Half Moon Bay City Council Regular Meeting - April 1, 2025
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Half Moon Bay City Council Regular Meeting - April 1, 2025
The Half Moon Bay City Council met on Tuesday, April 1, 2025, at 7:00 PM in a hybrid format at the Adcock Community Center. Key actions included approving an amendment to the Exclusive Negotiations Agreement (ENA) for the 555 Kelly Avenue senior affordable housing development, rejecting all bids for the Frenchman's Creek Park Improvements Project and directing staff to pursue a reduced scope using grant funding, and receiving updates on the Residential Rental Registration Program and Telecommute/Alternative Work Schedule policies.
Proclamations and Presentations: Coastside Venture Studio Update
- Eric Vettel, founder of American Energy Society, provided an update on the Coastside Venture Studio, an incubator-to-accelerator program at the Opportunity Center. He reported that the first year has gone according to plan, highlighting a successful demo day for Flox Robotics (AI-enabled drone technology for wildlife management). The Venture Studio is preparing for cohort two and recruiting startups in ag-tech, water tech, built environment, and local startup ecosystem. Councilmembers expressed enthusiasm and noted the program is already having economic impact.
City Manager Updates
- Republic Services Update: Catherine Tacolby and Monica DeVinci presented. They announced the annual Earth Day/Recycling Day event on April 26 (9am-12pm, Smithfield) with shredding, e-waste, and compost giveaway. They reported on SB 1383 organics compliance: organics collection from businesses increased from 400 tons in 2022 to 510 tons in 2024. Enforcement is now starting with education. A 2.8% rate adjustment went into effect April 1. Councilmembers asked about household compositing bins and enforcement process.
- Non-Profit Day: Irma Acosta announced Non-Profit Day on Saturday, April 5, 11am-2pm at the Adcock Community Center, with approximately 30 nonprofits participating. Councilmember Ruddock noted it is a good lead-in to Coastside Giving Day (May 1).
Public Forum
- Joaquin Jimenez presented signatures (over 500 collected in 24 hours) from community members supporting the housing element as approved, including development at all identified locations. He urged the council to demonstrate care for the housing-needy community.
- Several speakers commented on the 555 Kelly Avenue item (see discussion).
- No other items were raised in public forum.
Consent Calendar
- 1.A: Waive reading of resolutions and ordinances. Approved unanimously.
Discussion Items
3.A: 555 Kelly Avenue Affordable Housing – Amendment to Exclusive Negotiations Agreement (ENA) with Mercy Housing
- Staff Presentation: Housing Programs Manager Mike Noche explained that the amendment adds a proposed ground lease term of 65 years (with option to extend to 99) and a proposed payment of $1 per year. These terms are necessary for Mercy Housing to apply for state and county funding, particularly the Joe Cerna Junior Farm Worker Housing Grant (deadline April 15). The ENA term remains one year and does not commit the city to the final lease terms.
- Public Comment: Many speakers supported the amendment, including:
- Shauna Pickett Gordon: Supported the amendment so 555 Kelly can meet requirements for long-term affordable ground lease.
- Gloria Stofan (Coastside Faith in Action): Urged approval for senior farm worker dignity.
- Mike Ferrero: Expressed surprise about the rushed timeline and raised concerns about liability and referendability.
- Ellen Hage (Coastside Faith in Action): Supported the amendment, citing farm workers' need for decent housing.
- Joanne Rukoski (Coastside Faith in Action): Supported the amendment as a step toward dignified housing.
- Noreen Cooper Heavlin (Coastside Faith in Action): Urged the council to be reliable partners to ensure affordable housing gets built.
- Sandy Vella: Opposed the amendment, asking to retain public referendum rights and to negotiate all terms upfront rather than piecemeal.
- Rocio Ávila (Just Housing Committee): Expressed the importance of 555 Kelly for senior farm workers and urged approval.
- Jennifer Moore: Asked for clarity on tenant selection to ensure units go to local farm workers; also expressed concern about city resources and asked to retain referendum rights.
- Vaughn Harrison (Coastside Faith in Action): Supported the amendment.
- Bill Hevlin (Coastside Faith in Action): Called the amendment basic stewardship for getting affordable housing funded.
- Council Deliberation: Councilmembers questioned the timing (grant deadline April 15, just learned that night) and expressed frustration about being blindsided. The City Attorney confirmed the amendment does not lock the city into final terms or increase liability, and does not affect referendability. Mercy Housing explained the 65-year lease term was required for the grant scoring. Councilmember Nagengast voiced strong objections to the process but supported the project. Vice Mayor Ruddock noted the amendment is administrative and does not lock the city in. Councilmember Penrose emphasized the need for good faith and transparency going forward.
- Vote: Motion to adopt the resolution passed 4-1 (Councilmember Nagengast dissenting).
3.C: Award of Construction Contract for Frenchman’s Creek Park Improvements Project (CIP 1013)
- Staff Presentation: Public Works staff Jonathan Mu and Maz Bazaruni reported that the lowest bid from Half Moon Bay Grading and Paving was $351,076.49 (with $52,661.47 contingency, total $403,737.96), which was 23.1% above the engineer’s estimate. The total budget requires a $115,843 transfer. Three alternatives were presented: (1) use only the Prop 68 grant of $185,000 for a reduced scope, (2) combine grant with prior allocations, or (3) postpone the project.
- Council Deliberation: Councilmembers preferred Alternative 1 to stay within the grant funding and avoid additional city costs. They expressed desire to keep the park improvements but scale back. Councilmember Johnson noted the park is well-liked by neighbors and that ADA accessibility should be prioritized. Councilmember Nagengast suggested future phasing could be done if needed. City Manager confirmed that rejections of all bids would allow rebidding a reduced scope.
- Vote: Motion to reject all bids and pursue Alternative 1 (use Prop 68 grant funds for reduced scope) passed unanimously (5-0).
3.D: Telecommute and Alternative Work Schedule Policy Updates
- Staff Presentation: Administrative Services Director Lisa Rossi provided an overview of current policies. The city has multiple schedule options: 4/10, 9/80, flex hours, and remote work (primarily for exempt employees). City Hall is closed Fridays. Comparison with 16 other San Mateo County cities showed most are open 8am-5pm with remote work options.
- Council Deliberation: Councilmembers discussed customer service concerns, the perception of a “ghost town” on Fridays, and the challenge of managing multiple schedules. Some favored more structure and predictability; others noted the flexibility aids employee retention and well-being. Mayor Brownstone suggested balancing customer service with staff needs. Councilmember Ruddock mentioned receiving complaints about Friday closures. No formal action was taken; the item was referred to the HR subcommittee (Mayor Brownstone and Councilmember Penrose) for further discussion.
Key Outcomes
- Approved Consent Calendar item 1.A (unanimous).
- Approved Amendment to ENA for 555 Kelly Avenue (4-1, Nagengast dissenting). City Manager authorized to execute the amendment with proposed 65-year lease term and $1/year payment.
- Rejected all bids for Frenchman’s Creek Park Improvements; directed staff to pursue Alternative 1: use $185,000 in Prop 68 grant funds for a reduced scope (unanimous).
- Received update on Telecommute and Alternative Work Schedule Policies; no action taken. Referred to HR subcommittee.
- Received updates from Planning Commission (Measure D allocations, Redondo Beach gate closure) and Recreation Commission (new youth commissioner, farm worker memorial concepts).
Meeting Transcript
Thank you. Everything's working. Okay. Thank you, everybody. Some like to make a motion. I move that we approve the agenda. Second. All those in favor say aye. Aye. Aye. All those against. Great. Approved. We will start with um proclamations and presentations. And we will have a presentation from Co-Side Venture Studio Update. Great, thank you very much. And good evening, Mayor Brownstone, Council and Community. Karen Decker, Economic and Community Vitality Manager. It's my pleasure to introduce your next presenter, Eric Vettel. He's the founder and president of American Energy Society. American Energy Society is operating Coastside Venture Studio, which is an incubator to accelerator program located at the Opportunity Center of the Coastide. The idea to launch a business incubator came out of the Coastide Recovery Initiative. There were four working teams focused on different areas, and the team that really prioritized and talked about innovation had really great conversations. And incubators may not be unique, and you've heard me say before, many of them fail. But what makes Coast Side Venture Studio different is that it really tries to harness our local industries and our assets. So the fact that we have an airport, the fact that we have agriculture and fisheries and a beautiful Pacific Ocean and a harbor, these things make the coast unique. So a goal is for the last year has been trying to attract startups that have alignment, have value alignment. And really we it's very important when we're vetting these nonprofits that are invited to join Kosai Venture Studio that they value people and planet and profit, which we refer to as kind of this this triple P bottom line. Welcome, Eric. Thank you. Thank you, Mayor. I'd like to thank the city council for the chance to provide an update on the Coast Side Venture Studio. The thesis of my update is pretty simple. This venture studio is a rare example of something going according to plan in the first year. I will begin with a quick story. On a Wednesday, April 19th, we hosted a demo day for one of our startups, Flox Robotics, an AI-enabled drone technology that helps humans and wildlife coexist. Basically, it works like this. When their drone or a stationary device detects a threat, a wildlife threat, it will find in its library the right sound to herd it, herd it away. The old way of doing this was typically with guns, poison, or traps. The Flox method is more humane. We knew their what's that. Okay. We knew that their the flux technology worked because it's been we've been working with them for about one year, but I always worry. That's my nature. This demonstration had four customers in attendance along with local influencers like the vice mayor, the city manager, and the economic and community vitality manager, along with 30 other people. So I pulled into the Johnston House parking lot 30 minutes early, and I hopped out of my car. And right above my head, I heard a blood curdling screech that sounded like a hawk, and I was its breakfast. After the successful demonstration, the audience gathered at the Johnston House for QA. One of the customers, a facilities manager for SFO, who was clearly interested in the Flox product, said, How do we know if we buy it, you won't disappear, and the customer product service is gone. Without missing a beat, the Flox CEO, Sarah Noskova said, we are already here.
openpublica.com