Agenda packet — Foster City City Council, June 3, 2024 (part 2 of 3)

6.7 Attachment 9 - Page 9 of FY 24 Master Fees and Service Charges Schedule (ref. PW- 11)

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3 DATE: June 3, 2024

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

FROM: Waqas Hassan, Assistant Finance Director
DEPARTMENT: Finance
SUBJECT: ESTABLISHING THE PROPERTY TAX RATE FOR GENERAL OBLIGATION BONDS FOR FISCAL YEAR 2024-2025

RECOMMENDATION
It is recommended that the City Council approve the attached resolution establishing the property tax rate for General Obligation bonds for Fiscal Year 2024-2025.

EXECUTIVE SUMMARY
In August 2020, the City issued General Obligation Bonds, Series 2020 (Levee Protection Planning and Improvements Project) "Bonds" in the aggregate principal amount of $85 million. In July 2023, due to the subsequent increase in the total cost of the Project, the City issued a second tranche for $5 million Bonds of the total approved amount of $90 million.

The City Council is required annually to levy a property tax sufficient to pay the principal and interest on the Bonds. City staff has determined that a combined tax rate of $0.0288 per $100 on assessed value (equates to $28.8 per $100,000 assessed value) upon taxable properties in the City is necessary to pay for the Bond debt service (principal and interest) of $4,148,812 that is due and payable on February 1, 2025 and August 1, 2025.

BACKGROUND/ANALYSIS
In June 2018, Foster City voters approved a ballot measure authorizing the issuance of

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3 General Obligation bonds for the Levee Protection Planning and Improvements Project for up to $90 million. In August 2020, the City Council authorized the issuance of the first tranche of the General Obligation bonds in the aggregate principal amount of $85 million. In July 2023, due to the subsequent increase in the total cost of the Project, the City issued a second tranche for $5 million Bonds of the total approved amount of $90 million. Given that there is a combined Bond debt service (principal and interest) of $4,148,812 that is due and payable on February 1, 2025 and August 1, 2025, City staff has determined that a combined property tax rate of $0.0288 per $100 on assessed value (equates to $28.8 per $100,000 assessed value) is appropriate in Fiscal Year 2024-2025. This combined rate corresponds to separate tax rate of $0.0273 per $100 on assessed value (equates to $27.3 per $100,000 assessed value) for 2020 General Obligation Bonds and $0.0015 per $100 on assessed value (equates to $1.5 per $100,000 assessed value) for 2023 General Obligation Bonds. The County requires a City Council resolution providing the County with the authority to add this levy to their tax roll.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
The recommended General Obligation Bonds tax levy provides funds needed in the City's Debt Service Fund for principal and interest payments for the bond year ending August 1, 2025. There is no impact to the General Fund.

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

Attachment 1 - Resolution

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RESOLUTION NO. _____________

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

CALIFORNIA, ESTABLISHING THE PROPERTY TAX RATE FOR GENERAL OBLIGATION BONDS FOR FISCAL YEAR 2024-25

CITY OF FOSTER CITY
WHEREAS, this City Council (the “City Council”) of the City of Foster City (the “City”), located in San Mateo County (the “County”), California authorized the issuance of General Obligation Bonds, Series 2020 (Levee Protection Planning and Improvements Project), the “Bonds”, in the aggregate principal amount of $85 million for purposes authorized by the voters of the City on June 5, 2018 (the “Bond Measure”); and WHEREAS, the City Council authorized the issuance of the second tranche of General Obligation Bonds, Series 2023, in the aggregate principal amount of $5 million of the total approved amount of $90 million for purposes authorized by the Bond Measure; and
WHEREAS, pursuant to Section 5403 of the Government Code, the City may levy a tax or assessment, as the case may be, in an amount clearly sufficient to pay that portion of the principal of and interest on said Bonds which is expected to become due and payable before the proceeds of the next succeeding tax or assessment levy will be available; and
WHEREAS, the City Council desires to establish the rate of property tax required to generate an amount of revenue from the tax base to provide sufficient monies to pay debt service on the Bonds; and
WHEREAS, the combined debt service on the Bonds for the bond year ending August 1, 2025 is $4,148,812.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that:
•The property tax rate within the City for General Obligation Bonds, Series 2020 for the fiscal year ending June 30, 2025 is established at $0.0273 per $100 assessed value, pursuant to Section 5403 of the Government Code. •The property tax rate within the City for General Obligation Bonds, Series 2023 for the fiscal year ending June 30, 2025 is established at $0.0015 per $100 assessed value, pursuant to Section 5403 of the Government Code. •The combined property tax rate within the City for the Bonds (including Series 2020 and Series 2023) for the fiscal year ending June 30, 2025 be and hereby is established at $0.0288 per $100 assessed value, pursuant to Section 5403 of the Government Code; and

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BE IT FURTHER RESOLVED that the City Manager, Finance Director and the Assistant Finance Director are each hereby directed and authorized to take any and all actions necessary to ensure that such property tax rate is enrolled with the San Mateo Auditor-Controller.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 3rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
___________________________________

PRISCILLA SCHAUS, CITY CLERK

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9 DATE: June 3, 2024

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

FROM: Priscilla Schaus, Communications Director/City Clerk DEPARTMENT: Communications/City Clerk
SUBJECT: CALLING AND GIVING NOTICE OF THE NOVEMBER 5, 2024

GENERAL MUNICIPAL ELECTION, REQUESTING

CONSOLIDATION OF THE ELECTION AND AUTHORIZING THE

CITY CLERK TO EXECUTE A SERVICE AGREEMENT WITH THE

COUNTY OF SAN MATEO FOR ELECTION SERVICES

RECOMMENDATION
It is recommended that the City Council adopt a resolution: (1) calling and giving notice of holding the General Municipal Election to be held on November 5, 2024 for the election of three (3) Members of the City Council; (2) requesting that the Board of Supervisors of the County of San Mateo consolidate the General Municipal Election to be held on November 5, 2024 with the Statewide General Election pursuant to Section 10403 of the Elections Code and to permit the San Mateo County Department of Elections to conduct said election; and (3) authorizing the City Clerk to execute a service agreement with the County of San Mateo for election services.

BACKGROUND/ANALYSIS
The General Municipal Election to elect Members of the City Council for Foster City is held in November of even-numbered years. By law, a resolution must be adopted calling the General Municipal Election. The election process to fill the three (3) Councilmember seats begins by calling the election. Foster City’s General Municipal Election is consolidated with other Consolidated Elections in San Mateo County, and this consolidation is approved by the San Mateo County Board of Supervisors. A service agreement is executed between the City of Foster City and the County of San Mateo for election services. The service agreement puts forth the duties that the City Clerk and County Assessor, Clerk-Recorder and Elections office will perform. The

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9 resolution calling the election authorizes the City Clerk to enter into the service agreement.

Candidates who qualify for nomination in the General Municipal Election and submit a Candidate Statement of Qualifications to be published and distributed in the sample ballot will be governed by City Resolution No. 2023-102, which indicates that the word count of the statement cannot exceed 200 words, and that the candidate will cover the cost of publication, translation, and related services.

As noted in Attachment 2, the reorganization meeting for the November 5, 2024 General Municipal Election will take place at a special meeting on December 9, 2024.

The special meeting is necessary because the deadline for the County to certify the election results is December 5, 2024, which is after the regularly scheduled City Council meeting of December 2, 2024. On December 9, 2024, the City Council would consider adopting a resolution certifying the November 5, 2024 General Municipal Election results and hold the reorganization installing newly elected Councilmembers and selecting the new Mayor and Vice Mayor. Per Elections Code 10263, for a consolidated election, the governing body shall meet at its usual place of meeting no later than the next regularly scheduled City Council meeting following presentation of the 28-day canvass of the returns, or at a special meeting called for this purpose, to declare the results and to install the newly elected officers.

The City Council will be considering placing a measure on the ballot related to the Business License Tax for the November 5, 2024 General Municipal Election.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
Funding in the amount of $113,800, which includes costs associated with three City Council vacancies and one potential ballot measure, has been added to the Preliminary Budget for Fiscal Year 2024-2025 in the Municipal Elections account and is pending City Council approval, per adoption of the Fiscal Year 2024-2025 Budget at the June 17, 2024 City Council meeting.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
City Council Operations and Improved Community Engagement ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Important Dates

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RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY (1) CALLING

AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 FOR THE ELECTION OF CERTAIN

OFFICERS (THREE MEMBERS OF THE CITY COUNCIL) AS REQUIRED BY THE

PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES, (2) REQUESTING THAT THE BOARD OF SUPERVISORS OF

THE COUNTY OF SAN MATEO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024 WITH THE STATEWIDE GENERAL ELECTION PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE AND TO

PERMIT THE SAN MATEO COUNTY REGISTRATION AND ELECTIONS DIVISION TO CONDUCT SAID ELECTION, AND (3) AUTHORIZING THE CITY CLERK TO EXECUTE

A SERVICE AGREEMENT WITH THE COUNTY OF SAN MATEO FOR ELECTION

SERVICES

CITY OF FOSTER CITY
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 5, 2024 for the election of three (3) City Councilmembers each for a term of four (4) years; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date pursuant to Elections Code Section 10002 and within the City the precincts, polling places, and election officers for the elections be the same, and that the Registration and Elections Division of the County of San Mateo canvass the returns of the General Municipal Election and the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City, California that:

1. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of Foster City on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing the following:
a. One Councilmember for a term of four years, to expire in 2028; b. One Councilmember for a term of four years, to expire in 2028; c. One Councilmember for a term of four years, to expire in 2028.

2. That the San Mateo County Registration and Elections Division is hereby authorized to canvass the returns of the City General Municipal Election, and that the General Municipal Election and the other elections shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the Statewide election.

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3. That pursuant to the requirements of Section 10403 of the Elections Code, the San Mateo County Board of Supervisors is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election.

4. That the ballots to be used at the election shall be in the form and content as required by law.

5. That the Board of Supervisors is hereby requested to issue to all officers of the County of San Mateo (the “County”) charged with duties pertaining to the other election instructions to take any and all steps necessary for the holding of the consolidated elections. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors of the County is requested to permit the Registrar of Voters and County Clerk as County Elections Official to render all services specified by Section 10400 et seq. of the Elections Code relating to the election, for which services the City agrees to reimburse the County.

6. That the consolidated election shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened at 7:00 a.m. and closed at 8:00 p.m. on election day, ballots counted and returned, returns canvassed, and all other proceeding in connection with the election shall be regulated and done by the County Clerk of the County in accordance with the provisions of law regulating the elections so consolidated.

7. Candidates who qualify for nomination in the General Municipal Election and submit a Candidate Statement of Qualifications to be published and distributed in the sample ballot will be governed by City Resolution No. 2023-102, which indicates that the word count of the statement cannot exceed 200 words, and that the candidate will cover the cost of publication and related services.

8. That the City Clerk is hereby authorized to execute a service agreement with the County to render specified services to the City relating to the November 5, 2024 Election.

9. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further additional notice of election, in time, form and manner as required by law.

10.That the City Clerk of the City is hereby directed to file a certified copy of this resolution with the Board of Supervisors at the Registrar of Voters of the County as soon as possible and in no event later than 88 days prior to the date set for the elections.

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PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 3rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
________________________________

PRISCILLA SCHAUS, CITY CLERK

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Important Dates for the November 5, 2024 General Election Note: these dates are provided for informational purposes only and are not legal advice nor intended to be a substitute for the actual regulation, statute or law cited. The complete calendar can be found here:
https://smcacre.gov/elections/november-5-2024-election-calendar Date Description Code Reference
July 1 – July 15 City Notice of Election
Between these dates, a city shall publish its Notice of Election, stating the offices to be filled and time of
election. The City Elections Official shall consolidate the Notice of Election and the Notice of Measure into
one notice if any city measure was placed on the
ballot prior to the Notice of Election’s publication.

EC §§12101, 12111
July 15 – August 9
(5:00 p.m.)
Candidate Filing Period
Between these dates is the Candidate Filing Period.

Nomination Documents (Declaration of Candidacy
and Nomination Papers) are available during this
time. Paperwork must be filed by the close of
business on August 9, 2024. City candidates shall
file paperwork with their City Clerk’s office and should check the business hours of their City Clerk’s office.

No candidate who has filed a Declaration of
Candidacy may withdraw as a candidate, except
city, school and special district candidates are
permitted to withdraw candidacy no later than
August 9, 2024.

EC §§8020, 8061, 8105,
8800, 10220, 10224,
10407(a), 10510, 10603,
13107
August 9 Election Consolidation Deadline
Last day for a local entity to deliver a resolution
requesting election services and consolidation from
the County Board of Supervisors for the November 5,
2024 Election. A copy of the resolution of the
governing board requesting the consolidation shall be
submitted to the County Elections Official. A copy of
the exact form of the question, proposition, or office
to appear on the ballot must also be submitted.

EC §§1405, 10002, 10403(a)-
(b)
August 10 – August 14
(5:00 p.m.)
Extended Candidate Filing Period
Between these dates is the Extended Candidate
Filing Period. If an eligible incumbent does not file
Nomination Documents (Declaration of Candidacy
and Nomination Papers) by August 9, 2024 at 5 p.m.,
the filing period is extended for that office for five
calendar days until August 14, 2024 at 5 p.m., for any
person other than the incumbent. City candidates
shall file paperwork with their City Clerk’s office and should check the business hours of their City Clerk’s
EC §§10225, 10407(b),
10516, 10604

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187

office. This section is not applicable where there is
no incumbent eligible to be elected.

August 15, 11:00 a.m. Randomized Alphabet Drawings
Randomized Alphabet Drawings are conducted by
both the Secretary of State and County Elections
Official on this date at 11 a.m. to determine the order in which candidate names will appear on the ballot
and the letters that will be assigned to each ballot
measure.

EC §§13111-13, 13116
On or before
October 29
City Clerk publishes/posts list of “Nominees for Public Office” in the order that candidates will appear on the ballot, and a notice of “Measure to be Voted On”, if
applicable.
§12110, §12111
September 9 –
October 22
Write-in Candidate Filing Period
Between these dates is the Candidate Filing Period
for write-in candidates. Write-in candidates must file
a statement of write-in candidacy and other required
documentation with the County Elections Official. City
candidates must file their paperwork with their City
Clerk's office and should check the business hours of
their City Clerk's office.

EC §§8600-06
September 26 First Pre-Election Statement Due
First pre-election campaign committee statement for
candidates and committees is due for the period
ending September 21, 2024 (which is 45 days before
the election).

GC §§84200.5, 84200.8(a)
Fair Political Practices
Commission (FPPC)
Form 460 or 470
October 7 – October
29 Mailing of Vote by Mail Ballots
No later than this date, the County Elections Official
shall begin mailing Vote by Mail ballots to all
registered voters in the county.

EC §4005(a)(8)(A)
October 21 Voter Registration Deadline
Voter registration closes on this date for the
November 5, 2024 Presidential General Election.

Voters must register by this date to be eligible to vote non-provisionally in this election. Voter registration forms postmarked prior to or on this date are
accepted.

EC §2102
October 24 Second Pre-Election Statement Due
Second pre-election campaign committee statement
for candidates and committees is due for the period
GC §§84200.5, 84200.8(b)
FPPC Form 460

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188

ending October 19, 2024 (which is 17 days before
the election).

November 5 Election Day
All Vote Centers open from 7 a.m. to 8 p.m.

Semifinal official canvass commences upon the
closing of all polls at 8 p.m.

EC §§1000, 4005, 14212,
15150-51
December 5 County Election Certification
Last day for County Elections Official to certify
election results to the jurisdictions participating in the election.
§15372
At the December 9,
2024 Special City
Council meeting
Adopt resolution certifying election results; Install
newly elected Councilmembers; and elect new Mayor
and Vice Mayor.
§10263

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189

DATE: June 3, 2024

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

FROM: Diane Pitman, Administrative Services Director
Rob Lasky, IT Manager
DEPARTMENT: Administrative Services
SUBJECT: AGREEMENT FOR FOSTER CITY IT DIVISION TO PROVIDE IT

SERVICES TO SAN MATEO CONSOLIDATED (SMC) FIRE

RECOMMENDATION
It is recommended that the City Council approve the attached resolution authorizing the City Manager to sign an agreement which contracts the City of Foster City (hereinafter referred to as "Foster City") Information Technology (IT) Division to provide IT Services to the San Mateo Consolidated Fire Department (hereinafter referred to as "SMC Fire") in FY 2024-2025. This agreement will result in revenues of $35,101 to the IT Internal Services Fund (ISF) that will help lower the reallocation chargebacks that the IT Division applies to the other City departments, so there is an indirect benefit to the General Fund.

EXECUTIVE SUMMARY
SMC Fire has the need of various IT services including support of their IT systems (desktops, laptops, tablets, servers, network switches, internet circuits, SD-WAN equipment, telephones, printers, copiers, and software). Assistance is also needed with IT Management functions (IT policies, IT budgeting, IT strategic planning, and IT procurement). The Foster City IT Division has the bandwidth to support SMC Fire for these functions, and the offset provided by the revenue helps to keep costs manageable for the other City departments.

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BACKGROUND/ANALYSIS
Prior to SMC Fire officially becoming their own entity in 2019, each of the joining Fire Departments were tied into their parent city’s IT infrastructure. SMC Fire knew they would have to find a way to remove those ties to their parent cities and run a separate network of their own. In early 2019, SMC Fire reached out to the Foster City IT Division to ask for advice. The Foster City IT Manager offered to help, with approval from the City Manager. The Foster City IT Division also offered to migrate some of SMC Fire’s virtual servers from San Mateo and Belmont to Foster City’s server infrastructure. The Foster City IT Manager assisted an SMC Fire contracted Project Manager throughout the network migration during 2019, helping to choose the vendor for their managed WAN and phone system, as well as a vendor to help refresh the PCs that were transferred from San Mateo, Belmont, and Foster City’s inventories.

In 2023, SMC Fire hired a full-time Systems Analyst of their own. This has reduced the overall impact on Foster City IT, however, there are some areas that Foster City IT has still been helping with. One area is GIS development, as this is a somewhat specialized skillset. Another area is network support. For example, this year’s agreement includes allowing SMC Fire to use a percentage of bandwidth on the Foster City data circuit that connects the Corporation Yard with City Hall. This will allow SMC Fire to connect their Training Trailer to their Admin Offices, which will eliminate their need for a cellular data connection at the Training Trailer.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
The proposed charge to SMC Fire for Fiscal Year 2024-2025 is based on these line items:

Proposed Charges to SMC Fire in Fiscal Year 2024-2025 Cost 10% of Sr System Analyst
(overhead included)
$ 20,250
6 virtual servers
@ $600/year/server
$ 3,600
Ninja RMM licensing
Paid by Foster City for both orgs for ease of administration, then billed back to SMC Fire for their portion
$ 5,250
Data Circuit Usage
Fractional usage of the data circuit between City Hall and the Corporation Yard to connect SMC Fire’s Training Trailer to their Admin offices $ 6,000
TOTAL $ 35,100

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By offering these services to SMC Fire, the Foster City IT Division has been able to lessen the impact to Foster City’s General Fund by offsetting IT ISF charges to the City’s other departments. The Foster City IT Division's project list has not been impacted by supporting SMC Fire, in part because staff had already been supporting the Foster City Fire Department prior to the formation of SMC Fire. If the City Council chooses not to approve these resolutions, IT ISF charges to Foster City’s other departments for Fiscal Year 2024-2025 would need to be increased to cover the loss of the fees that would have been charged to SMC Fire. Additionally, SMC Fire would need to find alternative IT Support Services, potentially at higher costs. Those costs would likely need to be recouped through SMC Fire’s charges to member agencies, which would impact Foster City’s General Fund as well.

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

Attachment 1 – Resolution
Attachment 2 – Agreement

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RESOLUTION NO.____________

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

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE SAN MATEO CONSOLIDATED FIRE DEPARTMENT IN THE AMOUNT OF $ 35,101 FOR

THE CITY OF FOSTER CITY IT DIVISION TO PROVIDE INFORMATION TECHNOLOGY SERVICES FOR FY 2024-2025

CITY OF FOSTER CITY
WHEREAS, San Mateo Consolidated Fire (SMC Fire) has the need of various IT services including support of their IT systems and IT Management functions; and WHEREAS, Foster City IT Division has the bandwidth to support SMC Fire for these functions; and
WHEREAS, this agreement will result in revenues of $35,101 to the IT Internal Services Fund that will help lower the reallocation chargebacks that the IT Division applies to the other City departments.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize the City Manager to execute an agreement with the San Mateo Consolidated Fire Department in the amount of $35,101 for the City of Foster City IT Division to provide Information Technology services for FY 2024-2025.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the special meeting held on the 3rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

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6 AGREEMENT TO PROVIDE

INFORMATION TECHNOLOGY SERVICES
This Agreement is made and entered into as of the 3 rd day of June, 2024 by and between the San Mateo Consolidated Fire Department, hereinafter referred to as "CLIENT", and the City of Foster City, a Municipal Corporation, hereinafter referred to as "CITY ". CLIENT and CITY shall be referred to hereinafter as the “PARTIES.”

RECITALS
This Agreement is entered into with reference to the following facts and circumstances:

A. That CLIENT has the need to secure information technology services; and B. That CITY is experienced and qualified to perform the consulting services desired by the CLIENT and is willing to perform such services; and C. That CLIENT has elected to engage the services of CITY upon the terms and conditions as hereinafter set forth; and
D. On June 20, 2023, CLIENT and CITY entered into an agreement for which CITY provided information technology services to CLIENT. The PARTIES intend to supersede and replace the June 20, 2023 service agreement with the terms set forth herein.

AGREEMENT

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

Performance of the work specified in said Appendix A is hereby made an obligation of CITY under this Agreement, subject to CLIENT’s obligations set forth in Appendix A. Any changes to the Agreement shall be made only upon the mutual written agreement of the Parties.

2. Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and continue for a period of twelve (12) months. At the end of each twelve (12) month period, the Agreement shall automatically renew for an additional twelve (12) month period, provided neither party terminates the Agreement as specified herein.
(b) Neither Party shall be authorized to terminate this Agreement within the first six (6) months after execution. Thereafter, either Party may terminate this Agreement without cause by giving written notice not less than thirty (30) days prior to the effective date of termination, which date shall be included in said notice.

In the event of such termination, CLIENT shall compensate CITY for out-of-scope services, as defined in Appendix A, rendered to the date of termination. If CLIENT

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6 terminates the Agreement, there shall be no refund of the yearly fees. Nothing herein contained shall be deemed a limitation upon the right of either party to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue hereunder.

3. Compensation; Expenses; Payment. CITY shall provide information technology services to CLIENT pursuant to the following fee:

A. Annual Fee

1. Thirty Five Thousand One Hundred and One Dollars ($35,101) for System Administration, Maintenance and Support, as defined in Appendix A, for each subsequent year of contract renewal. The System Administration, Maintenance and Support Fee shall be due on July 1 of each year.

2. In all subsequent years, provided CLIENT does not terminate the Agreement, the yearly System Administration, Maintenance and Support Fee may be adjusted by the CITY. Any adjustment to the System Administration, Maintenance and Support Fee will take effect on July 1, and requires notice to CLIENT on or before June 1 of the year in which the adjustment will take effect.

B. CLIENT shall promptly review invoicing and notify CITY of any objection thereto in writing within ten (10) business days of receipt of the invoice, and absent such objection, the invoice shall be deemed proper and acceptable, and shall be due thirty (30) days after billing. Absent such objection, unpaid fees shall bear interest from the date due at the maximum rate then allowable by law.

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

5. Authorization. This Agreement becomes effective when endorsed by both Parties in the space provided below.

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

7. Relationship of Parties. It is understood that the relationship of CITY to the CLIENT is that of an independent contractor and all persons working for or under the direction of CITY are its agents or employees and not agents or employees of the CLIENT.

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6 8. Defaults/Remedies. The occurrence of any one or more of the following events shall constitute a material default or breach of this Agreement by CLIENT:

A. Failure by the CLIENT to make any payment of fees required under this Agreement where such failure shall continue for a period of fifteen (15) business days after written notice by CITY.

B. Violation of any of the terms of Content Agreements as listed in Appendix A to this Agreement.

In the event of a material default or breach by CLIENT, the CITY may, without limiting the CITY’s rights or remedies, terminate information technology services to CLIENT and all other services provided herein.

9. Indemnity. CLIENT hereby agrees to defend, indemnify, and save harmless CITY, its Council, boards, commissions, officers, employees and agents, from and against any and all claims, suits, actions, liability, loss, damage, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, which may be brought against, or suffered or sustained by, CITY, its Council, boards, commissions, officers, employees or agents caused by, or alleged to have been caused by, negligence, intentional tortious act or omission, or willful misconduct of CLIENT, its officers, employees or agents in the performance of any services or work pursuant to this Agreement.

CITY hereby agrees to defend, indemnify, and save harmless CLIENT, its Council, boards, commissions, officers, employees and agents, from and against any and all claims, suits, actions, liability, loss, damage, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, which may be brought against, or suffered or sustained by, CLIENT, its Council, boards, commissions, officers, employees or agents caused by, or alleged to have been caused by, negligence, intentional tortious act or omission, or willful misconduct of CITY, its officers, employees or agents in the performance of any services or work pursuant to this Agreement.

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

CITY: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: IT Manager
CLIENT: San Mateo Consolidated Fire Department
1040 East Hillsdale Blvd
Foster City CA 94404

11. Non-Assignment. This Agreement is not assignable either in whole or in part.

6.10 Attachment 2 - Agreement

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8 9
6 12. Amendments. This Agreement may be amended or modified only by written agreement signed by both Parties.

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

14. Governing Law. This Agreement shall be governed by the laws of the State of California and any suit or action initiated by either party shall be brought in the County of San Mateo, California. In the event of litigation between the Parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

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

16. Entire Agreement. This Agreement, including its Appendix A and Appendix B, comprises the entire Agreement between the PARTIES.

6.10 Attachment 2 - Agreement

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8 9
6 IN WITNESS WHEREOF, the PARTIES hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY
A Municipal Corporation
Dated: _______________ __________________________________________ Stefan Chatwin, City Manager
ATTEST:

Dated: _______________ __________________________________________ Priscilla Schaus, City Clerk
Approved as to Form:

Dated: _______________ __________________________________________ Benjamin Stock, City Attorney
CLIENT: San Mateo Consolidated Fire Department
Dated: __________________________________________________________ Kent Thrasher, Fire Chief

6.10 Attachment 2 - Agreement

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8 9
6 Appendix A

SUPPORT
CITY shall support CLIENT desktops, laptops, tablets, servers, network switches, internet circuits, SD-WAN equipment, telephones, printers, copiers, Office 365, Eden, and other business-related software.

SERVICES
CITY shall assist CLIENT in creation and/or maintenance of IT policies, IT budgeting, IT strategic planning, and IT procurement.

HOURS
CITY staff are available 8-5 Business Days, observing CITY holidays. For off hours work, CITY shall make best efforts to provide services.

SLA
For emergencies, CITY staff will call back and/or reply via email within 30 minutes. For non- emergencies, CITY staff will do its best to reply within 1 business day.

SERVER HOSTING
CITY shall provide hosting for 6 virtual servers (AlwaysOnScene and Telestaff) as well as rack space and power for CLIENT’s single hardware server.

NINJAONE RMM SOFTWARE
NinjaOne RMM Software is purchased by CITY for both CITY and CLIENT in order for administrators to use a single login to support both organizations. CLIENT reimburses CITY for their portion of the invoice.

DATA CIRCUIT USAGE
CLIENT will be provided access to a portion of the CITY’s data circuit that connects City Hall to the Corporation Yard in order to connect CLIENT’s Training classroom to their Administrative offices. Traffic shaping will cap usage at 50Mbps.

OUT OF SCOPE SERVICES
Any other services (such as larger projects, etc.) are out of the scope of this agreement and would need to be negotiated on a time and materials basis.

6.10 Attachment 2 - Agreement

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8 9
6 Appendix B

PAYMENT SCHEDULES
In consideration for the full performance of the services set forth in Exhibit A, CLIENT agrees to pay CITY a fee in an amount of $ 35,101 annually. CITY will invoice CLIENT the annual fee amount on or about July 1. Payment will be due within 30 days of the invoice date.

6.10 Attachment 2 - Agreement

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6 6
0 DATE: June 3, 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: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: UPDATED CITY/DISTRICT PAY PLAN FOR FISCAL YEAR 2024- 2025

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (City Council) adopt resolutions approving the updated Pay Plan for Fiscal Year 2024-2025, effective July 1, 2024.

BACKGROUND/ANALYSIS
The City Council approves a Pay Plan at a regularly scheduled meeting as part of the budget adoption process or amends the Pay Plan if there are changes during the fiscal year. On June 5, 2023, the City Council approved the Foster City Police Officers Association (FCPOA) Memorandum of Understanding (MOU) effective July 1, 2023, through June 30, 2026. On June 20, 2023, the City Council approved the Compensation and Benefit Plan for the unrepresented Management Employees effective July 1, 2023. Both of these documents outlined a wage increase effective July 1, 2024, equal to the percentage movement of the San Francisco-Hayward-Oakland CPI-U April 2023 to April 2024, with a minimum of 3% and a maximum of 5%. The CPI- U percentage for April 2023 to April 2024 is 3.8%. The salary steps of the attached Pay Plan have updated salaries, increased by 3.8%, for all FCPOA and unrepresented Management Employee classifications. No other changes have been made to the Pay Plan.

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0 To meet CalPERS requirements under Government Code 20636 and CCR section 570.5, which requires public agencies to provide a publicly available pay schedule, staff is bringing this forward to ensure the City's pay schedule is updated with the new pay rates based on the approved FCPOA MOU and unrepresented Compensation and Benefits Plan.

Staff requests approval of the resolutions to approve the amended Pay Plan for Fiscal Year 2024-2025 which will be effective July 1, 2024. Upon approval, staff will publish the updated pay plan on the City's website for public access.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
CEQA General Rule Exemption

FISCAL IMPACT
The updated FY 2024-2025 Pay Plan reflects the approved salary ranges provided in the FCPOA MOU and unrepresented Compensation and Benefits Plan. The initial FY 2024-2025 budget used a 3% estimate for the anticipated wage increase and will be revised to reflect the 3.8% actual increase and included in the FY 2024-2025 budget to be considered for adoption by the City Council at the June 17, 2024, Council Meeting.

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

Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Attachment 3 - City/District Pay Plan for FY 2024-2025

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8 9
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY APPROVING AND ADOPTING THE AMENDED PAY PLAN FOR FISCAL YEAR 2024- 2025, EFFECTIVE JULY 1, 2024

CITY OF FOSTER CITY
WHEREAS, the City Manager has prepared and submitted to the City Council a schedule of pay ranges for job classifications for Fiscal Year 2024-2025; and WHEREAS, the schedule of pay ranges is referred to as the Pay Plan; and WHEREAS, the Pay Plan incorporates the negotiated salary increase for the Foster City Police Officer Association (FCPOA) labor unit and unrepresented Management Employees; and
WHEREAS, the City Council of the City of Foster City must approve the Pay Plan in order for the pay ranges to become effective.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City does hereby approve and adopt the amended Pay Plan for Fiscal Year 2024-2025, effective July 1, 2024.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 3rd day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.11 Attachment 1 - City Resolution

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2 1
9 0
RESOLUTION NO. _____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT APPROVING AND ADOPTING THE PAY PLAN FOR FISCAL YEAR 2024-2025, EFFECTIVE JULY 1, 2024

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the City Manager has prepared and submitted to the Board of Directors a schedule of pay ranges for job classifications for Fiscal Year 2024-2025; and WHEREAS, the schedule of pay ranges is referred to as the Pay Plan; and WHEREAS, the Pay Plan incorporates the negotiated salary increases for the Foster City Police Officers Association (FCPOA) labor unit and unrepresented Management Employees; and
WHEREAS, the Board of Directors of the Estero Municipal Improvement District must approve the Pay Plan in order for the pay ranges to become effective.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Estero Municipal Improvement District does hereby approve and adopt the amended Pay Plan for Fiscal Year 2024-2025, effective July 1, 2024.

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the Regular Meeting held on the 3rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, PRESIDENT
ATTEST:
_______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.11 Attachment 2 - EMID Resolution

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Exhibit ACity of Foster City / Estero Municipal Improvement District FY 2024-2025 Pay Plan
Effective July 1, 2024
Hourly
Position Step 1 Step 2 Step 3 Step 4 Step 5
Monthly
Executive Management
City Manager 26,338.10$
Chief of Police 20,406.50 21,426.83 22,498.16 23,623.08 24,804.24 Assistant City Manager 20,406.50 21,426.83 22,498.16 23,623.08 24,804.24 Director of Public Works 18,725.63 19,661.91 20,645.01 21,677.26 22,761.13 Deputy City Manager 18,725.63 19,661.91 20,645.01 21,677.26 22,761.13 Community Development Director 18,278.92 19,192.87 20,152.51 21,160.13 22,218.14 Finance Director 18,278.92 19,192.87 20,152.51 21,160.13 22,218.14 Administrative Services Director 18,278.92 19,192.87 20,152.51 21,160.13 22,218.14 Parks & Recreation Director 18,278.92 19,192.87 20,152.51 21,160.13 22,218.14 Communications Director / City Clerk 17,443.38 18,315.54 19,231.32 20,192.88 21,202.53 Other Management - Exempt
Police Captain 17,176.45 18,035.26 18,937.03 19,883.88 20,878.07 Engineering Manager 15,120.04 15,876.05 16,669.85 17,503.34 18,378.50 Police Lieutenant 14,935.84 15,682.63 16,466.75 17,290.09 18,154.59 Assistant Finance Director 14,460.68 15,183.71 15,942.89 16,740.03 17,577.04 Chief Building Official 13,859.14 14,552.10 15,279.70 16,043.68 16,845.87 Economic Development Manager 13,692.74 14,377.38 15,096.24 15,851.06 16,643.61 Information Technology Manager 13,692.74 14,377.38 15,096.24 15,851.06 16,643.61 Human Resources Manager 13,692.74 14,377.38 15,096.24 15,851.06 16,643.61 Planning Manager 13,379.51 14,048.49 14,750.93 15,488.48 16,262.90 Principal Management Analyst 12,960.39 13,608.42 14,288.84 15,003.28 15,753.45 Financial Services Manager 12,617.83 13,248.73 13,911.16 14,606.71 15,337.05 Senior Civil Engineer 12,553.74 13,181.43 13,840.49 14,532.53 15,259.16 Public Works Maintenance Manager 12,370.44 12,988.96 13,638.40 14,320.33 15,036.35 Building/Fleet Maintance Manager 11,752.00 12,339.60 12,956.58 13,604.41 14,284.64 Parks Maintenance Manager 11,504.65 12,079.88 12,683.87 13,318.07 13,983.96 Recreation Manager 11,323.12 11,889.28 12,483.74 13,107.93 13,763.33 Senior Management Analyst 11,269.73 11,833.22 12,424.88 13,046.12 13,698.43 Senior Planner 10,976.09 11,524.90 12,101.15 12,706.20 13,341.50 Associate Civil Engineer 10,916.46 11,462.29 12,035.40 12,637.18 13,269.03 Senior Human Resources Analyst 10,783.86 11,323.05 11,889.21 12,483.67 13,107.87 Public Works Maintenance Superintendent 10,514.26 11,039.98 11,591.98 12,171.57 12,780.14 Sr. Systems Analyst 10,349.51 10,866.98 11,410.33 11,980.83 12,579.87 Senior Accountant 10,176.12 10,684.93 11,219.17 11,780.13 12,369.14 Communications Manager 9,868.25 10,361.66 10,879.73 11,423.72 11,994.91 Assistant Engineer 9,824.67 10,315.90 10,831.69 11,373.27 11,941.92 Management Analyst 9,799.73 10,289.71 10,804.20 11,344.41 11,911.62 Associate Planner 9,544.36 10,021.58 10,522.65 11,048.79 11,601.22 Human Resources Analyst 9,377.06 9,845.91 10,338.21 10,855.12 11,397.88 Parks Maintenance Supervisor 9,190.20 9,649.71 10,132.20 10,638.80 11,170.74 Technology Analyst II 9,148.38 9,605.80 10,086.09 10,590.39 11,119.91 Fleet Supervisor 9,081.75 9,535.83 10,012.62 10,513.26 11,038.92 Accountant II 8,848.49 9,290.91 9,755.46 10,243.24 10,755.40 Assistant Planner 8,589.57 9,019.05 9,470.00 9,943.49 10,440.66 Technology Analyst I 8,057.43 8,460.31 8,883.33 9,327.50 9,793.87 Accountant I 7,963.99 8,362.19 8,780.30 9,219.32 9,680.29 Management Assistant 6,455.99 6,778.79 7,117.73 7,473.61 7,847.29

Page 1 ends

6.11 Attachment 3 - City District Pay Plan for FY 2024-2025

205

Exhibit ACity of Foster City / Estero Municipal Improvement District FY 2024-2025 Pay Plan
Effective July 1, 2024
Hourly
Position Step 1 Step 2 Step 3 Step 4 Step 5
Other Management - Non-Exempt
Deputy City Clerk 45.5457 47.8230 50.2142 52.7249 55.3611 Police Records Supervisor 51.7678 54.3562 57.0740 59.9277 62.9241 Housing Coordinator 56.5369 59.3637 62.3319 65.4485 68.7209 Human Resources Technician 42.4349 44.5566 46.7844 49.1236 51.5798 AFSCME - Maintenance Unit
Public Works Lead Maintenance Worker 42.1107$ 44.2162$ 46.4270$ 48.7483$ 51.1857$ Building Lead Maintenance Worker 41.3424$ 43.4095$ 45.5800$ 47.8590$ 50.2519$ Parks Lead Maintenance Worker 41.3424$ 43.4095$ 45.5800$ 47.8590$ 50.2519$ Irrigation Technician 41.3424$ 43.4095$ 45.5800$ 47.8590$ 50.2519$ Mechanic I 40.8662$ 42.9095$ 45.0550$ 47.3077$ 49.6731$ Building Maintenance Worker II 38.9232$ 40.8694$ 42.9129$ 45.0585$ 47.3114$ Public Works Maintenance Worker II 38.1956$ 40.1054$ 42.1107$ 44.2162$ 46.4270$ Parks Maintenance Worker II 37.4988$ 39.3737$ 41.3424$ 43.4095$ 45.5800$ Equipment Maintenance Worker 37.0669$ 38.9202$ 40.8662$ 42.9095$ 45.0550$ Building Maintenance Worker I 35.3045$ 37.0697$ 38.9232$ 40.8694$ 42.9129$ Public Works Maintenance Worker I 34.6446$ 36.3768$ 38.1956$ 40.1054$ 42.1107$ Parks Maintenance Worker I 34.0125$ 35.7131$ 37.4988$ 39.3737$ 41.3424$ Public Works Maintenance Worker 31.4236$ 32.9948$
Parks Maintenance Worker 30.8504$ 32.3929$
AFSCME - General Unit
Plans Examiner 60.3602$ 63.3782$ 66.5471$ 69.8745$ 73.3682$ Sr. Bldg Inspector 54.7484$ 57.4858$ 60.3601$ 63.3781$ 66.5470$ Building Inspector 49.6584$ 52.1413$ 54.7484$ 57.4858$ 60.3601$ Sr. Engineering Technician 44.0526$ 46.2552$ 48.5680$ 50.9964$ 53.5462$ Recreation Coordinator II 43.5227$ 45.6988$ 47.9837$ 50.3829$ 52.9020$ Social Media / Communication Assistant 41.3790$ 43.4479$ 45.6203$ 47.9013$ 50.2964$ Administrative Assistant II 40.3340$ 42.3507$ 44.4682$ 46.6916$ 49.0262$ Recreation Coordinator I 39.4764$ 41.4502$ 43.5227$ 45.6988$ 47.9837$ Code Enforcement Officer II 39.4086$ 41.3790$ 43.4480$ 45.6204$ 47.9014$ Senior Accounting Specialist 37.1478$ 39.0052$ 40.9555$ 43.0033$ 45.1535$ Administrative Assistant I 36.5841$ 38.4133$ 40.3340$ 42.3507$ 44.4682$ Sr. Comm. Services Officer 35.7448$ 37.5320$ 39.4086$ 41.3790$ 43.4480$ Code Enforcement Officer I 35.7448$ 37.5320$ 39.4086$ 41.3790$ 43.4480$ Accounting Specialist 35.3789$ 37.1478$ 39.0052$ 40.9555$ 43.0033$ Building Services Coordinator 35.3044$ 37.0696$ 38.9231$ 40.8693$ 42.9128$ Police Records Specialist 34.8515$ 36.5941$ 38.4238$ 40.3450$ 42.3622$ Building Permit Technician 34.8515$ 36.5941$ 38.4238$ 40.3450$ 42.3622$ Office Assistant II 32.3380$ 33.9549$ 35.6526$ 37.4352$ 39.3070$ Office Assistant I 29.3315$ 30.7981$
FCPOA
Police Sergeant 70.7665$ 74.3048$ 78.0200$ 81.9210$ 86.0170$ Police Corporal 64.6590$ 67.8920$ 71.2866$ 74.8509$ 78.5934$ Police Dispatch Supervisor 59.3881$ 62.3575$ 65.4754$ 68.7492$ 72.1867$ Police Officer 58.4381$ 61.3600$ 64.4280$ 67.6494$ 71.0319$ Lead Police Dispatcher 54.4003$ 57.1203$ 59.9763$ 62.9751$ 66.1239$ Police Officer Recruit 53.0050$ 55.6552$
Police/Fire Dispatcher 49.3427$ 51.8098$ 54.4003$ 57.1203$ 59.9763$ Hourly / Part-Time / Seasonal
Building Services Coordinator Assistant 19.53$ 20.21$ 20.92$ 21.65$ 22.41$ Recreation Leader III 19.53$ 20.21$ 20.92$ 21.65$ 22.41$ Recreation Leader II 18.22$ 18.86$ 19.51$ 20.20$ 20.92$ Building Serv. Assistant 17.00$ 17.60$ 18.21$ 18.85$ 19.51$ Clerical Assistant 17.00$ 17.60$ 18.21$ 18.85$ 19.51$ Recreation Leader I 17.00$ 17.60$ 18.21$ 18.85$ 19.51$ Department Intern 17.00$ 30.00$
Videographer 20.00$ 30.00$
Hourly

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6.11 Attachment 3 - City District Pay Plan for FY 2024-2025

206

DATE: June 3, 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 Zaheed Danish, Public Works Maintenance Manager
Gonzalo Larios, Public Works Maintenance Superintendent DEPARTMENT: Public Works
SUBJECT: AUTHORIZING THE APPROPRIATION OF $108,222 FROM FUND 401 TO ACCOUNT NO. 401-0960-461-4251 AND
APPROVING PAYMENT TO MICHAEL O’SHAUGHNESSY
CONSTRUCTION, INC. AND MID-PENINSULA WATER DISTRICT
FOR A TOTAL OF $108,221.92 FOR EXPENSES INCURRED

UNDER THE PROCLAMATION OF LOCAL EMERGENCY

RELATED TO MAJOR DAMAGE TO MAIN WATER PIPELINE

RECOMMENDATION
It is recommended that the City Council/Estero Municipal Improvement District (EMID) Board of Directors approve the attached Resolutions authorizing the appropriation of $108,222 from Fund 401 to Account No. 401-0960-461-4251 and authorizing the payment of $96,562 to Michael O’Shaughnessy Construction, Inc. and $11,659.92 to Mid-Peninsula Water District for a total expenditure of $108,221.92 related to the emergency repair of the main water pipeline which was performed under the Proclamation of Local Emergency; and finding the repair of the water main exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) and 15269(b).

EXECUTIVE SUMMARY

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At approximately 8 AM on Sunday, April 7, 2024, a break in the main water line was discovered that caused significant damage to the water pipeline and that, if the repair could not be made, the water supply to the City could be severely impacted. As a result of the conditions of disaster, the City Manager issued a Proclamation of Local Emergency. Public Contract Code and the Foster City Municipal Code (FCMC) provide that during an emergency, the agency may procure necessary equipment, services and supplies without giving notice for bids to let contracts.

EMID received invoices from Michael O’Shaughnessy Construction Inc. (Attachment 3) and Mid-Peninsula Water District (Attachment 4) related to the emergency repair. It is requested that the District Board appropriate $108,222 to fund these two invoices and authorize processing of the invoices for payment based on the declaration of emergency.

There are no additional invoices anticipated as a result of the emergency.

BACKGROUND/ANALYSIS
The Estero Municipal Improvement District (EMID) receives 100% of its water supply from the San Francisco Public Utilities Commission (SFPUC) through a single 24-inch high pressure water main. This water main travels underground from Crystal Springs Reservoir to the four water storage tanks that serve Foster City before being distributed to water customers throughout the city.

At approximately 8 AM on Sunday, April 7, 2024, a break in the main water line was discovered along E. Third Avenue north of Foster City Boulevard. This break caused significant damage to the water pipeline and it was determined that, if the repair could not be made, the water supply to the City could be severely impacted. Staff responded immediately and began to locate and fix the leak but determined that outside resources were necessary. As a result of the conditions of disaster, the City Manager, in his capacity as Director of Emergency Services, determined that a “local emergency” existed and issued a Proclamation of Local Emergency on April 8, 2024. The City Council passed Resolution No. 2024-30 (Attachment 5) on April 15, 2024, ratifying the City Manager’s local emergency declaration.

Public Contract Code 22050 and Chapter 3.04 of the FCMC provide that during an emergency, a public agency may take immediate action required by that emergency to procure the necessary equipment, services and supplies without giving notice for bids to let contracts.

City Council terminated the Proclamation of Local Emergency on May 6, 2024, after determining that the conditions that caused the local emergency had been resolved.

EMID received two invoices related to the water distribution system emergency. It is requested that the District Board appropriate the necessary funding to the Water Division Contractual Services line item to fund these two invoices and authorize processing of the invoices for payment based on the declaration of emergency.

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Michael O’Shaughnessy Construction Inc. provided labor, materials and equipment for a total cost of $96,562. Mid-Peninsula Water District provided an emergency water supply through its intertie connection to the EMID’s distribution system. The total cost for the water provided during the emergency is $11,659.92. There are no additional invoices anticipated as a result of the emergency.

CEQA
The repair of the water main is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) as the repair involves replacement of existing water lines located on the same site and for the same purpose as those replaced. Additionally, the repair was undertaken as an emergency project to repair publicly owned facilities necessary to maintain service essential to the public health, safety or welfare pursuant to CEQA Guidelines section 15269(b).

FISCAL IMPACT
This expenditure was unplanned and therefore requires appropriation of funding in order to process payment in the amount of $108,222 from Fund 401 to Account No. 401-0960- 461-4251 and authorization of the payment of $96,562 to Michael O’Shaughnessy Construction, Inc and $11,659.92 to Mid-Peninsula Water District for a total expenditure of $108,221.92

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

Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Invoice from Michael O’Shaughnessy Construction, Inc.

Attachment 4 – Invoice from Mid-Peninsula Water District Attachment 5 – City Resolution No. 2024-30

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RESOLUTION NO.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY AUTHORIZING THE APPROPRIATION OF $108,222 FROM FUND 401 TO ACCOUNT NO. 401-0960-461- 4251 AND APPROVING PAYMENT TO MICHAEL O’SHAUGHNESSY CONSTRUCTION, INC. AND MID-PENINSULA WATER DISTRICT FOR A TOTAL OF $108,221.92 FOR

EXPENSES INCURRED UNDER THE PROCLAMATION OF LOCAL EMERGENCY RELATED TO MAJOR DAMAGE TO MAIN WATER PIPELINE; AND FINDING THE REPAIR

OF THE WATER MAIN EXEMPT FROM REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT(CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15302, CLASS 2 (REPLACEMENT OR RECONSTRUCTION) AND 15269(B)

CITY OF FOSTER CITY
WHEREAS, a break in the main water line that serves Foster City was discovered on Sunday, April 7, 2024, that caused significant damage to the water pipeline; and WHEREAS, as a result of the conditions of disaster, the City Manager issued a Proclamation of Local Emergency, which was ratified by the City Council on April 15, 2024; and
WHEREAS, the Public Contract Code and the Municipal Code provide that during an emergency, the agency may procure necessary equipment, services and supplies without giving notice for bids to let contracts; and
WHEREAS, EMID received invoices from Michael O’Shaughnessy Construction Inc. and Mid-Peninsula Water District related to the emergency repair.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foster City does herby:

1. Find the repair of the water main exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) as the repair involves replacement of existing water lines located on the same site and for the same purpose as those replaced. Additionally, the repair was undertaken as an emergency project to repair publicly owned facilities necessary to maintain service essential to the public health, safety or welfare pursuant to CEQA Guidelines section 15269(b); and

2. Approve the appropriation of $108,222 from fund 401 to Account No. 401-0960- 461-4251; and

3. Approve payment of $96,562 to Michael O’Shaughnessy Construction Inc; and

4. Approve payment of $11,569.92 to Mid-Peninsula Water District.

6.12 Attachment 1 - City Resolution

210

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on June 3, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
______________________________________

PRISCILLA SCHAUS, CITY CLERK

6.12 Attachment 1 - City Resolution

211

RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL IMPROVEMENT DISTRICT AUTHORIZING THE APPROPRIATION OF $108,222 FROM FUND 401 TO ACCOUNT NO. 401-0960-461-4251 AND APPROVING PAYMENT TO MICHAEL O’SHAUGHNESSY CONSTRUCTION, INC. AND MID-PENINSULA WATER DISTRICT FOR A TOTAL OF $108,221.92 FOR EXPENSES INCURRED UNDER THE

PROCLAMATION OF LOCAL EMERGENCY RELATED TO MAJOR DAMAGE TO MAIN WATER PIPELINE; AND FINDING THE REPAIR OF THE WATER MAIN EXEMPT FROM

REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT(CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15302, CLASS 2 (REPLACEMENT OR RECONSTRUCTION) AND 15269(B)

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, a break in the main water line that serves Foster City was discovered on Sunday, April 7, 2024, that caused significant damage to the water pipeline; and WHEREAS, as a result of the conditions of disaster, the City Manager issued a Proclamation of Local Emergency, which was ratified by the City Council on April 15, 2024; and
WHEREAS, the Public Contract Code and the Municipal Code provide that during an emergency, the agency may procure necessary equipment, services and supplies without giving notice for bids to let contracts; and
WHEREAS, EMID received invoices from Michael O’Shaughnessy Construction Inc. and Mid-Peninsula Water District related to the emergency repair.

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

2. Appropriate $108,222 from fund 401 to Account No. 401-0960-461-4251; and

3. Authorize payment of $96,562 to Michael O’Shaughnessy Construction Inc; and

4. Authorize payment of $11,569.92 to Mid-Peninsula Water District.

6.12 Attachment 2 - EMID Resolution

212

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on June 3, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________

PATRICK SULLIVAN, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.12 Attachment 2 - EMID Resolution

213

48 Riverton Drive
San Francisco, CA 94132
(41 5)799-7043
[email protected] MICHAEI O'SHAUGHNESSY
CONSTRUCTION INC.

Invoice 3314

BILL TO
City of Foster City
610 Foster City Blvd
Foster City, CA 94404
DATE
05/06/2024

DUE DATE
05/06/2024
Thank you for your business
Michael TOT AL DUE $96,562.00
THANK YOU.

6.12 Attachment 3 - Invoice from Michael O'Shaughnessy Construction Inc.

214

Mid-Peninsula Water District INVOICE
1 )75 0ld County Road, Suite A
PO Box 129
Belmont Ca 94002
Phone 650.591.8941 Fax 650.59"l.4998
INVOICE # 2417-0211
DATE: 4/23/24
Bill To: For:

City of Foster City / EMID
610 Foster City Blvd.

Foster City, CA 94404
Water usage from Foster city intertie
At Baffin Street

DESCRIPTION AMOUNT
Water usage - April 7, 2024-April 9, 2024
Opening read- 27,736,000 (gallons)
Closing read- 28,586,000 (gallons)
Total usage (850,000 gallons) 1, 136 units of water 5 units @ $ 8.91
1,131 units @ $10.27
$44.55
$11 ,615.37
TOTAL $11,659.92
Make all checks payable to Mid-Peninsula Water District If you have any questions concerning this invoice, contact Michael Anderson, Operations Supervisor, 650.591.8941.

THANK YOU FOR YOUR BUSINESS!

6.12 Attachment 4 - Invoice from Mid-Peninsula Water District

215

RESOLUTION NO. 2024- 30

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

THE PROCLAMATION OF EXISTENCE OF A LOCAL EMERGENCY BY THE CITY

MANAGER OF THE CITY OF FOSTER CITY RELATED TO MAJOR DAMAGE TO THE CITY’S MAIN WATER PIPELINE

CITY OF FOSTER CITY
WHEREAS, Government Code section 8630 and section 2.40.070 ( A) of the Municipal Code empower the Director of Emergency Services to proclaim the existence of a local emergency when the City of Foster City (“City”) is affected or likely to be affected by an emergency, as that term is defined in Section 2.40.020 and the City Council is not in session; and
WHEREAS, the Director of Director of Emergency Services is iden tified in the Municipal Code as the City Manager; and
WHEREAS, the City’s main water pipeline providing potable water to the City residents and businesses sustained major damage on April 7, 2024 resulting in significant loss of water to the City; and
WHEREAS, the City Manager, acting as Director of Emergency Services, did find that conditions of disaster to persons and property within this City were met due to the significant damage to the water pipeline that could impact water supply; and WHEREAS, in response to these developments, the City Manager in his capacity as the City’s Director of Emergency Services proclaimed the existence of a local emergency on April 8, 2024 at approximately 12:35 p.m.; and WHEREAS, these conditions and the needed response are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the use of outside contractors to conduct emergency repair pursuant to Foster City Municipal Code Chapters 2.40, 3.04 and without giving notice for bids to let the contract, pursuant to Public Contract Code 22050; and
WHEREAS, as contemplated in the Emergency Service Act contained in Government Code Section 8550 et seq., including Section 8558( c), a local emergency exists because of the existence of conditions of disaster to the safety of persons and property within the City caused by the aforesaid conditions which are beyond the control of the services, personnel, equipment, and facilities of the City; and WHEREAS, the City Clerk has provided written notification of this Proclamation and other necessary documents to the appropriate departments within San Mateo DocuSign Envelope ID: D0445212- A2E7- 46AC- 9984- 1FA54E986C1F

6.12 Attachment 5 - City Resolution No. 2024-30

216

City Resolution No. 2023- 30
County and the California Governor’s Office of Emergency Services pursuant to Government Code 8607.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby resolve, declare, determine, and order as follows:

1. The Proclamation of Existence of a Local Emergency executed on April 8, 2024, attached hereto as “Attachment A” is hereby ratified and approved by the City Council; and

2. In accordance with Government Code section 8630, this local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of Foster City, and it shall be terminated at the earliest possible date that conditions warrant.

3. The City Council shall review this Resolution as necessary pursuant to Government Code section 8630 and Public Contract Code section 22050 until the Proclamation is terminated.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 15th day of April, 2024, by the following vote:

AYES: Councilmembers Froomin, Hindi, Jimenez, Kiesel, and Mayor Sullivan NOES: None
ABSENT: None
ABSTAIN: None

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK
DocuSign Envelope ID: D0445212- A2E7- 46AC- 9984- 1FA54E986C1F

6.12 Attachment 5 - City Resolution No. 2024-30

217

Attachment A

PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY BY THE CITY

MANAGER OF THE CITY OF FOSTER CITY RELATED TO MAJOR DAMAGE TO

WATER PIPELINE
WHEREAS, Government Code section 8630 and section 2.40.070 ( A) of the Municipal Code empower the Director of Emergency Services to proclaim the existence of a local emergency when the City of Foster City (“City”) is affected or likely to be affected by an emergency, as that term is defined in Section 2.40.020 and the City Council is not in session; and
WHEREAS, the Director of Emergency Services is identified in the Municipal Code as the City Manager; and
WHEREAS, the City’s main water pipeline providing potable water to the City residents and businesses sustained major damage on April 7, 2024 resulting in significant loss of water to the City; and
WHEREAS, the City Manager, acting as Director of Emergency Services, does find that conditions of disaster to persons and property within this City have been met due to the significant damage to the water pipeline that could impact water supply; and WHEREAS, these conditions and the needed response are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City, requiring the use of outside contractors to conduct emergency repair pursuant to Foster City Municipal Code Chapters 2.40, 3.04 and without giving notice for bids to let the contract, pursuant to Public Contract Code 22050; and
WHEREAS, the City Council is not in session and cannot immediately be called into session; and
WHEREAS, this Proclamation shall be subject to confirmation by the City Council within seven days of execution; and
WHEREAS, the City will provide written notification of this Proclamation and other necessary documents to the appropriate departments within San Mateo County and the California Governor’s Office of Emergency Services pursuant to Government Code 8607.

DocuSign Envelope ID: D0445212- A2E7- 46AC- 9984- 1FA54E986C1F

6.12 Attachment 5 - City Resolution No. 2024-30

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Attachment A
NOW, THEREFORE, IT IS HEREBY PROCLAIMED that a local emergency now exists throughout said City.

IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers functions and duties of the emergency organization of this City shall be those prescribed by state law, by ordinances, and resolutions of this City, and that this emergency proclamation shall expire on April 15, 2024 unless ratified and extended by the City Council of the City of Foster City.

Dated: April 8, 2024
Stefan Chatwin, City Manager
DocuSign Envelope ID: D0445212- A2E7- 46AC- 9984- 1FA54E986C1F

6.12 Attachment 5 - City Resolution No. 2024-30

219

DATE: June 3, 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/District Engineer Zaheed Danish, Public Works Maintenance Manager
Gonzalo Larios, Public Works Maintenance Superintendent DEPARTMENT: Public Works
SUBJECT: EXPENDITURE OF $639,525.79 FROM FUND ACCOUNT NO. 401-0960-461-4384 FOR THE PURCHASE OF A VAC-CON

HYDRO EXCAVATOR FROM MUNICIPAL MAINTENANCE
EQUIPMENT, INC.

RECOMMENDATION
It is recommended that Estero Municipal Improvement District (EMID) Board of Directors approve the attached Resolution authorizing the purchase of a second vacuum truck from Municipal Maintenance Equipment, Inc. in the amount of $639,525.79 from Fund Account No. 401-0960-461-4384 to assist the Water Division with hydro excavation.

EXECUTIVE SUMMARY
The water division currently depends on one (1) vacuum truck to hydro excavate when repairing water leaks, which is the most time and energy efficient way to access Foster City’s underground utilities. This is especially important as time is of the essence in a water repair emergency. Hydro excavation also reduces the risk of injury for staff compared to wielding hand tools – picks and shovels.

6.13 6.13 Staff Report

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When the vacuum truck is down for repairs, EMID has depended upon mutual aid from the City of San Mateo to provide a back-up unit. However, because of the vital nature of this specific unit, most cities have more than one vacuum truck. EMID’s one vacuum truck is several years old, gets extensive use and, although it is still serviceable, EMID is spending increasing amounts of time and money to maintain it.

If approved, this second vacuum truck will be purchased from Municipal Maintenance Equipment, Inc. in the amount of $639,525.79 from Fund Account No. 401-0960-461- 4384 and it will then be added to the Vehicle Replacement List for future replacement.

BACKGROUND/ANALYSIS
Vacuum trucks are used primarily for hydro excavation, sewer sanitation line cleaning, catch basin and storm drain cleaning and containment pit maintenance.

Currently the EMID wastewater and water divisions share a vacuum truck, which can cause work scheduling conflicts for this important unit. Purchasing an additional vacuum truck will allow both divisions to remain efficient in their work and will provide a back-up in the event that either unit is down for emergency or routine maintenance.

The vacuum truck is a specialized unit that is vital to the Public Works department for routine removal of debris as well as emergency excavations.

Municipal Code Section 3.04.110.G authorizes purchases that use bids from other public agencies that are not older than six months. The pricing from Municipal Maintenance Equipment, Inc. was obtained through Sourcewell, formerly known as National Joints Powers Association (NJPA), which was established with the statutory purpose to assist public agencies in meeting specific procurement needs which are more efficiently delivered cooperatively than by an entity individually. The City received pricing for this specialized vehicle from Municipal Maintenance Equipment, Inc. which has established pricing through a compliant bid process. The proposed vacuum truck is a Vac-Con VMXT350H/410 with a Freightliner 114SD Plus chassis.

CEQA
Exempt Pursuant to CEQA Guideline Section 15301(b) Class 1 – Existing Facilities

FISCAL IMPACT
This expenditure is planned and funded in the current fiscal year. Due to rising costs, an additional $39,525.79 was transferred to address the funding gap. Funds have been budgeted and are available for this purchase in the amount of $639,525.79 for the new Vac-Con Hydro excavator in Fund Account No. 401-0960-461-4384. The funds are anticipated to be requested to be carried over to FY 2024-2025 in order to make final payment since build-up of the vehicle is expected to span Fiscal Years.

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

Attachment 1 – Resolution
Attachment 2 – Sourcewell Contract No. 101221-VAC

6.13 6.13 Staff Report

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2 1
6 2
RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL IMPROVEMENT DISTRICT AUTHORIZING THE EXPENDITURE OF $639,525.79 FROM FUND ACCOUNT NO. 401-0960-461-4384 FOR THE PURCHASE OF A VAC- CON HYDRO EXCAVATOR FROM MUNICIPAL MAINTENANCE EQUIPMENT, INC.

AND FINDING THAT THE PROJECT IS CATEGORICALLY EXEMPT PURSUANT TO

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINE SECTION 15301(B) – EXISTING FACILITIES

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, vacuum trucks are the most time and energy efficient way to hydro excavate in order to expose the EMID’s underground utilities for emergency repair or routine maintenance; and
WHEREAS, hydro excavation reduces the risk of injury for staff compared to hand excavating; and
WHEREAS, purchasing a second vacuum truck will enable two crews to be deployed simultaneously and will also provide redundancy in the event that one unit is down for repair or maintenance; and
WHEREAS, funding is available for the purchase in the FY 2023-2024 budget.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby authorize the purchase of a new vacuum truck from Municipal Maintenance Equipment, Inc., in the amount of $639,525.79 from Fund Account 401-0960-461-4384.

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on June 3, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________

PATRICK SULLIVAN, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.13 Attachment 1 - Resolution

223

6.13 Attachment 2 - Sourcewell Contract No.101221-VAC

224

6.13 Attachment 2 - Sourcewell Contract No.101221-VAC

225

6.13 Attachment 2 - Sourcewell Contract No.101221-VAC

226

6.13 Attachment 2 - Sourcewell Contract No.101221-VAC

227

6 5
5 DATE: June 3, 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
DEPARTMENT: Public Works
SUBJECT: APPROVING EXTENSION OF ONE YEAR TO THE

WATER/WASTEWATER RATE ASSISTANCE PROGRAM
(W/WRAP) UNTIL JUNE 30, 2025

RECOMMENDATION
It is recommended that the EMID Board of Directors (District Board) adopt a resolution approving a one-year extension, expiring June 30, 2025, of the Estero Municipal Improvement District Water/Wastewater Rate Assistance Program (W/WRAP) and finding the approval of the extension exempt from review under the California Environmental Quality Act (CEQA) 15061(b)(3). The W/WRAP provides discounts for eligible applicants of $15 per water and wastewater account per month. Upon the conclusion of the extended year, W/WRAP shall sunset unless extended by the EMID Board.

EXECUTIVE SUMMARY
The District Board implemented W/WRAP starting in Rate Year 2020-2021 for customers who demonstrated financial need in response to projected rate increases in both water and wastewater rates. The District Board extended W/WRAP to June 30, 2024 and allowed further extensions by the District Board.

W/WRAP provides a flat $15/month credit for each eligible Water and Wastewater account, which is 16% to 18% of the total water and wastewater bills for two-person households with typical consumption. Based upon an estimated number of eligible

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6 5
5 customers, W/WRAP may fiscally impact EMID as much as $117,000 per year. As of April 30, 2024, there were thirty (30) customers enrolled in W/WRAP for a total combined annual fiscal impact of $10,800 for both Water and Wastewater services. Staff included $9,000 as line items in both water and wastewater preliminary budgets for FY 2024-2025 to fund the program. W/WRAP must be funded from non-rate sources.

Through the first ten (10) months of FY 2023-2024, revenue from delinquent water payments totaled $50,200 and revenue from delinquent wastewater payments totaled $51,500 which are sufficient to fund W/WRAP in each enterprise.

Staff has made minor adjustments to the program guidelines and updated the application form with qualifying income information for FY 2024-2025. The Application and Guidelines are Attachments 2 and 3 to this report.

BACKGROUND
As part of the FY 2024-2025 budget preparation, EMID engaged consultant Bartle Wells Associates (BWA) to develop financial projections for its Water and Wastewater Enterprises and make rate recommendations to cover maintenance, operations, and capital improvements for FY 2024-2025 and the following five-year period. The BWA report anticipates average water rate increases of 4.0% per year and wastewater rate increases of 2.0% per year for single family homes for the five-year period.

A complete discussion of water and wastewater rates is included as a separate agenda item for the June 3, 2024 City Council meeting.

In May 2020, the District Board approved W/WRAP for customers who demonstrated financial need. Per Resolution No. 3513, W/WRAP had a start date of July 1, 2020, and continued for one (1) year, until June 30, 2021, when W/WRAP would sunset unless extended by the District Board. The District Board subsequently approved Resolutions 3585, 3651, and 3727 extending W/WRAP through June 30, 2024.

ANALYSIS
W/WRAP utilizes the same financial need thresholds as the Pacific Gas and Electric Company (PG&E) California Alternate Rates for Energy (CARE) discount program. EMID customers fill out an application and provide documentation that they are enrolled in the PG&E CARE program or other proof of income.

Based on the 975 customers in Foster City that are enrolled in the PG&E CARE Program.

BWA estimates that approximately one-third, or 325 customers, could be eligible for W/WRAP. There are fewer eligible W/WRAP customers because multi-family units that are not separately metered and/or where the bill is not paid by the individual units are not eligible for W/WRAP.

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6 5
5 Based upon the estimated number of eligible customers, a $15/month discount per service could have a fiscal impact to EMID of as much as $117,000 per year for both Water and Wastewater accounts. Currently there are thirty (30) customers enrolled in W/WRAP for a total annual fiscal impact of $10,800.

A single-family account with a two-person household typically uses an average of fifty (50) gallons per person per day of potable water, which equals four (4) units of water per household per month. Under the proposed Rate Year 2024-2025 water rates, meters have a fixed charge of $28.85 and residential accounts using less than 20 units of water per billing cycle are billed $6.60 per unit of water. Therefore, the Water Meter Charge of $28.85 + the Water Consumption rate of $26.40 ($6.60 x 4 units) = $55.25/month water charge. The 2024-2025 single-family rate for wastewater collection is $133.49 per month and separately metered multi-family units rate is $112.13 per month.

As shown in Table 1, the total cost for an average household under this scenario for both water and wastewater is $188.74 for single family homes and $167.38 for multi- family units. The monthly program credit of $30 ($15 each for water and wastewater) will result in an approximate 16% to 18% reduction for qualifying customers in Rate Year 2024- 2025. Because it is a flat credit, homes that use less water receive a higher overall percentage benefit and customers that use more water receive a lower overall percentage benefit, which is consistent with EMID’s interest in encouraging water conservation.

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

Staff recommends continuing W/WRAP for an additional one-year term, which allows for the continued evaluation of both EMID’s revenue sources and community need. At the conclusion of the one-year extension, staff will bring a resolution back to the District Board to extend or discontinue W/WRAP.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The adoption of the resolution approving the extension of W/WRAP is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty

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6 5
5 that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guideline Section 15061(b)(3)).

FISCAL IMPACT
Based upon the currently enrolled customers, the annual cost of W/WRAP is $10,800.

Based on the estimated number of potentially eligible customers, the discount of $15/month each per Water and Wastewater account could cost as much as $117,000 per year.

W/WRAP is required to be funded from non-rate sources. Through the first ten (10) months of FY 2023-2024, revenue from delinquent water payments totaled $50,200 and revenue from delinquent wastewater payments totaled $51,500 which are sufficient to fund the program in each enterprise.

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

Attachment 1 – Resolution
Attachment 2 – WWRAP Program Guidelines
Attachment 3 – W/WRAP Application FY 2024-2025

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RESOLUTION NO.

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT APPROVING THE EXTENSION OF A

WATER/WASTEWATER RATE ASSISTANCE PROGRAM (W/WRAP) THROUGH JUNE 30, 2025; AND FINDING THE APPROVAL OF THE EXTENSION EXEMPT

FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) 15061(b)(3)

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the District is projecting increases in both the Water and Wastewater Rates over the next five years; and
WHEREAS, in recognition of projected rate increases, in Fiscal Year 2020-2021, the District Board implemented a Pilot Water/Wastewater Rate Assistance Program for customers who demonstrate financial need; and
WHEREAS, the Water/Wastewater Rate Assistance Program provides for a $15 per month discount each for water and wastewater accounts; and WHEREAS, the Water/Wastewater Rate Assistance Program was extended until June 30, 2024, at which time it will automatically sunset unless extended by the EMID Board; and
WHEREAS, a non-rate revenue source must be used to offset the cost in order to maintain compliance with California Proposition 218.

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

1. Find that the adoption of the resolution approving the extension of W/WRAP is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA pursuant to CEQA Guideline Section 15061(b)(3).

2. Extend the Water/Wastewater Rate Assistance Program of $15 each per water and wastewater account per month for eligible applicants until June 30, 2025, when the program will automatically sunset unless extended by the EMID Board, and

3. Authorize the use of delinquent payment fees as the revenue source for FY 2024- 2025 program costs; and

6.14 Attachment 1 - Resolution

232

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

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 3 rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________

PATRICK SULLIVAN, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.14 Attachment 1 - Resolution

233

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
1 | P a g e Rev 2024-07-01
The intent of the Estero Municipal Improvement District Water/Wastewater Rate Assistance Program (W/WRAP) is to provide rate relief to account holders who demonstrate need. In recognition of increases in the Water and Wastewater Rates, the Estero Municipal Improvement District implemented this discount program to make rates more affordable for qualifying customers.

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

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

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

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

A. ENROLLMENT IN PG&E’S RATE ASSISTANCE CARE PROGRAM – Submit a current PG&E bill showing enrollment in CARE program

6.14 Attachment 2 - WWRAP Program Guidelines

234

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
2 | P a g e Rev 2024-07-01
B. PARTICIPATION IN PUBLIC ASSISTANCE PROGRAM(S) – Submit WIC voucher, recent award letter(s) OR letter of participation in one or more of the following program(s) •Women, Infants, and Children (WIC)
•CalFresh/SNAP (Food Stamps)
•CalWORKs (TANF) or Tribal TANF
•Head Start Income Eligible (Tribal Only)
•Supplemental Security Income (SSI)
•Medi-Cal for Families (Healthy Families A & B)
•National School Lunch Program (NSLP)
•Bureau of Indian Affairs General Assistance
•Medicaid/Medi-Cal
•Pacific Gas and Electric Company Low Income Home Energy Assistance Program (LIHEAP)
C. MAXIMUM HOUSEHOLD INCOME THRESHOLD – Submit documentation of total of all household members' incomes from all eligible sources. Maximum qualifying total gross annual household income is listed in the most current W/WRAP application. Income sources include, but are not limited to the following:
•Wages
•Salaries
•Interest and dividends
•Spousal and child support payments
•Public assistance payments
•Social Security and pensions
•Housing and military subsidies
•Rental income
•Self-employment income
•Employment-related, non-cash income

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

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235

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Guidelines
3 | P a g e Rev 2024-07-01
f.The incentive program may be terminated by the EMID at any time without notice.

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

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

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236

Income Qualification
(7/1/2024 - 6/30/2025)
Household Size Total Gross Annual Income
1-2 Persons $39,440
3 Persons $49,720
4 Persons $60,000
5 Persons $70,280
Each additional person, add $10,280
Application
If you are eligible and would like to participate, Submit PG&E bill showing enrollment in the CARE program or other proof of income required by this application along with the completed application to:

Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
610 Foster City Boulevard
Foster City, CA 94404
Estero Municipal Improvement District
Water/Wastewater Rate Assistance Program (W/WRAP)
Program Description
The W/WRAP is intended to provide rate relief to eligible and qualified account holders who demonstrate need by providing up to $15 per month each on their qualifying Water and Wastewater accounts, not to exceed a $30 per month discount per customer. In no case shall the discount exceed the amount of the monthly bill.

A copy of a PG&E bill showing enrollment in the CARE rate assistance program along with this completed application will qualify applicants for the W/WRAP program. Customers who do not participate in CARE can qualify by submitting the application and other documentation of income identified in this application. Once the application is processed and the account is enrolled, the discount will automatically appear on the following month’s bill.

Program Qualification
To qualify for the discount you must meet the following requirements:
•The bill must be in your name.
•You must live at the address to which the discount applies. •Your home may not share a water meter.
•Another person (besides your spouse) may not claim the applicant as a dependent on an income tax return.
•You must demonstrate that you meet the eligibility requirements.

6.14 Attachment 3 - WWRAP Application FY 2024-2025

237

APPLICATION FOR WATER/WASTEWATER

RATE ASSISTANCE PROGRAM (W/WRAP)
(Please type or print legibly)
1 I am a primary residential customer of Estero Municipal Improvement District
(Application must be in the account holder’s name)
______________________________________
Name as shown on your EMID account
_______________________________________
Address where you receive water service
-
EMID Account Number (11 digits)
Daytime Phone: __________________________
# of Adults: _________ # of Children: _________
Total residents in household: _______________
2A Public Assistance Program Eligibility
CHECK all programs you participate in, then GO TO section 3 Medicaid/Medi-Cal (under age 65)
Medicaid/Medi-Cal (age 65 and older)
SSI
Food Stamps/SNAP
LIHEAP
WIC
Healthy Families A & B
TANF or Tribal TANF
NSL FREE Lunch Program
Bureau of Indian Affairs General Assistance
Head Start Income Eligible (Tribal Only)
If you do not participate in any of the above programs, GO TO section 2B
2B Household Income Eligibility
Check all sources of household income.
Pensions
Social Security
SSP, SSDI
Interests/Dividends from: Savings Accounts, Stocks, Bonds or Retirement Accounts
Wages and/or Profits from Self-Employment
Rental or Royalty Income
Unemployment Benefits
Disability or Workers Compensation Payments
Scholarships, Grants or Other Aid for Living Expenses
Insurance or Legal Settlements
Spousal or Child support
Cash and/or Other Income
Total Annual Household Income
$ ,
3 Declaration (Read and Sign)
I state that the information I have provided in this application is true and correct. I agree to provide proof of income if asked. I agree to inform EMID if I no longer qualify to receive the discount. I understand that if I receive the discount without qualifying for it, I may be required to pay back the discount I received. I understand that EMID can share my information with other utilities or their agents for the purpose of enrolling me in their assistance programs.

X
Customer Signature Date

CITY APPROVAL
Public Works reviewed by Public Works approved by
Finance reviewed by Finance approved by

6.14 Attachment 3 - WWRAP Application FY 2024-2025

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1 DATE: June 3, 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/District Engineer DEPARTMENT: Public Works
SUBJECT: PUBLIC HEARING AND RESOLUTIONS ESTABLISHING WATER RATES FOR FISCAL YEAR 2024-2025

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

1. Open the Public Hearing to receive comments on proposed Water Rates for Fiscal Year 2024-2025; and

2.After considering the staff report and the public testimony and determining that a majority protest does not exist, adopt the attached resolution amending the Master Fees and Service Charges Schedule establishing new Water Rates effective July 1, 2024.

EXECUTIVE SUMMARY
On March 25, 2024, the Council/EMID Board held a Budget Study Session to consider an analysis of proposed water rates for FY 2024-2025 conducted by EMID's rate consultant, Bartle Wells Associates (BWA). Pursuant to direction received from the Council/EMID Board at that meeting, staff prepared a public hearing notice of the proposed adoption of maximum new water rates for FY 2024-2025.

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1 In conformance with Proposition 218, a public hearing notice with the proposed rates was mailed to all record property owners and customers of record on April 19, 2024.

BWA recommends that EMID implement a 3.8% volumetric rate increase and a 4.5% meter charge increase for Rate Year 2024-2025 Water Rates.

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

BACKGROUND
EMID provides water service to a population of approximately 36,500. Over 80% of all water accounts utilize the smallest meter size (3/4”) which is typically associated with single family residential accounts. There are approximately 8,256 water accounts, including both water service and private fire protection service accounts.

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

On March 25, 2024, the Council/EMID Board held a Budget Study Session regarding water rates for FY 2024-2025. At the Budget Study Session, the Council/EMID Board considered information developed by EMID's rate consultant, BWA. Based upon that analysis, the Council/EMID Board directed staff to prepare a Proposition 218 notice for an adjustment of water rates for FY 2024-2025 per the consultant’s analysis. Pursuant to that direction and in conformance with Proposition 218, staff prepared a public hearing notice that included the proposed water rates. EMID mailed the public hearing notice with the proposed rates by April 19, 2024. As required, this notice described the proposed increases to water rates for FY 2024-2025.

ANALYSIS
BWA recommends that EMID implement a 3.8% volumetric rate increase and a 4.5% meter charge increase for Rate Year 2024-2025 Water Rates.

The proposed rates will provide adequate revenue for operations, capital expenditures and transfers, account for water loss, and maintain the operating fund balance at or above target levels.

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1 •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. EMID’s projected operating expenditures are anticipated to increase over the next five years by 22%. •Capital Funding: EMID’s strategy for funding long-term capital water improvements calls for a transfer of $1,000,000 per year from water operating revenues to the City’s Capital Improvement Fund over the next fifteen (15) years. •Conservation Costs: The rate model includes an allocation of $200,000 to the Water Sustainability Rebate Program for FY 2024-2025 to continue supporting voluntary water conservation efforts. The FY 2024-2025 conservation budget includes an additional $50,000, which will be drawn from reserves typically collected from “tier 2” rates that are set aside for this purpose. EMID 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.

Table 7 from the BWA analysis provides a comparison of current water rates to proposed rates.

A significant driver for the proposed rate increases is to smooth EMID rate adjustments due to projected increases in the SFPUC wholesale water rates and to provide 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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1 necessary revenue for the maintenance, operation and capital costs associated with the water distribution enterprise over a five-year term. SFPUC rates are identified to increase by 8.8% from $5.21 to $5.67/ centum cubic feet (ccf) for the next year. Although this increase is $0.12 higher per ccf than originally projected in the BWA study, the additional cost is absorbed via the operating fund without a need to update the rate recommendation.

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

The Council/EMID Board has implemented a long-term rate smoothing model that considers long-range projections for wholesale water rates and significant capital improvements and maintains rate increases at no greater than 10% per year. The proposed FY 2024-2025 rates were prepared using a 15-year model, which has proven to be successful in dampening rate spikes.

Table 9 - Projected Water Rate Impacts provides projections for future rate impacts for single family ratepayers in FY 2024-2025 and into the future. However, only the rates for FY 2024-2025 are being adopted at this time.

Rate Survey
BWA surveyed communities along the San Francisco Peninsula to compare EMID’s typical residential monthly water bill with neighboring communities. Since it is unknown what the comparator agencies are proposing for FY 2024-2025, EMID compared its FY 2023-2024 monthly residential water bills for a single-family customer to the FY 2023- 2024 rates for the neighboring agencies. For FY 2023-2024, the average water bill for the region is $106.08 per month and the District’s FY 2023-2024 average residential water bill is $78.48 per month, or about 26% less than the current average of neighboring communities. The results of the survey are summarized in the BWA report on page 13.

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

Attachment 3 is the Mailing Transaction Receipt for the Notice of Public Hearing that was prepared and mailed out by April 19, 2024, to property owners of record and non- owner account holders for the 8,256 water accounts served by EMID. The rate notice establishes the highest rate that EMID is permitted to adopt at this Public Hearing.

EMID may adopt rates lower than the rates included in the Proposition 218 public hearing notice, but it may not adopt rates higher than those in the public hearing notice.

Per the requirements of Proposition 218, if more than a majority of parcels receiving water services protest any proposed rate increase, the Council/EMID Board may not implement the increases. The City Clerk/District Secretary may only count the submitted written protests. As of May 21, 2024, the City/District had received three (3) written protests. Protests may be submitted up to the close of the Public Hearing. A final number of protests will be reported at the Council/EMID Board meeting, and if there is not a majority protest, then the Council/EMID Board may adopt the noticed rates.

Public Notices for this meeting were advertised in compliance with applicable State statutes and local ordinances. All ratepayers were notified of the proposed rate increases by mail. If the Council/EMID Board approves the proposed rates, no further notices will be sent to ratepayers other than a note on the bills indicating that rates were approved and will be effective on July 1, 2024, and that more information can be found on the City/District’s website or by calling the City/District.

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

FISCAL IMPACT
Proposed water rates for FY 2024-2025 will sufficiently cover the projected system expenditures while adhering to budget policy objectives established by the Council/EMID Board related to enterprise funds. All fiscal impacts for the water system are borne by water system customers. There is no General Fund impact.

Staff prepared the attached resolutions to incorporate the rate changes into the Master Fees and Service Charge Schedule. The proposed rates are based upon the data that was reviewed by, and direction received from, the Council/EMID Board at its March 25, 2024 meeting.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA

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1 Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 - City Resolution
Attachment 2 - EMID Resolution
Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis Exhibit B - Prop 218 Notice for FY 2024-2025
Attachment 3 - Mailing Transaction Receipt

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8 5
5 RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ESTABLISHING WATER RATES FOR FISCAL YEAR 2024-2025

CITY OF FOSTER CITY
WHEREAS, on June 3, 2024, the City Council held a public hearing to consider changes to the Master Fees and Service Charges Schedule establishing water rates for Fiscal Year 2024-2025; and
WHEREAS, the City hired Bartle Wells Associates (“BWA”) to review the City’s water rates, recommend rate adjustments for the next five years to reflect current costs of service, and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water Rate Study dated March 15, 2024, (“Water Rate Study”), which recommends a revised water rate schedule for Fiscal Year 2024- 2025; and
WHEREAS, the Water Rate Study indicates water service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, at its Budget Study Session held on March 25, 2024, the City Council reviewed the Water Rate Study and detailed analyses of the City/District’s utility system operations, revenues, expenses and long-term capital improvement program; and
WHEREAS, the referenced Exhibit A and Exhibit B incorporate the City Council and EMID Board’s policy direction received at the City Council meeting on March 25, 2024; and
WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing water rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and

7.1 Attachment 1 - City Resolution

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8 5
5 WHEREAS, notice of the public hearing to consider proposed adjustments to the water rates, set forth in Exhibit B, was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and WHEREAS, on June 3, 2024, the City Council conducted a public hearing, considered testimony, and, at the conclusion of the hearing, determined that a majority protest did not exist; and
WHEREAS, the City Council determined to use a Two-Tier Hybrid Rate Model for purposes of establishing water rates; and
WHEREAS, the City Council finds and determines that, based on the entire record before the City Council, including but not limited to the Water Rate Study and the Staff Report and attachments thereto:
1) Revenues derived from the proposed water rates will not exceed the funds required to provide water service.
(2) Revenues derived from the proposed water rates will not be used for any purpose other than that for which they were imposed.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
(4) The water rates are imposed for services that are actually used by, or immediately available to, the owner of the property in question. (5) The water rates are not being imposed for general government services.

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

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

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

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

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

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8 5
5 The Water Rate Study establishes that the water rates do not exceed the City’s costs of service and that the rates are proportionately charged to each customer class.

5. The City Council adopts rates noticed in the referenced Exhibit B as the City’s new water service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2024-2025.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 3
rd
day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
________________________________

PRISCILLA SCHAUS, CITY CLERK

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RESOLUTION NO. _________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING WATER RATES FOR FISCAL YEAR 2024-2025

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, on June 3, 2024, the District held a public hearing to consider changes to the Master Fees and Service Charges Schedule establishing water rates for Fiscal Year 2024-2025; and
WHEREAS, the District hired Bartle Wells Associates (“BWA”) to review the water rates, recommend rate adjustments for the next five years to reflect current costs of service, and to create rates that are proportionate to the costs of service for each customer class; and
WHEREAS, BWA submitted a Water Rate Study dated March 15, 2024, (“Water Rate Study”), which recommends a revised water rate schedule for Fiscal Year 2024- 2025; and
WHEREAS, the Water Rate Study indicates water service charges require adjustments to allow for proper maintenance and replacement of existing utility infrastructure, and to provide adequate reserves for emergency; and WHEREAS, at its Budget Study Session held on March 25, 2024, the District Board reviewed the Water Rate Study and detailed analyses of the District’s utility system operations, revenues, expenses and long-term capital improvement program; and
WHEREAS, the referenced Exhibit A and Exhibit B incorporate the City Council and EMID Board’s policy direction received at the District Board meeting on March 25, 2024; and
WHEREAS, pursuant to the provisions of Article 13D, Section 6, of the California Constitution (e.g., Proposition 218), prior to extending, imposing or increasing water rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications, together with an explanation of the rights of property owners to submit written protests to the proposed rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by property owners or tenants representing a majority of the properties subject to the modified rates (“majority protest”); and

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2 1
6 6
WHEREAS, notice of the public hearing to consider proposed adjustments to the water rates, set forth in Exhibit B, was mailed at least 45 days prior to the scheduled public hearing as required by state law (Cal. Cons. Art. XIIID, §6); and WHEREAS, on June 3, 2024, the District Board conducted a public hearing, considered testimony, and, at the conclusion of the hearing, determined that a majority protest did not exist; and
WHEREAS, the District Board determined to use a Two-Tier Hybrid Rate Model for purposes of establishing water rates; and
WHEREAS, the District Board finds and determines that, based on the entire record before the District Board, including but not limited to the Water Rate Study and the Staff Report and attachments thereto:
1) Revenues derived from the proposed water rates will not exceed the funds required to provide water service.
(2) Revenues derived from the proposed water rates will not be used for any purpose other than that for which they were imposed.
(3) The amount of the water rates imposed upon any parcel or person as an incident of property ownership will not exceed the proportional cost of the service attributable to the parcel.
(4) The water rates are imposed for services that are actually used by, or immediately available to, the owner of the property in question. (5) The water rates are not being imposed for general government services.

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

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

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

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

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6 6
The Water Rate Study establishes that the water rates do not exceed the City’s costs of service and that the rates are proportionately charged to each customer class.

5. The District Board adopts rates noticed in the referenced Exhibit B as EMID’s new water service charges to be incorporated into the Master Fees and Service Charges Schedule for Fiscal Year 2024-2025.

PASSED AND ADOPTED as a resolution of the District Board of the Estero Municipal Improvement District at the regular meeting held on the 3 rd day of June, 2024,
by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________

PATRICK SULLIVAN, PRESIDENT
ATTEST:
______________________________________

PRISCILLA SCHAUS, DISTRICT SECRETARY

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

DATE: 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 20 23, 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 w astewater 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 Exhibit A

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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 ow e 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 reserve s, 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 202 5. 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 3 6,500.

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 W
ater 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 3
City of Foster City / Estero Municipal Improvement District W
ater Enterprise O&M Projection
Revised
Budget
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
Employee 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 varies BAWSCA 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 20,914,249

4.5% 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 5
City 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 2034 Assumptions:

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 $41.90 Fixed 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 $8.90 Variable 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 $113.10 Rate 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 Revenues
Water Sales & Service Charges
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 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 15,384,000 Connection Fees [1] 366,255 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Interest Earnings - Operating Reserve [2] 192,000 185,000 174,000 171,000 167,000 160,000 156,000 158,000 162,000 170,000 181,000 Other 0 0 0 0 0 0 0 0 0 0 0
Operating 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 Expens es
Employee 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 4,216,000 Internal 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 1,554,000 Internal Services - ERF 448,097 456,767 468,186 479,891 491,888 504,185 517,000 530,000 543,000 557,000 571,000 Services & Supplies 750,362 817,062 837,489 858,426 879,886 901,884 924,000 947,000 971,000 995,000 1,020,000 SFPUC 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 14,579,000 BAWSCA Bond Repayment 594,012 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 Reallocation 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 1,711,000 Capital Outlay / Vehicles 600,000 0 0 0 0 0 0 0 0 0 0
Operating 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 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Capital 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 Les s O&M Expens es 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 Les s Total Expens es (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 Tes t: Annual Revenues > O&M Expenses
Annual 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 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: Minimum Fund Balance > 25% O&M Expenses Year-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 9,732,784 25% 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 199 179 172 162 146 138 135 134 136 140 146 Pass/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 6
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
F
iscal Year Ending June 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Fixed Meter Charge Increas e 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 Res erves % Above (Below) Res erve Target 199.4% 191.3% 179.7% 162.2% 152.9% 149.8% 149.2% 151.3% 155.9% 162.8% Res erve Target Met? YES YES YES YES YES YES YES YES YES YES Revenue Es timates
Meter 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 Allocation
Fixed 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 Estima te s
Fixed 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 $10,072,000 Variable 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 $15,380,416 Total 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 $704,000 Volumetric Charges $243,471 $32,584 $317,584 $181,584 -$174,416 -$150,416 $1,584 -$416 -$5,416 -$5,416 $7,584 Total -$370,864 -$556,462 -$155,151 -$159,011 -$375,290 -$196,249 $84,584 $224,584 $368,584 $528,584 $711,584 Cost Ana lysis
Fixed 43.1% 41.5% 41.8% 41.2% 40.2% 40.0% 39.9% 39.8% 39.7% 39.6% 39.6% Variable 56.9% 58.5% 58.2% 58.8% 59.8% 60.0% 60.1% 60.2% 60.3% 60.4% 60.4% Meter Charge Calculation
Monthly charge per meter equivalent 27.60$ 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 Calculation
EMID 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 1,706,000 Variable 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 $7.65 Increas e (Decreas e) % 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 Increas e (Decreas e) 4.5% 4.5% 4.5% 4.4% 4.6% 4.1% 4.1% 4.0% 4.0% 4.0% EMID Volumetric Rate Increas e (Decreas e) 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 7
City of Foster City / Estero Municipal Improvement District Proposed Water Rates - Two Tier Hybrid Model
Current
Rates FY2025 FY2026 F Y2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 Monthly Meter Charge
3/4" $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35. 80 $37.25 $38.75 $40.30 $41.90 1" 46.00 48.08 50.25 52.50 54.83 57.33 59. 67 62.08 64.58 67.17 69.83 1-1/2" 110.40 115.40 120.60 126.00 131.60 137.60 143.20 149.00 155.00 161.20 167.60 2" 147.20 153.87 160.80 168.00 175.47 183.47 190.93 198.67 206.67 214.93 223.47 3" 322.00 336.58 351.75 367.50 383.83 401.33 417.67 434.58 452.08 470.17 488.83 4" 579.60 605.85 633.15 661.50 690.90 722.40 751.80 782.25 813.75 846.30 879.90 6" 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 1,955.33 8" 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 Residential
Tier 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 8.90 Tier 2 Over 20 ccf 7.01 7.33 7.60 7.84 8.09 8.36 8.67 8.89 9.12 9.36 9.60 Multi-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 8.90 Tier 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 9.64 Irrigation Customers
Tier 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 8.90 Tier 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 10.05 Commercial and Fire Line Customers
Base 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 Charge
3/4" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 1" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 1-1/2" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 2" 51.61 53.95 56.38 58.91 61.52 64.33 66.95 69.66 72.46 75.36 78.35 3" 112.61 117.71 123.01 128.52 134.23 140.35 146.06 151.98 158.10 164.42 170.95 4" 202.86 212.05 221.60 231.53 241.82 252.84 263.13 273.79 284.81 296.21 307.97 6" 450.71 471.12 492.35 514.40 537.26 561.75 584.61 608.29 632.79 658.10 684.23 8" 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 Us er 6 $65.76 $68.45
$ Increase 2.69
% Increase 4.1%
Average Us er 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%
Exces s ive Us er 50 $365.10 $388.05
$ Increase 22.95
% Increase 6.3%

7.1 Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis

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18 | Page

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

7.1 Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis

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APPENDIX D

19 | Page

7.1 Exhibit A - Bartle Wells Associates Water and Wastewater Rate Study Analysis

269

Notice of Public
Hearing on Proposed
Water Rates
Estero Municipal
Improvement District
Monday, June 3, 2024
6:30 P.M.

SAID HEARING will be held as a hybrid meeting
in-person and by teleconference/video confer-
ence, subject to appropriate regulations. The
meeting address is 620 Foster City Boulevard,
Foster City, CA 94404. Final meeting location(s)
and teleconference/video conference information
will be listed on the published agenda.

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

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

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

Water Conservation Rebates
Get money to help pay for water-saving changes at your
home or business. For information on water conservation rebate programs, visit www.fostercity.org/rebates.

How Do We Compare?
A survey of communities along the Peninsula indicates
that EMID’s rates are among the lowest, about 26% less
than the average monthly residential water bill.

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

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

Exhibit B

7.1 Exhibit B - Prop 218 Notice for FY 2024-2025

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Public Hearing Notice

The Estero Municipal Improvement District (EMID) will hold a public hearing to establish new water rates for FY 2024 - 2025 with an increase of 4.5% for fixed water charges and

3.8% for variable water consumption charges for residential Tier 1 rates. As a water customer or owner of record for a property that receives water service, we are informing you that the District Board will hold a public hearing on June 3, 2024, at 6:30 p.m. to consider proposed changes to its cur- rent rates to take effect on July 1, 2024.

Why are new water rates being proposed?
A significant driver for the proposed rate increases is to smooth District rate adjustments due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The SFPUC, the sole water supplier for the District, projects that its wholesale rate will increase from $5.21 per hundred cubic feet (ccf) in FY 2023 -2024 to $5.55 per ccf in FY 2024 -2025. These increases are includ- ed in the projected rates.

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

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

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

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

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

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

Irrigation Customers
Irrigation customers with separate irrigation water meters are provided an individually-prepared water budget based on the square footage of landscaping being watered. Usage
within the water budget allotment will be charged at
$6.60/ccf. Usage over the water budget allotment will be charged $7.80/ccf for every unit of water over the allotment.

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

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

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

Tier (#ccf) Current Proposed FY 2024-2025
Tier 1—0 to 20 $6.36 $6.60
Tier 2—Over 20 $7.01 $7.33
Tier (#ccf) Current Proposed FY 2024-2025
Tier 1—0 to 10 $6.36 $6.60
Tier 2—Over 10 7.09 7.36
Water Budget Consumption Current Proposed FY 2024-2025
<= 100% $6.36 $6.60
> 100% $7.22 $7.80
Consumption Current Proposed FY 2024-2025
All Usage $6.47 $6.72
Monthly Charge Current
Proposed
FY 2024-2025
Domestic and/or Irrigation Customers
5/8” and 3/4” $27.60 $28.85
1” $46.00 $48.08

1.5” $110.40 $115.40
2” $147.20 $153.87
3” $322.00 $336.58
4” $579.60 $605.85
6” $1,288.00 $1,346.33
8” or greater $2,208.00 $2,308.00
Private Fire Service Protection Meter
5/8” and 3/4” $38.64 $40.39
1” $38.64 $40.39

1.5” $38.64 $40.39
2” $51.61 $53.95
3” $112.61 $117.71
4” $202.86 $212.05
6” $450.71 $471.12
8” or greater $772.80 $807.80

7.1 Exhibit B - Prop 218 Notice for FY 2024-2025

271

7.1 Attachment 3 - Mailing Transaction Receipt

272

6 4
8 DATE: June 3, 2024

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
FROM: Stefan Chatwin, City/District Manager
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager
DEPARTMENT: City Manager, Finance
SUBJECT: PUBLIC HEARING FOR FY 2024-25 PRELIMINARY BUDGET

RECOMMENDATION
It is recommended that the City Council/EMID Board (“City Council”) receive public comments regarding the FY 2024-25 Preliminary Budget and provide direction to finalize the budget. Such direction provided by the City Council and recorded via minute order will then be incorporated in the FY 2024-25 Final Budget for adoption on June 17, 2024. The Five-Year Financial Plan will also be updated accordingly.

EXECUTIVE SUMMARY
As part of the FY 2024-25 annual budget development process, the City Council held budget study sessions on February 26 and March 25 to review various sections of the preliminary budget, including the CIP Funds, Enterprise Funds, and Internal Service Funds. On May 20, 2024, the City Council reviewed the entire preliminary budget, including all the Governmental Funds.

The public hearing this evening allows the public an opportunity to comment on the preliminary budget and for the City Council to consider their input before providing direction with respect to the adoption of the final budget for FY 2024-25 scheduled on June 17, 2024.

BACKGROUND AND ANALYSIS

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6 4
8 On May 20, City staff presented the FY 2024-25 preliminary budget and 5-year financial plan for all Funds, including the General Fund (001 to 003). The budget indicated a $5.44 million General Fund structural deficit for FY 2024-25 as well as structural deficits for the entirety of the 5-year financial plan. The City Council gave direction to use General Fund reserves to address the FY 2024-25 budget shortfall and directed the City Manager to develop strategies to address the future deficits. The City Manager indicated such strategies may include additional or updated revenue opportunities, cost recovery measures, and operational efficiencies.

Based on directions provided by the City Council at the May 20 meeting as well as new information and developments over the past three weeks, City staff has summarized budget revisions for FY 2024-25 that includes $164,580 expenditures increase across all funds, including a $142,028 expenditure increase for the General Fund (Attachment 1). This increase is due to the cost-of-living adjustment (COLA) to the salaries of the Police Officers Association (POA) and Management Employees groups. The agreements with both these groups state that the base salaries will be adjusted based on the San Francisco Bay Area CPI-U April 2023 to April 2024 (Urban) with a minimum of three percent (3.0%) and a maximum of five percent (5.0%). The adjustment was made based on the recently issued San Francisco Bay Area CPI-U of 3.8% for April 2024. Since the negotiations with American Federation of State, County and Municipal Employees (AFSCME) group are still in the process, there are no adjustments made to the salaries of this group. The fiscal impact of the above noted increase in expenditures is included in the MOU is included in the proforma General Fund (001 to 003) FY 2024- 25 budget, which now shows a $5.58 million deficit as well as larger annual deficits over the 5-year financial plan (Attachment 2). Finally, any additional direction received at tonight’s meeting will be incorporated into the final budget that is scheduled for adoption on June 17, 2024.

Staff would also like to note that at the January 16, 2024 regular meeting, the City Council provided direction to address the budget shortfall for the Recreation Center.

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. Funding sources for the approx. $9.55 million budget shortfall are included in the budget (Attachment 3) and in the Table below.

It would be appropriate for the City Council to receive public testimony relative to the preliminary FY 2024-25 Budget. Upon hearing the public testimony, City staff

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6 4
8 recommends that the City Council provide direction towards the preparation of the FY 2024-25 final budget.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
Based on City Council direction from tonight’s public hearing, City staff will incorporate adjustments in the FY 2024-25 Final Budget for adoption on June 17, 2024. The May 20, 2024 preliminary budget can be found at:
https://www.fostercity.org/finance/page/annualbudget

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

Attachment 1 – Revisions to the FY 2024-25 Preliminary Budget presented on May 20, 2024
Attachment 2 – Proforma revised General Fund (Fund 001 to 003) FY 2024-25 Preliminary Budget and 5-Year Financial Plan
Attachment 3 – Preliminary Budget (pages 320-321)

7.2 7.2 Staff Report

275

Revisions to the FY 2024-25 Preliminary Budget presented on May 20, 2024 Fund No.

Fund Name
Revenues
Increase
(Decrease)
Expenditures
Increase
(Decrease) Comments
General Fund (001 to 003)
142,028$ COLA increase 1
General Fund Projected Deficit, as of 5/20/2024 5,441,611 Revised General Fund Deficit 5,583,639$
Special Revenue Funds (101 to 145) 1,721$ COLA increase 1 401 Water Enterprise Fund 5,520$ COLA increase 1 451 Wastewater Collection System Enterprise Fund 5,856$ COLA increase 1 Special Revenue Funds (501 to 519) 9,455$ COLA increase 1 Legend:
1 New information after 5/20/2024 budget study session.

7.2 Attachment 1 - Revisions to the FY 2024-25 Preliminary Budget presented on May 20, 2024

276

Five Year Forecast as of May 20 Budget Study Session
Projected
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Total Revenues 61,468,046$ 61,937,388 $ 61,236,865 $ 61,577,015 $ 62,366,864 $ 63,915,360 $ Expenditures 59,402,377 61,628,999 61,960,288 64,204,190 65,332,549 67,830,491 Net Revenue over (under) expenditures before transfers 2,065,669 308,389 (723,423) (2,627,175) (2,965,685) (3,915,131) Net Transfers In (Out) (6,000,000) (5,750,000) (5,750,000) (5,750,000) (5,750,000) (5,750,000) (3,934,331) (5,441,611) (6,473,423) (8,377,175) (8,715,685) (9,665,131) Opening Fund Balance 58,199,969 54,265,638 48,824,027 42,350,604 33,973,429 25,257,744 Ending Fund Balance (Reserves) 54,265,638 $ 48,824,027 $ 42,350,604 $ 33,973,429 $ 25,257,744 $ 15,592,613 $ Reserve Balance as % of Next Year's Operating Expenditures 88.1% 78.8% 66.0% 52.0% 37.2% 22.4% Five Year Forecast with Added Expenditures
Projected
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Total Revenues 61,468,046$ 61,937,388 $ 61,236,865 $ 61,577,015 $ 62,366,864 $ 63,915,360 $ Expenditures 59,402,377 61,628,999 61,960,288 64,204,190 65,332,549 67,830,491 Additional expenditures, due to COLA - 142,028 144,511 149,602 154,571 158,153 Revised Expenditures 59,402,377 61,771,027 62,104,799 64,353,792 65,487,120 67,988,644 Net Revenue over (under) expenditures before transfers 2,065,669 166,361 (867,934) (2,776,777) (3,120,256) (4,073,284) Net Transfers In (Out) (6,000,000) (5,750,000) (5,750,000) (5,750,000) (5,750,000) (5,750,000) (3,934,331) (5,583,639) (6,617,934) (8,526,777) (8,870,256) (9,823,284) Opening Fund Balance 58,199,969 54,265,638 48,681,999 42,064,065 33,537,288 24,667,032 Ending Fund Balance (Reserves) 54,265,638$ 48,681,999 $ 42,064,065 $ 33,537,288 $ 24,667,032 $ 14,843,748 $ Reserve Balance as % of Next Year's Operating Expenditures 87.8% 78.4% 65.4% 51.2% 36.3% 21.3% Net Surplus (Deficit) in Fund Balance, as of 5/20/2024 Budget Study Session
City of Foster City, California
General Fund (Funds 001 to 003)
Preliminary Five Year Financial Plan FY 2024-25 to FY 2028-29, as of 6/3/2024 |--------------------------Five Year Financial Plan-----------------------------| Net Surplus (Deficit) in Fund Balance
City of Foster City, California
General Fund (Funds 001 to 003)
Preliminary Five Year Financial Plan FY 2024-25 to FY 2028-29, as of 5/20/2024 |--------------------------Five Year Financial Plan-----------------------------|

7.2 Attachment 2 - Proforma revised General Fund (Fund 001 to 003) FY 2024-25 Preliminary Budget and 5-Year Financial Plan

277

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 $10,568,750, the difference between the Project budget appropriation of $55,374,250 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.

City of Foster City's FY 2024-25 Preliminary Budget

Page 320 ends

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2. Transfer of $1,861,400 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 $560,000 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 $560,300 $467,000 $0 $0 $0 $1,027,300
Fund 301 - CIP - City $5,926,050 $0 $0 $0 $0 $5,926,050 Fund 505 - Building
Maintenance Fund $1,861,400 $0 $0 $0 $0 $1,861,400
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 City of Foster City's FY 2024-25 Preliminary Budget

Page 321 ends

7.2 Attachment 3 - Preliminary Budget (pages 320-321)

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DATE: June 03, 2024
TO: Mayor and Members of the City Council

VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Derek Schweigart, Parks and Recreation Director
DEPARTMENT: Community Development/Parks and Recreation
SUBJECT: ORDINANCE ESTABLISHING NEW FEES FOR SIDEWALK

VENDING PERMIT AND FINES, NON-RESIDENT PARK

RENTAL FEES AND PARK CANCELLATION FEES

RECOMMENDATION
It is recommended that the City Council introduce by title only, and by motion waive further reading of an uncodified Ordinance establishing new fees for Sidewalk Vending Permit and fines, Non-Resident Park Rental Fees and revising the existing Park Cancellation Fees and finding the ordinance exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15061(b)(3).

EXECUTIVE SUMMARY
The Community Development Department recommends establishing new fees for Sidewalk Vending Permit and fines, and the Parks and Recreation Department recommends establishing non-resident park rental fees and revising the existing park cancellation fee.

BACKGROUND/ANALYSIS
Community Development Department: Sidewalk Vending Permit Fee and Fines Senate Bill (SB) 946 authorizes cities to adopt requirements regulating the time, place, and manner of sidewalk vending if the requirements are directly related to objective health, safety, or welfare concerns. On May 6, 2024, the City Council adopted an Ordinance adding

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a New Chapter 12.44, “Sidewalk Vending Program,” to establish locations and regulations applicable to sidewalk vendors. The Sidewalk Vending Program, once effective, will require sidewalk vendors (both stationary and roaming vendors) to obtain a Sidewalk Vending Permit (“Permit”) to ensure that sidewalk vendors operating within the City are complying with certain objective regulations that are directly related to public health, safety, and welfare.

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.

There will be some staff time involved with the processing, issuance and enforcement of these permits.

Following are examples of sidewalk vending permit application fees charged by a few cities:
•City of Burlingame: $100 ( link to master fee schedule, page 27) •City of San Bruno: $505 includes rate plus applicable fingerprinting and Department of Justice fees (link to master fee schedule, page 27) •City of Redwood City: $186 permit fee ( link)
•City of Hayward: $0 ( link)
Staff is anticipating up to 30 minutes of application intake by personnel from the Community Development Department (Permit Technician I/II and/or Code Enforcement Officer) and 15 minutes of processing time by personnel (Admin Assistant) from the Finance Department.

As part of the processing and administering services, City staff will need to review the application and submitted materials and issue the permit or issue a response denying the permit. Staff recommend setting the sidewalk vending permit fee at $100, which equates to 45 minutes of staff time at the adopted rate of $146-$153/hour and $133/hour.

The ‘Sidewalk Vending Program’ will be effective 30 days from the second reading, which occurred on May 06, 2024. Including the fees for the Permit will allow for the ordinance's successful implementation. Thus, staff is recommending that the Sidewalk Vending Permit Fee of $100 be adopted.

In addition, the adopted Ordinance includes a section on enforcement that lists fines for violations of Chapter 12.44 of the Municipal Code consistent with the provisions in Section

12.44.100 of the Ordinance adopted on May 6 th, including vending without a valid vending permit and administrative fines as follows:
(i) An administrative fine of two hundred fifty and no/100ths ($250.00) dollars for a first violation.
(ii) An administrative fine of five hundred and no/100ths ($500.00) dollars for a second violation within one year of the first violation.
(iii) An administrative fine of one thousand and no/100ths ($1,000.00) dollars for a third violation and each subsequent violation, within one year of the first violation. Upon proof of a valid permit issued by the City before such fines are due, the city would

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reduce the amount of the fines to one hundred and no/100ths ($100.00) dollars for the first violation, two hundred and no/100ths ($200.00) dollars for the second violation, and five hundred and no/100ths ($500.00) dollars for each violation thereafter.

The section 12.44.100 also includes fines for all violations of the chapter other than vending without a valid vending permit as outlined above, including:
(i) An administrative fine of one hundred and no/100ths ($100.00) dollars for a first violation.
(ii) An administrative fine of two hundred and no/100ths ($200.00) dollars for a second violation within one year of the first violation.
(iii) An administrative fine of five hundred and no/100ths ($500.00) dollars for a third violation within one year of the first violation.
(iv) An administrative fine of five hundred and no/100ths ($500.00) dollars for a fourth and each subsequent violation, and revocation of the vending permit. Revocation proceedings will be conducted in accordance with the rules and regulations established by the city.

It shall be noted that even though the City Council adopted an Ordinance for the Sidewalk Vending Program, including a list of fines for violations, these fines were not incorporated into the Master Fee Schedule. Thus, staff is recommending that the above listed fines be included in the Master Fee schedule.

Parks and Recreation Fees: Non-Resident Park Rentals and Park Cancellation Fees At the March 25, 2024, Budget Study Session, the City Council reviewed and provided direction for City staff to update the Master Fees and Service Charges Schedule ("Schedule"). The updated schedule included fees and charges adjustments from Parks and Recreation. The proposed fees and service charges were passed and adopted per Resolution No. 2024-32. The City Council also provided direction to Parks and Recreation staff to explore both non-resident rates for park rentals and percentage-based park cancellation fees.

Non-Resident Park Rental Fees
Per City Council direction, staff researched non-resident park rental rates and park cancellation fees for neighboring cities including Belmont, Burlingame, Menlo Park, Redwood City, San Bruno, San Carlos, and South San Francisco (Attachment 2). Non- resident Park reservation policies, rates and cancellation fees vary widely among neighboring cities. It was noted however, that every city except Foster City allows non- resident park reservations. Under Foster City’s existing rental policy, non-residents can only rent Leo J. Ryan Park Hilltop picnic area and it must be 10 months in advance.

Residents are allowed to book a year in advance. Staff recommends allowing non- residents to rent currently rented City parks up to 90 days in advance at 25% above the resident rate. If approved, staff will align the policy to be 90 days in advance for non- residents for all reservable parks. Residents will continue to receive priority in that they will

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be allowed to rent parks up to a year in advance.

Park Cancellation Fees
Park cancellation fees vary widely among neighboring cities (Attachment 2). For example, the City of San Mateo does not charge a cancellation fee, while in the City of Belmont, park reservation fees are non-refundable. The cities of San Carlos, Burlingame, and San Bruno allow cancellations at least 14 days in advance of the reservation date minus fees.

Under Foster City’s policy, cancellations made more than 7 days prior to the event date receive a full refund minus a $10.40 administrative fee. Renters are charged a $26 cancellation fee for park rentals cancelled less than seven (7) calendar days in advance of the reservation.

Staff recommends renters receive full refund minus administrative fee ($11 for FY 24/25) if cancellation occurs more than 14 business days in advance. Cancellation requests received less than 13 business days in advance will result in a 50% refund minus administrative fee, and requests received less than 2 business days in advance will result in no refund. This new cancellation fee will help deter last-minute park cancellations, ensuring that staff can rent the park to other users.

The City of Foster City has the authority to impose fees, charges, and rates to offset the costs for municipal services and regulatory programs under its police powers under California Constitution Article XI section 7. Cities can adopt fees by resolution or ordinance.

The proposed fees are being proposed as an ordinance, in an abundance of caution, to address the requirements in the Taxpayer Protection and Government Accountability Act (“Act”), which will require all fees and charges, adopted after January 1, 2022, to be adopted by ordinance if the Act is passed by the voters of the State.

The proposed Ordinance would not be codified in any Chapter of the City’s Municipal Code and provides that it can be updated or revised by resolution, if necessary. Once effective, the Ordinance provides that the fees will automatically be incorporated into the City’s Fiscal Year (FY) 2024-2025 Master Fees and Service Charges Schedule.

CEQA
The proposed amendments to the fee schedule are exempt pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of having a significant effect on the environment.

FISCAL IMPACT
The revenue received for the Sidewalk Vending Permit Fee would offset the costs of administering the program and costs relating to enforcement of the Sidewalk Vending Program during the city organized special events on weekends and holidays.

It is not known at this time what additional revenue will be gained by allowing non-resident reservations for parks. For comparison however, if 5% of park rentals were non-resident

7.3 7.3 Staff Report

283

reservations at 25% over the resident rate, the additional revenue would be about $2,218 (using FY 22/23 park rental revenue of $44,362). Staff anticipates additional revenue gained from updating the park cancellation fees would be negligible (less than $200 fiscal year).

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

Attachment 1 – Ordinance
Attachment 2 – Exhibit A

7.3 7.3 Staff Report

284

2 1
9 2
ORDINANCE NO. __________

AN UNCODIFIED ORDINANCE OF THE CITY OF FOSTER CITY ESTABLISHING NEW

FEES FOR SIDEWALK VENDING PERMIT AND FINES, NON-RESIDENT PARK

RENTAL FEES, AND REVISING THE EXISTING PARK CANCELLATION FEE AND

FINDING THE ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINE SECTION 15061(B)(3)

CITY OF FOSTER CITY
WHEREAS, the City of Foster City has the authority to impose fees, charges, and rates to offset the costs for municipal services and regulatory programs under its police powers under California Constitution Article XI section 7; and WHEREAS, it is the general policy of the City to charge for the full costs of services provided by City Staff when such services benefit individual users rather than members of the community as a whole; and
WHEREAS, to better achieve the City’s cost recovery goals, the City Council deems it advisable and in the best interests of the City to adopt and update certain fees, included in the City’s Master Fees and Service Charges; and WHEREAS, the Community Development Department recommends establishing new fees for Sidewalk Vending Permit for administration and enforcement of the Sidewalk Vending Program; and
WHEREAS, the Parks and Recreation Department recommends establishing non- resident park rental fees to allow more use by non-residents and revising the existing park cancellation fee; and
WHEREAS, the Fees comply with Article XIII-C of the California Constitution because they are either (1) charges imposed for a specific government service or product that are not imposed on those not receiving the service or product and do not exceed the City’s reasonable costs of providing the service or product; or (2) charges imposed for the reasonable regulatory costs to the City for issuing licenses and permits, performing investigations, inspections, and audits, and administrative enforcement and adjudication thereof; and
WHEREAS, if enacted, the Taxpayer Protection and Government Accountability Act (“Act”) will require all fees and charges, adopted after January 1, 2022, to be adopted by the City Council by ordinance; and
WHEREAS, the City Council may adopt any fee or charge by ordinance if it is permitted to adopt the fee or charge by resolution; and

7.3 Attachment 1 - Ordinance

285

2 1
9 2
WHEREAS, the City Council desires to comply with the Act to ensure that the proposed fees will remain valid in the event the Act is adopted; and WHEREAS, the proposed fees are “exempt charges,” within the meaning of the Act because they are (1) reasonable charges for specific local government services or products provided directly to the payor that are not provided to those not charged, and they do not exceed the actual costs to the local government of providing the service or product; or (2) charges for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing the adopted Fire Code, or adjudication thereof; and
WHEREAS, on May 22, 2024, a public hearing notice was duly published and posted in three public places pursuant to California Code Section 65090 for the City Council public hearing on June 03, 2024.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES ORDAIN AS FOLLOWS:

Section 1. The City Council does hereby find and determine based upon the aforementioned Record as follows:

1. The foregoing Recitals are true and correct and are incorporated herein by this reference.

2. The Ordinance is exempt pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of having a significant effect on the environment as these are administrative matters.

Section 2. Amendment. The new fees for Sidewalk Vending Permit, non-resident park rentals and revised park cancellation fee as set forth in the attached Exhibit A, , which is attached hereto and incorporated herein by reference (hereinafter “Fees”), are hereby approved and adopted as the applicable fees that the City of Foster City.

Section 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 4. Taking Effect. This Ordinance shall take effect and be in force thirty (30) days from and after its adoption. Once effective, the Fees shall be incorporated into the City’s Fiscal Year (FY) 2024-2025 Master Fees and Service Charges Schedule.

Section 5. Posting. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council.

7.3 Attachment 1 - Ordinance

286

2 1
9 2
Section 6. Conflicts. If there are conflicts between the Fees adopted in this Ordinance and the fees adopted by any prior resolution or fee schedule, the Fees adopted pursuant to this Ordinance shall control. This Ordinance does not supersede any previous resolution or ordinance setting fees that are not included in Exhibit A to this Ordinance.

Section 7. Revisions to Fees. The Fees set forth in Exhibit A may be revised, amended or updated from time to time by resolution or ordinance of the City Council.

This Ordinance was introduced and read on the 3rd day of June, 2024, and passed and adopted on the ____ day of ____, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

7.3 Attachment 1 - Ordinance

287

1 2
1 9
3 Exhibit A

1. Sidewalk Vending Permit
Ref. No. Revenue Title Fee
CDP-24 Sidewalk Vending Permit Fee (one year permit) $100 Sidewalk Vending Administrative Fines
For vending without a valid vending permit the following fines shall be applicable:
(i) first violation. $250.00
(ii) second violation within one year of the first
violation.
$500.00
(iii) third violation and each subsequent violation,
within one year of the first violation.
$1,000.00
CDP-25
Upon proof of a valid permit issued by the City before
such fines are due, the city would reduce the amount
of the fines to one hundred and no/100ths ($100.00)
dollars for the first violation, two hundred and
no/100ths ($200.00) dollars for the second violation,
and five hundred and no/100ths ($500.00) dollars for
each violation thereafter.

For all violations of Foster City Municipal Code Chapter

12.44 other than vending without a valid vending permit as outlined above:

(i) first violation. $100.00
(ii) second violation within one year of the first
violation.
$200.00
(iii) third violation within one year of the first violation $500.00 (iii)An administrative fine of five hundred and
no/100ths ($500.00) dollars for a fourth and each
subsequent violation, and revocation of the vending
permit. Revocation proceedings will be conducted in
accordance with the rules and regulations established
by the city.
$500.00
CDP-26
All fines shall be assessed and imposed in accordance
with Section 12.44.100 of the Foster City Municipal
Code

7.3 Attachment 2 - Exhibit A

288

2 2
1 9
3 2. Non-Resident Park Rental Fees
Non-Residents shall rent currently rented City parks up to 90 days in advance at 25% above the resident rate.

3. Park Cancellation Fees
All Park renters shall receive a full refund of Park Rental Fees minus the then applicable Administration Fee in effect if cancellation occurs more than 14 business days in advance.

Cancelling between 13 to 3 business days in advance will result in a 50% refund of the Park Rental Fees minus the then applicable Administration Fee in effect. If a park rental cancellation occurs less than 2 business days prior to reservation date, the Park Cancellation Fee shall be the entire cost of the park rental and no refund shall be given.

Foster City Park Rental Rates
FY 24/25Park
Resident Rate
FY 24/25 Proposed
Non-Resident Rate
$82 Gull, Marlin, Erckenbrack
Capacity 50 people Rate + 25%
25‐50 people $137
51‐100 people $191
Boothbay
101‐150 people $246
Rate + 25%
$82 Leo Ryan Patio Area
Capacity 50 people Rate + 25%
Leo Ryan Amphitheater 1‐100 people = $164 flat fee
Four (4) hour maximum
rental time
101‐150 = $273 flat fee Rate + 25%
$44 Leo Ryan Gazebo Two (2)
hour maximum rental time Capacity 25 people Rate + 25%
$44 Leo Ryan Grass West
Capacity 25 people Rate + 25%
$44 Bridgeview and Shorebird
Park Capacity 30 people Rate + 25%
$71 Catamaran, Farragut,
Edgewater Park Capacity 30 people Rate + 25%
Food truck fee $82 per park per truck $82 per park per truck •Parks are available to rent to Foster City residents one year before the event date, and to non-residents 90 days before the event date.

7.3 Attachment 2 - Exhibit A

289

3 2
1 9
3 Current (FY 23/24) Parks cancellation fee
•Cancellations made more than 7 days prior to the event date will receive a full refund minus a $10.40 processing fee. A $26 cancellation fee is charged for park rentals cancelled less than 7 days in advance.

Proposed Parks cancellation fee
•Renters receive a full refund minus admin fee ($11) if cancellation occurs more than 14 business days in advance. Canceling 13-3 business days in advance will result in a 50% refund and the loss of admin fee. Less than 2 business days cancellation will result in no refund.
[END OF EXHIBIT A]

7.3 Attachment 2 - Exhibit A

290

6 1
8 6
1 8
DATE: June 3, 2024

TO: Mayor and Members of the City Council

VIA: Stefan Chatwin, City Manager

FROM: Waqas Hassan, Assistant Finance Director

SUBJECT: 3RD QUARTER FY 2023-24 FINANCIAL UPDATE

RECOMMENDATION
It is recommended that the City Council, by Minute Order, receive and accept the report on the 3rd Quarter FY 2023-24 Financial Update.

EXECUTIVE SUMMARY
City staff has prepared the attached 3rd Quarter FY 2023-24 Financial Update report (Attachment 1). General Fund revenues (Funds 001 to 003) for the nine-month period were $40.02 million. Revenue and expenditures projections for the full year are $61.47 million and $59.40 million respectively. After adding Transfers in of $21,948 from the Foster City Foundation Fund and Transfers Out of $6.0 million to the City CIP Fund and $41,983 to the Low-and-Moderate Income Housing Fund, the estimated FY 2023-24 deficit is $3.94 million. Property Tax revenues, including ERAF refunds, are projected to reach $37.93 million. FY 2023-24 property tax in lieu of vehicle license fees (VLF) is anticipated to be $3.78 million with five non-basic aid school districts versus six in the prior year, which in turn means less available property tax revenues to fund the FY 2023-24 VLF. San Mateo County continues to work with the State for a permanent solution for VLF shortfalls. Staff would like to note that the State did not include San Mateo County's FY 2022-23 shortfall of $70.05 million (Foster City's portion is $1,398,472) in its proposed FY 2024-25 state budget.

Transient Occupancy Tax (TOT) gains for the nine-month period through March 31, 2024 were encouraging. As a result, full-year projections are now $4.15 million vs. budgeted estimates of $3.56 million. Although there has been talk of interest rate reductions over the past few months, the Federal Reserve has maintained its Fed Funds rate of 5.25% to 5.50% since July 2023. Based on the longevity of these high rates, the City’s investment income projections have been lifted across multiple Funds, including a $1.1 million increase for the General Fund.

8.1 8.1 Staff Report

291

6 1
8 6
1 8
At the 9-month mark, General Fund (Funds 001 to 003) operating expenditures were

66.2% of its amended budget or $39.34 million and included 9 months of funding to San Mateo Consolidated Fire Department for the City’s shared costs for fire protection and prevention services. City staff expects full year General Fund operating expenditures to be below the City’s operating budget of $59.40 million (before Transfers Out) and once full year staff vacancy savings are tabulated at year end, additional budget savings are expected. Expenditures for the City’s other Governmental Funds, Internal Service Funds, and the District’s Water and Wastewater Funds are performing generally as expected.

BACKGROUND/ANALYSIS
The City Council and City staff have committed to providing quarterly financial updates at City Council meetings to review quarterly financial performance and identify general economic trends and specific issues that may affect, positively and negatively, the City’s financial condition.

The report is intended to provide high-level financial information for the City Council, City Departments, and the community as a whole. Supplemental revenue and expenditure analyses are also provided for those readers desiring more detailed financial information.

CEQA
Not applicable.

FISCAL IMPACT
There is no fiscal impact associated with this report.

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

Attachment 1 - Foster City Financial Update FY 2023-24 Q3 (for the nine months ended March 31, 2024)
Attachment 2 – Third Quarter Projections for the Fiscal Year Ended June 30, 2024 Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues (for the nine months ended March 31, 2024)
Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures (for the nine months ended March 31, 2024

8.1 8.1 Staff Report

292

Live, Work & Play
in Foster City
City of Foster City
Financial Services Dept.

Positive revenue growth trends for the fiscal year is expected to help alleviate the projected General Fund deficit from $6.32 million to $3.94 million
The FY 23/24 adopted General Fund budget (Funds
001 to 003) included a projected deficit of $6.32
million, inclusive of a $6.0 million transfer out to
the City’s CIP Fund. Improvements in several rev-
enue categories during the three quarters of the
fiscal year as well as a favorable outlook is prompt-
ing a projected reduction of our projected deficit
to $3.94 million.

Total General Fund Revenues (Funds 001 to 003)
for the 9 month period were $40.02 million. Prop-
erty tax revenues including ERAF refunds were
$24.32 million compared to $22.82 million in the
prior year. Having received our 1st installment of
ERAF, the full year projection has been revised to
include the second insta llment payment expected
later this year. Property tax in Lieu of Vehicle Li-
cense Fes declined from $4.45 million to $2.24 mil-
lion as the City received a $2.01 million VLF short-
fall payment from the State via the County in FY
22/23 verses a VLF shortfall payment of $667,557
in the current fiscal year . In addition, since there
are only five non-basic aid school districts this fiscal year compared to six in the prior fiscal year, the
County has less available pr operty tax revenues to
fund this year’s VLF. Hence, this year’s VLF short-
fall is estimated to be $114.39 million (FC’s portion
is $2,285,850) compared to last year’s shortfall of
$70.05 million (FC's portion is $1,398,472). As a
result, staff is reducing this year’s VLF revenue pro-
jection by $652,000 from $4.39 million to $3.78
million. Sales tax experi enced decline by $292,000
to $2.28 million compared to the prior year. Tran-
sient Occupancy Taxes continued its recovery, im-
proving from $2.06 million to $2.70 million. Recre-
ation fees are $1.54 million compared to $1.14 mil-
lion in the prior year, showing an increase of ap-
proximately $400,000. Investment income jumped
$948,000 to $1.83 million as the higher Fed Funds
rate have remained unchanged at 5.25% to 5.50%
since July 2023. Intergovernmental revenues de-
clined by $4.13 million as one-time ARPA
(American Rescue Plan Act) funding ended last
fiscal year.

General Fund expenditures (Funds 001 to 003) to-
taled $39.34 million or 66.2% of the annual budget
compared to last fiscal year’s mark of $39.29 million
with unfilled positions still an ongoing challenge. The wage COLA for FY 2023-24 was 4.2% for the both
the POA bargaining unit and the Management unit.

The AFSCME unit finalized their labor agreement in
October 2023 with a 5% COLA adjustment retroac-
tive July 1, 2023. The City made 3 quarterly pay-
ments to San Mateo Consolidated Fire for its 20%
shared costs for fire protection and prevention ser-
vices.

Expenditures for many of the City’s special revenue
funds, including Measure A, Measure M, SB1, and
Measure W funds are non-linear and commonly pro-
gram and/or project driven. Water and Wastewater
Enterprise operating revenues were 14.7% and 12.2%
ahead of last year’s pace due to a combination of new
rate increases that took effect July 1 and higher in-
vestment income. Water operating expenditure
were 9.2% higher due to higher wholesale water
rates and a general increase in operating and labor
costs. Wastewater expenditures were 2.3% lower.

Notwithstanding, these enterprise fund expenditures
were well within the budget for the nine month peri-
od and are expected to be within full year’s targets
by year-end.

As stated earlier, the City continues to experience
difficulties in filling vacant positions, including human resources manager, and po lice officers. The project-
ed multi-year structural deficits, cost impacts from
two consecutive years of CalPERS underperformance
of investment returns (a ne gative 6.1% return in FY
21/22 and a 5.8% return in FY 22/23 compared to
their 6.8% annual target), annual VLF shortfalls and
the State’s posturing in possibly not backfilling these vital revenues are some of the major challenges as
City staff prepares its FY 24/25 budget and 5-year
financial plan.

Foster City Financial
Update FY 23/24 Q3

8.1 Attachment 1 - Foster City Financial Update FY 2023-24 Q3 (for the nine months ended March 31, 2024)

293

CITY OF FOSTER CITY / EMID
Summary of Resources and Requirements by Funds
For the Fiscal Year Ended June 30, 2024
THIRD QUARTER PROJECTIONS THROUGH JUNE 30, 2024
Less:

Total Fund
Balance
July 1, 2023
Estimated
Operating
Net Increase
(Decrease) in
Reserves
Total Fund
Balance
June 30, 2024
Nonspendable,
Restricted,
Committed
Available/
Unassigned
June 30, 2024
Estimated
Revenues
Capital
Expenditures
Total
RequirementsFund Transfers In Transfers Out Total Available Expenditures General Funds
001
002
003
005
006
007
008
009
010
011
012
General Fund Operating
General Fund-District
$
$
$
$
$
$
$
$
$
$
$
$
56,515,374
1,845,803
36,980
$
$
$
$
$
$
$
$
$
$
$
$
19,482,810
39,672,400
2,312,836
45,700
$
$
$
$
$
$
$
$
$
$
$
$
41,144,142 $
$
$
$
$
$
$
$
$
$
$
$
6,949,939 $
$
$
$
$
$
$
$
$
$
$
$
110,192,387
369,609
3,257,772
1,226,093
43,433
$
$
$
$
$
$
$
$
$
$
$
$
55,776,096
369,609
3,257,772
359,667
600
$ -
-
-
-
-
-
-
-
-
-
-
-
$ 55,776,096
369,609
3,257,772
359,667
600
$
$
$
$
$
$
$
$
$
$
$
$
(2,099,083)
(1,845,803)
(36,980)
(313,967)
1,100
$
$
$
$
$
$
$
$
$
$
$
$
54,416,291
-
$
$
$
$
$
$
$
$
$
$
$
$
150,653 $ 54,265,638
-- 41,148,594 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
General Fund-Special Recreation
Community Benefits Program Fund
DARE
907,956 - - - -
1,180,393
41,733
- - 866,426
42,833
46,384
64,159
22,856
98,714
2,583,074
147,959
58,288,696
- 866,426
42,833
46,384
64,159
22,856
98,714
2,583,074
147,959
58,138,043
1,700 - - -
Solar Incentive Grant Program
Employee Rental Assistance Program
Asset Seizure
68,884 2,500 - - 71,384 25,000
-
25,000
-
(22,500)
2,300
-
61,859 2,300 - - 64,159 -
24,853 2,100 - - 26,953 4,097 4,097 (1,997) -
Discretionary Pension Liability Stabilization Fund
Facilities Replacement Fund
Sustainable Foster City
94,514 4,200 -
-
- 98,714 - - 4,200 -
2,474,874
207,804
62,553,071
108,200
11,100
-
-
2,583,074
268,904
118,202,482
- - 108,200
(59,845)
(4,264,375)
-
-50,000
42,102,098
120,945
59,913,786
120,945
59,913,786Subtotal General Funds 61,645,846 48,098,533 150,653 Special Revenue Funds
101
102
103
104
105
108
114
116
119
122
124
125
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
Traffic Safety $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
4,686,950
517,184
2,902,945
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
1,078,300
938,002
126,700
121,700
155,000
533,377
38,900
877,898
185,500
37,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
67,497
5,765,250
1,455,186
3,029,645
121,700
155,000
992,712
430,164
1,741,715
2,668,838
4,679,671
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
(3,175,288)
2,453
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
1,511,662
519,637
3,029,645
21,700
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
1,511,662
519,637
3,029,645
21,700
Measure A - - 4,253,588
Gas Tax (2103, 2105-2107.5)
Park In-Lieu Fees
- - 16,483
-
919,066
- - - 126,700
21,700
55,000
(249,673)
(119,298)
422,841
(50,597)
(198,000)
-
Measure M - - - 100,000 100,000
100,000
783,050
136,250
455,057
278,080
235,000
-
SLESF/COPS Grant - - - 100,000
783,050
136,250
-
- 55,000 55,000
CalOpps.org 459,335
413,212
863,817
2,441,355
4,642,671
-
- - - 209,662
293,914
1,286,658
2,390,758
4,444,671
-
209,662
293,914
1,286,658
2,390,758
4,444,671
-
Foster City Foundation - 21,948 -
SB1 Road Maintenance and Rehabilitation
Low- and Moderate-Income Housing Fund
City Affordable Housing Fund
Sustainable Foster City Fund (Discontinued)
BAERS (Discontinued)
- - 455,057
41,983 - 278,080
235,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
- -
- - - - - - - - - -
General Plan Maintenance Fund
Construction & Demolition Recycling Fund
Technology Maintenance Fund
SB 1186 Fund
1,927,194
758,768
226,770
39,618
5,385
90,600
81,800
65,540
5,800
- 2,017,794
790,568
292,310
45,418
167,400
309,750
105,485
1,300
500
- 167,400
309,750
105,485
1,300
500
(76,800)
(277,950)
(39,945)
4,500
1,850,394
480,818
186,825
44,118
1,850,394
480,818
186,825
44,118
50,000 -
-
-
-
-
-
-
-
-
-
SMIP Fee Fund 620 6,005 - 120 5,505 5,505
CRV Grant Fund 14,124
253,249
6,928
8,940 23,064 12,000
25,000
500
- 12,000
25,000
500
(3,060)
1,000
11,064 11,064
Curbside Recycling Fee Fund
Green Building Fee Fund
Measure W
26,000
1,000
279,249
7,928
- 254,249
7,428
254,249
7,428- 500
1,234,883
588,598
234,143
158,351
22,418
31,221
-
484,300
4,844,910
10,300
636,040
29,000
93,979
594,113
64,320
190,690
11,380,329
1,719,183
5,433,508
244,443
794,391
51,418
815,215
10,000
51,640
386,187
-
- 815,215
10,000
51,640
386,187
-
(330,915)
4,834,910
(41,340)
249,853
29,000
64,064
594,113
64,320
190,690
2,098,898
903,968
5,423,508
192,803
408,204
51,418
903,968
5,423,508
192,803
408,204
51,418
Commercial Linkage Fee
Tenant Relocation Assistance
Workforce Housing
-
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
- -
- - -
Equipment Replacement-Workforce Housing
SB 1383 Implementation
Park Facilities Impact Fee
Public Safety Impact Fee
Transportation Impact Fee
- - -
- - 125,200
594,113
64,320
29,915
-
- 29,915
-
95,285 95,285
- - - 594,113
64,320
594,113
64,320- -
-
-
-
- -
-
-
- 190,690
33,786,980
- - 190,690
24,535,514
190,690
24,535,514Subtotal Special Revenue Funds 22,436,616 41,983 71,948 3,523,755 5,727,711 9,251,466 (Continued on next page)

8.1 Attachment 2 - Third Quarter Projections for the Fiscal Year Ended June 30, 2024

294

ATTACHMENT 2

CITY OF FOSTER CITY / EMID
Summary of Resources and Requirements by Funds
For the Fiscal Year Ended June 30, 2024
(Continued from previous page) THIRD QUARTER PROJECTIONS THROUGH JUNE 30, 2024 Less:

Total Fund
Balance
July 1, 2023
Estimated
Operating
Net Increase
(Decrease) in
Reserves
Total Fund
Balance
June 30, 2024
Nonspendable,
Restricted,
Committed
Available/
Unassigned
June 30, 2024
Estimated
Revenues
Capital
Expenditures
Total
RequirementsFund Transfers In Transfers Out Total Available Expenditures Debt Service Fund
230
231
Levee Debt Service Fund 2020 GO Bonds
Levee Debt Service Fund 2023 GO Bonds
$
$
$
5,505,921
-
$
$
$
4,103,800 $
$
$
-
-
-
$
$
$
-
-
-
$
$
$
9,609,721
461,882
$
$
$
-
-
-
$ 5,349,188
109,513
$ 5,349,188
109,513
$
$
$
(1,245,388)
352,369
$
$
$
4,260,533
352,369
$
$
$
-
-
-
$ 4,260,533
352,369461,882 $
$
$
$
$
$Subtotal Debt Service Funds 5,505,921 4,565,682 10,071,603 5,458,701 5,458,701 (893,019) 4,612,902 4,612,902 Capital Projects Funds
301
326
327
328
Capital Investment - City $
$
$
$
$
77,484,134
2,880,118
5,080,547
-
$
$
$
$
$
3,862,250
1,243,355
38,400
$
$
$
$
$
6,000,000 $
$
$
$
$
- $
$
$
$
$
87,346,384
4,123,473
10,134,684
14,600
$
$
$
$
$
-
-
-
-
-
$
$
$
$
$
4,395,000 $
$
$
$
$
4,395,000 $
$
$
$
$
5,467,250
1,243,355
(4,384,775)
14,600
$
$
$
$
$
82,951,384
4,123,473
695,772
$
$
$
$
$
64,260,349 $
$
$
$
$
18,691,035
4,123,473
695,772
Capital Asset Acquisition and Replacement Fund
Levee Project Fund GO Bonds
-
5,015,737
-
-
-
-
9,438,912
-
-
9,438,912
-
-
-
-Levee Project Fund - 2023 GO Bonds 5,030,337
10,174,342
5,015,737
5,015,737
14,600 14,600
Subtotal Capital Projects Funds 85,444,799 11,015,737 101,619,141 13,833,912 13,833,912 2,340,430 87,785,229 64,260,349 23,524,880 Enterprise Funds
Water Funds
401
405
408
409
Water Revenue $
$
$
$
$
10,347,049
28,827,164
4,070,150
1,206,901
44,451,264
$
$
$
$
$
19,067,216
-
$
$
$
$
$
- $
$
$
1,120,000 $
$
$
$
$
28,294,265
29,947,164
4,518,247
1,514,160
64,273,836
$
$
$
$
$
17,922,284 $
$
$
$
$
- $
$
$
$
$
17,922,284
-
$
$
$
$
$
24,932
1,120,000
199,097
$
$
$
$
$
10,371,981
29,947,164
4,269,247
414,160
$
$
$
$
$
-
25,410,707
156,467
-
$
$
$
$
$
10,371,981
4,536,457
4,112,780
414,160
Capital Investment - Water
Water Equipment Replacement
Water Connection Fee
1,120,000 -
-
-
249,000
-
-
448,097
307,259
19,822,572
-
-
-
1,100,000
-
249,000
1,100,000
19,271,284
(792,741)
551,288Subtotal Water Funds 1,120,000 $ 1,120,000 18,171,284 45,002,552 25,567,174 19,435,378 Wastewater Funds
451
453
454
455
456
458
459
460
461
Wastewater Revenue $
$
$
$
$
$
$
$
$
$
27,456,097
2,000,000
(38,478,808)
157,697,380
1,478
$
$
$
$
$
$
$
$
$
$
23,150,500 $
$
$
4,275 $
$
$
$
$
$
$
$
$
$
27,863,964 $
$
$
$
$
$
$
$
$
$
22,746,908
2,000,000
(36,389,583)
194,562,232
-
$
$
$
$
$
$
$
$
$
$
9,981,803 $
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
9,981,803 $
$
$
$
$
$
$
$
$
$
(14,690,992) $
$
$
12,765,105
2,000,000
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
12,765,105
2,000,000
(38,253,299)
128,455,721
-
Wastewater Rate Stabilization Fund
San Mateo-Foster City Public Financing Authority Loan
Capital Investment - Wastewater
Wastewater Plant Expansion
- 2,089,225 2,089,225 - - -
1,863,716
11,729,789
-
- -
-
-
2,089,225 - 1,863,716 - 225,509 (38,253,299) -
36,864,852 - - 11,729,789 25,135,063 $ 182,832,443 54,376,722 2,797 $
$
$
$
$
$
- 4,275 -
423,501
3,144,950
-
- (1,478)
(80,546)
$
$
$
$
$
$
- -
Wastewater Equipment Replacement
Wastewater Notes/WIFIA Loan Fund
Wastewater Connection Fees
4,027,644
(59,130,828)
347,531
342,955
1,009,800
729,460
-
- - 4,370,599
(54,976,078)
1,076,991
(14,235,063)
119,156,006
- 423,501
3,144,950
-
3,947,098 1,522,670 2,424,428
(58,121,028)
1,076,991
(14,235,063)
36,112,855
3,144,950 -
-
- 1,009,800
729,460
(58,121,028)
1,076,991
-
-
-
-
-
-
-State Revolving Loan Fund - 14,235,063
44,192,527
- - (14,235,063)
(1,908,247)
(14,235,063)
92,012,247Subtotal Wastewater Funds
Subtotal Enterprise Funds
Internal Service Funds
93,920,494 25,235,512 44,192,527 15,413,970 11,729,789 27,143,759 55,899,392 $ 138,371,758 $ 45,058,084 $ 45,312,527 $ 45,312,527 $ 183,429,842 $ 33,585,254 $ 11,729,789 $ 46,415,043 $ (1,356,959) $ 137,014,799 $ 81,466,566 $ 55,548,233 501
502
503
504
505
507
508
509
Vehicle Replacement
Equipment Replacement
Self-Insurance
$
$
$
$
$
$
$
$
$
7,918,311
9,107,957
973,000
$
$
$
$
$
$
$
$
$
2,251,073
379,463
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
10,169,384
9,487,420
2,519,461
8,791,883
12,026,541
3,026,854
6,849,138
4,146,156
57,016,837
$
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
-
-
-
-
$
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
$
116,522
(150,037)
13,654
$
$
$
$
$
$
$
$
$
8,034,833
8,957,920
986,654
$
$
$
$
$
$
$
$
$
1,722,153 $
$
$
$
$
$
$
$
$
6,312,680
6,706,296
986,654
2,251,624
1,546,461
2,891,084
3,953,045
366,500
1,532,807
2,892,584
2,974,968
238,420
1,532,807
2,892,584
2,974,968
238,420
-
Information Technology
Building Maintenance
Longevity Recognition Benefits
PEMHCA Benefits Plan
Compensated Absences
5,900,799
8,073,496
2,660,354
6,287,275
3,464,914
44,386,106
(1,500) 5,899,299
9,051,573
2,788,434
6,603,295
3,645,437
45,967,445
- 5,899,299
9,051,573
2,788,434
6,603,295
3,645,437
41,993,668
978,077
128,080
316,020
180,523
1,581,339
-
$
$
$
$
-
-
-
-
-
561,863 245,843 245,843 -
-681,242 500,719 500,719
Subtotal Internal Service Funds 12,630,731 11,049,392 11,049,392 3,973,777 Fiduciary Fund
604
607
608
Successor Agency of Community Development Agency
Tourism Assessment
SMC Fire
$
$
$
$
(590,865) $
$
$
$
295,800
-
320,000
615,800
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
(295,065)
-
320,000
24,935
$
$
$
$
508,051
-
320,000
828,051
$
$
$
$
-
-
-
-
$
$
$
$
508,051
-
320,000
828,051
$
$
$
$
(212,251) $
$
$
$
(803,116) $
$
$
$
-
-
-
-
$
$
$
$
(803,116)
-
-
-
-
-
-
-
-
Subtotal Agency Fund (590,865) (212,251) (803,116) (803,116) Total All Funds $ 358,107,406 $ 146,070,814 $ 98,472,345 $ 98,498,745 $ 504,151,820 $ 108,900,238 $ 36,750,113 $ 146,750,351 $ (705,937) $ 357,401,469 $ 149,851,345 $ 207,550,124

8.1 Attachment 2 - Third Quarter Projections for the Fiscal Year Ended June 30, 2024

295

CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT COMPARISON OF BUDGET VS. PROJECTED ACTUAL REVENUES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE NINE MONTHS ENDED MARCH 31, 2024
FY 2023-24

AMENDED
ACTUAL
FY 2023-24

ACTUAL ACTUAL
FY 2021-22

YR OVER YR

FAVORABLE
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23ABOVE (BELOW)

ANNUAL BUDGET
FY 2022-23
9 MONTHS
%
9 MONTHS 9 MONTHS (UNFAVORABLE) INCREASE 9 MONTHS 9 MONTHS Fund BUDGET PROJECTED $ % AS OF 3/31/2024 AS OF 3/31/2023 AS OF 3/31/2022 VARIANCE (DECREASE) AS OF 3/31/2024 AS OF 3/31/2023 GENERAL FUND (FUNDS 001-003)
002 PROPERTY TAXES
SECURED $
$
$
$
$
32,100,000
1,315,000
969,300
$ 32,100,000
1,315,000
969,300
$
$
$
$
$
-
-
-
-
-
-
$
$
$
$
$
20,598,885
1,339,707
598,874
$
$
$
$
$
19,394,044
1,154,218
664,283
$
$
$
$
$
17,043,100
1,110,211
410,312
$
$
$
$
$
1,204,841 6.2%

16.1%
(9.8%)

10.6%

6.6%

64.2%
101.9%

61.8%
109.9%

67.5%

63.0%

88.5%

90.9%

99.1%

66.2%
UNSECURED $
$
$
$
185,489
(65,409)
171,199

SUPPLEMENTAL
ERAF
002 PROPERTY TAXES
1,619,850
36,004,150
3,541,000
37,925,300
1,921,150
1,921,150
118.6%

5.3%
1,779,772
24,317,238
1,608,573
22,821,118
1,597,263
20,160,886(1)
(1)
1,496,120
001 PROPERTY TAX IN-LIEU OF VEHICLE LICENSE FEE $ 4,387,980 $ 3,775,648 $ (612,332) (14.0%) $ 2,242,414 $ 4,451,048 $ 1,893,422 $ (2,208,634) (49.6%) 51.1% 97.2% 001 OTHER TAXES
SALES AND USE $
$
$
$
$
3,927,700
3,559,800
1,266,200
311,000
$
$
$
$
$
3,927,700
4,150,000
1,377,000
244,200
$
$
$
$
$
-
590,200
110,800
(66,800)
634,200
-

16.6%

8.8%
$
$
$
$
$
2,280,905
2,697,832
658,970
$
$
$
$
$
2,572,617
2,059,501
667,657
$
$
$
$
$
2,151,469
1,230,847
626,719
$
$
$
$
$
(291,712)
638,331
(8,687)
(11.3%)

31.0%
(1.3%)
(1.9%)

6.2%

58.1%

75.8%

52.0%

42.9%

63.7%

81.1%

83.7%

53.0%

44.6%

75.5%

TRANSIENT OCCUPANCY

FRANCHISE

REAL PROPERTY TRANSFER

SUBTOTAL
(21.5%)

7.0%
133,436 136,047 209,025 (2,611)
9,064,700 9,698,900 5,771,143 5,435,822 4,218,060 335,321 001 LICENSES & PERMITS

BUSINESS LICENSES

PERMITS
$
$
$
1,615,500
1,266,675
2,882,175
$
$
$
1,735,500
1,441,000
3,176,500
$
$
$
120,000
174,325
294,325

7.4%

13.8%

10.2%
$
$
$
1,719,721
1,251,911
2,971,632
$
$
$
1,650,925
1,352,205
3,003,130
$
$
$
1,469,145
1,783,283
3,252,428
$
$
$
68,796
(100,294)
(31,498)

4.2%
(7.4%)
(1.0%)
106.5%

98.8%
111.5%

71.9%

89.3%SUBTOTAL 103.1%
001 INTERGOVERNMENTAL
GRANTS, REIMBURSEMENTS, ARPA (POST, SB 90, GRANTS)
002 HOMEOWNERS PROPERTY TAX RELIEF
003 GRANTS
(2) $
$
$
$
42,000
98,000
-
$
$
$
$
42,000
98,000
-
$
$
$
$
-
-
-
-
-
-
-
-
$
$
$
$
3,122
45,086
-
$
$
$
$
4,122,732
46,453
$
$
$
$
4,070,740
48,040
-
$
$
$
$
(4,119,610)
(1,367)
(99.9%)
(2.9%)

7.4%

46.0%
-
100.9%

46.5%
-6,039 (6,039) (100.0%)
(98.8%)SUBTOTAL 140,000 140,000 48,208 4,175,224 4,118,780 (4,127,016) 34.4% 99.8%

CHARGES FOR CURRENT SERVICES
001 SERVICE FEES
003 RECREATION AND LEISURE

SUBTOTAL
001 FINES & FORFEITURES

INTEREST AND RENTALS

INTEREST
$
$
$
$
471,534
1,526,935
1,998,469
24,900
$
$
$
$
361,266
1,712,836
2,074,102
24,900
$
$
$
$
(110,268)
185,901
75,633
-
(23.4%)

12.2%

3.8%
-
$
$
$
$
438,822
1,538,456
1,977,278
18,311
$
$
$
$
526,001
1,142,296
1,668,297
24,938
$
$
$
$
518,077
747,889
1,265,966
11,380
$
$
$
$
(87,179)
396,160
308,981
(6,627)
(16.6%)

34.7%

93.1%
100.8%

98.9%

73.5%
159.5%

92.4%

18.5% 106.5%
173.2%(26.6%)
(3) $
$
$
$
$
$
$
$
$
1,521,700
1,425,828
2,947,528
496,385
$
$
$
$
$
$
$
$
$
2,623,900
1,505,600
4,129,500
523,196
$
$
$
$
$
$
$
$
$
1,102,200
79,772

72.4%

14.5%

40.1%

5.4%
$
$
$
$
$
$
$
$
$
1,833,378
689,401
$
$
$
$
$
$
$
$
$
885,667
1,099,424
1,985,091
250,914
$
$
$
$
$
$
$
$
$
120,332
998,574
$
$
$
$
$
$
$
$
$
947,711
(410,023)
537,688
107.0%
(37.3%)

27.1%
(41.0%)
(8.7%)
(29.3%)

5.5%
120.5%

48.4%

85.6%

29.8%

69.1%

70.1%

67.4%

90.5%

69.1%
172.6%
122.7%

48.1%

70.5%

76.7%

90.6%

67.6%
101.7%

76.7%

RENTS & CONCESSIONS
SUBTOTAL 1,181,972
26,811
2,522,779
147,953
1,118,906
598,566OTHER REVENUES (102,961)
(3,798,626)
(5,391,130)
1,299,947
292,557
TOTAL GENERAL FUND (FUNDS 001-003)
001 Total Fund 001
002 Total Fund 002
57,946,287
18,591,974
37,299,250
2,055,063
57,946,287
61,468,046
19,482,810
39,672,400
2,312,836
61,468,046
3,521,759
890,836
2,373,150
257,773
3,521,759

6.1% 40,016,956
13,027,478
25,130,672
1,858,806
40,016,956
43,815,582
18,418,608
23,830,725
1,566,249
43,815,582
36,638,394
14,652,331
20,954,545
1,031,518
36,638,394

4.8%

6.4%
003 Total Fund 003 12.5%

6.1%

18.7%
(8.7%)Total Funds 001-003 (3,798,626)
005 GENERAL FUND - COMMUNITY BENEFITS PROGRAM
006 GENERAL FUND - DARE
007 GENERAL FUND - SOLAR INCENTIVE GRANT PROGRAM
008 GENERAL FUND - RENTAL ASSISTANCE
009 GENERAL FUND - ASSET SEIZURE
010 GENERAL FUND - PENSION STABILIZATION FUND
011 GENERAL FUND - FACILITIES REPLACEMENT
012 SUSTAINABLE FOSTER CITY
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
$
$
$
$
$
$
$
$
$
6,500
900
$
$
$
$
$
$
$
$
$
45,700
1,700
$
$
$
$
$
$
$
$
$
39,200
800
603.1%

88.9%

38.9%
187.5%

31.3%

27.3%

25.8%
593.8%

6.2%
$
$
$
$
$
$
$
$
$
39,260
1,437
$
$
$
$
$
$
$
$
$
23,473
38,211
1,361
$
$
$
$
$
$
$
$
$
64,006
7 $
$
$
$
$
$
$
$
$
15,787
(36,774)
664

67.3%
(96.2%)

48.8%

82.2%
(53.5%)

82.2%

82.3%

29.6%
(8.6%)
604.0%
159.7%
112.5%
266.3%

53.5%
1564.9%
382110.0%
680.5%
584.5%
167.5%
446.5%
445.3%
616.0%

76.9%
1,800 2,500 700 2,025 201
800 2,300 1,500
500
2,130 1,169 148 961
1,600 2,100 856 1,842 699 (986)
3,300 4,200 900 3,254 1,786 227 1,468 98.6%
86,000
1,600
108,200
11,100
61,645,846
22,200
9,500
3,597,059
85,212
8,779
46,755
6,776
5,936
503
38,457
2,003

99.1%
548.7%

69.2%TOTAL ALL GENERAL FUND (FUNDS 001-011) 58,048,787 40,159,909 43,936,955 36,710,121 (3,777,046)

SPECIAL REVENUE FUNDS
101 TRAFFIC SAFETY
102 MEASURE "A"
103 GAS TAX
104 PARK-IN-LIEU FEES
105 MEASURE "M"
108 SLESF/COPS GRANT
114 CALOPPS
116 FOSTER CITY FOUNDATION
119 SB 1 ROAD MAINTENANCE AND REHAB
122 HOUSING SUCCESSOR-LMIHF
124 FC AFFORDABLE HOUSING FUND
125 SUSTAINABLE FOSTER CITY FUND (MOVED TO FUND 012)
127 BAERS (PROGRAM WAS CLOSED OUT IN FY 2020-21)
128 GENERAL PLAN MAINTENANCE
129 CONSTRUCTION AND DEMO RECYCLING
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
874,000
980,697
74,800
121,700
155,000
514,077
38,900
856,598
133,700
8,900
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
1,078,300
938,002
126,700
121,700
155,000
533,377
38,900
877,898
185,500
37,000
-
$ -
204,300
(42,695)
51,900
-
-

23.4%
(4.4%)

69.4%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
23,808
802,073
640,468
99,951
100,000
170,765
484,794
27,292
529,964
142,973
32,894
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
24,123
732,177
606,909
54,842
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
46,110
646,207
534,664
6,963
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(315)
69,896
33,559
45,109
100,000
24,856
27,543
6,132
81,646
50,717
23,546
-
(1.3%)

9.5%

5.5%

82.3%
-

39.7%

91.8%

65.3%
133.6%

82.2%
110.2%

94.3%

70.2%

61.9%
106.9%
369.6%
-

40.2%

96.2%

73.3%
442.3%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(3)
(3)
1,908
- - 145,909
457,251
21,160
448,318
92,256
9,348
-
134,232
413,222
32,824
383,048
193,427
28,063
-

17.0%

6.0%

29.0%

18.2%

55.0%
251.9%
-
145.9%
110.6%

56.2%

69.8%

92.9%

32.2%
-
19,300
-

3.8%
-
(3)
(3)
(3)
21,300
51,800
28,100
-

2.5%

38.7%
315.7%
--
- - - - - - - - - - -
(3)
(3)
34,700
66,000
90,600
81,800
55,900
15,800
161.1%

23.9%
384,469
52,822
217,575
48,492
193,426
32,643
166,894
4,330

76.7%

8.9%
1108.0%

80.0%

70.2%

89.5%

Page 1 of 2 ends

8.1 Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues (for the nine months ended March 31, 2024)

296

Attachment 3

CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT COMPARISON OF BUDGET VS. PROJECTED ACTUAL REVENUES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE NINE MONTHS ENDED MARCH 31, 2024
FY 2023-24 ACTUAL
FY 2023-24

ACTUAL ACTUAL YR OVER YR

FAVORABLE
% OF BUDGET
FY 2023-24
9 MONTHS
AS OF 3/31/2024
154.3%
144.4%

37.6%
% OF BUDGET
FY 2022-23
9 MONTHS
AS OF 3/31/2023

26.5%

46.7%

10.1%

2.0%

ABOVE (BELOW)

ANNUAL BUDGET
FY 2022-23
9 MONTHS
FY 2021-22 %

AMENDED
BUDGET
37,540
9 MONTHS 9 MONTHS (UNFAVORABLE) INCREASE
Fund
130 TECHNOLOGY MAINTENANCE
131 SB 1186
132 SMIP FEE
133 CRV GRANT FUND
134 CURBSIDE RECLYCLING
135 GREEN BUILDING FEE
136 MEASURE W
137 COMMERCIAL LINKAGE FEE
138 TENANT RELOCATION ASSISTANCE
139 WORKFORCE HOUSING
140 EQUIPMENT REPLACEMENT-WORKFORCE HOUSING
141 SB1383 IMPLEMENTATION
142 PARK FACILITIES IMPACT FEE
143 PUBLIC SAFETY IMPACT FEE
144 TRANSPORTATION IMPACT FEE

TOTAL SPECIAL REVENUE FUNDS
PROJECTED $ % AS OF 3/31/2024 AS OF 3/31/2023 AS OF 3/31/2022 VARIANCE 4,078
(DECREASE)

7.6%(3)
(3)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 65,540
5,800
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
28,000
600

74.6% $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
57,931 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
53,853 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
105,073 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5,200
620
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

11.5%
-
7,507
233
1,940
114
5,700 5,567
119
287.0%
104.4%
124.9%
(54.9%)
(0.2%)

7.4%
620 - 234
(3)
(3)
(3)
(3)
8,740
22,600
900
8,940 200 2.3%

15.0%

11.1%

24.4%
32635.9%
415.0%

1.7%

3.9%
46889.5%
-
389 173 23 216 4.5%
26,000
1,000
3,400
100
8,720 19,337
488
15,009 (10,617)
(1)

38.6% 94.3%

66.8%

74.7%

1.4%
487 464 54.1%
389,200
14,800
2,000
625,640
27,900
200
484,300
4,844,910
10,300
636,040
29,000
93,979
594,113
64,320
190,690
11,380,329
95,100 284,311
4,827,589
8,062
264,764
11,120
4,423
172,004
16,709
866
217,067 19,547
4,816,469
3,639

73.1%
4,830,110
8,300
1,412 43313.6%

82.3%
164.1%

5.2%
32618.8%
403.1%

72.6%
(3)
(3)
(3)
(3)
80,028 8.5%
10,400 454,252
17,585
973
41 282,248
876

25.4%

76.0%
-
1,100 - 63.0%
93,779 - 107 12.4%
-
486.5%
-- 594,113
64,320
562,463
60,893
190,693
9,974,361
- - 562,463
60,893
190,693
6,570,210
-
- - - -
-
- - -
- 190,690
6,325,917
- - - - -
5,054,412 125.2% 3,404,151 3,071,788 193.0% 197.3% 60.6% 230 LEVEE DEBT SERVICE FUND - 2020 GO BONDS
231 LEVEE DEBT SERVICE FUND - 2023 GO BONDS
$
$
4,011,500
230,451
$
$
4,103,800
461,882
$
$
92,300 2.3% $
$
3,118,331
230,132
$
$
2,943,860
-
$
$
2,761,103
-
$
$
174,471
230,132

5.9%
-

77.7%

99.9%

74.9%
-231,431 100.4%

CAPITAL PROJECTS FUNDS
301
326
327
328

CIP PROJECTS-CITY

CAPITAL ASSET ACQUISITION AND REPLACEMENT FUND

LEVEE PROJECT FUND
(3)
(3)
$
$
$
$
$
2,270,050
1,240,555
38,400
$
$
$
$
$
3,862,250
1,243,355
38,400
$
$
$
$
$
1,592,200 70.1% $
$
$
$
$
3,121,145
950,307
$
$
$
$
$
2,389,937
886,487
294,533
-
$
$
$
$
$
270,616
960,938
86,921
-
$
$
$
$
$
731,208
63,820

30.6%

7.2%
137.5%

76.6%
1580.1%

79.4%
1472.7%
-
2,800 0.2%
-
-
-
-
38,034 (256,499)
5,030,338
5,568,867
(87.1%)
-

99.0%
LEVEE PROJECT FUND - 2023 GO Bonds

TOTAL CAPITAL PROJECTS FUNDS
5,030,337
8,579,342
5,030,337
10,174,342
5,030,338
9,139,824
100.0%
106.5%1,595,000 18.6% 3,570,957 1,318,475 155.9% 277.4%

ENTERPRISE FUNDS
401 WATER REVENUE
405 WATER CIP
(3,4)
(3,4)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
18,301,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
19,067,216 $
$
$
$
$
$
$
$
$
$
$
$
$
$
766,216 4.2% $
$
$
$
$
$
$
$
$
$
$
$
$
$
12,251,175 $
$
$
$
$
$
$
$
$
$
$
$
$
$
10,679,496 $
$
$
$
$
$
$
$
$
$
$
$
$
$
10,194,479
300
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,571,679 14.7%
-

66.9% 59.1%
- -
448,097
307,259
23,150,500
-
- - -
336,073
40,782
15,330,658
-
-
382,827
68,967
13,668,137
-
- - -
408 WATER EQUIPMENT REPLACEMENT
409 WATER CONNECTION FEES
451 WASTEWATER REVENUE
453 WASTEWATER RATE STABILIZATION
454 SM-FC PUBLIC FINANCING AUTHORITY LOAN
455 WASTEWATER CIP
456 WASTEWATER PLANT EXPANSION
458 WASTEWATER EQUIPMENT REPLACEMENT
459 WASTEWATER NOTES/WIFIA LOAN/SRF LOAN
460 WASTEWATER CONNECTION FEES
461 STATE REVOLVING LOAN FUND

TOTAL ENTERPRISE FUNDS
448,097 - - 475,149
243,923
11,116,453
-
(46,754) (12.2%)
(40.9%)

12.2%
-

75.0% 75.0%
307,259 - - (28,185) 13.3% 13.9%
21,540,300 1,610,200 7.5% 1,662,521 71.2% 68.3%
- - - - - -
- - - - - - 59 -
-
- - -
- - -
2,161
-
- - - - - -
439.8%

75.0%
-
-
426.9%

75.0%
-
636 2,797 339.8% 2,797
257,216
483,555
11,966
-
2,715
199,595
255,062
14,639
-
5,367
191,012
63,709
92,988
-
82 3.0%

28.9%

89.6%
(18.3%)
-
342,955 342,955
1,009,800
729,460
-
-
-
57,621
228,493
(2,673)
-
(3)
(3)
-
722,260
-
1,009,800
7,200
-

1.0%
-

1.7%
-

1.2%
-
41,662,507 45,058,084 3,395,577 8.2% 28,714,222 25,271,438 22,383,439 3,442,784 13.6% 68.9% 62.3%

INTERNAL SERVICE FUNDS
501 VEHICLE RENTAL FUND
502 EQUIPMENT REPLACEMENT FUND
503 SELF INSURANCE FUND
504 INFORMATION TECHNOLOGY
505 BUILDING MAINTENANCE
507 LONGEVITY RECOGNITION PLAN
508 PEMHCA FUND
509 COMPENSATED ABSENCES FUND

TOTAL INTERNAL SERVICE FUNDS
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
$
$
$
$
$
$
$
$
$
2,059,573
292,163
$
$
$
$
$
$
$
$
$
2,251,073
379,463
$
$
$
$
$
$
$
$
$
191,500
87,300
3,200

9.3%

29.9%

0.2%
$
$
$
$
$
$
$
$
$
1,708,354
326,733
$
$
$
$
$
$
$
$
$
1,441,348
497,471
$
$
$
$
$
$
$
$
$
1,336,064
553,178
$
$
$
$
$
$
$
$
$
267,006
(170,738)
250,104
154,331
285,795
57,423

18.5%
(34.3%)

27.6%

7.6%

82.9%
111.8%

74.9%

79.7%

80.7%

87.5%

95.3%

84.1%

81.8%

81.3%
105.5%

73.2%

80.2%

79.7%

87.3%
101.1%

82.0%

81.4%
1,543,261
2,749,884
3,752,145
319,200
1,546,461
2,891,084
3,953,045
366,500
1,156,414
2,191,245
3,028,451
279,325
906,310 437,250
141,200
200,900
47,300
108,800
49,000
829,200

5.1% 2,036,914
2,742,656
221,902
1,795,880
2,557,111
178,209

5.4% 10.4%

25.9%

52.0%

9.2%

14.8%

24.0%

7.8%
453,063 561,863 431,908 284,079 168,973 147,829
44,614632,242 681,242 531,838 487,224 378,747
11,801,531 12,630,731 7.0% 9,654,268 8,617,904 7,405,412 1,036,364 12.0%

FIDUCIARY FUNDS
604 SUCESSOR ANGENCY
607 TOURISM ASSESSMENT
608 SMC FIRE
(3) $
$
$
$
289,500
-
$
$
$
$
295,800
-
$
$
$
$
6,300 2.2% $
$
$
$
176,184
-
$
$
$
$
286,247
-
$
$
$
$
275,649
31,430
$
$
$
$
(110,063)
-
(38.5%)
-

60.9%
-
101.7%
--
-
-
-320,000
129,998,030
320,000
146,070,814
90,802 99,704
88,131,216
105,368 (8,902)
13,126,817
(8.9%)

14.9%

28.4%

77.9%

45.1%

73.7%TOTAL CITY / EMID FUNDS 16,072,784 12.4% 101,258,033 74,062,785 Notes and Explanation of Variances:

The majority of property tax revenues are distributed by San Mateo County in December and April of each fiscal year. Notwithstanding, the City received $667,557 in August 2023 from the State to backfill the FY 21/22 Property Tax in Lieu of VLF shortfall. Similarly, we received $2.01 million in August 2022 from the State to backfill the FY 20/21 Property Tax in lieu of VLF shortfall.1 2 3
4 The City received two tranches of one-time ARPA COVID relief payments of $4.05 million each from the federal government in FY 2021-22 and FY 2022-23.

As of 12/31/23, the City's investment portfolio yield was 4.60% and better than the 3.5% budgeted for the year. As a result, projected investment income for the full year has been adjusted upward.

FY 2023-24 water consumption rates and fixed charges increased by 4.3% and 6% respectively; wastewater rates increased by 3%.

Page 2 of 2 ends

8.1 Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues (for the nine months ended March 31, 2024)

297

COMPARISON OF BUDGET VS. PROJECTED ACTUAL EXPENDITURES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE NINE MONTHS ENDED MARCH 31, 2024
FY 2023-24 ACTUAL
FY 2023-24

ACTUAL ACTUAL
FY 2021-22

INCREASE /

DECREASE /
FROM
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23SAVINGS (EXCESS) FROM

AMENDED BUDGET
FY 2022-23
9 MONTHS
%

AMENDED
BUDGET
9 MONTHS 9 MONTHS INCREASE
(DECREASE)
9 MONTHS 9 MONTHS
Fund PROJECTED $ % AS OF 3/31/2024 AS OF 3/31/2023 AS OF 3/31/2022 PRIOR YEAR AS OF 3/31/2024 AS OF 3/31/2023 GENERAL FUND (FUNDS 001-003)
DEPARTMENTS:

COUNCIL/BOARD

CITY MANAGER
$
$
$
$
$
$
$
$
$
$
$
$
$
450,910 $
$
$
$
$
$
$
$
$
$
$
$
$
450,910
1,564,025
1,257,736
656,365
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-

0.0%

0.0%
$ 376,037
1,128,825
764,747
$ 425,815
1,566,447
677,156
$ 301,537
1,046,187
592,436
$
$
$
$
$
$
$
$
$
$
$
$
$
(49,778) (11.7%)
(27.9%)

12.9%

29.3%
175.2%

42.6%
(12.8%)

1.0%

83.4%

72.2%

60.8%

80.3%

42.8%

68.5%

64.3%

69.0%

73.1%

61.8%

51.7%

75.0%

66.4%

82.3%

77.0%

67.5%

67.1%

45.1%

66.9%

71.4%

73.4%

90.4%

63.7%

51.6%

75.0%

74.0%
(2)
(2)
1,564,025
1,257,736
656,365
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(437,622)
87,591COMMUNICATIONS/CITY CLERK
CITY ATTORNEY 526,939 407,651 324,068 119,288
528,790
376,950
(766,218)
118,595
(1,697,182)
569,246
396,304
25,962

HUMAN RESOURCES

FINANCIAL SERVICES

PARKS & RECREATION
POLICE
1,942,043
1,842,002
8,123,729
17,931,083
11,818,947
4,871,051
4,779,845
538,360
1,942,043
1,842,002
8,123,729
17,931,083
11,818,947
4,871,051
4,779,845
538,360
830,664 301,874 557,815
1,261,655
5,226,507
12,380,631
8,633,830
3,012,589
2,471,822
403,770
884,705 761,884
5,992,725
12,262,036
10,331,012
2,443,343
2,075,518
377,808
5,938,509
12,074,613
10,407,212
2,367,150
1,852,032
410,713
FIRE (16.4%)

23.3%

19.1%

6.9%

COMMUNITY DEVELOPMENT

PUBLIC WORKS

LIBRARY
001 SUBTOTAL (1) 55,776,096 55,776,096 37,018,016 37,746,090 36,634,156 (728,074) (1.9%) 002
003

PROPERTY TAX ADMINISTRATION

SPECIAL RECREATION
$
$
369,609 $
$
369,609 $
$
-
-

0.0%

0.0%
$
$
164,459 $
$
152,731 $
$
152,731 $
$
11,728 7.7% 44.5%

66.1%

45.1%

64.9%3,257,772 3,257,772 2,153,499 1,391,327 1,056,696 762,172 54.8% TOTAL GENERAL FUND (FUNDS 001-003) $ 59,403,477 $ 59,403,477 $ - 0.0% $ 39,335,974 $ 39,290,148 $ 37,843,583 $ 45,826 0.1% 66.2% 73.4% 005 GENERAL FUND - COMMUNITY BENEFITS PROGRAM
006 GENERAL FUND - DARE
$
$
$
$
$
$
$
$
$
359,667 $
$
$
$
$
$
$
$
$
359,667 $
$
$
$
$
$
$
$
$
- 0.0%

98.4%

0.0%
-
$
$
$
$
$
$
$
$
$
73,668 $
$
$
$
$
$
$
$
$
89,287 $
$
$
$
$
$
$
$
$
209,557 $
$
$
$
$
$
$
$
$
(15,619) (17.5%) 20.5% 17.2%
38,366 600 37,766 - - - - - - -
007 GENERAL FUND - SOLAR INCENTIVE GRANT PROGRAM
008 GENERAL FUND - RENTAL ASSISTANCE
009 GENERAL FUND - ASSET SEIZURE
25,000 25,000 - 18,000 7,000 9,000 11,000 157.1% 72.0% 28.0% - - - - - - - - - -
4,097 4,097 - 0.0%
-
- - - - - - -
010 GENERAL FUND - PENSION STABILIZATION FUND
011 GENERAL FUND - FACILITIES REPLACEMENT
012 SUSTAINABLE FOSTER CITY
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
- -
-
-
- - -
120,945
59,951,552
120,945
59,913,786

0.0%

0.1%
4,258 4,447 92,307
38,154,447
(189)
41,018
(4.3%)

0.1%

3.5%

65.8%

3.4%

72.6%TOTAL ALL GENERAL FUND (FUNDS 001-011) 37,766 39,431,900 39,390,882

SPECIAL REVENUE FUNDS
101
102
103
104
105
108
114
116
119
122
124
125
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
TRAFFIC SAFETY $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
745,435
100,000
100,000
783,050
136,250
455,057
278,080
235,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- 0.0%

0.0%

0.0%
100.0%

0.0%

0.0%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
45,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
45,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
45,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- 0.0% 75.0% 75.0%
MEASURE "A" - 657,846 388,006 - 269,840 69.5% 15.5% 25.9% GAS TAX - 774,162 975,902 477,034 (201,740) (20.7%) 82.7% 172.6% PARK-IN-LIEU FUND 745,435 - - - - - - -
MEASURE "M" 100,000
100,000
783,050
136,250
455,057
278,080
235,000
-
- 100,000 119,300 - (19,300) (16.2%) 100.0% -
SLESF/COPS GRANT - 170,765 145,909 134,232 24,856 17.0% 170.8% 145.9% CALOPPS - 241,201 338,875 346,947 (97,674) (28.8%) 30.8% 60.1%

FOSTER CITY FOUNDATION
SB 1 ROAD MAINTENANCE AND REHAB

HOUSING SUCCESSOR-LMIHF

FC AFFORDABLE HOUSING FUND
SUSTAINABLE FOSTER CITY (MOVED TO FUND 012)
BAERS (PROGRAM CLOSED OUT IN FY 20/21)

GENERAL PLAN MAINTENANCE

CONSTRUCTION AND DEMO RECYCLING

TECHNOLOGY MAINTENANCE
SB 1186
- 57,573 36,701 21,508 20,872 56.9% 42.3% 110.0%
- - 1,286,699 174,492 (1,286,699) (100.0%) - -
- 58,961 50,427 62,621 8,534 16.9% 21.2% 37.0%
- 43,717 105,385 276,618 (61,668) (58.5%) 18.6% 10.1%
- - - - - - - -
- - - - - - - - - - -
167,400
309,750
105,485
1,300
167,400
309,750
105,485
1,300
500
- 0.0%

0.0%

45.3%

0.0%

0.0%
-
83,500 425,133 151,583 (341,633) (80.4%) 49.9% 50.5%
- 26,709 55,404 31,170 (28,695) (51.8%) 8.6% 18.3%
- 80,676 70,776 93,090 9,900 14.0% 76.5% 67.1%
- 1,300 - - 1,300 - 100.0% -
SMIP FEE 500 - - - - - - - -
CRV GRANT FUND 21,919
25,000
500
12,000
25,000
500
9,919 11,993 280 11,781 11,713 4183.2% 54.7% 2.0%

CURBSIDE RECLYCLING

GREEN BUILDING FEE
-
-
-
-
-
-
-
-
-
-
-
- - - - - - -
- - - - - - -
MEASURE W 815,215
10,000
51,640
386,187
-
815,215
10,000
51,640
386,187
-
240,215 4,679 1,500 235,536 5033.9% 29.5% 1.0%

COMMERCIAL LINKAGE GEE

TENANT RELOCATION ASSISTANCE

WORKFORCE HOUSING

EQUIPMENT REPLACEMENT-WORKFORCE HOUSING
SB 1383 IMPLEMENTATION

PARK FACILITIES IMPACT FEE

PUBLIC SAFETY IMPACT FEE

TRANSPORTATION IMPACT FEE
8,466 - - 8,466 - 84.7% -
- - - - - - -
168,500 98,576 6,060 69,924 70.9% 43.6% 29.9%
- - -
-
-
-
-
- - - -
29,915
-
29,915
-

0.0%
-
16,316 6,594 9,722 147.4% 54.5% 13.9%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- - -
- - -
TOTAL SPECIAL REVENUE FUNDS $ 10,006,820 $ 9,251,466 $ 755,354 7.5% $ 2,786,900 $ 4,153,646 $ 1,833,636 $ (1,366,746) (32.9%) 27.9% 67.0%

Page 1 of 2 ends

8.1 Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures (for the nine months ended March 31, 2024)

298

Attachment 4
COMPARISON OF BUDGET VS. PROJECTED ACTUAL EXPENDITURES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE NINE MONTHS ENDED MARCH 31, 2024
FY 2023-24 ACTUAL
FY 2023-24

ACTUAL ACTUAL
FY 2021-22

INCREASE /

DECREASE /
FROM
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23SAVINGS (EXCESS) FROM

AMENDED BUDGET
FY 2022-23
9 MONTHS
%

AMENDED
BUDGET
9 MONTHS 9 MONTHS INCREASE
(DECREASE)
9 MONTHS 9 MONTHS
Fund PROJECTED $ % AS OF 3/31/2024 AS OF 3/31/2023 AS OF 3/31/2022 PRIOR YEAR AS OF 3/31/2024 AS OF 3/31/2023 230 LEVEE DEBT SERVICE FUND - 2020 GO BONDS
LEVEE DEBT SERVICE FUND - 2023 GO BONDS
$
$
5,349,188 $
$
5,349,188
109,513
$
$
-
-

0.0%

0.0%
$ 5,346,912
107,512
$ 6,376,713
-
$ 6,488,113
-
$
$
(1,029,801)
107,512
(16.1%)
-
100.0%

98.2%
100.0%
-231 109,513 $ $ $

CAPITAL PROJECTS FUNDS
301 CIP PROJECTS-CITY $ 4,395,000 $ 4,395,000 $ - 0.0% $ 5,265,605 $ 1,498,253 $ 35,359 $ 3,767,352 251.4% 119.8% 32.9%

CAPITAL ASSET ACQUISITION AND REPLACEMENT
FUND326
327
(3) $
$
- $
$
- $
$
-
-
- $
$
- $
$
7,015,009 $
$
- $
$
(7,015,009) (100.0%)
(60.8%)
- 99.5%
-LEVEE PROJECT FUND 9,438,912 9,438,912 0.0% 6,802,605 17,354,921 21,221,761 (10,552,316) 72.1% TOTAL CAPITAL PROJECTS FUNDS $ 13,833,912 $ 13,833,912 $ - 0.0% $ 12,068,210 $ 25,868,183 $ 21,257,120 $ (13,799,973) (53.3%) 87.2% 222.8%

ENTERPRISE FUNDS
401
405
408
409
451
453
454
455
456
458
459
WATER REVENUE $
$
$
$
$
$
$
$
$
$
$
17,922,284
-
$
$
$
$
$
$
$
$
$
$
$
17,922,284
-
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-

0.0%
-
$
$
$
$
$
$
$
$
$
$
$
10,800,686
358,263
17,199
$
$
$
$
$
$
$
$
$
$
$
9,887,611
131,394
250,002
-
$
$
$
$
$
$
$
$
$
$
$
9,348,576
584,211
35,184
-
$
$
$
$
$
$
$
$
$
$
$
913,075
226,869
(232,803)
205,931
(121,070)
-

9.2%
172.7%
(93.1%)
-

60.3%
-

57.5%

4.1%
129.6%
-

CIP-WATER

WATER EQUIPMENT REPLACEMENT

WATER CONNECTION FEES

WASTEWATER REVENUE
249,000
1,100,000
9,981,803
-
249,000
1,100,000
9,981,803
-

0.0%

0.0%
-

6.9%

18.7%

51.9%
-
205,931
5,178,685
-
5,299,755
-
4,897,617
-
(2.3%)
-

60.9%
-WASTEWATER RATE STABILIZATION

SM-FC PUBLIC FINANCING AUTHORITY LOAN

CIP-WASTEWATER
1,863,716
11,729,789
-
1,863,716
11,729,789
-

0.0%

0.0%
-
2,085,000
14,604,056
-
2,084,250
24,876,748
-
2,087,125
17,270,569
-
750 0.0%
(41.3%)
-
111.9%
124.5%
-
111.9%
641.0%
-
(10,272,692)
-WASTEWATER PLANT EXPANSION

WASTEWATER EQUIPMENT REPLACEMENT

WASTEWATER NOTES/WIFIA LOAN/SRF LOAN
423,501
3,144,950
423,501
3,144,950

0.0%

0.0%
184,764
3,139,780
55,985
3,139,920
111,570
2,047,156
128,779
(140)
230.0%
(0.0%)

43.6%

99.8%

18.1%

30.8%
460
461

WASTEWATER CONNECTION FEES

STATE REVOLVING LOAN FUND
$
$
-
-
$
$
-
-
$
$
-
-
-
-
$
$
-
-
$
$
-
-
$
$
-
-
$
$
-
-
-
-
-
-
-
-
TOTAL ENTERPRISE FUNDS $ 46,415,043 $ 46,415,043 $ - - $ 36,574,364 $ 45,725,665 $ 36,382,008 $ (9,151,301) (20.0%) 78.8% 60.5%

INTERNAL SERVICE FUNDS
VEHICLE RENTAL FUND501
502
503
504
505
507
508
509
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-

0.0%

0.0%
$
$
$
$
$
$
$
$
897,260
39,003
$
$
$
$
$
$
$
$
1,146,077
100,370
$
$
$
$
$
$
$
$
1,221,993
45,873
$
$
$
$
$
$
$
$
(248,817)
(61,367)
293,843
(25,673)
(16,935)
17,290
(21.7%)
(61.1%)

25.2%
(1.6%)
(0.9%)

12.3%

6.7%

42.0%

7.4%

57.5%

26.9%

86.8%

65.4%

41.3%

59.0%

62.4%

EQUIPMENT REPLACEMENT FUND
SELF INSURANCE FUND (4) 1,532,807
2,892,584
2,974,968
238,420
1,532,807
2,892,584
2,974,968
238,420
1,460,405
1,545,405
1,855,585
157,988
152,993
119,606
1,166,562
1,571,078
1,872,520
140,698
811,161
1,347,864
1,725,151
146,305
135,936
233,968

95.3%

53.4%

62.4%

66.3%

62.2%

23.9%

INFORMATION TECHNOLOGY

BUILDING MAINTENANCE

LONGEVITY RECOGNITION PLAN
PEMHCA FUND 245,843 245,843 143,401 9,592
COMPENSATED ABSENCES FUND 500,719 500,719 350,244 (230,638) (65.9%) TOTAL INTERNAL SERVICE FUNDS $ 11,049,392 $ 11,049,392 $ - 0.0% $ 6,228,245 $ 6,490,950 $ 5,668,251 $ (262,705) (4.0%) 56.4% 55.6%

FIDUCIARY FUND
604 SUCESSOR ANGENCY
607 TOURISM ASSESSMENT
608 SMC FIRE FEES
$
$
$
508,051
-
320,000
$
$
$
508,051
-
320,000
$
$
$
-
-
-

0.0%
-

0.0%
$
$
$
8,876
-
82,386
$
$
$
10,610
-
64,751
$
$
$
11,091
31,430
89,907
$
$
$
(1,734)
-
17,635
(16.3%)
-

27.2%

1.7%
-

25.7%

3.2%
-

29.3%
TOTAL CITY / EMID FUNDS $ 147,543,471 $ 146,750,351 $ 793,120 0.5% $ 102,635,305 $ 128,081,400 $ 109,916,003 $ (25,446,095) (19.9%) 69.6% 77.0% Notes and Explanation of Variances:
1 FY 23/24 expenditures for various departments were comparatively lower than the prior two years as the City elected not to prepay the entire year's unfunded liability obligations to CalPERS in July, but rather make monthly payments due to its high investment portfolio yields. These July payments totaled $7.51M and $6.79M for FY 22/23 and FY 21/22 respectively.

Expenditures for the City Managers office are lower as the self insurance program was transferred to the Administrative Services Dept in FY 23/24 and the Principal Management Analyst position has been left unfilled. FY 21/22 expenditures were comparatively higher and included severance pay to its former City Manager.2
3 4
The City acquired 22 units of workforce housing in August 2022 The City makes its annual insurance premium payments in the 1st quarter of each fiscal year.

Page 2 of 2 ends

8.1 Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures (for the nine months ended March 31, 2024)

299

DATE: June 3, 2024

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

FROM: Priscilla Schaus, Communications Director/City Clerk DEPARTMENT: Communications/City Clerk
SUBJECT: APPOINTMENT OF TWO MEMBERS TO NEW FULL TERMS ON

THE PLANNING COMMISSION

RECOMMENDATION
It is recommended that the City Council interview and by resolution, appoint two (2) members to new full terms from June 1, 2024 through May 31, 2028 on the Planning Commission. With this appointment, the Planning Commission will have a full complement.

EXECUTIVE SUMMARY
A notice of vacancy to fill the new full term on the Planning Commission was advertised in the local newspapers, posted on social media, and displayed on the City’s website, FCTV, and the marquee for five (5) weeks. Five (5) residents submitted their applications by the established deadline.

The following five residents (listed in alphabetical order) are to be considered tonight:

1. Ajay Godbole

2. Nicolas Haddad

3. Ravi Jagtiani

4. Shivangini Patil

5. Jordan Pisarcik

9.1 9.1 Staff Report

300

Nicolas Haddad and Ravi Jagtiani currently serve on the Planning Commission and are both eligible to serve a second term.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
There is no fiscal impact.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
City Council Operations and Improved Community Engagement ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Notice of Vacancy
Attachment 3 – Planning Commission Applications

9.1 9.1 Staff Report

301

7 6
8 RESOLUTION NO. _______

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

APPOINTING TWO MEMBERS TO THE FOSTER CITY PLANNING COMMISSION

CITY OF FOSTER CITY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FOSTER CITY, as follows:

WHEREAS, effective June 1, 2024, __________ and __________ are hereby appointed to fill two new full terms from June 1, 2024 to May 31, 2028 on the Foster City Planning Commission.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 3rd day of June, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

9.1 Attachment 1 - Resolution

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NEWS RELEASE
The City of Foster City
Priscilla Schaus, Public Information Officer
[email protected]; (650) 286-3250

FOR IMMEDIATE RELEASE
Press Release #032624-01
Serve Your Community – Join the Planning Commission
Contact: Priscilla Schaus, Communications Director/City Clerk, (650) 286-3250, [email protected]
Foster City, CA; March 26, 2024 – Want to make a positive impact in Foster City? Serving on a committee or commission is an opportunity for you to participate in local government and serve your community. The City of Foster City is currently accepting applications for the Planning Commission to fill two vacancies. Term information is as follows:
•Planning Commission (two vacancies): Four-year terms, starting June 1, 2024, to May 31, 2028. Meetings are held on the 1st and 3rd Thursday of each month, and Study Sessions, if needed, are held on the 1st and 3rd Tuesday of each month.

The Planning Commission consists of five Foster City residents. To be eligible to apply, a resident must be at least eighteen years old and must have continuously resided in the City for a period of at least three years immediately prior to submission of an application for appointment to the Planning Commission. Community involvement in Foster City, a license in architecture and relevant experience will be considered in evaluating applicants. Appointments are made by the City Council. Planning Commissioners are compensated $269 per month and are eligible to participate in the City’s health benefits plan.

The Planning Commission acts under Policies and Ordinances adopted by the City Council as set forth in Chapter 2.28 of the Foster City Municipal Code. The Commission makes recommendations to the City Council regarding General Plan amendments, rezoning, zoning ordinance amendments, environmental review, and other matters related to land use and development in the City. The Commission also reviews and renders decisions on conditional use permits, major room additions, new home constructions, use permit modifications, and major development projects pursuant to the architectural and design review and subdivision sections of the Foster City Municipal Code.

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Those interested are invited to submit applications by 5:00 p.m. on Thursday, May 2, 2024.

Applicants are required to attend the June 3, 2024 City Council meeting for consideration of an official appointment. For more information and to download an application, visit www.fostercity.org/bc-pc. Return completed applications by email to [email protected].

Please note that incomplete applications will not be accepted. ###

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9.1 Attachment 3 - Planning Commission Applications

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COMMITTEE/COMMISSION
Application for Appointment
By City Council/Board of Directors
Return completed application forms to:

Communications/City Clerk Department
610 Foster City Boulevard
Foster City, CA 94404
(650) 286-3250
[email protected]
Please type or print in BLACK INK ONLY
Date:

Name: E-mail Address:

How long have you lived in Foster City?
Length of Employment:

Phone:

Present Street Address:

Home Phone:

Your Present Position:

Self Employed:

Name and Description of Business:

Address:

Length of Ownership:

Have you ever served on a public board, committee or commission? If yes, please explain:

Do you have any relatives presently employed by the city or serving in any official capacity? If yes, please give names(s) and relationship:

DEADLINE FOR FILING:

For more information, visit www.fostercity.org
5:00PM THURSDAY
May 2, 2024
Cell Phone:

What is your occupation?
Employer's Name:

Employer's Address:

Committee or Commission for Which Application is Filed: _Planning Commission___________4/29/2024 Jordan Pisarcik
, Foster City, CA 94404
3 years
Healthcare technology
Optum
Eden Prairie, MN 55344
Vice President, Product 3 years
No
No

COMMUNICATIONS/

CITY CLERK
4/30/2024 P 6:28

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Please note, no attachments to this form will be accepted.

Please list names of any community organizations or activities to which you belong or in which you have participated, including dates of pa
rticipation and offices held, if any:
________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________ Please list individuals who are well acquainted with your personal and/or professional qualifications Name Address Occupation Phone
Name Address Occupation Phone
Name Address Occupation Phone
Please state reasons and objectives for desiring to become a member of this committee/commission:

Brown University Bruin Club (student-admissions liaising group for campus tours, info sessions, etc) - Director - 9/2006-5/2008 Developmentally Disabled Literacy Program - Teacher - 9/2006-5/2008 Ceramics Class - Foster City Recreation Center - 9/2022-3/2023 Ashish Kasturia Foster City, CA 94404 Finance
John Kwan Foster City, CA 94404 Retired
Marti Mihojevich Foster City, CA 94404 Retired
My wife grew up in Foster City and we moved here three years ago with our family of three because we really love the community. We did some renovation work on our house to update it, so I have some experience managing the considerations of a residential project (planning, permitting, inspections, etc).

The building and planning departments were both great to work with and very understanding, but the process can be cumbersome, especially to residents who are new to home projects. This challenge is not unique to Foster City, but I believe there are simple improvements that can be made to help residents and businesses move in, update, and become a thriving part of our community. Now that we are past the 50-year anniversary of the town, upgrading buildings will be an important step in the years ahead to keep our city vibrant and attractive.

Some ideas we could consider are:
- Incentives and easier permitting for infrastructural upgrades to buildings (asbestos remediation, earthquake retroﬁtting, etc)
- Prioritizing permit revisions for quick turnaround so that in-ﬂight projects can continue and complete more seamlessly
- New standards for design and architecture that facilitate building and upgrading houses with more modern styles; I know this has been proposed recently but will require thoughtful implementation - Incentives to create more areas like Foster Square, bringing residents of multiple generations together with restaurants and retail space
Thank you in advance for your consideration! I look forward to serving the Foster City community.

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1 DATE: June 3, 2024

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

FROM: Derek Schweigart, Director of Parks and Recreation Justin Lai, Senior Civil Engineer
Tiffany Oren, Recreation Manager
DEPARTMENT: Parks and Recreation Department
SUBJECT: APPROVAL OF PLANS AND SPECIFICATIONS AND

AUTHORIZATION TO CALL FOR BIDS FOR THE RECREATION
CENTER REBUILD PROJECT (CIP 301-678)

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution approving the Plans and Specifications and authorizing the call for bids for the Recreation Center Rebuild Project (CIP 301-678).

CEQA Status: Adopted Mitigated Negative Declaration for the Recreation Center Rebuild Project.

EXECUTIVE SUMMARY
Beginning in 2019, the Recreation Center Rebuild Project (Project) has been a priority project for the City with an anticipated budget of $55 million dollars. Group 4 Architecture, Research + Planning, Inc. (Group 4) was hired to design the building and Griffin Structures was hired to be the construction managers for the Project. The designs have been brought to City Council on multiple occasions for comments and policy direction.

To streamline the bidding process, a Request for Qualifications was issued to have a shortlist of general contractors who could bid on the Project. Five (5) contractors submitted their qualifications and four (4) were approved to be on the pre-qualification list.

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1 Group 4 and the design team have substantially completed the plans and specifications and the project is ready to be advertised. The Project is currently going through the permitting process, and the permitted plans and specs will be brought to City Council at the time of award at a future Council meeting. Staff is requesting advertising now, to meet the Project’s design and construction timeline and avoid the possibility of conflicts with planned Recreation Center programming and community events in the summer of 2026.

The engineer’s estimate for construction of the Project is approximately $54,000,000 with a construction duration of 20 months. There is $55,432,578 in the approved Project budget currently, which will need to be increased. Based on the most recent budget estimate provided by Group 4 and Griffin Structures in May, the overall project cost estimate is approximately $64,609,000 without bid alternates. Based on the direction provided by the City Council on January 16, 2024, staff addressed the Project budget shortfall with a mix of various funding proposals and strategies which are reflected in FY 2024-2025 Preliminary Budget as well as in the table provided in the Fiscal Impact section of this report. The final Project budget will be determined when the bid is awarded for construction and any bid alternates are considered and approved by the City Council.

BACKGROUND
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 in 2017. On January 31, 2022, the City Council adopted Minute Order No. 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 for professional design, bidding, and construction support services. The design phase began in January 2023 with the award of a construction management contract to Griffin Structures.

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 approved the schematic design and Project budget estimate, as well as provided direction on additional enhancements to be included in the Project.

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1 At the regular City Council meeting on December 18, 2023, staff and Group 4 presented to City Council a full design development presentation which incorporated and reflected the design refinements directed by Council at the meeting on September 18, 2023. The Design Development Project Update was received and accepted unanimously in Minute Order No. 1953 which allowed staff to begin the construction document phase of the design.

At the regular City Council meeting on January 16, 2024, the City Council received a Project budget update from staff along with various proposals to address the Project budget shortfall between the approved budget of $55,374,250 and the design team’s estimate of $65,943,000, a difference of $10,568,750. To address the shortfall, the City Council, by Minute Order No. 1956 directed several actions including:
•Eliminating the Bocce Court Expansion from the Project scope and budget reducing the budget by $1,009,000 while still maintaining the design as a bid alternative if the bids come in lower than anticipated; •Authorizing the release of $5,000,000 from the remaining Levee project funds and appropriate it to the Project;
•Appropriating grant funds from Gilead Foundation in the amount of $500,000 toward the Project;
•Appropriating anticipated park impact fees from the new Gilead building at 331 Lakeside Drive in the amount of $594,000 to the Project: and •Eliminating or delaying some park CIP projects through reprioritization.

After the latest budget update at the City Council meeting on January 16, 2024, the project has moved into the construction documents phase. During this phase, the Project Management Team (PMT) held regular meetings to refine and incorporate necessary details and technical specifications into the construction plans. At the project's fourth and final Integrated Design Workshop (IDW) in March, the PMT collaborated with other city departments and consultants to finalize room layouts, select fixtures, and address audio- visual, telecommunication, and security needs. An Interiors Committee provided recommendations for the building's color palette, wayfinding signage, lighting, and floor and ceiling materials and finishes. For the exterior site plan, the PMT worked with landscape designers and engineers to finalize the rose garden and events plaza, as well as the selection of plantings and monumental signage.

To keep the community informed about the project's status, the website has been updated to better display information, including the project timeline, flythrough video, renderings, and links to past reports and City Council updates.

At the regular City Council meeting on February 20, 2024, the City Council authorized the issuance of a Request for Qualifications for a general contractor for the construction of the Project. Five contractors submitted their qualification packages and staff approved four of the five contractors for future bidding following a scoring process.

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1 At the regular City Council meeting on April 1, 2024, the City Council approved an additional appropriation to the Project budget in the amount of $58,323 with West Coast Code Consultants (WC3) for plan check services for the Project. This increased the Project budget to $55,432,578. Group 4 has submitted the plan check set and performed one round of revisions. It is anticipated that there may be additional comments, but the plan set is substantially complete.

ANALYSIS
The Project plans and specifications have been submitted to the Authorities Having Jurisdiction (AHJ), which includes the Project’s plan check consultant West Coast Code Consultants, Inc. (WC3) and the consultant from 4 Leaf Inc. who is backfilling for the vacant Chief Building Official position. The plan check review and approval are currently underway with the building permit approval anticipated by the time the bids are submitted.

It is recommended to issue the call for bids at this time to optimize the Project schedule and avoid delays in construction which may have cost implications due to escalation and other market-driven conditions. By advertising the project now, it gives the City the opportunity to start construction earlier to potentially reduce the number of summers missed for community events and programming when the Recreation Center is closed during construction.

The Project is currently in the process of obtaining the building permit approval. The first- round review by the AHJ has been completed and the design team met with plan check reviewers to review the comments and has revised and resubmitted the documents to address the comments. The second round of permit review is underway.

The Project has received Use Permit approval from Planning and San Mateo County Health Department. Recology has approved the application for the trash enclosure and the approval letter has been received. The plans and specifications have been developed based on an interactive planning and design process from project initiation which involved regular PMT meetings, extensive community outreach, Joint Planning Commission and Parks and Recreation Committee meetings, City Council meetings as well as technical meetings with City staff and AHJs to confirm project goals, scope and requirements are met. It is anticipated that any additional changes required by the AHJs to obtain permit approval will be issued via addendums to the potential bidders prior to the bids being submitted to allow bidders to include these changes in their bid submissions. This approach is common for construction bidding for projects of this scope and size and has been successful on other similar projects.

The completed plans and specifications were made available to City Council for review and are available for inspection by the public in the City Council’s Office at City Hall. The City Council will have another chance to see the completed permitted set of plans if requested, when the Project is brought back to the City Council to award the bid to the general contractor. A hardcopy of the substantially completed plans and specifications is available for viewing in the City Council’s office at City Hall.

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1 The bidding process is expected to be efficient due to the pre-qualification process performed earlier this year, lessening the workload and review time for staff. There are four (4) pre-qualified contractors who will have the opportunity to bid on the Project. The scope of work includes demolishing the existing Recreation Center and rebuilding a new Recreation Center in its place at Leo J. Ryan Park. The new facility will be optimized for the programming and events for the City. Major site, utility, structural, and landscape work are anticipated on the property. It is anticipated that construction will start in September 2024 following summer events with 20 months of construction.

City staff and the City’s Construction Manager Griffin Structures will oversee the construction of the Recreation Center. The engineer’s estimate for the base work is $54,000,000. Several bid alternates are included in the bid set that include, but are not limited to a covered entrance, photovoltaic array, bocce courts, a play structure, wind barriers, and room partitions. If the bids come in favorable, some bid alternates may be included without increasing the budget. All bid alternate items will be brought back to City Council for consideration in the award process.

The anticipated project schedule is as follows:

Approval of plans and specifications &
authorization to call for bids
June 3, 2024
Bid Opening and City Council Award July, 2024
Contract execution August 2024
Project notice of completion June 2026
CEQA
In July 2023, the City of Foster City, in accordance with the requirements of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines adopted by the Secretary of Resources, and the City of Foster City Environmental Review Guidelines, prepared an Initial Study and Mitigated Negative Declaration (SCH # 20231009) with Standards Conditions and Mitigation Monitoring and Reporting Program (SCAMMRP), and CEQA Findings (IS/MND) for the Recreation Center Rebuild Project.

On November 16, 2023, the City Planning Commission adopted the IS/MND and approved the Use Permit for the Project. Pursuant to Public Resources Code section 21166 and CEQA Guidelines section 15164(b), the City prepared an Addendum to the adopted Mitigated Negative Declaration for the temporary Modular Buildings portion of the work and it was approved by the City Council on February 20, 2024.

FISCAL IMPACT
The Project (CIP 301-678) has an approved budget of $55,432,578 with additional funding needed at the time the construction bid is awarded. The engineer’s construction budget estimate is $54,000,000, with a total current Project budget estimate of $64,609,000 as of May 15, 2024.

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1 In January 2024, the Project budget estimate presented was $65,943,000 (based on November 2023 estimate) with previously approved funding of $55,374,250. The budget shortfall at the time was $10,568,750. Based on the direction provided by the City Council at the January 16, 2024, regular meeting, staff addressed the budget shortfall with a mix of various funding proposals and strategies. Additionally, based on Council direction, the $3.38M in the City’s Capital Asset Acquisition and Replacement Fund will not be used to offset the previously approved $19 million in General Fund Reserves towards the project.

As noted previously, on January 16, the Council provided direction that CIP 301-655 (Leo Ryan Park Lawn Conversion and Bocce Court Expansion) be closed out and the funding transferred to the Project. The Council further directed that the addition of Bocce courts be included as a bid alternate to the Project. After the removal of the Bocce Court Expansion project from the Project scope and budget the budget shortfall was $9,559,750. Since the January City Council meeting, staff was able to identify $1,841,400 in the Building Maintenance Internal Services Fund (ISF) that is currently set aside for roof replacement and other repairs for the current recreation center that could go towards the Project. Identifying the approx. $1.8M in Building Maintenance ISF eliminated the need to use funding from other CIPs for the Project. The following is an overview of current Project funding sources as reflected in the City’s FY 2024-2025 Preliminary.

Description
Funding
Source
Prior Year
Funding FY 2024-25 FY 2025-26 Total
Recreation Center
Rebuild Project $ 55,432,578 $55,432,578
City CIP Fund City CIP 343,050 343,050
Gilead Foundation Grant City CIP 500,000 500,000 CIP 657 Levee Project City CIP 5,000,000 5,000,000 CIP 655 Bocce Courts
Park-in
Lieu 745,000 745,000
CIP 655 Bocce Courts City CIP 83,000 83,000 Park Facility Impact Fees PIF 560,300 467,000 1,027,300 Building Maintenance
Fund BMF 1,861,400 $ 1,861,400

*$ 55,432,578

$9,092,750 $ 467,000

*$64,992,328
*The estimate reflects the additional $58,328 for plan check services that were approved on April 1, 2024.

The current total Project budget estimate from May 2024 including these fees is $64,609,000 which is tracking lower than previous estimates. Staff would also like to note that impact fee funds from future development projects may be used to offset the costs of the Project.

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

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1 ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Minute Order No. 1956

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2 1
8 3
RESOLUTION NO.____________

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

APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING THE CALL FOR BIDS FOR THE RECREATION CENTER REBUILD PROJECT (CIP 301-678) (CEQA STATUS: ADOPTED MITIGATED NEGATIVE DECLARATION FOR THE RECREATION

CENTER REBUILD PROJECT)

CITY OF FOSTER CITY
WHEREAS, the Plans and Specifications for the Recreation Center Rebuild Project (CIP 301-678) (“Project”) have been substantially completed and the project is ready to be advertised; and
WHEREAS, the City retained Group 4 Architecture, Research + Planning, Inc. (Group 4) to design the building as the architecture and engineering firm; and WHEREAS, the plans and specifications were made available to the City Council for review and are available for inspection in the City Council offices at City Hall; and WHEREAS, the City Engineer has reviewed the plans and specifications and believes the plans and specifications for the Project are consistent with the City’s standards: and
WHEREAS, In July 2023, the City of Foster City, in accordance with the requirements of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines adopted by the Secretary of Resources, and the City of Foster City Environmental Review Guidelines, prepared an Initial Study and Mitigated Negative Declaration (SCH # 20231009) with Standards Conditions and Mitigation Monitoring and Reporting Program (SCAMMRP), and CEQA Findings (IS/MND) for the Recreation Center Rebuild Project; and
WHEREAS, On November 16, 2023, the City Planning Commission adopted the IS/MND and approved the Use Permit for the Project. Pursuant to Public Resources Code section 21166 and CEQA Guidelines section 15164(b), the City prepared an Addendum to the adopted Mitigated Negative Declaration for the temporary Modular Buildings portion of the work; and
WHEREAS, On December 18, 2023, the City Council received a full design development presentation from staff and Group 4 and accepted unanimously in Minute Order No. 1953 which allowed staff to begin the construction document phase of the design; and
WHEREAS, On January 16, 2024, the City Council received a Project budget update and funding proposals and strategies from staff to address the Project budget shortfall of $10,568,750 which were approved via Minute Order No. 1956; and

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2 1
8 3
WHEREAS, total funding in the amount of $55,432,578 is approved in the budget for the complete project of CIP 301-678; and
WHEREAS, additional project funding in the amount of $9,559,750 is identified in the 2024-2025 Preliminary Budget that will be considered for Final Budget by the City Council on June 3, 2024 and June 17, 2024; and
WHEREAS, based on the Engineer’s construction estimate of $54,000,000, additional funding will be requested to complete the project at the time of award; and WHEREAS, work is estimated to begin in September 2024.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does find and approve as follows:

1. The foregoing Recitals are true and incorporated herein as findings of this Resolution.

2. The plans and specifications for Project are approved herein prior to any actual construction work commencing on the Project.

3. The City Engineer, or their designee, is authorized to act on the City's behalf in approving any alterations or modifications of the plans and specifications approved by this Resolution.

4. The City Engineer is authorized to proceed with calling for the bids for the Project.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 3rd day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

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MINUTE ORDER
No. 1956

OFFICE OF THE CITY CLERK

FOSTER CITY, CALIFORNIA
Date: January 17, 2024
Attention: City Council/ EMID Board
Stefan Chatwin, City/ District Manager
Marlene Subhashini, Assistant City/ District Manager
Derek Schweigart, Parks and Recreation Director
City Council/ EMID Board of Directors Meeting Date: January 16, 2024 Subject: Recreation Center Rebuild Project ( CIP 301- 678) – Project Budget Update Motion by Councilmember Froomin, seconded by Councilmember Hindi, and carried unanimously, 5-0-0, IT WAS ORDERED to receive and accept the Project Budget Update for the Recreation Center Rebuild Project ( CIP 301- 678), and provide policy direction to:

1. Designate and appropriate the grant funds received from Gilead Foundation in the amount of $ 500, 000 to the project budget to help fund the Project’s LEED Silver Certification and the Project’s environmentally sustainability goals;

2. Proceed with Option 3, eliminate the Bocce Court Expansion project scope and budget from the Project ( CIP 301- 678) reducing the Project shortfall by 1,009, 000 and appropriate the funds from ( CIP 301- 655) to the RCRP/ Project further reducing the Project shortfall by an additional $ 895, 435;

3. Authorize the release of $ 5,000, 000 from the remaining Levee pro ject funds available in the Levee Protection Planning and Improvement Project ( CIP 327 - 657) and appropriate it to the Recreation Center Rebuild Project ( CIP 301- 678); DocuSign Envelope ID: 7A5A25E5- 551F- 4493- 8B0E- EF270F9971F9

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4. Authorize the appropriation of the new park impact fees which are anticipated from the new Gilead building at 331 Lakeside Drive in the amount of $ 594, 000 to the Project ( CIP 301- 678);

5. Withold from authorizing the deferral of the Sea Cloud Maintenance Shed project ( CIP 301- 714) which is partially funded this fiscal year ($ 300, 000) for design with construction planned in FY 2024- 2025 when the full funding is anticipated in the amount of $ 2,300, 000;

6. Authorize eliminating the East Hillsdale and Foster City Boulevard median refurbishment project and appropriate the funding in the amount of $ 500, 000 to the Project ( CIP 301- 678);

7. Authorize eliminating the Amphitheater Shade Structure project with the intent for it to coincide with the opening of the new Recreation Center and appropriate the amount of $ 1,000, 000 to the Project ( CIP 301- 678); and

8. Proceed with Option 1, take no action to use any funds from the Capital Asset Acquisition and Replacement Fund ( CAAR Fund 326).

CITY CLERK/ DISTRICT SECRETARY
DocuSign Envelope ID: 7A5A25E5- 551F- 4493- 8B0E- EF270F9971F9

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Prepared Date 5/15/2024 City of Foster City, CA
Accounts Payable Check Register

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Foster City City CouncilJune 3, 2024

Foster City City Council
June 3, 2024