Half Moon Bay City Council Regular Meeting - May 20, 2025

The Half Moon Bay City Council met on Tuesday, May 20, 2025, at 7:00 PM in a hybrid meeting at the Adcock Community Center. Four councilmembers were present (Mayor Brownstone, Vice Mayor Ruddock, Councilmembers Nagengast and Penrose; Councilmember Jonsson absent). The council approved consent calendar items, received presentations on mental health and public works, heard reports on the Hotel Business Improvement District and quarterly finances, debated funding for the Community Services Financial Assistance (CSFA) program, and reviewed a comprehensive user fee study. Public comments addressed rent stabilization, nonprofit funding, and council conduct.

Proclamations and Presentations

• Mental Health Awareness Month: Mayor Brownstone read a proclamation declaring May 2025 as Mental Health Awareness Month. Verna Barrientos of NAMI San Mateo County accepted and highlighted free mental health resources and the 988 crisis line.
• National Public Works Week: A proclamation was presented to Public Works Director Maz Bosergenia, who credited his 15-person staff and other city departments.
• Student Awards: Leadership awards were given to Autumn Strucker, Owen Gregson, and Julia Kakunda. Sustainability awards from Republic Services were presented to Sophia Riley and Julian Coven for essays on transportation mode shift.
• City Manager Update: Community Services Analyst Julisa Acosta invited the community to a suicide prevention workshop on May 30, 2025, from 6–8:30 PM, in partnership with San Mateo County Behavioral Health.

Consent Calendar

• Approved waiver of reading of resolutions and ordinances.
• Approved final acceptance of the Poplar Street Traffic Calming and Safety Project – Phase 1 (CIP Project No. 0593), authorizing filing of Notice of Completion, release of performance and labor and materials bonds, and retention funds after 30 days.

Public Comments & Testimony

• Joanne Korkowski provided copies of articles on eviction trends and housing policy, advocating for balanced information on rent stabilization.
• Nancy Fontana urged the council to form a study committee for the rent stabilization program and to review council conduct policies after a prior incident.
• Joaquin Jimenez supported extending the rent registration program, noting 400 applicants for 46–47 new units and the need for compassion.
• CSFA Comments (6 speakers): Representatives from multiple nonprofits urged full funding, citing increased demand. Caitlin Freeberg (Coastside Hope) reported serving 3,268 Half Moon Bay residents (163% of goal), distributing 340,000 pounds of food monthly (892% of goal), and a 48% increase in case management clients year-over-year. Other speakers included Spanda Chakra Barty (advocating for dental care), Sandy Winters (Senior Coastsiders), Jill Jacobson (Boys & Girls Club), Sandra Sension (Ayudando Latinos a Soñar), and Michael Ocana (El Centro de Libertad), all emphasizing the multiplier effect of local funding.

Discussion Items

3.A: Hotel Business Improvement District (BID) Annual Report

• Irma Acosta and Krista Lynn (Coastside Chamber) presented. BID fee increased to $2/room/night in 2024. TOT revenue reached $8.4 million in 2024, with an estimated total economic impact of $7.9 billion. The website saw 501,000 users and 870,000 page views. Occupancy rose from 55% to 57%. Council approved the annual report and resolution of intention to levy assessments for FY 2025-26, directing the city clerk to schedule a public hearing on June 3, 2025 (unanimous).

3.B: Financial Report for Quarter Ended March 31, 2025

• Kenneth presented the third-quarter report. TOT collections were at 69% of budget (benchmark 66%), property taxes slightly ahead, and sales tax improved. Projected year-end reserves of $8.6 million (37% funded) and $900,000 unassigned. A structural deficit remains for the next fiscal year. Council accepted the financial report (unanimous).

3.C: Community Services Financial Assistance Program

• Julisa Acosta provided an update on the CSFA program, which has been running for 7–8 years with a $300,000 annual fund. The subcommittee recommended three funding options for FY 2025-26 (A: $300,000; B: $250,000; C: $200,000 now, with possible additional $100,000 at mid-year). After public comment and debate, Vice Mayor Ruddock proposed a modified version of Option C: increase Coastside Hope to $50,000 and Abundant Grace to $30,000, totaling $227,000. The motion carried 3-1 (Councilmember Penrose dissenting).

3.D: Comprehensive User Fee Study Workshop

• Nicole Kissam (NBS) presented the fee study. Current fee revenues are $779,000 annually, while full cost is $1.5 million (51% recovery). Proposed adjustments would achieve 89% recovery, generating an additional $575,000 per year. Some fees (e.g., water heater permits) would remain below full cost to encourage compliance. Council accepted the report and directed staff to bring the draft fee schedule for public hearing on June 3, 2025, with adoption on June 17, 2025 (unanimous).

Closed Session Report

• City Attorney reported that the council met in closed session and approved a settlement in Hun v. City of Half Moon Bay (a trip-and-fall case) for $2,875,000, covered by the city’s insurance carrier. Vote was 4-0 (Councilmember Jonsson absent).

Key Outcomes

• Consent Calendar: Approved.
• Hotel BID: Approved annual report and resolution for FY 2025-26 levy; public hearing set for June 3, 2025.
• Financial Report: Accepted.
• CSFA Funding: Approved modified Option C at $227,000 total, with Coastside Hope receiving $50,000 and Abundant Grace $30,000; remaining funds distributed pro-rata among other agencies. Vote 3-1.
• User Fee Study: Accepted; fee schedule to be considered for adoption at June 3 and June 17 meetings.
• Litigation Settlement: Approved in closed session 4-0.
• Future Agenda Items: Council agreed to revisit a potential code of conduct review and further discussion on rent stabilization program in coming months.