The city of Half Moon Bay has received $5 million from the Association of Bay Area Governments insurance pool.

Although the city says at least six times in the three-paragraph release that the money will go toward its litigation expenses, this is $5 million that the city did not have before.

Since the city has already budgeted and spent the money for past litigation, this $5 million could be applied to the $18 million settlement with developer Charles "Chop" Keenan, significantly reducing the amount they would have to borrow.

Here’s the release:

Half Moon Bay Mayor and ABAG Announce Settlement of Beachwood Litigation Insurance Claim

Payment will Reimburse City for 10 Years of Litigation Expenses

HALF MOON BAY, Calif.—(BUSINESS WIRE)—Half Moon Bay Mayor Bonnie McClung and the risk sharing pool to which the City belongs, the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN), announced today that they had reached an agreement under which ABAG PLAN would pay the City $5 million to reimburse it for expenses incurred during 10 years of litigation over the Beachwood property. The City expects that the $5 million will fund most of the litigation costs that it has already incurred or anticipated.

"We appreciate the decision by ABAG PLAN to pay the City the entire $5 million under our coverage, which covers the incurred and anticipated litigation costs related to Beachwood. This money will be used to reimburse the City for the almost $5 million in total legal and administrative costs of the litigation over a period of more than 10 years, but will not reach the $18 million that will be owed should AB 1991 fail," said Mayor McClung. The $5 million is the entire coverage available from ABAG PLAN.

AB 1991 passed the California Assembly 46-18 on May 28th and will be heard by the California Senate Local Government Committee on June 18th.

Midcoast Community Council member Geoff Davis has resigned, sending in his letter of resignation on Wednesday, June 11.

The Council will have to decide how to fill the empty seat, whose term ends in 2009.

Correction: An earlier version of this story said there was also a meeting on Monday, based on incorrect information from the county.

The county’s Local Area Formation Committee (LAFCo) will meet Wednesday, June 18, to review determinations from the final Municipal Services Review at 2:30 in Board of Supervisors Chambers in Redwood City.

Lanny Davis is not a stupid man, but he plays one on TV. Convincingly.

His job is to stick to whatever message his clients have paid him to disseminate, regardless of how boneheaded that message is. Such as the message that Hillary was not dead yet after the Indiana and North Carolina primaries. Or the smear that it was antisemitic to say Joe “Vote McCain” Lieberman shouldn’t be Connecticut’s Democratic senate candidate. Or that AB1991 won’t set a precedent.

Half Moon Bay is paying Lanny Davis (probably thousands of dollars an hour) to lead its disinformation campaign around AB1991. Lanny Davis is the man behind the city’s Truth Squid.

Wednesday, Half Moon Bay’s Truth Squid shot a cloud of inky obfuscation in Coastsider’s direction over AB212 – a bill designed to overturn Los Angeles zoning regulations in order to turn a big swath of LA’s precious open space into yet another subdivision. So, let’s examine the Squid’s assertions one at a time and understand the truth behind the ink.

• Yes, AB1991 was introduced after AB212. But Half Moon Bay’s ticking stinkbomb has left the Assembly, and AB212 was waiting in the wings. AB1991 would have been a precedent for passing a bill just like AB212.

• Yes, AB1991 is supported by the Half Moon Bay City Council, while AB212 is opposed by the LA City Council. However, AB1991 is designed to overturn the authority of the Coastal Commission, which adamantly opposes it – just as AB212 was designed to overturn the authority of the LA City Council, which adamantly opposed it.

• Yes, AB1991 is narrowly tailored to fit a special set of circumstances. But, so was AB212. That’s the nature of special-interest legislation. It is designed to benefit a single, narrow interest by overturning the law at the expense of the public good.

• Yes, AB1991 is not a “precedent” in the way that attorneys use that word. It’s a precedent in the way that 99% of the public uses that word: a justification for future behavior. As I pointed out in another context, if you have sex for money, you don’t create a legal obligation to do so in the future. But you do increase the likelihood that you’ll be offered money for sex in the future. That is called a “pre • ce • dent”. You can look it up. Go ahead. I’ll wait while you do it.

The city needs to make their best possible case, and that requires disputing the facts and interpretations with their opponents. But they crossed a line two weeks ago when they accused their opponents of lying to the legislature and to the public.

Lanny Davis has no stake in the damage his disinformation campaign is creating. He doesn’t have to live in our bitterly divided community. He has no stake in whether the city wrecks its relationship with Coastal Commission. And he has no stake in the integrity of the Coastal Act. But the Half Moon Bay City Council will have to live in the wreckage this divisive campaign is leaving in its wake.

In an obvious parallel to Half Moon Bay’s AB1991, a Los Angeles developer is attempting to get the state legislature to pass a special exemption so he can develop 229 homes on a golf course that the city wants to keep as open space. As a bonus, the law appears to be a gift to the developer in exchange for a campaign contribution, reports the LA Times.

The company, MWH Development Corp., wants to construct 229 homes to replace the 63-acre golf course in Tujunga, which is not in Fuentes’ Assembly district. The firm is headed by San Fernando Valley developer Mark Handel, who said former Los Angeles Building Commission President Scott Z. Adler is a partner in the project.
...
"I was disgusted," said Councilwoman Wendy Greuel. "We believe Sacramento should not be trying to dictate land-use policy on city matters. We also don’t believe legislation should be designed to benefit one developer."
...
Greuel said Handel’s true goal is not to develop the property but to sell it at a profit. At the same time he is pushing the legislation, he is talking to the city about a possible sale of the land to the city, which would maintain it as open space. Greuel says Handel wants permission for the high-density development to raise the property’s value so he can get a better price.

The Times says the bill "was written so it applies only to the city of Los Angeles and makes changes that would specifically address Handel’s wish to build on the golf course site."

Click poster for MCC, click below for agenda.

The city of Half Moon Bay has released a financial analysis of the cost of developing Beachwood should the state legislature decide not to accept its settlement.

The city’s investment bankers, Piper Jaffray, estimate that the city will lose $48 million if 19 houses can be built on the site, and $9 million if 129 houses can be built.

We’re going to dig more deeply into these numbers in the near future, and we’ve already got some ideas about what to do, but tonight, you can download the Piper Jaffray’s analysis [pdf] and an Excel spreadsheet of their numbers from Coastsider.

What do you think of the city’s numbers? What would you be considering if you were presented with this analysis? Add your thoughts in comment to this story and we’ll add your ideas to our analysis of the city’s analysis.

Last week, Assemblyman Gene Mullin betrayed the core environmental values of the Democratic party by teaming up with Republicans to pass AB 1991. The bill seeks to exempt the 129-house Beachwood subdivision in Half Moon Bay from all state and local environmental and planning laws, so as to make millions for wealthy developer Charles “Chop” Keenan.

Less than half of the Democrats (18 of 48) voted yes on AB 1991, while nearly all of the Republicans (28 of 32) voted yes. Most of the Democrats who supported the bill are from Southern California, while only 4 of 13 Democrats from the Bay Area (including Mullin) voted yes.

The Half Moon Bay City Council has hired ex-Clinton lawyer Lanny Davis to lobby the Assembly for a free pass to do things that are illegal everywhere else in California. The Republicans gladly supported AB 1991, knowing that it would help lay the groundwork for future weakening of our state’s environmental laws.

To make matters worse, Mayor Bonnie McClung, with the high-priced help of spinmeister Davis, harmed the City’s reputation by insulting the official state regulatory agency that is charged with enforcement of the California Coastal Act.

All City Council members swear an oath to abide by the laws of the state and the City. The current Half Moon Bay City Council is spending our money in an effort to undermine those very same laws. Citizens who are offended by these actions should fax a letter to our state senator Leland Yee and ask him to strongly oppose AB 1991.

Kevin J. Lansing
Half Moon Bay

As the 19th Assembly District Democratic primary campaign heats up, our mailboxes have been flooded with claims of "special interest group" support for and against various candidates. I’d like to set the record straight about one of the candidates, Richard Holober. I have served on the San Mateo County Community College District Board of Trustees with Richard for four years, and have known him personally for many years before that.

The only "special interests" that Richard represents are hard-working families in San Mateo County and beyond. I have seen him work tirelessly to support apprenticeship programs for our youth who want to go into the building trades; in support of training more nurses and allied health professionals to improve healthcare right here in our county; and helping airport workers laid off after 9/11 gain job opportunities in biotech manufacturing. Richard believes in creating good jobs with fair wages and benefits that people can afford to live on right here in San Mateo County.

He has also been a tireless advocate for our rights as consumers for financial privacy and fair billing practices. Richard is an environmentalist, endorsed by both the Sierra Club and Vote the Coast, and is the candidate in this race who has not taken money from developers! While on the College Board, Richard has supported the expansion of classes offered in Half Moon Bay and led our "Green Building" efforts. The only "special interests" he represents are people like us. That’s why I’m joining our teachers and nurses in supporting Richard Holober for election to the State Assembly. I hope Coastside residents will also vote for Richard.

Dave Mandelkern
Trustee,
San Mateo County Community College District