CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF FEBRUARY 26, 2024
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The duly called and noticed special meeting of the City Council of the City of Foster City (City), sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID) of February 26, 2024, was called to order at 6:30 p.m. by Mayor/President Sullivan.
This meeting was held as a hybrid meeting.
ROLL CALL
The Communications Director/City Clerk/Recording Secretary called the roll:
PRESENT:
Councilmembers/ex officio Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan.
ABSENT: None.
STAFF PRESENT: Stefan Chatwin, City/District Manager; Benjamin Stock , City Attorney/District Legal Counsel ; Marlene Subhashini, Assistant City/District Manager; Sofia Mangalam, Community Development Director; Edmund Suen , Finance Director; Diane Pitman, Administrative Services Director; Tracy Avelar, Police Chief; Andrew Brozyna, Public Works Director ; Waqas Hassan, Assistant Finance Director; Rob Lasky, IT Manager ; Katherine Mendoza, Deputy City Clerk; Shuli Chen, Video Technician ; and Priscilla Schaus, Communications Director/City Clerk.
STUDY SESSION
Mayor/President Sullivan recessed the meeting into Study Session.
2ND
QUARTER FY 2023-2024 FINANCIAL UPDATE. MINUTE ORDER NO. 1962.
Finance Director Suen presented the staff report.
Discussion ensued.
Motion by Councilmember/Director Hindi seconded by Councilmember/Director Froomin, and carried unanimously, 5-0-0, to adopt Minute Order No. 1962, to receive and accept the 2nd Quarter FY 2023-2024 Financial Update.
PREPARATION OF THE FY 2024 -2025 ANNUAL BUDGET AND FIVE -YEAR FINANCIAL PLAN. MINUTE ORDER NO. 1963.
Finance Director Suen and City/District Manager Chatwin presented the staff report.
Discussion ensued.
Motion by Councilmember/Director Froomin, seconded by Vice Mayor/Vice President Jimenez, and carried unanimously, 5- 0-0, confirming the following assumptions and policy direction in the development of the FY 2024-2025 annual budget and financial plan:
1. Assess staffing levels as needed to meet City Council’s strategic directives with a focus on filling the Economic Development Manager position, continue to provide the same level of services to the community, and provide a detailed line- item budget for Cit y Council review at the May 13, 2024 Budget Study Session that takes into account temporary budgetary impacts during the Recreation Center closure;
2. Present additional information on Business License Tax (BLT) potential ballot measure for the November 2024 election, explore additional revenue sources through a holistic approach and economic development strategies including concession opportunities. Explore a possible vacancy tax or rental registration to reduce the number of vacant properties/storefronts. Continue to look at options to diversify revenues including a local add- on rate to sales tax over the next couple of years;
3. Include a 3% placeholder in personnel services costs for annual wage increases as well as other provisions of current MOUs;
4. Employ a “pay as you go” funding model to proactively fund long- term capital improvement projects from existing resources and operating transfers into capital improvement reserves and assess the capital improvement project list to determine which projects should be prioritized based on critical infrastructure needs;
5. Explore options to fully fund the City’s Longevity and Public Employees’ Medical and Hospital Care Act (PEMHCA) liabilities and bring to Council additional information and analysis of establishing irrevocable trust(s); and
6. Amend the General Fund Reserve Policy to maintain a minimum General Fund reserve of 50% of annual operating expenditures, continue to maintain the $2 million reserve levels in each of the City, Water, and Wastewater CIP Funds, and maintain minimum Water and Wastewater Operating Fund reserve levels of 25% of annual operating expenses.
Meeting recessed into study session at 6:33 p.m. and reconvened at 8:33 p.m.
ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Sullivan adjourned the meeting. Meeting adjourned at 8:33 p.m.