Half Moon Bay City Council
July 21, 2026

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Karen Decker, Interim Deputy City Manager

TITLE: SISTER CITY MOU WITH NAZARÉ, PORTUGAL
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the Mayor and City Manager to execute a Memorandum of Understanding establishing a Sister City relationship between the City of Half Moon Bay and Municipality of Nazaré, Portugal.

FISCAL IMPACT:

There is no direct cost to the City associated with entering into an MOU with the Municipality of Nazaré.

STRATEGIC ELEMENT:

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

BACKGROUND:

On June 16, 2026, Council received an update on a potential sister city arrangement with the Municipality of Nazaré. The staff report included background information on the concept and structure of Sister City relationships, precedent from an existing sister city relationship with Kariwa-Village, Japan, and the history of Portuguese placemaking and contributions to Half Moon Bay and the broader Coastside.

As part of this update, Council received a presentation from local resident Jonathan Oliveira, who described the potential relationship as being “more than a proposal. It’s really a story of what Half Moon Bay is, where we came from, and… a once-in-a-generation opportunity to put this town on the world map” (Attachment 3).

Mr. Oliveira highlighted similarities between the two communities, including their internationally recognized big-wave surfing, comparable population sizes, and economies centered on tourism, fishing, and agriculture, as well as their shared Portuguese heritage and traditions. He also 208

described potential economic benefits, including raising Half Moon Bay’s international profile, attracting cross-Atlantic visitors, and generating media attention.

Support for establishing a Sister City relationship has been expressed by the Consul General of Portugal in San Francisco, the Mayor of San Francisco, the Secretary of State for the Economy of Portugal, and the Mayor of Nazaré. The presentation was enthusiastically received by both public commenters and by the Council, which directed staff to return with a proposed MOU for consideration.

DISCUSSION

1. Staff are returning to the City Council with a proposed Memorandum of Understanding (MOU) for consideration. Staff recommend that the Council adopt the attached resolution authorizing the Mayor to enter into the MOU, establishing a Sister City relationship between the City of Half Moon Bay and Municipality of Nazaré, Portugal.

The MOU does not obligate the City financially, but established the purposes and objectives of the partnership, identifies potential areas of cooperation, and provides other legal terms and conditions.

If the Council approves the resolution, City staff will finalize negotiation of the Draft MOU, continue meeting with community members and collaborating with leaders in Nazaré to coordinate a signing ceremony with leaders from the Nazaré community, explore opportunities to collaborate on joint issues, and celebrate Portuguese heritage - including a potential art installation, such as a compass rose. Such a project would require stakeholder engagement, identification of a suitable location, a Coastal Development Permit, funding, and a plan for installation and ongoing maintenance.

Additional next steps include finalizing a nonprofit support organization spearheaded by Half Moon Bay residents and establishing a Half Moon Bay-Nazaré Sister City Committee.

ATTACHMENTS

2. Resolution

3. Memorandum of Understanding

4. June 16, 2026, PowerPoint Presentation by Jonathan Oliveira 209
RESOLUTION NO. 2026-

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

MAYOR AND CITY MANAGER TO NEGOTIATE AND ENTER INTO A MEMORANDUM OF

UNDERSTANDING (MOU) ESTABLISHING A SISTER CITY RELATIONSHIP BETWEEN THE CITY OF HALF MOON BAY AND MUNICIPALITY OF NAZARÉ, PORTUGAL.

WHEREAS, the City of Half Moon Bay and the Municipality of Nazaré, Portugal, share strong cultural, historical, and economic connections, including internationally recognized bigwave surfing destinations, maritime traditions, tourism-based economies, and longstanding Portuguese heritage within the Half Moon Bay community; and WHEREAS, on June 16, 2026, the City Council received a presentation regarding the opportunity to establish a Sister City relationship with the Municipality of Nazaré and directed staff to return with a proposed Memorandum of Understanding (MOU) for Council consideration; and
WHEREAS, the proposed MOU establishes a framework for cultural, educational, civic, and community collaboration while recognizing that the relationship is intended to promote goodwill and friendship between the two municipalities; and WHEREAS, the proposed MOU is not intended to create legally binding obligations and does not create a direct financial obligation for either party, and each party will bear its own costs unless otherwise agreed in writing; and
WHEREAS, establishing a Sister City relationship supports the City's Strategic Plan by advancing the Healthy Communities and Public Safety and Inclusive Governance strategic elements through international cultural exchange, community engagement, and collaboration.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Half Moon Bay that the Mayor and City Manager are hereby authorized to execute a Memorandum of Understanding, in substantially the form attached as Attachment 2 to the July 21, 2026, City Council staff report, establishing a Sister City relationship between the City of Half Moon Bay and the Municipality of Nazaré, Portugal, together with such minor, non-substantive revisions as may be approved by the City Manager and the City Attorney.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 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, City Clerk Debbie Ruddock, Mayor 210
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MEMORANDUM OF UNDERSTANDING

BETWEEN
THE CITY OF HALF MOON BAY AND THE TOWN OF NAZARÉ

SISTER CITY RELATIONSHIP
The City of Half Moon Bay, California, United States of America (“Half Moon Bay”), and the Municipality of Nazaré, Portugal (“Nazaré”), hereinafter referred to individually as a “Party” and collectively as the “Parties,” enter into this Memorandum of Understanding (“MOU”) dated ____________, to formalize a Sister City relationship grounded in shared heritage, mutual respect, and a commitment to strengthening cultural, civic, and community ties between their peoples.

The Parties recognize the deep and enduring connections between their communities, including:
• A shared identity as internationally recognized big-wave surf destinations with global reputations far exceeding their modest size;
• Comparable population size (Half Moon Bay: approximately 12,000 residents; Nazaré:
approximately 15,000 residents) and similar small-town character; • Legacy industries rooted in fishing and maritime traditions, and a shared evolution toward tourism-based economies;
• Strong Portuguese cultural heritage within the Coastside community of Half Moon Bay, reflected in longstanding institutions including the Brotherhood of the I.D.E.S. Society (founded 1871), the Portuguese Cultural Center, and traditions such as the annual Holy Ghost Festival.

The Parties further affirm that the sister city model developed in the spirit of friendship provides a meaningful framework for advancing these shared interests through people-to-people diplomacy and cooperation.

ARTICLE I — PURPOSE AND OBJECTIVES
This MOU establishes a framework for a Sister City relationship between Half Moon Bay and Nazaré.

The purpose of this relationship is to:
• Celebrate and deepen cultural connections between the communities, including shared Portuguese heritage, maritime traditions, and coastal identity; • Foster educational and youth exchanges that expose young people to the history, values, and daily life of a partner community;
• Promote international recognition of both communities as destinations for world-class bigwave surfing and sustainable coastal stewardship; 211
Draft MOU_edit (CAO Edits) 4925-2279-6476 v.1.docx— Sister Cities: Half Moon Bay, California · Nazaré, Portugal — | 2026 • Pursue collaboration on topics of mutual civic interest, including water safety, marine ecology, coastal tourism, and sustainable fisheries;
• Develop public art and place-making projects that symbolize the friendship between the two communities; and
• Facilitate people-to-people connections among residents, civic organizations, cultural institutions, and community leaders.

ARTICLE II — AREAS OF COOPERATION
The Parties intend to collaborate across the following areas, subject to the availability of resources and agreement of both Parties:

2.1 Cultural Exchange and Heritage
• Joint programming celebrating Portuguese cultural heritage, including festivals, exhibitions, and commemorations;
• Coordination of cultural delegations, artist residencies, and heritage events; • Sharing of archival, historical, and cultural materials related to coastal and maritime traditions.

2.2 Youth and Educational Exchange
• Development of a structured youth exchange program, modeled in part on the Half Moon Bay – Kariwa Sister City model, including homestay programs, school partnerships, and student delegations;
• Identification of funding sources to support youth participation, including grants, private donations, and fundraising by a supporting nonprofit organization.

2.3 Big-Wave Surfing and Maritime Heritage
• Coordination between surfing communities, event organizers, and ocean safety professionals in both locations;
• Collaborative promotion of both communities as world-renowned big-wave surfing destinations;
• Joint efforts to preserve and celebrate the maritime and fishing heritage of both communities.
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2.4 Environmental and Marine Stewardship
• Information sharing on coastal resilience, marine ecology, and sustainable fishing communities;
• Potential joint research, conferences, or public programming on ocean health and water safety.

2.5 Public Art and Place-Making
• Exploration of public art installations that reflect the connection between the two communities, such as a compass rose or "four-corners" themed artwork; • Collaboration on the identification, design, and funding of suitable locations for such installations in both cities.

2.6 Civic and Economic Collaboration
• Sharing of best practices in local governance, tourism management, and small-city economic development;
• Promotion of networking opportunities among businesses and institutions from both communities.

ARTICLE III — IMPLEMENTATION AND GOVERNANCE

3.1 Coordinating Bodies
Each Party shall designate a primary liaison responsible for coordinating activities under this MOU.

Half Moon Bay designates the City Manager's Office or its designee. Nazaré shall designate an equivalent municipal officer or representative.

3.2 Supporting Nonprofit Organization
The Parties encourage the formation of a dedicated nonprofit organization to support implementation of this MOU on the Half Moon Bay side. Such an organization shall be led by interested residents and community stakeholders and may coordinate fundraising, community engagement, exchange programming, and public art projects.

3.3 Stakeholder Engagement
Implementation shall involve broad community participation, including:
213
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• The Consulate General of Portugal in San Francisco;
• Educational institutions and youth organizations;
• Government officials and community leaders from both municipalities.

3.4 Communication
The Parties shall communicate regularly to plan and evaluate activities under this MOU. In-person exchanges between officials and community delegations are encouraged where feasible and resources permit.

ARTICLE IV — FINANCIAL PROVISIONS
This MOU does not create a direct financial obligation for either Party. Each Party shall bear its own costs associated with activities conducted under this MOU unless otherwise agreed in writing.

Activities may be funded through:
• Private donations and fundraising by a supporting nonprofit organization; • Grants from foundations, cultural organizations, or governmental entities; • Voluntary contributions from businesses, civic groups, and individuals; • Sponsorship or partnerships with surfing organizations, tourism entities, or cultural institutions.

Any specific joint projects requiring shared financial commitment shall be subject to separate written agreement.

ARTICLE V — TERM, AMENDMENT, AND TERMINATION

5.1 Effective Date and Term
This MOU shall become effective as of the date written above and shall remain in effect for an initial term of five (5) years, automatically renewable for successive five-year terms unless either Party provides written notice of its intent not to renew at least ninety (90) days prior to the expiration of the then-current term.
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5.2 Amendment
This MOU may be amended at any time by mutual written agreement of both Parties.

5.3 Termination
Either Party may terminate this MOU, for any reason, upon ninety (90) days' written notice to the other Party. Termination shall not affect any activities or projects already underway at the time notice is given, unless both Parties agree otherwise.

ARTICLE VI — GENERAL PROVISIONS

6.1 Non-Binding Nature
This MOU reflects the mutual intent and goodwill of the Parties. It is not intended to create, and does not create, legally binding obligations, rights or duties upon either Party beyond the commitments to cooperate and communicate in good faith as set forth herein.

6.2 No Agency
Nothing in this MOU shall be construed to create a partnership, joint venture, agency, or employment relationship between the Parties.

6.3 Governing Language
This MOU shall be executed in both English and Portuguese. In the event of any conflict or ambiguity between the two versions, the English version shall govern.

6.4 Counterparts
This MOU may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

SIGNATURES
IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this Memorandum of Understanding as of the date first written above. 215
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__________________________________________________
Mayor
Municipality of Nazaré, Portugal

FOR THE CITY OF HALF MOON BAY,

CALIFORNIA, UNITED STATES OF AMERICA
__________________________________________________
Mayor
City of Half Moon Bay
__________________________________________________
City Manager
City of Half Moon Bay
ATTEST
_______________________________________
Maggie Rodriguez, City Clerk

APPROVED AS TO FORM
_______________________________________
Denise S. Bazzano, City Attorney
216
City Council Meeting
June 16, 2026
217

SISTER CITIES PROPOSAL
Half Moon Bay, California
&
Nazaré, Portugal
A Proposal to the Mayor and City Council of Half Moon Bay 218

MEET THE TWO CITIES
Half Moon Bay, CA
Population: ~13,000
Coast: Pacific Ocean
Known for: Pumpkins, artichokes, world-class surf
Heritage: Strong Portuguese-American roots
Economy: Small-scale farming, fishing, tourism
Surf: Mavericks — one of the biggest breaks on Earth
Nazaré, Portugal
Population: ~10,000
Coast: Atlantic Ocean
Known for: Fishing, folklore, massive surf
Heritage: Ancient seafaring traditions
Economy: Fishing, agriculture, growing tourism
Surf: Home of the world's largest waves ever surfed
219

SHARED PORTUGUESE HERITAGE
Half Moon Bay's Portuguese Connection
Portuguese immigrants — primarily from the Azores — were among the earliest European settlers in Half Moon Bay, arriving in the mid-1800s.

Many founding families in the region were Portuguese fishermen and farmers who built the coastal economy.

Portuguese cultural traditions including the Holy Ghost Festival (Festa do Espírito Santo) are still celebrated in Half Moon Bay today.

Nazaré, Portugal shares the same deep Atlantic seafaring heritage — its fishermen are legendary, and their traditions mirror those brought to California.

A sister city bond would honor and celebrate this shared ancestry — connecting descendants back to their roots. 220
BIG WAVE SURFING: A BOND LIKE NO OTHER

MAVERICKS
Half Moon Bay, CA
One of the most feared big-wave breaks in the world. In December 2024, surfer Alo Slebir rode an estimated 76-foot wave at Mavericks — with some measurements placing it
as high as 108 feet, potentially surpassing Nazaré’s world record. Half Moon Bay is now at the center of the big-wave conversation.

PRAIA DO NORTE
Nazaré, Portugal
Home of the world's largest waves ever surfed — 100-foot swells fueled by an underwater canyon. Nazaré is THE name in big-wave surfing across the globe.

Big Wave Ambassadors — The Human Connection
We have connected with multiple big wave surfers from around the world and are actively working to secure an ambassador to represent and champion the bond between our two surf communities. This ambassador will serve as a living bridge between Half Moon Bay and Nazaré — two towns united by the ocean’s greatest waves. 221
PARALLEL COMMUNITIES — PARALLEL SPIRIT
Small Farming Communities
Both cities are defined by small, family-run
farms. Half Moon Bay is famous for
pumpkins and artichokes; Nazaré for olives,
grapes, and produce. Agriculture is part of
our identity.

Fishing Heritage
Fishing has sustained both communities for
generations. Half Moon Bay's harbor and
Nazaré's famous fishing beach (where oxen
once pulled boats ashore) reflect identical
coastal economies.

Similar Population
Half Moon Bay (~13,000) and Nazaré
(~10,000) are intimate, small coastal towns.

Not big cities — real communities where
neighbors know each other by name.

Coastal Identity
Both towns were built around the ocean.

The sea shapes the culture, the economy,
the food, and the spirit of the people in
both Half Moon Bay and Nazaré.

Cultural Overlap
From the Holy Ghost Festival in Half Moon
Bay to Nazaré's traditional fishermen
festivals — both communities celebrate
their maritime and Iberian roots with pride.

Shared Values
Community, tradition, the land, the sea.

These shared values make a sister city
relationship not just symbolic — but
meaningful, natural, and lasting.
222
TOURISM: THE ECONOMIC OPPORTUNITY
A sister city relationship with Nazaré would deliver tangible, measurable tourism benefits to Half Moon Bay:

International Profile
Nazaré attracts millions of viewers annually through big wave surf contests broadcast worldwide. A formal sister city link puts Half Moon Bay on that global stage.

Cross-Atlantic Visitors
Portuguese tourists, surfers, and travelers already visiting Nazaré become a natural new audience for Half Moon Bay — and vice versa.

Media Opportunities
Joint events, exchange programs, and the Garrett McNamara connection create compelling stories for travel media, surf media, and international press.

New Annual Events
A sister city bond opens the door to joint surf festivals, cultural exchanges, and cross-promotional tourism campaigns between the two cities.

Local Business Growth
More visitors means more revenue for local restaurants, hotels, shops, and farms — directly supporting Half Moon Bay's small business economy. 223

A CALCADA COMPASS ROSE FOR HALF MOON BAY
Portuguese Calçada Installation — Main St & Correas St, Half Moon Bay The Proposal
We propose the installation of a traditional Portuguese Calçada compass rose — hand-laid stone mosaic — embedded in the center of the intersection of Main Street and Correas Street in downtown Half Moon Bay.

The compass rose will span all four crosswalk quadrants — a permanent, living tribute to our sister city bond with Nazaré, Portugal. • Traditional Portuguese hand-laid stone mosaic — black basalt and white limestone
• Compass rose design (Rosa dos Ventos) spanning the full intersection • Stones and artisans to be arranged through negotiation with Nazaré — Calçada has been gifted across California as part of sister city traditions • A permanent landmark honoring Half Moon Bay’s Portuguese heritage and sister city bond
• A destination that draws visitors and puts Half Moon Bay on the cultural map
Key Details
Location
Main St & Correas St
Half Moon Bay, CA
Purpose
Calçada compass rose installation & cultural
landmark
Theme
Ancient Portuguese art form + sister city
heritage
Benefit
Beautify downtown, honor history, attract
visitors worldwide
224
CALCADA — THE ART OF THE PORTUGUESE COMPASS
ROSE
An ancient Portuguese art form — a living tradition already gifted to California communities through sister city partnerships
Praca de Cascais — Sausalito, CA | Plaza overview with
dedication plaque
Dedication ceremony — Prime Minister of Portugal attended | 2018
Calçada has been gifted to California communities multiple times — we propose to bring this tradition to Half Moon Bay
225
PROPOSED LOCATION — MAIN ST & CORREAS ST,

HALF MOON BAY
★ PROPOSED

CALCADA
ROSE
The Proposal
Install a traditional Portuguese Calçada
compass rose at the intersection of Main Street
and Correas Street in downtown Half Moon
Bay.

What is Calçada?
An ancient Roman-origin art form perfected by
the Portuguese — hand-laid stone mosaic using
black basalt and white limestone to create
intricate patterns, most famously the compass
rose (Rosa dos Ventos).

The Vision
Embedded in the center of the intersection —
spanning all four crosswalk quadrants — a
permanent, beautiful symbol of the Half Moon
Bay & Nazaré sister city bond. Stones and
artisans to be arranged through partnership
negotiation with Nazaré, Portugal. Aerial view: Main St & Correas St, Half Moon Bay — proposed compass rose location marked
A permanent landmark at the heart of downtown — honoring our Portuguese heritage and sister city bond226 STRONG SUPPORT — DIA DE PORTUGAL, JUNE 8 ,
2026
San Francisco City Hall illuminated in the colors of Portugal — our project has the full support of the Mayor of San Francisco, the Consul General of Portugal, and the Secretary of State for the Economy of Portugal Mayor of San Francisco addressing dignitaries at
Dia de Portugal Our team with dignitaries — SF City
Hall lit in Portuguese colors
San Francisco City Hall illuminated for Dia de
Portugal
Mayor of San Francisco — Full support for the Half Moon Bay – Nazaré Sister City Initiative Consul General of Portugal, San Francisco — Met June 8th, 2026 at Dia de Portugal celebration (relationship began last year at his home)
Secretary of State for the Economy of Portugal — Present at the June 8th, 2026 celebration Mayor of Nazaré — Committed to the deal; met with our team in early 2026. Nazaré dignitaries are awaiting Half Moon Bay’s response
The momentum is real — Nazaré is waiting — the time is now 227

THE ASK
We Ask the Mayor & City Council of Half Moon Bay to
Approve a Sister City Partnership with Nazaré, Portugal Step 1 Pass a resolution supporting the sister city designation Step 2 Establish a Half Moon Bay–Nazaré Sister City Committee — already forming, with active Portuguese Americans on the Half Moon Bay side committed and ready Step 3 Begin formal outreach to Nazaré city officials
Step 4 Plan inaugural exchange event & park groundbreaking on Main Street Step 5 Announce partnership & launch joint tourism initiatives Two towns. Two oceans. A shared soul. Let’s make history together. 228

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director Dale Leda, Interim Public Works Director
TITLE: FISCAL YEAR 2026-27 SEWER SERVICE CHARGES AND ASSESSMENTS RECOMMENDATION:

Adopt a resolution approving the Fiscal Year 2026-27 Sewer Service Assessments and charges, directing staff to file the assessment roll, authorizing the County Controller to place the assessment charges on the County of San Mateo Property Tax Roll, and directing staff to bill assessments directly that are not on the tax roll.

FISCAL IMPACT:

If adopted, the FY 2026-27 sewer service charges will continue to be assessed at the same rates adopted through the City's prior sewer rate study and Proposition 218 process. The rates adopted for Fiscal Years 2020-21 through 2024-25 remain in effect until completion of the City's updated sewer rate study.

The FY 2026-27 assessments are projected to generate $7,500,027 in revenue, which will be deposited into the Sewer Fund. The Sewer Fund is used to support sewer operations, maintenance, capital improvements, debt obligations, and the City's share of costs associated with regional wastewater treatment through SAM. In FY 2026-27, the City's payments to SAM are budgeted at approximately $7.3 million, while an additional $2 million supports local sewer maintenance and indirect staffing costs, for total budgeted operating expenditures of $9.3 million.

STRATEGIC ELEMENT:

This recommendation supports the Fiscal Sustainability and Inclusive Governance elements of the City’s Strategic Plan.

BACKGROUND:

The City owns, operates, and maintains its wastewater collection system, which includes approximately 35 miles of gravity sewer lines, three pump stations, and three force mains. 229
Wastewater collected throughout the City is conveyed to the regional wastewater treatment plant operated by the Sewer Authority Mid-Coastside (SAM).

SAM is a Joint Powers Authority formed by the City of Half Moon Bay, Granada Community Services District, and Montara Water and Sanitary District to provide regional wastewater treatment services. Under the Joint Powers Agreement, the City is responsible for approximately 61% of SAM's operations, maintenance, and capital costs based on its proportional share of system flows.

The City's Sewer Fund is supported primarily through sewer service charges paid by customers.

These revenues fund operation and maintenance of the City's collection system, the City's share of SAM costs, capital repair and replacement projects, and required operating reserves. Under California law, sewer revenues may only be used for sewer-related purposes.

In June 2020, following completion of a Proposition 218 rate study and protest hearing, the City Council adopted sewer service charges for Fiscal Years 2020-21 through 2024-25. Those rates have remained in effect through FY 2026-27 while the City prepares an updated rate study.

Since the 2020 rate study, the cost of providing sewer service has continued to increase. SAM operating and capital costs have risen, infrastructure throughout both the City's collection system and regional treatment facilities continues to age, and inflation has increased the cost of maintenance, construction, and capital improvements. Existing rates have been maintained while the Sewer Fund has relied on available cash balances to manage increasing costs pending completion of an updated rate study.

To address these changing conditions, the FY 2026-27 Budget includes funding for a comprehensive sewer rate study. The study will evaluate the financial condition of the Sewer Fund, projected operating and capital needs, and recommend sewer service charges necessary to maintain the long-term sustainability of the utility while complying with Proposition 218.

DISCUSSION:

The proposed FY 2026-27 sewer assessments continue the sewer service charges adopted through the City's 2020 Proposition 218 rate study. Because the updated sewer rate study has not yet been completed, the FY 2026-27 assessments remain unchanged from the FY 2024-25 levels.

Sewer service charges fund the operation, maintenance, repair, and replacement of the City's wastewater collection system, as well as the City's proportional share of SAM operations and capital improvements. These costs have continued to increase due to inflation, aging infrastructure, higher treatment costs, and increased construction and capital project costs.

The single-family residential rate remains at $1,344. The table below summarizes the sewer service charges for all residential classes.
230
Classes of Premises 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 Residential/Mobile Home/ Retirement Per Account or Unit Per Year Residential Single Family $ 936 $ 1,056 $ 1,188 $ 1,344 $ 1,344 $ 1,344 Residential Single Family w/ADU 1,380 1,560 1,752 1,980 1,980 1,980 Residential Multiple Family 936 1,056 1,188 1,344 1,344 1,344 Mobile Home 576 648 732 828 828 828
Senior Apartments 576 648 732 828 828 828
The rates for nonresidential classes and detailed discussion of the rate setting process can be found in the City Clerk archives for City Council agendas and packets for March 17, 2020, April 7, 2020, and June 2, 2020. Additional background can be found on the City’s website.1 The City of Half Moon Bay collects sewer service revenues in two ways:

1. Property owners' sewer assessments are added to the tax roll by the San Mateo County Tax Collector (pursuant to Section 5473 of the Health and Safety Code of the State of California). This year, individual assessments of 3,300 parcels are projected to generate $7,183,457.96 in revenues which will be forwarded to the City of Half Moon Bay as part of the San Mateo County tax roll collection.

2. The City also directly bills property owners who are connected to the City sewer system but are not included in the City of Half Moon Bay’s assessments which are collected through the San Mateo County Property Tax Roll. This applies to unassessed government properties and to properties outside of Half Moon Bay city limits that use the City’s sewer system. Another $316,569.36 in revenue is projected by billing 172 properties directly.

Staff recommends that the City Council direct staff to file the assessment roll; authorize the County Controller to place the assessment charges on the San Mateo County Property Tax Roll this year; and direct staff to bill sewer users directly if they are not assessed on the tax roll.

The FY 2024–25 sewer assessment represented the final scheduled rate adjustment under the 2020 Sewer Rate Study. For FY 2026–27, rates remain unchanged, as no new study had yet been completed. A new sewer rate study is budgeted for this fiscal year to evaluate future funding needs, including anticipated increases in SAM costs and deferred capital improvements. Staff will return to the City Council with findings and recommendations based on the results of the study.

ATTACHMENT:

Resolution adopting FY 2026-27 Sewer Service Charges
1 See https://www.half-moon-bay.ca.us/680/2020-Sewer-Rate-Adjustments 231
RESOLUTION NO. C-2026-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ADOPTING THE FISCAL YEAR 2026-27 SEWER SERVICE CHARGES FOR PROPERTIES SERVED BY THE HALF MOON BAY

SANITARY SEWER SYSTEM
WHEREAS, the City of Half Moon Bay is a public entity that owns and operates a sanitary sewer system; and
WHEREAS, Article XIIID of the California Constitution specifically authorizes a wastewater system service provider to adopt wastewater system service fees for its customers that do not exceed the cost of providing the service and are proportionate to the cost of service for all customers; and
WHEREAS, the City of Half Moon Bay funds sewer operations via sewer service charges; and WHEREAS, the City is committed to maintain its sewer system to ensure protection of the public health and safety; and
WHEREAS, the Sewer Authority Mid-Coastside (SAM) has identified significant infrastructure needs that could exceed $50 million over the next 5-10 years; and WHEREAS, the City, as a member of SAM, is obligated to pay a proportional share of SAM operational and maintenance costs to ensure proper conveyance and treatment of wastewater; and
WHEREAS, without update of the current rates, the City does not have the financial resources needed to fund operations or continue upgrades of the City’s system and the SAM treatment plant and Intertie Pipeline System; and
WHEREAS, pursuant to Section 5473 of the California Health and Safety Code, the City Council received and duly considered a report of sewer service charges covering Fiscal Years (FY) 2020-21 through 2024-25, computed in conformity with a Sewer Service Rate Study prepared by Municipal Financial Services (MFS); and
WHEREAS, on June 2, 2020, the City Council held a public protest hearing and upon not receiving a majority protest adopted new sewer charges for FY 2020-21, FY 2021-22, FY 2022- 23, FY 2023-24 and FY 2024-25; and
WHEREAS, on June 2, 2020, the City Council introduced and subsequently on June 16 adopted revisions to the Half Moon Bay Municipal Code, Title 13 to implement City Council approved residential flat rate structure and related revisions; and 232
WHEREAS, the Half Moon Municipal Code establishes sewer fee collection via the San Mateo County Tax Roll; and
WHEREAS, the Fiscal Year 2026-27 sewer service assessments reflect no increase from the prior year, as FY 2024–25 was the final scheduled rate adjustment under the 2020 Sewer Rate Study.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of Half Moon Bay hereby adopts the sanitary sewer service summary entitled, "City of Half Moon Bay – FY 2026-27 Sanitary Sewer Assessments Summary" totaling $7,500,027.32 included as Exhibit A and that the City Council hereby directs staff to:
1) File the FY 2026-27 assessment roll for the City of Half Moon in the amount of $7,183,457.96;
2) Authorize the County Controller to place these assessment charges on the County of San Mateo County Property Tax Roll; and
3) Bill $316,569.36 for the 172 directly billed properties for assessments not included on the tax roll.

I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 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, City Clerk Debbie Ruddock, Mayor
233
Exhibit A
City of Half Moon Bay
FY 2026-27 Sanitary Sewer Assessments Summary
-----
San Mateo County Property Tax Roll and Half Moon Bay Manual Billing Assessments San Mateo County Property Tax Roll Sanitary Sewer Assessments for City of Half Moon Bay Half Moon Bay Sanitary Sewer Service Charges
Assessment/Charge Code: 721S
Total Number of Parcels Assessed: 3,300
Total Dollar Assessment: $7,183,457.96
Lowest Parcel Assessment $298.00
Highest Parcel Assessment $392,315.92
Person Responsible for Submitting the Data: Kenneth Stiles City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Phone: 650-435-8257
Fax: 650-726-4550
Email: [email protected]
Tax Payer Contact: Margaret Jeanne Geiger
650-459-5517
Person Responsible for Review and Sign Off the Proof List: Matthew Chidester Email: [email protected]
Sanitary Sewer Assessments Manual Billing Summary for the City of Half Moon Bay Class Type Total (Grouped by Class)
Commercial (6 parcels) $31,522.88
Recreational (4 parcels) $68,032.48
Residential (160 Parcels) $215,040.00
School (2 parcels) $1,974.00
Total Manual Billing Assessments (172 Parcels) $316,569.36 FY 2026-27 Sanitary Sewer Assessments for City of Half Moon Bay Total Sewer Assessments on SM County Property Tax Roll $7,183,457.96 Sewer Assessments Manual Billings $316,569.36
Total FY 2026-27 Half Moon Bay Sanitary Sewer Assessments $7,500,027.32 234
Staff Report to Consider Putting Referendum on the Ballot 4916-6032-2747 v.2.doc

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
FROM: Maggie Rodriguez, City Clerk
VIA: Matthew Chidester, City Manager
TITLE: CITY CLERK’S CERTIFICATION OF THE REFERENDUM PETITION AGAINST ORDINANCE NO. 2026-01 (RELATING TO THE 555 KELLY AVENUE PROJECT) AND COUNCIL CONSIDERATION OF SUBMISSION OF ORDINANCE NO. 2026-01 TO HALF MOON BAY VOTERS PURSUANT TO ELECTIONS CODE SECTION 9240 ______________________________________________________________________________ RECOMMENDATION:

Consider City Clerk’s Certification of the results of the examination of the referendum petition against Ordinance No. 2026-01 and pursuant to Elections Code section 9241 take one of the following actions:
1) Adopt a resolution to submit Ordinance No. 2026-01 to the voters on the November 3, 2026, general municipal election; or
2) Direct staff to prepare an ordinance to repeal Ordinance No. 2026-01 in its entirety.

FISCAL IMPACT:

The cost of placing a measure on the November 3, 2026, ballot is approximately $10,000.

Repealing Ordinance No. 2026-01 would have a minimal direct fiscal impact in that there would be some staff time in preparing an ordinance to repeal Ordinance No. 2026-01.

STRATEGIC ELEMENT:

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

BACKGROUND:

On May 5, 2026, the City Council voted 3-2 to approve Ordinance No. 2026-01, which approves, among other things, a set of legal agreements between the City and Mercy Housing California 110, L.P., a limited partnership affiliated with Mercy Housing California, a California nonprofit public benefit corporation. Specifically, Ordinance No. 2026-01 approves four Agreements, which are summarized below:
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(1) Affordable Housing and Property Disposition Agreement. This is an agreement between the City and Developer that would control during the pre-development period and establishes conditions precedent that must be met by the Developer in order for the Developer to be allowed to enter into the Ground Lease for the City-owned land at 535 and 555 Kelly Avenue (APNS: 056-150-220 (Partial) and 056-150-200) (“Property”) for the development of affordable housing for senior agricultural workers and 2,653 square feet of community serving space.
(2) Ground Lease of the Property. The Ground Lease would be for a term of 99 years at a rate of $1 per year. The Ground Lease also includes a number of terms and conditions that would govern the use of the Property, including but not limited to, provisions regarding the use of the community serving space.
(3) Memorandum of Ground Lease. This is an agreement between the City and Developer that is recorded against the Property and alerts any interested parties of the existence of the Ground Lease and how to obtain a copy of the Ground Lease. (4) Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants.

This is an agreement between the City and Developer that includes a number of terms and conditions including, but not limited to, requirements relating to the affordability levels of the housing units. This agreement is required to be recorded against the Property.

More information can be found about Ordinance No. 2026-01 and the meetings that were held prior to adoption of Ordinance No. 2026-01 at the City’s website regarding the 555 Kelly project.

On May 8, 2026, the City received a Submission of Proposed Impartial Summary for Referendum Petition Against Ordinance 2026-01 filed on behalf of “Let Half Moon Bay Voters Decide”. Pursuant to Elections Code section 9238(b)(2)(B)(ii), the City Attorney’s Office reviewed the submitted summary, made revisions and issued an approved Summary of Referendum on May 18, 2026, which was then circulated for signatures.

On Tuesday, June 16, 2026, a referendum petition against Ordinance No. 2026-01 was filed with the City Clerk on behalf of “Let Half Moon Bay Voters Decide”. The referendum petition challenges Ordinance No. 2026-01 in its entirety.

Pursuant to Elections Code sections 9239 and 9210, the City Clerk conducted a prima facie examination to confirm that the number of signatures met the minimum signature threshold of at least 10% of the City’s voters to qualify the measure for the ballot. The City Clerk submitted the petition to the County Elections Office on June 17, 2026, to verify the signatures. The San Mateo County Elections Office reviewed the signatures and on June 30, 2026, notified the City Clerk that the County determined that of the 1,092 signatures submitted, 843 were examined and 782 were verified as valid signatures of Half Moon Bay registered voters. The proponents needed to obtain 10% of registered voters in Half Moon Bay (8,064 registered voters). The San Mateo County Elections Office verified the signatures based on a statistical sampling showing 236
that the number of valid signatures is within 95% to 110% of the number needed to declare the petition sufficient.

Based on the County’s verification, the City Clerk has certified the results of the examination of the referendum petition against Ordinance No. 2026-01 and determined that it contains at least 10% of the registered voters of the City.

DISCUSSION:

California Elections Code section 9241 provides that if a referendum petition containing the signatures of not less than 10% of the registered voters of the City is submitted, the ordinance that is the subject of the petition is suspended and the City Council must reconsider the ordinance to determine whether to 1) submit the ordinance to the voters or 2) repeal the ordinance.

Elections Code section 9241 provides the following process:

If the legislative body does not entirely repeal the ordinance against which the petition is filed, the legislative body shall submit the ordinance to the voters, either at the next regular municipal election occurring not less than 88 days after the order of the legislative body, or at a special election called for the purpose, not less than 88 days after the order of the legislative body. The ordinance shall not become effective until a majority of the voters voting on the ordinance vote in favor of it. If the legislative body repeals the ordinance or submits the ordinance to the voters, and a majority of the voters voting on the ordinance do not vote in favor of it, the ordinance shall not again be enacted by the legislative body for a period of one year after the date of its repeal by the legislative body or disapproval by the voters.

Since the next municipal election is set to be held on November 3, 2026, which is more than 88 days away, the City Council can submit Ordinance No. 2026-01 to the voters at the November 3, 2026, election.

Thus, the City Council must decide whether to submit Ordinance No. 2026-01 to the voters or repeal Ordinance No. 2026-01.

If the Council decides to submit Ordinance No. 2026-01, a majority of voters (50% plus 1) would have to vote in favor of it for Ordinance No. 2026-01 to become effective. If a majority of voters do not vote in favor of Ordinance No. 2026-01, then Ordinance No. 2026-01 would not become effective and could not be reenacted by the Council for a period of one year after the date of disapproval by the voters.

If the Council decides to repeal Ordinance No. 2026-01, it could not be reenacted by the Council for a period of one year after the date of its repeal.
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ATTACHMENTS:

1. Resolution

2. Certification of Results by Clerk
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Resolution No. C-2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING PLACING A MEASURE ON THE NOVEMBER 3, 2026, GENERAL ELECTION BALLOT SEEKING VOTER APPROVAL OF ORDINANCE 2026-01 AND AUTHORIZING RELATED ACTIONS WHEREAS, on May 5, 2026, the City Council approved Ordinance No. 2026-01 entitled:
“AN ORDINANCE OF THE CITY OF HALF MOON BAY APPROVING THE AFFORDABLE HOUSING

AND PROPERTY DISPOSITION AGREEMENT, GROUND LEASE OF REAL PROPERTY FOR A TERM OF 99 YEARS, MEMORANDUM OF GROUND LEASE, AFFORDABLE HOUSING REGULATORY

AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS AND OTHER ANCILLARY AGREEMENTS BETWEEN THE CITY OF HALF MOON BAY AND MERCY HOUSING CALIFORNIA 110, L.P. FOR THE SENIOR AFFORDABLE 40-UNIT RESIDENTIAL PROJECT FOR AGRICULTURAL WORKERS, LOCATED AT 535 AND 555 KELLY AVENUE (APNS: 056-150-220 (PARTIAL) AND 056- 150-200), INCLUDING 2,653 SQUARE FEET OF COMMUNITY SERVING SPACE; AUTHORIZING THE

CITY MANAGER TO EXECUTE THE AGREEMENTS AND TAKE OTHER ACTIONS NECESSARY TO IMPLEMENT THE FOREGOING AGREEMENTS; AND FINDING THE APPROVAL OF THE

AGREEMENTS AND RELATED ACTIONS EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15332 (INFILL PROJECTS)” (Hereinafter referred to as “Ordinance”); and WHEREAS, the Ordinance, among other things, approves a set of legal agreements between the City and Mercy Housing California 110, L.P., a limited partnership affiliated with Mercy Housing California, a California nonprofit public benefit corporation; and WHEREAS, on Tuesday, June 16, 2026, a referendum petition against Ordinance No. 2026-01 was filed with the City Clerk on behalf of “Let Half Moon Bay Voters Decide” based on a summary of Ordinance No. 2026-01 that was approved by the Interim City Attorney and circulated for signatures; and
WHEREAS, the referendum petition challenges Ordinance No. 2026-01 in its entirety and seeks either repeal of Ordinance No. 2026-01 or submission of Ordinance No. 2026-01 to the voters; and
WHEREAS, pursuant to Elections Code sections 9239 and 9210, the City Clerk conducted a prima facie examination to confirm that the number of signatures met the minimum signature threshold of at least 10% of the City’s voters to qualify the measure for the ballot and submitted the petition to the County Elections Office to verify the signatures; and WHEREAS, the San Mateo County Elections Office reviewed the signatures and on June 30, 2026, notified the City Clerk that the County determined that of the 1,092 signatures submitted, 843 were examined and 782 were verified as valid signatures of Half Moon Bay registered voters; and
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WHEREAS, the proponents needed to obtain 10% of registered voters in Half Moon Bay (8,064 registered voters) and the San Mateo County Elections Office verified the signatures of at least 10% of registered voters in the City based on a statistical sampling showing that the number of valid signatures is within 95% to 110% of the number needed to declare the petition sufficient; and
WHEREAS, based on the County’s verification, the City Clerk Certified the petition and presented it to the City Council on July 21, 2026; and
WHEREAS, the referendum petition against Ordinance No. 2026-01 filed on behalf of “Let Half Moon Bay Voters Decide” has qualified and Ordinance No. 2026-01 has been suspended pursuant to Elections Code section 9237; and
WHEREAS, pursuant to Elections Code sections 9241, the City Council must reconsider Ordinance No. 2026-01 and if the City Council does not entirely repeal Ordinance No. 2026-01 it must submit it to the voters; and
WHEREAS, the City Council previously called a General Municipal Election to be held on November 3, 2026, for the election of City officials and the submission of a ballot measure to the City’s qualified voters and, further requested the San Mateo Board of Supervisors to consent and agree to the consolidation of the General Municipal Election with the Statewide General Election to be held on the same date; and
WHEREAS, the City Council is authorized by Elections Code section 9241 to submit the proposed ordinance to the voters, and on July 21, 2026, directed that the matter be submitted to voters at the general municipal election consolidated with the statewide general election to be held on November 3, 2026.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby resolves, declares, determines and orders as follows:

SECTION 1. Ordinance No. 2026-01. The City Council hereby approves the submission of Ordinance No. 2026-01, as set forth in Exhibit A, to the voters of the City of Half Moon Bay at the November 3, 2026, general municipal election. The City Clerk may determine that the entire text of Ordinance No. 2026-01 cannot be printed on the ballot, nor in the voter information guide and if that is the case, pursuant to Elections Code section 9280, there shall be printed immediately below the impartial analysis, in no less than 10-point bold type, a legend substantially as follows:
“The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the elections official's office at (insert telephone number) and a copy will be mailed at no cost to you.” 240
SECTION 2. 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, seeking voter approval of Ordinance No. 2026-01 for the purpose of submitting the following question to the voters (“Measure”):

Shall Ordinance No. 2026-01, approving agreements with Mercy Housing California 110, L.P. (including a Ground Lease of Real Property for a 99-year term and Affordable Housing and Property Disposition Agreement) that provide for the development/operation of a Senior Affordable 40-Unit Residential Project for Agricultural Workers, which includes 2,653-square foot Community Serving Space, to be located at 535-555 Kelly Avenue in the City of Half Moon Bay, and authorizing other related actions, be adopted? YES
NO
(b) As the City Council by Resolution No. 2026-36, 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. Pursuant to Elections Code section 9280, the City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the 241
effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk. The City Clerk may determine that the entire text of Ordinance No. 2026-01 cannot be printed on the ballot, nor in the voter information guide and if that is the case, pursuant to Elections Code section 9280, there shall be printed immediately below the impartial analysis, in no less than 10-point bold type, a legend substantially as follows:
“The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the elections official's office at (insert telephone number) and a copy will be mailed at no cost to you.” 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 section 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 sections 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.
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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. In accordance with Elections Code Sections 9281 to 9287, primary arguments in favor or against the Ordinance may be submitted to the City Clerk by August 10, 2026, at 5:00 p.m. Rebuttal arguments may be submitted to the City Clerk by August 17, 2026, at 5:00 p.m. 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. In the event multiple arguments are submitted, the City Clerk shall select an argument using the priorities set forth in Elections Code Section 9287, choosing at random within the most senior priority submitted if multiple arguments sharing priority are submitted.

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.

J. This Section 11 shall supersede all other conflicting sections of other resolutions, which may have been adopted by the City Council specifically relating to primary and rebuttal arguments submitted pursuant to Elections Code sections 9280 et seq.

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 21st day of July 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:
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NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
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CITY OF HALF MOON BAY

CERTIFICATE OF SUFFICIENCY OF REFERENDUM PETITION
ORDINACE NO. 2026-01
I, Maggie Rodriguez, City Clerk of the City of Half Moon Bay, County of San Mateo, State of California, hereby certify that:

The Referendum entitled City of Half Moon Bay Ordinance No. 2026-01 was filed with the City Clerk Department on June 16, 2026.
"AN ORDINANCE OF THE CITY OF HALF MOON BAY APPROVING THE AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT, GROUND LEASE OF REAL PROPERTY FOR A TERM OF 99 YEARS, MEMORANDUM

OF GROUND LEASE, AFFORDABLE HOUSING REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE

COVENANTS AND OTHER ANCILLARY AGREEMENTS BETWEEN THE CITY OF HALF MOON BAY AND MERCY HOUSING CALIFORNIA 110, L.P. FOR THE SENIOR AFFORDABLE 40-UNIT RESIDENTIAL PROJECT FOR AGRICULTURAL WORKERS, LOCATED AT 535 AND 555 KELLY AVENUE (APNS: 056-150-220 (PARTIAL) AND 056-150-200), INCLUDING 2,653 SQUARE FEET OF COMMUNITY SERVING SPACE; AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENTS AND TAKE OTHER ACTIONS NECESSARY TO IMPLEMENT THE FOREGOING AGREEMENTS; AND FINDING THE APPROVAL OF THE AGREEMENTS AND RELATED ACTIONS

EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15332 (INFILL PROJECTS) ”
That said petition consists of 101 sections;
That each section contains signatures purporting to be signatures of qualified electors of the City of Half Moon Bay, California;
That attached to this referendum petition at the time it was filed, was an affidavit purporting to be the affidavit of the person who solicited the signatures, and containing the dates between which the purported qualified electors signed this petition;
That the affiant stated his or her own qualification, that he or she had solicited the signatures upon that Section, that all of the signatures were made in his or her presence, and that to the best of his or her own information and belief, each signature to that section was the genuine signature of the person whose name it purports to be;
That after the proponents filed this petition and based on the County of San Mateo Registrar of Voters, I have determined the following facts regarding this petition:
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1. Total number of signatures filed: 1092

2. Number of signatures examined:843

3. Total number of signatures needed: 810

4. Number of signatures found sufficient:782

5. Number of signatures found not sufficient:61
Based on the above, the Petition is deemed to be sufficient.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Half Moon Bay this 1st day of July 2026.
____________________________
Maggie Rodriguez
City Clerk
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director Dale Leda, Interim Public Works Director
TITLE: REQUEST FOR PROPOSALS FOR SEWER RATE STUDY AND ADOPTION OF RATE SETTING PROCEDURES UNDER PROPOSITION 218 AND ASSEMBLY BILL 2257 RECOMMENDATION:

Adopt resolutions to

1. Authorize a Professional Services Agreement with Kirsch & Associates for project management support in an amount not to exceed $30,000;

2. Authorize Release of a Request for Proposals for professional sewer rate study services; and

3. Establish sewer rate setting procedures under Proposition 218 and Assembly Bill 2257 FISCAL IMPACT:

Approval of the Professional Services Agreement with Kirsch & Associates authorizes expenditures not to exceed $30,000 from the Sewer Fund. Additionally, Staff estimates the professional sewer rate study will cost approximately $50,000 and is included in the adopted FY 2026-27 Sewer Fund budget. No additional appropriation is requested.

STRATEGIC ELEMENT:

This recommendation supports the Fiscal Sustainability and Inclusive Governance elements of the City’s Strategic Plan.

BACKGROUND:

The City has one enterprise fund, the Sewer Fund. The Sewer Fund accounts for the cost of providing wastewater services to Half Moon Bay residents, businesses, and other sewer customers. The fund is supported directly by sewer service charges paid by ratepayers.

Wastewater service involves both collection and treatment. The City owns and maintains the local sewer collection system, including the sewer lines and related infrastructure that collect and convey wastewater from properties in the City’s service area. 247
Treatment is provided through the Sewer Authority Mid-Coastside, commonly referred to as SAM. SAM is a joint powers authority made up of the City of Half Moon Bay, Granada Community Services District, and Montara Water and Sanitary District. SAM owns and operates the regional wastewater treatment plant.

As a result, sewer service charges support both the City’s local collection system and the City’s proportional share of SAM costs. These costs include operations, maintenance, capital improvements, treatment, and other sewer-related obligations.

The City’s last sewer rate study was completed in 2020 and adopted rates through Fiscal Year 2024-25. Since then, the sewer rates have remained flat for Fiscal Years 2025-26 and 2026-27.

The City is preparing to begin an updated sewer rate study to review current and future sewer costs, revenue needs, and potential rate options. Any new or increased sewer rates must comply with Proposition 218.

DISCUSSION:

Prior Rate Study and Current Cost Pressures
The City last completed a sewer rate study in 2020. Following that study and the required Proposition 218 process, the City Council adopted sewer rates for Fiscal Years 2020-21 through 2024-25. Those rates were designed to fund sewer operations, capital improvements, SAM obligations, and the long-term financial sustainability of the Sewer Fund.

Since that time, the cost of providing sewer service has continued to increase. These increases include inflationary pressures, higher treatment costs, aging infrastructure, capital repair and replacement needs, and continued SAM-related obligations. The City has kept sewer rates flat for Fiscal Years 2025-26 and 2026-27, but the underlying cost of providing wastewater service has continued to increase.

In recent years, the Sewer Fund has used available cash balances to help manage the difference between rate revenues and total sewer-related cash outlays. Capital spending was also lower in Fiscal Years 2023-24 and 2024-25, which helped reduce the annual gap in the short term.

However, the City must still plan for ongoing operations, SAM obligations, and future capital repair and replacement needs.

The following table summarizes the Sewer Fund’s revenue and cash outlay trends over the last ten-year period.
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SAM Litigation and Cost Obligations
The City has also been involved in litigation related to the Sewer Authority Mid-Coastside Joint Powers Authority and the allocation of costs for regional wastewater infrastructure. The dispute focused on responsibility for costs associated with the Intertie Pipeline System, which conveys wastewater from Granada and Montara to the SAM treatment plant in Half Moon Bay.

Ultimately, the City did not prevail in the litigation and is responsible for a large portion of the costs of this upcoming project. The total project cost is currently estimated to be between $13 million and $16 million, of which the City's share is estimated to be between $8 million and $10 million. This is an important cost driver for the Sewer Fund. The City’s sewer cost increases are not simply the result of local operations or the City’s own collection system. Under the current JPA structure, Half Moon Bay is responsible for approximately 61% of certain SAM operations, maintenance, and capital costs, including regional infrastructure costs that support the broader SAM system.
0 2
4 6
8 10
12 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Estimated
2027
Budget
Millions
Sewer Fund Revenue and Cash Outlay Trends
Ten Year History
Cash Outlay Revenue
Half Moon
Bay
61%
Montara
WSD
21%
Granada
CSD
18%

SEWER AUTHORITY MID-COASTSIDE

BUDGET ALLOCATIONS AS A PERCENTAGE
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As a result, the City must plan for a significant proportional share of those costs, even where the infrastructure primarily conveys wastewater from the northern member agency service areas to the treatment plant.

The practical impact is that the Sewer Fund must account for both the City’s local collection system needs and continued regional SAM obligations. The City may also evaluate longer-term governance options, including a potential consolidated wastewater agency. In the near term, these obligations, combined with inflation, aging infrastructure, and capital repair and replacement needs, create the need for an updated sewer rate study.

Sewer Rate Study
The challenges above create both timing and financial planning issues. The City needs to understand the Sewer Fund’s current revenue needs, future cost pressures, capital obligations, reserve requirements, and legally supportable rate options before any new rates can be considered. The City also needs enough time to complete the technical work, conduct public outreach, and comply with Proposition 218 before any potential new rates could take effect.

The proposed solution is to begin an updated sewer rate study. The rate study will evaluate the Sewer Fund’s financial condition, review operating and capital needs, analyze the cost of service, and identify potential rate options for City Council consideration. This action does not approve any sewer rate increase. Any future rate adjustment would require completion of the rate study, public noticing, a Proposition 218 public hearing, and separate City Council action.

Staff recommends authorizing release of a Request for Proposals for specialized professional sewer rate study consultant services. The selected consultant would prepare the technical rate study, including revenue requirement analysis, cost-of-service analysis, rate modeling, and support for public outreach and Council presentations. Following the RFP process, staff will return to the City Council with a recommended consultant agreement for consideration.

Project Management Support
Due to ongoing reduced staff levels and limited capacity for existing staff in the Finance and Engineering teams, Staff also recommends authorizing a professional services agreement with Kirsch & Associates in an amount not to exceed $30,000 for project management support. The sewer rate study will require coordination between finance, public works, legal counsel, communications, the selected rate consultant, and SAM-related information. Kirsch & Associates would assist with RFP development, consultant selection support, project schedule management, coordination of key deliverables, and preparation for Council and public meetings.

Proposition 218 and AB 2257 Procedures
Staff recommends adopting updated sewer rate setting procedures consistent with Proposition 250
218 and Assembly Bill 2257. Proposition 218 requires mailed notice, a public hearing, and an opportunity for affected property owners to submit written protests before the City may impose new or increased sewer rates.

AB 2257 allows the City to establish an administrative exhaustion process for legal challenges to proposed rates. Under the proposed procedures, property owners may submit timely written objections identifying specific grounds for alleging the proposed rates do not comply with Proposition 218. Staff would review those objections, prepare written responses, and present the responses to the City Council before the closure of the public hearing.

The procedures also clarify how written protests will be submitted, counted, and tabulated for purposes of determining whether a majority protest exists. Adopting the procedures now will allow the City to use the updated process if the sewer rate study results in proposed rate adjustments.

ATTACHMENT:

1. Resolution Authorizing a Professional Services Agreement with Kirsch & Associates

2. Resolution Authorizing the Release of a Request for Proposals for professional sewer rate study services

3. Resolution Adopting Sewer Rate Setting Procedures Under Proposition 218 and Assembly Bill 2257
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Resolution No. C-2026-

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

CITY MANAGER TO ENTER INTO AN AGREEMENT WITH KIRSCH & ASSOCIATES FOR PROJECT

MANAGEMENT SERVICES RELATED TO THE CITY'S SEWER RATE STUDY WHEREAS, the City of Half Moon Bay is preparing to undertake a comprehensive sewer rate study to evaluate the financial condition of the Sewer Fund, projected operating and capital needs, and future sewer service charge requirements; and WHEREAS, the sewer rate study will require coordination among City staff, legal counsel, the selected rate study consultant, the Sewer Authority Mid-Coastside (SAM), and other project stakeholders; and
WHEREAS, the City Council finds that project management support will assist the City in coordinating the sewer rate study process, maintaining the project schedule, and preparing materials for public outreach and City Council consideration; and WHEREAS, Kirsch & Associates has experience providing project management and utility rate consulting services to public agencies and has submitted a proposal to provide these services to the City; and
WHEREAS, funding for this agreement is included in the Fiscal Year 2026-27 Sewer Fund budget.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute a Professional Services Agreement with Kirsch & Associates in an amount not to exceed Thirty Thousand Dollars ($30,000). ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21ST day of July 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, City Clerk Debbie Ruddock, Mayor
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Resolution No. C-2026-

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

THE RELEASE OF A REQUEST FOR PROPOSALS FOR PROFESSIONAL SEWER RATE STUDY

SERVICES
WHEREAS, the City of Half Moon Bay owns and operates its local wastewater collection system and is responsible for a proportional share of regional wastewater treatment costs through the Sewer Authority Mid-Coastside (SAM); and
WHEREAS, the City's most recent sewer rate study was completed in 2020 and established sewer rates through Fiscal Year 2024-25; and WHEREAS, sewer rates have remained unchanged for Fiscal Years 2025-26 and 2026-27 while the cost of providing wastewater service has continued to increase; and WHEREAS, the City desires to complete an updated sewer rate study to evaluate the financial condition of the Sewer Fund, projected operating and capital needs, cost of service, reserve requirements, and potential sewer rate alternatives; and WHEREAS, staff has prepared a Request for Proposals to solicit qualified professional consulting firms to perform the sewer rate study; and
WHEREAS, authorizing release of the Request for Proposals does not approve any future sewer rate adjustments, which would require separate City Council action following completion of the rate study and compliance with applicable provisions of Proposition 218 and other applicable law.

NOW, THEREFORE, BE IT RESOLVED THAT, by the City Council of the City of Half Moon Bay, that:

1. Staff is authorized to release a Request for Proposals for professional sewer rate study consulting services; and

2. Staff is authorized to conduct the competitive procurement process, evaluate proposals, and return to the City Council with a recommendation for consultant selection and approval of a professional services agreement.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:
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ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
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Resolution No. C-2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ESTABLISHING SEWER RATE SETTING PROCEDURES UNDER PROPOSITION 218, AND ASSEMBLY BILL 2257 (GOVERNMENT CODE SECTIONS 53750 THROUGH 53759.2)
WHEREAS, the City of Half Moon Bay (“City”) provides sewer service to property owners (who may also be referred to as “owners”) within the relevant City service area, and establishes the amount of sewer rates to be charged customers in accordance with Half Moon Bay Municipal Code (“Municipal Code”) Chapter 13.38 and applicable law; and WHEREAS, California law authorizes the City to charge a fee to the property owners or property owners’ “tenants” (who may be collectively referred to as “ratepayers” or “customers”) for the proportionate cost of providing sewer services to each customer in accordance with the procedural and substantive requirements of the voter-approved ballot measure known as “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code Sections 53750 – 53759.2; and as it has been judicially interpreted by appellate court decisions). The City refers to those fees as sewer rates (which may be referenced herein individually as “sewer rates,” or referenced collectively as “rate” or “rates”); and
WHEREAS, Under Proposition 218, the City’s sewer rates are each considered to be a “fee” for a “property-related service” (also referred to as a “property-related fee”), subject to the particular requirements of Constitution Article XIII D, Section 6. A property-related fee is one imposed upon any parcel or person as an incident of property ownership. In general, the City may only increase its existing rates if the City (1) calculates the rates in accordance with Proposition 218, (2) conducts a public hearing before the City Council (“City Council”), as described in this resolution, and (3) a “timely written protest” is not submitted by property owners representing a majority of the parcels served by the City; and WHEREAS, Under Government Code Sections 53759.1 and 53759.2 (“AB 2257”; Chapter 561, Statutes of 2024), the City may establish a supplemental process for objecting property owners to exhaust administrative remedies, also described in this resolution, by which the City will take specified actions in response to any “timely written objection.” Any timely written objection will also be counted by the City as a timely written protest. However, under this process, only an owner who submits a timely written objection will have a right to challenge a proposed increase in sewer service charges through a legal proceeding. (These supplemental processes were authorized by Assembly Bill No. 2257, Chapter 561, Statutes of 2024, effective January 1, 2025.); and
WHEREAS, the purpose of this resolution is to provide a meaningful opportunity for a property owner to submit a written objection to a proposed new or increased rates before resorting to litigation after the new or increased rates are approved by the City Council; and 255
WHEREAS, this resolution is intended to provide a procedure for property owners to submit a written objection regarding a new or increased rates to the City’s attention early in the rate consideration process, and to provide an opportunity for the City to address or resolve any objections before the City Council makes a final decision on whether to adopt a proposed rate pursuant to Proposition 218; and
WHEREAS, this resolution will identify the process the City will follow in order to implement the administrative remedies to be exhausted by property owners under Government Code Sections 53759.1. In general, the City will make available the proposed rates, post the written basis for the proposed rates on its internet website, provide 45 days for a property owner to review the proposed rates and timely submit to the City a written objection to the rates that specifies the grounds for alleging noncompliance with Proposition 218, and require the City to consider and respond in writing to timely submitted objections prior to the close of the public hearing described in these recitals; and WHEREAS, for any rates approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates, unless that person or entity has timely submitted to the City a written objection to that rate that specifies the grounds for alleging noncompliance with Proposition 218; and WHEREAS, the City Council hereby intends to adopt the exhaustion of administrative remedies procedure as outlined in Government Code Section 53759.1, and the administrative record principles contained in Government Code Section 53759.2; and NOW, THEREFORE, BE IT RESOLVED THAT, by the City Council of the City of Half Moon Bay, as follows:

A. The City Council hereby adopts the utility rate setting procedures attached hereto as Exhibit “A,” and incorporated herein by reference (“Sewer Rate Setting Procedures”). The Sewer Rate Setting Procedures explicitly incorporate and implement the requirements contained in Proposition 218 and the procedures by which property owners are required to exhaust administrative remedies as set forth in Government Code Section 53759.1, subdivision (c).

B. For any rate adopted or approved by the City implementing the procedures described in this resolution, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIII D of the California Constitution for those rates, unless that person or entity has timely submitted to the City a written objection to those rates in accordance with this resolution that specifies the grounds for alleging noncompliance with Proposition 218.

C. The City Council hereby adopts the administrative record principles contained in Government Code Section 53759.2.
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D. This resolution will take effect immediately upon adoption by City Council, and will apply to any proposed new or increased rates of which notice is provided in accordance with this resolution.

E. The City Council authorizes the City Manager to take such other and additional actions as may be reasonably necessary to implement the purpose of this resolution and implement the exhaustion of administrative remedies procedure adopted herein.

F. To the extent this Resolution (including the Sewer Rate Setting Procedures) is inconsistent with any previously adopted City procedures implementing Proposition 218, this Resolution shall take precedence.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 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, City Clerk Debbie Ruddock, Mayor
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Exhibit A
Exhibit A

Sewer Rate Setting Procedures
These “Sewer Rate Setting Procedures” (“Procedures”) describe the processes that will be followed by the City of Half Moon Bay (“City”) in establishing any new or increased sewer rates, as summarized in the Resolution identified in the header of this Exhibit “A.” The Utility Rate Setting Procedures include compliance with Proposition 218 as well as the procedures for exhausting administrative remedies under Government Code Section 53759.1 (known as “AB 2257”).

1. Overview of Exhaustion Procedure (AB 2257)
The City will follow the “exhaustion procedure” set forth herein, to be conducted concurrently with the Proposition 218 process, for the City Council’s consideration of any proposed new or increased sewer rates. This exhaustion procedure shall be conducted in accordance with “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislature at Government Code Sections 53750 – 53759.2; and as it has been judicially interpreted by appellate court decisions), and the particular procedures set forth in Government Code Section 53759.1. The exhaustion procedure provides an opportunity for record owners to submit a “timely written objection” to identify substantive bases for asserting proposed sewer rates do not comply with Proposition 218.

NOTE that a ”record owner” may be referred to in these Procedures as the “owner” or “property owner”; and a “record owner” shall include a tenant who is directly liable to pay the rates. The processes described herein may be referred to as “these Procedures.” As used in these procedures, the term “rates” may be used to refer to a proposed update to the City’s sewer rates. a. City staff will post on its internet website a notice of the exhaustion procedure, and this notice will be prominently incorporated in the Proposition 218 public hearing notice mailed to each record owner.
b. The notice will identify the date and time by which timely written objections must be submitted to the City, and the date will be no less than 45 calendar days after the notice is mailed to record owners.
c. City staff will review timely written objections and draft written responses providing the substantive basis for retaining or altering the proposed rates in response to the written objections. City staff will present its written responses to the City Council prior to the close of the public hearing for the Proposition 218 protest hearing, and the City Council will review to determine whether action is needed in response to the written objections or written responses.
d. Following the City Council’s review and response to timely written objections and written responses, it is within the discretion of the City Council to proceed with the Proposition 218 protest hearing process, as described herein, to consider approval of the proposed rates.
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Exhibit A
Exhibit A

e. Rate Challenger Must Exhaust Administrative Remedies. No claim, suit for damages, suit for injunctive relief, petition for writ of mandamus, or administrative or judicial proceeding shall be brought against the City (including the City Council, or its employees, officers, or designees) regarding a challenge to proposed rates unless the challenging party first exhausts its administrative remedies by complying with these Procedures and submitting to the City a timely written objection.

2. Notice of Proposition 218 Public Hearing and Initiating Exhaustion Procedure Prior to approving or imposing any new or increased rates, the City will conduct a public hearing and provide prior written notice to each record owner of the hearing and the exhaustion procedure as described in these Procedures. To the extent the City sends a regular billing statement for sewer service provided to a “customer” (e.g., a “tenant” or other “ratepayer”) who is not the record owner, the City will also mail the written notice to the customer at the address for the billing statement. The City will mail the public hearing notice to each record owner no later than 45 days prior to the public hearing. The contents of the hearing notice will include:
a. Compliance with Proposition 218:
(1) The date, time, and location of the public hearing. (2) The amount of the rates imposed on each parcel.
(3) The basis upon which the amount of the proposed rates were calculated. (4) The reason for the rates.
(5) The location to which owners must submit written protests via mail, email, or personal delivery.
(6) If required by Government Code Section 54354.5, the notice will identify the opportunity for record owners to be heard as to whether the proposed rates are not in compliance with any requirements of the Revenue Bond Law of 1941 (Government Code Sections 53000 – 55821), including: (a) are discriminatory or excessive, or (b) will not be sufficient under the provisions of any outstanding revenue bonds (including Government Code Section 54515). (7) How members of the public may obtain additional information regarding the proposed new or increased fee, including a link to information that is available on the City’s website or by requesting a mailed copy. This may include a copy of the resolution or ordinance by which the proposed new or increased rates are proposed to be adopted.
b. Compliance with the Exhaustion Procedure for Written Objections. If the City chooses to follow the exhaustion procedure for written objections, concurrently with mailing the public hearing notice, the City will post on its internet website the written basis 259
Exhibit A
Exhibit A

for the proposed rates and a link to the Proposition 218 public hearing notice which will be supplemented with the following prominently displayed information:
(1) The “deadline” (date and time) by which a “timely written objection” must be submitted to the City. The deadline will be no earlier than 45 days after the City mails to property owners the notice of the public hearing. (2) The location to which written objections must be submitted to the City via mail, email, or personal delivery.
(3) All substantive requirements for submitting a written objection. The record owner must comply with the requirements set forth in Procedures Section 3, below, including specifying the grounds on which the owner alleges the proposed new or increased rates does not comply with Proposition 218.
(4) Notice that: (a) any person’s failure to submit a timely written objection bars any right of that person to challenge the proposed new or increased fee through a legal proceeding; and (b) there is a 120-day statute of limitations for challenging the proposed new or increased rates (in accordance with Government Code Section 53759).
c. The City will mail the public hearing notice to each record owner of a parcel that is subject to payment of the new or increased fee. The notice shall be mailed to owner’s address shown on the last equalized property tax assessment roll. (1) There is a rebuttable presumption that the most recent equalized property tax assessment roll of the San Mateo County Recorder is sufficient evidence of the record owner of each parcel. A person may rebut the presumption by providing to the City written proof of ownership.
(2) The City Clerk, or designee, may certify by affidavit the proper mailing of notices described in these Procedures, and any such affidavit shall constitute conclusive proof of mailing in the absence of fraud.
(3) Failure of any person to receive notice shall not invalidate the hearing or its results.
(4) The City will also provide supplemental notices to the address where the City customarily mails the billing statement for rates. d. Concurrently with publishing and mailing the public hearing notice, the City will post on its website relevant information regarding the proposed new or increased fee including a copy of the cost of service analysis (which may be referred to as a “rate study”) which provides documentation of compliance with all substantive requirements of Prop 218 regarding the calculation of the amount of the proposed new or increased fee. 260
Exhibit A
Exhibit A

3. Requirements for Submitting Timely Written Objections (AB 2257) For the purpose of considering written objections, the City will consider the term “record owner” to include tenancies of real property where tenants are directly liable to pay the rates to the City (consistent with Proposition 218; California Constitution Article XIII D, Section 2(g)).

In order for a record owner to submit a timely written objection, it must:
a. Be received by the City at the location identified on the public hearing notice, no later than the deadline identified on the public hearing notice. The deadline may be no earlier than 45 days after the City mails to record owners the notice of public hearing. b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signed by the record owner.
c. Specify the grounds for alleging the proposed rates do not comply with Proposition 218. The grounds must identify (i) the substantive requirement of Proposition 218, and (ii) the reason the proposed rates do not comply with that requirement. For any proposed new or increased “fee” for a property-related service (such as sewer rates), relevant substantive requirements of Proposition 218 include:
(1) Revenues derived from the rates shall not exceed the funds required to provide the property related service (sewer service).
(2) Revenues derived from the rates shall not be used for any purpose other than that for which the fee or charge was imposed.
(3) The amount of the rates shall not exceed the proportional cost of the service attributable to the parcel.
(4) No rates may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Rates based on potential or future use of a service are not permitted. (5) No rates may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

4. Requirements for Submitting Timely Written Protests (Proposition 218) For the purpose of considering and counting written protests, the City will consider the term “record owner” to include tenancies of real property where tenants are directly liable to pay the rates to the City (consistent with Proposition 218; California Constitution Article XIII D, Section 2(g)).
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Exhibit A
Exhibit A

In order for a record owner to submit a timely written protest, to be considered as a part of the Proposition 218 protest hearing described in Section 6, below, it must:
a. Be received by the City at the location identified on the public hearing notice, no later than the close of the public testimony portion of the public hearing. b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signed by the record owner.
c. Must clearly identify that the record owner opposes the proposed new or increased rates that are the subject of the hearing.
d. Will only be counted as one protest per parcel. That means if any one or more record owners of a parcel submits a timely written protest (or timely written objection) for the same parcel, it will be counted as one timely written protest. e. Record owners of multiple parcels within the City may file one protest for each parcel owned within the City’s service area.
f. A record owner may withdraw a written protest only if the withdrawal is submitted in writing by the record owner clearly indicating an intent to withdraw for an identified property, and it is received by the City at the location (and no later than the time) for submitting written protests. After a written protest is withdrawn, a record owner may submit a new or replacement written protest in accordance with the requirements of these Procedures. No other modification to a timely written protest may be made. g. The City Clerk shall take custody of all submitted written objections and written protests.
(1) In order to protect the integrity of the procedures for considering written objections and written protests as described in these Procedures, all written objections and written protests shall remain confidential until the City Manager (or designee) has determined they may be published in accordance with the criteria in paragraph 4(g)(2).
(2) Any submitted written objection and written protest shall be a public record; however, the City may withhold disclosure if the City determines that the public interest served by not disclosing clearly outweighs the public interest served by disclosure under Government Code Section 7922.000. As a general rule, the City finds there is a substantial public interest in not disclosing written objections and written protests to protect the integrity of the process described herein during the time that: (A) written objections are still being submitted and (B) prior to the time that the Brown Act meeting agenda is posted (e.g., at least 72 hours before a regular meeting under Government Code Section 54954.2).
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Exhibit A
Exhibit A

5. City’s Response to Timely Written Objections (AB 2257) At the close of the written objection period, City staff shall review timely written objections (as defined in Section 3, above) and shall draft written responses to the written objections. The City’s written response will include: (i) the grounds on which the objection is (or is not) resulting in amendments to the proposed new or increased rates; and (ii) an explanation of the substantive basis for retaining or altering the proposed new or increased rates.

City staff shall present the written responses to the City Council at the public meeting that was specified in the public hearing notice described in Section 2, above. a. In accordance with the Brown Act, the public will be provided an opportunity to address the City Council prior to the Council’s action related to the timely written objections and written responses. (See Government Code Section 54954.3(a).) b. In accordance with Government Code Section 53759.1(d), the City Council, in exercising its legislative discretion in considering timely written objections and written responses, shall determine for the proposed new or increased rates whether further review, clarification, or reduction is needed, and whether to proceed to the Proposition 218 protest hearing.

6. Conducting the Proposition 218 Protest Public Hearing If the City Council determines to proceed to the Proposition 218 protest public hearing for proposed new or increased rates (as previously noticed in accordance with Section 2, above), the public hearing shall be conducted consistent with the following:
a. The City Council will open the public hearing and consider all evidence presented during the hearing including the public hearing notice and all documents referenced therein (particularly including the Rate Study), all written objections, written responses, written protests, and any testimony, documents, or information presented during the public hearing.
b. Prior to closing the public hearing, the City Council will request if there are any additional written protests to be submitted to (or withdrawn from) the City. c. The City Council will then close the public hearing and request a report from the City Clerk to identify the number of timely written protests compared to the total number of parcels subject to the new or increased fees. The City Clerk shall determine the number of written protests that meet the requirements of these Procedures and seek legal advice from the City Attorney if there are any questions regarding the counting of timely written protests that meet the requirements of these Procedures. (1) A majority protest exists only if the number of timely written protests exceeds one-half of the parcels served by the City.
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Exhibit A
Exhibit A

(2) If the City Clerk determines that additional time is needed to tabulate timely written protests, the City Council shall recess or continue the public meeting to provide sufficient time for the City Clerk to complete the tabulation. (3) If the City Clerk determines that there is a majority protest, the City shall not impose the new or increased rates.
(4) If the City Clerk determines that there is not a majority protest, the City Council shall continue its deliberations and take action on the proposed new or increased rates.
(5) The City Clerk’s determinations under these Procedures shall be the final determination of the City subject to appropriate judicial review. This shall include the City Clerk’s determinations that: (a) a written protest meets the requirements for a timely written protest in accordance with these Procedures; or (b) a majority protest has (or has not) been submitted for the proposed rates. 264

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim Public Works Director/City Engineer Mike Burnfield, Assistant Engineer
TITLE: CONSTRUCTION CONTRACT AWARD FOR THE WAVECREST ROAD WATER LINE PROJECT (CIP PROJECT NO. 9004)
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Golden State Construction & Utility, Inc., of San Francisco, California, in the amount of $774,000, and approve a construction contingency amount not to exceed $154,800 (20%) for the Wavecrest Road Water Line Project (CIP Project No. 9004) for a total construction budget of $928,800.

FISCAL IMPACT:

This project is fully funded by previous General Fund and Park Facility (Fund 125) allocations to CIP 9004, which has a current approximate net balance of $1,750,000 in available funds.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Wavecrest Road Water Line Project (CIP No. 9004) was initiated to provide essential water service for fire protection and irrigation to Smith Field Park. The project scope includes the construction of approximately 2,600 linear feet of water main and lateral piping along Wavecrest Road between Highway 1 and Smith Field Park, located at 201 Wavecrest Road. The improvements include the installation of new valves, lateral connections, and five fire hydrants, as well as road pavement restoration along Wavecrest Road, traffic control and erosion and sediment control improvements during construction.
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CEQA DETERMINATION:

In September 2022, the City Council authorized a professional services agreement with Freyer & Laureta, Inc. to prepare project design drawings and environmental documents for the project.

The City subsequently completed CEQA review for the project through adoption of a Mitigated Negative Declaration (MND) and issuance of a Coastal Development Permi (CDP), which were approved by the City’s Planning Commission on September 23, 2025. The award of the construction contract is within the scope of the previously approved project and does not involve substantial changes, new information, or changed circumstances requiring subsequent environmental review.

BID SUMMARY:

The City received thirteen (7) bids before the scheduled bid opening time and date of 3:00 PM on Wednesday, July 8, 2026. The three (3) lowest bids and engineer’s estimate are summarized as follows:

Bidder Base Bid
Engineer’s Estimate $1,790,000.00
Golden State Construction & Utility $774,000.00
Golden Bay Construction Inc. $841,874.00
Casey Construction $922,088.00
DISCUSSION:

Overall the bid response was very strong. City staff noted seventeen (17) construction companies attended a mandatory, onsite pre-bid meeting held during the open bid window.

Final bids received were very competitive and well below the engineer’s estimate, which had included conservative contingencies considering recent price volatility and mobilization challenges at the site due to the narrow road width and existing nearby sensitive habitat.

The lowest responsive and responsible bidder, Golden State Construction & Utility, Inc., base bid of $774,000 is approximately 57% below the Engineer’s Estimate. Golden State Construction & Utility, Inc, is a San Francisco County contractor who has an extensive resume of work including underground utility construction and emergency utility repairs throughout the Bay Area. Staff have reviewed the bid from Golden State Construction & Utility, Inc., discussed with their construction team and determined that it is acceptable and free from material discrepancies. Construction contingencies of 20% of the contract are also requested for the project.

The anticipated construction schedule is from August 3 through October 2, 2026. Work hours will be Monday through Friday, 7:00 a.m. to 5:00 p.m. The contractor is responsible for providing traffic control and notifying residents and businesses impacted by scheduled work.

Staff recommends awarding the contract to the lowest responsive and responsible bidder, Golden State Construction & Utility, in the amount of $774,000 and approve a construction 266

contingency amount not exceeding $154,800 (20%) for the Wavecrest Road Water Line Project (CIP Project No. 9004), for a total construction budget of $928,800.

ATTACHMENTS:

1. Resolution

2. Summary of Bids

3. Construction Bid Set (Plans)
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RESOLUTION NO. C-2026-

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

CITY MANAGER TO AWARD AND EXECUTE A CONSTRUCTION CONTRACT WITH GOLDEN STATE CONSTRUCTION & UTILITY, INC., OF SAN FRANCISCO, CALIFORNIA, IN THE AMOUNT OF $774,000, AND APPROVING A CONSTRUCTION CONTINGENCY IN AN AMOUNT NOT EXCEEDING 20%, OR $154,800, FOR THE WAVECREST ROAD WATER LINE PROJECT (CIP NO. 9004) FOR A TOTAL CONSTRUCTION BUDGET OF $928,800.

WHEREAS, the Wavecrest Road Water Line Project (CIP No. 9004) was initiated to provide essential water service for fire protection and irrigation to Smith Field Park through the construction of approximately 2,600 linear feet of water main and related improvements; and WHEREAS, on September 20, 2022, the City Council authorized a professional services agreement with Freyer & Laureta, Inc. to prepare project design drawings and environmental documents; and
WHEREAS, on September 23, 2025, the Planning Commission adopted a Mitigated Negative Declaration (MND); and
WHEREAS, on September 23, 2025, the Planning Commission approved a Coastal Development Permit for the project, and the project has received necessary permit approvals from the Coastside County Water District and the Coastside Fire Protection District; and WHEREAS, the City advertised the project for construction and opened seven (7) bids that were received at the scheduled time, date, and place, as set forth in the Public Contract Code for the Project at 3:00 PM on Wednesday, July 08, 2026; and WHEREAS, the lowest responsive and responsible bid for the base bid was submitted by Golden State Construction & Utility, Inc., of San Francisco, California, in the amount of $774,000; and
WHEREAS, City staff have reviewed the bid from Golden State Construction & Utility, Inc. and determined that it is acceptable and free from material discrepancies; AND WHEREAS, the award of the construction contract is within the scope of the previously approved MND and does not involve substantial changes, new information, or changed circumstances requiring subsequent environmental review.

NOW, THEREFORE, BE IT RESOLVED THAT that the City Council of the City of Half Moon Bay hereby:

1. Accepts the submitted seven (7) responsive bids.
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2. Authorizes the City Manager to award and execute a construction contract to the lowest responsive and responsible bidder, Golden State Construction & Utility, Inc., of San Francisco, California, in the total amount of $774,000, for the Wavecrest Road Water Line Project (CIP Project No. 9004).

3. Approves an additional construction contingency in an amount not exceeding 20%, or $154,800, for a total construction budget of $928,800.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 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, City Clerk Debbie Ruddock, Mayor
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VICINITY MAP SHEET INDEX: SAN MATEO COUNTY, CALIFORNIA CITY OF HALF MOON BAY GENERAL NOTES: CITY PROJECT NO. 9004 DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 1-2 - Title + Notes.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 WAVECREST ROAD WATER LINE PROJECT LOCATION MAP 271

1. “ ” 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7.a. b. c. d. 8.a. b. c. a. b. c. a. b. c. CONDITIONS OF APPROVAL: DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 1-2 - Title + Notes.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 1. 2. 3. 4. 5. 272
’ CONSTRUCTION NOTES: DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 1-2 - Title + Notes.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 ABBREVIATIONS LEGEND DETAIL CALL-OUT GAS GAS SS SS W W // // // // // W W 273
DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 1-2 - Title + Notes.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 “ ” ENCROACHMENT PERMIT “ ” “ ” “ ” “ ” “ ” “ ” TRAFFIC CONTROL NOTES 274
DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 5 - Traffic Control Plan.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 275
POINT NORTHING EASTING ELEVATION DESCRIPTION DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 3 - Erosion Control Plan.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 LEGEND:
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CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS
San Francisco, CA 94134
(415)534-7070 www.freyerlaureta.com
150 Executive Park Blvd, Suite 4200
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(415)534-7070 www.freyerlaureta.com
150 Executive Park Blvd, Suite 4200
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San Francisco, CA 94134
(415)534-7070 www.freyerlaureta.com
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150 Executive Park Blvd, Suite 4200
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CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS
San Francisco, CA 94134
(415)534-7070 www.freyerlaureta.com
150 Executive Park Blvd, Suite 4200
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CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS
San Francisco, CA 94134
(415)534-7070 www.freyerlaureta.com
150 Executive Park Blvd, Suite 4200
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DATE DRAWN JOB NO. DWG SHEET SCALE REVISIONS BY OF SHEETS Z:\Projects\276 City of Half Moon Bay\013 Wavecrest Waterline\AAA Latest\Sheet 10-13 - Details.dwg CIVIL ENGINEERS SURVEYORS CONSTRUCTION MANAGERS San Francisco, CA 94134 (415)534-7070 www.freyerlaureta.com 150 Executive Park Blvd, Suite 4200 284
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim Public Works Director/City Engineer Todd Seeley, Public Works Superintendent
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH BRUSH HOG TREE CARE, INC. ______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute a professional services agreement with Brush Hog Tree Care, Inc., to provide city-wide median landscape maintenance services for Fiscal Year 2026-27 in an amount not to exceed $35,400 with up to four (4) optional one-year extensions.

FISCAL IMPACT:

The fiscal impact for this contract is $35,400 and will be funded through the FY 2026-27 adopted Public Works Operating Budget. The scope of services includes weed removal and general cleaning of all City maintained Highway 1 and 92 medians.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment and Inclusive Governance Elements of the Strategic Plan.

BACKGROUND:

The Half Moon Bay Public Works Department is responsible for the maintenance, replacement, and enhancement of City infrastructure, including development and implementation of the City’s Three-Year Capital Improvement Program (CIP). The majority of ongoing maintenance of the City’s parks, buildings, facilities, and utilities are managed by the Public Works Maintenance Division with support from qualified contractors for certain, specialized activities.

The City first contracted with Loral Landscaping, Inc. in 2019 to maintain the City’s landscaped medians located along Highway 1 and Highway 92. In FY 2022-23, with the completion of the Highway 1 South project, additional landscaping along Highway 1 was completed and City has responsibility for ongoing maintenance. Upon completion, the additional landscaped area was added to the scope of services for Loral for ongoing maintenance. Loral’s contract was 288

previously approved through FY 2025-26, at which point staffed opted to issue a new Request for Proposals (RFP).

CEQA DETERMINATION:

The project is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 because it consists of repair and rehabilitation of existing public facilities involving no expansion of existing or former use. None of the exceptions set forth in CEQA Guidelines Section 15300.2 applies. The contract award is an implementation action within the scope of that exemption.

DISCUSSION:

The mission of the Public Works Department is to promote safety, livability, and sustainability through effective management of streets, parks, facilities, and utilities. In order to meet this mission within the current capabilities, resources, and constraints of the Department, the City occasionally relies on outside consultants and contractors with specialized skills, tools and/or expertise, allowing full-time staff to continue providing other assigned duties or services.

On June 18, 2026, the City issued an RFP for Landscape Maintenance Services for Highway 1 and Highway 92, with proposals due July 9, 2026. The scope includes ongoing maintenance of all cityowned median areas with an additional alternate bid for pricing for irrigation repairs.

The City received five proposals from the following firms: J. Cozzolino Landscaping, Loral Landscaping, Brush Hog Tree Care, New Image Landscape, and Brightview Landscape. The total yearly costs for the work ranged from $35,400 to $63,780, and all the bids received were deemed to be responsive and complete. A summary of total annual costs is:

Brush Hog Tree Care, Inc. $35,400.00
Loral Landscaping $48,000.00
BrightView Landscape $50,875.80
J. Cozzolino Landscape $61,920.00
New Image Landscape $63,780.00
Brush Hog’s bid is considerably lower than all the other bids. Staff confirmed they have all of the necessary licensing (Qualified Applicators License and registration with the State of California) to perform the scope of services requested. Staff also met with the owner of the company to talk through their approach to the project and the firm is aware that this is a high-visibility project with significant expectationsfrom the community. Brush Hog walked staff through how they best feel they can address the City’s needs, and staff are excited about the opportunity to work with a local company on this project. Brush Hog’s proposal fully addresses all RFP requirements including project management and licensing requirements.

ATTACHMENTS:

Resolution
289
RESOLUTION NO. C-2026-

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH BRUSH HOG TREE CARE, INC. FOR LANDSCAPE MAINTENANCE SERVICES FOR FY 2026-27 IN AN AMOUNT NOT TO EXCEED $35,400, WITH UP TO FOUR (4) ONE-YEAR EXTENSIONS.

WHEREAS, the City of Half Moon Bay Public Works Department is responsible for median landscape maintenance as an ongoing essential service; and WHEREAS, the solicited bids for the maintenance of these areas through an RFP; and WHEREAS, Brush Hog Tree Care, Inc. submitted the lowest responsible bid, and has a track record of excellent service and response times for requests for service; and WHEREAS, adequate funds are available in the City’s adopted FY 2026-27 budget for these services.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute the Professional Services Agreement with Brush Hog Tree Care, Inc. for landscape maintenance services for FY 2026-27 in an amount not to exceed $35,400, with up to four (4) one-year extensions.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 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, City Clerk Debbie Ruddock, Mayor
290

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: AMENDMENT TO AGREEMENT FOR GOLF FACILITIES FEES
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to negotiate and execute an Amendment to the Owner Participation Agreement with Ocean Colony Partners, LLC, to extend the Termination Date to September 16, 2036, amend the Fee, and amend or delete certain Sections of the Agreement.

FISCAL IMPACT:

Under the terms of the current agreement, which expires on September 17, 2026, the City receives on average approximately $670 thousand per year in revenue per year. The proposed Amendment would generate approximately $560 thousand in year one and $450 thousand annually thereafter. The FY 2026-27 Adopted Budget did not anticipate an extension of the fee revenue, so if approved the additional revenue will be included in the mid-year budget update.

STRATEGIC ELEMENT:

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

BACKGROUND:

In 1991, the City (as the Community Development Agency of the City of Half Moon Bay, or the “Agency”) entered into an Owner Participation Agreement with Ocean Colony Partners, L.P. (the “Participant” or “OCP”), related to a golf course redevelopment project at Half Moon Bay Golf Links. As part of the project, the agreement required payment of a Golf Course Facilities Fee where non-Half Moon Bay residents playing rounds of golf at the Golf Links would pay a specified amount. Pursuant to the agreement, the Fee expires on September 17, 2026, with no further obligation from OCP. Under the current agreement, OCP collects 6% of Green Fees from non-resident golfers, which generates approximately $670,000 per year to the City’s General Fund. At the expiration of the Agreement, this fee will no longer be collected, and the FY 2026- 27 Adopted Budget accounts for this revenue loss, which has a direct impact on the ongoing structural deficit the City continues to address.
291

On July 15, 2025, the Council appointed an Ad Hoc subcommittee to work with Staff to develop and evaluate strategies for renegotiating the Agreement, or explore other ways to replace the revenue. Ocean Colony Partners and the City have come to agreement on an amendment and extension of the Fees, at a reduced rate, with minor changes to the Agreement.

DISCUSSION:

The draft Amendment extends the Termination Date an additional ten years from September 17, 2026, to September 16, 2036, while reducing the Golf Course Fees from 6% of Green Fees paid by non-resident golfers to 5% in year one (September 17, 2026, to September 16, 2027), and 4% for the remainder of the Term (September 17, 2027, to September 16, 2036).

Additionally, Section 905 (Preferential Golf Rate) would be deleted in its entirety, removing the requirement for preferential rates for residents of Half Moon Bay. It is estimated that under this amendment, the City will receive approximately $560 thousand in FY 2026-27, and approximately $450 thousand per fiscal year through the end of the term, not accounting for inflation or other economic factors.

NEXT STEPS:

The Amendment needs to be finalized Staff recommends the Council authorize the City Manager to finalize negotiation of the Amendment, in consultation with the City Attorney and Ad Hoc Committee, and when complete, execute the Amendment.

ATTACHMENTS:

1. Resolution

2. Owner Participation Agreement dated September 28, 1993 292
Resolution No. C-2026-

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

CITY MANAGER TO NEGOTIATE AND EXECUTE AN AMENDMENT TO THE OWNER

PARTICIPATION AGREEMENT WITH OCEAN COLONY PARTNERS, LLC, TO EXTEND THE TERMINATION DATE TO SEPTEMBER 16, 2036, AMEND THE FEE, AND AMEND OR DELETE

CERTAIN SECTIONS OF THE AGREEMENT
WHEREAS, in 1991 the City and Ocean Colony Partners, L.P. (OCP) entered into an Owner Participation Agreement related to a golf course redevelopment project at Half Moon Bay Golf Links; and
WHEREAS, under the terms of the Agreement, a Golf Course Facilities Fee would be collected from non-Half Moon Bay residents playing rounds of golf at the Golf Links and remitted to the City; and
WHEREAS, Pursuant to the agreement, the Fee expires on September 17, 2026, with no further obligation from OCP; and
WHEREAS, the City and OCP have negotiated an extension of the Golf Course Facilities Fee, as well as other amendments to the Agreement.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the city Manager to negotiate and execute an Amendment to the Owner Participation Agreement with Ocean Colony Partners, LLC, to extend the Termination Date to September 16, 2036, amend the Fee, and amend or delete certain Sections of the Agreement. ***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21ST day of July 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, City Clerk Debbie Ruddock, Mayor
293

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: July 21, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Chidester, City Manager
TITLE: AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to:

1. Execute a Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office for a term of five years from July 1, 2025, through June 30, 2030; and

2. Execute Amendment One to the Law Enforcement Services Agreement setting the Rates and Payment Schedule for Fiscal Year 2026-27.

FISCAL IMPACT:

The updated Agreement and Amendment One include a Fiscal Year 2026-27 cost for law enforcement services of $7,251,351, which represents an increase of 9.1% over the previous fiscal year, mostly due to negotiated increases in personnel wages and support services. The budget is based on estimated costs for services, which will be reconciled at the end of the fiscal year.

Historically the end of year reconciliation results in a credit back to the City.

STRATEGIC ELEMENT:

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

OVERVIEW:

On June 7, 2011, the City Council entered into an Agreement with the San Mateo County Sheriff to provide law enforcement services in Half Moon Bay, as a cost saving measure versus the historic City police department. The initial agreement ran for a five-year period ending June 30, 2016. The original Agreement addressed the complex issues associated with a transfer of City police services to the County.

Over the course of the last 15 years, the City has not only realized annual cost savings and long-term savings in retirement/pension related costs but also benefitted from increased efficiencies and services for both City residents and visitors. The contract model has provided access to a wider variety of resources which the community and residents of Half Moon Bay have benefitted from. Examples of some of the expanded resources provided by the Sheriff include, but aren’t limited to, additional resource officers dedicated to community policing efforts, access to the Crime Suppression Unit, a large 294

multi-disciplinary investigations unit, and the Sheriff’s Activity League, which serves the youth of our community with educational, athletic and leadership activities and programs.

The 2023 mass shooting incident and subsequent investigations served as a tangible example of the benefits of our contractual relationship with the Sheriff and their relationships with the District Attorney and other emergency services agencies. The City has received positive feedback from Fire and EMS that communications and related emergency response was seamless during the event and immediate aftermath. Additionally, the Sheriff was instrumental in the successful implementation of the CARES Team program on the Coastside and is now working with the County’s Mobile Crisis Response Team.

BACKGROUND:

The original Agreement has been extended a number of times since its inception. Amendment 17, approved by the City Council on January 21, 2025, increased the annual budget for law enforcement services to $6,269,114 through June 30, 2025. Due to the ongoing leadership turmoil in the Sheriff’s Office at the time, the agreement expired and services have continued under the same terms and conditions. In March 2025 the County provided an updated fee schedule totaling $6,643,773, which was included in the City’s FY 2025-26 Revised Budget. Without an amendment of the contract and Council approval of the increased costs, the City could only pay up to the amount previously approved in the last fiscal year. Fortunately, the actual costs of services, which are reconciled at the end of each fiscal year, have historically been less than the budgeted amount, resulting in a credit of the fees paid in excess. The reconciliation for FY 2025-26 will be finalized in the next month, but preliminary review by the County indicates that the actual costs were less than what the City paid, and the City will again receive credit back for the excess. The City and County are focused on the future of the contractual relationship.

DISCUSSION:

In November 2025, the County appointed Kenneth Binder as the new Sheriff, filling the remainder of the term from the previously elected Sheriff. Since that time, the Sheriff’s Office has stabilized, and many of the positions that were vacant have been filled. The County has now provided an updated Agreement for the City’s consideration, which would retroactively extend Sheriff services to Half Moon Bay for a term of five years beginning July 1, 2025, and expiring on June 30, 2030. The updated Agreement is generally similar to the previously amended contract, but fully consolidated and simplified.

The Agreement also incorporates several changes in order to make all of the Sheriff’s contracts standardized, which in the case of our agreement, include: mandatory community events (3 per year, Sheriff-led trust-building events) have been removed, additional traffic control during summer/tourist months has been removed, and the special Events coordinator role (Pumpkin Festival, 4th of July, etc.) has been removed. These items had been added over time to address needs within our community, and many remain important. Additionally, several other terms have been removed or updated in all contracts, as they’ve been deemed outdated/unnecessary or standardized in other ways. 295

On May 19, 2026, the Council was presented with the updated Agreement and provided feedback on several of the terms and conditions that have been modified from the previous contract. Council appointed an Ad Hoc Committee to support Staff and meet with the Sheriff’s Office to discuss the modifications and potentially negotiate additional terms. Staff and the Ad Hoc met with Sheriff’s leadership, discussed the terms that have been modified or removed, and came to an understanding on several items. In the case of the additional services specific to Half Moon Bay, the Sheriff confirmed that all of those services remain available to the City, and should be coordinated directly between the City Manager and the Sheriff’s Captain assigned to the Coastside Patrol Bureau, who meet regularly to discuss issues and coordinate operations. Additionally, the Captain has agreed to provide more frequent updates and presentations to the Council than the annual report, which will allow the Council and the community to provide feedback and share ideas on a regular basis. Other more technical changes to the Agreement have been discussed and deemed acceptable.

In addition to the updated Agreement, the Sheriff has provided Amendment One to the Agreement, which sets the rates and payments for Fiscal Year 2026-27. Under state law, the County is required to obtain full cost recovery for the law enforcement services it provides to the City. Each year the Agreement must be amended to estimate the actual costs of providing those services, and a full reconciliation of actual costs takes place at the end of each fiscal year. If the City has underpaid the actual costs, the City would need to make the County whole, and if the City has overpaid, the County credits the additional costs back to the City. Amendment One sets the annual rates and payments for this fiscal year at $7,251,351, which has been included in the FY 2026-27 Adopted Budget.

ATTACHMENTS:

1. Resolution

2. Law Enforcement Services Agreement Between the County of San Mateo and the City of Half Moon Bay

3. Amendment One to the Law Enforcement Services Agreement 296
RESOLUTION NO. C-2026-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO: 1) EXECUTE A LAW ENFORCEMENT SERVICES AGREEMENT WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE FOR A TERM OF FIVE YEARS FROM JULY 1, 2025, THROUGH JUNE 30, 2030; AND 2) EXECUTE AMENDMENT ONE TO THE LAW ENFORCEMENT SERVICES AGREEMENT SETTING THE RATES AND PAYMENT SCHEDULE FOR FISCAL YEAR 2026-27.

WHEREAS, in 2011, the City of Half Moon Bay entered into an agreement with the County of San Mateo to provide Law Enforcement Services for the City; and WHEREAS, the Agreement has been amended seventeen times to extend the term, increase service levels, and increase the charges; Amendment Seventeen extended the term through June 30, 2025; and
WHEREAS, the Sheriff’s Office has consolidated, simplified, and standardized the Agreement, and desires to retroactively enter into an agreement with the City for five years from July 1, 2025, through June 30, 2030; and
WHEREAS, the Sheriff’s Office has also provided Amendment One setting the setting the rates and payment schedule for fiscal year 2026-27.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute a Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office for a term of five years from July 1, 2025, through June 30, 2030, in a form substantially similar to the form attached hereto, with minor amendments that may be approved by the City Attorney; and to execute Amendment One to the Law Enforcement Services Agreement setting the Rates and Payment Schedule for Fiscal Year 2026-27, in a form substantially similar to the form attached hereto, with minor amendments that may be approved by the City Attorney.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 21st day of July 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
297
___________________________ _____________________________ Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
298

LAW ENFORCEMENT

SERVICES AGREEMENT
Between the County of San Mateo
and the City of Half Moon Bay
July 1, 2025 through June 30, 2030
Version: May 19, 2026
299

AGREEMENT FORLAW ENFORCEMENT SERVICES
City of Half Moon Bay / San Mateo County Sheriff’s Office

A G R E E M E N T

FOR LAW ENFORCEMENT SERVICES BETWEEN THE

COUNTY OF SAN MATEO AND CITY OF HALF MOON BAY
THIS AGREEMENT, entered into on the 1st day of July, 2025, by and between the CITY OF HALF MOON BAY, a general law city in the County of San Mateo, State of California, hereinafter referred to as "City" and the COUNTY OF SAN MATEO, a political subdivision of the State of California, hereinafter referred to as "County.”

W I T N E S S E T H
WHEREAS, pursuant to Government Code §§51300, et seq. County may contract with City for the performance of City functions by the appropriate officers and employees of County; and WHEREAS, City is desirous of having the County provide law enforcement services through the Sheriff's Office, as hereinafter set forth, for and on behalf of City, within the territorial limits of said City, and the County is willing to perform such services as provided herein below:

NOW, THEREFORE, IT IS HEREBY AGREED as follows:

1. EXHIBITS AND ATTACHMENTS.

1.1 The following exhibits and attachments are included hereto and incorporated by reference herein:
▪ Exhibit A – Services
▪ Exhibit B - Rates / Payments

2. SERVICES TO BE PERFORMED BY COUNTY.

2.1 In consideration of the payments set forth herein and in Exhibit B, County shall provide law enforcement and police services within City. Said services are described in Exhibit A.

2.2 The City is not limited to the services identified in Exhibit A, and may request and fund additional services in the field of public safety, law enforcement or related fields within the legal authority of the Sheriff to provide, subject to additional service costs.

3. PAYMENTS.

3.1 The City shall pay the County for the services provided under the terms of this Agreement at the rates set forth in Exhibit B.

3.1.1 At the City’s request, the City will receive a quarterly overtime, salary, and benefits 300

AGREEMENT FORLAW ENFORCEMENT SERVICES
City of Half Moon Bay / San Mateo County Sheriff’s Office

report that will include year-to-date expenditures for overtime, salary, special pays, and benefits. The report will provide a summary level comparison between the actual expenditures and budgeted amounts based on the costs for personnel outlined in the adopted Exhibit B.

3.1.2 An annual reconciliation will be completed at the end of each fiscal year wherein the Sheriff’s Office will reconcile the amount in this Agreement against the actual cost of services delivered. Any surplus funds will be set aside in an interestearning account held by the County and available to the City to cover potential future deficits or other one-time needs. However, if this excess revenue exceeds $1M, the balance exceeding $1M will be returned to the City at year-end for the City to utilize at its discretion.

3.2 The rates set forth in Exhibit B shall be readjusted by the County annually effective July 1 st
of each year, and attached as an Amendment to this Agreement, to reflect the cost of such services as provided in Government Code Section 51350 and in accordance with the policies and procedures for the determination of such rates as approved by the County Board of Supervisors. County shall provide City with the proposed rates for the following contract year on or before April 1 of each year.

3.3 The City shall be billed based on the service level provided within the parameters of Exhibit A.

3.4 The cost of additional services, requested by City, in the field of public safety, law or related fields within the legal authority of the Sheriff to provide not set forth in Exhibit A shall be reflected in an amendment to Exhibits A and B.

3.5 Retirement – Unfunded Actuarial Accrued Liabilities.

3.5.1 Retirement rates reflected in Exhibit B are calculated using the County’s employer rate, consisting of a normal cost component and an amortization component for the Unfunded Actuarial Accrued Liability (UAAL). Upon annual receipt of City’s CALPERS Actuarial Valuation for the Safety Plan documenting the City’s annual UAAL cost for Police Only, and subject to Section 3.5.2, County will credit subsequent quarterly invoices in the amount due from City to CalPERS for UAAL payments made on behalf of the Safety members from prior law enforcement service.

3.5.2 Under no circumstances will this credit exceed County's Total UAAL attributed to the Half Moon Bay Agreement or result in City’s obligation for retirement costs to County being below the County’s normal cost as reflected in the annual actuarial valuation provided by SamCERA.

3.5.3 It is City’s responsibility to provide County with an official CalPERS report detailing the amount of UAAL for Police Only. The credit will not include any amounts paid for other Safety members including Fire or non-Safety members.

3.5.4 In determining the threshold for normal cost, if County does not receive its annual SamCERA actuarial report prior to the first invoice, normal cost will be calculated using the prior year’s SamCERA actuarial report until the new report is received.

The invoice immediately following receipt of the SamCERA report will reflect a retroactive adjustment due to the change in normal cost, when such change results in a reduction or addition to City liability to County.

3.5.5 City must provide County with proof of payment by July 31st of each year. If 301

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payment made to CalPERS for purposes identified in 3.5.1 is less than the applied credit, City will be billed for the difference. If payment made to CalPERS for purposes identified in 3.5.1 is higher than the credit received, City will receive a retroactive adjustment subject to section 3.5.2 on the first invoice immediately following receipt of proof of such payment.

3.5.6 City will receive a credit that is based on the amortization of side fund payment and other UAAL contributions identified in future valuations for police subject to limitations identified in section 3.5.2. This credit will be adjusted annually to reflect actual payments.

3.5.7 Proof of payment shall be a copy of canceled check in addition to any documentation sent to CalPERS with the payment.

4. TERM.

4.1 This Agreement shall be in full force and effect from: JULY 1, 2025 to JUNE 30, 2030.

4.2 City shall notify County by each January 1
st of its desire for the Sheriff’s Office to continue
to provide law enforcement services for and on behalf of City within the territorial limits of City, and the parties shall thereafter endeavor to reach a mutual agreement for said law enforcement services to take effect upon expiration of this Agreement.

5. RIGHT OF TERMINATION.

5.1 Either party may terminate this Agreement with or without cause effective as of the first day of July of the following year upon written notice to the other party of not less than twelve (12) months prior thereto.

5.2 In the event of termination, each party shall fully discharge all obligations owed to the other party accruing prior to the effective date of such termination, and, except as otherwise provided herein, each party shall be released from all obligations which would otherwise accrue subsequent to the date of termination.

5.3 The City may terminate this Agreement or a portion of the services referenced in the Exhibits based upon City’s unavailability of funds, by providing written notice to County as soon as is reasonably possible after the City learns of said unavailability of funding.

5.4 If City terminates for non-appropriation, it will be liable to pay County for: (1) the portion of the contract costs attributable to all services performed, on or before the effective date of the termination; and (2) reasonable costs and expenses that County incurs as a result of early termination of the Agreement.

6. HOLD HARMLESS.

6.1 City shall defend, hold harmless and indemnify County, its officers, agents, and/or employees from any and all claims for injuries to persons and/or damage to property which arise out of the terms and conditions of this Agreement and which result from the negligent acts or omissions of City, its officers, agents and/or employees.

6.2 County shall defend, hold harmless and indemnify City, its officers, agents and/or employees from any and all claims for injuries to persons and/or damage to property which arise out of the terms and conditions of this Agreement and which result from the negligent 302

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acts or omissions of County, its officers, agents, and/or employees.

6.3 In the event of the concurrent negligence of City, its officers, agents and/or employees, and County, its officers, agents and/or employees, then the liability for any and all claims for injuries or damages which arise out of the terms and conditions of this Agreement shall be apportioned under California’s Theory of Comparative negligence as presently established or may be hereafter modified.

7. INSURANCE.

7.1 Both parties shall maintain sufficient insurance, self-insurance or a combination thereof to comply with the following requirements, and, if requested, each party shall furnish the other party with certificates of insurance evidencing the required coverage. Thirty (30) days' notice must be given, in writing, to County of any pending change in the limits of liability or of any cancellation or modification of the policy.

7.1.1 Worker's Compensation and Employer's Liability Insurance. Both parties shall have in effect during the entire life of this Agreement Worker’s Compensation and Employer's Liability Insurance, or an acceptable program of self-insurance providing full statutory coverage. In signing this Agreement, parties certify, as required by Section 1861 of the California Labor Code, that they are aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of the Code, and parties will comply with such provisions before commencing the performance of the work of this Agreement.

7.1.2 Liability Insurance. City and County shall take out and maintain during the life of this Agreement such Bodily Injury Liability and Property Damage Liability Insurance for services covered by this Agreement from any and all claims for damages for bodily injury, including accidental death, as well as any and all claims for property damage which may arise from City’s and County’s operations under this Agreement, whether such operations be by himself/herself or by any sub-contractor or by anyone directly or indirectly employed by either of them. Such insurance shall be combined single limit bodily injury and property damage for each occurrence and shall be not less than the amount specified below.

Such insurance shall include:
 Comprehensive General Liability $5,000,000
 Motor Vehicle Liability Insurance $5,000,000

8. NON-DISCRIMINATION AND OTHER REQUIREMENTS.

8.1 Section 504. City and County shall comply with § 504 of the Rehabilitation Act of 1973, and the Americans with Disabilities Act of 1990, as amended, which provide that no otherwise qualified handicapped individual shall, solely by reason of a disability, be excluded from the participation in, be denied the benefits of, or be subjected to 303

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discrimination in the performance of this Agreement, and that reasonable and legallyspecified accommodations will be made to serve individuals with disabilities.

8.2 General Non-discrimination. No person shall, on the grounds of race, color, religion, ancestry, gender, age (over 40), national origin, medical condition (cancer), physical or mental disability, sexual orientation, pregnancy, childbirth or related medical condition, marital status, or political affiliation be denied any benefits or subject to discrimination under this Agreement.

8.3 Equal Employment Opportunity. City and County shall ensure equal employment opportunity based on objective standards of recruitment, classification, selection, promotion, compensation, performance evaluation, and management relations for all employees under this Agreement. City’s and County’s equal employment policies shall be made available to either party upon request.

8.4 Violation of Non-discrimination Provisions. Violation of the non-discrimination provisions of this Agreement shall be considered a breach of this Agreement and may result in termination of this Agreement, and /or legal action to recover any Court-imposed damages incurred as a result of said violation(s). To effectuate the provisions of this section, the County Manager and City Manager may request authorization to examine City’s or County’s employment records relating to this Agreement, as the case may be with respect to compliance with this paragraph, and City and County shall not unduly withhold authorization.

8.5 Compliance with Equal Benefits Ordinance. With respect to the provision of employee benefits, City shall comply with the County Ordinance which prohibits contractors from discriminating in the provision of employee benefits between an employee with a domestic partner and an employee with a spouse.

8.6 Other Statutory Compliance. City and County shall comply fully with the nondiscrimination requirements required by 41 CFR 60-741.5 (a), which is incorporated herein as if fully, set forth. All services to be performed pursuant to this Agreement shall be performed in accordance with all applicable Federal, State, County, and municipal laws, including, but not limited to, Health Insurance Portability and Accountability Act of 1996 (HIPAA) and all Federal regulations promulgated thereunder, as amended.

8.7 Compliance with Contractor Employee Jury Service Ordinance. City and County shall comply with the County Ordinance with respect to provision of jury duty pay to employees and have and adhere to a written policy that provides that its employees shall receive from the City, on an annual basis, no less than five days of regular pay for actual jury service in San Mateo County. The policy may provide that employees deposit any fees received for such jury service with the City or that the City deduct from the employees regular pay the fees received for jury service.

9. RETENTION OF RECORDS.

9.1 Each party agrees to provide to the other party, to any federal or state department having monitoring or reviewing authority, to County’s or City’s authorized representatives and/or their appropriate audit agencies upon reasonable notice, access to and the right to examine and audit records and documents necessary to determine compliance with relevant federal, state, and local statutes, rules, and regulations, and this Agreement, and to evaluate the quality, appropriateness and timeliness of services performed.

9.2 City and County shall maintain and preserve all financial records relating to this 304

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Agreement for a period of four (4) years from the termination date of this Agreement, or until audit findings are resolved, whichever is greater.

10. MERGER CLAUSE.

10.1 This Agreement and the Transfer Agreement including the Exhibits attached to each constitutes the sole Agreement of the parties hereto and correctly states the rights, duties, and obligations of each party as of this document's date. Any prior agreement, promises, negotiations, or representations between the parties not expressly stated in this document are not binding. All subsequent modifications to either Agreement shall be in writing and signed by the parties.

11. CONTROLLING LAW.

11.1 The validity of this Agreement and of its terms or provisions, as well as the rights and duties of the parties hereunder, the interpretation, and performance of this Agreement shall be governed by the laws of the State of California.

12. DISPUTE RESOLUTION.

12.1 Should any dispute arise out of this Agreement, the parties shall first meet and confer in an attempt to resolve the dispute. Should such efforts fail to resolve the dispute within twenty (20) days, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs.

13.FINES AND FORFEITURES.

13.1 City shall be entitled to the fines and forfeitures to which City would otherwise be entitled pursuant to Penal Code Section 1463.001, et seq.

13.2 As legally permitted and in compliance with federal, state, and local rules and regulations, City shall remain entitled to the following revenue during the duration of this agreement:
• Abandoned Vehicle Recovery
• First Chance Fee
• SB 90 Reimbursements
• Drunk Driving Cost Recovery
• Vehicle Release Fee
• Accident Reports Fee
• Crime Reports
• Good Conduct Letter
• Incident Photos
• Repo Vehicle Info Entering Fee

13.3 Unless otherwise specified in this agreement, City shall remain responsible for the billing and collection of these fees. Information obtained by County that is required by City to complete the billing will be forwarded upon the request of City. 305

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13.4 Collection of Fees.

13.4.1 Any fees collected at 330 Bradford Street by the County on City’s behalf will be collected in accordance with City’s fee schedule and shall be credited to the City’s interest-bearing account.

13.4.2 Any fees collected on behalf of the County at the Half Moon Bay Substation will be collected in accordance with the County’s fee schedule and forwarded to County in a manner that is mutually agreed upon.

13.4.3 City will provide and maintain currency drawers. The assigned Records Technician will balance the currency drawer as required by the City.

13.5 POST Reimbursements. City shall be credited for all POST reimbursements received by County for backfill of City’s assigned deputies. All other POST reimbursements will remain revenue of County.

13.6 Third Party Providers. For any costs currently charged to the Half Moon Bay Police Department, directly or indirectly, by third party providers other than the Sheriff’s Office, the City reserves the right to either recover directly, or with the County’s agreement, have those costs recovered by the County and credited against the Agreement for Law Enforcement Services with County.

14.NOTICES.

14.1 Any notice, request, demand, or other communication required or permitted hereunder shall be deemed to be properly given when deposited in the United State mail, postage prepaid, or when deposited with a public telegraph company for transmittal, charges prepaid, and addressed to:

In the case of County, to:

San Mateo County Sheriff’s Office
ATTN: Sheriff
330 Bradford Street, 5th Floor
Redwood City, CA 94063
In the case of City, to:

City of Half Moon Bay
ATTN: City Manager
537 Kelly St
Half Moon Bay, CA 94019
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IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have affixed their hands.

COUNTY OF SAN MATEO
A Political Sub-division of the
State of California
BY:

President, Board of Supervisors
DATE:

ATTEST:

BY:

Clerk of Said Board

CITY OF HALF MOON BAY
BY:

City Manager
DATE:

ATTEST:

BY:

City Clerk
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EXHIBIT A

SERVICES
Agreement for Law Enforcement Services between the
County of San Mateo and City of Half Moon Bay
In consideration of the payments set forth in Exhibit B, County shall provide City with the following services:

1. DESCRIPTION OF SERVICES PROVIDED BY COUNTY.

1.1 LAW ENFORCEMENT SERVICES.

1.1.1 The County agrees, through the Sheriff of the County of San Mateo (hereinafter referred to as “Sheriff”), to provide general law enforcement services within the corporate limits of the City to the extent and in the manner hereinafter set forth in this Agreement.

1.1.2 Except as otherwise specifically set forth in this Agreement, such services shall only encompass duties and functions of the type coming within the jurisdiction of and customarily rendered by the Sheriff under the County Charter, the statutes of the State of California, and under the City municipal codes.

1.1.3 General law enforcement services performed hereunder may include, if requested by the City, supplemental security support, supplemental sworn officer support, and supplemental professional civilian support staff.

1.2 SUPPORT SERVICES.

1.2.1 Administrative staff provided to City, as outlined in Exhibit A, will provide general administrative support and will perform the services necessary for the collection of Abandoned Vehicle Recovery Fees and Alarms Permits & Response Fees.

1.2.2 Alarm Permit & Response Fees. City shall remain responsible for the actual billing and collection of Alarms Permit and Response revenue. Administrative staff will maintain and forward the necessary information to City’s Finance Department for the billing and collection of said revenue upon request of City.

1.2.3 Records Fees. County’s Sheriff’s Records Bureau will perform the services necessary and collect fees on behalf of City for the following:
• Vehicle Release Fee
• Accident Reports
• Crime Reports
• Good Conduct Letter

2. ADMINISTRATION OF PERSONNEL.

2.1 The rendition of the services performed by the Sheriff’s Office, the standards of performance, the discipline of personnel, and other matters incident to the performance of such services and the control of personnel so employed shall remain with the County.

2.2 In the event of a dispute between the parties to this Agreement as to the extent of the duties and functions to be rendered hereunder, or level of services or manner of performance of such services, the Sheriff and the City shall meet and confer to resolve such disputes.

2.3 All City employees who work in conjunction with the Sheriff’s Office pursuant to this Agreement shall remain employees of the City and shall not have any claim or right to 308

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employment, civil service protection, salary, or benefits or claims of any kind from the County based on this Agreement.

2.4 The City shall not be called upon to assume any liability for the direct payment of any Sheriff’s Office salaries, wages, or other compensation to any County personnel performing services hereunder for said City. Except as herein otherwise specified, the City shall not be liable for compensation or indemnity to any County employee or agent of the County for injury, disability or illness arising out of services provided under this Agreement.

3. DEPLOYMENT OF PERSONNEL.

3.1 Services performed hereunder shall be developed in conjunction with the Sheriff and detailed in Exhibit A, Section 8 - Assignment / Selection of Personnel.

4. REPORTS.

4.1 The Sheriff or Sheriff’s designee shall report periodically to the City Council, at the City Manager’s discretion, all violations of law within its borders coming to the Sheriff’s attention.

Quarterly statistical reports will be provided to City by the Sheriff upon request.

5. UNIFORMS & INSIGNIA.

5.1 Personnel performing such law enforcement services as herein provided shall be in the prescribed uniform of the San Mateo County Sheriff’s Office during the performance of their duties.

5.2 Similarly, patrol vehicles used by deputies assigned to provision of services under this Agreement shall bear the markings and insignia of the Sheriff’s Office and may include the City’s logo. Any future changes to the markings and insignia of the Half Moon Bay Bureau vehicles may be made by mutual agreement of the Sheriff and the City Manager.

5.3 If the City should desire any customization of uniforms or insignia relative to services provided, the City shall notify Sheriff of same, and the Sheriff in their sole discretion may decide whether it is feasible and agreeable to do so. In that case, the cost of modification to uniforms and/or insignia shall be borne by the City.

6. CITY OBLIGATIONS.

6.1 City shall furnish at its own cost and expense all necessary office space, furniture and furnishings, office supplies, janitorial service, telephone, light, water and other utilities, in order for the Sheriff to maintain a substation office in the City. The area to be utilized for the substation is located at 537 Kelly St in Half Moon Bay.

6.2 It is expressly further understood that such areas may be used by the Sheriff or the County of San Mateo in connection with the performance of duties in territory outside of City and adjacent thereto.

6.3 Notwithstanding the foregoing, it is agreed that in all instances where special supplies, stationery, notices, forms, and the like must be issued in the name of City, the same shall be supplied by said City at its own cost and expense.

7. PERFORMANCE OF AGREEMENT.

7.1 For the purpose of performing said general law enforcement services, County shall furnish and supply all necessary labor, supervision, equipment and supplies necessary to maintain the agreed level of services to be rendered hereunder.

7.2 Notwithstanding the foregoing, the City may provide additional resources for the County to 309

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utilize in performance of the services.

8. ASSIGNMENT/SELECTION OF PERSONNEL.

8.1 Assigned Personnel.

POSITION # of FTE
Captain 0.75
Sergeants 2.00
Deputies 9.00
Community Service Officers (1 FT) 1.00
Administrative Assistant 0.50
Records Technician 1.00
TOTAL # (FTE) 14.25

9. ASSIGNMENT OF SPECIFIC PERSONNEL.

9.1 In the event that the position of Captain assigned to the City (via this Agreement) needs to be filled, the Sheriff will provide City with up to three (3) candidates for consideration, contingent upon availability and vacancies in the Captain classification. City Manager shall select one of the three candidates.

9.2 The City Manager may request reassignment of personnel assigned to the City at any time.

The Sheriff and City Manager shall meet and confer regarding the request within ten (10) days.
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EXHIBIT B

RATES / PAYMENTS
Agreement for Law Enforcement Services between the County of San Mateo and City of Half Moon Bay In consideration of the services described in Exhibit A, City shall pay County based on the following fee schedule:

1. CHARGES FOR SERVICES.

1.1 City shall pay County for services described in this Agreement as calculated based on the formulas set forth in Section 6, Calculated Rates, attached hereto and incorporated by reference herein.

1.2 Section 6, Calculated Rates, shall be readjusted by the County annually effective July 1 of each year and attached hereto as an updated / revised Section 6.

2. INVOICING / BILLING.

2.1 On a quarterly basis in accordance with Section 3 below, Sheriff’s Office Fiscal Services Bureau shall submit an invoice to the City. At the end of each fiscal year, the Sheriff’s Office will reconcile the amount in this Agreement against the actual cost of services delivered.

Any surplus funds will be set aside in an interest-earning account held by the County and available to the City to cover potential future deficits or other one-time needs. However, if this excess revenue exceeds $1M, the balance exceeding $1M will be returned to the City at year-end for the City to utilize at its discretion.

2.2 Payments and questions regarding invoicing shall be directed to the Sheriff’s Office Fiscal - Invoicing at [email protected] or be mailed to:

San Mateo County Sheriff’s Office
Fiscal Services Bureau
330 Bradford Street, 5th floor
Redwood City, CA 94063

3. PAYMENTS.

3.1 Total charges due for the period of July 1, 2025 through June 30, 2026 are $ 6,643,773.

Invoices will be issued according to the following schedule:

Invoice Issued Amount
July 1, 2026 $ 1,660,943.25
October 1, 2026 $ 1,660,943.25
January 1, 2027 $ 1,660,943.25
April 1, 2027 $ 1,660,943.25
NOTE: UAAL credits are not reflected in the above amounts.

3.2 Future Fiscal Year payments will be in accordance with the revised Calculated Rates effective July 1 of each year. Payments will be due the first day of each quarter for each subsequent year of this Agreement.

4. BOOKING / MESSAGE SWITCH/ FORENSIC LABORATORY FEES.
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4.1 City shall not be responsible for paying Jail Access Fees, Booking Fees, Message Switch Fees, or Forensic Laboratory Fees to the County.

5. JOINT POWERS AGREEMENTS.

5.1 City shall continue to be responsible for fees set forth in the Joint Powers Agreements pertaining to the Narcotics Task Force (NTF) Department of Emergency Management (DEM).

6. CALCULATED RATES.

6.1 Rates for FY 2025-26 are outlined below.
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6.2 The average overtime hourly rates for supplemental services described in Exhibit A are as follows:
*Rates subject to change based on union negotiated rates and benefits 313
AMENDMENT NO. 1 I AGREEMENT FOR LAW ENFORCEMENT SERVICES 1 San Mateo County Sheriff’s Office I City of Half Moon Bay

AMENDMENT ONE

AGREEMENT FOR LAW ENFORCEMENT SERVICES

BETWEEN THE COUNTY OF SAN MATEO AND CITY OF HALF MOON BAY This FIRST AMENDMENT to the Agreement for Law Enforcement Services, dated for reference purposes only as of June 30, 2026, is made between the County of San Mateo, hereinafter referred to as “County” and the City of Half Moon Bay, hereinafter referred to as “City.” * * * * *

W I T N E S S E T H
WHEREAS, on July 1, 2025, County and City entered into an Agreement for the performance of the agreed upon law enforcement services within the City’s boundaries by the County through the Sheriff; and WHEREAS, both parties now wish to amend the Law Enforcement Services Agreement to incorporate the FY 2026-27 costs set forth in Exhibit B.

Now, therefore, it is hereby agreed by the parties hereto as follows:

1. “Exhibit B - Rates / Payments”, to the Agreement is hereby deleted in its entirety and replaced with “Exhibit B - FY 2026-27 Rates / Payments”, attached hereto and incorporated herein by reference.

2. This Amendment One is hereby incorporated and made a part of the original Agreement and is subject to all provisions therein. All other terms of the original Agreement not in conflict with Amendment One remain in effect and are incorporated by reference. 314
IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have affixed their hands.

COUNTY OF SAN MATEO
A Political Sub-division of the
State of California
BY:
________________________________________________

SHERIFF KENNETH BINDER
DATE: ___________________________

CITY OF HALF MOON BAY
BY:
______________________________________________

CITY MANAGER
DATE: ________________________

APPROVED AS TO FORM
__________________________________

CITY ATTORNEY
ATTEST:

BY: _______________________________________

CITY CLERK
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EXHIBIT B
FY 2026-27 RATES / PAYMENTS
Agreement for Law Enforcement Services between the County of San Mateo and City of Half Moon Bay In consideration of the services described in Exhibit A, City shall pay County based on the following fee schedule:

1. CHARGES FOR SERVICES.

1.1 City shall pay County for services described in this Agreement as calculated based on the formulas set forth in Section 6, Calculated Rates, attached hereto and incorporated by reference herein.

1.2 Section 6, Calculated Rates, shall be readjusted by the County annually effective July 1 of each year and attached hereto as an updated / revised Section 6.

2. INVOICING / BILLING.

2.1 On a quarterly basis in accordance with Section 3 below, Sheriff’s Office Fiscal Services Bureau shall submit an invoice to the City. At the end of each fiscal year, the Sheriff’s Office will reconcile the amount in this Agreement against the actual cost of services delivered. Any surplus funds will be set aside in an interest-earning account held by the County and available to the City to cover potential future deficits or other one-time needs. However, if this excess revenue exceeds $1M, the balance exceeding $1M will be returned to the City at yearend for the City to utilize at its discretion.

2.2 Payments and questions regarding invoicing shall be directed to the Sheriff’s Office Fiscal - Invoicing at [email protected] or be mailed to:

San Mateo County Sheriff’s Office
Fiscal Services Bureau
330 Bradford Street, 5th floor
Redwood City, CA 94063

3. PAYMENTS.

3.1 Total charges due for the period of July 1, 2026 through June 30, 2027 are $7,251,351. Invoices will be issued according to the following schedule:

Invoice Issued Amount
July 1, 2026 $1,812,837.75
October 1, 2026 $1,812,837.75
January 1, 2027 $1,812,837.75
April 1, 2027 $1,812,837.75
NOTE: UAAL credits are not reflected in the above amounts.

3.2 Future Fiscal Year payments will be in accordance with the revised Calculated Rates effective July 1 of each year. Payments will be due the first day of each quarter for each subsequent year of this Agreement.
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4. BOOKING / MESSAGE SWITCH/ FORENSIC LABORATORY FEES.

4.1 City shall not be responsible for paying Jail Access Fees, Booking Fees, Message Switch Fees, or Forensic Laboratory Fees to the County.

5. JOINT POWERS AGREEMENTS.

5.1 City shall continue to be responsible for fees set forth in the Joint Powers Agreements pertaining to the Narcotics Task Force (NTF) Department of Emergency Management (DEM).

6. CALCULATED RATES.

6.1 Rates for FY 2026-27 are outlined below.
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6.2 The average overtime hourly rates for supplemental services described in Exhibit A are as follows:

San Mateo County Sheriff's Office FY 2026-27 Hourly Rates* Position Overtime Rate
Sergeant (84 Plan Day) $238.70
Sergeant (84 Plan Night) $250.64
Deputy Sheriff (84 Plan Day) $195.31
Deputy Sheriff (84 Plan Night) $205.26
Detective Deputy Sheriff $204.97
Community Services Officer II $68.49
Administrative Assistant $99.15
Criminal Records Technician II (Day) $68.59
*Rates subject to change based on union negotiated rates and benefits 318