows:

City: City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Attn: Matthew Chidester, City Manager
Telephone: (650) 726-8270
Email: [email protected]
Seller: Bahram and Zohreh Abolmoluki
3312 Melendy Drive
San Carlos, CA 94070
Email: [email protected]
or to such other address as either party may from time to time specify in writing to the other upon five (5) days’ prior written notice in the manner provided above. Any notice given by personal delivery or delivery service will be deemed effective on the date of receipted delivery, upon refusal to accept delivery or when delivery is first attempted but cannot be made due to a change of address for which no notice was given. Any notice sent by facsimile shall be deemed given by the date reflected by the facsimile confirmation receipt. Any notice sent by email shall be deemed given by the date and time reflected in the email. Any notice that may be given by any party in connection with this Agreement may be given by such party’s attorney.

8.2 Brokers and Finders
City has had no contact or dealings regarding the Easements, or any communication in connection with the subject matter of this transaction, through any licensed real estate broker or other person who could claim a right to a commission or finder’s fee in connection with the purchase and sale contemplated herein. City is not aware that Seller has listed the Easements for sale through a licensed real estate broker. Seller shall be responsible, out of Seller’s proceeds, for compensating any licensed real estate broker or other person who could claim a right to a commission or finder’s fee in connection with the purchase and sale contemplated herein.

8.3 Successors and Assigns
This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, heirs, administrators and assigns.

8.4 Amendments
Except as otherwise provided herein, this Agreement may be amended or modified only by a written instrument executed by the City and Seller.
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8.5 Continuation and Survival of Representations and Warranties All representations and warranties by the respective parties contained herein or made in writing pursuant to this Agreement are intended to be, and shall remain, true and correct as of the Closing, shall be deemed to be material, and, together with all conditions, covenants and indemnities made by the respective parties contained herein or made in writing pursuant to this Agreement (except as otherwise expressly limited or expanded by the terms of this Agreement), shall survive the execution and delivery of this Agreement and the Closing, or, to the extent the context requires, beyond any termination of this Agreement, provided all representations and warranties set forth in Section 7.1 shall survive for a period of eighteen (18) months following the Closing Date. All statements contained in any certificate or other instrument delivered at any time by or on behalf of Seller in conjunction with the transaction contemplated hereby shall constitute representations and warranties hereunder.

8.6 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action to enforce the terms of this Agreement shall be filed in a court of competent jurisdiction in San Mateo County, California.

8.7 Merger of Prior Agreements
The parties intend that this Agreement (including all of the attached exhibits and schedules, which are incorporated into this Agreement by reference) shall be the final expression of their agreement with respect to the subject matter hereof and may not be contradicted by evidence of any prior or contemporaneous oral or written agreements or understandings. The parties further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever (including, without limitation, prior drafts or changes therefrom) may be introduced in any judicial, administrative or other legal proceeding involving this Agreement.

8.8 Non-Liability of City Officials, Employees and Agents Notwithstanding anything to the contrary in this Agreement, no City Council member, officer, employee, or agent of the City or any of its member agencies shall be personally liable to Seller, its successors and assigns, in the event of any default or breach by the City or for any amount which may become due to Seller, its successors and assigns, or for any obligation of the City under this Agreement.

8.9 Counterparts
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

8.10 Effective Date
As used herein, the term “Effective Date” shall mean the date this Agreement is executed by both parties hereto.
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The parties have duly executed this Agreement as of the respective dates written below.

SELLER: BAHRAM ABOLMOLUKI, as Trustee of the

ABOLMOLUKI LIVING TRUST DATED
MAY 25, 2018
_________________________________
Date:_____________________________
ZOHREH ABOLMOLUKI, as Trustee of the

ABOLMOLUKI LIVING TRUST DATED
MAY 25, 2018
_________________________________
Date:_____________________________
BUYER: CITY OF HALF MOON BAY, a California
municipal corporation
By:

Matthew Chidester, City Manager
Date: _______________________________
APPROVED AS TO FORM:

By:

Catherine C. Engberg, City Attorney
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Title Company agrees to act as escrow holder in accordance with the terms of this Agreement and act as the Reporting Person under section 6045(e) of the United States Internal Revenue Code of 1986 and the regulations promulgated thereunder, which require an information return to be made to the United States Internal Revenue Service, and a statement to be furnished to Seller, in connection with this transaction. Title Company’s failure to execute below shall not invalidate this Agreement between the City and Seller.

TITLE COMPANY: CHICAGO TITLE COMPANY
By:

Its:

Date:
189

EXHIBIT A

LEGAL DESCRIPTION

CARTER PARK TEMPORARY NON-EXCLUSIVE LICENSE FOR

CONSTRUCTION /TRUCKING/EMERGENCY VEHICLE ACCESS

HALF MOON BAY, CALIFORNIA
The land referred to is situated in the City of Half Moon Bay, County of San Mateo, State of California and is described as follows:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, North 66°42'30" West, 1.94 feet to the TRUE POINT OF BEGINNING, thence counterclockwise the following courses and distances:

North 66°42'30" West, 24.93 feet; thence,
South 23°20'55" West, 45.34 feet; thence,
South 68°07'31" West, 246.27 feet; thence,
South 19°59'42" East, 42.49 feet; thence,
North 67°04'13" West, 1.55 feet; thence,
Along a tangent curve to the left, having a radius of 18 feet, length of 13.99 feet, and a delta angle of 44°32'36"; thence,
South 68°23'11" West, 7.01 feet; thence,
South 86°41'40" East, 21.57 feet; thence,
Along a tangent curve to the right, having a radius of 10 feet, length of 3.37 feet, and a delta angle of 19°19'50"; thence,
South 67°21'50" East, 46.85 feet; thence,
Along a tangent curve to the left, having a radius of 20 feet, length of 8.39 feet, and a delta angle of 24°02'12"; thence,
North 88°35'58" East, 0.99 feet; thence,
Along a tangent curve to the right, having a radius of 18 feet, length of 15.26 feet, and a delta angle of 48°33'34"; thence,
South 42°50'28" East, 1.44 feet; thence,
190
Along a tangent curve to the left, having a radius of 8 feet, length of 9.45 feet, and a delta angle of 67°42'20"; thence,
North 69°27'12" East, 3.75 feet; thence,
Along a tangent curve to the right, having a radius of 100 feet, length of 14.94 feet, and a delta angle of 8°33'33"; thence,
North 78°00'44" East, 4.97 feet; thence,
Along a tangent curve to the left, having a radius of 5 feet, length of 4.59 feet, and a delta angle of 52°37'24"; thence,
North 25°23'21" East, 2.88 feet; thence,
South 71°26'45" West, 32.56 feet; thence,
North 19°13'21" West, 17.06 feet; thence,
North 71°18'25" East, 73.73 feet; thence,
North 70°41'38" East, 45.53 feet; thence,
South 18°40'26" East, 17.66 feet; thence,
South 71°19'34" West, 50.55 feet; thence,
South 18°58'42" East, 4.61 feet; thence,
North 68°00'00" East, 13.81 feet; thence,
Along a tangent curve to the right, having a radius of 115 feet, length of 107.17 feet, and a delta angle of 53°23'39"; thence,
South 58°36'21" East, 60.61 feet; thence,
Along a tangent curve to the right, having a radius of 180 feet, length of 2.46 feet, and a delta angle of 0°46'55"; thence,
North 22°30'01" West, 15.31 feet; thence,
North 66°46'14" West, 27.79 feet; thence,
North 21°29'58" East, 20.13 feet; thence,
North 33°56'49" West, 38.98 feet; thence,
North 66°46'32" West, 63.90 feet; thence,
North 23°13'32" East, 121.30 feet to the TRUE POINT OF BEGINNING.

Excepting therefrom the following two areas:

Exception Area 1:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
191
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, North 66°42'30" West, 1.94 feet; thence,
South 23°13'32" West, 56.86 feet; thence,
South 69°52'20" West, 32.81 feet; to TRUE POINT OF BEGINNING of Exception Area 1; thence counterclockwise the following courses and distances:

South 69°52'20" West, 204.58 feet; thence,
South 19°59'42" East, 14.65 feet; thence,
South 66°57'10" East, 35.14 feet; thence,
North 69°31'34" East, 140.85 feet; thence,
North 25°05'34" East, 53.73 feet to the TRUE POINT OF BEGINNING of Exception Area 1.

Exception Area 2:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, North 66°42'30" West, 1.94 feet; thence,
South 23°13'32" West, 121.30 feet; thence,
South 05°05'19" West, 22.23 feet; to TRUE POINT OF BEGINNING of Exception Area 2; thence clockwise the following courses and distances:

South 66°46'14" East, 63.30 feet; thence,
South 23°13'30" West, 20.12 feet; thence,
North 66°46'14" West, 63.21 feet; thence,
North 22°57'54" East, 20.12 feet to the TRUE POINT OF BEGINNING of Exception Area 2.

Non-Exclusive License Area containing 17,382 square feet, more or less. 192

EXHIBIT B
193

EXHIBIT C

LEGAL DESCRIPTION

CARTER PARK TEMPORARY EXCLUSIVE

LICENSE FOR CONSTRUCTION STAGING

HALF MOON BAY, CALIFORNIA
The land referred to is situated in the City of Half Moon Bay, County of San Mateo, State of California and is described as follows:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, South 28°05'31" West, 157.14 feet to the TRUE POINT OF BEGINNING, thence clockwise the following courses and distances:

South 18°40'26" East, 17.66 feet; thence,
South 71°19'34" West, 45.52 feet; thence,
North 18°40'26" West, 17.16 feet; thence,
North 70°41'38" East, 45.53 feet to the TRUE POINT OF BEGINNING.

Exclusive License Area containing 793 square feet, more or less. 194

EXHIBIT D
195

EXHIBIT E

LEGAL DESCRIPTION

CARTER PARK PERMANENT PATHWAY EASEMENT

HALF MOON BAY, CALIFORNIA
The land referred to is situated in the City of Half Moon Bay, County of San Mateo, State of California and is described as follows:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, North 66°42'30" West, 26.87 feet; thence,
South 23°20'55" West, 45.34 feet; thence,
South 68°06'29" West, 266.80 feet to the TRUE POINT OF BEGINNING, thence counterclockwise the following courses and distances:

North 62°42'10" West, 12.86 feet; thence,
South 04°30'38" East, 33.80 feet; thence,
South 66°00'00" East, 31.20 feet; thence,
South 86°41'40" East, 13.44 feet; thence,
Along a tangent curve to the right, having a radius of 4 feet, length of 1.35 feet, and a delta angle of 19°19'50"; thence,
South 67°21'50" East, 46.85 feet; thence
Along a tangent curve to the left, having a radius of 26 feet, length of 10.91 feet, and a delta angle of 24°02'12"; thence,
North 88°35'58" East, 0.99 feet; thence,
Along a tangent curve to the right, having a radius of 12 feet, length of 10.17 feet, and a delta angle of 48°33'34"; thence,
South 42°50'28" East, 1.42 feet; thence,
Along a tangent curve to the left, having a radius of 14 feet, length of 16.90 feet, and a delta angle of 69°09'32"; thence,
North 68°00'00" East, 65.34 feet; thence,
North 18°58'42" West, 4.61 feet; thence,
South 71°22'45" West, 35.98 feet; thence,
196
South 25°23'21" West, 2.88 feet; thence,
Along a tangent curve to the right, having a radius of 5 feet, length of 4.59 feet, and a delta angle of 52°37'24"; thence,
South 78°00'44" West, 4.97 feet; thence,
Along a tangent curve to the left, having a radius of 100 feet, length of 14.94 feet, and a delta angle of 8°33'33"; thence,
South 69°27'12" West, 3.75 feet; thence,
Along a tangent curve to the right, having a radius of 8 feet, length of 9.45 feet, and a delta angle of 67°42'20"; thence,
North 42°50'28" West, 1.44 feet; thence,
Along a tangent curve to the left, having a radius of 18 feet, length of 15.26 feet, and a delta angle of 48°33'34"; thence,
South 88°35'58" West, 0.99 feet; thence,
Along a tangent curve to the right, having a radius of 20 feet, length of 8.39 feet, and a delta angle of 24°02'12"; thence,
North 67°21'50" West, 46.85 feet; thence
Along a tangent curve to the left, having a radius of 10 feet, length of 3.37 feet, and a delta angle of 19°19'50"; thence,
North 86°41'40" West, 21.57 feet; thence,
North 21°36'49" West, 18.09 feet; thence,
North 70°12'56" East, 1.41 feet; thence,
North 21°36'49" West, 18.00 feet to the TRUE POINT OF BEGINNING.

Pathway easement containing 1,522 square feet, more or less. 197

EXHIBIT F
198

EXHIBIT G

GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of Half Moon Bay City Hall
501 Main St.

Half Moon Bay, CA 94019
No Recording Fee Per
Government Code 6103
No Document Transfer Tax
Per R & T Code 11922
_____________________________________________________________________________ City of Half Moon Bay, California (Space above this line reserved for Recorder’s use only) APN 056-128-110

GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BAHRAM ABOLMOLUKI and ZOHREH ABOLMOLUKI, as Trustees of the ABOLMOLUKI LIVING TRUST DATED MAY 25, 2018 ("Grantor"), hereby grant to the CITY OF HALF MOON BAY, a municipal corporation established pursuant to the laws of the State of California ("Grantee"), a permanent, non-exclusive Pathway Easement on the real property known as APN 056-128-110, in the City of Half Moon Bay, State of California (the "Property"), described on Exhibit A and identified on Exhibit B, both attached hereto and made a part hereof.

The Pathway Easement will permit pedestrian and non-motorized public access to Carter Park from and along an existing paved pathway that runs along the Property’s southern property line from Main Street to Carter Park.

Executed as of this _____ day of ______________, 2023.

BAHRAM ABOLMOLUKI, as Trustee of the ABOLMOLUKI LIVING TRUST DATED MAY 25, 2018
_____________________________
Signature
ZOHREH ABOLMOLUKI, as Trustee of the ABOLMOLUKI LIVING TRUST DATED MAY 25, 2018
_____________________________
Signature
199
Exhibit A
to Exhibit G – Grant Deed

LEGAL DESCRIPTION

CARTER PARK PERMANENT PATHWAY EASEMENT

HALF MOON BAY, CALIFORNIA
The land referred to is situated in the City of Half Moon Bay, County of San Mateo, State of California and is described as follows:

BEGINNING at the Northwesterly corner of Lot 1; as shown on that certain map entitled “Stone Pine Center, City of Half Moon Bay, County of San Mateo, California” filed in the office of the County Recorder of San Mateo County, State of California, on September 7, 1991, in Volume 121 of Maps at Pages 42-43, thence,
Along a curve to the right, having a radial bearing of North 87°20'41" West, a radius of 200 feet, length of 72.03 feet, and a delta angle of 20°38'11"; thence, North 66°42'30" West, 26.87 feet; thence,
South 23°20'55" West, 45.34 feet; thence,
South 68°06'29" West, 266.80 feet to the TRUE POINT OF BEGINNING, thence counterclockwise the following courses and distances:

North 62°42'10" West, 12.86 feet; thence,
South 04°30'38" East, 33.80 feet; thence,
South 66°00'00" East, 31.20 feet; thence,
South 86°41'40" East, 13.44 feet; thence,
Along a tangent curve to the right, having a radius of 4 feet, length of 1.35 feet, and a delta angle of 19°19'50"; thence,
South 67°21'50" East, 46.85 feet; thence
Along a tangent curve to the left, having a radius of 26 feet, length of 10.91 feet, and a delta angle of 24°02'12"; thence,
North 88°35'58" East, 0.99 feet; thence,
Along a tangent curve to the right, having a radius of 12 feet, length of 10.17 feet, and a delta angle of 48°33'34"; thence,
South 42°50'28" East, 1.42 feet; thence,
Along a tangent curve to the left, having a radius of 14 feet, length of 16.90 feet, and a delta angle of 69°09'32"; thence,
North 68°00'00" East, 65.34 feet; thence,
North 18°58'42" West, 4.61 feet; thence,
South 71°22'45" West, 35.98 feet; thence,
200
South 25°23'21" West, 2.88 feet; thence,
Along a tangent curve to the right, having a radius of 5 feet, length of 4.59 feet, and a delta angle of 52°37'24"; thence,
South 78°00'44" West, 4.97 feet; thence,
Along a tangent curve to the left, having a radius of 100 feet, length of 14.94 feet, and a delta angle of 8°33'33"; thence,
South 69°27'12" West, 3.75 feet; thence,
Along a tangent curve to the right, having a radius of 8 feet, length of 9.45 feet, and a delta angle of 67°42'20"; thence,
North 42°50'28" West, 1.44 feet; thence,
Along a tangent curve to the left, having a radius of 18 feet, length of 15.26 feet, and a delta angle of 48°33'34"; thence,
South 88°35'58" West, 0.99 feet; thence,
Along a tangent curve to the right, having a radius of 20 feet, length of 8.39 feet, and a delta angle of 24°02'12"; thence,
North 67°21'50" West, 46.85 feet; thence
Along a tangent curve to the left, having a radius of 10 feet, length of 3.37 feet, and a delta angle of 19°19'50"; thence,
North 86°41'40" West, 21.57 feet; thence,
North 21°36'49" West, 18.09 feet; thence,
North 70°12'56" East, 1.41 feet; thence,
North 21°36'49" West, 18.00 feet to the TRUE POINT OF BEGINNING.

Pathway easement containing 1,522 square feet, more or less. 201
Exhibit B
to Exhibit G – Grant Deed
202

ACKNOWLEGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of San Mateo
On , before me, , Notary Public,
personally appeared ____________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE

PLACE NOTARY SEAL ABOVE
203

ACKNOWLEGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of San Mateo
On , before me, , Notary Public,
personally appeared ____________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

SIGNATURE

PLACE NOTARY SEAL ABOVE
204

EXHIBIT H

CERTIFICATE OF TRANSFEROR

OTHER THAN AN INDIVIDUAL
(FIRPTA AFFIDAVIT)
Section 1445 of the Internal Revenue Code provides that a transferee of a United States real property interest must withhold tax if the transferor is a foreign person. To inform the CITY OF HALF MOON BAY, a municipal corporation established pursuant to the laws of the State of California, the transferee of certain real property located in the City of Half Moon Bay, California, that withholding of tax is not required upon the disposition of such U.S. real property interest by Bahram Abolmoluki and Zohreh Abolmoluki, Trustees of the Abolmoluki Living Trust dated May 25, 2018 (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:

1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

2. Transferor’s Social Security Numbers are:

Bahram Abolmoluki __________________
Zohreh Abolmoluki ___________________

3. Transferor’s office address is N/A (we are not employees). Our residence address is 3312 Melendy Drive, San Carlos, CA 94070.

Transferor understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalty of perjury, we declare that we have examined this certificate and to the best of our knowledge and belief it is true, correct and complete, and we further declare that we have authority to sign this document on behalf of Transferor.

Dated: _______ __, 2023.

Bahram Abolmoluki
Zohreh Abolmoluki
205

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
FROM: Matthew Chidester, City Manager
TITLE: AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH COUNTY OF SAN MATEO SHERIFF’S OFFICE - AMENDMENT FIFTEEN
______________________________________________________________________________ RECOMMENDATION:

Authorize the City Manager to negotiate and execute Amendment Fifteen to the Agreement for Law Enforcement Services with the County of San Mateo Sheriff’s Office, continuing services under the current Rates/Payments schedule, through September 30, 2023.

FISCAL IMPACT:

The Sheriff has proposed an amount of $5,885,605 to provide services in FY 2023-24. This is a significant increase over the budget for FY 2022-23, and is the result of the completion of a Countywide cost of service study. The proposed increase, combined with the recent notice of adjustments to the County Public Safety Communications (911) contract, requires additional budget evaluation, particularly looking to future fiscal years. The recommended extension allows the Sheriff to continue serving the community for the next three months at the existing rate, while the City and Sheriff continue to evaluate options and negotiate the contract for the remainder of the fiscal year. The total cost to the City from July 1, 2023, through September 30, 2023, will be $1,088,021. To be fiscally prudent, the entire proposed amount has been included in the Recommended Budget for FY 2023-24.

STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety and Fiscal Sustainability elements of the Strategic Plan.

BACKGROUND:

On June 7, 2011, the City Council entered into an Agreement with the County of San Mateo (County) to provide law enforcement services and personnel to the City of Half Moon Bay. The initial agreement ran for a five-year period ending June 30, 2016. The original Agreement addressed the complex issues associated with a transfer of City police services to the County Sheriff.

Over the course of the last eleven years, the City of Half Moon Bay has not only realized annual cost savings and long-term savings in retirement related costs, but also benefitted from increased efficiencies and services for both City residents and the entire Coastside. The contract model has 206

provided access to a wider variety of resources and services which the community and residents of Half Moon Bay have benefitted from. Examples of some of the expanded resources provided by the Sheriff’s Department include additional resource officers dedicated to community policing efforts, access to the Crime Suppression Unit, a large multi-disciplinary investigations unit, and the Sheriff’s Activity League (SAL), which serves the youth of our community with educational and athletic activities and leadership programs.

The January 23rd mass shooting incident and subsequent investigations is a very tangible example of the benefits of our contractual relationship with the Sheriff. The City and Coastside were seamlessly provided the Sheriff resources necessary to respond to this significant incident, at no additional cost to the City.

The original Agreement included an option for the City and County to renew the Agreement for three, three-year terms. The Agreement was extended for the first three-year period in June 2016, and the second three-year term in June 2019. In 2022, the City Council directed staff to negotiate a 2-year extension, which expires June 31, 2024. In total, the Agreement has been extended fourteen times since its inception, to exercise the options to extend the term, adjust staffing levels and services, and adjust the annual fees based on actual cost increases incurred by the Sheriff.

Following a Countywide cost of service study to identify actual costs incurred providing services, the Sheriff has proposed $5,885,605 to provide services in FY 2023-24, an approximately 35% increase from FY 2022-23, for the same scope of services. This significant increase was not previously anticipated by the parties, and the Sheriff has offered the opportunity to work together to find a solution that meets the needs of the sheriff and the City.

DISCUSSION:

The City and sheriff have agreed to amend the agreement for three months, though September 30, 2023, under the current Rates/Payments schedule. For the three months, the total charges due will be $1,088,021. This rate represents savings of $383,380 from the initial proposed rate increase. The City and sheriff will continue to evaluate options to decrease the overall costs and negotiate the contract for the remainder of the fiscal year.

The City Manager seeks authorization to negotiate and execute a simple amendment continuing services under the current Rates/Payments schedule through September 30, 2023, and will return before the expiration with the contract for the remainder of the fiscal year. Additionally, the overall term of the Agreement will expire on June 30, 2024, and the City and Sheriff will begin discussions on extension of the contract later this calendar year.

ATTACHMENTS:

Resolution
207
RESOLUTION NO. C-2023-____

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

CITY MANAGER TO NEGOTIATE AND EXECUTE AMENDMENT FIFTEEN TO THE AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH THE COUNTY OF SAN MATEO SHERIFF’S OFFICE,

CONTINUING SERVICES UNDER THE CURRENT RATES/PAYMENTS SCHEDULE, THROUGH SEPTEMBER 30, 2023
WHEREAS, in 2011, the City of Half Moon Bay entered into an agreement with the County of San Mateo to provide Law Enforcement Services for the City; and WHEREAS, the Agreement has been amended fourteen times to extend the term, adjust service levels, and increase the charges; the current term expires on June 30, 2024; and WHEREAS, the City and County desire to further amend the agreement to under the current Rates/Payments schedule for three months, to allow continued negotiation of rates for FY 2023-24.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to negotiate and execute Amendment Fifteen to the Agreement for Law Enforcement Services with the County of San Mateo Sheriff’s Office, continuing services under the current Rates/Payments schedule, through September 30, 2023. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June 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
208

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Public Works Director/City Engineer TITLE: HALF MOON BAY SEWER COLLECTION SYSTEM MAINTENANCE—SEWER

AUTHORITY MID-COASTSIDE
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution approving the FY 2023-24 Sewer Authority Mid-Coastside (SAM) Collections Budget and authorizing the City Manager to execute Amendment No. 6 to the sewer collection system maintenance professional services agreement with the Sewer Authority Mid-Coastside (SAM) establishing the FY 2023-24 annual cost at $263,824 and extending the Agreement for one (1) additional year (expiration date of June 30, 2024).

FISCAL IMPACT:

The cost of the contract has been included in the Recommended FY 2023-24 Half Moon Bay Sewer Operating Budget. Collection contract services were anticipated and included generally in the 2020 Sewer Rate Study and proposed rate adjustment. The costs are borne by sewer customers via sewer user fees.

BACKGROUND:

The City owns and operates approximately 35 miles of sewer main lines. The system also includes three pump (lift) stations and three force mains. These together comprise the sewer collection system. These sewer system components require regular oversight, maintenance, and cleaning.

Since March 2018, the collections system cleaning has been a hybrid approach, with SAM providing cleaning services (pipe network and pump stations) and sanitary sewer overflow (SSO) response. Mark Thomas Company provided oversight of the cleaning services, pump station maintenance, and SSO support. Mark Thomas also provided Fats, Oils, and Grease (FOG) inspections and closed-circuit television (CCTV) services. Over these last few years, cleaning and maintenance have gone well and overall operations have improved from a cleaning standpoint.

The collection system maintenance has been fully operational under the new contracts and scopes of work since July 23, 2018. Having SAM as our 24-hour, 7 day a week emergency callout provider has also been a major factor in our success to date. At this point, staff feels 209

comfortable moving forward with SAM continuing the cleaning services. Under a separate agenda item, staff is recommending approval of a modified Mark Thomas scope of work which will include only CCTV and FOG program work.

DISCUSSION
The SAM Joint Powers Authority authorizes the Agency to provide contract services to Member Agencies. SAM has provided collections system services under contract to each of the Member Agencies for many years. For accounting purposes, SAM prepares (with assistance of Agency Managers), and the Board of Directors approve, a formal budget for the program. The budget covers staffing, equipment and accounting for collection system services which includes sewer cleaning, pump station inspections (and wet well cleaning), SSO response, and USA markings.

Since 2018, SAM has provided collections services to the City under a separate professional services agreement. This Agreement was negotiated following the RFP process and has been agreeable to both parties and their respective counsels since. The Agreement was initially valid for a three-year term. The Agreement has been amended to modify terms and extend a total of five times to date. Staff is recommending Amendment No. 6 to reflect the FY 2023-24 monetary amount and extend the expiration date by an additional year (to June 30, 2024). The Agreement calls for continuation of cleaning at roughly 50-percent cleaning (one-half system each year); the proposed contract may ultimately result in slightly more than 50-percent.

Hotspot cleaning would remain on the established cleaning schedules; the amount and frequency of “Hot Spot” cleaning has and is anticipated to be reduced based on improved cleaning and documentation. Based upon the work completed, conditions observed and the documentation, we are comfortable continuing with current regular cleaning schedule (Granada and Montara are doing the same).

The annual cost will be $263,824. Overall costs of service continue to increase based upon SAM employee MOUs and inflation.

CONCLUSION:

There is an inherent cost to operating and maintaining a sewer collection system. The contract services recommended in this report are necessary for the safe and efficient operation of the collection system. Staff has continued to evaluate needs and to look for cost savings wherever possible.

ATTACHMENT:

Resolution
210
1 of 2
Resolution No. C-2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING THE FISCAL YEAR 2023-24 SEWER AUTHORITY MID-COASTSIDE (SAM) COLLECTIONS BUDGET AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 6 TO THE PROFESSIONAL

SERVICES AGREEMENT WITH THE SEWER AUTHORITY MID-COASTSIDE FOR SEWER

COLLECTION SYSTEM CLEANING, MAINTENANCE AND RELATED SERVICES WHEREAS, City of Half Moon Bay representatives have reviewed and provided input on the proposed Collections (Contract Services) Budget of the Sewer Authority Mid-Coast (SAM) Budget for Fiscal Year (FY) 2023-24; and
WHEREAS, the proposed SAM Collections Budget totals $809,592 and with a reserve of $33,639, the overall cost is adjusted to $775,953 for FY 2023-24; and WHEREAS, with the City’s share of the FY 2023-24 SAM Collections Budget totals $263,824, representing 34-percent of the total; and
WHEREAS, the City entered into a professional services agreement with the Sewer Authority Mid-Coastside on July 23, 2018, with annual amendments; and WHEREAS, the City has worked with SAM and the Member Agencies to develop a costsharing arrangement for FY 2023-24; WHEREAS, the cost-sharing agreement calls for continuance of the same level of cleaning, no less than 50-percent of all lines plus “Hot Spots”; and WHEREAS, the agreement continues to allow the City to manage its Fats, Oils and Greases (FOG) program.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon hereby:
1) Approves the Collections Budget of SAM for FY 2023-24 of $775,953 (included as Exhibit A to this resolution) of which the City’s share is $263,824 (34% of total); and 2) Authorizes the City Manager to execute Amendment No. 6 to the Professional Services Agreement with the Sewer Authority Mid-Coastside extending the expiration date to June 30, 2024, in an amount not to exceed amount of $263,824. ***************************************************************** 211
2 of 2
I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 20th day of June 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
212
CONTRACT COLLECTION SERVICES BUDGET
Consolidated (Half Moon Bay, GCSD, MWSD)
FY 2021/22
ACTUAL
FY 2022/23

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages 369,342                 375,451                   355,966                  401,567                  45,601               12% 2 Premium Pay 57,568                   68,075                     51,588                    60,861                    9,273                  14% 3 Health Benefits 102,699                 109,277                   98,027                    124,143                  26,117               24% 4 Retirement Cont. 42,173                   29,265                     27,529                    30,163                    2,635                  9% 5 Retiree Med/OPEB (9,014)                    6,667                        6,345                       5,841                       (504)                    (8%) 6 Misc. Benefits 28,906                   29,869                     25,464                    27,039                    1,575                  5% 7 Admin/Tim Allocation ‐ 5% ‐                              45,806                     45,806                    51,214                    5,408                  12% 8 Subtotal 591,674               664,410                  610,724                 700,829                               14% 90,105 Non‐Personnel                         ‐
9 Legal Services ‐                              ‐                                ‐                               ‐                               ‐ 10 Engineering Services ‐                              ‐                                ‐                               ‐                               ‐ 11 Professional Services ‐                              791                           ‐                               ‐                               ‐                          0% 12 Prof. Memberships ‐                              ‐                                ‐                               ‐                               ‐ 13 Insurance Premiums 12,082                   25,000                     ‐                               25,000                    25,000               100% 14 Misc. Expenses 7,707                     4,281                        3,121                       3,214                       94                       2% 15 Utilities 1,150                     9,247                        7,229                       7,446                       217                     2% 16 Travel & Training ‐                              ‐                                1,944                       2,002                       58 17 Equipment Rental 215,661                 ‐                                ‐                               ‐                               ‐ 18 Bldg & Maint Services ‐                              ‐                                ‐                               ‐                               ‐ 19 Chemicals ‐                              ‐                                ‐                               ‐                               ‐ 20 Permits & Licenses 11,700                   ‐                                ‐                               ‐                               ‐ 21 Supplies ‐                              19,129                     20,486                    21,101                    615                     3% 22 Equipment ‐                              ‐                                ‐                               ‐                               ‐ 23 Infrastructure                             ‐                                ‐                               ‐                               ‐                         ‐ 24 Claims/Penalties                             ‐                                ‐                               ‐                               ‐                         ‐ 25 Repairs & Maintenance                             ‐                     25,000                               ‐                    50,000              50,000 200% 26 Subtotal 248,301                                  83,448                    32,780                  108,763               75,983 91% 25 TOTAL              839,974                  747,858                  643,504                  809,592              61,733 8% FY 2021/22
ACTUAL
FY 2022/23

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
26 JPA Assessments ‐                              ‐                           ‐ 27 Contract Services            1,093,976                   747,858                   747,858                   775,953               28,094 4% 28 NDWSCP Fees                             ‐                                ‐                                ‐                          ‐ ‐ 29 Misc. Fees                             ‐                                ‐                                ‐                          ‐ ‐ 30 Interest Earnings                             ‐                                ‐                                ‐                          ‐ ‐ 31 Misc. Revenue                             ‐                                ‐                                ‐                          ‐ ‐ 32 From/(To) Reserves (*)                             ‐                                ‐                     33,639               33,639 ‐ 33 TOTAL           1,093,976                  747,858                  747,858                  809,592               61,733 8% By Agency:
34 Half Moon Bay 312,625                                    254,272 254,272                    263,824                    9,552                   4% 34.00% 35 Granada CSD 324,221                 209,400                    209,400                    217,267                    7,866                   4% 28.00% 36 Montara WSD 457,131                 284,186                    284,186                    294,862                    10,676                4% 38.00% 37 TOTAL 1,093,976            747,858                   747,858                   775,953                   28,094               4% (*) Figure represents difference between collections assessments received from member agencies & collections expenditures as noted in the FY 21‐22 audited financial statements.

CHANGE FROM
FY 2022/23 ADOPTED
CHANGE FROM
FY 2022/23 ADOPTED
DRAFT
4/21/2023
213

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: John Doughty, Assistant City Manager
Maz Bozorginia, Public Works Director/City Engineer
TITLE: SEWER AUTHORITY MID-COASTSIDE FISCAL YEAR 2023-24 OPERATIONS AND

MAINTENANCE (GENERAL) BUDGET
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution conditionally approving the General Budget of SAM for FY 2023-24 (included as Exhibit A to the resolution) as follows:

1. The City approves $3,449,957, which is the full budgeted amount less 61.5% of the $3.5 million FY 23-24 budgeted amount for the Montara Force Main infrastructure replacement project; and

2. The City approves the full $9,109,686, of which the City’s flow-based allocation for all costs is $5,602,457 (61.5% of total) to be paid under protest but directs the Mayor and City Manager to refrain from delivering the resolution to SAM and paying, under protest, 61.5% of the Montara Force Main replacement project until all parties have executed the Stipulation Regarding Expenses and Assessments of Sewer Authority Mid-Coastside for 2023-24 Fiscal Year (“Stipulation”) including any non-substantive changes as the City Attorney may approve. If this approval becomes effective, and the resolution is signed and delivered, it will supersede the partial approval of SAM’s budget specified in paragraph 1 above.

FISCAL IMPACT:

SAM’s proposed Operations and Maintenance (O&M or General) budget for Fiscal Year (FY) 2023-24 totals $9,205,026 of which the City’s share is $5,602,457 (61.5% of total). SAM includes their Capital Budget within the General Budget. The total Capital Budget for SAM is $3,500,000 of which the City’s share is $2,152,500 (61.5%) and includes a significant amount towards the replacement of the Montara Force Main. SAM costs will be paid from City sewer revenues (sewer user fees—Sewer Fund 05) and transfers of funds from the Sewer Capital Fund (Sewer Fund 06) as adopted by City Council per the 2020 Rate Study. While there are sufficient funds at present, staff will assess potential funding actions in the coming fiscal year. 214

BACKGROUND:

The Sewer Authority Mid-Coastside, a Joint Powers Authority (JPA), is made up of three member-agencies: City of Half Moon Bay (City), Granada Community Services District (Granada), and the Montara Water and Sanitary District (Montara). Each year, the three member-agencies must adopt the SAM budgets, which include General Operation and Maintenance, and Projects. The JPA provides that O&M costs are funded by the three agencies based on their respective flows into the SAM Treatment Plant. The City’s flows are currently measured/calculated at 59.4%.

In FY 2017-18, the City and its SAM Board representatives asserted during the budget development process that the Intertie Pipeline System and any capital projects involving the capital repair and replacement of the IPS does not serve or directly benefit City sewer rate payers and should not be included as part of the City’s cost burden. This assertion was followed by the filing of a Complaint for Declaratory Relief which seeks judicial declaration for a variety of issues including affirming the City does not benefit from the Intertie Pipeline System and the City need not fund its replacement and reconstruction. Under a subsequent Stipulation and Order entered by the court on September 17, 2017, the City agreed to fund the Intertie Pipeline System (IPS) project, under protest, pending the outcome of the City’s request for declaratory relief. Under this stipulation, the City agreed to fund, under protest, an additional $1,505,000 in FY 2017-18.

On June 5, 2018, the City Council adopted the FY 2018-19 SAM O&M Budget. The budget request from SAM totaled $6,197,273. The City’s share of the initial approved budget was $3,360,430 (54.2% share). This budget was subsequently amended to increase the overall budget by $328,000 (City share $181,777).

On April 2, 2019, the City Council adopted the FY 2019-20 SAM O&M Budget. The budget request from SAM totaled $7.4 million including the Capital/Infrastructure Budget. The City’s share of the initial approved budget was $4,131,899 (56% share).

On June 2, 2020, the City Council adopted the FY 2020-21 SAM O&M Budget. The budget request from SAM totaled $7.4 million. The City’s share of the approved budget was $4,133,125 (56% share).

On April 26, 2021, the SAM Board discussed the General Budget. The City requested that SAM separate the Capital Budget from the proposed General Budget so that they could be voted on separately. The SAM General Manager initially separated the budgets but consolidated them in the final version that was presented to the SAM Board. A vote on the motion to approve the consolidated General Budget failed on a 4-4 vote (City representatives voting no).

On May 10, 2021, the SAM Board authorized the General Manager to forward the consolidated Fiscal Year 2021-22 General Budget to the three member agencies for consideration. SAM Counsel advised the Board to adopt a consolidated budget. The consolidated Budget was approved by the City Council on May 18, 2021.
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On February 7, 2022, the Santa Clara County Superior Court ruled on the City’s Complaint for Declaratory Relief. The Court granted summary judgment in favor of Granada Community Services District and Montara Water and Sanitary District, and against the City. The Court found that the IPS replacement project, currently estimated at $20 million, is “maintenance” that the member agencies agreed to fund jointly. Under the JPA, the member agencies pay for maintenance based on their relative share of wastewater flows to the SAM plant. The City’s flows are currently 59.4% of the total.

On March 24, 2022, the City filed an appeal with the California Court of Appeal, Sixth Appellate District.

DISCUSSION:

Overview
The sewer utility (enterprise) is funded by the users of the City’s collection system. User charges fund: 1) day-to-day maintenance, cleaning, and repair of the collection system (sewer mains, pump stations and manholes); 2) treatment of effluent (by SAM); and 3) capital repair and replacement (Capital Reserve). Sewer charges are set in accordance with State law. State law in its simplest terms mandates that fees do not exceed the actual/anticipated costs of operating, managing, and replacing the sewer system. Historically, the City has allocated funding internally to two distinct enterprise funds: Fund 05 (Sewer Operating Fund) and Fund 06 (Sewer Capital Fund). Fund 05 has been used to fund maintenance of the collection system and costs associated with treatment and disposal of effluent. Fund 05 serves as a reserve fund which is used for the repair and replacement of the collection system. Historically, the funds were separated into distinct funds to ensure that capacity related revenues were not expended on operational costs. The City has limited revenues coming from capacity fees and has implemented new accounting software that addresses minor accounting issues.

The City Council adopted five (5) year programmed adjustments to City sewer rates and charges on June 2, 2020. This represented the first adjustment by the City in six fiscal years. The rate adjustment included a shift to a flat rate structure for the residential users. The rate adjustments were needed to address significant increases in costs of maintenance, cleaning, effluent treatment, and construction of capital replacements has steadily increased to the point that annual costs are now exceeding the annual fees received. From FY 2015-16 through FY 2018-19, SAM costs increased by over 50%. In FY 2022-23, SAM is requesting an additional 15% increase from the City. In 2020, the City Council agreed to allocate monies from Fund 06 to cover capital and operational costs of the City sewer system.

Staff has continued, regardless of litigation outcome, to advocate for preparation of a separate distinct Capital/Infrastructure Budget rather than included as part of the consolidated General Budget. At present, the Capital/Infrastructure costs are allocated by the percentage of flows to the Plant (proposed at 61.5%). The City is still protesting all capital costs related to the IPS based upon the 2017 Stipulation and Order. The City believes that the appropriate methodology for cost allocation of all mutually beneficial capital projects should be by ownership of the depreciated/depreciating capital assets rather than unrelated flows. On the 216

other hand, the JPA provides that expenses related to operation and maintenance shall be based on flows into the SAM Treatment Plant. The City is and will continue to advocate for the SAM Board to modernize and update the Joint Powers Agreement to address many issues including cost allocation methodology.

As noted earlier, the use of Sewer Capital Funds today is necessary to cover fixed and necessary costs of the sewer enterprise. As discussed in the 2020 Sewer Charges Study, without increases in charges, the sewer enterprise fund will be overdrawn by FY 2023-24. SAM costs, including those related to the IPS, will be the largest contributor to the funding issues of the sewer enterprise now and well into the future. The City sewer rates will need to be re-evaluated for FY 2023-24 given SAM cost increases and capital needs. The City is also advocating for SAM to evaluate financing options for major capital maintenance and replacement to provide greater certainty in capital budgeting in the coming years.

The City’s FY 2023-24 draft sewer collections budget is also being presented to the City Council on June 20, 2022. This budget includes reductions over prior year (via Capital Budget) in the City’s capital maintenance and replacement program to offset SAM related cost increases.

While staff is comfortable in the state of the collection system, deferral of capital repair and replacement cannot continue indefinitely.

The City of Half Moon Bay has actively participated in the governance and oversight of the Sewer Authority Mid-Coastside (SAM) as a member of the Joint Powers Authority (JPA). The City’s interest is to ensure that City ratepayers receive the best possible sewer (collection and treatment) services at the lowest reasonable cost. The draft budget forwarded to the City of Half Moon Bay includes a significant increase (15%) in the overall operating costs.

These costs are borne by the City in two ways: 1) its share of the costs as part of the historic flow-based allocation methodology; and 2) an increase in the City’s share of costs to 61.5% (up from 59.4%). Fiscal restraint and proactive response to emerging issues including capital maintenance by SAM staff will continue to be critical to limiting emergencies and budget augmentations during the fiscal year.

Additionally, due to the 2022/2023 Winter Storms, the Montara Force Main had a spot failure in a critical segment in Moss Beach that resulted in SSO’s and a shutdown of the system to repair. This failure was surprising, given that SAM staff and their consultant engineer (SRT) prepared a condition assessment for the Montara Force Main back in 2021 that stated that the pipe was in good condition and no immediate replacement was necessary. After the atmospheric rivers, SAM staff and member agencies started to look closely at the condition and are awaiting results of a forensic assessment. SAM is now of the position that the remaining segments of the Montara Force Main (approximately 15,000 linear feet) need to be replaced immediately. SAM did authorize a contract with SRT to start design and environmental work, and the City awaits an update on that progress. The parties are currently negotiating a Stipulation Regarding Expenses and Assessments of Sewer Authority Mid-Coastside for 2023-24 217

Fiscal Year that would expressly authorize the City to pay for the Montara Force Main replacement project under protest.

Assessments
Per the Joint Powers Authority, the O&M budget is allocated based on the percentage share of sewer flows to the SAM Treatment Plant. The draft budget establishes the City’s share of the SAM O&M Budget at 61.5% based upon the SAM adopted calculation and methodology of plant flows. The City’s measured flows, as calculated under SAM’s formula, have increased from

49.7% (FY 2015-16) to 61.5% (FY 23-24). Since Montara and Granada’s systems connect to the plant through force main, the calculation takes the total flows out of the plant, minus the force main readings and then all other flows are assigned to Half Moon Bay. This method does not account for any plant related inflow and infiltration (I&I) and puts any storm-related flow increases squarely on Half Moon Bay rate payers.

The City remains hopeful that the flow-based structure and methodology can and will be reevaluated to provide for greater predictability/ease of budgeting and in consideration of the small-fixed costs associated with flow to the treatment plant.

Conclusion
The City Council took necessary steps to address sewer charges and modify the rate structure to provide sufficient funds to operate and maintain the City collection system and to fund SAM related expenses in FY 2023-24. Resolution of the City’s Declaratory Relief action is also critical to the long-term funding strategy for the City.

Given the ongoing negotiations regarding a stipulation, staff recommends the following conditional approval:

1. The City approves $ 3,449,957, which is the full budgeted amount less 61.5% of the $3.5 million FY 23-24 budgeted amount for the Montara Force Main infrastructure replacement project; and,

2. The City approves the full $9,109,686 of which the City’s flow-based allocation for all costs is $ 5,602,457 (61.5% of total) to be paid under protest but directs the Mayor and City Manager to refrain from delivering the resolution to SAM and paying, under protest, 61.5% of the Montara Force Main replacement project until all parties have executed the Stipulation Regarding Expenses and Assessments of Sewer Authority Mid-Coastside for 2023-24 Fiscal Year (“Stipulation”) including any non-substantive changes as the City Attorney may approve. If this approval becomes effective, and the resolution is signed and delivered, it will supersede the partial approval of SAM’s budget specified in paragraph 1 above.
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ATTACHMENT:

Resolution conditionally approving the consolidated Sewer Authority Mid-Coastside Operation and Maintenance (General) Budget for FY 2023-24 (Includes Exhibit A—SAM Draft Budget) 219
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Resolution No. C-2023-

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

CONDITIONALLY APPROVING THE SEWER AUTHORITY MID-COASTSIDE GENERAL (OPERATIONS AND MAINTENANCE) BUDGET FOR FISCAL YEAR 2023-24 WHEREAS, City of Half Moon Bay representatives have reviewed and provided input on the proposed General Budget of the Sewer Authority Mid-Coast (SAM) Budget for Fiscal Year (FY) 2023-24; and
WHEREAS, the proposed SAM General (Operations and Maintenance) Budget for FY 2023- 24 totals $9,109,686, of which the City’s purported share is $5,602,457 (61.5% of total); and WHEREAS, the total proposed Capital/Infrastructure Budget for SAM is $3,500,000 of which the City’s share is $2,152,500 (61.5% of total); and
WHEREAS, optimally, SAM would prepare a separate Capital/Infrastructure Budget for all capital projects; and
WHEREAS, the September 13, 2017, Stipulation and Order regarding Expenses and Assessments for the Sewer Authority Mid-Coastside in the matter of City of Half Moon Bay v.

Granada Community Services District et al. (“declaratory relief action”) Santa Clara Superior Court Case No. 17CV316927 provides that the City shall be deemed to approve under protest that part of SAM’s 2017-18 General Budget characterized as the “Infrastructure Division”, which includes the IPS and Portola Pump Station;
WHEREAS, the SAM FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23 Budgets include Infrastructure Division items that are at issue in the pending appeal of the declaratory relief action, and which the City seeks to pay under protest based on the same terms set forth in the September 13, 2017, Stipulation and Order; WHEREAS, the City of Half Moon Bay continues to advocate for more accurate and predictable methodology, whether flow or non-flow-based, for assessing SAM operations costs to make long term rate structuring and budgeting easier for all agencies; and WHEREAS, the City of Half Moon Bay continues to advocate, regardless of litigation, for a separate Capital/Infrastructure Budget consistent with the JPA, member agency budgeting methodology, and government accounting standards; and
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WHEREAS, the City of Half Moon Bay continues to advocate for a non-flow-based allocation methodology (such as ownership-based) for assessing SAM related capital costs in line consistent with the JPA and capital depreciation; and
WHEREAS, the City of Half Moon Bay continues to advocate for long-term facility planning for the SAM Treatment Plant in light of known (and greater anticipated) risks of flooding as well as to address aging systems and structures; and
WHEREAS, the City of Half Moon Bay continues to advocate for evaluation of financing options for the capital improvement program rather than the present pay-as-you-go funding; and
WHEREAS, the costs of SAM operations for FY 2023-24 will be funded from City Sewer Enterprise Funds including a one-time transfer of funds from the Sewer Capital Fund (Fund 06).

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay conditionally approves the General (O&M) Budget of SAM for FY 2023-24 (included as Exhibit A to this resolution) as follows:

1. The City approves $ 3,449,957, which is the full budgeted amount less 61.5% of the $3.5 million FY 2023-24 budgeted amount for the Montara Force Main infrastructure replacement project; and,

2. The City approves the full $9,109,686 of which the City’s flow-based allocation for all costs is $5,602,457 (61.5% of total) to be paid under protest but directs the Mayor and City Manager to refrain from delivering the resolution to SAM and paying, under protest, 61.5% of the Montara Force Main replacement project until all parties have executed the Stipulation Regarding Expenses and Assessments of Sewer Authority Mid-Coastside for 2023-24 Fiscal Year (“Stipulation”) including any non-substantive changes as the City Attorney may approve. If this approval becomes effective, and the resolution is signed and delivered, it will supersede the partial approval of SAM’s budget specified in paragraph 1 above. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June 2023 by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:
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ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ ______________________________ Jessica Blair, City Clerk Deborah Penrose, Mayor
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General Budget
Fiscal Year 2023/24
223

OPERATIONS BUDGET

EXECUTIVE SUMMARY
The Joint Exercise of Powers Agreement (Agreement) that created SAM and governs its day-to-day operations specifies that “The total expenses of operation and maintenance shall be shared in a manner based on flows into the single consolidated plant. The General Budget is divided into Administrative Services, Treatment, Environmental Compliance, and Infrastructure.

The General Budget includes obligations for wages and benefits defined in employment and bargaining contracts, increases in retirement contributions, and other non-discretionary expenses.

JPA Income & Expenses – General Budget
Operating Income
Assessments - City of Half Moon Bay 5,602,457
Assessments - Granada Community Services District 1,735,395 Assessments - Montara Water & Sanitary District
Interest Income
1,771,834
50,000
NDWSCP Fees 45,340
Total Operating Income $ 9,205,026
Operating Expenses
Wages 1,724,516
Benefits 793,941
Legal Services 356,666
Engineering Services 128,750
Professional & Technical Services 740,714
Professional Memberships 57,421
Insurance Premiums 112,053
Miscellaneous Expenses 92,354
Utilities 707,831
Travel & Training 16,397
Equipment Rental/Lease 7,281
Building & Maintenance Services 187,890
Chemicals 412,114
Permits & Licenses 51,777
Supplies 67,220
224
Equipment 17,583
Infrastructure Projects 3,500,000
Claims & Penalties
Repairs & Maintenance
80,340
150,179
Total Expenses $ 9,205,026
Total Operating Expenses (less Infrastructure) $ 5,705,026 Contribution to Reserve Funds
(Revenues less Expenses)
$ 0

The overall increase from the adopted budget for Fiscal Year 2022/23 to the proposed budget for Fiscal Year 2023/24 is $874,401 (10%). This is primarily due to an increase in the infrastructure budget, wages legal services, and chemicals.

Of the total General Budget, $2.52 million (27%) is for wages and benefits. The cost of infrastructure improvements is $3.5 million (38%). Legal, Engineering and Professional Services is $.837 million (13%) and accounts for a significant percentage of the budget due to SAM’s dependency on contractors and consultants for technical and specialized services. Other expenses (including Utilities, Insurance, Equipment Rental, Maintenance Services, Chemicals, Permits, Supplies, Equipment, and Claims) represent 21% of the budget.
*All Other Expenses include: Utilities, Insurance, Equipment Rental, Maintenance Services, Chemicals, Permits, Supplies, Equipment, and Claims.

Wages and
Benefits
$2,518,456
27%
Legal and Professional
Services
$1,226,130
13%
Infrastructure
$3,500,000
38%
All Other
Expenses*
$1,960,440
21%
Expenses by Category
Total $9.2 million
225
Division Budgets by Fiscal Year
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
$
Change
%
Change
Administration $1,720,904 $1,465,910 $1,339,194 $1,582,520 $243,326 18% Treatment $3,714,449 $3,662,645 $3,732,405 $3,885,110 $152,705 4% Environmental
Compliance $271,905 $308,206 $249,630 $237,396 $(12,234) (5)% Total Operating
Budget $5,707,258 $5,436,761 $5,321,229 $5,705,026 $383,797 7% Infrastructure $149,562 $1,412,419 $3,009,397 $3,500,000 $490,603 16% Total General
Budget $5,856,820 $6,849,180 $8,330,626 $9,205,026 $874,400 10% The Administrative Services division increased $243,326 (18%). The net increase is a result from COLA increase of 3% and related merit increase. The Authority also approved a long term agreement with General Counsel which established a three year not to exceed amount.

The Treatment division increased $152,705 (4%), which is due to the COLA increase of 3% and an increase in engineering services and chemicals. Other costs have decreased over the prior year.

The Environmental Compliance division budget decreased $12,234 (5%) primarily due to projected decrease in the use of various supplies.

The Infrastructure division increased $490,603 to address the projects in the approved FY2023-2024 Capital Improvement Plan.

BUDGET ALLOCATION AND ASSESSMENTS
The Joint Exercise of Powers Agreement (JEPA) stipulates that the total expenses of operation and maintenance of all of the components of the Present Project (intertie pipeline and attendant pump facilities, ocean outfall, treatment plant) shall be shared in a manner based on flows.

Flow Results for Budget Allocations*

HMB GCSD MWSD
FY 2023/24 61.5% 19.05% 19.45% (Based on Calendar Year 2022) FY 2022/23 59.4% 19.90% 20.70% (Based on Calendar Year 2021) Variance 2.10% -0.85% -1.25%
* The member agency assessments are allocated based on flow percentages from the previous calendar year. This allocation varies each year. 226
Total Assessments for Each Member Agency*
FY 2020/21
Actual
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed
$
Change
%
Change
Half Moon
Bay $4,133,125 $4,241,911 $4,871,480 $5,602,457 $730,977 15% Granada CSD $1,589,305 $1,489,027 $1,630,110 $1,735,395 $105,285 6% Montara WSD $1,584,637 $1,532,608 $1,694,036 $1,771,834 $ 77,798 5% Total $7,307,067 $7,263,546 $8,195,626 $9,109,686 $914,061 11% * The assessments to the Member Agencies are rounded to nearest dollar.

HMB
$5,602,457
62%
GCSD
$1,735,395
19%
MWSD
$1,771,834
19%
Assessments for FY 2023‐24
Based on Calendar Year 2022 Flow
227
Assessments History by Agency (in 1,000’s)

$859  $848  $1,324  $1,324  $1,529  $1,585  $1,535  $1,694  $1,772 $1,135  $1,165
$1,527  $1,543  $1,753  $1,589  $1,489  $1,630  $1,735  $1,980  $2,104 $3,461  $3,552
$4,132  $4,133  $4,242
$4,871
$5,602
$‐
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
FY15‐16 FY16‐17 FY17‐18 FY18‐19 FY19‐20 FY20‐21 FY21‐22 FY22‐23 FY23‐24

MWSD GCSD HMB
228

OVERALL OPERATIONS BUDGET SUMMARY
(Includes: Administrative Services, Treatment, Environmental Compliance, and Infrastructure) Key Changes
Personnel costs: net increase due COLA and merit increases Legal Services:
$ 228,404
$ 181,666
Professional services: Increase due to estimates based on Year-to-Date Actuals $ (76,353) Claims/Penalties
Utilities:

Equipment Rental:
$ 65,340
$ 44,017
$ (90,820)
Chemicals: Based on Year-to-Date Actuals $ 125,066
Supplies: $ (61,461)
All other operating expenses: net increase due to CPI and adjustments to other operating expenses $ (32,061) TOTAL GENERAL OPERATING EXPENDITURES BUDGET INCREASE $ 383,798 Infrastructure: net increase result of CIP (includes engineering costs, reclassified) $ 490,603 TOTAL GENERAL OPERATING EXPENDITURES BUDGET INCREASE $ 874,401 FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages 1,442,622          1,537,386             1,478,321             1,724,516             187,130           12% 2 Premium Pay 126,623             113,626                98,966                   98,182                   (15,444)            (14%) 3 Health Benefits 236,967             265,562                272,911                289,472                23,910             9% 4 Retirement Cont. 318,790             253,580                252,035                282,760                29,179             12% 5 Retiree Med/OPEB 16,078               33,389                   32,337                   33,057                   (332)                 (1%) 6 Misc. Benefits 88,845               86,509                   88,336                   90,470                   3,960               5% 7 Subtotal 2,229,925      2,290,052         2,222,906         2,518,456                   10% 228,404 Non‐Personnel
8 Legal Services 241,931             175,000                124,955                356,666                181,666           104% 9 Engineering Services 184,173             128,750                125,000                128,750                ‐                        0% 10 Professional Services 1,175,257          817,067                712,318                740,714                (76,353)            (9%) 11 Prof. Memberships 50,537               54,752                   55,749                   57,421                   2,669               5% 12 Insurance Premiums 125,690             127,386                108,789                112,053                (15,334)            (12%) 13 Misc. Expenses 120,677             68,457                   106,104                92,354                   23,897             35% 14 Utilities 575,612             663,814                687,214                707,831                44,017             7% 15 Travel & Training 30,018               41,382                   15,919                   16,397                   (24,985)            (60%) 16 Equipment Rental 88,388               98,101                   7,069                     7,281                     (90,820)            (93%) 17 Bldg & Maint Services 154,178             205,971                86,638                   187,890                (18,081)            (9%) 18 Chemicals 290,207             287,048                400,111                412,114                125,066           44% 19 Permits & Licenses 45,462               45,372                   49,314                   51,777                   6,406               14% 20 Supplies 85,203               128,681                65,262                   67,220                   (61,461)            (48%) 21 Equipment 20,983               24,216                   17,071                   17,583                   (6,633)              (27%) 22 Infrastructure 1,407,212          3,009,397             2,209,676             3,500,000             490,603           16% 23 Claims/Penalties 23,729               15,000                   78,000                   80,340                   65,340             436% 24 Repairs & Maintenance ‐                          150,179                86,050                   150,179                (0)                      (0%) 25 Subtotal 4,619,255      6,040,574         4,935,239         6,686,570                   11% 645,996 26 TOTAL 6,849,180      8,330,626         7,158,145         9,205,026         874,401       10% CHANGE FROM
FY 2022/23 ADOPTED
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Key Changes
Assessments reflect increased funding for infrastructure projects, maintenance, staff $ 914,061 TOTAL GENERAL OPERATING REVENUE BUDGET INCREASE $ 914,061

FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
26 JPA Assessments 7,263,546          8,195,626             8,             9, 195,626             109,686           11% 914,061 27 Contract Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 28 NDWSCP Fees 37,288               115,000                45,340                   45,340                   (69,            (61%) 660) 29 Misc. Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 30 Interest Earnings 13,701               20,000                   50,965                   50,000                   30,000             150% 31 Misc. Revenue ‐                          ‐                              ‐                              ‐                              ‐                        ‐ 32 From/(To) Reserves ‐                          ‐                              ‐                              ‐                              ‐                        ‐ ‐ ‐
33 TOTAL      8,330,626 7,314,535         8,291,931         9,205,026                   10% 874,401 By Agency:
34 Half Moon Bay 4,241,911          4,871,480             4,             5, 871,480             602,457           15% 730,977 35 Granada CSD 1,489,027          1,630,110             1,             1, 630,110             735,395           6% 105,285 36 Montara WSD 1,532,608          1,694,036             1,             1, 694,036             77,798 771,834             5% 37 TOTAL 7,263,546      8,195,626         8,195,626         9,109,686         914,061       11% CHANGE FROM
FY 2022/23 ADOPTED
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FINANCIAL DETAILS
The following is a list of key budget lines for FY2022/23 and 2023/24 budgets with brief explanations of the changes from year to year. This is a “budget to budget” comparison and does not necessarily represent current expenditures. Underlined items indicate a budget change in excess of $10,000 year to year.

Budget Line # FY 2021/22 FY 2022/23

1. Wages $1,537,386 $1,724,516
Increase as results of COLA increase and staffing
changes.

2. Premium Pay $113,626 $98,182
Overtime paid for staff to perform tasks outside of
normal work times.

3. Health Benefits $265,562 $289,472
The cost of medical, dental, and vision benefits
provided to employees based on the MOU and
Unrepresented Employees.

4. Retirement Contributions $253,580 $282,760
SAM pays the employer contribution to CalPERS for
retirement benefits in compliance with PEPRA.

5. Retiree Medical/OPEB $33,389 $33,057
Includes contributions to a Health Retirement Account
for future retirees as well as current retiree medical
premiums.

6. Misc. Benefits $86,509 $90,470
Includes Medicare, long-term and short-term disability, workers compensation, and matching funds to a 457
plan.

7. Personnel Subtotal
Subtotal of all wage and benefit costs.
$2,290,052 $2,518,456

8. Legal Services $175,000 $356,666
Includes general counsel and employment
legal fees

9. Engineering Services
Increased to provide design and project
$128,750 $128,750
management related to treatment division.
231
Budget Line # FY 2021/22 FY 2022/23

10. Professional Services $817,067 $740,714
Includes ongoing services that are specialized and
need to be performed by consultants rather than staff.

11. Professional Memberships $54,752 $47,421
Includes memberships in professional organizations for
SAM and employees that keeps them current in
industry practices and improves how SAM serves the
community.

12. Insurance Premiums $127,386 $112,053
Property, liability, and pollution premiums based on
utilization rates.

13. Misc. Expenses $68,457 $95,354
Includes incidental expenses (uniforms laundry
services, radio and alarm systems, offsite storage,
postage, claims, copier, phone system support, etc.)
not reflected in other categories.

14. Utilities $663,814 $707,831
Electricity, water, telephone, solid waste, etc.

15. Travel & Training $41,382 $16,397
Training and travel related costs for attendance at
industry conferences and seminars, and other related
events to allow staff to keep current on technical skills and industry best practices.

16. Equipment Rental/Lease $98,101 $7,281
Short-term rental or lease of equipment (generators,
storage tanks, etc.).

17. Building & Maintenance Services $205,971 $187,890
Includes janitorial, landscaping, and other regular
building maintenance services.

18. Chemicals
Includes chemicals used in the treatment of wastewater
$287,048 $412,114
to meet regulatory standards.

Budget Line # FY 2022/23 FY 2023/24
232

19. Permits & Licenses
Annual costs for permits with local, regional and state agencies.
$45,372 $51,777

20. Supplies
Office, computer, breakroom, and safety supplies.
$128,681 $67,220

21. Equipment Purchase
Purchase of equipment use at SAM facilities not
included in infrastructure projects.
$24,216 $17,583

22. Infrastructure Projects
Includes costs of projects included in 5-Year CIP.

Includes engineering costs associated. Includes
costs associated with projects that exceed $50,000
each.
$3,009,397 $3,500,000

23. Claims/Penalties
Reflects claims expenses not covered by insurance.
$15,000 $80,340

24. Repairs & Maintenance
Maintenance for plant equipment
$150,179 $150,179

25. Non-Personnel Subtotal
Subtotal of all costs not associated with wages and
benefits.
$6,040,574 $6,686,570

26. Total
Total of all costs (sum of Personnel and Non-Personnel
subtotals).
$8,330,626 $9,205,026

233

ADMINISTRATIVE SERVICES
By Category
FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages 543,861             515,459                568,265                587,126                71,667             14% 2 Premium Pay 2,816                  4,290                     3,500                     5,815                     1,525               36% 3 Health Benefits 61,713               58,408                   60,977                   62,307                   3,899               7% 4 Retirement Cont. 10,209               49,483                   49,679                   60,158                   10,675             22% 5 Retiree Med/OPEB 38,374               16,348                   17,067                   16,728                   380                   2% 6 Misc. Benefits 21,935               20,705                   25,576                   18,642                   (2,062)              (10%) 7 Subtotal 678,909                   664,693            750,777 725,064                        13% 86,084 Non‐Personnel
8 Legal Services 241,931             175,000                124,955                356,666                181,666           104% 9 Engineering Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 10 Professional Services 226,656             200,411                169,935                192,280                (8,131)              (4%) 11 Prof. Memberships 38,950               39,509                   41,757                   43,009                   3,500               9% 12 Insurance Premiums 125,690             127,386                108,789                112,053                (15,334)            (12%) 13 Misc. Expenses 34,263               32,163                   56,181                   40,933                   8,770               27% 14 Utilities 37,379               36,569                   37,499                   38,624                   2,055               6% 15 Travel & Training 3,622                  8,892                     3,099                     3,191                     (5,701)              (64%) 16 Equipment Rental 6,599                  6,426                     7,069                     7,281                     855                   13% 17 Bldg & Maint Services 39,844               22,561                   28,264                   29,112                   6,551               29% 18 Chemicals ‐                          ‐                              ‐                              ‐                              ‐                        0% 19 Permits & Licenses ‐                          ‐                              ‐                              ‐                              ‐                        0% 20 Supplies 8,340                  10,583                   8,342                     8,593                     (1,990)              (19%) 21 Equipment ‐                          ‐                              ‐                              ‐                              ‐                        0% 22 Infrastructure ‐                          ‐                              ‐                              ‐                              ‐                        0% 23 Claims/Penalties 23,729               15,000                   ‐                              ‐                              (15,000)            (100%) 24 Repairs & Maintenance ‐                          ‐                              ‐ 25 Subtotal 787,001                   674,502            831,743 585,891                      23% 157,241 26 TOTAL 1,465,910      1,339,194         1,         1,582,520 310,955         243,326       18% CHANGE FROM
FY 2022/23 ADOPTED
234

ADMINISTRATIVE SERVICES
By Category
Assessments reflect net increase in budget for wages, benefits, and other expenses $ 213,326 TOTAL ADMINISTRATION REVENUE BUDGET INCREASE $ 213,326
Key Changes
Personnel costs: net increase due COLA and merit increases. Amount also includes Board stipend and Holiday pay which had been omitted in previous years. $ 86,084 Legal Services $ 181,666
Insurance Premiums: Decreased based on year-to-date actuals $ (15,334) Claims/Penalties $ (15,000)
All other operating expenses: net increase due to CPI and adjustments to other operating expenses $ 5,909 TOTAL ADMINISTRATION EXPENDITURES BUDGET INCREASE $ 243,326 Key Changes
FY 2020/21
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
27 JPA Assessments 1,259,899          1,319,194             1,319,194             1,532,520             213,326           16% 28 Contract Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 29 NDWSCP Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 30 Misc. Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 31 Interest Earnings 13,701               20,000                   50,965                   50,000                   30,000             150% 32 Misc. Revenue ‐                          ‐                              ‐                              ‐                              ‐                        0% 33 From/(To) Reserves ‐                          ‐                              ‐                              ‐                              ‐                        0% ‐ ‐
34 TOTAL      1,339,194 1,273,600         1,370,159         1,582,520                   18% 243,326 By Agency:
34 Half Moon Bay 735,781                            755,361 784,129                942,500                158,371           20% 35 Granada CSD 258,279             262,388                290,458                291,945                29,557             11% 36 Montara WSD 265,839             272,677                289,605                298,075                25,398             9% 37 TOTAL 1,259,899      1,319,194         1,335,424         1,532,520         213,326       16% CHANGE FROM
FY 2022/23 ADOPTED
235

TREATMENT
By Category
Key Changes
Personnel: net increase due to COLA and merit increases $ 140,987 Professional Services: $ (68,222)
Utilities: $ 41,962
Equipment Rental
Chemicals
Claims/Penalties
$ (91,675)
$ 126,288
$ 80,340
Increase services, supplies, chemicals, etc. by 3% CPI $ (76,973) TOTAL TREATMENT EXPENDITURES BUDGET INCREASE $ 152,706
FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages 862,052                           983,383                1,098,699 873,788                       12% 115,316 2 Premium Pay 122,060                            93,636 107,492                   90,446                   (17,            (16%) 046) 3 Health Benefits 169,897                           201,593                221,245 206,836                19,653             10% 4 Retirement Cont. 289,780                           191,792                209,980 190,159                18,187             9% 5 Retiree Med/OPEB (21,420)              16,459                   14,695                   15,743                   (                 (4%) 716) 6 Misc. Benefits 64,658               63,744                   60,749                   69,336                   5,593               9% 7 Subtotal 1,487,028      1,         1,439,863 564,462         1,         705,449           9% 140,987 Non‐Personnel
8 Legal Services ‐                          ‐                              ‐                              ‐                              ‐ 9 Engineering Services 178,966                           128,750                128,750 125,000                ‐                        0% 10 Professional Services 741,528                           466,656                398,434 463,131                (68,            (15%) 222) 11 Prof. Memberships 11,587               15,243                   13,992                   14,412                   (                 (5%) 831) 12 Insurance Premiums ‐                          ‐                              ‐                              ‐                              ‐ 13 Misc. Expenses 79,314               36,294                   49,923                   51,421                   15,127             42% 14 Utilities 538,233                           627,245                669,206 649,715                41,962             7% 15 Travel & Training 26,214               32,303                   12,631                   13,010                   (19,            (60%) 293) 16 Equipment Rental 81,789               91,675                   ‐                              ‐                              (91,            (100%) 675) 17 Bldg & Maint Services 114,335                            58,374 183,410                   158,778                (24,            (13%) 631) 18 Chemicals 285,382                           282,740                409,027 397,114                          45% 126,288 19 Permits & Licenses 45,462               45,372                   49,314                   51,777                   6,406               14% 20 Supplies 56,439               93,366                   43,674                   44,984                   (48,            (52%) 382) 21 Equipment 16,368               14,710                   9,071                     9,343                     (5,              (36%) 368) 22 Infrastructure ‐                          ‐                              ‐                              ‐                              ‐ 23 Claims/Penalties ‐                          ‐                              78,000                   80,340                   80,340 24 Repairs & Maintenance 150,179                86,050                   150,179                (0)                      (0%) 25 Subtotal 2,175,617      2,         2,035,988 167,942         2,         179,661             1% 11,719 26 TOTAL 3,662,645      3,         3,475,851 732,405         3,         885,111       4% 152,706 CHANGE FROM
FY 2022/23 ADOPTED
236

TREATMENT
By Category
Assessments reflect net increased funding for wages, benefits, and other expenses $ 222,366 TOTAL TREATMENT REVENUE BUDGET INCREASE $ 222,366

Key Changes
FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
27 JPA Assessments 3,342,060          3,617,405             3,617,405             3,839,771             222,366           6% 28 Contract Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 29 NDWSCP Fees 37,288               115,000                45,340                   45,340                   (69,660)            (61%) 30 Misc. Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 31 Interest Earnings ‐                          ‐                              ‐                              ‐                              ‐                        0% 32 Misc. Revenue ‐                          ‐                              ‐                              ‐                              ‐                        0% 33 From/(To) Reserves ‐                          ‐                              ‐                              ‐                              ‐                        0% 34 TOTAL      3,732,405 3,379,348         3,662,745         3,885,111                   4% 152,706 By Agency:
34 Half Moon Bay 1,951,763                      2,161,703 2,150,185             2,361,459             211,274           10% 35 Granada CSD 685,122             719,502                831,237                731,476                11,975             2% 36 Montara WSD 705,175             747,718                828,795                746,835                (882)                 (0%) 37 TOTAL 3,342,060      3,617,405         3,821,735         3,839,771         222,366       6% CHANGE FROM
FY 2022/23 ADOPTED
237

ENVIRONMENTAL COMPLIANCE
By Category

Key Changes
Professional services: increase based on year-to-date actual $ (11,089) Net increase in wages, utilities, services, and supplies $ (1,153) TOTAL ENVIRONMENTAL COMPLIANCE EXPENDITURES BUDGET $ (12,234) FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages 36,709               38,543                   36,268                   38,690                   147                   0% 2 Premium Pay 1,746                  1,844                     1,830                     1,922                     78                     4% 3 Health Benefits 5,357                  5,561                     5,098                     5,919                     358                   6% 4 Retirement Cont. 18,800               12,305                   12,198                   12,622                   317                   3% 5 Retiree Med/OPEB (875)                    582                        575                        586                        4                       1% 6 Misc. Benefits 2,252                  2,061                     2,011                     2,491                     430                   21% 7 Subtotal 63,988           60,897              57,979              62,230                            2% 1,333 Non‐Personnel
8 Legal Services ‐                          ‐                              ‐                              ‐                              ‐                        ‐ 9 Engineering Services ‐                          ‐                              ‐                              ‐                              ‐                        ‐ 10 Professional Services 207,073                            79,251 150,000                                  ‐ 150,000                        0% 11 Prof. Memberships ‐                          ‐                              ‐                              ‐                              ‐                        0% 12 Insurance Premiums ‐                          ‐                              ‐                              ‐                              ‐                        0% 13 Misc. Expenses 7,100                  ‐                              ‐                              ‐                              ‐                        0% 14 Utilities ‐                          ‐                              ‐                              ‐                              ‐                        0% 15 Travel & Training 182                     187                        190                        196                        8                       4% 16 Equipment Rental ‐                          ‐                              ‐                              ‐                              ‐                        0% 17 Bldg & Maint Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 18 Chemicals 4,825                  4,308                     2,997                     3,087                     (1,              (28%) 221) 19 Permits & Licenses ‐                          ‐                              ‐                              ‐                              ‐                        0% 20 Supplies 20,424               24,732                   13,246                   13,643                   (11,            (45%) 089) 21 Equipment 4,614                  9,505                     8,000                     8,240                     (1,              (13%) 265) 22 Infrastructure ‐                          ‐                              ‐                              ‐                              ‐                        0% 23 Claims/Penalties ‐                          ‐                              ‐                              ‐                              ‐                        0% 24 Repairs & Maintenance ‐                          ‐                              ‐                              ‐ 25 Subtotal 244,218                    103,684 188,733                      175,166            (7%) (13,567) 26 TOTAL 308,206                    161,663 249,630                       (12, 237,396        234) (5%) CHANGE FROM
FY 2022/23 ADOPTED
238

ENVIRONMENTAL COMPLIANCE
By Category
Assessments reflect net decreased funding for wages, benefits, and other expenses $ (12,234) TOTAL ENVIRONMENT COMPLIANCE REVENUE BUDGET DECREASE $ (12,234)

Key Changes
FY 2020/21
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
27 JPA Assessments 183,267             249,630                249,630                237,396                (12,234)            (5%) 28 Contract Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 29 NDWSCP Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 30 Misc. Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 31 Interest Earnings ‐                          ‐                              ‐                              ‐                              ‐                        0% 32 Misc. Revenue ‐                          ‐                              ‐                              ‐                              ‐                        0% 33 From/(To) Reserves ‐                          ‐                              ‐                              ‐                              ‐                        0% 34 TOTAL         249,630 183,267            249,630            237,396                       (5%) (12,234) By Agency:
34 Half Moon Bay 107,028                            153,522 148,380                145,998                (2,381)              (2%) 35 Granada CSD 37,570               49,651                   47,555                   45,224                   (4,427)              (9%) 36 Montara WSD 38,669               51,598                   48,553                   46,173                   (5,425)              (11%) 37 TOTAL 183,267         249,630            249,630            237,396            (12,234)        (5%) CHANGE FROM
FY 2022/23 ADOPTED
239

INFRASTRUCTURE

By Category
Key Changes
Increased to address the projects identified in the approved FY2023-24 capital improvement plan budget, including engineering costs TOTAL INFRASTRUCTURE REVENUE BUDGET INCREASE $ 490,603

FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

EXPENDITURES
Personnel
1 Wages ‐                          ‐                              ‐                              ‐                              ‐                        0% 2 Premium Pay ‐                          ‐                              ‐                              ‐                              ‐                        0% 3 Health Benefits ‐                          ‐                              ‐                              ‐                              ‐                        0% 4 Retirement Cont. ‐                          ‐                              ‐                              ‐                              ‐                        0% 5 Retiree Med/OPEB ‐                          ‐                              ‐                              ‐                              ‐                        0% 6 Misc. Benefits ‐                          ‐                              ‐                              ‐                              ‐                        0% 7 Subtotal ‐                     ‐                        ‐                        ‐                                               0% ‐ Non‐Personnel 0%
8 Legal Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 9 Engineering Services 5,207                  ‐                              ‐                              ‐                              ‐                        0% 10 Professional Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 11 Prof. Memberships ‐                          ‐                              ‐                              ‐                              ‐                        0% 12 Insurance Premiums ‐                          ‐                              ‐                              ‐                              ‐                        0% 13 Misc. Expenses ‐                          ‐                              ‐                              ‐                              ‐                        0% 14 Utilities ‐                          ‐                              ‐                              ‐                              ‐                        0% 15 Travel & Training ‐                          ‐                              ‐                              ‐                              ‐                        0% 16 Equipment Rental ‐                          ‐                              ‐                              ‐                              ‐                        0% 17 Bldg & Maint Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 18 Chemicals ‐                          ‐                              ‐                              ‐                              ‐                        0% 19 Permits & Licenses ‐                          ‐                              ‐                              ‐                              ‐                        0% 20 Supplies ‐                          ‐                              ‐                              ‐                              ‐                        0% 21 Equipment ‐                          ‐                              ‐                              ‐                              ‐                        0% 22 Infrastructure 1,407,212          3,009,397             2,209,676             3,500,000             490,603           16% 23 Claims/Penalties ‐                          ‐                              ‐                              ‐                              ‐                        0% 24 Repairs & Maintenance ‐
25 Subtotal 1,412,419      3,009,397         2,         3, 209,676         500,000           16% 490,603 26 TOTAL 1,412,419      3,009,397         2,         3, 209,676         490,603 500,000       16% CHANGE FROM
FY 2022/23 ADOPTED
240

INFRASTRUCTURE
By Category
Key Changes
Increased to address the projects identified in the approved FY2023-24 capital improvement plan budget, including engineering costs TOTAL INFRASTRUCTURE REVENUE BUDGET INCREASE $ 490,603

FY 2021/22
ACTUAL
FY 2022/2023

ADOPTED
FY 2022/23

PROJECTED
FY 2023/24

PROPOSED

REVENUE
By Type:
27 JPA Assessments 2,478,320          3,009,397             3,009,397             3,500,000                       16% 490,603 28 Contract Services ‐                          ‐                              ‐                              ‐                              ‐                        0% 29 NDWSCP Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 30 Misc. Fees ‐                          ‐                              ‐                              ‐                              ‐                        0% 31 Interest Earnings ‐                          ‐                              ‐                              ‐                              ‐                        0% 32 Misc. Revenue ‐                          ‐                              ‐                              ‐                              ‐                        0% 33 From/(To) Reserves ‐                          ‐                              ‐                              ‐                              ‐                        0% ‐
34 TOTAL      3,009,397 2,478,320         3,009,397         3,500,000                   16% 490,603 By Agency:
34 Half Moon Bay 1,447,339                      1,447,339 1,788,786             2,152,500                       20% 363,714 35 Granada CSD 508,056             598,569                508,056                666,750                68,181             11% 36 Montara WSD 522,926             622,042                522,926                680,750                58,708             9% 37 TOTAL 2,478,320      3,009,397         2,478,320         3,500,000         490,603       16% CHANGE FROM
FY 2022/23 ADOPTED
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HIGHLIGHTS
 Infrastructure Projects in progress in FY 2021/22:
 Montara PS - Replace Pump 1
 Montara PS - Install Grit Removal
 Rehabilitate/Replace Vehicle Fleet
 Portola PS - Replace Pump 1 with Grinder Pump
 Replace Bar Screen Drives and Screens
 Replace Influent Pump and Motors 1 – 5
 Electrical Improvements for Influent Pumps 1 – 8
 Install Shade Canopy at Chemical Feed Pumps
 Replace Effluent Pumps 1 and 2
 Replace Sludge Mixing Pumps 1 and 2 with Chopper Pumps  Infrastructure Projects in progress in FY 2022/23:
 Princeton PS - Replace w/Package PS and Rehabilitate Bypass System  Replace Effluent Pumps 1, 2 & 3
 Plant and Cyber Security Measures Implementation
 Replace Chain & Flights, Collectors Gear Reducer, and Weirs in Primary Clarifier  Replace Primary Scum Pump and Motor
 Replace Grit Pumps 1 & 2 and Appurtenances
 Replace Primary Sludge Pumps and Motors 1, 2 & 3
 Secondary Treatment - Replace/Rehabilitate Secondary Clarifier Drive Mechanism
 Water Supply and Piping - Replace No. 3 Water Pumps
 These projects are in various stages- order placed, awaiting deliveries, or awaiting order placement. There has been a delay in deliveries and cost increases too due to the pandemic situation.

242

SEWER AUTHORITY MID-COASTSIDE

CAPITAL IMPROVEMENT PROGRAM
Project 1: Montara Force Main Rehabilitation
Priority: Rehabilitation/Replacement/Safety
The Montara Force Main Rehabilitation (MFM) Project addresses aging, at-risk pipeline within the Intertie Pipeline System. The MFM conveys wastewater from the Montara and Moss Beach communities to SAM’s Wastewater Treatment Plant in Half Moon Bay. The MFM is approximately 16,750 feet in length, ranging from 12 to 14-inches in diameter and was constructed of ductile iron pipe (DIP) in the early 1980s.

A 2017 project replaced the first 2,500 feet of MFM from Montara Pump Station to the end of Vallemar Street with high-density polyethylene (HDPE) pipe and replaced the associated air/vacuum relief valves. A 12-inch-diameter DIP portion of the MFM experienced failure during the atmospheric river storm that started on December 31, 2022, which was declared as a disaster at both the State and Federal levels. SAM’s emergency response included replacement of an 850-ft portion of the impacted force main with HDPE. It is proposed to replace the remaining 13,400 feet of the MFM project over four years starting from July 2023 to June 2027. The proposed $2.0M for the fiscal year 23-24 entails Planning, Environmental, Legal & Admin costs of $1.5M and Design costs of $0.5M.

CIP Total Cost: $10,686,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.

Basis of Priority: This priority project continues the best practice of rehabilitating aging force main to mitigate sanitary sewer overflows, human health risks, environmental damages, and other regulatory violations.

Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$10.686M $2.0M $3.0M $3.0M $2.686 $0
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SEWER AUTHORITY MID-COASTSIDE

CAPITAL IMPROVEMENT PROGRAM
Project 2: Replacement/Rehabilitation of Boilers at the Treatment Plant Priority: Rehabilitation/Replacement/Safety
SAM has two (2) Dual Gas Hot Water Boilers. They provide heat to keep the Digester Sludge at a constant temperature between 95.0 to 96.0 degrees Fahrenheit. This allows the microbes that break down the fecal matter to function properly. If we do not supply the boilers with either Digester Gas or Natural Gas we will not be in compliance with our NPDES permit, which will lead to violations and penalties.

Boiler # 1 is out of compliance and Boiler #2 is barely below the acceptable limit.

The proposed $0.5M is to replace one of the boilers and refurbish the other.

CIP Total Cost: $500,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.

Basis of Priority: This priority project continues the best practice of rehabilitating aging equipment to mitigate regulatory violations.

Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$0.5M $0.5M $0 $0 $0 $0
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CAPITAL IMPROVEMENT PROGRAM
Project 3: WWTP – Replace Emergency Generator
Priority: Replacement and Rehabilitation
This project focuses on replacing the emergency generator at the WWTP. The existing generator is old, has exceeded its useful life, and replacement parts are becoming difficult to obtain. The backup power generator is an essential asset that must be reliable. In the event of a power loss to the WWTP, the generator provides temporary power so that operation of the WWTP may continue. Frequent repairs are being done to make it functional. Therefore, it is more economical to procure a new generator.

CIP Total Cost: $1,500,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.

Basis of Priority: This generator needs to be maintained in peak stand-by condition in the event of a power failure at the WWTP. A prolonged power outage, without a reliable and sufficient back-up power supply, will result in significant disruption to the plants, clarification, biological treatment, and disinfection processes that may result in a violation of SAM’s NPDES permit requirements.

Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$1.5M $1M $0.5M $0 $0 $0
245
Position Control List
Classifications Authorized
Positions
Administrative Services:

General Manager 1.0
Finance Officer
Accounting Technician

1.0 1.0
Administrative Assistant 1.0

4.0 Operations & Maintenance:

Engineering & Construction Contracts Manager (Defunded) Supervisor of Treatment / Field Operations

0.0 0.75
Maintenance Mechanic I/II/III 2.0
Operator I/II/III 2.0
Lead Operator 4.0
Utility Worker (Defunded) 0.0

8.75 Environmental Compliance:

Supervisor of Treatment / Field Operations .25
Total Authorized – General Budget 13.0
Collection Services:

Collection Maintenance Worker I/II/III 3.0
Maintenance Mechanic I/II/III 1.0
Total Authorized – Collections Services 4.0
Grand Total Authorized Authority 17.0
246

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 20, 2023
TO: Honorable Mayor and City Council
FROM: Matthew Chidester, City Manager
VIA: Lisa Lopez, Administrative Services Director
Kenneth Stiles, Finance Manager
Bryan Lopez, Senior Management Analyst
TITLE: FISCAL YEAR 2023-2024 RECOMMENDED BUDGET
______________________________________________________________________________ RECOMMENDATION:

Review the Recommended FY 2023-24 Budget document and adopt resolutions to: 1) establish the GANN Appropriation Limit for FY 2023-24; 2) approve the City’s Review of the Investment Policy; and 3) adopt the FY 2023-24 Annual Operating and Capital Budget.

FISCAL IMPACT:

The Fiscal Year 2023-24 recommended General Fund operating budget expenditures are $22,183,173 plus $2,763,000 in capital transfers, for total expenditure budget of $24,946,173. The FY 2023-24 Other Funds expenditures totals $38,471,863. The total One-Year Capital Improvement Plan (CIP) Budget is $20.8 million.

STRATEGIC ELEMENT:

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

BACKGROUND:

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

DISCUSSION:

The City Council was presented with the FY 2023-24 Recommended Budget and One-Year Capital Improvement Plan (CIP) on June 6, 2023 (Draft FY 2023-24 CIP). The Council conducted a hearing and provided staff direction to return to the June 20, 2023, Council meeting with a final version of the Recommended Budget for adoption.
247

The final version of the attached recommended budget includes one minor change than the budget presented on June 6th. Staff is recommending reclassification of two positions and is bringing a separate action to Council to effectuate the changes. These changes result in savings of approximately $63 thousand in FY 2023-24. Council did not direct staff to make any other changes to the recommended budget.

On June 13, 2023, the Planning Commission determined, as required by State statute, that the projects included in the Recommended Capital Budget for FY 2023-24 are consistent with the City’s General Plan.

CONCLUSION:

The FY 2023-24 Recommended Budget is a balanced budget that reflects the priorities of the City Council and needs of the community. Through careful, conservative fiscal management, the City is able to maintain existing services while also planning for a potential downturn in the economy, and other challenges in the future.

ATTACHMENTS:

1. FY 2023-24 Recommended Operating and Capital Budgets (posted online only)

2. City Manager’s Budget Message

3. Resolution Adopting the FY 2023-24 Annual Operating and Capital Budget

4. Resolution Establishing GANN Appropriation Limit for FY 2023-24

5. Resolution Approving the City’s Investment Policy (No change for FY 2023-24) 248
City of Half Moon Bay City Hall
501 Main St.

Half Moon Bay, CA 94019
June 20, 2023
Honorable Mayor, City Councilmembers and Community,
On behalf of City staff, it is my privilege to present the Recommended Operating Budget for Fiscal Year (FY) 2023-24. The Recommended Budget is a statement of the City’s current financial position, a tool that projects future revenue and expenditures, and a work plan for communicating, implementing, and monitoring City operations, capital expenditures and Council priorities.

This past fiscal year has been a time of transition for the City of Half Moon Bay – we’ve transitioned from a pandemic response and recovery to working towards long-term stability and sustainability as an organization and community; we’ve transitioned staff leadership throughout the organization, and as a community we’ve transitioned from a place of innocence and isolation to experiencing significant trauma on an international stage. There is really no way to describe the first several months of 2023. From the relentless rains, wind and flooding to the tragic mass shooting incident on January 23rd, our community, staff, and resources have been tested. Each time we answered the call and proved why Half Moon Bay is such a special place to “live, work, and play”.

The budget we present to you is balanced, but our financial outlook is not as strong as it has been in the past. There is significant political and economic uncertainty at the local, state and national levels, which will affect our costs and approaches to delivering services in the years ahead. This will be a year to focus on defining our core mission and values, seeking efficiencies and better practices, and ensuring that the city remains financially secure to continue serving the community for future generations. As you have observed and will see below, we have a strong team that is up to the challenge, and committed to remaining innovative, effective, and providing the highest quality services to our residents, businesses and visitors.

PRIOR YEAR ACCOMPLISHMENTS
Despite the challenges we’ve faced over the last several months, which brought new needs to light and added to an already heavy workload, staff maintained high levels of service across our core work areas. Additionally, staff continued to implement the Council’s FY 2022-23 Priorities, making significant progress on the adopted priorities workplan. Some of our key accomplishments are summarized below:
• Submitted the draft Cycle 6 (2023-2031) Housing Element to the State Department of Housing and Community Development, following extensive public review and comment. • Entered into a predevelopment funding agreement with Mercy Housing to develop 40 very affordable housing units on City-owned property at 555 Kelly Avenue and initiated work on a 249
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Half Moon Bay, CA 94019
potential 40-to-50-unit affordable housing project at 880 Stone Pine Road in collaboration with San Mateo County.
• Obtained Coastal Commission approval and certification of the City’s Short-Term Rental Ordinance.
• Made significant progress on implementation of several of the Coastside Recovery Initiative’s recommendations, including securing $400,000 in philanthropic funding for a farmworker cooperative and digital equity programming, $2.5 million in funding for a new Opportunity Center of the Coastside that will serve job seekers, small businesses, and entrepreneurs, and launched a nonprofit cohort which provided technical assistance to City grant recipients in support of a more coordinated and integrated approach to safety net services. • Completed the draft Climate Action Plan, which included several public outreach events to engage with underrepresented groups and circulated the draft to the general public for input prior to formal adoption.
• Completed the pilot phase of the Crisis Assistance Response & Evaluation Services (CARES) mental health response program; applied for and awarded a $150,000 grant as well as applied for an additional $360,000 in grant assistance for the coming fiscal year. • Initiated construction of the Carter Park Improvement Project, including securing of temporary access and permanent maintenance/operation access to the park and revision of designs to be more flood resilient.
• Conducted the November 2022 General Municipal Election for three district seats including public outreach campaigns around the new 503B district map, how to run for city council, how to vote, and hosted the first Elections Night Out event since the pandemic began. • Initiated work on a cost allocation study and user fee analysis to ensure the city receives fair cost recovery on services provided to the public and other agencies. • Continued work on a major upgrade and modernization of the City Corporation Yard facility at 880 Stone Pine Road.
• Conducted the first N.E.T. Citizens Academy since the pandemic began, graduating 18 new cohort members.
• Responded to the catastrophic winter storms that impacted the entire Coastside community, including 24/7 staffing of the Emergency Operations Center, coordinating multi-agency communications to ensure accurate and timely information to the public, and converting the community center into a temporary evacuation point for displaced residents. • Responded to the tragic mass shootings including coordinating press requests, visits and press conferences with state and federal elected officials, coordinating vigil and memorial services, and a community remembrance dinner for the victims, partnered with the County and other agencies to address code violations at the two farms involved in the shooting and to establish a program for inspecting other farms to ensure farmworker safety, collaborated in intensive 250
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Half Moon Bay, CA 94019
case management including coordination of housing for 20 displaced families, and established the Coastside Victims Fund for survivors of the incident. • Hosted a historic mobile visit from the Consulate of Mexico resulting in 220 residents receiving critical services.

FY 2023-24 COUNCIL PRIORITIES
Consistent with the past several years, in preparation for the upcoming budget the City Council hosted three community listening sessions, which provided the Council and staff the opportunity to listen directly to members of the community and gain additional insight into the community’s priorities for the allocation of resources over the next year and beyond. Feedback was also collected through other means, including an online survey on the City’s website.

The listening sessions culminated in a priority setting workshop on April 19, 2023. At this workshop, the City Council confirmed the following five broad priorities, which were carried forward from the previous year:
• Affordable Housing
• Public Health, Safety and Emergency Preparation
• Community and Climate Resilience and Sustainability
• Economic Recovery and Development
• Transportation, Circulation and Mobility
On June 6, 2023, staff presented a multi-year work plan that includes aggressive but realistic programs, projects, and tasks aligned with the five priorities. The Recommended Budget includes numerous funding allocations that will support implementation of this workplan over the coming fiscal year.

BUDGET AT A GLANCE
The City’s total estimated revenue for all funds for FY 2023-24 is $50.9 million. This amount represents an 8.6% increase from FY 2022-23. This is primarily due to an increase in special revenue funding of a $2.5 million grant for the Opportunity Coastside Center and other grants for capital projects.

General Fund revenues are approximately 41.7% percent of total revenues, and the primary three sources of General Fund revenues are Property Tax, Sales Tax, and Transient Occupancy Tax (TOT), as seen on the pie chart below. As economic activity is expected to stagnate, these primary three sources are expected to decrease by approximately 1% from FY 2022-23. These projections are based on staff analysis of local conditions and reflect information received from several sources, including the City’s Sales and Transient Occupancy Tax consultants. The total decrease of general fund revenues from the 251
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Half Moon Bay, CA 94019
year prior is 8%, mostly due to the discontinuance of ARPA funding received from the Federal Government in the past two years.

The City’s total proposed budget expenditures for FY 2023-24 are $63.4 million, which represents an

11.2% increase over FY 2022-23. This increase is primarily due to increased spending with special revenue funds and capital projects. Capital improvements are approximately 33% of total expenditures, or $20.8 million. The General Fund accounts for 39% of the budget, and of these expenditures, the largest departmental budget is for public safety, as shown in the pie chart on the following page.

Fund Name Actual
2020-21
Actual
2021-22
Revised
2022-23
Recommended
2023-24
General Fund 16,601,802 24,534,744 23,075,847 21,259,541 Enterprise Funds 5,872,894 6,689,682 8,936,201 7,740,674 Special Revenue and Capital Projects 13,802,035 7,066,213 12,410,947 19,651,512 Internal Service Funds 1,933,311 2,282,530 2,459,447 2,284,008 Debt Service 337 (180) - 100
Grand Totals 38,210,378 40,572,988 46,882,441 50,935,836 Revenues and Transfers All Funds
Property Tax
Sales & Use Tax
Transient
Occupancy Tax
Intergovernmental
Charges for Services
Other Fees & Taxes
Other Revenue

GENERAL FUND REVENUES
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Half Moon Bay, CA 94019
Based on conservative staff assumptions, known future costs, and historical information, we've prepared a five-year forecast for general fund revenues and expenditures. Forecasts are generally used to anticipate any significant fiscal issues in future years. The chart below shows revenues and expenditures during the upcoming five-year period.

Fund Name Actual
2020-21
Actual
2021-22
Revised
2022-23
Recommended
2023-24
General Fund 16,096,447 20,089,107 23,697,444 24,946,173 Enterprise Funds 7,051,945 8,722,888 11,061,171 9,742,851 Special Revenue and Capital Projects 10,053,726 6,378,523 19,548,427 26,051,403 Internal Service Funds 1,807,936 2,056,699 2,698,806 2,677,608 Debt Service 30,000 - - -
Grand Totals 35,040,054 37,247,216 57,005,848 63,418,036 Expenditures and Transfers All Funds
Administrative
Services
6%
Capital Improvements
(CIP)
11%
City Attorney
2%
City
Clerk/Communications
5%
City Council
1%
City Manager
8%
Community
Development
9% Debt Service
Other Operating 3%
Transfers
4%
Public Safety
27%
Public Works
16%
Recreation &
Community Vitality
8%

GENERAL FUND EXPENDITURES BY DEPARTMENT
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Half Moon Bay, CA 94019
Based on the forecast, expenditures will likely exceed revenues in future years, resulting in deficits. If so, these deficits would need to be mitigated by either using unassigned fund balances (savings from the prior year), reserves, making cuts to expenditures, and/or increasing revenues. The chart below details the city’s reserve balances during the same five-year period, including decreasing balances if mitigation of the deficit isn’t addressed through other means. 19 20
21 22
23 24
25 26
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29

MILLIONS
FIVE-YEAR FORECAST: GENERAL FUND

REVENUES AND EXPENDITURES
Revenues Expenditures
-
2 4
6 8
10 12
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
11 8
6 3
1 -1

0.19 0.00

0.00 0.00

0.00 0.00
Millions
FIVE-YEAR FORECAST: GENERAL FUND - FUND BALANCE
Reserves Unassigned
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City of Half Moon Bay City Hall
501 Main St.

Half Moon Bay, CA 94019

BUDGETARY HIGHLIGHTS/SIGNIFICANT CHANGES
• The law enforcement contract with the County Sheriff is estimated to increase by approximately $1.5 million, which is 35% more than FY 2022-23. This increase is the result of the County’s effort to better recover the costs of its contract services to cities and should stabilize following this fiscal year. Staff are working with the Sheriff to minimize impacts on the City’s budget and will return to the Council with more details during the first quarter of FY 2023-24.
• The 911 dispatch contract with the County Department of Public Safety Communications is increasing by $498,000, which almost triples the cost from FY 2022-23. This increase is due to the same changes at the County and should stabilize following this fiscal year. • The CARES program is fully funded for FY 2023-24, with $150,000 from an awarded BHJIS grant and $360,000 in General Funds, which we hope to backfill from the State’s new CRISIS grant program, which will be awarded in August.
• The Community Services Financial Assistance Grant Program continues at the previous year’s $300,000 allocation, as well as continues the cohort approach in response to CRI recommendations.
• $2.7 million from the General Fund has been allocated to capital improvements. This is a $1.4 million decrease from the FY 2022-23 Adopted Budget, reflects the actual work the City anticipates completing this fiscal year, and is focused on ongoing projects, critical work related to traffic, transportation and economic development, and grant funded projects that require a local match.
• Staff levels will remain materially unchanged in this fiscal year – with some positions changing to adapt to the needs of the community, but no significant impact to position counts or costs.
• The Reserve Policy establishes an Operating Reserve at 30% of annual General Fund expenditures, and a Reserve for Economic Uncertainty at 20% of annual General Fund Expenditures. With the approval of this budget, these reserves will remain fully funded at 50% of General Fund operating expenditures. The two reserves are estimated to total $11.1 million, which is a $1.2 million increase over FY 2022-23.

CAPITAL IMPROVEMENT PROGRAM
The Five-Year Capital Improvement Program (CIP) has been updated along with preparation of the operating budget. The CIP document, which is presented separately, is an important element of the City’s budget as it guides the City’s infrastructure and facilities work for current and future efforts to enhance the quality of life and experience of the community. The development of the CIP has also utilized an iterative process. The City Council has seen this plan several times and has offered input 255
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and feedback at each stage, consistently providing guidance with an emphasis on investing in the community through capital improvements.

CONCLUSION
The FY 2023-24 Recommended Budget is a balanced budget that reflects the core services of the City, priorities of the City Council, and needs of the community. This balanced budget is possible due to prudent fiscal policies over the last several years, but fund balances and reserves will not be enough to sustain the City in the future unless revenues increase, or services and expenditures are decreased. A key priority for staff and the Council in the coming fiscal year will be to identify strategies to balance the budget for the future, including additional sources of ongoing revenue, increased pursuit of grants and philanthropic support for community projects and programs, and finding new efficiencies and cutting costs wherever possible. These are all important practices for any organization, but especially now for the City of Half Moon Bay.

For more detailed information than what is stated here, the reader is encouraged to start with the Budget Overview. Departmental budgets follow and are clearly tabbed for ease of finding specific costs and services for each department.

I am pleased to report that the City’s FY 2022-23 Budget received the Excellence Award from the Government Finance Officers Association. This award is presented to cities whose budget documents meet program criteria as a policy document, operational guide, financial plan, and communication device. We believe the FY 2023-24 budget will continue to meet the criteria for this award.

Development of the budget must be completed in a very compressed timeline and is a substantial amount of work for the entire organization. I want to acknowledge Council’s leadership, the department directors and their staff, but especially thank the dedicated budget team who completed this document, which includes Lisa Lopez Rossi, Kenneth Stiles, Bryan Lopez, Raymond Cruz, and Carol Kim.

Respectfully submitted,
Matthew Chidester
City Manager
256
RESOLUTION No. C-2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ADOPTING THE FISCAL YEAR 2023-2024 ANNUAL OPERATING AND CAPITAL BUDGET WHEREAS, the City Council of the City of Half Moon Bay has received and completed its review of the proposed FY 2023-24 Operating and Capital Improvement Program Budgets during the budget hearing held on June 6, 2023 and gave general direction on the recommendations contained therein during a public meeting; and
WHEREAS, the City Council of the City of Half Moon Bay has held a public hearing on June 6, 2023 for consideration of adoption of the proposed FY 2023-24 Operating and Capital Budget; and WHEREAS, the proposed budget was prepared in accordance with the financial policies of the City; and
WHEREAS, the proposed budget is a balanced expenditure plan that ensures the maintenance of adequate reserves during FY 2023-24; and
WHEREAS, in accordance with Section 65103 of the State Government Code, the City’s Planning Commission held a hearing on June 13, 2023, and determined that the Five-Year Capital Improvement Plan is consistent with the City’s General Plan; and WHEREAS, the City of Half Moon Bay now desires to adopt the 2023-24 Fiscal Year Appropriations Limit, Operating and Capital Improvement Program Budgets for FY 2023-24; NOW THEREFORE, the City Council of the City of Half Moon Bay does hereby resolve as follows:

1. The City Council does hereby approve and adopt the City’s budget of $63,418,036, including CIP allocation of $20,845,566, for fiscal year 2023-24 consisting of appropriations, inter-fund transfers and General Fund expenditures of $24,946,173 is set forth within the Fiscal Year 2023-24 Budget.

2. The City Council does hereby approve and adopt the City’s budgeted revenue of $50,935,836 for fiscal year 2023-24 and General Fund revenues of $21,259,541 is set forth within the Fiscal Year 2023-24 Budget.

3. The amount of the 2023-24 Fiscal Year Budget for each account area of the budget may be drawn upon in the form of warrants issued for payment of demands and certified in accordance with the provisions of California Government Code Sections 37208 and 37209.

4. The City Manager is hereby authorized to prepare an administrative budget document which further specifies the accounts for the expenditure of appropriations approved by the City Council and set forth in GANN Appropriation Limit Calculation section. The City Manager shall provide the Council with copies of this budget. 257

5. A copy of the adopted budget, signed by the Mayor and attested to by the City Clerk, shall be kept on file with the City Clerk of the City of Half Moon Bay, as the official budget of the City of Half Moon Bay for the 2023-24 fiscal year.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June, 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
258
RESOLUTION NO. C-2023-

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

ESTABLISHING THE APPROPRIATION LIMIT PURSUANT TO CALIFORNIA CONSTITUTION ARTICLE XIII B, AND SECTION 7900 ET. SEQ OF THE CALIFORNIA GOVERNMENT CODE FOR FISCAL YEAR 2023-24
WHEREAS, Article XIII B is an amendment to the California Constitution placing a restriction on the amount of proceeds of tax revenue which can be appropriated by state and local governments during a fiscal year; and
WHEREAS, the total appropriation subject to limitation shall not exceed the appropriation limit of the City of Half Moon Bay for the prior fiscal year, as adjusted for inflationary and population changes; and
WHEREAS, the City Council is required to elect which adjustment factors will be used to calculate the limit: (1) either the annual growth in California per capita personal income or the growth in nonresidential assessed valuation due to new construction within the City, and (2) either the population growth in the City of Half Moon Bay or population growth in the County of San Mateo, as provided by the State Department of Finance; and
WHEREAS, the City Council has considered the matter at a regular scheduled City Council meeting.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the appropriations limit for the Fiscal Year 2023-24, as calculated in Exhibit A, and hereby determines the amount to be thirtynine million, one hundred seventy-nine thousand, four hundred thirty-four dollars ($39,179,434) for the City of Half Moon Bay, pursuant to Article XIII B of the California Constitution.

The City selected the following adjustment factors for the calculation of this amendment to the appropriations limit for the 2023-24 fiscal year: (1) the population factor of the City of Half Moon Bay; and (2) the Percentage Change in Per Capita Personal Income over prior year, which were provided by the State of California Department of Finance in May 2023. ******************************************************* I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 20th day of June, 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
259
RESOLUTION No. C-2023-

A RESOLUTION OF THE CITY OF HALF MOON BAY APPROVING THE

CITY OF HALF MOON BAY INVESTMENT POLICY
WHEREAS, the investment policy is reviewed each year by City Council in accordance with the City of Half Moon Bay's Investment Policy;
WHEREAS, the investment policy has been reviewed to ensure any necessary updates have been incorporated;
WHEREAS, there is no change in the investment policy at this time.

NOW, THEREFORE, BE IT RESOLVED THAT
The City Council of the City of Half Moon Bay hereby approves the City of Half Moon Bay's Investment Policy as contained in Exhibit A attached hereto. ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 20th day of June, 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
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