Half Moon Bay City Council Regular Meeting – June 5, 2025

The Half Moon Bay City Council held a regular hybrid meeting on June 5, 2025. The agenda included consent calendar items, a contested coastal development permit, a business improvement district levy, a workforce vacancy report, the master fee schedule, and the FY 2025-26 recommended budget. The council voted to approve the contested residence after a public hearing and gave direction on the budget to bring back for adoption on June 17, 2025.

Consent Calendar

• 1A. Waive reading of resolutions and ordinances – Approved unanimously.
• 1B. Warrants for April 2025 – Approved unanimously.
• 1C. Resolution opposing offshore drilling in the Pacific Ocean – Approved unanimously.

The consent calendar was adopted by a 5‑0 roll call vote.

Public Comments & Testimony

• Marjorie Ruiz (PG&E representative) – Introduced herself as the local government affairs contact, offering to assist city officials and staff.
• Joaquin Jimenez – Thanked the community for support after his son’s passing; announced the birth of a grandson and his daughter’s graduation.
• Alicia Akel (Chase Bank) – Warned about increased scams targeting elderly residents; urged the public to verify requests before taking action.
• Rocio Avila (Affordable Housing Committee) – Advocated for dignified affordable housing, stating families are being displaced and essential workers cannot afford to live in Half Moon Bay. Invited the public to committee meetings.
• Amber Stowe – Expressed disappointment over the council’s previous decision to reduce nonprofit grants by $73,000, arguing cuts to senior exercise and mental health services will lead to higher emergency costs. Urged restoration of the funding.
• Public Hearing on 2A (Coastal Development Permit) – Several neighbors (Harvey Rubbock, Joe Farrell, Susan Quaglietti, Brad Steinweight, Alec Hogg, John Rossi, Chris Devsich) spoke in opposition, citing increased flooding from the Pullman Ditch. They argued the city’s hydrological analysis was outdated and requested an independent review. The applicant’s representative (Mark Masara) stated the project complies with all policies and will not worsen flooding, and noted the voluntary 30‑foot easement for a future bypass.
• Public Hearing on 2C (AB 2561) – Karen Decker (on behalf of represented management and Local 39) noted the vacancy rate had risen from 7% to 18%, causing burnout. She called for investing in workforce retention and career development.
• Public Hearing on 2D (Master Fee Schedule) – Kaylee Collins (online) questioned whether all fees are necessary and urged the city to consider the lower income levels in Half Moon Bay rather than simply matching fees of wealthier cities.
• Public Comment on Budget (3A) – Kristin Keat requested $40,000 be allocated for downtown revitalization and warned that TOT revenue projections may be optimistic due to declining international travel. She also raised concerns about the city’s TOT contractor and a lack of traffic enforcement on Main Street.

Discussion Items

2A. Coastal Development Permit for 2800 Champs Elysee Blvd (PDP‑17‑055) – Senior Planner Scott Phillips presented the project: a 4,710‑sq‑ft two‑story single‑family home on a 31,709‑sq‑ft lot within the Steloski Gonzales Specific Plan. The Planning Commission had denied the project 3‑0 in September 2024, and the city council upheld that denial on a split vote. The landowner sued, and a settlement required tonight’s public hearing. A new hydrological analysis (Shaf and Wheeler, April 2025) concluded the project would not cause or contribute to flooding in the Pullman Ditch. Councilmember Nagengast and Penrose stated they relied on that analysis and supported approval. Councilmember Johnson expressed empathy for neighbors’ flooding but believed the house itself was not the cause. Mayor Brownstone recused himself. The council voted 3‑1 (Johnson no) to approve the Coastal Development Permit and Architectural Review, finding it categorically exempt from CEQA.

2B. Business Improvement District Levy (FY 2025‑26) – Staff presented the annual resolution to assess $2 per room per night for lodging promotion. No public comments or protests were received. The council opened and closed the hearing and adopted the resolution unanimously (5‑0).

2C. Compliance with AB 2561 (Workforce Vacancies, Recruitment, Retention) – Administrative Services Director Lisa Rossi and HR Analyst Ernest Acevedo reported an overall vacancy rate of 18% (from 45 budgeted FTEs). Most vacancies were in executive positions intentionally held open for budget reasons. The city’s 2024 vacancy rate averaged 6‑7%. Recruitment challenges include competition with private sector and housing costs. Retention efforts include competitive benefits, telecommuting, and an employee engagement committee. Public comment from Karen Decker highlighted staff burnout. The council thanked staff; no action was required.

2D. Master Fee Schedule (FY 2025‑26) – Finance Director Ken presented the annual update, based on a comprehensive fee study that would raise cost recovery from 51% to 89%. New fees for rent registry and special event permits were included. The Recreation Commission recommended phasing in increases for small/mid‑size permits. Councilmember Ruddock expressed concern about high fees deterring small businesses and ADU construction, and requested a comparison with other cities. The council adopted the Master Fee Schedule as presented (5‑0).

3A. Fiscal Year 2025‑26 Recommended Budget – Ken presented the proposed general fund budget: revenues of $23 million, operating expenditures of $24 million, plus $1 million in capital, yielding a $1.5 million deficit. One‑time revenues (sheriff savings, fee study) mask a $3 million structural deficit. Two options for the risk management fund were presented: Option A (suspend contribution, leave funds in general fund reserves) and Option B (continue funding). The city also faces the expiration of the golf fee agreement in September 2026, which provides $600,000 annually. Councilmembers discussed holding executive positions vacant pending a reorganization, renegotiating the golf fee, and exploring long‑term revenue measures (e.g., a vacant house tax). Public comment from Kristin Keat urged caution on TOT projections and requested downtown funding. The council directed staff to return with a final budget for adoption on June 17, 2025, and expressed consensus for Option A on the risk management fund.

Key Outcomes

• Approved Coastal Development Permit for 2800 Champs Elysee Blvd on a 3‑1 vote (Johnson no; Brownstone recused). The decision may be appealed to the California Coastal Commission.
• Adopted the FY 2025‑26 Business Improvement District levy unanimously.
• Adopted the FY 2025‑26 Master Fee Schedule unanimously.
• Received the FY 2025‑26 Recommended Budget and gave staff direction to return with a final adoption resolution on June 17, 2025. Direction included: hold higher‑level vacant positions pending a reorganization plan; pursue renegotiation of the golf fee agreement; explore a November 2026 ballot measure for a vacant house tax; and proceed with Option A for the risk management fund (suspend contribution to preserve flexible reserves).