Agenda packet, regular meeting — Half Moon Bay City Council, August 18, 2026 (part 2 of 3)

PROJECT BACKGROUND:

The Housing Element is one of the seven required general plan elements mandated by California state law. Each city and county must adopt a housing element that conforms to the detailed statutory requirements established in Article 10.6 (Sections 65580 to 65589.8) of the Government Code. The City’s Housing Element must be updated every eight years and certified by the California Department of Housing and Community Development (HCD). According to State law, all housing elements must identify and analyze existing and projected housing needs; affirm goals and policies; establish quantified objectives; identify financial and other resources; consider constraints to housing opportunities; and provide scheduled programs for the preservation, improvement, and development of housing.

On October 20, 2020, the City adopted the Local Coastal Land Use Plan (LUP or LCLUP), which was certified by the California Coastal Commission on April 15, 2021. The LUP anticipated the upcoming Housing Element cycle by including new land use designations and requiring rezonings for higher density housing. These requirements were carried into the Housing Element.

The LUP is the governing land use document in the City of Half Moon Bay. It supersedes the Municipal Code/IP, regardless of whether rezonings were completed. Therefore, amendments to the Municipal Code discussed herein, such as upzoning from R-2 to R-3 and application of the Workforce Housing Overlay, are already implemented by City staff in the course of project review. Appendix A in the LUP includes tables that summarize updates necessary to bring the Municipal Code/IP into conformance with the 2020 LUP. Table A-1 lists each land use map designation change brought forward with the 2020 LUP and the associated amendments required for the Zoning Map. With the exception of the by-right approval process, most of the Municipal Code/IP amendments were approved by City Council first as part of the LUP and then again as part of the Housing Element.

The rezonings included in the LUP Appendix A and specific policies related to the Workforce Housing Overlay are included in the table below. Any rezonings that are not included as part of this IP amendment, such as application of the WHO on agricultural lands, will be included in the comprehensive IP update project scheduled to be completed by December 2027. 237

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Page A-7
Site 1985/96
Designation
2020
Designation
Anticipated
Zoning
900, 926, 940 Main St; both sides of Poplar
St between Cabrillo Hwy and Main St
Residential –
Medium Density
Residential –
High Density
R - 3
Page A-9
Topic Related LUP Policies Scope/Notes
Workforce Housing Overlay 2-70, 2-94, 2-98, 2-104,
2-107
Establish new overlay district with
affordability requirements,
development standards, etc…
On November 4, 2025, City Council adopted Half Moon Bay’s Sixth Cycle Housing Element following Planning Commission’s October 28, 2025, recommendation for adoption.

On February 2, 2026, HCD responded to the City with a letter stating that the adopted Housing Element meets the statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq)) (Attachment 4). HCD continued by stating:

However, the housing element cannot be found in substantial compliance until the City has completed necessary rezones to address the shortfall of sites to accommodate the regional housing need allocation (RHNA) (See Below). The housing element will substantially comply with State Housing Element Law (Gov.

Code, § 65580 et seq) when all necessary rezonings are completed, submitted to, and approved by HCD, in accordance with Government Code section 65585.

The letter continues by identifying Housing Element Programs 1-1 and 1-10 as the programs that require completion. The text of these programs are provided below:

Program 1-1: Provision of Adequate Sites
The LCLUP serves as the City’s General Plan Land Use Element. The updated LCLUP establishes land use designations with residential densities that support development of affordable housing consistent with the City’s RHNA in the Town Center, on Workforce Housing Overlay sites, and as infill development on vacant sites throughout the City’s substantially developed neighborhoods. The City will bring forward specified zoning amendments to implement the LCLUP which will also implement the Housing Element, its Housing Opportunity Sites, as well as other properties. Amendments include:
• Town Center rezonings including upzones from R-2 to R-3 to enable multiple Housing Opportunity Sites, including Site 11 (940 Main Street). 238

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• Workforce Housing Overlay (WHO) zoning overlay established for specified sites in the Public Services (PS), Rural Coastal (RC, district to be established per the LCLUP), and Agricultural Land Use (A-1) zoning districts • Expansion of the Mobile Home Park (MHP) zoning district for the Hilltop Mobile Home Park
• Addition of mixed-use zoning allowances in the Industrial (IND) zoning district
• If the City has not made substantial progress by the 2027 APR (March 2028) in terms of meeting RHNA and development on sites, including pipeline sites, then the City will pursue a public process to identify and rezone additional sites by end of September 2029, with a January 2030 effective date.

Program 1-10: Sites Identified in Prior Planning Periods Modify the Zoning Ordinance so that parcels in the Site Inventory identified as Reuse Sites (Sites 8, 9, 10, and 11) allow for by-right processing (ministerial review) for housing developments that propose at least 20 percent of the units be affordable to lower-income households, in accordance with Government Code § 65583.2I.

The City is addressing Programs 1-1 and 1-10 in this current rezoning to the extent that is required for HCD to find the Housing Element in substantial compliance with Housing Element Law. These programs will be further fulfilled as part of the Implementation Plan Update, which was recently initiated by the City. In Program 1-1, HCD is particularly concerned with the two components that increase density:
• Program 1-1:
o Town Center rezonings including upzones from R-2 to R-3 to enable multiple Housing Opportunity Sites.
o Workforce Housing Overlay (WHO) zoning overlay established for specified sites in the Public Services (PS), Rural Coastal (RC, district to be established per the LCLUP), and Agricultural Land Use (A-1) zoning districts
• Program 1-10:
o Modify the Zoning Ordinance so that parcels in the Site Inventory identified as Reuse Sites (Sites 8, 9, 10, and 11) allow for by-right processing (ministerial review) for housing developments that propose at least 20 percent of the units be affordable to lower-income households, in accordance with Government Code § 65583.2I.

Project Timeline:
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Housing Element adoption in 2025 was the culmination of a multi-year process beginning in 2021, during which staff facilitated a variety of outreach activities to gather input from the community, stakeholder groups, and with the City Council and Planning Commission.

Following adoption, City staff have been in contact with HCD regarding Housing Element certification and next steps. This included two meetings in January in advance of receiving the February 2 letter, on January 16 and January 29, where HCD discussed the rezoning requirements and received updates from the City.

While City staff were working on Municipal Code amendments, HCD sent a letter of inquiry on March 1, followed by a Notice of Violation on March 24 (Attachment 5). This letter stated that the City was in violation of Housing Element Law.

City staff followed up with a meeting with HCD staff on April 10 to discuss a schedule for adoption of Municipal Code amendments, other next steps, and a review of preliminary drafts of the amendments. This was followed by an additional meeting with HCD on June 10 to finalize the draft Municipal Code/IP amendments that would be reviewed by Coastal Commission staff.

Concurrent with HCD review, California Coastal Commission staff reviewed the draft Municipal Code amendments. City staff had a meeting to discuss these amendments with Coastal Commission staff on June 25, 2026. On July 7, 2026, Coastal Commission staff informed City staff by email that they could continue with the proposed amendments.

City staff was unable to get a quorum of Planning Commissioners for the July 28, 2026, meeting and scheduled a special meeting on August 5, 2026, for a public hearing on the Municipal Code/IP amendments.

On July 16, the California Attorney General filed a lawsuit against the City alleging failure to comply with Housing Element Law. The Complaint is attached to this staff report as Attachment 6.

At a special meeting on August 5, 2026, the Planning Commission voted 4-1 to approve Resolution P-26-15 (Attachment 1) recommending that City Council adopt an ordinance (Attachment 2) amending the Municipal Code/IP and directing staff to forward the amendments to HCD for approval and to the California Coastal Commission for certification.

Although not part of the ordinance, the Planning Commission also recommended to City Council that, after the Housing Element is certified, staff returns to Planning Commission with an additional site(s) to offset the Housing Element unit requirements at 300 Church Street, and seek an amendment to the Housing Element.

DISCUSSION:

The Municipal Code amendments prepared in order to implement the Sixth Cycle Housing Element and bring Half Moon Bay into substantial compliance with State Housing Element Law include four amendments:
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• Zoning Map Amendments
• Revisions to Chapter 18.20 Local Coastal Development Permits • New Chapter 18.43 Higher Density Workforce Housing
• New Chapter 18.44 By-Right Affordable Housing Development These proposed amendments are provided as Attachment 2 (the proposed ordinance) to this staff report. The revised zoning map is included in Attachment 2 and an unofficial, but more descriptive map is included as Attachment 3.

Zoning Map Amendments
As part of the proposed Municipal Code amendments, 10 sites are to be rezoned from R-2 to R3. This rezoning provides sufficient capacity for By-Right Affordable Housing Development on the sites, as Government Code Section 65582.2(c)(3)(B)(iii) requires at least 20 dwelling units per acre, while R-2 zoning only allows 17.42 dwelling units per acre. R-3 zoning allows 29.04 dwelling units per acre.

The applicable sites, their APNs, existing zoning, and proposed zoning, are provided in the table below:

Address APN Existing
Zoning
Proposed
Zoning
500 Block Poplar Street 064-244-040 R-2 R-3
500 Block Poplar Street 064-244-030 R-2 R-3
604 Poplar Street 064-272-010 R-2 R-3
604 Poplar Street 064-272-020 R-2 R-3
604 Poplar Street 064-272-030 R-2 R-3
600 Block Poplar Street 064-272-170 R-2 R-3
600 Block Poplar Street 064-272-180 R-2 R-3
600 Block Poplar Street 064-272-190 R-2 R-3
600 Block Poplar Street 064-272-200 R-2 R-3
940 Main Street 064-272-100 R-2 R-3
Chapter 18.20 Local Coastal Development Permits
This amendment modifies the language of 18.20.055(A), clarifying that a public hearing shall not be required for By-Right Affordable Housing Development applications per Chapter 18.44.

This amendment is required by Government Code Section 65583.2(i), stating that “by right” developments cannot require a discretionary local government review or approval.

Chapter 18.43 Higher Density Workforce Housing
This amendment introduces a new chapter that provides new workforce housing using the WHO, as defined in the LUP. Specifically, it applies to the sites designated to provide capacity to 241

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meet the City’s lower-income Regional Housing Needs Assessment (RHNA) listed in the City of Half Moon Bay 6th Cycle (2023-2031) Housing Element sites inventory.

This amendment is required by Government Code Section 65583.2(h), requiring site capacity for lower income households on sites that shall be zoned to permit residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.

The amendment identifies four applicable sites for the Higher Density WHO, their APN, underlying zoning, and the overlay density in Table 18.43.015 Applicable Sites.

Address APN Underlying
Zoning
Overlay
Density
830 Stone Pine Road* 056-590-010 P-S 30 du/ac
498 Kelly Avenue* 056-181-010 P-S 30 du/ac
300 Block Church Street* 056-150-020 P-S 45 du/ac
0 Block Stone Pine Road 056-250-070 P-S 30 du/ac
* This site is also in the By-Right Affordable Housing Development (Chapter 18.44) Subsection 18.43.020 allows residential uses, requiring at least 20 percent of residential units to be affordable, subject to deed restrictions and conditions of approval designed to ensure the housing will be affordable to the specified workforce, along with other requirements:

A. Higher Density Workforce Housing units shall be affordable to extremely low, very low, low-income, or moderate-income households.

B. Subdivision of land to accommodate workforce housing is allowed only if the use of the site established for the workforce housing is deed-restricted to school district workforce housing or affordable housing.

In subsection 18.43.025, the amendment clarifies that other development standards are those applicable to the underlying zoning district.

Chapter 18. 44 By-Right Affordable Housing Development
This amendment introduces a new chapter that provides a by-right approval pathway for qualifying projects on specific sites in Half Moon Bay that were identified during the Housing Element process to provide capacity for the City’s lower-income RHNA.

This amendment is required by Government Code Section 65583.2(c), (h), and (i), which set affordability criteria and approval requirements for these projects. 242

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The amendment identifies 14 applicable sites for By-Right Affordable Housing Development, their APN, underlying zoning, their maximum density, and the relevant use & development standards chapter of the Municipal Code/IP in Table 18.44.015 Applicable Sites:

Address APN Underlying
Zoning
Maximum
Density
Use &
Development
Standards
Chapter
830 Stone Pine Road* 056-590-010 P-S 30 du/ac Ch. 18.09 498 Kelly Avenue* 056-181-010 P-S 30 du/ac Ch. 18.09
300 Block Church Street* 056-150-020 P-S 45 du/ac Ch. 18.09 101 Canada Cove Avenue 066-081-190 MHP 21.78 du/ac Ch. 18.17 500 Block Poplar Street** 064-244-040 R-3 29.04 du/ac Ch. 18.06 500 Block Poplar Street** 064-244-030 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street** 064-272-010 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street** 064-272-020 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street** 064-272-030 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street** 064-272-170 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street** 064-272-180 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street** 064-272-190 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street** 064-272-200 R-3 29.04 du/ac Ch. 18.06 940 Main Street** 064-272-100 R-3 29.04 du/ac Ch. 18.06 * This site is also in the Higher Density WHO (Chapter 18.43). Maximum density for these sites is per this overlay, see Table 18.43.015.
** This site is rezoned from R-2 to R-3 as part of the Municipal Code Amendments Subsection 18.44.020 provides affordability criteria that applications must meet to be eligible for by-right housing:
a. At least 20 percent of the units proposed are affordable to lower income households, as defined in Health and Safety Code Section 50079.5, and is a household whose income is equal to or less than eighty percent of the area median income, as published by the California Department of Housing and Community Development. A "housing development project" shall have the same meaning as defined in Government Code Section 65589.5(h)(2).
b. These sites shall be developed at a minimum density of 20 units per acre Subsection 18.44.025 provides approval requirements for eligible applications:

A. Sites subject to by-right approval that are located within the Coastal Zone shall also be subject to an administrative Coastal Development Permit, if a permit is required, per Chapter 18.20.025.

B. The Director shall approve, conditionally approve, or deny an application for development per this chapter (Chapter 18.44).
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C. Public notice, appeals, and hearings apply to by-right review as follows:

1. Notice Required. Notice of the intent to approve a by-right application, or approve with conditions, shall be mailed by the Director to the applicant. In the event the Director acts to deny the application, the Director shall notify the applicant of the right to appeal the denial to the Planning Commission.

2. Appeals. Notwithstanding Chapter 1.25 of the Municipal Code, no appeal of an approval of a By Right Affordable Housing Development Project subject to this Chapter shall be allowed. The project applicant has the right to appeal a denial of a By Right Affordable Housing Development Project utilizing the procedures set forth in Chapter 1.25.

3. Hearings. No public hearing shall be required for by-right review. a. No hearing is required for a Local Coastal Development Permit for an application under this chapter (Chapter 18.44), see 18.20.055(A)(2).

LUP Consistency
The LUP states the following:

In order to provide housing affordable to the local workforce and maximize opportunities for people of all income levels to access and live on the coast, this LUP establishes affordable housing as a Local Priority Use and introduces a WHO land use designation; which are Coastal Act Priority Uses when specifically associated with agricultural uses, as is all farmworker housing….With diverse and affordable housing as a pillar of the LUP it is the City’s intention to harmonize the goals of the Coastal Act with those of State Housing law and the City’s Housing Element.

Several LUP policies aim to satisfy the LUP goal of providing affordable housing and support the rezonings required through the sixth cycle Housing Element.

Policy 2-3 creates a hierarchy of priority uses. First are those uses defined as priorities in the Coastal Act and second, are those additional uses defined as priorities by the City.

Policy 2-3. Priority Land Uses. Define priority land uses and support development of such land uses throughout the City by the following categories: a. Coastal Act Priority Uses: Coastaldependent uses, agricultural uses, visitor-serving commercial uses, and coastal access and recreational facilities. Coastal Act Priority Uses are considered top tier priority in this LCP; and furthermore, as consistent with Coastal Act Section 30222, coastal-dependent industry and agriculture take precedence over all other uses including visitor-serving commercial recreation facilities. b. Local Priority Uses: Affordable dwelling units for extremely low, very low, and lowincome households. Local Priority Uses are considered second tier priority behind Coastal Act Priority Uses in this LCP.
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The Municipal Code/IP amendments do not conflict with Coastal Act Priority Uses and are located in areas designated for higher density housing specifically to avoid such use conflicts.

The amendments support the Local Priority Use of creating more affordable housing. 2-5. Housing Element Conformance. To ensure conformance with Coastal Act policies and priorities, focus the Housing Element’s inventory of adequate [housing] sites within Town Center and through the Workforce Housing Overlay land use designation.

The zoning amendments provide greater specificity for increasing density by applying the WHO in the Public Services zoning district and on certain sites within the Town Center, and by changing the zoning from R-2 to higher-density R-3 on sites located primarily in the Town Center, as identified in the sixth cycle Housing Element. 2-102. Workforce Housing Overlay – Public Facilities and Institutions. Apply the Workforce Housing Overlay to portions of lands in the Public Facilities and Institutions land use designation.

The overlay areas shall comply with the following requirements: a. The following locations and amount of housing may be considered for application of the Workforce Housing Overlay in the Public Facilities and Institutions land use designation: Public Schools: Up to 40 units may be developed at the Cabrillo Unified School District campuses. Units may be distributed amongst the different campuses, such as 10 units at Hatch Elementary/Pilarcitos High School, 20 units at Cunha Middle School, and 10 units at Half Moon Bay High School. At least one resident of each workforce housing unit shall be a full-time employee of the Cabrillo Unified School District.

Other Public and Quasi-public Uses: Up to 10 units may be developed at the City of Half Moon Bay Ted Adcock Center; up to 40 units at the 515 Kelly Avenue Catholic Church; and up to 7 units at the 900 Cabrillo Highway North Lutheran Church. The units developed for this category shall be affordable to extremely low, very low, and low-income households. b. Subdivision of land to accommodate workforce housing is allowed only if the use of the site established for the workforce housing is permanently limited to school district workforce housing or affordable housing.

In the proposed amended Section 18.43.020(a) of the Municipal Code/IP, the WHO is applied to parcels in the Public Facilities and Institutions land use designation that were also specifically required in the Housing Element.

CEQA
On November 4, 2025, the City Council adopted Resolution No. 2025-73 and thereby adopted the Mitigated Negative Declaration for the 2023-2031 (6th Cycle) Housing Element (the “MND”).

The Municipal Code amendments prepared in order to implement the Sixth Cycle Housing Element are covered by the MND and none of the circumstance under CEQA Guidelines Section 15162 that would require preparation of a subsequent EIR or negative declaration exist.

Additionally, Public Resources Code Section 21080.9 exempts amendments to certified Local Coastal Programs from CEQA.

Conclusion
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Based on the above analysis, staff concludes that with approval of these Municipal Code/IP amendments, the Housing Element can be found by HCD to be in substantial compliance with State Housing Element Law. The amendments are consistent with the General Plan Housing Element and the Local Coastal Land Use Plan. Staff recommends that the Planning Commission approve the Draft Resolution recommending that City Council adopt an ordinance amending the Municipal Code/IP and directing staff to forward the amendments to HCD for approval and to the California Coastal Commission for certification.

Public Comment
A hearing notice was published in the Half Moon Bay Review on August 7, 2026. Notices were mailed to all property owners and residents within 300 feet of zoning areas being revised on August 10, 2026.

ATTACHMENTS

1. Planning Commission Resolution

2. Draft Ordinance

3. Map of Rezonings

4. HCD Letter to Half Moon Bay Dated February 2, 2026

5. HCD Letter to Half Moon Bay Dated March 24, 2026

6. The State vs. City of Half Moon Bay complaint, dated July 16, 2026

7. Public Comments
246
PLANNING COMMISSION RESOLUTION P-26-15

RESOLUTION FOR APPROVAL
PDP-26-047

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HALF MOON BAY

RECOMMENDING THAT CITY COUNCIL ADOPT AN ORDINANCE AMENDING THE MUNICIPAL

CODE/LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN (IP) TO IMPLEMENT PORTIONS OF THE

LOCAL COASTAL PROGRAM LAND USE PLAN (LUP) AND THE SIXTH CYCLE HOUSING ELEMENT WHEREAS, following Planning Commission’s September 7, 2020, recommendation for adoption, on October 20, 2020, City Council adopted Half Moon Bay’s LUP and on April 15, 2021, the California Coastal Commission certified the LUP; and WHEREAS, the LUP contains land use designations to accommodate and promote housing so that the City can reach its Regional Housing Needs Assessment numbers and those land use designations require rezonings specified in Appendix A of the LUP, which informed the Sixth Cycle Housing Element; and
WHEREAS, on November 4, 2025, City Council adopted Half Moon Bay’s Sixth Cycle Housing Element, following Planning Commission’s October 28, 2025, recommendation for adoption; and WHEREAS, on February 2, 2026, the California Department of Housing and Community Development (HCD) provided a letter to the City stating that the adopted Housing Element meets the statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq); and WHEREAS, the same HCD letter stated that the housing element cannot be found in substantial compliance with State Housing Element Law until the City has completed necessary rezones; and
WHEREAS, City staff met with HCD on January 16, January 29, May 19, April 10, and June 10 to discuss Municipal Code/IP attachments that would complete necessary rezones and bring the City into substantial compliance with State Housing Element Law; and WHEREAS, California Coastal Commission staff reviewed the IP amendments and discussed them with City staff at a meeting on June 25, 2026, and informed City staff on July 7 that they could proceed with the amendments; and
WHEREAS, on November 4, 2025, the City Council adopted Resolution No. 2025-73 and thereby adopted the Mitigated Negative Declaration for the 2023-2031 (6th Cycle) Housing Element (the MND); and
WHEREAS, the Municipal Code amendments prepared in order to implement the 6th Cycle Housing Element are covered by the MND and none of the circumstances under CEQA Guidelines Section 15162 that would require preparation of a subsequent EIR or negative declaration exist; and WHEREAS, pursuant to Public Resources Code Section 21080.9 amendments to certified Local Coastal Programs are exempt from CEQA; and
247
WHEREAS, the Planning Commission conducted a duly noticed public hearing on August 5, 2026, at which time all those desiring to be heard on the matter were given an opportunity to be heard; and
WHEREAS, the Planning Commission considered all written and oral testimony presented for consideration and added language to the ordinance to incorporate by reference the definition of the “by-right” process from Government Code section 65583.2(h)(2)(i); and WHEREAS, the Planning Commission recommends to City Council that, after the Housing Element is certified, staff returns to Planning Commission with an additional site(s) to offset the Housing Element unit requirements at 300 Church St., and seek an amendment to the Housing Element; and
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission approves Resolution No.

PDP-26-47 recommending that City Council adopt an ordinance to amend the Municipal Code and IP to implement portions of the LUP and sixth cycle Housing Element, and instructing staff to forward the amendments to HCD for approval and to the California Coastal Commission for certification.

PASSED AND ADOPTED by the City of Half Moon Bay Planning Commission at a duly noticed public hearing held August 5, 2026.

AYES, 4
NOES, 1

ABSENT,

ABSTAIN,
APPROVED:

David Gorn, Chair Leslie Lacko, Community Development Director 248
ORDINANCE NO. 2026-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AMENDING TITLE 18 (ZONING) OF THE MUNICIPAL CODE AND LOCAL COASTAL PROGRAM

IMPLEMENTATION PLAN (IP) TO IMPLEMENT ZONING CHANGES IDENTIFIED IN THE LOCAL

COASTAL PROGRAM LAND USE PLAN (LUP) AND THE SIXTH CYCLE HOUSING ELEMENT THE CITY COUNCIL OF THE CITY OF HALF MOON BAY DOES ORDAIN AS FOLLOWS:

Section 1. Findings. The City Council of the City of Half Moon Bay hereby amends Title 18 of the Half Moon Bay Municipal Code and IP by revising the Zoning Map, Chapter 18.20 (Local Coastal Development Permits), and adding new Chapters 18.43 (Higher Density Workforce Housing) and 18.44 (By-Right Affordable Housing Development).

The City Council finds and declares as follows:
a) The City of Half Moon Bay is located fully within the California Coastal Zone. b) The City of Half Moon Bay’s certified Local Coastal Program (LCP) includes an LUP and an IP, the latter of which is in part comprised of the Zoning Ordinance. c) The LUP contains land use designations to accommodate and promote housing so that the City can reach its Regional Housing Needs Assessment numbers and those land use designations require rezonings specified in Appendix A of the LUP, which informed the sixth cycle Housing Element.
d) The sixth cycle Housing Element, Program 1-1 requires upzoning of “Housing Opportunity Sites” from R-2 to R-3, specificity on application of the Workforce Housing Overlay, expansion of the Hilltop Mobile Home Park zoning district, and the addition of mixed-use zoning allowances in the Industrial (IND) zoning district. e) Housing Element Program 1-10 requires identification of sites that qualify for by-right permit processing.
f) On February 2, 2026, the California Department of Housing and Community Development (HCD) provided a letter to the City stating that the adopted Housing Element meets the statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq) and the same HCD letter stated that the housing element cannot be found in substantial compliance with State Housing Element Law until the City has completed necessary rezones.
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g) Continued non-certification of the Housing Element could result in negative fiscal impacts including civil penalties and loss of access to housing and infrastructure related State grant funds, and the city has already lost eligibility for a significant number of large dollar state and regional grant opportunities. h) City staff met with HCD on January 16, January 29, May 19, April 10, and June 10 to discuss Municipal Code/IP attachments that would complete necessary rezones and bring the City into substantial compliance with State Housing Element Law. i) California Coastal Commission staff reviewed the IP amendments and discussed them with City staff at a meeting on June 25, 2026, and informed City staff on July 7 that they could proceed with the amendments.
j) The Planning Commission conducted a duly noticed public hearing on August 5, 2026, at which time all those desiring to be heard on the matter were given an opportunity to be heard, Commissioners considered all written and oral testimony presented for consideration, and recommended that City Council adopt this ordinance amending Chapter 18 of the Municipal Code and IP.
k) LUP Consistency. In order to provide housing affordable to the local workforce and maximize opportunities for people of all income levels to access and live on the coast, the LUP establishes affordable housing as a Local Priority Use and introduces a Workforce Housing Overlay land use designation; which are Coastal Act Priority Uses when specifically associated with agricultural uses, as is all farmworker housing. With diverse and affordable housing as a pillar of the LUP it is the City’s intention to harmonize the goals of the Coastal Act with those of State Housing law and the City’s Housing Element. Several LUP policies aim to satisfy the LUP goal of providing affordable housing and support the rezonings required through the sixth cycle Housing Element.

Policy 2-3 creates a hierarchy of priority uses. First are those uses defined as priorities in the Coastal Act and second, are those additional uses defined as priorities by the City.

Policy 2-3. Priority Land Uses. Define priority land uses and support development of such land uses throughout the City by the following categories: a. Coastal Act Priority Uses: Coastal-dependent uses, agricultural uses, visitor serving commercial uses, and coastal access and recreational facilities. Coastal Act Priority Uses are considered top tier priority in this LCP; and furthermore, as consistent with Coastal Act Section 30222, coastal-dependent industry and agriculture take precedence over all other uses 250
including visitor-serving commercial recreation facilities. b. Local Priority Uses:

Affordable dwelling units for extremely low, very low, and low-income households.

Local Priority Uses are considered second tier priority behind Coastal Act Priority Uses in this LCP.

The Municipal Code/IP amendments do not conflict with Coastal Act Priority Uses and are located in areas designated for higher density housing specifically to avoid such use conflicts. The amendments support the Local Priority Use of creating more affordable housing.
2-5. Housing Element Conformance. To ensure conformance with Coastal Act policies and priorities, focus the Housing Element’s inventory of adequate [housing] sites within Town Center and through the Workforce Housing Overlay land use designation.

The zoning amendments provide greater specificity for increasing density by applying the Workforce Housing Overlay in the Public Services zoning district and on certain sites within the Town Center, and by changing the zoning from R-2 to higher-density R-3 on sites located primarily in the Town Center, as identified in the sixth cycle Housing Element.
2-102. Workforce Housing Overlay – Public Facilities and Institutions. Apply the Workforce Housing Overlay to portions of lands in the Public Facilities and Institutions land use designation. The overlay areas shall comply with the following requirements:
a. The following locations and amount of housing may be considered for application of the Workforce Housing Overlay in the Public Facilities and Institutions land use designation: Public Schools: Up to 40 units may be developed at the Cabrillo Unified School District campuses. Units may be distributed amongst the different campuses, such as 10 units at Hatch Elementary/Pilarcitos High School, 20 units at Cunha Middle School, and 10 units at Half Moon Bay High School. At least one resident of each workforce housing unit shall be a full-time employee of the Cabrillo Unified School District. Other Public and Quasi-public Uses: Up to 10 units may be developed at the City of Half Moon Bay Ted Adcock Center; up to 40 units at the 515 Kelly Avenue Catholic Church; and up to 7 units at the 900 Cabrillo Highway North Lutheran Church.

The units developed for this category shall be affordable to extremely low, very low, and low-income households. b. Subdivision of land to accommodate workforce housing is allowed only if the use of the site established for the workforce housing is permanently limited to school district workforce housing or affordable housing.

In this amended Section 18.43.020(a) of the Municipal Code/IP, the workforce housing overlay is applied to parcels in the Public Facilities and Institutions land use designation that were also specifically required in the Housing Element. 251
Section 2. Amendments. The revised Zoning Map attached hereto as Exhibit 2 and incorporated herein by reference is hereby adopted. The amendments to Title 18 of the City of Half Moon Bay Municipal Code to revise Chapter 18.20 (Local Coastal Development Permits), and add new Chapters 18.43 (Higher Density Workforce Housing) and 18.44 (By-Right Affordable Housing Development) attached hereto as Exhibit 1 and incorporated herein by reference are hereby adopted.

Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 4. CEQA. On November 4, 2025, the City council adopted Resolution No. 2025-73 and thereby adopted the Mitigated Negative Declaration for the 2023-2031 (6th Cycle) Housing Element (the MND). The Municipal Code/IP amendments prepared in order to implement the Sixth Cycle Housing Element are covered by the MND and none of the circumstances under CEQA Guidelines Section 15162 that would require preparation of a subsequent EIR or negative declaration exist. Additionally, Public Resources Code Section 21080.9 exempts amendments to certified Local Coastal Programs from CEQA.

Section 5. Publication. The City Clerk of the City of Half Moon Bay is hereby directed to publish this Ordinance pursuant to Government Code section 36933.

Section 6. Effective date. This Ordinance shall take effect and be in force on the thirtieth (30th) day from and after its final passage and upon acknowledgement by the California Coastal Commission.

INTRODUCED at a regular meeting of the City Council of the City of Half Moon Bay, California, on the 18th day of August 2026.

ADOPTED at a regular meeting of the City Council of the City of Half Moon Bay, California, held on the 1
st day of September 2026, by the following vote:

AYES,
NOES,

ABSENT,

ABSTAIN,
252
ATTEST: APPROVED:

Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
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Chapter 18.20 LOCAL COASTAL DEVELOPMENT PERMITS
[…]

18.20.055 Hearing Required.

A. A public hearing shall be required:

1. On all appealable development; and

2. Prior to the approval of any coastal development permit where the development would require a hearing as part of action on any other required permits, review, or discretionary action; provided, however, a public hearing shall not be required for By-Right Affordable Housing Development applications per Chapter 18.44.

B. Submittal of Written Comments. Any person may submit written comments to the community development director on an application for a coastal development permit, or on an appeal of a coastal development permit, at any time prior to the close of the public hearing.

C. Concurrent Processing and Hearings. A public hearing on a coastal development permit may be held concurrently with any other public hearing on the development. [..]
Chapter 18.43 Higher Density Workforce Housing

18.43.010 Purpose and intent.

The purpose of this chapter is to provide new workforce housing using the Workforce Housing Overlay, as defined in the Local Coastal Program Land Use Plan (LUP). Specifically, it applies to the sites designated provide capacity to meet the City’s lower-income Regional Housing Needs Assessment (RHNA) listed in the City of Half Moon Bay 6th Cycle (2023-2031) Housing Element sites inventory. This chapter allows residential use with increased density for workforce housing on certain designated sites where the applicable underlying zoning designation allows for public facilities and institutions uses (see Table 18.43.015). 254
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Uses, in addition to residential use, and development standards are per underlying zoning (see Chapter 18.09 Public and Quasi-Public Land Use (P-S)).

18.43.015 Applicable sites.

The following sites are eligible for residential use at the following density to meet the City’s RHNA goals:

Table 18.43.015 Applicable Sites
Address APN Underlying
Zoning
Overlay
Density
830 Stone Pine Road* 056-590-010 P-S 30 du/ac
498 Kelly Avenue* 056-181-010 P-S 30 du/ac
300 Block Church Street* 056-150-020 P-S 45 du/ac
0 Block Stone Pine Road 056-250-070 P-S 30 du/ac
* This site is also in the By-Right Affordable Housing Development (Chapter 18.44)

18.43.020 Residential Use Criteria.

Residential development established through this chapter shall be limited to the occupancy provisions specified in the subsections below, based on the applicable underlying zoning designation. All affordable Higher Density Workforce Housing units are subject to deed restrictions and conditions of approval designed to ensure the housing will be affordable to the specified workforce.

Within the Public Services (PS) zoning designation, at least 20 percent of the units shall meet the following requirements:

A. Higher Density Workforce Housing units shall be affordable to extremely low, very low, low-income, or moderate-income households.

18.43.025 Development Standards.

A. All other development standards are those applicable to the underlying zoning district.

Chapter 18.44 By-Right Affordable Housing Development

18.44.010 Purpose and intent.

The purpose of this chapter is to implement the 6th Cycle Housing Element and State Government Code sections 65583, subdivisions (c)(1) and 65583.2 subdivisions (c), (h), and (i).

In enacting this chapter, it is also the intent of the City to implement the goals, objectives, and policies of the City’s Housing Element of the General Plan.

18.44.015 Applicable sites.

This chapter applies to properties where by-right approval, as defined in Government Code section 65583.2(h)(2)(i), is required for qualifying projects pursuant to Government Code sections 65583.2(h) and 65583.2(i), as may be amended from time to time. Specifically, it applies to certain sites included in the Housing Opportunity Sites inventory in the City’s 6th Cycle Housing Element Table C-5 to provide capacity for the City’s lower-income RHNA.

The qualifying housing development projects on the following sites are eligible for by-right zoning approval:

Table 18.44.015 Applicable Sites
Address APN
Underlying
Zoning
Maximum
Density
Use &
Development
Standards
Chapter
830 Stone Pine Road* 056-260-180 P-S 30 du/ac Ch. 18.09 498 Kelly Avenue* 056-181-010 P-S 30 du/ac Ch. 18.09
300 Block Church Street* 056-150-020 P-S 45 du/ac Ch. 18.09 101 Canada Cove Avenue 066-081-190 MHP 21.78 du/ac Ch. 18.17 256
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500 Block Poplar Street 064-244-040 R-3 29.04 du/ac Ch. 18.06 500 Block Poplar Street 064-244-030 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street 064-272-010 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street 064-272-020 R-3 29.04 du/ac Ch. 18.06 604 Poplar Street 064-272-030 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street 064-272-170 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street 064-272-180 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street 064-272-190 R-3 29.04 du/ac Ch. 18.06 600 Block Poplar Street 064-272-200 R-3 29.04 du/ac Ch. 18.06 940 Main Street 064-272-100 R-3 29.04 du/ac Ch. 18.06
* This site is also in the Higher Density Workforce Housing Overlay (Chapter 18.43). Maximum density for these sites is per this overlay, see Table 18.43.015.

18.44.020 Affordability Criteria.

In addition to a housing project being located on sites above, the project must meet the affordability criteria below. Housing development projects that are ineligible for by-right approval shall be subject to the requirements for residential development in the underlying zoning district.

A. Pursuant to Government Code Section 65583.2(c) and (h), housing development projects in which:
a. At least 20 percent of the units proposed are affordable to lower income households, as defined in Health and Safety Code Section 50079.5, and is a household whose income is equal to or less than eighty percent of the area median income, as published by the California Department of Housing and Community Development. A "housing development project" shall have the same meaning as defined in Government Code Section 65589.5(h)(2). b. These sites shall be developed at a minimum density of 20 units per acre 257
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18.44.025 Approval requirements.

By-right or ministerial approval (without discretionary action) is required for sites identified in Chapter 18.44.015 for projects that meet all of the requirements of Government Code 65583.2(h) and (i) and Chapter 18.44.020 (A), provided that the project conforms with any applicable objective development standards (see “Use & Development Standards Chapter” column of Table 18.44.015).

A. Sites subject to by-right approval that are located within the Coastal Zone shall also be subject to an administrative Coastal Development Permit, if a permit is required, per Chapter 18.20.025.

B. The Director shall approve, conditionally approve, or deny an application for development per this chapter (Chapter 18.44).

C. Public notice, appeals, and hearings apply to by-right review as follows:

D. The Director may approve a project that meets the requirements of this chapter only after making the following finding:
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1. The proposed development is consistent with the objective standards of the:

General Plan, this Development Code, the City’s Local Coastal Program & Land Use Plan and other City goals, policies, and standards, as applicable.

E. In approving a by-right application, the Director may impose conditions of approval to ensure that the development will comply with the findings required by Subsection D. 259
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
February 2, 2026
Leslie Lacko, Director
Community Development
City of Half Moon Bay
501 Main Street
Half Moon Bay, CA, 94019
Dear Leslie Lacko:

RE: Half Moon Bay’s 6th Cycle (2023-2031) Adopted Housing Element Thank you for submitting the City of Half Moon Bay’s (City) housing element that was adopted November 4, 2025, and received for review on December 8, 2025. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by conversations on January 22 and 29, 2026 with City staff and consultants. In addition, HCD considered comments from Housing Leadership Council and the Coastside County Water District pursuant to Government Code section 65585, subdivision (c).

The adopted housing element meets the statutory requirements of State Housing Element Law (Gov. Code, § 65580 et seq), including findings that were described in HCD’s May 20, 2025 review. However, the housing element cannot be found in substantial compliance until the City has completed necessary rezones to address the shortfall of sites to accommodate the regional housing need allocation (RHNA) (See Below). The housing element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq) when all necessary rezonings are completed, submitted to, and approved by HCD, in accordance with Government Code section 65585.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government does not adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the RHNA pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivisions (c), (h) and (i), shall be completed no later than one year from the statutory deadline. As this year has passed and Programs 1-1 (Provision of Adequate Sites) and 1-10 (Sites Identified in Prior Planning Periods) have not been completed, the housing element is out of compliance and will remain out of compliance until the rezones have been completed. Once the City completes the rezones, a copy of the resolution or ordinance should be transmitted to HCD. HCD will 264
Leslie Lacko, Director

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review the documentation and issue correspondence identifying the updated status of the City’s housing element compliance.

As a reminder, the City’s 6th cycle housing element was due January 31, 2023. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to expeditiously complete rezoning and submit the appropriate documentation to HCD to regain substantial compliance.

Additionally, the City must continue timely and effective implementation of all programs including but not limited to the following:
• Program 1-1: Provision of Adequate Sites
• Program 1-2: Missing Middle Housing Development Standards • Program 1-3: Below Market Rate Housing Ordinance
• Program 1-4: Residential Density Bonus Ordinance
• Program 1-5: Accessory Dwelling Units
• Program 1-6: Small Lot Development
• Program 1-7: Diverse Housing Types
• Program 1-8: Diverse and Healthy Neighborhoods
• Program 1-10: Sites Identified in Prior Planning Periods • Program 2-4: Mobile Home Park Affordability Protections • Program 3-4: Housing for Essential Workers
• Program 3-5 Large and Multi-Generational Households
• Program 3-7: Emergency Shelters and Transitional and Supportive Housing • Program 3-9: Group Homes
• Program 3-10: Housing for Homeless Individuals and Families • Program 4-6: Increased Funding for Affordable Housing • Program 4-7: Affordable Housing Fund Management and Use • Program 4-8: Public Lands
• Program 4-9: Reduce Affordable Housing Development Costs • Program 6-4: Removal of Constraints
• Program 6-5: Priority Water and Sewer Connections for Affordable Housing • Program 6-8: Residential Dwelling Unit Allocation System • Program 6-9: Consistency in Planning Documents
The City must monitor and report on the results of these and other programs through the annual progress report, required pursuant to Government Code section 65400.

Please be aware, Government Code section 65585, subdivision (i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law.
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Leslie Lacko, Director

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Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the Caltrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Land Use and Climate Innovation at:
https://www.lci.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the collaboration from yourself, City staff, and consultants throughout the housing element update and review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law, including providing technical assistance through the rezoning process. If you have any questions or need additional technical assistance, please contact Anthony Errichetto, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
266
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 24, 2026
Matthew Chidester, City Manager
City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Dear Matthew Chidester:

RE: City of Half Moon Bay Failure to Adopt a Compliant 6th Cycle Housing Element – Notice of Violation
The City of Half Moon Bay’s (City) 6th cycle housing element was due on January 31, 2023.1 The City's most recent housing element draft is not in substantial compliance with Housing Element Law.2 While the California Department of Housing and Community Development (HCD) recognizes that the City responded to HCD’s March 1, 2024 Letter of Inquiry with a general timeline for compliance, and appreciates the extensive contact with HCD, the City’s proposed date of October 2026 for completion of its rezones is unsatisfactory. This timeline would delay HCD’s determination of whether the City achieves substantial compliance until the fourth quarter of 2026, more than three years past its statutory due date. Therefore, the City is in violation of Housing Element Law.3
Under Government Code section 65585, subdivision (i)(1)(A), HCD has the authority to review any action or failure to act that it determines to be inconsistent with either an adopted housing element or Government Code section 65583 and to issue written findings of such noncompliance. Additionally, HCD must notify a local government when that local government takes actions that violate Government Code section 65583 and may refer such violations to the California Office of the Attorney General.4 6th Cycle Housing Element Submission and Review History The 6th cycle planning period for the City is January 31, 2023, through January 31, 2031.

The City failed to adopt a compliant housing element by its 6th cycle due date of January 31, 2023. HCD records are as follows:
1 Gov. Code, § 65588, subd. (e)(3).
2 Article 10.6 (commencing with section 65580) of Chapter 3 of the Government Code. 3 Gov. Code, § 65585.
4 Gov. Code, § 65585, subds. (i)(1)(A) and (j).
267
Matthew Chidester, City Manager

Page 2 ends

x On March 17, 2023, HCD issued a Letter of Inquiry to the City noting HCD has not received a draft housing element submittal from the City. x On April 18, 2023, the City responded to HCD’s Letter of Inquiry with a date of May 31, 2023 or soon thereafter to submit its housing element to HCD. x On June 1, 2023, the City submitted an initial draft housing element to HCD for review.
x On August 30, 2023, HCD issued a findings letter to the City noting multiple revisions necessary for the housing element to be compliant with Housing Element Law.
x On March 1, 2024, HCD issued a Letter of Inquiry to the City requesting the City provide a specific timeline for (1) submitting an updated draft housing element and (2) obtaining compliance with Housing Element Law, no later than April 1, 2024.
x March 7, 2024, the City responded to HCD’s Letter of Inquiry with an April or May 2024 date to bring the housing element to the Planning Commission and then to the City Council soon thereafter.
x On September 6, 2024, the City submitted a subsequent draft housing element to HCD for review.
x On November 5, 2024, HCD issued a second findings letter to the City noting multiple revisions were still necessary for the housing element to be compliant with Housing Element Law.
x On March 21, 2025, the City submitted a subsequent draft housing element to HCD for review.
x On May 20, 2025, HCD issued a third findings letter to the City noting multiple revisions were still necessary for the housing element to be compliant with Housing Element Law.
x On September 2, 2025, HCD contacted the City by email requesting an updated timeline for compliance.
x On September 8, 2025, the City provided an updated timeline for the housing element and mitigated negative declaration scheduled for Planning Commission review on October 28, 2025 and a City Council vote on November 18, 2025. x On November 19, 2025, HCD contacted the City by email requesting a status update from the City Council meeting on the housing element. x On November 19, 2025, the City responded by email that the City Council approved the housing element with some changes and therefore it needed to be re-noticed and posted prior to submitting it to HCD.
x On December 1, 2025, HCD contacted the City regarding the status of the City’s housing element.
x On December 5, 2025, the City submitted an element adopted on November 4, 2025 to HCD for review.
x On February 2, 2026, HCD issued a fourth findings letter to the City noting the housing element met the statutory requirements described in HCD’s review, but that the housing element could not be found in substantial compliance until the 268
Matthew Chidester, City Manager

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City completed its required rezones, and both the housing element and rezones were adopted, submitted to, and approved by HCD.
x On February 24, 2026, HCD contacted the City’s consultant by email to obtain an updated timeline for completing the necessary rezones.
x On February 25, 2026, the City’s consultant responded by email that the City is in the process of putting together a timeline.
x On March 9, 2026, the City’s consultant responded by email with an estimate that the zoning amendments and local coastal plan amendments will be completed in October 2026.

Technical Assistance Offered
HCD has made resources and technical assistance available to assist local jurisdictions in creating comprehensive housing elements. Despite extensive technical assistance, including numerous meetings and comprehensive written guidance, numerous findings have remained unaddressed by the City.

In addition, the HCD has made available $123 million in planning grants for regions, cities, and counties to prepare, adopt, and implement plans that streamline housing approvals and accelerate housing production. Under that program, the City was eligible for, and received, an award of $160,000 through SB 2. The City was also eligible for, and received, $65,000 through the Local Early Action Planning Grant (LEAP) for local planning activities.

Consequences of Noncompliance
Consequences apply if the City does not have a housing element in substantial compliance with Housing Element Law. First, noncompliance results in ineligibility or delay in receiving state funds that require a compliant housing element as a condition precedent, including, but not limited to, the following:
x Permanent Local Housing Allocation Program
x Local Housing Trust Fund Program
x Infill Infrastructure Grant Program
x Senate Bill 1 Caltrans Sustainable Communities Grants x Affordable Housing and Sustainable Communities Program Second, under the Housing Accountability Act, jurisdictions that do not have a substantially compliant housing element are subject to the Builder’s Remedy.5

5 Gov. Code, § 65589.5, subds. (d)(6), (f)(6), and (h)(11). 269
Matthew Chidester, City Manager

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In addition, HCD may notify the California Office of the Attorney General.6 Furthermore, state law provides for court-imposed penalties for persistent noncompliance, including enhanced financial penalties. Government Code section 65585, subdivision (l)(1), establishes a minimum fine of $10,000 per month, up to $100,000 per month for jurisdictions that fail to comply with a court order to bring its housing element into compliance. If a jurisdiction remains noncompliant, a court may multiply those penalties by a factor of three and then six, depending on the duration of the continued noncompliance.7 If a jurisdiction fails to comply after six months from the imposition of fees, the court may also appoint a receiver.8
Finally, in any action brought by the Attorney General or HCD to enforce the adoption of housing element revisions, jurisdictions are subject to additional fines of between $10,000 and $50,000 per month for each violation, accrued from the date of the violation until the date the violation is cured, including investigation costs, expert fees, attorneys’ fees, costs, and any other relief the court deems appropriate.9 Findings and Conclusion
HCD finds that the City has failed to adopt a substantially compliant housing element and is therefore in violation of state law. Pursuant to Government Code section 65585, subdivision (i)(1)(A), the City has until April 23, 2026, to provide a written response to this notice before HCD takes any of the actions authorized by section 65585, including, but not limited to, referral to the California Office of the Attorney General.

In addition, pursuant to Government Code section 65585, subdivision (k), HCD hereby offers the City two meetings within the next 30 days to discuss the City’s violations and its failure to adopt a substantially compliant housing element.

State housing laws are effective only with the cooperation of local governments. HCD understands that local governments may encounter staffing and resource constraints in their efforts to gain compliance. However, housing elements, and the timely implementation thereof, are essential to developing a blueprint for growth and are a vital tool to address California’s prolonged housing crisis. To meet the 6th cycle update requirements for a substantially compliant housing element, the City must complete its rezones, adopt the housing element and rezones, and submit a copy of the adopted housing element and rezone documentation to HCD for review and certification before it can be considered compliant10
6 Gov. Code, § 65585, subd. (j).
7 Gov. Code, § 65585, subds. (l)(2) and (3).
8 Gov. Code, § 65585, subd. (l)(3)(B).
9 Gov. Code, § 65009.1, subd. (a).
10 Gov. Code, § 65585, subds. (b)-(h).
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Matthew Chidester, City Manager

Page 5 ends

If you have any questions or would like to discuss the contents of this letter, please contact Leslie Woodman at [email protected].

Sincerely,
Melinda Coy
Housing Accountability Unit Chief
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ATTACHMENT 6
Public Comments
City Council – August 18, 2026
Public Comments from August 7th thru August 13th
• Masara 08/07
• Haynes Boone 8/12
Planning Commission – August 5, 2026
Public Comments from July 31 thru August 5th
• Haynes Boone 07/31
• Joanes 08/04
• Lippert 08/03
• de Souza 08/03
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I Support the Church
From: mark massara [email protected]
To: Bridget Jett
Fri 8/7/2026 10:04 AM
Dear City,
Please add me to the list of those who oppose the Cycle 6 Housing Element / LCP Implementation Plan and Revised Zoning Map.

Among other things I support the Church and don’t appreciate the City attempting to use Church property to provide housing. That is a sham designed to fake compliance with housing laws with everyone knowing full well the housing will never be realized.

Instead, the City should be analyzing and including real housing opportunities, and the many open undeveloped areas throughout the City that are excellent areas for future development, including increasing density in the partially developed Pacific Ridge project, the Podesta fields, Beachwood, and the Surf Beach and Dunes tracts.

The continued legacy of numerous ill conceived PUDs throughout the City is the primary reason the City is in violation of state housing laws, not a lack of available space. In other words, the continued non-compliance is willful and deliberate. Using fake development goals like Church properties is shameful, and should be stricken asap. The only way to positively impact the housing crises is to actually build more housing, not simply talk about it or carry on like building a few units downtown is going to make a difference.

Thank you,
Mark Massara
[email protected]
65 Ventura St.

HMB CA
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283

HAZEL JOANES
August 4, 2026
Chair David Gorn and Members of the
Half Moon Bay Planning Commission
501 Main Street
Half Moon Bay, CA 94019
Re: Municipal Code Amendments to Implement the Sixth Cycle Housing Element—PDP26-047 Dear Chair Gorn and Planning Commissioners:

I support responsible planning for housing and recognize the City’s obligation to comply with State Housing Element Law. I also recognize that Half Moon Bay faces a uniquely complex planning environment because the entire City lies within the Coastal Zone. Its housing obligations must therefore be coordinated with the certified Local Coastal Program, Coastal Act requirements, infrastructure limitations, environmental protections, and established community priorities.

Before recommending the proposed ordinance, I respectfully ask the Planning Commission to require staff to reconcile several inconsistencies among the staff report, the Housing Element, the proposed ordinance, the certified Local Coastal Land Use Plan, and HCD’s correspondence.

These inconsistencies raise legitimate questions about how the necessary Implementation Plan amendments were prioritized, managed, and communicated to the Planning Commission, City Council, affected property owners, and public.

Relationship between the LUP, Implementation Plan, and
Housing Element
The staff report explains that the LUP was adopted in 2020 and certified by the Coastal Commission in April 2021. Appendix A identified zoning and Implementation Plan amendments necessary to bring the Municipal Code into conformity with the updated LUP.

The Housing Plan acknowledged that programs requiring amendments to the Municipal Code, Zoning Ordinance, or Local Coastal Program would require Planning Commission review, City Council adoption, and Coastal Commission certification. It also stated that the City had proactively prepared for future land-use changes and anticipated preparing and submitting the necessary amendments.

Nevertheless, the Sixth Cycle Housing Element was adopted in November 2025 before the amendments now described as essential to substantial compliance were completed. HCD subsequently advised the City that, although the adopted Housing Element met the statutory 284

HAZEL JOANES
requirements addressed in HCD’s review, it could not be found in substantial compliance until the required rezonings were completed, adopted, submitted, and approved.

This sequence raises a reasonable question:

Why was the Housing Element presented to the Planning Commission, City Council, and HCD for approval before the zoning and Implementation Plan amendments necessary for compliance were completed or advanced concurrently?
The documents do not establish that anyone intentionally provided inaccurate information. They do, however, reveal a disconnect between the certified LUP, the outstanding Implementation Plan amendments, the commitments contained in the Housing Element, and the implementation schedule communicated to HCD and the City Council.

The information presented to the Council may not have been sufficiently clear about the importance of the outstanding amendments, their effect on certification, the reduction in local discretion associated with certain programs, and the consequences of delay. The Commission should ask when City staff and administration first understood that completion of the rezonings was a condition of substantial compliance, when the City Manager and Council were advised of that fact, and why the amendments were not scheduled earlier.

Responsibility to keep the Council fully informed
Responsibility for coordinating the LUP and Housing Element does not rest solely with the Planning Department. It involves the City’s longstanding planning staff, senior administration, City Manager, legal counsel, consultants, and ultimately the City Council.

The Council should have been kept fully informed about all significant aspects of the relationship among the LUP, Implementation Plan, and Housing Element, including:
x Which LUP provisions had not yet been implemented through zoning; x Which Housing Element commitments required new legislation; x Which provisions would result in ministerial rather than discretionary review; x Which public-hearing and appeal opportunities could be removed; x Which amendments required Coastal Commission certification; x How delay could affect Housing Element compliance; and x The potential financial, legal, and land-use consequences of noncompliance.

Given the City’s longstanding institutional knowledge, the Commission should determine whether the significance and urgency of these matters were adequately recognized, prioritized, and communicated to the Council. This is not simply an effort to assign fault. It is necessary to determine whether the City had an effective administrative process for tracking legally 285

HAZEL JOANES
significant commitments and ensuring that elected officials understood their practical consequences before acting.

Ministerial and by-right approval should have been more clearly explained
Housing Element Program 1-10 states that specified reuse sites must allow “by-right processing,” described as “ministerial review,” for projects in which at least 20 percent of the units are affordable to lower-income households.

The proposed Chapter 18.44 explains the practical consequences more fully. Qualifying projects would be reviewed by the Community Development Director, would not require a public hearing, would be evaluated under objective standards, and an approval generally could not be appealed. The proposed amendment to Chapter 18.20 would also remove the public-hearing requirement for an associated coastal development permit.

Although this reduction in local discretionary review may be required by State law rather than being a policy choice made by City staff, the Planning Commission and City Council should have received a clear explanation of those consequences when the Housing Element was considered.

The phrase “by-right processing” alone may not have fully communicated that:
x The Planning Commission would not decide the project; x A public hearing would not be required;
x Review would be limited to objective standards;
x An approval generally could not be appealed; and
x The Community Development Director would make the ministerial determination.

The current staff report does not demonstrate whether these practical consequences were plainly presented during the earlier Housing Element review. The Commission should request the materials used to explain Program 1-10 and determine whether the implications of ministerial review were fully disclosed.

The Commission should also distinguish between the housing locations and densities contemplated by the certified LUP and the ministerial procedures subsequently required through the Housing Element and State law. The LUP supports affordable housing, increased density in specified areas, and a Workforce Housing Overlay. It is less clear whether the LUP itself contemplated approvals without a public hearing, appeal, or Planning Commission decision.

This distinction does not eliminate the City’s obligation to follow State law. It does underscore the obligation to keep the Planning Commission, Council, affected property owners, and public 286

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fully informed about which provisions reflect locally adopted LUP policy and which arise from later State requirements.

HCD’s statutory leverage and Half Moon Bay’s local
perspective
HCD is now directing the steps the City must take to obtain a finding of substantial compliance.

The proposed ordinance is being advanced not simply because the City independently selected this process, but because HCD has determined that the required rezonings and by-right provisions must be completed and approved before the Housing Element can be certified.

HCD may be exercising authority granted by State law. Nevertheless, the practical effect places significant pressure on the City. HCD has advised that continued noncompliance may affect grant eligibility, expose the City to the builder’s remedy, result in Attorney General enforcement, and lead to substantial judicial penalties.

This creates a difficult dynamic: the City must enact significant local zoning and procedural changes before HCD will recognize the Housing Element as compliant. To the State, this may be enforcement of statutory commitments. To residents, however, it may appear that the City has little practical choice but to adopt the required legislation in order to retain funding eligibility, reduce legal exposure, and preserve some measure of local control.

That perception does not establish wrongdoing by HCD, but it does require transparency. When a state agency conditions compliance status on specific local legislative action, the City should clearly explain:
x Which requirements are expressly imposed by State law; x Which requirements reflect HCD’s interpretation of the law; x Which commitments the City itself included in the Housing Element; x What local alternatives were considered;
x What discretion remains available to the City; and
x How Half Moon Bay’s certified coastal-planning framework was presented to HCD.

HCD administers a statewide housing program. Its review appropriately focuses on housing capacity, statutory deadlines, removal of governmental constraints, and implementation. That statewide mandate does not, by itself, provide the detailed local perspective necessary to understand Half Moon Bay’s land-use history, Coastal Act obligations, infrastructure constraints, community priorities, and prior public discussions.

For that reason, the City administration, City Manager, planning staff, consultants, and legal counsel have a heightened responsibility to communicate in both directions. They must accurately explain State requirements to the Council and public, while also clearly and forcefully presenting Half Moon Bay’s local circumstances to HCD.
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Compliance should not mean adopting the State-required process without fully examining and explaining its local consequences. Nor should local concerns be used to avoid lawful State obligations. A balanced process requires compliance while preserving every lawful opportunity for coastal-resource protection, local planning, public understanding, and transparent decisionmaking.

The staff report’s explanation requires clarification
The staff report states that the LUP is the City’s governing land-use document, supersedes inconsistent Municipal Code provisions, and has already been applied by staff during project review. At the same time, it acknowledges that Appendix A identifies formal amendments needed to bring the Implementation Plan into conformity with the LUP and that HCD will not find the Housing Element substantially compliant until the required rezonings are formally adopted and approved.

Applying LUP policies during individual project review is not the same as:
x Adopting zoning legislation;
x Amending the certified Implementation Plan;
x Establishing ministerial procedures;
x Eliminating hearings or appeals; or
x Obtaining Coastal Commission certification.

If the formal amendments were essential, it would have been appropriate to prioritize them after the LUP was certified in 2021 and certainly while the Housing Element was being prepared.

The report should acknowledge both the State’s compliance schedule and the City’s responsibility for managing the implementation work, informing the Planning Commission, and keeping the City Council fully informed of all material aspects of the LUP and Housing Element.

The ordinance appears to implement only selected
requirements
Housing Element Program 1-1 identifies several actions:
x Town Center rezonings from R-2 to R-3;
x Workforce Housing Overlay provisions for Public Services, Rural Coastal, and agricultural properties;
x Expansion of the Mobile Home Park zoning district for Hilltop Mobile Home Park; and x Mixed-use allowances in the Industrial zoning district. 288

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The present ordinance primarily addresses the Poplar and Main Street R-3 rezonings, four Public Services overlay sites, and by-right processing requirements. The staff report states that other Program 1-1 components have already been completed, but it does not clearly identify when those actions occurred, which ordinances implemented them, or whether they received Coastal Commission certification.

Appendix A is also broader than the amendments before the Commission. The report should state clearly that this ordinance implements selected housing-related portions of Appendix A, together with separate Housing Element and State-law requirements, rather than suggesting that it comprehensively implements Appendix A.

An implementation matrix comparing Appendix A, Housing Element Programs 1-1 and 1-10, prior ordinances, the present amendments, and outstanding work would allow the Commission and Council to understand what has been completed and what remains.

Parcel and site descriptions should be reconciled
The ordinance and staff report appear to assign two different assessor’s parcel numbers to 830 Stone Pine Road:
x Chapter 18.43 identifies APN 056-590-010; and
x Chapter 18.44 and the staff report identify APN 056-260-180.

The correct parcel must be confirmed before the ordinance advances.

The LUP policy cited in the ordinance refers to up to 40 units at the “515 Kelly Avenue Catholic Church,” while the proposed ordinance applies an overlay density of 45 dwelling units per acre to the “300 Block Church Street,” APN 056-150-020. The staff report should explain whether these descriptions identify the same property, separate portions of the property, or a materially different application of the LUP policy.

These distinctions are especially important when the affected property would also be subject to ministerial review.

CEQA citation and chronology
The staff report refers to CEQA Guidelines section 15162, while the ordinance refers to section 13162. This appears to be a drafting error and should be corrected following confirmation by the City Attorney.

The staff report also refers to an HCD “letter of inquiry on March 1” without identifying the year. HCD’s Notice of Violation identifies the relevant inquiry as dated March 1, 2024. The documents do not consistently identify all meetings and communications with HCD. 289

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A complete chronology should identify:
x When HCD first advised the City of the required rezonings; x When the ministerial consequences of Program 1-10 were identified; x What schedules the City provided to HCD;
x When the City Manager, Planning Commission, and Council were informed; x Why an October 2026 completion date was initially proposed; and x Why the amendments were accelerated after the Notice of Violation and State lawsuit.

Institutional accountability
The City is now defending litigation brought by the State and is acting under substantial pressure to complete work relating to an LUP certified in 2021 and a Housing Element process that continued for several years.

The circumstances may reflect several contributing factors, including changing State requirements, the complexity of Coastal Commission review, limited staffing and resources, consultant advice, and competing municipal priorities. Rather than presuming improper intent or focusing responsibility on one individual, the Commission should examine whether the longstanding institutional processes involving planning staff, senior City administration, the City Manager, consultants, and legal counsel were adequate to identify, prioritize, communicate, and complete the required work.

If critical Implementation Plan amendments were deferred, if the ministerial consequences of Program 1-10 were not fully explained, or if the Council was not clearly advised of the compliance risks, the City should identify what occurred and establish safeguards to prevent a similar situation in the future.

Requested action
Before recommending the ordinance, I respectfully ask the Planning Commission to request that staff:

1. Correct the Stone Pine Road APN and the CEQA citation;

2. Reconcile the references to 515 Kelly Avenue and the 300 Block of Church Street;

3. Provide an implementation matrix comparing Appendix A, Housing Element Programs 1-1 and 1-10, prior ordinances, and the amendments now proposed;

4. Identify which amendments have been adopted and certified and which remain outstanding;

5. Explain whether the LUP specifically contemplated ministerial approval without hearings or appeals, or whether those procedures arise through the Housing Element and State law;

6. Provide the materials used to explain Program 1-10 and its practical effects to the Planning Commission during the Housing Element process; 290

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7. Provide a complete chronology of communications and meetings with HCD and the Coastal Commission;

8. Explain why the Housing Element was adopted before its essential Implementation Plan amendments were completed or advanced concurrently;

9. Identify when the City Manager and Council were advised that the outstanding rezonings prevented a finding of substantial compliance;

10. Clarify that Coastal Commission staff’s authorization to proceed is not formal Coastal Commission certification;

11. Explain what steps the City took to communicate its coastal, infrastructure, propertyowner, and community concerns to HCD; and

12. Explain what administrative measures will ensure that the Planning Commission and Council are fully informed of future LUP, Housing Element, and Implementation Plan commitments.

Conclusion
The proposed amendments appear substantially consistent with the core rezoning and by-right requirements identified by HCD, the Housing Element, and selected provisions of the LUP.

However, the materials before the Commission have not been fully reconciled.

They contain inconsistent parcel information, a conflicting legal citation, an incomplete chronology, unexplained differences in property descriptions, uncertainty about which portions of Program 1-1 and Appendix A have been implemented, and unanswered questions about whether the full consequences of ministerial by-right approval were disclosed during the Housing Element process.

Most importantly, the record does not adequately explain why a Housing Element dependent upon zoning and Implementation Plan amendments was adopted before those measures were completed, whether the LUP contemplated the specific ministerial procedures now proposed, or whether the Planning Commission and City Council were fully informed of the consequences of that sequencing.

HCD is now using the statutory authority available to it to direct the City’s path toward compliance. The City must respond responsibly, but it should do so with a complete understanding of the local consequences and with a clear record showing that Half Moon Bay’s coastal constraints, infrastructure limitations, community priorities, and established planning framework have been fully communicated and considered.

Because the unresolved omissions and inconsistencies have contributed to uncertainty and placed the City in a precarious position with the State, the Planning Commission should require the record to be corrected and supplemented before forwarding its recommendation. Housing compliance is important, but so are accuracy, transparency, sound administration, meaningful 291

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public understanding, and the Council’s ability to make consequential land-use decisions based on complete information.

Respectfully submitted,
Hazel Joanes
Half Moon Bay Resident/ Former Planning Commissioner
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Public Comment
Planning Commission Meeting 08/05/2026
Housing Rezoning (15 sites)
Mon 8/3/2026 8:57 PM
FROM: Paul Lippert
TO: Rick Hernandez <[email protected]>; David Gorn <[email protected]>; Steve Ruddock <[email protected]>; Christopher DelNagro <[email protected]; Jacob Rems <[email protected]>; Steve Ruddock <[email protected]>; David Gorn <[email protected]>; Leslie Lacko <[email protected]>; Matthew Chidester <[email protected]>; Bridget Jett <[email protected]>; [email protected] Honorable HMB Planning Commissioners,
My name is Paul Lippert and my wife Sam and I own and reside at 604 Poplar St., HMB. On July 24, 2026 we received a notice of a public hearing at a Special Meeting of the Planning Commission scheduled for August 5, 2026, during which the Planning Commission will consider whether to recommend to the City Council Zoning Code amendments to rezone 15 parcels listed in the Notice to implement the Local Coastal Land Use Plan's Workforce Housing Overlay.

My wife and I own three of the parcels listed for consideration of the proposed rezoning and this was never discussed with us by City Staff. 604 Poplar is the only occupied residential property on the list and we would like to know by what criteria and what process was it included and what outreach was done by City Staff prior to its inclusion? Its inclusion on the list seems arbitrary and capricious. This process was clearly not transparent. Has the City had any discussions or communications regarding the parcels we own? We do not want our parcels included in this proposed rezoning.

The notification of the Special Meeting was received by us less than 14 days prior to the meeting and the Final Staff Report and supporting materials were received only 3 business days prior to the meeting. Sam and I had long standing out of town plans before receiving the notification of the Special Meeting and are unable to attend. We would also like responses from City Staff to the questions posed above and to be given an opportunity to address their responses. Therefore, we respectfully request that this item be continued to a future regularly scheduled Planning Commission Meeting and that parcels 064-272-010, 064-272-020 and 064-272-030 be removed from the City's list for proposed rezoning.

Thank you very much.

Paul and Sam Lippert
293
Public Comment
Planning Commission Meeting 08/05/2026
Housing Re-zoning (15 Parcels)
From: Evelyn deSouza <[email protected]>
Sent: Monday, August 3, 2026 12:48 PM
To: David Gorn <[email protected]>; Rick Hernandez <[email protected]>; Christopher DelNagro <[email protected]>; Jacob Rems <[email protected]>; [email protected]
Cc: Leslie Lacko <[email protected]>; Matthew Chidester <[email protected]>; Bazzano, Denise S. <[email protected]> Subject: Re: Public Comment, Item 4.A, August 5 Hearing, 900 Main Street Zoning Map Inconsistency
Dear Chair Gorn and Commissioners:

I am writing to flag an apparent internal inconsistency between the City's 2020 certified Local Coastal Land Use Plan (LUP) and the Zoning Map Amendment proposed in Attachment 2 to Wednesday's staff report. This seems worth resolving before this ordinance goes forward, given that both HCD's compliance review and the pending litigation turn on whether the City has fully implemented its own adopted LUP.

I'd note that the staff report itself states that the LUP is the City's governing land use document and takes precedence over the Municipal Code/Implementation Plan irrespective of whether the corresponding zoning amendments have been completed, and that, on this basis, staff has already been applying many of the LUP's designations in project review ahead of this ordinance's formal adoption. If that principle is accurate, it raises the question of what designation currently governs 900 and 926 Main Street in practice, and whether this ordinance is the appropriate opportunity to align the Municipal Code with it.

The inconsistency: Appendix A of the certified 2020 LUP, an adopted part of the Land Use Plan, includes Table A-1, which contains a single entry grouping 900, 926, and 940 Main Street, together with both sides of Poplar Street between Highway 1 and Main Street, as one site. That entry assigns the entire group the same designation change: from Residential, Medium Density to Residential, High Density, anticipated zoning R-3. This has been the adopted, certified designation since the Coastal Commission's certification in April 2021.

Notably, the ordinance before the Commission does execute this same designation for every Poplar Street parcel named in that row. Nine parcels across the 500 and 600 blocks of Poplar Street are each rezoned from R-2 to R-3 in Attachment 2. 900 and 926 Main Street are the only parcels from this single LUP table row that remain unimplemented. 294
Public Comment
Planning Commission Meeting 08/05/2026
Housing Re-zoning (15 Parcels)
My question for the Commission: Since the Commission has demonstrably implemented this designation for the rest of the row, I'd ask that it determine whether 900 and 926 Main Street should be included in this rezoning as well, consistent with the rest of the entry and with the LUP's stated precedence over the Municipal Code, or, if there is a substantive reason they were excluded, that the record reflect that reasoning. Given that this designation was adopted in 2020, the Commission's own records or institutional memory may help clarify whether the omission of these two parcels was ever a deliberate decision.

If not, the comparison above should stand on its own.

I'd also encourage the Commission to confirm, as part of this process, that there are no other unimplemented items remaining in Table A-1. 900 and 926 Main Street may simply be the most visible example, and it would be worth knowing before this ordinance is forwarded to HCD and the Coastal Commission for certification.

For transparency: I am the owner of 900 Main Street, one of the two properties omitted from this table's implementation. My request is that the City's adopted documents be applied consistently, whichever way the Commission resolves this, for these two parcels as for the rest of the entry.

For context: I raised this directly with Director Lacko on August 1, and she was responsive and proactive in offering to look into it. Given the volume of work her department is managing on this ordinance, and that Wednesday's hearing falls before I expected her to have an answer, I let her know I would also submit this comment so the Commission has the option to address it this week if it wishes. I remain hopeful this can be resolved through her review, and would welcome the opportunity to withdraw or amend this comment if that happens before the hearing.

Respectfully,
Evelyn de Souza
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1 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

ROB BONTA
Attorney General of California

DAVID PAI
Supervising Deputy Attorney General
JOHN M. NATALIZIO, SBN 311482
JOSEPH ISENSTADT, SBN 330312
Deputy Attorneys General
1300 I Street, Suite 125
Sacramento, CA 95814
Telephone: (916) 210-6382
E-mail: [email protected]
Attorneys for Petitioners and Plaintiffs People
of California ex rel. Rob Bonta, and the California
Department of Housing and Community Development

EXEMPT FROM FILING FEES
PER GOV. CODE § 6103

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF SAN MATEO

PEOPLE OF THE STATE OF
CALIFORNIA, EX REL. ROB BONTA;

CALIFORNIA DEPARTMENT OF

HOUSING AND COMMUNITY

DEVELOPMENT,
Petitioners and Plaintiffs,
v.

CITY OF HALF MOON BAY,
Respondent and Defendant.

Case No.

PETITION FOR WRIT OF MANDATE

AND COMPLAINT FOR

DECLARATORY AND INJUNCTIVE
RELIEF
(Code of Civ. Proc., §§ 1085, 1060; Gov.

Code § 65589.5)
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2 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

INTRODUCTION

1. Californians continue to suffer under a housing affordability crisis. As the Legislature has found, “[t]he lack of housing . . . is a critical problem that threatens the economic, environmental, and social quality of life in California.” (Gov. Code, § 65589.5, subd. (a)(1)(A).) 1 This crisis is “hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives.” (Id. subd. (a)(2)(A).)

2. A key contributor to this crisis is the failure of local governments to plan for the necessary housing supply. To remedy this, the Legislature requires local governments to include housing elements in their general plans. A housing element must include, among other things, an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. (§§ 65580-65589.11.)

3. Petitioners and Plaintiffs, PEOPLE OF THE STATE OF CALIFORNIA, acting by and through ROB BONTA, Attorney General of the State of California, and the CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (collectively, the “State”) bring this action against and Respondent and Defendant CITY OF HALF MOON BAY (“City” or “Half Moon Bay”) to remedy the City’s violation of state law. The State requests that this Court issue a writ ordering the City to bring its housing element into compliance with state law, issue a declaration that the City has failed to fulfill its planning obligations, and impose all fines, penalties, and other relief required by law and that the Court may deem appropriate.

PARTIES

4. The Attorney General, as the chief law officer of the State of California, brings this action, on behalf of the People of the State of California, under his broad independent power to enforce state housing law. (Cal. Const., art. V, § 13; § 65585, subd. (j).) 1 Unless specified otherwise, all further statutory references are to the Government Code. 297
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3 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

5. The California Department of Housing and Community Development (“HCD”) is a public agency of the State of California. (§ 12804, subd. (b).) Among other duties, HCD is responsible for developing housing policy and building codes, for regulating manufactured homes and mobile home parks, and for enforcing state housing laws, including the Housing Element Law (§§ 65580-65589.11.). The People of the State of California and HCD are collectively referred to as the “State.”

6. Half Moon Bay is a political subdivision of the State of California. The City is a local governmental agency charged with regulating and controlling land use and development within the City’s boundaries, including but not limited to complying with all applicable provisions of state law, such as the Housing Element Law.

VENUE AND JURISDICTION

7. Venue is proper in this Court because the City is located in San Mateo County and the violations of law alleged herein occurred in San Mateo County. (See Code Civ. Proc., § 394.)

8. This Court has jurisdiction over this action pursuant to Code of Civil Procedure sections 187, 1060, and 1085.

LEGAL BACKGROUND

9. The Legislature has declared that “[t]he availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian . . . is a priority of the highest order.” (§ 65580, subd. (a).) California law requires that all local governments adequately plan to meet the housing needs of everyone in the community, at all economic levels. (Id. subd. (b).)

10. To meet this requirement, every city and county must adopt and periodically update a housing element as part of its general plan. (See §§ 65302, subd. (c); §§ 65580-65589.11.) The law mandating this adoption and periodic update is known as the “Housing Element Law.” (§§ 65580-65589.11.) The Housing Element Law requires local governments to adopt plans and regulatory systems that provide opportunities for, and do not unduly constrain, housing development, especially for a locality’s lower-income households and workforce. As a result, 298
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4 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF housing policy in California rests largely on the effective implementation of the housing element contained in the local general plan.

11. The housing element is a roadmap for housing development in a given community.

The housing element must identify and analyze existing and projected housing needs, and must include “a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing.” (§ 65583.) The housing element must also “identify adequate sites for housing” and “make adequate provision for the existing and projected needs of all economic segments of the community.” (Ibid.) Each housing element is also subject to review by HCD, as discussed below.

12. A local jurisdiction’s housing element must be frequently updated to ensure compliance with the Housing Element Law. (§ 65588, subds. (b), (e).) Each eight-year update cycle is known as a “planning period.” (Id., subd. (f)(1).)

13. The process of updating a housing element begins with HCD’s determination of a Regional Housing Need Allocation (“RHNA”) for the region for a given planning period. (See § 65584, subd. (a)(1).) The RHNA sets goals for housing affordable to various income levels. To arrive at the RHNA, HCD starts with demographic population information from the California Department of Finance and uses a formula to calculate a figure for each region’s planning body, known as a “council of governments” (“COG”). Each COG (in this case, the Association of Bay Area Governments) also uses its own demographic figures to calculate the regional housing need.

Each COG coordinates with HCD to arrive at a final figure, taking into account factors not captured in the calculations. This final figure is the RHNA. (See § 65584.01.)

14. Once the RHNA is set, the COG is responsible for allocating the housing need among all of the cities and counties within that region. (§ 65584, subd. (b).) Each local government must then prepare a housing element that identifies adequate sites to accommodate that jurisdiction’s fair share of the RHNA at each income level. (§§ 65583, 65583.2.) Sites must be suitable for residential development and must be made available during the planning period. (§ 65583.2, subd. (a).) If a sufficient quantity of adequate sites is not currently available, the housing element must commit to identifying and rezoning additional sites within three years from the date of adoption. 299
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5 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF (§§ 65583, subd. (c)(1), 65583.2, subd. (h).) The housing element must also accommodate any unmet portion of the RHNA from the prior planning period. (§ 65584.09, subd. (a).)

15. Each housing element must also evaluate governmental constraints on the development of housing for all income levels, and must show local efforts to remove governmental constraints that impede the local government’s ability to meet its share of the RHNA. (§ 65583, subd. (a)(5).)

16. Each local government must submit a draft housing element to HCD before adoption. (§ 65585, subd. (b)(1).) HCD must review the draft element and issue findings as to whether the draft substantially complies with the Housing Element Law. (Id., subds. (b)(1)(C), (d).) After adopting the final housing element, the local government must again submit the element to HCD, and HCD must again review and report its findings to the local government. (Id., subds. (g), (h).)

17. Under Statutes of 2017, Chapter 370 (“AB 72”), codified at Government Code section 65585, subdivisions (i) and (j), HCD has authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or Section 65583 of the Housing Element Law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law. (§ 65585, subd. (i)(1)(C).)

18. AB 72 also authorizes HCD to notify the Office of the Attorney General of California that the local jurisdiction is in violation of state law for noncompliance with, among other statutes, the Housing Element Law. (§ 65585, subd. (j).)

19. Pursuant to section 65585, subdivision (i)(1)(A), HCD may take any of the actions authorized by AB 72 after issuing written findings to the local government “as to whether the action or failure to act substantially complies with [Housing Element Law],” and providing a reasonable time, no longer than 30 days, for the local government to respond. (§ 65585, subd. (i)(1)(A).) Prior to an enforcement action brought by the Attorney General’s Office, HCD must also offer the local government the opportunity for two in-person or telephone meetings to discuss the violation, and provide the City with written findings regarding the violation. (§ 65585, subd. (k).)
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6 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

FACTUAL ALLEGATIONS

20. The City is currently in the middle of 2023-2031 Planning Period (also known as the Sixth Cycle).

21. The City’s deadline to adopt a compliant Sixth Cycle housing element was January 31, 2023. The City failed to adopt a compliant housing element by its Sixth Cycle housing element due date.

22. The City did not submit a first draft of its housing element to HCD until May 30, 2023, several months after the City’s deadline to adopt a housing element in substantial compliance with the Housing Element Law.

23. On August 30, 2023, HCD issued a findings letter to the City noting multiple revisions necessary for the housing element to be compliant with the Housing Element Law.

24. Then, on March 1, 2024, HCD issued a letter of inquiry to the City requesting the City provide a specific timeline for submitting an updated draft housing element and obtaining compliance with the Housing Element Law. HCD provided the City a deadline of April 1, 2024.

25. After responding to HCD, the City ultimately submitted a subsequent draft housing element to HCD for review on September 5, 2024.

26. On November 5, 2024, HCD issued a second findings letter to the City noting multiple revisions were still necessary for the housing element to be compliant with the Housing Element Law.

27. On March 21, 2025, the City submitted a subsequent draft housing element to HCD for review.

28. On May 20, 2025, HCD issued a third findings letter to the City noting multiple revisions were still necessary for the housing element to be compliant with the Housing Element Law.

29. HCD and the City corresponded regarding the updated timeline for submission of a subsequent draft of the housing element. Ultimately, on December 8, 2025, the City submitted a housing element adopted on November 4, 2025 for HCD to review. 301
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7 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

30. On February 2, 2026, HCD issued a fourth findings letter to the City noting the housing element met the statutory requirements described in HCD’s review, but that the housing element could not be found in substantial compliance until the City completed its required rezones, and both the housing element and rezones were adopted, submitted to, and approved by HCD.

31. HCD and the City corresponded regarding the rezoning timeline. On March 9, 2026, a consultant for the City stated that the rezoning and a local coastal plan amendment will be completed by October 2026.

32. Prior to bringing this action, HCD issued a notice of violation on March 24, 2026, and offered the opportunity for two meetings to discuss the violations that are the subject of this action, pursuant to section 65585, subdivision (k).2 After issuing the NOV, HCD met with the City to discuss the City’s housing element on April 7 and 10, May 19, and June 10, 2026.

FIRST CAUSE OF ACTION
Writ of Mandate
(Code of Civ. Proc. §§ 1085, 65585, 65588, 65751, 65754) [Against All Defendants]

33. The State incorporates by reference each and every allegation of the preceding paragraphs as though fully set forth herein.

34. Under California’s Housing Element Law, the City must ensure that its general plan contains a legally compliant housing element.

35. The City’s Sixth Cycle Housing Element was due January 31, 2023. (See Gov. Code, § 65588, subd. (e).)

36. The City has failed to carry out its duty. The City has not completed the required rezoning actions. Additionally, HCD has not found the City’s housing element in substantial compliance with the Housing Element Law.
2 The notice of violation can be found at:
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/HAU/half-moon-bay- he-noncompliant-nov-032426.pdf. This notice of violation is incorporated herein by reference. 302
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8 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

37. The City’s failure to act is arbitrary, capricious, entirely lacking in evidentiary support, contrary to established public policy, unlawful, procedurally unfair, an abuse of discretion, and a failure to act as required by law.

38. Accordingly, a writ of mandate should be issued ordering the City to complete necessary rezoning within 120 days and to ensure, inter alia, that the City’s Sixth Cycle housing element meets the City’s RHNA goals, as determined by HCD.

39. The State has a beneficial interest in the issuance of such a writ, given their authority and mandate to enforce substantial compliance with Housing Element Law.

40. The State has exhausted all required administrative remedies or is excused from exhausting its remedies due to the futility of pursuing such remedies, among other things.

41. The State has no plain, speedy, or adequate remedy in the ordinary course of law. The only remedy provided by law for the State to obtain relief is this Petition for Writ of Mandate pursuant to Code of Civil Procedure section 1085.

SECOND CAUSE OF ACTION
Declaratory Relief
(Code of Civ. Proc. § 1060)
[Against All Defendants]

42. The State incorporates by reference each and every allegation of the preceding paragraphs as though fully set forth herein.

43. There is an actual, present controversy between the State and the City as to whether the City has complied with the Housing Element Law. The City is aware that it is not substantially compliant with the Housing Element Law, even though its Sixth Cycle housing element is now years overdue.

44. It is necessary and appropriate for the Court to render a declaratory judgment that sets forth the parties’ legal rights and obligations with respect to whether the City is substantially compliant with the Housing Element Law. Among other things, such a judgment would inform the parties’ conduct in connection with future contemplated amendments to the City’s housing element, including those that occur routinely at the beginning of each housing cycle. 303
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9 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF

45. The State therefore requests a declaration that the City is not substantially compliant with the Housing Element Law.

PRAYER FOR RELIEF
WHEREFORE, the State requests the Court enter judgment in favor of the State and against the City and prays as follows:

1. For a writ of mandate ordering the City to adopt and submit to HCD a housing element, which substantially complies with the Housing Element Law, including meeting the City’s RHNA obligations for the planning period, together with proof that it has completed the required rezoning, within 120 days. (Code of Civ. Proc. § 1085; Gov. Code §§ 65585, 65751, 65754.)

2. For a declaration that the City has not substantially complied with the Housing Element Law. (Code of Civ. Proc. § 1060.)

3. For penalties, costs of investigating and prosecuting this action, and all other relief the Court deems appropriate pursuant to Government Code section 65009.1.

4. For temporary relief, including but not limited to the suspension of the City’s nonresidential permitting authority, and mandating the approval of certain residential developments. (Gov. Code §§ 65755, 65757.)

5. For statutory fines, levies and penalties.

6. For costs and reasonable attorneys’ fees.

7. For any other relief the Court may deem appropriate. 304
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10 PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF Dated: July 16, 2026 Respectfully submitted,

ROB BONTA
Attorney General of California

DAVID PAI
Supervising Deputy Attorney General
_______________________________

JOSEPH ISENSTADT
Deputy Attorney General
Attorneys for Petitioners and Plaintiffs
People of California ex rel. Rob Bonta,
and the California Department of Housing
and Community Development
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Maggie Rodriguez, City Clerk
TITLE: TWO YOUTH APPOINTMENTS TO PARKS AND RECREATION COMMISSION ______________________________________________________________________________ RECOMMENDATION:

Appoint two youth members to the Parks and Recreation Commission to fill scheduled vacancies.

FISCAL IMPACT:

None associated with this report.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Parks and Recreation Commission was re-formed by resolution of the City Council on May 16, 2017. The Commission was formed as a five-member advisory board. At this same meeting the City Council adopted, by resolution, Commission By-Laws which provide guidance for the operation and governance of the Parks and Recreation Commission.

The Bike Pedestrian Advisory Committee By-Laws were modified several years ago to include a youth member. Each of the youth members has provided invaluable insights and input to that Committee. On August 28, 2024, the Parks and Recreation Commission requested Staff seek City Council approval for adding youth representation to the Commission.

On October 1, 2024, the City Council adopted a resolution amending the Parks and Recreation Commission By-Laws providing for the addition of two youth members for a total of seven regular (voting) members. The scheduled vacancies were duly noticed to the community via multiple outlets. At the March 4, 2025, and March 18, 2025, meetings, the City Council appointed Youth Representatives to the Parks and Recreation Commission. 306

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DISCUSSION:

Since their appointments, the two youth members have completed their term as representatives. The City has advertised the two youth seat openings on the website, via enews and in the San Mateo Daily Journal to bring awareness to the opening.

The application period commenced on August 10, 2026, with a total of 4 willing to serve forms submitted. One applicant lives in Moss Beach and therefore is ineligible to serve on the Commission. Staff recommends that the Council make two appointments to fill the scheduled youth vacancies.

ATTACHMENTS:

Willing to Serve forms received
307
Print
Thank you for your willingness to participate in making Half Moon Bay a better place! This "Willing to Serve" form can be used to apply to serve on one of the City's Commissions or Committees. Please note that information provided on this form is considered public information and may be made available to other applicants, members of the media, or the general public.

Professional experience*
I work hospitality at Half Moon Bay Yacht Club.

Civic activities and community involvement*
I attended Future Leaders Civic Academy in 2026. I participate in beach clean ups through Pacific Beach Coalition and Surfrider Foundation.

Please include any present or past membership on county or city boards, commissions, committees, community groups, or other organizations
Are you able to attend:*
Night meetings
Daytime meetings
Either night or daytime meetings
Why are you seeking to be appointed to a City commission or committee?* I am very interested in being part of creating positive experiences for our community and representing younger community members' views. I participated in the Half Moon Bay Future Leaders Civic Academy and attended Boys and Girls State this summer. Both experiences increased my enthusiasm for being part of the government process and making a difference in the lives of others. 310
Have you attended any meetings of the City Council or other Half Moon Bay commissions or committees?* Yes
No
How did you become aware of this opportunity to serve?* Through the Half Moon Bay Community eNews
Today's date*
July 19, 2026
Signature*
Checking this box constitutes your signature and confirms that the information provided is accurate 311
Print
Thank you for your willingness to participate in making Half Moon Bay a better place! This "Willing to Serve" form can be used to apply to serve on one of the City's Commissions or Committees. Please note that information provided on this form is considered public information and may be made available to other applicants, members of the media, or the general public.

Please include any present or past membership on county or city boards, commissions, committees, community groups, or other organizations
Are you able to attend:*
Night meetings
Daytime meetings
Either night or daytime meetings
Why are you seeking to be appointed to a City commission or committee?* I wish to be appointed to the commission for experience and to help and serve my community. 314
Have you attended any meetings of the City Council or other Half Moon Bay commissions or committees?* Yes
No
How did you become aware of this opportunity to serve?* Through a family member
Today's date*
July 22, 2026
Signature*
Checking this box constitutes your signature and confirms that the information provided is accurate 315
Print
Thank you for your willingness to participate in making Half Moon Bay a better place! This "Willing to Serve" form can be used to apply to serve on one of the City's Commissions or Committees. Please note that information provided on this form is considered public information and may be made available to other applicants, members of the media, or the general public.

Commission or Committee for which you are applying:*
Planning Commission
Parks and Recreation Commission
Main Street Bridge Advisory Committee
General Plan Advisory Committee
Bicycle and Pedestrian Advisory Committee
Architectural Advisory Committee
Name*
Simon Robert-Richard Delnagro
Address*
Willing to Serve - Submission #9527
Date Submitted: 8/8/2026
316
317
How long have you lived in Half Moon Bay?*
3 years
Educational background*
k-9th
Professional experience*
Worked at Half Moon Bay Feed and Fuel ~6 months
Civic activities and community involvement*
None
Please include any present or past membership on county or city boards, commissions, committees, community groups, or other organizations
Are you able to attend:*
Night meetings
Daytime meetings
Either night or daytime meetings
Why are you seeking to be appointed to a City commission or committee?* To help my community
318
Have you attended any meetings of the City Council or other Half Moon Bay commissions or committees?* Yes
No
How did you become aware of this opportunity to serve?* My father told me of it
Today's date*
Aug 8, 2026
Signature*
Checking this box constitutes your signature and confirms that the information provided is accurate 319
Print
Thank you for your willingness to participate in making Half Moon Bay a better place! This "Willing to Serve" form can be used to apply to serve on one of the City's Commissions or Committees. Please note that information provided on this form is considered public information and may be made available to other applicants, members of the media, or the general public.

Educational background*
In high school.

Professional experience*
None
Civic activities and community involvement*
Sea Hugger volunteering
Please include any present or past membership on county or city boards, commissions, committees, community groups, or other organizations
Are you able to attend:*
Night meetings
Daytime meetings
Either night or daytime meetings
Why are you seeking to be appointed to a City commission or committee?* To give the community the deserving feedback of its parks and recreational elements from the perspective of a high school student and what different values I see and can give. 322
Have you attended any meetings of the City Council or other Half Moon Bay commissions or committees?* Yes
No
How did you become aware of this opportunity to serve?* Through my college counselor.

Today's date*
08/08/26
Signature*
Checking this box constitutes your signature and confirms that the information provided is accurate 323

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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Denise S. Bazzano, City Attorney
TITLE: CONSIDERATION OF AMENDMENTS TO CITY COUNCIL RULES OF PROCEDURE

AND DECORUM
______________________________________________________________________________ RECOMMENDATION:

Consider amendments to the City Council Rules of Procedure and Decorum (“City Council Rules”) and adopt a Resolution approving amendments to City Council Rules.

FISCAL IMPACT:

There is no direct fiscal impact associated with this action.

STRATEGIC ELEMENT:

This action supports Inclusive Governance elements of the Strategic Plan.

BACKGROUND:

The City Council Rules were first adopted in May 2016, and subsequently revised on February 7, 2017, December 5, 2017, and May 19, 2020. The City Council Rules provide specific guidance to the Council on the duties and role of the Mayor, Vice Mayor, and Councilmembers during meetings. The City Council Rules also provide guidance on how meetings should be conducted including the types of meetings, voting, public participation, agendas, and communications, among other topics. The City Council Rules also incorporate Rosenburg’s Rules of Order to the extent that the City Council Rules do not address an issue of parliamentary procedure.

DISCUSSION
Recently, the City Council directed staff to consider and bring back for Council consideration a rule setting a deadline for the consideration of written communication from members of the public in advance of a meeting.

Staff reviewed the existing City Council Rules and noted that Chapter 6 of the City Council Rules addresses written communication received in advance of a meeting, as well as written 324

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communications received during and after a meeting. However, improvements could be made to clarify those requirements for written communications.

Specifically, Section 7, within Chapter 6, could be revised to add a specific time by which written communications will be received and compiled and distributed to the Council prior to the Council meeting. Any communications received after that deadline would be identified as “late” and be linked to the agenda but not compiled and distributed to the Council. The revisions are proposed to read as follows (with additions in underline):
“7. Written Communications for Council Meetings
A. The deadline for the receipt of written communications for inclusion in the agenda packet is 5:00 p.m. the Wednesday before the Council meeting. This is to allow for adequate staff review and analysis, and to ensure public access to information, plans, correspondence, and other documents supporting planning applications being heard by the City Council.

B. Correspondence relating to a specific City Council agenda item received after the publication of agenda packets but before 2:00 p.m. on the day of the meeting shall be compiled and distributed to the City Council prior to the City Council meeting. Any correspondence received by the City Council after 2:00 p.m. on the day of the meeting shall be compiled and attached or linked in the agenda and identified as “late correspondence”.

C. Materials distributed to Councilmembers during the meeting shall be available for viewing by the public during the meeting if the materials were prepared by the City or a Councilmember, or at the conclusion of the meeting if prepared by another person.

D. If a Councilmember receives materials regarding an agenda item, s/he shall forward it the City Clerk and the City Manager as soon as possible.

E. If late correspondence is received, the City Council will determine at the meeting whether to continue or refer the item to the appropriate Board and/or Commission if significant changes to a project, or significant new information has become known.” This proposed revision to subsection B of Section 7 would provide clear guidance to the Council and the public about how written communications will be received and provided to the Council prior to a meeting. Other amendments to Chapter 6 include a proposed revision to Section 5 to change the heading to “General Correspondence,” rather than just “Correspondence” and relocating and revising subsection B to Section 7.

Section 7, within Chapter 4 addresses public participation at meetings. Amendments are being proposed to conform with changes to the Brown Act since the last update to the City Council Rules in 2020.
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Subsections A, B and C within Section 7 of Chapter 4 are proposed to be updated to specify that persons may provide public comments remotely through the City’s two-way audio-visual platform and updated to be consistent with the requirements for “disruption” of meetings consistent with California Government Code section 54957.95. Subsection C within Section 7 is also proposed to be updated to specify that public speakers in need of transaction services will be allowed twice the allotted time for speakers in accordance with Government Code section 54954.3(b).

Section 7, within Chapter 4, is proposed to read as follows (with additions in underline and deletions in strikethrough):
“7. Public Participation
A. Members of the public are encouraged and invited to participate in the legislative process by submitting written comments before the meeting or speaking in person at a meeting or participating remotely through the City’s two way audio-visual platform. Persons wishing to speak during Public Forum must limit their comments to items within the subject matter jurisdiction of the City Council. Persons wishing to speak on any specific agenda item must limit their comments to the topic or subject matter of the agenda item.

B. It is the intent of these rules to allow everyone to be heard without fear of jeers or cheers that may discourage public participation. For this reason, these rules are taken seriously. Disruptive or unruly behavior may result in removal from the City Council meeting Members of the public have a right to address the Council. However, it is also important that members of the public respect the order, procedures and decorum of the City Council meetings. The Mayor, or their designee, may remove or cause the removal of an individual for disrupting the meeting, after providing the necessary warning, pursuant to California Government Code section 54957.95. Prior to any removal, the Mayor or their designee, shall confirm with the City Attorney that removal of an individual is appropriate.

C. Time Limits for public comment:

1. Individual Speakers - 3 minutes is customary. For public speakers in need of translation services, the speaker timer will be paused during translation. time will be at least twice the amount of the allotted time for speakers in accordance with Government Code section 54954.3(b).” …
Finally, proposed revisions to subsection F of Section 7 within Chapter 4, would remove the reference to public comments on the Consent Calendar items being received during the Public Forum section of the agenda and reflects the change in practice to take public comment prior to any action on the Consent Calendar. The proposed revisions to subsection F would also 326

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provide that any items pulled off of the Consent Calendar by a Councilmember would be considered separately at the end of the Consent Calendar or other portion of the Agenda.

The Council should consider and discuss the proposed revisions. This item allows for the City Council to review the document and make any revisions to the City Council Rules desired by the Council.

If the Council adopts the proposed Resolution to approve the amendments to the City Council Rules, the City Clerk will work with the City Attorney to update the language in the Agenda, as necessary, to be consistent with the changes.

ATTACHMENTS

1. Resolution

2. Redline of Proposed Edits to City Council Rules
327
ATTACHMENT 3 - City Council Rules of Procedure and Decorum 4926-9399-6998 v.1.docx RESOLUTION NO. 2026-

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

AMENDMENTS TO CITY COUNCIL RULES OF PROCEDURE AND DECORUM WHEREAS, the City Council Rules were first adopted in May 2016, and subsequently revised in February 7, 2017, December 5, 2017 and May 19, 2020; and WHEREAS, the City Council Rules provide specific guidance to the Council on the duties and role of the Mayor, Vice Mayor and Councilmembers during meetings; and WHEREAS, the City Council Rules also provide guidance on how meetings should be conducted including the types of meetings, voting, public participation, agendas, and communications, among other topics; and
WHEREAS, the City Council desires to amend the City Council Rules of Procedure and Decorum to update provisions relating to written communications and public participation.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Half Moon Bay that the amendments to the City Council Rules of Procedure and Decorum, attached hereto as Exhibit A, are hereby approved.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18st day of August 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
328
1 City Council Rules of
Procedure and Decorum
Adopted on May 17, 2016
Revised February 7, 2017, December 5, 2017, May 19, 2020, and August 18, 2026 Deleted: and 329
2 Chapter 1. Authority of the City Council

1. The City Council is the policy and lawmaking body of the City. State and local laws define the powers and responsibilities of the City Council.

2. General Authorities and Applicability
When not in conflict with the Constitution, laws of the State of California, or local City ordinances, these City Council Rules of Procedure and Decorum (“Rules”) shall be in effect upon adoption by resolution of the Council.

3. Revisions to these Rules
The Council shall review and revise these rules as needed.

4. Rosenberg’s Rules of Order
To the extent these rules do not address an issue of parliamentary procedure for legislative body meetings, Rosenberg’s Rules of Order: Simple Parliamentary Procedures for the 21st Century, Revised 2011, shall apply.
330
3 Chapter 2. Duties

1. Duties of Mayor
A. To conduct meetings of the City Council as its chairperson.

1. Ensure that consideration of items on the agenda move along without delay.

2. Ensure that petitioners, proponents, and opponents are heard but not allowed to disrupt the meeting.

3. Ensure that decorum is maintained at the meeting.

4. In presiding over matters where the public has provided testimony and/or raised questions, the Mayor should:
a. Direct questions or comments requiring a response to staff for a response.
b. Ensure that staff and members of the public direct their comments to the chair.
c. If necessary, help keep Councilmember questions relevant to the matter being considered by the Council.
d. If necessary, consider calling for a brief recess if orderly conduct of the meeting is being disrupted.
e. Announce the decision of the Council on all subjects.

5. To ensure that each member of the Council is provided an opportunity to completely express their views on items of business, the Mayor should:
a. See that Councilmembers ask to be recognized by the Mayor before speaking.
b. Ensure that each Councilmember is given the opportunity to fully express their views.

B. To represent City Government as its chief elected official at community functions, events, and meetings.

C. On behalf of the City Council, to officially welcome dignitaries, officials, and gatherings.
331
4 D. To correspond on behalf of the Council on subjects, issues, and legislative proposals provided that opinions expressed on behalf of the Council or City Government are not inconsistent with established policies or previously expressed Council consensus.

E. To vote as the City’s “voting delegate” at the League of California Cities Annual Conference and other similar meetings. This responsibility may be delegated to another Councilmember.

F. To participate in the preparation of the agendas of meetings of the City Council as necessary.

G. To recommend Councilmembers for liaison positions on various boards, commissions, and agencies. The Mayor’s recommendations shall be discussed and confirmed by a majority vote of the Council and are subject to change.

H. Nothing under the Mayor’s duties shall limit any individual Councilmember’s ability to interact with members of the public.

2. Duties of Vice Mayor
In the absence of the Mayor from the City or a Council meeting, the Vice Mayor shall possess all powers of the office of the Mayor, and be subject to all prescribed duties for that office.

3. Duties of Councilmembers
A. Arrive on time for all Council meetings.

B. Review all meeting materials in preparation for Council meetings.

C. To fulfill the liaison assignments to legislators, external agencies, and the City’s boards and commissions.
332
5 Chapter 3. Councilmember Conduct

1. Members shall:

A. put constituents foremost at all times;
B. treat each other, staff, and members of the public with dignity, courtesy, and respect;
C. encourage and / or ensure that the public treats the City Council, staff, and members of the public with dignity, courtesy, and respect; D. maintain confidentiality of all closed session materials and discussion; E. be attentive to others, limiting interruptions and distractions; F. encourage diverse viewpoints in deliberations while being mindful not to prolong discourse or block consensus;
G. agree to respectfully disagree;
H. keep comments clear, concise, and on-topic;
I. start and end meetings on time, work from the agenda; J. present problems in a way that promotes discussion and resolution.

2. Councilmembers are subject to all provisions of City Policies. 333
6 Chapter 4. Meetings

1. All Council decisions must be taken at City Council meetings. Before taking action, the City Council may be informed by project applicants, interested members of the public, and City staff.

2. No business may be transacted by the Council at a regular or special meeting unless a quorum of the membership is present (50% plus one of those currently serving).

3. Council Meeting Dates
A. Once a year, in December, adopt a schedule of Council meetings for the following year identifying any regular meeting dates that need to move or be cancelled due to major holidays.

B. Meeting dates may be amended with the approval of the Council.

4. Types of Meetings
A. Regular Meetings are conducted at the Ted Adcock Community Center on the first and third Tuesday nights of each month. In February, July, and August, only one meeting is held during the month. It is also customary to cancel a meeting if it falls on Election Day. The meetings begin at 7:00 p.m. It is City policy to make every effort to complete and distribute the agenda and related reports by the preceding Friday.

B. Special Meetings are called at a non-regular meeting date and / or time. They are called with a minimum of 24 hours’ notice, versus 72 hours’ notice for regular meetings.

C. Study Sessions are special meetings that are held for the purpose of providing information to the City Council, particularly on issues that are more complex or more time-consuming than matters typically scheduled on a regular City Council meeting agenda. At study sessions, Councilmembers may state their individual responses and questions to the information provided and may collectively provide direction to City staff.

D. Closed Sessions can be part of either special or regular meetings. The Council conducts its business in public to the greatest extent possible. State law recognizes that public discussion of certain items could jeopardize the public interest, compromise the City’s position, or cost the citizens of San Mateo financially; and, therefore, generally allows the City Council to hold closed session meetings for the consideration of certain personnel matters, labor negotiations, real property negotiations, matters of public security, and the discussion of litigation, among other things. These rules provide for strict confidentiality of City Council discussion 334
7 as required by State law. The procedures for the conduct of the closed sessions shall be the same as those for open session meetings, except that the public, after an opportunity for public comment, are excluded.

E. Emergency Meetings are allowed per the Ralph M. Brown Act when an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of the public’s well-being.

5. Voting
A motion, second, and a majority vote of the Council shall be required for any formal action of Council.

Any vote of abstention must clearly indicate for the record the basis for the abstention including any conflict of interest.

6. The Mayor, with the approval of a majority of the Council, can change the order of hearing of items on the agenda.

7. Public Participation
A. Members of the public are encouraged and invited to participate in the legislative process by submitting written comments before the meeting or speaking in person at a meeting or participating remotely through the City’s two way audio-visual platform. Persons wishing to speak during Public Forum must limit their comments to items within the subject matter jurisdiction of the City Council. Persons wishing to speak on any specific agenda item must limit their comments to the topic or subject matter of the agenda item.

However, it is also important that members of the public respect the order, procedures and decorum of the City Council meetings. The Mayor, or their designee, may remove or cause the removal of an individual for disrupting the meeting, after providing the necessary warning, pursuant to California Government Code section 54957.95. Prior to any removal, the Mayor or their designee, shall confirm with the City Attorney that removal of an individual is appropriate.

C. Time Limits for public comment:

1. Individual Speakers - 3 minutes is customary. For public speakers in need of translation services, the speaker time will be at least twice the amount of Deleted: Disruptive or unruly behavior may result in removal from the Council meeting
335
8 the allotted time for speakers in accordance with Government Code section 54954.3(b).

2. Applicants / Appellants on Planning Commission appeals – 10 minutes

3. The Mayor may, at his/her discretion, limit the amount of time allotted to the speaker(s) when needed
D. Members of the public are invited to speak at the podium microphone to ensure all attendees can hear and so that the comments can be captured on the video recording.

E. Individuals who wish to speak should submit a speaker card to the “Speaker Cards” box to be called up at the appropriate time.

F. Members of the public are expected to respect other members of the public as well as the City Council and staff during public meetings by acknowledging and adhering to the rules for public comments and participation. Members of the public may not approach the dais during the meeting at any time for any reason.

Disruption of a meeting may be cause for removal by a member of the Sheriff’s Department.

G. The public is welcome to address the City Council on Consent Calendar items and public comment will be taken prior to any action on the Consent Calendar. At the request of Councilmembers and at the Mayor’s discretion, he or she may pull an item off the Consent Calendar . The Consent Calendar consists of matters that are routine in nature, such as minutes, budgeted agreements, and resolutions. They are approved under one blanket motion, except for items that are pulled off by Councilmembers for discussion. Those items are considered separately at the end of the Consent Calendar or some other portion of the Agenda.

8. Agendized Discussion Items (Ordinances and Public Hearings, Staff Reports and Resolutions)
A. Staff / applicant presentation
B. Council questions to applicant and/or staff
C. Open public hearing (or public comment section) for comments D. Close public hearing (or public comment section)
E. Additional Council questions, if warranted
F. Response by staff to questions / concerns, if warranted Deleted: timer will be paused during translation.1
Deleted: and any item within the jurisdiction of the City Council and not listed on the agenda during the Public Forum section of the Agenda, which occurs directly before the Consent Calendar is approved.

Deleted: based on submitted speaker cards for the item
from the public rather than accept public comments on the item during Public Forum
Deleted: 2
336
9 G. Council discussion and deliberation
H. Council votes

9. Appeals
A. Appeals are public hearings and will follow the order stated in #7 with the following time allocations, unless otherwise required or provided by law:

1. Applicant – 10 min

2. Appellant – 10 min

3. Individual Speakers – 3 min

4. Applicant Rebuttal – if reserved
B. Appeals from decisions of the City’s Boards and Commissions shall appear on the Council agenda for discussion. Council has the options of affirming the action of the commission, modifying the action of the commission, referring the matter back to the commission, or reversing the decision, unless otherwise required or provided by law.

C. Any person that addressed the Council during one of the 10-minute periods (as an applicant or appellant) may not speak again during the public comment period for individual speakers on the appeal.

10. Items Considered after 11:00 p.m.

Unless a majority of the Council determines there is an urgent need to act, no items shall be continued or new items opened for discussion or action after 11:00 p.m. 3 11. Action Minutes
A. The City Council shall use Action Minutes (action minutes record the action taken by the City Council and contain very little, if any, narrative content) or light summary at the discretion of the City Clerk, to record their proceedings.

B. Motions and votes are shown in the record.

C. Media (video) recordings may be used in order to provide a verbatim record of meetings.
337
10 12. Conflict of Interest
A. The Political Reform Act, implemented, regulated, and enforced by the Fair Political Practices Commission (FPPC), controls financial conflicts of interest.

B. Government Code §1090 applies to prohibit the execution or approval of City contracts in which a public official has a financial interest.

C. As soon as it appears to a Councilmember that they may have a prohibited financial interest in any City contract, or an item that may be presented to the City Council, the Councilmember should immediately consult with the City Attorney at the earliest opportunity for advice on whether a disqualifying conflict of interest exists.

D. With full consideration of the City Attorney’s advice, it is up to each individual Councilmember to decide for him/herself whether there is a conflict of interest.

E. A member shall not vote upon any matter on which s/he has a conflict of interest.

F. A member shall openly state the reason for his/her conflict of interest.

G. A member who is disqualified by a conflict of interest shall recuse him/herself, explain the basis for the recusal are required by law, step away from the dais and leave the room during the discussion and deliberation of the item, unless the item is agendized under the Consent Calendar.
338
11 Chapter 5. Meeting Agendas

1. Agenda Item Submission
A. Persons who can place matters on the agenda: City Councilmember, City Manager, or City Attorney
B. Councilmember:

1. A Councilmember may request an item be considered on a future agenda and, if a second Councilmember agrees with the request, staff will prepare a staff report.

2. Councilmembers may make this request verbally during a meeting or may submit a written request.

C. Members of the Public

1. A member of the public may request Council action in the following ways:
a. Write a letter to the City Council
b. Speak during the Public Comment period at a City Council meeting c. Attend annual Council strategic workshop and provide input

2. Upon agreement of a majority of the City Council, Council will determine whether to place on a future agenda an item requested by the public. 339
12 Chapter 6. Communication

1. All communications are public records.

All letters, memoranda, and email communications involving City Councilmembers and members of boards, commissions, committees and task forces, the subject of which relate to the conduct of government or the performance of any governmental function, with a few exceptions as outlined in the Public Records Act, are public records.

2. The Council, in adopting this policy, does not waive attorney-client-privilege or any other privilege associated with a closed session authorized under the Ralph M. Brown Act.

3. Ralph M. Brown Act
Each Councilmember should be mindful of all of the requirements of the Brown Act in communicating with each other.

4. Mail Processing
A. Members of the City Council may receive mail and other materials through City Hall.

B. General correspondence addressed to Councilmembers as a whole may be opened and delivered to all Councilmembers if appropriate.

5. General Correspondence
A. The City Clerk is authorized to receive and take administrative action on all correspondence directed to the City Council. The City Clerk may also respond to correspondence submitted to the full City Council on non-agenda items or authorize a staff member to respond. A courtesy copy is provided to each Councilmember.

B. After the City Council has taken a position on an issue, official correspondence should reflect this position. While Councilmembers who may disagree with a position are free to prepare correspondence on such issues as private citizens, City letterhead, official City Council title, and staff support should not be utilized. In addition, City letterhead and staff support cannot be utilized for personal or political purposes.

C. City letterhead, logo, insignia and brand, as well as staff support, cannot be utilized for personal or political purposes.

6. Electronic Communication
Deleted: <#>Generally, correspondence relating to a specific City Council agenda item shall be distributed with the agenda report; correspondence received after the publication of agenda packets is to be compiled and distributed to the City Council prior to the City Council meeting. ¶
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13 A. All emails sent and received through the City server are retained per the City’s Records Retention Schedule and are subject to the Public Records Act.

B. All emails regarding City business should be sent from the Councilmember’s official City email address.

7. Written Communications for Council Meetings
A. The deadline for the receipt of written communications for inclusion in the agenda packet is 5:00 p.m. the Wednesday before the Council meeting. This is to allow for adequate staff review and analysis, and to ensure public access to information, plans, correspondence, and other documents supporting planning applications being heard by the City Council.

Any correspondence received by the City Council after 3:00 p.m. on the day of the meeting shall be compiled and attached or linked in the agenda and identified as “late correspondence”.

D. If a Councilmember receives materials regarding an agenda item, s/he shall forward it the City Clerk and the City Manager as soon as possible.

8. Council Communication to Boards and Commissions
A. Councilmembers should be mindful not to unduly influence—through their attendance—the decision at a Board or Commission meeting so as not to get ahead of the process.

B. It is not appropriate for a Councilmember to make public comments at a Board or Commission meeting.

9. Council - Staff Relations
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14 A. Individual Councilmembers may make requests of City staff through the City Manager or Department Head for limited research and information without the formal concurrence of a majority of the member’s colleagues. Requests that will require significant staff time may be referred to the full Council and only pursued if supported by a majority of the Council. The City Manager should be kept aware of all requests.

B. Councilmembers should direct any questions on staff reports to the City Manager or designee.

C. Councilmembers are encouraged to submit their questions on agenda items to the City Manager or Department Head (copying the City Manager) as far in advance of the meeting as possible so that staff has sufficient time to research and can be prepared to respond at the Council meeting.

D. Clarifications or technical questions will be answered before the meeting whenever possible.

E. Questions and all staff-prepared responses will be forwarded to all Councilmembers.

10. Speaking for “the City”
Similar to written correspondence, when Councilmembers are requested to speak to groups or are asked the City Council’s position on an issue, the response should reflect the position of the City Council as a whole. Of course, a member may clarify his/her vote on a matter by stating, for example, “While I voted against X, the City Council voted in support of it.” When representing the City at meetings or other venues, it is important that those in attendance gain an understanding of the City Council’s position rather than that of an individual member.

11. Speaking as an Individual
On occasion, Councilmembers may wish to transmit correspondence on an issue upon which the City Council has yet to take a position or about an issue for which the City Council has no position. In these circumstances, members should clearly indicate in their communications that they are not speaking for the City Council as a whole, but for themselves as an individual member of the Council.
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15 Chapter 7. Legislative

1. Ceremonial Matters
A. There are several different types of action the Council may take to provide recognition or express appreciation:

1. Certifications of Appreciation or Recognition
Commendations are typically issued to acknowledge the activities of a person or organization. Examples of traditional recipients would include departing Board and Commission Members, high school students with 4.0 grade point averages, Chamber of Commerce Awards, winners of local art or speech contests, etc.

2. Proclamations
Public announcements directing attention to a person, organization or event. Proclamations will be issued subject to the policy described below.

B. Preparation of City Proclamations

1. It is the policy of the City Council to issue proclamations for certain events or causes, when such a proclamation positively impacts the community and conveys an affirmative message to residents. Examples of causes for which proclamations are regularly and routinely issued include, but are not limited to: notable accomplishments by citizens, youth groups, schools, local organizations, non-profit groups, and local events that deserve special recognition (Bicycle Month, Public Works Month, Red Cross Month, Immigrant Heritage Month, etc.). Discretion should be used in determining whether or not to issue a proclamation. Proclamations that are political in nature, are controversial, or that likely would not enjoy a high-level of community interest and support, are discouraged.

2. It will be the policy of the City Council to process requests for proclamations in the following manner:
a. If the Mayor determines that the proclamation request is consistent with the policy stated above, the Mayor will direct the City Clerk to prepare the proclamation and the proclamation will be issued. b. Upon receipt of the draft proclamation language, the City Clerk will place the item on the next available meeting agenda. Depending on the nature and time-sensitivity of the request, the Mayor and Vice Mayor can act without full formal concurrence of the Council when the situation warrants.
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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim Public Works Director / City Engineer TITLE: HIGHWAY 1 - NORTH (CIP PROJECT NO. 538) DESIGN AGREEMENT AMENDMENT NO. 8
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Amendment No. 8 to the professional services agreement with Mark Thomas and Company, Inc. (MTCO) for an additional amount not to exceed $120,000 that covers supplemental design, permitting, certification, and bid support services for the Highway 1 Safety and Operational Improvements Project - North (CIP Project No. 0538).

FISCAL IMPACT:

The Highway 1 Safety and Operational Improvements Project - North is included in the City's adopted FY 2026-27 Capital Improvement Program. Amendment No. 8 would increase MTCO's potential compensation by $120,000. Based on MTCO's current contract budget summary, this would increase the total authorized agreement amount from $1,718,128.82 to $1,838,128.82.

The amendment also reallocates approximately $67,596 among existing contract tasks to align the remaining budget with work performed. This reallocation does not increase the total agreement amount. Costs will be charged to CIP Project No. 0538. Staff will seek reimbursement for eligible costs under applicable project funding agreements, with any non-reimbursable costs paid from available project funds
The overall CIP project has a total, fully funded budget of $25.5 million and total expenses to date of around $1.9 million. Based on current construction and support estimates, there is sufficient funding in the CIP for this additional work.

STRATEGIC ELEMENT:

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

The Planning Commission adopted the project's Negative Declaration and approved the Coastal Development Permit on December 11, 2018. Amendment No. 8 provides professional services needed to implement the previously approved project and does not change the approved project scope. Accordingly, no additional environmental review is required for this action.

BACKGROUND:

The Highway 1 North project will improve safety and operations along Highway 1 between North Main Street and Spindrift Way. Major improvements include a new signalized intersection at Terrace Avenue; safer east-west pedestrian and bicycle crossings; protected vehicle turning movements; consolidated access at Grand Boulevard and Frontage Road; improvements to the Naomi Patridge Trail connection; an east-side Class I bicycle and pedestrian path; extension of the four-lane highway configuration; turning-lane and median improvements; green infrastructure; and upgraded transit stops that meet current accessibility requirements.

On April 2, 2019, the City Council approved a professional services agreement with MTCO in the amount of $945,000 for design and preparation of plans, specifications, and estimates (PS&E).

The Council subsequently approved amendments for additional design, utility-relocation, rightof-way, and permitting work required as the project advanced through Caltrans review.

On August 19, 2025, the City Council approved Amendment No. 7 in the amount of $188,181.

Amendment No. 7 provided budget to respond to extensive comments received from Caltrans following the March 2025 100-percent submittal, coordinate resolution of those comments, revise the contract documents, and continue work toward encroachment permit issuance.

Since approval of Amendment No. 7, MTCO and the City have continued coordinating with Caltrans and updating the final project documents. Caltrans requested additional revisions affecting the plans, specifications, cost estimate, and technical reports. The affected design elements include drainage, stormwater quality, construction staging, traffic management, striping, landscaping, and signal design. As of July 2026, Caltrans informed the City that the 100% Plans, Specifications and Estimate (PS&E) for the project have finally been approved. Only minor remaining items are needed to obtain an encroachment permit and for the project to be ready to advertise. Outstanding items still being finalized include acceptance of the project Storm Water Data Report, preparation of the project Quality Management Plan, Right-of-Way certification and approval of a Coop Agreement related to additional grant funding being provided by San Mateo County Transportation Authority, via Caltrans.

DISCUSSION:

Amendment No. 8 provides the additional budget needed to complete the remaining preconstruction work and support the City through bidding.

MTCO anticipates completing the encroachment permit process through September 2026. The City currently anticipates advertising and bidding the project around December 2026. 345

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Amendment No. 8 does not include design support during construction; any future construction-phase services will be brought forward separately if needed.

Approval of the amendment will allow the City to maintain progress toward final Caltrans authorization and construction procurement while staff continues coordinating the project funding and delivery schedule.

ATTACHMENTS:

1. Resolution

2. MTCO proposal
346
RESOLUTION NO. C-2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 8 TO THE PROFESSIONAL SERVICES AGREEMENT WITH MARK THOMAS AND COMPANY INC. FOR THE HIGHWAY 1 SAFETY AND OPERATIONAL IMPROVEMENTS PROJECT – NORTH (CIP PROJECT NO. 0538) IN THE AMOUNT OF $120,000.00
WHEREAS, on December 11, 2018, the Planning Commission adopted the Negative Declaration and approved the Coastal Development Permit for the Project and Caltrans approved the Permit Engineering Evaluation Report (PEER) on February 8, 2019; and WHERAS, on April 2, 2019, the City Council approved a professional services agreement with Mark Thomas and Company, Inc. (MTCO) in the amount of $945,000 for design and preparation of plans, specifications, and estimates for the Project; and WHEREAS, the City Council subsequently approved amendments to the agreement for additional design, utility-relocation, right-of-way, and permitting services required to advance the Project through Caltrans review; and
WHEREAS, on August 19, 2025, the City Council approved Amendment No. 7 in the amount of $188,181 for additional design services and permitting support needed to respond to Caltrans comments on the 100-percent submittal and advance the Project toward final approval; and
WHEREAS, Caltrans subsequently requested additional revisions affecting the plans, specifications, cost estimate, and technical reports, including drainage, stormwater quality, staging, traffic management, striping, landscaping, and signal design; and WHEREAS, additional professional services are required to complete the plan updates, obtain the Caltrans encroachment permit, complete right-of-way and utility certifications, and support the City during bidding; and
WHEREAS, MTCO has proposed to perform these additional services for an additional not-to-exceed amount of $120,000; and
WHEREAS, Amendment No. 8 implements the previously approved Project and does not change the approved project scope, and no additional environmental review is required for this action.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the City Manager to execute Amendment No. 8 to the professional services agreement with Mark Thomas and Company, Inc. for an additional amount not to exceed $120,000 that covers supplemental design, permitting, certification, and bid support services 347
for the Highway 1 Safety and Operational Improvements Project - North (CIP Project No. 0538), in substantially the form approved by the City Attorney, and to make minor, non-substantive revisions necessary to effectuate the amendment.
******************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18
th of August 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
348
August 11, 2026
Mr. Dale Leda
Interim Public Works Director/City Engineer
501 Main Street
Half Moon Bay, CA 94019
Project No.: SJ-19102
RE: Highway 1 Safety & Operational Improvements North, Amendment #8 Dear Dale:

Per your request, Mark Thomas & Company, Inc. (Mark Thomas) has prepared this additional services letter for the Highway 1 Safety & Operational Improvements North project.

A detailed scope, budget and schedule to perform the additional services is below.

SCOPE OF SERVICES
Phase 530 – Task 4 100% Design and Bid Phase
Task 4.14 – Plan Updates
Caltrans requested additional plan updates after completion of the final design of the project. The comments affected the plans, specifications, cost estimate, and reports. Design features affected included drainage, stormwater quality, staging plans, traffic management, striping, landscaping, and signal design.

Task 4.15 – Encroachment Permit/ROW cert/util cert
Additional efforts are necessary to complete work on obtaining the Caltrans encroachment permit. These efforts include not only this permit but also obtaining right of way certification and utility certification.

Task 4.16 – Bid Support
Mark Thomas will provide support to the City of Half Moon Bay during the bidding process.

While the project is being advertised for bids, all questions concerning the intent shall be referred to the City Project Engineer for resolution. Mark Thomas will provide consultation with City staff in the interpretation of the contract documents. The interpretation of these items shall be analyzed for a decision by the City, as to the proper procedure required. Corrective action shall either be in the form of an addendum prepared by the Consultant and issued by the City, or by a covering change order after the award of the construction contract. 349
PAGE 2 OF 2

FEE ESTIMATE
Below is a cost breakdown for the Highway 1 Safety & Operational Improvements North Amendment #9. Additionally, Mark Thomas proposes to reallocate existing budgets as shown on the attached budget reallocation spreadsheet.

Fee Breakdown T&M NTE Amount
Task 4.14 Plan Updates $70,000
Task 4.15 Encroachment Permit/ROW cert/util cert $25,000 Task 4.16 Bid Support $25,000
Total Additional Budget $120,000

SCHEDULE
Plan updates are now complete. The encroachment permit process is anticipated to continue through September 2026. The City is expected to advertise and bid this project between October and December 2026.

Thank you for the opportunity to provide this letter for additional services for the Highway 1 Safety & Operational Improvements North project. Please give me a call if you need any additional information or have any questions regarding this letter.

Sincerely,
MARK THOMAS & COMPANY, INC.

Shawn P. O’Keefe, PE, QSD
Principal + Vice President
Accepted:

Signature
Name/Title
Date
350
Dale Leda SUMMARY 08/11/26
City of Half Moon Bay File No. SJ-19102
501 Main Street
Half Moon Bay, CA 94019 Re:

Engineering Services: Through February 22, 2026
PHASE TASK ORIGINAL 7/31 & 8/21/19 AM 3 AM 4 AM 5 AM 6 AM 7 PROPOSED REALLOCATED PREVIOUSLY BILLED COSTS BALANCE BILLED NO. NO. PHASE/TASK DESCRIPTION BUDGET Reall & Mod 7/21/2021 6/21/2022 3/21/2023 08/15/24 7/11/25 REALLOCATION/AM 8 BUDGET BILLED THIS PERIOD TO DATE REMAINING BUDGET 100 1 PROJECT MANAGEMENT, ADMIN & QC
001 1.1 Project Management 15,366.00 6,219.00 12,040.00 23,809.47 -11,132.88 -390.99 13,516.50 94,362.96 94,362.96 0.00 94,362.96 0.00 100% 002 1.2 Meetings 22,750.00 9,451.00 -3,663.42 -5,000.00 18,527.23 18,527.23 0.00 18,527.23 0.00 100% 003 1.3 Invoicing 6,088.00 6,219.00 1,179.85 124.00 2,847.44 14,994.16 12,656.72 0.00 12,656.72 2,337.44 84% 004 1.4 Quality Management Plan 11,043.00 3,113.00 -3,113.00 0.00 13,994.03 13,994.03 0.00 13,994.03 0.00 100% SUBTOTAL PHASE 100 55,247.00 0.00 25,002.00 12,040.00 23,809.47 -16,729.45 -5,266.99 16,363.94 141,878.38 139,540.94 0.00 139,540.94 2,337.44 98% 500 2 35% DESIGN PHASE
001 2.2 Field Survey for Controls 14,491.00 0.00 14,026.41 14,026.41 0.00 14,026.41 0.00 100% 003 2.3 Field Survey for Design 38,102.00 0.00 9,844.33 9,844.33 0.00 9,844.33 0.00 100% 005 2.4-1 Geotechnical/Materials Design Report 1,326.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 006 2.4-2 Geotechnical/Foundation Report 1,326.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 007 2.4-3 ADL Report 1,607.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 008 2.4-4 Supplemental Design Decision Doc 5,493.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 009 2.5 Layout 48,212.00 0.00 48,185.58 48,185.58 0.00 48,185.58 0.00 100% 010 2.6 Retaining Wall Type Selection Report 32,002.00 0.00 4,606.11 4,606.11 0.00 4,606.11 0.00 100% 011 2.8 Signal 14,888.00 -12,888.00 0.00 1,987.52 1,987.52 0.00 1,987.52 0.00 100% 012 2.9 Drainage Report 27,559.00 0.00 14,027.63 14,027.63 0.00 14,027.63 0.00 100% 013 2.10 Storm Water Data Report 8,979.00 0.00 11,963.70 11,963.70 0.00 11,963.70 0.00 100% 014 2.11 Striping & Signing 11,734.00 0.00 15,639.04 15,639.04 0.00 15,639.04 0.00 100% 100 KIKUCHI: 2.7 LANDSCAPE 23,600.00 0.00 23,600.00 23,600.00 0.00 23,600.00 0.00 100% 200 RADMAN: 2.1 NEW AUTOCAD BASE MAP 8,800.00 0.00 6,500.00 6,500.00 0.00 6,500.00 0.00 100% 300 PARIKH: 2.4-1
GEOTECHNICAL/MATERIALS DESIGN 30,812.00 0.00 20,849.07 20,849.07 0.00 20,849.07 0.00 100% 301 PARIKH: 2.4-2
GEOTECHNICAL/FOUNDATION REPORT 128,753.00 0.00 98,298.37 98,298.37 0.00 98,298.37 0.00 100% 400 GEOCON: 2.4-3 ADL REPORT 40,000.00 0.00 44,678.75 44,678.75 0.00 44,678.75 0.00 100% 500 EXARO: 2.4-5 POTHOLING 30,000.00 -5,036.20 9,963.80 9,963.80 0.00 9,963.80 0.00 100% 600 Y&C: 2.11 SIGNAL & SIGNING 0.00 5,000.00 4,980.00 4,980.00 0.00 4,980.00 0.00 100% SUBTOTAL PHASE 500 467,684.00 -7,888.00 0.00 0.00 0.00 0.00 -5,036.20 0.00 329,150.31 329,150.31 0.00 329,150.31 0.00 100% 510 3 65% DESIGN PHASE
001 3.1 Review 35% 6,680.00 0.00 9,718.85 9,718.85 0.00 9,718.85 0.00 100% 002 3.2 Plats and Descriptions 22,584.00 1,868.11 0.00 6,868.11 6,868.11 0.00 6,868.11 0.00 100% 003 3.3 Update Title, typical & layout 36,340.00 0.00 77,208.62 77,208.62 0.00 77,208.62 0.00 100% 004 3.4 Retaining Wall Layout, Elevation & Detail 33,509.00 0.00 33,481.21 33,481.21 0.00 33,481.21 0.00 100% 005 3.5 UtilitiesDrainage 40,001.00 0.00 26,634.08 26,634.08 0.00 26,634.08 0.00 100% 006 3.7 Signal 19,594.00 -17,594.00 0.00 1,331.90 1,331.90 0.00 1,331.90 0.00 100% 007 3.8 Striping & Signing 16,117.00 0.00 15,812.36 15,812.36 0.00 15,812.36 0.00 100% 008 3.9 Specifications & Estimates 32,876.00 0.00 18,445.32 18,445.32 0.00 18,445.32 0.00 100% 100 KIKUCHI: 3.6 LANDSCAPE 25,000.00 0.00 25,000.00 25,000.00 0.00 25,000.00 0.00 100% 600 Y&C: 3.7 SIGNAL 0.00 15,000.00 0.00 14,910.00 14,910.00 0.00 14,910.00 0.00 100% SUBTOTAL PHASE 510 232,701.00 -2,594.00 0.00 0.00 0.00 1,868.11 0.00 0.00 229,410.45 229,410.45 0.00 229,410.45 0.00 100% 530 4 100% DESIGN AND BID PHASE
001 4.1 Review 65% 4,643.00 0.00 4,637.98 4,637.98 0.00 4,637.98 0.00 100% 002 4.2 Update Title, typical and layout 24,305.00 0.00 43,482.30 43,482.30 0.00 43,482.30 0.00 100% SR 1/North Main Street to Spindrift Way Intersection
PS&E, P.O. #1362
351
PHASE TASK ORIGINAL 7/31 & 8/21/19 AM 3 AM 4 AM 5 AM 6 AM 7 PROPOSED REALLOCATED PREVIOUSLY BILLED COSTS BALANCE BILLED NO. NO. PHASE/TASK DESCRIPTION BUDGET Reall & Mod 7/21/2021 6/21/2022 3/21/2023 08/15/24 7/11/25 REALLOCATION/AM 8 BUDGET BILLED THIS PERIOD TO DATE REMAINING BUDGET 003 4.3 Retaining Wall/Independent Check 27,070.00 0.00 39,766.84 39,766.84 0.00 39,766.84 0.00 100% 004 4.4 Utilities/Drainage 25,825.00 14,438.00 982.82 0.00 47,245.19 47,245.19 0.00 47,245.19 0.00 100% 005 4.5 Signal 17,443.00 -12,518.00 2,734.00 0.00 3,750.35 3,750.35 0.00 3,750.35 0.00 100% 006 4.7 Striping & Signing 16,895.00 0.00 21,415.26 21,415.26 0.00 21,415.26 0.00 100% 007 4.8 Specifications/Estimates 22,405.00 0.00 35,177.93 35,177.93 0.00 35,177.93 0.00 100% 008 4.9 Update Fact Sheets 7,595.00 13,870.00 43,538.00 21,782.77 -38,312.82 -7.38 44,595.36 44,595.36 0.00 44,595.36 0.00 100% 009 4.10 Encroachment Permit Processing 7,595.00 100,846.00 71,848.00 83,299.76 134,074.13 2,844.32 449,886.13 449,886.13 0.00 449,886.13 0.00 100% 010 4.11 Bid Phase Support 9,592.00 2,687.03 249.00 12,528.03 12,528.03 0.00 12,528.03 0.00 100% 011 4.12 Caltrans SHOPP Project Coordination 40,000.00 -1,876.50 43,365.75 81,489.25 81,489.25 0.00 81,489.25 0.00 100% 012 4.13 Encroachment Permit Supplemental 168,779.13 22,488.37 191,267.50 132,119.00 59,148.50 191,267.50 0.00 100% 013 4.14 Plan Updates 0.00 0.00 0.00 0.00 0.00 0%
014 4.15 Encroachment Permit/ROW cert/util cert 25,000.00 25,000.00 0.00 0.00 0.00 25,000.00 0% 015 4.16 Bid Support 25,066.50 25,066.50 0.00 66.50 66.50 25,000.00 0% 099 MARK THOMAS REIMBURSABLES 9,500.00 6,000.00 -15,500.00 400.00 -217.89 182.11 182.11 0.00 182.11 0.00 100% 100 KIKUCHI: 4.5 LANDSCAPE 15,000.00 18,000.00 0.00 33,000.00 33,000.00 0.00 33,000.00 0.00 100% 102 KIKUCHI: 4.10 ENCROACHMENT PERMIT
PROCESSING 0.00 3,710.00 5,000.00 0.00 -47.50 8,662.50 8,662.50 0.00 8,662.50 0.00 100% 103 KIKUCHI: 4.11 BID PHASE SUPPORT 0.00 4,095.00 0.00 -827.50 3,267.50 3,267.50 0.00 3,267.50 0.00 100% 104 KIKUCHI: 4.13 ENCROACHMENT PERMIT
SUPPLEMENTAL WORK 0.00 10,000.00 -1,082.50 8,917.50 4,097.50 4,820.00 8,917.50 0.00 100% 600 Y&C: 4.5 SIGNAL 0.00 22,300.00 4,580.00 0.00 -184.80 26,695.20 26,695.20 0.00 26,695.20 0.00 100% 601 Y&C: 4.11 BID PHASE SUPPORT 0.00 700.00 0.00 -700.00 0.00 0.00 0.00 0.00 0.00 0% 602 Y&C: 4.10 ENCROACHMENT PERMIT
PROCESSING 0.00 3,760.00 5,000.00 0.00 2,915.00 11,675.00 11,675.00 0.00 11,675.00 0.00 100% 603 Y&C: 4.13 ENCROACHMENT PERMIT
SUPPLEMENTAL WORK 0.00 12,000.00 -1,095.00 10,905.00 4,150.00 6,755.00 10,905.00 0.00 100% 699 Y&C: REIMBURSABLES 0.00 25.00 0.00 -25.00 0.00 0.00 0.00 0.00 0.00 0% 700 ARWS: 4.10 ENCROACHMENT PERMIT
PROCESSING 0.00 14,000.00 0.00 -4,923.75 9,076.25 9,076.25 0.00 9,076.25 0.00 100% SUBTOTAL PHASE 530 178,368.00 10,482.00 148,058.00 134,886.00 125,082.53 141,931.16 192,388.57 109,731.68 1,137,689.68 1,016,899.68 70,790.00 1,087,689.68 50,000.00 96% 540 5 DESIGN SUPPORT DURING CONSTRUCTION
001 5.1 Design Support During Construction 0.00 0.00 0.00 0.00 0.00 0.00 0% 099 MARK THOMAS REIMBURSABLES 0.00 0.00 0.00 0.00 0.00 0.00 0% 100 KIKUCHI: 5.1 DESIGN SUPPORT DURING
CONSTRUCTION 0.00 0.00 0.00 0.00 0.00 0.00 0%
600 Y&C: 5.1 DESIGN SUPPORT DURING
CONSTRUCTION 0.00 0.00 0.00 0.00 0.00 0.00 0%
SUBTOTAL PHASE 540 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0% 900 EXTRA WORK - NOT YET AUTHORIZED
001 4.12 Extra Work Budget Allocation 11,000.00 -11,000.00 0.00 0.00 0.00 0.00 0.00 0% 098 Anticipated Salary Increases 6,095.62 -6,095.62 0.00 0.00 0.00 0.00 0.00 0% SUBTOTAL PHASE 900 11,000.00 0.00 0.00 0.00 0.00 -11,000.00 6,095.62 -6,095.62 0.00 0.00 0.00 0.00 0.00 0% GRAND TOTAL SERVICES 945,000.00 0.00 173,060.00 146,926.00 148,892.00 116,069.82 188,181.00 120,000.00 1,838,128.81 1,715,001.38 70,790.00 1,785,791.38 52,337.43 97% 352

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HALF MOON BAY

AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS STATIONARY LOCAL NO. 39 FOR THE PERIOD OF JULY 1, 2026, THROUGH JUNE 30, 2030 RECOMMENDATION:

Authorize the City Manager to execute the Memorandum of Understanding between the International Union of Operating Engineers Local No. 39 and the City of Half Moon Bay for the period of July 1, 2026, through June 30, 2030, and Approve the Applicable Salary Schedules.

FISCAL IMPACT:

The proposed cost of living and additional variable cost of benefits based on eligibility increases in the four-year agreement will increase costs by approximately $143,318 for FY 2026-2027 and by an estimated total of $510,032 over the four-year agreement. The fiscal year 2026-2027 budget will be amended by $143,318.

An additional accrued leave cash-out opportunity may accelerate the timing of costs but is expected to be cost neutral overall.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Memorandum of Understanding between the City and the International Union of Operating Engineers Local No. 39 expired on June 30, 2026. Local 39 represents seventeen full-time equivalent positions in technical and clerical classifications.

During negotiations, the City focused on developing a comprehensive compensation and benefits structure that better aligns with comparable agencies. This alignment supports recruitment and retention, which in turn helps ensure the City can continue providing quality 353
services to the community. The City pursued these goals while remaining mindful of long-term fiscal sustainability. The agreement reached with Local 39 reflects these priorities.

DISCUSSION:

The City and Local 39 began negotiations prior to the expiration of the previous agreement and met through several bargaining sessions. As proposals were developed and evaluated, the City’s management and negotiating teams reviewed compensation and benefit structures offered by comparable agencies within San Mateo County. This comparison helped inform the City’s proposals and assess the overall competitiveness of the tentative agreement. The parties ultimately reached a tentative agreement, which has since been ratified by the Local 39 membership.

The principal changes from the prior Memorandum of Understanding are summarized below:

Summary of Changes
Term Four-year agreement from July 1, 2026, through June 30, 2030.

Union
Recognition
Updates the bargaining unit to include the Assistant Planner, Maintenance Assistant, and Payroll Technician classifications.

Salary
Provides phased salary increases over the four-year term: 5% in Year 1, 3.5% in Year 2, and 3.25% in each of Years 3 and 4, along with a one-time $2,500 payment in Year 1.

Uniforms Increases the annual uniform allowance to $265.

Standby Pay Increases standby pay to $5.00 per hour on regular workdays and $5.25 per hour on non-regular workdays, up from $3.50 and $3.75, respectively.

Service
Recognition Expands service recognition eligibility to all Local 39 employees.

Shift
Differential
Increases the weekend shift differential to 3.5% for eligible employees working eligible weekend hours, excluding overtime hours.

Medical
Insurance
Establishes a two-tier health benefit structure. Employees hired on or after July 1, 2026, receive a City contribution up to the applicable Kaiser premium, while employees hired before July 1, 2026, retain their existing health benefit provisions, with the ability to permanently opt into the new tier. 354
Holidays Adds Juneteenth as a recognized City holiday.

Staff is also evaluating an additional annual leave cash-out opportunity for Local 39 employees, generally consistent with the structure proposed for RMT but adjusted to reflect Local 39 leave accrual rates. Final parameters remain under review. Staff requests authorization for the City Manager to incorporate such a provision into the final MOU, as it does not materially increase the overall fiscal impact approved by the City Council.

The successor Memorandum of Understanding also includes language revisions for legal compliance, consistency, and clarity. A complete redline of all changes is included as Attachment 2 and remains subject to final review and execution by the parties.

Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Memorandum of Understanding for the period of July 1, 2026, through June 30, 2030. Staff also requests authorization for the City Manager to make minor administrative revisions prior to execution, provided those revisions do not materially alter the terms approved by the City Council.

ATTACHMENT:

Resolution
355
RESOLUTION NO. C-2026-

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

CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF

HALF MOON BAY AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS STATIONARY LOCAL NO. 39 AND APPROVING THE APPLICABLE SALARY SCHEDULE FOR THE PERIOD OF JULY 1, 2026, THROUGH JUNE 30, 2030
WHEREAS, the Memorandum of Understanding between the City of Half Moon Bay and the International Union of Operating Engineers Stationary Local No. 39 (“Local 39”) expired on June 30, 2026; and
WHEREAS, the City and Local 39 met and conferred in good faith and reached a tentative agreement for a successor Memorandum of Understanding for the period of July 1, 2026, through June 30, 2030; and
WHEREAS, the successor Memorandum of Understanding establishes updated compensation, benefits, and employment provisions intended to support employee recruitment and retention while maintaining fiscal sustainability; and WHEREAS, implementation of the successor Memorandum of Understanding requires approval of the corresponding salary schedule for classifications represented by Local 39; and WHEREAS, the City Council has reviewed the proposed Memorandum of Understanding and finds that its approval is in the best interests of the City and its employees.

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

1. Approves the Memorandum of Understanding between the City of Half Moon Bay and the International Union of Operating Engineers Stationary Local No. 39 for the period of July 1, 2026, through June 30, 2030, substantially in the form attached as Exhibit A.

2. Approves the salary schedule applicable to classifications represented by Local 39, attached as Exhibit B, which shall become effective upon execution of the Memorandum of Understanding by both parties and shall apply as provided in the Memorandum of Understanding.

3. Authorizes the City Manager to execute the Memorandum of Understanding and make minor administrative or clarifying revisions that do not materially alter the terms approved by the City Council.
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I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18th day of August 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
357

1 MEMORANDUM OF UNDERSTANDING
between

CITY OF HALF MOON BAY
and

INTERNATIONAL UNION OF OPERATING ENGINEERS
STATIONARY LOCAL 39, AFL-CIO
July 1, 2026 – June 30, 2030
358

TABLE OF CONTENTS
Section Page No.

Memorandum of Understanding 1.1 5
Union Recognition 2.1 5
Pay and Allowances 3 6
Salary 3.1 6
Bilingual Pay 3.2 6
Notary Public Services Pay 3.3 7
Specialized License Pay 3.4 7
Salary on Promotion 3.5 7
Salary for Out of Class Work 3.6 7
Overtime Meal Allowance 3.7 8
Other Pay & Reimbursements 4
Uniforms 4.1 8
Standby Pay 4.2 9
Vacation & Compensatory Leave Payoff 4.3 9
Sick Leave Payoff 4.4 9
Personal Property Reimbursement 4.5 9
Reimbursement for Use of Technology 4.6 10
Service Recognition 4.7 10
Shift Differential 4.8 10
Mileage and Travel Reimbursement 5
Mileage 5.1 11
Lodging 5.2 11
Meals 5.3 11
Educational and Training Incentive Program 6
Tuition Reimbursement Program 6.1 11
Work Schedules and Overtime 7
Work Schedules 7.1 12
Overtime 7.2 14
FLSA Savings Clause 7.3 15
Call Back 7.4 15
Meals & Rest Periods 7.5 15
Alternate Work Schedules 7.6 16
Health & Welfare 8
Medical, Dental Vision Insurance Eligibility 8.1.a 17
Medical Insurance Benefits 8.1.b 17
Cafeteria Plan 8.1.c 17
Flexible Spending Accounts 8.1.d 19
Life Insurance and AD & D Coverage 8.2 19
Disability Coverage 8.3 19
Deferred Compensation 8.4 20
Retirement 8.5 20
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Section Page No.

Holidays 9
Holidays 9.1 21
Leaves 10
Vacation Leave 10.1 23
Vacation Leave Accrual 10.1.a 23
Vacation Leave Accumulation 10.1.b 23
Vacation Leave Scheduling 10.1.c 23
Sick Leave 10.2 24
Industrial Accident Leave 10.3 24
Bereavement leave 10.4 25
Family & Medical Leave 10.5 25
Jury Duty 10.6 25
Military Leave 10.7 26
Court Leave 10.8 26
Grievance Procedure 11
Purpose 11.1 26
Definition 11.2 26
Standing 11.3 26
Time Limits 11.4 27
Procedure 11.5 27
Step I 11.5 27
Step II 11.5 27
Step III 11.5 27
Equipment Provided 12
Tools 12.1 28
No Discrimination 13
No Discrimination 13.1 28
Safety 14
Safe Employment 14.1 29
Lunch & Restroom Facilities 14.2 29
Safety Committee 14.3 29
Disciplinary Actions 15
Definition 15.1 29
Disciplinary Procedure 15.2 30
Personnel Rules 16
Personnel Rules 16.1 32
Contracting Out 17
Contracting Out 17.1 32
Union Security 18
Union Membership 18.1 32
Union Rights 19
Work Access 19.1 34
360

Section Page No.

Bulletin Board 19.2 34
Meeting Space 19.3 34
Shop Stewards 19.4 34
Dues Check-off 19.5 34
Release Time 19.6 35
Terms & Conditions 20
Prevailing Rights 20.1 35
Separability 20.2 35
Implementation 20.3 36
Contract Term 20.4 36
City Rights 20.5 36
Layoff Notification & Severance 21
Layoff Notification & Severance 21.1 36

Signature Page 39
EXHIBIT A – Salary Schedule 40

361

5 SECTION 1

MEMORANDUM OF UNDERSTANDING

1.1 Memorandum of Understanding
This Memorandum of Understanding is entered into by and between the City of Half Moon Bay hereinafter called “City” and the International Union of Operating Engineers, Stationary Local No. 39, hereinafter called “Union.”
The parties have met and conferred in good faith regarding wages, hours, and other terms and conditions of employment for the employees in said representation Unit, and have freely exchanged information, opinions, and proposals and have reached agreement on all matters set forth in this Agreement relating to the employment conditions and employer-employee relations of such employees.

This Memorandum of Understanding shall be presented to the City Council of the City of Half Moon Bay as the joint recommendation of the undersigned parties for salary and employee benefit adjustments for the period commencing July 1, 2026 to June 30, 2030.

The parties agree that negotiations for the MOU beginning July 1, 2030 shall commence no later than three (3) months prior to the expiration of this current Agreement.

SECTION 2

RECOGNITION

2.1 Union Recognition
The City recognizes the International Union of Operating Engineers Stationary Local 39, AFL-CIO, hereinafter referred to as the “Union,” as the exclusive bargaining agent for all employees working in the following classifications:

Accounting Technician
Administrative Analyst
Administrative Assistant
Assistant Planner
Community Preservation Specialist
Deputy City Clerk
Maintenance Assistant
Maintenance Worker I/II
Office Assistant I/II
Payroll Technician
Permit Technician
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6 Recreation Leader I/II/III
Senior Accounting Technician
Senior Maintenance Worker

The Union and its authorized representatives have the exclusive right to represent bargaining Unit members on all matters within the scope of representation.

SECTION 3

PAY AND ALLOWANCES

3.1 Salary
Effective the first full pay period on or after July 1, 2026, the base wages for represented classifications shall be increased by a cost-of-living adjustment of five percent (5.0%). In addition, there shall be a one-time, non-pensionable lump sum payment of $2,500 to each bargaining unit member at the time of ratification and following the Council’s approval of a successor MOU.

Effective the first full pay period on or after July 1, 2027, the base wages for represented classifications shall be increased by a cost of living adjustment of three-and-a-half percent (3.50%).

Effective the first full pay period on or after July 1, 2028, the base wages for represented classifications shall be increased by a cost of living adjustment of three and a quarter percent (3.25%).

Effective the first full pay period on or after July 1, 2029, the base wages for represented classifications shall be increased by a cost of living adjustment of three and a quarter percent (3.25%).

3.2 Bilingual Pay
Effective July 1, 2018, members of the Unit who have the ability to speak and understand Spanish, as determined by a standard academic test of proficiency, shall receive the following bilingual pay if the City Manager determines that the member’s bilingual skills assist the City in carrying out its organizational mission:
 Two and a half percent (2.5%) per month of employee’s base salary for employees certified in oral skills;
 Two and a half percent (2.5%) per month of employee’s base salary for employees certified in written skills;
363

7  Two and a half percent (2.5%) per month of employee’s base salary for employees certified in simultaneous translation skills.

Bilingual skill shall not be a condition of employment except for employees who are hired specifically with that requirement. If an employee is hired under this provision, that requirement shall be included in the initial appointment letter and the employee shall receive the applicable bilingual pay.

3.3 Notary Public Services Pay
Effective July 1, 2005, the City will pay two and one-half percent (2.5%) wage differential to a Local 39 employee who is assigned in writing and is required to perform notary functions for the City.

3.4 Specialized License Pay
Effective the first full pay period following adoption of this Agreement by the City Council, the City will pay two and one-half percent (2.5%) wage differential to a Local 39 employee who (i) holds one of the following licenses and (ii) is assigned in writing and is required to perform functions requiring such a license for the City:
 Arborist
 Pesticide
 Playground Inspector
 Backflow
This list is not intended to be exhaustive. Additional certifications may be added upon mutual agreement between the City and Local 39.

3.5 Salary on Promotion
Any Bargaining Unit employee who is promoted to a position having a higher salary range shall receive the minimum step in the new range that provides for no less than a five percent (5%) increase.

If an employee is eligible for a merit step increase on the same date the promotion is to be effective, the step increase shall be granted before the promotion.

3.6 Salary for Out of Class Work
Any employee, who is assigned the full scope of duties of a position having a higher salary range, shall receive acting pay equal to the minimum step in the new range that provides at least a five percent (5%) increase during the entire period of such assignment. 364

8 Acting pay shall commence from hour one and the employee shall be assigned in writing to perform the full scope of duties as specified in the job description.

Out of class work shall also include assignments that occur when an employee, because of turnover in supervisory or management personnel, performs major duties normally performed in those higher-level positions. Employees who are assigned out of class work in writing shall receive a five percent (5%) premium pay for the length of the out of class assignment, which may run while the applicable position(s) are vacant and for up to ten (10) working days’ time after they are filled.

3.7 Overtime Meal Allowance
The City agrees to reimburse a per diem amount of Twenty- five Dollars ($26.00) for a meal, for any employee who works four (4) or more consecutive hours of overtime after completing a regular shift.

SECTION 4

OTHER PAY AND REIMBURSEMENTS

4.1 Uniforms
The City shall furnish uniforms and/or clothing required by the City to be worn or used by Bargaining Unit employees Including but not limited to: Maintenance Workers, Community Preservation Specialist and Recreation Leaders. Bargaining unit members in the Maintenance Worker classifications shall be provided an allowance for the purpose of uniform maintenance of two hundred fifty dollars ($265.00) per year to be paid the first pay period in July.

The City will issue the following uniforms to Maintenance Workers upon hire and every July 1:
 Ten short-sleeve T Shirts with City logo
 Six baseball style hats with City logo
 One hooded sweatshirt with City logo
 One Winter jacket with City logo
 Three hundred ($300) for the purchase of workpants
 Three hundred dollars ($300) for work boots
 Six hundred dollars ($600) for paving and spraying work boots that will stay at work
365

9 Employees required by the City to wear steel toed and/or ankle supported safety shoes/boots, or to work with asphalt as a usual and regular job duty shall receive a shoe/boot allowance.

All classifications: All logos and patches will be furnished and attached by the City.

Rain wear and safety gear will be furnished by the City as needed.

4.2 Standby Pay
Any employee, who, when off duty, is assigned by the department to be on restricted standby, shall be eligible for stand-by pay as follows:

1. Five Dollars ($5.00) for each hour on regular work days and;

2. Five Dollars and Twenty-Five Cents ($5.25) for each hour on days off, for the entire period of such an assignment.

The City will provide three (3) days’ notice of standby assignment, except in cases of emergency in which City property may be damaged, there is a danger to public health and/or safety, or an unforeseen public hazard exists.

4.3 Vacation and Compensatory Leave Payoff
When an employee is separated from service after six (6) months of employment, they shall be entitled to lump sum payment of any accrued and unused vacation leave or compensatory time at the time of separation; minus any mandatory deductions and benefit payments the employee owes the City.

Upon separation from City employment, employees shall be entitled to payment of any accrued and unused compensatory time off in accordance with applicable law.

In addition to the payment available upon separation, employees shall have the option to cash out up to ninety six (96) hours of accrued vacation or CTO in November of each year with the approval of the City Manager. In order to be eligible for this cash out, the employee must have at least forty (40) hours of accrued vacation time remaining in their vacation bank after the cash out.

4.4 Sick Leave Payoff
The following sick leave reimbursement plan shall be available to all represented classifications:
366

10 Payoff of earned but unused sick leave upon cessation of employment with the City, as follows: Twenty five percent (25%) of all unused sick leave, not to exceed Twenty Five Hundred Dollars ($2,500).

Employment duration must equal or exceed five (5) years with the City of Half Moon Bay.

4.5 Personal Property Reimbursement
The City shall provide reimbursement to employees for the cost of repairing or replacing the property or prostheses of an employee, lost or damaged while in the course and scope of employment, without fault to the employee.

4.6 Reimbursement for Use of Technology
If an employee is required by his or her supervisor to use his or her personal cell phone, tablets, laptops or other technology in the course of City business, the City will provide a stipend of one hundred dollars ($100) per month.

4.7 Service Recognition
The City shall make service recognition awards as follows:
 Employees with at least seven years and less than fourteen years of full-time Half Moon Bay City-service shall receive an annual payment of $700 in the pay period following their anniversary date.
 Employees with at least fourteen years and less than twenty-one years of full-time Half Moon Bay City-service shall receive an annual payment of $1400 in the pay period following their anniversary date.
 Employees with at least twenty-one years full-time Half Moon Bay City-service shall receive an annual payment of $2100 in the pay period following their anniversary date.

The cost of the Service Recognition Program shall be considered part of the total compensation provided to classifications in the bargaining unit and will be incorporated when the City contemplates future adjustments in bargaining unit compensation. 367

11 4.8 Shift Differential
Maintenance Workers assigned to work a weekend shift shall be compensated for a weekend differential at three- and one-half percent (3.50%) above the worker’s base rate of pay for all non-overtime hours worked during such shift.

Senior Maintenance Worker
Maintenance Worker I/II
The weekend shift differential shall not apply to overtime hours worked on a weekend.

The weekend shift differential shall not apply to employees in classifications for which weekend work is a regular and expected component of the position.

SECTION 5

MILEAGE AND TRAVEL REIMBURSEMENT

5.1 Mileage
Bargaining Unit employees shall be entitled to reimbursement for the actual miles traveled on City business in the employee’s private vehicle at the current rate established by the Internal Revenue Service.

Private vehicles used for City business shall comply with applicable California Vehicle Code Sections pertaining to “insurance or proof of ability to respond to damages.”

5.2 Lodging
Bargaining Unit employees shall be entitled to reimbursement for the actual cost of lodging when away from the City overnight on official City business. Receipts may be required for payment of the claim.

5.3 Meals
Bargaining Unit employees shall be entitled to reimbursement for necessary meal expenses incurred while on official City business. Per diem rates will be based on the U.S.

General Services Administration (GSA) reimbursement rates applicable to location in which City business is being conducted. For example, 2026 rates for business being conducted in Half Moon Bay are $92 per day - $23 breakfast/$26 lunch/$38 dinner; $5 incidentals.

368

12 SECTION 6

EDUCATIONAL AND TRAINING INCENTIVE PROGRAM

6.1 Tuition Reimbursement Program
The City shall reimburse employees up to One Thousand Five Hundred Dollars each calendar year ($1,500) for job-related educational classes, certifications, professional memberships, conferences, workshops, or seminars, conditioned upon prior approval of the City Manager or their designee. Eligible classes, certifications, professional memberships, workshops, conferences, and seminars must:
 Relate to and be beneficial for the work of the employee’s current City position or occupation; or
 Satisfy a continuing education requirement of the employee’s current City position; or
 Prepare the employee for advancement/promotion to positions of greater responsibility within the City.

Under this section, employees may also request reimbursement of payments made towards student loans.

For employees who are seeking to attend educational classes, certifications, professional memberships, conferences, workshops, or seminars that directly relate to satisfying the minimum qualifications or preparing for advancement/promotion to positions of greater responsibility within the City, and subject to the recommendation of the Administrative Services Director and advanced approval by the City Manager, they may seek approval for an additional reimbursement of $1,500 per calendar year if they have exhausted the annual allotment of $1,500 under this section.

The City does not make any representations as to the tax treatment of this benefit.

SECTION 7

WORK SCHEDULES AND OVERTIME

7.1 Work Schedules
a. The standard work week for all Bargaining Unit employees shall consist of forty (40) hours of work during five (5) consecutive workdays. b. The standard workday shall consist of eight (8) consecutive hours of work that may be interrupted by a meal period.
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13 c. Work schedules showing employees’ shifts, workdays, and hours shall be posted on employee bulletin boards.
d. The City Manager will meet with the Union to discuss alternate schedules upon request.
e. City Hall Closure:
2026-2027
City Hall will be closed December 28-30, 2026. City employees may use accrued vacation, compensatory time or take unpaid time off during the unpaid closure days. Employees without accrued vacation or compensatory time off will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2026 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2027. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2027-2028
City Hall will be closed December 27-29, 2027. City employees may use accrued vacation, compensatory time or take unpaid time off during the unpaid closure days. Employees without accrued vacation or compensatory time off will take unpaid leave.

Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

14 The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2028-2029
City Hall will be closed December 27-28, 2028. City employees may use accrued vacation, compensatory time or take unpaid time off during the unpaid closure days. Employees without accrued vacation or compensatory time off will take unpaid leave.

Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2028 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two
(2) floating holidays before March 1, 2029. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2029-2030
City Hall will be closed December 26-28, 2029. City employees may use accrued vacation, compensatory time or take unpaid time off during the unpaid closure days. Employees without accrued vacation or compensatory time off will take unpaid leave.

Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2029 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two
(2) floating holidays before March 1, 2030. The floating holidays granted under this provision shall not carry over (except as 371

15 provided for in the previous sentence) and shall have no cash value.

7.2 Overtime
a. Any time worked in excess of the employee’s standard forty (40) hour workweek shall be considered overtime work and shall be compensated at the overtime pay rate of one and one-half (1½) times the employee’s regular hourly rate of pay. In addition, any employee that works a holiday will receive two (2) times their hourly rate of pay. The accumulation of compensatory time off (CTO) shall not exceed one hundred and ninety two (192) hours.
b. Any employee as of July 1, 2013 that has over one hundred (100) hours of CTO will be automatically paid any overtime hours each pay period until the hours are reduced to, at or below one hundred (100) hours.
c. Employee will have the option to be paid their overtime hours during each pay period overtime is worked or have them deposited into the CTO bank. d. The City shall notify employees of the need for overtime work as far in advance as possible.
e. The City shall attempt to distribute overtime work equitably among Bargaining Unit employees.
f. Except in emergency situations, employees will not be required to work in excess of sixteen (16) hours in any twenty-four (24) hour period.

7.3 FLSA Savings Clause
The City and the Union believe that this Memorandum of Understanding, and all of the City’s related pay practices, comport with the requirements of the Fair Labor Standards Act (FLSA). If any provision of this MOU is found to conflict with the FLSA, that provision shall be interpreted and applied in a manner consistent with applicable law. The parties shall meet and confer, as necessary, regarding the affected provision. All remaining provisions of the MOU shall remain in full force and effect. 372

16 7.4 Call Back
a. An employee who has left the work site and is called back to work outside of and not continuous with regularly scheduled hours, shall be paid a minimum of three (3) hours plus any time worked in excess of three (3) hours at the overtime rate.

Any additional call back within the original call back period shall not result in an additional three (3) hour minimum.
b. Time worked for which an employee is entitled to compensation shall include reasonable travel time to and from an employee’s residence not to exceed one (1) hour total travel time.

7.5 Meals and Rest Periods
a. When working a shift scheduled to be six (6) or more hours, an employee shall be granted a meal period of at least thirty (30) but not more than sixty (60) minutes, at or near the mid-point of the shift.
b. After each four (4) hour segment of overtime work, an employee shall be granted a thirty (30) minute and duty free meal period.
c. Employees shall be entitled to a paid rest period of fifteen (15) minutes during each full four (4) hour segment of work.

7.6 Alternate Work Schedules
A. PURPOSE
The purpose of this Alternative Work Schedule (AWS) (reference Administrative Policy #_2.3) is to provide schedule alternatives beyond the traditional five (5) days per week work schedule, provide flexibility for employees while maintaining excellent service levels to the community.

B. ELIGIBILITY
All alternative schedules require department head approval. Some positions that specifically require close supervision might be exempt from certain types of AWS and must be coordinated with their supervisor. Certain positions may be exempt from consideration to ensure regular level of operations and hours.

Employees must maintain a satisfactory and above rating on their annual performance evaluation to remain eligible for AWS. Those employees who require close supervision, have attendance or other performance issues should not be granted AWS privilege. 373

17 C. ALTERNATIVE WORK SCHEDULE OPTIONS
The City offers the following options for AWS. Each schedule is an individual option, not to be combined or run simultaneously in any way.
9/80 Schedule- an employee works 80-hours in nine, rather than ten working days per twoweek period. The employee works eight 9-hour days, and one 8-hour day each two-week period and has one day off every other week. The eight-hour day and the off day must fall on the same day of the week (e.g. eight (8) hour Friday the first week and off the next Friday).

The workweek begins 4 hours into the eight-hour day maintaining 40-hour workweeks.

Overtime is calculated based on this workweek.
4/10 Schedule- an employee works 80-hours in eight, rather than ten, working days per twoweek period. Employee works eight 10-hour days with two business days off each two-week period. Four (4) business days must be worked each week. The off day must fall on the same day of the week (e.g. every Monday, without change each week).

Alternative start / end times: - the workday begins and/or ends earlier or later than the traditional 8:30 a.m. – 5:00 p.m. schedule, with the employee at work for a total of 40-hours per week.

Any AWS may begin as early as 6 A.M. and may end no later than 8 P.M., unless otherwise authorized by the City Manager.

SECTION 8

HEALTH AND WELFARE

8.1 Medical, Dental and Vision Insurance
a. Eligibility
All regular employees of the City eligible for PERS medical membership shall be eligible to enroll in the health and welfare benefits provided by this Section and currently authorized for this bargaining unit. Eligible dependents of a regular employee eligible for PERS medical membership shall be permitted to participate in any health and welfare benefit provided in this Section to the extent authorized by the benefit plan. b. Medical Insurance Benefits
During the term of the MOU, the City agrees to contract with the California Public Employees Retirement System (CalPERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits. 374

18 The City will pay the minimum employer contribution required under PEMHCA for each eligible active employee towards the purchase of medical insurance. c. Cafeteria Plan
For the duration of the MOU, the City agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.

Health Benefit Structure – Employees Hired On or After July 1, 2026 Employees hired on or after July 1, 2026 shall participate in the health benefit structure described below. Employees hired on or before June 30, 2026 shall continue to receive the health benefit structure in effect prior to July 1, 2026, unless they irrevocably elect to participate in the post-July 1, 2026 health benefit structure.

For calendar year 2026, the City agrees to provide the following maximum monthly contribution toward medical insurance premiums for employees eligible to participate in City- sponsored health and welfare benefits. Based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), the City shall contribute up to the following maximum of for each category for regular fulltime employees:
• Subscriber - $1,168.86
• Subscriber + 1 - $2,337.72
• Subscriber +2 - $3,039.04
For example, an employee with no dependents shall be eligible for City contributions at the Subscriber category. An employee with one dependent shall be eligible for City contributions at the Subscriber + 1 category. An employee with family coverage shall be eligible for City contributions at the Subscriber + 2 category.

The City's contribution shall not exceed the actual cost of the selected medical plan. Any unused portion of the City's contribution shall not be paid to the employee as cash or any other form of compensation.

Employees receiving City contributions to health coverage shall not be eligible for cash back or a difference in premiums of any kind. Employees who decline City-sponsored medical coverage shall not be eligible to receive cash in lieu of benefits.

19 benefits using the CalPERS Kaiser premium rates set for each corresponding calendar year, subject to a cap of 7.5% in annual increases borne by the City. Any CalPERS Kaiser premium increases exceeding the 7.5% cap shall be borne solely by the employee.

Employees who enroll in City-sponsored health and welfare benefits will receive the CalPERS Kaiser premium rates as the maximum City contributions based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), subject to the 7.5% annual increase provision as set forth above, The City’s agreement to absorb annual CalPERS Kaiser premium rate increases shall be limited to the 2026 – 2030 MOU, and this provision shall automatically sunset upon the expiration of the MOU on June 30, 2030.

The City's contribution for part-time employees shall be pro-rated based on their FTE.

Grandfathered Health Benefit – Employees Hired on or Before June 30, 2026 Employees hired on or before June 30, 2026 who elect to remain under the pre-July 1, 2026 health benefit structure shall receive a monthly cafeteria allowance of $1,900.

Employees enrolled in medical coverage may receive any unused portion of the allowance as taxable cash. Employees who waive City-sponsored health and welfare benefits shall receive the full $1,900 monthly allowance as taxable cash in lieu of benefits.

Election to Participate in New Health Structure
Employees hired on or before June 30, 2026 may elect to participate in the health benefit structure applicable to employees hired on or after July 1, 2026. Such election shall be irrevocable. Employees who make this election shall thereafter be subject to all provisions applicable to the post-July 1, 2026 health benefit structure and may not return to the preJuly 1, 2026 health benefit structure.

Dental / Vision
In addition, the City agrees to provide dental and vision insurance up to the family level coverage for regular full-time employees. The City’s contribution for part-time employees shall be pro-rated based on their FTE.

Any and all additional sums, over and above the amounts stated above that are required to purchase the employee selected Health and Welfare benefit, shall be paid by the employee through payroll deduction. Cafeteria Plan Allowance in excess of actual premiums is to be paid to the employee. A City payroll deduction authorization form shall be completed.

For particulars of coverage, see appropriate pamphlets and contracts. 376

20 d. Flexible Spending Accounts
As soon as administratively possible following ratification of this agreement by Local 39 members and adoption by the City Council, but no later than January 1, 2019, the City will offer a flexible spending account (FSA) program to employees. Employees may elect to contribute pre-tax dollars towards their FSAs for approved uses under such plan(s).

FSA contributions shall not exceed IRS allowable limits.

8.2 Life Insurance and AD & D Coverage
The City shall provide Life Insurance and Accidental Death and Dismemberment Coverage in the amount of Seventy-five Thousand Dollars ($75,000) for those employees covered by this MOU.

8.3 Disability Coverage
The City shall provide long-term disability coverage of sixty seven percent (67%) of monthly earnings to a maximum benefit of Six Thousand Dollars ($6,000) after a sixty (60) day elimination period.

8.4 Deferred Compensation
Employees shall be eligible to participate in the City’s voluntary deferred compensation program (457 Plan). The plan shall be administered by a third party at no cost to the City.

8.5 Retirement
a. The City will provide the following retirement benefits to employees who do not meet the definition of “new member” as set forth in Government Code Section 7522.04(f):
377

21 Effective July 1, 2015, Employees will be required to pay seven percent (7%) of the member contribution.

1. 2% @ 55 Retirement Option.

2. One year final compensation.

3. Unused Sick Leave Conversion for Retirement Service Credit – Retiring employees, defined as employees who request retirement payments from PERS within 120 days from separation from service, may convert unused sick leave to service credits to the maximum allowed by CalPERS. This provision to convert sick leave to service credits is at the option of the employee and, if so selected, is in-lieu of any other options available to convert sick leave to cash upon separation that the Memorandum of Understanding may provide.
b. Retirement benefits of employees who on or after January 1, 2013 became members of CalPERS or a retirement system that has reciprocity with CalPERS shall conform to the requirements of the California Public Employees’ Pension Reform Act of 2013, Gov. Code § 7522 et seq., as may be amended. c. The City will provide the following retirement benefits to all employees:

1. 1959 Survivor Benefit – 3rd Level.

2. Military Service Credit (Statutes of 1976) – The employee, at the employee’s expense, may purchase Military Service Credits.

3. Pre-retirement Option 2W Death Benefit.

SECTION 9

HOLIDAYS

9.1 Holidays
All full-time Bargaining Unit employees shall be entitled to the following eight (8) hour holidays with pay:

New Year’s Day
One day prior to or following New Year’s Day
Martin Luther King Jr. Day
President’s Day (Washington’s Birthday)
378

22 Farmworker Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
One day prior to or following Christmas Day
Floating Holiday - 8 hours of vacation added July 1st
Part-time employees shall receive holiday pay equivalent to their regularly scheduled hours on the day on which the holiday is observed (for example, if an employee is regularly scheduled to work six (6) hours on Mondays, they would receive six hours of holiday pay for any holidays that are observed on a Monday).

When a day recognized as a holiday falls on a Sunday, the holiday shall be observed on the following Monday. When a day recognized as a holiday falls on a Saturday, the holiday shall be observed on the preceding Friday.

Employees whose regularly scheduled days off fall on any City observed holiday shall be entitled to equivalent time off or pay in lieu of equivalent time off.

For Christmas and New Year’s Holidays, the following schedule shall be used to determine the actual days off:

23 SECTION 10
LEAVES

10.1 Vacation Leave
a. Accrual

All full-time Bargaining Unit employees are entitled to paid vacation time off which shall accrue at the following rate:
0 through 4 years 8 hours per month
5 through 10 years 10 hours per month
11 through 15 years 12 hours per month
16 through 20 years 14 hours per month
21+ years 15.3334 hours per month
The accrual rate for part-time employees shall be pro-rated based on their FTE. b. Accumulation
Employees may accumulate up to, but not more than, two (2) years vacation credit at the current accrual level. When an employee reaches seventy-five percent (75%) of the two (2) year limit, they shall be required to schedule vacation time off. If such vacation leave is denied by the City, the employee shall be paid for vacation time earned in excess of the limit.

No vacation credit shall accrue prior to the completion of six (6) months of service.

At the conclusion of six (6) months service the employee shall be credited with six (6) workdays or forty-eight (48) hours of vacation credit. c. Scheduling
Vacation time off may only be taken with the approval of the employee’s immediate supervisor.

10.2 Sick Leave
All regular full-time Bargaining Unit employees shall accrue eight (8) hours of sick leave with pay for each month of service. The accrual rate for part-time employees shall be pro-rated based on their FTE.

Sick Leave may be applied to:
380

24 a. Absence necessitated by employee’s personal illness. b. Medical and dental appointments.

All conditions and restrictions that govern employee use of sick leave shall also apply to the use by an employee to attend to an illness of their child, mother, father, mother-inlaw, father-in-law, spouse, domestic partner, domestic partner’s mother, father or child; and any dependent living in the same household of the employee.

Sick Leave Incentive: Employees shall be credited with sixteen (16) hours vacation leave, contingent upon non-usage of accumulated sick leave (i.e. employee authorized eight (8) additional vacation hours per six (6) months provided sick leave usage does not exceed sixteen (16) hours for that same time period.)

10.3 Industrial Accident Leave
An employee who has suffered an illness or injury arising out of and in the course of their employment, as defined by the Workers' Compensation laws of the State of California and is receiving temporary disability indemnity payments shall be entitled to industrial accident leave while so disabled without loss of compensation for a period not to exceed seventy-five (75) calendar days.

During the period the employee is paid by the City, the employee shall endorse to the City any temporary disability indemnity benefit payments received as a result of Workers' Compensation insurance coverage. The City will withhold payment of all compensation and benefits provided by this section until it is determined whether the illness or injury is accepted. If the employee's disability caused by illness or injury arising out of and in the course of the employee's employment extends beyond seventy-five (75) calendar days as described above, the employee may integrate their unused sick leave, vacation leave, and compensatory time accruals with the Workers' Compensation payments, provided that the sum of all Workers' Compensation Temporary Disability Indemnity benefits and paid leave do not exceed the employee's regular rate of pay for said period.

Once sick leave is exhausted, the employee may request an unpaid leave of absence. Such request must be in writing and must include a doctor’s estimated date of return of full duty.

10.4 Bereavement Leave
The maximum period of bereavement leave with pay granted to any employee, whether full-time or part-time, for each death in their immediate family (immediate family includes and is limited to parents, grandparents, children, grandchildren, and siblings of the employee, and/or spouse/registered domestic partner of the employee) shall be 381

25 three (3) working days. Bereavement leave with pay granted to an employee for all deaths in their immediate family shall not exceed five (5) working days during any twelve (12) month period except when allowed by approval of the City Manager or special action of the City Council for good cause shown, except that an additional day will be granted in each case where the death takes place outside the State of California.

10.5 Family and Medical Leave
The City will comply with applicable laws regarding family and medical leave. All leaves will run concurrently with any other statutory leaves, federal and state.

10.6 Jury Duty
A regular employee summoned for attendance to any court for jury duty will promptly inform his or her supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel time).

Jury fees received by an employee, if any, will be remitted to the City within fifteen (15) working days after they are received, exclusive of any meal, expense, and/or travel reimbursements. Upon being excused from the court each day, the employee must return to work if he or she has more than four (4) hours remaining before the end of his or her workday. Jury duty leave will be considered time worked for pay and overtime calculation purposes.

10.7 Military Leave
The City shall grant military leave in accordance with the California Military Family and Medical Leave Act and Veterans Code.

10.8 Court Leave
Each employee of the City who is required, under subpoena, to take time off duty with the City, to appear as a witness, by reason of their employment with the City, before any court, arbitrator, or tribunal, shall receive their regular salary during the time of their service as a witness under subpoena, less any and all witness fees which the employee may receive. Compensation will not be paid if the employee is a party to the action and is in a position adverse to the City. Upon service of subpoena, an employee shall immediately advise their supervisor thereof, and of the time when the employee is required to appear in Court in response thereto. Notwithstanding the foregoing, participation in grievance or discipline arbitrations under Sections 11 and 15 shall not be subject to this provision.
382

26 SECTION 11

GRIEVANCE PROCEDURE

11.1 Purpose
It shall be the purpose of this procedure to resolve employee grievances in a fair and equitable manner within a reasonable period of time at the lowest level of administrative review possible.

11.2 Definition
A grievance shall mean any dispute which may arise concerning the interpretation, application, or violation of the express terms of the Memorandum of Understanding, any written rules, regulations and/or policies, City Council resolutions and/or ordinances now in effect or as may from time to time be adopted which affect the wages, hours or other conditions of employment of Bargaining Unit employees.

11.3 Standing
Any Bargaining Unit member, group of members, or the Union itself shall have standing to initiate grievances under the procedure.

11.4 Time Limits
The time limits specified herein shall be strictly observed and may be waived only by mutual agreement of the parties.

11.5 Procedure
An employee must first informally discuss the grievance with their immediate supervisor who shall respond to the employee’s concern(s) within ten (10) working days of such discussion.

All written grievances must be filed at Step I except by mutual agreement of the City and the Union.
383

27 STEP I
If the grievance is not resolved by the immediate supervisor, the aggrieved employee may, within ten (10) working days of the supervisor’s response, submit the grievance in writing to the Department Head. The written grievance shall contain a clear statement of the grievance and the remedy requested.

The Department Head shall respond in writing within ten (10) working days of the receipt of grievance.

STEP II
If the grievance remains unresolved the aggrieved may, within ten (10) working days of the receipt of the Department Head’s response, submit the grievance to the Personnel Officer for review and decision.

The Personnel Officer shall within ten (10) working days of receipt of written grievance respond in writing to the grieving party. The response shall include the reason for the decision.

STEP III
Grievances concerning the interpretation, application or violation of this Memorandum of Understanding, which remain unresolved by the Personnel Officer’s decision, may be submitted by the Union to arbitration for a decision which shall be binding on the parties.

Such referral shall be made in writing to the Personnel Officer within ten (10) working days of receipt of the Personnel Officer’s decision by the Union. The arbitrator’s decision on non-Memorandum of Understanding grievances shall be an advisory recommendation to the City Council for final determination.

The binding arbitration procedure shall be as follows:

A. The arbitrator shall be selected from a list provided by the State of California Mediation and Conciliation Service.

B. Unless otherwise agreed to by both parties, expedited arbitration shall be used and shall include:

1. A requirement that the arbitrator selected renders a decision within sixty (60) calendar days of the conclusion of the hearing.

2. No court reporter unless mutually agreed to by all parties.

3. No post hearing briefs unless mutually agreed to by all parties. 384

28 C. The fees and expenses of the arbitrator and the court reporter, if mutually agreed to, shall be shared equally by both parties.

Notwithstanding the above, the cost of witnesses, court reporters and/or transcripts shall be the sole responsibilities of the party requesting same.

SECTION 12

EQUIPMENT PROVIDED

12.1 Tools
The City agrees to provide all tools, equipment and supplies reasonably necessary to Bargaining Unit employees for the performance of employment duties.

All equipment is owned by the City and it must be returned upon separation from employment.

SECTION 13

NO DISCRIMINATION

13.1 No Discrimination
The City agrees not to discriminate against any employee for their activity on behalf of, or membership in, the Union. The City and Union agree that there shall be no discrimination against any employee because of race, color, religious creed, sex, marital status, age, national origin, ancestry, physical or mental impairment, or veteran status or other protected categories as provided by State or Federal law.

SECTION 14
SAFETY

14.1 Safe Employment
The City will endeavor throughout the term of this Memorandum of Understanding to provide and maintain a safe and healthful place of employment for all Bargaining Unit members.
385

29 14.2 Lunch and Restroom Facilities
The City agrees to endeavor to provide clean and sanitary lunch and restroom facilities for Bargaining Unit employees.

14.3 Safety Committee
The City agrees to appoint a Safety Committee composed of one (1) representative of City Management, who shall serve as Chair, and one (1) representative designated by the Union.
a. The Committee shall investigate and make recommendations to the City Manager for correcting unsafe conditions and/or employment practices. b. Within a reasonable amount of time following receipt of Committee recommendations, the City Manager shall implement same or shall provide the Committee with a written response. The response shall provide the reason for the decision.
c. Committee members shall suffer no loss of pay or benefits for reasonable time spent on Committee functions.

SECTION 15

DISCIPLINARY ACTIONS

15.1 Definition
For the purposes of this Section, disciplinary action is deemed to be discharge, transfer, demotion or suspension.

15.2 Disciplinary Procedure
Discipline shall be imposed on employees of the Bargaining Unit only for just cause.

An employee whose work or conduct is of such character as to incur discipline shall first be specifically warned in writing by their supervisor. Such warning shall state the reasons underlying any intention the supervisor may have of recommending any disciplinary action. The supervisor shall give a reasonable period of advance warning to permit the employee to correct the deficiency without incurring disciplinary action. 386

30 Some employee behavior, including but not limited to acts of a violent or criminal nature may be grounds for immediate discipline and shall not require the written warning described above.

When the City seeks the imposition of any disciplinary punishment, notice of such action shall be made in writing and served in person or by Registered mail upon the employee, with a copy to the Union. The notice shall include:
a. The specific charge(s) against the employee, which shall include times, dates, and location of chargeable actions or omission;
b. The penalty proposed;
c. A statement of the employee’s right to respond, either orally or in writing, and the date of the response meeting, which shall be at least ten (10) days from the notice; d. Notice that if the employee does not submit a written request to the Personnel Officer within ten (10) days, they shall have waived the right to appeal the action.

The notice referred to in Section 15.2 shall be accompanied by copies of all materials upon which charges are based.

If the employee fails to request the opportunity to respond, the City may proceed to order the action.

If the employee requests the opportunity to respond, the response meeting shall be held as specified in the notice unless changed by mutual agreement in writing.

The response meeting shall not constitute a formal hearing, and there shall be no right to call witnesses.

An employee may be represented by a representative of their choice.

The appointing authority shall issue an order taking or determining not to take action at the conclusion of the meeting. The decision shall be put in writing and served upon the employee and the Union within five (5) days following the meeting.

An employee may file an appeal from the appointing authority’s action within ten (10) days of receipt of said decision.
387

31 The Personnel Officer shall schedule any disciplinary hearing within a reasonable time after the filing of the employee’s request, considering the availability of the advisory arbitrator and the convenience of the employee and the witnesses.

Advisory Arbitrator: The advisory arbitrator shall be selected from a list provided by the State of California Mediation and Conciliation Service or similar, mutually agreed upon agency.

Expedited Arbitration: Unless otherwise agreed to by both parties, expedited arbitration shall be used and shall include:
a. A requirement that the arbitrator selected renders a decision within sixty (60) calendar days of the conclusion of the hearing. b. No court reporter unless mutually agreed to by all parties. c. No post hearing briefs unless mutually agreed to by all parties.

Costs: The fees and expenses of the arbitrator and the court reporter, if required, shall be shared equally by both parties.

Decision: The decision of the arbitrator shall be advisory only. The arbitrator’s recommendations shall be subject to review by the City Manager in their sole discretion. The decision of the City Manager to approve or reject the arbitrator’s recommendations shall be final and constitutes the final step within the City’s administrative process.

SECTION 16

PERSONNEL RULES

16.1 Personnel Rules
Notwithstanding this MOU, the parties agree that the City may implement new personnel rules and policies, and/or an employee-relations resolution, during the term of this MOU.

Such rules and policies may only be implemented after meet and confer as appropriate under the Meyers-Milias-Brown Act. The parties agree that the agreed upon language with respect to new employee orientations, attached hereto as Exhibit B, will be included as part of the City’s personnel rules and policies as soon as administratively possible. 388

32 SECTION 17

CONTRACTING OUT

17.1 Contracting Out
Whenever the City intends to contract out work, which is normally performed by members of this Bargaining Unit, the City shall provide notice and meet and confer on impact issues if requested by the Union.

SECTION 18

UNION SECURITY

18.1 Union Membership
The parties to this Memorandum of Understanding mutually understand and agree that all members of the bargaining unit have a right to join or not join the Union.

If a bargaining unit member elects to join the Union, the employee shall provide authorization to the Union for membership dues deduction. The City shall deduct the appropriate Union dues and /or initiation fees from the employee's paycheck upon receipt of written certification from the Union that the Union has received and has on file the employee's voluntary authorization for the deduction.

A. NOTICE OF NEW EMPLOYEES AND NEW EMPLOYEE ORIENTATION

1. Employee Information
· The following provisions will apply regarding notice of new employees: The City shall provide the Union with an electronic list of the following information for new employees within thirty (30) days of hire:
a. employee's full name,
b. employee status,
c. hire date,
d. department,
e. job title,
f. hourly rate,
g. assigned work location,
389

33 h. phone number (home (if available), personal cellular (if available), and work),
i. email address, personal and work, if available, and
j. address (home and mailing).

In addition, the City agrees to provide an electronic list to the Union of the employee information above for all bargaining unit employees at least every one hundred twenty (120) days.

2. New Employee Orientation
The City shall notify new employees represented by Local 39 that Local 39 is the recognized employee organization for the employee's classification. Within thirty (30) days of hire into the Local 39 bargaining unit, the Union shall have the opportunity to make a 30- minute presentation to each new employee. The City shall notify the Union of a new hire at the earliest opportunity but no later than ten (10) calendar days in advance of the employee's start date.

The City shall provide thirty (30) minutes of City paid release time for a Local 39 Shop Steward to make a presentation on the Union's behalf to a new employee. A Shop Steward shall be selected by the Unio
390

34 SECTION 19

UNION RIGHTS

19.1 Work Access
Authorized Union Representatives will be given access to work locations during working hours to investigate or process grievances or to post bulletins.

19.2 Bulletin Board
The City will furnish reasonable bulletin board spaces for posting Union Notices.

19.3 Meeting Space
The City shall provide meeting space for Union meetings, outside of working hours, providing such space is available and that the Union complies with City rules and policies for the use of such space.

19.4 Shop Stewards
The Union shall have the right to designate shop stewards from among members of the Bargaining Unit. Stewards shall be granted a reasonable amount of release time to process grievances for Union members.

19.5 Dues Check-off
A. PAYROLL DEDUCTIONS AND PAY OVER
Upon receipt of the Union's dues deduction authorization, the City shall start payroll deduction of the dues and /or initiation fees from the employee's paycheck effective the first full pay period following receipt of the authorization. Dues deductions shall be for a specific amount. The amounts deducted shall be transmitted as soon as administratively possible to the Union to an account specified by the Union.

Upon written request from the Union, the City agrees to provide the Union with an electronic file that shows a list of names and the amount deducted for each employee for whom a deduction was made. 391

35 B. SUFFICIENCY OF EARNINGS
The employee's earnings must be sufficient after the other legal and required deductions are made to cover the amount of the dues authorization. When an employee is in a non-pay status for an entire pay period, no withholding will be made to cover the pay period from future earnings. In case of an employee who is in non-pay status during only part of the pay period, and the salary is not sufficient to cover the full withholding, no deduction shall be made. In this connection, all other legal and required deductions (including health care deductions) have priority over Union dues.

C. INDEMNIFICATION BY THE UNION
The Union shall file with the City Manager an indemnification statement wherein the Union shall indemnify, defend and hold the City harmless against any claim made and any suit initiated against the City on account of Union dues deduction or by reason of this section.

19.6 Release Time
Release time shall be allowed for bargaining preparation, bargaining, and grievance preparation and grievance hearings subject to advanced notice of time, purpose and persons to be released. Management will grant release subject to operational needs.

SECTION 20

TERMS AND CONDITIONS

20.1 Prevailing Rights
Continuance of working conditions and practices not specifically authorized by ordinances or resolution of the City Council is not guaranteed by this Memorandum of Understanding.

It is understood and agreed by the parties that this Memorandum of Understanding supersedes all previous agreements between the parties, and that upon ratification by the Half Moon Bay City Council it shall be binding and enforceable to the full extent permitted by law.

20.2 Separability
Should any Section, clause, or provision of this Memorandum of Understanding be declared illegal by final judgment of a court of competent jurisdiction, such invalidation 392

36 of such Section, clause, or provision shall not invalidate the remaining portions hereof, and such remaining portions shall remain in full force and effect for the duration of this Memorandum of Understanding. Upon such invalidation the parties agree immediately to meet and confer on substitute provision for such parts or provisions rendered or declared illegal.

20.3 Implementation
The City Council shall amend its written policies and take such other action(s) as may be necessary in order to give full force and effect to the provisions of this Memorandum of Understanding.

20.4 Contract Term
Except as may otherwise be provided, this Memorandum of Understanding shall become effective on July 1, 2026 , and shall remain in effect to and including June 30, 2030.

20.5 City Rights
The City retains the exclusive right, except as expressly stated herein, to operate and direct the affairs of the City in all of its various aspects, including, but not limited to, the right to direct the working forces; to plan, direct and control all of the operations and services of the City; to determine the processes, procedures, means and organizations by which such operations and services are to be conducted; to assign and transfer employees; to hire, promote, demote, suspend, discipline, discharge or relieve employees due to lack of work or other legitimate reasons; and to change or eliminate existing processes, procedures, equipment or facilities.

SECTION 21

LAYOFF NOTIFICATION AND SEVERANCE

21.1 Layoff Notification & Severance
The appointing authority may lay off employees or demote employees in lieu of layoff subject to the following conditions:
(a) Whenever in the judgment of the City Council it becomes necessary, in the interest of economy or because the necessity for the position or an employment involved no longer exists, the City Council may abolish any position or employment in the competitive service and lay off, demote or transfer an employee holding such 393

37 position or employment without filing written charges and without the right to appeal.
(b) Seniority shall be observed in effecting such reduction in personnel, and the order of layoff shall be in the reverse order of total cumulative time served in the City's service upon the effective date of the layoff. Layoff shall be made within classes of positions, and all provisional employees in the affected class or classes shall be laid off prior to the layoff of any probationary or regular employee. (c) Whenever seniority is equal, the seniority of the employee shall be determined first by examining total cumulative service within the affected classification and, if not determinative, then by position on the employment list. (d) Length of cumulative service is interpreted to be total time spent in the employ of the City, including all days of attendance at work, approved leaves of absence whether earned or specially authorized, and time served on military leave of absence but shall not include unauthorized absences, time spent between employment with the City, suspensions, layoffs or any other time when the employee was not actively engaged at work.
(e) This subsection (e) will not apply to employees laid off in 2011 as a result of the City outsourcing law enforcement services to the County.

The City shall notify those employees to be laid off ten (10) calendar days prior to the effective date of any such layoff.

In the event an employee is laid off for reasons not related to contracting out for services, employees to be laid off shall receive severance pay based on the below tier upon separation from employment.
1-5 years 120 hours
5-10 years 160 hours
10+ years 200 hours
In the event an employee is laid off as a direct result of the City outsourcing services, and the employee is not offered alternate employment at the City or the entity to which services are outsourced, the City will pay the employee six (6) months of severance pay at the employee’s final City base pay rate upon separation in consideration for the employee’s release of any and all claims. A layoff will be considered directly resulting from City outsourcing if an employee is laid off from a job classification whose primary job duties have been contracted out within the previous nine (9) months of the layoff.

An employee who:
(i) declines to apply for alternate employment with the entity with whom the City contracts for services,
394

38 (ii) declines an offer of employment with a salary of at least eighty-five percent (85%) of the employee’s City base salary from the entity with whom the City contracts, or
(iii) retires within 120 days of separation
will not be eligible for severance pay.

Employees laid off from higher-ranking classifications shall have the option, if qualified, to displace employees who have less seniority in their same classifications or lower rated job classifications in the same job series. In addition, such employees shall have the option, if qualified, to demote to vacancies in equal or lower rated job classifications outside the job series. (f) If an employee is demoted in lieu of layoff, the appointing authority shall assign the employee to the pay rate in the pay range for the new classification that least reduces the employee's prevailing pay rate immediately prior to the demotion. (g) The names of persons laid off or demoted in accordance with these rules shall be entered upon a reemployment list. Such list shall be used when a vacancy arises in the same or lower class of position.
(h) Names of persons laid off shall be carried on a reemployment list for twelve (12) months, except that persons appointed to regular positions of the same level as that from which they were laid off, shall, upon such appointment, be removed from the list. Persons who refuse reemployment shall be removed from the list.

Persons reemployed in a lower class, or on a temporary basis, shall be continued on the list for the higher position for the twelve (12) month period.

395

39 AUTHORIZED SIGNATURES

INTERNATIONAL UNION OF CITY OF HALF MOON BAY

OPERATING ENGINEERS,
STATIONARY LOCAL 39
By By
Bart Florence Matthew Chidester
Business Manager City Manager
By By________________________
Jeff Gladieux Kenneth Stiles
President Interim Administrative Services Director
By By________________________
Charlie Solt Christopher Boucher, Attorney
Director of Public Employees Boucher Law
By Date
Mark E Gong
Business Representative
By
Jorge Perez Lemus
Bargaining Team Member / Maintenance Worker II
By
Joesph Butcher
Bargaining Team Member / Community Preservation Specialist

396

40 EXHIBIT A
Salary Schedule
Effective July 1, 2026

5.00% COLA
Steps
Position Class A B C D E
Assistant Planner 39-159 8,560 8,988 9,437 9,909 10,404 Deputy City Clerk* 39-160 8,160 8,568 8,996 9,446 9,918 Administrative Analyst 39-158 7,643 8,025 8,426 8,847 9,289 Community Preservation Specialist 39-158 7,643 8,025 8,426 8,847 9,289 Senior Maintenance Worker 39-280 7,625 8,006 8,406 8,826 9,267 Senior Accounting Technician* 39-150 7,246 7,608 7,988 8,387 8,806 Permit Technician 39-250 7,145 7,502 7,877 8,271 8,685
Administrative Assistant 39-155 6,825 7,166 7,524 7,900 8,295 Maintenance Worker II 39-275 6,475 6,799 7,139 7,496 7,871 Accounting Technician 39-145 6,467 6,790 7,130 7,487 7,861 Payroll Technician 39-145 6,467 6,790 7,130 7,487 7,861 Maintenance Worker I 39-255 5,741 6,028 6,329 6,645 6,977 Office Assistant II* 39-135 5,443 5,715 6,001 6,301 6,616 Maintenance Assistant 39-130 4,770 5,009 5,259 5,522 5,798 Office Assistant I* 39-130 4,770 5,009 5,259 5,522 5,798 Recreation Leader III 39-165 3,917 4,113 4,319 4,535 4,762 Recreation Leader II 39-140 3,562 3,740 3,927 4,123 4,329 Recreation Leader I 39-115 3,151 3,309 3,474 3,648 3,830 *Approved Classifications, unbudgeted
Salary Schedule
Effective July 1, 2027

3.50% COLA
Steps
Position Class A B C D E
Assistant Planner 39-159 8,860 9,303 9,768 10,256 10,769 Deputy City Clerk* 39-160 8,446 8,868 9,311 9,777 10,266 Administrative Analyst 39-158 7,911 8,307 8,722 9,158 9,616 Community Preservation Specialist 39-158 7,911 8,307 8,722 9,158 9,616 Senior Maintenance Worker 39-280 7,892 8,287 8,701 9,136 9,593 Senior Accounting Technician* 39-150 7,500 7,875 8,269 8,682 9,116 Permit Technician 39-250 7,395 7,765 8,153 8,561 8,989
Administrative Assistant 39-155 7,064 7,417 7,788 8,177 8,586 Maintenance Worker II 39-275 6,702 7,037 7,389 7,758 8,146 Accounting Technician 39-145 6,693 7,028 7,379 7,748 8,135 Payroll Technician 39-145 6,693 7,028 7,379 7,748 8,135 Maintenance Worker I 39-255 5,942 6,239 6,551 6,879 7,223 Office Assistant II* 39-135 5,634 5,916 6,212 6,523 6,849 Maintenance Assistant 39-130 4,937 5,184 5,443 5,715 6,001 Office Assistant I* 39-130 4,937 5,184 5,443 5,715 6,001 Recreation Leader III 39-165 4,054 4,257 4,470 4,694 4,929 Recreation Leader II 39-140 3,687 3,871 4,065 4,268 4,481 Recreation Leader I 39-115 3,261 3,424 3,595 3,775 3,964 *Approved Classifications, unbudgeted
397

41 Salary Schedule
Effective July 1, 2028

3.25% COLA
Steps
Position Class A B C D E
Assistant Planner 39-159 9,148 9,605 10,085 10,589 11,118 Deputy City Clerk* 39-160 8,721 9,157 9,615 10,096 10,601 Administrative Analyst 39-158 8,169 8,577 9,006 9,456 9,929 Community Preservation Specialist 39-158 8,169 8,577 9,006 9,456 9,929 Senior Maintenance Worker 39-280 8,149 8,556 8,984 9,433 9,905 Senior Accounting Technician* 39-150 7,744 8,131 8,538 8,965 9,413 Permit Technician 39-250 7,636 8,018 8,419 8,840 9,282
Administrative Assistant 39-155 7,294 7,659 8,042 8,444 8,866 Maintenance Worker II 39-275 6,920 7,266 7,629 8,010 8,411 Accounting Technician 39-145 6,911 7,257 7,620 8,001 8,401 Payroll Technician 39-145 6,911 7,257 7,620 8,001 8,401 Maintenance Worker I 39-255 6,136 6,443 6,765 7,103 7,458 Office Assistant II* 39-135 5,818 6,109 6,414 6,735 7,072 Maintenance Assistant 39-130 5,098 5,353 5,621 5,902 6,197 Office Assistant I* 39-130 5,098 5,353 5,621 5,902 6,197 Recreation Leader III 39-165 4,186 4,395 4,615 4,846 5,088 Recreation Leader II 39-140 3,807 3,997 4,197 4,407 4,627 Recreation Leader I 39-115 3,367 3,535 3,712 3,898 4,093 *Approved Classifications, unbudgeted
Salary Schedule
Effective July 1, 2029

3.25% COLA
Steps
Position Class A B C D E
Assistant Planner 39-159 9,446 9,918 10,414 10,935 11,482 Deputy City Clerk* 39-160 9,005 9,455 9,928 10,424 10,945 Administrative Analyst 39-158 8,435 8,857 9,300 9,765 10,253 Community Preservation Specialist 39-158 8,435 8,857 9,300 9,765 10,253 Senior Maintenance Worker 39-280 8,414 8,835 9,277 9,741 10,228 Senior Accounting Technician* 39-150 7,996 8,396 8,816 9,257 9,720 Permit Technician 39-250 7,885 8,279 8,693 9,128 9,584
Administrative Assistant 39-155 7,532 7,909 8,304 8,719 9,155 Maintenance Worker II 39-275 7,145 7,502 7,877 8,271 8,685 Accounting Technician 39-145 7,136 7,493 7,868 8,261 8,674 Payroll Technician 39-145 7,136 7,493 7,868 8,261 8,674 Maintenance Worker I 39-255 6,336 6,653 6,986 7,335 7,702 Office Assistant II* 39-135 6,008 6,308 6,623 6,954 7,302 Maintenance Assistant 39-130 5,264 5,527 5,803 6,093 6,398 Office Assistant I* 39-130 5,264 5,527 5,803 6,093 6,398 Recreation Leader III 39-165 4,323 4,539 4,766 5,004 5,254 Recreation Leader II 39-140 3,931 4,128 4,334 4,551 4,779 Recreation Leader I 39-115 3,477 3,651 3,834 4,026 4,227 *Approved Classifications, unbudgeted
398
Position Class A B C D E
Non-Exempt Operating Engineers Local 39
Assistant Planner 39-159 8,560 8,988 9,437 9,909 10,404 Deputy City Clerk* 39-160 8,160 8,568 8,996 9,446 9,918 Administrative Analyst 39-158 7,643 8,025 8,426 8,847 9,289 Community Preservation Specialist 39-158 7,643 8,025 8,426 8,847 9,289 Senior Maintenance Worker 39-280 7,625 8,006 8,406 8,826 9,267 Senior Accounting Technician* 39-150 7,246 7,608 7,988 8,387 8,806 Permit Technician 39-250 7,145 7,502 7,877 8,271 8,685
Administrative Assistant 39-155 6,825 7,166 7,524 7,900 8,295 Maintenance Worker II 39-275 6,475 6,799 7,139 7,496 7,871 Accounting Technician 39-145 6,467 6,790 7,130 7,487 7,861 Payroll Technician 39-145 6,467 6,790 7,130 7,487 7,861 Maintenance Worker I 39-255 5,741 6,028 6,329 6,645 6,977 Office Assistant II* 39-135 5,443 5,715 6,001 6,301 6,616 Maintenance Assistant 39-130 4,770 5,009 5,259 5,522 5,798 Office Assistant I* 39-130 4,770 5,009 5,259 5,522 5,798 Recreation Leader III 39-165 3,917 4,113 4,319 4,535 4,762 Recreation Leader II 39-140 3,562 3,740 3,927 4,123 4,329 Recreation Leader I 39-115 3,151 3,309 3,474 3,648 3,830 *Approved Classifications, unbudgeted
Steps
Monthly Ranges
City of Half Moon Bay
Salary Schedule
Effective July 1, 2026
399

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Kenneth Stiles, Interim Administrative Services Director TITLE: MEMORANDA OF UNDERSTANDING BETWEEN THE CITY OF HALF MOON BAY AND THE REPRESENTED MANAGEMENT TEAM; THE COMPENSATION AND

BENEFITS PLANS FOR NON-REPRESENTED CONFIDENTIAL EMPLOYEES AND UNREPRESENTED EXECUTIVE EMPLOYEES FOR THE PERIOD OF JULY 1, 2026, THROUGH JUNE 30, 2030
RECOMMENDATION:

Adopt resolutions:

1. Authorizing the City Manager to execute a Memorandum of Understanding between the City of Half Moon Bay and the Represented Management Team for the period of July 1, 2026, through June 30, 2030, and Approve the Applicable Salary Schedules; and

2. Approving the Compensation and Benefits Plans for Non-Represented Confidential Employees and Unrepresented Executive Employees for the same period and approving the Applicable Salary Schedules
FISCAL IMPACT:

The proposed cost of living and additional variable cost of benefits based on eligibility increases in the four-year agreement will increase costs approximately by $309,631 for FY 2026-2027 and by an estimated total of $938,406 thousand over the four-year agreement. The fiscal year 2026- 2027 budget will be amended by $309,631.

STRATEGIC ELEMENT:

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

BACKGROUND:

The Memorandum of Understanding between the City and the Represented Management Team expired on June 30, 2026. The Represented Management Team (RMT) represents employees in supervisory, professional, and management classifications.

During negotiations, the City focused on developing a comprehensive compensation and benefits structure that better aligns with comparable agencies. This alignment supports 400
recruitment and retention and helps ensure the City can continue providing quality services to the community. The City pursued these goals while remaining mindful of long-term fiscal sustainability.

The City has historically provided similar compensation and benefit structures to RMT, nonrepresented confidential employees, and unrepresented executive employees. This approach supports consistency among employee groups with similar organizational responsibilities.

DISCUSSION:

The City and RMT began negotiations prior to the expiration of the previous agreement and met through several bargaining sessions. As proposals were developed and evaluated, the City’s management and negotiating teams reviewed compensation and benefit structures offered by comparable agencies within San Mateo County.

The tentative agreement with RMT generally follows the compensation and benefit structure negotiated with Local 39, with provisions specific to represented management employees. The parties ultimately reached a tentative agreement, which has since been ratified by the RMT membership.

Consistent with the City’s historical practice, staff also recommends extending the corresponding compensation and benefit provisions to non-represented confidential employees and unrepresented executive employees. This would provide a consistent four-year compensation and benefits structure across these employee groups. The updated salary schedule also applies the same cost-of-living adjustments to part-time classifications.

The principal changes from the prior Memorandum of Understanding and compensation and benefits plans are summarized below.

Summary of Changes
Term Four-year agreement from July 1, 2026, through June 30, 2030.

Union
Recognition
(RMT Only)
Updates the bargaining unit to include the Assistant City Clerk, Communications Specialist, Economic & Community Vitality Manager, Housing Coordinator, Public Works Supervisor, and Recreation Supervisor Salary
Provides phased salary increases over the four-year term: 5% in Year 1, 3.5% in Year 2, and 3.25% in each of Years 3 and 4, along with a one-time $2,500 payment in Year 1.
401
Vacation
and Admin
Payout
Increases the annual vacation and administrative leave payoff limit from 104 to 160 hours and allows employees to receive payment in either March or November.

Service
Recognition
Expands service recognition eligibility to all RMT and unrepresented employees.

Uniforms
(RMT Only) Increase the annual uniform allowance to $265 Medical
Insurance
Establishes a two-tier health benefit structure. Employees hired on or after July 1, 2026, receive a City contribution up to the applicable Kaiser premium, while employees hired before July 1, 2026, retain their existing health benefit provisions, with the ability to permanently opt into the new tier.

Holidays Adds Juneteenth as a recognized City holiday.

The successor Memorandum of Understanding and compensation and benefits plans also include language revisions for legal compliance, consistency, and clarity. The attached redline version reflect all proposed changes and remain subject to final review and execution, as applicable.

Staff recommends that the City Council adopt the attached resolutions authorizing the City Manager to execute the RMT Memorandum of Understanding, approving the compensation and benefits plans for non-represented confidential and unrepresented executive employees, and establishing the updated salary schedules.

Staff also requests authorization for the City Manager to make minor administrative revisions to the Memorandum of Understanding prior to execution, provided those revisions do not materially alter the terms approved by the City Council.

ATTACHMENT:

1. Resolution Approving the Memorandum of Understanding Between City of Half Moon Bay and Represented Management Team and Applicable Salary Schedules

2. Resolution Approving the Compensation and Benefits Plans for Non-Represented Confidential Employees and the Unrepresented Executive Employees and Applicable Salary Schedules
402
RESOLUTION NO. C-2026-

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

CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF

HALF MOON BAY AND THE REPRESENTED MANAGEMENT TEAM AND APPROVING THE APPLICABLE SALARY SCHEDULE FOR THE PERIOD OF JULY 1, 2026, THROUGH JUNE 30, 2030 WHEREAS, the Memorandum of Understanding between the City of Half Moon Bay and the Represented Management Team expired on June 30, 2026; and WHEREAS, the City and the Represented Management Team met and conferred in good faith and reached a tentative agreement for a successor Memorandum of Understanding for the period of July 1, 2026, through June 30, 2030; and
WHEREAS, the successor Memorandum of Understanding establishes updated compensation, benefits, and employment provisions intended to support employee recruitment and retention while maintaining fiscal sustainability; and WHEREAS, implementation of the successor Memorandum of Understanding requires approval of the corresponding salary schedule for classifications represented by the Represented Management Team; and
WHEREAS, the City Council has reviewed the proposed Memorandum of Understanding and finds that its approval is in the best interests of the City and its employees.

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

1. Approves the Memorandum of Understanding between the City of Half Moon Bay and the Represented Management Team for the period of July 1, 2026, through June 30, 2030, substantially in the form attached as Exhibit A.

2. Approves the salary schedule applicable to classifications represented by the Represented Management Team, attached as Exhibit B, which shall become effective upon execution of the Memorandum of Understanding by both parties and shall apply as provided in the Memorandum of Understanding.

3. Authorizes the City Manager to execute the Memorandum of Understanding and make minor administrative or clarifying revisions that do not materially alter the terms approved by the City Council.

I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18th day of August 2026, by the City Council of Half Moon Bay by the following vote:
403
AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
404

MEMORANDUM OF UNDERSTANDING
Between

CITY OF HALF MOON BAY
And

REPRESENTED MANAGEMENT TEAM MEMBERS
July 1, 2026 - June 30, 2030

405

TABLE OF CONTENTS
Section Page No.

Memorandum of Understanding 1
Memorandum of Understanding 1.1 4
Recognition 2
Recognized Classifications 2.1 4
Probationary Period 2.2 5

Salary 3
Salary 3.1 5
Bilingual Compensation 3.2 5
Notary Public Services Pay 3.3 6
Salary on Promotion 3.4 6
Acting Pay 3.5 6
Out of Class Pay 3.6 6
Citywide Classification Study 3.7 6
Other Pay 4
Vacation and Administrative Leave Payoff 4.1 7
Sick Leave Payoff 4.2 9
Service Recognition 4.3 9
Uniforms 4.4 9
Reimbursement for Use of Technology 4.5 10
Suspension of Class B License Requirement 4.6 10
Mileage and Car Allowance 5
Mileage 5.1 10
Educational Training Incentive Program 6
Educational Reimbursement 6.1 11
Health and Welfare 7
Medical, Dental, & Vision Insurance 7.1 11
Eligibility 7.1.A 11
Medical Insurance Benefits 7.1.B 12
Cafeteria Plan 7.1.C 12
Flexible Spending Accounts 7.1.D 14
Life Insurance and AD & D Coverage 7.2 14
Disability Coverage 7.3 14
Deferred Compensation 7.4 14
Retirement 7.5 15
406

TABLE OF CONTENTS
Section Page No.

Holidays 8
Recognized Holidays 8.1 16
City Hall Closure 8.2 17
Leaves 9
Vacation Leave 9.1 18
Sick Leave 9.2 19
Industrial Accident Leave 9.3 19
Bereavement Leave 9.4 20
Family and Medical Leave 9.5 20
Jury Duty 9.6 20
Court Leave 9.7 20
Military Leave 9.8 21
Administrative Leave 9.9 21
Leave Accounting 9.10 21
Personnel Rules 10
Personnel Rules 10.1 22
Layoff Notification 11
Layoff Notification and Severance 11.1 22
Miscellaneous Provisions 12
Grievance Procedures 12.1 24
Disciplinary Procedures 12.2 25
Performance Evaluations 12.3 25
Letters of Reprimand 12.4 25
Me-Too Salary and Benefits 12.5 25
Alternate Work Schedules 12.6 26
City Rights 12.7 27
Contract Term 13
Contract Term 13.1 27
Signature Page 28
Exhibit A – Salary Schedules 29
Exhibit B – New Employee Orientation Policy 31
Exhibit C – Modifications to Grievance Process 33
Exhibit D – Modifications to Discipline Process 36
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4 SECTION 1

MEMORANDUM OF UNDERSTANDING

1.1 Memorandum of Understanding
Pursuant to the provisions of the Meyers-Milias-Brown Act (MMBA) of the State of California, this Memorandum represents the understanding reached between the City of Half Moon Bay and the Represented Management Team (RMT) members, pertaining to the represented employees’ salary, benefits, and working conditions. It is understood that the team members must ratify and the City Council must formally approve this Memorandum of Understanding (MOU) before it can take effect.

The parties agree that negotiations for the MOU beginning July 1, 2030, shall commence no later than three (3) months prior to the expiration of this current Agreement.

SECTION 2

RECOGNITION

2.1 Recognized Classifications
The following classifications are included within this MOU:

Assistant City Clerk
Assistant Engineer
Associate Planner
Associate Engineer
Capital Improvement Project Manager
Chief Building Official
City Engineer
Communications Specialist
Economic & Community Vitality Manager
Housing Coordinator
Management Analyst/Project Manager, with the exception of the Management Analyst/Project Manager assigned to Human Resources
Planning and Development Services Manager
Public Works Supervisor
Public Works Superintendent
Recreation Coordinator
Recreation Supervisor
Senior Management Analyst
Senior Planner
408
5 2.2 Probationary Period
RMT employees shall have a one-year probationary period. Employees on probationary are not covered under the MOU in regards to grievance and disciplinary procedures.

SECTION 3
SALARY

Effective the first full pay period on or after July 1, 2027, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three-and-a-half percent (3.5%).

Effective the first full pay period on or after July 1, 2028, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

Effective the first full pay period on or after July 1, 2029, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

If salary and benefit survey data is used in the future to consider compensation adjustments, the City and RMT will meet to discuss survey methodology and scope.

3.2 Bilingual Compensation
Effective July 1, 2018, members of the RMT who are bilingual in a language required for the conduct of City business and who have demonstrated proficiency as determined by a standard academic test of proficiency shall receive the following bilingual pay if the City Manager determines that the member’s bilingual skills assist the City in carrying out its organizational mission:
 Two and a half percent (2.5%) per month of employee’s base salary for employees certified in oral skills;
 Two and a half percent (2.5%) per month of employee’s base salary for employees certified in written skills;
409
6  Two and a half percent (2.5%) per month of employee’s base salary for employees certified in simultaneous translation skills;

3.3 Notary Public Services Pay
Effective July 1, 2005, the City will pay a two and one-half percent (2.5%) wage differential to an Association employee who is assigned in writing and is required to perform notary functions for the City. No employee shall be asked to perform notary services for the City if she/he is not assigned in writing.

3.4 Salary on Promotion
Any RMT employee who is promoted to a position having a higher salary range shall receive the minimum step in the new range that provides for no less than a five percent (5%) increase.

If an employee is eligible for a merit step increase on the same date a promotion is to be effective, the step increase shall be granted before the promotion.

3.5 Acting Pay
With the approval of the City Manager, an employee may be assigned acting duties of a position having a higher salary range. The employee must be assigned in writing to perform the full scope of duties as specified in the job description of the higher-level position for at least five (5) consecutive business days. Employees will be paid the minimum step in the new range that provides at least a five (5.0%) percent (5%) increase over their current salary for the entire period of the acting assignment.

At the discretion of the City Manager, intermittent acting pay may be approved when an employee is assigned to periodically perform acting duties for than more than five (5) total days over a designated period of time.

3.6 Out of Class Pay
Employees shall be eligible for out of class pay equal to five percent (5.0%) over the employee’s current base salary when, because of turnover in supervisory or management personnel, they are assigned in writing to perform major duties normally performed in those higher-level positions while the positions are vacant, and for up to ten (10) working days’ time after they are filled.

3.7 Citywide Classification and Compensation Study
In advance of the July 2030 negotiations, the City will conduct a classification and compensation survey of benchmark classifications represented by RMT, using the existing 410
7 City-wide compensation philosophy adopted in 2019 and the list of comparable cities from the 2026 study. The City shall provide notice to the Represented Management Team upon completion of the classification and compensation study, along with a copy of the results of the study. At the request of either party, the City and the Represented Management Team will meet to discuss the results of the study and proposals related to implementation of such results.

SECTION 4

OTHER PAY

4.1 Vacation and Administrative Leave Payoff
When an employee is separated from service, he/she shall be entitled to a lump sum payment for any unused vacation and administrative leave at the time of separation.

In addition to the payment available upon separation, permanent employees may, with the approval of the City Manager, receive an annual payment in exchange for earned vacation or administrative leave up to one hundred and sixty hours (160) total in any given calendar year payable during the month of March or November (“pay-in-lieu hours”), subject to the following provisions.

The employee must make an irrevocable election by December 31 of the calendar year preceding the year in which payment will be made or by the preceding Friday if December 31 falls on a Saturday or Sunday. Selections will not automatically carry over from one calendar year to the next calendar year.

An employee who fails to elect by December 31 each year or by the preceding Friday if December 31 falls on a Saturday or Sunday, to participate in the pay-in-lieu hours for the following year will be deemed to have elected not to participate and they will be prohibited from receiving any pay-in-lieu hours during that year except as, and only to the extent, permitted under the emergency provisions below.

 An employee cannot request the payout of any pay-in-lieu hours until those hours have been earned and accrued. Further, at the time of payment, the employee must have the requisite number of hours available and meet the requirements pursuant to the applicable MOU section for sell back. Otherwise, the amount to be cashed out will be based on the number of hours available at the time of the sell back payment.
 When pay-in-lieu is cashed out, it will be paid based on the employee's rate of pay at the time it is paid. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions.
411
8  Existing caps on the accrual of vacation or administrative leave will remain in effect.
 In the event of an unforeseeable emergency, as defined below, an employee may apply to receive pay-in-lieu hours, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If Human Resources approves an employee's application, the City will pay the employee the pay-in-lieu amount it deems necessary to meet the emergency need.
"Unforeseeable emergency" means a severe financial hardship of the employee resulting from an illness or accident of the employee, the employee's spouse, or the employee's dependent (as defined in Internal Revenue Code section 152, and, without regard to Internal Revenue Code sections 152(b)(1), (b)(2), and (d)(l)(B)); loss of the employee's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, such as damage that is the result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a direct result of events beyond the control of the employee.

Finally, the need to pay for the funeral expenses of a spouse or dependent (as defined in Internal Revenue Code section 152, and, without regard to Internal Revenue Code sections 152(6)(1), (6)(2), and (d)(l)(B)) of the employee may also constitute an unforeseeable emergency.

Neither the purchase of a home nor the payment of college tuition is an unforeseeable emergency.

Pay-in-lieu hours on account of an unforeseeable emergency will not be paid to the extent that such an emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the employee's assets, to the extent liquidation of such assets would not itself cause severe financial hardship. Employees who face an unforeseen emergency and experience the need for an emergency cash out of annual leave are advised to contact Human Resources for a determination, which will be made based on the individualized and specific circumstances presented.

In order to be eligible for this cash out, the employee must have at least forty (40) hours of accrued vacation time remaining in their vacation bank after the cash out. 412
9 4.2 Sick Leave Payoff
Upon separation from the City, RMT members with a minimum of five (5) years of service, but less than ten (10) years of service, shall receive reimbursement for twenty-five percent (25%) of their accrued sick leave with a cap of Twenty Five Hundred Dollars ($2,500.00). TEAM members with a minimum of ten (10) years of service, but less than twenty (20) years of service, shall receive reimbursement equal to twenty-five percent (25%) of accrued sick leave with no cap. TEAM members with a minimum of twenty (20) years of service shall receive reimbursement equal to forty percent (40%) of accrued sick leave.

4.3 Service Recognition
The City shall make service recognition awards as follows:
 Employees with at least seven years and less than fourteen years of full-time Half Moon Bay City-service shall receive an annual payment of $700 in the pay period following their anniversary date.
 Employees with at least fourteen years and less than twenty-one years of full-time Half Moon Bay City-service shall receive an annual payment of $1400 in the pay period following their anniversary date.
 Employees with at least twenty-one years full-time Half Moon Bay City-service shall receive an annual payment of $2100 in the pay period following their anniversary date.

4.4 Uniforms

The City shall furnish uniforms and/or clothing required by the City to be worn or used by Unit employees and shall provide those employees required to wear a uniform, an allowance for the purpose of uniform maintenance of Two Hundred Fifty ($265.00) per year to be paid the first pay period in July.

All logos and patches will be furnished and attached by the City. Rain wear and safety gear will be furnished by the City as needed.
413
10 The City will issue the following uniforms to the classifications of Chief Building Official, Maintenance Superintendent and Public Works Supervisors upon hire and every first full pay period on or after July 1:
 Ten short-sleeve T-shirts with City logo
 Three polo short sleeve shirts
 Six baseball-style caps with City logo
 One hooded sweatshirt with City logo
 One winter jacket with City logo
 $300 for the purchase of workpants.
 $300 per year for work boots

4.5 Reimbursement for Use of Technology
If an employee is required by his or her supervisor to use his or her personal cell phone, tablets, laptops or other technology in the course of City business, the City will provide a stipend of one hundred dollars ($100) per month.

4.6 Suspension of Class B License Requirement
The parties acknowledge that the job description for the “Public Works Superintendent” classification includes a requirement to hold a California class “B” driver’s license within six (6) months of hire. The City will temporarily suspended that requirement. The requirement for employees in the Public Works Superintendent classification may be reinstated by the City upon notice to Represented Management and the impacted employee(s). Impacted employees shall have six (6) months from the date of such notice to secure a class B Driver’s License.

SECTION 5

MILEAGE AND CAR ALLOWANCE

5.1 Mileage
Employees will receive reimbursement for each mile traveled on City business in the employee’s private vehicle at the current rate established by the Internal Revenue Service. Private vehicles used for City business shall comply with applicable California Vehicle Code Sections pertaining to “Insurance or Proof of Ability to Respond to Damages.”
414
11 SECTION 6

EDUCATIONAL TRAINING INCENTIVE PROGRAM

6.1 Educational Reimbursement
The City shall reimburse employees for job-related educational classes, certifications, professional memberships, conferences, workshops, or seminars, conditioned upon prior approval of the City Manager or their designee in the amounts set forth below. Eligible classes, certifications, professional memberships, workshops, conferences, and seminars must:
 Relate to and be beneficial for the work of the employee’s current City position or occupation; or
 Satisfy a continuing education requirement of the employee’s current City position; or
 Prepare the employee for advancement/promotion to positions of greater responsibility within the City.

Under this section, employees may also request reimbursement of payments made towards student loans.

Employees who have completed less than two (2) years of service with the City may be reimbursed up to a maximum amount of One Thousand Five Hundred Dollars ($1,500) per calendar year, per employee.

Employees who have completed two or more years of service with the City may be reimbursed up to an additional One Thousand Five Hundred Dollars ($1,500), for a total maximum reimbursement of Three Thousand Dollars ($3,000) per calendar year, per employee. This additional $1,500 may only be applied towards reimbursement for jobrelated degrees from accredited educational institutions or repayment of student loans.

The City does not make any representations as to the tax treatment of this benefit.

SECTION 7

HEALTH AND WELFARE

7.1 Medical, Dental and Vision Insurance
A. Eligibility
All regular employees of the City eligible for PERS medical membership shall be eligible to enroll in the health and welfare benefits provided by this Section and currently authorized for this bargaining unit. Eligible dependents of a regular employee eligible for PERS 415
12 medical membership shall be permitted to participate in any health and welfare benefit provided in this Section to the extent authorized by the benefit plan.

B. Medical Insurance Benefits
During the term of the MOU, the City agrees to contract with the California Public Employees Retirement System (CalPERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits.

C. Cafeteria Plan
For the duration of the MOU, the City agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits.

Benefits available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.

The City agrees to provide a Cafeteria Plan Allowance to all employees eligible to participate in City-sponsored health and welfare benefits.

Health Benefit Structure – Employees Hired On or After July 1, 2026 Employees originally hired on or after July 1, 2026 shall participate in the health benefit structure described below. Employees hired on or before June 30, 2026 shall continue to receive the health benefit structure in effect prior to July 1, 2026, unless they irrevocably elect to participate in the post-July 1, 2026 health benefit structure.

For calendar year 2026, the City agrees to provide the following maximum monthly contribution toward medical insurance premiums for employees eligible to participate in City sponsored health and welfare benefits. Based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), the City shall contribute up to the following maximum of for each category for regular fulltime employees:
 Subscriber - $1,168.86
 Subscriber + 1 - $2,337.72
 Subscriber +2 - $3,039.04
For example, an employee with no dependents shall be eligible for City contributions at the Subscriber category. An employee with one dependent shall be eligible for City contributions at the Subscriber + 1 category. An employee with family coverage shall be eligible for City contributions at the Subscriber + 2 category. 416
13 The City's contribution shall not exceed the actual cost of the selected medical plan. Any unused portion of the City's contribution shall not be paid to the employee as cash or any other form of compensation.

The City's contribution for part-time employees shall be pro-rated based on their FTE.

Grandfathered Health Benefit – Employees Hired on or Before June 30, 2026 Employees originally hired on or before June 30, 2026 with no break in service who elect to remain under the pre-July 1, 2026 health benefit structure shall receive a monthly cafeteria allowance of $1,900. Employees enrolled in medical coverage shall receive any unused portion of the allowance as taxable cash. Employees who waive City-sponsored health and welfare benefits shall receive the full $1,900 monthly allowance as taxable cash in lieu of benefits.

Election to Participate in New Health Structure
Employees originally hired on or before June 30, 2026 with no break in service may elect to participate in the health benefit structure applicable to employees hired on or after July 1, 2026. Such election shall be irrevocable. Employees who make this election shall thereafter be subject to all provisions applicable to the post-July 1, 2026 health benefit structure and may not return to the pre-July 1, 2026 health benefit structure.

In addition, the City agrees to provide dental and vision insurance up to the family level coverage for regular full-time employees. The City’s contribution for part-time employees 417
14 shall be pro-rated based on their FTE.

For particulars of coverage, see appropriate pamphlets and contracts.

D. Flexible Spending Accounts
The City will offer a flexible spending account (FSA) program available to employees.

Employees may elect to contribute pre-tax dollars towards their FSAs for approved uses under such plan(s). FSA contributions shall not exceed IRS allowable limits.

7.2 Life Insurance and AD & D Coverage
The City shall provide Life Insurance and Accidental Death and Dismemberment Coverage to each employee in the amount equal to one (1) times their individual annual base salary.

7.3 Disability Coverage
The City shall provide long-term disability coverage of sixty seven percent (67%) of monthly earnings to a maximum benefit of six thousand dollars ($6,000) after a sixty (60) day elimination period.

7.4 Deferred Compensation
Employees shall be eligible to participate in the City’s voluntary deferred compensation program (457 Plan). The plan shall be administered by a third party at no cost to the City.

Notwithstanding the foregoing, for employees who have completed one year of service with the City, the City will match 50 cents for every dollar that the employee contributes towards their 457 Plan account, up to an employee contribution of six percent (6.0%) of the employee’s salary. For example, if an employee contributes 6.0% or more of their salary towards their 457 Plan account, they will receive a 3.0% match from the City. For employee contributions, the City will make payroll deductions and transmit funds to administrator. The City makes no representation on the merit of the plan or any of the investment products or instruments which may be offered by the plan. The individual participant is responsible for evaluating the investment options within the plan. The City currently contracts with the ICMA-RC and CalPERS to provide a 457 program. 418
15 7.5 Retirement
The City shall continue to participate in the CalPERS Retirement System. The City will provide the following retirement benefits to employees who do not meet the definition of “new member” as set forth in Government Code Section 7522.04(f):
a. Employer Paid Member Contribution (EPMC): Effective July 1, 2015, employees will be required to pay seven percent (7%) of the member contribution. b. 2% @ 55 Retirement option.
c. Unused Sick Leave Conversion for Retirement Service Credit – Retiring employees, defined as employees who request retirement payments from PERS within 120 days from separation from service, may convert unused sick leave to service credits to the maximum allowed by CalPERS. This provision to convert sick leave to service credits is at the option of the employee and, if so selected, is in-lieu of any other options available to convert sick leave to cash upon separation that the Memorandum of Understanding may provide. d. Employer Paid Member Contribution (EMPC) converted to pay rate during the final compensation period.
e. Retirement benefits of employees who on or after January 1, 2013 became members of CalPERS or a retirement system that has reciprocity with CalPERS shall conform to the requirements of the California Public Employees’ Pension Reform Act of 2013, Gov. Code § 7522 et seq., as may be amended.
f. The City will provide the following retirement benefits to all employees:

1. 1959 Survivor Benefit – 3rd Level.

2. Military Service Credit (Statutes of 1976) – The employee, at the employee’s expense, may purchase Military Service Credits.

3. Pre-retirement Option 2W Death Benefit.

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16 SECTION 8

HOLIDAYS

8.1 Recognized Holidays
All full-time bargaining unit employees are entitled to the following holidays with pay:

New Year’s Day
One day prior to or following New Year’s Day
Martin Luther King, Jr. Day
President’s Day
Farmworker Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
One day prior to or following Christmas Day
One Floating Holiday
Part-time employees shall receive holiday pay equivalent to their regularly scheduled hours on the day on which the holiday is observed (for example, if an employee is regularly scheduled to work six (6) hours on Mondays, they would receive six (6) hours of holiday pay for any holidays that are observed on a Monday).

When any day recognized as a holiday falls on a Sunday, the holiday shall be observed on the following Monday. When any day recognized as a holiday falls on a Saturday, the holiday shall be observed on the preceding Friday.

For Christmas and New Year’s Holidays, the following schedule shall be used to determine the actual days off:

Day Before or
Actual After
Holiday Holiday Observed Observed
Sunday Monday Tuesday
Monday Monday Tuesday
Tuesday Tuesday Monday
Wednesday Wednesday Tuesday
Thursday Thursday Friday
Friday Friday Thursday
Saturday Friday Thursday
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17 8.2 City Hall Closure:
2026-2027
City Hall will be closed December 28-30, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

2027-2028
City Hall will be closed December 27-29, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2027 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2028. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2028-2029
City Hall will be closed December 27-29, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2028 will be granted two (2) floating holidays to be used solely for purposes of taking 421
18 paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2029. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2029-2030
City Hall will be closed December 26-28, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2029 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2030. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.

SECTION 9
LEAVES

9.1 Vacation Leave
All full-time members are entitled to paid vacation time off which shall accrue at the following rate:
0 through 4 years 8 hours per month
5 through 10 years 10 hours per month
11 through 15 years 12 hours per month
16 through 20 years 14 hours per month
21+ years 15.33 hours per month
The accrual rate for part-time employees shall be pro-rated based on their FTE.

Employees may accumulate up to, but not more than, two (2) years of vacation credit at their current accrual level. When an employee reaches seventy-five percent (75%) of the two-year limit, he/she shall be required to schedule vacation time off. If such vacation leave is denied by the City, the employee shall be paid for the vacation time reached in excess of the limit.
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19 9.2 Sick Leave
All regular full-time members shall accrue eight (8) hours of sick leave with pay for each month of service. The accrual rate for part-time employees shall be pro-rated based on their FTE.

Sick leave may be applied to:
a. Absence necessitated by an employee’s personal illness. b. Medical and dental appointments.

All conditions and restrictions that govern employee use of sick leave shall also apply to the use by an employee to attend to an illness of his/her child, mother, father, motherin-law, father-in-law, spouse, domestic partner; domestic partner’s mother, father or child; and any dependent living in the same household of the employee.

Sick Leave incentive: Sixteen (16) hours vacation leave will be awarded contingent upon non-usage of accumulated sick leave {i.e. employee authorized eight (8) additional vacation hours per six (6) months provided sick leave usage does not exceed sixteen (16) hours for that same period}.

9.3 Industrial Accident Leave
An employee who has suffered an illness or injury arising out of and in the course of his/her employment, as defined by the Workers' Compensation laws of the State of California and is receiving temporary disability indemnity payments shall be entitled to industrial accident leave while so disabled without loss of compensation for a period not to exceed seventy-five (75) calendar days.

During the period the employee is paid by the City, the employee shall endorse to the City any temporary disability indemnity benefit payments received as a result of Workers' Compensation insurance coverage. The City will withhold payment of all compensation and benefits provided by this section until it is determined whether the illness or injury is accepted. If the employee's disability caused by illness or injury arising out of and in the course of the employee's employment extends beyond seventy-five (75) calendar days as described above, the employee may integrate his/her unused sick leave, vacation leave, and compensatory time accruals with the Workers' Compensation payments, provided that the sum of all Workers' Compensation Temporary Disability Indemnity benefits and paid leave do not exceed the employee's regular rate of pay for said period.

Once sick leave is exhausted, the employee may request an unpaid leave of absence. Such request must be in writing and must include a medical doctor’s estimated date of return to full duty.
423
20 9.4 Bereavement Leave
The maximum period of bereavement leave with pay granted to any employee, whether full-time or part-time, for each death in his/her immediate family (immediate family includes and is limited to parents, grandparents, children, grandchildren and siblings of the employee and/or spouse/domestic partner of the employee) shall be three (3) consecutive working days. Bereavement leave with pay granted to an employee for all deaths in his/her immediate family shall not exceed five (5) working days during any twelve (12) month period except by special action of the City Council for good cause shown, except that an additional day will be granted in each case where the death takes place outside the State of California.

9.5 Family and Medical Leave
The City will comply with applicable state and federal laws regarding family and medical leave.

9.6 Jury Duty
A regular employee who is summoned for attendance to any court for jury duty will promptly inform his or her supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel time).

Employees shall return all jury fees to the City. Jury fees received by an employee, if any, will be remitted to the City within fifteen (15) working days after they are received, exclusive of any meal, expense, and/or travel reimbursements.

Upon being excused from the court each day, the employee must return to work if he or she has more than four (4) hours remaining before the end of his or her workday. Jury duty leave will be considered time worked for pay calculation purposes.

9.7 Court Leave
Each employee of the City who is required, under subpoena, to take time off duty with the City, to appear as a witness, by reason of their employment with the City, before any court, arbitrator, or tribunal, shall receive their regular salary during the time of their service as a witness under subpoena, less any and all witness fees which the employee may receive. Compensation will not be paid if the employee is a party to the action and is in a position adverse to the City. Upon service of subpoena, an employee shall immediately advise their supervisor thereof, and of the time when the employee is required to appear in Court in response thereto.
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21 9.8 Military Leave
The City shall grant military leave in accordance with the California Military and Veterans Code.

9.9 Administrative Leave
All members are entitled to accrue eight (8) hours of administrative leave per month.

A Department Head may recommend to the City Manager that up to an additional 12 hours of administrative leave per fiscal year be authorized in recognition of unanticipated efforts that were not contemplated in the established monthly allocation. Additional hours shall not be based on actual hours worked but on the value of the effort to the City’s mission and on the employee’s performance. The City Manager has full discretion in deciding whether to grant additional leave.

Employees may accumulate up to, but not more than, two (2) years of administrative leave credit. When an employee reaches seventy-five percent (75%) of the two-year limit, he/she shall be required to schedule administrative leave time off. If such administrative leave is denied by the City, the employee shall be paid for the administrative leave time reached that is in excess of the limit.

9.10 Leave Accounting
FLSA Exempt employees who work less than regularly scheduled hours in a bi-weekly pay period must submit a leave request form and use accrued leaves to make up the difference between actual hours worked and the “normal” work hours in a bi-monthly pay period. For the purpose of this section, attendance at City meetings or training outside the regular work hours of 8:30 a.m. to 5:00 p.m. shall not count as hours worked.

For example, an employee who works 8 hours on Monday, Tuesday and Wednesday; 10 hours on Thursday (in the office or in the field), 4 hours on Friday and 8 hours per day for the remainder of the bi-weekly pay period would not have worked for two hours of the bi-monthly pay period. In this scenario, an employee would be required to receive approval for the leave, complete a Leave Request Form and charge accrued vacation, administrative leave or sick leave as appropriate, for 2 hours. Management employees will be required to complete timesheets that identify the number of hours worked per day. Hours worked for attendance at City meetings or training outside the regular work hours of 8:30 a.m. to 5:00 p.m. do not need to be recorded.

Preauthorization for a change in the regular work schedule must be obtained from the Department Head.
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22 SECTION 10

PERSONNEL RULES

10.1 Personnel Rules
Notwithstanding this MOU, the parties agree that the City may implement new personnel rules and policies, and/or an employee-relations resolution, during the term of this MOU.

Such rules and policies may only be implemented after meet and confer as appropriate under the Meyers-Milias-Brown Act. The City anticipates that such negotiations would occur with all bargaining units, Citywide. The City anticipates that such negotiations would occur with all bargaining units, Citywide. The parties agree that the agreed upon language with respect to new employee orientations, attached hereto as Exhibit B, will be included as part of the City’s personnel rules and policies as soon as administratively possible.

SECTION 11

LAYOFF NOTIFICATION

11.1 Layoff Notification & Severance
The appointing authority may lay off employees or demote employees in lieu of layoff subject to the following conditions:
(a) Whenever in the judgment of the City Council it becomes necessary, in the interest of economy or because the necessity for the position or an employment involved no longer exists, the City Council may abolish any position or employment in the competitive service and lay off, demote or transfer an employee holding such position or employment without filing written charges and without the right to appeal.
(b) Seniority shall be observed in effecting such reduction in personnel, and the order of layoff shall be in the reverse order of total cumulative time served in the City's service upon the effective date of the layoff. Layoff shall be made within classes of positions, and all provisional employees in the affected class or classes shall be laid off prior to the layoff of any probationary or regular employee. (c) Whenever seniority is equal, the seniority of the employee shall be determined first by examining total cumulative service within the affected classification and, if not determinative, then by position on the employment list. (d) Length of cumulative service is interpreted to be total time spent in the employ of the City, including all days of attendance at work, approved leaves of absence whether earned or specially authorized, and time served on military leave of 426
23 absence but shall not include unauthorized absences, time spent between employment with the City, suspensions, layoffs or any other time when the employee was not actively engaged at work.
(e) The City shall notify in writing those employees to be laid off at least ten (10) calendar days prior to the effective date of any such layoff by hand delivery of Certified Mail. If notice is sent by Certified Mail, it shall be sent to the employee’s address on file with Human Resources. The Represented Management Unit’s designated representative(s) shall be concurrently notified by hand delivery or Certified Mail. The notice shall include the action to be taken, options available to the employee (if applicable), and information regarding reemployment rights.

In the event an employee is laid off for reasons not related to contracting out for services, employees to be laid off shall receive severance pay based on the below tier upon separation from employment.
1-5 years 120 hours
5-10 years 160 hours
10+ years 200 hours
In the event an employee is laid off as a direct result of the City contracting out for services, and the employee is not offered alternate employment at the City or the entity to which services are outsourced, the City will pay the employee six (6) months of severance pay at the employee’s final City base pay rate upon separation in consideration for the employee’s release of any and all claims.

An employee who: (a) declines to apply for alternate employment with the entity with whom the City contracts for services; or (b) declines an offer of employment with a salary of at least eighty-five percent (85%) of the employee’s City base salary, from the entity with whom the City contracts; or (c) retires upon separation, will not be eligible for severance pay.

Employees laid off from higher-ranking classifications shall have the option, if qualified, to job classifications in the same job series. In addition, such employees shall have the option, if qualified subject to the City’s personnel rules, to demote to vacancies in equal or lower rated job classifications outside the job series. If applicable, an employee shall be notified of option(s) in the notice of layoff and shall have ten (10) calendar days to notify the City if they elect to accept the option presented.
(f) If an employee is demoted in lieu of layoff, the appointing authority shall assign the employee to the pay rate in the pay range for the new classification that least reduces the employee's prevailing pay rate immediately prior to the demotion. 427
24 (g) The names of persons laid off or demoted in accordance with these rules shall be entered upon a reemployment list. Such list shall be used when a vacancy arises in the same or lower class of position. When a vacancy occurs in a job classification for which a reemployment list exists, the eligible person(s) on the reemployment list shall be recalled in the inverse order of layoff. When an employee is to be recalled, notice shall be sent to the employee’s address on file with Human Resources. It is the employee’s responsibility to inform the City of his/her current address and phone number. The City has no responsibility to attempt to locate a person on a reemployment list if a notice of reinstatement is returned undeliverable.

Persons reemployed in a lower class, or on a temporary basis, shall be continued on the list for the higher position for the twelve (12) month period. (i) The City shall provide laid off employees with job search assistance for forty-five (45) days following the effective date of layoff. The assistance shall include career counseling, resume preparation, and job search assistance. (j) An employee that retires instead of being laid off may not be eligible for reinstatement.

SECTION 12

MISCELLANEOUS PROVISIONS

12.1 Grievance Procedures
The grievance procedures are contained in the City’s Personnel Rules. he parties have agreed to revisions to City’s grievance procedures, attached hereto as Exhibit C, which will be incorporated into the City’s Personnel Rules as soon as administratively possible following adoption of this Agreement by the City Council. The City will not propose any further amendment(s) to the grievance procedures in the Personnel Rules as provided by 428
25 Section 10.1 of this MOU during the term of the agreement.

12.2 Disciplinary Procedures
Disciplinary procedures are contained in the City’s Personnel Rules. The parties have agreed to revisions to City’s discipline procedures, attached hereto as Exhibit D, which will be incorporated into the City’s Personnel Rules as soon as administratively possible following adoption of this Agreement by the City Council. The City will not propose any further amendment(s) to the disciplinary procedures in the Personnel Rules as provided by Section 10.1 of this MOU during the term of the agreement.

An employee is entitled to a representative of his/her choice, so long as that representative is available within a reasonable time, at an investigative interview or meeting that the employee reasonably believes may result in disciplinary action.

Excluded from the grievance procedure are disciplinary matters, performance evaluation ratings, and actions of City Council.

12.3 Performance Evaluations
Each employee shall receive a written annual performance review within thirty (30) calendar days of the end of his/her evaluation period. The review shall include information regarding employee performance and objectives for the next evaluation period. Within fourteen (14) calendar days of receipt of the evaluation, an employee may provide written comments regarding the evaluation, which will be attached to the evaluation and placed in the employee’s personnel file.

12.4 Letters of Reprimand
Each employee shall receive a copy of any letter of reprimand and/or written warning prior to placement of such document in his/her personnel file. Within fourteen (14) calendar days of receipt of written reprimand and/or warning, an employee may provide written comments, which will be attached to the written reprimand and/or warning and placed in the employee’s personnel file. Letters of reprimand and/or written warning are not subject to the grievance or appeal of discipline procedures. An employee may request that letters of reprimand and/or written warning be removed from their personnel file two years following the date of reprimand or written warning. The decision to remove a reprimand or written warning from an employee personnel file is at the discretion of the City and is not subject to appeal or grievance.

12.5 Me-Too Salary and Benefits
If, between July 1, 2018 and June 30, 2021, the City provides a general, unit-wide 429
26 percentage salary range increase to another bargaining unit (International Union of Operating Engineers Local 39), or to the Non-represented Management unit, then the same percentage increase shall apply to the salary ranges for all classifications represented by Represented Management. Equity increases provided to individual job classes shall not constitute a unit-wide
increase.

If, between July 1, 2018 and June 30, 2021, the City provides an increase in the City’s contribution toward medical, dental, vision and/or EAP benefits to another bargaining unit (International Union of Operating Engineers Local 39) or to the unrepresented management unit, beyond the level of benefits provided in each current memorandum of understanding (MOU), the percentage increase in benefits shall apply to all classifications represented by Represented Management.

12.6 Alternate Work Schedule
A. PURPOSE
The purpose of this Alternative Work Schedule (AWS) (reference Administrative Policy #_2.3) is to provide schedule alternatives beyond the traditional five (5) days per week work schedule, provide flexibility for employees while maintaining excellent service levels to the community.

C. ALTERNATIVE WORK SCHEDULE OPTIONS
The City offers the following options for AWS. Each schedule is an individual option, not to be combined or run simultaneously in any way.
9/80 Schedule- an employee works 80-hours in nine, rather than ten working days per twoweek period. The employee works eight 9-hour days, and one 8-hour day each two-week period and has one day off every other week. The eight-hour day and the off day must fall on the same day of the week (e.g. eight (8) hour Friday the first week and off the next Friday). The workweek begins 4 hours into the eight-hour day maintaining 40-hour work weeks. Overtime is calculated based on this work week.
4/10 Schedule- an employee works 80-hours in eight, rather than ten, working days per two-week period. Employee works eight 10-hour days with two business days off each two430 27 week period. Four (4) business days must be worked each week. The off day must fall on the same day of the week (e.g. every Monday, without change each week).

Alternative start / end times: - the workday begins and/or ends earlier or later than the traditional 8:30 a.m. – 5:00 p.m. schedule, with the employee at work for a total of 40-hours per week.

Any AWS may begin as early as 6 A.M. and may end no later than 8 P.M., unless otherwise authorized by the City Manager.

12.7 City Rights
The City retains the exclusive right, except as expressly stated herein or in the thencurrent City personnel rules, to operate and direct the affairs of the City in all of its various aspects, including, but not limited to, the right to direct the working forces; to plan, direct and control all of the operations and services of the City; to determine the methods, means and organizations by which such operations and services are to be conducted; to assign and transfer employees; to hire, promote, demote, suspend, discipline, discharge or relieve employees due to lack of work or other legitimate reasons; and to change or eliminate existing methods, equipment or facilities.

SECTION 13

CONTRACT TERM

13.1 Contract Term
The term of the MOU is from July 1, 2026 through June 30, 2030.

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28 AUTHORIZED

SIGNATURES

MANAGEMENT TEAM CITY OF HALF MOON BAY

Julissa Acosta Matthew Chidester
Interim Economic & Community Vitality Manager City Manager

Matthew Nichols
Senior Management Analyst

Date Date

432
29 EXHIBIT A

SALARY SCHEDULES
Effective July 1, 2026

5.00% COLA
Steps
Position Class A B C D E
City Engineer* 10-750 15,001 15,751 16,539 17,366 18,234 Planning and Development Services Manager* 10-748 13,633 14,315 15,031 15,783 16,572 Chief Building Official 10-525 12,293 12,908 13,553 14,231 14,943 Public Works Superintendent 10-525 12,293 12,908 13,553 14,231 14,943 Economic & Community Vitality Manager 10-525 12,293 12,908 13,553 14,231 14,943 Senior Planner 10-724 10,782 11,321 11,887 12,481 13,105 Associate Engineer 10-746 10,626 11,157 11,715 12,301 12,916 Assistant City Clerk 10-725 10,070 10,574 11,103 11,658 12,241 Communications Specialist 10-725 10,070 10,574 11,103 11,658 12,241 Senior Management Analyst 10-725 10,070 10,574 11,103 11,658 12,241 Housing Coordinator 10-725 10,070 10,574 11,103 11,658 12,241 Public Works Supervisor 10-528 9,555 10,033 10,535 11,062 11,615 Associate Planner 10-729 9,202 9,662 10,145 10,652 11,185 Management Analyst 10-729 9,202 9,662 10,145 10,652 11,185 Recreation Supervisor 10-201 8,964 9,412 9,883 10,377 10,896 Assistant Engineer 10-719 8,598 9,028 9,479 9,953 10,451 Recreation Coordinator* 10-200 6,883 7,227 7,588 7,967 8,365 *Approved Classifications, unbudgeted
Effective July 1, 2027

3.50% COLA
Steps
Position Class A B C D E
City Engineer* 10-750 15,526 16,302 17,117 17,973 18,872 Planning and Development Services Manager* 10-748 14,110 14,816 15,557 16,335 17,152 Chief Building Official 10-525 12,723 13,359 14,027 14,728 15,464 Public Works Superintendent 10-525 12,723 13,359 14,027 14,728 15,464 Economic & Community Vitality Manager 10-525 12,723 13,359 14,027 14,728 15,464 Senior Planner 10-724 11,159 11,717 12,303 12,918 13,564 Associate Engineer 10-746 10,998 11,548 12,125 12,731 13,368 Assistant City Clerk 10-725 10,422 10,943 11,490 12,065 12,668 Communications Specialist 10-725 10,422 10,943 11,490 12,065 12,668 Senior Management Analyst 10-725 10,422 10,943 11,490 12,065 12,668 Housing Coordinator 10-725 10,422 10,943 11,490 12,065 12,668 Public Works Supervisor 10-528 9,889 10,383 10,902 11,447 12,019 Associate Planner 10-729 9,524 10,000 10,500 11,025 11,576 Management Analyst 10-729 9,524 10,000 10,500 11,025 11,576 Recreation Supervisor 10-201 9,278 9,742 10,229 10,740 11,277 Assistant Engineer 10-719 8,899 9,344 9,811 10,302 10,817 Recreation Coordinator* 10-200 7,124 7,480 7,854 8,247 8,659 *Approved Classifications, unbudgeted
433
30 Effective July 1, 2028

3.25% COLA
Steps
Position Class A B C D E
City Engineer* 10-750 16,031 16,833 17,675 18,559 19,487 Planning and Development Services Manager* 10-748 14,569 15,297 16,062 16,865 17,708 Chief Building Official 10-525 13,137 13,794 14,484 15,208 15,968 Public Works Superintendent 10-525 13,137 13,794 14,484 15,208 15,968 Economic & Community Vitality Manager 10-525 13,137 13,794 14,484 15,208 15,968 Senior Planner 10-724 11,522 12,098 12,703 13,338 14,005 Associate Engineer 10-746 11,356 11,924 12,520 13,146 13,803 Assistant City Clerk 10-725 10,761 11,299 11,864 12,457 13,080 Communications Specialist 10-725 10,761 11,299 11,864 12,457 13,080 Senior Management Analyst 10-725 10,761 11,299 11,864 12,457 13,080 Housing Coordinator 10-725 10,761 11,299 11,864 12,457 13,080 Public Works Supervisor 10-528 10,211 10,722 11,258 11,821 12,412 Associate Planner 10-729 9,834 10,326 10,842 11,384 11,953 Management Analyst 10-729 9,834 10,326 10,842 11,384 11,953 Recreation Supervisor 10-201 9,580 10,059 10,562 11,090 11,645 Assistant Engineer 10-719 9,189 9,648 10,130 10,637 11,169 Recreation Coordinator* 10-200 7,356 7,724 8,110 8,516 8,942 *Approved Classifications, unbudgeted
Effective July 1, 2029

3.25% COLA
Steps
Position Class A B C D E
City Engineer* 10-750 16,553 17,381 18,250 19,163 20,121 Planning and Development Services Manager* 10-748 15,043 15,795 16,585 17,414 18,285 Chief Building Official 10-525 13,564 14,242 14,954 15,702 16,487 Public Works Superintendent 10-525 13,564 14,242 14,954 15,702 16,487 Economic & Community Vitality Manager 10-525 13,564 14,242 14,954 15,702 16,487 Senior Planner 10-724 11,897 12,492 13,117 13,773 14,462 Associate Engineer 10-746 11,726 12,312 12,928 13,574 14,253 Assistant City Clerk 10-725 11,111 11,667 12,250 12,863 13,506 Communications Specialist 10-725 11,111 11,667 12,250 12,863 13,506 Senior Management Analyst 10-725 11,111 11,667 12,250 12,863 13,506 Housing Coordinator 10-725 11,111 11,667 12,250 12,863 13,506 Public Works Supervisor 10-528 10,543 11,070 11,624 12,205 12,815 Associate Planner 10-729 10,154 10,662 11,195 11,755 12,343 Management Analyst 10-729 10,154 10,662 11,195 11,755 12,343 Recreation Supervisor 10-201 9,892 10,387 10,906 11,451 12,024 Assistant Engineer 10-719 9,488 9,962 10,460 10,983 11,532 Recreation Coordinator* 10-200 7,596 7,976 8,375 8,794 9,234 *Approved Classifications, unbudgeted
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31 EXHIBIT B

1. Orientation
a. The City will provide ten (10) calendar days advanced notice to the appropriate bargaining representative of the time, date, and location of the orientation of any new, represented employee. b. The applicable bargaining representative will be given 30- minutes at the beginning of the orientation meeting for no more than one (1) representative to meet in a room designated by the City to present union or association membership information. c. The City will provide 30 minutes of Release Time to the representative presenting the membership information during the scheduled orientation. The applicable union or association shall provide the representative's immediate supervisor with the representative's name at least five (5) days prior to the orientation. The representative shall be released for this purpose unless unusual operation needs interfere with such release in which case the representative's immediate supervisor will provide a written explanation of why release could not be approved. If the representative is not released due to department operational needs, the representative may arrange an alternative date and time to meet with the newly hired employee within the first four (4) weeks of employment, subject to the 30-minutes orientation and Release Time requirements as stipulated above. d. In the event the union or association, as applicable, does not want to be present at the orientation but rather provide something in a written format, the representative will be responsible for delivering this written information to the new employee.

2. Information Provided to Association
a. On a quarterly basis (March, June, September, and December), the City will provide to the exclusive bargaining representative a digital file via email to an email address designated by the union or association as applicable. The City will provide the following information with respect to employees represented by a particular exclusive bargaining representative, to the extent the City has it on file:
• Name.
• Job Title.
• Department.
• Work Location.
• Home telephone number.
• Home address.
• Personal cellular telephone number.
• Work telephone number.
• Personal email addresses on file with the City.

The City's existing employee database does not maintain personal cell phone numbers, personal cell phone numbers or personal email addresses. Notwithstanding the foregoing, limited to the express purpose of the requirements of Government Code section 3558 only, an employee may opt out via written request to the City (below), with copy sent to applicable exclusive bargaining representative, to direct the City to withhold disclosure of the employee's home address, home telephone number, personal cellular telephone number, and personal email address. ______________________________________________________________________________ 435
32 EMPLOYEE WAIVER OF PERSONAL

INFORMATION RELEASE
I, _________________________ understand that California Government Code Sections 3555- 3559 requires the City of Half Moon Bay ("City") to release certain contact information to the employee bargaining unit exclusive representative in furtherance of communication between employees and their exclusive bargaining representative.

I hereby direct the City to NOT release my confidential and personal information (home address, personal home telephone number, personal cellular telephone number, personal email address) to the exclusive bargaining representative at this time.

I may authorize release of this confidential and personal information at a future date of my own accord, and at that time will so direct the City in writing that it may release that information to the exclusive bargaining representative.
___________________________________ ___________________ Employee Signature Date

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33 EXHIBIT C

GRIEVANCE PROCEDURES
Purpose of Grievance Procedure
The grievance procedure shall be used to resolve any dispute which may arise concerning the interpretation, application, or violation of the express terms of an applicable, ratified Memorandum of Understanding (MOU), any written rules, regulations and/or policies, City Council resolutions and/or ordinances now in effect or as may from time to time be adopted that affect the wages, hours or other conditions of employment with the City. The grievance procedure shall not be used for:
a) The resolution of any complaint concerning any disciplinary action; b) The resolution of any complaint relating to any concerted refusal to work.

Any provisions of this grievance process in conflict with a ratified MOU shall be governed by the MOU.

Informal Discussion of Grievance
When an employee has a complaint, the employee shall first informally discuss the matter with the employee's immediate supervisor within ten (10) working days from the date of the incident or decision generating the grievance. If, after a discussion with the immediate supervisor, the complaint has not been satisfactorily resolved, the employee shall have the right to discuss the complaint informally with the supervisor's immediate superior, within five (5) working days from the discussion with the immediate supervisor. If, after such a discussion, the complaint has not been satisfactorily resolved, the employee shall have the right to file a formal grievance.

Formal Grievance Procedure
The formal grievance procedure shall be comprised of the following:

An employee shall have the right to present a formal grievance, in writing, within five (5) working days after the informal discussion of the grievance with the immediate supervisor or the immediate supervisor's superior. All formal grievances shall state the reasons for the complaint and the employee's suggested solution.

The formal grievance shall be presented to the department director. The department director shall discuss the grievance with the employee and/or the employee's representative. Within ten (10) working days after receipt of the formal grievance, the department director shall render a written decision regarding its merits. The grievance shall be considered resolved and no further review of the subject matter of the grievance shall be permitted under this rule when the employee does not seek further review of the grievance within five (5) working days after receipt of the decision of the department director. Failure of the department director to render a written decision on the grievance within ten (10) working days after receipt of the formal grievance constitutes a decision denying the grievance.
437
34 If the department director's decision does not satisfactorily resolve the complaint, the employee may present the formal grievance to the Personnel Officer within five (5) working days of receipt of the department director’s decision or other denial of the grievance, as applicable. The Personnel Officer shall discuss the grievance with the employee and/or the employee's representative. Within ten (10) working days after meeting with the employee and/or the employee's representative, the Personnel Officer shall render a written decision regarding its merits.

If the Personnel Officer's decision does not satisfactorily resolve the complaint, or if the Personnel Officer fails to respond in writing as provided in Step (c) above, the employee shall have the right to refer the grievance to binding arbitration. Such referral shall be made in writing to the Personnel officer within ten (10) working days of receipt of his/her decision. In the event the Personnel Officer does not provide a written response as provided in Step (c), the employee must refer the grievance to arbitration within ten (10) working days of the deadline for submission of a written response by Personnel Officer under Step (c) (i.e. ten (10) working days after meeting with the employee and the employee’s representative) .

Binding Arbitration
The binding arbitration procedure shall be as follows
The parties may mutually agree upon the selection of the arbitrator or shall jointly request from the State of California Mediation and Conciliation Service a list of seven (7) persons qualified to act as arbitrators. Within ten (10) working days of receipt of said list, the parties shall meet to select the arbitrator. The right to strike the first name shall be determined by lot and the parties shall alternately strike one (1) name from the list until only one (1) name remains. That person shall be the arbitrator.

Unless otherwise agreed to by both parties, expedited arbitration shall be used and shall include:

1. A requirement that the arbitrator selected render a written decision within sixty (60) calendar days of the conclusion of the hearing.

2. No court reporter unless mutually agreed to by all parties.

3. No post hearing briefs unless mutually agreed to by all parties.

The fees and expenses of the arbitrator and the court reporter, if required, shall be shared equally by both parties.

Arbitrator's Decision
The decision of the arbitrator shall be final and binding and shall be limited to the issue or issues involved in the grievance. The arbitrator shall not add to, subtract from, change or modify any provisions of these Personnel Rules, any applicable memorandum of understanding, 438
35 departmental rules or regulations, ordinance, or City Council resolution affecting working conditions and shall be authorized only to apply existing provisions of the applicable documents to the specific facts involved an to interpret only applicable provisions of such documents. The arbitrator’s decision shall constitute the final step within the City’s administrative process.

Reprisals Prohibited
The City shall not institute any reprisals against any employee or any representative resulting from the use of the grievance procedure.

Grievance Preparation Time
An employee submitting a grievance and the employee's representative may use a reasonable amount of time during working hours to prepare for and present the grievance.

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36 EXHIBIT D

DISCIPLINARY PROCEDURES
Disciplinary Action and Causes Therefore
The following discipline section will apply to all employees who are not designated “at-will.” Any provisions in conflict with a ratified Memorandum of Understanding (MOU) shall be governed by the MOU.

Disciplinary action consists of discharge, involuntary demotion, suspension, reduction in salary, written reprimand, or transfer for purposes of punishment. Discipline will not be imposed except upon a showing of cause which may include but shall not be limited to the following:
 Violation of administrative policies and procedures;
 Failure to properly perform assigned duties;
 Theft of City property;
 Insubordination;
 Conviction of a felony, or conviction of a misdemeanor relating to the employee's fitness to perform assigned duties;
 Unauthorized absence from employment;
 Tardiness;
 Failure to maintain satisfactory working relationships with other employees or the public;  Reporting for work, or being at work, under the influence of or in possession of alcohol or non-prescribed controlled substances;
 Improper use of City funds;
 Unauthorized use of City property
 Failure to properly care for City property;
 Dishonesty within the scope of the employee’s work, or Misstatement of material fact;  Failure to maintain any employment qualification;
 Failure to comply with safety standards;
 Other failure of good behavior either during or outside of employment such that the employee's conduct causes discredit to the City.

Disciplining Authority
The department director or their designee, who shall be within the same department, shall have the responsibility to institute disciplinary action, to schedule and conduct any pre disciplinary conference and to recommend the imposition of disciplinary action.

Notice of Discipline
Prior to recommending the imposition of any disciplinary action, the department director or their designee, who shall be within the same department, shall notify the employee, in writing, of the nature of the proposed disciplinary action and its proposed effective date, the reason for the proposed disciplinary action, any specific charges against the employee, the employee's right to receive copies of the written documents and materials upon which the proposed disciplinary action is based and , the employee's right to respond to the charge, either orally or 440
37 in writing, and a statement advising the employee of the right to Union representation, when applicable.

Representation
If an employee requests or is required to meet with a department director or supervisor and such meeting involves the possible imposition of disciplinary action against the employee, the employee, upon request, shall be entitled to have one representative present at such meeting.

Emergency Suspension
When a department director determines that an employee's conduct threatens or has caused injury to persons or property, the department director may impose a suspension with pay against the employee, effective immediately, until a pre-disciplinary conference is conducted pursuant to the personnel rules. The imposition of an emergency suspension against an employee does not preclude the department director from proposing a more severe disciplinary action against such employee receiving an emergency suspension.

Within three (3) working days of such emergency suspension, the department director shall notify the employee, in writing, of the nature of any proposed disciplinary action, the reason for the disciplinary action, any specific charge against the employee, the employee's right to receive copies of the documents and materials upon which the disciplinary action is based and the employee's right to respond to the charge, either orally or in writing. The department director, unless otherwise requested by the employee, shall conduct a disciplinary conference in not less than ten (10) working days after the effective date of the emergency suspension.

APPEAL PROCEDURES
Request for Disciplinary Hearing
Employees shall have the right to appeal the imposition of disciplinary action by requesting a hearing before an advisory arbitrator. Any such request shall be in writing, signed by the employee or representative, and presented to the Personnel Officer within ten (10) working days after the effective date of the imposition of the disciplinary action. Further, said request shall identify the subject matter of the appeal, the grounds for the appeal and the relief desired by the employee. If the employee fails to request a disciplinary hearing within the prescribed time, the employee shall have waived the right to a hearing and all rights to further appeal of the disciplinary action.

Scheduling of Disciplinary Hearing
The Personnel Officer shall schedule any disciplinary hearing within a reasonable time after the filing of the employee's request, considering the availability of the advisory arbitrator and the convenience of the employee and the witnesses.

Advisory Arbitrator
The parties may mutually agree upon the selection of the advisory arbitrator or shall jointly request a list of seven (7) persons qualified to act as the advisory arbitrator from by the State of California Mediation and Conciliation Service or similar, mutually agreed upon agency. Within 441
38 ten (10) working days of receipt of said list, the parties shall meet to select the arbitrator. The right to strike the first name shall be determined by lot and the parties shall alternately strike one (1) name from the list until only one (1) name remains. That person shall be the advisory arbitrator.

Expedited Arbitration
Unless otherwise agreed to by both parties, expedited arbitration shall be used and shall include:

1. A requirement that the arbitrator selected render a decision within sixty (60) calendar days of the conclusion of the hearing.

2. No court reporter unless mutually agreed to by all parties.

3. No post hearing briefs unless mutually agreed to by all parties.

Costs
The fees and expenses of the arbitrator and the court reporter, if required, shall be shared equally by both parties.

Decision
The decision of the arbitrator shall be advisory only and constitutes the final step within the City's administrative process.
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Class A B C D E
Exempt - Represented Management
City Engineer* 10-750 15,001 15,751 16,539 17,366 18,234 Planning and Development Services Manager* 10-748 13,633 14,315 15,031 15,783 16,572 Chief Building Official 10-525 12,293 12,908 13,553 14,231 14,943 Public Works Superintendent 10-525 12,293 12,908 13,553 14,231 14,943 Economic & Community Vitality Manager 10-525 12,293 12,908 13,553 14,231 14,943 Senior Planner 10-724 10,782 11,321 11,887 12,481 13,105 Associate Engineer 10-746 10,626 11,157 11,715 12,301 12,916 Assistant City Clerk 10-725 10,070 10,574 11,103 11,658 12,241 Communications Specialist 10-725 10,070 10,574 11,103 11,658 12,241 Senior Management Analyst 10-725 10,070 10,574 11,103 11,658 12,241 Housing Coordinator 10-725 10,070 10,574 11,103 11,658 12,241 Public Works Supervisor 10-528 9,555 10,033 10,535 11,062 11,615 Associate Planner 10-729 9,202 9,662 10,145 10,652 11,185 Management Analyst 10-729 9,202 9,662 10,145 10,652 11,185 Recreation Supervisor 10-201 8,964 9,412 9,883 10,377 10,896 Assistant Engineer 10-719 8,598 9,028 9,479 9,953 10,451 Recreation Coordinator* 10-200 6,883 7,227 7,588 7,967 8,365 *Approved Classifications, unbudgeted
Steps
City of Half Moon Bay
Salary Schedule
Effective July 1, 2026
Monthly Salary Ranges
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RESOLUTION NO. C-2026-

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

COMPENSATION AND BENEFITS PLANS FOR NON-REPRESENTED CONFIDENTIAL EMPLOYEES

AND UNREPRESENTED EXECUTIVE EMPLOYEES AND THE APPLICABLE SALARY SCHEDULES FOR NON-REPRESENTED EMPLOYEES FOR THE PERIOD OF JULY 1, 2026 THROUGH JUNE 30, 2030 WHEREAS, the City of Half Moon Bay has historically provided similar compensation and benefit structures to represented management, non-represented confidential, and unrepresented executive employees; and
WHEREAS, the City Council desires to establish updated compensation, benefits, and other terms and conditions of employment for non-represented confidential employees and unrepresented executive employees for the period of July 1, 2026, through June 30, 2030; and WHEREAS, the proposed compensation and benefits plans are intended to support employee recruitment and retention while maintaining fiscal sustainability; and WHEREAS, the City Council also desires to approve the applicable salary schedules for non-represented confidential, unrepresented executive, and part-time non-represented classifications, including the applicable cost-of-living adjustments; and WHEREAS, the City Council has reviewed the proposed compensation and benefits plans and applicable salary schedules and finds that their approval is in the best interests of the City and its employees.

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

1. Approves the Compensation and Benefits Plan for Non-Represented Confidential Employees for the period of July 1, 2026, through June 30, 2030, attached as Exhibit A.

2. Approves the Compensation and Benefits Plan for Unrepresented Executive Employees for the period of July 1, 2026, through June 30, 2030, attached as Exhibit B.

3. Approves the applicable salary schedules for non-represented confidential, unrepresented executive, and part-time non-represented classifications, attached as Exhibit C, effective as provided therein.

I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 18th day of August 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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1 City of Half Moon Bay
Non-represented
Confidential Employees
Compensation and Benefits Plan
July 1, 2026 – June 30, 2030
446
2 TABLE OF CONTENTS
Section Page No.

Purpose 1
Purpose 1.1 4
Application 2
Application 2.1 4
Probationary Period 2.1 5
Compensation 3
Compensation 3.1 5
Salary at Initial Appointment 3.2 5
Acting Pay 3.3 6
Out of Class Pay 3.4 6
Salary on Promotion 3.5 6
Bilingual Compensation 3.6 6
Notary Public Services Pay 3.7 7
Supplemental Benefits 4
Vacation and Administrative Leave Payoff 4.1 7
Sick Leave Payoff 4.2 9
Reimbursement for Use of Technology 4.3 9
Service Recognition 4.4 9
Mileage 5
Mileage 5.1 10
Educational Training Incentive Program 6
Educational Reimbursement 6.1 10
Health and Welfare 7
Medical, Dental, & Vision Insurance 7.1 11
Eligibility 7.1.A 11
Medical Insurance Benefits 7.1.B 11
Cafeteria Plan 7.1.C 11
Flexible Spending Accounts 7.1.D 13
Life and AD & D Insurance 7.2 14
Disability Coverage 7.3 14
Deferred Compensation 7.4 14
Retirement 7.5 14
Holidays 8
Recognized Holidays 8.1 15
City Hall Closure 8.2 17
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3 Leaves 9
Vacation Leave 9.1 18
Sick Leave 9.2 19
Industrial Accident Leave 9.3 19
Bereavement Leave 9.4 20
Jury Duty 9.5 20
Court Leave 9.6 20
Military Leave 9.7 21
Administrative Leave 9.8 21
Leave Accounting 9.9 21
Layoff Notification 10
Layoff Notification & Severance 10.1 21
Miscellaneous Provisions 11
Performance Evaluations 11.1 24
Letters of Reprimand 11.2 24
Alternate Work Schedule 11.3 24
Exhibit A – Salary Schedule 25

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4 SECTION 1

PURPOSE

1.1 Purpose
To establish a program and guidelines for non-represented confidential employee compensation and benefits pursuant to the following goals and objectives:
• Establish a payment of non-represented confidential employees that results in appropriate salary-contribution relationships and competitive salary rates.
• Recognize the distinct character of non-represented confidential employees as opposed to grouping them with other employees for compensation purposes.
• Promote a firm commitment of non-represented confidential employees to the goals and objectives of the City Council and City Manager.
• Establish a system where salary serves as an effective device for promoting better job performance.
• Promote the further identification of the non-represented confidential employees and understanding of associated roles and responsibilities.

SECTION 2

APPLICATION

2.1 Application
This plan shall apply to the following non-represented confidential employees:
• Administrative Services Manager
• City Clerk
• Executive Assistant to the City Manager
• Finance Manager
• Management Analyst/Project Manager assigned to the Human Resources Department
• Senior Accountant
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5 2.2 Probationary Period
Non-represented confidential employees shall have a one-year probationary period.

SECTION 3

COMPENSATION

3.1 Compensation
Effective the first full pay period on or after July 1, 2026, the base wages for represented classifications shall be increased by a cost-of-living adjustment of five percent (5.0%). In addition, there shall be a one-time, non-pensionable lump sum payment of $2,500 to each bargaining unit member at the time of ratification and following the Council’s approval of a successor MOU.

Effective the first full pay period on or after July 1, 2027, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three-and-a-half percent (3.50%).

Effective the first full pay period on or after July 1, 2028, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

Effective the first full pay period on or after July 1, 2029, the base wages for represented classifications shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

The City will impose a “me too” if any other bargaining unit extends a contract with a cost-of-living increase and cafeteria plan increase higher than what is being established in this four (4) year agreement. The City Manager may propose to the City Council an equal to or greater increase, but the contract term should also remain equal to the comparable bargaining unit.

3.2 Salary at Initial Appointment
Salary for Non-represented Confidential employees at initial appointment is at the discretion of the City Manager and shall be based upon the qualifications of the candidate.

Other benefits and adjustments to this benefits and compensation contract may be implemented in a side letter agreement at the time of employment or possibly during other terms of employment and/or termination.
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6 3.3 Acting Pay
Upon approval of the City Manager, an employee may be assigned acting duties of a position having a higher salary range. The employee must be assigned in writing to perform the full scope of duties as specified in the job description of the higherlevel position for at least five (5) consecutive business days. Employees will be paid the minimum step in the new range that provides at least a five percent (5%) increase over his/her current salary for the entire period of the acting assignment. At the discretion of the City Manager, intermittent acting pay may be approved when an employee is assigned to periodically perform acting duties for more than five (5) total days over a designated period of time.

3.4 Out of Class Pay
Employees shall be eligible for out of class pay equal to five percent (5.0%) over the employee’s current base salary when, because of turnover in supervisory or management personnel, they are assigned in writing to perform major duties normally performed in those higher-level positions while the positions are vacant, and for up to ten (10) working days’ time after they are filled.

3.5 Salary on Promotion
Any employee who is promoted to a position having a higher salary range shall receive the minimum step in the new range that provides for no less than a five percent (5%) increase.

If an employee is eligible for a merit step increase on the same date a promotion is to be effective, the step increase shall be granted before the promotion.

3.6 Bilingual Compensation
Employees who meet the criteria below, as determined by the Human Resources Division (hereafter “HR”), shall be entitled to receive a bilingual pay differential of:
• Two and a half percent (2.5%) per month of employee’s base salary for employees certified in oral skills;
• Two and a half percent (2.5%) per month of employee’s base salary for employees certified in written skills;
• Two and a half percent (2.5%) per month of employee’s base salary for employees certified in simultaneous translation skills.

Criteria - Employees can receive bilingual compensation if:
• The employee successfully passes such language proficiency/fluency test as may be selected by HR, including such periodic retesting as HR determines may be appropriate. If an employee does not pass the
451
7 test, HR will provide the employee with one additional retest in a fiscal year. • The duties currently assigned to the employee and/or currently being performed by the employee require utilization of a non-English language on a regular basis.

The City reserves the right to determine the number, timing, location, and duration of the assignments receiving the additional pay provided herein and which languages are needed. Any employee who is receiving Bilingual Pay may be asked to utilize his/her bilingual skills at any time while on duty in his/her own division/department or by supervisor in any other division/department. An employee who is not receiving Bilingual Pay will not be asked to use bilingual skills, except in isolated circumstances where no employee receiving such pay is available; in that limited situation an employee may be asked to utilize such skills.

3.7 Notary Public Services Pay
The City will pay a two and one-half percent (2.5%) wage differential to an employee who is assigned in writing and is required to perform notary functions for the City. No employee shall be asked to perform notary services for the City if she/he is not assigned in writing.

SECTION 4

SUPPLEMENTAL BENEFITS

In addition to the payment available upon separation, permanent employees may, with the approval of the City Manager, receive an annual payment in exchange for earned vacation or administrative leave up to one hundred and sixty hours (160) total in any given calendar year payable during the month of March or November (“pay-inlieu hours”), subject to the following provisions.

An employee who fails to elect by December 31 each year or by the preceding Friday if December 31 falls on a Saturday or Sunday, to participate in the pay-in-lieu hours 452
8 for the following year will be deemed to have elected not to participate and they will be prohibited from receiving any pay-in-lieu hours during that year except as, and only to the extent, permitted under the emergency provisions below.

Otherwise, the amount to be cashed out will be based on the number of hours available at the time of the sell back payment.

 When pay-in-lieu is cashed out, it will be paid based on the employee's rate of pay at the time it is paid. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions.  Existing caps on the accrual of vacation or administrative leave will remain in effect.
 In the event of an unforeseeable emergency, as defined below, an employee may apply to receive pay-in-lieu hours, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If Human Resources approves an employee's application, the City will pay the employee the pay-in-lieu amount it deems necessary to meet the emergency need. "Unforeseeable emergency" means a severe financial hardship of the employee resulting from an illness or accident of the employee, the employee's spouse, or the employee's dependent (as defined in Internal Revenue Code section 152, and, without regard to Internal Revenue Code sections 152(b)(1), (b)(2), and (d)(l)(B)); loss of the employee's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, such as damage that is the result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a direct result of events beyond the control of the employee.

For example, the imminent foreclosure or eviction from the employee's home may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency. Finally, the need to pay for the funeral expenses of a spouse or dependent (as defined in Internal Revenue Code section 152, and, without regard to Internal Revenue Code sections 152(6)(1), (6)(2), and (d)(l)(B)) of the employee may also constitute an unforeseeable emergency. 453
9 Neither the purchase of a home nor the payment of college tuition is an unforeseeable emergency.

In order to be eligible for this cash out, the employee must have at least forty (40) hours of accrued vacation time remaining in their vacation bank after the cash out.

4.2 Sick Leave Payoff
Upon separation from the City, employees with a minimum of five (5) years of service, but less than ten (10) years of service, shall receive reimbursement for twenty-five percent (25%) of their accrued sick leave with a cap of Twenty-Five Hundred Dollars ($2,500.00). Employees with a minimum of ten (10) years of service, but less than twenty (20) years of service, shall receive reimbursement equal to twenty-five percent (25%) of accrued sick leave with no cap. Employees with a minimum of twenty (20) years of service shall receive reimbursement equal to forty percent (40%) of accrued sick leave with no cap.

4.3 Reimbursement for Use of Technology
If an employee is required by his or her supervisor to use his or her personal cell phone, tablet, computer or other technology in the course of City business, the City will provide a technology stipend of one hundred dollars ($100) per month.

4.4 Service Recognition
The City shall make service recognition awards as follows:
• Employees with at least seven years and less than fourteen years of full-time Half Moon Bay City-service shall receive an annual payment of $700 in the pay period following their anniversary date.
• Employees with at least fourteen years and less than twenty-one years of full-time Half Moon Bay City-service shall receive an annual payment of $1,400 in the pay period following their anniversary date. 454
10 • Employees with at least twenty-one years full-time Half Moon Bay Cityservice shall receive an annual payment of $2,100 in the pay period following their anniversary date.

SECTION 5

MILEAGE

EDUCATIONAL TRAINING INCENTIVE PROGRAM

6.1 Educational Reimbursement
The City shall reimburse employees for job-related educational classes, certifications, professional memberships, conferences, workshops, or seminars, conditioned upon prior approval of the City Manager or their designee in the amounts set forth below. Eligible classes, certifications, professional memberships, workshops, conferences, and seminars must:
• Relate to and be beneficial for the work of the employee’s current City position or occupation; or
• Satisfy a continuing education requirement of the employee’s current City position; or
• Prepare the employee for advancement/promotion to positions of greater responsibility within the City.

Under this section, employees may also request reimbursement of payments made towards student loans.

Employees who have completed less than two (2) years of service with the City may be reimbursed up to a maximum amount of One Thousand Five Hundred Dollars ($1,500) per calendar year, per employee.
455
11 Employees who have completed two or more years of service with the City may be reimbursed up to an additional One Thousand Five Hundred Dollars ($1,500), for a total maximum reimbursement of Three Thousand Dollars ($3,000) per calendar year, per employee. This additional $1,500 may only be applied towards reimbursement for job-related degrees from accredited educational institutions or repayment of student loans.

The City does not make any representations as to the tax treatment of this benefit.

SECTION 7

HEALTH AND WELFARE

7.1 Medical, Dental and Vision Insurance
A. Eligibility
All regular employees of the City eligible for PERS medical membership shall be eligible to enroll in the health and welfare benefits provided by this Section and currently authorized for this bargaining unit. Eligible dependents of a regular employee eligible for PERS medical membership shall be permitted to participate in any health and welfare benefit provided in this Section to the extent authorized by the benefit plan.

B. Medical Insurance Benefits
The City will contract with the California Public Employees Retirement System (CalPERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits.

The City will pay the minimum employer contribution required under Public Employees Medical and Hospital Care Act (PEMHCA) for each eligible active employee towards the purchase of medical insurance.

C. Cafeteria Plan
The City will maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.

The City will provide a Cafeteria Plan Allowance to all employees eligible to participate in City-sponsored health and welfare benefits. 456
12 Health Benefit Structure – Employees Hired On or After July 1, 2026 Employees originally hired on or after July 1, 2026 shall participate in the health benefit structure described below. Employees hired on or before June 30, 2026 shall continue to receive the health benefit structure in effect prior to July 1, 2026, unless they irrevocably elect to participate in the post-July 1, 2026 health benefit structure.

For calendar year 2026, the City agrees to provide the following maximum monthly contribution toward medical insurance premiums for employees eligible to participate in City sponsored health and welfare benefits. Based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), the City shall contribute up to the following maximum of for each category for regular full-time employees:
 Subscriber - $1,168.86
 Subscriber + 1 - $2,337.72
 Subscriber +2 - $3,039.04
For example, an employee with no dependents shall be eligible for City contributions at the Subscriber category. An employee with one dependent shall be eligible for City contributions at the Subscriber + 1 category. An employee with family coverage shall be eligible for City contributions at the Subscriber + 2 category.

The City's contribution shall not exceed the actual cost of the selected medical plan.

Any unused portion of the City's contribution shall not be paid to the employee as cash or any other form of compensation.

Employees receiving City contributions to health coverage shall not be eligible for cash back or a difference in premiums of any kind. Employees who decline Citysponsored medical coverage shall not be eligible to receive cash in lieu of benefits.

Employees who enroll in City-sponsored health and welfare benefits will receive the CalPERS Kaiser premium rates as the maximum City contributions based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), subject to the 7.5% annual increase provision as set forth above, The City’s agreement to absorb annual CalPERS Kaiser premium rate increases 457
13 shall be limited to the 2026 – 2030 MOU, and this provision shall automatically sunset upon the expiration of the MOU on June 30, 2030.

The City's contribution for part-time employees shall be pro-rated based on their FTE.

For particulars of coverage, see appropriate pamphlets and contracts.

D. Flexible Spending Accounts
The City will offer a flexible spending account (FSA) program available to employees. Employees may elect to contribute pre-tax dollars towards their FSAs for approved uses under such plan(s). FSA contributions shall not exceed IRS allowable limits.
458
14 7.2 Life Insurance and AD & D Insurance
The City shall provide Life Insurance and Accidental Death and Dismemberment coverage for employees in the amount equal to one (1) times their individual annual base salary.

7.3 Disability Coverage
The City shall provide long-term disability coverage of sixty seven percent (67%) of monthly earnings to a maximum monthly benefit of six thousand dollars ($6,000) after a sixty (60) day elimination period.

7.4 Deferred Compensation
Employees may participate in the City’s voluntary deferred compensation program (457 Plan). Notwithstanding the foregoing, for employees who have completed one year of service with the City, the City will match 50 cents for every dollar that the employee contributes towards their 457 Plan account, up to an employee contribution of six percent (6.0%) of the employee’s salary. For example, if an employee contributes 6.0% or more of their salary towards their 457 Plan account, they will receive a 3.0% match from the City. For employee contributions, the City will make payroll deductions and transmit funds to the administrator. The City makes no representation on the merit of the plan or any of the investment products or instruments, which may be offered by the plan. The individual participant is responsible for evaluating the investment options within the plan. The City currently contracts with the ICMA-RC and CalPERS to provide a 457 program.

7.5 Retirement
The City will provide the following benefits to employees who do not meet the definition of “new member” as set forth in Government Code Section 7522.02(f):
a. Employer Paid Member Contribution (EPMC) – Effective July 1, 2013, employees will be required to pay seven percent (7%) of the member contribution; b. 2% @ 55 Retirement option;
c. One-Year final compensation;
d. Unused Sick Leave Conversion for Retirement Service Credit – Retiring employees, defined as employees who request retirement payments from PERS within 120 days from separation from service, may convert unused sick leave to service credits to the maximum allowed by CalPERS. This provision to convert sick leave to service credits is at the option of the employee and, if so selected, is in-lieu 459
15 of any other options available to convert sick leave to cash upon separation that the Compensation and benefits plan may provide;
e. Employer Paid Member Contribution (EMPC) converted to pay rate during the final compensation period.

Retirement benefits of employees who on or after January 1, 2013 became members of CalPERS or a retirement system that has reciprocity with CalPERS shall conform to the requirements of the California Public Employees’ Pension Reform Act of 2013, Gov. Code § 7522 et seq., as may be amended.

The City will provide the following retirement benefits to all employees:
a. 1959 Survivor Benefit – 3rd Level.
b. Military Service Credit (Statutes of 1976) – The employee, at the employee’s expense, may purchase Military Service Credits.
c. Pre-retirement Option 2W Death Benefit.

SECTION 8

HOLIDAYS

8.1 Recognized Holidays
All full-time bargaining unit employees are entitled to the following holidays with pay:

New Year’s Day
One day prior to, or following New Year’s Day
Martin Luther King, Jr. Day
President’s Day
Farmworker Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
One day prior to, or following Christmas Day
One Floating Holiday
Part-time employees shall receive holiday pay equivalent to their regularly scheduled hours on the day on which the holiday is observed (for example, if an 460
16 employee is regularly scheduled to work six (6) hours on Mondays, they would receive six (6) hours of holiday pay for any holidays that are observed on a Monday).

For Christmas and New Year’s Holidays the following schedule shall be used to determine the actual days off:

Actual Holiday Holiday Observed Day Before or After Observed Sunday Monday Tuesday
Monday Monday Tuesday
Tuesday Tuesday Monday
Wednesday Wednesday Tuesday
Thursday Thursday Friday
Friday Friday Thursday
Saturday Friday Thursday
461
17 8.2 City Hall Closure:
2026-2027
City Hall will be closed December 28-30, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2026 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2027. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2027-2028
City Hall will be closed December 27-29, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2028 will be granted two (2) floating holidays to be used solely for 462
18 purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2029. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2029-2030
City Hall will be closed December 26-28, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2029 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2030. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.

SECTION 9
LEAVES

9.1 Vacation Leave
Full-time employees are entitled to paid vacation time off which shall accrue at the following rate:
0 through 4 years 8 hours per month
5 through 10 years 10 hours per month
11 through 15 years 12 hours per month
16 through 20 years 14 hours per month
21+ years 15.33 hours per month
The accrual rate for part-time employees shall be pro-rated based on their FTE.

9.2 Sick Leave
Full-time employees shall accrue eight (8) hours of sick leave with pay for each month of service. The accrual rate for part-time employees shall be pro-rated based on their FTE.

Sick leave may be applied to:
a. Absence necessitated by an employee’s personal illness. b. Medical and dental appointments.
c. Purposes specified by the California Healthy
Workplaces/Healthy Families Act. All conditions and restrictions that govern employee use of sick leave shall also apply to the use by an employee to attend to an illness of his/her child, mother, father, mother-in-law, father-in-law, spouse, domestic partner; domestic partner’s mother, father, or child; and any dependent living in the same household as the employee.

Sick Leave incentive: Sixteen (16) hours vacation leave will be awarded contingent upon non-usage of accumulated sick leave (i.e. employee authorized eight (8) additional vacation hours per six (6) months provided sick leave usage does not exceed sixteen (16) hours for that same period).

During the period the employee is paid by the City, the employee shall endorse to the City any temporary disability indemnity benefit payments received as a result of Workers' Compensation insurance coverage. The City will withhold payment of all compensation and benefits provided by this section until it is determined whether the illness or injury is accepted. If the employee's disability caused by illness or injury arising out of and in the course of the employee's employment extends beyond seventy-five (75) calendar days as described above, the employee may integrate his/her unused sick leave, vacation leave, and compensatory time accruals with the Workers' Compensation payments, provided that the sum of all 464
20 Workers' Compensation Temporary Disability Indemnity benefits and paid leave do not exceed the employee's regular rate of pay for said period.

Once sick leave is exhausted, the employee may request an unpaid leave of absence. Such request must be in writing and must include a medical doctor’s estimated date of return to full duty.

9.4 Bereavement Leave
The maximum period of bereavement leave with pay granted to any employee, whether full-time or part-time, for each death in his/her immediate family (immediate family includes and is limited to spouse/registered domestic partner and parents, grandparents, children, grandchildren, and siblings of the employee and/or spouse/registered domestic partner of the employee) shall be three (3) consecutive working days. Bereavement leave with pay granted to an employee for all deaths in his/her immediate family shall not exceed five (5) working days during any twelve (12) month period except by special action of the City Council for good cause shown, except that an additional day will be granted in each case where the death takes place outside the State of California.

9.5 Jury Duty
A regular employee who is summoned for attendance to any court for jury duty will promptly inform his or her supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel time).

9.6 Court Leave
Each employee of the City who is required, under subpoena, to take time off duty with the City, to appear as a witness, by reason of their employment with the City, before any court, arbitrator, or tribunal, shall receive their regular salary during the time of their service as a witness under subpoena, less any and all witness fees which the employee may receive. Compensation will not be paid if the employee is a party to the action and is in a position adverse to the City. Upon service of 465
21 subpoena, an employee shall immediately advise their supervisor thereof, and of the time when the employee is required to appear in Court in response thereto.

9.7 Military Leave
The City shall grant military leave in accordance with the California Military and Veterans Code.

9.8 Administrative Leave
In addition to vacation leave, employees shall accrue eight (8) hours of administration leave per month. A department head may recommend to the City Manager that up to an additional 12 hours of administrative leave per fiscal year be authorized in recognition of unanticipated efforts that were not contemplated in the established monthly allocation. The City Manager has full discretion in deciding whether to grant additional leave for any employee.

9.9 Leave Accounting
FLSA exempt employees who work less than regularly scheduled hours in a bimonthly pay period must submit a leave request form and use accrued leaves to make up the difference between actual hours worked and the “normal” work hours in a bi-monthly pay period. For the purpose of this section, attendance at City meetings or training outside the regularly scheduled work hours shall not count as hours worked.

Preauthorization for a change in the regular work schedule must be obtained from the Department Head.

SECTION 10

LAYOFF NOTIFICATION

10.1 Layoff Notification & Severance
The appointing authority may lay off employees or demote employees in lieu of layoff subject to the following conditions:
466
22 (a) Whenever in the judgment of the City Council it becomes necessary, in the interest of economy or because the necessity for the position or an employment involved no longer exists, the City Council may abolish any position or employment in the competitive service and lay off, demote or transfer an employee holding such position or employment without filing written charges and without the right to appeal.
(b) Seniority shall be observed in effecting such reduction in personnel, and the order of layoff shall be in the reverse order of total cumulative time served in the City's service upon the effective date of the layoff. Layoff shall be made within classes of positions, and all provisional employees in the affected class or classes shall be laid off prior to the layoff of any probationary or regular employee.
(c) Whenever seniority is equal, the seniority of the employee shall be determined first by examining total cumulative service within the affected classification and, if not determinative, then by position on the employment list.
(d) Length of cumulative service is interpreted to be total time spent in the employ of the City, including all days of attendance at work, approved leaves of absence whether earned or specially authorized, and time served on military leave of absence but shall not include unauthorized absences, time spent between employment with the City, suspensions, layoffs or any other time when the employee was not actively engaged at work. (e) The City shall notify in writing those employees to be laid off at least ten (10) calendar days prior to the effective date of any such layoff by hand delivery of Certified Mail. If notice is sent by Certified Mail, it shall be sent to the employee’s address on file with Human Resources. The notice shall include the action to be taken, options available to the employee (if applicable), and information regarding reemployment rights.

In the event an employee is laid off for reasons not related to contracting out for services, employees to be laid off shall receive a minimum of 120 hours of base pay upon separation from employment.

In the event an employee is laid off as a direct result of the City contracting out for services, and the employee is not offered alternate employment at the City or the entity to which services are outsourced, the City will pay the employee six (6) months of severance pay at the employee’s final City base pay rate upon separation in consideration for the employee’s release of any and all claims.
467
23 An employee who: (a) declines to apply for alternate employment with the entity with whom the City contracts for services; or (b) declines an offer of employment with a salary of at least eighty-five percent (85%) of the employee’s City base salary, from the entity with whom the City contracts; or (c) retires upon separation, will not be eligible for severance pay.

Employees laid off from higher-ranking classifications shall have the option, if qualified, to job classifications in the same job series. In addition, such employees shall have the option, if qualified subject to the City’s personnel rules, to demote to vacancies in equal or lower rated job classifications outside the job series. If applicable, an employee shall be notified of option(s) in the notice of layoff and shall have ten (10) calendar days to notify the City if they elect to accept the option presented. (f) If an employee is demoted in lieu of layoff, the appointing authority shall assign the employee to the pay rate in the pay range for the new classification that least reduces the employee's prevailing pay rate immediately prior to the demotion.
(g) The names of persons laid off or demoted in accordance with these rules shall be entered upon a reemployment list. Such list shall be used when a vacancy arises in the same or lower class of position. When a vacancy occurs in a job classification for which a reemployment list exists, the eligible person(s) on the reemployment list shall be recalled in the inverse order of layoff. When an employee is to be recalled, notice shall be sent to the employee’s address on file with Human Resources. It is the employee’s responsibility to inform the City of his/her current address and phone number. The City has no responsibility to attempt to locate a person on a reemployment list if a notice of reinstatement is returned undeliverable.

The recalled employee shall have fourteen (14) calendar days to respond to the City from the date of mailing of the reemployment notice. If an employee fails to respond within fourteen (14) calendar days of the mailing of the notice of reemployment or refuses reemployment; he/she shall lose all reemployment rights and his/her name shall be removed from the reemployment list. Employees reemployed pursuant to this section, shall receive credit for former employment in computing salary, vacation, and other benefits.
(h) Names of persons laid off shall be carried on a reemployment list for twelve (12) months, except that persons appointed to regular positions of the same level as that which laid off, shall, upon such appointment, be 468
24 removed from the list. Persons reemployed in a lower class, or on a temporary basis, shall be continued on the list for the higher position for the twelve (12) month period.
(i) The City shall provide laid off employees with job search assistance for forty-five (45) days following the effective date of layoff. The assistance shall include career counseling, resume preparation, and job search assistance.
(j) An employee that retires instead of being laid off may not be eligible for reinstatement.

SECTION 11

MISCELLANEOUS PROVISIONS

11.1 Performance Evaluations
Each employee shall receive a written annual performance review within thirty (30) calendar days of the end of his/her evaluation period. The review shall include information regarding employee performance and objectives for the next evaluation period. Within fourteen (14) calendar days of receipt of the evaluation, an employee may provide written comments regarding the evaluation, which will be attached to the evaluation and placed in the employee’s personnel file.

11.2 Letters of Reprimand
Each employee shall receive a copy of any letter of reprimand and/or written warning prior to placement of such document in his/her personnel file. Within fourteen (14) calendar days of receipt of written reprimand and/or warning, an employee may provide written comments, which will be attached to the written reprimand and/or warning and placed in the employee’s personnel file. Letters of reprimand and/or written warning are not subject to the grievance or appeal of discipline procedures. An employee may request that letters of reprimand and/or written warning be removed from their personnel file two years following the date of reprimand or written warning. The decision to remove a reprimand or written warning from an employee personnel file is at the discretion of the City and is not subject to appeal or grievance.

11.3 Alternate Work Schedule
Employees may request approval for alternate work schedules or to telecommute from their department head. Such requests shall be considered consistent with applicable City policy. It is understood that the schedule must be such that city operations must stay open Monday through Friday. 469

EXHIBIT A
Salary Schedules
Effective July 1, 2026
5% COLA
Steps
Position Class A B C D E
Finance Manager 10-485 12,408 13,028 13,679 14,363 15,081 City Clerk 10-525 12,293 12,908 13,553 14,231 14,943
Administrative Services Manager * 10-525 12,293 12,908 13,553 14,231 14,943 Senior Accountant* 10-721 10,314 10,830 11,372 11,941 12,538 Management Analyst - Human Resources 10-715 9,202 9,662 10,145 10,652 11,185 Executive Assistant to the City Manager 10-745 7,809 8,199 8,609 9,039 9,491 *Approved Classifications, unbudgeted
Effective July 1, 2027

3.50% COLA
Steps
Position Class A B C D E
Finance Manager 10-485 12,842 13,484 14,158 14,866 15,609 City Clerk 10-525 12,723 13,359 14,027 14,728 15,464
Administrative Services Manager * 10-525 12,723 13,359 14,027 14,728 15,464 Senior Accountant* 10-721 10,675 11,209 11,769 12,357 12,975 Management Analyst - Human Resources 10-715 9,524 10,000 10,500 11,025 11,576 Executive Assistant to the City Manager 10-745 8,082 8,486 8,910 9,356 9,824 *Approved Classifications, unbudgeted
Effective July 1, 2028

3.25% COLA
Steps
Position Class A B C D E
Finance Manager 10-485 13,260 13,923 14,619 15,350 16,118 City Clerk 10-525 13,137 13,794 14,484 15,208 15,968
Administrative Services Manager * 10-525 13,137 13,794 14,484 15,208 15,968 Senior Accountant* 10-721 11,022 11,573 12,152 12,760 13,398 Management Analyst - Human Resources 10-715 9,834 10,326 10,842 11,384 11,953 Executive Assistant to the City Manager 10-745 8,345 8,762 9,200 9,660 10,143 *Approved Classifications, unbudgeted
Effective July 1, 2029

3.25% COLA
Steps
Position Class A B C D E
Finance Manager 10-485 13,691 14,376 15,095 15,850 16,643 City Clerk 10-525 13,564 14,242 14,954 15,702 16,487
Administrative Services Manager * 10-525 13,564 14,242 14,954 15,702 16,487 Senior Accountant* 10-721 11,381 11,950 12,548 13,175 13,834 Management Analyst - Human Resources 10-715 10,154 10,662 11,195 11,755 12,343 Executive Assistant to the City Manager 10-745 8,617 9,048 9,500 9,975 10,474 *Approved Classifications, unbudgeted
470
1 City of Half Moon Bay
Unrepresented ExecuƟve Employees
CompensaƟon and Benefits Plan
July 1, 2026 – June 30, 2030

471
2 TABLE OF CONTENTS
SecƟon Page No.

Purpose 1.1 4
ApplicaƟon 2.1 4
CompensaƟon 3
CompensaƟon 3.1 5
Salary at IniƟal Appointment 3.2 5
Salary Advancement Within Range 3.3 6
AcƟng Pay 3.4 6
Supplemental Benefit 4
VacaƟon and AdministraƟve Leave Payoff 4.1 6
Sick Leave Payoff 4.2 8
Reimbursement for Use of Technology 4.3 8
Service RecogniƟon 4.4 8
Auto Allowance 5.1 9
EducaƟonal Training IncenƟve Program 6
EducaƟonal Reimbursement 6.1 9
Health and Welfare 7
Medical, Dental, & Vision Insurance 7.1 10
Eligibility 7.1.A 10
Medical Insurance Benefits 7.1.B 10
Cafeteria Plan 7.1.C 10
Flexible Spending Account 7.1.D 12
Life and AD & D Insurance 7.2 12
Disability Coverage 7.3 13
Deferred CompensaƟon 7.4 13
ReƟrement 7.5 13
Holidays 8
Recognized Holidays 8.1 14
Leaves 9
VacaƟon Leave 9.1 15
Sick Leave 9.2 16
Industrial Accident Leave 9.3 16
Bereavement Leave 9.4 17
Jury Duty 9.5 17
Court Leave 9.6 17
Military Leave 9.7 18
AdministraƟve Leave 9.8 18
472
3 TABLE OF CONTENTS
SecƟon Page No.

City Hall Closure 9.9 18
At-Will Status and Severance 10.1 20
Exhibit A – Salary Schedule 21

473
4 SECTION 1

PURPOSE

1.1 Purpose
To establish a program and guidelines for unrepresented execuƟve employee compensaƟon and benefits pursuant to the following goals and objecƟves:
• Establish a payment of unrepresented execuƟve employees that results in appropriate salary-contribuƟon relaƟonships and compeƟƟve salary rates. • Recognize the disƟnct character of unrepresented execuƟve employees as opposed to grouping them with other employees for compensaƟon purposes.
• Promote a firm commitment of unrepresented execuƟve employees to the goals and objecƟves of the City Council and City Manager. • Establish a system where salary serves as an effecƟve devise for promoƟng beƩer job performance.
• Promote the further idenƟficaƟon of the unrepresented execuƟve employees and understanding of associated roles, loyalƟes, and responsibiliƟes.

SECTION 2

APPLICATION

2.1 ApplicaƟon
This plan shall apply to employees in the following unrepresented execuƟve classificaƟons:
• AdministraƟve Services Director
• Assistant City Manager
• Assistant to the City Manager
• CommunicaƟons Director/ City Clerk
• Community Development Director
• Contract Services Manager
• Deputy City Manager
• Finance Director
• Public Works Director
474
5 SECTION 3

COMPENSATION

3.1 CompensaƟon
EffecƟve the first full pay period of or aŌer July 1, 2026, the base wages for represented classificaƟons shall be increased by a cost-of-living adjustment of five percent (5.0%). In addiƟon, there shall be a one-Ɵme, non-pensionable lump sum payment of $2,500 to each bargaining unit member at the Ɵme of raƟficaƟon and following the Council’s approval of a successor MOU.

EffecƟve the first full pay period of or aŌer July 1, 2027, the base wages for represented classificaƟons shall be increased by a cost-of-living adjustment of three-and-a-half percent (3.50%).

EffecƟve the first full pay period of or aŌer July 1, 2028, the base wages for represented classificaƟons shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

EffecƟve the first full pay period of or aŌer July 1, 2029, the base wages for represented classificaƟons shall be increased by a cost-of-living adjustment of three and a quarter percent (3.25%).

The salary rates for all classificaƟons are listed on Appendix A, aƩached hereto.

The City will impose a "me too", if any other bargaining unit extends a contract with a cost-of-living increase and cafeteria plan increase higher than what is being established in this four (4) year compensaƟon and benefits plan. The City Manager may propose to the City Council an equal to or greater increase, but the contract term should also remain equal to the comparable bargaining unit.

3.2 Salary at IniƟal Appointment
Salary at iniƟal appointment is at the discreƟon of the City Manager and shall be based upon the qualificaƟons of the candidate.

Other benefits and adjustments to this compensaƟon and benefits plan may be implemented in a side leƩer agreement at the Ɵme of employment or possibly during other terms of employment and/or terminaƟon.
475
6 3.3 Salary Advancement Within Range
Salary advancement within a range shall be based on merit and performance as determined by the City Manager. Salary advancement within an established range is typically considered at one-year intervals and/or at the Ɵme of a range adjustment. The date of salary review and increase may be advanced or delayed as determined by the City Manager. The decision shall be final without right to appeal.

3.4 AcƟng Pay
Upon approval of the City Manager, an employee may be assigned acƟng duƟes of a posiƟon having a higher salary range. The employee must be assigned in wriƟng to perform the full scope of duƟes as specified in the job descripƟon of the higher-level posiƟon for at least eleven (11) consecuƟve business days and will be paid up to ten percent (10%) more than his/her current salary for the enƟre period of the acƟng assignment.

SECTION 4

SUPPLEMENTAL BENEFIT

4.1 VacaƟon and AdministraƟve Leave Payoff
When an employee is separated from service, he/she shall be enƟtled to a lump sum payment for any unused vacaƟon and administraƟve leave at the Ɵme of separaƟon.

 An employee cannot request the payout of any pay-in-lieu hours until those hours have been earned and accrued. Further, at the time of payment, the 476
7 employee must have the requisite number of hours available and meet the requirements pursuant to the applicable MOU section for sell back. Otherwise, the amount to be cashed out will be based on the number of hours available at the time of the sell back payment.

 When pay-in-lieu is cashed out, it will be paid based on the employee's rate of pay at the time it is paid. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions.
 Existing caps on the accrual of vacation or administrative leave will remain in effect.
 In the event of an unforeseeable emergency, as defined below, an employee may apply to receive pay-in-lieu hours, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If Human Resources approves an employee's application, the City will pay the employee the pay-in-lieu amount it deems necessary to meet the emergency need.
"Unforeseeable emergency" means a severe financial hardship of the employee resulting from an illness or accident of the employee, the employee's spouse, or the employee's dependent (as defined in Internal Revenue Code section 152, and, without regard to Internal Revenue Code sections 152(b)(1), (b)(2), and (d)(l)(B)); loss of the employee's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, such as damage that is the result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a direct result of events beyond the control of the employee.

Neither the purchase of a home nor the payment of college tuition is an unforeseeable emergency.

Pay-in-lieu hours on account of an unforeseeable emergency will not be paid to the extent that such an emergency is or may be relieved through reimbursement 477
8 or compensation from insurance or otherwise, by liquidation of the employee's assets, to the extent liquidation of such assets would not itself cause severe financial hardship. Employees who face an unforeseen emergency and experience the need for an emergency cash out of annual leave are advised to contact Human Resources for a determination, which will be made based on the individualized and specific circumstances presented.

In order to be eligible for this cash out, the employee must have at least forty (40) hours of accrued vacation time remaining in their vacation bank after the cash out.

4.2 Sick Leave Payoff
Upon separaƟon from the City, employees with a minimum of five (5) years of service, but less than ten (10) years of service, shall receive reimbursement for twenty-five percent (25%) of their accrued sick leave with a cap of Twenty Five Hundred Dollars ($2,500.00).

Employees with a minimum of ten (10) years of service, but less than twenty (20) years of service, shall receive reimbursement equal to twenty-five percent (25%) of accrued sick leave with no cap. Employees with a minimum of twenty (20) years of service shall receive reimbursement equal to forty percent (40%) of accrued sick leave with no cap.

4.4 Service RecogniƟon
The City shall make service recognition awards as follows:
• Employees with at least seven years and less than fourteen years of full-time Half Moon Bay City-service shall receive an annual payment of $700 in the pay period following their anniversary date.
• Employees with at least fourteen years and less than twenty-one years of full-time Half Moon Bay City-service shall receive an annual payment of $1,400 in the pay period following their anniversary date.
• Employees with at least twenty-one years full-time Half Moon Bay City-service shall receive an annual payment of $2,100 in the pay period following their anniversary date.
478
9 The cost of the Service Recognition Program shall be considered part of the total compensation provided to classifications in the bargaining unit and will be incorporated when the City contemplates future adjustments in bargaining unit compensation.

SECTION 5

AUTO ALLOWANCE

5.1 Auto Allowance
Unrepresented execuƟve classificaƟons are eligible to receive a monthly auto allowance of Two Hundred and FiŌy Dollars ($250) per month.

SECTION 6

EDUCATIONAL TRAINING INCENTIVE PROGRAM

6.1 EducaƟonal Reimbursement
The City shall reimburse employees for job-related educaƟonal classes, cerƟficaƟons, professional memberships, conferences, workshops, or seminars, condiƟoned upon prior approval of the City Manager or their designee in the amounts set forth below. Eligible classes, cerƟficaƟons, professional memberships, workshops, conferences, and seminars must:
• Relate to and be beneficial for the work of the employee's current City posiƟon or occupaƟon; or
• SaƟsfy a conƟnuing educaƟon requirement of the employee's current • City posiƟon; or
• Prepare the employee for advancement/promoƟon to posiƟons of greater responsibility within the City.

Under this secƟon, employees may also request reimbursement of payments made towards student loans.

Employees who have completed less than two (2) years of service with the City may be reimbursed up to a maximum amount of One Thousand Five Hundred Dollars ($1,500) per calendar year, per employee.

Employees who have completed two or more years of service with the City may be reimbursed up to an addiƟonal One Thousand Five Hundred Dollars ($1,500), for a total maximum reimbursement of Three Thousand Dollars ($3,000) per calendar year, per 479
10 employee. This addiƟonal $1,500 may only be applied towards reimbursement for jobrelated degrees from accredited educaƟonal insƟtuƟons or repayment of student loans.

The City does not make any representaƟons as to the tax treatment of this benefit.

SECTION 7

HEALTH AND WELFARE

7.1 Medical, Dental and Vision Insurance
A. Eligibility
All regular employees of the City eligible for PERS medical membership shall be eligible to enroll in the health and welfare benefits provided by this SecƟon and currently authorized for this bargaining unit. Eligible dependents of a regular employee eligible for PERS medical membership shall be permiƩed to parƟcipate in any health and welfare benefit provided in this SecƟon to the extent authorized by the benefit plan.

EffecƟve January 1, 2014, the City will offer minimum essenƟal coverage as required by the PaƟent ProtecƟon and Affordable Care Act. However, in no event shall the employee's contribuƟon towards individual medical coverage exceed 9.5% of his or her gross taxable wages as reported on his or her W-2.

B. Medical Insurance Benefits
The City will contract with the California Public Employees ReƟrement System (Cal PERS) for the purpose of providing employees and their eligible dependents with medical insurance benefits.

The City will pay the minimum employer contribuƟon required under Public Employees Medical and Hospital Care Act (PEMHCA) for each eligible acƟve employee towards the purchase of medical insurance.

C. Cafeteria Plan
The City will maintain a Cafeteria Plan, pursuant to SecƟon 125 of the Internal Revenue Code, for the purpose of providing employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, and vision insurance.
480
11 The City will provide a Cafeteria Plan Allowance to all employees eligible to parƟcipate in City-sponsored health and welfare benefits.

Beginning on January 1, 2027 and on each January 1 thereafter up to and through June 30, 2030, the City agrees to adjust the maximum monthly contribution toward medical insurance premiums for employees who participate in City sponsored health and welfare benefits using the CalPERS Kaiser premium rates set for each corresponding calendar year, subject to a cap of 7.5% in annual increases borne by the City. Any CalPERS Kaiser premium increases exceeding the 7.5% cap shall be borne solely by the employee. 481
12 Employees who enroll in City-sponsored health and welfare benefits will receive the CalPERS Kaiser premium rates as the maximum City contributions based on the employee’s eligibility for enrollment (i.e. Subscriber, Subscriber + 1 dependent, Subscriber + 2 dependents), subject to the 7.5% annual increase provision as set forth above, The City’s agreement to absorb annual CalPERS Kaiser premium rate increases shall be limited to the 2026 – 2030 MOU, and this provision shall automatically sunset upon the expiration of the MOU on June 30, 2030.

The City's contribution for part-time employees shall be pro-rated based on their FTE.

In addiƟon, the City agrees to provide dental and vision insurance up to the family level coverage for regular full-Ɵme employees. The City's contribuƟon for part-Ɵme employees shall be pro-rated based on their FTE.

Any and all addiƟonal sums, over and above the amounts stated above that are required to purchase the employee selected Health and Welfare benefit, shall be paid by the employee through payroll deducƟon. Cafeteria Plan Allowance in excess of actual premiums is to be paid to the employee. A City payroll deducƟon authorizaƟon form shall be completed.

For parƟculars of coverage, see appropriate pamphlets and contracts.

D. Flexible Spending Accounts
The City will offer a flexible spending account (FSA) program available to employees.

Employees may elect to contribute pretax dollars towards their FSAs for approved uses under such plan(s). FSA contribuƟons shall not exceed IRS allowable limits. 482
13 7.2 Life Insurance and AD & D Insurance
The City shall provide Life Insurance and Accidental Death and Dismemberment coverage for employees in the amount equal to one (1) Ɵmes their individual annual base salary.

7.3 Disability Coverage
The City shall provide long-term disability coverage of sixty seven percent (67%) of monthly earnings to a maximum monthly benefit of Six Thousand Dollars ($6,000) aŌer a sixty (60) day eliminaƟon period.

7.4 Deferred CompensaƟon
Employees may parƟcipate in the City's voluntary deferred compensaƟon program (457 Plan). For employees who have completed one year of service with the City, the City will match fiŌy cents ($0.50) for every dollar that the employee contributes towards their 457 Plan account, up to an employee contribuƟon of six percent (6.0%) of the employee's salary. For example, if an employee contributes 6.0% or more of their salary towards their 457 Plan account, they will receive a 3.0% match from the City. For employee contribuƟons, the City will make payroll deducƟons and transmit funds to the administrator. The City makes no representaƟon on the merit of the plan or any of the investment products or instruments, which may be offered by the plan. The individual parƟcipant is responsible for evaluaƟng the investment opƟons within the plan. The City currently contracts with the ICMA-RC and CalPERS to provide a 457 program. 7 .5 ReƟrement
The City will provide the following benefits to employees who do not meet the definiƟon of "new member" as set forth in Government Code SecƟon 7522.02(f):
a. Employer Paid Member ContribuƟon (EPMC) -- EffecƟve July 1, 2013, employees will be required to pay seven percent (7%) of the member contribuƟon; b. 2% @ 55 ReƟrement opƟon;
c. One-Year final compensaƟon;
d. Unused Sick Leave Conversion for ReƟrement Service Credit- ReƟring employees, defined as employees who request reƟrement payments from PERS within 120 days from separaƟon from service, may convert unused sick leave to service credits to the 483
14 maximum allowed by CalPERS. This provision to convert sick leave to service credits is at the opƟon of the employee and, if so selected, is in-lieu of any other opƟons available to convert sick leave to cash upon separaƟon that the CompensaƟon and benefits plan may provide;
e. Employer Paid Member ContribuƟon (EMPC) converted to payrate during the final compensaƟon period.

ReƟrement benefits of employees who on or aŌer January 1, 2013 became members of CalPERS or a reƟrement system that has reciprocity with CalPERS shall conform to the requirements of the California Public Employees' Pension Reform Act of 2013, Gov.

Code§ 7522 et seq., as may be amended.

The City will provide the following reƟrement benefits to all employees:
a. 1959 Survivor Benefit -- 3 Level.
b. Military Service Credit (Statutes of 1976) -- The employee, at the employee's expense, may purchase Military Service Credits.
c. Pre-reƟrement OpƟon 2W Death Benefit.

SECTION 8

HOLIDAYS

8.1 Recognized Holidays
All full-Ɵme bargaining unit employees are enƟtled to the following holidays with pay:
• New Year’s Day
• One day prior to, or following New Year’s Day
• MarƟn Luther King, Jr. Day
• Farmworker Day
• Memorial Day
• Juneteenth
• Independence Day
• Veteran’s Day
484
15 • Thanksgiving Day
• Day aŌer Thanksgiving
• Christmas Day
• One day prior to, or following Christmas Day
• One FloaƟng Holiday
Part-Ɵme employees shall receive holiday pay equivalent to their regularly scheduled hours on the day on which the holiday is observed (for example, if an employee is regularly scheduled to work six (6) hours on Mondays, they would receive six (6) hours of holiday pay for any holidays that are observed on a Monday).

For Christmas and New Year's Holidays the following schedule shall be used to determine the actual days off:

Actual Holiday Holiday Observed Day Before or AŌer
Sunday Monday Tuesday
Monday Monday Tuesday
Tuesday Tuesday Monday
Wednesday Wednesday Tuesday
Thursday Thursday Friday
Friday Friday Thursday
Saturday Friday Thursday
SECTION 9
LEAVE

9.1 VacaƟon Leave
Full-Ɵme employees are enƟtled to paid vacaƟon Ɵme off which shall accrue at the following rate:
0 through 4 years 8 hours per month
5 through 10 years 10 hours per month
11 through 15 years 12 hours per month
16 through 20 years 14 hours per month
21+ years 15.33 hours per month
485
16 The accrual rate for part-Ɵme employees shall be pro-rated based on their FTE.

Employees may accumulate up to, but not more than, two (2) years of vacaƟon credit at their current accrual level. When an employee reaches the maximum accrual level he/she will no longer accrue vacaƟon. The City Manager has the discreƟon to include prior years of total public service when establishing vacaƟon leave accrual for new hires.

9.2 Sick Leave
Full-Ɵme employees shall accrue eight (8) hours of sick leave with pay for each month of service. The accrual rate for part-Ɵme employees shall be pro-rated based on their FTE.

Sick leave may be applied to:
a. Absence necessitated by an employee's personal illness. b. Medical and dental appointments.

All condiƟons and restricƟons that govern employee use of sick leave shall also apply to the use by an employee to aƩend to an illness of his/her child, mother, father, mother-inlaw, father-in-law, spouse, domesƟc partner; domesƟc partner's mother, father, or child; and any dependent living in the same household as the employee.

Sick Leave incenƟve: Two (2) days' vacaƟon leave will be awarded conƟngent upon nonusage of accumulated sick leave (i.e. employee authorized one addiƟonal vacaƟon day per six (6) months provided sick leave usage does not exceed two (2) days for that same period).

9.3 Industrial Accident Leave
An employee who has suffered an illness or injury arising out of and in the course of his/her employment, as defined by the Workers' CompensaƟon laws of the State of California and is receiving temporary disability indemnity payments shall be enƟtled to industrial accident leave while so disabled without loss of compensaƟon for a period not to exceed seventy-five (75) calendar days.

During the period the employee is paid by the City, the employee shall endorse to the City any temporary disability indemnity benefit payments received as a result of Workers' CompensaƟon insurance coverage. The City will withhold payment of all compensaƟon and benefits provided by this secƟon unƟl it is determined whether the illness or injury is accepted. If the employee's disability caused by illness or injury arising out of and in the course of the employee's employment extends beyond seventy-five (75) calendar days 486
17 as described above, the employee may integrate his/her unused sick leave, vacaƟon leave, and compensatory Ɵme accruals with the Workers' CompensaƟon payments, provided that the sum of all Workers' CompensaƟon Temporary Disability Indemnity benefits and paid leave do not exceed the employee's regular rate of pay for said period.

Once sick leave is exhausted, the employee may request an unpaid leave of absence. Such request must be in wriƟng and must include a medical doctor's esƟmated date of return to full duty.

9.4 Bereavement Leave
The maximum period of bereavement leave with pay granted to any employee, whether full-Ɵme or part-Ɵme, for each death in his/her immediate family (immediate family includes and is limited to spouse/registered domesƟc partner and parents, grandparents, children, grandchildren, and siblings of the employee and/or spouse/registered domesƟc partner of the employee) shall be three (3) consecuƟve working days. Bereavement leave with pay granted to an employee for all deaths in his/her immediate family shall not exceed five (5) working days during any twelve (12) month period except by special acƟon of the City Council for good cause shown, except that an addiƟonal day will be granted in each case where the death takes place outside the State of California.

9.5 Jury Duty
A regular employee who is summoned for aƩendance to any court for jury duty will promptly inform his or her supervisor and, if required to serve, may be absent from work without loss of wages or use of accrued leave while rendering such service (including travel Ɵme).

Employees shall return all jury fees to the City. Jury fees received by an employee, if any, will be remiƩed to the City within fiŌeen (15) working days aŌer they are received, exclusive of any meal, expense, and/or travel reimbursements.

9.6 Court Leave
Each employee of the City who is required, under subpoena, to take Ɵme off duty with the City, to appear as a witness, by reason of their employment with the City, before any court, arbitrator, or tribunal, shall receive their regular salary during the Ɵme of their 487
18 service as a witness under subpoena, less any and all witness fees which the employee may receive. CompensaƟon will not be paid if the employee is a party to the acƟon and is in a posiƟon adverse to the City. Upon service of subpoena, an employee shall immediately advise their supervisor thereof, and of the Ɵme when the employee is required to appear in Court in response thereto.

9.7 Military Leave
The City shall grant military leave in accordance with the California Military and Veterans Code.

9.8 AdministraƟve Leave
In addiƟon to vacaƟon leave, employees shall accrue eight (8) hours of administraƟon leave per month. The City Manager may grant up to an addiƟonal twelve ( 12) hours of administraƟve leave per fiscal year in recogniƟon of unanƟcipated efforts. The City Manager has full discreƟon in deciding whether to grant addiƟonal leave.

Employees may accumulate up to, but not more than, two (2) years of administraƟve leave credit. When an employee reaches the maximum accrual level, he/she will no longer accrue administraƟon leave.

9.9 City Hall Closure

2026-2027
City Hall will be closed December 28-30, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2026 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2027. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2027-2028
City Hall will be closed December 27-29, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees 488
19 without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2028 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2029. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
2029-2030
City Hall will be closed December 26-28, 2026. City employees may use accrued vacation, administrative leave or take unpaid time off during the unpaid closure days. Employees without accrued vacation or administrative leave will take unpaid leave. Employees may be permitted or required to work during this period with the approval of the City Manager and subject to the business needs of the City.

Staff who have completed less than two (2) years of service with the City as of December 1, 2029 will be granted two (2) floating holidays to be used solely for purposes of taking paid leave during the winter closure period. In the event an employee is permitted or required to work during the closure period, such employee must use these two (2) floating holidays before March 1, 2030. The floating holidays granted under this provision shall not carry over (except as provided for in the previous sentence) and shall have no cash value.
489
20 SECTION 10

AT-WILL STATUS

10.1 At-Will Status and Severance
Unrepresented execuƟve employees are at-will and serve at the pleasure of the City Manager. Unrepresented execuƟve employees do not have a property interest in their posiƟon with the City and employment may be terminated at any Ɵme, with or without cause, by either the City or the employee. Notwithstanding the foregoing, an unrepresented execuƟve employee shall not be removed from office, other than for misconduct in office, during or within a period of ninety (90) days succeeding the appointment of a new City Manager. The purpose of this provision is to allow any new City Manager to observe the acƟons and ability of the unrepresented execuƟve employees in the performance of the powers and duƟes of their office. This grace period does not alter the at-will status of unrepresented execuƟve employees.

Should the City Manager choose to terminate any unrepresented execuƟve employee, the following severance provisions apply and will be made available to the employee if the separated employee signs and agrees to be bound by a wriƩen general release agreeing not to sue and waiving claims and recovery against the City and all City representaƟves and agents.

StarƟng on the one-year anniversary of the date of hire, unrepresented execuƟve employees released without cause shall be eligible for a general release with a severance payment equal to four (4) week's salary at the base pay rate upon separaƟon.

490
21 EXHIBIT A

SALARY SCHEDULES
EffecƟve July 1, 2026
5% COLA
Steps
Position Class A B C D E
Assistant City Manager 10-500 18,570 19,499 20,474 21,498 22,573 Public Works Director 10-500 18,570 19,499 20,474 21,498 22,573 Community Development Director 10-505 17,091 17,946 18,843 19,785 20,774 Finance Director* 10-490 16,933 17,780 18,669 19,602 20,582 Administrative Services Director 10-490 16,933 17,780 18,669 19,602 20,582 Deputy City Manager* 10-501 15,395 16,165 16,973 17,822 18,713 Communications Director/City Clerk 10-412 14,601 15,331 16,098 16,903 17,748 Contract Services Manager* 10-430 12,041 12,643 13,275 13,939 14,636 Assistant to the City Manager 10-420 10,851 11,394 11,964 12,562 13,190 *Approved Classifications, unbudgeted
EffecƟve July 1, 2027

3.50% COLA
Steps
Position Class A B C D E
Assistant City Manager 10-500 19,220 20,181 21,190 22,250 23,363 Public Works Director 10-500 19,220 20,181 21,190 22,250 23,363 Community Development Director 10-505 17,689 18,573 19,502 20,477 21,501 Finance Director* 10-490 17,526 18,402 19,322 20,288 21,302 Administrative Services Director 10-490 17,526 18,402 19,322 20,288 21,302 Deputy City Manager* 10-501 15,934 16,731 17,568 18,446 19,368 Communications Director/City Clerk 10-412 15,112 15,868 16,661 17,494 18,369 Contract Services Manager* 10-430 12,462 13,085 13,739 14,426 15,147 Assistant to the City Manager 10-420 11,231 11,793 12,383 13,002 13,652 *Approved Classifications, unbudgeted
491
22 EffecƟve July 1, 2028

3.25%
Steps
Position Class A B C D E
Assistant City Manager 10-500 19,845 20,837 21,879 22,973 24,122 Public Works Director 10-500 19,845 20,837 21,879 22,973 24,122 Community Development Director 10-505 18,264 19,177 20,136 21,143 22,200 Finance Director* 10-490 18,096 19,001 19,951 20,949 21,996 Administrative Services Director 10-490 18,096 19,001 19,951 20,949 21,996 Deputy City Manager* 10-501 16,452 17,275 18,139 19,046 19,998 Communications Director/City Clerk 10-412 15,604 16,384 17,203 18,063 18,966 Contract Services Manager* 10-430 12,868 13,511 14,187 14,896 15,641 Assistant to the City Manager 10-420 11,597 12,177 12,786 13,425 14,096 *Approved Classifications, unbudgeted
EffecƟve July 1, 2029

3.25%
Steps
Position Class A B C D E
Assistant City Manager 10-500 20,490 21,515 22,591 23,721 24,907 Public Works Director 10-500 20,490 21,515 22,591 23,721 24,907 Community Development Director 10-505 18,858 19,801 20,791 21,831 22,923 Finance Director* 10-490 18,685 19,619 20,600 21,630 22,712 Administrative Services Director 10-490 18,685 19,619 20,600 21,630 22,712 Deputy City Manager* 10-501 16,987 17,836 18,728 19,664 20,647 Communications Director/City Clerk 10-412 16,112 16,918 17,764 18,652 19,585 Contract Services Manager* 10-430 13,287 13,951 14,649 15,381 16,150 Assistant to the City Manager 10-420 11,974 12,573 13,202 13,862 14,555 *Approved Classifications, unbudgeted
492
Class A B C D E
Assistant City Manager 10-500 18,570 19,499 20,474 21,498 22,573 Public Works Director 10-500 18,570 19,499 20,474 21,498 22,573 Community Development Director 10-505 17,091 17,946 18,843 19,785 20,774 Finance Director* 10-490 16,933 17,780 18,669 19,602 20,582 Administrative Services Director 10-490 16,933 17,780 18,669 19,602 20,582 Deputy City Manager* 10-501 15,395 16,165 16,973 17,822 18,713 Communications Director/City Clerk 10-412 14,601 15,331 16,098 16,903 17,748 Contract Services Manager* 10-430 12,041 12,643 13,275 13,939 14,636 Assistant to the City Manager 10-420 10,851 11,394 11,964 12,562 13,190 Finance Manager 10-485 12,408 13,028 13,679 14,363 15,081 City Clerk 10-525 12,293 12,908 13,553 14,231 14,943
Administrative Services Manager * 10-525 12,293 12,908 13,553 14,231 14,943 Senior Accountant* 10-721 10,314 10,830 11,372 11,941 12,538 Management Analyst - Human Resources 10-715 9,202 9,662 10,145 10,652 11,185 Executive Assistant to the City Manager 10-745 7,809 8,199 8,609 9,039 9,491 Part-Time Range
Building Attendant I 890/012 18.08 18.98 19.93 20.93 21.98 Building Attendant II 890/015 20.94 21.99 23.09 24.24 25.45 Building Attendant III 890/018 25.45 26.72 28.06 29.46 30.93 Maintenance Assistant* 890/015 20.94 21.99 23.09 24.24 25.45 Intern 02-100 24.31 25.53 26.81 28.15 29.56
Exempt - Confidential
Hourly Wage
Steps
Monthly Salary Ranges
City of Half Moon Bay
Salary Schedule
Effective July 1, 2026
Exempt - Non Represented Management
493

Page 1 of 4 ends

Half Moon Bay City CouncilAugust 18, 2026

Half Moon Bay City Council
August 18, 2026