City Council

CITY COUNCIL AGENDA REGULAR MEETING CITY OF HALF MOON BAY TUESDAY, DECEMBER 1, 2020 REMOTE PARTICIPATION (SEE NEXT PAGE) Adam Eisen, Mayor Robert Brownstone, Vice Mayor Deborah Penrose, Councilmember Harvey Rarback, 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. 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 PROTOCOLS In accordance with Governor Newsom’s Executive Order No-29-20, this will be a teleconference meeting without a physical location to help stop the spread of COVID-19. This meeting will be conducted entirely by remote participation, in compliance with the Governor's Executive Order N-29-20 allowing for deviation of teleconference rules required by the Ralph M. Brown Act. This meeting will be conducted via Zoom Webinar. 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. Written comments (jblair@hmbcity.com) submitted by 5:00 p.m. on meeting day will be added to the online agenda packet and emailed to the City Council. The meeting will also be streamed on Channel 27, on pacificcoast.tv, on Facebook in English at www.facebook.com/cityofhalfmoonbay and in Spanish at www.facebook.com/halfmoonbayrecreation. Please click to join the webinar: https://zoom.us/j/93627876187 or join by phone at 669-900-9128, using Webinar ID 936-2787-6187. CALL TO ORDER / ROLL CALL PUBLIC FORUM PROCLAMATIONS AND PRESENTATIONS COUNTY OF SAN MATEO - CONTACT TRACING PRESENTATION MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE REPORT OUT FROM RECENT CLOSED SESSION MEETINGS CITY MANAGER UPDATES TO COUNCIL COVID-19 UPDATE POPLAR PILOT PARKING PROJECT UPDATE 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 Abatement District Board of Trustees for a four-year term commencing on January 4, 2021. STAFF REPORT

1.C APPROVE CITY’S RESPONSE TO THE OCTOBER 7, 2020 GRAND JURY REPORT ENTITLED “RANSOMWARE: IT IS NOT ENOUGH TO THINK YOU ARE PROTECTED” Staff Recommendation: By motion, authorize the Mayor to sign and submit a letter of response to the October 7, 2020 Grand Jury Report titled “Ransomware: It Is Not Enough To think You Are Protected” no later than January 5, 2020. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 1.D AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2020 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2020. STAFF REPORT 1.E AGREEMENT WITH STEPFORD, INC. FOR INFORMATION TECHNOLOGY SERVICES Staff Recommendation: Adopt a resolution authorizing the City Manager to execute a revision to the three-year contract agreement with Stepford, Inc. for fiscal years 2019 through 2022. The revisions will cover the remaining two years of the agreement beginning July 1, 2020 and ending June 30, 2022 for the continuation of information technology services at a cost of $180,180 per year. STAFF REPORT RESOLUTION 1.F 2021 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2021 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 66 residential dwelling units, 44 units for Downtown and 22 units outside of Downtown. STAFF REPORT RESOLUTION ATTACHMENT 2

1.G FIRST AMENDMENT TO THE HALF MOON BAY HISTORY ASSOCIATION LEASE AGREEMENT FOR 503 JOHNSTON STREET Staff Recommendation: Adopt a resolution authorizing the City Manager to execute a First Amendment to the Lease Agreement with the Half Moon Bay History Association by granting a one-year extension to begin construction of a new museum on the history property located at 503 Johnston Street. STAFF REPORT RESOLUTION ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 2. ORDINANCES AND PUBLIC HEARINGS 3. RESOLUTIONS AND STAFF REPORTS 3.A PROPOSED ACQUISITION OF THE COASTSIDE INN BY THE COUNTY OF SAN MATEO FOR USE AS AN EMERGENCY HOMELESS SHELTER Staff Recommendation: Receive a report on the County’s proposed acquisition of the Coastside Inn, located at 230 Cabrillo Highway S, in Half Moon Bay, for use as emergency shelter for homeless residents on the Coastside during the COVID-19 pandemic, and future uses to be determined. STAFF REPORT ATTACHMENT 1 3.B UPDATE ON LOCAL RECOVERY EFFORTS FROM COVID-19 AND DEVELOPMENT OF RECOMMENDATIONS TOWARD A MORE RESILIENT, VIBRANT, AND DIVERSIFIED COASTSIDE ECONOMY Staff Recommendation: Receive an update on efforts to assist local businesses and the Coastside community in recovery from COVID-19 and in developing recommendations toward a more resilient, vibrant, and diversified Coastside economy. STAFF REPORT

3.C 880 STONE PINE ROAD ACQUISITION Staff Recommendation: Adopt a resolution, in relation to the acquisition of 880 Stone Pine Road from the Peninsula Open Space Trust, for use as the City’s corporation yard, authorizing: 1. An additional deposit of $25,000 to POST, if the City chooses to exercise an extension of the escrow period; 2. The use of no more than $2,180,000 in Operating Reserves to close escrow on the acquisition; 3. Receipt of iBank financing proceeds for reimbursement of expenses related to the acquisition and potential improvements to the property; and 4. Authorizing the City Manager to take any required actions to complete the transaction, including accepting any non-substantive changes to the terms and conditions of the acquisition and financing. STAFF REPORT RESOLUTION 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 1, 2020 REMOTE PARTICIPATION (SEE NEXT PAGE) Adam Eisen, Mayor Robert Brownstone, Vice Mayor Deborah Penrose, Councilmember Harvey Rarback, 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. 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 PROTOCOLS In accordance with Governor Newsom’s Executive Order No-29-20, this will be a teleconference meeting without a physical location to help stop the spread of COVID-19. This meeting will be conducted entirely by remote participation, in compliance with the Governor's Executive Order N-29-20 allowing for deviation of teleconference rules required by the Ralph M. Brown Act. This meeting will be conducted via Zoom Webinar. 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. Written comments (jblair@hmbcity.com) submitted by 5:00 p.m. on meeting day will be added to the online agenda packet and emailed to the City Council. The meeting will also be streamed on Channel 27, on pacificcoast.tv, on Facebook in English at www.facebook.com/cityofhalfmoonbay and in Spanish at www.facebook.com/halfmoonbayrecreation. Please click to join the webinar: https://zoom.us/j/93627876187 or join by phone at 669-900-9128, using Webinar ID 936-2787-6187. CALL TO ORDER / ROLL CALL PUBLIC FORUM PROCLAMATIONS AND PRESENTATIONS COUNTY OF SAN MATEO - CONTACT TRACING PRESENTATION MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE REPORT OUT FROM RECENT CLOSED SESSION MEETINGS CITY MANAGER UPDATES TO COUNCIL COVID-19 UPDATE POPLAR PILOT PARKING PROJECT UPDATE 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 Abatement District Board of Trustees for a four-year term commencing on January 4, 2021. STAFF REPORT 2

1.C APPROVE CITY’S RESPONSE TO THE OCTOBER 7, 2020 GRAND JURY REPORT ENTITLED “RANSOMWARE: IT IS NOT ENOUGH TO THINK YOU ARE PROTECTED” Staff Recommendation: By motion, authorize the Mayor to sign and submit a letter of response to the October 7, 2020 Grand Jury Report titled “Ransomware: It Is Not Enough To think You Are Protected” no later than January 5, 2020. STAFF REPORT ATTACHMENT 1 ATTACHMENT 2 1.D AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2020 Staff Recommendation: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2020. STAFF REPORT 1.E AGREEMENT WITH STEPFORD, INC. FOR INFORMATION TECHNOLOGY SERVICES Staff Recommendation: Adopt a resolution authorizing the City Manager to execute a revision to the three-year contract agreement with Stepford, Inc. for fiscal years 2019 through 2022. The revisions will cover the remaining two years of the agreement beginning July 1, 2020 and ending June 30, 2022 for the continuation of information technology services at a cost of $180,180 per year. STAFF REPORT RESOLUTION 1.F 2021 RESIDENTIAL DWELLING UNIT ALLOCATION PURSUANT TO HALF MOON BAY MUNICIPAL CODE CHAPTER 17.06 (MEASURE D) Staff Recommendation: Adopt a resolution setting the 2021 Residential Dwelling Unit Allocation and Administration System pursuant to Half Moon Bay Municipal Code Chapter 17.06 for 66 residential dwelling units, 44 units for Downtown and 22 units outside of Downtown. STAFF REPORT RESOLUTION ATTACHMENT 2 3

1.G FIRST AMENDMENT TO THE HALF MOON BAY HISTORY ASSOCIATION LEASE AGREEMENT FOR 503 JOHNSTON STREET Staff Recommendation: Adopt a resolution authorizing the City Manager to execute a First Amendment to the Lease Agreement with the Half Moon Bay History Association by granting a one-year extension to begin construction of a new museum on the history property located at 503 Johnston Street. STAFF REPORT RESOLUTION ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 2. ORDINANCES AND PUBLIC HEARINGS 3. RESOLUTIONS AND STAFF REPORTS 3.A PROPOSED ACQUISITION OF THE COASTSIDE INN BY THE COUNTY OF SAN MATEO FOR USE AS AN EMERGENCY HOMELESS SHELTER Staff Recommendation: Receive a report on the County’s proposed acquisition of the Coastside Inn, located at 230 Cabrillo Highway S, in Half Moon Bay, for use as emergency shelter for homeless residents on the Coastside during the COVID-19 pandemic, and future uses to be determined. STAFF REPORT ATTACHMENT 1 3.B UPDATE ON LOCAL RECOVERY EFFORTS FROM COVID-19 AND DEVELOPMENT OF RECOMMENDATIONS TOWARD A MORE RESILIENT, VIBRANT, AND DIVERSIFIED COASTSIDE ECONOMY Staff Recommendation: Receive an update on efforts to assist local businesses and the Coastside community in recovery from COVID-19 and in developing recommendations toward a more resilient, vibrant, and diversified Coastside economy. STAFF REPORT 4

3.C 880 STONE PINE ROAD ACQUISITION Staff Recommendation: Adopt a resolution, in relation to the acquisition of 880 Stone Pine Road from the Peninsula Open Space Trust, for use as the City’s corporation yard, authorizing: 1. An additional deposit of $25,000 to POST, if the City chooses to exercise an extension of the escrow period; 2. The use of no more than $2,180,000 in Operating Reserves to close escrow on the acquisition; 3. Receipt of iBank financing proceeds for reimbursement of expenses related to the acquisition and potential improvements to the property; and 4. Authorizing the City Manager to take any required actions to complete the transaction, including accepting any non-substantive changes to the terms and conditions of the acquisition and financing. STAFF REPORT RESOLUTION 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 1, 2020 TO: Honorable Mayor and City Council VIA: Bob Nisbet, 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 4, 2021. 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 on March 7, 2017, for a term of four years. The District has asked that the City align its appointment date to be in compliance with Health and Safety Code Section 2020, which dictates that terms of office for this board shall commence on the first Monday in January and can extend for two or four years. The District Manager has asked that the City Council make an appointment to expire on December 31, 2022, or December 31, 2024. 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

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY AGENDA REPORT For meeting of: December 1, 2020 TO: Honorable Mayor and City Council FROM: Bob Nisbet, City Manager TITLE: APPROVE CITY’S RESPONSE TO THE OCTOBER 7, 2020 GRAND JURY REPORT ENTITLED “RANSOMWARE: IT IS NOT ENOUGH TO THINK YOU ARE PROTECTED” RECOMMENDATION: By motion, authorize the Mayor to sign and submit a letter of response to the October 7, 2020 Grand Jury Report titled “Ransomware: It Is Not Enough To think You Are Protected” no later than January 5, 2020. FISCAL IMPACT: There is no fiscal impact associated with responding to the Grand Jury Report. STRATEGIC ELEMENT: This action supports the Inclusive Governance Elements of the Strategic Plan. BACKGROUND: The Grand Jury issued a report on October 7, 2020 on the risks of ransomware and other Information Technology security recommendations and best practices. The San Mateo County Grand Jury report is included as Attachment 1. DISCUSSION: As required by the San Mateo County Civil Grand Jury, each City including Half Moon Bay is obligated to respond to the Findings and Recommendations contained in the report by January 5, 2020. Attachment 2 includes the draft letter of response. The October 7, 2020 Report focuses on recommendations and best practices as recommended by the Grand Jury, U.S. Department of Homeland Security, and the FCC. As is detailed in the response, many of the recommendations and best practices have already been completed as part of an annual review of City security measures. The City generally concurs with the Grand Jury report and believes that we should always be looking at ways to improve our IT security measures which include providing staff with the best tools along with education on best practices to mitigate possible risk to City technology infrastructure. Many of the recommendations and requests had already been completed prior to the publication of this Grand Jury report. The City regularly reviews and plans its security 7

measures and at least once a year takes steps to mitigate the latest risks to its security. In an effort to greater enhance the measures taken to keep City technology safe and reduce risks, the City will consider enlisting the tools and services provided by the U.S. Department of Homeland Security and the FCC as an extra measure to ensure the continued security and reliability against the risks posed by cyber criminals. ATTACHMENT: 1. San Mateo County Grand Jury Report “Ransomware: It Is Not Enough To Think You Are Protected” 2. Response Letter to San Mateo Grand Jury 8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

CITY OF HALF MOON BAY 501 Main Street Half Moon Bay, CA 94019 December 1, 2020 Honorable Danny Y. Chou Judge of the Superior Court C/O Jenarda Dubois Hall of Justice 400 County Center; 8th Floor Redwood City, CA 94063-1655 Subject: October 7, 2020 Grand Jury Report: “Ransomware: It Is Not Enough To Think You Are Protected” Dear Honorable Judge Chou: The City Council of the City of Half Moon Bay, at its December 1, 2020 meeting, reviewed and approved the following responses to the San Mateo County Civil Grand Jury 2019-2020 Report entitled “Ransomware: It Is Not Enough To Think You Are Protected” Findings The report includes eight (8) findings covering a wide range of technology issues. The City of Half Moon Bay (City) agrees with each of the eight (8) findings (F1 through F8). Recommendations R1: Each of the governmental entities in San Mateo County with an IT department or IT function (whether in-house, handled by another government unit or outsourced to a private enterprise) as listed in Appendix F, should by November 30, 2020, make a request for a report from their IT organization that addresses the concerns identified in the report, specifically: 1. System Security (Firewalls, Anti-malware/Antivirus software, use of subnets, strong password policies, updating/patching regularly) 2. Backup & Recovery (In the event of an attack, can you shut down your system quickly? What is being backed up, how it is being backed up, when are backups run, and where are the backups being stored? Have the backups been tested? Can you fully restore a Server from a backup?) 3. Prevention (turning on email filtering, setting up a message rules to warn users, providing employee training on phishing and providing a reporting system to flag suspect content) Response: The recommendation has been completed. The City requested information from the IT department which provided information on the above recommendations. The City then confirmed, verified, and improved security in all three categories. The City has now met or exceeded the recommendations. 33

CITY OF HALF MOON BAY 501 Main Street Half Moon Bay, CA 94019 R2: These confidential internal reports should be provided to the governing body by June 30, 2021. This report should describe what actions have already been taken and which will be given timely consideration for future enhancements to the existing cybersecurity plan. Response: The recommendation has already been completed as part of an annual security review. R3: Given the results of their internal reports, governmental entities may choose to request further guidance by means of a Cybersecurity review from the U.S. Department of Homeland Security and/or a cyber hygiene assessment from the County Controller’s Office. Response: The recommendation will not be implemented at this time, but we may choose to do so in the future. The City already has a 3rd party auditor that reviews security periodically. R4: Given the results of their internal reports, governmental entities may choose to ask their IT departments to review their own Cybersecurity Plan with the detailed template provided by the FCC’s Cybersecurity Planning Guide and consider customizing it using FCC’s Create Custom Cybersecurity Planning Guide Tool. Response: The recommendation has not yet been implemented. The City will implement this recommendation within the next 6 months. Thank you for your consideration of the foregoing. Sincerely, Adam Eisen Mayor 34

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY AGENDA REPORT For meeting of: December 1, 2020 TO: Honorable Mayor and City Council VIA: Bob Nisbet, City Manager FROM: Lisa Lopez, Administrative Services Director Kenneth Stiles, Senior Accountant TITLE: AB1600 REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 2020 ______________________________________________________________________________ RECOMMENDATION: Accept the AB 1600 Report on Development Impact Fees for fiscal year ended June 30, 2020. FISCAL IMPACT: There is no fiscal impact associated with this item. All development impact fees collected to date were committed or expended within five years as of June 30, 2020 and are not subject to refund. STRATEGIC ELEMENT: This recommendation supports the Inclusive Governance, Fiscal Sustainability and Infrastructure and Environment Elements. BACKGROUND: Every year the City prepares an annual report for each fund established to account for public facilities fees, in accordance with the provisions of the State of California and Government Code Section 66006, which requires the City to make available to the public certain information regarding development impact fees for each fund within 180 days after the end of each fiscal year. The report must include the beginning and ending balances by public facility type for the fiscal year and the amount of fees, interest, other income, and expenditures for each fund. Cities and counties often charge fees on new development to mitigate their impacts on public facilities. For example, traffic mitigation fees are used to mitigate traffic impacts by improving streets, bike lanes, and sidewalks. These fees are commonly known as development impact fees. Assembly Bill (AB) 1600, enacted in 1987, applies to development fees established, increased, or 35

imposed on or after January 1, 1989. AB 1600 enacts Government Code Sections 66000-66003 that generally contain four requirements: 1. A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of the fees and to establish a “nexus” or connection between a development project or class of projects and the public improvement being financed with the fee. 2. The fee revenue must be segregated from the general fund in order to avoid commingling of public improvement fees and the general fund. 3. If a local jurisdiction has had possession of a development fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money each fiscal year after the five years has expired. 4. If a local jurisdiction cannot make the findings required under paragraph 3, then the City must go through a refund procedure. DISCUSSION: The storm drainage fees, traffic mitigation fees, park facility fees, sewer connection fees, and capital outlay fees that the City of Half Moon Bay collects qualify as development impact fees; and therefore, must comply with the above referenced Government Code Sections. As required by law, these fees are segregated and accounted for in funds separate from the General Fund. The sections below provide detailed project discussion, analysis, and financial data tables by fund. Traffic Mitigation Fees (Accounted for in Fund 112 - Traffic Mitigation Fund) Traffic mitigation fees are used to construct improvements to mitigate the City’s traffic and transportation impacts resulting from new developments occurring in Half Moon Bay. These funds are used by the City to reduce traffic congestion and to provide for traffic safety and street improvements such as signals, lighting, and signage within the city. 36

Analysis: The funds generated by the traffic mitigation fees have averaged $777K annually over the last five years. They will be used in connection with the Five-Year Capital Improvement (CIP) Plan. In FY 2019-20 the funds were primarily used to provide pedestrian, circulation, and drainage improvements at the intersection of Highway 1 and Kelly Avenue.2015-16 2016-17 2017-18 2018-19 2019-20 FUND 112 Beginning Fund Balance 237,672 380,980 850,093 1,655,380 4,073,334 Revenue Citywide Impact Fees 218,108 282,784 854,344 2,411,632 118,386 Interest & Unrealized Gains 2,445 4,487 15,197 49,125 131,541 Transfers In from Other Funds 220,000 Total Revenues 220,553 507,271 869,541 2,460,757 249,927 Expense Other Expenditures 30,903 31,155 31,481 31,475 32,055 Projects Traffic Signal Coordination (0570) 45,730 (20,500) Hwy 1/Kelly Avenue Intersection Improvements (0571) 612 27,503 32,773 11,328 79,483 Transfers Out to Other Funds - - - - Total Expenditures 77,245 38,158 64,254 42,803 111,538 FUND 112 Ending Fund Balance 380,980 850,093 1,655,380 4,073,334 4,211,723 37

Storm Drain Fees (Accounted for in Fund 152 – Storm Drain Improvements) Storm Drain Improvement fees are assessed against new or remodeled construction projects and are used for drainage improvements. Analysis: The funds generated from the storm drain fees have averaged $8.1K annually over the last five years. They are used to fund various capital improvement projects for drainage improvements as outlined in the Five-Year Capital Improvement Plan. Funds were primarily expended on the Kelly / Highway 1 drainage improvements.2015-16 2016-17 2017-18 2018-19 2019-20 FUND 152 Beginning Fund Balance 578,654 555,431 836,220 1,292,064 1,534,533 Revenue Citywide Impact Fees 5,817 11,687 6,643 5,134 11,175 Grants Interest & Unrealized Gains 3,604 4,430 5,472 33,098 35,124 Transfers In from Other Funds 200,000 462,700 535,000 292,495 150,000 Total Revenues 209,420 478,817 547,115 330,727 196,299 Expense Other Expenditures 94,061 20,617 76,736 37,980 Projects Kehoe Ditch Implementation 83,355 Storm Drain Master Plan - Phase 2 (0563) 149,288 32,109 42,495 9,230 Stormwater Trash Reduction (0558) 4,170 Seymour Ditch Erosion Project (0592) 63,000 25,000 3,527 Kehoe Water Course Enhancement (534) 5,622 Kelly / Hwy 1 Drainage (9003) 577,587 Transfers Out to Other Funds 4,689 3,161 2,292 152,412 Total Expenditures 232,643 198,029 91,273 88,258 777,127 FUND 152 Ending Fund Balance 555,431 836,220 1,292,064 1,534,533 953,705 38

Park Fees (Accounted for in Fund 125 - Park Development Fund) The City uses new development fees to fund the acquisition, development, and capital improvements of the City’s parks, recreation areas, and bicycle trails. Every subdivider shall be required to dedicate a portion of land, or pay a fee in lieu thereof, for the purpose of providing park and/or recreational space/facilities. Analysis: The park in-lieu funds generated by development impact fees have averaged $253.3K annually over the last five years. These funds are used for parks, trails and recreational improvements, as outlined in the Five-Year Capital Improvement Plan. New projects began in FY2020 includes the Bikeway Connectivity Project and the Stair Repair at Canada Verde Creek.2015-16 2016-17 2017-18 2018-19 2019-20 FUND 125 Beginning Fund Balance 553,656 406,711 1,014,840 1,514,105 2,775,042 Revenue Citywide Impact Fees 106,014 562,822 122,282 289,261 186,441 Grants 1,293,156 4,735 5,000 Miscellaneous 10,000 (5,000) 5,000 5,000 - Interest & Unrealized Gains 790 - 12,886 48,949 100,978 Reimbursement - Non Govt 479,055 Transfers In from Other Funds 45,000 882,890 541,324 804,000 1,433,078 Total Revenues 1,454,960 1,445,446 681,493 1,626,265 1,725,497 Expense Other Expenditures 53,762 13,872 18,181 24,767 26,830 Projects Seymour Bridge Replacement (0542) 39,322 608,595 3,032 Mac Dutra Park Improvement 177,662 Skate Park Relocation (0548) 5,000 4,372 Carter Park Access Study (0551) 105,268 6,875 1,286 Pilarcitos Trail Bridge Replacement (0561) 1,220,890 6,276 5,802 2,157 Coastal Trail Erosion (0574) 87,334 1,988 Bike and Ped Trail Master Plan (0580) 43,730 75,911 38,317 10,392 Parks Master Plan (0583) 62,062 66,764 74,295 Smith Field Tot Lot (0584) 3,420 Rehab of Poplar Pedbike Path (0596) 8,647 138,837 23,217 Vertical Access at Poplar Beach (0597) 4,943 152,000 Parks Master Plan Implementation Program (0609) 456 1,691 Ocean View Park - Restrooms and Site Improvements (0610) 29,778 619,745 Carter Park Improvements (0611) 31,597 382,687 Poplar Beach Gateways Plan (0617) 882 41,508 Coastal Bluff Preservation (0618) 18,782 14,865 Bike and Ped Master Plan (0615) 2,405 Bikeway Connectivity Project ‐ North (619) 80,716 Stair Repair At Cañada Verde Creek (9007) 32,400 Transfers Out (790) 781 617 517 630,794 Total Expenditures 1,601,905 837,318 182,228 365,328 2,019,249 F