Agenda packet — Foster City City Council, December 9, 2024

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

To Attend the Meeting in Person:

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

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

To Observe the Meeting via Teleconference/Video Conference:

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

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

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

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

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

AMENDED
AGENDA
Monday, December 09, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

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

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

5. RESOLUTIONS FOR ADOPTION

5.1. A Resolution of the City Council of the City of Foster City Declaring the Results of the General Municipal Election Held in the City of Foster City on Tuesday, November 5, 2024 and Such Other Matters as Provided by Law a) Action Adopt Resolution

6. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER JON FROOMIN

7. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER SAM HINDI

8. PRESENTATION TO OUTGOING MAYOR PATRICK SULLIVAN

9. ADJOURNMENT OF OUTGOING CITY COUNCIL/EMID BOARD OF

DIRECTORS

10. ROLL CALL OF NEW CITY COUNCIL/EMID BOARD OF DIRECTORS Councilmember/Director Stacy Jimenez, Councilmember/Director Art Kiesel, Councilmember/Directorelect Suzy Niederhofer, Councilmember/Directorelect Patrick Sullivan, and Councilmember/Directorelect Phoebe Venkat

11. OATHS OF OFFICE TO COUNCILMEMBERSELECT SUZY NIEDERHOFER, PATRICK SULLIVAN AND PHOEBE VENKAT

12. NEW BUSINESS

12.1. Reorganization of the City Council/EMID Board of Directors

12.1.1. Nominations and Election of Mayor/President

12.1.2. Nominations and Election of Vice Mayor/Vice President

12.1.3. City Clerk Gives Oaths of Office to Mayor/President and Vice Mayor/Vice President

13. CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND REQUESTS, AND COUNCIL LIAISON REPORTS
City/District Manager and Council/EMID Board Members report on their various assignments and liaison roles and Council/EMID Board requests for scheduling future items.

14. ADJOURNMENT
The public is invited to attend.

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

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

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

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

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

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

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

To Attend the Meeting in Person:

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

To Observe the Meeting via Teleconference/Video Conference:

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

AMENDED
AGENDA
Monday, December 09, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

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

5. RESOLUTIONS FOR ADOPTION

6. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER JON FROOMIN

7. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER SAM HINDI

8. PRESENTATION TO OUTGOING MAYOR PATRICK SULLIVAN

9. ADJOURNMENT OF OUTGOING CITY COUNCIL/EMID BOARD OF

DIRECTORS

11. OATHS OF OFFICE TO COUNCILMEMBERSELECT SUZY NIEDERHOFER, PATRICK SULLIVAN AND PHOEBE VENKAT

12. NEW BUSINESS

12.1. Reorganization of the City Council/EMID Board of Directors

12.1.1. Nominations and Election of Mayor/President

12.1.2. Nominations and Election of Vice Mayor/Vice President

12.1.3. City Clerk Gives Oaths of Office to Mayor/President and Vice Mayor/Vice President

14. ADJOURNMENT
The public is invited to attend.

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

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

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

To Attend the Meeting in Person:

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

To Observe the Meeting via Teleconference/Video Conference:

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

AMENDED
AGENDA
Monday, December 09, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

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

5. RESOLUTIONS FOR ADOPTION

6. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER JON FROOMIN

7. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER SAM HINDI

8. PRESENTATION TO OUTGOING MAYOR PATRICK SULLIVAN

9. ADJOURNMENT OF OUTGOING CITY COUNCIL/EMID BOARD OF

DIRECTORS

11. OATHS OF OFFICE TO COUNCILMEMBERSELECT SUZY NIEDERHOFER, PATRICK SULLIVAN AND PHOEBE VENKAT

12. NEW BUSINESS

12.1. Reorganization of the City Council/EMID Board of Directors

12.1.1. Nominations and Election of Mayor/President

12.1.2. Nominations and Election of Vice Mayor/Vice President

12.1.3. City Clerk Gives Oaths of Office to Mayor/President and Vice Mayor/Vice President

14. ADJOURNMENT
The public is invited to attend.

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

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

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

To Attend the Meeting in Person:

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

To Observe the Meeting via Teleconference/Video Conference:

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

AMENDED
AGENDA
Monday, December 09, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

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

5. RESOLUTIONS FOR ADOPTION

6. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER JON FROOMIN

7. PRESENTATION TO AND LEAVING OFFICE STATEMENT BY
COUNCILMEMBER SAM HINDI

8. PRESENTATION TO OUTGOING MAYOR PATRICK SULLIVAN

9. ADJOURNMENT OF OUTGOING CITY COUNCIL/EMID BOARD OF

DIRECTORS

11. OATHS OF OFFICE TO COUNCILMEMBERSELECT SUZY NIEDERHOFER, PATRICK SULLIVAN AND PHOEBE VENKAT

12. NEW BUSINESS

12.1. Reorganization of the City Council/EMID Board of Directors

12.1.1. Nominations and Election of Mayor/President

12.1.2. Nominations and Election of Vice Mayor/Vice President

12.1.3. City Clerk Gives Oaths of Office to Mayor/President and Vice Mayor/Vice President

14. ADJOURNMENT
The public is invited to attend.

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

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

4 RESOLUTION NO.____________

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

DECLARING THE RESULTS OF THE GENERAL MUNICIPAL ELECTION HELD IN THE CITY OF FOSTER CITY ON TUESDAY, NOVEMBER 5 , 2024 AND SUCH OTHER

MATTERS AS PROVIDED BY LAW

CITY OF FOSTER CITY

WHEREAS, a General Municipal Election of the City of Foster City was held in accordance with the laws of the State of California on Tuesday, November 5, 2024; and

WHEREAS, the election of candidates to the following seats : Three (3) Members of City Council elected for full terms of four years each were placed on the November 5, 2024 Official Ballot; and

WHEREAS, one local measure, Measure V, was placed on the November 5, 2024 Official Ballot for the City of Foster City; and

WHEREAS, notice of the election was duly and legally given, voting precincts were properly established, election officers appointed and election supplies furnished; and in all respects the election was held and conducted and the votes cast thereat received and canvassed, and the returns thereof made, determined and declared in the time, form and manner as required by the general laws of the State providing for and regulating consolidated general municipal elections in the City of Foster City; and

WHEREAS, the Chief Elections Officer & Assessor -County Clerk -Recorder, in accordance with all applicable laws, canvassed the returns of said elections and has certified the results as provided in the Statement of the Vote set forth in Exhibit A attached hereto and incorporated herein; and

WHEREAS, the City Council, as the governing board of said City, met on this date, for the purpose of accepting said canvass , declaring the results and installing the newly elected officers.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That there were 8 voting precincts established in said City established by the Board of Supervisors of the County of San Mateo for the holding of the General Municipal Election and designated "Precinct Nos. 22001 through 22036."

That on December 5, 2024, Mark Church, Chief Elections Officer & Assessor - County Clerk-Recorder, caused to be filed with the City Clerk of the City of Foster City, a

5.1 Attachment 1 - Resolution

5 certificate which includes the record of votes from the canvass of all ballots cast at said General Municipal Election.

That the whole total number of ballots cast was 14,478 in the City.

SECTION 2. That the names of persons voted for at the election for Member of the City Council were as follows:
a. Richa Awasthi
b. Shankar Kenkre
c. Suzy Niederhofer
d. Patrick J Sullivan
e. Phoebe Shin Venkat

That the measure voted upon at the election, Measure V, is as follows:

“To protect Foster City’s financial stability and maintain essential services including 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business license tax with varying the rates from $0.75 to $3.00 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?”

SECTION 3. That the number of votes given at each precinct to each person and for and against Measure V, and the total number of votes given in the City to each person and for and against Measure V were as listed in Exhibit A attached.

SECTION 4. That the City Council does declare and determine that Suzy Niederhofer was elected to the office of Member of the City Council for the full term of four (4) years, Patrick J Sullivan was elected to the office of Member of the City Council for the full term of four (4) years, and Phoebe Shin Venkat was elected to the office of Member of the City Council for the full term of four (4) years.

That as a result of the election, a majority of the voters voting on Measure V relating to increasing business license tax from $0.75 to $3.00 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes cast 9,831 ballots for the measure and 3,421 ballots against the measure.

SECTION 5. That the City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election, showing: (1) The whole number of ballots cast in the City; (2) The names of the persons voted for; (3) The measure voted upon; (4) For what office each person was voted for; (5) The number of votes given at each precinct to each person , and for and against each measure; and (6) the total number of votes given to each person, and for and against the measure.

5.1 Attachment 1 - Resolution

6 SECTION 6. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election; that the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk.

Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the special meeting held on the 9
th day of December, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

5.1 Attachment 1 - Resolution

7 5.1
Attachment 1 - Resolution

8 5.1
Attachment 1 - Resolution

9 5.1
Attachment 1 - Resolution

10 5.1
Attachment 1 - Resolution

11 5.1
Attachment 1 - Resolution

12 5.1
Attachment 1 - Resolution

13 ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR),

5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF THE FO STER CITY MUNICIPAL CODE TO UPDATE THE CITY’S BUSINESS LICENSE TAX

CITY OF FOSTER CITY

WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and

WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and

WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and

WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and

WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1,000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and

WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and

WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and

WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and

WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “ Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services ” and directed staff to research BLT methodologies and

5.1 Attachment 2 - Measure V Ordinance

14 consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and

WHEREAS, this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.  Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and

WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed amendments to the BLT to the voters of Foster City.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF FOSTER CITY DO ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 5.04.060 (Constitutional Apportionment) of Chapter 5.04 (General Provisions), Sections 5.08.050 (Gross Receipts), 5.08.080 (Solicitor), 5.08.090 (Specialty Contractor), and 5.08.100 (Sworn Statement) of Chapter 5.08 (Definitions), and Section 5.24.010 (Rates) of Chapter 5.24 (Gross Receipts Tax), within Section I (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) of the Foster City Municipal Code are hereby amended as set forth in Exhibit 1 which is attached hereto and incorporated herein by reference.

All other provisions of Chapters 5.04 through 5.40 within Section 1 (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) not amended by this Ordinance remain in full force and effect.

Section 2. Audits. Proceeds resulting from the BLT shall be deposited into the City’s General Fund and become subject to the same audit requirements as other General Fund revenues. Any auditor’s report shall include an accounting of the revenues received from the BLT and shall be presented to the City Council annually and made available for public review.

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

5.1 Attachment 2 - Measure V Ordinance

15 of the remaining portions of this Ordinance. The City Council hereby declares 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 unconstitutional.

Section 4 . Effective Date . This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Foster City voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the BLT shall be as specified in Chapters 5.04 through 5.40 w ithin Section I of Title 5 of the Foster City Municipal Code and as directed by the City Council.

PASSED AND ADOPTED by the voters of the City of Foster City this November 5, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024, election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December 9, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________

PATRICK SULLIVAN, MAYOR

ATTEST:

_____________________________

PRISCILLA SCHAUS, CITY CLERK

5.1 Attachment 2 - Measure V Ordinance

16 EXHIBIT 1
A. Section 5.04.060 of Chapter 5.04 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.04.060 Constitutional apportionment.

A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon the written approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article. Should the collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor; provided, that no additional license tax during any one

5.1 Attachment 2 - Measure V Ordinance

17 calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article.

B. Section 5.08.050 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:

5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A. Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C. Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D. Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F. Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them; G. That portion of the receipts of a business related to sales of goods or services to the city of Foster City;
H. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and

5.1 Attachment 2 - Measure V Ordinance

18 provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each;
I. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
J. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.”
C. Sections 5.08.080 and 5.08.090 of Chapter 5.08 in Title 5 of the Foster City Municipal Code are hereby deleted in their entirety:

D. Section 5.84.100 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby renumbered to be Section 5.08.080:
“5.08.080 Sworn statement.

As used in this article, “sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury”.

E. Section 5.24.000 of Chapter 5.24 in Title 5 of the Foster City Municipal Code is amended to read as follows:
“5.24.010 Rates.

For tax years beginning on or after January 1, 2025, every person who engages in business at a fixed place of business within the city shall pay a license tax at the following rates to the maximum tax payment amount set forth in Section 5.24.010 B. below:
• A minimum of $200 for gross receipts between $0 and $267,000 for General Contractors or a minimum of $100 for gross receipts between $0 and $133,500 for all other businesses
• 0.075% (75 cents per $1,000) for gross receipts between $133,500 and $4,400,000 • 0.088% (88 cents per $1,000) for gross receipts between $4,400,001 and $8,500,000 • 0.1% ($1 per $1,000) for gross receipts between $8,500,001 and $12,650,000 • 0.113% ($1.13 per $1,000) for gross receipts between $12,650,001 and $16,750,000 • 0.125% ($1.25 per $1,000) for gross receipts between $16,750,001 and $20,900,000 • 0.138% ($1.38 per $1,000) for gross receipts between $20,900,001 and $25,000,000 • 0.3% ($3.00 per $1,000) for gross receipts over $25,000,000 For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

5.1 Attachment 2 - Measure V Ordinance

19 These rates are subject to the following:

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contract
or
All Other
Business
es

January 1,
2025, and
thereafter
$200 $100 $100 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax Payment. The limit upon which the license tax shall be computed will be as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

2. Effective January 1, 2026, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.”

5.1 Attachment 2 - Measure V Ordinance

Foster City City CouncilDecember 9, 2024

Foster City City Council
December 9, 2024