CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF MARCH 25, 2024
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The duly called and noticed special meeting of the City Council of the City of Foster City (City), sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID) of March 25 , 2024, was called to order at 6:3 0 p.m. by Mayor/President Sullivan.
This meeting was held as a hybrid meeting.
ROLL CALL
The Communications Director/City Clerk/Recording Secretary called the roll:
PRESENT:
Councilmembers/ex officio Directors Jon Froomin, Sam Hindi, Stacy Jimenez, Art Kiesel, and Mayor/President Patrick Sullivan.
ABSENT: None.
STAFF PRESENT: Marlene Subhashini, Acting City/District Manager; Mary Wagner, Special Legal Counsel; Sofia Mangalam, Community Development Director; Diane Pitman, Administrative Services Director; Tracy Avelar, Police C hief; Derek Schweigart, Parks and Recreation Director; Andrew Brozyna, Public Works Director ; Waqas Hassan, Assistant Finance Director; Rob Lasky, IT Manager ; Laura Galli, Engineering Manager; Kurt Zander, Building Maintenance Manager; ‘Andra Lorenz, Senior Management Analyst; Yelena Cappello, Management Analyst; Katherine Mendoza, Deputy City Clerk ; Shuli Chen, Video Technician; and Priscilla Schaus, Communications Director/City Clerk.
PUBLIC
Evan Adams addressed the City Council via email regarding the lagoon plan.
STUDY SESSION
Mayor/President Sullivan recessed the meeting into Study Session for the following:
1. Five Year Capital Improvement Program – FY 20242025 to FY 20282029
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
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. Review of Projected Water Rates for FY 20242025 and Policy Direction for Rate Notification Under Proposition 218
5. Review of Projected Wastewater Rates for FY 20242025
6. Updates to Master Fees and Service Charges Schedule for FY 20242025
7. Internal Service Funds Summary
8. Compensated Absences Internal Service Fund
9. Longevity Recognition Benefits Plan and Public Employees' Medical and Hospital Care Act (PEMHCA) Benefits Plan Internal Service Funds
10. Equipment Replacement Fund Budget and Internal Service Charges for FY 20242025
11. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 20242025
12. Building Maintenance Fund Budget and Internal Service Charges for FY 20242025
13. SelfInsurance Fund Budget for FY 20242025
14. Information Technology Internal Service Fund Budget for FY 20242025
Motion by Councilmember/Director Froomin, seconded by Vice Mayor/Vice President Jimenez, and carried unanimously by roll call vote, 5 00, Minute Order No. 1969 was adopted as follows:
1. Proceed with the proposed FiveYear Capital Improvement Program – FY 2024 2025 to FY 20282029 and authorize staff to include the program in the FY 2024 2025 budget with an amendment to amortize the appropriation of funding for the Sea Cloud Maintenance Shed Project (CIP 310714) from the City CIP Fund 301 over the fiscal years in which the work of the project will take place;
2. Proceed with the proposed Fifteen Year General Fund CIP and Funding Plan that includes $5.75 million of annual transfers from the General Fund to the City Capital Fund for FY 20242025 through FY 20302031 followed by $3.5 million of annual transfers for the remaining eight fiscal years for the preparation of the City’s Fiscal Year 20242025 budget and FiveYear Financial Plan as presented;
3. Proceed with the FifteenYear Water and Wastewater Funds CIP and Funding Plan that includes $1.0 million of annual transfers from the Water Operating Fund to the Water CIP Fund and $7.60 million of annual transfers from the Wastewater CIP Fund for FY 20242025 and FY 20252026 followed by $3.1 million of annual transfers for the next thirteen fiscal years for the preparation of the Enterprise Funds’ Fiscal Year 20242025 budget and FiveYear Financial Plan as presented;
4. Proceed with the water rate adoption based on the Draft Water Rate Study Update Results Memo dated March 15, 2024 prepared by Bartle Wells Associates. Proceed with the distribution of public noticing to all ratepayers as required by Proposition 218 for a Public Hearing to be held on June 3, 2024, noticing a rate based on the Board of Directors’ direction. Include additional information in the Proposition 218 notice showing a comparison of the District’s water rates to the rates of neighboring communities;
5. Proceed to implement the previously adopted 2% annual wastewater rate increase for FY 20242025 based upon the Draft Wastewater Rate Study Update Results Memo dated March 15, 2024, prepared by Bartle Wells Associates.
Proceed with including information about the new Wastewater Rates in the Proposition 218 notice that will be mailed for the Water Rate public hearing;
6. Proceed with adopting the recommended changes and updates to the Master Fees and Service Charges Schedule for FY 20242025 with amendments to the Parks and Recreation Fee Schedule to include a line item for the patio area as an available reservation option in the proposed Vibe Rental Structure and delay review of the proposed Community Garden Fees until staff presents the Community Garden Pilot Program at a future Council meeting;
7. Proceed with the reserve levels policy and funding methodologies for all Internal Services Funds;
8. Proceed with decreasing the current rate of 2.74% to 2.11% in FY 20242025 for the Compensated Absence Internal Service Fund (CA ISF) to maintain a full reserve balance through FY 202425. Proceed with providing an assessment holiday in FY 202425;
9. Proceed with preparing the Longevity Recognition Benefits Plan and Public Employees’ Medical and Hospital Care Act (PEMHCA) Benefits Plan based on the recommendations and allocations contained in the staff report and proceed with establishing and funding IRC Section 115 irrevocable trust options;
10. Proceed with preparing the Equipment Replacement Fund budget based on the recommendations and allocations contained in the staff report with an amendment to defer the scheduled replacement of playground equipment for Shad Park and Sunfish Park until the Parks Master Plan is complete;
11. Proceed with preparing the Vehicle Replacement Fund budget based on the recommendations and allocations contained in the staff report with an amendment to maintain General Fund transfers at the FY 20232024 level;
12. Proceed with preparing the Building Maintenance Fund budget based on the recommendations and allocations contained in the staff report;
13. Proceed with preparing the Self Insurance Fund budget based on the recommendations and allocations contained in the staff report; and
14. Proceed with preparing the Information Technology Fund budget based on the recommendations and allocations contained in the staff report.
Meeting recessed into study session at 6:32 p.m. and reconvened at 8:54 p.m.
ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Sullivan adjourned the meeting. Meeting adjourned at 8:54 p.m.