Half Moon Bay council advances 555 Kelly ENA, renews Little League agreement and approves sheriff contract; multiple consent items passed

Half Moon Bay’s City Council made a string of policy and administrative approvals during a nearly five-hour meeting on Jan. 21, advancing plans for affordable housing, confirming local partnerships and adopting the annual amendment to its law-enforcement contract.

Key actions approved by council included: - A 12-month exclusive negotiations agreement (ENA) with Mercy Housing to complete an affordable housing and property-disposition agreement for a proposed senior/farmworker housing project at 555 Kelly Avenue; the ENA is intended to allow Mercy to demonstrate site control and preserve state funding awards while final lease terms are negotiated. - A two-year facility-use agreement with Half Moon Bay Little League for Smithfield Park, after council asked staff to gather more cost and usage details and to ensure fields are accessible when not in-season. - Transfer of Rule 20A PG&E undergrounding credits (about $199,000) to San Mateo County to support the Middlefield Road improvement project. - Approval of Amendment 17 to the County of San Mateo Sheriff’s Office law-enforcement contract, an annual cost-recovery amendment representing a 5.4% increase in estimated FY2024-25 costs (staff reported an estimated contract amount and said the final accounting is reconciled annually).

Council also approved the final parcel map for 880 Stone Pine Road, several consent-calendar items and multiple appointments to city advisory bodies. The consent calendar itself passed with several items pulled for discussion and later approval.

Why the ENA matters: City staff and Mercy Housing representatives told council the ENA is a short-term negotiating instrument that does not commit the city to a final ground lease but allows Mercy to show “site control” to state funders while the parties finalize the Affordable Housing and Property Disposition Agreement (AHPDA). Mercy has received preliminary state funding commitments and must meet site-control milestones to keep those awards eligible. Housing programs manager Mike Noche said Mercy was awarded “just over $2,700,000” in a state grant, and staff described layered financing and multiple agency approvals as reasons the developer requested a 12-month negotiating period.

Little League and public access: Council approved a two-year renewal for the Half Moon Bay Little League after extended discussion about field use and access. Justin Kern, president of Half Moon Bay Little League, said league fees remain deliberately low and the organization spends tens of thousands annually on field improvements; Kern told council the league “averaged about $41,000” in field work over recent years. Council members directed staff to provide more detailed cost accounting of city-maintained services at Smithfield Park and to work with Little League to clarify when fields are locked for league play and when they are available to other users.

Sheriff contract and public-safety oversight: Staff presented Amendment 17 to the existing law-enforcement contract with the County of San Mateo, describing it as the routine annual cost-recovery amendment required under the contract and Government Code provisions. The amendment covers estimated costs for FY2024-25 and was approved; council members asked staff to compile comparative cost data and to evaluate alternatives for future contracts (including the cost of a local police department) as they plan longer-term public-safety strategy.

Other votes and administrative items: The council approved the final parcel map for 880 Stone Pine Road (Stone Pine Cove), continued a public hearing to Feb. 4 for sale of a portion of the same property, and authorized the city manager to transfer PG&E Rule 20A credits to the county to support the Middlefield Road project. Appointments to the Planning Commission and Parks & Recreation Commission were made from among applicants the council members recommended.

Ending: Council members asked staff to return with additional financial breakdowns for parks maintenance and for the law-enforcement contract; staff also will coordinate with Mercy Housing and other partners to finalize the AHPDA if terms can be negotiated within the ENA timeline. The council scheduled several follow-up items, including a public update on the Smithfield project environmental review and a review of city staffing and weekend coverage.

Votes at a glance - ENA with Mercy Housing (555 Kelly Avenue): Approved (12-month ENA). Motion approved by roll call (5-0). Purpose: allow Mercy to secure site-control milestones and maintain eligibility for state funding while negotiating the AHPDA and ground-lease terms. - Facility-use agreement: Half Moon Bay Little League (Smithfield Park): Authorized for two years; city manager directed to execute agreement. Motion approved by roll call (5-0). Council asked for more cost accounting and clarified that fields should be accessible to others when out-of-season. - Amendment 17, law-enforcement services (County of San Mateo Sheriff): Approved (5.4% estimated increase for FY2024-25). Motion approved by roll call (5-0). Council asked staff to prepare comparative cost analyses and consider future options. - Transfer of PG&E Rule 20A credits to San Mateo County for Middlefield Road project: Approved by roll call (5-0). Credits: approximately $199,000. - Final parcel map for 880 Stone Pine Road (Stone Pine Cove): Approved by roll call (5-0). - Consent calendar items (including Smithfield Park improvements, emergency-services JPA acceptance, professional-services amendments): Approved; individual pulled items discussed and approved separately.

What’s next: Staff will work with Mercy Housing on lease/ground-lease negotiations under the ENA timeline and will return to council with any finalized AHPDA and ground-lease for formal approval. City staff also will provide more detailed cost accounting for park maintenance and for police-contract alternatives in future budget and committee reports.