City Council

MINUTES CITY OF HALF MOON BAY CITY COUNCIL TUESDAY, DECEMBER 3, 2024 ADCOCK COMMUNITY/SENIOR CENTER, 535 KELLY AVENUE CALL TO ORDER / ROLL CALL Mayor Jimenez called the meeting to order at 7:00 p.m. and led the Pledge of Allegiance. ROLL CALL PRESENT: Councilmembers Brownstone, Penrose and Ruddock, Vice Mayor Rarback and Mayor Jimenez APPROVAL OF AGENDA MOTION Vice Mayor Rarback moved and Councilmember Penrose seconded a motion to approve the Agenda. The question was called and the motion carried unanimously. PROCLAMATIONS AND PRESENTATIONS RECOGNITION AND THANKS FOR OUTGOING CONGRESSWOMAN ANNA ESHOO The Council recognized Congresswoman Eshoo. Congresswoman Eshoo expressed pride in her service and thanked the Council. MAYOR’S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE Mayor Jimenez announced the Night of Lights Parade and discussed the visit to non-profit organizations by several corporations regarding continued funding. REPORT OUT FROM RECENT CLOSED SESSION MEETINGS City Attorney Enberg reported that the Council met in Closed Session and discussed the item on the agenda with no reportable action. CITY MANAGER UPDATES TO COUNCILDocusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

December 3, 2024 City Council Minutes Page 2 of 6 None. PUBLIC FORUM The following individuals addressed the Council:  Rosio Avila  Evelyn D  Dan Haggerty 1. CONSENT CALENDAR Councilmember Ruddock pulled Items 1.C and 1.E. The Consent Calendar consisted of followings items: 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES APPOINTMENT 1.C 2025 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) 1.D AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2024 1.E SIXTH AMENDMENT TO LEASE AGREEMENT WITH KATHY OLER FOR THE USE OF 730 MILL STREET AS A PUBLIC PARKING LOT MOTION Councilmember Ruddock moved and Vice Mayor Rarback seconded a motion to approve the Consent Calendar, with the exception of Items 1.C and 1.E. The question was called and the motion carried unanimously. City Manager Chidester requested the items pulled from the Consent Calendar be heard after Item 3.C. 2. ORDINANCES AND PUBLIC HEARINGS 2.A RESOLUTION OF PUBLIC INTEREST AND CONVENIENCE APPROVING THE CITY’S SALE OF A PORTION OF 880 STONE PINE ROAD (6.87-ACRE PORTION OF APN: 056-260-180) FOR THE CONSTRUCTION OF A 47-UNIT AFFORDABLE FARMWORKER HOUSING PROJECT MOTION Councilmember Ruddock moved and Vice Mayor Rarback seconded a motion to continue the hearing to a date certain of December 16, 2024 at 7:00 p.m. or as soon thereafter that the matter can be heard at the special City Council meeting held at the Ted Adcock Community Center (TACC) 535 Kelly Avenue, Half Moon Bay, CA 94019. The motion carried unanimously.Docusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

December 3, 2024 City Council Minutes Page 3 of 6 3. RESOLUTIONS AND STAFF REPORTS 3.A OBJECTIVE DESIGN STANDARDS STATUS UPDATE FOR MULTI-FAMILY DEVELOPMENT IN ACCORDANCE WITH STATE LEGISLATION Associate Planner Wilson presented the staff report. Associate Planner Wilson and City Attorney Engberg responded to Council questions. The following individual addressed the Council:  Rick Hernandez The Council discussed the item and agreed with Option 1, adding a study session and interim objective design standards. 3.B LEGISLATIVE ADVOCACY END OF SESSION UPDATE Communications Director/City Clerk Blair and Carly Shelby, Townsend Public Affairs, presented the staff report. The following individual addressed the Council:  Dan Haggerty The Council discussed the item. RECESS Mayor Jimenez called a recess at 8:23 p.m. The meeting reconvened at 8:35 p.m. with all Councilmembers present. 1. CONSENT CALENDAR (Continued) The following items were pulled from the Consent Calendar for individual consideration: 1.C 2025 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Senior Planner Phillips presented the staff report. Senior Planner Phillips, City Attorney Engberg and Assistant City Manager Doughty responded to Council questions. MOTIONDocusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

December 3, 2024 City Council Minutes Page 4 of 6 Vice Mayor Rarback moved and Councilmember Ruddock seconded a motion to adopt a resolution setting the 2025 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 67 residential dwelling units, 45 units for the Downtown (23 base units and 22 bonus units), and 22 units outside of the Downtown. The question was called and the motion carried unanimously. 1.E SIXTH AMENDMENT TO LEASE AGREEMENT WITH KATHY OLER FOR THE USE OF 730 MILL STREET AS A PUBLIC PARKING LOT City Manager Chidester presented the staff report. The following individual addressed the Council:  Krystyln Giedt The Council asked questions and discussed the item. MOTION Councilmember Ruddock moved and Vice Mayor Rarback seconded a motion to adopt a resolution authorizing the City Manager to execute the Sixth Amendment to the Lease Agreement with Kathy Oler, for the use of 730 Mill Street as a public parking lot through December 31, 2029, including discussions of right of first refusal for acquisition of the parcel and possibility of paid parking. The question was called and the motion carried unanimously. 3.C FINANCIAL REPORT FOR THE QUARTER ENDED ON SEPTEMBER 30, 2024 Finance Manager Stiles presented the staff report. MOTION Councilmember Brownstone moved and Councilmember Penrose seconded a motion to accept the Financial Report for the quarter ended on September 30, 2024, and authorize the Administrative Service Director to make budgetary entries to account for previously approved carryforward funds related to capital improvement projects. The question was called and the motion carried unanimously. 3.D ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2024 UPDATE Finance Manager Stiles presented the staff report. The Council asked questions and discussed the item. 3.E MEASURE R - TRANSACTION AND USE (SALES) TAX IMPLEMENTATIONDocusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

December 3, 2024 City Council Minutes Page 5 of 6 Finance Manager Stiles and Communications Director/City Clerk Blair presented the staff report. MOTION Councilmember Brownstone moved and Vice Mayor Rarback seconded a motion to: 1) adopt a resolution authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration (CDTFA) for implementation of a local transactions and use tax; 2) adopt a resolution authorizing the examination of the sales, use, and transactions tax records for the City; and 3) appropriate $175,000 of Measure R revenue for the preparatory costs incurred by the CDTFA necessary to administer the City’s transactions and use tax. The question was called and the motion carried unanimously. 3.F SECOND AMENDMENT TO EMPLOYMENT CONTRACT FOR CITY MANAGER City Attorney Engberg presented the staff report. The Council asked questions of staff and discussed the item. The following individual addressed the Council:  Dan Haggerty MOTION Councilmember Penrose moved and Vice Mayor Rarback seconded a motion to approve Amendment No. 2 to the August 20, 2022 City Manager Employment Agreement with Matthew Chidester to increase the annual base salary from $272,950 to $281,138.50 effective July 1, 2024, and provide for future cost of living increases consistent with what is received by other City executive staff or with State CPI, whichever is lower. The question was called and the motion carried unanimously. FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS None. COMMISSION / COMMITTEE REPORTS None. CITY COUNCIL REPORTS City Manager Chidester announced the upcoming Recreation Commission meeting. ADJOURNMENTDocusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

December 3, 2024 City Council Minutes Page 6 of 6 Mayor Jimenez adjourned the meeting at 9:37 p.m. Respectfully Submitted: Approved: Jessica Blair, City Clerk Joaquin Jimenez, MayorDocusign Envelope ID: 06F6F6D0-D7FD-4A6E-97D1-B1F3AE55CB36

CITY COUNCIL AGENDA REGULAR MEETING CITY OF HALF MOON BAY TUESDAY, DECEMBER 3, 2024 HYBRID MEETING (SEE NEXT PAGE) ADCOCK COMMUNITY CENTER 535 KELLY AVENUE HALF MOON BAY, CA 94019 Joaquin Jimenez, Mayor Harvey Rarback, Vice Mayor Robert Brownstone, Councilmember Deborah Penrose, Councilmember Debbie Ruddock, Councilmember 7:00 PM This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item. Comments on City Manager Updates and Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s consideration. Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk. Copies of written documentation relating to each item of business on the agenda are on file in the Office of the City Clerk at City Hall where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726-8271. In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). http://hmbcity.com/ Wi-Fi: HMB Public Password: Recreation1

HYBRID MEETING PARTICIPATION PROTOCOLS This meeting will be held in-person and via Zoom for public participation. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation. Public comments may be made in-person or remotely via Zoom, and interpretation will be available. All Councilmembers and staff will participate in person. During any public comment portions, attendees may use the “raise your hand” feature and will be called upon and unmuted when it is their turn to speak. The meeting will also be streamed on Channel 27, on pacificcoast.tv, and on Facebook at www.facebook.com/cityofhalfmoonbay. Please click to join the webinar: https://us06web.zoom.us/j/87674804231 or join by phone at 669-900-9128, using Webinar ID 876-7480-4231. If joining by phone, use *9 to raise your hand, *6 to mute and unmute. ROLL CALL / PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA PROCLAMATIONS AND PRESENTATIONS RECOGNITION AND THANKS FOR OUTGOING CONGRESSWOMAN ANNA ESHOO MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE REPORT OUT FROM RECENT CLOSED SESSION MEETINGS CITY MANAGER UPDATES TO COUNCIL PUBLIC FORUM 1. CONSENT CALENDAR 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES APPOINTMENT Staff Recommendation: By motion, reappoint Kati Martin as the City of Half Moon Bay’s representative to the San Mateo County Mosquito and Vector Control District Board of Trustees for a four-year term commencing on January 6, 2025. STAFF REPORT 1.C 2025 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2025 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 67 residential dwelling units, 45 units for the Downtown (23 base units and 22 bonus units), and 22 units outside of the Downtown. STAFF REPORT

RESOLUTION ATTACHMENT 2 1.D AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2024 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2024. STAFF REPORT 1.E SIXTH AMENDMENT TO LEASE AGREEMENT WITH KATHY OLER FOR THE USE OF 730 MILL STREET AS A PUBLIC PARKING LOT Staff Recommendation: Adopt a resolution authorizing the City Manager to execute the Sixth Amendment to the Lease Agreement with Kathy Oler, for the use of 730 Mill Street as a public parking lot through December 31, 2029. STAFF REPORT RESOLUTION 2. ORDINANCES AND PUBLIC HEARINGS 2.A RESOLUTION OF PUBLIC INTEREST AND CONVENIENCE APPROVING THE CITY’S SALE OF A PORTION OF 880 STONE PINE ROAD (6.87-ACRE PORTION OF APN: 056-260-180) FOR THE CONSTRUCTION OF A 47-UNIT AFFORDABLE FARMWORKER HOUSING PROJECT Staff Recommendation: Continue the public hearing to a date certain of December 16, 2024 at 7:00 p.m. or as soon thereafter that the matter can be heard at the special City Council meeting held at the Ted Adcock Community Center (TACC) 535 Kelly Avenue, Half Moon Bay, CA 94019. STAFF REPORT 3. RESOLUTIONS AND STAFF REPORTS 3.A OBJECTIVE DESIGN STANDARDS STATUS UPDATE FOR MULTI-FAMILY DEVELOPMENT IN ACCORDANCE WITH STATE LEGISLATION Staff Recommendation: Receive a presentation and provide direction to staff on the development of Objective Design Standards, including Local Coastal Program amendments for multi-family housing in accordance with SB 423, SB 35, and other state legislation. STAFF REPORT

ATTACHMENT 1 ATTACHMENT 2 3.B LEGISLATIVE ADVOCACY END OF SESSION UPDATE Staff Recommendation: Receive an update from Townsend Public Affairs, Inc. on legislative advocacy services and the 2024 legislative session. STAFF REPORT 3.C FINANCIAL REPORT FOR THE QUARTER ENDED ON SEPTEMBER 30, 2024 Staff Recommendation: Accept the Financial Report for the quarter ended on September 30, 2024, and authorize the Administrative Service Director to make budgetary entries to account for previously approved carryforward funds related to capital improvement projects. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 3.D ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2024 UPDATE Staff Recommendation: Receive the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024 Update. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 3.E MEASURE R - TRANSACTION AND USE (SALES) TAX IMPLEMENTATION Staff Recommendation: By motion: 1) adopt a resolution authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration (CDTFA) for implementation of a local transactions and use tax; 2) adopt a resolution authorizing the examination of the sales, use, and transactions tax records for the City; and 3) appropriate $175,000 of Measure R revenue for the preparatory costs incurred by the CDTFA necessary to administer the City’s transactions and use tax.

STAFF REPORT RESOLUTION 1 RESOLUTION 2 3.F SECOND AMENDMENT TO EMPLOYMENT CONTRACT FOR CITY MANAGER Staff Recommendation: By motion, approve Amendment No. 2 to the August 20, 2022 City Manager Employment Agreement with Matthew Chidester to increase the annual base salary from $272,950 to $281,138.50 effective July 1, 2024, and provide for future cost of living increases consistent with what is received by other City executive staff or with State CPI, whichever is lower STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 COMMISSION / COMMITTEE UPDATES FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS CITY COUNCIL REPORTS ADJOURNMENT

CITY COUNCIL AGENDA REGULAR MEETING CITY OF HALF MOON BAY TUESDAY, DECEMBER 3, 2024 HYBRID MEETING (SEE NEXT PAGE) ADCOCK COMMUNITY CENTER 535 KELLY AVENUE HALF MOON BAY, CA 94019 Joaquin Jimenez, Mayor Harvey Rarback, Vice Mayor Robert Brownstone, Councilmember Deborah Penrose, Councilmember Debbie Ruddock, Councilmember 7:00 PM This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item. Comments on City Manager Updates and Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s consideration. Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk. Copies of written documentation relating to each item of business on the agenda are on file in the Office of the City Clerk at City Hall where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726-8271. In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). http://hmbcity.com/ Wi-Fi: HMB Public Password: Recreation1 1

HYBRID MEETING PARTICIPATION PROTOCOLS This meeting will be held in-person and via Zoom for public participation. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation. Public comments may be made in-person or remotely via Zoom, and interpretation will be available. All Councilmembers and staff will participate in person. During any public comment portions, attendees may use the “raise your hand” feature and will be called upon and unmuted when it is their turn to speak. The meeting will also be streamed on Channel 27, on pacificcoast.tv, and on Facebook at www.facebook.com/cityofhalfmoonbay. Please click to join the webinar: https://us06web.zoom.us/j/87674804231 or join by phone at 669-900-9128, using Webinar ID 876-7480-4231. If joining by phone, use *9 to raise your hand, *6 to mute and unmute. ROLL CALL / PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA PROCLAMATIONS AND PRESENTATIONS RECOGNITION AND THANKS FOR OUTGOING CONGRESSWOMAN ANNA ESHOO MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE REPORT OUT FROM RECENT CLOSED SESSION MEETINGS CITY MANAGER UPDATES TO COUNCIL PUBLIC FORUM 1. CONSENT CALENDAR 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES APPOINTMENT Staff Recommendation: By motion, reappoint Kati Martin as the City of Half Moon Bay’s representative to the San Mateo County Mosquito and Vector Control District Board of Trustees for a four-year term commencing on January 6, 2025. STAFF REPORT 1.C 2025 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2025 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 67 residential dwelling units, 45 units for the Downtown (23 base units and 22 bonus units), and 22 units outside of the Downtown. STAFF REPORT 2

RESOLUTION ATTACHMENT 2 1.D AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2024 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2024. STAFF REPORT 1.E SIXTH AMENDMENT TO LEASE AGREEMENT WITH KATHY OLER FOR THE USE OF 730 MILL STREET AS A PUBLIC PARKING LOT Staff Recommendation: Adopt a resolution authorizing the City Manager to execute the Sixth Amendment to the Lease Agreement with Kathy Oler, for the use of 730 Mill Street as a public parking lot through December 31, 2029. STAFF REPORT RESOLUTION 2. ORDINANCES AND PUBLIC HEARINGS 2.A RESOLUTION OF PUBLIC INTEREST AND CONVENIENCE APPROVING THE CITY’S SALE OF A PORTION OF 880 STONE PINE ROAD (6.87-ACRE PORTION OF APN: 056-260-180) FOR THE CONSTRUCTION OF A 47-UNIT AFFORDABLE FARMWORKER HOUSING PROJECT Staff Recommendation: Continue the public hearing to a date certain of December 16, 2024 at 7:00 p.m. or as soon thereafter that the matter can be heard at the special City Council meeting held at the Ted Adcock Community Center (TACC) 535 Kelly Avenue, Half Moon Bay, CA 94019. STAFF REPORT 3. RESOLUTIONS AND STAFF REPORTS 3.A OBJECTIVE DESIGN STANDARDS STATUS UPDATE FOR MULTI-FAMILY DEVELOPMENT IN ACCORDANCE WITH STATE LEGISLATION Staff Recommendation: Receive a presentation and provide direction to staff on the development of Objective Design Standards, including Local Coastal Program amendments for multi-family housing in accordance with SB 423, SB 35, and other state legislation. STAFF REPORT 3

ATTACHMENT 1 ATTACHMENT 2 3.B LEGISLATIVE ADVOCACY END OF SESSION UPDATE Staff Recommendation: Receive an update from Townsend Public Affairs, Inc. on legislative advocacy services and the 2024 legislative session. STAFF REPORT 3.C FINANCIAL REPORT FOR THE QUARTER ENDED ON SEPTEMBER 30, 2024 Staff Recommendation: Accept the Financial Report for the quarter ended on September 30, 2024, and authorize the Administrative Service Director to make budgetary entries to account for previously approved carryforward funds related to capital improvement projects. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 3.D ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2024 UPDATE Staff Recommendation: Receive the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024 Update. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 3.E MEASURE R - TRANSACTION AND USE (SALES) TAX IMPLEMENTATION Staff Recommendation: By motion: 1) adopt a resolution authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration (CDTFA) for implementation of a local transactions and use tax; 2) adopt a resolution authorizing the examination of the sales, use, and transactions tax records for the City; and 3) appropriate $175,000 of Measure R revenue for the preparatory costs incurred by the CDTFA necessary to administer the City’s transactions and use tax. 4

STAFF REPORT RESOLUTION 1 RESOLUTION 2 3.F SECOND AMENDMENT TO EMPLOYMENT CONTRACT FOR CITY MANAGER Staff Recommendation: By motion, approve Amendment No. 2 to the August 20, 2022 City Manager Employment Agreement with Matthew Chidester to increase the annual base salary from $272,950 to $281,138.50 effective July 1, 2024, and provide for future cost of living increases consistent with what is received by other City executive staff or with State CPI, whichever is lower STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 COMMISSION / COMMITTEE UPDATES FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS CITY COUNCIL REPORTS ADJOURNMENT 5

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY AGENDA REPORT For meeting of: December 3, 2024 TO: Honorable Mayor and City Council VIA: Matthew Chidester, City Manager From: Jessica Blair, Communications Director/City Clerk TITLE: SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT BOARD OF TRUSTEES APPOINTMENT ______________________________________________________________________________ RECOMMENDATION: By motion, reappoint Kati Martin as the City of Half Moon Bay’s representative to the San Mateo County Mosquito Abatement District (SMCMAD) Board of Trustees for a four-year term commencing on January 6, 2025. FISCAL IMPACT: None associated with this report. STRATEGIC ELEMENT: This recommendation supports the Inclusive Governance Element of the Strategic Plan. BACKGROUND: The District’s stated mission is to safeguard the health and comfort of the citizens of San Mateo County through a planned program to monitor and reduce mosquitoes and other vectors. San Mateo County voters approved annexation to the District in 2003. Each city in San Mateo County nominates one individual to serve as the representative on the Board of Trustees. Ms. Martin has indicated her continuing interest to serve as the City of Half Moon Bay’s representative. DISCUSSION: The City Council reappointed Kati Martin to the Board in December 2020, for a term of four years. The District Manager has asked that the City Council make an appointment to expire on December 31, 2026, or December 31, 2028. The Council may use its discretion to decide which term length it desires. The staff recommendation includes a four-year term per past practice. 6

Page 1 of 5 BUSINESS OF THE CITY OF HALF MOON BAY CITY COUNCIL AGENDA REPORT For the Meeting of: December 3, 2024 TO: Honorable Mayor and City Council VIA: Mathew Chidester, City Manager FROM: Leslie Lacko, Community Development Director Scott Phillips, Senior Planner TITLE: 2025 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) RECOMMENDATION: Adopt a resolution setting the 2025 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 67 residential dwelling units, 45 units for the Downtown (23 base units and 22 bonus units), and 22 units outside of the Downtown. FISCAL IMPACT: There is limited fiscal impact associated with setting the annual residential dwelling unit allocations as the Measure D allocation application fees cover some of the costs of administering the program. A fiscal impact analysis is also required as part of this process, which is described further in this report. It concludes that the impact of development associated with these allocations will be approximately $14,400 annually. The analysis does not account for one-time revenue generated from permitting, which can be quite significant. STRATEGIC ELEMENT: This action supports all Elements of the Strategic Plan: Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, and Inclusive Governance. BACKGROUND: In 1991, Measure A was adopted by City voters establishing a 3 percent annual growth limit. In 1999, Measure D amended the Residential Growth Limitation Ordinance reducing the allowable percentage increase of residential population from 3 percent to 1 percent, with an additional 0.5 percent allowed at the discretion of City Council for residential development in the “Downtown Area.” On December 1, 2010, the City Council adopted an ordinance amending Chapter 17.06 of the Half Moon Bay Municipal Code entitled “Residential Dwelling Unit Allocation System.” Measure D mandates that “the City shall allocate permissible dwelling units among applications on the basis of the existing allocation system or a subsequently modified system.” Measure D 7

Page 2 of 5 allocations are reviewed and authorized annually by the City Council per the Municipal Code. This report provides an update on Measure D allocations and recommends 67 total allowable residential unit allocations for 2025. DISCUSSION: Chapter 17.06 of the Municipal Code establishes the methodology for determining the annual maximum number of residential dwelling unit allocations, or “Measure D Certificates.” The ordinance specifies that the most recent U.S. Census data must be used for determining the average number of persons per household (PPH). The 2020 U.S. Census provides the most recent Census data for a baseline to add additional population to annually. Table 1 presents the methodology and calculations for determining the annual allocation from the 2020 Census baseline. Table 1 – Allocation Calculations Year Base Population (1) New Units (2) PPH Calculated Additional Population (3) New Projected Population (1) Base Allocations (4) Allocation Distribution Total Annual Allocations Downtown (5) Outside Downtown 2021 11,795 35 2.58 90 11,885 46 46 23 69 2022 11,885 23 2.67 61 11,946 45 45 22 67 2023 11,946 41 2.86 117 12,063 42 42 21 63 2024 12,063 10 2.67 27 12,090 45 45 22 67 2025 (1) 2020 U.S. Census Population was utilized for the 2022 baseline from which the calculated additional population is added to each year. (2) Number of new units that were issued building permits during the prior calendar year. (3) Most current US Census PPH data (2.67) multiplied by the number of new units that were issued building permits during the calendar year. (4) One percent of New Projected Population divided by PPH. (5) Includes an additional 0.5% in the downtown area per Section 17.06.020(B). The “new projected population” estimate is used to calculate the total number of units within the City at year-end. The equation for establishing the “new projected population” involves multiplying the number of new units issued building permits during the current calendar year by the average PPH (2.67 from the 2024 census data), then adding the result to the projected population from the previous year. 8

Page 3 of 5 An updated PPH was calculated at 2.67 as compared to 2.86 from last year’s allocation request. This is a decrease in PPH compared to the upward trend that we have seen in the past 3 years. The decrease in PPH results in an increase of 4 new dwelling unit allocations (1 outside of Downtown and 3 Downtown) for 2025 compared to the number of new dwelling allocations in 2024. The base allocation of 1% is split evenly between Downtown and outside of Downtown. As discussed earlier in “Background,” Measure D allows for a 0.5% increase in residential allocations for Downtown, which consists of the City’s former Redevelopment Area. As summarized in Table 2, this provides for a maximum of 67 new dwelling unit allocations for 2025, reserving 45 dwelling unit allocations for the Downtown Area, and 22 dwelling unit allocations outside Downtown. Table 2: Dwelling Unit Allocations – 2025 Total Allocations Downtown Allocations Outside Downtown Allocations 67 45 (1.0%) 22 (0.5%) Municipal Code Section 17.06.020 – “Establishment of number of residential dwelling unit allocations to be authorized annually” sets forth the procedures for establishing the residential allocations. In particular, Section 17.06.020.A states the following: “In determining the number of permissible units, the city shall use the most recent U.S. Census figures for Half Moon Bay to calculate the average number of persons per household.” Consistent with previous years, the most recent U.S. Census figure for PPH was used when calculating the permissible units. Section 17.06.020.G specifies that the City Council shall consider the following when establishing the number of Dwelling Unit Allocations in the upcoming year: 1. The number of residential dwelling units allocated in the current year; 2. The number of residential dwelling units allocated in the preceding year, but not necessarily issued building permits; 3. The number of future residential dwelling unit allocations awarded in accordance with a development phasing plan and agreement as provided for in Section 17.06.055; 4. The information and data contained in the annual fiscal impact analysis as provided for in Section 17.06.045 Fiscal Impact Analysis Required. The following discussion presents information pertinent to the above four considerations. Residential Dwelling Units Allocated in Current and Proceeding Year and Building Permits Issued: Table 3 presents the number of Measure D certificates and building permits issued each year from 2017 through 2024. Since amending the Measure D allocation system in 2010, new residential development from 2010 through 2013 was especially slow as the City recovered from the previous recession. Starting in 2014, growth increased modestly but remained low due to a lack of larger-scale developments other than phase one of Pacific Ridge. Recent years (2019 and on) have seen a distinct increase in applications for both Measure D allocations and building 9

Page 4 of 5 permits. Accessory dwelling units (ADUs) account for much of this increase due to the series of State law amendments that further relaxed ADU development requirements and amplified local interest in ADU construction. In 2021, 2022, and 2023, all allocations were issued, including within and outside Downtown. Seventeen of the bonus allocations downtown remain available. Note that only the downtown base allocation (21 allocations in 2024) can be transferred outside of downtown, which were issued earlier this year. Projects currently under Coastal Development Permit review include Hilltop Mobile Home Park, as well as individual new homes and ADUs. Coastal Development Permits were issued in 2024 for 555 Kelly Avenue affordable housing project, Creekside, and Stone Pine. Table 3 indicates the number of building permits issued compared to allocations available and issued. Staff anticipates that building permit issuance will increase within the upcoming years, reflecting the higher number of allocations issued in recent years. Table 3: Residential Building Permits Issued Year Available Allocations Measure D Allocations Issued Residential Building Permits Issued 2017 66 22 28 2018 66 25 16 2019 71 34 24 2020 69 48 26 2021 66 66 35 2022 69 69 23 2023 67 67 31 2024 66 46* 19 Average 68 54 25 ∗ All 21 base allocations for Downtown were issued in 2024. Per Section 17.06.120 F, the remaining Downtown bonus allocations are not available for transfer. Development Phasing Plans and Unit Prioritization: Before applying for a Coastal Development Permit (CDP) for new residential development, an applicant is required to obtain one Measure D allocation for each unit (per Section 17.06.010.B – Applicability). Measure D certificates are valid for one year (per Section 17.06.050.A. - Timing of building permits issued pursuant to this chapter), but may be extended if other approvals such as a CDP, are required (per Section 17.06.050.F). Alternatively, residential development may be phased over a period of time greater than one year through the processing of a development phasing agreement (per Section 17.06.055). There is a more detailed comparative process for evaluating and ranking subdivisions (Section 17.06.215 – Evaluation procedures for subdivisions for residential development based upon design and amenity criteria and contribution to public facilities), but that process has not been triggered for phased development or subdivisions. In the case that there is an increase in residential development activity beyond available allocations, Sections 17.06.120 and 17.06.275 – “Review of Points awarded and residential units allocated” establish the criteria to evaluate applications and distribute residential dwelling unit 10

Page 5 of 5 allocations. The Measure D Allocation System is structured to prioritize projects in January of each year to evaluate and prioritize applications based on competitive rating criteria (Sections 17.06.120 and 17.06.275). A detailed staff report to the Planning Commission in March 2020 outlined the criteria evaluation process and presented certain aspects of the rating system, as codified in 2010, that are no longer relevant. The Planning Commission concurred with staff’s interpretations of the ranking system. The discussed interpretations have guided the rating of Measure D submittals since then, when there have been more applications received during the annual January application window than available allocations. Fiscal Impact Analysis: Section 17.06.045 requires the City to prepare an annual report identifying the effects of new residential development on City finances and the City’s ability to provide services to the residents. The fiscal impact analysis for 2025 was prepared by Economic & Planning Systems, Inc. and a table summarizing the analysis is included in Attachment 2. The fiscal impact analysis indicates that the new units and residents would generate approximately $35,000 per year in General Fund revenues and require about $49,400 in General Fund expenditures, for an annual estimated deficit of $14,400 in 2025 dollars. The anticipated deficit is slightly less than the anticipated deficits from the previous three years. However, the 2021 fiscal impact analysis indicated an estimated net surplus of $21,118. All of these amounts are close to breaking even for this type of analysis given that one-time permit revenues are excluded from the analysis. ATTACHMENTS: 1. Resolution Establishing the Residential Dwelling Unit Allocation for 2025 2. Fiscal Impact Analysis Spreadsheet of New Residential Development, prepared by Economic & Planning Systems, Inc, November 2025 11

ATTACHMENT 1 RESOLUTION NO. C-24-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ESTABLISHING THE RESIDENTIAL DWELLING UNIT ALLOCATIONS FOR 2025 WHEREAS, in November of 1999, the electorate of the City of Half Moon Bay adopted a new Residential Growth Initiative (Measure D) establishing that the number of residential dwelling units for which the City may authorize allocations each calendar year shall not exceed the number of units that would result in a growth of 1% of the City’s population, plus an additional 0.5% for additional dwelling units in the area defined by Measure D as the “Downtown Area”; and WHEREAS, Measure D has been adopted into the Local Coastal Program and certified by the California Coastal Commission; and WHEREAS, in December of 2010, to implement Measure D, the City Council adopted the Residential Dwelling Unit Permit Allocation System Ordinance, Chapter 17.06 of the Half Moon Bay Municipal Code; and WHEREAS, Section 17.06.020 of the Municipal Code requires the City Council to adopt the annual residential dwelling unit allocation for the upcoming year by December 31st of each year; and WHEREAS, Section 17.06.020.G of the Municipal Code describes factors the Council may take into account in establishing the annual allocation, including the number of Residential Dwelling Units allocated in the current year; the number of Residential Dwelling Units allocated in the preceding year but not necessarily issued, the number of future Residential Dwelling Unit allocations awarded in accordance with a Development Phasing Plan and Agreement, and the information and data contained in the Annual Fiscal Impact analysis as provided for in Section 17.06.045. NOW, THEREFORE BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby finds and determines as follows: Section 1: Findings In accordance with HMBMC Section 17.06.020.G: A. Current Year Allocations: In the current year (2024), a total of 46 Measure D allocations were issued; while 10 new residential Building Permits were issued. B. Preceding Year Allocations: In the preceding year (2023), a total of 67 Measure D allocations were issued; while 31 new residential Building Permit units were issued. 12

C. Future Residential Dwelling Unit Allocations: There are no future residential unit allocations awarded in previous years from this year’s allocation as the result of a Development Phasing Plan and Agreement provided for in Section 17.06.055. D. Annual Fiscal Impact Analysis: Costs for administering the Measure D program are substantially covered by Measure D application fees. Development Impact Fees, Residential Impact Fees for Affordable Housing, and Measure D application fees have b