Agenda packet — Foster City City Council, March 28, 2022 (part 1 of 2)

CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT

THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54953 (AS AMENDED BY AB 361) WHICH AUTHORIZES TELECONFERENCED MEETINGS UNDER THE BROWN ACT DURING CERTAIN PROCLAIMED STATES OF EMERGENCY. THE GOVERNOR OF CALIFORNIA PROCLAIMED A STATE OF EMERGENCY RELATED TO COVID-19 ON MARCH 4, 2020. THIS TELECONFERENCED MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT ESSENTIAL BUSINESS AND IS PERMITTED UNDER GOVER NMENT CODE 54953 IN ORDER TO PROTECT PUBLIC HEALTH AND SAFETY OF ATTENDEES. MEMBERS OF THE PUBLIC

THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY

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Consistent with Government Code Section 54953, this City/District Meeting will be held via teleconference in addition to in person. City Councilmembers/District Board and staff will attend in person or via teleconference.

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1 Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting. Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA

Monday, March 28, 2022 6:30 PM

SPECIAL MEETING

1. CALL TO ORDER

2. ROLL CALL

Councilmembers/ex officio EMID Directors Jon Froomin, Sanjay Gehani, Sam Hindi, Patrick Sullivan, and Mayor/President Richa Awasthi

3. PUBLIC

Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

4. STUDY SESSION

4.1. Policy Direction Regarding Preparation of Budget and Five-Year Financial Plan

4.2. Capital Improvement Funds

4.2.1. Five-Year Capital Improvement Program - FY 2022-2023 to FY 2026-2027

4.2.2. Long-Term Capital Improvement Projects Program and Funding Plan - City Capital Investment Fund - FY 2022-2023 to FY 2036- 2037

4.2.3. Long-Term Capital Improvement Projects Program and Funding Plan - Water and Wastewater Enterprise Funds - FY 2022-2023 to FY 2036-2037

4.3. Enterprise Funds

2 4.3.1. Review of Projected Water Rates for FY 2022-2023; Policy Direction for Rate Notification Under Proposition 218

4.3.2. Review of Projected Wastewater Rates for FY 2022-2023 to FY 2026-2027

4.4. Internal Service Funds

4.4.1. Internal Service Funds Summary

4.4.2. Vehicle Replacement Fund

4.4.3. Equipment Replacement Fund

4.4.4. Self-Insurance Fund

4.4.5. Information Technology Fund

4.4.6. Building Maintenance Fund

4.4.7. Compensated Absences

4.4.8. Longevity Recognition Benefits Plan and Public Employees' Medical and Hospital Care Act (PEMHCA) Benefits Plan Internal Service Funds

4.5. Updates to Master Fees and Service Charges Schedule for FY 2022- 2023

4.6. Special Reports

4.6.1. Project Recommendations from the Community Beautification Subcommittee

4.6.2. Community Benefits Fund

5. CLOSED SESSION

5.1. Public Employee Appointment (Government Code §54957) Title: City/District Manager

5.2. Conference with Labor Negotiator (Government Code §54957.6) Agency Designated Representative: Mayor/President
Unrepresented Employee: City/District Manager
3 5.3. Report Out from Closed Session

6. ADJOURNMENT

The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 286-3250 at least 48 hours in advance of the meeting.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) 4 DATE: March 28, 2022

TO:

Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

FROM: Kevin Miller, Interim City Manager
Jennifer Phan, Interim Deputy City Manager

SUBJECT: FY 2022-2023 BUDGET AND FIVE-YEAR FINANCIAL PLAN

STUDY SESSION SUMMARY

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors review the budget study session reports prepared for the March 28, 2022 Budget Study Session and provide policy direction relative to the preparation of the FY 2022-2023 Budget and Five-Year Financial Plan. Based on that policy direction, City/District staff will prepare the preliminary budget documents and the Proposition 218 public hearing notices for the water and wastewater rates.

EXECUTIVE SUMMARY/BACKGROUND
This budget study session focuses on the City/District funds, other than the General Fund, in order to prepare the preliminary FY 2022-2023 Budget and Five-Year Financial Plan and to properly notice the public hearings for water and wastewater rates. City/District staff has prepared a series of reports that will be reviewed by the City Council/EMID Board of Directors so that policy direction can be provided.

Based on the policy direction received at this study session, City/District staff will proceed to prepare the preliminary FY 2022-2023 budget documents that 5 will be reviewed by the City Council at its Preliminary Budget Review Study Session on May 9, 2022, followed by a budget public hearing on June 6 and then the final FY 2022-2023 budget will be considered for adoption by the City Council at its meeting on June 20, 2022.

ANALYSIS
This study session will focus on a number of budget reports that have been prepared either as part of the normal budget cycle or as requested by the City Council/EMID Board of Directors. The narrative below identifies assumptions and/or requests for direction in preparing the Preliminary FY 2022-2023 Budget.

CAPITAL IMPROVEMENT FUNDS

1. Five-Year Capital Improvement Program—FY 2022-2023 to FY 2026- 2027
The Capital Improvement Program (CIP) consists of projects to maintain and enhance the City/District’s infrastructure of roadways, sidewalks, utilities, structures, and facilities for the benefit of the community. City/District staff seeks adoption of the proposed Five-Year Capital Improvement Program – FY 2022-2023 to FY 2026-2027 in the FY 2022-2023 budget as detailed in the staff report or otherwise directed by the City Council/EMID Board of Directors.

2. Long-Term Capital Improvement Project Funding—City CIP Fund—FY 2022-2023 to FY 2036-2037
During each budget cycle, City staff updates its CIP needs and seeks affirmation of its Long-Term Capital Improvement Project (CIP) Funding program strategy. As part of its budget discussions last year, City Council directed staff to expand the 10-year forecast to 15-years. Staff is recommending “freeing” up the $10 million placeholder for the Levee Project to support other essential City CIP projects. Based on this update as well as the Fund’s reserve position, City staff recommends an escalation approach of $3.5 million General Fund transfers annually to the City Capital Investment Fund through FY 2028-2029, followed by $2.5 million annually for the following eight years of the 15-year forecast as detailed in the staff report or otherwise directed by the City Council.

3. Long-Term Capital Improvement Project Funding—Water and Wastewater Enterprise Funds – FY 2022-2023 to FY 2036-2037 6 Enterprise Funds are used to account for District operations that are financed and operated like private business enterprises. User charges are assessed to finance or recover the cost of providing the enterprise’s services to the general public on a continuing basis. The Water Enterprise Funds are for activities associated with providing water services including construction and maintenance of water distribution systems. Whereas, the Wastewater Enterprise Funds are for activities associated with wastewater collection and treatment. As is the case for the City’s CIP program, District staff has updated its CIP needs and seeks affirmation of its Long-Term Capital Improvement Project (CIP) Funding program strategy. As part of its budget discussions last year, the District Board directed staff to expand the 10-year forecast to 15- years. Staff identified $4.875 million of Water CIP projects over the next two years through FY 2023-2024 and $18.07 million of Wastewater CIP projects over the next three years through FY 2024-2025. Based on this update as well as the Water and Wastewater CIP Funds’ reserve position, District staff recommends scaling Water CIP funding at $2.5 million in FY 2022-2023, $1.75 million in FY 2023-2024, before leveling it at $1 million for the remaining 13 years of the 15-year CIP Plan, as well as scaling Wastewater CIP funding at $5.25 million for the first three years before leveling down to $2.1 million for the following 12 years as detailed in the staff report or otherwise directed by the EMID Board of Directors.

ENTERPRISE FUNDS

4. Projected Water Rates for FY 2022-2023
a. District staff seeks the adoption of a FY 2022-2023 water rate increase of 3.7% for fixed charges and 3% for variable charges for residential, irrigation and fire line customers based on the analysis contained in the rate study; and
b. District staff seeks authorization to proceed with distributing Proposition 218 Notice based on the EMID Board of Directors’ direction regarding water rates or as otherwise directed by the EMID Board of Directors.

5. Review of Projected Wastewater Rates for FY 2022-2023 to 2026-2027 a. District staff notes that there are three years remaining in EMID Board’s previously approved rolling 5-year wastewater rate increase schedule of 14.25% per year from FY 2021-2022 to FY 2022-2023, an 7 increase of 10.00% for FY 2023-2024, and an increase of 2.0% for FY 2024-2025. No pre-approved rate adjustment is requested for FY 2025- 2026 at this time; and
b. District staff seeks authorization to proceed with distributing a Proposition 218 Notice (as part of a combined notice for water rate increases) based on the EMID Board of Directors’ direction regarding an informational reminder that there is a 14.25% wastewater rate increase for FY 2022-2023 or as otherwise directed by the EMID Board of Directors.

INTERNAL SERVICE FUNDS

6. Internal Service Summary and Fund Balance Analysis
City/District staff seeks confirmation of the City Council/EMID Board of Directors’ policy on reserve levels and funding methodologies for its Internal Service Funds as detailed in the staff report. Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments on a cost reimbursement basis.

7. Vehicle Replacement Fund
The Vehicle Replacement Fund is for vehicle replacement, acquisition, and maintenance service charges and the related billings to various departments. Based on the vehicle replacement schedule and their age, twenty-two (22) vehicles had adequate funding for replacement in Fiscal Year 2022-2023. However, staff is recommending two (2) vehicles be scheduled and funded for replacement in FY 2022-2023.

This is based upon a thorough review of the maintenance history, usage, and condition. Staff does not anticipate that deferring the remaining vehicles will have a significant negative impact on City operations or on future scheduled replacements based on the overall condition of the fleet. One impact is the appropriation of funding to replace assets that have reached the end of their useful lives. These funds are available and budgeted in the Vehicle Replacement Fund.

The replacement value of assets that are scheduled for replacement in FY 2022-2023 is $74,814. Funding for two vehicles which have been ordered in FY 2021-2022, but are not anticipated to be received until FY 2022-2023, is also being carried over. The second budget impact is the transfer of funding for the future replacement of vehicles. The total recommended transfer is $379,710. The final budget impact is the 8 transfer of funding for replacement cost of vehicles and the cost of the Vehicle Maintenance operation, which is distributed among the various departments and funds based upon allocations that are determined by number of vehicles assigned. The total recommended transfer is $1,362,901. The FY 2022-2023 Vehicle Replacement Fund budget reflects an increase of approximately $16,994 (or 1%) compared to FY 2021-2022, totaling $1,977,502. The increase is due to a combination of reasons including an increase due to insurance, a decrease in the replacement of vehicles and equipment, a decrease in personnel costs and overhead charges, the addition of contingency funds, and an increase in adjustments to equipment-related purchases.

8. Equipment Replacement Fund
The Equipment Replacement Fund is for equipment replacement, acquisition, and the related billings to various departments for Non- Enterprise fund assets. City/District staff seeks confirmation to proceed with preparing the Equipment Replacement Fund budget based on the recommendations and allocations contained in the staff report or as otherwise directed by the City Council/EMID Board of Directors. Overall, the Equipment Replacement Fund is adequately funded. Staff did an analysis of all assets, adjusting replacement values and useful life estimates to accurately reflect the best information currently available about each asset. One impact is the appropriation of funding to replace assets that have reached the end of their useful lives. These funds are available and budgeted in the respective Equipment Replacement Funds. The replacement value of assets that are scheduled for replacement in FY 2022-2023 total $724,825. The second budget impact associated with the Equipment Replacement Fund is the transfer between funds of replacement charges for each asset. The overall changes in replacement charges for the Non-Enterprise (General) Fund, Water Fund, and Wastewater Fund is a $234,421 (or 38%) decrease, a $123,096 (or 19%) decrease, and a $11,443 (or 5%) increase, respectively, compared to FY 2021-2022.

9. Self-Insurance Fund
The Self-Insurance Fund is for charges to the various departments for general liability and property insurance premiums, defense costs, and related administrative costs. City/District staff seeks confirmation to prepare the Self-Insurance Fund budget based on the recommendation to maintain a minimum Self-Insurance Fund Reserve Balance of $1 million, along with allocations contained in the staff report or as 9 otherwise directed by the City Council/EMID Board of Directors. With revenues and expenditures projected through June 30, 2021, the estimated fund balance beginning FY 2022-2023 will be $1,015,302 which is above the $1 million reserve target. For FY 2022-2023, the amount budgeted for premiums includes an increase of 47% above the previous year which reflects continued volatility in the insurance market that continues to experience considerable losses in natural disasters, cyber-attacks, and fires throughout the United States and in California.

Self-Insurance internal services charges in the various department budgets reflect an overall increase of $618,897 (or 105.06%) compared to FY 2021-2022 in assessments.

10. Information Technology Fund
The Information Technology Fund is for information technology-related acquisitions, maintenance service charges, and the related billings to various departments. City/District staff seeks confirmation to proceed with preparing the Information Technology Fund budget based on the recommendations and allocations contained in the staff report or as otherwise directed by the City Council/EMID Board of Directors. The total Information Technology internal service charges for FY 2022-2023 will be a decrease of $80,370 (or 3.24%) compared to FY 2021-2022, totaling $2,403,528. The overall decrease is related primarily to lower cost capital replacement projects planned for FY 2022-2023 compared to those in FY 2021-2022.

11. Building Maintenance Fund
The Building Maintenance Fund is for management, maintenance, janitorial service, and some capital replacement for all City/District buildings and building-related equipment. City/District staff seeks confirmation to proceed with preparing the Building Maintenance Fund budget based on the recommendations and allocations contained in this report or as otherwise directed by the City Council/EMID Board of Directors. One impact is the appropriation of funding to replace assets that have reached the end of their useful lives. These funds are available and budgeted in the Building Maintenance Fund. The replacement value of assets that are scheduled for replacement in FY 2022-2023 is $800,000. The second and third impact is the transfer of funding for replacement cost of building items and the cost of the Building Maintenance operation, which is distributed among the various departments and funds based upon allocations that are determined by square footage of building space. The total recommended transfer for 10 future replacement of building components is $485,261. Whereas, the total recommended transfer to fund the Building Maintenance operation is $2,920,602. The FY 2022-2023 Building Maintenance Fund budget reflects an increase of approximately $448,443 (or 0.7%) compared to FY 2021-2022, totaling $3,720,602. The increase is due to a combination of reasons including an increase in personnel costs and overhead charges, an increase of scheduled building replacement projects, and an increase of equipment-related costs.

12. Compensated Absences Fund
The Compensated Absences Fund is for vacation and sick leave benefits which have monetary value and must be paid out to employees upon separation of employment in accordance with the terms of an existing memorandum of understanding or compensation and benefits plan. City/District staff seeks confirmation to proceed with preparing the Compensated Absences Fund continuing the current compensated absences accrual rate of 3.25% in order to maintain an adequate reserve balance through FY 2022-2023. The resulting FY 2022-2023 Compensated Absences Fund charges to the General Fund and Special Revenue Funds are estimated to be $557,850 and $3,186 respectively, for a total of $561,036. This represents an increase of $66,668 (or 13.5%) compared to FY 2021-2022.

13. Longevity Recognition Benefits Plan and Public Employees’ Medical and Hospital Care Act (PEMHCA) Benefits Plan
The Longevity Recognition Benefits Plan Fund is for benefits paid to retired employees in accordance with benefit plans approved in labor contracts and/or compensation and benefits plans, funded by charges to operating departments based on salary costs. Whereas the Public Employees' Medical and Hospital Care Act (PEMHCA) Benefits Plan Fund is for benefits paid on behalf of retirees participating in the CalPERS’ PEMHCA medical benefits plan. In order to fund each Plan’s benefits, the City Council/EMID Board previously established Internal Service Funds and authorized transfers from the General Fund, Enterprise Funds, and other Internal Services funds to the Longevity and PEMHCA Internal Service Funds. Internal service charges are assessed to the applicable departments “receiving” the Longevity and/or PEMHCA benefit. City/District staff seeks confirmation to include an appropriation request of $229,320 and $178,927 respectively in the FY 2022-2023 proposed budget for projected benefit and actuarial services expenditures in the Longevity Recognition and PEMHCA 11 Benefits Plan. The proposed FY 2022-2023 expenditure budget for the Longevity Recognition and PEMHCA Benefit Internal Service Funds are $238,320 and $229,706 respectively. The proposed Internal Service charges to City departments are $229,320 and $220,706 respectively, which represents no increase and an increase of $15,396 respectively compared to FY 2021-2022. Additionally, City/District staff is seeking the City Council/EMID Board's interest in establishing and funding an Other Post Employment Benefit (OPEB) Trust (i.e. IRC Section 115 Irrevocable Trust).

MASTER FEES AND SERVICE CHARGES SCHEDULE

14. Updates to Master Fees and Service Charges Schedule for FY 2022- 2023
The City/District charges fees to the community based on the costs of services provided. These fees are documented in the City/District’s Master Fees & Charges Schedule. The Master Fees & Charges Schedule is approved annually by the City Council/EMID Board, and individual fees may be amended from time to time during a fiscal year.

City/District staff recommends that most fees be raised by 4% based on the higher costs of providing services by the City/District; which is driven primarily from increased personnel costs, as well as the cost of supplies and services that support the delivery of those services to the community. As detailed in the staff report or otherwise directed by the City Council/EMID Board, the updates to the Master Fees & Charges Schedule includes the Community Development Department
recommending modifying the existing General Plan and Zoning fee in order to accumulate resources to do a future comprehensive update of the General Plan, in addition to the Parks and Recreation Department proposing 1) Bocce Court rental rate amendment from $20/hour to $26/hour; 2) new outdoor volleyball court rental fees at Catamaran Park and Boothbay Park of $26/hour and 3) a new fee structure for Leo J.

Ryan Park amphitheater rentals.

SPECIAL REPORTS

15. Project Recommendations from the Community Beautification Subcommittee
City staff has provided an informational report outlining the Community Beautification Subcommittee's project recommendations for improving the City’s physical image and appearance. Some of these 12 recommendations are already programmed in existing or proposed Capital Improvement Projects. Whereas some may be maintenance- related or may require further discussion as possible future projects.

16. Community Benefits Fund
City staff has provided a supplemental report with the intent of full transparency and is seeking direction regarding the uses of Community Benefits Fund money, including direction on appropriation of funding for the FY 2022-2023 budget, and focus areas for consideration of Community Benefits Fund use. The Community Benefits Fund will have approximately $1.21 million available on June 30, 2022. Staff has identified projects appropriate for use of Community Benefits Fund money to be carried out in FY 2022-2023 and is requesting City Council input on the appropriation of $520,000 from the Community Benefits Fund to be included in the FY 2022-2023 budget.

CONCLUSION
Based on the policy direction received at this budget study session, City/District staff will prepare the preliminary budget documents for City Council/EMID Board of Directors consideration at the Budget Study Session on May 9, 2022. The culmination of the budget process will be the adoption of the final FY 2022-2023 Budget and Five-Year Financial Plan, which the City Council/EMID Board of Directors will consider at its June 20, 2022 regular meeting.
13 DATE: March 28, 2022

TO:

Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim City/District Manager

FROM: Louis Sun, Public Works Director

SUBJECT: FIVE YEAR CAPITAL IMPROVEMENT PROGRAM – FY 2022- 2023 TO FY 2026-2027

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors review the proposed Five-Year Capital Improvement Program – FY 2022-2023 to FY 2026- 2027 - and authorize City/District staff to include the program in the FY 2022- 2023 budget as presented, adjusted, and recommended.

EXECUTIVE SUMMARY
As part of the City/District’s Annual Budget process, City/District staff prepares a Five-Year Capital Improvement Program (CIP) plan consisting of projects to maintain and enhance the City/District’s infrastructure of roadways, sidewalks, utilities, structures, and facilities for the benefit of the community. Because the costs of such improvements are usually significant, the plan anticipates future costs and sets forth a financial strategy to fund each project over a five-year period.

The proposed five-year capital improvement plan for the period starting FY 2022-2023 is comprised of funding for thirty-six (36) projects. 14 BACKGROUND AND ANALYSIS
The proposed FY 2022-2023 to FY 2026-2027 CIP plan consists of new funding for thirty-six (36) open and new projects over the next five years from various funding sources. The plan is organized into categories including Building, Parks, Stormwater/Lagoon, Streets/Traffic, Water, and Wastewater Projects.

The plan consists of twenty-six (26) new projects and ten (10) existing projects, including the the Wastewater Treatment Plant Master Plan Improvements Project. Twenty (20) currently open projects, including the multi-year Levee Protection Planning and Improvements Project, are on the workplan with no additional funding required.

The City Council approves the appropriation of funding on an annual basis.

Table 1 provides a summary of the FY 2022-2023 projects that are recommended for appropriation and their identified funding sources.

Table 1: FY 2022-2023 CAPITAL IMPROVEMENT RECOMMENDED APPROPRIATION

PROJECT NAME FUNDING
SOURCE
AMOUNT

BUILDING PROJECTS
(301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS
(2018-2019)
CC/BMF 1,660,000
(301-700) FUEL SYSTEMS IMPROVEMENTS (2021-
2022)
CC/CW/CWW 2,500,000
(NEW) GOVERNMENT CENTER REHABILITATION
(2022-2023)
CC 200,000
(NEW) INSTALL REAR SECURITY GATES (2022-2023) CC 500,000 (NEW) RENOVATE ELEVATORS IN CITY BUILDINGS
(2022-2023)
CC 800,000

PARKS PROJECTS
(NEW) SEA CLOUD PARK S4 SYNTHETIC
RESURFACING (2022-2023)
CC/Grant* 800,000

STREET / TRAFFIC SIGNAL PROJECTS
(301-698) TRAFFIC SIGNAL SYSTEM UPGRADES
(2020-2021)
MW 475,000
(301-703) STREET REHABILITATION (2021-2022) MA 1,500,000

STORM WATER/LAGOON PROJECTS
(301-690) SEISMIC IMPROVEMENTS AT LAGOON
PUMP STATION (2022-2023)
CC 150,000

WATER PROJECTS
15 (405-660) WATER TANKS AND FACILITIES
IMPROVEMENTS (2019-2020)
CWW 1,600,000
(405-704) WATER TRANSMISSION AND DISTRIBUTION
SYSTEMS IMPROVEMENTS (2021-2022)
CWW 1,000,000

WASTEWATER PROJECTS
(401-652) WASTEWATER TREATMENT PLANT
MASTER PLAN IMPROVEMENTS (2015-2016)
SRF/WIFIA/CWW 39,784,663
(NEW) SHELL BRIDGE SANITARY SEWER FORCE
MAIN REHABILITATION (2022-2023)
CWW 500,000
* BMF=Building Maintenance Fund; CC=CIP City; CW=CIP Water; CWW=CIP Wastewater; ERF=Equipment Replacement Fund; MA=Measure A; MW=Measure W; SRF=State Revolving Loan Fund, WIFIA=Water Infrastructure Finance and Innovation Act; Grant=Proposition 68 Parks Grant (reimbursement)

Full project descriptions and details on these projects, projects in the five-year plan, status of ongoing CIP projects, and the detailed fiscal impact to each fund can be found in the attachments to this report.

STRATEGY FOR THE FUTURE
Attachments 1 and 2 provide a financial summary and narrative description of the proposed Five-Year Capital Improvement Program Plan.

Attachment 3 shows the prioritization of the thirty (30) open and on-going CIP projects and five (5) new priority projects proposed for FY 2022-2023.

Completing and closing these projects is a top priority for the Public Works Department as additional priority projects have been identified in the five (5) and fifteen (15) year timeframes, including a major new lagoon dredging project.

While the Engineering Division does rely on consulting services for some technical assistance, City staff is key to managing maintenance and Capital Projects Citywide. Maintaining staffing levels has been a major factor over the past two (2) years in the Department’s ability to execute, complete and close projects. The Human Resources and Public Works teams continue to work to recruit for and fill key vacancies that are essential to the Capital Project process.

While all of the projects are important, of specific note are the placeholders for the Lagoon Dredging Project in FY 2027-2028 for $300,000 and FY 2028-2029 for $2,000,000. Staff will be evaluating the need to accelerate this project, and may propose moving the $300,000 into the Fiscal Year 2023-2024 budget in order to start the minimum two-year planning process for this significant project.

The planning process will include securing environmental clearance, finalizing 16 project design, identifying solutions for spoils disposal, completing all legal requirements and acquiring right of entry agreements with waterfront property owners. Also part of this planning process will be to develop a firmer cost estimate, which is likely to be orders of magnitude larger than the $2,000,000 placeholder. The last lagoon dredging project cost around $5,000,000 and was completed in 2005.

Also of special note, the Recreation Center Replacement Project funding has not been shown in the Capital Improvement Plan, but will be added based upon City Council approval of the funding. The Project is prioritized in the workplan as shown in Attachment 3, and a draft project timeline is included in Attachment 4.

As part of the FY 2022-2023 proposed budget, Public Works Department is recommending the addition of two positions, an Associate Engineer and a Senior Engineering Technician that will be part of a core team to manage the three major CIP projects.

FISCAL IMPACT
To the extent possible, every effort has been made to program funding for the Capital Improvement Program Plan with non-General Fund funding sources. In Fiscal Year 2022-2023, of the $51,469,664 total proposed funding (including the Wastewater Treatment Plant project), $3,760,000, or about 7.3% is from the General Fund. The remaining funding is from the Building Maintenance Fund; Water CIP; Wastewater CIP; Equipment Replacement Fund; Measure A; Measure W; State Revolving Loan Fund, Water Infrastructure Finance and Innovation Act; and Proposition 68 Parks Grant.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This item supports the "Facilities and Infrastructure" Value/Priority Area which identifies the importance of maintaining a standard of excellence with regards to infrastructure to preserve and enhance quality of life for future generations, and the "Smart Planning, Development, and the Local Economy" Value/Priority Area, which emphasizes the need to create a long-term vision that protects, maintains, and enhances our community character through thoughtful planning, and the "Innovation and Sustainability" Value/Priority Area, which encourages employing modern solutions to current day problems.
17 Attachments:
Attachment 1 - Proposed Capital Improvement Program FY 2022-2023 to FY 2026-2027 (Narrative)
Attachment 2 - Proposed Capital Improvement Program FY 2022-2023 to FY 2026-2027 (Tables)
Attachment 3 – Priority Projects for Active and Proposed CIP’s through FY 2022-2023
Attachment 4 – Recreation Center Draft RFP Timeline
18 Attachment 1
FY 2022-23 Capital Improvement Program Page 1 2/14/2022 16:52 Capital Improvement Program
The Capital Improvement Program (CIP) consists of projects to maintain and enhance the City/District’s infrastructure of roadways, sidewalks, utilities, structures, and facilities for the benefit of the community.

The primary objective of the CIP is to develop and implement projects to ensure continued and reliable delivery of service to meet the City/District’s needs. The following is a summary of active projects to be managed during Fiscal Year 2022-2023.

Ongoing Projects:
(CIP 455-626, Budget $8,075,000) Sanitary Sewer Lift Station Improvements - Phase 5 (2012-2013) This project continues the District’s program of maintaining sanitary sewer lift stations by performing preventative maintenance and upgrading equipment to extend the useful life of the lift stations. The rehabilitated lift stations will also provide a safer working environment for operational staff. The improvements include repairing interior wet wells; installing new pumps, motors, and valves; replacing electrical and telemetry control systems; installing bypass piping and connections; and replacing corroded components with stainless-steel components. This project addresses the rehabilitation 10 lift stations.

On April 17, 2017, the EMID Board of Directors adopted Resolution No. 3392 authorizing the award of the construction contract to Anderson Pacific Engineering Construction, Inc.

The work at the lift stations is substantially complete; however, several punch list items remain at Lift Station 7, which must be addressed by the Contractor.

Project Timeline:

Design: Complete
Construction: Ongoing
19 Attachment 1
FY 2022-23 Capital Improvement Program Page 2 2/14/2022 16:52 (CIP 301-635, Budget $345,540) Median Modifications – Foster City Boulevard at Chess Drive – Multi-Project #3 (2013-2014)
The project addresses improvements at the intersection of Foster City Boulevard and Chess Drive. The project includes lengthening the northbound left-turn lanes on northbound Foster City Boulevard at Chess Drive to reduce the likelihood of traffic queues extending out of the turn lanes into the through traffic lanes on Foster City Boulevard.

On August 4, 2014, the City Council adopted Resolution No. 2014-86 authorizing an agreement with BKF Engineers, Inc. to prepare construction contract documents and provide construction support services for both CIP 301-635 and CIP 301-637 (described later in this document). The design and construction of these projects were combined to maximize efficiency. Design is complete and the Caltrans encroachment permit has been issued to the City. Prior to the advertisement of the project, Gilead Sciences must grant an easement to the City to allow for the construction improvements. The grant of easement is currently in the process of being finalized.

The Multi-Project Roadway Improvements were funded by four large developments based on each development's contribution to traffic impacts. The funds were identified in each development's Master Development Agreement and were allocated to CIP 301-635 and CIP 301-637. Staff is in the process of reviewing proposals for Construction Management services. Construction is anticipated to commence following selection of a CM Firm.

Project Timeline:

Design: Ongoing
Construction: FY 2022-2023
(CIP 405-636, Budget $1,335,000) Water System Improvements and Valve Replacements (2013- 2014)
This project is part of the District’s ongoing program to maintain and upgrade the water system by installing and/or replacing valves and appurtenances to improve reliability and minimize service interruption to the customers.

The project is comprised of replacing broken water valves at the intersections of East Hillsdale Boulevard and Edgewater Boulevard, as well as Mariner’s Island Boulevard and Fashion Island Boulevard and installing bypass assemblies, valves, pipe segments, and other appurtenances to the 24-inch transmission main near the Seal Slough Bridge in the City of San Mateo.

On December 16, 2019, the EMID Board of Directors adopted Resolution No. 3499 authoring the award of the construction contract to EPS, Inc. dba Express Plumbing. Construction of the valves and bypass is substantially complete, however punch list items remain to be addressed by the contractor. This project is anticipated to be closed out in Spring 2022.

Project Timeline:

Design: Complete
Construction: Ongoing
20 Attachment 1
FY 2022-23 Capital Improvement Program Page 3 2/14/2022 16:52 (CIP 301-637, Budget $1,141,000) Road Widening - Foster City Boulevard and Chess Drive – Multi- Project #4, Multi-Project #7, and Multi-Project #8 (2013-2014) The project addresses improvements at the intersection of Foster City Boulevard and Chess Drive. The improvements include adding a northbound right-turn lane on Foster City Boulevard at Chess Drive; lengthening the westbound left turn lane on Chess Drive at Foster City Boulevard; and adding a westbound lane on Chess Drive east of Foster City Boulevard.

On August 4, 2014, the City Council adopted Resolution No. 2014-86 authorizing an agreement with BKF Engineers, Inc. to prepare construction contract documents and provide construction support services for both CIP 301-635 and CIP 301-637 (described above). The design and construction of these projects were combined to maximize efficiency. Design is complete and the Caltrans encroachment permit has been issued to the City. Prior to the advertisement of the project, Gilead Sciences must grant an easement to the City to allow for the construction improvements. The grant of easement is currently in the process of being finalized.

The Multi-Project Roadway Improvements were funded by four large developments based on each development's contribution to traffic impacts. The funds were identified in each development's Master Development Agreements and were allocated to CIP 301-635 and CIP 301-637. Staff is in the process of reviewing proposals for Construction Management services. Construction is anticipated to commence following selection of a CM Firm.

Project Timeline:

Design: Complete
Construction: FY 2022-2023
(CIP 455-652, Budget $103,379,766) Wastewater Treatment Plant Master Plan Improvements (2015- 2016)
The Clean Water Program (CWP) includes capital improvements to the San Mateo Wastewater Treatment Plant (WWTP) and San Mateo’s sanitary sewer collection system necessary to replace aging infrastructure and meet regulatory requirements.

In 2021 (year 7), the CWP focused on the construction phase for most of its projects to assist with full project delivery and execution of major improvement projects. Some notable accomplishments include the following:

WWTP Upgrade & Expansion Project
•Submitted the quarterly reports for Water Infrastructure Finance and Innovation Act (WIFIA) loan compliance.
•Completed update of the WWTP operating cost forecast for the WIFIA loan period and for use in the City’s fiscal year planning and budgeting process.
•HDR completed the 100% design for Title 22 Recycled Water on April 5. •Trussell completed the draft Title 22 Disinfected Tertiary Recycled Water Engineering Report to meet regulatory requirement by the Division of Drinking Water:
21 Attachment 1
FY 2022-23 Capital Improvement Program Page 4 2/14/2022 16:52 •Obtained City Council approval for Cal Water to construct the Third Avenue water main extension to Detroit Drive site.
•PG&E completed final design for relocating its utilities. •Prepared the Authority to Construct (ATC) revised application for Tier 4 Compliant engines and submitted to the Bay Area Air Quality Management District (BAAQMD). •City Manager approved noise exception permit on May 28 for stage 2 pile driving. •Obtained the Phase 2 temporary construction easement (TCE) and permanent utility easement (PUE) from All-American Storage in February.
•City of San Mateo approved the WWTP Final Parcel Map.
•The program has been put on the fundable list for an up to $137M loan from State Revolving Fund (SRF).

GMP-1 (Site Preparation, Electrical and Storm Drain System Improvements for GMP3) •Installed SEMS (Service Entrance Meter Switchgear) platform, batteries, and gear. •Completed and tested the new Eductor Facility sewer manhole. •Completed the installation of new precast Southwest stormwater pump station. •Achieved 85% construction completion
GMP-2 (Foundations for GMP3)
•Completed the installation of approximately 1960 piles for the new treatment facilities Last pile driven on September 9, 2021.
•Achieved 95% construction completion.

Immediate Action Project Package 2
•Completed startup of Sludge Cake Pump 2.
•Completed Digester Piping Scope of Work
•Completed Centrifuge Control Panel and Sludge Hopper Control Panel source testing. •Completed installation of Sludge Cake Pump No. 1 and initiated startup. 22 Attachment 1
FY 2022-23 Capital Improvement Program Page 5 2/14/2022 16:52 Immediate Action Project Package 3
•HDR submitted and Program team reviewed the 90% design documents. •Received a preliminary estimate for 90% Design of $9.4 million. •Project Management is currently reviewing this estimate and reconciling cost to try to get closer to original budget of $6.7M.

Annual Major Components 6 + 23
•Awarded project to Express Plumbing and construction began on October 11, 2021.

Annual Major Components 20
•Work associated with the compressed natural gas to boiler tie-in, was cancelled after SM City Council approved to decommission compressed natural gas at the WWTP. •Scope of work for the Sludge Heating Recirculation Piping Replacement will be incorporated into the design for IAP3.

In 2022 (year 8), the CWP will continue to focus on full project delivery and execution of major improvement projects. Key year 8 program activities will include the following:
•Program administration, program controls, economic management, document management, odor control support, oversight of 3rd party construction management teams, environmental permitting support, and public outreach.
•Project management, construction management, and inspection for the following projects:
◦Immediate Action Project 2
◦WWTP Upgrade and Expansion Project (GMPs 1, 2, & 3)
◦WWTP Annual Major Components Projects
◦Design for Immediate Action Project 3
Continue project management for the Construction Manager at Risk (CMAR) (Sundt). •Continue to pursue SRF funding.
•Issue additional bonds as needed.
•Continue public outreach as major construction gets underway.

Erler & Kalinowski, Inc. is continuing to provide technical support services for EMID. Foster City’s share of the CWP is estimated at $154 million dollars over the life of the project.

Project Timeline:

Design: Ongoing
Construction: Ongoing through FY 2025-2026
(CIP 301-655, Budget $925,000) Leo Ryan Park Lawn Conversion and Bocce Court Expansion (2015-2016) – (On Hold)
The project is on hold until the future of the Recreation Center and surrounding amenities is determined. 23 Attachment 1
FY 2022-23 Capital Improvement Program Page 6 2/14/2022 16:52 (CIP 301-657, Budget $85,000,000) Levee Protection Planning and Improvements Project (2015- 2016)
This project will raise the levee to meet the required elevation per Title 44 of the Code of Federal Regulations (CFR), section 65.10, to retain accreditation. Based on the FEMA coastal flood hazard study, roughly 85 percent of Foster City’s levee system does not meet the required freeboard elevation. Without the improvements, Foster City would be designated as a high-risk Special Flood Hazard area and property owners with federally backed loans would be required to purchase annual flood insurance.

To date, following milestones have been completed:

1. The Bay Trail was closed and the closure periods occurred in three phases:

Phase 1: October 2020 - January 2023 (Southern portion of project to Shorebird Park) Phase 2: January 2021 - December 2022 (Shorebird Park to Bridgeview Park) Phase 3: April 2021 - January 2023 (Brigeview Park to the City limits at the northern-most section of the trail)

2. The Senior Civil Engineer position was created and filled.

3. Right of Entry Agreements to allow work on all adjacent properties were executed this year.

4. Sheet pile installation was completed for Phase 1, 2, and 3 with the exception of isolated locations in Phase 1.

5. Three (3) miles out of 4.2 miles of concrete cap on the sheet piles have been completed.

6. Operations to install retaining walls, flood walls, and lightweight concrete fill adjacent to the sheet piles have begun in all phases and are ongoing in various stages.

7. Operations to excavate, backfill, and compact the base of the levee trail have begun and are ongoing.

8. The Baffin Street bridge has been installed to reestablish full tidal flows to a portion of the O’Neil Slough.

9. Demolition and preparation work has been completed for the new pedestrian bridge adjacent to Bayside Towers.

10. Construction related to the revisions for Floodwall 19 completed (CCO #11; $3.2 M).

11. The Caltrans Encroachment Permit was acquired in December 2021, allowing the Contractor to start work by the San Mateo Bridge as part of Phase 3.

12. The PG&E gas line relocation at the Baffin Street bridge was completed.

13. Project team continues to work with Caltrans, PG&E and other utility companies to resolve right- of-way and utility conflicts.

14. Coordinated with Bowditch Middle School and Safe Routes to School to create and implement temporary efficient, but safe alternative routes for students.

15. Project outreach is on-going.

Project Timeline:

Design: Complete
Construction: Ongoing through January 2024
(CIP 405-660, Budget $3,200,000) Water Tanks and Facilities Improvements (2016-2017) The water storage tanks provide water storage for emergencies, peak use periods, and firefighting. The project addresses improvements to the three steel water storage tanks and the water booster pump station. 24 Attachment 1
FY 2022-23 Capital Improvement Program Page 7 2/14/2022 16:52 On April 4, 2020, the District Board adopted Resolution No. 3508 authorizing the combining of the Water Tanks Improvements Project (which was comprised of CIPs 405-660, 405-670, and 405-688) with 405-687 Seismic Improvements at Water Booster Pump Station Project; and renaming the project CIP (405-660) Water Tank and Facilities Improvements Project. The scope of work of the combined projects consists of (1) refurbishing the 3 steel tanks by repairing corroded steel and applying new coating to the interior and exterior surfaces; (2) the installation of water mixing devices inside the 3 steel tanks to prolong water quality; (3) seismically retrofitting the existing drainpipes and installation of new drainpipe at the side of the tanks; and (4) reinforcement of the door frame to the water booster pump station and the installation of flexible connections on the underground utilities entering the building.

The total combined project budget is $4,100,000. The construction documents are 90% complete. The 90% construction cost estimate exceeded the 50% construction cost estimate and an additional $4,000,000 will be requested for the FY2022-2023. Construction is anticipated in Fall 2022.

Project Timeline:

Design: Ongoing
Construction: FY 2022-2023
(CIP 301-677, Budget $120,000) Library Exterior Wall Sealing and Tile Installation (2017-2018) The project will permanently address water infiltration that has occurred from the exterior into the Library building interior on the southwest wall of the building. The infiltration is most likely due to the failure of joint sealant at the exterior wall/foundation joint and the earth mounded against the exterior wall above that joint.

Water intrusion has been significantly addressed by removing soil from around the southwest wall of the building. In addition, the roots of the trees adjacent to the north wall of the library have damaged the building which has contributed to the water intrusion.

This project consists of the removal of earth around the building, sealing the wall, installing wall drain and drainpipes, removing tiles, re-grading the earth around the exterior of the building, removing trees, and installing new landscaping and sidewalk on the north side of Civic Center Drive.

Similar work was performed to cure water infiltration issues on the northwest wall of the building and staff re-landscaped the adjacent area into an attractive drought tolerant and water efficient habitat garden to attract pollinators such as butterflies and hummingbirds.

The soil removal and landscaping will be performed in-house by staff. A consultant will develop project plans and specifications to seal the wall and install appropriate drainage from the building and incorporate the hardscape improvements.

Project Timeline:

Design and Construction: FY 2023-2024
25 Attachment 1
FY 2022-23 Capital Improvement Program Page 8 2/14/2022 16:52 (CIP 301-678, Budget $300,000) Recreation Center Replacement (2017-2018) On January 23, 2019, the City Council by Minute Order No. 1585 accepted the Final Recreation Center Master Plan Conceptual Design Report. On January 31, 2022, the City Council received an update that included the results of a Community Survey to validate the Community Input that had been received in the extensive community engagement that was completed, pre-pandemic, in 2017. The City Council adopted Minute Order 1832, directing staff to 1) Accept the Recreation Center and Parks System Survey results, confirming staff has satisfied the City Council’s interest in validating programming and usage assumptions; 2) Proceed with a “build-to-budget” option for the Recreation Center in an amount not-to-exceed $55 million; and 3) Proceed with utilizing $36 million from the Capital Asset Acquisition and Replacement Fund and $19 million from the General Fund Reserves for the total not-to-exceed budget of $55 million for rebuilding the Recreation Center. Staff will be bringing actions to the City Council to move this project forward in the coming year.

Project Timeline:

Pre-Design/Design: FY 2022-2023
Construction: TBD
(CIP 301-681, Budget $3,882,500) New Traffic Signals at Various Locations (FY 2018-2019) This project implements the new traffic signals identified in the Bicycle, Pedestrian, and Intersection Evaluation Study (CIP 301-664) completed in February 2018. Traffic signals will be constructed at the intersections of (1) Beach Park Boulevard and Gull Avenue (North), (2) Foster City Boulevard and Polynesia Drive, (3) Edgewater Boulevard and Port Royal Avenue (North) and (4) Beach Park Boulevard and Shell Boulevard.

On November 18, 2019, the City Council adopted Resolution No. 2019-108 authorizing a contract with Traffic Patterns to prepare construction contract documents and provide construction support services for the project; approving the inclusion of the traffic signal at the intersection of Beach Park Boulevard and Shell Boulevard to the scope of CIP 301-681; and accepting a payment in the amount of $32,500 from the School District to cover the School District’s share of design and construction support costs associated with a new traffic signal at the intersection of Beach Park Boulevard and Shell Boulevard.

Design is completed including work with PG&E to provide electrical power to the new traffic signals. Bidding is scheduled for March, followed by contract award in April and construction in summer 2022.

Project Timeline:

Design: Completed
Construction: FY 2021-2022 thru FY 2022-2023
(CIP 301-682, Budget $484,500) Park System Improvements (2018-2019) This project was created in Fiscal Year 2018-2019 to develop a strategic comprehensive plan for maintenance, replacement and upgrade of the City’s individual parks and park system as a whole.

In December 2018, the City Council adopted Resolution No. 2018-107 authorizing an agreement with Placeworks, Inc. to prepare the Park System Master Plan Study. On April 15, 2019, City Council by Minute 26 Attachment 1
FY 2022-23 Capital Improvement Program Page 9 2/14/2022 16:52 Order No. 1599, accepted a report on the status of the Park System Master Plan Study, after which it discharged Placeworks from the remainder of the scope of work of their agreement and directed Staff to continue to maintain and replace park infrastructure “as is.” The project was deprioritized during the Covid pandemic.

In Spring 2021, the City Council expressed a renewed interest in engaging a consultant to prepare a strategic and comprehensive Parks System Master Plan. Additional funds were approved in the FY 2021- 2022 Annual Budget, specifically for the purpose of increasing community engagement for the project. On January 31, 2022, the City Council adopted Minute Order 1832, accepting the Parks System Survey results.

Staff will continue to collaborate with the Council to move this project forward.

Project Timeline:

Community Engagement/Survey: November/December 2021
Plan Development: FY 2022-2023 and on-going
(CIP 301-685, Budget $380,000) HVAC Improvements in City Buildings (2018-2019) Due to the age of the Heating/Ventilation/Air Conditioning (HVAC) system at the Corporation Yard and changes in HVAC technology for this type of office building, the existing system cannot be refurbished and needs to be replaced.

This project consists of HVAC improvements to the Government Center Building (inclusive of the space occupied by the San Mateo Consolidated Fire Department), the Corporation Yard Administration Building, and the Police Station.

Project Timeline:

Design: FY 2022-2023
Construction: FY 2023-2024
(CIP 301-690, Budget $400,000) Seismic Improvements at Lagoon Pump Station (2019-2020) The Lagoon Pump Station located at the City/District’s Corporation Yard, houses two (2) engines and pumps used to pump water from the lagoon to the bay and controls the water level in the lagoon.

A seismic vulnerability assessment of the building by G&E Engineering Systems, Inc. was completed in 2013. The assessment concluded that the building meets the seismic code and recommended various improvements including (1) reinforcing the door frame of the roll-up door, (2) isolating the tidal channel walls from the north walkway of the building, (3) installing flexible connections on the underground utilities entering the building, and (4) securing equipment within the building.

Following an investigation of the building in Summer 2019, staff identified significant areas of spalling concrete and rusting reinforcing steel (re-bar) along the concrete walkway connected to the building.

Additional funding in the amount of $250,000 was added to the FY20-21 budget for the design and construction of the concrete walkway connected to the building. 27 Attachment 1
FY 2022-23 Capital Improvement Program Page 10 2/14/2022 16:52 In April 2020, the City Council awarded a contract to Murray Smith to perform professional engineering services for the project.

Murray Smith prepared a preliminary design report in May 2021 validating the 2013 study, which included recommendations to perform a future in-depth evaluation to include additional structural evaluation of the building and below water structures based on current building code standards beyond the scope of this project and provided temporary repair recommendations for the walkway until a comprehensive assessment could be performed. A separate CIP has been created to address the rehabilitation of the lagoon pump station building in its entirety including addressing the reinforcement of the door frame and concrete walkway.

This project will address items #2-4 from the original assessment and will fund the erection of a temporary walkway adjacent to the building. Plans and specifications are 90% complete. Staff is in the process of reviewing proposals for Construction Management services. Construction is anticipated to commence following selection of a CM Firm.

Project Timeline:

Design: Ongoing
Construction: FY 2022-2023
(CIP 301-693, Budget $1,235,000) Roof Replacements at City Buildings (2019-2020) This project consists of roof repair and/or replacements of various City Buildings including the Police Station, Teen Center, and various Corporation Yard Buildings (the Public Works water/wastewater/streets/lagoons workshops, storage room, locker room, and kitchen; the shared training room adjacent to the lagoon pump house building; the Parks key room, the Vehicle maintenance shop and small engine shop.

1. The Corporation Yard Buildings are some of the oldest buildings in Foster City. The roofs of these Buildings are over 20 years old. While maintenance and repairs have been conducted as needed, the roofs are due for replacement. Wood sheathing and roof soffits will be replaced, as required.

The remaining scope of work from CIP 301-669 Corporation Yard Facility Improvements Project consisting of the roof replacement of the training room and workshop buildings has been added to this project to more efficiently complete the required work. The unused remaining funding from CIP 301-669 will also be transferred to CIP301-693 as part of this budget process. The Police Station Roof was installed when the building underwent its major remodel in 2000 as part of the Government Center Project. Since that time, the Building Maintenance Division has performed maintenance and repairs to address leaks in the line-up room, kitchen and lobby areas. The roof is due for replacement.

2. The Teen Center Roof was installed approximately 11 years ago and is showing signs of wear.

Spot repairs will extend the roofs useful life for another 10 years.

3. The remaining scope of work for the Park Infrastructure Improvements Project (CIP 301-692) consisting of the roof repair and dry rot remediation of the Sea Cloud Park Maintenance Substation 28 Attachment 1
FY 2022-23 Capital Improvement Program Page 11 2/14/2022 16:52 Roof will be added to this project and The unused remaining budget from CIP 301-692 will be transferred to CIP 301-693 as part of the budget process.

An RFP for professional design services was issued in July 2021 to assist the Engineering Division with the delivery of the numerous CIP projects in the CIP program. Proposals were received in September 2021. An architectural consultant has been selected, and a contract for award is scheduled in spring with design to follow.

Project Timeline:

Design: FY 2021-2022
Construction: FY 2022-2023
(CIP 301-694, Budget $475,000) Dynamic Signage for Traffic Relief Pilot Program (2019-2020) To address concerns regarding cut-through traffic on East Hillsdale Boulevard during peak evening commute hours, on December 17, 2018, the City Council approved the implementation of a Traffic Relief Pilot Program (TRPP) for a three-month trial period.

On February 11, 2019, staff implemented the TRPP which restricted left turns from east-bound East Hillsdale Boulevard at the intersections at Edgewater and Shell Boulevards during peak evening commute hours from 4:00 PM – 6:00 PM, Monday through Friday (excluding major holidays). The pilot program involved staff manually shutting down the lanes nightly by placing cones to delineate the closed lane; stationing a vehicle in the turn lane; and staffing the lanes to prevent eastbound traffic from making left turns during the restricted period. The personnel costs are not sustainable on a long-term basis.

This next phase of the project includes (1) installing permanent dynamic signage at each of the two intersections that activate during the turn restriction period and (2) adding lighted signage.

On August 19, 2019, the City Council adopted Resolution No. 2019-084 authorizing the permanent implementation of the Traffic Relief Pilot Program (TRPP) and appropriated $225,000 from the CIP City Fund for the design and construction of the permanent improvements.

A contract in the amount of $31,500 was awarded to Traffic Patterns for professional engineering design services. Design was completed in May 2020. On June 15, 2020, approval of the plans and specifications and a request to call for construction was sought. To minimize construction delays and contractor mark- ups, the dynamic signage and traffic signal poles were to be procured by the City ahead of time. However, it was placed on hold due to reduced traffic due to the COVID-19 pandemic.

On March 29, 2021, the hold was removed during the Special City Council Meeting and authorization was given to procure the dynamic signage equipment and traffic signal poles.

On May 4, 2021, staff had received bids from two vendors for the acquisition of the signage equipment and poles and was approved to order them. An additional $250,000 was requested using SB1 Funds and accepted by the City Council via Minute Order No. 1765. 29 Attachment 1
FY 2022-23 Capital Improvement Program Page 12 2/14/2022 16:52 On August 16, 2021, the City Council adopted Resolution No. 2021-119, approving the plans and specifications and authorizing the call for bids. Mike Brown Electric was the apparent responsible and responsive low bidder. Construction began in January 2022 and is anticipated to be completed by April/May 2022.

Project Timeline:

Design: Complete
Construction: On-going, anticipated to be completed April/May 2022. (CIP 455-695, Budget $1,800,000) Lift Station 59 Effluent Line Improvements (2020-2021) This project is part of the District’s ongoing program of maintaining and upgrading the wastewater system through the replacement of appurtenances that have reached the end of their useful life and various improvements to the wastewater system to improve redundancy and reliability.

Improvements to the effluent line at Lift Station 59, located in the District’s Corporation Yard, include replacing the existing ultrasonic effluent flow meter with a new electromagnetic flow meter; installing a permanent emergency bypass to provide operational flexibility and redundancy; and replacing the existing 24” ball valve on the discharge force main.

On February 1, 2021, the City Council approved the award of engineering design services to BKF Engineers. Design is 90% complete. Staff is in the process of reviewing proposals for Construction Management services. Construction is anticipated to commence following selection of a CM Firm.

Project Timeline:

Design: Ongoing
Construction: FY 2022-2023
(CIP 455-696, Budget $900,000) Sanitary Sewer System Improvements (2020-2021) This project is a continuation of the District’s on-going program to assess the condition and perform repairs to the sanitary sewer collection system. Repairs are identified based on the video inspections performed by the District’s Public Works Maintenance staff.

The scope of the project includes the replacement, rehabilitation, reconstruction, and new installation of sanitary sewer pipelines, and manholesat three (3) locations within the District. The work was bid as options in the completed CIP 455-611 Sanitary Sewer System Improvements Project; however, the options were not exercised due to budgetary constraints.

On January 4, 2021, the EMID Board of Directors adopted Resolution No. 3553 authorizing an agreement with HydroScience Engineers, Inc. to prepare construction contract documents and provide construction support services. The construction contract documents are 90% complete. Construction is scheduled for FY 2023-2024 to give priority to more urgent construction projects. 30 Attachment 1
FY 2022-23 Capital Improvement Program Page 13 2/14/2022 16:52 Project Timeline:

Design: Ongoing
Construction: FY2023-2024
(CIP 301-697, Budget $1,500,000) Street Rehabilitation (2020-2021) This project will repair/resurface public streets. To implement this ongoing program in the most cost- effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand their pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the CIP project are determined primarily through the PMP program analysis.

The program also helps determine the most cost-effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired.

Sharrow symbols/legends will be incorporated in this project as appropriate. Design was performed in house by staff and is complete. Bidding is scheduled in March, followed by construction in summer/fall 2022.

Project Timeline:

Design: Ongoing
Construction: FY 2022-2023
(CIP 301-698, Budget $50,000) Traffic Signal System Upgrades (2020-2021) The City’s traffic signal system was evaluated as part of the Bicycle, Pedestrian, and Intersection Evaluation Study (CIP 301-664). This part of the study focused on inventory of the existing traffic signal infrastructure network and identifies opportunities to improve efficiency through either equipment or operations enhancements. This project is built upon recommendations from CIP 301-664 and will include the following tasks for design and construction:

1. Citywide Communications Upgrade

2. Traffic Signal Field Hardware
a. Vehicle and Pedestrian Signal Heads Replacement - This will require replacement of the traffic signal and pedestrian framework and installation of new light-emitting diode (LED) indications will refresh the City’s traffic signal equipment. b. Accessible Pedestrian Signals (APS) Replacement - This will require each APS unit (pedestrian push button) to be hardwired individually back to the traffic control cabinet c.Traffic Signal Cabinets Upgrade to NEMA TS-2 - Upgrade will maximize detection input opportunities (64-channels) and offer robust maintenance features that can be viewed at the central computer system.
31 Attachment 1
FY 2022-23 Capital Improvement Program Page 14 2/14/2022 16:52

3. Traffic Signal Controllers Replacement - Replacement of the existing traffic signal controllers that use either Ethernet or Fiber Optic cables will provide the City with the option to implement enhanced features.

4. Advanced Traffic Management System (ATMS) (Central Computer System Upgrade) - A new ATMS Central Computer System will provide an enhanced user interface with access to special functions such as traffic signal coordination, basic timing data access and modification, historical data queries, and user account privileges.

The City needs to consider how best to upgrade its network and potentially introduce enhancement of additional City services. Due to the complexity of the project, a technical memorandum will be prepared by a professional traffic engineering consultant that will compare the various upgrade alternatives and associated costs, provide recommendations for the preferred system based on the City’s current and future needs, recommend a phasing plan for design and construction of the improvements, and prepare a schedule for implementation. Staff is in the process of reviewing proposals for on-call Traffic Engineering services. This analysis is anticipated to commence following selection of a Traffic Engineering Firm.

Project Timeline:

Technical Memorandum: FY2023-2024
Design: FY2024-2025
Construction: FY2025-2026
(CIP 301-699, Budget $200,000) Corporation Yard Workshops Exterior Paint (2020-2021) The Building Maintenance Division maintains the quality of interior and exterior paint on all City facilities on an on-going basis. Periodically, City facilities require comprehensive paint replacement. The salt air where the Corporation Yard is located along the San Francisco Bay is especially hard on exterior paint.

The Corporation Yard Shops were last painted in 2007 and are due to be repainted to protect and maintain the overall appearance of the building. The project will include any necessary repairs to the building exteriors, such as replacing dry-rotted exterior wall sheathing.

Staff intends to perform this work following completion of CIP 301-693 Roof Replacements Project as the roofing project includes replacing sheathing of the workshops at the Corporation Yard.

Project Timeline:

Completion: FY 2022-2023
(CIP 301-700, Budget $250,000) Fuel Systems Improvements (2021-2022) The City has an unleaded fuel system and a diesel fuel system located in the Corporation Yard. The unleaded fuel system provides fuel for the vehicles and equipment of the City and Estero Municipal Improvement District (EMID). The diesel fuel system provides fuel to the vehicles, equipment, the lagoon pump engines, and the emergency generator for the Corporation Yard and Lift Station 59. The diesel fuel system also stores fuel for the emergency generators at EMID’s 48 lift stations. Fuel is trucked to lift stations, 32 Attachment 1
FY 2022-23 Capital Improvement Program Page 15 2/14/2022 16:52 as needed. These systems also provide fuel for other jurisdictions, such as the San Mateo Consolidated Fire Department, in emergency situations.

There are four existing fuel systems that are at the end of their useful life at the following locations:

1. Two 10,000 gallon underground unleaded fuel storage tanks (UGSTs), at the Corporation Yard entrance.

2. Two 5,000 gallon above ground diesel fuel storage tanks (AGSTs) in a covered, concrete vault immediately adjacent to and west of the lagoon pump station building.

3. One 210-gallon day tank for diesel fuel, located inside the lagoon pump station building.

4. One 1,000 gallon underground diesel fuel storage tank at E. Hillsdale Blvd and Edgewater, which provides power to the emergency generator at Lift Station No. 29 and traffic signal at the intersection.

TAIT Environmental Services was selected on February 11, 2021, to perform an assessment of the City’s fuel systems. TAIT completed its assessment of the fuel systems in January 2022 and developed a Technical Memorandum outlining recommendations for improvements including construction cost estimates. Staff is in negotiations with Tait for the design. Award of a design contract is anticipated in spring 2022. Based on the conceptual engineering study, additional funding is required for construction.

Project Timeline:

Preliminary Assessment: Complete
Design: FY 2022-2023
Construction: FY 2023-2024
(CIP 301-701, Budget $200,000) Sport Court Resurfacing (2021-2022) Sport Court surfaces are typically resurfaced every five to seven years to ensure that they are safe to play on and aesthetically pleasing, based on an evaluation of the condition of each court. This project consists of Edgewater and Catamaran Tennis Courts, Catamaran, Teen Center and Edgewater Basketball Courts and the Recreation Center Pickleball Courts. Design was performed in-house by staff and is complete. On February 7, 2022, the City Council authorized the advertisement of Plans and Specifications. Bid opening is scheduled for March 7, with construction anticipated to begin in May 2022. Contract duration is approximately one month.

Project Timeline
Design: FY 2021-2022
Construction: FY 2021-2022
(CIP 301-702, Budget $300,000) Park Pathway Restoration (2021-2022) This project will address pathways in Arcturus, Killdeer, Turnstone, Shad, Sunfish, Sea Cloud Park, Pilgrim Walkway, and Constitution Walkway. Improvements include removing and replacing failed and root- damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. 33 Attachment 1
FY 2022-23 Capital Improvement Program Page 16 2/14/2022 16:52 This project allows for annual maintenance of park pathways in conjunction with annual Street Rehabilitation projects to take advantage of economies of scale and allow more efficient project delivery.

This project will be combined with CIP (301-703) Street Rehabilitation Project. Design is anticipated to be completed in November 2022 with construction to follow in Summer 2023.

Project Timeline:

Design: In-house and ongoing annually with Street Resurfacing Projects Construction: FY 2022-2023 and Annually with Street Resurfacing Projects (CIP 301-703, Budget $1,700,000) Street Rehabilitation (2021-2022) This project will repair/resurface public streets. To implement this ongoing program in the most cost- effective manner, a Pavement Management Program (PMP) is used. The streets selected for the CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost-effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate. Construction of the Park Pathway Restoration Project (CIP 301- 702) will be performed in conjunction with this project to take advantage of economies of scale and allow more efficient project delivery. Design is anticipated to be completed in November 2022 with construction to follow in Summer 2023.

Project Timeline:

Design: In-house and Ongoing
Construction: FY 2022-2023 through FY 2023-2024
(CIP 301-704, Budget $250,000) Water Transmission and Distribution Systems Improvements (2021-2022)
This project is comprised of various smaller projects that were either identified as part of the Water Master Plan that was completed in 2020 or by the Maintenance Division during routine maintenance. The project is comprised of the following smaller projects: (1) Large water meter replacements; (2) Water Valve Improvements; (3) Pipeline extension at East Hillsdale Boulevard; and (4) Water Transmission Main Pipeline Condition Assessment.

Master Agreements will be entered into with one or more qualifying firms to provide design services. Design is anticipated to commence in fall 2022.

Project Timeline:

Design: FY 2022-2023 through FY 2023-2024
Construction: FY 2022-2023 through FY 2023-2024
34 Attachment 1
FY 2022-23 Capital Improvement Program Page 17 2/14/2022 16:52 (CIP 301-705, Budget $2,300,000) Emergency Generator Replacements (2021-2022) The project addresses the replacement of certain emergency generators and automatic transfer switches that are located at 10 of the District’s wastewater lift stations and are at the end of their useful life. An emergency generator powers lift stations when power from PG&E is interrupted or shutdown. The automatic transfer switch senses when PG&E power is interrupted and causes the emergency generator to turn on.

The 48 lift stations pump sewage to receiving manholes at higher elevations. Emergency generators are located at EMID’s 14 major lift stations. Without emergency generators, in the event of a power outage, lift stations could fill with sewage and possibly overflow. This project addresses replacing the emergency generators and automatic transfer switches at Lift Stations 10, 12, 14, 15, 16, 29, 43 and 59 and the emergency generator only at Lift Stations 22 and 26. Staff is in the process of reviewing proposals for Professional Engineering services. Design is anticipated to commence following selection of a design firm.

Project Timeline:

Design: FY 2022-2023
Construction: FY 2023-2024
35 Attachment 1
FY 2022-23 Capital Improvement Program Page 18 2/14/2022 16:52 Projects Completed but Not Yet Closed in FY 2021-2022
(CIP 301-692, Budget $525,000) Park Infrastructure Improvements (2019-2020) This project originally consisted of Scope of Work elements 1-4 below, plus re-landscaping at City Hall, and had an approved budget of $1,175,000. On March 1, 2021, the City Council adopted Resolution No. 2021- 25 authorizing (1) the elimination of re-landscaping at City Hall; (2) adding repairs to the Sea Cloud Park Substation (Item #5 below); and (3) reducing the budget to $525,000.

The currently approved scope of work is comprised of the following elements:

1. Fencing at Catamaran Park Boardwalk. Installation of fencing at Catamaran Park on the water edge of the boardwalk to keep geese out of the park and pedestrians and bicyclists on the boardwalk. This element is complete.

2. Central Irrigation System Upgrade. Replacement of the Park System Central Irrigation System to meet current requirements by implementing water conservation software and hardware. The use of both local and cloud-based data will allow staff to adjust watering based on environmental factors. Construction is anticipated to be complete in Spring 2021.

3. Irrigation Pumps Upgrade. Replacement of irrigation pumps at Sea Cloud, Boothbay, and Edgewater Parks with new pumps that utilize smart technology to distribute water efficiently and effectively to planting materials. Construction is anticipated to be complete in Spring 2021.

4. Edgewater Boulevard Tree Removal and Re-Landscaping. Edgewater Boulevard median trees were replaced between Regulus Street and Beach Park Blvd with trees that have root systems which are less destructive to the roadway pavement. This element is complete.

5. Sea Cloud Park Maintenance Substation Roof Repair and Dry Rot Remediation. This facility houses (1) maintenance equipment that is used to maintain Sea Cloud, Gateshead, Port Royal, and Shorebird Parks, (2) a radio repeater station for the Foster City Police Department; and (3) an office space for field personnel. Staff assessed the condition of the facility, which was built in 1985, and observed extensive dry rot damage to the wood framing and wood roof header beyond staff’s ability to repair. The project consists of removal and replacement of portions of the roof and repair and/or replacement of portions of the structural wood framing and exterior siding. This element will be undertaken in Summer/Fall 2021 to take advantage of weather conditions.

This project is anticipated to be closed out in Winter 2021/Spring 2022 when all project elements are complete.

Project Timeline:

Design: Complete
Construction: Ongoing
36 Attachment 1
FY 2022-23 Capital Improvement Program Page 19 2/14/2022 16:52

THE CAPITAL IMPROVEMENT PROJECT BUDGETING PROCESS
As part of the City’s Annual Budget and Five Year Financial Plan process, the City prepares a Five Year Capital Improvement Project Program. A Capital Improvement Program consisting of several Capital Improvement Projects (CIP) is a plan for capital expenditures to provide for the acquisition, expansion or rehabilitation of an element of the City's physical plant to be incurred over a fixed period of several future years. Examples of such projects include:
•Street pavement projects
•City facilities construction / refurbishment
•Park infrastructure improvements (e.g., paving basketball courts, walkway construction or rehabilitation) •Water valve or pipe replacement
•Sewer Lift Station refurbishment
Because the costs of such improvements are usually significant, the City prepares a Five Year Capital Improvement Project Program so it can anticipate future costs and funding strategies for projects.

CIP Planning Process
Identifying CIP Projects
Throughout the fiscal year, City staff members continually monitor the functional status and performance of all of the City’s infrastructure. Maintenance activities supporting City infrastructure are documented and analyzed to determine if rehabilitation or replacement is necessary. In addition, throughout the year, policy direction from the City Council may be received to construct, enhance or rehabilitate City facilities. Staff makes note of these projects and begins to define the scope, nature and extent of projects as may be required.

In January of each year, under the direction of the City Manager, staff members assemble to kick-off the Five Year CIP planning process. Updates on CIP projects currently underway are prepared for City Council review in a February study session. Existing projects on the previous year’s Five Year CIP Plan are reviewed and updated. Staff also begins the process of formally identifying, for consideration by the City Council, any new CIP’s which were not on the list in the previous year.

Cost Estimates
Over the next few months, staff develops a draft CIP Plan. Upon identifying the scope and nature of each project, staff begins to prepare cost estimates of the projects. Projects which come up within the next 1-2 years have detailed engineers’ cost estimates prepared for purposes of determining the total costs of the projects. Projects which are 3-5 years out have less detailed cost estimates prepared, but they are sufficient in detail to give an overall order-of-magnitude cost estimate for planning purposes. This is performed for both newly identified projects and projects that are being updated from the previous year’s Five Year CIP Plan.

The City builds in an inflationary factor for cost estimates that are 2-5 years out. Inflationary factors can range anywhere from 2% to 10% per year. Assumptions are made based upon the historical trends and future expectations of raw materials and labor costs for projects. For example, projects that have significant 37 Attachment 1
FY 2022-23 Capital Improvement Program Page 20 2/14/2022 16:52 amounts of steel or oil products may have a high inflationary factor due to the price increases experienced and forecasted for those raw materials. On the other hand, projects which entail dirt and sod may yield lower inflationary factors.

Cost estimates also include contingency factors that can range from 10% to 25% based upon the historical experience of similar projects and the relative uncertainty with respect to the project itself. For example, a construction project built upon ground that is suspected to have hazardous materials may yield a higher contingency factor than a relatively simple replacement of walkways in a park. Staff exercises significant judgment based upon its professional experience in determining both inflationary and contingency factors.

Cost Components
Staff develops separate cost components for the design phase and the construction phase of a project, where necessary. For larger projects, the construction phase may also be split into separate components for project identification and manageability. In this way, the costs can be identified based upon the timing for each phase of the project. Cost estimates are then prepared and time-activated based upon each component of the project, as described above.

Funding Sources
Once the costs have been identified and projected, a financial analysis is prepared to determine whether or not the projects can be funded. Consideration is given to a variety of sources of funds including:
• Grant funds
• Revenues dedicated for such purposes (e.g., Measure A funds for street improvements) • Park In-lieu fees
• Water and Wastewater revenue rate projections
• Interest earnings
• Existing undesignated funds
Development of Five Year Plan
Funding sources are then compared to project cost estimates to develop the Five Year CIP Plan. The timing of the various projects is taken into consideration given the status of the existing infrastructure, risk management considerations, Council Policy Calendar initiatives, bidding environment, and available funding.

Once the draft plan is created, it is presented to the City Council at a Study Session that is typically held in late March. Council then provides direction on each of the projects within the plan and any changes are incorporated into a revised Five Year CIP Plan. In April, the Planning Commission reviews the proposed Capital Improvement Program for consistency with the General Plan. Any updates requiring further discussion are provided once again to the City Council at its May Budget Study Session.

The Council then holds a Public Hearing on the budget, which includes the Five Year CIP Plan, normally on the first Monday in June. Subject to any public testimony and final Council direction, the final Five Year CIP Plan is prepared, and the project costs associated with any projects which are funded in the next fiscal year are appropriated by the City Council as part of the adoption of the Annual Budget. 38 FY 2022-23 Capital Improvement Program Page 21 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-01 (CIP 301-677)
LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (FY 2017-2018) Project Category: C
Project Description:

The project addresses water infiltration from the exterior of the Library building into the Library building interior. The infiltration is most likely due to the failure of joint sealant at the exterior wall/foundation joint and the earth mounded against the exterior wall above that joint. Buildings are typically designed with a minimum of 6 inches of clearance between that joint and the top of earth/landscaping. Addressing the water infiltration problem includes removing earth around the building, sealing the wall, and installing wall drain and drainpipes.

Water intrusion has been significantly addressed by removing soil from around the southwest wall of the building, however, some sealing and additional grading is advised and the area around the building will require re-landscaping. In addition, the roots of the trees adjacent to the north wall of the library have damaged the building which has contributed to the water intrusion. These trees will be removed and replaced with a less intrusive species. In addition to re-landscaping, new sidewalk on the north-side of Civic Center Drive will be constructed to connect to the sidewalk that is adjacent to the Library on Shell Boulevard.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2023-2024
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $200,000 $0 $0 $0 $200,000
Total $0 $200,000 $0 $0 $0 $200,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $168,800 $0 $0 $0 $26,100 $194,900 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $5,100 $0 $0 $0 $5,100
Total $0 $173,900 $0 $0 $0 $26,100 $200,000
39 FY 2022-23 Capital Improvement Program Page 22 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-02 (CIP 301-685)
HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018-2019)
Project Category: A
Project Description:

The project addresses HVAC improvements in the Corporation Yard Administration Building, City Hall including the space occupied by the San Mateo Consolidated Fire Department, and the Police Station.

The project combines and consolidates the following projects: (1) previously approved Corporation Yard HVAC Replacements (2018-2019); (2) Government Center HVAC Replacement (2021-2022) identified in the FY 2020-2021 Annual Budget. Approximately half of the 55 variable air vent (VAV’s) have been previously replaced. This project will replace the remaining half; and three (3) items of remaining work in the previously funded project for HVAC improvements in the Police Station.

Combining the HVAC improvements in multiple buildings into a single construction contract reduces the administrative burden on staff and allows for project delivery efficiencies. In the future, HVAC improvement in these buildings may continue to be done under a single contract on a regular basis. $800,000 in funding is available in the Building Maintenance Fund for this project. (City Hall HVAC (RTU1/2): $525,000; Fire Station/City Hall HVAC (RTU3): $275,000).

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2023-2024
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $860,000 $0 $0 $0 $0 $860,000
Building Maintenance Fund $800,000 $0 $0 $0 $0 $800,000 Total $1,660,000 $0 $0 $0 $0 $1,660,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $1,443,500 $0 $0 $0 $0 $216,500 $1,660,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $1,443,500 $0 $0 $0 $0 $216,500 $1,660,000
40 FY 2022-23 Capital Improvement Program Page 23 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-03 (CIP 301-700)
FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022)
Project Category: A
Project Description:

The City has an unleaded fuel system and a diesel fuel system located in the Corporation Yard. The unleaded fuel system provides fuel for the vehicles and equipment of the City and Estero Municipal Improvement District (EMID). The diesel fuel system provides fuel to the vehicles, equipment, the lagoon pump engines, and the emergency generator for the Corporation Yard and Lift Station 59. The diesel fuel system also stores fuel for the emergency generators at EMID’s 48 lift stations. Fuel is trucked to lift stations as needed. These systems also have the potential to provide fuel to the San Mateo Consolidated Fire Department in emergency situations.

There are four existing fuel systems that are at the end of their useful life at the following locations:

1. Two – 10,000 gallon underground storage tanks (UGSTs), holding unleaded gas for City vehicles with two fuel dispensers located at the Corporation Yard near Lincoln Centre Drive and installed in the early 1990’s.

2. Two – 5,000 gallon above ground storage tanks (AGSTs) in a covered, concrete vault immediately adjacent to and west of the lagoon pump station building, which provide diesel fuel for vehicles and equipment via a single fuel dispenser and for the day tank inside the pump station, also installed in the early 1990’s.

3. One 210-gallon day tank for diesel fuel, installed in the early 1960’s located inside the lagoon pump station building, which provides fuel to the lagoon pump engines and the Corporation Yard emergency generator and Lift Station 59.

4. One underground storage tank that holds diesel fuel for the emergency generator at Lift Station 29.

Staff identified the need to replace the fuel systems due to safety, environmental, and regulatory compliance concerns. In addition, replacement parts for the dispensers are not readily available as the dispenser manufacturer is no longer in business, and the current Petro Vend fuel control software is no longer supported. Furthermore, SB445, requires the permanent closure of single walled underground storage tanks by December 31, 2025.

The project scope includes (1) removal and replacement of the unleaded and diesel fuel systems and tanks at the Corporation Yard; (2) replacements of all or part (dispensers, electrical, software) of the unleaded and diesel fuel systems; and (3) replacement of the day tank in the lagoon pump house.

A contract was awarded to Tait Environmental Services, Inc. on February 11, 2021, in the amount of $44,527 to perform an assessment of the City’s fuel systems and provide replacement and rehabilitation 41 FY 2022-23 Capital Improvement Program Page 24 2/14/2022 16:52 alternatives, and address permitting and soil remediation. A technical memorandum has been developed outlining recommendations for improvements including construction cost estimates. Based on the findings, an additional $2.5 million is requested to fund construction. Design is anticipated to begin in spring, followed by construction in FY 2023-2024.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2023-2024
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $1,250,000 $0 $0 $0 $0 $1,250,000
CIP - Water $625,000 $0 $0 $0 $0 $625,000
CIP - Wastewater $625,000 $0 $0 $0 $0 $625,000
Total $2,500,000 $0 $0 $0 $0 $2,500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $2,173,900 $0 $0 $0 $0 $326,100 $2,500,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $2,173,900 $0 $0 $0 $0 $326,100 $2,500,000
42 FY 2022-23 Capital Improvement Program Page 25 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-04 (NEW CIP)
GOVERNMENT CENTER REHABILITATION (FY 2022-2023)
Project Category: B
Project Description:

This project will improve the exterior and interior of the City Hall building (610 Foster City Boulevard). The interior renovation consists of office partition modifications, and supplemental HVAC and heating alterations to support the new interior office configurations. The exterior renovation consists of improvements to the building exterior and modifications to the fountains and water features.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2024-2025
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $200,000 $500,000 $0 $0 $0 $700,000
Total $200,000 $500,000 $0 $0 $0 $700,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $173,900 $422,100 $0 $0 $0 $91,300 $687,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $12,700 $0 $0 $0 $12,700
Total $173,900 $434,800 $0 $0 $0 $91,300 $700,000
43 FY 2022-23 Capital Improvement Program Page 26 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-05 (NEW CIP)
INSTALL REAR SECURITY GATES (FY 2022-2023)
Project Category: C
Project Description:

When the Government Center was constructed, signage was placed at the access points to the parking lot behind City Hall, the Police Station and the Fire Station to indicate that access was for authorized vehicles only. At that time, the possibility of future gate installation was considered likely.

This project was originally scheduled for Fiscal Year 2018-2019, but was pushed back as the adjacent 15-acre site was developed and then the project was closed in Fiscal Year 2021-2022 due to revenue impacts of the Covid-19 pandemic. However, consistently over the years and in increasing volumes, staff has observed general public pedestrian and vehicle users accessing the driveway. With the occupancy of the 15-acres, even more throughway access has been observed.

Security of this area is important for a number of reasons. Most significantly, pedestrians and unauthorized vehicles present a hazard to themselves and to public safety vehicles that are quickly departing the stations. In addition, this area is designated for parking for both City vehicles and 24-hour personnel that can be the targets of vandalism or theft of sensitive and expensive equipment.

This project includes purchase and installation of the gates, loop detectors, UL-required safety devices and local controls as well as electrical and concrete work required to facilitate installation, which could include curb modifications, center island construction and trenching/back filling for power and control wiring.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2022-2023

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $500,000 $0 $0 $0 $0 $500,000
Total $500,000 $0 $0 $0 $0 $500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $434,800 $0 $0 $0 $0 $65,200 $500,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $434,800 $0 $0 $0 $0 $65,200 $500,000
44 FY 2022-23 Capital Improvement Program Page 27 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
BD-06 (NEW CIP)
RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022-2023)
Project Category: A
Project Description:

This project addresses replacing essential elevator components in elevators in City buildings. The components are beyond their useful life and are experiencing an increasing number of failures. The replacement parts for the existing elevator components are no longer produced; therefore, a more extensive renovation of the elevators is necessary, meaning that the existing components will be replaced with new and updated components.

The City Hall elevator work is scheduled to commence in FY 2021-2022. The other elevators to be addressed by this project are located in the Fire Station, Community Center and Corporation Yard Administration Building.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY2022-2023
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $800,000 $0 $0 $0 $0 $800,000
Total $800,000 $0 $0 $0 $0 $800,000
Expenditures Categories 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 15%
Contingency Total
Estimated Project Costs $695,700 $0 $0 $0 $0 $104,300 $800,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $695,700 $0 $0 $0 $0 $104,300 $800,000
45 FY 2022-23 Capital Improvement Program Page 28 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-01 (NEW CIP)
SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022-2023)
Project Category: B
Project Description:

The synthetic turf surface at Sea Cloud Park S-4 (Soccer Field No. 4) was installed in FY 2012-2013 and is scheduled for replacement in FY 2022-2023. The project consists of replacing the existing field’s synthetic turf surface and repairing the base material, as required, to eliminate depressions.

The City has an agreement with the State of California Department of Parks and Recreation to receive $198,455 in Proposition 68 Per Capita Grant funds for this project. Because this is a reimbursement grant, the full cost of the project is budgeted with CIP-City funds. After the work is completed, grant funds will be reimbursed to the City.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2022-2023
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $800,000 $0 $0 $0 $0 $800,000
Total $800,000 $0 $0 $0 $0 $800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $695,650 $0 $0 $0 $0 $104,350 $800,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $695,650 $0 $0 $0 $0 $104,350 $800,000
46 FY 2022-23 Capital Improvement Program Page 29 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-02 (NEW CIP)
EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (FY 2023-2024) Project Category: B
Project Description:

The synthetic turf surface at Edgewater Park Softball and Soccer Fields was installed in FY 2013-2014 and is scheduled for replacement in FY 2023-2024. The project consists of replacing the existing field's synthetic turf surface and repairing the base material, as required, to eliminate depressions.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2023-2024

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $800,000 $0 $0 $0 $800,000
Total $0 $800,000 $0 $0 $0 $800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $675,400 $0 $0 $0 $104,300 $779,700 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $20,300 $0 $0 $0 $20,300
Total $0 $695,700 $0 $0 $0 $104,300 $800,000
47 FY 2022-23 Capital Improvement Program Page 30 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-03 (NEW CIP)
EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (FY 2023-2024) Project Category: C
Project Description:

Foster City has multiple median islands that are outdated and do not irrigate efficiently. Over time, the approach to grading, planting, and maintaining median islands has changed as the desire to conserve resources has increased. Over that same time, irrigation products and systems have also improved efficiency. In addition, landscape plantings need to be replaced as they age out over time.

This renovation project will refresh the plantings and improve the efficiency in the use of water and labor to maintain the systems on the East Hillsdale Boulevard median between Shell Boulevard and Foster City Boulevard and the Foster City Boulevard median from East Hillsdale Boulevard to Balclutha Drive.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2023-2024

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $500,000 $0 $0 $0 $500,000
Total $0 $500,000 $0 $0 $0 $500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $441,300 $0 $0 $0 $45,500 $486,800 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $13,200 $0 $0 $0 $13,200
Total $0 $454,500 $0 $0 $0 $45,500 $500,000
48 FY 2022-23 Capital Improvement Program Page 31 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-04 (NEW CIP)
INSTALL NEW AMPHITHEATER SHADE STRUCTURE (FY 2024-2025) Project Category: C
Project Description:

Leo J. Ryan Park is a "destination" park that hosts numerous special events and festivals throughout the year. One of the most popular amenities of the park is the amphitheater, which is home to summer concerts, private rentals, special events, and recreational classes. The current configuration leaves park users exposed to direct sunlight in the designated seating area during daytime use. The addition of an attractive shade structure will make the amphitheater space even more appealing by providing users with protection from the elements.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2024-2025
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $900,000 $0 $0 $900,000
Total $0 $0 $900,000 $0 $0 $900,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $0 $738,300 $0 $0 $117,400 $855,700 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $44,300 $0 $0 $44,300
Total $0 $0 $782,600 $0 $0 $117,400 $900,000
49 FY 2022-23 Capital Improvement Program Page 32 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-05 (NEW CIP)
BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (FY 2024-2025) Project Category: B
Boothbay Park is a “destination” park that draws users for a wide variety of activities including picnicking, sports and free play. This renovation project includes the installation of a “Family Playground” similar to Palo Alto's Magical Bridge Playground that is accessible for users of all ages. It also provides for picnic site improvements, including the addition of 2-3 additional reservable picnic areas (to make a total of 3-4) that have covered seating, barbecue space, and open passive space.

This renovation will elevate Boothbay Park as an inclusive, multi-generational, multi-cultural space for all users within the parks system. Partial funding is available from the Park-In-Lieu Fund and the Equipment Replacement Fund as shown in the funding table, with the remainder coming from the General Fund.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2025-2026
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $1,050,000 $4,840,000 $0 $5,890,000
Equipment Replacement Fund $0 $0 $0 $110,000 $0 $110,000 Park-In-Lieu $0 $0 $0 $2,050,000 $0 $2,050,000
Total $0 $0 $1,050,000 $7,000,000 $0 $8,050,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 20%
Contingency Total
Estimated Project Costs $0 $0 $825,500 $5,351,700 $0 $1,341,600 $7,518,800 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $49,500 $481,700 $0 $531,200 Total $0 $0 $875,000 $5,833,400 $0 $1,341,600 $8,050,000 50 FY 2022-23 Capital Improvement Program Page 33 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-06 (NEW CIP)
DOG PARK SYNTHETIC TURF REPLACEMENT (FY 2025-2026)
Project Category: B
Project Description:

The synthetic turf inside the dog park requires replacement every five to seven years due to the volume of high impact traffic it receives. This project consists of removing and replacing approximately 10,000 square feet of existing synthetic turf. Prior to installation of the new turf, the base material will be repaired, as required, to eliminate depressions and the underlying drainage system will be replaced and upgraded to ensure proper treatment of site run-off.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2025-2026

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $500,000 $0 $500,000
Total $0 $0 $0 $500,000 $0 $500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $0 $417,000 $0 $45,500 $462,500 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $37,500 $0 $37,500
Total $0 $0 $0 $454,500 $0 $45,500 $500,000
51 FY 2022-23 Capital Improvement Program Page 34 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-07 (NEW CIP)
CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (FY 2026-2027) Project Category: B
Project Description:

The synthetic turf surfaces at Catamaran and Sea Cloud S3 were installed in FY 2016-2017 and are scheduled for replacement in FY 2026-2027. The project consists of replacing the existing synthetic turf field surfaces and repairing the base material, as required, to eliminate depressions.

Estimated Project Schedule:

Design: FY 2026-2027
Construction: FY 2026-2027
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $0 $1,248,000 $1,248,000
Total $0 $0 $0 $0 $1,248,000 $1,248,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $0 $0 $1,013,000 $113,400 $1,126,400 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $121,600 $121,600
Total $0 $0 $0 $0 $1,134,600 $113,400 $1,248,000

52 FY 2022-23 Capital Improvement Program Page 35 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
PK-08 (NEW CIP)
AMPHITHEATER SYNTHETIC TURF RESURFACING (FY 2026-2027)
Project Category: C
Project Description:

The synthetic turf surfaces at the amphitheater located at Leo J. Ryan Park were installed in FY 2017-2018 and are scheduled for replacement in FY 2026-2027. The project consists of replacing the existing synthetic turf field surfaces and repairing the base material, as required, to eliminate depressions.

Estimated Project Schedule:

Design: FY 2026-2027
Construction: FY 2026-2027

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $0 $120,000 $120,000
Total $0 $0 $0 $0 $120,000 $120,000
Expenditures Categories 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 10%
Contingency Total
Estimated Project Costs $0 $0 $0 $0 $97,400 $10,900 $108,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $11,700 $11,700
Total $0 $0 $0 $0 $109,100 $10,900 $120,000
53 FY 2022-23 Capital Improvement Program Page 36 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-01 (CIP 301-698)
TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021)
Project Category: A
Project Description:

The City’s traffic signal system was evaluated as part of the Bicycle, Pedestrian, and Intersection Evaluation Study (CIP 301-664). This part of the study focused on inventory of the existing traffic signal infrastructure network and identified opportunities to improve efficiency through either equipment or operations enhancements. This project is built upon recommendations from CIP 301-664 and will include the following tasks for design and construction.

1. Citywide Communications Upgrade
The City’s existing traffic signal communications network is in need of an upgrade to help modernize its infrastructure. The current system operates over twisted-copper pair cables using 9,600-baud modems. The communications upgrade will bring the City’s network to current standards, which will allow more flexibility with traffic operations enhancements such as improving traffic flow along the East Hillsdale Boulevard, Foster City Boulevard, and Edgewater Boulevard corridors. Upgrade options may include Ethernet over copper upgrade with some cellular improvements, an upgrade to fiber optic cables to maximize broadband capabilities, or a hybrid approach.

2. Traffic Signal Field Hardware Upgrade
• Vehicle & Pedestrian Signal Heads Replacement
• Accessible Pedestrian Signals (APS) Replacement
• Traffic Signal Cabinets Upgrades and retrofits onto existing cabinet foundations

3. Traffic Signal Controllers Replacement
The traffic signal controller is considered the “brain” of the signalized intersection and processes detection inputs from the field and sends out signals to turn on and off the traffic signal indications.

These field units communicate with the Central Computer System located in the Public Works Engineering office. The City uses a modern controller from Trafficware but the field hardware is reaching the end of its useful life.

4. Advanced Traffic Management System (ATMS) – Central Computer System Upgrade This component communicates to the traffic signal controllers and stores data for traffic signal timing development. A new system will provide an enhanced user interface.

Funding for the design and construction of the traffic signal system upgrades in this project will be provided by a combination of City CIP and Measure W funds. Total funding in excess of $8 million will be required to implement and fully fund the design and construction of the traffic signal system upgrades. The project 54 FY 2022-23 Capital Improvement Program Page 37 2/14/2022 16:52 will be deferred until FY 2025-2026 to allow for cash reserves from non-General Fund funding sources to accumulate and lessen the burden on the General Fund.

The City needs to consider how best to upgrade its network and potentially introduce enhancement of additional City services. Due to the complexity of the project, a technical memorandum will be prepared by a professional traffic engineering consultant, that will compare the various upgrade alternatives and associated costs, provide recommendations for the preferred system based on the City’s current and future needs, recommend a phasing plan for design and construction of the improvements, and prepare a schedule for implementation.

Estimated Project Schedule:

Technical Memorandum: FY 2025-2026
Design: FY 2026-2027
Construction: FY 2028-2029
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $6,000,000 $0 $6,000,000
SB1 $0 $0 $0 $1,500,000 $0 $1,500,000
Measure W $475,000 $100,000 $1,000,000 $325,000 $0 $1,900,000 Total $475,000 $100,000 $1,000,000 $7,825,000 $0 $9,400,000 Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $431,800 $88,300 $857,600 $6,526,300 $0 $854,500 $8,758,500 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $2,600 $51,500 $587,400 $0 $641,500 Total $431,800 $90,900 $909,100 $7,113,700 $0 $854,500 $9,400,000 55 FY 2022-23 Capital Improvement Program Page 38 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-02 (CIP 301-703)
STREET REHABILITATION (FY 2021-2022)
Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand its pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost- effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate.

Based on the 2018 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

Federal and state transportation grant funding is used when available. Future multi-year funding is proposed to assure availability of local matching funds to maximize grant eligibilities. Funding for the local share of the project will be provided by Measure A, Measure M, Gas Tax, SB 1, and/or Measure W.

The design and construction of the project will be combined with the Park Pathway Restoration Project (CIP 301-702) which addresses needed repairs to asphalt pathways within various parks. Combining the projects will improve bid pricing and allow for project delivery efficiencies. Funding of the two projects will be tracked separately.

Estimated Project Schedule:

Design: FY 2022-2023
Construction: FY 2023-2024
56 FY 2022-23 Capital Improvement Program Page 39 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total Measure A $1,500,000 $0 $0 $0 $0 $1,500,000
Total $1,500,000 $0 $0 $0 $0 $1,500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $1,363,600 $0 $0 $0 $0 $136,400 $1,500,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $1,363,600 $0 $0 $0 $0 $136,400 $1,500,000
57 FY 2022-23 Capital Improvement Program Page 40 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-03 (NEW CIP)
SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (FY 2023-2024) Project Category: B
Project Description:

This project addresses deficiencies in Bicentennial, Foster City Boulevard, Rainbow, and Shell Boulevard Bridges. Caltrans performs inspections of the above water bridge elements every two years and the underwater elements every five years and reports its findings to the City. The project will address deficiencies identified in the Caltrans inspection documents and any deficiencies identified by a consultant engineering firm working directly for the City. The consultant engineering work may include dive inspections.

As no addressable deficiencies have been identified in Caltrans underwater inspections, the project budget does not include funds to repair underwater bridge elements. Additional funding may be requested for the design and construction of underwater bridge improvements, if needed.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2024-2025
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total SB1 $0 $400,000 $450,000 $0 $0 $850,000
Total $0 $400,000 $450,000 $0 $0 $850,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $353,000 $385,900 $0 $0 $77,300 $816,200 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $10,600 $23,200 $0 $0 $33,800
Total $0 $363,600 $409,100 $0 $0 $77,300 $850,000
58 FY 2022-23 Capital Improvement Program Page 41 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-04 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2023-2024) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets.

To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P- TAP) provides the City with various resources to better understand their pavement condition including the PMP.

Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost-effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate.

As part of P-TAP, the City also receives a budgetary need analysis report based the most recent pavement inspections, treatment costs, and various budget scenarios. The ideal pavement strategy is to increase the network average Pavement Condition Index (PCI) from 81 to 83 and maintain it over a five-year period. Based on the 2018 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

The design and construction of the project will include up to $300,000 in park pathway restorations, which address needed repairs to asphalt pathways within various parks. Resurfacing park pathways on an on-going basis keeps them in good repair, adds to the general surface life, and prevents major repairs or replacements from becoming necessary. Maintenance activities that keep the paths in good condition include removing and replacing failed and root-damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. Funding for the pathways portion of the project will be provided from the General Fund.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2024-2025

59 FY 2022-23 Capital Improvement Program Page 42 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $300,000 $0 $0 $0 $300,000
Measure A $0 $1,500,000 $0 $0 $0 $1,500,000
Total $0 $1,800,000 $0 $0 $0 $1,800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $1,588,700 $0 $0 $0 $163,600 $1,752,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $47,700 $0 $0 $0 $47,700
Total $0 $1,636,400 $0 $0 $0 $163,600 $1,800,000
60 FY 2022-23 Capital Improvement Program Page 43 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-05 (NEW CIP)
BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (FY 2024-2025) Project Category: C
Project Description:

In January 2018, Fehr & Peers performed a Bicycle, Pedestrian, and Intersection Evaluation Study (CIP 301-664) to help the City evaluate and determine the current traffic and transportation facilities and potential for improvements. As part of the study, Fehr & Peers performed an assessment for the four schools in Foster City to identify improvements to provide more comfortable bicycle and walking routes to school. A report was generated that describes citywide travel behavior trends for school trips and then provides a site assessment for each of the four Foster City schools, including cost estimates for suggested enhancements.

Some of the report recommendations have already been implemented.

The Bicycle and Pedestrian Improvements Project analyzes the remaining enhancements identified for each of the four Foster City schools to meet the City’s goals for pedestrian safety. The newly constructed Beach Park School would be included in the assessment. Some suggested enhancements include physical changes to the roadway, curb/gutter, or sidewalk, striping, and signage modifications. A consultant would review and analyze the assessment, perform field inspections, and perform additional traffic studies to develop project plans and specifications to implement the enhancements and the potential to implement complementary improvements such as green infrastructure (eg. stormwater treatment within curb extensions).

An RFP for assessment and design will be issued in 2024. Construction is anticipated in 2025.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2025-2026
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total Measure A $0 $0 $75,000 $250,000 $0 $325,000
Total $0 $0 $75,000 $250,000 $0 $325,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $64,300 $208,500 $0 $29,500 $302,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $3,900 $18,800 $0 $22,700
Total $0 $0 $68,200 $227,300 $0 $29,500 $325,000
61 FY 2022-23 Capital Improvement Program Page 44 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-06 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2024-2025) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand their pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost- effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate.

Based on the 2018 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

The design and construction of the project will include up to $300,000 in park pathway restorations, which address needed repairs to asphalt pathways within various parks. Resurfacing park pathways on an on- going basis keeps them in good repair, adds to the general surface life, and prevents major repairs or replacements from becoming necessary. Maintenance activities that keep the paths in good condition include removing and replacing failed and root-damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. Funding for the pathways portion of the project will be provided from the General Fund.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2025-2026
62 FY 2022-23 Capital Improvement Program Page 45 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $300,000 $0 $0 $300,000
Measure A $0 $0 $1,000,000 $0 $0 $1,000,000
Gas Tax 2103 $0 $0 $500,000 $0 $0 $500,000
Total $0 $0 $1,800,000 $0 $0 $1,800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $1,543,800 $0 $0 $163,600 $1,707,400 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $92,600 $0 $0 $92,600
Total $0 $0 $1,636,400 $0 $0 $163,600 $1,800,000
63 FY 2022-23 Capital Improvement Program Page 46 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-07 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2025-2026) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand their pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost- effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate.

Based on the 2018 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

The design and construction of the project will include up to $300,000 in park pathway restorations, which address needed repairs to asphalt pathways within various parks. Resurfacing park pathways on an on- going basis keeps them in good repair, adds to the general surface life, and prevents major repairs or replacements from becoming necessary. Maintenance activities that keep the paths in good condition include removing and replacing failed and root-damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. Funding for the pathways portion of the project will be provided from the General Fund.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027
64 FY 2022-23 Capital Improvement Program Page 47 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $300,000 $0 $300,000
Measure A $0 $0 $0 $500,000 $0 $500,000
Gas Tax 2103 $0 $0 $0 $500,000 $0 $500,000
Measure M $0 $0 $0 $300,000 $0 $300,000
SB1 $0 $0 $0 $200,000 $0 $200,000
Total $0 $0 $0 $1,800,000 $0 $1,800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $0 $1,501,300 $0 $163,600 $1,664,900 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $135,100 $0 $135,100
Total $0 $0 $0 $1,636,400 $0 $163,600 $1,800,000
65 FY 2022-23 Capital Improvement Program Page 48 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
ST-08 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2026-2027) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand their pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost- effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate.

Based on the 2018 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

The design and construction of the project will include up to $300,000 in park pathway restorations, which address needed repairs to asphalt pathways within various parks. Resurfacing park pathways on an on- going basis keeps them in good repair, adds to the general surface life, and prevents major repairs or replacements from becoming necessary. Maintenance activities that keep the paths in good condition include removing and replacing failed and root-damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. Funding for the pathways portion of the project will be provided from the General Fund.

Estimated Project Schedule:

Design: FY 2026-2027
Construction: FY 2027-2028

66 FY 2022-23 Capital Improvement Program Page 49 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $0 $0 $0 $300,000 $300,000
Measure A $0 $0 $0 $0 $800,000 $800,000
Gas Tax 2103 $0 $0 $0 $0 $200,000 $200,000
SB1 $0 $0 $0 $0 $500,000 $500,000
Total $0 $0 $0 $0 $1,800,000 $1,800,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 10%
Contingency Total
Estimated Project Costs $0 $0 $0 $0 $1,461,100 $163,600 $1,624,700 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $175,300 $175,300
Total $0 $0 $0 $0 $1,636,400 $163,600 $1,800,000
67 FY 2022-23 Capital Improvement Program Page 50 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
SW-01 (CIP 301-690)
SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022-2023) Project Category: A
Project Description:

The lagoon pump station located at the City/District’s Corporation Yard, houses two (2) engines/pumps used to pump lagoon water into the bay to control the water level in the interior lagoon. A seismic vulnerability assessment of the building by G&E Engineering systems, Inc. was completed in 2013. The report concluded that the building met the seismic code and recommended various improvements that included: (1) reinforce the door frame, (2) isolate the tidal channel walls from the building to prevent differential settlement, (3) install flexible connections to the underground utilities entering the building to allow movement during earthquake, and (4) secure equipment within the building to minimize damage during a seismic event.

Since the 2013 assessment was conducted, there have been various changes in requirements and standards for evaluating existing structures. On April 20, 2020 Murray Smith, Inc. was retained to update, evaluate, and validate the findings in the G&E report, and make recommendations for options for repair and improvement.

In addition, additional deterioration of the facilities has occurred. The report recommended that additional structural evaluation of the lagoon pump station building and the below water structures be performed based on current building code standards. This includes further structural investigation and analysis of the lagoon walkway, channels, trash rack, and foundation to determine potential structural deficiencies. As this is outside of the scope of this study, a new CIP-Lagoon Intake Structure and Pump Station Building Rehabilitation Project (FY 2022-2023) has been created to address an in depth evaluation of the building.

This project will address the following improvements identified in the G&E report and validated by Murray Smith:

1. Isolate the tidal channel walls from the building to stop and prevent differential settlement.

2. Install flexible connections onto the underground utilities entering the building to allow movement during earthquakes.

3. Secure equipment within the building to minimize damage during a seismic event.

In addition, this project will install a temporary walkway over the existing walkway which was identified by staff and Murray Smith as deteriorating, with spalling concrete and rusting reinforcing steel (re-bar). All or a portion of the walkway that extends over the water on the south side of the building will require permanent replacement which will be studied as part of the new CIP-Lagoon Intake Structure and Pump Station Building Rehabilitation Project (FY 2022-2023).

Estimated Project Schedule:

Design: FY 2021-2022
Construction: FY 2022-2023

68 FY 2022-23 Capital Improvement Program Page 51 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $150,000 $0 $0 $0 $0 $150,000
Total $150,000 $0 $0 $0 $0 $150,000
Expenditures Categories 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 15%
Contingency Total
Estimated Project Costs $130,400 $0 $0 $0 $0 $19,600 $150,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $130,400 $0 $0 $0 $0 $19,600 $150,000
69 FY 2022-23 Capital Improvement Program Page 52 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
SW-02 (NEW CIP)
LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (FY 2023-2024) Project Category: A
Project Description:

This project will address improvements at two locations supporting the operation of the lagoon system:

1. Replace the intake gates on the lagoon side of the intake structure near Wheel House Lane; and

2. Provide for above and below grade improvements to the lagoon pump station building at the City’s Corporation Yard.

Water from the San Francisco Bay flows through the intake structure located near the end of Wheel House Lane into the lagoon. In 2018, as part of CIP 301-629, the three (3) exterior gates on the Belmont Slough side of the lagoon intake structure were replaced. The interior gates were constructed in the early 1960’s and are starting to fail along with the concrete wall. These reinforced concrete structures are exposed to the salty water and air of the Bay, which causes the reinforcing steel to corrode. The corroding reinforcing steel causes concrete to spall.

The lagoon pump station located at the City/District’s Corporation Yard, houses two (2) engines/pumps used to pump lagoon water into the bay to control the water level in the interior lagoon. It was constructed in the early 1960’s and is one of the oldest City-owned buildings. Water flows through the culverts under the lagoon pump station building and is pumped into the Bay from the Lagoon Pump Station Building. In several locations, significant amounts of concrete have spalled away which adversely affects the structural integrity of certain elements of the facilities. In addition, numerous structural code changes have been adopted since the design of this building.

In a report prepared by Murray Smith, Inc. in May 2021, as part of CIP 690-Sesimic Improvements project, recommendations were made to perform a future in-depth evaluation of the building to include additional structural evaluation of the lagoon pump station building and the below water structures based on current building code standards. The recommendation included further structural investigation and analysis of the lagoon walkway, channels, trash rack, and foundation to determine potential structural deficiencies with the intent to replace.

This project will provide for a seismic analysis of the building including recommendations for structural improvements required to meet current standards. Based on the analysis, a construction budget will be identified, and any additional funding requests will be brought back to the City Council.

Estimated Project Schedule:

Technical Memorandum: FY 2023-2024

70 FY 2022-23 Capital Improvement Program Page 53 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $200,000 $0 $0 $0 $200,000
Total $0 $200,000 $0 $0 $0 $200,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 13%
Contingency Total
Estimated Project Costs $0 $173,900 $0 $0 $0 $26,100 $200,000 Inflation % — % — % — % — % — %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $0 $173,900 $0 $0 $0 $26,100 $200,000
71 FY 2022-23 Capital Improvement Program Page 54 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
SW-03 (NEW CIP)
ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (FY 2023-2024) Project Category: A
Project Description:

This project provides for the removal of 2 non-functioning lagoon pump engines, impellers, shafts, and associated plumbing that were abandoned in place when the two current pumps were installed in 2001, so that a third functioning lagoon pump may be installed.

Studies have shown that from 1974 to 2019 storms have become more severe due to climate change effects, resulting in more severe and frequent storms. This project will add a third pump to the existing lagoon pump station which would provide the City with the redundancy to reduce the risk of flooding should a failure occur to one of the two existing pumps during a severe storm and high tide condition.

The two existing lagoon pumps were replaced in 2001 and are 20 years old. Although the useful life is approximately 35 years, if one were to fail, it could take several weeks to repair. Adding a third pump would allow for uninterrupted operation, redundancy, staggered replacement of the lagoon pumps, and provide maximum protection against the potential for flooding and property damage.

Estimated Project Schedule:

Technical Memorandum: FY 2022-2023
Design: FY 2023-2024
Construction: FY 2024-2025
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - City $0 $2,000,000 $0 $0 $0 $2,000,000
Total $0 $2,000,000 $0 $0 $0 $2,000,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $1,688,500 $0 $0 $0 $260,800 $1,949,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $50,700 $0 $0 $0 $50,700
Total $0 $1,739,200 $0 $0 $0 $260,800 $2,000,000
72 FY 2022-23 Capital Improvement Program Page 55 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WA-01 (CIP 405-660)
WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020)
Project Category: A
Project Description:

Foster City’s water storage tanks provide emergency supply storage, as well as storage for peak use periods and firefighting needs. Three tanks are welded steel structures and are approximately 150 feet in diameter and 30 feet in height. The fourth tank is reinforced concrete.

On April 4, 2020, the District Board authorized the combining of the Water Tanks Improvements Project (which was comprised of CIPs 405-660, 405-670, and 405-688) with 405-687 Seismic Improvements at Water Booster Pump Station project; and renaming the project CIP (405-660) - Water Tank and Facilities Improvements Project.

The scope of work of the combined project consists of:

1.Remove and Recoat Water Tanks Project (formerly CIP 405-660) This project consists of refurbishing the 3 steel tanks by repairing corroded steel and applying new coating to the interior and exterior surfaces.

2. Water Quality Dosing and Tank Improvements Project (formerly CIP 405-670) Due to the most recent drought and required State mandated water use reductions, the District’s current water use is at 1990 levels. Due to the reduction in water consumption and reduced demand during the winter months (2-3 MG per day), water remains in the storage tanks for longer periods resulting in a drop in water quality.

To continue to maintain high water quality at the storage tanks without reducing water storage in the winter months, this project consists of the installation of water mixing devices inside the 3 steel tanks to prolong water quality within the tanks and system wide.

3.Seismic Improvements at Water Tanks 1, 2, and 3 Project (formerly CIP 405-688) A seismic vulnerability assessment performed by G&E Engineering Systems, Inc. in 2013 identified the need for various flexible couplings on the drainpipes of Tanks 1 & 2 to address seismic improvements needed. This project will address the recommendations in the 2013 report by seismically retrofitting the existing drainpipes or installing a new drainpipe at the side of the tanks.

4.CIP 405-687 - Seismic Improvements at Water Booster Pump Station Project A seismic vulnerability assessment of the Water Booster Pump Station completed in 2013 by G&E Engineering Systems, Inc. resulted in recommendations to improve the building. This project includes reinforcing the door frame of the roll-up door to prevent deformation during a seismic event and the installation of flexible connections on the underground utilities entering the building to allow differential movement during a seismic event.
73 FY 2022-23 Capital Improvement Program Page 56 2/14/2022 16:52 Funding in the amount of $2,500,000 was available in the project for CIP 405-660; funding in the amount of $250,000 was available in the project for CIP 405-670; and a budget request in the amount of $300,000 was approved as part of the FY19-20 budget for CIP 405-688, funding in the amount of $100,000 is available in the project for CIP 405-670 and $900,000 was added to the project in FY 2021-2022. The total combined project budget is $4,100,000.

On August 5, 2019, a contract was awarded to Murray Smith for professional engineering services for design and construction support. A Technical Memorandum summarizing the findings from the preliminary engineering assessment has been completed. The TM includes the recommended improvements for design and construction. The construction documents are 90% complete. The 90% construction cost estimate far exceeded the 50% construction cost estimate and an additional $4,000,000 is needed.

Construction is anticipated in Fall 2022.

Estimated Project Schedule:

Design: Ongoing
Construction: FY 2022-2023

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Water $1,600,000 $0 $0 $0 $0 $1,600,000
Total $1,600,000 $0 $0 $0 $0 $1,600,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $1,391,300 $0 $0 $0 $0 $208,700 $1,600,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $1,391,300 $0 $0 $0 $0 $208,700 $1,600,000
74 FY 2022-23 Capital Improvement Program Page 57 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WA-02 (CIP 405-704)
WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022) Project Category: A
Project Description:

The project is comprised of various smaller projects that were either identified as part of the Water Master Plan that was completed in 2020 or by the Maintenance Division during routine maintenance. This project supports the District’s ongoing program to maintain and upgrade the water system to improve reliability and minimize service interruptions.

The project is comprised of the following smaller projects:

1. Large Water Meter Replacements - The project addresses a. Testing the accuracy of large water meters (4" and larger); b. Replacing meters that are inaccurate and/or at the end of their useful life; and c. Replacing heavy older meter vault lids with spring-operated lids to allow for easier access.

This project complements work that has already been performed in concert with the Bay Area Water Supply & Conservation Agency (BAWSCA)'s Water Loss Management Program to identify water loss/revenue losses among the District’s largest water meters.

2. Water Valve Improvements - The project addresses replacing broken water valves (8 inches and larger) throughout the distribution system and the strategic installation of new valves to minimize interruptions to customer services during water valve and pipeline repairs. Valves that are not functioning properly are identified for replacement by the Maintenance Division during the fire hydrant flushing program.

3. Pipeline Extension at East Hillsdale Boulevard - The project addresses installing approximately 40 feet of 8-inch pipeline to loop a pipeline which is currently dead-ended. The project is identified in the Water System Master Plan.

4. Water Transmission Main Pipeline Condition Assessment Technical Memorandum - The technical memorandum will recommend one or more of the various pipeline inspection technologies to assess the condition of the District’s 24-inch cement mortar lined and coated steel transmission main and steel distribution system mains, and provide budget estimates for implementing the inspection technologies and provide recommendations for capital improvements projects based on the inspection results. The transmission system consists of pipelines (24” diameter) and large steel distribution system pipelines (16” and 18” diameter pipes).

Estimated Project Schedule:

Design: FY 2022-2023 through FY 2023-2024
Construction: FY 2021-2022 through FY 2023-2024
75 FY 2022-23 Capital Improvement Program Page 58 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Water $1,000,000 $1,000,000 $500,000 $500,000 $0 $3,000,000 Total $1,000,000 $1,000,000 $500,000 $500,000 $0 $3,000,000 Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $869,600 $844,300 $410,200 $398,900 $0 $391,200 $2,914,200 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $25,300 $24,600 $35,900 $0 $85,800 Total $869,600 $869,600 $434,800 $434,800 $0 $391,200 $3,000,000 76 FY 2022-23 Capital Improvement Program Page 59 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WA-03 (NEW CIP)
CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (FY 2023-2024) Project Category: A
Project Description:

This project will address water quality issues that Foster City experiences in winter months. This project provides for the design and construction of chlorine analyzers and automatic flushers throughout Foster City. EMID purchases water treated with a disinfectant agent (chloramine) from the SFPUC. Chloramine disinfection is more environmentally friendly but presents operational challenges for distribution system operators. If chloramine is allowed to remain in the distribution system for a lengthy period, the disinfectant can degrade, adversely affecting water quality.

Successful water conservation efforts over the past years have reduced water demand, and as a result, water is subject to “aging” in the distribution system. In the winter months, when water demands are low, and irrigation use is down, staff has observed chlorine residuals falling to actionable levels, forcing staff to flush hydrants to stimulate water circulation to increase the disinfectant levels in the water system, This project will install automatic flushers and chlorine analyzers at various key locations throughout the City. The chlorine analyzers will measure the level of disinfectant in the water in problem areas. At a specified threshold, the analyzers will trigger the automatic flushers to flush water through the system until the chlorine residuals are back to a safe level. The installation of chlorine analyzers and automatic flushers will save staff time in having to flush water mainlines manually, also saving the City funds in labor costs.

Estimated Project Schedule:

Design: FY 2023-2024
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Water $0 $650,000 $0 $0 $0 $650,000
Total $0 $650,000 $0 $0 $0 $650,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $548,800 $0 $0 $0 $84,700 $633,500 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $16,500 $0 $0 $0 $16,500
Total $0 $565,300 $0 $0 $0 $84,700 $650,000
77 FY 2022-23 Capital Improvement Program Page 60 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WA-04 (NEW CIP)
PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON EAST THIRD AVENUE (FY 2025- 2026)
Project Category: A
Project Description:

This project will improve water supply reliability and redundancy and minimize water service interruptions in a catastrophic seismic event. The District’s 24-inch water transmission main pipeline is the sole source of potable water for the City and is attached to the Seal Slough Bridge. Seal Slough Bridge was built in the 1930’s and is used as a pedway only. The bridge is aging and could fail in the event of an earthquake and with it, the District would lose its primary water supply.

As part of CIP 636-Water System Improvements and Valve Replacements Project, two 12-inch emergency water bypass connections, with isolation valves and fittings were constructed on the transmission main beyond the ends of the bridge to provide a means of restoring water service quickly in the event of the bridge and pipeline failure. The project includes the purchase of 1,250 feet of 12-inch temporary bypass piping that would be stored at the District’s Corporation Yard and assembled by staff quickly (within 1-2 days) in an emergency to restore flow until the transmission main could be repaired.

This project is a continuation of CIP 636, as it provides for the construction of a permanent bypass pipe to be attached to the adjacent bridge on East Third Avenue and joined at the second bypass connection that was constructed as part of CIP 636. The permanent bypass pipe would provide a redundant water supply immediately and increase efficiency and speed of response during an emergency.

Estimated Project Schedule:

Technical Memorandum: FY 2025-2026

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Water $0 $0 $0 $300,000 $0 $300,000
Total $0 $0 $0 $300,000 $0 $300,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $0 $0 $239,400 $0 $39,100 $278,500 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $21,500 $0 $21,500
Total $0 $0 $0 $260,900 $0 $39,100 $300,000
78 FY 2022-23 Capital Improvement Program Page 61 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WA-05 (NEW CIP)
COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (FY 2026-2027) Project Category: B
Project Description:

The project will address the application of coating on the 24-inch transmission main line attached to the Seal Slough Bridge. An inspection of the pipeline will be performed, followed by preparation of a technical memorandum recommending removal and coating alternatives, and regulatory permitting requirements, including cost estimates for the pipe preparation and coating application. Design and construction will follow.

The Foster City/EMID 24-inch water transmission main is attached to and runs the length of the Seal Slough Bridge. This steel line is exposed to the elements of the bay. Through the years of exposure to sun and saltwater air along the bay shore, the original protective coating is showing signs of age and corrosion and the pipeline requires recoating to prolong its life. This transmission line runs over the San Francisco Bay and will require procurement of regulatory permits for work over the waterway.

Estimated Project Schedule:

Assessment and Design: FY 2026-2027
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total Water Connection Fees $0 $0 $0 $0 $920,000 $920,000
Total $0 $0 $0 $0 $920,000 $920,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 Total Estimated Project Costs $0 $0 $0 $0 $714,300 $120,000 $834,300 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $85,700 $85,700
Total $0 $0 $0 $0 $800,000 $120,000 $920,000
79 FY 2022-23 Capital Improvement Program Page 62 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-01 (CIP 451-652)
WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016) Project Category: A
Project Description:

The Clean Water Program (CWP) includes capital improvements to the San Mateo Wastewater Treatment Plant (WWTP) and San Mateo’s sanitary sewer collection system necessary to replace aging infrastructure and meet regulatory requirements.

In accordance with the percentages of ownership of the WWTP established in the JPA (as lead agency, San Mateo owns approximately 75 percent and EMID owns approximately 25 percent), EMID is only responsible for the relevant work related to the Wastewater Treatment Plant Master Plan improvements.

The estimated share of the WWTP costs for EMID is approximately $153.02 million dollars. To date, $103,379,766 has been encumbered for this multi-year project. Approximately, an additional $49.6 million is anticipated over the next 5 years as shown in the funding table at the end of this Project Description.

Encumbered:

FY 2015-16 $5,931,000
FY 2016-17 $10,984,000
FY 2017-18 $12,345,628
FY 2018-19 $8,680,985
FY 2019-20 $4,563,622
FY 2020-21 $8,315,581
FY 2021-22 $52,558,950
$103,379,766
Anticipated:

FY 2022-2023 through FY 2026-27 $49,641,505
Total Project Budget: $153,021,271
In 2021 (year 7), the CWP focused on the construction phase for most of its projects to assist with full project delivery and execution of major improvement projects. Some notable accomplishments include the following:

WWTP Upgrade & Expansion Project
• Submitted the quarterly reports for Water Infrastructure Finance and Innovation Act (WIFIA) loan compliance.
• Completed an update of the WWTP operating cost forecast for the WIFIA loan period and for use in the City’s fiscal year planning and budgeting process. • Obtained the Phase 2 temporary construction easement (TCE) and permanent utility easement (PUE) from All-American Storage.
• HDR completed the 100% design for Title 22 Recycled Water on April 5. • City Manager approved noise exception permit on May 28 for stage 2 pile driving. 80 FY 2022-23 Capital Improvement Program Page 63 2/14/2022 16:52 • Trussell completed the draft Title 22 Disinfected Tertiary Recycled Water Engineering Report to meet regulatory requirements by the Division of Drinking Water. • Obtained San Mateo City Council approval for Cal Water to construct the 3rd Avenue water main extension to Detroit Drive site.
• PG&E issued letter acknowledging its responsibility for relocating its utilities from Detroit Drive at its own cost pursuant to their Franchise Agreement with the City and completed final design. • Prepared the Authority to Construct (ATC) revised application for Tier 4 Compliant engines and submitted to the Bay Area Air Quality Management District (BAAQMD). Public comment closed on Oct 18, 2021.
• Public Works approved the WWTP Final Parcel Map.
• The program has been put on the fundable list for an up to $137M loan from SRF. ◦Interest rate will depend on when it closes (planning for the end of 2022) GMP-1 (Site Preparation, Electrical and Storm Drain System Improvements for GMP3) • Installed SEMS (Service Entrance Meter Switchgear) platform, batteries, and gear. • Completed and tested the new Eductor Facility sewer manhole. • Completed the installation of new precast Southwest stormwater pump station.

GMP-2 (Foundations for GMP3)
• Completed pile dowels installation and repairs on Phase 1 piles. • Completed the installation of approximately 561 piles completing the entire pile installation for the new treatment facilities (approximately 1960 piles). Last pile driven on Sept 9, 2021.

GMP-3 (Nutrient Removal and Wet Weather Flow Management Upgrade and Expansion) • Began operation of two tower cranes.
• Completed backfill of elevator pit, of Area 51(Influent and Headworks) behind the walls and Area 80 (Administration Building).
• Continued formwork, rebar installation and concrete pours for the Membrane Bioreactor (MBR) equipment and electrical building walls, influent & headworks columns/blower room/laboratory deck, primary treatment slab and walls, BioActiflo slab and wall, and BNR slab. •Installed under-slab process drain piping and electrical in-slab embeds for Area 53/55 (BioActiFlo/Biological Nutrient Removal (BNR)); Area 80 (Administration Building); and Area 51 (Influent and Headworks).
• Completed the Staging Area 2 for Contractors employees to park (Anchor Road Open Passive Space).
• Placed approximately 12,000 cubic yards of the 32,000 cubic yards concrete. • Excavated for underground plumbing at Area 80 (Administration Building) and began installing underground plumbing.
• Continued maintaining groundwater drawdown, with minimal discharge to storm water system under NPDES permit being observed.
• Performed work associated with the West pipe corridor (yard piping). ◦Demolished and/or removed and separated HDPE and PVC piping from soil within the boundary of the planned West pipe corridor trench excavation ◦Continued excavating the North and South tie-in locations for the long-term temporary Mariner’s Island and Foster City force main piping.
◦Excavated the corridor and installed large bore pipe including sections of the two new 36” HDPE pipe.
• Potholing was continued in the East corridor to support upcoming yard piping activities in the area. 81 FY 2022-23 Capital Improvement Program Page 64 2/14/2022 16:52 Immediate Action Project Package 2
• Completed startup of Sludge Cake Pump 2.
• Completed Digester Piping Scope of Work and related As Built. • Completed Centrifuge Control Panel and Sludge Hopper Control Panel source testing. • Completed installation of Sludge Cake Pump No. 1 and initiated startup. • Completed negotiation with contractor for construction time extension / delay claim.

Immediate Action Project Package 3
• HDR submitted and Program team reviewed the 90% design documents. • Received a preliminary estimate for 90% Design of $9.4 million. Project Management is reviewing this estimate and reconciling cost to try to get closer to original budget of $6.7M.

Annual Major Components 6 + 23
• The project was awarded to Express Plumbing which began work on October 11, 2021.

Annual Major Components 20
• Task 1, related to the compressed natural gas to boiler tie-in, was cancelled after San Mateo City Council approved to decommission compressed natural gas at the WWTP. • It was decided that the scope of work for Task 2 (Sludge Heating Recirculation Piping Replacement) will be incorporated into the design for IAP3.

In 2022 (Year 8), the CWP will continue to focus on full project delivery and execution of major improvement projects. Key Year 8 program activities include the following:
• Program administration, program controls, economic management, document management, odor control support, oversight of 3rd party construction management teams, environmental permitting support, and public outreach.
• Project management, construction management, and inspection for the following projects:
◦Immediate Action Project 2
◦WWTP Upgrade and Expansion Project (GMPs 1, 2, & 3)
◦WWTP Annual Major Components Projects
◦Design for Immediate Action Project 3
Continue project management for the Construction Manager at Risk (CMAR) (Sundt). • Continue to pursue SRF funding.
• Issue additional bonds as needed.
• Continue public outreach as major construction gets underway.

Start-up and commissioning of new treatment facilities is targeted to be complete by August 2023, followed by the retrofit of existing facilities and commissioning of the integrated WWTP by June 2024.

Erler & Kalinowski, Inc. is providing technical support services for EMID. EMID Specific expenses, (such as EKI, and legal support) are included in the 10-year funding model and are being funded through the enterprise fund and not bond proceeds.

Estimated Project Schedule:

Design: Complete
Construction: Ongoing through FY 2024-2025
82 FY 2022-23 Capital Improvement Program Page 65 2/14/2022 16:52 Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $2,755,786 $4,514,252 $1,670,400 $467,860 $149,328 $9,557,626 Wastewater Notes & WIFIA
Loan $7,039,479 $0 $0 $0 $0 $7,039,479
State Revolving Fund
ProceProceProceeds
$29,989,399 $3,055,001 $0 $0 $0 $33,044,400
Total $39,784,664 $7,569,253 $1,670,400 $467,860 $149,328 $49,641,505 Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 Total Estimated Project Costs $39,784,664 $7,569,253 $1,670,400 $467,860 $149,328 $0 $49,641,505 Inflation % — % 0 % 0 % 0 % 0 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $39,784,664 $7,569,253 $1,670,400 $467,860 $149,328 $0 $49,641,505 83 FY 2022-23 Capital Improvement Program Page 66 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-02 (CIP 455-696)
SANITARY SEWER SYSTEM IMPROVEMENTS (FY 2020-2021)
Project Category: A
Project Description:

This project is a continuation of the District’s on-going program to assess the condition and perform repairs to the sanitary sewer collection system. Repairs are identified based on the video inspections performed by the District’s Public Works Maintenance staff.

The scope of the project includes the replacement, rehabilitation, reconstruction, and new installation of sanitary sewer pipelines, and manholes at three (3) locations within the District.

The work was bid as options in the completed CIP 455-611 Sanitary Sewer System Improvements Project; however, the options were not exercised due to budgetary constraints.

On January 4, 2021, the EMID Board of Directors adopted Resolution No. 3553 authorizing an agreement with HydroScience Engineers, Inc. to prepare construction contract documents and provide construction support services. . Design is 90% complete, and the 90% construction cost estimate exceeds the current budget requiring an additional $400,000. Construction is anticipated in summer 2023.

Estimated Project Schedule:

Design: 2020-2021
Construction: FY 2023-2024
Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $0 $400,000 $0 $0 $0 $400,000
Total $0 $400,000 $0 $0 $0 $400,000
Expenditures Categories 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 15%
Contingency Total
Estimated Project Costs $0 $337,700 $0 $0 $0 $52,200 $389,900 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $10,100 $0 $0 $0 $10,100
Total $0 $347,800 $0 $0 $0 $52,200 $400,000
84 FY 2022-23 Capital Improvement Program Page 67 2/14/2022 16:52

CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-03 (NEW CIP)
SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (FY 2022-2023) Project Category: A
Project Description:

During a routine maintenance inspection, a leak was discovered on the 16” steel force main attached to the Shell Boulevard Bridge. A small crack was identified on the top side of the pipe. Express Plumbing, Inc. (EPS) was hired to perform a temporary emergency repair. While prepping the pipe to install a full circle repair clamp to stop the leak, the crack deteriorated further creating a 12-inch diameter hole on the top side of the pipe. The repairs were completed in February 2021 and included the in-house replacement of the air release valve located on the force main at the high point on the bridge.

This force main was originally constructed in the 60’s. It is a critical facility which delivers over 500,000 gallons of sewage (approximately one quarter of the wastewater generated in the District) daily to the San Mateo Wastewater Treatment Plant. The localized failure of the pipe and air release valve is due to the corrosive environment of wastewater and repeated exposure to hydrogen sulfide gas. Other portions of this main may have similarly deteriorated and be vulnerable to failure.

This project provides for an assessment, design, and replacement/rehabilitation of the force main on Shell between Catamaran and Bounty Drive.

Estimated Project Schedule:

Assessment and Project Design: FY 2022-2023
Construction: FY 2022-2023

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $500,000 $0 $0 $0 $0 $500,000
Total $500,000 $0 $0 $0 $0 $500,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $434,800 $0 $0 $0 $0 $65,200 $500,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $0 $0
Total $434,800 $0 $0 $0 $0 $65,200 $500,000
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CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-04 (NEW CIP)
SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (FY 2023-2024) Project Category: A
Project Description:

The project is part of a multi-phase program started in 2000 to rehabilitate EMID's sanitary sewer lift stations. The lift station improvement projects take place every three to four years. The projects include preventative maintenance and upgrades to improve the reliability, durability, and sustainability of the lift stations. Lift stations in the District pump sewage from the low points in the collection system to manholes at higher elevations. The project addresses deficiencies at Lift Stations 11, 13, 29, and 42. Lift station improvements generally include repairing the interior wet wells; replacing critical components, and electrical improvements including installation of additional systems to remotely monitor and control the lift stations.

This project includes the removal of the single walled underground storage tank that holds diesel fuel for the emergency generator at Lift Station 29 in the Bank of America parking lot at the northeast corner of East Hillsdale Boulevard and Edgewater Boulevard.

Eight additional “hot spot” manhole replacement projects have been included for replacement. These manholes operate as force main collectors, receiving sewage flow from various lift stations and require replacement. During the condition assessment performed as part of the Wastewater Master Plan, Manholes 29-07, 18-01, 16-17, 14-02, 22-18, 22-19, 37-11, and 29-31 were witnessed to operate under turbulent conditions during force main discharge cycles. Replacement of these manholes and the intercepting piping will enhance station reliability and public safety.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2024-2025

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $0 $600,000 $6,700,000 $0 $0 $7,300,000 Total $0 $600,000 $6,700,000 $0 $0 $7,300,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $506,500 $5,496,300 $0 $0 $952,200 $6,955,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $15,200 $329,800 $0 $0 $345,000 Total $0 $521,700 $5,826,100 $0 $0 $952,200 $7,300,000
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CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-05 (NEW CIP)
SANITARY SEWER MANHOLE REPLACEMENTS (FY 2024-2025)
Project Category: A
Project Description:

The project is a continuation of the District's on-going program to repair and replace elements of the sanitary sewer collection system to extend the useful life of the system. The project is comprised of replacing 14 manholes identified in the Wastewater Collection System Master Plan.

Replacement of manholes is typically required due to: (1) the settlement of manholes which adversely affect the connecting pipes and sewage flows; (2) the deterioration of the manhole due to the corrosive gas produced by sewage; and/or (3) the scouring of receiving manholes at the end of a force main, due to the velocity of sewage pumped from the lift station via the force main pipeline.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2025-2026

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $0 $0 $300,000 $500,000 $0 $800,000
Wastewater Connection Fees $0 $0 $0 $1,300,000 $0 $1,300,000 Total $0 $0 $300,000 $1,800,000 $0 $2,100,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $0 $246,100 $1,436,000 $0 $273,900 $1,956,000 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $14,800 $129,200 $0 $144,000 Total $0 $0 $260,900 $1,565,200 $0 $273,900 $2,100,000
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CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN
WW-06 (NEW CIP)
OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (FY 2026-2027) Project Category: B
Project Description:

Most EMID lift stations were constructed between the mid-1960’s and the mid-1970’s. The criticality of each existing lift station varies depending upon its relative position within the network, the expected flow rate of influent sewage, and the station’s existing structural and mechanical capacities. Various lift stations throughout the City are equipped with gravity overflow facilities or emergency generators to establish collection system redundancy and to prevent sanitary sewer overflows.

This project will provide for a complete system analysis to determine areas within the District’s collection system that are currently unprotected or minimally protected by existing overflow, redundancy, bypassing, and backup power features as identified in the Wastewater Collection Master Plan completed in 2020. This analysis will take into consideration existing gravity overflow piping systems; permanent and portable emergency generators and connections and whether generator fuel capacity meets the minimum 12-hour run time requirement; and bypassing connections to identify collection system vulnerabilities in the event of a power outage and under wet-weather conditions.

This analysis will drive the prioritization of further redundancy measures and develop a cost/benefit analysis of those improvements. Based on the analysis, a construction budget will be identified and additional funding requests for construction will be brought back to the District Board.

Estimated Project Schedule:

Study: FY 2026-2027
Design/Construction: TBD (not part of this project)

Funding Sources 2022-23 2023-24 2024-25 2025-26 2026-2027 Total CIP - Wastewater $0 $0 $0 $0 $60,000 $60,000
Total $0 $0 $0 $0 $60,000 $60,000
Expenditures Categories 2022-23 2023-24 2024-25 2025-26 2026-2027 15%
Contingency Total
Estimated Project Costs $0 $0 $0 $0 $46,600 $7,800 $54,400 Inflation % — % 3 % 6 % 9 % 12 %
Inflation Escalation $0 $0 $0 $0 $5,600 $5,600
Total $0 $0 $0 $0 $52,200 $7,800 $60,000
88 CategoryNO. PROJECT NAME Funding Source*
TOTAL - Not
Including Prior
Years 2022-23 2023-24 2024-25 2025-26 2026-27

BUILDING PROJECTS
C BD-01 BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (FY 2017-2018) CC $ 200,000 $ 0 $ 200,000 $ 0 $ 0 $ 0 A BD-02 BD-02 (CIP 301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018-2019) BMF/CC $ 1,660,000 $ 1,660,000 $ 0 $ 0 $ 0 $ 0 A BD-03 BD-03 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) CC/CW/CWW $ 2,500,000 $ 2,500,000 $ 0 $ 0 $ 0 $ 0 B BD-04 BD-04 (NEW CIP) GOVERNMENT CENTER REHABILITATION (FY 2022-2023) CC $ 700,000 $ 200,000 $ 500,000 $ 0 $ 0 $ 0 C BD-05 BD-05 (NEW CIP) INSTALL REAR SECURITY GATES (FY 2022-2023) CC $ 500,000 $ 500,000 $ 0 $ 0 $ 0 $ 0 A BD-06 BD-06 (NEW CIP) RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022-2023) CC $ 800,000 $ 800,000 $ 0 $ 0 $ 0 $ 0 TOTAL BUILDING PROJECTS 6 $ 6,360,000 $ 5,660,000 $ 700,000 $ 0 $ 0 $ 0

PARKS PROJECTS
B PK-01 PK-01 (NEW CIP) SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022-2023) CC/GRANT $ 800,000 $ 800,000 $ 0 $ 0 $ 0 $ 0 B PK-02 PK-02 (NEW CIP) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (FY 2023-2024) CC$ 800,000 $ 0 $ 800,000 $ 0 $ 0 $ 0 C PK-03 PK-03 (NEW CIP) EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (FY 2023- 2024)
CC $ 500,000 $ 0 $ 500,000 $ 0 $ 0 $ 0 C PK-04 PK-04 (NEW CIP) INSTALL NEW AMPHITHEATER SHADE STRUCTURE (FY 2024-2025) CC $ 900,000 $ 0 $ 0 $ 900,000 $ 0 $ 0 B PK-05 PK-05 (NEW CIP) BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (FY 2024-2025) CC/ERF/PIL$ 8,050,000 $ 0 $ 0 $ 1,050,000 $ 7,000,000 $ 0 B PK-06 PK-06 (NEW CIP) DOG PARK SYNTHETIC TURF REPLACEMENT (FY 2025-2026) CC $ 500,000 $ 0 $ 0 $ 0 $ 500,000 $ 0 B PK-07 PK-07 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (FY 2026-2027) CC $ 1,248,000 $ 0 $ 0 $ 0 $ 0 $ 1,248,000 C PK-08 PK-08 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (FY 2026-2027) CC $ 120,000 $ 0 $ 0 $ 0 $ 0 $ 120,000 TOTAL PARKS PROJECTS 8 $ 12,918,000 $ 800,000 $ 1,300,000 $ 1,950,000 $ 7,500,000 $ 1,368,000

STORMWATER/LAGOON PROJECTS
A SW-01 SW-01 (CIP 301-690) SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022-2023) CC $ 150,000 $ 150,000 $ 0 $ 0 $ 0 $ 0 A SW-02 SW-02 (NEW CIP) LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (FY 2023- 2024)
CC $ 200,000 $ 0 $ 200,000 $ 0 $ 0 $ 0 A SW-03 SW-03 (NEW CIP) ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (FY 2023-2024) CC $ 2,000,000 $ 0 $ 2,000,000 $ 0 $ 0 $ 0 TOTAL STORMWATER/LAGOON PROJECTS 3 $ 2,350,000 $ 150,000 $ 2,200,000 $ 0 $ 0 $ 0

STREETS/TRAFFIC PROJECTS
A ST-01 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021) SB1/MM/CC $ 9,400,000 $ 475,000 $ 100,000 $ 1,000,000 $ 7,825,000 $ 0 A ST-02 ST-02 (CIP 301-703) STREET REHABILITATION (FY 2021-2022) MA $ 1,500,000 $ 1,500,000 $ 0 $ 0 $ 0 $ 0 B ST-03 ST-03 (NEW CIP) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (FY 2023-2024) SB1$ 850,000 $ 0 $ 400,000 $ 450,000 $ 0 $ 0 A ST-04 ST-04 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2023-2024) MA/CC$ 1,800,000 $ 0 $ 1,800,000 $ 0 $ 0 $ 0 C ST-05 ST-05 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (FY 2024-2025) MA $ 325,000 $ 0 $ 0 $ 75,000 $ 250,000 $ 0 A ST-06 ST-06 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2024-2025) MA/GT/CC$ 1,800,000 $ 0 $ 0 $ 1,800,000 $ 0 $ 0 A ST-07 ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2025-2026) MA/GT/MM/SB1/CC$ 1,800,000 $ 0 $ 0 $ 0 $ 1,800,000 $ 0 A ST-08 ST-08 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2026-2027) MA/GT/SB1/CC$ 1,800,000 $ 0 $ 0 $ 0 $ 0 $ 1,800,000 TOTAL STREETS/TRAFFIC PROJECTS 8 $ 19,275,000 $ 1,975,000 $ 2,300,000 $ 3,325,000 $ 9,875,000 $ 1,800,000

WATER PROJECTS
A WA-01 WA-01 (CIP 405-660) WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020) CW $ 1,600,000 $ 1,600,000 $ 0 $ 0 $ 0 $ 0 A WA-02 WA-02 (CIP 405-704) WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022) CW$ 3,000,000 $ 1,000,000 $ 1,000,000 $ 500,000 $ 500,000 $ 0 A WA-03 WA-03 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (FY 2023-2024) CW$ 650,000 $ 0 $ 650,000 $ 0 $ 0 $ 0 A WA-04 WA-04 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON EAST THIRD AVENUE (FY 2025-2026)
CW $ 300,000 $ 0 $ 0 $ 0 $ 300,000 $ 0 B WA-05 WA-05 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (FY 2026-2027) WCF$ 920,000 $ 0 $ 0 $ 0 $ 0 $ 920,000 TOTAL WATER PROJECTS 5 $ 6,470,000 $ 2,600,000 $ 1,650,000 $ 500,000 $ 800,000 $ 920,000

WASTEWATER PROJECTS
A WW-01WW-01 (CIP 451-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016) CWW/WIFIA/SRF$ 49,641,505 $ 39,784,664 $ 7,569,253 $ 1,670,400 $ 467,860 $ 149,328 A WW-02WW-02 (CIP 455-696) SANITARY SEWER SYSTEM IMPROVEMENTS (FY 2020-2021) CWW $ 400,000 $ 0 $ 400,000 $ 0 $ 0 $ 0 A WW-03WW-03 (NEW CIP) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (FY 2022-2023) CWW$ 500,000 $ 500,000 $ 0 $ 0 $ 0 $ 0 A WW-04WW-04 (NEW CIP) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (FY 2023-2024) CWW $ 7,300,000 $ 0 $ 600,000 $ 6,700,000 $ 0 $ 0 A WW-05WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (FY 2024-2025) CWW/WWCF $ 2,100,000 $ 0 $ 0 $ 300,000 $ 1,800,000 $ 0 B WW-06WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (FY 2026-2027) CWW$ 60,000 $ 0 $ 0 $ 0 $ 0 $ 60,000 TOTAL WASTEWATER COLLECTION SYSTEM PROJECTS 6 $ 60,001,505 $ 40,284,664 $ 8,569,253 $ 8,670,400 $ 2,267,860 $ 209,328 GRAND TOTAL 36 $ 107,374,505 $ 51,469,664 $ 16,719,253 $ 14,445,400 $ 20,442,860 $ 4,297,328 FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2022-23 TO 2026-27) *BMF=Building Maintenance Fund; CC=CIP City; CW=CIP Water; CWW=CIP Wastewater; CWW-ERF= Wastewater Equipment Replacement Fund; ERF=Equipment Replacement Fund; GT=Gas Tax (2103); LGOB=Levee GO Bonds; MA=Measure A; MM=Measure M; MW=Measure W; SB 1 = Road Maintenance & Rehab; SRF=State Revolving Funds; WIFIA=Water Infrastructure Finance and Innovation Act; WCF=Water Connection Fees; WWCF=Wastewater Connection Fees 89 Project No. PROJECT DESCRIPTION TOTAL

CATEGORY A PROJECTS
BD-02 BD-02 (CIP 301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018-2019) $ 1,660,000 BD-03 BD-03 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) $ 2,500,000 BD-06 BD-06 (NEW CIP) RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022-2023) $ 800,000 ST-01 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021) $ 9,400,000 ST-02 ST-02 (CIP 301-703) STREET REHABILITATION (FY 2021-2022) $ 1,500,000 ST-04 ST-04 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2023-2024) $ 1,800,000 ST-06 ST-06 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2024-2025) $ 1,800,000 ST-07 ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2025-2026) $ 1,800,000 ST-08 ST-08 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2026-2027) $ 1,800,000 SW-01 SW-01 (CIP 301-690) SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022-2023) $ 150,000 SW-02 SW-02 (NEW CIP) LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (FY 2023-2024) $ 200,000 SW-03 SW-03 (NEW CIP) ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (FY 2023-2024) $ 2,000,000 WA-01 WA-01 (CIP 405-660) WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020) $ 1,600,000 WA-02 WA-02 (CIP 405-704) WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022) $ 3,000,000 WA-03 WA-03 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (FY 2023-2024) $ 650,000 WA-04 WA-04 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON EAST THIRD AVENUE (FY 2025-2026) $ 300,000 WW-01 WW-01 (CIP 451-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016) $ 49,641,505 WW-02 WW-02 (CIP 455-696) SANITARY SEWER SYSTEM IMPROVEMENTS (FY 2020-2021) $ 400,000 WW-03 WW-03 (NEW CIP) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (FY 2022-2023) $ 500,000 WW-04 WW-04 (NEW CIP) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (FY 2023-2024) $ 7,300,000 WW-05 WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (FY 2024-2025) $ 2,100,000 Subtotal for Category A Projects $ 90,901,505

CATEGORY B PROJECTS
BD-04 BD-04 (NEW CIP) GOVERNMENT CENTER REHABILITATION (FY 2022-2023) $ 700,000 PK-01 PK-01 (NEW CIP) SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022-2023) $ 800,000 PK-02 PK-02 (NEW CIP) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (FY 2023-2024) $ 800,000 PK-05 PK-05 (NEW CIP) BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (FY 2024-2025) $ 8,050,000 PK-06 PK-06 (NEW CIP) DOG PARK SYNTHETIC TURF REPLACEMENT (FY 2025-2026) $ 500,000 PK-07 PK-07 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (FY 2026-2027) $ 1,248,000 ST-03 ST-03 (NEW CIP) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (FY 2023-2024) $ 850,000 WA-05 WA-05 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (FY 2026-2027) $ 920,000 WW-06 WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (FY 2026-2027) $ 60,000 Subtotal for Category B Projects $ 13,928,000

CATEGORY C PROJECTS
BD-01 BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (FY 2017-2018) $ 200,000 BD-05 BD-05 (NEW CIP) INSTALL REAR SECURITY GATES (FY 2022-2023) $ 500,000 PK-03 PK-03 (NEW CIP) EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (FY 2023-2024) $ 500,000 PK-04 PK-04 (NEW CIP) INSTALL NEW AMPHITHEATER SHADE STRUCTURE (FY 2024-2025) $ 900,000 PK-08 PK-08 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (FY 2026-2027) $ 120,000 ST-05 ST-05 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (FY 2024-2025) $ 325,000 Subtotal for Category C Projects $ 2,545,000
$ 107,374,505

TABLE A
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2022-23 TO 2026-27)

GRAND TOTAL
90 No. DESCRIPTION
CIP City
(Fund 301)
CAA&R
(Fund 304)

ISF-ERF
(Fund 502)

ISF-BMF
(Fund 505)
Developer
Deposits (4)
Measure A
(Fund 102)
Gas Tax
2103
(Fund 103)
Park-In-Lieu
Fees
(Fund 104)
Measure M
(Fund 105)
SB1 Road
Maint and
Rehab
(Fund 119)
Measure W
(Fund 136)
Water
Capital
Investment
(Fund 405)
Water
Connection
Fees
(Fund 409)
Wastewater
Capital
Investment
(Fund 455)
WIFIA (Fund
459)
WWCF
(Fund 460)
SRF
(Fund 461) TOTAL
301 304 502 505 102 103 104 105 119 136 405 409 455 459 460 461 Est. Funds Available for CIP Projects, 6/30/21 (1)$ 17,433,051 $ 1,857,469 $ 6,316,487 $ 6,465,844 $ 5,797,450 $ 1,858,591 $ (1,431)$ 2,068,831 $ (113,838)$ 40,715 $ 497,100 $ 2,749,086 $ 681,198 $ 4,520,282 $ - $ 149,971 $ 50,320,806 Long-Term CIP Funding Program (2)$ 17,500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,250,000 $ 20,150,000 $ - $ - $ - $ 44,900,000 Revenue Projections (3)$ - $ 5,555,000 $ - $ - $ - $ 3,902,000 $ 1,351,000 $ 569,800 $ 3,315,400 $ 1,834,600 $ - $ 497,855 $ - $ - $ 1,200,496 $ - $ 18,226,151 Bond/Loan Proceeds $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Internal Service Funds (5)$ - $ - $ 110,000 $ 800,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 910,000 Transfer In from Wastewater Revenue and Rate Stabilization Fund (6)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,039,479 $ - $ 33,044,400 $ 40,083,879 Total Available $ 34,933,051 $ 7,412,469 $ 6,426,487 $ 7,265,844 $ 5,797,450 $ 5,760,591 $ 1,349,569 $ 2,068,831 $ 455,962 $ 3,356,115 $ 2,331,700 $ 9,999,086 $ 1,179,053 $ 24,670,282 $ 7,039,479 $ 1,350,467 $ 33,044,400 $ 154,440,836

CATEGORY A PROJECTS
BD-02 BD-02 (CIP 301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018-2019) $ 860,000 $ - $ - $ 800,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,660,000 BD-03 BD-03 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) $ 1,250,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 625,000 $ - $ 625,000 $ - $ - $ - $ 2,500,000 BD-06 BD-06 (NEW CIP) RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022-2023) $ 800,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 800,000 ST-01 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021) $ 6,000,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,500,000 $ 1,900,000 $ - $ - $ - $ - $ - $ - $ 9,400,000 ST-02 ST-02 (CIP 301-703) STREET REHABILITATION (FY 2021-2022) $ - $ - $ - $ - $ - $ 1,500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,500,000 ST-04 ST-04 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2023-2024)
$ 300,000 $ - $ - $ - $ - $ 1,500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,800,000 ST-06 ST-06 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2024-2025)
$ 300,000 $ - $ - $ - $ - $ 1,000,000 $ 500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,800,000 ST-07 ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2025-2026)
$ 300,000 $ - $ - $ - $ - $ 500,000 $ 500,000 $ - $ 300,000 $ 200,000 $ - $ - $ - $ - $ - $ - $ - $ 1,800,000 ST-08 ST-08 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2026-2027)
$ 300,000 $ - $ - $ - $ - $ 800,000 $ 200,000 $ - $ - $ 500,000 $ - $ - $ - $ - $ - $ - $ - $ 1,800,000 SW-01 SW-01 (CIP 301-690) SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022- 2023)
$ 150,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 150,000 SW-02 SW-02 (NEW CIP) LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (FY 2023-2024)
$ 200,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000 SW-03 SW-03 (NEW CIP) ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (FY 2023-2024)
$ 2,000,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,000,000 WA-01 WA-01 (CIP 405-660) WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,600,000 $ - $ - $ - $ - $ - $ 1,600,000 WA-02 WA-02 (CIP 405-704) WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,000,000 $ - $ - $ - $ - $ - $ 3,000,000 WA-03 WA-03 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (FY 2023-2024)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 650,000 $ - $ - $ - $ - $ - $ 650,000 WA-04 WA-04 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON EAST THIRD AVENUE (FY 2025-2026)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 300,000 $ - $ - $ - $ - $ - $ 300,000 WW-01 WW-01 (CIP 451-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,557,626 $ 7,039,479 $ - $ 33,044,400 $ 49,641,505 WW-02 WW-02 (CIP 455-696) SANITARY SEWER SYSTEM IMPROVEMENTS (FY 2020-2021)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 400,000 $ - $ - $ - $ 400,000 WW-03 WW-03 (NEW CIP) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (FY 2022-2023)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 500,000 $ - $ - $ - $ 500,000 WW-04 WW-04 (NEW CIP) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (FY 2023-2024)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,300,000 $ - $ - $ - $ 7,300,000 WW-05 WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (FY 2024-2025)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 800,000 $ - $ 1,300,000 $ - $ 2,100,000 SUB TOTAL OF CATEGORY A PROJECTS $ 12,460,000 $ - $ - $ 800,000 $ - $ 5,300,000 $ 1,200,000 $ - $ 300,000 $ 2,200,000 $ 1,900,000 $ 6,175,000 $ - $ 19,182,626 $ 7,039,479 $ 1,300,000 $ 33,044,400 $ 90,901,505 FUNDS AVAIL. (LESS CATEGORY A PROJECTS) $ 22,473,051 $ 7,412,469 $ 6,426,487 $ 6,465,844 $ 5,797,450 $ 460,591 $ 149,569 $ 2,068,831 $ 155,962 $ 1,156,115 $ 431,700 $ 3,824,086 $ 1,179,053 $ 5,487,656 $ - $ 50,467 $ - $ 63,539,331

CATEGORY B PROJECTS
BD-04 BD-04 (NEW CIP) GOVERNMENT CENTER REHABILITATION (FY 2022-2023)$ 700,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 700,000 PK-01 PK-01 (NEW CIP) SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022-2023)$ 800,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 800,000 PK-02 PK-02 (NEW CIP) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (FY 2023-2024)
$ 800,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 800,000 PK-05 PK-05 (NEW CIP) BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (FY 2024-2025)
$ 5,890,000 $ - $ 110,000 $ - $ - $ - $ - $ 2,050,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,050,000 PK-06 PK-06 (NEW CIP) DOG PARK SYNTHETIC TURF REPLACEMENT (FY 2025-2026)$ 500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 500,000 PK-07 PK-07 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (FY 2026-2027)
$ 1,248,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,248,000 ST-03 ST-03 (NEW CIP) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (FY 2023-2024)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ 850,000 $ - $ - $ - $ - $ - $ - $ - $ 850,000 WA-05 WA-05 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (FY 2026-2027)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 920,000 $ - $ - $ - $ - $ 920,000 WW-06 WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (FY 2026-2027)
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 60,000 $ - $ - $ - $ 60,000 SUB TOTAL OF CATEGORY B PROJECTS $ 9,938,000 $ - $ 110,000 $ - $ - $ - $ - $ 2,050,000 $ - $ 850,000 $ - $ - $ 920,000 $ 60,000 $ - $ - $ - $ 13,928,000 FUNDS AVAIL. (LESS CATEGORY A AND B PROJECTS) $ 12,535,051 $ 7,412,469 $ 6,316,487 $ 6,465,844 $ 5,797,450 $ 460,591 $ 149,569 $ 18,831 $ 155,962 $ 306,115 $ 431,700 $ 3,824,086 $ 259,053 $ 5,427,656 $ - $ 50,467 $ - $ 49,611,331

CATEGORY C PROJECTS
BD-01 BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (FY 2017-2018)
$ 200,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 200,000 BD-05 BD-05 (NEW CIP) INSTALL REAR SECURITY GATES (FY 2022-2023) $ 500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 500,000 PK-03 PK-03 (NEW CIP) EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (FY 2023-2024)
$ 500,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 500,000 PK-04 PK-04 (NEW CIP) INSTALL NEW AMPHITHEATER SHADE STRUCTURE (FY 2024-2025)$ 900,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 900,000 PK-08 PK-08 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (FY 2026-2027)$ 120,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 120,000 ST-05 ST-05 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (FY 2024-$ - $ - $ - $ - $ - $ 325,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 325,000 SUB TOTAL OF CATEGORY C PROJECTS $ 2,220,000 $ - $ - $ - $ - $ 325,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,545,000 FUNDS AVAIL. (LESS CATEGORY A, B, AND C PROJECTS) $ 10,315,051 $ 7,412,469 $ 6,316,487 $ 6,465,844 $ 5,797,450 $ 135,591 $ 149,569 $ 18,831 $ 155,962 $ 306,115 $ 431,700 $ 3,824,086 $ 259,053 $ 5,427,656 $ - $ 50,467 $ - $ 47,066,331 (1)
(2)
(3)
(4)
(5)
(6)
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2022-23 TO 2026-27)

TABLE B
Transfer In from Wastewater Revenue and Rate Stabilization Fund for Wastewater Treatment Plan Master Improvement Program (CIP 455-652).

Funds represent the deposits made by the developers of the following projects: Gilead Sciences; Chess Drive Offices; Pilgrim-Triton; 15-acre site; Biomed.

Funds transferred from the City General Fund (for CIP - City), Water Operations (CIP Water) and Wastewater Operations (CIP Wastewater) over the next five years per the Long-Term CIP Funding Program.

Funds Available are based upon a February 12, 2021 financial review and also include $2.0M Emergency Reserve for CIP Water and CIP Wastewater.

Revenue projections based on a preliminary projection of revenues in preparation of the 5-Year Financial Plan forecast.

Funds represent transfers in from Internal Service Funds for CIP projects. 91 PROJECT NAME
Funding
Source*
Total Project
Cost
Prior Years'
Funding
FY 2022-2023
Funding
CIP City
(Fund 301)
Building
Maintenance
Internal Service
Fund
(Fund 505)
Measure A
(Fund 102)
Measure W
(Fund 136)
Levee GO
Bonds
(Fund 230)
Water Capital
Investment
(Fund 405)
Wastewater
Capital
Investment
(Fund 455)
WIFIA (Fund
459)
SRF
(Fund 461)
301 505 102 136 230 405 455 459 461

BUILDING PROJECTS
BD-02 (CIP 301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018- 2019)
BMF/CC $2,040,000 $380,000 $1,660,000 $860,000 $800,000 $0 $0 $0 $0 $0 $0 $0 BD-03 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) CC/CW/CWW $2,750,000 $250,000 $2,500,000 $1,250,000 $0 $0 $0 $0 $625,000 $625,000 $0 $0 BD-04 (NEW CIP) GOVERNMENT CENTER REHABILITATION (FY 2022-2023) CC $200,000 $0 $200,000 $200,000 $0 $0 $0 $0 $0 $0 $0 $0 BD-05 (NEW CIP) INSTALL REAR SECURITY GATES (FY 2022-2023) CC $500,000 $0 $500,000 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 BD-06 (NEW CIP) RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022- 2023)
CC $800,000 $0 $800,000 $800,000 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL BUILDING PROJECTS 5 $6,290,000 $630,000 $5,660,000 $3,610,000 $800,000 $0 $0 $0 $625,000 $625,000 $0 $0

PARKS PROJECTS
PK-01 (NEW CIP) SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022- 2023)
CC/GRANT $800,000 $0 $800,000 $800,000 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL PARKS PROJECTS 1 $800,000 $0 $800,000 $800,000 $0 $0 $0 $0 $0 $0 $0 $0

STORMWATER/LAGOON PROJECTS
SW-01 (CIP 301-690) SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022-2023)
CC $550,000 $400,000 $150,000 $150,000 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL STORMWATER/LAGOON PROJECTS 1 $550,000 $400,000 $150,000 $150,000 $0 $0 $0 $0 $0 $0 $0 $0

STREETS/TRAFFIC PROJECTS
ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021) SB1/MM/CC $525,000 $50,000 $475,000 $0 $0 $0 $475,000 $0 $0 $0 $0 $0 ST-02 (CIP 301-703) STREET REHABILITATION (FY 2021-2022) MA $3,200,000 $1,700,000 $1,500,000 $0 $0 $1,500,000 $0 $0 $0 $0 $0 $0 TOTAL STREETS/TRAFFIC PROJECTS 2 $3,725,000 $1,750,000 $1,975,000 $0 $0 $1,500,000 $475,000 $0 $0 $0 $0 $0

WATER PROJECTS
WA-01 (CIP 405-660) WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020)
CW $5,700,000 $4,100,000 $1,600,000 $0 $0 $0 $0 $0 $1,600,000 $0 $0 $0 WA-02 (CIP 405-704) WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022)
CW $1,250,000 $250,000 $1,000,000 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 TOTAL WATER PROJECTS 2 $6,950,000 $4,350,000 $2,600,000 $0 $0 $0 $0 $0 $2,600,000 $0 $0 $0

WASTEWATER PROJECTS
WW-01 (CIP 451-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016)
CWW/WIFIA/SRF $143,164,430 $103,379,766 $39,784,664 $0 $0 $0 $0 $0 $0 $2,755,786 $7,039,479 $29,989,399 WW-03 (NEW CIP) SHELL BRIDGE SANITARY SEWER FORCE MAIN
REHABILITATION (FY 2022-2023)
CWW $500,000 $0 $500,000 $0 $0 $0 $0 $0 $0 $500,000 $0 $0 TOTAL WASTEWATER PROJECTS 2 $143,664,430$103,379,766$40,284,664 $0 $0 $0 $0 $0 $0 $3,255,786$7,039,479$29,989,399 GRAND TOTAL 13 $161,979,430$110,509,766$51,469,664$4,560,000 $800,000 $1,500,000$475,000 $0 $3,225,000$3,880,786$7,039,479$29,989,399 CAPITAL IMPROVEMENT PROJECT (CIP) PLAN (FISCAL YEAR 2022-23)

TABLE C
92 ACTIVE

PROJECTDESCRIPTION
FY
AUTH

PRIOR YRS

BUDGET & ADJ

CURRENT YR

BUDGET & ADJ
(FY 20-21)
TOTAL

APPROVED
BUDGET & ADJ2022-23 2023-24 2024-25 2025-26 2026-27

ESTIMATED
TOTAL

PROJECT
BUDGET
455-626 SANITARY SEWER LIFT STATION IMPROVEMENTS PROJECT-PHASE 5 (2012-2013)12-13 $8,075,000 $0 $8,075,000 $0 $0 $0 $0 $0 $8,075,000 301-635 MEDIAN MODIFICATIONS - FOSTER CITY BLVD AT CHESS DRIVE - MP#3 (2013-2014, 2014-2015)13-14 $345,540 $0 $345,540 $0 $0 $0 $0 $0 $345,540 405-636 WATER SYSTEM IMPROVEMENTS AND VALVE REPLACEMENTS (2013-2014)13-14 $1,550,000 $1,550,000 $0 $0 $0 $0 $0 $1,550,000 301-637 ROAD IMPROVEMENTS AT FOSTER CITY BLVD AT CHESS DRIVE - MP #4, #7, #8 (2013-2014)13-14 $1,141,000 $0 $1,141,000 $0 $0 $0 $0 $0 $1,141,000 455-652 WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016)15-16 $50,820,816 $52,558,950 $103,379,766 $39,784,664 $7,569,253 $1,670,400 $467,860 $149,328 $153,021,271 301-655

PARK INFRASTRUCTURE IMPROVEMENTS- LEO RYAN PARK LAWN CONVERSION AND BOCCE COURTS (2015-2016) 15-16 $925,000 $0 $925,000 $0 $0 $0 $0 $0 $925,000 327-657 LEVEE PROTECTION PLANNING AND IMPROVEMENTS PROJECT (FY 2015-2016)15-16 $82,867,795 $2,132,205 $85,000,000 $0 $0 $0 $0 $0 $85,000,000 405-660 WATER TANKS AND FACILITIES IMPROVEMENTS (FY 2019-2020) 19-20 $3,200,000 $900,000 $4,100,000 $1,600,000 $0 $0 $0 $0 $5,700,000 301-669 CORPORATION YARD FACILITY IMPROVEMENTS (2016-2017) 16-17 $566,002 $0 $566,002 $0 $0 $0 $0 $0 $566,002 301-677 LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (FY 2017-2018)17-18 $120,000 $0 $120,000 $0 $200,000 $0 $0 $0 $320,000 301-678 NEW RECREATION CENTER MASTER PLAN (2017-2018) 17-18 $300,000 $0 $300,000 $0 $0 $0 $0 $0 $300,000 301-681 NEW TRAFFIC SIGNALS AT VARIOUS LOCATIONS (2018-2019) 18-19 $2,882,500 $1,000,000 $3,882,500 $0 $0 $0 $0 $0 $3,882,500 301-682 PARK SYSTEM MASTER PLAN STUDY (2018-2019) 18-19 $257,500 $227,000 $484,500 $0 $0 $0 $0 $0 $484,500 301-685 HVAC IMPROVEMENTS IN CITY BUILDINGS (FY 2018-2019) 18-19 $380,000 $0 $380,000 $1,660,000 $0 $0 $0 $0 $2,040,000 301-690 SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (FY 2022-2023) 22-23 $400,000 $400,000 $150,000 $0 $0 $0 $0 $550,000 301-692 PARK INFRASTRUCTURE PROJECTS (2019-2020) 19-20 $525,000 $0 $525,000 $0 $0 $0 $0 $0 $525,000 301-693 ROOF REPLACEMENT (2019-2020) 19-20 $635,000 $600,000 $1,235,000 $0 $0 $0 $0 $0 $1,235,000 301-694 DYNAMIC SIGNAGE FOR TRAFFIC RELIEF PILOT PROGRAM (2019-2020) 19-20 $225,000 $250,000 $475,000 $0 $0 $0 $0 $0 $475,000 455-695 LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS (FY 2020-2021) 20-21 $150,000 $1,650,000 $1,800,000 $0 $0 $0 $0 $0 $1,800,000 455-696 SANITARY SEWER SYSTEM IMPROVEMENTS (FY 2020-2021) 20-21 $900,000 $900,000 $0 $400,000 $0 $0 $0 $1,300,000 301-697 DYNAMIC SIGNAGE FOR TRAFFIC RELIEF PILOT PROGRAM (2019-2020) 19-20 $1,500,000 $1,500,000 $0 $0 $0 $0 $0 $1,500,000 301-698 TRAFFIC SIGNAL SYSTEM UPGRADES (FY 2020-2021) 20-21 $50,000 $50,000 $475,000 $100,000 $1,000,000 $7,825,000 $0 $9,450,000 301-699 CORPORATION YARD WORKSHOPS EXTERIOR PAINT (2020-2021) 20-21 $200,000 $200,000 $0 $0 $0 $0 $0 $200,000 301-700 FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) 21-22 $0 $250,000 $250,000 $2,500,000 $0 $0 $0 $0 $2,750,000 301-701 SPORT COURT RESURFACING (2021-2022) 21-22 $0 $200,000 $200,000 $0 $0 $0 $0 $0 $200,000 301-702 PARK PATHWAY RESTORATION (2021-2022) 21-22 $0 $300,000 $300,000 $0 $0 $0 $0 $0 $300,000 301-703 STREET REHABILITATION (FY 2021-2022) 21-22 $0 $1,700,000 $1,700,000 $1,500,000 $0 $0 $0 $0 $3,200,000 405-704 WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021-2022)21-22 $0 $250,000 $250,000 $1,000,000 $1,000,000 $500,000 $500,000 $0 $3,250,000 455-705 EMERGENCY GENERATOR REPLACEMENTS (2021-2022) 21-22 $0 $2,300,000 $2,300,000 $0 $0 $0 $0 $0 $2,300,000 NEW GOVERNMENT CENTER REHABILITATION (FY 2022-2023) 22-23 $0 $0 $0 $200,000 $500,000 $0 $0 $0 $700,000 NEW INSTALL REAR SECURITY GATES (FY 2022-2023) 22-23 $0 $0 $0 $500,000 $0 $0 $0 $0 $500,000 NEW RENOVATE ELEVATORS IN CITY BUILDINGS (FY 2022-2023) 22-23 $0 $0 $0 $800,000 $0 $0 $0 $0 $800,000 NEW SEA CLOUD PARK S4 SYNTHETIC RESURFACING (FY 2022-2023) 22-23 $0 $0 $0 $800,000 $0 $0 $0 $0 $800,000 NEW SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (FY 2022-2023)22-23 $0 $0 $0 $500,000 $0 $0 $0 $0 $500,000 NEW EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (FY 2023-2024)23-24 $0 $0 $0 $0 $800,000 $0 $0 $0 $800,000 NEW EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (FY 2023-2024)23-24 $0 $0 $0 $0 $500,000 $0 $0 $0 $500,000 NEW LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (FY 2023-2024)23-24 $0 $0 $0 $0 $200,000 $0 $0 $0 $200,000 NEW ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (FY 2023-2024)23-24 $0 $0 $0 $0 $2,000,000 $0 $0 $0 $2,000,000 NEW SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (FY 2023-2024)23-24 $0 $0 $0 $0 $400,000 $450,000 $0 $0 $850,000 NEW STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2023-2024)23-24 $0 $0 $0 $0 $1,800,000 $0 $0 $0 $1,800,000 NEW CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (FY 2023-2024)23-24 $0 $0 $0 $0 $650,000 $0 $0 $0 $650,000 NEW SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (FY 2023-2024)23-24 $0 $0 $0 $0 $600,000 $6,700,000 $0 $0 $7,300,000 NEW INSTALL NEW AMPHITHEATER SHADE STRUCTURE (FY 2024-2025) 24-25 $0 $0 $0 $0 $0 $900,000 $0 $0 $900,000 NEW BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (FY 2024-2025)24-25 $0 $0 $0 $0 $0 $1,050,000 $7,000,000 $0 $8,050,000 NEW BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (FY 2024-2025) 24-25 $0 $0 $0 $0 $0 $75,000 $250,000 $0 $325,000 NEW STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2024-2025)24-25 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $1,800,000 NEW SANITARY SEWER MANHOLE REPLACEMENTS (FY 2024-2025) 24-25 $0 $0 $0 $0 $0 $300,000 $1,800,000 $0 $2,100,000 NEW DOG PARK SYNTHETIC TURF REPLACEMENT (FY 2025-2026) 25-26 $0 $0 $0 $0 $0 $0 $500,000 $0 $500,000 NEW STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2025-2026)25-26 $0 $0 $0 $0 $0 $0 $1,800,000 $0 $1,800,000 NEW
PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON EAST THIRD AVENUE (FY 2025- 2026) 25-26 $0 $0 $0 $0 $0 $0 $300,000 $0 $300,000
NEW CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (FY 2026-2027)26-27 $0 $0 $0 $0 $0 $0 $0 $1,248,000 $1,248,000 NEW AMPHITHEATER SYNTHETIC TURF RESURFACING (FY 2026-2027) 26-27 $0 $0 $0 $0 $0 $0 $0 $120,000 $120,000 NEW STREET REHABILITATION AND PARK PATHWAY RESTORATION (FY 2026-2027)26-27 $0 $0 $0 $0 $0 $0 $0 $1,800,000 $1,800,000 NEW COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (FY 2026-2027)26-27 $0 $0 $0 $0 $0 $0 $0 $920,000 $920,000 NEW OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (FY 2026-2027)26-27 $0 $0 $0 $0 $0 $0 $0 $60,000 $60,000 TOTAL $158,016,153$64,318,155$222,334,308$51,469,664$16,719,253$14,445,400$20,442,860 $4,297,328$329,708,813 ACTIVE AND PROPOSED CIP'S THROUGH FY2026-27

TABLE D
93 Attachment 3
PRIORITY PROJECTS FOR ACTIVE AND PROPOSED CIP'S THROUGH FY 2022-2023

PRIORITYPROJECT
No. DESCRIPTION FY AUTH

ESTIMATED

TOTAL PROJECT
BUDGET
Status
1 327-657 LEVEE PROTECTION PLANNING AND IMPROVEMENTS PROJECT - (2015-2016) 15-16 87,000,000 CONSTRUCTION 2 455-652 WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015- 2016) 15-16 153,021,271 CONSTRUCTION
3 301-678 RECREATION CENTER REPLACEMENT (2017-2018) 17-18 55,000,000 PRE-DESIGN 4 301-681 NEW TRAFFIC SIGNALS AT VARIOUS LOCATIONS (2018-2019) 18-19 3,882,500 CONSTRUCTION 5 301-697 STREET REHABILITATION (FY 2020-2021) 20-21 1,500,000 DESIGNED/ READY TO ADVERTISE 6 455-626 SANITARY SEWER LIFT STATION IMPROVEMENTS PROJECT-PHASE 5 (2012- 2013) 12-13 8,075,000 FINAL PUNCH LIST ITEMS 7 301-694 DYNAMIC SIGNAGE FOR TRAFFIC RELIEF PILOT PROGRAM (2019-2020) 19-20 475,000 CONSTRUCTION 8 301-701 SPORT COURT RESURFACING (FY 2021-2022) 21-22 200,000 BIDDING 9 405-636 WATER SYSTEM IMPROVEMENTS AND VALVE REPLACEMENTS (2013-2014) 13-14 1,550,000 CONSTRUCTION 10 NEW GOVERNMENT CENTER REHABILITATION (2022-2023) 22-23 700,000 NEW FY22 -23 11 NEW INSTALL REAR SECURITY GATES (2022-2023) 22-23 500,000 NEW FY22 -23 12 405-660 WATER TANKS AND FACILITIES IMPROVEMENTS (2016-2017) 16-17 5,700,000 DESIGN 13 301-690 SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (2019-2020) 19-20 550,000 DESIGN 14 301-700 FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) 21-22 2,750,000 CONCEPTUAL DESIGN 15 301-693 ROOF REPLACEMENT (2019-2020) 19-20 1,235,000 PRE-DESIGN 16 301-702 PARK PATHWAY RESTORATION (FY 2021-2022) 21-22 300,000 DESIGN FY22-23 17 301-703 STREET REHABILITATION (FY 2021-2022) 21-22 3,200,000 DESIGN FY22-23 18 NEW SHELL BRIDGE SANITARY SEWER FORCE MAIN REHAB (2022-2023)22-23 500,000 NEW FY22 -23 19 NEW RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) 22-23 800,000 NEW FY22 -23 20 NEW SEA CLOUD PARK S4 SYNTHETIC RESURFACING (2022-2023) 22-23 800,000 NEW FY22 -23 21 455-705 EMERGENCY GENERATOR REPLACEMENTS (FY 2021-2022) 21-22 2,300,000 NOT STARTED 22 301-635 MEDIAN MODIFICATIONS - FOSTER CITY BLVD AT CHESS DRIVE - MP#3 (2013- 2014, 2014-2015) 13-14 345,540 DESIGNED

READY TO ADVERTISE
23 301-637 ROAD IMPROVEMENTS AT FOSTER CITY BLVD AT CHESS DRIVE - MP #4, #7, #8 (2013-2014) 13-14 1,141,000 DESIGNED

READY TO ADVERTISE
24 301-685 HVAC IMPROVEMENTS IN CITY BUILDINGS (2018-2019) 18-19 2,040,000 NOT STARTED - Wait until Roofs done 25 301-698 TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) 20-21 9,450,000 CONCEPTUAL PLANNING 26 405-704 WATER TRANSMISSION & DISTRIBUTION SYSTEMS IMPROVEMENTS (FY 2021- 2022) 21-22 3,250,000 WATER METER TESTING
27 455-695 LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS (FY 2020-2021) 20-21 1,800,000 DESIGN-90% 28 301-677 LIBRARY EXTERIOR WALL SEALING AND TILE INSTALLATION (2017-2018) 17-18 320,000 NOT STARTED 29 455-696 SANITARY SEWER SYSTEM IMPROVEMENTS (2020-2021) 20-21 1,300,000 DESIGN-90% 30 301-699 CORPORATION YARD WORKSHOPS EXTERIOR PAINT (2020-2021) 20-21 200,000 NOT STARTED - Wait until Roofs done 31 301-682 PARK SYSTEM MASTER PLAN STUDY (2018-2019) 18-19 484,500 On hold until Parks and Recreation Director Hired
32 301-655 PARK INFRASTRUCTURE IMPROVEMENTS- LEO RYAN PARK LAWN CONVERSION AND BOCCE COURTS (2015-2016) 15-16 925,000 On hold until Rec Center Plan determined 33 301-669 CORPORATION YARD FACILITY IMPROVEMENTS (2016-2017) 16-17 566,002 Completed. Closeout and transfer balance to CIP 693 (Parks shed)
34 301-692 PARK INFRASTRUCTURE PROJECTS (2019-2020) 19-20 525,000 Completed. Closeout and transfer balance to CIP 693 (PW workshop roof)
35 301-689 STREET RESURFACING PROJECT (2019-2020) 19-20 2,744,000 Completed. Closeout pending 355,129,813$
*
Not
Assigned
Yet
LAGOON DREDGING PROJECT 27-28 2,300,000$ Project to be accelerated and additional funding added for construction
94 Cr
ea Recreation Center (CIP 301-678)
Enter Company Name in cell B2.Foster City
Enter the name of the Project Lead in cell B3. Enter the Project Start date in cell E3. Pooject Start: label is in cell C3.

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o Submit RFP to CC 4/18/22 4/18/22
City Council Meeting - Approval of RFP 5/2/22 5/2/22
Advertise RFP 5 weeks 5/3/22 6/7/22
Staff Proposal Review 4 weeks 6/8/22 7/5/22
Submit Top 3 Proposals to CC 7/5/22 7/5/22
City Council Meeting - Top 3 Interviews 7/18/22 7/18/22 Finalist Revew 1 week 7/19/22 7/26/22
Contract Negotiation 1 week 7/27/22 8/3/22
Submit Contract Award to CC 8/22/22 8/22/22
City Council Meeting - Contract Award 9/6/22 9/6/22
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Sep-22Aug-22
Project Start: Mon, 3/14/2022
Display Week: Mar-22 Apr-22 May-22 Jun-22 Jul-22
Attachment 4
95 DATE: March 28, 2022

TO: Mayor and Members of the City Council

VIA: Kevin Miller, Interim City Manager

FROM: Louis Sun, Public Works Director
Edmund Suen, Finance Director

SUBJECT: LONG-TERM CAPITAL IMPROVEMENT PROJECTS

PROGRAM AND FUNDING PLAN - CITY CAPITAL
INVESTMENT FUND - FY 2022-2023 TO FY 2036-2037

RECOMMENDATION
It is recommended that the City Council provide direction on the funding strategy for the Long-Term Capital Improvement Program (CIP) for the City’s Capital Investment Fund (also known as the Capital Projects Fund) and the list of CIP projects over the next 15-year period.

EXECUTIVE SUMMARY
In 2010, the City Council approved a funding strategy for its CIPs in the form of a Long-Term CIP Funding program. This program has historically analyzed potential future CIP projects over a 10-year capital expenditure forecast and funds those needs on an annual basis at 1/10th of the unfunded capital expenditures obligation. This was approved recognizing that the City does not anticipate the magnitude of previous one-time revenues or redevelopment agency funds to be available in the future, and in recognition of its “pay-as-you- go” approach to funding capital projects. The City prefers not to use debt financing for its capital projects unless it is necessary due to the magnitude of the project (e.g., Levee Protection Planning and Improvements Project, CIP 327-657). As part of its budget discussions last year, City Council directed staff 96 to expand the 10-year forecast to 15-years effective FY 2022-2023. As a result, City staff has implemented this change.

The prudent accumulation of Capital Investment Fund reserves over the past years is projected to produce a $17.4 million Reserve Balance (inclusive of a $2 million emergency reserve and a $10 million placeholder for Levee Project cost overrun above $90 million) by June 30, 2022. Based on a planned $40.6 million of CIP projects over the next seven years through FY 2028-2029 (excluding the Levee Project which is debt funded), staff recommends “freeing” up the $10 million placeholder for the Levee Project to support these other essential City CIP projects. This will result in annual General Fund transfers of $3.5 million over the next seven fiscal years followed thereafter by eight years of $2.5 million annual transfers, as anticipated projects diminish during the last half of the 15-year CIP Plan.

To prepare the recommended CIP, City staff performed its annual long-term review and made appropriate modifications to the funding amounts and timing of future projects. Projects have been analyzed in two categories based on their separate funding sources:
City Capital Investment Fund (City CIP Fund) – includes projects such as bridges, lagoon structures, levees, parks, and buildings, which are funded from General Fund sources.
Streets-Related Funding – includes streets and traffic signal projects, which are funded first through sources from Measure A, Gas Tax §2103, Measure M, SB 1 (Road Maintenance and Rehabilitation Account), and Measure W funds.

The analysis for City CIP Fund Projects and Street-Related Projects takes into consideration the existing fund balance resources projected to be available as of June 30, 2022, based on the latest estimates of CIP activity through the end of the current fiscal year and projected revenues available from applicable revenue sources. The analysis for the City CIP Fund ensures that the reserve balances stay above the minimum $2 million emergency reserve level while the Streets-Related Funding analysis has no minimum reserve level policy established, since City CIP Funds can be drawn for those purposes in an emergency.

The City’s CIP projects over a 10-year time horizon are increasing from $63.3 million to $68.9 million with parks projects accounting for $30.9 million of the $68.9 million total. These park projects do include $2.05 million in ancillary 97 funding from Park In Lieu fees and $1.22 million from the Equipment Replacement Fund. Building projects total $6.56 million and include HVAC improvements, roof replacements, fuel system improvements, government center rehabilitation, security gates, and elevator renovations. A third lagoon pump with related infrastructure has been added as a Lagoon Project for FY 2023-2024.

The Streets-Related Funding analysis indicates there are sufficient revenues to fund the forecasted 10-year projects and to maintain the City’s PCI (Pavement Condition Index) rating of 82.

BACKGROUND
The City Council has made it a priority to ensure that the City’s infrastructure is well-maintained on an ongoing basis. Such proactive maintenance and repair of infrastructure ensures that key systems are operating at peak levels, promotes safety, provides for a continuity of services to the community, maintains property values, and maintains the quality of life that the community has come to expect.

When the City was newer, capital improvement efforts included the construction of new infrastructure. Now that the City is at build-out and 50 years old, there has been a transition from new construction to proactive preventative infrastructure maintenance, which affects the types of project and how those future CIP programs are funded to prioritize minimizing the potential for emergency repair situations.

Maintenance vs. CIP
Managing the City’s infrastructure manifests itself in the following ways:
Proactive Maintenance – The preventative maintenance efforts of the City’s Public Works and Parks Maintenance crews on an ongoing basis reduce the overall future costs of City infrastructure. These ongoing operating costs offset the magnitude and expense of future infrastructure replacement projects.
New Infrastructure or Significant Infrastructure Replacement Projects – In some cases, there may be CIP projects that would create new infrastructure or projects that are considered so significant in nature that the entire infrastructure is replaced or built anew. 98 Recurring Capital Improvement Projects – Some CIPs are considered “recurring” and amount to significant repair work, such as street overlays, park turf replacement, and levee maintenance. The underlying infrastructure is still usable, but these larger maintenance efforts help extend the useful lives of that infrastructure.

The first category, Proactive Maintenance Activities, is budgeted in the Public Works and Parks and Recreation Departments' annual operating budgets in the General Fund.

In FY 2012-2013, the City Council approved a new Capital Asset Acquisition and Replacement Fund (CAARF), funded from the sale of the 11-acre site of the North Peninsula Jewish Campus and subsequent sale of the 15-acre site of the Foster Square project. The CAARF may be used to fund new infrastructure or significant infrastructure replacement projects, thus providing funding for the second category. In fact, the City Council provided direction in early 2022 on a $55 million build-to-budget Recreation Center rebuild project using $36 million from CAARF and the remaining $19 million from General Fund Reserves.

Projects in the final category, Recurring Capital Improvement Projects, are funded from either recurring revenue sources (e.g., Measure A, Gas Tax, Measure M, SB1, Measure W), or are otherwise funded from the City’s General Fund resources as transfers out to the City CIP Fund.

Exclusion of Enterprise Fund Assets
This report excludes the long-term CIP funding of Water and Wastewater system related projects for two primary reasons: (1) such projects are analyzed as part of the 15-year rate model process for each enterprise fund; and (2) the District Board has the opportunity to include such replacements when establishing water and wastewater rates. A separate report addresses the Water and Wastewater CIPs and capital funding.

ANALYSIS
Approach
City staff has updated the Long-Term CIP Funding analysis in light of current maintenance efforts, assessment of replacement requirements, and replacement costs in the following seven (7) categories:
99 Streets – including pavement management efforts (e.g., arterial and collector street overlays) and sidewalks, curbs, and gutters Bridges – including bridges and approaches owned by the City, and only bridge approaches for those overcrossings not owned by the City (i.e., E. Hillsdale Boulevard/Marina Lagoon overcrossing, Foster City Boulevard/92 Overpass, Vintage Park/92 Overpass)
Lagoon Structures – including bulkheads, dredging, boat ramps, culverts, inlets, and storm water pumps
Levee – including the levee infrastructure
Parks – Park infrastructure including hardscapes, landscaping, restrooms, lighting, irrigation systems, and permanent park structures such as tennis and basketball courts. It also includes the medians and cul-de-sacs maintained throughout the City
Street Lights, Traffic Signal, and Crosswalk Systems – physical light and signal structures, controllers, and systems
Buildings – including the Government Center campus, Recreation Center campus, and the Corporation Yard (structures associated with parks are included in Parks above)
Assumptions
Funding Sources
In each category, initial assumptions were made as to the funding sources of various assets. Funding of asset components that are through other sources (e.g. developer fees) were excluded from the analysis. If an asset replacement value was considered so significant that the only effective financing option was to use debt financing (e.g., replacement of City Hall or the voter approved G.O.

Bond funding of the Levee Improvement Project), those assets were also excluded. Assets excluded in each category (including the assumed alternate funding source in parentheses) were as follows:
Streets – LED signal faces and signal controllers, pedestrian LED and appurtenances, backlit street signs (ERF), and traffic improvements as part of the Multi-Project Traffic Improvements Project that are fully funded by developers of the respective projects
Bridges – None
Lagoon – Lagoon itself, shorelines, rip-rap, and retaining walls (debt financing); pump stations, gates, trash racks and flappers (ERF) 100
Levee – Complete rebuild or raising of Levee infrastructure to address sea level rise (debt financing)
Parks – Complete park rebuilds “from the ground up” (potential debt financing)
Buildings – Minor replacement projects (Building Maintenance Fund) Expenditure Assumptions
The key expenditure assumptions were:
Recurring Projects – projects considered recurring in nature (as discussed previously) are based upon replacement values, which were reviewed and updated from the prior year’s analysis, where necessary.

All values were expressed in terms of today’s replacement value, and then rolled forward using an inflationary index (below) based on the estimated useful life of the asset.
Inflation – A 9% to 10% inflation factor was generally used based upon CPI indices, Construction Cost Indices for the Bay Area, and experiences in bidding projects of similar type.

Revenue Assumptions
Key revenue assumptions that affect funding sources are as follows:

City Capital Investment Funding (Attachment 1)
Park-In-Lieu Fees – A $2.05 million designation from Park-In-Lieu Fund Balance is included for the Boothbay Park improvements project for FY 2025-26.
Donations from Youth Sports Groups – $115,750 of donation reimbursements over the next seven years from various sports groups for Sea Cloud Park project are included in the 15-year CIP plan. Grants – The Public Works and Parks Department routinely seek grants to supplement funding of its projects. Until grant funds are identified for various projects and are reasonably expected to be available, additional grant funds are excluded from this analysis.

Streets-Related Funding (Attachment 2)
Measure A – This is a sales tax-based allocation. An assumption of $749,800 in FY 2022-2023 revenue is based on current collections with 2% annual growth.
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Gas Tax Section 2103 Funding – Revised estimates are based on the Gas Tax Swap legislation approved by the State in 2010, which swapped Prop 42 funding into the Gas Tax funding stream. Gas Tax (Sections 2105-2107) revenues are used to fund Public Works street maintenance operations, but Section 2103 funds must be used for roadway improvements and other transportation initiatives. Revenues for FY 2022-2023 are estimated to be $259,600 based on forecasts from the State and projected to increase 2% annually thereafter. Measure M – This measure, passed by voters in San Mateo County in November 2010, implemented a $10 fee added to vehicle license registrations of County residents for 25 years starting April 2011. Staff is projecting to receive $109,500 in FY 2022-2023 and an additional 2% annually thereafter. Funds are administered by C/CAG and are provided on a reimbursement-basis. These funds may be used for such things as pavement resurfacing, pothole repair, signs and striping, traffic signals, street sweeping, storm-inlet cleaning, and local shuttles.
SB 1 (Road Maintenance and Rehabilitation Account) – In 2017, the State passed the Road Repair and Accountability Act providing funding for local streets, roads, and other transportation uses. The funding was through a 12-cent per gallon increase to the gasoline excise tax and an additional 20-cent per gallon increase to the diesel excise tax, both of which took effect on November 1, 2017. An additional vehicle registration tax called “Transportation Improvement Fee” with rates based on the value of motor vehicles took effect on January 1, 2018. FY 2022-2023 SB1 revenues to the City are estimated at $637,100, with projected annual growth of 2% thereafter. Measure W – Measure W was passed by the voters of San Mateo County in November 2018. The measure took effect on July 2019 and is estimated to bring approximately $352,500 to Foster City in FY 2022-2023 and can be used to support traffic and traffic congestion relief related initiatives.
Grants – Until which time grant funds are identified for various projects and are reasonably expected to be available, grant revenues are excluded from this analysis.
15-Year Cash Flow Methodology
Foster City uses a funding methodology that looks at the total replacement value of assets which are scheduled to be replaced in the next 15-years, and then averages the replacement amount over the 15-year window. The funding 102
amounts are then compared to the available fund balance reserves and anticipated future revenues.

For the City CIP Fund, a minimum emergency reserve requirement for capital improvement projects is $2 million. There is no such reserve requirement for Street-Related Funding. The analysis also takes into consideration the projected Fund Balance in the Park-In-Lieu Fund to ensure that those funds are only spent on projects related to new parks or projects that increase the capacity of park amenities.

To the extent that there are not sufficient resources available from reserves and projected future revenues to maintain minimum reserves in the respected funding analysis, a transfer is identified from the City’s General Fund to ensure that the minimum fund balance reserve is met each year.

City Capital Investment Funding
Public Works, in consultation with the Parks and Recreation Department, prepared the 15-year project list considering replacement value, timing, and necessity. In the attached analysis, City staff recommends $3.5 million of annual General Fund transfers to the City Capital Investment Fund through FY 2028-2029, followed by $2.5 million annually thereafter for the remaining eight years of the 15-year forecast. This approach allows the City to maintain the minimum $2.0 million reserve and provide capacity for additional CIP projects.

Streets-Related Funding
In the attached analysis, there are sufficient revenues and existing reserves to fund future street projects. Accordingly, no annual funding requirement is needed from the City’s General Fund for Street-Related projects over the 15- year horizon.

Key Changes from the Prior Year (Attachment 4)
Based on direction from the City Council, the 10-year CIP model has been expanded from 10- to 15-years starting this budget cycle. For comparison purposes, fund requirements are increasing from $63.32 million to $68.9 over a 10-year period and to $88.1 million over a 15-year period. Staff approached programming the 15-year period by continuing to add the necessary projects beyond the 10-year period by another five years.
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The approximately $19 million variance from the 10-year to the 15-year period is attributed to $7.5 million in street resurfacing projects, $10 million in parks projects, and $2 million in building maintenance projects. Certain projects are recurring as scheduled maintenance, such as the street resurfacing, roofing, synthetic resurfacing and turf replacement projects.

The CIP includes a total of $40.8 million over the 15-year period for parks projects, many of which have been identified previously, with the understanding that these projects will need to be evaluated as part of the Parks Master Plan Study. Staff recommends that projects such as the Boothbay Park Family Playground and Picnic Site Improvements Project ($8 million) and many others be reconsidered and reprioritized after the Park Master Plan Study is completed.

Information about the detailed calculations performed and the 15-year projects are found in Attachments 1 to 8 to this report.

City staff seeks City Council direction for implementing the long-term funding strategy for the City’s capital projects and feedback on the list of staff-identified CIP projects.

FISCAL ANALYSIS
Based on a planned $40.6 million of CIP projects over the next seven years through FY 2028-2029 (excluding the Levee Project which is debt funded), staff recommends “freeing” up the $10 million placeholder for the Levee Project and direct staff to include annual General Fund transfers of $3.5 million over the next seven fiscal years followed thereafter by eight years of $2.5 million annual transfers.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This item is in alignment with City Council’s Vision and Mission Statements for a "Sustainable Foster City" under the economic sustainability framework. It is illustrative of the City's commitment to fiscal prudence and responsibility, in delivering a balanced budget, and to promote transparency throughout all its processes.
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Attachments:
Attachment 1 - City CIP Funding Strategy - 15-Year Fund Balance Analysis
Attachment 2 - Streets-Related Funding Strategy - 15-Year Fund Balance Analysis
Attachment 3 - 15-Year CIP Cost Projections - All Projects Attachment 4 - 15-Year CIP Comparison
Attachment 5 - Summary of Funding Sources and City CIP Fund Balance
Attachment 6 - 15-Year CIP for Buildings, Storm Water and Lagoon Projects
Attachment 7 - 15-Year CIP for Parks Projects
Attachment 8 - 15-Year CIP for Street Projects
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Long-Range CIP Planning Attachment 1 - 15 Year Fund Balance Analysis 15-Year Forecasts and Funding Options
FY 2022-2023 through FY 2031-2032 City Capital Investment Funding Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 10-Year Forecast (FYE 6/30) Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Cash Flow Beginning Fund Balance (1) 17,533,051 16,292,301 15,511,551 16,780,801 8,660,051 10,506,301 6,074,551 1,408,801 1,732,801 3,338,201 5,838,201 2,518,401 4,071,401 6,252,201 8,152,201 17,533,051 Less: Capital Improvement Expenditures from 15-Year Forecast (5,560,000) (4,300,000) (2,250,000) (13,800,000) (1,668,000) (8,905,000) (8,977,000) (2,311,000) (920,600) (640,000) (6,244,800) (1,827,000) (679,200) (600,000) (2,333,000) (61,015,600) Add: Funding Available from Other Non-General Fund Sources Park in Lieu Fees (2) - - - 2,050,000 - - - - - - - - - - - 2,050,000 Reimbursements from Youth Sports Groups (3) 19,250 19,250 19,250 19,250 14,250 13,250 11,250 - - - - - - - - 115,750 Developer Deposits - - - - - - - - - - - - - - - - Equipment Replacement Fund (4) - - - 110,000 - 385,000 300,000 135,000 - 290,000 425,000 200,000 360,000 - - 2,205,000 Building Maintenance Fund (5) 800,000 - - - - 575,000 500,000 - 26,000 350,000 - 680,000 - - 1,085,000 4,016,000 Add: Annual Long-Term CIP Funding from City General Fund (A) 7,568,000 7,568,000 7,568,000 7,568,000 7,568,000 7,568,000 7,568,000 6,568,000 6,568,000 6,568,000 6,568,000 6,568,000 6,568,000 6,568,000 6,568,000 105,520,000 Increase (Decrease) to Annual Long-Term CIP Funding from City General Fund due to Excess / Deficiency of Reserves (B) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (4,068,000) (61,020,000) Ending Fund Balance 16,292,301 15,511,551 16,780,801 8,660,051 10,506,301 6,074,551 1,408,801 1,732,801 3,338,201 5,838,201 2,518,401 4,071,401 6,252,201 8,152,201 9,404,201 9,404,201 Less Minimum Fund Balance Requirement (6) 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,001 2,000,002 2,000,003 2,000,004 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement 14, 292,301 13,511,551 14,780,801 6,660,051 8,506,301 4,074,551 (591,199) (267,199) 1,338,201 3,838,201 518,400 2,071,399 4,252,198 6,152,197 7,404,201 7,404,201 Net Annual Long-Term CIP Funding from City General Fund (A) - (B) 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 44,500,000 This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved FOOTNOTES:
(1) - Beginning Fund Balance is based on the Mid-Year financial review of the City CIP Fund and includes a $10 million commitment for potential Levee Project cost overruns. In order to moderate GF annual contributions, the $10 million is being made available for other CIP projects. (3) - The Parks and Recreation Department anticipates payments over the next 8 years will be forthcoming from Youth Sports Groups for reimbursement of the Sea Cloud Synthetic Turf Fields (CIP 301-659).
(2) - Use of Park-In-Lieu Fund Balance
(6) - Per City Council Policy, the minimum fund balance in the City CIP fund is $2 million. (5) - Funding for Building Maintenance projects is from the Building Maintenance Internal Service Fund. In FY 18/19, the City Council approved a transfer of $2,716,614 of FY 2017- 2018 General Fund Rollover Surplus and $150,923 each from the Water and Wastewater Enterprise Fund Balances for their apportioned share of citywide building maintenance charges.
(4) - Funding for various Parks projects include parks/playground equipment funded from the Equipment Replacement Internal Service Fund. 106
City of Foster City Attachment 2 - Streets Related Funding Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2022-2023 through FY 2031-2032 Streets-Related Funding Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 10-Year Forecast (FYE 6/30) Total 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Cash Flo w Beginning Fund Balance (1) 2,281,137 2,414,637 2,565,337 1,734,037 396,637 1,178,937 2,006,837 2,881,337 3,803,337 4,773,737 5,793,637 6,863,837 7,985,437 9,159,437 4,773,737 2,281,137 Less: Capital Improvement Expenditures from 15-Year
Forecast (1,975,000) (2,000,000) (3,025,000) (3,575,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (27,075,000) Add: Funding Available from Other Non-General Fund
Sources -
Measure A Revenues (2) 749,800 764,800 780,100 795,700 811,600 827,800 844,400 861,300 878,500 896,100 914,000 932,300 950,900 969,900 989,300 12,966,500 Gas Tax 2103 Revenues (3) 259,600 264,800 270,100 275,500 281,000 286,600 292,300 298,100 304,100 310,200 316,400 322,700 329,200 335,800 342,500 4,488,900 Measure M Revenues (4) 109,500 111,700 113,900 116,200 118,500 120,900 123,300 125,800 128,300 130,900 133,500 136,200 138,900 141,700 144,500 1,893,800 SB1 Road Maintenance and Rehabilitation Account
Revenues (5) 637,100 649,800 662,800 676,100 689,600 703,400 717,500 731,900 746,500 761,400 776,600 792,100 807,900 824,100 840,600 11,017,400 Measure W Revenues (6) 352,500 359,600 366,800 374,100 381,600 389,200 397,000 404,900 413,000 421,300 429,700 438,300 447,100 456,000 465,100 6,096,200 Add: Annual Long-Term CIP Funding from City General
Fund (A) 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 1,805,000 27,075,000 Increase (Decrease) to Annual Long-Term CIP Funding
from City General Fund due to Excess / Deficiency of
Reserves (B) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (1,805,000) (27,075,000) Ending Fund Balance 2,414,637 2,565,337 1,734,037 396,637 1,178,937 2,006,837 2,881,337 3,803,337 4,773,737 5,793,637 6,863,837 7,985,437 9,159,437 10,386,937 6,055,737 11,668,937 Less Minimum Fund Balance Requirement (7) - - - - - - - - - - - - - - - Excess Fund Balance Over Minimum Requirement 2, 414,637 2,565,337 1,734,037 396,637 1,178,937 2,006,837 2,881,337 3,803,337 4,773,737 5,793,637 6,863,837 7,985,437 9,159,437 10,386,937 6,055,737 11,668,937 General Fund
(A) - (B) - - - - - - - - - - - - - - - This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved FOOTNOTES:
(1) - Beginning Fund Balance is comprised of the following based on the Mid-Year Financial Review:

Measure A 1,858,591
Gas Tax (1,431)
Measure M (113,838)
SB1 40,715
Measure W 497,100
Total 2,281,137
(2) - Measure A revenues are projected to reach $735,100 in FY 21/22 and then increasing 2% annually thereafter (4) - Measure M revenues were the result of a transportation revenue measure passed by the voters of San Mateo County in November 2010. The measure is estimated to bring approximately $107,400 to Foster City in FY 21/22 and can be used to support transportation related initiatives. A 2% annual growth factor is assumed for this revenue stream. (7) - There is no separate minimum fund balance reserve established by City Council policy regarding streets related projects. The City has a $2 million minimum Capital Investment Fund Balance reserve for emergency contingencies. (3) - Gas Tax - Section 2103 funds are related to the Gas Tax Swap approved by the State in 2010 which replace the Prop 42 monies dedicated to roadway improvements and other transportation projects. Based on the January 2021 State estimates, the City is projected to receive $254,500 in FY 21/22. Staff is estimating these revenues to grow by 2% annually. (5) - SB 1 Road Maintenance and Rehabilitation Account (RMRA) taxes and fees were enacted into law on April 28, 2017. Effective November 1, 2017, SB 1 receipts from the taxes and fees will be deposited into the RMRA. These funds will be apportioned annually to cites and counties by the State Controller's Office for road maintenance and rehabilitation. Estimated revenues for FY 21/22 are $624,600.
(6) - Measure W revenues were the result of a transit and traffic congestion relief revenue measure passed by the voters of San Mateo County in November 2018. The measure took effect on July 2019 and is estimated to bring $345,600 to Foster City in FY 21/22. These monies can be used to support traffic and traffic congestion relief related initiatives. A 2% annual growth factors is assumed for this revenue stream.
107
City of Foster City Attachment 3 - 15 Year CIP Costs
Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2022-2023 through FY 2031-2032
Capital Project Cost Projections - 15-Year Forecast - All Projects Fund Balance Analysis - 15-Year Forecast (FYE 6/30)
Asset Category
Total Cash
Flow
Requirements 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Streets
Pavement Management and Park
Pathway Restoration 22,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Bicycle and Pedestrian
Improvements 325,000 75,000 250,000 - - - - - - - - - - - Bridges 850,000 - 400,000 450,000 - - - - - - - - - - - Street Lights/Traffic
Signals/Crosswalk Systems 3,400,000 475,000 100,000 1,000,000 1,825,000 - - - - - - - - - - - Sidewalks, Curbs and Gutters - - - - - - - - - - Traffic Study
- - - - - - - - - - - - - - - - Street Lights - - - - - - - - - - - - - - - - Traffic Signals - - - - - - - - - - - - - - - - Subtotal - Street Projects and
Eligible for Funding from
Transportation-related
Revenue Sources
(2)
27,075,000 1,975,000 2,000,000 3,025,000 3,575,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Streets - Park Pathways 1,200,000 - 300,000 300,000 300,000 300,000 - - - - - - - - - - Street Lights/Traffic
Signals/Crosswalk Systems 6,000,000 - - - 6,000,000 - - - - - - - - - - - Lagoons and Stormwater 4,650,000 350,000 2,000,000 300,000 2,000,000 Parks 36,584,600 800,000 1,300,000 1,950,000 5,340,000 1,368,000 7,645,000 6,177,000 2,176,000 894,600 - 5,819,800 947,000 319,200 600,000 1,248,000 Parks - Park In Lieu 2,050,000 - - - 2,050,000 - - - - - - - - - - - Parks - Equipment (Equipment
Replacement ISF) 2,205,000 - - - 110,000 - 385,000 300,000 135,000 - 290,000 425,000 200,000 360,000 - - Buildings - City CIP Fund 4,310,000 3,610,000 700,000 - - - - - - - - - - - - Buildings (Building Maintenance
ISF) 4,016,000 800,000 - - - - 575,000 500,000 - 26,000 350,000 - 680,000 - - 1,085,000 Subtotal - Other Projects
Funded from City Capital
Investment Fund (2)
61,015,600 5,560,000 4,300,000 2,250,000 13,800,000 1,668,000 8,905,000 8,977,000 2,311,000 920,600 640,000 6,244,800 1,827,000 679,200 600,000 2,333,000 Totals 88,090,600 7,535,000 6,300,000 5,275,000 17,375,000 3,168,000 10,405,000 10,477,000 3,811,000 2,420,600 2,140,000 7,744,800 3,327,000 2,179,200 2,100,000 3,833,000 Rounded
Average 15 Year Funding 5, 872,707 5,873,000
- Streets Funded Portion 1, 805,000 1,805,000 (To Attachment B) - City Capital Investment and non-
Streets Funded Portion 4,067,707 4,068,000 (To Attachment A) Levee Protection Planning and
Improvements Project
encumbrances (CIP 301-657)3
2,132,205 2,132,205
FOOTNOTES:
(1) - This analysis identifies the total annual estimated project costs for funding asset construction and/or replacement over a 10-year forecast. (2) - The cash flow requirements for each year are carried forward to the Fund Balance Analyses in Attachments B and A, respectively. (3) - The City is upgrading its levee system to meet new FEMA flood hazard standards at an estimated cost of $85 million. In June 2018, Foster City voters approved Measure P, a $90 million General Obligation Bond ballot measure to pay for this project.

Based on better than expected construction bids, the City updated its total project cost in 2020 to $85 million and issued GO Bonds for that amount. Since this project will be debt financed; it's excluded from the City CIP Funding Model. 108
ATTACHMENT 4 - 15-YEAR CIP COMPARISON
15-Year CIP Comparison
Ten Year Period
FY21/22 - 30/31
Ten Year Period
FY22/23 - 31/32
Increase
(Decrease) Notes
15 Year Period
FY22/23-36/37
Asset Category
Streets 16,900,000 16,525,000 (375,000) 1 -2.2% 24,025,000 Bridges 850,000 850,000 - 2 0.0% 850,000 Traffic System 10,650,000 9,400,000 (1,250,000) 3 -11.7% 9,400,000 Lagoon Structures 2,500,000 4,650,000 2,150,000 4 86.0% 4,650,000 Parks (including Park Equipment) 25,881,700 30,920,600 5,038,900 5 19.5% 40,839,600 Buildings (including Building
Replacement Fund) 6,536,500 6,561,000 24,500 6 0.4% 8,326,000 63,318,200 68,906,600 5,588,400 - 88,090,600 Detailed Analysis:

Note 1 (Streets)
Increase
(Decrease)
Rounded to
nearest $1,000
(375,000)
Note 2 (Bridges)
-
Note 3 (Traffic System Improvements)
(1,250,000)
Note 4 (Lagoon Structures)
2,150,000
Note 5 (Parks)
5,038,900
Note 6 (Buildings)
25,000
5,588,900
Based on modeling using the Pavement Management Technical Assistance Program (PTAP), the annual funding is needed to achieve the City's average PCI at 83 over the CIP term is $1,500,000. This funding also includes $300,000 annually for four years, to upgrade parks pathways, a reduction from the previously programmed 10 years.

Minor updates to timing and cost of projects, not significant Parks and Recreation staff forecasts that $30.9 million in parks projects are needed over the course of the next 10 years.

No additional changes to future funding requests for CIP 698 Traffic Signal Upgrades Project. $250k was funded in FY 21-22 for CIP 694-TRPP; and $1M was funded in FY21-22 for CIP 681- 4 new Traffic Signals.

No change from prior estimates. Staff estimates $850,000 is needed for inspections, design, repairs, and maintenance of the City's four bridges (Bicentennial, Foster City, Rainbow, and Shell) over the course of FY 23/24 to FY 24/25. (Pushed back from FY 22/23.)
Addition of third lagoon pump in FY 2023-2024
109
Attachment 5 - Suumary of Funding Sources and City CIP Fund Balance Summary of Funding Sources and City CIP Fund Balance
Total 15-year CIP Projects, FY 2022-23 to FY 3036-37 88,090,600 Funding Sources:

Street related funding sources 27,075,000
Park In-Lieu Fund 2,050,000
Equipment Replacement Fund 2,205,000
Building Replacement Fund 4,016,000 35,346,000
Balance funded by General Fund Transfers Out to City CIP Fund 52,744,600 Projected Beginning City CIP Fund Balance, 7/1/2022 17,533,051 Transfers In from General Fund 44,500,000
Reimbursements from Sports Groups 115,750
Projects to be funded by the General Fund (52,744,600)
Projected Ending City CIP Fund Balance, 6/30/2037 9,404,201 CIP Project Types
Project Type
Street related
funding
sources
Park In-Lieu
Fund
Equipment
Replacement
Fund
Building
Replacement
Fund General Fund Total
Streets and Bike/ Pedestrian Improvements/Park Pathways 22,825,000 7,200,000 30,025,000 Street Lights and Traffic Signals 3,400,000 3,400,000 Bridges 850,000 850,000
Lagoons and Storm water 4,650,000 4,650,000
Parks (including Park Equipment) 2,050,000 2,205,000 36,584,600 40,839,600 Buildings (including Building Replacement Fund) 4,016,000 4,310,000 8,326,000 27,075,000 2,050,00 0 2,205,00 0 4,016,00 0 52,744,60 0 88,090,60 0 Streets and Bike/ Pedestrian Improvements/Park Pathways (301-698) traffic signal system upgrades (2020-21) FY 2025-26 6,000,000 Park Pathways (FY 2023-24) 300,000
Park Pathways (FY 2024-25) 300,000
Park Pathways (FY 2025-26) 300,000
Park Pathways (FY 2026-27) 300,000
Total 7,200,000
Buildings (including Building Replacement Fund)
(301-685) HVAC Improvements In City Buildings (2018-2019) FY 2022-23
Funding: $1.66M (BMF $800K; GF $860K) 860,000
(301-700) Fuel Systems Improvements (2021-2022) FY 2022-23 Funding: $2.5M (GF $1.25M; Water $625K; Wastewater $625K) 1,250,000 (New) Government Center Rehabilitation (2022-23) 200,000 (New) Government Center Rehabilitation (2023-24) 500,000 (New) Install Rear Security Gates (2022-23) 500,000
(New) Renovate Elevators In City Buildings (2022-23) 800,000 (301-677) Library Exterior Improvements And Re-Landscaping (2017-2018) FY 2023-24 200,000
Total 4,310,00
0 |---------------------------------Funding Source -----------------------------------------| 110
Capital Improvement Program
Fiscal Year 2022-23 through Fiscal Year 2036-37
ATTACHMENT 6 - 15 YEAR CIP BUILDINGS/STORMWATER AND LAGOONS 1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 38
39 40
41 42
43 44
45 184
185
186
188
189
190

A B C DE FGH I J K LMNOPQRST
Category NO. Project Name Funding
Source
TOTAL - Not
Including Prior
Years
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37

BUILDING PROJECTS
C BD-01 (301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (2017-2018) CC 200,000 200,000 A BD-02 (301-685) HVAC IMPROVEMENTS IN CITY BUILDINGS (2018-2019) 1,660,000 1,660,000 BD-02-01 BD-02 Funding Source #1 - Building Maintenance Fund BMF 800,000 800,000 BD-02-02 BD-02 Funding Source #2 - City CIP Fund CC 860,000 860,000 A BD-03 (301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) 2,500,000 2,500,000 BD-03-01 BD-03 Funding Source #1 - City CIP Fund (50%) CC 1,250,000 1,250,000 BD-03-02 BD-03 Funding Source #2 - Water Enterprise Fund (25%) CW 625,000 625,000 BD-03-03 BD-03 Funding Source #3 - Wastewater Enterprise Fund (25%) CWW 625,000 625,000 B BD-04 (NEW) GOVERNMENT CENTER REHABILITATION (2022-2023) CC 700,000 200,000 500,000 C BD-05 (NEW) INSTALL REAR SECURITY GATES (2022-2023) CC 500,000 500,000 A BD-06 (NEW) RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) CC 800,000 800,000 (NEW CIP) REPLACE TEEN CENTER HVAC BMF 75,000 75,000 (NEW CIP) REPLACE CITY HALL ROOF BMF 300,000 300,000 (NEW CIP) REPLACE FIRE STATION ROOF BMF 200,000 200,000 (NEW CIP) REPLACE COUNCIL CHAMBERS HVAC BMF 500,000 500,000 (NEW CIP) REPLACE SENIOR WING HVAC BMF 26,000 26,000 (NEW CIP) REPLACE LIBRARY/COMMUNITY CENTER ROOF BMF 350,000 350,000 (NEW CIP) REPLACE CORPORATION YARD HVAC BMF 380,000 380,000 (NEW CIP) REPLACE TEEN CENTER ROOF BMF 300,000 300,000 (NEW CIP) REPLACE CITY HALL VARIABLE AIR VALVES (HVAC) BMF 200,000 200,000 REPLACE COMMUNITY CENTER/LIBRARY HVAC BMF 350,000 350,000 (NEW CIP) REPLACE CORPORATION YARD ADMINISTRATION ROOF BMF 120,000 120,000 (NEW CIP) REPLACE COUNCIL CHAMBERS TOP ROOF BMF 35,000 35,000 (NEW CIP) REPLACE COUNCIL CHAMBERS ZINC ROOF BMF 80,000 80,000 (NEW CIP) REPLACE POLICE STATION ROOF BMF 300,000 300,000 Totals (excludding the portion of the Fuel System project funded by CW and CWW) 8,326,000 4,410,000 700,000 - - - 575,000 500,000 - 26,000 350,000 - 680,000 - - 1,085,000 Category NO. Project Name Funding
Source TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035 -36 2036-37

STORMWATER / LAGOON PROJECTS
A SW-01 (301-690) SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (2022-2023) CC 150,000 150,000 A SW-02 (NEW) LAGOON INTAKE STRUCTURE AND PUMP STATION BUILDING REHAB STUDY (2023-2024) CC 200,000 200,000
A SW-03 (NEW) ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE (2023-2024) CC 2,000,000 2,000,000 (NEW) LAGOON DREDGING CC 2,300,000 300,000 2,000,000 4,650,000 150,000 2,200,000 - - - 300,000 2,000,000 - - - - - - - - NOTES:

PK-01 S-4 Turf Replacement Project approved for SB 68 grant reimbursement of $198,000 if completed by June 30, 2024 ST-01 $1.5 M annually will maintain streets at PCI 81-82 over ten year projection WA These projects were identified in the 20-year Water Master Plan Study.

WW These projects were identified in the 20-year Wastewater Master Plan Study. 111
Capital Improvement Program
Fiscal Year 2022-23 through Fiscal Year 2036-37
ATTACHMENT 7 - 15 YEAR CIP PARKS
1 48
49 50
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 76
77 78
79 80
81 82
83 84
85 86
87 88
89 90
91 92
93 94
95 96
97 98
186
187
189
190
191

A B C DE FGH I J K LMNOPQRST
Category NO. Project Name Funding
Source TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035 -36 2036-37

PARKS PROJECTS
B PK-01 (NEW) SEA CLOUD PARK S4 SYNTHETIC RESURFACING (2022-2023) CC/Grant* 800,000 800,000 B PK-02 (NEW) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (2023-2024) CC 800,000 800,000
C PK-03 (NEW) EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT (2023-2024) CC 500,000 500,000 C PK-04 (NEW) INSTALL NEW AMPHITHEATER SHADE STRUCTURE (2024-2025) CC 900,000 900,000 B PK-05 (NEW) BOOTHBAY PARK FAMILY PLAYGROUND AND PICNIC SITE IMPROVEMENTS (2024-2025) 8,050,000 1,050,000 7,000,000 PK-05-1 PK-08 Funding Source #1 - City CIP Fund CC 5,890,000 1,050,000 4,840,000 PK-05-2 PK-08 Funding Source #2 - Equipment Replacement Fund ERF 110,000 110,000 PK-05-3 PK-08 Funding Source #3 - Parks-in-Lieu Fund PIL 2,050,000 2,050,000 B PK-06 (NEW) DOG PARK SYNTHETIC TURF REPLACEMENT (2025-2026) CC 500,000 500,000 B PK-07 (NEW) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (2026-2027) CC 1,248,000 1,248,000 C PK-08 (NEW) AMPHITHEATER SYNTHETIC TURF RESURFACING (2026-2027) CC 120,000 120,000 (NEW) RESURFACING: TENNIS (EDGEWATER, CATAMARAN); BASKETBALL (CATAMARAN, VIBE, EDGEWATER) CC 320,000 320,000 (NEW) GULL PARK RENOVATION 3,810,000 3,810,000 PK-XX Funding Source #1 - City CIP Fund CC 3,550,000 3,550,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 260,000 260,000 (NEW) MARLIN PARK RENOVATION 3,900,000 3,900,000 PK-XX Funding Source #1 - City CIP Fund CC 3,775,000 3,775,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 125,000 125,000 (NEW) TURNSTONE PARK RENOVATION 1,722,000 1,722,000 PK-XX Funding Source #1 - City CIP Fund CC 1,622,000 1,622,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 100,000 100,000 (NEW) SUNFISH PARK RENOVATION 2,708,000 2,708,000 PK-XX Funding Source #1 - City CIP Fund CC 2,508,000 2,508,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 200,000 200,000 (NEW) PARKING LOT RESURFACING (Civic Center, South Drive; Police Station; Por Royal; Boat Park; Library/Community Center; Rec. Ctr. & South Parking lot; Senior Center Boothbay; Sea Cloud)
CC 600,000 600,000
(NEW) PORT ROYAL SYNTHETIC RESURFACING CC 647,000 647,000 (NEW) SEA CLOUD PARK S1, S2, B1 SYNTHETIC RESURFACING CC 800,000 800,000 (NEW) SHAD PARK RENOVATION 2,311,000 2,311,000 PK-XX Funding Source #1 - City CIP Fund CC 2,176,000 2,176,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 135,000 135,000 (NEW) GATESHEAD PARK RENOVATION CC 894,600 894,600 (NEW) REPLACE CATAMARAN PLAYGROUND ERF 150,000 150,000 (NEW) REPLACE KETCH PLAYGROUND ERF 140,000 140,000 (NEW) SEA CLOUD PARK S4 SYNTHETIC RESURFACING CC 1,294,000 1,294,000 (NEW) RESURFACING: TENNIS (Boothbay, LRP, Edgewater); BASKETBALL (Shad, Sunfish, Turnstone, Edgewater, Port Royal, Ketch) CC 304,800 304,800 (NEW) REPLACE PORT ROYAL PLAYGROUND ERF 125,000 125,000 (NEW) REPLACE SEA CLOUD PLAYGROUND ERF 200,000 200,000 (NEW) ERCKENBRACK PARK RENOVATION 4,321,000 4,321,000 PK-XX Funding Source #1 - City CIP Fund CC 4,221,000 4,221,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 100,000 100,000 (NEW) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING CC 647,000 647,000 (NEW) REPLACE SHOREBIRD PARK FITNESS COURT ERF 200,000 200,000 (NEW) DOG PARK SYNTHETIC RESURFACING CC 300,000 300,000 (NEW) RESURFACING: TENNIS (EDGEWATER, CATAMARAN); BASKETBALL (CATAMARAN, VIBE, EDGEWATER) CC 319,200 319,200 (NEW) REPLACE KILLDEER PARK PLAYGROUND ERF 180,000 180,000 (NEW) REPLACE FARRAGUT PLAYGROUND ERF 180,000 180,000 (NEW) PARKING LOT RESURFACING (Civic Center, South Drive; Police Station; Por Royal; Boat Park; Library/Community Center; Rec. Ctr. & South Parking lot; Senior Center Boothbay; Sea Cloud)
CC 600,000 600,000
(NEW) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING CC 1,248,000 1,248,000 40,839,600 800,000 1,300,000 1,950,000 7,500,000 1,368,000 8,030,000 6,477,000 2,311,000 894,600 290,000 6,244,800 1,147,000 679,200 600,000 1,248,000 NOTES:

WW These projects were identified in the 20-year Wastewater Master Plan Study. 112
Capital Improvement Program
Fiscal Year 2022-23 through Fiscal Year 2036-37
ATTACHMENT 8 - 15 YEAR CIP STREETS, BRIDGES, TRAFFIC SIGNALS 101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
185
186
187
189
190
191

A B C DE FGH I J K LMNOPQRS
Category NO. Project Name Funding
Source TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035 -36

STREET / TRAFFIC SIGNAL PROJECTS
A ST-01 (301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) 9,400,000 475,000 100,000 1,000,000 7,825,000 - ST-01-1 ST-01 Funding Source #1 - SB1 SB1 1,500,000 1,500,000 ST-01-2 ST-01 Funding Source #2 - Measure W MW 1,900,000 475,000 100,000 1,000,000 325,000 ST-01-3 ST-01 Funding Source #3 - City CIP CC 6,000,000 6,000,000 A ST-02 (301-703) STREET REHABILITATION (2021-2022) 1,500,000 1,500,000 ST-02-1 ST-02 Funding Source #1 - Measure A MA 1,500,000 1,500,000 ST-02-2 ST-02 Funding Source #2 - Gas Tax GT - - ST-02-3 ST-02 Funding Source #3 - Measure M MM - - ST-02-4 ST-02 Funding Source #4 - SB1 SB1 - - B ST-03 (NEW) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (2023-2024) SB1 850,000 400,000 450,000 A ST-04 (NEW) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2023- 2024) 1,800,000 - 1,800,000 - - - ST-04-1 ST-04 Funding Source #1 - Measure A MA 1,500,000 1,500,000 ST-04-2 ST-04 Funding Source #2 - Gas Tax GT - - ST-04-3 ST-04 Funding Source #3 - Measure M MM - - ST-04-4 ST-04 Funding Source #4 - SB1 SB1 - - ST-04-5 ST-04 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 C ST-05 (NEW) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (2024-2025) MA 325,000 75,000 250,000 A ST-06 (NEW) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2024- 2025) 1,800,000 - - 1,800,000 - - ST-06-1 ST-06 Funding Source #1 - Measure A MA 1,000,000 1,000,000 ST-06-2 ST-06 Funding Source #2 - Gas Tax GT 500,000 500,000 ST-06-3 ST-06 Funding Source #3 - Measure M MM - - ST-06-4 ST-06 Funding Source #4 - SB1 SB1 - - ST-06-5 ST-06 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 A ST-07 (NEW) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2025- 2026) 1,800,000 - - - 1,800,000 - ST-07-1 ST-07 Funding Source #1 - Measure A MA 500,000 500,000 ST-07-2 ST-07 Funding Source #2 - Gas Tax GT 500,000 500,000 ST-07-3 ST-07 Funding Source #3 - Measure M MM 300,000 300,000 ST-07-4 ST-07 Funding Source #4 - SB1 SB1 200,000 200,000 ST-07-5 ST-07 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 A ST-08 (NEW) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2026- 2027) 1,800,000 - - - - 1,800,000 ST-08-1 ST-08 Funding Source #1 - Measure A MA 800,000 800,000 ST-08-2 ST-08 Funding Source #2 - Gas Tax GT 200,000 200,000 ST-08-3 ST-08 Funding Source #3 - Measure M MM - - ST-08-4 ST-08 Funding Source #4 - SB1 SB1 500,000 500,000 ST-08-5 ST-08 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 (NEW) STREET REHABILITATION AND PARK PATHWAY RESTORATION (long term) 15,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 ST-XXX Funding Source #1 - Measure A MA 7,000,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 ST-XXX Funding Source #2 - Gas Tax GT 3,250,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 ST-XXX Funding Source #3 - Measure M MM 1,000,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 ST-XXX Funding Source #4 - SB1 SB1 3,750,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 ST-XXX Funding Source #5 - City CIP (Park Pathways) CC - - - - - - - - - - 34,275,000 1,975,000 2,300,000 3,325,000 9,875,000 1,800,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 NOTES:

WW These projects were identified in the 20-year Wastewater Master Plan Study. 113
DATE: March 28, 2022

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim District Manager

FROM: Louis Sun, Public Works Director
Edmund Suen, Finance Director

SUBJECT: LONG-TERM CAPITAL IMPROVEMENT PROJECTS

PROGRAM AND FUNDING PLAN - WATER AND
WASTEWATER ENTERPRISE FUNDS - FY 2022-2023 TO FY
2036-2037

RECOMMENDATION
It is recommended that the EMID Board of Directors provide direction on the funding strategy for the Long-Term Capital Improvement Program (CIP) for the Water and Wastewater Enterprise Funds and the list of CIP Projects over the next 15-year period.

EXECUTIVE SUMMARY
In 2010, the EMID Board approved a funding strategy for its Water and Wastewater CIPs in the form of a Long-Term CIP Funding program. This program has historically analyzed potential future CIP projects over a 10-year capital expenditure forecast period and funded those needs on an annual basis at 1/10th of the unfunded capital expenditures obligation. This was approved in recognition of the District’s “pay-as-you-go” approach to funding capital projects. The District prefers not to use debt financing for its capital projects unless it is necessary due to the magnitude of the project (e.g., the Wastewater Treatment Plant project aka WWTP). As part of its budget 114
discussions last year, the District Board directed staff to expand the 10-year forecast to 15 years effective FY 2022-2023.

District staff reviewed the long-term CIP analysis and made some modifications in regards to the funding amounts and timing of future projects and in consideration of the 5-Year Capital Improvement Project Plan proposed under a separate Agenda item this evening. The Capital Improvement Reserve balances in both the Water and Wastewater funds have been taken into consideration in determining the funding necessary to ensure that the reserve balances stay above the minimum $2.0 million emergency reserve level in both Funds.

With the completion of the 15-year CIP for the Water and Wastewater enterprises, staff identified $4.875 million of Water CIP projects over the next two years through FY 2023-2024. As a result, staff recommends scaling Water CIP funding to $2.5 million in FY 2022-2023, $1.75 million in FY 2023- 2024, before leveling it at $1 million for the remaining 13 years of the 15-year CIP Plan.

In the Wastewater Enterprise, staff has identified $18.07 million of CIP projects (including that portion of the WWTP project that is cash funded) over the next three years through FY 2024-2025. As a result, staff also recommends scaling CIP funding to $5.25 million over those three years before leveling it to $2.1 million for the remaining 12 years of the 15-year CIP Plan.

The District is responsible for 24.12% of the cost of the joint Wastewater Treatment Plant (WWTP) project, with the City of San Mateo responsible for the remaining 75.88%. The joint WWTP is an aging infrastructure and the City of San Mateo is under a 2009 cease and desist order for sanitary sewer overflows. As a result, San Mateo, as the lead agency for the project, is currently undertaking a 10-year integrated Wastewater Master Plan (Clean Water Program) for the rehabilitation of the WWTP for which the District will be responsible for its proportionate share of costs of approximately $153 million based on the January 2022 update from San Mateo. Much of these costs require debt financing. Thus far, the District has secured wastewater revenue bonds, Wastewater Revenue Notes, and a WIFIA (Water Infrastructure Finance and Innovation Act) loan for the project. Additional financing in the form a CA Water Board State Revolving Fund (SRF) is currently being evaluated. The debt service costs associated with the financing for the WWTP project are expected to be recovered over time 115
through increases to the District’s wastewater rates. All of the above items have been incorporated into the FY 2022-2023 Water and Wastewater Rate Models that are also on the agenda for consideration this evening.

BACKGROUND
The EMID Board of Directors has made it a priority to ensure that the District’s infrastructure is well maintained on an ongoing basis. Such proactive maintenance and repair of infrastructure ensures that key systems are operating at peak levels, promotes safety, provides for a continuity of services to the community, maintains property values, and maintains the quality of life that the community has come to expect.

In the District’s early years, capital improvement efforts were primarily focused on the construction of new infrastructure. Now that the District is at build-out, there has been a transition from new construction to infrastructure maintenance (with the exception of the WWTP project). This affects how we characterize and fund future CIP programs.

Maintenance vs. CIP
Managing the District’s infrastructure manifests itself in the following ways:
Proactive Maintenance Activities – The preventative maintenance efforts of the District’s Maintenance crews on an ongoing basis reduce the overall future costs of District infrastructure. These ongoing operating costs offset the magnitude and expense of future infrastructure replacement projects.
Recurring Capital Improvement Projects (CIP) – Some CIPs are considered “recurring” and amount to significant repair work, such as pipe repairs, water valve replacements, and water tank lining and coating projects. The underlying infrastructure is still usable, but these larger maintenance efforts help to extend the useful lives of the underlying infrastructure.
Infrastructure Replacement/Construction Projects – Other CIPs are considered so significant in nature that the entire infrastructure is replaced or built anew. An example of this is the Lift Station rehabilitation projects.
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The District has historically considered the latter two categories (Recurring CIPs and Infrastructure Replacement/Construction) as Capital Improvement Projects, and has funded these projects out of specifically designated CIP funds within each respective Enterprise fund. The District has also incorporated long-term CIP projects in its rate models so that the burden of such projects can be planned for and incorporated into the rate structure to mitigate the impact on customers over a longer period.

ANALYSIS
Approach
The District hired Bartle Wells Associates (BWA) to update the water and wastewater rate model to include the fiscal impacts of the WWTP project on the Long-Term CIP Funding analysis and in light of current maintenance efforts, assessment of replacement requirements, and replacement costs in the following categories:

Water System
Fire Hydrants – these important safety amenities are included in the water operations
Water Infrastructure – this includes pipes, valves, seismic retrofits, water tank improvements (not replacement), and other elements of the delivery of water from the point of the District’s water structures to delivery at customers’ properties
Water Structures – this includes the four (4) water tanks and the booster pump station located at the Corporation Yard
Wastewater System
Pipelines – the primary means of collecting wastewater from customers and transporting it to the Wastewater Treatment Plant in San Mateo
Valves – which serve as critical junction and shutoff points within the system
Lift Stations – since Foster City is relatively flat, Lift Stations and their accompanying generators assist wastewater to flow through the system to the wastewater treatment plant where gravity would otherwise serve this purpose
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Parallel Force Mains – critical elements at key points that connect the lift stations together in one system
Next, District staff considered the level of maintenance and serviceability of capital assets in order to determine the appropriate estimated useful lives of each asset. District staff also considered the relative costs associated with such maintenance to evaluate the cost-effectiveness of such maintenance efforts.

Assumptions
Funding Sources
In each category, initial assumptions were made as to the funding sources of various assets. It is unlikely that very many new infrastructures, other than the WWTP will be constructed. Nevertheless, any new construction, such as the WWTP, is assumed to be funded from new sources (e.g., debt financing, development fees). In addition, if an asset replacement value was considered so significant that the only effective financing option was to use debt financing (in the form of bonds, federal and state programs, bank loans, etc.), or if those assets were funded from other sources (e.g., Equipment Replacement Funds), those assets were excluded. Assets excluded in each category (including the assumed alternate funding source in parentheses) were as follows:

Water System
Fire Hydrants – hydrants do not typically call for replacement; operating funds are used to replace hydrants which are damaged or require repair
Valves – CIP funding is needed to replace, rehabilitate or repair various infrastructure elements such as pipes, valves, and other elements mentioned above when necessary; system wide
replacement of each element type is not anticipated short of a catastrophic event
Water Structures – water tanks have very long lives; lining in the three steel tanks requires CIP funding approximately every 15 years Water Meters – funding for meters that are replaced as part of CIPs is included in the analysis. Some water meter replacements that are 118
in the Equipment Replacement Fund or replaced during maintenance operations are not considered as part of this analysis
Wastewater System
Pipes – CIP funding for pipes requiring rehabilitation or repair; system-wide replacement of pipes is not anticipated short of a catastrophic event
Valves – valve replacement costs are included in CIP plans. Lift Stations – lift station rehabilitation projects require CIP funding; generators, their transfer switches, and portable generators are funded through Equipment Replacement funds and are not
considered as part of this analysis
Parallel Force Mains – force main replacement requires CIP funding Wastewater Treatment System (WWTP) – rehabilitation that San Mateo is undertaking under its 10-year integrated Wastewater Master Plan (Clean Water Program) for which the District will be responsible for its proportionate share of costs of approximately $153 million.

Expenditure Assumptions
The key expenditure assumptions were:
Replacement Values – replacement values were reviewed and updated from the prior year’s analysis, if necessary. All values were expressed in terms of future replacement, taking into consideration factors such as inflation (see below), project size, timing of replacement/repair/rehabilitation, and construction contingency funding.
Inflation – A 9% to 10% inflation factor was generally used based upon CPI indices, Construction Cost Indices for the Bay Area, and experience in bidding projects of a similar type.

Revenue Assumptions
In both the cases of Water and Wastewater rates, CIP funding is considered as part of the “fixed costs” of each system and is included in the existing rate model which projects costs over a 10-year period using a “pay-as-you-go” philosophy. The rate model does not reflect the actual 5-Year or 15-Year CIP 119
expenditures on CIPs; rather it reflects the annual planned funding from this 15-Year analysis.
15-Year Capital Expenditure Funding Methodology
The District uses a funding methodology that looks at the total replacement value of assets which are scheduled to be replaced in the next 15-year window, and then averages the replacement amount over the 15-year window. The Public Works Department prepared the 15-year project list considering replacement value, timing, and necessity.

Based upon District staff’s review of the components of the 15-Year CIP funding needs, the scenario generates an annual CIP amount averaging $1.14 million for Water Infrastructure, and $2.78 million for Wastewater Infrastructure (excluding WWTP, which is currently funded by various debt issuances).

This funding amount is then compared to the available fund balance reserves, and those reserves are compared to the cash flow requirements to fund projects in the 15-year forecast. The EMID Board of Directors' minimum emergency reserve requirement for capital improvement projects is $2.0 million each for the Water Capital Investment Fund (aka Water Capital Improvement Projects Fund) and the Wastewater Capital Investment Fund (aka Wastewater Capital Improvements Project Fund), respectively. The 15- Year Fund Balance analysis then reduces the 15-Year Average CIP funding to maintain the Capital Investment Reserves in each fund comfortably above the $2 million minimum reserve threshold over the 15-year forecast.

In the attached analysis, the Water Capital Investment funding requirement is heavy in the first two years with $4.875 million of recommended projects. Therefore, the proposed annual funding for the Water program is $2.5 million in the first year, $1.75 million in the second year, followed by $1.0 million for the remaining 13 years. The proposed annual funding for the Wastewater program is also scaled due to the value of projects in the first three years of the 15-year CIP Plan. As a result, the annual funding for the first three years is $5.25 million before leveling down to $2.1 million for the following 12 years. Since the WWTP is a shared project with the City of San Mateo and is currently funded by wastewater revenue bonds and notes, followed by a WIFIA loan in subsequent years, District staff has intentionally 120
segregated it in the 15-year analysis and excluded the financed portion of the project from the Reserve funding.

Key Changes from Prior Year’s Analysis
Key changes in this year’s analysis from the prior year’s analysis include:
Staff approached programming the 15-year period by continuing to add the necessary projects beyond the 10-year period by another five years while making adjustments to projects previously proposed in the 10-year period as needed.
Projects that recur as scheduled maintenance are programmed into the CIP on a regular basis as required.

The detailed calculations performed and the list of 15-year projects are found in Attachments 1 to 6 to this report.

District staff seeks EMID Board direction for implementing the long-term funding strategy for the District’s (Enterprise) capital projects and feedback on the list of staff recommended CIP projects.

FISCAL IMPACT
Based upon the 15-year CIP analysis, staff identified $4.875 million of Water CIP projects over the next two years through FY 2023-2024. As a result, staff recommends scaling Water CIP funding at $2.5 million in FY 2022-23, $1.75 million in FY 2023-2024, before leveling it at $1 million for the remaining 13 years of the 15-year CIP Plan.

In the Wastewater Enterprise, staff has identified $18.07 million of CIP projects (excluding the debt financed portion of the WWTP project) over the next three years through FY 2024-2025. As a result, staff also recommends scaling CIP funding at $5.25 million over those three years before leveling it at $2.1 million for the remaining 12 years of the 15-year CIP Plan.

The Capital Improvement Reserve balances in both the Water and Wastewater funds have been taken into consideration in determining the funding necessary to ensure that the reserve balances stay above the minimum $2.0 million emergency reserve level in both Funds. 121

Attachments:
Attachment 1 – Water Enterprise CIP Funding Strategy – 15-Year Fund Balance Analysis
Attachment 2 – Water Enterprise 15-Year CIP Costs
Attachment 3 – Wastewater Enterprise CIP Funding Strategy – 15- Year Fund Balance Analysis
Attachment 4 – Wastewater Enterprise 15-Year CIP Costs Attachment 5 – Water and Wastewater Enterprises 15-Year CIP Comparison
Attachment 6 – Water and Wastewater 15-Year CIP Projects 122
Estero Municipal Improvement District Attachment 1 - Water Enterprise CIP Funding Strategy Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2022-2023 through FY 2036-2037
Water Enterprise Fund
Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) 15 year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total Beginning Fund Balance 2,749,086 3,203,139 3,303,139 3,803,139 4,003,139 4,083,139 4,583,139 5,083,139 5,583,139 6,083,139 6,333,139 6,583,139 6,833,139 7,083,139 7,333,139 2,749,086 Less: Capital Improvement Expenditures (3,225,000) (1,650,000) (500,000) (800,000) (920,000) (500,000) (500,000) (500,000) (500,000) (750,000) (750,000) (750,000) (750,000) (750,000) (4,250,000) (17,095,000) Add: Other Funding Sources
Water Connection Fees Beginning Fund Balance 681,198 - - - - - - - - - - - - - - 681,198 New Water Connection Fees 497,855 - - - - - - - - - - - - - - 497,855 Add: Annual Long-Term CIP Funding from Operations (1) 3,640,000 2,890,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 2,140,000 34,350,000 (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (1,140,000) (17,100,000) Ending Fund Balance 3,203,139 3,303,139 3,803,139 4,003,139 4,083,139 4,583,139 5,083,139 5,583,139 6,083,139 6,333,139 6,583,139 6,833,139 7,083,139 7,333,139 4,083,139 4,083,139 Less: Water Connection Fees Fund Balance 1,179,053 1,179,053 1,179,053 1,179,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 259,053 Less Minimum Fund Balance Requirement 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement 24,086 124,086 624,086 824,086 1,824,086 2,324,086 2,824,086 3,324,086 3,824,086 4,074,086 4,324,086 4,574,086 4,824,086 5,074,086 1,824,086 1,824,086 Net Annual Long-Term CIP Funding from Operations (1) - (2 2,500,000 1,750,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 17,250,000 NOTE:

This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved Increase (Decrease) to Annual Long-Term CIP Funding due to Excess / Deficiency of Reserves (2)
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Estero Municipal Improvement District Attachment 2 - Water Enterprise 15-Year CIP Costs Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2022-2023 through FY 2036-2037 Water Enterprise Fund Funding Strategy
15-Year Capital Expenditure Requirements
Capital Expenditure Requirements - 15-Year Forecast (FYE 6/30) Asset Category
Total Cash
Flow
Requirements 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Fire Hydrants (1) - - - - - - - - - - - - - - - - Water Tanks 5,100,000 1,600,000 - - - - - - - - - - - - - 3,500,000 Fuel System Improvements 625,000 625,000 - - - - - - - - - - - - - - Engines and Pump Replacement 375,000 - - - - - 375,000 - - - - - - - - Water Facilities Seismic Vulnerability
Assessment 125,000 - - - - - 125,000 - - - - - - - - Other Water Infrastructure
Improvements (water transmission and
distribution systems) 4,000,000 1,000,000 1,000,000 500,000 500,000 - - 500,000 500,000 - - - - - - - Emergency Bypass Installation at
Transmission Main 300,000 - - - 300,000 - - - - - - - - - - - Cathodic Protection Anode Beds 500,000 - - - - - - - - 500,000 - - - - - - Water Connection Fees -Coating on
Transmission Main 920,000 - - - - 920,000 - - - - - - - - - - Water System Improvements 4,500,000 - - - - - - - - - 750,000 750,000 750,000 750,000 750,000 750,000 Chlorine Analyzers and Auto Flushers 650,000 - 650,000 - - - - - - - - - - - - -
Totals 17,095,000 3,225,000 1,650,000 500,000 800,000 920,000 500,000 500,000 500,000 500,000 750,000 750,000 750,000 750,000 750,000 4,250,000 -
Average 15 Year Funding 1,139,667
say 1,140,000
NOTE:

This strategy identifies the average annual cash flow requirements for funding asset replacement over a 10-year forecast. (1) - Fire hydrants are replaced as needed through the annual operating budgets. Short of a major catastrophe, it is assumed operating budgets will handle replacements
(2) - Projects identified by Water Master Plan (approved in February 2020), are based on approximate budgeting numbers and are subject to change based on Staff's analysis in the current year
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Estero Municipal Improvement District Attachment 3 - Wastewater Enterprise CIP Funding Strategy Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2021-2022 through FY 2030-2031
Wastewater Enterprise Fund
Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) 15 year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Total Beginning Fund Balance 4,520,282 7,239,949 6,975,649 3,555,249 3,387,349 5,278,049 4,178,049 4,588,049 6,688,049 3,088,049 2,988,049 5,088,049 7,188,049 3,088,049 2,988,049 4,520,282 Less: Capital Improvement Expenditures (3,880,800) (5,514,300) (8,670,400) (2,267,900) (209,300) (3,200,000) (1,690,000) - (5,700,000) (2,200,000) - - (6,200,000) (2,200,000) - (41,732,700) Add: Other Funding Sources
Wastewater Connection Fees Beginning Fund Balance 149,971 - - - - - - - - - - - - - - 149,971 New Wastewater Connection Fees 1,200,496 - - - - - - - - - - - - - - 1,200,496 Add: Annual Long-Term CIP Funding from Operations (1) 8,033,000 8,033,000 8,033,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 4,883,000 82,695,000 Increase (Decrease) to Annual Long-Term CIP Funding due to E (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (2,783,000) (41,745,000) Ending Fund Balance 7,239,949 6,975,649 3,555,249 3,387,349 5,278,049 4,178,049 4,588,049 6,688,049 3,088,049 2,988,049 5,088,049 7,188,049 3,088,049 2,988,049 5,088,049 5,088,049 Less: Wastewater Connection Fees Fund Balance 1,350,467 1,350,467 1,350,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 50,467 Less Minimum Fund Balance Requirement 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement 3,889,482 3,625,182 204,782 1,336,882 3,227,582 2,127,582 2,537,582 4,637,582 1,037,582 937,582 3,037,582 5,137,582 1,037,582 937,582 3,037,582 3,037,582 Net Annual Long-Term CIP Funding from Operations (1) - ( 5,250,000 5,250,000 5,250,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 40,950,000 NOTE:

This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved 125
Estero Municipal Improvement District Attachment 4 - Wastewater Enterprise 15-Year CIP Costs Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2022-23 through FY 2036-37
Wastewater Enterprise Fund
Funding Strategy
15-Year Cash Flow Model
Cash Flow Requirements - 15-Year Forecast (FYE 6/30)
Asset Category
Total Cash
Flow
Requirements 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Lift Stations - Phase 6 7,300,000 - 600,000 6,700,000 - - - - - - - - - - - - Lift Stations - Phase 7 3,200,000 - - - 3,200,000 - - - - - - - - - Lift Stations - Phase 8 5,700,000 - - - - - - 5,700,000 - - - - - - Lift Stations - Phase 9 6,200,000 - - - - - - - - - - 6,200,000 - - Sanitary Sewer Force Main
Rehabilitation 500,000 500,000 - - - - - - - - - - - - - Sanitary Sewer System
Improvements 400,000 - 400,000 - - - - - - - - - - - - - Sanitary Sewer Manhole
Replacements 800,000 - - 300,000 500,000 - - - - - - - - - - - Wastewater Connection Fees -
Sanitary Sewer Manhole
Replacements 1,300,000
- -
- 1,300,000 - - - - - - - - - - - Backup Power Study 60,000 - - - - 60,000 - - - - - - - - - - Wastewater Collection System
Improvements 6,090,000 - - - - - - 1,690,000 - - 2,200,000 - - - 2,200,000 - Fuel System Improvements 625,000 625,000 - - - - - - - - - - - - - - Waste Water Treatment Plant 1 - - - - - - - - - - - - - - - - Waste Water Treatment Plant funded
by Operating Fund 2 8,680,126 2,439,287 4,197,752 1,588,899 386,360 67,828 - - - - - - - - - - Waste Water Treatment Plant EMID
only costs 3 877,500 316,500 316,500 81,500 81,500 81,500 - - - - - - - - - - Totals 41,732,626 3,880,787 5,514,252 8,670,399 2,267,860 209,328 3,200,000 1,690,000 - 5,700,000 2,200,000 - - 6,200,000 2,200,000 - Average 15 Year Funding 2,782,175
say 2,783,000
Waste Water Treatment Plant
project encumbrances 1
48,764,005 39,468,163 7,252,754 1,588,900 386,360 67,828 - - - - - - - - - - NOTE:

This strategy identifies the average annual cash flow requirements for funding asset replacement over a 15-year forecast. (1) The District and the City of San Mateo are undertaking the rehabilitation of its jointly owned wastewater treatment plant (WWTP) located in San Mateo. Under the terms of the Joint Powers Agreement, EMID is responsible for 24.12% and the City of San Mateo is responsible for 75.88% of the WWTP costs. The estimated District apportionment of total project cost is $153.6 million through FY 26/27. The project requires debt financing including the issuance of Revenue Bonds and anticipated WIFIA loans. Debt service costs are expected to be recovered over time through increases to the District's wastewater rates.
(2) The District is able to pay some joint WWTP costs from its Operating Fund working capital instead of using financing as a result savings from lower than anticipated interest rates on its debt. (3) The District also has EMID only costs consisting of consultants (EKI, Hydroscience, etc.) and legal counsel. 126
ATTACHMENT 5 - 15-YEAR CIP COMPARISON
15-Year CIP Comparison
Ten Year Period
FY 21/22 - 30/31
Ten Year Period
FY 22/23 - 31/32
Increase
(Decrease) Notes
Fifteen Year
Period
FY 22/23 - 36/37
Water Enterprise:

Roof replacement - Corporation Yard 100,000 - (100,000) 1 - Two Engines and Pump Replacement at Water Booster Pump Station 375,000 375,000 - 1 375,000 Water Tanks and Facilities Replacement (CIP 405-660) 900,000 1,600,000 700,000 2 1,600,000 Water Transmission and Distribution Improvements 4,250,000 4,000,000 (250,000) 2 4,000,000 Chlorine Analyzers and Auto Flushers 650,000 650,000 - 2 650,000 Coating on 24-inch Transmission Main at Seal Slough Bridge - 920,000 920,000 2 920,000 Fuel System Improvements 437,500 625,000 187,500 2 625,000 Water Facilities Seismic Vulnerability Assessment 125,000 125,000 - 3 125,000 Emergency Bypass Installation at Transmission Main - 300,000 300,000 3 300,000 Replacement of Cathodic Protection Anode Beds - 500,000 500,000 4 500,000 Water System Improvements Project - 750,000 750,000 5 4,500,000 Water Tank Inspection and Recoating - - - 6 3,500,000 Total 6,837,500 9,845,000 3,007,500 17,095,000 Wastewater Enterprise:

Lift Station 59 Effluent Line Improvements (CIP 455-695) 1,650,000 - (1,650,000) 1 Emergency Generator Replacements 885,000 - (885,000) 1 Generators (Equipment Replacement Fund) 1,415,000 - (1,415,000) 1 Sanitary Sewer Manhole Replacements 2,100,000 2,100,000 - 1 2,100,000 Roof replacement - Corporation Yard 100,000 - (100,000) 1 Sanitary Sewer Lift Stations (Phase 6 and 7) 10,500,000 10,500,000 - 1 10,500,000 Sanitary Sewer System Improvements - 400,000 400,000 2 400,000 Shell Bridge Sanitary Sewer Force Main Rehabilitation - 500,000 500,000 2 500,000 Fuel System Improvements 437,500 625,000 187,500 2 625,000 Sanitary Sewer Lift Stations (Phase 8 and 9) - 5,700,000 5,700,000 7 11,900,000 Backup Power Study 60,000 60,000 - 8 60,000 Wastewater Collection System Improvements 1,750,000 3,890,000 2,140,000 9 6,090,000 WWTP Joint Costs to be funded by surplus Operating Fund Working Capital - 8,680,126 8,680,126 10 8,680,126 WWTP EMID only costs 939,000 877,500 (61,500) 11 877,500 19,836,500 33,332,626 13,496,126 41,732,626 Detailed Analysis:

Water Enterprise
Note 1
No additional funding proposed for this project in the 15-year term Note 2
Funding requirements detailed in 5-Year CIP Project Descriptions Note 3
Funding for Water Facilities Seismic Vulnerability Assessment is planned for FY 27/28; Emergency Bypass Installation at Transmissioin Main in FY 25/26 Note 4
Funding for Cathode Protection Anode Bed Replacement scheduled for FY 30/31 Note 5
Funding for Water System Improvements Project scheduled for FY 31/32 - FY 36/37 Note 6
Funding for Water Tank Inspection and Recoating Project scheduled to begin FY 36/37 Wastewater Enterprise:

Note 1
No additional funding proposed for this project in the 15-year term Note 2
Funding requirements detailed in 5-Year CIP Project Descriptions Note 7
Funding for is planned for FY 30/31 for Phase 8 and FY 34/35 for Phase 9 Note 8
Funding source changed to Wastewater Connection Fee Revenue Note 9
Funding for scheduled for projects in FY 28/29; FY 31/32; FY 35/36 Note 10
WWTP joint costs to be funded by surplus Operating Fund working capital from lower than anticipated interest rates from various financings Note 11 (Wastewater Treatment Plant EMID costs)
EMID specific costs for Wastewater Treatment Plant project to be paid with enterprise revenues and not with San Mateo-Foster City PFA loan.
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Capital Improvement Program
Fiscal Year 2022-23 through Fiscal Year 2036-37
Attachment 6 - Water and Wastewater 15-Year CIP Projects 1 146
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A B C DE FGH I J K LMNOPQRS T
Category NO. Project Name Funding
Source TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035 -36 2036-37

WATER PROJECTS
A WA-01 (405-660) WATER TANKS AND FACILITIES IMPROVEMENTS (2019-2020) CW 1,600,000 1,600,000 A WA-02 (405-704) WATER TRANSMISSION AND DISTRIBUTION SYSTEMS IMPROVEMENTS (2021-2022) CW 4,000,000 1,000,000 1,000,000 500,000 500,000 500,000 500,000 A WA-03 (NEW) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (2023-2024) CW 650,000 650,000
A WA-04 (NEW) PERMANENT EMERGENCY BYPASS ITRANSMISSION MAIN ON E. THIRD AVE. (2025-2026) CW 300,000 300,000
B WA-05 (NEW) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (2026-2027) WDIF 920,000 920,000
A BD-03 (301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) CW 625,000 625,000 (NEW) TWO ENGINES AND PUMP REPLACEMENT AT WATER BOOSTER PUMP STATION CW 375,000 375,000
(NEW) WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT CW 125,000 125,000 (NEW) REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS CW 500,000 500,000 (NEW) WATER TANK INSPECTION AND RECOATING CW 3,500,000 3,500,000 (NEW) WATER SYSTEM IMPROVEMENTS PROJECT CW 4,500,000 750,000 750,000 750,000 750,000 750,000 750,000 17,095,000 3,225,000 1,650,000 500,000 800,000 920,000 500,000 500,000 500,000 500,000 750,000 750,000 750,000 750,000 750,000 4,250,000 -
Category NO. Project Name Funding
Source TOTAL 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035 -36 2036-37

WASTEWATER PROJECTS
A WW-01 (401-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016) CWW 49,641,505 39,784,664 7,569,253 1,670,400 467,860 149,328 WW-01-1 WW-01 Funding Source #1 - WIFIA Loan/2021 District Notes WW Rev Bond 7,039,479 7,039,479 - - - -
WW-01-2 WW-01 Funding Source #2 - SRF/Revenue Bonds 2022 WW Rev Bond 33,044,400 29,989,399 3,055,001 - - -
WW-01-3 WW-01 Funding Source #3 - Wastewater Fund for WWTP Joint Costs District Surplus Cash CWW 8,680,126 2,439,286 4,197,752 1,588,900 386,360 67,828 WW-01-4 WW-01 Funding Source #3 - Wastewater Fund for WWTP District Costs Only CWW 877,500 316,500 316,500 81,500 81,500 81,500 A BD-03 (301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) CWW 625,000 625,000 A WW-02 (455-696) SANITARY SEWER SYSTEM IMPROVEMENTS (2020-2021) CWW 400,000 400,000 A WW-03 (NEW) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (2022- 2023) CWW 500,000 500,000
A WW-04 (NEW) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (2023-2024) CWW 7,300,000 600,000 6,700,000 A WW-05 (NEW) SANITARY SEWER MANHOLE REPLACEMENTS (2024-2025) 2,100,000 300,000 1,800,000 WW-05-01 WA-05 Funding Source #1 - Wastewater Fund CWW 800,000 300,000 500,000 WW-05-02 WA-05 Funding Source #2 - Wastewater Development Impact Fees WWDIF 1,300,000 1,300,000 B WW-06 (NEW) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (2026-2027) CWW 60,000 60,000
(NEW) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 7 CWW 3,200,000 3,200,000 (NEW) WASTEWATER COLLECTION SYSTEMS IMPROVEMENTS CWW 6,090,000 1,690,000 2,200,000 2,200,000 (NEW) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 8 CWW 5,700,000 5,700,000 (NEW) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 9 CWW 6,200,000 6,200,000 Total CIP Projects Excluding Debt Financed Portion of the WWTP Project 41,732,626 3,880,786 5,514,252 8,670,400 2,267,860 209,328 3,200,000 1,690,000 - 5,700,000 2,200,000 - - 6,200,000 2,200,000 - -
NOTES:

WA These projects were identified in the 20-year Water Master Plan Study.

WW These projects were identified in the 20-year Wastewater Master Plan Study. 128
DATE: March 28, 2022

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim District Manager

FROM: Louis Sun, Public Works Director
Edmund Suen, Finance Director

SUBJECT: REVIEW OF PROJECTED WATER RATES FOR FY 2022-2023

AND POLICY DIRECTION FOR RATE NOTIFICATION UNDER
PROPOSITION 218

RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors review and discuss the proposed water rates for FY 2022- 2023 based on a conservation-based rate model with two rate tiers and by Minute Order provide direction on the issuance of a notice to all rate payers under the requirements of Proposition 218 for a public hearing to be held on June 6, 2022.

EXECUTIVE SUMMARY
The EMID water enterprise is in good financial shape, its water service rates remain below the average rates compared to other agencies on the Bay Area Peninsula, and it is debt free. As of July 1, 2021, the Operating Reserve balance was $7,293,780, to be used in case of an operational emergency or to smooth any “rate shocks” to water customers.

However, as much of EMID’s infrastructure enters its fifth decade in service, some of its components are nearing the end of their expected service life. In 129
Fiscal Year 2019-2020, the District completed a 20-year master plan study which identified and prioritized projects for a 20-year time horizon. The costs for recommended projects have been incorporated into the 10-year Water Enterprise projections and the rate model developed by consultant Bartle Wells Associates (BWA). The recommended water rates would provide sufficient revenue for necessary maintenance, operations, and capital improvements for the five -year period including FY 2022-2023.

Table 3 from the Appendix C of the Bartle Wells Associates Rate Study Results Memo (Attachment 1) shows the proposed water rates for FY 2022- 2023 and a projection of future water rates necessary to support the operation. As seen in the table, water bills are composed of two components, a fixed monthly charge based on meter size, plus a water consumption charge based on each customer’s metered water use. The fixed monthly charge corresponds to the cost to provide the infrastructure for water delivery to customers, based upon the size of the meter.

Table 5 from Appendix C of the Bartle Wells Associates Rate Study Results 130
Memo (Attachment 1) provides more information about how the proposed new rates impact ratepayers in FY 2022-2023 and projects the impact into the future. The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The proposed water rates are designed to cover District operating and capital costs and maintain the operating fund above target levels.

Based upon the EMID Board of Directors’ policy direction this evening, the District will mail a notice to all ratepayers prior to the April 23, 2022, statutory deadline for a public hearing to be held on June 6, 2022 to consider the new rates. If adopted, the new rates will go into effect on July 1, 2022.

BACKGROUND/ANALYSIS
The District currently provides water service through approximately 8,206 water service and fire protection service accounts/meters. Most of the District’s customers are residential.

The primary drivers for the proposed FY 2022-2023 rates include the following:
Cost of Wholesale Water from the San Francisco Public Utility Commission (SFPUC). The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The SFPUC, the sole source of water supply for the District, is projecting the current rate of $4.10 in FY 2022 per hundred cubic feet (ccf) will increase to $4.75 in FY 2023 and $5.28 in FY 2024. The proposed water rates are designed to phase in District rate increases 131
over time to avoid sharp increases.
Bay Area Water Supply and Conservation Agency (BAWSCA) Surcharge. The District will continue to make annual payments to BAWSCA for capital improvement costs associated with the $4.8 billion Water System Improvement Project (WSIP) to upgrade the Hetch Hetchy Water System. For FY 2022-2023, the payment will be $699,284. For rate setting purposes, the BAWSCA Bond Surcharge is estimated at $0.38 cents per ccf. The San Francisco portion of the WSIP is 100% complete as of October 2020. The Regional Portion is approximately 99% complete. The current forecasted date to complete the overall WSIP is May 2023, however SFPUC operating costs and debt service are projected to increase over the next five years. System Water Losses. Water utilities incur real losses from pipeline leakage and apparent losses when customer water consumption is not properly measured or billed. The current water rates are based on

11.0% water loss based on the Water Division’s records. While the consultant indicated that this water loss percentage is within a normal range, the water master plan completed in FY 2020-2021 has identified projects which are expected to reduce these losses to below 10%. The proposed water rates are designed to cover the water loss and fund projects that reduce water loss.
Capital Funding. EMID's strategy for funding long-term capital water improvements calls for an annual transfer from water operating revenues to the City's Capital Improvement Fund to fund those projects over the next 10 years. The proposed rate projections include the increase in capital set aside from $680,000 in FY 2022 to $2,500,000 in FY 2023, $1,750,000 in FY 2024 and $1,000,000 per year thereafter. Conservation Costs. District staff is recommending that the EMID Board of Directors maintain the current allocation of $200,000 to the Water Sustainability Rebate Program for FY 2022-2023 to support voluntary water conservation efforts and the District water leakage detection and repair program.
Operational Costs. Draft operations and maintenance projections assume 4.0% annual increases in personnel costs and 2.5% annual 132
increases in all other costs (excluding wholesale water purchases) to keep revenues in line with operating expenses.

Water/Wastewater Rate Assistance Program
In Rate Year 2020-2021, the District Board approved an assistance program for customers whose income also qualified them for Pacific Gas and Electric Company’s California Alternate Rates for Energy (CARE) discount program.

While it is not possible to know exactly how many households qualify, based upon the number of customers enrolled in the PG&E CARE program, BWA estimates that approximately 227 customers may potentially be eligible for the up to $15 per month discount. Currently there are eleven (11) customers enrolled in the program. Participation in the W/WRAP program is supported by non-rate sources of revenue such as fines and penalties, to maintain compliance with California Proposition 218, so water rates are unaffected by participation in the program.

The cost of the W/WRAP program based on current enrollment is $1,980 per year. The maximum potential cost of a $15/month discount for all estimated 227 eligible customers is $41,000 per year. Through the first eight months of FY 2022, revenue from delinquent water payments totaled $23,600, which is sufficient to fund the program. Staff will continue to monitor the funding sources available for the program.

The Rate Assistance Program has been authorized by the City Council on an annual basis, and authorization to continue the program will be on the agenda with the consideration of rates in June.

Rate Smoothing
The EMID Board of Directors has implemented a long-term rate smoothing model that takes into consideration the long-range wholesale water rate projections by the SFPUC and significant capital improvements that have a profound impact on rates, such as the WSIP program. The rate smoothing model attempts to maintain revenue increases at no greater than 10% per year. The proposed FY 2022-2023 rates use a 15-year model, which has proven to be successful in dampening the impacts of significant rate increases imposed by the SFPUC on the ratepayers.
133
Rate Survey
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential monthly water bill with neighboring communities. The results of the survey are summarized in the Water Rate Survey Comparison Chart that appears as Appendix B in Attachment 1.

Including the recommended increase, the average monthly water bill proposed for Single Family customers using 8 ccf of water per month in FY 2022-2023 is $74.85. Since it is unknown what the comparator agencies will be proposing for FY 2022-2023, the District compares its current monthly residential water bills for FY 2021-2022 to the current rates of the neighboring agencies. The survey indicates the District's water rates remain among the lowest on the Peninsula. For FY 2021-2022, the average monthly water bill for the region (based on 8 units of water for monthly usage) is $94.83 per month and the District’s FY 2021-2022 average monthly residential water bill is $72.16 per month, or about 24% less than the current average of neighboring communities.

Proposition 218 Notification
District staff requests that the EMID Board of Directors review the information prepared by BWA and staff and provide direction regarding water rates for FY 2022-2023. Based on that direction, District staff will prepare a notice that will be mailed to all ratepayers on or before April 23, 2022, in compliance with the provisions of Proposition 218. A public hearing on and adoption of the proposed rates will be agendized for the June 6, 2022 EMID Board of Directors regular meeting in conjunction with the FY 2022-2023 Annual Budget Public Hearing. If adopted, the new rates will become effective July 1, 2022.

Between the Public Notice mailing date and the public hearing date, the EMID Board of Directors will receive the FY 2022-2023 Preliminary Annual Budget and Five-Year Financial Plan. Any adjustments that occur based upon EMID Board direction at the Budget Study Session will be incorporated into an updated rate model at the time of the public hearing. However, it is the opinion of District staff that conservative assumptions have been employed in the creation of the attached rate models. Accordingly, District staff believes that the rates proposed herein are the maximum rates that would be recommended for FY 2022-2023. At the public hearing, the EMID Board would have the option to reduce rates lower than what was noticed to rate payers under Proposition 218 if budgetary estimates change, but it could not 134
increase the rates above what was noticed.

FISCAL IMPACT
There is no impact to receiving this report and authorizing the preparation of the Proposition 218 notice. Further, water distribution service costs in Foster City are covered by the rates paid by the users as described in this staff report and its attachment. The costs of these services do not impact the City budget or the General Fund.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This item aligns with City Council’s Vision and Mission Statements for a "Sustainable Foster City" under the economic sustainability framework. It is illustrative of the City's commitment to fiscal prudence and responsibility, in delivering a balanced budget, and to promote transparency throughout all its processes.

Attachment:
Attachment 1 - Bartle Wells Associates Water and Wastewater Rate Study Update Results Memo including 2022-2023 Rate Study Tables and Rate Survey Comparison Analysis
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2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE: March 18th, 2022
TO: City of Foster City/Estero Municipal Improvement District FROM: Bartle Wells Associates
SUBJECT: Water and Wastewater Rate Study Update Results

SUMMARY OF FINDINGS AND RECOMMENDATIONS
Introduction and Background
The Estero Municipal Improvement District (District ) engaged Bartle Wel ls Associates (BWA) to develop 10-year financial projections for the District’s Water and Wastewater Enterprises and to recommend water and wastewater rate adjustments for the next five- year period. BWA last conducted formal rate studies in 2021, which resulted in a one-year rate approval for water rates for FY 2022. No public hearing was held for wastewater, as the adopted wastewater rates were determined to be adequate.

Current and projected water service rates are in the lower range compared to other agencies on the Peninsula and wastewater service rates are in the middle range compared to other agencies o n the Peninsula. The District water and wastewater enterprises face unique infrastructure funding challenges.

Water
The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The District faces costs associated with the $4. 8 billion Water System Improvement Project (WSIP) to upgrade the Hetch Hetchy Water System , resulting in significant additional wholesale SFPUC rate increases beginning in FY 2023. The program consists of 87 projects - 35 local projects located within San F rancisco and 52 regional projects, spread over seven counties from the Sierra foothills to San Francisco. The San Francisco portion of the program is 100% complete as of October 2020. The Regional Portion is approximately 99% complete. The current forecast ed date to complete the overall WSIP is May 2023, however SFPUC operating costs and debt service are projected to increase over the next five years.

Attachment 1
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The San Francisco Public Utilities Commission (SFPUC), the sole source of water supply for the District, released updated projections for their wholesale rate for the next two years (FY 2023 & FY 2024). SFPUC is projecting the current rate of $4.10 in FY 2022 per hundred cubic feet (ccf) will increase to $4.75 in FY 2023 and $5.28 in FY 2024.

SFPUC rates were historically held level at $4.10/ccf for six years despite escalating SFPUC debt service and operating costs through use of a balancing account . The balancing account was built up from SFPUC wholesale water sales exceeding projections used in rate setting . The increases in the SFPUC wholesale rates are due to the fund balance reaching zero. SFPUC rates are projected to increase by 15.9% in FY 202 3, 11.2% in FY 2024, 0% in FY 2025, and 0% in FY 2026.

While SFPUC wholesale rates were held flat, the District has been gradually increasing its volumetric rates in anticipation of large projected wholesale rate increases by SFPUC.

While the large wholesale rate increases have come to fruition, the District’s rates have been phased in to avoid sharp increases based on a rate smoothing model.

The District will also continue to make annual payments, projected to be $ 699,284 in FY 2023, to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the WSIP capital improvements that were funded through the issuance of bonds. The water enterprise’s single largest cost is water purchases from SFPUC.

BWA proposed water rates are designed to maintain the operating f und above target levels (90 days operating expenses in reserves) and cover District operating and capital costs. Excluding water purchase and capital related costs, District operating costs are projected to increase by about 3% per year. Additionally, t he District is projected to increase the capital set aside from $680,000 per year to $2,500,000 in FY 2023, $1,750,000 in FY 2024 and $1,000,000 per year thereafter. The additional capital transfers are needed to fund capital projects. Proposed water rates are based on 11% water loss held level from the previous study . That is, 89% of the water EMID purchases is sold to retail customers.

To maintain the operating reserve s, fund the increased capital set aside, and phase in volumetric rates, BWA recommends the District implement a 3% volumetric rate increase and a 5% meter charge increase in FY 202 3. The average bill for a single family home would increase by 3.7% or $2.69 per month.

Detailed water rate calculations are shown in APPENDIX C. 137

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Wastewater
The District has entered into a Joint Powers Agreement with the City of San Mateo where the District receives treatment of its wastewater via the San Mateo Wastewater Treatment Plant (WWTP). The District is responsible for its share of operating and maintenance costs that San M ateo (as the lead agency and the contracting party) incurs treating the District’ s wastewater, as well as approximately 24% of the WWTP improvement costs incurred as part of the Clean Water Program (CWP), a 10 -year comprehensive capital improvement project initiated in 2014 . The Cities of San Mateo and Foster City (District) are expanding the jointly owned WWTP at an estimated cost of $670 MM with $15 3 MM of that falling under Foster City’s contributions. This is in addition to local capital projects for the District’s own wastewater collection system. The wastewater enterprise intends to fund collection system capital expenditures through annual transfers from the operating fund to the capital improvement fund.

In June 2020, to fund the anticipated costs of the WWTP CWP improvements, the District Board approved 5 years of wastewater rate increases: three 14.25% per increases in FY 2021 through FY 2023, a 10% wastewater rate increase in FY 2024, and a 2% increase in FY 2025. BWA’s 2022 analysis shows that the District has adequate financing capacity for projected debt issuances in the next several years. No additional rate increases thereafter are projected, however BWA recommends reevaluating outer year increases over the next several years as financing terms and capital costs materialize.

Detailed wastewater rate calculations are shown in APPENDIX E.

Rate Surveys
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential monthly water and wastewater bills with neighboring communities. The results of the water survey are summarized in APPENDIX B and the results of the wastewater survey are summarized in APPENDIX D.

The water survey compares an average monthly water bill for 8 units of water which would be a common residential consumption. Including the recommended increase, the District’s average monthly water bill proposed for FY 2023 is $74.85. Since it is unknown what the comparator agencies are proposing for FY 2023, the District compares its FY 138

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2022 monthly residential water bills to the FY 2022 monthly residential water bills for the neighboring agencies. The survey indicates that the District’s water rates are among the lowest on the Peninsula. The average monthly water bill for the region is $94.83 per month and the District’s average monthly residential water bill is $72.16 per month, or about 24% less. Since the proposed increase is also less than the FY 2022 average, it is likely that EMID customers will continue to pay much lower than average water bills.

Including the recommended increase, the District’s proposed monthly wastewater bill for FY 2023 is $127.06. Since it is unknown what the comparator agencies are proposing for FY 2023, the District compares its FY 2022 monthly residential wastewater bills to the FY 2022 monthly residential wastewater bills for the neighboring agencies. The survey indicates that the District’s current wastewater rates are slightly below the average amongst its comparator agencies. The average monthly bill for the region is $115.57 and the District’s rate is $111.21 per month, or about 3.8% less. When the previously approved 14.25% increase is implemented, it is likely that the District’s rates will exceed the average monthly bill among comparator agencies for FY 2023, although the actual position will not be known until all agencies have approved their rates. 139

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Water Enterprise Fund
The District currently provides water service to a population of approximately 3 6,500.

Most of the District’s customers are residential. Table 1 shows the approximately 8,206 accounts/meters that allow for water service and fire protection service.

Table 1
City of Foster City / Estero Municipal Improvement District Water Meters By Size
Data as of: 02/06/22
Water Service
3/4" 6,780 1.00 6,780
1" 458 1.67 763
1-1/2" 171 4.00 684
2" 380 5.33 2,027
3" 89 11.67 1,038
4" 55 21.00 1,155
6" 28 46.67 1,307
8" or greater 20 80.00 1,600
Subtotal 7,981 15,354
Private Fire Protection Service
3/4" 0 1.40 0
1" 7 1.40 10
1-1/2" 3 1.40 4
2" 0 1.87 0
3" 2 4.08 8
4" 35 7.35 257
6" 95 16.33 1,551
8" or greater 83 28.00 2,324 Subtotal 225 4,155
Total 8,206 19,509
Source: Foster City/Estero Municipal Improvement District water use records [2] Private fire protection service ratio based on the fire service line; Resolution No. 2715 [3] Equals the number of accounts multiplied by the meter ratio for each meter size.

Meter Size Accounts Meter Ratio1,2 Est. Meter Equivalents3 [1] The meter ratios shall be based on meter size in compliance with ratios established by the American Water Works Association (AWWA) Sizing Water Service Lines and Meters M22, Second Edition, 2004 (M22 Manual)
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Table 2 illustrates the current reserves that the District can draw down in case of emergency or to smooth any “rate shocks” to its customers. In recent years reserves were used as a buffer due to unexpected increases in system water losses.

The District is meeting its 90-day operating fund reserve target in FY 2022 (estimated to be $3.85 million.)

The wholesale water purchase rates that SFPUC is projecting through FY 2026 are shown graphically in CHART A. The SFPUC also collects the BAWSCA Bond Surcharge from the District. The chart incorporates the BAWSCA Bond Surcharge estimated at $0.38 cents per ccf. The SFPUC rates and BAWSCA surcharge combined are projected to increase from FY 2022 to FY 202 4 from $4.48/ccf ($4.10 SFPUC + $ 0.38 BAWSCA) to $5. 66/ccf ($5.28 + $0.38 BAWSCA).

Table 2
City of Foster City / Estero Municipal Improvement District Water Enterprise Operating Reserves
July 1, 2021
Fund Reserve Component Reserve Balance
Reserved for Maintenance & Operation (401) $7,293,780
Total $7,293,780
operating expenditures.

Note: Rate model only includes fund reserve components available to fund ongoing Source: City of Foster City/Estero Municipal Improvement District Staff 141

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CHART A
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Table 3 summarizes the District’s projected operating expenditures which are anticipated to increase over the next five years by about 24%.

Table 3
City of Foster City / Estero Municipal Improvement District Water Enterprise O&M Projection
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Employee Services 2,491,902 2,571,201 2,674,049 2,781,011 2,892,251 3,007,941 4.0% Internal Services - Others 831,786 981,778 1,006,322 1,031,481 1,057,268 1,083,699 2.5% Internal Services - ERF 633,532 510,436 523,197 536,277 549,684 563,426 2.5% Services & Supplies 830,740 706,362 724,021 742,122 760,675 779,691 2.5% SFPUC Water Purchases 8,824,980 10,246,000 11,423,000 11,465,000 11,507,000 11,894,000 varies BAWSCA Bond Repayment 810,408 699,284 699,284 699,284 699,284 699,284 Reallocation 1,186,431 1,251,440 1,282,726 1,314,794 1,347,664 1,381,356 2.5% Water Sustainability 200,000 200,000 200,000 200,000 200,000 200,000 Capital Outlay 13,000 5,500 5,638 5,778 5,923 6,071 2.5% TOTAL O&M Expenditures 15,822,779 17,172,001 18,538,237 18,775,746 19,019,748 19,615,469

8.5% 8.0% 1.3% 1.3% 3.1%
[1] Based on City/District Staff direction
Five Year Projection Annual %
Increase [1]Expenditures
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Table 4 summarizes the current water rates. The District has variable expenditures which are expenditures that are impacted by the amount of water its customers consume. These costs must be recouped via its volumetric water charge, $5.92 per ccf in FY 2022. Likewise, the District’s meter charges recover fixed expenditures, expenditures that are fixed regardless of amount of water that is consumed, $24.80 for a ¾” meter in FY 2022.

The District has a two-tiered model for its residential customers where higher levels of water consumption are subject to higher water rates based on a proportionate share of conservation program costs. Commercial customers are charged a uniform rate, which includes commercial customer’s proportionate share of conservation program costs.

For its irrigation customers, the District has worked with John Whitcomb of Waterfluence to assign each irrigation customer a water budget. Any water consumed above the irrigation customers allotted amount is subject to a higher Tier 2 rate based on each customer’s share of conservation program costs.

APPENDIX A shows District historical water use trends from the prior year. The trend has been an increase in residential usage and a decline in commercial water usage. BWA’s proposed rates are designed to match volumetric expenses (such as water purchases) with volumetric revenue. The rate structure mitigates over or under collecting revenue due to fluctuations in water use.
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Table 4
City of Foster City / Estero Municipal Improvement District Current Rates
Current Rates 2022
Fixed Meter Charge
Monthly Meter Charge
Meter Size
3/4" $24.80
1" $41.33
1-1/2" $99.20
2" $132.27
3" $289.33
4" $520.80
6" $1,157.33
8" or greater $1,984.00
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf $5.92
Tier 2 Over 20 ccf $6.55
Multi-Family Residential
Tier 1 0-10 ccf per living unit $5.92
Tier 2 Over 10 ccf per living unit $6.57
Irrigation Customers
Tier 1 <=100% of annual budget $5.92
Tier 2 >100% of annual budget $6.51
Commercial and Fire Line
All usage $6.04
Monthly Private Fire Protection Charge
Meter Size
3/4" $34.72
1" $34.72
1-1/2" $34.72
2" $46.38
3" $101.18
4" $182.28
6" $404.98
8" or greater $694.40
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Low Income Discount
Currently Foster City has 11 customers enrolled in the Water/Wastewater Rate Assistance Program (WWRAP), which was implemented in 2020. Customers meeting the eligibility and qualification requirements below are granted a discount of up to $15 per month each on their qualifying Water and Wastewater accounts, not to exceed a $30 per month discount per customer. To be eligible for the WWRAP, customers must show that they qualify for the PG&E CARE Program or other public assistance program or submit proof of income eligibility.

According to Pacific Gas & Electric, 680 customers are enrolled in the PG&E CARE Program in Foster City. BWA estimates that approximately 227 of these customers are single family residential and therefore would be eligible for the discount. Multifamily units would not be eligible for the discount because water service is often not separately metered for each unit and the bill is typically not paid by the individual units.

The District funds the current low income discount through non-rate sources of revenue such as fines and penalties, cell tower lease and general fund revenue to maintain compliance with California Proposition 218.

The estimated maximum potential cost of a $30/month discount for 227 customers amounts to $82,000 per year. Since the low income discount revenue sources cannot be funded with rates, rates are unaffected by the decision on the terms of the program and hence are not required to be included in the Proposition 218 notification.

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APPENDIX A

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APPENDIX B
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APPENDIX C

Table 1
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Fiscal Year Ending June 30 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Assumptions:

Interest Earnings Rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Revenue Increase from Growth [1] 0.00% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Fixed Charge $24.80 $26.05 $27.35 $28.70 $30.15 $31.65 $33.25 $34.90 $36.65 $38.50 $40.45 Fixed Rate Adjustment 5.0% 5.0% 4.9% 5.1% 5.0% 5.1% 5.0% 5.0% 5.0% 5.1% SFR Variable Charge $5.92 $6.10 $6.28 $6.47 $6.66 $6.86 $7.06 $7.27 $7.48 $7.70 $7.93 Variable Rate Adjustment 3.0% 3.0% 3.0% 2.9% 3.0% 2.9% 3.0% 2.9% 2.9% 3.0% Monthly Service Charge Single Family (8 ccf) $72.16 $74.85 $77.59 $80.46 $83.43 $86.53 $89.73 $93.06 $96.49 $100.10 $103.89 Rate Adjustment 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.8% Beginning Fund Balance $7,293,780 $8,432,000 $6,756,000 $5,155,800 $4,816,100 $5,021,400 $5,447,900 $6,108,600 $7,024,300 $8,202,000 $9,680,700 Revenues
Water Sales & Service Charges
Meter Charge Revenue Estimate 5,806,000 6,121,000 6,450,000 6,793,000 7,162,000 7,546,000 7,956,000 8,382,000 8,834,000 9,314,000 9,822,000 Volumetric Revenue Estimate 11,464,000 11,833,000 12,204,000 12,617,000 13,039,000 13,471,000 13,908,000 14,367,000 14,829,000 15,321,000 15,826,000 Connection Fees [1] 335,274 0 0 0 0 0 0 0 0 0 0
Interest Earnings - Operating Reserve [2] 36,000 42,000 34,000 26,000 24,000 25,000 27,000 31,000 35,000 41,000 48,000 Interest Earnings - Capital Improvement Fund [3] 0 0 0 0 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 0 0 0 0
Operating Revenues 17,641,274 17,996,000 18,688,000 19,436,000 20,225,000 21,042,000 21,891,000 22,780,000 23,698,000 24,676,000 25,696,000 Expenses
Employee Services 2,491,902 2,571,201 2,674,049 2,781,011 2,892,251 3,007,941 3,128,000 3,253,000 3,383,000 3,518,000 3,659,000 Internal Services - Others 831,786 981,778 1,006,322 1,031,481 1,057,268 1,083,699 1,111,000 1,139,000 1,167,000 1,196,000 1,226,000 Internal Services - ERF 633,532 510,436 523,197 536,277 549,684 563,426 578,000 592,000 607,000 622,000 638,000 Services & Supplies 830,740 706,362 724,021 742,122 760,675 779,691 799,000 819,000 839,000 860,000 882,000 SFPUC Water Purchases 8,824,980 10,246,000 11,423,000 11,465,000 11,507,000 11,894,000 12,293,000 12,705,000 13,132,000 13,572,000 14,027,000 BAWSCA Bond Repayment 810,408 699,284 699,284 699,284 699,284 699,284 699,284 699,284 699,284 699,284 699,284 Reallocation 1,186,431 1,251,440 1,282,726 1,314,794 1,347,664 1,381,356 1,416,000 1,451,000 1,487,000 1,524,000 1,562,000 Capital Outlay 13,000 5,500 5,638 5,778 5,923 6,071 6,000 6,000 6,000 6,000 6,000 Operating Expenses 15,622,779 16,972,001 18,338,237 18,575,746 18,819,748 19,415,469 20,030,284 20,664,284 21,320,284 21,997,284 22,699,284 Operating Net Revenues 2,018,495 1,023,999 349,763 860,254 1,405,252 1,626,531 1,860,716 2,115,716 2,377,716 2,678,716 2,996,716 Water Sustainability Fund Transfer 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Capital Improvement Transfer [4] 680,000 2,500,000 1,750,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Expenses 16,502,779 19,672,001 20,288,237 19,775,746 20,019,748 20,615,469 21,230,284 21,864,284 22,520,284 23,197,284 23,899,284 Revenues Less O&M Expenses 2,018,495 1,023,999 349,763 860,254 1,405,252 1,626,531 1,860,716 2,115,716 2,377,716 2,678,716 2,996,716 Revenues Less Total Expenses 1,138,495 (1,676,001) (1,600,237) (339,746) 205,252 426,531 660,716 915,716 1,177,716 1,478,716 1,796,716 Ending Fund Balance 8,432,275 6,755,999 5,155,763 4,816,054 5,021,352 5,447,931 6,108,616 7,024,316 8,202,016 9,680,716 11,477,416 Revenue Test: Annual Revenues > O&M Expenses
Annual Revenues Less O&M Expenses 2,018,495 1,023,999 349,763 860,254 1,405,252 1,626,531 1,860,716 2,115,716 2,377,716 2,678,716 2,996,716 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: Minimum Fund Balance > 25% O&M Expenses Year-end fund balance 8,432,275 6,755,999 5,155,763 4,816,054 5,021,352 5,447,931 6,108,616 7,024,316 8,202,016 9,680,716 11,477,416 25% operating expenses 3,850,000 4,180,000 4,520,000 4,580,000 4,640,000 4,790,000 4,940,000 5,100,000 5,260,000 5,420,000 5,600,000 # of Days O&M in Reserves 197 145 103 95 97 102 111 124 140 161 185 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Estimated for planning purposes
[2] Calculated as 0.5% of the Beginning Fund Balance of the Water Revenue Fund [3] Calculated as 0.5% of the Beginning Fund Balance of the Water Capital Improvement Project Fund [4] Capital Improvements are funded through the Long-Term Capital Improvement Project Fund Five Year Projection Extended Year Projection
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Table 2
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
Fiscal Year Ending June 30 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Fixed Meter Charge Increase 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Fixed Revenues +/- 5% of Fixed Costs? NO YES YES YES YES YES YES YES YES YES Reserves % Above (Below) Reserve Target 161.6% 114.1% 105.2% 108.2% 113.7% 123.7% 137.7% 155.9% 178.6% 205.0% Reserve Target Met? YES YES YES YES YES YES YES YES YES YES Revenue Estimates
Meter Charge Revenue 5,806,000$ 6,121,000$ 6,450,000$ 6,793,000$ 7,162,000$ 7,546,000$ 7,956,000$ 8,382,000$ 8,834,000$ 9,314,000$ 9,822,000$ Other Fixed Revenue 371,274$ 42,000$ 34,000$ 26,000$ 24,000$ 25,000$ 27,000$ 31,000$ 35,000$ 41,000$ 48,000$ Volumetric Revenue 11,464,000$ 11,830,000$ 12,199,000$ 12,608,000$ 13,039,000$ 13,473,000$ 13,910,000$ 14,369,000$ 14,831,000$ 15,323,000$ 15,831,000$ Total Projected 17,641,274$ 17,993,000$ 18,683,000$ 19,427,000$ 20,225,000$ 21,044,000$ 21,893,000$ 22,782,000$ 23,700,000$ 24,678,000$ 25,701,000$ Total Projected Revenue (Rounded '000's) 17,641,000$ 17,993,000$ 18,683,000$ 19,427,000$ 20,225,000$ 21,044,000$ 21,893,000$ 22,782,000$ 23,700,000$ 24,678,000$ 25,701,000$ $17,641,274 $17,996,000 $18,688,000 $19,436,000 $20,225,000 $21,042,000 $21,891,000 $22,780,000 $23,698,000 $24,676,000 $25,696,000 Revenue Allocation
Fixed 35.0% 34.3% 34.7% 35.1% 35.5% 36.0% 36.5% 36.9% 37.4% 37.9% 38.4% Variable 65.0% 65.7% 65.3% 64.9% 64.5% 64.0% 63.5% 63.1% 62.6% 62.1% 61.6% Costs Estimates
Fixed Costs [1] $6,667,391 $8,526,717 $7,965,953 $7,411,462 $7,613,464 $7,822,185 $8,038,000 $8,260,000 $8,489,000 $8,726,000 $8,973,000 Variable Costs [2] $9,835,388 $11,145,284 $12,322,284 $12,364,284 $12,406,284 $12,793,284 $13,192,284 $13,604,284 $14,031,284 $14,471,284 $14,926,284 Total Projected Costs $16,502,779 $19,672,001 $20,288,237 $19,775,746 $20,019,748 $20,615,469 $21,230,284 $21,864,284 $22,520,284 $23,197,284 $23,899,284 Net Revenue
Fixed Charges -$490,117 -$2,363,717 -$1,481,953 -$592,462 -$427,464 -$251,185 -$55,000 $153,000 $380,000 $629,000 $897,000 Volumetric Charges $1,628,612 $684,716 -$123,284 $243,716 $632,716 $679,716 $717,716 $764,716 $799,716 $851,716 $904,716 Total $1,138,495 -$1,679,001 -$1,605,237 -$348,746 $205,252 $428,531 $662,716 $917,716 $1,179,716 $1,480,716 $1,801,716 Cost Analysis
Fixed 40.4% 43.3% 39.3% 37.5% 38.0% 37.9% 37.9% 37.8% 37.7% 37.6% 37.5% Variable 59.6% 56.7% 60.7% 62.5% 62.0% 62.1% 62.1% 62.2% 62.3% 62.4% 62.5% Meter Charge Calculation
Monthly charge per meter equivalent 24.80$ 26.05$ 27.35$ 28.70$ 30.15$ 31.65$ 33.25$ 34.90$ 36.65$ 38.50$ 40.45$ (Rounded to nearest $0.05)
Annual charge per meter equivalent 297.60$ 312.60$ 328.20$ 344.40$ 361.80$ 379.80$ 399.00$ 418.80$ 439.80$ 462.00$ 485.40$ Meter equivalents [3] 19,509 19,580 19,652 19,724 19,796 19,868 19,941 20,014 20,087 20,161 20,235 Meter Charge Revenue Estimate 5,806,000$ 6,121,000$ 6,450,000$ 6,793,000$ 7,162,000$ 7,546,000$ 7,956,000$ 8,382,000$ 8,834,000$ 9,314,000$ 9,822,000$ Volumetric Rate Calculation
EMID Proposed Uniform Rate $6.04 6.21$ 6.38$ 6.57$ 6.77$ 6.97$ 7.17$ 7.38$ 7.59$ 7.81$ 8.04$ Projected annual water sales (ccf) [4] 1,898,000 1,905,000 1,912,000 1,919,000 1,926,000 1,933,000 1,940,000 1,947,000 1,954,000 1,962,000 1,969,000 Variable revenue estimate $11,464,000 $11,830,000 $12,199,000 $12,608,000 $13,039,000 $13,473,000 $13,910,000 $14,369,000 $14,831,000 $15,323,000 $15,831,000 % Spread between EMID and SFPUC
Surcharge 47.3% 30.7% 20.8% 24.4% 28.2% 28.2% 28.0% 27.9% 27.7% 27.6% 27.5% SFPUC PROJECTED RATES $4.10 $4.75 $5.28 $5.28 $5.28 $5.44 $5.60 $5.77 $5.94 $6.12 $6.30 Increase (Decrease) % 15.9% 11.2% 0.0% 0.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% BAWSCA Surcharge $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 $0.38 SFPUC Rate + BAWSCA Surcharge $4.48 $5.13 $5.66 $5.66 $5.66 $5.82 $5.98 $6.15 $6.32 $6.50 $6.68 EMID Fixed Meter Charge Increase (Decrease) 5.0% 5.0% 4.9% 5.1% 5.0% 5.1% 5.0% 5.0% 5.0% 5.1% EMID Volumetric Rate Increase (Decrease) 2.8% 2.7% 3.0% 3.0% 3.0% 2.9% 2.9% 2.8% 2.9% 2.9% Note:
[1] Includes: Employee Services, Internal Services - Other, Internal Services - ERF, Services & Supplies, Reallocation, Capital Outlay, Capital Improvement Fund Transfers, Debt Service, and net revenues for the operating fund. [2] Includes: SFPUC Water Purchases, BAWSCA Bond Repayment, and Water Sustainability Fund Transfers. [3] 0.37% growth estimated for planning purposes
[4] Includes 11% water loss factor
Five Year Projection Extended Year Projection
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Table 3
City of Foster City / Estero Municipal Improvement District Proposed Water Rates - Two Tier Hybrid Model
Current
Rates FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 Monthly Meter Charge
3/4" $24.80 $26.05 $27.35 $28.70 $30.15 $31.65 $33.25 $34.90 $36.65 $38.50 $40.45 1" 41.33 43.42 45.58 47.83 50.25 52.75 55.42 58.17 61.08 64.17 67.42 1-1/2" 99.20 104.20 109.40 114.80 120.60 126.60 133.00 139.60 146.60 154.00 161.80 2" 132.27 138.93 145.87 153.07 160.80 168.80 177.33 186.13 195.47 205.33 215.73 3" 289.33 303.92 319.08 334.83 351.75 369.25 387.92 407.17 427.58 449.17 471.92 4" 520.80 547.05 574.35 602.70 633.15 664.65 698.25 732.90 769.65 808.50 849.45 6" 1,157.33 1,215.67 1,276.33 1,339.33 1,407.00 1,477.00 1,551.67 1,628.67 1,710.33 1,796.67 1,887.67 8" or greater 1,984.00 2,084.00 2,188.00 2,296.00 2,412.00 2,532.00 2,660.00 2,792.00 2,932.00 3,080.00 3,236.00 Conservation-Based Water Rate Model (based on bi-monthly allotments) Single Family Residential
Tier 1 0-20 per ccf 5.92 6.10 6.28 6.47 6.66 6.86 7.06 7.27 7.48 7.70 7.93 Tier 2 Over 20 ccf 6.55 6.64 6.77 6.98 7.19 7.38 7.58 7.79 8.00 8.22 8.45 Multi-Family Residential (per living unit)
Tier 1 0-10 ccf per living unit 5.92 6.10 6.28 6.47 6.66 6.86 7.06 7.27 7.48 7.70 7.93 Tier 2 Over 10 ccf per living unit 6.57 6.68 6.82 7.02 7.23 7.43 7.63 7.84 8.05 8.27 8.49 Irrigation Customers
Tier 1 <=100% of annual budget 5.92 6.10 6.28 6.47 6.66 6.86 7.06 7.27 7.48 7.70 7.93 Tier 2 >100% of annual budget 6.51 6.70 6.83 7.03 7.25 7.44 7.64 7.85 8.06 8.28 8.50 Commercial and Fire Line Customers
Base Consumption Rate 6.04 6.21 6.38 6.57 6.77 6.97 7.17 7.38 7.59 7.81 8.04 Monthly Fire Meter Charge
3/4" 34.72 36.47 38.29 40.18 42.21 44.31 46.55 48.86 51.31 53.90 56.63 1" 34.72 36.47 38.29 40.18 42.21 44.31 46.55 48.86 51.31 53.90 56.63 1-1/2" 34.72 36.47 38.29 40.18 42.21 44.31 46.55 48.86 51.31 53.90 56.63 2" 46.38 48.71 51.14 53.67 56.38 59.19 62.18 65.26 68.54 72.00 75.64 3" 101.18 106.28 111.59 117.10 123.01 129.13 135.66 142.39 149.53 157.08 165.04 4" 182.28 191.47 201.02 210.95 221.60 232.63 244.39 256.52 269.38 282.98 297.31 6" 404.98 425.40 446.63 468.67 492.35 516.84 542.97 569.92 598.49 628.71 660.55 8" or greater 694.40 729.40 765.80 803.60 844.20 886.20 931.00 977.20 1,026.20 1,078.00 1,132.60 (Minimum charge is equivalent to 1-1/2" meter charge)

TWO TIER HYBRID MODEL
Recommended Rates
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Table 4
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current FY2023
Rates Two Tier Hybrid Model
Monthly meter charge $24.80 $26.05
% Change 5.0%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf $5.92 $6.10
Tier 2: over 20 ccf $6.55 $6.64
Water Monthly
Use Level Use (ccf) Monthly Bill
Low User 5 $54.40 $56.55
$ Increase 2.15
% Increase 4.0%
Average User 8 $72.16 $74.85
$ Increase 2.69
% Increase 3.7%
High User 10 $84.00 $87.05
$ Increase 3.05
% Increase 3.6%
Very High User 20 $143.20 $153.45
$ Increase 10.25
% Increase 7.2%
Excessive User 50 $339.70 $352.65
$ Increase 12.95
% Increase 3.8%
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Table 5
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Two Tier Hybrid Model
Single Family Residential Monthly Rate $72.16 $74.85 $77.59 $80.46 $83.43 $86.53 $89.73 $93.06 $96.49 $100.10 $103.89 $ Increase 2.69 2.74 2.87 2.97 3.10 3.20 3.33 3.43 3.61 3.79 % Increase 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.8% Based on Single Family Residential Use of 8 ccf
Fiscal Year Ending June 30 Extended Year ProjectionProjected Water Bills 153

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Wastewater Enterprise Fund
There are approximately 13,890 wastewater accounts serviced by the District. The majority of accounts are residential with the remainder consisting of commercial and institutional accounts as shown in Table 1.

The District has approximately $15,832,252 in its wastewater maintenance and operations reserve fund as shown in Table 2. The District’s minimum operating reserve target is 25% of operating and maintenance expenses (est. to be about $2.1 million).

Table 1
Foster City / Estero Municipal Improvement District
Wastewater Service Accounts
Data as of: 02/04/21
Number of Accounts
Residential
Single Family 4,529
Townhouse/Duplex 2,228
Apartment/Condominium (Pools w/ Restrooms) 6,884
Residential Total 13,641
Commercial
Restaurants 42
Commercial/Hotels/Offices/Industrial/Laundromats 172
Commercial Total 214
Institutional
Institutional/Schools 35
Insitutional Total 35
Total 13,890
Source: Cognos Sewer Customer Count Report
Customer Class
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Table 3 summarizes the current wastewater service rates.

Table 2
Foster City / Estero Municipal Improvement District
Wastewater Operating Fund Reserves
July 1, 2021
Fund Reserve Component Balance
Reserved for Maintenance & Operation $15,832,252
Total $15,832,252
operating and capital expenditures.

Note: Rate model only includes fund reserve components available to fund ongoing Source: City of Foster City/Estero Municipal Improvement District Staff Table 3
Foster City / Estero Municipal Improvement District
Current Wastewater Rates
Current
Fiscal Year Ending June 30 2022
Residential (flat monthly rate)
Single Family $111.21
Townhouse/Duplex 93.42
Apartment/Condominium (Pools w/ Restrooms) 93.42
Commercial (rate per ccf of water use)
Restaurants 20.21
Commercial/Hotels/Offices/Industrial/Laundromats 7.11
Institutional (rate per ccf of water use)
Institutional/Schools 4.67
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Table 4 summarizes the operating expenditures of the enterprise. Costs are expected to remain relatively stable over the next five years.

Projected operating expenditures are anticipated to increase over the next five years by about 21%.

Table 4
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise O&M Projection
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Employee Services $2,744,018 $2,866,691 $2,981,359 $3,100,613 $3,224,638 $3,353,624 4.0% Internal Services (from City) 950,070 1,103,144 1,130,723 1,158,991 1,187,966 1,217,665 2.5% Internal Services -ERF 254,683 266,126 272,779 279,598 286,588 293,753 2.5% Services & Supplies 609,550 661,550 678,089 695,041 712,417 730,227 2.5% EMID Share WWTP O&M 2,900,000 2,900,000 3,045,000 3,197,250 3,357,113 3,524,969 5.0% Reallocation 889,601 893,014 915,339 938,222 961,678 985,720 2.5% TOTAL O&M Expenditures $8,347,922 $8,690,525 $9,023,289 $9,369,715 $9,730,400 $10,105,958

4.1% 3.8% 3.8% 3.8% 3.9%
[1] Based on historical results
Annual %
Increase [1]Expenditures Five Year Projection
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Wastewater Financial Projections

Wastewater projections are shown in APPENDIX E.

San Mateo-Foster City Public Financing Authority:

Projections anticipate $94 million of debt issuances between FY 2022 and FY 2024 ($61 MM of WIFIA proceeds and $33 MM of SRF loans) to fund WWTP expansion costs. BWA projects that the approved rate increases are adequate to secure projected debt issuances over the next several years.

Table 5 shows debt service estimates for the District’s share of WWTP costs. Annual debt service for the combined total debt issuances is estimated to amount to $5.78 MM by FY 2027.

Table 5
City of Foster City / Estero Municipal Improvement District Debt Service Estimates
Debt Service 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2020 WIFIA Loan $0 $0 $0 $0 $357,732 $2,470,060 $2,470,061 $2,470,061 $2,470,061 $2,470,060 $2,470,061 2019 Financing Agreement 2,087,125 2,084,250 2,085,000 2,084,250 2,086,875 2,087,750 2,086,875 2,084,250 2,084,750 2,088,125 2,084,375 2021 WIFIA Loan Note 0 0 0 1,830,500 1,569,000 0 0 0 0 0 0 2022 Financing Agreement 0 0 0 0 264,526 1,221,789 1,221,789 1,221,789 1,221,789 1,221,789 1,221,789 Total Debt Service $2,087,125 $2,084,250 $2,085,000 $3,914,750 $4,278,133 $5,779,599 $5,778,725 $5,776,100 $5,776,600 $5,779,974 $5,776,225 157

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CHART B
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Wastewater Cost of Service Analysis
Bartle Wells performed a Wastewater Cost of Service Analysis to determine equitable cost allocation to the various user classes. BWA recommends continuing the practice of placing commercial customers into three wastewater strength categories, (low, medium and high) based on the State Water Resources Control Board (SWRCB) Wastewater Revenue Program Guidelines. Low strength wastewater (Class A) customers include banks, laundromats, retail stores, schools, churches and others as shown in Table 6.

Medium strength wastewater (Class B) customers have wastewater strength factors that are assumed to be similar to residential wastewater strength factors. They include typical commercial activities such as libraries, spas, nail salons, gas stations and bars.

High strength wastewater (Class C) customers primarily include food -related businesses such as restaurants, bakeries, dairies, wineries, catering, butcher shops and fish markets.

Table 6
City of Foster City/Estero Municipal Improvement District Strength Classifications into Low, Medium/Domestic, and High Strength Dischargers

Low Strength Banks & Financial Institutions
Barber Shops/Hair Salons (hair cutting only)
Post Offices/Government
Retail Stores
Libraries
Schools
Churches, Halls & Lodges
Parking Garages
Warehouses

Medium/Commercial/ Residential - All
Domestic Strength Appliance Repair
Beauty Shops (hair cutting w/additional treatments)
Dry Cleaners
Nail Salons
Pet Groomers
Commercial Laundromats
Bars & Taverns
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Tasting Rooms
Hospitals - General, Convalescent & Veterinarian
Hotels, Motels, B&Bs, and Vacation Rentals
Offices - Business and Professional
Offices - Medical/Dental
Pools with Restrooms (Clubhouse)
Theaters
Car Washes
High Tech Medical Manufacturing
Light Manufacturing/Industrial
Gym or Health Club
Machine Shops
Service Stations, Garages, Auto Repair Shops
Mini Marts - W/O Dish Washer or Garbage Disposal
Mini Mart with Gas Pumps - W/O Dish Washer or Garbage Disposal Spa with Various Beauty Treatments

High Strength Restaurants
Coffee Shops
Ice Cream Parlors
Catering
Eatery
Bakeries
Butcher Shops
Fish Market/Shop

Markets - with Dish Washer or Garbage
Disposal
Markets - with Bakeries or Butcher Shops
Mini Marts - with Dish Washer or Garbage Disposal
Wineries
Market
Dairies (milk producers, yogurt, ice cream maker)
Specialty Foods Manufacturing (e.g., cheese or olive oil maker)

Note: Wastewater users who have Fats, Oils, and Grease (FOG) waste will be put into the High Strength user category
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Table 7 summarizes the assumed wastewater strength factors for the low, medium and high strength groups that are based on typical strengths provided in the SWRCB’s Revenue Program Guidelines. The strength factor for medium strength customers is equivalent to res idential or “domestic” strength, of 1.00. The strength factor for low strength is calculated at 0.66 and for high strength is calculated at 2.85 based on the SWRCB guidelines.

Table 7
City of Foster City/Estero Municipal Improvement District Assumed Wastewater Strength Factors
Strength Class LOW LOW-MEDIUM MEDIUM HIGH
Examples: Institutional Residential Restaurant
Bank Offices Bakery
Flow (gpd) 200 168 200 200
BOD1 (mg/l) 135 240 240 1000
TSS2 (mg/l) 100 240 240 800
Strength Factor 0.66 0.84 1.00 2.85
Strength Factor Formula SF=(Flow(gpd)/200)*(0.33+(0.34*BOD(mg/l)/240)+(0.33*TSS(mg/l)/240)) WW flows and strengths based on State Water Resources Control Board's Revenue Program Guidelines 1 "BOD" stands for Biochemical Oxygen Demand
2 "TSS" stands for Total Suspended Solids
Townhouse, Duplex,
Apartment, Condo
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Table 8 summarizes the mass-balance analysis for the City’s wastewater system and calculates the wastewater rates for each customer class. Single family residences are assumed to have an average daily (dry weather) flow of 200 gallons per day (gpd).

Based on residential occupancy data provided by the City of Foster City, single family residences are estimated to have an average of 2.67 residents per household and multi-family residences are estimated to have an average of 2.25 residents per household (84% of a single family household).

Multi-family dwellings are billed based on an estimated flow of 168 gpd or 0.84 time s the single family flow. As a check, the mass balance in Table 8 compares the total calculated and measured daily wastewater flows for Foster City (average dry weather flow).

The results agree well with the estimated daily flow at 2.58 million gallons per day (mgd) and the measured flow at 2.37 mgd.
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Table 8
City of Foster City/Estero Municipal Improvement District Summary of Wastewater Users by Customer Class
FY 2022 Estimate
Customer Class EDU x Flow Calculated
EDUs1 ADWF Flow ADWF Flow BOD3 TSS4 Current
(gal/day) (gal/day) (mg/l) (mg/l) Rate
Residential
Single Family Residential 4,529 200 905,800 240 240 111.21 Townhouse/Duplex 2,228 168 374,304 240 240 93.42
Apartment/Condos 6,884 168 1,156,512 240 240 93.42
Subtotal 2,436,616
Use Estimated Calculated
Accounts (gal/day) Flow Factor ADWF Flow BOD3 TSS4 Current Commercial (gal/day) (mg/l) (mg/l) Rate
Low Strength 35 30,092 65% 19,560 135 100 4.67
Medium/Domestic Strength 172 175,798 52% 91,343 240 240 7.11 High Strength 42 42,163 70% 29,514 1000 800 20.21
Subtotal 248,054 140,417
Totals 2,577,033
Check Against Lowest Actual Monthly Avg. Day Flow (May 2014 from LS 59 Flow Log): 2,367,806 1 "EDU" stands for Equivalent Dwelling Unit
2 "ADWF" stands for Average Dry Weather Flow
3 "BOD" stands for Biochemical Oxygen Demand
4 "TSS" stands for Total Suspended Solids
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APPENDIX D
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APPENDIX E

Table 1
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Assumptions:

Interest Earnings Rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Revenue Increase from Growth 0.00% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Rate Adjustment 14.25% 10.00% 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Monthly Service Charge for Single Family $111.21 $127.06 $139.77 $142.57 $142.57 $142.57 $142.57 $142.57 $142.57 $142.57 $142.57 Beginning O&M Fund Balance $15,832,252 $19,776,900 $20,844,300 $22,345,300 $24,805,900 $30,889,000 $35,526,600 $39,948,800 $44,071,400 $47,872,300 $51,331,000 Operating Revenues
Service Charges 17,353,232 19,890,000 21,952,000 22,471,000 22,553,000 22,636,000 22,719,000 22,802,000 22,885,000 22,969,000 23,053,000 Connection Fees [1] 45,500
Interest Earnings [2] 79,161 99,000 104,000 112,000 124,000 154,000 178,000 200,000 220,000 239,000 257,000 Other Revenue 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Operating Revenue 17,478,893 19,990,000 22,057,000 22,584,000 22,678,000 22,791,000 22,898,000 23,003,000 23,106,000 23,209,000 23,311,000 Non Operating Revenue
Bond / Loan [3] 53,956,199 37,028,877 3,055,001 0 0 0 0 0 0 0 0 Non Operating Revenue 53,956,199 37,028,877 3,055,001 0 0 0 0 0 0 0 0 Total Revenue 71,435,092 57,018,877 25,112,001 22,584,000 22,678,000 22,791,000 22,898,000 23,003,000 23,106,000 23,209,000 23,311,000 Operating Expenses
Employee Services 2,744,018 2,866,691 2,981,359 3,100,613 3,224,638 3,353,624 3,487,769 3,627,280 3,772,371 3,923,266 4,080,197 Internal Services (from City) 950,070 1,103,144 1,130,723 1,158,991 1,187,966 1,217,665 1,248,107 1,279,310 1,311,293 1,344,075 1,377,677 Internal Services -ERF 254,683 266,126 272,779 279,598 286,588 293,753 301,097 308,624 316,340 324,249 332,355 Services & Supplies 609,550 661,550 678,089 695,041 712,417 730,227 748,483 767,195 786,375 806,034 826,185 EMID Share WWTP O&M 2,900,000 2,900,000 3,045,000 3,197,250 3,357,113 3,524,969 3,701,217 3,886,278 4,080,592 4,284,622 4,498,853 Reallocation 889,601 893,014 915,339 938,222 961,678 985,720 1,010,363 1,035,622 1,061,513 1,088,051 1,115,252 Operating Expenses 8,347,922 8,690,525 9,023,289 9,369,715 9,730,400 10,105,958 10,497,036 10,904,309 11,328,484 11,770,297 12,230,519 Operating Net Revenue 9,130,971 11,299,475 13,033,711 13,214,285 12,947,600 12,685,042 12,400,964 12,098,691 11,777,516 11,438,703 11,080,481 Capital Expenses
Transfer Out - Capital Improvement Fund 2,250,000 5,250,000 5,250,000 5,250,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 EMID Share WWTP Expansion 54,805,415 39,926,726 7,252,754 1,588,900 386,360 67,828 0 0 0 0 0 Capital Expenses 57,055,415 45,176,726 12,502,754 6,838,900 2,586,360 2,267,828 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Annual Debt Service 2,087,125 2,084,250 2,085,000 3,914,750 4,278,133 5,779,599 5,778,725 5,776,100 5,776,600 5,779,974 5,779,974 Debt Service 2,087,125 2,084,250 2,085,000 3,914,750 4,278,133 5,779,599 5,778,725 5,776,100 5,776,600 5,779,974 5,779,974 Debt Coverage [4] 4.37 5.42 6.25 3.38 3.03 2.19 2.15 2.09 2.04 1.98 1.92 Total Expenditures 67,490,462 55,951,501 23,611,043 20,123,365 16,594,893 18,153,385 18,475,761 18,880,409 19,305,084 19,750,271 20,210,493 Revenues Less Total Expenditures 3,944,630 1,067,376 1,500,958 2,460,635 6,083,107 4,637,615 4,422,239 4,122,591 3,800,916 3,458,729 3,100,507 Ending O&M Fund 19,776,882 20,844,276 22,345,258 24,805,935 30,889,007 35,526,615 39,948,839 44,071,391 47,872,316 51,331,029 54,431,507 Cash Fund Reserve Test: Minimum Fund
Balance > 25% O&M Expenses
Year-end O&M Fund 19,776,882 20,844,276 22,345,258 24,805,935 30,889,007 35,526,615 39,948,839 44,071,391 47,872,316 51,331,029 54,431,507 25% Operating Expenses 2,086,981 2,172,631 2,255,822 2,342,429 2,432,600 2,526,490 2,624,259 2,726,077 2,832,121 2,942,574 3,057,630 # of Days O&M in Reserves 865 875 904 966 1,159 1,283 1,389 1,475 1,542 1,592 1,624 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Growth projections for planning purposes
[2] Projected interest calculated as 0.5% of the Beginning Fund Balance of the Wastewater O&M Fund. [3] Calculated by William Euphrat Municipal Finance, Inc. [4] Minimum requirement debt service covereage requirement = 1.25x Five Year Projection Extended Year Projection
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Table 2
City of Foster City / Estero Municipal Improvement District Projected Wastewater Rate Impacts
Current
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
% Rate Increase 14.25% 10.00% 2.00% 0.00% 0.00%
Residential (flat monthly rate)
Single Family $111.21 $127.06 $139.77 $142.57 $142.57 $142.57 Increase (Decrease) 15.85 12.71 2.80 0.00 0.00
Townhouse/Duplex $93.42 $106.73 $117.40 $119.75 $119.75 $119.75 Increase (Decrease) 13.31 10.67 2.35 0.00 0.00
Apartment/Condominium (Pools w/ Restrooms) $93.42 $106.73 $117.40 $119.75 $119.75 $119.75 Increase (Decrease) 13.31 10.67 2.35 0.00 0.00
Commercial (rate per ccf of water use)
High Strength $20.21 $23.09 $25.40 $25.91 $25.91 $25.91 Increase (Decrease) per ccf 2.88 2.31 0.51 0.00 0.00
Medium/Domestic Strength $7.11 $8.12 $8.93 $9.11 $9.11 $9.11 Increase (Decrease) per ccf 1.01 0.81 0.18 0.00 0.00
Low Strength $4.67 $5.34 $5.87 $5.99 $5.99 $5.99
Increase (Decrease) per ccf 0.67 0.53 0.12 0.00 0.00
Projected - Fiscal Year Ending June 30Projected Rates
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CHART C

167
DATE: March 28, 2022

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim District Manager

FROM: Louis Sun, Public Works Director
Edmund Suen, Finance Director

SUBJECT: REVIEW OF PROJECTED WASTEWATER RATES FOR FY
2022-2023

RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors accept this report regarding Wastewater Rates based upon the attached Water and Wastewater Rate Study Update Results Memo.

EXECUTIVE SUMMARY
EMID is responsible for its share of operating and maintenance costs that San Mateo (as the lead agency and the contracting party) incurs treating the District’s wastewater, as well as approximately 24.12% of the capital improvement costs incurred as part of the Clean Water Program (CWP), a 10-year comprehensive capital improvement project initiated in 2014 to replace aging infrastructure and meet regulatory requirements at the Wastewater Treatment Plant (WWTP). The District’s total share of the project is approximately $153 million. In March 2018, the EMID Board of Directors adopted a rolling five-year annual wastewater rate increase of 14.25% on all wastewater rates for the period between FY 2018-2019 to FY 2022-2023 in order to ensure that the wastewater enterprise generates enough revenue to pay for its share of the future capital improvement costs of the WWTP and to 168
strengthen the District’s position to obtain low-cost long-term financing for that purpose. In June 2019, the District Board approved a 10% wastewater rate increase in FY 2023-2024, and in June 2020, a 2% increase in FY 2024- 2025. No rate increases are projected for the remainder of the five year term, however District staff and the consultant will continue to reevaluate the outer year rate recommendations over the next several years to validate and update future projections.

Since the EMID Board of Directors already held a public hearing and approved the wastewater rates for FY 2022-2023, the District is not required to hold a public hearing to implement the 14.25% increase. However, Staff recommends that information about the new Wastewater rates that will go into effect on July 1, 2022, be included in the Proposition 218 notice that will be mailed for the Water Rate public hearing.

BACKGROUND/ANALYSIS
There are approximately 13,890 wastewater accounts serviced by the District.

The majority are residential with the remainder consisting of commercial and institutional accounts.

The operational costs for wastewater services are borne jointly by the District and the City of San Mateo via the San Mateo Wastewater Treatment Plant Joint Exercise of Powers Agreement executed in June 1974. Those costs include recurring operations and maintenance, as well as capital improvement costs. The rates that residential wastewater customers pay are based on a fixed charge for the category or type of residential unit (single family, townhouse/duplex, or apartment/condominium). Commercial customers are charged a variable rate based upon the amount of water consumed by their business and the business wastewater strength category.

The District has historically set rates on a “Pay As You Go” basis, meaning that rates are increased only based upon budgeted current operating expenditures in order to meet minimum reserve requirements equal to 25% of annual operating expenditures and $2 million for unanticipated capital expenditures, consistent with the EMID Board of Directors’ existing reserve policy.

The City of San Mateo and EMID are expanding the jointly owned WWTP at an estimated cost of about $670 million, of which the District is responsible for approximately $153 million. This is in addition to local capital projects for the 169
District’s own wastewater collection system. The wastewater enterprise intends to fund collection system capital expenditures through annual transfers from the operating fund to the capital improvement fund of $5,250,000 from FY 2023-2025 and $2,200,000 from FY 2026-2032 As of June 2020, to fund the anticipated costs of the WWTP CWP improvements, the District Board approved 5 years of wastewater rate increases: three 14.25% per year increases in FY 2021 through FY 2023, a 10% wastewater rate increase in FY 2024, and a 2% increase in FY 2025.

Bartle Wells Associates (BWA)’s 2022 analysis shows that the District has adequate financing capacity for projected debt issuances in the next several years. Rates must be in place to ensure adequate funds to cover debt service.

FY 2020-2021 to FY 2024-2025 Wastewater Rate Impact
Single Family Residential and Multi-Family Residential class customers are billed using a flat rate. Commercial customers are billed at a variable volumetric rate based on water usage and strength classification. The new wastewater rate projections propose an overall rate increase of 14.25% on all wastewater rates for FY 2022-2023, decreasing to 10.00% in FY 2023-2024, and further decreasing to 2.00% for FY 2024-2025. Table 2 from Appendix E of the BWA Rate Study Results Memo (Attachment 1) provides a comparison of current rates to proposed rates.
170
Water/Wastewater Rate Assistance Program
In Rate Year 2020-2021, the District Board approved an assistance program for customers whose income also qualified them for Pacific Gas and Electric Company’s California Alternate Rates for Energy (CARE) discount program.

While it is not possible to know exactly how many households qualify, based upon the number of customers enrolled in the PG&E CARE program, BWA estimates that approximately 227 customers may potentially be eligible for the up to $15 per month Wastewater Account discount. Currently there are eleven (11) customers enrolled in the program. Participation in the W/WRAP program is supported by non-rate sources of revenue such as fines and penalties, to maintain compliance with California Proposition 218, so wastewater rates are unaffected by participation in the program.

The cost of the W/WRAP program based on current enrollment is $1,980 per year. The maximum potential cost of a $15/month discount for all estimated 227 eligible customers is $41,000 per year. Through the first eight months of FY 2022, revenue from delinquent wastewater payments totaled $27,415, which is sufficient to fund the program. Staff will continue to monitor the funding sources available for the program.

The Rate Assistance Program has been authorized by the City Council on an annual basis, and authorization to continue the program will be on the agenda with the consideration of rates in June.

Rate Survey
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential wastewater bill with neighboring communities. The results of the survey are summarized in the Wastewater Rate Survey Comparison Chart that appears as Appendix D in Attachment 1.

The average monthly bill among comparator agencies for FY 2021-2022 is $115.57. The District’s average rate for FY 2021-2022 is $111.21 per month, or about 3.8% less than the average. When the previously approved 14.25% increase is implemented, it is likely that the District’s rates will exceed the average monthly bill among comparator agencies for FY 2022-2023, although the actual position will not be known until all agencies have approved their rates.
171
Proposition 218 Notification
Since the EMID Board of Directors already held a public hearing and approved the wastewater rates for FY 2022-2023, the District is not required to hold a public hearing. While City Council will receive the complete Wastewater Fund budget at a later meeting, it is the opinion of District staff that conservative assumptions have been employed in the creation of the rate model. As such, staff recommends that Council affirm the previously approved 14.25% rate for FY 2022-2023. In the interest of transparency, Staff further recommends that information about the new Wastewater rates be included in the Proposition 218 notice that will be mailed for the Water Rate public hearing.

FISCAL IMPACT
There is no impact to receiving this report. Further, wastewater collection service costs in Foster City are covered by the rates paid by the users as described in this staff report and its attachment. The costs of these services do not impact the City budget or the General Fund.

Attachment:
Attachment 1 - Bartle Wells Associates Water and Wastewater Rate Study Update Results Memo including 2022-2023 Rate Study Tables and Rate Survey Comparison Analysis
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2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE: March 18th, 2022
TO: City of Foster City/Estero Municipal Improvement District FROM: Bartle Wells Associates
SUBJECT: Water and Wastewater Rate Study Update Results

Attachment 1
173

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While SFPUC wholesale rates were held flat, the District has been gradually increasing its volumetric rates in anticipation of large projected wholesale rate increases by SFPUC.

While the large wholesale rate increases have come to fruition, the District’s rates have been phased in to avoid sharp increases based on a rate smoothing model.

Detailed water rate calculations are shown in APPENDIX C. 174

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Detailed wastewater rate calculations are shown in APPENDIX E.

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Water Enterprise Fund
The District currently provides water service to a population of approximately 3 6,500.

Most of the District’s customers are residential. Table 1 shows the approximately 8,206 accounts/meters that allow for water service and fire protection service.

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The District is meeting its 90-day operating fund reserve target in FY 2022 (estimated to be $3.85 million.)

Note: Rate model only includes fund reserve components available to fund ongoing Source: City of Foster City/Estero Municipal Improvement District Staff 178

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CHART A
179

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Table 3 summarizes the District’s projected operating expenditures which are anticipated to increase over the next five years by about 24%.

8.5% 8.0% 1.3% 1.3% 3.1%
[1] Based on City/District Staff direction
Five Year Projection Annual %
Increase [1]Expenditures
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183

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APPENDIX A

184

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APPENDIX B
185

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APPENDIX C

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TWO TIER HYBRID MODEL
Recommended Rates
188

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Table 3 summarizes the current wastewater service rates.

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Table 4 summarizes the operating expenditures of the enterprise. Costs are expected to remain relatively stable over the next five years.

Projected operating expenditures are anticipated to increase over the next five years by about 21%.

4.1% 3.8% 3.8% 3.8% 3.9%
[1] Based on historical results
Annual %
Increase [1]Expenditures Five Year Projection
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Wastewater Financial Projections

Wastewater projections are shown in APPENDIX E.

San Mateo-Foster City Public Financing Authority:

Table 5 shows debt service estimates for the District’s share of WWTP costs. Annual debt service for the combined total debt issuances is estimated to amount to $5.78 MM by FY 2027.

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CHART B
195

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High strength wastewater (Class C) customers primarily include food -related businesses such as restaurants, bakeries, dairies, wineries, catering, butcher shops and fish markets.

Table 6
City of Foster City/Estero Municipal Improvement District Strength Classifications into Low, Medium/Domestic, and High Strength Dischargers

Low Strength Banks & Financial Institutions
Barber Shops/Hair Salons (hair cutting only)
Post Offices/Government
Retail Stores
Libraries
Schools
Churches, Halls & Lodges
Parking Garages
Warehouses

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High Strength Restaurants
Coffee Shops
Ice Cream Parlors
Catering
Eatery
Bakeries
Butcher Shops
Fish Market/Shop

Note: Wastewater users who have Fats, Oils, and Grease (FOG) waste will be put into the High Strength user category
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The results agree well with the estimated daily flow at 2.58 million gallons per day (mgd) and the measured flow at 2.37 mgd.
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APPENDIX D
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APPENDIX E

Table 1
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Assumptions:

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CHART C

204
DATE: March 28, 2022

TO:

Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim City/District Manager

FROM: Edmund Suen, Finance Director

SUBJECT: INTERNAL SERVICE FUNDS SUMMARY

RECOMMENDATION
City staff seeks reaffirmation of the City Council’s policy on reserve levels and funding methodologies for its Internal Service Funds.

EXECUTIVE SUMMARY
As indicated in Attachment 1, each of the Internal Service Funds (Vehicle Replacement Fund, Equipment Replacement Fund, Information Technology Fund, Building Replacement Fund, and Wastewater Equipment Replacement Fund) is projected to meet targeted reserve levels as of 6/30/2022. The Water Equipment Fund is just $9,000 shy of its target of $3.59 million. The Self-Insurance Internal Service Fund is projected to meet its reserve balance target of $1 million. The Longevity Benefit and PEHMCA Benefit Internal Service Funds reserve balances represent set asides for post-employment liability. Based on the current practice, City staff recommends the continuation of assessments for estimated benefit charges to applicable departments in FY 2022-2023. Lastly, the Compensated Absences Internal Service Fund reserve balance represents the estimated accrued value of earned leave (vacation and sick) upon General Fund employee separation from the City. As 205
such, earned leave payout is charged to this Fund at such time.

BACKGROUND
Internal Service Funds are the mechanism by which the City accumulates funding over time in preparation for known future large purchases and/or other future liabilities. Internal Service funding is a conservative budgeting strategy that has helped Foster City proactively fund necessary expenditures.

The City of Foster City has established six (6) Internal Service Funds to which it transfers funds in preparation for future large expenses. These funds are:
Vehicle Replacement Fund (501) – For staffing costs and purchases related to the vehicle fleet including vehicles and repair equipment. Equipment Replacement Fund (502) – For the purchase of operations equipment with a cost of at least $1,000.
Self-Insurance Fund (503) – For the costs associated with the Insurance and Risk Management program.
Information Technology Fund (504) – For staffing costs and purchases of equipment related to information technology including computers, servers, phone systems, routers, etc.
Building Maintenance Fund (505) – For staffing costs and the upkeep of all City buildings, including paint, HVAC, roofing and equipment to perform building maintenance.
Compensated Absences (509) – For payouts of accrued leave upon termination of employment based upon provisions of various employee Memoranda of Understanding (MOUs) and the City’s Compensation and Benefits Plan.
Water Enterprise Equipment Replacement Fund (408) – For the purchase of operations equipment with a cost of at least $1,000. Wastewater Enterprise Equipment Replacement Fund (458) – For the purchase of operations equipment with a cost of at least $1,000.

Funding is set aside in these funds based on an annual analysis of each Fund’s needs. Balances are impacted by various factors, including interest accumulation on reserves, estimates of replacement values, decisions not to replace items that have been allocated in the funds, or savings on the cost of items compared to the anticipated costs. The Compensated Absences Fund Balance tends to vary from year to year depending upon actual vacation accruals, vacation time taken by staff, the number of retirements, and/or separations from service.
206
The City also has two (2) Internal Service Funds that collect assessments of estimated retiree benefit payments to applicable departments, namely:
Longevity Recognition Benefits Fund (507) – For the payment of Longevity Recognition Benefits post-employment benefits to qualified individuals.
PEMHCA Benefits Fund (508) – For the payment of Public Employees Medical and Hospital Care Act post-employment benefits to qualified individuals.

City staff recommends the continuation of this practice in FY 2022-2023.

ANALYSIS
Internal Service Fund balances are analyzed periodically to ensure that funding is adequate based upon the requirements of each Fund and to determine the scope of any available balances above the calculated requirements. Over the course of the past few months, each Internal Service Fund was analyzed and after deducting funding dedicated to the replacement of equipment and/or the accrued liability, the reserve established by policy is then applied. The resulting balance is considered available as an unassigned fund balance (reserve balance). As a cost savings practice, City staff implemented a 15% chargeback discount on the Vehicle Replacement Fund and Equipment Replacement Fund with no adverse impacts on available Fund Balances. Staff recommends the continuation of this practice for FY 2022-2023 as this discount methodology is expected to limit each Fund’s reserve build-up in future years.

The analysis of Internal Service Fund balances is an integral step in fund management and is done annually as part of the budget process. Detailed discussion about each Internal Service Fund can be found in the separate staff reports presented this evening.

FISCAL IMPACT
City staff seeks the City Council’s reaffirmation of the City’s Policy on reserve levels and funding methodologies for its Internal Service Funds. No immediate fiscal impact is anticipated at this time.
207

Attachment:
Attachment 1 - Analysis of Internal Service Funds Balances 208
ATTACHMENT 1 - ANALYSIS OF INTERNAL SERVICE FUND BALANCES Fund Balance Analysis
Vehicle
Replace-
ment
Fund 501
Equipment
Replace-
ment Fund
502
Self
Insurance
Fund 503
Information
Tech-
nology Fund
504
Building
Main-
tenance
Fund 505
Longevity
Recognition
Fund 507
PEMHCA
Fund 508
Compensated
Absences Fund
509
Water
Enterprise
Equipment
Replacement
Fund 408
Wastewater
Enterprise
Equipment
Replacement
Fund 458
Estimated Ending Fund Balance at 6/30/22 1 4,149,151$ 6,316,487 $ 1,010,172 $ 4,384,714 $ 6,465,844 $ 2,493,121 $ 6,042,277 $ 3,180,931 $ 3,581,463 $ 2,274,580 $ Funds required per detail analysis of each Internal
Service Fund2 3,303,252$ 5,149,913 $ 1,000,000 $ 3,387,019 $ 5,003,059 $ 2,493,121 6,042,277 3,180,931 $ 3,590,592 2,108,634 Projected funds available (required) at 6/30/2022 before minimum reserves 845,899 1,166,574 10,172 997,695 1,462,785 - - - (9,129) 165,946 Equipment Replacement/Building Maintenance
Reserves (minimum $100,000 per fund) (100,000) (100,000) - (100,000) (100,000) - - - - - Fund Surplus (Deficit) available after Vehicles,
Equipment Replacement, Building Maintenance
Reserves 745,899$ 1,066,574$ 10,172 $ 897,695 $ 1,362,785$ - $ - $ - $ (9,129)$ 165,946$ Fund Reallocation To (From) Internal Service Funds - - - - - - - - - - Adjusted Unassigned Fund Balance above Reserves 745,899$ 1,066,574$ 10,172 $ 897,695 $ 1,362,785$ - $ - $ -$ (9,129)$ 165,946$ 1 Estimated Available General Ledger Fund Balance, 6/30/22 2 For Fund 509 (Compensated Absences), this represents the projected accrued liability for earned leave in the General Fund.

City of Foster City
Analysis of Internal Service Funds Balances
Projected as at June 30, 2022
For Funds 501 (Vehicle Replacement), 502 (Equipment Replacement), 504 (Information Technology), and Fund 505 (Building Maintenance), these amounts are estimated resources committed to fund asset replacements/building maintenance as of June 30, 2022
For Fund 503 (Self-Insurance), the targeted reserve is $1 million.

For Fund 507 (Longevity Recognition) and Fund 508 (PEMHCA Benefit), this represents the projected balance accumulated as of 6/30/22.
209
DATE: March 28, 2022

TO:

Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim City/District Manager

FROM: Louis Sun, Public Works Director
Kurt Zander, Buildings and Vehicles Maintenance Manager

SUBJECT: VEHICLE REPLACEMENT FUND OVERVIEW AND INTERNAL SERVICE FUND ALLOCATIONS FISCAL YEAR 2022-2023

RECOMMENDATION
It is recommended that the City Council review this report and its attachments and provide policy direction regarding the development of the Vehicle Replacement Internal Service Fund budget for Fiscal Year 2022-2023.

EXECUTIVE SUMMARY
There are three budget impacts associated with the Vehicle Replacement Fund. The appropriation of funding to replace assets that have reached the end of their useful lives, the transfer of funding for the future replacement of vehicles, and the transfer of funding for the Vehicle Maintenance operation.

The total recommended fiscal impact is $1,742,612, which is approximately 1% less than FY 2021-2022. Details of the cost and distribution of operations are contained in the attachments to this report.

BACKGROUND
The vehicle maintenance and replacement program was created to provide 210
proactive and effective management, maintenance, inspection, repair, and replacement of all City/District vehicles in order to ensure a consistently efficient and safe vehicle fleet of all service vehicle types through established vehicle maintenance procedures, in order for staff to continue to provide the highest quality service to the Foster City community. Although the Vehicle Maintenance Division has experienced a number of significant changes in the division’s reporting relationships and organizational structure since FY 2019- 2020, the daily operations and goals of the division and its personnel have not changed.

The Vehicle Replacement Fund provides for the distribution of costs for fleet management among user departments and funds. It also serves as a funding mechanism for the replacement of vehicles. Setting aside replacement funding and planning for replacement over the life of the vehicles provides for an orderly replacement process.

As a guideline, vehicles in the City’s fleet are expected to achieve at least the following minimum useful lives, and replacement funding is planned according to this schedule in order to provide flexibility, although it is usual for individual vehicles to significantly exceed these minimums. Police cruisers: 5 years
Police motorcycles: 6 years
Sedans: 6-7 years
Maintenance trucks and tractors: 8-13 years
CARES Vehicle (Mobile EOC): 16 years

ANALYSIS
The Vehicle Maintenance Division continually monitors the fleet to ensure that each vehicle continues to effectively serve the needs of the City. The vehicles are subject to on-going comprehensive evaluation of factors such as safety, life expectancy, performance, maintenance record, idling time, mileage, condition, fuel efficiency and sustainability, integrated technology, lighting, and customization to suit department operations. Regardless of assigned useful life, vehicles are only recommended to be replaced when this analysis has demonstrated that replacement is warranted.

The distribution of the 80 vehicles in the City’s fleet is detailed in the attached Internal Service Charges Allocation Summary Fiscal Year 2022-2023. The Vehicle Maintenance Division also maintains approximately 400 pieces of 211
small equipment.

Based on their age, twenty-two (22) vehicles had adequate funding for replacement in Fiscal Year 2022-2023. Of those, staff recommends replacing two (2) regular-duty trucks, a Ford Ranger in the Recreation Division and a Ford F-250 in the Parks Division. This recommendation is based on a thorough review of the maintenance history, usage and condition of the vehicles in question. Staff does not anticipate that deferring the remaining vehicles will have a significant negative impact on City operations or on future scheduled replacements based on the overall condition of the fleet.

Vehicle Maintenance staff continues to evaluate fuel efficient fleet alternatives. The vehicle inventory includes four (4) Toyota Prius hybrids, two (2) Ford C-Max hybrids, one (1) Ford Escape hybrid, and one (1) Ford Focus electric vehicle which collectively reduce the overall fuel consumption of the fleet, based upon number of vehicle miles traveled.

Staff routinely monitors fuel costs, and despite the effect that the current political climate is having on fuel prices, does not anticipate needing an increase to the unleaded or diesel fuel budget at this time. The average fuel cost per gallon for 2021 was $2.50 (unleaded) and $2.18 (diesel), which is trending to be considerably more in Fiscal Year 2022-2023.

FISCAL IMPACT
There are three budget impacts associated with the Vehicle Replacement Fund.

The first budget impact is the appropriation of funding to replace assets that have reached the end of their useful lives. These funds have been accumulated and are available in the Vehicle Replacement Fund. The replacement value of assets that are scheduled for replacement in FY 2022- 2023 is $74,814. Funding for two vehicles which have been ordered in FY 2021-2022 but are not anticipated to be received until FY 2022-2023 is also being carried over.

The second budget impact is the transfer of funding for the future replacement of vehicles. Since FY 2014-1015, only 85% of the total projected vehicle replacement costs are charged back to departments. Because of interest earnings, cost savings associated with purchases and revenue from the sale of replaced vehicles, this fund tends to experience a growing reserve 212
balance. Employing a discounted charge-back methodology reduces the impact to the General Fund while maintaining a sufficient balance to accomplish the necessary vehicle and equipment purchases. The total recommended transfer for future replacement of vehicles is $379,710. This cost is distributed among the various departments and funds based upon the number and type of vehicles that are assigned to them.

The final budget impact is the transfer of funding for the Vehicle Maintenance operation. This cost is distributed among the various departments and funds based upon the number of vehicles assigned to them. The total recommended transfer to fund the Vehicle Maintenance operation is $1,362,901.

A summary of the total fiscal impact of the two components of the budget transfers as distributed among funds is shown in Table 1. Details are shown in the attachments to this report.

A 1% increase ($16,994) to the total Vehicle Maintenance line item budget is due to the following changes:
An increase of approximately $83,200 for Insurance.
An increase of approximately $22,134 for the replacement of vehicles. Of the total, $74,814 is budgeted for two regular-duty trucks scheduled for replacement in FY 2022-23, while $439,764 is carried over from FY 2021-2022 for two large vehicles that were ordered but will not be received before June 30, 2021, and $100,000 was added in contingency funds. The contingency budget was eliminated during budget reductions related to Covid, but is recommended to be reinstated. These funds are used for unanticipated costs, and unused appropriation will be returned to the Vehicle Fund 501 if not needed. A decrease of approximately $90,300 in personnel costs and overhead charges as calculated according to the Cost Allocation Plan related to 213
the reallocation of personnel due to a realignment of the Public Works organizational structure.
An increase of approximately $2,000 related to adjustments to equipment-related purchases in the Internal Service Funds.

Staff routinely monitors fund balances to ensure that adequate funds are available. Based on Mid-Year Financial Review calculations from the Finance Department, the Vehicle Replacement Fund is expected to end Fiscal Year 2021-2022 with an available fund balance of $4,149,151. The amount directly attributable to the replacement of vehicles and equipment through the end of FY 2021-2022 is $3,303,252, and the contingency reserve is $100,000 leaving an excess balance of $745,899 in the fund.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This item supports the mechanism to replace the equipment that supports all of the City’s operations, which enables all of the City’s priority goals, most especially the Public Safety and Facilities and Infrastructure priority areas.

Attachments:
Attachment 1 - Vehicle Replacement Fund Budget Narrative Attachment 2 - Draft Vehicle Replacement Fund Detail Line Item Report Attachment 3 - Vehicle Replacement Fund Budget Comparisons (501- 0560)
Attachment 4 - Vehicle Replacement Fund Internal Service Fund Charges Attachment 5 - Items to be Replaced
Attachment 6 - Items Added or Deleted
Attachment 7 - Changes to Estimated Useful Lives
Attachment 8 - Changes to Replacement Values
214
Attachment 1
Vehicle Replacement Fund
The mission and goal of the Vehicle Maintenance program is to provide management, maintenance, and inspection of all City/District vehicles and provide an efficient and safe vehicle fleet through established vehicle maintenance procedures. The Vehicle Maintenance Division develops ongoing maintenance programs for City vehicles and works to develop a cost-effective inventory system. The Vehicle Replacement Fund provides for the distribution of costs among user departments and replacement of vehicles in a timely manner to accomplish program goals.

Although the Vehicle Maintenance Division has experienced a number of significant changes in the division’s reporting relationships and organizational structure since FY 2019-2020, the day-to-day operations and goals have not changed for the Division’s staff, which consists of the Building/Vehicle Manager (50%), one full-time Mechanic I, and one full-time Small Engine Mechanic with supervisory and administrative support.
215
Attachment 2
Account Name Account String 2021-22
Approved
2022-2023
RecommendedItemization status
PERMANENT SALARIES 501-0560-431-41-10 360,836 287,061 Non-Itemized Account HOURLY & PART TIME SALARY 501-0560-431-41-11 11,765 19,467 Non-Itemized Account OVERTIME 501-0560-431-41-12 1,000 1,000 Non-Itemized Account PERS RETIREMENT 501-0560-431-41-21 38,588 30,021 Non-Itemized Account FLEX ALLOWANCE 501-0560-431-41-35 55,058 46,926 Non-Itemized Account WORKERS COMPENSATION 501-0560-431-41-36 29,072 26,408 Non-Itemized Account OTHER FRINGE BENEFITS 501-0560-431-41-39 17,111 12,156 Non-Itemized Account COMPENSATED ABSENCES 501-0560-431-41-40 11,494 9,245 Non-Itemized Account GASB68 PENSION EXP-PERS 501-0560-431-41-41 78,000 70,000 Non-Itemized Account GASB75 OPEB EXP-PEMHCA 501-0560-431-41-42 5,000 4,000 Non-Itemized Account PEMHCA 501-0560-431-41-54 2,001 1,961 Non-Itemized Account EMPLOYEE BENEFIT-PERS UAL 501-0560-431-41-61 67,878 93,679 Non-Itemized Account GENERAL OFFICE SUPPLIES 501-0560-431-42-43 1,200 Itemized Account OFFICE & JANITORIAL SUPPLIES 501-0560-431-42-43 200 200 Itemization SMALL TOOLS 501-0560-431-42-43 400 400 Itemization
BOOTS/UNIFORMS 501-0560-431-42-43 600 600 Itemization
TOOLS & EQUIP(<5000@ITEM) 501-0560-431-42-45 0 0 Non-Itemized Account MAINT-FACILITY & EQUIP 501-0560-431-42-46 413,500 Itemized Account WASH, DETAIL, TOUCH UP STAFF VEHICLES501-0560-431-42-46 3,000 3,000 Itemization TIRES (REPLACEMENT, REPAIR, FRONT END WORK)501-0560-431-42-46 20,000 20,000 Itemization VEHICLE REPAIRS 501-0560-431-42-46 32,000 32,000 Itemization AUTO PARTS 501-0560-431-42-46 30,000 30,000 Itemization DIESEL FUEL 501-0560-431-42-46 56,000 56,000 Itemization GASOLINE 501-0560-431-42-46 260,000 260,000 Itemization RECYCLING, TIRES DISPOSAL, BATTERIES, FILTERS501-0560-431-42-46 2,500 2,500 Itemization RETROFIT EXHAUST SYSTEMS ON DIESEL VEHICLES501-0560-431-42-46 10,000 10,000 Itemization RENTS AND LEASES 501-0560-431-42-47 800 800 Non-Itemized Account UTILITIES & COMMUNICATION 501-0560-431-42-48 4,000 4,000 Non-Itemized Account CONTRACT, PROF, SPEC SVCS 501-0560-431-42-51 3,500 3,500 Non-Itemized Account MEMBERSHIP,DUES,SUBSCRIPT 501-0560-431-42-53 500 500 Non-Itemized Account TRAVEL,CONFERENCE,MEETING 501-0560-431-42-54 500 500 Non-Itemized Account TRAINING 501-0560-431-42-55 750 750 Non-Itemized Account EQUIP REPLACEMENT CHARGES 501-0560-431-42-56 30,077 30,771 Non-Itemized Account COMM & INFO SERVICES CHGS 501-0560-431-42-57 16,817 18,088 Non-Itemized Account INSURANCE & OTHER COSTS 501-0560-431-42-62 63,735 146,940 Non-Itemized Account ALLOCATION OF OVERHEAD 501-0560-431-42-63 154,882 140,453 Non-Itemized Account DEPRECIATION EXPENSE 501-0560-431-42-68 0 0 Non-Itemized Account Expenses
Worksheet: 501 - Vehicle Replacement Fund Expenses
Proposal: 501 - Vehicle Replacement Fund
Budget: FY 2022-23 EXPENDITURE BUDGET
216
LOSS-DISPOSAL CAP ASSETS 501-0560-431-42-78 0 0 Non-Itemized Account CONTRIBUTION TO FIRE JPA 501-0560-431-42-92 0 0 Non-Itemized Account MOTOR VEHICLES 501-0560-431-43-84 614,578 Itemized Account CITYWIDE VEHICLES 501-0560-431-43-84 592,444 74,814 Itemization ER - HOIST AND DUMP TRUCKS 501-0560-431-43-84 0 439,764 Itemization CONTINGENCY 501-0560-431-43-84 0 100,000 Itemization
MACHINERY & EQUIP >5000 501-0560-431-43-85 0 0 Non-Itemized Account 1,960,508 1,977,502
217
Attachment 3
Vehicle Replacement Fund Budget Comparisons (501-0560)
Account Description
Approved
FY 2021-2022
Requested
FY 2022-2023
Increase
(Decrease) Notes
4110 Permanent Salaries 360,836 287,061 (73,775) 1 4111 Hourly & ParT Time Salaries 11,765 19,467 7,702 2 4112 Overtime 1,000 1,000 - 3 4121 PERS Retirement 38,588 30,021 (8,567) 4 4135 Flex Allowance 55,058 46,926 (8,132) 5 4136 Workers Compensation 29,072 26,408 (2,664) 6 4139 Other Fringe Benefits 17,111 12,156 (4,955) 7 4140 Compensated Absences 11,494 9,245 (2,249) 8 4141 GASB 68 Pension Exp 78,000 70,000 (8,000) 9 4142 GASB75 OPEB EXP-PEMHCA 5,000 4,000 (1,000) 10 4154 PEMHCA 2,001 1,961 (40) 11 4161 EMPLOYEE BENEFIT-PERS U 67,878 93,679 25,801 12 4243 General Office Supplies 1,200 1,200 - 13 4246 Maint-Facility&Equip 413,500 413,500 - 14 4247 Rents and Leases 800 800 - 15 4248 Utilities & Communication 4,000 4,000 - 16 4251 Contract, Prof, Spec Svcs 3,500 3,500 - 17 4253 Membership,Dues,Subscript 500 500 - 18 4254 Travel,Conference,Meeting 500 500 - 19 4255 Training 750 750 - 20 4256 Equip Maintenance Charges 30,077 30,771 694 21 4257 Comm & Info Services Charges 16,817 18,088 1,271 22 4262 Insurance & Other Costs 63,735 146,940 83,205 23 4263 Allocation of Overhead 154,882 140,453 (14,429) 24 4384 Motor Vehicles 592,444 614,578 22,134 25 4385 Machinery & Equip >5000 - - - 26 1,960,508 1,977,502 16,994
Detailed Analysis:

Note 1 Personnel charges calculated by Finance Department Note 2 Personnel charges calculated by Finance Department Note 3 No Change
Note 4 Employee Benefits calculated by Finance Department Note 5 Employee Benefits calculated by Finance Department Note 6 Employee Benefits calculated by Finance Department Note 7 Employee Benefits calculated by Finance Department Note 8 Employee Benefits calculated by Finance Department Note 9 Employee Benefits calculated by Finance Department Note 10 Employee Benefits calculated by Finance Department Note 11 Employee Benefits calculated by Finance Department Note 12 Employee Benefits calculated by Finance Department Note 13 No Change
Note 14 No Change
Note 15 No Change
Note 16 No Change
Note 17 No Change
Note 18 No Change
Note 19 No Change
Note 20 No Change
Note 21 Details provided in VRF Attachments
Note 22 Detailed explanation of charges in IT Budget
Note 23 Detailed explanation of charges in SIF Budget
Note 24 Based on annual update of Cost Allocation Plan
Note 25
Note 26 List of equipment to be replaced is included in budget submittal Hoist Truck and Dump Truck carried over from FY 2021-2022. FY 2022-2023 list of vehicles to be replaced is included in budget submittal
\\MILHOUSE\Tier1-Shared\groups\Budget\Budget 2022-2023\ISF\VRF 2022-23\Attachment 3 - VRF Variance Analysis FY 2022-23\Attachment D Variance Analysis
218
Attachment 4

INTERNAL SERVICE FUND CHARGES
VEHICLE REPLACEMENT FUND 501
Department Charged (Receiving Goods/Services)
Approved
FY 2021-2022
Requested
FY 2022-2023 Variance Notes
0110 CMO Admin 22,487 22,627$ 140 1 0510 Park & Rec Admin 64,744 60,283$ (4,461) 2 0520 Parks Maint 351,038 369,131$ 18,093 3 0610 PD Chief's Office 21,325 21,632$ 307 4 0620 PD Field Ops 368,682 369,474$ 792 5 0630 PD Admin 108,637 102,312$ (6,325) 6 0740 Disaster Preparedness 17,365 17,359$ (6) 7 0810 Planning Admin 43,218 38,239$ (4,979) 8 0830 Building 88,299 73,275$ (15,024) 9 0910 PW Admin & Engineering 62,103 55,902$ (6,201) 10 0920 PW Lagoons & Levees 22,107 22,371$ 264 11 0930 PW Streets 81,885 78,385$ (3,500) 12 401 Water Enterprise 159,790 160,398$ 608 13 451 Wastewater Enterprise 279,810 283,449$ 3,639 14 505 Building Maint 66,992 67,797$ 805 15 Total All Funds 1,758,483 1,742,634 (15,849) Detailed Analysis
Note 1
Note 2 Replacement of fully-funded vehicle restarted funding cycle.

Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Extended the useful life of all vehicles assigned to the division; replacement cost adjustment for all hybrid vehicles and standard 2% inflationary replacement cost for remaining vehicles.

Extended the useful lives of 2 vehicles assigned to the division.

Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Replacement/Restart funding of one fully-funded vehicle; extended useful life of 6 vehicles; cost adjustment for all light-duty trucks and standard 2% inflationary replacement cost increase for Extended the useful life of 1 vehicle assigned to each division.

Extended the useful life of all vehicles assigned to the division; replacement cost adjustment for all hybrid vehicles and standard 2% inflationary replacement cost for remaining vehicles.

Purchased new hoist truck and transferred replacement of equipment portion from ERF to VRF to facilitate future purchases.

Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation Adjustment less than 2% due to minor adjustments of useful lives and standard 2% inflation 219
Attachment 5
City of Foster City -- Vehicle Replacement Fund
Vehicles to be Replaced
For the Year Ended June 30, 2023
Dept / DivVehicle # Vehicle Make / Model Replacement Cost 05-10 80 10 FORD RNGR 40,000 05-20 42 09 FORD F250 34,814 09-30 16 02 HOIST TRUCK VEHICLE (Carryover from FY 21-22) 248,772 09-60 23 01 DUMP TRUCK (Carryover from FY 21-22) 190,992 514,578$
Dept / Div Equipment Description Replacement Cost
NONE
-$
TOTAL 514,578 $
Equipment to be Replaced
For the Year Ended June 30, 2023
City of Foster City -- Vehicle Replacement Fund
220
Attachment 6
City of Foster City
Vehicle Replacement Fund
Items Added To or Deleted From the Replacement Lists
For FY 2022-2023
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
NONE
Total Added -
Items Deleted
NONE
Total Deleted -
Grand Total Added/(Deleted) -
221
Attachment 7
City of Foster City
Vehicle Replacement Fund
Changes to Estimated Useful Lives
For FY 2022-2023
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful
Life
(Years)
Revised
Useful
Life
(Years)
Increase
(Decrease)
Vehicles
08 HI RANGER 05-20 2008 14 16 2 08 FORD RANGER XLT 05-20 2007 15 16 1 10 FORD F250 05-20 2009 13 14 1 08 FORD 750 05-20 2007 15 16 1 11 FORD F250 05-20 2010 12 13 1 10FORD F250 05-20 2009 13 14 1 15 BMW 06-20 2014 8 9 1 11 FORD ESCAPE HYBRID 06-30 2010 12 13 1 07 FORD E-250 VAN 06-30 2006 16 17 1 15 FORD FOCUS 08-10 2014 8 9 1 09 FORD RNGR 08-30 2008 14 15 1 10 TOYOTA PRIUS 08-30 2009 13 14 1 12 TOYOTA PRIUS 08-30 2012 10 11 1 09 FORD RNGR 08-30 2008 14 15 1 13 TOYOTA PRIUS 09-10 2013 9 10 1 09 TOYOTA PRIUS 09-10 2008 14 15 1 09 FORD RANGER 09-10 2008 14 15 1 08 FORD F450 09-30 2007 15 16 1 06 FORD F350 KUV Body 09-70 2005 17 18 1

HYDRO FLUSH UNIT
(Equipment Portion Only) 09-70 2008 15 17 2 Equipment
TESTER-AMP/VOLT 05-60 2001 22 24 2 222
Attachment 8
City of Foster City
Vehicle Replacement Fund
Changes to Replacement Values
For FY 2022-2023
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
VEHICLES*
19 FORD EXPLORER XLT 01-10 7/11/1905 40,000 40,800 800 20 TRANSIT 150 05-10 7/6/1905 40,000 40,800 800 17 FORD TRANSIT 150 05-10 7/8/1905 31,084 40,000 8,916 08 HI RANGER 05-20 6/30/1905 105,687 107,801 2,114 08 FORD F250 05-20 7/13/1905 50,000 55,000 5,000 08 FORD RANGER XLT 05-20 6/29/1905 34,000 40,000 6,000 10 FORD F250 05-20 7/1/1905 34,814 35,511 696 08 FORD 750 05-20 6/29/1905 105,687 107,801 2,114 11 FORD F250 05-20 7/2/1905 50,000 55,000 5,000 08 FORD F250 05-20 7/13/1905 50,000 55,000 5,000 17 FORD F250 05-20 7/9/1905 50,000 55,000 5,000 13 FORD F250 05-20 7/4/1905 34,000 34,680 680 17 FORD F250 05-20 7/8/1905 50,000 55,000 5,000 08 FORD F250 05-20 7/13/1905 50,000 55,000 5,000 10FORD F250 05-20 7/1/1905 50,000 55,000 5,000 11 JD LL 05-20 7/12/1905 90,000 91,800 1,800 14 CASE 580M 05-20 7/5/1905 140,079 142,881 2,802 14 FORD F-250 05-20 7/5/1905 50,000 51,000 1,000 09 FORD F550 05-20 6/30/1905 65,000 66,300 1,300 16 FORD TAURUS 06-10 7/7/1905 35,000 35,700 700 21 POLICE INTERCEPTOR UTILITY 06-20 7/13/1905 60,000 61,200 1,200 21 POLICE INTERCEPTOR UTILITY 06-20 7/13/1905 60,000 61,200 1,200 18 FORD CROWN VIC (SLICK TOP) 06-20 7/9/1905 60,000 61,200 1,200 20 POLICE INTERCEPTOR SEDAN 06-20 7/11/1905 60,000 61,200 1,200 20 POLICE INTERCEPTOR SEDAN 06-20 7/11/1905 60,000 61,200 1,200 20 POLICE INTERCEPTOR UTILITY 06-20 7/11/1905 60,000 61,200 1,200 20 POLICE INTERCEPTOR SEDAN 06-20 7/11/1905 60,000 61,200 1,200 21 POLICE INTERCEPTOR UTILITY 06-20 7/13/1905 60,000 61,200 1,200 21 POLICE INTERCEPTOR UTILITY 06-20 7/13/1905 60,000 61,200 1,200 20 POLICE INTERCEPTOR SEDAN 06-20 7/11/1905 60,000 61,200 1,200 16 BMW 06-20 7/8/1905 32,000 35,000 3,000 09 BMW 06-20 6/23/1905 31,084 31,706 622 15 BMW 06-20 7/6/1905 32,000 35,000 3,000 16 FORD F250 06-20 7/7/1905 36,240 36,965 725 10 FORD ESCAPE 06-20 7/9/1905 40,227 41,031 805 11 FORD ESCAPE HYBRID 06-30 7/2/1905 38,545 39,315 771 13 FORD POLICE INTERCEPTOR UTILITY06-30 7/12/1905 40,000 40,800 800 17 FORD C-MAX 06-30 7/8/1905 33,571 34,243 671 13 FORD TAURUS 06-30 7/7/1905 35,000 35,700 700 07 FORD E-250 VAN 06-30 6/28/1905 40,000 40,800 800 17 FORD C-MAX 08-10 7/8/1905 33,571 34,243 671 15 FORD FOCUS 08-10 7/6/1905 32,913 33,571 658 09 FORD RNGR 08-30 6/30/1905 40,000 40,800 800 223
City of Foster City
Vehicle Replacement Fund
Changes to Replacement Values
For FY 2022-2023
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
10 TOYOTA PRIUS 08-30 7/1/1905 32,913 35,000 2,087 12 TOYOTA PRIUS 08-30 7/4/1905 32,267 32,913 645 09 FORD RNGR 08-30 6/30/1905 40,000 40,800 800 13 TOYOTA PRIUS 09-10 7/5/1905 32,913 35,000 2,087 09 TOYOTA PRIUS 09-10 6/30/1905 33,571 35,000 1,429 09 FORD RANGER 09-10 6/30/1905 40,000 40,800 800 16 FORD F250 09-20 7/7/1905 45,000 45,900 900 13 FORD F250 09-30 7/4/1905 30,475 31,084 609 08 FORD F450 09-30 6/29/1905 70,000 71,400 1,400 16 FORD F250 09-30 7/7/1905 45,000 45,900 900 02 HOIST TRUCK VEHICLE+EQUIP 09-30 7/14/1905 229,068 350,000 120,932 17 FORD F350 09-60 7/8/1905 54,122 55,204 1,082 17 FORD F350 09-60 7/8/1905 54,122 55,204 1,082 16 FORD F350 09-60 7/7/1905 54,122 55,204 1,082 01 DUMP TRUCK 09-60 7/13/1905 189,426 193,214 3,789 15 FORD F250 09-60 7/6/1905 30,000 30,600 600 17 FORD F150 (Meter Read) 09-60 7/8/1905 30,000 30,600 600 20 CAT 420 ST HRC 09-60 7/13/1905 140,000 142,800 2,800 18 FORD E350-CCTV VAN 09-70 7/9/1905 62,029 63,270 1,241 17 FORD ESCAPE 09-70 7/8/1905 29,866 30,463 597 19 FORD F150 09-70 7/10/1905 34,132 34,814 683 19 FORD F350 09-70 7/10/1905 50,677 51,691 1,014 17 FORD F350 09-70 7/8/1905 54,122 55,204 1,082 15 SEWER JET 09-70 7/6/1905 248,277 253,242 4,966 99 HOIST TRUCK 09-70 7/5/1905 189,533 193,324 3,791 06 FORD F350 KUV Body 09-70 6/27/1905 47,248 48,193 945 19 FORD F350 09-70 7/10/1905 53,060 54,122 1,061 FORD F550 (Hydro Flush - Truck Portion Only)09-70 7/4/1905 54,855 55,952 1,097 HYDRO FLUSH UNIT (Equipment Portion Only)09-70 6/30/1905 57,359 58,507 1,147 16 FREIGHTLINER SEWER VAC 09-70 7/7/1905 347,413 354,362 6,948 18 FORD TRANSIT 250 05-50 7/9/1905 40,000 40,800 800 16 FORD TRANSIT 05-50 7/8/1905 40,000 40,800 800 16 FORD TRANSIT 05-50 7/8/1905 40,000 40,800 800 18 FORD F250 05-60 7/9/1905 50,000 51,000 1,000 15 FORD F250 05-20 7/6/1905 35,000 35,700 700 Subtotal - Changes to Vehicle Replacement
Values 4,837,072 5,100,113 263,041 EQUIPMENT^
5 STATION FLUID DISPENSER 05-60 6/18/1905 7,926 8,025 99 AIR COMPRESSOR - CY Garage 05-60 7/8/1905 8,000 8,100 100 AIR COMPRESSOR - VM Truck 05-60 7/9/1905 3,114 3,153 39 DIESEL DISPENSER 05-60 7/12/1905 11,072 11,210 138 DIESEL MONITOR SYST 05-60 7/12/1905 34,378 34,808 430 224
City of Foster City
Vehicle Replacement Fund
Changes to Replacement Values
For FY 2022-2023
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
DIESEL TANK (X2) 05-60 7/12/1905 105,719 107,040 1,321 FORD SCAN / SCOPE 05-60 7/4/1905 12,301 12,455 154 JACK HYDRAULIC 20T 05-60 6/26/1905 5,522 5,591 69 PETROCARD FUELING SYSTEM 05-60 7/12/1905 27,815 28,163 348 TESTER-AMP/VOLT 05-60 6/23/1905 2,265 2,293 28 TIRE BALANCING MACHINE 05-60 7/5/1905 7,000 7,088 88 TIRE CHANGING MACHINE 05-60 7/5/1905 7,000 7,088 88 UNLEADED GAS DISPENSER 05-60 7/12/1905 11,093 11,232 139 UNLEADED GAS DISPENSER 05-60 7/12/1905 11,093 11,232 139 UNLEADED GAS MONITORING SYST05-60 7/12/1905 34,378 34,808 430 UNLEADED FUEL TANK 05-60 7/12/1905 61,372 62,139 767 UNLEADED GAS DISPENSER 05-60 7/12/1905 62,548 63,330 782 VEHICLE LIFT - DRIVE ON 05-60 7/10/1905 50,000 50,625 625 VEHICLE LIFT - SIDE POST 05-60 6/26/1905 50,000 50,625 625 Subtotal - Changes to Equipment
Replacement Values 512,596 519,003 6,407 Grand Total - Changes to all Replacement Values 5,349,668 5,619,117 269,449 * Vehicles are assumed to increase by 2% per year unless otherwise adjusted ^ Equipment is assumed to increase by 1.25% per year unless otherwise adjusted. 225
DATE: March 28, 2022

TO: Mayor and Members of the City Council

VIA: Kevin Miller, Interim City Manager

FROM: Edmund Suen, Finance Director
Andra Lorenz, Principal Management Analyst

SUBJECT: EQUIPMENT REPLACEMENT FUND BUDGET AND INTERNAL SERVICE CHARGES FOR FY 2022-2023

RECOMMENDATION
It is recommended that the City Council review this report and its attachments and provide policy direction on the proposed Equipment Replacement Fund budget, including the scheduled replacement purchases and Equipment Replacement Fund charges in the Fiscal Year 2022-2023 Preliminary Budget as outlined.

EXECUTIVE SUMMARY
The Equipment Replacement Fund was developed for the purpose of reserving the funding needed to replace high-value assets. These assets are listed along with their replacement costs and estimated useful lives and then funding is set aside each year in an amount adequate to fund the replacement at the right time. Every asset was reviewed and replacement values and useful life estimates were adjusted with the best information currently available about each asset. The total budgeted for the replacement of individual items in FY 2022-2023 is $724,825 and the total budget transfer to the Equipment Replacement Funds is $1,156,285. There is sufficient fund balance available for these items.
226

BACKGROUND
The Equipment Replacement Fund was developed for the purpose of reserving the funding needed to replace high-value assets. There are three Equipment Replacement Fund lists, one each for the General Fund, Water Fund, and Wastewater Funds. General Fund Equipment Replacements reside in the Internal Services fund group. The Water and Wastewater Equipment Replacements reside in their respective Enterprise Fund groups.

All changes to the fund asset listings are summarized in the attachments to this report.

ANALYSIS
Every asset on each of the three Equipment Replacement Fund lists was carefully reviewed by the Fund Administrator and the Department that uses the asset. Staff did an analysis of all assets, adjusting replacement values and useful life estimates to accurately reflect the best information currently available about each asset. Assets that were no longer needed were removed from the list and existing assets were added to the lists as appropriate. The attached lists represent staff’s recommendation for the most efficient maintenance and replacement of equipment assets.

Attached are the summary spreadsheets for the Equipment Replacement Fund. There are not significant changes to the fund assets.

FISCAL IMPACT
There are two budget impacts associated with the Equipment Replacement Fund:
Budgeted cost to replace assets that have reached the end of their useful lives
Annual transfer to reserve funding for replacements (replacement charge)
Replacement of Assets Scheduled for Replacement
The funding to replace assets that have reached the end of their useful lives is appropriated in the respective Equipment Replacement Funds. The replacement value of assets that are scheduled for replacement in FY 2022- 2023 is summarized in Table 1.
227
Annual Replacement Charges
Replacement charges are the functional mechanism by which funding for assets is transferred from the General, Water and Wastewater Operating Funds to the respective Equipment Replacement Funds so that funding is available for replacement when an asset reaches the end of its useful life.

Replacement charges are budgeted in the Department line items for those assets assigned to them. Replacement charges vary by year, based on purchase cycles and annual analysis of the asset costs.

Since FY 2013-14, only 85% of the total projected replacement cost has been charged back to departments for the General Fund. Because the annual replacement charge calculation does not take into consideration interest earnings in the fund and cost savings associated with purchases, this fund tends to experience a growing reserve balance. Using an 85% charge-back methodology reduces the impact to the General Fund while maintaining a sufficient balance to accomplish the necessary equipment purchases. Staff believes this is a sustainable and reasonable approach to implement on an on-going basis. For Fiscal Year 2022-2023, the difference between 100% and 85% chargeback methodologies is approximately $67,000. Based on a similar fund balance analysis for the Water and Wastewater Enterprise Funds, balances were not excessive, so staff does not propose a replacement charge reduction in these funds.

Table 2 summarizes the annual replacement charges for Fiscal Year 2022- 2023, and a general overview of the reasons for the changes in Replacement Charge is included below.
228
General Fund. The most significant adjustment in the General Fund is that the adjustment of a number of Parks projects to align with the Capital Improvement Plan, combined with a push in FY 2021-2022 to fully fund several playground installations, resulted in an overall decrease in replacement charges for playground equipment which, along with other adjustments, resulted in a reduction in charges to the Parks Division of $208,000 as shown in Attachment 4. In addition, the Recreation Division increased and accelerated funding in the previous two fiscal years in order to replace the Gas Kiln in FY 2022-2023, which has now reset to normal levels.
Water Fund. The most significant adjustment in the Water Fund is that the Division added a new category “Large Meter” pools in FY 2021- 2022. These meters represented a large dollar amount that had to be built up quickly. As the pools are purchased, the replacement cost is able to be spread across a much longer timeframe, which significantly reduces the replacement cost. That reduction is offset by other adjustments in the fund, including a built-in cost escalator of 5% per year for all categories of water meters.
Wastewater Fund. There are no significant adjustments in the Wastewater Fund, just minor adjustments to replacement costs and useful lives in items across the fund.

Fund Balances
Table 3 shows that there is sufficient funding for the amount committed to the replacement of identified equipment through the end of FY 2021-2022 based upon a Finance Department Mid-Year Financial analysis.
229
Based on the above discussion of the fund balance, the Equipment Replacement Fund is adequately funded. While the Water Fund is slightly under the funding requirement, staff advises a “wait and see” approach over the next fiscal year. Staff will continue to monitor the fund balances to ensure that adequate funding remains available to address the needs of the operation.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This item supports the mechanism to replace the equipment that supports all of the City’s operations, which enables all of the City’s priority goals, most especially the Facilities and Infrastructure priority area and the Public Safety priority area.

Attachments:

General Fund Details
Attachment 1 - Budget Narrative
Attachment 2 - Equipment Replacement Fund Detail Line Item Report Attachment 3 - Variance Analysis of 502 Equipment Replacement Fund Attachment 4 –Internal Service Fund Charges Equipment Replacement Fund 502
Attachment 5 - Items to be Replaced
Attachment 6 - Items Added To or Deleted From the Equipment Replacement List
Attachment 7 - Changes to Estimated Useful Lives
Attachment 8 - Changes to Replacement Values
Water Enterprise Fund Details
Attachment 9 - Equipment Replacement Fund Detail Line Item Report 230
Attachment 10 - Variance Analysis of 408 Equipment Replacement Fund
Attachment 11 - Internal Service Fund Charges Equipment Replacement Fund 408
Attachment 12 - Items to be Replaced
Attachment 13 - Items Added To or Deleted From the Equipment Replacement List
Attachment 14 - Changes to Estimated Useful Lives
Attachment 15 - Changes to Replacement Values
Wastewater Enterprise Fund Details
Attachment 16 - Equipment Replacement Fund Detail Line Item Report Attachment 17 - Variance Analysis of 458 Equipment Replacement Fund
Attachment 18 - Internal Service Fund Charges Equipment Replacement Fund 458
Attachment 19 - Items to be Replaced
Attachment 20 - Items Added To or Deleted From the Equipment Replacement List
Attachment 21 - Changes to Estimated Useful Lives
Attachment 22 - Changes to Replacement Values
231
Attachment 1
Equipment Replacement Fund
This fund was established to provide for the timely and orderly replacement of equipment valued over $1,000. This internal service fund allows the City to plan ahead for the replacement of its equipment. The expenditure figure represents the schedule of equipment to be replaced during the fiscal year and deemed to be in need of replacement.

A consistent methodology is used to capture replacement funds for operating department replacement needs. Individually significant assets (over $1,000), or a pool of assets (which may be less than $1,000 individually, but when pooled together exceed $1,000) are assigned replacement values and estimated useful lives. Operating departments are then charged an annual replacement charge such that the replacement value is available upon expiration of the asset. Any changes to replacement values and/or estimated useful lives that occur subsequent to the asset being placed on the Equipment Replacement list are handled on a prospective (or “go-forward”) basis.

This Fund accounts for replacement of assets other than those assets related to Water Operations or Wastewater Operations (which are accounted for in those respective Enterprise funds), or those assets specifically relating to the activities of Vehicle Replacement, Information Technology, and Building Maintenance. 232
Attachment 2
Account Name Account String 2021-22
Approved
2022-2023
RecommendedItemization status
TOOLS & EQUIP(<5000@ITEM) 502-0110-413-42-45 42,600 25,100 Non-Itemized Account MACHINERY & EQUIP >5000 502-0110-413-43-85 239,600 Itemized Account Equipment Replacement - GF 502-0110-413-43-85 273,500 189,600 Itemization Emergency Replacement 502-0110-413-43-85 50,000 50,000 Itemization FC PEG CHANNEL CAPITAL 502-0110-413-43-87 8,400 8,400 Non-Itemized Account 374,500 273,100
Meta Information:

Expenses
Worksheet: 502 - Equipment Replacement Fund Expenses
Proposal: 502 - Equipment Replacement Fund
Budget: FY 2022-23 5 YEAR EXPENDITURE BUDGET
233
Attachment 3
Equipment Replacement Fund - General Fund
Account Description
Approved
FY 2021-2022
Requested
FY 2022-2023
Increase
(Decrease) Notes
4246 Tools and Equipment 42,600 25,100 (17,500) 1 4385 Equipment Replacement - General Fund 323,500 239,600 (83,900) 1 4387 Equipment Replacement - PEG Equipment 8,400 8,400 - 1 374,500 273,100 (101,400)
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet 234
Attachment 4

INTERNAL SERVICE FUND CHARGES
EQUIPMENT REPLACEMENT FUND 502
Approved
FY 2021-22
Requested
FY 2022-23 Variance Notes
0230 Comm/Clerk Communications 14,580 23,641 9,061 1 0510 Park & Rec Admin 30,876 20,266 (10,610) 2 0520 Parks Maint 362,573 154,139 (208,434) 3 0525 Facilities 13,218 9,418 (3,800) 4 0620 PD Field Ops 41,902 29,263 (12,639) 5 0630 PD Admin 55,008 55,008 (0) 6 0740 City Manager EOC 8,773 8,773 (0) 7 0920 PW Lagoons & Levees 58,671 56,960 (1,711) 8 0930 PW Streets 21,879 14,993 (6,886) 9 1010 Council 6,517 5,723 (794) 10 1110 Finance Administration 181 181 (0) 11 1210 HR Admin - 1,360 1,360 12 Total General Fund 614,178 379,723 (234,455) Detailed Analysis
Note 1 Increase in replacement cost for Crestron programming, production switching and cameras.

Note 2 Accellerated replacement of gas kiln completed, along with minor tweaks to other items.

Note 3 Project alignment with CIP combined with full funding for playground replacements.

Note 4 Extension of useful lives of several fully funded items.

Note 5 Extension of useful lives of body-worn cameras and minor adjustments to other items.

Note 6 No change
Note 7 No change
Note 8 Extension of useful life of boat and trailer and removal of Level Measuring Unit from list.

Note 9 Removal of Centrifugal Pump and T16 Equipment from list.

Note 10Accellerated replacement of Council chairs complete/refunding; conference room chair replacement increased Note 11No change
Note 12Fully funded assets appropriated for replacement and replacement charges restarted.

Department Charged (Receiving Goods/Services)
235
Attachment 5
City of Foster City Equipment Replacement Fund - General Fund Items to be Replaced
For the Year Ended June 30, 2023
Department Item Description
Replacement
Cost
12-10 Citywide Gym Equipment - City Hall Location 3,500 12-10 Citywide Gym Equipment - PD Location 4,500 05-10 Ice machine (Vibe) 3,000
05-10 Patio Furniture - Community Center 3,500 05-10 Volt Byer Elct Kiln 3,900
05-25 6-foot tables (12) - (Sr. Wing) 3,000 06-20 Colt(AR-15) Ancillary Equipment - SWAT 3,700 Total Tools and Equipment up to $5,000 25,100$
Department Item Description
Replacement
Cost
10-10 Council Chambers Dais Chairs (10) 10,000 05-10 Bailey Gas Kiln 50,000
05-20 John Deere Field Groomer/ Edgewater (1200A) 22,000 05-20 Mower #3 - Toro Z 16,500
05-20 Mower #5 - Toro Z 16,500
05-20 Mower #7 - Toro Z 16,500
05-20 Scoreboard - Edgewater Park 20,000 05-25 8-foot Tables - Bluebird/Spray 8,400 05-25 Oval Tables -- Pool E (7) 6,000 05-25 White Lagoon Room Chairs (250) 15,000 06-20 Colt(AR-15) Ancillary Equipment - Patrol 8,700 Total Capital Outlay - Machinery and Equipment Over $5,000189,600$ Department Item Description
Replacement
Cost
02-30 Document Camera 8,400
Total PEG Funding Eligible Items 8,400$
TOTAL (ALL ITEMS) 223,100$
236
Attachment 6
City of Foster City
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
Fitness Court - Shorebird Park05-20 2019 200,000
Total $ 200,000
Description
Depart
ment
Date
Purchased
Replacement
Value Comments (if any)
Items Deleted
MOBILE RADIOS 09-20 2016 2,500 25% of Pooled Asset
4-INCH CENTRIFUGAL PUMP09-30 2009 5,000
Equipment on T16 09-30 2021 110,000 Transferred to VRF
MOBILE RADIOS 09-30 2016 2,500 25% of Pooled Asset
Total $ 120,000
Total Replacement Value Impact 80,000$
Equipment Replacement Fund (General Fund)
Items Added To or Deleted From the Equipment Replacement List For FY 2022-2023
237
Attachment 7
City of Foster City
Equipment Replacement Fund (General Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful
Life
(Years)
Revised
Useful
Life
(Years)
Increase
(Decrease)
Council Chambers Conference Room Chairs (30)10-10 2002 22 25 3 Document Camera 02-30 2017 4 5 1 Oven/Stove - Bluebird 05-10 2014 10 11 1 Oven/Stove - Lagoon 05-10 2014 10 11 1 Security Camera System (RC, Sr Ctr, Vibe) 05-10 2014 8 9 1 50-Gallon Turf Sprayer - CY 05-20 2010 13 15 2 Arrowboard/Trailer - CY 05-20 2009 15 16 1 Billy Goat Blower/Ryan B 05-20 2010 13 14 1 Blue Bird Sod Cutter/ SCP 05-20 2014 9 10 1 Graco Field Lazer SCP #2 05-20 2013 9 10 1 John Deere Elec. Utility Vehicle/ Ryan Park (TE) 05-20 2015 8 9 1 Magnum Water Tank Trailer 500 Gal CY Bay/ CY05-20 2004 18 19 1 Mower - Levee Flail 05-20 2015 9 11 2 Playground Equipment - BOOTHBAY PARK FAMILY LOT05-20 2003 19 22 3 Playground Equipment - CATAMARAN PARK 05-20 2015 15 16 1 Playground Equipment - ERCKENBRACK PARK05-20 2017 16 15 (1) Playground Equipment - GULL PARK 05-20 2001 21 26 5 Playground Equipment - GULL PARK TOT LOT 05-20 2007 16 20 4 Playground Equipment - KETCH PARK 05-20 2015 15 16 1 Playground Equipment - KILLDEER PARK 05-20 2019 15 14 (1) Playground Equipment - MARLIN PARK 05-20 2001 21 26 5 Playground Equipment - RECREATION CENTER TOT LOT05-20 2000 22 25 3 Playground Equipment - SHAD PARK 05-20 2004 18 25 7 Playground Equipment - SUNFISH PARK 05-20 2004 18 24 6 Playground Equipment - TURNSTONE PARK 05-20 2017 15 11 (4) Turfco-Top Dresser/ CY 05-20 2008 15 16 1 8-foot Tables - Lagoon 05-25 2017 5 6 1 8-foot Tables - Crane/Mist 05-25 2013 9 11 2 Community Center Wind Room Tables (15) 05-25 2012 11 13 2 Community Center Classroom Tables (15) 05-25 2018 6 7 1 Community Center Wind Room Chairs (120) 05-25 2012 11 13 2 Body-Worn Cameras 06-20 2017 5 6 1 Less Lethal Weapons (DefTec) (11) 06-20 2001 21 22 1 Boat - 19' Boat and Trailer 09-20 2002 22 25 3 PAINT SPRAYER-AIRLESS 09-30 2017 7 9 2 Signal Controllers (25) 09-30 2006 16 17 1 For FY 2022-2023
238
Attachment 8
City of Foster City
Equipment Replacement Fund (General Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
Council Chambers Conference Room Chairs (30)10-10 2002 8,000 30,000 22,000 Crestron Control System (Programming) 02-30 2020 29,000 35,000 6,000 Production Switching and Graphics 02-30 2017 24,000 30,000 6,000 Room Cameras 02-30 2017 41,200 50,000 8,800 50-Gallon Turf Sprayer - CY 05-20 2010 9,500 12,000 2,500 Aerator (Tow) / CY 05-20 2014 10,000 12,000 2,000 Magnum Water Tank Trailer 500 Gal CY Bay/ CY05-20 2004 8,000 9,500 1,500 Turfco-Top Dresser/ CY 05-20 2008 21,000 22,000 1,000 Oval Tables -- Pool B (4) 05-25 2010 2,550 3,000 450 Boat - 19' Boat and Trailer 09-20 2002 35,000 45,000 10,000 Portable Generator 09-30 2017 2,500 7,500 5,000 TOTAL 190,750 256,000 65,250
For FY 2022-2023
239
Attachment 9
Account Name Account String 2021-22
Approved
2022-2023
RecommendedItemization status Difference
MACHINERY & EQUIP >5000408-0110-413-43-85 207,500 192,875Non-Itemized Account(14,625) 207,500 192,875 (14,625)
Meta Information:

Expenses
Worksheet: 408 - Water - Equipment Replacement Fund Expenses Proposal: 408 - Water - Equipment Replacement Fund
Budget: FY 2022-23 5 YEAR EXPENDITURE BUDGET
240
Attachment 10
Equipment Replacement Fund - Water Fund
Account Description
Approved
FY 2021-2022
Requested
FY 2022-2023
Increase
(Decrease) Notes
4385 Machinery and Equipment - Water Fund 207,500 192,875 (14,625) 1 207,500 192,875 (14,625)
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet 241
Attachment 11

INTERNAL SERVICE FUND CHARGES
WATER EQUIPMENT REPLACEMENT FUND 408
Approved
FY 2021-22
Requested
FY 2022-23 Variance Notes
401-0960 Water Distribution System 633,532 510,436 (123,096) 1 Total Water Fund 633,532 510,436 (123,096) Detailed Analysis
Note 1 Extended useful lives of several assets.

Department Charged (Receiving Goods/Services)
242
Attachment 12
City of Foster City -- Equipment Replacement Fund (Water) Items to be Replaced
For the Year Ended June 30, 2023
Department Item Description
Replacement
Cost
09-60* CORP YARD GYM EQUIPMENT (1/2 WF, 1/2 WWF) 1,500
TOTAL Tools and Equipment up to $5,000 Per Unit 1,500
Department Item Description
Replacement
Cost
09-60* WATER METER REPLACEMENT - EMERGENCY POOL D41,375 09-60* Large (4" 6" 8") Meter with Radio Heal Pool B 150,000 Total Capital Outlay - Machinery and Equipment Over $5,000191,375 TOTAL (ALL ITEMS) 192,875
243
Attachment 13
City of Foster City
Equipment Replacement Fund (Water Fund)
Items Added To or Deleted From the Equipment Replacement List Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added

WATER BOOSTER PUMPHOUSE
ENGINES EMISSIONS ANALYZER 09-60* 2019 9,000 Added Total $ 9,000
Items Deleted
MOBILE RADIOS 09-60* 2016 2,500 25% of Pooled Asset Removed Total $ 2,500
Total Replacement Value Impact 6,500$
For FY 2022-2023
244
Attachment 14
City of Foster City
Equipment Replacement Fund (Water Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful Life
(Years)
Revised
Useful Life
(Years)
Increase
(Decrease)
4" PORT METER TESTER 09-60* 2000 23 25 2 LEAK COROLLATION SYSTEM09-60* 2014 9 11 2 PROPANE GAS UNIT 09-60* 2008 15 16 1 For FY 2022-2023
245
Attachment 15
City of Foster City
Equipment Replacement Fund (Water Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
ALUMINUM SHORING 09-60* 2007 12,000 14,000 2,000$
HONDA EB3000C GENERATOR - UNIT 2009-60* 2016 2,200 2,500 300$ HONDA EB3000C GENERATOR - UNIT 2109-60* 2016 2,200 2,500 300$ HONDA EB3000C GENERATOR - UNIT 2209-60* 2015 2,200 2,500 300$

WATER METER REPLACEMENT -
EMERGENCY POOL A 09-60* 2019 40,000 42,000 2,000$

WATER METER REPLACEMENT -
EMERGENCY POOL B 09-60* 2020 40,000 42,000 2,000$

WATER METER REPLACEMENT -
EMERGENCY POOL C 09-60* 2021 40,000 42,000 2,000$

WATER METER REPLACEMENT -
EMERGENCY POOL D 09-60* 2010 40,000 41,375 1,375$

WATER METER REPLACEMENT -
EMERGENCY POOL E 09-60* 2011 40,000 42,000 2,000$
3/4" Measuring Chamber Register with Radio
Read Heads POOL A 09-60* 2007 611,002 641,552 30,550$
3/4" Measuring Chamber Register with Radio
Read Heads POOL B 09-60* 2008 576,839 605,681 28,842$
3/4" Measuring Chamber Register with Radio
Read Heads POOL C 09-60* 2009 373,359 392,026 18,668$
3/4" Measuring Chamber Register with Radio
Read Heads POOL D 09-60* 2010 525,074 551,328 26,254$
3/4" Measuring Chamber Register with Radio
Read Heads POOL E 09-60* 2011 783,971 823,169 39,199$
3/4" Measuring Chamber Register with Radio
Read Heads POOL F 09-60* 2012 820,459 861,482 41,023$
1" Meter with Radio Head POOL A 09-60* 2007 5,940 6,237 297$ 1" Meter with Radio Head POOL B 09-60* 2008 13,859 14,552 693$ 1" Meter with Radio Head POOL C 09-60* 2009 64,740 67,977 3,237$ 1" Meter with Radio Head POOL D 09-60* 2010 41,690 43,774 2,084$ 1" Meter with Radio Head POOL E 09-60* 2011 64,521 67,747 3,226$ 1" Meter with Radio Head POOL F 09-60* 2012 63,339 66,506 3,167$ 1-1/2" Meter With Radio Head POOL B09-60* 2008 7,669 8,053 383$ 1-1/2" Meter With Radio Head POOL C09-60* 2009 52,870 55,514 2,644$ 1-1/2" Meter With Radio Head POOL D09-60* 2010 11,639 12,221 582$ 1-1/2" Meter With Radio Head POOL E09-60* 2011 4,165 4,373 208$ 1-1/2" Meter With Radio Head POOL F09-60* 2012 2,493 2,618 125$ 2" Meter With Radio Head POOL A 09-60* 2007 9,214 9,674 461$ 2" Meter With Radio Head POOL B 09-60* 2008 184,265 193,478 9,213$ 2" Meter With Radio Head POOL C 09-60* 2009 126,213 132,523 6,311$ For FY 2022-2023
246
City of Foster City
Equipment Replacement Fund (Water Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
For FY 2022-2023
2" Meter With Radio Head POOL D 09-60* 2010 44,968 47,217 2,248$ 2" Meter With Radio Head POOL E 09-60* 2011 34,596 36,326 1,730$ 2" Meter With Radio Head POOL F 09-60* 2012 19,851 20,843 993$ 3" Meter with Radio Head POOL B 09-60* 2008 10,250 10,763 513$ 3" Meter with Radio Head POOL C 09-60* 2009 31,898 33,493 1,595$ 3" Meter with Radio Head POOL D 09-60* 2010 46,759 49,097 2,338$ 3" Meter with Radio Head POOL E 09-60* 2011 46,759 49,097 2,338$ 3" Meter with Radio Head POOL F 09-60* 2012 102,931 108,077 5,147$ Large (4" 6" 8") Meter with Radio Heal Pool A09-60* 2021 150,000 157,500 7,500$ Large (4" 6" 8") Meter with Radio Heal Pool C09-60* 2009 150,000 157,500 7,500$ Extra Large (10") Meter with Radio Head Pool A09-60* 2011 22,000 23,100 1,100$ TOTAL 5,221,930 5,484,372 262,442
*Water Meters are calculated to increase by 5% per year. 247
Attachment 16
Account Name Account String 2021-22
Approved
2022-2023
RecommendedItemization status Difference
MACHINERY & EQUIP >5000458-0110-413-43-85 128,000 308,850Non-Itemized Account180,850 128,000 308,850 180,850
Meta Information:

Expenses
Worksheet: 458 - Wastewater - Equipment Replacement Fund Expenses Proposal: 458 - Wastewater - Equipment Replacement Fund Budget: FY 2022-23 5 YEAR EXPENDITURE BUDGET
248
Attachment 17
Equipment Replacement Fund - Wastewater Fund
Account Description
Approved
FY 2021-2022
Requested
FY 2022-2023
Increase
(Decrease) Notes
4385 Machinery and Equipment - Wastewater Fund 128,000 308,850 180,850 1 128,000 308,850 180,850
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet 249
Attachment 18

INTERNAL SERVICE FUND CHARGES
WASTEWATER EQUIPMENT REPLACEMENT FUND 458
Department Charged (Receiving Goods/Services)
Approved
FY 2021-22
Requested
FY 2022-23 Variance Notes
451-0970 Wastewater Collection System 254,683 266,126 11,443 1 Total Wastewater Fund 254,683 266,126 11,443 Detailed Analysis
Note 1 Removal of mobile radios from the list.
250
Attachment 19
Equipment Replacement Fund (Wastewater Collection System) Items to be Replaced
For the Year Ended June 30, 2023
Department Item Description
Replacement
Cost
09-70* Corporation Yard Gym Equipment (1/2 WF, 1/2 WWF) 1,500 TOTAL Tools and Equipment up to $5,000 1,500$
Department Item Description
Replacement
Cost
09-70* 150 KW MOBIL GEN 120,000
09-70* Pumps (Non-LS 59) Pool G 50,000 09-70* DRY DECK LS FLOW METERS 25,000 09-70* GAS DETECTORS (4 units + calibration station) 20,000 09-70* FORKLIFT 60,000
09-70* PLUG AND CHECK VALVES Pool A 32,350 TOTAL Capital Outlay - Machinery and Equipment Over $5,000307,350 TOTAL (ALL ITEMS) 308,850$
251
Attachment 20
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Items Added To or Deleted From the Equipment Replacement List Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
NONE
Total -
Items Deleted
CHART RECORDER 09-70* 2007 7,500
MOBILE RADIOS 09-70* 2016 2,500 25% of Pooled Asset Total 10,000$
Total Replacement Value Impact (10,000)$
For FY 2022-2023
252
Attachment 21
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful Life
(Years)
Revised
Useful Life
(Years)
Increase
(Decrease)
150 KW MOBIL GEN 09-70* 2002 21 20 (1) 24" EXPANSION JOINT LS 59 09-70* 2016 35 12 (23) Overflow Emergency Response Trailer09-70* 2007 17 22 5 For FY 2022-2023
253
Attachment 22
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
Overflow Emergency Response Trailer09-70* 2007 10,000 15,000 5,000$ TOTAL 10,000 15,000 5,000 For FY 2022-2023
254
DATE: March 28, 2022

TO:

Mayor and Members of the City Council
President and Members of the Estero Municipal Improvement District (EMID) Board of Directors

VIA: Kevin Miller, Interim City/District Manager

FROM: Maria Saguisag-Sid, Human Resources Director

SUBJECT: FY 2022-2023 SELF-INSURANCE FUND BUDGET

RECOMMENDATION
City of Foster City/EMID ("City") staff seeks reaffirmation of the City Council/EMID Board of Directors' ("City Council") policy to maintain a minimum Self-Insurance Fund Reserve Balance of $1 million. In addition, staff seeks City Council direction for staff to prepare the FY 2022-2023 budget with department assessments in the table below.

BACKGROUND/ANALYSIS
Attachment 1 is the analysis of internal service charges and the preliminary proposed budget for FY 2022-2023 for the Self-Insurance Fund. The analysis shows the audited ending fund balance from FY 2020-2021 (June 30, 2021) as $1,293,202. With revenues and expenditures projected through June 30, 2022, the estimated fund balance beginning FY 2022-2023 will be $1,015,302 which is above the $1 million reserve target. While the general liability premium is projected higher than prior years, the City Council’s conservative approach to handling claims helps to keep the expenditures within budget. 255
Expenditures
Expenditures in this fund represent the Pooled Liability Assurance Network Joint Power’s Authority (PLAN JPA) premium and an allowance for expenses that may be incurred below the $100,000 liability self-insured retention (SIR) and property and vehicle damage deductibles.

For FY 2022-2023, the amount budgeted for premiums includes an increase of 47% above the previous year which reflects ongoing volatility in the insurance market that continues to experience considerable losses in natural disasters, cyber-attacks, and fires throughout the United States and in California. This volatility has also resulted in several insurance providers exiting the California market, resulting in fewer providers to provide competitive insurance quotes for the group. PLAN JPA currently uses a third- party claims administrator, Sedgwick, to assist with claims administration.

PLAN JPA’s goal of maintaining the pool’s funding at the 65% confidence level for liability and 70% for property, and the ongoing impact of natural disasters on property insurance premiums are actively being addressed by the PLAN JPA Board.

The actual PLAN JPA liability, property, and cyber premiums will not be finalized until around June 2022, so the figures may be adjusted, if needed, in the final FY 2022-2023 budget prior to adoption. Expenditures within the City’s SIR are estimated to be at or under $130,000, based on current experience.

Revenues/Internal Service Charges
Revenues are derived from internal service charges to the City General Fund, Vehicle Replacement Fund, Water Fund, and Wastewater Fund; interest earnings; and any rebates of the PLAN JPA premiums based on positive experience and PLAN JPA policy. There are no anticipated rebates from PLAN JPA and there are expected additional expenses associated with premium increases, as well as costs associated with PLAN JPA’s administrative overhead and the goal to fund at a higher confidence level.

Based upon projected reserves at the end of FY 2021-2022 which are projected slightly above the $1 million reserve and the projected expenditures 256
for FY 2022-2023, Self-Insurance internal services charges in the following budgets will reflect the assessments as shown below.

Budget Projected
FY2021-
2022
Proposed
FY2022-2023
Increase
(Decrease)
Revenue
General Fund - City
Manager's
Department
$260,969 $536,953 $275,984
Vehicle
Replacement Fund
$75,391 $155,120 $79,729
Water Fund $121,786 $250,578 $128,792
Wastewater Fund $121,786 $250,578 $128,792
Interest $4,400 $5,000 $600
Total $584,332 $1,198,229 $613,897

FISCAL IMPACT
As noted above, the increase to the Self Insurance Fund Budget is currently projected to be $613,897. Staff will continue to monitor progress as PLAN JPA works to finalize the cost for FY 2022-2023 and will report back on any adjustments to the above projections.

CITY COUNCIL VISION, MISSION AND VALUE/PRIORITY AREA
This item supports the City Council’s Vision and Mission by promoting a sustainable economic environment in a very challenging insurance market.

Our participation in PLAN JPA allows the City to limit excessive liability exposures by sharing the risk among other government agencies, allowing the organization to focus on delivering programs and services while protecting the community’s assets and properties.

257
Attachments:
Attachment 1 - FY 2022-2023 Self Insurance Fund Internal Service Charges Analysis and Proposed Budget
Attachment 2 - FY 2022-2023 Self Insurance Fund Budget Narrative 258
ATTACHMENT 1
FY 2022/2023 SELF INSURANCE FUND INTERNAL SERVICE CHARGES Fund Balance 6/30/2021 (Actual) 1,293,202$
From FY 2021/2022 CAFR
Original Projected
Budget 6/30/2022
Revenues FY 2021/2022 584,332 $ 584,332 $ 584,332 $ Department Assessments 579,932 579,932
City GF 260,969 $
Vehicle 75,391 $
Water 121,786 $
Wastewater 121,786 $
Interest Earnings 4,400 $ 4,400 $
Expenditures FY 2021/2022 862,232 $ 862,232 $ (862,232) $ SIR - New Claims 55,000 $ 55,000 $
SIR - Existing Claims 70,000 $ 70,000 $
Liability/Property/Vehicle Premium 707,592 $ 707,592 $ All Risk & Bond (includes Cyber and Storage Tank 28,640$ 28,640 $ Supplies and Services 1,000 $ 1,000 $
Fund Balance 6/30/2022 (Projected) 1,015,302$
Proposed
Budget
Revenues FY 2022/2023 1,198,229$
Department Assessments 1,193,229 $
City GF 45.0% 536,953 $
Vehicle 13.0% 155,120 $
Water 21.0% 250,578 $
Wastewater 21.0% 250,578 $
Interest Earnings 5,000$
Expenditures FY 2022/2023 1,213,529$
SIR - New Claims 60,000 $
SIR - Existing Claims 70,000 $
Liability/Property/Vehicle Premium 1,042,433 $
All Risk & Bond (includes Cyber and Storage Tank) 40,096 $ Supplies and Services 1,000 $
Fund Balance 6/30/2023 (Projected) 1,000,002$
Target Fund Balance (1,000,000) $
Difference 2$
259
Budget Projected FY
2021-2022
Proposed
FY2022-2023
Increase
(Decrease)
Revenue
General Fund - City Manager's Department $260,969 $536,953 $275, 984 Vehicle Replacement Fund $75,391 $155,120 $79,729
Water Fund $121,786 $250,578 $128,792
Wastewater Fund $121,786 $250,578 $128,792
Interest $4,400 $5,000 $600
Total $584,332 $1,198,229 $613,897
Expenditures
SIR - New Claims $55,000 $60,000 $5,000
SIR - Existing Claims $70,000 $70,000 $0
Liability/Property/VehiclePremium* $707,592 $1,042,433 $334,841 All Risk & Bond (includes Cyber and Storage Tank) $28,640 $40,09 6 $11,456 Supplies and Services $1,000 $1,000 $0
Total $862,232 $1,213,529 $351,297
260
Self Insurance Fund
The
Self Insurance Fund was established as a cost savings tool to address the high cost of purchasing commercial liability insurance. The City/District cu rrently has a liability self- insured retention of $100,000, meaning that the City/District pays all expenses associated with a claim up to the first $100,000.

The City of Foster City is a mem ber of a self-insured insurance pool known as Pooled Liability Assurance Network (PLA N) JPA that provides general li ability coverage from $100,000 to $25,000,000 per claim. Any claim over $25,000,000 is the City’s responsibility.

The pool also jointly purchas es all-risk (property) and public officials’ bond insurance coverage for member agencies. PLAN JPA offers additional insur ance, and the City participates in an enhance cyber insurance program.

Expenditures in this fund repres ent the PLAN JPA premium and an allowance for expenses that may be incurred below the $100,000 liability self-insured retention, as well as property and vehicle damage deductibles. PLAN JPA premiums are largely based on the member’s payroll, services provided, and the value of property insured.

Revenues are derived from assessments to the City General Fund, vehicle replacement fund, water fund and wastewater/sewer fund; interest earnings; and any rebates of the PLAN JPA premiums based on positive experience and PLAN policy.

The Self-Insurance Fund is funded to a target reserve level of $1 million.

Attachment 2
261
DATE: March 28, 2022

TO: Mayor and Members of the City Council

VIA: Kevin Miller, Interim City Manager

FROM: Jennifer Phan, Interim Deputy City Manager
Rob Lasky, IT Manager

SUBJECT: INFORMATION TECHNOLOGY INTERNAL SERVICE FUND
BUDGET FOR FY 2022-2023

RECOMMENDATION
It is recommended that the City Council review this report and its attachments and provide policy direction on the proposed Information Technology (IT) internal service expenditures budget, including the scheduled replacement purchases and Information Technology Fund charges in the Fiscal Year 2022-2023 Preliminary Budget.

BACKGROUND/ANALYSIS
Attached are the spreadsheets for the Information Technology Equipment Replacement Fund. The City/EMID (“City”) continues to use the Internal Service Fund Methodology developed in FY 2005-2006 in determining the Information Technology Replacement Fund listing for FY 2022-2023.

On an annual basis, the Information Technology Division reviews with each department their list of assets to determine which items are no longer needed, which equipment should be replaced, or which new assets will be requested.

The replacement lives and values of each asset are also reviewed by the IT Division and adjusted where necessary. Assets that are fully funded are not 262
automatically replaced. If it is determined that it is in good working condition, the asset accrual is frozen and no replacement charges are accrued.

Total IT internal service charges for FY 2022-2023 will be $2,403,528 which is $80,370 (or ~3.24%) lower than internal service charges for FY 2021-2022 of $2,483,898. The main reason for the decrease is lower cost capital projects are planned for FY 2022-2023 than those in FY 2021-2022 (namely the high value Permitting System Replacement/Enhancement for $207,750 was in FY 2021-2022, and it is not in FY 2022-2023).

The following list summarizes the items that had the highest impact in the changes to the IT fund:
IT Staffing: With the retirement of one Senior Systems Analyst, IT is looking to fill that position with an entry level Technology Analyst I. In FY 2022-2023, the IT Division is looking to add a second Technology Analyst I to help spread the workload to allow for training and growth of the newer staff members. The fiscal impact is $91,000.
Overall Benefits Increases: Personnel costs were higher due to COLA, Flex Benefits, and Workman’s Comp increases. The fiscal impact is $59,000.
Managed Security Subscription: IT has been looking into Managed Security Subscriptions, which consist of security software (log monitoring, antivirus, intrusion detection, etc.) along with specialists (staff augmentation) at a network operations center to help monitor and respond to potential security incidents. The fiscal impact is $50,000. Increased Annual Software Maintenance: Maintenance costs for multiple vendors is increasing, including Microsoft, CentralSquare (Financial/Payroll/Utility Billing system), and Sunridge (Police CAD/RMS system) .The fiscal impact is $21,000.
IT Strategic Plan: This project was planned for FY 2021-2022, but instead cannot be delivered prior to July 2022 due to shifting priorities.

It has been kept in the operating budget, with the following description:

With the help of a consultant and the input of all stakeholders, the City will develop an IT Strategic Plan that will help identify IT focus areas for the next 5 years. This document will assist stakeholders to make informed decisions about IT resources. The fiscal impact is $60,000. 263
Miscellaneous assets were deferred by departments, but not enough to offset the increases listed above. See Attachment 6 for added or deleted items.

FISCAL IMPACT

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
The overall IT Division budget is most closely related to the "Innovation and Sustainability" Value/Priority Area. More specifically, funding IT services has a nexus to the initiative to "Prioritize City modernization efforts and explore Foster City applications."

Attachments:
Attachment 1 – Draft FY 2022-2023 Operating Budget – Information Technology Fund
Attachment 2 – Department Internal Services Charges Allocation Summary for FY 2022-2023
Attachment 3 – Information Technology Fund Comparison for FY 2022- 2023
Attachment 4 – Internal Service Fund Variance Analysis Attachment 5 – Schedule of Items to be Replaced for FY 2022-2023 Attachment 6 – Items Added to or Deleted From the Equipment Replacement FY 2022-2023
Attachment 7 – Changes to Estimated Useful Lives for FY 2022-2023 Attachment 8 – Changes to Replacement Values for FY 2022-2023 Attachment 9 – Budget Narrative for FY 2022-2023 - Information Technology Fund
264
Attachment 1
Proposed: Fund 504 - Information Technology Fund
FY 2022-2023 EXPENDITURE BUDGET REQUEST
Account String Account Name Description
FY 21-22 Approved
Budget
FY 22-23 Proposed
Budget
TOTALS $2,483,898 $2,403,528
504-0160-419-41-10 PERMANENT SALARIES $567,228 $643,003 504-0160-419-41-21 PERS RETIREMENT $59,578 $66,206
504-0160-419-41-35 FLEX ALLOWANCE $81,300 $135,996
504-0160-419-41-36 WORKERS COMPENSATION $2,894 $3,477
504-0160-419-41-39 OTHER FRINGE BENEFITS $36,160 $40,440 504-0160-419-41-40 COMPENSATED ABSENCES $17,571 $20,145 504-0160-419-41-41 GASB68 PENSION EXP-PERS $65,000 $51,000 504-0160-419-41-42 GASB75 OPEB EXP-PEMHCA $7,400 $6,000 504-0160-419-41-54 PEMHCA $3,480 $3,648
504-0160-419-41-61 EMPLOYEE BENEFIT-PERS UAL $140,948 $165,898 504-0160-419-42-40 SPECIAL DEPARTMENTAL SUP $50,000 $50,000 504-0160-419-42-41 COPY EXPENSE $750 $750
504-0160-419-42-42 POSTAGE EXPENSE $300 $300
504-0160-419-42-43 GENERAL OFFICE SUPPLIES $400 $400
504-0160-419-42-45 TOOLS & EQUIP(<5000@ITEM) REPLACEMENT MONITORS & PROJECTORS & CAMERAS (AS NEEDED) $9,000 $9,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP $694,000 $736,500 504-0160-419-42-46 MAINT-FACILITY & EQUIP ADOBE SOFTWARE SUBSCRIPTIONS $8,000 $8,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP AGENDA/MINUTES/VIDEO STREAMING ANNUAL FEE $25,000 $25,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP ANTIVIRUS SOFTWARE MAINTENANCE $15,000 $15,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP BACKUP HARDWARE MAINT AND CLOUD REPLICATION $24,000 $26,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP BUSINESS CONTINUITY SERVICES $20,000 $20,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP CITIZEN REQUEST MAINTENANCE APP (SeeClickFix) $7,000 $7,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP CLOSED CAPTIONING SERVICES FOR MEETING VIDEOS $15,000 $15,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP CLOUD BASED EMAIL ARCHIVE/SPAM FILTER/BACKUP $15,000 $20,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP COMCAST DIGITAL BOXES - TRANSFER FROM CITY MANAGER $0 $3,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP COST ALLOCATION SOFTWARE MAINTENANCE $5,000 $5,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP COUNTY TRAINING CONSORTIUM LMS SUBSCRIPTION $4,000 $0 504-0160-419-42-46 MAINT-FACILITY & EQUIP DOCUMENT MANAGEMENT SOFTWARE MAINTENANCE $20,000 $20,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP E-SIGNATURE SOFTWARE SUBSCRIPTIONS $13,000 $13,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP FIREWALL MAINTENANCE $15,000 $15,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP GIS AERIAL PHOTOGRAPHY SUBSCRIPTION $10,000 $10,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP GIS SOFTWARE MAINTENANCE $40,000 $40,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP HTE SOFTWARE ANNUAL MAINTENANCE $67,000 $69,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP ISeries SOFTWARE & HARDWARE MAINTENANCE $7,000 $9,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP MANAGED SECURITY SERVICES $0 $50,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP MICROSOFT SERVER, OFFICE AND CAL LICENSES - EA $75,000 $90,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP OPENGOV BUDGETING SOFTWARE MAINTENANCE $50,000 $51,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP OTHER SOFTWARE MAINTENANCE (<$3000) $28,000 $28,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP PENSION SOFTWARE MAINTENANCE $13,000 $13,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP PERMIT GUIDE SOFTWARE SUBSCRIPTION - NOW CHARGED DIRECTLY TO PERMIT TECHNOLOGY FUND $15,000 $0 504-0160-419-42-46 MAINT-FACILITY & EQUIP POLICE DISPATCH BATTERY BACKUP MAINTENANCE $2,500 $3,500 504-0160-419-42-46 MAINT-FACILITY & EQUIP POLICE SOFTWARE MAINTENANCE (CAD/RMS, OTHERS) $67,000 $70,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP PRINTER&SCANNER MAINT/TONER/REPAIR $7,000 $7,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP PUBLIC ENGAGEMENT SOFTWARE $20,000 $20,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP RECREATION CLASS REGISTRATION SOFTWARE MAINT $8,000 $8,000 504-0160-419-42-46 MAINT-FACILITY & EQUIP REMOTE MONITORING/MANAGEMENT (RMM) SOFTWARE SUBSCRIPTION $6,000 $7,500 504-0160-419-42-46 MAINT-FACILITY & EQUIP REMOTE USER SECURITY SOFTWARE (ZERO TRUST) SUBSCRIPTION $25,000 $0 504-0160-419-42-46 MAINT-FACILITY & EQUIP SOCIAL MEDIA SENTIMENT ANALYSIS SOFTWARE SUBSCRIPTION 3-YEAR (ZENCITY) $25,000 $25,000

Page 1 of 2 ends

Foster City City CouncilMarch 28, 2022

Foster City City Council
March 28, 2022