4932-6397-0443 v3 1
AGREEMENT
This Agreement (“Agreement”) is entered into as of this __ day of March, 2026 (“Effective Date”) by and between the City of San Mateo (“San Mateo”) and the City of Foster City/Estero Municipal Improvement District (“Foster City”), referred to herein collectively as the “Parties” and individually as a “Party.”
RECITALS
A. In 2023, San Mateo began using its Sewer Enterprise reserve funds to front Foster City’s share of WWTP construction costs while the Parties waited for an additional source of funds to become available under the State Revolving Fund (“SRF”). It was thought that SRF funds would become quickly available, but it took approximately two years.
B. San Mateo fronted approximately $40.97 million in cash to pay for Foster City’s share of construction costs. Foster City repaid these funds, but has not yet reimbursed San Mateo for the foregone interest which San Mateo would have otherwise earned on these payments.
C. In the interests of compromise, the Parties have agreed that Foster City shall repay San Mateo for foregone interest on a portion of the aforementioned payments in the amount of $148,141.70.
WHEREFORE, for valuable consideration, including the obligations and terms as set forth below, the Parties agree as follows:
1. The foregoing recitals are incorporated herein by reference and shall constitute a part of this Agreement.
2. Foster City agrees to pay San Mateo in the amount of One Hundred Forty-Eight Thousand One Hundred and Forty One Dollars and Seventy Cents ($148,141.70) within thirty (30) days of the Effective Date, which the Parties agree shall fully and finally resolve any claim San Mateo has regarding interest owed related to the matter referenced in the recitals.
3. This Agreement contains the entire agreement and understanding between the Parties concerning the subject matter herein and supersedes and replaces any prior negotiations and agreements between the Parties, whether written or oral.
4. This Agreement, and the documents referred to herein, are governed by, and construed and interpreted in accordance with, the laws of the State of California.
5. This Agreement may be executed in any number of counterparts, each of which may be deemed an original, and all of which together constitute a single instrument, notwithstanding that all the Parties are not signatories to the original or same counterpart.
Photocopies or facsimiles constitute good evidence of such execution. 4932-6397-0443 v3 2
6. Upon execution by all Parties, this Agreement is effective as of the date first above written.
7. Each Party shall bear their own costs and attorneys' fees.
8. Each person executing this Agreement on behalf of a Party represents and warrants that such person is duly and validly authorized to do so on behalf of the entity it purports to bind and such Party has full right and authority and has obtained all consents and approvals and taken all actions necessary to enter into this Agreement, perform all of its obligations hereunder, and consummate all transactions contemplated under this Agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF SAN MATEO CITY OF FOSTER CITY
Alex Khojikian
City Manager
Stefan Chatwin
City Manager
APPROVED AS TO FORM APPROVED AS TO FORM
Prasanna W. Rasiah
City Attorney
Benjamin L. Stock,
City Attorney