Foster City City Council
June 5, 2023

6.14 Attachment 3 - City-District Pay Plan for FY 2022-2023, Effective June 1, 2023

168

Exhibit ACity of Foster City / Estero Municipal Improvement District FY 2022-2023 Pay Plan
Effective June 1, 2023
Hourly
Position Step 1 Step 2 Step 3 Step 4 Step 5
Other Management - Non-Exempt
Deputy City Clerk 42.6844$ 44.8186$ 47.0595$ 49.4125$ 51.8831$ Police Records Supervisor 42.3050$ 44.4202$ 46.6412$ 48.9733$ 51.4220$ Housing Coordinator 49.6515$ 52.1341$ 54.7408$ 57.4778$ 60.3517$ Human Resources Technician 35.7448$ 37.5320$ 39.4086$ 41.3790$ 43.4479$ AFSCME - Maintenance Unit
Public Works Lead Maintenance Worker 40.1053$ 42.1106$ 44.2161$ 46.4269$ 48.7482$ Building Lead Maintenance Worker 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Parks Lead Maintenance Worker 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Irrigation Technician 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Mechanic I 38.9202$ 40.8662$ 42.9095$ 45.0550$ 47.3077$ Building Maintenance Worker II 37.0696$ 38.9231$ 40.8693$ 42.9128$ 45.0584$ Public Works Maintenance Worker II 36.3767$ 38.1955$ 40.1053$ 42.1106$ 44.2161$ Parks Maintenance Worker II 35.7130$ 37.4987$ 39.3736$ 41.3423$ 43.4094$ Equipment Maintenance Worker 35.3018$ 37.0669$ 38.9202$ 40.8662$ 42.9095$ Building Maintenance Worker I 33.6232$ 35.3044$ 37.0696$ 38.9231$ 40.8693$ Public Works Maintenance Worker I 32.9948$ 34.6445$ 36.3767$ 38.1955$ 40.1053$ Parks Maintenance Worker I 32.3928$ 34.0124$ 35.7130$ 37.4987$ 39.3736$ Public Works Maintenance Worker 29.9272$ 31.4236$
Parks Maintenance Worker 29.3812$ 30.8503$
AFSCME - General Unit
Plans Examiner 57.4858$ 60.3601$ 63.3781$ 66.5470$ 69.8744$ Sr. Bldg Inspector 52.1413$ 54.7484$ 57.4858$ 60.3601$ 63.3781$ Building Inspector 47.2937$ 49.6584$ 52.1413$ 54.7484$ 57.4858$ Sr. Engineering Technician 41.9548$ 44.0525$ 46.2551$ 48.5679$ 50.9963$ Recreation Coordinator II 41.4501$ 43.5226$ 45.6987$ 47.9836$ 50.3828$ Social Media / Communication Assistant 39.4086$ 41.3790$ 43.4479$ 45.6203$ 47.9013$ Administrative Assistant II 38.4133$ 40.3340$ 42.3507$ 44.4682$ 46.6916$ Recreation Coordinator I 37.5965$ 39.4763$ 41.4501$ 43.5226$ 45.6987$ Code Enforcement Officer II 37.5319$ 39.4085$ 41.3789$ 43.4478$ 45.6202$ Building Permit Technician II 36.5940$ 38.4237$ 40.3449$ 42.3621$ 44.4802$ Senior Accounting Specialist 35.3789$ 37.1478$ 39.0052$ 40.9555$ 43.0033$ Administrative Assistant I 34.8420$ 36.5841$ 38.4133$ 40.3340$ 42.3507$ Sr. Comm. Services Officer 34.0427$ 35.7448$ 37.5320$ 39.4086$ 41.3790$ Code Enforcement Officer I 34.0427$ 35.7448$ 37.5320$ 39.4086$ 41.3790$ Accounting Specialist 33.6942$ 35.3789$ 37.1478$ 39.0052$ 40.9555$ Building Services Coordinator 33.6232$ 35.3044$ 37.0696$ 38.9231$ 40.8693$ Police Records Specialist 33.1918$ 34.8514$ 36.5940$ 38.4237$ 40.3449$ Building Permit Technician I 33.1918$ 34.8514$ 36.5940$ 38.4237$ 40.3449$ Office Assistant II 30.7981$ 32.3380$ 33.9549$ 35.6526$ 37.4352$ Office Assistant I 27.9348$ 29.3315$
FCPOA
Police Sergeant 65.4277$ 68.6991$ 72.1341$ 75.7408$ 79.5278$ Police Corporal 59.7810$ 62.7701$ 65.9086$ 69.2040$ 72.6642$ Police Dispatch Supervisor 54.9079$ 57.6533$ 60.5360$ 63.5628$ 66.7409$ Police Officer 54.0295$ 56.7310$ 59.5675$ 62.5459$ 65.6732$ Lead Police Dispatcher 50.2962$ 52.8110$ 55.4516$ 58.2242$ 61.1354$ Police Officer Recruit 49.0063$ 51.4566$
Police/Fire Dispatcher 45.6201$ 47.9011$ 50.2962$ 52.8110$ 55.4516$ Hourly / Part-Time / Seasonal
Building Services Coordinator Assistant 18.94$ 19.60$ 20.29$ 21.00$ 21.74$ Recreation Leader III 18.94$ 19.60$ 20.29$ 21.00$ 21.74$ Recreation Leader II 17.68$ 18.30$ 18.93$ 19.60$ 20.29$ Building Serv. Assistant 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Clerical Assistant 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Recreation Leader I 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Department Intern 16.50$ 30.00$
Videographer 20.00$ 30.00$
Hourly

6.14 Attachment 3 - City-District Pay Plan for FY 2022-2023, Effective June 1, 2023

169

Exhibit ACity of Foster City / Estero Municipal Improvement District FY 2023-2024 Pay Plan
Effective July 1, 2023
Hourly
Position Step 1 Step 2 Step 3 Step 4 Step 5
Monthly
Executive Management
City Manager 22,833.34$
Assistant City Manager 17,139.65$ 17,996.63$ 18,896.45$ 19,841.28$ 20,833.33$ Chief of Police 16,770.97$ 17,609.52$ 18,490.00$ 19,414.51$ 20,385.23$ Community Development Director 15,131.74$ 15,888.32$ 16,682.74$ 17,516.88$ 18,392.71$ Director of Public Works 15,131.74$ 15,888.32$ 16,682.74$ 17,516.88$ 18,392.71$ Communications Director / City Clerk 14,708.29$ 15,443.71$ 16,215.89$ 17,026.69$ 17,878.02$ Deputy City Manager 14,708.29$ 15,443.71$ 16,215.89$ 17,026.69$ 17,878.02$ Finance Director 14,708.29$ 15,443.71$ 16,215.89$ 17,026.69$ 17,878.02$ Administrative Services Director 14,708.29$ 15,443.71$ 16,215.89$ 17,026.69$ 17,878.02$ Parks & Recreation Director 14,708.29$ 15,443.71$ 16,215.89$ 17,026.69$ 17,878.02$ Other Management - Exempt
Police Captain 14,467.80$ 15,191.19$ 15,950.76$ 16,748.30$ 17,585.71$ Police Lieutenant 12,497.82$ 13,122.70$ 13,778.84$ 14,467.79$ 15,191.18$ Assistant Finance Director 12,837.60$ 13,479.49$ 14,153.46$ 14,861.13$ 15,604.19$ Economic Development Manager 11,432.15$ 12,003.75$ 12,603.93$ 13,234.12$ 13,895.82$ Information Technology Manager 11,432.15$ 12,003.75$ 12,603.93$ 13,234.12$ 13,895.82$ Human Resources Manager 11,432.15$ 12,003.75$ 12,603.93$ 13,234.12$ 13,895.82$ Chief Building Official 11,267.12$ 11,830.47$ 12,421.99$ 13,043.09$ 13,695.24$ Planning Manager 11,267.12$ 11,830.47$ 12,421.99$ 13,043.09$ 13,695.24$ Engineering Manager 11,267.12$ 11,830.47$ 12,421.99$ 13,043.09$ 13,695.24$ Public Works Maintenance Manager 10,982.23$ 11,531.35$ 12,107.91$ 12,713.31$ 13,348.97$ Senior Civil Engineer 10,982.23$ 11,531.35$ 12,107.91$ 12,713.31$ 13,348.97$ Principal Management Analyst 10,890.74$ 11,435.29$ 12,007.04$ 12,607.40$ 13,237.78$ Financial Services Manager 10,890.74$ 11,435.29$ 12,007.04$ 12,607.40$ 13,237.78$ Accounting Manager 10,372.13$ 10,890.74$ 11,435.29$ 12,007.04$ 12,607.40$ Sr. Systems Analyst 9,568.73$ 10,047.16$ 10,549.52$ 11,076.99$ 11,630.84$ Senior Management Analyst 9,568.73$ 10,047.16$ 10,549.52$ 11,076.99$ 11,630.84$ Management Analyst II 9,488.41$ 9,962.82$ 10,460.96$ 10,984.01$ 11,533.22$ Associate Civil Engineer 9,488.41$ 9,962.82$ 10,460.96$ 10,984.01$ 11,533.22$ Building and Vehicle Maintenance Manager 9,464.16$ 9,937.36$ 10,434.22$ 10,955.93$ 11,503.73$ Parks Maintenance Manager 9,464.16$ 9,937.36$ 10,434.22$ 10,955.93$ 11,503.73$ Public Works Maintenance Superintendent 9,464.16$ 9,937.36$ 10,434.22$ 10,955.93$ 11,503.73$ Recreation Manager 9,464.16$ 9,937.36$ 10,434.22$ 10,955.93$ 11,503.73$ Senior Accountant 9,311.33$ 9,776.90$ 10,265.75$ 10,779.05$ 11,317.99$ Senior Planner 9,206.70$ 9,667.04$ 10,150.40$ 10,657.92$ 11,190.82$ Senior Human Resources Analyst 9,083.46$ 9,537.63$ 10,014.51$ 10,515.23$ 11,040.99$ Associate Planner 8,768.29$ 9,206.70$ 9,667.04$ 10,150.40$ 10,657.92$ Management Analyst I 8,606.26$ 9,036.58$ 9,488.41$ 9,962.82$ 10,460.96$ Assistant Engineer 8,606.26$ 9,036.58$ 9,488.41$ 9,962.82$ 10,460.96$ Assistant Planner 7,953.09$ 8,350.75$ 8,768.29$ 9,206.70$ 9,667.04$ Junior Engineer 7,806.10$ 8,196.41$ 8,606.24$ 9,036.56$ 9,488.39$ Accountant II 7,660.45$ 8,043.46$ 8,445.63$ 8,867.91$ 9,311.31$ Human Resources Analyst 7,525.35$ 7,901.63$ 8,296.70$ 8,711.54$ 9,147.11$ Technology Analyst II 7,525.35$ 7,901.63$ 8,296.70$ 8,711.54$ 9,147.11$ Communications Manager 7,398.63$ 7,768.56$ 8,156.98$ 8,564.83$ 8,993.07$ Accountant I 6,948.24$ 7,295.65$ 7,660.43$ 8,043.45$ 8,445.61$ Management Assistant to the City Manager 6,830.82$ 7,172.36$ 7,530.97$ 7,907.52$ 8,302.89$ Management Coordinator 6,830.82$ 7,172.36$ 7,530.97$ 7,907.52$ 8,302.89$ Records Analyst II 6,710.77$ 7,046.31$ 7,398.63$ 7,768.56$ 8,156.98$ Technology Analyst I 6,500.69$ 6,825.73$ 7,167.02$ 7,525.37$ 7,901.64$ Payroll Technician 6,500.66$ 6,825.69$ 7,166.99$ 7,525.34$ 7,901.61$ Management Assistant 6,195.77$ 6,505.55$ 6,830.82$ 7,172.36$ 7,530.97$ Records Analyst I 6,086.89$ 6,391.23$ 6,710.79$ 7,046.33$ 7,398.65$

6.14 Attachment 4 - City-District Pay Plan for FY 2023-2024, Effective July 1, 2023

170

Exhibit ACity of Foster City / Estero Municipal Improvement District FY 2023-2024 Pay Plan
Effective July 1, 2023
Hourly
Position Step 1 Step 2 Step 3 Step 4 Step 5
Other Management - Non-Exempt
Deputy City Clerk 42.6844$ 44.8186$ 47.0595$ 49.4125$ 51.8831$ Police Records Supervisor 42.3050$ 44.4202$ 46.6412$ 48.9733$ 51.4220$ Housing Coordinator 49.6515$ 52.1341$ 54.7408$ 57.4778$ 60.3517$ Human Resources Technician 35.7448$ 37.5320$ 39.4086$ 41.3790$ 43.4479$ AFSCME - Maintenance Unit
Public Works Lead Maintenance Worker 40.1052$ 42.1105$ 44.2160$ 46.4268$ 48.7481$ Building Lead Maintenance Worker 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Parks Lead Maintenance Worker 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Irrigation Technician 39.3736$ 41.3423$ 43.4094$ 45.5799$ 47.8589$ Mechanic I 38.9202$ 40.8662$ 42.9095$ 45.0550$ 47.3077$ Building Maintenance Worker II 37.0695$ 38.9230$ 40.8692$ 42.9127$ 45.0583$ Public Works Maintenance Worker II 36.3766$ 38.1954$ 40.1052$ 42.1105$ 44.2160$ Parks Maintenance Worker II 35.7130$ 37.4986$ 39.3735$ 41.3422$ 43.4093$ Equipment Maintenance Worker 35.3018$ 37.0669$ 38.9202$ 40.8662$ 42.9095$ Building Maintenance Worker I 33.6232$ 35.3044$ 37.0696$ 38.9231$ 40.8693$ Public Works Maintenance Worker I 32.9948$ 34.6445$ 36.3767$ 38.1955$ 40.1053$ Parks Maintenance Worker I 32.3928$ 34.0124$ 35.7130$ 37.4986$ 39.3735$ Public Works Maintenance Worker 29.9272$ 31.4236$
Parks Maintenance Worker 29.3812$ 30.8503$
AFSCME - General Unit
Plans Examiner 57.4858$ 60.3601$ 63.3781$ 66.5470$ 69.8744$ Sr. Bldg Inspector 52.1412$ 54.7483$ 57.4857$ 60.3600$ 63.3780$ Building Inspector 47.2936$ 49.6583$ 52.1412$ 54.7483$ 57.4857$ Sr. Engineering Technician 41.9548$ 44.0525$ 46.2551$ 48.5679$ 50.9963$ Recreation Coordinator II 41.4501$ 43.5226$ 45.6987$ 47.9836$ 50.3828$ Social Media / Communication Assistant 39.4086$ 41.3790$ 43.4479$ 45.6203$ 47.9013$ Administrative Assistant II 38.4132$ 40.3339$ 42.3506$ 44.4681$ 46.6915$ Recreation Coordinator I 37.5964$ 39.4762$ 41.4500$ 43.5225$ 45.6986$ Code Enforcement Officer II 37.5319$ 39.4085$ 41.3789$ 43.4478$ 45.6202$ Building Permit Technician II 36.5939$ 38.4236$ 40.3448$ 42.3620$ 44.4801$ Senior Accounting Specialist 35.3789$ 37.1478$ 39.0052$ 40.9555$ 43.0033$ Administrative Assistant I 34.8420$ 36.5841$ 38.4133$ 40.3340$ 42.3507$ Sr. Comm. Services Officer 34.0427$ 35.7448$ 37.5320$ 39.4086$ 41.3790$ Code Enforcement Officer I 34.0427$ 35.7448$ 37.5320$ 39.4086$ 41.3790$ Accounting Specialist 33.6942$ 35.3789$ 37.1478$ 39.0052$ 40.9555$ Building Services Coordinator 33.6232$ 35.3044$ 37.0696$ 38.9231$ 40.8693$ Police Records Specialist 33.1918$ 34.8514$ 36.5940$ 38.4237$ 40.3449$ Building Permit Technician I 33.1918$ 34.8514$ 36.5940$ 38.4237$ 40.3449$ Office Assistant II 30.7981$ 32.3380$ 33.9549$ 35.6526$ 37.4352$ Office Assistant I 27.9348$ 29.3315$
FCPOA
Police Sergeant 68.1757$ 71.5845$ 75.1637$ 78.9219$ 82.8680$ Police Corporal 62.2919$ 65.4065$ 68.6768$ 72.1106$ 75.7161$ Police Dispatch Supervisor 57.2142$ 60.0749$ 63.0786$ 66.2325$ 69.5441$ Police Officer 56.2988$ 59.1137$ 62.0694$ 65.1729$ 68.4315$ Lead Police Dispatcher 52.4087$ 55.0291$ 57.7806$ 60.6696$ 63.7031$ Police Officer Recruit 51.0645$ 53.6177$
Police/Fire Dispatcher 47.5362$ 49.9130$ 52.4087$ 55.0291$ 57.7806$ Hourly / Part-Time / Seasonal
Building Services Coordinator Assistant 18.94$ 19.60$ 20.29$ 21.00$ 21.74$ Recreation Leader III 18.94$ 19.60$ 20.29$ 21.00$ 21.74$ Recreation Leader II 17.68$ 18.30$ 18.93$ 19.60$ 20.29$ Building Serv. Assistant 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Clerical Assistant 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Recreation Leader I 16.50$ 17.08$ 17.68$ 18.29$ 18.93$ Department Intern 16.50$ 30.00$
Videographer 20.00$ 30.00$
Hourly

6.14 Attachment 4 - City-District Pay Plan for FY 2023-2024, Effective July 1, 2023

171

DATE: June 5, 2023

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, District Manager

FROM: Ramon Towne, Interim Public Works Director/City/District Engineer DEPARTMENT: Public Works
SUBJECT: EXTENSION OF ONE YEAR TO THE PILOT

WATER/WASTEWATER RATE ASSISTANCE PROGRAM
(W/WRAP) UNTIL JUNE 30, 2024

RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors adopt a resolution approving a one-year extension until June 30, 2024, of the EMID Pilot Water/Wastewater Rate Assistance Program (W/WRAP). The W/WRAP consists of discounts for eligible applicants of $15 per water and wastewater account per month. Upon the conclusion of the extended year, the Pilot Program shall sunset unless extended by the EMID Board.

EXECUTIVE SUMMARY
The EMID is projecting increases in both the Water and Wastewater Rates over the next ten (10) year period for important infrastructure improvements. In recognition of the anticipated scope of projected rate increases, the EMID Board implemented a Pilot Rate Assistance Program starting in Rate Year 2020-2021 for customers who demonstrated financial need. This program has been extended by the EMID Board, but is scheduled to sunset on June 30, 2023, unless further extended by the Board. The application and program guidelines are available on the City’s website at www.fostercity.org/wwrap.

6.15 6.15 Staff Report

172

The program provides discounts of a flat $15/month credit for each eligible Water and Wastewater account applicants, which is 16% to 18% of the total Water and Wastewater bills for two-person households with typical consumption. Based upon an estimated number of eligible customers, the discount program could have a fiscal impact to the District of as much as $82,000 per year. Currently there are only twenty-two (22) customers enrolled in the program for a total combined annual fiscal impact of $7,920.

Staff included a placeholder in the budget of $9,000 for each utility in the FY 2023-2024 Preliminary Water and Wastewater budgets to fund the program. The program is required to be funded from non-rate sources.

Through the first ten (10) months of FY 2022-2023, revenue from delinquent water payments totaled $47,700 and revenue from delinquent wastewater payments totaled $49,000 which are sufficient to fund the program in each enterprise.

BACKGROUND
As part of the FY 2023-2024 budget preparation process, the District engaged consultant Bartle Wells Associates (BWA) to develop financial projections for its Water and Wastewater Enterprises and to make rate recommendations to cover maintenance, operations, and capital improvements for FY 2023-2024 and the following five-year period. The BWA report shows anticipated average water rate increases of 4.8% per year and average wastewater rate increases of 2.2% (3% in year one and 2% thereafter) for single family homes for the five-year period.

A complete discussion of water and wastewater rates is included as separate agenda items on the June 5, 2023 City Council Regular Meeting agenda.

In recognition of the anticipated scope of the Water and Wastewater rate increases, in May 2020 the EMID Board approved a Pilot Water and Wastewater Rate Assistance Program for customers who demonstrated financial need. Per Resolution No. 3513, the program had a start date of July 1, 2020, and continued for one (1) year, until June 30, 2021, when the Pilot Program would sunset unless extended by the EMID Board. The EMID Board subsequently approved Resolution Nos. 3585 and 3651 extending the program through June 30, 2023.

ANALYSIS
The W/WRAP program utilizes the same financial need thresholds as the Pacific Gas and Electric Company (PG&E) California Alternate Rates for Energy (CARE) discount program. EMID customers can provide documentation that they are enrolled in the PG&E CARE program, or they can demonstrate eligibility through an EMID application process that utilizes the same household income thresholds.

6.15 6.15 Staff Report

173

According to PG&E, 680 customers in Foster City are enrolled in the PG&E CARE Program. BWA estimates that 33% (approximately 227) of these customers are single family residential and therefore would be eligible for the discount. Multi-family units that are not separately metered and/or the bill is not paid by the individual units would not be eligible for the discount.

Based upon the estimated number of eligible customers, a $15/month discount could have a fiscal impact to the District of as much as $82,000 per year for both Water and Wastewater accounts. Currently, there are only thirteen customers enrolled in the program for a total annual fiscal impact of $4,680.

A single-family account with two people residing in the home typically uses an average of fifty (50) gallons/person/day of potable water, which is four (4) units of water per month.

Under the proposed Rate Year 2023-2024 water rates, meters have a fixed charge of $27.60 and residential accounts using less than 20 units of water per billing cycle are billed $6.36 per unit of water. Therefore, Water Meter Charge $27.60 + Water Consumption $25.44 = $53.04/month water charge.

The approved Rate Year 2023-2024 single-family rate for wastewater collection is $130.87 and the charge for separately metered multi-family units is $109.93.

As shown in Table 1, the total cost for an average household under this scenario for both water and wastewater is $183.91 ($130.87 + $53.04) for single family homes or $162.97 ($109.93 + $53.04) for multi- family units. The monthly program credit of $30 ($15 each for water and wastewater) will result in an approximate 16% to 18% reduction for qualifying customers in Rate Year 2023-2024. Because it is a flat credit, homes that use less water receive a higher overall percentage benefit and customers that use more water receive a lower overall percentage benefit than what is shown in the scenario, which is consistent with EMID’s interest in encouraging water conservation.

Under Proposition 218, a non-rate revenue source must be used to offset the cost of discount programs. When it approved the program, the EMID Board approved using delinquent payment fees (late charges) for this purpose. The level of collection of these fees is sufficient to satisfy the funding requirement. Other sources of non-rate revenues could include the Community Benefits Fund, Construction and Demolition forfeitures, or General Fund Revenue.

6.15 6.15 Staff Report

174

Staff’s recommendation to continue the program for an additional one-year term allows for the continued evaluation of both EMID’s revenue sources and community need due to expanding usage of the program. At the conclusion of this one-year extension, staff will bring this item back to the EMID Board to extend or discontinue the program.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
CEQA Guideline Section 15061(b)(3), Common Sense Exemption.

FISCAL IMPACT
Based upon the currently enrolled customers, the annual cost of the W/WRAP program is $7,920. Based on 227 estimated number of eligible customers, the discount of $15/month each per Water and Wastewater account could cost as much as $82,000 per year.

The program is required to be funded from non-rate sources. “Through the first ten (10) months of FY 2022-2023, revenue from delinquent water payments totaled $47,700 and revenue from delinquent wastewater payments totaled $49,000 which are sufficient to fund the program in each enterprise.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Public Safety and Social Equity
ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Program Guidelines

6.15 6.15 Staff Report

175

8 6
0 RESOLUTION NO.

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT APPROVING THE EXTENSION OF A

WATER/WASTEWATER RATE ASSISTANCE PROGRAM (W/WRAP) THROUGH JUNE 30, 2024; AND FINDING ADOPTION OF RESOLUTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINE SECTION 15061(B)(3)

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the District is projecting significant increases in both the Water and Wastewater Rates over the next several years for important infrastructure improvements; and
WHEREAS, in recognition of the scope of projected rate increases, in Fiscal Year 2020-2021, the District Board implemented a Pilot Water/Wastewater Rate Assistance Program for customers who demonstrate financial need; and WHEREAS, the Water/Wastewater Rate Assistance Program provides for a $15 per month discount each for water and wastewater accounts; and WHEREAS, the Water/Wastewater Rate Assistance Program was extended until June 30, 2023, at which time it will automatically sunset unless extended by the EMID Board; and
WHEREAS, a non-rate revenue source must be used to offset the cost in order to maintain compliance with California Proposition 218.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby:

1. Extend the Water/Wastewater Rate Assistance Program of $15 each per water and wastewater account per month for eligible applicants until June 30, 2024, when the program will automatically sunset unless extended by the EMID Board, and

2. Authorize the use of delinquent payment fees as the revenue source for FY 2023- 2024 program costs; and

3. Authorize the District Manager or designee to maintain and update the Program Guidelines and Materials as needed to administer the program.

6.15 Attachment 1 - Resolution

176

8 6
0 PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 5 th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________

JON FROOMIN, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.15 Attachment 1 - Resolution

177

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
1 | Page Rev 2020-07-01
The intent of the Estero Municipal Improvement District Water/Wastewater Rate Assistance Program (W/WRAP) is to provide rate relief to account holders who demonstrate need. In recognition of significant increases in the Water and Wa stewater Rates associated with important infrastructure improvements, the Estero Municipal Improvement District implemented this discount program to make rates more affordable for qualifying customers.

The following guidelines govern the specific procedures and qualifications for this incentive program.

1. About the Program
a. Effective Dates. Funding for the program is authorized and applications will be accepted as of July 1, 2020. Discounts will not be applied retroactively.
b. Discount Amount. Customers meeting the eligibility and qualification requirements below shall be granted a discount of up to $15 per month each on their qualifying Water and Wastewate r accounts, not to exceed a $ 30 per month discount per customer. In no case shall the disc ount exceed the amount of the monthly bill.
c. Di
scounts will be applied to accounts as of the month following enrollment into the program and will be in force for a two-year qualification period unless program is terminated. Requalification is required every two years.

2. Customer Eligibility
a. The EMID Water bill must be in the applicant’s name. b. Applicant must live at the address to which the discount applies. c. Applicant’s home may not share a water meter with another home. d. Another person (besides the applicant’s spouse) may not claim the applicant as a dependent on an income tax return.
e. Applicant must submit required documentation.

3. Required Documentation .
a. Program Application - Submit the most current version of the Program Application form, which can be found on the City of Foster City website: www.fostercity.org b. Documentation of need under one of the following three qualification categories:

A. ENROLLMENT IN PG&E’S RATE ASSISTANCE CARE PROGRAM – Submit proof of enrollment in CARE program

6.15 Attachment 2 - Program Guidelines

178

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
2 | Page Rev 2020-07-01
B. PARTICIPATION IN PUBLIC ASSISTANCE PROGRAM(S) – Submit WIC voucher, recent award letter(s) OR letter of participation in one or more of the following program(s) • Women, Infants, and Children (WIC)
• CalFresh/SNAP (Food Stamps)
• CalWORKs (TANF) or Tribal TANF
• Head Start Income Eligible (Tribal Only)
• Supplemental Security Income (SSI)
• Medi-Cal for Families (Healthy Families A & B)
• National School Lunch Program (NSLP)
• Bureau of Indian Affairs General Assistance
• Medicaid/Medi-Cal
• Pacific Gas and Electric Company Low Income Home Energy Assistance Program (LIHEAP)
C. MAXIMUM HOUSEHOLD INCOME THRESHOLD – Submit documentation of total of all household members' incomes from all eligible sources . Maximum qualifying total gross annual household income is listed in the most current W/WRAP application. Income sources include, but are not limited to the following:
• Wages
• Salaries
• Interest and dividends
• Spousal and child support payments
• Public assistance payments
• Social Security and pensions
• Housing and military subsidies
• Rental income
• Self-employment income
• Employment-related, non-cash income

4. Other Program Requirements
a. Program Participants must notify EMID within 30 days if the household no longer qualifies for the W/WRAP discount.
b. Program participants must requalify every two years. c. Program participants must reapply if they move within the EMID Service Area. d. Program participants may be required by EMID to provide current proof of qualifying income at any time during enrollment in the program.
e. EMID reserves the right to amend or modify qualification requirements for new or renewing participants at any time. Qualifications will not be altered for existing participants during their two year qualification period.

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Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
3 | Page Rev 2020-07-01
f. The incentive program may be terminated by the EMID at any time without notice.

5. Contact Information
All correspondence regarding this program should be addressed to:

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program
610 Foster City Boulevard
Foster City, CA 94404
[email protected]
(650) 286-3260

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DATE: June 05, 2023

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Sofia Mangalam, Community Development Director
Prabhath Silva, Chief Building Official
DEPARTMENT: Community Development
SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL FOR

ON-CALL CONSULTANT SERVICES FOR THE BUILDING

DIVISION

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution, authorizing staff to issue a Request for Proposal (RFP) for an on-call consultant services to augment Building Division staff of the Community Development Department.

EXECUTIVE SUMMARY
The Community Development Department (CDD) is committed to planning, maintaining, and improving the quality of life and public safety of Foster City in keeping with the vision of the City Council in the General Plan and other measures that reflect the City’s heritage as a Master Planned community. CDD is comprised of the Planning/Code Enforcement and Building Divisions. The Building Division is responsible for ensuring that all construction projects permitted within the City comply with the California Building Code, the Foster City Municipal Code and all other applicable codes and regulations. The Building Division provides plan check and building inspection services to ensure compliance with the California Health and Safety Codes.

The Building Division has a staff comprising of six (6) personnel providing services related to building permits and construction activities. Depending on the amount of permitting and construction activity, current staffing levels can pose a challenge in

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providing timely, continuous and uninterrupted services. To overcome these challenges, the implementation of on-call consultant services for inspection, plan review and permitting services is proposed. On-call consultants will provide coverage during increased construction and/or permitting activity and staff absences (both planned and unplanned), ensuring continuity of services, increased flexibility, and enhanced customer satisfaction.

The Building Division intends to select up to two (2) consulting firms to provide on-call consultant services under this RFP. Selected firms will be placed on an official list of qualified consultants who will be called upon to perform plan checks, inspections and/or permit intakes in response to increased workflow demands, staffing challenges and providing quality service to our community.

BACKGROUND/ANALYSIS
Currently, the Building Division is staffed by one (1) Chief Building Official, one (1) Plan Examiner, two (2) Inspectors, and two (2) Permit Technicians. The staffing levels, although adequate, can present a challenge during staffing vacancies, the amount of time taken to fill a vacant position, and staff absences due to vacation, training, and/or illness.

Under such circumstances, staff has to either postpone or reschedule the inspections or delay plan checking, affecting service delivery levels to our customers. Thus, staff determined that adding on-call consulting services to provide continued coverage and ensure that the service is not interrupted would be helpful.

In addition, Assembly Bill 2234 (AB 2234) recently came into effect (on January 1, 2023), which requires that the cities and counties must review building permit applications for completeness within 15 business days and complete an initial review within either 30 business days (for projects of 25 units or less) or 60 working days (for larger projects). If the local agency does not provide notice of a complete or incomplete application within 15 business days, the application will be deemed complete. In addition to AB 2234, there are several other bills that mandate streamlined review and shorter processing timelines including review of Wireless Communications Facilities permits, ADU permits, Solar energy systems, certain housing projects, etc.

The state mandated requirements related to permit streamling, anticipated new construction projects, including Gilead’s new lab buildings and housing development projects, City CIP projects including the Recreation Center Rebuild project might further strain staff resources and availability, potentially leading to delays and service interruptions. The proposed on-call consultant services to augment Building Division staff on an as-needed basis will help building division to manage workload and meet the demands of new construction projects, and ensure consistent and efficient service delivery to the Foster City community including its residents and businesses.

The scope of the RFP includes providing as-needed on call consultant services for building inspection, plan review services, and permit technician services for various types of buildings, residential and non-residential, including, but not limited to:

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1.Building inspections for code compliance.

Consultant shall perform building inspection services for a specified number of hours as directed by the Chief Building Official. These services shall include review of approved plans, specifications and documents, City staff coordination, perform inspections for compliance to applicable State of California Building, Mechanical, Electrical, and Plumbing codes, as well as State energy efficiency and accessibility standards as amended by the City of Foster City. The City references Part 2 of the larger California Building Standards Code, (Title 24) that consists of:
•Part 1: California Administrative Code
•Part 2: California Building Code
•Part 2.5: California Residential Code
•Part 3: California Electrical Code
•Part 4: California Mechanical Code
•Part 5: California Plumbing Code
•Part 6: California Energy Code
•Part 8: California Historical Building Code
•Part 9: California Fire Code
•Part 10: California Existing Building Code
•Part 11: California Green Building Standards Code
•Part 12: California Referenced Standards Code

2.Permit Technicians Services for front counter.

Consultant shall perform permit process services for a specified number of hours as directed by the Chief Building Official. Consultant shall assist architects, contractors, and the public in accepting, processing, and tracking applications for building permits, calculating and collecting permit fees, and general information regarding the permitting process. These services include front counter and phone assistance regarding building permit requirements, plan check fees, plan checks filing procedures and processing, permit status, accepting permit applications, calculating and applying fees, and reviewing plans for conditions of prior approval.

3.Plan Review Services:

Consultant shall perform plan review services as directed by the Chief Building Official. All plan review services provided by Consultant shall include the initial plan review and all subsequent re-reviews as necessary for building permit issuance. Plan Review Services shall include consultation to the building permit applicants as administered by the City staff. Plan Review Services will be performed remotely or on-site in the office spaces at City Hall. The governing codes are the latest versions of City Code of Foster City and California Code of Regulations Title 24 adapted by the City of Foster City.

The draft RFP is included as an attachment (#1) to this staff report.

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If approved, the RFP will be issued on June 6, 2023, with a due date of June 27, 2023.

City staff will review and evaluate the proposed scope of work, schedule, and budget submitted by consultants and will ensure that the proposal meets and fulfills the City’s standards and requirements. Attachment 1 is the proposed Draft RFP that will be issued if the City Council approves this item. Based upon the Scope of Work and Timeline as outlined, an agreement with the prospective on call consulting firm would be tentatively scheduled for City Council consideration and award at its July 17, 2023, meeting.

CEQA
The issuance of an RFP is exempt per CEQA Guideline Section 15061(b)(3), Common Sense Exemption.

FISCAL IMPACT
There is no significant cost to issue the RFP. The cost for the consultant services will be brought to the City Council along with the award of the contract at a future meeting in July including a request for budget appropriation from the General Fund for on call consultant services.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Request for Proposal (RFP)

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REQUEST FOR PROPOSALS (RFP)

The City of Foster City ("City") is requesting proposals from qualified consulting firms for the work entitled:

REQUEST FOR PROPOSALS FOR ON -CALL CONSULTANT SERVICES

FOR THE BUILDING DIVISION FOR THE CITY OF FOSTER CITY

Date of Issuance: June 6, 2023
Questions Due: June 19, 2023
Due Date: June 27, 2023
Award of Contract: Tentative date July 17, 2023

Proposals shall be submitted by qualified cons ulting firms that have demonstrated verifiable experience in providing services as outlined in the scope of work described in this RFP.

The proposals shall be addressed to:

City of Foster City
Community Development Department
Attention: Prabhath Silva, Chief Building Official
610 Foster City Boulevard
Foster City, CA 94404

Subject: Response to RFP for On-Call Consultant Services for the Building Division for the City of Foster City.

Proposals shall be submitted by email to [email protected] so that
they are received no later than 5:00 P.M. on Tuesday, June 2 7, 2023. It is the responsibility of the proposer to ensure that the submission is received by 5:00 PM on June 27, 2023. Proposals received after the deadline will not be considered. For this reason, the City encourages submission of responses early. The City shall acknowledge receipt of the submission once it is received but will not review any submission prior to the submission deadline.

All inquiries regarding the project and this RFP shall be directed to Prabath Silva, Chief Building Official, via telephone at (650) 286-3227 or, preferably, via email at [email protected]
.

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I. Introduction

Foster City is located midway between San Francisco and San Jose on the western shoreline of the San Francisco Bay, east of U.S. 101, which provides convenient access to the San Francisco Airport and San Francisco to the north and Santa Clara County to the south. The City is bisected by State Route 92 (the J. Arthur Younger Freeway), which runs between Half Moon Bay to the west and Highway 880 to the east via the San Mateo- Hayward Bridge. The City encompasses 12,345 acres, of which 9,726 acres are part of San Francisco Bay and Belmont Slough, and 2,619 acres are land area. The City of Foster City is a full-service, General Law City with a Council -Manager form of government.

The City Council also serves as the Board of Directors for the Estero Municipal Improvement District (“District”). The District, although a separ ate legal entity, encompasses the same geographical area, is inhabited by the same citizens and governed by the same bodies and procedures as the City. The City/District collectively call (‘City”) has approximately 197 employees who deliver high quality municipal services to its 33,693 residents. The Community Development Department is organized into two (2) Divisions.

• The Planning/Code Enforcement Division is responsible for long term planning regarding growth and development of the City, for reviewing and processing applications for all land use and development proposals, and for maintaining the appearance of the community.
• The Building Division is responsible for ensuring that all construction Foster City

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projects permitted within the City comply with the Californi a Building Code, the Foster City Municipal Code and all other applicable codes and regulations.

The City of Foster City is seeking proposals from qualified firms for Building Inspections, Permit Technicians, and Plan Review Services. The selected firm(s) will be responsible for providing as-needed services to the City of Foster City's Building Division.

II. Scope of Work:

The City desires a high level of professionalism and customer services to residents, businesses, and contractors, through continuity of on call professional building services. The selected consulting firm shall provide on call professional building services of residential or non- residential projects as requested by the City that fall under the areas of expertise noted below. The scope of work may include, but is not limited to:

1. Building inspections for code compliance.

Consultant shall perform building inspection services for a specified number of hours as directed by the Chief Building Official. These services shall include review of all approved plans, specifications and documents, review and respond to all inspection requests and reports, City staff coordination, perform inspections for compliance to applicable State of California Building, Mechanical, Electrical, Plumbing codes, as well as State energy efficiency and accessibility standards as amended by the City of Foster City. The City references Part 2 of the larger California Building Standards Code (Title 24) that consists of:
• Part 1: California Administrative Code
• Part 2: California Building Code
• Part 2.5: California Residential Code
• Part 3: California Electrical Code
• Part 4: California Mechanical Code
• Part 5: California Plumbing Code
• Part 6: California Energy Code
• Part 8: California Historical Building Code
• Part 9: California Fire Code
• Part 10: California Existing Building Code
• Part 11: California Green Building Standards Code
• Part 12: California Referenced Standards Code

2. Permit Technicians Services for front counter.

Consultant shall perform permit process services for a specified number of hours as directed by the Chief Building Official. Consultant shall assist architects, contractors, and the public in accepting, processing, and tracking

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applications for building permits, calculating and collecting permit fees, and general information regarding permitting process. These services include front counter and phone assistance regarding building permit requirements, plan check fees, plan check filing procedures and processing, permit status, accepting permit applications, calculating and applying fees, and reviewing plans for conditions of prior approval.

3. Plan Review Services:

The Consultant shall provide comprehensive plan review services as directed by the Chief Building Official. The scope of plan review services offered by the Consultant shall include the initial plan review and all subsequent re-reviews necessary for building permit issuance.

The fees for Plan Review Services shall be structured as follows:

1. Full Pla n Review: This service includes a thorough review of all disciplines involved in the project, including but not limited to architectural, electrical, plumbing, mechanical , Energy, and Green Codes. The Consultant shall evaluate compliance with the latest versions of the City Code of Foster City and the California Code of Regulations Title 24, as adapted by the City of Foster City.

2. Structural Only Reviews: This service specifically focuses on the structural components of the project. The Consultant shall review and assess the structural plans for compliance with the latest versions of the City Code of Foster City and the California Code of Regulations Title 24, as adapted by the City of Foster City.

3. On-site Plan Reviewer Services: This service provi des the option for the Consultant to conduct plan reviews on-site at the office space within City Hall.

All Plan Review Services, regardless of the selected option, shall include consultation with the building permit applicants, facilitated by City staff. The consultation process aims to address any inquiries or concerns raised by the applicants during the plan review stage.

The Consultant's fees for Plan Review Services shall be based on the selected option and shall be detailed in the proposal. The proposal should clearly outline the hourly rates or fixed fees associated with each service option. The fees shall cover the cost of the initial plan review, subsequent re-reviews, and consultation services.

The governing codes for Plan Review Services are the latest versions of the City Code of Foster City and the California Code of Regulations Title 24, as adapted by the City of Foster City.

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Please provide a comprehensive proposal that clearly defines the fees and deliverables for each service option, as well as any additional terms or conditions applicable to the Plan Review Services.

The selected firm(s) must have the necessary resources and expertise to provide timely and on-call inspections, permit technician services and plan reviews.

Invoicing
Consultant will submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed prior to the invoice date. Invoices will contain the following information:
• The beginning and ending dates of the billing period; • Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; • Task Summary describing the services provided by person doing the work, the hours spent by each person, and a brief description of the work.

III. Proposal Submission:

Interested firms should submit a proposal including the following information:

1. A letter of interest and executive summary.

2. Firm's experience in providing building inspection, permit technicians and plan review services to other municipalities.

3. Firm's understanding of the City of Foster City's building code requirements and ability to meet these requirements.

4. Firm's qualifications, including a list of key personnel who will be assigned to the project.

5. Proposed project approach, including timelines and work plans.

6. Firm's fee proposal, including hourly rates for each type of service offered.

7. References from at least two municipalities where the firm has provided similar services.
• References should include the following:
• Name, address, and telephone number of the agency
• Time period for the project
• Brief description of the scope of work
• Reference contact name, email, and telephone number

8. Acknowledgement of the City’s Agreement for Professional Serv ices:

Submissions must include a statement that the proposer has reviewed the template Professional Services Agreement and agrees to execute and comply with an agreement in the form of that template if the proposal is selected. This statement should also indicate that the proposer will be able to fulfill the insurance requirements included in the template Agreement. If the proposer intends to request changes to the template Agreement, those requested changes must be included in a redlined “track changes” dr aft of

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the template Agreement included with the Submission. If no changes are requested, the selected proposer shall be expected to execute the Agreement without alteration.

IV. Selection Criteria:

The City of Foster City will evaluate proposals based on the following criteria:

1. Firm's experience providing building inspection and plan review services.

2. Firm's understanding of the City of Foster City's building code requirements and ability to meet these requirements.

3. Qualifications of the firm's key personnel.

4. Proposed project approach and work plan.

5. Fee proposal.

6. References.

The City of Foster City reserves the right to reject any or all proposals and to waive any irregularities in the proposals received.

Selection Schedule:

Action Date Issuance of Request for Proposal June 06, 2023 Deadline for Email of Intent to Respond June 13, 2023 Deadline for Written Questions and Comments June 19, 2023 City Issues Responses to Written Questions and Comments June 23, 2023 Proposals due (@ 5PM) June 27, 2023
Council Award of Contracts (Tentative) July 17, 2023

V. Note regarding the Public Records Act:

Government Code Sections 6250 et seq., the California Public Record Act, defines a public record as any writing containing information relating to the conduct of the public's business. The Public Record Act provides that public records shall be disclosed upon written request, and that any citizen has a right to inspect any public record unless the document is exempted from disclosure.

Be advised that any contract that eventually arises from this Request for Proposals is a public record in its entirety. Also, all information submitted in response to this Request for Proposals is itself a public record without exception.

Submission of any materials in response to this Request for Proposals constitutes a waiver by the submitting party of any claim that the information is protected from disclosure. By submitting materials, (1) you are consenting to the release of such materials by the City of Foster City ("Foster City") if requested under the Public Records Act without further notice to you, and (2) you agree to indemnify and hold harmless Foster City for the release of such information.

If Foster City rec eives a request for any portion of a document submitted in

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response to this RFP, Foster City will not assert any privileges that may exist on behalf of the person or entity submitting the proposal, and Foster City reserves the right to disclose the requested materials without notice to the party who originally submitted the requested material. To the extent consistent with the Public Records Act and applicable case law interpreting those provisions, Foster City and/or its officers, agents, and employees ret ain discretion to release or withhold any.

A. GENERAL INFORMATION FOR PROPOSALS

1. The prospective consulting firm shall submit one (1) soft (digital) copy by email of its proposal to the City no later than June 27, 2023, at 5:00 P.M.*

2. Any questions related to the project and/or this RFP shall be directed to Prabath Silva, Chief Building Official, by email at [email protected] no later than 5:00 P.M. on Thursday, June 19, 2023.

3. The proposal shall be signed by an authorized official of the firm.

4. All costs incurred in the preparation of the proposal shall be the sole responsibility of the consultant.

5. The City reserves the right to reject any and all proposals and to request additional information concerning any proposal for purposes of clarification.

6. If awarded a contract, the consultant shall maintain insurance coverage, including workers' compensation, reflecting the minimum amounts and conditions specified by the City.

7. The terms and scope of the contract shall be arranged on the basis of professional negotiations between the City and the prospective consultant.

If the City and the prospective consultant fail to reach a contractual agreement, the City may then renegotiate with any other consultant.

8. The consultant will comply with access to records, conflict of interest, and other provisions as required.

B. TERMS AND CONDITIONS

Issuance of this RFP does not commit the City to award a contract for services or to pay any costs incurred in the preparation of a response to this request. The City retains the right to reject any and all submittals. Once submitted, the proposals become the property of the City.

The consultant selected to perform the scope of services described in this RFP will be required to obtain a Foster City Business License. For more information regarding the Business License process, or to obtain a Business License application packet, please visit the City's Business License webpage at:
https://www.fostercity.org/finance/page/business-license-application .

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Exhibit A: Standard Professional Services Agreement.

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DRAFT
[Project Name] Updated 1/18/2022 1

PROFESSIONAL SERVICES AGREEMENT
FOR

ON-CALL CONSULTANT SERVICES FOR THE BUILDING DIVISION
This A
greement is made and entered into as of the _____ day of ____________, 20___ by and between the City of Foster City hereinafter cal led "CITY " and ____________________ hereinafter called "CONSULTANT".

RECITA LS
This A
greement is entered into with reference to the following facts and circumstances:

WHEREAS
, CITY desires to engage CONSULTANT to provide professional services in the CITY;

WHEREAS
, CONSULTANT is qualified to provide such services to the CITY and; NOW,
THEREFORE, in consideration of the mutual promises, covenants, terms and conditions hereinafter contained, the parties hereby agree as follows:

TERMS AND CONDITIONS

1. Services. The service s to be performed by CONSULTANT under this Agreement shall include those services set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Perfor
mance of the work specified i n said Exhibit A is hereby made an obligation of CONSULTANT under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where i
n conflict, the terms of this Agreement supersede a nd prevail over any terms set forth in Exhibit A.

2. Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and shall expire upon completion of performance of services hereunder by CONSULTANT. (b)
Notwithstanding the provisions of (a) above, CITY may with or without cause, direct CONSULTANT to suspend, delay or interrupt Services, in whole or in part, for such periods of time as CITY may determine in its sole discretion. ( c) CITY may terminate performance of the Services under this Agreement in whole, or from time to time in part, for default, should CONSULTANT commit a material breach of this Agreement, or part thereof, and not cure such breach within ten (10) calendar days of the

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DRAFT
[Project Name] Updated 1/18/2022 2

date of CITY’s written notice to CONSULTANT demanding such cure, in which case CONSULTANT shall be liable to CITY for all loss, cost, expense, damage and liability resulting from such breach and termination. (d) CITY may terminate performance of the Services under this Agreement in whole, or from time to time in part, for convenience, whenever CITY determines that such termination is in CITY’s best interests, in which case CONSULTANT shall be entitled to recover its costs expended up to the termination date plus reasonable profit thereon to the termination date as this Agreement would otherwise provide, but may recover no other cost, damage or expense. CONSULTANT shall continue its work throughout the course of any dispute, and CONSULTANT’s failure to continue work during a dispute shall be a material breach of this Agreement.

3. Compensation; Expenses; Payment . CI
TY shall compensate
CONSULTANT for all services performed by CONSULTANT hereunder in an amount based upon C ONSULTANT’s hourly rates during the time of the performance of said services. A copy of CONSULTANT ’s hourly rates for which services hereunder shall be performed are set forth in CONSULTANT’s fee schedule marked Exhibit “B” hereof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and rei
mbursement of costs payable hereunder shall not exceed the sum _____________________ ($________________). Invoices for amounts in excess of ______ _______________ ($________________) shall not be paid unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by the City Manager (for contracts less than $50 ,000) or City Council (for contracts $ 50,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Compensation and reimbursement of costs and expenses hereunder shall be pay
able upon monthly billing therefor by CONSULTANT to CITY, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed. Final payment will be made when all Services required under this Agreement have been completed to the reasonable satisfaction of CITY including, without limitation, CONSULTANT's transmittal of all deliverables to CITY required by EXHIBIT A.

CITY shall not incur any charges under this Agreement, nor shall any payments become due to CONSULTANT for any payment period on the Project, until CITY receives all deliverables required under Exhibit A , SCOPE OF WORK AND SCHEDULE, for the payment period (if any) and

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DRAFT
[Project Name] Updated 1/18/2022 3

reasonably accepts such deliverables as meeting the requirements of this Agreement. In cases where CONSULTANT has partially completed one or more deliverables due during a payment period, and if CONSULTANT demonstrates diligent progress thereon, then CITY may make a partial progress payment based upon percentage completion of the partially completed deliverables and diligent progress but taking into account any adverse impacts upon CITY. CITY shall not be liable for, and CONSULTANT shall not be entitled to, any payment for Services performed before this Agreement's execution.

4. Additional Services .

In the event CITY desires the performance of
additional services not otherwise included within the services described in Exhibit A, such services shall be authorized in advance of the performance thereof by the City Manager (for contracts less than $50,000) or City Council (for contracts $ 50,000 or more) by motion duly made and carried. Such amendment to this Agreement shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor , the time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. CO
NSULTANT shall keep and maintain accurate records of all time expended and costs and expenses incurred relating to services to be performed by CONSULTANT hereunder. Said records shall be available to CITY for review and copying during regular business hours at CONSULTANT’s place of business or as otherwise agreed upon by the parties.

6. Authorization. This Agreement becomes effective when endorsed by both parties in the space provided below.

7. Reliance on Professional Skill of CO NSULTANT. CONSULTANT represents that it has the necessary professional skills to perform the services required and the CITY shall rely on such skills of the CONSULTANT to do and perform the work. In performing services hereunder CONSULTANT shall adhere to the standards generally prevailing for the performance of expert consulting services similar to those to be performed by CONSULTANT hereunder.

CO
NSULTANT represents that it has reviewed Exhibit A and that in its professional judgment the Services to be performed under this Agreement can be performed for a fee within the maximum amount set forth in the

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DRAFT
[Project Name] Updated 1/18/2022 4

Compensation Schedule established in Exhibit A and within the times specified for each individual Project.

CONSULTANT represents that it possesses all necessary training, licenses and permits to perform the Services and that its performance of the Services will conform to the standards of practice of a professional having experience and expertise in performing professional services of like nature and complexity of the Services working on similar, successfully completed projects.

The granting of any progress payment by CITY, or the receipt thereof by CONSULTANT, or any inspection, review, approval or oral statement by any representative of CITY or any other governmental entity, shall in no way waive or limit the obligations in this Paragraph 7 or lessen the liability of CONSULTANT for unsatisfactory Services, including but not lim ited to cases where the defective or below standard Services may not have been apparent or detected at the time of such payment, inspection, review or approval.

8. Documents.

All documents, plans, drawings, renderings, and other
papers, or copies thereof, as finally rendered, prepared by CONSULTANT pursuant to the terms of this Agreement, shall, upon preparation and delivery to CITY, become the property of CITY.

9. Relationship of Parties. CO
NSULTANT is an independent Contractor and
does not act as City ’s agent in any capacity, whatsoever. CONSULTANT is not entitled to any benefits that CITY provides to CITY employees, including, without limitation, worker’s compensation benefits or payments, pension benefits, health benefits or insurance benefits. Ter ms within this Agreement regarding direction apply to and concern the result of the CONSULTANT’s provision of Services, not the means, methods, or scheduling of the CONSULTANT’s work. CONSULTANT shall be solely responsible for the means, methods, techniques, sequences and procedures with respect to its provision of Services under this Agreement.

CONSULTANT shall pay all payroll taxes imposed by any governmental entity and shall pay all other taxes not specifically ident ified in this Agreement as CITY’s responsibility.

10. Schedule. CO
NSULTANT shall adhere to the schedule set forth in Exhibit A; provided, that CITY shall grant reasonable extensions of time for the performance of such services occasioned by governmental reviews of CONSULTANT’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, CONSULTANT’s officers or employees.

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DRAFT
[Project Name] Updated 1/18/2022 5

CONSULTANT acknowledges the importance to CITY of CITY’s Project schedule and agrees to put forth its best professional efforts to perform its services under this Agreement in a manner consistent with that schedule.

11. Indemnity. T o the fullest extent allowed by law, CONSULTANT hereby agrees to defend, indemnify, and save harmless CITY, its Council, boards, commissions, officers, employees , directors, volunteers and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, injury (including, without limitation, economic harm, injury to or death of any person, including an employee of CONSULTANT or its Subconsultants), cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, at law or equity, which may be brought against, o r suffered or sustained by, City of Foster City , its Council, boards, commissions, officers, employees, directors, volunteers or agents that arise out of , pertain to, or relate to any negligence, recklessness, or willful misconduct of CONSULTANT, any Subconsultant, anyone directly or indirectly employed or retained by them, or anyone that they control. In the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the CONSULTANT shall meet and confer with other parties regarding unpaid defense costs.

The d
uty of CONSULTANT to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require CONSULTANT to indemnify City of Foster City, its Council, boards, commissions, officers, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.

The defense and indemnification obligations of this agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.

If CONSULTANT is a “design professional,” as defined in California Civil Code Section 2782.8(c), CONSULTANT shall indemnify, defend, and hold the Indemnitees harmless against Liability only to the extent such Liability arises out of, pertains to, or relates to CONSULTANT’s negligence, recklessness, or willful misconduct. In such an event, the cost to defend charged to CONSULTANT shall not exceed CONSULTANT’s
proportionate percentage of fault.

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12. Insurance. P
rior to execution of this Agreement, CONSULTANT shall
furnish to CITY Certificates of Insurance showing satisfactory proof that it maintains the insurance required by this Contract as set forth in EXHIBIT C, Insurance, which are attached and made a part of this Agreement.

CONSULTANT shall maintain all required insurance throughout the term of this Agreement and as otherwise provided in EXHIBIT C. In the e vent CONSULTANT fails to maintain any required insurance, and notwithstanding Paragraph 3 above, CITY may (but is not obligated to) purchase such insurance and deduct or retain premium amounts from any sums due CONSULTANT under this Agreement (or CONSULTANT shall promptly reimburse CITY for such expense).

CONS
ULTANT shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following completion of this project or service.

In the event CONSULTANT fails to obtain or maintain completed operations coverage as required by this Agreement, the CITY at its sole discretion may purchase the coverage required and the cost will be paid by CONSULTANT.

13. WORKERS' COMPENSATIO
N. CONSULTANT certifies that he is aware
of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self -insurance in accordance with the provisions of that Code, and CONSULTANT certifies that he will comply with such provisions before commencing the performance of the work of this agreement.

14. NON-DI
SCRIMINATION. The CONSULTANT will not discriminate against any employee or applicant for employme nt because of race, color, religion, sex or national origin. The CONSULTANT will take affirmative action to ensure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101- 336) which prohibits discrimination on the basis of disability by public entities. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

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15. Notice. All notices required by this Agreement shall be given to the CITY and CONSULTANT in writing, by first class mail, postage prepaid, addressed as follows:

CIT
Y: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: ____________________

CONSULTANT: ____________________________
(Fill in CONSULTANT Name, Address, Phone
Number, Project Manager and Email Address
for CONSULTANT)

16. Non-A
ssignment. This Agreement is not assignable either in whole or in part.

17. Amendments. This Agreement may be amended or modified only by written agreement signed by both parties.

18. Validity.

The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

19. Governing Law. This Agreement shall be deem e
d to have been executed
in the County of San Mateo, California. The formation, interpretation and performance of this Agreement shall be governed by the laws of the State of California, excluding its conflict of laws rules . Any suit or action initiated by either party shall be brought in the County of San Mateo, California unless the parties agree otherwise in a written amendment to this Agreement. In the event of litigation between the parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

20. Mediation.

Should any dispute arise out of this Agreement, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs.

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21. Conflict of Interest. CONSULTANT represents and warrants that it presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of work and services required under this Agreement . Without limitation, CONSULTANT represents to and agrees with CITY that CONSULTANT has disclosed any potential conflict of interest, and will have no future conflict of interest, in providing CITY services hereunder, including but not limited to, any interest (financial, share ownership, shared management, shared directors, or reporting responsibilities) CONSULTANT may presently have, or will have in the future, with respect to any other person or entity (including but not limited to potential suppliers, vendors, consultants, contractors, or regulatory agency) which may have an interest in the subject matter of the Services.

22. Liability of CITY.

Except as provided in Exhibit A, Services to be Provided by CONSULTANT and Exhibit C, Insurance, CITY's obligations under this Agreement shall be limited to the payment of the compensat ion provided for in Paragraphs 1, 3, and 4 of this Agreement,

Notwithstanding any other provision of this Agreement, in no event shall CITY be liable, regardless of whether any claim is based on contract, tort or otherwise, for any special, consequential, indirect or incidental damages, lost profits or revenue, arising out of or in connection with this Agreement, the Services, or the Project.

CITY shall not be responsible for any damage to persons or property as a result of the use, misuse or failure of any equipment used by CONSULTANT, or by any of its employees, even though such equipment be furnished, rented or loaned to CONSULTANT by CITY. The acceptance or use of such equipment by CONSULTANT or any of its employees shall be construed to mean that C ONSULTANT accepts full responsibility for and shall exonerate, indemnify, defend and save harmless CITY from and against any and all claims for any damage or injury of any type, including attorneys' fees, arising from the use, misuse or failure of such equipment, whether such damage be to the CONSULTANT, its employees, CITY employees or third parties, or to property belonging to any of the above.

Nothing in this Agreement shall constitute a waiver or limitation of any right or remedy, whether in equity or at law, which CITY or CONSULTANT may have under this Agreement or any applicable law. All rights and remedies of CITY or CONSULTANT, whether under this Agreement or other applicable law, shall be cumulative.

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23. Waiver of Default. Waiver of any default by either party to this Agreement shall not be deemed to be waiver of any subsequent default. Waiver or breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach, and shall not be construed to be a modification of the terms of this Agreement unless this Agreement is modified as provided below.

24. Force Majeure. Excep t
for defaults of subconsultants at any tier,
CONSULTANT shall not be liable for any excess costs if the failure to perform the Agreement arises from causes beyond the control and without the fault or negligence of CONSULTANT, including without limitation failure to reasonably mitigate any adverse impacts (Force Majeure) .

Force Majeure events include the following:

A
cts of God, fires, floods, earthquake, other natural disasters, epidemics and pandemics (other than COVID -19 or variants), abnormal weather conditions beyond the parameters otherwise set forth in this Article, nuclear accidents, strikes, lockouts, fr eight embargos, interruptions in service by a regulated utility, or governmental statutes or regulations enacted or imposed after the fact (together, “force majeure events”).

[For consideration if applicable:] Any Force Majeure event with a dur ation in excess of [ TBD by Owner —recommend not less than 30] days enti tles either party to terminate this Agreement with written notice to the other party, without further penalty or compensation.

25. Entire Agreement .

This Agreement, including Exhibi ts A , B , C, and D
comprises the entire Agreement.

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF FOSTER CITY

Dated: ___
______________________________
______________________, City Manager
(for contracts less than $50,000)
[REMOVE signature line if $50,000 or more]

Dated: ______
___________________________
Sanjay Gehani, Mayor

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(for contracts $50,000 or more)
[REMOVE signature line if less than $50,000]

ATTE
ST:

Dated: ______ __________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM

Dated:

Benjamin Stock, City Attorney

CONSULTANT

Dated:

Type Name & Title of CONSULTANT
Authorized to Sign

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EXHIBIT A

SERVICES TO BE PROVIDED, PAYMENTS, PROJECTS AND SCHEDULE, AND

DELIVERABLES FOR
[ENTER PROJECT TITLE]

[EITHER COMPLETE EXHIBIT A OR ATTACH A PROPOSAL/SCOPE OF WORK THAT CONTAINS ALL THE INFORMATION BELOW AND DELETE THE TEXT BELOW]

SERVI

CES TO BE PROVIDED

This is an Exhibit attached to, and made a part of and incorporated by reference to the Agreement dated Date of Agreement, by and between Consultant Name, hereinafter referred to as "CONSULTANT" and the City of Foster City, hereinafter referred to as "CITY" providing for professional services.

1. De
scription of the Project:

1.1 DES CRIPTION: Description of Project

2. Basic Services:

The CITY has developed a general scope of work as described below.

2.1 Tas k 1 – Description of Task 1

2.2 Tas k 2 – Description of Task 2

2.3 Tas k 3 – Description of Task 3

PAYMENTS

1. The maximum payment to CONSULTANT under this Agreement for the Project shall be:

Maximum Payment Amount

2. METHODS OF PAYMENT FOR CONSULTANT’S SERVICES AND EXPENSES:

List Methods of Payment

3. TIMES OF PAYMENTS.

List Times of Payments

PROJECTS AND SCHEDULE

List Project Schedule

DELIVERABLES

CONSULTANT’s deliverables under the Agreement are enunciated throughout the Professional Services Agreement and include but are not limited to the following:

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1. PROJECT DELIVERABLES

1.1 DEL IVERABLES: List of Deliverables

1.2 OTHER:

2. CONSULTANT SERVICES . The deliverables considered part of CONSULTANT’s professional services are defined as, but are not limited to, the following deliverables:

2.1 SERVICES: List of Services

END OF EXHIBIT A

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EXHIBIT B

FEE SCHEDULE

[Specify Consultant’s hourly rates for which services hereunder shall be performed]

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EXHIBIT C

INSURANCE FORMS

CONSULTANT shall provide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified in herein on the attached form. No substitute form will be accepted.

This is an Exhibit to, and made a part of and incorporated by reference to the Agreement dated Date of Agreement, by and between Consultant Name, hereinafter referred to as " Consultant”, and the City of Foster City, hereinafter referred to as "City", providing for professional services.

1. Co
nsultant's Duty to Show Proof of Insurance. Consultant, in order to protect City and its Council members, officials, agents, officers, and employees against all claims and liability for death, injury, loss and damage as a result of Consultant's acts, errors, or omissions in connection with the performance of Consultant's obligations, as required in this Agreement, shall secure and maintain insurance as described below. Consultant shall not perform any work under this Agreement until Consultant has obtained all insurance required under this section and the required certificates of insurance and all required endorsements have been filed with the City 's authorized insurance representative, insurance Tracking Services Inc. (ITS). Receipt of evidence of insurance that does not comply with all applicable insurance requirements shall not constitute a waiver of the insurance requirements set forth herein. The required documents must be signed by the authorized representative of the insurance company shown on the certificate. Upon request, Consultant shall supply proof that such person is an authorized representative thereof, and is authorized to bind the named underwriter(s) and their company to the coverage, limits and termination provisions shown thereon, Consultant shall promptly deliver to ITS a certificate of insurance, and all required endorsements, with respect to each renewal policy, as necessary to demonstrate the maintenance of the required insurance coverage for the term specified herein. Such certificates and endorsements shall be delivered to ITS prior to the expiration date of any policy and bear a notation evidencing payment of the premium thereof if so requested.

Consultant shall immediately pay any deductibles and self -insured retentions under all required insurance policies upon the submission of any claim by Consultant or City as an additional insured.

1.1 Insurance Requ
irements

Commercial General Liability Insurance

Commercial General Liability Insurance including, but not limited to, Contractual Liability Insurance (specifically concerning the indemnity provisions of this Agreement with the City ), Products-Completed Operations Hazard, liability for slander, false arrest and invasion of privacy arising out of professional services rendered hereunder, Personal Injury (including bodily injury and death), and Property Damage for liability arising out of Consultant's performance of services under this Agreement. The Commercial General Liability insurance shall contain no exclusions or limitation for independent contractors working on the behalf of the named insured. Consultant shall maintain the Products -Completed Operations Hazard coverage for the longest period allowed by law following termination of this Agreement. The amount of said insurance coverage required by this Agreement shall be the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence and five million dollars ($5,000,000) aggregate.

*Please note, the C
ity will require a separate additional insured endorsement for the Commercial General Liability policy, listing the “ City of Foster City , its Council members, officials, agents, officers, and employees”.

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[FOR THE FOLLOWING INSURANCE REQUIREMENTS, PLEASE CONSIDER IF EACH IS APPROPRIATE FOR THE SERVICE TO BE PROVIDED AND FOR THE CONSULTANT. UNCHECK THE CHECKBOX FOR ANY INSURANCE REQUIREMENT THAT IS NOT APPLICABLE. PLEASE CONTACT THE CITY MANAGER’S OFFICE WITH ANY QUESTIONS.]
☒ Business Automobile Liability Insurance

Automobile Liability Insurance against claims of Personal Injury (including bodily injury and death) and Property Damage covering any vehicle and/or all owned, leased, hired and non- owned vehicles used in the performance of Services pursuant to this Agreement with coverage equal to the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence.

☒ Workers' Compensation Insurance

Consultant shall submit written proof that Consultant is insured against liability for workers' compensation in accordance with the provisions of section 3700 of the California Labor Code. Consultant shall require any Subconsultants to provide workers' compensation for all of the Subconsultants' employees, unless the Subconsultants' employees are covered by the insurance afforded by Consultant. If any class of employees engaged in work or services performed under this Agreement is not covered by California Labor Code section 3700, Consultant shall provide and/or require each Subconsultant to provide adequate insurance for the coverage of employees not otherwise covered. Consultant shall also maintain employer's liability insurance with limi ts of one million dollars ($1,000,000) for bodily injury or disease.

☒ Professional Liability Insurance

Professional Liability (Errors and Omissions) Insurance, for liability arising out of, or in connection with, all negligent acts, errors or omissions in connection with services to be provided under this Agreement, with no exclusion for claims of one insured against another insured, with coverage equal to the policy limits, which shall not be less than five million dollars ($5,000,000) per occurrence and five million dollars ($5,000,000) aggregate.

☒ I
nstallation Floater

Installation Floater, covering the work performed under this Contract, against all risks of direct physical loss. The policy shall cover the Contractor’s labor, materials and equipment, including materials and equipment in transit or away from the project site, to be installed in the existing structure(s). The coverage shall be written for an amount equal to the initial contract amount plus the value of any subsequent change orders, subject to a deductible of not more than [$10,000] payable by Contractor.

☒ Cyber Liability Insurance

Cyber Liability Insurance, covering network risk and cyber liability (including coverage for unauthorized access, failure of security, breach of privacy perils, as well at notification costs and regulatory defense) in an amount of not less than $1,000,000. Such insurance shall be maintained in force at all times during the term of the Contract and for a period of two years thereafter for services completed during the term of the Contract.

1.2 Self-I
nsured Retention

Any self -insured retentions in excess of $100,000 must be declared on the Certificate of insurance or other documentation provided to City and must be approved by the City Risk Manager.

1.3 Claim s-Made Basis Coverage

If any of the insurance coverages required under this Agreement is written on a claims -made basis, Consultant, at
Consultant's option, shall either (i) maintain said coverage for at least five (5) years following the termination of this Agreement with coverage extending back to the effective date of this Agreement; (ii) purchase an extended reporting

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period of not less than five (5) years following the termination of this Agreement; or (iii) acquire a full prior acts provision on any renewal or replacement policy.

2. City as Additional Insured

On Consultant's Commercial General Liability and Automobile policies, the City, its Council members, officers, directors, agents, employees, and volunteers, shall be named as additional insured's, but only with respect to liability arising out of the activities of the named insured. Any endorsement shall be provided using one of the following three options: (i) on ISO form CG 20 10 1 1 85; or (ii) on ISO form CG 20 37 10 01 plus either ISO form CG 20 10 10 01 or CG 20 33 10 01; or (iii) on such other forms which provide coverage at least equal to or better than form CG 20 10 1 1 85.

3. Insurance terms and conditions:

3.1 Cancellation of Insurance

The above stated insurance coverages required to be maintained by Consultant shall be maintained until the completion of all of Consultant's obligations under this Agreement except as otherwise indicated herein. Each insurance policy supplied by Consultant shall not be suspended, voided, cancelled or reduced in coverage or in limits except after ten (10) days written notice by Consultant in the case of non- payment of premiums, or thirty (30) days written notice in all other cases. This notice requirement does not waive the insurance requirements stated herein.

Consultant shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non- renewed, or whose policy limits have been exhausted or upon insolvency of the insurer that issued the policy.

3.2 All insurance shall be issued by a company or companies admitted to do business in California and listed in the current "Best's Key Rating Guide" publication with a minimum rating of A -; VII Any exception to these requirements must be approved by the City Risk Manager.

3.3 If Consultant is, or becomes during the term of this Agreement, self -insured or a member of a self -insurance pool, Consultant shall provide coverage equivalent to the insurance coverages and endorsements required above.

The City will not accept such coverage unless the City determines, in its sole discretion and by written acceptance, that the coverage proposed to be provided by Consultant is equivalent to the above- required coverages.

3.4 For any claims related to the Agreement, the Consultant’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City , its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

3.5 Insurance coverages in the minimum amounts set forth herein shall not be construed to relieve Consultant for any liability, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the coverage; nor shall it preclude the City from taking such other actions as are available to it under any other provision of this Agreement or otherwise in law.

3.6 Failure by Consultant to maintain all such insurance in effect at all times required by this Agreement shall be a material breach of this Agreement by Consultant. City , at its sole option, may terminate this Agreement and obtain damages from Consultant resulting from said breach. Alternatively, City may purchase such required insurance coverage, and without further notice to Consultant, City shall deduct from sums due to Consultant any premiums and associated costs advanced or paid by City for such insurance. If the balance of monies obligated to Consultant pursuant to this Agreement are insufficient to reimburse City for the premiums and any associated costs, Consultant agrees to reimburse City for the premiums and pay for all costs associated with the purchase of said insurance. Any failure by City to take this alternative action shall not relieve Consultant of its obligation to obtain and maintain the insurance coverages required by this Agreement.

3.7 Should any of the required insurance (other than errors and omissions insurance) be provided under a form of coverage that includes a general annual aggregate limit or provides that claims investigation or legal defenses

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costs be included in such general aggregate limit, such general annual aggregate limit shall be double the occurrence or claims limit specified above.

3.8 City may (but is under no obligation to) secure project -specific insurance, wrap- up insurance, or administer an owner controlled insurance program ("OCIP"), in which case Consultant and its subconsultants shall communicate this fact to their insurance carriers and request that the risk of this project be excluded from their practice policies. Consultant's fees under this Agreement (and the fee of its subconsultants under subconsultant agreements) shall be reduced by the amount of insurance premiums that may be avoided by Consultant and its subconsultants by virtue of the City's obtaining the project -specific insurance, wrap-up insurance or administering an OCIP, and the exclusion of this project from coverage of Consultant's and subconsultants policies. Construction Manager and its subconsultants shall afford City access to their books and records and cooperate with City in verifying the amount of savings realized.

ATTACHED

1. Insurance Coverage Form

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EXHIBIT C
This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work Date(s):

Description of Work/Locations/Vehicles:

ADDITIONAL INSURED: Ci
ty of Foster City (CITY)
610 Foster City Boulevard, Foster City, CA 94404
Attention: _________________________________
Contract Administrator
Endorsement and Certificates of Insurance Required
The Additional Insured, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (Check all that apply)
Insurer Policy
No.

General Liability : (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/or (d) permits issued for operations performed by the Named Insured. {Note:

MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}

Auto Liability : the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the Additional Insured, its elected or appointed officers, officials, employees or volunteers.

Other: [Cyber Liability, Installation Floater, etc.]
Certificates of Insurance Required (no endorsement needed) (Check all that apply)
Insurer Policy
No.

Workers Compensation : work performed by employees of the Named Insured while those employees are engaged in work under the simultaneous directions and control of the Named Insured and the Additional Insured.

Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds.

SEVERABILITY OF INTEREST: The i
nsurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS : Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers.

CANCELLATION NOTICE.

The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) days if canceled due to non-payment) by regular mail return receipt requested has been given to the Additional Insured. Such notice shall be addressed as shown above.

WAIVER OF SUBROGATION: The i nsurer(s) named above agree to waive all rights of subrogation against the CITY , its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the CITY.

Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated.

SI

GNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER

I, ______________________________________________________________(print/type name), warrant that I have authority to bind the above-named insurance company and by my signature hereon do so bind this company.

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SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required)

ORGANIZATION: TITLE:

ADDRESS:

TELEPHONE: ( ) DATE ISSUED:

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EXHIBIT D
COVID-19 AMENDMENT/ATTACHMENT
(Consulting Agreement Form)

This COVID-19 Amendment/Attachment amends the Agreement between ____________________ (“City”) and ____________________________ (“Consultant”) dated ___________________________.

1. Definitions
A. The 2019 novel coronavirus and the disease it causes are collectively referred to herein as “COVID-19”.

B . A “COVID-19 Condition” is something attributable to COVID-19 not caused by the Consultant (which for purposes herein includes all subconsultants) and beyond its reasonable control including but not limited to COVID-19 Proclamations and supply chain disruptions due to COVID-19, and other circumstances concerning COVID-19 not caused by the Consultant and which are beyond its reasonable control.

C. A “COVID-19 Proclamation” includes but is not limited to orders, directives and guidance concerning COVID-19 that have been issued, and which may be issued from time to time, by public agencies or regulatory bodies, the CDC or OSHA or Cal/OSHA, including without limitation the Cal/OSHA COVID-19 Prevention Emergency Temporary Standards. Consultant acknowledges that those orders, directives and guidance may require the Project to shut down or otherwise increase the Consultant’s cost or time of performance by calling for things such as social distancing and the use of personal protective equipment. In the event of conflicting COVID-19 Proclamations, the Consultant shall follow the most applicable, restrictive and newest COVID-19 Proclamations.

D. An “Unknown COVID-19 Condition” is a COVID-19 Condition the Consultant did not know about, and reasonably should not have known about, as of the date the Consultant submitted its proposal. The requirements contained in COVID-19 Proclamations issued before submission of a proposal are not Unknown COVID-19 Conditions, and the Consultant will be deemed to have knowledge of those requirements.

E. An “Unknown COVID-19 Cost” is a cost that: (i) is solely attributable to an Unknown COVID- 19 Condition; (ii) is reasonable and unavoidable under the circumstances; (iii) is not the result of the Consultant’s failure to comply with the contract documents or a COVID-19 Proclamation; and (iv) is not the result of a subconsultants failure to comply with a COVID-19 Proclamation in connection with the performance of the Services.

2. COVID-19 Conditions and Proposal. Consultant is expected to know and is deemed to have known about COVID-19 Conditions when it submits its proposal, and COVID-19 Conditions must be accounted for in the Consultant’s price and schedule. In order to be entitled to any relief from a COVID- 19 Condition, the Consultant must demonstrate that the issue, cost or delay is due to an Unknown COVID-19 Condition.

3. Compliance with COVID-19 Proclamations.

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A. Consultant shall comply with COVID-19 Proclamations in the performance of the Services, irrespective of when the COVID-19 Proclamations are issued, and as they pertains to performance of the Services. The cost of such compliance is non-compensable, except as otherwise expressly stated herein.

B. Consultant is responsible to ensure that its subconsultants and suppliers comply with COVID- 19 Proclamations at all times in connection with the performance of their Services.

4. Delay. The Consultant is entitled to a reasonable time extension for an Unknown COVID-19 Condition. Such time extension is non-compensable.

5. City Directed Suspension. The City may suspend Services due to COVID-19 health concerns, even though the Consultant may be allowed to proceed with the Services based on COVID-19 Proclamations. The City may suspend the Services for its convenience. The Consultant is entitled to a time extension for a City Directed Suspension, and the contract amount will be equitably adjusted if and to the extent Consultant incurs increased costs that are Unknown COVID-19 Costs.

6. Compensation for COVID-19 Costs. City will reimburse the Consultant for Unknown COVID-19 Costs that are not included in the schedule of values.

7. Safe Work Practices. Consultant shall implement safe work practices recommended by CDC or OSHA or Cal/OSHA, which may include, inter alia, screening all employees, subconsultants, or others (“worker(s)”) at all locations where Services are performed for signs and symptoms of COVID-19; adopting staggered work schedules, e.g., providing alternating workdays or extra shifts, to reduce the total number of employees on a site at any given time and to ensure physical distancing; identifying choke points where workers are forced to stand together, such as hallways and elevators, ingress and egress points, break areas, and buses, and implement policies to maintain social distancing; coordinating deliveries in line with the employer's minimal contact and cleaning protocols; and instituting a rigorous housekeeping program to reduce dust levels at all exterior locations. Consultant remains fully responsible for following and complying with changes to recommended safe work practices from time to time.

8. Monitoring and Reporting. City may require the Consultant to actively monitor the health of its workers through temperature checks and questionnaires of major COVID-19 symptoms, including but not limited to cough, fever above 100.4 degrees Fahrenheit and shortness of breath. Consultant shall immediately report to City any outbreaks of COVID-19 among its workers. The Consultant shall not knowingly allow any worker who has tested positive with COVID-19 to enter a City building. In the event of an outbreak or an exposure to COVID-19, the City may impose appropriate mitigation strategies which may be in consultation with the public health officer.

9. Conflicts. In the event of an inconsistency between this COVID-19 Amendment and the Agreement, this Addendum shall control.

[Signatures on Next Page]

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IN WITNESS WHEREOF, the City and Consultant have executed this Covid-19 Amendment as of the date set forth above.

CONSULTANT: CITY:

________________________ ____________________________
Signature Signature

________________________ ______________________________ Print Name & Title Print Name & Title

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DATE: June 5, 2023

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City/District Manager

FROM: Ramon Towne, Interim Public Works Director/City/District Engineer DEPARTMENT: Public Works
SUBJECT: PUBLIC HEARING AND RESOLUTIONS ESTABLISHING WATER RATES FOR FISCAL YEAR 2023-2024

RECOMMENDATION
It is recommended that the City Council of the City of Foster City (Council) and Board of Directors of the Estero Municipal Improvement District (EMID):

1. Open the Public Hearing to receive comments on proposed Water Rates for Fiscal Year 2023-2024; and

2.After considering the staff report and the public testimony and determining that a majority protest does not exist, adopt the attached resolutions amending the Master Fees and Service Charges Schedule establishing new Water Rates effective July 1, 2023.

EXECUTIVE SUMMARY
On March 27, 2023, the EMID Board held a Budget Study Session to consider an analysis by EMID's rate consultant, Bartle Wells Associates (BWA), of proposed water rates for FY 2023-2024. Pursuant to direction received from the EMID Board at that meeting, staff prepared a public hearing notice of the maximum new water rates to be adopted for FY 2023-2024.

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In conformance with Proposition 218, EMID mailed the public hearing notice with the proposed rates to all record property owners and customers of record on April 21, 2023.

BWA recommends that EMID implement a 4.3% volumetric rate increase and a 6.0% meter charge increase for Rate Year 2023-2024 Water Rates.

The proposed water rates provide adequate revenue for operations, capital expenditures and transfers, account for water loss, and maintain the operating fund balance at or above target levels. A significant driver for the proposed rate increases is to smooth EMID rate adjustments due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rates and to provide necessary revenue for the maintenance, operation and capital costs associated with the water distribution enterprise over a five-year term.

BACKGROUND
EMID provides water service to a population of approximately 36,500. Over 80% of all water accounts utilize the smallest meter size (3/4”) which is typically associated with single family residential accounts. There are approximately 8,247 total water accounts, including both water service and private fire protection service accounts.

Water bills are composed of a fixed monthly charge for water system availability that is based upon the size of water meter for domestic accounts and the line size for fire line accounts, plus a consumption charge calculated on the metered water use based on the cost of the water that is delivered to the account.

On March 27, 2023, the EMID Board held a Budget Study Session regarding water rates for FY 2023-2024. At the Budget Study Session, the EMID Board considered information developed by EMID's rate consultant, BWA. Based upon that analysis, the EMID Board directed staff to prepare a Proposition 218 notice for an adjustment of water rates for FY 2023-2024 per the consultant’s analysis. Pursuant to that direction and in conformance with Proposition 218, staff prepared a public hearing notice that included the proposed water rates. The EMID mailed the public hearing notice with the proposed rates on April 21, 2023. As required, this notice described the proposed increases to water rates for FY 2023-2024.

ANALYSIS
BWA recommends that EMID implement a 4.3% volumetric rate increase and a 6.0% meter charge increase for Rate Year 2023-2024 Water Rates.

The proposed rates will provide adequate revenue for operations, capital expenditures

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and transfers, account for water loss, and maintain the operating fund balance at or above target levels.
•Operational Costs: EMID’s projected operating expenditures are anticipated to increase over the next five years by 8.9%.
•Capital Funding: EMID’s strategy for funding long-term capital water improvements calls for a transfer of $1,120,000 per year from water operating revenues to the City’s Capital Improvement Fund over the next fifteen (15) years. •Conservation Costs: The rate model includes an allocation of $200,000 to the Water Sustainability Rebate Program for FY 2023-2024 to continue to support voluntary water conservation efforts. An additional $50,000 has been included in the FY 2023-2024 conservation budget which will be drawn from reserves typically collected from “tier 2” rates that are set aside for this purpose.

Table 3 from the BWA analysis (Exhibit A) provides a comparison of current water rates to proposed rates.

A significant driver for the proposed rate increases is to smooth EMID rate adjustments due to projected increases in the SFPUC wholesale water rates and to provide necessary revenue for the maintenance, operation and capital costs associated with the water distribution enterprise over a five-year term. SFPUC rates are identified to increase by 12% from $4.75 to $5.30/ccf for the next year.

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Additionally, for each unit of water purchased, the City pays a surcharge to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the $4.8 billion Hetch Hetchy Reservoir Water System Improvement Project (WSIP) The overall WSIP is at or near completion, however, SFPUC operating costs and debt service are projected to increase over the next five years.

The EMID Board has implemented a long-term rate smoothing model that takes into consideration long-range projections for wholesale water rates and significant capital improvements and maintains rate increases at no greater than 10% per year. The proposed FY 2023-2024 rates were prepared using a 15-year model, which has proven to be successful in dampening rate spikes.

Table 5 - Projected Water Rate Impacts provides projections for future rate impacts for single family ratepayers in FY 2023-2024 and into the future. However, only the rates for FY 2023-2024 are being adopted at this time.

Rate Survey
The consultant surveyed communities along the San Francisco Peninsula to compare EMID’s typical residential monthly water bill with neighboring communities. Since it is unknown what the comparator agencies are proposing for FY 2023-2024, EMID compared its FY 2022-2023 monthly residential water bills for a single-family customer using 6 ccf of water to the FY 2022-2023 rates for the neighboring agencies. For FY 2022- 2023, the average monthly water bill for the region is $83.35 per month. EMID’s average monthly water bill is $62.65, or approximately 25% less than the average and among the lowest on the Peninsula. The results of the survey are summarized in the BWA report on page 13 of Exhibit A.

Public Notice
Article XIII D, Section 3(a), added to the Constitution by Proposition 218, allows agencies to adopt property-related fees, like water rates, if they issue a notice of public hearing to all ratepayers no less than forty-five (45) days prior to the date of the public hearing.

Attachment 3 is the Mailing Transaction Receipt for the Notice of Public Hearing (Exhibit

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B) that was prepared and mailed out on April 21, 2023, to property owners of record and non-owner account holders for the 8,247 water accounts served by EMID. The rate notice establishes the highest rate that EMID is permitted to adopt at this Public Hearing. EMID may adopt rates lower than the rates included in the Proposition 218 public hearing notice, but it may not adopt rates higher than those in the public hearing notice.

Per the requirements of Proposition 218, if more than a majority of parcels receiving water services protest any proposed rate increase, the EMID Board may not move forward with implementing the increases. Ratepayers and property owners are required to submit written protests to the City Clerk/District Secretary. As of May 22, 2023, the City/District had received one (1) written protest. Protests may be made up to the close of the Public Hearing. A final number of protests will be reported at the EMID Board meeting, and if there is not a majority protest, then EMID may proceed with adopting the noticed rates.

Public Notices for this meeting were advertised in compliance with applicable State statutes and local ordinances. All ratepayers were notified of the proposed rate increases by mail. If the EMID Board approves the proposed rates, no further notices will be sent to ratepayers other than a note on the bills indicating that rates were approved effective July 1, 2023, and that more information can be found on the City/District’s website or by calling the City/District.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
•CEQA Guidelines Section 15273 – Rates, Tolls, Fares, and Charges •Exempt per General Rule, Section 15061 (b) (3)

FISCAL IMPACT
Proposed water rates for FY 2023-2024 will sufficiently cover the projected system expenditures while adhering to budget policy objectives established by the EMID Board related to enterprise funds. All fiscal impacts for the water system are borne by water system customers. There is no General Fund impact.

Staff prepared the attached resolutions to incorporate the rate changes into the Master Fees and Service Charge Schedule. The proposed rates are based upon the data that was reviewed by, and direction received from, the EMID Board at its March 27, 2023 meeting.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

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Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis Exhibit B - Prop 218 Notice for FY 2023-2024
Attachment 3 - Mailing Transaction Receipt

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8 5
5 RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ESTABLISHING WATER RATES FOR FISCAL YEAR 2023-2024

CITY OF FOSTER CITY
WHEREAS, on June 5, 2023, the City Council held a public hearing to consider changes to the Master Fees and Service Charges Schedule establishing water rates for Fiscal Year 2023-2024; and
WHEREAS, at its Budget Study Session held on March 27, 2023, the City Council reviewed detailed analyses of the City/District’s utility system operations, revenues, expenses and long-term capital improvement program; and WHEREAS, the City Council determined to use a Two-Tier Hybrid Rate Model for purposes of establishing water rates; and
WHEREAS, the City hired Bartle Wells Associates (“BWA”) to review the City’s water rates and make recommendations on rate increases for the next five years to reflect current costs of service and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water Rate Study dated March 15, 2023, (“Water Rate Study”), which recommends a revised water rate schedule for Fiscal Year 2023- 2024; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Water Rate Study and the Staff Report and attachments thereto:
1) Revenues derived from the proposed water rates will not exceed the funds required to provide water service.
(2) Revenues derived from the proposed water rates will not be used for any purpose other than that for which they were imposed.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
(4) The water rates are imposed for services that are actually used by, or immediately available to, the owner of the property in question. (5) The water rates are not being imposed for general government services; and WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing water rates, property owners shall be provided at least 45 days’ notice of a public hearing to

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8 5
5 consider such modifications to the rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and WHEREAS, Notice of the public hearing to consider proposed adjustments to the water rates, set forth in Exhibit B, was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and WHEREAS, On June 5, 2023, the City Council conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and
WHEREAS, the Water Rate Study indicates water service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, the referenced Exhibit A and Exhibit B incorporate the City Council and EMID Board’s policy direction received at the City Council meeting on March 27, 2023.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY HEREBY RESOLVES AS FOLLOWS:

1. The City Council hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

2. The City Council hereby finds that the water service charge rate increase is exempt from CEQA under the "General Rule", Section 15061 (b) (3), in that it can be seen with certainty that no environmental impacts will result from these actions, and under CEQA Guideline section 15273 as these actions apply only to rates and fees to obtain funds necessary to operate and maintain the water system.

3. The procedures followed and the water rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code section 53755, and Health and Safety Code section 5471.

4. The City Council adopts rates noticed in the referenced Exhibit B as the City Council’s new water service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2023-2024.

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5 5. The City Council accepts and approves the Water Rate Study in the referenced Exhibit A setting forth the basis for the water service charge rates.

The Water Rate Study establishes that the water rates do not exceed the City’s costs of service and that the rates are proportionately charged to each customer class.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 5
th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________

JON FROOMIN, MAYOR
ATTEST:
________________________________

PRISCILLA SCHAUS, CITY CLERK

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8 5
6 RESOLUTION NO. _________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING WATER RATES FOR FISCAL YEAR 2023-2024

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, on June 5, 2023, the District held a public hearing to consider changes to the Master Fees and Service Charges Schedule establishing water rates for Fiscal Year 2023-2024; and
WHEREAS, at its Budget Study Session held on March 27, 2023, the District Board reviewed detailed analyses of the District’s utility system operations, revenues, expenses and long-term capital improvement program; and WHEREAS, the District Board determined to use a Two-Tier Hybrid Rate Model for purposes of establishing water rates; and
WHEREAS, the District hired Bartle Wells Associates (“BWA”) to review the water rates and make recommendations on rate increases for the next five years to reflect current costs of service and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water Rate Study dated March 15, 2023, (“Water Rate Study”), which recommends a revised water rate schedule for Fiscal Year 2023- 2024; and
WHEREAS, the District Board finds and determines that, based on the entire record before the District Board, including but not limited to the Water Rate Study and the Staff Report and attachments thereto:
1) Revenues derived from the proposed water rates will not exceed the funds required to provide water service.
(2) Revenues derived from the proposed water rates will not be used for any purpose other than that for which they were imposed.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
(4) The water rates are imposed for services that are actually used by, or immediately available to, the owner of the property in question. (5) The water rates are not being imposed for general government services; and WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing water

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8 5
6 rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and WHEREAS, Notice of the public hearing to consider proposed adjustments to the water rates, set forth in Exhibit B, was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and WHEREAS, On June 5, 2023, the District Board conducted a public hearing, considered testimony, and at the conclusion of the hearing determined that a majority protest did not exist; and
WHEREAS, the Water Rate Study indicates water service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, the referenced Exhibit A and Exhibit B incorporate the City Council and EMID Board’s policy direction received at the District Board meeting on March 27, 2023.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE ESTERO
MUNICIPAL IMPROVEMENT DISTRICT HEREBY RESOLVES AS FOLLOWS:

1. The District Board hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

2. The District Board hereby finds that the water service charge rate increase is exempt from CEQA under the "General Rule", Section 15061 (b) (3), in that it can be seen with certainty that no environmental impacts will result from these actions, and under CEQA Guideline section 15273 as these actions apply only to rates and fees to obtain funds necessary to operate and maintain the water system.

3. The procedures followed and the water rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code section 53755, and Health and Safety Code section 5471.

4. The District Board adopts rates noticed in the referenced Exhibit B as the District Board’s new water service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2023-2024.

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6 5. The District Board accepts and approves the Water Rate Study in the referenced Exhibit A setting forth the basis for the water service charge rates.

The Water Rate Study establishes that the water rates do not exceed the City’s costs of service and that the rates are proportionately charged to each customer class.

PASSED AND ADOPTED as a resolution of the District Board of the Estero Municipal Improvement District at the regular meeting held on the 5 th day of June, 2023,
by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________

JON FROOMIN, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

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2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE:

TO:

March 15th, 2023
City of Foster City/Estero Municipal Improvement District Bartle Wells AssociatesFROM:

SUBJECT: Water and Wastewater Rate Study Update Results

SUMMARY OF FINDINGS AND RECOMMENDATIONS
Introduction and Background
The Estero Municipal Improvement District (District) engaged Bartle Wells Associates (BWA) to develop 10-year financial projections for the District’s Water and Wastewater Enterprises and to recommend water and wastewater rate adjustments for the next five- year period. BWA last conducted formal rate studies in 2022, which resulted in a one-year rate approval for water rates for FY 2023. No public hearing was held for wastewater, as the adopted wastewater rates were determined to be adequate.

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

Water
The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The rate increase is due to a variety of factors including growth in capital spending, continued low water usage due to drought and covid-19 recovery, and repayment of the balancing account.

SFPUC, the sole source of water supply for the District, released updated projections for their wholesale rate for the next five years (FY 2024 to FY 2028). SFPUC is projecting the current rate of $4.75 in FY 2023 per hundred cubic feet (ccf) will increase to $5.30 in FY 2024. The wholesale rate is projected to remain flat at $5.30 per ccf from FY 2024 to FY 2027, with a final increase to $5.54 in FY 2028.
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SFPUC rates were historically held level at $4.10/ccf for six years (FY 2017 to FY 2022) despite escalating SFPUC debt service and operating costs through use of a balancing account. The balancing account was built up from SFPUC wholesale water sales exceeding projections used in rate setting. In FY 2023, the wholesale rate was increased 15.9% to $4.75/ccf. The increase in the SFPUC wholesale rates was due to the balancing account fund balance reaching zero. SFPUC rates are projected to increase by 11.6% in FY 2024, 0% in FY 2025, 0% in FY 2026, and 0% in FY 2027 and 4.5% in FY 2028.

During the time that SFPUC wholesale rates were held flat by the balancing account, the District has been gradually increasing its volumetric rates in anticipation of projected wholesale rate increases by SFPUC. While the wholesale rate increases have come to fruition, the District’s rates have been phased to ensure sufficient revenues and avoid sharp increases based on a rate smoothing model.

The District will also continue to make annual payments, projected to be $594,012 in FY 2024, to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the WSIP capital improvements that were funded through the issuance of bonds. The water enterprise’s single largest cost is water purchases from SFPUC.

BWA proposed water rates are designed to maintain the operating fund above target levels (90 days operating expenses in reserves) and cover District operating and capital costs. Excluding water purchase and capital related costs, District operating costs are projected to increase by about 3% per year. Additionally, the District is projected to set aside $2,500,000 for capital improvements in FY 2024 and $1,120,000 each year thereafter. The capital improvement transfer amount is based on funding the District’s water master plan. Proposed water rates are based on 10% water loss, a reduction from 11% water loss used in the previous study. The amount of the losses is projected to decrease due to the District’s efforts to replace aging meters. That is, 90% of the water EMID purchases is sold to retail customers.

To maintain the operating reserves, fund the capital set aside, and phase in volumetric rates, BWA recommends the District implement a 4.3% volumetric rate increase and a 6% meter charge increase in FY 2024. The average bill for a single family home would increase by 4.8% or $3.63 per month.

Detailed water rate calculations are shown in APPENDIX C. 2 | P a g e

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Wastewater
The District has entered into a Joint Powers Agreement with the City of San Mateo where the District receives treatment of its wastewater via the San Mateo Wastewater Treatment Plant (WWTP). The District is responsible for its share of operating and maintenance costs that San Mateo (as the lead agency and the contracting party) incurs treating the District’s wastewater, as well as approximately 24% of the WWTP improvement costs incurred as part of the Clean Water Program (CWP), a 10-year comprehensive capital improvement project initiated in 2014. The Cities of San Mateo and Foster City (District) are expanding the jointly owned WWTP at an estimated cost of $670 MM with $152 MM of that falling under Foster City’s contributions. This is in addition to local capital projects for the District’s own wastewater collection system. The wastewater enterprise intends to fund collection system capital expenditures through annual transfers from the operating fund to the capital improvement fund.

In June 2020, to fund the anticipated costs of the WWTP CWP improvements, the District Board approved 5 years of wastewater rate increases: three 14.25% per increases in FY 2021 through FY 2023, a 10% wastewater rate increase in FY 2024, and a 2% increase in FY 2025. BWA’s 2023 analysis shows that the District has adequate financing capacity for projected debt issuances in the next several years and recommends spreading the remaining rate increases out over a longer period. BWA proposes reducing the 10% increase in FY 2024 to 3% and implementing the adopted 2% increase in FY 2025. BWA recommends conducting a 5-year rate study analysis in FY 2025, which would result in an adopted rate schedule for next 5 year period.

Detailed wastewater rate calculations are shown in APPENDIX E.

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

The water survey compares a median monthly water bill for 6 units of water which would be a common residential consumption. Including the recommended increase, the 3 | P a g e

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District’s median monthly water bill proposed for FY 2024 is $65.76. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2023 monthly residential water bills to the FY 2023 monthly residential water bills for the neighboring agencies. The survey indicates that the District’s water rates are among the lowest on the Peninsula. The average monthly water bill for the region based on 6 ccf is $83.35 per month and the District’s average monthly residential water bill is $62.65 per month, or about 25% less. Since the proposed increase is also less than the FY 2023 average, it is likely that EMID customers will continue to pay much lower than average water bills.

Including the recommended increase, the District’s proposed monthly wastewater bill for FY 2024 is $130.87. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2023 monthly residential wastewater bills to the FY 2023 monthly residential wastewater bills for the neighboring agencies. The survey indicates that the District’s current wastewater rates are above the average amongst its comparator agencies. The average monthly bill for the region is $106.09 and the District’s rate is $127.06 per month, or about 20% more.

APPENDIX F shows how the combined water and wastewater bills compare to regional agencies based on FY 2023 rates. The District’s total combined water and wastewater bill is $189.71 per month. The average monthly combined water and wastewater bill for the region is $189.63 per month or approximately the same. 4 | P a g e

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230

Water Enterprise Fund
The District currently provides water service to a population of approximately 36,500.

Most of the District’s customers are residential. Table 1 shows the approximately 8,247 accounts/meters that allow for water service and fire protection service.

Table 1
City of Foster City / Estero Municipal Improvement District Water Meters By Size
Data as of: 01/29/23
Meter Size Accounts Meter Ratio1,2 Est. Meter Equivalents3 Water Service
3/4"
1"
1-1/2"
2"
3"
4"
6"
6,825
453
169
379
89 1.00

1.67 4.00
6,825
755
676
2,021
1,038
1,197
1,353
1,520

5.33 11.67

21.00 46.67

80.00 57
29 198" or greater
Subtotal 8,020 15,385
Private Fire Protection Service
3/4"
1"
1-1/2"
2"
3"
4"
6"
1 7
3 0
2 35
96 83

1.40 1.40

1.40 1.87

4.08 7.35
1 10
4 0
8 257
1,568
2,324

16.33 28.008" or greater
Subtotal 227 4,172
Total 8,247 19,557
Source: Foster City/Estero Municipal Improvement District water use records [1] The meter ratios shall be based on meter size in compliance with ratios established by the American Water Works Association (AWWA) Sizing Water Service Lines and Meters M22, Second Edition, 2004 (M22 Manual)
[2] Private fire protection service ratio based on the fire s ervic e line; Resolution No. 2715 [3] Equals the number of accounts multiplied by the meter ratio for each meter size. 5 | P a g e

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231

Table 2 illustrates the current reserves that the District can draw down in case of emergency or to smooth any “rate shocks” to its customers. In recent years reserves were used as a buffer due to unexpected increases in system water losses.

The District is meeting its 90-day operating fund reserve target in FY 2023 (estimated to be $4.18 million.) The target is based on the District’s long standing reserve policy and is an industry standard minimum target to maintain adequate short term liquidity in case of emergencies.

Table 2
City of Foster City / Estero Municipal Improvement District Water Enterprise Operating Reserves
July 1, 2022
Fund Reserve Component Reserve Balance
Reserved for Maintenance & Operation (401)
Total
$8,761,676
$8,761,676
Note: Rate model only includes fund reserve components available to fund ongoing operating expenditures.

Source: City of Foster City/Estero Municipal Improvement District Staff The wholesale water purchase rates that SFPUC is projecting through FY 2028 are shown graphically in CHART A. The SFPUC rates are projected to increase from $4.75/ccf in FY 2023 to $5.54/ccf in FY 2028.
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CHART A
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Table 3 summarizes the District’s projected operating expenditures which are anticipated to increase over the next five years by about 8.9%.

Table 3
City of Foster City / Estero Municipal Improvement District Water Enterprise O&M Projection
Revised
Budget
FY2023
Five Year Projection Annual %
Increase [1]Expenditures
FY2024
2,591,329
1,010,581
510,436
FY2025 FY2026
2,802,781
1,061,742
536,277
FY2027
2,914,893
1,088,285
549,684
FY2028
3,031,488
1,115,492
563,426
Employee Services 2,631,141
952,510
510,436
706,362
10,246,000
645,785
1,255,133
200,000
5,500
2,694,982
1,035,846
523,197

4.0%

2.5%

2.5%

2.5%
varies
Internal Services - Others
Internal Services - ERF
Services & Supplies
SFPUC Water Purchases
BAWSCA Bond Repayment
Reallocation [2]
750,362 769,121 788,349 808,058 828,259
10,289,000 10,326,000 10,363,000
594,012
10,400,000
594,012
10,907,000
594,012594,012
1,288,230
200,000
594,012
1,320,436
200,000
15,000
1,353,447
200,000
1,387,283
200,000
1,421,965
200,000

2.5%

2.5%
Water Sustainability
Capital Outlay/Vehicles 600,000 15,375 15,759 16,153
TOTAL O&M Expenditures 17,152,867 17,833,950 17,478,593 17,714,983 17,957,974 18,677,796

4.0% -2.0% 1.4% 1.4% 4.0%
[1] Based on City/District Staff direction
[2] Costs allocated to the Water Enterprise from other departments based on the City's cost allocation study. 8 | P a g e

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Table 4 summarizes the current water rates. The District has variable expenditures which are expenditures that are impacted by the amount of water its customers consume. These costs must be recouped via its volumetric water charge, $6.10 per ccf in FY 2023. Likewise, the District’s meter charges recover fixed expenditures, expenditures that are fixed regardless of amount of water that is consumed, $26.05 for a ¾” meter in FY 2023.

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

Conservation costs of $200,000 per year are allocated to each customer class based on their percentage of total usage. Residential and irrigation customers pay conservation costs on Tier 2 usage only, while commercial customers pay their share of conservation costs on each unit of water usage.

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

APPENDIX A shows the District’s historical water use trends from the prior year. The recent trend has been a decrease in irrigation usage and residential usage, and an increase in commercial usage. BWA’s proposed rates are designed to match volumetric expenses (such as water purchases) with volumetric revenue. The rate structure mitigates over or under collecting revenue due to fluctuations in water use.
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Table 4
City of Foster City / Estero Municipal Improvement District Current Rates
Current Rates
Fixed Meter Charge
2023
Monthly Meter Charge
Meter Size
3/4"
1"
$26.05
$43.42
1-1/2"
2"
3"
4"
$104.20
$138.93
$303.92
$547.05
6" $1,215.67
$2,084.008" or greater
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf
Tier 2 Over 20 ccf
$6.10
$6.64
Multi-Family Residential
Tier 1 0-10 ccf per living unit
Tier 2 Over 10 ccf per living unit
$6.10
$6.68
Irrigation Customers
Tier 1 <=100% of annual budget
Tier 2 >100% of annual budget
$6.10
$6.70
Commercial and Fire Line
All usage $6.21
Monthly Private Fire Protection Charge
Meter Size
3/4"
1"
$36.47
$36.47
1-1/2" $36.47
2" $48.71
3"
4"
6"
$106.28
$191.47
$425.40
$729.408" or greater
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Low Income Discount
Currently Foster City has 13 customers enrolled in the Water/Wastewater Rate Assistance Program (WWRAP), which was implemented in 2020. Customers meeting the eligibility and qualification requirements below are granted a discount of up to $15 per month each on their qualifying Water and Wastewater accounts, not to exceed a $30 per month discount per customer. To be eligible for the WWRAP, customers must show that they qualify for the PG&E CARE Program or other public assistance program or submit proof of income eligibility.

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

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

The estimated maximum potential cost of a $30/month discount for 227 customers amounts to $82,000 per year. Since the low income discount revenue sources cannot be funded with rates, rates are unaffected by the decision on the terms of the program and hence are not required to be included in the Proposition 218 notification. 11 | P a g e

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APPENDIX A
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APPENDIX B
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APPENDIX C
Table 1
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Five Year Projection
2026
Extended Year Projection
2030 2031 2032Fiscal Year Ending June 30
Assumptions:
2023 2024 2025 2027 2028 2029 2033
Interest Earnings Rate
Revenue Increase from Growth [1]
Fixed Charge
Fixed Rate Adjustment
SFR Variable Charge
Variable Rate Adjustment
Monthly Service Charge Single Family (8 ccf)
Rate Adjustment

0.50%

0.00%
$26.05

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

0.37%
$37.65

4.0%
$7.59

0.8%

2.00% 2.00%

0.37%
$40.70

4.0%
$7.70

0.7%

2.00%

0.37%
$27.60

6.0%
$6.36

4.3%

0.37%
$29.25

6.0%
$6.62

4.1%

0.37%
$31.00

6.0%
$6.89

4.1%

0.37%
$32.85

6.0%
$7.18

4.2%

0.37%
$34.80

5.9%
$7.48

4.2%

0.37%
$36.20

4.0%
$7.53

0.7%

0.37%
$39.15

4.0%
$7.65

0.8%

0.37%
$42.35

4.1%
$7.74

0.5%
$6.10
$74.85 $78.48

4.8%
$82.21

4.8%
$86.12

4.8%
$90.29

4.8%
$94.64

4.8%
$96.44

1.9%
$98.37

2.0%
$100.35

2.0%
$102.30

1.9%
$104.27

1.9%
Beginning Fund Balance $8,761,676 $6,329,000 $5,275,100 $5,477,500 $6,406,500 $8,137,500 $10,256,700 $12,327,700 $14,363,700 $16,371,700 $18,313,700 Revenues
Water Sales & Service Charges
Meter Charge Revenue Estimate
Volumetric Revenue Estimate
Connection Fees [1]
Interest Earnings - Operating Reserve [2]
Other
6,114,000 6,501,000 6,915,000 7,356,000 7,823,000 8,318,000 8,684,000 9,065,000 9,460,000 9,871,000 10,309,000 10,725,000 11,222,000 11,730,000 12,248,000 12,808,000 13,386,000 13,515,000 13,660,000 13,820,000 13,947,000 14,059,000 336,949
44,000
0 50,000
127,000
0 50,000
106,000
0 50,000
110,000
0 50,000
128,000
0 50,000
163,000
0 50,000
205,000
0 50,000
247,000
0 50,000
287,000
0 50,000
327,000
0 50,000
366,000
0 Operating Revenues 17,219,949 17,900,000 18,801,000 19,764,000 20,809,000 21,917,000 22,454,000 23,022,000 23,617,000 24,195,000 24,784,000 Expenses
Employee Services
Internal Services - Others
Internal Services - ERF
Services & Supplies
SFPUC Water Purchases
BAWSCA Bond Repayment
Reallocation
2,631,141
952,510
510,436
706,362
2,591,329
1,010,581
510,436
2,694,982
1,035,846
523,197
2,802,781
1,061,742
536,277
2,914,893
1,088,285
549,684
3,031,488
1,115,492
563,426
3,153,000
1,143,000
578,000
3,279,000
1,172,000
592,000
3,410,000
1,201,000
607,000
3,546,000
1,231,000
622,000
3,688,000
1,262,000
638,000
750,362 769,121 788,349 808,058 828,259 849,000 870,000 892,000 914,000 937,000 10,246,000 10,289,000 10,326,000 10,363,000 10,400,000 10,907,000 11,271,000 11,648,000 12,037,000 12,440,000 12,855,000 645,785
1,255,133
5,500
594,012
1,288,230
600,000
594,012
1,320,436
15,000
594,012
1,353,447
15,375
594,012
1,387,283
15,759
594,012
1,421,965
16,153
594,012
1,458,000
17,000
594,012
1,494,000
17,000
594,012
1,531,000
17,000
594,012
1,569,000
17,000
594,012
1,608,000
17,000Capital Outlay / Vehicles
Operating Expenses 16,952,867 17,633,950 17,278,593 17,514,983 17,757,974 18,477,796 19,063,012 19,666,012 20,289,012 20,933,012 21,599,012 Operating Net Revenues 267,082 266,050 1,522,407 2,249,017 3,051,026 3,439,204 3,390,988 3,355,988 3,327,988 3,261,988 3,184,988 Water Sustainability Fund Transfer
Capital Improvement Transfer [3]
200,000
2,500,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
Total Expenses 19,652,867 18,953,950 18,598,593 18,834,983 19,077,974 19,797,796 20,383,012 20,986,012 21,609,012 22,253,012 22,919,012 Revenues Less O&M Expenses
Revenues Less Total Expenses
Ending Fund Balance
267,082 266,050 1,522,407
202,407
2,249,017
929,017
3,051,026
1,731,026
3,439,204
2,119,204
3,390,988
2,070,988
3,355,988
2,035,988
3,327,988
2,007,988
3,261,988
1,941,988
3,184,988
1,864,988(2,432,918) (1,053,950)
6,328,758 5,275,050 5,477,507 6,406,517 8,137,526 10,256,704 12,327,688 14,363,688 16,371,688 18,313,688 20,178,688 Revenue Test: Annual Revenues > O&M Expenses
Annual Revenues Less O&M Expenses
Pass/fail
267,082
PASS
266,050
PASS
1,522,407
PASS
2,249,017
PASS
3,051,026
PASS
3,439,204
PASS
3,390,988
PASS
3,355,988
PASS
3,327,988
PASS
3,261,988
PASS
3,184,988
PASS
Fund Reserve Test: Minimum Fund Balance > 25% O&M Expenses Year-end fund balance
25% operating expenses
# of Days O&M in Reserves
Pass/fail
6,328,758
4,180,000
136
5,275,050
4,350,000
109
5,477,507
4,260,000
116
6,406,517
4,320,000
134
8,137,526 10,256,704 12,327,688 14,363,688 16,371,688 18,313,688 20,178,688 4,380,000
167
4,560,000
203
4,700,000
236
4,850,000
267
5,000,000
295
5,160,000
319
5,330,000
341

PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS
[1] Estimated for planning purposes
[2] Calculated as 2% of the Beginning Fund Balance of the Water Revenue Fund [3] Capital Improvements are funded through the Long-Term Capital Improvement Project Fund 14 | P a g e

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Table 2
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
Five Year Projection
2026
Extended Year Projection
2031Fiscal Year Ending June 30 2023 2024 2025 2027 2028 2029 2030 2032 2033 Fixed Meter Charge Increase
Fixed Revenues +/- 5% of Fixed Costs?

6.00%
YES

6.00%
YES

6.00%
YES

6.00%
YES

6.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES
Reserves % Above (Below) Reserve Target
Reserve Target Met?
121.3%
YES
128.6%
YES
148.3%
YES
185.8%
YES
224.9%
YES
262.3%
YES
296.2%
YES
327.4%
YES
354.9%
YES
378.6%
YES
Revenue Estimates
Meter Charge Revenue
Other Fixed Revenue
Volumetric Revenue
Total Projected
$
$
$
6,114,000
380,949
10,725,000
17,219,949
$
$
$
6,501,000
177,000
11,213,000
17,891,000
$
$
$
6,915,000
156,000
11,728,000
18,799,000
$
$
$
7,356,000
160,000
12,239,000
19,755,000
$
$
$
7,823,000
178,000
12,807,000
20,808,000
$
$
$
8,318,000
213,000
13,386,000
21,917,000
$
$
$
8,684,000
255,000
13,520,000
22,459,000
$
$
$
9,065,000
297,000
13,654,000
23,016,000
$
$
$
9,460,000
337,000
13,833,000
23,630,000
$
$
$
9,871,000
377,000
13,951,000
24,199,000
$
$
$
$
10,309,000
416,000
14,052,000
24,777,000$ $ $ $ $ $ $ $ $ $
Total Projected Revenue (Rounded '000's) $ 17,220,000 $ 17,891,000 $ 18,799,000 $ 19,755,000 $ 20,808,000 $ 21,917,000 $ 22,459,000 $ 23,016,000 $ 23,630,000 $ 24,199,000 $ 24,777,000 $17,219,949 $17,900,000 $18,801,000 $19,764,000 $20,809,000 $21,917,000 $22,454,000 $23,022,000 $23,617,000 $24,195,000 $24,784,000 Revenue Allocation
Fixed
Variable

37.7%

62.3%

37.3%

62.7%

37.6%

62.4%

38.0%

62.0%

38.5%

61.5%

38.9%

61.1%

39.8%

60.2%

40.7%

59.3%

41.5%

58.5%

42.3%

57.7%

43.3%

56.7%
Costs Estimates
Fixed Costs [1]
Variable Costs [2]
Total Projected Costs
$8,561,082
$11,091,785
$19,652,867
$7,870,938
$11,083,012
$18,953,950
$7,478,581
$11,120,012
$18,598,593
$7,677,971
$11,157,012
$18,834,983
$7,883,962
$11,194,012
$19,077,974
$8,096,784
$11,701,012
$19,797,796
$8,318,000
$12,065,012
$20,383,012
$8,544,000
$12,442,012
$20,986,012
$8,778,000
$12,831,012
$21,609,012
$9,019,000
$13,234,012
$22,253,012
$9,270,000
$13,649,012
$22,919,012
Net Revenue
Fixed Charges
Volumetric Charges
Total
-$2,066,133
-$366,785
-$2,432,918
-$1,192,938
$129,988
-$1,062,950
-$407,581
$607,988
$200,407
-$161,971
$1,081,988
$920,017
$117,038
$1,612,988
$1,730,026
$434,216
$1,684,988
$2,119,204
$621,000
$1,454,988
$2,075,988
$818,000
$1,211,988
$2,029,988
$1,019,000
$1,001,988
$2,020,988
$1,229,000
$716,988
$1,945,988
$1,455,000
$402,988
$1,857,988
Cost Analysis
Fixed
Variable

43.6%

56.4%

41.5%

58.5%

40.2%

59.8%

40.8%

59.2%

41.3%

58.7%

40.9%

59.1%

40.8%

59.2%

40.7%

59.3%

40.6%

59.4%

40.5%

59.5%

40.4%

59.6%
Meter Charge Calculation
Monthly charge per meter equivalent
(Rounded to nearest $0.05)
Annual charge per meter equivalent
Meter equivalents [3]
$ 26.05 $ 27.60 $ 29.25 $ 31.00 $ 32.85 $ 34.80 $ 36.20 $ 37.65 $ 39.15 $ 40.70 $ 42.35 $ 312.60
19,557
$ 331.20
19,629
$ 351.00
19,701
$ 372.00
19,773
$ 394.20
19,845
$ 417.60
19,918
$ 434.40
19,991
$ 451.80
20,064
$ 469.80
20,137
$ 488.40
20,211
$ 508.20
20,285
Meter Charge Revenue Estimate $ 6,114,000 $ 6,501,000 $ 6,915,000 $ 7,356,000 $ 7,823,000 $ 8,318,000 $ 8,684,000 $ 9,065,000 $ 9,460,000 $ 9,871,000 $ 10,309,000 Volumetric Rate Calculation
EMID Proposed Uniform Rate
Projected annual water sales (ccf) [4]
Variable revenue estimate
$6.21
1,727,000
$ 6.47
1,733,000
$ 6.74
1,740,000
$ 7.01
1,746,000
$ 7.31
1,752,000
$ 7.61
1,759,000
$ 7.66
1,765,000
$ 7.71
1,771,000
$ 7.78
1,778,000
$ 7.82
1,784,000
$ 7.85
1,790,000
$10,725,000 $11,213,000 $11,728,000 $12,239,000 $12,807,000 $13,386,000 $13,520,000 $13,654,000 $13,833,000 $13,951,000 $14,052,000 % Spread between EMID and SFPUC
Surcharge

SFPUC PROJECTED RATES
Increase (Decrease) %

30.7%
$4.75

22.1%
$5.30

11.6%

27.2%
$5.30

0.0%

32.3%
$5.30

0.0%

37.9%
$5.30

0.0%

37.4%
$5.54

4.5%

34.2%
$5.71

3.0%

31.2%
$5.88

3.0%

28.5%
$6.05

3.0%

25.4%
$6.24

3.0%

22.2%
$6.42

3.0%
BAWSCA Surcharge $0.31
$5.06
$0.31
$5.61
$0.31
$5.61
$0.31
$5.61
$0.31
$5.61
$0.31
$5.85
$0.31
$6.02
$0.31
$6.19
$0.31
$6.36
$0.31
$6.55
$0.31
$6.73SFPUC Rate + BAWSCA Surcharge
EMID Fixed Meter Charge Increase (Decrease)
EMID Volumetric Rate Increase (Decrease)

6.0%

4.2%

6.0%

4.2%

6.0%

4.0%

6.0%

4.3%

5.9%

4.1%

4.0%

0.7%

4.0%

0.7%

4.0%

0.9%

4.0%

0.5%

4.1%

0.4%
Note:
[1] Includes: Employee Services, Internal Services - Other, Internal Services - ERF, Services & Supplies, Reallocation, Capital Outlay, Capital Improvement Fund Transfers, Debt Service, and net revenues for the operating fund. [2] Includes: SFPUC Water Purchases, BAWSCA Bond Repayment, and Water Sustainability Fund Transfers. [3] 0.37% growth estimated for planning purposes
[4] Includes 10% water loss factor
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Table 3
City of Foster City / Estero Municipal Improvement District Proposed Water Rates - Two Tier Hybrid Model
Current

TWO TIER HYBRID MODEL
Recommended Rates Rates FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 Monthly Meter Charge
3/4"
1"
$26.05

43.42 $27.60

46.00 $29.25

48.75 $31.00

51.67 $32.85

54.75 $34.80

58.00 $36.20

60.33 $37.65

62.75 $39.15

65.25 $40.70

67.83 $42.35

70.58 1-1/2"
2"
3"
4"
104.20
138.93
303.92
547.05
110.40
147.20
322.00
579.60
117.00
156.00
341.25
614.25
124.00
165.33
361.67
651.00
131.40
175.20
383.25
689.85
139.20
185.60
406.00
730.80
144.80
193.07
422.33
760.20
150.60
200.80
439.25
790.65
156.60
208.80
456.75
822.15
162.80
217.07
474.83
854.70
169.40
225.87
494.08
889.35
6" 1,215.67 1,288.00 1,365.00 1,446.67 1,533.00 1,624.00 1,689.33 1,757.00 1,827.00 1,899.33 1,976.33 2,084.00 2,208.00 2,340.00 2,480.00 2,628.00 2,784.00 2,896.00 3,012.00 3,132.00 3,256.00 3,388.008" or greater Conservation-Based Water Rate Model (based on bi-monthly allotments) Single Family Residential
Tier 1 0-20 per ccf
Tier 2 Over 20 ccf

6.10 6.64

6.36 7.01

6.62 7.30

6.89 7.59

7.18 7.91

7.48 8.21

7.53 8.24

7.59 8.28

7.65 8.33

7.70 8.36

7.74 8.38
Multi-Family Residential (per living unit)
Tier 1 0-10 ccf per living unit
Tier 2 Over 10 ccf per living unit
Irrigation Customers

6.10 6.68

6.36 7.09

6.62 7.38

6.89 7.68

7.18 8.00

7.48 8.30

7.53 8.33

7.59 8.37

7.65 8.42

7.70 8.44

7.74 8.46
Tier 1 <=100% of annual budget
Tier 2 >100% of annual budget
Commercial and Fire Line Customers
Base Consumption Rate

6.10 6.70

6.36 7.22

6.62 7.52

6.89 7.82

7.18 8.14

7.48 8.44

7.53 8.47

7.59 8.50

7.65 8.55

7.70 8.57

7.74 8.59

6.21 6.47 6.74 7.01 7.31 7.61 7.66 7.71 7.78 7.82 7.85
Monthly Fire Meter Charge
3/4"
1"

36.47 36.47

38.64 38.64

40.95 40.95

43.40 43.40

45.99 45.99

48.72 48.72

50.68 50.68

52.71 52.71

54.81 54.81

56.98 56.98

59.29 59.29
1-1/2" 36.47 38.64 40.95 43.40 45.99 48.72 50.68 52.71 54.81 56.98 59.29 2" 48.71 51.61 54.70 57.97 61.43 65.08 67.69 70.41 73.21 76.11 79.19 3"
4"
6"
106.28
191.47
425.40
729.40
112.61
202.86
450.71
772.80
119.34
214.99
477.65
819.00
126.48
227.85
506.23
868.00
134.03
241.45
536.44
919.80
141.98
255.78
568.28
147.70
266.07
591.15
153.61
276.73
614.82
159.73
287.75
639.32
166.06
299.15
664.63
172.79
311.27
691.58
8" or greater 974.40 1,013.60 1,054.20 1,096.20 1,139.60 1,185.80 (Minimum charge is equivalent to 1-1/2" meter charge)
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Table 4
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
Rates
FY2024
Two Tier Hybrid Model
Monthly meter charge
% Change
$26.05 $27.60

6.0%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf
Tier 2: over 20 ccf
$6.10
$6.64
$6.36
$7.01
Water Monthly
Use Level Use (ccf) Monthly Bill
Low Use r
$ Increase
% Increase
5 $56.55
$62.65
$74.85
$87.05
$148.05
$347.25
$59.40

2.85 5.0%
Median Use r
$ Increase
% Increase
6 $65.76

3.11 5.0%
Average Use r
$ Increase
% Increase
8 $78.48

3.63 4.8%
High Use r
$ Increase
% Increase
10 20
50 $91.20

4.15 4.8%
Very High Use r
$ Increase
% Increase
$161.30

13.25 8.9%
Ex ce ssive Use r
$ Increase
$371.60

24.35 % Increase 7.0%
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Table 5
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current Fiscal Year Ending June 30
2025 2026 2027
Extended Year ProjectionProjected Water Bills
2023 2024 2028 2029 2030 2031 2032 2033
Two Tier Hybrid Model
Single Family Residential Monthly Rate $74.85 $78.48 $82.21 $86.12 $90.29 $94.64 $96.44 $98.37 $100.35 $102.30 $104.27 $ Increase
% Increase

3.63 3.73 3.91 4.17 4.35 1.80

1.9%

1.93 2.0%

1.98 2.0%

1.95 1.9%

1.97 1.9%4.8% 4.8% 4.8% 4.8% 4.8%
Based on Single Family Residential Use of 8 ccf
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Wastewater Enterprise Fund
There are approximately 13,966 wastewater accounts serviced by the District. The majority of accounts are residential with the remainder consist of commercial and institutional accounts as shown in Table 1.

Table 1
Foster City / Estero Municipal Improvement District
Wastewater Service Accounts
Data as of: 02/01/22
Customer Class Number of Accounts
Residential
Single Family
Townhouse/Duplex
4,535
2,277
Apartment/Condominium (Pools w/ Restrooms)
Residential Total
6,906
13,718
Commercial
Restaurants 42
Commercial/Hotels/Offices/Industrial/Laundromats 171
Commercial Total 213
Institutional
Institutional/Schools 35
35Insitutional Total
Total 13,966
Source: Cognos Sewer Customer Count Report
The District has approximately $22,698,115 in its wastewater maintenance and operations reserve fund as shown in Table 2. The District’s minimum operating reserve target is 25% of operating and maintenance expenses (est. to be about $2.3 million). 19 | P a g e

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Table 2
Foster City / Estero Municipal Improvement District
Wastewater Operating Fund Reserves
July 1, 2022
BalanceFund Reserve Component
Reserved for Maintenance & Operation
Total
$22,698,115
$22,698,115
Note: Rate model only includes fund reserve components available to fund ongoing operating and capital expenditures.

Source: City of Foster City/Estero Municipal Improvement District Staff Table 3 summarizes the current wastewater service rates.

Table 3
Foster City / Estero Municipal Improvement District
Current Wastewater Rates
Current
Fiscal Year Ending June 30 2023
Residential (flat monthly rate)
Single Family
Townhouse/Duplex
$127.06
106.73
106.73Apartment/Condominium (Pools w/ Restrooms)
Commercial (rate per ccf of water use)
Restaurants
Commercial/Hotels/Offices/Industrial/Laundromats

23.09 8.12
Institutional (rate per ccf of water use)
Institutional/Schools 5.34
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Table 4 summarizes the operating expenditures of the enterprise. Costs are expected to remain relatively stable over the next five years.

Projected operating expenditures are anticipated to increase over the next five years by about 30%.

Table 4
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise O&M Projection
Revised
Budget
FY2023
Five Year Projection Annual %
Increase [1]Expenditures
FY2024 FY2025 FY2026
$3,070,348
1,226,974
279,598
FY2027
$3,193,162
1,257,648
286,588
FY2028
$3,320,888
1,289,089
293,753
Employee Services $2,883,682 $2,838,710 $2,952,258
1,197,048
272,779

4.0%

2.5%

2.5%

2.5%
N/A
Internal Services (from City)
Internal Services -ERF
Services & Supplies
EMID Share WWTP O&M
Reallocation [2]
1,116,826
266,126
661,550
3,400,000
894,301
1,167,852
266,126
733,550
3,700,000
976,739
751,889 770,686 789,953 809,702
3,700,000
1,001,157
4,000,000
1,026,186
4,200,000
1,051,841
5,200,000
1,078,137 2.5%
TOTAL O&M Expenditures $9,222,485 $9,682,977 $9,875,131 $10,373,792 $10,779,192 $11,991,569

5.0% 2.0% 5.0% 3.9% 11.2%
[1] Based on historical results
[2] Costs allocated to the Wastewater Enterprise from other departments based on the City's cost allocation study. 21 | P a g e

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Wastewater Financial Projections
Wastewater projections are shown in APPENDIX E.

San Mateo-Foster City Public Financing Authority:

Projections anticipate $60.65 million of debt issuances between FY 2023 and FY 2024 ($27.6 MM of WIFIA proceeds and $33 MM of SRF loans) to fund WWTP expansion costs. BWA projects that the approved rate increases are adequate to secure projected debt issuances over the next several years.

Table 5 shows debt service estimates for the District’s share of WWTP costs. Annual debt service for the combined total debt issuances is estimated to amount to $5.96 MM by FY 2026.

Table 5
City of Foster City / Estero Municipal Improvement District Debt Service Estimates
Debt Service
2020 WIFIA Loan
2019 Bonds
2023 SRF Loan/Bonds
Total Debt Service
FY 2023
$0
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 $298,110 $2,269,977 $2,616,824 $2,616,839 $2,616,857 $2,616,878 $2,616,901 $2,616,928 $2,616,958 2,084,250 2,085,000 2,084,250 2,086,875 2,087,750 2,086,875 2,084,250 2,084,750 2,088,125 2,084,375 134,332 1,259,604 1,259,573 1,259,540 1,259,508 1,259,475 1,259,443 1,259,4100 0 $2,084,250 $2,383,110 $4,488,559 $5,963,303 $5,964,162 $5,963,273 $5,960,636 $5,961,127 $5,964,496 $5,960,742 22 | P a g e

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

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

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

Table 6
City of Foster City/Estero Municipal Improvement District Strength Classifications into Low, Medium/Domestic, and High Strength Dischargers Low Strength Banks & Financial Institutions
Barber Shops/Hair Salons (hair cutting only)
Post Offices/Government
Retail Stores
Libraries
Schools
Churches, Halls & Lodges
Parking Garages
Warehouses
Medium/Commercial/
Domestic Strength
Residential - All
Appliance Repair
Beauty Shops (hair cutting w/additional treatments)
Dry Cleaners
Nail Salons
Pet Groomers
Commercial Laundromats
Bars & Taverns
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Tasting Rooms
Hospitals - General, Convalescent & Veterinarian
Hotels, Motels, B&Bs, and Vacation Rentals
Offices - Business and Professional
Offices - Medical/Dental
Pools with Restrooms (Clubhouse)
Theaters
Car Washes
High Tech Medical Manufacturing
Light Manufacturing/Industrial
Gym or Health Club
Machine Shops
Service Stations, Garages, Auto Repair Shops
Mini Marts - W/O Dish Washer or Garbage Disposal
Mini Mart with Gas Pumps - W/O Dish Washer or Garbage Disposal Spa with Various Beauty Treatments
High Strength Restaurants
Coffee Shops
Ice Cream Parlors
Catering
Eatery
Bakeries
Butcher Shops
Fish Market/Shop
Markets - with Dish Washer or Garbage
Disposal
Markets - with Bakeries or Butcher Shops
Mini Marts - with Dish Washer or Garbage Disposal
Wineries
Market
Dairies (milk producers, yogurt, ice cream maker)
Specialty Foods Manufacturing (e.g., cheese or olive oil maker) Note: Wastewater users who have Fats, Oils, and Grease (FOG) waste will be put into the High Strength user category
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Table 7 summarizes the assumed wastewater strength factors for the low, medium and high strength groups that are based on typical strengths provided in the SWRCB’s Revenue Program Guidelines. The strength factor for medium strength customers is equivalent to residential or “domestic” strength, of 1.00. The strength factor for low strength is calculated at 0.66 and for high strength is calculated at 2.85 based on the SWRCB guidelines.

Table 7
City of Foster City/Estero Municipal Improvement District Assumed Wastewater Strength Factors
Strength Class
Examples:

LOW LOW-MEDIUM MEDIUM HIGH
Institutional Townhouse, Duplex, Residential Restaurant Bank Apartment, Condo Offices Bakery
Flow (gpd)
BOD1 (mg/l)
TSS2 (mg/l)
200
135
100
168
240
240
200
240
240
200
1000
800
Strength Factor 0.66 0.84 1.00 2.85
Strength Factor Formula SF=(Flow(gpd)/200)*(0.33+(0.34*BOD(mg/l)/240)+(0.33*TSS(mg/l)/240)) WW flows and strengths based on State Water Resources Control Board's Revenue Program Guidelines 1 "BOD" stands for Biochemical Oxygen Demand
2 "TSS" stands for Total Suspended Solids
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Table 8 summarizes the mass-balance analysis for the City’s wastewater system and calculates the wastewater rates for each customer class. Single family residences are assumed to have an average daily (dry weather) flow of 200 gallons per day (gpd). The flow estimate is based on the State Water Resources Control Board Revenue Program Guidelines Table G-1, which estimates flow in gallons per day per person for residential dwelling units to be up to 75 gallons.

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

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

The results agree well with the estimated daily flow at 2.61 million gallons per day (mgd) and the measured flow at 2.37 mgd.
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Table 8
City of Foster City/Estero Municipal Improvement District Summary of Wastewater Users by Customer Class
FY 2023 Estimate
EDU x FlowCustomer Class Calculated
EDUs1 ADWF Flow
(gal/day)
ADWF Flow
(gal/day)
BOD3
(mg/l)
TSS4
(mg/l)
Current
Rate
Residential
Single Family Residential
Townhouse/Duplex
Apartment/Condos
4,535
2,277
6,906
200
168
168
907,000
382,536
1,160,208
240
240
240
240
240
240
127.06
106.73
106.73
Subtotal 2,449,744
Use
Accounts (gal/day) Flow Factor
Estimated Calculated
ADWF Flow
(gal/day)
26,426
BOD3
(mg/l)
135
240
1000
TSS4
(mg/l)
100
Current
RateCommercial
Low Strength
Medium/Domestic Strength
High Strength
35 171
42 40,655
198,866
48,957
65%
52%
70%

5.34 8.12

23.09 103,329
34,270
240
800
Subtotal 288,478 164,024
2,613,768
2,367,806
Totals
Check Against Lowest Actual Monthly Avg. Day Flow (May 2014 from LS 59 Flow Log):
1 "EDU" stands for Equivalent Dwelling Unit
2 "ADWF" stands for Average Dry Weather Flow
3 "BOD" stands for Biochemical Oxygen Demand
4 "TSS" stands for Total Suspended Solids
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APPENDIX D
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APPENDIX E
Table 1
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection
Five Year Projection
2026
Extended Year Projection
2030 2031 20322023 2024 2025 2027 2028 2029 2033
Assumptions:

Interest Earnings Rate
Revenue Increase from Growth
Rate Adjustment

0.50%

0.00%

2.00%

0.37%

3.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%
Monthly Service Charge for Single Family $127.06 $130.87 $133.49 $136.16 $138.88 $141.66 $144.49 $147.38 $150.33 $153.34 $156.41 Beginning O&M Fund Balance $22,698,115 $25,800,900 $12,471,000 $5,118,900 $7,188,000 $10,350,600 $12,892,800 $15,709,000 $18,706,600 $21,992,000 $25,484,300 Operating Revenues
Service Charges
Connection Fees [1]
Interest Earnings [2]
Other Revenue
20,121,293 20,799,000 21,291,000
50,000
21,795,000
50,000
22,311,000
50,000
22,839,000
50,000
23,379,000
50,000
23,932,000
50,000
24,498,000
50,000
25,078,000
50,000
25,671,000
50,00045,500
113,491
1,000
50,000
516,000
1,000
249,000
1,000
102,000
1,000
144,000
1,000
207,000
1,000
258,000
1,000
314,000
1,000
374,000
1,000
440,000
1,000
510,000
1,000
Operating Revenue 20,281,283 21,366,000 21,591,000 21,948,000 22,506,000 23,097,000 23,688,000 24,297,000 24,923,000 25,569,000 26,232,000 Non Operating Revenue
Bond / Loan [3]
Non Operating Revenue
46,418,785 14,235,063
46,418,785 14,235,063
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total Revenue 66,700,068 35,601,063 21,591,000 21,948,000 22,506,000 23,097,000 23,688,000 24,297,000 24,923,000 25,569,000 26,232,000 Operating Expenses
Employee Services 2,883,682
1,116,826
266,126
661,550
3,400,000
894,301
2,838,710
1,167,852
266,126
733,550
3,700,000
976,739
2,952,258
1,197,048
272,779
3,070,348
1,226,974
279,598
3,193,162
1,257,648
286,588
3,320,888
1,289,089
293,753
3,453,724
1,321,316
301,097
3,591,873
1,354,349
308,624
3,735,548
1,388,208
316,340
3,884,970
1,422,913
324,249
4,040,369
1,458,486
332,355
Internal Services (from City)
Internal Services -ERF
Services & Supplies
EMID Share WWTP O&M
Reallocation
751,889 770,686 789,953 809,702 829,945 850,694 871,961 893,760 916,104 3,700,000
1,001,157
9,875,131
4,000,000
1,026,186
10,373,792
4,200,000
1,051,841
10,779,192
5,200,000
1,078,137
11,991,569
5,300,000
1,105,090
12,311,172
5,500,000
1,132,717
12,738,257
5,600,000
1,161,035
13,073,092
5,800,000
1,190,061
13,515,953
6,000,000
1,219,813
13,967,127Operating Expenses 9,222,485 9,682,977
Operating Net Revenue 11,058,798 11,683,023 11,715,869 11,574,208 11,726,808 11,105,431 11,376,828 11,558,743 11,849,908 12,053,047 12,264,873 Capital Expenses
Transfer Out - Capital Improvement Fund
EMID Share WWTP Expansion
Capital Expenses
5,250,000 11,500,000
47,040,566 25,364,852
52,290,566 36,864,852
11,500,000
3,079,383
14,579,383
2,600,000
941,812
3,541,812
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
Annual Debt Service
Debt Service
2,084,250
2,084,250
2,383,110
2,383,110
4,488,559
4,488,559
5,963,303
5,963,303
5,964,162
5,964,162
5,963,273
5,963,273
5,960,636
5,960,636
5,961,127
5,961,127
5,964,496
5,964,496
5,960,742
5,960,742
5,959,868
5,959,868
Debt Coverage [4] 5.31 4.90 2.61
28,943,073
(7,352,073)
5,118,927

1.94 19,878,907
2,069,093
7,187,993

1.97 19,343,354
3,162,646
10,350,646

1.86 20,554,842
2,542,158
12,892,758

1.91 20,871,808
2,816,192
15,708,992

1.94 21,299,384
2,997,616
18,706,616

1.99 21,637,588
3,285,412
21,992,012

2.02 22,076,695
3,492,305
25,484,305

2.06 22,526,995
3,705,005
29,189,305
Total Expenditures 63,597,301 48,930,939
3,102,767 (13,329,876)
25,800,882 12,471,024
Revenues Less Total Expenditures
Ending O&M Fund
Cash Fund Reserve Test: Minimum Fund
Balance > 25% O&M Expenses
Year-end O&M Fund
25% Operating Expenses
# of Days O&M in Reserves
25,800,882 12,471,024 5,118,927
2,468,783
189
7,187,993
2,593,448
253
10,350,646
2,694,798
350
12,892,758
2,997,892
392
15,708,992
3,077,793
466
18,706,616
3,184,564
536
21,992,012
3,268,273
614
25,484,305
3,378,988
688
29,189,305
3,491,782
763
2,305,621
1,021
2,420,744
470
Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Growth projections for planning purposes
[2] Projected interest calculated as 2% of the Beginning Fund Balance of the Wastewater O&M Fund. [3] Calculated by William Euphrat Municipal Finance, Inc. [4] Minimum requirement debt service covereage requirement = 1.25x 30 | P a g e

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Table 2
City of Foster City / Estero Municipal Improvement District Projected Wastewater Rate Impacts
Current
FY2023
Projected - Fiscal Year Ending June 30Projected Rates
FY2024 FY2025 FY2026 FY2027 FY2028
% Rate Increase 3.00% 2.00% 2.00% 2.00% 2.00%
Residential (flat monthly rate)
Single Family
Increase (Decrease)
$127.06
$106.73
$106.73
$130.87 $133.49 $136.16 $138.88 $141.66

3.81 2.62 2.67 2.72 2.78
Townhouse/Duplex
Increase (Decrease)
$109.93 $112.13 $114.37 $116.66 $118.99

3.20 2.20 2.24 2.29 2.33
Apartment/Condominium (Pools w/ Restrooms) $109.93 $112.13 $114.37 $116.66 $118.99 Increase (Decrease) 3.20 2.20 2.24 2.29 2.33
Commercial (rate per ccf of water use )
High Strength
Increase (Decrease) per ccf
$23.09
$8.12
$5.34
$23.78

0.69 $24.26

0.48 $24.75

0.49 $25.25

0.50 $25.76

0.51 Medium/Domestic Strength
Increase (Decrease) per ccf
$8.36

0.24 $8.53

0.17 $8.70

0.17 $8.87

0.17 $9.05

0.18 Low Strength $5.50 $5.61 $5.72 $5.83 $5.95
Increase (Decrease) per ccf 0.16 0.11 0.11 0.11 0.12
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CHART C
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APPENDIX F
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Notice of Public
Hearing on Proposed
Water Rates
Estero Municipal
Improvement District
Monday, June 5, 2023
6:30 P.M.

SAID HEARING will be held as a hybrid meeting
with an in -person component and by teleconfer-
ence and/or video conference at
www.fostercity.org/fctv, subject to appropriate
regulations. The meeting address is 620 Foster
City Boulevard, Foster City, CA 94404. Final
meeting location(s) will be listed on the published
agenda.

The public may participate by submitting com-
ments via email to [email protected]
or by providing live verbal public comment by
joining the meeting via teleconference and/or
video conference, or in person. Instructions on
how to join the meeting are included in the top
portion of the agenda posted at:
www.fostercity.org/agendasandminutes.

Rate Assistance Program
The District may be able to offer Rate Assistance
discounts to qualifying customers. To learn more or to
apply, go to: www.fostercity.org/wwrap.

Water Conservation Tips
Water is a precious resource! Thank you for taking steps to save water and lower your monthly bill.
• Switch from lawn to drought-tolerant landscape.
• Turn the faucet off while brushing your teeth to save about 1 gallon of water per minute.
• Run only full loads in the clothes washer or
dishwasher.
• Fix leaks around your home.

Water Conservation Rebates
Get money to help pay for water-saving changes at your
home or business. The District offers the following
rebates and more:
• “Lawn Be Gone” Program
• Smart Irrigation Controller Rebate
• Synthetic Turf Rebate
• Sprinkler Head and Rotating Nozzle Rebate

For information on water conservation rebate programs,
go to: https://www.fostercity.org/publicworks/page/water- conservation-rebate-programs

Questions
If you have questions regarding this notice, please
contact (650) 286-3270 or [email protected].

Estero Municipal Improvement District
610 Foster City Boulevard
Foster City, CA 94404
You are hereby notified, pursuant to Government Code Sec- tion 53759, there is a 120-day statute of limitations for chal- lenging any new, increased, or extended water fee, rate, or charge. As such, that any judicial action or proceeding to attack, review, set aside, void, validate, or annul the District Board’s adoption of the proposed water rates must be com- menced within 120 days of the effective date or of the date of the final passage, adoption, or approval of the ordinance or resolution adopting the water rates.

XXX
XXX

XXX

PRESORT
Standard
U.S. Postage
Paid
Mailed from
Zip Code
92899
Permit #146

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Public Hearing Notice

The Estero Municipal Improvement District (EMID) will hold a public hearing to establish new water rates for FY 2023 - 2024 with an increase of 6% for fixed water charges and

4.3% for variable water charges. As a water customer or owner of record for a property that receives water service, we are informing you that the District Board will hold a public hearing on June 5, 2023, at 6:30 p.m. to consider proposed changes to its current rates to take effect on July 1, 2023.

Why are new water rates being proposed?
A significant driver for the proposed rate increases is to smooth District rate adjustments due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The SFPUC, the sole water supplier for the District, projects that its wholesale rate will increase from $4.75 per hundred cubic feet (ccf) in FY 2023 to $5.30 FY 2024. These increases are included in the projected
rates.

Other adjustments were required to provide necessary reve- nue for the maintenance, operational and capital costs asso- ciated with the water distribution enterprise.

Protest of Proposed Rates
Anyone may appear and be heard on any matter relating to the proposed water rates. Any record owner of a parcel upon which fees are proposed, or any tenant directly responsible for the payment of water service fees (i.e. a customer of record), may submit a written protest to the City Clerk / Dis- trict Secretary at the return address in this notice. Per state law, only one protest per parcel will be counted. A written protest must include: (1) the address or parcel number of the impacted property; (2) a statement that the protest is submit- ted in opposition to increases to the water rate; and (3) the name and original signature of the person submitting the protest. Electronic protests will not be counted. If the District does not receive written protests against the proposed ser- vice charges by a majority of the affected parcels by the end of the public hearing, then the District is authorized to approve the proposed rates.

Proposed Water Rate Changes
The proposed water rates were calculated to ensure that all customers are paying rates that are proportionate to each customer’s costs of service. The proposed rate revisions that will be considered by the EMID Board are based on a water rate study (“Study”) conducted by Bartle Wells Associates.

The Study is available on the City’s website:
www.fostercity.org/publicworks/page/water -and-wastewater- rates.

Single-Family Residences
Single-family residences with responsibility for indoor (domestic) and outdoor (irrigation) water uses are placed in a tiered rate structure whereby the cost of water increases based on the amount of water used in a bi-monthly billing cycle as follows:

Multi-Family Residences (per living unit)
Multi-family residences with responsibility for indoor water uses are placed in a tiered rate structure whereby the cost of water increases based on the amount of water used in a bi- monthly billing cycle as follows:

Irrigation Customers
Irrigation customers with separate irrigation water meters are provided an individually-prepared water budget based on the square footage of landscaping being watered. Usage
within the water budget allotment will be charged at
$6.36/ccf. Usage over the water budget allotment will be charged $7.22/ccf for every unit of water over the allotment.

Customized reports through the year let customers know
how they are doing in water use.

Commercial Customers and Fire Line
- - - - - - - - - - - -
Note: One (1) CCF = 748 gallons
Fixed Meter Charges
The fixed water meter charge ensures the continued safe delivery of water through the system. The meter ratios are based on meter size in compliance with the American Water Works Association.

Why is There No Public Hearing for Wastewater Rates?
The District Board previously held Public Hearings to ap- prove maximum rate increases of 10% for FY 2023 -2024
and 2% for FY 2024 -2025 to support debt -financing costs associated with the District’s share of expanding the
Wastewater Treatment Plant jointly owned with the City of San Mateo. The EMID Board is planning a rate increase of only 3.0% in FY 2023 -2024, which does not require an addi- tional public hearing because it does not exceed the previ- ously approved increase.

Tier (#ccf) Current Proposed FY 2023-2024
Tier 1—0 to 20 $6.10 $6.36
Tier 2—Over 20 6.64 7.01
Tier (#ccf) Current Proposed FY 2023-2024
Tier 1—0 to 10 $6.10 $6.36
Tier 2—Over 10 6.68 7.09
Water Budget Consumption Current Proposed FY 2023-2024
<= 100% $6.10 $6.36
> 100% 6.70 7.22
Consumption Current Proposed FY 2023-2024
All Usage $6.21 $6.47
Monthly Charge Current Proposed
Domestic and/or Irrigation Customers
5/8” and 3/4” $26.05 $27.60
1” 43.42 46.00

1.5” 104.20 110.40
2” 138.93 147.20
3” 303.92 322.00
4” 547.05 579.60
6” 1,215.67 1,288.00
8” or greater 2,084.00 2,208.00
Private Fire Service Protection Meter
5/8” and 3/4” 36.47 38.64
1” 36.47 38.64

1.5” 36.47 38.64
2” 48.71 51.61
3” 106.28 112.61
4” 191.47 202.86
6” 425.40 450.71
8” or greater 729.40 772.80

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Company Detail
Company Name INFOSEND INC
Address 4240 E LA PALMA AVE
ANAHEIM, CA 92807-1816
Contact Name MATT SCHMIDT
Phone Number (714)993-2690
Profit Indicator P
PS Form 3607R - Mailing Transaction Receipt
Account Holder Account Number 9000012400
Account Holder Permit Number 146
Account Holder Permit Type PI
Account Holder CRID 8536585
Post Office of Permit ANAHEIM CA 92899-9301
Post Office of Mailing ANAHEIM CA 92899-9301
Post Office of Permit Cost Center 050222-0218
Post Office of Mailing Cost Center 050222-8552
Mailing Agent Name INFOSNED
Mailing Agent CRID 3969488
Mail Owner Name Estero Municipal Improvement District
Mail Owner CRID 35397657
JOB ID 96079
Customer Reference ID 96079
CAPS Transaction Number N/A
Class of Mail USPS Marketing Mail
Processing Category Letters
Postage Statement ID 541133536
Mailing Group ID 408397826
Mailer's Mailing Date 04/21/2023
Mailer Declared Total Pieces 9,698 pcs.

Mailer Declared Total Weight 118.3156 lbs.

Mailer Declared Weight of a single-piece 0.0122 lbs.

USPS Determined Total Pieces 9,698 pcs.

USPS Determined Total Weight 118.3156 lbs.

USPS Determined Weight of a single-piece 0.0122 lbs.

Total Number of Containers 29
Total Adjusted Postage $ 2,198.11
Payment Date and Time 04/21/2023 09:28
Payment Transaction Number 202311111281131M1
Adjustment Transaction Number
Mailer Figures Adjusted? No
Person authorizing adjustment
Name
Phone Number
Acceptance Site Mailer ID
Clerk Initials
Mail Arrival Date and Time 04/21/2023 11:28
USPS PostalOne! https://www.uspspostalone.com/PostageProcessingWeb/receipt.do?pop... 1 of 2 04/24/23, 10:23 AM

7.1 Attachment 3 - Mailing Transaction Receipt

262

USPS PostalOne! https://www.uspspostalone.com/PostageProcessingWeb/receipt.do?pop... 2 of 2 04/24/23, 10:23 AM

7.1 Attachment 3 - Mailing Transaction Receipt

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DATE: June 5, 2023

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
FROM: Stefan Chatwin, City/District Manager
Edmund Suen, Finance Director
DEPARTMENT: City Manager, Finance
SUBJECT: PUBLIC HEARING FOR FY 2023-24 PRELIMINARY BUDGET

RECOMMENDATION
It is recommended that the City Council/EMID Board (City Council) receive public comments regarding the FY 2023-24 Preliminary Budget and by Minute Order, provide direction to finalize the budget. Such direction provided by the City Council will then be incorporated in the FY 2023-24 Final Budget for adoption on June 20, 2023. The Five- Year Financial Plan will also be updated accordingly.

EXECUTIVE SUMMARY
As part of the FY 2023-24 annual budget development process, the City Council held budget study sessions on February 27 and March 27 to review various sections of the preliminary budget, including the CIP Funds, Enterprise Funds, and Internal Service Funds. On May 8, 2023, the City Council reviewed the entire preliminary budget, including all the Governmental Funds.

The June 5, 2023 public hearing provides the public an opportunity to comment on the preliminary budget and for the City Council to consider their input before providing direction with respect to the adoption of the Final Budget for FY 2023-24 scheduled on June 20, 2023.

BACKGROUND/ANALYSIS

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On May 8, City staff presented the FY 2023-24 Preliminary Budget and 5-year financial plan for all Funds, including the General Fund (001 to 003). The budget indicated a $4.43 million General Fund structural deficit for FY 2023-24 as well as structural deficits for the entirety of the 5-year financial plan. The City Council gave direction to use General Fund reserves to address the FY 2023-24 budget shortfall and directed the City Manager to develop strategies to address future deficits. The City Manager indicated such strategies may include additional or updated revenue opportunities, cost recovery measures, and operational efficiencies.

Based on adjustments directed by the City Council at the May 8 meeting as well as new information and developments over the past three weeks, City staff has summarized various budget revisions for FY 2023-24 including a $543,294 expenditure increase for the General Fund (Attachment 1). The most significant development was the successful Police Officers Association (POA) labor negotiations culminating in a MOU that is included in the June 5, 2023 Public Hearing consent calendar for the City Council’s approval. The fiscal impact of the MOU is included in the proforma General Fund (001 to 003) FY 2023-24 budget, which now shows a $4.97 million deficit as well as larger annual deficits over the 5-year financial plan (Attachment 2). Finally, any additional direction received at tonight’s meeting will be incorporated into the final budget that is scheduled for adoption on June 20,2023.

It would be appropriate for the City Council to receive public testimony relative to the FY 2023-24 Preliminary Budget. Upon hearing the public testimony, City staff recommends that the City Council provide direction towards the preparation of the final FY 2023-24 Final Budget.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
Based on City Council direction from tonight’s public hearing, City staff will incorporate adjustments in the FY 2023-24 Final Budget for adoption on June 20, 2023. The May 8, 2023 Preliminary Budget can be found at:
https://www.fostercity.org/finance/page/annualbudget

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:

Attachment 1 – Revisions to the FY 2023-24 Preliminary Budget presented on May 8, 2023

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Attachment 2 – Proforma revised General Fund (Fund 001 to 003) FY 2023-24 Preliminary Budget and 5-Year Financial Plan

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ATTACHMENT 1
Fund
No. Fund Name
Revenues
Increase
(Decrease)
Expenditures
Increase
(Decrease)
Legend
Comments
General Fund (001 to 003)
001 General Fund (750) 1 Remove City Attorney Travel 001 General Fund 439 2 Increase C/CAG Administrative Costs 001 General Fund (20,911)
2 Decrease in Fire OES JPA/Emergency
Services Council FY 2023-24 budget to
$50,089
001 General Fund 564,516
2 New POA MOU
Total General Fund (001 to 003) 543,294
General Fund Projected Deficit, 5/8/23 4,431,600 Revised General Fund Deficit 4,974,894
General Fund-Community Benefit Fund 005
005 General Fund-Community Benefits
Fund 78,000
1,3 Continue with RPPG Legislative
Advocacy/Grant Writing Services for
entirety of FY 2023-24
005 General Fund-Community Benefits
Fund 250,000
1 Foster City Entry Monuments
Total 328,000
Compensated Absences Internal Service Fund 509
509 Compensated Absences Fund 14,223
2 Reconcile Compensated Absences
revenues to ISF assessments to City
departments
Total Compensated Absences 14,223
Legend:
1 City Council direction at 5/8/23 budget study session 2 New information/events after 5/8/23 budget study session 3 Revisions to the FY 2023-24 Preliminary Budget presented on May 8, 2023 Under Resolution 2022-16, the City has an approved 3 year contract with RPPG through January 2024 with a monthly cost of $6,500. The $78,000 budget is for 12 months of services.

7.2 Attachment 1 - Revisions to the FY 2023-24 Preliminary Budget

267

ATTACHMENT 2
Five Year Forecast as of May 8 Budget Study Session
Projected
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Total Revenues 58,848,482 57,946,287 61,220,893 60,713,943 62,905,285 64,894,235 Expenditures 54,144,472 56,377,887 59,179,686 59,364,212 60,794,935 61,568,985 Net revenues over (under) expenditures before transfers 4,704,010 1,568,400 2,041,207 1,349,731 2,110,350 3,325,250 Net Transfers In (Out) (3,478,713) (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) 1,225,297 (4,431,600) (3,958,793) (4,650,269) (3,889,650) (2,674,750) American Rescue Plan Act Relief (ARPA) 4,054,920 - - - - - 5,280,217 (4,431,600) (3,958,793) (4,650,269) (3,889,650) (2,674,750) Opening Fund Balance 44,019,375 49,299,592 44,867,992 40,909,199 36,258,930 32,369,280 Ending Fund Balance (Reserves) 49,299,592 44,867,992 40,909,199 36,258,930 32,369,280 29,694,530

87.4% 75.8% 68.9% 59.6% 52.6% 47.3%
Five Year Forecast with Added Expenditures
Projected
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Total Revenues 58,848,482 57,946,287 61,220,893 60,713,943 62,905,285 64,894,235 Expenditures 54,144,472 56,377,887 59,179,686 59,364,212 60,794,935 61,568,985 Additional expenditures, including POA MOU - 543,294 1,047,217 1,415,203 1,481,323 1,438,654 Revised Expenditures 54,144,472 56,921,181 60,226,903 60,779,415 62,276,258 63,007,639 Net revenues over (under) expenditures before transfers 4,704,010 1,025,106 993,990 (65,472) 629,027 1,886,596 Net Transfers In (Out) (3,478,713) (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6,000,000) 1,225,297 (4,974,894) (5,006,010) (6,065,472) (5,370,973) (4,113,404) American Rescue Plan Act Relief (ARPA) 4,054,920 - - - - - 5,280,217 (4,974,894) (5,006,010) (6,065,472) (5,370,973) (4,113,404) Opening Fund Balance 44,019,375 49,299,592 44,324,698 39,318,688 33,253,216 27,882,243 Ending Fund Balance (Reserves) 49,299,592 44,324,698 39,318,688 33,253,216 27,882,243 23,768,839

86.6% 73.6% 64.7% 53.4% 44.3% 37.0%
|--------------------------Five Year Financial Plan-----------------------------| Net Increase (Decrease) in Fund Balance Excluding ARPA
Net Surplus (Deficit)
Reserve Balance as % of Next Year's Operating
Expenditures
Net Increase (Decrease) in Fund Balance Excluding ARPA
Relief
Net Surplus (Deficit) as presented in Budget Study Session on 5/8/23
Reserve Balance as % of Next Year's Operating
Expenditures
City of Foster City, California
General Fund (Funds 001 to 003)
Revised Five Year Financial Plan FY 2023-24 to FY 2027-28, as of 6/5/2023 City of Foster City, California
General Fund (Funds 001 to 003)
Preliminary Five Year Financial Plan FY 2023-24 to FY 2027-28, as of 5/8/2023 |--------------------------Five Year Financial Plan-----------------------------|

7.2 Attachment 2 - Proforma revised General Fund (Fund 001 to 003) FY 2023-24 Preliminary Budget and 5-Year Financial Plan

268

DATE: June 5, 2023

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager

FROM: Ray Towne, Interim Public Works Director
DEPARTMENT: Public Works
SUBJECT: WASTEWATER TREATMENT PLANT MASTER PLAN
IMPROVEMENTS PROJECT (CIP 455-652) - CLEAN WATER
PROGRAM - UPDATE FOR QUARTER 1 – JANUARY THROUGH
MARCH 2023

RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) by minute order, receive and accept this Q1 progress update on the Wastewater Treatment Plant (WWTP) Master Plan Improvements Project (CIP 455- 652) – Clean Water Program (CWP). No further action is required by the EMID Board of Directors.

EXECUTIVE SUMMARY
This report summarizes the progress-to-date of the WWTP Master Plan Improvements Project (CIP 455-652) - Clean Water Program (CWP) for the City of San Mateo/EMID WWTP for the months of January 2023 through March 2023.

The report includes summary information about construction and other project activities over the first quarter of the calendar year.

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BACKGROUND
The CWP is a comprehensive Capital Improvement Program to rehabilitate the sanitary sewer collection system in the City of San Mateo and the treatment systems at the San Mateo WWTP. EMID has 24.12% ownership of the WWTP. In October 2014, the City of San Mateo retained Jacobs to serve as the Program Manager responsible for overseeing the management of the approximately $1 billion-dollar combined program, including the coordination of the design, construction, and start- up activities of this multi-year project.

To remain apprised of the progress of the portion of the CWP for which EMID is responsible (i.e., WWTP Nutrient Removal and Wet Weather Flow Management Upgrade and Expansion Project (WWTP Expansion Project)), the EMID Board of Directors requested that staff provide updates on a regular basis. The WWTP Expansion Project is being performed using a Construction Manager at Risk (CMAR) delivery method, whereby the contractor is involved in the project early in the design process and the City benefits from the contractor providing constructability input and insight to inform the design development.

The Program Manager and Construction Manager is Jacobs. The WWTP Expansion Project Design Engineer is HDR. The team for the disinfection improvements portion of the WWTP Expansion Project is Trussell Technologies.

HDR is also providing Engineering Services During Construction (ESDC). The CMAR is Sundt Construction Inc. (Sundt).

ANALYSIS
Construction is progressing well overall.

Construction Packages 1 & 2 – Site Preparation (Original Agreement with Sundt - $33,098,178) and Foundation Piles (Amendment No. 1 to the Agreement with Sundt - $17,716,049) are complete and currently in the closeout phase.

Construction Package 3 – WWTP Facilities (Amendment No. 2 to the Agreement with Sundt – $379,880,746) is progressing well. However, the project experienced time impacts to critical path activities due to major rain events and high winds during the recent wet weather season. The Contractor is tracking weather delays and making best efforts to mitigate associated schedule impacts. The majority of the concrete and associated scope of work including forming, installing rebar, and placing concrete for slabs, walls, columns, and decks is nearing completion. Through March 2023, 100% of the concrete has been placed, which marked a significant milestone for the project.

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Other major ongoing items of work include installation of pumps and piping, process mechanical, plumbing, HVAC, and electrical work for the new facilities in all areas of the treatment structure. Odor control equipment and blowers continue to be installed. Application of special coatings is nearing completion in the primary clarifiers. Yard piping is nearing completion. Ongoing construction of the Warehouse and the Administration Building with interior improvements and exterior siding continues.

Construction of the new treatment facilities is anticipated to be completed in Fall 2023, to be followed by commissioning and process startup activities. Construction of the Administration Building is progressing well and is expected to be completed this month. The Administration Building associated sitework (for example: site lighting, irrigation, signage, etc.) will continue through early fall. The Administration Building is expected to be “ready for occupancy” in September 2023. However, the City/WWTP Operations staff is planning to occupy the building in early 2024 at the time of process startup and operations of the new WWTP. Despite weather related issues, the overall work under Package 3 is anticipated to be completed within the current contract completion date.

QUARTERLY CONSTRUCTION REPORT
Attachment 1 consists of selected portions of the Quarterly Progress Report for January through March 2023 published by the Program Management Team on April 19, 2023, summarizing the budget, schedule, and project activities that have occurred during the first quarter of 2023 and activities that are anticipated to occur in the second quarter of 2023 for the following projects:
•WWTP Expansion Project (comprised of GMP-1, GMP-2, and GMP-3), •Immediate Action Projects (IAPs), and
•Annual Major Component Projects (AMCs).

Attachment #2 consists of a site plan showing the locations of the various process units being constructed as part of the projects.

Attachment #3 includes photographs of construction activities at the site over the past 3 months.

More detailed information including additional photographs and architectural renderings of the completed WWTP Expansion Project as well as real time video of the active construction, are available on the Clean Water Program Project site:
https://cleanwaterprogramsanmateo.org/wwtp/.

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FINANCING
In addition to free cash flow from the District’s and City of San Mateo’s wastewater enterprises, financing for the project consists of the following funding sources:

Revenue Bonds – The San Mateo Foster City Public Financing Authority (“PFA”) sold $270 million in revenue bonds in 2019 for Clean Water Program costs. The District’s share of the proceeds from that bond issue was $40,131,000. The WWTP 2019 bond funds were fully expended in July 2021.

The Program through the San Mateo-Foster City PFA is obtaining additional financing through the two programs as described below:

Water Infrastructure Finance and Innovation Act (WIFIA) - The PFA approved the close of the WIFIA loan in November 2020 in the total amount of $277.2 million (San Mateo share is $210.4 million and EMID share is $67.8 million). The WIFIA loan has excellent rates (1.32% for San Mateo and 1.14% for EMID). We have until 8/1/25 to start drawing on the WIFIA loan.
2021 Wastewater Revenue Notes, Series A (Estero Municipal Improvement District) - On July 1, 2021, the San Mateo-Foster City PFA issued $62.76 million of 2021 Wastewater Revenue Notes, Series A (EMID) to attain a cost savings (from lower interest rates than the WIFIA loan) of approximately $1.1 million for the financing of EMID’s share of WWTP project costs. These notes have a maturity date of 8/1/25 when the City will draw on the WIFIA Loan to pay off the notes.

State Revolving Fund (SRF) –The SRF loan package, for a maximum loan amount of $137,000,000, was approved by the State with an interest rate not to exceed

1.6% (EMID’s share of the loan is $33,044,400). These funds are now available as part of the financial strategy for the project.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
A Programmatic Environmental Impact Report (EIR) was prepared for the WWTP Master Plan Improvements Project (State Clearinghouse No. 2015032006).

FISCAL IMPACT
There is no fiscal impact associated with receiving this update.

As described in the Quarterly Report provided as Attachment A, the total forecast Estimate At Completion (EAC) for the WWTP Expansion Project increased by

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272

approximately $1.3 million (EMID share: approximately $300,000) from the last quarterly update. Based on previous discussions with the Finance department, the recent cost increases are not anticipated to require additional sewer rate increases.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 – Selected Portions of Quarterly Progress Report – 1st Quarter Report, January 1, 2023 to March 31, 2023
Attachment 2 – Wastewater Treatment Plant Site Plan
Attachment 3 – Construction Photographs

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GMP1 – Contract
Contractor Sundt
Award Date 5/6/2019
Construction NTP 6/4/2019
Duration (calendar days) 1124
Contracted Completion Date 7/1/2022
Total Original Contract Amount $33,098,178.00
Contingency Amount $1,725,000.00
Forecast Completion Date 2/1/2023
Current Contracted Amount $34,783,550.00
Actual Expended $31,630,697.00
GMP2 – Contract
Contractor Sundt
Award Date 5/4/2020
Construction NTP 5/5/2020
Duration (calendar days) 619
Contracted Completion Date 01/14/2022
Total Original Contract Amount $17,716,049.00
Contingency Amount $1,645,000.00
Forecast Completion Date 2/1/2023
Current Contracted Amount $17,963,767.00
Actual Expended $17,206,534.00

Active Wastewater Treatment Plant Projects
46T003 WWTP Nutrient Removal and Wet Weather Flow
Management Upgrade
Project Description:

The WWTP Upgrade and Expansion Project will replace aging infrastructure, provide capacity for wet weather flows, comply with regulatory requirements, enhance reliability, and produce a higher quality effluent that meets current and future permit requirements and Title 22 recycled water quality. Producing a higher quality effluent will enable the City to develop a water reuse Program.

GMP3 – Contract
Contractor Sundt
Award Date 9/21/2020
Construction NTP 9/22/2020
Duration (calendar days) 1563
Contracted Completion Date 1/2/2025
Total Original Contract Amount $379,880,747.00
Revised Contract Amount $383,790,833.00
Original Contingency Amount $13,900,000.00
Revised Contingency Amount $15,336,910.00
Forecast Completion Date 1/2/2025
Current Contracted Amount $395,185,879.00
Actual Expended $274,568,530.00

Current Period Activities
Project/Construction Management
 Procuring the Air Gap for the domestic water system.   PG&E has removed old service and connected to new service in February 2023   Completed the installation of rebar and concrete for the processing areas of the plant in April 2023.

January through March 2023 P A G E 10

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023
Project Inside
Project Manager Leswin DCunha
Project Type Wastewater System
Phase Construction

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

274

 Monthly WWTP update meeting with Foster City management team.  Engineering Design/ Services During Construction
 Interpretive Signage: RHAA working on the final design phase.  ESDC: HDR continued review of submittals and RFIs on GMP 3; development of design change notices; onsite and remote support by Resident Engineer. .HDR has started the preparation of electronic Operations and Maintenance Manuals
Permitting
 The new Tier 4 Generators passed their testi ng and comply with the Air Board requirements. Public Outreach
 PM/CM and the CWP Public Outreach Lead coordi nated on regular project updates to the website, newsletter, social media, etc.
Construction
GMP-1
 Project close out is almost completed. 
GMP-2
 Project close out is almost completed. 
GMP-3
 Electrical, concrete, and mechanical work including installation of pumps and piping was performed for the new facilities in all areas. Odor control equipment and blowers continue to be installed. Application of special coatings is nearing completion in the primary clarifiers.  Commissioning meetings were held to continue di scussing start-up activities, including roles and responsibilities.
 Yard piping is nearing completion. 
 Continued pricing for several change events. 
 Construction of the Administration Building continued with interior improvements and the exterior siding.   Construction of the Warehouse continues. 








January through March 2023 P A G E 11

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

275

Next Period Activities
Project/Construction Management
 HDR’s to provide additional ESDC services incl uding development of process O&M manuals, process training, expanded discipline-specific Resident Engineer services, and related known scope reflected in the contingency budget.
Engineering Design/Services During Construction
 Interpretive Signage: RHAA to progress to final design.   ESDC: HDR to continue to provide onsite resident engineering services. Permitting
 Record the WWTP Final Parcel Map with the County. 
Public Outreach
 Provide project updates to the CWP Public Outreach Lead for monthly newsletter, website, and social media updates.
 Continue as-needed support in response to resident queries via the communication hotline.  Construction
GMP-1
 Close out project 
GMP-2
 Close out project. 
GMP-3
 Install process mechanical and electrical in Areas 51, 52, 53, 55, and 56.   Continue the interior and exterior improvements in the Administration building.   Continue the construction of the Warehouse.

January through March 2023 P A G E 12

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

276

Risks and Opportunities
 Cal Water’s New Potable Water Main Extension: Completed  PG&E’s New Primary Service: Completed
 Relocation of PG&E’s Utilities from Detroit Drive: Completed

January through March 2023 P A G E 13

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

277

Financial Status
Overall EAC continues to trend closer to budget. PM and CM team are managing to reduce this gap.

Millions

Budget                    $532.71

Actual Cost to date               $401.93

Estimate at Completion                    $552.16



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Schedule Status
Part of re-baseline efforts. Current foreca st shows to be completed on time in January 2025.

January through March 2023 PA G E 14

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

278

46T009 IAP Package II
Project Description:

Replace and repair aging infrastructure at the WWTP by adding screening, flexibility, and redundancy for WWTP solids processes. The project includes: (1) Mechanical bar screen and repair of concrete wall at the IJB; (2) Effluent PS #1 pumping and piping improvements; (3) replace two of the oldest pumps in PS #1; (4) Cake pumping system: add second cake pumping system; and (5) Second cake hopper system: add a second cake hopper, slide gate, access walkway, and platform.

Current Period Activities
Project/Construction Management
 Coordinated City negotiations with Contractor for  time extension / delays. 
Worked with Contractor on Cake pump issues. 
Engineering Design/ Services During Construction
(Various)
 Stantec  ESDC is ongoing through the remainder of its construction period. Permitting
 No activities this period. 
Public Outreach
 No activities this period. 
Construction
Immediate Action Projects, Package II (IAP II)
 Installation of Hopper Modifications
Next Period Activities
Project/Construction Management
Continued change management support. 
Engineering Design and Engineering Services During Construction Stantec ESDC is ongoing through the remainder of its construction period.  Continue review of submittals and RFI. 
Permitting
No activities this period. 







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January through March 2023 Page 27

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023
Project Inside
Project Manager Tyler Kirkendall
Project Type Wastewater System
Phase Construction
Design Firm Stantec, HDR
IAP II – Contract
Contractor Myers & Sons
Award Date 2/11/2019
Construction NTP 2/19/2019
Duration (calendar days) 848
Contracted Completion Date 6/14/2021
Contract Amount $6,340,000
Contingency Amount $934,000
Forecast Completion Date 5/31/2023
Current Contracted Amount $7,159,241
Actual Expended $7,122,741

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

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Public Outreach
No activities this period. 
Construction
Immediate Action Projects, Package II (IAP II)
Work with Contractor to Complete fix to the cake pump issue  Risks and Opportunities
Sludge Cake Hopper No. 1 has not su ccessfully completed start-up testing. Contractor working to identify issue affecting Cake Pump No. 1 and requested both design engineer and Vendor assistance in their troubleshooting of Cake Pump No. 1. Design Engineer provided new sludge cake measurement technology selection in DC 8, which was issued to the Contractor in September. City contracted with a third party to provide recommendations for fixing the Cake pump. The third party has recommended removal of welded pipe and installation of new piping. City working with Contractor for a solution. Delays to the project by sludge cake pumping syste m will result in significant delays to the project.

Financial Status
Current update shows an overrun ($2.15M) of current budget.

Millions

Budget                    $12.95

Actual Cost to date                  $12.67

Estimate at Completion                      $15.10
Schedule Status
Project schedule temporary on hold while issues are being resolved. Anticipates construction to be completed by May 31, 2023

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Q1 2023

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280

46T010 IAP Package III
Project Description:

Upgrade aging infrastructure and increase reliability for the effluent PS at the WWTP. Improvements include perform hydraulic analysis on the effluent PS and flow meters; replace MCCs P1, P2, P3, and P4 in the Main Structure Building; add variable-frequency drives (VFDs) and check valves on stormwater pumps; replace check valves (3) for dry weather pumps; replace MCCs/VFDs (4) and control panels (4) for dry weather pumps; and replace doors (3) and windows (10), repair roof, and add HVAC for the PS.

Current Period Activities
Project/Construction Management (City/Jacobs)
Currently advertising the project. 
Engineering Design/ Services During Construction (HDR)
None reported. 
Next Period Activities
Project/Construction Management (City/Jacobs)
Award. 
Engineering Design/ Services During Construction
HDR to begin EDSC. 
Risks and Opportunities
Rescoping the project will push out the completion date of the project.

Financial Status
With a rescoped design estimate, the project shows an overrun of $16.1 million. The PM is working to generate a CRF to move budget funds after the value engineering and or rescoping of the project is completed.

Budget
$2.47
million

Actual Cost to date
$1.38
million

Estimate at Completion                          $18.53 million

Schedule Status
Current forecast shows final completion in August 2024.

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SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023
Project Inside
Project Manager Daniel Patten
Project Type Wastewater System
Phase Engineering

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

281

46T090 Annual Major Component WWTP
Project Description:

Maintain reliable plant operations to meet regulatory permit requirements and repair and replace critical WWTP
infrastructure. The operations and maintenance team maintain an active list of potential projects that are implemented as funds are available.

Current Period Activities
Project/Construction Management (City/ Jacobs)
Additional AMC project
 Update WWTP Biosolids and Energy Management Plan
 Digester 1 Improvements
 Centrifuge and Centrifuge Feed Pump Replacement
 Solids Handling Systems I&C Improvements
 Digester Transfer Pump Project
 3 Water Pumping Improvements
 DAFT Corrosion Improvements
Permitting (Various)
None
Construction
EPS (Express Plumbing Services) Inc. submitted as-builts for AMC 6 + 23.  Next Period Activities
Project/Construction Management (City/ Jacobs)
None 
Engineering Design/ Services During Construction
Design Consultants working on the AMC projects.

Permitting
None 
Construction
None 
Risks and Opportunities
AMC 36 Centrifuge Conveyor Replacement is on hold. 




January through March 2023 P A G E 30 

SAN MATEO CLEAN WATER PROGRAM QUARTERLY REPORT
Q1 2023
Project Inside
Project Manager Daniel Patten
Project Type Wastewater System
Phase Engineering

8.1 Attachment 1 - Selected Portions of Quarterly Progress Report - 1st Quarter Report, January 1, 2023 to March 31, 2023

282




Financial Status
Project shows EAC over budget.by $2.71 million

Millions

Budget                 $7.34

Actual Cost to date      $1.32

Estimate at Completion        $1.80     $10.05
Schedule Status
AMC 6 +23 was completed in November 2022. All ot her AMC Projects are in the predesign phase. 






















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283

Completed Projects

Wastewater Treatment Plant Projects
Updated to latest values from EDEN (January 2020)

Name

Start Date
Finish
Date

Actual Cost
469948: SCADA Immediate Projects: Phase 2 (IAP) 1/2/2015 11/25/2015 $1,524,717 469962: Short-Term MCC Replacement Project (IAP) 1/2/20 15 11/25/2015 $49,628 469973: Secondary System: Immediate Projects: SCs 1-4 and return- activated sludge Pump Values (IAP)
1/2/2015 11/25/2015 $426,918
469975: Solids: Immediate Projects: GT 1&2 (IAP) 1/2/20 15 11/25/2015 $372,358 469976: Immediate Projects: Boiler Replacement 1/2/2015 4/29/2016 $475,296 469978: Solids Building: Immediate. Projects: Centrifuge Hoist Project (IAP) 1/2/2015 11/25/2015 $2,410 46T002 IAP Package I 8/1/ 2018 8/28/19 $18,621,868
TOTAL $21,472,951

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Q1 2023

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284

WASTEWATER TREATMENT PLANT SITE PLAN
Attachment 2
Area 64
Area 52
Area 80
Area 51Area 51
Area 53
Area 55
Area 56

8.1 Attachment 2 - Wastewater Treatment Plant Site Plan

285

View of Areas 51 (Headworks) and 64 (Odor Control)‐ Ongoing Work March 31, 2023
January 1, 2023
January through March 2023 P A G E 15

8.1 Attachment 3 - Construction Photographs

286

Area 51 (Headworks) Blower Room – April 5, 2023
Area 51 (Headworks) Electrical Room‐ April 5, 2023
January through March 2023 PAGE 16

8.1 Attachment 3 - Construction Photographs

287

Area 64 Odor Control Area – April 5, 2023
January through March 2023 PAGE 17

8.1 Attachment 3 - Construction Photographs

288

View of Areas 52 (Primary Clarifiers), 53 (BioActiflo), 55 (BNR Basins), and 56 (MBR)‐ Ongoing Work
March 31, 2023
January 1, 2023
January through March 2023 P A G E 18

8.1 Attachment 3 - Construction Photographs

289

Area 52 Preliminary Effluent Pump Station - April 5, 2023 January through March 2023 P A G E 19
Area 52  Preliminary Clarifiers  ‐April 5, 2023

8.1 Attachment 3 - Construction Photographs

290

View of Areas 56 (MBR) ‐ Ongoing Work
March 31, 2023
January 1, 2023
January through March 2023 P A G E 20

8.1 Attachment 3 - Construction Photographs

291

View Inside the Electrical Room for Area 56 (MBR)
April 5,2023
January 1,2023
January through March 2023 Page 21

8.1 Attachment 3 - Construction Photographs

292

View inside the Membrane Permeate Pump Room Area 56 (MBR) April 5, 2023
January 1, 2023
January through March 2023 Page 22

8.1 Attachment 3 - Construction Photographs

293

View of Area 80 (Administration Building) – Ongoing Work March 31, 2023
January 1, 2023
January through March 2023 Page 23

8.1 Attachment 3 - Construction Photographs

294

Area 80 (Administration Building) Operations Control Room April 5, 2023
Unisex Restroom
January through March 2023 Page 24

8.1 Attachment 3 - Construction Photographs

295

Area 80 (Administration Building) - Laboratory
April 5, 2023
Elevator
January through March 2023 Page 25

8.1 Attachment 3 - Construction Photographs

296

View of the Warehouse
April 5, 2023
January 1, 2023
January through March 2023 Page 26

8.1 Attachment 3 - Construction Photographs

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3 0
5 DATE: June 5, 2023

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Derek Schweigart, Parks and Recreation Director
Tiffany Oren, Recreation Manager
DEPARTMENT: Parks and Recreation
SUBJECT: UPDATE ON DEVELOPMENT OF CITY OF FOSTER CITY’S AGE-FRIENDLY CITY INITIATIVE THREE (3) YEAR ACTION
PLAN

RECOMMENDATION
It is recommended that the City Council, by Minute Order, consider and accept this progress update on the City’s Age Friendly City (AFC) Initiative Three (3) Year Action Plan.

This action supports Foster City’s initiative in joining the World Health Organization’s Age-Friendly Global Network.

EXECUTIVE SUMMARY
The City’s AFC application was submitted and accepted by AARP/World Health Organization in 2020-2021, indicating Foster City’s commitment to assess the age friendliness of our community and to create a plan to make the city more livable for people of all ages.

Staff plans to enter into an agreement with Rachel Bell for consultant services for the development of an AFC Initiative Three (3) Year Action Plan.

The consultant with the support of staff and partnering organizations will develop an Action Plan aiming to address a few of the unmet needs of older adults as it relates to the eight domains of age-friendly communities and as identified by community members

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3 0
5 throughout the initial process. An age-friendly community also sets the intent to seek continual improvement and an ongoing assessment of its community's needs in the future and beyond.

The eight (8) Domains of Age-Friendly Communities according to AARP (American Association of Retired Persons) are:

1. Outdoor Spaces and Buildings

2. Transportation

3. Housing

4. Social Participation

5. Respect and Social Inclusion

6. Work and Civic Engagement

7. Communication and Information

8. Community and Health Services
The development of the City’s AFC Initiative Action Plan is expected to take approximately 4-6 months. After which, staff will bring the plan back to the Council for its review and acceptance before the plan’s implementation. Any recommendation from the plan that would require additional City funding resources would need to return to the Council for its consideration and approval or addressed annually as part of the City’s budget process.

BACKGROUND
The World Health Organization's Global Network of Age-Friendly Cities offers opportunities to address our aging population in a positive and inclusive way. The program provides resources to help communities actively help people live more comfortably in their homes and communities, and also encourages older residents to take an active role and have their voices heard. To become designated as an Age- Friendly Community through the World Health Organization (WHO), means that Foster City is dedicated to providing places for older adults to be engaged and that the community provides social opportunities and services that ensure older adults thrive and feel part of the community.

Foster City’s AFC Initiative began with an introductory report to the City Council at their regular meeting on July 6, 2020. This was the kick-off for the work the City began with the County of San Mateo and Center for Age-Friendly Excellence (CAFÉ). This work resulted in the formation of an Age-Friendly Community Task Force who led the initiative as well as several focus group meetings and one-on-one surveys which culminated in the development project goals.

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3 0
5 At the regular City Council meeting on November 16, 2020, the Council passed a resolution (Reso No. 2020-117) supporting Foster City’s AFC initiative in joining the World Health Organization’s Age-Friendly Global Network and authorizing the submittal of an application and letter to the AARP with the Mayor as the designated signatory on behalf of the City.

The application outlined (4) inaugural projects for Foster City’s AFC Initiative to pursue over the next five (5) years. These included:
•Project 1: Coordination and support of the Foster City AFC Initiative to ensure continued progress and stability.
•Project 2: A multi-faceted plan to promote existing civic engagement and employment opportunities and develop new ones.
•Project 3: A multi-faceted communication and information plan about services and recreational opportunities for older adults and their families. •Project 4: A multi-faceted respect and inclusion plan for Foster City’s older adult residents.

ANALYSIS
The goals of the AFC Initiative strongly align with the goals of the City of Foster City, to nurture public services that residents want and value, operate a world-class and sustainable local government, value and build a desirable and vibrant community for residents and businesses alike now and into the future, and invest properly in being a safe community at all times for all people. The City of Foster City is committed to the health, wellness, lifelong education, and quality of life of its older adult residents.

In 2021, the City’s application to become a designated Age-Friendly Community was accepted by AARP/WHO. However, due to several management and personnel changes within the Foster City organization and the effects of COVID-19, further work on the City’s AFC initiative was paused.

Due to the limited capacity in both the City Manager’s Office and in the Parks and Recreation Department, it was recommended that the City acquire additional resources and collaborate with other community organizations and partners to pick up work on the AFC Initiative from when it was paused. The recommended consultant, Rachel Bell, has assisted the following cities with development of their AFC Initiative Action Plans: City of Berkeley, the City of Fremont, the City of Redwood City, the City of San Mateo, and the County of Santa Clara.

California Environmental Quality Act
Not Applicable

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3 0
5 FISCAL IMPACT
The consultant fee to develop the Age-Friendly City Initiative Three (3) Year Action Plan is $3,500 will be paid out of the Special Recreation Senior Programs Contract budget.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
This item aligns with the following City Council’s priority areas: Facilities and Infrastructure, Operational Excellence and Social Equity as they all focus on preserving and enhancing the quality of life for all of our residents.

ATTACHMENTS:

Attachment 1 – Consultant Proposal for AFC Initiative Action Plan Development

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Project Proposal: Age-FriendlyFoster CityMay31, 2023

OVERVIEW
Foster CityjoinedtheAge-FriendlyCitiesNetworkin2020. Aspart of thiscommitment, theCitymust producea3-year actionplanthat highlightscurrent effortstosupport older adultsaswell asplansfor improvement basedonguidelinesprovidedbyAARP. I havehelpedtheCityof Berkeley,theCityof Fremont, theCountyof SantaClara, andtheCityof SanMateodeveloptheir actionplans, andcanbringmyexpertisetoFoster City.

PROJECTGOAL
Adapt AARP’s3-year Age-FriendlyActionPlanframeworktoFoster CitybyAugust 31.

SPECIFICATIONS
● Thefinal report will include:○ Anintroductoryletter fromanappropriatecityleader○ A1-pagesummaryof theage-friendlycityinitiativeandthecity’sprocess○ A2-pagesummaryof basicinformationabout thecity(e.gdemographics)○ Onepagefor eachof the8domains○ A 1-pagesummaryof actionsteps○ Onepagewithcommunitypartners, citydepartment leads, andother stakeholderswhohavecontributedtotheplanandwill helpimplement theactionsteps.● Foster Citywill provide:○ InformationcollectedbyCAFEduringcertificationprocess, including:■ Adescriptionof the3-4age-friendlyprojectschosen■ Survey, townhall, or focusgroupdata○ Informationabout current cityprogramsandprojectsthat canbeconsideredage-friendly(e.g. linkstowebsitesdescribingprogramsthat shouldbehighlighted)○ Guidancefor choosingappropriateactionsteps○ Signedletter fromanappropriatecityofficial○ At least 20photosthat canbeusedinthereport (real or stockphotos)○ Citybrandingcolorsandlogo

8.2 Attachment 1- Consultant Proposal for Age-Friendly Initiative Action Plan Development

302

INVOICE
From: For:Rachel Bell Foster City, Parks&Recreation365LaurieMeadowsDr. #116SanMateo, CA94403(413) [email protected] Date: May31, 2023Project: Age-FriendlyFoster City3-Year ActionPlanEstimatedCompletionDate: August 31, 2023**Scopeof Work: seeproject proposal (attached) _______________________________________________________________ Amount Due: $3,500.00
Duedate: August 31, 2023
**Thistimelineassumesall materialsoutlinedintheproject proposal areprovidedbyFoster CitybyJune10, 2023.

8.2 Attachment 1- Consultant Proposal for Age-Friendly Initiative Action Plan Development

303

3 5
6 DATE: June 5, 2023

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City/District Manager

FROM: Ramon Towne, Interim Public Works Director/City/District Engineer DEPARTMENT: Public Works
SUBJECT: ESTABLISHING WASTEWATER RATES FOR FISCAL YEAR
2023-2024

RECOMMENDATION
It is recommended that the City Council of the City of Foster City (Council) and Board of Directors of the Estero Municipal Improvement District (EMID) adopt the attached resolutions amending the Master Fees and Service Charges Schedule to establish new Wastewater Rates effective July 1, 2023.

EXECUTIVE SUMMARY
On March 27, 2023, the EMID Board held a Budget Study Session to consider an analysis by EMID's rate consultant, Bartle Wells Associates (BWA), of the existing adopted five- year wastewater rates through FY 2024-2025. Pursuant to direction received from the EMID Board at that meeting, staff prepared the attached resolutions establishing a rate increase of 3% for FY 2023-2024, which is lower than the previously adopted 10%, and therefore does not require a public hearing to be held. While information about the wastewater rates was included in the Public Hearing Notice and the Proposition 218 notice that were prepared for the Water Rates, it was done to provide additional information to the public, even though it was not legally required.

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3 5
6 The proposed rates provide adequate revenue for operations, treatment, capital expenditures and transfers, and maintains the operating fund balance at or above target levels.

BACKGROUND
EMID provides wastewater service to a total of approximately 13,950 residential, commercial and institutional accounts.

Wastewater customers are placed into either low, medium or high wastewater strength categories based on the State Water Resources Control Board Wastewater Revenue Program Guidelines. Low strength customers include banks and retail stores. Medium strength customers are assumed to be similar to residential strength factors. Examples of Medium Strength customers include spas and bars. High strength customers are primarily food-related businesses such as restaurants and bakeries.

EMID participates in a Joint Powers Authority with the City of San Mateo where it receives treatment of its wastewater via the San Mateo Wastewater Treatment Plant (WWTP).

EMID is responsible for its share of operating and maintenance cost as well as approximately 24% of the WWTP capital improvement costs associated with the Clean Water Program. In June 2020, the EMID Board approved five (5) years of wastewater rate increases: three 14.25% per year increases in FY 2020-2021 through FY 2022-2023; a 10% rate increase in FY 2023-2024 and a 2% increase in FY 2024-2025. BWA’s 2023 analysis shows that EMID has adequate financing capacity for project debt issuances in the next several years and recommends implementing a rate increase of 3% in FY 2023- 2024 rather than the previously approved 10%.

On March 27, 2023, the EMID Board held a Budget Study Session regarding water and wastewater rates for FY 2023-2024. At the Budget Study Session, the EMID Board considered information developed by BWA. Based upon that analysis, the EMID Board directed staff to prepare resolutions for a rate increase of 3% in FY 2023-24. Although a Public Hearing is not required in order to take this action, the EMID Board directed that basic information about wastewater rates be included in the Proposition 218 notice and the Public Hearing notice for Water Rates as a courtesy to customers.

ANALYSIS
The proposed rates provide for adequate revenue for operations, treatment, capital expenditures and transfers, and maintains the operating fund balance at or above target levels.
•Operational Costs: EMID’s projected operating expenditures are anticipated to increase over the next five years by 27%, due primarily to a significant projected increase in operations costs associated with the new WWTP.

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3 5
6 •Capital Funding: EMID’s strategy for funding long-term capital wastewater improvements calls for an annual transfer from wastewater operating revenues, collected through rates, to the City’s Capital Improvement Fund to fund those projects over the next fifteen (15) years. The proposed rate projections include a transfer out of $11,500,000 in the first two years and then 2,600,000 thereafter.

Table 2 from the BWA analysis (Exhibit A) provides a comparison of current wastewater rates to proposed rates.

The EMID Board has previously adopted rates for FY 2024 and FY 2025. The Projected Rates shown for FY 2026, FY 2027 and FY 2028 will be reviewed and validated or updated in future studies.

A significant driver for the proposed rates is to account for debt service payments related to EMID’s share of the Clean Water program and the anticipated cost of Capital Improvement Projects in the first two years of the rate plan.

The EMID Board has implemented a long-term rate model that takes into consideration costs for the current WWTP project as well as significant EMID-specific capital improvements and seeks to maintain rate increases as consistently as possible. The proposed FY 2023-2024 rates were prepared using this 15-year model.

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3 5
6 Rate Survey
The consultant surveyed communities along the San Francisco Peninsula to compare EMID’s typical residential monthly wastewater bill with neighboring communities. The results of the survey are summarized on page 29 of the BWA report included as Exhibit A. As shown, EMID’s average monthly wastewater bill for FY 2022-2023 is $127.06.

Since it is unknown what the comparator agencies are proposing for FY 2023-2024, EMID compares its current monthly residential wastewater bills for FY 2023 to the FY 2023 rates for the neighboring agencies. The survey indicates that EMID’s wastewater rates remain higher than average compared with other agencies on the Peninsula (number 17 out of 22 agencies). For FY 2022-2023, the average monthly wastewater bill for the region (based on flat rate or 5 units of monthly winter water use) is $106.09 per month.

Public Notice
Since the EMID Board previously adopted a wastewater rate increase of 10% for FY 2023-2024, public noticing under Proposition 218 was not required, although EMID did include information about wastewater rates on the Proposition 218 notice and the Notice of Public Hearing that it issued for Water Rates, as a courtesy to customers.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
•CEQA Guidelines Section 15273 – Rates, Tolls, Fares, and Charges •Exempt per General Rule, Section 15061 (b) (3)

FISCAL IMPACT
Proposed wastewater rates for FY 2023-2024 will sufficiently cover the projected system expenditures while adhering to budget policy objectives established by the EMID Board related to enterprise funds. All fiscal impacts for the wastewater system are borne by wastewater system customers. There is no General Fund impact.

Staff prepared the attached resolutions to incorporate the rate changes into the Master Fees and Service Charge Schedule. The proposed rates are based upon the data that was reviewed by, and direction received from, the EMID Board at its March 27, 2023 meeting.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis

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3 5
6 Exhibit B - FY 2023-2024 Wastewater Rates

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RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ESTABLISHING WASTEWATER RATES FOR FISCAL YEAR 2023-2024

CITY OF FOSTER CITY
WHEREAS, in June 2020, the City/EMID adopted five (5) years of wastewater rate increases including a 10% rate increase in FY 2023-2024; and WHEREAS, the City/District hired Bartle Wells Associates (“BWA”) to review the wastewater rates and make recommendations on rate increases for the next five years to reflect current costs of service and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water and Wastewater Rate Study dated March 15, 2023, (“Wastewater Rate Study”), which shows that the District has adequate financing capacity for project debt issuances in the next several years and recommends reducing the remaining rate increases, starting with a 3% increase in FY 2023-2024; and
WHEREAS, at its Budget Study Session held on March 27, 2023, the City Council/District Board reviewed detailed analyses of the District’s utility system operations, revenues, expenses and long-term capital improvement program; and WHEREAS, the City Council/District Board determined to continue to use a low, medium and high wastewater strength category rate structure based on the State Water Resources Control Board Wastewater Revenue Program Guidelines, and confirmed that it wished to increase wastewater rates for FY 2023-2024 by 3%, rather than the previously approved 10%, based on a Bond Financing Wastewater Rate Smoothing Model, and based upon projected expenditures (including the District’s share of its joint costs with the City of San Mateo for a 20-year Wastewater Treatment Plant Master Improvements Project); and
WHEREAS, the Wastewater Rate Study indicates wastewater service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, since the wastewater rates are being set at a level for Fiscal Year 2023-2024 that is less than the previously adopted amount, the rates are not being “extended, imposed, or increased” within the meaning of Article XIII D, section 6 of the California Constitution, California Government Code section 53750, or Health and Safety Code section 5471; and
WHEREAS, the attached Exhibit A (Water and Wastewater Rate Study)

9.1 Attachment 1 - City Resolution

309

incorporates the City Council and EMID Board’s policy direction received at the City Council meeting on March 27, 2023.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY HEREBY RESOLVES AS FOLLOWS:

1. The City Council hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

2. The City Council hereby finds that the wastewater service charge rate increase is exempt from CEQA under the "General Rule", Section 15061 (b) (3), in that it can be seen with certainty that no environmental impacts will result from these actions, and under CEQA Guideline section 15273 as these actions apply only to rates and fees to obtain funds necessary to operate and maintain the wastewater system.

3. The wastewater rates adopted by the City and EMID in June 2020 were in compliance with the California Constitution Article XIII D.

4. The City Council sets the wastewater rates at the amounts set forth in the attached Exhibit B (FY 2023-2024 Wastewater Rates) as the City Council’s new wastewater service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2023-2024.

5. The City Council accepts and approves the Wastewater Rate Study in the attached Exhibit A setting forth the basis for the wastewater service charge rates.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 5th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________

JON FROOMIN, MAYOR
ATTEST:
________________________________

PRISCILLA SCHAUS, CITY CLERK

9.1 Attachment 1 - City Resolution

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RESOLUTION NO. ________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING WASTEWATER RATES FOR FISCAL YEAR 2023-2024

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, in June 2020, the District Board adopted five (5) years of wastewater rate increases including a 10% rate increase in FY 2023-2024; and WHEREAS, the EMID hired Bartle Wells Associates (“BWA”) to review the EMID’s wastewater rates and make recommendations on rate increases for the next five years to reflect current costs of service and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water and Wastewater Rate Study dated March 15, 2023, (“Wastewater Rate Study”), which shows that the District has adequate financing capacity for project debt issuances in the next several years and recommends reducing the remaining rate increases, starting with a 3% increase in FY 2023-2024; and
WHEREAS, at its Budget Study Session held on March 27, 2023, the EMID Board reviewed detailed analyses of the District’s utility system operations, revenues, expenses and long-term capital improvement program; and WHEREAS, the EMID Board determined to continue to use a low, medium and high wastewater strength category rate structure based on the State Water Resources Control Board Wastewater Revenue Program Guidelines, and confirmed that it wished to increase wastewater rates for FY 2023-2024 by 3%, rather than the previously approved 10%, based on a Bond Financing Wastewater Rate Smoothing Model, and based upon projected expenditures (including the District’s share of its joint costs with the City of San Mateo for a 20-year Wastewater Treatment Plant Master Improvements Project); and
WHEREAS, the Wastewater Rate Study indicates wastewater service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, since the wastewater rates are being set at a level for Fiscal Year 2023-2024 that is less than the previously adopted amount, the rates are not being “extended, imposed, or increased” within the meaning of Article XIII D, Section 6 of the California Constitution, California Government Code section 537520, Health and Safety Code Section 5471; and

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WHEREAS, the attached Exhibit A (Water and Wastewater Rate Study) incorporates the City Council and EMID Board’s policy direction received at the City Council/EMID Board meeting on March 27, 2023.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE ESTERO
MUNICIPAL IMPROVEMENT DISTRICT HEREBY RESOLVES AS FOLLOWS:

1. The EMID Board hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

2. The EMID Board hereby finds that the wastewater service charge rate increase is exempt from CEQA under the "General Rule", Section 15061 (b) (3), in that it can be seen with certainty that no environmental impacts will result from these actions, and under CEQA Guideline section 15273 as these actions apply only to rates and fees to obtain funds necessary to operate and maintain the water system.

3. The wastewater rates adopted by the City and EMID in June 2020 were in compliance with the California Constitution Article XIII D.

4. The EMID Board sets the wastewater rates at the amounts set forth in the attached Exhibit B (FY 2023-2024 Wastewater Rates) as the EMID’S new wastewater service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2023-2024.

5. The EMID Board accepts and approves the Water and Wastewater Rate Study in the attached Exhibit A setting forth the basis for the water service charge rates.

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 5 th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________

JON FROOMIN, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

9.1 Attachment 2 - EMID Resolution

312

2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE:

TO:

March 15th, 2023
City of Foster City/Estero Municipal Improvement District Bartle Wells AssociatesFROM:

SUBJECT: Water and Wastewater Rate Study Update Results

SUMMARY OF FINDINGS AND RECOMMENDATIONS
Introduction and Background
The Estero Municipal Improvement District (District) engaged Bartle Wells Associates (BWA) to develop 10-year financial projections for the District’s Water and Wastewater Enterprises and to recommend water and wastewater rate adjustments for the next five- year period. BWA last conducted formal rate studies in 2022, which resulted in a one-year rate approval for water rates for FY 2023. No public hearing was held for wastewater, as the adopted wastewater rates were determined to be adequate.

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

Water
The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The rate increase is due to a variety of factors including growth in capital spending, continued low water usage due to drought and covid-19 recovery, and repayment of the balancing account.

SFPUC, the sole source of water supply for the District, released updated projections for their wholesale rate for the next five years (FY 2024 to FY 2028). SFPUC is projecting the current rate of $4.75 in FY 2023 per hundred cubic feet (ccf) will increase to $5.30 in FY 2024. The wholesale rate is projected to remain flat at $5.30 per ccf from FY 2024 to FY 2027, with a final increase to $5.54 in FY 2028.
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SFPUC rates were historically held level at $4.10/ccf for six years (FY 2017 to FY 2022) despite escalating SFPUC debt service and operating costs through use of a balancing account. The balancing account was built up from SFPUC wholesale water sales exceeding projections used in rate setting. In FY 2023, the wholesale rate was increased 15.9% to $4.75/ccf. The increase in the SFPUC wholesale rates was due to the balancing account fund balance reaching zero. SFPUC rates are projected to increase by 11.6% in FY 2024, 0% in FY 2025, 0% in FY 2026, and 0% in FY 2027 and 4.5% in FY 2028.

During the time that SFPUC wholesale rates were held flat by the balancing account, the District has been gradually increasing its volumetric rates in anticipation of projected wholesale rate increases by SFPUC. While the wholesale rate increases have come to fruition, the District’s rates have been phased to ensure sufficient revenues and avoid sharp increases based on a rate smoothing model.

The District will also continue to make annual payments, projected to be $594,012 in FY 2024, to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the WSIP capital improvements that were funded through the issuance of bonds. The water enterprise’s single largest cost is water purchases from SFPUC.

BWA proposed water rates are designed to maintain the operating fund above target levels (90 days operating expenses in reserves) and cover District operating and capital costs. Excluding water purchase and capital related costs, District operating costs are projected to increase by about 3% per year. Additionally, the District is projected to set aside $2,500,000 for capital improvements in FY 2024 and $1,120,000 each year thereafter. The capital improvement transfer amount is based on funding the District’s water master plan. Proposed water rates are based on 10% water loss, a reduction from 11% water loss used in the previous study. The amount of the losses is projected to decrease due to the District’s efforts to replace aging meters. That is, 90% of the water EMID purchases is sold to retail customers.

To maintain the operating reserves, fund the capital set aside, and phase in volumetric rates, BWA recommends the District implement a 4.3% volumetric rate increase and a 6% meter charge increase in FY 2024. The average bill for a single family home would increase by 4.8% or $3.63 per month.

Detailed water rate calculations are shown in APPENDIX C. 2 | P a g e

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Wastewater
The District has entered into a Joint Powers Agreement with the City of San Mateo where the District receives treatment of its wastewater via the San Mateo Wastewater Treatment Plant (WWTP). The District is responsible for its share of operating and maintenance costs that San Mateo (as the lead agency and the contracting party) incurs treating the District’s wastewater, as well as approximately 24% of the WWTP improvement costs incurred as part of the Clean Water Program (CWP), a 10-year comprehensive capital improvement project initiated in 2014. The Cities of San Mateo and Foster City (District) are expanding the jointly owned WWTP at an estimated cost of $670 MM with $152 MM of that falling under Foster City’s contributions. This is in addition to local capital projects for the District’s own wastewater collection system. The wastewater enterprise intends to fund collection system capital expenditures through annual transfers from the operating fund to the capital improvement fund.

In June 2020, to fund the anticipated costs of the WWTP CWP improvements, the District Board approved 5 years of wastewater rate increases: three 14.25% per increases in FY 2021 through FY 2023, a 10% wastewater rate increase in FY 2024, and a 2% increase in FY 2025. BWA’s 2023 analysis shows that the District has adequate financing capacity for projected debt issuances in the next several years and recommends spreading the remaining rate increases out over a longer period. BWA proposes reducing the 10% increase in FY 2024 to 3% and implementing the adopted 2% increase in FY 2025. BWA recommends conducting a 5-year rate study analysis in FY 2025, which would result in an adopted rate schedule for next 5 year period.

Detailed wastewater rate calculations are shown in APPENDIX E.

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

The water survey compares a median monthly water bill for 6 units of water which would be a common residential consumption. Including the recommended increase, the 3 | P a g e

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District’s median monthly water bill proposed for FY 2024 is $65.76. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2023 monthly residential water bills to the FY 2023 monthly residential water bills for the neighboring agencies. The survey indicates that the District’s water rates are among the lowest on the Peninsula. The average monthly water bill for the region based on 6 ccf is $83.35 per month and the District’s average monthly residential water bill is $62.65 per month, or about 25% less. Since the proposed increase is also less than the FY 2023 average, it is likely that EMID customers will continue to pay much lower than average water bills.

Including the recommended increase, the District’s proposed monthly wastewater bill for FY 2024 is $130.87. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2023 monthly residential wastewater bills to the FY 2023 monthly residential wastewater bills for the neighboring agencies. The survey indicates that the District’s current wastewater rates are above the average amongst its comparator agencies. The average monthly bill for the region is $106.09 and the District’s rate is $127.06 per month, or about 20% more.

APPENDIX F shows how the combined water and wastewater bills compare to regional agencies based on FY 2023 rates. The District’s total combined water and wastewater bill is $189.71 per month. The average monthly combined water and wastewater bill for the region is $189.63 per month or approximately the same. 4 | P a g e

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Water Enterprise Fund
The District currently provides water service to a population of approximately 36,500.

Most of the District’s customers are residential. Table 1 shows the approximately 8,247 accounts/meters that allow for water service and fire protection service.

Table 1
City of Foster City / Estero Municipal Improvement District Water Meters By Size
Data as of: 01/29/23
Meter Size Accounts Meter Ratio1,2 Est. Meter Equivalents3 Water Service
3/4"
1"
1-1/2"
2"
3"
4"
6"
6,825
453
169
379
89 1.00

1.67 4.00
6,825
755
676
2,021
1,038
1,197
1,353
1,520

5.33 11.67

21.00 46.67

80.00 57
29 198" or greater
Subtotal 8,020 15,385
Private Fire Protection Service
3/4"
1"
1-1/2"
2"
3"
4"
6"
1 7
3 0
2 35
96 83

1.40 1.40

1.40 1.87

4.08 7.35
1 10
4 0
8 257
1,568
2,324

16.33 28.008" or greater
Subtotal 227 4,172
Total 8,247 19,557
Source: Foster City/Estero Municipal Improvement District water use records [1] The meter ratios shall be based on meter size in compliance with ratios established by the American Water Works Association (AWWA) Sizing Water Service Lines and Meters M22, Second Edition, 2004 (M22 Manual)
[2] Private fire protection service ratio based on the fire s ervic e line; Resolution No. 2715 [3] Equals the number of accounts multiplied by the meter ratio for each meter size. 5 | P a g e

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Table 2 illustrates the current reserves that the District can draw down in case of emergency or to smooth any “rate shocks” to its customers. In recent years reserves were used as a buffer due to unexpected increases in system water losses.

The District is meeting its 90-day operating fund reserve target in FY 2023 (estimated to be $4.18 million.) The target is based on the District’s long standing reserve policy and is an industry standard minimum target to maintain adequate short term liquidity in case of emergencies.

Table 2
City of Foster City / Estero Municipal Improvement District Water Enterprise Operating Reserves
July 1, 2022
Fund Reserve Component Reserve Balance
Reserved for Maintenance & Operation (401)
Total
$8,761,676
$8,761,676
Note: Rate model only includes fund reserve components available to fund ongoing operating expenditures.

Source: City of Foster City/Estero Municipal Improvement District Staff The wholesale water purchase rates that SFPUC is projecting through FY 2028 are shown graphically in CHART A. The SFPUC rates are projected to increase from $4.75/ccf in FY 2023 to $5.54/ccf in FY 2028.
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CHART A
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Table 3 summarizes the District’s projected operating expenditures which are anticipated to increase over the next five years by about 8.9%.

Table 3
City of Foster City / Estero Municipal Improvement District Water Enterprise O&M Projection
Revised
Budget
FY2023
Five Year Projection Annual %
Increase [1]Expenditures
FY2024
2,591,329
1,010,581
510,436
FY2025 FY2026
2,802,781
1,061,742
536,277
FY2027
2,914,893
1,088,285
549,684
FY2028
3,031,488
1,115,492
563,426
Employee Services 2,631,141
952,510
510,436
706,362
10,246,000
645,785
1,255,133
200,000
5,500
2,694,982
1,035,846
523,197

4.0%

2.5%

2.5%

2.5%
varies
Internal Services - Others
Internal Services - ERF
Services & Supplies
SFPUC Water Purchases
BAWSCA Bond Repayment
Reallocation [2]
750,362 769,121 788,349 808,058 828,259
10,289,000 10,326,000 10,363,000
594,012
10,400,000
594,012
10,907,000
594,012594,012
1,288,230
200,000
594,012
1,320,436
200,000
15,000
1,353,447
200,000
1,387,283
200,000
1,421,965
200,000

2.5%

2.5%
Water Sustainability
Capital Outlay/Vehicles 600,000 15,375 15,759 16,153
TOTAL O&M Expenditures 17,152,867 17,833,950 17,478,593 17,714,983 17,957,974 18,677,796

4.0% -2.0% 1.4% 1.4% 4.0%
[1] Based on City/District Staff direction
[2] Costs allocated to the Water Enterprise from other departments based on the City's cost allocation study. 8 | P a g e

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Table 4 summarizes the current water rates. The District has variable expenditures which are expenditures that are impacted by the amount of water its customers consume. These costs must be recouped via its volumetric water charge, $6.10 per ccf in FY 2023. Likewise, the District’s meter charges recover fixed expenditures, expenditures that are fixed regardless of amount of water that is consumed, $26.05 for a ¾” meter in FY 2023.

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

Conservation costs of $200,000 per year are allocated to each customer class based on their percentage of total usage. Residential and irrigation customers pay conservation costs on Tier 2 usage only, while commercial customers pay their share of conservation costs on each unit of water usage.

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

APPENDIX A shows the District’s historical water use trends from the prior year. The recent trend has been a decrease in irrigation usage and residential usage, and an increase in commercial usage. BWA’s proposed rates are designed to match volumetric expenses (such as water purchases) with volumetric revenue. The rate structure mitigates over or under collecting revenue due to fluctuations in water use.
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Table 4
City of Foster City / Estero Municipal Improvement District Current Rates
Current Rates
Fixed Meter Charge
2023
Monthly Meter Charge
Meter Size
3/4"
1"
$26.05
$43.42
1-1/2"
2"
3"
4"
$104.20
$138.93
$303.92
$547.05
6" $1,215.67
$2,084.008" or greater
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf
Tier 2 Over 20 ccf
$6.10
$6.64
Multi-Family Residential
Tier 1 0-10 ccf per living unit
Tier 2 Over 10 ccf per living unit
$6.10
$6.68
Irrigation Customers
Tier 1 <=100% of annual budget
Tier 2 >100% of annual budget
$6.10
$6.70
Commercial and Fire Line
All usage $6.21
Monthly Private Fire Protection Charge
Meter Size
3/4"
1"
$36.47
$36.47
1-1/2" $36.47
2" $48.71
3"
4"
6"
$106.28
$191.47
$425.40
$729.408" or greater
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Low Income Discount
Currently Foster City has 13 customers enrolled in the Water/Wastewater Rate Assistance Program (WWRAP), which was implemented in 2020. Customers meeting the eligibility and qualification requirements below are granted a discount of up to $15 per month each on their qualifying Water and Wastewater accounts, not to exceed a $30 per month discount per customer. To be eligible for the WWRAP, customers must show that they qualify for the PG&E CARE Program or other public assistance program or submit proof of income eligibility.

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

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

The estimated maximum potential cost of a $30/month discount for 227 customers amounts to $82,000 per year. Since the low income discount revenue sources cannot be funded with rates, rates are unaffected by the decision on the terms of the program and hence are not required to be included in the Proposition 218 notification. 11 | P a g e

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APPENDIX A
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APPENDIX B
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APPENDIX C
Table 1
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Five Year Projection
2026
Extended Year Projection
2030 2031 2032Fiscal Year Ending June 30
Assumptions:
2023 2024 2025 2027 2028 2029 2033
Interest Earnings Rate
Revenue Increase from Growth [1]
Fixed Charge
Fixed Rate Adjustment
SFR Variable Charge
Variable Rate Adjustment
Monthly Service Charge Single Family (8 ccf)
Rate Adjustment

0.50%

0.00%
$26.05

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

0.37%
$37.65

4.0%
$7.59

0.8%

2.00% 2.00%

0.37%
$40.70

4.0%
$7.70

0.7%

2.00%

0.37%
$27.60

6.0%
$6.36

4.3%

0.37%
$29.25

6.0%
$6.62

4.1%

0.37%
$31.00

6.0%
$6.89

4.1%

0.37%
$32.85

6.0%
$7.18

4.2%

0.37%
$34.80

5.9%
$7.48

4.2%

0.37%
$36.20

4.0%
$7.53

0.7%

0.37%
$39.15

4.0%
$7.65

0.8%

0.37%
$42.35

4.1%
$7.74

0.5%
$6.10
$74.85 $78.48

4.8%
$82.21

4.8%
$86.12

4.8%
$90.29

4.8%
$94.64

4.8%
$96.44

1.9%
$98.37

2.0%
$100.35

2.0%
$102.30

1.9%
$104.27

1.9%
Beginning Fund Balance $8,761,676 $6,329,000 $5,275,100 $5,477,500 $6,406,500 $8,137,500 $10,256,700 $12,327,700 $14,363,700 $16,371,700 $18,313,700 Revenues
Water Sales & Service Charges
Meter Charge Revenue Estimate
Volumetric Revenue Estimate
Connection Fees [1]
Interest Earnings - Operating Reserve [2]
Other
6,114,000 6,501,000 6,915,000 7,356,000 7,823,000 8,318,000 8,684,000 9,065,000 9,460,000 9,871,000 10,309,000 10,725,000 11,222,000 11,730,000 12,248,000 12,808,000 13,386,000 13,515,000 13,660,000 13,820,000 13,947,000 14,059,000 336,949
44,000
0 50,000
127,000
0 50,000
106,000
0 50,000
110,000
0 50,000
128,000
0 50,000
163,000
0 50,000
205,000
0 50,000
247,000
0 50,000
287,000
0 50,000
327,000
0 50,000
366,000
0 Operating Revenues 17,219,949 17,900,000 18,801,000 19,764,000 20,809,000 21,917,000 22,454,000 23,022,000 23,617,000 24,195,000 24,784,000 Expenses
Employee Services
Internal Services - Others
Internal Services - ERF
Services & Supplies
SFPUC Water Purchases
BAWSCA Bond Repayment
Reallocation
2,631,141
952,510
510,436
706,362
2,591,329
1,010,581
510,436
2,694,982
1,035,846
523,197
2,802,781
1,061,742
536,277
2,914,893
1,088,285
549,684
3,031,488
1,115,492
563,426
3,153,000
1,143,000
578,000
3,279,000
1,172,000
592,000
3,410,000
1,201,000
607,000
3,546,000
1,231,000
622,000
3,688,000
1,262,000
638,000
750,362 769,121 788,349 808,058 828,259 849,000 870,000 892,000 914,000 937,000 10,246,000 10,289,000 10,326,000 10,363,000 10,400,000 10,907,000 11,271,000 11,648,000 12,037,000 12,440,000 12,855,000 645,785
1,255,133
5,500
594,012
1,288,230
600,000
594,012
1,320,436
15,000
594,012
1,353,447
15,375
594,012
1,387,283
15,759
594,012
1,421,965
16,153
594,012
1,458,000
17,000
594,012
1,494,000
17,000
594,012
1,531,000
17,000
594,012
1,569,000
17,000
594,012
1,608,000
17,000Capital Outlay / Vehicles
Operating Expenses 16,952,867 17,633,950 17,278,593 17,514,983 17,757,974 18,477,796 19,063,012 19,666,012 20,289,012 20,933,012 21,599,012 Operating Net Revenues 267,082 266,050 1,522,407 2,249,017 3,051,026 3,439,204 3,390,988 3,355,988 3,327,988 3,261,988 3,184,988 Water Sustainability Fund Transfer
Capital Improvement Transfer [3]
200,000
2,500,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
200,000
1,120,000
Total Expenses 19,652,867 18,953,950 18,598,593 18,834,983 19,077,974 19,797,796 20,383,012 20,986,012 21,609,012 22,253,012 22,919,012 Revenues Less O&M Expenses
Revenues Less Total Expenses
Ending Fund Balance
267,082 266,050 1,522,407
202,407
2,249,017
929,017
3,051,026
1,731,026
3,439,204
2,119,204
3,390,988
2,070,988
3,355,988
2,035,988
3,327,988
2,007,988
3,261,988
1,941,988
3,184,988
1,864,988(2,432,918) (1,053,950)
6,328,758 5,275,050 5,477,507 6,406,517 8,137,526 10,256,704 12,327,688 14,363,688 16,371,688 18,313,688 20,178,688 Revenue Test: Annual Revenues > O&M Expenses
Annual Revenues Less O&M Expenses
Pass/fail
267,082
PASS
266,050
PASS
1,522,407
PASS
2,249,017
PASS
3,051,026
PASS
3,439,204
PASS
3,390,988
PASS
3,355,988
PASS
3,327,988
PASS
3,261,988
PASS
3,184,988
PASS
Fund Reserve Test: Minimum Fund Balance > 25% O&M Expenses Year-end fund balance
25% operating expenses
# of Days O&M in Reserves
Pass/fail
6,328,758
4,180,000
136
5,275,050
4,350,000
109
5,477,507
4,260,000
116
6,406,517
4,320,000
134
8,137,526 10,256,704 12,327,688 14,363,688 16,371,688 18,313,688 20,178,688 4,380,000
167
4,560,000
203
4,700,000
236
4,850,000
267
5,000,000
295
5,160,000
319
5,330,000
341

PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS
[1] Estimated for planning purposes
[2] Calculated as 2% of the Beginning Fund Balance of the Water Revenue Fund [3] Capital Improvements are funded through the Long-Term Capital Improvement Project Fund 14 | P a g e

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Table 2
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
Five Year Projection
2026
Extended Year Projection
2031Fiscal Year Ending June 30 2023 2024 2025 2027 2028 2029 2030 2032 2033 Fixed Meter Charge Increase
Fixed Revenues +/- 5% of Fixed Costs?

6.00%
YES

6.00%
YES

6.00%
YES

6.00%
YES

6.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES

4.00%
YES
Reserves % Above (Below) Reserve Target
Reserve Target Met?
121.3%
YES
128.6%
YES
148.3%
YES
185.8%
YES
224.9%
YES
262.3%
YES
296.2%
YES
327.4%
YES
354.9%
YES
378.6%
YES
Revenue Estimates
Meter Charge Revenue
Other Fixed Revenue
Volumetric Revenue
Total Projected
$
$
$
6,114,000
380,949
10,725,000
17,219,949
$
$
$
6,501,000
177,000
11,213,000
17,891,000
$
$
$
6,915,000
156,000
11,728,000
18,799,000
$
$
$
7,356,000
160,000
12,239,000
19,755,000
$
$
$
7,823,000
178,000
12,807,000
20,808,000
$
$
$
8,318,000
213,000
13,386,000
21,917,000
$
$
$
8,684,000
255,000
13,520,000
22,459,000
$
$
$
9,065,000
297,000
13,654,000
23,016,000
$
$
$
9,460,000
337,000
13,833,000
23,630,000
$
$
$
9,871,000
377,000
13,951,000
24,199,000
$
$
$
$
10,309,000
416,000
14,052,000
24,777,000$ $ $ $ $ $ $ $ $ $
Total Projected Revenue (Rounded '000's) $ 17,220,000 $ 17,891,000 $ 18,799,000 $ 19,755,000 $ 20,808,000 $ 21,917,000 $ 22,459,000 $ 23,016,000 $ 23,630,000 $ 24,199,000 $ 24,777,000 $17,219,949 $17,900,000 $18,801,000 $19,764,000 $20,809,000 $21,917,000 $22,454,000 $23,022,000 $23,617,000 $24,195,000 $24,784,000 Revenue Allocation
Fixed
Variable

37.7%

62.3%

37.3%

62.7%

37.6%

62.4%

38.0%

62.0%

38.5%

61.5%

38.9%

61.1%

39.8%

60.2%

40.7%

59.3%

41.5%

58.5%

42.3%

57.7%

43.3%

56.7%
Costs Estimates
Fixed Costs [1]
Variable Costs [2]
Total Projected Costs
$8,561,082
$11,091,785
$19,652,867
$7,870,938
$11,083,012
$18,953,950
$7,478,581
$11,120,012
$18,598,593
$7,677,971
$11,157,012
$18,834,983
$7,883,962
$11,194,012
$19,077,974
$8,096,784
$11,701,012
$19,797,796
$8,318,000
$12,065,012
$20,383,012
$8,544,000
$12,442,012
$20,986,012
$8,778,000
$12,831,012
$21,609,012
$9,019,000
$13,234,012
$22,253,012
$9,270,000
$13,649,012
$22,919,012
Net Revenue
Fixed Charges
Volumetric Charges
Total
-$2,066,133
-$366,785
-$2,432,918
-$1,192,938
$129,988
-$1,062,950
-$407,581
$607,988
$200,407
-$161,971
$1,081,988
$920,017
$117,038
$1,612,988
$1,730,026
$434,216
$1,684,988
$2,119,204
$621,000
$1,454,988
$2,075,988
$818,000
$1,211,988
$2,029,988
$1,019,000
$1,001,988
$2,020,988
$1,229,000
$716,988
$1,945,988
$1,455,000
$402,988
$1,857,988
Cost Analysis
Fixed
Variable

43.6%

56.4%

41.5%

58.5%

40.2%

59.8%

40.8%

59.2%

41.3%

58.7%

40.9%

59.1%

40.8%

59.2%

40.7%

59.3%

40.6%

59.4%

40.5%

59.5%

40.4%

59.6%
Meter Charge Calculation
Monthly charge per meter equivalent
(Rounded to nearest $0.05)
Annual charge per meter equivalent
Meter equivalents [3]
$ 26.05 $ 27.60 $ 29.25 $ 31.00 $ 32.85 $ 34.80 $ 36.20 $ 37.65 $ 39.15 $ 40.70 $ 42.35 $ 312.60
19,557
$ 331.20
19,629
$ 351.00
19,701
$ 372.00
19,773
$ 394.20
19,845
$ 417.60
19,918
$ 434.40
19,991
$ 451.80
20,064
$ 469.80
20,137
$ 488.40
20,211
$ 508.20
20,285
Meter Charge Revenue Estimate $ 6,114,000 $ 6,501,000 $ 6,915,000 $ 7,356,000 $ 7,823,000 $ 8,318,000 $ 8,684,000 $ 9,065,000 $ 9,460,000 $ 9,871,000 $ 10,309,000 Volumetric Rate Calculation
EMID Proposed Uniform Rate
Projected annual water sales (ccf) [4]
Variable revenue estimate
$6.21
1,727,000
$ 6.47
1,733,000
$ 6.74
1,740,000
$ 7.01
1,746,000
$ 7.31
1,752,000
$ 7.61
1,759,000
$ 7.66
1,765,000
$ 7.71
1,771,000
$ 7.78
1,778,000
$ 7.82
1,784,000
$ 7.85
1,790,000
$10,725,000 $11,213,000 $11,728,000 $12,239,000 $12,807,000 $13,386,000 $13,520,000 $13,654,000 $13,833,000 $13,951,000 $14,052,000 % Spread between EMID and SFPUC
Surcharge

SFPUC PROJECTED RATES
Increase (Decrease) %

30.7%
$4.75

22.1%
$5.30

11.6%

27.2%
$5.30

0.0%

32.3%
$5.30

0.0%

37.9%
$5.30

0.0%

37.4%
$5.54

4.5%

34.2%
$5.71

3.0%

31.2%
$5.88

3.0%

28.5%
$6.05

3.0%

25.4%
$6.24

3.0%

22.2%
$6.42

3.0%
BAWSCA Surcharge $0.31
$5.06
$0.31
$5.61
$0.31
$5.61
$0.31
$5.61
$0.31
$5.61
$0.31
$5.85
$0.31
$6.02
$0.31
$6.19
$0.31
$6.36
$0.31
$6.55
$0.31
$6.73SFPUC Rate + BAWSCA Surcharge
EMID Fixed Meter Charge Increase (Decrease)
EMID Volumetric Rate Increase (Decrease)

6.0%

4.2%

6.0%

4.2%

6.0%

4.0%

6.0%

4.3%

5.9%

4.1%

4.0%

0.7%

4.0%

0.7%

4.0%

0.9%

4.0%

0.5%

4.1%

0.4%
Note:
[1] Includes: Employee Services, Internal Services - Other, Internal Services - ERF, Services & Supplies, Reallocation, Capital Outlay, Capital Improvement Fund Transfers, Debt Service, and net revenues for the operating fund. [2] Includes: SFPUC Water Purchases, BAWSCA Bond Repayment, and Water Sustainability Fund Transfers. [3] 0.37% growth estimated for planning purposes
[4] Includes 10% water loss factor
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Table 3
City of Foster City / Estero Municipal Improvement District Proposed Water Rates - Two Tier Hybrid Model
Current

TWO TIER HYBRID MODEL
Recommended Rates Rates FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 Monthly Meter Charge
3/4"
1"
$26.05

43.42 $27.60

46.00 $29.25

48.75 $31.00

51.67 $32.85

54.75 $34.80

58.00 $36.20

60.33 $37.65

62.75 $39.15

65.25 $40.70

67.83 $42.35

70.58 1-1/2"
2"
3"
4"
104.20
138.93
303.92
547.05
110.40
147.20
322.00
579.60
117.00
156.00
341.25
614.25
124.00
165.33
361.67
651.00
131.40
175.20
383.25
689.85
139.20
185.60
406.00
730.80
144.80
193.07
422.33
760.20
150.60
200.80
439.25
790.65
156.60
208.80
456.75
822.15
162.80
217.07
474.83
854.70
169.40
225.87
494.08
889.35
6" 1,215.67 1,288.00 1,365.00 1,446.67 1,533.00 1,624.00 1,689.33 1,757.00 1,827.00 1,899.33 1,976.33 2,084.00 2,208.00 2,340.00 2,480.00 2,628.00 2,784.00 2,896.00 3,012.00 3,132.00 3,256.00 3,388.008" or greater Conservation-Based Water Rate Model (based on bi-monthly allotments) Single Family Residential
Tier 1 0-20 per ccf
Tier 2 Over 20 ccf

6.10 6.64

6.36 7.01

6.62 7.30

6.89 7.59

7.18 7.91

7.48 8.21

7.53 8.24

7.59 8.28

7.65 8.33

7.70 8.36

7.74 8.38
Multi-Family Residential (per living unit)
Tier 1 0-10 ccf per living unit
Tier 2 Over 10 ccf per living unit
Irrigation Customers

6.10 6.68

6.36 7.09

6.62 7.38

6.89 7.68

7.18 8.00

7.48 8.30

7.53 8.33

7.59 8.37

7.65 8.42

7.70 8.44

7.74 8.46
Tier 1 <=100% of annual budget
Tier 2 >100% of annual budget
Commercial and Fire Line Customers
Base Consumption Rate

6.10 6.70

6.36 7.22

6.62 7.52

6.89 7.82

7.18 8.14

7.48 8.44

7.53 8.47

7.59 8.50

7.65 8.55

7.70 8.57

7.74 8.59

6.21 6.47 6.74 7.01 7.31 7.61 7.66 7.71 7.78 7.82 7.85
Monthly Fire Meter Charge
3/4"
1"

36.47 36.47

38.64 38.64

40.95 40.95

43.40 43.40

45.99 45.99

48.72 48.72

50.68 50.68

52.71 52.71

54.81 54.81

56.98 56.98

59.29 59.29
1-1/2" 36.47 38.64 40.95 43.40 45.99 48.72 50.68 52.71 54.81 56.98 59.29 2" 48.71 51.61 54.70 57.97 61.43 65.08 67.69 70.41 73.21 76.11 79.19 3"
4"
6"
106.28
191.47
425.40
729.40
112.61
202.86
450.71
772.80
119.34
214.99
477.65
819.00
126.48
227.85
506.23
868.00
134.03
241.45
536.44
919.80
141.98
255.78
568.28
147.70
266.07
591.15
153.61
276.73
614.82
159.73
287.75
639.32
166.06
299.15
664.63
172.79
311.27
691.58
8" or greater 974.40 1,013.60 1,054.20 1,096.20 1,139.60 1,185.80 (Minimum charge is equivalent to 1-1/2" meter charge)
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Table 4
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
Rates
FY2024
Two Tier Hybrid Model
Monthly meter charge
% Change
$26.05 $27.60

6.0%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf
Tier 2: over 20 ccf
$6.10
$6.64
$6.36
$7.01
Water Monthly
Use Level Use (ccf) Monthly Bill
Low Use r
$ Increase
% Increase
5 $56.55
$62.65
$74.85
$87.05
$148.05
$347.25
$59.40

2.85 5.0%
Median Use r
$ Increase
% Increase
6 $65.76

3.11 5.0%
Average Use r
$ Increase
% Increase
8 $78.48

3.63 4.8%
High Use r
$ Increase
% Increase
10 20
50 $91.20

4.15 4.8%
Very High Use r
$ Increase
% Increase
$161.30

13.25 8.9%
Ex ce ssive Use r
$ Increase
$371.60

24.35 % Increase 7.0%
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Table 5
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current Fiscal Year Ending June 30
2025 2026 2027
Extended Year ProjectionProjected Water Bills
2023 2024 2028 2029 2030 2031 2032 2033
Two Tier Hybrid Model
Single Family Residential Monthly Rate $74.85 $78.48 $82.21 $86.12 $90.29 $94.64 $96.44 $98.37 $100.35 $102.30 $104.27 $ Increase
% Increase

3.63 3.73 3.91 4.17 4.35 1.80

1.9%

1.93 2.0%

1.98 2.0%

1.95 1.9%

1.97 1.9%4.8% 4.8% 4.8% 4.8% 4.8%
Based on Single Family Residential Use of 8 ccf
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Wastewater Enterprise Fund
There are approximately 13,966 wastewater accounts serviced by the District. The majority of accounts are residential with the remainder consist of commercial and institutional accounts as shown in Table 1.

Table 1
Foster City / Estero Municipal Improvement District
Wastewater Service Accounts
Data as of: 02/01/22
Customer Class Number of Accounts
Residential
Single Family
Townhouse/Duplex
4,535
2,277
Apartment/Condominium (Pools w/ Restrooms)
Residential Total
6,906
13,718
Commercial
Restaurants 42
Commercial/Hotels/Offices/Industrial/Laundromats 171
Commercial Total 213
Institutional
Institutional/Schools 35
35Insitutional Total
Total 13,966
Source: Cognos Sewer Customer Count Report
The District has approximately $22,698,115 in its wastewater maintenance and operations reserve fund as shown in Table 2. The District’s minimum operating reserve target is 25% of operating and maintenance expenses (est. to be about $2.3 million). 19 | P a g e

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Table 2
Foster City / Estero Municipal Improvement District
Wastewater Operating Fund Reserves
July 1, 2022
BalanceFund Reserve Component
Reserved for Maintenance & Operation
Total
$22,698,115
$22,698,115
Note: Rate model only includes fund reserve components available to fund ongoing operating and capital expenditures.

Source: City of Foster City/Estero Municipal Improvement District Staff Table 3 summarizes the current wastewater service rates.

Table 3
Foster City / Estero Municipal Improvement District
Current Wastewater Rates
Current
Fiscal Year Ending June 30 2023
Residential (flat monthly rate)
Single Family
Townhouse/Duplex
$127.06
106.73
106.73Apartment/Condominium (Pools w/ Restrooms)
Commercial (rate per ccf of water use)
Restaurants
Commercial/Hotels/Offices/Industrial/Laundromats

23.09 8.12
Institutional (rate per ccf of water use)
Institutional/Schools 5.34
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Table 4 summarizes the operating expenditures of the enterprise. Costs are expected to remain relatively stable over the next five years.

Projected operating expenditures are anticipated to increase over the next five years by about 30%.

Table 4
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise O&M Projection
Revised
Budget
FY2023
Five Year Projection Annual %
Increase [1]Expenditures
FY2024 FY2025 FY2026
$3,070,348
1,226,974
279,598
FY2027
$3,193,162
1,257,648
286,588
FY2028
$3,320,888
1,289,089
293,753
Employee Services $2,883,682 $2,838,710 $2,952,258
1,197,048
272,779

4.0%

2.5%

2.5%

2.5%
N/A
Internal Services (from City)
Internal Services -ERF
Services & Supplies
EMID Share WWTP O&M
Reallocation [2]
1,116,826
266,126
661,550
3,400,000
894,301
1,167,852
266,126
733,550
3,700,000
976,739
751,889 770,686 789,953 809,702
3,700,000
1,001,157
4,000,000
1,026,186
4,200,000
1,051,841
5,200,000
1,078,137 2.5%
TOTAL O&M Expenditures $9,222,485 $9,682,977 $9,875,131 $10,373,792 $10,779,192 $11,991,569

5.0% 2.0% 5.0% 3.9% 11.2%
[1] Based on historical results
[2] Costs allocated to the Wastewater Enterprise from other departments based on the City's cost allocation study. 21 | P a g e

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Wastewater Financial Projections
Wastewater projections are shown in APPENDIX E.

San Mateo-Foster City Public Financing Authority:

Projections anticipate $60.65 million of debt issuances between FY 2023 and FY 2024 ($27.6 MM of WIFIA proceeds and $33 MM of SRF loans) to fund WWTP expansion costs. BWA projects that the approved rate increases are adequate to secure projected debt issuances over the next several years.

Table 5 shows debt service estimates for the District’s share of WWTP costs. Annual debt service for the combined total debt issuances is estimated to amount to $5.96 MM by FY 2026.

Table 5
City of Foster City / Estero Municipal Improvement District Debt Service Estimates
Debt Service
2020 WIFIA Loan
2019 Bonds
2023 SRF Loan/Bonds
Total Debt Service
FY 2023
$0
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 $298,110 $2,269,977 $2,616,824 $2,616,839 $2,616,857 $2,616,878 $2,616,901 $2,616,928 $2,616,958 2,084,250 2,085,000 2,084,250 2,086,875 2,087,750 2,086,875 2,084,250 2,084,750 2,088,125 2,084,375 134,332 1,259,604 1,259,573 1,259,540 1,259,508 1,259,475 1,259,443 1,259,4100 0 $2,084,250 $2,383,110 $4,488,559 $5,963,303 $5,964,162 $5,963,273 $5,960,636 $5,961,127 $5,964,496 $5,960,742 22 | P a g e

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

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

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

Table 6
City of Foster City/Estero Municipal Improvement District Strength Classifications into Low, Medium/Domestic, and High Strength Dischargers Low Strength Banks & Financial Institutions
Barber Shops/Hair Salons (hair cutting only)
Post Offices/Government
Retail Stores
Libraries
Schools
Churches, Halls & Lodges
Parking Garages
Warehouses
Medium/Commercial/
Domestic Strength
Residential - All
Appliance Repair
Beauty Shops (hair cutting w/additional treatments)
Dry Cleaners
Nail Salons
Pet Groomers
Commercial Laundromats
Bars & Taverns
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Tasting Rooms
Hospitals - General, Convalescent & Veterinarian
Hotels, Motels, B&Bs, and Vacation Rentals
Offices - Business and Professional
Offices - Medical/Dental
Pools with Restrooms (Clubhouse)
Theaters
Car Washes
High Tech Medical Manufacturing
Light Manufacturing/Industrial
Gym or Health Club
Machine Shops
Service Stations, Garages, Auto Repair Shops
Mini Marts - W/O Dish Washer or Garbage Disposal
Mini Mart with Gas Pumps - W/O Dish Washer or Garbage Disposal Spa with Various Beauty Treatments
High Strength Restaurants
Coffee Shops
Ice Cream Parlors
Catering
Eatery
Bakeries
Butcher Shops
Fish Market/Shop
Markets - with Dish Washer or Garbage
Disposal
Markets - with Bakeries or Butcher Shops
Mini Marts - with Dish Washer or Garbage Disposal
Wineries
Market
Dairies (milk producers, yogurt, ice cream maker)
Specialty Foods Manufacturing (e.g., cheese or olive oil maker) Note: Wastewater users who have Fats, Oils, and Grease (FOG) waste will be put into the High Strength user category
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Table 7 summarizes the assumed wastewater strength factors for the low, medium and high strength groups that are based on typical strengths provided in the SWRCB’s Revenue Program Guidelines. The strength factor for medium strength customers is equivalent to residential or “domestic” strength, of 1.00. The strength factor for low strength is calculated at 0.66 and for high strength is calculated at 2.85 based on the SWRCB guidelines.

Table 7
City of Foster City/Estero Municipal Improvement District Assumed Wastewater Strength Factors
Strength Class
Examples:

LOW LOW-MEDIUM MEDIUM HIGH
Institutional Townhouse, Duplex, Residential Restaurant Bank Apartment, Condo Offices Bakery
Flow (gpd)
BOD1 (mg/l)
TSS2 (mg/l)
200
135
100
168
240
240
200
240
240
200
1000
800
Strength Factor 0.66 0.84 1.00 2.85
Strength Factor Formula SF=(Flow(gpd)/200)*(0.33+(0.34*BOD(mg/l)/240)+(0.33*TSS(mg/l)/240)) WW flows and strengths based on State Water Resources Control Board's Revenue Program Guidelines 1 "BOD" stands for Biochemical Oxygen Demand
2 "TSS" stands for Total Suspended Solids
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Table 8 summarizes the mass-balance analysis for the City’s wastewater system and calculates the wastewater rates for each customer class. Single family residences are assumed to have an average daily (dry weather) flow of 200 gallons per day (gpd). The flow estimate is based on the State Water Resources Control Board Revenue Program Guidelines Table G-1, which estimates flow in gallons per day per person for residential dwelling units to be up to 75 gallons.

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

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

The results agree well with the estimated daily flow at 2.61 million gallons per day (mgd) and the measured flow at 2.37 mgd.
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Table 8
City of Foster City/Estero Municipal Improvement District Summary of Wastewater Users by Customer Class
FY 2023 Estimate
EDU x FlowCustomer Class Calculated
EDUs1 ADWF Flow
(gal/day)
ADWF Flow
(gal/day)
BOD3
(mg/l)
TSS4
(mg/l)
Current
Rate
Residential
Single Family Residential
Townhouse/Duplex
Apartment/Condos
4,535
2,277
6,906
200
168
168
907,000
382,536
1,160,208
240
240
240
240
240
240
127.06
106.73
106.73
Subtotal 2,449,744
Use
Accounts (gal/day) Flow Factor
Estimated Calculated
ADWF Flow
(gal/day)
26,426
BOD3
(mg/l)
135
240
1000
TSS4
(mg/l)
100
Current
RateCommercial
Low Strength
Medium/Domestic Strength
High Strength
35 171
42 40,655
198,866
48,957
65%
52%
70%

5.34 8.12

23.09 103,329
34,270
240
800
Subtotal 288,478 164,024
2,613,768
2,367,806
Totals
Check Against Lowest Actual Monthly Avg. Day Flow (May 2014 from LS 59 Flow Log):
1 "EDU" stands for Equivalent Dwelling Unit
2 "ADWF" stands for Average Dry Weather Flow
3 "BOD" stands for Biochemical Oxygen Demand
4 "TSS" stands for Total Suspended Solids
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APPENDIX D
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APPENDIX E
Table 1
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection
Five Year Projection
2026
Extended Year Projection
2030 2031 20322023 2024 2025 2027 2028 2029 2033
Assumptions:

Interest Earnings Rate
Revenue Increase from Growth
Rate Adjustment

0.50%

0.00%

2.00%

0.37%

3.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%

2.00%

0.37%

2.00%
Monthly Service Charge for Single Family $127.06 $130.87 $133.49 $136.16 $138.88 $141.66 $144.49 $147.38 $150.33 $153.34 $156.41 Beginning O&M Fund Balance $22,698,115 $25,800,900 $12,471,000 $5,118,900 $7,188,000 $10,350,600 $12,892,800 $15,709,000 $18,706,600 $21,992,000 $25,484,300 Operating Revenues
Service Charges
Connection Fees [1]
Interest Earnings [2]
Other Revenue
20,121,293 20,799,000 21,291,000
50,000
21,795,000
50,000
22,311,000
50,000
22,839,000
50,000
23,379,000
50,000
23,932,000
50,000
24,498,000
50,000
25,078,000
50,000
25,671,000
50,00045,500
113,491
1,000
50,000
516,000
1,000
249,000
1,000
102,000
1,000
144,000
1,000
207,000
1,000
258,000
1,000
314,000
1,000
374,000
1,000
440,000
1,000
510,000
1,000
Operating Revenue 20,281,283 21,366,000 21,591,000 21,948,000 22,506,000 23,097,000 23,688,000 24,297,000 24,923,000 25,569,000 26,232,000 Non Operating Revenue
Bond / Loan [3]
Non Operating Revenue
46,418,785 14,235,063
46,418,785 14,235,063
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total Revenue 66,700,068 35,601,063 21,591,000 21,948,000 22,506,000 23,097,000 23,688,000 24,297,000 24,923,000 25,569,000 26,232,000 Operating Expenses
Employee Services 2,883,682
1,116,826
266,126
661,550
3,400,000
894,301
2,838,710
1,167,852
266,126
733,550
3,700,000
976,739
2,952,258
1,197,048
272,779
3,070,348
1,226,974
279,598
3,193,162
1,257,648
286,588
3,320,888
1,289,089
293,753
3,453,724
1,321,316
301,097
3,591,873
1,354,349
308,624
3,735,548
1,388,208
316,340
3,884,970
1,422,913
324,249
4,040,369
1,458,486
332,355
Internal Services (from City)
Internal Services -ERF
Services & Supplies
EMID Share WWTP O&M
Reallocation
751,889 770,686 789,953 809,702 829,945 850,694 871,961 893,760 916,104 3,700,000
1,001,157
9,875,131
4,000,000
1,026,186
10,373,792
4,200,000
1,051,841
10,779,192
5,200,000
1,078,137
11,991,569
5,300,000
1,105,090
12,311,172
5,500,000
1,132,717
12,738,257
5,600,000
1,161,035
13,073,092
5,800,000
1,190,061
13,515,953
6,000,000
1,219,813
13,967,127Operating Expenses 9,222,485 9,682,977
Operating Net Revenue 11,058,798 11,683,023 11,715,869 11,574,208 11,726,808 11,105,431 11,376,828 11,558,743 11,849,908 12,053,047 12,264,873 Capital Expenses
Transfer Out - Capital Improvement Fund
EMID Share WWTP Expansion
Capital Expenses
5,250,000 11,500,000
47,040,566 25,364,852
52,290,566 36,864,852
11,500,000
3,079,383
14,579,383
2,600,000
941,812
3,541,812
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
2,600,000
0 2,600,000
Annual Debt Service
Debt Service
2,084,250
2,084,250
2,383,110
2,383,110
4,488,559
4,488,559
5,963,303
5,963,303
5,964,162
5,964,162
5,963,273
5,963,273
5,960,636
5,960,636
5,961,127
5,961,127
5,964,496
5,964,496
5,960,742
5,960,742
5,959,868
5,959,868
Debt Coverage [4] 5.31 4.90 2.61
28,943,073
(7,352,073)
5,118,927

1.94 19,878,907
2,069,093
7,187,993

1.97 19,343,354
3,162,646
10,350,646

1.86 20,554,842
2,542,158
12,892,758

1.91 20,871,808
2,816,192
15,708,992

1.94 21,299,384
2,997,616
18,706,616

1.99 21,637,588
3,285,412
21,992,012

2.02 22,076,695
3,492,305
25,484,305

2.06 22,526,995
3,705,005
29,189,305
Total Expenditures 63,597,301 48,930,939
3,102,767 (13,329,876)
25,800,882 12,471,024
Revenues Less Total Expenditures
Ending O&M Fund
Cash Fund Reserve Test: Minimum Fund
Balance > 25% O&M Expenses
Year-end O&M Fund
25% Operating Expenses
# of Days O&M in Reserves
25,800,882 12,471,024 5,118,927
2,468,783
189
7,187,993
2,593,448
253
10,350,646
2,694,798
350
12,892,758
2,997,892
392
15,708,992
3,077,793
466
18,706,616
3,184,564
536
21,992,012
3,268,273
614
25,484,305
3,378,988
688
29,189,305
3,491,782
763
2,305,621
1,021
2,420,744
470
Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Growth projections for planning purposes
[2] Projected interest calculated as 2% of the Beginning Fund Balance of the Wastewater O&M Fund. [3] Calculated by William Euphrat Municipal Finance, Inc. [4] Minimum requirement debt service covereage requirement = 1.25x 30 | P a g e

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Table 2
City of Foster City / Estero Municipal Improvement District Projected Wastewater Rate Impacts
Current
FY2023
Projected - Fiscal Year Ending June 30Projected Rates
FY2024 FY2025 FY2026 FY2027 FY2028
% Rate Increase 3.00% 2.00% 2.00% 2.00% 2.00%
Residential (flat monthly rate)
Single Family
Increase (Decrease)
$127.06
$106.73
$106.73
$130.87 $133.49 $136.16 $138.88 $141.66

3.81 2.62 2.67 2.72 2.78
Townhouse/Duplex
Increase (Decrease)
$109.93 $112.13 $114.37 $116.66 $118.99

3.20 2.20 2.24 2.29 2.33
Apartment/Condominium (Pools w/ Restrooms) $109.93 $112.13 $114.37 $116.66 $118.99 Increase (Decrease) 3.20 2.20 2.24 2.29 2.33
Commercial (rate per ccf of water use )
High Strength
Increase (Decrease) per ccf
$23.09
$8.12
$5.34
$23.78

0.69 $24.26

0.48 $24.75

0.49 $25.25

0.50 $25.76

0.51 Medium/Domestic Strength
Increase (Decrease) per ccf
$8.36

0.24 $8.53

0.17 $8.70

0.17 $8.87

0.17 $9.05

0.18 Low Strength $5.50 $5.61 $5.72 $5.83 $5.95
Increase (Decrease) per ccf 0.16 0.11 0.11 0.11 0.12
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CHART C
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APPENDIX F
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EXHIBIT B
FY 2023-2024 Wastewater Rates
Recommended Rates FY 2024
Residential (flat monthly rate)
Single Family $130.87
Townhouse/Duplex $109.93
Apartment/Condominium (Pools w/Restrooms) $109.93
Commercial (rate per ccf of water use)
High Strength $23.78
Medium/Domestic Strength $8.36
Low Strength $5.50

9.1 Exhibit B - FY 2023-2024 Wastewater Rates

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Prepared Date 5/5/2023 City of Foster City, CA
Accounts Payable Check Register