Half Moon Bay City Council Meeting - November 9, 2023

The Half Moon Bay City Council met on November 9, 2023, at 7:00 PM at the Adcock Community Center. The meeting included proclamations, updates on community safety and downtown streetscapes, a unanimous consent calendar, and major discussions on tenant protections and the city's financial outlook. The meeting also featured a graduation ceremony for the Future Leaders Civics Academy and an update on the Coastside Victims Fund.

Proclamations and Presentations

• Future Leaders Civics Academy Graduation: Certificates were awarded to graduating students. City Clerk Jessica Blair praised the program and the students' engagement.
• Coastside Victims Fund Update: Amber Surria (Mavericks Community Foundation) and Wade Painter (San Mateo Credit Union) reported that the fund raised and distributed $254,142 to 46 victims affected by the January 2023 shooting. The fund is now closed, with 100% of contributions going directly to victims. Contributors included California Wellness Foundation, Chan Zuckerberg Initiative, and local donations via Coastside Gives (over $17,000).
• United Against Hate Week Proclamation: The Council proclaimed the week as United Against Hate Week, reaffirming the city's commitment to diversity and inclusion. Coast Pride was unable to accept in person.

Consent Calendar

• Items 1A–1D were approved unanimously:
  • 1A: Waiving reading of resolutions and ordinances.
  • 1B: Ordinance adding Chapter 13.22 (Fats, Oil, Grease and Sand) to the Municipal Code (second reading).
  • 1C: Final acceptance of the Main Street Safety Improvements Project (CIP No. 1009).
  • 1D: Final acceptance of the Corporation Yard Improvements Project (CIP No. 9023).

Public Comments & Testimony

• Pillar Ridge/Oak Avenue Safety: A resident (Lourdes Patino) expressed gratitude for city actions to improve lighting and tree trimming in the neighborhood.
• Tenant Protections Action Plan (Item 3B): Multiple speakers both in person and via Zoom provided testimony:
  • Supporters: Rocío Avila (farm worker and community promoter), Lourdes Patino, Carolina Carvajal, Tony Serrano, Enrique Bazán, Ray Abaleya, Joanne Rakoski, and Alice urged the Council to adopt rent control and tenant protections, citing high rents, overcrowding, mental health impacts, and displacement of low-income families. Enrique Bazán submitted 27 letters from community members. Ray Abaleya presented data from a countywide assessment linking housing costs to substance abuse and depression.
  • Opponents: Vance Verderami (owner of Kanyada Cove Mobile Home Park), Fernando Peña and Elaine Gilbreck (San Mateo County Association of Realtors), Linda Cross Anderson (realtor), Antonio (California Apartment Association), and Saulo Londonio (WMA, representing mobile home park owners) argued against rent control, citing administrative costs, negative impacts on mom-and-pop landlords, and potential unintended consequences. They emphasized existing state protections and urged alternative solutions like rental assistance and more housing production.

Discussion Items

• City Manager Updates:
  • Pillar Ridge/Oak Avenue Safety: City Manager Matthew Chittister announced actions in response to community concerns: improved lighting (city and PG&E), a limited-term license plate reader pilot (with privacy safeguards), and increased sheriff patrols. A broader discussion on license plate readers is scheduled for December 5.
  • Downtown Streetscapes Update: Karen Decker reported on community design workshops, highlighting support for safer crossings, parallel parking, improved wayfinding, and native landscaping. A summary memo will be posted online.
  • 880 Stone Pine Project Traffic Calming: John Dowdy presented plans for flashing beacon crosswalks, speed feedback signs, lane narrowing, and bicycle shareows to slow traffic on Stone Pine Road.
• Item 3A: JobTrain Agreement & Business Incubator: Staff recommended and the Council approved a professional services agreement with JobTrain (not to exceed $337,000 for November 1, 2023 – September 30, 2024) to provide jobseeker services and workforce development. The Council also authorized an RFQ (up to $200,000) to identify an operator for a business incubator at the Opportunity Center of the Coastside. The incubator will focus on climate resiliency and entrepreneurship. The motion passed unanimously.
• Item 3B: Tenant Protections Action Plan (Work Session):
  • Staff presented options for rent control, tenant protections, mobile home space rent control, and code enforcement relocation assistance. Approximately 350 multifamily units could be affected by rent control. Administrative costs were estimated at $150,000–$200,000 annually with startup costs of $300,000.
  • Council discussion revealed a split: Councilmember Rarback, Vice Mayor Jimenez, Councilmember Brownstone, and Mayor Penrose supported moving forward with rent control using the Costa Hawkins model (city enforcement, cap of 5% or CPI, whichever is lower), along with landlord licensing/registration, enhanced tenant protections (including subtenancy regulation and written lease requirements), and code enforcement relocation assistance. Councilmember Ruddock opposed due to the city's structural deficit and fiduciary responsibilities, though she supported stronger tenant protections. The majority agreed to table mobile home space rent control due to lack of community input.
  • Staff will draft ordinances consistent with the direction given and return to Council for further action.
• Item 3C: Financial and Treasurer's Report for Quarter Ended September 30, 2023:
  • Finance Manager Ken Styles presented the quarterly report. Key points:
    • Transient Occupancy Tax (TOT) is stagnating; budgeted $9.6M, received $960K (10% of budget).
    • Property tax revenue is expected to ramp up in December and April.
    • Expenditures are under budget (11% below the 25% benchmark).
    • Unassigned fund balance at end of FY 2022-23 is estimated at $1.4 million (up from $185K projected).
    • However, the city faces a structural deficit of $3.9 million for FY 2024-25, driven largely by a $2M increase in sheriff and dispatch costs.
    • Reserves stand at $11 million.
  • City Manager noted the need to make structural changes over the next two years to balance the budget. A cost allocation and fee study is underway, expected by mid-year.
  • The Council accepted the report unanimously.

Key Outcomes

• Consent Calendar: Approved unanimously.
• Item 3A (JobTrain & Incubator): Approved unanimously.
• Item 3B (Tenant Protections): Council directed staff to prepare ordinances for rent control (Costa Hawkins model with city enforcement, 5% or CPI cap, landlord licensing/registration), tenant protections (including subtenancy regulation, anti-discrimination, written lease requirements), and code enforcement relocation assistance. Mobile home space rent control was tabled. Staff will return with draft ordinances.
• Item 3C (Financial Report): Accepted unanimously.
• Special Meeting: A special study session on minimum wage will be scheduled for late November, possibly canceling the November 21 regular meeting.
• Upcoming: December 5 meeting will address license plate reader policy and further specifics on tenant protection ordinances.