BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: November 4, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Lisa Rossi, Administrative Services Director
Kenneth Stiles, Finance Manager
TITLE: FINANCIAL REPORT FOR THE QUARTER ENDED ON SEPTEMBER 30, 2025 ______________________________________________________________________________ RECOMMENDATION:
Accept the Financial Report for the quarter ended September 30, 2025, and authorize the Administrative Services Director to make budgetary entries to:
1. Include a $30,000 budget adjustment for the Community Development Department’s Planning Collaborative; and
2. Incorporate previously approved carryforward funds related to capital improvement projects and other multi-year initiatives.
FISCAL IMPACT:
General Fund expenditures increased by $30 thousand totaling $25.3 million for the fiscal year.
Additionally, Special Revenue and Capital Project funds will be budgeted at $23.4 million in revenues and $29.9 million in expenditures. These adjustments are for items previously approved by the Council as they relate to the Capital Improvement Plan (CIP) and special multiyear projects to account for carryforward funds from prior years.
STRATEGIC ELEMENT:
This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan.
BACKGROUND:
One of the City Council's Strategic Elements is planning for and implementing long-term financial stability. A key component of this goal is preparing a quarterly financial report that provides readers with a summary of the City’s current financial conditions as they relate to the annual operating budget to ensure accountability and transparency in managing public funds. 726
DISCUSSION:
Financial Report
As of September 30, 2025, General Fund revenues totaled $2.5 million or 11% of the approved Fiscal Year 2025-26 budget. General Fund expenditures total $2.3 million or 9% of budget.
Although expenditures are tracking as anticipated, it is too early to assess trends in major revenue sources.
During the first quarter, Staff identified a $30,000 budget correction for the Community Development Department’s Planning Collaborative. This amount reflects a late budget revision that was intended for inclusion during the FY 2025-26 budget adoption but was inadvertently omitted. This appropriation is to help update the Safety Element.
With $3.2 million in unassigned funds and $8.8 million in reserves, Staff is not significantly concerned about fiscal stability for the current year. However, careful planning will be essential during the mid-year review and the FY 2026-27 budget process. As expenditures continue to exceed revenues, the City must continue its focus on making structural adjustments to either increase revenues and/or reduce expenditures.
Budget Revision for Carryforwards
The City’s Capital Improvement Plan (CIP) serves as a strategic framework for planning and implementing multi-year infrastructure projects and programs. In addition to capital projects, the City also manages a number of special projects and initiatives that may extend across multiple fiscal years.
As part of the annual budget process, Staff estimates year-end balances for these multi-year budgets to account for unspent funds that will carry forward into the new fiscal year. This carryforward process ensures continuity of funding for ongoing capital projects, special projects, and other long-term initiatives. With the close of Fiscal Year 2024-25, the actual carryforward amounts are now available, allowing Staff to reconcile prior estimates with final figures.
The table below shows the final adjustments to the carryforward expenditures by category.
Category
Total Project
Budget as of
June 30
Expenditures
as of June 30
Actual
Carryforward
New Funding
in FY 25/26
FY 2025/26
Budget
A B C = A - B D C + D
CIP Projects
Storm Water 2,290,000 (828,336) 1,461,664 140,000 1,601,664 Economic Development 331,619 (309,644) 21,975 - 21,975
Operational - - - - -
Parks 11,815,696 (9,328,502) 2,487,195 - 2,487,195
Facilities 1,856,137 (272,949) 1,583,188 - 1,583,188
Sewer 275,000 - 275,000 - 275,000
Streets and Roads 15,150,931 (3,760,531) 11,390,400 1,895,000 13,285,400 Trails 2,445,000 (638,179) 1,806,821 1,985,000 3,791,821 Special Projects & Initiatives 6,230,000 (4,582,764) 1,647,236 200,000 1,847,236 40,394,383 (19,720,904) 20,673,479 4,220,000 24,893,479 727
Overall, the City’s total budget for CIP and other special projects for FY 2025-26 is $24.8 million, of which $14.9 million is to be funded by outside grants.
Financial Outlook
Since Fiscal Year 2023-24, the City has been addressing an ongoing structural deficit driven by rising costs for existing services along with declines in major revenue sources. In response, the City has implemented a range of corrective measures, including reducing operating expenditures, evaluating capital projects and programs, completing a comprehensive cost allocation and fee study, and securing voter approval of a 0.50% sales tax increase (Measure R), effective April 1, 2025.
As noted in the Fiscal Year 2024-25 Fourth Quarter Update, transient occupancy tax (TOT) revenues closed the year stronger than anticipated. Despite this improvement, a deficit remains very likely in the upcoming fiscal year. The extent to which recent corrective actions will influence the City’s fiscal outlook remains uncertain, though they represent meaningful steps toward longterm stability. The City’s finances remain in a transitional period, and additional insight into the fiscal outlook is anticipated at mid-year.
ATTACHMENT:
1. Financial Report for the quarter ended on September 30, 2025
2. Capital Improvement Plan Carryforward
3. Resolution
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CITY OF HALF MOON BAY
Quarterly Financial Report
September 30, 2025
Prepared By:
Administrative Services Department
729
0% 20% 40% 60% 80% 100%
General Fund
Special Revenue Funds
Capital Project Funds
Sewer Funds
Revenue & Expenditure Summary
Revenues to Budget Expenditures to Budget
Funds Actual % of Budget Actual % of Budget
General Fund 2,551,927 11% 2,330,056 11%
Special Revenue Funds 559,735 3% 449,420 3%
Capital Project Funds 2,000 0% 128,976 2%
Sewer Funds 39,297 0% 1,700,196 20%
Internal Service Funds 8,347 1% 685,246 35%
Pension Stabilization Fund - 0% 1,491,217 100%
TOTAL FOR ALL FUNDS 3,161,306 5% 6,785,111 11.2%
Revenues Expenditures
730
0% 20% 40% 60% 80% 100%
Transient Occupancy Tax
Property Taxes
Sales & Use Tax
Franchise Tax
Business License Tax
Charges for Services
Interest and Investment
Other Revenues
General Fund Revenue Summary
Revenues to Budget
Department Budget Actual % of
Budget
Prior Year
Actual
Prior Year
% of Actuals
Transient Occupancy Tax 8,699,852 918,730 11% 859,889 9% Property Taxes 3,711,552 714,237 19% 594 0%
Sales & Use Tax 4,972,232 381,988 8% 258,986 7%
Franchise Tax 1,008,159 - 0% - 0%
Business License Tax 362,543 13,841 4% 157,432 39%
Charges for Services 2,213,282 462,581 21% 629,385 26%
Interest and Investment 518,797 - 0% 137 0%
Other Revenues 1,769,617 60,550 3% 189,971 14%
Transfers in 602,454 - 0% - 0%
TOTAL 23,858,488 2,551,927 11% 2,096,393 9%
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0% 20% 40% 60% 80% 100%
Administrative Services
City Attorney
City Clerk / Communications
City Council
City Managers Office
Community Development
Public Works
General Fund Expenditure Summary
Expenditures to Budget
Department Budget Actual % of Budget Prior Year
Actual
Prior Year
% of Actuals
Administrative Services 1,572,528 255,614 16% 310,046 25% City Attorney 1,164,000 146,846 13% 160,565 12%
City Clerk / Communications 1,050,481 120,454 11% 203,032 23% City Council 228,642 29,028 13% 23,361 11%
City Managers Office 2,985,055 586,995 20% 867,498 31%
Community Development 2,270,647 361,613 16% 427,491 21% Public Safety 7,631,997 2,029 0% 8,712 0%
Public Works 4,365,229 819,030 19% 718,680 22%
Non Departmental / Debt Service 918,596 8,448 1% 10,322 2% Transfers 3,142,433 - 0% - 0%
TOTAL 25,329,607 2,330,056 9% 2,729,707 11%
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GENERAL FUND ANALYSIS:
The General Fund is the primary operating fund of the City and is used to account for most operating activities. Table 1 below provides year-to-date through the first quarter comparable data for the current fiscal year and the prior year.
In the first quarter, the City generated $2.5 million in revenues for the fiscal year, marking an increase compared to the same period last year. This increase is mainly attributed to the late receipt of property taxes that were due from a prior year.
Expenditures through the first quarter total $2.3 million. Expenditures are tracking at 9% of budget.
Revenues
Table 2 below shows a year-to-date summary of actual revenues through the first quarter for the current fiscal year and the prior year.
Revised
Budget
Actuals as of
09/30/2025
% of
Budget
Final
Actuals
Actuals as
of
09/30/2024
% of
Actuals
Revenues
Transient Occupancy Tax 8,699,852 918,730 11% 9,616,592 859,889 9% Property Taxes 3,711,552 714,237 19% 3,757,360 594 0%
Sales & Use Tax 4,972,232 381,988 8% 3,634,164 258,986 7% Franchise Tax 1,008,159 - 0% 1,032,642 - 0%
Business License Tax 362,543 13,841 4% 408,035 157,432 39% Charges for Services 2,213,282 462,581 21% 2,421,671 629,385 26% Interest and Investment 518,797 - 0% 706,358 137 0%
Other Revenues 1,769,617 60,550 3% 1,340,419 189,971 14% Transfers in 602,454 - 0% 587,760 - 0%
Total Revenues 23,858,488 2,551,927 11% 23,505,000 2,096,393 9% Expenditures
Administrative Services 1,572,528 255,614 16% 1,243,492 310,046 25% City Attorney 1,164,000 146,846 13% 1,317,015 160,565 12% City Clerk / Communications 1,050,481 120,454 11% 869,870 203,032 23% City Council 228,642 29,028 13% 214,195 23,361 11%
City Managers Office 2,985,055 586,995 20% 2,822,865 867,498 31% Community Development 2,270,647 361,613 16% 2,059,998 427,491 21% Public Safety 7,631,997 2,029 0% 7,127,366 8,712 0%
Public Works 4,365,229 819,030 19% 3,272,661 718,680 22% Non Departmental / Debt Service 918,596 8,448 1% 590,723 10,322 2% Operating Transfers 2,157,433 - 0% 2,259,619 - 0%
Capital Transfers 985,000 - 0% 2,112,704 - 0%
Total Expenditures 25,329,607 2,330,056 9% 23,890,509 2,729,707 11% Table 1: First Quarter Budget to Actual Comparison
FY 2025-26 FY 2024-25
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• Transient Occupancy Tax: The City has collected $918 thousand through the first quarter, reflecting an increase of $58 thousand compared to the previous year. This revenue is at 11% of the budget, up from 9% at the same point last year. While it is still early to draw conclusions, this revenue stream is tracking as anticipated. • Property Taxes: Most property tax revenues are received in December and April.
However, the City received a late payment of $714 thousand related to the prior fiscal year for vehicle license fees from the State. As a result, the City expects to finish the fiscal year at or above budget but does not recommend adjusting the budget until mid-year. • Sales & Use Taxes: The City received $381 thousand in sales & use taxes. This is an increase from the prior year primarily due to Measure R. The City has received 8% of the budget, which is on track with expectations.
Expenditures
Table 3 below shows a summary of first quarter budget-to-actual revenues through the first quarter for the current fiscal year and the prior year.
Revised
Budget
Actuals as of
09/30/2025
% of
Budget
Actuals as of
09/30/2024
% of
Actuals
Revenues
Transient Occupancy Tax 8,699,852 918,730 11% 859,889 9% Property Taxes 3,711,552 714,237 19% 594 0%
Sales & Use Tax 4,972,232 381,988 8% 258,986 7%
Franchise Tax 1,008,159 - 0% - 0%
Business License Tax 362,543 13,841 4% 157,432 39%
Charges for Services 2,213,282 462,581 21% 629,385 26%
Interest and Investment 518,797 - 0% 137 0%
Other Revenues 1,769,617 60,550 3% 189,971 14%
Transfers in 602,454 - 0% - 0%
Total Revenues 23,858,488 2,551,927 11% 2,096,393 9%
Table 2: First Quarter Revenues
FY 2025-26 FY 2024-25
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General fund expenditures through the first quarter total $2.3 million or 9% of budget. Expenditures are tracking as anticipated.
Budget Adjustments
Table 4 provides a summary of first-quarter Council actions and related budget adjustments not captured in the preceding tables.
Conclusion
Table 5 below shows an updated summary of general fund balances for the fiscal year.
Revised
Budget
Actuals as of
09/30/2025
% of
Budget
Actuals as of
09/30/2024
% of
Actuals
Expenditures
Administrative Services 1,572,528 255,614 16% 310,046 25% City Attorney 1,164,000 146,846 13% 160,565 12%
City Clerk / Communications 1,050,481 120,454 11% 203,032 23% City Council 228,642 29,028 13% 23,361 11%
City Managers Office 2,985,055 586,995 20% 867,498 31%
Community Development 2,270,647 361,613 16% 427,491 21% Public Safety 7,631,997 2,029 0% 8,712 0%
Public Works 4,365,229 819,030 19% 718,680 22%
Non Departmental / Debt Service 918,596 8,448 1% 10,322 2% Operating Transfers 2,157,433 - 0% - 0%
Capital Transfers 985,000 - 0% - 0%
Total Expenditures 25,329,607 2,330,056 9% 2,729,707 11% FY 2025-26 FY 2024-25
Table 3: First Quarter Expenditures
Item Major Funding
Source
Total Fiscal
Impact GF Impact
Budget correction - Planning Collaborative General Fund $ 30,000 30,000$ Total $ 30,000 30,000$
Table 4: Budget Adjustments
FY 2025-26
Budget
Est. Beginning Fund Balance 13,609,329
Revenues 23,858,488
Expenditures (25,359,607)
Net Change to Fund Balance (1,501,119)
Ending Fund Balance 12,108,210
General Fund Reserve (7,303,382)
Economic Uncertainty (1,530,399)
Unassigned 3,274,429
Table 5: General Fund Balance Summary
735
The adopted budget estimated the fund balance on June 30, 2026, to be $12.1 million, of which $8.8 million is reserves and $3.3 million as unassigned. Staff recommend leaving the unassigned funds unallocated until the annual budget or mid-year review process, when more detailed information will be available.
Given that reserves are currently funded at only 36%, which is below the policy target of 50%, staff will recommend to the Council that any unassigned funds be returned to the reserves during the mid-year review.
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Project # Project Title
Total Project
Budget
On June 30, 2025
Expenditures as
of June 30, 2025
Carried
Forward
Addtl Funding
From FY 2025-26
Adoption
FY 2025-26
Budget
A B A+B
Capital Improvement Program
0538 HGHWY 1 SAFETY - NORTH 12,498,000 (1,637,077) 10,860,923 - 10,860,923 0593 POPLAR STREET TRAFFIC CALMING AND SAFETY PROJECT- PHASE I 2,227,931 (2,084,714) 143,217 - 143,217 0595 EASTSIDE PARALLEL TRAIL NORTH - SEGMENT 2 500,000 - 500,000 1,000,000 1,500,000 0608 SEYMOUR DITCH EROSION AND COASTAL STABILIZATION 700,000 (438,824) 261,176 - 261,176 0611 CARTER PARK IMPROVEMENTS 9,045,000 (8,598,179) 446,821 - 446,821 0617 POPLAR BEACH GATEWAYS PLAN 193,885 (188,891) 4,994 - 4,994 0619 EASTSIDE PARALLEL TRAIL NORTH - SEGMENT 4 1,734,000 (607,346) 1,126,654 - 1,126,654 1002 CLIMATE ADAPTATION PLAN 331,619 (309,644) 21,975 - 21,975 1005 PILARCITOS OUTFALL REPAIR AT KEHOE WATERCOURSE 550,000 (192,845) 357,155 - 357,155 1006 ROOSEVELT/PULLMAN WATERSHED 578,000 (57,055) 520,945 - 520,945 1007 MAGNOLIA PARK 280,100 (18,881) 261,220 - 261,220
1008 SMTIH FIELD - PHASE I 536,711 (417,101) 119,610 - 119,610 1011 STORM WATER MASTER PLAN UPDATE 312,000 (139,613) 172,388 140,000 312,388 1013 FRENCHMAN'S CREEK PARK IMPROVEMENTS - PHASE II 350,000 (55,798) 294,202 - 294,202 1014 COSATAL TRAIL OVERLAY (POPLAR TO CENTRAL) 126,000 (30,833) 95,167 200,000 295,167 1017 KEHOE WATERSHED ENHANCEMENT 150,000 - 150,000 - 150,000 1028 HVAC REPAIR / SOLAR ELECTRIFICATION 1,341,137 (220,662) 1,120,475 - 1,120,475 1030 SAFEWAY SEWER MAIN REPAIR 275,000 - 275,000 - 275,000 1031 SECONDARY POPLAR BEACH ACCESS 45,000 - 45,000 45,000 90,000 1033 SAFE STREETS FOR ALL (SS4A) STUDY 150,000 - 150,000 - 150,000 1034 HIGHWAY 1 SOUTH CORRIDOR STUDY 75,000 - 75,000 675,000 750,000 1036 MAIN STREET BRIDGE MAINTENANCE 200,000 (38,739) 161,261 - 161,261 1037 BIKE IMPROVEMENT PROJECT - - - 220,000 220,000
1038 2025 PAVEMENT MANAGEMENT PROJECT - - - 1,000,000 1,000,000 9004 WAVECREST WATER MAIN PROJECT 1,410,000 (49,653) 1,360,348 - 1,360,348 9010 PEDESTRIAN/BICYCLE CONNECTION TO HATCH ELEMENTARY 40,000 - 40,000 740,000 780,000 9022 PILARCITOS CREEK RESTORATION AND REMEDIATION PROJECT 515,000 (52,287) 462,713 - 462,713 Grants & Special Projects
1001 HOUSING ELEMENT IMPLEMENTATION 360,000 (134,807) 225,193 225,193 1032 DOWNTOWN STREETSCAPE MASTER PLAN IMPLEMENTATION 100,000 (48,976) 51,024 51,024 1035 PEDAL FOR A PURPOSE 220,000 (175,478) 44,522 44,522 1039 LCP IMPLEMENTATION PLAN UPDATE - - - 200,000 200,000 AFFORDABLE HOUSING / 555 KELLY DEVELOPMENT 1,500,000 (1,143,965) 356,035 356,035 AFFORDABLE HOUSING / 880 STONE PINE COVE 1,250,000 (839,444) 410,556 410,556 RENTERS PROTECTIONS 300,000 (75,955) 224,045 224,045
OPPORTUNITY COASTSIDE CENTER 2,500,000 (2,164,139) 335,861 335,861 40,394,383 (19,720,904) 20,673,479 4,220,000 24,893,479 Closed Projects
9024 SANITARY SEWER MASTER PLAN
1023 TRAIN DEPOT AND JOHNSTON HOUSE SHORT-TERM IMPROVEMENTS 1027 PERMITTING SYSTEM UPGRADE
City of Half Moon Bay
CIP & Special Projects Final Carryforward
Fiscal Year 2025-26
737
RESOLUTION NO. C-2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING ADJUSTMENTS TO THE FY 2025-26 OPERATING AND CAPITAL BUDGET WHEREAS, the City Council adopted the Fiscal Year 2025-26 Annual Operating and Capital Budget on June 17, 2025; and
WHEREAS, the City Council has reviewed Financial Report for the quarter ended September 30, 2025, and requested adjustments.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Half Moon Bay hereby approves the budget adjustments needed for the City-wide revenues and expenditures to be as follows for the funds below:
******************************************************* I hereby certify that the foregoing is a full, true, and correct copy of a resolution duly passed and adopted on the 4th day of November 2025, by the City Council of the City 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 Funds Fund Title Revenues Expenditures Net Fiscal
Impact
101 General Fund 23,858,488 25,359,607 30,000.00
111 Storm Drain Operating 9,909 88,850 (5,000.00)
112 Traffic Mitigation 175,580 3,031,091 135,843.55
123 Streets and Roads 12,128,448 11,221,739 (357,616.57) 125 Park/Facilities Development 2,158,037 2,013,609 (3,503.03) 126 Affordable Housing 221,052 990,636 (324,361.87)
127 Public Facilities 58,726 550,609 2,503.70
135 Opportunity Center Coastside 387,154 335,861 411,354.20 151 Capital General 6,107,398 8,333,776 (152,028.83)
202 Sewer Capital 1 119,925 2,207,090 (210,511.00)
Totals 45,224,718 54,132,869 (473,320)
Revised Budgets
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: November 4, 2025
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Irma Acosta, Administrative Analyst
TITLE: MINIMUM WAGE AGREEMENT WITH THE COUNTY OF SAN MATEO ______________________________________________________________________________ RECOMMENDATION:
Authorize the City Manager to execute an agreement with the County of San Mateo for investigative services related to enforcement of the City’s Minimum Wage Ordinance, through the County of San Mateo Office of Labor Standards and Enforcement (OLSE).
FISCAL IMPACT:
If approved, the City will pay the County $5,833 for the initial seven-month term of service. If the agreement is renewed, compensation will be $10,000 per year, adjusted annually by the Consumer Price Index (CPI-W).
STRATEGIC ELEMENT:
This update supports the Healthy Communities, Public Safety, and Inclusive Governance elements of the Strategic Plan.
BACKGROUND:
The City Council adopted Ordinance No. 2020-01 on February 4, 2020, establishing a local minimum wage in Half Moon Bay of $15 per hour. Effective January 1, 2021, and each January 1 thereafter, all businesses in Half Moon Bay are subject to a City-wide minimum wage that started at $15 per hour and increases annually based on the Consumer Price Index (CPI) for San Francisco-Oakland-San Jose, as published by the Bureau of Labor Statistics (BLS).
The current minimum wage in Half Moon Bay, effective January 1, 2025, is $17.47 per hour, and applies to all businesses within the City limits. City staff currently oversee and enforce the ordinance. Recently, several cases involving minimum wage violations have been reported to the City, including wage theft and underpayment, necessitating coordination and referral to the San Mateo County District Attorney’s Office. These cases have highlighted the need for formalized procedures and a clear investigative framework to ensure effective handling of complaints.
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In 2025, the County of San Mateo established the Office of Labor Standards and Enforcement (OLSE) to implement and enforce the County’s own Minimum Wage Ordinance, as well as provide education, outreach, and investigative services regarding local labor standards. The County subsequently contacted the City to offer these services under an agreement, creating a formal partnership to handle future cases efficiently. The OLSE currently partners with several cities including Belmont, Burlingame, Foster City, Menlo Park, Redwood City, and San Mateo to make sure there is consistent enforcement of minimum wage and labor standards.
DISCUSSION:
The proposed agreement establishes a formal partnership between the City and the County of San Mateo, under which the County, through its Office of Labor Standards and Enforcement (OLSE), will provide investigative support for potential violations of the City’s Minimum Wage Ordinance.
In recent years, the City and County have worked together informally to address a small number of wage theft and underpayment cases, which required County assistance to ensure a thorough and fair review. This agreement would build on that collaboration by creating a structured and transparent framework for handling future cases. With clear roles and responsibilities defined, the process of investigating complaints will become more consistent and efficient, leading to faster resolution and improved outcomes for both workers and employers.
Under the agreement, the OLSE will receive, assess, and investigate complaints of possible violations of the City’s Minimum Wage Ordinance. When appropriate, OLSE will issue formal findings and a Notice of Violation. If an employer fails to comply after receiving a final notice, the case will be referred to the City for further enforcement. Biannual reports will be provided to the City summarizing complaint activity, investigating outcomes, and overall enforcement trends. Regular coordination meetings will be held between OLSE and City staff to review cases and discuss ongoing compliance efforts. This collaboration approach leverages the County’s expertise and dedicated enforcement infrastructure while minimizing administrative demands on City staff. It also strengthens the City’s capacity to uphold its local labor standards in a timely and consistent manner. The initial agreement term runs from December 1, 2025, through June 30, 2026, with an option to renew on an annual basis.
CONCLUSION
Partnering with the County of San Mateo through its Office of Labor Standards and Enforcement (OLSE) will significantly strengthen the City’s capacity to administer and enforce its Minimum Wage Ordinance. This collaboration will ensure that worker complaints are investigated promptly, handled professionally, and resolved fairly, while providing additional expertise and resources that the City currently lacks in-house. The agreement establishes a formal structure for cooperation that builds upon the strong working relationship the City and County have already developed through previous wage theft and underpayment cases. 740
In addition to enhancing investigative efficiency, the agreement underscores the City’s ongoing commitment to upholding fair labor standards, safeguarding workers' rights, and promoting responsible business practices within the community. It also reinforces the City’s broader goal of promoting a healthy, inclusive, and economically resilient local economy in which both employees and businesses can thrive.
ATTACHMENTS:
1. Resolution
2. Agreement between the City of Half Moon Bay and the County of San Mateo 741
RESOLUTION NO. C-2025-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE COUNTY OF SAN MATEO FOR INVESTIGATIVE SERVICES RELATED TO ENFORCEMENT OF THE CITY’S MINIMUM WAGE
ORDINANCE THROUGH THE COUNTY OFFICE OF LABOR STANDARDS AND ENFORCEMENT WHEREAS, the City Council adopted Ordinance No. 2020-01 on February 4, 2020, establishing a local minimum wage of $15.00 per hour effective January 1, 2021, with annual increases based on the Consumer Price Index (CPI); and
WHEREAS, the current minimum wage, effective January 1, 2025, is $17.47 per hour and applies to all businesses operating within the City limits; and WHEREAS, several wage theft and underpayment cases have required coordination with the County of San Mateo, highlighting the need for a formalized process to ensure fair and timely investigation of complaints; and
WHEREAS, the County has established the Office of Labor Standards and Enforcement (OLSE) to implement and enforce local minimum wage laws and has offered to provide investigative services to the City under a cooperative agreement; and WHEREAS, this agreement will formalize existing collaboration between the City and County, strengthen enforcement of the City’s Minimum Wage Ordinance, and enhance efficiency, fairness, and transparency in complaint resolution; and WHEREAS, the City will compensate the County $5,833 for the initial seven-month term, with an optional renewal at $10,000 per year, subject to annual CPI-W adjustment.
NOW, THEREFORE, BE IT RESOLVED THAT that the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute an agreement with the County of San Mateo for investigative services related to enforcement of the City’s Minimum Wage Ordinance through the Office of Labor Standards and Enforcement (OLSE), in a form approved by the City Attorney.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 4th day of November 2025, by the City Council of Half Moon Bay by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
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ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Assistant City Clerk Robert Brownstone, Mayor 743
1 Agreement No.:
AGREEMENT BETWEEN THE CITY OF HALF MOON BAY AND COUNTY OF SAN MATEO This Agreement is entered into this ______ day of December, 2025, by and between the CITY OF HALF MOON BAY, in the County of San Mateo, State of California (“City”), and the COUNTY OF SAN MATEO, a political subdivision of the State of California (“County”). City and County are sometimes hereinafter collectively referred to as the “Parties”.
* * *
WHEREAS, pursuant to Government Code Section 51300, et seq., County may contract with City for the performance by County of City’s functions; and
WHEREAS, County’s Office of Labor Standards and Enforcement (“OLSE”) will implement and enforce County’s local Minimum Wage Ordinance in its unincorporated areas; and WHEREAS, City’s local Minimum Wage Ordinance, codified in Chapter 3.300 of the Half Moon Bay Municipal Code, and Government Code section 51300 et seq. authorize the use of third parties to assist in implementing and enforcing City’s Minimum Wage Ordinance; and WHEREAS, City and County wish to establish an agreement in which County will provide services to enforce City’s Minimum Wage Ordinance.
Now, therefore, it is agreed by the parties to this Agreement as follows:
1. Exhibits and Attachments
The following exhibit is incorporated by reference herein:
1.1 Exhibit A – Services
2. Services to be Performed by County
In consideration of the payments set forth herein, County, through OLSE, will provide investigative services on behalf of City regarding potential violations of City’s Minimum Wage Ordinance.
2.1 OLSE shall serve as the investigative body for potential violations of City’s Minimum Wage Ordinance but shall not have enforcement authority beyond its investigative role. OLSE will retain sole discretion to determine the method and means of performing investigative services in accordance with the terms, conditions, and specifications set forth in this Agreement and Exhibit A.
2.2 OLSE will direct any questions or issues regarding the interpretation, administration, or enforcement of City’s Minimum Wage Ordinance to City. City must provide timely and appropriate direction responding to OLSE’s questions or issues.
2.3 If OLSE’s investigation identifies violations of City’s Minimum Wage Ordinance and the employer fails to remedy the violation after OLSE issues a final notice of violation as described in Exhibit A, OLSE shall refer such cases back to City for further action.
2.4 Nothing in this agreement shall be construed to limit County’s independent authority under state law to investigate and, at its discretion, prosecute violations of state labor laws. However, OLSE shall not be responsible for enforcing or prosecuting violations of City’s Minimum Wage Ordinance.
744
2 3. Payments
In consideration of the services provided by County in accordance with all terms, conditions, and specifications set forth in this Agreement, including but not limited to Exhibit A, County will submit two invoices to City during the term of the contract. City will pay County at the rate specified in 3.1 of this section. Option and future escalation begin each July 1 upon mutual written agreement by the Parties.
3.1 Compensation: City shall pay County compensation of Five Thousand Eight Hundred and ThirtyThree Dollars ($5,833) for the initial seven-month term.
3.2 Invoicing: County will submit an invoice to City by April 15, 2026 for the total stated in 3.1 for services to be provided in the contracted timeframe. City will provide County with the address of the designated recipient for invoices.
Rate Adjustment – Option Term: Should the parties agree to renew this contract for the one-year option term specified in Section 4.1, City shall pay County compensation of Ten Thousand Dollars ($10,000) plus a percentage of $10,000 equal to the prior year’s increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) calculated by using the preceding August to August change in the CPI-W.
4. Term
This Agreement shall be in full force and effect from 12:01 AM on December 1, 2025, through June 30, 2026. If approval of this Agreement is delayed past the commencement date due to extenuating circumstances, this Agreement shall take effect on the date services by the County commence.
4.1 This Agreement includes the option for the City and County to renew for one additional one-year periods, extending to June 30, 2027, by mutual agreement and subject to the rate adjustment described in Section 3.3. Each party shall notify the other of its intent to renew no later than March 1st of the preceding year.
5. Termination
This Agreement may be terminated by City or County at any time for any reason upon thirty (30) days’ advance written notice.
5.1 County may terminate this Agreement upon less than thirty (30) days’ advance written notice only with cause. In order to terminate for cause, County must first give City notice of the alleged breach. City shall have five (5) business days after receipt of such notice to respond and a total of ten (10) calendar days after receipt of such notice to cure the alleged breach. If City fails to cure the breach within this period, County may immediately terminate this Agreement without further action. The option available in this paragraph is separate from the ability to terminate without cause with appropriate notice described above. In the event that County provides notice of an alleged breach pursuant to this section, County may, in extreme circumstances, immediately suspend performance of services and payment under this Agreement pending the resolution of the process described in this paragraph. County has sole discretion to determine what constitutes an extreme circumstance for purposes of this paragraph, and County shall use reasonable judgment in making that determination.
5.2 County shall be entitled to receive payment for any and all services provided prior to termination of the Agreement. Such payment shall be that prorated portion of the full payment determined by comparing the work/services actually completed to the work/services required by the Agreement. 745
3 5.3 City may terminate this Agreement upon less than thirty (30) days’ advance written notice only based on the unavailability of City funds by providing written notice to County as soon as is reasonably possible after City learns of said unavailability of funding.
5.4 If City terminates for unavailability of funds, City shall pay County for 1) the services actually performed, on or before the effective date of termination; and (2) reasonable cost and expenses the County may have incurred as a direct result of early termination of the Agreement.
6. Ownership of County’s Work Product
Upon termination or expiration of this Agreement, all work product, including documents, reports, and data prepared by County, shall become the property of City. County will retain copies of all materials provided to City.
7. Relationship of the Parties
County performs all work and services under this Agreement as an independent contractor and not as an employee of City. Neither County nor any of its employees, agents, or representatives shall be considered employees, agents, partners, or joint venturers of City.
7.1 No Employment Benefits. Neither County nor any of its employees shall be entitled to any rights, privileges, powers, or advantages of City employees, including but not limited to:
(a) wages, salary, or other forms of compensation;
(b) retirement benefits or pension plans;
(c) health insurance or other medical benefits;
(d) disability or workers' compensation coverage;
(e) paid time off, including vacation, sick leave, or holidays; or (f) any other employee benefits offered by the City to its employees.
7.2 Control of Work. County shall retain sole and absolute discretion in the manner and means of carrying out its activities and responsibilities under this Agreement, subject only to the express terms and conditions of this Agreement.
7.3 Tax Obligations. County shall be solely responsible for all applicable federal, state, and local taxes related to payments received under this Agreement.
8. Indemnification
This provision applies in lieu of Government code 895.6.
8.1 County will indemnify and hold harmless City and its officers, officials, employees, and volunteers from and against all claims, damages, losses and expenses (collectively “Claims”), arising out of the performance of this Agreement, to the extent such claims are caused by any act or omission of County.
8.2 City will indemnify and hold harmless County and its officer, officials, employees, and volunteers from and against all claims, damages, losses, and expenses (collectively “Claims”), arising out of the performance of this Agreement, to the extent such claims are caused by any act or omission of City.
8.3 Notwithstanding anything to the contrary in this Agreement, County’s liability for any action or event occurring (a) during the initial Term will not exceed the maximum dollar amount payable to 746
4 County during the initial Term (b) during the option year will not exceed the maximum dollar amount payable to County during such option year.
9. Insurance
County is self-insured with respect to claims for which it would bear responsibility under this Agreement, including but not limited to liability, automobile, and workers’ compensation claims as authorized under Government Code Section 990.4 and Labor Code Section 3700.
10. Records Retention and Audit Rights
County shall maintain all required records relating to services provided under this Agreement for three (3) years after City makes final payment and all other pending matters are closed, and County shall be subject to the examination and/or audit by City, a Federal grantor agency, and the State of California.
10.1 County shall comply with all program and fiscal reporting requirements set forth by applicable Federal, State, and local agencies and as required by City.
10.2 County agrees upon reasonable notice to provide to City, to any Federal or State department having monitoring or review authority, to City’s authorized representative, and/or to any of their respective audit agencies access to and the right to examine all records and documents necessary to determine compliance with relevant Federal, State, and local statutes, rules, and regulations, to determine compliance with this Agreement, and to evaluate the quality, appropriateness, and timeliness of services performed.
10.3 The County shall retain all records related to this Agreement for three (3) years after final payment. The City shall have the right to audit these records upon reasonable advance written notice.
11. Merge Clause
This Agreement, including the Exhibits and Attachments attached to this Agreement and incorporated by reference, constitutes the sole Agreement of the parties to this Agreement and correctly states the rights, duties, and obligations of each party as of this document’s date. In the event that any term, condition, provision, requirement, or specification set forth in the body of this Agreement conflicts with or is inconsistent with any term, condition, provision, requirement, or specification in any Exhibit and/or Attachment to this Agreement, the provisions of the body of the Agreement shall prevail. Any prior agreement, promises, negotiations, or representations between the parties not expressly stated in this document is not binding. All subsequent modifications or amendments shall be in writing and signed by the parties.
12. Assignments
County shall not assign this Agreement or any portion thereof without the prior written consent of City.
However, County may subcontract with a third party to perform services related to OLSE activities under this Agreement without requiring City’s prior written consent. County shall remain responsible for ensuring that any subcontractor complies with the terms of this Agreement. Any unauthorized assignment shall give City the right to automatically and immediately terminate this Agreement without penalty or advance notice.
13. Controlling Law and Venue
The validity of this Agreement and of its terms, the rights and duties of the parties under this Agreement, the interpretation of this Agreement, the performance of this Agreement, and any other dispute of any nature arising out of this Agreement shall be governed by the laws of the State of California 747
5 without regard to its choice of law or conflict of law rules. Any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California.
14. Dispute Resolution
Should any dispute arise out of this agreement, County and City, or their authorized designees, shall first meet and confer in an attempt to resolve the dispute. Should such efforts fail to resolve the dispute within twenty (20) days, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The cost of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs.
15. Fines and Forfeitures
15.1 City shall be entitled to the fines and forfeitures to which City would be entitled pursuant to City’s Minimum Wage Ordinances and applicable regulations.
15.2 Unless otherwise specified in this Agreement, City shall remain responsible for the billing and collection of these fees. Information obtained by County that is required by City to complete the billing or collection will be forwarded to City.
16. Notices
Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.
In the case of County, to:
Name/Title: Shane Ross, Labor Standards Manager
Address: 500 County Center, 5th Floor, Redwood City, CA 94063 Telephone: 628-204-3982
Email: [email protected]
In the case of City, to:
Name/Title: Matthew Chidester
Address: 501 Main Street, Half Moon Bay, CA 94019
Telephone: 650-726-8272
Email: [email protected]
17. Electronic Signatures
The Parties agree to permit electronic signatures in accordance with California law.
IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have executed this Agreement on the day and year first hereinabove written. 748
6 CITY OF HALF MOON BAY APPROVED AS TO FORM
By: By:
Matthew Chidester, City Manager Catherine Engberg, City Attorney Date:
COUNTY OF SAN MATEO APPROVED AS TO FORM
By: By:
Mike Callagy, County Executive John Nibbelin, County Attorney Date:
749
7 EXHIBIT "A"
SCOPE OF SERVICES
County, through its Office of Labor Standards and Enforcement (OLSE), shall provide investigative services on behalf of City regarding potential violations of City’s Minimum Wage Ordinance. OLSE will serve as the investigative body but shall not be required to enforce its determinations beyond its prescribed role. County shall, however, retain sole discretion to determine:
1. The methods of investigation;
2. The depth and extent of investigation for each matter, including the discretion not to investigate a matter beyond the initial complaint if deemed outside of the scope specified in this contract or is otherwise determined to be inappropriate for investigation;
3. Whether to issue findings and/or a notice of violation and the nature of the finding and content of the notice; and
4. Whether the evidence merits civil prosecution, in which case County, through OLSE, shall have the authority to initiate and pursue such proceedings independently.
5. Whether the evidence merits discussion with a criminal attorney.
Task 1: Responding to Inquiries
OLSE shall:
• Answer general written and telephonic inquiries regarding City’s Minimum Wage Ordinance directly or via subcontracted attorney-managed advice line. • Respond to written inquiries requiring research, including wage rates, coverage applicability, and regulatory clarifications.
Task 2: Complaint Intake & Initial Assessment
OLSE or OLSE Advice Line will receive and assess complaints alleging violations of City’s Minimum Wage Ordinance. Complaint intake will include gathering the following information, when possible:
• Complainant’s name, contact information, and employment details. • Employer’s name, business location, and managerial contacts. • Type of work performed, work schedule, rate of pay, and method of payment. • Supporting documentation, including but not limited to pay stubs, records of hours worked, or other relevant evidence.
Task 3: Investigation of Minimum Wage Violations
1. OLSE will conduct investigations as it determines warranted based on the complaint and available evidence.
2. As part of an investigation, OLSE may request relevant documentation from the employer, including but not limited to:
• Payroll records and timekeeping data.
• Lists of employees with employment dates and job titles. 750
8 • Any other records necessary to determine compliance.
3. If an employer fails to provide requested documentation within fourteen (14) business days, or a reasonable time set by OLSE, or provides incomplete information, OLSE may proceed with its investigation using the available evidence, or may use its discretion to determine further investigation is unlikely to lead to sufficient evidence to determine a violation has occurred.
4. OLSE will review any evidence including employer responses and, when sufficient information is available, determine whether a violation has occurred.
5. OLSE will provide status updates to Complainants throughout the investigation.
Task 4: Findings & Notice of Violation
1. If OLSE determines a violation has occurred, it will calculate any back wages owed and prepare a written Notice of Violation.
2. The notice shall:
• Outline the basis of the violation and supporting evidence. • Provide the employer an opportunity to submit additional information or contest the findings.
3. The employer will have fourteen (14) business days from the date of the notice to:
• Submit additional documentation proving compliance; and/or • Request a meeting with OLSE’s designated representative to contest the violation.
Task 5: Review of Employer's Response
If the employer contests the violation, OLSE shall:
1. Review any additional information provided.
2. Conduct follow-up investigations as necessary.
3. Issue a final written determination outlining its findings to the employer, with a copy to the complainant(s).
4. If the employer fails to come into compliance after OLSE issues a final written, OLSE will transmit the determination and supporting record to the City for consideration of further enforcement action to be taken by the City.
Task 6: Reporting & Compliance Monitoring
OLSE will provide City with biannual reports summarizing:
• The number of complaints received.
• The number of investigations initiated, active and closed. • The number of confirmed cases and violations.
• Any actions taken, including restitution of wages and penalties assessed.
Task 7: Public Outreach/ Information
751
9 Upon request by the City, OLSE shall:
• Provide informational materials regarding compliance with the ordinance.
Task 8: Meetings & Coordination
Upon request of City, OLSE will meet with City up to twice per year to have a general discussion of matters related to the enforcement of City’s Minimum Wage Ordinance. Additionally, OLSE will attend additional meetings if an investigation's findings warrant further discussion and City requests such meetings.
Meetings will address:
• Active investigations.
• Completed complaints.
• General enforcement trends and compliance efforts.
Task 9: Annual Minimum Wage Updates
OLSE shall:
• Annually update the minimum wage rate based on the Consumer Price Index (CPI) as identified in City’s Minimum Wage Ordinance.
• Notify City of changes to the minimum wage rate by September 15 of each year, contingent upon the release date of the Consumer Price Index rate.
General Provisions
• County is not obligated to undertake any enforcement actions beyond those specified unless otherwise agreed upon in writing by both parties.
• City acknowledges that OLSE's role is limited to investigation and determination of whether a violation occurred, but does not include administrative enforcement or adjudication. 752
City
Treasury
Fiscal
Agents
Carrying
Amount
Fair
Value
Quarterly
Yield
Quarterly
Interest
Earnings
FYTD
Interest
Earnings
Petty Cash - 617 617 617 - -
Wells Fargo Bank:
Checking 5,388,504 - 5,388,504 5,388,504 - -
Payroll 7,923 - 7,923 7,923 - -
California State Treasurer:
LAIF - General Fund 8,677,389 - 8,677,389 8,694,133 4.24% - - San Mateo County Treasurer
SMC Pool - General Fund 34,384,704 - 34,384,704 34,841,677 3.85% - - TOTAL CASH AND INVESTMENTS 48,459,138 - 48,459,138 48,932,854 - -
2. Investment maturities:
Investments at September 30, 2025 mature as follows:
City
Treasury
Fiscal
Agents
Total
Available immediately 48,459,138 - 48,459,138
Maturities less than one year - - -
Maturities of one to five years - - -
Greater than five years - - -
Total - 48,459,138 48,459,138
3. Investments Sectors, as a percentage of total portfolio and also with investment performance comparisons:
Demand Deposits and Money
Market 11.14% Date Total Yield Interest
Local Agency Investment Fund 17.91% 9/30/2023 45,896,460 2.97% - San Mateo Co. Investment Pool 70.96% 9/30/2024 48,898,693 3.62% - Fiscal Agent 0 9/30/2025 48,932,854 3.50% -
100.00%
Date
Date
Finance Manager
Administrative Services Director
I certify that this reports all Government Agency pooled investments and is in conformity with the investment policy of the City of Half Moon Bay as stated in resolution number C-2019-107 dated December 17th, 2019. A copy of this Resolution is available at the office of the City Clerk and on the cities website http://www.hmbcity.com. The Investment Program provides sufficient cash flow liquidity to meet the estimated expenditures of the next six months, as required by Code Section 53646.
Investment maturities may not exceed five years with the exception of investments as specified in bond debt covenants. Investment yield is ranked after safety and liquidity in making investment decisions.
The City limits market risk by limiting the types and maturities of its investments and by not borrowing against those investments.
City of Half Moon Bay
Treasurer's Report
September 30, 2025
Investment performance comparisons
*Fair Value (GASB 31) includes investment returns which are not yet realized and at amortized costs. Information is obtained from individual institutions' portfolio statements.
1. Cash and investments were comprised of the following instruments as of September 30, 2025, shown with the carrying amount, fair value, and corresponding yields on investment and interest earnings:
Investment sectors as a % of total portfolio
Docusign Envelope ID: 110B556C-7A87-47D2-B90A-DF827E518A36 10/29/2025
10/29/2025
75327
GENERAL FUND 14,748,176.45
RESTRICTED FUNDS
STORM DRAIN OPERATING FUND 270,809.60
TRAFFIC MITIGATION FUND 4,710,512.67
LIBRARY 17,721.31
MAIN STREET BRIDGE 59,339.99
GAS TAX 2,787,496.79
STREET AND ROAD FUND 1,749,394.38
MEASURE A FUND 2,395,083.49
PARK FACILITY DEVELOPMENT 571,330.95
AFFORDABLE HOUSING 5,121,887.93
PUBLIC FACILITIES 1,392,237.44
POLICE SPECIAL REVENUE 1,162,096.82
JOB-BOND PROCEED FD 0.96
GENERAL PLAN FEE SPECIAL REVENUE 17,582.50
MEASURE W FUND 1,105,345.49
LOT ACQUISITION/DEVELOPMENT 1,407,770.47
CZI GRANTS 27,476.99
OCC GRANT (758,201.62)
JOB - DEBT SERVICE FD 6,834.08
GEN FD CAPITAL PROJECTS 2,927,491.03
DRAINAGE FUND 1,274,149.06
LIBRARY CAPITAL 500,817.68
CARTER PARK CAPITAL 2,000.00
GENERAL LONG TERM DEBT -
SEWER FUNDS 2,163,280.27
VEHICLE REPLACEMENT 208,415.01
FURN/FIXT & EQUIP FUND 942,012.52
RISK MANAGEMENT 3,583,029.55
RETIREMENT STABILIZATION 65,045.76
TOTAL RESTRICTED FUNDS 33,710,961.12
GENERAL LEDGER (BOOK) TOTAL 48,459,137.57
BANK BALANCES ON 09/30/2025
WELLS FARGO GENERAL CHECKING 5,597,601.77
WELLS FARGO PAYROLL CHECKING 7,923.09
LOCAL AGENCY INVESTMENT FUND (LAIF) 8,677,388.95
SAN MATEO COUNTY INVESTMENT POOL 34,384,704.44
Add: PETTY CASH ACCOUNTS 617.46
RECONCILING ITEMS -
Less: OUTSTANDING CHECKS (225,160.66)
Plus: DEPOSITS IN TRANSIT 16,062.52
Plus: VOID CHECKS -
BANK RECONCILIATION TOTAL 48,459,137.57
CITY OF HALF MOON BAY
CASH AND INVESTMENTS REPORT
FOR QUARTER ENDING 09/30/2025
Docusign Envelope ID: 110B556C-7A87-47D2-B90A-DF827E518A36 75428