Half Moon Bay City Council Regular Meeting - June 18, 2024

The Half Moon Bay City Council met on June 18, 2024, at 7:00 PM in a hybrid meeting at the Adcock Community Center. The council addressed a wide range of items including proclamations for Pride Month and Juneteenth, a 65th anniversary celebration for the city, consent calendar approvals, and major discussions on potential ballot measures for the November 5, 2024 election (a half-cent sales tax increase and amendments to Measure D), an increase in the Business Improvement District (BID) per-night assessment, funding for the Stone Pine Cove affordable farmworker housing project, renewal of community development contracts, the council priorities workplan for FY 2024-26, and adoption of the FY 2024-25 operating and capital budget.

Consent Calendar

• Items 1.A through 1.I were approved unanimously except for Items 1.G and 1.H, which were removed for separate discussion.
  • 1.A: Waive reading of resolutions and ordinances.
  • 1.B: Janitorial maintenance services contract award to Karla’s Janitorial & Suppliers, LLC for $182,514 (FY 2024-25) with two optional one-year extensions.
  • 1.C: Professional services agreement with American Debris Box and Portables, Inc. for portable toilet services, not to exceed $85,000.
  • 1.D: Lease agreement with Sharp Business Solutions for multifunction printers, not to exceed $50,000 over four years.
  • 1.E: Agreement with Pacific Coast Television for PEG access television services for two years.
  • 1.F: Community Services Financial Assistance (CSFA) grant program for FY 2024-25 with option to extend a second year.
  • 1.I: Salary schedule for represented and non-represented employees with a 3.0% base salary increase.
• Items 1.G and 1.H (Red Rock Volleyball Club and HMB Beach Volleyball Club license agreements) were considered separately. Both were approved unanimously after discussion about coastal development permits (CDPs) and public access. Staff noted a temporary CDP exemption for a pilot program and plans to bring a full CDP to the Planning Commission in fall 2024.

Public Comments & Testimony

• Rosio Avila (community organizer and agricultural worker) expressed full support for the 555 Kelly farmworker housing project, stating it allows agricultural workers to live with dignity and provides essential resources.
• Linda Goldstein (via Zoom) spoke strongly in favor of 555 Kelly, emphasizing the right to decent homes.
• Joanne Rakoski (via Zoom, member of Coastside Faith in Action) supported the farmworker housing plan, noting the urgent need for very low and extremely low-income housing despite some objections.
• Mike Ferrera (Half Moon Bay resident) raised concerns about the lack of maps in the staff report for the beach volleyball license agreements, urging more public information and scrutiny regarding coastal development permits.
• Kristalin (CEO of Coastside Chamber) reported that the business community was not in favor of the sales tax increase because higher costs are already a burden; she also spoke in favor of ADUs and agreed that Measure D amendments should be methodically considered.
• James Benjamin (Half Moon Bay resident) cautioned against amending Measure D, arguing that it could trigger a flood of market-rate housing and consume resources needed for affordable housing, and that unused allocations do not credit future RHNA cycles.
• David Kwarn (Planning Commissioner, speaking as a citizen) objected to Item 3F being before the council while the Planning Commission had not completed its review, calling it a bypass of the commission's role.
• Carlisle Ann Young (via Zoom) asked about sewer connections for the Stone Pine Cove project and later raised concerns about emergency evacuation planning and potential reasons for declining tourism.
• Scott Bollinger (Midcoast Community Council member) updated the council on regional projects including Highway 1 widening, fire station remodel, parking removal at Surfer’s Beach, and incineration of downed trees in Maraud East.

Discussion Items

• Item 3.F: Potential Ballot Measures for November 5, 2024 Election Sales Tax Increase: Jessica (staff) and Lucia Del Pupo (FM3 Research) presented polling results showing 63% initial support for a half-cent sales tax increase. Key findings: 40% of sales tax is paid by visitors; top priorities for voters are financial stability, 911 response times, safe routes to school, crime prevention, and road repairs. The measure appears viable with presidential-year turnout. Measure D Amendment: Staff sought direction on amending Measure D to exempt ADUs, deed-restricted affordable units, and adjust downtown boundaries. The Planning Commission had requested more data. Council discussion revealed concerns about unintended consequences—such as increased market-rate housing and depletion of affordable housing resources. Councilmembers expressed support for sending the issue back to the Planning Commission for thorough analysis and additional public outreach.
• Item 3.A: Business Improvement District (BID) Per Night Assessment Increase A public meeting was held to discuss increasing the assessment from $1.00 to $2.00 per night. No public comments were made. The item will return for a protest hearing on July 16, 2024.
• Item 3.B: Stone Pine Cove Affordable Farmworker Housing Project Staff requested authorization to allocate $1.25 million in state grant funds (via City Affordable Housing Funds) to the project at 880 Stone Pine Road, including an initial $487,000 payment to Coastside County Water District for priority water connections. The council approved the resolution unanimously.
• Item 3.C: Annual Renewal of Community Development Agreements Two contracts were approved: (1) 4LEAF, Inc. for building plan check and inspection services, not to exceed $365,250; (2) Metropolitan Planning Group (M-Group) for contract planning services, not to exceed $141,250. Both are cost-effective and not-to-exceed amounts, covering permit-driven demand.
• Item 3.D: City Council Priorities Workplan for FY 2024-26 The council received and accepted the workplan, which retains five priorities: affordable housing, public health/safety/emergency prep, climate resilience/sustainability, economic recovery/development, and transportation/circulation/mobility. Staff will incorporate suggested additions such as the Magnolia Park community garden, Hyatt Place Hotel project, wayfinding signage (arch), and crosswalk striping safety improvements before finalizing.
• Item 3.E: Fiscal Year 2024-25 Recommended Operating and Capital Budget The council reviewed and adopted the budget, which includes $21.1 million in revenues, $23.3 million in operating expenditures, and $1.7 million in capital expenditures, resulting in a $4 million structural deficit. The deficit is addressed by using $1.6 million from unassigned fund balance and $2.4 million from the economic uncertainty fund. Reserves will drop to $8.6 million (37% of operating expenditures, below the 50% policy target). No layoffs or service cuts are included; staff vacancies will be held open. The budget assumes a flat TOT revenue of $8.6 million and a 3% increase in property tax. The council also approved the GANN Appropriation Limit and the City’s Investment Policy with no changes.

Key Outcomes

• Consent Calendar: Approved unanimously (Items 1.A–1.F, 1.I); Items 1.G and 1.H approved unanimously separately.
• Sales Tax Ballot Measure: Council directed staff to prepare a resolution for the July 16, 2024 meeting to place a half-cent sales tax increase (general purpose, 50+1 vote) on the November 5, 2024 ballot. A town hall will be held on July 10, 2024.
• Measure D Amendment: Council decided not to rush to ballot; staff will continue working with the Planning Commission to gather additional data, including impacts on ADUs, market-rate housing, map boundaries, and allocation permitting. A special meeting before August 8, 2024 may be scheduled if needed.
• BID Assessment Increase: Public meeting held; final protest hearing scheduled for July 16, 2024.
• Stone Pine Cove: Resolution adopted unanimously allocating $1.25 million for project expenditures and authorizing $487,000 for water district connection fees.
• Community Development Agreements: Resolutions adopted unanimously for 4LEAF, Inc. and Metropolitan Planning Group.
• Council Priorities Workplan: Accepted. Staff will revise and publish the plan with added items including Hyatt Place, community garden, wayfinding signage, and crosswalk safety.
• FY 2024-25 Budget: Resolutions adopted unanimously for the GANN limit, Investment Policy, and the Annual Operating and Capital Budget.
• Closed Session: Council met on June 11, 2024, to discuss existing litigation (Casamira vs. California Coastal Commission) and threatened litigation regarding 555 Kelly project; nothing to report.
• Adjournment: The meeting adjourned with a moment of silence in honor of the mayor’s son, Joaquin.