CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF MARCH 23, 2026
MINUTES
CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Special Meeting of March 23, 2026 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), was called to order at 6: 30 p.m. in the Council Chambers, 620 Foster City Boulevard, Foster City, San Mateo County, California, by Mayor/President Art Kiesel.
ROLL CALL
The Communications Director/City Clerk/District Secretary called the roll:
PRESENT:
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Phoebe Venkat, and Mayor/President Art Kiesel.
ABSENT: Councilmember/Director Patrick Sullivan.
STAFF PRESENT:
Stefan Chatwin, City/District Manager ; Benjamin Stock , City Attorney/District Legal Counsel ; Marlene Subhashini, Assistant City/District Manager; Nate Cruz, Finance Director; Andrew Brozyna, Public Works Director; Derek Schweigart, Parks and Recreation Director; Sofia Mangalam, Community Development Director; Cory Call, Police Chief; Eric Mackintosh, Deputy Fire Chief; Kevin Foiles, Emergency Services Manager; Diane Pitman, Administrative Services Director; Waqas Hassan, Assistant Finance Director; Kitty Dandan, Financial Services Manager; Kay Khin, Accountant II; Chuck Venook, Chief Building Official; Rob Lasky, IT Manager ; Aaron Sui, Senior Systems Analyst; Laura Galli, Engineering Manager; Yelena Capello, Management Analyst; Zaheed Danish, Public Works Maintenance Manager; Michael Miller, Fleet Supervisor; Shuli Chen , Video Technician; and Priscilla Schaus , Communications Director/City Clerk/District Secretary.
City Attorney/District Legal Counsel Stock announced p ursuant to Government Code section 54954.2(b)(2), the City needed to add an agenda item for an emergency item that arose from the cybersecurity incident necessitating a C losed Session item under Government Code section 54957, and the need for this C losed Session came to light based on facts and circumstances learned about after publishing the agenda.
Motion by Councilmember Jimenez, seconded by Vice Mayor Niederhofer, and carried, 4-0-0, Councilmember Sullivan absent, to add this agenda item based on the facts described above to the agenda.
PUBLIC
Yiming Luo addressed the City Council in person.
RESOLUTION FOR ADOPTION
RATIFY THE PROCLAMATION OF EXISTENCE OF A LOCAL EMERGENCY BY THE
CITY MANAGER OF THE CITY OF FOSTER CITY RELATED TO RANSOMWARE ATTACK. CITY RESOLUTION NO. 2026-025.
City Attorney Stock presented the staff report.
Discussion ensued.
Motion by Vice Mayor Niederhofer, seconded by Councilmember Venkat, and carried, 4- 0-0, Councilmember Sullivan absent, adopting City Resolution No. 2026- 025, “ 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 Ransomware Attack.”
STUDY SESSION
Mayor/President Kiesel recessed the meeting into Study Session for the following:
1. Budget Overview and Schedule for FY 2026-27 and FY 2027-28;
2. Five Year Capital Improvement Program – FY 2026-2027 to FY 2030-2031;
3. Fifteen Year General Fund Capital Improvement Projects Program and Funding Plan for Preparation of the City’s FY 2026-2027 and 2027-2028 Budget and Five- Year Financial Plan;
4. Fifteen Year Water and Wastewater Funds Capital Improvement Projects Program and Funding Plan for Preparation of the District’s FY 2026- 2027 and 2027- 2028 Budget and Five-Year Financial Plan;
5. Vehicle Replacement Fund Overview and Internal Service Fund Allocations for FY 2026-2027 and FY 2027-2028;
6. Building Maintenance Fund Budget and Internal Service Charges for FY 2026- 2027 and 2027-2028;
7. Equipment Replacement Fund Budget and Internal Services Changes for FY 2026-2027 and FY 2027-2028;
8. Information Technology Internal Service Fund Budget for FY 2026- 2027 and FY 2027-2028;
9. Internal Service Funds (Administrative) for FY 2026- 27 and FY2027 -28:
Compensated Absences, PEMHCA, Longevity, Workers Compensation, and Self- Insurance; and
10. Updates to Master Fees and Service Charges Schedule for FY 2026- 27 and FY 2027-28.
By consensus of the City Council/ EMID Board of Directors, and carried 4-0-0, Councilmember/Director Sullivan absent, adopting Minute Order No. 2070 and confirming the following assumptions and providing policy direction in the preparation of the FY 2026- 2027 and FY 2027-2028 Biennial Budget and Five-Year Financial Plan:
1. Proceed with the proposed Five- Year Capital Improvement Program – FY 2026- 2027 to FY 2030-2031 and authorize staff to include the program in the FY 2026- 2027 and FY 2027- 2028 budget;
2. Proceed with the proposed Fifteen -Year General Fund Capital Improvement Projects Program and its funding plan that includes annual transfers starting at $5.65 million from the General Fund to the City CIP Fund for the preparation of the City’s Fiscal Year 2026-2027 and 2027-2028 budget and 5-year financial plan;
3. Proceed with the Fifteen-Year Water and Wastewater Funds Capital Improvement Projects Program and its funding plan that includes annual transfers to the Water CIP Fund of $2.6 million in years 1- 3, followed by $1.8 million in year 4, then leveling off at $1.5 million for the remainder of the 15- year plan, and annual transfers to the Wastewater CIP Fund of $9.8 million in year 1, then $3.6 million for the next 5 years, and levelling off at $2.5 million for the remainder of the 15- year plan for the preparation of the District’s Fiscal Year 2026- 2027 and 2027- 2028 budget and 5-year financial plan;
4. Proceed with preparing the Vehicle Replacement Internal Service Fund budget for FY 2026-2027 and FY 2027-2028 based on the recommendations and allocations contained in the staff report;
5. Proceed with preparing the Building Maintenance Internal Service Fund Budget for Fiscal Years 2026- 2027 and 2027- 2028 based on the recommendations and allocations contained in the staff report;
6. Proceed with preparing the Equipment Replacement Fund budget for FY 2026- 2027 and FY 2027-2028 based on the recommendations and allocations contained in the staff report;
7. Proceed with preparing the Information Technology Fund budget for FY 2026-2027 and FY 2027- 2028 based on the recommendations and allocations contained in the staff report;
8. Proceed with the reserve levels policy and funding methodologies for all Internal Services Funds (ISFs) for the preparation of the FY 2026- 27 and FY 2027- 28 budget. Proceed with providing an assessment holiday in FY 2026 -27 and FY 2027-28 due to high reserve levels for the Longevity Benefits and Public Employees Medical and Hospital Care Act (PEMHCA) ISFs; and
9. Proceed with adopting the recommended changes and updates to the Master Fees and Service Charges Schedule for the FY 2026-27 and FY 2027-28 budget.
Meeting recessed into Study Session at 6:36 p.m. and reconvened at 8:28 p.m.
CLOSED SESSION
Mayor/President Kiesel recessed the meeting into Closed Session for an emergency item that arose from the cybersecurity incident under Government Code section 54957.
Meeting recessed into Closed Session at 8:28 p.m. and reconvened at 9:10 p.m.
City Attorney Stock reported that no action was taken in Closed Session.
ADJOURNMENT
Hearing no objection from the City Council/ EMID Board, Mayor/President Kiesel adjourned the meeting. Meeting adjourned at 9:10 p.m.