CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF FEBRUARY 27, 2023
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The duly called and noticed special meeting of the City Council of the City of Foster City (City), sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID) of February 27, 2023 was called to order at 6:30 p.m. by Mayor/President Jon Froomin.
The meeting was held as a hybrid meeting.
ROLL CALL
The Communications Director/City Clerk called the roll:
PRESENT: Councilmembers/ex officio Directors Sam Hindi, Stacy Jimenez, Art Kiesel, Patrick Sullivan, and Mayor/President Jon Froomin.
ABSENT: None.
STAFF PRESENT: Stefan Chatwin, City/District Manager; Marlene Subhashini, Assistant City Manager; Denise Bazzano, Assistant City Attorney; Edmund Suen, Finance Director; Sofia Mangalam, Community Development Director; Waqas Hassan, Assistant Finance Director; Tracy Avelar, Police Chief; Martin Ticas, Police Captain; Ray Towne, Acting Public Works Director; Rob Lasky, IT Manager; Julie Paping, Administrative Services Director; and Priscilla Schaus, Communications Director/City Clerk/District Secretary.
STUDY SESSION
Mayor/President Froomin recessed the meeting into Study Session. 2ND QUARTER FY 2022-2023. FINANCIAL UPDATE. MINUTE ORDER NO. 1904.
Finance Director Suen presented the staff report.
Discussion ensued.
Motion by Vice Mayor/Vice President Sullivan, seconded by Councilmember/Director Jimenez, and carried unanimously, 5-0-0, to adopt Minute Order No. 1904, to receive and accept the 2nd Quarter FY 2022-2023 Financial Update report.
PREPARATION OF THE FY 2023-2024 ANNUAL BUDGET AND FIVE-YEAR FINANCIAL PLAN. MINUTE ORDER NO. 1905.
Finance Director Suen and City/District Manager Chatwin presented the staff report.
Discussion ensued.
Motion by Councilmember/Director Hindi, seconded by Vice Mayor/Vice President Sullivan and carried, 5-0-0, confirming the following assumptions and policy direction in the development of the FY 2023-24 annual budget and five-year financial plan:
1. Assess the current level of staffing to meet City Council’s strategic directives, maintain and explore further investment in level of services to the community, provide a detailed line item budget outlining associated budgetary cost impacts as they relate to the maintenance of high service levels to the community to be submitted for City Council review Budget Study Session on May 8, 2023;
2. Review additional revenue avenues and review fee studies, including sidewalk repair fees;
3. Include a 2% wage increase placeholder pending the results of the ongoing classification and compensation studies and labor negotiations of the City's employee groups;
4. Provide the long-term capital improvement project (CIP) funding analysis to the City Council at its March 27, 2023 Budget Study Session using the current “pay as you go” funding model;
5. Present the internal service fund analysis at the March 27, 2023 Budget Study Session. Evaluate the self-insurance method. Maintain the current funding strategy employing a “pay as you go” philosophy for the equipment related replacement funds (vehicle, equipment, information technology, and building) and explore if the funding should be more than 85% for vehicles for a period of time, considering the cost of electric vehicles. Maintain internal service funds for both the Longevity Recognition and Public Employees' Medical and Hospital Care Act (PEMHCA) retiree medical funds on a cash benefit basis and provide information on Section 115 irrevocable trusts at an upcoming City Council meeting;
6. Maintain a minimum General Fund reserve of 33-1/3 to 50% of annual operating expenditures and maintain a $2 million reserve each for the City, Water Enterprise, and Wastewater Enterprise CIP funds and maintain a minimum Water Enterprise Fund and Wastewater Enterprise Fund reserve of 25% of annual operating expenditures; and
7. Consider a general framework for non-profit funding of 60% funding for basic services, 25% for community enrichment, 15% for community health, with the assignment of funds being determined by City Council, to be confirmed at an upcoming City Council meeting.
Meeting recessed into study session at 6:31 p.m. and reconvened at 8:43 p.m.
ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Froomin adjourned the meeting. Meeting adjourned at 8:43 p.m.