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Agenda packet

Half Moon Bay City Council
April 1, 2025

Document
Agenda packet
Meeting
April 1, 2025
Body
Half Moon Bay City Council
Pages
4
Original file
2.2 MB
Text extracted from the city's file for reading and search. Open the original on d3n9y02raazwpg.cloudfront.net. That file is the official record.

CITY COUNCIL AGENDA

REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, APRIL 1, 2025

HYBRID MEETING (SEE NEXT PAGE)

ADCOCK COMMUNITY CENTER
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Robert Brownstone, Mayor
Debbie Ruddock, Vice Mayor
Patric Jonsson, Councilmember
Paul Nagengast, Councilmember
Deborah Penrose, Councilmember
7:00 PM
This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item.

Comments on City Manager Updates and Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s consideration.

Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk.

Copies of written documentation relating to each item of business on the agenda are on file in the Office of the City Clerk at City Hall where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726-8271.

In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). http://hmbcity.com/
Wi-Fi: HMB Public
Password: Recreation1
1 HYBRID MEETING PARTICIPATION PROTOCOLS
This meeting will be held in-person and via Zoom for public participation. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation. Public comments may be made in-person or remotely via Zoom, and interpretation will be available. All Councilmembers and staff will participate in person. During any public comment portions, attendees may use the “raise your hand” feature and will be called upon and unmuted when it is their turn to speak. The meeting will also be streamed on Channel 27, on pacificcoast.tv, and on Facebook at www.facebook.com/cityofhalfmoonbay. Please click to join the webinar: https://us06web.zoom.us/j/87674804231 or join by phone at 669-900-9128, using Webinar ID 876-7480-4231. If joining by phone, use *9 to raise your hand, *6 to mute and unmute.

ROLL CALL / PLEDGE OF ALLEGIANCE

APPROVAL OF AGENDA

PROCLAMATIONS AND PRESENTATIONS

COASTSIDE VENTURE STUDIO UPDATE

MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

CITY MANAGER UPDATES TO COUNCIL

REPUBLIC SERVICES

NON-PROFIT DAY

PUBLIC FORUM

1. CONSENT CALENDAR

1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES

2. ORDINANCES AND PUBLIC HEARINGS
None.

3. RESOLUTIONS AND STAFF REPORTS

3.A 555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT - AMENDMENT OF

EXCLUSIVE NEGOTIATIONS AGREEMENT BETWEEN THE CITY AND MERCY HOUSING Staff Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to the Exclusive Negotiations Agreement (ENA) dated January 30, 2025, between the City of Half Moon Bay and Mercy Housing California that provides twelve months to negotiate an Affordable Housing and Property Disposition Agreement and the terms of a ground lease for a senior affordable housing development at 555 Kelly Avenue. The amendment would add the proposed lease term of 65 years and proposed payment of $1 per year.
2 STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2

3.B UPDATE ON THE RESIDENTIAL RENTAL REGISTION PROGRAM
Staff Recommendation: Receive an update on the City’s Residential Rental Registration Program.

STAFF REPORT

3.C AWARD CONSTRUCTION CONTRACT FOR THE FRENCHMAN’S CREEK PARK IMPROVEMENTS PROJECT (CIP PROJECT NO. 1013)
Staff Recommendation: Consider adoption of a resolution 1) Authorizing the Administrative Services Director to transfer $115,843 to the Capital Improvement Project (CIP) No. 1013 – Frenchman’s Creek Park Improvements Project – Phase II (Project); and 2)Authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Grading and Paving, Inc., of Half Moon Bay, California, in the amount of $351,076.49 and approve a construction contingency amount not to exceed $52,661.47 for a total construction budget of $403,737.96 for the Project.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4

3.D TELECOMMUTE AND ALTERNATIVE WORK SCHEDULE POLICY UPDATES Staff Recommendation: Receive an update on the City’s Telecommute and Alternative Work Schedule Policies.

STAFF REPORT

COMMISSION / COMMITTEE UPDATES

FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS

CITY COUNCIL REPORTS
3 ADJOURNMENT
4

Page 1 of 3 ends

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: April 1, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Mike Noce, Housing Programs Manager
TITLE: 555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT – AMENDMENT OF

EXCLUSIVE NEGOTIATIONS AGREEMENT BETWEEN THE CITY AND MERCY

HOUSING
______________________________________________________________________________ RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute an amendment to the Exclusive Negotiations Agreement (ENA) dated January 30, 2025, between the City of Half Moon Bay and Mercy Housing California, that provides twelve months to negotiate an Affordable Housing and Property Disposition Agreement and the terms of a ground lease for a senior affordable housing development at 555 Kelly Avenue. The amendment would add the proposed lease term of 65 years and proposed payment of $1 per year.

FISCAL IMPACT:

There is no fiscal impact directly associated with this action.

STRATEGIC ELEMENT:

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

BACKGROUND:

On October 4, 2022, the City Council approved an Exclusive Negotiations Agreement (ENA) with Mercy Housing to outline general tasks to be undertaken by both the City and Mercy as preparations for a formal entitlement (CDP) application were under review. During the ENA term, Mercy completed activities including but not limited to the following: public outreach, community meetings, Architectural Review Committee evaluation, secured a Coastal Development Permit, and was awarded roughly $6.2 million from State and County funding sources for the project. The ENA was allowed to expire in October 2024 given entitlements were issued, and the City and Mercy were actively engaged in ground lease negotiations.

On January 21, 2025, the City Council approved a resolution for the City to enter into a second ENA with Mercy that provides twelve months to negotiate an Affordable Housing and Property 5

Page 2 of 3 ends

Disposition Agreement (AHPDA) and the terms of a ground lease for a senior affordable housing development at 555 Kelly Avenue. Additional background regarding the request for the second ENA is available in the January 21, 2025 staff report, item 3.B. The ENA was signed by both parties on January 30, 2025 (Attachment 2). Additional information and staff reports related to various project milestones are posted on the City website at this link. 1 DISCUSSION:

The City’s approval of the Coastal Development Permit for a 40-unit affordable senior farmworker project at 555 Kelly Avenue represented a critical milestone. CDP approval combined with the original ENA represented sufficient site control to allow Mercy to actively maintain awarded funding requirements and seek funding from Federal, State, and County sources. Mercy has grant funds which are conditioned on maintaining site control. Mercy also indicates that other funding opportunities may not be available absent site control with specific terms outlined.

In January 2025, Mercy requested a new ENA to provide evidence of “site control” to existing and potential funders. The new ENA fills the gap between now and execution of an AHPDA, and terms of a ground lease. Mercy is submitting a new application for State funding through the California Department of Housing and Community Development (HCD), which, as a threshold requirement, mandates that if the site control is in the form of an ENA, the major terms of the acquisition have been determined and stated. The ENA Amendment would provide these outlined terms.

By its own terms, approval of an ENA and Amendment does not obligate either party to execute an AHPDA and/or terms of a ground lease. Entitlement issuance does not constitute control of the building site under conditions of typical affordable housing funding agencies. The ENA demonstrates that Mercy is actively engaged in negotiations with the City to preserve existing funds and to seek additional State and County funds. As the lease negotiations are currently active, the ENA and Amendment affirm that the City and Mercy are currently in good faith negotiations on the land lease and affordable housing covenant.

Mercy is also planning to apply for San Mateo County Affordable Housing Fund, and County and Federal rental subsidies this Summer. To be competitive for these funding sources, an Amendment to the ENA is required to demonstrate certain terms, namely a long-term ground lease at a below market rate lease rate.

DDLA versus AHPDA
The original ENA referenced negotiating in good faith towards a Disposition and Development Loan Agreement (DDLA), a common legal instrument that allows a property owner and developer to formalize the terms of a legal contract outlining the terms for a developer to acquire and develop property, including the sale or lease of land, and associated financing arrangements. The January 2025 ENA refers to an Affordable Housing Property Disposition 1 555 Kelly Avenue - Affordable Housing RFQ | Half Moon Bay, CA (half-moon-bay.ca.us) 6

Page 3 of 3 ends

Agreement (AHPDA) because, unlike a DDLA that was the subject of the prior ENA, the to-benegotiated agreement will not involve a further loan or funding to Mercy. The City is also following the model of San Mateo County’s Middlefield Junction project with Mercy, which utilized an AHPDA.

CONCLUSION:

Mercy is seeking approval of an Amendment to the ENA adding additional language including (a) proposed ground lease term of at least sixty-five (65) years (an HCD lease term threshold) with an option of extending the lease term to 99 years; and (b) a proposed payment of $1 per year.

The ENA term would remain unchanged, beginning on January 30, 2025, and expiring January 30, 2026. The ENA would automatically become null and void upon: 1) execution of an AHPDA and ground lease or 2) a decision by either party to cease negotiations.

ATTACHMENTS:

1. Resolution

2. Copy of Second ENA signed in January 2025
7 RESOLUTION NO. C-2025-____

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

CITY MANAGER TO AMEND THE EXCLUSIVE NEGOTIATIONS AGREEMENT WITH MERCY HOUSING CALIFORNIA FOR A SENIOR AFFORDABLE HOUSING DEVELOPMENT AT 555 KELLY AVENUE.

WHEREAS, the City of Half Moon Bay (City) owns two parcels located at 555 Kelly Avenue and 535 Kelly Avenue (the Site) (Assessor Parcel Numbers 056-150-200 and 056-150- 220); and
WHEREAS, on February 15, 2022, the City issued a Request for Qualifications (RFQ) for the development of affordable housing on the Site that may target a range of affordable housing types and underserved populations; and
WHEREAS, Mercy Housing California (Mercy Housing), in partnership with Ayudando Latinos A Soñar (ALAS), submitted a response to the RFQ proposing construction of a 40-unit affordable farmworker housing development for households with extremely low or very low incomes (maximum of 30% or 50% of the Area Median Income), with the development to include associated amenities as well as a farmworker resource center (the Project); and WHEREAS, on October 4, 2022, the City Council authorized an Exclusive Negotiations Agreement (First ENA) with Mercy Housing to enable Mercy Housing’s affiliate, Mercy Housing California 110, L.P., a California limited partnership (Developer) to carry out predevelopment and development activities associated with the Project; and WHEREAS, the purpose of the First ENA was to outline general tasks to be undertaken by both the City and Mercy as preparations for a formal entitlement (Coastal Development Permit – CDP) application were under review; and
WHEREAS, entitlements were issued when the City Council held an appeals hearing on June 26, 2024, and upheld the Planning Commission’s earlier decision to approve a CDP and Architectural Review on May 14, 2024, for the Project; and WHEREAS, the First ENA was allowed to expire on October 30, 2024, while the City and Mercy were actively engaged in ground lease negotiations; and WHEREAS, Mercy Housing requested, and on January 21, 2025, the City Council authorized a new ENA (Second ENA) to provide twelve months to negotiate an Affordable Housing and Property Disposition Agreement (AHPDA) and the terms of a ground lease; and WHEREAS, Mercy Housing requested an amendment to the Second ENA, to provide specific evidence of “site control” to existing and potential State and County funders while the negotiations of affordable housing covenants and terms of a ground lease are ongoing; and 8 WHEREAS, by its own terms, approval of an ENA and Amendment does not obligate either party to execute an AHPDA and/or terms of a ground lease, and Mercy is actively engaged in good faith negotiations with the City to preserve existing funds and to seek additional State and County funds.

NOW THEREFORE BE IT RESOLVED THAT, the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute an amendment to Exclusive Negotiations Agreement between the City and Mercy Housing with an additional proposed term to include (a) proposed ground lease term of at least sixty-five (65) years with an option of extending the Lease term to 99 years; and (b) a proposed payment of $1 per year, prior to the expiration of the Negotiating Period for a senior affordable housing development at 555 Kelly Avenue. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 1st day of April 2025, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 9 



 













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Page 1 of 4 ends

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: April 1, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Mike Noce, Housing Programs Manager
Irma Acosta, Administrative Analyst
TITLE: UPDATE ON THE RESIDENTIAL RENTAL REGISTRATION PROGRAM ______________________________________________________________________________ RECOMMENDATION:

Receive an update on the City’s Residential Rental Registration Program.

FISCAL IMPACT:

There is no fiscal impact with receiving this informational update.

STRATEGIC ELEMENTS:

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

BACKGROUND:

On November 7, 2023, the City Council held a study session on Tenant Protections. After receiving community input and discussing the issue, the City Council directed staff to immediately initiate work on a residential rental registration ordinance to be accompanied or followed by other tenant protection measures, including rent stabilization and code enforcement related relocation assistance.

On February 6, 2024, the City Council adopted the Residential Rental Registration ordinance, now codified under Title 6 HOUSING, Chapter 6.04 in the Half Moon Bay Municipal Code. The ordinance requires all landlords to register their residential rental units annually, which enables the City to monitor and analyze the characteristics of residential rental units and rents to inform future policy decisions. The responsibility for rental registration lies with the landlord, and the ordinance explicitly prohibits passing registration fees or penalties on to tenants.

To facilitate compliance and convenience for property owners, the City contracted with Tolemi to create an online registration portal. Personal data collected through the registration portal remains confidential. Registration fees were set at $75 per unit, plus applicable credit card fees of no more than 3%. The initial rental registration process officially began on June 1, 2024, with 20

Page 2 of 4 ends

a no-fee registration period running until June 30, 2024, to encourage compliance in this initial rollout of the program. By mid-July 2024, 573 rental units had been successfully registered.

Given the importance of this initial registration and to promote program compliance, the City extended the no fee period through July 31, 2024. In addition to robust outreach, staff developed a program webpage providing resources including a registration link, FAQs, and support contacts.

On May 7, 2024, the City Council approved the Rent Stabilization ordinance, introducing measures to cap rent increases and protect tenants from excessive rent hikes, which can also be found in Title 6 HOUSING of the Municipal Code, Chapter 6.06. The current maximum rent increase for properties with two or more units built prior to 1995 is set at 2.6% through December 1, 2025.

The City will release the maximum rent increase allowed through the ordinance on an annual basis. The maximum rent calculation is based on the code provision defined as an amount not to exceed three (3%) percent, or eighty (80%) percent of the change in the consumer price index (May to May), whichever is less, and more than one rent increase in any twelve-month period is prohibited. Implementation for rent stabilization began in August 2024, when the City formally initiated the registration of rent-stabilized properties through the Tolemi portal and started enforcing rent stabilization measures.

The list below summarizes milestones achieved since the initial registration for both programs as well as future milestones for 2025.

Timeline of Key Milestones
2023:
• November 2023: Tenant Protections Study Session
2024:
• January - May 2024: Public Outreach and Ordinances Passed o Outreach to stakeholders
o Residential Rental Registration and Rent Stabilization ordinances were passed o Development of administrative policies and procedures • June 2024: Initial Registration for Rental Registration o No fee registration June 1 – July 31, 2024
• August 2024: Rent Stabilization Registration Initiated • September 2024: Grace Period Begins
o A grace period was implemented to allow landlords time to comply with registration and rent stabilization requirements before formal enforcement began
• October 2024: Warning Notices Issued
o Landlords who failed to meet registration requirements received initial warning notices to prompt compliance
o Late fees for rental registry began
21

Page 3 of 4 ends

• November/December 2024: Second Warning
o For landlords who continued to remain non-compliant, a second warning was issued, signaling the approach of enforcement actions
2025:
• January 2025: Code Enforcement Citation Warning
o Notices were sent to landlords who still had not complied, warning them of the impending issuance of citations for continued non-compliance • February 2025: Citations Issued for Rent Stabilization Violations o Citations were officially issued to landlords in violation of the rent stabilization policies, beginning the enforcement of regulations for the 2024/2025 rental period.
• March 2025: Rent Registration Compliance
o Continued monitoring of compliance and additional enforcement measures will be assessed
o Start enforcement phase of the Rent Registration Program • April and May 2025: Compliance Continued
o Expecting continued work on compliance
• June 2025: Registration
o Year-two registration for both Rental Registration and Rent Stabilization DISCUSSION:

The Rental Registration Program is progressing steadily, with 1,048 units registered, including 370 rent-stabilized properties, and a 79% compliance rate. The City has made significant efforts to inform landlords and ensure that the registration process reflects adequate data by maximizing compliance. The launch of the Rental Registration Program in mid-2024 was a considerable undertaking that utilized significant staff time to assist property owners with inquiries and guidance on the registration process. The strain on staff resources should decrease for future registration periods with landlord data being saved in the Tolemi portal, easing the registration process and increased compliance rates. Table 1 below provides a breakdown of current program compliance.

Table 1: Rental Registration Compliance
Category Rental Registration Rent Stabilization
Suspected Units 1326 472
Registered Units 1048 370
Compliance Rate 79% 79%
22

Page 4 of 4 ends

As the program has moved forward beyond the initial registration, clarifications have been necessary regarding the interpretation of the ordinance and the application of certain provisions of the ordinance. One interpretation of the ordinance pertained to a family member occupying a unit that is not the landlord’s primary residence. Staff presented this interpretation to the City Council on July 16, 2024. Further details can be found in the staff report. Following the discussion, staff was directed to continue instructing landlords to register these units, even if a family member is the tenant. Whether rent is charged, reduced, or fully subsidized for a family member, the unit is still classified as a “residential rental unit,” and its occupants are considered “tenants” under Municipal Code Chapter 6.02. This requirement applies specifically to units where the owner of record does not reside in the unit.

In addition, Affordable Housing providers have raised concerns about the financial strain imposed by the registration fee. Given their limited operating budgets and large multifamily buildings, they have expressed difficulty in absorbing the additional cost of $75 per unit. Staff continue to evaluate ways to address these concerns and explore potential solutions.

CONCLUSION:

Continuing to address the remaining compliance issues and refining the registration system for landlords are key tasks for future years. Staff will focus on educating both landlords and tenants about their rights and responsibilities. Additionally, data will be analyzed to identify trends and inform future policy decisions. Staff will evaluate the effectiveness of enforcement measures, and those efforts will be shared with the City Council at a later date as part of future program updates. As the Rental Registration Program moves forward, ongoing outreach and support will be crucial to ensuring long-term success and maintaining a fair and transparent rental market in Half Moon Bay.
23

Page 1 of 4 ends

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: April 1, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maz Bozorginia, Public Works Director/City Engineer Jonathan Woo, Assistant Engineer
TITLE: AWARD CONSTRUCTION CONTRACT FOR THE FRENCHMAN’S CREEK PARK IMPROVEMENTS PROJECT (CIP PROJECT NO. 1013)
______________________________________________________________________________ RECOMMENDATION:

Consider adoption of a resolution:
1) Authorizing the Administrative Services Director to transfer $115,843 to the Capital Improvement Project (CIP) No. 1013 – Frenchman’s Creek Park Improvements Project – Phase II (Project); and
2) Authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Grading and Paving, Inc., of Half Moon Bay, California, in the amount of $351,076.49 and approve a construction contingency amount not to exceed $52,661.47 for a total construction budget of $403,737.96 for the Project.

FISCAL IMPACT:

The recommendation requires a transfer of an additional $115,843 from the Park/Facilities Development Fund 125 (current Fund 125 balance is approximately $330,000) to the Project.

With this action, the amount of local funds dedicated towards project construction would be $315,842.60, with an additional $185,672 coming from grant funding; for a total project budget of $501,514.60.

To date, approximately $58,000 has been expended on project soft costs (design, environmental, bidding and advertisement). If the recommendation is approved, the overall revised project budget would be:

Expenditure Amount
Design/Environmental/Miscellaneous (spent to date) $57,776.64 Construction Award $351,076.49
Construction Contingency $52,661.47
24

Page 2 of 4 ends

Construction Support (as-needed, not to exceed) $40,000 Total $501,514.60
STRATEGIC ELEMENTS:

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

BACKGROUND:

The Parks Master Plan, adopted by the City Council on February 5, 2019, identified Frenchman’s Creek Park as an opportunity for amenity and infrastructure improvements. In Spring 2021, new play equipment and an accessible rubberized surface were installed (Phase I) with support from the Friends of Half Moon Bay Parks and Recreation, who contributed $15,000 in fundraising.

In FY 2022-23, the City secured a $185,672 grant from the California Proposition 68 Park Bond Program. On September 20, 2022, the City Council approved a resolution designating “Frenchman’s Creek Park Phase II” as the recipient of these grant funds and authorizing a professional services agreement for the design. At the time, the Proposition 68 funds were estimated to account for approximately 51-percent of the total budgeted funds for the project.

Phase II includes new swings, picnic tables, a plaza, additional split rail fencing, a drinking fountain, seat walls, a bulletin board, accent planting, bike racks, trash receptacles, an ADA independent rider, and additional off-street parking, including one ADA van-accessible space.

The original estimated cost for Phase II was $385,672, including $77,000 for design, oversight, and permitting, $210,672 for construction, and $98,000 equipment. These figures were very preliminary and predated design and professional estimation and did not include any contingency.

Bid Summary:

The City advertised the Project on January 24, 2025, receiving seven (7) bids before the February 20, 2025, deadline. The bids and engineer’s estimate are summarized below:

Bidder Base Bid
Engineer’s Estimate $285,117.00
Half Moon Bay Grading & Paving, Inc. $351,076.49
Scapes, Inc. $369,950.70
Coastline Construction, Inc. $396,840.72
Raposo Engineering, Inc. $408,691.07
Frontline General Engineering Construction, Inc. $498,494.88 Golden Bay Construction, Inc. $502,639.75
Galeb Paving, Inc. $585,800.00
25

Page 3 of 4 ends

DISCUSSION:

Half Moon Bay Grading and Paving, Inc. submitted the lowest responsive and responsible bid at $351,076.49, approximately 23.1% above the Engineer’s Estimate for construction. The current economy, including increases in labor and material costs, appear to be the main factors in the variance from the engineer’s estimate. Staff have reviewed the bid and found it acceptable.

Construction contingencies of $52,661.47 (15%) are recommended.

The additional funding request will support full project build-out, construction contingencies, and soft costs including design support and material testing. Anticipated expenditures are detailed below:

Firm Amount
Design/Environmental/Miscellaneous $57,776.64
Half Moon Bay Grading & Paving, Inc. $351,076.49
Construction Contingencies (15%) $52,661.47
Construction Design Support (as needed) $20,000.00
Material Testing & Inspection (TBD) $10,000.00
Environmental and Biological Support (TBD) $10,000.00
Total Anticipated Expenditures $501,514.60
Construction would occur on weekdays from 7:00 a.m. to 5:00 p.m. Public notices will be posted in advance, and traffic control measures will be implemented as needed. The project is expected to run from mid-spring through early summer 2025, barring material/procurement delays.

ALTERNATIVES:

Given the current budget forecast for the City, there are a couple of alternatives available for Council to consider and are presented below.

Alternative 1:

Modify the scope to align with the available Proposition 68 grant funding ($185,672). This would result in a drastically reduced project scope and eliminate many of the additional amenities incorporated in the Phase II design. If this is preferred, Staff recommend rejecting all bids, revising the design and scope, and re-advertising new bids at a future date.

Alternative 2:

Modify the scope to align with both the available Proposition 68 grant funding ($185,672) and the previous project funding allocation remaining after design and environmental expenditures ($142,000). This would result in a reduced project scope and eliminate some of the additional amenities incorporated in the Phase II design. If this is preferred, Staff recommend rejecting all bids, revising the design and scope, and re-advertising new bids at a future date. 26

Page 4 of 4 ends

Alternative 3:

Postpone this project indefinitely. If that is the direction of the Council, staff will need to discuss with the Grantor (State Parks) the feasibility of transferring the Prop 68 grant funds to another project. If this is preferred, Staff would recommend rejecting all bids and would return to Council with additional information on other potential uses for the funding.

Original Recommendation:

If the current scope and costs are acceptable, Staff recommend the Council adopt a resolution to:

1. Authorize the transfer of $115,843 to CIP No. 1013 – Frenchman’s Creek Park Improvements Project – Phase II.

2. Authorize the City Manager to award and execute the construction contract with Half Moon Bay Grading and Paving, Inc. for $351,076.49, with a construction contingency not to exceed $52,661.47, for a total construction budget of $403,737.96.

ATTACHMENTS:

1. RESOLUTION

2. BID TABULATION

3. PROJECT SITE PLAN

4. DRAFT UPDATED CIP PROJECT PAGE
27

Page 1 of 2 ends

Resolution No. C-2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE ADMINISTRATIVE SERVICES DIRECTOR TO TRANSFER $115,843 TO CAPITAL IMPROVEMENT PROJECT (CIP) NO. 1013 – FRENCHMAN’S CREEK PARK IMPROVEMENTS PROJECT – PHASE II (PROJECT) AND AUTHORIZING THE CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT WITH HALF MOON BAY GRADING AND PAVING, INC. OF HALF MOON BAY, CALIFORNIA, IN THE AMOUNT OF $351,076.49 AND APPROVING A CONSTRUCTION CONTINGENCY AMOUNT NOT EXCEEDING $52,661.47 FOR THE PROJECT FOR A TOTAL CONSTRUCTION BUDGET OF $403,737.96.

WHEREAS, the Parks Master Plan, adopted by the City Council on February 5, 2019, identified Frenchman’s Creek Park, a small neighborhood park located on Ruisseau Francais Avenue in the Frenchman’s Creek neighborhood, as an opportunity to improve amenities and the infrastructure; and
WHEREAS, with the support of the Friends of Half Moon Bay Parks and Recreation (who fundraised $15,000) and from the community, new play equipment was installed with accessible rubberized surface that replaced the existing infrastructure in Spring 2021 (Phase I); and WHEREAS, in FY 2022-23, the City received a $185,672 population-based grant through the California Proposition 68 Park Bond Program and Phase II of the Frenchman’s Creek Park Improvements Project was designated as the recipient of these grant funds; and WHEREAS, Phase II includes park improvements including new swings, picnic tables, a new plaza, additional split rail fencing, drinking fountain, seat walls, a bulletin board, accent planting, bike racks, trash receptacles, and an ADA independent rider; and WHEREAS, the project also includes parking improvements including altering the existing two (2) parallel parking stalls to three (3) angled parking stalls, one of which being an ADA van accessible parking stall; and
WHEREAS, the City advertised the project on Friday, January 24, 2025, and opened seven (7) bids that were received at the scheduled time, date, and place, as set forth in the Public Contract Code for the Project at 2:00 PM on Thursday, February 20, 2025; and WHEREAS, the lowest responsive and responsible bid was submitted by Half Moon Bay Grading and Paving, Inc., out of Half Moon Bay, California, in the amount of $351,076.49. 28

Page 2 of 2 ends

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Authorizes the Administrative Services Director to transfer $115,873 to Capital Improvement Project (CIP) No. 1013 – Frenchman’s Creek Park Improvements Project – Phase II (Project); and
2) Accepts the submitted seven (7) responsive bids; and 3) Authorizes the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Half Moon Bay Grading and Paving, Inc., out of Half Moon Bay, California, in the amount of $351,076.49; and 4) Approves the construction contingency (15%) amount not exceeding $52,661.47 for a total construction budget of $403,737.96.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 1st day of April 2025, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
_______________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 29 UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL 1 Mobilization/Demobilization LS 1 $ 13,577.00 $ 13,577.00 $ 11,000.00 $ 11,000.00 $ 7,500.00 $ 7,500.00 $ 33,000.00 $ 33,000.00 $ 20,000.00 $ 20,000.00 $ 58,043.18 $ 58,043.18 $ 39,823.00 $ 39,823.00 $ 73,527.15 $ 73,527.15 2 Notifications to Residents and Businesses LS 1 $ 3,000.00 $ 3,000.00 $ 2,100.00 $ 2,100.00 $ 2,000.00 $ 2,000.00 $ 1,250.00 $ 1,250.00 $ 1,500.00 $ 1,500.00 $ 2,379.02 $ 2,379.02 $ 1,500.00 $ 1,500.00 $ 1,000.00 $ 1,000.00 3 Traffic Control LS 1 $ 10,400.00 $ 10,400.00 $ 6,500.00 $ 6,500.00 $ 3,000.00 $ 3,000.00 $ 12,400.00 $ 12,400.00 $ 3,500.00 $ 3,500.00 $ 4,757.02 $ 4,757.02 $ 5,000.00 $ 5,000.00 $ 3,312.00 $ 3,312.00 4 Sheeting, Shoring, and Bracing LS 1 $ 11,400.00 $ 11,400.00 $ 4,275.30 $ 4,275.30 $ 2,000.00 $ 2,000.00 $ 4,225.00 $ 4,225.00 $ 1,500.00 $ 1,500.00 $ 5,486.31 $ 5,486.31 $ 500.00 $ 500.00 $ 1,000.00 $ 1,000.00 5 Construction Staking and Survey LS 1 $ 5,200.00 $ 5,200.00 $ 8,000.00 $ 8,000.00 $ 19,250.00 $ 19,250.00 $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 15,000.00 $ 8,897.20 $ 8,897.20 $ 6,500.00 $ 6,500.00 $ 7,590.00 $ 7,590.00 6 Site Investigation and Potholing LS 1 $ 10,400.00 $ 10,400.00 $ 4,960.00 $ 4,960.00 $ 1,500.00 $ 1,500.00 $ 3,200.00 $ 3,200.00 $ 2,000.00 $ 2,000.00 $ 3,172.02 $ 3,172.02 $ 1,900.00 $ 1,900.00 $ 40,416.00 $ 40,416.00 7 Earthwork Off-Haul TON 34 $ 40.00 $ 1,360.00 $ 300.00 $ 10,200.00 $ 200.00 $ 6,800.00 $ 40.00 $ 1,360.00 $ 200.00 $ 6,800.00 $ 654.72 $ 22,260.48 $ 325.00 $ 11,050.00 $ 365.00 $ 12,410.00 8 Stormwater Pollution Prevention LS 1 $ 5,200.00 $ 5,200.00 $ 5,000.00 $ 5,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 6,000.00 $ 6,000.00 $ 3,625.35 $ 3,625.35 $ 5,800.00 $ 5,800.00 $ 7,812.00 $ 7,812.00 9 Turf Removal SF 7,681 $ 0.50 $ 3,841.00 $ 2.15 $ 16,514.15 $ 2.20 $ 16,898.20 $ 0.70 $ 5,376.70 $ 3.65 $ 28,035.65 $ 1.83 $ 14,056.23 $ 1.75 $ 13,441.75 $ 1.40 $ 10,753.40 10 Concrete Removal SF 1,030 $ 10.00 $ 10,300.00 $ 11.20 $ 11,536.00 $ 6.00 $ 6,180.00 $ 1.80 $ 1,854.00 $ 5.00 $ 5,150.00 $ 13.59 $ 13,997.70 $ 5.00 $ 5,150.00 $ 10.50 $ 10,815.00 11 Asphalt Concrete Removal (Parking Area) SY 52 $ 20.00 $ 1,040.00 $ 160.00 $ 8,320.00 $ 40.00 $ 2,080.00 $ 30.00 $ 1,560.00 $ 95.00 $ 4,940.00 $ 58.21 $ 3,026.92 $ 45.00 $ 2,340.00 $ 105.50 $ 5,486.00 12 Wood Fence Post Removal LF 107 $ 3.00 $ 321.00 $ 21.00 $ 2,247.00 $ 23.00 $ 2,461.00 $ 6.95 $ 743.65 $ 35.00 $ 3,745.00 $ 28.84 $ 3,085.88 $ 25.00 $ 2,675.00 $ 49.10 $ 5,253.70 13 Site Furnishing Removal LS 1 $ 300.00 $ 300.00 $ 4,197.20 $ 4,197.20 $ 1,100.00 $ 1,100.00 $ 5,100.00 $ 5,100.00 $ 4,500.00 $ 4,500.00 $ 4,843.00 $ 4,843.00 $ 2,500.00 $ 2,500.00 $ 5,160.00 $ 5,160.00 14 Shrub/Planting Removal LS 1 $ 1,400.00 $ 1,400.00 $ 3,120.00 $ 3,120.00 $ 1,500.00 $ 1,500.00 $ 1,950.00 $ 1,950.00 $ 1,000.00 $ 1,000.00 $ 3,201.60 $ 3,201.60 $ 2,800.00 $ 2,800.00 $ 9,600.00 $ 9,600.00 15 3/4" Backflow Preventer EA 1 $ 2,600.00 $ 2,600.00 $ 3,600.00 $ 3,600.00 $ 2,500.00 $ 2,500.00 $ 4,800.00 $ 4,800.00 $ 4,800.00 $ 4,800.00 $ 3,649.02 $ 3,649.02 $ 1,800.00 $ 1,800.00 $ 4,950.00 $ 4,950.00 16 1" Backflow Preventer EA 1 $ 2,600.00 $ 2,600.00 $ 3,900.00 $ 3,900.00 $ 3,500.00 $ 3,500.00 $ 5,250.00 $ 5,250.00 $ 5,900.00 $ 5,900.00 $ 3,649.02 $ 3,649.02 $ 6,300.00 $ 6,300.00 $ 5,500.00 $ 5,500.00 17 Relocation of Sign Post EA 3 $ 520.00 $ 1,560.00 $ 325.00 $ 975.00 $ 1,000.00 $ 3,000.00 $ 1,275.00 $ 3,825.00 $ 200.00 $ 600.00 $ 793.64 $ 2,380.92 $ 200.00 $ 600.00 $ 400.00 $ 1,200.00 18 Relocation of Utility Light Pole EA 1 $ 5,200.00 $ 5,200.00 $ 1,900.00 $ 1,900.00 $ 2,000.00 $ 2,000.00 $ 2,850.00 $ 2,850.00 $ 7,500.00 $ 7,500.00 $ 3,665.60 $ 3,665.60 $ 10,545.00 $ 10,545.00 $ 15,000.00 $ 15,000.00 19 Relocation of ADA Sign Post EA 1 $ 1,040.00 $ 1,040.00 $ 400.00 $ 400.00 $ 3,000.00 $ 3,000.00 $ 550.00 $ 550.00 $ 350.00 $ 350.00 $ 3,774.41 $ 3,774.41 $ 200.00 $ 200.00 $ 745.00 $ 745.00 20 Thermoplastic Stripign (Blue and White) SF 267 $ 10.00 $ 2,670.00 $ 10.25 $ 2,736.75 $ 20.00 $ 5,340.00 $ 61.61 $ 16,449.87 $ 30.00 $ 8,010.00 $ 15.44 $ 4,122.48 $ 20.00 $ 5,340.00 $ 26.40 $ 7,048.80 21 AC Pavement (Parking Area Only) SF 962 $ 30.00 $ 28,860.00 $ 17.50 $ 16,835.00 $ 23.00 $ 22,126.00 $ 16.50 $ 15,873.00 $ 17.10 $ 16,450.20 $ 23.43 $ 22,539.66 $ 36.00 $ 34,632.00 $ 17.50 $ 16,835.00 22 Pedestrian Concrete SF 1,704 $ 25.00 $ 42,600.00 $ 20.00 $ 34,080.00 $ 28.00 $ 47,712.00 $ 17.50 $ 29,820.00 $ 25.00 $ 42,600.00 $ 17.56 $ 29,922.24 $ 24.00 $ 40,896.00 $ 24.10 $ 41,066.40 23 6" Concrete Curb/Band LF 212 $ 50.00 $ 10,600.00 $ 51.88 $ 10,998.56 $ 100.00 $ 21,200.00 $ 54.00 $ 11,448.00 $ 41.00 $ 8,692.00 $ 97.63 $ 20,697.56 $ 88.00 $ 18,656.00 $ 64.20 $ 13,610.40 24 Wheel Stops EA 3 $ 220.00 $ 660.00 $ 150.00 $ 450.00 $ 300.00 $ 900.00 $ 130.00 $ 390.00 $ 300.00 $ 900.00 $ 796.78 $ 2,390.34 $ 230.00 $ 690.00 $ 165.00 $ 495.00 25 Detectable Warnings SF 34 $ 50.00 $ 1,700.00 $ 67.67 $ 2,300.78 $ 90.00 $ 3,060.00 $ 52.50 $ 1,785.00 $ 45.00 $ 1,530.00 $ 26.99 $ 917.66 $ 48.00 $ 1,632.00 $ 99.50 $ 3,383.00 26 Soil Prep SF 1,180 $ 0.10 $ 118.00 $ 1.50 $ 1,770.00 $ 2.00 $ 2,360.00 $ 2.10 $ 2,478.00 $ 2.50 $ 2,950.00 $ 3.34 $ 3,941.20 $ 0.75 $ 885.00 $ 2.53 $ 2,985.40 27 Mulch SF 1,180 $ 1.00 $ 1,180.00 $ 1.60 $ 1,888.00 $ 1.20 $ 1,416.00 $ 1.60 $ 1,888.00 $ 1.75 $ 2,065.00 $ 2.55 $ 3,009.00 $ 1.75 $ 2,065.00 $ 2.20 $ 2,596.00 28 Turf Sod Bolero Plus SF 3,675 $ 0.10 $ 368.00 $ 5.00 $ 18,375.00 $ 4.50 $ 16,537.50 $ 4.55 $ 16,721.25 $ 4.90 $ 18,007.50 $ 3.29 $ 12,090.75 $ 5.00 $ 18,375.00 $ 7.70 $ 28,297.50 29 Entry Sign Planting SF 1,180 $ 17.00 $ 20,060.00 $ 2.63 $ 3,103.40 $ 6.00 $ 7,080.00 $ 4.70 $ 5,546.00 $ 5.50 $ 6,490.00 $ 13.49 $ 15,918.20 $ 8.50 $ 10,030.00 $ 11.00 $ 12,980.00 30 Irrigation System SF 4,819 $ 0.40 $ 1,928.00 $ 8.01 $ 38,600.19 $ 5.00 $ 24,095.00 $ 7.50 $ 36,142.50 $ 7.88 $ 37,973.72 $ 8.90 $ 42,889.10 $ 6.00 $ 28,914.00 $ 8.00 $ 38,552.00 31 Drinking Fountain EA 1 $ 2,500.00 $ 2,500.00 $ 8,283.00 $ 8,283.00 $ 8,500.00 $ 8,500.00 $ 9,000.00 $ 9,000.00 $ 5,800.00 $ 5,800.00 $ 10,937.06 $ 10,937.06 $ 19,950.00 $ 19,950.00 $ 6,357.50 $ 6,357.50 32 Pet Drinking Fountain EA 1 $ 2,500.00 $ 2,500.00 $ 5,600.00 $ 5,600.00 $ 3,500.00 $ 3,500.00 $ 5,000.00 $ 5,000.00 $ 3,900.00 $ 3,900.00 $ 6,401.80 $ 6,401.80 $ 13,650.00 $ 13,650.00 $ 6,357.50 $ 6,357.50 33 Boulders EA 4 $ 150.00 $ 600.00 $ 2,250.00 $ 9,000.00 $ 1,800.00 $ 7,200.00 $ 1,675.00 $ 6,700.00 $ 2,150.00 $ 8,600.00 $ 974.26 $ 3,897.04 $ 3,200.00 $ 12,800.00 $ 7,700.00 $ 30,800.00 34 Bike Rack EA 1 $ 2,000.00 $ 2,000.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 1,200.00 $ 1,200.00 $ 750.00 $ 750.00 $ 2,799.93 $ 2,799.93 $ 1,500.00 $ 1,500.00 $ 2,180.00 $ 2,180.00 35 Play Structures LS 1 $ 10,245.00 $ 10,245.00 $ 15,035.61 $ 15,035.61 $ 18,500.00 $ 18,500.00 $ 25,820.00 $ 25,820.00 $ 29,000.00 $ 29,000.00 $ 19,134.54 $ 19,134.54 $ 19,060.00 $ 19,060.00 $ 23,950.00 $ 23,950.00 36 Wausa Knife Bench EA 1 $ 5,000.00 $ 5,000.00 $ 3,000.00 $ 3,000.00 $ 7,500.00 $ 7,500.00 $ 9,800.00 $ 9,800.00 $ 3,500.00 $ 3,500.00 $ 4,921.34 $ 4,921.34 $ 4,500.00 $ 4,500.00 $ 4,940.00 $ 4,940.00 37 Synthetic Play Surfacing SF 1,303 $ 16.00 $ 20,848.00 $ 36.85 $ 48,015.55 $ 35.00 $ 45,605.00 $ 38.25 $ 49,839.75 $ 34.00 $ 44,302.00 $ 50.88 $ 66,296.64 $ 57.00 $ 74,271.00 $ 36.75 $ 47,885.25 38 Trash Can & Recycling EA 1 $ 1,600.00 $ 1,600.00 $ 675.00 $ 675.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 600.00 $ 600.00 $ 3,295.22 $ 3,295.22 $ 960.00 $ 960.00 $ 1,060.00 $ 1,060.00 39 Split Rail Fencing LF 115 $ 175.00 $ 20,125.00 $ 56.00 $ 6,440.00 $ 70.00 $ 8,050.00 $ 75.00 $ 8,625.00 $ 80.00 $ 9,200.00 $ 130.97 $ 15,061.55 $ 137.00 $ 15,755.00 $ 200.00 $ 23,000.00 40 Wausa Concrete Bench EA 2 $ 2,000.00 $ 4,000.00 $ 1,900.00 $ 3,800.00 $ 1,450.00 $ 2,900.00 $ 2,000.00 $ 4,000.00 $ 3,000.00 $ 6,000.00 $ 6,412.08 $ 12,824.16 $ 5,900.00 $ 11,800.00 $ 4,940.00 $ 9,880.00 41 Picnic Tables EA 2 $ 4,000.00 $ 8,000.00 $ 1,800.00 $ 3,600.00 $ 10,000.00 $ 20,000.00 $ 10,000.00 $ 20,000.00 $ 4,200.00 $ 8,400.00 $ 4,305.25 $ 8,610.50 $ 10,977.00 $ 21,954.00 $ 10,025.00 $ 20,050.00 42 Grills EA 1 $ 2,000.00 $ 2,000.00 $ 875.00 $ 875.00 $ 2,500.00 $ 2,500.00 $ 1,800.00 $ 1,800.00 $ 2,100.00 $ 2,100.00 $ 2,163.31 $ 2,163.31 $ 2,100.00 $ 2,100.00 $ 2,180.00 $ 2,180.00 43 Relocate Existing Bench EA 1 $ 2,000.00 $ 2,000.00 $ 435.00 $ 435.00 $ 500.00 $ 500.00 $ 1,550.00 $ 1,550.00 $ 4,500.00 $ 4,500.00 $ 696.00 $ 696.00 $ 2,500.00 $ 2,500.00 $ 530.00 $ 530.00 44 Flo Sump EA 1 $ 1,000.00 $ 1,000.00 $ 2,100.00 $ 2,100.00 $ 500.00 $ 500.00 $ 1,750.00 $ 1,750.00 $ 850.00 $ 850.00 $ 7,919.32 $ 7,919.32 $ 840.00 $ 840.00 $ 750.00 $ 750.00 45 3/4" PVC Flo Sump Drainage Pipe LF 10 $ 1.60 $ 16.00 $ 8.50 $ 85.00 $ 60.00 $ 600.00 $ 62.00 $ 620.00 $ 250.00 $ 2,500.00 $ 103.49 $ 1,034.90 $ 121.00 $ 1,210.00 $ 150.00 $ 1,500.00 46 3/4" Copper Pipe LF 150 $ 8.00 $ 1,200.00 $ 25.00 $ 3,750.00 $ 20.00 $ 3,000.00 $ 72.00 $ 10,800.00 $ 68.00 $ 10,200.00 $ 40.75 $ 6,112.50 $ 115.00 $ 17,250.00 $ 100.00 $ 15,000.00 $ 285,117.00 $ 351,076.49 $ 369,950.70 $ 396,840.72 $ 408,691.07 $ 498,494.88 $ 502,639.75 $ 585,800.00 15% Contingency $ 42,768.00
$ 327,885.00

ENGINEERS ESTIMATE
FRENCHMAN'S CREEK PARK IMPROVEMENTS PROJECT - PHASE II - BID SUMMARY - THURSDAY, FEBRUARY 20, 2025, AT 2:00 PM

HALF MOON BAY GRADING
AND PAVING, INC. SCAPES, INC. COASTLINE CONSTRUCTION, INC. RAPOSO ENGINEERING, INC. FRONTLINE GENERAL ENGINEERING CONSTRUCTION, INC. GOLDEN BAY CONSTRUCTION, INC. GALEB PAVING, INC.

Base Bid Grand Total
Base Bid Subtotal

ITEM ITEM DESCRIPTION UNIT QTY SPEC CERT
30 31
Category: 1013
Project Location:

Type:

Initial Funding FY 22-23 Estimated Completion: 125 Fund Name: Parks XX

PRIOR YEARS BUDGET

EXPENDITURES
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FUTURE YEARS TOTAL ALL FY $ 40,000 57,777 $ $ 97,777
$ 403,738 $ 403,738
$ - $ - $ 57,777 $ 443,738 $ - $ - $ - $ - $ - $ 501,515

PRIOR YEARS BUDGET

ALLOCATIONS
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FUTURE YEARS TOTAL ALL FY $ 170,000 $ 170,000
$ 115,843 30,000 $ $ 185,672 - $ $ 185,672
$ - $ 301,515 200,000 $ - $ - $ - $ - $ - $ 501,515 $
DESCRIPTION:

This project is Phase II of the reconstruction efforts of Frenchman's Creek Park. This phase inclludes the installation of a swing set, parking lot reconstruction, site rehabilitation, additional amendities for the park.

Healthy Community/Public Safety
PROJECT TITLE: FRENCHMAN'S CREEK PARK IMPROVEMENTS - PHASE II Parks Project Number:Frenchman's Creek Park Lead Department: Public Works Capital Maintenance/Community Enhancement Status: Previously Approved FY 24-25 Fund Number:

JUSTIFICATION:

Frenchman's Creek Park is described in the Half Moon Bay Parks Master Plan as one of the parks that recommended for improvements.

STRATEGIC PLAN GOAL (please check all that apply)
InfrastructureFiscal Sustainability ADDITIONAL DETAILS:Inclusive Governance Phase I of the Frenchman's Creek Park Improvements were completed in FY 21/22. Phase II design has been completed and is pending construction contract award.

EXPENDITURES
General Fund
TOTAL
Prof.Serv/Env.ConstructionPM-CM
TOTAL

SOURCE(S) OF FUNDS
EquipmentGrant - Prop 68
UNFUNDEDPark Facility/Development - Fund 125
32 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: April 1, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Lisa Rossi, Administrative Services Director
TITLE: TELECOMMUTE AND ALTERNATIVE WORK SCHEDULE POLICY UPDATES ______________________________________________________________________________ RECOMMENDATION:

Receive an update on the City’s Telecommute and Alternative Work Schedule Policies.

FISCAL IMPACT:

There is no fiscal impact associated with this update.

STRATEGIC ELEMENT:

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

BACKGROUND:

Following labor negotiations in 2018, the City developed an Alternative Work Schedule policy to provide rules and expectations around the previously informal but common practice.

Alternative work schedules allow additional options beyond the traditional 8 hour per day, 5 day per week schedule, in order to provide flexibility for employees, accommodate special circumstances, and in some cases provide necessary coverage for certain City programs and operations.

On March 16, 2020, in response to the Covid-19 Pandemic, San Mateo County, along with five other Bay Area counties, announced “shelter-in-place” orders for all residents, directing everyone to stay inside their homes and limit contact with others as much as possible.

California issued a statewide shelter-in-place order on March 19, 2020, further shutting down non-essential businesses, as well as travel and recreation throughout the state. This decision to close non-essential businesses and require people to stay in their homes was an effort to control the spread of the virus; however, its impact was felt almost immediately on the City of Half Moon Bay. During this time, the City implemented telecommuting procedures, allowing eligible employees to work from home. Significant efforts were made to ensure that tools and technology provided staff with full access to files and the necessary equipment to complete essential work while away from the office.
33 On June 2, 2020, due to budget challenges and furloughs which were being implemented as a result of ongoing impacts from the Pandemic, the City Council adopted a resolution which changed the operating hours at City Hall, including closure to the public on Fridays. This took place during one of the several reopening/reclosing of facilities that the City was forced to initiate.

In late 2021, the City formalized a telecommute policy in conjunction with our return-to-work procedures. At that time, many jurisdictions also chose to implement telecommute policies, and as time progressed and remote work became more widespread across many sectors, including local government, it became effective for recruitment and retention efforts.

In summer 2024, the City closed its administrative annex in order to save on lease, utility, and other costs associated with providing the offsite staff space. This was possible due to the City’s utilization of telecommuting and alternative work schedules, and the ability for some staff to share offices and workspaces within City Hall and other City facilities.

The atmosphere surrounding remote work is one of ongoing debate and adaptation. While many employees and advocacy groups, such as PSHRA (Public Sector HR Association), ICMA (International City/County Management Association), and SHRM (Society of Human Resources Management) advocate flexible work arrangements to enhance work-life balance, productivity, and job satisfaction, some business leaders and policymakers are pushing for a return to in-office work, citing concerns about collaboration, company culture, and efficiency. Remote work policies can also contribute to tension and low-morale among staff within an organization (including the City) due to questions of fairness and equity for those that are not eligible to telecommute. Public opinion remains divided, with workers in industries suited for remote work strongly favoring hybrid models, while others in hands-on professions see less feasibility. As companies and governments refine their policies, the broader discussion continues to evolve, with the goal of striking a balance among economic, social, and technological factors.

In San Mateo County, approximately 75% of jurisdictions offer telecommute and/or alternative work schedule options, as well as many cities throughout California. The most common model within our county allows employees to work two days remotely and three days on-site. At a recent meeting of the Northern California Human Resources Directors group, an executive recruiter emphasized during a presentation on trends in executive recruitment that many public agencies are addressing recruitment and retention concerns by offering remote and flexible work schedules to attract high-level candidates and compete with other employment sectors.

DISCUSSION:

Currently, the City offers both telecommute options and alternative work schedules (4/10 or 9/80) for its employees, and City Hall remains closed to the general public on Fridays.

Key terms of Telecommute Policy:
• Minimum 50% of work hours on-site
• Requires an approved Telecommuting agreement, reviewed regularly 34 • No change of duties or responsibilities to accommodate telecommuting • City may deny, end or modify agreement as needed for City purposes • Must be cost-neutral to the City
• Must be an eligible position
• Must be as available for calls and meetings as in-office time • Must have a designated remote work area
• City will not provide special equipment or tools to allow for remote work Key terms of Alternative Work Schedule Policy:
• Requires an approved Alternative Work Schedule agreement • City may deny, end or modify agreement as needed for City purposes • Must be an eligible position
• Alternative Work Schedule options are as follows:

1. 4/10 Schedule: In a 40-hour work week, the employee works four days, each consisting of 10 hours

2. 9/80 Schedule: In a 40-hour work week, the employee works four days of nine hours each and one day of eight hours, with every other eight-hour day off

3. Modified start and or end times for each workday
Application of the policies requires that all departments/divisions ensure on site staff representation and cross training, to ensure high levels of customer service during regular business hours.

There are classifications and specific roles that are not eligible for telecommuting and/or alternative work schedules due to the nature of their duties, or the needs of their department or division. Telecommute and alternate work schedules are ultimately determined by the department head on a case-by-case basis, within the rules of City policies. In addition, new employees must be with the City for at least six months before an alternate or remote schedule is considered.

The City currently has 40 full-time employees. Of these employees, 40% have telecommuting agreements, and 70% have alternative work schedule agreements. Other than Fridays, when City Hall is closed to the public, on any given day of the week only 20% of staff are eligible to work remotely, with the remaining 80% on site between City Hall, the Ted Adcock Community Center, and the Public Works Corporation Yard. On Fridays with City Hall closed to the public, approximately 40% of staff are on site, with several others telecommuting. Additionally, many City staff work additional hours/days on-site, including evenings and weekends, to fulfill critical needs within the community and ensure high levels of customer service.

CONCLUSION:

In Half Moon Bay, we believe our approach has contributed to improved employee job satisfaction and enhanced productivity and efficiency within our departments. Although we have several ongoing vacancies due to current budget constraints, which has increased individual workloads; deadlines are being met, staff are responsive to requests, and are willing to take on 35 new projects. Daily in-office coverage across all departments and divisions is carefully reviewed to ensure appropriate coverage throughout the work week. Although a majority of employees participate in telecommute and alternate work schedules, many surpass the 50% in-office attendance required by policy. There have been various challenges throughout the implementation of these practices, and adjustments have been required to ensure the policies meet the needs of the community and organization. Staff continue to evaluate the current policies and will make further adjustments as necessary. 36

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