Half Moon Bay City Council
June 2, 2026

CITY COUNCIL AGENDA

CITY COUNCIL REGULAR MEETING

CITY OF HALF MOON BAY
TUESDAY, JUNE 2, 2026
7:00 PM

TED ADCOCK COMMUNITY CENTER,
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Debbie Ruddock, Mayor
Deborah Penrose, Vice Mayor
Robert Brownstone, Councilmember
Patric Jonsson, Councilmember
Paul Nagengast, Councilmember
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 Business or Public Hearing matter will be called forward at the appropriate time during that item´s consideration.

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

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

In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the city to provide reasonable accommodation to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
http://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

3.A FUTURE LEADER'S CIVICS ACADEMY GRADUATION

3.B STUDENT AWARDS

3.C COUNTY HOUSING STONE PINE COVE PRESENTATION

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

5. REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

6. COMMISSION / COMMITTEE UPDATES

6.A PARKS AND RECREATION COMMISSION REPORT OUT

6.B PLANNING COMMISSION REPORT OUT

7. CITY MANAGER UPDATES TO COUNCIL

7.A LOCAL HAZARD MITIGATION PLAN UPDATE

7.B MAIN STREET BRIDGE UPDATE

8. PUBLIC FORUM
2 9. CONSENT CALENDAR

9.A WAIVE READING OF ORDINANCES AND RESOLUTIONS

9.B TREASURER'S REPORT FOR THE QUARTER ENDING MARCH 31, 2026 Staff Recommendation: By motion, accept the Treasurer’s Report for the quarter ending March 31, 2026.

STAFF REPORT
ATTACHMENT - Report

9.C APPROVE MINUTES OF THE MAY 19, 2026 SPECIAL MEETING ATTACHMENT- May 19, 2026 Special Meeting Minutes

9.D APPROVE MINUTES OF THE MAY 19, 2026 REGULAR MEETING ATTACHMENT- May 19, 2026 Regular Meeting Minutes

9.E DISPLAY OF THE LGBTQ FLAG FOR THE MONTH OF JUNE 2026 AT CITY HALL TO

COMMEMORATE PRIDE MONTH
Staff Recommendation: Adopt a Resolution authorizing the display of the LGBTQ Progress Flag at City Hall for the month of June 2026.

STAFF REPORT
ATTACHMENT - Resolution

9.F RESOLUTIONS CALLING FOR THE HOLDING OF THE NOVEMBER 3, 2026 GENERAL

MUNICIPAL ELECTION
Staff Recommendation: Adopt a resolution calling for the General Municipal Election to be held on Tuesday, November 3, 2026, for the election of certain officers, and adopt a resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 3, 2026, and authorizing the City Manager to enter into a service agreement with the County of San Mateo for the provision of election services.

STAFF REPORT
ATTACHMENT 1 - General Municipal Election Resolution
ATTACHMENT 2 - Request BOS to Consolidate Election

9.G ACCEPTANCE OF AUDITOR'S REPORTS FROM THE FISCAL YEAR 2023-24 AUDIT 3 Staff Recommendation: Accept the Required Communications and Memorandum of Internal Control reports from the Fiscal Year 2023-24 independent auditor.

STAFF REPORT
ATTACHMENT 1 - Required Communications
ATTACHMENT 2 - Memorandum of Internal Control for the Year Ended June 30, 2024

9.H ACCEPTANCE OF AUDITOR’S REPORTS FROM THE FISCAL YEAR 2024-25 AUDIT Staff Recommendation: Accept the Required Communications and Memorandum of Internal Control reports from the Fiscal Year 2024-25 independent auditor.

STAFF REPORT
ATTACHMENT 1 - Required Communications for the Year Ended June 30, 2025 ATTACHMENT 2 - Memorandum of Internal Control for the Year Ended June 30, 2025

9.I FINAL ACCEPTANCE OF THE JOHN L. CARTER PARK IMPROVEMENTS PROJECT (CIP NO. 0611)
Staff Recommendation: Adopt a resolution authorizing the City Manager or his designee to file a Notice of Completion for the John L. Carter Park Improvements Project (CIP Project No. 0611), release the project Performance and Labor and Materials Bonds, and release the retention funds in accordance with applicable laws.

STAFF REPORT
ATTACHMENT - Carter Park NOC Resolution

9.J AMENDMENT TO AGREEMENT WITH MAZE & ASSOCIATES FOR INDEPENDENT AUDITING

SERVICES
Staff Recommendation: Adopt a resolution authorizing the City Manager to execute a oneyear amendment to the agreement with Maze & Associates Accountancy Corporation for independent auditing services, to extend the term of the Agreement for an additional year through April 30, 2027, and increase the compensation by $62,940 for a total not to exceed agreement amount of $325,690.

STAFF REPORT
ATTACHMENT - Resolution

10. ORDINANCES AND PUBLIC HEARINGS
4 10.A COMPLIANCE WITH ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3 REGARDING VACANCIES, RECRUITMENT, AND RETENTION EFFORTS Staff Recommendation: Receive a presentation and conduct a public hearing at which the City will report on workforce vacancies, recruitment, and retention efforts.

STAFF REPORT

10.B FISCAL YEAR 2026-27 MASTER FEE SCHEDULE
Staff Recommendation: Conduct a public hearing and adopt a resolution adopting an updated Master Fee Schedule for Fiscal Year 2026-2027 and approving a 1.7% Consumer Price Index (CPI) adjustment to certain applicable fees.

STAFF REPORT
ATTACHMENT 1 - Resolution
ATTACHMENT 2 - Fee Schedule

11. RESOLUTIONS AND STAFF REPORTS

11.A BALLOT MEASURE AMENDING MEASURE D, THE CITY'S VOTER-APPROVED

RESIDENTIAL GROWTH LIMITATIONS PROGRAM
Staff Recommendation: 1) Adopt a resolution approving a proposed Ordinance to amend the City's Local Coastal Land Use Plan, Policy 2-16, and Half Moon Bay Municipal Code, Title 17 (Subdivisions), sections 17.06.020(E) and 17.06.065 and Title 18 (Zoning), section

18.04.010(E) and other conforming edits to amend the Measure D "Downtown Area" to be the area designated as the Town Center in Figure 2-2 of the Local Coastal Land Use Plan; and placing a measure on the November 3, 2026 general election ballot, seeking voter approval of the proposed Ordinance to amend the Measure D Downtown Area; and 2) Find the amendments exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., "CEQA," and 14 Cal. Code Regs. Sections 15000 et seq., "CEQA Guidelines"), under CEQA Guidelines section 15265 (adoption of coastal plans and programs); and 3) Discuss and determine if the City Council wishes to submit an argument in favor of the proposed ballot measure, and if so, which Councilmember(s) would write it.

STAFF REPORT
ATTACHMENT 1 - Resolution Setting a Measure on the Ballot to Amend Measure D ATTACHMENT 2 - City of Half Moon Bay Measure to Amend the Downtown Area for Residential Growth Management Policies
ATTACHMENT 3 - Measure D 1999 Full Text
5 ATTACHMENT 4 -Discussion Summary - Planning Commission Item 6C, May 12, 2026

11.B FISCAL YEAR 2026-27 RECOMMENDED BUDGET
Staff Recommendation: Staff recommends that the City Council take the following actions:
1) Receive a presentation on the FY 2026-27 Recommended Budget, and after accepting public comments and providing any additional recommended changes, direct staff to return with the final proposed budget for adoption on June 16, 2026 and 2) Adopt the Fiscal Sustainability Plan to provide a long-term framework for addressing the City’s ongoing structural fiscal challenges and guiding future financial decision-making.

STAFF REPORT
ATTACHMENT 1 - Resolution
ATTACHMENT 2 - Budget
ATTACHMENT 3 - Forecast and Fiscal Sustainability

11.C COMMUNITY SERVICES FINANCIAL ASSISTANCE PROGRAM
Staff Recommendation: 1) Receive a subcommittee update on the Community Services Financial Assistance (CSFA) grant program and provide guidance to staff on grant awards and amounts for FY 2026-27 and 2) Adopt a resolution authorizing City Manager to execute grant agreements with recipients of the Community Services Financial Assistance (CSFA) grant based on guidance provided.

STAFF REPORT
ATTACHMENT - Resolution CSFA FY 26-27

11.D DEVELOPMENT OF A RENTAL ASSISTANCE PROGRAM
Staff Recommendation: Adopt a Resolution establishing a Rental Assistance Program and authorizing the City Manager to execute an agreement with Coastside Hope for program administration services, at a cost not to exceed $120,000, for a term of one year.

STAFF REPORT
ATTACHMENT 1 - Rental Assistance Program Resolution
ATTACHMENT 2 - Program Guidelines
ATTACHMENT 3 - Draft Agreement

11.E TENANT LEGAL SERVICES AGREEMENT WITH COMMUNITY LEGAL SERVICES IN EAST PALO ALTO
Staff Recommendation: Adopt a Resolution authorizing the City Manager to execute an 6 agreement with Community Legal Services in East Palo Alto (CLSEPA) for the provision of tenant legal services, tenant rights education, and housing-related legal support services for Half Moon Bay residents in an amount not to exceed $40,000 for a term of one year.

STAFF REPORT
ATTACHMENT 1 - CLSEPA Partnership Resolution
ATTACHMENT 2 - CLSEPA Supporting Document
ATTACHMENT 3 - Draft Agreement

12. FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS

13. CITY COUNCIL REPORTS

14. ADJOURNMENT
7

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: May 19, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: TREASURER’S REPORT FOR THE QUARTER ENDING MARCH 31, 2026 ______________________________________________________________________________ RECOMMENDATION:

By motion, accept the Treasurer’s Report for the quarter ending March 31, 2026.

FISCAL IMPACT:

There is no fiscal impact with the acceptance of this report.

STRATEGIC ELEMENT:

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

BACKGROUND:

In accordance with Government Code Section 53600 et seq., the City’s Treasurer is to provide the City Council with a report on investments on a quarterly basis. As shown in the Treasurer’s Report (Attachment 1), the City’s investments are in external investment pools listed at cost, as well as its fair value, not amortized cost, in compliance with Governmental Accounting Standard. The City’s investment practices strictly follow Government Code Section 53600 et seq., the City’s investment policy, and a prudent person’s rule.

DISCUSSION:

The City’s cash and investment portfolio, at fair market value, as of March 31, 2026, is $53.9 million of which $38.4 million is placed with the San Mateo County Treasurer’s Investment Pool and $8.9 million is placed with the State Controller’s Local Agency Investment Fund (LAIF), and $6.6 million in operating accounts with Wells Fargo Bank. The average weighted yield for the City’s cash and investments is 3.48 % for the quarter.

ATTACHMENT:

Treasurer’s Report for the quarter ending March 31, 2026 8 9
10 MINUTES

CITY OF HALF MOON BAY CITY COUNCIL
TUESDAY, MAY 19, 2026

SPECIAL MEETING
ADCOCK COMMUNITY CENTER, 535 KELLY AVENUE

1. CONVENE SPECIAL MEETING / ROLL CALL
Mayor Ruddock called the Special Meeting to order at approximately 6:00 p.m. Councilmember Penrose was absent.

2. OPEN SESSION IDENTIFICATION OF CLOSED SESSION ITEMS

3. PUBLIC COMMENT ON CLOSED SESSION ITEMS

4. CLOSED SESSION

4.A CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Real property located at 1000 N. Cabrillo Hwy., Half Moon Bay CA 94019 (APN 048-24- 0030)-Wastewater Treatment Facility
Agency negotiator: Matthew Chidester, City Manager
Negotiating parties: Sewer Authority Mid-Coastside (SAM JPA) and City of Half Moon Bay Under negotiation: Price and Terms of Payment.

Councilmember Jonsson recused from the item.

4.B CONFERENCE WITH LABOR NEGOTIATORS – Pursuant to Government Code section 54957.6 Agency designated representatives: Christopher Ko Boucher, Esq., Alex Avakiantz, Esq., Matthew Chidester, and Kenneth Stiles
Employee organization and Unrepresented employees: International Union of Operating Engineers, Local 39; Non-Represented Confidential Employees; Unrepresented Executive Employees; Represented Management

5. ADJOURN SPECIAL MEETING
Mayor Ruddock adjourned the Special Meeting at approximately 6:50 p.m.

Respectfully Submitted:

Maggie Rodriguez, Interim City Clerk
*Approved by the City Council at the _____, 2026 Regular meeting. 11 MINUTES

CITY OF HALF MOON BAY CITY COUNCIL
TUESDAY, MAY 19, 2026
ADCOCK COMMUNITY CENTER, 535 KELLY AVENUE

1. ROLL CALL / PLEDGE OF ALLEGIANCE
Mayor Ruddock called the Regular Meeting to order at 7:12 p.m. and led the pledge of allegiance.

Interim City Clerk Rodriguez called the Roll Call.

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

2. APPROVAL OF AGENDA
MOTION
Councilmember Nagengast moved and Councilmember Brownstone seconded a motion to move item 4 ahead of item 3. The Motion carried unanimously.

Councilmember Brownstone moved and Mayor Ruddock seconded a motion to approve the agenda.

The motion carried by unanimous vote.

3. PROCLAMATIONS AND PRESENTATIONS

3.A NATIONAL PUBLIC WORKS WEEK PROCLAMATION
City Manager Chidester welcomed and thank the Public Works Staff in honor of Nation Public Works Week. Mayor Ruddock presented the proclamation to Public Works Staff. Councilmember Nagengast spoke and delivered the proclamation to Public Works Staff.

3.B MIDCOAST COMMUNITY COUNCIL UPDATE
Kimberly Williams from Midcoast Community Council provided an update on recent meetings. Fire mitigation meetings happened. Surfers Beach CalTrans report update was received, concept ideas for long term ideas on Highway 1. Development of Local Hazard Mitigation Plan, a countywide effort, with the comment period currently open until June 15, 2026. Finally, Highway 1 roadway rehabilitation is currently underway as well as the SAM Force Main Project. 12 May 19, 2026
City Council Minutes

4. MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE Mayor Ruddock announced the passing of former Mayor Al Adreveno on Sunday May 17, 2026 at 102 years of age. Council shared the life and history of former Mayor Adreveno and their memories of him to present family and members of the community.

The following individuals addressed the council:
• Joaquin Jimenez

5. REPORT OUT FROM RECENT CLOSED SESSION MEETINGS
Interim City Attorney Bazzano reported the Council met in Closed Session on May 19, 2026 on two items. Councilmember Jonsson recused on the first item due to proximity. There was no reportable action.

6. COMMISSION / COMMITTEE UPDATES

6.A BPAC REPORT OUT
Interim City Engineer Leda Provided an update on the BPAC Meeting. Next meeting is July 2, 2026.

7. CITY MANAGER UPDATES TO COUNCIL

7.A MAIN STREET BRIDGE UPDATE
Interim Public Works Director Seeley updated council on Main Street Bridge renovations. Phase 1 is now scheduled to begin Tuesday May 26, 2026. Street side repairs will begin June 8, 2026 with roads being restricted from 8:00am to 4:30pm.

8. PUBLIC FORUM
The following individuals addressed the Council:
•Rocio Avila
• Joaquin Jimenez
•Anita Rees
•Armando Avila
•Nancy Fontana
•Evelyn de Souza
•Carolina Carbajal
•Pepper Black
• Susie Morasci
13 May 19, 2026
City Council Minutes

•Heather Shirely

9. CONSENT CALENDAR
MOTION
Councilmember Brownstone moved and Mayor Ruddock seconded a motion to approve Consent Calendar. The motion carried by 4-0 unanimous vote.

9.A WAIVE READING OF ORDINANCES AND RESOLUTIONS

9.B APPROVE MINUTES OF THE MAY 5, 2026 SPECIAL MEETING

9.C APPROVE MINUTES OF MAY 5, 2026 REGULAR MEETING

9.D ACCEPT THE WARRANTS FOR THE MONTH OF APRIL 2026

9.E FINANCIAL REPORT FOR THE QUARTER ENDED ON MARCH 31, 2026

9.F RESOLUTION 2026-28 SENATE BILL 1 LOCAL STREETS AND ROAD IMPROVEMENT PROJECT LIST - FY 2026-27

9.G RECEIPT OF LEGISLATIVE POSITION LETTER

9.H RESOLUTION 2026-29 AMENDMENT TO AGREEMENT WITH THE COUNTY OF SAN MATEO FOR

ANIMAL CONTROL SERVICES

10. ORDINANCES AND PUBLIC HEARINGS -None

11. RESOLUTIONS AND STAFF REPORTS
RECESS
Mayor Ruddock requested a break at 8:22. The Meeting reconvened at 8:32 pm with all four councilmembers present.

11.A 2026 SUMMER BEACH UPDATE
Interim Public Works Director Seeley and Captain Allen presented the item. City Council asked clarifying questions of staff and discussed the applicants.

11.B CAPITAL IMPROVMENT PROGRAM UPDATE
Interim City Engineer Leda and Interim Public Works Director Seeley presented the staff report.

Council discussed the item, asked clarifying questions and provided direction to staff.

11.C SEWER AUTHORITY MID-COASTSIDE REVISED FISCAL YEAR 2026-27 OPERATIONS AND

MAINTENANCE (GENERAL) BUDGET
14 May 19, 2026
City Council Minutes

Interim City Engineer Leda presented the staff report. Council discussed the item and asked clarifying questions.

MOTION
Councilmember Brownstone moved and Councilmember Jonsson seconded a motion to adopt Resolution No. 2026-30 approving the Sewer Authority Mid-Coastside General (Operations and Maintenance) Budget for FY 2026-27. The motion carried unanimously with a 4-0 vote.

11.D HALF MOON BAY SEWER COLLECTION SERVICES BUDGET AND SYSTEM MAINTENANCE

AGREEMENT WITH SEWER AUTHORITY MID-COASTSIDE
Interim City Engineer Leda presented the staff report. Council discussed the item and asked clarifying questions.

MOTION
Councilmember Brownstone moved and Councilmember Jonsson seconded a motion to adopt Resolution No. 2026-31: 1) Approving the FY 2026-27 Sewer Authority Mid-Coastside Contract Collection Services Budget of $912,935 and the total participating agency revenue requirement of $960,622 included as Exhibit A to this resolution, of which the City’s share is $331,415 and; 2) Authorizing the City Manager to execute Amendment No. 9 to the sewer collection system maintenance professional services agreement with SAM, establishing the FY 2026-27 annual cost for the City’s share at $331,415 and extending the Agreement for one additional year, through June 30, 2027. The motion carried unanimously with a 4-0 vote.

11.E PURCHASE OF A NEW CAT 249D3 COMPACT TRACK LOADER
Interim PW Director Seeley presented the item. Council asked clarifying questions of staff.

MOTION
Councilmember Nagengast moved and Councilmember Brownstone seconded a motion to adopt Resolution No. 2026-32 authorizing the City Manager to execute a purchase agreement in the amount of $80,513.63 with Peterson CAT for purchase of a CAT 249D3 Compact Track Loader, conditioned upon the ability to make the turn with the equipment and store the equipment indoors.

The motion carried unanimously with a 4-0 vote.

11.F CARTER PARK FEE SCHEDULE
Interim Deputy City Manager Decker presented the item. Council asked clarifying questions of staff. 15 May 19, 2026
City Council Minutes

The following individuals addressed the council:
• Nancy Fontana
MOTION
Councilmember Brownstone moved and Councilmember Jonsson seconded a motion to adopt Resolution No. 2026-33 approving a tiered fee schedule for Carter Park and direct staff to monitor utilization and return with adjustments as needed. The motion passed unanimously with a 4-0 vote.

11.G AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH COUNTY OF SAN MATEO SHERIFF'S OFFICE
City Manager Chidester presented the staff report. The City Council asked clarifying questions of staff.

MOTION
Councilmember Brownstone moved and May 2 seconded a motion to create an ad hoc committee consisting of Brownstone and Nagengast to provide next steps, any recommended changes review the proposed agreement.

12. FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS
None.

13. CITY COUNCIL REPORTS
Councilmember Nagengast mentioned the Holy Ghost Chamarita that is taking place May 23, 24 and 25 at the IDES Hall.

14. ADJOURNMENT
Mayor Ruddock adjourned the meeting at approximately 10:35 p.m.

Respectfully Submitted:

Maggie Rodriguez, Interim City Clerk
*Approved by the City Council at the ____Regular meeting. 16 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maggie Rodriguez, Interim City Clerk
TITLE: DISPLAY OF THE LGBTQ FLAG FOR THE MONTH OF JUNE 2026 AT CITY HALL TO

COMMEMORATE PRIDE MONTH
______________________________________________________________________________ RECOMMENDATION:

Adopt a Resolution authorizing the display of the LGBTQ Progress Flag at City Hall for the month of June 2026.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

STRATEGIC ELEMENTS:

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

BACKGROUND:

The City Council of the City of Half Moon Bay wishes to express its support for Pride Month and the Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ) community in the United States, and specifically on the Coastside.

The display of the LGBTQ Pride Flag, also known as the Rainbow Flag, and the newer Progress Flag, serves to express the City’s official commemoration of this important event in U.S. history and its commitment to celebrating diversity.

DISCUSSION:

The City Council has adopted a flag policy to establish clear guidelines on the display of all flags, including commemorative or ceremonial flags, at City Hall. The policy established that the City’s flagpoles are not intended to be a forum for free expression by the public. The Policy (section

2.3.3) also specifies that a Resolution must be adopted for specific commemorative or ceremonial flags to be flown at City facilities
17 Consistent with the City’s practice, the proposed Resolution would authorize the LGBTQ Progress Flag to be flown at City Hall for the month of June, 2026.

ATTACHMENT:

LGBTQ Progress Flag Resolution
18 RESOLUTION NO. C-2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE DISPLAY OF THE LGBTQ FLAG FOR THE MONTH OF JUNE 2026 AT CITY HALL TO

COMMERORATE LGBTQ PRIDE MONTH
WHEREAS, the City Council of the City of Half Moon Bay wishes to express our support for Pride Month and the Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ) community in the United States, and
WHEREAS, the display of the LGBTQ Progress Flag serves to express the City’s official commemoration of this important event in U.S. history and its commitment to celebrating diversity, and
WHEREAS, the City’s flagpoles are not intended to be a forum for free expression by the public, and
WHEREAS, the LGBTQ Progress Flag will be flown for the month of June 2026 at City Hall.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Half Moon Bay hereby authorizes the display of the Progress Flag on the City flagpole located in front of City Hall for the month of June 2026 to celebrate and honor LGBTQ Pride month. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 19 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maggie Rodriguez , Interim City Clerk
TITLE: RESOLUTIONS CALLING FOR THE HOLDING OF THE NOVEMBER 3, 2026, GENERAL

MUNICIPAL ELECTION
RECOMMENDATION:

Adopt a resolution calling for the General Municipal Election to be held on Tuesday, November 3, 2026, for the election of certain officers, and adopt a resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 3, 2026, and authorizing the City Manager to enter into a service agreement with the County of San Mateo for the provision of election services.

FISCAL IMPACT:

The San Mateo County Elections Office estimate for the November General Municipal Election is approximately $45,000. An additional $5,000 is required for advertising, translation services, and printing of election manuals and other candidate materials. If any measures are added, they would be added at roughly $10,000 per measure. These costs have been incorporated into the proposed FY 2026-27 Budget.

DISCUSSION:

There are three City Council seats (District 1, District 4 and District 5) available in the November 3, 2026 election.

The nomination period for candidates opens Monday, July 13, 2026 at 9:00 a.m. and ends Friday, August 7, 2026 at 5:00 p.m. City Hall operating hours will determine the local filing deadlines in Half Moon Bay (Friday closures). The City Clerk’s Office will be scheduling appointments for both pulling and filing of nomination papers.

The service agreement for County election services has been proposed by the County but is currently being reviewed by the various cities within the County.

ATTACHMENTS:

1. Resolution calling for the holding of a General Municipal Election to be held on Tuesday, 20 November 3, 2026, for the election of certain officers.

2. Resolution requesting the Board of Supervisors of the County of San Mateo to consolidate a General Municipal Election to be held on Tuesday, November 3, 2026. 21 RESOLUTION NO. C-2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE

LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 3, 2026, for the election of three City Council seats (District 1, District 4 and District 5).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

1. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of Half Moon Bay, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing three members of the City Council (District 1, District 4 and District 5) for a full term of four years each.

2. That the ballots to be used at the election shall be in form and content as required by law.

3. That the City Clerk is authorized, instructed, and directed to coordinate with the County of San Mateo Registrar-Recorder / County Clerk to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

4. That the polls for the election shall be open at 7:00 a.m. on the day of the election and shall remain open continuously from that time until 8:00 p.m. on the same day when the polls shall be closed, pursuant to Election Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.

5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.

7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of San Mateo RegistrarRecorder / County Clerk, the City Council, in accordance with Election Code § 15651(b), 22 shall conduct a special runoff election to resolve the tie vote and such special runoff election is to be held on a Tuesday not less than 40 days nor more than 125 days after the administrative or judicial certification of the election which resulted in a tie vote.

8. That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office may file a Candidate’s Statement of Qualifications, not to exceed 200 words, on an appropriate form provided by the City Clerk at the time of returning nomination papers for filing. Said statement shall be translated to Spanish and included in the Voter Information Pamphlet and Sample Ballot to be mailed to all registered voters unless said statement is withdrawn by the candidate no later than 5:00 p.m. of the next working day after the close of the nomination period. Each candidate filing a Candidate’s Statement of Qualifications shall be responsible for payment of a pro-rata share of costs of printing, handling, and mailing as a condition of having his or her statement included in the voter’s pamphlet. A deposit of $500 shall be required and the City Clerk shall bill each candidate for any cost in excess of the deposit or shall refund within 30 days of the election any unused portion of the deposit.

9. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

Ayes, Councilmembers:

Noes, Councilmembers:

Absent, Councilmembers:

Abstain, Councilmembers:

ATTEST: APPROVED:
___________________________ ______________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 23 RESOLUTION NO. C-2026-__

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

BOARD OF SUPERVISORS OF THE COUNTY OF SAN MATEO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE; AND

AUTHORIZING THE CITY MANAGER TO ENTER INTO A SERVICE AGREEMENT FOR THE

PROVISION OF ELECTION SERVICES
WHEREAS, the City Council of the City of Half Moon Bay called a General Municipal Election to be held on November 3, 2026, for the purpose of the election of three City Council seats (District 1, District 4 and District 5); and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city, the precincts, polling places, and election officers of the two elections be the same, and that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of San Mateo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of the election of three City Council seats (District 1, District 4 and District 5) and potential ballot measures.

2. That the County Election Department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election.

4. That the City of Half Moon Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs, which are estimated to be $45,000, plus roughly $10,000 for each measure added.

5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the County Election Department of the County of San Mateo. 24 6. That the City Manager is authorized to enter into a Service Agreement for the Provision of Election Services between the City of Half Moon Bay and the San Mateo County Chief Elections Officer, in a form approved by the City Attorney.

7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

Ayes, Councilmembers:

Noes, Councilmembers:

Absent, Councilmembers:

Abstain, Councilmembers:

ATTEST: APPROVED:
___________________________ ________________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 25

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: ACCEPTANCE OF AUDITOR’S REPORTS FROM THE FISCAL YEAR 2023-24 AUDIT ______________________________________________________________________________ RECOMMENDATION:

Accept the Required Communications and Memorandum of Internal Control reports from the Fiscal Year 2023-24 independent auditor.

FISCAL IMPACT:

There is no fiscal impact with the acceptance of this report.

STRATEGIC ELEMENT:

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

BACKGROUND:

For the fiscal year ending June 30, 2024, the City retained Maze & Associates to perform the annual independent audit. The audit concluded with the final financial statements and the delivery of the Annual Comprehensive Financial Report (ACFR) to the City Council, which included the Independent Auditors’ Report.

In addition to the ACFR, the auditor issued the Required Communications and Memorandum of Internal Control reports for City Council acceptance. These reports summarize audit-related communications, internal control observations, and operational recommendations identified during the audit process.

Presentation of these reports occurred later than the City’s typical audit schedule due in part to the ongoing completion of the City’s FY 2023-24 Single Audit, a federal compliance audit related to grant expenditures. The process involved additional coordination with the County of San Mateo due to ARPA funds received through them. Staff originally intended to present all auditrelated reports together following completion of the Single Audit. However, based on Council direction to bring forward completed items as available, staff is presenting these reports at this time. The remaining Single Audit report is nearing completion and will be presented separately. 26

DISCUSSION:

Required Communications
This report is required under generally accepted auditing standards to inform governing bodies of significant accounting matters, audit results, and other required communications between the auditor and management.

The audit found no material financial misstatements, no disagreements with management, and no significant difficulties encountered during the audit process. Management corrected all identified audit adjustments, none of which were material individually or in aggregate to the financial statements.

The report also notes several accounting estimates reviewed during the audit process, including pension liabilities, OPEB liabilities, depreciation, compensated absences, and the City’s investment in the Sewer Authority Mid-Coastside (SAM).

Memorandum of Internal Control
This report addresses internal control considerations identified during the audit process and provides recommendations intended to strengthen operational efficiency and internal controls.

The auditor did not identify any material weaknesses in the City’s internal control system.

However, the report included two operational recommendations related to timely preparation and review of journal entries, and retention of documentation supporting disbursement approvals and purchasing compliance.

Staff concurred with the recommendations and has implemented procedural improvements to address the observations, including strengthened review procedures, improved documentation retention practices, and enhanced monitoring of purchasing thresholds and vendor activity.

The report also includes informational updates regarding future Governmental Accounting Standards Board (GASB) pronouncements that will become effective in upcoming fiscal years.

ATTACHMENT:

1. Required Communications for the Year Ended June 30, 2024

2. Memorandum of Internal Control for the Year Ended June 30, 2024 27 CITY OF HALF MOON BAY

REQUIRED COMMUNICATIONS

FOR THE YEAR ENDED
JUNE 30, 2024
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29 CITY OF HALF MOON BAY

REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2024
Table of Contents
Page
Required Communications ................................................................................................................................ 1 Significant Audit Matters:

Qualitative Aspects of Accounting Practices ................................................................................... 1 Difficulties Encountered in Performing the Audit ........................................................................... 2 Corrected and Uncorrected Misstatements ...................................................................................... 3 Disagreements with Management .................................................................................................... 3 Management Representations ............................................................................................................ 3 Management Consultations with Other Independent Accountants ................................................. 3 Other Audit Findings or Issues .......................................................................................................... 3 Other Matters ............................................................................................................................................ 3 30 This Page Left Intentionally Blank
31 REQUIRED COMMUNICATIONS
To the City Council of
The City of Half Moon Bay, California
We have audited the basic financial statements of the City of Half Moon Bay for the year ended June 30, 2024. We did not audit the financial statements of the Sewer Authority Mid-Coastside (SAM) as of and for the year ended June 30, 2023, related to the calculation of the Investment in SAM, which represents 51%, 52% and 17% of the assets, net position and revenues, respectively, of the business-type activities. The financial statements of SAM were audited by other auditors, whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for this entity, is based solely on the report of the other auditors.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated September 16, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies – Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year.

The following pronouncements became effective, but did not have a material effect on the financial statements:

GASB 99 – Omnibus 2022, paragraphs 4–10
GASB 100 – Accounting for Changes and Error Corrections Unusual Transactions, Controversial or Emerging Areas – We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates – Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
1 32
Estimated Fair Value of Investments: As of June 30, 2024, the City held approximately $51.4 million of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2024. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2024.

Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1 to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net OPEB liabilities and deferred outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on an actuarial study determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Investment in Sewer Authority Mid-Coastside (SAM): Management’s estimate of the Investments in SAM is disclosed in Note 6 to the financial statements and is based on the audited financial statements of the entity for the prior year fiscal year. We evaluated the key factors and assumptions used to develop the Investment in SAM in determining that it is reasonable in relation to the financial statements taken as a whole.

Disclosures – The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
2 33
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole, except for one adjustment to gross up the activity related to the refinancing of the 880 Stone Pine Loan with the County of San Mateo.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in a management representation letter dated December 3, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information. 3 34
We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Pleasant Hill, California
December 3, 2024
4 35

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

FOR THE YEAR ENDED
JUNE 30, 2024
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37 CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2024
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Other Matters ....................................................................................................................... 3 38 This Page Left Intentionally Blank
39 MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of Half Moon Bay, California
In planning and performing our audit of the basic financial statements of the City of Half Moon Bay (City) as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
December 3, 2024
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41 CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2024-01 Timely Preparation of Journal Entries
Journal entries should be prepared and reviewed in a timely manner for the period in which the entry is to be posted, in order to keep accounts up to date with the current information. Generally, journal entries should be prepared, reviewed, and approved within 30-45 days of the activity being recorded.

We selected four journal entries for testing of controls over the journal entry process and supporting documentation and noted one journal entry to record October 2023 activity was prepared and reviewed January 27, 2024, more than three months after the activity of the transaction took place.

We understand the delay in preparing and posting the journal entry was due to the City losing certain accounting staff during fiscal year 2024.

Without the timely preparation, review and approval of journal entries, there is an increased risk of unauthorized entries or errors going undetected. Also, journal entries not being posted in the correct time period increases the likelihood that interim reports may be inaccurate.

The City should develop procedures to ensure that all journal entries are prepared, reviewed, approved, and posted to the general ledger in a timely manner (generally within 30-45 days of the date of activity) and are posted in the period in which the activity occurred.

Management’s Response:

The City generally agrees with the auditor’s recommendation. Due to staffing transitions during FY 2023-24, several processes—including journal entry preparation and review—experienced temporary delays. Staff oversight and procedures has since been reestablished to ensure journal entries are prepared, reviewed, and posted within the recommended 30-45 day window. 3 42

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2024-02 Retaining Documentation of Approval of Disbursements The City’s purchasing policy indicates department heads may approve contracts for services up to $10,000, the City Manager up to $40,000, and City Council approval is required for those over $40,000.

For purchases of non-consultant services between $10,000 and $40,000, the purchasing policy requires formal written bids with a Request for Proposal or Request for Quotes, a Purchase Order Request form, quotes and a contract, with all being approved by the City Manager.

We selected 25 disbursement transactions for testing of supporting documentation and approval, and we noted that one payment for pest control maintenance services was missing the payment authorization documentation. We did note that the City made only 12 monthly payments to the vendor during fiscal year 2024 ranging from $1,300 to $1,500 each, with total payments of $16,447. In addition to not being able to locate the payment authorization for the disbursement we selected for testing, we understand the City does not have a purchase order or contract with the vendor.

We understand City staff could not locate the documentation showing approval of these services and a purchase order or contract was not used for this vendor, which is not in compliance with the purchasing policy requirements.

The City should ensure the authorization of disbursement documentation is retained for all payments and ensure the disbursement we tested was authorized by the City Manager (even after the fact). The City should also determine if a purchase order and/or contract should be in place for the vendor. In the event the City does not expect such monthly services to be subject to the purchase order and contract requirements of the purchasing policy, since they are similar to monthly utilities, the purchasing policy should be revised to clarify the requirements and any exceptions.

Management’s Response:

The City generally agrees with the auditor’s recommendation. The missing documentation noted was the result of staff turnover during FY 2023-24. Staff is currently reviewing internal procedures to ensure that documentation is consistently retained and that all disbursements are properly authorized in accordance with the City's purchasing policy. In addition, the City is implementing processes to identify vendors whose individual payments may fall below formal thresholds but exceed policy limits when aggregated over the course of the fiscal year. This will help ensure that appropriate contracts or purchase orders are in place and that such expenditures are compliant with City policy.
4 43

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

EFFECTIVE FISCAL YEAR 2024/25:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.
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CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences.

How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.

GASB 102 – Certain Risk Disclosures
State and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending.

This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.
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CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 102 – Certain Risk Disclosures, (Continued)
If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following:
• The concentration or constraint.
• Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements. • Actions taken by the government prior to the issuance of the financial statements to mitigate the risk.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.

EFFECTIVE FISCAL YEAR 2025/26:

GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

Management’s Discussion and Analysis
This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units. 7 46

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements, (Continued) Unusual or Infrequent Items
This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.

Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position
This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses.

Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.

In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.

Budgetary Comparison Information
This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.

How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.

The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources. 8 47

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements, (Continued) The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability.

The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.

The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability.

EFFECTIVE FISCAL YEAR 2026/27:

GASB 104 – Disclosure of Certain Capital Assets
State and local governments are required to provide detailed information about capital assets in notes to financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, requires certain information regarding capital assets to be presented by major class. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets.

This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with GASB Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will im-prove consistency and comparability between governments.
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49

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: ACCEPTANCE OF AUDITOR’S REPORTS FROM THE FISCAL YEAR 2024-25 AUDIT ______________________________________________________________________________ RECOMMENDATION:

Accept the Required Communications and Memorandum of Internal Control reports from the Fiscal Year 2024-25 independent auditor.

FISCAL IMPACT:

There is no fiscal impact with the acceptance of this report.

STRATEGIC ELEMENT:

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

BACKGROUND:

For the fiscal year ending June 30, 2024, the City retained Maze & Associates to perform the annual independent audit. The audit concluded with the final financial statements and the delivery of the Annual Comprehensive Financial Report (ACFR) to the City Council, which included the Independent Auditors’ Report.

In addition to the ACFR, the auditor issued the Required Communications and Memorandum of Internal Control reports for City Council acceptance. These reports summarize audit-related communications, internal control observations, and operational recommendations identified during the audit process.

Presentation of these reports occurred later than the City’s typical audit schedule due in part to the ongoing completion of the City’s FY 2024-25 Single Audit, a federal compliance audit related to grant expenditures and coordination with the County of San Mateo due to ARPA funds provided to the City through them. Staff originally intended to present all audit-related reports together following completion of the Single Audit. However, based on Council direction to bring forward completed items as available, staff is presenting these reports at this time. The 50

remaining FY 2023-24 Single Audit report is nearing completion and will be presented separately, while FY 2024-25 audit work is occurring concurrently.

DISCUSSION:

Required Communications
This report is required under generally accepted auditing standards to inform governing bodies of significant accounting matters, audit results, and other required communications between the auditor and management.

The audit found no material financial misstatements, no disagreements with management, and no significant difficulties encountered during the audit process. Management corrected all identified audit adjustments, none of which were material individually or in aggregate to the financial statements.

The report also notes several accounting estimates reviewed during the audit process, including pension liabilities, OPEB liabilities, depreciation, compensated absences, and the City’s investment in the Sewer Authority Mid-Coastside (SAM).

Memorandum of Internal Control
This report addresses internal control considerations identified during the audit process and provides recommendations intended to strengthen operational efficiency and internal controls.

The auditor did not identify any material weaknesses in the City’s internal control system.

However, the report included one operational recommendation related to the documentation of periodic reviews of accounting system access logs and administrative permissions.

Staff concurred with the recommendation and will formalize procedures to document periodic audit-log reviews and system access oversight.

The report also notes that the prior-year audit recommendations related to timely journal entries and disbursement documentation retention have been implemented.

In addition, the report includes informational updates regarding future Governmental Accounting Standards Board (GASB) pronouncements that will become effective in upcoming fiscal years.

ATTACHMENT:

1. Required Communications for the Year Ended June 30, 2025

2. Memorandum of Internal Control for the Year Ended June 30, 2025 51 CITY OF HALF MOON BAY

REQUIRED COMMUNICATIONS

FOR THE YEAR ENDED
JUNE 30, 2025
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53 CITY OF HALF MOON BAY

REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2025
Table of Contents
Page
Required Communications ................................................................................................................................ 1 Significant Audit Matters:

Qualitative Aspects of Accounting Practices ................................................................................... 1 Difficulties Encountered in Performing the Audit ........................................................................... 3 Corrected and Uncorrected Misstatements ...................................................................................... 3 Disagreements with Management .................................................................................................... 3 Management Representations ............................................................................................................ 3 Management Consultations with Other Independent Accountants ................................................. 4 Other Audit Findings or Issues .......................................................................................................... 4 Other Matters ............................................................................................................................................ 4 54 This Page Left Intentionally Blank
55 REQUIRED COMMUNICATIONS
To the City Council of
The City of Half Moon Bay, California
We have audited the basic financial statements of the City of Half Moon Bay for the year ended June 30, 2025. We did not audit the financial statements of the Sewer Authority Mid-Coastside (SAM) as of and for the year ended June 30, 2024, related to the calculation of the Investment in SAM, which represents 52%, 55% and 9% of the assets, net position and revenues, respectively, of the business-type activities. The financial statements of SAM were audited by other auditors, whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for this entity, is based solely on the report of the other auditors.

Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated September 8, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies – Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as follows:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means.

Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
1 56
This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences.

This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

The pronouncement became effective and, as disclosed in Note 7g to the financial statements, required a prior period restatement for the cumulative effect on the financial statements.

The following pronouncement became effective, but did not have a material effect on the financial statements:

GASB 102 – Certain Risk Disclosures
Unusual Transactions, Controversial or Emerging Areas – We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates – Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Estimated Fair Value of Investments: As of June 30, 2025, the City held approximately $50.2 million of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2025. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2025.

Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 1h to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1j to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.

2 57
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 8 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Asset and OPEB-Related Deferred Outflows and Inflows of Resources:

Management’s estimate of the net OPEB Asset and deferred outflows/inflows of resources are disclosed in Note 9 to the financial statements and are based on an actuarial study determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Estimated Investment in Sewer Authority Mid-Coastside (SAM): Management’s estimate of the Investments in SAM is disclosed in Note 6 to the financial statements and is based on the audited financial statements of the entity for the prior year fiscal year. We evaluated the key factors and assumptions used to develop the Investment in SAM in determining that it is reasonable in relation to the financial statements taken as a whole.

Disclosures – The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in a management representation letter dated November 20, 2025.
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Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Pleasant Hill, California
November 20, 2025
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CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

FOR THE YEAR ENDED
JUNE 30, 2025
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61 CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2025
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Other Matters ....................................................................................................................... 3 Status of Prior Year Other Matters .......................................................................................................... 7 62 This Page Left Intentionally Blank
63 MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of Half Moon Bay, California
In planning and performing our audit of the basic financial statements of the City of Half Moon Bay (City) as of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
November 20, 2025
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65 CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2025-01 Documentation of Review of System Access Logs
Good internal controls require that employees with access to the City’s assets not have access to the City’s accounting records for the same assets. In the event there is a conflict of duties, due to staff size or other factors, a review of changes or transactions should be completed by a second person and documented in some formal manner.

During our review of processes and procedures surrounding the ability to set up new users or change access to the City’s accounting software modules, we noted that the Finance Manager and Senior Management Analyst have access to those functions. Generally, that task should not be assigned to Finance personnel that process transactions in the general ledger system. To mitigate this risk, we understand the City limits the number of staff that have administrative access to the system and utilizes audit logs to ensure changes were appropriate and authorized. However, the process of reviewing the audit logs is not formalized, therefore there is no documentation of when the logs were reviewed by someone other than the person that made the changes.

The City should develop procedures to ensure that system audit logs are periodically reviewed to ensure only authorized functions have been accessed and the review should be formally documented in some manner to ensure there is an audit trail of when it was reviewed and by whom. Without such documentation, there is the potential risk of unauthorized access or changes to the system.

Management’s Response:

The City concurs with the finding. Due to limited staffing, certain administrative permissions are assigned to Finance and IT personnel, but access is restricted and audit logs are already reviewed informally. The City will formalize this process by establishing written procedures requiring periodic audit-log reviews by a designated reviewer and documenting the date and outcome of each review. These procedures will be implemented by June 30, 2026. 3 66

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

EFFECTIVE FISCAL YEAR 2025/26:

GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

Management’s Discussion and Analysis
This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.

Unusual or Infrequent Items
This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.

Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position
This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses.

Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses. 4 67

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements, (Continued) In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.

Budgetary Comparison Information
This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.

How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.

The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources.

The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability.

The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.

The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability. 5 68

CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2026/27:

GASB 104 – Disclosure of Certain Capital Assets
State and local governments are required to provide detailed information about capital assets in notes to financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, requires certain information regarding capital assets to be presented by major class. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets.

This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with GASB Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will im-prove consistency and comparability between governments.
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CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR OTHER MATTERS
2024-01 Timely Preparation of Journal Entries
Journal entries should be prepared and reviewed in a timely manner for the period in which the entry is to be posted, in order to keep accounts up to date with the current information. Generally, journal entries should be prepared, reviewed, and approved within 30-45 days of the activity being recorded.

We selected four journal entries for testing of controls over the journal entry process and supporting documentation and noted one journal entry to record October 2023 activity was prepared and reviewed January 27, 2024, more than three months after the activity of the transaction took place.

We understand the delay in preparing and posting the journal entry was due to the City losing certain accounting staff during fiscal year 2024.

Without the timely preparation, review and approval of journal entries, there is an increased risk of unauthorized entries or errors going undetected. Also, journal entries not being posted in the correct time period increases the likelihood that interim reports may be inaccurate.

The City should develop procedures to ensure that all journal entries are prepared, reviewed, approved, and posted to the general ledger in a timely manner (generally within 30-45 days of the date of activity) and are posted in the period in which the activity occurred.

Current Status:

Implemented
2024-02 Retaining Documentation of Approval of Disbursements The City’s purchasing policy indicates department heads may approve contracts for services up to $10,000, the City Manager up to $40,000, and City Council approval is required for those over $40,000.

For purchases of non-consultant services between $10,000 and $40,000, the purchasing policy requires formal written bids with a Request for Proposal or Request for Quotes, a Purchase Order Request form, quotes and a contract, with all being approved by the City Manager.

We selected 25 disbursement transactions for testing of supporting documentation and approval, and we noted that one payment for pest control maintenance services was missing the payment authorization documentation. We did note that the City made only 12 monthly payments to the vendor during fiscal year 2024 ranging from $1,300 to $1,500 each, with total payments of $16,447. However, in addition to not being able to locate the payment authorization for the disbursement we selected for testing, we understand the City does not have a purchase order or contract with the vendor.

We understand City staff could not locate the documentation showing the approval and a purchase order or contract were not used for this vendor, which is not in compliance with the purchasing policy requirements.
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CITY OF HALF MOON BAY

MEMORANDUM ON INTERNAL CONTROL

STATUS OF PRIOR YEAR OTHER MATTERS
2024-02 Retaining Documentation of Approval of Disbursements (Continued) The City should ensure the authorization of disbursement documentation is retained for all payments and ensure the disbursement we tested was authorized (even after the fact). The City should also determine if a purchase order and/or contract should be in place for the vendor. In the event the City does not expect such monthly services to be subject to the purchase order and contract requirements of the purchasing policy, since they are similar to monthly utilities, the purchasing policy should be revised to clarify the requirements and any exceptions.

Current Status:

Implemented
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim City Engineer
Mike Burnfield, Assistant Engineer

TITLE: FINAL ACCEPTANCE OF THE JOHN L. CARTER PARK IMPROVEMENTS PROJECT (CIP NO. 0611)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager or his designee to file a Notice of Completion for the John L. Carter Park Improvements Project (CIP Project No. 0611), release the project Performance and Labor and Materials Bonds, and release the retention funds in accordance with applicable laws.

FISCAL IMPACT:

The John L. Carter Park Improvements Project had a total budget of $9,045,000 funded by multiple grants, supplemented by local funds.

A funding and cost summary is provided below:

Funding Sources Expenditures to Date
State Grant 4,750,000 Construction 7,170,343
City Funds - Impact Fees 1,217,996 Design 344,316
City Funds - General Revenues 3,077,004 Other 1,284,227 9,045,000 8,798,885
Table 1 – Project Funding and Expenditure Breakdown
STRATEGIC ELEMENTS:

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

BACKGROUND:

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

Carter Memorial Park (Carter Park) as an opportunity to enhance community recreation at an 72

underutilized City park. The John L. Carter Park Improvements Project (Project) includes a new performing arts amphitheater with terraced seating, a performance stage with storage and a changing room, a picnic area, a restroom and concession stand building, park access improvements, landscaping, lighting, and utility upgrades.

On March 29th, the City Council awarded a professional services agreement to ELS Architecture and Urban Design, Inc. for an initial contract amount of $170,272 for the preparation of initial design documents for Carter Park.

On December 8, 2020, the Planning Commission approved the environmental review and adopted a Mitigated Negative Declaration (MND), along with PDP-19-059, which granted a Coastal Development Permit, Use Permit, Architectural Review, and Parking Exception for the park renovation. On March 9, 2021, the Planning Commission approved an addendum to the MND to address lighting and height discrepancies for the theatrical stage. In FY 2021-22, Assembly member Marc Berman secured $4.75 million in state funding to support the Project.

On April 19, 2022, the City Council awarded a construction contract to Wickman Development and Construction of San Francisco for $4,971,000, with a 15% contingency ($745,650).

Additionally, contracts were approved for biological monitoring and material testing services with SWCA Inc. ($35,079) and Bay Area Geotechnical Group ($115,415), respectively.

On May 2, 2023, the City Council received a project update detailing delays related to the temporary construction easement (TCE), Coastside County Water District (CCWD) service upgrades, coordination with Mariner’s Church property, and weather impacts from late 2022 and early 2023 storms, including design revisions to make the park more resilient to future flooding events. As of May 2nd, construction had yet to commence.

On June 20, 2023, the City Council adopted a resolution authorizing the City Manager to execute an agreement for the TCE and a permanent pathway easement, ensuring formal pedestrian and bicycle access from Main Street to Carter Park ($273,150).

On February 20, 2024, the City Council received another project update. Due to unforeseen circumstances, including access constraints, adverse weather, and design modifications described in prior project updates to Council noted above, the project had experienced multiple delays. In response, the City Council adopted a resolution approving the transfer of $1,250,000 from various capital projects to the Carter Park Improvement Project (CIP No. 0611).

On March 4, 2025, the City Council adopted a resolution authorizing the Administrative Services Director to transfer $1,435,000 to the Capital Improvement Project No. 0611 - John L. Carter Park Improvement Project. The funding was needed for additional design modifications, revisions to the accessible ramp connecting the upper and lower areas of the park, and to renew an expired Temporary Construction Easement with Stone Pine Shopping Center. 73

Over the course of the project, there have been a total of 83 change orders with a total project change order amount of $2,208,861. The majority of the total change order amount can be summarized into 4 categories and are as follows:
• Flood Resiliency Design Changes – A total change order amount of approximately $750,000 was attributed to design changes made to improve the flood resiliency of the park after the heavy storms in late 2022.
• Construction Delays – A total change order amount of approximately $750,000 was attributed to post-award construction delays due to inclement weather, design changes, and lack of staging, lack of survey, and construction access easements.
• Design Changes due to Errors and Omissions – A total change order amount of approximately $400,000 was attributed to design changes due to errors or omissions in the approved project plans. • Design Changes due to Existing Utility Inaccuracies – A total change order amount of approximately $300,000 was attributed to changes to utility infrastructure during construction as a result of existing utility inaccuracies.

Design revisions over the course of the project also led to a significant increase in project costs for professional design services. A total of seven (7) contract amendments with the design team led by ELS were made throughout the project’s design and construction, with a total, not-toexceed contract amount of $685,047.

DISCUSSION:

The City uses a project Final Close-out Checklist, covered under the construction contract, to confirm final and complete project delivery from the contractor. Although the Close-out Checklist is largely administrative in nature, one checklist deliverable – completion of all outstanding punchlist items, ensures that all outstanding physical improvements and construction at the site are completed to the satisfaction of the City and in conformance with construction plans.

As construction neared completion in early February 2025, the City began performing punchlist inspections of the site in concert with the design team to develop a list of final construction improvements required for acceptance. Multiple punchlists were developed over the following months as work progressed.

A Final Close-out Checklist was also issued to the contractor on July 2, 2025 with some still outstanding administrative deliverables such as issuance of as-built drawings and product manuals and warranties, as well as two minor outstanding punchlist items related to site landscaping and the amphitheater stair lights.

In late July 2025, the City granted temporary occupancy of the park and held a ribbon cutting ceremony on August 2. Meanwhile, the contractor continued to make progress on both punchlist and final closeout requirements which continued through the end of the year. By January 2026, all outstanding closeout tasks had been completed with the exception of completing the punchlist, which as that point was limited to the stair lights. 74

Discussions with the contractor regarding repairs to the stair lights continued through early April 2026. After an initial lack of responsiveness from the original electrical subcontractor and subsequent disagreement over the approved method of installation, staff determined that the best course of action was to hire a separate contractor to complete the modifications of the stair lights to both better secure them in place and simultaneously enhance the installation aesthetics.

The stair lights were completed, and a final walkthrough was done at the end of April 2026 to confirm that all outstanding punchlist and closeout items were completed. See below for images of completed improvements.

Image 1 – Stage View
Image 2 – ADA Accessible Ramp
75

Image 3 – Amphitheater Stair Lights – Final Installation The project, as contracted, is now considered complete. Staff recommends the City Council authorize the City Manager or his designee to file a Notice of Completion, release the project Performance and Labor and Materials Bonds, and release the retention funds in accordance with applicable laws.

ATTACHMENT:

Resolution
76 Resolution No. C-2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO FILE A NOTICE OF COMPLETION FOR THE JOHN L.

CARTER PARK IMPROVEMENTS PROJECT (CIP PROJECT NO. 0611), RELEASE THE PROJECT

PERFORMANCE AND LABOR AND MATERIALS BONDS, AND RELEASE THE RETENTION FUNDS

IN ACCORDANCE WITH APPLICABLE LAWS
WHEREAS, the John L. Carter Park Improvements Project developed a new amphitheater including terraced seating, a new stage with storage space and changing room, a children’s play area, picnic area, restroom and concession stand building, park access improvements, a solidarity trail, landscaping, lighting, and utility improvements; and WHEREAS, on December 8, 2020, the Planning Commission approved the environmental review, adopted a mitigated negative declaration (MND), and approved the Coastal Development Permit, Use Permit, Architectural Review, and Parking Exception for the project; and
WHEREAS, the City of Half Moon Bay, with support from Assemblymember Berman, was successful in obtaining funding through the FY 2021-22 California State Budget in the amount of $4.75 million to assist the City in constructing improvements at John L. Carter Park; and WHEREAS, on April 19, 2022, the City Council approved the award of a construction contract to Wickman Development and Construction (Wickman) of San Francisco, California, in the bid amount of $4,971,000 and a construction contingency amount of 15% or $745,650, as well as contracts for biological monitoring and material testing and inspection services from qualified professionals, SWCA Inc., in the amount of $35,079, and Bay Area Geotechnical Group, in the amount of $115,415; and
WHEREAS, on February 20, 2024, the City Council authorized the transfer of $1,250,000 from various capital project funds to the John L. Carter Park Improvements Project due to unforeseen circumstances, access constraints, adverse weather, and design modifications; and WHEREAS, on March 4, 2025, the City Council authorized the Administrative Services Director to transfer a total of $1,435,000 from the General Fund and various capital project funds to the John L. Carter Park Improvements Project (CIP No. 0611) for additional unforeseen costs associated with project delays, weather, and design revisions; and WHEREAS, in February 2025, the city staff began conducting final inspections of park improvements, issuing draft and progress punchlists to the contractor, and performing follow up inspections; and
77 WHEREAS, on August 2, 2025, staff determined that improvements had been substantially completed and, excluding minor final corrective work and administrative items, authorized temporary occupancy of the park and held a ribbon cutting ceremony; and WHEREAS, Wickman continued to make final improvements to the site and provide administrative deliverables to the City through January 2026, with the exception of repairs to the lighting improvements at the amphitheater stairs, which were withheld in protest; and WHEREAS, the City elected to hire a separate electrician to complete the repairs to the stair lighting, and by April 30th, 2026, determined that all outstanding contractual items had been completed by Wickman or others, and were accepted by the City.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager or his designee to file a Notice of Completion for the John L. Carter Park Improvements Project (CIP Project No. 0611), release the project Performance and Labor, and Materials Bonds, and release the retention funds in accordance with applicable laws. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
________________________________ _____________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 78 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: AMENDMENT TO AGREEMENT WITH MAZE & ASSOCIATES FOR INDEPENDENT

AUDITING SERVICES
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute a one-year amendment to the agreement with Maze & Associates Accountancy Corporation for independent auditing services, to extend the term of the Agreement for an additional year through April 30, 2027, and increase the compensation by $62,940 for a total not to exceed agreement amount of $325,690.

FISCAL IMPACT:

The cost for auditing services for the one-year extension is $62,940 and is included in the operating budget.

STRATEGIC ELEMENT:

This plan is consistent with the Fiscal Sustainability elements of the adopted Strategic Plan.

BACKGROUND:

In 2021 the City previously entered into a five-year agreement with Maze & Associates Accountancy Corporation for independent auditing services to support financial transparency and the preparation of the City’s Annual Comprehensive Financial Report.

Staff recommends a one-year extension to ensure continuity of services while the City prepares to issue a Request for Proposals (RFP) for future auditing services.

DISCUSSION:

An independent audit is a core component of sound financial management and is considered a best practice for public agencies. It provides assurance that the City’s financial statements are fairly presented and that appropriate internal controls are in place. 79 Maze & Associates has provided consistent and reliable auditing services to the City. The firm has extensive experience working with public agencies throughout California, bringing familiarity with applicable governmental accounting standards and reporting requirements.

To support auditor independence, Maze utilizes a rotating engagement partner approach. This helps ensure objectivity while maintaining institutional knowledge of the City’s operations.

The scope of services includes reviewing the City’s financial records and internal controls, assisting with preparation of the Annual Comprehensive Financial Report (ACFR), and supporting required state reporting. Their work helps ensure compliance with applicable standards and contributes to the transparency and accountability of the City’s financial practices.

A one-year extension allows the City to maintain continuity in these services while preparing for a future competitive procurement process.

ATTACHMENTS:

Resolution
80 RESOLUTION NO. C-2026-

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

CITY MANAGER TO EXECUTE A ONE-YEAR AMENDMENT TO THE AGREEMENT WITH MAZE & ASSOCIATES ACCOUNTANCY CORPORATION FOR INDEPENDENT AUDITING SERVICES, TO EXTEND THE TERM OF THE AGREEMENT FOR AN ADDITIONAL YEAR THROUGH APRIL 30, 2027, AND INCREASE THE COMPENSATION BY $62,940 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $325,690
WHEREAS, in 2021 the City of Half Moon Bay entered into a five-year agreement with Maze & Associates Accountancy Corporation to provide independent auditing services; and WHEREAS, the City desires to extend the agreement for an additional one-year term to ensure continuity of auditing services while preparing for a future competitive procurement process; and
WHEREAS, Maze & Associates has submitted a proposal to continue providing auditing services for the City; and
WHEREAS, the City has reviewed the scope of work and fee proposed by Maze & Associates and determined both reasonable and necessary to provide auditing services to the City.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute a one-year amendment to the agreement with Maze & Associates Accountancy Corporation for independent auditing services, extending the term of the agreement through April 30, 2027, and increasing the compensation by $62,940, for a total agreement amount not to exceed $325,690.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 81 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director Mary Huerta, Interim Human Resources Analyst
TITLE: COMPLIANCE WITH ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3

REGARDING VACANCIES, RECRUITMENT, AND RETENTION EFFORTS ______________________________________________________________________________ RECOMMENDATION:

Receive a presentation and conduct a public hearing at which the City will report on workforce vacancies, recruitment, and retention efforts.

FISCAL IMPACT:

There is no fiscal impact associated with this update.

STRATEGIC ELEMENT:

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

BACKGROUND
This report is in response to California State Assembly Bill (AB) 2561 that was approved on September 22, 2024, and added §3502.3 to the Government Code (Attachment). This law requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. The presentation must be made before the adoption of a final budget for the fiscal year. Additional obligations may apply if the vacancy rate in a bargaining unit exceeds 20%.

DISCUSSION
This report is provided in accordance with Government Code §3502.3. As stated previously, if job vacancies within a single bargaining unit reach or exceed 20% of the authorized full-time positions, the City must, at the request of recognized employee organizations, present certain information at a public hearing, including: (1) the total number of vacancies within the bargaining unit; (2) the number of applicants; (3) the average number of days to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. (Gov. Code §3502.3(c).)
82 Vacancies
The table below summarizes the City’s staffing levels from April 1, 2025 through April 30, 2026.

Vacancy rates reflect staffing levels as of April 30, 2026.

Bargaining Unit Budgeted
FTEs Filled Positions Vacancies Vacancy Rate
Local 39 17 11 6 35%
Represented Management 29 14 6 30%
Confidential 3 3 0 0%
Non-Represented
Management 6 5 1 17%
The City’s current vacancy rates were influenced in part by operational, organizational, and fiscal planning decisions made over the past year. As positions became vacant, the City evaluated whether to immediately refill positions or sequence recruitment activity while broader organizational, operational, and budget considerations were assessed. This approach was intended to avoid filling positions before long-term service delivery needs and organizational priorities were more fully evaluated.

Additionally, the staffing figures above include employees serving in interim or acting assignments. As of April 30, 2026, eleven employees or approximately one-third of the City’s workforce was serving in interim capacities across multiple departments. While these positions are reflected as “filled” for vacancy reporting purposes, the prevalence of interim assignments reflects ongoing organizational transition and recruitment sequencing during the reporting period.

It should also be noted that vacancy percentages within small organizations can appear disproportionately high because even a single vacancy may materially affect the overall percentage within a bargaining or employee group.

Additional Information Pursuant to Government Code §3502.3(c) Because vacancy rates exceeded 20% within one or more bargaining groups during the reporting period, the following additional information is provided.

Bargaining Unit Current
Vacancies
No. of
Recruitments
No. of
Applicants
Avg. Time to
Fill (Days)
Local 39 6 4 146 126
Represented Management 6 11 189 218
Confidential 0 5 18 23
Non-Represented
Management 1 3 3 317
83 Applicant pools and recruitment timelines varied significantly depending on the position classification, operational needs, and whether recruitments were actively pursued during the reporting period. In several cases, recruitment timelines were adjusted pending budget and organizational review efforts.

Operational Impacts
While the City has continued to maintain core services, vacancies have resulted in increased workload distribution across existing staff, interim and temporary assignments, shifting responsibilities, and delayed or deferred projects and initiatives in certain areas. In some cases, responsibilities were redistributed across departments and interim and temporary assignments were utilized to maintain operational continuity.

Recruitment and Retention Challenges
During the past year, the City evaluated staffing needs in conjunction with broader organizational, operational, and fiscal planning efforts. As part of this process, the City took a measured approach to certain recruitment activities while continuing to assess long-term service delivery needs and organizational priorities. Additionally, with several vacancies in the executive and represented management teams, interim assignments of existing staff has given internal candidates the opportunity to develop experience and prepare themselves for full recruitments to fill the positions permanently.

At the same time, the City continues to experience many of the broader workforce challenges affecting public agencies throughout San Mateo County and the Bay Area, including competition for qualified candidates, high housing costs, and commute constraints.

Opportunities to Improve Compensation and Working Conditions The City continues to evaluate opportunities to improve compensation and working conditions through the collective bargaining process, ongoing organizational review efforts, and broader operational planning initiatives. These efforts are intended to support long-term workforce sustainability, organizational effectiveness, operational efficiency, and continuity of core public services.

As part of the City’s ongoing organizational study process, staff input is being gathered regarding operational structure, workflows, communication, onboarding practices, technology needs, staffing alignment, role clarity, and organizational support systems. The City anticipates this process will help identify opportunities to improve operational efficiency, internal coordination, employee support resources, and long-term organizational planning across departments.

In addition, the City continues to recruit for key operational and leadership positions needed to maintain core services and organizational stability, including positions currently filled on an 84 interim basis. Since April 30, 2026, the City has filled two (2) full-time positions and continues to actively recruit for three (3) additional positions. The City also continues to evaluate recruitment and retention strategies, operational practices, training opportunities, technology improvements, and organizational support structures intended to better support employees and maintain effective service delivery.
85 BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: FISCAL YEAR 2026-27 MASTER FEE SCHEDULE
______________________________________________________________________________ RECOMMENDATION:

Conduct a public hearing and adopt a resolution adopting an updated Master Fee Schedule for Fiscal Year 2026-2027 and approving a 1.7% Consumer Price Index (CPI) adjustment to certain applicable fees.

FISCAL IMPACT:

The proposed fee adjustments are expected to result in minor increases in cost recovery revenues across applicable City services.

STRATEGIC ELEMENT:

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

BACKGROUND
As part of long-term fiscal best practices, cities are encouraged to periodically review and update user fees to ensure alignment with cost recovery goals, operational costs, and legal requirements. These reviews help ensure that fees remain reflective of the cost of providing services while maintaining consistency and transparency across departments.

In FY 2024-25, the City completed a comprehensive User Fee Study that evaluated direct and indirect service delivery costs across multiple departments, including Planning, Building, Public Works, Public Safety, and Administrative Services. The study established updated cost recovery levels and provided recommendations for the City’s broader fee structure.

As part of the User Fee Study process, staff recommended continuing the City’s practice of annually adjusting applicable fees using the San Francisco–Oakland–San Jose Consumer Price Index (CPI) in order to help fees keep pace with inflation and reduce the need for larger periodic adjustments.
86 Since completion of the study, the City has also adopted several fee updates for specific programs and facilities outside of the broader fee study process, including the Carter Park Fee Schedule approved by Council on May 19, 2026.

The proposed update applies a 1.7% CPI adjustment to applicable fees consistent with the City’s established practice. No substantive changes to the City’s fee structure or methodology are proposed as part of this update.

DISCUSSION
Comprehensive fee studies are not conducted annually and are generally most valuable following significant operational, organizational, or legal changes. In years between comprehensive studies, annual CPI adjustments help maintain alignment between adopted fees and increasing service delivery costs.

The proposed adjustments apply only to fees eligible for annual CPI-based increases. Fees subject to statutory limitations, fixed rates, recently adopted fee schedules, or otherwise excluded from CPI adjustments are not included in the proposed update.

The proposed fee adjustments are intended to partially offset increases in labor, materials, technology, and administrative costs experienced by the City. No policy changes or modifications to the underlying fee structure are proposed at this time.

The proposed Master Fee Schedule also incorporates other fees previously adopted by the Council during the Fiscal Year 2025-2026 and not being revised by the CPI adjustment, including the recently adopted Carter Park Fee Schedule.

The updated Master Fee Schedule is included as Attachment 2. If approved, the updated fees would become effective on August 2, 2026.

ATTACHMENT:

1. Resolution

2. FY 2026-27 Master Fee Schedule
87 RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ADOPTING AN UPDATED MASTER FEE SCHEDULE FOR FISCAL YEAR 2026-2027 AND APPROVING A 1.7% CPI

ADJUSTMENT TO CERTAIN APPLICABLE FEES
WHEREAS, the City of Half Moon Bay maintains a Master Fee Schedule establishing fees for various City services, permits, applications, facilities, and programs; and WHEREAS, as part of long-term fiscal best practices, the City periodically reviews and updates user fees to ensure alignment with cost recovery goals, operational costs, and legal requirements; and
WHEREAS, in FY 2024-25, the City completed a comprehensive User Fee Study evaluating direct and indirect service delivery costs across multiple departments, including Planning, Building, Public Works, Public Safety, and Administrative Services; and WHEREAS, the User Fee Study established updated cost recovery levels and provided recommendations for the City’s broader fee structure; and WHEREAS, as part of the User Fee Study process, staff recommended continuing the City’s practice of annually adjusting applicable fees using the San Francisco–Oakland–San Jose Consumer Price Index (CPI) in order to help fees keep pace with inflation and reduce the need for larger periodic adjustments; and
WHEREAS, since completion of the User Fee Study, the City has also adopted several fee updates for specific programs and facilities outside of the broader fee study process, including the Carter Park Fee Schedule approved in FY 2025-26; and WHEREAS, staff has prepared an updated Master Fee Schedule for FY 2026-2027, attached hereto as Exhibit A, that does not propose any new fees but proposes applying a 1.7% CPI adjustment to certain applicable fees consistent with the City’s established practice; and WHEREAS, no substantive changes to the City’s fee structure or methodology are proposed as part of this update and the proposed Master Fee Schedule for FY 2026-2027 shows the fees for services in a format that presents the current and proposed revised fees; and WHEREAS, the City Council conducted a duly noticed public hearing regarding the proposed fee updates in accordance with applicable law.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Half Moon Bay that the updated Master Fee Schedule for FY 2026-2027, attached hereto as Exhibit A, is hereby adopted, with the revised fees to become effective on August 2, 2026, except where otherwise required by law.
88 BE IT FURTHER RESOLVED, that for ease of reference, the Master Fee Schedule for FY 2026- 2027, attached hereto as Exhibit A, also includes previously adopted fees that are not being revised and are already in effect.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, Interim City Clerk Debbie Ruddock, Mayor 89 No. Coding Fee Unit Type FY 2025-26 FY 2026-27
1 Administrative Fees

1. First Returned Item 101-210-4901 Each [1] $ 25.00 $ 25.00

2. Each Additional Item 101-210-4901 Each [1] $ 35.00 $ 35.00

3. Credit Card Convenience Fee 101-210-4901 Surcharge on charges $30 and more [5] 2.4% 2.4% 2 1. Photocopies 101-140-4901 Per Page $ 0.10 $ 0.10

2. Municipal Code Book 101-140-4901 Per Book [2] Available online Available online

3. Bound Reports 101-140-4901 Per Report Actual Cost Actual Cost 101-210-4901 Each [2] Available online Available
online

5. Annual Comprehensive Financial Report (ACFR) 101-210-4901 Each [2] Available online Available online
3 1. Election Filing Fee 101-110-4901 Each [4] $ 25.00 $ 25.00

2. Candidate Printing Fee 101-110-4901 Deposit [3] Set by County Set by County 4 1. City Manager's Office 101-120-4901 Per Quarter Hour $ 78.00 $ 79.00

2. Finance Department 101-210-4901 Per Quarter Hour $ 74.00 $ 75.00

4. Planning Department 101-710-4901 Per Quarter Hour $ 76.00 $ 77.00

5. Building Department 101-720-4901 Per Quarter Hour $ 73.00 $ 74.00

6. Public Works Department - Engineering 101-420-4901 Per Quarter Hour $ 89.00 $ 90.00

7. Public Works Department - Maintenance 101-430-4901 Per Quarter Hour $ 56.00 $ 56.00

8. Police - Sworn 101-310-4901 Per Quarter Hour $ 80.00 $ 81.00

9. Police - Non Sworn 101-310-4901 Per Quarter Hour $ 32.00 $ 32.00 5 Private Alarm Permits (Chapter 9.10)

1. Alarm Permit 101-310-4202 Annually $ 74.00 $ 75.00

2. False Alarm Response with Permit [8]
1st & 2nd Alarms 101-310-4202 No fee No Charge No Charge 101-310-4202 Each $ 50.00 $ 50.00
101-310-4202 Each $ 100.00 $ 100.00
101-310-4202 Each $ 150.00 $ 150.00
Staff Research
3rd Alarm
4th Alarm
5th Alarm
Fee Name
Duplication
City Clerk

4. Budget
I. ADMINISTRATION
City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 90 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 6th Alarm and responses thereafter 101-310-4202 Each $ 200.00 $ 200.00

3. False Alarm Response without Permit [8]
1st & 2nd Alarms 101-310-4202 per response $ 50.00 $ 50.00 101-310-4202 per response $ 100.00 $ 100.00
101-310-4202 per response $ 150.00 $ 150.00
101-310-4202 per response $ 200.00 $ 200.00
6th Alarm and responses thereafter 101-310-4202 per response $ 250.00 $ 250.00 6 Film Permit (Chapter 9.74) [9] $ 576.00 $ 585.00
City Support Services During Filming Event 101-101-4201 Per Hour / Actual Cost Actual Cost Actual Cost Use of City Facilities 101-101-4201 Per Event per Facilities Rental Schedule
per Facilities
Rental Schedule
7 Special Event Permits [6]
Small Ceremonies (Wedding) 101-610-4204 Per Event [9] $ 224.00 $ 227.00 Minor Event: Block Parties, Fundraisers 101-610-4204 Per Event [9] $ 224.00 $ 227.00 101-610-4204 Per Event $ 2,707.00 $ 2,753.00
City Staff Support to Special Events 101-610-4204 Each Actual Cost Actual Cost 8 Per Request Actual Cost Actual Cost
9 Poplar Beach Parking [7]
Vehicles less than 20 feet 101-430-4720 Per 12 hours $ 10.00 $ 10.00 Horse trailers and vehicles longer than 20 feet 101-430-4720 Per 12 hours $ 15.00 $ 15.00 101-430-4720 12 month permit $ 165.00 $ 165.00
Nine-month Permit 101-430-4720 9 month permit $ 90.00 $ 90.00 Replacement Parking permit 101-430-4720 Each $ 30.00 $ 30.00 10 Professional Dog Walker permit Per Year $ 599.00 $ 609.00 11 Personal Dog Walker permit (3-6 dogs) Per Year $ 158.00 $ 160.00 12 Violations of Municipal Code other than building or safety provisions 1 First Violation Each $ 100.00 $ 100.00
3rd Alarm
4th Alarm
5th Alarm
Street Closure
Annual Permit
Major Event: Miscellaneous Events, Carnival/Circus, Parade, Race, Rodeo, Amusement Concession, etc.
91 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 2 Second Violation within one calendar year Each $ 200.00 $ 200.00 3 Third or subsequent violations within one calendar year Each $ 500.00 $ 500.00 13 Violations of building or safety provisions of the Municipal Code 1 First Violation Each $ 100.00 $ 100.00
2 Second Violation within one calendar year Each $ 500.00 $ 500.00 3 Third or subsequent violations within one calendar year Each $ 1,000.00 $ 1,000.00 Notes
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
0 Building Hourly Rates (minimum 2 hours) 101-720-4422 per hour $ 294.00 $ 298.00 Inspections outside of normal business hours 101-720-4422 per hour $ 294.00 $ 298.00 Inspection on Sundays and Holidays 101-720-4422 per hour $ 294.00 $ 298.00 Reinspection fees 101-720-4422 per hour $ 294.00 $ 298.00 Inspection for which no fee is specifically indicated 101-720-4422 per hour $ 294.00 $ 298.00 1 Building Permit Fee for Alterations, Additions, and New Construction (based on valuation of improvement) 101-720-4422 per permit $ 383.00 $ 389.00
valuation
101-720-4422 $ 383.00 $ 389.00
Each Additional 100 or fraction thereof 101-720-4422 $ 21.00 $ 21.00 valuation
101-720-4422 $ 707.00 $ 719.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 3.00 $ 3.00 valuation
101-720-4422 $ 796.00 $ 809.00
Valuation ($)
501 - 2,000
First 500
Film Permits, Small Ceremonies Permits, and Minor Event Permits are subject to change at a later date Poplar Beach Parking fees may be waived by the City Manager for NPDES related volunteer events Fees set by California Civil Code Ch. 522 Sec. 1719. Additional charges may apply if not paid within 30 days of the receipt of the letter. See CA Civil Code Ch. 552 Sec. 1719.

Available on-line at http://www.hmbcity.com
Total cost equal to 100% of printing, handling, translating, and mailing costs. Deposit rate set by County of San Mateo and is subject to change.

Rate is established by the California Code, Elections Code - ELEC § 10228 Fee set by City at actual cost
Special Event fees may be waived by the City Manager for NPDES related volunteer events 2,001 - 25,000
25,001 - 50,000
First 25,000
0 - 500
First 2,000
II. BUILDING [1] [2]
HMBMC 9.10.240 - False alarms emanating from alarm systems which do not have a current permit under this chapter shall pay a civil penalty of fifty dollars for each such false alarm, in addition to any other chapter required. (Ord. 7-93 §1(part), 1993). 92 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Each Additional 1,000 or fraction thereof 101-720-4422 $ 10.00 $ 10.00 50,001 - 100,000 valuation
101-720-4422 $ 1,061.00 $ 1,079.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 5.00 $ 5.00 100,001 - 500,000 valuation
First 100,000 101-720-4422 $ 1,326.00 $ 1,348.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 5.00 $ 5.00 500,001 - 1,000,000 valuation
First 500,000 101-720-4422 $ 3,537.00 $ 3,597.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 9.00 $ 9.00 1,000,001 - 2,500,000 valuation
First 1,000,000 101-720-4422 $ 8,490.00 $ 8,634.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 0.50 $ 0.50 2,500,001 - 5,000,000 valuation
First 2,500,000 101-720-4422 $ 9,375.00 $ 9,534.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 0.30 $ 0.30 5,000,001 and above valuation
First 5,000,000 101-720-4422 $ 10,259.00 $ 10,433.00
Each Additional 1,000 or fraction thereof 101-720-4422 $ 2.00 $ 2.00 2 Building Plan Check Fee 65% of Building
Permit Fee
65% of Building
Permit Fee
City Processing Fee 101-720-4422 20% of Plan
Check Fee
20% of Plan
Check Fee
Third Party Consultant per project 80% of Plan
Check Fee
80% of Plan
Check Fee

MISCELLANEOUS FEES - FLAT RATE PERMITS
3 Address Assignment
101-720-4422 per permit $ 147.00 $ 149.00
Non-Residential 101-720-4422 per hour $ 294.00 $ 298.00 4 101-720-4422 up to 2 hours $ 442.00 $ 449.00
5 Single Family Residential 101-720-4422 each $ 333.00 $ 338.00 Multifamily/Non-Residential (less than 5,000 sq. ft.) 101-720-4422 each $ 495.00 $ 503.00 Residential
Demolition
Re-Roof
First 50,000
93 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Multifamily/Non-Residential (greater than 5,000 sq. ft.) 101-720-4422 valuation See Building Valuation
See Building
Valuation
6 Solar/Photovoltaic - per GC 66015 [3]
Photovoltaic Residential System (Up to 15kW) 101-720-4422 per permit $ 450.00 $ 450.00 For each kW over 15 kW 101-720-4422 per kW $ 15.00 $ 15.00 Photovoltaic Commercial Systems (Up to 50 kW) 101-720-4422 per permit $ 697.44 $ 697.44 Between 51kW and 250kW 101-720-4422 per kW $ 0.90 $ 0.90 Photovoltaic Commercial Systems (250kW) 101-720-4422 per permit $ 836.93 $ 836.93 For each kW over 250kW 101-720-4422 per kW $ 3.35 $ 3.35

MECHANICAL, ELECTRICAL, PLUMBING PERMIT AND PLAN CHECK FEES (WHEN ASSOCIATED WITH A BUILDING PERMIT) 7 New Residential Buildings
101-720-4422
per 100 s.f. $ 23.00 $ 23.00
101-720-4422
per 100 s.f. $ 23.00 $ 23.00
8 New Non-Residential Buildings
For new non-residential buildings less than 5,000 square feet 101-720-4422 per 100 s.f. $ 23.00 $ 23.00 For new non-residential buildings greater than 5,000 square feet 101-720-4422 per 100 s.f. $ 17.00 $ 17.00

MECHANICAL, ELECTRICAL, PLUMBING PERMIT AND PLAN CHECK FEES (WHEN NOT ASSOCIATED WITH A BUILDING PERMIT) 9 Stand Alone MPE Permit
Single Item Permit from lists below, assumes 1 inspection 101-720-4422 each $ 260.00 $ 264.00 Single Item Permit, Water Heater Only 101-720-4422 $ 132.00 $ 134.00 2 - 3 items from the lists below, assumes 1 inspection required 101-720-4422 per permit $ 378.00 $ 384.00 4 - 6 items, assumes 1 inspection required 101-720-4422 per permit $ 545.00 $ 554.00 For new multifamily residential buildings (apartments and condominiums) having three or more living units, including the area of garages, carports, and other noncommercial automobile storage areas constructed at the same time, per square foot For new single and two-family residential buildings, including the area of garages, carports and other minor accessory buildings constructed at the same time, per square foot
For other types of residential occupancies and alteration, and modifications to existing residential buildings, use the UNIT FEE SCHEDULE Residential
For new non-residential buildings including the area of garages, storage rooms, mechanical rooms, utility rooms and other areas constructed at the same time, per square foot
94 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Additional Inspection Required 101-720-4422 per inspection $ 235.00 $ 238.00 Greater than 6 items - please see Valuation Tables 101-720-4422 per permit See Valuation See Valuation please see Valuation Tables 101-720-4422 per permit See Valuation See Valuation 10 Mechanical Permit Item List 101-720-4422
FAU less than 100,000 Btu/h 101-720-4422
FAU greater than 100,000 Btu/h 101-720-4422
Mechanical Alteration / Repair Minor (1 inspection assumed) 101-720-4422 Hood/Vent System 101-720-4422
11 Electrical Permit Item List
101-720-4422
Services under 600 volts, 400 amps or less 101-720-4422 Services of 600 volts or less and over 400 amperes to 1000 amperes in rating 101-720-4422 Services over 600 volts or over 1000 amperes in rating 101-720-4422 Electric Meter Reset 101-720-4422
101-720-4422
Temporary Power 101-720-4422
101-720-4422
101-720-4422
Each additional 101-720-4422
Other Minor Electrical Alteration/Repair (1 inspection assumed) 101-720-4422 12 Plumbing Permit Item List
101-720-4422
101-720-4422
Trap/Interceptor 101-720-4422
Gas Line Air Test 101-720-4422
Other Minor Plumbing Alteration/Repair (1 inspection assumed) 101-720-4422

ADDITIONAL SERVICES
13 Business License Inspection 101-720-4422 per 1/2 hr. $ 147.00 $ 149.00 14 Fee for 4th review onwards-charged on hourly basis 101-720-4422 per hour $ 294.00 $ 298.00 15 Fire Plan Check Administration Fee 101-720-4422 per 1/2 hr. $ 147.00 $ 149.00 Generator
Subpanel
Lighting Poles
First pole
Water Service
Sewer/Septic
Commercial
95 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 16 101-720-4422 valuation 16% 16%
17 Miscellaneous Plan Review 101-720-4422 per hour $ 294.00 $ 298.00 18 Permit Fees for Work Without Valid Permit (Bldg., Elec, Mech, Plmb, Encroach, Grading) Fine / Penalty 2 X Permit Fee 2 X Permit Fee 19 Permit Reactivation 101-720-4422 per permit $ 294.00 $ 298.00 20 101-720-4422 per hour $ 294.00 $ 298.00
21 Pre-Site Inspection 101-720-4422 per hour $ 294.00 $ 298.00 22 Refund (Update Refund Policy) 101-720-4422 per 1/2 hr. $ 147.00 $ 149.00 23 Replaced Job Cards 101-720-4422 each $ 73.00 $ 74.00 24 deposit
$ 294.00 $ 298.00
25 101-720-4422 each $ 294.00 $ 298.00
26 Fees for Services Otherwise not Listed 101-720-4422 per hour $ 294.00 $ 298.00 Notes
[1]
[2]
[3]
0 Public Works Hourly Rate 101-420-4442 per hour $ 357.00 $ 363.00 1 Public Improvement Plan Check Fee (including grading) [1] General Plan Fee
Transfer of Permit to New Property Owner
The General Plan fee will be applied to all residential/commercial/industrial new construction and/or addition permits. The fee will be 1% ($2.50/$1000) of the valuation of the construction/addition.

Permit fees for work done without a valid permit are 2x the applicable permit fee For photovoltaic systems, total permit fees, including applicable Permit Issuance and Filing Fees, Automation Fees, Community Planning Fees, and other mandated fees shall not exceed amounts authorized via Government Code Section 66015.

Valuation ($)
III. PUBLIC WORKS [3] [4] [5] [8] [9]
Special Structural Inspection Fee - Deposit to be determined by Public Works Director at time of application per Public Works Hourly Rate
Plan Revision
96 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 101-420-4421 Base Fee @ $10,000 $ 1,429.00 $ 1,453.00
101-420-4421 each add'l $1,000 $ 71.00 $ 72.00
101-420-4421 Base Fee @ $100,000 $ 7,862.00 $ 7,995.00
101-420-4421 each add'l $1,000 $ 59.00 $ 60.00
101-420-4421 Base Fee @ $500,000 $ 31,807.00 $ 32,347.00 101-420-4421 each add'l $1,000 $ 63.00 $ 64.00
2 Construction Inspection [1]
101-420-4421 Base Fee @ $10,000 $ 1,429.00 $ 1,453.00
101-420-4421 each add'l $1,000 $ 119.00 $ 121.00
101-420-4421 Base Fee @ $100,000 $ 12,151.00 $ 12,357.00 101-420-4421 each add'l $1,000 $ 95.00 $ 96.00
101-420-4421 Base Fee @ $500,000 $ 50,391.00 $ 51,247.00 101-420-4421 each add'l $1,000 $ 100.00 $ 101.00
3 Parcel Map (up to 4 lots)
City Admin Fee 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Consultant/Land Surveyor 101-420-4421 Actual Cost Actual Cost Actual Cost Tract Map (5 or more lots)
City Admin Fee 101-000-2302 Deposit $ 4,288.00 $ 4,360.00 Consultant/Land Surveyor 101-420-4421 Actual Cost Actual Cost Actual Cost 4 Subdivision Improvement Agreement/Legal Fee
City Admin Fee 101-000-2302 Deposit $ 5,718.00 $ 5,815.00 Consultant/Land Surveyor 101-420-4421 Actual Cost Actual Cost Actual Cost 5 Encroachment Permits Plan Review & Inspection
Spot Repair (I.e. water leaks, pothole patches) 101-420-4421 Flat Fee $ 714.00 $ 726.00 Excavation/Restoration up to 100 LF 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 each additional 50 LF 101-420-4421 Flat Fee $ 714.00 $ 726.00 Valuation ($)
$ 10,000.00
each additional $1,000 or fraction thereof
$ 100,000.00
each additional $1,000 or fraction thereof
$ 500,000.00
each additional $1,000 or fraction thereof
$ 10,000.00
$ 100,000.00
$ 500,000.00
each additional $1,000 or fraction thereof
Final Maps
each additional $1,000 or fraction thereof
each additional $1,000 or fraction thereof
97 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Curb, gutter, sidewalk, or driveway less that 100 LF 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 each additional 50 LF 101-420-4421 Flat Fee $ 714.00 $ 726.00 Sewer Drain connections, repair or extension up to 100 LF 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 each additional 50 LF 101-420-4421 Flat Fee $ 714.00 $ 726.00 Storm Drain connection, repair or extension up to 100 LF 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 each additional 50 LF 101-420-4421 Flat Fee $ 714.00 $ 726.00 Unpermitted encroachments 101-420-4421 Fine / Penalty 2 x Permit fee 2 x Permit fee Permit Time Extension 101-420-4421 Flat Fee $ 178.00 $ 181.00 6 Public Right-of-Way/Easement Encroachment (Temporary) 101-420-4421 Flat Fee $ 357.00 $ 363.00 (traffic plan review and inspection for debris box, awnings, overhead transformers, parking signs, produce signs, etc.) 7 Grading Permits Plan Review and Inspection [7][
8]
Grade changes 50 – 1,000 CY 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 Additional 100 CY over 1000 101-420-4421 Flat Fee $ 357.00 $ 363.00 8 [8]
FOG Certification - Initial 202-520-4506 Flat Fee $ 357.00 $ 363.00 FOG Certification - Annual Renewal 202-520-4506 Flat Fee $ 357.00 $ 363.00 Transfer of Uninstalled Capacity Fee 202-520-4506 Flat Fee $ 357.00 $ 363.00 Re-Inspection for Non-Compliance 202-520-4506 Flat Fee $ 357.00 $ 363.00 9 Supporting to Planning

1. Pre-Entitlement Processing
Pre-Application Review 101-000-2302 Flat Fee $ 714.00 $ 726.00

2. Coastal Development Permit Processing
Coastal Development Permit Exemption 101-420-4421 Flat Fee $ 714.00 $ 726.00 Single Family Residential 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Accessory Dwelling Unit - New Development 101-420-4421 Deposit $ 714.00 $ 726.00 Multiple Family Residential 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Commercial / Mixed Use 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Industrial / Institutional 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Other Development
Public Works Director/ City Engineer Review 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Planning Commission 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Sewer
98 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Minor Amendment 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00 Major Amendment 101-000-2302 Deposit $ 2,859.00 $ 2,907.00

3. Environmental Clearance Processing
CEQA/NEPA Environmental Clearance
Negative Declaration 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 101-000-2302 Deposit $ 2,859.00 $ 2,907.00

4. Entitlement Processing
Commercial Cannabis Business License 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 101-000-2302 Deposit $ 1,429.00 $ 1,453.00
Variance/ Exception Planning Commission 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Exception/ Community Development Director 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Zoning, LCP, and 6P Amendments
101-000-2302 Deposit $ 1,429.00 $ 1,453.00
IP/ Rezoning 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Planned Unit Development Specific Plan 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Planned Unit Development Specific Plan Amendment 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Planned Unit Development Precise Plan 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Planned Unit Development Precise Plan Amendment 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Annexation/ Prezoning 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Land Division and Merger
Certificate of Compliance 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 101-000-2302 Deposit $ 714.00 $ 726.00
Lot Line Adjustment 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Parcel Map (four or fewer lots) 101-000-2302 Deposit $ 2,859.00 $ 2,907.00 Tentative Subdivision Map 101-000-2302 Deposit $ 5,718.00 $ 5,815.00 Subdivision Agreement 101-000-2302 No Fee No Fee No Fee Time Extension 101-000-2302 Deposit $ 1,429.00 $ 1,453.00 Public Works Director Review 101-000-2302 Deposit $ 357.00 $ 363.00 10 Building Plan Review / Support

1. Minor Residential Improvement or Addition 101-420-4421 Flat Fee $ 714.00 $ 726.00

2. Tenant Improvement 101-420-4421 Flat Fee $ 714.00 $ 726.00 101-420-4421 Flat Fee $ 1,429.00 $ 1,453.00

4. New Multifamily or Non-Residential 101-420-4421 Flat Fee $ 2,144.00 $ 2,180.00 Amendments
Use Permit
LCP/ 6P
Lot Merger

3. New SFD
EIR
99 No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 11 Special Studies Review
Each $ 1,072.00 $ 1,090.00
Per Project Actual Cost Actual Cost
12 Stormwater Inspection Program

1. C.3 Treatment Inspections Flat Fee [6] $ 338.00 $ 343.00

2. C.4 Commercial/Industrial Business Inspections Flat Fee $ 169.00 $ 171.00

3. C.6 Wet Weather Construction Site Inspections (Seasonal per Site) Per Site/Per Year $ 3,550.00 $ 3,610.00

4. Reinspection/Corrective Action Due to Non-Compliance Flat Fee $ 169.00 $ 171.00 13 Fees for Services Otherwise not Listed Per Hour $ 357.00 $ 363.00 Notes
[1] Fees for external agency review or special studies may apply in addition to City fees [3] Fees are adjusted annually by the CPI All Urban Consumers/San Francisco-Oakland-San Jose established in December. [4] Additional fee
[5] Fees from
[6] Initial inspection fee assumes initial compliance. If non-compliant, reinspection/corrective action fee will apply [7] Permit fees for work done without a valid permit are 2x the applicable permit fee [8] Construction activities during October through April shall require Storm Water Pollution Prevention plans, measures and fees. [9] For deposit accounts, total cost equal to 100% of staff and/or consultant time and materials 1 1. Sewer Connection - Assessment District Participant 202-520-4506 Per dwelling unit $ 5,615.00 $ 5,615.00 Sewer Connection - Assessment District Non-Participant 202-520-4506 Each SFRE $ 19,961.00 $ 19,961.00

2. SMIP Residential* 101-000-2181 per valuation
SMIP Commercial* 101-000-2181 per valuation

3. BSRF (Bldg. Standards Admin Spec Revolving Fund)**
$1 - 25,000 101-000-2182 Valuation $ 1.00 $ 1.00
$25,001 - 50,000 101-000-2182 Valuation $ 2.00 $ 2.00
$50,001 - 75,000 101-000-2182 Valuation $ 3.00 $ 3.00
$75,001 - 100,000 101-000-2182 Valuation $ 4.00 $ 4.00
Every $25,000 or fraction above $100,000 101-000-2182 Valuation $ 1.00 $ 1.00

4. Storm Drainage 152-450-4501 Per dwelling unit $ 855.00 $ 855.00

5. Capital Outlay Facilities 301-101-4503 Per dwelling unit $ 1,212.00 $ 1,212.00

6. Traffic Mitigation 112-510-4502 Per dwelling unit $ 7,899.00 $ 7,899.00

7. Park Facilities 125-530-4504 Per dwelling unit $ 8,919.00 $ 8,919.00 2 Development Fees; Multi-Family / Commercial
Single Family
City Staff
IV. DEVELOPMENT IMPACT FEES
Consultant
100
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety)

1. Sewer Connections
Multi-Family 202-520-4506 Per dwelling unit $ 4,716.00 $ 4,716.00 Mobile Home 202-520-4506 Per dwelling unit $ 3,536.00 $ 3,536.00 202-520-4506 Per 1,000 square feet $ 1,515.00 $ 1,515.00 Commercial/Retail 202-520-4506 Per 1,000 square feet $ 2,188.00 $ 2,188.00 202-520-4506 Per room $ 2,188.00 $ 2,188.00
202-520-4506 Per 1,000 square feet $ 2,188.00 $ 2,188.00 Sewer Connection - Assessment District Non-Participant 202-520-4506 Each SFRE $ 19,961.00 $ 19,961.00 SMIP Residential (valuation exceeding $3,850) 101-000-2181 Pre 100,000 Permit Valuation $ 13.00 $ 13.00
SMIP Commercial (valuation exceeding $1,786) 101-000-2181 Pre 100,000 Permit Valuation $ 28.00 $ 28.00 SMIP Flat Fee* 101-000-2181 $ 0.50 $ 0.50

3. BSARF (Bldg. Standards Admin Spec Revolving Fund)**
$1 - 25,000 101-000-2182 Per Valuation $ 1.00 $ 1.00
$25,001 - 50,000 101-000-2182 Per Valuation $ 2.00 $ 2.00 $50,001 - 75,000 101-000-2182 Per Valuation $ 3.00 $ 3.00 $75,001 - 100,000 101-000-2182 Per Valuation $ 4.00 $ 4.00 Every $25,000 or fraction thereof above $100,000 101-000-2182 Per Valuation $ 1.00 $ 1.00

4. Storm Drainage
Multi-Family 152-450-4501 Per dwelling unit $ 338.00 $ 338.00 Mobile Home 152-450-4501 Per dwelling unit $ - $ -
152-450-4501 Per 1,000 square feet $ 721.00 $ 721.00
Commercial/Retail 152-450-4501 Per 1,000 square feet $ 521.00 $ 521.00 152-450-4501 Per room $ - $ -
152-450-4501 Per 1,000 square feet $ 360.00 $ 360.00

5. Capital Outlay
Multi-Family 301-101-4503 Per dwelling unit $ 1,011.00 $ 1,011.00 Mobile Home 301-101-4503 Per dwelling unit $ 767.00 $ 767.00 301-101-4503 Per 1,000 square feet $ 387.00 $ 387.00
Commercial/Retail 301-101-4503 Per 1,000 square feet $ 212.00 $ 212.00 301-101-4503 Per room $ 27.00 $ 27.00
301-101-4503 Per 1,000 square feet $ 193.00 $ 193.00

6. Traffic Mitigation
Multi-Family 112-510-4502 Per dwelling unit $ 4,028.00 $ 4,028.00 Mobile Home 112-510-4502 Per dwelling unit $ 4,077.00 $ 4,077.00 112-510-4502 Per 1,000 square feet $ 4,952.00 $ 4,952.00 Commercial/Retail 112-510-4502 Per 1,000 square feet $ 8,297.00 $ 8,297.00 Industrial
Office
Lodging
Industrial
Office
Lodging
Office
Lodging
Industrial

2. SMIP
Office
101
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 112-510-4502 Per room $ 2,648.00 $ 2,648.00
112-510-4502 Per 1,000 square feet $ 4,026.00 $ 4,026.00

7. Park Facility Fee
Multi-Family 125-530-4504 Per dwelling unit $ 7,432.00 $ 7,432.00 Mobile Home 125-530-4504 Per dwelling unit $ 5,648.00 $ 5,648.00 3 Development Fees - Residential Subdivision Fees Only
Park Dedication Per Chapter

17.48 of
Municipal Code
Per Chapter

17.48 of
Municipal Code
0 Planning Hourly Rate Per Hour $ 304.00 $ 309.00
1 Pre-Entitlement Processing

1. Pre-Application Review 101-000-2302 Deposit $ 2,130.00 $ 2,166.00

2. Planning Consultation 101-000-2302 Flat Fee $ 608.00 $ 618.00

3. Pre-Submittal Plan Review 101-000-2302 Flat Fee $ 608.00 $ 618.00

4. General Project Planning Services 101-000-2302 Deposit $ 913.00 $ 928.00

5. Pre-Application Commercial Cannabis Business 101-000-2302 Deposit $ 1,522.00 $ 1,547.00 Accessory Dwelling Unit (consistent with City Ordinance and State Law) 101-710-4443 ACT456 Flat Fee $ 761.00 $ 773.00
Single Allocation (per allocation) 101-710-4443
ACT456 Flat Fee $ 1,065.00 $ 1,083.00
Phasing Agreement 101-000-2302 Deposit $ 3,652.00 $ 3,714.00 2 Coastal Development Permit Processing

1. Coastal Development Permit Exemption 101-000-2302 Deposit $ 608.00 $ 618.00

2. Single Family Residential
<= 3,000 square feet 101-000-2302 Deposit $ 3,652.00 $ 3,714.00 > 3,000 square feet 101-000-2302 Deposit $ 4,566.00 $ 4,643.00

3. Accessory Dwelling Unit - New Development 101-710-4443 Deposit $ 1,826.00 $ 1,857.00

4. Multiple Family Residential
<= Four Dwelling units 101-000-2302 Deposit $ 4,566.00 $ 4,643.00 > Four dwelling units 101-000-2302 Deposit $ 6,088.00 $ 6,191.00

5. Commercial / Mixed Use
<= 10,000 square feet 101-000-2302 Deposit $ 7,610.00 $ 7,739.00 > 10,000 square feet 101-000-2302 Deposit $ 9,132.00 $ 9,287.00 Lodging
Industrial

6. Measure 'D'
V. PLANNING [1] [4]
102
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety)

6. Industrial / Institutional
<= 20,000 square feet 101-000-2302 Deposit $ 7,610.00 $ 7,739.00 > 20,000 square feet 101-000-2302 Deposit $ 9,132.00 $ 9,287.00

7. Other Development
Community Development Director 101-000-2302 Deposit $ 3,652.00 $ 3,714.00 Planning Commission 101-000-2302 Deposit $ 6,088.00 $ 6,191.00

8. Amendments
Minor Amendment 101-710-4443 Flat Fee $ 456.00 $ 463.00 Major Amendment 101-000-2302 Deposit $ 3,652.00 $ 3,714.00 3 Environmental Clearance Processing

1. CEQA/NEPA Environmental Clearance
Negative Declaration 101-000-2302 Deposit $ 7,610.00 $ 7,739.00 101-000-2302 Deposit $ 15,220.00 $ 15,478.00

2. Notice of Exemption 101-710-4443 Flat Fee $ 456.00 $ 463.00

3. Fish and Game Flat Fee Set by State of
CA
Set by State of
CA
4 Design Review Processing

1. Architectural, Landscape, and Site Plan Review 101-000-2302 Deposit $ 1,217.00 $ 1,237.00 5 Entitlement Processing

1. Home Occupation 101-710-4443 Flat Fee $ 152.00 $ 154.00

2. Commercial Cannabis Business License 101-000-2302 Deposit $ 6,088.00 $ 6,191.00 101-000-2302 Deposit $ 2,130.00 $ 2,166.00

4. Variance / Exception Planning Commission 101-000-2302 Deposit $ 1,522.00 $ 1,547.00

5. Exception and Community Development Director 101-000-2302 Deposit $ 608.00 $ 618.00

6. Zoning, LCP, and GP Amendments
101-000-2302 Deposit $ 21,308.00 $ 21,670.00
IP/Rezoning 101-000-2302 Deposit $ 21,308.00 $ 21,670.00 Planned Unit Development Specific Plan 101-000-2302 Deposit $ 21,308.00 $ 21,670.00 Planned Unit Development Specific Plan Amendment 101-000-2302 Deposit $ 12,176.00 $ 12,382.00 Planned Unit Development Precise Plan 101-000-2302 Deposit $ 12,176.00 $ 12,382.00 Planned Unit Development Precise Plan Amendment 101-000-2302 Deposit $ 5,479.00 $ 5,572.00 Annexation/Prezoning 101-000-2302 Deposit $ 21,308.00 $ 21,670.00 6 Filling Fee - Outside CA Coastal Commission (CCC) Appeals Jurisdiction 101-710-4443 Flat Fee [6] $ 608.00 $ 618.00 EIR

3. Use Permit
LCP/GP
Appeals
103
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Filling Fee - Within CA Coastal Commission (CCC) Appeals Jurisdiction No Fee no charge no charge Processing Fee - Paid by developer 101-000-2302 Deposit $ 4,566.00 $ 4,643.00 7 Land Division and Merger
Certificate of Compliance 101-000-2302 Deposit $ 2,739.00 $ 2,785.00 101-000-2302 Deposit $ 1,217.00 $ 1,237.00
Lot Line Adjustment 101-000-2302 Deposit $ 2,739.00 $ 2,785.00 Tentative Parcel Map (four or fewer lots) 101-000-2302 Deposit $ 5,479.00 $ 5,572.00 Tentative Subdivision Map 101-000-2302 Deposit $ 15,220.00 $ 15,478.00 Subdivision Agreement 101-000-2302 Deposit $ 6,088.00 $ 6,191.00 Time Extension 101-000-2302 Deposit $ 2,739.00 $ 2,785.00 8 Community Development Director Review 101-710-4443 Flat Fee $ 456.00 $ 463.00 Planning Commission Review 101-000-2302 Deposit [5] $ 2,739.00 $ 2,785.00 Exceptions Planning Commission Review 101-000-2302 Deposit $ 1,369.00 $ 1,392.00 101-000-2302 Deposit $ 2,739.00 $ 2,785.00
9 Zoning Verification - Property Information Packet Compliance Letter 101-710-4443 Flat Fee $ 608.00 $ 618.00 Public Convenience & Necessity Letter 101-710-4443 Flat Fee $ 304.00 $ 309.00 Water Transfer Letter 101-710-4443 Flat Fee $ 304.00 $ 309.00 Landlord Petition Flat Fee $ 4,566.00 $ 4,643.00
plus Hearing Officer Flat Fee [9] $ 4,227.00 $ 4,298.00 Tenant Petition Flat Fee $ 52.00 $ 52.00
plus Hearing Officer Flat Fee [9] $ 4,227.00 $ 4,298.00 10 Tree Removal Review
101-710-4443 Flat Fee $ 761.00 $ 773.00
More than 5 trees 101-000-2302 Deposit $ 1,369.00 $ 1,392.00 11 Mobile Food Vendor Permit 101-710-4443 Flat Fee $ 304.00 $ 309.00 12 Sound Amplification Permit 101-710-4442 Flat Fee $ 304.00 $ 309.00 13 Fees Required by other Agencies
up to 5 trees
Sign Programs
Other Services
Lot Merger
Sign Permit
104
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety)

1. California Department of Fish and Wildlife per agency schedule [3] Fee required to
review various
environmental
documents
Fee required to
review various
environmental
documents

2. Local Agency Formation Commission (LAFCo) per agency schedule [3] Annexation fees vary by acreage
Annexation
fees vary by
acreage

3. San Mateo County Recorder per agency schedule [3]
Fee required to
record and/or
post various
Fee required to
record and/or
post various
14 Short-Term Vacation Rental (STR) Registration
Initial Registration 101-710-4443 Flat Fee $ 304.00 $ 309.00 Annual Registration Renewal 101-710-4443 Flat Fee $ 304.00 $ 309.00 Initial Inspection 101-710-4443 Flat Fee $ 294.00 $ 298.00 15 Public Works Project Review / Support

1. Review of Public Works project applications, plans, maps, etc. Per Hour [2] $ 304.00 $ 309.00 16 Building Plan Review / Support

1. Minor Residential Improvement or Addition $ 304.00 $ 309.00

2. Tenant Improvement $ 304.00 $ 309.00
$ 456.00 $ 463.00

4. New Multifamily or Non-Residential $ 608.00 $ 618.00

5. Additions to Square Footage - Residential and Non-Residential $ 304.00 $ 309.00 17 General Plan Fee 130-710-4444 Per Permit [7] 16% 16% Notes
[1] Flat fees are adjusted annually by the CPI All Urban Consumers/San Francisco-Oakland-San Jose established in December. [2] Total cost equal to 100% of staff and/or consultant time and materials. [3] Fees charged by these agencies are available on their websites and are in addition to fees charged by the City. [4] For deposit accounts, total cost equal to 100% of staff and/or consultant time and materials [5] Planning Commission Review includes Sign Program fees [6] Minimum flat fee covers the cost of initial staff acceptance. Subsequent staff work is charged to the project applicant on a time and materials basis. [7] General Plan Fee applies to selected Planning applications fees as noted above [8] All Planning Permit Fees are subject to Technology Fee [9] Hearing Officer costs charged at actual cost to the City

3. New SFD
105
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 1 Code Enforcement Investigation and Notice of Violation [2] Property related inspections required to verify code compliance Initial Complaint per complaint $ - $ -
Preliminary Investigation per complaint $ - $ -
Initial Inspection
Violation found 101-101-4441 per inspection $ 181.00 $ 184.00 No violation found per inspection $ - $ -
Code enforcement costs incurred by the City after initial investigation and after violation notice Follow up inspection after initial inspection and notice issued 101-101-4441 per inspection $ 181.00 $ 184.00 If case has not been abated after initial/follow-up inspection 101-101-4441 per inspection $ 181.00 $ 184.00 2 Short-term Rentals Investigation and Notice of Violation Property related inspections required to verify code compliance Initial Complaint per complaint $ - $ -
Preliminary Investigation per complaint $ - $ -
Initial Inspection
Violation found 101-101-4441 per inspection $ 181.00 $ 184.00 No violation found per inspection $ - $ -
Code enforcement costs incurred by the City after initial investigation and after violation notice Follow up inspection after initial inspection and notice issued 101-101-4441 per inspection $ 181.00 $ 184.00 If case has not been abated after initial/follow-up inspection 101-101-4441 per inspection $ 181.00 $ 184.00 3 101-101-4441 hourly $ 181.00
$ 184.00
Notes
[1] HMBMC Chapter 18.06, Residential Land Use
[2] Includes FOG (Fat & Oil Grease) and Rental Registration Enforcement 1 Staff Support Fees
Per Hour $ 246.00 $ 250.00
Part-Time Per Hour $ 138.00 $ 140.00
Full-Time
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

VI. CODE ENFORCEMENT FINES/PENALITIES [1]
VII. PARKS AND RECREATION
106
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 2 Facility Rental Fees
Reservation Processing Fee Per Rental $ 82.00 $ 83.00
Set Up/Tear Down Service Fee Per Rental $ 492.00 $ 500.00

1. Carter Park
Per Hour NEW $ 100.00
Per Half Day NEW $ 450.00
Per Full Day NEW $ 800.00
Per Hour NEW $ 200.00
Per Half Day NEW $ 900.00
Per Full Day NEW $ 1,600.00
Per Hour NEW $ 250.00
Per Half Day NEW $ 1,125.00
Per Full Day NEW $ 2,000.00
Per Hour NEW $ 350.00
Per Half Day NEW $ 1,650.00
Per Full Day NEW $ 3,150.00

2. General Public Fees
Grand Oak Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 60.00 $ 60.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 125.00 $ 125.00 Security Deposit 101-000-2207 Deposit $ 500.00 $ 500.00 Oak Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 40.00 $ 40.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 100.00 $ 100.00 Security Deposit 101-000-2207 Deposit $ 300.00 $ 300.00 Manzanita Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 25.00 $ 25.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 60.00 $ 60.00 Security Deposit 101-000-2207 Deposit $ 200.00 $ 200.00 Tree Rooms
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 35.00 $ 35.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Day Rooms
Hourly Rate
Half Day (Up to 5 Hours)
Full Day (Up to 10 Hours)
Commercial / Ticketed Event
Hourly Rate
Half Day (Up to 5 Hours)
Full Day (Up to 10 Hours)
Local Non-Profit
Hourly Rate
Half Day (Up to 5 Hours)
Full Day (Up to 10 Hours)
Resident
Hourly Rate
Half Day (Up to 5 Hours)
Full Day (Up to 10 Hours)
Non-Resident
107
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 35.00 $ 35.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Sun Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 35.00 $ 35.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Ted Adcock Kitchen (Kitchen Only)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 30.00 $ 30.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 60.00 $ 60.00 Security Deposit 101-000-2207 Deposit $ 500.00 $ 500.00 Ted Adcock Kitchen (with Room Rental)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 15.00 $ 15.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 30.00 $ 30.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Train Depot
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 30.00 $ 30.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 35.00 $ 35.00 Security Deposit 101-000-2207 Deposit $ 500.00 $ 500.00 Smith Field # 3
No Lights 101-610-4710 Per Hour $ 20.00 $ 20.00
W/ Lights 101-610-4710 Per Hour $ 55.00 $ 55.00
Library Community Room (Full Room)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 25.00 $ 25.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 60.00 $ 60.00 Security Deposit 101-000-2207 Deposit $ 500.00 $ 500.00 Library Community Room (Room A)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 15.00 $ 15.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 25.00 $ 25.00 Security Deposit 101-000-2207 Deposit $ 200.00 $ 200.00 Library Community Room (Room B)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 35.00 $ 35.00 Security Deposit 101-000-2207 Deposit $ 300.00 $ 300.00

3. Non-Profit/Government Fees
Grand Oak Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 25.00 $ 25.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 50.00 $ 50.00 108
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Security Deposit 101-000-2207 Deposit $ 300.00 $ 300.00 Oak Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 15.00 $ 15.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 30.00 $ 30.00 Security Deposit 101-000-2207 Deposit $ 200.00 $ 200.00 Manzanita Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Tree Rooms
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Day Rooms
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Sun Room
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Ted Adcock Kitchen (Kitchen Only)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 15.00 $ 15.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 30.00 $ 30.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Ted Adcock Kitchen (with Room Rental)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 200.00 $ 200.00 Train Depot
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Smith Field # 3
No Lights 101-610-4710 Per Hour $ 20.00 $ 20.00
W/ Lights 101-610-4710 Per Hour $ 55.00 $ 55.00
Library Community Room (Full Room)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 109
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Library Community Room (Room A)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 Library Community Room (Room B)
Week Day Rate (9am - 5pm) 101-610-4710 Per Hour $ 10.00 $ 10.00 Weekend/Weekday Rate (after 5pm) 101-610-4710 Per Hour $ 20.00 $ 20.00 Security Deposit 101-000-2207 Deposit $ 100.00 $ 100.00 1 1. Public Safety Reports 101-310-4411 Each $ 15.00 $ 15.00

2. Photo Reproduction 101-310-4411 Each $ 25.00 $ 25.00

3. Audio Tape/CD Reproduction 101-310-4411 Per CD Disc $ 25.00 $ 25.00

4. Audio Tape Reproduction 101-310-4411 Per DVD Disc $ 25.00 $ 25.00 2 1. Bingo Establishment Processing (Chapter 3.94)
Bingo Establishment 101-310-4203 Each $ 185.00 $ 185.00 101-310-4203 Each $ 185.00 $ 185.00

2. Fortune Telling (Chapter 3.95)
New Business 101-310-4203 Each $ 889.00 $ 889.00
101-310-4203 Each $ 185.00 $ 185.00
101-310-4203 Each $ 889.00 $ 889.00
Renewal Tech. 101-310-4203 Each $ 185.00 $ 185.00

3. Massage Establishments (Chapter 3.88)
New Business 101-310-4203 Each $ 889.00 $ 889.00
101-310-4203 Each $ 185.00 $ 185.00
101-310-4203 Each $ 889.00 $ 889.00
Reinstatement 101-310-4203 Each $ 185.00 $ 185.00

4. Secondhand Dealers
New Dealers 101-310-4203 Each $ 185.00 $ 185.00
101-310-4203 Each $ 185.00 $ 185.00

5. Solicitor / Peddler
New Applicant 101-310-4203 Each $ 889.00 $ 889.00
Annual Renewal 101-310-4203 Each $ 185.00 $ 185.00
New Tech.

Renewal
Transfer
Renewal
Renewal
Renewal
Duplication
Licensing
VIII. PUBLIC SAFETY
110
No. Coding Fee Unit Type FY 2025-26 FY 2026-27 Fee Name City of Half Moon Bay
Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 3 Miscellaneous Fees
Vehicle Release 101-310-4203 Per Vehicle $ 129.00 $ 129.00 Repossession Release 101-310-4203 Per Vehicle $ 15.00 $ 15.00 Clearance/Special Letters 101-310-4203 Each $ 40.00 $ 40.00 Illegal Sign Confiscation 101-310-4203 Per Incidence $ 230.00 $ 230.00 Illegal Fireworks Confiscation 101-310-4203 Per Citation $ 230.00 $ 230.00 4 Temporary Offstreet Parking 101-310-4203 Per Vehicle $ - $ - 5 D.U.I Cost Recovery
Arrest with Traffic Collision & Transportation Per Response $ 989.00 $ 989.00 Parking Fees
111
2024
6 Citation Fee Schedule FY 2026-27
Fee
Delinquent
Fee

1. Municipal Code [1]

3.92.030 Solicitors License Required $ 50.00 $ 44.00

9.11.010 Skateboard Park Use: Pads/Helmet $ 25.00 $ 44.00

9.12.040 Consume Alcohol In Public Right Of Way

9.12.050 Alcoholic Beverages-Public Parks

9.12.070 Prohibit Fires City Beaches

9.12.080 Prohibit Fires City Parks

9.12.090 Prohibit Glass Containers City Parks And Beaches

9.13.030 Park Hours-Closed Sunset to Sunrise

9.13.050 Unlawful Activities (Designated)

9.14.010 (B) Fireworks manf/sale/possession $ 107.00 $ 47.00

9.24.020 Sleep in Vehicle 2200/0600 $ 50.00 $ 44.00

9.48.020 Discharge Firearm (City) $ 100.00 $ 47.00

9.48.060 Sale To Minor/gas weapon $ 25.00 $ 44.00

10.08.020 Direct Traffic Unauthorized Person $ 50.00 $ 44.00

10.08.030 Traffic Direction $ 50.00 $ 44.00

10.08.060 Removing Chalk Marks $ 74.00 $ 44.00

10.12.030 Obedience To Signs $ 74.00 $ 44.00

10.16.040 U-Turns to Enter Parking Spaces $ 25.00 $ 44.00

10.28.020 Clinging To Motor Vehicle $ 50.00 $ 44.00

10.28.040 Riding/Driving Sidewalk (Vehicle/Horse) $ 25.00 $ 44.00

10.28.050 Drive On New Pavement/Markings $ 25.00 $ 44.00

10.28.060 Limited Access $ 46.00 $ 47.00

10.28.080 Obey Barriers And Signs $ 25.00 $ 44.00

10.36.110 Wheels Not Curbed $ 46.00 $ 47.00

10.36.010 No Parking, Stopping, Standing $ 45.00 $ 47.00

10.36.010 (B)Poplar Beach/Time Limit Parking $ 40.00 $ 44.00

10.36.030 Parking Restricted $ 45.00 $ 47.00

10.36.040 No Parking Zone (Permits) $ 49.00 $ 47.00

10.36.050 Parked Over 72 Hours $ 49.00 $ 47.00

10.36.060 Advertising For Sale On Street $ 46.00 $ 46.00

10.36.070 Repair Vehicle On Street $ 46.00 $ 47.00

10.36.080 Washing Vehicle On Street $ 46.00 $ 47.00

10.36.090 (B)School Zone $ 49.00 $ 47.00
City of Half Moon Bay
Draft Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 112
2024
6 Citation Fee Schedule FY 2026-27
Fee
Delinquent
Fee
City of Half Moon Bay
Draft Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety)

10.36.100 (A)No Parking Posted $ 49.00 $ 47.00

10.36.100 (B)No Parking-Narrow Street $ 49.00 $ 47.00

10.36.120 Peddler Vehicle-No Permit $ 46.00 $ 47.00

10.36.130 Emergency Signs $ 80.00 $ 46.00

10.36.150 Electric Vehicle Parking Only $ 46.00 $ 47.00

10.36.160 Electric Over Two Hours $ 40.00 $ 47.00

10.37.020 Oversize Vehicle 0200-0500 $ 80.00 $ 47.00

10.37.030 Non-Motorized Vehicle Unhook $ 80.00 $ 47.00

10.40.010 15 Min Zone (Green Curb) $ 49.00 $ 47.00

10.40.020 2 Hour Zone $ 49.00 $ 47.00

10.40.030 Parking On One-Way Streets $ 49.00 $ 47.00

10.40.040 (A)Diagonal Parking Zone $ 49.00 $ 47.00

10.40.040 (B)Front Tire 6 Inches From Curb $ 49.00 $ 47.00

10.40.050 Use More Than One Space $ 49.00 $ 47.00

10.40.060 No Stopping Zone $ 49.00 $ 47.00

10.40.070 12 Hour Parking-When Posted $ 46.00 $ 44.00

10.40.080 Move Vehicle - Avoid Time Limit $ 46.00 $ 44.00

10.40.090 Store Vehicle On Street $ 46.00 $ 44.00

10.40.100 Repeat Violations $ 46.00 $ 44.00

10.40.110 Extended Parking Permits $ 46.00 $ 44.00

10.44.020 Curb Marked (Red/White/Green) $ 74.00 $ 44.00

10.44.030 No Truck/Trailer $ 71.00 $ 44.00

10.44.040 Loading Zone $ 46.00 $ 44.00

10.44.050 Passenger Loading Zone $ 46.00 $ 44.00

10.44.060 No Parking In Alley $ 46.00 $ 44.00

10.44.070 Bus Zone $ 46.00 $ 44.00

10.48.030 Vehicle Off Road $ 71.00 $ 44.00

10.50.010 No Parking After Dusk Mirada/Redondo/Poplar $ 74.00 $ 44.00

10.50.020 No Parking After Dusk Wavecrest $ 74.00 $ 44.00

12.08.040 Dumping On Street/Alley/Gutter $ 286.00 $ 44.00

12.12.030 Dumping $ 124.00 $ 44.00

2. California Vehicle Code [2]
21113 (A) Parked On Public Ground $ 43.00 $ 42.00
22500.1 Parking Prohibited $ 38.00 $ 42.00
113
2024
6 Citation Fee Schedule FY 2026-27
Fee
Delinquent
Fee
City of Half Moon Bay
Draft Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 22500 (A) Parking In Intersection $ 38.00 $ 42.00
22500 (B) Parking On Crosswalk $ 38.00 $ 42.00
22500 ( C) Parking In Safety Zone $ 38.00 $ 42.00
22500 (D) Within 15' Fire Station Driveway $ 38.00 $ 42.00 22500 (E) Parking In Driveway $ 38.00 $ 42.00
22500 (F) Parking On Sidewalk $ 38.00 $ 42.00
22500 (G) Obstruct Traffic @ Excavation $ 38.00 $ 42.00 22500 (H) Double Parking $ 38.00 $ 42.00
22500 (I) Parking In Bus Zone $ 38.00 $ 42.00
22500 (J) Parking In Tunnel $ 38.00 $ 42.00
22500 (K) Parking On Bridge $ 38.00 $ 42.00
22500 (L) Blocking Wheelchair Access $ 333.00 $ 42.00
22502 (A) Over 18" From Curb $ 33.00 $ 42.00
22502 (E) Curb Parking/One-Way Street $ 30.00 $ 42.00
22504 (A) Unincorporated Area Parking $ 43.00 $ 42.00
22505 (B) No Parking - State Hwy $ 48.00 $ 42.00
22507.8 ( A) Handicapped Space Without Placard $ 333.00 $ 42.00 22507.8 ( B) Blocking Handicapped Space $ 333.00 $ 333.00 22507.8 ( C) Hashmarks Handicap Zone $ 333.00 $ 333.00
22514 Fire Hydrants - Within 15 Feet $ 38.00 $ 38.00
22515 Unattended Vehicle - Engine Running $ 33.00 $ 33.00 22519 Posted For Patrons Only $ 33.00 $ 33.00
22522 Block Sidewalk Ramp $ 333.00 $ 333.00
22523 (A) Abandon Vehicle On Highway $ 105.00 $ 105.00
22523 A/B Abandoned Vehicle $ 105.00 $ 105.00
22523 (B) Abandon Vehicle - Private Property $ 105.00 $ 105.00 22526 (A) Blocking Intersection $ 53.00 $ 53.00
22951 Park Lot - Street & Alley $ 25.00 $ 25.00
22952 (A) Park Lot-Tow/Removal $ 40.00 $ 40.00
22952 (B) Park Lot-Tow/Removal $ 40.00 $ 40.00
23333 Stop/Park On Bridge $ 43.00 $ 43.00
23336 Violate Posted Signs $ 40.00 $ 40.00
28071 Bumper Required-Fine Or P/C $ 25.00 $ 25.00
22507.8 (A) Handicapped Space Without Placard $ 333.00 $ 333.00 114
2024
6 Citation Fee Schedule FY 2026-27
Fee
Delinquent
Fee
City of Half Moon Bay
Draft Master Fee Schedule
Other Fees, Charges & Services
Fees are increased annually by the annual average CPI-W San Francisco-Oakland-Hayward of the previous year (excluding Development Impact Fees and Public Safety) 4000 (A) Unregistered Vehicle $ 53.00 $ 53.00
4462 (B) Registration On Wrong Vehicle $ 30.00 $ 30.00
4464 Altered License Plate $ 30.00 $ 42.00
5200 Lic Plate Missing - Fine Or P/C $ 35.00 $ 35.00
5201 Plate Positioning - Fine Or P/C $ 30.00 $ 30.00
5202 Period Of Display - Fine Or P/C $ 30.00 $ 30.00
5204 (A) Tags Attach Wrong - Fine Or P/C $ 30.00 $ 30.00 Notes
[1] Citation fee amounts increase for two or more offenses. Applicable fees are stated on the violation notice. [2] California Vehicle Code Fees are established by the State of California and are not escalated by the CPI All Urban Consumers/San Francisco-Oakland-San Jose IX. REFUND POLICY
Any request for Fee refunds shall be submitted in writing to the appropriate Department’s Director within 90 days from the date of submittal. The grounds for requesting a refund shall be detailed in the written request. However, once the City has commenced work on an applicable service for which a fee is charged, no refunds are allowed. The Department’s Director shall determine if a fee is refundable based on this criterion. Any refund will be net a processing fee equivalent to 0.5 hours of the Building Hourly Rate and any other incidentals that may be incurred. The party requesting the refund shall be informed in writing of the decision of the Department’s Director within ten (10) working days of receiving the written refund request. The requesting party may appeal the determination of the Department’s Director to the City Manager, within ten (10) 115

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Leslie Lacko, Community Development Director
Ruby Zalduondo, Assistant Planner
TITLE: BALLOT MEASURE AMENDING MEASURE D, THE CITY’S VOTER-APPROVED

RESIDENTIAL GROWTH LIMITATIONS PROGRAM
______________________________________________________________________________ RECOMMENDATION:

1. Adopt a resolution approving a proposed Ordinance to amend the City’s Local Coastal Land Use Plan, Policy 2-16, and Half Moon Bay Municipal Code, Title 17 (Subdivisions), sections 17.06.020(E) and 17.06.065 and Title 18 (Zoning), section 18.04.010(E) and other conforming edits to amend the Measure D “Downtown Area” to be the area designated as the Town Center in Figure 2-2 of the Local Coastal Land Use Plan; and placing a measure on the November 3, 2026 general election ballot, seeking voter approval of the proposed Ordinance to amend the Measure D Downtown Area.

2. Find the amendments exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA,” and 14 Cal. Code Regs. Sections 15000 et seq., “CEQA Guidelines”), under CEQA Guidelines section 15265 (adoption of coastal plans and programs).

3. Discuss and determine if the City Council wishes to submit an argument in favor of the proposed ballot measure, and if so, which Councilmember(s) would write it.

FISCAL IMPACT:

There will be a cost of approximately $10,000 associated with placing this Measure on the ballot for the November 3, 2026 election.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment and Inclusive Governance elements of the Strategic Plan.
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BACKGROUND:

On January 13, 2026, the City Council directed staff to bring forward a ballot measure to amend the Measure D Downtown Area map, for review and possible placement on the November 3, 2026, ballot.

The City Council is required to approve the placement of a measure on the ballot by resolution following a duly noticed public hearing. To meet statutory timelines for the November 3, 2026, general election, the City Council would need to hold the hearing to adopt a resolution for this Measure prior to the deadline for filing a City-led initiative with the County.

Measure D
Measure D is a voter-approved residential growth limitations program for the City of Half Moon Bay, which was adopted by voters in 1999. Measure D replaced Measure A, a prior growth management measure which was adopted by voters in 1991. Measure D went into effect in 2009 following California Coastal Commission certification as an amendment to the 1993 Local Coastal Land Use Plan (LCLUP). Measure D reduced the residential growth cap previously allowed by Measure A from 3% to a maximum 1.5% population increase. Measure D accommodates 1% population growth annually, which is split between “Downtown” and “Outside of Downtown” areas. The “Downtown Area” is currently defined as the Half Moon Bay Redevelopment Survey Area adopted in November 1998 (Figure 1 below), and within this area the number of dwelling units may be increased by another 0.5% at the discretion of the City Council. The original Measure D authors have acknowledged that the redevelopment survey area was chosen as it was a reasonable approximation of the downtown focus area envisioned in 2001. The full text of Measure D is included as Attachment 3.

At the request of City Council, staff presented a draft Accessory Dwelling Unit (ADU) and Affordable Housing Ballot Measure to the Planning Commission on June 11 (Agenda) and June 25, 2024, (Agenda) comprised of a measure to exempt ADUs and deed restricted affordable units from Measure D, and to adopt the Town Center Map (Figure 2-2) of the LCLUP (Figure 2 below) as the designated Downtown Area under Measure D. At the Planning Commission meeting on June 25, 2024, the Commission recommended that the Council consider placing a measure on the ballot amending only the Downtown Area map associated with Measure D to align with the Town Center Map within the LCLUP. On July 16, 2024, (Agenda) City Council decided not to place any Measure D amendment on the ballot.

General Plan and 2020 Local Coastal Land Use Plan Update The City’s Local Coastal Land Use Plan (LCLUP) serves as its General Plan land use element. The 2020 LCLUP Update established affordable housing as a Local Priority Use, which is also reflected in the City’s 2023 – 2031 Housing Element. The requirements of Measure D were incorporated into the LCLUP and is one policy component of the LCLUP that seeks to promote 117

housing, especially affordable housing, in the Downtown Area — a high resource area, which promotes decreasing patterns of housing segregation while balancing protection of open space and coastal resources.

The LCLUP “identifies a Town Center within which future development should be concentrated to support a vibrant, walkable core area...” City Council requested that this defined area (isolated in Figure 3 below for clarity) be utilized as the “Downtown Area” under Measure D.

Based on Staff’s analysis, the proposed amendments to the provisions of Measure D are consistent with the Local Coastal Land Use Plan, including as it relates to infill, affordable housing, and local coastal priorities. The existing provisions of Measure D aim to prioritize infill within the Downtown Area, which is consistent with LCLUP policies to concentrate development, especially infill within the Town Center. Additionally, the proposed amendments are consistent with the Circulation Element specifically as it relates to the goals of supporting pedestrian and bicycle travel, by concentrating development and infill within the Town Center.

On January 13, 2026, the City Council directed staff to bring forward a ballot measure to amend the Measure D Downtown Area map, for review and possible placement on the November 3, 2026, ballot.

On May 12, 2026 (Agenda), staff presented the proposed Ordinance to the Planning Commission (note that only three Planning Commissioners participated in the consideration of the item). The Planning Commissioners expressed mixed opinions on the proposed Measure.

One Commissioner argued in support of the Measure, expressing that the current downtown map is outdated, was originally adopted largely for convenience, and should be replaced with the LCLUP Town Center map because it better reflects the city’s long-term planning vision, encourages walkable infill development, and aligns with existing planning documents. The two Commissioners against the Measure argued that the proposed Town Center boundary included areas that are not true infill, could benefit large developers, and failed to address community concerns with Measure D. More generally, the Commissioners discussed that ADUs should potentially be exempt from Measure D allocations, allocation transfer timelines should be shortened, large projects should not consume a disproportionate share of allocations, and that future map changes should prioritize existing residential areas while protecting prime agricultural land. The Commissioners voted to not recommend the proposed Measure to the City Council. Instead, the Commission approved a second motion to direct staff to draft a summary of the Planning Commission's discussion of the proposed Measure and present it to City Council (Attachment 4).

DISCUSSION:

Proposed Downtown Area Modification
As directed by the City Council on January 13, 2026, this proposed ballot Measure would amend the designated “Downtown Area” of Measure D to align with the Town Center area shown on 118

Figure 2-2 of the City’s existing LCLUP. This would require text amendments to both the LCLUP and the City’s Municipal Code.

If approved by the voters, the ballot Measure would change the map used to designate the number of allocations in the Downtown Area from the Downtown Half Moon Bay Redevelopment Survey Area adopted by the City in 1998 (City Resolution No. C-91-98, November 3, 1998), to the Town Center Map in the Local Coastal Land Use Plan adopted by the City in 2020. The specific amendments would:
• Amend Policy 2-16f of the Local Coastal Land Use Plan (LCLUP) to adopt the Town Center Map (Figure 2-2) as the designated “downtown area”; and • Amend Half Moon Bay Municipal Code Section 17.06.020(E) to designate the Town Center (Figure 2-2 of the LCLUP) as the designated “downtown area”; and • Amend Half Moon Bay Municipal Code Section 17.06.065 to designate the Town Center (Figure 2-2 of the LCLUP) as the designated “downtown area”; and • Amend Half Moon Bay Municipal Code Section 18.04.010(E) to designate the Town Center (Figure 2-2 of the LCLUP) as the designated “downtown area”.

Currently the Downtown Area of Measure D is based on the 1998 Redevelopment Survey Area.

The Town Center map is a more accurate and current representation of what the community perceives as downtown. It consists of a more pedestrian friendly, walkable, core area and encourages infill development within the area. The Town Center incorporates key neighborhoods including the South Downtown and portions of the Heritage Downtown which were excluded from the map based on the redevelopment survey. Thus, the Town Center map would continue to align with the intent of the authors of Measure D to support compact downtown development and would create consistency between the provisions of Measure D with the LCLUP. Measure D currently allows for an additional 0.5% population growth annually, at the discretion of the City Council. The proposed amendments would expand the area covered by the downtown designation within Measure D to be applicable to more infill properties and support compact downtown development. The differences between the existing Measure D downtown designation from the 1998 Redevelopment Survey and the Town Center Map, Figure 2-2 of LCLUP, can be seen in Figure 4 below.
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Figure 1. 1998 Half Moon Bay Redevelopment Survey Area. The shaded area indicates the existing Downtown Area. Figure 2. Local Coastal Land Use Plan Figure 2-2: Town Center. 120

To review the potential impacts of amending the map, staff analyzed the locations of applications for Measure D from previous years. Based on Measure D applications from 2022 through 2026 and considering the differences between the boundaries of the current Measure D Downtown Area to the boundaries of the Town Center, 20 allocations applied for outside of the downtown area would have fallen within the boundaries of the Town Center designation. Conversely, 3 allocations within the existing downtown designation would have been outside of the downtown boundaries based on the Town Center map. Based on this information, this would have opened up allocation availability outside of downtown. However, this would also have increased the amount of competition within the Downtown Area which, in recent years, all or nearly all allocations have been allocated to a few larger affordable housing projects. 491 total parcels would be affected by the map change, either being added to or subtracted from the mapped Downtown Area. Of those 491 parcels, 326 are residential (R-1, R-2, R-3). Of those Figure 4. Pink outline indicates areas that are not included in the Town Center map and would be subtracted from the “Downtown Area”. Green outline indicates areas that
would be added to the “Downtown Area”.

Figure 3. The Town Center outline as seen in Figure 2-2 of the Local Coastal Land Use Plan. Provided in addition to Figure 2 for clarity.
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326 residential parcels, 286 would be added to the Downtown Area and 40 would be subtracted. 55 acres of non-residential land (mostly PUD) would be removed from the Downtown Area.

Ahead of the May 12, 2026, Planning Commission Meeting and the June 2, 2026, City Council Meeting, property owners whose potential property rights would be impacted by being added or removed from the Measure D Downtown Area were notified directly via mailing notice.

Proposed Amendments:

The proposed amendments would be to both the Local Coastal Land Use Plan (Policy 2-16f) and Municipal Code sections 17.06.020(E), 17.06.065, and 18.04.010(E). The draft measure is Exhibit A to the Resolution (Attachment 1 to this staff report). It includes strikethroughs (deletions) and bold underlines (insertions) showing proposed changes to the LCLUP and Municipal Code. In consideration of the proposed LCLUP amendments, conforming edits are required to promote internal consistency.

The Measure’s proposed amendments are as follows:

Half Moon Bay Local Coastal Land Use Plan (LCLUP) Proposed Amendment 2-16. Residential Growth Management. Provide for compatible and orderly residential growth at a managed pace and ensure that future development is consistent with the city’s growth management standards. Measure D (Residential Growth Limitation Ordinance) and a voter-approved amendment to Measure D added the following provisions to the Land Use Plan and they may not be amended or repealed except by a majority vote of the people of Half Moon Bay as follows:
f. The Downtown Area is the area designated as the Town Center in Figure 2-2 of this Local Coastal Land Use Plan. the area designated as the Downtown Half Moon Bay Redevelopment Survey Area in City Resolution No. C-91-98, November 3, 1998.

Half Moon Bay Municipal Code Proposed Amendments to Title 17 (Subdivisions) and Title 18 (Zoning)

17.06.020 Establishment of number of residential dwelling unit allocations to be authorized annually.

E. The "downtown area" is the area designated as the Town Center in Figure 2-2 of the Half Moon Bay Local Coastal Land Use Plan. Downtown Half Moon Bay redevelopment survey area in the city Resolution No. C-91-98, November 3, 1998. A copy of the map follows this section (Figure 1).

17.06.065 Priority established for residential development projects based on proximity. 122

Except as otherwise provided for in this title or as a result of city council approval of a development phasing plan and agreement, priority shall be established for projects located within the boundaries of the downtown area designated in Measure D as the Town Center in Figure 2-2 of the Half Moon Bay Local Coastal Land Use Plan. Downtown Half Moon Bay redevelopment survey area and adopted by city council Resolution No. C-91-98 November 3, 1998. As provided in Section 17.06.020, the number of residential dwelling unit allocations allowed within the downtown area may be twice the number of allocations outside of the boundaries of the downtown area.

18.04.010 Maximum number of new dwellings.

E. The “downtown area” is the area designated as the Town Center in Figure 2- 2 of the Half Moon Bay Local Coastal Land Use Plan. the Downtown Half Moon Bay redevelopment survey area in city Resolution No. C-91-98, November 3, 1998, which is incorporated herein by this reference.*
* Editor’s note: The Half Moon Bay Redevelopment Survey Area Map is incorporated into this code at Section 17.06.020.

Conforming Amendments to Half Moon Bay Local Coastal Land Use Plan.

To the List of Figures in the Table of Contents add the following bold underline text:

Figure 1-7: 1999 Measure D Downtown Area
To the Changed Land Use Circumstances discussion on page 1-26, add the following bold underline text after the first paragraph:

In 2026, City voters passed an amendment to Measure D that redefined the “Downtown Area” to be the area designated as the Town Center in Figure 2-2 of this Plan.

To the title of Figure 1-7 on page 1-27, add the following bold underline text:

FIGURE 1-7. 1999 MEASURE D DOWNTOWN AREA
To the text box next to Figure 1-7 on page 1-27 add the following bold underline text:

A voter-approved amendment to Measure D in 2026 redefined the downtown area to be the area designated as the Town Center in Figure 2-2 of this Plan.

To the Growth Management discussion on page 2-15, make the following changes:
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As discussed in Chapter 1, Measure D was passed in 1999 to control the pace of residential development in Half Moon Bay and to reduce pressure on public infrastructure systems including water, sewer, and traffic. Measure D incentivizes development in a defined Downtown Area, which overlaps with but differs from is the boundary of the Town Center emphasized in this Plan, by providing additional allocations each year in this area. To further support this measure, LUP policies address the impacts of residential development through growth management strategies including lot retirement, lot mergers, and transfer of development rights. The intent of these policies is to concentrate development in existing developed areas, specifically the Town Center, while limiting development in areas where coastal resources, environmental hazards, and public infrastructure constraints are present.

If approved by the voters, these amendments to the LCLUP require certification by the Coastal Commission before they take effect.

Staff has prepared the Resolution (Attachment 1) to place a Measure on the November 3, 2026, general election ballot to seek approval of the proposed Ordinance. The Resolution includes, among other things, the ballot question to be submitted to the voters as well as the requirements for the form, vote, synopsis, impartial analysis, arguments, and other procedural requirements.

With regard to the ballot arguments, Elections Code section 9282(b) authorizes the Council or a member or members of the Council to write an argument in support of the Measure. If the Council desires to write an argument in support of the Measure the Council can specify those member(s) to write the argument on behalf of the Council, as part of the deliberations.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) STATUS:

The adoption and implementation of the proposed Ordinance is statutorily exempt from the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA,” and 14 Cal. Code Regs. Sections 15000 et seq., “CEQA Guidelines”), under CEQA Guidelines section 15265 (adoption of coastal plans and programs).

NEXT STEPS:

If approved by the Council, the Resolution would set the proposed Measure before the voters in the November 3, 2026, general election. If adopted by the voters, it would then be forwarded to the California Coastal Commission for certification.

ATTACHMENTS:

1. Resolution Setting a Measure on the Ballot to Amend Measure D

2. City of Half Moon Bay Measure to Amend the Downtown Area for Residential Growth Management Policies

3. Measure D 1999 – Full Text

4. Discussion Summary — Planning Commission Item 6C, May 12, 2026 124
Resolution No. ___

A RESOLUTION OF THE COUNCIL OF THE CITY OF HALF MOON BAY APPROVING A PROPOSED ORDINANCE TO AMEND THE CITY’S LOCAL COASTAL LAND USE PLAN, POLICY 2-16, AND HALF MOON BAY MUNICIPAL CODE, TITLE 17 (SUBDIVISIONS), SECTIONS 17.06.020(E) AND

17.06.065 AND TITLE 18 (ZONING), SECTION 18.04.010(E) AND OTHER CONFORMING EDITS TO AMEND THE MEASURE D “DOWNTOWN AREA” TO BE THE AREA DESIGNATED AS THE TOWN CENTER IN FIGURE 2-2 OF THE LOCAL COASTAL LAND USE PLAN; AND PLACING A MEASURE ON THE NOVEMBER 3, 2026 GENERAL ELECTION BALLOT SEEKING VOTER APPROVAL OF THE

PROPOSED ORDINANCE TO AMEND THE MEASURE D DOWNTOWN AREA AND AUTHORIZING RELATED ACTIONS; AND FINDING THE AMENDMENTS EXEMPT FROM REVIEW UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15265 (ADOPTION OF COASTAL PLANS AND PROGRAMS)
WHEREAS, The purposes of Measure D are to protect the public health, safety and welfare of residents of Half Moon Bay; to provide for development that is orderly, sustainable, and fiscally responsible; to respond to the worsening traffic situation; and to protect the City's unique scenic and rural coastal character by managing the rate, location and density of residential development; and
WHEREAS, Measure D encourages compact development by allowing additional allocations to be offered to the Downtown Area upon approval by the City Council; and WHEREAS, the Downtown Area is currently defined as the Half Moon Bay redevelopment survey area adopted by the City Council in November 1998; and WHEREAS, original Measure authors have acknowledged that the redevelopment survey area was chosen primarily due to being the best available reasonable approximation of the downtown focus area in 2001; and
WHEREAS, the 2020 Local Coastal Land Use Plan (LCLUP) “identifies a Town Center within which future development should be concentrated to support a vibrant, walkable core area”. It was recommended by the City Council that this defined area be utilized as the “Downtown Area” under Measure D; and
WHEREAS, on January 13, 2026, the City Council directed staff to prepare a ballot measure to allow voters of Half Moon Bay to decide on an amendment to Measure D Downtown Area map on the November 3, 2026, general election; and WHEREAS, the proposed Measure (Exhibit A) includes the necessary amendments of the 2020 LCLUP and Subdivision and Zoning Code Amendments to adopt the Town Center (Figure 2- 2 of the LCLUP) as the Downtown Area under Measure D; and WHEREAS, Measure D added its residential growth limitations to both the LCLUP and 125
Zoning and the proposed measure would amend both of these provisions, with the Zoning amendments being consistent with the LCLUP, as amended; and WHEREAS, the proposed Measure will not change the location, density or intensity of development permitted under the 2020 LCLUP or the General Plan including the 2023 - 2031 Housing Element; and
WHEREAS, on June 2, 2026, the City Council adopted Resolution No. 2026- _, calling a general municipal election on November 3, 2026, and adopted Resolution No. 2026-_ , requesting that the Board of Supervisors of the County of San Mateo consolidate the City’s general municipal election with the statewide general election to be held on the same date; and
WHEREAS, the Half Moon Bay City Council is authorized by California Elections Code Section 9222 to submit to the voters propositions for the enactment or amendment of any ordinance, including tax measures; and
WHEREAS, if approved by the voters, the amendments will be subject to review by the California Coastal Commission and the proposed Ordinance would not become effective until certified by the California Coastal Commission.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Half Moon Bay that the Council does resolve, declare, determine and order as follows:

SECTION 1. Proposed Ordinance. The City Council hereby approves the submission of the proposed Ordinance, as set forth in the form attached hereto as Exhibit A, to the voters of the City of Half Moon Bay at the November 3, 2026, general municipal election. The full text of the proposed Ordinance, as set forth in Exhibit A, is to be submitted to the voters.

SECTION 2. CEQA. The City Council hereby finds the adoption of the proposed Ordinance is categorically exempt from the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA,” and 14 Cal. Code Regs. Sections 15000 et seq., “CEQA Guidelines”), under CEQA Guidelines section 15265 (adoption of coastal plans and programs).

SECTION 3. Ballot Measure.
(a) Pursuant to its right and authority does order that the following measure be placed on the ballot on the November 3, 2026, general municipal election ballot seeking voter approval of the Measure to Amend the Downtown Area for Residential Growth Management Policies to amend the Measure D, the “Downtown Area” to be the area designated as the Town Center Map in Figure 2-2 of the LCLUP for the purpose of submitting the following question to the voters:
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Shall the Measure, amending the City of Half Moon Bay Local Coastal Land Use Plan, Title 17 (Subdivisions) and Title 18 (Zoning) of the Half Moon Bay Municipal Code, and other conforming edits so that the Measure D “Downtown Area” is redefined as the area designated as the “Town Center” (Figure 2-2) of the Local Coastal Land Use Plan, be adopted?
YES
NO
(b) As the City Council by Resolution No. 2026-___, requested that the County of San Mateo Board of Supervisors consolidate the City’s general municipal election with the statewide general election to be held on November 3, 2026, pursuant to the requirements of Elections Code Section 10403, the City Council hereby requests that the County of San Mateo Board of Supervisors authorize the submission of this ballot measure to the voters of the City of Half Moon Bay in the consolidated municipal and statewide election to be held on November 3, 2026.

SECTION 4. Vote Requirement. That the vote requirement for the Measure to pass is a majority (50%+1) of the votes cast.

SECTION 5. Form of Ballots. That the ballots to be used at the election shall be in a form and content as required by law. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 6. Notice. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. Synopsis of Measure. The City Clerk is hereby directed to publish a synopsis of the ballot Measure in an official newspaper of general circulation as required by Elections Code Section 12111 at least one week before the November 3, 2026 election.

SECTION 8. Impartial Analysis. That the City Council directs the City Clerk to transmit a copy of the Measure to the Office of the City Attorney. The Office of the City Attorney shall prepare an impartial analysis of the Measure showing the effect of the Measure on the existing law and the operation of the Measure. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the city. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following:
“The above statement is an impartial analysis of Ordinance or Measure __. If you desire a copy of the ordinance or measure, please call the election official’s office at (insert phone number) 127
and a copy will be mailed at no cost to you.” The impartial analysis shall be filed with the City Clerk.

SECTION 9. Certification of Passage. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

SECTION 10. Submission to County Officials. That the City Clerk is directed to file a certified copy of this Resolution, with Exhibits, with the County of San Mateo Board of Supervisors and the County Elections Official no later than close of business on August 7, 2026.

SECTION 11. Arguments. Pursuant to Elections Code § 9281, qualified voters may submit arguments for and against the ballot measures, in addition to rebuttal arguments, for the November 3, 2026, General Municipal Election on forms provided by the City Clerk. Arguments filed in accordance with this Resolution must comply with the following requirements in accordance with Elections Code § 9280 et seq., including but not limited to:

A. Arguments must be in writing and not exceed three hundred (300) words except for rebuttal arguments which may not exceed two hundred and fifty (250) words; B. Arguments may be submitted by the City Council; any councilmember(s) authorized to submit an argument by the City Council; any individual voter eligible to vote on the Measure; any bona fide association of citizens; or any combination of voters and associations;
C. Arguments must be typewritten in at least a 12-point font; D. Arguments may not include underlining, italics, asterisks, or other, similar, type of formatting;
E. The author or a majority of the authors of an argument relating to the Measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument.

F. Arguments must be accompanied by the printed name and signature or printed names and signatures of the person or persons submitting it, or, if submitted on behalf of an organization, the name of the organization and the printed name and signature of at least one of its principal officers.

G. If more than five (5) signatures accompany an argument, only the first five (5) will be printed.

H. Arguments for or against the ballot measures must be received in the City Clerk’s office not later than 14 days after the City Council calls for an election. Rebuttal 128
arguments must be received not later than 10 days after the Arguments submittal deadline. Arguments may be changed or withdrawn by their proponents until and including the date fixed by the City Clerk during the normal business hours of the City Clerk’s office, as posted.

I. If more than one argument for or more than one argument against the Measure is submitted to the City Clerk within the time prescribed, she shall select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters in accordance with Elections Code section 9287.

Section 12. Severability. If any section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid and/or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each section or subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 13. Lawful Election. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections, including, without limitation, Elections Code Section 10418.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ ______________________
Maggie Rodriguez, Interim City Clerk Mayor Debbie Ruddock 129
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx City of Half Moon Bay Measure to Amend the Measure D “Downtown Area”

CITY OF HALF MOON BAY
ORDINANCE NO. ____________

AN ORDINANCE OF THE CITY OF HALF MOON BAY AMENDING THE HALF MOON BAY LOCAL COASTAL LAND USE PLAN, POLICY 2-16, AND HALF MOON BAY MUNICIPAL CODE, TITLE 17 (SUBDIVISIONS), SECTIONS 17.06.020(E) AND

17.06.065 AND TITLE 18 (ZONING), SECTION 18.04.010(E) AND OTHER CONFORMING EDITS TO AMEND THE MEASURE D “DOWNTOWN AREA” TO

AMEND THE MEASURE D DOWNTOWN AREA TO BE THE AREA DESIGNATED AS THE TOWN CENTER IN FIGURE 2-2 OF THE LOCAL COASTAL LAND USE PLAN THE PEOPLE OF THE CITY OF HALF MOON BAY DO ORDAIN AS FOLLOWS: :

SECTION 1. PURPOSE AND FINDINGS.

A. Measure D, approved by the voters in 1999, limits the number of residential units that can be built annually.

B. Measure D incentivizes development in a "Downtown Area," but the current boundaries are inconsistent with the City's adopted “Town Center,” which is included in the City’s adopted Local Coastal Land Use Plan, and retaining this inconsistency reduces opportunities for infill development in areas encouraged by City for development.

C. The purpose of this Ordinance is to align the Measure D "Downtown Area" with the City's Town Center boundaries as depicted in Attachment A to this Ordinance, which includes neighborhoods traditionally considered a part of the downtown.

SECTION 2. AMENDMENTS TO HALF MOON BAY LOCAL COASTAL LAND USE PLAN.

The Half Moon Bay Local Coastal Land Use Plan is hereby amended as shown below.

Text in strikethrough (example) is deleted and text in bold underline (example) is added.

Text in standard font is not amended by this Ordinance. Figure 2-2, referenced in these amendments, is included as Attachment A to this Ordinance. The Downtown Half Moon Bay Redevelopment Survey Area, referenced in the amended provision, is included as Attachment B to this Ordinance.
“2-16. Residential Growth Management. Provide for compatible and orderly residential growth at a managed pace and ensure that future development is consistent with the city’s growth management standards.

Measure D (Residential Growth Limitation Ordinance) and a voterapproved amendment to Measure D added the following provisions to the Land Use Plan and they may not be amended or repealed except by a majority vote of the people.
a. The number of dwelling units which the City may authorize each calendar 130
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx year may not exceed the number of units which would result in a growth of 1 percent in the City’s population as of January 1 of that year. In determining the number of permissible units, the City shall use the most recent United States Census figures for Half Moon Bay to calculate the average number of persons per household.
b. The number of dwelling units authorized each year under subsection a. may be increased by 50 percent for additional dwelling units in the Downtown Area.
c. Applications for new units from areas of the City outside the Downtown Area have priority for one-half of the units authorized under subsection a. If fewer applications are received, the remainder of these units may be authorized in the Downtown Area.
d. Subject to subsections b. and c., the city shall allocate permissible dwelling units among applications under the existing allocation system in the Municipal Code, to the extent feasible, and subsequent modifications by the City Council.
e. The limitations in the Section shall not apply to replacement of existing dwelling units on a one-for-one basis, nor shall it apply to density bonuses for the provision of low and moderate income housing to the extent required by State law.
f. The Downtown Area is the area designated as the Town Center in Figure 2-2 of this Local Coastal Land Use Plan. the area designated as the Downtown Half Moon Bay Redevelopment Survey Area in City Resolution No. C-91-98, November 3, 1998.”
SECTION 3. AMENDMENTS TO THE HALF MOON BAY SUBDIVISIONS (TITLE 17) AND ZONING (TITLE 18) CODE.

The City of Half Moon Bay Municipal Code is hereby amended as shown below.

Text in strikethrough (example) is deleted and text in bold underline (example) is added.

Text in standard font is not amended by this Ordinance. Figure 2-2, referenced in these amendments, is included as Attachment A to this Ordinance. The Downtown Half Moon Bay Redevelopment Survey Area, referenced in the amended provision, is included as Attachment B to this Ordinance.

A. Half Moon Bay Municipal Code section 17.06.020, “Establishment of number of residential dwelling unit allocations to be authorized annually,” within Title 17 (Subdivisions) is hereby amended to read as follows:
Ҥ 17.06.020 Establishment of number of residential dwelling unit allocations to be authorized annually.

A. The number of residential dwelling units for which the city may 131
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx authorize allocations each calendar year shall not exceed the number of units that would result in a growth of one percent in the city's population as of January 1st of that year. This number shall be considered the base allocation, not including any additional density that may be granted in accordance with subsection B of this section.

In determining the number of permissible units, the city shall use the most recent U.S. Census figures for Half Moon Bay to calculate the average number of persons per household.

B. The number of residential dwelling units authorized each year under subsection A of this section may be increased by fifty percent for additional dwelling units in the downtown area. This number shall be considered the maximum allocation including any additional density that may be granted. If fewer applications for allocations are received than are available, the remainder of these units may be authorized outside of the downtown area.

C. Applications for new residential dwelling units in areas of the city located outside of the downtown area shall have priority for onehalf of the units authorized under subsection A of this section. If fewer applications are received, the remainder of these units may be authorized in the downtown area.

D. Subject to subsections B and C of this section, the city shall allocate residential dwelling units among applications on the basis of the allocation system contained herein or a subsequently modified allocation system.

E. The "downtown area" is the area designated as the Town Center in Figure 2-2 of the Half Moon Bay Local Coastal Land Use Plan. Downtown Half Moon Bay redevelopment survey area in the city Resolution No. C-91-98, November 3, 1998. A copy of the map follows this section (Figure 1).”
B. Half Moon Bay Municipal Code section 17.06.065, “Priority established for residential development projects based on proximity,” within Title 17 (Subdivisions) is hereby amended to read as follows:
Ҥ 17.06.065 Priority established for residential development projects based on proximity.

Except as otherwise provided for in this title or as a result of city council approval of a development phasing plan and agreement, priority shall be established for projects located within the boundaries of the downtown area designated in Measure D as the Town Center in Figure 2-2 of the Half Moon Bay Local Coastal Land Use Plan.

Downtown Half Moon Bay redevelopment survey area and adopted 132
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx by city council Resolution No. C-91-98 November 3, 1998. As provided in Section 17.06.020, the number of residential dwelling unit allocations allowed within the downtown area may be twice the number of allocations outside of the boundaries of the downtown area.”
C. Half Moon Bay Municipal Code section 18.04.010, “Maximum number of new dwellings,” within Title 18 (Zoning) is hereby amended to read as follows:
Ҥ 18.04.010 Maximum number of new dwellings.

A. The number of dwelling units which the city may authorize each calendar year shall not exceed the number of units which would result in a growth of one percent in the city’s population as of January 1st of that year. In determining the number of permissible units, the city shall use the most recent U.S. Census figures for Half Moon Bay to calculate the average number of persons per household.

B. The number of dwelling units authorized each year under subsection A of this section may be increased by fifty percent for additional dwelling units in the downtown area.

C. Applications for new units from areas of the city outside the downtown area shall have priority for one-half of the units authorized under subsection A of this section. If fewer applications are received, the remainder of these units may be authorized in the downtown area.

D. Subject to subsections B and C of this section, the city shall allocate permissible dwelling units among applications on the basis of the existing allocation system in Chapter 17.06 of this code, or a subsequently modified allocation system.

E. The “downtown area” is the area designated as the Town Center in Figure 2-2 of the Half Moon Bay Local Coastal Land Use Plan. the Downtown Half Moon Bay redevelopment survey area in city Resolution No. C-91-98, November 3, 1998, which is incorporated herein by this reference.*
• Editor’s note: The Half Moon Bay Redevelopment Survey Area Map is incorporated into this code at Section 17.06.020.” SECTION 4. CONFORMING AMENDMENTS TO HALF MOON BAY LOCAL COASTAL LAND USE PLAN.

In light of the Local Coastal Land Use Plan amendments set forth above in Section 2 of this Ordinance, the Local Coastal Land Use Plan is hereby further amended as set forth below in order to promote internal consistency. Text in strikethrough (example) is deleted 133
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx and text in bold underline (example) is added. Text in standard font is not amended or readopted by this Ordinance.

A. The List of Figures in the Table of Contents of the Local Coastal Land Use Plan shall be amended as follows:
“Figure 1-7: 1999 Measure D Downtown Area”
B. The Changed Land Use Circumstances discussion on page 1-26 of the Local Coastal Land Use Plan shall be amended by adding the following after the first paragraph:
“In 2026, City voters passed an amendment to Measure D that redefined the “Downtown Area” to be the area designated as the Town Center in Figure 2-2 of this Plan.”
C. The title of Figure 1-7 on page 1-27 of the Local Coastal Land Use Plan is hereby amended as follows:
“FIGURE 1-7. 1999 MEASURE D DOWNTOWN AREA”
D. The text box next to Figure 1-7 on page 1-27 of the Local Coastal Land Use Plan is here by amended by adding the following:
“A voter-approved amendment to Measure D in 2026 redefined the downtown area to be the area designated as the Town Center in Figure 2-2 of this Plan.”
E. The Growth Management discussion on page 2-15 of the Local Coastal Land Use Plan is hereby amended as follows:
“As discussed in Chapter 1, Measure D was passed in 1999 to control the pace of residential development in Half Moon Bay and to reduce pressure on public infrastructure systems including water, sewer, and traffic.

Measure D incentivizes development in a defined Downtown Area, which overlaps with but differs from is the boundary of the Town Center emphasized in this Plan, by providing additional allocations each year in this area. To further support this measure, LUP policies address the impacts of residential development through growth management strategies including lot retirement, lot mergers, and transfer of development rights. The intent of these policies is to concentrate development in existing developed areas, specifically the Town Center, while limiting development in areas where coastal resources, environmental hazards, and public infrastructure constraints are present.”
SECTION 5. IMPLEMENTATION.

A. Following the effective date of this Ordinance the City of Half Moon Bay is 134
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx hereby authorized and directed to submit this Ordinance and any necessary supporting documents, to the California Coastal Commission for certification as an amendment to the City of Half Moon Bay Local Coastal Program. The voters further wish to submit this Ordinance’s amendment to the Local Coastal Program as an amendment that will take effect automatically upon the California Coastal Commission's approval.

B. The Local Coastal Land Use Plan and Subdivisions and Zoning Code may be reorganized or readopted in different format, and individual provisions may be renumbered or reordered, in the course of ongoing updates, provided that the provisions of Section 2 and 3 of this Ordinance shall remain, unless earlier repealed or amended by vote of the people of the City.

C. It is the intent of the voters that the provisions of this Ordinance shall be broadly construed in a manner that facilitates the purposes set forth herein and that this Ordinance be interpreted so as to be consistent with all federal and state laws, rules, and regulations. The provisions of this Ordinance shall not be applicable to the extent, but only to the extent, that they would violate the constitution or laws of the United States or of the State of California. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion of this Ordinance is held to be invalid or unconstitutional by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The voters hereby declare that this Ordinance, and each section, subsection, paragraph, subparagraph, sentence, clause, phrase, part, or portion thereof would have been adopted or passed even if one or more sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, parts, or portions are declared invalid or unconstitutional. If any provision of this Ordinance is held invalid as applied to any person or circumstance, such invalidity shall not affect any application of this Ordinance that can be given effect without the invalid application.

D. Except as otherwise provided herein, this Ordinance may be amended or repealed only by the voters of the City.

SECTION 6. CEQA
The adoption of the proposed Ordinance is statutorily exempt from the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA,” and 14 Cal. Code Regs. Sections 15000 et seq., “CEQA Guidelines”), under CEQA Guidelines section 15265 (adoption of coastal plans and programs).

SECTION 7. EFFECTIVE DATE
Pursuant to Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of Half Moon Bay have approved the Ordinance by a vote of no less than a majority of the votes cast by the electors voting at the General Municipal Election held on Tuesday, November 3, 2026, and shall go into effect ten (10) days thereafter.

Amendments to the Local Coastal Land Use Plan, Municipal Code (Title 17, Subdivision and Title 18, Zoning) require certification by the California Coastal Commission before 135
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx they may take effect.

SECTION 8. PUBLICATION
The Clerk shall cause this ordinance to be published in the manner required by law.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 3, 2026, election and took effect 10 days following adoption of a resolution declaring the results of the election at a meeting of the City Council of the City of Half Moon Bay held on _________: by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_________________________
Debbie Ruddock, Mayor
ATTEST:

Maggie Rodriguez, City Clerk
136
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx Attachment A
Figure 2.2 of the Local Coastal Land Use Plan
137
Exhibit A_City of Half Moon Bay Measure to Amend Downtown Area for Growth Management Policies 4933-8518-8271 v.3.docx Attachment B
The Downtown Half Moon Bay Redevelopment Survey Area in City Resolution No.

C-91-98, November 3, 1998
138
Exhibit 1

139
Exhibit 1

140
Exhibit 2

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1 City of Half Moon Bay – Planning Commission
Discussion Summary — May 12, 2026
Agenda Item 6C: Proposed Ballot Measure to Amend Measure D (Residential Growth Management System)
Participants
• Chair David Gorn
• Vice Chair Rick Hernandez
• Commissioner Christopher DelNagro
• Commissioner Jacob (Jim) Rems — recused himself at the outset, citing a conflict of interest (he rents a home within 500 feet of the affected area under discussion) • Leslie Lacko, Community Development Director
• Denise Bazzano, City Attorney
• Ruby Zalduondo, Assistant Planner
Background: What Is Measure D?
Measure D is Half Moon Bay's residential growth management system, adopted by voters in 1999 and certified by the California Coastal Commission in 2009. It limits annual residential growth to a maximum of 1.5% of population, split between two allocation pools:
• 0.5% allocated to the "Downtown" area, with an additional 0.5% available with City Council Approval
• 0.5% allocated to “Outside the Downtown” area
The "Downtown" boundary was originally defined using the 1998 Half Moon Bay Redevelopment Survey Area map, which has become misaligned with the city's current planning documents, community perception of the downtown area, and was originally chosen “out of convenience.”
What Is Being Proposed?
At the request of City Council, staff presented a single proposed change to the Zoning Code and Local Coastal Land Use Plan (LCLUP): replace the 1998 downtown boundary map used by Measure D with the Town Center map from the 2020 LCLUP. This is a map-only amendment — it does not change zoning, density allowances, or the up-to 1.5% growth cap.

Key statistics cited by Staff:
• Over the last four years (2022–2026), 108 allocations were granted outside downtown while only 22 were granted within downtown, showing heavy demand in the outside downtown pool.
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2 • Under the new map, 20 prior outside downtown allocations would have fallen within the new downtown boundary. Conversely, 3 allocations within the existing downtown designation would have been outside of the downtown boundaries. • 491 total parcels would be affected by the map change; either added to or subtracted from the mapped downtown area. 286 residential parcels would be added to the downtown area and 40 residential parcels would be subtracted.

Staff Recommendation:

1. Adopt a resolution recommending that the City Council consider amendments to the City’s Local Coastal Land Use Plan (LCLUP), Policy 2-16, and Half Moon Bay Municipal Code, Title 17 (Subdivisions), sections 17.06.020(E) and 17.06.065 and Title 18 (Zoning Code), section 18.04.010(E) and other conforming edits to amend the Measure D “Downtown Area”; and placing a measure on the November 3, 2026 general election ballot, seeking voter approval to amend the Measure D, Downtown Area to be the area designated as the Town Center in Figure 2-2 of the LCLUP.

2. Find the amendments exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA,” and 14 Cal. Code Regs. Sections 15000 et seq., “CEQA Guidelines”), under CEQA Guidelines section 15265 (adoption of coastal plans and programs).

Next steps:

City Staff brings proposed ballot measure to City Council; if placed on the ballot, voters would decide on November 3, 2026; if passed, the ballot measure would go to the California Coastal Commission for certification.

Planning Commission Discussion
Arguments in support of proposed ballot measure:
• The 1998 map was a "map of convenience" and the only legally defined downtown boundary available at the time, confirmed by the authors of Measure D. • The 2020 Town Center map reflects six years of community-based planning and better reflects where Half Moon Bay wants to concentrate core, walkable, compact development.
• The new map removes prime agricultural soils from the downtown area (shown in pink on the map) without adding new farmland to it.
143
3 • It eliminates confusion from having two conflicting maps and aligns Measure D with the certified LCLUP.
• The goal is to direct future housing growth (estimated ~1,000 units needed over 13 years) into the downtown core where infrastructure, walkability, and circulation improvements are planned (bike trails, streetscape improvements). • Development approval in affected areas does not change zoning. Higher-density zoning (R2, R3, CD, CG) already exists in those areas.

Arguments against proposed ballot measure:
• "Town center" is not the same as "downtown" — it includes residential, commercial, and some agricultural and industrial areas; the alignment feels forced and imprecise. • Some areas included in the new map (notably the Podesta property north of Highway 92 and land along Purissima Creek) are not genuine infill. They are large tracts that could attract large developers rather than individual homeowners. • The real public concern, heard widely in the community, is ADUs being subject to Measure D allocations and long wait times for transfers, not the map boundary. The map change doesn't fix these problems.
• There are reportedly 60+ empty infill lots between Railroad Avenue and Royal Leon Creek (west of Highway 1) that are not included in either map. That is where true residential infill opportunity exists.
• Large housing developers have been granted a huge proportion of available allocations, angering many residents. The map change may worsen this by adding large developable parcels to the downtown pool.
• California Department of Housing and Community Development has pressured the city to weaken or repeal Measure D. As Measure A and Measure D were originally placed on the ballot by voters, if there is concern about Measure D, any amendment or repeal should come from the voters themselves.
• Placing it on the ballot signals to voters that Measure D has problems, potentially weakening public support for the measure over time.

Points of Discussion across the Commission
Commissioners debated several things that they want City Council to consider:
• Two Commissioners said they would support ADUs being exempt from Measure D allocations, or at minimum counted as a small fraction (e.g., one-quarter of a unit). Both 144
4 Commissioners who debated this said they personally support zero ADU consumption of allocations. One Commissioner disagreed.
• All Commissioners agreed that the allocation transfer period should be shortened.

Currently, unused downtown allocations transfer to the outside-downtown pool in September. Commissioners previously recommended reducing this wait to 1–3 months and reiterated that recommendation.
• All Commissioners agreed that large developers should not be able to consume a disproportionate share of allocations and a cap (e.g., no single project takes more than 80% of available allocations) should be considered administratively. • All Commissioners agreed that prime agricultural soils should be protected, and existing policies reinforcing this should be clearly maintained. • All Commissioners agreed that future map revisions should focus on areas with an existing strong residential development footprint, particularly the area south of Purissima Creek, and avoid expanding into open agricultural land.

Votes Taken
Motion Result
Approve staff recommendation with added direction to Council on infill housing and map boundaries.

Failed 2–1 (Vice Chair
Hernandez yes; DelNagro
and Chair Gorn no)
Direct staff to draft a summary of the Commission's discussion to City Council so they are informed of how the 2–1 vote was reached.

Passed 3–0 unanimously
Outcome
The Planning Commission did not recommend the proposed ballot measure in its current form.

However, they voted unanimously to transmit a summary of their debate to City Council so Council understands the full range of concerns discussed. 145

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: June 2, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director Bryan Lopez, Senior Management Analyst
TITLE: FISCAL YEAR 2026-27 RECOMMENDED BUDGET
RECOMMENDATION:

Staff recommends that the City Council take the following actions:

1. Receive a presentation on the FY 2026-27 Recommended Budget, and after accepting public comments and providing any additional recommended changes, direct staff to return with the final proposed budget for adoption on June 16, 2026.

2. Adopt the Fiscal Sustainability Plan to provide a long-term framework for addressing the City’s ongoing structural fiscal challenges and guiding future financial decision-making.

FISCAL IMPACT:

There is no fiscal impact associated with this staff report. Following the hearing, any changes directed by the Council will be incorporated into the FY 2026-27 Recommended Budget which will be presented to the Council for adoption on June 16, 2026.

STRATEGIC ELEMENT:

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

BACKGROUND:

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

The budget process includes public meetings intended to gather feedback and provide opportunities for the community to participate in the development of the City’s annual budget.

On May 26, 2026, the City Council Finance Subcommittee met to review the proposed FY 2026-27 operating and capital budget and recommended presenting the budget to the full Council. 146
DISCUSSION:

FY 2025-26 ENDING ESTIMATES
As seen in the 3rd Quarter Financial Report, revenues are trending as anticipated, and expenditure savings from vacancies are expected to further improve the City’s financial position. As a result, staff estimates that the City will end the year with a greater-than-expected unassigned fund balance.

The table below highlights the fund balance expected on June 30, 2026:

With $4.2 million estimated in unassigned fund balance at the end of FY 2025-26, there is an opportunity to use these funds in the following year to mitigate the ongoing structural budget deficit, as discussed further in this report.

FY 2026-27 PROPOSED BUDGET – GENERAL FUND
Major Revenue Assumptions
Revenue estimates are based on the best data available at the time of budget development, with the understanding that economic conditions remain dynamic. The City takes a conservative approach, especially with its three largest General Fund revenues, TOT, Property Tax, and Sales Tax, which together comprise approximately 79% of General Fund revenue.

Transient Occupancy Tax - Following several years of revenue decline, TOT projections are based on using the most applicable prior-year data. Due to timing constraints in budget development, actuals from July through January of fiscal year 2025-26 were used, while estimates for March through June relied on corresponding months from 2025.

Using this approach, staff projects TOT revenue at $9.9 million for FY 2026-27, a relatively flat increase of $56 thousand, or less than 1%. This estimate remains conservative due to the current volatility in the economy, including domestic and foreign travel and corporate events and meetings.

Revised Budget FY 2025-26
Estimate Actuals
Beginning Fund Balance 13,902,420 13,902,420
+Revenues 25,353,502 25,897,144
-Operating Expenditures (24,374,607) (22,315,764)
-Capital Expenditures (1,005,000) (1,005,000)
Surplus / (Deficit) (26,105) 2,576,380
Ending Fund Balance 13,876,315 16,478,800
General Fund Reserve 7,312,382 7,312,382
Economic Uncertainty 4,874,922 4,874,922
Unassigned Fund Balance 1,689,011 4,291,496
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Property Taxes - The majority of base property tax revenue is estimated using assessment data from San Mateo County. Other components such as vehicle license fees (VLF) and property transfer taxes are based on a combination of actuals and year-end projections for FY 2025-26.

Property tax revenue is projected at $4.0 million for FY 2026-27. This represents a decrease of $253 thousand, or 6%, from the prior year. The overall decrease is primarily driven by an anticipated shortfall in VLF revenue from the State.

Sales and Use Tax - Sales and Use Tax estimates are developed using historical data, economic trends, and input from the City’s sales tax consultant. For FY 2026-27 the City budgeted $1.9 million for Measure R revenue and $3.1 million in ongoing Sales Tax revenue, for a combined total of $5.0 million. These estimates are relevantly flat with a marginal decrease of $19K or less than 1%.

General Fund Revenues
The proposed budget includes General Fund revenues totaling $24.2 million, $1.1 million (5%) lower than the prior-year revised budget of $25.3 million. The decrease is primarily attributable to lower projected property tax revenues and reductions in one-time revenues.

The following table illustrates the FY 2026-27 revenue budget:

FY 2025-26
Revised Budget
FY 2026-27
Draft Budget % Chg $ Chg
Transient Occupancy Tax 9,889,557 9,945,653 56,096 1%
Property Tax 4,339,795 4,086,577 (253,218) -6%
Sales & Use Tax 5,049,300 5,030,100 (19,200) 0%
All other revenues 6,074,851 5,140,537 (934,314) -15%
Total 25,353,502 24,202,867 (1,150,636) -5%
All Other Revenues - This category includes revenues such as business license, golf facilities fees, parking fees, and grant funding. This category is decreasing primarily due to the expiration of a golf fee revenue sharing agreement and a decrease in one-time revenuesfrom withdrawing from the Sheriff Savings account.

General Fund Expenditures
The proposed expenditures budget is $25.7 million, a 1% increase from the prior year. This increase is primarily due to the resumption of contributions to the City’s Internal Service Funds.

The table below shows a summary of expenditures by type:

FY 2025-26
Revised Budget
FY 2026-27
Draft Budget % Chg $ Chg
Salaries & Benefits 7,653,772 7,895,174 241,402 3%
Operations 14,563,403 14,475,374 (88,029) -1%
Operating Transfers 2,157,433 2,729,093 571,659 26%
Capital Transfers 1,005,000 620,000 (385,000) -38%
Total 25,379,607 25,719,640 340,033 1%
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• Salaries & Benefits - The budget reflects cost-of-living increases associated with existing labor agreements and assumes all budgeted positions are filled. The FY 2026-27 budget also includes one additional full-time position, a Chief Building Official, previously approved by the City Council. Because the City is currently engaged in collective bargaining negotiations, salary and benefit assumptions may change based on the outcome of those negotiations.
• Operations - Operational updates for FY 2026-27 include increased legal and HR consulting support (Administrative Services), expanded communications and advertising (City Clerk/Communications), full funding for the Community Services Financial Assistance (CSFA) program funding (City Manager’s Office), reductions in building services contract shifted to in-house staff (Community Development), and increased streetrelated repairs (Public Works). Costs for ongoing Public Safety services, such as Sheriff patrol and 911 dispatch, have also increased.
• Transfers - Transfers, which provide funding for internal service functions, pension obligations, and special one-time projects, are increasing primarily due to the resumption of contributions to the Risk Management Fund. In FY 2025-26, the City temporarily suspended approximately $571 thousand in contributions due to the fund’s strong available balance.
• Capital Transfers - This reduction reflects a shift in funding sources, with more Capital Improvement Program (CIP) projects being funded through special revenue funds rather than the General Fund. Total CIP funding across all sources is $25.5 million.

Fund Balances
The FY 2026-27 proposed budget includes $24.2 million in revenues and $25.7 million in expenditures, resulting in a planned use of fund balance of approximately $1.5 million. The use of unassigned reserves is intended to support ongoing operations while the City continues to address long-term structural fiscal challenges.

The table below summarizes the proposed FY 2026-27 ending fund balance and reserve levels. 149
On June 30, 2027, reserves are projected to remain fully funded at 50% of operating expenditures, or approximately $12.5 million.

Looking Ahead
Since FY 2023-24, the City has faced ongoing structural budget deficits driven by rising operating costs and the volatility of key revenue sources. Approximately 60% of General Fund revenues are derived from economically sensitive sources such as Transient Occupancy Tax (TOT) and sales tax, making the City particularly vulnerable to changes in tourism activity and broader economic conditions. While the City’s financial outlook has improved, long-term fiscal risks remain.

In response to these ongoing fiscal challenges, the City Council directed staff to develop a Fiscal Sustainability Plan (Attachment 2). The purpose of the plan is to provide a long-term framework for maintaining fiscal stability while minimizing impacts to City services and the community. The Fiscal Sustainability Plan is structured in phases intended to escalate only as necessary based on the City’s financial condition.
• Phase I – Fiscal Stabilization: The City is currently in Phase I, focused on operational efficiencies and financial best practices such as improving budget accuracy, maximizing revenue collection, managing vacancies, and reviewing cost recovery. • Phase II – Short-Term Actions: If fiscal pressures continue, the City may utilize temporary measures such as reserves, one-time funding solutions, or reductions in capital transfers. • Phase III – Long-Term Structural Actions: If structural deficits persist and reserves fall below policy targets, the City may evaluate additional revenue measures and/or reductions to service levels following City Council direction.

CONCLUSION:

The FY 2026-27 Recommended Budget maintains core City services, preserves reserve levels FY 2026-27
Recommended
Beginning Fund Balance 16,478,800
Add: Revenues 24,202,867
Less: Expenditures (25,719,640)
Surplus / (Deficit) (1,516,773)
Ending Fund Balance 14,962,027
Reserves
General Fund Reserve 7,529,892
Economic Uncertainty Reserve 5,019,928
Unassigned Fund Balance 2,412,207
Reserves fully funded at 50% of operating expenditures
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consistent with Council policy, and reflects a continued focus on long-term fiscal sustainability.

While the City’s near-term financial position has improved, structural fiscal challenges remain and will require ongoing monitoring and proactive financial planning in future years.

ATTACHMENTS:

1. Resolution

2. FY 2026-27 Proposed Operating and Capital Budget (link to be added)

3. Five Year Forecast and Fiscal Sustainability Plan
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RESOLUTION NO. C-2026-

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

FISCAL SUSTAINABILITY PLAN
WHEREAS, the City of Half Moon Bay annually prepares and adopts a budget to support the delivery of municipal services and implementation of City Council priorities; and WHEREAS, the City has experienced ongoing structural fiscal challenges in recent years due to rising operating costs, economic uncertainty, and the volatility of key General Fund revenues, including Transient Occupancy Tax and Sales Tax; and WHEREAS, the City Council directed staff to develop a Fiscal Sustainability Plan to provide a long-term framework for addressing structural budget imbalances and maintaining fiscal stability; and
WHEREAS, the Fiscal Sustainability Plan establishes a phased approach to fiscal management intended to support long-term financial sustainability while minimizing impacts to City services and the community; and
WHEREAS, the Fiscal Sustainability Plan is intended to serve as a policy and planning framework to guide future financial decision-making and does not appropriate funds or authorize specific future budget reductions, revenue measures, or service level changes; and WHEREAS, the City Council has reviewed and considered the Fiscal Sustainability Plan at a duly noticed public meeting.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby adopts the Fiscal Sustainability Plan attached hereto as Exhibit A and Exhibit B to guide the City’s long-term financial planning and support ongoing fiscal sustainability efforts.

I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 2nd day of June 2026, 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, Interim City Clerk Debbie Ruddock, Mayor 153
Fiscal Sustainability Plan
Implementation Activation
Phase I – Initial Fiscal Stabilization Measures
Strategies one through five should be activated when the City’s five-year forecast projects the ending fund balance will fall below 50% of annual operating expenditures at the end of the forecast period. Should these strategies be implemented and not fully address the structural deficit, the remaining strategies should be considered as outlined in the following phases.

Phase II – Assessment and Short-Term Actions
Once the City has begun utilizing its reserves, reducing or eliminating the capital transfer, or executing other one-time solutions, it must begin the assessment process to determine if the current imbalance is short-term or long-term.

If it is a short-term imbalance and the utilization or reserves, elimination or reduction of the capital transfer, or other one-time solution will close the gap until revenues and/or expenditures return to expected levels, then the long-term strategies will not be initiated.

During this phase, strategies six through eight may be implemented, as appropriate, to provide additional short-term stabilization measures while the City evaluates the duration and severity of the imbalance.

Phase III – Long-Term Structural Actions
Strategies nine and ten should be considered when the City’s actual ending fund balance falls below 50% of annual budgeted operating expenditures and the imbalance is determined to be long-term in nature.

Indicators of a long-term imbalance may include:
 The permanent loss of an ongoing revenue source,
 A permanent increase in expenditures, and/or
 The need for short-term strategies to close the imbalance for two consecutive fiscal years
In these situations, the City will begin the implementation of the long-term strategies of exploring additional tax measures and/or reducing service levels.

The first step in this process is a comprehensive review of the financial situation with City Council at a public meeting to receive feedback and direction. 154
Fiscal Sustainability Strategies

PHASE I

1. ENSURE BUDGET EFFICIENCY
Maintain reliable budgets and long-term forecasts that reasonably align with actual revenues and expenditures.

Actions could include, but are not limited to, incorporating a vacancy assumption, establishing a sustainable baseline for TOT, and updating forecasting assumptions.

2. MAXIMIZE REVENUE COLLECTIONS
Ensure the City collects revenues owed under local ordinances and agreements while promoting fairness and compliance.

Actions could include, but are not limited to, increasing compliance efforts, reviewing and improving revenue tracking processes.

3. IMPROVE OPERATIONAL EFFICIENCY
Evaluate City operations and expenditures to ensure resources are being utilized effectively and efficiently.

Actions could include, but are not limited to, strategically managing vacancies and staffing levels, evaluating service delivery models, and identifying cost-saving opportunities.

4. REVIEW COST RECOVERY FOR SERVICES
Evaluate whether fees and charges appropriately recover the cost of providing City services.

Actions could include, but are not limited to, conducting fee and cost recovery studies, reviewing user fees against comparable agencies, and adjusting fees where appropriate and legally permissible.

5. UTILIZE AND MAINTAIN THE COST ALLOCATION PLAN (CAP)
Maintain an updated methodology for allocating administrative and overhead costs across City operations and funds.

Actions could include, but are not limited to, periodically updating the Cost Allocation Plan, utilizing the CAP to support fee calculations and service pricing, and allocating General Fund overhead costs to benefiting funds and programs.
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PHASE II

6. UTILIZE RESERVES FOR SHORT-TERM STABILIZATION
Use reserves on a limited and temporary basis to maintain service levels during periods of fiscal imbalance.

Actions could include, but are not limited to, utilizing reserves consistent with City policy, and developing plans to restore reserves over time.

7. REDUCE OR TEMPORARILY ELIMINATE CAPITAL TRANSFERS
Temporarily reduce discretionary transfers to capital programs to preserve General Fund stability.

Actions could include, but are not limited to, deferring transfers to capital projects, delaying non-critical infrastructure projects, and developing a plan to restore capital funding.

8. IMPLEMENT OTHER ONE-TIME SOLUTIONS
Use temporary measures to address short-term fiscal gaps while longer-term solutions are evaluated.

Actions could include, but are not limited to, utilizing one-time revenues for temporary support, reducing contributions to internal service funds where appropriate, and deferring or postponing certain discretionary expenditures.

PHASE III

9. EXPLORE ADDITIONAL TAX OR REVENUE MEASURES
Evaluate voter-approved revenue options if existing revenues are insufficient to maintain structural balance.

Actions could include, but are not limited to, analyzing local tax measure options, conducting financial and community impact assessments, and preparing future ballot initiatives for voter consideration.

10. REDUCE SERVICE LEVELS
Reduce expenditures through service-level adjustments when other measures are insufficient to restore structural balance.

Actions could include, but are not limited to, conducting service prioritization and evaluation processes, reducing or restructuring lower-priority programs or services, and identifying ongoing expenditure reductions across departments. 156

CITY OF HALF MOON BAY
Five-Year Forecast and Fiscal Sustainability Plan
DKG Consultants

May 2026
157
Five-Year Forecast and Fiscal Sustainability Plan
Forecast Overview and Purpose
The City’s five-year General Fund financial forecast is intended to serve as a planning tool to guide decision making and better understand the long-term implications of expenditure commitments being contemplated. The forecast is best utilized as a “living document” that is updated regularly as the City’s financial conditions change. The current forecast reflects a structural imbalance, meaning recurring expenditures exceed recurring revenues, which is not sustainable over the long term. This forecast is accompanied by a fiscal sustainability plan that provides a strategic framework for addressing the structural deficit.

Revenue Discussion and Assumptions
The City’s General Fund revenues are generated primarily from taxes and service fees. Three sources of revenue, transient occupancy tax, sales tax, and property tax, make up nearly 80% of total General Fund revenues, representing a significant concentration amongst just a few revenue sources. This concentration creates a degree of financial risk for the City that will be discussed throughout this narrative. The General Fund’s main revenue sources are discussed in detail as follows.

Transient Occupancy Tax (TOT): TOT comprises approximately 41% of General Fund revenue and is assessed at a rate of 15% of the nightly room rate for hotels and other shortterm rental establishments. As a coastal city, Half Moon Bay’s hotels rely heavily on tourismrelated travel, which can fluctuate based on economic conditions. With the tax rate being a function of both room rates and occupancy rates, this fluctuation can create significant volatility, with good economic conditions leading to increasing revenues and poor economic Transient
Occupancy
Tax
41%
Sales & Use
Tax
21%
Property
Taxes
17%
All other revenues 21%

GENERAL FUND REVENUES
158
conditions driving revenues down. An extreme example of this was the COVID-19 pandemic, where revenues dropped precipitously in 2020 and 2021.

TOT revenues have been projected at $9.9 million for the FY 2026-27 budget, and they are expected to increase at a rate of 2.5% annually throughout the forecast period. This growth reflects an assumption of stable occupancy rates and inflationary growth in room rates.

Sales Tax: Sales tax is the second largest
source of General Fund revenue, comprising
nearly 21% of the total. With the ½ cent local
sales tax measure (Measure R) passed by
voters in 2024, the City now receives a total
of $0.015 on all taxable sales. The City’s
sales tax revenue is concentrated in three
main categories, food (taxable groceries and
restaurants), retail, and transportation
(automobile sales and gasoline). The food
category comprises approximately 50% of all
sales tax revenue.

Like TOT, sales taxes can be volatile due to the City’s reliance on tourism and other general economic factors such as trends in buying patterns (online sales and spending on non- -2
4 6
8 10
12 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 MILLIONS Transient Occupancy Tax Revenues
Ten Year History
51%
13%
21%
15%

SALES TAX BY SOURCE
Restaurants General Retail
Transportation Other
159
taxable services as opposed to goods). The five-year forecast assumes sales tax will increase modestly, ranging from 1% to 3% annually, and is based on estimates provided by the City’s sales tax consulting firm.

Property Tax: Property tax represents approximately 17% of General Fund revenues and is the third largest source. There are a number of components included in property tax, with the most significant financially being secured property tax. Secured property tax makes up 65% of total property tax revenues and is a stable source of revenue for the City. The fiveyear forecast projects that secured property tax will grow by 2.5% annually. While this is a stable source of revenue, it is important to note that Half Moon Bay receives a relatively small share of the overall 1% of assessed property value, at only 7% of the 1% tax levy. This is predominantly a function of Half Moon Bay not being responsible for fire protection and prevention services. These services are provided by the Coastside Fire Protection District, which receives a 19% share of local property tax. Other notable distributions of the 1% property tax rate are the Cabrillo Unified School District (36%) and the County of San Mateo (22%).

Other significant sources of property tax revenue include Excess Educational Revenue Augmentation Fund (ERAF) and Property Tax in Lieu of Vehicle License Fees. Excess ERAF is due to local funding for schools in the County being suƯicient to cover mandated costs, which results in a portion of property taxes that had been previously shifted away from cities being “refunded” back to the cities. Excess ERAF revenues are projected to grow at the same rate as secured property tax revenues throughout the forecast period. 160
Property Tax in Lieu of Vehicle License Fees (VLF) revenue has become very uncertain over the past decade, as the source of funding to make these payments has not been enough to meet the obligation (“VLF shortfall”). Prior to 2025-26, the State had always backfilled the VLF shortfall to ensure the cities received the entire amount of the obligation. In 2025-26, the State only made payment on two-thirds of the obligation, which was related to the VLF shortfall from 2023-24. Going forward, it is highly uncertain as to whether the State will make any further payments related to the VLF shortfall, and as a result, the forecast reflects only the amount of Property Tax in Lieu of VLF that is actually expected to be available, with no backfill of shortfall amounts included in the projection. For fiscal year 2026-27, the forecast includes approximately $917,000 in Property Tax in Lieu of VLF revenue, compared to the City’s full estimated obligation of approximately $1.8 million.

Other Revenues: The majority of the remaining revenues for the General Fund consist of charges for services, which are predominantly development-related services such as planning, building, and engineering. These revenues are subject to economic and development cycles, which are unpredictable. The five-year forecast projects modest (2%) growth in service charges, which reflects activity being maintained at current levels with fees increasing to keep up with inflationary trends.

Expenditure Description and Assumptions
Contract Services: Contract services comprise the largest portion of the General Fund expenditure budget at 50% of the total. The majority of this category is the funding for police and animal control services, which are provided by the County of San Mateo. Contract services are estimated to grow at a modest 3% annually, reflecting contractual or planned growth in financial obligations for public safety services, with the expectation being that costs stabilize going forward after several years of significant annual increases in contract costs (total contractual services costs are up 42% since FY 2022-23).

Salaries and Benefits: The direct cost for City staƯ makes up 31% of General Fund expenditures, and the five-year forecast assumes that this category will grow approximately 4% annually. This growth assumption is based on certain known factors, such as contractual salary obligations, and certain assumed factors, such as growth rates for medical and other insurance premiums. The forecast also assumes continuation of existing labor agreement structures and compensation trends. As the City is currently engaged in labor negotiations, actual future salary and benefit costs may diƯer materially depending on the outcome of those negotiations.
161
Debt Service: The City currently has two debt obligations, both of which are due to the County of San Mateo. The City is currently paying approximately $572,000 annually to the County for a loan related to the construction of the Library, and this loan will be fully paid oƯ by FY 2028-29. The other loan is related to 880 Stone Pine to further aƯordable housing eƯorts. This loan requires $346,000 in annual repayments through FY 2033-34.

Operating Transfers
Internal Service Funds: The City utilizes internal service funds to provide for vehicle and equipment replacement, risk management, and pension stabilization. The internal service funds are funded through transfers from the operations benefitting from the services provided. Forecasted growth for the operating transfer to the internal service funds is based on the average annual growth in operating costs, which is approximately 4%.

Pension: This amount represents the annual payment required by CalPERS attributable to the unfunded accrued liability (UAL or “unfunded liability”). The amount in the forecast represents the estimated required payment as established by CalPERS based on its most recent actuarial valuations for the City. This amount will fluctuate annually based on a number of factors, most notably the actual rate of return on the CalPERS investment portfolio.

Capital Transfers: $1 million has been programmed annually throughout the forecast as the General Fund’s contribution to capital expenditures. This contribution covers a portion of the cost for maintenance and rehabilitation of core City infrastructure.

Surplus/(Deficit) and Reserve Position
Based on the data and assumptions for the current forecast, the City’s General Fund is facing a structural deficit, with recurring expenditures exceeding recurring revenues by $1.5 million to $2.7 million annually. At the peak of the annual deficits in FY 2028-29, operating expenditures are nearly 11% higher than operating revenues.

The following chart highlights projected revenues and expenditures in the City’s five-year forecast as of May 2026.
162
The City maintains two reserves in the General Fund by policy, the General Fund reserve and the Economic Uncertainty reserve. The General Fund reserve is funded at 30% of annual operating expenditures and is intended to provide financial stability during periods of significant fiscal stress or emergency conditions. The reserve may be utilized for a number of purposes, including meeting cash flow needs, closing short-term budget gaps, unexpected expenditure requirements or revenue shortfalls, and State actions such as unfunded mandates or revenue takeaways.

The Economic Uncertainty reserve is set at 20% of annual operating expenditures and is typically intended to serve as a strategic bridge during periods of economic uncertainty or forecasted structural imbalance, allowing the City time to thoughtfully evaluate and implement long-term fiscal sustainability measures.

Funds in excess of these two reserve levels are considered unassigned fund balance to be utilized at Council’s discretion.

Due to the structural deficit previously discussed, policy-level reserves are not able to be fully funded during the forecast period. For the first two years of the forecast, the 30% operating contingency reserve is fully funded; however, the economic uncertainty reserve is only partially funded, with total reserves equivalent to 36% of operating expenditures projected at the close of FY 2028-29. Reserves continue to be depleted through the remainder of the forecast, with FY 2031-32 ending with reserves at 11% of operating expenditures, or just under $3 million.
21 22
23 24
25 26
27 28
29 30
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 Millions General Fund: Five Year Forecast
Revenues and Expenditures
Operating Expenditures Capital Expenditures Revenues
163
With reserves dropping to extremely low levels by the end of the forecast period, the City must begin to start addressing its structural deficit in the near term. A plan for addressing this issue is discussed in a subsequent section of this report.

Key Vulnerabilities
As the City considers strategies for addressing the structural deficit in the General Fund, it must consider some of the key vulnerabilities that could impact the forecast and potentially accelerate the depletion of reserves. While it is possible that conditions will be better than what is projected in the forecast, based on the City’s circumstances, there is risk that conditions will be worse than what is in current forecast. In addition to the risk of a broad economic downturn that impacts revenues, the City has a number of specific vulnerabilities as discussed below.
-
2 4
6 8
10 12
14 16
18 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Millions General Fund: Five Year Forecast
Fund Balances
Reserves Unassigned
164
Revenue Volatility: The City’s reliance on TOT
and Sales Tax to fund core services creates risk
due to the volatile nature of those revenues. As
noted previously, good economic conditions can
drive relatively significant year-over-year
increases in TOT because both room rates and
occupancy rates are elevated, while sales tax
revenues are similarly impacted by tourism
activity and consumer spending trends.

Correspondingly, poor economic conditions can
lead to relatively large drops in these revenues as
room rates, occupancy rates, and taxable sales
decline. With TOT and Sales Tax comprising
approximately 60% of General Fund revenues,
maintaining strong reserve levels is critical to
sustaining services during downturns and being
able to strategically and thoughtfully address
those impacts.

Vehicle License Fee (VLF) Shortfall: Another significant source of vulnerability for the City is the persistent shortfall in the funding available for the State to meet its Property Tax in Lieu of VLF obligation. Prior to FY 2025-26, when the State faced a shortfall in funding for this obligation, it backfilled the shortfall with its General Fund to keep the aƯected cities whole.

In the current year, when the State was due to backfill the FY 2023-24 VLF shortfall, it opted to only fund two-thirds of the shortfall amount. Based on information the City is receiving from the County, not only is the backfill of the ongoing shortfall at risk, the amount of the actual shortfall is also expected to grow, which may result in the need to adjust the forecast downward.

Expenditure Volatility: While expenditures are more at the discretion of the City than revenues, there are several expenditure areas where the City is vulnerable. As was evidenced over the past several years, where contractual services expenditures have increased 42%, the City is exposed to increased costs beyond its direct control through the utilization of contract services for police and other public safety services. The other area of expenditure vulnerability is with CalPERS, where overall performance of the investment portfolio, as well as certain other factors, can impact the amount of the City’s required payment on an annual basis.
165
Fiscal Sustainability Plan
With a forecasted structural deficit, it is important that the City has a plan to bring the General Fund back into structural balance. Because the City uses a five-year forecast as a long-term planning tool and it is currently well positioned with its policy reserves being fully funded, the City has the advantage of time to develop a thoughtful and strategic plan for establishing fiscal sustainability. This allows the City to develop a plan that prioritizes actions that maintain service levels and minimize disruption to the Half Moon Bay community. In an ideal circumstance, these actions, along with the potential for actual financial results exceeding forecasted expectations, will allow the City to return to structural balance without taking more significant actions that result in cuts to City services.

The fiscal sustainability plan put forward as follows is intended to be considered sequentially, with the initial actions being the least impactful to the community and the latter actions being more impactful and in need of additional analysis and consideration. Further, many of the actions put forward in the fiscal sustainability plan, specifically the first five items, are considered best practices and should be incorporated into ongoing operations.

1. Ensure Budget EƯiciency: A budget and corresponding financial forecast are eƯicient when there is a reasonable variance between budgeted amounts and actual revenues and expenditures. When there is significant variance between what is budgeted and actual revenues and expenditures, especially when this variance persists year-over-year, the budget and corresponding financial forecast are unreliable and often present a scenario that is unlikely to come to fruition. In the case of Half Moon Bay, an analysis of the budget and forecast indicates that there is generally good eƯiciency, with budget-toactual variability being reasonable given the inherent volatility of the General Fund’s largest revenue source, TOT. There are two areas where the City can improve its overall budget eƯiciency and create greater fiscal resiliency.
a. Vacancy Rate – The City’s current vacancy rate is nearly 30%; however, the City’s budget assumes that all positions will be filled. Even with a more standard vacancy rate of 5% to 10%, many agencies will make a budgetary assumption that there will be some vacancies over the course of the year and will adjust the budget downward to acknowledge this, which will better align the budget with expected personnel spending. While technically a less conservative approach, Council could provide direction in implementing a vacancy rate assumption. b. Baseline TOT for Core Services: With TOT being such a large portion of the General Fund and being highly volatile, the City can analyze historical trends and determine a sustainable baseline for TOT revenues that can be counted on to fund 166
core services and will program amounts above the sustainable baseline for onetime purposes or to put towards reserves. This will neutralize some of the volatility of this revenue source and allow for more consistent forecasting. The implementation of this strategy will occur over time as revenue levels increase above baseline amounts.

2. Revenue Collections: The City needs to ensure that it maximizes collections of the revenues it is due, particularly locally levied taxes like TOT and business license registration. A focus in this area is necessary to assist with returning to structural balance, and it also promotes equity in the application of City ordinances by ensuring that businesses, hotels, and short-term rentals are all being held to the same standard.

With current vacancies and a lack of expertise in tax compliance, the City can evaluate whether bringing on an outside contractor to provide these services is in the City’s best interests.

3. Cost Savings and Operational EƯiciency: While there is always a focus on spending to ensure the best use of taxpayer funds, staƯ will put a sharper focus on spending within the organization to ensure the City is maximizing its limited resources. This will include utilizing existing vacancies strategically by keeping certain positions vacant as the administration evaluates how to best provide services and the overall organizational structure.

4. Cost Recovery for Services: The City charges fees for some of the service it provides, and while it cannot charge more than the cost of providing the service, it can choose to not fully recover the cost of service. The decision on the level of cost recovery is a Council policy decision, and it is one that needs to be made based on an analysis of current cost recovery rates, standard practice for local jurisdictions, and historical precedence in Half Moon Bay. This analysis may indicate that the City should increase its cost recovery for certain services, which would reduce pressure on other areas of the budget.

5. Cost Allocation Plan: Related to the cost recovery item is the development of a cost allocation plan, or CAP. A CAP is an analysis that allocates the cost of City administration and other general overhead expenditures to the beneficiaries of those services. An updated CAP allows the City to develop a full cost of service model for fee-based services, which will better inform the policy decision on cost recovery, and it will serve as the basis for an internal allocation of General Fund administrative and overhead costs to the other funds that benefit from those services. The City currently maintains a CAP, which was most recently updated in 2024 and can be utilized to support the cost recovery analysis.

6. Utilization of Reserves: The City has been able to maintain its two General Fund reserves at policy levels and retain a modest amount of unassigned fund balance. The current forecast estimates that the economic uncertainty reserve will remain at its policy 167
level, 20% of operating expenditures, through FY 2026-27 before being drawn upon to maintain services. Drawing upon this reserve to maintain services is consistent with policy; however, using the reserve to close a structural gap, as is the case in the current forecast, will result in the depletion of all General Fund reserves over time. The utilization of reserves in the near-term as the City executes to other areas of the fiscal sustainability plan can be accommodated, but the recurring use of the reserves cannot.

7. Reduce or Eliminate Capital Transfer: As an alternative to depleting existing reserves, or if those reserves are already depleted, the transfer of funds from the General Fund to the various capital funds could be reduced or eliminated, as these transfers are at the discretion of the Council. It should be noted, however, that reducing or eliminating the capital transfer will result in deferred maintenance of City infrastructure and will likely lead to higher costs in the future. Thus, this action should be only taken after thoughtful consideration, including a plan to reinstate the transfer as soon as practicable.

8. Other One-Time Solutions: Similar to the previous strategy, the City has other one-time options to reduce expenditures without reducing City services. For example, depending on reserve levels for internal services funds, the City could opt to reduce or eliminate funding for certain internal services. The City could also opt to fund ongoing operations with one-time revenues. These are both short-term solutions because neither are sustainable over time.

9. Explore Additional Tax Revenues: If the City has taken the previously noted actions and still finds itself unable to balance recurring revenues with recurring expenditures without cutting service levels (discussed below), it will need to consider a tax measure to increase revenues. The City has a number of options for increasing its tax revenues, and all of them require approval from the voters. This means that suƯicient lead time will be needed to analyze potential options, make decisions, and move forward with a ballot initiative, with the next realistic option for a ballot initiative being 2028.

10.Reduce Service Levels: Should the City determine that it is not able to achieve structural balance with existing resources and it is not interested in pursuing a tax measure, it will need to cut services and/or service levels. There are a number of ways to accomplish this; however, the most thoughtful and strategic methodology is to go through a process to evaluate all services, prioritize them into categories, and make cuts to the lowest priority services. This is a diƯicult proposition and is last on the list of the fiscal sustainability plan as a result. The City is not at the point of needing to conduct this analysis and prioritization, but if it is unable to achieve structural balance through the other means previously discussed, service cuts will be required in the future. 168
Fiscal Sustainability Plan – Implementation Activation
Phase I – Initial Fiscal Stabilization Measures
As noted previously, strategies one through five should be undertaken as a first step to returning to fiscal stability, and these strategies should be maintained as best practices going forward.

Strategies one through five should be activated when the City’s five-year forecast projects the ending fund balance will fall below 50% of annual operating expenditures at the end of the forecast period. Should these strategies be implemented and not fully address the structural deficit, the remaining strategies should be considered as outlined in the following phases.

Phase II – Assessment and Short-Term Actions
Once the City has begun utilizing its reserves, reducing or eliminating the capital transfer, or executing other one-time solutions, it must begin the assessment process to determine if the current imbalance is short-term or long-term.

If it is a short-term imbalance and the utilization or reserves, elimination or reduction of the capital transfer, or other one-time solution will close the gap until revenues and/or expenditures return to expected levels, then the long-term strategies will not be initiated.

During this phase, strategies six through eight may be implemented, as appropriate, to provide additional short-term stabilization measures while the City evaluates the duration and severity of the imbalance.

Phase III – Long-Term Structural Actions
Strategies nine and ten should be considered when the City’s actual ending fund balance falls below 50% of annual budgeted operating expenditures and the imbalance is determined to be long-term in nature. Indicators of a long-term imbalance may include:
 The permanent loss of an ongoing revenue source,
 A permanent increase in expenditures, and/or
 The need for short-term strategies to close the imbalance for two consecutive fiscal years
In these situations, the City will begin the implementation of the long-term strategies of exploring additional tax measures and/or reducing service levels.

The first step in this process is a comprehensive review of the financial situation with City Council at a public meeting to receive feedback and direction. 169