CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF FEBRUARY 28, 2022
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The duly called and noticed special meeting of the City Council of the City of Foster City (City), sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID) of February 28, 2022 was called to order at 6:30 p.m. by Mayor/President Richa Awasthi.
Pursuant to Governor Newsom’s Executive Order N-29-20, as amended through Order N-08-21, the meeting was held as a teleconference meeting.
ROLL CALL
The Communications Director/City Clerk called the roll:
PRESENT: Councilmembers/ex officio EMID Directors Jon Froomin, Sanjay Gehani, Sam Hindi, Patrick Sullivan and Mayor/President Richa Awasthi.
ABSENT: None.
STAFF PRESENT: Kevin Miller, Interim City/District Manager, Benjamin Stock, City Attorney/Legal Counsel; Jennifer Phan, Interim Deputy City Manager; Edmund Suen, Finance Director; Marlene Subhashini, Community Development Director; Maria Saguisag-Sid, Human Resources Director; Tracy Avelar, Police Chief; Robert Marshall, Fire Marshal; Rob Lasky, IT Manager; Tiffany Oren, Recreation Manager, Yelena Cappello, Deputy City Clerk; Julie Paping, Interim Principal Management Analyst; Kevin Ortiz, Management Coordinator; Shuli Chen, Video Technician; and Priscilla Schaus, Communications Director/City Clerk/District Secretary.
STUDY SESSION
Mayor/President Awasthi recessed the meeting into Study Session for the Mid-Year Financial Review/Council Policy Calendar/Budget Strategies.
2ND QUARTER FY 2021-2022. FINANCIAL UPDATE. MINUTE ORDER NO. 1838.
Finance Director Suen presented the staff report.
Discussion ensued.
Motion by Vice Mayor/Vice President Froomin, seconded by Councilmember/Director Gehani, and carried unanimously by roll call vote, 5-0-0, to adopt Minute Order No. 1838, to receive and accept the 2nd Quarter FY 2021-2022 Financial Update report.
ORGANIZATIONAL ASSESSMENT - PRELIMINARY PROPOSALS FOR CITY RESTRUCTURING/GOVERNMENTAL OPERATIONS IMPROVEMENT. MINUTE ORDER NO. 1839. CITY RESOLUTION NO. 2022-19. EMID RESOLUTION NO. 3635.
Interim City/District Manager Miller presented the staff report.
Discussion ensued.
Motion by Councilmember/Director Hindi, seconded by Councilmember/Director Sullivan, and carried unanimously by roll call vote, 5-0-0, to adopt Minute Order No. 1839, receiving and accepting the Organizational Assessment - Preliminary Proposals for City Restructuring/Governmental Operations Improvement.
Motion by Vice Mayor/Vice President Froomin, seconded by Councilmember/Director Gehani, and carried unanimously by roll call vote, 5-0-0, to adopt City Resolution No. 2022-19, “A Resolution of the City Council of the City of Foster City Authorizing a Budget Appropriation in the Total Amount of $71,131 from the General Fund to Account No. 001- 0510-451-4110 & Account No. 001-0520-452-4110 ($35,566 & $35,565 Respectively) to Fulfill the Parks & Recreation Director Position for the Remainder of Fiscal Year 2021- 2022” and EMID Resolution No. 3635, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Authorizing a Budget Appropriation in the Total Amount of $71,131 from the General Fund to Account No. 001-0510-451-4110 & Account No. 001-0520-452-4110 ($35,566 & $35,565 Respectively) to Fulfill the Parks & Recreation Director Position for the Remainder of Fiscal Year 2021-2022.”
PREPARATION OF THE FY 2022-2023 ANNUAL BUDGET AND FIVE-YEAR FINANCIAL PLAN. MINUTE ORDER NO. 1840.
Interim City/District Manager Miller presented the staff report.
Discussion ensued.
By Consensus of the City Council, it was ordered to adopt Minute Order No. 1840, directing staff to:
1. Assess the current level of staffing for FY 2022-2023 to meet City Council’s strategic directives and continue to provide the same level of services to the community, provide a detailed line item budget outlining associated budgetary cost impacts as they relate to the maintenance of high service levels to the community to be submitted for City Council review at the May 9, 2022 Budget Study Session, and provide an informational report on potential revenue enhancement models at the March 7, 2020 City Council meeting;
2. Include a 5% wage increase placeholder pending the actual April 2022 CPI-U which is not scheduled for release until mid-May, 2022;
3. Provide the long-term capital improvement project (CIP) funding analysis to the City Council at its March 28, 2022 Budget Study Session using the current “pay as you go” funding model;
4. Present the internal service fund analysis at the March 28, 2022 Budget Study Session, and maintain current funding strategy employing a “pay as you go” philosophy for the equipment related replacement funds (vehicle, equipment, information technology, and building). Explore the possibility of utilizing an irrevocable trust for Public Employees' Medical & Hospital Care Act (PEMCHA)/ Other Post Employment Benefit (OPEB) liability and bring back a report for City Council consideration. Maintain the Longevity Recognition and PEMHCA retiree medical funds on a cash benefit basis, and maintain a $1 million self-insured reserve for potential claims against the City;
5. Maintain a minimum General Fund reserve of 33-1/3 to 50% of annual operating expenditures;
6. Maintain a minimum Water Enterprise Fund and Wastewater Enterprise Fund reserve of 25% of annual operating expenditures;
7. Maintain a $2 million reserve each for the City, Water Enterprise, and Wastewater Enterprise CIP funds;
8. Review the funding process for non-profit organizations at the March 21, 2022 City Council Meeting; and
9. Receive an updated Water and Wastewater Rate study report, including financial projections and preliminary rate recommendations for both enterprises, on March 28, 2022.
Meeting recessed into study session at 6:31 p.m. and reconvened at 8:43 p.m.
ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Awasthi adjourned the meeting. Meeting adjourned at 8:43 p.m.