Agenda packet — Foster City City Council, March 25, 2024 (part 1 of 2)

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to: https://fostercityorg.zoom.us/j/82592136594 To dialin via phone:
16694449171 or
14086380968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dialin attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to: [email protected] and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, March 25, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

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

4. STUDY SESSION
a) Staff Report
b) By Minute Order, Receive and Accept and Provide Policy Direction

4.1. Five Year Capital Improvement Program – FY 20242025 to FY 20282029

4.2. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for the Preparation of the City’s FY 20242025 Budget and FiveYear Financial Plan

4.3. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for the Preparation of the District’s FY 20242025 Budget and FiveYear Financial Plan

4.4. Review of Projected Water Rates for FY 20242025 and Policy Direction for Rate Notification Under Proposition 218

4.5. Review of Projected Wastewater Rates for FY 20242025

4.6. Updates to Master Fees and Service Charges Schedule for FY 20242025

4.7. Internal Service Funds Summary

4.8. Compensated Absences Internal Service Fund

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

4.10. Equipment Replacement Fund Budget and Internal Service Charges for FY 20242025

4.11. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 20242025

4.12. Building Maintenance Fund Budget and Internal Service Charges for FY 20242025

4.13. SelfInsurance Fund Budget for FY 20242025

4.14. Information Technology Internal Service Fund Budget for FY 20242025

5. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 2863250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

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

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

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctvlivestream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, March 25, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

4. STUDY SESSION
a) Staff Report
b) By Minute Order, Receive and Accept and Provide Policy Direction

4.1. Five Year Capital Improvement Program – FY 20242025 to FY 20282029

4.2. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for the Preparation of the City’s FY 20242025 Budget and FiveYear Financial Plan

4.3. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for the Preparation of the District’s FY 20242025 Budget and FiveYear Financial Plan

4.4. Review of Projected Water Rates for FY 20242025 and Policy Direction for Rate Notification Under Proposition 218

4.5. Review of Projected Wastewater Rates for FY 20242025

4.6. Updates to Master Fees and Service Charges Schedule for FY 20242025

4.7. Internal Service Funds Summary

4.8. Compensated Absences Internal Service Fund

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

4.10. Equipment Replacement Fund Budget and Internal Service Charges for FY 20242025

4.11. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 20242025

4.12. Building Maintenance Fund Budget and Internal Service Charges for FY 20242025

4.13. SelfInsurance Fund Budget for FY 20242025

4.14. Information Technology Internal Service Fund Budget for FY 20242025

5. ADJOURNMENT
The public is invited to attend.

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

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, March 25, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

4. STUDY SESSION
a) Staff Report
b) By Minute Order, Receive and Accept and Provide Policy Direction

4.1. Five Year Capital Improvement Program – FY 20242025 to FY 20282029

4.2. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for the Preparation of the City’s FY 20242025 Budget and FiveYear Financial Plan

4.3. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for the Preparation of the District’s FY 20242025 Budget and FiveYear Financial Plan

4.4. Review of Projected Water Rates for FY 20242025 and Policy Direction for Rate Notification Under Proposition 218

4.5. Review of Projected Wastewater Rates for FY 20242025

4.6. Updates to Master Fees and Service Charges Schedule for FY 20242025

4.7. Internal Service Funds Summary

4.8. Compensated Absences Internal Service Fund

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

4.10. Equipment Replacement Fund Budget and Internal Service Charges for FY 20242025

4.11. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 20242025

4.12. Building Maintenance Fund Budget and Internal Service Charges for FY 20242025

4.13. SelfInsurance Fund Budget for FY 20242025

4.14. Information Technology Internal Service Fund Budget for FY 20242025

5. ADJOURNMENT
The public is invited to attend.

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

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

3 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, March 25, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

4. STUDY SESSION
a) Staff Report
b) By Minute Order, Receive and Accept and Provide Policy Direction

4.1. Five Year Capital Improvement Program – FY 20242025 to FY 20282029

4.2. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for the Preparation of the City’s FY 20242025 Budget and FiveYear Financial Plan

4.3. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for the Preparation of the District’s FY 20242025 Budget and FiveYear Financial Plan

4.4. Review of Projected Water Rates for FY 20242025 and Policy Direction for Rate Notification Under Proposition 218

4.5. Review of Projected Wastewater Rates for FY 20242025

4.6. Updates to Master Fees and Service Charges Schedule for FY 20242025

4.7. Internal Service Funds Summary

4.8. Compensated Absences Internal Service Fund

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

4.10. Equipment Replacement Fund Budget and Internal Service Charges for FY 20242025

4.11. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 20242025

4.12. Building Maintenance Fund Budget and Internal Service Charges for FY 20242025

4.13. SelfInsurance Fund Budget for FY 20242025

4.14. Information Technology Internal Service Fund Budget for FY 20242025

5. ADJOURNMENT
The public is invited to attend.

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

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

4 DATE: March 25, 2024

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: Andrew Brozyna, Public Works Director/City Engineer Derek Schweigart, Parks and Recreation Director
DEPARTMENT: Public Works
Parks and Recreation
SUBJECT: FIVE YEAR CAPITAL IMPROVEMENT PROGRAM – FY 2024- 2025 TO FY 2028-2029

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors review the proposed Five-Year Capital Improvement Program – FY 2024-2025 to FY 2028-2029 - and authorize City/District staff to include the program in the FY 2024-2025 budget as presented, adjusted, and recommended.

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

The proposed five-year capital improvement plan for the period starting FY 2024-2025 is comprised of forty-seven (47) projects that require future funding, including additional funding for fourteen (14) previously authorized projects and thirty-three (33) new projects

4.1 4.1 Staff Report

5 over the five-year term. There are descriptions of each project in Attachment 1 that include proposed funding sources. Also included in Attachment 1 are status updates for on-going projects that are not recommended for additional funding, such as the Levee Protection Planning and Improvements Project. A snapshot of all 67 current and five-year proposed projects can be found on Table D, on pages 27-29 of Attachment 1.

BACKGROUND/ANALYSIS
The proposed FY 2024-2025 to FY 2028-2029 CIP plan consists of forty-seven (47) projects to be funded over the next five years from various funding sources. The plan is organized into the following categories: Building, Parks, Stormwater/Lagoon, Streets/Traffic, Water, and Wastewater.

The plan consists of thirty-three (33) new projects and fourteen (14) existing projects.

Status updates for multi-year projects that do not require additional funding are also included in the CIP document (Attachment 1).

While the Capital Improvement Plan forecasts projects for a five-year period, the City Council approves appropriation of funding on an annual basis only. Table 1 provides a summary of the FY 2024-2025 projects that are recommended for appropriation and their identified funding sources.

Table 1: FY 2024-2025 CAPITAL IMPROVEMENT RECOMMENDED APPROPRIATION

PROJECT NAME FUNDING
SOURCE*
FY 24-25

APPROPRIATION
BUILDING PROJECTS 1,122,054
(CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (2021-
2022) CC $922,054
(CIP 301-708) RENOVATE ELEVATORS IN CITY
BUILDINGS (2022-2023) CC $200,000
PARKS PROJECTS 11,642,750
(CIP 301-678) RECREATION CENTER REBUILD (2017-
2018)
CC/ PIL**/ PIF/
BMF $9,092,750
(CIP 301-712) EDGEWATER PARK SOFTBALL AND
SOCCER SYNTHETIC RESURFACING (2023-2024) CC $350,000
(CIP 301-714) SEA CLOUD MAINTENANCE SHED (2023-
2024) CC $2,000,000***
(NEW CIP) CITY HALL EXTERIOR REHABILITATION
(2024-2025) CC $200,000
STREET / TRAFFIC SIGNAL PROJECTS 3,550,000
(301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (2020-
2021) MW $1,000,000
(NEW) SUBSTRUCTURE AND SUPERSTRUCTURE
BRIDGE IMPROVEMENTS (2023-2024) SB1 $750,000
(NEW) STREET REHABILITATION AND PARK PATHWAY
RESTORATION (2024-2025)
MA/ GT/ CC $1,800,000

4.1 4.1 Staff Report

6 STORM WATER/LAGOON PROJECTS 500,000
(CIP 301-718) LAGOON PUMP STATION BUILDING
REHABILITATION (2023-2024) CC $470,000
(NEW) LAGOON INTAKE STRUCTURE REHABILITATION
(2024-2025) CC $30,000
WATER PROJECTS 0
(NONE) 0
WASTEWATER PROJECTS 10,625,263
(401-652) WASTEWATER TREATMENT PLANT MASTER
PLAN IMPROVEMENTS (2015-2016) CWW $8,225,263
(CIP 455-806) EMERGENCY GENERATOR
REPLACEMENTS (2021-2022) CWW $1,900,000
(CIP 455-710) SHELL BRIDGE SANITARY SEWER
FORCE MAIN REHABILITATION (2022-2023) CWW $500,000
TOTAL, ALL PROJECTS (FY 2024-2025 Appropriation) 27,440,067 Notes on Table 1:
* CC=CIP City; PIF=Parks Facilities Infrastructure Fees; BMF=Building Maintenance Internal Service Fund; CWW=CIP Wastewater; GT=Gas Tax; MA=Measure A; MW=Measure W; SB1=CA Road Repair and Accountability Act of 2017 ** Elimination of CIP 301-655 Bocce Court Expansion Project was identified as a potential funding source for CIP 301-678 Recreation Center Rebuild Project. Partial funding for CIP 301-655 came from Park-in-Lieu fees. Although this funding is shown in the five-year CIP, Staff is currently assessing whether the Recreation Center Rebuild Project is eligible to utilize this funding source.
*** Based on the City Council’s direction, staff is appropriating these funds from the City CIP Fund 301 for FY 2024-2025.

However, based on the FY 2024-2025 CIP priorities and staff resources, staff proposes this project be deferred to a future fiscal year.

Full project descriptions and details on these projects, as well as projects in years two through five of the five-year plan, the status of ongoing CIP projects that do not require appropriation in FY 2024-2025, and the fiscal impact to each fund can be found in Attachment 1, the Capital Improvement Program FY 2024-2025 to FY 2028-2029.

STRATEGY FOR THE FUTURE
This Capital Improvement Plan is both fiscally and operationally ambitious. Completing and closing existing projects is a top priority for the Public Works Department. Although this Council item addresses Council appropriations for FY 2024-2025 and the plan for funding projects for the additional four years after that, staff has included Attachment 2, which is a list of the highest priority projects that Public Works Engineering plans to move forward in the upcoming fiscal year. The Executive Leadership Team is supportive of these projects as the highest priorities for FY 2024-2025.

Staff’s highest priority in FY 2024-2025 will be to complete and close out those projects currently under construction. The highest priority project in the design phase is the Lagoon Pump Station Rehabilitation and adding pump redundancy.

4.1 4.1 Staff Report

7 While the Engineering Division does rely on consulting services for technical assistance, City staff is key to managing maintenance and Capital Projects Citywide. While the City Council has been proactive in authorizing staffing levels to meet this goal, maintaining staffing levels in the current employment climate has been a major challenge over the past four (4) years. Recruiting and retaining highly skilled engineering and professional staff will continue to be key to the Department’s ability to execute, complete and close projects. The Human Resources and Public Works teams continue to work to recruit for and fill key vacancies that are, and will continue to be, essential to the Capital Project process.

CEQA
Not Applicable

FISCAL IMPACT
To the extent possible, every effort has been made to program funding for the Capital Improvement Program Plan with non-General Fund funding sources. In Fiscal Year 2024- 2025, of the total $27,440,067, the General Fund has been identified as the funding source for $10,379,304, or just under 38%, with the remainder identified from the Wastewater Enterprise, internal service funding, state and federal grant funding and development impact fees.

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

ATTACHMENTS
Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029 oPages 1-15: Status Updates of all currently open projects, not recommended for additional funding
oPages 16-17: Overview of Capital Improvement Plan Development Process oPages 18-29: Summary Project Table and Backup Tables A-D oPages 30-82: Full project descriptions and details of projects recommended for funding in FY 2024-2025 through FY 2028-2029
Attachment 2 - Priority Projects for Active and Proposed CIP’s Through FY 2024-2025

4.1 4.1 Staff Report

8 Capital Improvement Program
The Capital Improvement Program (CIP) consists of projects to maintain and enhance the City/District’s infrastructure of roadways, sidewalks, utilities, structures, and facilities for the benefit of the community.

The primary objective of the CIP is to develop and implement projects to ensure continued and reliable delivery of service to meet the City/District’s needs. The following is a summary of active projects to be managed during Fiscal Year 2023-2024.

Ongoing Projects:
(CIP 301-635, Budget $919,169) Median Modifications – Foster City Boulevard at Chess Drive – Multi-Project #3 (2013-2014)
The project addresses improvements at the intersection of Foster City Boulevard and Chess Drive. The project includes lengthening the northbound left-turn lanes on northbound Foster City Boulevard at Chess Drive to reduce the likelihood of traffic queues extending out of the turn lanes into the through traffic lanes on Foster City Boulevard.

On August 4, 2014, the City Council adopted Resolution No. 2014-86 authorizing an agreement with BKF Engineers, Inc. to prepare construction contract documents and provide construction support services for both CIP 301-635 and CIP 301-637 due to the scope similarities and proximity to each other. Design is complete and the Caltrans encroachment permit has been issued to the City. An easement agreement has been executed between Gilead Sciences and the City to allow for the construction of the improvements.

The Multi-Project Roadway Improvements were funded by four large developments based on each development's contribution to traffic impacts. The funds were identified in each development's Master Development Agreement and were allocated to CIP 301-635 and CIP 301-637. Construction is anticipated to commence in summer 2024.

Project Timeline:

Design: Completed
Construction: FY 2024-2025

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

9 (CIP 301-637, Budget $2,690,000) Road Widening - Foster City Boulevard and Chess Drive – Multi- Project #4, #7, and #8 (2013-2014)
The project addresses improvements at the intersection of Foster City Boulevard and Chess Drive. The improvements include adding a northbound right-turn lane on Foster City Boulevard at Chess Drive; lengthening the westbound left turn lane on Chess Drive at Foster City Boulevard; and adding a westbound lane on Chess Drive east of Foster City Boulevard.

Project Timeline:

Design: Complete
Construction: FY 2024-2025
(CIP 455-652, Budget $154,294,219) Wastewater Treatment Plant Master Plan Improvements (2015-2016)
In 2022 (year 9), the CWP continued to focus on the construction phase of the WWTP project to assist with full project delivery and execution of major improvement projects. Some notable accomplishments include the following:

WWTP Upgrade & Expansion Project
• Submitted the quarterly reports for Water Infrastructure Finance and Innovation Act (WIFIA) loan compliance.
• RHAA (Consultant) completed the final design for the WWTP interpretive signs. • Continued revisions to the WWTP Final Parcel Mat to comply with right of way dedications.

GMP-1 (Site Preparation, Electrical and Storm Drain System Improvements for GMP3) • Continued project closeout.

GMP-2 (Foundations for GMP3)
• Continued project closeout.

GMP-3 (Nutrient Removal and Wet Weather Flow Management Upgrade and Expansion) • Completion of the installation of the Membrane Permeate (MP) line and the Secondary Effluent line (SE) in the East Corridor.
• Completion of formwork, rebar installations and concrete pours for the walls and decks in all of the process areas including Area 51 (headworks); Area 52 (Primary clarifies; Area 54 (Bio-Actiflo); Area 55 (BNR); Area 56 MBR; Area 64 (Odor Control); and Area 70 (Chemical Storage Area). • Completion of the Administration Building including exterior framing, installation of roof, window and interior walls, utilities, exterior siding and installation of interior improvements. • Continued the installation of electrical and mechanical equipment in Areas 51, 52, 53, 55, 56, 64, and 70.
• Continued the installation of the canopy and tanks in Area 70 • Continued the installation of exterior and interior improvements for the new Warehouse. • Completed the improvements to the Sodium Hypochlorite System.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

10 • Continued the installation of improvements to the Sodium Bisulfate System • Continued the improvements to the Chlorine Contact Basins. • Completed the leak testing and protective coating for all the Area 51 basins and channels. • Installed the primary screens, grit chambers, and grit wash equipment in Area 51 • Began leak testing of the basins in Areas 52, 53, 55 and 56. • Completed the installation of the fire protective loop in Detroit Drive.

Immediate Action Project Package 2 – Improvements to the solids processes • Completed modifications to the new hopper.
• Worked with the contractor to implement recommendations to resolve the cake pump and hopper sensor issues.
• Immediate Action Project Package 3 – Improvements to the effluent pump station, site waste pump station, and sludge heating and recirculation pumping. Awarded the Construction Contract to Mountain Cascade in May 2023 (first 6 months of contract is procurement). • Procured Townsend Management to provide Construction Management services.

Annual Major Components 6 & 23
• Natural Gas Pipeline Replacement (6 & 23) (replace existing 3-inch gas line) - Completed the project in November 2022.
• Digester Transfer Pump Improvements: Construction award November 2023 • 3 Water Pumping and Ferric to Combined Sludge Improvements: 60% design submittal provided by Carollo.
• Other AMC Packages: Biosolids and Energy Management Plan; DAFT Corrosion Improvements; Digester 1 Improvements; Centrifuge and Centrifuge Feed Pump Replacement; Solids Handling Systems I&C Improvements
Erler & Kalinowski, Inc. is continuing to provide technical support services for EMID. Foster City’s share of the CWP is estimated at $164 million dollars over the life of the project.

Project Timeline:

Design: Ongoing
Construction: Ongoing through FY 2024-2025
(CIP 327-657 (formerly CIP 301-657), Budget $95,000,000) Levee Protection Planning and Improvements Project (2015-2016)
The project has achieved a major flood protection milestone: As of July 19, 2023, all of the flood protection elements for the project have been completed. Staff is working with the design team to prepare the required submittals to FEMA to meet the accreditation necessary for updating the flood insurance rate maps (FIRM).

The Bay Trail was re-opened to the public in three different phases:

1. Phase 1 (Southern portion of project to Shorebird Park) - Opened March 27, 2023.

2. Phase 2 (Shorebird Park to Bridgeview Park) - Opened August 23, 2023

3. Phase 3 (Bridgeview Park to the City limits at the Mariner’s Point Golf Course) - Opened October 7, 2023.

Project substantial completion was issued on October 6, 2023. Punch list items have been completed, and final completion is anticipated to be issued in February 2024. Remaining work includes post construction landscape maintenance over the first year following plant installation; post-construction environmental monitoring for three years; easement acquisition at the various access points that abut up against private developments; irrigation and landscaping adjustments at adjacent properties; pursuit of FEMA accreditation; and establishment of a corrosion monitoring schedule for the sheet pile wall post construction.

Project Timeline:

Design: Complete
Construction: Complete

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

11 (CIP 405-660, Budget $5,800,000) Water Tanks and Facilities Improvements (2016-2017) The water storage tanks provide water storage for emergencies, peak use periods, and firefighting. The project addresses improvements to the three steel water storage tanks and the water booster pump station.

On April 4, 2020, the District Board adopted Resolution No. 3508 authorizing the combining of the Water Tanks Improvements Project (which was comprised of CIPs 405-660, 405-670, and 405-688) with 405-687 Seismic Improvements at Water Booster Pump Station Project; and renaming the project CIP 405-660 Water Tank and Facilities Improvements Project. The scope of work of the combined projects consists of (1) refurbishing the 3 steel tanks by repairing corroded steel and applying new coating to the interior and exterior surfaces; (2) installing water mixing devices inside the 3 steel tanks to prolong water quality; (3) seismically retrofitting the existing drainpipes and installing new drainpipe at the side of the tanks; and (4) reinforcing the door frame to the water booster pump station and installing flexible connections on the underground utilities entering the building.

On November 6, 2023, the District Board adopted resolution 3748 awarding the project to Manito Construction. Construction began in February 2024 and is expected to continue into spring of 2025.

Project Timeline:

Design: Completed
Construction: FY 2023-2024-FY 2024-2025
(CIP 301-677, Budget $120,000) Library Exterior Wall Sealing and Tile Installation (2017-2018) This project will complete the Library building exterior improvements on the southwest side of the building.

Staff has cured prior water intrusion issues by removing soil away from the northwest wall of the building.

Half of the area has been re-landscaped in house by Parks staff into an attractive drought tolerant and water efficient habitat garden.

This project will provide for permanently removing the earth around the southwest wall of the library building, sealing the wall, installing wall drains and drainpipes, re-grading the earth around the exterior of the building, removing trees, and installing new landscaping and sidewalk on the north side of Civic Center Drive. The roots of the trees adjacent to the north wall of the library could contribute to water intrusion as well as eventual long-term damage to the building structure in the future. This CIP would also remove the trees.

Funding in the amount of approximately $38,000 from this project was utilized in FY 2023-2024 to improve the curb ramps at the Library/Community Center building to current Americans with Disability Act (ADA) standards.

Project Timeline:

Design: FY 2025-2026 Construction: FY 2026-2027

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

12 (CIP 301-678, Budget $55,374,250) Recreation Center Rebuild Project (2017-2018) On January 23, 2019, the City Council accepted the Final Recreation Center Master Plan Conceptual Design Report. On January 31, 2022, the City Council directed staff to 1) Accept the Recreation Center and Parks System Survey results; 2) Proceed with a “build-to-budget” option for the Recreation Center in an amount not-to-exceed $55 million; and 3) Proceed with utilizing $36 million from the Capital Asset Acquisition and Replacement Fund and $19 million from the General Fund Reserves for the total not-to- exceed budget of $55 million for rebuilding the Recreation Center.

On November 21, 2022, the City Council awarded an agreement with Group 4 Architecture, Research + Planning, Inc. (“Group 4”) for professional design, bidding, and construction support services. The design phase began in January 2023 with the award of a construction management contract going to Griffin Structures.

On September 18, 2023, the City Council accepted the schematic design budget estimate and provided direction on additional project enhancements. The City Council approved the temporary facilities and transition plan on November 6, 2023.

The current Project budget estimate is $65,943,000. The City Council originally appropriated $55,000,000 to the existing $300,000 planning budget, then added an appropriation of $74,250 on 4/17/2023 for Boardwalk Master Planning Services. The remaining $9,559,750 is included from a number of sources in the FY 2024-2025 CIP.

The design is anticipated to be completed in the Spring of 2024. Construction is anticipated to begin in September 2024 and is estimated to take 22 months.

Project Timeline:

Pre-Design/Design: FY 2022-2023 – FY 2023-2024
Construction: FY 2024-2025 – FY 2026-2027
(CIP 301-682, Budget $484,500) Park System Master Plan (2018-2019) The project was created in Fiscal Year 2018-2019 to develop a strategic comprehensive plan for maintenance, replacement and upgrade of the City’s individual parks and park system as a whole.

In December 2018, the City Council adopted Resolution No. 2018-107 authorizing an agreement with Placeworks, Inc. to prepare the Parks Master Plan Study. On April 15, 2019, City Council by Minute Order No. 1599, accepted a report on the status of the Parks Master Plan Study, after which it discharged Placeworks from the remainder of the scope of work of their agreement and directed Staff to continue to maintain and replace park infrastructure “as is.” The project was deprioritized during the Covid pandemic.

In Spring 2021, the City Council expressed a renewed interest in engaging a consultant to prepare a strategic and comprehensive Parks Master Plan. Additional funds were approved in the FY 2021-2022 Annual Budget, specifically for the purpose of increasing community engagement for the project. On January 31, 2022, the City Council accepted the Parks Survey results. On December 18, 2023, the City Council .approved issuing an RFP for consulting services for the study which is underway.

Project Timeline:

Community Engagement/Survey: November/December 2021
Plan Development: FY 2023-2024 and on-going

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

13 (CIP 301-685, Budget $2,040,000) HVAC Improvements in City Buildings (2018-2019) Due to the age of the Heating/Ventilation/Air Conditioning (HVAC) system at the Corporation Yard and changes in HVAC technology for this type of office building, the existing system cannot be refurbished and needs to be replaced.

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

This project is currently being monitored and prioritized based on staff capacity.

Project Timeline:

Design/Construction: 2024/2025 to 2025/2026
(CIP 301-690, Budget $550,000) Seismic Improvements at Lagoon Pump Station (2019-2020) The Lagoon Pump Station located at the City/District’s Corporation Yard houses two (2) engines and pumps used to pump water from the lagoon to the bay and controls the water level in the lagoon.

G&E Engineering Systems, Inc., completed a seismic vulnerability assessment of the building in 2013.

The assessment concluded that the building meets the seismic code and recommended various improvements including (1) reinforcing the door frame of the roll-up door, (2) isolating the tidal channel walls from the north walkway of the building, (3) installing flexible connections on the underground utilities entering the building, and (4) securing equipment within the building. In addition, following an investigation of the building in summer 2019, staff identified significant areas of spalling concrete and rusting reinforcing steel (rebar) along the concrete walkway connected to the building.

In April 2020, the City Council awarded a contract to Murray Smith to perform professional engineering services for the project. Murray Smith prepared a preliminary design report in May 2021, validating the 2013 study, which included recommendations to perform a future in-depth evaluation to include additional structural evaluation of the building and below water structures based on current building code standards beyond the scope of this project and provided temporary repair recommendations for the walkway until a comprehensive assessment could be performed. A separate CIP (CIP 301-718) has been created to address the rehabilitation of the lagoon pump station building in its entirety including addressing the reinforcement of the door frame and concrete walkway. This project will address items #2-4 from the original assessment. This project was put on hold in calendar year 2022 while staffing vacancies were being filled in the Engineering Division.

On November 6, 2023, the City Council adopted resolution 2023-106 awarding the project to Manito Construction. Construction began in February 2024 and is expected to run into spring of 2025.

Project Timeline:

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

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

14 (CIP 455-695, Budget $1,800,000) Lift Station 59 Effluent Line Improvements (2020-2021) The project consists of improvements to the effluent line at Lift Station 59, located in the District’s Corporation Yard, including replacing the existing ultrasonic effluent flow meter with a new electromagnetic flow meter; installing a permanent emergency bypass to provide operational flexibility and redundancy; and replacing the existing 24” ball valve on the discharge force main.

On February 1, 2021, the EMID Board approved the award of engineering design services to BKF Engineers.

On June 20,2023, the EMID Board rejected the sole construction bid due to it being well above the engineer’s estimate and approved further design work to clarify plans and specifications. The project is expected to be rebid and completed in 2024.

Project Timeline:

Design: Ongoing
Construction: FY 2023-2024 – FY 2024-2025
(CIP 455-696, Budget $900,000) Sanitary Sewer System Improvements (2020-2021) - (On Hold) The scope of the project includes the replacement, rehabilitation, reconstruction, and new installation of sanitary sewer pipelines and manholes at three (3) locations. The work was bid as options in the completed CIP 455-611 Sanitary Sewer System Improvements Project; however, the options were not exercised due to budgetary constraints.

On January 4, 2021, the EMID Board of Directors adopted Resolution No. 3553 authorizing an agreement with HydroScience Engineers, Inc. to prepare construction contract documents and provide construction support services. The construction contract documents are 90 percent completed.

Improvements made as a part of CIP 611 (which replaced upstream pipelines) appear to have effectively resolved the previously existing issues. The location is being monitored by Wastewater maintenance staff and the project is currently on hold while other priority project are addressed.

Project Timeline:

Design: On Hold
Construction: On Hold
(CIP 301-698, Budget $625,000) Traffic Signal System Upgrades (2020-2021) The City’s traffic signal system was evaluated as part of the Bicycle, Pedestrian, and Intersection Evaluation Study (CIP 301-664). This part of the study focused on inventory of the existing traffic signal infrastructure network and identified opportunities to improve efficiency through either equipment or operations enhancements. This project is built upon recommendations from CIP 301-664 and will include the following tasks for design and construction:

1. Citywide Communications Upgrade

2. Traffic Signal Field Hardware
a. Vehicle and Pedestrian Signal Heads Replacement - This will require replacement of the traffic signal and pedestrian framework and installation of new light-emitting diode (LED) indications will refresh the City’s traffic signal equipment.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

15 b. Accessible Pedestrian Signals (APS) Replacement - This will require each APS unit (pedestrian push button) to be hardwired individually back to the traffic control cabinet.

3. Traffic Signal Cabinets Upgrade to NEMA TS-2 - Upgrade will maximize detection input opportunities (64-channels) and offer robust maintenance features that can be viewed at the central computer system.

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

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

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

Project Timeline:

Technical Memorandum: FY 2024-2025
Design: FY 2024-2025 – FY 2025-2026
Construction: FY 2025-2026
(CIP 301-699, Budget $200,000) Corporation Yard Workshops Exterior Paint (2020-2021) The Building Maintenance Division maintains the quality of interior and exterior paint on all City facilities.

Periodically, City facilities require comprehensive paint replacement. The salt air where the Corporation Yard is located along the San Francisco Bay is especially hard on exterior paint.

The Corporation Yard Shops were last painted in 2007 and are due to be repainted to protect and maintain the overall appearance of the building. Repairs to the building exteriors, such as replacing dry- rotted wall sheathing was completed as part of CIP 301-693 Roof Replacements Project.

Project Timeline:

Completion: FY 2024-2025

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

16 (CIP 301-700, Budget $3,077,946) Fuel Systems Improvements (2021-2022) The project consists of the replacement of two 10,000 gallon underground unleaded fuel storage tanks (UGSTs), at the Corporation Yard entrance; two 5,000 gallon above ground diesel fuel storage tanks (AGSTs) in a covered, concrete vault immediately adjacent to and west of the lagoon pump station building; and one 210-gallon day tank for diesel fuel, located inside the lagoon pump station building.

A preliminary assessment of the City’s fuel systems was performed in FY 2021-2022 confirming the need for complete replacement of both the diesel and unleaded systems. On January 17, 2023, the City Council approved the issuance of an RFP for professional design services. On May 1, 2023, the City Council approved a design agreement with TAIT Environmental Services for design of the project. Project design is underway and expected to be completed in Fall of 2024.

Project Timeline:

Preliminary Assessment: Complete
Design: FY 2023-2024 – FY 2024-2025
Construction: FY 2024-2025- FY 2025-2026
(CIP 405-704, Budget $1,250,000) Large Water Meter Replacements (2021-2022) The project consists of the removal and replacement of various large water meters throughout the District.

A survey that was conducted in 2022 identified several large water meters that are due for replacement.

These meters are currently under-registering and do not account for the full cost of water usage. Due to their size and lay length differences, many will require new meter boxes and reconfiguration of piping to and from the new meters, and therefore cannot be performed in house by staff.

The Water Maintenance Division has replaced one (1) 4” (large) meter and six (6) 3” meters over the past couple of years and will continue its efforts to replace those meters that can be done in house.

Staff has analyzed and prioritized a list of water meters based on factors such as remaining useful life, the greatest calculated lost revenue, and performance. It is anticipated that following replacement of these inaccurate meters, EMID could recover the cost of replacing most of the meters within a few years.

The scope of the project previously was comprised of 3 other small projects that were identified as part of the Water Distribution System Master Plan and by the Maintenance Division during routine maintenance activities. The first included a valve replacements project. The Valve Replacements Project was identified as a separate project in the five-year CIP during the FY 2023-2024 budget process. Two additional projects (1) Pipeline extension at East Hillsdale Boulevard, and (2) Water Transmission Pipeline Condition Assessment have been moved into their own CIP projects this year, to provide greater flexibility for project management as the project timelines differ.

Project Timeline:

Condition Assessment: FY 2023-2024 to FY 2024-2025
Construction: FY 2024-2025

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

17 (CIP 455-705, Budget $2,300,000) Emergency Generator Replacements (2021-2022) This project addresses the replacement of certain emergency generators and automatic transfer switches that are located at 10 of the District’s wastewater lift stations and are at the end of their useful life as follows: the emergency generators and automatic transfer switches at Lift Stations 10, 12, 14, 15, 16, 29, 43 and 59 and the emergency generator only at Lift Stations 22 and 26. In June 2022, staff issued an RFP to procure the services of a design firm to address the replacement of the emergency generators and transfer switches for 3 locations (LS 22, 29, and 59) that required accelerated replacement due to frequent repairs being required. On August 15, 2022, the District Board adopted EMID Resolution 3672 approving a professional services agreement with Freyer & Laureta, Inc for design services. Design is anticipated to be completed by Fall 2024 with construction to follow.

Project Timeline:

Design: On-going
Construction: FY 2025-2026
(CIP 301-707, Budget $500,000) Install Rear Security Gates (2022-2023) The project includes purchase and installation of security gates for the safety of public and for emergency vehicle movement in the driveway behind the Police Station/Fire Station/City Hall. In addition to the gates themselves, the project will require loop detectors, UL-required safety devices, and local controls as well as electrical and concrete work, which could include curb modifications and trenching/back filling for power and control wiring.

Project Timeline:

Design: FY 2024-2025
Construction: FY 2025-2026
(CIP 301-708, Budget $800,000) Renovate Elevators in City Buildings (2022-2023) The project addresses replacing essential elevator components in City buildings. The components are experiencing an increasing number of failures as they age and replacement parts are difficult or impossible to procure. This project is currently planned to be in design in FY 2024-2025.

Project Timeline:

Design: FY 2024-2025
Construction: FY 2024-2025
(CIP 455-710, Budget $500,000) Shell Bridge Sanitary Sewer Force Main Rehabilitation (2022-2023) The project will address the rehabilitation or replacement of the 16” cast iron force main attached to the Shell Bridge.

In May 2023, thickness testing along the pipe span was performed to evaluate the current condition and determine the feasibility of lining it to extend its service life. A draft TM has been prepared documenting the field investigation findings. A basis of design report will be prepared to evaluate rehabilitation and/or replacement alternatives. Design is estimated to begin in Summer 2024. The construction target date is summer 2025.

Project Timeline:

Design: FY 2023-2024 to FY 2024-2025
Construction: FY 2024-2025 to FY 2025-2026

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

18 (CIP 301-711, Budget $130,000) Police Station Kitchen Remodel (2023-2024) The project addresses the remodeling of the breakroom and the kitchen located within the Police Station.

An overhaul of the kitchen to install new cabinets, countertops, sink, appliances, additional storage, and to repair the adjacent wall, will address many issues identified by users of the space. Additionally, the breakroom area will be reconfigured to optimize the use of the space to accommodate employees while eating. The remodel proposes removing an adjacent storage room, that has been underutilized, to expand the breakroom/kitchen space and allow for more usable space. This project is currently being assessed and prioritized based on staff capacity.

Project Timeline:

Design/Construction: Under evaluation
(CIP 301-712, Budget $900,000) Edgewater Park Softball and Soccer Synthetic Turf Resurfacing (2023-2024)
The project will address the full replacement of the turf surface of the softball/soccer field that was installed in FY 2012-2013 to maintain the integrity of this highly used field. On October 16, 2023, City Council adopted Resolution 2023-98 awarding Verde Design, Inc. a Professional Services Agreement in the amount of $49,800 to provide professional design services, bidding support, and construction support for the project. Design was completed in early 2024 and construction will begin summer 2024.

Project Timeline:

Design: Completed
Construction: FY 2024-2025
(CIP 301-713, Budget $250,000) Light installation at Boothbay Park (2023-2024) This project will enhance the accessibility and utilization of the Tennis Courts at Boothbay Park by installing new infrastructure and appropriate lighting system. The addition of lights will expand the hours that the community and user groups can take advantage of the tennis courts and increase overall capacity in the City for greater play.

Project Timeline:

Design: FY 2024-2025
Construction: FY 2024-2025
(CIP 301-714, Budget $300,000) Sea Cloud Maintenance Shed (2023-2024) The Sea Cloud Park maintenance facility serves as the central hub for storing both light and heavy park maintenance equipment, providing a dedicated workspace and break area for staff, and offering storage accommodations for sports user groups. Despite undergoing multiple roof repairs to combat persistent leaks, the building has incurred significant dry rot and underlying structural challenges over time.

Recognizing these deficiencies, the primary objective of the upcoming project is to replace the structure.

An initial structural assessment was conducted as a part of CIP 301-693 Roof Replacements at City Buildings. The findings of the structural assessment will inform the timeline of this project. In January 2024, the City Council affirmed the need for this project.

Project Timeline:

Design/Construction: Under evaluation

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

19 (CIP 301-715, Budget $400,000) Substructure and Superstructure Bridge Improvements (2023-2024)
This project addresses deficiencies in Bicentennial, Foster City Boulevard, Rainbow, and Shell Boulevard Bridges. Caltrans performs inspections of the above water bridge elements every two years and the underwater elements every five years and reports its findings to the City. The project will address deficiencies identified in the Caltrans inspection documents and any deficiencies identified by a consultant engineering firm working directly for the City. As no addressable deficiencies have been identified in Caltrans underwater inspections, the project budget does not include funds to repair underwater bridge elements. Additional funding may be requested for the design and construction of underwater bridge improvements, if any are identified.

The next step of the project is to engage a consultant to perform bridge inspections and provide preliminary design services. The design for this project will be conducted in two phases. The initial phase entails conducting a thorough examination of previous Caltrans bridge inspection reports alongside current on-site inspections. This process will result in the development of a Basis of Design report delineating the elements requiring improvements. The second phase will consist of the development of construction documents, including bid and construction support services.

Project Timeline:

Design: Ongoing
Construction: FY 2024-2025
(CIP 301-716, Budget $2,478,247) Street Rehabilitation and Park Pathway Restoration (2023-2024) This project will repair/resurface the following areas: the portion of Edgewater Blvd south of Beach Park Blvd, the eastern portion of E. 3 rd Ave, the brick intersection in front of Metro Center Plaza, and the Shell Blvd driveway at Beach Park Elementary School. Additionally, $300,000 is allocated to Park pathway restoration. This project will repair/resurface portions of the pathways in Sea Cloud Park and Boothbay Park and replace cracked concrete entrances with asphalt at Sunfish, Turnstone, and Marlin Parks.

The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays.

Additionally, all improvements will be designed with the latest City and National Standards. This includes accessibility upgrades complying with the City’s ADA Transition plan and all pavement work following the requirements of the MRP3.0 (Municipal Regional Stormwater Permit) of our NPDES (National Pollutant Discharge Elimination System) Permit.

On November 6, 2023, City Council adopted Resolution 2023-103 awarding a BKF Engineers a task order in the amount of $144,868 to provide roadway assessment, design services, and bid/construction support. Design is on-going and construction will be performed in summer/fall 2024.

Project Timeline:

Design: On-going
Construction: FY 2024-2025

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

20 (CIP 301-717, Budget $2,000,000) Add Third and Fourth Lagoon Pump and Related Infrastructure (2023-2024)
The project consists of adding a third and possibly fourth lagoon pump at the City’s corporation yard in the existing partially decommissioned pump station bays in order to ensure redundancy during large storms and into the future with climate change.

The project kicked off in late 2023 with initialization of a preliminary engineering analysis on third pump feasibility and constructability alongside CIP 718 analyzing the lagoon pump station’s structural integrity to ensure adding a third and possibly fourth pump to the existing building was practicable.

Project Timeline:

Design: FY 2023-2024 – FY 2024-2025
Construction: FY 2025-2026
(CIP 301-718, Budget $200,000) Lagoon Pump Station Building Rehabilitation (2023-2024) The project consists of rehabilitation on the City’s lagoon pump station. The lagoon pump station was built in the early 1960’s and is one of the City’s oldest buildings. In several locations, significant amounts of concrete have spalled away which adversely affects the structural integrity of certain elements of the facilities. In addition, numerous structural code changes have been adopted since the design of this building. In a report prepared by Murray Smith, Inc. in May 2021, as part of CIP 301-690 Seismic Improvements project, recommendations were made to perform an in-depth evaluation of the building to include additional structural evaluation of the lagoon pump station building and the below water structures based on current building code standards. The recommendation included further structural investigation and analysis of the lagoon walkway, channels, trash racks (previously replaced in 2010), and foundation, to determine potential structural deficiencies.

Structural investigation kicked off in late 2023 with preliminary engineering investigating the existing structure to recommend next steps of further destructive testing, rehabilitation programming, or new construction, if necessary.

The work on the lagoon intake structure was moved into its own CIP in order to allow it to move on its own schedule and because it is located near Sea Cloud Park.

Project Timeline:

Design: FY 2023-2024 – FY 2024-2025
Construction: FY 2025-2026
(CIP 451-719, Budget $600,000) Sanitary Sewer Lift Stations Improvements - Phase 6 (2023-2024) This project was identified in the District’s Wastewater Collection System Master Plan, and will address deficiencies at Lift Stations 6, 9, 11, 13, 22, 29, 42 and 43. Lift station improvements generally include repairing the interior wet wells; replacing critical components, and electrical improvements including installation of additional systems to remotely monitor and control the lift stations. Design is anticipated to begin in FY 2025-2026 to allow staff to address other priority projects first.

Project Timeline:

Design: FY 2025-2026
Construction: FY 2026-2027

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

21 Projects Completed but Not Yet Closed in FY 2023-2024 (CIP 301-702, Budget $300,000) Park Pathway Restoration (2021-2022) This project addressed improvements to pathways in the following city parks: Arcturus, Turnstone, Shad, Erckenbrack, and Constitution Walkway. Improvements included removing and replacing failed and root- damaged asphalt and installing root barrier, slurry seal, and, if needed, line striping. This project has been combined with CIP (301-703) Street Rehabilitation Project. Construction has been completed. (CIP 301-703, Budget $3,200,000) Street Rehabilitation (2021-2022) This project consisted of the repair/resurfacing of the following public streets: Polaris Avenue, Argus Court, Arcturus Court, Pollux Court, portion of Shell Boulevard, Comet Drive, Balclutha Drive, Polynesia Avenue, Constitution Drive, Chrysopolis Drive, Lurline Drive, Niantic Drive, and Pilgrim Drive. Repair methods included crack seal, slurry seal, dig-out repairs, and surface overlays. The project also included curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends were incorporated as appropriate. Construction of the Park Pathway Restoration Project (CIP 301-702) was performed in conjunction with this project to take advantage of economies of scale and allow more efficient project delivery. Construction has been completed.

Projects Closed Out in FY 2023-2024
(CIP 455-626, Budget $8,075,000) Sanitary Sewer Lift Station Improvements - Phase 5 (2012-2013) This project consisted of repairing interior wet wells; installing new pumps, motors, and valves; replacing electrical and telemetry control systems; installing bypass piping and connections; and replacing corroded components with stainless-steel components. This project addressed the rehabilitation of 10 lift stations:

LS 1, 2, 5, 7, 8, 18, 21, 23, and 24. The work at the lift stations was completed under budget and Notice of Completion was filed on March 31, 2023.
(CIP 405-636, Budget $1,550,000) Water System Improvements and Valve Replacements (2013-2014)
This project consisted of the replacement of broken water valves at the intersections of East Hillsdale Boulevard and Edgewater Boulevard, and Mariner’s Island Boulevard and Fashion Island Boulevard, and installing bypass assemblies, valves, pipe segments, and other appurtenances to the 24-inch transmission main near the Seal Slough Bridge in the City of San Mateo. The project was completed under budget and Notice of Completion was filed May 19, 2023. (CIP 301-655, Budget $925,000) Leo Ryan Park Lawn Conversion and Bocce Court Expansion (2015-2016) – (Closed at Council Direction)
At its meeting on January 16, the City Council provided direction that CIP 301-655 be closed out and the funding transferred to CIP 301-678 Recreation Center Rebuild. The Council further directed that the addition of Bocce courts be included as an add alternative to the Recreation Center Rebuild Project. It will include modifying the area around the existing bocce ball courts, resurfacing the existing courts, and adding an additional two courts. If funds allow, the work will be completed during the Recreation Center Rebuild Project.

Project Timeline:

Design: FY 2023-2024
Construction: To be considered as a bid alternative in CIP 301-678

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

22 (CIP 301-681, Budget $4,238,970) New Traffic Signals at Various Locations (2018-2019) This project consists of the construction of traffic signals at the intersections of (1) Beach Park Boulevard and Gull Avenue (North), (2) Foster City Boulevard and Polynesia Drive, (3) Edgewater Boulevard and Port Royal Avenue (North) and (4) Beach Park Boulevard and Shell Boulevard.

Construction began in June 2022 and was completed in July 2023 under budget. The Notice of Completion was approved by the City Council on February 5, 2024. (CIP 301-693, Budget $1,550,000) Roof Replacements at City Buildings (2019-2020) This project consists of roof repair and/or replacements of various City buildings including the Police Station, Teen Center, and various Corporation Yard buildings (the Public Works water/wastewater/streets/ lagoons workshops, storage room, locker room, kitchen; shared training room adjacent to the lagoon pump house building; Parks key room, Vehicle Maintenance shop and small engine shop). Construction was completed on October 9, 2023, and the Notice of Completion was approved by the City Council in December 2023.
(CIP 301-694, Budget $475,000) Dynamic Signage for Traffic Relief Pilot Program (2019-2020) This project consisted of the installation of no left turn dynamic signage at the intersections of E. Hillsdale Boulevard and Edgewater Boulevard and E. Hillsdale Boulevard and Shell Boulevard to address concerns regarding cut-through traffic on East Hillsdale Boulevard during peak evening commute hours, Construction was completed by May 2022 under budget, and Notice of Completion recorded on September 6, 2022.
(CIP 301-697, Budget $1,560,000) Street Rehabilitation (2020-2021) This project consisted of the repair/resurfacing of the following public streets: Port Royal Avenue, Boothbay Avenue, Chesapeake Avenue, Nantucket Street, a portion of Shell Boulevard, Bounty Drive and Dolphin Isle. The repair methods included crack seal, slurry seal, dig-out repairs, and surface overlays.

The project also included curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Design was performed in house by staff. Construction was completed in November 2022 under budget. The Notice of Completion was filed in March 2023 and the project has been closed out. (CIP 301-706, Budget $200,000) Government Center Rehabilitation (2022-2023) This project improved the interior of the City Hall building (610 Foster City Boulevard). The renovation consisted of office partition modifications to accommodate increased staff or need for reconfiguration.

Improvements were completed in late summer of 2023 under budget. (CIP 301-709, Budget $1,170,000) Sea Cloud Park S4 Synthetic Resurfacing (2022-2023) This project addressed the full replacement of the turf surface of the S4 soccer field that was installed in FY 2012-2013 to maintain the integrity of this highly used field. Improvements were completed in September 2023. The Notice of Completion was approved by the City Council on February 20, 2024.

Project Timeline:

Design: Ongoing
Construction: Completed

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

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

CIP Planning Process
Identifying CIP Projects
Throughout the fiscal year, City staff members monitor the functional status and performance of the City’s infrastructure elements. Maintenance activities are documented and analyzed to determine if rehabilitation or replacement is necessary. In addition, the City Council may provide policy direction to construct, enhance or rehabilitate City facilities. Based on these inputs, Staff begins to define the scope, nature and extent of projects. Projects on the previous year’s Five-Year CIP Plan are reviewed and updated and new recommended projects are defined.

Cost Estimates
Upon identifying the scope and nature of each project, staff prepares cost estimates of the projects.

Projects which come up within the next 1-2 years have detailed engineers’ cost estimates prepared.

Projects which are 3-5 years out have less detailed cost estimates, but are sufficient in detail to give an overall order-of-magnitude cost estimate for planning purposes.

The cost estimates include an inflationary factor in a range of 2% to 10% per year for projects that are in years 2-5 based upon the historical trends and future expectations of raw materials and labor costs for projects. Cost estimates also include contingency factors that can range from 10% to 25% based upon the historical experience of similar projects and the relative uncertainty with respect to the project itself.

For example, a construction project built upon ground that is suspected to have hazardous materials may yield a higher contingency factor than a relatively simple replacement of walkways.

Funding Sources
Once the costs and timing have been identified and projected, a financial analysis is prepared to determine whether the projects can be funded. Consideration is given to a variety of sources of funds including:
• Grant funds
• Revenues dedicated for such purposes (e.g., Measure A funds for street improvements) • Park In-lieu fees
• Water and Wastewater rate revenue
• Interest earnings
• Existing undesignated funds
Development of Five-Year Plan

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

24 The recommended timing of projects in the plan takes into consideration many factors including:
• Status of the existing infrastructure
• Risk management considerations
• City Council policy priorities
• Staffing/staff workload
• Bidding environment
• Available funding
The City Council considers the draft plan at a Study Session that is typically held in late March. The City Council provides direction on each of the projects and any changes are incorporated into a revised plan that is reviewed by the Planning Commission for consistency with the General Plan. Any updates requiring further discussion are provided once again to the City Council at a Budget Study Session, typically held in May.

The City Council then holds a Public Hearing on the budget as a whole, which includes the Five-Year CIP Plan, normally in June. Subject to any public testimony and final Council direction, the final Five-Year CIP Plan is prepared, and the project costs associated with any projects which are funded in the next fiscal year are appropriated by the City Council as part of the adoption of the Annual Budget.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

25 FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29) Category

PROJECT
# PROJECT NAME
Funding
Source*
TOTAL - Not
Including Prior
Years 2024-25 2025-26 2026-27 2027-28 2028-29

BUILDING PROJECTS
C BD-01 BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (2017-2018) CC $200,000 $0 $0 $200,000 $0 $0 A BD-02 BD-02 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) CC $922,054 $922,054 $0 $0 $0 $0 B BD-03 BD-03 (CIP 301-708) RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) CC $200,000 $200,000 $0 $0 $0 $0 B BD-04 BD-04 (NEW CIP) REPLACE CITY HALL AND FIRE STATION ROOF (2027-2028) BMF $500,000 $0 $0 $0 $500,000 $0 B BD-05 BD-05 (NEW CIP) REPLACE COUNCIL CHAMBERS HVAC (2028-2029) BMF $500,000 $0 $0 $0 $0 $500,000 TOTAL BUILDING PROJECTS 5 $2,322,054 $1,122,054 $0 $200,000 $500,000 $500,000

PARKS PROJECTS
A PK-01 PK-01 (CIP 301-678) RECREATION CENTER REBUILD (2017-2018) CC/PIL/PIF/BMF $9,559,750 $9,092,750 $467,000 $0 $0 $0 B PK-02 PK-02 (CIP 301-712) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (2023-2024) CC $350,000 $350,000 $0 $0 $0 $0 B PK-03 PK-03 (CIP 301-714) SEA CLOUD MAINTENANCE SHED (2023-2024) CC $2,000,000 $2,000,000 $0 $0 $0 $0 C PK-04 PK-04 (NEW CIP) CITY HALL EXTERIOR REHABILITATION (FY 2024-2025) CC $200,000 $200,000 $0 $0 $0 $0 B PK-05 PK-05 (NEW CIP) DOG PARK INFRASTRUCTURE UPGRADE AND SYNTHETIC TURF REPLACEMENT (2025-2026) CC $500,000 $0 $500,000 $0 $0 $0 C PK-06 PK-06 (NEW CIP) TENNIS AND BASKETBALL COURTS RESURFACING (2025-2026) CC $320,000 $0 $320,000 $0 $0 $0 B PK-07 PK-07 (NEW CIP) CATAMARAN PARK IMPROVEMENTS (2026-2027) CC $550,000 $0 $0 $550,000 $0 $0 B PK-08 PK-08 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYNTHETIC RESURFACING (2026-2027) CC $1,800,000 $0 $0 $1,800,000 $0 $0 C PK-09 PK-09 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (2026-2027) CC $120,000 $0 $0 $120,000 $0 $0 B PK-10 PK-10 (NEW CIP) GULL PARK RENOVATION (2027-2028) CC/ERF $3,810,000 $0 $0 $0 $3,810,000 $0 B PK-11 PK-11 (NEW CIP) MARLIN PARK RENOVATION (2027-2028) CC/ERF $3,900,000 $0 $0 $0 $3,900,000 $0 B PK-12 PK-12 (NEW CIP) BOOTHBAY PARK SITE IMPROVEMENTS (2027-2028) CC/ERF/PIL $4,000,000 $0 $0 $0 $500,000 $3,500,000 B PK-13 PK-13 (NEW CIP) PARKING LOT RESURFACING (2028-2029) CC $600,000 $0 $0 $0 $0 $600,000 B PK-14 PK-14 (NEW CIP) PORT ROYAL SYNTHETIC RESURFACING (2028-2029) CC $925,000 $0 $0 $0 $0 $925,000 TOTAL PARKS PROJECTS 14 $28,634,750 $11,642,750 $1,287,000 $2,470,000 $8,210,000 $5,025,000

STORMWATER/LAGOON PROJECTS
A SW-01 SW-01 (CIP 301-717) ADD THIRD AND FOURTH LAGOON PUMP AND RELATED INFRASTRUCTURE (2023-2024) CC $2,000,000 $0 $2,000,000 $0 $0 $0 A SW-02 SW-02 (CIP 301-718) LAGOON PUMP STATION BUILDING REHABILITATION (2023-2024) CC $9,720,000 $470,000 $4,950,000 $4,300,000 $0 $0 A SW-03 SW-03 (NEW CIP) LAGOON INTAKE STRUCTURE REHABILITATION (2024-2025) CC $780,000 $30,000 $50,000 $700,000 $0 $0 TOTAL STORMWATER/LAGOON PROJECTS 3 $12,500,000 $500,000 $7,000,000 $5,000,000 $0 $0

STREETS/TRAFFIC PROJECTS
A ST-01 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) SB1/MW/ERF/ TIF/CC $8,825,000 $1,000,000 $4,825,000 $3,000,000 $0 $0 B ST-02 ST-02 (CIP 301-715) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (2023-2024) SB1 $750,000 $750,000 $0 $0 $0 $0 A ST-03 ST-03 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2024-2025) MA/GT/CC $1,800,000 $1,800,000 $0 $0 $0 $0 C ST-04 ST-04 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (2025-2026) MM $325,000 $0 $75,000 $250,000 $0 $0 A ST-05 ST-05 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2025-2026) MA/CC $1,800,000 $0 $1,800,000 $0 $0 $0 B ST-06 ST-06 (NEW CIP) FIRE AND RESCUE BOAT RAMP REHABILITATION (2026-2027) CC $280,000 $0 $0 $80,000 $0 $200,000 A ST-07 ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2026-2027) MA/SB1/CC $1,800,000 $0 $0 $1,800,000 $0 $0 A ST-08 ST-08 (NEW CIP) STREET REHABILITATION (2027-2028) MA/SB1 $1,800,000 $0 $0 $0 $1,800,000 $0 A ST-09 ST-09 (NEW CIP) STREET REHABILITATION (2028-2029) MA/SB1 $1,800,000 $0 $0 $0 $0 $1,800,000 TOTAL STREETS/TRAFFIC PROJECTS 9 $19,180,000 $3,550,000 $6,700,000 $5,130,000 $1,800,000 $2,000,000 (Continued to next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

26 (Continued from last page)
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29) Category

PROJECT
# PROJECT NAME
Funding
Source*
TOTAL - Not
Including Prior
Years 2024-25 2025-26 2026-27 2027-28 2028-29

WATER PROJECTS
B WA-01 WA-01 (NEW CIP) WATER MAIN CONDITION ASSESSMENT (2025-2026) CW/WCF $250,000 $0 $250,000 $0 $0 $0 A WA-02 WA-02 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON E. THIRD AVE. (2025-2026) CW $1,000,000 $0 $300,000 $700,000 $0 $0 B WA-03 WA-03 (NEW CIP) LARGE WATER VALVE REPLACEMENT (2026-2027) CW $1,500,000 $0 $0 $1,000,000 $500,000 $0 B WA-04 WA-04 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (2026-2027) CW/WCF $1,000,000 $0 $0 $1,000,000 $0 $0 A WA-05 WA-05 (NEW CIP) REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS (2027-2028) CW $500,000 $0 $0 $0 $500,000 $0 A WA-06 WA-06 (NEW CIP) WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT (2027-2028) CW $125,000 $0 $0 $0 $125,000 $0 A WA-07 WA-07 (NEW CIP) TWO ENGINES AND PUMP REPLACEMENT AT WATER BOOSTER PUMP STATION (2027-2028) CW $975,000 $0 $0 $0 $375,000 $600,000 A WA-08 WA-08 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (2028-2029) CW $700,000 $0 $0 $0 $0 $700,000 B WA-09 WA-09 (NEW CIP) EAST HILLSDALE BOULEVARD LOOP (2028-2029) CW $138,000 $0 $0 $0 $0 $138,000 TOTAL WATER PROJECTS 9 $6,188,000 $0 $550,000 $2,700,000 $1,500,000 $1,438,000

WASTEWATER PROJECTS
A WW-01 WW-01 (CIP 455-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (2015-2016) CWW $10,102,575 $8,225,263 $1,877,312 $0 $0 $0 A WW-02 WW-02 (CIP 455-705) EMERGENCY GENERATOR REPLACEMENTS (2021-2022) CWW $3,900,000 $1,900,000 $2,000,000 $0 $0 $0 A WW-03 WW-03 (CIP 455-710) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (2022-2023) CWW $500,000 $500,000 $0 $0 $0 $0 A WW-04 WW-04 (CIP 455-719) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (2023-2024) CWW $8,900,000 $0 $7,900,000 $1,000,000 $0 $0 A WW-05 WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (2025-2026) CWW $2,500,000 $0 $500,000 $2,000,000 $0 $0 B WW-06 WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (2026-2027) CWW $1,100,000 $0 $0 $0 $100,000 $1,000,000 A WW-07 WW-07 (NEW CIP) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 7 (2028-2029) CWW $3,200,000 $0 $0 $0 $0 $3,200,000 TOTAL WASTEWATER COLLECTION SYSTEM PROJECTS 7 $30,202,575 $10,625,263 $12,277,312 $3,000,000 $100,000 $4,200,000 GRAND TOTAL 47 $99,027,379 $27,440,067 $27,814,312 $18,500,000 $12,110,000 $13,163,000 *BMF=Building Maintenance Fund; CC=CIP City; CW=CIP Water; CWW=CIP Wastewater; CWW-ERF= Wastewater Equipment Replacement Fund; ERF=Equipment Replacement Fund; GT=Gas Tax (2103); MA=Measure A; MM=Measure M; MW=Measure W; SB 1 = Road Maintenance & Rehab; PIF = Park Facility Impact Fees; PIL = Park-In-Lieu; TIF = Transportation Impact Fees; WCF=Water Connection Fees; WWCF=Wastewater Connection Fees

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

27 TABLE A
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29) Project No. PROJECT DESCRIPTION TOTAL

CATEGORY A PROJECTS
BD-02 BD-02 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) $ 922,054 PK-01 PK-01 (CIP 301-678) RECREATION CENTER REBUILD (2017-2018) $ 9,559,750 ST-01 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) $ 8,825,000 ST-03 ST-03 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2024-2025) $ 1,800,000 ST-05 ST-05 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2025-2026) $ 1,800,000 ST-07 ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2026-2027) $ 1,800,000 ST-08 ST-08 (NEW CIP) STREET REHABILITATION (2027-2028) $ 1,800,000 ST-09 ST-09 (NEW CIP) STREET REHABILITATION (2028-2029) $ 1,800,000 SW-01 SW-01 (CIP 301-717) ADD THIRD AND FOURTH LAGOON PUMP AND RELATED INFRASTRUCTURE (2023-2024) $ 2,000,000 SW-02 SW-02 (CIP 301-718) LAGOON PUMP STATION BUILDING REHABILITATION (2023-2024) $ 9,720,000 SW-03 SW-03 (NEW CIP) LAGOON INTAKE STRUCTURE REHABILITATION (2024-2025) $ 780,000 WA-02 WA-02 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON E. THIRD AVE. (2025-2026) $ 1,000,000 WA-05 WA-05 (NEW CIP) REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS (2027-2028) $ 500,000 WA-06 WA-06 (NEW CIP) WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT (2027-2028) $ 125,000 WA-07 WA-07 (NEW CIP) TWO ENGINES AND PUMP REPLACEMENT AT WATER BOOSTER PUMP STATION (2027-2028) $ 975,000 WA-08 WA-08 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (2028-2029) $ 700,000 WW-01 WW-01 (CIP 455-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (2015-2016) $ 10,102,575 WW-02 WW-02 (CIP 455-705) EMERGENCY GENERATOR REPLACEMENTS (2021-2022) $ 3,900,000 WW-03 WW-03 (CIP 455-710) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (2022-2023) $ 500,000 WW-04 WW-04 (CIP 455-719) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (2023-2024) $ 8,900,000 WW-05 WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (2025-2026) $ 2,500,000 WW-07 WW-07 (NEW CIP) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 7 (2028-2029) $ 3,200,000 Subtotal for Category A Projects $ 73,209,379

CATEGORY B PROJECTS
BD-03 BD-03 (CIP 301-708) RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) $ 200,000 BD-04 BD-04 (NEW CIP) REPLACE CITY HALL AND FIRE STATION ROOF (2027-2028) $ 500,000 BD-05 BD-05 (NEW CIP) REPLACE COUNCIL CHAMBERS HVAC (2028-2029) $ 500,000 PK-02 PK-02 (CIP 301-712) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (2023-2024) $ 350,000 PK-03 PK-03 (CIP 301-714) SEA CLOUD MAINTENANCE SHED (2023-2024) $ 2,000,000 PK-05 PK-05 (NEW CIP) DOG PARK INFRASTRUCTURE UPGRADE AND SYNTHETIC TURF REPLACEMENT (2025-2026) $ 500,000 PK-07 PK-07 (NEW CIP) CATAMARAN PARK IMPROVEMENTS (2026-2027) $ 550,000 PK-08 PK-08 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYNTHETIC RESURFACING (2026-2027) $ 1,800,000 PK-10 PK-10 (NEW CIP) GULL PARK RENOVATION (2027-2028) $ 3,810,000 PK-11 PK-11 (NEW CIP) MARLIN PARK RENOVATION (2027-2028) $ 3,900,000 PK-12 PK-12 (NEW CIP) BOOTHBAY PARK SITE IMPROVEMENTS (2027-2028) $ 4,000,000 PK-13 PK-13 (NEW CIP) PARKING LOT RESURFACING (2028-2029) $ 600,000 PK-14 PK-14 (NEW CIP) PORT ROYAL SYNTHETIC RESURFACING (2028-2029) $ 925,000 (Continued on next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

28 (Continued from previous page)

TABLE A
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29) Project No. PROJECT DESCRIPTION TOTAL
CATEGORY B PROJECTS (continued)
ST-02 ST-02 (CIP 301-715) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (2023-2024) $ 750,000 ST-06 ST-06 (NEW CIP) FIRE AND RESCUE BOAT RAMP REHABILITATION (2026-2027) $ 280,000 WA-01 WA-01 (NEW CIP) WATER MAIN CONDITION ASSESSMENT (2025-2026) $ 250,000 WA-03 WA-03 (NEW CIP) LARGE WATER VALVE REPLACEMENT (2026-2027) $ 1,500,000 WA-04 WA-04 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (2026-2027) $ 1,000,000 WA-09 WA-09 (NEW CIP) EAST HILLSDALE BOULEVARD LOOP (2028-2029) $ 138,000 WW-06 WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (2026-2027) $ 1,100,000 Subtotal for Category B Projects $ 24,653,000

CATEGORY C PROJECTS
BD-01 BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (2017-2018) $ 200,000 PK-04 PK-04 (NEW CIP) CITY HALL EXTERIOR REHABILITATION (FY 2024-2025) $ 200,000 PK-06 PK-06 (NEW CIP) TENNIS AND BASKETBALL COURTS RESURFACING (2025-2026) $ 320,000 PK-09 PK-09 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (2026-2027) $ 120,000 ST-04 ST-04 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (2025-2026) $ 325,000 Subtotal for Category C Projects $ 1,165,000
GRAND TOTAL $ 99,027,379

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

29 TABLE B
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29)

DESCRIPTION
CIP City
(Fund 301)
CAA&R
(Fund 326)

ISF-ERF
(Fund 502)

ISF-BMF
(Fund 505)
Developer
Deposits (4)
Measure A
(Fund 102)
Gas Tax
2103
(Fund 103)
Park-In-Lieu
Fees
(Fund 104)
Measure M
(Fund 105)
SB1 Road
Maint and
Rehab
(Fund 119)
Measure W
(Fund 136)
Impact Fees
- Park
Facility
(Fund 142)
Impact Fees
-
Transportati
on (Fund
144)
Water
Capital
Investment
(Fund 405)
Water
Connection
Fees
(Fund 409)
Wastewater
Capital
Investment
(Fund 455)
Wastewater
Equipment
Replacemen
t Fund
(Fund 458)
WWCF
(Fund 460) TOTAL
301 304 502 505 102 103 104 105 119 136 230 405 409 455 458 460 Est. Funds Available for CIP Projects, June
6/30/2023 (1) $18,352,735 $4,148,773 $6,689,496 $9,025,173 $1,672,634 $1,483,562 $296,653 $3,023,045 $21,700 $1,250,722 $899,368 $594,000 $121,869 $5,636,457 $392,460 $8,782,957 $2,424,428 $1,076,991 $65,893,023 Long-Term CIP Funding Program (2) $28,750,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000,000 $0 $24,500,000 $0 $0 $58,250,000 Revenue Projections (3) $0 $5,555,000 $0 $0 $0 $5,174,200 $1,486,600 $0 $645,800 $4,832,500 $2,509,000 $467,000 $1,408,128 $0 $811,597 $0 $0 $4,417,973 $27,307,798 Total Available $47,102,735 $9,703,773 $6,689,496 $9,025,173 $1,672,634 $6,657,762 $1,783,253 $3,023,045 $667,500 $6,083,222 $3,408,368 $1,061,000 $1,529,997 $10,636,457 $1,204,057 $33,282,957 $2,424,428 $5,494,964 $151,450,821

CATEGORY A PROJECTS
BD-02 (CIP 301-700) FUEL SYSTEMS
IMPROVEMENTS (2021-2022) $922,054 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $922,054 PK-01 (CIP 301-678) RECREATION CENTER
REBUILD (2017-2018) $5,907,250 $0 $0 $1,846,500 $0 $0 $0 $745,000 $0 $0 $0 $1,061,000 $0 $0 $0 $0 $0 $0 $9,559,750 ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM
UPGRADES (2020-2021) $3,000,000 $0 $480,000 $0 $0 $0 $0 $0 $0 $2,220,000 $2,300,000 $0 $825,000 $0 $0 $0 $0 $0 $8,825,000 ST-03 (NEW CIP) STREET REHABILITATION AND
PARK PATHWAY RESTORATION (2024-2025) $300,000 $0 $0 $0 $0 $1,000,000 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 ST-05 (NEW CIP) STREET REHABILITATION AND
PARK PATHWAY RESTORATION (2025-2026) $300,000 $0 $0 $0 $0 $1,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 ST-07 (NEW CIP) STREET REHABILITATION AND
PARK PATHWAY RESTORATION (2026-2027) $300,000 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 ST-08 (NEW CIP) STREET REHABILITATION
(2027-2028) $0 $0 $0 $0 $0 $900,000 $0 $0 $0 $900,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 ST-09 (NEW CIP) STREET REHABILITATION
(2028-2029) $0 $0 $0 $0 $0 $900,000 $0 $0 $0 $900,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 SW-01 (CIP 301-717) ADD THIRD AND FOURTH

LAGOON PUMP AND RELATED
INFRASTRUCTURE (2023-2024) $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 SW-02 (CIP 301-718) LAGOON PUMP STATION
BUILDING REHABILITATION (2023-2024) $9,720,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $9,720,000 SW-03 (NEW CIP) LAGOON INTAKE STRUCTURE
REHABILITATION (2024-2025) $780,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $780,000 WA-02 (NEW CIP) PERMANENT EMERGENCY
BYPASS TRANSMISSION MAIN ON E. THIRD
AVE. (2025-2026) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $0 $1,000,000 WA-05 (NEW CIP) REPLACEMENT OF

CATHODIC PROTECTION ANODE BEDS
(2027-2028) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0 $0 $500,000 WA-06 (NEW CIP) WATER FACILITIES SEISMIC
VULNERABILITY ASSESSMENT (2027-2028) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $125,000 $0 $0 $0 $0 $125,000 WA-07 (NEW CIP) TWO ENGINES AND PUMP

REPLACEMENT AT WATER BOOSTER PUMP
STATION (2027-2028) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $975,000 $0 $0 $0 $0 $975,000 WA-08 (NEW CIP) CHLORINE ANALYZERS AND

AUTOFLUSHERS AT VARIOUS LOCATIONS
(2028-2029) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $700,000 $0 $0 $0 $0 $700,000 (Continued to next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

30 (Continued from previous page)

TABLE B
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29)

DESCRIPTION
CIP City
(Fund 301)
CAA&R
(Fund 326)

ISF-ERF
(Fund 502)

TREATMENT PLANT MASTER PLAN
IMPROVEMENTS (2015-2016) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,102,575 $0 $0 $10,102,575 WW-07 (NEW CIP) SANITARY SEWER LIFT
STATIONS IMPROVEMENTS - PHASE 7
(2028-2029) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $3,200,000 SUB TOTAL OF CATEGORY A PROJECTS $23,229,304 $0 $480,000 $1,846,500 $0 $5,300,000 $500,000 $745,000 $0 $4,520,000 $2,300,000 $1,061,000 $825,000 $3,300,000 $0 $29,102,575 $0 $0 $73,209,379 FUNDS AVAIL. (LESS CATEGORY A PROJECTS) $23,873,431 $9,703,773 $6,209,496 $7,178,673 $1,672,634 $1,357,762 $1,283,253 $2,278,045 $667,500 $1,563,222 $1,108,368 $0 $704,997 $7,336,457 $1,204,057 $4,180,382 $2,424,428 $5,494,964 $78,241,442

CATEGORY B PROJECTS
BD-03 (CIP 301-708) RENOVATE ELEVATORS IN
CITY BUILDINGS (2022-2023) $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000 BD-04 (NEW CIP) REPLACE CITY HALL AND
FIRE STATION ROOF (2027-2028) $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 BD-05 (NEW CIP) REPLACE COUNCIL
CHAMBERS HVAC (2028-2029) $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 PK-02 (CIP 301-712) EDGEWATER PARK

SOFTBALL AND SOCCER SYNTHETIC
RESURFACING (2023-2024) $350,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $350,000 PK-03 (CIP 301-714) SEA CLOUD MAINTENANCE
SHED (2023-2024) $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 PK-05 (NEW CIP) DOG PARK INFRASTRUCTURE

UPGRADE AND SYNTHETIC TURF
REPLACEMENT (2025-2026) $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 PK-07 (NEW CIP) CATAMARAN PARK
IMPROVEMENTS (2026-2027) $550,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $550,000 PK-08 (NEW CIP) CATAMARAN AND SEA CLOUD
S3 SYNTHETIC RESURFACING (2026-2027) $1,800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 PK-10 (NEW CIP) GULL PARK RENOVATION
(2027-2028) $3,550,000 $0 $260,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,810,000 PK-11 (NEW CIP) MARLIN PARK RENOVATION
(2027-2028) $3,775,000 $0 $125,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,900,000 PK-12 (NEW CIP) BOOTHBAY PARK SITE
IMPROVEMENTS (2027-2028) $1,840,000 $0 $110,000 $0 $0 $0 $0 $2,050,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,000,000 PK-13 (NEW CIP) PARKING LOT RESURFACING
(2028-2029) $600,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $600,000 PK-14 (NEW CIP) PORT ROYAL SYNTHETIC
RESURFACING (2028-2029) $925,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $925,000 SUB TOTAL OF CATEGORY B PROJECTS $16,370,000 $0 $495,000 $1,000,000 $0 $0 $0 $2,050,000 $0 $750,000 $0 $0 $0 $2,288,000 $600,000 $1,100,000 $0 $0 $24,653,000 FUNDS AVAIL. (LESS CATEGORY A AND B
PROJECTS) $7,503,431 $9,703,773 $5,714,496 $6,178,673 $1,672,634 $1,357,762 $1,283,253 $228,045 $667,500 $813,222 $1,108,368 $0 $704,997 $5,048,457 $604,057 $3,080,382 $2,424,428 $5,494,964 $53,588,442 (Continued on next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

31 (Continued from previous page)

TABLE B
FIVE YEAR CAPITAL IMPROVEMENT PROJECT PLAN (FISCAL YEAR 2024-25 TO 2028-29)

DESCRIPTION
CIP City
(Fund 301)
CAA&R
(Fund 326)

ISF-ERF
(Fund 502)

CATEGORY C PROJECTS
BD-01 (CIP 301-677) LIBRARY EXTERIOR

IMPROVEMENTS AND RE-LANDSCAPING
(2017-2018) $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000 PK-04 (NEW CIP) CITY HALL EXTERIOR
REHABILITATION (FY 2024-2025) $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000 PK-06 (NEW CIP) TENNIS AND BASKETBALL
COURTS RESURFACING (2025-2026) $320,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $320,000 PK-09 (NEW CIP) AMPHITHEATER SYNTHETIC
TURF RESURFACING (2026-2027) $120,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $120,000 ST-04 (NEW CIP) BICYCLE AND PEDESTRIAN
IMPROVEMENTS PROJECT (2025-2026) $0 $0 $0 $0 $0 $0 $0 $0 $325,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $325,000

SUB TOTAL OF CATEGORY C
PROJECTS $840,000 $0 $0 $0 $0 $0 $0 $0 $325,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,165,000 FUNDS AVAIL. (LESS CATEGORY A, B,
AND C PROJECTS) $6,663,431 $9,703,773 $5,714,496 $6,178,673 $1,672,634 $1,357,762 $1,283,253 $228,045 $342,500 $813,222 $1,108,368 $0 $704,997 $5,048,457 $604,057 $3,080,382 $2,424,428 $5,494,964 $52,423,442 (1) Funds Available are based upon a February 1, 2024 financial review and also include $2.0M Emergency Reserve for CIP Water and CIP Wastewater. (2) Funds transferred from the City General Fund (for CIP - City), Water Operations (CIP Water) and Wastewater Operations (CIP Wastewater) over the next five years per the Long-Term CIP Funding Program. (3) Revenue projections based on a preliminary projection of revenues in preparation of the 5-Year Financial Plan forecast. (4) Funds represent the deposits made by the developers of the following projects: Gilead Sciences; Chess Drive Offices; Pilgrim-Triton; 15-acre site; Biomed.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

32 TABLE C
CAPITAL IMPROVEMENT PROJECT (CIP) PLAN (FISCAL YEAR 2024-25)

PROJECT NAME
Funding
Source*
Total Project
Cost
Prior Years'
Funding FY 2024-25
CIP City
(Fund 301)
Park-In-
Lieu
Fees
(Fund
104)
Impact
Fees -
Park
Facility
(Fund 142)
Measure A
(Fund 102)
Gas Tax
2103
(Fund 103)
SB1
(FUND
119)
Measure
W
(Fund 136)
Wastewater
Capital
Investment
(Fund 455)
Building
Maint
Internal
Service
Fund
(Fund 505)

BUILDING PROJECTS
BD-02 (CIP 301-700) FUEL

SYSTEMS IMPROVEMENTS
(2021-2022)
CC $4,000,000 $3,077,946 $922,054 $922,054 $0 $0 $0 $0 $0 $0 $0 $0 BD-03 (CIP 301-708) RENOVATE

ELEVATORS IN CITY
BUILDINGS (2022-2023)
CC $1,000,000 $800,000 $200,000 $200,000 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL BUILDING PROJECTS 2 $5,000,000 $3,877,946 $1,122,054 $1,122,054 $0 $0 $0 $0 $0 $0 $0 $0

PARKS PROJECTS
PK-01 (CIP 301-678)

RECREATION CENTER
REBUILD (2017-2018)

CC/PIL/

PIF/BMF
$64,467,000 $55,374,250 $9,092,750 $5,907,250 $745,000 $594,000 $0 $0 $0 $0 $0 $1,846,500 PK-02 (CIP 301-712)

EDGEWATER PARK SOFTBALL

AND SOCCER SYNTHETIC
RESURFACING (2023-2024)
CC $1,250,000 $900,000 $350,000 $350,000 $0 $0 $0 $0 $0 $0 $0 $0 PK-03 (CIP 301-714) SEA

CLOUD MAINTENANCE SHED
(2023-2024)
CC $2,300,000 $300,000 $2,000,000 $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 PK-04 (NEW CIP) CITY HALL

EXTERIOR REHABILITATION
(FY 2024-2025)
CC $200,000 $0 $200,000 $200,000 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL PARKS PROJECTS 4 $68,217,000 $56,574,250 $11,642,750 $8,457,250 $745,000 $594,000 $0 $0 $0 $0 $0 $1,846,500

STORMWATER/LAGOON

PROJECTS
SW-02 (CIP 301-718) LAGOON

PUMP STATION BUILDING
REHABILITATION (2023-2024)
CC $670,000 $200,000 $470,000 $470,000 $0 $0 $0 $0 $0 $0 $0 $0 SW-03 (NEW CIP) LAGOON

INTAKE STRUCTURE
REHABILITATION (2024-2025)
CC $30,000 $0 $30,000 $30,000 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL STORMWATER/
LAGOON PROJECTS 2 $700,000 $200,000 $500,000 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 (Continued to next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

33 (Continued from previous page)

TABLE C
CAPITAL IMPROVEMENT PROJECT (CIP) PLAN (FISCAL YEAR 2024-25)

PROJECT NAME
Funding
Source*
Total Project
Cost
Prior Years'
Funding FY 2024-25
CIP City
(Fund 301)
Park-In-
Lieu Fees
(Fund 104)
Impact
Fees -
Park
Facility
(Fund 142)
Measure A
(Fund 102)
Gas Tax
2103
(Fund 103)
SB1
(FUND
119)
Measure
W
(Fund 136)
Wastewater
Capital
Investment
(Fund 455)
Building
Maint
Internal
Service
Fund
(Fund 505)

STREETS/TRAFFIC PROJECTS
ST-01 (CIP 301-698) TRAFFIC

SIGNAL SYSTEM UPGRADES
(2020-2021)
SB1/MW/

ERF/TIF/
CC
$1,625,000 $625,000 $1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 ST-02 (CIP 301-715)

SUBSTRUCTURE AND

SUPERSTRUCTURE BRIDGE
IMPROVEMENTS (2023-2024)
SB1 $1,150,000 $400,000 $750,000 $0 $0 $0 $0 $0 $750,000 $0 $0 $0 ST-03 (NEW CIP) STREET

REHABILITATION AND PARK

PATHWAY RESTORATION
(2024-2025)
MA/GT/CC $1,800,000 $0 $1,800,000 $300,000 $0 $0 $1,000,000 $500,000 $0 $0 $0 $0

TOTAL STREETS/TRAFFIC
PROJECTS 3 $4,575,000 $1,025,000 $3,550,000 $300,000 $0 $0 $1,000,000 $500,000 $750,000 $1,000,000 $0 $0

WATER PROJECTS
None — $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL WATER PROJECTS 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

WASTEWATER PROJECTS
WW-01 (CIP 455-652)

WASTEWATER TREATMENT

PLANT MASTER PLAN
IMPROVEMENTS (2015-2016)
CWW $162,519,482 $154,294,219 $8,225,263 $0 $0 $0 $0 $0 $0 $0 $8,225,263 $0 WW-02 (CIP 455-705)

EMERGENCY GENERATOR
REPLACEMENTS (2021-2022)
CWW $4,200,000 $2,300,000 $1,900,000 $0 $0 $0 $0 $0 $0 $0 $1,900,000 $0 WW-03 (CIP 455-710) SHELL

BRIDGE SANITARY SEWER

FORCE MAIN REHABILITATION
(2022-2023)
CWW $1,000,000 $500,000 $500,000 $0 $0 $0 $0 $0 $0 $0 $500,000 $0

TOTAL WASTEWATER
PROJECTS 3 $167,719,482 $157,094,219 $10,625,263 $0 $0 $0 $0 $0 $0 $0 $10,625,263 $0 GRAND TOTAL 14 $246,211,482 $218,771,415 $27,440,067 $10,379,304 $745,000 $594,000 $1,000,000 $500,000 $750,000 $1,000,000 $10,625,263 $1,846,500

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

34 TABLE D
ACTIVE AND PROPOSED CIP'S THROUGH FY 2028-29
ACTIVE

PROJECT DESCRIPTION
FY
AUTH

PRIOR YRS

BUDGET &
ADJ

CURRENT

YR BUDGET
& ADJ
(2023-24)
TOTAL

APPROVED

BUDGET &
ADJ 2024-25 2025-26 2026-27 2027-28 2028-29

ESTIMATED
TOTAL

PROJECT
BUDGET
455-626

SANITARY SEWER LIFT STATION IMPROVEMENTS PROJECT-
PHASE 5 (2012-2013) 12-13 $8,075,000 $0 $8,075,000 $0 $0 $0 $0 $0 $8,075,000 301-635

MEDIAN MODIFICATIONS - FOSTER CITY BLVD AT CHESS
DRIVE - MP#3 (2013-2014, 2014-2015) 13-14 $345,540 $573,629 $919,169 $0 $0 $0 $0 $0 $919,169 405-636

WATER SYSTEM IMPROVEMENTS AND VALVE
REPLACEMENTS (2013-2014) 13-14 $1,550,000 $1,550,000 $0 $0 $0 $0 $0 $1,550,000 301-637
ROAD WIDENNG-FOSTER CTY BLVD AT CHESS DRIVE-MP#7
(2013-2014, 2015-2016) 15-16 $1,141,000 $1,549,000 $2,690,000 $0 $0 $0 $0 $0 $2,690,000 455-652

WASTEWATER TREATMENT PLANT MASTER PLAN
IMPROVEMENTS (2015-2016) 15-16 $143,164,430 $11,129,789 $154,294,219 $8,225,263 $1,877,312 $0 $0 $0 $164,396,794 301-655

PARK INFRASTRUCTURE IMPROVEMENTS- LEO RYAN PARK
LAWN CONVERSION AND BOCCE COURTS (2015-2016) 15-16 $925,000 $0 $925,000 $0 $0 $0 $0 $0 $925,000 327-657

LEVEE PROTECTION PLANNING AND IMPROVEMENTS
PROJECT - Prior years were in 301-657 (2015-2016) 15-16 $90,000,000 $4,900,137 $94,900,137 $0 $0 $0 $0 $0 $94,900,137 405-660 WATER TANK IMPROVEMENTS PROJECT (2016-2017) 16-17 $5,700,000 $100,000 $5,800,000 $0 $0 $0 $0 $0 $5,800,000 301-677

LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING
(2017-2018) 17-18 $120,000 $0 $120,000 $0 $0 $200,000 $0 $0 $320,000 301-678 RECREATION CENTER REBUILD PROJECT (2017-2018) 17-18 $55,374,250 $0 $55,374,250 $9,092,750 $467,000 $0 $0 $0 $64,934,000 301-681 NEW TRAFFIC SIGNALS AT VARIOUS LOCATIONS (2018-2019) 18-19 $4,238,970 $0 $4,238,970 $0 $0 $0 $0 $0 $4,238,970 301-682
PARK SYSTEM MASTER PLAN (fka: PARK SYSTEM
IMPROVEMENTS) (2018-2019) 18-19 $484,500 $0 $484,500 $0 $0 $0 $0 $0 $484,500 301-685 HVAC IMPROVEMENTS IN CITY BUILDINGS (2018-2019) 18-19 $2,040,000 $2,040,000 $0 $0 $0 $0 $0 $2,040,000 301-690

SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION
(2019-2020) 19-20 $550,000 $550,000 $0 $0 $0 $0 $0 $550,000 301-693 ROOF REPLACEMENT (2019-2020) 19-20 $1,235,000 $315,000 $1,550,000 $0 $0 $0 $0 $0 $1,550,000 455-695
LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS (FY
2020-2021) 20-21 $1,800,000 $0 $1,800,000 $0 $0 $0 $0 $0 $1,800,000 455-696 SANITARY SEWER SYSTEM IMPROVEMENTS (2020-2021) 20-21 $900,000 $0 $900,000 $0 $0 $0 $0 $0 $900,000 301-697 STREET REHABILITATION (FY 2020-2021) 20-21 $1,560,000 $0 $1,560,000 $0 $0 $0 $0 $0 $1,560,000 301-698 TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) 20-21 $525,000 $100,000 $625,000 $1,000,000 $4,825,000 $3,000,000 $0 $0 $9,450,000 301-699

CORPORATION YARD WORKSHOPS EXTERIOR PAINT
(2020-2021) 20-21 $200,000 $0 $200,000 $0 $0 $0 $0 $0 $200,000 301-700 FUEL SYSTEMS IMPROVEMENTS (2021-2022) 21-22 $3,077,946 $3,077,946 $922,054 $0 $0 $0 $0 $4,000,000 301-702 PARK PATHWAY RESTORATION (2021-2022) 21-22 $300,000 $300,000 $0 $0 $0 $0 $0 $300,000 301-703 STREET REHABILITATION (2021-2022) 21-22 $3,200,000 $3,200,000 $0 $0 $0 $0 $0 $3,200,000 405-704
LARGE WATER METER REPLACEMENTS (fka: WATER

TRANSMISSION AND DISTRIBUTION SYSTEMS
IMPROVEMENTS)(2021-2022) 21-22 $1,250,000 $1,250,000 $0 $0 $0 $0 $0 $1,250,000 455-705 EMERGENCY GENERATOR REPLACEMENTS (2021-2022) 21-22 $2,300,000 $2,300,000 $1,900,000 $2,000,000 $0 $0 $0 $6,200,000 301-706 GOVERNMENT CENTER REHABILITATION (2022-2023) 22-23 $200,000 $200,000 $0 $0 $0 $0 $0 $200,000 301-707 INSTALL REAR SECURITY GATES (2022-2023) 22-23 $500,000 $500,000 $0 $0 $0 $0 $0 $500,000 301-708 RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) 22-23 $800,000 $800,000 $200,000 $0 $0 $0 $0 $1,000,000 301-709 SEA CLOUD PARK S4 SYNTHETIC RESURFACING (2022-2023) 22-23 $1,170,000 $1,170,000 $0 $0 $0 $0 $0 $1,170,000 (Continued to next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

35 (Continued from last page)

TABLE D
ACTIVE AND PROPOSED CIP'S THROUGH FY 2028-29
ACTIVE

PROJECT DESCRIPTION
FY
AUTH

PRIOR YRS

BUDGET &
ADJ

CURRENT

YR BUDGET
& ADJ
(2023-24)
TOTAL

APPROVED

BUDGET &
ADJ 2024-25 2025-26 2026-27 2027-28 2028-29

ESTIMATED
TOTAL

PROJECT
BUDGET
455-710

SHELL BRIDGE SANITARY SEWER FORCE MAIN
REHABILITATION (2022-2023) 22-23 $500,000 $500,000 $500,000 $0 $0 $0 $0 $1,000,000 301-711 POLICE STATION KITCHEN REMODEL (2023-2024) 23-24 $0 $130,000 $130,000 $0 $0 $0 $0 $0 $130,000 301-712

EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC
RESURFACING (2023-2024) 23-24 $0 $900,000 $900,000 $350,000 $0 $0 $0 $0 $1,250,000 301-713 LIGHT INSTALLATION AT BOOTHBAY PARK (2023-2024) 23-24 $0 $250,000 $250,000 $0 $0 $0 $0 $0 $250,000 301-714 SEA CLOUD MAINTENANCE SHED (2023-2024) 23-24 $0 $300,000 $300,000 $2,000,000 $0 $0 $0 $0 $2,300,000 301-715

SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE
IMPROVEMENTS (2023-2024) 23-24 $0 $400,000 $400,000 $750,000 $0 $0 $0 $0 $1,150,000 301-716

STREET REHABILITATION AND PARK PATHWAY
RESTORATION (2023-2024) 23-24 $0 $2,478,247 $2,478,247 $0 $0 $0 $0 $0 $2,478,247 301-717

ADD THIRD AND FOURTH LAGOON PUMP AND RELATED
INFRASTRUCTURE (2023-2024) 23-24 $0 $2,000,000 $2,000,000 $0 $2,000,000 $0 $0 $0 $4,000,000 301-718

LAGOON PUMP STATION BUILDING REHABILITATION
(2023-2024) 23-24 $0 $200,000 $200,000 $470,000 $4,950,000 $4,300,000 $0 $0 $9,920,000 455-719
SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6
(2023-2024) 23-24 $0 $600,000 $600,000 $0 $7,900,000 $1,000,000 $0 $0 $9,500,000 NEW CITY HALL EXTERIOR REHABILITATION (FY 2024-2025) 24-25 $0 $0 $0 $200,000 $0 $0 $0 $0 $200,000 NEW

STREET REHABILITATION AND PARK PATHWAY
RESTORATION (2024-2025) 24-25 $0 $0 $0 $1,800,000 $0 $0 $0 $0 $1,800,000 NEW LAGOON INTAKE STRUCTURE REHABILITATION (2024-2025) 24-25 $0 $0 $0 $30,000 $50,000 $700,000 $0 $0 $780,000 NEW LARGE WATER VALVE REPLACEMENT (2026-2027) 26-27 $0 $0 $0 $0 $0 $1,000,000 $500,000 $0 $1,500,000 NEW SANITARY SEWER MANHOLE REPLACEMENTS (2025-2026) 25-26 $0 $0 $0 $0 $500,000 $2,000,000 $0 $0 $2,500,000 NEW

DOG PARK INFRASTRUCTURE UPGRADE AND SYNTHETIC
TURF REPLACEMENT (2025-2026) 25-26 $0 $0 $0 $0 $500,000 $0 $0 $0 $500,000 NEW

TENNIS AND BASKETBALL COURTS RESURFACING
(2025-2026) 25-26 $0 $0 $0 $0 $320,000 $0 $0 $0 $320,000 NEW

BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT
(2025-2026) 25-26 $0 $0 $0 $0 $75,000 $250,000 $0 $0 $325,000 NEW

STREET REHABILITATION AND PARK PATHWAY
RESTORATION (2025-2026) 25-26 $0 $0 $0 $0 $1,800,000 $0 $0 $0 $1,800,000 NEW FIRE AND RESCUE BOAT RAMP REHABILITATION (2026-2027) 26-27 $0 $0 $0 $0 $0 $80,000 $0 $200,000 $280,000 NEW WATER MAIN CONDITION ASSESSMENT (2025-2026) 25-26 $0 $0 $0 $0 $250,000 $0 $0 $0 $250,000 NEW

PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON
E. THIRD AVE. (2025-2026) 25-26 $0 $0 $0 $0 $300,000 $700,000 $0 $0 $1,000,000 NEW CATAMARAN PARK IMPROVEMENTS (2026-2027) 26-27 $0 $0 $0 $0 $0 $550,000 $0 $0 $550,000 NEW
CATAMARAN AND SEA CLOUD S3 SYNTHETIC RESURFACING
(2026-2027) 26-27 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $1,800,000 (Continued to next page)

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

36 (Continued from previous page)

TABLE D
ACTIVE AND PROPOSED CIP'S THROUGH FY 2028-29
ACTIVE

PROJECT DESCRIPTION
FY
AUTH

PRIOR YRS

BUDGET &
ADJ

CURRENT

YR BUDGET
& ADJ
(2023-24)
TOTAL

APPROVED

BUDGET &
ADJ 2024-25 2025-26 2026-27 2027-28 2028-29

ESTIMATED
TOTAL

PROJECT
BUDGET
NEW

AMPHITHEATER SYNTHETIC TURF RESURFACING
(2026-2027) 26-27 $0 $0 $0 $0 $0 $120,000 $0 $0 $120,000 NEW

STREET REHABILITATION AND PARK PATHWAY
RESTORATION (2026-2027) 26-27 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $1,800,000 NEW
COATING ON 24-INCH TRANSMISSION MAIN AT SEAL
SLOUGH BRIDGE (2026-2027) 26-27 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 NEW

REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS
(2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $500,000 $0 $500,000 NEW REPLACE CITY HALL AND FIRE STATION ROOF (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $500,000 $0 $500,000 NEW GULL PARK RENOVATION (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $3,810,000 $0 $3,810,000 NEW MARLIN PARK RENOVATION (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $3,900,000 $0 $3,900,000 NEW BOOTHBAY PARK SITE IMPROVEMENTS (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $500,000 $3,500,000 $4,000,000 NEW STREET REHABILITATION (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $1,800,000 $0 $1,800,000 NEW

WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT
(2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $125,000 $0 $125,000 NEW

TWO ENGINES AND PUMP REPLACEMENT AT WATER
BOOSTER PUMP STATION (2027-2028) 27-28 $0 $0 $0 $0 $0 $0 $375,000 $600,000 $975,000 NEW

OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP
POWER STUDY (2026-2027) 26-27 $0 $0 $0 $0 $0 $0 $100,000 $1,000,000 $1,100,000 NEW

SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE
7 (2028-2029) 28-29 $0 $0 $0 $0 $0 $0 $0 $3,200,000 $3,200,000 NEW EAST HILLSDALE BOULEVARD LOOP (2028-2029) 28-29 $0 $0 $0 $0 $0 $0 $0 $138,000 $138,000 TOTAL $333,226,636 $25,925,802 $359,152,438 $27,440,067 $27,814,312 $18,500,000 $12,110,000 $13,163,000 $458,179,817

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

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

This project will complete the Library building exterior improvements on the southwest side of the building.

Staff has cured prior water intrusion issues by removing soil away from the northwest wall of the building.

Half of the area has been re-landscaped in house by Parks staff into an attractive drought tolerant and water efficient habitat garden to attract pollinators such as butterflies and hummingbirds.

This project will provide for permanently removing the earth around the southwest wall of the library building, sealing the wall, installing wall drains and drainpipes, re-grading the earth around the exterior of the building, removing trees, and installing new landscaping and sidewalk on the north side of Civic Center Drive. The soil removal and landscaping will be performed in-house by staff. A consultant will develop project plans and specifications to seal the wall and install appropriate drainage from the building and incorporate the hardscape and landscape improvements.

The roots of the trees adjacent to the north wall of the library could contribute to water intrusion as well as eventual long-term damage to the building structure in the future. This CIP would provide funding to remove the trees.

Finally, this project will include improving the curb ramps at the Library/Community Center building to current Americans with Disability Act (ADA) standards.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP -
City $0 $0 $200,000 $0 $0 $200,000
Total Funding
Sources $0 $0 $200,000 $0 $0 $200,000
Expenditures
Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project
Costs $0 $0 $171,600 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $10,200 $0 $0
Total $0 $0 $181,800 $0 $0 $18,200 $200,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

38 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN BD-02 (CIP 301-700)
FUEL SYSTEMS IMPROVEMENTS (2021-2022)
Project Category: A
Project Description:

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

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

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

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

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

Staff identified the need to replace the fuel systems due to safety, environmental, and regulatory compliance concerns. In addition, replacement parts for the dispensers are not readily available as the dispenser manufacturer is no longer in business, and the current Petro Vend fuel control software is no longer supported. Furthermore, SB 445 requires the permanent closure of single walled underground storage tanks by December 31, 2025.

The project scope includes (1) removal and replacement of the unleaded and diesel fuel systems and tanks; (2) replacement of all or part (dispensers, electrical, software) of the unleaded and diesel fuel systems; and (3) replacement of the 210 gallon day tank located in the lagoon pump house.

A contract was awarded to Tait Environmental Services, Inc. on February 11, 2021, in the amount of $44,527 to perform an assessment of the City’s fuel systems and provide replacement and rehabilitation alternatives, and address permitting and soil remediation. A technical memorandum outlining recommendations for improvements including construction cost estimates was prepared.

A subsequent contract was awarded to Tait Environmental Services, Inc. on May 1, 2023, for design services. Design and permitting are currently underway and expected to be completed in early Fall 2024 with construction to follow in 2025. Based on the current construction cost estimates, approximately $922,000 is required to fully fund construction.

Estimated Project Schedule:

Design: FY 2023-24
Construction: FY 2024-2025

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

39 Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $922,054 $0 $0 $0 $0 $0 $922,054
Total Funding Sources $922,054 $0 $0 $0 $0 $922,054
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $801,800 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $801,800 $0 $0 $0 $0 $120,254 $922,054

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

40 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN BD-03 (CIP 301-708)
RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023)
Project Category: B
Project Description:

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

The elevators to be addressed by this project are located in City Hall, the Fire Station, Community Center and Corporation Yard Administration Building.

Estimated Project Schedule:

Design: FY 2024-2025
Construction: FY 2024-2025
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $200,000 $0 $0 $0 $0 $200,000
Total Funding Sources $200,000 $0 $0 $0 $0 $200,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $173,900 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $173,900 $0 $0 $0 $0 $26,100 $200,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

41 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN BD-04 (NEW CIP)
REPLACE CITY HALL AND FIRE STATION ROOF (2027-2028)
Project Category: B
Project Description:

The City Hall and Fire Station roofs were installed when the Government Center Improvements Project was constructed in 2002. Staff has performed ongoing maintenance and repairs to address identified leaks and issues related to the roof. This project will address water infiltration that has occurred from the exterior into the City Hall and Fire Station building interiors that result from failure of joint sealant on the building exterior.

This project will seal exterior walls and refurbish the roof and walls for the Fire Station and City Hall. This project will not be replacing the metal portions of the roof which remain under warranty.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 505 - Building
Maintenance Fund $0 $0 $0 $500,000 $0 $500,000
Total Funding Sources $0 $0 $0 $500,000 $0 $500,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $398,900 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $35,900 $0
Total $0 $0 $0 $434,800 $0 $65,200 $500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

42 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN BD-05 (NEW CIP)
REPLACE COUNCIL CHAMBERS HVAC (2028-2029)
Project Category: B
Project Description:

Due to the age and capacity of the Heating/Ventilation/Air Conditioning (HVAC) at the City Council Chambers, the existing system needs to be replaced and upgraded. The HVAC system is 20 years old and near the end of its useful life. Additionally, the maximum operation of the HVAC system is not sufficient to meet the needs of users when the Council Chambers are at full capacity. In particular, the cooling capacity of the system cannot accommodate a fully occupied Council Chambers, resulting in an overheated environment.

The project includes replacing and upgrading four (4) air conditioning condensers and verifying the condition of and replacing damaged or aged system parts such as boots and pans. A qualified professional will be engaged to perform an inspection of the facilities to establish the final scope of work prior to the preparation construction documents for bidding.

Estimated Project Schedule:

Design: FY 2028-2029
Construction: FY 2028-2029

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 505 - Building
Maintenance Fund $0 $0 $0 $0 $500,000 $500,000
Total Funding Sources $0 $0 $0 $0 $500,000 $500,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $388,300
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $46,500
Total $0 $0 $0 $0 $434,800 $65,200 $500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

43 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-01 (CIP 301-678)
RECREATION CENTER REBUILD (2017-2018)
Project Category: A
Project Description:

On January 23, 2019, the City Council by Minute Order No. 1585 accepted the Final Recreation Center Master Plan Conceptual Design Report. On January 31, 2022, the City Council received an update that included the results of a Community Survey to validate the Community Input that had been received in the extensive community engagement that was completed, pre-pandemic, in 2017. The City Council adopted Minute Order 1832, directing staff to 1) Accept the Recreation Center and Parks System Survey results, confirming staff has satisfied the City Council’s interest in validating programming and usage assumptions; 2) Proceed with a “build-to-budget” option for the Recreation Center in an amount not-to- exceed $55 million; and 3) Proceed with utilizing $36 million from the Capital Asset Acquisition and Replacement Fund and $19 million from the General Fund Reserves for the total not-to-exceed budget of $55 million for rebuilding the Recreation Center.

At the City Council regular meeting on November 21, 2022, the City Council awarded an agreement with Group 4 Architecture, Research + Planning, Inc. (“Group 4”) for professional design, bidding, and construction support services. The design phase began in January 2023 with the award of a construction management contract going to Griffin Structures. The construction management firm’s early involvement to assist with constructability review of the design plans will help provide a seamless design to construction process.

At the regular City Council meeting on September 18, 2023, staff and Group 4 presented to City Council a full schematic design presentation which included an estimate of probable construction costs and a list of bid alternatives with cost information for City Council’s consideration. The City Council accepted the schematic design budget estimate of $63,356,000 for the Project and provided direction on additional project enhancements to be included resulting in an increase to construction estimate by $2,172,000.

In addition, the City Council approved the temporary facilities and transition plan for the Project at the regular City Council meeting on November 6, 2023, resulting in an increase to the Project budget. When accounting for this increase, the increase to the construction budget estimate with the added Project enhancements, contingency and escalation factors, the current Project budget estimate is $65,943,000.

Following the City Council meeting on September 18, 2023, which showed the schematic design, the City Council directed staff to return to an upcoming meeting to present funding options that would help address the additional funding that the Project would require to address the budget shortfall, which is $10,567,750, the difference between the Project budget appropriation of $55,375,250 and the current Project budget estimate of $65,943,000.

At the regular City Council meeting on January 16, 2024, the City Council provided direction on various strategies to address the Project budget shortfall. These strategies include a mix of revenue opportunities such as grants and development impact fees, as well as elimination and re-prioritization of other capital projects to free up funds to address the funding gap. The City Council’s action to eliminate the Bocce Court Expansion project from both the Project scope and budget reduced the Project budget by $1,009,000 resulting in the current budget shortfall of $9,559,750.

The funding sources outlined in the table below reflect the City Council actions at their regular meeting on January 16, 2024, as well as others identified by staff since the meeting.

1. Fund (301) includes funding from the Bocce Court Expansion Project (CIP 301-655) that resulted from the elimination of budget and scope from the Project, Gilead Grant Funding of $500,000, and $5,000,000 from the remaining Levee project funds which the City Council released and appropriated to the Project.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

44 2. Transfer of $1,846,500 from the Building Maintenance Fund (505) which were funds set aside for replacement of the current Recreation Center components such as the Roof, HVAC, Flooring and Paint.

3. Park Impact Fees totaling $1,061,000 which include $594,000 authorized and appropriated by the City Council from the Gilead building at 331 Lakeside Drive, and an additional $467,000 anticipated in year two of the Project for 388 Vintage Park Drive.

The design is anticipated to be completed in the Spring of 2024. Construction is anticipated to begin in September 2024 and is estimated to take 22 months.

Estimated Project Schedule:

Design: FY 2022-2023 through FY2023-2024
Construction: FY 2024-2025 through FY2026-2027

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 104 - Park-In-Lieu $745,000 $0 $0 $0 $0 $745,000
Fund 142 - Impact - Parks
Facilities $594,000 $467,000 $0 $0 $0 $1,061,000
Fund 301 - CIP - City $5,907,250 $0 $0 $0 $0 $5,907,250 Fund 505 - Building
Maintenance Fund $1,846,500 $0 $0 $0 $0 $1,846,500
Total Funding Sources $9,092,750 $467,000 $0 $0 $0 $9,559,750 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $7,906,700 $394,300 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $11,800 $0 $0 $0
Total $7,906,700 $406,100 $0 $0 $0 $1,246,950 $9,559,750

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

45 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-02 (CIP 301-712)
EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (2023-2024) Project Category: B
Project Description:

The synthetic turf surface at Edgewater Park Softball and Soccer Fields, installed in FY 2013-2014, is set for replacement in FY 2023-2024. The project involves replacing the existing field's synthetic turf surface and addressing the base material to eliminate depressions. Verde Landscape Design was selected for field design on October 23, 2023. The design is currently halfway complete, with an estimated cost of $875,000.00 covering both design and construction phases. Construction is scheduled to begin in July of 2024.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $350,000 $0 $0 $0 $0 $350,000
Total Funding Sources $350,000 $0 $0 $0 $0 $350,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $318,200 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $318,200 $0 $0 $0 $0 $31,800 $350,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

46 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-03 (CIP 301-714)
SEA CLOUD MAINTENANCE SHED (2023-2024)
Project Category: B
Project Description:

The current maintenance shed at Sea Cloud Park is nearing 40 years old and serves as the main maintenance facility for not only Sea Cloud Park but is also home to police communication equipment which is vital to public safety. The maintenance facility serves as primary storage of light and heavy park maintenance equipment, a staff work and break area, and storage space for sports user groups. Over the years the structure has had multiple roof repairs to address leaks and, despite multiple efforts to eradicate water damage, the building has suffered major dry rot and structural issues. The project scope will include the necessary improvements to help the facility meet current building codes. An initial structural assessment was performed as part of CIP 301-693 Roof Replacements at City Buildings Project.

Based on Council’s direction, staff is appropriating these funds from City CIP for FY 24/25. However, based on the FY24/25 CIP priorities and staff resources, staff proposes this project be deferred to a future fiscal year. The findings of the structural assessment will inform the timeline of this project.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $2,000,000 $0 $0 $0 $0 $2,000,000 Total Funding Sources $2,000,000 $0 $0 $0 $0 $2,000,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $1,739,100 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $1,739,100 $0 $0 $0 $0 $260,900 $2,000,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

47 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-04 (NEW CIP)
CITY HALL EXTERIOR REHABILITATION (FY 2024-2025)
Project Category: C
Project Description:

Due to drought restrictions, the water features located at the front of City Hall have been inactive for several years. This project involves design and construction of City Hall exterior improvements, including removal of the water feature closest to the council chambers. In its place, a shade structure with seating elements will be installed. Simultaneously, the fountain near the clock tower will be repurposed, transforming into a large planting bed equipped with drip irrigation. The landscaping along Hillsdale Blvd will undergo a refresh, replacing existing ground covers and converting to point source irrigation. This project will adopt a hybrid procurement approach, involving a combination of both City and contracted staff.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $200,000 $0 $0 $0 $0 $200,000
Total Funding Sources $200,000 $0 $0 $0 $0 $200,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $173,900 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $173,900 $0 $0 $0 $0 $26,100 $200,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

48 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-05 (NEW CIP)
DOG PARK INFRASTRUCTURE UPGRADE AND SYNTHETIC TURF REPLACEMENT (2025-2026) Project Category: B
Project Description:

The synthetic turf inside the dog park requires replacement every five to seven years due to the volume of high impact traffic it receives. This project consists of replacing approximately 10,000 square feet of existing synthetic turf and repairing the base material, as required, to eliminate depressions. Replacement of the underlying drainage system is required prior to replacement of the turf.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2025-2026
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $500,000 $0 $0 $0 $500,000
Total Funding Sources $0 $500,000 $0 $0 $0 $500,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $422,200 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $12,600 $0 $0 $0
Total $0 $434,800 $0 $0 $0 $65,200 $500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

49 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-06 (NEW CIP)
TENNIS AND BASKETBALL COURTS RESURFACING (2025-2026)
Project Category: C
Project Description:

Tennis and Basketball Court surfaces are typically resurfaced every five to seven years, based on an evaluation of the condition of each court, to ensure that they are safe to play on and aesthetically pleasing. The work will include asphalt section replacement, filling depressions, crack repair, acrylic resurfacing, acrylic color coat, and new line striping.

The following six (6) Tennis Courts and six (6) Basketball Courts were last resurfaced in FY 2017-2018 and are anticipated to need resurfacing in FY 2025-2026.

TENNIS COURTS:
• (4) Boothbay Park
• (2) Edgewater Park
BASKETBALL COURTS:

Full Courts:
• (1) Shad Park
• (1) Sunfish Park
• (1) Turnstone Park
• (1) Boothbay Park
Half Courts:
• (1) Port Royal Park
• (1) Ketch Park
Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2025-2026
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $320,000 $0 $0 $0 $320,000
Total Funding Sources $0 $320,000 $0 $0 $0 $320,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $282,500 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $8,400 $0 $0 $0
Total $0 $290,900 $0 $0 $0 $29,100 $320,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

50 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-07 (NEW CIP)
CATAMARAN PARK IMPROVEMENTS (2026-2027)
Project Category: B
Project Description:

Catamaran Park features several high use public amenities including tennis courts, basketball courts, playground, a synthetic surface playing field and running track. This project would add improvements that would conserve water, promote good health, provide additional community gathering space and provide enhancements that would improve and expand current park usage. Enhancements would include the following:
• Removal of passive grass area near basketball courts and replace with synthetic turf and new fitness structure.
• New concrete pad to connect with existing pads allowing for additional picnic areas with four new shade structures to provide shade and cooler temperatures for users.

The project scope, schedule, and budget will be informed by the Parks Master Plan Study and ADA transition plan recommendations currently underway.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $550,000 $0 $0 $550,000
Total Funding Sources $0 $0 $550,000 $0 $0 $550,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $451,300 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $27,000 $0 $0
Total $0 $0 $478,300 $0 $0 $71,700 $550,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

51 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-08 (NEW CIP)
CATAMARAN AND SEA CLOUD S3 SYNTHETIC RESURFACING (2026-2027) Project Category: B
Project Description:

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

Estimated Project Schedule:

Design: FY 2026-2027
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $1,800,000 $0 $0 $1,800,000 Total Funding Sources $0 $0 $1,800,000 $0 $0 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $1,543,800 $0 $0
Inflation % — % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $92,600 $0 $0
Total $0 $0 $1,636,400 $0 $0 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

52 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-09 (NEW CIP)
AMPHITHEATER SYNTHETIC TURF RESURFACING (2026-2027)
Project Category: C
Project Description:

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

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $120,000 $0 $0 $120,000
Total Funding Sources $0 $0 $120,000 $0 $0 $120,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $103,000 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $6,100 $0 $0
Total $0 $0 $109,100 $0 $0 $10,900 $120,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

53 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-10 (NEW CIP)

GULL PARK RENOVATION (2027-2028)
Project Category: B
Project Description:

This project will enhance Gull Park's accessibility and amenities by implementing a comprehensive improvement plan, including the design and installation of new ADA-compliant playground areas. (Funds for the playground structure are available in the Equipment Replacement Fund.) Planned project elements include upgrading the picnic area with a shade structure and barbecue, which will create comfortable gathering spaces that extend outdoor usability. Additionally, the project will incorporate a 2' - 3' concrete retaining wall to secure the sand in place and enhance safety and will elevate the park's visual appeal by enhancing landscaping with elements designed to discourage Canada Geese from frequenting the area.

The project scope, schedule, and budget will be informed by the Parks Master Plan Study and ADA transition plan recommendations currently underway.

Estimated Project Schedule:

Design: FY 2027-2028
Construction: FY 2027-2028
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $0 $3,550,000 $0 $3,550,000 Fund 502 - Equipment
Replacement Fund $0 $0 $0 $260,000 $0 $260,000
Total Funding Sources $0 $0 $0 $3,810,000 $0 $3,810,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $3,039,500 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $273,500 $0
Total $0 $0 $0 $3,313,000 $0 $497,000 $3,810,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

54 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-11 (NEW CIP)
MARLIN PARK RENOVATION (2027-2028)
Project Category: B
Project Description:

This project will enhance Marlin Park's accessibility and amenities by implementing a comprehensive improvement plan, including the design and installation of new ADA-compliant playground areas. (Funds for the playground structures are available in the Equipment Replacement Fund.) Planned project elements include upgrading the picnic area with a shade structure and barbecue which will create comfortable gathering spaces that extend outdoor usability. Additionally, the project will incorporate a 2' - 3' concrete retaining wall to secure the sand in place and enhance safety and will elevate the overall aesthetic by improving the landscaping and incorporating features to deter Canada Geese from inhabiting the park.

The project scope, schedule, and budget will be informed by the Parks Master Plan Study ad ADA transition Plan recommendations currently underway.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $0 $3,775,000 $0 $3,775,000 Fund 502 - Equipment
Replacement Fund $0 $0 $0 $125,000 $0 $125,000
Total Funding Sources $0 $0 $0 $3,900,000 $0 $3,900,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $3,111,300 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $280,000 $0
Total $0 $0 $0 $3,391,300 $0 $508,700 $3,900,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

55 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-12 (NEW CIP)
BOOTHBAY PARK SITE IMPROVEMENTS (2027-2028)
Project Category: B
Project Description:

Boothbay Park is a “destination” park that draws users for a wide variety of activities. This renovation project includes the installation of a “Family Playground” for users of all ages. It also provides for picnic site improvements, including the addition of 2-3 reservable picnic areas (to make a total of 3-4) that have covered seating, barbecue space, and open passive space. The renovation will elevate Boothbay Park as an inclusive, multi-generational, multi-cultural space for all users within the parks system.

The project scope, schedule, and budget will be informed by the Parks Master Plan Study and ADA transition plan recommendations currently underway.

Estimated Project Schedule:

Design: FY 2027-2028
Construction: FY 2028-2029

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 104 - Park-In-Lieu $0 $0 $0 $0 $2,050,000 $2,050,000 Fund 301 - CIP - City $0 $0 $0 $500,000 $1,340,000 $1,840,000 Fund 502 - Equipment
Replacement Fund $0 $0 $0 $0 $110,000 $110,000
Total Funding Sources $0 $0 $0 $500,000 $3,500,000 $4,000,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $398,900 $2,717,500
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $35,900 $326,000
Total $0 $0 $0 $434,800 $3,043,500 $521,700 $4,000,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

56 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-13 (NEW CIP)
PARKING LOT RESURFACING (2028-2029)
Project Category: B
Project Description:

Resurfacing the City-owned parking lots should be done every five to seven years. Maintenance items that are necessary to keep the parking lots in good condition include: removal and replacement of failed and root- damaged asphalt, installation of root barrier, slurry seal, and line striping. This will add to the general surface life of the asphalt before major repairs or replacements are needed.

Locations Include:

1. Boat Park

2. Boothbay Park

3. Civic Center and South Drive

4. Library/Community Center

5. Police Station

6. Port Royal

7. Sea Cloud Park large lot

8. Sea Cloud Park small lot

9. Senior Center
Estimated Project Schedule:

Design: FY 2028-2029
Construction: FY 2028-2029

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $0 $0 $600,000 $600,000
Total Funding Sources $0 $0 $0 $0 $600,000 $600,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $487,100
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $0 $58,400
Total $0 $0 $0 $0 $545,500 $54,500 $600,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

57 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN PK-14 (NEW CIP)
PORT ROYAL SYNTHETIC RESURFACING (2028-2029)
Project Category: B
Project Description:

The synthetic turf surfaces at Port Royal Park were installed in FY 2018-2019 and are scheduled for replacement in FY 2028-2029. The project consists of replacing the existing synthetic turf field surfaces and repairing the base material, as required, to eliminate depressions.

Estimated Project Schedule:

Design: FY 2028-2029
Construction: FY 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $0 $0 $925,000 $925,000
Total Funding Sources $0 $0 $0 $0 $925,000 $925,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $750,900
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $0 $90,000
Total $0 $0 $0 $0 $840,900 $84,100 $925,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

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

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

1. Citywide Communications Upgrade
The City’s existing traffic signal communications network is in need of an upgrade to help modernize its infrastructure. The current system operates over twisted-copper pair cables using 9,600-baud modems.

The communications upgrade will bring the City’s network to current standards, which will allow more flexibility with traffic operations enhancements such as improving traffic flow along the East Hillsdale Boulevard, Foster City Boulevard, and Edgewater Boulevard corridors. Upgrade options may include wireless improvements, ethernet over copper upgrade with some cellular improvements, an upgrade to fiber optic cables to maximize broadband capabilities, or a hybrid approach.

2. Traffic Signal Field Hardware Upgrade
• Vehicle and Pedestrian Signal Heads Replacement
• Accessible Pedestrian Signals (APS) Replacement
• Traffic Signal Cabinets Upgrades or replacements and retrofits onto existing cabinet foundations
• Battery Back-up System Upgrades

3. Traffic Signal Controllers Replacement
The traffic signal controller is considered the “brain” of the signalized intersection and processes detection inputs from the field and sends out signals to turn on and off the traffic signal indications. These field units communicate with the Central Computer System located in the Public Works Engineering office. The City uses a modern controller from Trafficware but the field hardware is reaching the end of its useful life.

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

Funding for the design and construction of the traffic signal system upgrades in this project will be provided by a combination of City CIP, Transportation Impact Fees,.and state funds. Total funding in excess of $8 million may be required to implement and fully fund the design and construction of the traffic signal system upgrades. Construction of the project is recommended to be scheduled on or after FY 2025-2026 to allow for cash reserves from non-General Fund funding sources to accumulate.

Estimated Project Schedule:

Technical Memorandum: FY 2024-2025
Design: FY 22024-2025 – FY2025-2026
Construction: FY 2025-2026 - FY 2026-2027

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

59 Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 119 - SB1 $0 $1,520,000 $700,000 $0 $0 $2,220,000
Fund 136 - Measure W $1,000,000 $500,000 $800,000 $0 $0 $2,300,000 Fund 144 - Impact -
Transportation $0 $325,000 $500,000 $0 $0 $825,000
Fund 301 - CIP - City $0 $2,000,000 $1,000,000 $0 $0 $3,000,000 Fund 502 - Equipment
Replacement Fund $0 $480,000 $0 $0 $0 $480,000
Total Funding Sources $1,000,000 $4,825,000 $3,000,000 $0 $0 $8,825,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $869,600 $4,073,500 $2,461,100 $0 $0 Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $122,200 $147,600 $0 $0
Total $869,600 $4,195,700 $2,608,700 $0 $0 $1,151,000 $8,825,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

60 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-02 (CIP 301-715)
SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (2023-2024) Project Category: B
Project Description:

This project addresses deficiencies in Bicentennial, Foster City Boulevard, Rainbow, and Shell Boulevard Bridges. Caltrans performs inspections of the above water bridge elements every two years and the underwater elements every five years and reports its findings to the City. The project will address deficiencies identified in the Caltrans inspection documents and any deficiencies identified by a consultant engineering firm working directly for the City. As no addressable deficiencies have been identified in Caltrans underwater inspections, the project budget does not include funds to repair underwater bridge elements. Additional funding may be requested for the design and construction of underwater bridge improvements, if any are identified.

BKF Engineers was awarded a contract for design services in February 2024. The design will be performed in two phases. The initial phase entails conducting a thorough examination of previous Caltrans bridge inspection reports alongside current on-site inspections. This process will result in the development of a Basis of Design report delineating the elements requiring improvements. The second phase will consist of the development of construction documents, including bid and construction support services.

Estimated Project Schedule:

Design: FY 2023-2024
Construction: FY 2024-2025
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 119 - SB1 $750,000 $0 $0 $0 $0 $750,000
Total Funding Sources $750,000 $0 $0 $0 $0 $750,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $652,200 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $652,200 $0 $0 $0 $0 $97,800 $750,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

61 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-03 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (2024-2025) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand its pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost-effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Bicycle improvements such as sharrow symbols/legends will be incorporated in this project as appropriate. All improvements will be designed per the latest City and National Standards. This includes accessibility upgrades complying with the City’s ADA Transition plan and all pavement work adhering to the requirements of the MRP3.0 (Municipal Regional Stormwater Permit) of the City’s NPDES (National Pollutant Discharge Elimination System) Permit that took effect on July 1, 2023.

As part of P-TAP, the City also receives a budgetary need analysis report based the most recent pavement inspections, treatment costs, and various budget scenarios. The ideal pavement strategy is to increase the network average Pavement Condition Index (PCI) from 79 to 83 and maintain it over a five- year period. Based on the 2021 report, the analysis of this strategy indicated a need for an amount of approximately $1,500,000 budgeted annually for the next five years.

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

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

Estimated Project Schedule:

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

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

62 Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 102 - Measure A $1,000,000 $0 $0 $0 $0 $1,000,000
Fund 103 - Gas Tax 2103 $500,000 $0 $0 $0 $0 $500,000
Fund 301 - CIP - City $300,000 $0 $0 $0 $0 $300,000
Total Funding Sources $1,800,000 $0 $0 $0 $0 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $1,636,400 $0 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $1,636,400 $0 $0 $0 $0 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

63 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-04 (NEW CIP)
BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (2025-2026) Project Category: C
Project Description:

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

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

Based upon the proposed project schedule, an RFP for assessment and design will be issued in 2025.

Construction is anticipated in 2026.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 105 - Measure M $0 $75,000 $250,000 $0 $0 $325,000 Total Funding Sources $0 $75,000 $250,000 $0 $0 $325,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $63,400 $205,100 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $1,800 $12,300 $0 $0
Total $0 $65,200 $217,400 $0 $0 $42,400 $325,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

64 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-05 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (2025-2026) Project Category: A
Project Description:

Ongoing maintenance of the public streets is essential. This project is intended to repair/resurface public streets. To implement this ongoing program in the most cost-effective manner, a Pavement Management Program (PMP) is used. The Metropolitan Transportation Commission’s Pavement Management Technical Assistance Program (P-TAP) provides the City with various resources to better understand its pavement condition including the PMP. Through the P-TAP, pavement consultants are hired to inspect City streets and update the PMP database every two to three years. The streets selected for the next CIP project are determined primarily through the PMP program analysis. The program also helps determine the most cost-effective treatment to extend the life of the roadway. The normal repair methods include crack seal, slurry seal, dig-out repairs, and surface overlays. The project also includes curb and gutter replacement and sidewalk repairs on the streets that are being repaired. Sharrow symbols/legends will be incorporated in this project as appropriate. All improvements will be designed per the latest City and National Standards. This includes accessibility upgrades complying with the City’s ADA Transition plan and all pavement work adhering to the requirements of the MRP3.0 (Municipal Regional Stormwater Permit) of the City’s NPDES (National Pollutant Discharge Elimination System) Permit that took effect on July 1, 2023.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2025-2026
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 102 - Measure A $0 $1,500,000 $0 $0 $0 $1,500,000
Fund 301 - CIP - City $0 $300,000 $0 $0 $0 $300,000
Total Funding Sources $0 $1,800,000 $0 $0 $0 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $1,588,800 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $47,600 $0 $0 $0
Total $0 $1,636,400 $0 $0 $0 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

65 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-06 (NEW CIP)
FIRE AND RESCUE BOAT RAMP REHABILITATION (2026-2027)
Project Category: B
Project Description:

The existing fire and rescue boat ramp provides access to the San Francisco Bay from the northeast tip of Mariner’s Point/north of Baywinds Park. The fire and rescue boat ramp is primarily used as a launching point for water rescue operations.

The purpose of the project is to relocate a new ramp at the northwest tip of Mariner’s Point to replace the existing ramp and improve accessibility for fire and rescue. The improvements will include temporary shoring, dewatering, demolition of the existing ramp, excavation and backfilling, and construction of various ramp improvements.

The boat ramp rehabilitation was originally included in the City’s Levee Improvement Project at Access Point #1, but was a scope item that had been added to the plans later in the design phase and was causing complications with the overall build. It was determined that the construction could potentially delay the delivery of the project as well as the re-opening of the Phase 3 portion of the Levee. As a result, this portion of the scope of work was removed from the levee project.

Estimated Project Schedule:

Permitting Requirements/Design: FY 2026-2027
Construction: FY 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $0 $80,000 $0 $200,000 $280,000 Total Funding Sources $0 $0 $80,000 $0 $200,000 $280,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $65,700 $0 $155,300
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $3,900 $0 $18,600
Total $0 $0 $69,600 $0 $173,900 $36,500 $280,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

66 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-07 (NEW CIP)
STREET REHABILITATION AND PARK PATHWAY RESTORATION (2026-2027) Project Category: A
Project Description:

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

Estimated Project Schedule:

Design: FY 2026-2027
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 102 - Measure A $0 $0 $1,000,000 $0 $0 $1,000,000
Fund 119 - SB1 $0 $0 $500,000 $0 $0 $500,000
Fund 301 - CIP - City $0 $0 $300,000 $0 $0 $300,000
Total Funding Sources $0 $0 $1,800,000 $0 $0 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $1,543,800 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $92,600 $0 $0
Total $0 $0 $1,636,400 $0 $0 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

67 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-08 (NEW CIP)
STREET REHABILITATION (2027-2028)
Project Category: A
Project Description:

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 102 - Measure A $0 $0 $0 $900,000 $0 $900,000
Fund 119 - SB1 $0 $0 $0 $900,000 $0 $900,000
Total Funding Sources $0 $0 $0 $1,800,000 $0 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $1,501,300 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $135,100 $0
Total $0 $0 $0 $1,636,400 $0 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

68 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN ST-09 (NEW CIP)
STREET REHABILITATION (2028-2029)
Project Category: A
Project Description:

Estimated Project Schedule:

Design: FY 2028-2029
Construction: FY 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 102 - Measure A $0 $0 $0 $0 $900,000 $900,000
Fund 119 - SB1 $0 $0 $0 $0 $900,000 $900,000
Total Funding Sources $0 $0 $0 $0 $1,800,000 $1,800,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $1,461,100
Inflation % 0 % 3 % 6 % 9 % 12 % 10.00 %
Inflation Escalation $0 $0 $0 $0 $175,300
Total $0 $0 $0 $0 $1,636,400 $163,600 $1,800,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

69 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN SW-01 (CIP 301-717)
ADD THIRD AND FOURTH LAGOON PUMP AND RELATED INFRASTRUCTURE (2023-2024) Project Category: A
Project Description:

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

Studies have shown that from 1974 to 2019 severe storms have become more frequent and grown in intensity due to climate change effects . When a significant storm event has occurred, there are short durations when both lagoon pumps have been in operation and the lagoon level has continued to rise.

This issue is expected to be exacerbated with both sea level rise and increased severity of atmospheric rivers predicted with climate change. This project will add a third and possibly fourth pump to the existing lagoon pump station which will provide the City with the redundancy to reduce the risk of flooding should a failure occur to either of the two existing pumps during a severe storm and high tide condition. It will also retrofit all four bay’s trash racks, two of which currently do not have any racks and two of which have a known deficiency of a 3-foot opening between the bottom of the trash rack and the base of the intake structure.

The two existing lagoon pumps were replaced in 2001 and are 20 years old. Although the useful life is approximately 35 years, if one were to fail, it could take several weeks to repair. In recent years, there have been incidents in which debris such as tires, etc. have caused a pump to fail. If this were to occur during a storm event, it would be catastrophic. Adding a third and fourth pump would allow for uninterrupted operation, redundancy, staggered replacement of the lagoon pumps, and provide maximum protection against the potential for flooding and property damage. More information and cost estimate updates are expected once preliminary engineering is finished.

Estimated Project Schedule:

Design: FY 2023-2024 through FY 2024-2025
Construction: FY 2024-2025 through FY 2025-2026

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $0 $2,000,000 $0 $0 $0 $2,000,000 Total Funding Sources $0 $2,000,000 $0 $0 $0 $2,000,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $1,688,500 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $50,600 $0 $0 $0
Total $0 $1,739,100 $0 $0 $0 $260,900 $2,000,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

70 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN SW-02 (CIP 301-718)
LAGOON PUMP STATION BUILDING REHABILITATION (2023-2024) Project Category: A
Project Description:

This project will provide for above and below grade improvements to the lagoon pump station building at the City’s Corporation Yard including but not limited to trash rack retrofits and any additional identified vulnerabilities that result from further structural evaluation.

The lagoon pump station located at the City/District’s Corporation Yard, houses two (2) engines/pumps used to pump lagoon water into the bay to control the water level in the interior lagoon. It was constructed in the early 1960’s and is one of the oldest City-owned buildings. Water flows through the culverts under the lagoon pump station building and is pumped into the Bay from the Lagoon Pump Station Building.

Severe concrete spalling has been noted in some locations on the building which adversely affects the structural integrity of certain elements of the facility. In addition, numerous structural code changes have been adopted since the design of this building and, as such, bringing this critical building up to code and increasing its seismic resilience is recommended.

In a report prepared by Murray Smith, Inc. in May 2021, as part of CIP 301-690 Sesimic Improvements project, recommendations were made to perform an in-depth evaluation of the building to include additional structural evaluation of the lagoon pump station building and the below water structures based on current building code standards. The recommendation included further structural investigation and analysis of the lagoon walkway, channels, trash racks (previously replaced in 2010), and foundation, to determine potential structural deficiencies with the intent to replace.

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

Originally, work at the lagoon intake structure near Wheel House Lane was included in this project. After careful consideration, a separate CIP has been identified in this year’s CIP (Lagoon Intake Structure Rehabilitation Project) to address deficiencies on its own timeline. A placeholder for funding for construction has been established in the CIP, which will be refined as the project scope is defined and cost estimates are developed based on needed improvements.

Estimated Project Schedule:

Technical Memorandum: FY 2023-2024

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $470,000 $4,950,000 $4,300,000 $0 $0 $9,720,000 Total Funding Sources $470,000 $4,950,000 $4,300,000 $0 $0 $9,720,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $408,700 $4,179,000 $3,527,500 $0 $0 Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $125,300 $211,600 $0 $0
Total $408,700 $4,304,300 $3,739,100 $0 $0 $1,267,900 $9,720,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

71 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN SW-03 (NEW CIP)
LAGOON INTAKE STRUCTURE REHABILITATION (2024-2025)
Project Category: A
Project Description:

This project was originally scoped to be part of CIP 301-718 – Lagoon Pump Station Building Rehabilitation. However, removing this portion of the work into a discrete CIP will provide greater flexibility for project management, as the project location and timelines may differ.

The City’s lagoon system intakes water via three pipes and a system of gates on the southern end of the City near Wheel House Lane. The interior structure, built in the late 1960s, has some deficiencies that are in need of repair and require further investigation to better understand the extent of necessary repairs.

The overall structure consists of an intake structure with three, 42-inch slide gates, three 42-inch reinforced concrete pipes that run from the bay to the lagoon under Sea Cloud park, and an outfall structure with three 42-inch flap gates. The flap gates have exceeded their useful life and are in need of replacement to ensure they work as designed. Concrete spalling has been noted on the outfall structure which needs to be investigated to see the extent of repairs needed.

Permits for this work are likely needed from both the Regional Water Quality Control Board (RWQCB) and the United States Army Corps of Engineers. (USACE). While these permits are not expected to place onerous restrictions on the project, they will take around 6 months to obtain and will restrict the working window for the project, which will impact project delivery time.

An investigative study is needed to fully scope the project and lay out any needed environmental and permit clearance. This will be followed by an engineering design and then construction of the needed rehabilitation.

Estimated Project Schedule:

Technical Memo: 2024-25
Design: FY 2025-26
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 301 - CIP - City $30,000 $50,000 $700,000 $0 $0 $780,000 Total Funding Sources $30,000 $50,000 $700,000 $0 $0 $780,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $26,100 $42,300 $574,300 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $1,200 $34,400 $0 $0
Total $26,100 $43,500 $608,700 $0 $0 $101,700 $780,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

72 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-01 (NEW CIP)
WATER MAIN CONDITION ASSESSMENT (2025-2026)
Project Category: B
Project Description:

This project was originally scoped to be part of (CIP 405-704) Water Transmission and Distribution Systems Improvements Project. However, it was moved into its own CIP to provide greater flexibility for project management as the project timelines differ. This project is identified in the Water Distribution System Master Plan. The 24-inch cement mortar lined and coated steel transmission main is the District’s sole source of water from SFPUC and was constructed in 1962. A condition assessment of the transmission main and other steel mains that comprise the backbone of the District’s water system was performed by Corrpro in 2005. Various internal surveys (video inspection and b-scan ultrasonic wall thickness) and external surveys (Corrscan coating, DCVG, close interval cathodic protection, and soil resistivity) were performed on representative samples of the District’s steel mains. At the time, the District’s steel mains were determined to be in very good condition. It is recommended that the District’s transmission main undergo a new assessment within the 20 year period. Findings from the assessment would be the basis for identifying future waterline improvements for incorporation into the CIP.

Estimated Project Timeline:

Assessment: FY 2025-2026
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $150,000 $0 $0 $0 $150,000
Fund 409 - Water Connection
Fees $0 $100,000 $0 $0 $0 $100,000
Total Funding Sources $0 $250,000 $0 $0 $0 $250,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $211,100 $0 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $6,300 $0 $0 $0
Total $0 $217,400 $0 $0 $0 $32,600 $250,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

73 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-02 (NEW CIP)
PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON E. THIRD AVE. (2025-2026) Project Category: A
Project Description:

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

As part of CIP 405-636 Water System Improvements and Valve Replacements Project, two 12-inch emergency water bypass connections, with isolation valves and fittings, were constructed on the transmission main beyond the ends of the bridge to provide a means of restoring water service quickly in the event of bridge and pipeline failure. As part of the project, 1,250 feet of 12-inch temporary bypass piping was purchased and is being stored at the District’s Corporation Yard. This pipe can be assembled by staff quickly (within 1-2 days) in an emergency to restore flow until the transmission main can be repaired.

This project provides for the construction of a permanent bypass pipe to be attached to the adjacent bridge on East Third Avenue and joined at the second bypass connection that was constructed as part of CIP 405-636. Acquisition of environmental permits for construction over the slough and coordination with the City of San Mateo will be required. The permanent bypass pipe would provide a redundant water supply immediately and increase speed of response during an emergency.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $300,000 $700,000 $0 $0 $1,000,000 Total Funding Sources $0 $300,000 $700,000 $0 $0 $1,000,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $253,400 $574,300 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $7,500 $34,400 $0 $0
Total $0 $260,900 $608,700 $0 $0 $130,400 $1,000,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

74 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-03 (NEW CIP)
LARGE WATER VALVE REPLACEMENT (2026-2027)
Project Category: B
Project Description:

This project is part of the District’s ongoing program of maintaining and upgrading the water system through the installation of new valves, replacement of existing valves (8-inches and larger) and various improvements to the water system to improve reliability and minimize service impacts to customers.

Valves included on the replacement list are either leaking, no longer functioning properly, or have reached the end of their useful life. The valves are discovered primarily through testing during the water main / fire hydrant flushing program. Additional valves are added to the project by inspecting the system and identifying the need for additional isolation valves to provide more reliable service to customers.

This on-going program helps keep the water distribution system in good condition to allow the provision of reliable service to the community. The program may include strategic use of line-stop technologies to minimize water service interruptions to large blocks of customers during the construction period.

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $1,000,000 $500,000 $0 $1,500,000 Total Funding Sources $0 $0 $1,000,000 $500,000 $0 $1,500,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $820,400 $398,900 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $49,200 $35,900 $0
Total $0 $0 $869,600 $434,800 $0 $195,600 $1,500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

75 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-04 (NEW CIP)
COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (2026-2027) Project Category: B
Project Description:

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

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

Estimated Project Schedule:

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

Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $500,000 $0 $0 $500,000
Fund 409 - Water Connection
Fees $0 $0 $500,000 $0 $0 $500,000
Total Funding Sources $0 $0 $1,000,000 $0 $0 $1,000,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $820,400 $0 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $49,200 $0 $0
Total $0 $0 $869,600 $0 $0 $130,400 $1,000,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

76 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-05 (NEW CIP)
REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS (2027-2028) Project Category: A
Project Description:

There are a total of six (6) Impressed Current Cathodic Protection (ICCP) sytems installed to protect the District’s steel transmission main and distribution mains from corrosion/rust. Further, there are three (3) ICCP systems installed to protect each of the District’s three 4 million gallon steel water storage tanks.

Each ICCP is comprised of a rectifier (controllable DC power supply), anode beds(s) and connections from the rectifier negative output terminal to the pipeline or structure being protected.

Continuing maintenance of the cathodic protection system is required to ensure sufficient protection is maintained on the structures in order to prevent external corrosion while maintaining the water system infrastructure. District staff takes readings of the rectifiers on a monthly basis, and annually tests the effectiveness of the existing cathodic protection system throughout the distribution system, replacing and adjusting the levels of the rectifiers as necessary. An assessment of the cathodic protection systems was performed in 2006 by Corrpro, and determined that there was approximately 20 years of useful life left in the existing anode beds studied.

This project will provide a condition survey of the anode beds associated with each impressed current cathodic protection system and make recommendations for replacement as needed. Based on the improvements required by the survey, a construction budget will be identified, and a funding request will be brought back to the City Council.

Estimated Project Schedule:

Design: FY 2027-2028
Construction/Installation: FY 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $0 $500,000 $0 $500,000
Total Funding Sources $0 $0 $0 $500,000 $0 $500,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $500,000 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15 %
Inflation Escalation $0 $0 $0 $0 $0
Total $0 $0 $0 $500,000 $0 $0 $500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

77 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-06 (NEW CIP)
WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT (2027-2028) Project Category: A
Project Description:

This project will address improvements at the Water Booster Pump Station located at the District’s Corporation Yard. The Water Booster Pump station houses four engines and pumps that are used to pump water from the District’s four storage tanks into the distribution system during periods of peak demand and to cycle the water in the storage tanks.

A contract with G&E Engineering Systems, Inc. was executed in summer 2012 to perform a seismic vulnerability assessment of the pump station. The report was completed in September 2013. The report cited the following recommended improvements: reinforcement of the building opening at the roll-up doors to prevent deformation or drifts resulting from a seismic event that may prevent the door from opening and closing; securing of equipment within the building; and installation of flexible connections on the underground utilities entering the building to allow differential movement during earthquakes.

Plans and specifications were prepared as part of CIP 660 Water Tank Improvements Project to address the recommended repairs. These improvements are scheduled to start construction in February 2024.

In the Water Master Plan prepared by HydroScience in May 2021, it was recommended that the District perform a seismic vulnerability assessment of its critical infrastructure every 10-15 years to maintain compliance with current seismic code regulations.

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

Estimated Project Schedule:

Preliminary Design and inspection: FY 2027-2028
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $0 $125,000 $0 $125,000
Total Funding Sources $0 $0 $0 $125,000 $0 $125,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $99,800 $0
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $8,900 $0
Total $0 $0 $0 $108,700 $0 $16,300 $125,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

78 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-07 (NEW CIP)
TWO ENGINES AND PUMP REPLACEMENT AT WATER BOOSTER PUMP STATION (2027-2028) Project Category: A
Project Description:

The Water Booster Pump Station houses six (6) pumps. Currently, there are two (2) electric powered motor driven pumps (installed in 2005), two (2) natural gas (with propane backup) powered engine driven pumps, and two (2) diesel powered engine driven pumps. Two (2) of the natural gas-powered engines and pumps were installed in 2018 and are operational. However, the two (2)-diesel powered engine drive pumps are over 40 years old and past their useful life. Currently those two are not operational.

This project provides for the removal and replacement of the 2 non-functioning diesel powered engines/ pumps with 2 new electric powered motor/pumps to provide maximum operational flexibility and additional redundancy. The project will also include Supervisory Control and Data Acquisition (SCADA) system upgrades to match the existing set up.

Estimated Project Schedule:

Design: FY 2027-2028
Construction/Installation: 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $0 $375,000 $600,000 $975,000 Total Funding Sources $0 $0 $0 $375,000 $600,000 $975,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $299,200 $465,900
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $26,900 $55,800
Total $0 $0 $0 $326,100 $521,700 $127,200 $975,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

79 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-08 (NEW CIP)
CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (2028-2029) Project Category: A
Project Description:

This project will address implementing long-term technology solutions for the water quality issues that Foster City experiences in winter months. This project provides for the design and construction of chlorine analyzers and automatic flushers throughout Foster City.

EMID purchases water treated with a disinfectant agent (chloramine) from the SFPUC. Chloramine disinfection is more environmentally friendly that other disinfectant options, but presents operational challenges for distribution system operators. If chloramine is allowed to remain in the distribution system for a lengthy period, the disinfectant can degrade, reducing the chlorine residual, adversely affecting water quality.

Successful water conservation efforts over the past years have reduced water demand, and as a result, water is subject to “aging” in the distribution system. In the winter months, when irrigation use is down and water demands are low, staff has observed chlorine residuals falling to actionable levels, forcing staff to flush hydrants to stimulate water circulation to increase the disinfectant levels in the water system. In 2022, staff performed an experiment to determine if irrigating sports fields at the furthest reaches of the system would improve system-wide disinfection levels. In partnership with the Parks Department, irrigation of City parks in strategic areas of the water distribution system was increased. Initial results have shown that residuals have improved. More time is also needed to monitor and validate data following installation of mixers as part of (CIP 405-660) Water Tank Improvements project which is starting construction in February 2024.

This project will install automatic flushers and chlorine analyzers at various key locations throughout the City. The chlorine analyzers will measure the level of disinfectant (chlorine residual) in the water in areas where water aging has been observed. At a specified threshold, the analyzers will trigger the automatic flushers to flush water through the system until the chlorine residuals are back to a non-actionable level.

The installation of chlorine analyzers and automatic flushers will save staff time in having to flush water mainlines manually, also saving the City funds in labor costs.

Estimated Project Schedule:

Design: FY 2027-2028
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $0 $0 $700,000 $700,000
Total Funding Sources $0 $0 $0 $0 $700,000 $700,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $543,500
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $65,200
Total $0 $0 $0 $0 $608,700 $91,300 $700,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

80 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WA-09 (NEW CIP)
EAST HILLSDALE BOULEVARD LOOP (2028-2029)
Project Category: B
Project Description:

The work will consist of the installation of approximately 40 feet of 8-inch potable water PVC pipe by connecting an existing 8-inch ACP pipeline with an existing 8-inch PVC pipeline, to improve the available fire flows in the area.

The project supports the District’s ongoing program to maintain and upgrade the water system to improve reliability and minimize service interruptions.

Estimated Project Timeline:

Design: FY 2028-2029
Construction: FY 2028-2029
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 405 - CIP - Water $0 $0 $0 $0 $138,000 $138,000
Total Funding Sources $0 $0 $0 $0 $138,000 $138,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $107,200
Inflation % 0 % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $12,800
Total $0 $0 $0 $0 $120,000 $18,000 $138,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

81 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-01 (CIP 455-652)
WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (2015-2016) Project Category: A
Project Description:

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

In accordance with the percentages of ownership of the WWTP established in the JPA (as lead agency, San Mateo owns approximately 75 percent and EMID owns approximately 25 percent), EMID is only responsible for its proportionate share of the relevant work related to the Wastewater Treatment Plant Master Plan improvements. The estimated share of the WWTP costs for EMID is approximately $164.4 million dollars. To date, $154,294,218 has been encumbered for this multi-year project. Approximately, an additional $10.1 million is anticipated over the next 3 years as shown in the funding table at the end of this Project Description.

Encumbered:

FY 2015-2016 $5,931,000 FY 2016-2017 $10,984,000 FY 2017-2018 $12,345,628 FY 2018-2019 $8,680,985 FY 2019-2020 $4,563,622 FY 2020-2021 $8,315,581 FY 2021-2022 $52,558,950 FY 2022-2023 $39,784,663 FY 2023-2024 $11,129,789 $154,294,218
Anticipated:

FY 2024-2025 through FY 2026-27 $10,102,575
Total Project Budget $164,396,793 In 2023 (year 9), the CWP continued to focus on the construction phase of the WWTP project to assist with full project delivery and execution of major improvement projects. Some notable accomplishments include the following:

WWTP Upgrade & Expansion Project
• Submitted the quarterly reports for Water Infrastructure Finance and Innovation Act (WIFIA) loan compliance.
• RHAA (Consultant) completed the final design for the WWTP interpretive signs. • Relocation of PG&E utilities from Detroit Drive was completed. • Continued revisions to the WWTP Final Parcel Map to comply with right of way dedications.

GMP-1 (Site Preparation, Electrical and Storm Drain System Improvements for GMP3) • Continued project closeout.

GMP-2 (Foundations for GMP3)
• Continued project closeout
GMP-3 (Nutrient Removal and Wet Weather Flow Management Upgrade and Expansion) • Completion of the installation of the Membrane Permeate (MP) line and the Secondary Effluent line (SE) in the East Corridor.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

82 • Completion of formwork, rebar installations and concrete pours for the walls and decks in all of the process areas including Area 51 (headworks); Area 52 (Primary clarifies; Area 54 (Bio-Actiflo); Area 55 (BNR); Area 56 MBR; Area 64 (Odor Control); and Area 70 (Chemical Storage Area). • Completion of the Administration Building including exterior framing, installation of roof, window and interior walls, utilities, exterior siding and installation of interior improvements. • Continued the installation of electrical and mechanical equipment in Areas 51, 52, 53, 55, 56, 64, and 70.
• Continued the installation of the canopy and tanks in Area 70 • Continued the installation of exterior and interior improvements for the new Warehouse. • Completed the improvements to the Sodium Hypochlorite System. • Continued the installation of improvements to the Sodium Bisulfate System • Continued the improvements to the Chlorine Contact Basins. • Completed the leak testing and protective coating for all the Area 51 basins and channels. • Installed the primary screens, grit chambers, and grit wash equipment in Area 51 • Began leak testing of the basins in Areas 52, 53, 55 and 56. • Completed the installation of the fire protective loop in Detroit Drive.

Annual Major Components -
• Natural Gas Pipeline Replacement (6 & 23) (replace existing 3-inch gas line) - Completed the project in November 2022.
• Digester Transfer Pump Improvements: Construction award November 2023 • 3 Water Pumping and Ferric to Combined Sludge Improvements: 60% design submittal provided by Carollo.
• Other AMC Packages: Biosolids and Energy Management Plan; DAFT Corrosion Improvements; Digester 1 Improvements; Centrifuge and Centrifuge Feed Pump Replacement; Solids Handling Systems I&C Improvements
In 2024 (Year 10), the CWP will continue to focus on full project delivery and execution of major improvement projects. Key Year 10 program activities include the following:
• Program administration, program controls, economic management, document management, oversight of 3rd party construction management teams, environmental permitting support, and public outreach.
• Continue closeouts of WWTP Upgrade and Expansion Project (GMP 1 and GMP 2). • Project management, construction management, and inspection for the following projects:
◦ WWTP Upgrade and Expansion Project (GMP 3)
▪ Immediate Action Project 2
▪ Immediate Action Project 3
▪ WWTP Annual Major Components Projects
• Continue project management for the Construction Manager at Risk (CMAR) (Sundt). • Complete construction of the Administration Building and Warehouse • Record WWTP final parcel map with the County
• Plant start-up
◦ Complete the training of the WWTP staff on the new processes. ◦ Complete the clean water loop testing and start-up of the new processes. ◦ Seed the new processes of the WWTP.
• Begin construction of the on-site improvements including, landscaping, pavement and security fencing.
• Begin conversions of the existing Aeration basins to Flow Equalization Basins.

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

83 Start-up and commissioning of new treatment facilities is targeted to be complete by September 2024, followed by commissioning of the integrated WWTP in October 2024, and the retrofit of existing facilities (EQ Basin) October 2024 through March 2025.

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

Estimated Project Schedule:

Design: Complete
Construction: Ongoing through FY 2024-2025
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $8,225,263 $1,877,312 $0 $0 $0 $10,102,575 Total Funding Sources $8,225,263 $1,877,312 $0 $0 $0 $10,102,575 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $8,225,263 $1,877,312 $0 $0 $0
Inflation % 0 % — % 6 % 9 % 12 % — %
Inflation Escalation $0 $0 $0 $0 $0
Total $8,225,263 $1,877,312 $0 $0 $0 $0 $10,102,575

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

84 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-02 (CIP 455-705)
EMERGENCY GENERATOR REPLACEMENTS (2021-2022)
Project Category: A
Project Description:

The project addresses the replacement of certain emergency generators and automatic transfer switches that are located at 10 of the District’s wastewater lift stations and are at the end of their useful life.

Emergency generators power lift stations when power from PG&E is interrupted or shut down. The automatic transfer switch senses when PG&E power is interrupted and causes the emergency generator to turn on.

The 48 lift stations, as parts of the EMID sanitary sewer collection system, pump and convey sewage to receiving manholes at higher elevations. Emergency generators are located at EMID’s 14 major lift stations. Without emergency generators, in the event of a power outage, lift stations could fill with sewage and possibly overflow.

This project addresses replacing the emergency generator and automatic transfer switch (ATS) at Lift Stations 10, 12, 14, 15, 16, 29, 43 and 59 and the emergency generator only at Lift Stations 22 and 26. $885,000 in funding has been appropriated from the equipment replacement fund for this project.

In August 2022, the District Board approved a professional services agreement with Freyer & Lauretta, Inc. (F&L), for the design of three critical and complex generator replacements at LS 22, 29, and 59. A basis of design report was prepared to evaluate generator sizing, pad sizing, and siting for the generators at these three lift stations, of which LS 29 requires additional work including relocation of the generator system from inside the Bank of America Building to within an easement on the property along Edgewater Blvd and permanent removal of underground fuel tank.. As part of the analysis, it was determined that the estimated lead time for the new generator systems and accompanying ATSs will be 42 to 60 weeks.

To minimize project delays, a pre-purchase package for the generators was released for bid in March 2024 with an intended purchase agreement to be executed in April 2024. While the systems are on order, F&L will continue to complete the preparation of the construction documents. An amendment to the existing contract with F&L will be brought forward to the City Council to include the remaining 7 generators into the design documents with the intent to bid all ten generators together in the Winter 2025.

Estimated Project Schedule:

Design: FY 2023-2024 to FY 2024-2025
Construction: FY 2025-2026
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $1,900,000 $2,000,000 $0 $0 $0 $3,900,000 Total Funding Sources $1,900,000 $2,000,000 $0 $0 $0 $3,900,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $1,652,200 $1,688,500 $0 $0 $0
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $50,600 $0 $0 $0
Total $1,652,200 $1,739,100 $0 $0 $0 $508,700 $3,900,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

85 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-03 (CIP 455-710)
SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (2022-2023) Project Category: A
Project Description:

This project will address the rehabilitation or replacement of the 16” cast iron force main attached to the Shell Bridge. In February 2021, repairs were completed on a 12-inch diameter hole located on the top side of the pipe, that was identified during a routine maintenance inspection. At the same time the air release valve located on the force main at the high point on the bridge was also replaced.

The force main was originally constructed in the 1960s. The force main is a critical facility which delivers over 500,000 gallons of sewage (approximately one fifth of the wastewater generated in the District) daily to the San Mateo Wastewater Treatment Plant. The localized failure of the pipe and air release valve is due to the corrosive environment of wastewater and repeated exposure to hydrogen sulfide gas. Other portions of this main may have similarly deteriorated and be vulnerable to failure.

The City has retained BKF Engineers to perform a preliminary assessment of the pipeline. . In May 2023, thickness testing along the pipe span was performed, to evaluate its current condition and determine the feasibility of lining it to extend its service life. A draft TM has been prepared documenting the field investigation findings. A basis of design report will be prepared to evaluate rehabilitation and/or replacement alternatives, followed by design of the recommended repair option.

Estimated Project Schedule:

Pipeline Investigation: 2023-2024
Preliminary Design/Design: 2024-2025
Construction: 2024-2025
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $500,000 $0 $0 $0 $0 $500,000 Total Funding Sources $500,000 $0 $0 $0 $0 $500,000
Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $434,800 $0 $0 $0 $0
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $0
Total $434,800 $0 $0 $0 $0 $65,200 $500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

86 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-04 (CIP 455-719)
SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (2023-2024) Project Category: A
Project Description:

This project is part of a multi-phase program started in 2000 to rehabilitate EMID's sanitary sewer lift stations. The lift station improvement projects take place every four to five years.

Lift stations pump wastewater from the low points in the collection system to manholes at higher elevations. The lift station improvement projects include preventative maintenance and upgrades to improve the reliability, durability, and sustainability of the lift stations. Phase 6 projects address deficiencies at Lift Stations 6, 9, 11, 13, 22, 29, 42 and 43. Lift station improvements generally include repairing the interior wet wells; replacing critical components, and electrical improvements including installation of additional systems to remotely monitor and control the lift stations. Design is anticipated to begin in FY25-26 to allow staff to address other priority projects first.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $0 $7,900,000 $1,000,000 $0 $0 $8,900,000 Total Funding Sources $0 $7,900,000 $1,000,000 $0 $0 $8,900,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $6,669,600 $820,400 $0 $0
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $200,000 $49,200 $0 $0
Total $0 $6,869,600 $869,600 $0 $0 $1,160,800 $8,900,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

87 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-05 (NEW CIP)
SANITARY SEWER MANHOLE REPLACEMENTS (2025-2026)
Project Category: A
Project Description:

The project is a continuation of the District's on-going program to repair and replace elements of the sanitary sewer collection system to extend the useful life of the system. The project is comprised of replacing 16 manholes identified in the Wastewater Collection System Master Plan and by staff as a part of routine maintenance.

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

These manholes operate as force main collectors, receiving wastewater flow from various lift stations.

During the condition assessment performed as part of the Wastewater Master Plan, Manholes 29-07, 18-01, 16-17, 14-02, 22-18, 22-19, 37-11, 29-31, 10-01, and 12-02 were witnessed to operate under turbulent conditions during force main discharge cycles. Additionally, staff has identified six (6) manholes located on trunk lines on East Hillsdale Boulevard, a major boulevard, and within busy intersections, adding complexity to their inspection and replacement: 29-08, 29-09, 29-10, 29-11, 29-12, and 29-13.

Replacement of these manholes and the intercepting piping will enhance station reliability and public safety.

Estimated Project Schedule:

Design: FY 2025-2026
Construction: FY 2026-2027
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $0 $500,000 $2,000,000 $0 $0 $2,500,000 Total Funding Sources $0 $500,000 $2,000,000 $0 $0 $2,500,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $422,200 $1,640,700 $0 $0
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $12,600 $98,400 $0 $0
Total $0 $434,800 $1,739,100 $0 $0 $326,100 $2,500,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

88 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-06 (NEW CIP)
OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (2026-2027) Project Category: B
Project Description:

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

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

This analysis will drive the prioritization of further redundancy measures and develop a cost/benefit analysis of those improvements. A placeholder for construction has been included. Based on the analysis, a construction budget will be refined and any additional funding required for construction will be brought back to the District Board.

Estimated Project Schedule:

Study: FY 2027-2028
Design/Construction: TBD
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $0 $0 $0 $100,000 $1,000,000 $1,100,000 Total Funding Sources $0 $0 $0 $100,000 $1,000,000 $1,100,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $79,900 $776,500
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $7,100 $93,100
Total $0 $0 $0 $87,000 $869,600 $143,400 $1,100,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

89 CIP PROJECT DESCRIPTION FOR FIVE-YEAR FINANCIAL PLAN WW-07 (NEW CIP)
SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 7 (2028-2029) Project Category: A
Project Description:

The project is part of a multi-phase program started in 2000 to rehabilitate EMID's sanitary sewer lift stations. The lift station improvement projects take place every four to five years.

The projects include preventative maintenance and upgrades to improve the reliability, durability, and sustainability of the lift stations. Lift stations in the District pump wastewater from the low points in the collection system to manholes at higher elevations.

The Phase 7 project addresses deficiencies at Lift Stations 36, 37, 38, and 39. The replacement of these lift stations will effectively remove the low capacity, capsule style, Gorman-Rupp dry deck lift stations which are mechanically unique and difficult to maintain for District maintenance staff. Removal of these outdated fiberglass dry deck stations will complete the conversion of all District lift stations to rail extraction, submersible pump style lift stations. Finalization of this conversion will establish uniformity across the District and ease the maintenance complexity for District staff. The project is expected to be a comprehensive replacement of all lift station features except the precast wet well, which will be equipped with a new traffic rated access hatch and concrete top.

Estimated Project Schedule:

Design: FY 2028-2029
Construction: FY 2029-2030
Funding Sources 2024-25 2025-26 2026-27 2027-28 2028-29 Total Fund 455 - CIP - Wastewater $0 $0 $0 $0 $3,200,000 $3,200,000 Total Funding Sources $0 $0 $0 $0 $3,200,000 $3,200,000 Expenditures Categories 2024-25 2025-26 2026-27 2027-28 2028-29 Contingency Total Estimated Project Costs $0 $0 $0 $0 $2,484,500
Inflation % — % 3 % 6 % 9 % 12 % 15.00 %
Inflation Escalation $0 $0 $0 $0 $298,100
Total $0 $0 $0 $0 $2,782,600 $417,400 $3,200,000

4.1 Attachment 1 - Proposed Capital Improvement Program FY 2024-2025 to FY 2028-2029

90 ATTACHMENT 2
PRIORITY PROJECTS FOR ACTIVE AND PROPOSED CIP'S THROUGH FY 2024-2025 PRIORITYPROJECT No. DESCRIPTION Status
1 327-657 LEVEE PROTECTION PLANNING AND IMPROVEMENTS PROJECT - (2015- 2016)
POST
CONSTRUCTION^
2 455-652 WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (FY 2015-2016) CONSTRUCTION
3 405-660 WATER TANKS AND FACILITIES IMPROVEMENTS (2016-2017) CONSTRUCTION 4 301-690 SEISMIC IMPROVEMENTS AT LAGOON PUMP STATION (2019-2020) CONSTRUCTION 5 301-678 RECREATION CENTER REPLACEMENT (2017-2018) CONSTRUCTION READY* 6 455-695 LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS (FY 2020-2021) CONSTRUCTION READY 7 301-635 MEDIAN MODIFICATIONS - FOSTER CITY BLVD AT CHESS DRIVE - MP#3 (2013-2014, 2014-2015) CONSTRUCTION READY
8 301-637 ROAD IMPROVEMENTS AT FOSTER CITY BLVD AT CHESS DRIVE - MP #4, #7, #8 (2013-2014) CONSTRUCTION READY
9 301-716 STREET REHABILITATION AND PARK PATHWAYS RESTORATION (FY23-24) CONSTRUCTION READY 10 301-718 LAGOON PUMP STATION BUILDING REHABILITATION DESIGN 11 301-717 ADD THIRD LAGOON PUMP AND RELATED INFRASTRUCTURE DESIGN 12 455-710 SHELL BRIDGE SANITARY SEWER FORCE MAIN REHAB (2022-2023) DESIGN 13 455-705 EMERGENCY GENERATOR REPLACEMENTS (FY 2021-2022) DESIGN 14 301-700 FUEL SYSTEMS IMPROVEMENTS (FY 2021-2022) DESIGN 15 301-712 EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING DESIGN 16 405-704 LARGE WATER METER REPLACEMENTS (Formerly Water Transmission and Distribution Systems Improvements) (2021-2022) DESIGN
^ Notice of Completion anticipated in Spring 2024; post-construction activities will continue. * Design anticipated to be complete with construction beginning FY 2024-25.

4.1 Attachment 2 - Priority Projects for Active and Proposed CIPs Through FY 2024-2025

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DATE: March 25, 2024

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

FROM: Andrew Brozyna, Public Works Director/City Engineer Derek Schweigart, Parks and Recreation Director
Edmund Suen, Finance Director
DEPARTMENT: Public Works
Parks and Recreation
Finance
SUBJECT: FIFTEEN YEAR GENERAL FUND CAPITAL IMPROVEMENT

PROJECTS PROGRAM AND FUNDING PLAN FOR THE
PREPARATION OF THE CITY’S FISCAL YEAR 2024-2025

BUDGET AND FIVE-YEAR FINANCIAL PLAN

RECOMMENDATION
It is recommended that the City Council receive and accept the City’s 15-year General Fund Capital Improvement Projects Program and its funding plan for the preparation of the City’s Fiscal Year 2024-2025 budget and 5-year financial plan.

EXECUTIVE SUMMARY
In 2010, the City Council approved a funding strategy for its capital improvement projects (CIP) in the form of a Long-Term CIP Funding program. The current model uses a 15- year capital expenditure forecast and funds those forecasted needs on an annual basis.

The City also generally refrains from using debt to finance its capital projects unless it is necessary because of the magnitude of the project (e.g., CIP 327-657 Levee Protection Planning and Improvements Project).

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Over these years, the prudent accumulation of CIP Fund resources is expected to yield an approximate $12.85 million of undesignated Reserve Balance (inclusive of a $2 million emergency reserve) by June 30, 2024. Based on the annual forecasted CIP costs in the 15-year CIP, annual General Fund transfers of $5.75 million to the City CIP Fund will be needed to support these City CIP projects for the City 5-year Financial Plan.

To prepare the recommended CIP, City staff performed an annual long-term review and made modifications, as appropriate, to the funding amounts and timing of future projects.

Projects have been analyzed in primarily two categories based on their separate funding sources:
•City Capital Projects Fund (City CIP Fund) – includes projects such as bridges, lagoon structures, levees, parks, and buildings, which are funded from General Fund sources.
•Streets-Related Funding – includes streets and traffic signal projects, which are funded first through sources from Measure A, Gas Tax §2103, Measure M, SB 1 (Road Maintenance and Rehabilitation Account), and Measure W funds.

The analysis for City CIP Fund projects and Street-Related projects takes into consideration the existing fund balance resources projected to be available as of June 30, 2024, based on the latest estimates of CIP activity through the end of the current fiscal year and projected revenues available from applicable revenue sources. The analysis for the City CIP Fund ensures that the reserve balances stay above the minimum $2 million emergency reserve level while the Streets-Related Funding analysis has no established minimum reserve level, since City CIP Funds can be drawn for those purposes in the case of an emergency.

Total City CIP projects over the 15-year time horizon are increasing from $98.73 million to $107.40 million with parks projects accounting for $47.78 million of the total. These park projects include $3.86 million in ancillary funding from Park In Lieu and Park Facility Infrastructure fees and $8.15 million from the City’s Internal Service Funds. Street projects total $24.61 million, of which $28.70 million are from Special Revenue Funds.

Storm Water and Lagoon projects total $20.50 million from the City CIP fund.

The Streets-Related Funding plan, which is based on a Pavement Management Technical Assistance Program (P-TAP) analysis, maintains a $1,500,000 annual expenditure for the next three years. Staff is recommending to then increase the expenditure to $1,800,000 in years four and five due to the rising cost of projects and in order to bring the City’s current 79 Pavement Condition Index (PCI) to 83 and maintain it at that level.

BACKGROUND

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

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

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

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

In September 2012, the City Council approved Resolution 2012-75, establishing a new Capital Asset Acquisition and Replacement Fund (CAARF), funded from the sale of the 11-acre site of the North Peninsula Jewish Campus and subsequent sale of the 15-acre site of the Foster Square project (Attachment 9). The CAARF may be used to fund the second category, major capital asset acquisition, construction and/or replacement, thus providing funding for the second category. In fact, the City Council provided direction in FY 2022-2023 to use $36 million from CAARF for the Recreation Center project.

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

Exclusion of Enterprise Fund Assets

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

ANALYSIS
Approach
Staff has updated the Long-Term CIP Funding analysis in light of current maintenance efforts, assessment of replacement requirements, and replacement costs in the following seven (7) categories:
•Streets – including pavement management efforts (e.g., arterial and collector street overlays) and sidewalks, curbs, and gutters
•Bridges – including bridges and approaches owned by the City, and only bridge approaches for overcrossings not owned by the City (i.e., E. Hillsdale Boulevard/Marina Lagoon overcrossing, Foster City Boulevard/92 Overpass, Vintage Park/92 Overpass)
•Lagoon and Storm Water Structures – including bulkheads, dredging, boat ramps, culverts, inlets, storm water pumps, and the pump station building •Levee – including the levee infrastructure
•Parks – Park infrastructure including hardscapes, landscaping, restrooms, lighting, irrigation systems, and permanent park structures such as tennis and basketball courts. It also includes the medians and cul-de-sacs maintained throughout the City
•Street Lights, Traffic Signal, and Crosswalk Systems – physical light and signal structures, controllers, and systems
•Buildings – including the Government Center campus, Recreation Center campus, and the Corporation Yard (structures associated with parks are included in Parks above)
15-Year CIP Capital Improvement Projects Program and Key Changes from the Prior Year (Attachment 4)
The Capital Improvement Plan has been updated to best reflect the recommended projects needed in the 15-year term. Some key changes include the addition of new projects not previously included in the plan, removal of projects that are not anticipated to require additional funding in future years, and cost updates based on the significant inflationary increases currently being observed in the construction market.

Detailed information, summaries and calculations and listings of the 15-year projects are found in Attachments 1 to 8 to this report.

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Assumptions
Funding Sources
In each category, initial assumptions were made as to the funding sources of various assets. Funding of asset components from other sources (e.g. developer fees) were excluded from the analysis. If an asset replacement value was considered so significant that the only effective financing option was to use debt financing (e.g., replacement of City Hall or the voter approved G.O. Bond funding of the Levee Improvement Project), those assets were also excluded. Assets excluded in each category (including the assumed alternate funding source in parentheses) were as follows:
•Streets – LED signal faces and signal controllers, pedestrian LED and appurtenances, backlit street signs (ERF), and traffic improvements as part of the Multi-Project Traffic Improvements Project (fully funded by developers of the respective projects)
•Bridges – None
•Lagoon – Lagoon itself, shorelines, rip-rap, and retaining walls (debt financing); pump stations, gates, trash racks and flappers (Equipment Replacement Fund) •Levee – Complete rebuild or raising of Levee infrastructure to address sea level rise (debt financing)
•Parks – Complete park rebuilds “from the ground up” (potential debt financing) •Buildings – Minor replacement projects (Building Maintenance Fund) Expenditure Assumptions
Replacement values were reviewed and updated from the prior year’s analysis as necessary. All values were expressed in terms of future replacement, taking into consideration factors such as inflation, project size, timing and construction contingency funding.

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

City Capital Projects Funding (Attachment 1)
•Park-In-Lieu and Park Facilities Infrastructure Fees – $2.80 million is designated from the Park-In-Lieu Fund Balance for the Boothbay Park improvements and the Recreation Center Rebuild. An additional $1.06 is designated for the Recreation Center Rebuild from Park Facilities Infrastructure Fees.
•Donations from Youth Sports Groups – $208,250 of donation reimbursements over the next five years from various sports groups for the Sea Cloud Park projects are included in the 15-year CIP plan.
•Grants – The Public Works and Parks Department routinely seek grants to supplement funding of its projects. Until grant funds are identified for various

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projects and are reasonably expected to be available, additional grant funds are excluded from this analysis. This year’s analysis includes $500,000 from Gilead for sustainability measures for the Recreation Center Rebuild project.

Streets-Related Funding (Attachment 2)
•Measure A – This is a sales tax-based allocation. A revenue projection of $936,400 is included in FY 2024-2025 with 5% annual growth thereafter. •Gas Tax Section 2103 Funding – Revised estimates are based on the Gas Tax Swap legislation approved by the State in 2010, which swapped Prop 42 funding into the Gas Tax funding stream. Gas Tax (Sections 2105-2107) revenues are used to fund Public Works street maintenance operations, but Section 2103 funds must be used for roadway improvements and other transportation initiatives. Revenues for FY 2024-2025 are estimated to be $299,200 based on forecasts from the State and projected to increase 2% annually thereafter.
•Measure M – This measure, passed by voters in San Mateo County in November 2010, implemented a $10 fee added to vehicle license registrations of County residents for 25 years starting April 2011. Staff is projecting to receive $121,700 in FY 2024-2025 and an additional 2% annually thereafter.

Funds are administered by C/CAG and are provided on a reimbursement- basis. These funds may be used for such things as pavement resurfacing, pothole repair, signs and striping, traffic signals, street sweeping, storm-inlet cleaning, and local shuttles.
•SB 1 (Road Maintenance and Rehabilitation Account) – In 2017, the State passed the Road Repair and Accountability Act providing funding for local streets, roads, and other transportation uses. The funding was through a 12- cent per gallon increase to the gasoline excise tax and an additional 20-cent per gallon increase to the diesel excise tax, both of which took effect on November 1, 2017. An additional vehicle registration tax called “Transportation Improvement Fee” with rates based on the value of motor vehicles took effect on January 1, 2018. FY 2024-2025 SB1 revenues to the City are estimated at $862,400 with projected annual growth of 5% thereafter. •Measure W – Measure W was passed by the voters of San Mateo County in November 2018. The measure took effect on July 2019 and is estimated to bring approximately $454,100 to Foster City in FY 2024-2024 with projected annual growth of 5% thereafter and can be used to support traffic and traffic congestion relief related initiatives.
•Transportation Impact Fees – Development fees related to transportation are programmed into the CIP in the years in which they are anticipated to be received. Estimated amounts and timing are provided by the Building Division. •Grants – Until such time grant funds are identified for various projects and are reasonably expected to be available, grant revenues are excluded from this analysis.
15-Year Cash Flow Methodology

4.2 4.2 Staff Report

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Foster City uses a funding methodology that looks at the total replacement value of assets which are scheduled to be replaced in the next 15-years, and then averages the replacement amount over the 15-year window. The funding amounts are then compared to the available fund balance reserves and anticipated future revenues.

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

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

City Capital Projects Funding
Public Works, in consultation with the Parks and Recreation Department, prepared the 15-year project list considering replacement value, timing, and necessity. As indicated in the attached analysis, City staff recommends $5.75 million of annual General Fund transfers to the City Capital Projects Fund through FY 2030-2031, followed by $3.50 million annually thereafter for the remaining eight (8) years of the 15-year forecast. This approach allows the City to maintain the minimum $2 million reserve and provide capacity for additional CIP projects.

CEQA
Not Applicable

FISCAL ANALYSIS
The CIP funding plan includes $5.75 million of annual transfers from the General Fund to the City CIP Fund for the preparation of the City’s Fiscal Year 2024-2025 budget and 5-year financial plan.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Sustainability
ATTACHMENTS:

Attachment 1 - 15-Year Fund Balance Analysis
Attachment 2 – Streets Related Funding
Attachment 3 - 15-Year CIP Costs

4.2 4.2 Staff Report

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Attachment 4 - 15-Year CIP Comparison
Attachment 5 - Summary of Funding Sources and City CIP Fund Balance Attachment 6 – Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Buildings, Storm Water and Lagoon Projects)
Attachment 7 - Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Parks Projects)
Attachment 8 - Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Street Projects)
Attachment 9 - City Resolution 2012-75

4.2 4.2 Staff Report

99 Long-Range CIP Planning Attachment 1 - 15 Year Fund Balance Analysis 15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 City Capital Investment Funding Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) Total 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Cash Flow Beginning Fund Balance (1) 12,852,735 14,174,931 9,849,181 6,593,431 4,062,681 6,778,931 5,172,931 2,252,331 5,428,331 3,408,531 5,331,531 9,192,331 12,092,331 14,344,331 17,844,331 12,852,735 Less: Capital Improvement Expenditures from 15-Year Forecast(13,564,804) (11,392,000) (9,550,000) (8,710,000) (5,725,000) (8,291,000) (8,920,600) (640,000) (6,294,800) (1,827,000) (679,200) (600,000) (2,218,000) (200,000) (90,000) (78,702,404) Add: Funding Available from Other Non-General Fund Sources Park in Lieu Fees (2) 745,000 - - - 2,050,000 - - - - - - - - - - 2,795,000 Reimbursements from Youth Sports Groups (3) 44,250 44,250 44,250 44,250 31,250 - - - - - - - - - - 208,250 Park Facilities Impact Fees (4) 594,000 467,000 - - - - - - - - - - - - - 1,061,000 Transportation Impact Fees (5) - 325,000 500,000 - - - - - - - - - - - - 825,000 Use of repurposed CIP Fund Balance for Recreation Center project5,407,250 - - - - - - - - - - - - - - 5,407,250 Gilead Foundation Grant for Recreation Center project 500,000 - - - - - - - - - - - - - - 500,000 Equipment Replacement Fund (6) - 480,000 - 385,000 110,000 435,000 - 290,000 425,000 200,000 360,000 - - - - 2,685,000 Building Maintenance Fund (7) 1,846,500 - - - 500,000 500,000 250,000 26,000 350,000 50,000 680,000 - 970,000 200,000 90,000 5,462,500 Add: Annual Long-Term CIP Funding from City General Fund (A)10,997,000 10,997,000 10,997,000 10,997,000 10,997,000 10,997,000 10,997,000 8,747,000 8,747,000 8,747,000 8,747,000 8,747,000 8,747,000 8,747,000 8,747,000 146,955,000 Increase (Decrease) to Annual Long-Term CIP Funding from City General Fund due to Excess / Deficiency of Reserves (B)(5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (5,247,000) (78,705,000) Ending Fund Balance 14,174,931 9,849,181 6,593,431 4,062,681 6,778,931 5,172,931 2,252,331 5,428,331 3,408,531 5,331,531 9,192,331 12,092,331 14,344,331 17,844,331 21,344,331 21,344,331 Less Minimum Fund Balance Requirement (8) 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement 12,174,931 7,849,181 4,593,431 2,062,681 4,778,931 3,172,931 252,331 3,428,331 1,408,531 3,331,531 7,192,331 10,092,331 12,344,331 15,844,331 19,344,331 19,344,331 Net Annual Long-Term CIP Funding from City General Fund (A) - (B) 5,750,000 5,750,000 5,750,000 5,750,000 5,750,000 5,750,000 5,750,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 68,250,000 This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved FOOTNOTES:
(1) - Beginning Fund Balance excludes the $5 million Levee project contingency and the $500,000 Gilead Foundation grant. In January 2024, the City Council provided direction to designate both the $5 million and $500,000 as additional funding resources for the Recreation Center project
(4) - Use of Park Facilities Impact Fees Fund Balance
(5) - Use of Transportation Impact Fees Fund Balance
(2) - Use of Park-In-Lieu Fund Balance
(3) - The Parks and Recreation Department anticipates payments over the next 5 years will be forthcoming from Youth Sports Groups for reimbursement of the Sea Cloud Synthetic Turf Fields (CIP 301-659).
(6) - Funding for various Parks projects include parks/playground equipment funded from the Equipment Replacement Internal Service Fund. (7) - Funding for Building Maintenance projects is from the Building Maintenance Internal Service Fund. In FY 18/19, the City Council approved a transfer of $2,716,614 of FY 2017- 2018 General Fund Rollover Surplus and $150,923 each from the Water and Wastewater Enterprise Fund Balances for their apportioned share of citywide building maintenance charges.
(8) - Per City Council Policy, the minimum fund balance in the City CIP fund is $2 million.

Q:\PubWorks\BUDGET\Budget 2024-2025\CIP\2024-03-25 Long Term CIP\General Fund Long-Term CIP\CIP 15yr forecast CITY Attachments 2024.03.09

4.2 Attachment 1 - 15-Year Fund Balance Analysis

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City of Foster City Attachment 2 - Streets Related Funding Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 Streets-Related Funding Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) Total 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Cash Flow Beginning Fund Balance (1) 3,952,005 3,375,805 2,900,605 3,072,305 4,326,805 5,720,705 7,560,605 9,553,605 11,706,905 14,028,405 16,526,205 19,208,805 22,085,205 25,164,605 14,028,405 3,952,005 Less: Capital Improvement Expenditures from 15-Year
Forecast (3,250,000) (3,595,000) (3,250,000) (1,800,000) (1,800,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000) (28,695,000) Add: Funding Available from Other Non-General Fund
Sources -
Measure A Revenues (2) 936,400 983,200 1,032,400 1,084,000 1,138,200 1,195,100 1,254,900 1,317,600 1,383,500 1,452,700 1,525,300 1,601,600 1,681,700 1,765,800 1,854,100 20,206,500 Gas Tax 2103 Revenues (3) 299,200 305,200 311,300 317,500 323,900 330,400 337,000 343,700 350,600 357,600 364,800 372,100 379,500 387,100 394,800 5,174,700 Measure M Revenues (4) 121,700 124,100 126,600 129,100 131,700 134,300 137,000 139,700 142,500 145,400 148,300 151,300 154,300 157,400 160,500 2,103,900 SB1 Road Maintenance and Rehabilitation Account
Revenues (5) 862,400 905,500 950,800 998,300 1,048,200 1,100,600 1,155,600 1,213,400 1,274,100 1,337,800 1,404,700 1,474,900 1,548,600 1,626,000 1,707,300 18,608,200 Measure W Revenues (6) 454,100 476,800 500,600 525,600 551,900 579,500 608,500 638,900 670,800 704,300 739,500 776,500 815,300 856,100 898,900 9,797,300 Transportation Impact Fees - 325,000 500,000 - - - - - - - - - - - - 825,000 Add: Annual Long-Term CIP Funding from Special
Revenue Funds (A) 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 1,913,000 28,695,000 Increase (Decrease) to Annual Long-Term CIP Funding from Special Revenue Funds due to Excess / Deficiency
of Reserves (B) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (1,913,000) (28,695,000) Ending Fund Balance 3,375,805 2,900,605 3,072,305 4,326,805 5,720,705 7,560,605 9,553,605 11,706,905 14,028,405 16,526,205 19,208,805 22,085,205 25,164,605 28,457,005 17,544,005 31,972,605 Less Minimum Fund Balance Requirement (7) - - - - - - - - - - - - - - - Excess Fund Balance Over Minimum Requirement3,375,805 2,900,605 3,072,305 4,326,805 5,720,705 7,560,605 9,553,605 11,706,905 14,028,405 16,526,205 19,208,805 22,085,205 25,164,605 28,457,005 17,544,005 31,972,605 Net Annual Long-Term CIP Funding from City
General Fund - - - - - - - - - - - - - - - This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved FOOTNOTES:
(1) - Beginning Fund Balance is comprised of the following based on the Mid-Year Financial Review:

Measure A 1,483,562
Gas Tax 296,653
Measure M 21,700
SB1 1,250,722
Measure W 899,368
Total 3,952,005
(2) - Measure A revenues are projected to reach $936,400 in FY 24/25 and increasing 5% annually thereafter (4) - Measure M revenues were the result of a transportation revenue measure passed by the voters of San Mateo County in November 2010. The measure is estimated to provide approximately $121,700 in funding to Foster City in FY 24/25 and can be used to support transportation related initiatives. A 2% annual growth factor is assumed for this revenue stream. (7) - There is no separate minimum fund balance reserve established by City Council policy regarding streets related projects. The City has a $2 million minimum Capital Investment Fund Balance reserve for emergency contingencies. (3) - Gas Tax - Section 2103 funds are related to the Gas Tax Swap approved by the State in 2010 which replace the Prop 42 monies dedicated to roadway improvements and other transportation projects. Based on the January 2023 State estimates, the City is projected to receive $299,200 in FY 24/25. Staff is estimating these revenues to grow by 2% annually. (5) - SB 1 Road Maintenance and Rehabilitation Account (RMRA) taxes and fees were enacted into law on April 28, 2017. Effective November 1, 2017, SB 1 receipts from the taxes and fees will be deposited into the RMRA. These funds will be apportioned annually to cites and counties by the State Controller's Office for road maintenance and rehabilitation. Estimated revenues for FY 24/25 are $862,400 and increasing 5% annually thereafter.(6) - Measure W revenues were the result of a transit and traffic congestion relief revenue measure passed by the voters of San Mateo County in November 2018. The measure took effect on July 2019 and is estimated to bring $454,100 to Foster City in FY 24/25. These monies can be used to support traffic and traffic congestion relief related initiatives. A 5% annual growth factors is assumed for this revenue stream.

4.2 Attachment 2 - Streets Related Funding

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City of Foster City Attachment 3 - 15 Year CIP Costs
Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039
Capital Project Cost Projections - 15-Year Forecast - All Projects Fund Balance Analysis - 15-Year Forecast (FYE 6/30)
Asset Category
Total Cash
Flow
Requirements 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Streets
Pavement Management and Park
Pathway Restoration 23,100,000 1,500,000 1,500,000 1,500,000 1,800,000 1,800,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Bicycle and Pedestrian
Improvements 325,000 - 75,000 250,000 - - - - - - - - - - - - Bridges 750,000 750,000 - - - - - - - - - - - - - Street Lights/Traffic
Signals/Crosswalk Systems 4,520,000 1,000,000 2,020,000 1,500,000 - - - - - - - - - - - - Subtotal - Street Projects and Eligible for Funding from
Transportation-related Revenue
Sources (2) 28,695,000 3,250,000 3,595,000 3,250,000 1,800,000 1,800,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Streets - Park Pathways (GF) 900,000 300,000 300,000 300,000 - - - - - - - - - - - - Street Lights/Traffic
Signals/Crosswalk Systems (GF) 3,000,000 - 2,000,000 1,000,000 - - - - - - - - - - - - Fire and Rescue Boat Ramp
Rehabilitation (GF) 280,000 - - 80,000 - 200,000 - - - - - - - - - - Traffic Signals (Equipment
Replacement ISF) 480,000 - 480,000 - - - - - - - - - - - - - Traffic Signals (Transportation Impact
Fees) 825,000 - 325,000 500,000 - - - - - - - - - - - - Recreation Center (Park In Lieu) 745,000 745,000 - - - - - - - - - - - - - - Recreation Center (Park Facilities
Impact Fees) 1,061,000 594,000 467,000 - - - - - - - - - - - - - Recreation Center (Gilead
Foundation Grant) 500,000 500,000 - - - - - - - - - - - - - - Recreation Center (BMF) 1,846,500 1,846,500 - - - - - - - - - - - - - - Recreation Center (CIP Fund
Balance) 5,407,250 5,407,250 - - - - - - - - - - - - - - Lagoons and Stormwater (GF) 20,500,000 500,000 7,000,000 5,000,000 - - - 8,000,000 - - - - - - - - Parks (GF) 33,964,600 2,550,000 820,000 2,470,000 7,825,000 2,865,000 7,606,000 894,600 - 5,819,800 947,000 319,200 600,000 1,248,000 - - Parks (Park In Lieu) 2,050,000 - - - - 2,050,000 - - - - - - - - - - Parks - Equipment (Equipment
Replacement ISF) 2,205,000 - - - 385,000 110,000 435,000 - 290,000 425,000 200,000 360,000 - - - - Buildings - City CIP Fund 1,322,054 1,122,054 - 200,000 - - - - - - - - - - - - Buildings (Building Maintenance ISF)3,616,000 - - - 500,000 500,000 250,000 26,000 350,000 50,000 680,000 - - 970,000 200,000 90,000 Subtotal - Projects Funded from
City Capital Improvement
Projects and other Funds (2) 78,702,404 13,564,804 11,392,000 9,550,000 8,710,000 5,725,000 8,291,000 8,920,600 640,000 6,294,800 1,827,000 679,200 600,000 2,218,000 200,000 90,000 Totals 107,397,404 16,814,804 14,987,000 12,800,000 10,510,000 7,525,000 9,791,000 10,420,600 2,140,000 7,794,800 3,327,000 2,179,200 2,100,000 3,718,000 1,700,000 1,590,000 Rounded
Average 15 Year Funding 7,159,827 7,160,000
- Streets Funded Portion1,913,000 1,913,000 (To Attachment B)- City Capital Investment and non- Streets Funded Portion5,246,827 5,247,000 (To Attachment A) FOOTNOTES:
(1) - This analysis identifies the total annual estimated project costs for funding asset construction and/or replacement over a 15-year forecast. (2) - The cash flow requirements for each year are carried forward to the Fund Balance Analysis in Attachments 2 and 1, respectively.

4.2 Attachment 3 - 15-Year CIP Costs

102

ATTACHMENT 4 - 15-YEAR CIP COMPARISON
15-Year CIP Comparison
Fifteen Year
Period
FY 23/24 - 37/38
Fifteen Year
Period
FY 24/25 - 38/39
Increase
(Decrease) Notes
Asset Category
Streets/pathways 24,305,000 24,605,000 300,000 1.2% 1 Bridges 850,000 750,000 (100,000) -11.8% 2 Traffic System 8,925,000 8,825,000 (100,000) -1.1% 3 Lagoon Structures 21,500,000 20,500,000 (1,000,000) -4.7% 4 Parks (including Park Equipment) 39,289,600 47,779,350 8,489,750 21.6% 5 Buildings (including Building
Equipment) 3,856,000 4,938,054 1,082,054 28.1% 6 98,725,600 107,397,404 8,671,804 8.8% Detailed Analysis:

Note 1 (Streets)
Fifteen Year Period
FY 23/24 - 37/38
Fifteen
Year Period
FY 24/25 -
38/39
Increase
(Decrease)
Updated Based on Projected Pricing 300,000
STREET REHABILITATION 1,500,000 1,800,000 Note 2 (Bridges)
Updated Based on Projected Pricing (100,000)
(CIP 301-715) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS 850,000 750,000 Note 3 (Traffic System Improvements)
Partial funding appropriated in 2023-2024 (100,000)
(CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES 8,925,000 8,825,000 Updated Project Cost Based on Projected Pricing
LAGOON DREDGING 8,800,000 8,000,000
-
Note 5 (Parks)
Additional Funding Required/Project Added: 8,489,750
RECREATION CENTER REBUILD (2017-2018) - 9,559,750 CITY HALL EXTERIOR REHABILITATION (FY 2024-2025) - 200,000 Projects removed
LIGHT INSTALLATION AT BOOTHBAY PARK 250,000 - EAST HILLSDALE AND FOSTER CITY BOULEVARDS MEDIAN REFURBISHMENT 500,000 - INSTALL NEW AMPHITHEATER SHADE STRUCTURE 1,000,000 - Updated Project Cost Based on Projected Pricing
(CIP 301-712) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING 900,000 350,000 SEA CLOUD MAINTENANCE SHED 2,300,000 2,000,000
CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING 1,248,000 1,800,000 PORT ROYAL SYNTHETIC RESURFACING 647,000 925,000
SEA CLOUD PARK S1, S2, B1 SYNTHETIC RESURFACING 800,000 1,300,000 Note 6 (Buildings)
No Additional Funding Required/Projects Removed: 1,082,054 POLICE STATION KITCHEN REMODEL 130,000 - Additional Funding Required/Projects Added:
(CIP 301-700) FUEL SYSTEMS IMPROVEMENTS - 922,054 (CIP 301-708) RENOVATE ELEVATORS IN CITY BUILDINGS - 200,000 REPLACE POLICE STATION HVAC - 90,000 8,671,804

4.2 Attachment 4 - 15-Year CIP Comparison

103

Attachment 5 - Suumary of Funding Sources and City CIP Fund Balance Summary of Funding Sources and City CIP Fund Balance
Total 15-year CIP Projects, FY 2024-25 to FY 3038-39 107,397,404 Funding Sources:

Streets related funding sources 28,695,000
Park In-Lieu Fund 2,795,000
Transporation Impact Fees 825,000
Park Facilities Impact Fees 1,061,000
Gilead Foundation Grant (City CIP Fund) 500,000
Release of Levee Project Contingency to Recreation Center Project 5,000,000 Equipment Replacement Fund 2,685,000
Building Replacement Fund 5,462,500 47,023,500
Balance to be funded by the General Fund 60,373,904
Projected Beginning City CIP Fund Balance, 7/1/2024 12,852,735 Transfers In from General Fund 68,250,000
Reimbursements from Sports Groups 208,250
Projects to be funded by the General Fund (60,373,904)
20,937,081
Projected Ending City CIP Fund Balance (inclusive of a $2M reserves), 6/30/2039

4.2 Attachment 5 - Summary of Funding Sources and City CIP Fund Balance

104

ATTACHMENT 6 - BUILDINGS AND LAGOONS
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22

A B C D E F G H I J K L M N O P Q R S T
Category NO. Project Name Funding
Source
TOTAL - Not
Including Prior
Years
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

BUILDING PROJECTS
C BD-01 (CIP 301-677) LIBRARY EXTERIOR IMPROVEMENTS AND RE-LANDSCAPING (2017-2018)CC 200,000 200,000 A BD-02 (CIP 301-700) FUEL SYSTEMS IMPROVEMENTS (2021-2022) CC 922,054 922,054 B BD-03 (CIP 301-708) RENOVATE ELEVATORS IN CITY BUILDINGS (2022-2023) CC 200,000 200,000 B BD-04 (NEW CIP) REPLACE CITY HALL AND FIRE STATION ROOF (2027-2028) BMF 500,000 500,000 B BD-05 (NEW CIP) REPLACE COUNCIL CHAMBERS HVAC (2028-2029) BMF500,000 500,000 (NEW CIP) REPLACE TEEN CENTER HVAC BMF250,000 250,000 (NEW CIP) REPLACE SENIOR WING HVAC BMF 26,000 26,000 (NEW CIP) REPLACE LIBRARY/COMMUNITY CENTER ROOF BMF350,000 350,000 (NEW CIP) REPLACE COUNCIL CHAMBERS TOP ROOF BMF50,000 50,000 (NEW CIP) REPLACE CORPORATION YARD HVAC BMF380,000 380,000 (NEW CIP) REPLACE TEEN CENTER ROOF BMF300,000 300,000 (NEW CIP) REPLACE CITY HALL VARIABLE AIR VALVES (HVAC) BMF200,000 200,000 (NEW CIP) REPLACE COMMUNITY CENTER/LIBRARY HVAC BMF350,000 350,000 (NEW CIP) REPLACE CORPORATION YARD ADMINISTRATION ROOF BMF120,000 120,000 (NEW CIP) REPLACE POLICE STATION ROOF BMF300,000 300,000 (NEW CIP) REPLACE COUNCIL CHAMBERS ZINC ROOF BMF200,000 200,000 (NEW CIP) REPLACE POLICE STATION HVAC BMF90,000 90,000 4,938,054 1,122,054 - 200,000 500,000 500,000 250,000 26,000 350,000 50,000 680,000 - - 970,000 200,000 90,000 Q:\PubWorks\BUDGET\Budget 2024-2025\CIP\2024-03-25 Long Term CIP\General Fund Long-Term CIP\CIP 15yr forecast CITY Attachments 2024.03.09 1

4.2 Attachment 6 - Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Buildings, Storm Water and Lagoon Projects)

105

ATTACHMENT 7 - PARKS
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4 5
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8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
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60 A B C D E F G H I J K L M N O P Q R S T
Category NO. Project Name Funding
Source
TOTAL - Not
Including Prior
Years
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

PARKS PROJECTS
A PK-01 (CIP 301-678) RECREATION CENTER REBUILD (2017-2018) PT 9,559,750 9,092,750 467,000 PK-01 Funding Source #1 - City CIP Fund CC 324,250 324,250 PK-01 Funding Source #2 - City CIP Fund (from Gilead Grant) CC 500,000 500,000 PK-01 Funding Source #3 - City CIP Fund (from CIP 657 Levee Project) CC 5,000,000 5,000,000 PK-02 Funding Source #4 -(from CIP 655 Bocce Courts Project) PIL 745,000 745,000 PK-02 Funding Source #5 -(from CIP 655 Bocce Courts Project) CC 83,000 83,000 PK-01 Funding Source #6 - Park Facility Impact Fees PIF 1,061,000 594,000 467,000 PK-01 Funding Source #7 - Building Maintenance Fund BMF 1,846,500 1,846,500 B PK-02 (CIP 301-712) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING (2023- 2024) CC 350,000 350,000
B PK-03 (CIP 301-714) SEA CLOUD MAINTENANCE SHED (2023-2024) CC 2,000,000 2,000,000 C PK-04 (NEW CIP) CITY HALL EXTERIOR REHABILITATION (FY 2024-2025) CC 200,000 200,000 B PK-05 (NEW CIP) DOG PARK INFRASTRUCTURE UPGRADE AND SYNTHETIC TURF REPLACEMENT (2025- 2026) CC 500,000 500,000
C PK-06 (NEW CIP) TENNIS AND BASKETBALL COURTS RESURFACING (2025-2026) CC 320,000 320,000 B PK-07 (NEW CIP) CATAMARAN PARK IMPROVEMENTS (2026-2027) CC 550,000 550,000 B PK-08 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING (2026-2027) CC 1,800,000 1,800,000 C PK-09 (NEW CIP) AMPHITHEATER SYNTHETIC TURF RESURFACING (2026-2027) CC 120,000 120,000 B PK-10 (NEW CIP) GULL PARK RENOVATION (2027-2028) PT 3,810,000 3,810,000 PK-10 Funding Source #1 - City CIP Fund CC 3,550,000 3,550,000 PK-10 Funding Source #2 - Equipment Replacement Fund ERF 260,000 260,000 B PK-11 (NEW CIP) MARLIN PARK RENOVATION (2027-2028) PT 3,900,000 3,900,000 PK-11 Funding Source #1 - City CIP Fund CC 3,775,000 3,775,000 PK-11 Funding Source #2 - Equipment Replacement Fund ERF 125,000 125,000 B PK-12 (NEW CIP) BOOTHBAY PARK SITE IMPROVEMENTS (2027-2028) PT 4,000,000 500,000 3,500,000 PK-12 Funding Source #1 - City CIP Fund CC 1,840,000 500,000 1,340,000 PK-12 Funding Source #2 - Equipment Replacement Fund ERF 110,000 110,000 PK-12 Funding Source #3 - Parks-in-Lieu Fund PIL 2,050,000 2,050,000 B PK-13 (NEW CIP) PARKING LOT RESURFACING (2028-2029) CC 600,000 600,000 B PK-14 (NEW CIP) PORT ROYAL SYNTHETIC RESURFACING (2028-2029) CC 925,000 925,000 (NEW CIP) SEA CLOUD PARK S1, S2, B1 SYNTHETIC RESURFACING CC1,300,000 1,300,000 (NEW CIP) TURNSTONE PARK RENOVATION PT1,722,000 1,722,000 PK-XX Funding Source #1 - City CIP Fund CC 1,622,000 1,622,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 100,000 100,000 (NEW CIP) SUNFISH PARK RENOVATION PT 2,708,000 2,708,000 PK-XX Funding Source #1 - City CIP Fund CC 2,508,000 2,508,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 200,000 200,000 (NEW CIP) SHAD PARK RENOVATION PT 2,311,000 2,311,000 PK-XX Funding Source #1 - City CIP Fund CC 2,176,000 2,176,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 135,000 135,000 (NEW CIP) GATESHEAD PARK RENOVATION CC 894,600 894,600 (NEW CIP) REPLACE CATAMARAN PLAYGROUND ERF150,000 150,000 (NEW CIP) REPLACE KETCH PLAYGROUND ERF140,000 140,000 (NEW CIP) SEA CLOUD PARK S4 SYNTHETIC RESURFACING CC1,294,000 1,294,000 (NEW CIP) RESURFACING: TENNIS (EDGEWATER, CATAMARAN); BASKETBALL (CATAMARAN, VIBE, EDGEWATER)CC 304,800 304,800
(NEW CIP) REPLACE PORT ROYAL PLAYGROUND ERF125,000 125,000 (NEW CIP) REPLACE SEA CLOUD PLAYGROUND ERF200,000 200,000 (NEW CIP) ERCKENBRACK PARK RENOVATION PT4,321,000 4,321,000 PK-XX Funding Source #1 - City CIP Fund CC 4,221,000 4,221,000 PK-XX Funding Source #2 - Equipment Replacement Fund ERF 100,000 100,000 (NEW CIP) EDGEWATER PARK SOFTBALL AND SOCCER SYNTHETIC RESURFACING CC647,000 647,000 (NEW CIP) REPLACE SHOREBIRD PARK FITNESS COURT ERF200,000 200,000 (NEW CIP) DOG PARK SYNTHETIC RESURFACING CC300,000 300,000 (NEW CIP) RESURFACING: TENNIS (EDGEWATER, CATAMARAN); BASKETBALL (CATAMARAN, VIBE, EDGEWATER)CC 319,200 319,200
(NEW CIP) REPLACE KILLDEER PARK PLAYGROUND ERF180,000 180,000 (NEW CIP) REPLACE FARRAGUT PLAYGROUND ERF180,000 180,000 (NEW CIP) PARKING LOT RESURFACING (Civic Center, South Drive; Police Station; Port Royal; Boat Park; Library/Community Center; Rec. Ctr. & South Parkinglot; Senior Center; Boothbay; Sea Cloud)CC 600,000 600,000 (NEW CIP) CATAMARAN AND SEA CLOUD S3 SYTHETIC RESURFACING CC1,248,000 1,248,000 47,779,350 11,642,750 1,287,000 2,470,000 8,210,000 5,025,000 8,041,000 894,600 290,000 6,244,800 1,147,000 679,200 600,000 1,248,000 - - Q:\PubWorks\BUDGET\Budget 2024-2025\CIP\2024-03-25 Long Term CIP\General Fund Long-Term CIP\CIP 15yr forecast CITY Attachments 2024.03.09 1

4.2 Attachment 7 - Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Parks Projects)

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ATTACHMENT 8 - STREETS
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 A B C D E F G H I J K L M N O P Q R S T
Category NO. Project Name Funding Source
TOTAL - Not
Including Prior
Years
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

STREET / TRAFFIC SIGNAL PROJECTS
A ST-01 (CIP 301-698) TRAFFIC SIGNAL SYSTEM UPGRADES (2020-2021) PT 8,825,000 1,000,000 4,825,000 3,000,000 ST-01 Funding Souce #1 - SB1 SB1 2,220,000 1,520,000 700,000 ST-01 Funding Souce #2 - Measure W MW 2,300,000 1,000,000 500,000 800,000 ST-01 Funding Source #3 - Equipment Replacement Fund ERF 480,000 - 480,000 - ST-01 Funding Souce #4 - Transportation Impact Fees TIF 825,000 - 325,000 500,000 ST-01 Funding Souce #5 - City CIP CC 3,000,000 - 2,000,000 1,000,000 B ST-02 (CIP 301-715) SUBSTRUCTURE AND SUPERSTRUCTURE BRIDGE IMPROVEMENTS (2023-2024) SB1750,000 750,000 A ST-03 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2024-2025) PT1,800,000 1,800,000 ST-03 Funding Souce #1 - Measure A MA 1,000,000 1,000,000 ST-03 Funding Souce #2 - Gas Tax GT 500,000 500,000 ST-03 Funding Souce #3 - Meassure M MM - - ST-03 Funding Souce #4 - SB1 SB1 - - ST-03 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 C ST-04 (NEW CIP) BICYCLE AND PEDESTRIAN IMPROVEMENTS PROJECT (2025-2026) MM 325,000 75,000 250,000 A ST-05 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2025-2026) PT1,800,000 - 1,800,000 - - ST-05 Funding Souce #1 - Measure A MA 1,500,000 1,500,000 ST-05 Funding Souce #2 - Gas Tax GT - - ST-05 Funding Souce #3 - Meassure M MM - - ST-05 Funding Souce #4 - SB1 SB1 - - ST-05 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 B ST-06 (NEW CIP) FIRE AND RESCUE BOAT RAMP REHABILITATION (2025-2026) CC 280,000 80,000 200,000 A ST-07 (NEW CIP) STREET REHABILITATION AND PARK PATHWAY RESTORATION (2026-2027) PT1,800,000 - - 1,800,000 ST-07 Funding Souce #1 - Measure A MA 1,000,000 1,000,000 ST-07 Funding Souce #2 - Gas Tax GT -
ST-07 Funding Souce #3 - Meassure M MM - - ST-07 Funding Souce #4 - SB1 SB1 500,000 500,000 ST-07 Funding Source #5 - City CIP (Park Pathways) CC 300,000 300,000 A ST-08 (NEW CIP) STREET REHABILITATION (2027-2028) PT 1,800,000 1,800,000 ST-08 Funding Souce #1 - Measure A MA 900,000 900,000 ST-08 Funding Souce #2 - Gas Tax GT -
ST-08 Funding Souce #3 - Meassure M MM -
ST-08 Funding Souce #4 - SB1 SB1 900,000 900,000 ST-08 Funding Source #5 - City CIP (Park Pathways) CC - - A ST-09 (NEW CIP) STREET REHABILITATION (2028-2029) PT 1,800,000 1,800,000 ST-09 Funding Souce #1 - Measure A MA 900,000 900,000 ST-09 Funding Souce #2 - Gas Tax GT -
ST-09 Funding Souce #3 - Meassure M MM -
ST-09 Funding Souce #4 - SB1 SB1 900,000 900,000 ST-09 Funding Source #5 - City CIP (Park Pathways) CC - - (NEW CIP) STREET REHABILITATION (long term) PT 15,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 ST-XXX Funding Souce #1 - Measure A MA 7,000,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 ST-XXX Funding Souce #2 - Gas Tax GT 3,250,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 325,000 ST-XXX Funding Souce #3 - Meassure M MM 1,000,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 ST-XXX Funding Souce #4 - SB1 SB1 3,750,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 ST-XXX Funding Source #5 - City CIP (Park Pathways) CC - - - - - - - - - - 34,180,000 3,550,000 6,700,000 5,130,000 1,800,000 2,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Category NO. Project Name Funding Source TOTAL 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

STORMWATER / LAGOON PROJECTS
A SW-01 (CIP 301-717) ADD THIRD AND FOURTH LAGOON PUMP AND RELATED INFRASTRUCTURE (2023- 2024) CC 2,000,000 2,000,000
A SW-02 (CIP 301-718) LAGOON PUMP STATION BUILDING REHABILITATION (2023-2024) CC9,720,000 470,000 4,950,000 4,300,000 A SW-03 (NEW CIP) LAGOON INTAKE STRUCTURE REHABILITATION (2024-2025) CC 780,000 30,000 50,000 700,000 (NEW CIP) LAGOON DREDGING (2027-2028)CC 8,000,000 8,000,000 20,500,000 500,000 7,000,000 5,000,000 - - - 8,000,000 - - - - - - - - Q:\PubWorks\BUDGET\Budget 2024-2025\CIP\2024-03-25 Long Term CIP\General Fund Long-Term CIP\CIP 15yr forecast CITY Attachments 2024.03.09 1

4.2 Attachment 8 - Capital Improvement Program Fiscal Year 2024-25 through Fiscal Year 2038-39 (Streets Projects)

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RESOLUTION NO. 2012-75

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

ESTABLISHING A CAPITAL ASSET ACQUISITION AND REPLACEMENT FUND IN THE

CAPITAL PROJECTS FUND GROUP AS A COMMITTED FUND BALANCE AND

ESTABLISHING POLICIES CONCERNING SOURCES, USES AND TRANSFER OF FUNDS

CITY OF FOSTER CITY
WHEREAS, the City Council wishes to establish a committed fund balance in accordance with the City's Fund Balance Policy enacted on June 20, 2011 for the purposes of providing a source of revenue to be utilized for the acquisition of real property or the acquisition, construction or replacement of major capital assets; and, WHEREAS, this fund should be called the Capital Asset Acquisition and Replacement Fund and should be accounted for in the City's Capital Projects Fund Group; and,
WHEREAS, the source of revenues to be deposited into this fund should be derived from the sale of real property; and,
WHEREAS, the uses of funds should be used only for the acquisition of real property or for the acquisition, construction or replacement of capital assets and subject to a supermajority vote of the City Council; and,
WHEREAS, the uses of funds are not intended to be used for maintenance or preservation of existing assets; and,
WHEREAS, the City Council wishes to transfer monies from the proceeds of the North Peninsula Jewish Campus site in the sum of Two Hundred Five Thousand Dollars ($205,000) per year for three successive years only in Fiscal Years 2012-2013, 2013-2014, and 2014-2015; and,
WHEREAS, the City Council wishes to require a supermajority vote in order to enact, amend or rescind any or all parts of this resolution; and, WHEREAS, this resolution shall only go into effect subject to a 415 th vote of the City Council.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the Capital Asset Acquisition and Replacement Fund is hereby created subject to the following provisions:
• Adoption — the Capital Asset Acquisition and Replacement Fund is established in the City's Capital Projects Fund Group to serve as a Committed

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City Resolution No. 2012-75
Fund Balance account in accordance with the City's Fund Balance Policy enacted on June 20, 2011.
• Purpose - the purpose of this fund is to provide a source of revenue to be utilized for the acquisition of real property or the acquisition, construction or replacement of major capital assets.
• Source of Funds — monies deposited into the fund shall be derived from any of the following three sources: 'I) proceeds realized as a result of the sale of real property; 2) principal and interest payments on loans associated with the sale of real property; or, 3) investment earnings on pooled cash and/or investments in the fund.
• Use of Funds — subject to a 4/5 th affirmative vote of the City Council, funds may be allocated for the following two purposes: 1) acquisition of real property; and/or, 2) major capital asset acquisition, construction and/or replacement.
• Transfer of Funds — an annual transfer shall be made from the proceeds generated from the sale of the North Peninsula Jewish Campus (NPJC) site from the Capital Asset Acquisition and Replacement Fund to the City General Fund in the amount of $205,000 for three (3) successive fiscal years only in FY 2012-2013, FY 2013-2014, and FY 2014-2015.
• Enactment, Amendment or Rescission — the enacting resolution, and any future amendments or rescission to this resolution, shall require a 4/5th vote of the City Council.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Special Meeting held on the 24th day of September, 2012, by the following vote:

AYES: Councilmembers Bronitsky, Frisella, Okamoto, Perez and Mayor Kiesel NOES: None
ABSENT: None
ABSTAIN: None

ART KIESEL, MAYOR
ATTEST:

DORIS L. PALMER, CITY CLERK

4.2 Attachment 9 - City Resolution 2012-75

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DATE: March 25, 2024

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: Andrew Brozyna, Public Works Director/City Engineer Edmund Suen, Finance Director
DEPARTMENT: Public Works
Finance
SUBJECT: FIFTEEN YEAR WATER AND WASTEWATER FUNDS CAPITAL

IMPROVEMENT PROJECTS PROGRAM AND FUNDING PLAN
FOR THE PREPARATION OF THE DISTRICT’S FISCAL YEAR
2024-2025 BUDGET AND FIVE-YEAR FINANCIAL PLAN

RECOMMENDATION
It is recommended that the EMID Board of Directors receive and accept the District’s 15-year Water and Wastewater Funds Capital Improvement Projects Program and its funding plan for the preparation of the District’s Fiscal Year 2024-2025 budget and 5- year financial plan.

EXECUTIVE SUMMARY
In 2010, the EMID Board approved a funding strategy for its Water and Wastewater Capital Improvement Projects (CIP) in the form of a Long-Term CIP Funding program.

The current model uses a 15-year capital expenditure forecast and funds those forecasted needs on an annual basis. The District also generally refrains from using debt to finance its capital projects unless it is necessary because of the magnitude of the project (e.g., the Wastewater Treatment Plant (WWTP) project).

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The Capital Improvement Reserve balances, inclusive of the minimum $2 million emergency reserves in both the Water Fund and Wastewater Fund, are projected to be $5.64 million and $8.78 million respectively on June 30, 2024.

Based on the 15-year Water CIP assessment, City staff identified an annual funding need of $1 million. In the Wastewater Enterprise, staff has identified $56.19 million of CIP projects (of which $10.10 million are for the WWTP project that is cash funded) over the next two years through FY 2025-26. As a result, annual funding of $7.60 million is needed for 2 years before leveling to $3.1 million annually for the remaining 13 years of the 15- year CIP Plan. These funding levels have been incorporated into the rate recommendations which are detailed in separate reports on this agenda.

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

In the District’s early years, capital improvement efforts were primarily focused on the construction of new infrastructure. Now that the District is built-out, there has been a transition from new construction to infrastructure maintenance and replacement (e.g. the WWTP project). This affects how the District characterizes and funds future CIP programs.

Maintenance vs. CIP
Managing the District’s infrastructure manifests itself in the following ways:
•Proactive Maintenance Activities – The preventative maintenance efforts of the District’s Maintenance crews on an ongoing basis reduce the overall future costs of District infrastructure. These ongoing operating costs offset the magnitude and expense of future infrastructure replacement projects.
•Recurring Capital Improvement Projects (CIP) – Some CIPs are considered “recurring” and amount to significant repair work, such as pipe repairs, water valve replacements, and water tank lining and coating projects. The underlying infrastructure is still usable, but these larger maintenance efforts help to extend the useful lives of the underlying infrastructure.
•Infrastructure Replacement/Construction Projects – Other CIPs are considered so significant in nature that the entire infrastructure is replaced or built anew.

Examples include the Lift Station rehabilitation projects and the WWTP project.

The District has historically considered the latter two categories (Recurring CIPs and Infrastructure Replacement/Construction) as Capital Improvement Projects, and has funded these projects out of specifically designated CIP funds within each respective Enterprise fund. The District has also incorporated long-term CIP projects in its rate

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models so that the burden of such projects can be planned for and incorporated into the rate structure to mitigate the impact on customers over a longer period.

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

Water System
•Fire Hydrants – these important safety amenities are included in the water operations
•Water Infrastructure – this includes pipes, valves, seismic retrofits, water tank improvements (not replacement), and other elements of the delivery of water from the point of the District’s water structures to delivery at customers’ properties •Water Structures – this includes the four (4) water tanks and the booster pump station located at the Corporation Yard
Wastewater System
•Pipelines – the primary means of collecting wastewater from customers and transporting it to the Wastewater Treatment Plant in San Mateo •Valves – which serve as critical junction and shutoff points within the system •Lift Stations – since Foster City is relatively flat, Lift Stations and their accompanying generators assist wastewater to flow through the system to the wastewater treatment plant where gravity would otherwise serve this purpose •Parallel Force Mains – critical elements at key points that connect the wastewater system
Next, District staff considered the level of maintenance and serviceability of capital assets in order to determine the appropriate estimated useful lives of each asset. District staff also considered the relative costs associated with such maintenance to evaluate the cost- effectiveness of such maintenance efforts.
15-Year CIP and Key Changes from the Prior Year (Attachments 2 and 4 for Water and Wastewater respectively)
The Capital Improvement Plan has been updated to best reflect the recommended projects needed in the 15-year term. Some key changes include the addition of five (5) new water projects and 2 new wastewater projects not previously included in the plan, as well as the removal of projects that are currently funded and not anticipated to require additional funding in future years. Some projects reflect an expanded scope of work and some were updated based on the significant inflationary increases currently being observed in the construction market. Specific and detailed information about the

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

Assumptions
Funding Sources
In each category of capital projects, initial assumptions were made as to the funding sources of the various assets (typically enterprise operating fund transfers to the enterprise CIP Fund, equipment replacement fund, and/or connection fees). If an asset’s replacement value was considered so significant that the only effective funding option was to use debt financing (in the form of bonds, federal and state programs, bank loans, etc.) those assets were excluded. The asset categories and their typical funding sources for the Water and Wastewater enterprise are as follows:

Water System
•Fire Hydrants – hydrants do not typically call for replacement; operating funds are used to replace hydrants which are damaged or require repair •Valves – CIP funding is needed to replace, rehabilitate or repair various infrastructure elements such as pipes, valves, and other elements mentioned above when necessary; system wide replacement of each element type is not anticipated short of a catastrophic event
•Water Structures – water tanks have very long lives; lining in the three steel tanks requires CIP funding approximately every 15 years
•Water Meters – funding for meters that are replaced as part of CIPs is included in the analysis. Some water meter replacements that are in the Equipment Replacement Fund or replaced during maintenance operations are not considered as part of this analysis
Wastewater System
•Pipes – CIP funding for pipes requiring rehabilitation or repair; system-wide replacement of pipes is not anticipated short of a catastrophic event •Valves – valve replacement costs are included in CIP plans. •Lift Stations – lift station rehabilitation projects require CIP funding; generators, their transfer switches, and portable generators that are funded through Equipment Replacement funds and are not considered as part of this analysis •Parallel Force Mains – force main replacement requires CIP funding •Wastewater Treatment System (WWTP) – rehabilitation that San Mateo is undertaking under its 10-year integrated Wastewater Master Plan (Clean Water Program) for which the District will be responsible for its proportionate share of costs of approximately $157.3 million. Much of its costs are funded through debt financing with surplus working capital providing the balance of funding.

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Expenditure Assumptions
Replacement values were reviewed and updated from the prior year’s analysis as necessary. All values were expressed in terms of future replacement, taking into consideration factors such as inflation, project size, timing and construction contingency funding.

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

Based upon staff’s review of the components of the 15-Year CIP funding needs, the scenario generates an annual CIP amount averaging $1.21 million for Water CIP projects, and $3.75 million for Wastewater CIP projects.

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

In the attached analysis, the Water Capital Improvement Plan’s annual funding requirement is $1 million over the 15 year CIP plan (Attachment 1). The proposed annual funding for the Wastewater program is scaled because of the high value of projects, predominantly $10.10 million of WWTP costs in the first two years of the 15-year CIP Plan. As a result, the annual funding for these two years is $7.60 million before leveling down to $3.10 million for the following 13 years (Attachment 3). Effective FY 2024-2025, the remaining costs to complete the District’s share of the WWTP project will be entirely cash funded as the District is expected to have accumulated adequate working capital for the completion of this project.

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Conclusion
Staff seeks EMID Board comments on District’s 15-year capital improvement projects as well as direction to implement the funding plan that includes $1 million of annual transfers from the Water Operating Fund to the Water CIP Fund and $7.60 million of annual transfers from the Wastewater Operating Fund to the Wastewater CIP Fund for FY 2024-2025 and FY 2025-2026 followed by $3.1 million of annual transfers for the next 13 fiscal years for the preparation of the Enterprise Funds’ Fiscal Year 2024-2025 budget and 5-year financial plan.

CEQA
Not Applicable

FISCAL IMPACT
If approved, the FY 2024-2025 Preliminary Enterprise Budget and Five-Year Financial Plan will be prepared to include $1 million of annual transfers from the Water Operating Fund to the Water CIP Fund over the next five (5) years and $7.60 million of annual transfers from the Wastewater Operating Fund to the Wastewater CIP Fund for FY 2024- 2025 and FY 2025-2026 followed by $3.1 million of annual transfers for the following 3 years, which will also be used to calculate water and wastewater rates for FY 2024-2025.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Sustainability

ATTACHMENTS
Attachment 1 – Water Enterprise CIP Funding Strategy
Attachment 2 – Water Enterprise 15-Year CIP Costs
Attachment 3 – Wastewater Enterprise CIP Funding Strategy Attachment 4 – Wastewater Enterprise 15-Year CIP Costs
Attachment 5 – Water and Wastewater 15-Year CIP Comparison Attachment 6 – Capital Improvement Program Fiscal Year 2024-2025 through Fiscal Year 2038-2039

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Estero Municipal Improvement District Attachment 1 - Water Enterprise CIP Funding Strategy Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 Water Enterprise Fund Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) 15 year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Total Beginning Fund Balance 5,636,457 6,636,457 7,186,457 5,986,457 5,486,457 5,048,457 5,048,457 5,048,457 6,048,457 5,298,457 5,548,457 5,798,457 6,048,457 5,298,457 5,548,457 5,636,457 Less: Capital Improvement Expenditures - (550,000) (2,700,000) (1,500,000) (1,438,000) (1,000,000) (1,000,000) - (1,750,000) (750,000) (750,000) (750,000) (1,750,000) (750,000) (3,500,000) (18,188,000) Add: Other Funding Sources
Water Connection Fees - 100,000 500,000 - - - - - - - - - - - - 600,000 Add: Annual Long-Term CIP Funding from Operations (1) 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 2,213,000 33,195,000 (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (1,213,000) (18,195,000) Ending Fund Balance 6,636,457 7,186,457 5,986,457 5,486,457 5,048,457 5,048,457 5,048,457 6,048,457 5,298,457 5,548,457 5,798,457 6,048,457 5,298,457 5,548,457 3,048,457 3,048,457 Less Minimum Fund Balance Requirement 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement4,636,457 5,186,457 3,986,457 3,486,457 3,048,457 3,048,457 3,048,457 4,048,457 3,298,457 3,548,457 3,798,457 4,048,457 3,298,457 3,548,457 1,048,457 1,048,457 Net Annual Long-Term CIP Funding from Operations (1) - (2)1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 15,000,000 NOTE:

This analysis projects fund balance levels over the 15-year period to determine:
(A) - That there are sufficient funds to meet cash flow requirements in future years (B) - The extent to which excess cash is being reserved Increase (Decrease) to Annual Long-Term CIP Funding due to Excess / Deficiency of Reserves (2)

4.3 Attachment 1 - Water Enterprise CIP Funding Strategy

116

Estero Municipal Improvement District Attachment 2 - Water Enterprise 15-Year CIP Costs Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 Water Enterprise Fund Funding Strategy
15-Year Capital Expenditure Requirements
Capital Expenditure Requirements - 15-Year Forecast (FYE 6/30) Asset Category
Total Cash
Flow
Requirements2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Fire Hydrants (1) - - - - - - - - - - - - - - - - Water Tank Inspection and Recoating3,500,000 - - - - - - - - - - - - - - 3,500,000 Water Main Condition Assessment 250,000 - 250,000 - - - - - - - - - - - - - Two Engines and Pump Replacement
at Water Booster Pump Station 975,000 - - - 375,000 600,000 - - - - - - - - - Water Facilities Seismic Vulnerability
Assessment 125,000 - - - 125,000 - - - - - - - - - - Other Water Infrastructure
Improvements (water transmission and
distribution systems) - - - - - - - - - - - - - - - - Large Water Valve Replacement 4,500,000 - 1,000,000 500,000 1,000,000 1,000,000 - 1,000,000 - Emergency Bypass Installation at
Transmission Main 1,000,000 - 300,000 700,000 - - - - - - - - - - - - Cathodic Protection Anode Beds 500,000 - - - 500,000 - - - - - - - - - - - Water Connection Fees - Coating On
24-Inch Transmission Main At Seal
Slough Bridge
1,000,000 - - 1,000,000 - - - - - - - - - - - - Recycled Water Connection 1,000,000 1,000,000
East Hillsdale Blvd Loop 138,000 - - - - 138,000 - - - - - - - - - - Water System Improvements 4,500,000 - - - - - - - - 750,000 750,000 750,000 750,000 750,000 750,000 - Chlorine Analyzers and Auto Flushers700,000 - - - - 700,000 - - - - - - - - - - Totals 18,188,000 - 550,000 2,700,000 1,500,000 1,438,000 1,000,000 1,000,000 - 1,750,000 750,000 750,000 750,000 1,750,000 750,000 3,500,000 Average 15 Year Funding 1,212,533
say 1,213,000
NOTE:

This strategy identifies the average annual cash flow requirements for funding asset replacement over a 15-year forecast. (1) - Fire hydrants are replaced as needed through the annual operating budgets. Short of a major catastrophe, it is assumed operating budgets will handle replacements
(2) - Projects identified by Water Master Plan (approved in February 2020), are based on approximate budgeting numbers and are subject to change based on Staff's analysis in the current year

4.3 Attachment 2 - Water Enterprise 15-Year CIP Costs

117

Estero Municipal Improvement District Attachment 3 - Wastewater Enterprise CIP Funding Strategy Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 Wastewater Enterprise Fund Funding Strategy
15-Year Fund Balance Analysis
Fund Balance Analysis - 15-Year Forecast (FYE 6/30) 15 year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Total Beginning Fund Balance 8,782,957 6,757,694 2,080,382 2,180,382 5,180,382 4,080,382 4,180,382 4,590,382 1,990,382 5,090,382 5,990,382 9,090,382 5,990,382 9,090,382 5,990,382 8,782,957 Less: Capital Improvement Expenditures (10,625,263) (12,277,312) (3,000,000) (100,000) (4,200,000) (3,000,000) (2,690,000) (5,700,000) - (2,200,000) - (6,200,000) - (6,200,000) - (56,192,575) Add: Other Funding Sources
Wastewater Connection Fees 1,000,000 - - - - - - - - - - - - - - 1,000,000 Add: Annual Long-Term CIP Funding from Operations (1) 11,347,000 11,347,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 6,847,000 111,705,000 (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (3,747,000) (56,205,000) Ending Fund Balance 6,757,694 2,080,382 2,180,382 5,180,382 4,080,382 4,180,382 4,590,382 1,990,382 5,090,382 5,990,382 9,090,382 5,990,382 9,090,382 5,990,382 9,090,382 9,090,382 Less Minimum Fund Balance Requirement 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excess Fund Balance Over Minimum Requirement 4,757,694 80,382 180,382 3,180,382 2,080,382 2,180,382 2,590,382 (9,618) 3,090,382 3,990,382 7,090,382 3,990,382 7,090,382 3,990,382 7,090,382 7,090,382 Net Annual Long-Term CIP Funding from Operations (1) - (2)7,600,000 7,600,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 55,500,000 NOTE:

4.3 Attachment 3 - Wastewater Enterprise CIP Funding Strategy

118

Estero Municipal Improvement District Attachment 4 - Wastewater Enterprise 15-Year CIP Costs Long-Range CIP Planning
15-Year Forecasts and Funding Options
FY 2024-2025 through FY 2038-2039 Wastewater Enterprise Fund Funding Strategy
15-Year Cash Flow Model
Cash Flow Requirements - 15-Year Forecast (FYE 6/30)
Asset Category
Total Cash
Flow
Requirements 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Lift Stations - Phase 6 8,900,000 - 7,900,000 1,000,000 - - - - - - - - - - - - Lift Stations - Phase 7 6,200,000 - - 3,200,000 3,000,000 - - - - - - - - - Lift Stations - Phase 8 5,700,000 - - - - - 5,700,000 - - - - - - - Lift Stations - Phase 9 6,200,000 - - - - - - - - - 6,200,000 - - - Emergency Generators Replacement3,900,000 1,900,000 2,000,000 - - - - - - - - - - - - - Shell Bridge Sanitary Sewer Force
Main Rehabilitation 500,000 500,000 - - - - - - - - - - - - - Sanitary Sewer Manhole
Replacements 2,500,000 - 500,000 2,000,000 - - - - - - - - - - - - Overflow, Redundancy, Bypassing
and Backup Power Study 1,100,000 - - - 100,000 1,000,000 - - - - - - - - - - Sanitary Sewer System Improvements1,000,000 - - - - - - 1,000,000 - - - - - - - - Wastewater Collection System
Improvements 6,090,000 - - - - - 1,690,000 - - 2,200,000 - - - 2,200,000 - Lift Station Electrical Control Upgrade4,000,000 4,000,000 Waste Water Treatment Plant 1 - - - - - - - - - - - - - - - - Waste Water Treatment Plant funded
by Operating Fund/Reserves 2 9,955,575 8,151,763 1,803,812 - - - - - - - - - - - - - Waste Water Treatment Plant EMID
only costs 3 147,000 73,500 73,500 - - - - - - - - - - - - - Totals 56,192,575 10,625,263 12,277,312 3,000,000 100,000 4,200,000 3,000,000 2,690,000 5,700,000 - 2,200,000 - 6,200,000 - 6,200,000 - Average 15 Year Funding 3,746,172
say 3,747,000
Waste Water Treatment Plant
project encumbrances 1 10,102,575 8,225,263 1,877,312 - NOTE:

This strategy identifies the average annual cash flow requirements for funding asset replacement over a 15-year forecast. (1) The District and the City of San Mateo are undertaking the rehabilitation of its jointly owned wastewater treatment plant (WWTP) located in San Mateo. Under the terms of the Joint Powers Agreement, EMID is responsible for 24.12% and the City of San Mateo is responsible for 75.88% of the WWTP costs. The estimated District apportionment of total project cost is $163.3 million through FY 2025-26. The project's debt financings have included Revenue Bonds, Revenue Notes/WIFIA loan, and a State Resolving Loan. (2) The District has capacity in its Operating Fund's working capital to pay a portion of the joint WWTP costs. (3) The District also has capacity in its Operating Fund's working capital to pay for it's sole costs consisting of consultants (EKI, Hydroscience, etc.) and legal counsel.

4.3 Attachment 4 - Wastewater Enterprise 15-Year CIP Costs

119

15-Year CIP Comparison
Fifteen Year Period
FY 23/24 - 37/38
Fifteen Year Period
FY 24/25 - 38/39
Increase
(Decrease) Notes
Water Enterprise:

Water Main Condition Assessment - 250,000 250,000 1
Permanent Emergency Bypass Transmission Main on E. Third Ave - 1,000,000 1,000,000 2 Large Water Valve Replacment (24-25) - 1,500,000 1,500,000 2 Coating on 24-inch Transmission Main at Seal Slough Bridge 1,000,000 1,000,000 - 3 Replacement of Cathodic Protection Anode Beds 500,000 500,000 - 4 Water Facilities Seismic Vulnerability Assessment 125,000 125,000 - 4 Two Engines and Pump Replacement at Water Booster Pump Station 975,000 975,000 - 4 Chlorine Analyzers and Auto Flushers 700,000 700,000 - 4 East Hillsdale Boulevard Loop - 138,000 138,000 1
Large Water Valve Replacment (Long-Term) - 3,000,000 3,000,000 5 Recycled Water Connection 1,000,000 1,000,000 - 4
Water System Improvements Project 4,500,000 4,500,000 - 4 Water Tank Inspection and Recoating 3,500,000 3,500,000 - 4 Water Transmission and Distribution Improvements/Water Valve Replacements 4,500,000 - (4,500,000) 6 Emergency Bypass Installation at Transmission Main 1,000,000 - (1,000,000) 6 Total 17,800,000 18,188,000 388,000
Wastewater Enterprise:

Emergency Generator Replacements - 3,900,000 3,900,000 2 Shell Bridge Sanitary Sewer Force Main Rehabilitation - 500,000 500,000 2 Sanitary Sewer Lift Stations (Phase 6 and 7) 14,700,000 15,100,000 400,000 7 Sanitary Sewer Manhole Replacements 2,500,000 2,500,000 - 4 Overflow, Redundancy, Bypass, and Backup Power Study 1,100,000 1,100,000 - 4 Sanitary Sewer System Improvements 700,000 1,000,000 300,000 8 Wastewater Collection System Improvements 6,090,000 6,090,000 - 4 Sanitary Sewer Lift Stations (Phase 8 and 9) 11,900,000 11,900,000 - 4 Lift Station Electrical Control Upgrade 4,000,000 4,000,000 - 4 WWTP Joint Costs to be funded by surplus Operating Fund Working Capital 14,687,484 9,955,575 (4,731,909) 9 WWTP EMID only costs 463,500 147,000 (316,500) 10
56,140,984 56,192,575 51,591
Detailed Analysis:

Note 1
$100,000 from Water Development Connection Impact Fees; Project details in the Five Year CIP Note 2
Project details in the Five-Year CIP
Note 3
$500,000 from Water Development Impact Fees; Project details in the Five-Year CIP Note 4
No funding changes recommended on this project from what was planned in FY 2023-2024; Project details in the Five-Year CIP Note 5
Large water valve replacement has been programmed approximately every 4 years to proactively maintain the infrastructure Note 6
No additional funding proposed for this project in the 15-year term Note 7
Adjusted to align with current costs; Project details in the Five-Year CIP Note 8
Adjusted to align with current estimate of costs
Note 9
WWTP Joint costs to be funded by surplus Operating Fund working capital Note 10
EMID specific costs for Wastewater Treatment Plant project to be paid with enterprise revenues and no San Mateo-Foster City PFA financings.

4.3 Attachment 5 - Water and Wastewater 15-Year CIP Comparison

120

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
37 38
39 40
41 42
43 A B C D E F G H I J K L M N O P Q R S T
Category NO. Project Name Funding Source
TOTAL - Not
Including Prior
Years
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

WATER PROJECTS
B WA-01 (NEW CIP) WATER MAIN CONDITION ASSESSMENT (2025-2026) PT 250,000 250,000 WA-02 Funding Source #1 - Water Fund CW 150,000 150,000 WA-02 Funding Source #2 - Water Development Impact Fees WCF 100,000 100,000 A WA-02 (NEW CIP) PERMANENT EMERGENCY BYPASS TRANSMISSION MAIN ON E. THIRD AVE. (2025- 2026) CW 1,000,000 300,000 700,000
B WA-03 (NEW CIP) LARGE WATER VALVE REPLACEMENT (2024-2025) CW 1,500,000 1,000,000 500,000 B WA-04 (NEW CIP) COATING ON 24-INCH TRANSMISSION MAIN AT SEAL SLOUGH BRIDGE (2026-2027) PT 1,000,000 1,000,000 WA-05 Funding Source #1 - Water Fund CW 500,000 500,000 WA-05 Funding Source #2 - Water Development Impact Fees WCF 500,000 500,000 A WA-05 (NEW CIP) REPLACEMENT OF CATHODIC PROTECTION ANODE BEDS (2026-2027) CW 500,000 500,000 A WA-06 (NEW CIP) WATER FACILITIES SEISMIC VULNERABILITY ASSESSMENT (2027-2028) CW 125,000 125,000 A WA-07 (NEW CIP) TWO ENGINES AND PUMP REPLACEMENT AT WATER BOOSTER PUMP STATION (2027-2028) CW 975,000 375,000 600,000
A WA-08 (NEW CIP) CHLORINE ANALYZERS AND AUTOFLUSHERS AT VARIOUS LOCATIONS (2027-2028) CW 700,000 700,000 B WA-09 (NEW CIP) EAST HILLSDALE BOULEVARD LOOP (2028-2029) CW 138,000 138,000 (NEW CIP) LARGE WATER VALVE REPLACEMENT (2028-2029) CW 1,000,000 1,000,000 (NEW CIP) RECYCLED WATER CONNECTION CW 1,000,000 1,000,000 (NEW CIP) LARGE WATER VALVE REPLACEMENT PROJECT CW 2,000,000 1,000,000 1,000,000 (NEW CIP) WATER SYSTEM IMPROVEMENTS PROJECT CW 4,500,000 750,000 750,000 750,000 750,000 750,000 750,000 (NEW CIP) WATER TANK INSPECTION AND RECOATING CW 3,500,000 3,500,000 18,188,000 - 550,000 2,700,000 1,500,000 1,438,000 1,000,000 1,000,000 - 1,750,000 750,000 750,000 750,000 1,750,000 4,250,000 - Category NO. Project Name Funding Source TOTAL 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-2038 2038-2039

WASTEWATER PROJECTS
A WW-01 (CIP 455-652) WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS (2015-2016) PT 10,102,575 8,225,263 1,877,312 - Fund 455 WW-01 Funding Source #1 - Wastewater Fund for WWTP Joint Costs District Surplus Cash CWW 9,955,575 8,151,763 1,803,812 Fund 455 WW-01 Funding Source #2 - Wastewater Fund for WWTP District Costs Only CWW 147,000 73,500 73,500 A WW-02 (CIP 455-705) EMERGENCY GENERATOR REPLACEMENTS (2021-2022) CWW 3,900,000 1,900,000 2,000,000 A WW-03 (CIP 455-710) SHELL BRIDGE SANITARY SEWER FORCE MAIN REHABILITATION (2022-2023) CWW 500,000 500,000 A WW-04 (CIP 455-719) SANITARY SEWER LIFT STATION IMPROVEMENTS - PHASE 6 (2023-2024) CWW 8,900,000 7,900,000 1,000,000 A WW-05 (NEW CIP) SANITARY SEWER MANHOLE REPLACEMENTS (2024-2025) CWW 2,500,000 500,000 2,000,000 B WW-06 (NEW CIP) OVERFLOW, REDUNDANCY, BYPASSING AND BACKUP POWER STUDY (2026-2027) CWW 1,100,000 100,000 1,000,000 A WW-07 (NEW CIP) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 7 (2027-2028) CWW 6,200,000 3,200,000 3,000,000 (CIP 455-696) SANITARY SEWER SYSTEM IMPROVEMENTS (2020-2021) CWW 1,000,000 1,000,000 (NEW CIP) WASTEWATER COLLECTION SYSTEMS IMPROVEMENTS CWW 6,090,000 1,690,000 2,200,000 2,200,000 (NEW CIP) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 8 CWW 5,700,000 5,700,000 (NEW CIP) SANITARY SEWER LIFT STATIONS IMPROVEMENTS - PHASE 9 CWW 6,200,000 6,200,000 (NEW CIP) LIFT STATION ELECTRICAL CONTROL UPGRADE CWW 4,000,000 4,000,000 56,192,575 10,625,263 12,277,312 3,000,000 100,000 4,200,000 3,000,000 2,690,000 5,700,000 - 2,200,000 - 6,200,000 - 6,200,000 - Q:\PubWorks\BUDGET\Budget 2024-2025\CIP\2024-03-25 Long Term CIP\Enterprise Long-Term CIP\CIP 15yr forecast WATER and WASTEWATER BUDGET Attachments 2024.03.08 1

4.3 Attachment 6 - Capital Improvement Program Fiscal Year 2024-2025 through Fiscal Year 2038-2039

121

DATE: March 25, 2024

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

FROM: Andrew Brozyna, Public Works Director/City Engineer Edmund Suen, Finance Director
Zaheed Danish, Public Works Maintenance Manager
DEPARTMENT: Public Works, Finance
SUBJECT: REVIEW OF PROJECTED WATER RATES FOR FY 2024-2025

AND POLICY DIRECTION FOR RATE NOTIFICATION UNDER
PROPOSITION 218

RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors accept this report regarding Water Rates based upon the attached Draft Water Rate Study Update Results Memo dated March 1, 2024, prepared by Bartle Wells Associates (BWA) and by Minute Order provide direction on the issuance of a notice to all rate payers under the requirements of Proposition 218 for a public hearing to be held on June 3, 2024 regarding Water Rates for FY 2024-2025.

EXECUTIVE SUMMARY
The EMID water enterprise is in good financial shape; its water service rates remain below the average rates compared to other agencies on the Bay Area Peninsula, and it is debt free. As of July 1, 2023, the Operating Reserve balance was $9,617,989, to be used in case of an operational emergency or to smooth any “rate shocks” to water customers. However, as much of EMID’s infrastructure is in its fifth decade in service, some of its components are nearing the end of their expected service life. In Fiscal Year 2019- 2020, the District completed a 20-year master plan study which identified

4.4 4.4 Staff Report

122

and prioritized projects for a 20-year time horizon. The costs for recommended projects have been incorporated into the 10-year Water Enterprise projections and the rate model developed by consultant Bartle Wells Associates (BWA). The recommended water rates would provide sufficient revenue for necessary maintenance, operations, and capital improvements for the five-year period including FY 2024-2025. Included below is a snapshot of Table 7 from Appendix C of the BWA Water Rate Study Updates Results Memo (Attachment 1). This table shows the proposed water rates for FY 2024- 2025 and a projection of future water rates necessary to support the operation. As seen in the table, water bills are composed of two components, a fixed monthly charge based on meter size, plus a water consumption charge based on each customer’s metered water use. The fixed monthly charge corresponds to the District’s fixed costs to provide water delivery to customers, based upon the size of the meter.

Included below is Table 9 from Attachment 1, which provides more information about how the proposed new rates impact ratepayers in FY 2024-2025 and projects the impact into the future. The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The proposed water rates are designed to cover District operating and capital costs and maintain the operating fund above the 25% target reserve level. The recommended rate reflects increases of 4.5% for fixed Table 7City of Foster City / Estero Municipal Improvement DistrictProposed Water Rates - Two Tier Hybrid Model Current Rates FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 Monthly Meter Charge3/4" $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35.80 $37.25 $38.75 $40.30 $41.901" 46.00 48.08 50.25 52.50 54.83 57.33 59.67 62.08 64.58 67.17 69.831-1/2" 110.40 115.40 120.60 126.00 131.60 137.60 143.20 149.00 155.00 161.20 167.602" 147.20 153.87 160.80 168.00 175.47 183.47 190.93 198.67 206.67 214.93 223.473" 322.00 336.58 351.75 367.50 383.83 401.33 417.67 434.58 452.08 470.17 488.834" 579.60 605.85 633.15 661.50 690.90 722.40 751.80 782.25 813.75 846.30 879.906" 1,288.00 1,346.33 1,407.00 1,470.00 1,535.33 1,605.33 1,670.67 1,738.33 1,808.33 1,880.67 1,955.338" or greater 2,208.00 2,308.00 2,412.00 2,520.00 2,632.00 2,752.00 2,864.00 2,980.00 3,100.00 3,224.00 3,352.00 Conservation-Based Water Rate Model (based on bi-monthly allotments)Single Family ResidentialTier 1 0-20 per ccf 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 Over 20 ccf 7.01 7.33 7.60 7.84 8.09 8.36 8.67 8.89 9.12 9.36 9.60Multi-Family Residential (per living unit)Tier 1 0-10 ccf per living unit 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 Over 10 ccf per living unit 7.09 7.36 7.64 7.88 8.13 8.40 8.71 8.93 9.16 9.40 9.64Irrigation CustomersTier 1 <=100% of annual budget 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 >100% of annual budget 7.22 7.80 8.08 8.31 8.55 8.82 9.13 9.35 9.58 9.81 10.05Commercial and Fire Line CustomersBase Consumption Rate 6.47 6.72 6.98 7.23 7.50 7.77 8.08 8.30 8.53 8.77 9.02 Monthly Fire Meter Charge3/4" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.661" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.661-1/2" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.662" 51.61 53.95 56.38 58.91 61.52 64.33 66.95 69.66 72.46 75.36 78.353" 112.61 117.71 123.01 128.52 134.23 140.35 146.06 151.98 158.10 164.42 170.954" 202.86 212.05 221.60 231.53 241.82 252.84 263.13 273.79 284.81 296.21 307.976" 450.71 471.12 492.35 514.40 537.26 561.75 584.61 608.29 632.79 658.10 684.238" or greater 772.80 807.80 844.20 882.00 921.20 963.20 1,002.40 1,043.00 1,085.00 1,128.40 1,173.20(Minimum charge is equivalent to 1-1/2" meter charge)

TWO TIER HYBRID MODEL
Recommended Rates

4.4 4.4 Staff Report

123

charges and 3.8% for variable charges. The average bill for a single-family home would increase by 4% or $3.17 per month.

Based upon the EMID Board of Directors’ policy direction, the District will mail a notice to all ratepayers prior to the April 19, 2024, statutory deadline for a public hearing as required by Proposition 218. The hearing will be held on June 3, 2024, and, if adopted, the new rates will go into effect on July 1, 2024.

BACKGROUND/ANALYSIS
The District provides water service to approximately 8,285 water service and fire protection service accounts/meters. Most of the District’s customers are residential.

The primary drivers for the proposed FY 2024-2025 rates include the following:
•Cost of Wholesale Water from the SFPUC. The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the SFPUC wholesale water rate. The SFPUC, the sole source of water supply for the District, is projecting the current rate of $5.21 per hundred cubic feet (ccf) in FY 2024 will increase to $5.55 in FY 2025. The proposed water rates are designed to phase in District rate increases over time to avoid sharp increases.
•Bay Area Water Supply and Conservation Agency (BAWSCA) Surcharge.

The District will continue to make annual payments to BAWSCA for capital improvement costs associated with the $4.8 billion Water System Improvement Project (WSIP) to upgrade the Hetch Hetchy Water System. The bond surcharge for each BAWSCA agency is typically a fixed annual amount that is adopted each fiscal year by the BAWSCA Board to ensure collection of necessary revenue to pay that year’s obligated debt service. For FY 2024-2025, the payment will be $601,416.

Table 9
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Two Tier Hybrid Model
Single Family Residential Monthly Rate $78.48 $81.65 $84.95 $88.38 $91.94 $95.68 $99.48 $102.69 $106.03 $109.58 $113.10 $ Increase 3.17 3.30 3.43 3.56 3.74 3.80 3.21 3.34 3.55 3.52 % Increase 4.0% 4.0% 4.0% 4.0% 4.1% 4.0% 3.2% 3.3% 3.3% 3.2% Based on Single Family Residential Use of 8 ccf
Fiscal Year Ending June 30 Extended Year ProjectionProjected Water Bills

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•System Water Losses. Water utilities incur real losses from pipeline leakage and apparent losses when customer water consumption is not properly measured or billed. The current water rates are calculated with 10.0% water loss based on the Water Division’s records. The proposed water rates are designed to cover the water loss and fund projects, such as water meter replacements, that reduce water loss.
•Capital Funding. EMID's strategy for funding long-term capital water improvements calls for an annual transfer from water operating revenues to the City's Capital Improvement Fund to fund those projects over the next 15 years.

The proposed rate projections include a capital set aside of $1,000,000 annually through the ten-year term.
•Conservation Costs. District staff is recommending that the EMID Board of Directors continue to allocate $200,000 annually to the Water Sustainability Rebate Program to encourage voluntary water conservation efforts and provide funding for the District water leakage detection and repair program. •Operational Costs. BWA projections for operations and maintenance costs assume 4.0% annual increases in personnel costs and 2.5% annual increases in all other costs (excluding wholesale water purchases) to keep revenues in line with operating expenses.

Water/Wastewater Rate Assistance Program
In Rate Year 2020-2021, the District Board approved an assistance program for customers whose income also qualified them for Pacific Gas and Electric Company’s California Alternate Rates for Energy (CARE) discount program. While it is not possible to know exactly how many households qualify, based upon the number of customers enrolled in the PG&E CARE program, BWA estimates that approximately 227 customers may potentially be eligible for the up to $15 per month discount. As of March 1, 2024, there were twenty five (25) customers enrolled in the program. Participation in the Water/Wastewater Rate Assistance Program (W/WRAP) is supported by non-rate sources of revenue such as fines and penalties, to maintain compliance with California Proposition 218, so water rates are unaffected by participation in the program.

The cost of the W/WRAP, based on current enrollment, is $4,500 per year for the Water Enterprise. The maximum potential cost of a $15/month discount for all estimated 227 eligible customers is $41,000 per year. Through the first eight months of FY 2024, revenue from delinquent water payments totaled $31,000, which is sufficient to fund the program. Staff will continue to monitor the funding sources available for the program.

The W/WRAP is authorized by the EMID Board on an annual basis, and authorization to continue the program will be an action item on the agenda with the consideration of rates in June.

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Rate Smoothing
The EMID Board of Directors has implemented a long-term rate smoothing model that takes into consideration the long-range wholesale water rate projections by the SFPUC and significant capital improvements that have a profound impact on rates, such as the WSIP program. The rate smoothing model attempts to maintain revenue increases at no greater than 10% per year. The proposed FY 2024-2025 rates use a 10-year model, which has proven to be successful in dampening the impacts of significant rate increases imposed by the SFPUC on the ratepayers.

Rate Survey
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential monthly water bill with neighboring communities. The results of the survey are summarized on the Typical Single Family Residential Monthly Water Charges chart in Appendix B of Attachment 1. Since it is unknown what the comparator agencies will be proposing for FY 2024-2025, the District compares its current monthly residential water bills to the current rates of the neighboring agencies. The survey indicates the District's water rates remain among the lowest on the Peninsula. For FY 2023-2024, the average monthly water bill for the region (based on 8 hcf of water for monthly usage) is $106.08 per month and the District’s FY 2023-2024 average monthly residential water bill is $78.48 per month, or about 26% less than the current average of neighboring communities.

Proposition 218 Notification
District staff requests that the EMID Board of Directors review the information prepared by BWA and staff and provide direction regarding water rates for FY 2024-2025. Based on that direction, District staff will prepare a notice that will be mailed to all ratepayers on or before April 19, 2024, in compliance with the provisions of Proposition 218. A public hearing on and adoption of the proposed rates will be agendized for the June 3, 2024 EMID Board of Directors regular meeting in conjunction with the FY 2024-2025 Annual Budget Public Hearing. If adopted, the new rates will become effective July 1, 2024. Between the Public Notice mailing date and the public hearing date, the EMID Board of Directors will receive the FY 2024-2025 Preliminary Annual Budget and Five- Year Financial Plan. Any adjustments that occur based upon EMID Board direction at the Budget Study Session will be incorporated into an updated rate model at the time of the public hearing. However, it is the opinion of District staff that conservative assumptions have been employed in the creation of the attached rate models.

Accordingly, District staff believes that the rates proposed herein are the maximum rates that would be recommended for FY 2024-2025. At the public hearing, the EMID Board would have the option to adopt rates equal to or lower than what is noticed to rate payers under Proposition 218, but it may not increase the rates above what is noticed. Recent case law and EMID experience with wastewater rates have demonstrated that there are a number of advantages to adopting rate plans that set rates for multiple years, so it is anticipated that staff will bring a multi-year

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recommendation aligned with the wastewater rate setting process for rate year 2025- 2026 and beyond. Under state law, the District may adopt a rate plan that covers a maximum of five years.

CEQA
Not Applicable

FISCAL IMPACT
There is no impact to receiving this report and authorizing the preparation of the Proposition 218 Notice. Further, rate revenue provides all funding for the water distribution service costs in the EMID service area as described in this staff report and its attachment. The costs of these services do not impact the City budget or the General Fund.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
Innovation and Sustainability
Smart Planning, Development, and the Local Economy

ATTACHMENTS
Attachment 1 – Bartle Wells Associates Water Rate Study Update Results Memo dated March 15, 2024

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2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE: March 15th, 2024
TO: City of Foster City/Estero Municipal Improvement District FROM: Bartle Wells Associates
SUBJECT: Water 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 Enterprise and to project water rate adjustments for the next five-year period. BWA last conducted formal rate studies in 2023, which resulted in a one-year rate approval for water rates for FY 2024.

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

Water Enterprise Summary
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 increased debt service on existing and newly issued bonds, continued low water usage, 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 2025 to FY 2029). SFPUC is projecting the current rate of $5.21 in FY 2024 per hundred cubic feet (ccf) will increase to $5.55 in FY 2025, $5.63 in FY 2026, $5.93 in FY 2027, $6.37 in FY 2028, and $6.60 in FY 2029.

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

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account. The balancing account was built up from SFPUC wholesale water sales exceeding projections used in rate setting. In FY 2023, the wholesale rate increased 15.9% to $4.75/ccf and 9.7% to $5.21 in FY 2024. Despite these increases, the balancing account now shows wholesale customers owe SFPUC $9.7 million. Wholesale rate increases are projected to return the balancing account to zero by FY 2026.

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 $601,416 in FY 2025, to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the Water System Improvement Project (WSIP) that was 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 $1,000,000 per year for capital improvements. The capital improvement transfer amount is based on funding the District’s water master plan.

Proposed water rates are based on 10% water loss. That is, 90% of the water EMID purchases are sold to retail customers. The losses have decreased over time due to the District’s efforts to replace aging meters. Water loss refers to the difference between the amount of water put into the distribution system and the amount of water billed to customers. This loss can be categorized into two main types:
•Real Losses: These are physical losses of water from the system due to leaks, overflows, or breaks in the water mains, service lines, and other infrastructure.

Real losses can be caused by aging infrastructure, corrosion, damage, or faulty installation.
•Apparent Losses: These are non-physical losses that occur due to inaccuracies in metering, data handling errors, or unauthorized consumption (water theft).

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To maintain the operating reserves, fund the capital set aside, and phase in volumetric rates, BWA recommends the District implement a 3.8% volumetric rate increase and a

4.5% meter charge increase in FY 2025. The average bill for a single family home would increase by 4% or $3.17 per month.

Detailed water rate calculations are shown in APPENDIX C.

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

The water survey compares a monthly water bill for 8 units of water which would be a common residential consumption. Including the recommended increase, the District’s average monthly water bill proposed for FY 2025 is $81.65. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2024 monthly residential water bills to the FY 2024 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 8 ccf is $106.08 per month and the District’s average monthly residential water bill is $78.48 per month, or about 26% less. Since the proposed increase is also less than the FY 2024 average, it is likely that EMID customers will continue to pay much lower than average water bills.

APPENDIX D shows how the combined water and wastewater bills compare to regional agencies based on FY 2024 rates. The average monthly combined water and wastewater bill for the region is $225.98. The District’s total combined water and wastewater bill is $209.35 per month, or about 7.4% less than the regional average.

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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 8,285 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: 01/23/24
Water Service
3/4" 6,825 1.00 6,825
1" 463 1.67 772
1-1/2" 180 4.00 720
2" 381 5.33 2,032
3" 89 11.67 1,038
4" 61 21.00 1,281
6" 39 46.67 1,820
8" or greater 19 80.00 1,520
Subtotal 8,057 16,008
Private Fire Protection Service
3/4" 1 1.40 1
1" 7 1.40 10
1-1/2" 3 1.40 4
2" 0 1.87 0
3" 2 4.08 8
4" 35 7.35 257
6" 95 16.33 1,551
8" or greater 85 28.00 2,380
Subtotal 228 4,212
Total 8,285 20,220
Source: Foster City/Estero Municipal Improvement District water use records [2] Private fire protection service ratio based on the fire service line; Resolution No. 2715 [3] Equals the number of accounts multiplied by the meter ratio for each meter size.

Meter Size Accounts Meter Ratio1,2 Est. Meter Equivalents3 [1] The meter ratios shall be based on meter size in compliance with ratios established by the American Water Works Association (AWWA) Sizing Water Service Lines and Meters M22, Second Edition, 2004 (M22 Manual)

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Table 2 illustrates the current reserves that the District can draw down in case of emergency or to smooth any “rate shocks” to its customers.

The District is meeting its 90-day operating fund reserve target (estimated to be $4.4 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.

The wholesale water purchase rates that SFPUC is projecting through FY 2029 are shown graphically in CHART A. The SFPUC rates are projected to increase from $5.21/ccf in FY 2024 to $6.60/ccf in FY 2029.

Table 2
City of Foster City / Estero Municipal Improvement District Water Enterprise Operating Reserves
July 1, 2023
Fund Reserve Component Reserve Balance
Reserved for Maintenance & Operation (401) $9,617,989
Total $9,617,989
operating expenditures.

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

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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 22%.

Table 3City of Foster City / Estero Municipal Improvement District Water Enterprise O&M Projection RevisedBudgetFY2024 FY2025 FY2026 FY2027 FY2028 FY2029Employee Services 2,630,464 2,962,550 3,081,052 3,204,294 3,332,466 3,465,764 4.0%Internal Services - Others 1,053,625 1,244,701 1,275,819 1,307,714 1,340,407 1,373,917 2.5%Internal Services - ERF 448,097 456,767 468,186 479,891 491,888 504,185 2.5%Services & Supplies 750,362 817,062 837,489 858,426 879,886 901,884 2.5%SFPUC Water Purchases 9,590,517 10,247,000 10,433,000 11,026,000 11,883,000 12,356,000 variesBAWSCA Bond Repayment 594,012 601,416 601,416 601,416 601,416 601,416 Reallocation [2] 1,267,042 1,368,966 1,403,190 1,438,270 1,474,227 1,511,082 2.5%Water Sustainability 200,000 200,000 200,000 200,000 200,000 200,000 Capital Outlay/Vehicles 600,000 - - - - -
TOTAL O&M Expenditures 17,134,119 17,898,462 18,300,151 19,116,011 20,203,290 20,914,2494.5% 2.2% 4.5% 5.7% 3.5% [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.

Five Year Projection Annual % Increase [1]Expenditures

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Table 4 summarizes the current water rates. The District has variable expenditures which are expenditures that are impacted by the amount of water its customers consume. These costs must be recouped via its volumetric water charge, $6.36 per ccf in FY 2024. Likewise, the District’s meter charges recover fixed expenditures, expenditures that are fixed regardless of amount of water that is consumed, $27.60 for a ¾” meter in FY 2024.

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 historical 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 2024
Fixed Meter Charge
Monthly Meter Charge
Meter Size
3/4" $27.60
1" $46.00
1-1/2" $110.40
2" $147.20
3" $322.00
4" $579.60
6" $1,288.00
8" or greater $2,208.00
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf $6.36
Tier 2 Over 20 ccf $7.01
Multi-Family Residential
Tier 1 0-10 ccf per living unit $6.36
Tier 2 Over 10 ccf per living unit $7.09
Irrigation Customers
Tier 1 <=100% of annual budget $6.36
Tier 2 >100% of annual budget $7.22
Commercial and Fire Line
All usage $6.47
Monthly Private Fire Protection Charge
Meter Size
3/4" $38.64
1" $38.64
1-1/2" $38.64
2" $51.61
3" $112.61
4" $202.86
6" $450.71
8" or greater $772.80

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Low Income Discount
Currently Foster City has approximately 25 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 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.

The estimated maximum potential cost of a $15/month discount for 25 customers amounts to $4,500 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.

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 discount is recommended to be provided as funds are available. Late penalties collected year to date for water in FY 2024 amounted to $31,000, exceeding the cost of the program.

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APPENDIX A

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APPENDIX B

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APPENDIX C

Table 5City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Fiscal Year Ending June 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Assumptions:Interest Earnings Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Revenue Increase from Growth [1] 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37%Fixed Charge $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35.80 $37.25 $38.75 $40.30 $41.90Fixed Rate Adjustment 4.5% 4.5% 4.5% 4.4% 4.6% 4.1% 4.1% 4.0% 4.0% 4.0%SFR Variable Charge $6.36 $6.60 $6.85 $7.11 $7.38 $7.66 $7.96 $8.18 $8.41 $8.66 $8.90Variable Rate Adjustment 3.8% 3.8% 3.8% 3.8% 3.8% 3.9% 2.8% 2.8% 3.0% 2.8%Monthly Service Charge Single Family (8 ccf) $78.48 $81.65 $84.95 $88.38 $91.94 $95.68 $99.48 $102.69 $106.03 $109.58 $113.10Rate Adjustment 4.0% 4.0% 4.0% 4.0% 4.1% 4.0% 3.2% 3.3% 3.3% 3.2% Beginning Fund Balance $9,617,989 $9,247,000 $8,692,500 $8,530,300 $8,374,300 $7,997,000 $7,811,800 $7,895,400 $8,118,000 $8,485,600 $9,025,200 RevenuesWater Sales & Service ChargesMeter Charge Revenue Estimate 6,697,000 7,026,000 7,369,000 7,727,000 8,101,000 8,501,000 8,879,000 9,273,000 9,681,000 10,105,000 10,545,000Volumetric Revenue Estimate 10,628,000 11,083,000 11,545,000 12,012,000 12,508,000 13,018,000 13,573,000 14,000,000 14,440,000 14,911,000 15,384,000Connection Fees [1] 366,255 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000Interest Earnings - Operating Reserve [2] 192,000 185,000 174,000 171,000 167,000 160,000 156,000 158,000 162,000 170,000 181,000Other 0 0 0 0 0 0 0 0 0 0 0Operating Revenues 17,883,255 18,344,000 19,138,000 19,960,000 20,826,000 21,729,000 22,658,000 23,481,000 24,333,000 25,236,000 26,160,000 ExpensesEmployee Services 2,630,464 2,962,550 3,081,052 3,204,294 3,332,466 3,465,764 3,604,000 3,748,000 3,898,000 4,054,000 4,216,000Internal Services - Others 1,053,625 1,244,701 1,275,819 1,307,714 1,340,407 1,373,917 1,408,000 1,443,000 1,479,000 1,516,000 1,554,000Internal Services - ERF 448,097 456,767 468,186 479,891 491,888 504,185 517,000 530,000 543,000 557,000 571,000Services & Supplies 750,362 817,062 837,489 858,426 879,886 901,884 924,000 947,000 971,000 995,000 1,020,000SFPUC Water Purchases 9,590,517 10,247,000 10,433,000 11,026,000 11,883,000 12,356,000 12,771,000 13,201,000 13,645,000 14,104,000 14,579,000BAWSCA Bond Repayment 594,012 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416Reallocation 1,267,042 1,368,966 1,403,190 1,438,270 1,474,227 1,511,082 1,549,000 1,588,000 1,628,000 1,669,000 1,711,000Capital Outlay / Vehicles 600,000 0 0 0 0 0 0 0 0 0 0Operating Expenses 16,934,119 17,698,462 18,100,151 18,916,011 20,003,290 20,714,249 21,374,416 22,058,416 22,765,416 23,496,416 24,252,416 Operating Net Revenues 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584 Water Sustainability Fund Transfer 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000Capital Improvement Transfer [3] 1,120,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Expenses 18,254,119 18,898,462 19,300,151 20,116,011 21,203,290 21,914,249 22,574,416 23,258,416 23,965,416 24,696,416 25,452,416 Revenues Less O&M Expenses 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584 Revenues Less Total Expenses (370,864) (554,462) (162,151) (156,011) (377,290) (185,249) 83,584 222,584 367,584 539,584 707,584 Ending Fund Balance 9,247,125 8,692,538 8,530,349 8,374,289 7,997,010 7,811,751 7,895,384 8,117,984 8,485,584 9,025,184 9,732,784 Revenue Test: Annual Revenues > O&M ExpensesAnnual Revenues Less O&M Expenses 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: Minimum Fund Balance > 25% O&M ExpensesYear-end fund balance 9,247,125 8,692,538 8,530,349 8,374,289 7,997,010 7,811,751 7,895,384 8,117,984 8,485,584 9,025,184 9,732,78425% operating expenses 4,180,000 4,360,000 4,460,000 4,660,000 4,930,000 5,110,000 5,270,000 5,440,000 5,610,000 5,790,000 5,980,000# of Days O&M in Reserves 199 179 172 162 146 138 135 134 136 140 146Pass/fail 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 Five Year Projection Extended Year Projection

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Table 6City of Foster City / Estero Municipal Improvement DistrictWater Rate Calculation - Two Tier Hybrid Model Fiscal Year Ending June 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Fixed Meter Charge Increase 4.50% 4.50% 4.50% 4.50% 4.50% 4.00% 4.00% 4.00% 4.00% 4.00%Fixed Revenues +/- 5% of Fixed Costs? YES YES YES YES YES YES YES YES YES YES Reserves % Above (Below) Reserve Target 199.4% 191.3% 179.7% 162.2% 152.9% 149.8% 149.2% 151.3% 155.9% 162.8%Reserve Target Met? YES YES YES YES YES YES YES YES YES YES Revenue EstimatesMeter Charge Revenue 6,697,000$ 7,026,000$ 7,369,000$ 7,727,000$ 8,101,000$ 8,501,000$ 8,879,000$ 9,273,000$ 9,681,000$ 10,105,000$ 10,545,000$ Other Fixed Revenue 558,255$ 235,000$ 224,000$ 221,000$ 217,000$ 210,000$ 206,000$ 208,000$ 212,000$ 220,000$ 231,000$ Volumetric Revenue 10,628,000$ 11,081,000$ 11,552,000$ 12,009,000$ 12,510,000$ 13,007,000$ 13,574,000$ 14,002,000$ 14,441,000$ 14,900,000$ 15,388,000$ Total Projected 17,883,255$ 18,342,000$ 19,145,000$ 19,957,000$ 20,828,000$ 21,718,000$ 22,659,000$ 23,483,000$ 24,334,000$ 25,225,000$ 26,164,000$ Total Projected Revenue (Rounded '000's) 17,883,000$ 18,342,000$ 19,145,000$ 19,957,000$ 20,828,000$ 21,718,000$ 22,659,000$ 23,483,000$ 24,334,000$ 25,225,000$ 26,164,000$ $17,883,255 $18,344,000 $19,138,000 $19,960,000 $20,826,000 $21,729,000 $22,658,000 $23,481,000 $24,333,000 $25,236,000 $26,160,000 Revenue AllocationFixed 40.6% 39.6% 39.7% 39.8% 39.9% 40.1% 40.1% 40.4% 40.7% 40.9% 41.2%Variable 59.4% 60.4% 60.3% 60.2% 60.1% 59.9% 59.9% 59.6% 59.3% 59.1% 58.8% Costs EstimatesFixed Costs [1] $7,869,590 $7,850,046 $8,065,735 $8,288,595 $8,518,874 $8,756,833 $9,002,000 $9,256,000 $9,519,000 $9,791,000 $10,072,000Variable Costs [2] $10,384,529 $11,048,416 $11,234,416 $11,827,416 $12,684,416 $13,157,416 $13,572,416 $14,002,416 $14,446,416 $14,905,416 $15,380,416Total Projected Costs $18,254,119 $18,898,462 $19,300,151 $20,116,011 $21,203,290 $21,914,249 $22,574,416 $23,258,416 $23,965,416 $24,696,416 $25,452,416 Net Revenue Fixed Charges -$614,335 -$589,046 -$472,735 -$340,595 -$200,874 -$45,833 $83,000 $225,000 $374,000 $534,000 $704,000Volumetric Charges $243,471 $32,584 $317,584 $181,584 -$174,416 -$150,416 $1,584 -$416 -$5,416 -$5,416 $7,584Total -$370,864 -$556,462 -$155,151 -$159,011 -$375,290 -$196,249 $84,584 $224,584 $368,584 $528,584 $711,584 Cost AnalysisFixed 43.1% 41.5% 41.8% 41.2% 40.2% 40.0% 39.9% 39.8% 39.7% 39.6% 39.6%Variable 56.9% 58.5% 58.2% 58.8% 59.8% 60.0% 60.1% 60.2% 60.3% 60.4% 60.4% Meter Charge CalculationMonthly charge per meter equivalent 27.60$ 28.85$ 30.15$ 31.50$ 32.90$ 34.40$ 35.80$ 37.25$ 38.75$ 40.30$ 41.90$ (Rounded to nearest $0.05)Annual charge per meter equivalent 331.20$ 346.20$ 361.80$ 378.00$ 394.80$ 412.80$ 429.60$ 447.00$ 465.00$ 483.60$ 502.80$ Meter equivalents [3] 20,220 20,294 20,368 20,443 20,518 20,593 20,668 20,744 20,820 20,896 20,973 Meter Charge Revenue Estimate 6,697,000$ 7,026,000$ 7,369,000$ 7,727,000$ 8,101,000$ 8,501,000$ 8,879,000$ 9,273,000$ 9,681,000$ 10,105,000$ 10,545,000$ Volumetric Rate CalculationEMID Proposed Uniform Rate $6.47 6.72$ 6.98$ 7.23$ 7.50$ 7.77$ 8.08$ 8.30$ 8.53$ 8.77$ 9.02$ Projected annual water sales (ccf) [4] 1,642,652 1,649,000 1,655,000 1,661,000 1,668,000 1,674,000 1,680,000 1,687,000 1,693,000 1,699,000 1,706,000Variable revenue estimate $10,628,000 $11,081,000 $11,552,000 $12,009,000 $12,510,000 $13,007,000 $13,574,000 $14,002,000 $14,441,000 $14,900,000 $15,388,000 % Spread between EMID and SFPUC Surcharge 24.2% 21.1% 24.0% 21.9% 17.7% 17.7% 18.9% 18.5% 18.3% 18.1% 17.9%SFPUC PROJECTED RATES $5.21 $5.55 $5.63 $5.93 $6.37 $6.60 $6.80 $7.00 $7.21 $7.43 $7.65Increase (Decrease) % 6.5% 1.4% 5.3% 7.4% 3.6% 3.0% 3.0% 3.0% 3.0% 3.0% BAWSCA Surcharge $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 SFPUC Rate + BAWSCA Surcharge $5.56 $5.90 $5.98 $6.28 $6.72 $6.95 $7.14 $7.35 $7.56 $7.77 $8.00 EMID Fixed Meter Charge Increase (Decrease) 4.5% 4.5% 4.5% 4.4% 4.6% 4.1% 4.1% 4.0% 4.0% 4.0%EMID Volumetric Rate Increase (Decrease) 3.9% 3.9% 3.6% 3.7% 3.6% 4.0% 2.7% 2.8% 2.8% 2.9% Note:[1] Includes: Employee Services, Internal Services - Other, Internal Services - ERF, Services & Supplies, Reallocation, Capital Outlay, Capital Improvement Fund Transfers, Debt Service, and net revenues for the operating fund.[2] Includes: SFPUC Water Purchases, BAWSCA Bond Repayment, and Water Sustainability Fund Transfers.[3] 0.37% growth estimated for planning purposes [4] Includes 10% water loss factor Five Year Projection Extended Year Projection

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Table 7City of Foster City / Estero Municipal Improvement DistrictProposed Water Rates - Two Tier Hybrid Model Current Rates FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 Monthly Meter Charge3/4" $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35.80 $37.25 $38.75 $40.30 $41.901" 46.00 48.08 50.25 52.50 54.83 57.33 59.67 62.08 64.58 67.17 69.831-1/2" 110.40 115.40 120.60 126.00 131.60 137.60 143.20 149.00 155.00 161.20 167.602" 147.20 153.87 160.80 168.00 175.47 183.47 190.93 198.67 206.67 214.93 223.473" 322.00 336.58 351.75 367.50 383.83 401.33 417.67 434.58 452.08 470.17 488.834" 579.60 605.85 633.15 661.50 690.90 722.40 751.80 782.25 813.75 846.30 879.906" 1,288.00 1,346.33 1,407.00 1,470.00 1,535.33 1,605.33 1,670.67 1,738.33 1,808.33 1,880.67 1,955.338" or greater 2,208.00 2,308.00 2,412.00 2,520.00 2,632.00 2,752.00 2,864.00 2,980.00 3,100.00 3,224.00 3,352.00 Conservation-Based Water Rate Model (based on bi-monthly allotments)Single Family ResidentialTier 1 0-20 per ccf 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 Over 20 ccf 7.01 7.33 7.60 7.84 8.09 8.36 8.67 8.89 9.12 9.36 9.60Multi-Family Residential (per living unit)Tier 1 0-10 ccf per living unit 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 Over 10 ccf per living unit 7.09 7.36 7.64 7.88 8.13 8.40 8.71 8.93 9.16 9.40 9.64Irrigation CustomersTier 1 <=100% of annual budget 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90Tier 2 >100% of annual budget 7.22 7.80 8.08 8.31 8.55 8.82 9.13 9.35 9.58 9.81 10.05Commercial and Fire Line CustomersBase Consumption Rate 6.47 6.72 6.98 7.23 7.50 7.77 8.08 8.30 8.53 8.77 9.02 Monthly Fire Meter Charge3/4" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.661" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.661-1/2" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.662" 51.61 53.95 56.38 58.91 61.52 64.33 66.95 69.66 72.46 75.36 78.353" 112.61 117.71 123.01 128.52 134.23 140.35 146.06 151.98 158.10 164.42 170.954" 202.86 212.05 221.60 231.53 241.82 252.84 263.13 273.79 284.81 296.21 307.976" 450.71 471.12 492.35 514.40 537.26 561.75 584.61 608.29 632.79 658.10 684.238" or greater 772.80 807.80 844.20 882.00 921.20 963.20 1,002.40 1,043.00 1,085.00 1,128.40 1,173.20(Minimum charge is equivalent to 1-1/2" meter charge)

TWO TIER HYBRID MODEL
Recommended Rates

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Table 8
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current FY2025
Rates Two Tier Hybrid Model
Monthly meter charge $27.60 $28.85
% Change 4.5%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf $6.36 $6.60
Tier 2: over 20 ccf $7.01 $7.33
Water Monthly
Use Level Use (ccf) Monthly Bill
Low User 5 $59.40 $61.85
$ Increase 2.45
% Increase 4.1%
Median User 6 $65.76 $68.45
$ Increase 2.69
% Increase 4.1%
Average User 8 $78.48 $81.65
$ Increase 3.17
% Increase 4.0%
High User 10 $91.20 $94.85
$ Increase 3.65
% Increase 4.0%
Very High User 20 $154.80 $168.15
$ Increase 13.35
% Increase 8.6%
Excessive User 50 $365.10 $388.05
$ Increase 22.95
% Increase 6.3%

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Table 9
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Two Tier Hybrid Model
Single Family Residential Monthly Rate $78.48 $81.65 $84.95 $88.38 $91.94 $95.68 $99.48 $102.69 $106.03 $109.58 $113.10 $ Increase 3.17 3.30 3.43 3.56 3.74 3.80 3.21 3.34 3.55 3.52 % Increase 4.0% 4.0% 4.0% 4.0% 4.1% 4.0% 3.2% 3.3% 3.3% 3.2% Based on Single Family Residential Use of 8 ccf
Fiscal Year Ending June 30 Extended Year ProjectionProjected Water Bills

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APPENDIX D
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DATE: March 25, 2024

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: Andrew Brozyna, Public Work Director/City Engineer Edmund Suen, Finance Director
Zaheed Danish, Public Works Maintenance Manager
DEPARTMENT: Public Works
Finance
SUBJECT: REVIEW OF PROJECTED WASTEWATER RATES FOR FY
2024-2025

RECOMMENDATION
It is recommended that the Estero Municipal Improvement District (EMID) Board of Directors accept this report regarding Wastewater Rates based upon the attached Draft Wastewater Rate Study Update Results Memo dated March 1, 2024, prepared by Bartle Wells Associates (BWA) and provide direction by Minute Order regarding Wastewater Rates for FY 2024-2025.

EXECUTIVE SUMMARY
EMID is responsible for its share of operating and maintenance costs that San Mateo (as the lead agency and the contracting party) incurs treating the District’s wastewater, as well as 24.12% of the capital improvement costs incurred as part of the Clean Water Program (CWP), a 10-year comprehensive capital improvement project initiated in 2014 to replace aging infrastructure and meet regulatory requirements at the Wastewater Treatment Plant (WWTP). The District’s total share of the project is approximately $164.4 million.

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In March 2018, the EMID Board of Directors adopted a rolling five-year annual wastewater rate increase of 14.25% on all wastewater rates for the period of FY 2018- 2019 to FY 2022-2023 in order to ensure that the wastewater enterprise generates enough revenue to pay for its share of the future capital improvement costs of the WWTP and to strengthen the District’s position to obtain low-cost long-term financing for that purpose. In June 2019, the District Board approved a 10% wastewater rate increase for FY 2023-2024, and in June 2020, a 2% increase for FY 2024-2025. Based upon an updated review of the District’s financial projections, the EMID Board was able to adjust FY 2023-2024 rates by only 3% in FY 2023-2024. The previously adopted 2% rate has been determined to be sufficient in FY 2024-2025.

Since the EMID Board of Directors already held a public hearing and approved the 2% maximum wastewater rates for FY 2024-2025, the District is not required to hold a public hearing to implement the recommended increase. However, Staff recommends that information about the new Wastewater rates be included in the Proposition 218 notice that will be mailed for the Water Rate public hearing.

BACKGROUND/ANALYSIS
There are approximately 13,937 wastewater accounts serviced by the District. The majority are residential with the remainder consisting of commercial and institutional accounts.

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

The rates that residential wastewater customers pay are based on a fixed charge for the category or type of residential unit (single family, townhouse/duplex, or apartment/condominium). Commercial customers are charged a variable rate based upon the amount of water consumed by their business and the business wastewater strength category.

The operational costs for wastewater treatment services are borne jointly by the District and the City of San Mateo via the San Mateo Wastewater Treatment Plant Joint Exercise of Powers Agreement executed in June 1974. Those costs include recurring operations and maintenance, as well as capital improvement costs.

The City of San Mateo and EMID are expanding the jointly owned WWTP at an estimated cost of about $670 million, of which the District is responsible for approximately $164.4 million. This is in addition to local capital projects for the District’s own wastewater collection system. The wastewater enterprise revenue model is designed to fund collection system capital expenditures through annual transfers from

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the operating fund to the capital improvement fund of $7,600,000 in FY 2024-2025 and FY 2025-2026 and $3,100,000 annually through the remainder of the 15-year term.

As of June 2020, to fund the anticipated costs of the WWTP CWP improvements, the District Board had approved 5 years of wastewater rate increases to ensure adequate funds to cover debt service: three 14.25% per year increases in FY 2020-2021 through FY 2022-2023, a 10% wastewater rate increase in FY 2023-2024, and a 2% increase in FY 2024-2025. Based upon an updated review of the District’s financial projections, the EMID Board was able to increase rates by only 3% in FY 2023-2024. The previously adopted 2% rate has been determined to be sufficient in FY 2024-2025.

The consultant and staff recommend that the District re-evaluate rates and adopt a new five year rate plan beginning in FY 2025-2026.

Wastewater Rate Impact
Single Family Residential and Multi-Family Residential class customers are billed using a flat rate. Commercial customers are billed at a variable volumetric rate based on water usage and strength classification. The new wastewater rate projections propose an overall rate increase of 2% in FY 2024-2025 over rates in FY 2023-2024. Projections for the need for 2% increases for the following four years are also included in Table 2 from the Appendix E of the BWA Rate Study Results Memo (Attachment 1).

Table 10
City of Foster City / Estero Municipal Improvement District Projected Wastewater Rate Impacts
Current
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
% Rate Increase 2.00% 2.00% 2.00% 2.00% 2.00%
Residential (flat monthly rate)
Single Family $130.87 $133.49 $136.16 $138.88 $141.66 $144.49 Increase (Decrease) 2.62 2.67 2.72 2.78 2.83
Townhouse/Duplex $109.93 $112.13 $114.37 $116.66 $118.99 $121.37 Increase (Decrease) 2.20 2.24 2.29 2.33 2.38
Apartment/Condominium (Pools w/ Restrooms) $109.93 $112.13 $114.37 $116.66 $118.99 $121.37 Increase (Decrease) 2.20 2.24 2.29 2.33 2.38
Commercial (rate per ccf of water use)
High Strength $23.78 $24.26 $24.75 $25.25 $25.76 $26.28 Increase (Decrease) per ccf 0.48 0.49 0.50 0.51 0.52
Medium/Domestic Strength $8.36 $8.53 $8.70 $8.87 $9.05 $9.23 Increase (Decrease) per ccf 0.17 0.17 0.17 0.18 0.18
Low Strength $5.50 $5.61 $5.72 $5.83 $5.95 $6.07
Increase (Decrease) per ccf 0.11 0.11 0.11 0.12 0.12
Projected - Fiscal Year Ending June 30Projected Rates

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Water/Wastewater Rate Assistance Program (W/WRAP)
In Rate Year 2020-2021, the District Board approved an assistance program for customers whose income also qualified them for Pacific Gas and Electric Company’s California Alternate Rates for Energy (CARE) discount program. While it is not possible to know exactly how many households qualify, based upon the number of customers enrolled in the PG&E CARE program, BWA estimates that approximately 227 customers may potentially be eligible for the up to $15 per month discount. As of March 1, 2024, there were twenty-five (25) customers enrolled in the program. Participation in the W/WRAP is supported by non-rate sources of revenue such as fines and penalties, to maintain compliance with California Proposition 218, so rates are unaffected by participation in the program.

The cost of the W/WRAP, based on current enrollment, is $4,500 per year for the Wastewater Enterprise. The maximum potential cost of a $15/month discount for all estimated 227 eligible customers is $41,000 per year. Through the first eight months of FY 2024, revenue from delinquent wastewater payments totaled $31,000, which is sufficient to fund the program. Staff will continue to monitor the funding sources available for the program.

The W/WRAP is authorized by the EMID Board on an annual basis, and authorization to continue the program will be an action item on the agenda with the consideration of rates in June.

Rate Survey
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential wastewater bill with neighboring communities. The results of the survey are summarized in the Wastewater Rate Survey Comparison Chart that appears as Appendix A in Attachment 1. The average monthly bill among comparator agencies based upon a flat rate or 6 hundred cubic feet (hcf) of monthly winter water use is $117.71. The District’s average rate is $130.87 per month, or about 11% higher than the average.

Proposition 218 Notification
Since the EMID Board of Directors already held a public hearing and approved maximum wastewater rates for FY 2024-2025, the District is not required to hold a public hearing to approve the recommended 2% increase. While EMID Board will receive the complete Wastewater Fund budget at a later meeting, it is the opinion of District staff that conservative assumptions have been employed in the creation of the rate model. As such, staff recommends that the Board direct staff to implement the previously adopted 2% increase for FY 2024-2025. In the interest of transparency, Staff

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further recommends that information about the new Wastewater rates be included in the Proposition 218 notice that will be mailed for the Water Rate public hearing.

Recent case law and EMID experience have demonstrated that there are a number of advantages to adopting rate plans that set rates for multiple years, so it is anticipated that staff will bring a multi-year recommendation aligned with the water rate setting process for rate year 2025-2026 and beyond. Under state law, the District may adopt a rate plan that covers a maximum of five years.

CEQA
Not Applicable

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

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
ATTACHMENTS:

Attachment 1 –Bartle Wells Associates Wastewater Rate Study Update Results Memo dated March 1, 2024

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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 Wastewater Enterprise and to project wastewater rate adjustments for the next five-year period. BWA last conducted a rate study update in 2023. No public hearing was held for wastewater, as the adopted maximum wastewater rate of 10% was determined to be adequate and, in fact, was able to be reduced to 3% and still maintain the necessary revenue requirement.

Current and projected wastewater service rates are in the middle-high range compared to other agencies on the Peninsula. However, because water rates are comparatively very low, combined water and wastewater service rates are in the middle-low range compared to other agencies on the Peninsula.

Wastewater Enterprise Summary
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 the District are expanding the jointly owned WWTP at an estimated cost of $670 MM with $164.4 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.

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The wastewater enterprise revenue model is designed 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 year 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 had adequate financing capacity for projected debt issuances in the next several years and recommended spreading the remaining rate increases out over a longer period. Thus, the City Council reduced the 10% increase in FY 2024 to 3%. BWA recommends implementing the previously 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 FY 2026 through FY 2031.

Detailed wastewater rate calculations are shown in APPENDIX B.

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

Including the recommended increase, the District’s proposed monthly residential wastewater bill for FY 2025 is $133.49. Since it is unknown what the comparator agencies are proposing for FY 2025, the District compared its FY 2024 monthly residential wastewater bills to the FY 2024 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 $117.71 and the District’s rate is $130.87 per month, or about 11% more.

APPENDIX C shows how the combined water and wastewater bills compare to regional agencies based on FY 2024 rates. The average monthly combined water and wastewater bill for the region is $225.98. The District’s total combined water and wastewater bill is $209.35 per month, or about 7.4% less than the regional average.

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Wastewater Enterprise Fund
There are approximately 13,937 wastewater accounts serviced by the District. The majority of accounts are residential with the remainder consisting of commercial and institutional accounts as shown in Table 1.

The District has approximately $27,456,097 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 $2.7 million).

T a b l e 1
F o s t e r C i t y / E s t e r o M u n i c i p a l I m p r o v e m e n t D i s t r i c t W a s t e w a t e r S e r v i c e A c c o u n t s
D a t a a s o f : 0 2 / 0 1 / 2 4
N u m b e r o f A c c o u n t s
R e s i d e n t i a l
S i n g l e F a m i l y 4 , 5 3 6
T o w n h o u s e / D u p l e x 2 , 2 8 3
A p a r t m e n t / C o n d o m i n i u m ( P o o l s w / R e s t r o o m s ) 6 , 8 6 6 R e s i d e n t i a l T o t a l 1 3 , 6 8 5
C o m m e r c i a l
R e s t a u r a n t s 4 3
C o m m e r c i a l / H o t e l s / O f f i c e s / I n d u s t r i a l / L a u n d r o m a t s 1 7 3 C o m m e r c i a l T o t a l 2 1 6
I n s t i t u t i o n a l
I n s t i t u t i o n a l / S c h o o l s 3 6
I n s i t u t i o n a l T o t a l 3 6
T o t a l 1 3 , 9 3 7
S o u r c e : C o g n o s S e w e r C u s t o m e r C o u n t R e p o r t C u s t o m e r C l a s s

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Table 3 summarizes the current wastewater service rates.

Table 2
Foster City / Estero Municipal Improvement District
Wastewater Operating Fund Reserves
July 1, 2023
Fund Reserve Component Balance
Reserved for Maintenance & Operation $27,456,097
Total $27,456,097
operating and capital expenditures.

Note: Rate model only includes fund reserve components available to fund ongoing Source: City of Foster City/Estero Municipal Improvement District Staff Table 3
Foster City / Estero Municipal Improvement District
Current Wastewater Rates
Current
Fiscal Year Ending June 30 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)
Restaurants 23.78
Commercial/Hotels/Offices/Industrial/Laundromats 8.36
Institutional (rate per ccf of water use)
Institutional/Schools 5.50

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Table 4 summarizes the operating expenditures of the enterprise. Projected operating expenditures are anticipated to increase over the next five years by about 33%.

Table 4
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise O&M Projection
Revised
Budget
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
Employee Services $2,886,634 $3,039,154 $3,160,720 $3,287,149 $3,418,635 $3,555,380 4.0% Internal Services (from City) 1,318,932 1,557,041 1,595,967 1,635,866 1,676,763 1,718,682 2.5% Internal Services -ERF 342,955 462,234 473,790 485,635 497,776 510,220 2.5% Services & Supplies 733,550 901,950 924,499 947,611 971,301 995,584 2.5% EMID Share WWTP O&M 3,700,000 3,700,000 4,000,000 4,200,000 5,200,000 5,300,000 N/A Reallocation [2] 955,715 1,051,791 1,078,086 1,105,038 1,132,664 1,160,981 2.5% TOTAL O&M Expenditures $9,937,786 $10,712,170 $11,233,062 $11,661,299 $12,897,139 $13,240,847

7.8% 4.9% 3.8% 10.6% 2.7%
[1] Based on historical results
[2] Costs allocated to the Wastewater Enterprise from other departments based on the City's cost allocation study.

Annual %
Increase [1]Expenditures Five Year Projection

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Wastewater Financial Projections
Wastewater projections are shown in APPENDIX B.

Table 5 shows debt service estimates for the District’s share of WWTP costs. Annual debt service for the total debt issuances is estimated to amount to approximately $6 MM by FY 2026.

Table 5
City of Foster City / Estero Municipal Improvement District Debt Service
Debt Service FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 FYE 2032 FYE 2033 WIFIA Loan $0 $730,453 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 2019 Bonds 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 2,083,500 2023 SRF Loan/Bonds 0 134,332 1,259,604 1,259,573 1,259,540 1,259,508 1,259,475 1,259,443 1,259,410 1,259,376 Total Debt Service $2,085,000 $2,949,035 $5,999,361 $6,000,205 $5,999,297 $5,996,640 $5,997,107 $6,000,450 $5,996,666 $5,995,758

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

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

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

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

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

Medium/Commercial/ Residential - All
Domestic Strength Appliance Repair
Beauty Shops (hair cutting w/additional treatments)
Dry Cleaners
Nail Salons
Pet Groomers
Commercial Laundromats
Bars & Taverns

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Tasting Rooms
Hospitals - General, Convalescent & Veterinarian
Hotels, Motels, B&Bs, and Vacation Rentals
Offices - Business and Professional
Offices - Medical/Dental
Pools with Restrooms (Clubhouse)
Theaters
Car Washes
High Tech Medical Manufacturing
Light Manufacturing/Industrial
Gym or Health Club
Machine Shops
Service Stations, Garages, Auto Repair Shops
Mini Marts - W/O Dish Washer or Garbage Disposal
Mini Mart with Gas Pumps - W/O Dish Washer or Garbage Disposal Spa with Various Beauty Treatments

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

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

Note: Wastewater users who have Fats, Oils, and Grease (FOG) waste will be put into the High Strength user category

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Table 7 summarizes the assumed wastewater strength factors for the low, medium and high strength groups that are based on typical strengths provided in the SWRCB’s Revenue Program Guidelines. The strength factor for medium strength customers is equivalent to 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 LOW LOW-MEDIUM MEDIUM HIGH
Examples: Institutional Residential Restaurant
Bank Offices Bakery
Flow (gpd) 200 168 200 200
BOD1 (mg/l) 135 240 240 1000
TSS2 (mg/l) 100 240 240 800
Strength Factor 0.66 0.84 1.00 2.85
Strength Factor Formula SF=(Flow(gpd)/200)*(0.33+(0.34*BOD(mg/l)/240)+(0.33*TSS(mg/l)/240)) WW flows and strengths based on State Water Resources Control Board's Revenue Program Guidelines 1 "BOD" stands for Biochemical Oxygen Demand
2 "TSS" stands for Total Suspended Solids
Townhouse, Duplex,
Apartment, Condo

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Table 8 summarizes the mass-balance analysis for the City’s wastewater system and calculates the wastewater rates for each customer class. Single family residences are assumed to have an average daily (dry weather) flow of 200 gallons per day (gpd). 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 2.6 million gallons per day (mgd) and the measured flow at 2.4 mgd.

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Table 8
City of Foster City/Estero Municipal Improvement District Summary of Wastewater Users by Customer Class
FY 2024 Estimate
Customer Class EDU x Flow Calculated
EDUs1 ADWF Flow ADWF Flow BOD3 TSS4 Current
(gal/day) (gal/day) (mg/l) (mg/l) Rate
Residential
Single Family Residential 4,536 200 907,200 240 240 130.87 Townhouse/Duplex 2,283 168 383,544 240 240 109.93
Apartment/Condos 6,866 168 1,153,488 240 240 109.93
Subtotal 2,444,232
Use Estimated Calculated
Accounts (gal/day) Flow Factor ADWF Flow BOD3 TSS4 Current Commercial (gal/day) (mg/l) (mg/l) Rate
Low Strength 36 40,776 65% 26,504 135 100 5.50
Medium/Domestic Strength 173 212,049 52% 110,178 240 240 8.36 High Strength 43 53,890 70% 37,723 1000 800 23.78
Subtotal 306,715 174,406
Totals 2,618,638
Check Against Lowest Actual Monthly Avg. Day Flow (May 2014 from LS 59 Flow Log): 2,367,806 1 "EDU" stands for Equivalent Dwelling Unit
2 "ADWF" stands for Average Dry Weather Flow
3 "BOD" stands for Biochemical Oxygen Demand
4 "TSS" stands for Total Suspended Solids

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Low Income Discount
Currently Foster City has approximately 25 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 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.

The estimated maximum potential cost of a $15/month discount for 25 wastewater customers amounts to $4,500 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 a Proposition 218 notification.

Late penalties collected year to date for wastewater in FY 2024 amounted to $31,500, exceeding the cost of the program.

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APPENDIX A
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APPENDIX B
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Table 9City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Assumptions:Interest Earnings Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Revenue Increase from Growth 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37%Rate Adjustment 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Monthly Service Charge for Single Family $130.87 $133.49 $136.16 $138.88 $141.66 $144.49 $147.38 $150.33 $153.34 $156.41 $159.54 Beginning O&M Fund Balance $27,456,097 $25,321,200 $25,901,000 $23,425,600 $25,488,100 $26,884,700 $28,508,200 $30,264,400 $32,258,000 $34,405,300 $36,711,500 Operating RevenuesService Charges 20,792,268 21,284,000 21,788,000 22,304,000 22,832,000 23,372,000 23,925,000 24,491,000 25,070,000 25,663,000 26,270,000Connection Fees [1] 45,500 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000Interest Earnings [2] 549,122 506,000 518,000 469,000 510,000 538,000 570,000 605,000 645,000 688,000 734,000Other Revenue 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000Operating Revenue 21,387,890 21,841,000 22,357,000 22,824,000 23,393,000 23,961,000 24,546,000 25,147,000 25,766,000 26,402,000 27,055,000 Total Revenue 21,387,890 21,841,000 22,357,000 22,824,000 23,393,000 23,961,000 24,546,000 25,147,000 25,766,000 26,402,000 27,055,000 Operating ExpensesEmployee Services 2,886,634 3,039,154 3,160,720 3,287,149 3,418,635 3,555,380 3,697,595 3,845,499 3,999,319 4,159,292 4,325,664Internal Services (from City) 1,318,932 1,557,041 1,595,967 1,635,866 1,676,763 1,718,682 1,761,649 1,805,690 1,850,832 1,897,103 1,944,531Internal Services -ERF 342,955 462,234 473,790 485,635 497,776 510,220 522,976 536,050 549,451 563,187 577,267Services & Supplies 733,550 901,950 924,499 947,611 971,301 995,584 1,020,474 1,045,986 1,072,136 1,098,939 1,126,412EMID Share WWTP O&M 3,700,000 3,700,000 4,000,000 4,200,000 5,200,000 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 6,000,000Reallocation 955,715 1,051,791 1,078,086 1,105,038 1,132,664 1,160,981 1,190,006 1,219,756 1,250,250 1,281,506 1,313,544Operating Expenses 9,937,786 10,712,170 11,233,062 11,661,299 12,897,139 13,240,847 13,692,700 14,052,981 14,521,988 15,000,027 15,287,418 Operating Net Revenue 11,450,104 11,128,830 11,123,938 11,162,701 10,495,861 10,720,153 10,853,300 11,094,019 11,244,012 11,401,973 11,767,582 Capital ExpensesTransfer Out - District CIP 11,500,000 7,600,000 7,600,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000Capital Expenses 11,500,000 7,600,000 7,600,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 Annual Debt Service 2,085,000 2,949,035 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475Debt Service 2,085,000 2,949,035 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 Debt Coverage [3] 5.49 3.77 1.85 1.86 1.75 1.79 1.81 1.85 1.88 1.90 1.96 Total Expenditures 23,522,786 21,261,205 24,832,423 20,761,504 21,996,436 22,337,487 22,789,807 23,153,431 23,618,654 24,095,785 24,384,893 Revenues Less Total Expenditures (2,134,896) 579,795 (2,475,423) 2,062,496 1,396,564 1,623,513 1,756,193 1,993,569 2,147,346 2,306,215 2,670,107 Ending O&M Fund 25,321,201 25,900,995 23,425,577 25,488,096 26,884,664 28,508,213 30,264,393 32,257,969 34,405,346 36,711,515 39,381,607 Cash Fund Reserve Test: Minimum Fund Balance > 25% O&M ExpensesYear-end O&M Fund 25,321,201 25,900,995 23,425,577 25,488,096 26,884,664 28,508,213 30,264,393 32,257,969 34,405,346 36,711,515 39,381,60725% Operating Expenses 2,484,447 2,678,043 2,808,266 2,915,325 3,224,285 3,310,212 3,423,175 3,513,245 3,630,497 3,750,007 3,821,855# of Days O&M in Reserves 930 883 761 798 761 786 807 838 865 893 940 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] Minimum requirement debt service covereage requirement = 1.25x Five Year Projection Extended Year Projection

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Table 11
City of Foster City / Estero Municipal Improvement District Projected Wastewater Rate Impacts
Current
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
% Rate Increase
Single Family Residential Flat Monthly Flat $130.87 $133.49 $136.16 $138.88 $141.66 $144.49 $ Increase (Decrease) 2.62 2.67 2.72 2.78 2.83
% Increase (Decrease) 2.00% 2.00% 2.00% 2.00% 2.00%
Projected - Fiscal Year Ending June 30Rate Change Scenarios

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CHART C

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APPENDIX C
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DATE: March 25, 2024

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: Edmund Suen, Finance Director
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager
DEPARTMENT: Finance
SUBJECT: UPDATES TO MASTER FEES AND SERVICE CHARGES
SCHEDULE FOR FY 2024-2025

RECOMMENDATION
It is recommended that the City Council/EMID Board, by Minute Order, provide policy direction regarding changes to the Master Fees and Service Charges Schedule as part of the FY 2024-2025 budget.

EXECUTIVE SUMMARY
City/District staff is recommending changes to the Master Fees and Service Charges Schedule (“Schedule”). A 2.6% increase in most fees is recommended as cost recovery for increases in personnel costs and service and supply costs that support the provision of services. This increase is based on the December 2023 Consumer Price Index (CPI) for the San Francisco area.

In addition, the Community Development Department is proposing the following: 1) addition of new fees to recover cost of staff time for Alternate Method and Material Request (AMMR), processing new addressing requests, Permit extension requests, Temporary Certificate of Occupancy (TCO) request, fee for signage violations, and for construction plans revision reviews; 2) revision of Express Plan Check fee and Penalty

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Fee; 3) update the footnote for Deposit-based fees and add deposit amounts for subdivision mapping; and 4) establishment of a BMR compliance and monitoring fee schedule. The fee schedule would consist of an annual monitoring fee and compliance fees that comprises of penalties on a per property and/or per unit basis that would be assessed for non-cooperation with staff enforcement efforts or continued or repeated non-compliance.

The Parks and Recreation Department is proposing: 1) increase in Community Center Rental fees and Park reservation rates by 5%; 2) addition of new reservation fees for basketball courts and Community Garden; 3) addition of new material-based fees; 4) to temporarily remove Recreation Center rooms’ rental fees; and 5) to add temporary modular units to Facility reservations.

Furthermore, the Public Works Department is proposing to add: 1) a $1,000 deposit and actual cost associated with the review of Water Neutrality Ordinance Compliance; and 2) a deposit of $250 to the existing item “PWE -08 - PW Research” which is charged at actual cost.

There is also a separate report tonight seeking EMID Board’s approval of proposed water rate increases for Proposition 218 noticing.

BACKGROUND
As part of the annual budget process, the City Council/EMID Board reviews the Master Fees and Service Charges Schedule. The schedule includes all services and charges that are charged by the City/District in providing services to the community. Fees such as building permit fees, encroachment permits, inspections, fingerprinting, water meters, copying and duplication charges are examples of the type of fees charged to residents and businesses. The schedule is subject to a public hearing prior to adoption.

The City Council/EMID Board has historically reviewed the schedule as part of its annual Budget Study Session. Based on City Council/EMID Board direction, City/District staff will prepare the necessary staff report regarding changes to the Master Fees and Service Charges Schedule and publish the proper notices for a public hearing to be held at the April 15, 2024 regular meeting. At the conclusion of the public hearing, the City Council/EMID Board then adopts the Master Fees and Service Charges Schedule, which goes into effect on July 1, 2024. In accordance with State law, all service-related fees are to be based upon the cost of providing such services.

The basis for many of the fees in the Schedule is from the cost allocation plan and fee study that was performed in 2023 and adjusted annually for normal cost escalation and inflation incurred by the City/District.

ANALYSIS
The proposed Master Fees and Service Charges Schedule for FY 2024-2025 is provided in Attachment 1 and includes proposed staff billing rates for fees that are calculated on a time and materials basis.

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Overall Increases
The recommendation is that most fees be raised by 2.6% based on the higher costs of providing services by the City/District; which is driven primarily from increased personnel costs, as well as the cost of supplies and services that support the delivery of those services to the community. This rate increase of 2.6% is based on the December 2023 Consumer Price Index (CPI) for the San Francisco area. Building fees are subject to annual adjustment to account for annual inflation based on prior year annual % (i.e.

FY 24-25 increase will be based on 2023 Annual %) construction cost data from the Building Cost Index (BCI) published by the California Department of General Services, Real Estate Services Division.

Utility Rates – Water and Wastewater Services
In a separate report this evening, the EMID Board will review a Water and Wastewater Rate Analysis. Based on the Board’s direction for that item, staff will proceed with a Proposition 218 notice (minimum 45 days in advance of a public hearing) of the recommended rates for a June 3, 2024 public hearing.

Community Development Department Fees
In addition to the 2.6% general increase for most fees related to Planning and 9.6% for fees related to Building, the Community Development Department is proposing the following the following revisions to master fee schedule:
•Building division:
oaddition of new building permit fees to recover cost of staff time for Alternate Method and Material Request (AMMR), processing new addressing requests, Permit extension requests, Temporary Certificate of Occupancy (TCO) request, and for construction plans revision reviews; and orevision of Express Plan Check fee and Penalty Fee for work without permits.
•Planning division:
oadding deposit amounts for Subdivision Map fees; and
oadding fee for signage violations.
•Affordable Housing:
oMonitoring fees; and
oCompliance fees
Note that revenues from BMR Compliance and Monitoring Fees would be allocated to Affordable Housing Funds 122 and 124. A detailed explanation of each of these new fees is provided in Attachment 2.

Parks and Recreation Department Fees

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The Parks and Recreation Department is proposing: 1) increase in Community Center Rental Fees and Park reservation rates by 5%; 2) addition of new reservation fees for basketball courts and Community Garden; 3) addition of new material-based fees at various facility rentals; 4) to temporarily remove Recreation Center rooms’ rental; and 5) to add temporary modular units to Facility reservations. These adjustments are presented in Attachment 3.

Public Works Department Fees
In addition to the 2.6% general increase for most fees, the Public Works department is proposing to add: 1) a $1,000 deposit and actual cost associated with the review of Water Neutrality Ordinance Compliance; and 2) and a deposit of $250 to the existing item “PWE -08 - PW Research” which is charged at actual cost.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
If the revised Master Fees and Service Charges Schedule is adopted on April 15, 2024, there will be a slight positive fiscal impact in permit/fee revenues from the proposed changes. However, given that most of these fee increases will allow the City to recover costs for staff time and resources, the net fiscal impact may be negligible.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability

ATTACHMENTS
Attachment 1 – Proposed Master Fees and Service Charges Schedule for FY 2024- 2025
Attachment 2 – Community Development Recommended Changes to its Fees and Charges
Attachment 3 – Parks and Recreation Recommended Changes to its Fees and Charges
Attachment 4 – Public Works Recommended Changes to its Fees and Charges

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REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
Community Development
CDB-01 Plan Checking Fees
1st Plan Check 70% of building fee 70% of building fee
2nd Plan Check No additional cost No additional cost
3rd and following Actual Cost Actual Cost
Express Plan Check $161 Additional 50% of regular plan checking fee except for minor projects like ADUs, JADUs, solar, and electrical charging stations CDB-02 Building Permit Fees (Based on valuation)
A) $1 to 500 $58.82 $64.34
B) $501 to 2,000 $58.82 for the first $500,
+ $7.41 for each additional $100 or
fraction thereof, to and including $2,000
$64.34 for the first $500,
+ $8.10 for each additional $100 or
fraction thereof, to and including $2,000
C) $2,001 to 25,000 $175.43 for the first $2,000,
+ $35.36 for each additional $1,000 or
fraction thereof, to and including $25,000
$191.92 for the first $2,000,
+ $38.68 for each additional $1,000 or
fraction thereof, to and including $25,000
D) $25,001 to 50,000 $993.83 for the first $25,000,
+ $24.61 for each additional $1,000 or
fraction thereof, to and including $50,000
$1,087.25 for the first $25,000,
+ $26.92 for each additional $1,000 or
fraction thereof, to and including $50,000
E) $50,001 to 100,000 $1,614.14 for the first $50,000,
+ $17.48 for each additional $1,000 or
fraction thereof, to and including $100,000
$1,765.86 for the first $50,000,
+ $19.12 for each additional $1,000 or
fraction thereof, to and including $100,000
F) $100,001 to 500,000 $2,507.51 for the first $100,000, + $13.74 for each additional $1,000 or
fraction thereof, to and including $500,000
$2,743.21 for the first $100,000,
+ $15.03 for each additional $1,000 or
fraction thereof, to and including $500,000
G) $500,001 to 1,000,000 $8,123.83 for the first $500,000, + $11.84 for each additional $1,000 or
fraction thereof, to and including $1,000,000
$8,887.47 for the first $500,000,
+ $12.95 for each additional $1,000 or
fraction thereof, to and including $1,000,000
H) $1,000,000+ and up $14,130.39 for the first $1,000,000, + $7.01 for each additional $1,000 or fraction thereof
$15,458.64 for the first $1,000,000,
+ $7.66 for each additional $1,000 or fraction thereof
I) Solar (Photovoltaic) Panels Exempt from Building Permit Fees. Exempt from Building Permit Fees.

J) Kitchen Remodel Building Permit Fee - Flat Rate $438.89 $480.14 K) Single Bathroom Remodel Building Permit Fee Flat Rate $351.61 $384.66 CDB-03 General Plan and Title 15 Building and Title 17 Zoning Ordinance Maintenance Fees 1) $1 to $500 No Fee No Fee
2) Accessory Dwelling Units No Fee No Fee
3) Affordable Housing Projects that are 100% income restricted No Fee No Fee 4) $501 and up 0.50% of the application value above $500 0.50% of the application value above $500 City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25

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1. Plumbing Permit Issuance Fee $102.86 $112.52

2. Plumbing Supplemental Permit Issuance Fee (per application) $102.86 $112.52

3. For each trap $26.35 $28.82

4. For each building sewer system $56.70 $62.02

5. For each building water system $26.35 $28.82

6. For each rainwater system per drain $26.35 $28.82

7. For each water heater or vent $26.35 $28.82

8. For each gas piping system (1-5 outlets) $4.15 $4.54

9. For each gas outlet over 5 (per outlet) $4.15 $4.54

10. For each interceptor or grease trap $26.35 $28.82

11. For each repair to a water system $26.35 $28.82

12. For each repair to a drain/vent $26.35 $28.82

13. For each check/backflow (2" or smaller) $26.35 $28.82

14. For each check/backflow (over 2") $56.70 $62.02

15. For each vacuum breaker (1-5) $18.45 $20.18

16. For each vacuum breaker over 5 $4.15 $4.54

17. For fire sprinkler systems $14.65 $16.02

18. For medical gas piping system $190.40 $208.29

19. For each medical gas outlet $18.45 $20.18

20. For graywater system $151.15 $165.35

21. For Plumbing per valuation $13.06 per each $1,000 in valuation or fraction thereof$14.28 per each $1,000 in valuation or fraction thereof CDB-05 Mechanical Permit Fees
Per Unit Fee Schedule (Mechanical)

1. Mechanical Permit Issuance Fee $102.86 $112.52

2. Mechanical Supplement Permit Issuance Fee (per application) $102.86 $112.52

3. For each furnace/heat pump to 100,000 BTU $56.10 $61.37

4. For each furnace/heat pump over 100,000 BTU $68.80 $75.26

5. For each floor furnace $56.10 $61.37

6. For each suspended or wall furnace $56.10 $61.37

7. For each appliance vent $26.95 $29.48

8. For repair to a heating or cooling appliance. $50.95 $55.73

9. For each boiler/comp. to 100,000 BTU (3hp) $55.40 $60.60

10. For each boiler/comp. over 100,000 BTU (15hp) $103.25 $112.95

11. For each boiler/comp. over 500,000 BTU (30hp) $140.75 $153.98

12. For each boiler/comp. over 1,000,000 BTU (50hp) $156.09 $170.76

13. For each boiler/comp. over 1,750,000 BTU (over 50 hp) $156.09 $170.76

14. For each AC unit up to 10,000 CFM $40.00 $43.76

15. For each AC unit over 10,000 CFM $68.45 $74.88

16. For each single duct vent fan $26.95 $29.48

17. For each ventilation system $40.00 $43.76

18. For each hood $40.00 $43.76

19. For each domestic type incinerator $68.80 $75.26

20. For each commercial type incinerator $55.00 $60.17

21. For any other appliance $40.00 $43.76

22. Fireplace Inserts $39.25 $42.93

23. Freestanding Stove $39.25 $42.93

24. For Mechanical per valuation $13.06 per each $1,000 in valuation or fraction thereof$14.28 per each $1,000 in valuation or fraction thereof

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

175

1. Permit Issuance Fee $102.86 $112.52

2. Supplement Permit Issuance Fee $102.86 $112.52

3. For each receptacle/switch/fixture $2.68 $2.93

4. For each circuit $2.68 $2.93

5. For each fixed electrical appliance $11.34 $12.40

6. For each new service to 200 amps $70.05 $76.63

7. For each new service 200 to 1,000 amps $142.10 $155.45

8. For each service upgrade 0 to 1,000 amps $94.80 $103.71

9. For each service upgrade over 1,000 amps $156.09 $170.76

10. For each additional meter $1.56 $1.70

11. For each temporary power pole $56.70 $62.02

12. For each circuit for a sign $56.70 $62.02

13. For each sub-panel $41.70 $45.61

14. For each pool/spa/hot-tub $56.75 $62.08

15. For each electric water heater $11.30 $12.36

16. For each electric heater $11.30 $12.36

17. For each motor 0 to 1 HP $11.30 $12.36

18. For each motor 2 to 10 HP $28.20 $30.85

19. For each motor 11 to 50 HP $56.75 $62.08

20. For each motor 51 to 100 HP $113.60 $124.27

21. For low voltage/wireless per $100 val. $11.30 $12.36

22. For each busway $11.30 $12.36

23. For each miscellaneous $28.20 $30.85

24. For Electrical per val. $13.06 per each $1,000 in valuation or fraction thereof $14.28 per each $1,000 in valuation or fraction thereof CDB-07 Penalty Fee - Building Division
a. R-1 $344 processing fee, + 200% of the permit fee
permit applied* within 10 days - $376 processing fee
permit applied* 11-30 days-$376 processing fee + 100% permit fee permit applied* after 30 days-$376 processing fee + 200% permit fee b. Others $688 processing fee, + 200% of the permit fee permit applied* within 10 days - $753 processing fee
permit applied* 10-30 days - $753 processing fee + 100% permit fee permit applied* after 30 days - $753 processing fee + 200% permit fee CDB-08 Digitizing Processing Fee $4.04/Plan Sheet $4.41/Plan Sheet $2.04 /Document Sheet (Less than 8 1/2" x 14") $2.23 /Document Sheet (Less than 8 1/2" x 14") CDB-09 Administrative Fee $14.54 Min. (or Actual Cost*) $15.90 Min. (or Actual Cost*) CDB-10 Technology Fee $4.80 per application + $.80 per each $1,000 in valuation or fraction thereof
$5.25 per application + $.87 per each $1,000 in valuation or fraction thereofCDB-11 Permit Processing Fee $53.82 $58.87
CDB-12 (NEW) Alternate Method and Material Request (AMMR) N/A Actal Cost CDB-13 (NEW) New Address N/A Actal Cost
CDB-14 (NEW) Permit Extension N/A $156.00
CDB-15 (NEW) Temporary Certificate of Occupancy (TCO) Request N/A Actal Cost CDB-16 (NEW) Revision to approved construction plans Reviews N/A Actal Cost

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

176

1. Reinspection Fee Actual Cost Actual Cost

2. After hours inspections / inspections outside of normal hours Actual overtime cost, including overhead, 4 hour minimum
Actual overtime cost, including overhead,
4 hour minimum

3. Strong Motion Instrumentation and Seismic Hazard Mapping Fee Per state of California Department of Conservation latest edition 2004 fees:

Category 1 Construction (all Residential under 3 stories): $13.00 per $100,000 permit valuation;
Category 2 Construction (Residential over 3 stories, all Commercial):
$28.00 per $100,000 permit valuation
Per state of California Department of Conservation latest edition 2004 fees:

Category 1 Construction (all Residential under 3 stories): $13.00 per $100,000 permit valuation;
Category 2 Construction (Residential over 3 stories, all Commercial): $28.00 per $100,000 permit valuation
Required deposit: $50.00 per ton of debris estimated to be generated by project.

Required deposit: $50.00 per ton of debris estimated to be generated by project.

All Projects: If calculation is less than $1,000, then minimum deposit is $1,000.

Residential Projects: If calculation exceeds $10,000, then $10,000 is the maximum deposit.

Commercial Projects: If calculation exceeds $30,000, then $30,000 is the maximum deposit.

5. Request for author's release of plans. $36.92 base fee $40.39 base fee

6. Building Standards Administration Special Revolving Fund (Green Fee) Per current state of California-State and Consumer Services Agency- Building Standards Commission valuation schedule
Per current state of California-State and Consumer Services Agency-Building Standards Commission valuation schedule

7. C&D Application Fee
a. C&D Application Fee - Roof $145.53 $159.20
b. C&D Application Fee - Others $407.85 $446.18
Note for Building Fees
CDH-01 (NEW) BMR Housing Fees - Monitoring Fees (2) N/A Annual monitoring fee of $72 per unit per year for the term of affordability with reasonable periodic increases for BMR units of affordable housing development agreements starting 7/1/2024.

CDH-02(NEW) BMR Housing Fees -Compliance Fees (2) N/A $500 per incident (approximately two hours of staff time), plus the actual cost of City Attorney time.

4. Construction and Demolition Debris Recycling Deposit. Note: A pro-rata deposit refund is made for diversion rates less than required by ordinance.

These fees are subject to annual adjustment to account for annual inflation based on prior year annual % (i.e. FY 24-25 increase will be based on 2023 Annual %) construction cost data from the Building Cost Index (BCI) published by the California Department of General Services, Real Estate Services Division.

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

177

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
CDP-01 Preliminary Project Review Fees
a. City Council/Planning Commission Review Actual Cost* Subject to a minimum $2,000 Deposit at time of filing Actual Cost* Subject to a minimum $2,000 Deposit at time of filing b. Staff Review Actual Cost* Subject to a minimum $1,000 Deposit at time of filing Actual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-02 General Plan Amendment Fees Actual Cost* Subject to a minimum $5,000 Deposit at time of filing Actual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-03 Variance Fees Actual Cost* Subject to a minimum $2,000 Deposit at time of filing Actual Cost* Subject to a minimum $2,000 Deposit at time of filing CDP-04 Zoning Text/Map Amendment Fees Actual Cost* Subject to a minimum $5,000 Deposit at time of filing Actual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-05 Use Permit Modification Fees
a. Administrative Minor Use Permit Modification (e.g. paint change, landscape modifications, prototype amendments and other improvements per Section 17.06.030 of Title 17 Zoning of Foster City Municipal Code)
Actual Cost* Subject to a minimum $500 Deposit at time of filing Actual Cost* Subject to a minimum $500 Deposit at time of filing b. Administrative Major Use Permit Modification (e.g. Façade and site improvements) Actual Cost* Subject to a minimum $3,000 Deposit at time of filing Actual Cost* Subject to a minimum $3,000 Deposit at time of filing c. Planning Commission/City Council Use Permit Modification (e.g. Use Permit list, facade upgrades to existing commercial/office buildings)
Actual Cost* Subject to a minimum $5,000 Deposit at time of filing Actual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-06 Use Permit Fees
a. Administrative Use Permit (e.g. changes to existing wireless facility) Actual Cost* Subject to a minimum $750 Deposit at time of filing Actual Cost* Subject to a minimum $750 Deposit at time of filing b. Planning Commission/City Council Use Permit (e.g. Residential Additions to Waterfront properties, Conditional Use Permits, new wireless facility) Actual Cost* Subject to a minimum $5,000 Deposit at time of filing Actual Cost* Subject to a minimum $5,000 Deposit at time of filing c. Use Permit accompanying Specific Development Plan per Section 17.36.050 Title 17 Zoning of Foster City Municipal Code
Actual Cost* Subject to a minimum $5,000 Deposit at time of filing Actual Cost* Subject to a minimum $5,000 Deposit at time of filing d. Density Bonus Fees per Section 17.86.040 of Title 17 Zoning of Foster City Municipal Code
Actual Cost* Subject to a minimum $500 Deposit at time of filing Actual Cost* Subject to a minimum $500 Deposit at time of filing CDP-07 Architectural Review Fees (Excluding Solar Panels, which are exempt) a. Administrative Minor Architectural Review (e.g. windows, decks, fences, front yard paving, skylights, accessory structures)
Actual Cost* Subject to a minimum $750 Deposit at time of filing Actual Cost* Subject to a minimum $750 Deposit at time of filing b. Administrative Major Architectural Review (e.g. additions to non-water front homes or residential additions less than 400 SF)
Actual Cost* Subject to a minimum $2,000 Deposit at time of filing Actual Cost* Subject to a minimum $2,000 Deposit at time of filing c. Planning Commission Architectural Review per Section 2.28.100 of Title 2 of the Foster City Municipal Code
Actual Cost* Subject to a minimum $5,000 deposit at time of filing Actual Cost* Subject to a minimum $5,000 deposit at time of filing CDP-08 Sign Review (Note 1)
a. Administrative Sign Permit $342.65 $351.55
b. Planning Commission Review/Sign Use Permit Actual Cost* Subject to a minimum $1,500 Deposit at time of filing Actual Cost* Subject to a minimum $1,500 Deposit at time of filing c. Temporary/Promotional/Public Convenience Sign Review $114.15 $117.11

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

178

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
CDP-08 B (NEW) Signage violations (each day in which an illegal condition continues is a single violation and each subsequent day such illegal condition continues is a new and separate offense) First Violation N/A Not exceeding one hundred dollars
Second violation of the same provision within one year N/A Not exceeding $200 for a second violation of the same provision within one year
Third or subsequent violation of the same provision within one year N/A Not exceeding $500 for a third or subsequent violation of the same provision within one year
CDP-09 Appeal Fees
a. Appeal by Resident / Applicant Actual Cost* Subject to a minimum $500 Deposit at time of filing Actual Cost* Subject to a minimum $500 Deposit at time of filing b. Appeal by Non-Resident / Non-Applicant Actual Cost* Subject to a minimum $1,000 Deposit at time of filing Actual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-10 Request for Planning Commission Interpretation Fees Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-11 Environmental Assessment Fees Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-12 Environmental Impact Report Fees Actual Cost* Subject to a minimum $10,000 Deposit at time of filingActual Cost* Subject to a minimum $10,000 Deposit at time of filing CDP-13 Zoning Compliance Letter Actual cost* Subject to a minimum $500 initial depositActual cost* Subject to a minimum $500 initial deposit CDP-14 Development Agreement Actual cost* Subject to a minimum $5,000 initial depositActual cost* Subject to a minimum $5,000 initial deposit CDP-15 Disposition and Development Agreement Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit CDP-16 Owner Participation Agreement Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit CDP-17 Subdivision Map Fees
a. Tentative Subdivision Map Fees $810 (or Actual Cost*) $831 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
b. Tentative Parcel Map Fees $810 (or Actual Cost*) $831 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
c. Tentative Subdivision or Parcel Map Revision Fees $810 (or Actual Cost*) $831 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
d. Tentative Subdivision or Parcel Map Extension Fees $810 (or Actual Cost*) $831 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
e. Lot Line Adjustment Fee $476 (or Actual Cost*) $488 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
f. Third Party Reviews (NEW) N/A Actual cost* Subject to a minimum $5,000 initial deposit CDP-18 Temporary Use Permit
- Minor Events/Use (as determined by the Director of Community Development Services) including shopping center promotional events; outdoor sales by individual stores within shopping centers; parking lot sales/fairs; outdoor exhibits or open displays; special small scale events sponsored by religious institutions or their supporting clubs, schools or school organizations and clubs or civic groups and clubs Exempt Exempt
- Major Events/Uses (as determined by the Community Development Director) including commercial operations by other than civic, school or religious organizations, clubs and institutions
$286 (or Actual Cost*) $293.43 (or Actual Cost*)

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

179

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
CDP-19 Code Enforcement
a. 1st Inspection and/or 1st Letter 0 $0.00
b. 2nd Inspection and/or 2nd Letter, and each additional inspection / letter thereafter$240.00, plus actual cost of City Attorney time, until compliance is achieved and when staff is able to recover the associated costs. $246.24, plus actual cost of City Attorney time, until compliance is achieved and when staff is able to recover the associated costs.

CDP-20 Penalty Fee - Planning Division (per Section 17.06.175 of Title 17 of the Municipal Code) a. R-1 $333.00 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
$341.65 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
b. Others $779.05 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
$799.30 penalty processing fee; Deposit of twice the standard time nd materials costs, against which 200% of the actual processing fees will be applied.

CDP-21 Photography / Filming Temporary Use Permit Processing Fee $374.58 $384.31 CDP-22 Interdepartmental Evaluation Committee Review of Proposals by Persons, Businesses and Organizations Located Outside of Foster City (Excluding Land Use and Photography / Filming Temporary Use Permit see S-122 above) $354.00 $363.20
CDP-23 Annual Wireless Facilities Site License (Per Site) $270.00 Per License Agreement Note: 1
Note: 2
FOOTNOTE:

EIR and other technical consultant contracts for a project shall be paid in full by the applicant.

For work requiring an Outside Consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration.

When the account balance goes negative, the request to replenish funds shall be paid in full by the applicant within five (5) business days. If the payment is not paid in full, the project will be put on hold.

The penalty fee for sign installed prior to obtaining a sign permit shall be double the normal fee. Signs erected by nonprofit and community interest groups, senior clubs and organizations deemed "similar" by the Community Development Director shall be exempt from the payment of sign permit application fees. •Deposit-based fees:

Deposit-based application fees are identified as “Actual Cost* Subject to a minimum Deposit at time of filing” under the applicable fee(s). The planning staff draws against these deposited funds at the staff hourly rates adopted by the City Council for actual time spent on the review of the application. The Applicant and/or Property Owner are responsible for any supplemental deposits necessary to cover any costs which were not covered by the initial deposit. If there are funds remaining in the Deposit account at the end of the review of the application, the funds are refunded to the Applicant and/or Property Owner. The deposit amount in the fee schedule depends on whether the specific planning action warrants staff-level approval (administrative) or approval from Planning Commission/City Council and ranges from $500 to $10,000.

Proposals designed and located in strict conformance with approved residential development design prototypical guidelines for property improvements in the specific subdivision shall be charged 1/2 of the usual fee for such improvements.

Initial fees paid at the time of project submittal for all project categories without deposit are considered minimum fees which are not refundable. Initial fees paid for project categories with deposits may be refunded in part, depending upon the amount of staff time and reimbursable expenditures expended on the project as determined by the Director of Community Development. "Actual Cost" is charged against the required deposit.
* "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" billing begins after the initial fee payment amount is exceeded by direct and/or indirect costs.

All the fees are subject to annual adjustment to account for annual inflation based on the prior year annual percentage (%). Upon approval, these new and revised fees will be in effect in 60 days.

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

180

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25

PUBLIC WORKS
PW-01 Subdivision Fees
Public Works Plan Review and Inspection Fee
a. Common area improvements in planned unit developments, including but not limited to recreational facilities (other than those covered by building fees) landscaping and irrigation, underground structures and utilities, curb and gutter, paving, sidewalks and other walkways and lighting.

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency
b. Improvements in commercial and industrial developments, including but not limited to landscaping, and irrigation, underground structures and utilities, curb and gutter, paving, sidewalks and other walkways and lighting

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency
PW-02 Minor Land Division Fees $150.00 Application Fee plus Actual Cost* $153.90 Application Fee plus Actual Cost* (Requires a deposit of 6% of the estimated construction cost with a $7,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
(Requires a deposit of 6% of the estimated construction cost with a $7,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
PW-03 Transportation Permit Per CA Vehicle Code 35795 - $16.00 per trip or $90.00 annual permitPer CA Vehicle Code 35795 - $16.00 per trip or $90.00 annual permit
PWE-01 Encroachment Permit/Non-Utility $200.00 Application Fee plus Actual Cost* $205.20 Application Fee plus Actual Cost* (Requires a deposit of 5% of the estimated construction cost with a $1,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
(Requires a deposit of 5% of the estimated construction cost with a $1,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
PWE-02 Encroachment Permit/Utility $400.00 Application Fee plus Actual Cost* $410.40 Application Fee plus Actual Cost* PWE-03 Encroachment Permit/Utility (Renewal Fee) 15% of Original Permit Fee 15% of Original Permit Fee PWE-04 Encroachment Permit/Temporary placement of a debris box $65.00 $66.60 PWE-05 Work Done Without Encroachment Permit Two (2) times Application Fee plus Actual Cost* Two (2) times Application Fee plus Actual Cost* PWE-06 Encroachment Permit/Banner $200.00 Application Fee plus $750.00 required deposit $205.20 Application Fee plus $750.00 required deposit PWE-07 Business Stormwater Inspection Fee $150/inspection with Business License Renewal $153.90/inspection with Business License Renewal PWE-08 PW Research Actual Cost Actual cost* Subject to a minimum $250 initial deposit FOOTNOTE: * "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" is charged against the required deposit.

For work requiring an outside consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration.

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

181

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
POLICE
PD-01 Parking Enforcement Per attached Parking Violations Fine Schedule A, plus $3.00 State parking penalty assessment
Per attached Parking Violations Fine Schedule A, plus $3.00 State parking penalty assessment
PD-02 Vehicle Code Enforcement Per Current CA State Court Approved Bail SchedulePer Current CA State Court Approved Bail Schedule PD-03 Abandoned Vehicle
a. Mark $0.00 $0.00
b. Tow $90.00 $92.34
PD-04 Police Security Alarm Response - Standard Response 1st False Alarm $0.00 $0.00
2nd False Alarm $65.82 $67.53
3rd Alarm $135.11 $138.62
4th Alarm $135.11 $138.62
5th Alarm $277.16 $284.36
6th and 7th Alarm $277.16 $284.36
8th Alarm and thereafter $342.71 each $351.62 each
PD-05 Police Security Alarm Response - High Risk Response 1st False Alarm $0.00 $0.00
2nd False Alarm $811.50 $832.60
3rd False Alarm $973.80 $999.11
4th False Alarm $1,137.15 $1,166.71
5th False Alarm $1,299.45 $1,333.23
6th False Alarm $1,461.75 $1,499.75
7th False Alarm $1,625.15 $1,667.40
8th Alarm and thereafter $1,787.40 each $1,833.87
PD-06 Fingerprinting $44.16/per card $45.30/per card
PD-07 Report copying (including reports for Property Damage, Minor Accident or Injury Accident) a. 1-2 Pages $4.74 $4.86
b. 3-9 Pages $5.31 $5.44
c. 10+ pages $6.58 $6.75
PD-08 DUI Emergency Cost Recovery Government Code-Emergency Response Cost reimbursement up to Government Code-Emergency Response Cost reimbursement up to PD-09 Solicitor Review
Non-Profit $76.52 $78.50
For-Profit (Initial Review) $229.56 $235.52
For-Profit (Renewal) $76.52 $78.50
PD-10 Enforcement Vehicle Tow $138.58 $142.18
PD-11 Booking Fee Per Current San Mateo County Charges Per Current San Mateo County Charges PD-12 Local Records Check $34.60 $35.49
PD-13 Court Ordered Record Sealing $103.32 $106.00
PD-14 Records check processing Federal / State actual charges Federal / State actual charges PD-15 Concealed Weapon Permit Processing (non-refundable) $268.35 $275.32 PD-16 Planning Application Review and Inspection Services - Police Actual Costs * Actual Costs * PD-17 Video/Audio Duplication $38.00 $38.98
PD-18 Vehicle Repossession Fee -Per California Vehicle Code $20.00 $20.00 FOOTNOTE: "Actual cost" is the time and materials, including all direct and indirect overhead costs.

FIRE
Per attached San Mateo Consolidated Fire Fees - To Be Published/Updated in Fall Published independently Fall 2023 Published independently Fall 2024

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

182

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25

PARKS & RECREATION
PR-01 Adult Special Interest Class Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-02 Youth Special Interest Class Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-03 Day Camp Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-04 Pre-School Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-05 City Adult Sports Program Per current City Sports Package (NOTE 3) Per current City The Guide (NOTE 3) PR-06 Private Youth/Adult Sports Coordination & Field Maintenance Remove (See PR-17) Classification A Refer to Municipal Code 12.16.090 for Classification Remove (See PR-17) Classification B $ 0.00 Remove (See PR-17)
Classification C $16.45 per hour Remove (See PR-17)
Classification D $16.45 per hour Remove (See PR-17)
Classification E $16.45 per hour Remove (See PR-17)
PR-07 City Youth Sports Organization Coordination & Field Maintenance $0.00 Remove (See PR-17) PR-08 Summer Parks Youth Program Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-09 Trips and Tours Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-10 Recreation Building Rental Per attached Schedule B Per attached Schedule B PR-11 Elementary School Recreation Rental Per attached Schedule B Per attached Schedule B PR-12 Senior Citizen Programs Per current City The Guide (NOTE 3) Per current City The Guide (NOTE 3) PR-13 Library Building Maintenance Per Lease Agreement Per Lease Agreement PR-14 Parks & Recreation Concessions Per Contract Per Contract PR-15 Library Community Center Rental Per attached Schedule B Per attached Schedule B PR-16 Park Fees Per attached Schedule B Per attached Schedule B PR-17 Sports Field Rental Per attached Schedule B Per attached Schedule B PR-18 Special Event Fees Per attached Schedule B Per attached Schedule B PR-19 Council Chambers Rental / Video Production Services Per attached Schedule B Per attached Schedule B The Recreation Division sets activity fees according to :

1. Competing fees in other cities and colleges.

2. Session length and length of class time per meeting.

3. Class enrollment statistics regarding an activity and the fees that were charged for that activity.

4. Commensurate with instructor's qualification and experience.

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

183

REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25

PUBLIC WORKS
PWWA-01 Water Service
a. 5/8" X 3/4" $27.60 Prop 218
b. 3/4" $27.60 Prop 218
c. 1" $46.00 Prop 218
d. 1 1/2" $110.40 Prop 218
e. 2" $147.20 Prop 218
f. 3" $322.00 Prop 218
g. 4" $579.60 Prop 218
h. 6" $1,288.00 Prop 218
i. 8" $2,208.00 Prop 218
j. Water consumption rates - per hundred cubic feet (ccf) of water consumed 1) Base Consumption Rate $6.47 Prop 218
2) Single Family Residential Consumption Rate
a) 0-20 ccf bi-monthly $6.36 Prop 218
b) Over 20 ccf bi-monthly $7.01 Prop 218
3) Multi-Family Residential Consumption Rate
a) 0 to 10 ccf per living unit bi-monthly $6.36 Prop 218 b) Over 10 ccf per living unit bi-monthly $7.09 Prop 218 4) Irrigation Customer Consumption Rate
a) Up to 100% of Annual Water Budget $6.36 Prop 218
b) Over 100% of Annual Water Budget $7.22 Prop 218
5) Commercial and Private Fire Line Customer Consumption Rate $6.47 Prop 218 a. Private fire protection services - water availability charge (if a meter is not present, the size of the fire service line will be used as a basis for the charge):
1) 3/4" meter $38.64 Prop 218
2) 1" meter $38.64 Prop 218
3) 1 1/2" meter $38.64 Prop 218
4) 2" meter $51.61 Prop 218
5) 3" meter $112.61 Prop 218
6) 4" meter $202.86 Prop 218
7) 6" meter $450.71 Prop 218
8) 8" meter $772.80 Prop 218
PWWA-02 Water Turn on / Off (Regular Hours: Business Day-8 AM to 3:30 PM. Non-Regular Hours: All other hours that is not regular hours)
a. Account Set Up Fees $43.40 $44.50
1) RUSH Service-on/off within 90 minutes within Regular Hours $54.00 $55.40 2) RUSH Service-on/off within 90 minutes during Non-Regular hours $108.40 $111.20 b. Reconnection charge after disconnection for nonpayment:
1) Regular hours $54.00 $55.40
2) Non-Regular Hours $108.40 $111.20
c. Reconnection charge after voluntary disconnection:
1) Regular hours $54.00 $55.40
2) Non-Regular Hours $108.40 $111.22
d. Customer initiated Turn-on/Turn off (per incident)
1) Regular hours $54.00 $55.40
2) Non-Regular Hours $108.40 $111.22

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REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
PWWA-03 Water Meter Test $396.00 deposit is required $406.30 deposit is required a. When a customer requests the test and the meter is found to be defective $0.00 (deposit will be refunded) $0.00 (deposit will be refunded) b. When a customer requests the test and the meter is found NOT to be defective $198/hour (2 Hours minimum) $203/hour (2 Hours minimum) PWWA-04 Water Leak Investigation $198 deposit is required $203 deposit is required a. When a customer requests a water leak investigation, and the leak is found to be on the City side of the water meter
$0.00 (deposit will be refunded) $0.00 (deposit will be refunded) b. When a customer requests a water leak investigation, and the leak is found to be on the Private Property side of the water meter
$198/hour (30 minutes minimum) $203/hour (30 minutes minimum) PWWA-05 Water Meters (including installation)
a. 3/4" Actual Meter Cost + $198 / hour installation fee (1 hour minimum)Actual Meter Cost + $203 / hour installation fee (1 hour minimum) b. 1" Actual Meter Cost + $198 / hour installation fee (1 hour minimum)Actual Meter Cost + $203 / hour installation fee (1 hour minimum) c. 1-1/2" Actual Meter Cost + $198 / hour installation fee (1 hour minimum)Actual Meter Cost + $203 / hour installation fee (1 hour minimum) d. 2" Actual Meter Cost + $396/ hour installation fee (1 hour minimum)Actual Meter Cost + $406/ hour installation fee (1 hour minimum) e. 3" Actual Meter Cost + $396/ hour installation fee (1 hour minimum)Actual Meter Cost + $406/ hour installation fee (1 hour minimum) f. 4" Actual Meter Cost + $396/ hour installation fee (1 hour minimum)Actual Meter Cost + $406/ hour installation fee (1 hour minimum) g. 6" Actual Meter Cost + $396/ hour installation fee (1 hour minimum)Actual Meter Cost + $406/ hour installation fee (1 hour minimum) h. 8” and larger Water Meter Actual meter and labor cost Actual meter and labor cost PWWA-06 Fire Hydrant Testing (per hydrant) $269.55 $276.55 PWWA-07 Temporary Hydrant Meter Application Fee & Deposit Application Fee $95.00 $97.47
Meter Deposit $1,557.00 $1,557.00
Meter Deposit processing charge
(based on issuance date of meter)
Return within 1 month or less- charge 10% of deposit
Return within 3 months or less- charge 15% of deposit
Return within 6 months or less- charge 20% of deposit
Return within 12 months or less- charge 25% of deposit
Return within 1 month or less- charge 10% of deposit
Return within 3 months or less- charge 15% of deposit
Return within 6 months or less- charge 20% of deposit
Return within 12 months or less- charge 25% of deposit
PWWA-08 Water Deposit $1,500 $1,500.00
PWWA-09 (NEW) Water Neutrality Review Fee N/A Actual Cost* Subject to a minimum $1,000 Deposit at time of review request

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REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25
PWWW-01 Sewer/Wastewater Service
A. Sewer Service Monthly Service Rates:
1) Residential:
a) Single Family $130.87 Prop 218
b) Duplex (per dwelling unit) $109.93 Prop 218
c) Townhouse (per dwelling unit) $109.93 Prop 218
d) Apartment / Condominium (per dwelling unit) $109.93 Prop 218 2) Commercial/Institutional:
a) Low Strength (per unit of water billed) $5.50 Prop 218 b) Medium Strength (per unit of water billed) $8.36 Prop 218 c) High Strength (per unit of water billed) $23.78 Prop 218 B. Sewer Availability Charges
1) Parcels 1 acre and larger (per acre per year) $741.95 Prop 218 2) Parcels less than 1 acre (per acre per year) $378.85 Prop 218 PWM-01 Utility Street Use
PWM-02 Private Refuse Utility Street Use Per Franchise Agreement Per Franchise Agreement PWM-03 Street Lighting | NO | | NO |
PWM-04 Street and Easement Landscaping | CITY- | | CITY- | PWM-05 Median Maintenance | WIDE | | WIDE | PWM-06 Cul-de-Sac Maintenance | ASSESSMENTS | | ASSESSMENTS | PWM-07 Street Sweeping | AT | | AT |
PWM-08 Storm Drainage | THIS | | THIS |
PWM-09 Neighborhood Park Maintenance | TIME | | TIME | PWM-10 Fat, Oil and Grease (FOG) Monitoring Program (Waste Discharge Permit Annual Fee) A. Class A (Industry) Waste Discharge Permit Annual Fee $687.00 per permit pass-through fee from San Mateo Source Control Inspectors
$728.22 per permit pass-through fee from
San Mateo Source Control Inspectors
B. Class B (Restaurant) Waste Discharge Permit Annual Fee $497.00 per permit pass-through fee from San Mateo Source Control Inspectors
$526.82 per permit pass-through fee from
San Mateo Source Control Inspectors
C. Analytical Services Fee Actual Cost pass-through fee from San Mateo Source Control Inspectors
Actual Cost pass-through fee from
San Mateo Source Control Inspectors
[1] est. gpd = commercial customer's estimated gallons per day of indoor water use [2] Estimated gallons per day of single family indoor water use [3] Strength factors based on baseline single family strengths of 240 mg/L of BOD and 240 mg/L of TSS
mg/L = milligrams/liter
BOD = Biochemical Oxygen Demand
TSS = Total Suspended Solids
PWM-11 Sidewalk Maintenance Administration Fee
Tier 1 - R1 (Voluntary) $150 (Administrative Fee) + Actual Contractor Cost $153.90 (Administrative Fee) + Actual Contractor Cost Tier 2 - R1 (Advanced) and All Other Zones $419 (Administrative Fee) + Actual Contractor Cost $429.80 (Administrative Fee) + Actual Contractor Cost

4.6 Attachment 1 - Proposed Master Fees and Service Charges Schedule for FY 2024-2025

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REF. NO. REVENUE TITLE FY 2023-24 Proposed FY 24-25
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule
Proposed Fiscal Year 2024-25

HUMAN RESOURCES
HR-01 CalOpps
CalOpps Join Fee for Full Membership (One-time set up fee) $6,491.00 $6,660.00 Annual Fee for Full Membership $3,975.00 $4,078.00
Per-Posting Fee (Advertise Only) $567.00 $582.00

MISCELLANEOUS
MISC-01 New Business License Review $43.00 $44.00
State Mandated Disability Access Fee (each Business Tax Application and renewal) Per Senate Bill No. 1186 - $4.00 Per Senate Bill No. 1186 - $4.00 Business License for branches $25/address $25/address
Business License - reprinting $25/certificate $25/certificate MISC-02 Returned Deposit Processing Per CA Civil Code 1719 - $25 for first and $35 for each subsequent deposit
Per CA Civil Code 1719 - $25 for first and
$35 for each subsequent deposit
MISC-03 Check Stop Payment & Replacement Actual costs Actual costs MISC-04 Document Printing and Copying
Photocopying (8 1/2" x 11") $5.00 for 1st page, $0.25 for each additional page $5.13 for 1st page, $0.25 for each additional page Large Documents (11" x 17") $6.00 first page, $1.16 for each additional page $6.15 first page, $1.19 for each additional page Special Maps (24" x 36") $7.00 first page, $2.00 for each additional page $7.18 first page, $2.05 for each additional page Blueprint (36" x 48") $8.00 first page, $2.50 for each additional page $8.20 first page, $2.56 for each additional page MISC-05 Document Certification (Per document) $21.00 $21.54 MISC-06 Records & Information Research $127.00 $130.30
MISC-07 Agenda/Minute Mailing
Agendas $113/per year plus postage cost $115.93/per year plus postage cost Agendas & Minutes $183/per year plus postage cost $187.75/per year plus postage cost Planning Commission Agendas $109/per year plus postage cost $111.83/per year plus postage cost MISC-08 Repair of City Property 100% of Dir. Exp. + Overhead 100% of Dir. Exp. + Overhead MISC-09 Video / Audio Duplication (DVD, VHS, Cassette) Actual costs Actual costs MISC-10 For services requested of City Staff for which no fee is listed in this Master Fee Schedule, the appropriate fee hourly rates for staff time involved in the service Per attached Schedule C Per attached Schedule C
MISC-11 For services requested of Outside Consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration.

Actual costs + 15% Administration Cost Actual costs + 15% Administration Cost MISC-12 Outgoing Wire Fee $69/wire $71/wire
MISC-13 Notary Fee $15 per document $15 per document

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DATE: March 25, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City/District Manager
FROM: Sofia Mangalam, Director, Community Development
SUBJECT: CHANGES TO THE MASTER FEES AND SERVICE CHARGES

SCHEDULE FOR THE COMMUNITY DEVELOPMENT DEPARTMENT
FOR FISCAL YEAR 2024-2025

RECOMMENDATION
Staff seeks policy direction from the City Council regarding changes to the Fees and Service Charges for the Community Development Department for FY 2024-2025 budget.

EXECUTIVE SUMMARY
Master Fee Schedule is a document that details fees for services that the city provides to its residents and customers. The Community Development Department recommends amending the Master Fees and Service Charge Schedule, including introducing new fees for various services and revising a few existing fees.

BACKGROUND
California State Law, Government Code 66014(a), stipulates that certain zoning and permit fees (“user fees”) charged by local agencies “…may not exceed the estimated reasonable cost of providing the service for which the fee is charged”.

User fees recover costs associated with the provision of specific services benefiting the user, thereby reducing the use of General Fund monies for such purposes. In addition to collecting the direct cost of labor and materials associated with processing and administering user services, it is common for local governments to recover support costs.

Building Fees

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Under the provisions of California Health and Safety Code section 17951, permit fees can only be those that defray the costs of enforcement and are not to be used for general revenue purposes. California Health and Safety Code section 17951 reads in part:
(a) “The governing body of any county or city, including a charter city, may prescribe fees for permits, certificates, or other forms or documents required or authorized by this part or rules and regulations adopted pursuant to this part. (b) The governing body of any county or city, including a charter city, or fire protection district, may prescribe fees to defray the costs of enforcement required by this part to be carried out by local enforcement agencies.
(c) The amount of the fees prescribed pursuant to subdivisions (a) and (b) shall not exceed the amount reasonably required to administer or process permits, certificates, or other forms or documents or to defray the costs of enforcement required by this part to be carried out by local enforcement agencies and shall not be levied for general revenue purposes. The fees shall be imposed under Section 66016 of the Government Code.”

ANALYSIS
The Community Development Department is organized into two (2) divisions - the Planning/Code Enforcement Division and Building Division.

1. The Planning/Code Enforcement Division is responsible for long-term planning regarding the 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. Typical entitlement applications, such as Use Permits, Architectural Reviews, Variances are processed through the Planning Division.

2. 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 oversees the plan check, permit issuance, and conduct inspections of all development projects and construction improvements to ensure compliance with the local and state building codes.

Building fees
In 2023, a User Fee Study was prepared that included a comprehensive assessment of the reasonable costs associated with each service provided. This evaluation included an in-depth analysis of the time spent on various tasks, such as reviewing plan submittals, conducting inspections, and the administrative work involved in issuing permits.

It became evident that the process for most permits involves the participation of multiple staff members, each dedicating varying amounts of time - ranging from a few minutes to several hours - to different aspects of the permit process. This multifaceted involvement underscores the complexity and resource-intensiveness of our operations. The result of the fee study was an updated master fee schedule which was approved by the City Council on

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May 01, 2023. The new updated fees became effective July 1, 2023. However, upon further review, it was noted that certain crucial activities and services currently lack specific fees in our approved master fee schedule.

New Fees
As discussed above, certain fees need to be added in order to recover costs of providing services, as described below:
•Alternate Method and Material Request (AMMR):

For certain building permits, staff receive requests for alternate methods and materials (AMMR) to mitigate a shortcoming in the design of a project with respect to an applicable building code. This needs the involvement of the Chief Building Official (CBO) and/or the Plans Examiner to evaluate the safety and compliance of the proposed alternatives.

Following are examples of AMMR fees charged by a few cities:
•City of San Mateo: $907.73 flat fee ( link to master fee schedule, page 2.5) •City of Burlingame: $351 per hour ( link to master fee schedule, page 4) Staff recommend adding the actual cost for AMMR applications. •New Address:

Staff receive requests for new addresses or to retire existing addresses to maintain an up-to-date address database. For example, a large commercial tenant wanting to divide or add a new space. Additionally, in residential usage, when a new ADU (Accessory Dwelling Unit) is created, it requires a new address for the ADU. To keep the address database current, staff need to create new addresses or retire unused addresses from the system. This process involves notifying the USPS, utility providers, emergency responders, and the County Assessor's office. Staff has created a new form for requests to either add a new address or retire an existing one. This often requires the attention of the building staff to assess the impact on city addressing systems and ensure compliance with regulations.

Following are examples of new address request fees charged by a few cities:
•City of San Mateo: $959.30 flat fee ( link to master fee schedule, page 10.10) •City of Burlingame: $378 flat fee ( link to master fee schedule, page 20) •City of San Bruno: Fully burdened hourly rate and/or actual consultant cost (link to master fee schedule, page 10)
Staff is recommending charging the actual cost for staff time spent on evaluating and processing addressing requests.
•Permit Extension:

In the past year, due to high inflation and high construction interest rates, staff received requests to extend permits which have been either approved or issued.

These requests involve checking the reason for the extension, the progress of the project, and any other relevant information.

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Following are examples of permit extension fees charged by a few cities:
•City of Palo Alto: $107.91 flat fee ( link to master fee schedule, page 54) •County of Santa Cruz: $96.35 flat fee ( link to building permit fees) •City of San Jose: $105 flat fee ( link to fee schedule, page 14) Staff recommends charging an hourly rate of the Permit Technician II to ensure that the city recovers the costs associated with processing permit extension requests, including administrative time and resources.
•Temporary Certificate of Occupancy (TCO) Request:

A TCO enables occupancy or partial occupancy of a building before the building project is completed and the CBO is required to assess safety and compliance issues before allowing the temporary occupancy. It is issued only when incidental construction, such as site and interior work not regulated by the code or exterior decoration not necessary to the integrity of the building, remain.

Following are examples of TCO fees charged by other cities:
•City of San Mateo: $481.92 flat fee (link to master fee schedule, page 2.6) •City of San Bruno: Fully burdened hourly rate and/or actual consultant cost (link to master fee schedule, page 10)
Staff recommend charging the actual cost to cover CBO's time and expertise in reviewing and issuing TCOs.
•Revision Reviews:

Staff frequently receive revisions to the initial set of construction plans that were initially submitted and approved as part of the building permit application. Upon receiving such requests, the Plans Examiner reviews and assesses the proposed changes for building codes and regulations.

Following are examples of AMMR fees charged by a few cities:
•City of San Mateo: $294.87/hour with minimum ½ hour ( link to master fee schedule, page 2.5)
•City of Burlingame: $351 per hour ( link to master fee schedule, page 5) •City of San Bruno: $218 per hour with minimum ½ hour ( link to master fee schedule, page 8)
Staff recommend charging the actual cost to cover staff time spent on reviewing the revisions.

Revised Fees
•Express Plan Review Fee:

Express Plan Review is a fast-track review process where various city departments,

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like Building, Planning, and Public Works, review building permit plans all at once.

This service is a great option for businesses and residents in our city, allowing them to speed up the approval of their permit applications. The service not only accelerates the review timeline but also provides applicants with a unique opportunity to address any necessary corrections or revisions immediately.

Furthermore, it allows for the issuance of permits on the same day as approved, facilitating a swift and efficient process for applicants.

The current master fee schedule in the City of Foster City's Building Division sets a flat fee of $161.00 for all express plan reviews. However, this is not justifiable considering the diverse types of projects offered under express reviews. This includes various residential projects like Accessory Dwelling Units (ADUs), Junior Accessory Dwelling Units (JADUs), Solar installations, electrical vehicle charging stations (EVCS) and more. Additionally, in commercial projects, it covers interior tenant improvements and minor structural work. The reason for revising the fee for Express Plan Review is rooted in the recognition of the substantial effort and resources that city staff dedicate to prioritizing these requests.

Cities Offering Express Review and Extra Fees: the City of San Jose provides residential express service and charges 1.5 times the current plan review with 1 hour minimum (link to master fee schedule, page 15).

Staff is recommending that for “Express Plan Review”, City charges additional 50% of regular plan checking fee except for minor projects like ADUs, JADUs, solar, and EVCS.

Exemption: Staff is recommending that certain permit types be exempted as they are subject to timeline requirements under state law, as follows:
oADUs/JADUs (AB 2221): The applications for ADU/JADUs must be approved/denied within 60 days of plan submission.
oEVCS (AB 970): For projects with 1-25 stations at a single site, applications must be reviewed for completeness within 5 business days and approved/denied within 20 business days.
•Penalty Fee
If work is completed without a building permit being issued, it is a violation and a stop work order is issued by the Code Enforcement Officer.

If the unpermitted work is residential, a building inspector performs a site inspection to access the construction work and informs the property owner/applicant what documents and information must be provided to the building division in order to obtain a building permit. A licensed engineer or architect may be required to certify plans and documents. Any work that cannot be verified by the inspector must be certified by a licensed engineer or architect to the satisfaction of the Building Official.

If the unpermitted work is commercial, a licensed architect or engineer must prepare and certify all plans and documents and submit them to the Building Official for

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review and approval. When the plans are approved by the Building Official, a building inspector performs the inspections. However, any construction which the inspector cannot verify needs to be qualified by a licensed engineer or architect to the satisfaction of the Building Official. This may require testing and/or demolition and often becomes very time-consuming.

Master Fee schedule includes penalty fees for work without permit, including the following:
a. R-1 $344 processing fee, + 200% of the permit fee
b. Others $688 processing fee, + 200% of the permit fee Following are examples of penalty fees charged by a few cities:
oCity of Menlo Park: A penalty fee equal to the amount of the permit fee will be imposed on projects undertaken without the appropriate permits ( link to master fee schedule, page 24)
oCity of San Bruno: Up to 10 X Permit Fee ( link to master fee schedule, page 10)
oCity and County of San Francisco: For work without a building permit, the penalty is nine times the issuance fee plus the original permit fee (link). oCity of Daly City: $1,180 with continued accrual, 31 to 60 days: $475, 61 to 90 days: $575 (link).

However, staff would like the City Council to consider making revisions to penalty fees. It has been noted that in many instances especially related to minor home repairs, the homeowners might not be aware of the requirements related to a building permit and causes undue burden on the homeowner. Staff is proposing the following revisions:
a. R-1 permits
permit applied* within 10 days $376 processing fee
permit applied* 11-30 days $376 processing fee + 100% permit fee permit applied* after 30 days $376 processing fee + 200% permit fee b. Others
permit applied* within 10 days $753 processing fee
permit applied* 10-30 days $753 processing fee + 100% permit fee permit applied* after 30 days $753 processing fee + 200% permit fee (Note * with complete drawings/documents and applicable fees) Staff wants to encourage the applicants/property owners to apply for the permits with complete drawings and applicable fees within ten (10) days and proposing to apply a flat fee of $376 for residential permits and $753 for all other permits, to cover the cost of the initial inspection(s) and permit processing, and subsequently, increase the penalty if the violation is not abated. The increase from $344 to $376 and $688 to $753 is after the annual adjustment to account for annual inflation based on prior year annual percentage (9.4% per Building Cost Index (BCI) published by the California Department of General

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Services, Real Estate Services Division).

Planning Fees
Specific to Planning Division, the schedule includes fees for planning, zoning, and subdivision activities and recently adopted development impact fees. In the current Planning Division fee schedule, there are 30-line items (CDP-01 through CDP-30). These fees are either flat fees or deposit-based fees.
•Deposit-based fees:

The existing fee structure for subdivision mapping imposes a flat rate alongside the actual City expenditures incurred. However, this flat rate only covers two to four hours of staff time, which is quickly depleted. Moreover, given the complex nature of subdivision mapping, Public Works frequently engages third-party professional engineers and/or surveyors to ensure compliance with the Subdivision Map Act, Foster City Municipal Code, and technical accuracy.

Under the current fee structure, staff have to immediately request additional deposits from applicants to cover the costs of these third-party reviews. This procedural delay hampers the review process. To remedy this, the staff proposes a more realistic deposit, aligning with the minimum costs observed for such reviews in the past.

Implementing this adjustment would enable applicants to have a clearer understanding of the minimum associated costs prior to submitting their applications.

Additionally, it would allow staff to conduct reviews more efficiently, facilitating a smoother and more expedited process for all parties involved.

For Subdivision Map fees, staff is recommending a 2.6% general increase to the application fee and adding deposits amounts, including $10,000 for Tentative Subdivision Map, Tentative Parcel Map, Revision, and Extension fees and $5,000 for Lot Line Adjustment to cover the cost of staff time based on current staff’s hourly rates and third-party professional engineers. In addition, add a $5,000 deposit for third party reviews, when applicable.
a-d. Tentative Subdivision Map/Tentative Parcel Map/Tentative Subdivision or Parcel Map Revision/Tentative Subdivision or Parcel Map Extension - $831 Application Fee plus Actual Cost subject to a minimum $10,000 initial

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deposit.
e. Lot Line Adjustment - $488 Application Fee plus Actual Cost subject to a minimum $5,000 initial deposit.
f. Third Party Reviews - Actual Cost subject to a minimum $5,000 initial deposit. •Fee for Signage violations:

During the review of the current sign ordinance and drafting of the revisions, staff noted that there are fee violations, which are part of the sign ordinance and are not included in the master fee schedule, as follows:

1. A fine not exceeding one hundred dollars for a first violation;

2. A fine not exceeding two hundred dollars for a second violation of the same provision within one year; and

3. A fine not exceeding five hundred dollars for a third or subsequent violation of the same provision within one year.

4. For purposes of this section each day in which an illegal condition continues is a single violation and each subsequent day such illegal condition continues is a new and separate offense.

For transparency, staff would like these fees to be included in the master fee schedule under Planning fees.

Housing Fees
The Community Development Department (CDD) oversees Affordable Housing programs, including Deed Restricted Ownership Units, Below Market Rate (BMR) program, Existing Unit Purchase Program, HIP Home Sharing Program, and Housing Rehabilitation Loan Program. The staff is responsible for overseeing and monitoring existing BMR programs are aligned with existing property covenants and agreements.

On November 20, 2023, the City Council approved amendments to Title 17, Zoning Chapter 17.90 Below Market Rate Inclusionary Housing Program and revisions to BMR Administrative Procedures and Guidelines “BMR Guidelines”.

Staff recommends establishment of a BMR compliance and monitoring fee schedule to be added to the City’s Master Fee Schedule. The fee schedule would consist of a) an annual monitoring fee to cover staff time to review annual reports, conduct audits and inspections of BMR properties and files, and review and calculate rent and utility allowance calculations annually; and b) compliance fees, comprised of penalties on a per property and/or per unit basis that would be assessed for non-cooperation with staff enforcement efforts or continued or repeated non-compliance.
a) Monitoring fees
Staff recommends that monitoring fees only apply to future development projects, not existing BMR properties. In researching monitoring fees, staff found that fees range from

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$35 per unit to $150 per unit. The California Tax Credit Allocation Committee charges $415 per unit for their compliance monitoring fee. While no jurisdiction in San Mateo County was found to use monitoring fees at the present time, several jurisdictions are considering establishing monitoring fees for BMR developments. In Foster City, the Workforce Housing Affordable Housing Regulatory Agreement and Declaration of Covenants includes an annual monitoring fee of $70 per unit. However, the City does not charge this amount because it has retained ownership of the units.

Staff is recommending an annual monitoring fee of $72 per unit per year for the term of affordability with reasonable periodic increases for BMR units in all future affordable housing development agreements.
b) Compliance fees
It is critical to maintain the integrity of the City’s BMR Housing Program through compliance with regulatory agreements, the BMR Rental Housing and Ownership Housing Procedures and Guidelines, Municipal Code Chapter 17.90, and the Housing Element.

As per BMR guidelines, in the event that the City determines that BMR management practices are not in compliance with the provisions of the property’s affordability restrictions, or other regulatory document in effect, City staff shall notify the Property Manager with a Notice of Non-Compliance, and remedies. Property Managers/Owners that remain in a state of non-compliance for more than ninety (90) days after the date of a Notice of Non-Compliance or Denial of an Appeal of Non-Compliance or are notified by the City of non-compliance may be subject to fines.

To facilitate compliance, staff recommend assessing penalty fees on non-compliant owners/managers of both existing and future BMR properties as part of the enforcement process. Penalty fees would be assessed only if non-compliance remains uncured for more than 90 days. Examples of types of penalty fees include, but are not limited to:
•Unwarranted removal of a tenant from a BMR program. Penalty fees would be in addition to any credits owed to the tenant.
•Non-compliance with BMR Rental Procedures and Guidelines, such as failure to use required methods to determine eligibility or annual recertification of income, or failure to maintain files as required.
•Non-compliance with term or terms of deed restrictions or affordability agreements, such preferences, annual report deadlines, annual recertifications, adhering to occupancy standards, or overcharging of rent, or not handling over-income tenants as required, or not maintaining property or units as required. Penalty fees would be in addition to any credits owed to individual tenants.
•Late payment or non-payment of annual monitoring and compliance fees.

Staff recommends the establishment of compliance fees in the event of non-compliant BMR property owners and managers in the amount of $500 per incident (approximately two hours of staff time), plus the actual cost of City Attorney time. All revenues for BMR compliance and monitoring fees would be allocated to Affordable Housing Funds 122 and

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124.

These proposed fees are designed to align with the actual costs incurred by the city in providing these services while also offering transparency and fairness to applicants. They ensure that those requesting expedited or specialized services cover the additional expenses associated with their requests, ultimately benefiting both the city and its residents.

It shall be noted that as included in the master fee schedule, all the fees are subject to annual adjustment to account for annual inflation based on the prior year annual percentage (%). Upon approval, these new and revised fees will be in effect in 60 days.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (general rule for projects that have no direct or reasonably foreseeably indirect physical change to the environment).

FISCAL IMPACT
The amended changes to the 2024-2025 Master Fees Schedule for Community Development will allow the City to more efficiently recover costs for materials and staff times associated with specific projects. Since the fees cover actual costs, there is no additional fiscal impact to the City or the applicant.

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

4.6 Attachment 2 - Community Development Recommended Changes to its Fees and Charges

197

Date:

To:

Via:

From:

Subject:

March 5, 2024
Mayor and Members of the City Council
Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
Derek Schweigart, Parks and Recreation Director
Tiffany Oren, Recreation Manager
Proposed changes to the Master Fees and Charges Schedule for FY 2024- 2025:

Parks and Recreation Department

RECOMMENDATION
It is recommended that the City Council provide policy direction regarding proposed changes to the Master Fee and Service Charges Schedule (MFS) pertaining to the Parks and Recreation (Department) for Fiscal Year (FY) 2024-2025 budget.

EXECUTIVE SUMMARY
Parks and Recreation fees and charges are a critical component in cost recovery for services in the Special Recreation Fund. The Department seeks to maintain competitive charges and fees for facilities, programs and services while achieving maximum cost re covery for the City. The following fee changes are recommended for FY 2024-2025:

1. Remove Recreation Center rooms due to building renovation.

2. Increase Community Center reservation rates by 5%.

3. Add temporary modular units to Facility reservations.

4. Modify Vibe reservation areas to expand rental options.

5. Material Based Fees: new items added.

6. Increase Park reservation rates by 5%.

7. Add reservation fees for basketball courts.

8. Add fees for Community Garden.

9. Round up current reservation fees to nearest whole dollar amount.

BACKGROUND
The Special Recreation Fund is a General Fund that is used to account for the expenses and revenue in the following program areas:
• Facility Operations (including rentals for facilities, parks, and sports fields) • Adult Sports
• Youth Camps

4.6 Attachment 3 - Parks and Recreation Recommended Changes to its Fees and Charges

198

• Adult Contract Classes
• Special Events (City events like Summer Concerts and Fourth of July) • Youth Contract Classes
• Advertising
• Seniors/Volunteers
• Teen Programs
The Department’s fees and charges are a critical component in cost recovery for services in both the General Fund (Parks) and the Special Recreation Fund (Recreation).

The Department actively identifies programs that can be partially or completely self - supporting, and regularly reviews and adjusts program fees in accordance with market conditions and trends to remain competitive with fees charged by neighboring cities.

ANALYSIS

For FY 2024-2025 the following changes are recommended to Parks and Recreation Fees on City’s MFS:

Rentals and Reservations (Change):

Remove the Recreation Center rooms due to site closure
Recreation Center reservations will be removed from the Master Fee schedule due to site closure.

Estimated facility rental revenue loss of $68,307 for Lagoon Room rentals for events over 115 people is projected due to the closure of the center. This information was included in the November 6, 2023 staff report to Council.

Increase Community Center reservation rates by 5% (excl. non-profit rentals) Community Center rental rates remained the same rate for FY 19/20, FY 20/21 and FY 21/22.

Fees were increased by 4% in FY 22/23 . Staff proposes a rate increase of 5% due to overall increased expenses in hourly staffing, supplies and utilities. Projected additional revenue = $4,400.

Room Day of the
Week
FY 23/24 FY 24/25 FY 23/24 FY 24/25
Resident Resident Non-Resident Non-
Resident

Port,
Starboard,
Sail, Conf.

Mon-Thurs $52/hr. $55/hr. $78/hr. $82/hr.

Fri ‐ Sun $88.40/hr. $94/hr. $109/hr. $104/hr.

Wind
Mon-Thurs $78/hr. $82/hr. $104/hr. $109/hr.

Fri ‐ Sun $130/hr. (5 hr.
min.)
$137/hr. (5
hr. min.)
$188/hr. (5 hr.
min.)
$197/hr. (5
hr. min.)
Custodial Fee For groups of
over 80 $52 (flat fee) $55 (flat fee) $52 (flat fee) $55 (flat fee) Patio (with
Wind Room) $104 (flat fee) $109 (flat fee) $104 (flat fee) $109 (flat fee)

4.6 Attachment 3 - Parks and Recreation Recommended Changes to its Fees and Charges

199

Add Temporary Modular Units
The Department plans to lease three (3) modular units to accommodate programming and rental space during the Recreation Center closure. Two (2) 24’x40 ’ classroom size units and one (1) 48’x40' classroom size unit. To determine the rental rate, staff reviewed the San Mateo -Foster City School District’s published fair market rate for modular units of similar size to use as a base rate. The School District’s pricing is for space available “as is” so renters are not able to move desks, tables and chairs from the room rented. Our pricing is slightly higher since renters receive an open space with accommodation available for setup of tables and chairs to their needs.

Demand for modular units as a rental option is unknown as these are not typically offered by Parks and Recreation. Staff anticipates renting the smaller units for meetings, and the larger unit could function well for larger meeting groups or classes and programs . Projected revenue:
$30,680 to $39,104.

Resident Non-Resident
24’x40’ classroom size
units
Mon-Thurs $50/hr $77/hr
Fri-Sun $89/hr $104/hr
48’x40' classroom size unit Mon-Thurs $60/hr $92/hr
Fri-Sun $107/hr $125/hr

Modify Vibe Reservation Areas
The Vibe facility currently has two reservation area options. Renters had the option of booking a small area of the Vibe (kitchen, small activity room and patio), or the entire facility at batched rates. Staff proposes the following changes to expand renta l options and add a flat rate kitchen fee (same rate we charged for to reserve the Recreation Center kitchens). Projected additional revenue for expanded reservation areas: $6,240-$12,480.

Current Vibe Rental Structure Resident
Non-
Resident
VIBE‐ Kitchen, Small Activity Rm, and
Patio Monday – Sunday $74.80/hr. $91.50/hr.

The VIBE‐ (Entire Facility:
includes Kitchen, Small Activity Rm,
Main Floor, and Patio)
Monday – Sunday $156/hr. $208/hr.

Administrative Fee $26 (flat fee) $26 (flat fee)
Custodial Fee For groups of over
100 $52 (flat fee) $52 (flat fee)

Proposed Vibe Rental Structure Resident
Non-
Resident
VIBE Main floor = dance floor, patio
and adjacent carpeted area Monday – Sunday $156/hr $208/hr.

Small Activity Room Monday – Sunday $52/hr. $78/hr.

Study Room Monday – Sunday $42/hr. $68/hr.

Kitchen $78 (flat fee) $78 (flat fee)
Administrative Fee $26 (flat fee) $26 (flat fee)
Custodial Fee For groups of over
100 $52 (flat fee) $52 (flat fee)

4.6 Attachment 3 - Parks and Recreation Recommended Changes to its Fees and Charges

200

Material Based Fees: New Items Added
New items were added to the list of materials available for customers at a small fee, including barricades, easels, stanchions, etc. These items are frequently requested, adding them as reservable items ensures they are set aside and ready for customers at the time of their rental.

Revenue impact is minimal.

Increase Park reservation rates by 5%
Park rental rate s were last increased b y 4% in FY 22/23. Staff propose s a rate increase of 5% due to increased overall expenses in park maintenance. Projected additional revenue: $2,232.

Add Basketball Court Reservation Fees
Basketball courts at Boothbay, Catamaran, Edgewater, Ketch, Leo J. Ryan, Port Royal, Shad, Sunfish, and Turnstone parks will be available to reserve at the same rates charged for the tennis, pickleball, and volleyball courts ($26/hr). Revenue impact is minimal (estimated additional revenue less than $400); however, staff recommend adding the option to the fee schedule due to inquiries from the public to reserve courts.

Add Community Garden Fees
Staff will present a Pilot Community Garden for Council approval at the City Council meeting on April 1, 2024. If approved, fees will be $120.00 per year to rent a garden plot plus an additional $100.00 deposit. Projected additional revenue: $1,440 per year.

Round up current reservation rates to whole dollar amounts Reservation rates for some facilities and parks were increased by exactly 4% in FY 22/23. This resulted in odd reservation rates that included small change, i.e. $36.40/hr for the Clipper room.

For simplicity, the rates were rounded up to whole dollar amounts. Revenue impact is minimal.

FISCAL IMPACT
Facility rental revenue loss of $68,307 is projected due to the closure of the Recreation Center due to loss of revenue for Lagoon Room rentals for events over 115 people. This information was included in the November 6, 2023 staff report to Council.

All other proposed change s to the Par ks and Recreation fee s would add a revenue increase estimated between $37,372 to $51,112 per year.

CITY COUNCIL VALUE/PRIORITY AREAS
This item aligns with the City Council’s Public Safety and Social Equity and Staff Empowerment and Operational Excellence priority areas. Updating Park and Facility Rental Procedures promotes staff efficiency and establishing fair market value rates ensures amenities are accessible to the entire community.
• Please refer to Attachment 1 to the Summary Staff Report for the Proposed Fee Schedule

4.6 Attachment 3 - Parks and Recreation Recommended Changes to its Fees and Charges

201

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0 5
DATE: March 25, 2024

TO: Mayor and Members of the City Council and 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: Andrew Brozyna, Public Works Director
DEPARTMENT: Public Works
SUBJECT: UPDATES TO PUBLIC WORKS DEPARTMENT MASTER FEES AND SERVICE CHARGES SCHEDULE FOR FY 2024-2025

RECOMMENDATION
It is recommended that the EMID Board review and provide direction on the proposed updates to the Public Works Department Master Fees and Service Charges Schedule (MFS) for FY 2024-2025.

EXECUTIVE SUMMARY
The Water Neutrality Ordinance aims to balance the quantity of water used or consumed with the amount of water restored or replenished. The Ordinance provides for the assessment of an administrative fee, and staff recommends the implementation in the MFS of a new $1,000 deposit and actual cost associated with the review of Water Neutrality Ordinance compliance.

Additionally, staff recommends adding a deposit of $250 to the existing item “PWE -08 - PW Research” which is also charged at actual cost.

BACKGROUND/ ANALYSIS

4.6 Attachment 4 - Public Works Recommended Changes to its Fees and Charges

202

1 9
0 5
On May 17, 2023, the EMID Board of Directors adopted a Water Neutrality Ordinance (EMID Ordinance No. 138) to implement water reduction regulations for applicable developments to ensure that new development does not adversely affect the City's water supply.

The Ordinance requires new development(s), redevelopment or changes in use within the EMID service area that will require a new water service or will increase water demand above the existing water demand level to offset the projected water demand with water efficiency/conservation/retrofit measures to result in a neutral impact on the overall water use demand. As part of exemptions listed in section 8.90.040, the ordinance exempts single family residential and single family accessory dwelling units.

Section 8.90.160 of the Water Neutrality ordinance provides for the assessment of an administrative fee at the time an application is filed. Staff recommends amending the MFS to add a $1,000 deposit and fee based on actual cost at the staff billing hourly rate. The recommended fee is intended to account for the time required to retrieve the required five-year water demand data that will be provided to the applicant, review of calculations and water conservation off-set measures provided by the applicant, and subsequent monitoring for compliance, as required by the ordinance. Since development projects vary in complexity, they will be assigned to an Associate or Senior Engineer or other reviewer as appropriate and billed accordingly. “PW Research” was added to the MFS in 2023 as a fee to be charged for providing research such as reports and maps that relate to public infrastructure. This fee is charged based on the time and materials required to complete the requested research.

For consistency in the MFS, it is recommended that both the PW Research and the Water Neutrality Review fee are deposit-based fees. The recommended deposit amounts are $250 for PW Research and $1,000 for Water Neutrality Review. Actual costs incurred would be charged against the deposit, with any remaining funds returned as applicable.

CEQA
Not Applicable

FISCAL IMPACT
An increase in fee collection is expected, however the actual increase in revenue will be dependent upon the use of the services identified. Fees are based on the recovery of actual cost to provide service, thus the net fiscal impact should be negligible.

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

4.6 Attachment 4 - Public Works Recommended Changes to its Fees and Charges

203

DATE: March 25, 2024

TO: Mayor and Members of the City Council

VIA: Stefan Chatwin, City/District Manager

FROM: Edmund Suen, Finance Director
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager

SUBJECT: INTERNAL SERVICE FUNDS SUMMARY

RECOMMENDATION
It is recommended that the City Council review this report and its attachments, and by Minute order, provide policy direction on reserve levels and funding methodologies for its Internal Service Funds in the preparation of its FY 2024-25 budget.

EXECUTIVE SUMMARY
As indicated in Attachment 1, each of the Internal Service Funds (Vehicle Replacement Fund, Equipment Replacement Fund, Information Technology Fund, Building Maintenance Fund, Compensated Absences Fund, and Wastewater Equipment Replacement Fund) is projected to meet targeted reserve levels as of 6/30/2024. The Self-Insurance Fund and Water Equipment Replacement Fund are $94,722 and $176,471 shy of their target of $1.0 million and $4.29 million respectively. The Longevity Benefit and PEHMCA Benefit Internal Service Funds reserve balances represent set asides for post-employment liability. Based on the current practice, City staff recommends the continuation of assessments for estimated benefit charges to applicable departments in FY 2024-25. Lastly, the Compensated Absences Internal Service Fund reserve balance represents the estimated accrued value of earned leave (vacation and sick) upon General Fund employee separation from the City. As such, earned leave payout is charged to this Fund at such time.

4.7 4.7 Staff Report

204

BACKGROUND
Internal Service Funds are the mechanism by which the City accumulates funding over time in preparation for known future large purchases and/or other future liabilities.

Internal Service funding is a conservative budgeting strategy that has helped Foster City proactively fund necessary expenditures.

The City of Foster City has established eight (8) Internal Service Funds to which it transfers funds in preparation for future large expenses. These funds are:
•Vehicle Replacement Fund (501) – For staffing costs and purchases related to the vehicle fleet including vehicles and repair equipment. •Equipment Replacement Fund (502) – For the purchase of operations equipment with a cost of at least $1,000.
•Self-Insurance Fund (503) – For the costs associated with the Insurance and Risk Management program.
•Information Technology Fund (504) – For staffing costs and purchases of equipment related to information technology including computers, servers, phone systems, routers, etc.
•Building Maintenance Fund (505) – For staffing costs and the upkeep of all City buildings, including paint, HVAC, roofing, equipment, and building maintenance. •Compensated Absences (509) – For payouts of accrued leave upon termination of employment based upon provisions of various employee Memoranda of Understanding (MOUs) and the City’s Compensation and Benefits Plan. •Water Enterprise Equipment Replacement Fund (408) – For the purchase of operations equipment with a cost of at least $1,000.
•Wastewater Enterprise Equipment Replacement Fund (458) – For the purchase of operations equipment with a cost of at least $1,000.

Funding is set aside in these funds based on an annual analysis of each Fund’s needs.

Balances are impacted by various factors, including interest accumulation on reserves, estimates of replacement values, actual timing of asset replacements compared to scheduled timing of such replacements, and/or disparities (if any) on the cost of replacement items compared to accumulated funding. The Compensated Absences Fund Balance tends to vary from year to year depending upon actual vacation accruals, vacation time taken by staff, annual elected vacation payouts, the number of retirements, and/or separations from service.

The City also has two (2) Internal Service Funds that collect assessments of estimated

4.7 4.7 Staff Report

205

retiree benefit payments to applicable departments, namely:
•Longevity Recognition Benefits Fund (507) – For the payment of Longevity Recognition Benefits post-employment benefits to qualified individuals. •PEMHCA Benefits Fund (508) – For the payment of Public Employees Medical and Hospital Care Act post-employment benefits to qualified individuals.

City staff recommends the continuation of this practice in FY 2024-25.

ANALYSIS
Internal Service Fund balances are analyzed periodically to ensure that funding is adequate based upon the requirements of each Fund and to determine the level of available balances compared to calculated requirements.

Over the course of the past months, each Internal Service Fund was analyzed and after deducting funding dedicated for the replacement of equipment and/or the accrued liability, the reserve established by policy is then applied. The resulting balance is considered available Unassigned Fund Balance (reserve balance).

Over the past years, City staff implemented a 15% chargeback discount in the Vehicle Replacement Fund and Equipment Replacement Fund and have continued to hold adequate reserves. Staff recommends the continuation of this practice for FY 2024-25.

This discount methodology is expected to limit each Fund’s reserve build-up in future years while still maintaining targeted reserves.

The analysis of Internal Service Fund balances is an integral step in financial and fiscal sustainability management and is done annually as part of the budget process.

Detailed discussion about each Internal Service Fund can be found in the separate staff reports presented this evening.

FISCAL IMPACT
City Staff seeks reaffirmation of the City Council’s policy on reserve levels and funding methodologies for its Internal Service Funds in the preparation of its FY 2024-25 budget.

A reaffirmation helps maintain the City’s fiscal sustainability.

CITY COUNCIL STRATEGIC PRIORITY
Staff Empowerment and Operational Excellence

4.7 4.7 Staff Report

206

Attachment:

Attachment 1 - Analysis of Internal Service Funds Balances

4.7 4.7 Staff Report

207

City of Foster City
Analysis of Internal Service Funds Balances
Projected as at June 30, 2024
Water Wastewater
Enterprise
Equipment
Replacement
Fund 458
Vehicle
Replace-
ment
Equipment
Replace-
ment Fund
502
Information
Tech-
Insurance nology Fund
Fund 503 504
Building
Main-
tenance
Fund 505
Enterprise
Equipment
Replacement
Fund 408
Self Longevity
Recognition
Fund 507
Compensated
Absences Fund
509
PEMHCA
Fund 508Fund Balance Analysis Fund 501 Total
Estimated Ending Fund Balance at 6/30/24 1
Funds required per detail analysis of each Internal
Service Fund 2
Projected funds available (required) at 6/30/2024 before minimum reserves
Equipment Replacement/Building Maintenance
Reserves (minimum $100,000 per fund)
Fund Surplus (Deficit) available after Vehicles,
Equipment Replacement, Building Maintenance
Reserves
$
$
6,292,580 $ 6,689,496 $ 905,278 $ 5,880,299 $ 9,025,173 $ 2,781,834 $ 6,591,995 $ $
3,639,437
2,797,558
841,879
-
$ 41,806,092
32,065,783
9,740,309
(400,000)
$ 4,112,780
4,289,251
(176,471)
-
$ 2,424,428
2,277,929
146,499
-
4,897,058 $ 5,505,166 $ 1,000,000 $ 3,162,105 $ 5,330,067 2,781,834 6,591,995 1,395,522 1,184,330 (94,722) 2,718,194 3,695,106 - -
(100,000) (100,000) - (100,000) (100,000) - -
$
$
1,295,522 $ 1,084,330
-
$
$
(94,722) $ 2,618,194 $ 3,595,106 $
$
- $
$
-
-
$
$
841,879
-
$
$
9,340,309
-
$
$
(176,471)
-
$
$
146,499
-Fund Reallocation To (From) Internal Service Funds - - - - - Adjusted Unassigned Fund Balance above Reserves 1,295,522 $ 1,084,330 (94,722) $ 2,618,194 $ 3,595,106 - - 841,879 $ 9,340,309 (176,471) 146,499 1 Estimated Available General Ledger Fund Balance, 6/30/24 2 For Funds 501 (Vehicle Replacement), 502 (Equipment Replacement), 504 (Information Technology), and Fund 505 (Building Maintenance), these amounts are estimated resources committed to fund asset replacements/building maintenance as of 6/30/24 For Fund 503 (Self-Insurance), the targeted reserve is $1 million.

For Fund 507 (Longevity Recognition) and Fund 508 (PEMHCA Benefit), this represents the projected balance accumulated as of 6/30/24.

For Fund 509 (Compensated Absences), this represents the projected accrued liability for earned leave in the General Fund and Special Revenue Funds.

4.7 Attachment 1 - Analysis of Internal Service Funds Balances

208

DATE: March 25, 2024

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

FROM: Edmund Suen, Finance Director
Waqas Hassan, Assistant Finance Director
DEPARTMENT: Finance
SUBJECT: COMPENSATED ABSENCES INTERNAL SERVICE FUND

RECOMMENDATION/EXECUTIVE SUMMARY
It is recommended that the City Council/EMID Board of Directors (“City Council”) review and accept the report and provide policy direction to fully fund the Compensated Absences Internal Service Fund (CA ISF) for General Fund and Special Revenue Funds accrued liability of employee leave balances. City staff estimates that the FY 2023-24 ending fund balance of the CA ISF will be sufficient to pay for the FY 2024-25 projected benefits’ payments of $514,834 and, therefore, recommends an assessment holiday in FY 2024-25.

BACKGROUND/ANALYSIS
The City provides vacation and sick leave benefits to current employees based upon the two (2) memoranda of understanding (MOU) with AFSCME and FCPOA, and the Compensation and Benefits Plan (C&B Plan) for Management Employees. These benefits are collectively referred to as “compensated absences.” When an employee separates from employment with the City, either through termination, resignation, or retirement, the City is required to pay the final compensated absences balances to the employee based on the provisions within the MOUs or C&B Plan applicable to the employee. For some employees, this payout may be less than $2,000, but for long-term or highly compensated employees, these payouts can be over $50,000.

4.8 4.8 Staff Report

209

The City Council created the “Compensated Absences Internal Service Fund” as of July 1, 2012 through a transfer of available reserves totaling $2.65 million from the General Fund to the new Compensated Absences Internal Services Fund. City staff estimates that the reserve balance at 6/30/2024 will be $3.66 million. Staff also reviewed both recent and historical trends of year-end accrued liability and has determined the current rate of 2.74% can be decreased to 2.11% to maintain a full reserve balance through FY 2024-25.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
City staff recommends decreasing the current rate of 2.74% to 2.11% in FY 2024-25.

The resulting projected CA ISF charges to the General Fund and Special Revenue Funds are estimated to be $511,669 and $3,165 respectively, for a total of $514,834.

However, as the CA ISF has sufficient fund balance to pay for the projected FY 2024- 25 liability and the benefits’ payments, staff recommends no charges to be assessed on General Fund and Special Revenue Funds.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
ATTACHMENTS:

Attachment 1 – Compensated Absences Budget Comparison
Attachment 2 – Compensated Absence Internal Service Fund (ISF) Charges Comparison

4.8 4.8 Staff Report

210

Projected
FY 2023-24
Proposed
FY 2024-25 Variance Notes
Fund Balance, Beginning of Year 3,464,914 3,664,069
Assessments charged 539,574 - (539,574) 1
Interest Income 160,300 128,200 (32,100) 2
Benefit payments (500,719) (514,834) 14,115 3
Projected Fund Balance, End of Year 3,664,069 3,277,435 Detailed Analysis:

Note 1 (Assessments charged)
Variance
Rounded to
nearest
$1,000
(540,000)
Note 2 (Interest Income)
(32,000)
Note 3 (Benefit Payments)
14,000
Compensated Absences Internal Service Fund
Considering that the projected FY 2024-25 beginning fund balance is sufficient to pay for the projected benefits of $514,834, no assessments charges are requested in this budget year.

This amount varies greatly depending on payouts that occur each year. Staff estimates that assessments charged in FY 24/25 will match the benefit payments.

FY 2023-24 is expected to end strong with approximately 5% average returns. However, a conservative 3.5% investment returns are estimated for FY 2024-25.

4.8 Attachment 1 - Compensated Absences Budget Comparison

211

COMPENSATED ABSENCES ISF CHARGES COMPARISON
Approved Calculated 2 Increase
Fund Dept Division FY 2023-24 FY 2024-25 (Decrease) Notes 001 0110 CM ADMINISTRATION $ 25,204 $ 21,722 $ (3,482) 1 001 0210 CITY CLERK ADMINISTRATION $ 7,908 $ 7,832 $ (76) 1 001 0230 CITY CLERKCOMMUNICATIONS $ 12,546 $ 11,668 $ (878) 1 001 0510 REC ADMINISTRATION $ 16,436 $ 15,787 $ (649) 1 001 0520 PARKS MAINTENANCE $ 54,662 $ 55,692 $ 1,030 1 003 0525 FACILITY OPERATIONS $ 6,969 $ 7,109 $ 140 1
003 0534 YOUTH CAMPS $ 2,530 $ 2,710 $ 180 1
003 0535 ADULT CLASSES $ 1,464 $ 1,494 $ 30 1
003 0538 YOUTH CONTRACT CLASSES $ 1,464 $ 1,494 $ 30 1 003 0540 SENIOR PROGRAMS $ 2,929 $ 2,987 $ 58 1
003 0541 TEEN PROGRAMS $ 2,929 $ 2,987 $ 58 1
001 0610 PD CHIEF'S OFFICE $ 11,630 $ 10,552 $ (1,078) 1 001 0620 PD FIELD OPERATIONS $ 136,116 $ 127,127 $ (8,989) 1 001 0630 PD ADMINISTRATION $ 79,989 $ 76,489 $ (3,500) 1 001 0810 PLANNING ADMINISTRATION $ 14,328 $ 13,927 $ (401) 1 001 0811 ADVANCE PLANNING $ 8,950 $ 8,274 $ (676) 1
001 0812 CURRENT PLANNING $ 10,985 $ 10,330 $ (655) 1
001 0813 ORDINANCE ENFORCEMENT $ 4,469 $ 4,317 $ (152) 1 001 0814 ECONOMIC DEVELOPMENT $ 5,272 $ 4,754 $ (518) 1 001 0820 BLDG SAFETY,CODE,PLN CHK $ 25,513 $ 25,015 $ (498) 1 001 0910 PW ADMIN & ENGINEERING $ 28,681 $ 26,590 $ (2,091) 1 001 0920 PW LAGOON & LEVEES $ 10,607 $ 11,027 $ 420 1
001 0930 PW STREET $ 10,607 $ 11,027 $ 420 1
001 1110 FIN ADMINISTRATION $ 10,224 $ 9,110 $ (1,114) 1 001 1120 FIN GENERAL ACCOUNTING $ 19,722 $ 18,983 $ (739) 1 001 1130 FIN UTILITY ACCOUNTING $ 4,208 $ 4,249 $ 41 1 001 1140 FIN TAXES & LICENSES $ 2,136 $ 2,136 $ - 1
001 1210 HR ADMINISTRATION $ 17,758 $ 16,280 $ (1,478) 1 114 1210 CALOPPS $ 2,961 $ 2,807 $ (154) 1
139 0846 WORKFORCE HOUSING $ 377 $ 358 $ (19) 1
$ 539,574 $ 514,834 $ (24,740)
Note 1
2 The Compensated Absences rate reduced from 2.74% to 2.11%. Other factors impacting the variance are wages and authorized positions in FY 2024-25
Charges for compensated absences are calculated but not requested to be assessed in FY 2024-25, since there is sufficient fund balance available to pay for projected compensated absences benefits.

4.8 Attachment 2 - Compensated Absences ISF Charges Comparison

212

5 7
8 DATE: March 25, 2024

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

FROM: Edmund Suen, Finance Director
Waqas Hassan, Assistant Finance Director
DEPARTMENT: Finance
SUBJECT: LONGEVITY RECOGNITION BENEFITS PLAN AND PUBLIC

EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEMHCA)

BENEFITS PLAN INTERNAL SERVICE FUNDS

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (“City Council”), by Minute Order, receive and accept this report on the City/EMID’s (“City”) Longevity Recognition Benefits Plan and the Public Employees Medical and Hospital Care Act (PEMHCA) Benefits Plan Internal Service Funds.

EXECUTIVE SUMMARY
The City has internal services funds for both its Longevity Recognition Benefits and its PEMHCA Benefits Plans. The Fund Balances in each of these funds represent set- asides for post-employment liability. The current practice is to assess estimated annual benefit charges to applicable departments. Fiscal year 2024-25 Longevity and PEMHCA assessment charges to the General Fund are $222,720 and $209,462 respectively. In addition, PEMHCA assessments to the Water and Wastewater Enterprise Funds, and the Vehicle, Information Technology, and Building Maintenance Internal Service Funds are $19,877; $14,117; $2,352; $7,680; and $4,272 respectively; resulting in an aggregate total of $257,760 of PEMHCA assessment charges.

4.9 4.9 Staff Report

213

5 7
8 BACKGROUND
The City offers its employees two types of post-employment benefits other than the pension plans offered through CalPERS. The two benefits plans are as follows:

1. Longevity Recognition – This benefit plan, negotiated under memoranda of understanding with the City’s externally represented bargaining groups and the compensation and benefits plan for Management Employees, provides monthly benefit payments based upon an employee’s length of service with the City at the time of their retirement from the City and in recognition that the City does not otherwise provide for post-employment medical benefits other than the minimum amounts required under PEMHCA (see below). In FY 2007-08, all AFSCME and non-public safety management employees employed with the City voluntarily eliminated the Longevity Recognition plan from their employee agreements.

Current FCPOA, legacy IAFF, and public safety management employees will continue to participate in the program, but new employees in those groups hired after January 1, 2012, are no longer eligible to participate in the program.

2. PEMHCA Plan – City employees participate in a medical benefits plan provided through CalPERS under the PEMHCA medical benefit plan. In accordance with the provisions of the state law, employers must contribute a minimum fixed monthly amount towards the medical benefits costs for current and retired employees participating in the plan. Effective January 1, 2024, the minimum monthly employer contribution is $157 for each retiree, an increase of $6 from calendar year 2023. The contribution amount is subject to cost of living increases as determined by the State Legislature.

In order to fund each plan’s benefits, the City Council had previously established Internal Service Funds and authorized initial transfers from the General Fund, Enterprise Funds, and other Internal Service Funds to the Longevity Recognition Benefits and PEMHCA Benefits Internal Service Funds. Currently, internal service charges are assessed to the applicable departments “receiving” Longevity and/or PEMHCA benefits.

ANALYSIS
Every two years, both the Longevity Recognition and the PEMHCA plans are subject to individual actuarial studies, with “roll-forward” work for the interim years. The studies determine the actuarially calculated liabilities, normal costs, and contributions of each plan which under Government Accounting Standards are required to be disclosed in the City/District annual financial statements. As of June 30, 2023, the City’s Longevity Benefit Plan liability and PEMHCA OPEB liability were $3.15 million and $8.78 million respectively compared to the Internal Service Fund balances of $2.66 million and $6.29 million respectively. Accounting standards do not allow Internal Service Fund assets to

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8 be used as offsets against our Longevity and PEMHCA OPEB liabilities. Therefore, the City’s Balance Sheet includes the “full” obligations. The City Council has expressed an interest in establishing and funding IRC Section 115 irrevocable trusts for its Longevity and PEMHCA OPEB plans. Therefore, City staff plans to bring forth providers for City Council’s consideration in the 1st quarter of FY 2024-25.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable

FISCAL IMPACT
The proposed FY 2024-25 expenditure budget for the Longevity Recognition and PEMHCA Benefit Internal Service Funds are $232,720 and $267,760 respectively, inclusive of actuarial valuations preparation expenditures. The proposed Internal Service charges to City departments are $222,720 (Attachment 2) and $257,760 respectively (Attachment 3). They represent a decrease of $5,700 for the Longevity Plan and a $21,917 increase for the PEMHCA plan from the prior year.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
ATTACHMENTS:

Attachment 1 - Longevity Recognition and PEMHCA Benefit Fund Budget Comparison Attachment 2 - Longevity Assessment Charges to Departments Attachment 3 - PEMHCA Assessment Charges to Departments

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Projected
FY
2023-24
Proposed
FY 2024-25
Increase
(Decrease) Notes
Fund Balance, Beginning of Year 2,660,354$ 2,781,834$ Assessments charged for benefits earned 228,420 222,720 (5,700) 1 Investment Income 131,480 97,360 (34,120) 2 Benefits payments (228,420) (222,720) (5,700) 3 Actuarial valuation (10,000) (10,000) - Projected Fund Balance, End of Y
ear 2,781,834$ 2,869,194$
Detailed Analysis:

Increase
(Decrease)
Rounded to
nearest $100
Note 1 (Assessments charged)
(5,700)
Note 2 (Investment Income)
(34,100)
Note 3 (Benefit Payments)
(5,700)
Projected
FY 2023-24
Proposed
FY 2024-25
Increase
(Decrease) Notes
Fund Balance, Beginning of Year 6,287,275$ 6,591,995$ Assessments charged for benefits earned 235,843 257,760 21,917$ 1 Investment Income 314,720 230,720 (84,000) 2 Benefits payments (235,843) (257,760) 21,917 3 Actuarial valuation (10,000) (10,000) - Projected Fund Balance, End of Y
ear 6,591,995$ 6,812,715$
Detailed Analysis:

Increase
(Decrease)
Rounded to
nearest $100
Note 1 (Assessments charged)
21,900
Note 2 (Investment Income) (84,000)
Note 3 (Benefit Payments)
21,900 Increase in the estimated number of retirees receiving benefits Longevity Benefits Plan Comparison - Fund 507
Anticipated reduction in the number of participants from the prior year Anticipated reduction in the number of participants from the prior year Public Employees' Medical and Hospital Care Act (PEMHCA) Benefits Plan Comparison - Fund 508
Increase in assessment is based on increase in benefit payments FY 2023-24 is expected to end strong with approximately 5% average returns. However, a conservative 3.5% investment returns are estimated for FY2024-25.

FY 2023-24 is expecting to end strong with approximately 5% average returns. However, a conservative 3.5% investment returns are estimated for FY2024-25.

4.9 Attachment 1 - Longevity and PEMHCA Plan Proposed Budget - Annual Comparison

216

LONGEVITY RECOGNITION BENEFITS PLAN ISF ASSESSMENT CHARGES FY 2024-25 Department Charged
Approved
FY 2023-24
Proposed
FY 2024-25
Increase
(Decrease)
0510 RECREATION ADMIN 5,550 $ 5,550 -
0520 PARKS MAINTENANCE
750 $ 750 -
0610 PD CHIEF'S OFFICE
16,740 $ 16,740 -
0620 PD FIELD OPS
74,760 $ 74,760 -
0630 PD ADMIN
23,820 $ 23,820 -
0750 FIRE
94,800 $ 94,800 -
0810 CDD PLANNING ADMIN
4,200 $ - (4,200)
0920 PW LAGOONS & LEVEES
6,300 $ 6,300 -
1110 FINANCE ADMIN
1,500 $ - (1,500)

TOTAL ALL FUNDS
228,420 222,720 (5,700)
Note: Charges are based on an estimate of retirees receiving benefits in FY 2024-25. Above changes reflect changes in the number of employees receiving benefits.

4.9 Attachment 2 - Longevity Assessment Charges

217

Approved
Proposed Increase
Department Charged FY 2023-24 FY 2024-25 (Decrease)
0110 CITY/DISTRICT MANAGER $ 7,296 $ 7,680 $ 384 0210 COMMUNICATIONS/CITY CLERK 5,472 5,760 288 0510 RECREATION 7,296 7,680 384 0520 PARKS 21,888 24,960 3,072
0525 PARKS - 1,920
1,920
0610 POLICE 7,296 7,680
384
0620 POLICE 29,184 32,640 3,456
0630 POLICE 16,416 17,280 864 0750 FIRE 38,304 40,320 2,016
0810 COMMUNITY DEVELOPMENT 7,296 7,680 384 0811 COMMUNITY DEVELOPMENT 1,094 1,152 58 0812
COMMUNITY DEVELOPMENT 1,733 1,824 91
0813
COMMUNITY DEVELOPMENT 365 384 19 0820
COMMUNITY DEVELOPMENT 5,928 8,640 2,712 0910 PUBLIC WORKS 8,199 8,630 431 0920 PUBLIC WORKS 2,873 2,736 (137) 0930 PUBLIC WORKS 3,785 3,696 (89) 1027 COUNCIL/BOARD 1,824 1,920 96
1110
FINANCIAL SERVICES 7,296 7,680 384 1120 FINANCIAL SERVICES 9,120 9,600 480 1140 FINANCIAL SERVICES 1,824 1,920 96 1210
HUMAN RESOURCES 7,296 7,680 384 SUBTOTAL (GENERAL FUND) $ 191,785 $ 209,462 $ 17,677 0960 WATER ENTERPRISE 18,883 19,877 994 0970 WASTEWATER ENTERPRISE 13,411 14,117 706 0560 VEHICLE REPLACEMENT ISF 2,234 2,352 118 0160 INFORMATION TECHNOLOGY ISF 5,472 7,680 2,208 0550 BUILDING MAINTENANCE ISF 4,058 4,272 214 TOTAL ALL FUNDS $ 235,843 $ 257,760 $ 21,917

PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL
CARE ACT (PEMHCA) ISF CHARGES, FY 2024-25

1. The assumed average PEMHCA monthly rate for FY 2023-24 and 2024-25 is $160 for both years. Charges are also affected by the estimated number of retirees receiving benefits in FY 2024-25.

NOTES:

4.9 Attachment 3 - PEMHCA Assessment Charges

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5 5
7 DATE: March 25, 2024

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

FROM: Edmund Suen, Finance Director
‘Andra Lorenz, Principal Management Analyst
DEPARTMENT: Finance
SUBJECT: EQUIPMENT REPLACEMENT FUND BUDGET AND INTERNAL SERVICE CHARGES FOR FY 2024-2025

RECOMMENDATION
It is recommended that the City Council review this report and its attachments and by Minute Order provide policy direction on the proposed Equipment Replacement Fund budget, including the scheduled replacement purchases and Equipment Replacement Fund charges in the FY 2024-2025 Preliminary Budget as outlined.

EXECUTIVE SUMMARY
The Equipment Replacement Fund was developed for the purpose of reserving the funding needed to replace high-value assets. These assets are listed along with their anticipated replacement costs and estimated useful lives and then funding is set aside each year in an amount adequate to fund the replacement at the identified time. Every asset was reviewed, and replacement values and useful life estimates were adjusted with the best information currently available about each asset. The total budget for the replacement of items in FY 2024-2025 is $934,650 and the total budget transfer to the Equipment Replacement Funds is $1,670,555. There is sufficient fund balance available for these items.

BACKGROUND

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5 5
7 The Equipment Replacement Fund was developed for the purpose of reserving the funding needed to replace high-value assets. There are three Equipment Replacement Fund lists, one each for the General Fund, Water Enterprise Fund, and Wastewater Enterprise Fund. General Fund Equipment Replacements reside in the Internal Services fund group. The Water and Wastewater Equipment Replacements reside in their respective Enterprise Fund groups. Changes to the fund asset listings are summarized in the attachments to this report.

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

Attached are the summary spreadsheets for the Equipment Replacement Fund. There are no significant changes to the fund assets.

CEQA
Not Applicable

FISCAL IMPACT
There are two budget impacts associated with the Equipment Replacement Fund:
•Budgeted cost to replace assets that have reached the end of their useful lives; and
•Annual transfer to reserve funding for future replacements (replacement charge) Assets for Replacement
The funding to replace assets that have reached the end of their useful lives is appropriated in the respective Equipment Replacement Funds. The replacement value of assets that are scheduled for replacement in FY 2024-2025 is summarized in Table 1.

Table 1: Budget for Purchase of Assets Scheduled for Replacement Fund Replacement Reference
General 566,300$ Attachment 5
Water Enterprise 226,000$ Attachment 12
Wastewater Enterprise 142,350$ Attachment 19
Total 934,650$

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7 Annual Replacement Charges
Replacement charges are the functional mechanism by which funding for assets is transferred from the General, Water and Wastewater Operating Funds to the respective Equipment Replacement Funds so that funding is available when an asset reaches the end of its useful life. Replacement charges are budgeted in the Department line items for those assets assigned to them. Replacement charges vary by year, based on purchase cycles and annual analysis of the asset costs.

Since FY 2013-14, only 85% of the total projected replacement cost has been charged back to departments for the General Fund. Because the annual replacement charge calculation does not take into consideration interest earnings in the fund and cost savings associated with purchases, this fund tends to experience a growing unassigned reserve balance. Using an 85% charge-back methodology reduces the impact of equipment replacement to the General Fund while maintaining a sufficient balance to accomplish the necessary purchases.

For FY 2024-2025, the difference between 100% and 85% chargeback methodologies is approximately $133,000. Based on a similar fund balance analysis for the Water and Wastewater Enterprise Funds, balances were not excessive, so staff does not propose a replacement charge reduction in these funds.

Although the chargebacks were calculated and are listed below in Table 2, the City Council directed that chargebacks to the General Fund be suspended for FY 2023-2024. Therefore, transfers to Fund 502 were not executed and the $439,194 listed below will be assigned to items from the Fund 502 balance.

Table 2 summarizes the annual replacement charges for FY 2024-2025, and a general overview of the reasons for the changes in Replacement Charge is included below.

Table 2: Equipment Replacement Fund Annual Replacement Charge Summary - All Funds Fund FY 2023-24 FY 2024-25 Increase (Decrease) % Change ReferenceGeneral (85%) 439,194 751,554 312,360 71%Attachment 4Water 448,097 456,767 8,670 2%Attachment 11Wastewater 342,955 462,234 119,279 35%Attachment 18Totals 1,230,246 1,670,555 440,309 36% •General Fund. There were several major adjustments to replacement costs in this year’s review of the General Fund assets. A complete list can be found in Attachment 8, but highlights include the realignment of Recreation assets to provide funding for furniture and fixtures associated with the rebuild of the Recreation Center, the comprehensive review and update of the replacement cost for PD communications equipment, and the update of the cost to replace the City’s traffic signal controllers. •Water Fund. The changes to the replacement charge in the Water Division were insignificant and related to general updates to individual items.

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7 •Wastewater Fund. The Wastewater Fund replacement charges increased due to significant increases in the cost to replace pumps as well as the realignment of all Lift Station generators to a standard useful life.

Fund Balances
Table 3 shows that there is sufficient funding for the amount committed to the replacement of identified equipment through the end of FY 2023-2024 based upon a Finance Department Mid-Year Financial analysis.

Table 3: Equipment Replacement Fund Excess Balance Analysis Fund
Projected
Balance
6/30/2024
Fund
Requirements
6/30/2024
Contingency
Reserve
Excess
Balance
General Fund 6,689,496 (5,505,166)$ (100,000)$ 1,084,330$ Water Fund 4,112,780 (4,289,251)$ -$ (176,471)$ Wastewater Fund 2,424,428 (2,277,929)$ -$ 146,499$ Based on the above discussion of the fund balance, the Equipment Replacement Funds for the General Fund and Wastewater Fund are adequately funded. While the Water Fund is somewhat under the funding requirement, staff advises a “wait and see” approach over the next fiscal year. Staff will continue to monitor the Fund balances to ensure that adequate funding remains available to address the needs of the operation.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
Public Safety and Social Equity

ATTACHMENTS
General Fund Details
Attachment 1 – Equipment Replacement Fund Budget Narrative Attachment 2 – Equipment Replacement Fund Expenses
Attachment 3 – Equipment Replacement Fund – General Fund Variance Analysis Attachment 4 – Internal Service Fund Charges Equipment Replacement Fund 502 Attachment 5 – Items to be Replaced
Attachment 6 – Items Added To or Deleted From the Equipment Replacement List Attachment 7 – Changes to Estimated Useful Lives
Attachment 8 – Changes to Replacement Values
Water Enterprise Fund Details
Attachment 9 – Water - Equipment Replacement Fund Expenses Attachment 10 – Equipment Replacement Fund – Water Fund Variance Analysis Attachment 11 – Internal Service Fund Charges Equipment Replacement Fund 408 Attachment 12 – Items to be Replaced
Attachment 13 – Items Added To or Deleted From the Equipment Replacement List

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5 5
7 Attachment 14 – Changes to Estimated Useful Lives
Attachment 15 – Changes to Replacement Values
Wastewater Collection Enterprise Fund
Attachment 16 – Wastewater - Equipment Replacement Fund Expenses Attachment 17 – Equipment Replacement Fund – Wastewater Fund Variance Analysis Attachment 18 – Internal Service Fund Charges Equipment Replacement Fund 458 Attachment 19 – Items to be Replaced
Attachment 20 – Items Added To or Deleted From the Equipment Replacement List Attachment 21 – Changes to Estimated Useful Lives
Attachment 22 – Changes to Replacement Values

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Attachment 1
Equipment Replacement Fund
This fund was established to provide for the timely and orderly replacement of equipment valued over $1,000. This internal service fund allows the City to plan ahead for the replacement of its equipment. The expenditure figure represents the schedule of equipment to be replaced during the fiscal year and deemed to be in need of replacement.

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

This fund accounts for replacement of assets other than those assets related to Water Operations or Wastewater Operations (which are accounted for in those respective Enterprise funds), or those assets specifically relating to the activities of Vehicle Replacement, Information Technology, and Building Maintenance

4.10 Attachment 1 - Equipment Replacement Fund Budget Narrative

224

Attachment 2
Account Name Account String 2023-24
Approved
2024-2025
RecommendedItemization status Difference
TOOLS & EQUIP(<5000@ITEM) 502-0110-413-42-45 16,900 3,500 Non-Itemized Account (13,400) MACHINERY & EQUIP >5000 502-0110-413-43-85 437,300 577,800 Itemized Account Equipment Replacement - GF 502-0110-413-43-85 387,300 527,800 Itemization 140,500 Emergency Replacement 502-0110-413-43-85 50,000 50,000 Itemization - FC PEG CHANNEL CAPITAL 502-0110-413-43-87 75,300 35,000 Non-Itemized Account (40,300) 529,500 616,300 86,800
Meta Information:

Expenses
Worksheet: 502 - Equipment Replacement Fund Expenses
Proposal: 502 - Equipment Replacement Fund
Budget: FY 2024-25 5 YEAR EXPENDITURE BUDGET

4.10 Attachment 2 - Equipment Replacement Fund Expenses

225

Attachment 3
Equipment Replacement Fund - General Fund
Account Description
Approved
FY 2022-2023
Requested
FY 2023-2024
Increase
(Decrease) Notes
4245 Tools and Equipment 16,900 3,500 (13,400) 1 4385 Equipment Replacement - General Fund 437,300 577,800 140,500 1 4387 Equipment Replacement - PEG Equipment 75,300 35,000 (40,300) 1 529,500 616,300 86,800
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet

4.10 Attachment 3 - Equipment Replacement Fund General Fund Variance Analysis

226

Attachment 4

INTERNAL SERVICE FUND CHARGES
EQUIPMENT REPLACEMENT FUND 502
Approved
FY 2023-24
Requested
FY 2024-25 Variance Notes
0230 Comm/Clerk Communications 23,215 29,083 5,868 1 0510 Park & Rec Admin 15,573 38,140 22,567 2 0520 Parks Maint 160,211 155,235 (4,976) 3 0525 Facilities 5,974 19,049 13,075 4 0620 PD Field Ops 38,086 44,221 6,135 5 0630 PD Admin 43,484 271,543 228,059 6 0740 City Manager EOC 2,924 2,924 - 7 0920 PW Lagoons & Levees 63,143 63,104 (39) 8 0930 PW Streets 76,132 120,143 44,011 9 1010 Council 8,911 6,843 (2,068) 10 1110 Finance Administration 181 181 - 11 1210 HR Admin 1,360 1,088 (272) 12 Total General Fund 439,194 751,554 312,360
Detailed Analysis
Note 1 Planned replacement of 7 fully funded assets has restarted the funding cycle.

Note 2 9 items adjusted to align with RC project; add wireless speaker; increase marquee cost Note 3 Addition of woodchipper and chainsaw offset by extending life of 14 items Note 4 13 items aligned with RC project; add Vibe furniture; increase cost of tables and chairs Note 5 Planned replacement of fully funded assets restarted the funding cycle.

Note 6 Significant increases to cost of radios, repeaters, comms infrastructrue and console digital interface Note 7 No change
Note 8 Extended the useful life of Color Meter
Note 9 Addition of portable air compressor and significant increase in the replacement cost of signal controllers Note 10Extended useful life of Council Chambers Conference Room Tables Note 11No change
Note 12Replacement of equipment restarted funding on two items.

Department Charged (Receiving
Goods/Services)

4.10 Attachment 4 - Internal Service Fund Charges Equipment Replacement Fund 502

227

Attachment 5
City of Foster City Equipment Replacement Fund - General Fund Items to be Replaced
For the Year Ended June 30, 2025
Department Item Description
Replacement
Cost
05-20 Drain (Snake) Cleaning Machine 3,500 Total Tools and Equipment up to $5,000 3,500$
Department Item Description
Replacement
Cost
05-20 Playground Equipment - SHAD PARK 135,000 05-20 Playground Equipment - SUNFISH PARK 200,000 06-20 Body-Worn Cameras 57,000
06-20 Lidar Guns (3) 10,800
06-20 Tasers (31) 90,000
09-30 CURB PAINTING MACHINE 20,000 09-30 PORTABLE AIR COMPRESSOR (1/3 each W/W/GF) 15,000 Total Capital Outlay - Machinery and Equipment Over $5,000527,800$ Department Item Description
Replacement
Cost
02-30 Crestron Control System (Programming) 35,000 Total PEG Funding Eligible Items 35,000$
TOTAL (ALL ITEMS) 566,300$

4.10 Attachment 5 - Items to Be Replaced

228

Attachment 6
City of Foster City
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
Wireless Speaker System 05-10 2021 3,000
Chainsaw 05-20 2022 1,500
Woodchipper 05-20 2022 5,500
Vibe Lounge Furniture 05-25 2022 2,500
Portable Air Compressor 09-30 2011 15,000
Signal Controllers (4 - CIP 681) 09-30 2022 80,000
Signal Controllers (3 - Gilead+3rd/LCD) 09-30 2017 60,000 Total $ 167,500
Description
Depart
ment
Date
Purchased
Replacement
Value Comments (if any)
Items Deleted
NONE
Total $ -
Total Replacement Value Impact 167,500$
Equipment Replacement Fund (General Fund)
Items Added To or Deleted From the Equipment Replacement List For FY 2024-2025

4.10 Attachment 6 - Items Added To or Deleted from the Equipment Replacement List

229

Attachment 7
City of Foster City
Equipment Replacement Fund (General Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful
Life
(Years)
Revised
Useful
Life
(Years)
Increase
(Decrease)
Council Chambers Tables (6) 10-10 2002 22 24 2 Crestron Control System (Programming) 02-30 2020 5 4 (1) Recreation Center Freezer (Double) 05-10 2014 12 11 (1) Dishwasher-Bluebird 05-10 2010 13 15 2
Dishwasher-Lagoon 05-10 2010 16 15 (1)
Electric Kiln 1 05-10 2009 17 16 (1)
Electric Kiln 2 05-10 2013 13 12 (1)
Marquee 05-10 2015 11 10 (1)
Oven/Stove - Bluebird 05-10 2014 12 11 (1)
Oven/Stove - Lagoon 05-10 2014 12 11 (1)
Piano 05-10 2016 21 10 (11)
Security Camera System (RC, Sr Ctr, Vibe) 05-10 2014 12 11 (1) BILLY GOAT BLOWER/Ryan B 05-20 2010 14 15 1
DITCH WITCH TRENCHER/ CY 05-20 2016 10 11 1
Drain (Snake) Cleaning Machine 05-20 2015 11 9 (2) Graco Field Lazer SCP #1 05-20 2020 6 8 2
Graco Field Lazer SCP #2 05-20 2013 12 14 2
John Deere Elec. Utility Vehicle/ Ryan Park (TE)05-20 2015 10 11 1 John Deere Field Groomer/ SCP (TS) 05-20 2023 5 9 4 Magnum Water Tank Trailer 500 Gal CY Bay/ CY05-20 2004 21 23 2 Mower #4 - Toro Z 05-20 2017 7 8 1
Mower #6 - Toro Z 05-20 2017 7 8 1
Mower #8 - Toro Z 05-20 2017 7 8 1
Playground Equipment - BOOTHBAY PARK FAMILY LOT05-20 2003 22 23 1 Playground Equipment - RECREATION CENTER TOT LOT05-20 2000 26 25 (1) Playground Equipment - SHAD PARK 05-20 2004 19 20 1 Playground Equipment - SUNFISH PARK 05-20 2004 19 20 1 Shade Structures (2) - SHOREBIRD PARK 05-20 2018 8 10 2 8-foot Tables - Gull/Spirit 05-25 2016 10 9 (1) 8-foot Tables - Lagoon 05-25 2017 9 8 (1)
8-foot Tables - Crane/Mist 05-25 2013 13 12 (1) 8-foot Tables - Bluebird/Spray 05-25 2014 12 11 (1) 8-foot Tables - Mallard 05-25 2015 11 10 (1)
6-foot tables (15) – (Vibe) 05-25 2016 10 9 (1) 6-foot tables (12) - (Sr. Wing) 05-25 2016 8 9 1 Regular use chairs (80) – (Vibe) 05-25 2016 8 9 1 Oval Tables -- Pool A (5) 05-25 2017 9 8 (1) Oval Tables -- Pool B (4) 05-25 2010 16 15 (1) Oval Tables -- Pool C (2) 05-25 2019 7 6 (1) Oval Tables -- Pool D (2) 05-25 2020 6 5 (1) Regular Use Chairs -- Pool B (116) 05-25 2007 19 18 (1) Lidar Guns (3) 06-20 2017 6 7 1
Communications Infrastructure 06-30 2001 23 24 1 Metal Safe 5 ft. 06-30 1985 39 41 2
Mobile Radio (20) 06-30 2012 12 13 1
Motor Cycle Radios 06-30 2012 12 13 1
PD Portable Radios (56) 06-30 2012 12 13 1
For FY 2024-2025

4.10 Attachment 7 - Changes to Estimated Useful Lives

230

City of Foster City
Equipment Replacement Fund (General Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful
Life
(Years)
Revised
Useful
Life
(Years)
Increase
(Decrease)
For FY 2024-2025
Video Survellance Equip - Police Station 06-30 2016 8 9 1 COLOR METER for Lagoon Water 09-20 2015 11 13 2 CURB PAINTING MACHINE 09-30 2009 17 15 (2)
PAINT SPRAYER-AIRLESS 09-30 2017 9 11 2
PORTABLE AIR COMPRESSOR (1/3 each W/W/GF)09-30 2011 15 13 (2) PORTABLE GENERATOR 09-30 2017 9 11 2
Signal Controllers (24) 09-30 2006 18 19 1

4.10 Attachment 7 - Changes to Estimated Useful Lives

231

Attachment 8
City of Foster City
Equipment Replacement Fund (General Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
Council Chambers Tables (6) 10-10 2002 7,000 8,000 1,000 Marquee 05-10 2015 60,000 75,000 15,000 Oven/Stove - Bluebird 05-10 2014 9,000 10,500 1,500 Oven/Stove - Lagoon 05-10 2014 9,000 10,500 1,500 Piano 05-10 2016 3,000 4,000 1,000 John Deere Field Groomer/ SCP (TS) 05-20 2023 13,500 22,000 8,500 8-foot Tables - Gull/Spirit 05-25 2016 5,500 6,500 1,000 8-foot Tables - Lagoon 05-25 2017 6,250 10,000 3,750 8-foot Tables - Crane/Mist 05-25 2013 4,200 5,000 800 8-foot Tables - Bluebird/Spray 05-25 2014 8,400 9,000 600 8-foot Tables - Mallard 05-25 2015 5,250 6,000 750 Regular use chairs (80) – (Vibe) 05-25 2016 3,520 6,000 2,480 Community Center Wind Room Chairs (120)05-25 2012 9,000 11,000 2,000 Oval Tables -- Pool A (5) 05-25 2017 3,145 4,000 855 Oval Tables -- Pool C (2) 05-25 2019 1,250 2,000 750 Oval Tables -- Pool D (2) 05-25 2020 1,250 2,000 750 Oval Tables -- Pool E (7) 05-25 2022 6,000 10,000 4,000 Ballistic Shields (2) 06-20 2016 4,000 4,500 500 Communications Infrastructure 06-30 2001 275,000 300,000 25,000 Console Digital Interface - Police Station 06-30 2000 25,000 214,000 189,000 Mobile Radio (20) 06-30 2012 46,000 60,000 14,000 Motor Cycle Radios 06-30 2012 5,000 10,000 5,000 PD Portable Radios (56) 06-30 2012 107,000 130,000 23,000 Repeaters (Primary and Secondary) - Fire Station06-30 2012 51,000 80,000 29,000 Repeater (Primary) - Sea Cloud Park 06-30 2012 16,000 20,000 4,000 Repeater (Primary) - Third Ave 06-30 7/3/1905 27,000 40,000 13,000 Signal Controllers (24) 09-30 2006 372,000 480,000 108,000 TOTAL 1,083,265 1,540,000 456,735
For FY 2024-2025

4.10 Attachment 8 - Changes to Replacement Values

232

Attachment 9
Account Name Account String 2023-24
Approved
2024-2025
RecommendedItemization status Difference
MACHINERY & EQUIP >5000408-0110-413-43-85 249,000 226,000Non-Itemized Account(23,000) 249,000 226,000 (23,000)
Meta Information:

Expenses
Worksheet: 408 - Water - Equipment Replacement Fund Expenses Proposal: 408 - Water - Equipment Replacement Fund
Budget: FY 2024-25 5 YEAR EXPENDITURE BUDGET

4.10 Attachment 9 - Water Equipment Replacement Fund Expenses

233

Attachment 10
Equipment Replacement Fund - Water Fund
Account Description
Approved
FY 2023-2024
Requested
FY 2024-2025
Increase
(Decrease) Notes
4385 Machinery and Equipment - Water Fund 249,000 226,000 (23,000) 1 249,000 226,000 (23,000)
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet

4.10 Attachment 10 - Equipment Replacement Fund Water Fund Variance Analysis

234

Attachment 11

INTERNAL SERVICE FUND CHARGES
WATER EQUIPMENT REPLACEMENT FUND 408
Approved
FY 2023-24
Requested
FY 2024-25 Variance Notes
401-0960 Water Distribution System 448,097 456,767 8,670 1 Total Water Fund 448,097 456,767 8,670 Detailed Analysis
Note 1 Added Portable Air Compressor and adjusted replacement values by a total of $370,000 Department Charged (Receiving Goods/Services)

4.10 Attachment 11 - Internal Service Fund Charges Equipment Replacement Fund 408

235

Attachment 12
City of Foster City -- Equipment Replacement Fund (Water) Items to be Replaced
For the Year Ended June 30, 2025
Department Item Description
Replacement
Cost
09-60* GENERATOR - HONDA PORTABLE 3,000 09-60* HONDA EB3000C GENERATOR - UNIT 20 2,500 09-60* HONDA EB3000C GENERATOR - UNIT 21 2,500 09-60* SUBMERSIBLE PUMP 2,000
TOTAL Tools and Equipment up to $5,000 Per Unit 10,000
Department Item Description
Replacement
Cost
09-60* METER READ TOWER RECEIVER (City Hall) 45,000 09-60* PORTABLE AIR COMPRESSOR (1/3 each W/WW/GF) 13,500 09-60* Large (4" 6" 8") Meter with Radio Heal Pool C 157,500 Total Capital Outlay - Machinery and Equipment Over $5,000216,000 TOTAL (ALL ITEMS) 226,000

4.10 Attachment 12 - Items to be Replaced

236

Attachment 13
City of Foster City
Equipment Replacement Fund (Water Fund)
Items Added To or Deleted From the Equipment Replacement List Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
EMERGENCY BYPASS PIPE TRAILER 09-60* 2022 15000
PORTABLE AIR COMPRESSOR 09-60* 2011 13,500 Shared between General, Water, Wastewater Funds
TUFF SHED 09-60* 2022 12,000
Added Total $ 40,500
Items Deleted
4" PORT METER TESTER 09-60* 2000 15,000
Removed Total $ 15,000
Total Replacement Value Impact 25,500$
For FY 2024-2025

4.10 Attachment 13 - Items Added to or Deleted from the Equipment Replacement List

237

Attachment 14
City of Foster City
Equipment Replacement Fund (Water Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful Life
(Years)
Revised
Useful Life
(Years)
Increase
(Decrease)

GAS ENGINES EMISSIONS
ANALYZER 09-60* 2019 23 20 (3)

METER READ TOWER RECEIVER
(City Hall) 09-60* 2008 15 16 1
PORTABLE AIR COMPRESSOR (1/3
each W/WW/GF) 09-60* 2011 15 13 (2)
Large (4" 6" 8") Meter with Radio Heal
Pool C 09-60* 2009 14 15 1
For FY 2024-2025

4.10 Attachment 14 - Changes to Estimated Useful Lives

238

Attachment 15
City of Foster City
Equipment Replacement Fund (Water Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
ARROW BOARD 09-60* 2014 10,000 13,000 3,000 BRIDGE CRANE 15000# 09-60* 1965 75,000 80,000 5,000 WATER METER REPLACEMENT - EMERGENCY POOL A09-60* 2019 46,000 48,300 2,300 WATER METER REPLACEMENT - EMERGENCY POOL B09-60* 2020 46,000 48,300 2,300 WATER METER REPLACEMENT - EMERGENCY POOL C09-60* 2021 46,000 48,300 2,300 WATER METER REPLACEMENT - EMERGENCY POOL D09-60* 2022 46,000 48,300 2,300 WATER METER REPLACEMENT - EMERGENCY POOL E09-60* 2023 44,100 46,305 2,205 3/4" Measuring Chamber Register with Radio Read Heads POOL A09-60* 2007 641,552 673,629 32,078 3/4" Measuring Chamber Register with Radio Read Heads POOL B09-60* 2008 605,681 635,965 30,284 3/4" Measuring Chamber Register with Radio Read Heads POOL C09-60* 2009 392,026 411,628 19,601 3/4" Measuring Chamber Register with Radio Read Heads POOL D09-60* 2010 551,328 578,894 27,566 3/4" Measuring Chamber Register with Radio Read Heads POOL E09-60* 2011 823,169 864,328 41,158 3/4" Measuring Chamber Register with Radio Read Heads POOL F09-60* 2012 861,482 904,556 43,074 1" Meter with Radio Head POOL A 09-60* 2007 6,237 6,549 312 1" Meter with Radio Head POOL B 09-60* 2008 14,552 15,279 728 1" Meter with Radio Head POOL C 09-60* 2009 67,977 71,376 3,399 1" Meter with Radio Head POOL D 09-60* 2010 43,774 45,963 2,189 1" Meter with Radio Head POOL E 09-60* 2011 67,747 71,134 3,387 1" Meter with Radio Head POOL F 09-60* 2012 66,506 69,831 3,325 1-1/2" Meter With Radio Head POOL B 09-60* 2008 8,053 8,455 403 1-1/2" Meter With Radio Head POOL C 09-60* 2009 55,514 58,289 2,776 1-1/2" Meter With Radio Head POOL D 09-60* 2010 12,221 12,832 611 1-1/2" Meter With Radio Head POOL E 09-60* 2011 4,373 4,592 219 1-1/2" Meter With Radio Head POOL F 09-60* 2012 2,618 2,749 131 2" Meter With Radio Head POOL A 09-60* 2007 9,674 10,158 484 2" Meter With Radio Head POOL B 09-60* 2008 193,478 203,152 9,674 2" Meter With Radio Head POOL C 09-60* 2009 132,523 139,150 6,626 2" Meter With Radio Head POOL D 09-60* 2010 47,217 49,577 2,361 2" Meter With Radio Head POOL E 09-60* 2011 36,326 38,142 1,816 2" Meter With Radio Head POOL F 09-60* 2012 20,843 21,886 1,042 3" Meter with Radio Head POOL B 09-60* 2008 10,763 11,301 538 3" Meter with Radio Head POOL C 09-60* 2009 33,493 35,167 1,675 3" Meter with Radio Head POOL D 09-60* 2010 49,097 51,552 2,455 3" Meter with Radio Head POOL E 09-60* 2011 49,097 51,552 2,455 3" Meter with Radio Head POOL F 09-60* 2012 108,077 113,481 5,404 Large (4" 6" 8") Meter with Radio Heal Pool A 09-60* 2021 157,500 200,000 42,500 Large (4" 6" 8") Meter with Radio Heal Pool B 09-60* 2022 150,000 200,000 50,000 Extra Large (10") Meter with Radio Head Pool A 09-60* 2011 23,100 24,255 1,155 5,559,097$ 5,917,927$ 358,830$
*Water Meters are calculated to increase by 5% per year.

For FY 2024-2025

4.10 Attachment 15 - Changes to Replacement Values

239

Attachment 16
Account Name Account String 2023-2024
Approved
2024-2025
RecommendedItemization status Difference
MACHINERY & EQUIP >5000458-0110-413-43-85 391,850 142,350Non-Itemized Account(249,500) 391,850 142,350 (249,500)
Meta Information:

Expenses
Worksheet: 458 - Wastewater - Equipment Replacement Fund Expenses Proposal: 458 - Wastewater - Equipment Replacement Fund Budget: FY 2024-25 5 YEAR EXPENDITURE BUDGET

4.10 Attachment 16 - Wastewater Equipment Replacement Fund Expenses

240

Attachment 17
Equipment Replacement Fund - Wastewater Fund
Account Description
Approved
FY 2023-2024
Requested
FY 2024-2025
Increase
(Decrease) Notes
4385 Machinery and Equipment - Wastewater Fund 391,850 142,350 (249,500) 1 391,850 142,350 (249,500)
Detailed Analysis:

Note 1 Detailed list of items for replacement in ERF packet

4.10 Attachment 17 - Equipment Replacement Fund Wastewater Fund Variance Analysis

241

Attachment 18

INTERNAL SERVICE FUND CHARGES
WASTEWATER EQUIPMENT REPLACEMENT FUND 458
Department Charged (Receiving Goods/Services)
Approved
FY 2023-24
Requested
FY 2024-25 Variance Notes
451-0970 Wastewater Collection System 342,955 462,234 119,279 1 Total Wastewater Fund 342,955 462,234 119,279 Detailed Analysis
Note 1 Added vault lids, increased replacement costs for pumps and realigned Lift Station Generators

4.10 Attachment 18 - Internal Service Fund Charges Equipment Replacement Fund 458

242

Attachment 19
Equipment Replacement Fund (Wastewater Collection System) Items to be Replaced
For the Year Ended June 30, 2025
Department Item Description
Replacement
Cost
None
TOTAL Tools and Equipment up to $5,000 -$
Department Item Description
Replacement
Cost
09-70* PORTABLE AIR COMPRESSOR (1/3 EACH W/WW/GF) 30,000 09-70* AIR SCRUBBER/BLOWER - LS #22 10,000 09-70* PLUG AND CHECK VALVES Pool B 32,350 09-70* Pumps (Non-LS 59) Pool I 70,000 TOTAL Capital Outlay - Machinery and Equipment Over $5,000142,350 TOTAL (ALL ITEMS) 142,350$

4.10 Attachment 19 - Items to be Replaced

243

Attachment 20
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Items Added To or Deleted From the Equipment Replacement List Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Replacement
Value Comments (if any)
Items Added
VAULT LID - LS 12 09-70* 2022 20,000
VAULT LID - LS 31 09-70* 2022 20,000
VAULT LID - LS 33 09-70* 2014 20,000
Total 60,000
Items Deleted
None
Total -$
Total Replacement Value Impact 60,000$
For FY 2024-2025

4.10 Attachment 20 - Items Added to or Deleted from the Equipment Replacement List

244

Attachment 21
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Changes to Estimated Useful Lives
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful Life
(Years)
Revised
Useful Life
(Years)
Increase
(Decrease)
LS09 - 150 KW GENERATOR 09-70* 2011 20 25 5
LS10 - 75 KW GENERATOR 09-70* 2021 28 25 (3)
LS12 - 35 KW GENERATOR 09-70* 2021 23 25 2
LS14 - 25 KW GENERATOR 09-70* 2021 23 25 2
LS15 - 50 KW GENERATOR 09-70* 2021 28 25 (3)
LS16 - 25 KW GENERATOR 09-70* 2021 23 25 2
LS22 - 155KW GENERATOR 09-70* 2021 24 25 1
LS26 - 25KW GENERATOR 09-70* 2021 34 25 (9)
LS28 - 50KW GENERATOR 09-70* 2016 20 25 5
LS29 - 230KW GENERATOR 09-70* 2021 30 25 (5)
LS34 - 30KW GENERATOR 09-70* 2011 20 25 5
LS43 - 20KW GENERATOR 09-70* 2021 34 25 (9)
LS59 - 1000KW GENERATOR 09-70* 2021 28 25 (3)
LS01 - TRANSFER SWITCH 09-70* 2019 26 25 (1)
LS09 - TRANSFER SWITCH 09-70* 2011 20 25 5
LS10 - TRANSFER SWITCH 09-70* 2021 28 25 (3)
LS12 - TRANSFER SWITCH 09-70* 2021 23 25 2
LS14 - TRANSFER SWITCH 09-70* 2021 23 25 2
LS15 - TRANSFER SWITCH 09-70* 2021 28 25 (3)
LS16 - TRANSFER SWITCH 09-70* 2021 23 25 2
LS18 - TRANSFER SWITCH 09-70* 2019 26 25 (1)
LS26 - TRANSFER SWITCH 09-70* 2011 30 35 5
LS28 - TRANSFER SWITCH 09-70* 2016 32 25 (7)
LS29 - TRANSFER SWITCH 09-70* 2021 30 25 (5)
LS34 - TRANSFER SWITCH 09-70* 2011 20 25 5
LS43 - TRANSFER SWITCH 09-70* 2016 15 30 15
LS59 - TRANSFER SWITCH 09-70* 2021 28 25 (3)
PORTABLE AIR COMPRESSOR (1/3 EACH W/WW/GF)09-70* 2011 15 13 (2) 3-PUMP35HP (incl motor) - LS #59 09-70* 2013 12 14 2
AIR SCRUBBER/BLOWER - LS #22 09-70* 1999 24 25 1
CCTV VAN VIDEO / ELECTRONIC EQUIPMENT09-70* 2017 9 11 2 DRY DECK PUMPS - LS 10 09-70* 2013 10 12 2
DRY DECK PUMPS - LS 22 09-70* 2011 13 14 1
DRY DECK PUMPS - LS 23 09-70* 2019 15 10 (5)
PLUG AND CHECK VALVES Pool B 09-70* 2000 23 24 1
PROGRAM LOGIC CONTROLLERS (50 total) 09-70* 2011 15 16 1 For FY 2024-2025

4.10 Attachment 21 - Changes to Estimated Useful Lives

245

Attachment 22
City of Foster City
Equipment Replacement Fund (Wastewater Fund)
Changes to Replacement Values
Description Dept
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Replacement
Value
Revised
Replacement
Value
Increase
(Decrease)
2-PUMPS 215HP (incl motor) - LS #5909-70* 2013 300,000 500,000 200,000 3-PUMP35HP (incl motor) - LS #59 09-70* 2013 125,000 200,000 75,000 AIR SCRUBBER/BLOWER - LS #2209-70* 1999 8,000 10,000 2,000 DRY DECK PUMPS - LS 01 09-70* 2019 65,000 100,000 35,000 DRY DECK PUMPS - LS 09 09-70* 2019 100,000 175,000 75,000 DRY DECK PUMPS - LS 10 09-70* 2013 60,000 100,000 40,000 DRY DECK PUMPS - LS 22 09-70* 2011 100,000 125,000 25,000 DRY DECK PUMPS - LS 23 09-70* 2019 40,000 75,000 35,000 DRY DECK PUMPS - LS 29 09-70* 2015 100,000 150,000 50,000 Pumps (Non-LS 59) Pool A 09-70* 2016 70,000 80,000 10,000 Pumps (Non-LS 59) Pool B 09-70* 2017 70,000 80,000 10,000 Pumps (Non-LS 59) Pool C 09-70* 2018 70,000 80,000 10,000 Pumps (Non-LS 59) Pool D 09-70* 2019 70,000 80,000 10,000 Pumps (Non-LS 59) Pool E 09-70* 2020 70,000 80,000 10,000 Pumps (Non-LS 59) Pool F 09-70* 2021 70,000 80,000 10,000 Pumps (Non-LS 59) Pool G 09-70* 2022 70,000 80,000 10,000 Pumps (Non-LS 59) Pool H 09-70* 2023 50,000 80,000 30,000 Pumps (Non-LS 59) Pool J 09-70* 2015 70,000 80,000 10,000 TOTAL 1,508,000 2,155,000 647,000 For FY 2024-2025

4.10 Attachment 22 - Changes to Replacement Values

246

DATE: March 25, 2024

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

FROM: Andrew Brozyna, Public Works Director/City Engineer Kurt Zander, Building and Vehicle Maintenance Manager
DEPARTMENT: Public Works
SUBJECT: VEHICLE REPLACEMENT FUND OVERVIEW AND INTERNAL SERVICE FUND ALLOCATIONS FOR FY 2024-2025

RECOMMENDATION
It is recommended that the City Council review this report and its attachments and direct that the budget be prepared as outlined or provide alternate policy direction regarding the development of the Vehicle Replacement Internal Service Fund budget for FY 2024-2025.

EXECUTIVE SUMMARY
There are two budget impacts associated with the Vehicle Replacement Fund: (1) expenditures associated with the Vehicle Maintenance Division operation, including the purchase of replacement vehicles (Attachment 1); and (2) the transfer of funding to support the Vehicle Maintenance Division operation and for the future replacement of vehicles, which are reallocated to each user department’s budget based upon the assignment of the vehicle (Attachment 2).

If the budget is prepared as detailed in this report, the Vehicle Maintenance Division is estimated to require the expenditure of $2,512,125 from Fund 501 Vehicle Replacement Fund in FY 2024-2025, including $745,000 for the replacement of vehicles. In addition, the budget will reflect transfers totaling $2,404,887 to the Vehicle Replacement fund budget from the General Fund and Enterprise Funds to support the maintenance

4.11 4.11 Staff Report

247

operation and the future replacement of vehicles in the fleet.

BACKGROUND
The vehicle maintenance and replacement program was created to provide proactive and effective management, maintenance, inspection, repair, and replacement of all City/District vehicles in order to ensure a consistently efficient and safe vehicle fleet of all service vehicle types through established vehicle maintenance protocols. A reliable fleet allows staff to continue to provide the highest quality service to the Foster City community.

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

As a guideline, vehicles in the City’s fleet are expected to achieve at least the following minimum useful lives, and funding is planned according to this replacement schedule.

However, it is expected for most vehicles to significantly exceed these minimums, sometimes by twice the minimum life or more.

Table 2: Minimum Useful Lives (Funding Cycle)
Vehicle Type: Funding Available After:

Police cruisers 5 years
Police motorcycles 6 years
Sedans 6-7 years
Maintenance trucks and tractors 8-13 years

ANALYSIS
The Vehicle Maintenance Division continually monitors the fleet to ensure that each vehicle continues to effectively serve the needs of the City. The vehicles are subject to on-going comprehensive evaluation of factors such as safety, life expectancy, performance, maintenance record, mileage, condition, fuel efficiency and sustainability, integrated technology, lighting, and customization to suit department operations.

Regardless of assigned useful life, vehicles are only recommended to be replaced when this analysis has demonstrated that replacement is warranted.

In Attachment 2, Internal Service Fund Charges, the distribution by division of the 79 vehicles in the City’s fleet is detailed in parenthesis. The Vehicle Maintenance Division also maintains over 400 pieces of small equipment.

Based on their age, thirty-three (33) vehicles had adequate funding for replacement in FY 2024-2025. However, Staff is recommending to replace the twelve (12) vehicles that

4.11 4.11 Staff Report

248

are listed in Attachment 1, Vehicles to be Replaced, and to extend the useful lives of the twenty-one (21) vehicles shown in Attachment 3, Changes to Estimated Useful Lives.

This recommendation is based on a thorough review of the maintenance history, usage and condition of the vehicles in question as well as an assessment of the availability in the marketplace of the types of vehicles needed. Staff does not anticipate that deferring the remaining vehicles will have a significant negative impact on City operations or on future scheduled replacements based on the overall condition of the fleet.

When vehicles are recommended for replacement, Vehicle Maintenance staff continues to evaluate fuel efficient fleet alternatives when assessing the choice of replacement vehicles. The vehicle inventory currently includes four (4) Toyota Prius hybrids, two (2) Ford C-Max hybrids, one (1) Ford Escape hybrid and one (1) Ford Focus electric vehicle.

The City has entered into an agreement with Peninsula Clean Energy to participate in their GovEV program that will assist the City to create a long-term plan for the installation of charging infrastructure and the future purchase of electric fleet vehicles in conformance with regulations of the California Air Resources Board and other regulatory agencies.

Staff routinely monitors fuel costs, and, despite the affect that the economy is having on fuel prices, Staff anticipates that the current fuel budget is adequate. The average fuel cost per gallon in 2023 was $3.65 (unleaded) and $4.23 (diesel), which was 8% lower (unleaded) and 4% higher (diesel) than average 2022 prices.

CEQA
Not Applicable

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

The expenditures for the Vehicle Maintenance operation are found in the Vehicle Maintenance Division budget, including staffing, maintenance supplies, replacement of vehicles, insurance and fuel for the vehicle fleet. The total recommended budget for the Vehicle Maintenance operation is $2,512,125 (Attachments 4 and 5).

The second budget impact is transfers from the General and Enterprise Funds to the Vehicle Maintenance Fund to fund the Vehicle Maintenance operation. The cost for the Vehicle Maintenance Division operations is distributed among the various departments and funds based upon the number of vehicles that are assigned to them.

Transfers also account for the future replacement of vehicles. The total recommended transfer for future replacement of vehicles is $737,763. This cost is distributed among the various departments and funds based upon the number and type of vehicles that are assigned to them.

4.11 4.11 Staff Report

249

Since FY 2014-15, only 85% of the total projected vehicle replacement costs are charged back to departments. Because of interest earnings, cost savings associated with purchases and revenue from the sale of replaced vehicles, this fund tends to experience a growing reserve balance. Employing a discounted charge-back methodology reduces the impact to the General Fund while maintaining a sufficient balance to accomplish the necessary vehicle and vehicle maintenance division equipment purchases.

In Fiscal Year 2023-2024, the City Council approved a transfer that was less than the calculated proposed amount. Any proposed transfer that was greater than the previous year was frozen at the previous year’s amount. A summary of the total fiscal impact as distributed among funds is shown in Table 3. Details are shown in the attachments to this report.

Table 3: Vehicle Replacement Fund Annual Replacement Charge (Transfer) Summary – All Funds Fund
Proposed
FY 23-24
Approved
FY 23-24 ^
Recommended
FY 24-25
Increase
(Decrease)
Prop vs Rec
General 1,605,587 1,207,995 1,567,657 (37,930)
Water 198,050 198,050 232,672 34,622
Wastewater 427,534 427,534 531,657 104,123
ISF-Building 103,394 103,394 72,901 (30,493)
Totals 2,334,565 1,936,973 2,404,887 70,322
^ Council approved freezing or reducing transfers in FY 23-24 The increase in allocation charges shown in Table 3 is due largely to the overall increase in the cost of the Vehicle Maintenance operation, summarized below and detailed in Attachment 5, which includes the addition of a Fleet Supervisor position in the Vehicle Maintenance division. The Fleet Supervisor job classification was approved by the City Council by Resolution 2023-121 on December 18, 2023 (Attachment 9). Staff will be providing additional details of this as well as any other proposed personnel additions/changes at the next budget study session on May 13, 2024 when we discuss the overall preliminary FY 2024-2025 City/EMID budget. This cost is offset, in large part, by a notable reduction in many divisions’ replacement charges related to the resetting of the annual charge upon the recommended purchase of twelve (12) vehicles in FY 2024- 2025.

Attachment 4, Vehicle Replacement Fund Budget Comparisons, shows that the overall cost of the vehicle maintenance operation budget increased by 72% ($1,054,069) due to the following changes:
$242,480 Increase in personnel costs due to the addition of a Fleet Supervisor position as well as regular cost of living adjustments for assigned staff. $745,000 The cost to purchase the recommended 12 vehicles in FY 2024-2025 compared to no vehicles replaced in FY 2023-2024.

4.11 4.11 Staff Report

250

$73,250 Increase in insurance costs.
($6,600) Other minor adjustments in supplies and services.

Staff routinely monitors fund balances to ensure that adequate funds are available. Based on the Mid-Year Financial Review calculations from the Finance Department outlined in the Internal Service Fund Overview also contained in this agenda packet, the Vehicle Replacement Fund is expected to end Fiscal Year 2023-2024 with an available fund balance of $6,292,580. The amount reserved for the replacement of vehicles and equipment through the end of FY 2023-2024 is $4,897,058, and the contingency reserve is $100,000 leaving an excess balance of $1,295,522 in the fund

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
As Vehicle Maintenance provides for and maintains vehicles for nearly all City operations, the Vehicle Maintenance budget addresses all of the City’s priority goals.

ATTACHMENTS
Attachment 1 - Vehicles to be Replaced / Equipment to be Replaced Attachment 2 - Internal Service Fund Charges
Attachment 3 - Changes to Estimated Useful Lives
Attachment 4 - Vehicle Replacement Fund Budget Comparisons (501-0560) Attachment 5 - 501-Vehicle Replacement Fund Expenses
Attachment 6 - Changes to Replacement Values
Attachment 7 - Vehicles/Equipment Added or Deleted
Attachment 8 - Vehicle Replacement Fund Budget Narrative Attachment 9 – City Resolution 2023-121

4.11 4.11 Staff Report

251

Attachment 1
City of Foster City -- Vehicle Replacement Fund
Vehicles to be Replaced
For the Year Ended June 30, 2025
Dept / DivVehicle # Vehicle Make / Model Replacement Cost 05-10 80 10 FORD RNGR 40,000 05-20 42 09 FORD F250 45,000 05-20 45 10 FORD F250 45,000 05-20 48 11 FORD F250 85,000 05-20 55 10 FORD F250 85,000 05-20 58 14 FORD F-250 85,000 06-10 26-20 16 FORD TAURUS 40,000 06-20 26-05 20 POLICE INTERCEPTOR UTILITY 75,000 06-20 26-06 20 POLICE INTERCEPTOR UTILITY 75,000 06-20 26-10 20 POLICE INTERCEPTOR UTILITY 75,000 06-30 26-28 07 FORD E-250 VAN 60,000 08-30 45-95 10 TOYOTA PRIUS 35,000 745,000$
Dept / Div Equipment Description Replacement Cost
NONE
-$
TOTAL 745,000 $
Equipment to be Replaced
For the Year Ended June 30, 2025
City of Foster City -- Vehicle Replacement Fund

4.11 Attachment 1 - Vehicles to be Replaced-Equipment to be Replaced

252

Attachment 2

INTERNAL SERVICE FUND CHARGES
VEHICLE REPLACEMENT FUND 501
Approved
FY 2023-2024
Requested
FY 2024-2025 Variance Notes
0110 CMO Admin (0) 22,482$ -$ (22,482) 1 0510 Rec Admin (3) 97,036$ 80,259$ (16,777) 2 0520 Parks Maint (17) 564,501$ 479,394$ (85,107) 3 0610 PD Chief's Office (1) 25,096$ 25,422$ 326 4 0620 PD Field Ops (15) 456,932$ 446,305$ (10,627) 5 0630 PD Admin (5) 122,451$ 121,643$ (808) 6 0810 Planning Admin (2) 37,809$ 52,639$ 14,830 7 0820 Building (4) 70,937$ 95,232$ 24,295 8 0910 PW Admin & Engineering (4)53,179$ 100,001$ 46,822 9 0920 PW Lagoons & Levees (1) 39,234$ 45,146$ 5,912 10 0930 PW Streets (4) 115,930$ 121,528$ 5,598 11 401 Water Enterprise (7) 198,050$ 232,672$ 34,622 12 451 Wastewater Enterprise (11) 427,534$ 531,658$ 104,124 13 505 Building Maint (3) 103,394$ 72,901$ (30,493) 14 Total All Funds 2,334,565 2,404,800 70,235 *Vehicle Maintenance (2)
Detailed Analysis
General note: all chargebacks reflect the addition of a Fleet Supervisor position in FY 24-25 Note 1 City Manager's former assigned vehicle is currently managed by Public Works Note 2 Decrease due to completion of accounting for increased costs and restarting funding upon purchase (1) Note 3 Decrease due to completion of accounting for increased costs and restarting funding upon purchase (5) Note 4
Note 5 Decrease due to completion of accounting for increased costs and restarting funding upon purchase (4) Note 6 Decrease due due to completion of accounting for increased costs and restarting funding upon purchase (1) Note 7
Note 8 Increase in replacement cost of (1) vehicle and replacement of (1) fully funded vehicle Note 9 Addition of City Manager vehicle and increase in replacement cost of (2) vehicle Note 10Inflationary adjustment
Note 11Decrease in replacement cost offset by increase in vehicle maintenance division allocation Note 12
Note 13
Note 14Restart regular replacement charges following increase to replacement cost of (3) vehicles in the previous FY Increase in replacement cost of (1) vehicle
Department Charged
(Receiving Goods/Services)
Increase in replacement cost of vehicles (2)
No significant change
Increase in vehicle maintenance division allocation

4.11 Attachment 2 - Internal Service Fund Charges

253

Attachment 3
City of Foster City
Vehicle Replacement Fund
Changes to Estimated Useful Lives
For FY 2024-2025
Description Department
Purchased
Fiscal Year
Beginning
(xxxx)
Previous
Useful
Life
(Years)
Revised
Useful
Life
(Years)
Increase
(Decrease)
Vehicles
08 FORD RANGER XLT 05-20 2007 17 18 1 08 FORD 750 05-20 2007 17 18 1 09 FORD F550 05-20 2008 16 17 1 18 POLICE INTERCEPTOR UTILITY 06-20 2017 7 8 1 16 BMW 06-20 2016 8 9 1 15 BMW 06-20 2014 10 11 1 16 FORD F250 06-20 2015 9 10 1 11 FORD ESCAPE HYBRID 06-30 2010 14 15 1 17 FORD C-MAX 06-30 2016 8 9 1 13 FORD TAURUS 06-30 2015 9 10 1 15 FORD FOCUS 08-10 2014 10 11 1 09 FORD RNGR 08-30 2008 16 17 1 12 TOYOTA PRIUS 08-30 2012 12 13 1 09 FORD RNGR 08-30 2008 16 17 1 13 TOYOTA PRIUS 09-10 2013 11 12 1 09 TOYOTA PRIUS 09-10 2008 16 17 1 09 FORD RANGER 09-10 2008 16 17 1 08 FORD F450 09-30 2007 17 18 1 06 FORD F350 KUV Body 09-70 2005 19 20 1 16 FORD TRANSIT 05-50 2016 8 9 1 16 FORD TRANSIT 05-50 2016 8 9 1 Equipment
FORD SCAN / SCOPE 05-60 2012 12 13 1 VEHICLE LIFT - SIDE POST 05-60 2004 20 21 1

4.11 Attachment 3 - Changes to Estimated Useful Lives

254

Attachment 4
Vehicle Replacement Fund Budget Comparisons (501-0560)
Account Description
Approved
FY 2023-2024
Requested
FY 2024-2025
Increase
(Decrease) Notes
4110 Permanent Salaries 339,631 495,917 156,286 1 4112 Overtime 1,000 1,064 64 1 4121 PERS Retirement 36,359 52,608 16,249 1 4135 Flex Allowance 54,705 98,032 43,327 1 4136 Workers Compensation 28,116 28,213 97 1 4139 Other Fringe Benefits 13,850 23,202 9,352 1 4140 Compensated Absences 9,165 10,258 1,093 1 4141 GASB 68 Pension Exp 70,000 69,000 (1,000) 1 4142 GASB75 OPEB EXP-PEMHCA 4,000 5,000 1,000 1 4154 PEMHCA 2,234 2,352 118 1 4161 EMPLOYEE BENEFIT-PERS U 76,290 92,184 15,894 1 4243 General Office Supplies 1,200 1,700 500 2 4246 Maint-Facility&Equip 463,500 464,500 1,000 3 4247 Rents and Leases 800 800 - 4 4248 Utilities & Communication 4,000 4,000 - 4 4251 Contract, Prof, Spec Svcs 5,000 5,800 800 5 4253 Membership,Dues,Subscript 500 500 - 4 4254 Travel,Conference,Meeting 500 500 - 4 4255 Training 750 750 - 4 4256 Equip Maintenance Charges 30,771 20,834 (9,937) 6 4257 Comm & Info Services Charges 18,311 19,287 976 7 4262 Insurance & Other Costs 197,374 270,624 73,250 8 4384 Motor Vehicles 100,000 845,000 745,000 9 1,458,056 2,512,125 1,054,069
Detailed Analysis:

Foster City City CouncilMarch 25, 2024

Foster City City Council
March 25, 2024