Half Moon Bay City Council Special Meeting - August 8, 2024

Note: The agenda and transcript list the meeting date as August 7, 2024, but the provided instruction states the meeting took place on August 8, 2024. This summary uses the instructed date.

The City Council met in a special hybrid meeting at 6:00 PM to discuss three main items: a consent calendar amendment for environmental review of the Hyatt Place hotel, an update on a referendum petition for the 555 Kelly senior farmworker affordable housing project, and consideration of submitting the Second HCD Draft Housing Element to state authorities.

Consent Calendar

• Item 1.A – Amendment 8 to Circlepoint EIR Contract: Adopted Resolution C-2024-____ authorizing the City Manager to execute Amendment 8 with Circlepoint for preparation of the Final Environmental Impact Report for the proposed Hyatt Place Hotel. The amendment adds $20,450 (bringing total to $442,524) to cover consultant attendance at up to two hearings. The applicant will fund these costs. Approved unanimously (5-0).

Public Comments & Testimony

• Item 2.A – Referendum Petition on 555 Kelly Project: Multiple speakers expressed positions. Supporters of the project (e.g., from ALAS, Mercy Housing, Coastside Faith in Action) urged rejection of the petition, arguing the process was thorough and the petition is illegal. Opponents (including a member of the "Let HMB Voters Decide Committee") argued for voter input, citing safety, traffic, cost ($1.1 million per unit), and lack of transparency. Approximately 1,200 signatures were collected. City Attorney presented that the Council’s action was administrative, not legislative, and thus not subject to referendum.
• Item 2.B – Housing Element: Extensive public comment focused on Opportunity Site #3 (Our Lady of the Pillar Church property). Over 30 speakers opposed inclusion, citing plans for a Catholic school, religious liberty concerns, and the belief that inclusion implies eventual land seizure. Speakers from the church (pastor, parishioners, students) requested removal. A few speakers supported including the site as an opportunity, noting no land is being taken. One resident of 604 Poplar Street asked to remove that property from the sites list. A few individuals advocated for approving the Housing Element to avoid state penalties and the builder’s remedy.

Discussion Items

• Item 2.A – Referendum Update: City Attorney Catherine Engberg and City Clerk Jessica Blair explained referendum law: only legislative actions (ordinances) are subject to referendum, not administrative decisions like the Council’s denial of appeals for a coastal development permit. Staff rejected the petition as invalid. Councilmember Rarback moved to direct staff to schedule a special meeting to consider placing the matter on the November 5 ballot; no second was offered. Councilmembers Penrose, Brownstone, and Jimenez affirmed the legal opinion, noting the petition is illegal and that opponents have other recourse (lawsuits, recall, elections). Council took no action beyond receiving the update.
• Item 2.B – Housing Element: Housing Programs Manager Mike Noce presented the Second HCD Draft (July 30, 2024), detailing the 480-unit RHNA target, pipeline projects (e.g., 555 Kelly, Stone Pine Cove, Hilltop Mobile Home Park), and revisions in response to HCD’s August 30, 2023 letter (34 items). Key topics included Measure D constraints on ADUs, SB 35 streamlining, and Opportunity Site #3. The Planning Commission had recommended retaining Site #3. Councilmember Ruddock proposed removing the church site and the Poplar Street property (604 Poplar) due to owner objections and community tension, and suggested softening language on funding commitments (avoid using general fund as guaranteed funding source). Councilmember Penrose and Vice Mayor Rarback emphasized the urgency of certification and the risks of delays (loss of grants, potential builder’s remedy). Councilmember Brownstone supported removing the site to avoid conflict, noting it does not prevent future church-led housing. Mayor Jimenez opposed removal, arguing the site is valuable and inclusion does not compel development. Ultimately, discussion centered on the need to meet HCD's 15–30% buffer and no-net-loss requirements. Staff noted removal would require additional analysis and possibly replacement sites, further delaying certification.

Key Outcomes

• Consent Calendar approved unanimously (5-0).
• Item 2.A – No action taken; Council received the update and did not pursue the referendum petition.
• Item 2.B – Motion by Mayor Jimenez, seconded by Councilmember Penrose, to acknowledge Planning Commission recommendations and direct staff to submit the Second HCD Draft (July 30, 2024) to HCD without removing any sites. The motion carried 5-0 (Councilmember Brownstone voting yes despite earlier comments). Councilmember Ruddock’s suggested revisions regarding funding language were not formally adopted but noted for future consideration. Staff will release the Mitigated Negative Declaration (MND) for 30-day public review after submission. HCD has 60 days to respond; certification is anticipated by end of 2024 or early 2025.