CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF MARCH 24, 2025
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The duly called and noticed Special Meeting of the City Council of the City of Foster City sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID) of March 24, 202 5 was called to order at 6:30 p.m. by Mayor/President Jimenez.
ROLL CALL
The Deputy City Clerk called the roll:
PRESENT:
Councilmembers/ex officio EMID Directors Art Kiesel, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Stacy Jimenez.
ABSENT: None.
STAFF PRESENT:
Stefan Chatwin, City/District Manager; Benjamin Stock, City Attorney/District Legal Counsel ; Marlene Subhashini, Assistant City/District Manager ; Cory Call, Police Chief; Sofia Mangalam, Community Development Director ; Andrew Brozyna, Public Works Director; Nate Cruz, Finance Director; Derek Schweigart, Parks and Recreation Director; Rob Lasky, IT Manager; Dawud Brewer, Human Resources Manager; Yelena Capello, Management Analyst ; Kurt Zander, Building and Vehicles Maintenance Manager; ‘Andra Lorenz, Principal Management Analyst; Francine Magno, Senior Civil Engineer; Ryan Marquez, Senior Civil Engineer; Justin Lai, Senior Civil Engineer; Zaheed Danish, Public Works Superintendent; Maricar Dupaya , Principal Management Analyst; Chuck Venook, Chief Building Official; Shuli Chen, Video Technician; and Katherine Estrada, Deputy City Clerk.
STUDY SESSION
Mayor/President Jimenez recessed the meeting into Study Session for the following:
1. Five Year Capital Improvement Program FY 2025-2026 to FY 2029-2030;
2. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for the Preparation of the City’s Fiscal Year 2025-2026 Budget and Five-Year Financial Plan;
3. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for the Preparation of the District’s Fiscal Year 2025- 2026 Budget and Five-Year Financial Plan;
4. Review of Projected Water Rates for FY 2025- 2026 to FY 2029- 2030 and Policy Direction for Rate Notification Under Proposition 218 and AB 2257;
5. Review of Projected Wastewater Rates for FY 2025- 2026 to FY 2029- 2030 and Policy Direction for Rate Notification Under Proposition 218 and AB 2257;
6. Updates To Master Fees and Service Charges Schedule for FY 2025-2026;
7. Internal Service Funds Summary;
8. Equipment Replacement Fund and Internal Service Fund Allocations for FY 2025- 2026;
9. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 2025-2026;
10. Building Maintenance Fund Budget and Internal Service Charges for FY 2025- 2026;
11. Longevity Recognition Benefits Plan and Public Employees' Medical and Hospital Care Act (PEMHCA) Benefits Plan Internal Service Funds;
12. Compensated Absences Internal Service Fund;
13. Self-Insurance Fund Budget for FY 2025-2026; and
14. Information Technology Internal Service Fund Budget for FY 2025-2026.
By consensus of the City Council /EMID Board , direction was given regarding the preparation of the FY 2025-2026 Annual Budget for the following:
1. Proceed with the proposed Five- Year Capital Improvement Program – FY 2025- 2026 to FY 2029-2030 and authorize staff to include the program in the FY 2024- 2025 budget;
2. Proceed with the proposed Fifteen Year General Fund CIP and Funding Plan that includes $5 million of annual transfers from the General Fund to the City Capital Fund for FY 2025-2026 through FY 2031-2032;
3. Proceed with the Fifteen- Year Water and Wastewater Funds CIP and Funding Plan that includes annual transfers from the Water Operating Fund to the Water CIP Fund of $2.6 million in years 1 and 2, followed by $2.5 million in years 3 and 4, $1.75 million in year 5, then leveling off at $1.5 million for the remaining 10 years of the 15-year plan and annual transfers from the Wastewater CIP Fund of $16.0 million for in year 1, $3.5 million annually for six years and leveling off at $2.5 million for the remaining 8 years of the 15-year CIP Plan for the preparation of the Enterprise Funds’ Fiscal Year 2025-2026 budget and Five-Year Financial Plan as presented;
4. Proceed with the water rate adoption based on the Draft Water Rate Study Update Results Memo dated March 1 9, 202 5 prepared by Bartle Wells Associates.
Approve the proposed Rate Setting Procedures. Proceed with the distribution of public noticing to all ratepayers as required by Proposition 218 and AB 2257 for a Public Hearing to be held on June 2, 2025, regarding Water Rates for FY 2025- 2026 to FY 2029-2030;
5. Proceed with the wastewater rates based on the Draft Wastewater Rate Study Update Results Memo dated March 11, 2025 prepared by Bartle Wells Associates (BWA). Approve the proposed Rate Setting Procedures. Proceed with the distribution of public noticing to all rate payers under the requirements of Proposition 218 and AB 2257 for a public hearing to be held on June 2, 2025, regarding Wastewater Rates for FY 2025-2026 to FY 2029-2030;
6. Proceed with adopting the recommended changes and updates to the Master Fees and Service Charges Schedule for the FY 2025-2026 budget;
7. Proceed with the reserve levels policy and funding methodologies for all Internal Services Funds for the preparation of the FY 2025-2026 budget;
8. Proceed with preparing the Equipment Replacement Fund budget for FY 2025- 2026 based on the recommendations and allocations contained in the staff report and removing the replacement for the Council Chambers dais chairs;
9. Proceed with preparing the Vehicle Replacement Internal Service Fund budget for FY 2025-26 based on the recommendations and allocations contained in the staff report;
10. Proceed with preparing the Building Maintenance Internal Service Fund budget for FY 2025-2026 based on the recommendations and allocations contained in the staff report;
11. Proceed with preparing the Longevity Recognition Benefits Plan and Public Employees’ Medical and Hospital Care Act (PEMHCA) Benefits Plan based on the recommendations and allocations contained in the staff report;
12. Proceed with increasing the current rate of 2.11% to 2.33% in FY 2025- 2026 for the Compensated Absence Internal Service Fund (CA ISF) to maintain a full reserve balance through FY 2025- 2026. Proceed with providing an assessment holiday in FY 2025-2026;
13. Proceed with preparing the Self Insurance Fund budget based on the recommendations and allocations contained in the staff report; and
14. Proceed with preparing the Information Technology Fund budget based on the recommendations and allocations contained in the staff report.
Meeting recessed into study session at 6:34 p.m. and reconvened at 8:57 p.m.
ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Jimenez adjourned the meeting. Meeting adjourned at 8:57 p.m.