Half Moon Bay City Council
October 7, 2025

CITY COUNCIL AGENDA

CITY COUNCIL REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, OCTOBER 7, 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. Those wishing to speak on a Public Hearing matter will be called forward at the appropriate time during the Public Hearing consideration.

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

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

In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
https://www.halfmoonbay.gov/
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 the City website at https://www.halfmoonbay.gov/315/City-Council-Agendas. 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.

1. ROLL CALL / PLEDGE OF ALLEGIANCE

2. APPROVAL OF AGENDA

3. PROCLAMATIONS AND PRESENTATIONS
3A. DOMESTIC VIOLENCE AWARENESS MONTH PROCLAMATION
3B. HALF MOON BAY HISTORY ASSOCIATION
3C. BAY CITY FLOWERS PROPERTY PRESENTATION

4. MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

5. REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

6. CITY MANAGER UPDATES TO COUNCIL

7. PUBLIC FORUM

8. CONSENT CALENDAR
8A. WAIVE READING OF RESOLUTIONS AND ORDINANCES
8B. APPROVE THE MINUTES OF THE SEPTEMBER 16, 2025 SPECIAL MEETING

ATTACHMENT
8C. APPROVE THE MINUTES OF THE SEPTEMBER 16, 2025 REGULAR MEETING

ATTACHMENT
8D. APPROVE THE MINUTES OF THE DECEMBER 16, 2024 SPECIAL JOINT MEETING

ATTACHMENT
2 8E. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH CHRISTINE BOLAND

FOR SERVICES RELATED TO THE OFFICE OF THE CITY CLERK
Staff Recommendation: Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Christine Boland in the amount of $142,800, for a total not-to-exceed contract amount of $172,800, to provide services related to the office of the City Clerk through June 2026.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
8F. CONSTRUCTION CONTRACT AWARD FOR THE FISCAL YEAR 2025-26 PAVEMENT MANAGEMENT PROJECT (CIP PROJECT NO. 1038)
Staff Recommendation: Adopt a resolution authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, G.

Bortolotto & Company, Inc., of San Carlos, California, in the amount of $659,460 and approve a construction contingency amount not to exceed $131,892 (20%) for the Fiscal Year 2025-26 Pavement Management Project (CIP Project No. 1038) for a total construction budget of $791,352.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
8G. EASTSIDE PARALLEL TRAIL SEGMENT 2 PROGRAM SUPPLEMENT AGREEMENT NO.

F008 WITH CALTRANS
Staff Recommendation: Adopt a resolution authorizing the City Manager to execute Program Supplement Agreement No. F008 with the California Department of Transportation (Caltrans) for the Eastside Parallel Trail Segment 2 Project (CIP Project No. 0595).

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
3 9. WAIVE READING OF RESOLUTIONS AND ORDINANCES

10. ORDINANCES AND PUBLIC HEARINGS

11. RESOLUTIONS AND STAFF REPORTS
11A. COMMUNITY MICROGRID DISCUSSION
Staff Recommendation: Receive a report on Community Microgrid Options and direct staff as appropriate.

STAFF_REPORT
11B. RECEIVE A REPORT AND INFORMATION REGARDING A RESOLUTION

CONSENTING TO THE DISSOLUTION OF THE SAN MATEO COUNTY CITIES

INSURANCE GROUP JOINT POWERS AUTHORITY
Staff Recommendation: Receive a report and information regarding a Resolution Consenting to the Dissolution of the San Mateo County Cities Insurance Group Joint Powers Authority Pursuant to Section 5 of the San Mateo County Cities Insurance Group Joint Powers Agreement.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
11C. COMMERCIAL VITALITY ORDINANCE STUDY SESSION
Staff Recommendation: Receive a presentation on the Draft Commercial Vitality Ordinance establishing standards for blighted and empty commercial storefronts, provide feedback, and direct staff on any revisions or next steps.

STAFF REPORT
ATTACHMENT 1
ATTACHMENT 2

12. COMMISSION / COMMITTEE UPDATES

13. FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS
4 14. CITY COUNCIL REPORTS

15. ADJOURNMENT
5 MINUTES

CITY OF HALF MOON BAY CITY COUNCIL
TUESDAY, SEPTEMBER 16, 2025
TED ADCOCK COMMUNITY CENTER, 535 KELLY AVENUE

1. CONVENE SPECIAL MEETING
Mayor Brownstone called the special meeting to order at 6:00 p.m.

ROLL CALL
PRESENT: Councilmember Jonsson, Nagengast, Penrose, Vice Mayor Ruddock and Mayor Brownstone

2. OPEN SESSION IDENTIFICATION OF CLOSED SESSION ITEMS
City Attorney Engberg announced that the Council would be meeting in Closed Session to discuss the items below.

3. PUBLIC COMMENT ON CLOSED SESSION ITEMS
None.

4. CLOSED SESSION
PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code section 54957) Annual performance evaluation of City Attorney Catherine Engberg PUBLIC EMPLOYEE APPOINTMENT/EXTENSION/SEPARATION (Govt. Code section 54957) Title: City Attorney
PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code section 54957) Annual performance evaluation of City Manager Matthew Chidester PUBLIC EMPLOYEE APPOINTMENT/EXTENSION/SEPARATION (Govt. Code section 54957) Title: City Manager

5. ADJOURN SPECIAL MEETING
Mayor Brownstone adjourned the meeting at approximately 7:00 p.m.

Respectfully Submitted: Approved:

Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 6 MINUTES

CITY COUNCIL REGULAR MEETING
TUESDAY, SEPTEMBER 16, 2025
TED ADCOCK COMMUNITY CENTER, 535 KELLY AVENUE

1. ROLL CALL / PLEDGE OF ALLEGIANCE
Mayor Brownstone called the regular meeting to order at 7:18 p.m. and led the Pledge of Allegiance.

Roll call was taken.

PRESENT: Councilmembers Jonsson, Nagengast, and Penrose, Vice Mayor Ruddock and Mayor Brownstone

2. APPROVAL OF AGENDA
MOTION
Councilmember Penrose moved and Vice Mayor Ruddock seconded a motion to approve the Agenda. The question was called and the motion carried unanimously.

3. PROCLAMATIONS AND PRESENTATIONS
3A. MIDCOAST COMMUNITY COUNCIL UPDATE
Midcoast Community Council Treasurer Bollinger provided an update to the Council. 3B. HISPANIC HERITAGE PROCLAMATION
Management Analyst Acosta presented the Hispanic Heritage Proclamation to Coastside Hope, Puente and Jose Luis Aguirre.
3C. FARMWORKER HOUSING STUDY
Urban Habitat Institute representative Chang presented a Farmworker Housing Study. Farmworkers Uriel and Vicente addressed the Council.

4. MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE Mayor Brownstone announced that Summer’s End celebration would take place Saturday, October 4 at Carter Park and that Pumpkin Festival would be held on Saturday and Sunday, October 18 and 19. 7 5. REPORT OUT FROM RECENT CLOSED SESSION MEETINGS
Mayor Brownstone reported that the Council met in Closed Session on September 16, 2025 to discuss four personnel items:
• PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code section 54957) Annual performance evaluation of City Manager Matthew Chidester; • PUBLIC EMPLOYEE APPOINTMENT/EXTENSION/SEPARATION (Govt. Code section 54957) Title:

City Manager;
• PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code section 54957) Annual performance evaluation of City Attorney Catherine Engberg; and • PUBLIC EMPLOYEE APPOINTMENT/EXTENSION/SEPARATION (Govt. Code section 54957) Title:

City Attorney.

Mayor Brownstone announced that City Manager Chidester’s evaluation would take place at an Special Meeting on October 21, 2025. He also announced the Council voted in Closed Session to discharge the legal firm Shute, Mihaly and Weinberger, effective 90 days after written notice and that the Council would begin looking for a law firm. The motion passed on a 3 - 2 vote, with Mayor Brownstone and Councilmember Penrose dissenting.

6. CITY MANAGER UPDATES TO COUNCIL
6A. SENIOR COASTSIDERS VOLUNTEER OPPORTUNITIES
City Manager Chidester announced that this update would be brought back to a future meeting due to scheduling issues.
6B. ABODE
Management Analyst Acosta gave an update on Abode services and council asked questions.

7. PUBLIC FORUM
The following individuals addressed the Council:
• Deborah Penrose
• Jimmy Benjamin
• Harvey Rarback
• Joaquin Jimenez
• Krystlyn Geidt

8. CONSENT CALENDAR
8 The Consent Calendar consisted of the following items:
8A. WAIVE READING OF RESOLUTIONS AND ORDINANCES
8B. APPROVE THE MINUTES OF THE SEPTEMBER 2, 2025 SPECIAL MEETING 8C. APPROVE THE MINUTES OF THE SEPTEMBER 2, 2025 REGULAR MEETING 8D. UPDATED RECORDS RETENTION SCHEDULE (Resolution 2025 – 64) 8E. RESOLUTION OF SUPPORT FOR GRANT APPLICATION TO THE SAN MATEO COUNTY TRANSPORTATION AUTHORITY FOR THE MEASURE A AND W 2025 HIGHWAY PROGRAM FOR THE HIGHWAY 1 MAIN STREET TO KEHOE AVENUE PROJECT (Resolution 2025 - 65) 8F. WARRANTS FOR THE MONTH OF AUGUST 2025
MOTION
Councilmember Penrose moved and Mayor Brownstone seconded a motion to approve the Consent Calendar. The question was called and the motion carried unanimously.

9. ORDINANCES AND PUBLIC HEARINGS
None.

10. RESOLUTIONS AND STAFF REPORTS
10A. FINANCIAL REPORT FOR THE QUARTER ENDED ON JUNE 30, 2025 Finance Manager Stiles presented the staff report to the Council. The Council discussed the item.

MOTION
Mayor Brownstone moved to accept the Financial Report for the quarter ended on June 30, 2025 and Vice Mayor Ruddock seconded the motion. The question was called and the motion carried unanimously.
10B. OPPORTUNITY CENTER OF THE COASTSIDE
Economic and Community Vitality Manager Decker presented the staff report to the Council. The Council asked questions and discussed the item.

The following individuals addressed the Council:
• Sophia Layne
• Nancy Fontana
• Eric Vettel
MOTION
9 Mayor Brownstone moved to adopt Resolution 2025-66, Authorizing the City Manager to: 1) fund utilities and janitorial services at the Opportunity Center of the Coastside through January 2026 in an amount not to exceed $10,000, 2) Extend the professional service agreements with JobTrain, Renaissance Entrepreneurship Center, the Chamber of Commerce, and American Energy Society with a term ending January 15, 2026; and 3) Use technical funds from the Community Services Finance Assistance grant. Councilmember Penrose seconded the motion. The question was called and the motion carried unanimously.
10C. COMMUNITY MICROGRID DISCUSSION
Public Works Bozorginia presented his staff report to the Council. The Council asked questions, discussed the item.

The following individuals addressed the Council:
• Jimmy Benjamin

11. COMMISSION / COMMITTEE UPDATES
None.

12. FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS
None.

13. CITY COUNCIL REPORTS
None.

14. ADJOURNMENT
Mayor Brownstone adjourned the meeting at 10:03 p.m.

Respectfully Submitted: Approved:

Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 10 MINUTES

CITY OF HALF MOON BAY

CITY COUNCIL, PLANNING COMMISSION AND

ARCHITECTURAL ADVISORY COMMITTEE

SPECIAL JOINT MEETING
MONDAY, DECEMBER 16, 2024
TED ADCOCK COMMUNITY CENTER, 535 KELLY AVENUE

ROLL CALL / PLEDGE OF ALLEGIANCE
The meeting was called to order at 7:45 p.m. by Councilmember Brownstone, who welcomed the City Council, Planning Commissioners and members of the Architectural Advisory Committee to the special joint meeting.

Roll call was taken with the following present, constituting a quorum for the three bodies:

City Councilmembers present:

Robert Brownstone, Mayor
Debbie Ruddock, Vice Mayor
Patric Jonsson, Councilmember
Paul Nagengast, Councilmember
Deborah Penrose, Councilmember
Planning Commissioners present:

Margaret Gossett, Chair
Hazel Joanes, Vice Chair
David Gorn, Commissioner
Rick Hernandez, Commissioner
Steve Ruddock, Commissioner
Architectural Advisory Committee
Chad Hooker, Committee Member
Linda Poncini, Committee Member

Absent: Steve Kikuchi, Committee Member
11 December 16, 2024
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1. SPECIAL WORK SESSION: CITY COUNCIL / PLANNING COMMISSION / ARCHITECTURAL

ADVISORY COMMITTEE

2. 1.A. JOINT MEETING TO DISCUSS STATE HOUSING LEGISLATION AND CONSIDER ADOPTION OF

INTERIM OBJECTIVE DESIGN STANDARDS FOR MULTI-FAMILY DEVELOPMENT City Manager Chidester introduced the session, explaining that while objective design standards (ODS) had been in development for some time, the City Council had recently indicated urgency to have something in place before year-end due to new state legislation taking effect January 1, 2025.

He noted that the draft standards in the council packet were intended as a starting point for discussion.

State Housing Legislation Presentation
Mike Noce, Housing Programs Manager, provided background on state housing laws:
• Over 300 new housing laws have been passed in California since 2017 • Half Moon Bay's Regional Housing Needs Allocation (RHNA) for cycle 6 is 480 units • SB 35 (2017) requires ministerial approval for projects meeting certain criteria, but Half Moon Bay was previously exempt as it is entirely within the coastal zone • SB 423 extends SB 35 provisions through 2036 and will apply to the coastal zone beginning January 1, 2025
• Density Bonus Law allows developers to exceed zoning density limits when including affordable units
• 100% affordable projects can receive an 80% density bonus or unlimited density (super density bonus) with an additional 33 feet/3 stories in height if near a major transit stop • Objective design standards cannot be used to down-zone properties Mr. Noce presented a map showing sites in Half Moon Bay where SB 423 would apply and highlighted three specific properties:
• 940 Main Street - Mid-Pen Housing has submitted a Measure D application for 52 affordable units in a 3-story building
• 498 Kelly Avenue (CUSD property) - A preliminary application for 60 units has been received; proposed at 4 stories
• 740 Purissima Street - No application yet, but the property is for sale and is included in the Housing Element as an opportunity site
Mr. Noce noted that the continual theme from the state legislature is diminishing local control, which appears to be purposeful.

During discussion of the presentation, Planning Commissioners raised questions about:
12 December 16, 2024
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Committee/Commission Minutes

• The potential impact on Measure D allocations if a developer later decided to pursue a super density bonus
• Whether SB 35/423 would apply to sites with existing rental housing • The definition of "major transit stop" and changes to that definition coming January 1, 2025 Vice Mayor Ruddock expressed concern about how "major transit stop" has been interpreted, noting that the state had specifically struck out language about on-demand transit service in recent legislation. She advocated for the city to explicitly state it will not use on-demand transit to qualify projects for super density bonus.

City Attorney Engberg suggested language could be added to the resolution to direct staff to apply existing state statute regarding major transit stops.

Objective Design Standards Presentation
Planner Wilson introduced the interim objective design standards, explaining they would be temporary while staff continued to work on final standards in 2025. She outlined the process that had been undertaken since August 2024, including a study session with Planning Commission and AAC in November.

Dana Ayers from MIG Consultants presented the draft interim standards, highlighting:
• The standards were based on observations of Half Moon Bay's existing architecture, which includes a variety of styles and features
• The city's existing development regulations (setbacks, lot coverage, etc.) would remain in place, with ODS supplementing them
• The standards were developed using input from site visits, meetings with a subcommittee, and public feedback
• A two-tiered approach was adopted: one set of standards for small lot development (2-4 units) based on existing single-family design guidelines, and another for larger developments (5+ units)
The presentation covered the eight sections of the ODS:
• Site Layout and Building Orientation - Prioritizing entrances facing public streets • Massing and Articulation - Providing a menu of options including balconies, material changes, plane breaks, etc.
• Building Materials and Colors - Requiring a variety of materials and at least two colors • Entrances, Windows, Doors - Including standards for framing, projections, and privacy • Roof Treatments - Limiting buildings to three roof forms and addressing flat roofs • Off-Street Parking and Garages - Deemphasizing garages and reducing parking in front setbacks
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• Landscaping - Prioritizing native plants and requiring street trees • Other Site and Building Features - Standards for screening utilities, mailboxes, etc.

Throughout the presentation, committee members provided feedback and suggested revisions:
• Remove the requirement that upper floors be limited to 80% of the first floor's footprint • Remove redundant language regarding windows and openings • Remove vinyl fencing as an allowable material
• Add membrane roofing as an allowable material
• Limit stucco to 60% of exterior walls on large lot developments • Replace specific language about pedestrian access with reference to Title 24 standards • Add requirement for decomposed granite in tree wells and root barriers Planning Commissioner Hernandez suggested adding standards for units accommodating elderly and physically impaired residents. After discussion, it was agreed this would be addressed in future phases of the ODS.

The following individuals addressed the council:
• Dan Haggarty
After the comprehensive review of the document, staff compiled a list of all requested modifications.

City Attorney Engberg drafted language for the Resolution addressing the major transit stop issue:
"Whereas AB 2553, which is effective January 1, 2025, modifies the definition of 'major transit stop' as including the intersection of two or more major bus routes with a frequency of service interval of 20 minutes or less during peak commute periods, and does not include on-demand transit to achieve that frequency of service.

Now, Therefore Be it Further Resolved that consistent with applicable state statutory definitions, the city will not use on-demand transit to qualify a location as a 'major transit stop' unless directed otherwise by state law."
Mayor Brownstone moved to adopt the Resolution as amended by staff. The motion was seconded by a Councilmember Nagengast. The motion passed unanimously by voice vote.

ADJOURN SPECIAL MEETING
The meeting was adjourned at 10:50 p.m.
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________________________________ ____________________________________ Maggie Rodreguiz, Asst. City Clerk Robert Brownstone, Mayor 15

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 7, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
TITLE: AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH CHRISTINE

BOLAND FOR SERVICES RELATED TO THE OFFICE OF THE CITY CLERK _____________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Christine Boland in the amount of $142,800, for a total not-to-exceed contract amount of $172,800, to provide services related to the office of the City Clerk through June 2026.

FISCAL IMPACT:

The not-to-exceed amount of $172,800 will be covered through salary savings from the vacant City Clerk/ Communications Director position in the FY 2025-26 Adopted Budget. Since the execution of the original PSA, the City has expended $22,107.50.

STRATEGIC ELEMENT:

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

BACKGROUND:

Since April 14, 2025, the City Clerk/Communications Director position has been vacant, with responsibilities of the position and department being handled by the Assistant City Clerk and other staff. Given the City’s ongoing efforts to address a structural deficit, and plans to conduct an organizational assessment, it was determined that hiring a consultant to assist with important responsibilities within the Clerk’s Office would be necessary. Additionally, obtaining expertise would assist in assessing and updating the City’s policies and procedures related to the clerk function, as well as continuing to train and develop department staff.

On July 27, 2025, the City Manager executed a Professional Services Agreement with Christine Boland, MPA, CMC, a seasoned and retired local government expert and Half Moon Bay native, for services related to the Office of City Clerk. Given the City Manager’s limited authority to execute PSA agreements, the initial agreement was for an amount not-to-exceed $30,000, which expires on November 1, 2025. The scope of the agreement is attached as Attachment 2.

Since entering into the Contract, Ms. Boland has begun assessing the City’s current document 16

management systems, policies and procedures, and initiated adjustments to many. She’s also provided coaching and development for existing staff, and made recommendations for future training and development. Given her level of production, and the important mentoring and training she has provided to department staff, the City desires to enter into an amendment to the PSA, to allow continued services to the City.

DISCUSSION:

The City and Ms. Boland have negotiated Amendment No. 1 to the Professional Services Agreement dated July 27, 2025, externing the Time of Performance to June 30, 2026, and increasing the Compensation to not exceed $172,800, billed for actual time only at $180 per hour. As staff development continues, the organizational assessment determines the future staffing needs and structure of the department, and workloads evolve, staff will evaluate the role and scope of Ms. Boland’s PSA, and may terminate the PSA early in accordance with the agreement, if the services are deemed no longer necessary.

ATTACHMENTS:

1. Resolution

2. Exhibit A: Scope of Work (from the Professional Services Agreement) 17 RESOLUTION NO. C-2025-
RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE

PROFESSIONAL SERVICES AGREEMENT WITH CHRISTINE BOLAND IN THE AMOUNT OF $142,800, FOR A TOTAL NOT-TO-EXCEED CONTRACT AMOUNT OF $172,800, TO PROVIDE SERVICES RELATED TO THE OFFICE OF THE CITY CLERK THROUGH JUNE 2026.

WHEREAS, the City Manager approved a professional services agreement with Christine Boland on July 27, 2025, for services related to the Office of City Clerk, which expires on November 1, 2025; and
WHEREAS, the City has been pleased with the high level of service and production that Ms. Boland has provided; and
WHEREAS, the City desires to retain Ms. Boland to continue the services included in the Scope of Services included as Exhibit A to the Professional Services Agreement; and WHEREAS, the City and Ms. Boland have negotiated an amendment to the professional services agreement, increasing the not-to-exceed amount and extending the Term.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Christine Boland in the amount of $142,800, for a total not-to-exceed contract amount of $172,800, to provide services related to the office of the City Clerk through June 2026. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of October 2025, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ATTEST: APPROVED:
__________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 18 Exhibit A
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20

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 07, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim City Engineer
Mike Burnfield, Assistant Engineer
TITLE: CONSTRUCTION CONTRACT AWARD FOR THE FISCAL YEAR 2025-26 PAVEMENT MANAGEMENT PROJECT (CIP PROJECT NO. 1038)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, G. Bortolotto & Company, Inc., of San Carlos, California, in the amount of $659,460 and approve a construction contingency amount not to exceed $131,892 (20%) for the Fiscal Year 2025-26 Pavement Management Project (CIP Project No. 1038) for a total construction budget of $791,352.

FISCAL IMPACT:

Available funding includes an estimated $635,000 in combined revenue from the Senate Bill 1 (SB-1) Road Maintenance and Rehabilitation Account (RMRA) and Highway Users Tax Account (HUTA). The remaining balance of $156,352 would be covered by available Measure A sales tax funds. The project would have no impact on the City’s General Fund.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Project scope consists of performing pavement rehabilitation including cold-planing, asphalt concrete overlay, minor concrete paving, thermoplastic striping, and other related work on the following streets as part of the base bid:
• Miramontes Avenue from Alsace Lorraine Avenue to the western cul-de-sac (PCI 61) • Alsace Lorraine Avenue from Kelly Avenue to Valdez Avenue (PCI 69) • Potter Avenue from Miramontes Avenue to Valdez Avenue (PCI 75) • Myrtle Street from Third Avenue to Second Avenue (PCI 63) 21

• Second Avenue from Filbert Street intersection north to the mid-block between Filbert Street and Myrtle Street (PCI 42)
• Filbert Street from Second Avenue to Railroad Avenue (PCI 63) • Limited areas of Granelli Avenue and Valdez Avenue are also included.

The above-mentioned streets were selected for the project based on recommendations included in the 2024/2025 Pavement Management Report prepared for the City by AMS Consulting, following visual inspection by staff.

As highlighted in the AMS analysis, a strategic approach to preventative maintenance delivers exceptional value by extending pavement life and maintaining safe driving conditions. Proactive investments in streets while they remain in fair-to-good condition can prevent costly reconstruction and provide significant long-term savings to taxpayers.

On September 9, 2025, the City publicly advertised the project for construction after receiving authorization from Council to do so on September 2, 2025.

BID SUMMARY:

The City received thirteen (13) bids before the scheduled bid opening time and date of 3:00 PM on Wednesday, October 1, 2025. The 5 lowest bids and engineer’s estimate are summarized as follows:

Bidder Base Bid
Engineer’s Estimate $990,006.00
G. Bortolotto & Company $659,460.00
Mission Constructors Inc. $734,618.72
O.C. Jones & Sons $743,405.00
Goodfellow Bros. $759,785.00
Radius Earthwork, Inc. $797,700.00
DISCUSSION:

The lowest responsive and responsible bidder, G. Bortolotto & Company, Inc., base bid of $659,460 is approximately 33% below the Engineer’s Estimate. G. Bortolotto & Company, Inc, is a San Mateo County contractor who has an extensive resume of work including street and sidewalk reconstruction throughout the Bay Area. Staff have reviewed the bid from G.

Bortolotto & Company, Inc. and determined that it is acceptable and free from material discrepancies. Construction contingencies of 20% of the contract are also requested for the project.

The anticipated construction schedule is from October 20 through December 31, 2025. Work hours will be Monday through Friday, 7:00 a.m. to 5:00 p.m., with more restrictive hours in school zones. The contractor is responsible for providing traffic control and notifying residents 22

and businesses impacted by scheduled work. Staff will also work proactively with the Cabrillo Unified School District to minimize disruptions surrounding Hatch Elementary School.

Staff recommends awarding the contract to the lowest responsive and responsible bidder, G.

Bortolotto & Company, in the amount of $659,460 and approve a construction contingency amount not exceeding $131,892 (20%) for the Fiscal Year 2025-26 Pavement Management Project (CIP Project No. 1038).

ATTACHMENTS:

1. Resolution

2. Summary of Bids

3. Construction Bid Set (Plans)
23

Resolution No. C-2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT WITH G.

BORTOLOTTO & COMPANY, INC., OF SAN CARLOS, CALIFORNIA, IN THE AMOUNT OF $659,460, APPROVE A CONSTRUCTION CONTINGENCY IN AN AMOUNT NOT EXCEEDING 20%, OR $131,892 OF THE CONTRACT AWARD AMOUNT FOR POTENTIAL CHANGE ORDERS FOR THE FISCAL YEAR 2025-26 PAVEMENT MANAGEMENT PROJECT (CIP PROJECT NO. 1038) FOR A TOTAL CONSTRUCTION BUDGET OF $791,352.

WHEREAS, the Fiscal Year 2025-26 Pavement Management Project scope consists of performing cold-planing, asphalt concrete overlay, minor concrete paving, thermoplastic striping, and other related work, within the project limits; and WHEREAS, the City advertised the project on Tuesday, September 9, 2025, and opened thirteen (13) bids that were received at the scheduled time, date, and place, as set forth in the Public Contract Code for the Fiscal Year 2025-26 Pavement Management Project at 3:00 PM on Wednesday, October 1, 2025; and
WHEREAS, the lowest responsive and responsible bid for the base bid was submitted by G. Bortolotto & Company, Inc., of San Carlos, California, in the amount of $659,460; and NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby:
1) Accepts the submitted thirteen (13) responsive bids; and 2) Authorizes the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, G. Bortolotto & Company, Inc., of San Carlos, California, in the total amount of $659,460; and 3) Approves the construction contingency in an amount not exceeding 20%, or $131,892, of the contract award amount for a total construction budget of $791,352; for the Fiscal Year 2025-26 Pavement Management Project (CIP Project No. 1038).
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the October 7, 2025, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
24

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 25 26
DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS OF SHEETS
C:\Users\MikeBurnfield\OneDrive - Half Moon Bay\Public Works Records Center - PW Engineering\Capital Projects\Street Improvements\Pavement Program\2025\11_DWG\PTAP-SHEETS.dwg Sep 09,2025 - 9:36am, MikeBurnfield MAZIAR BOZORGINIA APPROVED BY: CITY OF HALF MOON BAY CITY ENGINEER 501 MAIN STREET HALF MOON BAY CA 94019 650-726-7177 hmbcity.com DATE 09-05-2025 N/A MB CIP NO. 1038 FY 25/26 PAVEMENT MANAGEMENT PROJECT
HALF MOON BAY, CA 1 5 FY 25/26 PAVEMENT MANAGEMENT PROJECT IN SAN MATEO COUNTY IN THE CITY OF HALF MOON BAY C0.0

TITLE SHEET, NOTES, LEGEND AND
ABBREVIATIONS Know what'sbelow. Callbefore you dig. R SAN FRANCISCO BAY PACIFIC OCEAN CITY OF HALF MOON BAY 27 DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS OF SHEETS C:\Users\MikeBurnfield\OneDrive - Half Moon Bay\Public Works Records Center - PW Engineering\Capital Projects\Street Improvements\Pavement Program\2025\11_DWG\PTAP-SHEETS.dwg Sep 09,2025 - 9:36am, MikeBurnfield MAZIAR BOZORGINIA APPROVED BY: CITY OF HALF MOON BAY CITY ENGINEER 501 MAIN STREET HALF MOON BAY CA 94019 650-726-7177 hmbcity.com DATE 09-05-2025 N/A MB CIP NO. 1038 FY 25/26 PAVEMENT MANAGEMENT PROJECT
HALF MOON BAY, CA 2 5 C1.0

SIGNING, STRIPING, AND PAVING PLAN
28 DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS OF SHEETS C:\Users\MikeBurnfield\OneDrive - Half Moon Bay\Public Works Records Center - PW Engineering\Capital Projects\Street Improvements\Pavement Program\2025\11_DWG\PTAP-SHEETS.dwg Sep 09,2025 - 9:36am, MikeBurnfield MAZIAR BOZORGINIA APPROVED BY: CITY OF HALF MOON BAY CITY ENGINEER 501 MAIN STREET HALF MOON BAY CA 94019 650-726-7177 hmbcity.com DATE 09-05-2025 N/A MB CIP NO. 1038 FY 25/26 PAVEMENT MANAGEMENT PROJECT
HALF MOON BAY, CA 3 5 C1.1

SIGNING, STRIPING, AND PAVING PLAN
29 DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS OF SHEETS C:\Users\MikeBurnfield\OneDrive - Half Moon Bay\Public Works Records Center - PW Engineering\Capital Projects\Street Improvements\Pavement Program\2025\11_DWG\PTAP-SHEETS.dwg Sep 09,2025 - 9:36am, MikeBurnfield MAZIAR BOZORGINIA APPROVED BY: CITY OF HALF MOON BAY CITY ENGINEER 501 MAIN STREET HALF MOON BAY CA 94019 650-726-7177 hmbcity.com DATE 09-05-2025 N/A MB CIP NO. 1038 FY 25/26 PAVEMENT MANAGEMENT PROJECT
HALF MOON BAY, CA 4 5 C2.0

CONSTRUCTION DETAILS
30 DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS OF SHEETS C:\Users\MikeBurnfield\OneDrive - Half Moon Bay\Public Works Records Center - PW Engineering\Capital Projects\Street Improvements\Pavement Program\2025\11_DWG\PTAP-SHEETS.dwg Sep 09,2025 - 9:36am, MikeBurnfield MAZIAR BOZORGINIA APPROVED BY: CITY OF HALF MOON BAY CITY ENGINEER 501 MAIN STREET HALF MOON BAY CA 94019 650-726-7177 hmbcity.com DATE 09-05-2025 N/A MB CIP NO. 1038 FY 25/26 PAVEMENT MANAGEMENT PROJECT
HALF MOON BAY, CA 5 5 C3.0

COUNTY BMP FACT SHEET
31

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 07, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim City Engineer
TITLE: EASTSIDE PARALLEL TRAIL SEGMENT 2 PROGRAM SUPPLEMENT AGREEMENT NO. F008 WITH CALTRANS
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Program Supplement Agreement No. F008 with the California Department of Transportation (Caltrans) for the Eastside Parallel Trail Segment 2 Project (CIP Project No. 0595).

FISCAL IMPACT:

The agreement with Caltrans allows reimbursement of costs (including project management) at

88.53 percent of the approved expenditures up to $1,500,000 for the Preliminary Engineering Phase of the project. Sufficient matching funds of $175,000 are included in the City’s approved Capital Improvement Program budget. The agreement will otherwise have no impact on the City’s General Fund.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Eastside Parallel Trail – Segment 2 (CIP 0595) represents the last section of class I multimodal trail along the Highway 1 corridor remaining to be designed in the north half of the City.

On the north end the trail would tie into the existing Naomi Patridge Trail at Ruisseau Francais Avenue. The trail would extend southward parallel to Highway 1, across Frenchmans Creek with an approximately 200 ft span bicycle/pedestrian bridge, and continue south to Spindrift Way where it would connect to the planned trail extension being completed as part of the Highway 1 North Safety and Operations project (CIP 0538). The project is also identified in the City’s adopted 2019 Bicycle and Pedestrian Master Plan
32

In May of 2022, after extended coordination and letters of support to various local representatives in the United States House of Representatives, the City of Half Moon Bay received a letter from the office of Representative Anna G. Eshoo, confirming that the project had been included in her recommended list of projects to be considered in the Fiscal Year 2023 U.S. Congressional Appropriations Bill. The letter also noted that being on a recommendation list does not necessarily guarantee inclusion in the Appropriations Bill.

In December 2022, the FY 2023 Appropriations Bill was released in Congress, and included the project under the Department of Transportation, Community Project Funding / Congressionally Directed Spending (CPFCDS) program, which is administered locally by the Caltrans Division of Local Assistance.

In January 2024, the City submitted and received approval of an initial CPFCDS application to Caltrans Local Assistance for funding of $1,500,000 for the Preliminary Engineering phase of the project. The City has an 11.47% match obligation for the project and subsequently programmed a $175,000 match into the Capital Improvement Program budget for the FY 2024-25 CIP which was adopted by City Council on June 18, 2024.

In May 2025, Caltrans Local Assistance issued the Notice to Proceed (also known as an E-76) for the Preliminary Engineering phase of the project. In the same month, they provided a copy of the draft Program Supplement Agreement F008, included as Attachment 2.

The Supplement Agreement would be an amendment to the funding Master Agreement with Caltrans which was approved by City Council on May 15, 2018, and executed on June 11, 2018, as Master Agreement No. 04-5357F15. The original agreement was presented and executed in conjunction with Supplement Agreement F006, which was a funding agreement for a federal grant for restoration/replacement of the Main Street Bridge which was never completed and eventually closed out with Local Assistance.

DISCUSSION:

The proposed agreements with Caltrans will allow reimbursement of costs (including project management) at 88.53 percent of approved expenditures up to $1,500,000 for Preliminary Engineering Phase of the project or up to $1,325,000 in Federal funding.

Caltrans, as the administering Agency, has presented Program Supplement No. F008 for approval and execution by the City. These agreements define the terms and conditions for the federal reimbursements for the project and have been reviewed and concurred by the City Attorney.

Following execution of these agreements, the City will finalize preparation of a Request-forProposals (RFP) for professional services for the preparation of Preliminary Engineering scope of work items for the project, including preliminary geotechnical investigation, stormwater hydrology/hydraulic study of Frenchmans Creek, CEQA/environmental technical studies, 30% 33

design drawings, and other necessary preliminary documents associated with the anticipated Caltrans planning approval via the Design Engineering Evaluation Report (DEER) process.

ATTACHMENTS:

1. Resolution

2. Program Supplement Agreement F008

3. Caltrans Master Agreement 04-5357F15
34 Resolution No. C-2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE PROGRAM SUPPLEMENT AGREEMENT F008 WITH THE

CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE EASTSIDE PARALLEL TRAIL SEGMENT 2 PROJECT (CIP PROJECT NO. 0595)
WHEREAS, on May 16, 2022, the City received confirmation from Congressmember Anna G. Eshoo’s office that Eastside Parallel Trail Segment 2 project (also referred to as the Highway 1/Frenchman’s Creek Intersection and Bike/Ped Improvements project) would be submitted for consideration by the House Appropriations Committee for inclusion in the Fiscal Year 2023 U.S. Congressional Appropriations Bill; and
WHEREAS, on December 19, 2022, the FY 23 Appropriations Bill was released by Congress, which included a Congressional Earmark for the project under the U.S. Department of Transportation Community Project Funding / Congressionally Directed Spending (CPFCDS) Program; and
WHEREAS, the California Department of Transportation (Caltrans) Division of Local Assistance provides fund management and oversight to local agencies receiving federal funding through the CPFCDS program; and
WHEREAS, on May 23, 2025, Caltrans issued a Notice to Proceed for the Preliminary Engineering Phase of the project; and
WHEREAS, on May 30, 2025, Caltrans presented for the City’s consideration Program Supplement No. F008 to the City’s Master Agreement, originally approved by City Council on May 15, 2018, and executed on June 11, 2018, as Master Agreement No. 04-5357F15.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby approves and authorizes the City Manager to execute Program Supplement Agreement No. F008 with the California Department of Transportation for the Eastside Parallel Trail Segment 2 Project (CIP Project No. 0595).
***************************************************************** I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 7th day of October 2025, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
35 ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 36 F008
FOR FEDERAL-AID PROJECTS NO 04-5357F15
0424000246
May 30, 2025
04-SM-1-HMBY
CPFL-5357(012)
5357
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 06/11/2018 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the Administering Agency on (See copy attached).

The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.

East side of State Route 1, from Ruisseau Francais (Frenchman Creek intersection) to Spindrift way.

New multi-use Class I Trail 0.4(MILES)
Estimated Cost Federal Funds Matching Funds
Y926 $1,500,000.00

CITY OF HALF MOON BAY
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$1,695,000.00 $195,000.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
$1,500,000.00
Program Supplement 04-5357F15-F008- ISTEA 1Page of 7
05/30/2025
37 SPECIAL COVENANTS OR REMARKS
04-SM-1-HMBY
CPFL-5357(012)

1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.

B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).

C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.

D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.

Failure to do so will cause a delay in the State processing invoices for the construction phase.

Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.

E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

Program Supplement 04-5357F15-F008- ISTEA Page 2 of 7
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F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

G. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance.

ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date.

H. As a condition for receiving federal-aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. Exclusions can be found at www.sam.gov.

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2. A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal-aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.

B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.

C. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

D. Indirect Cost Allocation Plan/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE (Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/ICRP approval procedures established by STATE.

E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

F. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty (30) days of such invoice.

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G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.

H. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.

I. Every sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), and other applicable STATE and FEDERAL regulations.

J. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.

K. STATE reserves the right to conduct technical and financial audits of PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by the following paragraph:

ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested.

All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT, and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of submission of the final expenditure report by the STATE to the FHWA.

L. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system
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of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices set to or paid by STATE.

M. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $750,000 or more in Federal Funds in a single fiscal year of the Catalogue of Federal Domestic Assistance.

N. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.

O. ADMINISTERING AGENCY shall not award a non-A&E contract over $5,000, construction contracts over $10,000, or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.

P. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions B, C, F, H, I, K, and L under Section 2 of this agreement.

3. In the event that construction of this project of the initial federal authorization for right of way is not started by the close of the twentieth fiscal year following the fiscal year in which the right of way is authorized, the ADMINISTERING AGENCY shall repay the Federal Highway Administration through Caltrans the sum of Federal funds paid under the terms of this agreement.

Authorizing the ROW phase of a project as Advance Construction does not exempt the project from the provisions of 23 U.S.C. 108(a)(2), and 23 CFR 630.112(c)(1).

4. Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this agreement, the ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractor, (hereinafter referred to as the "contractor") agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

Pertinent Nondiscrimination Authorities:

A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Program Supplement 04-5357F15-F008- ISTEA Page 6 of 7
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Part 21.

B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); C. Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), (prohibits discrimination on the basis of sex);
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
H. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); J. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
K. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 7, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
From: Dale Leda, Interim City Engineer
TITLE: COMMUNITY MICROGRID DISCUSSION
______________________________________________________________________________ RECOMMENDATION:

Receive a report on Community Microgrid Options and direct staff as appropriate.

STRATEGIC ELEMENT:

This recommendation supports all Elements of the Strategic Plan.

FISCAL IMPACT:

There is no fiscal impact associated with this discussion. If the City proceeds with a grant application and is eventually awarded and accepts a grant, the fiscal impact to the City and matching fund requirements will be dependent on the size, selected location and anticipated cost of developing the microgrid and related facilities. Peninsula Clean Energy’s contribution toward funding is presently unknown.

BACKGROUND:

Half Moon Bay has a history of infrastructure challenges, including power and internet outages during major storm events. The City has made efforts to shore up its critical facilities, including redundant internet services, and backup generators to keep City operations running during emergencies. PG&E and the City have an agreement in place that allows the use of the library facility as a Community Resource Center during outages, and PG&E has installed infrastructure to facilitate the use when needed.

In the past 10 years, the frequency and duration of power outages has increased, especially in the southern portion of town, beginning near the intersection of Highway 1 and south Main Street. Data collected by residents in the area and confirmed by PG&E shows that the neighborhoods south of town, which include Ocean Colony, Cañada Cove (senior housing), and Moonridge (farmworker housing) - as well as several hotels and restaurants that support the local economy - are some of the most impacted by outages in the entire County. These outages put many vulnerable residents at risk and also have significant economic impacts on businesses and City revenues. Council, Staff, and residents have been working with the County, PG&E, PCE, and others to identify solutions that will 77 make the electrical grid more reliable and more resilient in our changing climate. Recent successes with PG&E will likely result in several small, short-term improvements, but larger, more creative solutions are necessary to permanently resolve these issues.

In response, the City is working with Peninsula Clean Energy’s Innovation Strategy team to submit an application with PG&E for funding the design and construction of a community microgrid under California Public Utility Commission’s Microgrid Incentive Program (MIP).

There are three main components to consider in a community microgrid under MIP:
• Common Feeder – the microgrid should be limited to a portion of PGE’s electrical system located on a common distribution feeder that can be isolated from the rest of grid. Isolation switches may be needed depending on the limits of the microgrid. • Power Generation –power to the microgrid during outages is supplied by photovoltaic solar panels which are based on the anticipated demand from the facilities on the grid. Adequate land or roof area must be available to install the required solar field. • Storage – battery facilities are needed to provide additional energy storage during times of inadequate sunlight. Between power generation and storage, the microgrid must be able to provide a minimum of 24 hours of energy based on the proposed area’s typical load profile.

The first critical step in the application process is to define the final proposed microgrid boundary, which must be provided to PGE by October 15, 2025.

Final MIP applications are due December 17, 2025.

DISCUSSION:

Staff is requesting feedback from City Council on whether to move forward with an application and a proposed microgrid boundary to submit to PG&E before the October 15th deadline.

Peninsula Clean Energy has prepared four (4) draft options for a proposed microgrid boundary based on initial feedback from Council and City Staff, consideration of the layout of Half Moon Bay’s distribution and feeder network, and MIP scoring criteria.

The greatest constraint to the development of efficient and effective options for microgrid boundaries is related to the common feeder requirement for the project. The City is served by three separate distribution feeders, each branching from the existing PGE substation located at 123 Main Street (near Hassett Ace Hardware).
• Feeder 1101 includes the area east of Highway 1 between Lewis Foster Drive and the northern City limits.
• Feeder 1102 includes the area west of Highway 1 between Valdez Avenue and the northern City limits, and also includes a small branch to the east along Highway 92 and Stone Pine Road. 78 • Feeder 1103 includes the area west of Highway 1 and south of Valdez to the south City limits, and the area east of Highway 1 and south of Stone Pine Road to the south City limits.

Many of the opportunities to include Half Moon Bay’s most critical facilities are encumbered by their being served by different feeders, making them unsuitable for microgrid development.

The second significant constraint involves the siting of PV solar panel and battery facilities. Each of the proposed microgrid options would require significant nearby acreage of undeveloped land, roof top, or uncovered parking area for the placement of panels and battery storage. The vast majority of undeveloped lands in Half Moon Bay have restrictive zoning, limited their use to agriculture or open space, contain sensitive habits such as wetlands or foraging ground for protected species, or face other challenges related to the City’s adopted Local Coastal Land Use Plan.

Finally, the microgrid boundary must consider competitive scoring guidelines in the MIP. Application scoring is divided into three categories:
• Community Benefit – based on proposed microgrid’s benefit to low-income and medically vulnerable customers and quantity of included critical facilities (fire and police stations, health care/medical facilities, emergency services, energy and utilities, water and wastewater treatment and storage, transportation, schools, community centers and similar government facilities.
• Resilience Benefits – based on the outage risk and the proposed microgrid’s ability to supply energy beyond the 24-hour minimum requirement.
• Environmental Benefits – considers how power generation provided by the microgrid compares to existing clean energy sources in the same area and whether the microgrid will replace fossil fuel backup power supply to at least one critical facility.

Amongst the options being presented by PCE, there is no clear winner which microgrid boundary most effectively meets the city’s goals, satisfies the requirements of MIP, and would score competitively.

Staff seeks Council’s input on the presented options and direction on how to proceed with the MIP application.
79

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 7, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Catherine Engberg, City Attorney
Lisa Rossi, Administrative Services Director
TITLE: RECEIVE A REPORT AND INFORMATION REGARDING A RESOLUTION

CONSENTING TO THE DISSOLUTION OF THE SAN MATEO COUNTY CITIES

INSURANCE GROUP JOINT POWERS AUTHORITY
______________________________________________________________________________ RECOMMENDATION:

Receive a report and information regarding a Resolution Consenting to the Dissolution of the San Mateo County Cities Insurance Group Joint Powers Authority Pursuant to Section 5 of the San Mateo County Cities Insurance Group Joint Powers Agreement.

FISCAL IMPACT:

There is no fiscal impact with the acceptance of this report. After the dissolution agreement is approved, but prior to the dissolution of the Cities Insurance Group on December 31, 2025, staff will present the fiscal impact of choosing a new third-party administrator for workers' compensation. As stated below, coverage continues during this process.

STRATEGIC ELEMENT:

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

BACKGROUND:

The San Mateo County Cities Insurance Group Joint Powers Authority (the “Cities Group”) was formed on October 5, 1978, for the purpose of allowing its Member Agencies to pool resources to fund and administer their respective workers’ compensation programs. The Cities Group now also administers other benefits, such as life insurance, long-term disability, and dental programs, on behalf of some of the Member Agencies. However, the Cities Group’s primary purpose remains the administration of workers’ compensation programs.

The founding members of the Cities Group were Half Moon Bay, Foster City, Brisbane, Atherton, and Hillsborough. San Carlos was added to the membership in 1989, and the Dublin was added in 2004. Although Brisbane withdrew from membership in the early 2000s, the Cities 80

Group has enjoyed stable membership during its 47-year history.

In November 2024, Foster City submitted a notice to the Group, indicating that it planned to withdraw from membership as of July 1, 2025. Pursuant to Section 4 of the Joint Powers Agreement (the “JPA”) as amended in 1997, any Member Agency that has completed at least three years of membership may unilaterally withdraw from the Cites Group on July 1 of any year, after providing notice of its intent to withdraw on or before January 1 of that same year.

Ultimately, Foster City’s membership was terminated August 1, 2025, pursuant to an agreed termination under Section VIII(B) of the Cities Group Bylaws, as amended in 2000. Under the Termination Agreement with Foster City approved by the Cities Group Board of Directors, Foster City assumed all liability for the past, current, and future claims it generated. The Group, therefore, is no longer responsible for any claims generated by Foster City.

After receiving the withdrawal notice from Foster City in November 2024, four of the five other Member Agencies also submitted withdrawal notices prior to the January 1, 2025, deadline.

Unlike Foster City, however, those Member Agencies indicated that they issued their notices in order to reserve their right to withdraw from the Cities Group but had not yet determined whether they intended to withdraw as of July 1, 2025. Ultimately, none of the other Member Agencies withdrew from the Cities Group, and the membership remains as follows: San Carlos, Half Moon Bay, Dublin, Atherton, and Hillsborough.

Although the Cities Group has continued to operate successfully after the departure of Foster City, the future viability of the Cities Group is in question. Because Foster City represented a disproportionately large share of the total claims handled by the Cities Group, the Group will become financially less stable. It will be less attractive on the reinsurance market. With this in mind, and at the Board’s direction, Cities Group staff worked with the Board President to conduct initial research into the possibility of merging the Cities Group with another Joint Powers Agency or other public agency administering workers’ compensation programs.

Unfortunately, each of the identified agencies indicated that Cities Group members wishing to move their workers’ compensation programs would have to do so individually, rather than moving all five Cities Group members as a unit.

The Cities Group Board President and staff presented this finding to the Board of Directors in February 2025 and recommended that each Member Agency conduct its own due diligence to determine where it might take its claims should the Cities Group dissolve. The Board held several discussions in the following months about the future of the Cities Group and the prospect of dissolving the Group.

On June 10, 2025, the Cities Group Board of Directors approved a resolution, which found that an orderly dissolution of the Cities Group was the preferable method of transitioning the Member Agencies out of the Cities Group, rather than having each Member Agency individually withdraw. That resolution directed Cities Group staff to create and present to the Board a dissolution plan under which the Cities Group would cease providing claims administration and all other benefit services on behalf of the Member Agencies on or before December 31, 2025. 81

In accordance with the Board’s direction, the Cities Group staff drafted a Dissolution Agreement that would govern the dissolution process and establish the on-going rights and obligations of the Member Agencies. The draft of that Dissolution Agreement was provided to the attorneys representing each of the Member Agencies and Cities Group staff worked with representatives from each Member Agency to address questions, concerns, and objections to the terms of that Dissolution Agreement. After completing that review process with representatives of each of the five Member Agencies, the Dissolution Agreement was presented to the Board at its meeting on September 9, 2025.

DISCUSSION:

At its September meeting, the Board of Directors approved the resolution (Attachment 2), which formally recommends to the councils of the Member Agencies that they each consent to the dissolution of the Cities Group and approve the Dissolution Agreement attached to that resolution as Exhibit A. Pursuant to Section 5 of the JPA, the Cities Group cannot dissolve unless all Member Agencies consent to the dissolution. Therefore, each of the five councils must adopt resolutions providing that consent.

Attachment 1 is a proposed resolution that would consent to the dissolution of the Cities Group and authorize the City Manager to execute the Dissolution Agreement recommended by the Cities Group Board of Directors. If approved by all five councils of the Member Agencies, the Dissolution Agreement will govern the dissolution process and set forth the rights and responsibilities of each Member Agency during that process. Most notably, the Dissolution Agreement would require the following:
• Each Member Agency must remain a member of the Cities Group for the duration of the dissolution process (Section 2);
• Cities Group will cease all claims operations and the provision of other benefits as of the “Transfer Date” on January 1, 2026 (Section 4);
• Each Member Agency must take responsibility for all of its past, current, and future claims as of the Transfer Date and assume all liability associated with those claims (Section 5);
• As of the Transfer Date, the costs of operating the Cities Group will be split equally among the five Member Agencies as “Shared Expenses”, rather than apportioned based on claim volume (Section 6);
• At the direction of the Board of Directors, the Cities Group will conduct audits and/or other studies to determine the correct ending fund balances for each of the Member Agencies as of the Transfer Date, and those with negative balances will be required to bring those balances to $0 on or before August 1, 2026 (Section 7); • Member Agencies with positive fund balances of the Transfer Date that are not depleted through the assessment of Shared Expenses shall be refunded the balance of those funds prior to the final dissolution of the Cities Group (Section 7); • The Board shall select one or more Member Agencies to retain the records of the Cities Group for the periods required by statute (Section 12); 82

• The Member Agencies agree to waive all potential claims related to the Cities Group that they may have against one another or against the Cities Group (Section 14); and • The dissolution will occur at the time that the Board finds by adoption of an “Ending Resolution” that all of the Cities Group’s outstanding obligations have been resolved.

Several Member Agencies requested that Cities Group staff provide an estimated schedule for the dissolution process. Attachment 3 is a preliminary estimated schedule, which anticipates the completion of the dissolution process by the end of calendar year 2026. However, pursuant to Section 5 of the JPA, the Cities Group must resolve all of its outstanding obligations before it can complete the dissolution process. The actual timeline for the dissolution, therefore, will be dictated by the pace at which the outstanding obligations of the Cities Group can be resolved.

It is important to quickly obtain the consent of the Member Agencies to the recommended dissolution so that each Member Agency and the Cities Group staff have clarity about, and can plan for, the date on which the Cities Group will no longer handle claims. It is also important to allow enough time for Cities Group staff to work with the Member Agencies to transfer claims to new claims administrators. For those reasons, each Member Agency must obtain council consent to the dissolution and approval of the Dissolution Agreement by October 31, 2025.

Staff will return this item to the Council on October 21, 2025, for approval.

The City is proceeding with the selection of a new third-party administrator (TPA) for workers' compensation claims. Our risk profile remains low given that we do not have police or fire departments, resulting in historically low claim numbers. We are confident we will identify quality coverage options and will present the best candidates to the Council for review.

For reference, the Cities Group JPA and Bylaws, and the amendments to each, are attached as Attachment 4.

ATTACHMENT:

1. Resolution Consenting to the Dissolution of the Cities Group and Approving a Dissolution Agreement to Govern the Dissolution Process Exhibit A – Dissolution Agreement

2. Resolution of the Cities Group Board of Directors Recommending that the Member Agencies Approve the Dissolution of the Joint Powers Authority Pursuant to the Terms of a Dissolution Agreement (adopted September 9, 2025)

3. Estimated Schedule for Dissolution

4. Cities Group JPA and Bylaws
83 RESOLUTION NO. C-2025-

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

DISSOLUTION OF SAN MATEO COUNTY CITIES INSURANCE GROUP JOINT POWERS AUTHORITY PURSUANT TO SECTION 5 OF THE SAN MATEO COUNTY CITIES INSURANCE GROUP JOINT

POWERS AGREEMENT AND APPROVING A DISSOLUTION AGREEMENT TO GOVERN THE

DISSOLUTION PROCESS
WHEREAS, the San Mateo County Cities Insurance Group Joint Powers Authority, known as the “Cities Group,” is a Joint Powers Authority formed on October 5, 1978, for the purpose of allowing its membership agencies to pool resources to fund and administer their respective workers’ compensation programs; and
WHEREAS, the governance of the Cities Group and the rights and obligations of the member agencies of the Cities Group are as described in the San Mateo County Cities Insurance Group Joint Powers Agreement (“JPA”), originally adopted on October 5, 1978, and as amended, and the Bylaws of Cities Group (“Bylaws”), as amended from time to time; and WHEREAS, prior to January 1, 2025, five of the six members of the Cities Group issued withdrawal notices pursuant to Section 4 of the JPA, as amended in 1997, indicating either intents or interests in withdrawing from the Cities Group; and
WHEREAS, on August 1, 2025, the Foster City withdrew from membership in the Cities Group pursuant to an Agreed Termination under Section VIII(B) of the Cities Group Bylaws; and WHEREAS, the five remaining members of the Cities Group are San Carlos, Half Moon Bay, Dublin, Atherton, and Hillsborough (collectively, the “Member Agencies”); and WHEREAS, in anticipation of Foster City’s withdrawal and in light of the withdrawal notices issued by the majority of the Cities Group’s membership, on June 10, 2025, the Board of Directors adopted a resolution stating its intent to recommend the dissolution of the Cities Group to the Member Agencies; and
WHEREAS, the June 10, 2025, resolution included the Board’s finding that an orderly dissolution of the Cities Group was the preferable method of transitioning the Member Agencies out of the Cities Group, rather than allowing each Member Agency to individually withdraw; and WHEREAS, Cities Group staff worked with representatives of each of the Member Agencies to draft the Dissolution Agreement attached hereto as Exhibit A (“Dissolution Agreement”); and
WHEREAS, the Cities Group Board of Directors reviewed the Dissolution Agreement at its meeting of September 9, 2025, and, by a 4-0-1 (one member absent) vote, adopted a resolution that formally recommended that the Council for each Member Agency consent to the dissolution of the Cities Group and approve the Dissolution Agreement; and 84 WHEREAS, Section 5 of the JPA requires that the Member Agencies remain members of the Cities Group and that the assets of the Group not be divided and returned to the Members Agencies until all outstanding obligations of the Cities Group have been resolved and/or each member agency executes a contract with the Cities Group to either pay off its outstanding liabilities or accept responsibility for its outstanding claims; and WHEREAS, Cities Group shall continue to administer and adjust all pending claims until the time that they are transferred and accepted by the Member Agencies or their identified claims administrators on or before January 1, 2026; and
WHEREAS, pursuant to Section 5 of the JPA, the Cities Group may not dissolve, and the Dissolution Agreement shall not be operable unless and until each of the Member Agencies consents to the dissolution.

NOW, THEREFORE, BE IT RESOLVED by the City Council that the City of Half Moon Bay consents to the dissolution of the Cities Group pursuant to Section 5 of the JPA and approves the Dissolution Agreement attached hereto as Exhibit A. The City Manager or their designee is authorized to execute the Dissolution Agreement on behalf of the City of Half Moon Bay. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of October 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 85 86
87 88
Action Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Board Recommends Dissolution Agreement (9/9/2025 Board Meeting) Member Agencies Approve Dissolution Plan (Council meetings through October 2025) Transition of claims files to new administrators (Deadline 12/31/2025) Cities Group stops handling claims and benefits
Board of Directors Retains Consultant(s) to conduct costs studies Cost studies Conducted
Equity balancing (must be balanced by August 1, 2026)
Adopt repayment schedule for Foster City funds (must be complete by July 1, 2026) Identify Member Agency to retain records and transfer records Close out contract with Chrisman & Associates
Adopt ending resolution and make closeout filings with State Payout Remaining Equity to Member Agencies (and payment to Foster City) Resolution of Cost Disputes (Unknown timeline)
89 A JOINT POWERS AGREEMENT
AMONG
Those public agencies signatory to this agreement for the purpose of establishing, operating and maintaining a Self-Insurance Program for Workers' Compensation.

WHEREAS, this agreement is entered into pursuant to the pro~isions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500, et seq.) of the California Government Code, relating to joint exercise of powers between the public agencies signatory hereto (and also those which may hereafter become signatory hereto) for the purpose of operating a program to be known and designated as THE SAN MATEO COUNTY CITIES INSURANCE GROUP hereinafter designated as the Group; and WHEREAS, it is to the mutual benefit of the parties herein subscribed and in the best public interest of said parties to join together to establish this Joint Powers Agreement to accomplish the purposes hereinafter set forth; and
WHEREAS, the development, organization and implementation of such a program is of such magnitude that it is desirable for aforesaid parties to join together in this Joint Powers Agreement in order to accomplish the purposes hereinafter set forth; and
WHEREAS, the signatories hereto have determined that there is a need by public agencies for a self-insurance system for Workers' Compensation; and WHEREAS, a feasibility study has been conducted which does recommend that the public agencies agree to self-insure under a Joint Powers Agreement that provides that the cost will be apportioned by losses and administrative expense as determined by the Governing Board; and 90 ......... ·.·.··.·····.•-···-•···'·'--'····'-'·"'·""·"'"•'-'"'•""'·",.,.,,., •. •,•·•••·••,•·•••·•••••• ·············································-····· . ."s.··,•·,,..1.,,,,, •• , •••• ,,.,, WHEREAS, Title 1, Division 7, Chapter 5, of the Government Code of the State of California authorizes the joint exercise by two or more public agencies of any power conman to them; and
WHEREAS, it is the desire of the signatories hereto to jointly provide for a Self-Insurance System for Workers' Compensation for their mutual advantage and concern;

NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL ADVANTAGES TO BE DERIVED

THEREFROM, AND IN CONSIDERATION OF THE EXECUTION OF THIS AGREEMENT BY OTHER PUBLIC AGENCIES AS DEFINED, EACH OF THE PARTIES HERETO DOES HEREBY AGREE AS FOLLOWS:

1. CREATION OF THE SAN MATEO COUNTY CITIES INSURANCE GROUP - Pursuant to Section 6500 of Title 1, Division 7, Chapter 5, of the Government Code, there is hereby created a public entity, separate and apart from the parties hereto, to be known as the San Mateo County Cities Insurance Group, hereinafter designated as the Group. The debts, liabilities, or obligations of the Group do not constitute debts, liabilities or obligations of any party to this agreement.

The Group shall have the powers conman to public agencies set forth in Section 1 of this agreement, and is hereby authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following: to make and enter into contracts; to incur debts, liabilities or obligations which shall not constitute debts, liabilities or obligations to any party to this agreement; to acquire, hold or dispose of property; to receive gifts, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and any governmental entity; and to sue and be sued in its own name. Said powers shall be exercised in the manner provided in the law, and except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon public agencies in the exercise of similar powers.
-2- 91

2. PURPOSE - The purpose of the Group shall be to provide to the members the capabilities of self-insurance, pooling, and joint purchases of insurance; establishment and maintenance of a fund to pay self-insured losses; establishment and maintenance of a fund to pay for desired insurance coverages; claims adjustment and administration, safety engineering, and other risk management services; and to provide a self-insurance plan and system for Workers 1 Compensation claims against members and as such, to perform, or contract for the performance of, the financial administration, policy formulation, claim service, legal representation, safety engineering, and other development as necessary for the payment and handling of all Workers' Compensation claims against members as required by State law, and be required to purchase and maintain a policy of excess insurance, said Fund being used to pay the deductible portion thereof. Said payment and handling for any member shall be for all Workers' Compensation claims filed under the laws of the State of California arising out of facts occurring during the period of membership in the Group. The Group shall not pay or handle for a member any Workers' Compensation claims which arise out of facts occurring before membership commences or after membership terminates.

3. MEMBERSHIP - Each party to this agreement must be eligible for membership as defined in the Bylaws, and becomes a member on the effective date of this agreement, and is entitled to the rights and privileges, and is subject to the obligations of membership, all as are provided in this agreement. Public agencies desiring membership after initial operation has begun shall apply under the provisions of the Bylaws.

4. WITHDRAWAL - Any member, having completed three (3) years as a party to this agreement, may withdraw as a party at the end of any fiscal year provided however that such withdrawing party has provided prior written notice of its intention to withdraw to the Board of Directors of the Group no later than March 1 prior to the fiscal year of withdrawal. The fiscal year of the parties -3-
92 to this agreement commences on the first day of July and terminates on the 30th day of June. Refunds of the unencumbered portion of the reserve fund contributed by a withdrawing member may be made on an incremental schedule as determined by the Board. Said schedule shall commence no sooner than five years following the date of withdrawal and be completed no later than ten years from the withdrawal date. The Group shall remain responsible only for those claims of withdrawing members which were incurred while a member of the Group.

5. DISSOLUTION OF THE GROUP - At any time the activities of the Group may be suspended or discontinued upon the consent of all the parties hereto.

However, the Group shall continue to be responsible for all existing assets and liabilities. No assets may be divided or returned until all outstanding obligations of the Group have been resolved or a paid-up contract has been enacted which will remove any further obligation from the Group. Said contract may provide for the members to accept responsibility for any outstanding claims. Disposition of assets will be made in proportion to the contributions of the then participating public agencies.

6. BYLAWS - The Group shall be governed pursuant to those certain Bylaws, a copy of which is attached hereto as 11 Exhibit A11 , and by this reference made a part of this agreement as if fully set forth herein. Wherever in this agreement the Bylaws are referred to, said Bylaws shall be those set forth in Exhibit A.

Each party to this agreement agrees to comply with and be bound by the provisions of said Bylaws, and further agrees that the Group shall be operated pursuant to this agreement and said Bylaws.

A two-thirds vote of those entitled to vote shall be sufficient to amend the Bylaws, provided that a quorum is present.

7. GOVERNING BOARD - The Group shall be governed by a board composed of one person appointed by each member agency. Each such agency shall also appoint one alternate. The alternate appointed by an agency shall have the authority to attend, participate in, and vote at any meeting of the Board when the regular member for whom he is an alternate is absent from said meeting. Each member or -4- 93
alternate of the Board shall serve at the pleasure of the agency by which he has been appointed. The successor in office of any member of the Board or alternate shall be appointed by the agency which appointed the predecessor of such member of the Board or alternate.

Each member agency shall have one vote. A vote of the majority of those entitled to vote shall be sufficient to constitute action, provided that a quorum is present except as otherwise provided herein.

8. AFFIRMATIVE ACTION POLICY STATEMENT - It is the permanent and voluntary policy of this Board to practice fair and impartial employment, recognizing applicants and employees on the basis of personal and professional merit, thereby reaffirming the dignity o_f individuals without regard to race, color, creed, national origin, ancestry, age, sex, or physical handicap in every aspect of personnel policies, practices, and treatment of personnel.

9. POWERS OF THE BOARD OF DIRECTORS - The Board shall be responsible for the ongoing operations of the Group and is hereby empowered to implement and enforce these Bylaws and such other rules, regulations and procedures as the Board shall adopt. The Board shall study and determine the best method of processing Workers' Compensation claims, and whether claim administration should be contracted for or provided for by staff. The Board shall be empowered to determine contribution rates annually as provided in the Bylaws and the method by which contributions will be paid to the Self-Insurance Fund. The Board shall also be empowered to provide for additional assessments during the year, if necessary, to allow for increased cost due to changes in the law or excessive claim costs. The Board shall insure that a complete and accurate system of accounting of the fund shall be maintained at all times consistent with established accounting procedures.

The Board shall determine the manner in which Workers' Compensation claims shall be processed. Such processing shall conform to all provisions of law now in effect or later enacted.
-5- 94

10. ADDITIONAL PARTIES - Additional parties to this agreement may be added as provided in the Bylaws.

UPON EXECUTION BY ALL OF THE OFFICIALS DESIGNATED IN THE FOLLOWING, THIS AGREEMENT SHALL BECOME EFFECTIVE ON OCTOBER 5, 1978 AND SHALL CONTINUE UNTIL TERM INA TED AS HEREIN PROVIDED. INSURANCE PROTECTION UNDER THIS AGREEMENT SHALL COMMENCE EFFECTIVE 12:01 A.M. JANUARY l, 1979.
-6-
~s•?~$
Mr. Melvin A?i1eo, Mayor City of Half Moon Bay
,,,.~- ,,,, I ~ ~·· b-~ .// .,. ..
:~·~r./ 1/?l .~c~<-"'--Y~
Mr. Robert Davidson, City Manager Town of Hillsborough
95 AGREEMENT AMENDING THE JOINT POWERS AGREEMENT CREATING A SELF-INSURANCE PROGRAM FOR WORKERS' COMPENSATION CALLED THE SAN MATEO COUNTY CITIES INSURANCE GROUP.

It is hereby agreed by the undersigned cities that the Joint Powers Agreement creating The San Mateo County Cities Insurance Group as executed on October 5, 1978, be amended as follows:

Page six, lines five and six of said Joint Powers Agreement which read: "INSURANCE PROTECTION UNDER THIS AGREEMENT SHALL COMMENCE EFFECTIVE 12:01 A.M. JANUARY 1, 197911 shall be amended to read as follows: "INSURANCE PROTECTION UNDER THIS AGREEMENT SHAbl. COMMENCE EFFECTIVE 12:01 A.M. DECEMBER 30, 197811 • Date November 13!1 1978 . . ert, Mayor City of Foster City City of Half Moon ~ay
u.??.~~,tS)~
Mr. Robert Davidson, City Manager
Date
Town of Hillsborough
96 AGREEMENT ADDING ADDITIONAL PARTY TO

SAN MATEO COUNTY CITIES JOINT POWERS AGREEMENT
THIS AGREEMENT is entered into pursuant to San Mateo County Cities Insurance Group By-Laws Section VI.

By execution of this Agreement the City of San Carlos shall, and hereby does, become a party to that certain Joint Powers Agreement and By-Laws dated October 5, 1978 and Amended on November 20, 1978, and agrees to, and shall on and after May 1, 1989, be bound by all of the terms and conditions thereof.

DATED: ~ - l '2.- g4
DATED: 'J - / 'j.. - ?1 CITY OF FOSTER CITY
By~~~
CITY OF HALFj~OQN BAY
By )/\,\.evls, .~
DATED: 1ol-s1/ar I , TOWN OF HILLSBOROUGH .

Br~@_//~
DATED: :ili1fs1 I I
97 AGREEMENT AMENDING THE JOINT POWERS AGREEMENT

CREATING THE SAN MATEO COUNTY CITIES INSURANCE GROUP
It is hereby agreed by the undersigned that the Joint Powers Agreement creating the San Mateo County cities Insurance Group as executed on October 5, 197 8, and as amended from time to time thereafter, shall be further amended and shall provide as follows:

1. The Joint Powers Authority shall henceforth be known as the "Cities Group". All references in the Joint Powers Agreement and amendments thereto to "San Mateo County Ci ties. Insurance Group" shall henceforth refer to and be construed to mean the "Cities Group".

2. Page one, lines eighteen and nineteen shall be amended and henceforth provide: "WHEREAS, the signatories hereto have determined that there is a need by public entities for selfinsurance procedures and the purchase of insurance for the benefit of the parties hereto pertaining to employee benefit and liability programs of every kind and nature; and"

3. Page two, lines four, five, and six shall be amended and henceforth provide: "WHEREAS, it is the desire of the signatories hereto to jointly provide for self-insurance and insurance for employee benefit and liability programs of every kind and nature for their mutual benefit and advantage;"

4. Page three, lines one through seventeen shall be amended and henceforth provide: "PURPOSE - The purpose of the cities Group shall be to provide to its members the capabilities of selfinsurance, pooling, and joint purchases of insurance including but not limited to employee benefit programs of every kind and nature, as for example Workers' Compensation, long term disability, life, health, dental, vision, accidental death and dismemberment and retirement benefits. The Cities Group shall also have authority to provide general liability, property, auto liability, fidelity, crime and other insurance programs on a joint purchase or pooled self insurance basis. The Cities Group shall arrange establishment and maintenance of a fund to pay self-insured losses; establishment and maintenance of a fund to pay for desired insurance coverages; claims adjustment and administration, safety engineering, and other risk management services; and to provide a self-insurance plan and system for Workers' compensation and other benefit program claims against members and as such, to perform, or contract for the performance of, the financial administration, policy formulation, claim service, legal representation, safety engineering, and other development as necessary for the payment and handling of all employee benefit program claims against members, and be required to purchase and maintain a policy of excess insurance, said Fund being used to pay the deductible portion thereof. Said payment and -1-
98 handling for any· member shall 1:le for all employee l::lenefit or liability programs estahlished by the Cities Group's Board of Directors arising out of facts occurring during the period of membership in the cities Group. The cities Group shall not pay or·. handle for a member' s··employee benefit or liability program claim which arises cut of facts occurring before membership commences or after membership terminates.

DATED: a~ /1_,, /'/tf2,, TOWN OF ATHERTON
By:~f:-~
DATED: July 30, 1992
_;2/~lt;3 DATED: _ __.:.I_~/_'., __ _ CITY" OF' FOSTER CITY DATED: Juna 15. 1993 CITY OE' HALF MOON BAY
By: ~~kJ~ ----------------
T0iili OF BILLSEOROOGE
.....--;:::- __ _
DATED: __ JU_L_Y_1_3~,-·~19~9~2- CI~Y OF SAN CA.'tUtCS
By:=:5
MAYOR
~~·
-2-
99 Acrreement Amending The Joint l?owe.rs Agreement
Creating the Cities G.rouo
:rt is hereby agreed by the undersigned that the Joint Powers Agreement creating the Cities Group as e:~ecuted on October 5, 1978, and as amended from time to tL~e thereafter, shall be further •amended and shall provide as follows:

1. Page 3, Section 4. WITHDR.~WAL - P...ny member, having completed thre·e (3) years as a party to this agreement, may withdraw as a party at the end of any fiscal year provided however that such withdrawing party has a total. fund bal.a.nce in the Group exceed±:ng .its .liabi.lities val.ued on the .last day of its membership .in the ·'"same ratio as the remaining members in total, bu.t in no case :Less than 1. 5 : 1. Such w.ithdrawing party must provide aa.s 1=1re~,~:.dee prior written notice of its intention to withdraw to the Board of Directors o! the Group no later than Harah :.. th~ Janua._'7 l prior to the fisca.l year of withdrawal. The fiscal year of the parties to this agreement commences on the first day of July and tei;-minates on the 30th day of June ..

Refunds of the unencumbered portion of the reserve fund contributed by a withdrawing member may be made on an incremental schedule as determined by the Board. Said schedule shall commence no sooner than five years following the date of withdrawal and be completed no later than ten years from the withdrawal date. The Group sh.all remain responsible only for those claims of withdrawing members which were incurred while a member of the Group.

DATED: ~,pj' «S: I tr1
DP..TED :-4---~~P:-1-+-rDATED: ::'" .. ~ Jr/ct 7 __ lS--~1/ _____ _ TOWN OF ATEZR1'0N
By )<,~,-'d QJ a: hJi~
CITY OF Et,,-/:wz ~'!
Bt: .di&klfi!~-(~
CITY~F ,..,.:a~rn::

Bv: .. (V ~
CITY OF EAU" MOON BAY
100

B Y L A W S
OF THE

SAN MATEO COUNTY CITIES INSURANCE GROUP

I OFFICERS OF THE BOARD OF DIRECTORS
The Board shall elect a president, vice-president and secretary/ treasurer at its first meeting; and thereafter at the first meeting held in each succeeding calendar year, the Board shall elect or re-elect its president, vice-president and secretary/treasurer.

In the event that the president, vice-president or secretary/ treasurer so elected ceases to be a member, the resulting vacancy shall be filled at the next regular meeting of the Board held after such vacancy occurs. In the absence or inability of the president to act, the vice-president shall act as president. The president, or in his absence the vice-president, shall preside at and conduct all meetings of the Board and of the Governing Board.

II MEETINGS OF THE BOARD
A. Regular Meetings
The Board shall provide for its regular, adjourned regular, and special meetings as needed provided, however, that it shall hold at least one regular meeting in each calendar quarter. The dates upon which and the hour and place at which any regular meeting shall be held shall be fixed by resolution of the Board and a copy of such resolution shall be filed with each member agency.

The place of the regular meetings shall be such public building or other place as may be designated by the Board.
101
B. Ralph M. Brown Act
The Board shall adopt rules for conducting its meetings and other business. All meetings of the Board including without limitation regular, adjourned regular, and special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (comnencing with Section 54950 of the California Government Code).

C. Minutes
The secretary of the Board shall cause minutes of all meetings to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to each member agency.

D. Quorum
A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.

III MEMBERSHIP
Any City or Special District located within the political jurisdiction of San Mateo County is eligible to apply for membership; said membership shall be subject to the limitations contained in the Bylaws, including Section VI.

IV ACCOUNTS AND RECORDS
The Group shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of law or -2-
102
any resolution of the Group. Books and records of the Group in the hands of the treasurer shall be open to inspection at all reasonable times by representatives of the parties. The Board, as soon as practical after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to each of the parties. The signature of two of the three officers shall be required to expend funds. The Group shall either make or contract with a Certified Public Accountant, or Public Accountant, to make an annual audit of the accounts and records of the Group. In each case, the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records if made by a Certified Public Accountant, or Public Accountant, a report thereof shall be filed as public record with each of the parties hereto, and also with the County Auditor of San Mateo. Such report shall be filed within twelve (12) months of the end of the fiscal year under examination.

Any costs of the audit including contracts with or employment of Certified Public Accountants, or Public Accountants, in making an audit pursuant to this section, shall be borne by the Group and shall be a charge against any unencumbered funds of the Group available for this purpose.

Additionally, the treasurer of the Group shall assume the duties described in California Govenment Code Section 6505.5 to wit:

1. Receive and receipt for all monies of the Group and
place them 1n the separate bank account as designated
-3- 103
by the Board to the credit of the Group.

2. Be responsible upon his bond for the safe-keeping and disbursement of all Group money so held by him.

3. Pay, when due, out of money of the Group so held by him all sums payable by the Group.

4. Verify and report in writing on the first day of July, October, January, and April of each year to the Board
and to the parties to this agreement the amount of money he holds for the Group, the amount of receipts since his last report, and the amount paid out since his last report.

V LOSS RECORDS
The Board shall maintain or cause to be maintained accurate loss records for all risks insured against, and all claims paid. Loss reports shall be forwarded to member agencies on, at least, a quarterly basis.

VI ADDITIONAL PARTIES
Any other public agency within the political jurisdiction of San Mateo County may become a party to this agreement upon execution of an agreement between such public agency and the Group, the terms of which agreement shall be identical to the terms of this agreement.

Any public agency desiring to join the Group shall submit a properly executed copy of the Joint Powers Agreement to the Board prior to March 1. A two-thirds vote of the Joint Powers Board shall be required for acceptance of such additional member. Such participation shall begin the following July l, unless the Board shall authorize another date.
-4-
104
Such additional public agencies shall forthwith pay to the Group its current contribution as determined by the Board. Thereafter, such additional party shall be considered a party to the agreement to the same extent as all of the original parties and for all purposes.

VII AMENDMENTS
Amendments to these Bylaws may be proposed by the designated representative of any member agency. The proposed amendment shall be referred to the Board for its consideration. A copy of the proposed amendment, with the Board's recommendations and reasons therefore shall be forwarded to each member agency. The Bylaws may then be amended by written agreement signed by all the parties to the Joint Powers Agreement. If twothirds of the parties to this agreement agree to an amendment, the other parties must also agree to said amendment, or they may be involuntarily terminated as parties to this agreement by using the procedure set forth in Section VIII of the Bylaws.

VI II INVOLUNTARY TERMINATION
Upon good cause being established, two-thirds of the Board shall vote for involuntary termination of a member agency.

Such involuntary termination shall be effective at the end of that fiscal year, unless the Board specifies otherwise.

IX ENFORCEMENT
The Board is hereby given authorfty to enforce· this agreement. If suit 1s necessary therefore, a defaulting member shall pay reasonable attorney fees to the Group as adjudicated by the Court.
-5-
105

X INVALIDITY
Should any portion, tenn, condition, or provision of this agreement be determined by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected thereby.

XI FINANCE
A. Each member agency shall pay to the Group each fiscal year the annual contribution calculated pursuant to Paragraphs Band C.

For the first six months of operation beginning January 1, 1979, the sums appearing in the schedule below will be paid on January 1, 1979. In subsequent years, partial payments shall be made in advance based on an estimated annual cost calculated by the Board. Said partial payments shall be made in the first year or partial fiscal year as follows: Fifty percent (50%) in July or the first month of operation; Twenty-five percent {25%) in December or the middle month of operation; Twenty-five percent (25%) in March or three-quarters through the partial fiscal year, as determined by the Board. Partial payments for subsequent years shall be made in July, December and March at a percentage to be determined by the Board.
-6-
106
--------~-, .. ,,,., ...... •••••••••--••••••••••••••••••••"••"•••••••••••••••~•'••••••••••••••••••••••••.'••••>•••••••••••••'"•'"~v•.•.-,•.•••••••• B. The member contribution schedule for the period of January 1, 1979 to June 30, 1979 shall be approximately*:

City Amount
Atherton $ 20,250
Brisbane 22,500
Foster City 60,000
Half Moon Bay 11,250
Hillsborough 30,000
The Joint Powers Authority shall have no responsibility to pay the State Fund premiums or other liabilities incurred by the member agencies before the effective date of the insurance under this agreement.

C. The yearly premium paid to the Joint Powers Authority by the member agency for the two years following the initial one-half year shall be based upon a percentage of the manual premium according to the applicable WCIRB rate as determined by the Board of the Joint Powers Authority. Thereafter each member agency's premium may be modified by decision of the Board according to the loss experience of each member defined by the WCIRB rating plan. This loss experience mechanism shall operate to ensure that each mem~er returns over a period of time to the Joint Powers Authority the funds paid out on its behalf as paid losses.

D. The Group shall operate on a fiscal year from July 1 to June 30. *To be adjusted according to actual payroll figures.
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107
E. Handling Funds
The Group shall have the power, authority and duty to handle all aspects of Workers' Compensation claims against members arising out of facts occurring during membership in the Group.

F. Contributions
Without in any way limiting the powers otherwise provided for in this agreement or by statute, the Group shall have the power and authority to receive, accept, and utilize property, real or personal, from any member or its agents or representatives; to receive, hold, dispose of, to construct, operate and maintain buildings and other improvements; and to receive, accept, expend and disburse funds by contract or otherwise, for purposes consistent with the provisions of the Group, which funds may be provided by any member or their agents or representatives.

G. Additional Income
The Group shall accept and deposit monies from any of the following sources earned after the date of this agreement:

1. Interest Income
2, Refund of the Group's Excess Workers' Compensation
Insurance Premiums

3. Workers' Compensation Subrogation Recoveries

4. Payments by the State of California under State
Mandated Reimbursement for Workers• Compensation
Legislation

5. Grants from any Agency or Private Company (provided
that no conflict of interest is created)
-8-
108
-
---.... -....... -.. -................ · .... •.-.... , .... , .......... .

H. Debts
Should the projected expenses for a given year exceed the given assets of the pool for that year, each member shall be assessed by the Board an additional amount based upon the percentage of yearly premiums paid by each member relative to the total yearly premiums paid by all members.

I. Disposition of Property and Funds
In the event of the dissolution, complete rescission or other final termination of this agreement by all agencies then a party hereto, any property interest remaining in the Group following a discharge of all obligations, shall be returned to the current members.

J. Operating Fund
This fund shall be established and maintained out of the member contributions, and shall be for the purpose of paying for the following:

1. Insurance Premiums

2. Claims Management Expenses

3. Salaries of Administrators, if any

4. Safety Engineering

5. Data Processing Costs

6. Investigative Costs

7. Legal Costs

8. Miscellaneous
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109
K. Claim Fund
This fund shall be established and maintained out of the member contributions, and shall be solely for the purpose of paying Workers' Compensation claims, except that the Board may authorize a transfer from this fund to the operating fund to cover unexpected expenses.

The Claim Fund shall be the repository of the •
11 reserves 11 to be
used for future Workers' Compensation payments, averaging up to eleven (ll) years.

L. The Group shall have authority to seek and recover subrogation monies wherever possible. Such monies shall be deposited in the Claim Fund.

XII LIABILITIY
Except as otherwise provided by individual contract, pursuant to the provisions of Section 895, et seq., of 'the Government Code of the State of California, each member of the Group shall be liable for its pro rata share of all debts and liabilities of the Group, and its pro rata share of all debts and liabilities for Workers' Compensation claims against members arising out of facts occurring while a member of the Group. To achieve such purpose, each member indemnifies and holds harmless the other members for any loss, cost or expense that may be imposed upon such member in excess of such pro rata liability. (The rules therefor, as set forth in Civil Code Section 2788 are hereby made a part of these Bylaws.)
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110

XIII EFFECTIVE DATE
These Bylaws shall go into effect immediately upon the effective date of the Joint Powers Agreement.

XIV INVESTING OF RESERVES (Claim Fund)
The Board shall invest or cause to be invested such reserves as are not necessary for ilffllediate operation of the Claim Fund in such securities as are prudent and legal for public agencies.

The level of cash to be retained in the Operating and Claim Funds shall be determined by the Governing Board.

XV GLOSSARY
Unless the context otherwise requires, the terms used herein shall have the following meanings:

BOARD -- shall mean the governing board of the Group.

BROKER -- shall mean the broker engaged by the Board for the purpose of acquiring an insurance policy.

W.C.I.R.B. -- shall mean Workers' Compensation Insurance Rating Bureau.

CLAIM FUND -- shall mean the fund established for the purpose of paying the cost of the deductible portion of Workers' Compensation claims.

CLAIMS ADJUSTER -- shall mean the claims adjuster engaged by the Board for the purpose of determining losses and payments with respect to the Claim Fund.

CONTRIBUTION -- shall mean money paid by a member agency to the Group in return for the handling of Workers' Compensation claims.

EXPERIENCE MODIFICATION FACTOR·- shall mean a factor used in determining individual member contributions, derived from the claim activity of the member over the previous three years.
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111
GROUP -- shall mean the San Mateo County Cities Insurance Group created by this agreement.

LOSS REPORTS -- shall mean a Report showing a member's Workers' Compensation claims in detail including current status.

MEMBER -- shall mean an individual member agency which belongs to the San Mateo County Cities Insurance Group.

OPERATING FUND -- shall mean the fund established by the Group for the purpose of paying insurance premiums and administrative and other costs.

RESERVES -- shall mean that part of the member's contribution held by the Group to make future Workers' Compensation payments.

SELF-INSURANCE (Permissively Uninsured) -- shall mean setting aside funds to pay for losses not covered by insurance.
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112
Amendment to the Cities Group By-Laws as enacted by unanimous Vote of the Board of Directors at its duly noticed meeting On June 28, 2000
VIII A. Involuntary Termination
Upon the unanimous vote of all of the Board of Directors except the Director representing the member agency being terminated, a member agency may be involuntarily terminated. Upon the effective date of termination, the terminated member shall be subject to the following:

1. The terminated member shall assume full financial and administrative responsibilities for all pending and future claims against the Group or its programs which are in any way associated with the terminated member's past membership in the Group.

2. The terminated member's equity in the Group shall be reduced by all claim payments and other expenses as of the day termination becomes effective. If following the terminated member's assumption of all claim liabilities valued as of the effective day of termination the member's remaining equity is less than zero, the terminated member shall pay to the Group an amount sufficient to bring its total equity to zero. If the member's final equity is greater than zero, it shall be returned to the member in accordance with section 4. of the Joint Powers Agreement.

VIII B. Agreed Termination
Upon unanimous vote of the full Board of Directors, a member agency may be terminated by agreement. Such termination shall be conditioned upon the terminated member's duly authorized agreement to comply with the provisions of Sections VIII A. 1. and 2. hereof. In addition, the terminated member shall agree to indemnify, release from liability and hold harmless the Cities Group, its Directors, member agencies, officers, agents and their employees from liability for acts prior to the effective date of termination.

In the case of either involuntary or agreed termination, the effective date will be July 1 of each year unless the Board specifies otherwise.
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Amendment to the Ci ties Group Bylaws enacted by V:ne,,J'J1n?&!:!§Ote of the Board of Directors at its duly noticed meeting on /l/w. <? / 2004.

1. Section III is amended, and shall henceforth provide:

Any City, Special District, or other public agency
located within the State of California is eligible
to apply for membership; said membership shall be
subject to the limitations contained in the Bylaws,
including Section VI.

2. The first paragraph of Section VI is amended, and shall henceforth provide:

Town
by:

Any other City, Special District, or public agency
within the State of California may become a party
to this agreement upon execution of an agreement
between such public agency and the Group, the terms
of which agreement shall be identical to the terms
of this agreement.
of Atherton
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0 Date:

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Date:

Date:

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City of San Carlos
by, f2L Gwr, Date:
114

AGREEMENT ADDING ADDITIONAL PARTY TO

CITIES GROUP JOINT POWERS AGREEMENT
THIS AGREEMENT is entered into pursuant to the Cities Groq.p By-Laws Section VI.

By execution of this Agreement the City of Dublin shall, and hereby does, become a Party to that certain Joint Powers Agreement and By-Laws dated October 5, 1978 and Amended November 20, 1978, May 1, 1989, July 1, 1993 and June 30, 1997, and agrees to, and shall on and after January 1, 2005, be bound by all of the terms and conditions thereof.

Town of Atherton
By tjtrulildtf
City of Half Moon Bay
By clllw rYjxnv
Town of Hillsborough
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City of San Carlos
By /{J,ri..., 8w ,k 1
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City of Dublin
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l/ 1 y.-ocl Date _____ ..... f..-----
Date __ /_1_/2_t+-/_z_£_.v----'-·cj_._·
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Date _1_,_1/ __ 1(_o ____ y_· ----
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115

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: October 7, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Karen Decker, Economic and Community Vitality Manager Catherine Enberg, City Attorney
TITLE: COMMERCIAL VITALITY ORDINANCE – STUDY SESSION
______________________________________________________________________________ RECOMMENDATION:

Receive a presentation on the Draft Commercial Vitality Ordinance establishing standards for blighted and empty commercial storefronts, provide feedback, and direct staff on any revisions or next steps.

FISCAL IMPACT:

There is no fiscal impact associated with this study session.

STRATEGIC ELEMENTS:

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

BACKGROUND:

In March 2025, the City Council held its annual Priorities Setting Workshop following a series of community listening sessions. During these discussions, concerns were raised by Council members and community members regarding blighted and vacant commercial properties.

Empty or neglected storefronts contribute to urban decay, diminish property values, deter investment, discourage responsible property ownership, and pose risks to public health and safety.

To address these issues, Staff is introducing a draft Commercial Vitality Ordinance (Attachment 1), designed to support local businesses and ensure Half Moon Bay’s commercial areas remain welcoming, clean, and vibrant. The ordinance seeks to preserve and enhance the aesthetic, economic, and social vitality of the City’s commercial districts by preventing the negative effects of commercial blight and vacancy.

In preparation for this study session, Staff reviewed existing ordinances from several jurisdictions including Saratoga, San Jose, San Francisco, Santa Cruz, Berkeley, and Patterson, 116

and engaged local stakeholders in the development of the draft. Businesses participating in the Downtown Association’s monthly meetings expressed strong support for the initiative. An early draft was also shared with leadership from the Downtown Association and the Chamber of Commerce. Extensive feedback was provided by a local commercial real estate broker representing the point of view of property owners.

The proposed ordinance builds on the City’s existing codes and the State’s Health and Safety Code. It requires property owners, or their designated representatives, to notify the City when commercial property becomes vacant (Attachment 2) and to adhere to maintenance standards for empty or neglected storefronts. The City’s Compliance Officer and other staff will work collaboratively with property owners to achieve compliance. When necessary, the City will have the authority to impose fines and pursue nuisance abatement.

DISCUSSION:

Staff’s review of ordinances from other jurisdictions demonstrated that effective programs balance property owner accountability with opportunities for collaboration and education. The proposed ordinance draws from models adopted in other jurisdictions but has been tailored to Half Moon Bay’s local needs and resources. For instance, many jurisdictions require property owners to register vacant storefronts with the City, but these agencies typically deal with an inventory volume that necessitates multiple staff positions dedicated to administration and enforcement. Staff are recommending that property owners be required to inform the City when a storefront is vacated by using a form that prioritizes ease of use for the property owner and standardization provided by the City.

The proposed ordinance includes standard content that includes the purpose, definitions, maintenance requirements for empty storefronts; noticing requirements; and enforcement.

Additional sections such as neglected storefronts and the exteriors of all commercial properties were added as a result of community and Council feedback with respect to trash and other refuse that contribute to blight.

The bulk of the draft ordinance provides a list of what a property owner must do to avoid an empty property falling into neglected status, which would make it subject to enforcement. The ordinance requires owners to notify the City of empty storefronts which helps the City monitor compliance. A section titled, “All Commercial Properties – Exteriors” (Section 7.65.070) applies to all commercial properties (whether vacant or not) and creates a neatness / appearance requirement. It also specifically regulates trash and donation bins, which are concerns that have been raised by Council members and the community. The section focused on enforcement 117

explains the Compliance Officer’s authority and relies on the City’s general code enforcement provisions. Consequences could include daily fines or nuisance abatement proceedings.

While much of the ordinance reflects existing health, safety, and nuisance standards, several provisions represent new policy decisions that can benefit from Council guidance:
• Definitions: The ordinance defines an “empty storefront” as one not consistently occupied or open for business, and a “neglected storefront” as one that is dilapidated or maintained in a way that substantially detracts from surrounding properties. Council may wish to consider whether these definitions should include more specific thresholds (e.g., length of vacancy or minimum business hours) to reduce subjectivity. • Maintenance Standards: Property owners of empty storefronts would be required to maintain contact information on-site, perform monthly inspections, and prevent conditions that create the appearance of neglect. After 30 days of vacancy, storefronts must also feature an active display such as art, cultural exhibits, or temporary business simulation. Some questions for Council to consider are: Should the City pre-approve displays? Will the City provide assistance or resources for displays (e.g., templates, examples)?
• Notification and Reporting: Owners must notify the City within 30 days of vacancy and provide updated information every 90 days. Council direction is needed on whether these timelines strike the right balance between accountability and flexibility. • Applicability to All Commercial Properties: In addition to regulating empty and neglected storefronts, the ordinance requires all commercial properties to maintain landscaping, exteriors, and receptacle areas in a neat and orderly manner. Council may wish to consider whether the ordinance should apply broadly to all commercial properties or focus more narrowly on vacant or neglected sites. • Enforcement: The Compliance Officer is authorized to conduct inspections, ensure compliance, and apply penalties under the City’s existing code. Council may wish to discuss the intended enforcement approach — whether it should be primarily complaint-driven and education-focused or include more proactive inspections which may require additional resources.

Staff’s intent is to strike a balance between supporting property owners through collaboration and education, while ensuring the City has the tools to address persistent blight issues. Council feedback on the above policy considerations will help refine the ordinance before returning for a first reading.
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NEXT STEPS:

Based on Council feedback, staff will revise the draft ordinance as directed and return with the ordinance for formal introduction and first reading at an upcoming Council meeting.

ATTACHMENTS:

1. Draft Commercial Vitality Ordinance

2. Vacant Storefront Form
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Half Moon Bay Vitality Ordinance – Draft (10/01/25)

7.65.010 Title.

This chapter shall be known as the “Half Moon Bay Vitality Ordinance.” (2025-01)

7.65.020 Purpose.

The purpose of this ordinance is to preserve and enhance the aesthetic, economic, and social vitality of the City of Half Moon Bay by identifying and remedying blighted commercial properties. The City finds that commercial blight and vacancy contribute to urban decay, reduces property values, deters investment, and threatens public health and safety.

7.65.030 Definitions.

The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section.

A. “City” means the City of Half Moon Bay.

B. “Compliance Officer” means the city manager or any person authorized or directed by the city manager to enforce or otherwise ensure compliance with any provision of this Chapter.

C. “Empty Storefront” means a room or set of rooms facing a street on the ground floor of a building with a ground-floor commercial use that a reasonable observer would conclude meets one of the following conditions:

1. The storefront does not appear to be consistently lawfully occupied for a commercial purpose; or

2. The storefront fails to consistently maintain regular operating hours during which it is open for business.

D. “Responsible Party” means the owner, agent, representative, or individual who has the duty to maintain the premises in compliance with this ordinance; E. “Neglected Storefront” means a room, set of rooms, or adjoining portions of a building or building exterior facing a street on the ground floor of a building with a ground-floor commercial use that meets one of the following conditions:

1. The storefront meets a condition listed Health and Safety Code section 17920.3;

2. The storefront violates the provisions of Chapter 9.34 of this code; or

3. The storefront is otherwise dilapidated, deteriorated, unsanitary, or maintained in inadequate condition so as to substantially detract from the aesthetic, social, and economic value of neighboring properties or otherwise contribute to blight. 120

7.65.040 Maintenance Requirements for Empty Storefronts Subject to this Chapter.

In addition to any other applicable requirements contained in the Half Moon Bay Municipal Code or state or federal law, all empty storefronts subject to this Chapter must be maintained in accordance with the following requirements:

A. All empty storefronts shall be posted with the name and contact phone number of the Responsible Party. The posting must comply with the standards established by the Compliance Officer.

B. All empty storefront properties shall be actively maintained to prevent the property from meeting the definition of a neglected storefront or otherwise contributing to blight.

This includes, but is not limited to:

1. Maintaining the structure in a structurally sound condition that does not constitute a hazard to public health or safety and that complies with this code.

2. Maintaining the property in a manner that does not create an unreasonable risk of fire, including removal of weeds and maintaining or removing heating systems.

3. Maintaining the property in such condition as not to create the appearance of an unsecured, unoccupied structure or other hazard to public safety, which shall include maintaining tidy landscaping and keeping the property free from outdoor storage and trash.

4. Securing the storefront from entry or occupation by unauthorized persons. All windows, doors (walk-through, sliding, and garage), and gates that may allow access to the interior of the property must properly close and lock, and remain locked when the structure is not in use.

5. Preventing illegal activity on the premises.

6. Maintaining sufficient utility services to ensure active operation of any alarm or security system, exterior lighting, and proper irrigation of all landscaping on the property.

7. For storefronts that are empty for more than 30 days, installing a display on or in any street-facing windows that makes the storefront appear active and attractive, which may include:
i. Temporary displays simulating a business;
ii. Artwork or cultural/historical exhibits;
iii. Window paintings;
iv. Other City-approved designs.

C. The owner or designated Responsible Party must perform monthly inspections to ensure compliance with this Chapter and City code.

7.65.050 Notice of Empty Storefront Status.
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A. The owner of an empty storefront shall, within 30 days after it has become empty, notify the Compliance Officer of the vacancy.

B. The notice must include:

1. A contact phone number, email address, and physical address for the owner and, if applicable, the Responsible Party designated for upkeep and maintenance of the empty storefront;

2. A description of the most recent legal use of the empty storefront, the square footage of the empty storefront, and any future plans for the property.

C. The Responsible Party must provide the Compliance Officer with updates to the notice at least every 90 days after providing the original notice.

D. The Responsible Party must meet with City staff upon request, to discuss the status of ending the storefront’s vacancy and to rectify any storefront maintenance issues. City staff may require a property maintenance plan describing the owner’s plans for compliance with the maintenance requirements of this Chapter.

7.65.060 Neglected Storefronts.

Notwithstanding the terms of any permits, licenses, approvals, or agreements, it is a violation of this code and a public nuisance to maintain a neglected storefront.

7.65.070 All Commercial Properties - Exteriors.

All commercial properties shall be maintained with neat and orderly landscaping, plants, building exteriors, and interiors visible from the exterior, including paint and finishes, and all other elements of the property that may contribute to blight without regular maintenance. This shall include emptying exterior dumpsters and other material receptacles on a regular basis and keeping dumpsters and other material receptacles locked between the hours of 11 p.m. and 5 a.m. every day, except when in use by the owner of the dumpster and other material receptacles or their employees.

7.65.080 Enforcement.

The Compliance Officer is authorized to do the following:

A. Inspect commercial properties to identify empty or neglected storefronts, determine ongoing compliance with this Chapter, and initiate proceedings against owners found to be in violation of this Chapter or any other applicable code.

B. Order the owners of empty storefronts or neglected storefronts to comply with this Chapter and any other applicable provisions of this code.

C. Employ the enforcement mechanisms available in Title 4 of this code to remedy violations of this Chapter.
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D. Establish and enforce any administrative policies necessary for the implementation and enforcement of this Chapter.
1968751.4
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Empty Storefront Registration Form
Property Information
• Property Address: ________________________________________________ • Assessor’s Parcel Number (APN): _________________________________ • Square Footage of Empty Storefront: ______________________________ Owner Information
• Owner Name(s): _________________________________________________ • Mailing Address: _________________________________________________ • Phone Number: _________________________________________________ • Email Address: __________________________________________________ Responsible Party (if different from owner)
• Name/Company: _______________________________________________ • Mailing Address: ________________________________________________ • Phone Number: _________________________________________________ • Email Address: __________________________________________________ Vacancy Details
• Date property became vacant: ___________________________________ • Most recent legal use of storefront: ______________________________ • Future plans for property (if any): ________________________________ Compliance Acknowledgment
By signing below, I acknowledge and agree to:
• Maintain the property in accordance with HMB Municipal Code, Chapter 7.65 (Vitality Ordinance).
• Perform monthly inspections and address any maintenance issues. • Prevent blight, unauthorized entry, and illegal activity. • Provide updated information to the City every 90 days until the storefront is occupied. • Meet with City staff upon request to discuss vacancy status and compliance.

Owner/Responsible Party Signature: _______________________ Date: ____________ 124