Foster City City Council
June 20, 2022

RESPONSE TO SECTION 2: SYSTEM REQUIREMENTS
Cartegraph’s operations management software (OMS) enables high-performance operations. It is an operations management solution that is easy-to-use while still delivering deep work order and inspection capabilities, a comprehensive mobile solution, inventory management from multiple locations, fleet management with integrated Vehicle Replacement Rating, and the industry’s best reporting and executive dashboards. This means that all relevant information is available across the enterprise and delivered to stakeholders in a way appropriate to their needs. You'll capture all the operations data you need in one system and more:
• Build an inventory of all of your assets
• Create tasks to maintain your assets
• Track labor, equipment, materials, and overall costs
• Inspect your assets proactively, giving you visibility on how your infrastructure is performing
• Capture data in real-time
• Integrate seamlessly with GIS, finance, and other systems you already own • Use the data to answer to council or put together your budget proposal • Set up preventative maintenance schedules and use automations to save time in your day • Monitor performance with easy-to-use dashboard gadgets • Plan for the future with proactive work plans and budgeting tools

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We acknowledge that the City is considering deploying Facility Maintenance, Parks Maintenance, and Water System in the first year. Our out-of-the-box request, work, asset, and resource management capabilities come standard for each of the domains listed in the City’s initial deployment. The Cartegraph OMS solution can manage the following assets and domains when the City is ready:

Request
Management
Work
Management
Asset
Management
Resource
Management

Flood Protection
Domain
Parks & Recreation
Domain
Sanitary Sewer
Domain
Signals
Domain

Stormwater
Domain
Transportation
Domain
Walkability
Domain
Wastewater
Treatment Plant
Domain

Water Distribution
Domain
Water Treatment
Plant Domain
Budgeting &
Planning
Safety & Security
More information about how OMS fulfills the City’s specific capabilities is provided on the following pages.

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Facilities Domain
Cartegraph’s Facility Domain expertise allows users to:
• Proactively maintain their buildings with preventative maintenance plans, dashboards of facility and asset performance, and proactive upgrade and repair planning • Reduce operations expenses with efficient workflows, communications, and asset views • Leverage container/component relationships to view rolled-up costs and condition data all in one place

Cartegraph container summary view of a facility with all tasks and related costs.

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Parks & Recreation Domain
Cartegraph’s Parks & Recreation Domain expertise allows users to:
• Track their entire park infrastructure to extend the lifespan of all your assets with things like mobile playground inspections to save time and know the real condition of assets • Manage their workforce to know the time it takes to keep their areas beautiful and safe • Justify budget needs with all cost and repair history with real-time updates and reporting

Cartegraph Park Container/Component View detailing all assets in a park. A high-level asset detail view of a playground is shown on the map with the overall condition index (OCI) data below it.

The Parks & Recreation Domain includes the following assets: Athletic Spaces, Benches, Fences, Landscape Areas, Park Amenities, Park Structures, Parks, Playground Equipment, Playgrounds, and Trees.

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Stormwater Domain
Cartegraph’s Stormwater Domain expertise allows users to:
• Maintain NPDES compliance with inspection and maintenance history all in the cloud • Easily and quickly generate compliance reports and view infrastructure costs • Enable webhooks to cleanout culverts and other assets when heavy rain is expected in your area or set up automated inspection schedules to be ready no matter the forecast

Stormwater Assets on a topographic map showing the overall condition index (OCI) and a high-level detailed view of a storm pipe asset.

The Stormwater Domain includes the following assets: Storm Basin, Storm Channel, Storm Culvert, Storm Facility, Storm Inlet, Storm Manhole, Storm Outlet, Storm Pipe, and Storm Pump. 229

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GENERAL

1. System must have a role-based security system, allowing some users more access to functions than others (for instance, some users should be able to edit/delete work orders, while others should have read-only access to work orders).

Cartegraph OMS allows for the securing of creating, update and delete operations at the lowest levels of the application. During implementation, Cartegraph will provide a template for your staff to populate roles and users to be utilized for OMS. Post-implementation, the City can create any number of roles with custom titles and users, each with their own set of permissions.

2. Security should allow granularity, down to the field level.

Cartegraph supports role-based security; however, we do not support field-based security.

Cartegraph allows the City to create messages or “pop-ups” when a value in a field is incorrect or does not fall into parameters or values that the City requires for specific fields.

3. Single sign-on is desired (but not required). AzureAD/SAML integration is preferred.

Cartegraph supports a single sign-on experience through ArcGIS Enterprise Login capabilities.

4. System should have context-sensitive user help, as well as a searchable full-system help function.

Cartegraph provides unlimited access to Cartegraph Campus, our online Campus Resource Library. Cartegraph Campus has training videos, white papers, how-to guides, and more, all of which are available 24 hours a day, 7 days a week, 365 days a year. All of which can be seen online or downloaded for future use if desired. Text-based documentation is searchable.

5. System should provide an audit trail with date, time, user stamp and historical values.

Every edit in the system is time-stamped with the user who made the edit.

6. Users should be able to attach documents and photos (photos taken directly from iPads in the field) to any record in the system.

This is standard functionality of the mobile app. The user can utilize the camera on the device to attach photos/videos taken on the device, or stored in the device’s photo library. Every record in Cartegraph has the ability to have multiple attachments associated to it. Various formats can be used such as .jpg, .tif, .pdf, .dwg, and videos.

7. Describe degree of integration with ESRI products. (e.g. Can we use a City basemap inside the system, and can we view asset history from ESRI).

Cartegraph OMS is a 100% GIS-centric solution. This means that Cartegraph and Esri work seamlessly together, combining your organization’s existing GIS web maps and asset inventories 230

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with rich operations and asset management functionality. If you have data in one system, but not the other, the integration will fill in your missing pieces.

Esri have developed a set of partner specialties to help their users find the best software and service providers to fit their needs. Cartegraph has five GIS-centric Specialties and designations that are highly sought-after in our customer base:

Cartegraph’s Esri
Specialty…
…and Its Benefit to Foster City

Cartegraph works as seamlessly with ArcGIS Online as it does with ArcGIS Enterprise, shown by our experience and track record with existing users.

With 25+ years of experience working with state and local government customers on asset management, work management, and overall infrastructure operations, we have the expertise to develop, configure, and implement ArcGIS-friendly solutions. Cartegraph combines domain experience and intimate knowledge of the ArcGIS system to set up the City for success.

Cartegraph’s solutions are built to manage every infrastructure asset:
indoors, outdoors, above, and below ground. Our suite of tools and expertise will help the City get more effective, efficient, and productive results from their facility operations efforts.

We keep our solution up-to-date on all new releases within the ArcGIS system, so the City will not need to wait on Cartegraph before upgrading their enterprise ArcGIS to the latest offerings. We also evaluate new capabilities with each new release, and where appropriate, make changes in Cartegraph to leverage those new capabilities.

The ArcGIS Marketplace features products and services that embed and extend the capabilities of ArcGIS in a million different ways.

Cartegraph offers a range of infrastructure management solutions that empower the City to do more with their maps and GIS data.

8. System should allow printing and/or exporting (for example, PDF format) a map with a legend, bar scale, and notes displaying work order or asset location.

Cartegraph allows a variety of printing options. Reports can be printed out to paper and exported to files such as Word, Excel, PowerPoint, and PDF. Maps can be printed out with legends, scale bars, and the assets/work that are currently be shown on the screen. 231

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9. Describe how your system can interface with “Call Before You Dig” 811 service/USA utility markout requests.

From GIS, 311, CRM, and billing solutions to fueling systems, SCADA software, and IoT devices, Cartegraph understands that our clients need a range of tools in their toolboxes. That's why we embrace an open systems model that gives clients the freedom to use data however, whenever, and in whatever platform they choose. Cartegraph has several key features that support integration between systems; collectively, we refer to this as the Cartegraph Integration Toolkit. • API: Cartegraph has a full REST API for the product that can support integration. This same API is used within Cartegraph to facilitate integration between our own products such as Cartegraph One (our mobile product) to the back office Cartegraph OMS. • Webhooks: Webhooks allows the platform to listen for changes within the software to initiate integration. Connecting a Cartegraph webhook to tools such as Zapier, Automate.io or IFTTT, Cartegraph can listen for changes and automatically trigger an action. This could be as simple as sending an SMS message when a Work Order is rescheduled to monitoring the weather and adjustment work assignments when it is going to rain. • Import and Export Automation : We recognize that not all integrations require an API-to- API effort or need to be real-time. It is common for our customers to need to load data or do bulk updates to data, and for this we have built into the OMS platform an import/export utility. This allows our customers to easily extract data from OMS and/or load data into OMS. In some cases, customers need on-demand or infrequent integration between systems, an example would be the loading of employee labor rates. Leveraging import/export is a great solution for these use cases.

10. System should allow for tying asset/work costs to financial codes (budget account numbers, project codes, etc.)
Financial codes can be created as configured fields in Cartegraph and can be associated to projects, budget numbers, and more. When these codes are created, users can query and report on work that has been performed that are tied to these codes.

ASSETS
Asset management functionality provides the capability to track any type of asset including signs, signals, pavement segments, hydrants, sewer mains, storm pipes, fleet, facilities, and many more. Asset applications include asset-specific fields and functionality. The Signs application, for example, includes a MUTCD library with codes, descriptions, background colors, legend colors, and default images. All asset applications also integrate with Cartegraph’s work management functionality to associate work activities, costs, and resources. Key features include:
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• Uniquely identify and quickly create any asset
• View asset connectivity
• View map layers of assets and drill down to see additional detail • Document inspection results and calculate asset conditions • Estimate the remaining life of assets
• View graphs of the actual and predicted performance of individual assets • Review cost to maintain assets based on completed work • Add and view attachments
• Use container/component relationship to manage assets within assets. Examples include parks with equipment, athletic fields, facilities, monuments, and landscape features • Set up preventative maintenance schedules on assets to trigger work automatically based on condition, time, and usage

Asset Management: View of an administrative building overview with facility domain assets.

11. System should allow staff to maintain an accurate inventory for the purpose of maintenance, replacement, and repair.

This is a standard capability within OMS.

12. System should monitor asset cost history for the life of the asset including acquisition, maintenance, repairs, retirement, and disposition.

Each asset in Cartegraph maintains a Task Log that will list every activity ever recorded against the asset. Details about each of these activities include when the work was done, what work was performed and how much this work costs in terms of labor, equipment, and materials. These activities can also be used to help calculate current condition of the asset.

13. System should track asset activities and history for unlimited years (e.g. repairs, replacement, maintenance, upgrades, retirement, abandon-in-place, etc.).

The entire work history of each asset is preserved in the system. 233

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14. System should track condition and useful life estimates by asset type (e.g. assets such as fire hydrants, pump stations, street lights, roads, etc.)
Users can view asset details to see an automated total cost to maintain an asset.

15. System should track asset age and flag the assets for replacement based on a customizable schedule per asset type.

Tracking the age (and thus, condition) of an asset is an integral part of the system.

16. System should be able to trigger suggested purchases based on customizable minimum quantities-on-hand and customizable re-order lead times.

System-generated notifications remind staff when a material hits its user-defined reorder point.

WORK ORDERS
Cartegraph can accept requests from multiple sources and can intake both internal and external requests. There are several ways to enter a request. Requesters can submit requests online or via a smartphone with the use of third-party Citizen Request Management Platforms, which can be seamlessly integrated with Cartegraph OMS.

Staff can create new requests to address incoming phone calls under the Request section of Cartegraph’s OMS. When documenting a new call, staff can review caller history as well as the location and details of similar requests. Instead of creating duplicate requests, staff can add new requesters to existing issues in one click. Requests can be completed (or routed) through a work order to completion.

Cartegraph Request Management view of a pothole request on a standard light gray canvas map 234

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17. System should allow for an automated workflow in order to route work orders based on defined City business rules.

Requests can be completed (or routed) through a work order to completion. All incoming requests are routed to the request section of Cartegraph OMS. Staff can review the requests, assign work to them, and the request can be tracked through completion. Notifications can be set to automatically notify requesters when a request has been received and completed.

18. System should track duration of work order requests, when maintenance is performed, the results, and staff members involved.

All labor, equipment, materials and other costs are easily tracked against every work activity.

19. System should associate, maintain, monitor and record all costs (internal or vendor provided) for all work orders.

Costs associated with a work order are visible on the work order level and associated with the given asset, with the work order linked to the asset and adding to the asset’s total cost to date.

20. System should allow work orders to be created and closed without assets tied to them.

Work activities can be created as a “non-asset” task, so the City can create work that does not have to be associated to a specific asset. For example, the City could create a work activity of “Staff Meeting” that tracks the time spent at the meeting but not associated to a particular asset.

21. System should be able to manage both internal and external (contractor) work orders.

This is a standard capability of OMS.

22. Users should be able to assign time and resources at creation and during tasks on chargeable work orders.

This is a standard capability of OMS.

23. Ability to link work orders to projects. Briefly discuss if projects are handled in the system or typically 3rd party and how they connect.

Cartegraph breaks work down into two main components – a work task (an activity that is performed) and a work order (a container of multiple tasks, or project). Multiple tasks can make up one work order, or project, and the completion percentage of the work order will change as associated tasks are completed.

24. System should allow both ad-hoc (break-fix) work orders as well as scheduled preventative maintenance and/or asset inspection work orders.

Work can be created at any time against any asset, or even created for non-asset tasks. Work can be created “on the fly” or created via a preventative maintenance type of activity – based on time or condition, so that an activity automatically is created when a threshold has been reached. 235

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25. Workflows should be customizable by the system admins, and have task reassigned as needed by users.

Workflows can be configured and edited as needed by the City. City staff can create more complex workflow relationships through the use of Automation Manager.

REPORTING
Cartegraph reporting options include dashboards, standard reports, and the capability to create ad-hoc reports. The dashboard includes charts and graphs to track key financial and operational performance metrics including a cost breakdown, asset condition, and task completion. Standard reports provide an additional way to collect and review diverse sets of data. Examples include task performance measures, asset performance charts, and material inventory details.

The system includes the capability to filter, sort, query, and report on any field. Authorized users can create and publish an unlimited number of ad hoc reports. Each user also can manipulate data on-screen through filters and sorts. These data views can then be exported with a single click to various compatible file formats. The subsequent list shows all of the standard reports available in Cartegraph OMS, all of which can be customized by the City out of the box. • Asset Summary Report
• Average Activity Cost Report
• Average Completion Time Report
• Average Cost for Issues Report
• Cost and OCI Per Year Report
• Equipment Billing by Department
Report
• Equipment Summary Report
• Labor Crew Detail Report
• Labor Summary Report
• Material at Location Report
• Material Below Reorder Report
• Material Bulk Transfer Report
• Material Inventory Report
• Material Order Details Report
• Material Quantity on Hand per
Location Report
• Material Summary Report
• Pavement Area Current PCI Details
Report
• Pavement Area Estimated OCI by
Street Report
• Pavement Area Estimated OCI
Pavement Classification Report
• Pavement Current PCI Details Report
• Pavement Estimated OCI by Street
Report
• Pavement Estimated OCI Pavement
Classification Report
• Report Description
• Request Detail Report
• Request Detail With Map Report
• Scenario Summary Report
• Stagnant Material Report
• Task Detail Report
• Task Performance Measures Report
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• Task Summary With Map Report
• Tasks Summary Report
• Upcoming Tasks Report
• Vehicle Maintenance Report
• Vehicle Replacement Rating Report
• Vendor Summary Report
• Work Order Detail Report
• Work Order Detail with Map Report

26. System should generate detailed reports regarding activities/costs that can be used for presentations to City Council, other departments, etc. Reports should be easily customizable.

Cartegraph comes with nearly 100 standard reports. All reports can be exported into .pdf format, in addition to other formats such as Word, Excel, and PowerPoint. The Analytics Dashboard allows users to create different gadget types (pie charts, column charts, KPIs, etc.). These gadgets can be shared with specific users or roles so that users who may have limited technical knowledge or abilities may still see the data they need on the dashboard.

27. Reports should be available to track the value/costs of assets subtotaled by location, department/division, project, assigned-to user, warehouse, etc.

Reports (and queries) allow for drill-down capabilities to get to the information the City is interested in reporting on. Whatever fields are in Cartegraph, users can create reports, queries or filters to find this information.

28. Describe your reporting system. Is reporting embedded in the system, or is it done via 3rd party tools (SSRS, Power BI, Tableau, Crystal, etc.)
Cartegraph has an embedded report writer, Combit, which allows organizations to create their own, configured reports. Combit’s List & Label report generator contains all of the reporting components and options needed for embedded reporting.

29. Reports should allow drill-through capability all the way down to source transactions.

Reports (and queries) allow for drill-down capabilities to get to the information the City is interested in reporting on. Whatever fields are in Cartegraph, users can create reports, queries or filters to find this information.

30. Reports should allow metric-specific reporting (e.g. work order aging, escalations, past due approvals, etc.).

Reports can be created in a basic or advanced format and can be tailored to the specific needs of the City. As all reports are configurable in nature, the metrics listed above are all possible. 237

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MOBILE CAPABILITIES
Cartegraph provides options for mobile access and is platform-agnostic, functional with both iOS and Android devices. Field staff can experience the full app interface with a smartphone or tablet.

When using a device with GPS capabilities, users can identify their current location on the map and leverage that information to accomplish
tasks such as creating assets or identifying
nearby work. All mobile devices can be used in
a real-time, always-connected state with an
Internet connection. An offline option is also
available in the event service is difficult to
maintain (all work performed will be synced
once a connection is reestablished).

31. System should be desktop and mobile-
friendly. Mobile devices (smartphones, tablets)
and laptops are expected to be used by staff in
the field. Please specify if mobile experience is
via responsive website or native app.

Cartegraph can be accessed in the field with
Cartegraph One, a native mobile app available
from iTunes and Google Play. Cartegraph One
works on both phones and tablets. In addition, devices such as a Microsoft Surface can be used.

32. System should allow mobile users to record data in the field without an active internet connection and upload data recorded in the field when internet connectivity is restored.

An offline option is available. A user can view, complete, and create new tasks and also enter labor, equipment, materials, and other resources while completing asset inspections. All work data is recorded and will be updated and saved in Cartegraph OMS once users are back online. 238

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RESPONSE TO SECTION 3: RFP SUBMITTAL REQUIREMENTS

3.1. REQUIREMENT A : GENERAL

3.1.1. Proposed Timeline for Implementation
The vendor shall submit a proposed time-line schedule for implementation.

An average Cartegraph implementation will span 9-12 months based on one phase of the project.

Multiple-phased and more complex projects may take longer than the average implementation timeline. Refinement of this schedule can be expected during contract negotiations, as detail is added as part of the overall implementation planning process. Please see the below for our proposed implementation timeline to the City. Our implementation process follows the timeline, and our proposed scope of work is provided as Appendix 3.

DEFINE & PLAN

AUG OCT

BUILD & TEST

FEB - APR

DESIGN

NOV - JAN

DELIVERY & SUPPORT

MAY JUL
CARTEGRAPH’S IMPLEMENTATION PROCESS
The technical solution is only as powerful as the teams that design, implement, and support it.

From consulting to implementation, training to ongoing support: Cartegraph does it all. The City will not need to work with a third-party consultant to get Cartegraph up and running, and to keep it running smoothly. Our services team walks you through every step of the process—empowering you to capture data, analyze it, and prepare for the future.

For the City, we propose a project implementation process that is based on our work with similar entities while also being specific to the City’s needs. We begin by scheduling a project kick-off call which would include the City’s stakeholders along with Cartegraph’s Business Development Manager, Project Manager, and an Implementation Specialist. The call allows introductions, discussion of project goals, review of the scope of work, review of key project tasks, discussion of project timelines, scheduling of weekly status calls, and a discussion of the next steps. 239

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DEFINE AND PLAN
Following the kick-off call with your Cartegraph team, the first major milestone for our engagement will be a detailed review and definition of your goals and objectives. Cartegraph experts facilitate a discovery discussion and articulate SMART (Specific, Measurable, Attainable, Related, Time-based) goals that translate your objectives into tangible deliverables. Our scope of work will facilitate the delivery. However, we will continue our engagement until these deliverables are met. Following goal definition(s), your Cartegraph team will engage with the City’s project team and introduce them to your solution. These introductory sessions are a key opportunity for Cartegraph experts to share best practice recommendations on system design and use. The web-based sessions prepare your team for implementation tasks such as gathering and normalizing source data, collecting report requirements, and preliminary internal workflow discussions.

DESIGN
In this phase, Cartegraph’s experts will conduct a detailed requirement gathering workshop. The workshop’s format and activities can include interviews, workflow diagrams, and/or rapid prototyping to support the discovery process. The exercises provide an excellent venue for Cartegraph’s experts to learn workflow and business requirement details, so we can support your needs through configurations and training. In instances where data conversions or integrations are required for an effective go-live, these items are reviewed and incorporated into the resulting plan. Cartegraph’s discovery is documented and provided as a follow-up report to share findings, recommendations, and establish any adjustments to the overall implementation plan.

BUILD AND TEST
Following the requirement gathering workshops, Cartegraph experts work on configuring roles, layouts, assets, attribute details, reports, and data loads into your sandbox environment. The result is a staged, sandbox environment that (1) is unique to your requirements with your data attributes, and (2) contains data that is ready for training and testing. Cartegraph experts provide detailed technical and scenario-based training to your core project team. Through our standard train-the-trainer approach, we support you in increasing the capability and ownership of your solution. This training serves as one of many knowledge transfers. Your staff can not only become “Cartegraph champions”, but also are equipped to expand the solutions’ capabilities without additional Cartegraph assistance. Cartegraph experts are always available to help, however, if further assistance is needed. Following your Cartegraph-led training events, it’s time for your team to begin testing the solution. Cartegraph facilitates weekly status meetings and supporting web-based engagements for refresher training, answer additional questions, perform configuration adjustments, and provide data-driven trends and feedback on system use and 240

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adoption. Typically, the testing lasts three to four weeks. Upon agreement that the solution meets your needs, Cartegraph’s project team coordinates a Go-Live event and test-to-production configurations are scheduled. Cartegraph can provide end-user training and detailed use case or test scenarios if requested. Additional scope discussions and charges apply.

DELIVERY AND SUPPORT
The Cartegraph team will work with your project team to coordinate production steps including a production data conversion, GIS integration deployment, environment configurations, and any other agreed-upon setup and configuration. The production deployment phase also includes Go- Live support events such as refresher training, last-minute configurations, and other ad hoc support that provides added confidence and reassurance for your team. Following the go-live event, your team will be in a production state. The Cartegraph project team is available to provide remote support and guidance as needed. This team provides on-call remote support in addition to several scheduled work sessions that serve as Q&A and refreshers. This phase lasts for approximately 30 to 60 days as requested by your staff. Following the go-live events and on-call support, Cartegraph’s team will conduct a Project Retrospective and final Milestone review for the first stage of your Cartegraph journey. During these meetings, Cartegraph will review each goal, its completion, and how the provided solutions fulfill them. This review also includes a project retrospective where we can evaluate what we did well and what we need to improve for future engagements. Cartegraph will also share feedback on areas your staff could focus on to maintain continued success in the future.

The vendor will need to identify staff from their company who will be working on their team and confirm their availability for the duration of the project.

The implementation team, led by one of our Sigma Six project leaders, consists of subject matter experts as well as technical experts. This team ensures processes are used to maximize overall program efficiency and projects are followed according to Project Management Institute (PMI) standards. The Cartegraph team will include the following key players:
• Project Manager. Entrusted with the day-to-day coordination for the project implementation. The senior project manager is not only directly involved with project tasks, but this individual ensures the completion of all detailed project steps. The project manager coordinates the efforts of the other project team members. • Implementation Specialist . Responsible for the deployment of the Cartegraph software through our hosted solution.
• Implementation Support Specialist . Responsible for the system configuration and application knowledge transfer to the designated employees at your organization. This 241

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individual is a specialist with comprehensive knowledge of both the Cartegraph software applications, and the public works and asset and work management industry. • Automation Engineer . Configures integrations, delivers data conversions, and supports the Implementation Specialist in architecting the solution.

Post-implementation, Cartegraph will continue to support you with our Support and Technical staff, which includes a Customer Success Manager (CSM) to ensure satisfaction as you continue your journey. The CSM helps the City meet your existing goals and define new ones such as:
• How much time are we spending on analyzing reports?
• How quickly can we respond to urgent issues?
• What is our engagement level with residents?
• Where else can we effectively manage costs?
• Are there areas we can reduce resources while improving quality? The CSM can help create specific metrics, KPI reports, and Dashboards to continually monitor and answer all of these questions with ease.

Cartegraph provides Technical Support through our Iowa-based team, which troubleshoots and provides resolution for Cartegraph software-related issues. Technical Support is available via phone, chat, and e-mail. Support includes three levels of technical experts as well as a channel to Cartegraph’s software engineering team for an in-depth assessment of any technical issues.

In addition to this live support, Cartegraph provides unlimited access to our online Campus Resource Library, Cartegraph Campus. Cartegraph Campus has training videos, white papers, how-to guides, and more 24 hours a day, 7 days a week, 365 days a year, all of which can be seen online or downloaded for future use if desired.

3.1.2. Copy of Proposed Maintenance Contract (Including Support Options) Please see Appendix 5.

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3.2. REQUIREMENT B: PRICING SHEET

3.2.1. Upfront Software Licensing/Subscription Cost
Please see our Term 1 Subscription table on Page 20.

3.2.2. Ongoing Annual Maintenance/Subscription Cost
Please see our Term 1 Subscription table on Page 20.

3.2.3. All Project Service Costs (See Section 4)
Data Migration: Vendor shall provide estimated costs for migrating historical work management data that has been collected by City staff via ColdFusion and Mapguide homebrewed apps. All data is stored in MS SQL, and City staff is familiar with the data structure. Assume there is historical data available for all of the apps listed in 1.2.1.

Data conversion costs is provided in our Term 1 Services table on page 20. Data conversion services from ColdFusion and Mapguide Applications assumes asset data and asset work history data only; it does not include labor, parts and materials data.

Integration: Vendor shall provide costs for Integration with any of the solutions that the City is utilizing (listed in Section 1.2). Specific examples include: SeeClickFix, CentralSquare Naviline, ESRI ArcGIS, Sensus Analytics, WonderWare SCADA.

Please see rows 7 through 9 in our Subscription tables on pages 20 and 21 for annual support of integrations. Implementation costs for integrations are included in row 2 of the Term 1 Services table on page 20.

Training: Vendor shall provide pricing for an administrator training session for all designated system admins. Vendor shall propose suggested length of administrator training sessions for each purchased module.

Administrator training pricing is provided within our Implementation Services line item in Term 1 Services table on page 20. Our proposed length of training sessions is provided in Appendix 4.

Training: Vendor shall provide pricing for in-person and/or virtual training for end users of the proposed system. Please include: the length (in hours) of the training sessions for each purchased module, the suggested maximum number of participants for each class, and whether users will be expected to have a PC available to be hands-on during training.

Pricing for an in-person and/or virtual training for end users within our Implementation Services line item in Term 1 Services table on page 20. Our proposed length of training sessions is provided in Appendix 4.
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Training plans are customized for each clients; typically, we find that a range of 5 to 15 participants is the ideal size for classes. Users are expected to have a PC available. For onsite training, the City would need to provide the following:
• Meeting space with enough seating for attendees
• Seating arrangements (e.g., tables and chairs) to accommodate attendees • Projection monitors and screen connectivity
• Whiteboards and markers
• Internet connection

Maintenance and Support: Vendor shall submit a three year maintenance pricing structure so the City can prepare the necessary budget. Vendor shall detail what the maintenance/support contract covers – vendor responsibility and city responsibility.

TERM 1 : 7/21/2022 - 7/20/2023 (SERVICES )
No. Product Quantity Price
1 Expense Reimbursement 1.00 $8,400.00
2 Implementation Services 1.00 $70,700.00
3 Data Conversion Services 1.00 $16,000.00
Services Total $95,100.00
TERM 1 : 7/21/2022 - 7/20/2023 (SUBSCRIPTION)
No. Product Quantity Price
1 OMS Plus 1 $12,732.44
2 Facilities Domain 1 $4,129.44
3 Parks & Recreation Domain 1 $1,720.60
4 Wastewater Treatment Plant Domain 1 $4,129.44
5 Water Distribution Domain 1 $4,129.44
6 OMS User 50 $16,000.00
7 Systems Integration Support
Central Square Naviline
1 $2,000.00
8 Systems Integration Support
Sensus Analytics
1 $2,000.00
9 Systems Integration Support
Wonderware Scale
1 $2,000.00
Subscription Total $48,841.36
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TERM 2: 7/21/2023 - 7/20/202 4 (SUBSCRIPTION)
No. Product Quantity Price
1 OMS Plus 1 $13,114.41
2 Facilities Domain 1 $4,253.32
3 Parks & Recreation Domain 1 $1,772.22
4 Wastewater Treatment Plant Domain 1 $4,253.32
5 Water Distribution Domain 1 $4,253.32
6 OMS User 50 $16,480.00
7 Systems Integration Support
Central Square Naviline
1 $2,060.00
8 Systems Integration Support
Sensus Analytics
1 $2,060.00
9 Systems Integration Support
Wonderware Scale
1 $2,060.00
Subscription Total $50,306.59
TERM 3: 7/21/2024 - 7/20/202 5 (SUBSCRIPTION)
No. Product Quantity Price
1 OMS Plus 1 $13,507.84
2 Facilities Domain 1 $4,380.92
3 Parks & Recreation Domain 1 $1,825.39
4 Wastewater Treatment Plant Domain 1 $4,380.92
5 Water Distribution Domain 1 $4,380.92
6 OMS User 50 $16,974.40
7 Systems Integration Support
Central Square Naviline
1 $2,121.80
8 Systems Integration Support
Sensus Analytics
1 $2,121.80
9 Systems Integration Support
Wonderware Scale
1 $2,121.80
Subscription Total $51,815.79

SUMMARY BY TERM - INCLUDES SERVICES & SUBSCRIPTIONS
• Total Term 1: $143,941.36
• Total Term 2: $50,306.59
• Total Term 3: $51,815.79
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NOTES
• All pricing presented in this document is valid through the date of expiration. Any pricing concessions made are only applicable to this transaction and should not be assumed for future purchases.
• Purchasing the products presented in this document through any alternative procurement method other than that identified will require a revised price proposal which may include an associated price adjustment.
• Any applicable taxes are not included.
• Pricing does not include any applicable Esri ArcGIS licenses. • Customer Purchase Order or Contract must reference the Cartegraph Purchase Agreement Number identified on the title page of this document for pricing to be valid. • All pricing is in U.S. Dollars ($USD).
• Pricing is valid through 10/21/2022.

EXCLUSIONS
The following service items are not included in the scope of this project:
• Data conversion services from other software system(s) or sources (including Cartegraph Navigator databases) are not included in the scope of this project unless specifically listed. • Any service items discussed during demonstrations, conference calls, or other events are not included in the scope of this project unless specifically listed above. • Implementation of any custom modification or integration developed by Cartegraph, your internal staff, or any third-party is not included in the scope of this project unless specifically listed above.

3.2.4. Additional Modules/Components Price(s) (Optional) N/A
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APPENDIX 1: ABOUT CARTEGRAPH
Cartegraph builds safer, more resilient, and more sustainable communities through better stewardship of our buildings and infrastructure. We recognize that everything from the competitiveness of our economy to the safety of our families depends on the health of our infrastructure. When our customers are better stewards of that infrastructure, we get safer and more useful roads, bridges, buildings, playgrounds, and water supplies. This strengthens our local communities, and, in turn, makes our country stronger and more sustainable, solidifying a better future for all of us. We partner with our customers to build high-performance government by focusing on five key tenets:

1. Effective teams

2. Efficient processes

3. Measurable, actionable results

4. Clarity and accountability

5. Community engagement
Cartegraph delivers powerful, intuitive software solutions to operate and maintain every infrastructure asset—indoors, outdoors, above, and below ground.

COMPANY INFORMATION
Company Name Cartegraph Systems, LLC. Established October 31, 1994 Address 3600 Digital Dr. Dubuque, IA,
52003
Years in
Business
28 Telephone 800.688.2656 Employees 120
Fax 563.556.8149 Federal
ID#
42-1419553
Website URL www.cartegraph.com Ownership Pamlico Capital

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CUSTOMER MAP

HUNDREDS OF GOVERNMENTS USE CARTEGRAPH TO IMPROVE THE LIVES OF MORE THAN 35 MILLION CITIZENS.

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APPENDIX 2: REFERENCES
Information on three select projects is detailed below.

CITY OF WALNUT CREEK, CA
Contact person Gina Eicher
Title Administrative Analyst II
E-mail address [email protected]
Phone number (408) 483-8249

CITY OF SAN PABLO, CA
Contact person Sarah Kolarik
Title GIS Administrator
E-mail address [email protected]
Phone number 510-215-3068

TOWN OF LOS GATOS, CA
Contact person Kinjal Buch
Title Senior Engineering Technician
E-mail address [email protected]
Phone number (408) 399-5756

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APPENDIX 3: PROPOSED SCOPE OF WORK
OMS implementation includes the following professional services:

Setup
• Cartegraph will setup a hosted, test and production OMS environment. • Cartegraph will provide an overview, up to two (2) hours, of Cartegraph and ArcGIS Online user-based logins and user/role functionality.
• Cartegraph will provide a template file to be utilized by your staff to populate Roles and Users to be utilized for OMS.
• Cartegraph will utilize the template to create users and roles in OMS. (Note: Subsequent User and/or Role changes will be your administrator's responsibility.) • Cartegraph will provide documentation and guidance, up to four (4) hours, for your technical GIS staff to configure Esri Basemap Services for OMS integration. Guidance will be geared towards OMS/Esri integration functionality and requirements. • Cartegraph will setup the OMS Platform, including the Request, Work, Resource, and Asset Management areas of the software. Asset Management solutions will be setup for all solutions referenced in the Assets section of the scope unless otherwise noted.

Consulting
Cartegraph will provide a three-day (3-day) onsite requirement gathering workshop to increase our understanding of your business and functional goals. Through workshops and interviews, Cartegraph will identify best fit scenarios for OMS and provide a brief including any challenges as well as recommendations for OMS best practices relevant to your implementation.

Configurations
Cartegraph will provide configuration services, including:
• Up to ten (10) custom fields and up to two (2) custom layouts per asset type listed in the Assets section below
• Up to fifty (50) custom fields and up to ten (10) custom layouts to be utilized in any of the shared areas of the system, such as Tasks
• Up to twenty (20) automations
• Up to twenty (20) preventative maintenance plans
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Training
Cartegraph will provide remote train-the-trainer training, up to four (4) hours, on overall system navigation and functionality to help familiarize your staff with the software environment and its common functions. Training topics include:
• Dashboards
• Standard KPI/ROI Gadgets
• Logins/Permission
• Layers
• Filters
• Maps
• Grids
• System Navigation
• Views (List & Detail)
• Standard Reports
• Attachments
• Requests, Work, Assets, Resources, Reports, and Administrator Tabs

Cartegraph will provide remote train-the-trainer training, up to two (2) hours, on OMS Esri integration functionality. Training topics include:
• OMS Esri integration configuration options
• Integration functionality (basemap and feature)
• Overall Esri integration requirements, considerations, and Cartegraph recommended best practices

Cartegraph will provide a three-day (3-day) onsite "train-the-trainer" training event. The training agenda will be defined and agreed upon by both Cartegraph and your project manager. Topics may include any of the following:
• Request Management:
− Requests
− Requesters
− Task Creation from Requests
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THE CITY OF FOSTER CITY, CALIFORNIA

− Cartegraph recommended best practices for Request and Requester Management • Work Management:
− Create Task(s) (Asset/Non-Asset)
− Assignments (Add, Edit, Remove)
− Task Menu Actions
− Related Work Items
− Create Work Order
− Associate Task to WO
− Repeat Work Orders
− Work Order Menu Actions
− Enter Resources
− Timesheets
− Activity library (including settings such as Applies to Asset, Inspection, Key Dates, Cost, and Productivity)
− Cartegraph recommended best practices for Work Management • Asset Management:
− Asset Details
− Preventative Maintenance Plans
− Inspections
− Linked assets (if applicable)
− Container/Component Relationships (if applicable)
− Cartegraph recommended best practices for Asset Management To avoid redundancy, and to utilize service time efficiently, training may cover a subset of the assets listed in the Asset section of the scope.
• Fleet Management:
− Preventative Maintenance
− Task Management
− Vehicle Replacement Ratings (VRR) Equipment Detail information − Fleet Reports
− Cartegraph recommended best practices for Fleet Management • Resource Management:
− Resource Details
− Labor/Equipment Rates
− Material Management (Stock, Usage, Adjustments)
− Vendor Price Quotes
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THE CITY OF FOSTER CITY, CALIFORNIA

• Cartegraph Mobile:
− Overall system functionality (Navigation, Interface, Maps, Attachments, Sorting) − Work Management
o Create and Update Tasks (Asset/Non-Asset)
o Assign Tasks
o Enter Resources
o Inspections
− Asset Management: Create and Update Assets
− Request Management
o View and Update Requests
o View Requester information
o Create Task from Request
o Cartegraph recommended best practices for mobile device use • Administrator:
− Administrator: User Administration, Role Administration, Asset Administration, Record Filter Administration, Import/Export, Scheduled Process Log, Error Log − Settings: System Settings, Map Administration, Geocode Settings, GIS Integration settings, Asset Color Manager
− Manager: Layout Manager, Library Manager, Preventative Maintenance, Asset Condition Manager, Notification Manager, Structure Manager, Automation Manager

Cartegraph will provide remote train-the-trainer training, up to six (6) hours, on OMS Reporting functionality. Training topics include:
• Security/Roles
• Report Designer: Report Types, Report Styling, Filtering\Parameters, Basic Formulas, Grouping/Sorting
• Report Viewer
• Reporting best practices and solution tips/tricks

Cartegraph will provide remote train-the-trainer training, up to four (4) hours, on Preventative Maintenance Plans functionality. Training topics include:
• Preventative Maintenance
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To avoid redundancy, and to utilize service time efficiently, training may cover a subset of the assets listed in the Asset section of the scope.

Cartegraph will provide remote train-the-trainer training, up to four (4) hours, on Advanced Inspections and Asset Condition Manager functionality. Training topics include:
• Performance Management
− Prediction Groups
− Minimum Condition Groups
− Activities and Impacts
− Criticality Factor
− Install/Replaced Dates
• Cartegraph recommended best practices for advanced inspections and condition management
To avoid redundancy, and to utilize service time efficiently, training may cover a subset of the assets listed in the Asset section of the scope.

Go-Live Support
Cartegraph will provide a three-day (3-day) onsite for Go-Live Support. The agenda will be defined, and agreed upon, by both your and Cartegraph's project managers. Topics may include any of the following:
• Refresher training for items listed in the scope of work • Software and process support for staff during production roll out • Field, Layout, and Report configuration guidance, if applicable Data Services
Cartegraph will provide one test and one production data load service through standard import/export functionality. Cartegraph will provide template documents for data population.

Once populated by your staff, Cartegraph will load the data into your test or production OMS environment. Data loads may include data such as:
• Parent level asset records
• Asset location (spatial x/y) attributes
• Parent level resource (Labor, Equipment Material, Vendor) records • Resource Rate (Labor, Equipment, Material) records
• Standard system libraries
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Cartegraph will provide one test and one production custom data conversion service for your historical data listed below:
• MapGuide data related to: Assets, Work History
• For the custom data conversion service(s) listed above, Cartegraph will provide:
− A review of the historical data along with recommendations for OMS best fit. − A field map workshop, which will identify where and how historical data will appear within OMS
− A test conversion service to facilitate data conversion validation and testing − One revision of the field map used for the test conversion service − A production conversion service utilizing the final, approved field map All data must be accessible to Cartegraph from a SQL DB, SQL View, Access DB or Comma Delimited File.

Integration Services
Cartegraph will provide the following standard, uni-directional (one-way) integration service of water meter billing and work data between Naviline and Cartegraph. If additional or alternative functionality is desired, Cartegraph can provide an update to the scope and cost.

The standard integration includes the following integration points:
• Naviline utility billing data is integrated with Cartegraph Water Meters using the customer account number.
• Cartegraph Tasks are exported from Cartegraph and must be imported into Naviline by the user or a scheduled process, if possible.

Assumptions
• The integration includes up to twelve (12) fields in the same Cartegraph table. • Cartegraph will provide an error logging capability to easily identify potential integration issues.
• Cartegraph will provide a customer-configurable time interval to manage integration frequency.

Cartegraph staff will provide the following standard, uni-directional (one-way) integration service between Wonderware and Cartegraph.

If additional or alternative functionality is desired,
Cartegraph can provide an update to the scope and cost.

The standard integration includes the following
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• Integration points: Retrieve specified asset usage log data, and associate logs to the corresponding asset to support standard OMS preventative maintenance trigger and scheduling functionality.
• Cartegraph will provide an error logging capability to easily identify potential integration issues.
• Cartegraph will provide a customer-configurable time interval to manage integration frequency.

Assumptions
• The integration will include up to 12 fields (in the same Cartegraph recordset) • Customer staff will be responsible for populating required Tag values utilized to support integration triggers.
• All data must be accessible to the Cartegraph service from a SQL DB, SQL View, Comma Delimited File

Cartegraph staff will provide the following standard, uni-directional (one-way) integration service between Sensus Analytics and Cartegraph. If additional or alternative functionality is desired, Cartegraph can provide an update to the scope and cost.

The standard integration includes the following
• Integration points: Retrieve specified asset usage log data, and associate logs to the corresponding asset to support standard OMS preventative maintenance trigger and scheduling functionality.
• Cartegraph will provide an error logging capability to easily identify potential integration issues.
• Cartegraph will provide a customer-configurable time interval to manage integration frequency.

Assumptions
• The integration will include up to 12 fields (in the same Cartegraph recordset) • Customer staff will be responsible for populating required Tag values utilized to support integration triggers.
• All data must be accessible to the Cartegraph service from a SQL DB, SQL View, Comma Delimited File
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Assets
Cartegraph will provide installation and training on the following forty-four (44) asset types:
• Facilities (25): Facility; Other Site Construction; Selective Building Demolition; Site Improvement; Site Preparation; Facility Floor; Basement Construction; Conveying; Exterior Enclosures; Facility Electrical; Facility Equipment; Fire Protection; Foundations; Furnishings; HVAC; Interior Construction; Interior Finishes; Plumbing; Roofing; Site Electrical Utilities; Site Mechanical Utilities; Spaces; Special Construction; Stairs; Superstructure
• Parks and Recreation (10): Athletic Space; Fence; Park; Park Structure; Playground Equipment; Bench; Landscape Area; Park Amenity; Playground; Tree • Water Distribution (9): Water Backflow; Water Facility; Water Hydrant; Water Lateral; Water Main; Water Meter; Water Pump; Water Valve; Water Storage Tank Fleet
• Cartegraph will provide all services remotely via audio; video; and web conferences unless otherwise noted.

Exclusions
The following service items are not included in the scope of this project:
• Implementation of any custom modification or integration developed by Cartegraph; your internal staff; or any third party is not included in the scope of this project unless specifically listed above.
• Data conversion services from other software system(s) or sources (including Cartegraph Navigator databases) are not included in the scope of this project unless specifically listed above.
• Any service items discussed during demonstrations; conference calls; or other events are not included in the scope of this project unless specifically listed above.

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APPENDIX 4: REQUIRED FORMS

258
City of Foster City RFP – CMMS/EAM Software System including Deployment Services 2 4/11/2022
The City of Foster City is requesting pricing for a CMMS/EAM (Computerized Maintenance Management System/Enterprise Asset Management) solution, including deployment professional services. The vendor selected will be responsible for the implementation and maintenance of all selected components, project management, training, and providing a complete installation that meets the City’s performance requirements.

The City invites you to submit a proposal to furnish materials in accordance with the terms, conditions, and specifications contained in this document. Please complete the proposal form as instructed below and return it to the specified e-mail address by the due date. No extensions to the deadline will be allowed. All responses must be in an email to:

TO: Rob Lasky
[email protected]
Due Date: 5/2/2022
The undersigned proposes to provide solution and installation services to the City for the stated prices in accordance with the terms and conditions set forth in this document.

VENDOR:

Company Name Street Address of Company
Signature of Officer City, State, Zip
Printed Name of Officer Telephone No./Fax Nbr.

Title of Officer Federal I.D. Tax Number
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APPENDIX 5: PROPOSED MAINTENANCE CONTRACT

260
Cartegraph Systems LLC
Addendum A - Support Services
Cartegraph Support and Training Services – Scope of Work The Support Services listed in the Investment Summary of the Purchase Agreement are specific Cartegraph Services which will be delivered to the Customer based on the descriptions below and on the terms and conditions and subject to the limitations set forth in this Addendum A, the applicable Purchase Agreement, and the Cartegraph Solutions Agreement. Cartegraph will coordinate with the Customer on service delivery expectations and timeframes.

As part of Customer’s subscription to access and use of the Cartegraph Solutions, Customer will receive:

1. Support Services
a. Campus – www.cartegraph.com/campus
Our User Assistance area is a convenient and easily-shareable resource designed to help you and your co- workers better understand the functions and capabilities of your Cartegraph Solutions. Instantly access user tips, step-by-step guides, videos, and more.
b. Dedicated, Unlimited, Toll-free Phone Support - 877.647.3050 When questions need answers and difficulties arise, count on our industry-leading Support team to provide the guidance and assistance you need. Reach us as often as you need Monday-Friday, 7:00 am-7:00 pm CT. c. Secure, Live Remote Support
If your challenge requires a more hands-on approach, we have the remote support tools to fix it. Let one of our Support Team members directly interact with your system to find a fast, effective solution.

2. Training & Education Services
a. Convenient Online Resources
All the information you need, one click away. Take advantage of online training opportunities, tutorial videos, upcoming event information, and more.
b. Customer Led User Groups
Meet and network with similar Cartegraph users in your region. Customer led User Groups allow you to find out what other organizations are doing to get more from their Cartegraph solutions and services.

3. Releases & Upgrades
a. New Releases
Be the first to know about all new Cartegraph releases, enhancements, and upgrades. i. Your cloud-hosted site will be automatically upgraded by our System Consultants after the release is available. This way, you’ll experience increased system performance while gaining timely access to the latest features and functionality.
ii. For your on-Premises Installation, our Technical Consultants will work with your organization’s IT staff to receive the latest software release in a timely manner. This way, you’ll experience increased system performance while gaining prompt access to the latest features and functionality b. Hot Fixes
If an issue is determined to be a defect and falls outside the standard release cycle, Cartegraph will issue a hot fix and provide application specialists with detailed levels of product knowledge to work with you in achieving a timely and effective resolution

Cartegraph will provide the Support Services only to Customer, provided that Cartegraph reserves the right to contact any third party as necessary to facilitate the delivery of Support Services or other services re lating to the Solutions. Said support applies only to the most current version of the product and the previous version in succession.

All Support Services are dependent upon the use by Customer of the Solutions in accordance with Cartegraph’s documentation and specifications. Cartegraph is under no obligation to modify the Solutions so that the modified Solutions would depart from Cartegraph’s published documentation and specifications for such Solutions.

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City of Foster City, CA / 6/6/2022
Investment Summary
The following section describes Budget Proposal line items for Customer's Solution. Based on the core needs that have been identified and understanding the organization's budgeting and funding cycle, Cartegraph is providing the following Solution configuration.

Term 01 - 10/31/2022 - 10/30/2023 -
Services
No. Product Code Quantity Price
1 Expense Reimbursement LCG038 1.00 USD 4,800.00
1 Implementation Services CGPFSV 1.00 USD 45,600.00
Term 01 - 10/31/2022 - 10/30/2023 - Services TOTAL: USD 50,400.00 Term 01 - 10/31/2022 - 10/30/2023 -
Subscription
No. Product Code Quantity Price
1 OMS Plus OMSPLS 1 USD 12,732.44
2 Facilities Domain DOM001 1 USD 4,129.44
3 Parks & Recreation Domain DOM004 1 USD 1,720.60
4 Water Distribution Domain DOM010 1 USD 4,129.44
5 OMS User OMSUSR 20 USD 10,000.00
Term 01 - 10/31/2022 - 10/30/2023 - Subscription TOTAL: USD 32,711.92 No Travel required for remote
implementation
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DATE: June 20, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

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

SUBJECT: APPROVE AGREEMENT WITH ESRI INC. FOR A 3-YEAR

SMALL GOVERNMENT TERM ENTERPRISE LICENSE
AGREEMENT IN AN AMOUNT NOT TO EXCEED $115,500

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the Mayor to execute a 3-year Small Government Enterprise License Agreement (ELA) with ESRI Inc. in an amount not to exceed $115,500, reflecting annual payments of $38,500.

EXECUTIVE SUMMARY
Foster City has used ESRI ArcGIS software for the City's GIS (Geographic Information System) since 2016. ESRI ArcGIS Software is the de facto standard for municipal GIS software, and has provided the City with a fully- featured and well-supported GIS system. ESRI software is licensed as a 3- year term, and our current agreement is ending July 29, 2022.

BACKGROUND
ESRI ArcGIS Software is the current industry leader for GIS software.

Because of this market share, integration with other vendor's software is 263
simplified and/or built-in. ArcGIS is regularly updated and patched when vulnerabilities are discovered.

The City has taken advantage of a wide range of pre-written applications offered by ESRI (similar to an App Store concept). These applications address many required functions of a municipal GIS system, and this has allowed the City to avoid custom development.

Funding for this agreement is requested as part of the IT Operating Budget annually, in the IT Account No. 504-0160-419-4246 (Maintenance).

ANALYSIS
In 2016, the IT Division worked with the consulting firm Farallon Geographics to develop a GIS Strategic Plan and a GIS Roadmap document based on discussions with departmental GIS users. These documents helped to define the City’s needs and laid out options for how to achieve a successful transition to an ESRI-based GIS system.

One of the topics covered in the Roadmap document was the consultant’s recommendations for the licensing of the GIS software. Their recommendation was to license the ESRI software in the form of a Government Enterprise License Agreement (ELA). In an excerpt from the Roadmap document:
“The ELA will provide a basis for the City to gain unencumbered access to ESRI software licenses in a manner that is relatively easy to pre-plan and budget for.”
Other options for licensing were also analyzed, but they had limited access to the software, and a high upfront cost to purchase. The ELA is treated as a site license, allowing the City to use ESRI software as needed without requiring the addition of licenses as usage grows. Also, the annual subscription model makes the cost consistent year-to-year without a large initial investment.

The ELA also offers online training benefits as well as credits for usage of ArcGIS Online, which is a cloud service designed for simple and rapid mapping application deployment by casual users.
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The ELA is only available for purchase directly from ESRI. A sole source letter is attached.

FISCAL IMPACT
The ELA specifies a cost not to exceed $38,500 annually for a 3-year term.

This is an increase from the current annual cost of $35,000. However, this is the first price increase since 2016. Funding for the first year of the agreement (FY 2022-2023) is included in the IT Operating Budget. Costs for the second and third years of the contract term will be included in the proposed IT budget in those subsequent years.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This project is included in the "Innovation and Sustainability" Value/Priority Area. More specifically, it falls under the initiative "Prioritize City modernization efforts and explore Foster City applications." By continuing our subscription to ESRI ArcGIS, the IT Division plans to grow and enhance the City's GIS mapping capabilities. The upcoming CMMS (Computerized Maintenance and Management System) Project will tightly integrate with ArcGIS, and will allow crews to track maintenance they perform to the City’s infrastructure directly from the field.

Attachments:
Attachment 1 - Resolution
Attachment 2 - Agreement
Attachment 3 - ESRI Cover Letter
Attachment 4 - ESRI Quotation
Attachment 5 - ESRI Sole Source Letter
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RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY AUTHORIZING THE MAYOR TO EXECUTE A 3-YEAR SMALL GOVERNMENT ENTERPRISE LICENSE AGREEMENT (ELA) WITH ESRI INC. FOR GEOGRAPHIC

INFORMATION SYSTEM (GIS) SOFTWARE IN AN AMOUNT NOT TO EXCEED $115,500, REFLECTING ANNUAL PAYMENTS OF $38,500

CITY OF FOSTER CITY
WHEREAS, City has used ESRI ArcGIS software for Geographic Information System (GIS) functions since 2016; and
WHEREAS, GIS software supports the operations of the City; and WHEREAS, the subscription to the software is a sole source, as licensing can only be purchased from the manufacturer; and
WHEREAS, Staff recommends that the City enter a 3-year Small Government Enterprise License Agreement (ELA) with ESRI Inc. in an amount not to exceed $115,500, split into annual payments of $38,500; and
WHEREAS, sufficient funds are available in the Information Technology Operating Fund to cover the license of said software.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize the purchase of a license of ESRI Government Enterprise software for Geographic Information System (GIS) software from ESRI Inc. in an amount not to exceed $ 38,500 annually.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
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Esri Use Only:

Cust. Name
Cust. #
PO #
Esri Agreement #

SMALL ENTERPRISE AGREEMENT

COUNTY AND MUNICIPALITY GOVERNMENT
(E214-2)

This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri").

This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A.

Table A
List of Products

Uncapped Quantities
Desktop Software and Extensions (Single Use)
ArcGIS Desktop Advanced
ArcGIS Desktop Standard
ArcGIS Desktop Basic
ArcGIS Desktop Extensions: ArcGIS 3D Analyst,
ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst,
ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS
Schematics, ArcGIS Workflow Manager, ArcGIS Data
Reviewer

Enterprise Software and Extensions
ArcGIS Enterprise and Workgroup
(Advanced and Standard)
ArcGIS Monitor
ArcGIS Enterprise Extensions: ArcGIS 3D Analyst,
ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst,
ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS
Workflow Manager

Enterprise Additional Capability Servers
ArcGIS Image Server
Developer Tools
ArcGIS Engine
ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS
Spatial Analyst, ArcGIS Engine Geodatabase Update,
ArcGIS Network Analyst, ArcGIS Schematics
ArcGIS Runtime (Standard)
ArcGIS Runtime Analysis Extension

Limited Quantities
One (1) Professional subscription to ArcGIS Developer
Two (2) ArcGIS CityEngine Single Use Licenses
100 ArcGIS Online Viewers
100 ArcGIS Online Creators
17,500 ArcGIS Online Service Credits
100 ArcGIS Enterprise Creators
3 ArcGIS Insights in ArcGIS Enterprise
3 ArcGIS Insights in ArcGIS Online
10 ArcGIS Tracker for ArcGIS Enterprise
10 ArcGIS Tracker for ArcGIS Online
3 ArcGIS Parcel Fabric User Type Extensions (Enterprise) 3 ArcGIS Utility Network User Type Extensions (Enterprise) 3 ArcGIS Trace Network User Type Extensions (Enterprise)

OTHER BENEFITS

Number of Esri User Conference registrations provided annually 3 Number of Tier 1 Help Desk individuals authorized to call Esri 3 Maximum number of sets of backup media, if requested* 2 Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement
*Additional sets of backup media may be purchased for a fee

267

Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE

ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date").

Term of Agreement: Three (3) years

This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement.

Accepted and Agreed:

(Customer)

By:

Authorized Signature

Printed Name:

Title:

Date:

CUSTOMER CONTACT INFORMATION

Contact: Telephone:

Address: Fax:

City, State, Postal Code: E-mail:

Country:

Quotation Number (if applicable):
268

1.0—ADDITIONAL DEFINITIONS

In addition to the definitions provided in the Master
Agreement, the following definitions apply to this
Agreement:

"Case" means a failure of the Software or Online
Services to operate according to the Documentation
where such failure substantially impacts operational
or functional performance.

"Deploy", "Deployed" and "Deployment" mean to
redistribute and install the Products and related
Authorization Codes within Customer's
organization(s).

"Fee" means the fee set forth in the Quotation.

"Maintenance" means Tier 2 Support, Product
updates, and Product patches provided to Customer
during the Term of Agreement.

"Master Agreement" means the applicable master
agreement for Esri Products incorporated by this
reference that is (i) found at https://www.esri.com/en- us/legal/terms/full-master-agreement and available in
the installation process requiring acceptance by
electronic acknowledgment or (ii) a signed Esri
master agreement or license agreement that
supersedes such electronically acknowledged
master agreement.

"Product(s)" means the products identified in
Table A—List of Products and any updates to the list
Esri provides in writing.

"Quotation" means the offer letter and quotation
provided separately to Customer.

"Technical Support" means the technical
assistance for attempting resolution of a reported
Case through error correction, patches, hot fixes,
workarounds, replacement deliveries, or any other
type of Product corrections or modifications.

"Tier 1 Help Desk" means Customer's point of
contact(s) to provide all Tier 1 Support within
Customer's organization(s).

"Tier 1 Support" means the Technical Support
provided by the Tier 1 Help Desk.

"Tier 2 Support" means the Esri Technical Support
provided to the Tier 1 Help Desk when a Case
cannot be resolved through Tier 1 Support.

2.0—ADDITIONAL GRANT OF LICENSE

2.1 Grant of License. Subject to the terms and
conditions of this Agreement, Esri grants to
Customer a personal, nonexclusive,
nontransferable license solely to use, copy, and
Deploy quantities of the Products listed in
Table A—List of Products for the Term of
Agreement (i) for the applicable Fee and (ii) in
accordance with the Master Agreement.

2.2 Consultant Access. Esri grants Customer the
right to permit Customer's consultants or
contractors to use the Products exclusively for
Customer's benefit. Customer will be solely
responsible for compliance by consultants and
contractors with this Agreement and will ensure
that the consultant or contractor discontinues
use of Products upon completion of work for
Customer. Access to or use of Products by
consultants or contractors not exclusively for
Customer's benefit is prohibited. Customer may
not permit its consultants or contractors to install
Software or Data on consultant, contractor, or
third-party computers or remove Software or
Data from Customer locations, except for the
purpose of hosting the Software or Data on
Contractor servers for the benefit of Customer.

3.0—TERM, TERMINATION, AND EXPIRATION

3.1 Term. This Agreement and all licenses
hereunder will commence on the Effective Date
and continue for the duration identified in the
Term of Agreement, unless this Agreement is
terminated earlier as provided herein. Customer
is only authorized to use Products during the
Term of Agreement. For an Agreement with a
limited term, Esri does not grant Customer an
indefinite or a perpetual license to Products.

3.2 No Use upon Agreement Expiration or
Termination. All Product licenses, all
Maintenance, and Esri User Conference
registrations terminate upon expiration or
termination of this Agreement.

3.3 Termination for a Material Breach. Either party
may terminate this Agreement for a material
breach by the other party. The breaching party
will have thirty (30) days from the date of written
notice to cure any material breach.

3.4 Termination for Lack of Funds. For an
Agreement with government or government-
269

owned entities, either party may terminate this
Agreement before any subsequent year if
Customer is unable to secure funding through
the legislative or governing body's approval
process.

3.5 Follow-on Term. If the parties enter into
another agreement substantially similar to this
Agreement for an additional term, the effective
date of the follow-on agreement will be the day
after the expiration date of this Agreement.

4.0—PRODUCT UPDATES

4.1 Future Updates. Esri reserves the right to
update the list of Products in Table A—List of
Products by providing written notice to
Customer. Customer may continue to use all
Products that have been Deployed, but support
and upgrades for deleted items may not be
available. As new Products are incorporated into
the standard program, they will be offered to
Customer via written notice for incorporation into
the Products schedule at no additional charge.

Customer's use of new or updated Products
requires Customer to adhere to applicable
additional or revised terms and conditions in the
Master Agreement.

4.2 Product Life Cycle. During the Term of
Agreement, some Products may be retired or
may no longer be available to Deploy in the
identified quantities. Maintenance will be subject
to the individual Product Life Cycle Support
Status and Product Life Cycle Support Policy,
which can be found at
https://support.esri.com/en/other-
resources/product-life-cycle. Updates for
Products in the mature and retired phases may
not be available. Customer may continue to use
Products already Deployed, but Customer will
not be able to Deploy retired Products.

5.0—MAINTENANCE

The Fee includes standard maintenance benefits
during the Term of Agreement as specified in the
most current applicable Esri Maintenance and
Support Program document (found at
https://www.esri.com/en-
us/legal/terms/maintenance). At Esri's sole
discretion, Esri may make patches, hot fixes, or
updates available for download. No Software other
than the defined Products will receive Maintenance.

Customer may acquire maintenance for other
Software outside this Agreement.

a. Tier 1 Support

1. Customer will provide Tier 1 Support
through the Tier 1 Help Desk to all
Customer's authorized users.

2. The Tier 1 Help Desk will be fully trained in
the Products.

3. At a minimum, Tier 1 Support will include
those activities that assist the user in
resolving how-to and operational questions
as well as questions on installation and
troubleshooting procedures.

4. The Tier 1 Help Desk will be the initial point
of contact for all questions and reporting of a
Case. The Tier 1 Help Desk will obtain a full
description of each reported Case and the
system configuration from the user. This
may include obtaining any customizations,
code samples, or data involved in the Case.

5. If the Tier 1 Help Desk cannot resolve the
Case, an authorized Tier 1 Help Desk
individual may contact Tier 2 Support. The
Tier 1 Help Desk will provide support in such
a way as to minimize repeat calls and make
solutions to problems available to
Customer’s organization.

6. Tier 1 Help Desk individuals are the only
individuals authorized to contact Tier 2
Support. Customer may change the Tier 1
Help Desk individuals by written notice to
Esri.

b. Tier 2 Support

1. Tier 2 Support will log the calls received
from Tier 1 Help Desk.

2. Tier 2 Support will review all information
collected by and received from the Tier 1
Help Desk including preliminary documented
troubleshooting provided by the Tier 1 Help
Desk when Tier 2 Support is required.

3. Tier 2 Support may request that Tier 1 Help
Desk individuals provide verification of
information, additional information, or
answers to additional questions to
270

supplement any preliminary information
gathering or troubleshooting performed by
Tier 1 Help Desk.

4. Tier 2 Support will attempt to resolve the
Case submitted by Tier 1 Help Desk.

5. When the Case is resolved, Tier 2 Support
will communicate the information to Tier 1
Help Desk, and Tier 1 Help Desk will
disseminate the resolution to the user(s).

6.0—ENDORSEMENT AND PUBLICITY

This Agreement will not be construed or interpreted
as an exclusive dealings agreement or Customer's
endorsement of Products. Either party may publicize
the existence of this Agreement.

7.0—ADMINISTRATIVE REQUIREMENTS

7.1 OEM Licenses. Under Esri's OEM or Solution
OEM programs, OEM partners are authorized to
embed or bundle portions of Esri products and
services with their application or service. OEM
partners' business model, licensing terms and
conditions, and pricing are independent of this
Agreement. Customer will not seek any discount
from the OEM partner or Esri based on the
availability of Products under this Agreement.

Customer will not decouple Esri products or
services from the OEM partners' application or
service.

7.2 Annual Report of Deployments. At each
anniversary date and ninety (90) calendar days
prior to the expiration of this Agreement,
Customer will provide Esri with a written report
detailing all Deployments. Upon request,
Customer will provide records sufficient to verify
the accuracy of the annual report.

8.0—ORDERING, ADMINISTRATIVE

PROCEDURES, DELIVERY, AND

DEPLOYMENT

8.1 Orders, Delivery, and Deployment

a. Upon the Effective Date, Esri will invoice
Customer and provide Authorization Codes to
activate the nondestructive copy protection
program that enables Customer to download,
operate, or allow access to the Products. If this
is a multi-year Agreement, Esri may invoice the
Fee up to thirty (30) calendar days before the
annual anniversary date for each year.

b. Undisputed invoices will be due and payable
within thirty (30) calendar days from the date of
invoice. Esri reserves the right to suspend
Customer's access to and use of Products if
Customer fails to pay any undisputed amount
owed on or before its due date. Esri may charge
Customer interest at a monthly rate equal to the
lesser of one percent (1.0%) per month or the
maximum rate permitted by applicable law on
any overdue fees plus all expenses of collection
for any overdue balance that remains unpaid
ten (10) days after Esri has notified Customer of
the past-due balance.

c. Esri's federal ID number is 95-2775-732.

d. If requested, Esri will ship backup media to the
ship-to address identified on the Ordering
Document, FOB Destination, with shipping
charges prepaid. Customer acknowledges that
should sales or use taxes become due as a
result of any shipments of tangible media, Esri
has a right to invoice and Customer will pay any
such sales or use tax associated with the receipt
of tangible media.

8.2 Order Requirements. Esri does not require
Customer to issue a purchase order. Customer
may submit a purchase order in accordance with
its own process requirements, provided that if
Customer issues a purchase order, Customer
will submit its initial purchase order on the
Effective Date. If this is a multi-year Agreement,
Customer will submit subsequent purchase
orders to Esri at least thirty (30) calendar days
before the annual anniversary date for each
year.

a. All orders pertaining to this Agreement will be
processed through Customer's centralized point
of contact.

b. The following information will be included in
each Ordering Document:

(1) Customer name; Esri customer number, if
known; and bill-to and ship-to addresses
(2) Order number
(3) Applicable annual payment due

271

9.0—MERGERS, ACQUISITIONS, OR

DIVESTITURES

If Customer is a commercial entity, Customer will
notify Esri in writing in the event of (i) a
consolidation, merger, or reorganization of Customer
with or into another corporation or entity;
(ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's
organization (subsections i, ii, and iii, collectively
referred to as "Ownership Change"). There will be
no decrease in Fee as a result of any Ownership
Change.

9.1 If an Ownership Change increases the
cumulative program count beyond the maximum
level for this Agreement, Esri reserves the right
to increase the Fee or terminate this Agreement
and the parties will negotiate a new agreement.

9.2 If an Ownership Change results in transfer or
sale of a portion of Customer's organization, that
portion of Customer's organization will transfer
the Products to Customer or uninstall, remove,
and destroy all copies of the Products.

9.3 This Agreement may not be assigned to a
successor entity as a result of an Ownership
Change unless approved by Esri in writing in
advance. If the assignment to the new entity is
not approved, Customer will require any
successor entity to uninstall, remove, and
destroy the Products. This Agreement will
terminate upon such Ownership Change.

272
380 New York Street 909.793.2853 esri.com
Redlands, California 92373-8100 USA [email protected]
April 6, 2022
Information Technology Manager
City of Foster City
610 Foster City Blvd
Foster City, CA 94404-2222
Dear City of Foster City IT Manager and City ,
The Esri Small Municipal and County Government Enterprise Agreement ( SGEA) is a three‐year agreement that will grant your organization access to Esri term license software. The EA will be effective on the date executed and will require a firm, three‐year commitment.

Based on Esri's work with several organizations similar to yours, we know there is significant potential to apply Geographic Information System (GIS) technology in many operational and technical areas within your organization. For this reason, we believe that your organization will greatly benefit from an Enterprise Agreement (EA).

An EA will provide your organization with numerous benefits including:
▪ A lower cost per unit for licensed software
▪ Substantially reduced administrative and procurement expenses ▪ Complete flexibility to deploy software products when and where needed The following business terms and conditions will apply:
▪ All current departments, employees, and in-house contractors of the organization will be eligible to use the software and services included in the EA.
▪ If your organization wishes to acquire and/or maintain any Esri software during the term of the agreement that is not included in the EA, it may do so separately at the Esri pricing that is generally available for your organization for software and maintenance.
▪ The organization will establish a single point of contact for orders and deliveries and will be responsible for redistribution to eligible users.
▪ The organization will establish a Tier 1 support center to field calls from internal users of Esri software.

The organization may designate individuals as specified in the EA who may directly contact Esri for Tier 2 technical support.
▪ The organization will provide an annual report of installed Esri software to Esri. ▪ Esri software and updates that the organization is licensed to use will be automatically available for downloading.
▪ The fee and benefits offered in this EA proposal are contingent upon your acceptance of Esri’s Small Municipal and County Government EA terms and conditions.

Attachment 3 - Cover Letter
273
Small Government Enterprise Agreement
▪ Licenses are valid for the term of the EA.

This program offer is valid for 90 days. To complete the agreement within this time frame, please contact me within the next seven days to work through any questions or concerns you may have.

To expedite your acceptance of this EA offer:

1. Sign and return the EA contract with a Purchase Order or issue a Purchase Order that references this EA Quotation and includes the following statement on the face of the Purchase Order:
"THIS PURCHASE ORDER IS GOVERNED BY THE TERMS AND CONDITIONS OF THE ESRI

SMALL MUNICIPAL AND COUNTY GOVERNMENT EA, AND ADDITIONAL TERMS AND CONDITIONS IN THIS PURCHASE ORDER WILL NOT APPLY."
Have it signed by an authorized representative of the organization.

2. On the first page of the EA, identify the central point of contact/agreement administrator. The agreement administrator is the party that will be the contact for management of the software, administration issues, and general operations. Information should include name, title (if applicable), address, phone number, and e-mail address.

3. In the purchase order, identify the "Ship to" and "Bill to" information for your organization.

4. Send the purchase order and agreement to the address, email or fax noted below:

Esri
Attn: Customer Service SG-EA
380 New York Street
Redlands, CA 92373-8100
e-mail: [email protected]
fax documents to: 909-307-3083
I appreciate the opportunity to present you with this proposal, and I believe it will bring great benefits to your organization.

Thank you very much for your consideration.

Best Regards,
Jesse Gonzalez
Attachment 3 - Cover Letter
274
Quotation # Q-458334
Date: April 5, 2022
Environmental Systems Research Institute, Inc.
380 New York St
Redlands, CA 92373-8100
Phone: (909) 793-2853 Fax: (909) 307-3049
DUNS Number: 06-313-4175 CAGE Code: 0AMS3
Customer # 3407 Contract #
City of Foster City
610 Foster City Blvd
Foster City, CA 94404-2222
To expedite your order, please attach a copy of ATTENTION: Rob Lasky this quotation to your purchase order. PHONE: (650) 286-3216 Quote is valid from: 4/5/2022 To: 7/4/2022 EMAIL: [email protected] Material Qty Term Unit Price Total
168178 1 Year 1 $38,500.00 $38,500.00
Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement 168178 1 Year 2 $38,500.00 $38,500.00
Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement 168178 1 Year 3 $38,500.00 $38,500.00
Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement Subtotal: $115,500.00
Sales Tax: $0.00
Estimated Shipping and Handling (2 Day Delivery): $0.00 Contract Price Adjust: $0.00
Total: $115,500.00
Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program.

For questions contact:

Jesse Gonzalez
Email:
[email protected]
Phone:
(909) 793-2853 x1106
The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at
https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA.

GONZALEZJ This offer is limited to the terms and conditions incorporated and attached herein.

Attachment 4 - ESRI Quotation
275
J-8933-SGE/JR 4/21/2016
Esri 380 New York St., Redlands, CA 92373-8100, USA • TEL 909-793-2853 • FAX 909-793-5953 • E-MAIL [email protected] • WEB www.esri.com

SOLE SOURCE LETTER
Environmental Systems Research Institute, Inc. (Esri)
380 New York Street
Redlands, CA 92373
Telephone: 909-793-2853, Ext. 1-1990
Email: [email protected]
DATE: April 21, 2016
TO: Rob Lasky, Foster City
FROM: Jackie Ricks, Esri Contracts and Legal Services
RE: Esri Sole Source Justification for Small Municipal and County Government Enterprise Agreement
This letter confirms Esri, as owner and manufacturer, is the sole source provider of all U.S. domestic Small Municipal and County Government Enterprise Agreements (EA). The Small Municipal and County Government EA is a bundled package of term limited software licenses and maintenance that includes the right to copy.

Esri is the only source that can grant a right to copy and deploy Enterprise Software within your organization (Enterprise). Also, domestically Esri is the only source of maintenance (updates and technical support) for all Esri® software.

If you have further questions, please feel free to call our Contracts and Legal Services Department at 909-793-2853, extension 1990.

Attachment 5 - ESRI Sole Source Letter
276
DATE: June 20, 2022

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

VIA: Edmund Suen, Interim City/District Manager

FROM: Louis Sun, Public Works Director
Andra Lorenz, Principal Management Analyst

SUBJECT: ESTABLISHING A NEW FUND 141 FOR SB 1383

IMPLEMENTATION AND ESTABLISHING A REVENUE
BUDGET OF $47,314 FOR FISCAL YEAR 2021-2022

RECOMMENDATION
It is recommended that the City Council approve the attached resolution establishing a new Fund 141 to capture funding sources specific to SB 1383 implementation and approving the Fiscal Year 2021-2022 Revenue Budget for Fund 141 of $47,314.

EXECUTIVE SUMMARY
Foster City applied for, was granted, and received a check for $47,314 in the first round of the California Department of Resources Recycling and Recovery (CalRecycle) SB 1383 Local Assistance Grant Program.

Staff recommends that the City Council create a new Fund 141 in order to separately account for funding sources specific to SB 1383 Implementation.

Since funding has been received in Fiscal Year 2021-2022, the City Council needs to establish the fund and set a Fiscal Year 2021-2022 revenue budget equal to the amount received of $47,314.
277

BACKGROUND
In September 2016, SB 1383 (Lara, Chapter 395, Statutes of 2016) established statewide goals to reduce the disposal of organic waste and recover edible food for human consumption. To accomplish these statewide goals, SB 1383 regulations were approved on November 3, 2020. These regulations include prescriptive requirements for jurisdictions related to recycling and organics collection, inspection, enforcement policies and programs and edible food recovery. The cost for these new requirements is significant and a variety of funding sources are likely to be required.

Foster City applied for and was granted $47,314 in the first round of the CalRecycle SB 1383 Local Assistance Grant Program. The funds are specifically to be used to meet the City’s required procurement target of recycled content products (compost). The funds were received on June 6, 2022.

ANALYSIS
Staff recommends that the City Council create a new Fund 141 in order to separately account for funding sources specific to SB 1383 Implementation.

Because of the broad and on-going nature of SB 1383 regulations and the level of effort needed to put all of the regulations into place, it is likely that additional future revenues will become available in addition to the current Local Assistance grant.

Since funding has been received in Fiscal Year 2021-2022, the City Council needs to establish the fund and set a Fiscal Year 2021-2022 revenue budget equal to the amount received of $47,314.

FISCAL IMPACT
There is no direct cost to establish the fund. By so doing, the City Council will make it possible to properly segregate and track alternative, non-General Fund, funding sources specific to SB 1383 implementation.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This item is in alignment with the "City Council Operations and Improved Community Engagement" Value/Priority Area, since it promotes the highest 278
level of transparency in operations.

Attachments:
Attachment 1 - Resolution
279
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ESTABLISHING A NEW FUND 141 FOR SB 1383 IMPLEMENTATION AND ESTABLISHING AN FY 2021-2022 REVENUE BUDGET OF $47,314

CITY OF FOSTER CITY
WHEREAS, Foster City has received funding in the first round of the SB 1383 Local Assistance Grant Program from the California Department of Resources Recycling and Recovery (CalRecycle); and
WHEREAS, creating a new Fund 141 will allow the City to separately account for this current grant and any future funding sources specific to SB 1383 Implementation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby:

1. Establish a new Fund 141 to capture funding sources specific to SB 1383 implementation; and

2. Approve a Fiscal Year 2021-2022 Revenue Budget for Fund 141 of $47,314 PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
280
DATE: June 20, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

FROM: Julie Paping, Interim Principal Management Analyst

SUBJECT: A RESOLUTION URGING SUTTER HEALTH TO REOPEN THE MACK E. MICKELSON THERAPY POOL IN SAN MATEO FOR

PUBLIC USE

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution urging Sutter Health to reopen the Mack E. Mickelson Therapy Pool in San Mateo for public use.

EXECUTIVE SUMMARY

At the May 2, May 16, and June 6, 2022 City Council regular meetings, members of the public requested City Council’s support in urging Sutter Health to reopen the Mack E. Mickelson Therapy Pool (Mickelson Therapy Pool) for public use. Following the public comment on June 6, Mayor Awasthi requested to agendize for City Council consideration a resolution urging the reopening of the Mickelson Therapy Pool. There was no objection from City Council on the request to agendize the resolution.

BACKGROUND/ANALYSIS

The Mickelson Therapy Pool is a fully accessible, warm water therapy pool operated by Sutter Health that was constructed over 25 years ago using charitable contributions from San Mateo County residents. Since its opening, 281
the Mickelson Therapy Pool has been used by thousands of San Mateo County residents who suffer from a broad range of health issues, including permanent disabilities, debilitating injuries, autoimmune disorders, and mobility impairments.

In March of 2020, the Mickelson Therapy Pool was closed due to the COVID- 19 pandemic, and then in June of 2021, Sutter Health announced that it would permanently close the pool to independent use by patrons. San Mateo County residents who relied on the warm water therapy pool for relief are now suffering from chronic pain and other health issues due to the pool’s closure as it was the only facility of its kind in San Mateo County.

Nearly 4,700 people have signed a petition on Change.org calling for the reopening of the pool for public use. The San Mateo County Board of Supervisors, Millbrae City Council, and Burlingame City Council have all issued resolutions calling on Sutter Health to reopen the pool for public use, and Assemblymember Kevin Mullin and State Senator Josh Becker have written letters to Sutter Health urging them to find a solution allowing public access of the Mickelson Therapy Pool.

At the City Council Regular Meetings on May 2, May 16, and June 6, 2022, members of the public addressed the City Council to request consideration of a resolution showing Foster City’s support for reopening the Mickelson Therapy Pool. Following the public comment on June 6, Mayor Awasthi requested to agendize for City Council consideration a resolution urging the reopening of the Mickelson Therapy Pool for public use. There was no objection from City Council to the request to agendize the resolution.

FISCAL IMPACT

There is no fiscal impact associated with this item.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORTIY AREA

This item is aligned with the City Council vision “to enhance our quality of place for current and future generations.” The Mickelson Therapy Pool improves the quality of life and place for thousands of residents of San Mateo County suffering from a broad range of health issues.

282

Attachments:
Attachment 1 – Resolution
283
RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY URGING SUTTER HEALTH TO REOPEN THE MACK E. MICKELSON THERAPY POOL IN SAN

MATEO FOR PUBLIC USE

CITY OF FOSTER CITY
WHEREAS, the Mack E. Mickelson Therapy Pool is an ADA-accessible warm water therapy pool operated by Sutter Health and located at the Mills Health Center in San Mateo, California; and
WHEREAS, the Mack E. Mickelson Therapy Pool was constructed over 25 years ago using charitable contributions from San Mateo County residents as a centerpiece of an arthritis center created by Mills Peninsula; and
WHEREAS, the Mack E. Mickelson Therapy Pool provided both preventative and interventionist therapies to San Mateo County residents suffering from a broad range of health issues; and
WHERAS, there is a growing need for the therapy pool due to San Mateo County’s rapidly increasing number of elderly residents who are highly likely to suffer from health issues requiring a warm water therapy pool; and
WHEREAS, there is no comparable warm water therapy pool in San Mateo County that can adequately accommodate the residents who relied on the Mack E. Mickelson Therapy Pool for relief from acute and chronic physical pain; and WHEREAS, in June 2021, Sutter Health announced it would permanently close the Mack E. Mickelson Therapy Pool to independent use by patrons despite the therapy pool serving as a valuable healthcare resource; and
WHEREAS, as of June 7, 2022, nearly 4,700 patients, caregivers, and community members have signed a petition to reopen the Mack E. Mickelson Therapy pool for public use; and
WHEREAS, reopening the Mack E. Mickelson Therapy Pool for community use with the same open access hours it had prior to January 2020 would improve the health and quality of life of San Mateo County residents who relied on the therapy pool to maintain their health, independence, and dignity.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby urge Sutter Health to reopen the Mack E. Mickelson Therapy Pool in San Mateo for public use.
284
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
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DATE: June 20, 2022

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

VIA: Edmund Suen, Interim City/District Manager

FROM: Jennifer Phan, Interim Deputy City Manager
Julie Paping, Interim Principal Management Analyst

SUBJECT: EXTENDING THE PROCLAMATION OF THE EXISTENCE OF A

LOCAL EMERGENCY, THE CONTINUING NEED FOR CITY

COUNCIL AND PLANNING COMMISSION AND COMMITTEES

TO MEET BY TELECONFERENCE FOR INCREASED

ACCESSIBILITY, AND A GENERAL UPDATE ON THE NOVEL
CORONAVIRUS (COVID-19)

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors adopt the attached resolutions extending the proclamation of the existence of a local emergency caused by the threat of the novel Coronavirus (COVID-19), and proclaiming the continuing need for City Council/EMID Board of Directors, Planning Commission, and Committees to meet by teleconference and allow for increased meeting accessibility via in person and teleconference meeting participation (Attachments 1 and 2).

The general update is informational only and no further action is required.

BACKGROUND
On March 4, 2020, Governor Gavin Newsom declared a State of Emergency 286
in response to the outbreak of respiratory illness due to the novel Coronavirus (COVID-19). On March 5, 2020, San Mateo County declared a Local Health Emergency pursuant to Health and Safety Code Section 101080 due to the introduction of COVID-19 in San Mateo County. On March 16, 2020, the County of San Mateo Public Health Officer issued an order to "shelter in place", effective March 17, 2020 at 12:01 am. This order, amongst other things, ceased non-essential activities in the County in an effort to mitigate the impacts of COVID-19. Essential City operations like police, fire, and wastewater treatment services, as well as the maintenance of critical infrastructure, are continuing to be provided. Most other City services have returned to pre-pandemic levels or have been reasonably modified (for a limited basis) in conjunction with the Health Officer’s order or to administer City operations.

The City Manager, acting as the City’s Director of Emergency Services, was authorized to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency. As a result, on March 16, 2020, the City Manager acting as Director of Emergency Services proclaimed the existence of a local emergency due to conditions and threatened conditions of peril due to the expansion of the COVID-19 virus. Pursuant to California Government Code Section 8630, the City Council ratified the proclamation made by the Director of Emergency services on March 18, 2020 per Resolution No. 2020-23, within the required seven (7) days of the proclamation.

Local Emergency
Since the proclamation of the existence of a local emergency back in March, the City Council has continued to receive updates at its meetings on the operational impacts and actions taken by the City related to COVID-19. The City Council had also received an overview of the City's recovery plan at its Vision & Policy Summit on June 4, 2020 and a presentation from the County of San Mateo on its Recovery Initiative on October 5, 2020. On October 6, 2020, the County Board of Supervisors accepted the final report on the SMC Recovery Initiative, which outlines a path toward a more equitable, healthy and connected community in the recovery from COVID-19.

To-date, the City Council had approved the continuation of the proclamation of the existence of a local emergency at its meetings on April 6, June 1, July 20, September 8, November 2, 2020, January 4, March 1, May 17, July 19, September 20, November 15, December 13, 2021, January 18, February 22, 287
March 21, April 18, and May 16, 2022. Per Government Code Section 8630, the City Council must reevaluate whether to continue the proclamation of the existence of a local emergency every sixty (60) days until the emergency is terminated. Given the conditions creating the local emergency have not entirely abated, one of the items for City Council consideration is to extend the proclamation.

Continuing In-Person/Teleconference Hybrid Meetings
Assembly Bill 361 (AB 361) was signed into law by the Governor on September 16, 2021. AB 361 comes as the provisions of Executive Order No.

N-29-20 (as revised by Executive Order No. N-08-21), which modifies the requirements for conducting meetings via teleconference during the COVID- 19 pandemic, expired on September 30, 2021. While the intent of Executive Order No. N-29-20 and AB 361 are both to facilitate public access to meetings via teleconferencing options, there are differences between the two. AB 361 amends the Brown Act to allow local legislative bodies to continue using teleconferencing and virtual meeting technology after the September 30, 2021 expiration of the current Brown Act exemptions as long as there is a “proclaimed state of emergency” by the Governor and certain findings are made regarding the need to conduct teleconferenced meetings.

On October 18, 2021, the City Council/Board of Directors approved resolutions to implement and utilize teleconference accessibility to conduct public meetings, pursuant to AB 361. Findings must be made every thirty (30) days to continue to the practice of such. By approving the resolutions attached, the City Council/EMID Board, Planning Commission, and Committees may continue to conduct meetings as they have been without interruption, allowing for increased accessibility to the public and meeting participants to join in person or via teleconference, as applicable. Approving the resolutions under AB 361 would also allow the continued flexibility that was provided by Executive Order No. N-29-20 to allow
Councilmembers/EMID Board Members or Planning Commissioners and other Committee Members to attend the meeting via teleconference without following the normal teleconference requirements under the Brown Act, which include listing the teleconference location on the published agenda and posting the agenda at the site of the teleconference. If circumstances change and it is determined that safety concerns prohibit in-person meeting participation entirely, members may pivot to teleconferencing only without the 288
preparation that is otherwise required under the Brown Act, while maintaining accessible public meetings.

Timeline
A summarized timeline of the various directives and orders as it pertains to the County of San Mateo, from the start of the pandemic to-date, is outlined in Attachment 3. At the outset of the pandemic, health orders were frequently changing in response to the varying COVID-19 case/transmission rates. City staff has since then provided updates to City Council at its regular meetings to keep both the City Council and the community abreast of any new developments on COVID-19 that may arise. The frequency of these updates transitioned to a monthly basis on March 2020. In alignment with the State's reopening, as well as the County of San Mateo ceasing its biweekly briefings, these updates are provided (for informational purposes only) on an as needed basis or every thirty (30) days when the proclamation of the existence of a local emergency is brought brought back to City Council for renewal (until no longer necessary) in conjunction with the findings of continuing the need to conduct teleconferenced meetings until no longer applicable. Timely updates and information will continue to be issued and available through the County of San Mateo directly, or on the City website and via the weekly e-Newsletter.

Latest Updates
The rate of COVID-19 cases has increased in San Mateo County and the Bay Area region in recent weeks. San Mateo County is not considering reimposing indoor masking requirements; however, the San Mateo County Health Department, CDC, and California Department of Public Health strongly encourage masking as a way to prevent exposure to COVID-19. The San Mateo County Health Chief is encouraging residents to take the following key actions to "LIMITT" COVID:
Limit large gatherings to well-ventilated areas or outdoors. Improve ventilation.
Mask. Respirator masks (N95s) provide better protection than cloth masks.
Isolate for COVID. Stay home if you feel sick.
Test if you have symptoms.
Treatments are available if you test positive.
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As part of the federal Test to Treat program, San Mateo County is offering Test to Treat sites where individuals can be tested for COVID-19 and, if positive, assessed for oral medications to be dispensed at the site. Test to Treat facilities are available in San Mateo County at the LHI/Optum Serve COVID-19 testing sites located in San Mateo, Half Moon Bay, Pacifica, Daly City, and South San Francisco. More information on Test to Treat options can be found at: https://www.smcgov.org/covid-19-testing.

Vaccinations and first and second booster shots are still available throughout San Mateo County, at County-sponsored clinics, community clinics, private health care providers, pharmacies and other venues. To find a clinic, please visit https://www.smchealth.org/vaccine-clinic-calendar. Appointments are not required, though strongly encouraged, as only a limited number of participants without appointments may be vaccinated. Appointments can be made at https://myturn.ca.gov or by calling the CA COVID-19 Hotline at 1- 833-422-4255.

Adults 50 years and older and people ages 12 years and older who are moderately or severely immunocompromised are now eligible for a second COVID-19 booster, four months after their first booster. Those eligible for a second booster may book an appointment through the state's MyTurn system as of April 6. The County Health's community clinics will provide boosters for walk-ins, though appointments are recommended to avoid long waits.

As of June 7, 2022, a total of 701,069 individuals have been vaccinated in San Mateo County with at least one dose, representing over 95% of the population age 5+. It is important to note, the County is now capping the vaccination rate displayed on its data dashboard at 95% to help address potential over-estimates of vaccination coverage.

ANALYSIS
With the disruption in normal operations due to COVID-19 and the Public Health Order to “Shelter in Place”, City operations were implemented based on essential functions identified in the City's Continuity of Operations (COOP) and Continuity of Government (COG) Plan.

In the City's response to COVID-19, the main objective is to keep the community safe, reduce the risk of transmission, and help slow the spread of the novel Coronavirus (COVID-19). Outlined in the COVID-19 Response Plan 290
Summary are six broad priority areas in which the City has focused its efforts to-date (Attachment 4).

FISCAL IMPACT
There is no fiscal impact associated with adoption of the resolutions.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This item is in alignment to the "City Council Operations and Improved Community Engagement," "Public Safety and Social Equity," and "Staff Empowerment and Operational Excellence" Value/Priority Areas. The City recognizes the importance of reliable and timely communications to public, and as such, will continue to ensure delivery of information for all matters related to City services and COVID-19 response and recovery are shared.

Increasing accessibility to public meetings amid the COVID-19 crisis encourages the public to engage with the City Council/EMID Board of Directors, Planning Commission, and Committees in an equitable and safe manner.

Attachments:
Attachment 1 - City Resolution (Extending the Local Emergency and Continuing the Need for Teleconferencing)
Attachment 2 - EMID Resolution (Continuing the Need for Teleconferencing)
Attachment 3 - COVID-19 Timeline (as of June 7, 2022)
Attachment 4 - COVID-19 Response Plan Summary (as of June 7, 2022)
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RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

EXTENDING THE PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY CAUSED BY THE THREAT OF THE NOVEL COVID-19 VIRUS, AND PROCLAIMING

THE CONTINUING NEED FOR THE CITY COUNCIL, PLANNING COMMISSION AND

COMMITTEES TO MEET BY TELECONFERENCE AND ALLOWING FOR INCREASED

MEETING ACCESSIBILITY VIA IN PERSON AND TELECONFERENCE MEETING

PARTICIPATION

CITY OF FOSTER CITY
WHEREAS, on January 30, 2020, due to confirmed cases of a severe acute respiratory illness caused by a new coronavirus (“COVID-19”), the World Health Organization (“WHO”) declared the COVID-19 outbreak a public health emergency of international concern, and on January 31, 2020, the U.S. Department of Health and Human Services declared a Public Health Emergency for the United States of America; and
WHEREAS, on or about March 4, 2020, as part of the State of California's response to address the global COVID-19 outbreak, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19; and
WHEREAS, on March 5, 2020, San Mateo County declared a Local Health Emergency pursuant to Health and Safety Code Section 101080 due to the potential introduction of COVID-19 in San Mateo County; and
WHEREAS, on March 12, 2020, the President of the United States declared a National Emergency in response to the spread of COVID-19; and WHEREAS, Section 2.40.070(A) of the Foster City Municipal Code empowers the City Manager, as the Director of Emergency Services, to proclaim (subject to ratification by the City Council within seven days) the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity and the City Council is not in session; and
WHEREAS, based on the expanding threat of the novel COVID-19 virus, the City Manager, Acting as Director of Emergency Services, of the City of Foster City proclaimed the existence of a local emergency within the City on March 16, 2020; and WHEREAS, on March 18, 2020, per Resolution No. 2020-23, the City Council of the City of Foster City ratified the proclamation of the Director of Emergency Services and 292
extended the period of the existence of a Local Emergency for an additional 30 days or unless sooner terminated; and
WHEREAS, on April 6, 2020, June 1, 2020, July 20, 2020, September 8, 2020, November 2, 2020, January 4, 2021, March 1, 2021, May 17, 2021, July 19, 2021, September 20, 2021, November 15, 2021, December 13, 2021, January 18, February 22, March 21, April 18, and May 16, 2022, per Resolutions No. 2020-33, 2020-50, 2020-75, 2020-96, 2020-113, 2021-9, 2021-24, 2021-63, 2021-103, 2021-129, 2021-172, 2021- 185, 2022-5, 2022-15, 2022-28, 2022-39, and 2022-52 respectively, the City Council of the City of Foster City extended the period of the existence of a Local Emergency for an additional 60 days or unless sooner terminated; and
WHEREAS, San Mateo County had completed the variance process as set forth by the California Department of Public Health on June 15, 2020, allowing the County for a gradual re-opening to match the maximum as allowed by the State’s Resilience Roadmap; and
WHEREAS, although collective efforts taken to date regarding this public health emergency have slowed the virus’ trajectory, the emergency and the attendant risk to public health remain significant; and
WHEREAS, San Mateo County was added to the State’s monitoring list on July 29, 2020 and since then ranked in the Purple or Widespread risk level on August 28, 2020, in the Red or Substantial risk level on September 22, 2020, in the Orange or Moderate risk level on October 27, 2020, and in the Red or Substantial risk level on November 17, 2020; and
WHEREAS, San Mateo County then rolled back to the Purple or Widespread risk level on November 29, 2020 and a Limited Stay at Home order went into effect on November 30, 2020, with a Regional Stay at Home order to follow on December 17, 2020; and
WHEREAS, once the Regional Stay at Home order was lifted, San Mateo County rolled back to the Purple or Widespread risk level on January 25, 2021, moving into the Red or Substantial risk level on February 24, and then into the Orange or “Moderate” risk level on March 17; and
WHEREAS, the State has transitioned away from the Blueprint for a Safer Economy beginning June 15, 2021; however, the conditions creating the local emergency have not entirely abated, COVID-19 continues to threaten the health and lives of Foster City residents and Delta variant and other variants continue to emerge and are highly transmissible in indoor settings; and
WHEREAS, San Mateo County continues to experience COVID-19 cases and related hospitalizations; and
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WHEREAS, the Ralph M. Brown Act allows local legislative bodies to meet by teleconference so long as the enumerated requirements are met (California Government Code section 54953); and
WHEREAS, on March 18, 2020, and every 60 days thereafter, the City of Foster City passed a resolution proclaiming a Local Emergency, as defined by the California Emergency Services Act (California Government Code section 8558) as a result of the Coronavirus (COVID-19) pandemic; and
WHEREAS, the recently amended Ralph M. Brown Act allows local legislative bodies to continue meeting by teleconference during a gubernatorial proclaimed state of emergency if the local legislative body determines, by majority vote, that as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees (California Government Code section 54953(e)(1)(B)); and WHEREAS, on October 18, 2021 the City Council adopted City Resolution No. 2021-155 proclaiming the continuing need for the City Council, Planning Commission and Committees to meet by teleconference and allowing for increased meeting accessibility via in person and teleconference meeting participation; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Foster City:

1. The proclamation of a local emergency is hereby extended for at least an additional 60 days, or until the proclamation is next extended by resolution. Per Government Code Section 8630, the City Council shall review and renew this declaration every 60 days until the emergency is terminated.

2. The City Council of the City of Foster City hereby declares that the recitals set forth above are true and correct, and incorporated into this resolution as findings of the City Council.

3. Due to COVID-19, holding meetings in-person only will present imminent risks to the health and safety to attendees; and

4. The City Council/EMID Board of Directors and Planning Commission have safety measures and technology in place to allow hybrid meetings which allow in-person and teleconferenced appearances at meetings, which reduces the risks to health and safety of appearing in person for meetings because the number of attendees is reduced. Committees have conducted meetings remotely during the course of the COVID-19 pandemic and are now conducting meetings in accordance with Government Code section 54953(e).

5. The State of California and the City of Foster City continue to follow safety measures in response to COVID-19 as ordered or recommended by the Centers 294
for Disease Control and Prevention (CDC), California Department of Public Health (DPH), and/or County of San Mateo, as applicable, including facial coverings when required. Based upon that guidance, in-person attendance indoors at public meetings continues to present a health risk for certain segments of the population, necessitating the need to reduce the number of in-person meeting attendees.

6. The City Council hereby declares that, pursuant to the findings listed in this Resolution, that the City Council/EMID Board of Directors and the City Council/EMID Board appointed Commissions and Committees are authorized to utilize teleconferencing to conduct public meetings pursuant to AB 361 and Government Code § 54953, as amended thereby.

BE IT FURTHER RESOLVED, that the City Council determines that, every 30 days, it will reconsider the circumstances of the emergency and review whether it continues to directly impact the ability of the Council/EMID Board and appointed Committee and Commission members to meet safely in person.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the special meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
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RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT PROCLAIMING THE CONTINUING NEED FOR THE

ESTERO MUNICIPAL IMPROVEMENT DISTRICT BOARD OF DIRECTORS,

PLANNING COMMISSION, AND COMMITTEES TO MEET BY TELECONFERENCE

AND ALLOWING FOR INCREASED MEETING ACCESSIBILITY VIA IN PERSON AND

TELECONFERENCE MEETING PARTICIPATION

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the Ralph M. Brown Act allows local legislative bodies to meet by teleconference so long as the enumerated requirements are met (California Government Code section 54953); and
WHEREAS, on March 18, 2020, and every 60 days thereafter, the City of Foster City passed a resolution proclaiming a Local Emergency, as defined by the California Emergency Services Act (California Government Code section 8558) as a result of the Coronavirus (COVID-19) pandemic; and
WHEREAS, the recently amended Ralph M. Brown Act allows local legislative bodies to continue meeting by teleconference during a gubernatorial proclaimed state of emergency if the local legislative body determines, by majority vote, that as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees (California Government Code section 54953(e)(1)(B)); and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency as a result of the COVID-19 pandemic and such State of Emergency remains in effect; and
WHEREAS, COVID-19 continues to threaten the health and lives of Foster City residents and Delta variant and other variants continue to emerge and are highly transmissible in indoor settings; and
WHEREAS, on October 28, November 15, December 13, 2021, January 18, February 22, March 21, April 18, and May 16, 2022 per Resolutions No. 3610, 3621, 3624, 3630, 3634, 3637, 3644, and 3646 respectively, the EMID Board of Directors proclaimed the continuing need for the Estero Municipal Improvement District Board of Directors, Planning Commission, and Committees to meet by teleconference and allowed for increased meeting accessibility via in person and teleconference meeting participation; and
WHEREAS, San Mateo County continues to experience COVID-19 cases and related hospitalizations.
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NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of Directors of the Estero Municipal Improvement District finds that:

1. The Estero Municipal Improvement District Board of Directors (EMID Board) hereby declares that the recitals set forth above are true and correct, and incorporated into this resolution as findings of the EMID Board.

2. Due to COVID-19, holding meetings in-person only will present imminent risks to the health and safety to attendees; and

3. The City Council/EMID Board of Directors and Planning Commission have safety measures and technology in place to allow hybrid meetings which allow in-person and teleconferenced appearances at meetings, which reduces the risks to health and safety of appearing in person for meetings because the number of attendees is reduced. Committees have conducted meetings remotely during the course of the COVID-19 pandemic and are now conducting meetings in accordance with Government Code section 54953(e).

4. The State of California and the City of Foster City continue to follow safety measures in response to COVID-19 as ordered or recommended by the Centers for Disease Control and Prevention (CDC), California Department of Public Health (DPH), and/or County of San Mateo, as applicable, including facial coverings when required. Based upon that guidance, in-person attendance indoors at public meetings continues to present a health risk for certain segments of the population, necessitating the need to reduce the number of in-person meeting attendees.

5. The EMID Board of Directors hereby declares that, pursuant to the findings listed in this Resolution, that the City Council/EMID Board of Directors and the City Council/EMID Board appointed Commissions and Committees are authorized to utilize teleconferencing to conduct public meetings pursuant to AB 361 and Government Code § 54953, as amended thereby.

BE IT FURTHER RESOLVED, that the EMID Board of Directors determines that, every 30 days, it will reconsider the circumstances of the emergency and review whether it continues to directly impact the ability of the Council/EMID Board and appointed Committee and Commission members to meet safely in person. 297
PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the special meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY
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Attachment 3
NOVEL CORONAVIRUS (COVID-19) TIMELINE
Last Updated: Wednesday, June 8 , 2022

DATE ACTIVITY/DESCRIPTION
March 4, 2020 Governor Gavin Newsom declared a State of Emergency in response to the outbreak of respiratory illness due to the novel Coronavirus (COVID-19).

March 5, 2020 County of San Mateo declared a Local Health Emergency pursuant to Health and Safety Code Section 101080 due to the introduction of COVID-19 in San Mateo County.

March 31, 2020 County of San Mateo Public Health Officer issued a new order extending the "shelter in place" period through May 3, 2020, which was a complement to the indefinite statewide stay -at- home order issued by Governor Gavin Newsom earlier in March.

April 29, 2020 County of San Mateo Public Health Officer issued a new order (alongside the other Bay Area Health Officers) extending the shelter in place orders through May 31, 2020.

May 15, 2020 A revised order was issued, superseding the last order, bringing County of San Mateo into alignment with early Phase 2 of Governor Gavin Newsom’s Resilience Roadmap . The order maintained that all individuals continue to shelter in place and continues to restrict most activity, travel, and governmental and business functions to essential needs, outdoor activities, and outdoor businesses but adds additional businesses and activities to the list of permitted functions.

May 28, 2020 A revised order was issued with a few modifications to the previous order to allow places of worship to hold services and retail stores to allow customers inside. It also provided guidelines for additional activities such as car parades and protests.

June 4, 2020 A revised order was issued to allow outdoor dining and charter boat operations, as well as amending the guidelines for funerals.

June 17, 2020 The County of San Mateo Public Health Officer rescinded the shelter in place order and replaced it with the Safer Community Order. The Safer Community Order align ed County of San Mateo with the State’s Resilience Roadmap and limits gatherings to no more than 50 people, outline d social distancing and face covering requirements, allow ed for "social bubbles," and requir ed businesses to implement a social distancing protocol and written health and safety plans.

July 29, 2020 County of San Mateo was added to the state's monitoring list due to an increase in the rate of COVID-19 cases in the County and as a result, specific indoor businesses were required to cease operations starting August 2, unless they could be modified to operate outside or by pick-up.

August 28, 2020 County of San Mateo was placed in the purple tier rank or "widespread" county risk level under the State's new color-coded reopening system.

September 22, 2020 County of San Mateo moved to the red tier rank or "substantial" county risk level.

October 27, 2020 County of San Mateo moved to the orange tier rank or "moderate" county risk level.

November 17, 2020 As COVID-19 cases and hospitalizations surged and ICU capacity levels declined, County of San Mateo rolled back to the red tier rank or "substantial" county risk level.

November 29, 2020 County of San Mateo then rolled back to the purple tier rank or "widespread" county risk level.

November 30, 2020 A Limited Stay at Home order went into effect.

December 17, 2020 A Regional Stay at Home order then went into effect.

January 25, 2021 The Regional Stay at Home order ended and the County of San Mateo returned to the purple tier rank or “widespread” county risk level.

February 24, 2021 County of San Mateo moved into the red tier rank or "substantial" county risk level.

March 17, 2021 County of San Mateo moved into the orange tier rank or "moderate" county risk level. 299
April 2, 2021 The California Department of Public Health and the Centers for Disease Control and Prevention released updated guidance recommending delaying travel until persons are fully vaccinated.

Fully vaccinated travelers should follow CDC travel guidance and are not required to test or quarantine before or after travel unless they have symptoms concerning for COVID-19 disease.

April 6, 2021 Governor Gavin Newsom outlines the State’s next step in the COVID-19 pandemic recovery, moving beyond the Blueprint for a Safer Economy, and announces that on June 15, California will fully reopen if criteria are met.

April 15, 2021 The California Department of Public Health adjusted its Orange Tier 3 guidance for gatherings, private events and indoor seated live events and performances. O utdoor gathering size increases to 50 people. For private events or meetings such as receptions or conferences, outdoor gatherings are limited to 100 people. Indoor live events or performances are allowed with capacity limits and modifications including physical distancing, advance ticket purchases, designated areas for eating and drinking, and attendance limited to in-state visitors.

May 3, 2021 The California Department of Public Health provides updated guidance on use of face coverings, which essentially provides exceptions for those fully vaccinated in outdoor settings.

May 12, 2021 County of San Mateo moved into the yellow tier rank or "minimal" county risk level.

May 19, 2021 Bay Area Health Officers release statement in support of the California Department of Public Health’s strategy to continue with current masking guidance until June 15, when the State will align with the CDC’s updated masking guidance.

June 3, 2021 Bay Area Health Officers release statement in support the opening of California schools for full time in-person instruction for all grades in the fall of 2021.

June 15, 2021 State of California officially reopens and moves “Beyond the Blueprint” which ends the color- coded reopening tier systems and lifts most restrictions on businesses. Most County of San Mateo offices reopen in-person as well.

July 16, 2021 County of San Mateo Joins Bay Area Counties in recommending masking indoors as precaution against COVID-19, particularly the increased circulation of the Delta variant.

July 19, 2021 City of Foster City began hybrid in-person and virtual City Council meetings.

July 26, 2021 County of San Mateo announces face coverings are required solely at County -operated facilities.

July 26, 2021 City of Foster City reopened City Hall to the general public for walk-ins during regular business hours from 8:00 AM-5:00 PM, Monday to Friday.

July 29, 2021 City of Foster City announces face coverings are required at all times indoors when visiting City facilities.

August 3, 2021 County of San Mateo issues a health order requiring all individuals, regardless of vaccination status, to wear face coverings when indoors in public settings, with limited exceptions.

August 9, 2021 City of Foster City reopened Recreation Center and began offering indoor programs again.

August 26, 2021 Bay Area Health Officers release statement reaffirming support for full in-person school, given safety measures and flexibility for different approaches to meet the needs and capacities of a of schools and districts.

September 16, 2021 Governor Gavin Newsom signs Assembly Bill 361, as the provisions of Executive Order No. N- 29-20 (as revised by Executive Order No. N -08-21), which modifies the requirements for conducting meetings via teleconference during the COVID -19 pandemic, expire s on September 30, 2021. AB 361 amends the Brown Act to allow local legislative bodies to continue using teleconferencing and virtual meeting technology as long as there is a “proclaimed state of emergency” by the Governor and certain findings are made regarding the need to conduct teleconferenced meetings.

September 30, 2021 San Mateo County Health announces it will be launching Booster Clinics at the Event Center October 7, 2021 Bay Area Health Officers issue criteria for lifting COVID-19 indoor masking requirements to allow organizations to set those requirements independently.

October 18, 2021 City of Foster City/EMID adopts resolutions so the City Council/EMID Board, Planning Commission, and Committees may continue to conduct meetings as they have been without 300
interruption, allowing for increased accessibility to the public and meeting participants to join in person or via teleconference, as applicable, under AB 361.

December 1, 2021 The California Department of Public Health has published a fact sheet about the Omicron variant. County Health is working with the state to understand potential local impacts.

December 15, 2021 The California Department of Public Health has mandated that everyone in California wear a mask in indoor public spaces and workplaces. The order is in effect December 15, 2021 to January 15, 2022.

January 5, 2022 The California Department of Public Health announces the extension of its mask mandate. The order is in effect December 15, 2021 to February 15, 2022.

January 5, 2022 City of Foster City/EMID announces that City Council, Planning Commission, citizen advisory committees, and other public meetings will be held virtually for the months of January and February starting January 13, 2022.

February 16, 2022 Indoor masking is no longer required by the State or County, except for unvaccinated individuals. Everyone, regardless of vaccination status, must continue to mask indoors in high- risk settings, including public transportation, health care settings, congregate settings like correctional facilities and homeless shelters, long-term care facilities, and in K-12 schools and childcare settings.

March 7, 2022 The City Council returned to in-person hybrid public meetings.

March 14, 2022 Indoor masking is no longer required, though strongly encouraged, at City facilities.

April 6, 2022 California Department of Public Health updated is guidance so that masking in schools is no longer required, though strongly encouraged.

April 18, 2022 Federal j udge issues ruling that masks are no longer required on public transportation conveyances and at transportation hubs.

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Attachment 4

NOVEL CORONAVIRUS (COVID-19) RESPONSE PLAN SUMMARY
Last Update d: Wednes day, June 8 , 2022

OVERALL OBJECTIVE: To keep the community safe, reduce the risk of transmission, and help slow the spread novel Coronavirus (COVID -19)

OBJECTIVE ACTION ITEMS STATUS

TO MAINTAIN COMPLIANCE WITH PUBLIC

HEALTH ORDERS FROM THE COUNTY AND

STATE (SHELTER IN PLACE/STAY AT HOME)
Monitor the evolving COVID -19 situation and work closely with the County and neighboring jurisdictions
• Update Countywide Matrix with operational changes (Last Updated 03/18/20) • Participate in conference calls which includes Elected Officials, City Managers, City Attorneys, Public Safety (Daily Until 03/25/20; Monday, Wednesday, Friday Until 05/18/20; Wednesday & Friday Until 06/24 /20; Wednesday Until 10/21/20; Transitioned to Every 2 Wednesdays Until 06/09/21, Ending Thereafter) • Participate in Special Briefings which includes Elected Officials, City Managers, and Public Safety as needed (01/13/22)
• Nexus with City Attorney/County Counsel for Guidance (As Needed) • Update 211 Bay Area (a program of United Way Bay Area) with City Updates Ongoing
Work in alignment with SMC Fire (Member Agencies) to coordinate response • Proclamation of Local Emergency (City Manager/Director of Emergency Services Proclaimed on 03/16/20; City Council Ratified on 03/18/20 ; Extended on 04/06/20 , 06/01/20, 07/20/20, 09/08/20, 11/02/20, 01/04/21, 03/01/21, 05/17/21, 07/19/21 , 09/20/21, 11/15/21, 12/13/21, 01/18/22, 2/22/22, 3/21/22, 4/18/22, and 5/16/22 • Joint, Multiagency Emergency Operation Center (Activated on 03/16/20; Transitioned from Assigned Foster City Liaison to Multiple Staffed Positions; Transitioned to Virtual EOC on 05/11/20; Closed EOC on 05/29/20)
o Daily Emergency Action Plan (EAP) prepared and distributed by EOC o Daily Situation Status Report (SIT STAT) created and distributed by EOC Ongoing
Implement adjustments to City services and operations in response to Public Health Orders Ongoing 302

• Order No. c19-2, dated March 12, 2020
o Cancelled all non-essential meetings, events, and large gatherings through month of March
o Issued refunds for voluntary cancellations
o No longer accepted new facility reservation requests
o Implemented social distancin g measures for any upcoming, essential meetings
o Restricted non-essential travel for all employees
o Encouraged public to utilize City services available online, over-the -phone, and/or email
• Order No. c19-5, dated March 16, 2020
o City Facilities Closure through April 7, 2020, including park amenities such a playgrounds, restrooms, fenced/gated facilities
o Transitioned all future City Council and Planning Commission meetings to be conducted via teleconference/video conference
o Cancelled all classes and programs through April 7, 2020 o Transitioned employees to telework/remote
• Order No. c19-5b (Revised), dated March 31, 2020
o City Facilities Closure through May 3, 2020, including park amenities such a playgrounds, restrooms, fenced/gated facilities
o Extended limitations to recreational activity spaces, with only park pathways and open green space (nonathletic fields) remaining opening o Cancelled all non-essential meetings and events through May 3, 2020 o Issued stop work orders to cease all non -essential construction activity immediately
o Posted required Social Distancing Protocol and Signage • Health Recommendation (to Cover Face), dated April 2, 2020 o All essential workers on-site, in-field to follow same recommendations and be an example to the community by wearing appropriate coverings at all times • Order No. c19-8, dated April 17, 2020
o All employees to have face coverings at all times, when working with others and in are as that are frequented by your co -workers, including hallways, restrooms, stairways, lunch and break rooms, and other shared spaces. • Order No. c19-5c (Revised), dated April 29, 2020
o City Facilities Closure through May 31, 2020, including park amenities such a playgrounds, restrooms, fenced/gated facilities
o Cancelled all non-essential meetings and events through May 31, 2020 o Construction, landscaping and gardening work allowed to resume 303

o Posted required, updated Social Distancing Protocol and Signage o Developing phased reopening of City facilities based on evaluation of easing of restrictions within Order
• Order No. c19-5d (Revised), dated May 15, 2020
o Developed phased reopening of City facilities based on evaluation of easing of restrictions within Order , with outlined protocols and best practices on preventative measures, site- specific changes, reconfigurations, screening, cleaning/disinfecting, communication & posting, etc.
o Outdoor facilities with high -touch equipment or that en courage gathering must remain closed to public access. Such facilities include playgrounds, gym equipment, climbing walls, picnic areas, dog parks, spas, and barbecue areas. o Removal of previous order’s limit on travel for recreational activities to within 10 miles from home
• Order No. c19-8b (Revised), dated May 19, 2020
o All members of the public and workers to wear face coverings at all times • Order No. c19-5e (Revised), dated May 28, 2020
o Additional activities allowed, including places of worship, retail, car parades, and protests
o Reopened four (4) pickleball and two (9) tennis courts; implementing reservation system and active monitoring by City staff
o Cancelled all non-essential meetings and events through June 30, 2020 o Reevaluated all major City special events (such as Fourth of July, Summer Concerts, and Summer Days) and proposed plans for events in virtual, modified formats
• Order No. c19-5f (Revised), dated June 4, 2020
o Additional activities allowed, including outdoor dining, charter boat operations, and funerals
o Reopened beach parks, boat docks, two (2) walking tracks, and parking lots of all (except one) park sites
o Developed visitor protocols to provide guidance on requirements and expectations of those seeking in-person services, with outlined protocols and best practices on preventative measures, self -health assessments, face covering and social distance requirements, capacity levels, etc. o More employees reintroduced into the workplace; implementation of appointment scheduling software to allow in- person services beginning June 15, 2020
• Order No. c19-11, dated June 17, 2020
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o Limits gatherings to no more than 50 people, outlines social distancing and face covering requirements, allows for social bubbles of no more than 12, and requires businesses to implement a social distancing protocol and written health and safety plans
o Reopened all pickleball and tennis courts, as well as removed reservation system and active monitoring by City staff
o Reopened bocce ball courts and volleyball courts
o Reopened park restrooms at five (5) locations
o More employees to be reintroduced into the workplace; however reopening of all City facilities postponed until further notice
• County Added to State Monitoring List, July 29, 2020
o Shut down of certain industries or activities, unle ss modified to operate outside
o City temporarily suspends code enforcement actions against businesses such as salons/barbers, personal care services, gyms/fitness centers, and offices that are not currently permitted to provide outdoor operations o Skate park reopened on August 14, 2020
• County Ranked Purple in State’s New Color-Coded Reopening System, August 28, 2020 o Effective August 31, all retail and shopping centers can open at 25% capacity, and all hair salons and barbershops can resume indoor operations • County Ranked Red in State’s New Color -Coded Reopening System, September 22, 2020
o Restaurants indoors (max 25% capacity or 100 people, whichever is fewer) o All retail indoors (max 50% capacity)
o Shopping centers, swap meets indoors (max 50% capacity, closed common areas)
o Personal care services – hair and nail salons, barbershops (open with modifications)
o Museums, zoos and aquariums (max 25% capacity)
o Places of worship (max 25% capacity or 100 people, whichever is fewer) o Movie theaters in doors (max 25% capacity or 100 people) o Schools one step closer to reopening (only after two weeks in Tier 2/Red) • CA Department of Public Health New Guidance on Playgrounds and Outdoor Recreational Facilities, September 28, 2020
o Playgrounds, basketball courts, all park bathrooms, the Fitness Court, and the Skate Park to reopen, with restrictions, on October 8
o Parks staff preparing for reopening of amenities by sanitizing all playgrounds and removing fencing
305

• County Ranked Orange in State’s Color-Coded Reopening System, October 27, 2020 o Indoor family entertainment centers, outdoor bars and breweries not o serving food, indoor climbing walls and certain other businesses and activities to open with capacity restrictions
o Dine-in restaurants, movie theaters, places of worship and additional businesses can boost their indoor capacities as well
• Order No. c19-7c (Revised), dated October 29, 2020
o Updated orders for individuals who are close contacts of a positive case (for quarantine) or who have tested positive for COVID -19 (for isolation), along with instructions for home quarantine and home isolation o Specific rules applicable to health care workers and first responders • County Ranked Red in State’s Color-Coded Reopening System, November 17, 2020 o Restaurants indoors (max 25% capacity or 100 people, whichever is fewer) o All retail indoors (max 50% capacity)
o Shopping centers, swap meets indoors (max 50% capacity, closed common areas)
o Personal care services – hair and nail salons, barbershops (open with modifications)
o Museums, zoos and aquariums (max 25% capacity)
o Places of worship (max 25% capacity or 100 people, whichever is fewer) o Movie theaters in doors (max 25% capacity or 100 people, whichever is fewer) o Gyms and fitness centers indoors (max 10% capacity)
• County Ranked Purple in State’s Color-Coded Reopening System, November 29, 2020 and Limited Stay at Home Order, starting November 30, 2020 o Businesses and activities that may have been operating indoors – including places of worship, movie theaters, gyms and museums – must move outdoors or close.
o Shopping malls and all retail must operate at no more than 25 percent capacity.
o Prohibited resid ents from leaving their homes to gather with other households from 10 p.m. to 5 a.m.
• Regional Stay at Home Order, starting December 17, 2020 o Prohibits private gatherings of any size, except for outdoor church services and political demonstrations.
o Restaurants must stop offering in -person dining and can offer only take -out and delivery.
o Many businesses and activities must close, including salons and barbershops. o Retail can remain open at 20 percent capacity.
306

o Nonessential travel and the use of hotels or short -term rentals for leisure is banned.
• County Ranked Purple in State’s Color-Coded Reopening System, January 25, 2021 o Businesses and activities that may have been operating indoors – including places of worship, movie theaters, gyms and museums – must move outdoors or close.
o Shopping malls and all retail must operate at no more than 25 percent capacity.
• County Ranked Red in State’s Color-Coded Reopening System, February 24, 2021 o Restaurants indoors (max 25% capacity or 100 people, whichever is fewer) o All retail indoors (max 50% capacity)
o Shopping centers, swap meets indoors (max 50% capacity, closed common areas)
o Personal care services – hair and nail salons, barbershops (open with modifications)
o Museums, zoos and aquariums (max 25% capacity)
o Places of worship (max 25% capacity or 100 people, whichever is fewer) o Movie theaters in doors (max 25% capacity or 100 people, whichever is fewer) o Gyms and fitness centers indoors (max 10% capacity)
• County Ranked Orange in State’s Color-Coded Reopening System, March 17, 2021 o Restaurants indoors (max 50% capacity or 200 people, whichever is fewer) o All retail/shopping indoors (open with modifications, closed common areas and reduced capacity in food courts)
o Museums, zoos and aquariums (max 50% capacity)
o Places of worship (max 50% capacity or 200 people, whichever is fewer) o Movie theaters indoors (open with modifications)
o Gyms and fitness centers indoors (max 25% capacity, indoor pools and climbing walls open)
• CA Department of Public Health New Guidance on Travel, April 2, 2021 o CDPH and the CDC recommend delaying travel until persons are fully vaccinated. Fully vaccinated travelers should follow CDC travel guidance and are not required to test or quarantine before or after travel unless they have symptoms concerning for COVID-19 disease.
• Governor Gavin Newsom outlines the State’s next step in the COVID- 19 pandemic recovery, moving beyond the Blueprint for a Safer Economy, and announces that on June 15, California will fully reopen if criteria are met. • CA Department of Public Health New Guidance on Gatherings and Live Events, April 15, 2021
307

o For the Orange Tier starting on April 15, outdoor gathering size increases to 50 people.
o For private events or meetings such as receptions or conferences, outdoor gatherings are limited to 100 people.
o Indoor live events or performances are allowed with capacity limits and modifications including physical distancing, advance ticket purchases, designated areas for eating and drinking, and attendance limited to in -state visitors.
• CA Department of Public Health New Guidance on Use of Face Coverings, May 3, 2021 o For fully vaccinated persons, face coverings are not required outdoors except when attending crowded outdoor events, such as live performances, parades, fairs, festivals, sports events, or other similar settings. o For unvaccinated persons, face coverings are required outdoors any time physical distancing cannot be maintained, including when attending crowded outdoor events, such as live performances, parades, fairs, festivals, sports events, or other similar settings.
o In indoor settings outside of one's home, including public transportation, face coverings continue to be required regardless of vaccination status, except as outlined below.
• County Ranked Yellow in State’s Color-Coded Reopening System, May 12, 2021 o Allows expanded capacity at restaurants, gyms, movie theaters, indoor businesses and a host of other operations.
o Bars that do not serve food can reopen indoors with a maximum capacity of 25 percent or 100 people, whichever is fewer.
• California officially reopens and moves “ Beyond the Bluep rint,” which ends the the color-coded reopening tier systems and lifts most restrictions on businesses. The County of San Mateo fully aligns with all state COVID -19 health and safety guidelines and has no plans to impose separate guidance.
o Most County of San Mateo offices opened to the public on June 15, 2021. o City of Foster City reopens Council Chambers and begins hybrid in-person and virtual City Council meetings on July 19, 2021.
o City of Foster City reopens City Hall to general public for walk -ins during regular business hours from 8:00 AM-5:00 PM, Monday to Friday, on July 26, 2021.
o City of Foster City reopens Recreation Center and begins offering indoor programs again on August 9, 2021.
• Order No. c19-12, dated August 3, 2021
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o Directs that face coverings shall be worn, regardless of vaccination status, over the mouth and nose, in all indoor public settings, venues, gatherings, and workplaces, such as, but not limited to: offices, retail stores, restaurants and bars, theaters, family entertainment centers, conference centers and government offices serving the public.
• Governor Gavin Newsom signs Assembly Bill 361 on September 16, 2021, as the provisions of Executive Order No. N- 29-20 (as revised by Executive Order No. N -08- 21), which modifies the requirements for conduct ing meetings via teleconference during the COVID-19 pandemic, expires on September 30, 2021. • County Health issues criteria for lifting COVID -19 indoor masking requirements to allow organizations to set those requirements independently , when all of the following are achieved, October 7, 2021:
o The rate of COVID-19 transmission reaches the “moderate” or yellow tier and remains there for at least three weeks; AND
o The number of people hospitalized for COVID -19 is low and stable in the judgement of local health officials; AND
o The percent of the total population that is fully vaccinated – two doses of Pfizer or Moderna or one dose of Johnson & Johnson – reaches 80 percent OR eight weeks have passed since a COVID -19 vaccine has been authorized for emergency use by federal and state authorities for 5- to 11-year-olds. • CA Department of Public Health Statewide Mandate on Masks, December 15, 2021 o Requiring masks to be worn in all indoor public settings, irrespective of vaccine status, until February 15, 2022
• In alignment with the State, San Mateo County will rescind indoor mask requirements effective February 16, 2022 . Unvaccinated individuals will still be required to mask indoors. Everyone, regardless of vaccination status, will be required to mask indoors in high-risk settings, including public transportation, health care settings, congregate settings like correctional facilities and homeless shelters, long-term care facilities, and in K-12 schools and childcare settings.
o City of Foster City reopens Council Chambers and returns to hybrid in-person and virtual City Council meetings on March 7, 2022.
o Indoor masking, though strongly encouraged, is no longer required at City facilities effective March 14, 2022.
• On April 6, 2022, the California Department of Public Health updated its guidance so that masking is no longer required in schools, though strongly encouraged. • On April 18, f ederal judge issues ruling that masks are no longer required on transportation conveyances and at transportation hubs.

309

OBJECTIVE ACTION ITEMS STATUS

TO P ROVIDE ESSENTIAL SERVICES AND

CONTINUITY OF CITY OPERATIONS WITH

MINIMAL DISRUPTION (TO EXTENT

POSSIBLE)
Implement Continuity of Operations/Government (COOP/COG) Plans • Identify essential services; includes public safety, water and wastewater, critical infrastructure maintenance, etc. (Detailed by Department in Separate Document) • Identify essential workers and establish staffing levels necessary to carry out essential functions (Detailed by Department in Separate Document) Ongoing; Changes
with Progress
Establish and coordinate COVID-19 Response Team
• Includes Department Heads and 1-2 Essential Employees from Each Department • Centralized Point of Contact with Joint, Multiagency Emergency Operations Center • Check-In Meetings (Transitioned from Weekly, to Biweekly, and to As Needed) • After Action Debrief Meeting on 06/24/20
Ongoing
Establish and coordinate COVID-19 Return to Work Taskforce • Organized by City Manager and Human Resources Departments, and Includes 1 -2 Employees from Each Department
• Developed ‘Employee Return to Work’ Policy as well as Visitor Policy & Protocols • Developed ‘Adaptable Work Schedule Program’
Ongoing

OBJECTIVE ACTION ITEMS STATUS

TO EFFECTIVELY COMMUNICATE,

EDUCATE, AND INFORM THE COMMUNITY
Provide reliable information to the community that is uniform and consistent with the County & State guidelines
• Participate in PIO conference calls
• Share information as released by County in an effort to centralize resources • Coordinate messaging with SMC Fire (Member Agencies) for consistency • Create landing page of COVID -19 general information on City website – https://www.fostercity.org/covid19
• Create landing page of COVID-19 available City services online and by appointment on City website – https://www.fostercity.org/citymanager/page/citywide-services • Create landing page of COVID -19 response/programs on City website – https://www.fostercity.org/citymanager/page/foster-city-covid-19-response • Create landin g page of COVID -19 business resources on City website – https://www.fostercity.org/citymanager/page/covid-19-business-resources • Enable alert on top header of City website with latest City update on COVID-19 • Enable spotlight on City website main page directing to COVID-19 landing page Ongoing
Provide messaging that increases public awareness of mandatory precautionary measures and available resources for the community
• Signage –
o City Facilities Closures – Posted at Building Entrances, Gated Park Facilities, Playgrounds, Bathrooms, etc.

Ongoing
310

o Electronic Board (for Social Distancing) – Placed on Levee Pedway o Chalk Markings (for Social Distancing) – 6 Feet Markers on Levee Pedway o Metal Signage (for Social Distancing) – Posted Along Levee Pedway o City Facilities Requirements – Face Coverings, Social Distancing Guidelines/Floor Markers, Limited Capacity in Common Spaces, etc. • FCTV Bulletin – Updated with COVID-19 Information
• Electronic Marquee – Updated with COVID-19 Information • Press Releases –
o March 11, 2020
o March 13, 2020
o March 15, 2020
o March 16, 2020
o April 3, 2020
o April 8, 2020
o April 22, 2020
o April 23, 2020
o April 30, 2020
o May 27, 2020
o June 3, 2020
o October 7, 2020
o June 2, 2021
o June 17, 2021
o July 16, 2021
o July 28, 2021
o October 28, 2021
o January 5, 2022
o February 18, 2022
o March 8, 2022
• Videos/Public Service Announcements –
o Letter from Mayor (Released 03/18/20)
o Video from Mayor (Released 03/26/20)
o Letter from Mayor (Released 03/31/20)
o Joint PSA with SMC Fire Member Agencies (Released on 04/10/20) o COVID-19 Relief Program (Released 05/14/20)
o Summer Safety Message from City Council (Released 06/04/20) o Congratulations to Class of 2020 (Released on 06/09/20) o Visit City Hall Online (Released 07/01/20)
o Submit Permits Online (Released 07/01/20)
311

o Wear a Mask (Released 08/11/20)
• E-Newsletter/Weekly City Update –
o March 26, 2020
o April 1, 2020
o April 10, 2020
o April 16, 2020
o April 23, 2020
o May 1, 2020
o May 7, 2020
o May 14, 2020
o May 21, 2020
o May 28, 2020
o June 4, 2020
o June 11, 2020
o June 18, 2020
o June 25, 2020
o July 1, 2020
o July 9, 2020
o July 16, 2020
o July 23, 2020
o July 30, 2020
o August 6, 2020
o August 13, 2020
o August 20, 2020
o August 27, 2020
o September 3, 2020
o September 10, 2020
o September 17, 2020
o September 24, 2020
o October 1, 2020
o October 8, 2020
o October 15, 2020
o October 22, 2020
o October 29, 2020
o November 5, 2020
o November 12, 2020
o November 19, 2020
o November 26, 2020
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o December 3, 2020
o December 10, 2020
o December 16, 2020
o December 31, 2020
o January 7, 2021
o January 15, 2021
o January 21, 2021
o January 28, 2021
o February 4, 2021
o February 11, 2021
o February 18, 2021
o February 25, 2021
o March 4, 2021
o March 11, 2021
o March 18, 2021
o March 25, 2021
o April 1, 2021
o April 8, 2021
o April 15, 2021
o April 22, 2021
o April 29, 2021
o May 6, 2021
o May 13, 2021
o May 20, 2021
o May 27, 2021
o June 3, 2021
o June 10, 2021
o June 17, 2021
o June 24, 2021
o July 1, 2021
o July 8, 2021
o July 15, 2021
o July 22, 2021
o July 29, 2021
o August 5, 2021
o August 12, 2021
o August 19, 2021
o August 26, 2021
313

o September 2, 2021
o September 9, 2021
o September 16, 2021
o September 23, 2021
o September 30, 2021
o October 7, 2021
o October 14, 2021
o October 21, 2021
o October 28, 2021
o November 4, 2021
o November 10, 2021
o November 18, 2021
o November 24, 2021
o December 2, 2021
o December 9, 2021
o December 16, 2021
o December 22, 2021
o December 29, 2021
o January 13, 2022
o January 27, 2022
o February 10, 2022
o February 24, 2022
o March 10, 2022
o March 24, 2022
o April 14, 2022
o April 28, 2022
o May 12, 2022
• Recology Billing Mailer –
o June: “We’re in this together, Foster City! Thank you for helping slow the spread of COVID-19. Practice social distancing of at least 6 feet, wear a face covering, and wash your hands frequently. Follow Foster City news and updates at www.fostercity.org/covid19.”
o August: Flyer – “It’s up to all of us, Foster City”
Participate in opportunities for community education whenever possible • City Manager provided COVID-19 update to Rotary Club on 03/25/20 (via Zoom) • Patrol Officers to educate public whenever responding to/enforcing violation reports • Police Chief to host Community Connect/FCPD Virtual Station Tour/Live Q&A event on 04/16/20 (via Facebook Live)
Ongoing
314

• City Manager and Mayor provided update to Foster City Village on 03/23/21 (via Zoom)
• Partnered with Congresswoman Speier to host a week-long “In America: Remember” exhibit honoring San Mateo County residents who died of COVID-19 from 11/07/21 to 11/14/21

OBJECTIVE ACTION ITEMS STATUS

TO SUPPORT NEEDS OF VULNERABLE/AT-

RISK POPULATIONS, MOBILIZING

COMMUNITY-BASED ORGANIZATIONS,

NON-PROFITS, AND PRIVATE SECTOR
Work in partnership with community-based organizations and/or non-profits to help support needs of at-risk populations
• Volunteers at-Large: Direct all volunteer inquiries to County for centralized deployment system – https://www.surveymonkey.com/r/WSXH6PZ • Senior Services:
o Rotary Club Senior Meals Program – Generally, first and third Tuesday of the month; however, suspended until further notice as they have a highly social aspect to them.
o Foster City Village – A ctively conducting Meals on Wheels (Mon day-Friday), providing transportation to urgent medical appointments, picking up prescriptions, and conducting their “We Care” program where FCV volunteers make phone calls to their members as a friendly, supportive check in o Foster City Village – City Council allocated $5,000 on 04/06/20 to help provide protective supply purchases, grocery b ag deliveries, food distributions, and gasoline cards for volunteer drivers. These measures will help with additional expenses incurred by the Village as they continue operations while protecting our seniors during the pandemic.
o Senior Shopping Hours – Foster City Safeway (Tuesdays and Thursdays from 6:00 AM-9:00 AM), Target at Bridgepointe (Tuesdays and Wednesdays from 8:00 AM-9:00 AM), Lucky Supermarkets (Tuesdays and Thursdays from 6:00 AM-9:00 AM), Costco (Tuesdays and Thursdays from 8:00 AM-9:00 AM), Ranch 99 (every weekday from 8:00 AM-9:00 AM), and Trader Joe's (daily from 9:00 AM-10:00 AM)
o Foster City Village – Comfort Care Meal Delivery Program for 20 Weeks (01/28/21 to 06/10/21) includes one weekly meal prepared by rotating Foster City restaurants and hand-delivered by volunteer cadre (including Foster City staff)
• Food Distribution:
o Second Harvest Food Bank – Pre-boxed meals distribution to take place the first and third Friday at 9:00 AM/9:30 AM at the Recreation Center parking lot, in a drive-up fashion
Ongoing
315

o SMFC School District Food Program – Free meal program, grab and go style breakfast and lunch meals, available for all kids and teens 18 and under at Foster City Elementary School. City Council approved allocation of $10,000 on 05/11/20 to help costs of expanding this program. [ENDED] o Great Plates Program – Delivering meals to older adults who are at heightened risk and are unable to obtain or prepare meals on their own while sheltering in place [ENDED]
o Impossible Market pilot program, not to exceed $5,000, to introduce food & grocery subscription subsidy for 100 financially-impacted Foster City families approved by City Council on 11/02/20 [DISCONTINUED]
• Students/Distance Learning:
o SMFC Education Foundation – City Council approved allocation of $10,000 to help supplement costs of hot spots and internet access to carry out distance learning programs.

Collaborate with the County, SAMCEDA, and Foster City Chamber of Commerce to understand impacts of COVID-19 on businesses and develop financial assistance programs that can offer immediate relief as needed
• Issued survey to businesses to better understand e conomic impacts of COVID -19 – https://www.surveymonkey.com/r/BXH6H86
• Built Business Resources Page on City website that includes latest updates – https://www.fostercity.org/citymanager/page/covid-19-business-resources • Built directory of businesses open/available for delivery or pick -up – https://local.fostercity.org/
• Help promote San Mateo County Strong Fund, donation f und to help residents, nonprofit organizations and small businesses – https://www.smcstrong.org/ • Evaluated U.S. Senate Bill S.3548 - Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and an informational report was provided to the City Council on 04/06/20. • Developed Small Businesses Resiliency Grant Program to support operations and help avert layoffs during the COVID-19 public health emergency. $500,000 (allocated for a grant of $10,000 per business for up to 50 businesses ) approved by City Council on 04/06/20.
• Expanded Support Local Foster City Campaign to provide vouchers through the Support Local Stamp Me app, allowing customers to get take-out during the shelter in place order. $25,000 (allocated for $10 vouchers to be offered to all Stamp Me users) approved by City Council on 04/06/20.
• Consider options f or Moratorium on Commercial Evictions (TBD; County covers unincorporated areas only)
Ongoing
316

• Participated in Chamber of Commerce “Chamber Cares Initiative” Weekly Meeting re:

COVID-19 Impacts on Non-Profits 06/16/20
• Outdoor dining temporarily allowed for restaurants looking to provide outdoor dining service and suspend ed Code Enforcement a ctions approved by City Council on 07/06/20
• Prepared and distributed approximately (100) Rethink, Reopen, Restart Kits to storefront businesses in shopping centers to support reopening efforts • Outdoor services temporarily allowed for businesses such as salons/barbers, personal care services, gyms/fitness centers, and offices , and suspended Code Enforcement actions approved by City Council on 07/31/20
• Terms of a Revolving Business Loan Program (Approved by City Council on 09/28/20); Establishment of RBLP (Approved by City Council on 11/02/20, then decision to defer thereafter on 03/15/21)
• Analysis of waiving or deferring permit fees and business license fees for one year to prioritize commercial spaces for waiving of permit fees (Direction initially provided by City Council on 11/02/20, then decision to not pursue further thereafter on 03/15/21) • Expanded Support Local Foster City Campaign to provide vouchers through the Support Local Stamp Me app, allowing customers to get take-out during the shelter in place order. Additional $25,000 (allocated for $10 vouchers to be offered to all Stamp Me users) approved by City Council on 11/16/20.
• Helped promote Restaurant, Brewery & Winery Relief, relief f und to help small business impacted by the pandemic – https://www.smcstrong.org/restaurantrelief • Partnered with the Chamber of Commerce to distribute two surveys – Business Needs and Shopper Preferences, which was open between 03/11/21 -03/11/21; findings received and accepted by City Council on 04/19/21
• Small Business Assistance Plan presented to City Council on 05/17/21 and on 06/21/21 • Helped promote living!LOCAL Holiday Marketplace by Chamber of Commerce to highlight local goods and services, and benefitting both shoppers and family -run businesses – https://www.whimlocal.com/event/livinglocal/feed • Helped promote Microfood Business Grant Program to help microfood businesses that have not received assistance from the County COVID -19-relief programs in the past 12 months – https://www.smcstrong.org/archivedapplyforfunding Continue dialogue with hotels to understand impacts of COVID-19 on occupancy and consider use of hotels as alternative care facilities
• Connected Nathan Tsai (owner of Crowne Plaza and Towne Place Suites) with County Manager Mike Callagy regarding 650 rooms available
Ongoing
Address risks of homelessness and/or displacement Passed on 03/24/20;
317

• Countywide eviction moratorium ordinance; resolution adopting an Emergency Regulation, Pursuant to Section 8634 of the Government Code and Chapter 2.46 of the San Mateo County Ordinance Code, establishing a temporary, countywide moratorium on eviction for non -payment of rent by residential tenants directly impacted by the COVID -19 pandemic; extended through July 28 , 2020 by Board of Supervisors on 06/23/20
• Temporary countywide eviction moratorium for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic through August 31 and extended the time period in which delayed payments shall be made; amendment to Emergency Regulation approved by Board of Supervisors on 08/04/20 • Allocation of $1 million to the San Mateo County Emergency Financial Assistance Program (ERAP) and continued outreach for the state Emergency Rental Assistance Program to help residents impacted by COVID -19. Eligible applicants include renters/tenants those who have experienced financial hardship due to COVID -19, have past due rent o r utilities, and have a household income that is not more than 80% of the area median income, as well as property owners/landlords with income - eligible renters. Approved by Board of Supervisors on 06/29/21 06/23/20;
08/04/20
Support mental wellness/wellbeing of the Foster City Community • Promote and expand on Virtual Recreation and Resource Center to keep community engaged and active – https://www.fostercity.org/parksrec/page/virtual-r ecreation- and-resource-center
• Promoted San Mateo County Psychological Association (SMCPA) Virtual Town Halls (04/05/20 and 04/09/20)
• Participated in ‘Thank You Event’ at San Mateo Medical Center with SMC Fire Member Agencies, Public Safety Personnel, City Staff, and Legislative Officials (05/04/20) Ongoing
Build out database for Countywide Community Evacuation Int erface to support mass shelter in place and assist with information sharing – https://community.zonehaven.com/ • Assigned liaison to support data needs, provide resources, and update map Ongoing

OBJECTIVE ACTION ITEMS STATUS

TO FOSTER A SAFE WORKPLACE AND

ENABLE THE EMPLOYEE BASE TO

PERFORM
Scale workforce to essential functions only and transition employees to telework/remote to extent possible
• Distributed Teleworking Policy and Form to all employees (March 2020 and December 2020)
• Staffing levels/schedule established on a weekly/monthly basis (dependent on department)
Ongoing
318

• Provided regular updates to all employees via City Manager and Human Resources (issued 11 internal memos to -date) and Management Team Meeting (on 05/27/20) and All-Hands Meeting (on 05/28/20, 07/29/20, and 12/15/20) • Provided regular updates to City staff via bimonthly City Manager update “The Bulletin” (First and Third Fridays of Each Month); transitioning to monthly updates in 2021
• Shared information on Families First Coronavirus Response Act • Provided tools for all employees to effectively work remotely (with IT Assistance); includes equipment issuance, tele/video conferencing tools such as Microsoft Teams and Zoom, and web -based Employee Resource Page –
https://www.fostercity.org/employees
• Established ‘Return to Work Taskforce ’ and Developed ‘Employee Return to Work’ Policy
• Developed ‘Adaptable Work Schedule Program’
Ensure safety of front-line/essential personnel, i.e. first responders • Ensure personnel are equipped with PPE and are able to minimize in -person interactions whenever possible (reduced access to Police & Fire Departments, alternate teams/shifts, etc.)
• Provide accommodations for quarantining/isolation by coordinating with County EOC • Provide resources to COVID -19 testing if needed through https://verily.com/ or https://www.projectbaseline.com/study/covid-19/
• Provide childcare options for front -line/essential personnel, i.e. first responders – https://sanmateo4cs.org/
o Shared survey to gather information and better assess needs jurisdiction – https://www.surveymonkey.com/r/SMC_COVID19_childcare
• Implemented self-health assessment/screening requirement at entry points; including installation of thermal scanners at City Hall and Police Department • Posted required Social Distancing Protocol and Signage at City facility entrances and share information with all employees
• Informed all employees of Face Covering Requirement; providing supply of masks if necessary
• Departments coordinating with ‘Return to Work Taskforce’ for site- specific modifications/adaptations (including spacing and health/sneeze guards) ; as well as visitor safety protocols
• Acquired donation of ~5,000 cloth face coverings through U.S. Conference of Mayors ‘Masks for Mayors Initiative’
• Sanitation station/supplies set up in various locations throughout City facilities • Acquiring COVID-19 at-home/self-test kits through County for public safety personnel Ongoing
319

OBJECTIVE ACTION ITEMS STATUS

TO PROVIDE LONG -TERM STRATEGIC
PLANNING IN RESPONSE TO COVID -19

AND POTENTIAL IMPACTS TO CITY

OPERATIONS
Continue to monitor and work with the County to understand trajectory of COVID-19 and how it may impact City operations and needs of the community • Modeling data will be used a basis to prepare for contingencies where needed and to prepare for reopening of economy/transition to normal operations through phased approach
• Assigned representative to County’s Long-Term Strategic Planning Taskforce • Created ‘Return to Work Taskforce’ to develop policy/strategy for reopening City facilities; as well as policy/safety protocols for visitors & members of the public • Created ‘Parks Reopening Taskforce’ to develop policy/strategy for reopening park facilities
• Overview of San Mateo County Recovery Initiative presented to City Council on 10/05/20 and report accepted by Board of Supervisors on 10/06/20 Ongoing
Evaluate and consider additional actions that are recommended or may be required dependent on outcome/progression of COVID-19 situation; including (but not limited to):
• Extension of City Facilities Closure (TBD; Based on Public Health Order and Until Further Notice)
• Suspend or Freeze Shut -Offs/Disconnection of Water Service for Non -Payment (Currently in Effect)
• Waiver of Credit Card Fees for Online Payment of Utilities Through June 30, 2020 (Approved by City Council on 04/06/20)
• Explore Feasibility of Charging Tier 1 Rates for Water Service (No Longer Pursuing Due to Minor Cost Difference)
• Developed Small Businesses Resiliency Grant Program to support operations and help avert layoffs during the COVID-19 public health emergency. $500,000 (allocated for a grant of $10,000 per business for up to 50 businesses) approved by City Council on 04/06/20.
• Expanded Support Local Foster City Campaign to provide vouchers through the Support Local Stamp Me app, allowing customers to get take-out during the shelter in place order. $25,000 (allocated for $10 vouchers to be offered to all Stamp Me users) approved by City Council on 04/06/20.
• Consider Options for Moratorium on Commercial E victions (TBD; County covers unincorporated areas only)
• Freeze Hiring/New Recruitments and Filling of Vacant Positions (Currently in Effect) • Initiated Friendly Streets, Foster City Initiative, dedicating approximately a 1.75 mile stretch of road on northbound Beach Park Boulevard for bicyclists and runners. One lane will be barricaded off from cars to allow bicyclists and runners to safely use the Ongoing
320

designated detour. In parallel with the detour, this stretch of Levee Pedway is reserved for walking only. (Approved by City Council on 04/06/20) [DISCONTINUED] • Expanded Friendly Streets, Foster City Initiative to extend lane closure on Beach Park Boulevard from Teal Street to Gull Avenue ( Approved by City Council on 05/11/20) [DISCONTINUED]
• Allocated $20,000 total ($10,000 each) to the San Mateo- Foster City Elementary School District /Community Education Foundation for its Free Meal Program and Mobile Hotspot/Wi-Fi for Distance Learning (Approved by City Council on 05/11/20) • COVID-19 Recovery Planning Update provided at City Council Vision & Policy Summit (on 06/04/20)
• Outdoor Dining Temporarily Allowed for Restaurants Looking to Provide Outdoor Dining Service and Suspen ded Code Enforcement Actions (Approved by City Council on 07/06/20)
• Prepared and distributed approximately (100) Rethink, Reopen, Restart Kits to storefront businesses in shopping centers to support reopening efforts • Outdoor Services Temporarily Allowed for Businesses (such as salons/barbers, personal care services, gyms/fitness centers, and offices) and Suspended Code Enforcement Actions (Approved by City Council on 07/31/20) • Terms of a Revolving Business Loan Program (Approved by City Council on 09/28/20); Establishment of RBLP (Approved by City Council on 11/02/20, then decision to defer thereafter on 03/15/21)
• Analysis of waiving or deferring permit fees and business license fees for one year to prioritize commercial spaces for waiving of permit fees (Direction initially provided by City Council on 11/02/20, then decision to not pursue further thereafter on 03/15/21) • Impossible Market pilot program, not to exceed $5,000, to introduce food & grocery subscription subsidy for 100 financially-impacted Foster City families approved by City Council on 11/02/20 [DISCONTINUED]
• Expanded Support Local Foster City Campaign to provide vouchers through the Support Local Stamp Me app, allowing customers to get take-out during the shelter in place order. Additional $25,000 (allocated for $10 vouchers to be offered to all Stamp Me users) approved by City Council on 11/16/20.
• Helped promote Restaurant, Brewery & Winery Relief, relief fund to help small business impacted by the pandemic – https://www.smcstrong.org/restaurantrelief

• Partnered with the Chamber of Commerce to distribute two surveys – Business Needs and Shopper Preferences, which was open between 03/11/21 -03/11/21; findings received and accepted by City Council on 04/19/21
• Small Business Assistance Plan presented to City Council on 05/17/21 and on 06/21/21 321

Monitor revenue impacts , e xplore options for expenditure reductions , and seek financial assistance/opportunities for cost recovery of funds
• Track damage estimates and expenditures related to COVID-19 • Log personnel time on Form 214s in relation to COVID-19 incident response • Submit “Request for Public Assistance” through California Governor's Office of Emergency Services (Cal OES) Recovery Section for F ederal Emergency Management Agency’s (FEMA's) Public Assistance Program (Submitted on 04/02/20) • Seek approval of the “Designation of Applicant's Agent R esolution for Non -State Agencies” for the Purpose of Cost Recovery Eligibility (Approved by City Council on 04/06/20)
• Discussed City financial impacts related to COVID-19 (04/20/20 City Council Meeting) • Discussed p rojected financial impacts of COVID -19 bey ond the current fiscal year (05/11/20 Budget Study Session)
• Hired MGT Consulting for consultant services for COVID-19 CARES/FEMA Disaster Cost Recovery (08/24/20)
• Quarterly updates on City’s economic performance and impacts related to COVID-19, including s trategies to close long -term structural deficit (09/08/20 City Council Meeting)
Ongoing

322
DATE: June 20, 2022

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

VIA: Edmund Suen, Interim City/District Manager

FROM: Maria Saguisag-Sid, Human Resources Director

SUBJECT: ADOPTING THE NEW JOB CLASSIFICATIONS OF HOUSING

COORDINATOR AND IRRIGATION TECHNICIAN

RECOMMENDATION
It is recommended that the City Council/Estero Municipal Improvement District Board of Directors (hereinafter referred to as "City Council") adopt the attached resolutions approving the new job classifications of Housing Coordinator and Irrigation Technician.

EXECUTIVE SUMMARY
The City Council has adopted a job classification plan that consists of a series of job classifications with associated distinguishing characteristics, examples of duties, statements of required knowledge, skills and abilities, and minimum qualifications. The City periodically updates and/or adds to this list of job classifications to address organizational changes, changes in job requirements, and/or changes in required duties.

The Interim City Manager along with staff continues to make adjustments to staffing levels and positions to ensure the organization is able to focus on City Council goals and meet the needs of the Foster City community. Two new positions were recommended to meet such needs during the budget 323
process. As such, staff is recommending approval of the new job classifications of Housing Coordinator and Irrigation Technician to address ongoing Community Development programs and Parks Maintenance efforts.

BACKGROUND/ANALYSIS
As part of the budget preparation process, the City Manager annually reviews with the respective Executive Team members their recommendations of staffing needs to ensure departments are properly staffed to provide an exceptional level of programs and services to the Foster City community. For Fiscal Year 2022-2023, two new classifications were identified and recommended for City Council approval.

Housing Coordinator
Currently, the City’s below market rate (BMR) housing programs are administered through contract services. The current consultant working on the BMR housing program has notified the City of their intent to end service within the upcoming fiscal year. Based on the projected volume of work and ongoing changes related to numerous BMR housing programs, the Community Development Director has determined that a dedicated full-time regular position is needed. This position would also support the City's recently purchased 22 workforce housing units. To continue to provide the service level expected by the City Council and community, the Community Development Department will need a full-time Housing Coordinator to manage the City’s BMR housing programs, as well as to support the City’s long and short-term housing goals.

Irrigation Technician
Water conservation efforts, rising water costs, and aging irrigation systems are requiring Park Maintenance staff to allocate a significant amount of time and effort to addressing these issues. The Parks Maintenance staff recently installed new smart controllers to implement water conservation efforts. These smart controllers require specialized knowledge and skill to manage and maintain on an ongoing basis to ensure irrigation is effective as well as efficient in conserving water. In order to address these issues and provide dedicated support to the new irrigation smart controller system, staff has requested a new full-time Irrigation Technician position. The Irrigation Technician will be responsible for the City's irrigation and watering systems, implementing practices to reduce errors, ensure uniformity for scheduling, and demonstrate the department’s commitment to efficient water management. The addition of an Irrigation Technician would allow for 324
monitoring of water usage more closely in all parks, medians, cul-de-sacs as well as act as an inspector when City irrigation systems conflict with other projects.

To address these specific needs, staff is requesting the City Council adopt these two new classifications (Attachment 3 and 4). Upon adoption of the new classifications, Human Resources will coordinate with the respective departments to initiate the recruitment process. Staff will continue to review and monitor the staffing needs of the organization and will bring recommendations to the City Council as needed.

FISCAL IMPACT
These new positions are included in the proposed budget for FY 2022-2023, so there is no current fiscal impact. The recommended monthly salaries are listed below and will be recommended for approval in the FY 2022-2023 Pay Plan.

Position Step 1 Step 2 Step 3 Step 4 Step 5
Housing
Coordinator
$8,606 $9,037 $9,488 $9,963 $10,461
Irrigation Technician $6,825 $7,166 $7,524 $7,901 $8,296

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This action is consistent with the City Council’s "Staff Empowerment and Operational Excellence" Value/Priority Area as this action will support the organization's efficient and effective staffing. It is consistent with the City Council’s social equity goals in that it aligns the new duties with the proper classification level.

Attachments:
Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Attachment 3 - Housing Coordinator Job Classification
Attachment 4 - Irrigation Technician Job Classification 325
RESOLUTION NO.___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ADDING

THE JOB CLASSIFICATIONS OF HOUSING COORDINATOR AND IRRIGATION

SPECIALIST

CITY OF FOSTER CITY
WHEREAS, the City has adopted a classification plan of job class titles with associated distinguishing characteristics, examples of duties, statements of desired knowledge, skills and abilities and minimum qualifications for each class; and WHEREAS, there is a need to periodically evaluate and revise the requirements of those classes; and
WHEREAS, the Interim City Manager, in consultation with the Human Resources Director, Community Development Director and Parks Manager have determined a need for the job classifications of Housing Coordinator and Irrigation Technician; and WHEREAS, these job classifications require adoption by the City Council in order to fill the positions.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby approve the addition of the Housing Coordinator and Irrigation Technician job classifications attached as Exhibit A effective July 1, 2022.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
326
RESOLUTION NO.___________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ADDING THE JOB CLASSIFICATIONS OF HOUSING

COORDINATOR AND IRRIGATION SPECIALIST

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the District has adopted a classification plan of job class titles with associated distinguishing characteristics, examples of duties, statements of desired knowledge, skills and abilities and minimum qualifications for each class; and WHEREAS, there is a need to periodically evaluate and revise the requirements of those classes; and
WHEREAS, the Interim District Manager, in consultation with the Human Resources Director, Community Development Director and Parks Manager have determined a need for the job classifications of Housing Coordinator and Irrigation Technician; and
WHEREAS, these job classifications require adoption by the Board of Directors in order to fill the positions.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby approve the addition of the Housing Coordinator and Irrigation Technician job classifications attached as Exhibit A effective July 1, 2022.

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 20th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY
327
June 2022
FLSA: NON-EXEMPT

HOUSING COORDINATOR

DEFINITION
Under general direction, performs a variety of work related to the City’s affordable housing programs, including day-to-day coordination, and quality control of assigned functions such as eligibility, inspections, new leases, reexaminations, terminations, and property maintenance; and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from assigned supervisory or management personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS
This is a specialized professional classification responsible for day-to-day coordination of the City’s affordable housing programs. Incumbents at this level are capable of performing difficult and complex duties and are required to be fully knowledgeable in all procedures related to assigned areas of responsibility. Considerable independent judgment is used to make decisions in carrying out assignments.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
Oversees Existing Unit Purchase Program; authorizes payment of invoices for repairs, appliance purchases, and property maintainance; audits the Property Status Report; tracks and relays rental income; tracks repairs and purchases; coordinates repair work; seeks rental and utillity assistance for landlords on behalf of tenants); provides direction on tenant evictions and rental increases/decreases; develops and provides financial reports to Finance Department; drafts program policies, contract agreements, and memos.
Oversees Below Market Rate Housing Program; reviews annual and semi-annual property status reports from Community/Property Managers of all housing developments with BMR units; responds to calls, emails, counter inquiries, and requests from Community/Property Managers, tenants, staff, and the general public regarding qualifications, violations, housing discrimination, compliance, occupancy requirements, income projections, waitlist process, preference categories; drafts compliance/non- compliance reports and memos.
Answers questions, explains rules and regulations, resolves problems, and receives and investigates complaints; may resolve property services issues that may involve determining corrective action and the assignment of appropriate staff and equipment; may resolve tenant issues including referral to various social service programs.
Maintains various records or systems including computerized systems; enters and retrieves data; ensures reliability of database; participates in electronic document retention activities; performs other complex technical functions.
Observes and complies with City and mandated health and safety rules, regulations, and protocols. Oversee, manages, and coordinates duties related to any other housing programs. 328
Housing Coordinator

Performs other related duties as assigned.

QUALIFICATIONS
Knowledge of:
Methods and practices used in housing assistance and/or social service programs. Methods used to conduct housing inspections; specific property conditions that have the potential to endanger the health and safety of occupants.
Research and reporting methods, techniques, and procedures. Recent and on-going developments, current literature, and sources of information related to the operations of the assigned program(s).
Record keeping principles and procedures.
City and mandated health and safety rules, regulations, and protocols. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
Modern equipment and communication tools used for business functions and program, project, and task coordination.
Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
Coordinate and oversee programmatic administrative and compliance reporting activities. Analyze, interpret, summarize, and present administrative and technical information and data in an effective manner.
Evaluate and develop improvements in operations, procedures, policies, or methods. Research, analyze, and evaluate new service delivery methods, procedures, and techniques. Prepare clear and concise reports, correspondence, policies, procedures, and other written materials. Establish and maintain a variety of filing, record keeping, and tracking systems. Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
Effectively represent the department and the City in meetings with individuals, governmental agencies, community groups, various business, professional, and regulatory organizations. Learn and understand the organization and operation of the City and of outside agencies, as necessary,to assume assigned responsibilities.
Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments. Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:
329
Housing Coordinator

Equivalent to a bachelor’s degree in urban studies, public administration, social work or a related field and two (2) years of experience working with and assisting in the administration of assisted housing programs, property management, or housing/building inspection.

Licenses and Certifications:
Possession of, or the ability to obtain, a valid Class C California driver’s license upon appointment.

PHYSICAL DEMANDS
When assigned to an office environment, must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen and color vision to create and interpret color coded reports and spreadsheets; hearing and speech to communicate in person and over the telephone; and ability to stand and walk between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

When working in the field environment, must possess mobility to work in changing site conditions; possess the strength, stamina, and mobility to perform light to medium physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; to reach, twist, turn, kneel, and bend, to climb and descend ladders; and to operate a motor vehicle and visit various sites; vision to inspect site conditions and work in progress.

The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, with exposure to hazardous materials in some site locations. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 40 pounds, or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

ENVIRONMENTAL CONDITIONS
Employees work primarily in an office environment with moderate noise levels and controlled temperature conditions, and periodically work in a field environment where they are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Employees may interact with upset staff and/or public and private representatives and contractors in interpreting and enforcing departmental policies and procedures.
330
June 2022
FLSA: NON-EXEMPT

PARKS IRRIGATION TECHNICIAN

DEFINITION
Under general direction, performs a variety of activities in the installation, inspection, maintenance and repair of irrigation systems and related equipment in all City landscape irrigation systems; provides technical support to the Parks divison; performs parks maintenance worker duties and other related work as required.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Parks Manager and technical and functional direction from Parks Senior Maintenance Worker. Provides functional and technical direction to parks maintenance staff.

CLASS CHARACTERISTICS
This is an advanced journey-level maintenance classification with specialization in irrigation systems.

Incumbents at this level exercise considerable independent initative and judgement while performing difficult and responsible technical duties, such as monitoring, scheduling, maintaining, installing, and repairing irrigation systems in all City parks, facilities, sports fields, as well as City median and right-of- way landscaping. This classification is distinguished from the Parks Maintenance Worker series in that the former has specialized responsibilities in irrigation systems.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
Performs daily inspection and preventative maintenance of the City’s irrigation systems; identifies any safety or repair issues; troubleshoots and repairs electrical problems related to assigned irrigation systems and equipment.
Installs, maintains and repairs irrigation systems; changes and adjusts sprinkler heads and maintains controllers; performs repairs on field irrigation computers, controllers, pumps, wiring, valves, pipes, and sprinklers.
Evaluates irrigation needs based on a variety of factors including weather conditions, event schedules, and equipment performance; adjusts irrigation programs accordingly. Installs backflow devices; inspects and tests as necessary to ensure proper operation; certifies devices in compliance with regulatory requirements.
Monitors water usage for multiple assigned park and landscaped sites and ensures compliance with water usage plan and guidelines; makes adjustments as necessary to ensure that water usage does not exceed allotted amount.
Works effectively with contractors on City-approved irrigation projects; seeks bids and/or estimates for prososed projects.
Identifies, schedules, and supervises system repairs and installantion of new irrigation systems; reviews plans and inspects installation of new irrigation systems; performs annual testing of systems. Designs small irrigation systems.
331
Irrigation Technician

Operates specialized irrigation equipment including centralized irrigation clocks, wire tracers, metal detectors, and water pressure recorders.
Plans and recommends materials needed for work projects; orders approved supplies and materials. Prepares and maintains logs of work performed.
Coordinates, assigns, and reviews the work of maintenance personnel. Assists other personnel in all aspects of parks and landscape maintenance. Performs other duties as assigned.

QUALIFICATIONS
Knowledge of:
Practices, methods, equipment, tools and materials used in maintaining, repairing, constructing, and installing water irrigation systems for parks and landscapes. Principles of water conservation and usage relating to irrigation systems. Basic horticulture techniques.
Basic maintenance and repair of hand tools and equipment used in irrigation maintenance work.
Applicable Federal, State, and local laws, ordinances, regulations, and guidelines relevant to assigned duties.
Safe work methods and safety practices pertaining to the work, including the handling of hazardous chemicals.
Basic record keeping principles and procedures.
Basic computer applications related to the work.
Techniques for providing a high level of customer service to the public and City staff, in person and over the telephone.

Ability to:
Perform a variety of specialized technical tasks in the installation, maintenance, and repair of water irrigation systems.
Inspect irrigation systems and correct or repair as necessary. Utilize a computerized system for monitoring and controlling irrigation systems. Maintain efficient and effective irrigation systems using principles of water conservation. Read and understand construction drawings as they relate to irrigation systems. Estimate needed materials and labor and secure sufficient quantities; prepare and develop cost estimates.
Coordinate work assignments with other divisions and departments. Skillfully and safely operate a variety of power and hand tools and equipment. Practice safe work habits; train others in proper and safe work procedures. Follow division policies and procedures related to assigned duties. Maintain records and prepare work and time reports for areas of responsibility. Understand and carry out oral and written instructions. Organize own work, set priorities, and meet critical time deadlines. Use English effectively to communicate in person, over the telephone, and in writing. Use tact, initiative, prudence, and independent judgment within general policy and legal guidelines in politically sensitive situations.
Meet the physical requirements necessary to safely and effectively perform the assigned duties. 332
Irrigation Technician

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to the completion of the twelfth (12 th) grade or equivalent and two (2) years of experience working in landscape/irrigation, public works parks maintenance experience, including experience in design of irrigation systems.

Licenses and Certifications:
Possession of, or the ability to obtain, a valid Class C California driver’s license upon appointment. Obtain and maintain a valid California Class B Driver's License with appropriate endorsements within six months of appointment.
Possession of a Backflow Prevention Assembly Testers Certificate from the American Water Works Association (AWWA) is required within twelve (12) months of appointment. A Landscape Irrigation Auditor Certificate is desirable. An Irrigation Technician Certificate is desirable.

PHYSICAL DEMANDS
Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, grasp, and make repetitive hand movement in the performance of daily duties; to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vision to inspect and operate equipment.

The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards.

Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 50 pounds or heavier weights of up to 100 pounds on a frequent/occasional basis, in all cases with the use of proper equipment and/or assistance from other staff.

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS
Employees work in the field and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, chemicals, mechanical and/or electrical hazards, hazardous physical substances and fumes, dust, and air contaminants. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures.

WORKING CONDITIONS
May provide twenty-four-hour standby service.
333
DATE: June 20, 2022

TO:

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

FROM: Edmund Suen, Interim City Manager
Maria Saguisag-Sid, Human Resources Director

SUBJECT: CITY/EMID INVESTMENT POLICY

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors approve the attached resolutions adopting the City/EMID Investment Policy, dated June 20, 2022.

EXECUTIVE SUMMARY
The Finance Director/Treasurer and Human Resources Director review the City/EMID Investment Policy annually. There are no changes recommended to the Investment Policy at this time. However, the Investment Policy is updated to reflect the current composition of the City Council/EMID Board of Directors as well as to update Edmund Suen as the Interim City/District Manager.

BACKGROUND AND ANALYSIS
The City/EMID's Investment Policy was last updated and adopted on June 21, 2021. As a matter of procedure, the Investment Policy is reviewed annually by the Finance Director/Treasurer and Human Resources Director. The City’s three primary objectives for its investments, in order of priority, remain unchanged: (a) Safety, (b) Liquidity, and (c) Yield.
334
Although no changes are recommended to the contents of the Investment Policy at this time, the Investment Policy is updated to reflect the current composition of the City Council/EMID Board of Directors as well as to update Edmund Suen as the Interim City/District Manager.

FISCAL IMPACT
There is no fiscal impact in the adoption of the resolutions.

CITY COUNCIL/DISTRICT BOARD VISION, MISSION, AND

VALUE/PRIORITY AREA
This item is in alignment with City Council's Vision Statement for a sustainable Foster City under the economic sustainability framework.

Attachments:
Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Attachment 3 - City/EMID Investment Policy
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RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ADOPTING AN UPDATED INVESTMENT POLICY DATED JUNE 20, 2022

CITY OF FOSTER CITY
WHEREAS, California Government Code section 53646 requires that a local agency adopt an Investment Policy that governs the investment of public funds in accordance with State law; and
WHEREAS, the City’s Investment Policy was last updated on June 21, 2021; and WHEREAS, the City’s three primary objectives for its investments, in order of priority, remain unchanged: a) Safety, b) Liquidity, and c) Yield; and WHEREAS, the City’s Investment Policy is updated to reflect the current composition of the City Council as well as to update Edmund Suen as the Interim City Manager.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the Investment Policy dated June 20, 2022 is hereby approved.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 20th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________

RICHA AWASTHI, MAYOR
ATTEST:
_________________________________

PRISCILLA SCHAUS, CITY CLERK
336
RESOLUTION NO. _____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ADOPTING AN UPDATED INVESTMENT POLICY DATED JUNE 20, 2022

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, California Government Code section 53646 requires that a local agency adopt an Investment Policy that governs the investment of public funds in accordance with State law; and
WHEREAS, the District’s Investment Policy was last updated on June 21, 2021; and WHEREAS, the District’s three primary objectives for its investments, in order of priority, remain unchanged: a) Safety, b) Liquidity, and c) Yield; and WHEREAS, the District’s Investment Policy is updated to reflect the current composition of the City Council as well as to update Edmund Suen as the Interim City Manager.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Estero Municipal Improvement District that the Investment Policy dated June 20, 2022 is hereby approved.

PASSED AND ADOPTED as a resolution of the Estero Municipal Improvement District at the Regular Meeting held on the 20th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________

RICHA AWASTHI, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY
337
City of Foster City, California and
Estero Municipal Improvement District

INVESTMENT POLICY
June 20, 2022
338

CITY OF FOSTER CITY AND

ESTERO MUNICIPAL IMPROVEMENT DISTRICT

INVESTMENT POLICY
June 20, 2022
Richa Awasthi, Mayor
Jon Froomin, Vice Mayor
Sanjay Gehani, Council Member
Sam Hindi, Council Member
Patrick Sullivan, Council Member
Edmund Suen, Interim City Manager
PREPARED BY:

Financial Services Department
339

CITY OF FOSTER CITY AND

ESTERO MUNICIPAL IMPROVEMENT DISTRICT

INVESTMENT POLICY

TABLE OF CONTENTS
POLICY.............................................................................................................................4 SCOPE .............................................................................................................................4 PRUDENCE......................................................................................................................4 OBJECTIVES ...................................................................................................................5 A. Safety..................................................................................................................... 5 B. Liquidity.................................................................................................................. 5 C. Yield....................................................................................................................... 5 DELEGATION OF AUTHORITY.......................................................................................6 ETHICS AND CONFLICTS OF INTEREST......................................................................6 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ..........................................6 AUTHORIZED AND SUITABLE INVESTMENTS.............................................................7 DOWNGRADED BONDS ...............................................................................................10 COLLATERALIZATION ..................................................................................................10 SAFEKEEPING AND CUSTODY ...................................................................................10 DIVERSIFICATION.........................................................................................................10 MAXIMUM MATURITIES................................................................................................11 INTERNAL CONTROL ...................................................................................................11 PERFORMANCE STANDARDS.....................................................................................11 REPORTING ..................................................................................................................11 INVESTMENT POLICY ADOPTION...............................................................................11 GLOSSARY....................................................................................................................12 340
4 CITY OF FOSTER CITY AND

ESTERO MUNICIPAL IMPROVEMENT DISTRICT

INVESTMENT POLICY
JUNE 20, 2022
POLICY
It is the policy of the City of Foster City /Estero Municipal Improvement District (hereinafter collectively referred to as “City” or "City of Foster City") to invest public funds in a manner which will provide the optimal return available consistent with the City’s liquidity needs and the primary objective of protecting the safety of principal conforming to all laws of the State of California regarding the investment of public funds.

SCOPE
The City Treasurer or his designee is authorized to invest the City's funds in accordance with the California Government Code Sections 53601.1, 53602, 53635, and 53646.

This investment policy applies to all financial assets of the City. These funds are accounted for in the Comprehensive Annual Financial Report which includes the following fund types:
General Fund
Special Revenue
Capital Projects
Enterprise
Internal Service
Trust and Agency
Any new fund created by the legislative body, unless specifically exempted.

All monies entrusted to the City Treasurer will be pooled in an actively managed portfolio except for employee retirement funds, which are administered separately.

PRUDENCE
The actions of the City Treasurer in the performance of his/her duties as manager of public funds shall be evaluated using the following prudent person standard applied in the context of managing the overall portfolio:

Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Investment officers acting in accordance with written procedures and the investment policy exercising due diligence shall be relieved of personal responsibility for an 341
5 individual security's credit risk or market price changes, provided deviations from expectations are reported to the City Council / District Board in a timely fashion and appropriate action is taken to control adverse developments.

OBJECTIVES
There are three (3) primary objectives of the City’s Investment activities. In order of priority, they are: a) Safety, b) Liquidity, and c) Yield. In every case, all investment securities that are chosen to achieve these objectives will be in conformance with California state law and all applicable local ordinances or policies.

A. Safety
Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall seek to safeguard principal by a careful examination of credit risk and market risk of individual investments.

1. Credit Risk - is defined as the risk of loss due to failure of an issuer of a security, shall be mitigated by investing in only very safe institutions and by diversifying the fund so that the failure of any one issuer would not unduly harm the City's cash flow.

2. Market Risk - is defined as the risk of market value fluctuations of the investment portfolio’s securities due to overall changes in the general level of interest rates, shall be mitigated by managing duration risk of the City/District fund to no less than one year and no greater than three years.

B. Liquidity
The City investment portfolio will remain sufficiently liquid to enable the City to meet all operating expenditure requirements which might be reasonably anticipated. In order to maintain liquidity, the City shall maintain cash and investments with a maturity of not greater than one (1) year that is equal or greater than the sum of the minimum operating and capital reserve requirements established by City Council / District Board policy for the General Fund, Capital Improvement Funds, Enterprise Funds, Internal Service Funds, and any other funds for which the Council/Board may establish minimum reserve requirements. Notwithstanding the above considerations, a minimum of 5% of the portfolio will have investments maturing within one day or in pooled or money market funds.

C. Yield
The City investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account investment risk constraints and the cash flow characteristics of the portfolio. Whenever possible, consistent with risk limitations and prudent investment principles, the City shall make an effort to achieve returns not less than the market average rate of return. The market-average rate of return is defined as the average return on One-Year U.S.

Treasury Notes, measured by an index comprised of the 12 current U.S. Treasury One- 342
6 Year Notes.

DELEGATION OF AUTHORITY
Pursuant to Section 2.16.030 of the City Municipal Code, the City Treasurer has been authorized to undertake investment transactions on behalf of the City. The only officials authorized to undertake investment transactions on behalf of the City are the City Treasurer and Assistant Finance Director. The actual disbursement of funds for the placement of individual investments undertaken by these two officials shall be subjected to a second party approval by officers authorized to sign City checks and wire transfers:

Finance Director and Assistant Finance Director. On a quarterly basis, the City Treasurer and the Human Resources Director shall meet to discuss the status of current investments, strategies for future investments, and other investment matters deemed necessary and shall report to the City Council as necessary.

The City Treasurer is responsible for ensuring compliance with the City's investment policies as well as for establishing systems of internal control to regulate the activities of subordinate officials.

ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Clerk any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial investment positions that could be related to the performance of the City investment portfolio.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer or his/her designee will maintain a list of financial institutions authorized to provide investment services and shall conduct an annual review of the financial condition and credit worthiness of all institutions that the City is currently using for the placement of investments. All financial institutions including broker/dealers which desire to become qualified bidders for the City's investment transactions must provide the Financial Services Department with the following:
Certification of qualification under the Security and Exchange Commission’s (SEC) Rule 15c3-1 (Net Capital Requirement for Brokers and Dealers) Certification of registration with all appropriate federal and state regulatory bodies, which may include but are not limited to: SEC, Municipal Securities Rulemaking Board, Financial Industry Regulatory Authority, California Department of Corporations
Audited financial statement for the last three years and subsequent quarterly financial statements.
Certification of having read the City investment policy and depository contracts. 343
7 The City may require, at its discretion, periodic recertification of the matters set forth above.

The City Treasurer or his/her designee will investigate all financial institutions including brokers/dealers to determine if they are adequately capitalized, broker or deal in market securities appropriate to the City's needs, and agree to abide by the conditions set forth in the investment policy of the City. This will be done by having the financial institutions, brokers or dealers complete and return the appropriate questionnaire to the City Treasurer or his/her designee.

AUTHORIZED AND SUITABLE INVESTMENTS
The State of California Government Code (specifically, sections 16429.1, 53601 and 53649) limits the investment vehicles available to local agencies.

The following table summarizes the authorized investments, their maximum maturity, maximum percentage of portfolio, and maximum investment in any one issuer:

Authorized Investment Type1
Maximum
Maturity
Maximum % of
Portfolio
Maximum Investment in One
Issuer (as % of Portfolio)
State Treasurer’s Local
Agency Investment Fund
N/A 100% 100%
San Mateo County Pool
Investment Program
N/A 10% 10%
Government Agency Issues
Local Municipal Bonds 5 years 5% 5%
State Bonds 5 years 5% 5%
U.S. Treasury
Obligations
5 years 100% 100%
U.S. Agency
Securities
5 years 100% 50%
Bankers Acceptances 180 days 25% 5%
Commercial Paper (“A1”
rating or better)
90 days 20% 5%
Negotiable Certificates of
Deposit
5 years 30% 5%
Repurchase Agreements 1 year 50% 50%
Medium-Term Notes (“A1”
rating or better)
5 years 5% 5%
Shares of Beneficial Interest
(Mutual Funds)
N/A 10% 10%
Certificates of Deposit (non-
negotiable)
1 year 10% Maximum insurable
deposit with FDIC2
1 Investment Grade Ratings are based on Moody’s Long-Term Obligation Ratings. Alternative equivalent ratings by Standard & Poor’s are also acceptable.
2 Current maximum insured amount per institution is $250,000. 344
8 Detailed descriptions of each type of investments listed above are as follows:
State Treasurer's Local Agency Investment Fund (LAIF) - Government Code Section 16429.1 authorizes each local government agency to invest funds at a maximum amount allowable in this investment program administered by the California State Treasurer. The maximum amount of funds that can be invested with LAIF as dictated by LAIF regulations.
San Mateo County Pool Investment Program - Money invested with the San Mateo County Pool Investment Program. Investment in the County Pool is limited to 10% of the portfolio.
Government Agency Issues – Securities from various government agencies, such as those identified in Government Code Section 53601 (a) through (e), includes the following:
Local Municipal Bonds or other indebtedness – maximum maturity is 5 years from date of purchase, no limit in the amount of the portfolio, and no more than 5% of the total portfolio invested in any one issuer. Preference will be given to California municipal agencies.
State Bonds or other indebtedness – maximum maturity of 5 years from date of purchase, a 5% limit on total investments in the portfolio, and no more than 5% of the total portfolio invested in any one issuer.
U.S. Treasury Obligations, including notes or other indebtedness secured by the full faith and credit of the Federal Government – maximum maturity of 5 years from date of purchase, and no limit on amount invested as a % of total portfolio.
U.S. Agency Securities, including but not limited to issues by federal agencies such as the Federal Farm Credit Bureau, Government National Mortgage Association, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation – maximum maturity of 5 years from date of purchase, no limit on amount investment as a % of total portfolio, and no more than 50% of the total portfolio invested in any one issuer.
Bankers Acceptances - As authorized by Government Code Section 53601 (f), 25% of the City's portfolio may be invested in Bankers Acceptances that are eligible for purchase by the Federal Reserve System. Purchases of Bankers Acceptances may not exceed a 180 day maturity. No more than 5% of the market value of the portfolio shall be placed with any one institution.
Commercial Paper - As authorized by Government Code Section 53601 (g), 20% of the City's portfolio may be invested in commercial paper having a 'A1' rating for the issuers debt, rated by Moody's or Standard and Poors, with maturities not to exceed 90 days. No more than 5% of the portfolio shall be placed with any one institution.
345
9 Negotiable Certificate of Deposit - As authorized in Government Code Section 53601 (h), the City may invest 30% of its portfolio in negotiable certificates of deposit issued by commercial banks and savings and loan associations with a maturity at issuance of no greater than 5 years. No more than 5% of the market value of the portfolio shall be placed with any one institution. Repurchase Agreements - As authorized in Government Code Section 53601(l), this investment is an agreement between the local agency and seller for the purchase of securities on or before a specified date for a specified amount. The City may invest in Repurchase Agreements with banks and dealers with which the City has entered into a master repurchase contract which specifies terms and conditions of Repurchase Agreements and are fully collateralized by delivery to an independent third party custodian. In order to conform with the provisions of the Federal Bankruptcy Code which provides for the liquidation of securities held as collateral for repurchase agreement, the only securities acceptable as collateral shall be eligible negotiable certificates of deposit, eligible banker's acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States. There is no legal limitation on the amount of the repurchase agreement. However, the maturity period cannot exceed one year.
Medium-Term Notes - As authorized in Government Code Section 53601(o), medium-term notes are considered notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of "A1” or better by Standard & Poor or by Moody's rating services. Securities must have a maturity of no greater than five years from the date of purchase. No more than 5% percent of the portfolio may be invested in medium-term notes.
Shares of Beneficial Interest - As authorized by Government Section Code 53601(k), issues by diversified management companies, otherwise known as mutual funds, and as defined in Section 23701(m) of the Revenue and Taxation Code, are allowable investments. Mutual funds must consist of securities and obligations of the U.S. Government authorized by Section 53601 of the California Government Code. To be eligible for investment, said companies shall either:

1. Attain the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or

2. Have an investment adviser registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations as authorized above, and with assets under management in excess of $500,000,000. The price of shares of beneficial interest (mutual funds) shall not include any commission that these companies may charge at the time of purchase or redemption. No more than 10% of the portfolio may be invested in mutual funds.
346
10 Certificates of Deposit (non-negotiable) - As authorized in Government Code Section 53601, Certificates of Deposit are fixed term deposits with a financial institution with stipulated interest rates. The City shall deposit funds only with financial institutions which operate in California. Such investments are required to be collateralized by financial institutions from 105% to 150% depending on the specific security pledged as collateral. These institutions must be insured by the Federal Deposit Insurance Corporation (FDIC) or other federal government insurance banking systems.

Although financial institutions are required to collateralize such deposits, to guarantee preservation of capital, the City shall limit its investment in certificates of deposit to the maximum insurable deposit guaranteed by the FDIC or other federal insurance guarantor. The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law on July 21, 2010, establishing the FDIC-insured amount in effect per depositor of $250,000. The maximum maturity at issuance may not exceed 1 year.

DOWNGRADED BONDS
In the event that the rating of any investment is downgraded to ‘A2’, the City Treasurer will immediately notify the City Manager. If it is downgraded to ‘A3’ rating, the City Manager will provide notice to the City Council of the downgrade and that the bond will be sold if it falls to “Baa” rating or below, regardless of the loss, unless otherwise directed by City Council resolution at the next available City Council meeting.

COLLATERALIZATION
Collateralization will be required on two types of investments: Certificates of Deposit and Repurchase Agreements. Federal and State law governs the collateralization requirements for Certificates of Deposit, which under the terms of this policy shall not be less than 102% of the value of the deposit. With regards to Repurchase Agreements, the collateralization level will be in conformance with the California Government Code, and in no event less than 102% of market value of principal and accrued interest.

Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. Clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained by the issuing institution at all times.

SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the City Treasurer and evidenced by safekeeping receipts.

DIVERSIFICATION
The City will diversify its investments by security type and institution in accordance with the table of Authorized and Suitable Investments. However, 100% of the portfolio may consist of U.S. Treasury, U.S. Agency securities and/or the LAIF investment pool. 347
11 MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The City will not invest in securities maturing more than five (5) years from the date of purchase.

INTERNAL CONTROL
The City Treasurer shall establish an annual process of review internally, including assuring that an independent analysis by an external auditor be conducted annually to review and perform procedures testing on the City’s cash and investments.

PERFORMANCE STANDARDS
The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's risk constraints and cash flow needs.

The City's investment strategy is to obtain a market average rate of return. The market average rate of return is defined as the average return on one-year U.S. Treasury Notes.

REPORTING
The City Treasurer shall submit investment reports monthly to the City Council which should include a list of the portfolio’s holdings by investment asset class, name of institution, purchase date, maturity date, call date, par value, amount of deposit or cost of security, amortized book value, current market value of securities, coupon and effective yield, . In addition, the report will indicate the portfolio’s duration, total weighted average maturity and yield. The report will be signed as mandated in compliance with California Government Code Sections 53607 and 53646.

INVESTMENT POLICY ADOPTION
The above investment policy is adopted by resolution of the City of Foster City/Estero Municipal Improvement District. The policy is reviewed on an annual basis by the City Treasurer and Human Resources Director and any modifications made thereto shall be approved by the City Council/District Board.
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12 GLOSSARY
AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the insurer.

BID: The price offered for securities.

BOND RATINGS: bond ratings measure quality and safety based on the issuer's financial condition. These rating services evaluate the likelihood that a debt issuer will be able to meet scheduled interest and principal payments.

Moody's vs. Standard & Poors Bond Ratings
Bond Rating
Moody's
Standard
&
Poor's
Grade Risk
Aaa AAA Investment, Highest Quality Lowest Risk
Aa (1-3) AA Investment, Very High Quality Low Risk
A (1-3) A Investment, High Quality Low Risk
Baa BBB Minimum Investment Grade Medium
Risk
Ba BB Junk, Speculative High Risk
B B Junk, Very Speculative Higher Risk
Caa CCC Junk, Default Possible Higher Risk
Ca CC Junk, Default Probable Extreme
Risk
C D Junk, In actual or imminent
default
Highest
Risk
BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.

COLLATERAL: Securities, evident of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
349
13 CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Certificate of Deposit may be issued in either negotiable or nonnegotiable form. Nonnegotiable certificates cannot be resold in the secondary market and may face penalties for early redemption whereas a negotiable CD may be resold.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent return.

DURATION: A measure of the sensitivity of the asset's price to interest rate movements.

It broadly corresponds to the length of time before the asset is due to be repaid.

Example: the duration of a US Treasury Bill which matures in one year is 1.0. If interest rates immediately move 1% after purchase, the value of the investment would also change by 1%.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit.

FEDERAL FARM CREDIT BUREAU: The Bureau issues a variety of Federal Farm Credit Banks Consolidated System wide Debt Securities (Farm Credit Debt Securities) on behalf of the Farm Credit System Banks with a broad range of maturities and structures.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. 350
14 FEDERAL HOME LOAN MORTGAGE CORPORATION: The FHLMC, or “Freddie Mac”, is a Government-chartered corporation which buys qualified mortgage loans from the financial institutions that originate them, securitizes the loans, and distributes the securities through the dealer community. The securities are not backed by the U.S.

Government, however it does operate under a conservatorship that began on September 6, 2008, and conducts its business under the direction of the Federal Housing Finance Agency (FHFA).

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by PHA, VA or FMHM mortgages. The term pass-throughs is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

PORTFOLIO: Collection of securities held by an investor.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state - the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few regulated firms.
351
15 RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (Repo): A form of short-term borrowing for dealers in government securities. Technically, it represents the simultaneous sell and repurchase of a security. The dealer sells the combination of securities needed to overcollateralize the investor’s principal investment usually on an overnight basis, and buys them back the following day. For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction (buying the security and agreeing to sell in the future), it is a reverse repurchase agreement.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.

WEIGHTED AVERAGE MATURITY (WAM) – a measure of the portfolio’s investments with respect to timing of cash flows. Example: If a portfolio had only two securities of equal size, one maturing in 2 years and another in 3 years, the portfolio’s WAM would be 2.5 years. If the 2 year investment was $1 mm and the 3 year investment was $10 mm, the WAM would be 2.9 years.

YIELD: An investment’s annualized return. The simplest version of yield is calculated using the following formula: [yield = coupon amount/price.] When a bond is purchased at par (100% of face value), yield is equal to the interest rate. When the price changes, so does the yield.

BOOK YIELD – The yield to maturity at which the investment was purchased. 352
16 MARKET YIELD – the yield to maturity of the bond at current market price PORTFOLIO’S NET YIELD – The total interest received divided by amount invested, plus any gains and minus any losses taken, annualized.

YIELD TO MATURITY – The internal rate of return earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity, and that all coupon and principal payments will be made on schedule. Yield to maturity is actually an estimation of future return, as the rate at which coupon payments can be reinvested when received is unknown.
353
DATE: June 20, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

FROM: Marlene Subhashini, Community Development Director Megan A. Burke, Special Counsel

SUBJECT: INTRODUCE ORDINANCE ADOPTING CHAPTERS 3.50 (PARK FACILITIES IMPACT FEE), 3.60 (TRANSPORTATION IMPACT
MITIGATION FEE), AND 3.70 (PUBLIC SAFETY IMPACT FEE)

OF THE FOSTER CITY MUNICIPAL CODE TO IMPLEMENT
NEW DEVELOPMENT IMPACT FEES; ADOPT RESOLUTION

ADOPTING THE NEXUS STUDIES AND ASSOCIATED IMPACT

FEE PROJECT LISTS AND SETTING CHARGES FOR THE

PARKS FACILITIES IMPACT FEE, TRANSPORTATION
IMPACT FEE AND PUBLIC SAFETY IMPACT FEE; AND

ADOPT RESOLUTION ADOPTING THE NEXUS STUDY AND

SETTING CHARGES FOR THE COMMERCIAL LINKAGE FEE

RECOMMENDATION
It is recommended that the City Council take the following actions at the June 20, 2022 City Council Meeting/Public Hearing:

1. Consider the adoption of new Development Impact Fees, including the Park Facilities Impact Fee, Transportation Impact Mitigation Fee, and the Public Safety Impact Fee and to consider adopting updated rates for the City’s existing Commercial Linkage Fee;

2. Waive first reading and introduce an Ordinance adding Chapters

3.50 (Park Facilities Impact Fee), 3.60 (Transportation Impact 354
Mitigation Fee), and 3.70 (Public Safety Impact Fee) of the Foster City Municipal Code and pass the ordinance to second reading;

3. Adopt a Resolution adopting the nexus studies and associated impact fee project lists and setting charges for the Parks Facilities Impact Fee, Transportation Impact Mitigation Fee, and Public Safety Impact Fee; and

4. Adopt a Resolution adopting the nexus study and setting charges for the Commercial Linkage Fee.

EXECUTIVE SUMMARY
Last year, the City Council approved an agreement with Economic & Planning Systems, Inc. (EPS) to conduct a comprehensive Development Impact Fee (“DIF”) nexus study and update the City’s Commercial Linkage Fees (“CLFs”). EPS has completed a Foster City Comprehensive DIF Nexus Study, dated May 2022, and a CLF Nexus Study, dated May 24, 2022, which were both made available to the public and posted on the City’s website at least 10 days in advance of the June 20th City Council meeting. They are attached to this report, and incorporated herein, as Attachments 3 and 4.

The DIF and CLF nexus studies provide analyses regarding the proposed limits the City can collect for each impact fee category, with the fee amounts ultimately determined by City Council policy. On May 16, 2022, staff provided the City Council and the public with an update regarding the preliminary results of the DIF and CLF nexus studies and sought City Council direction regarding the fee amounts to bring back for adoption at the June 20th Public Hearing. After consideration and discussion of the item, a motion was made by Vice Mayor Froomin, seconded by Councilmember Gehani, and carried unanimously, 5-0-0, adopting Minute Order No. 1857, directing staff to bring back for adoption DIF and CLF that comply with the following parameters:

1. Lower DIFs on retail and office development and retain hotel and industrial as proposed;

2. For CLFs, set office and industrial fees closer to Foster City adjusted maximum. For retail and hotel, retain or lower current linkage fees; and

3. Provide reductions for DIFs as follows: 0% waiver for moderate affordability, 75% waiver for very low and low affordability if 20% of units are affordable within the development, and for Accessory Dwelling Units, and 100% waiver for very low and low units if the development has 25% or higher affordability.
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The attached Resolutions, proposed for adoption, provide two alternatives each for setting the DIF and CLF fee levels pursuant to City Council direction.

All alternatives are supported by the analyses in the nexus studies and do not exceed the maximum justified fee levels. It should be noted that the City will need to ensure that fee amounts are sufficient to fund new amenities and mitigate future impacts resulting from future development as proposed in the General Plan and other City planning documents when considering at what levels the fees should be set.

BACKGROUND & ANALYSIS

Foster City’s primary source of revenue generation has been through property tax while secondary sources of revenue have been from sales tax, Transient Occupancy Tax, and charges for services (e.g. planning and building fees, recreation classes, etc.). While sources for revenue generation are limited, the capital needs of Foster City have grown, propelled by population growth, new jobs, and an aging infrastructure. From 1990 to 2019, the City’s population grew from 26,000 to 33,693. With fewer options to generate revenue, pressing current and anticipated capital and infrastructure needs, DIFs and updated CLFs provide an additional revenue source to offset costs of public facilities related to development projects.

Impact fee revenues are used to cover the cost of constructing capital and infrastructure improvements required to serve new development and growth in the area in which they apply. As such, impact fees must be based on a reasonable nexus, or connection, between new development and the need for specific capital facilities and improvements. Impact fee revenues cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. In addition, impact fee revenue cannot be collected or used to cover the cost of preexisting infrastructure needs or deficiencies.

Foster City currently has a Quimby Act dedication and in-lieu fee requirement for parkland acquisition and other fees, such as sewer and water connection fees. The park in-lieu fee was established in 1984 to ensure that new residential subdivision developments contribute to the City’s Park system with park land dedication, credit for on-site facilities or in-lieu fee payments.

Additionally, the City Council recently adopted a Below Market Rate Housing In-lieu fees by Resolution No. 2022-21. These fees and requirements are separate from the fees being considered today. For additional background information, refer to the May 16, 2022 City Council Staff Reports (Attachment 356
6).

This action would adopt a DIF program, which will include new Park Facilities, Transportation Mitigation, and Public Safety Impact Fees, and set the amounts of those fees for residential and nonresidential development projects. It would also update the amount of the City’s existing CLF, which was adopted in 2016 and is imposed on non-residential development projects to fund affordable housing. Even though the fee was adopted in 2016, most major commercial development projects had received their entitlements prior to that.

LEGAL REQUIREMENTS
Under AB 1600 (California Government Code Section 66000 et. seq.), cities and counties have the authority to implement DIFs. DIFs allow cities to collect fees from new development projects to fund improvements that address those projects’ impacts on City’s infrastructure. In establishing, increasing, or imposing a fee as a condition for the approval of a development project, Government Code 66001(a) and (b) require a local agency to:

1. Identify the purpose of the fee;

2. Identify how the fee is to be used;

3. Determine how a reasonable relationship exists between the fee use and type of development project for which the fee is being used;

4. Determine how the need for the public facility relates to the type of development project for which the fee is imposed; and

5. Show the relationship between the amount of the fee and the cost of the public facility.

The nexus is based on the premise that new development should pay for its proportionate share of public improvement costs. Because residents, businesses, and their employees create the need for and benefit from the availability of public services and infrastructure improvements, new development should pay its fair share of public facilities/improvements that will serve the development.

In September 2021, the State of California adopted Assembly Bill (AB) 602, which includes several new requirements related to the development and implementation of impact fee programs. The key provisions related to the calculations documented in the DIF nexus study are summarized below. 357
Capital Improvement Plan: AB 602 requires that jurisdictions adopt a Capital Improvement Plan (CIP) as part of the nexus study process. This adoption can occur at the same time as the fee ordinance adoption. Accordingly, the nexus study will include a Foster City DIF Long-Term CIP (Foster City DIF CIP) to be approved by the City Council in conjunction with the DIF Program. The Foster City DIF CIP presented in the nexus study will be derived from the capital improvements identified as part of the nexus study. Explanation of Level of Service and Fee Increase: AB 602 requires that the nexus study provide explanations if the fee calculation is based on a change in existing levels of service. Since Foster City does not currently have a DIF Program, the calculations presented in the nexus study will provide justification for entirely new fees rather than an increase over an existing amount. The nexus study will rely on service standards developed in consultation with City staff and with reference to the existing capital facilities and improvements in the City as appropriate and documented herein. Residential Fees Adopted After July 1, 2022: AB 602 also requires that any residential fees adopted after July 1, 2022 must be charged on a per square foot basis, unless the City Council makes certain findings. Since the City has already undergone substantial work to calculate the residential DIFs on a per unit basis, the Council needs to adopt the DIFs before July 1, 2022 in order to avoid the new requirement, which would result in increased costs to revise the fee calculations and would delay the City’s adoption of the new DIFs.

The new requirements do not apply to the CLFs because those fees are not imposed on residential development.

DEVELOPMENT IMPACT FEES
The DIF nexus study (“Nexus Study”) calculates the DIFs by using the methodology described below:

While the nexus methodology employed varies by fee category as appropriate given the range of capital facilities and improvements covered, there are basic steps common to all. Specifically, for each fee category, EPS has applied the following general steps to calculate the nexus-supported fee amounts:
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1. Estimated existing and future population and employment in Foster City through buildout of the current General Plan using a variety of third-party sources, as described in the subsequent section.

2. Identified the new infrastructure and capital facility improvements needed to serve both existing and future residents and employees.

These needs were based on interviews with City staff and analysis of existing city facilities capacity and service standards.

3. Developed cost estimates for capital facility improvements described in step 2 above. These costs estimates were developed based on information provided by City departmental staff as well as additional research and in-house resources.

4. Allocated the capital facility costs identified in step 3 above between existing and new development to determine the share included in the DIF program. These allocation shares were determined in a variety of ways depending on improvement, available data, and City guidance. In cases where the facility or improvement is entirely triggered by new development, the costs are allocated 100 percent to the DIF program. In cases where the improvement is expected to service both the existing population and the future population equally, the share of costs attributable to new development is based on the City’s current versus future service population.

5. Once costs have been allocated between new and existing development, they are further distributed among residential and commercial uses to arrive at a cost per resident and a cost per employee. This distribution is based on the proportion of total forecasted service population that is composed of residents and employees, respectively.

6. Once costs are allocated to a “cost per resident” and “cost per employee” basis, they are multiplied by the people per household for each residential fee category or by the employment density for each commercial fee category.

7. A two percent (2%) charge is added to the fee to cover the cost of administering the fee program.

EPS has prepared a table set that summarizes the “maximum allowable” development impact fee schedule for the capital facility and equipment needs as evaluated in this nexus study. The DIF revenues will be used to fund:
Parks facilities – this fee will fund, park, trail, and recreation facility improvements necessary to accommodate growth.
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Public Safety Facilities – this fee will fund police and fire capital facilities and equipment (e.g., vehicles) necessary to accommodate growth.
Transportation Improvements – this fee will fund needed additions and improvements to the City’s transportation infrastructure to accommodate future transportation volumes associated with new development. These improvements will include infrastructure that supports both vehicles as well as transit, pedestrian, bicycle, and other modes.

The table below shows the Foster City Maximum Fee Calculations for the three categories listed above including CLFs.

Based on Minute Order No. 1857, which directed staff to bring back DIFs for retail and office that were lower than the maximum authorized amounts and DIFs for industrial and hotel that were equal to the maximum amounts, staff have included two DIF fee level options for potential adoption.

The first option is included as Alternative 1, Exhibit A to the Resolution setting charges for the Parks Facilities, Transportation Mitigation, and Public Safety Impact Fees (Attachment 2). Alternative 1 provides a greater reduction to the retail and office DIFs. Since the Parks Facilities Fee comprises the majority of the fee burden, the reduction was accomplished by 360
reducing that fee, while the Transportation Mitigation and Public Safety Impact Fees were retained at their maximum levels.

The second option is included as Alternative 2, Exhibit A to the Resolution setting charges for the DIFs (Attachment 2). Alternative 2 provides a lesser reduction to the retail and office DIFs. Since the Parks Facilities Fee comprises the majority of the fee burden, the reduction was, again, accomplished by reducing that fee and retaining the others at their maximum levels.
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COMMERCIAL LINKAGE FEE UPDATE
Consistent with the 2015 study underpinning the City’s existing CLF, the EPS CLF Study estimates the number of workers likely to be employed in an office/medical office/R&D, retail/restaurant/services, or hotel development, the wages of those workers, and the likelihood that those workers would have household incomes that require affordable housing because they cannot afford market-rate housing in Foster City. The number of income-qualified worker households requiring affordable housing is then multiplied by the estimated subsidy required to produce each of those affordable units to calculate the full subsidy requirement, which is then divided by the assumed square footage of the employment-generating building to calculate the maximum fee per square foot.

Due to the very high cost of producing housing in Foster City and throughout San Mateo County, the maximum nexus-based fee is extremely high – hundreds of dollars per square foot, just as was determined in the 2015 study. To illustrate one potential adjustment that the City can make to determine an appropriate fee level, EPS then calculated an “adjusted maximum” fee reflecting the fact that only a small proportion (7.9 percent) of employees who work in Foster City also live in Foster City, whereas the true maximum fee is calculated to provide adequate subsidy for all income- qualified employees working in Foster City regardless of where they might choose to live. While such adjustments are not legally required, they can be used and combined with feasibility considerations to justify adopting a fee below the very high maximum level.

Even with this potential adjustment based on commute patterns, the adjusted maximum linkage fees remain substantially higher than those charged in most jurisdictions, as shown in the table above. Charging linkage fee at these levels could present a financial challenge that potential developers and employers may not face in other communities around Foster City. Foster City’s current CLFs are shown below:

Based on Minute Order No. 1857, which directed staff to bring back CLFs for adoption that set office and industrial fees near the Foster City adjusted 362
maximum and set retail and hotel fees at the current or below current linkage fees, staff have included two CLF level options for potential adoption.

The first option is included as Alternative 1, Exhibit A to the Resolution setting charges for the Commercial Linkage Fees (Attachment 3). Alternative 1 provides a greater reduction to the CLF amounts, with office and industrial being set slightly lower than the adjusted maximum amounts, but still at higher rates than all of the peer cities, and retail and hotel being set lower than the current CLFs amounts.

The second option is included as Alternative 2, Exhibit A to the Resolution setting charges for the CLFs (Attachment 3). Alternative 2 sets the fees for office and industrial at the adjusted maximum amounts and sets retail and hotel at amounts that are near the average of the rates charged by peer cities.

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ADOPTION OF REDUCED FEES FOR AFFORDABLE HOUSING

Minute Order No. 1857 directed staff to bring back fee programs that provided for reduced DIFs for affordable housing development projects. Specifically, City Council indicated that it favored no reduction for moderately affordable units, a seventy-five percent (75%) reduction for very low and low income affordable units, provided that at least twenty percent (20%) of units in the project are designated as affordable, and a one hundred percent (100%) fee reduction for very low and low units if at least twenty-five (25%) of the units in the project are designated as affordable. Both the Resolution setting the charges for the DIFs and the tables setting forth the fee amounts include this fee reduction.

City Council also indicated that it wanted to provide a complete fee waiver for Accessory Dwelling Units. However, under current state law, ADUs less than 750 square feet are already exempt from paying impact fees, and ADUs over 750 square feet pay a fee that is proportionate to the size of the primary dwelling unit on the property. Therefore, if someone is constructing a 1,000 square foot ADU on a property with an existing 2,000 square foot primary dwelling unit, they will only pay 50% of the applicable impact fees. Given the state law reduction of fees for ADUs, staff does not recommend any additional reductions.

CONCLUSION
DIFs and CLFs enable the City to address the needs of the growing community and supporting affordable housing needs. These one-time charges on new development can be used to mitigate the impacts of new development by funding a range of capital programs required to address needs related to that development, including: transportation, parks, public safety, and capital facilities including the Recreation Center important to the City's future and quality of life. Funds from the CLFs can provide an affordable housing funding source to accomplish the housing programs and policies identified in the 2023-2031 Housing Element Update.

Under the Mitigation Fee Act, the City must provide annual reports that provide the fee account balances, the projects on which the fees were spent, and the projected dates of completion of those projects. Additionally, every five years, the City must report on unspent fee revenues by identifying the uses for the fees, defining the reasonable relationship between the fees and 364
the purposes for which they are charged, and identifying the projects on which the fees will be spent and the funding sources and dates of completion for those projects.

FISCAL IMPACT
DIFs can have a positive fiscal impact to the City. DIF revenues from new development are a significant portion of the funding sources supporting the City’s CIP. DIFs alone generally do not pay for capital projects and can only fund the portion attributable to new growth. For several of the projects, DIFs provide the required “local match” to leverage and help the City secure grants and other funding assistance. Therefore, additional funding sources must be identified to pay for the portion attributable to existing deficiencies to fund projects that will help mitigate the impacts of new development on the community.

When implemented carefully, they do not reduce the City’s competitiveness to development relative to its neighboring cities; ensure other goals, like housing production, can also be met; and provide the opportunity to still gain community benefits through the Development Agreement process.

The cost to the City to maintain a DIF program is the staff time required to apply the fees upon building permit issuance, monitor the program to ensure appropriate collection and use, and manage the construction of capital projects once funds are collected. Many of these costs can be paid for by the DIF funds through the administrative charge and by charging staff time for project development as a project cost.

The estimated revenues collected from the DIFs and CLFs that result from the 2022 DIF and CLF nexus studies will depend on the fee level alternatives adopted by City Council.

If adopted, in accordance with Government Code Section 66019, the updated Mitigation Fees shall be in full force and effect sixty (60) days after the adoption of this resolution and shall be published or posted as required by law.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This item directly relates to two (2) action items, (i) Affordable Housing, and (ii) Development Impact Fee Study, both included in the "Smart Planning, 365
Development, and the Local Economy" Value/Priority Area.

ENVIRONMENTAL REVIEW
The proposed ordinance and resolutions are not considered a project under Public Resources Code Section 21605 and CEQA Guidelines Section 15378 as the amendments will not result in a direct physical change in the environment or a reasonably foreseeable indirect change on the environment.

In addition, the proposed ordinance and resolutions are exempt under CEQA Guidelines Section 15061(b) (3) as it can be seen with certainty that there is no possibility for causing a significant effect on the environment.  No specific park projects are associated with these proposed ordinances and resolution.

The proposals are policy-oriented. They will be a funding mechanism for future facility development. When and if specific projects are developed and proposed for implementation, the environmental impacts of such projects will be evaluated in accordance with CEQA and City’s environmental review guidelines.

PUBLIC NOTICE
Notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least thirty (30) days prior to the meeting to those members of the public who filed a written request with the City.

A notice of a public hearing including the time and place of the meeting on the proposed fee schedule and the adoption of the Nexus Study was noticed in the following ways:
Published 1/4-page ad in the Foster City Islander – June 1, 2022 and June 8, 2022
Electronic mailing to the project applicants, owners and persons who expressed interest in receiving project updates – June 9, 2022 Foster City website: www.fostercity.org – May 26, 2022 Foster City TV Channel 27 – June 6, 2022 through June 20, 2022 Posting on site and at all Public Posting Places – May 26, 2022 Public notification of this City Council Meeting was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

STAFF RECOMMENDATION
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Development Impact Fees

Based on the comparison with peer cities, direction provided by Council at the May 16th Council meeting to bring back DIFs for retail and office that are lower than the maximum authorized amounts and DIFs for industrial and hotel that were equal to the maximum amounts, staff recommends Alternative #1 for DIFs shown highlighted in the table below.

Commercial Linkage Fees

Based on the comparison with peer cities, the City’s current linkage fee amounts and direction provided by City Council at the May 16th Council meeting to bring back CLFs that set office and industrial fees near the Foster City adjusted maximum and set retail and hotel fees at the current or below current linkage fees, staff recommends Alternative #1 for DIFs shown highlighted in the table below.

Attachments:
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Attachment 1 - Ordinance
Attachment 2 - Resolution (nexus studies and associated impact fees and charges)
Attachment 3 - Resolution (nexus study and commercial linkage fees) Attachment 4 - Foster City Comprehensive Development Impact Fee Nexus Study dated May 2022
Attachment 5 - Foster City Commercial Linkage Fee Nexus Study dated May 24, 2022
Attachment 6 - May 16, 2022 Staff Report
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ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ADOPTING

A TRANSPORTATION IMPACT MITIGATION FEE, ADOPTING A PUBLIC SAFETY

IMPACT FEE, AND ADOPTING A PARK FACILITIES IMPACT FEE TO BE IMPOSED

ON NEW DEVELOPMENT PROJECTS IN THE CITY OF FOSTER CITY

CITY OF FOSTER CITY
WHEREAS, the Mitigation Fee Act contained in Government Code 66000 et seq., permits the City to impose development impact fees on new development for the purposes of funding the public facilities necessary to serve that new development; and WHEREAS, the City desires to adopt a Park Facilities Impact Fee on new development to fund the costs associated with increased demand for community and neighborhood parks and recreational facilities created by that new development. The City’s General Plan includes a number of policies to maintain and increase the amount of available park and recreational areas; and
WHEREAS, the City Council has determined additional funds are necessary for maintaining and operating the City’s Public Safety activities; and WHEREAS, the City Council desires to acquire vehicles and transportation-related equipment and improve, replace and/or construct one or more public safety facilities to serve new development in the City; and
WHEREAS, the City Council has determined that the creation of a Public Safety Fee on new development within the City would provide the necessary funding for police and fire services related to new development; and
WHEREAS, the City’s General Plan calls for strategies to provide an efficient, reliable, and convenient transit system; improved bicycle routes; and a balanced street system to serve automobiles, pedestrians, bicycles, and transit; and WHEREAS, it is appropriate for new development to pay for improvements and developments to the transportation network proportionate to the demands the new development places on the City’s transportation infrastructure; and WHEREAS, the City desires to impose a Transportation Impact Mitigation Fee on new development to fund the costs associated with maintaining adequate street and transportation facilities related to new development; and WHEREAS, pursuant to Government Code sections 66016, 66016.5, 66018, and 6062a, the City must adopt the specific fees only after notice and public hearing; and 369
WHEREAS, pursuant to Government Code section 6062a, a notice of a public hearing on the proposed fee update was published on June 1, 2022 and June 8, 2022 in the Foster City Islander, a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was provided at least 30 days prior to the meeting to those members of the public who filed a written request with the City; and WHEREAS, at least ten (10) days prior to the public hearing referenced above, the City made available for public inspection information required under government Code section 66000, et. seq.; and
WHEREAS, on June 20, 2022 the City Council held a noticed public hearing to consider the City’s proposed new development fees at which time all interested persons were given an opportunity to comment.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES FIND AND HEREBY ORDAIN as follows:

Section 1. Chapter 3.50 (Park and Recreation Facilities) is hereby added to the City of Foster City Municipal Code as set forth in Attachment 1, attached hereto, and incorporated herein by reference.

Section 2. Chapter 3.60 (Public Safety Fee) is hereby added to the City of Foster City Municipal Code as set forth in Attachment 2, attached hereto, and incorporated herein by reference.

Section 3. Chapter 3.70 (Transportation Impact Mitigation Fee) is hereby added to the City of Foster City Municipal Code, as set forth in Attachment 3, attached hereto, and incorporated herein by reference.

Section 4. Validity. The above recitations are true and correct, are material to the adoption of this ordinance, and are incorporated herein by reference.

Section 5. Findings. The City Council finds that the impact fees and charges imposed by this Ordinance are necessary and reasonable to implement the goals and objectives of the City’s General Plan and are permitted by California state law.

Section 6. Environmental review. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378 and 15061(b)(3) as it has no potential for physical effects on the environment because it involves an adoption of certain fees and/or charges imposed by the City, does not commit the City to any specific project, and said fees and/or charges are applicable to future development projects and/or activities, each of which future projects and/or activities will be fully 370
evaluated in full compliance with CEQA when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (see CEQA Guidelines, Section 15004(b)(1)). Pursuant to CEQA Guidelines section 15378(b)(4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, is not defined as a “project” under CEQA. Therefore, approval of the fees and/or charges is not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and, even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval of the fees and/or charges may have a significant effect on the environment.

Section 7. Actions to effectuate and codification. The City Manager is hereby authorized and directed to take other actions on behalf of City, which are not expressly and specifically reserved for the City Council, to implement and effectuate this ordinance.

The City Clerk is directed to codify this ordinance in a manner which best reflects the legislative intent of the City Council in enacting this ordinance. The City Clerk is directed to resolve any numbering conflicts accordingly.

Section 8. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this ordinance be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this ordinance.

The City Council hereby declares that it would have passed this and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrase or clauses be declared unconstitutional on their face or as applied.

Section 9. Effective date. This ordinance shall be in full force and effective 30 days after its adoption, and shall be published or posted as required by law.

Section 10. Publication. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Foster City, California and cause the same to be published in accordance with State law. 371
The ordinance was introduced at a regular meeting of the City Council on the _____ day of _____ 2022, and adopted at a regular meeting of the Council held on the ______ day of ______ 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________

RICHA AWASTHI, MAYOR
ATTEST:
___________________________

PRISCILLA SCHAUS, CITY CLERK
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ATTACHMENT 1
Chapter 3.50

PARK FACILITIES IMPACT FEE
Sections:

3.50.010 Findings and Intent.

3.50.020 Purpose.

3.50.030 Definitions.

3.50.040 Establishment of a Park Facilities Impact Fee.

3.50.050 Exemptions.

3.50.060 Determination of Required Fees.

3.50.070 Payment of Fees.

3.50.080 Park Facilities Fee Fund and Accounting.

3.50.090 Fee Adjustments.

3.50.100 Fee Refunds.

3.50.110 Fees in Effect When Application Complete.

3.50.010 Findings and Intent.

The City Council hereby finds and declares that:

A. New Development increases demand on existing Park Facilities and creates the need for expanded or new facilities to serve New Development. The purpose of this Chapter is to enable the collection of mitigation fees to be used for the purpose of developing new or expanding existing Park Facilities.

B. It is the City’s intent and desire to require that New Development contribute their fair share toward the purchase, development and/or improvement of Park Facilities.

C. The imposition of impact fees is one of the customary methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development in order to promote and protect the public health, safety and welfare.

D. The provisions of this Ordinance are enacted pursuant to the City of Foster City General Plan and sections 66000, et seq. of the California Government Code (the “Mitigation Fee Act”).

3.50.020 Purpose.

The purpose of the Park Facilities Impact Fee is to fund the creation and improvement of Park Facilities, including, but not limited to, the planning, designing, developing, and improving of existing and newly acquired Park Facilities related to New Development and ensure that New Development pays for its fair share of park and recreational facilities. 373

3.50.030 Definitions.

For the purposes of this chapter, the following terms shall be defined as follows:

A. “Certificate of Occupancy” as used in this Chapter, has the same meaning as in California Government Code section 66007(e).

B. “Park Facilities” shall mean any public improvements deemed necessary by the City to develop, improve or expand land and facilities for park and recreational purposes. Such improvements may include, but are not limited to: grading; landscaped areas for active and passive recreational use, trails and sports fields; irrigation and drainage systems; lawn, shrubs and trees; facilities for recreational community gardening; walkways; bicycle facilities and park lighting; playground or other recreational equipment; picnic facilities; community center or other buildings, swimming pools; volleyball, basketball, tennis, racquetball and other courts; vehicle driveways and parking areas and any other facilities which may hereafter be authorized by state law or approved by the City.

C. “Park Facilities Fee” shall mean the mitigation fee imposed on New Development for the purpose of funding park and recreational facilities related to New Development.

D. “New Development” shall mean all new building construction, conversion to a use that intensifies existing Park Facilities demands, and any other new construction that creates additional impacts on Park Facilities. New Development shall include new residential and nonresidential development.

E. “Building Permit” includes full structural building permits as well as partial permits such as foundation-only permits or tenant improvements.

3.50.040 Establishment of a Park Facilities Impact Fee.

Except as otherwise provided in this chapter, developers of New Development shall pay a Park Facilities Fee in an amount established by resolution of the City Council in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and demonstrates the reasonable relationship between the need for Park Facilities and the type of development projects on which the fee will be imposed.

3.50.050 Exemptions.

The following types of development shall not be required to pay a Park Facilities Fee:

A. Alterations, renovations or expansion of an existing building or structure that do not add new square footage or dwelling units or intensify an existing use. 374
B. Replacement of building square footage or dwelling units on the same lot that does not add new square footage or dwelling units or intensify an existing use.

C. The replacement of a destroyed or partially destroyed or damaged building or structure that does not add new square footage or dwelling units or intensify an existing use.

3.50.060 Determination of Required Fees.

A. The Community Development Director, or the Director’s designee, shall be responsible for determining the fees required by this chapter. This determination shall be made at the time of application for the Building Permit.

B. The Park Facilities Fee may be modified automatically on an annual basis in accordance with the change in the Engineering News Record (“ENR”) Construction Cost Index for the San Francisco area. This adjustment shall not require any action of the City Council.

3.50.070 Payment of Fees.

A. The fees required by this chapter from a developer shall be paid at the time the City issues a Building Permit for each New Development project, unless the developer of a residential development enters into an agreement with the City to pay the fees at the time the Certificate of Occupancy is issued, pursuant to Government Code section 66007(c). An agreement to defer payment until the issuance of a Certificate of Occupancy must be executed and recorded before the City will issue a Building Permit for the development project.

B. If New Development changes or intensifies the existing use on the project site or adds additional square footage or dwelling units to an existing building, thereby requiring the payment of a new or additional Park Facilities Fee, the fee amount associated with the existing use on the project site shall be credited against the new total fee due, as determined by the Community Development Director; provided, however, that, in no event, shall the City refund the fees previously paid.

3.50.080 Park Facilities Fee Fund and Accounting.

A. Park Facilities Fee Fund: Fees collected pursuant to this chapter shall be deposited in the Park Facilities Fee Fund, and shall be segregated and used and expended for the creation of Park Facilities related to New Development. Any interest accrued by the account shall be used solely for the purpose of funding Park Facilities.
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B. Park Facilities Fee Accounting: The City shall maintain accounts and prepare reports in accordance with California Government Code Section 66001 et seq.

3.50.090 Fee Adjustments.

Any person subject to a fee required by this chapter may apply to the Community Development Director, or the Director’s designee, for a reduction, adjustment or waiver of that fee based upon the absence of a reasonable relationship between the impact of that applicant’s development project on Park Facilities in the City and the amount of the fee charged.

A. Application. An applicant shall file a written request to adjust fees with the Community Development Director, not later than 10 days after the City notifies the developer of the amount of the fee to be charged. Additional time, as determined by the Community Development Director, or the Director’s designee, will be allowed when significant additional information is required of the developer. The application shall provide evidence illustrating that the payment of the fee authorized by this chapter and imposed by implementing resolution bears no reasonable relationship or nexus with the impact of the development on the need for Park Facilities within the city and state in detail the factual basis for the request for reduction, adjustment or waiver. If an applicant desires to receive a Building Permit prior to the completion of the appeal process, applicant shall deposit the fee being appealed with the application. Such fee or portion thereof will be refunded if the appeal is successful.

B. Decision of the Community Development Director. The Community Development Director, or the Director’s designee, shall issue a decision on the application within 30 days after the application is filed with the Community Development Department. The Community Development Director’s, or the Director’s designee’s, decision shall state his or her determination regarding the amount of the Park Facilities Fee that may reasonably be imposed on the New Development and include a brief description of the basis for the Director’s decision.

C. Appeal of the Decision of the Community Development Director. Decisions of the Community Development Director, or the Director’s designee, may be appealed to the City Manager. Appeals must be filed within 10 days of the Community Development Director’s, or the Director’s designee decision. The City Manager shall review the application and evidence presented to the Community Development Director and issue a decision within 15 days. The decision of the City Manager is final and may be appealed or protested pursuant to Government Code section 66020.

3.50.100 Fee Refunds.

Upon application, fees collected by the City pursuant to this chapter shall be refunded 376
under the following circumstances:

A. Fees collected pursuant to this chapter are erroneously or illegally collected.

B. The Building Permit expires, and no extension has been granted, for the development project upon which fees were imposed pursuant to this chapter. An application for refund pursuant to this subsection (B) shall be filed with the Community Development Director no later than 90 days after expiration of the Building Permit. The amount of refund shall be reduced by an amount to cover the cost to the City for processing the refund.

3.50.110 Fees in Effect When Fee is Paid.

Unless otherwise required by law, the amount of the fees to be paid under this chapter shall be in the amount of the fee in effect at the time the fee is paid. 377
ATTACHMENT 2
Chapter 3.60

TRANSPORTATION IMPACT MITIGATION FEE
Sections:

3.60.010 Findings and Intent.

3.60.020 Purpose.

3.60.030 Definitions.

3.60.040 Establishment of Transportation Impact Mitigation Fee.

3.60.050 Exemptions.

3.60.060 Determination of Required Fees.

3.60.070 Payment of Fees.

3.60.080 Transportation Fee Fund and Accounting.

3.60.090 Fee Adjustments.

3.60.100 Fee Refunds.

3.60.110 Fees in Effect When Application Complete.

3.60.120 Fee Credits for Implementation and Administration of Transportation Mitigation Measures and/or Construction of Transportation Facilities.

3.60.130 Fee Credits for Improvements Extra to the Project within Assessment Districts.

3.60.140 Development Agreement Projects Exempt.

3.60.010 – Findings and Intent.

The City Council hereby finds and declares that:

A. New Development projects in the city have had and will continue to have significant citywide (other than site specific) impacts on the availability and adequacy of Transportation Facilities.

B. It is the City’s intent and desire to provide efficient, reliable and convenient transit system, improved bicycle routes, and a balanced street system to serve automobiles, pedestrians, bicycles, and transit.

C. The imposition of impact fees is one of the customary methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development in order to promote and protect the public health, safety, and welfare.

D. The provisions of this Ordinance are enacted pursuant to the City of Foster City General Plan and section 66000, et seq. of the California Government Code (the “Mitigation Fee Act”).
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3.60.020 Purpose.

The purpose of the Transportation Fee is to fund the planning, design, development, and construction of Transportation Facilities related to New Development and ensure that New Development pays for its fair share of Transportation Facilities.

3.60.030 Definitions.

For the purposes of this chapter, the following terms shall be defined as follows:

A. “Certificate of Occupancy” as used in this Chapter, has the same meaning as in California Government Code section 66007(e).

B. “Building Permit” includes full structural building permits as well as partial permits such as foundation-only permits or tenant improvements.

C. “Governmental or public facilities” shall mean publicly owned buildings and structures used for the purposes of conducting city, county, state or federal government business. Such facilities shall include, but not be limited to, city halls, police and fire stations, offices, equipment yards, sanitation facilities, schools, recreation centers, and similar facilities. Private commercial development projects leasing publicly owned land shall not be considered governmental or public facilities.

D. “Transportation Facilities” shall mean transportation system improvement projects that require physical alteration or expansion of the transportation system. Examples of Transportation Facilities include, but are not limited to, roadway improvements, signalization improvements, other public right-of-way improvements such as bus shelters, and multimodal improvements, such as bikeways and sidewalks.

E. “Transportation Fee” shall mean the Transportation Impact Mitigation Fee imposed on New Development for the purpose of funding Transportation Facilities related to New Development.

F. “New Development” shall mean all new building construction, conversion to a use that intensifies existing transportation demands, and any other new construction that creates additional transportation impacts. New Development shall include new residential and nonresidential development.

3.60.040 Establishment of Transportation Impact Mitigation Fee.

Except as otherwise provided in this chapter, developers of New Development shall pay a Transportation Fee in an amount established by resolution of the City Council in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and 379
demonstrates the reasonable relationship between the need for Transportation Facilities and the type of development projects on which the fees will be imposed.

3.60.050 Exemptions.

A. The following developments shall be exempt from the requirements of this chapter:

1. Governmental or public facilities.

2. Developments on real property owned by a government transportation agency which are used exclusively for public transportation purposes.

3. Public elementary schools and secondary schools.

4. Private schools which meet the requirements contained in California Education Code Section 48222, or its successor, so that attendance at such schools complies with California compulsory education requirements.

5. Alterations, renovations or expansion of an existing building or structure that do not add new square footage or dwelling units or intensify an existing use.

6. Replacement of building square footage or dwelling units on the same lot that does not add new square footage or dwelling units or intensify an existing use.

7. Replacement of a destroyed or partially destroyed or damaged building or structure that does not add new square footage or dwelling units or intensify an existing use.

3.60.060 Determination of Required Fees.

A. The Community Development Director, or the Director’s designee, shall be responsible for determining the fees required by this chapter. This determination shall be made at the time of application for the Building Permit or at the time of approval for a change in use.

B. The Transportation Fee may be modified automatically on an annual basis in accordance with the change in the Engineering News Record (“ENR”) Construction Cost Index for the San Francisco area. This adjustment shall not require any action of the City Council.

3.60.070 Payment of Fees.
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A. The fees required by this chapter from a developer shall be paid at the time the City issues a Building Permit for each development project, unless the developer of a residential development requests to enter into an agreement with the City to pay the fees at the time the Certificate of Occupancy is issued, pursuant to California Government Code section 66007(c). An agreement to defer payment until the issuance of a Certificate of Occupancy must be executed and recorded before the City will issue a Building Permit for the development project.

B. If New Development changes or intensifies the existing use on the project site or adds additional square footage to an existing building, thereby requiring the payment of a new or additional Transportation Fee, the fee amount associated with the existing use on the project site shall be credited against the new total fee due, as determined by the Community Development Director, or the Director’s designee; provided, however, that, in no event, shall the City refund the fees previously paid.

3.60.080 Transportation Fee Fund and Accounting.

A. Transportation Fee Fund: Fees collected pursuant to this chapter shall be deposited in the Transportation Fee Fund, and shall be segregated and used and expended primarily to fund planning, design, development, and construction of Transportation Facilities related to New Development. Any interest accrued by the account shall be used solely for the purpose of funding Transportation Facilities.

B. Transportation Fee Accounting: The City shall maintain accounts and prepare reports in accordance with California Government Code Section 66001 et seq.

3.60.090 Fee Adjustments.

Any person subject to a fee required by this chapter may apply to the Community Development Director, or the Director’s designee, for a reduction, adjustment or waiver of that fee based upon the absence of a reasonable relationship between the impact of that applicant’s development project on Transportation Facilities in the city and the amount of the fee charged.

A. Application. An applicant shall file a written request to adjust fees with the Community Development Director, not later than 10 days after the City notifies the developer of the amount of the fee to be charged. Additional time, as determined by the Community Development Director, or the Director’s designee, will be allowed when significant additional information is required of the developer. The application shall provide evidence illustrating that the payment of the fee authorized by this chapter and imposed by implementing resolution bears no reasonable relationship or nexus with the impact of the development on the need for Transportation Facilities within the city and state in detail the factual basis for the request for reduction, adjustment or waiver. If an applicant desires 381
to receive a Building Permit prior to the completion of the appeal process, applicant shall deposit the fee being appealed with the application. Such fee or portion thereof will be refunded if the appeal is successful.

B. Decision of the Community Development Director. The Community Development Director, or the Director’s designee, shall issue a decision on the application within 30 days after the application is filed with the Community Development Department. The Community Development Director’s, or the Director’s designee’s, decision shall state his or her determination regarding the amount of the Transportation Fee that may reasonably be imposed on the New Development and include a brief description of the basis for the Director’s decision.

C. Appeal of the Decision of the Community Development Director. Decisions of the Community Development Director, or the Director’s designee, may be appealed to the City Manager. Appeals must be filed within 10 days of the Community Development Director, or the Director’s designee, decision. The City Manager shall review the application and evidence presented to the Community Development Director, or the Director’s designee, and issue a decision within 15 days. The decision of the City Manager is final and may be appealed or protested pursuant to Government Code section 66020.

3.60.100 Fee Refunds.

Upon application, fees collected by the City pursuant to this chapter shall be refunded under the following circumstances:

A. Fees collected pursuant to this chapter are erroneously or illegally collected.

B. The Building Permit expires, and no extension has been granted, for the development project upon which fees were imposed pursuant to this chapter. An application for refund pursuant to this subsection (B) shall be filed with the Community Development Director no later than 90 days after expiration of the Building Permit. The amount of refund shall be reduced by an amount to cover the cost to the City for processing the refund.

3.60.110 Fees in Effect When Fee is Paid.

Unless otherwise required by law, the amount of the fees to be paid under this chapter shall be in the amount of the fee in effect at the time the Transportation Fee is paid.

3.60.120 Fee Credits for Implementation of Transportation Mitigation Measures and/or Construction of Transportation Facilities.

A developer may be entitled to a reduction in the amount of the fees required by this chapter, in an amount to be determined by the Community Development Director, or the 382
Director’s designee, if that developer implements transportation mitigation measures or constructs Transportation Facilities. The Community Development Director, or the Director’s designee, determination shall be based upon the actual costs reasonably incurred in constructing the Transportation Facilities.

3.60.130 Fee Credits for Improvements Extra to the Project or Within Assessment Districts.

A developer may be entitled to a reduction in the amount of the Transportation Fees required by this chapter, in an amount to be determined by the Community Development Director, or the Director’s designee, if that developer’s project was required to construct specific Transportation Facilities, which are extra to the project, or the development project is located within the boundaries of an assessment or other special district in which Transportation Facilities were constructed (or are intended to be constructed) with the use of funds derived by virtue of said district and that developer’s property for which development is proposed has been financially encumbered or otherwise burdened to pay for all or a portion of the Transportation Facilities paid for or to be paid for by assessments levied by the district. The Community Development Director, or the Director’s designee, determination of the amount of reduction required pursuant to this section shall be based upon the developer’s actual costs reasonably incurred for the construction of the Transportation Facilities.
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ATTACHMENT 3
Chapter 3.70

PUBLIC SAFETY IMPACT FEE
Sections:

3.70.020 Purpose.

3.70.030 Definitions.

3.70.040 Establishment of a Public Safety Fee.

3.70.050 Determination of Required Fees.

3.70.060 Payment of Fees.

3.70.070 Public Safety Fee Fund and Accounting.

3.70.080 Fee Adjustments.

3.70.090 Fee Refunds.

3.70.100 Fees in Effect When Application Complete.

3.70.010 Findings and Intent.

The City Council hereby finds and declares that:

A. New Development projects in the city have had and will continue to have significant citywide (other than site specific) impacts on the availability and adequacy of Public Safety Facilities.

B. It is the City’s intent and desire to maintain well developed community facilities including Public Safety Facilities.

C. The imposition of impact fees is one of the customary methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development in order to promote and protect the public health, safety, and welfare.

D. The provisions of this Ordinance are enacted pursuant to the City of Foster City General Plan and section 66000, et seq. of the California Government Code (the “Mitigation Fee Act”).

3.70.020 Purpose.

A. The purpose of the public safety fee is to fund Public Safety Facilities by providing adequate levels of police and fire facility improvements, vehicles, and other equipment necessary for adequate police and fire service provision related to New Development.

B. The intent of the public safety fee is to provide a funding mechanism to pay for the expansion or construction of Police and Fire facilities, the improvement of 384
existing buildings, and the acquisition of new vehicles and specialized equipment.

3.70.030 Definitions.

For the purposes of this chapter, the following terms shall be defined as follows:

A. "Certificate of Occupancy" as used in this Chapter as the same meaning as in California Government Code section 66007(e).

B. “Building Permit” includes full structural building permits as well as partial permits such as foundation-only permits or permits for tenant improvements.

C. "Public Safety Facility" means police and fire facility improvements, vehicles, and other equipment necessary for adequate police and fire service provision related to New Development.

D. “Public Safety Fee” shall mean the Public Safety Impact Mitigation Fee imposed on New Development for the purpose of funding Public Safety Facilities related to New Development.

E. “New Development” shall mean all new building construction, conversion to a use that intensifies existing public safety demands, and any other new construction that creates additional public safety impacts.

3.70.040 Establishment of a Public Safety Fee.

Except as otherwise provided in this chapter, applicants shall pay a Public Safety Fee in an amount established by resolution of the City Council in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and demonstrates the reasonable relationship between the need for Public Safety Facilities and the type of development projects on which the fees will be imposed.

3.70.050 Determination of Required Fees.

A. The Community Development Director, or the Director’s designee, shall be responsible for determining the fees required by this chapter. This determination shall be made at the time of application for the Building Permit for the New Development.

B. The Public Safety Fee may be modified automatically on an annual basis in accordance with the change in the Engineering News Record (“ENR”) Construction Cost Index for the San Francisco area. This adjustment shall not require any action of the City Council.
385

3.70.060 Payment of Fees.

A. The fees required by this chapter from a developer shall be paid at the time the City issues a Building Permit for each development project, unless the developer of a residential development project enters into an agreement with the City to pay the fees at the time the Certificate of Occupancy is issued, pursuant to Government Code section 66007(a). An agreement to defer payment until the issuance of a Certificate of Occupancy must be executed and recorded before the City will issue a Building Permit for the development project.

B. If New Development changes or intensifies the existing use on the project site or adds additional square footage to an existing building, thereby requiring the payment of a new or additional Public Safety Fee, the fee amount associated with the existing use on the project site shall be credited against the new total fee due, as determined by the Community Development Director, or the Director’s designee; provided, however, that, in no event, shall the City refund the fees previously paid.

3.70.070 Public Safety Fee Fund and Accounting.

A. Public Safety Fee Fund: Fees collected pursuant to this chapter shall be deposited in the Public Safety Fee Fund, and shall be segregated and used and expended primarily to fund Public Safety Facilities related to New Development.

Any interest accrued by the account shall be used solely for the purpose of funding Public Safety Facilities.

B. Public Safety Fee Accounting: The City shall maintain accounts and prepare reports in accordance with California Government Code Section 66001 et seq.

3.70.080 Fee Adjustments.

Any person subject to a fee required by this chapter may apply to the Community Development Director, or the Director’s designee, for a reduction, adjustment or waiver of that fee based upon the absence of a reasonable relationship between the impact of that applicant’s development project on Public Safety Facilities in the City and the amount of the fee charged.

A. Application. An applicant shall file a written request to adjust fees with the Community Development Director, not later than 10 days after the city notifies the developer of the amount of the fee to be charged. Additional time, as determined by the Community Development Director, or the Director’s designee, will be allowed when significant additional information is required of the developer. The application shall provide evidence illustrating that the payment of the fee authorized by this chapter and imposed by implementing resolution bears no reasonable relationship or nexus to the impact of the development on the need for Public Safety Facilities within the City and state in detail the factual 386
basis for the request for reduction, adjustment or waiver. If an applicant desires to receive a Building Permit prior to the completion of the appeal process, applicant shall deposit the fee being appealed with the application. Such fee or portion thereof will be refunded if the appeal is successful.

B. Decision of the Community Development Director. The Community Development Director, or the Director’s designee, shall issue a decision on the application within 30 days after the application is filed with the Community Development Department. The Community Development Director’s, or the Director’s designee’s, decision shall state his or her determination regarding the amount of the Public Safety Fee that may reasonably be imposed on the subject New Development and include a brief description of the basis for the Director’s decision.

C. Appeal of the Decision of the Community Development Director. Decisions of the Community Development Director, or the Director’s designee, may be appealed to the City Manager. Appeals must be filed within 10 days of the Community Development Director’s, or the Director’s designee’s, decision. The City Manager shall review the application and evidence presented to the Community Development Director, or the Director’s designee, and issue a decision within 15 days. The decision of the City Manager is final and may be appealed or protested pursuant to Government Code section 66020.

3.70.090 Fee Refunds.

Upon application, fees collected by the City pursuant to this chapter shall be refunded under the following circumstances:

A. Fees collected pursuant to this chapter are erroneously or illegally collected.

B. The Building Permit expires, and no extension has been granted, for the development project upon which fees were imposed pursuant to this chapter. An application for refund pursuant to this subsection (B) shall be filed with the Community Development Director no later than 90 days after expiration of the Building Permit. The amount of refund shall be reduced by an amount to cover the cost to the City for processing the refund.

3.70.100 Fees in Effect When Fee is Paid.

Unless otherwise required by law, the amount of the fees to be paid under this chapter shall be in the amount of the fee in effect at the time the fee is paid. 387
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ADOPTING

THE NEXUS STUDIES AND ASSOCIATED IMPACT FEE PROJECT LISTS AND

SETTING CHARGES FOR THE PARKS FACILITIES IMPACT FEE,

TRANSPORTATION IMPACT FEE, AND PUBLIC SAFETY IMPACT FEE

CITY OF FOSTER CITY
WHEREAS, the Foster City Municipal Code (“FCMC”) imposes upon new residential and nonresidential development the requirement to pay a Parks Facilities Impact Fee (FCMC Ch. 3.50), a Transportation Impact Fee (FCMC Ch. 3.60), and a Public Safety Impact Fee (FCMC Ch. 3.70) (referred to collectively as “Mitigation Fees”); and WHEREAS, FCMC Section 3.50.040 empowers the City Council to establish the amount of the Park Facilities Impact Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and that demonstrates the reasonable relationship between the need for park facilities and the type of development projects on which the fee will be imposed; and
WHEREAS, FCMC Section 3.60.040 empowers the City Council to establish the amount of the Transportation Impact Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and that demonstrates the reasonable relationship between the need for transportation facilities and the type of development projects on which the fee will be imposed; and WHEREAS, FCMC Section 3.70.040 empowers the City Council to establish the amount of the Public Safety Impact Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and that demonstrates the reasonable relationship between the need for public safety facilities and the type of development projects on which the fee will be imposed; and WHEREAS, new development projects attract new residents and employees to the City, generating an increased demand for park, transportation, and public safety facilities; and
WHEREAS, the City has determined that City parks/recreation, transportation, and public safety facilities are reaching capacity, and that the City requires a cost-effective 388
and efficient way of serving future residents and employees while maintaining existing levels of service; and
WHEREAS, the City desires to charge the Mitigation Fees upon development projects to ensure that new development contributes its fair share to public facilities in the City consistent with the City’s standards; and
WHEREAS, the City contracted with Economic & Planning Systems (EPS) to perform studies for each of the new Mitigation Fees demonstrating the reasonable relationship between the need for each fee and the type of development on which each fee will be imposed and has determined amounts for each fee based on the reasonable relationship between each fee and the type of development project on which the fee will be imposed; and
WHEREAS, EPS prepared and submitted a Foster City Comprehensive Development Impact Fee Nexus Study, dated May 2022, attached to the Staff Report, and incorporated by reference (the “Nexus Study”); and
WHEREAS, the Nexus Study substantiates a methodology that will charge each new development project only for the costs necessary to mitigate the impacts expected to be caused by that development project; and
WHEREAS, there is a reasonable relationship between the Mitigation Fees and the development projects on which the Fees will be imposed because the Fees will only fund costs necessitated by each new development; and
WHEREAS, the Mitigation Fees will not exceed the estimated reasonable cost of providing the land and facilities for which the Fees are imposed; and WHEREAS, the Mitigation Fees will not be levied, collected or imposed for general revenue purposes, but are levied specifically to fund facilities of the types set forth in the Nexus Study; and
WHEREAS, the Nexus Study establishes proposed amounts and provides an evaluation of the need for new Mitigation Fees and establishes the nexus between the imposition of the new Fees and the estimated reasonable costs of providing the services for which the Fees are charged; and
WHEREAS, the Nexus Study identifies the City’s existing level of parks, transportation, and public safety services, identifies the proposed new level of service, 389
and includes an explanation of why the new level of service is appropriate; and WHEREAS, the Nexus Study includes information that supports the City’s actions, as required by subdivision (a) of Section 66001 of the Government Code; and WHEREAS, the Nexus Study includes a Foster City Development Impact Fee Long-Term Capital Improvement Plan (“DIF CIP”), which serves as its capital improvement plan pursuant to subdivision (a)(6) of Section 66016.5 of the Government Code for the Mitigation Fees; and
WHEREAS, the DIF CIP indicates the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the Mitigation Fees; and
WHEREAS, the Nexus Study was presented to the City Council; and WHEREAS, the Nexus Study calculates the Mitigation Fees that can be charged on new development, and therefore, the City Council may adopt reduced fees for certain classes of projects or land use categories if doing so effectuates a policy of the City; and WHEREAS, in recognition of the challenges that retail establishments are facing post pandemic and the difficulty in attracting and retaining retail establishments in the City, the Council desires to set the Mitigation Fees for retail developments at reduced rates; and
WHEREAS, the City’s Housing Element Update of the General Plan for the planning period 2023-2031, acknowledges that it is in the City’s interest to ensure adequate housing is available for all income levels, including those who are below the City’s median household income. It lists many goals and policies aimed at facilitating development of affordable housing. The City’s Inclusionary Housing Ordinance also sets forth the City’s commitment to enhancing the public welfare and assuring that further housing development contributes to the attainment of the housing goals of the City by increasing the production of affordable housing units; and WHEREAS, to support and encourage the development of new affordable housing units, in the City and to help implement the aforementioned Housing Element Policies, the City desires to provide a seventy-five percent (75%) reduction for very low and low income affordable units, provided that at least twenty percent (20%) of units in the project are designated as affordable, and a one hundred percent (100%) fee reduction for very 390
low and low units if at least twenty-five (25%) of the units in the project are designated as affordable; and

WHEREAS, pursuant to Government Code Sections 66016, 66016.5, 66018, and 6062a and the FCMC, the City must adopt the updated Mitigation Fees only after notice and public hearing; and
WHEREAS, pursuant to Government Code Sections 66002, 66016.5, 66018, 6062a, a notice of a public hearing on the proposed fee schedule and the adoption of the Nexus Study was published on June 1, 2022 and June 8, 2022 in the Foster City Islander, a newspaper of general circulation; and
WHEREAS, pursuant to Government Code Sections 66019 and 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least thirty (30) days prior to the meeting to those members of the public who filed a written request with the City; and
WHEREAS, at least ten (10) days prior to the public hearing referenced above, the City made available for public inspection information required under Government Code Section 66000, et seq.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FOSTER CITY AS FOLLOWS:

Section 1. Findings. The City Council finds and determines as follows:
a) The above recitals are correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council. b) The Mitigation Fees proposed bear a reasonable relationship to the need for park, transportation, and public safety facilities created by new development.

Section 2. Adoption of Nexus Study. The City Council finds and determines that the Nexus Study complies with California Government Code section 66000 et seq., and is consistent with the General Plan, and hereby approves and adopts the Nexus Study.

Section 3. Adoption of the DIF CIP. The City Council hereby approves and adopts the DIF CIP, included as Appendix Table A-1 in the Nexus Study.

Section 4. Rates for Mitigation Fees. The City Council hereby sets rates for the Parks Facilities Impact Fee, the Transportation Impact Fee, and the Public Safety Impact Fee as shown in attachment Exhibit A, attached hereto and incorporated by this reference. These rates will be incorporated into the Master Fee Schedule. 391
Section 5. Exemption. Pursuant to Government Code Section 65852.2(f)(2), the Mitigation Fees shall not apply to accessory dwelling units of less than 750 square feet.

Section 6. Affordable Housing. The Mitigation Fees for dwelling units designated as affordable, pursuant to FCMC section sections 17.90.020.P and

17.90.020.X will be reduced by seventy-five percent (75%) for very low and low income affordable units, provided that at least twenty percent (20%) of units in the project are designated as affordable, and reduced by one hundred percent (100%) for very low and low units if at least twenty-five (25%) of the units in the project are designated as affordable.

Section 7. Effective Date. This Resolution shall take effect immediately. In accordance with Government Code Section 66019, the updated Mitigation Fees, set forth in Exhibit A, shall be in full force and effect 60 days after the adoption of this Resolution and shall be published or posted as required by law.

Section 8. Environmental review. The City Council finds that the adoption of the amendments to the Parks Impact Fee Ordinance are not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because the amendments do not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and the amendments create government funding mechanisms which do not involve any commitment to any specific project. They are also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per Section 15061(b)(3).

No specific park projects are associated with these amendments to the Parks Impact Fee Ordinance. The proposed project is policy-oriented and would establish a park standard and create a funding mechanism for future park development. When and if specific park projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice.

Section 9. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Resolution be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Resolution.

The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrase, or clauses be declared unconstitutional on their face or as applied.
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PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City on at the regular meeting held on the 20th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN
__________________________

RICHA AWASTHI, MAYOR
ATTEST:
_____________________________

PRISCILLA SCHAUS, CITY CLERK
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EXHIBIT A
Note: A seventy-five percent (75%) reduction will be applied for very low and low income affordable units, provided that at least twenty percent (20%) of units in the project are designated as affordable, and a one hundred percent (100%) fee reduction will be applied for very low and low units if at least twenty-five (25%) of the units in the project are designated as affordable.

Note: A seventy-five percent (75%) reduction will be applied for very low and low income affordable units, provided that at least twenty percent (20%) of units in the project are designated as affordable, and a one hundred percent (100%) fee reduction will be applied for very low and low units if at least twenty-five (25%) of the units in the project are designated as affordable.
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RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

ADOPTING THE NEXUS STUDY AND SETTING CHARGES FOR THE COMMERCIAL

LINKAGE FEE

CITY OF FOSTER CITY
WHEREAS, the Foster City Municipal Code (“FCMC”) imposes upon new nonresidential development the requirement to pay an Affordable Housing Commercial Linkage Fee (FCMC Ch. 17.88) (referred to herein as “Commercial Linkage Fee”); and WHEREAS, FCMC Section 17.88.030 empowers the City Council to establish the amount of the Commercial Linkage Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and that demonstrates the reasonable relationship between the need for park facilities and the type of development projects on which the fee will be imposed; and
WHEREAS, the City contracted with Economic & Planning Systems (EPS) to perform studies for each of the new Mitigation Fees demonstrating the reasonable relationship between the need for each fee and the type of development on which each fee will be imposed and has determined amounts for each fee based on the reasonable relationship between each fee and the type of development project on which the fee will be imposed; and
WHEREAS, development of new commercial projects requires employees to serve the needs of the new development, many of which earn incomes inadequate to pay for market rate housing; and
WHEREAS, because affordable housing is in short supply within the City, these employees might otherwise be forced to live in less-than-adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing within the City, or commute ever-increasing distances to their jobs from housing located outside the City, thereby harming the City’s ability to attain goals articulated in the City’s General Plan; and
WHEREAS, to ensure that future development projects mitigate their impact on the need for affordable housing in the City and to ensure that any adopted commercial 395
lodging linkage fees do not exceed the actual affordable housing impacts attributable to the development projects to which the fees relate, the City contracted with Economic & Planning Systems, Inc. to complete a Commercial Linkage Nexus Study, dated May 24, 2022 (“CLF Nexus Study”), a copy of which is attached to the staff report and is hereby incorporated by reference; and
WHEREAS, the CLF Nexus Study employs widely used, appropriate methodology to determine the maximum amount needed to fully mitigate the burdens created by commercial development on the need for affordable housing; and WHEREAS, the Nexus Study establishes that there is a reasonable relationship between the amount of the proposed Commercial Linkage Fee and the impacts of new commercial development on the need for affordable housing; and WHEREAS, the Nexus Study has found that there is a reasonable relationship between the creation of jobs caused by the construction of new commercial development and the demand for very low, low, and moderate-income housing for new employees; and
WHEREAS, the Commercial Linkage Fee revenues will be placed in a separate fund to be used solely to increase the supply of housing affordable to very low, low, and moderate-income employees; and
WHEREAS, the CLF Nexus Study identifies the City’s existing level of affordable housing services, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate; and WHEREAS, the CLF Nexus Study includes information that supports the City’s actions, as required by subdivision (a) of Section 66001 of the Government Code; and WHEREAS, the CLF Nexus Study includes discussion of the City’s capital improvement plans for affordable housing, which satisfies the requirements of subdivision (a)(6) of Section 66016.5 of the Government Code; and WHEREAS, the CLF Nexus Study was presented to the City Council; and WHEREAS, the CLF Nexus Study calculates the Commercial Linkage Fees that can be charged on new development, and therefore, the City Council may adopt reduced fees for all development, certain classes of projects, or certain land use categories if doing so effectuates a policy of the City; and 396
WHEREAS, pursuant to Government Code Sections 66016, 66016.5, 66018, and 6062a and the FMC, the City must adopt the updated Commercial Linkage Fees only after notice and public hearing; and
WHEREAS, pursuant to Government Code Sections 66002, 66016.5, 66018, 6062a, a notice of a public hearing on the proposed fee schedule and the adoption of the Nexus Study was published on June 1, 2022 and June 8, 2022 in the Foster City Islander, a newspaper of general circulation; and
WHEREAS, pursuant to Government Code Sections 66019 and 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least thirty (30) days prior to the meeting to those members of the public who filed a written request with the City; and
WHEREAS, at least ten (10) days prior to the public hearing referenced above, the City made available for public inspection information required under Government Code Section 66000, et seq.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FOSTER CITY AS FOLLOWS:

Section 1. Findings. The City Council finds and determines as follows:
a) The above recitals are correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council. b) The Commercial Linkage Fees proposed bear a reasonable relationship to the need for affordable housing facilities created by the new development.

Section 2. Adoption of CLF Nexus Study. The City Council finds and determines that the CLF Nexus Study complies with California Government Code section 66000 et seq., and is consistent with the General Plan, and hereby approves and adopts the CLF Nexus Study.

Section 3. Rates for Commercial Linkage Fees. The City Council hereby sets rates for the Commercial Linkage Fee as shown in attachment Exhibit A, attached hereto and incorporated by this reference. These rates will be incorporated into the Master Fee Schedule.

Section 4. Effective Date. This Resolution shall take effect immediately. In accordance with Government Code Section 66019, the updated Mitigation Fees, set forth in Exhibit A, shall be in full force and effect 60 days after the adoption of this 397
Resolution and shall be published or posted as required by law.

Section 5. Environmental review. The City Council finds that the adoption of the amendments to the Parks Impact Fee Ordinance are not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because the amendments do not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and the amendments create government funding mechanisms which do not involve any commitment to any specific project. They are also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per Section 15061(b)(3).

No specific park projects are associated with these amendments to the Parks Impact Fee Ordinance. The proposed project is policy-oriented and would establish a park standard and create a funding mechanism for future park development. When and if specific park projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice.

Section 6. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Resolution be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Resolution.

The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrase, or clauses be declared unconstitutional on their face or as applied.
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PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City on at the regular meeting held on the 20th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN
__________________________

RICHA AWASTHI, MAYOR
ATTEST:
_____________________________

PRISCILLA SCHAUS, CITY CLERK
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EXHIBIT A
Foster City Commercial Linkage Fee Alternative 2ProposedLand Use Commercial Linkage FeeNon-Residential (per Sq.Ft.)Office (per Sq. Ft.) $36.80Retail (per Sq. Ft.) $6.00Industrial (per Sq. Ft.) $36.80Hotel (per Sq. Ft.) $12.00Source: Economic & Planning Systems 400

Report
Foster City Comprehensive
Development Impact Fee Nexus
Study

Prepared for:

City of Foster City

Prepared by:

Economic & Planning Systems, Inc.

EPS #211040

May 2022
401

Table of Contents

Introduction ................................................................................................. 4 Legal Context ............................................................................................... 4 Summary of Maximum Allowable Fees .............................................................. 6 Estimated DIF Revenues Through Build-Out ...................................................... 7

Summary of Methodology ............................................................................... 8 Demographic and Land Use Assumptions .......................................................... 9

Future Parks Needs and Costs ....................................................................... 14 Cost Allocation and Parks Fee Calculation ....................................................... 16

Public Safety Capital Needs, Cost Estimates, and Cost Allocations ...................... 18 Public Safety Fee Calculations ....................................................................... 19

Transportation Capital Needs, Cost Estimates, and Cost Allocations .................... 21 Transportation Fee Calculations ..................................................................... 23

Nexus Findings ........................................................................................... 25 Summary of DIF Calculations ........................................................................ 26

Fee Amount and Collection ........................................................................... 29 Fee Credits, Reimbursements, and Exemptions ............................................... 30 Annual Review, Accounting, and Updates ........................................................ 30

402
List of Tables
Table 1 Summary of Maximum Fee Calculations ................................................... 6 Table 2 Revenue Projections and Need for Outside Funding .................................... 7 Table 3 Existing Development and Development at Buildout ................................. 10 Table 4 Service Population Factor Estimate ........................................................ 11 Table 5 Forecasted 2040 Service Population Estimate .......................................... 12 Table 6 Average Household Size and Density Assumptions ................................... 13 Table 7 Foster City Existing Park Inventory and Service Level ............................... 14 Table 8 Park Facility Future Needs Calculation .................................................... 15 Table 9 Maximum Parks Fee Calculation ............................................................ 17 Table 10 Public Safety Capital Cost and Allocation Summary .................................. 19 Table 11 Public Safety Fee Calculation ................................................................ 20 Table 12 Transportation Service Population Estimate............................................. 22 Table 13 Transportation Capital Cost and Allocation Summary ................................ 23 Table 14 Transportation Fee Calculation .............................................................. 24 Table 15 DIF Calculation Summary for All Fee Categories ...................................... 28 Appendix A:

Appendix Table A-1: D evelopment Impact Fee Capital Improvement Plan List Appendix Table A-2: Public Safety Fee Calculation
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Introduction and Results
Introduction
This Nexus Report is designed to provide the City of Foster City with the necessary technical documentation to support the adoption of a comprehensive Development Impact Fee (DIF) program. It has been prepared by Economic & Planning Systems, Inc. (EPS), with technical support from Fehr & Peers for transportation as well as input from City of Foster City staff.

Impact fees are one-time charges on new development collected and used by jurisdictions (e.g., a City or County) to cover the cost of capital facilities and infrastructure needed to serve new residential and commercial growth. This Nexus Report provides a legal basis for requiring payment of a development impact fee consistent with Mitigation Fee Act (AB 1600/ Government Code Section 66000 et seq.) and subsequent related legislation. The DIF Program must be approved by the City Council and will be effective 60 days following the City’s adoption of the fees.

This Report is designed to support a comprehensive DIF program that will generate funding to support a range of capital improvements necessitated by new growth in the City. It provides the nexus arguments and associated fee calculations for the maximum fees the City can charge for the facilities described herein. The calculated fees are proposed to be collected on a City-wide basis given the broad scope of capital improvements included in this study. While the City may elect to charge lower fees for particular land uses, areas of the city, or across the board, it should consider the implications of doing so on funding for the identified improvements.

Foster City currently has an Quimby Act fee for parkland acquisition and an affordable housing commercial linkage fee. Additionally, the City is undertaking a parallel effort to update its commercial linkage fees.

Legal Context
This Nexus Study is designed to provide the necessary technical analysis to support the Foster City DIF program to be established by a City Ordinance and implemented by Resolution. The Mitigation Fee Act allows the City to adopt, by resolution, the citywide DIF program consistent with the supporting technical analysis and findings provided in this Nexus Report. The Resolution approach to setting the fee allows periodic adjustments of the fee amount that may be necessary over time, without amending the enabling ordinance.

Impact fee revenues are used to cover the cost of constructing capital and infrastructure improvements required to serve new development and growth in the area in which they apply. As such, impact fees must be based on a reasonable nexus, or connection, 404
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between new development and the need for specific capital facilities and improvements.

Impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. In addition, impact fee revenue cannot be collected or used to cover the cost of preexisting infrastructure needs or deficiencies.

In establishing, increasing, or imposing a fee as a condition for the approval of a development project, Government Code 66001(a) and (b) require a local agency to:

1. Identify the purpose of the fee;

2. Identify how the fee is to be used;

3. Determine how a reasonable relationship exists between the fee use and type of development project for which the fee is being used;

4. Determine how the need for the public facility relates to the type of development project for which the fee is imposed; and

5. Show the relationship between the amount of the fee and the cost of the public facility.

In September 2021, the State of California adopted Assembly Bill (AB) 602, which includes several new requirements related to the development and implementation of impact fee programs. The key provisions related to the calculations documented in this Nexus Report are summarized below.
• Capital Improvement Plan: AB 602 requires that jurisdictions adopt a capital improvement plan as part of the nexus study process. This adoption can occur at the same time as the fee ordinance adoption. Accordingly, this Nexus Report relies on a Foster City DIF Long-Term Capital Improvement Plan (Foster City DIF CIP) to be approved by the City Council in conjunction with the DIF Program. The Foster City DIF CIP presented in this Nexus Report is derived from the capital improvements identified as part of the Nexus Report and is attached as Appendix Table A-1.
• Explanation of Level of Service and Fee Increase: AB 602 requires that when applicable, the nexus study identifies the existing level of service for each public facility, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate. Since Foster City does not currently have impact fees for Parks, Public Safety, or Transportation, the calculations presented herein provide justification for entirely new fees rather than an increase over an existing amount. This Nexus Report relies on service standards developed in consultation with City staff, based on City planning documents, and with reference to the existing capital facilities and improvements in the City as appropriate and documented herein. The level of service is articulated in the CIP provided in Appendix A-1.
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All State statutory requirements have been followed in establishing this DIF, as documented in subsequent chapters. Chapter 6 summarizes the specific findings that explain or demonstrate this nexus. If the DIF is adopted, this Nexus Report and the technical information it contains should be maintained and reviewed periodically by the City to ensure its accuracy and to enable the adequate programming of funding sources.

To the extent that infrastructure requirements, costs, and development potential changes over time, the DIF will need to be updated. AB 602 requires the DIF to be updated at least every 8 years. Further information on Program implementation and administration considerations is provided in Chapter 7.

Summary of Maximum Allowable Fees
Table 1 summarizes the City’s maximum allowable development impact fee schedule for the capital facility and equipment needs as evaluated in this Nexus Study. The DIF revenues will be used to fund:
• Parks Facilities – this fee will fund parkland and trail improvements, and recreation facility improvements necessary to accommodate growth.

• Public Safety Facilities – this fee will fund police and fire capital facilities and equipment (e.g., vehicles) necessary to accommodate growth.

• Transportation Improvements – this fee will fund needed additions and improvements to the City’s transportation infrastructure to accommodate future transportation volumes associated with new development. These improvements will include infrastructure that supports both vehicles as well as transit, pedestrian, bicycle, and other modes.

Table 1 Summary of Maximum Fee Calculations

Total
Public Maximum
Land Use Parks Safety Transportation Fee*
Residential (per unit)
Single Family Residential $14,926 $1,594 $2,123 $18,644 Multifamily Residential $11,639 $1,243 $1,656 $14,538
Non-Residential (per Sq.Ft. or Room)
Office (per Sq. Ft.) $10.71 $1.14 $3.62 $15.48
Retail (per Sq. Ft.) $5.95 $0.64 $2.01 $8.60
Industrial (per Sq. Ft.) $3.51 $0.38 $1.19 $5.07
Hotel (per Room) $1,071 $114 $362 $1,548
Source: City of Foster City; Fehr & Peers; Economic & Planning Systems *Includes 2 percent administration charge.
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These development impact fees apply to new residential and nonresidential development based on a “fair share” allocation of specified capital facility and equipment costs. As noted above, the City can adopt fees below these maximum nexus-supported levels based on policy considerations. The maximum fee estimates include a 2 percent program administration fee.1
Estimated DIF Revenues Through Build -Out
Table 2 provides an estimate of the total capital facility funding generated by the maximum allowable DIF program through buildout. These revenue projections are based on buildout assumptions described in Chapter 2 of this Report. As shown, the total improvement cost included in the fee program totals $33.4 million. The Parks improvement costs are entirely attributable to new growth, as described in a later section, and as such 100 percent of the improvement costs are included in the fee program. The Public Safety and Transportation costs allocated to the fee program are based on the portion of the improvement costs attributable to new growth.

Table 2 Revenue Projections and Need for Outside Funding

1 The 2 percent administration cost is designed to cover expenses for preparation of the development impact fee and subsequent updates as well as the required reporting, auditing, collection, and other annual administrative costs involved in overseeing the program.

Development impact fee programs throughout California have applied similar administrative charges.

Amount Other
Total Cost of Included In % of Funding Cost
Item Improvements Fee Program Total Cost Required Allocation Formula a b b / (sum of b) c = a - b c / a
Parks $25,434,509 $25,434,509 76% $0 0.0%
Public Safety $21,423,446 $2,716,392 8% $18,707,053 87.3% Transportation $22,200,000 $5,241,566 16% $16,958,434 76.4% Total $69,057,955 $33,392,467 100% $35,665,488 51.6%
Source: City of Foster City; Fehr & Peers; Economic & Planning Systems Amount Allocated to DIF
Program by Buildout1
[1] Represents cost of DIF-related improvements allocated to new development. Actual DIF revenues will depend on the amount, type, and timing of development.

Additional Funding
Needed
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DIF Methodology and Key Assumptions
This section provides a brief overview of the nexus methodology and key assumptions used in this DIF Nexus Report. It also summarizes the demographic and land use projections underlying the fee. Subsequent chapters provide more detailed calculations for each DIF category.

Summary of Methodology
While the nexus methodology employed in this study varies by fee category as appropriate given the range of capital facilities and improvements covered, there are basic steps common to all. Specifically, for each fee category, EPS has applied the following general steps to calculate the nexus-supported fee amounts:

1. EPS estimated existing and future population and employment in Foster City through buildout of the current General Plan (in the 2040 - 2042 timeframe) using a variety of third-party sources, as described in the subsequent section.

2. The EPS Team identified the universe of new infrastructure and capital facility improvements needed to serve both existing and future residents and employees.

These needs were based on interviews with City staff and analysis of existing city facility capacity and service standards.

3. EPS consultant team developed cost estimates for the capital facility improvements described in step 2 above. These costs estimates were developed based on information provided by City departmental staff as well as additional research and in-house resources.

4. EPS allocated the capital facility costs identified in step 3 above between existing and new development to determine the share included in the DIF program. These allocation shares were determined in a variety of ways depending on improvement, available data, and City guidance. In cases where the facility or improvement is entirely triggered by new development, the costs are allocated 100 percent to the DIF program. In cases where the improvement is expected to service both the existing population and the future population equally, the share of costs attributable to new development is based on the City’s current versus future service population.

5. Once costs have been allocated between new and existing development, they are further distributed among residential and commercial uses to arrive at a cost per resident and a cost per employee. This distribution is based on the proportion of total forecasted service population that is composed of residents and employees, respectively.

6. Once costs are allocated to a “cost per resident” and “cost per employee” basis, they are multiplied by the people per household for each residential fee category or by the employment density for each commercial fee category. 408
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7. A 2 percent charge is added to the fee cover the cost of administering the fee program.

Demographic and Land Use Assumptions
This section describes the demographic and land use assumptions utilized in this study for both existing and future General Plan buildout conditions (i.e., the 2040 – 2042 timeframe). The estimates are used for the following primary purposes in the fee calculation:
• Existing population and employment levels are used to estimate service levels for specific capital improvement categories as well as to ascertain existing needs relative to existing standards.
• Future population and employment growth in the City are the basis for determining future capital facility needs and apportioning these costs between existing and new development.
• Estimates related to population and employment density (e.g., persons per household or employees per square foot) are used to allocate costs between land use categories.

Population and Employment Growth Projections
The nexus analysis relies on estimated population and employment growth likely to occur by buildout in early 2040. Given the variety of potential outcomes, the projections are based on the average annual growth rates from three (3) third-party sources: (1) Association of Bay Area Governments (ABAG); (2) Foster City Community Development Department Projections 2040; and (3) the City / County Association of Governments of San Mateo County (C/CAG) transportation Model.2 EPS did not analyze specific projects “in the pipeline” at the local level, as such projects are, at this point, largely speculative and do not cover all years in the planning horizon.

As summarized in Table 3, this approach results in a total population of 36,623 and total employment of 26,638 at buildout. This equates to an increase of 3,434 residents and 3,951 jobs, representing a 10.3 percent and 17.4 percent increase over existing conditions, respectively.

2 The existing population and employment represent an average of the three sources described above.
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Table 3 Existing Development and Development at Buildout

Service Population Calculations
The DIF is largely predicated on calculations that translate the population and employment projections provided above into estimates of existing and future “service populations.” The “service population,” in turn, is derived from assumptions that compare residents and employees based on the relative service demands or typical service profiles of each (e.g., amount of time spent in the city, likely utilization of specific infrastructure).

While the service population characterization can differ by infrastructure category, in cases where detailed estimates are not available, EPS has relied upon a default service population calculation. This calculation is based on the City’s existing “daytime population” as derived using the City’s existing residents, employees, and commute patterns for each to estimate the relative time spent within the City. This approach is used to derive an employee to resident equivalency factor to allocate costs between existing and new growth and between residential and commercial development.

As illustrated in Table 4, the City’s existing population, employment, and commute patterns suggest a total service population of 42,740. The service population is composed of 33,189 residents and 9,552 employees, with each employee equivalent to .421 Avg. Ann.

Item 2020 2040 # % Growth Rate
ABAG
Population 33,140 39,070 5,930 17.9% 0.89%
Households 13,055 15,110 2,055 15.7% 0.79%
Jobs 23,700 27,250 3,550 15.0% 0. 75%
Foster City CDD
Population 33,033 34,439 1,406 4.3% 0.21%
Households 13,567 15,720 2,153 15.9% 0.79%
Jobs 19,573 26,045 6,472 33.1% 1. 65%
C/CAG1
Population 33,393 36,360 2,967 8.9% 0.44%
Households N / A N / A N / A N / A N / A
Jobs 24,788 26,620 1,832 7.4% 0. 37%
Average
Population 33,189 36,623 3,434 10.3% 0.52%
Households 13,311 15,415 2,104 15.8% 0.79%
Jobs 22,687 26,638 3,951 17.4% 0. 87%
Source: ABAG; Foster City; C/CAG; Economic & Planning Systems [1] C/CAG estimates provided only for 2015 and 2040. 2020 values were interpolated assuming linear growth.

Growth 2020-2040
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residents (e.g., the typical service demand of an employee is about 42 percent of a resident).

Table 4 Service Population Factor Estimate

At buildout, the service population is projected to reach 47,838, with new growth accounting for about 10.7 percent of the service population total at that time as shown in Table 5. New residents are estimated to account for approximately 67 percent of the growth in service population while new employees account for the remaining 33 percent.

These proportions are used to allocate costs for many of the facilities included in the DIF, unless otherwise indicated.

Item # %
Employment Status of Foster City
Residents1 Formula: a = b * 33,189 b 1 c = b * c
Not in Labor Force 15,304 46.1% 100% 46.1%
Employed in the City3
1,817 5.5% 50% 2.7%
Employed Outside of the City 16,067 48.4% 67% 32.5%
Total Residents 33,189 100.0% 81.3%
Residence Status of Foster City
Employees1 Formula: a = b * 22,687 b 1 c = b * c
Live in the City3
1,817 8.0% 50% 4.0%
Live Outside the City 20,870 92.0% 33% 30.2%
Total Jobs 22,687 100.0% 34.2%
Employee to Resident Equivalency Factor 4 (34.2% / 81.3%) = 42.1% Service Population Calculation
Amount Attributable to Residents (@ 100%) 33,189 77.7%
Amount Attributable to Employees (@ 42.1%) 9,552 22.3%
Total Service Population 42,740 100.0%
Sources: LEHD OnTheMap 2019; Economic & Planning Systems [2] Represents EPS estimate of how various types of residents and employees relate to each other in terms of demand for City Services. Assumes 5,840 waking hours per year (16 waking hours per day * 365 days per year), and 1,920 working hours per year (40 work hours per week * 48 work weeks per year). Therefore, employees who live outside the City spend 33% of their waking time in the City (1,920 / 5,840) with access to City services, with the inverse (67%) being true for residents who are employed outside of the City. [3] The number of residents who are employed in the City and the number of employees in the City who are residents are the same, representing the same group of unique individuals. This group is reflected both in the Total Residents and the Total Jobs to demonstrate the composition of the totals, with their weighting split evenly between the resident and employee groups.
[4] Equals weighted average of residents divided by weighted average of employees.

Existing Weight2 Weighted
Average
[1] Distributions based on data from U.S. Census (OnTheMap 2019). Total residents and jobs per Table 3 . 411
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Table 5 Forecasted 2040 Service Population Estimate

Land Use Density Assumptions
In addition to the demographic calculations described above, the DIF utilizes assumptions related to population and employment densities by land use type. Specifically, DIF improvement cost estimates per capita or per job are converted to fee rates per unit or square foot based on average persons per household and square foot per employee factors. These assumptions are summarized in Table 6 and rely on data from the U.S.

Census, CoStar, and the City of Foster City.

Buildout
Item # % (2040)2 # %
Employment Status of Foster City Residents
Not in Labor Force 15,304 46.1% 16,888 - -
Employed in the City 1,817 5.5% 2,005 - -
E
mployed Outside of the City 16,067 48.4% 17,730 - -
Total Residents 33,189 100.0% 36,623 3,434 10.3%
Residence Status of Foster City Employees
Live in the City 1,817 8.0% 2,134 - -
Live Outside the City 20,870 92.0% 24,505 - -
Total Jobs 22,687 100.0% 26,638 3,951 17.4%
Service Population Calculation3
Amount Attributable to Residents (@ 100%) 33,189 36,623 3,434 67% Amount Attributable to Employees (@ 42.1%) 9,552 11,215 1,664 33% Total Service Population 42,740 47,838 5,098 100%
Growth Percentage 10.7%
Source: Economic & Planning Systems
Existing1 Net New
[1] Existing Resident and Job totals per Table 3, percent distributions per Table 4. [2] Resident and Job totals per Table 3. Composition based on existing proportions. [3] Amount attributable to Employees per Table 4 .
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Table 6 Average Household Size and Density Assumptions

Item Amount Source
Residential Densities
Persons per Single Family Unit 2.93 ACS 2019 5-Year Estimates Persons per Multifamily Unit 2.29 ACS 2019 5-Year Estimates Employee Densities1
Office (Sq. Ft. per Employee) 200 CoStar Group
Retail (Sq. Ft. per Employee) 360 CoStar Group
Industrial (Sq. Ft. per Employee) 610 CoStar Group
Source: CoStar Group; U.S. Census ACS 2019 5-Year Estimates; City of Foster City; Economic & Planning Systems [2] Assumes rooms average 500 square feet.

City of Foster City - 2015 Commercial
Linkage Nexus Study2Hotel (Employees per Room) 0.5
[1] Employment densities for office and retail were derived from CoStar Group using February 2022 self- reported employment and square footage figures for Foster City office tenants and mid-San Mateo County retail tenants; lodging densities are consistent with the 2015 Nexus Study produced by Strategic Economics/Vernazza Wolfe.
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Parks and Recreation DIF
This Chapter describes the technical methodology for the Parks Facilities fees which includes park facility improvements, walkway and trail improvements, and recreation facilities. The calculations assume that the fee will be assessed on both residential and nonresidential development.

Future Parks Needs and Costs
The amount of new park land improvements and facilities needed to serve future development is calculated by first determining the City’s existing service levels for these facilities. Table 7 shows the inventory of existing parks, walkways/trails, and recreation facilities based on information provided by City staff and establishes the existing service level of these facilities. As shown, the existing recreation acreage service level (which includes both parks and walkways/trails) is 2.81 acres per 1,000 service population. The existing level standard for other recreation facilities, such as community centers, is 1,765 square feet per 1,000 service population.

Table 7 Foster City Existing Park Inventory and Service Level

Item Amount Item A mount
Parks (Acres) Walkways / Trails (Acres)
Arcturus Park 0.75 Levee Pedway 7. 76
Baywinds Park 1.30 Arcturus Walkway 0.09
Boat Park 3.18 Pilgrim Walkway (East) 0.19
Boothbay Park 11.21 Constitution Walkway (North) 0.17
Bridgeview Park 3.20 Pilgrim Walkway (West) 0.73
Catamaran Park 5.88 Constitution Walkway (South) 0.70
Edgewater Park 8.53 Walkway / Trail Acreage 9.64
Erckenbrack Park 3.48
Farragut Park 3. 86 Total Recreation Acreage (Parks + Trails) Full Park 3.14 Parkland Acreage 110. 59
Gateshead Park 0.12 Walkway / Trail Acreage 9.64
Ketch Park 1.60 Total Recreation Acreage 120.23
Killdeer Park 2.42 Existing Recreation Acreage Service Standard1 2.81 Leo J. Ryan Park 20.73 (Acres per 1,000 Service Population) Leo P
ark 0.02
Marlin Park 3.13 Other Facilities (Square Feet)
Pompano Park 0.56 Recreation Center 31, 786
Port Royal Park 3.98 Library and Community Center 34,150 Sea Cloud Park 23.90 VIBE Teen Center 9,500
Shad Park 2.16 Subtotal Other Facilities 75,436
Shorebird Park 3.50 Existing Other Facilities Service Standard1 1,765 Sunfish Park 2.41 (Square Feet per 1,000 Service Population) T
urnstone Park 1.53
Parkland Acreage 110.59
Source: City of Foster City; Economic & Planning Systems [1] Divides total value by a thousandth of current estimated service population of 42,740 per Table 5 . 414
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Table 8 calculates the additional acreage of recreation areas and square feet of park- related facilities that are needed to maintain the existing service levels through 2040, then applies costs to arrive at a total park and recreation facility cost to serve growth. As the City has an existing Quimby In-Lieu Fee which covers parkland acquisition cost, this fee study focuses only on park improvements and includes no land costs in the calculation of the fee levels. The existing service levels per 1,000 service population derived in Table 7 are multiplied by a thousandth of the total net new increase in service population from Table 5. As shown, the City will need to improve an additional 14.34 acres of recreational areas (parkland and walkways/trails) and an additional 8,998 square feet of recreational facilities by 2040 to maintain the current service standard and accommodate anticipated new growth.

Table 8 Park Facility Future Needs Calculation

As shown in Table 8, when the costs for park improvements and park-related facilities (e.g., community centers) are applied to the calculated additional needs required to maintain existing standards, the total park-related cost to serve future growth is $25.4 million. For details on cost estimates, see Appendix Table A-1. Cost for park-related facilities only include construction (i.e., estimates assume no land acquisition is needed).

Item Formula
Implied Citywide Existing Service Standards
Recreation Areas (Acres/1,000 Service Population) a 2.81 per Table 7.

Facilities (Sq. Ft./1,000 Service Population) b 1,765 per Table 7.

Net New Service Population in 2040 c 5,098 per T able 5 .

Additional Needs to Maintain Existing Standard
Recreation Areas d = c * (a / 1,000) 14.34 Acres
F
acilities e = c * (b / 1,000) 8,998 Square Feet
Recreation Areas Costs
Site Prep (e.g., demolition, remediation, grading) 1 $450,000 per Acre Construction1 $750,000 per Acre
Average Park Improvement Cost f $1,200,000 per Acre
R
ecreation Area Acres to be Improved by 2040 d 14.34 Acres Total Park Improvement Cost to Serve Growth g = f * d $17,207,926 Other Facilities Costs
Average Cost per Square Foot of Park-Related Facilities 1 h $914 per Square Foot
Square Feet of Other Facilities to be Constructed by 2040 e 8,998 Square Feet Total Other Facilities Cost to Serve Growth i = h * e $8,226,583 Total Park-Related Cost to Serve Growth g + i $25,434,509 Source: Economic & Planning Systems
Assumption / Value
[1] See Appendix Table A-1.
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Cost Allocation and Parks Fee Calculation
The final steps in the park facility calculation are to allocate costs between residential and nonresidential development to arrive at a cost per resident and per employee (i.e., service population). The per unit service population costs are then multiplied by the resident and employee densities of land uses included in the fee study. The park fee is charged based on both residents and employees as both are assumed to use and benefit from the City’s park facilities (in terms of park utilization, one resident is equivalent to approximately 0.421 employees).

Table 9 allocates the $25.4 million in total DIF park-related capital improvements between residents and employees based on the composition of net new service population by 2040. As shown, of the 5,098 estimated new service population, 67 percent of the costs are attributed to residents (based on a 3,434 increase in population) and 33 percent to employment (based on 3,951 new jobs but discounted based on assumption that the impact of a typical employee on park facilities is about 42.1 percent that of a typical resident). This methodology results in $17.1 million in park-related improvement costs allocated to residents and $8.3 million allocated to employees. Dividing these numbers by the net future growth in residents and employees results in a $4,989 cost per resident and a $2,101 cost per employee.

Table 9 multiplies the future park facility costs per resident and per employee by the assumptions related to persons per household for residential and employees per square foot for commercial land uses (or employees per room for Hotel uses) to arrive at the maximum park fee levels. The amounts shown include a 2 percent administrative fee. 416
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Table 9 Maximum Parks Fee Calculation
Item Residential Non-Residential
Future Residential/ Non-Residential Allocation
% Allocation1
67% 33%
Parkland and Improvement Cost2
$17,134,496 $8,300,013
Net Future Growth3
3,434 residents 3,951 jobs
Cost per Resident or Employee $4,989 $2,101
Land Use
Single Family Residential (per Unit) 2.93 people / unit $14,926 Multifamily Residential (per Unit) 2.29 people / unit $11,639 Office (per Sq.Ft.)5
200 Sq.Ft./Employee $10.71
Retail (per Sq.Ft.)6
360 Sq.Ft./Employee $5.95
Industrial (per Sq.Ft.)7
610 Sq.Ft./Employee $3.51
Hotel (per Room) 0.5 Employee / Room $1,071
*Includes 2% Administrative Fee.

Source: Economic & Planning Systems
[5] Office is defined as any building type designed to accommodate employees of companies that provide administrative, professional, or clerical services. Examples include offices for law, medical, accounting, software, and professional consulting firms.
[6] Retail is defined as any building area designed to accommodate business operators that sell consumer goods and services directly to the public and that is open to the public during business hours. Examples include grocery stores, department stores, and restaurants. [7] Industrial is defined as any building type designed to accommodate activities such as manufacturing, distribution, processing, maintenance, and storage. Examples include manufacturing plants, warehouses, and most research & development uses.
[2] Per Table 8.
[3] Based on total new residents and total new jobs as shown in Table 5 . [4] Per Table 6.

Assumption / Factor
see Table 5
$25,434,509
Building Density4 Maximum Fees*
[1] Based on residential/non-residential allocation of net new service population per Table 5 . 417
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Public Safety DIF
This Chapter describes the technical methodology for calculating the Public Safety fees, which include both Police and Fire. Police services in Foster City are provided by the Foster City Police Department (FCPD), and fire services are provided by the San Mateo Consolidated Fire Department (SMCFD), which serves the cities of Foster City, Belmont, and San Mateo. It is assumed that both residential and nonresidential development will pay the Public Safety fees.

Because the SMCFD serves the residents of three cities, EPS has adjusted the portion of capital facility costs that can be attributed to Foster City. The contributions to the SMCFD budget are 20 percent from Foster City, 20 percent from Belmont, and 60 percent from the City of San Mateo. Accordingly, only 20 percent of the costs of any fire-related items included in the fee program can be attributed to Foster City, and only a portion of that can be attributed to new growth, as described in this section.

Public Safety Capital Needs , Cost
Estimates , and Cost Allocations
The costs associated with public safety activities fall into four categories: vehicle costs, expansions of existing facilities, new facilities, and a new Emergency Operations Center (EOC). EPS, in consultation with FCPD and SMCFD staff, has estimated the costs for specific upgrades and additions needed for these departments to serve new growth in the City. The fire facilities included were identified by SMCFD staff, and the level of service utilized to identify additions required to serve new growth is based on existing inventory and professional judgment. The upgrades and additions include:
• Vehicles and Transportation-Related Equipment: fire engines, patrol cars, and a police motorcycle
• Facility Improvements: police locker room, police evidence room, fire training facility, fire mechanic shop, fire administrative office, and Emergency Operations Center improvements.

Table 10 summarizes the costs of the above items, the percent allocation to new development, and the resulting public safety cost allocated to the fee program. Further details regarding the cost allocation calculations are provided in Appendix Table A-2, with the cost assumptions shown in Appendix Table A-1. As shown, the total Foster City costs of all public safety items sum to $21.4 million, but only $2.7 million of this cost is attributable to new growth and therefore included in the fee program. 418
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Table 10 Public Safety Capital Cost and Allocation Summary

The Facility Improvements item in Table 10 applies a 10.7 percent allocation to new development. This allocation represents the percentage growth in service population by 2040 per Table 5. The calculations used to arrive at the 18.4 percent allocation to new growth assigned to Vehicles and Transportation-Related Equipment represents a combination of factors, including deductions for SMCFD multi-jurisdictional responsibilities, as further detailed in Appendix Table A-2.

Public Safety Fee Calculations
Table 11 allocates the $2.7 million in fair share costs attributed to new service population growth between residential and nonresidential development to arrive at a cost per resident and cost per employee. The public safety cost of $533 per resident and $224 per employee are multiplied by the assumptions related to persons per household for residential and employees per square foot for commercial land uses (or employees per room for Hotel uses) to arrive at the maximum public safety fee levels. The resulting public safety fees by land use shown in Table 11 include a 2 percent administrative fee.

Total Allocation to Cost Allocated
Item Cost1 New Dev.2 to Fee Program
Vehicles and Transportation-
Related Equipment3 $5,567,446 18.4% $1,026,695
Facility Improvements4
$15,856,000 10.7% $1,689,698
Total $21,423,446 $2,716,392
Source: City of Foster City; Economic & Planning Systems [2] The 10.7% allocation represents net new service population growth by 2040 per Table 5 . The

18.4% allocation reflects the fact that a number of vehicle and transportation-related equipment are attributable entirely to new growth (see Appendix Table A-2). [3] Includes Fire Engines, Patrol Vehicles, and a Police Motorcycle. [4] Includes expansion of existing facilities (Police locker room and evidence room), new facilities (Fire training facility, mechanic shop, and administrative office), and Emergency Operations Center Technology / Improvements. See Appendix Table A-2 for details. *Cost allocation details can be found in Appendix Table A-2 . [1] Represents total cost for Foster City, excluding the portions of fire improvement costs that are attributable to other jurisdictions within the San Mateo Consolidated Fire Department (SMCFD) as shown in Appendix Table A-2.
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Table 11 Public Safety Fee Calculation

Description Residential Non-Residential
Future Residential/ Non-Residential Allocation
% Allocation1
67% 33%
Public Safety Improvement Costs2
$1,829,955 $886,437
Net Future Growth3
3,434 residents 3,951 jobs
Cost per Resident or Employee $533 $224
Land Use
Single Family Residential (per Unit) 2.93 people / unit $1,594 Multifamily Residential (per Unit) 2.29 people / unit $1,243 Office (per Sq.Ft.)5
200 Sq.Ft./Employee $1.14
Retail (per Sq.Ft.)6
360 Sq.Ft./Employee $0.64
Industrial (per Sq.Ft.)7
610 Sq.Ft./Employee $0.38
Hotel (per Room) 0.5 Employee / Room $114
*Includes 2% Administration Fee
Source: Economic & Planning Systems
[5] Office is defined as any building type designed to accommodate employees of companies that provide administrative, professional, or clerical services. Examples include offices for law, medical, accounting, software, and professional consulting firms.
[6] Retail is defined as any building area designed to accommodate business operators that sell consumer goods and services directly to the public and that is open to the public during business hours. Examples include grocery stores, department stores, and restaurants.
[7] Industrial is defined as any building type designed to accommodate activities such as manufacturing, distribution, processing, maintenance, and storage. Examples include manufacturing plants, warehouses, and most research & development uses.

Assumption / Factor
[1] Based on residential/non-residential allocation of net new service population per Table 5 . [2] Per Table 10.
[3] Based on total new residents and total new jobs as shown in Table 5 . [4] Per Table 6.
$2,716,392
Building Density4 Maximum Fees*
see Table 5
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Transportation DIF
This section describes the methodology and assumptions used to calculate the transportation component of the Foster City Impact fee program. Transportation consultant Fehr & Peers (F&P) provided research and technical analysis to support the analysis and assumptions used in this fee calculation.

Transportation Capital Needs, Cost
Estimates, and Cost Allocations
Fehr & Peers, in coordination with City staff, developed a list of capital improvement projects for inclusion as part of the Transportation category of the Citywide Development Impact Fee. The projects reflect the goals and objectives in the General Plan Circulation Element, the Pedestrian, Bicycle and Intersection Evaluation Study (2018), and City budget documents, with some project needs determined based on existing service standards as described below. The capital project list has a particular emphasis on improving traffic flow and reducing conflicts for vehicles, bicyclists, and pedestrians through the application of new signalized intersections, upgraded signal infrastructure, and various pedestrian/bicycle safety improvements such as installing new bidirectional curb ramps, curb extensions, and crosswalk improvements.

Table 12 demonstrates the calculation to derive the growth in service population by 2040 as it relates to transportation items. As shown, the fair share allocation to new development used for transportation items is 11.7 percent, which differs from the 10.7 percent used for the other fee categories. This is because the transportation analysis assumes that, per the professional opinion of Fehr & Peers, new residents and employees generate equivalent transportation impacts (the 42.1 percent service population reduction applied to employees in the other fee categories does not apply). The 11.7 percent growth value represents the portion of total employees and residents projected by 2040 that is attributable to growth (7,386 new residents and employees by 2040 divided by 63,261 total residents and employees in 2040).

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Table 12 Transportation Service Population Estimate

Table 13 lists each project, their total costs, and resulting costs allocated to new development and included in the fee program. As shown, the total transportation-related costs included in the fee program sums to $5.2 million. A more detailed list of these items and their descriptions can be found in Appendix Table A-1.

The 11.7 percent allocation to growth is applied to all transportation fee items except for new traffic signals. F&P estimated the need for new traffic signals based on the existing number of signals in the City (i.e., existing service level) multiplied by projected increase in service population. Thus, 100 percent of the traffic signal cost can be attributable to growth. This analysis assumes that the existing number of traffic signals citywide is sufficient to serve the current population and that additional traffic signal needs will increase in proportion to growth. This approach is conservative, because if there are existing deficiencies in the City’s traffic signals, none of those costs are allocated to future development.

Growth
Item 2020 2040 2020 - 2040
Population1
33,189 36,623 3,434
Jobs1
22,687 26,638 3,951
Transportation Service Population2
55,876 63,261 7,386
Growth as a Percent of 2040 Value 11.7%
Source: Economic & Planning Systems
[1] per Table 3.
[2] Represents sum total of Population and Jobs values. 422
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Table 13 Transportation Capital Cost and Allocation Summary

Transportation Fee Calculations
Table 14 allocates the $5.2 million in fair share costs attributed to new growth between residential and nonresidential development to arrive at a cost per resident and cost per employee. As noted, because the transportation category does not apply the service population reduction to employee growth, the percent allocation between residential (46 percent) and non-residential (54 percent) differs from the other fee categories because it represents the actual population ratio of residents and employees. The transportation cost of $710 per resident and per employee is multiplied by the assumptions related to persons per household for residential and employees per square foot for commercial land uses (or employees per room for Hotel uses) to arrive at the maximum transportation fee levels. The resulting public safety fees by land use shown in Table 14 includes a 2 percent administration fee.

Total Allocation to Cost Allocated
Item Cost1 New Dev.2 to Fee Program
New Traffic Signals $3,000,000 100.0% $3,000,000
Citywide Traffic Signal Upgrade $8,000,000 11.7% $933,986 101/92 Interchange $10,000,000 11.7% $1,167, 482
Hovercraft Feasibility $200,000 11.7% $23,350
Pedestrian/Bicycle Improvements $1,000,000 11.7% $116,748 Total $22,200,000 $5,241,566
Source: Fehr & Peers; Economic & Planning Systems
[1] The Public Works Department has indicated that some of the items may be eligible for funding from other sources. However, while the exact amount of outside funding has yet to be determined or secured, Public Works has indicated that it will fall well below the proportion of costs allocated to existing development.
[2] The 11.7% allocation represents net new resident and employee growth by 2040 per Table 12.

Unlike the other fee categories, the allocation used for the transportation items uses the sum of residents and employees with no discount applied for employees. Based on direction from Fehr & Peers, per capita and per employee transportation impacts are roughly equivalent. 423
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Table 14 Transportation Fee Calculation

Description Residential Non-Residential
Future Residential/ Non-Residential Allocation
% Allocation1
46% 54%
Transportation Improvement Costs2
$2,437,310 $2,804,256
Net Future Growth3
3,434 residents 3,951 jobs
Cost per Resident or Employee $710 $710
Land Use
Single Family Residential (per Unit) 2.93 people / unit $2, 123 Multifamily Residential (per Unit) 2.29 people / unit $1,656 Office (per Sq.Ft.)5
200 Sq.Ft./Employee $3.62
Retail (per Sq.Ft.)6
360 Sq.Ft./Employee $2.01
Industrial (per Sq.Ft.)7
610 Sq.Ft./Employee $1.19
Hotel (per Room) 0.5 Employee / Room $362
*Includes 2% Administration Fee
Source: Fehr & Peers; Economic & Planning Systems
[5] Office is defined as any building type designed to accommodate employees of companies that provide administrative, professional, or clerical services. Examples include offices for law, medical, accounting, software, and professional consulting firms.
[6] Retail is defined as any building area designed to accommodate business operators that sell consumer goods and services directly to the public and that is open to the public during business hours. Examples include grocery stores, department stores, and restaurants. [7] Industrial is defined as any building type designed to accommodate activities such as manufacturing, distribution, processing, maintenance, and storage. Examples include manufacturing plants, warehouses, and most research & development uses.
[2] Per Table 13.
[3] Based on total new residents and total new jobs as shown in Table 5 . [4] Per Table 6.

Assumption / Factor
see Table 5
$5,241,566
Building Density4 Maximum Fees*
[1] Based on residential/non-residential allocation of net new population per Table 5 . Note that this allocation differs from other fee categories as these represent total net new growth in residents and employees with no service population discount applied to employees. 424
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Nexus Findings and DIF Summary
This chapter documents the necessary findings for the approval of a comprehensive DIF program for Foster City DIF, as required under Government Code Section 66000 (also referred to as AB1600/the Mitigation Fee Act). Specifically, it demonstrates the "nexus" between new development in Foster City and the infrastructure improvements needed to serve it. It also summarizes the DIF calculations presented in previous chapters.

Nexus Findings
The development impact fees to be collected for all new development in the Plan Area are calculated based on the proportionate share of the total facility use that these land uses represent. With this context, the following findings are made regarding the Fee Program.

Purpose of Fee
Parks
The fee will help provide parks facilities to serve new development in the City of Foster City, including park improvements, walkways and trails improvements, and recreation facilities.

Public Safety
The fee will help provide public safety facilities, vehicles, and other equipment to serve new development in the City of Foster City.

Transportation
The fee will help provide transportation facilities to serve new development in the City of Foster City.

Use of Fees
Parks
Fee revenue will be used to help fund the improvement of parks and walkways / trails, as well as recreation facilities, to serve new development.

Public Safety
Fee revenue will help fund the expansion or construction of Police and Fire facilities, the improvement of existing buildings, and the acquisition of new vehicles and specialized equipment. A representative list of projects and costs is included in Appendix Table A-

1. 425
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Transportation
Fee revenue will be used to fund City transportation improvements and planning efforts, including interchange, pedestrian / bicycle safety, and traffic signal improvements required to serve future growth. A representative list of projects and costs is included in Appendix Table A-1.

Relationship between Use of Fees and Type of Development New development in the City of Foster City will require additional public facilities and capital improvements in order to maintain adequate levels of service. The DIF revenue will be used to fund the “fair share” cost of these facilities and improvements based on the nexus relationships described in previous chapters. While some of the infrastructure improvements included in the DIF Long Term CIP will also benefit existing land uses, the cost allocated to the DIF only reflect the cost attributable to new development.

Relationship between Need for Facility and Type of Project The specific infrastructure improvements identified in this study are designed to accommodate the needs of new development. In addition, the infrastructure is based on the level of service standards and goals that reflect what is currently being providing and / or addresses future needs identified by city staff.

Relationship between Fee Amount and Cost Facilities Attributed to Development
The fee levels calculated in this Nexus Report are based on a fair share cost allocation to new citywide development. Overall, about 11 percent of the costs are allocated to future development, which corresponds with growth as a percentage of future population, with the remainder attributable to existing land uses in the city.

Summary of DIF Calculations
Table 15 summarizes calculations and fee levels for all the DIF categories described in previous chapters. The portion of the total improvement costs included in the DIF are based on each item’s specific allocations between new and existing growth. The DIF costs are then distributed between Residential and Non-Residential land uses based on the composition of net new growth projected by 2040. The costs allocated to residential and non-residential uses are divided by the total net new residents and employees, respectively, to arrive at a cost per resident and cost per employee.

The actual fees are based on the unique land use density assumptions for each land use.

Specifically, the costs per resident are multiplied by the persons per household and the costs per employee are divided by the employee density assumptions (except for hotel, which is multiplied by the employees per room assumption). The maximum allowable fee also includes a 2 percent administrative fee for on-going program implementation, 426
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including collection, periodic updates, reporting requirements, and other activities described in Chapter 7.

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Table 15 DIF Calculation Summary for All Fee Categories

Public
Land Use Assumptions Parks Safety Transportation Total
Total Cost of Improvements $25,434,509 $21,423,446 $22,200,000 $69,057,955 Cost Allocated to New Development / DIF $25,434,509 $2,716,392 $5,241,566 $33,392,467 Cost Allocation between:

Residential $17,134,496 $1,829,955 $2,437,310 $21,401,761 Non-Residential $8,300,013 $886,437 $2,804,256 $11,990,705 Total Net New:

Residents 3,434
Employees 3,951
Cost per Service Population
per Resident $4,989 $533 $710
per Employee $2,101 $224 $710
Residential Fee (per unit)* Density
Single Family Residential 2.93 $14,926 $1,594 $2,123 $18,644 Multifamily Residential 2.29 $11,639 $1,243 $1,656 $14,538 Non-Residential Fee (per Sq.Ft. or Room)*
Office (per Sq. Ft.) 200 $10.71 $1.14 $3.62 $15.48
Retail (per Sq. Ft.) 360 $5.95 $0.64 $2.01 $8.60
Industrial (per Sq. Ft.) 610 $3.51 $0.38 $1.19 $5.07
Hotel (per Room) 0.5 $1,071 $114 $362 $1,548
Source: City of Foster City; Fehr & Peers; Economic & Planning Systems *Includes 2 percent administration charge.
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DIF Implementation and Administration
The proposed Foster City DIF Program is anticipated to be adopted by the City of Foster City through an ordinance establishing and authorizing collection of the fee. The City will also adopt a resolution approving the DIF Long-Term Capital Improvement Program and establishing the fee amount. This chapter describes the additional implementation and administrative issues and procedures to be addressed in the Fee Program.

Fee Amount and Collection
As noted, the actual fee levels by land use will need to be approved by the City Council but cannot exceed the maximum allowable fees calculated herein. Other fee collection considerations are described below.

Applicable Land Uses
All new development that occurs within the City of Foster City, except as specifically exempted by the DIF Ordinance, shall pay the DIF based on an approved Fee Schedule made available by the City and updated periodically. The amount will vary by land use, as described in the Nexus Study. While the maximum fee amount will be determined by the AB 1600 Nexus Study, the City may elect to charge less for a variety of reasons.

It is possible that certain projects may not fit neatly into the land use categories defined in the fee schedule. In cases where such ambiguity exists, the City Manager or an authorized representative will need to make a determination as to the applicable fees.

Fee Escalation
The City Fee Ordinance will allow for an automatic adjustment of the DIF to keep pace with inflation adjusted increases in construction cost. This allows the fee level to keep pace with inflation without requiring an annual approval process. This adjustment should be based on a trusted cost index published annually. There are a variety of sources available, including Engineering News Record (ENR), the Bureau of Labor Statistics (BLS) and Saylor, among others. ENR’s CCI has been published consistently every month since 1913 for 20 U.S. cities and a national average of the 20 cities. As such, it is one of the most reliable and consistent indices that track trends in construction costs.

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Fee Credits, Reimbursements, and
Exemptions
Impact fee programs frequently allow developers subject to the fee to obtain fee credits, reimbursements, and/or adjustments under certain and limited circumstances as determined by the City’s Impact Fee Ordinance. Fee credits, reimbursements, or adjustments are generally not allowed by right but rather should be subject to discretionary review and approval by the City to ensure that they are warranted and appropriate.

Annual Review, Accounting, and Updates
Annual review
This Nexus Study and the technical information it contains should be maintained and reviewed periodically by the City as necessary to ensure DIF accuracy and to enable the adequate programming of funding sources. To the extent that improvement requirements, costs, or development potential changes over time, the DIF will need to be updated. Specifically, AB 1600 (at Gov. C. §§ 66001(c), 66006(b)(1)) stipulates that each local agency that requires payment of a fee make specific information available to the public annually within 180 days of the last day of the fiscal year. This information includes the following:
• A description of the type of fee in the account
• The amount of the fee
• The beginning and ending balance of the fund
• The amount of fees collected and interest earned
• Identification of the improvements constructed
• The total cost of the improvements constructed
• The fees expended to construct the improvement
• The percent of total costs funded by the fee
If sufficient fees have been collected to fund the construction of an improvement, the agency must specify the approximate date for construction of that improvement. Because of the dynamic nature of growth and infrastructure requirements, the City should monitor development activity, the need for infrastructure improvements, and the adequacy of the fee revenues and other available funding. Costs associated with this monitoring and updating effort are included in the Impact Fee as an administrative charge.

Surplus Funds
AB 1600 also requires that if any portion of a fee remains unexpended or uncommitted in an account for five years or more after deposit of the fee, the City Council shall make findings: (1) to identify the purpose to which the fee is to be put, (2) to demonstrate a 430
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reasonable relationship between the fee and the purpose for which it was charged, (3) to identify all sources and amounts of funding anticipated to complete financing of incomplete improvements, and (4) to designate the approximate dates on which the funding identified in (3) is expected to be deposited into the appropriate fund.

If adequate funding has been collected for a certain improvement, an approximate date must be specified as to when construction on the improvement will begin. If the findings show no need for the unspent funds, or if the conditions discussed above are not met, and the administrative costs of the refund do not exceed the refund itself, the local agency that has collected the funds must refund them.

DIF Updates
This fee program is based on growth forecasts from the (1) Association of Bay Area Governments (ABAG); (2) Foster City Community Development Department Projections 2040; and (3) the City / County Association of Governments of San Mateo County (C/CAG) transportation Model. The amount of development that will occur by 2040 may deviate from the projections assumed in the Fee Program. These factors may affect the appropriate fee level needed to cover necessary infrastructure. Accordingly, the Nexus Study should be updated periodically to account for these potential changes. Ideally this would occur every five (5) years, however, under state law, the fees must be updated at least every eight (8) years.

The DIF program should also include an automatic annual adjustment to account for inflation. This adjustment will be based on data from the Engineering News Record Construction Cost Index.
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APPENDIX A:

Appendix Table A-1:

Appendix Table A-2:

Development Impact Fee
Capital Improvement Plan List
Public Safety Fee Calculation
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Appendix Table A-1
Development Impact Fee Capital Improvement Plan (CIP) List Foster City Development Impact Fee Study; EPS #211040
Total Cost Anticipated Cost
Improvement Item (Unallocated) Location Source
Public Safety
Fire Engines 22 Engines $26,690,547 N / A EPS with Fire Dept. Confirmation Patrol Vehicles 3 Vehicles $192,337 N / A Personal Communication with Foster City Police Dept.

Traffic Motorcycles 1 Motorcycles $37,000 N / A Personal Communication with Foster City Police Dept.

Police Locker Room Expansion 1,000 $500,000 Existing Location EPS with Police Dept. Confirmation Police Evidence Room Improvements 1 $100,000 N / A EPS with Police Dept. Confirmation Fire Training Facility 1 $70,000,000 TBD within Foster City EPS Assumption from similar Bay Area project (City of Hayward Fire Station No. 6 & Training Center)
Fire Mechanic Shop 10,000 Sq. Ft. $2,120,000 TBD within Foster City Light Industrial / Warehouse averaged construction cost per RLB 2020 Construction Cost Report inflated to 2022$ using Engineering News-Record Construction Cost Index.

Fire Administrative Office 10,000 Sq. Ft. $3,960,000 TBD within Foster City Secondary Office averaged construction cost per RLB 2020 Construction Cost Report (for San Francisco) inflated to 2022$ using Engineering News-Record Construction Cost Index.

Emergency Operations Center Technology/Equipment 1 $40,000 TBD within Foster City Personal Communication with Foster City Police Dept.

Total Public Safety $103,639,883
Transportation
New Traffic Signals 4 $3,000,000 TBD depending on new growth areas Fehr & Peers Communication with Foster City Public Works Dept.

Citywide Traffic Signal Upgrade 1 $8,000,000 Citywide Foster City Final Budget (Fiscal Year 2021-2022, page 510); Bicycle, Pedestrian, Intersections Evaluation Study (2018).
101/92 Interchange 1 $10,000,000 101/92 Interchange Fehr & Peers Communication with Foster City Public Works Dept.

Hovercraft Feasibility 1 $200,000 N / A (planning) Fehr & Peers Communication with Foster City Planning Dept.

Pedestrian/Bicycle Improvements
Sharrows on Foster City Blvd 1 Foster City Blvd
Bicycle Facilities on Beach Park Blvd 1 Beack Park Blvd Bicycle Facilities on Edgewater Blvd 1 Edgewater Blvd
Bicycle Facilities on Gull Ave 1 Gull Ave
Bicycle Facilities on Swordfish St 1 Swordfish St
Curb Extensions / Bulbouts 1 Various Citywide
New Roundabouts 1 Various Citywide
Reduce Curb Radii 1 Various Citywide
High Visibility Crosswalks 1 Various Citywide
Signalize Crossing at Foster City Blvd / Polynesia Dr 1 Foster City Blvd / Polynesia Dr Total Pedestrian/Bicycle Improvements 10 $1,000,000 Fehr & Peers Total Transportation $22,200,000
Parks and Recreation
Site Prep (e.g., demolition, remediation, grading) 14.34 Acres $6,452,972 EPS with Parks Dept. Confirmation Construction 14.34 Acres $10,754,954 EPS with Parks Dept. Confirmation Recreation Facilities1 8,998 Sq. Ft. $8,226,583 Based on $685/SF Community Center cost from 2014 Antioch Development Impact Fee Study, inflated to 2022$ (rounded) per Engineering News-Record Construction Cost Index.

Total Parks and Recreation $25,434,509
Source: Economic & Planning Systems
Units
Number of
[1] The Recreation Facility square footage displayed here is derived on a per-service population basis. The square footage represents the amount needed to maintain the existing service standard based on the existing square footage of recreation facilities and the projected increase in service population by 2040. The total cost of $8.23 million shown therefore represents the cost fully attributable to new development and thus included in the fee program. 433
Appendix Table A-2
Public Safety Fee Calculation Detail
Foster City Development Impact Fee Study; EPS #211040
Cost per Unit Total Cost Foster City Foster City Allocation Cost Allocated Description Unit1 Count (Unallocated) Share of Cost2 Total Cost to New Dev. to Fee Program Vehicles and Transportation-Related Equipment
Fire Engines to serve New Growth $1,200,000 1 3 $1,278,782 20% $255,756 100.0% $255,756 Fire Engines to serve City by 2040 (Replacement) $1,200,000 21 4 $25,411,765 20% $5,082,353 10.7% $541,602 Patrol Vehicles $75,000 3 5 $192,337 100% $192,337 100.0% $192,337 Traffic Motorcycles $37,000 1 $37,000 100% $37,000 100.0% $37,000 Subototal Vehicles / Transportation Equipment $26,919,883 $5,567,446 18.4% $1,026,695 Expansion of Existing Facilities
Police Locker Room Expansion $500,000 1 $500,000 100% $500,000 10.7% $53,283 Police Evidence Room Improvements $100,000 1 $100,000 100% $100,000 10.7% $10,657 Subtotal Expansion of Existing Facilities $600,000 $600,000 10.7% $63,939 New Facilities
Fire Training Facility $70,000,000 1 $70,000,000 20% $14,000,000 10.7% $1,491,913 Fire Mechanic Shop $2,120,000 1 $2,120,000 20% $424,000 10.7% $45,184 Fire Administrative Office $3,960,000 1 $3,960,000 20% $792,000 10.7% $84,400 Subtotal New Facilities $76,080,000 $15,216,000 10.7% $1,621,496 Emergency Operations Center Technology/Equipment $40,000 1 $40,000 100% $40,000 10.7% $4,263 Public Safety Overall $103,639,883 $21,423,446 $2,716,392 Source: Economic & Planning Systems
[1] Costs from Appendix Table A-1. All building cost items assume no land acquisition costs. [2] Only 20% of all fire-related items can be attributed to Foster City based on multi-jursidictional shares for SMCFD funding. [3] There are currently 10 fire engines to serve the existing population. With a projected increase in service population of 10.7% by 2040, an additional 1.07 fire engines will be required by 2040 (10 * 0.107) to maintain existing service level.
[4] There are currently 10 fire engines, each with an average life cycle of 8.5 years (7 - 10 year replacement schedule). There are 18 years between now and the year 2040, which means each existing engine will need to be replaced 2.1 times (18 years / 8.5 life cycle years = 2.1). Multiplying 10 engines by 2.1 required replacements between now and 2040 results in t he rounded value of 21 fire engines shown above.
[5] There are currently 43 total officers, equating to a service standard of 1.01 officers per 1,000 service population (43 officers / (42,740 service population / 1,000)). There is a project ed service population increase of 5,098 by 2040, resulting in 5.13 additional officers needed by 2040 to serve new growth (1.006 officers per 1,000 service population * 5.098 thousands of new service population). There are 0.5 vehicles needed per officer, resulting in 2.56 new new vehicles needed by 2040. Value shown is rounded. 434

Report
Commercial Linkage
Fee Nexus Study

Prepared for:

City of Foster City

Prepared by:

Economic & Planning Systems, Inc.

May 24, 2022

EPS #211040
435

Table of Contents

1. INTRODUCTION AND EXECUTIVE SUMMARY ...................................................................... 1 Background ............................................................................................................ 1 Key Findings .......................................................................................................... 1 Sources ................................................................................................................. 2 Organization of Report ............................................................................................. 3

2. REQUIRED NEXUS FINDINGS FOR FEE PROGRAM ............................................................... 4 Background ............................................................................................................ 4 Authority ............................................................................................................... 4 Purpose of Fee ....................................................................................................... 5 Use of Fee ............................................................................................................. 5 Relationship between Use of Fee and Type of Development ........................................... 5 Relationship between Demand for Affordable Housing and Type of Project ....................... 5 Relationship between Amount of Fee and Cost of Public Benefit Attributed to New Development .......................................................................................................... 5 AB 602 Provisions ................................................................................................... 5

3. METHODOLOGY AND FEE CALCULATION .......................................................................... 8 Land Use Categories ................................................................................................ 8 Estimates of New Worker Households ........................................................................ 9 Housing Development Costs and Affordability Gap ..................................................... 15 Fee Calculation ..................................................................................................... 18

Appendices:

Appendix A: Assumptions and Sources
Appendix B: Occupation Distribution by Employment Category 436

List of Tables
Table 1 Summary of Maximum Allowable Linkage Fees .................................................... 2 Table 2 San Mateo County Income Category Definitions (2021) ......................................... 2 Table 3 Land Use Category Descriptions ........................................................................ 8 Table 4 Adjustment Factors - Converting National Wages to San Francisco MSA Wages ...... 10 Table 5 Illustration of Employees' Household Income Calculation ..................................... 11 Table 6 Income Distribution of Worker Households by Employment Category .................... 13 Table 7 Household Generation Rates by Employment Category ....................................... 14 Table 8 Affordability Gap Analysis – Rental Product Type ................................................ 17 Table 9 Fee Calculation – Retail/Restaurant/Services ..................................................... 19 Table 10 Fee Calculation – Office/R&D/Medical Office ...................................................... 20 Table 11 Fee Calculation – Lodging ............................................................................... 21

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1. INTRODUCTION AND EXECUTIVE SUMMARY
Background
The City of Foster City is concerned with the limited supply of housing that is affordable to lower- wage workers in the City, and previously adopted a commercial linkage fee to address this supply challenge based on analysis from 2015. A commercial linkage fee, also known as a jobs- housing linkage fee, is a type of development impact fee charged to developers of new nonresidential properties to help support affordable housing for new workers. The conceptual underpinning of the fee is that new nonresidential development creates new jobs, and some of these jobs will pay wages below what is required for a worker to afford a market-rate housing unit in the city. If the cost to construct new housing units is higher than can be supported by the rents or home prices that workers can afford to pay, the difference is considered an “affordability gap.” The nexus (or reasonable relationship) established between the projected number of lower-wage jobs created by new development, and the subsidy needed to fund this “affordability gap” and support the creation and maintenance of units that are affordable to workers in these jobs is the basis for the linkage fee.

Economic & Planning Systems (EPS) was retained in 2021 to update the City’s linkage fee calculations. EPS has completed a nexus analysis that quantifies the relationship between the growth in several nonresidential land uses, including retail/restaurant/services, office/R&D/medical office, and lodging (Commercial Land Uses) and the demand for and cost of affordable housing for the local workforce.

Assessing an impact fee, such as a linkage fee, based on an established nexus is allowed pursuant to under the State of California’s Mitigation Fee Act (AB 1600 or California Government Code sections 66000 et seq.) As a development impact fee, this linkage fee can only be charged to new development and must be based on the impact of new development on the need for resources to subsidize the development of new affordable housing. Fee revenue may be collected by the City and used to subsidize the production or preservation of affordable units for lower- income households.

Key Findings
Table 1 summarizes the maximum justifiable linkage fee by Commercial Land Use category. The methodology used to establish the maximum justifiable fees is described in the subsequent chapters of this report. Please note that these maximum fees are supported by the nexus analysis, but are likely to exceed levels that could be feasibly borne by new commercial developments. The City has the opportunity to adopt fees up to these maximum levels, and under separate cover EPS has provided analysis of the fee levels adopted by competitive cities.

The ”adjusted maximum” fees identified on Table 1 reflect one rationale for adjusting the maximum fees downward, by discounting the maximum fees to reflect the current fact that only

7.9 percent of people who work in Foster City also reside in Foster City. 438
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Economic & Planning Systems, Inc. 2 FosterCity_LinkageFeeNexusStudy_060722.docx Table 1 Summary of Maximum Allowable Linkage Fees

Table 2 presents the income categories that are relevant for this fee program. This study uses incomes defined by the State of California’s Department of Housing and Community Development (HCD). The number of worker households that are generated as a result of commercial development are categorized on the basis of these income levels.

Table 2 San Mateo County Income Category Definitions (2021)

Sources
To estimate the fee, EPS relied on numerous sources of data, including the following:
• U.S. Bureau of Labor Statistics (BLS) "May 2020 National Industry-Specific Occupational Employment and Wage Estimates"
• State Department of Housing and Community Development (HCD) annual income limits for 2021
• U.S. Census Bureau American Community Survey (ACS) 5-Year Estimates (2015-2019) • Input from City of Foster City’s staff regarding affordability levels, recently developed affordable housing projects, market assumptions, and nexus study methodology Maximum Fee Adjusted Maximum [1]
Employment Category per sq. ft. per sq. ft.

Retail/Restaurant/Services $757 $59.81
Office/R&D/Medical Office $466 $36.80
Lodging $288 $22.75
Source: Economic & Planning Systems, Inc.
[1] Adjusted maximum fee reflects proportion of workers who may actually reside in Foster City, based on current percentage of Foster City employees that also reside in the City.

Income Group and Standard Definition HCD 2021 Maximum Income 3-Person Household
Extremely Low ≤30% AMI $49,350
Very Low >30% to ≤50% AMI $82,250
Low >50% to ≤80% AMI $131,750
Median >80% to ≤100% AMI $134,650
Moderate >100% AMI to ≤120% AMI $161,550
Source: California Department of Housing and Community Development (HCD); 439
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Economic & Planning Systems, Inc. 3 FosterCity_LinkageFeeNexusStudy_060722.docx These and other data sources are identified on the tables provided throughout this report. In addition, data from recent Foster City developments and land transactions have been combined with information collected from various market-rate and affordable housing developers to estimate appropriate development cost assumptions for use in Foster City.

Organization of Report
Following this Introduction and Executive Summary, this study includes the following chapters:
• Chapter 2 summarizes the required nexus findings of the Study. • Chapter 3 describes the methodology used to calculate the fee. 440

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2. REQUIRED NEXUS FINDINGS FOR FEE PROGRAM
The following section confirms that this Nexus Study contains the findings required under the Mitigation Fee Act for the establishment of a development impact fee.

Background
The City of Foster City (City) had previously adopted a commercial linkage fee based on a nexus study prepared in 2015. Given that the City is in the process of drafting a new Housing Element, as well as a number of changes in local housing supply, regional housing needs, and broader economic and housing trends, the City hired Economic & Planning Systems, Inc. (EPS) to update the affordable housing impact fee for new commercial (i.e., nonresidential) development.

Authority
This study serves as the basis for requiring development impact fees under AB 1600 legislation, as codified by the Mitigation Fee Act (California Government Code sections 66000 et seq.). This section of the Mitigation Fee Act sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that a reasonable relationship, or nexus, must exist between a governmental exaction and the purpose of the condition.

In 1991, the Ninth Circuit U.S. Court of Appeals upheld the City of Sacramento’s nonresidential linkage fee.1 In that case, the court found that the City of Sacramento’s fee program “substantially advanced a legitimate interest.” EPS is using a similar methodology to the nexus study reviewed in that case to develop the City of Foster City’s fee program.

Required Nexus Findings
• Identify the purpose of the fee.
• Identify how the fee is to be used.
• Determine how a reasonable relationship exists between the fee’s use and the type of development project on which the fee is imposed.
• Determine how a reasonable relationship exists between the demand for the affordable housing and the type of development project on which the fee is imposed. • Demonstrate a reasonable relationship between the amount of the fee and the cost of the public benefit attributable to the development on which the fee is imposed.

1 Commercial Builders of Northern California v. City of Sacramento, 941 F2d 872 (1991). 441
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Economic & Planning Systems, Inc. 5 FosterCity_LinkageFeeNexusStudy_060722.docx Purpose of Fee
The fee program established through this Nexus Study will fund the development and preservation of affordable housing in the City to serve lower-wage workers employed by new nonresidential development.

Use of Fee
The fee will be collected by the City. The funds are used to assist in the production or rehabilitation of affordable housing units and/or the acquisition of existing at-risk units in the City. The fee may also fund the studies and administration to support the fee program.

Relationship between Use of Fee and Type of
Development
New commercial development in the City will generate new jobs. Some portion of the workers in those jobs will not earn wages high enough to afford rent prices necessary to support new residential development without subsidy. The linkage fee will be used to help fund this subsidy, resulting in the development of residential units affordable to the local workforce.

Relationship between Demand for Affordable Housing
and Type of Project
The City and EPS have identified three Commercial Land Use categories for which a separate fee has been calculated. The proportion of lower wage workers and the number of square feet per employee for each employment category has been assessed to ensure a proper nexus is established.

Relationship between Amount of Fee and Cost of
Public Benefit Attributed to New Development
EPS estimated the difference between the cost of developing new rental housing and the value of the new rental units based on rents affordable to workers at wages typical of businesses in different commercial land uses. The affordable rents yielded unit values below the cost of construction, indicating an “affordability gap.” To estimate the fee for each Commercial Land Use, this gap was multiplied by the anticipated number of lower wage workers generated by the new development projects and the number of households of various income categories those workers are likely to form.

AB 602 Provisions
Assembly Bill 602 passed in the California Assembly in 2021 and was signed by the Governor.

The legislation adds some new requirements for impact fees in addition to those required under AB 1600. While much of the intent of AB 602 was to clarify and limit impact fees applied to residential development, certain aspects of AB 602 may also apply to nonresidential development.
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Economic & Planning Systems, Inc. 6 FosterCity_LinkageFeeNexusStudy_060722.docx Existing Level of Service
Under Government Code 66016.5, AB 602 requires that an impact fee nexus study “identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.” The City of Foster City wishes to use the commercial linkage fee program to generate revenues to increase the number of deed-restricted affordable housing as new workers are added to the local employment base.

The City of Foster City currently has 437 assisted affordable rental housing units for an employment base of 16,688 workers.2 This represents a ratio of 0.026 assisted affordable rental units per worker. The “adjusted maximum” linkage fee levels identified herein would allow the City to subsidize a similar or greater number of affordable units per worker – 0.040 per retail worker, 0,022 per office worker, and 0.044 per lodging worker.3 These similar or greater proportions may be appropriate given the shortfall of such affordable units in the city, region, and state, and the demonstrated impacts of new commercial development on the City’s need for affordable housing.

As an example of public policy reflecting that shortfall, the State’s Regional Housing Needs Allocation (RHNA) process has indicated that Foster City should aim to produce 1,896 total housing units between 2023 and 2031, including 1,119 units priced at moderate or lower incomes, and this target would represent a significant increase in the pace of both targeted and actual affordable housing production in recent years.
4 Collection of Fees at Previous Levels
Under Government Code 66016.5, AB 602 requires that “if a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.” The previously adopted commercial linkage fee nexus study was drafted in 2015, and included development cost and value assumptions that have been updated to reflect contemporary development economics.

The overall costs of housing production – such as land, labor, and materials – have increased since 2015, resulting in a higher estimate of housing subsidies required for affordable units and thus a higher maximum fee. The City of Foster City has had a commercial linkage fee since

2 Assisted rental unit count is from the Foster City Housing Element draft as of May 16, 2022 (788c02cb591527e6949c74d1b529376d_APP_A_-_Housing_Needs_Assessment-5-7-22.pdf (amazonaws.com). The employment base circa 2019 is from the US Census Bureau’s “On The Map” website as of May 9, 2022.
3 Proportions are calculated as the number of affordable units that could be subsidized by the maximum fee on a 100,000 square foot space, discounted to 7.9 percent of that figure given commute patterns to reflect the “adjusted maximum” (as shown on Tables 9-11) and then divided by the total number of employees that would work in a given building size (as shown on Table 7). 4 For the 2015-2023 RHNA cycle, the State’s targets for Foster City were 430 total units, including 311 units (72 percent) at moderate or lower income. Through 2021, Foster City has issued permits for 166 (roughly 52 percent) of those targeted affordable units. Regional Housing Needs Assessment (RHNA)/Plan Bay Area | Foster City California
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Economic & Planning Systems, Inc. 7 FosterCity_LinkageFeeNexusStudy_060722.docx 2017, and has accumulated $570,414 of such fee payments as of May 2022. The majority of this amount, $360,580, was collected in FY 2020-2021.

Capital Improvement Plan
Under Government Code 66016.5, AB 602 requires that “large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.” Under Government Code 66002, “any local agency which levies a fee subject to Section 66001 may adopt a capital improvement plan, which shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees.” Capital improvement plans typically include specific infrastructure projects and public facilities rather than affordable housing developments, and affordable housing is not listed in the statute as the type of “facility” or “improvement” for which a capital improvement plan must be adopted. However, the City has expressed its intent to support the permitting and construction of affordable housing units as specified in the State’s RHNA process, including 1,119 moderate and lower income units. These units may be located in various areas within the City’s boundaries, may range from single units to larger complexes of 100 or more units, and are intended to be permitted and/or developed by 2031. This nexus study estimates the costs to develop such units, less their value as income- restricted units, which represents the housing production subsidies to be financed with the collected linkage fees.

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3. METHODOLOGY AND FEE CALCULATION
Land U se Categories
The Commercial Land Uses analyzed in this study are presented in Table 3, along with a description of the types of businesses that are included in each category. In general, each land use category is intended to be associated with a particular type of building or land use, to which the fees can be applied. The City has asked EPS to evaluate three distinct land use categories, but the City may choose not to increase fees for all land use categories. While most land use categories are discretely associated with a particular type of building, others may be interchangeable as tenants may shift between building types (e.g., offices locating in retail space). This analysis bases its employment projections on NAICS codes associated with the most typical tenants for each land use category, as defined in Appendix B.

Table 3 Land Use Category Descriptions

Employment Category Description and Examples
Retail/Restaurant/Services Businesses selling merchandise, entertainment, and personal services to the general public. Examples include grocery stores, drug stores, clothing stores, general merchandise stores, beauty salons, and gas stations. Restaurants are also included in this category.

Office/R&D/Medical Office Employers engaged in business activity with limited direct access from the general public. This category includes a wide range of office uses including traditional office spaces, medical offices, and advanced R&D facitilites found in San Mateo County.

Lodging Lodging or short-term accommodations for travelers, vacationers, and others and comprises establishments primarily engaged in providing short-term lodging in facilities known as hotels, motor hotels, resort hotels, and motels.

Source: Economic & Planning Systems, Inc.
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Economic & Planning Systems, Inc. 9 FosterCity_LinkageFeeNexusStudy_060722.docx Estimates of New Worker Households
The following section details the methodology for estimating the distribution of household income levels for new worker households in the City, and the number of these households that will be generated by new development in each Commercial Land Use category.

Occupational Category and Wage Distribution
The first step in determining the number of new worker households requiring affordable residential units is to associate each land use type with occupational categories and estimate the wage distribution within those categories. This estimate included the following analytical steps:
• EPS used Bureau of Labor Statistics (BLS) national data regarding industries and occupation categories to estimate the proportion of occupations likely to be represented under each land use category. For example, EPS evaluated the occupation categories for the lodging industry to determine the proportional distribution of occupations for the land use category “Lodging.” North American Industry Classification System (NAICS) sector 721000 (“Accommodation”) shows that 4.5 percent of the jobs in the lodging industry nationwide are taken by managers, while 27.9 percent are in the category of buildings and grounds cleaning and maintenance (see Table B-2). The occupational distribution for all designated employment categories is provided in Appendix B.

• EPS used the BLS’s National Industry-Specific Occupational Employment and Wage Estimates for 2020 (the most recent year available) to estimate the wages earned by employees in industry sectors related to the land use categories. This BLS data set includes wage data for occupations at both the national and Metropolitan Statistical Area (MSA) levels.5 To account for regional wage disparities, EPS calculated wage adjustment factors, as displayed in Table 4, and applied these adjustment factors to the national income level for each occupation by industry sector to estimate the wages for workers in the City.

• The wages for each occupation were multiplied by 1.67, the average number of workers per working household in the City.6 The resulting figure represents estimated annual household income under the assumption that all workers in a household have similar earning potential. While certainly there will be some variation in wages per employee within a household, in the absence of more specific data, this analysis assumes comparable levels of education and training and thus hourly earnings among all workers in a household.

5 Foster City is within the San Francisco-Oakland-Hayward MSA. Wage data for the MSA are provided by occupations, aggregated for all industries, while national-level occupation wage data are broken out by industry sector (e.g., “management” workers in retail/restaurants/services industries versus in office/R&D/medical office industries).
6 From the Census Bureau’s American Community Survey.
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Economic & Planning Systems, Inc. 10 FosterCity_LinkageFeeNexusStudy_060722.docx Table 4 Adjustment Factors - Converting National Wages to San Francisco MSA Wages

Table 5 presents an example of how household income is calculated for each occupational category and the corresponding income category for that household.

US
Average
Occupation Category Wage Average Wage % of US Average
Management $126,480 $167,810 132.7%
Business and Financial Operations $80,680 $100,950 125.1% Computer and Mathematical Science $96,770 $128,210 132.5% Architecture and Engineering $90,300 $106,250 117.7%
Life, Physical, and Social Science $79,360 $107,190 135.1% Community and Social Services $52,180 $68,370 131.0%
Legal Occupations $112,320 $158,890 141.5%
Education, Training and Library $59,810 $72,130 120.6%
Arts, Design, Entertainment, Sports, and Media $64,400 $83,120 129.1% Healthcare Practitioner and Technical $85,900 $125,300 145.9% Healthcare Support $32,250 $40,480 125.5%
Protective Services $52,220 $70,550 135.1%
Food Preparation and Serving $27,650 $38,340 138.7%
Buildings and Grounds Cleaning and Maintenance $32,760 $44,770 136.7% Personal Care and Service $32,610 $42,330 129.8%
Sales and Related Occupations $45,750 $62,830 137.3%
Office and Administrative Support $42,390 $55,660 131.3% Farming, Fishing and Forestry $33,310 $40,470 121.5%
Construction and Extraction $53,940 $78,750 146.0%
Installation, Maintenance, and Repair $52,360 $67,740 129.4% Production $41,760 $50,000 119.7%
Transportation and Material Moving $39,680 $50,760 127.9% Sources: Bureau of Labor Statistics National Industry-Specific Occupational Employment and Wage Estimates , May 2020; Economic & Planning Systems, Inc.

San Francisco-Oakland-
Hayward MSA
San Franciso-Oakland-
Hayward MSA
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Economic & Planning Systems, Inc. 11 FosterCity_LinkageFeeNexusStudy_060722.docx Table 5 Illustration of Employees' Household Income Calculation

Item Source Example
Employment Land Use Category City of Foster City and EPS Lodging Industry Category Bureau of Labor Statistics (BLS) Accommodation (NAICS Code 721000) Occupation Category BLS Buildings and Grounds Cleaning and Maintenance Nationwide Median Income for Occupation BLS $28,820
Regional Wage Adjustment Factor for Occupation BLS and EPS 136.7% Median Wage Estimate for the San Francisco-
Oakland-Hayward MSA BLS and EPS $39,386
Workers per Household American Community Survey 5-Year Estimates 2019 1.67 Median Income per Household Workers per HH Multiplied by Med. Annual Wage $65,836 Income Category for 3-person Family California Housing and Community Development (HCD) Very Low Sources: City of Foster City; Bureau of Labor Statistics; California Housing and Community Development; Economic & Planning Systems, Inc. 448
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Economic & Planning Systems, Inc. 12 FosterCity_LinkageFeeNexusStudy_060722.docx Distribution of Workers by Land Use Type
After identifying income ranges for each occupation category, EPS summed the percentages of the households in each income bracket across all occupations represented in the land use categories. These estimates of the proportion of worker households in each income brackets by land use category are presented in Table 6.

As illustrated, Retail/Restaurant/Services and Lodging are expected to generate significant numbers of households at the very low-income level, while jobs in the Office/R&D/Medical Offices uses are expected to yield more households with incomes at or above moderate-income levels.

See Appendix B for details regarding the distribution of occupations and wages within each land use type.

Employment Densities
Different land use categories operate with varying levels of employment densities. A 100,000 square foot hotel, for example, typically has fewer employees than an office building of the same size. The number of building square feet anticipated for an employee is termed the “employment density” of each land use category.

The CoStar Group is a real estate industry source for information regarding commercial development, rents, vacancies, and other performance metrics. For some employment buildings, CoStar Group collects information regarding the size of leased space and the number of employees therein, and EPS has used representative data from Foster City and the Mid-Peninsula market area to estimate the employment densities for the Retail/Restaurant/Services and Office/R&D/Medical Office. CoStar does not provide such information for Lodging uses, but the City’s 2015 nexus study for the existing commercial linkage fee contained extensive research and citations regarding employment densities, and EPS has utilized the same assumptions as that previous study for the Lodging land use category (detailed in Appendix Table A-1). Using these employment density assumptions, EPS estimated the number of employees that would occupy a prototype 100,000-square foot building for each land use category, as shown in Table

7. Household Formation
After calculating the estimated number of new employees generated for each land use category, EPS estimated the number of households represented by these new employees, detailed in Table 7. To calculate new households, EPS first adjusted the number of workers expected to form new households, accounting for those workers who are typically too young (aged 16 to 19) to form their own households.7 The resulting adjusted estimate of new workers was divided by

1.67, which represents the average number of workers per households in Foster City.8

7 Data from the Bureau of Labor Statistics indicate this age cohort represents about 3.2 percent of the overall workforce. This proportion was applied to all industries except retail/restaurant/services industries, where the younger worker cohort represent 10.8 percent of the overall industry employment. 8 Based on the Census Bureau’s American Community Survey 2015-2019 data regarding the number of Foster City’s residents who are defined as “workers” in households that have workers. 449
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Economic & Planning Systems, Inc. 13 FosterCity_LinkageFeeNexusStudy_060722.docx Table 6 Income Distribution of Worker Households by Employment Category

Employment Category [1] Very Low Low Moderate Above Moderate 50% AMI 80% AMI 120% AMI >120% AMI
Retail/Restaurant/Services 89.7% 4.2% 0.9% 5.2%
Office/R&D/Medical Office 18.7% 27.0% 2.5% 51.8%
Lodging 83.9% 11.4% 0.2% 4.5%
Sources: Bureau of Labor Statistics; California Housing and Community Development (HCD); Economic & Planning Systems, Inc. [1] Designation of household income assumes a 3-person household and 1.67 workers per household, based on American Community Survey data.

Income Level
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Economic & Planning Systems, Inc. 14 FosterCity_LinkageFeeNexusStudy_060722.docx Table 7 Household Generation Rates by Employment Category

% of Workers Total
Employment Sq.Ft. per Total Workers Forming Households per Very Low Low Moderate Above Moderate Category Worker1 per 100k Sq.Ft. Households2 100k Sq.Ft.3, 4 50% AMI 80% AMI 120% AMI >120% AMI Retail/Restaurant/Services 360 278 89.2% 148 133 6 1 8
Office/R&D/Medical Office 200 500 96.8% 290 54 78 7 150 Lodging 1,000 100 96.8% 58 49 7 0 3
[1] See Appendix Table A-1 for sources on employment densities in different land uses. [3] Assumes 1.67 employees per household based on Census data; rounded. [5] Figures are rounded to nearest whole number.

Sources: US Census; California Housing and Community Development (HCD); Economic & Planning Systems, Inc. [2] U.S. Bureau of Labor Statistics data indicates that 10.8% of retail/restaurant workers are aged 16-19, but an average of only 3.2% of workers in other industries fall into that age cohort. EPS has assumed that workers aged 16-19 do not form their own households. [4] This maximum nexus-based fee calculation assumes that Foster City fees account for all worker households generated by new employers in City of Foster City, though some workers and their households may choose to reside outside of Foster City.

Households by Income Level5
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Economic & Planning Systems, Inc. 15 FosterCity_LinkageFeeNexusStudy_060722.docx Housing Development Costs and Affordability Gap
In order to calculate the maximum justifiable fee for each land use category, EPS estimated the “affordability gap” related to developing residential units affordable to very-low, low, and moderate-income households. The average household in Foster City has 2.66 people according to 2019 Five-Year Estimates from the American Community Survey (ACS). Thus, this analysis estimates the costs of providing affordable housing for a three-person household, to represent the City’s average household size (rounded). California State law (California Health and Safety Code Section 50052.5) assumes that a three-person household would occupy a two-bedroom unit, and this assumption is used in this analysis.

The assumed prototype reflects multifamily construction at 35 dwelling units to the acre with surface parking, consistent with City staff representations of the general type of multifamily projects being built in Foster City as well as the recent inclusionary housing feasibility and in-lieu fee studies prepared by EPS for Foster City. This building prototype is generally cost-effective to construct, as it makes efficient use of land and does not involve overly expensive construction materials or techniques. Based on comparable recent projects in the vicinity of Foster City, EPS assumes that the typical net square footage of a two-bedroom rental unit in Foster City will be approximately 1,000 square feet.

Development Cost Assumptions
Affordable housing development costs include land costs, direct costs (e.g., labor and materials), and indirect or “soft” costs (e.g., architecture, entitlement, marketing, etc.). Data from recent land transactions in and around Foster City have been combined with EPS’s information from various market-rate and affordable housing developers on the Peninsula to estimate appropriate development cost assumptions for use in Foster City. A developer fee is also estimated, and represents the compensation to the developer for their efforts, investment, and risk. These assumptions are shown on Table 8 and indicate that the total cost per unit for rental apartments is about $848,000. By necessity, this figure represents a “prototypical” project; the actual costs for a given project will vary by location and project design characteristics.

Revenue Assumptions
Assumptions must be made regarding the applicable income level (very-low, low, and moderate) and the percentage of household income spent on housing costs to calculate the values of the affordable units. In addition, translating these assumptions into unit prices and values requires estimates of operating expenses and capitalization rates. The following assumptions were used in these calculations:
• Income Levels—This analysis estimates the subsidy required to produce units for households falling into the very low, low, and moderate-income categories for a three-person household.

While these categories are generally defined as a percentage of area median income (AMI) by HCD, in San Mateo County the dollar amount thresholds for each category are not necessarily in line with the percentage thresholds. For example, in 2021, AMI in San Mateo County for a three-person household is $134,650 according to the HCD, but the maximum income for the low-income category (typically defined as 51 to 80 percent of AMI) is $131,750 (see Table 2). This income threshold, which is clearly higher than 80 percent of AMI, was established by HCD to reflect the relatively high cost of housing found in San Mateo 452
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Economic & Planning Systems, Inc. 16 FosterCity_LinkageFeeNexusStudy_060722.docx County.9 Note also that EPS has assumed the maximum income level allowable under each nominal income category (for instance “moderate income” levels are set at 120 percent AMI, the very top of the range typically defined as 80 to 120 percent AMI). This assumption thus minimizes the development subsidy required for units at each income category. • Percentage of Gross Household Income Available for Housing Costs— HCD standards on overpaying for rent indicate that households should pay no more than 30 percent of their gross income on housing cost.10 For this analysis, EPS has assumed that all households shall spend 30 percent of their gross income on housing costs, including the cost of utilities stated by the San Mateo County utility allowance schedule.
• Operating Costs for Rental Units—This analysis assumes that apartment operators incur annual operating costs of $9,000 per unit for below market rate housing for units affordable for those falling into the very low and low-income categories. EPS has assumed the units for moderate-income households would have similar operating costs but would be built by for- profit builders and thus also subject to property taxes, increasing their annual operating cost to 30 percent of annual rental revenue per unit.

Affordability Gap Results
Table 8 shows the costs and values for developing rental apartments in the City for households at various income levels. Across all categories, the cost of constructing the unit is higher than the supportable value of the unit. This is considered the “affordability gap,” and serves as the basis for calculating the subsidies required to provide housing for the lower-wage worker households generated by new nonresidential development. The results of the analysis illustrate that rents affordable to households earning moderate incomes and below cannot support the costs of new construction without subsidy.

9 See HCD State Income Limits 2021, https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal- income-limits/docs/income-limits-2021.pdf
10 See HCD standards for Overpayment and Overcrowding, Building Blocks: Housing Needs - Overpayment and Overcrowding (ca.gov)
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Economic & Planning Systems, Inc. 17 FosterCity_LinkageFeeNexusStudy_060722.docx Table 8 Affordability Gap Analysis – Rental Product Type

Item Very Low Low Moderate
50% AMI 80% AMI 120% AMI
Site Assumptions
Density/Acre 35 35 35
Gross Unit Size [1] 1,150 1,150 1,150
Net Unit Size 1,000 1,000 1,000
Parking Spaces/Unit 2.25 2.25 2.25
Acquisition Cost [2]
Total Acquisition Cost $180 per sq. ft. $7,837,315 $7,837,315 $7,837,315 Acquisition Cost per Unit $223,923 $223,923 $223,923
Direct Costs
Surface Parking Spaces $5,000 per space $11,250 $11,250 $11,250 Building Costs [3] $325 per sq. ft. $373,750 $373,750 $373,750 Direct Cost per Unit $385,000 $385,000 $385,000
Indirect Costs [4]
Indirect Cost per Unit 35% of direct costs $134,750 $134,750 $134,750 Developer Fee
Developer Fee per Unit 14% of all costs $104,114 $104,114 $104,114 Total Cost per Unit $847,788 $847,788 $847,788
Maximum Supported Home Price
Household Income [5] $82,250 $131,750 $161,550
Revenue to Property Owner/Year [6] $21,279 $36,129 $45,069 (less) Operating Expenses per Unit/Year [7] ($9,740) ($10,186) ($15,993) Net Operating Income $11,539 $25,943 $29,076
Capitalization Rate [8] 4.0% 4.0% 4.0%
Total Supportable Unit Value [9] $288,469 $648,581 $726,889 Affordability Gap ($559,319) ($199,206) ($120,899)
Mid-Density Multifamily Apartments with
Surface/Deck Parking
[7] Vacancy rate is included in operating expenses. Affordable unit vacancy rate is assumed to be 3%. Operating expenses are assumed to be a flat $9,000 for Low and Very Low, and 30% of revenues for Moderate units.

Source: CoStar; California Department Housing and Community Development; Economic & Planning Systems, Inc.

Assumption
[6] Assumes housing costs (e.g., rent and utilities) to be 30% of gross household income, and deducts $3,396 for utilities. [4] Includes costs for architecture and engineering; entitlement and fees; project management; appraisal and market study; marketing, commissions, and general administration; financing and charges; and insurance. [8] A higher capitlization rate is assumed for affordable units compared to market rate. [9] The total supportable unit value is determined by dividing the net operating income by the capitalization rate. [2] Based on CoStar reported land sale transactions in Foster City. [3] Includes costs for contingency and site improvement. [5] Based on 2021 income limits for a three-person household in San Mateo County. [1] A load factor of 15% is applied to the net unit size to calculate the gross unit size. 454
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Economic & Planning Systems, Inc. 18 FosterCity_LinkageFeeNexusStudy_060722.docx Fee Calculation
Tables 9 through 11 provide the maximum nonresidential housing fee calculations for each of the three land use categories.

The fee is calculated by the following steps:

1. Estimate the number of new households by income category generated by a prototype 100,000-square foot building in the land use category.

2. Multiply the number of households generated by the per-unit affordability gap (as calculated in Table 8) to determine the level of subsidy required to provide housing in Foster City for all new worker households.

3. Divide the total affordability gap by 100,000 square feet (the size of the prototype building) to determine a maximum fee per building square foot.

The “Maximum Fee per Square Foot” calculated in the following tables represents the maximum justifiable linkage fee that the City can charge for each land use category based on the required nexus findings. The City may, however, decide to adopt fees below the maximum justifiable levels based on economic or policy considerations. For example, EPS has calculated an “Adjusted Maximum” fee reflecting the idea that not every employee of newly developed workplaces will in fact reside in Foster City. According to the most recently available data from the US Census Bureau’s American Community Survey, only 7.9 percent of people who work in Foster City also live in Foster City. EPS has applied that proportion to the “Maximum Fee” to calculate an “Adjusted Maximum” for each land use category. To be clear, however, this type of adjustment is not legally required, but does yield a lower fee that is more comparable to the City’s current fee and those of nearby communities.
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Economic & Planning Systems, Inc. 19 FosterCity_LinkageFeeNexusStudy_060722.docx Table 9 Fee Calculation – Retail/Restaurant/Services

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 7 Table 8
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 133 $559,319 $74,389,401
Low Income 6 $199,206 $1,195,238
Moderate 1 $120,899 $120,899
Total 140 $75,705,537
Fee Calculation formula
Total Financing Gap a $75,705,537
Total Building Sq. Ft. b 100,000
Maximum Fee per Sq. Ft. c = a / b $757.06
Adjustment for % of Workers Living in Foster City [1] 7.9% Adjusted Fee per Sq. Ft. $59.81
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 7.9% of people working in Foster City also lived in Foster City in 2019 (most recent data available).
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Economic & Planning Systems, Inc. 20 FosterCity_LinkageFeeNexusStudy_060722.docx Table 10 Fee Calculation – Office/R&D/Medical Office

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 7 Table 8
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 54 $559,319 $30,203,215
Low Income 78 $199,206 $15,538,092
Moderate 7 $120,899 $846,292
Total 139 $46,587,599
Fee Calculation formula
Total Financing Gap a $46,587,599
Total Building Sq. Ft. b 100,000
Maximum Fee per Sq. Ft. c = a / b $465.88
Adjustment for % of Workers Living in Foster City [1] 7.9% Adjusted Fee per Sq. Ft. $36.80
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 7.9% of people working in Foster City also lived in Foster City in 2019 (most recent data available).
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Economic & Planning Systems, Inc. 21 FosterCity_LinkageFeeNexusStudy_060722.docx Table 11 Fee Calculation – Lodging

Worker
Households Affordability Gap Total Gap
Item per 100k sq. ft. per household
Table References: Table 7 Table 8
Aggregate Financing Gap per 100K Sq. Ft
Affordability Level
Very Low Income 49 $559,319 $27,406,621
Low Income 7 $199,206 $1,394,444
Moderate 0 $120,899 $0
Total 56 $28,801,065
Fee Calculation formula
Total Financing Gap a $28,801,065
Total Building Sq. Ft.1 b 100,000
Maximum Fee per Sq. Ft. c = a / b $288.01
Adjustment for % of Workers Living in Foster City [1] 7.9% Adjusted Fee per Sq. Ft. $22.75
Sources: US Census Bureau "On The Map"; Economic & Planning Systems, Inc. [1] The US Census Bureau indicates that 7.9% of people working in Foster City also lived in Foster City in 2019 (most recent data available).
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APPENDICES:

Appendix A: Assumptions and Sources
Appendix B: Occupation Distribution by
Employment Category

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APPENDIX A:

Assumptions and Sources

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Table A-1
Assumptions and Sources
Foster City Affordable Housing Commercial Linkage Fee Study; EPS #211040 Item Total Unit Source
Demographic Assumptions
Total Employed 17,742 persons American Community Survey 5-Year Estimates 2019 Households 12,690 households American Community Survey 5-Year Estimates 2019 Households with Earnings 10,614 households American Community Survey 5-Year Estimates 2019 Workers per Household with Workers 1.67 persons American Community Survey 5-Year Estimates 2019 Foster City Workers living in Foster City 7.9% of workers US Census Bureau "On The Map" 2019 data Employment Density Assumptions [1]
Retail/Restaurant/Services 360 sq. ft. per employee CoStar Group data Office/R&D/Medical Office 200 sq. ft. per employee CoStar Group data Lodging 1,000 sq. ft. per employee City of Foster City - 2015 Commercial Linkage Nexus Study Sources: U.S. Census American Community Survey 5-Year Estimates 2019; US Census Bureau "On The Map"; CoStar Group; Strategic Economics/Vernazza Wolfe "Commercial Linkage Fee Nexus Study" prepared for Foster City in November 2015; and Economic & Planning Systems, Inc. [1] Employment densities for office and retail were derived from CoStar Group using February 2022 self-reported employment and square footage figures for Foster City office tenants and mid-San Mateo County retail tenants; lodging densities are consistent with the 2015 Nexus Study produced by Strategic Economics/Vernazza Wolfe.
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APPENDIX B:

Occupation Distribution by Employment Category
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Table B-1
Occupation and Wage Distribution - Retail/Restaurant
Foster City Affordable Housing Commercial Linkage Fee Study; EPS #211040 US Total Jobs US Average Wage San Francisco % of Industry Jobs Occupation Category by Occupation by Occupation MSA in Occupation HH Income at Income in Industry in Industry Wage Est. [2] Category 1.67 workers/HH Category Management 745,200 $90,201 $119,676 2.83% $200,046 Above Moderate Business and Financial Operations 240,670 $64,983 $81,309 0.92% $135,914 Moderate Computer and Mathematical Science 73,500 $97,634 $129,354 0.28% $216,224 Above Moderate Architecture and Engineering 5,120 $79,762 $93,851 0.02% $156,878 Moderate Life, Physical, and Social Science 1,960 $64,684 $87,368 0.01% $146,041 Moderate Community and Social Services 3,150 $44,642 $58,493 0.01% $97,775 Low Legal Occupations 3,210 $75,730 $107,129 0.01% $179,074 Above Moderate Education, Training and Library 10,480 $39,107 $47,162 0.04% $78,835 Very Low Arts, Design, Entertainment, Sports, and Media 152,850 $42,540 $54,905 0.58% $91,778 Low Healthcare Practitioner and Technical 538,760 $67,562 $98,550 2.05% $164,733 Above Moderate Healthcare Support 84,960 $37,325 $46,850 0.32% $78,313 Very Low Protective Services 85,410 $36,600 $49,448 0.32% $82,655 Low Food Preparation and Serving 9,330,280 $27,110 $37,591 35.48% $62,835 Very Low Buildings and Grounds Cleaning and Maintenance 161,820 $29,240 $39,959 0.62% $66,794 Very Low Personal Care and Service 684,820 $33,352 $43,293 2.60% $72,367 Very Low Sales and Related Occupations 8,284,970 $31,869 $43,766 31.50% $73,158 Very Low Office and Administrative Support 1,546,940 $36,160 $47,480 5.88% $79,366 Very Low Farming, Fishing and Forestry 21,160 $31,904 $38,762 0.08% $64,793 Very Low Construction and Extraction 47,350 $48,028 $70,119 0.18% $117,208 Low Installation, Maintenance, and Repair 805,660 $45,334 $58,650 3.06% $98,037 Low Production 566,720 $33,446 $40,045 2.15% $66,938 Very Low Transportation and Material Moving 2,903,210 $30,170 $38,594 11.04% $64,513 Very Low Total or Weighted Average 26,298,200 $45,579 100.00% $76,189 [1] Includes NAICS Sectors: 44 and 45 - Retail Trade; 532000 - Rental and Leasing Services; 812000 - Personal and Laundry Services; and 722000 - Food Services and Drinking Places. [2] Adjusted using factors calculated in Table L-4.

Sources: US Bureau of Labor Statistics, May 2020 National Industry-Specific Occupational Employment and Wage Estimates; Economic & Planning Systems, Inc.

Retail/Restaurant/Services
RETAIL/RESTAURANT [1]
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Table B-2
Occupation and Wage Distribution - Lodging
Foster City Affordable Housing Commercial Linkage Fee Study; EPS #211040 US Total Jobs US Average Wage San Francisco % of Industry Jobs Occupation Category by Occupation by Occupation MSA in Occupation HH Income at Income in Industry in Industry Wage Est. [2] Category 1.67 workers/HH Category Management 70,720 $84,050 $111,515 4.49% $186,405 Above Moderate Business and Financial Operations 26,610 $60,120 $75,225 1.69% $125,743 Low Computer and Mathematical Science 3,110 $66,230 $87,748 0.20% $146,676 Moderate Architecture and Engineering 490 $65,260 $76,787 0.03% $128,355 Low Life, Physical, and Social Science 140 $56,880 $76,827 0.01% $128,421 Low Community and Social Services 210 $39,820 $52,175 0.01% $87,214 Low Legal Occupations 120 $125,790 $177,945 0.01% $297,447 Above Moderate Education, Training and Library 2,300 $38,890 $46,901 0.15% $78,398 Very Low Arts, Design, Entertainment, Sports, and Media 5,290 $50,740 $65,489 0.34% $109,470 Low Healthcare Practitioner and Technical 330 $51,540 $75,180 0.02% $125,668 Low Healthcare Support 6,790 $43,730 $54,890 0.43% $91,752 Low Protective Services 33,360 $35,080 $47,394 2.12% $79,222 Very Low Food Preparation and Serving 373,820 $32,820 $45,509 23.71% $76,071 Very Low Buildings and Grounds Cleaning and Maintenance 439,450 $28,820 $39,386 27.88% $65,836 Very Low Personal Care and Service 117,630 $31,830 $41,318 7.46% $69,065 Very Low Sales and Related Occupations 45,840 $43,280 $59,438 2.91% $99,354 Low Office and Administrative Support 300,620 $31,000 $40,704 19.07% $68,040 Very Low Farming, Fishing and Forestry 810 $33,130 $40,251 0.05% $67,283 Very Low Construction and Extraction 3,760 $52,220 $76,239 0.24% $127,438 Low Installation, Maintenance, and Repair 90,440 $39,990 $51,736 5.74% $86,481 Low Production 34,450 $28,820 $34,507 2.19% $57,680 Very Low Transportation and Material Moving 20,110 $30,480 $38,991 1.28% $65,176 Very Low Total or Weighted Average 1,576,400 $46,807 100.00% $78,242 [1] Includes NAICS Sector: 721000 - Accommodation.
[2] Adjusted using factors calculated in Table L-4.

Sources: US Bureau of Labor Statistics, May 2020 National Industry-Specific Occupational Employment and Wage Estimates; Economic & Planning Systems, Inc.

LODGING [1]
Lodging
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Table B-3
Occupation and Wage Distribution - Office
Foster City Affordable Housing Commercial Linkage Fee Study; EPS #211040 US Total Jobs US Average Wage San Francisco % of Industry Jobs Occupation Category by Occupation by Occupation MSA in Occupation HH Income at Income in Industry in Industry Wage Est. [2] Category 1.67 workers/HH Category Management 3,016,930 $147,951 $196,297 8.39% $328,124 Above Moderate Business and Financial Operations 4,670,610 $85,321 $106,757 12.98% $178,451 Above Moderate Computer and Mathematical Science 3,290,160 $99,630 $131,999 9.14% $220,645 Above Moderate Architecture and Engineering 1,116,590 $90,180 $106,109 3.10% $177,368 Above Moderate Life, Physical, and Social Science 476,400 $86,397 $116,694 1.32% $195,062 Above Moderate Community and Social Services 342,530 $51,711 $67,756 0.95% $113,258 Low Legal Occupations 842,240 $114,650 $162,186 2.34% $271,105 Above Moderate Education, Training and Library 64,470 $60,824 $73,352 0.18% $122,613 Low Arts, Design, Entertainment, Sports, and Media 914,120 $72,567 $93,661 2.54% $156,561 Moderate Healthcare Practitioner and Technical 2,731,880 $104,106 $151,856 7.59% $253,838 Above Moderate Healthcare Support 1,368,800 $38,458 $48,272 3.80% $80,689 Very Low Protective Services 890,140 $35,519 $47,986 2.47% $80,212 Very Low Food Preparation and Serving 167,730 $29,816 $41,344 0.47% $69,109 Very Low Buildings and Grounds Cleaning and Maintenance 2,082,160 $33,071 $45,195 5.79% $75,547 Very Low Personal Care and Service 189,260 $32,513 $42,204 0.53% $70,547 Very Low Sales and Related Occupations 2,476,370 $71,548 $98,260 6.88% $164,247 Above Moderate Office and Administrative Support 8,041,720 $42,578 $55,906 22.35% $93,451 Low Farming, Fishing and Forestry 23,530 $35,268 $42,849 0.07% $71,625 Very Low Construction and Extraction 305,450 $53,061 $77,467 0.85% $129,491 Low Installation, Maintenance, and Repair 952,540 $52,076 $67,373 2.65% $112,618 Low Production 829,890 $36,921 $44,206 2.31% $73,894 Very Low Transportation and Material Moving 1,184,580 $33,282 $42,575 3.29% $71,167 Very Low Total or Weighted Average 35,978,100 $95,917 100.00% $160,331 [1] Includes NAICS Sectors: 51 - Information; 52 - Finance and Insurance; 53 - Real Estate and Rental and Leasing (excluding 532000 -Rental and Leasing Services); 54 - Professional, Scientific, and Technical Services; 55 - Management of Companies and Enterprises; 561000 - Admin. and Support Services; 621100 - Offices of Physicians; 621200 - Offices of Dentists; 621300 - Offices of Other Health Practitioners; 621400 - Outpatient Care Centers; and 621500 - Medical and Diagonostic Laboratories. [2] Adjusted using factors calculated in Table L-4.

Sources: US Bureau of Labor Statistics, May 2020 National Industry-Specific Occupational Employment and Wage Estimates; Economic & Planning Systems, Inc.

Office/R&D/Medical Office
OFFICE [1]
465
DATE: May 16, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

FROM: Marlene Subhashini, Community Development Director

SUBJECT: RECEIVE UPDATE ON DEVELOPMENT IMPACT FEES AND

COMMERCIAL LINKAGE FEES AND PROVIDE DIRECTION

REGARDING PROPOSED IMPACT FEE AMOUNTS

RECOMMENDATION

It is recommended that the City Council, by Minute Order, receive and accept a report on the preliminary findings of the Development Impact Fee (DIF) and Commercial Linkage Fees nexus studies and provide policy direction on the following:

1. The DIF and Commercial Linkage Fee amounts that staff should bring back for Council adoption on June 20, 2022; and

2. Whether, and to what extent, the Council would like to set the DIFs or Commercial Linkage Fees at reduced amounts or grant fee waivers for certain types of development, such as affordable housing projects, affordable housing units, ADUs etc.

EXECUTIVE SUMMARY

Last year, the City Council approved an agreement with Economic and Planning Systems, Inc. (EPS) to conduct a comprehensive DIF nexus study and update the City’s Commercial Linkage Fees. The purpose of this item is to update the City Council and the public on the preliminary results of the DIF and Commercial Linkage Fee nexus studies before these fees are brought to 466
Council for formal adoption in June.

Foster City’s primary source of revenue generation has been through property tax while secondary sources of revenue have been from sales tax, Transient Occupancy Tax and charges for services (e.g. planning and building fees, recreation classes, etc.). While sources for revenue generation are limited, the capital needs of Foster City have grown, propelled by population growth, new jobs and an aging infrastructure. From 1990 to 2019, the City’s population grew from 26,000 to 33,693. With fewer options to generate revenue, pressing current and anticipated capital and infrastructure needs, DIFs and updated Commercial Linkage Fees provide an additional revenue source to offset costs of public facilities related to development projects.

The nexus studies will provide analyses regarding the proposed limits the City can collect for each development impact fee category, with the fee amounts ultimately determined by City Council policy. It should be noted that the City will need to ensure that fee amounts are sufficient to fund new amenities and mitigate future impacts resulting from future development as proposed in the General Plan and other City planning documents when considering at what levels the fees should be set. It is also important to consider economic impacts and regional comparisons when establishing new fee amounts.

Staff and EPS are currently working to finalize the nexus studies, but we have calculated the maximum fee amounts for the DIFs and Commercial Linkage Fees. The focus of the May 16, 2022 meeting is to provide the City Council with an overview of the preliminary findings and fee calculations, which will be included in the DIF and Commercial Linkage Fee nexus studies that will be presented to Council in June. Comments and policy direction can be provided at this meeting. The policy direction received at this meeting will help staff and EPS refine and finalize the studies prior to the adoption of the DIFs and Commercial Linkage Fees at the June 20th City Council meeting.

BACKGROUND

Under AB 1600 (California Government Code Section 66000 et. seq.), cities and counties have the authority to implement DIFs. DIFs allow cities to collect fees from new development projects to fund improvements that address those projects’ impacts to the City’s infrastructure.

In establishing, increasing, or imposing a fee as a condition for the approval 467
of a development project, Government Code 66001(a) and (b) require a local agency to:

1. Identify the purpose of the fee;

2. Identify how the fee is to be used;

3. Determine how a reasonable relationship exists between the fee use and type of development project for which the fee is being used;

4. Determine how the need for the public facility relates to the type of development project for which the fee is imposed; and

5. Show the relationship between the amount of the fee and the cost of the public facility.

The nexus is based on the premise that new development should pay for its proportionate share of public improvement costs. Because residents, business and their employees create the need for and benefit from the availability of public services and infrastructure improvements, new development should pay its fair share of public facilities/improvements that will serve the development.

The City Council–adopted Strategic Priorities for 2021 identified DIF study, a key project/initiative identified by CDD staff as a priority under Smart Planning, Development and the Local Economy. The two key milestones that were identified for this effort to be completed in 2021 were: 1) to seek City Council direction on initiating an Impact Fee/Nexus Study to consider DIFs; and 2) to issue an RFP and award of contract to an economic consultant to conduct the Impact Fee/Nexus Study pending Council direction. These milestones were met in 2021 as listed below:
On March 11, 2021, by Minute Order No. 1742, the City Council affirmed each of the Value/Priority areas identified in the Strategic Priorities for 2021 and approved initiation of Impact Fee study to establish Development Impact Fees for development projects. On April 5, 2021, the City Council authorized staff to issue an RFP for professional services to conduct a Comprehensive Development Impact Fee Study.
On April 6, 2021, staff issued an RFP with a due date for proposals/responses by May 7, 2021, and staff received four (4) responses to the RFP.
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On June 21, 2021, the City Council adopted Resolution No. 2021-89 and authorized the Mayor to enter into an agreement with Economic and Planning Systems, Inc. (EPS).
On November 15, 2021, the City Council approved a contract amendment with EPS to include the study of Affordable Housing Fees to the original scope of work.

For additional background information, refer to the March 11, 2021 City Council Staff Report (Attachment 1).

ANALYSIS

Impact fee revenues are used to cover the cost of constructing capital and infrastructure improvements required to serve new development and growth in the area in which they apply. As such, impact fees must be based on a reasonable nexus, or connection, between new development and the need for specific capital facilities and improvements. Impact fee revenues cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. In addition, impact fee revenue cannot be collected or used to cover the cost of preexisting infrastructure needs or deficiencies.

Foster City currently has a Quimby Act dedication and in-lieu fee requirement for parkland acquisition and an affordable housing fee charged to non- residential development (Commercial Linkage Fee). The City has other fees such as sewer and water connection fees, which are separate from the DIFs.

The park in-lieu fee was established in 1984 to ensure that new residential subdivision developments contribute to the City’s Park system with park land dedication, credit for on-site facilities or in-lieu fee payments. The affordable housing fee or Commercial Linkage Fee was adopted in 2016. Even though the fee was adopted in 2016, most major commercial development projects had received their entitlements prior to that. Additionally, the City Council recently adopted a Below Market Rate Housing In-lieu fees by Resolution No. 2022-21.

In September 2021, the State of California adopted Assembly Bill (AB) 602, which includes several new requirements related to the development and implementation of impact fee programs. The key provisions related to the calculations documented in the DIF nexus study are summarized below. 469
Capital Improvement Plan: AB 602 requires that jurisdictions adopt a Capital Improvement Plan (CIP) as part of the nexus study process.

This adoption can occur at the same time as the fee ordinance adoption. Accordingly, the nexus study will include a Foster City DIF Long-Term CIP (Foster City DIF CIP) to be approved by the City Council in conjunction with the DIF Program. The Foster City DIF CIP presented in the nexus study will be derived from the capital improvements identified as part of the nexus study.
Explanation of Level of Service and Fee Increase: AB 602 requires that the nexus study provide explanations if the fee calculation is based on a change in existing levels of service. Since Foster City does not currently have a DIF Program, the calculations presented in the nexus study will provide justification for entirely new fees rather than an increase over an existing amount. The nexus study will rely on service standards developed in consultation with City staff and with reference to the existing capital facilities and improvements in the City as appropriate and documented herein.
Residential Fees Adopted After July 1, 2022: AB 602 also requires that any residential fees adopted after July 1, 2022 must be charged on a per square foot basis, unless the City Council makes certain findings.

Since the City has already undergone substantial work to calculate the residential DIFs on a per unit basis, the Council needs to adopt the DIFs before July 1, 2022 in order to avoid the new requirement, which would result in increased costs to revise the fee calculations and would delay the City’s adoption of the new DIFs. The new, per square foot calculation requirement does not apply to the Commercial Linkage Fees because those fees are not imposed on residential development.

DEVELOPMENT IMPACT FEES

The DIF nexus study (“Nexus Study”) calculates the DIFs by using the methodology described below:

While the nexus methodology employed varies by fee category as appropriate given the range of capital facilities and improvements covered, there are basic steps common to all. Specifically, for each fee category, EPS has applied the following general steps to calculate the nexus-supported fee amounts:
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1. Estimated existing and future population and employment in Foster City through buildout of the current General Plan using a variety of third- party sources, as described in the subsequent section.

2. Identified the new infrastructure and capital facility improvements needed to serve both existing and future residents and employees.

These needs were based on interviews with City staff and analysis of existing city facilities capacity and service standards.

3. Developed cost estimates for capital facility improvements described in step 2 above. These costs estimates were developed based on information provided by City departmental staff as well as additional research and in-house resources.

4. Allocated the capital facility costs identified in step 3 above between existing and new development to determine the share included in the DIF program. These allocation shares were determined in a variety of ways depending on improvement, available data, and City guidance. In cases where the facility or improvement is entirely triggered by new development, the costs are allocated 100 percent to the DIF program.

In cases where the improvement is expected to service both the existing population and the future population equally, the share of costs attributable to new development is based on the City’s current versus future service population.

5. Once costs have been allocated between new and existing development, they are further distributed among residential and commercial uses to arrive at a cost per resident and a cost per employee. This distribution is based on the proportion of total forecasted service population that is composed of residents and employees, respectively.

6. Once costs are allocated to a “cost per resident” and “cost per employee” basis, they are multiplied by the people per household for each residential fee category or by the employment density for each commercial fee category.

7. A 2 percent charge is added to the fee to cover the cost of administering the fee program.

EPS has prepared a table set that summarizes the “maximum allowable” development impact fee schedule for the capital facility and equipment needs as evaluated in this nexus study. The DIF revenues will be used to fund:
Parks facilities – this fee will fund, park, trail, and recreation facility improvements necessary to accommodate growth.
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Public Safety Facilities – this fee will fund police and fire capital facilities and equipment (e.g., vehicles) necessary to accommodate growth.
Transportation Improvements – this fee will fund needed additions and improvements to the City’s transportation infrastructure to accommodate future transportation volumes associated with new development. These improvements will include infrastructure that supports both vehicles as well as transit, pedestrian, bicycle, and other modes.

The table below (Attachment 2) shows the Foster City Maximum Fee Calculations for the three categories listed above including Commercial Linkage Fees.

The table below (Attachment 3) compares the maximum allowable DIF calculated for Foster City (excluding any affordable housing in-lieu fee, commercial linkage fees, school district, or utilities such as water, sewer, etc.) with those of six (6) “peer” jurisdictions (Belmont, Burlingame, Millbrae, Redwood City, San Carlos, and San Mateo).

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It must be noted that the fees shown in the table above for the peer cities under the various land use categories are their council-adopted fees currently in effect whereas the fees shown for Foster City are the maximum fees derived from the nexus studies. As shown, if approved as calculated, the Foster City DIF would put the city in the “middle of the pack” for a majority of the land use categories.

COMMERCIAL LINKAGE FEE UPDATE

Consistent with the 2015 study underpinning the City’s existing Commercial Linkage Fee, the EPS Commercial Linkage Fee Study estimates the number of workers likely to be employed in an office/medical office/R&D, retail/restaurant/services, or hotel development, the wages of those workers, and the likelihood that those workers would have household incomes that require affordable housing because they cannot afford market-rate housing in Foster City. The number of income-qualified worker households requiring affordable housing is then multiplied by the estimated subsidy required to produce each of those affordable units to calculate the full subsidy requirement, which is then divided by the assumed square footage of the employment-generating building to calculate the maximum fee per square foot.

Due to the very high cost of producing housing in Foster City and throughout San Mateo County, the maximum nexus-based fee is extremely high – hundreds of dollars per square foot, just as was determined in the 2015 study. To illustrate one potential adjustment that the City can make to determine an appropriate fee level, EPS then calculated an “adjusted 473
maximum” fee reflecting the fact that only a small proportion (7.9 percent) of employees who work in Foster City also live in Foster City, whereas the true maximum fee is calculated to provide adequate subsidy for all income- qualified employees working in Foster City regardless of where they might choose to live. While such adjustments are not legally required, they can be used and combined with feasibility considerations to justify adopting a fee below the very high maximum level.

The table below (Attachment 3) compares the Foster City Adjusted Maximum Commercial Linkage Fees with the six (6) peer jurisdictions.

Even with this potential adjustment based on commute patterns, the adjusted maximum linkage fees remain substantially higher than those charged in most jurisdictions, as shown in the table above. Charging linkage fee at these levels could present a financial challenge that potential developers and employers may not face in other communities around Foster City. Foster City’s current Commercial Linkage Fees are shown below:

Based on the comparative analysis shown in the table above (Attachment 3), if the City charged Commercial Linkage Fees equal to the average of the six peer cities, the Foster City total impact fee burden would be:
The highest of all six (6) cities for Office Development 474
The 5 th highest for Retail Development
The 4 th highest for Industrial Development; and
The 5 th highest for Hotel Development

POLICY CONSIDERATIONS IN DETERMINING FEE AMOUNTS

1. As noted above, charging higher commercial linkage fees could present a financial challenge that potential developers and employers may not face in other communities thereby, making Foster City less desirable to attract new businesses. However, a Commercial Linkage Fee on new commercial development is a way to provide funding for affordable housing projects and/or programs. The 2023-2031 Housing Element Update Policy H-A-4-d Budgeting for Housing Programs identifies the following programs that need funding sources:
i. Staffing and other resources to administer housing programs. ii. H-B-2-a: Lower Income Homeowner Rehabilitation.
iii. H-B-2-b: Facilitate Non-Profit Rehabilitation and Maintenance Assistance.
iv. H-D-4-c: ADU Financial Incentive Program.
v. H-D-6-e: Development Fee Waivers.
vi. H-E-3-c: Reduced or Waived Fees for Affordable Units. vii. H-F-2-a: Emergency Housing Assistance.
viii. H-G-2-a: Fair Housing Training for Landlords and Tenants.

2. Given the City’s continued challenges to attract retail and restaurant businesses, charging a higher restaurant/retail linkage fee may make it more challenging to attract new restaurant/retail businesses in Foster City.

3. One of the governmental factors that constrain affordable housing development are fees. In order to reduce these constraints, the 2023- 2031 Housing Element update includes the following policies and programs:
i. H-D-6-d Development Fee Waivers. Provide waivers of
development impact fees for 100% below market rate
developments with units restricted to very low- and low-income households.
ii. H-E-3 Incentives for Affordable Housing. The City shall offer development incentives to developers of multifamily housing projects which meet the City’s housing needs, in exchange for an agreement that more than twenty percent (20%) of the total number of units 475
constructed (or another percent, depending upon the project) shall be affordable to very low as defined by State Health and Safety Code Section 50105, low- and moderate-income persons and families as defined by Section 50093 of the State of California Health and Safety Code for a minimum period of 99 years for rentals and 45 years for ownership (restarting with each sale). Incentives to be considered include the following:
oDensity bonuses, as allowed by State law and Chapter 17.86. oReduced or waived fees for very low-income units if funding is available.
oAssistance and support in securing public financing, such as bonds or tax credits.

CONCLUSION

The DIFs and Commercial Linkage fees enable the City to not only proactively address the aging infrastructure needs but also address the needs of the growing community and supporting affordable housing needs. These one-time charges on new development can be used to mitigate the impacts of new development by funding a range of capital programs required to address needs related to that development, including: transportation, parks, public safety, and capital facilities including the recreation center important to the City's future and quality of life. Funds from the Commercial Linkage Fees can provide an affordable housing funding source to accomplish the housing programs and policies identified in the 2023-2031 Housing Element Update.

POLICY QUESTIONS

Based on the policy considerations listed in the previous section, the City Council has the authority to adopt fee amounts less than the maximum fee amounts and reduce or waive fees for certain types of development. Given the information in the report, staff requests City Council policy direction on the following:

1. The DIF and Commercial Linkage Fee amounts that staff should bring back for Council adoption on June 20, 2022; and

2. Whether, and to what extent, the Council would like to set the DIFs or Commercial Linkage Fees at reduced amounts or grant fee waivers for 476
certain types of development, such as affordable housing projects, affordable housing units, ADUs etc.

FISCAL IMPACT

DIF can have a positive fiscal impact to the City. DIF revenues from new development are a significant portion of the funding sources supporting the City’s CIP. DIFs alone generally do not pay for capital projects and can only fund the portion attributable to new growth. For several of the projects, DIFs provide the required “local match” to leverage and help the City secure grants and other funding assistance. Therefore, additional funding sources must be identified to pay for the portion attributable to existing deficiencies to fund projects that will help mitigate the impacts of new development on the community.

When implemented carefully, they do not reduce the City’s competitiveness to development relative to its neighboring cities; ensure other goals, like housing production, can also be met; and provide the opportunity to still gain community benefits through the Development Agreement process.

The cost to the City to maintain a DIF program is the staff time required to apply the fees upon building permit issuance, monitor the program to ensure appropriate collection and use, and manage the construction of capital projects once funds are collected. Many of these costs can be paid for by the DIF funds through the administrative charge and by charging staff time for project development as a project cost.

The estimated revenues collected from the DIFs and Commercial Linkage Fees that result from the 2022 DIF and Commercial Linkage Fee nexus studies will depend on the fee levels ultimately adopted by City Council.

NEXT STEPS

Upon the completion of the nexus studies, staff will bring the studies and recommendations to the City Council at the June 20th City Council Public Hearing adoption.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA

This item directly relates to two (2) action items, (i) Affordable Housing, and 477
(ii) Development Impact Fee Study, both included in the "Smart Planning, Development, and the Local Economy" Value/Priority Area.

Attachments:
Attachment 1 – March 11, 2021 City Council Staff Report Attachment 2 – Foster City Maximum Fee Calculations Tables Attachment 3 – Fee Comparisons with neighboring cities 478
DATE: June 20, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

FROM: Louis Sun, Public Works Director

SUBJECT: LEVEE IMPROVEMENTS PROJECT (CIP 327-657) - MAY 2022 - GENERAL UPDATE

RECOMMENDATION
It is recommended that the City Council, by Minute Order, consider and accept this progress update on the Levee Improvements Project (Project). No further action is required by the City Council.

EXECUTIVE SUMMARY
Staff will provide a verbal update of the latest Project activities at the City Council meeting. This report provides an update of Project progress and budget impacts with current expenditures detailed in an attached work sheet.

Highlights of Project progress and pictures, since the last City Council update on May 16, 2022, are included in the attached Construction Manager’s Report and listed below:
Staff is continuing conversations with various regulatory agencies regarding the mitigation requirement to provide full tidal action into O’Neill Slough. Staff will provide a verbal update to City Council after hearing back from the regulatory agencies whether the muted tidal action can continue until a later date.
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The Baffin Street Bridge was re-opened on June 6, 2022 for pedestrian and bicycle traffic in anticipation of the Contractor commencing operations for the bridge at the Egress location (the western access to Belmont from Rock Harbor Lane). Since regulatory agencies have provided their consent to work in portions of Phase 1, construction operations will be focused to prepare for the installation of the precast concrete Egress Bridge.
The Contractor continues to work within Phase III (San Mateo Bridge to northerly of Mariner’s Point) of the Project. The work includes Floodwall 4 placement near Baywinds Park, embankment fill along East Third Avenue near Anchor Road, excavation for Floodwalls 1 & 2 and concrete footing placement for Floodwall 2 near Mariner’s Point, excavation for Retaining wall 1 south of Baywinds Park, construction of bay-side paths along Floodwalls 5 & 8, and work adjacent and around the Lagoon outfall structure south of Baywinds Park.
Adjacent to Bayside Towers, construction of the new pedestrian bridge continues. The Contractor has completed the demolition and subgrade excavation for the north and south abutments to install the bridge at Access Point 9.
The Contractor continues construction operations under the San Mateo Bridge in accordance with the encroachment permit received from Caltrans. Progress related to flood wall 25 and 10 continues to be made. The Contractor has completed the backfill operation for the Floodwall 11 footings near Werder Pier.
The Contractor continues to work along Beach Park Boulevard.

Completed and upcoming work within Phase II includes, but is not limited to, trail slope fine grading, installation of erosion control fabric, placement of mulch, ice plant planting, construction of bay side paths and access points, street light foundations, irrigation and other landscaping.
The Contractor has completed approximately 3.8 miles of the 4.2 miles of the revised concrete cap for the top of the installed sheet piles (CCO #9- $110K; and #10- $932K). The portion of the concrete cap that parallels Beach Park Boulevard within Phase II of the Project is complete. The remaining concrete cap is primarily within Phase III 480
between Baywinds Park and the San Mateo Bridge and portions of Phase I.
The Contractor continues to work on the block retaining walls related to CCO #20, which include retaining walls 2 and 4 that extend along the Bayside Towers property in Phase III. Significant progress has been made on retaining wall 4 and will be completed following the construction of access point 10 near the San Mateo Bridge next to the Bayside Towers parking lot. The Contractor is providing additional resources to complete the approximately 2,000 linear feet for retaining wall 2.
Staff continues to monitor the Safe Routes to School plan for Bowditch Middle School and other locations that may be affected by the Project. While the 2021-22 school year has been completed, staff will continue to monitor any summer school programs to provide feedback to school personnel about the dropping off and picking up of students as well as the walking and biking by students to any programs.

Current Schedule Timeline
Award of Contract: July 20, 2020
Notice to Proceed: September 28, 2020
Phase 1 Bay Trail Closure - Opening: October 2020 - January 2023 Phase 2 Bay Trail Closure - Opening: January 2021 - November 2022 Phase 3 Bay Trail Closure - Opening: April 2021 - January 2023 Project Substantial Completion: August 2023
Project Completion: January 2024

PROJECT BUDGET AND COST/EXPENSES
The Project continues to be on time and within budget and expenses continue to trend as anticipated.

Summary of known costs to date:
Total Budget/ Bond Measure: Budget = $87M Bond Measure = $90M; Bonds Released = $85M; Additional City reserves for Project if necessary = $10M
Bid: Shimmick: $60.2M; and $9M contingency for change orders Payments: Shimmick: $43M; Others: $11.8M; Total: $55.1M 481
Change Orders Approved: As of 06/06: CCO #1-23 = $4.7M Change Orders Anticipated: TBD

FISCAL IMPACT
There are no fiscal impacts associated with this project update.

Fiscal impacts to the Project are presented to City Council as separate agenda items.

Staff will be seeking the City Council’s approval of two contract change orders at future meetings. The first change order is necessary due to a change in mix design required for the lightweight cellular concrete (LCC) backfill material.

Additional cement was necessary to be added to the LCC mixture for higher dry densities to achieve the required strength while balancing the amount of settlement anticipated to the backfill behind the levee. Staff has been advising City Council about this upcoming change order as part of several monthly updates. This change order has not yet been presented to the City Council due to other Project related priorities being addressed by staff. A detailed staff report will be presented by staff at a future City Council meeting.

The second contract change order is due to plan modifications including path widening and the replacement of six staircases with six ADA-compliant ramps. The design changes are necessary to ensure the project is in compliance with ADA requirements. A detailed staff report will be presented by staff at a future City Council meeting.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
The Levee Improvements Project is in alignment to the City Council's adopted Vision and Mission statements, in that it seeks to create a sustainable environment through infrastructure improvements for current and future generations to come. This item is also directly related to the "Facilities and Infrastructure" Value/Priority Area. The key outcome is to make substantial progress toward an improved levee on time and budget to protect the community and critical infrastructure from storms and high tide.

Attachments:
Attachment 1 - Monthly Construction Manager's Report - May 2022 482
Attachment 2 - Expenditure Report as of May 31, 2022
Attachment 3 - Memorandum and Communications Metrics - May 2022 Dashboard Report
483
MONTHLY CONSTRUCTION MANAGER’S REPORT
Foster City Levee Improvements Project
City Project No. CIP 301-657
Contractor: Shimmick Construction Co Report Period: May 1-31, 2022 CM: Tanner Pacific, Inc.

Designer: Schaaf & Wheeler
Original Contract
Duration
(Calendar Days):

Days Elapsed: 580 % E lapsed: 48.3%
Substantial Final
Completion Completion
Date: Date:

Original Contract Approved Revised
Contract
Value: CCOs: Val ue:

Contingency: $9,000,000.00 Remaining
Contingency: $ 4,314,075.82 % Contingency
Used: 52%
Costs Billed to Date: $43,475,234.19 % of Contract
Billed to Date: 67%
$60,218,000.00 $ 4,685,924.18 $64,903,924.18
Contract/Schedule Update
1200 Additional Days
Granted: 0 Calendar Days
Remaining: 620
Notice To Proceed: 9/28/2020 10/2/2023 1/10/2024
Cost Management Update
Attachment 1
484
MONTHLY CONSTRUCTION MANAGER’S REPORT

Work Summary
Recently Completed:

• Floodwall 4 placement (near Baywinds Park)
• Embankment fill from Sta. 0+50 – 9+00 (E. 3rd Ave near Anchor Rd.) • Excavation for subgrade of Floodwall 1 & 2 near Sta. 11+00 (near Mariner’s Point Golf Center) • Floodwall 2 concrete footing placement near Sta. 11+00 (near Mariner’s Point Golf Center) • Excavation for Retaining Wall 1 construction near ~Sta. 50+00 (south of Baywinds Park) • Demolition and subgrade excavation of the north abutment of the AP-9 pedestrian bridge foundation near Sta 85+00 (northwest of the SM Bridge)
• Floodwall 11 backfill near Sta. 100+00 (near SM Bridge) • Commencement of slope fine grading, erosion control fabric, and mulch along Beach Park Blvd in Phase II
• Commencement of ice plant planting on the levee slopes along Beach Park Blvd in Phase II • Bayside grading and rock slope protection placement at AP 17 (north of Shorebird Park) • Subgrade & initial block placement for Retaining Wall 30 near Sta. 187+00 (north of Shorebird Park)
• Authorization to perform work by regulatory agencies on bird nesting protocol surveys for 2022 in some sections of Phase III (Shorebird Park to Southern Project Limit) • Shop inspection at precast concrete facility for construction of Egress Bridge

Upcoming:

• Continued submittals for landscaping, irrigation, striping, and site furnishings • Continued import of materials to staging areas
• Continued construction for concrete floodwalls from ~Sta. 0+00 – Sta. 100+00 (E. 3rd Ave to SM Bridge)
• Final rebar and concrete placements of Floodwalls 1 & 2 near Sta. 11+00 (near Mariner’s Point Golf Center)
• Continued construction of bay-side paths along Floodwalls 5 & 8 (Phase III) • Lagoon outfall structure work at ~Sta. 70+00 (Phase III) • Continued construction of Retaining Wall 02 (northwest of the SM Bridge) • Demolition and subgrade excavation of the south abutment of the AP-9 pedestrian bridge foundation near Sta 85+00 (northwest of the SM Bridge)
• Rebar and concrete for the AP-9 pedestrian bridge foundations near Sta. 85+00 (northwest of the SM Bridge)
• Completion of Retaining Wall 04 blocks and lightweight concrete fill (northwest of the SM Bridge)
• Continued construction of bay-side paths along Floodwall 12 (Phase II, Beach Park Blvd) • Concrete flatwork at access points in Phase II, Beach Park Blvd. • Completion of street light foundations along Phase II, Beach Park Blvd • Continued irrigation installation along Phase II (Shorebird Park to Bridgeview Park) • Continued landscaping work along Phase II (Shorebird Park to Bridgeview Park) • Access Point 24 Retaining Walls near Sta. 185+00 (north of Shorebird Park) • Traffic Detour Switch from Egress Bridge to Baffin St. Bridge 485
MONTHLY CONSTRUCTION MANAGER’S REPORT

Monthly Progress Photos

Retaining Wall 01 block placement near Baywinds Park in Phase III.

Rebar and formwork placement for Floodwall 2 near Mariner’s Point Golf Center in Phase III.

Retaining Wall 37 construction near the Baffin Street
Bridge in Phase I.

Coir fabric and mulch placement on the levee slopes along Beach Park Blvd in Phase II.
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Levee Project Approved Budget: 85,000,000.00$
Vendor Name or Expense Consultant Role or Expense Category Base Contract Amount
Contingency Contract
Amendments
Current Contract
Authority
Amount
Total
Expected/Actual
Cost
Invoices Received
and Paid As Of
05/31/22
Contingency
Spent
Contingency
Remaining
Status
Shimmick Construction Construction Contractor 60,218,000.00$ 9,000,000.00$ 69,218,000.00$ 69,218,000.00$ $42,910,813.20 $4,685,924.18 $4,314,075.82 Active Tanner Pacific (TPI) Construction Management and Inspection 6,698,877.00$ 300,000.00$ 491,500.00$ 7,490,377.00$ 7,550,000.00$ $4,266,507.05 $0.00 $300,000.00 Active Schaaf & Wheeler (S&W) - Phase 3 Engineering Consultant 2,600,000.00$ -$ 208,745.00$ 2,808,745.00$ 3,100,000.00$ $2,246,570.39 N/A N/A Active Urban Planning Partners (UPP) Planning Consultant - EIR 340,404.00$ 51,061.00$ 70,099.00$ 461,564.00$ 470,000.00$ $436,823.79 $51,061.00 $0.00 Active Regional Government Services Authority (RGS) Project Advisory Services** 561,600.00$ -$ -$ 561,600.00$ 561,600.00$ $186,507.00 N/A N/A Active Tripepi Smith (TS) Communications / Outreach Consultant 49,000.00$ -$ 61,000.00$ 110,000.00$ 110,000.00$ $93,478.75 N/A N/A Active Tripepi Smith (TS) Communications / Outreach Consultant 127,056.00$ -$ -$ 127,056.00$ 127,056.00$ $73,053.75 N/A N/A Active Huffman-Broadway Group (HBG) Environmental Consultant - Post Construction Environmental Monitoring
275,000.00$ 275,000.00$ $0.00 $0.00 $0.00 Future Contract Wilsey Ham (WH) RUNCO Survey 16,518.00$ -$ -$ 16,518.00$ 17,000.00$ $4,825.00 N/A N/A In Progress Wilsey Ham (WH) On-Call Surveyor 44,946.00$ 4,000.00$ -$ 48,946.00$ 50,000.00$ $9,230.00 $0.00 $4,000.00 In Progress Bender Rosenthal, Inc. (BRI) Property Acquisition Consultant 218,083.00$ 31,000.00$ 249,083.00$ 249,083.00$ $13,175.50 $0.00 $31,000.00 In Progress Miscellaneous Expenses Other Miscelleneous Expenses 40,000.00$ 40,000.00$ $62,724.87 Active Miscellaneous Expenses Communications / Outreach Expenses 40,000.00$ 40,000.00$ $23,703.24 Active Miscellaneous Expenses Fees Paid to Other Agencies 200,000.00$ 200,000.00$ $179,997.64 Active Miscellaneous Expenses Property Acquistion Cost of acquisition 100,000.00$ 100,000.00$ $0.00 In Progress Burke, Williams & Sorenson, LLP* City Attorney $ 500,000.00 $ 500,000.00 $366,730.62 Active TBWB Strategies (TBWB) Public Outreach 29,986.00$ 119,565.00$ 149,551.00$ $141,427.04 $141,427.04 Closed Rutan & Tucker (R&T) Attorney 53,874.86$ 53,874.86$ $53,874.86 $53,874.86 Closed EMC Research, Inc. (EMC) Public Opinion Research 44,000.00$ 2,500.00$ 46,500.00$ $46,500.00 $46,500.00 Closed SCI Consulting (SCI) Public Finance Consultant 110,000.00$ 110,000.00$ $37,168.72 $37,168.72 Closed Kitahata Company + William Euphrat Municipal
Finance, Inc. (KC&WE)
Public Finance Advisory Consultant 80,000.00$ 80,000.00$ $24,610.50 $24,610.50 Closed Stradling, Yocca, Carlson & Rauth (SYCR) Attorney - Bond Counsel 15,000.00$ 15,000.00$ $15,000.00 $15,000.00 Closed Huffman-Broadway Group (HBG) Environmental Consultant 20,000.00$ 20,000.00$ $19,980.65 $19,980.65 Closed Schaaf & Wheeler (S&W) - Phase 1 Engineering Consultant 887,644.00$ 887,644.00$ $887,430.58 $887,430.58 Closed Schaaf & Wheeler (S&W) - Phase 2 Engineering Consultant 2,324,286.00$ 529,150.00$ 2,853,436.00$ $2,853,649.42 $2,853,649.42 Closed Miscellaneous (MISC)- Keech Properties LLC Levee Mitigation Credits/Expenses 170,000.00$ 170,000.00$ $170,000.00 $170,000.00 Closed Chrisp Striping for Edgewater 16,764.55$ 3,000.00$ 19,764.55$ $15,818.40 $15,818.40 $3,000.00 Closed 74,626,039.41$ 9,389,061.00$ 86,873,199.17$ $55,139,600.97 *Includes former City Attorney fees
**Assumes 3 years ($187,200 each year) Total Contract Authority Cost: 86,652,659.41$ Levee Project - Budget Cost: 86,873,199.17$ Assuming using all contingencies

ONGOING AND FUTURE

CONTRACTS AND EXPENSESMISCC LOSED CONTRACTS

CITY OF FOSTER CITY
CIP 327-657 Levee Improvements Project
Budget and Cost Information
Attachment 2
487
City of Foster City

MEMORANDUM
DATE: June 3, 2022
TO: Mayor and Members of the City Council
VIA: Edmund Suen, Interim City Manager
FROM: Jennifer Nentwig, Director, Tripepi Smith
SUBJECT: LEVEE IMPROVEMENTS PROJECT – COMMUNICATIONS METRICS Tripepi Smith would like to share the attached updated Levee Improvements Project Communications Dashboard Report with the Mayor and Members of the City Council. In the report, you will see that the metrics now reflect our communication efforts through the month of May 2022.

As a reminder, t his report is a su mmary that our team typically develops at the end of each month. It includes data on website traffic, social media engagement, community forum participation, and the number and rate of project email and hotline contacts. While Tripepi Smith has been involved in project communications since January 2021, we have pulled numbers (where available) going back to October 2020 to provide a baseline for comparison.

I would like to highlight a few items of note:
• In May 2022, the City gained approximately 161 new followers/subscribers across all social platforms (Facebook, Twitter, Instagram, Nextdoor and the Levee E - Newsletter).
• The number of Levee Project inquiries in May 2022 totaled 15, compared to 7 inquiries in April 2022. The increase in inquiries was to be expected, especially as there are more project milestones, like the upcoming Baffin Bridge reopening. The overall number of inquiries remains relatively low and comparable to previous months.
• Public Works Director Louis Sun and Sen ior Civil Engineer Francine Magno presented a levee update at to the Foster City Rotary Club in May 2022.

Additionally, the project team participated in a planning meeting for an upcoming event and presentation with the Project Management Institute (PMI) that is expected to take place in September 2022.

Attachment 3
488

• Though reach and engagements dropped compared to last month, it’s im portant to note that April 2022 had unusually high reach and engagement. Metrics for May 2022 are still comparable with other months.

• May 2022 earned the highest number of Twitter impressions since November 2021. Twitter engagements in May 2022 were the highest since January 2022.

• Website visitors have increased to 4,827 in May 2022, compared to 3,568 in April 2022. This increase is likely due to updated communications regarding project milestones, such as the Baffin Bridge reopening. The announcement was made in a press release published on the project website and additional FAQs related to the reopening were added to the FAQs webpage. The updated information likely drove the increase in web traffic.

• There have been no new levee petition signatures since August 2021.

Our team is actively monitoring the metrics to analyze the effectiveness of various types of communication and to align the cadence of our efforts to the community’s interest levels. We believe that the City’s proactive social media communications are leading to fewer people having questions or concerns about the project in general – reflecting positively on overall outreach and engagement efforts.

During May 2022, social media reach and engagement remained steady, while the number of project website visitors increased by 1,259 from last month. Approximately 155 people visited the project website per day in May 2022. This is likely due to new information that was published related to the highly anticipated Baffin Bridge reopening and social media posts promoting the website.

The construction team will continue work with the project team to provide updated information to the Recreational Water User community once a definitive work schedule is available. Any new information will be updated on the project website and social media, which will likely drive traffic to the project’s channels.

As you review the full report, please feel free to let me know if you have any questions. I would be happy to walk you through the report one -on-one if it would be helpful, and we will continue to refine the metrics over time to best meet the project’s needs.

489
1 Levee Project CommunicationsPrepared by: Danielle RodriguezMonthly Dashboard ReportMay 2022 FOLLOWERS / SUBSCRIBERSCity FacebookCity TwitterCity Instagram [1]City Nextdoor [2]Levee E-Newsletter Total Audience2020 - November1,8041,385 - - 8022020 - December1,8291,392 - - 8022021 - January1,8791,4121,35013,5061,0072021 - February1,9191,4251,38513,7011,0952021 - March2,0591,4311,47913,8311,1082021 - April2,1091,4541,51013,9571,1612021 - May2,1221,4571,51414,1281,1822021 - June2,1351,4581,53114,1861,1922021 - July2,1681,4731,54714,2931,1952021 - August2,1741,4841,56514,3811,2002021 - September2,4001,4931,58714,4931,2022021 - October2,4131,5121,61714,5951,2002021 - November2,4361,5251,63414,6911,2032021 - December2,4451,5311,65314,7291,2072022 - January2,4591,5351,67014,7661,2172022 - February2,4671,5431,68414,8311,2212022 - March2,4781,5521,70414,8951,2292022 - April2,5001,5761,71514,9811,2332022 - May [3]2,5251,5851,73815,0791,239

LEVEE COMMUNITY FORUMS
COMMUNITY UPDATE WEBINARS# Webinars# Participants# Questions Answered via Webinar PROJECT TOURS/ SPEAKING EVENTS [4]# of EventsDescription2020 - November- - - 2022 - January2 1 Project Tour with the City of Corte Madera, 1 Presentation to APWA Silicon Valley [5] 2020 - December- - - 2022 - February5 4 Project Tours with the City of Foster City City Council, 1 Presentation to Hillsdale United Methodist Church [6] 2021 - January1 148 20 2022 - March2 1 Presentation to County Engineers Association, 1 Presentation at 2022 Silicon Valley Women in Engineering Conference [7]2021 - February1 97 45 2022 - April2 1 Presentation at the Ciy's Parks & Recreation Meeting, 1 Presentation at Infraday [8]2021 - March1 48 20 2022 - May1 1 Presentation to Foster City Rotary Club [9]2021 - April1 28 202021 - June0 0 02021 - July0 0 02021 - August1 20 202021 - September0 0 02021 - October0 0 02021 - November0 0 02021 - December0 0 02022 - January0 0 02022 - February0 0 02022 - March0 0 02022 - April0 0 02022 - May0 0 0 NUMBER OF LEVEE EMAILS/CALLSProject Email/Hotline ContactsAvg. Email/Hotline Contacts/Day2020 - November15 0.52020 - December25 0.82021 - January69 2.22021 - February53 1.92021 - March46 1.52021 - April21 0.72021 - May22 0.72021 - June16 0.52021 - July48 1.52021 - August16 0.52021 - September16 0.52021 - October8 0.22021 - November14 0.42021 - December8 0.22022 - January4 0.12022 - February8 0.22022 - March12 0.32022 - April7 0.22022 - May15 [10]0.4 490
2 NUMBER OF LEVEE PROJECT POSTS [11]City FacebookCity Twitter [12]City Instagram*City Nextdoor2020 - November1 1 0 02020 - December4 4 0 12021 - January8 7 5 22021 - February7 12 7 12021 - March12 21 9 22021 - April7 20 4 162021 - May5 8 1 72021 - June8 13 2 32021 - July9 17 2 22021 - August9 18 1 12021 - September10 16 0 02021 - October7 9 0 02021 - November10 10 0 12021 - December9 9 0 02022 - January7 9 0 02022 - February8 9 0 12022 - March11 11 1 12022 - April8 9 0 02022 - May9 10 0 0*During the months October - December 2020 the City did not post levee related items on the City's Instagram page. In January 2021, Tripepi Smith made the first levee related post.

LEVEE POST IMPRESSIONS/REACHCity Facebook - Post ReachCity Twitter - ImpressionsCity Instagram - Impressions [13]City NextdoorTOTAL2020 - November259 399 0 0 6582020 - December1,3001,391 0 2447*2,6912021 - January61,00615,9492161 192281,0382021 - February17,492**3,7112,192 924 6,8272021 - March60,1558,7533,5552,28274,7452021 - April11,8385,5431,49610,78929,6662021 - May1,4352,786 346 5,1469,7132021 - June2,0083,377 545 2,6488,5782021 - July8,8354,643 599 1,71515,7922021 - August3,3494,318 340 967 8,9742021 - September1,8082,568 0 0 4,3762021 - October3,7961,257 0 0 5,0532021 - November3,7221,809 0 1,5547,0852021 - December4,4411,397 0 0 5,8382022 - January869 1,265 0 0 2,1342022 - February2,7011,078 0 1,0624,8412022 - March1,4751,293 355 797 3,9202022 - April6,4401,214 0 0 7,6542022 - May3,047 [14]1,529 [15]0 0 4,576 LEVEE POST ENGAGEMENT [16]City Facebook - Post EngagementsCity Twitter - EngagementsCity InstagramCity Nextdoor - Thanks & RepliesTOTAL2020 - November13 7 0 0 202020 - December63 90 0 17 1702021 - January3,776 604 2,101 13 6,4942021 - February1,278 142 2,019 3 3,4422021 - March2,801 183 3,291 1 6,2762021 - April1,192 100 1,333 11 2,6362021 - May65 67 309 2 4432021 - June87 60 94 13 2542021 - July875 161 13 4 1,0532021 - August90 122 13 1 2262021 - September46 37 0 0 832021 - October128 52 0 0 1802021 - November284 66 0 4 3542021 - December108 21 0 0 1292022 - January85 61 0 0 1462022 - February159 27 0 2 1882022 - March90 26 6 0 1222022 - April411 34 0 0 4452022 - May395 52 [17] 0 0 447 LEVEE WEBSITE ANALYTICS2020 - November # of Vistors2020 - December # of Vistors2021 - January # of Vistors2021 - February # of Vistors2021 - March # of Vistors2021 - April # of Vistors2021 - May # of Vistors2021 - June # of Vistors2021 - July # of Vistors2021 - August # of Vistors2021 - September # of Vistors2021 - October # of Vistors2021 - November # of Vistors2021 - December # of Vistors2022 - January # of Vistors2022 - February # of Vistors2022 - March # of Vistors2022 - April # of Vistors2022 - May # of Vistors [18]Average Visits Per Day [19]Average Visit Length (Minutes)fostercity.org [20]2940 3423 4601- - - - - - - - - - - - - - - - - -fostercitylevee.org [21]- - - 4,3299,145 4,5014,163 4,9424,9263,7672,790 2,6372,7522,1103,0133,0172,6283,5684,827 155 1:25 491
3 LEVEE PETITIONPetition Signatures2021 - February2,7192021 - March2,7192021 - April2,7202021 - May2,7222021 - June2,7222021 - July2,7232021 - August2,7222021 - September2,7222021 - October2,7222021 - November2,7222021 - December2,7222022 - January2,7212022 - February2,7212022 - March2,7212022 - April2,7212022 - May [22]2,721

TOP LEVEE PROJECT SOCIAL MEDIA POSTS
City FacebookThe top Facebook post during May 2022 for the Levee Project was related to the Baffin Bridge reopening, which was a highly-anticipated milestone for the community.City TwitterThe top Tweets in May 2022 for the Levee Project shows residents/followers interacted the most with a Tweet highlighting Other top posts contained information related to new FAQ's posted on the website, as well as general information highlighting the project website's FAQ page. the project for Public Works Week, Safety Tip of the Week posts and project milestones, like the announcement of the Baffin Bridge reopening.

City InstagramThe Levee Improvements Project did not post on Instagram in May 2022.

Zencity Insights
Most Popular Topics: Conversation items classified by topic, arranged from highest number of interactions to lowest.Popular Words: The words that appear most frequently across your channels.

BOOSTED LEVEE PROJECT POSTSTripepi Smith did not boost any levee project-related social media posts in May 2022. 492
4 NOTABLE LEVEE PROJECT MEDIA MENTIONSPlatformGroup Post URLFacebookFoster City Together https://www.facebook.com/groups/347395922628639 FacebookFoster City Together https://www.facebook.com/groups/347395922628639 493
5 FacebookFoster City Together https://www.facebook.com/groups/347395922628639 FacebookFoster City Together https://www.facebook.com/groups/347395922628639

OTHER NOTABLE LEVEE PROJECT SUPPORT
Social media monitoring Since January 2021, Tripepi Smith began monitoring the City's social media sites daily to ensure items relating to the Levee Project are intact and to ensure there is no misinformation being shared. Tripepi Smith has been able to comment back to several followers regarding questions or clarification. Detour Map Tripepi Smith created an updated detour map due to the Baffin Bridge reopening, which is expected to reopen to the public in June 2022. Presentation RequestsTripepi Smith participated in a planning meeting with Public Works Director Louis Sun and the Project Management Institute (PMI) to discuss logistics for a presentation/event in September 2022. 494
6 [1] Due to the recent connectivity with Sprout Social, the metrics generator, we were unable to retrieve the followers metrics for previous months. [2] Nextdoor metrics does not archive the previous months members metric. It must be calculated at the first of the month. [3] Followers/subscribers continue to rise across all platforms. [4] This is a new section as of January 2022.
[5] The Levee Improvements Project team took the City of Corte Madera's Public Works Director, Planning Manager and Senior Civil Engineer on a tour of the project site.
[6] The Levee Improvements Project team took the Foster City City Council on four separate project tours in February 2022, which is also where Mayor Awasthi filmed an episode of "The Mayoral Minute." Additionally Public Works Director Louis Sun and Senior Civil Engineer Francine Magno gave a presentation to Hillsdale United Methodist Church.
[7] The Levee Improvements Project team participated at the 2022 CEAC Spring Conference. Additionally, Senior Civil Engineer Francine Magno presented at the 2022 Silicon Valley Women in Engineering Conference in March 2022. [8] Senior Civil Engineer Francine Magno provided a levee update at the City's Parks & Recreation meeting and Public Works Director Louis Sun gave a presentation at the Infraday Conference in Los Angeles. [9] Public Works Director Louis Sun and Senior Civil Engineer Francine Magno provided a levee update to the Foster City Rotary Club. [10] Project inquiries in May 2022 doubled from the month prior, largely in part due to questions on the upcoming Baffin Bridge reopening, as well as general questions about the project timeline. The number of inquiries still remains low overall. [11] Number of posts is only relating to the Levee Improvements Project. [12] Due to the character limit on Twitter, some Tweets had to be posted in a thread (series of Tweets about one topic). [13] Instagram Impressions: The number of times your content is displayed, no matter if it was clicked or not. [14] Though Facebook post reach declined in May 2022 compared to the month prior, it's important to highlight that April 2022 earned a higher-than-usual reach.

Total Facebook reach for May 2022 is still above-average compared to other months. [15] Twitter impressions for May 2022 were the highest since August 2021. [16] Facebook Engagement: Calculated based on the number of likes, comments, shares, and clicks your posts are generating Instagram Engagement: Anytime a user likes, shares or comments on one of your posts.

Twitter Engagement: Total number of times users interacted with a Tweet (clicks anywhere on the Tweet including Retweets, replies, follows, likes, links, cards, hashtags, embedded media, username, profile photo, or Tweet expansion). 495
7 [17] May 2022 marked the highest number of Twitter engagements since January 2022. [18] May 2022 earned the highest number of website visitors since July 2021. This significant increase in traffic is largely due to the Baffin Bridge reopening announcement, which was highly anticipated in the community. A press release and new FAQs related to the reopening were posted on the website, likely driving most of the traffic.
[19] Average visits per day in May 2022 increased to about 155 visitors a day compared to approximately 119 website visitors in April 2022. [20] This data was retrieved from the highest trafficked Levee URLs:
/publicworks/project/levee-improvements-project-cip-301-657 /community/page/levee-trail-close-shorebird-park-san-mateo-bridge-early-january /publicworks/page/levee-improvements-project-what-will-improved-levee-look /publicworks/page/levee-improvements-project-latest-construction-updates [21] The new Foster City Levee Project webpage was created in Feb. 2020. There was no data from Oct. - January. However, data will only populate under this new website from Feb. on.
[22] There have been no new signatures since August 2021 and an additional signature was removed from the petition in January 2022. 496
DATE: June 20, 2022

TO: Mayor and Members of the City Council

VIA: Edmund Suen, Interim City Manager

FROM: Benjamin Stock, City Attorney

SUBJECT: PROPOSED ORDINANCE AMENDING CHAPTER 15.12 (SIGN CONTROL) OF TITLE 15, BUILDINGS AND CONSTRUCTION

OF THE FOSTER CITY MUNICIPAL CODE

RECOMMENDATION

It is recommended that the City Council introduce by title only and waive further reading of an ordinance amending sections 15.12.010 (Purpose, objective, intent), 15.12.020 (Definitions), 15.12.170(J) (Exempt Signs- Political Signs) and 15.12.180 (Temporary Signs) within Chapter 15.12 of Title 15 of the Foster City Municipal Code Relating to Temporary Non-Commercial Right-of-Way Signs.

EXECUTIVE SUMMARY
At the May 2, 2022 City Council meeting, the City Council was advised by the City Attorney that revisions would be made to the City’s regulations relating to political signs. The proposed ordinance would amend sections 15.12.010 (Purpose, objective, intent), 15.12.020 (Definitions), 15.12.170(J) (Exempt Signs-Political Signs) and 15.12.180 (Temporary Signs) within Chapter 15.12 of Title 15 of the Foster City Municipal Code Relating to Temporary Non- Commercial Right-of-Way Signs.
497

BACKGROUND/ANALYSIS

The Foster City Municipal Code contains general regulations for signs in Chapter 15.12 (“Sign Ordinance”) and requires permits for certain signs. The FCMC currently exempts “Political Signs” from seeking any permit, and the City has traditionally allowed these signs in various locations throughout the City on certain public rights-of- way. The current proposed changes to Chapter 15.12 relate to the United States Supreme Court decision in Reed v.

Town of Gilbert (2015) 576 US 155, which found in part, that sign regulations that identify categories of signs such as “Ideological Sign,” or “Political Sign,” may violate the First Amendment because those regulations are based on the content of the speech set forth in the signs. However, it is acceptable to subject signs to content neutral regulations based on, for example, the size of the sign, location (e.g., private versus public property), or the materials used to create the sign. Government regulation of expressive activity is content- neutral if it is justified without reference to the content of the regulated speech. (Clark v Community for Creative Non-Violence (1984) 468 US 288, 293). Staff will be conducting a more comprehensive update to the Sign Ordinance in light of the Reed v. Town of Gilbert decision; however, in the meantime the proposed amendments will replace the regulations for “Political Signs” to specify that Temporary Non-Commercial Right of Way signs may be placed in the City’s right of way, without a permit, in certain locations and at specified times.

The proposed ordinance would amend sections 15.12.010, 15.12.020,

15.12.170(J) and 15.12.180 of the Sign Ordinance and is attached as Attachment 1. A document showing the changes between the existing Sign Ordinance and the proposed ordinance is attached as Attachment 2 (Redline).

Should these Code amendments be adopted by the City Council, the changes would become effective thirty (30) days after adoption. The duration of these signs being allowed within the public right-of-way would remain ninety (90) days before any election, and would need to be removed ten (10) days after the election.

FISCAL IMPACT
There is no direct fiscal impact associated with the recommended action. 498

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREAS
This requested action is in alignment with the City Council’s Vision and Mission to “create a sustainable Foster City through inclusive actions to enhance our quality of place for current and future generations.” Furthermore, this item aligns with key strategic Value/Priority Areas, including “City Council Operations and Improved Community Engagement.”

Attachments:
Attachment 1 – Proposed Ordinance
Attachment 2 – Redline
499
ORDINANCE NO. _________
AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTIONS 15.12.010 (PURPOSE, OBJECTIVE, INTENT), 15.12.020 (DEFINITIONS), 15.12.170(J) (EXEMPT SIGNS-POLITICAL SIGNS) AND 15.12.180 (TEMPORARY SIGNS) WITHIN CHAPTER

15.12 (SIGN CONTROL) OF TITLE 15, BUILDINGS AND CONSTRUCTION OF THE

FOSTER CITY MUNICIPAL CODE RELATING TO TEMPORARY NON-COMMERCIAL

RIGHTS-OF-WAY SIGNS

CITY OF FOSTER CITY
WHEREAS, the City of Foster City’s (“City”) sign regulations in Chapter 15.12 of the Foster City Municipal Code (“Sign Ordinance”) is intended to regulate signs located on property within the City over which the City has regulatory authority; and WHEREAS, the Sign Ordinance maintains and enhances the City’s appearance by regulating the design, character, location, number, quality of materials, size, illumination, and maintenance of signs; and
WHEREAS, the Sign Ordinance also minimizes the possible adverse effects of signs on nearby public and private property, including streets and public rights-of-way; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Recitals. The foregoing recitals are true and correct and incorporated herein as findings which are the basis for the amendment.

Section 2. Amendment. Section 15.12.010 (Purpose, objective and intent) within Chapter 15.12 of Title 15 of the Foster City Municipal Code is amended to repeal Section

15.12.010 in its entirety and replace Section 15.12.010 to read as follows:
“15.12.010 Purpose, objective and intent.

The purpose of this chapter is to establish standards for signage which help people find what they need without difficulty or confusion and to help preserve and improve the appearance of the city. Therefore, all signs shall be regulated to assure that they promote both the goals and objectives of the community and the public health, safety and general welfare.

This chapter establishes standards for the erection, display, safety and maintenance of signs which are intended to meet the following objectives:
500
Public Welfare. The city, as a unique planned community, has greatly avoided the Influences of traditional community development where signing proliferated to a point detrimental to the value and quality of the community before being regulated.

The opportunity to achieve an environment free from such circumstances exists in the city and therefore shall be pursued wherever possible in order to build a community of the highest value and quality in which all citizens may take pride and enjoyment.

Healthy Economy. An objective of this chapter is to allow businesses to identify themselves so that clients can find them with a minimum of confusion. This is achieved by effective signing which is necessary, concise, well-designed and well- executed. It is recognized that signs are an economical and effective means of communicating information and are thus an important asset to most businesses.

Freedom of Speech for Signs. The city recognizes the importance of signs in the exercise of free speech. The city finds it necessary to regulate the time, place and manner of the placement of certain signs for the following reasons:

1. Prohibition of temporary non-commercial right-of-way signs on public street medians, bridges, public utility box or any poles used for public utility, traffic control signs, traffic signals, or street signs is necessary to: prevent visual distractions to motorists which create traffic hazards, prevent unsafe road conditions, and to prevent eyesores from proliferating along public streets.

2. Regulation of the size of temporary non-commercial right-of-way signs is necessary for safety and aesthetic reasons, specifically, that the strong winds that are common in Foster City would remove the signs, creating hazards and accumulation of debris, and extremely large or illuminated signs would create a distraction to motorists.”
Section 3.Amendment to Section 15.12.020 (Definitions) within Chapter 15.12 of Title 15, Buildings and Construction of the Foster City Municipal Code is amended to add a definition as indicated in underline and to delete a definition as indicated in strikethrough as follows:
“Temporary Non-Commercial Right of Way Sign” means a temporary sign for non- commercial purposes located in the City’s Right of Way. “Temporary Non- Commercial Right of Way Signs” shall not be subject to the provisions of Section

15.12.180”
“Political sign” means a sign associated with a candidate for elected office or ballot measure”
Section 4. Amendment to Section 15.12.170 (Exempt Signs) within Chapter 15.12 of Title 15 of the Foster City Municipal Code is amended to repeal subsection (J) in its entirety and replace subsection (J) to read as follows:
501
“15.12.170 (J) Temporary Non-Commercial Right-of-Way Signs which meet the following criteria:

1. Temporary Non-Commercial Right-of-Way Signs shall not be placed in any public street median, or on any bridge, public utility box, or any pole used for public utility, traffic control signs, traffic signals, or street signs. These signs are deemed to create a hazardous condition and shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

2. Temporary Non-Commercial Right-of-Way Signs shall not be placed in or along public rights-of-way such that they are considered by the city to be a sight distance problem for the drivers of vehicles, or which interfere or distract from the traffic control devices in place, or which interfere with safe bicycle or pedestrian circulation. These Temporary Non-Commercial Right-of-Way Signs are deemed to create a hazardous condition and shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

3. Temporary Non-Commercial Right-of-Way Signs shall not be placed in any public parks and shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

4. With the exception of public parks, Temporary Non-Commercial Right-of-Way Signs may be placed on public property within the first ten feet from the back of the sidewalk or ten feet from the curb, when no sidewalk is present. Temporary Non-Commercial Right of Way Signs shall not interfere with pedestrian circulation along sidewalks, pathways or the levee/pedway; shall not obstruct bicycle circulation along bicycle paths; shall not obstruct the sight distance of drivers of vehicles; and/or, shall not cause unsafe conditions as determined by the city. Signs deemed to create a hazardous condition shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

5. Temporary Non-Commercial Right-of-Way Signs placed in residential zoning districts shall be no larger than four square feet.

6. Temporary Non-Commercial Right-of-Way Signs placed in zoning districts other than residential shall be no larger than eight square feet.

7. Temporary Non-Commercial Right-of-Way Signs shall not be illuminated. 502

8. Temporary Non-Commercial Right-of-Way Signs may be placed ninety days prior to an election and shall be removed no later than ten days after an election.

9. Any Temporary Non-Commercial Right of Way Signs deemed to have damaged public property shall be subject to immediate removal by the city. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.”
Section 5. Amendment to Section 15.12.170 (Exempt Signs) within Chapter 15.12 of Title 15 of the Foster City Municipal Code is amended to add subsection (L) to read as follows:

Temporary noncommercial signs placed on private property may only be allowed with the owner’s consent, and in residential zoning districts shall be no larger than four square feet, and if placed in any other zoning district, no larger than eight square feet.

Any such signs may be placed ninety days prior to an election and shall be removed no later than ten days after the election, and may not be placed on any roof.

Section 6. Amendment to Section 15.12.180 (Temporary Signs) within Chapter

15.12 of Title 15 of the Foster City Municipal Code is amended to repeal subsection (D) in its entirety and replace subsection (D) to read as follows:
“Temporary Non-Commercial Right-of-Way and temporary non-commercial signs which are exempt pursuant to Section 15.12.170 of this chapter;” Section 7. Severability.

If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 8. Environmental Determination.

The Ordinance is not a project within the meaning of Section 15378 of CEQA Guidelines because it has no potential for resulting in either a direct or a reasonably foreseeable indirect physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of having a significant effect on the environment. 503
Section 9. Publication.

This Ordinance shall be published in a newspaper of general circulation in accordance with California Government Code Section 36933, published, and circulated in the City of Foster City, and shall be in full force and effect (30) days after its final passage.

Section 10. Effective Date.

This Ordinance shall take effect and be in force starting on from and after its adoption.

Section 11. Posting.

Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council.

This Ordinance was introduced and read on the 20th day of June, and passed and adopted on the______day of _______, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
504

15.12.010 Purpose, objective and intent.

The purpose of this chapter is to establish standards for signage which help people find what they need without difficulty or confusion and to help preserve and improve the appearance of the city.

Therefore, all signs shall be regulated to assure that they promote both the goals and objectives of the community and the public health, safety and general welfare.

This chapter establishes standards for the erection, display, safety and maintenance of signs which are intended to meet the following objectives:

Public Welfare. The city, as a unique planned community, has greatly avoided the influences of traditional community development where signing proliferated to a point detrimental to the value and quality of the community before being regulated. The opportunity to achieve an environment free from such circumstances exists in the city and therefore shall be pursued wherever possible in order to build a community of the highest value and quality in which all citizens may take pride and enjoyment.

Healthy Economy. An objective of this chapter is to allow businesses to identify themselves so that clients can find them with a minimum of confusion. This is achieved by effective signing which is necessary, concise, well-designed and well-executed. It is recognized that signs are an economical and effective means of communicating information and are thus an important asset to most businesses.

Freedom of Speech for Political Signs. The city recognizes the importance of political signs in the exercise of free speech. The city finds it necessary to regulate the time and manner of placement of certain aspects of political signs for the following reasons:

1. Prohibition of political signs Temporary Non-Commercial Right-of-Way Signs on public street medians, bridges, public utility box or any poles used for public utility, traffic control signs, traffic signals, or street signs is necessary to: prevent visual distractions to motorists which create traffic hazards, prevent unsafe road conditions, and to prevent eyesores from proliferating along public streets.

2. Regulation of the size of political Temporary Non-Commercial Right-of-Way signs is necessary for safety and aesthetic reasons, specifically, that the strong winds that are common in Foster City would remove the signs, creating hazards and accumulation of debris, and extremely large or illuminated signs would create a distraction to motorists.

15.12.020 Definitions.

As used in this chapter, the terms set out below are defined to mean the following:
“Abandoned sign” means a sign which no longer directs, advertises or identifies a legal business establishment, product or activity on the premises where such sign is displayed. “Advertising structure” means a structure erected or used for the purpose of supporting or displaying a message or sign.
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“Affected wall surface area” means the solid wall surface area between the top story row of windows and the roof line running the length of the building elevation (or the subject portion of the building elevation) on which the sign is proposed to be placed or the surface area of any separate element of the building on which the sign is proposed to be placed, provided that the separate element is located at or near the top of the building. “Aggregate total glass surface area” means the product of multiplying the length times the width of the storefront glass surface along a single building elevation with the proviso that window panel separations (mullions, grids, etc.) that are less than six inches wide shall be counted within the aggregate total glass surface area available for signage, and window panel separations or building structural elements separating windows that are greater than six inches shall not be included within the aggregate total glass surface area available for signage. In the case of stores with more than one building elevation with window glass, the aggregate total glass surface area available for the placement of signage shall be calculated based on the dimensions of each individual elevation. Unused amounts of aggregate total glass surface area from one elevation shall not be applied to any other elevation.
“Approving authority” means that person or body (planning director, planning commission or city council) which has authority pursuant to the provisions of this chapter to approve an application for a sign permit.
“Awning” means a shelter supported entirely from the exterior wall of a building and composed of nonrigid materials except for the supporting framework. “Banner” means a sign composed of flexible material either totally or partially secured to a structure and when partially secured is intended to be moved by the wind. “Building face” means the outer surface of a building or portion of a building given to an individual business, including exposed foundation, windows, doors, parapet, fascia and wall area, but not including any overhanging fascia, canopy, marquee, awning, or roof surface. “Building frontage” means the width of the face of a building abutting the public right-of-way or primary pedestrian access.
“Bulletin board” means a board, either in a freestanding kiosk or on a wall, on which temporary bulletins or notices are posted.
“Business frontage (primary)” means the width of the face of a business abutting, or if not abutting, exposed to a public right-of-way. In the case of multiple frontages abutting public rights-of-way, the longest frontage shall be considered the primary business frontage. “Business frontage (secondary)” means the width of the face of a business abutting a secondary street, freeway, parking lot, or pedestrian access.
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“Canopy” means a permanent, roof-like shelter extending from part or all of a building face and constructed of some durable material which may or may not project over a public right-of-way. “Changeable copy sign” means a sign that is designed so that characters or letters can be changed or rearranged without altering the face or the surface of the sign. “Commercial center” means a group of five or more contiguous businesses which utilizes common off-street parking and access and which exhibit a common architectural design. “Commercial uses” means a retail or similar use in a commercial center or on a property zoned C-1 (retail business), C-A (commercial automobile repair and service), C-2/PD (town center commercial/planned development), or CM/PD (commercial mix/planned development district). “Construction sign” means any sign giving the name or names of principal contractors, architects, and lending institutions responsible for construction on the site where the sign is placed, together with other information included thereon. See Section 15.12.180(C) of this chapter.
“Directional sign” means an incidental sign designed to guide or direct pedestrian or vehicular traffic.
“Freestanding or monument sign” means a sign not attached to a building or other structure, but which is attached to the ground and which exhibits sign graphics on one or two faces, which, if two faces shall be the same on both faces.
“Freeway” means State Highway 92 or State Highway 101.
“Identification sign” means a permanent sign which identifies a building, occupant, or activity conducted on the premises.

Illegal Sign. See Section 15.12.210(B) of this chapter. “Illumination (external)” means any light from a source outside a sign and which illuminates the sign by reflection. No directly or transparently exposed light source is included in this definition. “Illumination (internal)” means any light from a source contained within a sign and which is seen translucently through the face of the sign. No directly or transparently exposed light source is included in this definition.
“Industrial center” means a group of industrial buildings which utilizes common off-street parking and access and which exhibits a common architectural design. “Logo” means a symbol, picture, or other graphic representation used by an entity to consistently identify itself.
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“Mural” means a picture or decoration which is painted on, or otherwise applied directly to an external wall.
“Neon” means illumination affected by a light source consisting of a neon or other gas tube which is bent to form letters, symbols or other shapes.

Nonconforming Sign. See Section 15.12.210(A) of this chapter. “Office center” means a group of office buildings which utilizes common off-street parking and access and which exhibits a common architectural design. “Parapet or parapet wall” means that portion of a building wall which rises above the roof. “Pedestrian access (primary)” means the single doorway located and designed to be the major entry to a building.
“Pedestrian access (secondary)” means doorways, other than the primary pedestrian access, for gaining entry to a building.
“Political sign” means a sign associated with a candidate for elected office or ballot measure. “Portable sign” means a sign not permanently affixed to the ground or a structure on the premises it is intended to occupy.
“Projecting sign” means sign attached to a building wall or structure but which protrudes out from the wall or structure at an angle, as opposed to being attached flush against the wall or structure.
“Promotional sales sign” means a sign erected on a temporary basis to promote the sale of new products, new management, new hours of operation, a new service, to promote a special sale, or similar purpose.
“Property frontage” means the linear dimension of a parcel of property abutting a public street.

Public Convenience Sign. See Section 15.12.190 of this chapter.

Real Estate Sign. See Section 15.12.180(B) of this chapter. “School” means a public or private elementary, junior high school or high school. “Setback” means the distance measured to the property line. “Sign” means a visual communications device used to convey a message to the viewer but does not include lighting or paint used to highlight the architectural features of a building which were approved pursuant to a use permit or architectural review application and also does not include 508
such devices placed inside a building which are not defined as window signs pursuant to this section.
“Sign area” means the area of the background surface, and frame if present, on which the sign graphics are displayed. The area of a sign without a background surface, or where a significantly larger building element such as a wall or fascia serves as the background, shall be taken as the smallest geometric figure enclosing the graphics. The area of a freestanding sign shall be taken as the area of only one face even though sign graphics are exhibited on both faces if both faces are identical and not more than twelve inches apart.
“Sign base” means the post(s) or supporting structure between the ground and the background or frame (if present) of a freestanding or monument sign.
“Sign can” means the exterior covering or cabinet of a sign including the frame, face(s), and background.
“Sign copy” means any words, letters, numbers, figures, designs or other symbolic representations incorporated into a sign, but does not include color. “Sign graphics” means all lettering, logos, pictures, symbols, patterns and depictions, including color, on a sign.
“Sign guidelines” means a set of criteria and a format approved by resolution of the planning commission pursuant to Section 15.12.220 of this chapter for all signs to be located in a specific development.
“Sign height of a freestanding sign” means the distance from the average surface grade surrounding the base of the sign to the top of its highest element, including any structural element. Where a sign is placed on a mound, the height of the mound shall be included. “Temporary Non -Commercial Right of Way Sign” means a temporary sign for non-commercial purposes located in the public right of way. “Temporary Non-Commercial Right of Way Signs” shall be exempt from the requirements of a Temporary Sign as identified in section 15.12.180.

Temporary Sign. See Section 15.12.180 of this chapter.
“Typical sign permit” means a sign permit which is not a use permit sign request or a variance sign permit.
“Under-canopy sign” means a sign suspended from an overhead element such as a canopy, marquee or roof.
“Use permit sign request” means an application to increase normally allowed sign area up to fifty percent more than otherwise allowed for such sign, or to allow additional numbers and types of signs, or to allow alternate locations of signs. See Section 15.12.040(B) of this chapter. 509
“Variance sign permit” means a sign permit which allows an increase in the maximum standards set forth in this chapter such as height, size and location of any sign, based on practical difficulties, unnecessary hardships, or results inconsistent with the general intent and purpose of this chapter. See Section 15.12.040(C) of this chapter. “Vehicle display sign” means a sign attached to a motor vehicle which is parked on public or private property with the primary purpose of advertising to the public. “Wall sign” means a sign attached to and flat against a building wall or structure. “Window sign” means all signs in any nonresidential zoning district, visible from outside the building, and placed in any of the following locations (see Section 15.12.170 of this chapter for window signs exempt from sign permit requirements):

1. Affixed to or placed within three feet of a window;

2. Neon signs placed within ten feet of a window (see Section 15.12.160(G) of this chapter regarding prohibition of these neon signs);

3. Neon signs placed ten feet or more from a window (see Section 15.12.200 of this chapter regarding sign permits required for these neon signs). (Ord. 533 § 1 (part), 2006; Ord. 520 § 2 Exh. A (part), 2005; Ord. 517 § 2 Exh. A (A), 2005; Ord. 364 § 2 (part), 1989)

15.12.170 Exempt signs.

Except as otherwise provided in this chapter, the following signs are declared to be exempt from the requirements of sign permit application, review, approval and fees, but must adhere to all other regulations of federal, state and local laws:

A. Traffic signs or pavement markings required by state law, city district regulations, or the city engineer.

B. Signs erected by the city of Foster City, Estero Municipal Improvement District, county of San Mateo, state of California and United States of America.

C. Signs erected by public utility companies with the permission of the planning director which serve the public safety or welfare.

D. Changeable sign copy on changeable copy signs, including, but not limited to, gasoline price signs.

E. Signs placed on the interior of a property not intended to be seen by the general public, such as signs inside buildings which are not window signs.
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F. Signs for sale, rent, or lease signs used to advertise residential property (“real estate signs”), shall not be illuminated, shall be mounted on a post or “A” frame, and shall not exceed four square feet in area and may be used subject to the following restrictions:

1. One such real estate sign shall be allowed on the property for sale, rent or lease at all times.

2. Up to four additional “open house” signs, which may also exhibit directional arrows and instructions, shall be allowed on weekends, holidays and on one weekday per week (multiple listing service tour day) on other private property with the owner’s permission.

3. No more than three such “open house” directional real estate signs (aggregate for on or more sales) shall be located on a single property nor shall more than six such signs located within forty feet of an intersection.

4. Real estate signs shall not be allowed on sidewalks, streets, medians, public rights-of-way, or where they interfere with vehicular sight distance, nor shall they be allowed to be taped, wired, glued, tied or in any way affixed to light poles, street signs, or any public property.

G. Garage/yard sale signs used to advertise such a sale on residential property, shall not be illuminated, shall be mounted on a post or “A” frame, and shall not exceed four square feet in area and may be used subject to the following restrictions:

1. One such garage/yard sale sign shall be allowed on the property where the sale is to take place.

2. Up to four additional signs, which may also exhibit directional arrows and instructions, shall be allowed on weekends and holidays on other private property with the owner’s permission.

3. No more than three such garage/yard sale signs shall be located on a single property nor shall more than six such signs be located within forty feet of an intersection.

4. Garage/yard sale signs shall not be allowed on sidewalks, streets, medians, public rights-of- way, or where they interfere with vehicular sight distance, nor shall they be allowed to be taped, wired, glued, tied or in any way affixed to light poles, street signs, or any public property.

H. Residential street address signs, including name of occupant, or nonresidential street address signs, not exceeding one square foot in area, which may be internally or externally illuminated.

I. Window signs subject to the following restrictions:

1. Window signage shall not be evaluated, regulated or limited as to duration based on whether the signage is intended to be permanently or temporarily placed on storefront windows.

2. Window signage shall not be subject to time limitations, including grand openings, special events, promotional events or sales. (See Section 15.12.180(E) and (F) of this chapter for other 511
types of temporary signs that are subject to time restrictions, such as grand opening or promotional sales banners that are not window signs.)

3. The total amount of all window signage (including illuminated and non-illuminated window signage) allowed shall be limited to forty percent of the aggregate total glass surface area of the store, as defined in Section 15.12.020 of this chapter.

4. All window signage placed on or within three feet of the aggregate total glass surface area of the store shall be of professional quality with respect to installation, materials, and design.

5. All lighting intended to illuminate window signage (if any) shall be approved by the city prior to installation.

6. The city shall not regulate the content/message, materials (except directly exposed neon tubing), logo, font or color of the sign background or any portion of the illuminated window signage.

7. The message on exempt non-illuminated changeable copy window signage may be changed as frequently as the owner desires.

8. Any combination of illuminated, poster, vinyl or painted letters or other signage may be included within the total amount of window signage allowed on or within three feet of the aggregate total glass surface area of the store.

9. All window signage shall be maintained in a clean and safe manner, shall be fully operational and wholly intact at all times (no missing, broken, torn, ripped, stained, dirty, or unlit areas, parts, corners, or letters) and shall be immediately repaired or replaced as often as necessary.

10. Non-illuminated signs or graphics shall not require review by or a permit from the city.

11. Individual window letters, designs and logos that are applied by paint, vinyl or other approved materials directly to the surface of the window are subject to the following restrictions:
a. Window signs may be placed only on first-floor storefront windows except for second-floor windows visible only from parking lots and not visible from public streets. b. Allowable materials for window letters include paint, vinyl, or other similar materials. c. Individual window letters shall not be greater than six inches in height. d. Window letters or other designs that are applied by paint, vinyl, or other approved materials directly to the surface of the window shall be white only but may be of any font style. e. Window letters, designs, and logos applied directly to the surface of the window shall be surrounded with a minimum border (untreated glass) of two inches on all sides. 512
J. Political signs Temporary Non-Commercial Right-of-Way Signs which meet the following criteria:

1. Political signs Temporary Non-Commercial Right-of-Way Signs shall not be placed in any public street median, or on any bridge, public utility box, or any pole used for public utility, traffic control signs, traffic signals, or street signs. These signs are deemed to create a hazardous condition and shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

2. Political signs Temporary Non-Commercial Right-of-Way Signs shall not be placed in or along public rights-of-way such that they are considered by the city to be a sight distance problem for the drivers of vehicles, or which interfere or distract from the traffic control devices in place, or which interfere with safe bicycle or pedestrian circulation. These signs are deemed to create a hazardous condition and shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

3. Temporary Non-Commercial Right- of-Way Signs shall not be placed in any public parks and be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

4. 3. With the exception of public parks, political signs With the exception of public parks, Temporary Non-Commercial Right-of-Way Signs may be placed on public property within the first ten feet from the backback of the sidewalk or ten feet from the curb, when no sidewalk is present of curb adjacent to a public street. Temporary Non-Commercial Right- of- Way Signs shall if they do not interferenot interfere with pedestrian circulation along sidewalks, pathways or the levee/pedway; doshall not obstruct bicycle circulation along bicycle paths; doshall not obstruct the sight distance of drivers of vehicles; and/or, doshall not cause unsafe conditions as determined by the city. Signs deemed to create a hazardous condition shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

54. Political signs Temporary Non-Commercial Right-of-Way Signs placed in residential zoning districts shall be no larger than four square feet. Placement of political signs on roofs is prohibited.
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65. Political signs Temporary Non-Commercial Right-of-Way Signs placed in zoning districts other than residential shall be no larger than eight square feet.

6. Political signs placed on private property must have the express consent of the property owner.

77. Political signsTemporary Non-Commercial Right-of-Way Signs shall not be illuminated.

8. Political signsTemporary Non-Commercial Right-of-Way Signs may be placed ninety days prior to an election and shall be removed no later than ten days after the election.

9. Any political signs placed in median strips along Foster City Boulevard, Shell Boulevard, Beach Park Boulevard, East Hillsdale Boulevard, Edgewater Boulevard, Metro Center Boulevard, Chess Drive, Vintage Park Drive, Bounty Drive, Polynesia Drive or any other public streets shall be subject to immediate removal by a representative of the city authorized to do so by the city manager. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.
109. Any political sign Temporary Non-Commercial Right-of-Way Signs deemed to have damaged public property shall be subject to immediate removal by the city. If information is provided to the city or included on the sign indicating whom to contact regarding the sign, the city shall provide notice to the contact following removal of the sign.

K. Copy changes on existing legally established signs using the same materials, colors, and typeface size and style.

L. Temporary noncommercial signs placed on private property may only be allowed with the owner’s consent, and in residential zoning districts shall be no larger than four square feet, and if placed in any other zoning district, no larger than eight square feet. Any such signs may be placed ninety days prior to an election and shall be removed no later than ten days after the election, and may not be placed on any roof.

15.12.180 Temporary signs.

Temporary signs shall be allowed for a specific duration as stipulated in the provisions of this section or as set by the approving authority in approving the sign permit. Unless specifically exempted from sign permit by Section 15.12.170 of this chapter, all temporary signs not otherwise exempt shall require approval by the community development director and a permit.

Nothing in this section shall prohibit the community development director from approving a prototypical real estate sign to be used by a real estate company in several locations. The prototypical sign approval shall include height, text, square footage, colors, materials, and criteria for location such as setbacks from streets and corners. Notwithstanding approval of a prototypical real estate sign, the specific location of each such sign shall be approved by the community development director prior to installation.
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A. Temporary window signs which are exempt pursuant to Section 15.12.170 of this chapter; B. Real estate signs as indicated in Table 1 and as exempt pursuant to Section 15.12.170 of this chapter;
C. Construction signs as indicated in Table 1;
D. Political signsTemporary Non-Commercial Right-of-Way Signs and temporary non- commercial signs which are exempt pursuant to Section 15.12.170 of this chapter; E. Grand Opening Signs. One banner, not illuminated and not to exceed fifty square feet in area for retail commercial uses or twenty-five square feet in area for office or industrial uses, shall be allowed to identify a use, its nature and the opening date. Such banner shall not be displayed longer than thirty days total which shall be before, during and after the opening, or for a period to be approved by the community development director. The use of such signs is subject to the following limitations:

1. No more than one sign shall be permitted per activity or business.

2. The sign shall be temporary, designed either as a wall sign or a window sign. The sign can be in the form of a banner.

3. The sign shall be located below the roof eaves, and at no time shall any portion of the sign be higher than twenty feet above ground level.

4. The sign shall not exceed the length of the store/business frontage, nor shall it block ingress/egress to any of the business entrances.

5. Grand opening signs shall be placed on the primary business frontage of the commercial or industrial business which is the subject of the sign.

6. The community development director may require special design criteria for grand opening signs that he/she determines require special treatment beyond what is contained in subsections (E)(1) through (5) of this section.

7. Signs shall be kept clean and in good repair at all times that they are in use. 515
DATE: June 20, 2022

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

VIA: Edmund Suen, Interim City/District Manager

FROM: Benjamin Stock, City Attorney

SUBJECT: APPOINTMENT OF STEFAN CHATWIN AS CITY/DISTRICT

MANAGER AND CONSIDERATION OF AMENDED PAY PLAN
EFFECTIVE JUNE 21, 2022

RECOMMENDATION
It is recommended that City Council/EMID Board of Directors (hereinafter referred to as "City Council") adopt the attached resolutions appointing Stefan Chatwin (hereinafter referred to as Chatwin) to the position of City/District Manager effective June 21, 2022, and by approval of the attached At-Will Employment Agreement, establish his initial compensation and benefits, and authorize the Mayor/President to execute the Agreement. It is further recommended that the City Council adopt the attached resolutions amending the City of Foster City/Estero Municipal Improvement District (hereinafter referred to as "City/District") Pay Plan.

EXECUTIVE SUMMARY
The City Council is asked to review and approve the Employment Agreement attached hereto, thereby appointing Chatwin as the City/District Manager effective June 21, 2022 pursuant to the terms and conditions found in the Agreement as discussed below. Staff has also prepared an updated City/District Pay Plan to include the salary rate for Chatwin, per the 516
Employment Agreement, to be effective June 21, 2022.

BACKGROUND/ANALYSIS

Upon the vacancy created by the previous City Manager’s separation, the City posted the open position for City Manager on the City's website on September 8, 2021 to initiate the recruitment for a replacement City Manager.

At the September 20, 2021, Council meeting, the City Council directed staff to issue a Request for Proposals (RPF) for the City/District Manager recruitment. Staff released the RFP on September 24, 2021, with a deadline for receipt of proposals of October 5, 2021. At the October 5, 2021, deadline, staff received three proposals for consideration. Interviews of the three firms were held on October 25, 2022, and the City Council directed staff to engage with Fred Wilson of Ralph Andersen & Associates to conduct the recruitment. The City Council approved the professional services agreement with Ralph Andersen & Associates on November 15, 2021.

Mr. Wilson worked with the City Council and staff to create the candidate profile and recruitment material. The initial recruitment was launched on December 8, 2021, and after a series of interviews with identified City Manager candidates during the months of February and March 2022, a second recruitment was launched on April 4, 2022.

After the April search was conducted, a new slate of City Manager candidates were identified for City Council consideration. On May 18, 2022, the City Council met with City Manager candidates in closed session. Further interviews were conducted and, at the conclusion of the interview process, the City Council created an ad-hoc subcommittee consisting of the Mayor and Vice Mayor to work with the recruiter and the City Attorney to negotiate a contract with the preferred candidate. After further discussions with the ad- hoc subcommittee and Mr. Chatwin, his proposed employment agreement is now presented for review, as required by Government Code Section 53262, for approval by the City Council/EMID Board.

Agreement Terms
The proposed Agreement contains the terms for Chatwin’s employment as the City/District Manager. If approved, he will commence employment on June 21, 2022 to June 21, 2027, unless terminated by Chatwin or the City/District. (Attachment 3 – Paragraph 3, Term of Agreement) 517

Chatwin’s compensation will initially be set at an annual rate of $274,000. He will be an at-will exempt employee. He will be entitled to be considered for periodic salary adjustments as determined by the City Council during Chatwin’s performance evaluations. (Attachment 3 – Paragraph 7, Salary) Pursuant to Paragraph 8, Vacation, Sick Leave, and Other Employment Benefits, Chatwin shall receive all benefits provided to Department Heads pursuant to the approved Compensation and Benefits Plan for the City of Foster City and Estero Municipal Improvement District Management Employees. In addition, on the effective date of the Agreement, Chatwin will be credited with 80 hours of vacation leave, 40 hours of sick leave, and 16 years of service for the purposes of accrual of vacation, administrative and sick leave. Chatwin may participate in a voluntary 401(a) plan and will also receive an auto allowance of $500/month.

The City/District will provide Chatwin with a computer and cell phone to be used for business purposes owned by the City/District.

The City Council will, on a yearly basis during its budget process, consider whether or not to pay for professional dues, subscriptions, travel, and subsistence expenses in professional organizations. (Attachment 3 – Paragraph 9, Dues, Subscriptions, and Professional Development) The City/District will provide Chatwin with Housing Benefits of either a housing allowance in the amount of $2,500 per month or a housing loan of up to $2,500,000 providing the loan does not exceed ninety percent (90%) of the property purchase price. (Attachment 3 – Paragraph 10, Housing Benefits) At both 6 and 12 months after the effective date of the Agreement, the City Council/EMID Board of Directors will evaluate Chatwin’s performance. Thereafter, his performance will be evaluated on an annual basis. (Attachment 3 – Paragraph 12, Performance Evaluation)

As noted above, the Agreement will continue until June 21, 2027. Chatwin may resign or retire at any time and agrees to provide the City/District at least 60 calendar days’ notice. No severance benefits will be paid if he terminates the Agreement and resigns.

The Agreement may also be terminated by the City Council at any time, either for cause or without cause. If Chatwin is terminated without cause, upon 518
release of all claims against the City/District, he is entitled to a severance payment of the cash equivalent of 6 months base salary and health benefits, minus any required withholdings. (Attachment 3 – Paragraph 11, Severance) Pay Plan
As noted above, the salary for Chatwin will be $274,000 annually, or $22,822.33 per month. Staff has prepared an updated pay plan to reflect the City Manager new pay rate, to be effective on June 21, 2022.

It is recommended that the City Council adopt the attached resolutions appointing Chatwin and authorizing the Mayor/President to execute the Agreement. It is further recommended that the City Council adopt the attached resolutions approving the new City Manager’s pay rate in the City/District’s pay plan.

FISCAL IMPACT
There is no additional fiscal impact for FY 2021-2022 due to the salary savings from the open City/District Manager position.

CITY COUNCIL VISION, MISSION AND VALUE/PRIORITY AREA
These actions support "Staff Empowerment and Operational Excellence" Value/Priority Area, allowing the organization to focus on key outcomes of attracting and retaining high-caliber talent to support service delivery. By meeting these key outcomes, the City will continue to be able to proactively provide exceptional service to our community.

Attachments:
Attachment 1 – City Resolution – Employment Agreement
Attachment 2 – EMID Resolution – Employment Agreement
Attachment 3 – Employment Agreement
Attachment 4 – City Resolution – Pay Plan
Attachment 5 – EMID Resolution – Pay Plan
Attachment 6 – Pay Plan effective June 21, 2022
519
RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

ESTABLISHING THE SALARY FOR THE CITY MANAGER AND AUTHORIZING THE

MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT WITH STEFAN CHATWIN FOR EMPLOYMENT AS THE CITY MANAGER EFFECTIVE JUNE 21, 2022

CITY OF FOSTER CITY
WHEREAS, the previous City Manager separated from employment with the City of Foster City on August 25, 2021; and
WHEREAS, the City Council engaged an outside recruiting firm to conduct a nationwide search for City Manager candidates; and
WHEREAS, as a result of that search, the City Council interviewed a number of City Manager candidates; and
WHEREAS, at the conclusion of the interview process, the City Council extended an offer of employment to Stefan Chatwin (hereinafter referred to as Chatwin); and WHEREAS, Chatwin has indicated he wishes to serve as the City Manager effective June 21, 2022; and
WHEREAS, the City Council desires to execute an Employment Agreement (hereinafter “Agreement”) with Chatwin establishing his initial compensation and benefits and setting forth the expectations of Chatwin and the City Council concerning his employment; and
WHEREAS, public review of the proposed Agreement is required by Government Code Section 53262 prior to City Council action; and
WHEREAS, the City Council has considered the Agreement at a regular City Council meeting and provided for public comments.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby approve the proposed Agreement and appoints Stefan Chatwin to serve as the City Manager for Foster City effective June 21, 2022 pursuant to the terms and conditions enumerated in the Agreement with Stefan Chatwin, and does hereby authorize the Mayor to execute said Agreement.
520
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
521
RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING THE SALARY FOR THE DISTRICT

MANAGER AND AUTHORIZING THE PRESIDENT TO EXECUTE AN EMPLOYMENT

AGREEMENT WITH STEFAN CHATWIN FOR EMPLOYMENT AS THE DISTRICT MANAGER EFFECTIVE JUNE 21, 2022

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the previous District Manager separated from employment with the Estero Municipal Improvement District on August 25, 2021; and WHEREAS, the Board of Directors engaged an outside recruiting firm to conduct a nationwide search for District Manager candidates; and WHEREAS, as a result of that search, the Board of Directors interviewed a number of District Manager candidates; and
WHEREAS, at the conclusion of the interview process, the Board of Directors extended an offer of employment to Stefan Chatwin (hereinafter referred to as Chatwin); and
WHEREAS, Chatwin has indicated he wishes to serve as the District Manager effective June 21, 2022; and
WHEREAS, the Board of Directors desires to execute an Employment Agreement (hereinafter “Agreement”) with Chatwin establishing his initial compensation and benefits and setting forth the expectations of Chatwin and the Board of Directors concerning his employment; and
WHEREAS, public review of the proposed Agreement is required by Government Code Section 53262 prior to Board of Directors action; and WHEREAS, the Board of Directors has considered the Agreement at a regular Board of Directors meeting and provided for public comments.

NOW THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby approve the proposed Agreement and appoints Stefan Chatwin to serve as the District Manager for Estero Municipal Improvement District effective June 21, 2022 pursuant to the terms and conditions enumerated in the Agreement with Stefan Chatwin, and does hereby authorize the Board President to execute said Agreement.
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PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 20th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RICHA AWASTHI, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY
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1 AT-WILL EMPLOYMENT AGREEMENT
OF

Stefan Chatwin

This agreement (“Agreement”) is between the CITY OF FOSTER CITY, a municipal corporation, and the ESTERO MUNICIPAL IMPROVEMENT DISTRICT, a district, organized under the laws of the State of California (collectively “City/District”) , and STEFAN CHATWIN ("Employee"). City/District and Employee shall be collectively referred to as “Parties” or individually referred to as “Party”, “Employee” or “City/District”.

RECITALS

WHEREAS, the City/Dist rict has completed a recruitment process and has determined that the City/District desires to offer the position of City/District Manager to Employee; and

WHEREAS, Employee has indicated he desires to serve in the capacity of City/District Manager; and

WHEREAS, In accordance with the terms of the Agreement, City/District and Employee have agreed to memorialize their intent and the terms of employment by this Agreement.

NOW THEREFORE, it is hereby agreed by City/District and Employee as follows:

1. Effective Date

The effective date of this Agreement is June 21, 2022.

2. Appointment as City/District Manager and Start Date

The City/District agrees to employ Employee as City/District Manager for the City/District, subject to the terms, conditions and provisions of this Agreement. Employee accepts such employment. Employee shall be “at will” and serve at the pleasure of the City Council/District Board. Employee shall start performance of his duties as City/District Manager on June 21, 2022.

3. Term of Agreement

The term of this Agreement shall (“Term”) be for a period of five (5) years, commencing on June 21, 2022 to June 21, 2027, unless terminated earlier by either Party pursuant to Section 6 below. Employee is an at will employee who may be terminated at any time, with or without cause, and shall serve at the pleasure of the City/District Council. Employee may resign at any time for any reason by providing notice in accordance with Section 6 to City/District Council. If either Party intends not to renew or extend the Term at its expiration, the Party shall give notice to the other Party at least 180 days prior to the expiration of the Term.

4. Duties and Responsibilities

a. Employee will perform the functions and duties specified in the laws of the United States and the State of California and in Foster City Municipal Code, Title 2, Chapter 2.04, and Estero Municipal District Code, Title 2, Chapter 2.12, ordinances and resolutions of City/District, 524
2 and to perform other legally permissible and proper duties and functions of the City/District Council may, from time to time, assign.

b. Employee shall perform his duties to the best of his ability in accordance with the highest professional and ethical standards of the profession, comply with all general rules and regulations established by the City/District, and obey all State and Federal laws.

c. Employee agrees to devote his productive time, ability and attention to the City/District's business during the term of this Agreement. Employee shall not hold secondary employment, and shall be employed exclusively by the City/District . The Cit y/District and Employee recognize that Employee is expected to devote necessary time outside normal office hours to perform business of the City/District. Since Employee's position is "exempt" under the Fair Labor Standards Act, Employee shall not receive overtime or extra compensation for work performed outside normal business hours.

d. Employee shall not engage in any activity, which is or may become a conflict of interest, prohibited by contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, the Employee must complete disclosure forms as required by law.

5. Work Hours

The Employee is an exempt employee expected to work the hours necessary to fulfill the obligations of the Employee position. The City Council/ District Board and Employee share the belief that his presence at City Hall during normal business hours is important to demonstrate leadership and to promote employee morale and growth. With these goals in mind, as the head of the City/District organization, the Employee is expected to be available at all times and is generally expected to be present in the workplace during normal business hours on most days.

In recognition of the position’s demands, the City Council/District Board wishes to provide the Employee flexibility to determine his work schedule in fulfilling his work obligations. The Employee may therefore set his own regular work schedule provided that it averages at least 8 hours per regular work day (including leave taken) over a two week period.

6. Resignation, Termination and Severance Pay

a. Resignation: Employee may resign or retire at any time from his employment with the City/District, and agrees to provide the City/District at least sixty (60) calendar days advance written notice of the effective date of his resignation or retirement. Failure of Employee to give the required written notice of resignation will result in a pro-rata reduction in benefits normally payable to resigning City/District employees, such as, but not limited to, accrued vacation payment, and the like. Voluntary resignation by Employee will result in a loss of all Severance Pay from City/District.

b. Termination by City/District: City/District may terminate Employee, with or without cause, at any time.

i. Termination without Cause: City/District may terminate Employee without cause by providing him with a written notice of termination. If City/District terminates employee without cause, City/District shall provide Employee sixty (60) calendar days written notice of such termination, unless the parties mutually agree 525
3 otherwise. If the City/District, at the request of a majority of the City Council/District Board, requests Employee’s resignation without cause, then Employee shall be dee med terminated without cause. If the Employee is terminated without cause, then the Employee is entitled to receive severance as detailed in Section Eleven ( 11) below . However, consideration of termination without cause of Employee by the City Council/District Board shall not occur within ninety (90) calendar days before or following a general or special election at which a Councilmember is elected.

ii. Termination for Cause: City/District may terminate Employee for cause by providing him with a written notice of termination. Such termination may be effective immediately. The following are sufficient basis for termination for cause:

A. Employee engages in illegal activities;
B. Gross malfeasance;
C. Dereliction of duties;
D. Absence from employment without a good cause;
E. Failure to perform duties and responsibilities under this Agreement, as defined in the City/District’s Code, or as specified in the City/District Manager’s job description.

F. Resume fraud or other acts of material dishonesty;
G. Violation of the City/District ’s Rules, including but not limited to, the City/District’s rule against harassment, discrimination, and retaliation; H. Use or possession of illegal drugs;
I. Engaging conduct tending to bring embarrassment or disrepute to the City/District;
J. Conviction of any felony or any criminal offense involving moral turpitude; or
K. An abuse of his office or position as that term is defined in Government Code Section 53243.4.

c. Termination by Reduction of Salary or Benefits: If City/District at any time during this Agreement reduces the salary of City/District Manager in a greater percentage than an applicable across -the-board reduction for other “at will” employees , as defined in the City/District’s Compensation and Benefits Plan for Management E mployees (“Plan”), the Employee may, at his option, be deemed to be “termi nated” without cause at the date of such reduction.

d. Affirmation of “At-Will” status: The parties recognize and affirm that: 1) Employee is an "at-will" employee whose employment may be terminated by the City Council/District Board at any time; and 2) t here is no express or implied promise made to Employee for any form of continued employment as City/District Manager or any ot her position of employment with City/District. This Agreement is the sole and exclusive basis for an employment relationship between Employee and the City/District. Nothing in this Agreement shall be construed to create a property interest for Employee in the position of City/District Manager.

7. Salary

Effective June 21, 2022, City/District agrees to pay Employee $2 74,000 in base salary per year ($22,833.33 per month) during the term of this Agreement for his services. All salary payments to Employee shall be payable in installments at the same time as other employees of 526
4 the City/District are paid and subject to the customary withholding. Increases in salary will be determined by the City Council/District Board as part of Employee’s performance evaluations , and in no case shall Employee’s annual salary increase exceed that of other across the board increases for Management Employees.

8. Vacation, Sick Leave, and Other Employment Benefits

Unless provided otherwise in this Agreement, Employee shall receive all benefits provided to Department Heads pursuant to the approved Compensation and Benefits Plan for the City of Foster City and Estero Municipal Improvement District Management employees . In addition, on the Effective Date of this Agreement:

a. Employee will be credited with 80 hours of vacation leave. Employee shall be eligible to use these 80 hours of leave effective June 21, 2022. b. Employee will be credited with 40 hours of sick leave. c. Employee will be credited with 16 years of service for the purposes of accrual of vacation leave. Vacation leave earned under this provision will not be eligible for use until completion of employee’s initial six months of employment. d. Employee may particip ate in a voluntary 401(a) plan. Should Employee elect to contribute a minimum 1% of base salary to his 401(a) plan, the City/District agrees to make a contribution equaling 4% of Employee’s annual base salary into Employee’s account. The maximum voluntary contribution to Employee’s account shall be that amount established by law. Such contributions will not be deemed to increase Employee’s base salary for any purpose.
e. City/District shall provide an auto allowance of $500/month to compensate Employee for the use of his personal vehicle on official City/District business , including all business travel within 100 miles of City Hall . The car allowance shall be subject to withholdings, to the extent required by law. Employee shall maintain a current and valid California Driver’s License, insurance coverage, registration and any other legal requirements to operate a personal motor vehicle in the State of California. f. City/District will provide Employee with a computer and smartphone to be used in the manner and subject to the procedures generally applicable to other executive employees, including applicable computer use policies.

9. Dues, Subscriptions, and Professional Development

a. The City/District agrees that on a yearly basis during its budget process to consider whether to pay for professional dues and subscriptions of Employee for national, regional, state, and local associations and organizations.

b. The City/District agrees that on a yearly basis during its budget process to consider whether to pay for travel and subsistence expenses of Employee for professional and official travel, meeting, and other occasions to continue the professional development of Employee, and to pursue necessary official functions for the City/District, including, but not limited to the ICMA Annual Conference and such other national, regional, state and local governmental groups and committees (including community and civic organizations) thereof which E mployee serves as a member, and for travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for his professional development and for the good of the City/District.

Employee understands and agrees these pro fessional development expenses are subject to budget constraints and that the City Council/District Board retains discretion 527
5 in determining whether to fund any of the above-referenced expenses.