City Council

MINUTES CITY OF HALF MOON BAY CITY COUNCIL TUESDAY, DECEMBER 20, 2022 VIRTUAL VIA ZOOM MEETING (COVID-19 PROTOCOLS) CALL TO ORDER / ROLL CALL Mayor Ruddock called the meeting to order at 7:02 p.m. and led the pledge of allegiance. ROLL CALL PRESENT: Councilmembers Brownstone, Jimenez, and Rarback, Vice Mayor Penrose, and Mayor Ruddock APPROVAL OF AGENDA PUBLIC FORUM The following individual addressed the Council: • John Ullom 2022 STATE OF THE CITY ADDRESS Communications Director/City Clerk Blair and Communications Project Manager Lettire presented the staff report and State of the City video. 1. CONSENT CALENDAR 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B FINAL RESULTS OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION MOTION Vice Mayor Penrose moved and Councilmember Brownstone seconded a motion to approve the Consent Calendar. The question was called and the motion carried unanimously. ADMINISTRATION OF OATH OF OFFICE TO NEWLY-ELECTED COUNCILMEMBERS Congresswoman Jackie Speier administered the Oath to Councilmember Brownstone, Vice Mayor Penrose and Mayor Ruddock.

DECEMBER 20, 2022 City Council Minutes Page 2 of 3 REMARKS BY OUTGOING MAYOR Mayor Ruddock discussed the highlights of the past year and thank the Council for its support. SELECTION OF MAYOR AND VICE MAYOR FOR 2023 MOTION Mayor Ruddock moved and Councilmember Rarback seconded a motion to select Deborah Penrose as Mayor. The question was called and the motion carried unanimously. MOTION Mayor Penrose moved and Councilmember Brownstone seconded a motion to select Joaquin Jimenez as Vice Mayor. The question was called and the motion carried unanimously. REMARKS BY INCOMING MAYOR Mayor Penrose thanked the Council, community and staff for its support. 2. CONSENT CALENDAR 2.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 2.B 2023 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) 2.C ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 2.D RE-RATIFICATION OF RESOLUTION TO CONTINUE HOLDING PUBLIC MEETINGS REMOTELY (AB 361) 2.E 2023 CALENDAR OF CITY COUNCIL MEETINGS 2.F AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2022 2.G WARRANTS FOR THE MONTH OF NOVEMBER 2022 2.H CONSOLIDATED COASTAL DEVELOPMENT PERMIT--CALIFORNIA BROADBAND MIDDLE MILE NETWORK PROJECT 2.I ORDINANCE ADOPTING THE 2022 EDITIONS OF THE CALIFORNIA BUILDING STANDARDS CODE - SECOND READING 2.J DISPOSABLE FOODWARE ORDINANCE UPDATE - SECOND READING 2.K RENEWAL OF SURF SCHOOL LICENSE AGREEMENTS MOTION Councilmember Brownstone moved and Councilmember Rarback seconded a motion to approve the Consent Calendar. The question was called and the motion carried unanimously.

DECEMBER 20, 2022 City Council Minutes Page 3 of 3 ADJOURNMENT City Manager Chidester thanked Debbie Ruddock for her service as Mayor and the Council for its good governance. Mayor Penrose adjourned the meeting at 7:53 p.m. Respectfully Submitted: Approved: Jessica Blair, City Clerk Deborah Penrose, Mayor

CITY COUNCIL AGENDA REGULAR MEETING CITY OF HALF MOON BAY TUESDAY, DECEMBER 20, 2022 REMOTE PARTICIPATION (SEE NEXT PAGE) Debbie Ruddock, Mayor Deborah Penrose, Vice Mayor Robert Brownstone, Councilmember Joaquin Jimenez, Councilmember Harvey Rarback, 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. Those wishing to speak on a Public Hearing matter will be called forward at the appropriate time during the Public Hearing 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 and the Half Moon Bay Library 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/

SPECIAL REMOTE PARTICIPATION PROTOCOLS This meeting will be held entirely by teleconference. All Councilmembers and staff will only participate via the Zoom platform using the process described below. The meeting is being conducted pursuant to recent amendments to the teleconference rules required by the Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when local officials have recommended social distancing (AB 361). The purpose of AB 361 is to provide the safest environment for the public, elected officials, and staff while allowing for continued operation of the government and public participation during the COVID‐19 pandemic. This meeting will be conducted via Zoom Webinar and live Spanish interpretation will be available within the Zoom platform. Members of the public are welcome to login into the webinar as Attendees. 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/95535614263 or join by phone at 669‐900‐9128, using Webinar ID 955‐3561‐4263. If joining by phone, use *9 to raise your hand, *6 to mute and unmute. CALL TO ORDER / ROLL CALL APPROVAL OF AGENDA PUBLIC FORUM 2022 STATE OF THE CITY ADDRESS 1. CONSENT CALENDAR 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B FINAL RESULTS OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION Staff Recommendation: Adopt a resolution declaring the final results of the November 8, 2022 General Municipal Election. STAFF REPORT RESOLUTION ADMINISTRATION OF OATH OF OFFICE TO NEWLY-ELECTED COUNCILMEMBERS REMARKS BY OUTGOING MAYOR SELECTION OF MAYOR AND VICE MAYOR FOR 2023 REMARKS BY INCOMING MAYOR

2. CONSENT CALENDAR 2.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 2.B 2023 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2023 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 2.C ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Staff Recommendation: Adopt a resolution receiving the City of Half Moon Bay Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022 STAFF REPORT RESOLUTION ATTACHMENT 2 2.D RE-RATIFICATION OF RESOLUTION TO CONTINUE HOLDING PUBLIC MEETINGS REMOTELY (AB 361) Staff Recommendation: By motion, in accordance with Assembly Bill 361, re-ratify the findings in Resolution No. 2021-80 to continue conducting the City’s Council, Commission, and Committee meetings remotely due to health and safety concerns to the public due to COVID-19. STAFF REPORT 2.E 2023 CALENDAR OF CITY COUNCIL MEETINGS Staff Recommendation: By motion, adopt the City Council Calendar for 2023. STAFF REPORT ATTACHMENT

2.F AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2022 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2022. STAFF REPORT 2.G WARRANTS FOR THE MONTH OF NOVEMBER 2022 Staff Recommendation: Accept the warrants list for the month of November 2022 STAFF REPORT ATTACHMENT 1 2.H CONSOLIDATED COASTAL DEVELOPMENT PERMIT--CALIFORNIA BROADBAND MIDDLE MILE NETWORK PROJECT Staff Recommendation: Adopt a resolution authorizing the City Manager to submit a letter to the California Coastal Commission in support of a consolidated Coastal Development Permit (CDP) application for the Broadband Middle Mile Network (BMMN) project and further authorizing the California Coastal Commission assume the lead agency role. STAFF REPORT RESOLUTION 2.I ORDINANCE ADOPTING THE 2022 EDITIONS OF THE CALIFORNIA BUILDING STANDARDS CODE - SECOND READING Staff Recommendation: Waive second reading and adopt an ordinance amending Chapter 14.04 of the Half Moon Bay Municipal Code, adopting by reference the 2022 Edition of the California Building Standards Code, with local amendments, and finding the amendments to be exempt from environmental review under the California Environmental Quality Act (CEQA). STAFF REPORT ORDINANCE RESOLUTION

2.J DISPOSABLE FOODWARE ORDINANCE UPDATE - SECOND READING Staff Recommendation: Waive second reading and adopt an ordinance amending Chapter 7.30 of the Half Moon Bay Municipal Code entitled “Disposable Foodware” regarding food facilities’ provision of single-use foodware accessories, the removal of language surrounding fluorinated chemicals, the removal of language surrounding BPI certified compostable plastics, and, beginning on June 1, 2023, requiring reusable foodware for On-premises dining, and finding the amendments to be exempt under the California Environmental Quality Act (CEQA). STAFF REPORT ORDINANCE 2.K RENEWAL OF SURF SCHOOL LICENSE AGREEMENTS Staff Recommendation: Adopt a resolution authorizing the City Manager to execute one-year license agreements with up to two one-year mutual extensions, with Pillar Point Surf School, Blue Swell Surf School, Sea, Surf & Fun, and Tommy Tsunami. STAFF REPORT RESOLUTION ADJOURNMENT

CITY COUNCIL AGENDA REGULAR MEETING CITY OF HALF MOON BAY TUESDAY, DECEMBER 20, 2022 REMOTE PARTICIPATION (SEE NEXT PAGE) Debbie Ruddock, Mayor Deborah Penrose, Vice Mayor Robert Brownstone, Councilmember Joaquin Jimenez, Councilmember Harvey Rarback, 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. Those wishing to speak on a Public Hearing matter will be called forward at the appropriate time during the Public Hearing 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 and the Half Moon Bay Library 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/ 1

SPECIAL REMOTE PARTICIPATION PROTOCOLS This meeting will be held entirely by teleconference. All Councilmembers and staff will only participate via the Zoom platform using the process described below. The meeting is being conducted pursuant to recent amendments to the teleconference rules required by the Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when local officials have recommended social distancing (AB 361). The purpose of AB 361 is to provide the safest environment for the public, elected officials, and staff while allowing for continued operation of the government and public participation during the COVID‐19 pandemic. This meeting will be conducted via Zoom Webinar and live Spanish interpretation will be available within the Zoom platform. Members of the public are welcome to login into the webinar as Attendees. 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/95535614263 or join by phone at 669‐900‐9128, using Webinar ID 955‐3561‐4263. If joining by phone, use *9 to raise your hand, *6 to mute and unmute. CALL TO ORDER / ROLL CALL APPROVAL OF AGENDA PUBLIC FORUM 2022 STATE OF THE CITY ADDRESS 1. CONSENT CALENDAR 1.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 1.B FINAL RESULTS OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION Staff Recommendation: Adopt a resolution declaring the final results of the November 8, 2022 General Municipal Election. STAFF REPORT RESOLUTION ADMINISTRATION OF OATH OF OFFICE TO NEWLY-ELECTED COUNCILMEMBERS REMARKS BY OUTGOING MAYOR SELECTION OF MAYOR AND VICE MAYOR FOR 2023 REMARKS BY INCOMING MAYOR 2

2. CONSENT CALENDAR 2.A WAIVE READING OF RESOLUTIONS AND ORDINANCES 2.B 2023 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2023 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 2.C ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Staff Recommendation: Adopt a resolution receiving the City of Half Moon Bay Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022 STAFF REPORT RESOLUTION ATTACHMENT 2 2.D RE-RATIFICATION OF RESOLUTION TO CONTINUE HOLDING PUBLIC MEETINGS REMOTELY (AB 361) Staff Recommendation: By motion, in accordance with Assembly Bill 361, re-ratify the findings in Resolution No. 2021-80 to continue conducting the City’s Council, Commission, and Committee meetings remotely due to health and safety concerns to the public due to COVID-19. STAFF REPORT 2.E 2023 CALENDAR OF CITY COUNCIL MEETINGS Staff Recommendation: By motion, adopt the City Council Calendar for 2023. STAFF REPORT ATTACHMENT 3

2.F AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2022 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2022. STAFF REPORT 2.G WARRANTS FOR THE MONTH OF NOVEMBER 2022 Staff Recommendation: Accept the warrants list for the month of November 2022 STAFF REPORT ATTACHMENT 1 2.H CONSOLIDATED COASTAL DEVELOPMENT PERMIT--CALIFORNIA BROADBAND MIDDLE MILE NETWORK PROJECT Staff Recommendation: Adopt a resolution authorizing the City Manager to submit a letter to the California Coastal Commission in support of a consolidated Coastal Development Permit (CDP) application for the Broadband Middle Mile Network (BMMN) project and further authorizing the California Coastal Commission assume the lead agency role. STAFF REPORT RESOLUTION 2.I ORDINANCE ADOPTING THE 2022 EDITIONS OF THE CALIFORNIA BUILDING STANDARDS CODE - SECOND READING Staff Recommendation: Waive second reading and adopt an ordinance amending Chapter 14.04 of the Half Moon Bay Municipal Code, adopting by reference the 2022 Edition of the California Building Standards Code, with local amendments, and finding the amendments to be exempt from environmental review under the California Environmental Quality Act (CEQA). STAFF REPORT ORDINANCE RESOLUTION 4

2.J DISPOSABLE FOODWARE ORDINANCE UPDATE - SECOND READING Staff Recommendation: Waive second reading and adopt an ordinance amending Chapter 7.30 of the Half Moon Bay Municipal Code entitled “Disposable Foodware” regarding food facilities’ provision of single-use foodware accessories, the removal of language surrounding fluorinated chemicals, the removal of language surrounding BPI certified compostable plastics, and, beginning on June 1, 2023, requiring reusable foodware for On-premises dining, and finding the amendments to be exempt under the California Environmental Quality Act (CEQA). STAFF REPORT ORDINANCE 2.K RENEWAL OF SURF SCHOOL LICENSE AGREEMENTS Staff Recommendation: Adopt a resolution authorizing the City Manager to execute one-year license agreements with up to two one-year mutual extensions, with Pillar Point Surf School, Blue Swell Surf School, Sea, Surf & Fun, and Tommy Tsunami. STAFF REPORT RESOLUTION ADJOURNMENT 5

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY AGENDA REPORT For meeting of: December 20, 2022 TO: Honorable Mayor and City Council VIA: Matthew Chidester, City Manager FROM: Jessica Blair, Communications Director / City Clerk TITLE: FINAL RESULTS OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION ______________________________________________________________________________ RECOMMENDATION: Adopt a resolution declaring the final results of the November 8, 2022 General Municipal Election. FISCAL IMPACT: None associated with this action. STRATEGIC ELEMENT: This recommendation supports the Inclusive Governance Element. BACKGROUND: A General Municipal Election was held in Half Moon Bay on November 8, 2022 for the purpose of electing one councilmember for District 4 to a four-year term. Councilmembers for Districts 1 and 5 were appointed at the August 19, 2022 City Council meeting due to lack of sufficient candidates resulting in only one candidate per district. The County of San Mateo Elections Department has canvassed the votes and certified the elections results. The City is also required to certify the election results. ATTACHMENT: Resolution Declaring the Final Results of the November 8, 2022 General Municipal Election 6

RESOLUTION NO. C-2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2022 DECLARING THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW WHEREAS, a Municipal Election was held and conducted in the city of Half Moon Bay on Tuesday, November 8, 2022, as required by law; and WHEREAS, notice of the election was given in time, form, and manner as provided by law; voting precincts were properly established; election officers were appointed; and in all respects the election was held and conducted and the votes were cast, received, and canvassed, and the returns made and declared in time, form, and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in General Law Cities; and WHEREAS, the County Elections Department canvassed the returns of the Election and has certified the results, the results are received, and made a part hereof as Exhibit A. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HALF MOON BAY, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the whole number of ballots cast in District 4 was 1,385. Section 2. That the names of persons voted for at the election for Members of the City Council are as follows: Bill Balson, District 4 Debbie Ruddock, District 4 David C. Eblovi, District 4 Section 3. That the number of votes given at each precinct and the number of votes given in the city to each of the persons above named for the respective offices for which the persons were candidates were as listed in Exhibit A. Section 4. That the City Council does declare and determine that: Debbie Ruddock was elected as District 4 Member of the City Council for the full term of four years. Section 5. That the City Clerk shall enter on the records of the City Council of the City a statement of the result of the election showing: (1) the whole number of votes (ballots) cast in the city; (2) the names of the persons voted for; (3) the measure voted upon; (4) for what office each person was voted for; and (5) the total number of votes given to each person and for and against each measure. Section 6. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City 7

Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected. Section 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. ***************************************************************** I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 20 th day of December, 2022 by the City Council of Half Moon Bay by the following vote: AYES, Councilmembers: NOES, Councilmembers: ABSENT, Councilmembers: ABSTAIN, Councilmembers: ATTEST: APPROVED: ___________________________ _____________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor 8

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Page 1 of 5 BUSINESS OF THE CITY OF HALF MOON BAY CITY COUNCIL AGENDA REPORT For the Meeting of: December 20, 2022 TO: Honorable Mayor and City Council VIA: Mathew Chidester, City Manager FROM: Jill Ekas, Community Development Director Scott Phillips, Senior Planner TITLE: 2023 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) RECOMMENDATION: Adopt a resolution setting the 2023 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 development associated with these allocations will also have a limited fiscal impact. 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 17

system.” Measure D allocations are reviewed and authorized annually by the City Council per the Municipal Code. This report provides an update on the annual Measure D allocations and recommends 67 total allowable residential unit allocations for 2023. 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. The 2020 U.S. Census provides the most recent Census data for a baseline to add the 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 Population1 New Units 2 Persons Per House- hold Calculated Additional Population 3 New Projected Population1 Base Allocation 4 Allocation Distribution Total Annual AllocationDowntown 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 1 2020 U.S. Census Population was utilized for the 2021 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 yea 4 1% of New Projected Population divided by average 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 calendar year by the average PPH (2.67 from the 2021 Census data, used for the 2022 baseline), then adding the result to the projected population from the previous year. With the estimated population count and occupied households count from the 2021 Census data, an updated persons per household count was calculated at 2.67 as compared to 2.58 from last year’s allocation, which was based on 2020 Census data. The increase in persons per households 18

results in a modest decrease in the number of new dwelling units allowed for 2023 compared to the number of new dwelling units allowed in 2022. The base allocation of 1% is split evenly between Downtown and outside of the 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 2023, reserving 45 dwelling unit allocations for the Downtown Area, and 22 dwelling unit allocations outside Downtown. Table 2: Dwelling Unit Allocations – 2023 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.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 2021. 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 great 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 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 and 2022, all allocations were issued, including within and outside Downtown. Building permit issuance lags Measure D allocation. Some developments, such as the Hilltop Mobile Home Park proposal which received 32 allocations over a two-year period, take up a significant number of Measure D allocations, but are just starting the CDP review process. Others 19

move through quickly, such as ADUs for which the CDP process is expedited. Staff anticipates that building permit issuance will increase within the next few 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 Average 68 44 25 Development Phasing Plans and Unit Prioritization: The City has not received applications for development phasing plans for Measure D allocations for several years. 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). 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” establishes the criteria to evaluate applications and distribute residential dwelling unit allocations. The Measure D Allocation System is structured to prioritize projects in January of each year to evaluate and prioritize applications based upon competitive rating criteria (Sections 17.06.120 and 17.06.275). A detailed staff report to the Planning Commission in March 2020 outlined this process and presented that certain aspects of the rating system, as codified in 2010, are no longer especially relevant. Staff prepared an interpretation document for Planning Commission concurrence that has guided rating when there are more applications received during the annual January application window than available allocations, as occurred in 2021 and 2022. 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 2023 was prepared by Applied Development Economics and the summary of the analysis is included as Attachment 2. The fiscal impact analysis indicates the new units and residents would generate approximately $35,752 per year in General Fund revenues and require about $45,246 in General Fund expenditures, for an annual estimated deficit of $9,494 in 2023. This is similar to the 2022 estimated deficit of $7,458. 20

Notably, 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 fiscal impact analysis. ATTACHMENTS: 1. Resolution Establishing the Residential Dwelling Unit Allocation for 2023 2. Fiscal Impact Analysis Spreadsheet of New Residential Development, prepared by Applied Development Economics, November 2022 21

RESOLUTION NO. C-22-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ESTABLISHING THE RESIDENTIAL DWELLING UNIT ALLOCATIONS FOR 2023 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 31 st 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 allo