Agenda packet, regular meeting — Foster City City Council, April 20, 2026 (part 1 of 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:

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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

Information may be received, placed on a future agenda, or referred to the appropriate City staff. FCMC 2.08.240 Addressing the Council. "...Each person desiring to address the Council shall step up to the public rostrum after being recognized to speak by the presiding officer, shall state his/her name and address for the record, state the subject he/she wishes to discuss, state who he/she is representing if he/she represents an organization or other persons and, unless further time is granted by majority vote of the Council, shall limit his/her remarks to three minutes. The City Council may vary the time limit for any speaker, if it deems this necessary." Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

6. CITY/EMID CONSENT CALENDAR
All matters listed under Consent Calendar are considered to be routine by the City Council/EMID Board of Directors and will be enacted by one motion unless removed by a member of the Council/Board, staff, or public. There will be no separate discussion on these items unless a citizen or a Council/Board member so requests.

This section includes minutes, ordinances for adoption, resolutions for adoption, and other business as needed. If discussion is required, that item will be removed from the Consent Calendar and will be considered separately after approval of the remaining items on the Consent Calendar. Vote may be by roll call.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

6.5. A Resolution of the City Council of the City of Foster City Authorizing Award of an Agreement with Moffatt & Nichol in the Amount of $130,007 for Professional Engineering Services for the Lagoon Dredge Survey, Approval of an Agreement Contingency in the Amount of $20,000, Authorizing the Mayor to execute the Agreement, and Finding the Project Exempt From CEQA Under Section 15306 Information Collection
a) Staff Report
b) Adopt Resolution

6.6. A Resolution of the City Council of the City of Foster City Authorizing An Appropriation in the Amount of $21,000 From the General Plan Maintenance Fund (Fund 128) to Account 12808384194251; Authorizing Contract Amendment No. Three (3) to the Agreement With Fehr and Peers in the Amount of $24,278 for the Foster City Bicycle and Pedestrian Master Plan; Authorizing the Mayor to execute Amendment No. 3; and Finding Project Exempt From Review Under the California Environmental Quality Act (CEQA) Pursuant to Public Resources Code Section 21000
a) Staff Report
b) Adopt Resolution

6.7. a) A Resolution of the City Council of the City of Foster City Revising the Building/Fleet Maintenance Superintendent Job Description; and b) A Resolution of the Board of Directors of the Estero Municipal Improvement District Revising the Building/Fleet Maintenance Superintendent Job Description
c) Staff Report
d) Adopt Resolutions

6.8. A Resolution of the Board of Directors of the Estero Municipal Improvement District Approving the Plans and Specifications, Authorizing the Call for Bids for Phase I of the Emergency Generator Replacement Project (CIP 455705); And Finding the Project Exempt From CEQA Under Section 15301(B) – Existing Facilities
a) Staff Report
b) Adopt Resolution

7. PUBLIC HEARINGS

7.1. A Public Hearing to Hear and Consider Comments Regarding Revisions to the City/District Master Fees and Service Charges Schedule for FY 2026 2027 and FY 20272028 (not including Parks and Recreation Fees) a) Staff Report
b) Open Public Hearing
c) Receive Public Testimony
d) Close Public Hearing
e) Action – A Resolution of the City Council of the City of Foster City Amending the Master Fees and Service Charges Schedule for FY 2026 2027 and FY 20272028
f) Action A Resolution of the Board of Directors of the Estero Municipal Improvement District Amending the Master Fees and Service Charges Schedule for FY 20262027 and FY 20272028

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

9.1. A Resolution of the City Council of the City of Foster City’s Commitment to Enforcement of State Law and City Policies in Response to Federal Immigration Enforcement Actions That Do Not Comply With Those Laws and Policies
a) Staff Report
b) Action – Adopt Resolution

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

11. 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.

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

7. PUBLIC HEARINGS

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

7. PUBLIC HEARINGS

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

7. PUBLIC HEARINGS

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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 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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

7. PUBLIC HEARINGS

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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

5 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.

AGENDA
Monday, April 20, 2026 6:30 PM
REGULAR MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel

4. SPECIAL PRESENTATIONS

4.1. A Proclamation Recognizing April 2026 as Parkinson’s Awareness Month

4.2. A Proclamation Declaring the Week of April 1218, 2026 as “National Public Safety Telecommunicators Week”

4.3. A Proclamation Declaring the Week of April 1925, 2026 as “Volunteer Appreciation Week”

5. PUBLIC
Government Code Section 54954.2 E (3) precludes the City Council from discussing or acting upon any topic initially presented during the “Public” portion of the agenda.

6.1. City and Planning Commission Joint Special Meeting Minutes of February 24, 2026

6.2. City/EMID Regular Meeting Minutes of March 16, 2026

6.3. City/EMID Regular Meeting Minutes of April 6, 2026

6.4. City/EMID Special Meeting Minutes of April 13, 2026

7. PUBLIC HEARINGS

8. REPORTS

8.1. Report on Real Estate Market Analysis
a) Staff Report
b) Action – By Minute Order, Receive and Accept Report and Provide Policy Direction

8.2. Report Confirming Previously Adopted Wastewater Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

8.3. Report Confirming Previously Adopted Water Rates Effective July 1, 2025, With Annual Adjustments Each July 1 Through July 1, 2029 a) Information Item Only
b) No Action Required

9. RESOLUTIONS FOR ADOPTION

10. COMMUNICATIONS

10.1. City/District Warrants of Demands were Processed and Issued on February 26, 2026, and ACH were processed on March 5, 2026
a) Information Item Only
b) No Action Required

12. CLOSED SESSION

12.1. Conference with Labor Negotiators
Agency designated representative: (Mayor)
Unrepresented employee: (City Manager)

12.2. Report Out of Closed Session

13. 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

6 4.1

4.1 Proclamation

7 4.2

4.2 Proclamation

8 4.3

4.3 Proclamation

9 CITY OF FOSTER CITY/

FOSTER CITY PLANNING COMMISSION
SPECIAL MEETING OF FEBRUARY 24, 2026

MINUTES

CALL TO ORDER OF CITY COUNCIL AND FOSTER CITY PLANNING COMMISSION The duly called and noticed Special Meeting of the City Council and Planning Commission of the City of Foster City, sitting as said Council and Planning Commission, 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 Art Kiesel.

This meeting was held as a hybrid meeting.

ROLL CALL
The Communications Director/City Clerk called the roll:

PRESENT: Councilmembers Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor Art Kiesel.

Planning Commissioners Nicolas Haddad, Ravi Jagtiani, Shankar Kenre, Doug Stoveland, and Chair Robert Pedro.

ABSENT: Councilmember Stacy Jimenez
STAFF PRESENT: Stefan Chatwin, City Manager; Denise Bazzano, Assistant City Attorney; Eric Phillips, Special Legal Counsel; Marlene Subhashini, Assistant City; Sofia Mangalam, Community Development Director; Cory Call, Police Chief; Eric Mackintonsh, Deputy Fire Chief; Rob Lasky, IT Manager; Nori Jabba, Housing and Sustainability Manager; Thai-Chau Le, Planning Manager; Shuli Chen, Video Technician; and Priscilla Schaus, Communications Director/City Clerk.

PUBLIC
Yiming Luo addressed the City Council and Planning Commission via teleconference.

NEW BUSINESS
CHANGES TO BROWN ACT (SENATE BILL 707). NO ACTION TAKEN.

Assistant City Attorney Bazzano gave a presentation on Changes to the Brown Act (Senate Bill 707).

6.1 6.1 Minutes

10 No action was taken.

UPDATE ON NEW LAND/USE PLANNING LAWS EFFECTIVE 2026 AND PROPOSED BILLS UNDER CONSIDERATION. NO ACTION TAKEN.

Special Legal Counsel Phillips gave a presentation on New Land Use/Planning Laws effective 2026 and proposed bills under consideration.

No action was taken.

ADJOURNMENT
Hearing no objection from the City Council and Planning Commission, Mayor Kiesel adjourned the meeting. Meeting adjourned at 8:43 p.m.

6.1 6.1 Minutes

11 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
REGULAR MEETING OF MARCH 16, 2026

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Regular Meeting of March 16, 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.

This meeting was held as a hybrid meeting.

ROLL CALL
The Communications Director/City Clerk/District Secretary called the roll:

PRESENT: Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel.

ABSENT: None.

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; Rob Lasky, IT Manager; Laura Galli, Engineering Manager; Francine Magno, Senior Civil Engineer; Shuli Chen, Video Technician; and Priscilla Schaus, Communications Director/City Clerk/District Secretary.

PUBLIC
Siddharth Gurjar addressed the City Council via email and teleconference regarding code enforcement.

Marjory Ruiz Hidalgo, representing PG&E, addressed the City Council in person regarding the PG&E Report It mobile app.

6.2 6.3 Minutes

12 CONSENT CALENDAR
Motion by Vice Mayor/Vice President Niederhofer, seconded by Councilmember/Director Sullivan, and carried unanimously, 5-0-0, approving the following items on the City/District Consent Calendar:

City/EMID Consent Calendar

1. City/EMID Regular Meeting Minutes of March 2, 2026;

2. City Resolution No. 2026-018, “A Resolution of the City Council of the City of Foster City Supporting the Wyland Foundation's 2026 Mayor's Challenge for Water Conservation;”

3. City Resolution No. 2026-019. “A Resolution of the City Council of the City of Foster City Authorizing Procurement of Office Furniture for the Foster City Community Center Rebuild Project (CIP 301-678) in the amount of $121,818 from Insidesource;”

4. City Resolution No. 2026-020, “A Resolution of the City Council of the City of Foster City Approving Authorizing the City Manager to Execute an Agreement to Reimburse the City of San Mateo for Foregone Interest Earnings in the Amount of $148,141.70 relating to the Wastewater Treatment Plant Construction Project”; and

5. EMID Resolution No. 3838, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Approving Authorizing the District Manager to Execute an Agreement to Reimburse the City of San Mateo for Foregone Interest Earnings in the Amount of $148,141.70 relating to the Wastewater Treatment Plant Construction Project.”

ITEMS REMOVED FROM CONSENT CALENDAR
APPROPRIATION OF FUNDING IN THE AMOUNT OF $121,000 FROM THE GENERAL PLAN MAINTENANCE FUND (FUND 128) TO ACCOUNT NO. 128-0838-419-42-51 FOR THE DEVELOPMENT OF THE BICYCLE AND PEDESTRIAN MASTER PLAN. CITY RESOLUTION NO. 2026-021.

Without objection from the City Council, Mayor Kiesel removed this item from the consent calendar.

Yiming Luo addressed the City Council in person.

Discussion ensued.

Motion by Vice Mayor Niederhofer, seconded by Councilmember Venkat, and carried unanimously, 5-0-0, adopting City Resolution No. 2026-021, “A Resolution of the City Council of the City of Foster Authorizing the Appropriation of Funding in the Amount of $121,000 from the General Plan Maintenance Fund (Fund 128) to Account No. 128-0838- 419-42-51 for the Development of the Bicycle and Pedestrian Master Plan.”

6.2 6.3 Minutes

13 AWARD OF CONSTRUCTION CONTRACT TO QA CONSTRUCTORS, INC. FOR THE CONSTRUCTION OF CIP 301-726 STREET REHABILITATION PROJECT (2025-2026) IN THE AMOUNT OF $1,285,113.40 WITH A CONTINGENCY IN THE AMOUNT OF $128,000; THE EXECUTION OF A TASK ORDER WITH CSG CONSULTANTS FOR

CONSTRUCTION MANAGEMENT, INSPECTION SERVICES, AND MATERIAL TESTING SERVICES IN THE AMOUNT OF $174,069 WITH A CONTINGENCY IN THE AMOUNT OF $17,500; AND FINDING THE APPROVAL EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES 15301(C)—EXISTING FACILITIES. CITY RESOLUTION NO. 2026-022.

Without objection from the City Council, Mayor Kiesel removed this item from the consent calendar.

The following people addressed the City Council via email:

1. Evan Adams; and

2. Yiming Luo.

The following people addressed the City Council in person:

1. Ganna Kolesnir; and

2. Yiming Luo.

Discussion ensued.

Motion by Councilmember Jimenez, seconded by Vice Mayor Niederhofer, and carried, 3-1-1, Councilmember Sullivan abstained and Councilmember Venkat voted “no,” adopting City Resolution 2026-022, “A Resolution of the City Council of the City of Foster City Authorizing the Award of Construction Contract to QA Constructors, Inc. for the Construction of CIP 301-726 Street Rehabilitation Project (2025-2026) in the Amount of $1,285,113.40 with a Contingency in the Amount of $128,000; the Execution of a Task Order with CSG Consultants for Construction Management, Inspection Services, and Material Testing Services in the Amount of $174,069 with a Contingency in the Amount of $17,500; and Finding the Approval Exempt From the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines 15301(C)—Existing Facilities.”

REPORTS
FISCAL YEAR 2025-2026 SECOND QUARTER FINANCIAL UPDATE. MINUTE ORDER NO. 2067.

Finance Director Cruz presented the staff report.

Discussion ensued.

Motion by Councilmember/Director Venkat, seconded by Vice Mayor/Vice President Niederhofer, and carried unanimously, 5-0-0, adopting Minute Order No. 2067, receiving and accepting the Fiscal Year 2025-2026 Second Quarter Financial Update.

6.2 6.3 Minutes

14 WASTEWATER TREATMENT PLANT MASTER PLAN IMPROVEMENTS PROJECT (CIP 455-652) – CLEAN WATER PROGRAM – UPDATE FOR QUARTER 4 – OCTOBER THROUGH DECEMBER 2025. MINUTE ORDER NO. 2068.

Public Works Director Brozyna and David Umezaki, representing EKI Environment & Water, Inc., presented the report.

Discussion ensued.

Motion by Director Jimenez, seconded by Vice President Niederhofer, and carried unanimously, 5-0-0, adopting Minute Order No. 2068, receiving and accepting the Quarter 4 progress update on the Wastewater Treatment Plant Master Plan Improvements Project (CIP 455-652) – Clean Water Program (CWP) – October through December 2025.

COMMUNITY CENTER REBUILD PROJECT (CIP 301-678) GENERAL UPDATE.

MINUTE ORDER NO. 2069.

Parks and Recreation Director Schweigart presented the staff report.

Discussion ensued.

Motion by Vice Mayor Niederhofer, seconded by Councilmember Jimenez, and carried unanimously, 5-0-0, adopting Minute Order No. 2069, receiving and accepting the update on the Community Center Rebuild Project (CIP 301-678).

RESOLUTIONS FOR ADOPTIONS
SUPPLEMENTAL APPROPRIATION OF $20 MILLION FOR AN ADDITIONAL DISCRETIONARY PAYMENT TO CALPERS.

Finance Director Cruz presented the staff report.

Discussion ensued.

By Consensus of the City Council, it was directed to staff to proceed with a supplemental appropriation of $15 million for the Additional Discretionary Payment to CalPERS for the partial paydown of the City’s Unfunded Accrued Liability, and to return with an updated resolution to be approved at the next City Council regular meeting.

FOSTER CITY COMMUNITY CENTER DONOR RECOGNITION WALL DESIGN AND TIERED FUNDRAISING FRAMEWORK AND AUTHORIZING A $40,000
APPROPRIATION FROM THE CAPITAL IMPROVEMENT FUND (FUND 301) RESERVES TO THE COMMUNITY CENTER REBUILD PROJECT (CIP 301-678). CITY RESOLUTION NO. 2026-023.

6.2 6.3 Minutes

15 Parks and Recreation Director Schweigart presented the staff report.

Discussion ensued.

Motion by Councilmember Venkat, seconded by Councilmember Sullivan, and carried unanimously, 5-0-0, adopting City Resolution No. 2026-023, “A Resolution of the City Council of the City of Foster City Approving the Foster City Community Center Donor Recognition Wall Design and Tiered Fundraising Framework and Authorizing a $40,000 Appropriation from the Capital Improvement Fund (Fund 301) Reserves to the Community Center Rebuild Project (CIP 301-678).”

COMMUNICATIONS
CITY/DISTRICT WARRANT OF DEMANDS. NO ACTION TAKEN.

City/District Warrants of Demands were Processed and Issued on February 12, 2026, and ACH were processed on February 5, 2026.

CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND

REQUESTS, AND COUNCIL LIAISON REPORTS
Councilmember/Director Sullivan thanked Police Chief Call for the opportunity to tour the Police Department. On March 14, he attended the 2026 Foster City Sports Hall of Fame Induction Ceremony at Sea Cloud Park.

Councilmember/Director Venkat also thanked Police Chief Call for the tour of the Police Department. On March 7, she attended YAC Attack, a leadership conference of local Youth Advisory Councils, at the Los Altos Community Center. She stated she was unable to attend the Citizens Sustainability Advisory Committee meeting on March 11 but announced that the committee decided to table at the April 22nd Off the Grid event rather than host an Earth Day Fair for 2026. She stated that she was also unable to attend the San Mateo-Foster City School District Board meeting on March 12. She requested to agendize a discussion for a resolution banning federal immigration authorities from entering City properties, facilities and parking lots, and steps to take if City policies or State laws are broken, and she received support from Councilmember/Director Jimenez and Councilmember/Director Sullivan.

Councilmember/Director Jimenez shared that as Vice Chair of the City/County Association of Governments of San Mateo County (C/CAG), she met with Congressman Mullin regarding appropriation requests on March 12. She stated she attended the San Mateo County Express Lanes Joint Powers Authority (SMCEL JPA) Board meeting on March 13, and the San Mateo County Child Care Partnership Council (CCPC) Board meeting on March 16.

Vice Mayor/Vice President Niederhofer thanked Police Chief Call for the tour of the Police Department. She stated she met with representatives from Kosmont Companies on

6.2 6.3 Minutes

16 March 4. On March 10, she attended the Foster City Police Department Badge Pinning Ceremony.

Mayor/President Kiesel stated he attended the League of California Cities Mayors and Council Members Roundtable Discussion on March 11. On March 12, he hosted a Meet the Mayor visit for students from Kids Connection School and attended the C/CAG Legislative Committee meeting as the alternate for Councilmember/Director Jimenez.

ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Kiesel adjourned the meeting. Meeting adjourned at 9:02 p.m.

6.2 6.3 Minutes

17 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
REGULAR MEETING OF APRIL 6, 2026

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Regular Meeting of April 6, 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 Deputy City Clerk/District Secretary called the roll:

PRESENT: Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel.

ABSENT: None.

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; Sofia Mangalam, Community Development Director; Diane Pitman, Administrative Services Director; Michael Miller, Fleet Supervisor; Shuli Chen, Video Technician; and Katherine Estrada, Deputy City Clerk/District Secretary.

SPECIAL PRESENTATIONS
PRESENTATION BY PENINSULA CLEAN ENERGY DBA WESTLIGHT ENERGY.

Marc Hershman, Director of Government Affairs representing Peninsula Clean Energy, presented an informational update on Peninsula Clean Energy dba WestLight Energy.

PRESENTATION BY SAMTRANS REGARDING SB 63 LOCAL INVESTMENT PLAN.

Michaela Petrik, Government & Community Affairs Officer representing SamTrans, gave a presentation regarding SB 63 Local Investment Plan.

6.3 6.4 Minutes

18 PUBLIC
Tom Ockendeck addressed the City Council in person regarding safety signage on the Levee Pedway.

CONSENT CALENDAR
Motion by Councilmember/Director Jimenez, seconded by Vice Mayor/Vice President Niederhofer, and carried unanimously, 5-0-0, approving the following items on the City/District Consent Calendar:

City/EMID Consent Calendar

1. City/EMID Special Meeting Minutes of March 23, 2026;

2. City Resolution No. 2026-026, “A Resolution of the City Council of the City of Foster City Amending the City Hall Flag Display Policy to Add the LGBTQIA+ Progress Pride Flag as an Approved Alternative Flag to the City’s Flag Policy and Repealing City Resolution No. 2020-58;”

3. City Resolution No. 2026-027, “A Resolution of the City Council of the City of Foster City Approving an Administrative Amendment to Paragraph 2.2 of the Peninsula Clean Energy Joint Powers Agreement Reflecting the Name Change of Peninsula Clean Energy to WestLight Energy;”

4. City Resolution No. 2026-028, “A Resolution of the City Council of the City of Foster City Authorizing the Foster City Police Department to Enter Into an Agreement with Peregrine Technologies for Data Aggregation Platform and Authorizing the Chief of Police to Sign the Agreement;”

5. City Resolution No. 2026-029, “A Resolution of the City Council of the City of Foster City Authorizing a Change to the Previously Approved Appropriation From the Vehicle Replacement Fund (501) to Account No. 501-0560-431-4384, Increasing the Amount From $84,687 to $88,456 ($3,769 Increase); Amending the Award for the Ford Expedition Max Active 4 Wd Vehicle by Changing the Vendor From Towne Ford to Serramonte Ford and Correcting the Bid Amount From $69,225 to $72,994; And Finding the Purchase Exempt From Review Under the California Environmental Quality Act (CEQA);”

6. City Resolution No. 2026-030, “A Resolution of the City Council of the City of Foster City Approving a Supplemental Appropriation of $13,844,250 for an Additional Discretionary Payment to CalPERS for the Partial Paydown of the City’s Unfunded Accrued Liability;”

7. EMID Resolution No. 3839, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Approving a Supplemental Appropriation Totaling $1,155,750 for an Additional Discretionary Payment to CalPERS for the Partial Paydown of the District’s Unfunded Accrued Liability;”

8. City Resolution No. 2026-031, “A Resolution of the City Council of the City of Foster City Authorizing the Two-Year Extension of the Existing Agreement for Professional Services (Audit/Accounting Services) With Badawi & Associates for

6.3 6.4 Minutes

19 FY 2025-26 and FY 2026-27 Financial Statement Audits and Associated Services for a Total of $52,930 per Year, Including Optional Services, if Required;”

9. EMID Resolution No. 3840, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Authorizing the Two-Year Extension of the Existing Agreement for Professional Services (Audit/Accounting Services) With Badawi & Associates for FY 2025-26 and FY 2026-27 Financial Statement Audits and Associated Services for a Total of $52,930 per Year, Including Optional Services, if Required;”

10.City Resolution No. 2026-032, “A Resolution of the City Council of the City of Foster City Accepting the Work by West Star Environmental, Inc. For the Fuel Systems Improvements Project (CIP 301-700) and Directing the City Clerk to File the Notice of Completion (CEQA Status: Exempt Pursuant to Section 15061(B)(3) and 15301(C) – Existing Facilities);” and

11.EMID Resolution No. 3841, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Accepting the Work by West Star Environmental, Inc. For the Fuel Systems Improvements Project (CIP301-700) and Directing the District Secretary to File the Notice of Completion (CEQA Status: Exempt Pursuant to Section 15061(B)(3) and 15301(C) – Existing Facilities).”

CITY/DISTRICT MANAGER REPORTS, COUNCIL/BOARD STATEMENTS AND

REQUESTS, AND COUNCIL LIAISON REPORTS
Councilmember/Director Jimenez stated she participated in a City/County Association of Governments of San Mateo County (C/CAG) event where she met with Senator Becker, Senator Wiener, and Assemblymember Papan regarding advocacy for e-bike bills and funding for projects. On March 27, she attended the Council of Cities meeting hosted by the City of Millbrae.

Vice Mayor/Vice President Niederhofer stated that she attended a San Mateo County District 2 meeting for elected officials on March 18, the Holi Festival event on March 21, and the Council of Cities meeting in Millbrae on March 27. On April 1, she attended the SFO Roundtable meeting where they discussed construction on runways that may affect traffic through the end of summer. On April 2, she attended the Planning Commission meeting. She commended the Rotary Club for their work reinstalling a donated playground structure in Hoopa, California.

Councilmember/Director Venkat stated she attended the BUGS (Building Up Green Spaces) Early Childhood Climate Summit on March 17. On March 19, she toured the new Community Center along with Mayor/President Kiesel, Planning Commissioner Haddad, and Planning Commissioner Stoveland. On March 30, she attended the San Mateo State of the City event.

Councilmember/Director Sullivan stated he attended the Holi Festival event on March 21, the C/CAG Bicycle and Pedestrian Advisory Committee meeting on March 26, and the Council of Cities meeting on March 27.

6.3 6.4 Minutes

20 Mayor/President Kiesel stated he attended the ribbon-cutting ceremony for Samuel Merritt University’s San Francisco Peninsula Campus in Foster City on April 3.

CLOSED SESSION
Mayor Kiesel recessed the meeting into Closed Session for:

1. Threat to Public Services or Facilities
Consultation with: (Cory Call, Chief of Police, Caitlin Smith and Pasha Sternberg, Polsinellie PC)

2. Conference with Real Property Negotiators
Property: 2401 E. Third Avenue, Foster City
City and EMID negotiator: City/District Manager
Negotiating parties: VB Golf, LLC
Under negotiation: price and terms of payment

3. Public Employee Performance Evaluation (Government Code 54957) Title:

City Manager; and

4. Report Out from Closed Session.

The following people addressed the City Council via email:

1. Shankar Kenkre;

2. Shawn Mooney; and

3. Evan Adams.

Meeting recessed into Closed Session at 7:36 p.m. and reconvened at 10:15 p.m.

City Attorney/District Legal Counsel 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 10:15 p.m.

6.3 6.4 Minutes

21 CITY OF FOSTER CITY/

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
SPECIAL MEETING OF APRIL 13, 2026

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS
The Special Meeting of April 13, 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 Conference Room, 620 Foster City Boulevard, Foster City, San Mateo County, California, by Mayor/President Art Kiesel.

ROLL CALL
The City/District Manager called the roll:

PRESENT: Councilmembers/ex officio EMID Directors Stacy Jimenez, Suzy Niederhofer, Patrick Sullivan, Phoebe Venkat, and Mayor/President Art Kiesel.

ABSENT: None.

STAFF PRESENT: Stefan Chatwin, City/District Manager; Denise Bazzano, Assistant City Attorney/District Legal Counsel; and Marlene Subhashini, Assistant City/District Manager.

CLOSED SESSION
Mayor/President Kiesel recessed the meeting into Closed Session for:

1. Threat to Public Services or Facilities
Consultation with: (Cory Call, Chief of Police, Caitlin Smith and Pasha Sternberg, Polsinelli PC);

2. Conference With Legal Counsel—Anticipated Litigation Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (D) of Section 54956.9: (One Potential Case); and

3. Report Out from Closed Session.

Meeting recessed into Closed Session at 6:32 p.m. and reconvened at 8:05 p.m.

Assistant City Attorney Bazzano reported that no action was taken in Closed Session.

6.4 6.4 Minutes

22 ADJOURNMENT
Hearing no objection from the City Council/EMID Board, Mayor/President Kiesel adjourned the meeting. Meeting adjourned at 8:05 p.m.

6.4 6.4 Minutes

23 DATE: April 20 2026

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

FROM: Andrew Brozyna, Public Works Director
Laura Galli, Engineering Manager
Ryan Marquez, Senior Civil Engineer
DEPARTMENT: Public Works
SUBJECT: AWARD OF AN AGREEMENT WITH MOFFATT & NICHOL IN THE AMOUNT OF $130,007 FOR PROFESSIONAL

ENGINEERING SERVICES FOR THE LAGOON DREDGE

SURVEY AND APPROVAL OF A CONTINGENCY IN THE
AMOUNT OF $20,000

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing:

1. The Mayor to execute an agreement with Moffatt & Nichol in the amount of $130,007 for professional engineering services for the Lagoon Dredge Survey;

2. A contract contingency in the amount of $20,000, with authorization for the City Manager or his designee to execute contract amendments up to the approved contingency amount; and

3. A finding that the work is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306 (Class 6 – Information Collection).

EXECUTIVE SUMMARY
The City maintains a 212-acre interior lagoon that serves both as a stormwater detention basin and recreational amenity. The Lagoon Dredge Survey will evaluate

6.5 6.5 Staff Report

24 accumulated sediment levels, identify shallow areas and sediment islands, and develop an updated existing-conditions base map to inform future maintenance and dredging planning efforts.

Staff issued a Request for Proposals (RFP) for professional engineering services to conduct a comprehensive lagoon bathymetric survey (the measurement and mapping of the depth and shape of underwater terrain), sediment probing, and preparation of a technical report. Two (2) proposals were received and evaluated using a qualifications- based selection (QBS) process. Following evaluation and interviews, Moffatt & Nichol was identified as the most qualified firm. The proposed fees have been negotiated and determined to be fair and reasonable based on the scope of services.

Adequate funding is available in the Public Works – Lagoon & Levees Fund (001-0920), as adopted in the Fiscal Year 2025–2026 budget.

Approval of the resolution will allow the consultant to begin work, with completion anticipated by September 2026.

BACKGROUND/ANALYSIS
The City’s lagoon was constructed in the 1960s as part of the original development of Foster City. The lagoon’s primary function is to provide stormwater detention for the entire City. Its secondary function is recreational, including boating, paddle sports, and aesthetic enjoyment for residents.

In the late 1990s, the City conducted a lagoon dredge survey that identified areas requiring dredging. Dredging was completed in 2004, restoring much of the lagoon to its original design depth of approximately six feet at summer water level. However, certain narrower channels were not dredged due to potential liability and may have experienced continued sediment accumulation.

More than 20 years have passed since the last comprehensive dredging effort. To support responsible asset management and inform planning for a future programmed Capital Improvement Program (CIP) dredging project, the City seeks to evaluate current sediment conditions. This survey will provide updated bathymetric data, identify priority areas for maintenance dredging, and assist the City in determining the timing and magnitude of future dredge work.

While dredging does not significantly increase the lagoon’s overall stormwater detention capacity, maintaining adequate depths supports recreational use, navigability, and long- term lagoon function.

6.5 6.5 Staff Report

25 The City issued an RFP seeking qualified firms to provide professional engineering services for the Lagoon Dredge Survey. Two (2) proposals were received on the due date of February 5, 2026.

Proposals were evaluated using QBS process in accordance with Government Code Section 4526 et seq. Fee proposals were not considered in ranking. An evaluation panel consisting of three (3) Engineering Division staff members reviewed the proposals based on project understanding, relevant experience, technical approach, and team qualifications.

Following evaluation, Moffatt & Nichol was determined to be the most qualified firm.

Moffatt & Nichol is currently providing dredging design services for the Marina Lagoon dredging project in the City of San Mateo. The proposed team for Foster City includes key personnel from that project, bringing relevant and current experience in lagoon bathymetric surveying and dredging planning.

Additionally, Moffatt & Nichol served as the design engineer for Foster City’s previous lagoon dredging project completed in the early 2000s. The firm is proposing to bring back two team members who worked on that prior project. This historical knowledge, combined with current regional dredging experience, provides valuable continuity and technical insight that will strengthen the quality and efficiency of the work.

Staff negotiated the final scope of services and fee and determined the proposed compensation to be fair and reasonable.

City Council approval will authorize commencement of the survey and analysis, with work completion anticipated by September 2026. The findings of the survey will be incorporated into a final report which will provide: (1) a comparative analysis of original and existing elevations; (2) maps and exhibits including a map of recommended potential dredging locations; (3) sediment testing guidance and discussion for disposal purposes; and (4) high level cost estimates. Any future project would need to factor in permitting and environmental documentation, private property policy considerations for work limits, and dredge disposal options.

CEQA
The proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306 (Class 6 – Information Collection). The contract authorizes bathymetric surveying, sediment probing, and preparation of a technical report. These activities involve data collection, research, and evaluation will not result in a serious or major disturbance to an environmental resource.

6.5 6.5 Staff Report

26 FISCAL IMPACT
The fiscal impact of this resolution is $150,007 including proposed agreement amount of $130,007 and a contingency of $20,000. Adequate funding is available in the Public Works – Lagoon & Levees Fund (001-0920), as adopted in the Fiscal Year 2025–2026 budget.

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

Attachment 1 – City Resolution
Attachment 2 – Agreement

6.5 6.5 Staff Report

27 4
4 8
0 RESOLUTION NO.____________

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

AUTHORIZING AWARD OF AN AGREEMENT WITH MOFFATT & NICHOL IN THE AMOUNT OF $130,007 FOR PROFESSIONAL ENGINEERING SERVICES FOR THE

LAGOON DREDGE SURVEY, APPROVAL OF AN AGREEMENT CONTINGENCY IN THE AMOUNT OF $20,000, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; AND FINDING THE PROJECT EXEMPT FROM CEQA UNDER SECTION 15306 – INFORMATION COLLECTION

CITY OF FOSTER CITY
WHEREAS, the City of Foster City maintains a 212-acre interior lagoon that serves as a stormwater detention basin and recreational amenity for the community; and WHEREAS, more than twenty (20) years have passed since the City completed its last lagoon dredging project, and updated bathymetric and sediment data is necessary to evaluate current lagoon conditions and inform planning for future dredging efforts; and WHEREAS, the City issued a Request for Proposals (RFP) for professional engineering services to conduct a Lagoon Dredge Survey, including bathymetric surveying, sediment probing, optional sediment characterization, and preparation of a technical report; and
WHEREAS, the RFP was advertised and two (2) engineering firms submitted proposals; and
WHEREAS, proposals were evaluated through a Qualifications-Based Selection (QBS) process in accordance with Government Code Section 4526 et seq., and Moffatt & Nichol was selected based on its demonstrated project understanding, relevant lagoon and dredging experience, and specialized technical expertise; and WHEREAS, Moffatt & Nichol previously served as the design engineer for the City’s prior lagoon dredging project and is currently providing similar dredging-related services in the region, providing valuable continuity and experience; and WHEREAS, the terms and fees of the consultant agreement have been negotiated and determined to be fair and reasonable based on the scope of services to be provided; and
WHEREAS, a project contingency in the amount of $20,000 will enable expedient resolution of changes to the agreement resulting from unforeseen conditions or additional services; and

6.5 Attachment 1 - Resolution

28 4
4 8
0 WHEREAS, sufficient funding in the amount of $150,007 exists in the Fiscal Year 2025–2026 adopted budget within the Public Works – Lagoon & Levees Fund (001-0920).

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

1. Authorize the Mayor to execute an agreement with Moffatt & Nichol in the amount of $130,007 for professional engineering services for the Lagoon Dredge Survey Project;

2. Approve a project contingency in the amount of $20,000, with authorization given to the City Manager to execute contract amendments up to the approved contingency amount; and

3. Find that the Project is categorically exempt pursuant to CEQA Guidelines Section 15306 – Information Collection.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of April, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.5 Attachment 1 - Resolution

29 Attachment B – Professional Services Agreement

Page 1 of 22 ends

PROFESSIONAL SERVICES AGREEMENT
FOR

LAGOON DREDGE SURVEY
This Agreement is made and entered into as of the 20th day of April, 2026 by and between the City of Foster City hereinafter called "CITY" and Moffat & Nichol hereinafter called "CONSULTANT".

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

WHEREAS, CITY desires to retain CONSULTANT to provide professional engineering services ; WHEREAS, CONSULTANT is specially trained, experienced and competent to perform and has agreed to provide such services;
NOW, THEREFORE, in consideration of the mutual promises, covenants, terms and conditions hereinafter contained, the parties hereby agree as follows:

TERMS AND CONDITIONS

1. Services. The services to be performed by CONSULTANT under this Agreement shall include those services set forth in Exhibit 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 Exhibit A is hereby made an obligation of CONSULTANT under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in Exhibit A.

1.Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and shall expire upon completion of performance of services hereunder by CONSULTANT. (b) Notwithstanding the provisions of (a) above, CITY may with or without cause, direct CONSULTANT to suspend, delay or interrupt Services, in whole or in part, for such periods of time as CITY may determine in its sole discretion. (c) CITY may terminate performance of the Services under this Agreement in whole, or from time to time in part, for default, should CONSULTANT commit a material breach of this Agreement, or part thereof, and not cure such breach within ten (10) calendar days of the date of CITY’s written notice to CONSULTANT demanding such cure, in which case CONSULTANT shall be liable to CITY for all loss, cost, expense, damage and liability resulting from such breach and termination. (d) CITY may terminate performance of the Services under this Agreement in whole, or from time to time in part, for convenience, whenever CITY determines that such termination is in CITY’s best interests, in which case CONSULTANT shall be entitled to recover its costs expended up to the termination date plus reasonable profit thereon to the termination date as this Agreement would otherwise provide, but may recover no other cost, damage or expense. CONSULTANT shall continue its

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work throughout the course of any dispute, and CONSULTANT’s failure to continue work during a dispute shall be a material breach of this Agreement.

2. Compensation; Expenses; Payment. CITY shall compensate CONSULTANT for all services performed by CONSULTANT hereunder in an amount based upon CONSULTANT’s hourly rates during the time of the performance of said services. A copy of CONSULTANT’s hourly rates for which services hereunder shall be performed are set forth in CONSULTANT’s fee schedule marked Exhibit “B” hereof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum one hundred thirty thousand seven dollars and zero cents ($130,007). Invoices for amounts in excess of one hundred thirty thousand seven dollars and zero cents ($130,007) shall not be paid unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by CITY’s Manager (for contracts less than $50,000) or CITY Board (for contracts $50,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Compensation and reimbursement of costs and expenses hereunder shall be payable upon monthly billing, within thirty (30) days of CITY’s receipt of uncontested billing, therefor by CONSULTANT to CITY, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed. Final payment will be made when all Services required under this Agreement have been completed to the reasonable satisfaction of CITY including, without limitation, CONSULTANT's transmittal of all deliverables to CITY required by EXHIBIT A.

CITY shall not incur any charges under this Agreement, nor shall any payments become due to CONSULTANT for any payment period on the Project, until CITY receives all deliverables required under Exhibit A, SCOPE OF WORK AND SCHEDULE, for the payment period (if any) and reasonably accepts such deliverables as meeting the requirements of this Agreement. In cases where CONSULTANT has partially completed one or more deliverables due during a payment period, and if CONSULTANT demonstrates diligent progress thereon, then CITY may make a partial progress payment based upon percentage completion of the partially completed deliverables and diligent progress but taking into account any adverse impacts upon CITY. CITY shall not be liable for, and CONSULTANT shall not be entitled to, any payment for Services performed before this Agreement's execution.

4. Additional Services. In the event CITY desires the performance of additional services not otherwise included within the services described in Exhibit A, such services shall be authorized in advance of the performance thereof by CITY’s Manager (for contracts less than $50,000) or CITY Board (for contracts $50,000 or more) by motion duly made and carried. Such amendment to this Agreement shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

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

6.Authorization. This Agreement becomes effective when endorsed by both parties in the space provided below.

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

CONSULTANT represents that it has reviewed Exhibit A and that in its professional judgment the Services to be performed under this Agreement can be performed for a fee within the maximum amount set forth in the Compensation Schedule established in Exhibit A and within the times specified for each individual Project.

CONSULTANT represents that it possesses all necessary training, licenses and permits to perform the Services and that its performance of the Services will conform to the standards of practice of a professional ordinarily exercised in performing professional services of like nature and complexity of the Services working on similar, successfully completed projects currently practicing under similar circumstances at the same time and in the same or similar locality ("Standard of Care").

The granting of any progress payment by CITY, or the receipt thereof by CONSULTANT, or any inspection, review, approval or oral statement by any representative of CITY or any other governmental entity, shall in no way waive or limit the obligations in this Paragraph 7 or lessen the liability of CONSULTANT for unsatisfactory Services, including but not limited to cases where the defective or below the Standard of Care Services may not have been apparent or detected at the time of such payment, inspection, review or approval.

8.Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as finally rendered, prepared by CONSULTANT pursuant to the terms of this Agreement, shall, upon preparation and delivery to CITY, become the property of CITY.

9.Relationship of Parties. CONSULTANT is an independent Contractor and does not act as City’s agent in any capacity, whatsoever. CONSULTANT is not entitled to any benefits that CITY provides to CITY employees, including, without limitation, worker’s compensation benefits or payments, pension benefits, health benefits or insurance benefits. Terms within this Agreement regarding direction apply to and concern the result of the CONSULTANT’s provision of Services, not the means, methods, or scheduling of the CONSULTANT’s work. CONSULTANT shall be solely responsible for the means, methods, techniques, sequences and procedures with respect to its provision of Services under this Agreement.

CONSULTANT shall pay all payroll taxes imposed by any governmental entity and shall pay all other taxes not specifically identified in this Agreement as CITY’s responsibility.

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10. Schedule. CONSULTANT shall adhere to the schedule set forth in Exhibit A; provided, that CITY shall grant reasonable extensions of time for the performance of such services occasioned by governmental reviews of CONSULTANT’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, CONSULTANT’s officers or employees.

CONSULTANT acknowledges the importance to CITY of CITY’s Project schedule and agrees to put forth its best professional efforts to perform its services under this Agreement in a manner consistent with that schedule and the Standard of Care.

11.Indemnity.

To the fullest extent allowed by law, CONSULTANT hereby agrees to defend, indemnify, and save harmless CITY and City of Foster City, its Council, boards, commissions, officers, employees, directors, volunteers and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, injury (including, without limitation, economic harm, injury to or death of any person, including an employee of CONSULTANT or its Subconsultants), cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, at law or equity, which may be brought against, or suffered or sustained by, City of Foster City, its board, commissions, officers, employees, directors, volunteers or agents that arise out of, pertain to, or relate to any negligence, recklessness, or willful misconduct of CONSULTANT, any Subconsultant, anyone directly or indirectly employed or retained by them, or anyone that they control. In the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the CONSULTANT shall meet and confer with other parties regarding unpaid defense costs.

The duty of CONSULTANT to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require CONSULTANT to indemnify City of Foster City, its board, commissions, officers, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

CONSULTANT’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.

The defense and indemnification obligations of this agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.

If CONSULTANT is a “design professional,” as defined in California Civil Code Section 2782.8(c), CONSULTANT shall indemnify, defend, and hold the Indemnitees harmless against Liability only to the extent such Liability arises out of, pertains to, or relates to CONSULTANT’s negligence, recklessness, or willful misconduct. In such an event, the cost to defend charged to CONSULTANT shall not exceed CONSULTANT’s proportionate percentage of fault.

12. Insurance. Prior to execution of this Agreement, CONSULTANT shall furnish to CITY Certificates of Insurance showing satisfactory proof that it maintains the insurance required by this Contract as set forth in EXHIBIT C, Insurance, which are attached and made a part of this Agreement. CONSULTANT

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shall maintain all required insurance throughout the term of this Agreement and as otherwise provided in EXHIBIT C. In the event CONSULTANT fails to maintain any required insurance, and notwithstanding Paragraph 3 above, CITY may (but is not obligated to) purchase such insurance and deduct or retain premium amounts from any sums due CONSULTANT under this Agreement (or CONSULTANT shall promptly reimburse CITY for such expense).

CONSULTANT shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following completion of this project or service. In the event CONSULTANT fails to obtain or maintain completed operations coverage as required by this Agreement, the CITY at its sole discretion may purchase the coverage required and the cost will be paid by CONSULTANT.

13.WORKERS' COMPENSATION. CONSULTANT certifies that he is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and CONSULTANT certifies that he will comply with such provisions before commencing the performance of the work of this agreement.

14. NON-DISCRIMINATION. The CONSULTANT will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CONSULTANT will take affirmative action to ensure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101-336) which prohibits discrimination on the basis of disability by public entities. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

15. Notice. All notices required by this Agreement shall be given to the CITY and CONSULTANT 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: ____________________
CONSULTANT: ____________________________
(Fill in CONSULTANT Name, Address, Phone Number, Project Manager and Email Address for

CONSULTANT)

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

17.Amendments. This Agreement may be amended or modified only by written agreement signed by

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both parties.

18. 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.

19. Governing Law. This Agreement shall be deemed to have been executed in the County of San Mateo, California. The formation, interpretation and performance of this Agreement shall be governed by the laws of the State of California, excluding its conflict of laws rules. Any suit or action initiated by either party shall be brought in the County of San Mateo, California unless the parties agree otherwise in a written amendment to this Agreement.

20.Mediation. Should any dispute arise out of this Agreement, the parties shall 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 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.

21. Conflict of Interest. CONSULTANT represents and warrants that it presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of work and services required under this Agreement. Without limitation, CONSULTANT represents to and agrees with CITY that CONSULTANT has disclosed any potential conflict of interest, and will have no future conflict of interest, in providing CITY services hereunder, including but not limited to, any interest (financial, share ownership, shared management, shared directors, or reporting responsibilities) CONSULTANT may presently have, or will have in the future, with respect to any other person or entity (including but not limited to potential suppliers, vendors, consultants, contractors, or regulatory agency) which may have an interest in the subject matter of the Services.

22. Limitation of Liability of CITY. Except as provided in Exhibit A, Services to be Provided by CONSULTANT and Exhibit C, Insurance, CITY's obligations under this Agreement shall be limited to the payment of the compensation provided for in Paragraphs 1, 3, and 4 of this Agreement, Notwithstanding any other provision of this Agreement, in no event shall either party be liable, regardless of whether any claim is based on contract, tort or otherwise, for any special, consequential, indirect or incidental damages, lost profits or revenue, arising out of or in connection with this Agreement, the Services, or the Project.

CITY shall not be responsible for any damage to persons or property as a result of the use, misuse or failure of any equipment used by CONSULTANT, or by any of its employees, even though such equipment be furnished, rented or loaned to CONSULTANT by CITY. The acceptance or use of such equipment by CONSULTANT or any of its employees shall be construed to mean that CONSULTANT accepts full responsibility for and shall exonerate, indemnify, defend and save harmless CITY from and against any and all claims for any damage or injury of any type, including attorneys' fees, arising from the use, misuse or failure of such equipment, whether such damage be to the CONSULTANT, its employees, CITY employees or third parties, or to property belonging to any of the above.

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Nothing in this Agreement shall constitute a waiver or limitation of any right or remedy, whether in equity or at law, which CITY or CONSULTANT may have under this Agreement or any applicable law. All rights and remedies of CITY or CONSULTANT, whether under this Agreement or other applicable law, shall be cumulative.

23.Waiver of Default. Waiver of any default by either party to this Agreement shall not be deemed to be waiver of any subsequent default. Waiver or breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach, and shall not be construed to be a modification of the terms of this Agreement unless this Agreement is modified as provided below.

24. Force Majeure. Except for defaults of subconsultants at any tier, CONSULTANT shall not be liable for any excess costs if the failure to perform the Agreement arises from causes beyond the control and without the fault or negligence of CONSULTANT, including without limitation failure to reasonably mitigate any adverse impacts (Force Majeure). Force Majeure events include the following:

Acts of God, fires, floods, earthquake, other natural disasters, epidemics and pandemics (other than COVID-19 or variants), abnormal weather conditions beyond the parameters otherwise set forth in this Article, nuclear accidents, strikes, lockouts, freight embargos, interruptions in service by a regulated utility, or governmental statutes or regulations enacted or imposed after the fact (together, “force majeure events”).

Any Force Majeure event with a duration in excess of not less than 30 days entitles either party to terminate this Agreement with written notice to the other party, without further penalty or compensation.

25.Entire Agreement. This Agreement, including Exhibits A, B, C, and D comprises the entire Agreement.
[Signatures on Next Page]

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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 OF FOSTER CITY

CITY OF FOSTER CITY
Dated: _________________________________ Art Kiesel, Mayor
ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM
Dated:

Benjamin Stock, City Attorney

CONSULTANT
Dated:

Jaclyn Gnusti,
Business Unit Leader
Moffatt & Nichol

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EXHIBIT A

SERVICES TO BE PROVIDED, PAYMENTS, PROJECTS AND SCHEDULE, AND DELIVERABLES FOR

LAGOON DREDGE SURVEY
Task 1: Project Management & Coordination
This task includes general project management of communications, schedules, budget, and subconsultants. One site visit for two people is included to view and photograph the lake to observe conditions such as vessel access and restrictions (such as bridges and electrical wires), and upland sediment processing areas.

Task 1 Deliverables: Meeting notes, communication records, site visit notes and photographs Task 2: Review Existing Data
Immediately upon the notice to proceed, we will prepare a list of missing information to be provided by the City, as well as search our own archives for project data related to dredging, lagoon infrastructure and outfalls, and other critical elements, such as access for equipment or local ordinances that might affect the work. We will prepare a list of references that can be accessed by all team members throughout the project and will be referenced during Task 5.

Task 2 Deliverables: List of requested information; Log of received information and references Task 3: Develop Workplan & Testing Memo
Prior to initiating field data collection through hydrographic surveying, we will prepare a Workplan. We will coordinate with our surveyor sub-consultant, Cinquini & Passarino (C&P), to ensure that critical areas of the lagoon are adequately covered by referring to previous shoaling records. The workplan will outline surveying procedures and equipment, proposed coverage, identification of known or suspected high shoaling areas, known structures, and schedule. A draft workplan will be provided to the City for review and comment. After receiving the comments, we will address them in one (1) revision which will be the final surveying workplan.

Task 3 Deliverables: Draft and final surveying workplan Task 4: Field Data Collection
The C&P field team will review all prior surveys and tie-into previously set control points that were used for the last dredge episode. They will survey the previously established cross sections, as well as additional cross sections to fill in existing data gaps. C&P will use an industry-leading single beam sonar for the survey, which is more appropriate for accuracy in shallow water bodies than the more common multibeam method. The survey procedures and equipment will follow the Class 1 survey methods and accuracies, per the United States Army Corps of Engineers’ (USACE) Hydrographic Survey Manual.

The resultant dataset will meet Special Order standards as outlined by the Federal Geographic Data Committee (FGDC). An electric motor will be used during the work. All survey activities will be supervised by a California Professional Land Surveyor and executed by an ACSM-Certified Hydrographer.

Task 4 Deliverables: DEM surface (compatible with CAD or GIS), Bathymetric change comparison between the previous survey and this current survey; Volume calculations; Field data collection report

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Task 5: Survey Report
When the new survey data becomes available, we will compile all known information into a report that includes: • Recommended dredging areas and frequency, with priority locations. • Comparative analysis of original and existing elevations (isopach figures and assessment). • Maps and exhibits, including maps of recommended dredging locations. • Sediment testing guidance and discussion from Pacific EcoRisk • High level cost estimate.

A report outline will be presented to the City early in the project to assure early alignment of report approach. Upon receipt of the survey data, we will prepare a draft report and presentation for the City.

After receiving City comments, we will prepare the final the report. With the guidance and assistance of the City, M&N will summarize the results of the report into a few slides to present at the City Council Meeting (if applicable).

Task 5 Deliverables: Report outline; Draft report with presentation; Final report; City Council Meeting (if applicable)

END OF EXHIBIT A

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EXHIBIT B -FEE SCHEDULE

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EXHIBIT C

INSURANCE FORMS
CONSULTANT shall provide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified herein on the attached form. No substitute form will be accepted.

This is an Exhibit to, and made a part of and incorporated by reference to the Agreement dated Date of Agreement, by and between Consultant Name, hereinafter referred to as "Consultant”, and City of Foster City, hereinafter referred to as "City", providing for professional services.

1.Consultant's Duty to Show Proof of Insurance. Consultant, in order to protect City and its Council members, officials, agents, officers, and employees against all claims and liability for death, injury, loss and damage as a result of Consultant's acts, errors, or omissions in connection with the performance of Consultant's obligations, as required in this Agreement, shall secure and maintain insurance as described below. Consultant shall not perform any work under this Agreement until Consultant has obtained all insurance required under this section and the required certificates of insurance and all required endorsements have been filed with the City's authorized insurance representative, insurance Tracking Services Inc. (ITS). Receipt of evidence of insurance that does not comply with all applicable insurance requirements shall not constitute a waiver of the insurance requirements set forth herein. The required documents must be signed by the authorized representative of the insurance company shown on the certificate. Upon request, Consultant shall supply proof that such person is an authorized representative thereof, and is authorized to bind the named underwriter(s) and their company to the coverage, limits and termination provisions shown thereon, Consultant shall promptly deliver to ITS a certificate of insurance, and all required endorsements, with respect to each renewal policy, as necessary to demonstrate the maintenance of the required insurance coverage for the term specified herein.

Such certificates and endorsements shall be delivered to ITS prior to the expiration date of any policy and bear a notation evidencing payment of the premium thereof if so requested. Consultant shall immediately pay any deductibles and self-insured retentions under all required insurance policies upon the submission of any claim by Consultant or City as an additional insured.

1.1Insurance Requirements
☒ Commercial General Liability Insurance
Commercial General Liability Insurance including, but not limited to, Contractual Liability Insurance (specifically concerning the indemnity provisions of this Agreement with the City ), Products-Completed Operations Hazard, liability for slander, false arrest and invasion of privacy arising out of professional services rendered hereunder, Personal Injury (including bodily injury and death), and Property Damage for liability arising out of Consultant's performance of services under this Agreement. The Commercial General Liability insurance shall contain no exclusions or limitation for independent contractors working on the behalf of the named insured. Consultant shall maintain the Products-Completed Operations Hazard coverage for the longest period allowed by law following termination of this Agreement. The amount of said insurance coverage required by this Agreement shall be the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence and five million dollars ($4,000,000)

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aggregate.
*Please note, the City will require a separate additional insured endorsement for the Commercial General Liability policy, listing the “City of Foster City, its Council members, officials, agents, officers, and employees”.
☒ Business Automobile Liability Insurance
Automobile Liability Insurance against claims of Personal Injury (including bodily injury and death) and Property Damage covering any vehicle and/or all owned, leased, hired and non-owned vehicles used in the performance of Services pursuant to this Agreement with coverage equal to the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence. ☒ Workers' Compensation Insurance
Consultant shall submit written proof that Consultant is insured against liability for workers' compensation in accordance with the provisions of section 3700 of the California Labor Code.

Consultant shall require any Subconsultants to provide workers' compensation for all of the Subconsultants' employees, unless the Subconsultants' employees are covered by the insurance afforded by Consultant. If any class of employees engaged in work or services performed under this Agreement is not covered by California Labor Code section 3700, Consultant shall provide and/or require each Subconsultant to provide adequate insurance for the coverage of employees not otherwise covered. Consultant shall also maintain employer's liability insurance with limits of one million dollars ($1,000,000) for bodily injury or disease.
☒ Professional Liability Insurance
Professional Liability (Errors and Omissions) Insurance, for liability arising out of, or in connection with, all negligent acts, errors or omissions in connection with services to be provided under this Agreement, with no exclusion for claims of one insured against another insured, with coverage equal to the policy limits, which shall not be less than two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) aggregate.

1.2Self-Insured Retention
Any self-insured retentions in excess of $100,000 must be declared on the Certificate of insurance or other documentation provided to City and must be approved by the City Risk Manager.

1.3Claims-Made Basis Coverage
If any of the insurance coverages required under this Agreement is written on a claims-made basis, Consultant, at Consultant's option, shall either (i) maintain said coverage for at least five (5) years following the termination of this Agreement with coverage extending back to the effective date of this Agreement; (ii) purchase an extended reporting period of not less than five (5) years following the termination of this Agreement; or (iii) acquire a full prior acts provision on any renewal or replacement policy.

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2.City as Additional Insured
On Consultant's Commercial General Liability and Automobile policies, the City of Foster City, its Council members, officers, directors, agents, employees, and volunteers, shall be named as additional insured's, but only with respect to liability arising out of the activities of the named insured. Any endorsement shall be provided using one of the following three options: (i) on ISO form CG 20 10 1 1 85; or (ii) on ISO form CG 20 37 10 01 plus either ISO form CG 20 10 10 01 or CG 20 33 10 01; or (iii) on such other forms which provide coverage at least equal to or better than form CG 20 10 1 1 85.

3.Insurance terms and conditions:

3.1Cancellation of Insurance
The above stated insurance coverages required to be maintained by Consultant shall be maintained until the completion of all of Consultant's obligations under this Agreement except as otherwise indicated herein. Each insurance policy supplied by Consultant shall not be suspended, voided, cancelled or reduced in coverage or in limits except after ten (10) days written notice by Consultant in the case of non-payment of premiums, or thirty (30) days written notice in all other cases. This notice requirement does not waive the insurance requirements stated herein. Consultant shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non-renewed, or whose policy limits have been exhausted or upon insolvency of the insurer that issued the policy.

3.2All insurance shall be issued by a company or companies admitted to do business in California and listed in the current "Best's Key Rating Guide" publication with a minimum rating of A-; VII Any exception to these requirements must be approved by the City Risk Manager.

3.3If Consultant is, or becomes during the term of this Agreement, self-insured or a member of a self-insurance pool, Consultant shall provide coverage equivalent to the insurance coverages and endorsements required above. The City will not accept such coverage unless the City determines, in its sole discretion and by written acceptance, that the coverage proposed to be provided by Consultant is equivalent to the above-required coverages.

3.4For any claims related to the Agreement, the Consultant’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City , its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

3.5Insurance coverages in the minimum amounts set forth herein shall not be construed to relieve Consultant for any liability, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the coverage; nor shall it preclude the City from taking such other actions as are available to it under any other provision of this Agreement or otherwise in law.

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3.6Failure by Consultant to maintain all such insurance in effect at all times required by this Agreement shall be a material breach of this Agreement by Consultant. City, at its sole option, may terminate this Agreement and obtain damages from Consultant resulting from said breach.

Alternatively, City may purchase such required insurance coverage, and without further notice to Consultant, City shall deduct from sums due to Consultant any premiums and associated costs advanced or paid by City for such insurance. If the balance of monies obligated to Consultant pursuant to this Agreement are insufficient to reimburse City for the premiums and any associated costs, Consultant agrees to reimburse City for the premiums and pay for all costs associated with the purchase of said insurance. Any failure by City to take this alternative action shall not relieve Consultant of its obligation to obtain and maintain the insurance coverages required by this Agreement.

3.7Should any of the required insurance (other than errors and omissions insurance) be provided under a form of coverage that includes a general annual aggregate limit or provides that claims investigation or legal defenses costs be included in such general aggregate limit, such general annual aggregate limit shall be double the occurrence or claims limit specified above.

3.8City may (but is under no obligation to) secure project-specific insurance, wrap-up insurance, or administer an owner controlled insurance program ("OCIP"), in which case Consultant and its subconsultants shall communicate this fact to their insurance carriers and request that the risk of this project be excluded from their practice policies. Consultant's fees under this Agreement (and the fee of its subconsultants under subconsultant agreements) shall be reduced by the amount of insurance premiums that may be avoided by Consultant and its subconsultants by virtue of the City's obtaining the project-specific insurance, wrap-up insurance or administering an OCIP, and the exclusion of this project from coverage of Consultant's and subconsultants policies.

Construction Manager and its subconsultants shall afford City access to their books and records and cooperate with City in verifying the amount of savings realized.

ATTACHED

1. Insurance Coverage Form

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EXHIBIT C
This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work
Date(s):

Description of Work/Locations/Vehicles:

ADDITIONAL INSURED: City of Foster City (CITY)
610 Foster City Boulevard, Foster City, CA 94404
Attention: _________________________________
Contract Administrator
Endorsement and Certificates of Insurance Required
The Additional Insured, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (Check all that apply) Insurer Policy
No.

General Liability: (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/or (d) permits issued for operations performed by the Named Insured. {Note: MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}
Auto Liability: the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the Additional Insured, its elected or appointed officers, officials, employees or volunteers.

Other: [Cyber Liability, Installation Floater, etc.]
Certificates of Insurance Required (no endorsement needed) (Check all that apply)
Insurer Policy
No.

Workers Compensation: work performed by employees of the Named Insured while those employees are engaged in work under the simultaneous directions and control of the Named Insured and the Additional Insured.

Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds.

6.5 Attachment 2 - Agreement

45 Attachment B – Professional Services Agreement

Page 17 of 22 ends

SEVERABILITY OF INTEREST: The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS: Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers.

CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) days if canceled due to non-payment) by regular mail return receipt requested has been given to the Additional Insured. Such notice shall be addressed as shown above.

WAIVER OF SUBROGATION: The insurer(s) named above agree to waive all rights of subrogation against the CITY, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the CITY.

Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated.

SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER I, ______________________________________________________________(print/type name), warrant that I have authority to bind the above-named insurance company and by my signature hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required) ORGANIZATION: _____________________________TITLE:________________________________ ADDRESS:________________________________________________________________________ TELEPHONE: ( ) DATE ISSUED:__________________________

6.5 Attachment 2 - Agreement

46 Attachment B – Professional Services Agreement

Page 18 of 22 ends

COVID-19 AMENDMENT/ATTACHMENT
(Consulting Agreement Form)
This COVID-19 Amendment/Attachment amends the Agreement between ____________________ (“City”) and ____________________________ (“Consultant”) dated ___________________________.

1. Definitions
A. The 2019 novel coronavirus and the disease it causes are collectively referred to herein as “COVID- 19”.

B. A “COVID-19 Condition” is something attributable to COVID-19 not caused by the Consultant (which for purposes herein includes all subconsultants) and beyond its reasonable control including but not limited to COVID-19 Proclamations and supply chain disruptions due to COVID-19, and other circumstances concerning COVID-19 not caused by the Consultant and which are beyond its reasonable control.

C. A “COVID-19 Proclamation” includes but is not limited to orders, directives and guidance concerning COVID-19 that have been issued, and which may be issued from time to time, by public agencies or regulatory bodies, the CDC or OSHA or Cal/OSHA, including without limitation the Cal/OSHA COVID-19 Prevention Emergency Temporary Standards. Consultant acknowledges that those orders, directives and guidance may require the Project to shut down or otherwise increase the Consultant’s cost or time of performance by calling for things such as social distancing and the use of personal protective equipment. In the event of conflicting COVID-19 Proclamations, the Consultant shall follow the most applicable, restrictive and newest COVID-19 Proclamations.

D. An “Unknown COVID-19 Condition” is a COVID-19 Condition the Consultant did not know about, and reasonably should not have known about, as of the date the Consultant submitted its proposal. The requirements contained in COVID-19 Proclamations issued before submission of a proposal are not Unknown COVID-19 Conditions, and the Consultant will be deemed to have knowledge of those requirements.

E. An “Unknown COVID-19 Cost” is a cost that: (i) is solely attributable to an Unknown COVID-19 Condition; (ii) is reasonable and unavoidable under the circumstances; (iii) is not the result of the Consultant’s failure to comply with the contract documents or a COVID-19 Proclamation; and (iv) is not the result of a subconsultants failure to comply with a COVID-19 Proclamation in connection with the performance of the Services.

2. COVID-19 Conditions and Proposal. Consultant is expected to know and is deemed to have known about COVID-19 Conditions when it submits its proposal, and COVID-19 Conditions must be accounted for in the Consultant’s price and schedule. In order to be entitled to any relief from a COVID- 19 Condition, the Consultant must demonstrate that the issue, cost or delay is due to an Unknown COVID-19 Condition.

3. Compliance with COVID-19 Proclamations.

A. Consultant shall comply with COVID-19 Proclamations in the performance of the Services,

6.5 Attachment 2 - Agreement

47 Attachment B – Professional Services Agreement

Page 19 of 22 ends

irrespective of when the COVID-19 Proclamations are issued, and as they pertains to performance of the Services. The cost of such compliance is non-compensable, except as otherwise expressly stated herein.

B. Consultant is responsible to ensure that its subconsultants and suppliers comply with COVID-19 Proclamations at all times in connection with the performance of their Services.

4. Delay. The Consultant is entitled to a reasonable time extension for an Unknown COVID-19 Condition. Such time extension is non-compensable.

5. City Directed Suspension. The City may suspend Services due to COVID-19 health concerns, even though the Consultant may be allowed to proceed with the Services based on COVID-19 Proclamations. The City may suspend the Services for its convenience. The Consultant is entitled to a time extension for a City Directed Suspension, and the contract amount will be equitably adjusted if and to the extent Consultant incurs increased costs that are Unknown COVID-19 Costs.

6. Compensation for COVID-19 Costs. City will reimburse the Consultant for Unknown COVID-19 Costs that are not included in the schedule of values.

7. Safe Work Practices. Consultant shall implement safe work practices recommended by CDC or OSHA or Cal/OSHA, which may include, inter alia, screening all employees, subconsultants, or others (“worker(s)”) at all locations where Services are performed for signs and symptoms of COVID-19; adopting staggered work schedules, e.g., providing alternating workdays or extra shifts, to reduce the total number of employees on a site at any given time and to ensure physical distancing; identifying choke points where workers are forced to stand together, such as hallways and elevators, ingress and egress points, break areas, and buses, and implement policies to maintain social distancing; coordinating deliveries in line with the employer's minimal contact and cleaning protocols; and instituting a rigorous housekeeping program to reduce dust levels at all exterior locations. Consultant remains fully responsible for following and complying with changes to recommended safe work practices from time to time.

8. Monitoring and Reporting. City may require the Consultant to actively monitor the health of its workers through temperature checks and questionnaires of major COVID-19 symptoms, including but not limited to cough, fever above 100.4 degrees Fahrenheit and shortness of breath. Consultant shall immediately report to City any outbreaks of COVID-19 among its workers. The Consultant shall not knowingly allow any worker who has tested positive with COVID-19 to enter a City building. In the event of an outbreak or an exposure to COVID-19, the City may impose appropriate mitigation strategies which may be in consultation with the public health officer.

9. Conflicts. In the event of an inconsistency between this COVID-19 Amendment and the Agreement, this Addendum shall control.

IN WITNESS WHEREOF, the City and Consultant have executed this Covid-19 Amendment as of the date set forth above.

6.5 Attachment 2 - Agreement

48 Attachment B – Professional Services Agreement

Page 20 of 22 ends

CONSULTANT: CITY:
________________________ ____________________________
Signature Signature
________________________ ______________________________

6.5 Attachment 2 - Agreement

49 DATE: April 20, 2026

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

FROM: Andrew Brozyna, Public Works Director
Laura Galli, Engineering Manager
Francine Magno, Senior Civil Engineer
Claire McWilliams, Assistant Engineer
DEPARTMENT: Public Works
SUBJECT: APPROPRIATION IN THE AMOUNT OF $21,000 FROM THE GENERAL PLAN MAINTENANCE FUND (FUND 128) TO
ACCOUNT 128-0838-419-42-51; CONTRACT AMENDMENT NO.

THREE (3) IN THE AMOUNT OF $24,278 TO THE AGREEMENT

WITH FEHR AND PEERS FOR THE FOSTER CITY BICYCLE

AND PEDESTRIAN MASTER PLAN (BPMP)

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing:

1. A supplemental appropriation in the amount of $21,000 from the General Plan Maintenance Fund (Fund 128) to Account 128-0838-419-42-51 for the continued development of the Foster City Bicycle and Pedestrian Master Plan; and

2. The City Manager to execute Contract Amendment No. Three (CA #3) to the agreement with Fehr and Peers in the amount of $24,278 for professional services for the Foster City Bicycle and Pedestrian Master Plan; and

3. Finding that the project is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000.

EXECUTIVE SUMMARY

6.6 6.6 Staff Report

50 The City’s consultant, Fehr and Peers, has been developing the BPMP Project (“Plan” or “Project”), which is a comprehensive plan to improve the way people walk, bike, and roll throughout Foster City. As the project progressed, it became apparent that additional touchpoints with the City Council and the Traffic Review Committee (TRC) would be necessary to ensure adequate guidance and input during development of the Plan beyond what was originally scoped. CA #3 will provide for two additional public meetings to Fehr & Peers’ scope of work. This includes time and materials to prepare for and attend two additional work sessions for the City Council and TRC, and to cover additional submittal reviews, as needed. The proposed fees, for the not-to-exceed amount of $24,278, have been determined reasonable. The project does not have enough budget to cover the costs to address this additional effort. A supplemental appropriation in the amount of $21,000 from Fund 128 to Account 128-0838-419-42-51 is requested to facilitate completion of the Project.

BACKGROUND
On March 3, 2025, the Council awarded a contract to Fehr and Peers in the amount of $130,000 and established a contingency in the amount of $20,000. The Project kicked off in April 2025 and included the following tasks:

1. Project Management and Work Plan

2. Existing Conditions, Data Collection, and Review

3. Public Outreach

4. Citywide Infrastructure Needs and Demands Assessment

5. Goals and Policy Development

6. Recommendations and Implementation Strategy

7. Draft and Final Plan
The Project work plan further organized these tasks into three (3) phases:

1. Phase 1 – Existing Conditions

2. Phase 2 – Draft Projects and Programs

3. Phase 3 – Draft Plan
Phase 1 was completed in July 2025 and consisted of data collection and public outreach to gather public input on the current issues and opportunities of the existing bicycle and pedestrian network and to solicit ideas for the future of walking, biking, and rolling in Foster City.

Phase 2 consisted of the development of draft projects and programs based on what was learned during Phase 1 outreach. This phase involved sharing proposed improvements and programs with the public that could address their needs and concerns and gathering feedback on those improvements through interactive maps on

6.6 6.6 Staff Report

51 the City’s website. Additionally, the Plan’s Goals and Policies were drafted to guide the prioritization and sequencing of future Project implementation. In response to strong interest from community stakeholders and City Council regarding bicycle and pedestrian safety for students in Foster City, staff expanded the project scope to enhance the public engagement approach and included an additional event with school Parent Teacher Association groups. This extended the project schedule by approximately two (2) months as part of CA #1. Additionally, during Phase 2, staff introduced an additional public meeting on December 15, 2025, to provide both an update on the BPMP’s progress to the City Council and solicit feedback on the goals and policies and Project prioritization methodology prior to development of a scored Project list originally planned for late November. The addition of this meeting to the Project scope, via CA #2, extended the Project completion to Spring 2026.

Since the December 15, 2025, meeting where the City Council received an update on all Project activities up to that point, staff have undertaken a thorough and deliberate review of the draft list of twenty-four (24) projects included in the proposed future network. This effort has involved applying the scoring methodology approved by the City Council, conducting two levels of internal review on the resulting list, contextualizing public feedback received over Phases 1 and 2 in relation to future projects, and reassessing each project in the context of the broader goals and priorities of the Plan. The project team also evaluated preliminary feasibility, potential impacts, and alignment with long-term capital planning. As a result of this comprehensive process, staff now recommend five (5) priority projects that best balance the established criteria, community input, and overall vision for the network.

ANALYSIS
As noted at the December 15 Council meeting, the project team anticipated bringing the Draft Plan in Spring 2026, with the incorporated five (5) detailed priority project cut sheets developed through the project scoring methodology approved by City Council and staff analysis. An opportunity for City Council to discuss and provide feedback on the five (5) projects recommended by staff to be further developed will be provided at an upcoming TRC meeting and a City Council Work Session scheduled for May 4, 2026 at 5:00 PM.

The original scope of work does not include these additional steps. To accommodate the additional meetings and extended timeline, an amendment to the professional services agreement with Fehr and Peers is required. CA #3 reflects the consultant’s time and materials needed to prepare for and attend the two additional public meetings, to analyze and incorporate meeting feedback into the draft Plan, to cover administrative overhead and internal coordination due to the project’s schedule extension, additional review iterations driven by staff, and to conduct additional reviews necessitated by these meetings.

6.6 6.6 Staff Report

52 City staff have reviewed the proposed cost and determined it to be reasonable and consistent with the level of effort required. After the City Council Work Session scheduled for May 4, 2026, the project schedule includes several weeks of project work to develop the five (5) priority projects and draft Plan. The final tasks in the BPMP Project include a couple months of public outreach, review, and adoption hearings per CEQA requirements for plan adoption. Staff are currently anticipating bringing the draft Plan before Council for review and final adoption in August 2026.

CEQA
This agenda item is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a "project" that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT
The fiscal impact of this resolution is $21,000. The available funding in the project contingency is $3,665, requiring a budget appropriation. The proposed resolution would appropriate an additional $21,000 to the Foster City Bicycle and Pedestrian Master Plan Project Account 128-0838-419-42-51 from the General Plan Maintenance Fund to account for the contingency shortage. The proposed CA #3 in the amount of $24,278 has been negotiated by staff and determined reasonable and consistent with the level of effort required. With the execution of CA #3, the revised contract amount is $170,613.

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

Attachment 1 – Resolution
Attachment 2 – Contract Amendment No. Three (3)

6.6 6.6 Staff Report

53 4
5 0
5 RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY AUTHORIZING AN APPROPRIATION IN THE AMOUNT OF $21,000 FROM THE GENERAL PLAN MAINTENANCE FUND (FUND 128) TO ACCOUNT 128-0838-419-42- 51; AUTHORIZING CONTRACT AMENDMENT NO. THREE (3) TO THE AGREEMENT WITH FEHR AND PEERS IN THE AMOUNT OF $24,278 FOR THE FOSTER CITY BICYCLE AND PEDESTRIAN MASTER PLAN; AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 3; AND FINDING PROJECT EXEMPT FROM REVIEW

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21000

CITY OF FOSTER CITY
WHEREAS, the development of the Foster City Bicycle and Pedestrian Master Plan (BPMP) aims to address bicycle and pedestrian safety needs throughout the City; and WHEREAS, on March 17, 2025 the Foster City Council adopted Resolution No. 2025-14 awarding a professional services agreement to Fehr and Peers in an amount not-to-exceed $130,000 to develop the BPMP; and
WHEREAS, as part of the City’s commitment to inclusive public engagement throughout the planning process, two additional meetings are recommended to provide an opportunity for the City Council and Traffic Review Committee to review five projects recommended by staff to be further explored, prior to proceeding with their detailed development and incorporation into the final plan; and
WHEREAS, Contract Amendment No. Three (3) in the amount of $24,278 will provide for Fehr and Peers’ time and materials needed to prepare for and attend two additional outreach meetings, to analyze and incorporate meeting feedback into the draft plan, to cover administrative overhead and internal coordination due to the project’s schedule extension, additional review iterations driven by staff, and to conduct additional reviews necessitated by these and other meetings added to the project scope; and
WHEREAS, the project does not have enough budget to cover the cost to address the additional effort; and
WHEREAS, this Project is exempt pursuant to Public Resources Code Section 21000.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize:

6.6 Attachment 1 - Resolution

54 4
5 0
5 1. A supplemental appropriation in the amount of $21,000 from the General Plan Maintenance Fund (Fund 128) to Account 128-0838-419-42-51 for the continued development of the Foster City Bicycle and Pedestrian Master Plan; and

2. The Mayor to execute Contract Amendment No. Three (3) to the agreement with Fehr and Peers in the amount of $24,278 for the Foster City Bicycle and Pedestrian Master Plan; and

3. This project is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of April, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________

ART KIESEL, MAYOR
ATTEST:
________________________________

PRISCILLA SCHAUS, CITY CLERK

6.6 Attachment 1 - Resolution

55 CITY OF FOSTER CITY
CONTRACT AMENDMENT NO. THREE (3)
DATE: April 20, 2026 ACCOUNT NO. 128-0838-419-42-51 PROJECT NAME: FOSTER CITY BICYCLE AND PEDESTRIAN MASTER PLAN (BPMP)
TO: FEHR AND PEERS
CHANGE REQUESTED BY: City of Foster City
Based on mutual agreement, Fehr and Peers and the City of Foster City agree to amend the Professional Services Agreement dated March 17, 2025 (“Agreement”) pursuant to Section 4 of the Agreement to amend the Scope of Work identified in Exhibit A to add services relating to the Foster City Bicycle and Pedestrian Master Plan and adjusting the compensation accordingly as described more fully below.

ORIGINAL CONTRACT AMOUNT $ 130,000
AMOUNT OF CONTRACT TO DATE $ 146,335
AMOUNT OF CONTRACT AMENDMENT NO. THREE (3) $ 24,278
Additional work included in this Contract Amendment No. 3:

Task 1: Project Management and Work Plan

1. Additional monthly meetings, project coordination, and invoicing required as part of the project schedule extension of five (5) months $ 8,145
Task 3: Public Outreach – Additional City Council and Traffic Review Committee Meeting

1. One (1) additional presentation to City Council including materials, attendance, delivery of presentation, and incorporation of meeting feedback

2. One (1) additional Traffic Review Committee Meeting including materials, attendance, and delivery of presentation, and incorporation of meeting feedback
$ 8,588
Task 6: Recommendations and Implementation Strategy

1. Additional time spent on the priority project concepts and responses to City comments
$ 7,545
Subtotal $ 24,278
REVISED CONTRACT AMOUNT $ 170,613

6.6 Attachment 2 - Contract Amendment No. 3

56 4
5 0
4 Except as specifically modified herein, all other terms and provisions in the Agreement shall remain unchanged.

Fehr & Peers have given careful consideration to the work proposed and hereby agree, if this proposal is approved, to provide all equipment, furnish all materials except as may otherwise be noted above, and to perform all services necessary for the work above specified, and to accept as full payment therefore the prices shown above. [Signatures on Next Page]

6.6 Attachment 2 - Contract Amendment No. 3

57 4
5 0
4 IN WITNESS WHEREOF, the City of Foster City and have executed this Amendment Number Three (3) to the Agreement, which shall be effective as of April 20, 2026, regardless of when it is executed.

SUBMITTED BY:

CLAIRE MCWILLIAMS DATE

PROJECT MANAGER
ACCEPTED BY: _____

ERIN FERGUSON, PRINCIPAL DATE

FEHR AND PEERS
APPROVAL RECOMMENDED:

ANDREW BROZYNA DATE

PUBLIC WORKS DIRECTOR
APPROVED FOR CITY:

STEFAN CHATWIN DATE

CITY MANAGER
ATTEST:

BY:

PRISCILLA SCHAUS, CITY CLERK

APPROVED AS TO FORM
BY:

BENJAMIN L STOCK DATE

CITY LEGAL COUNSEL

6.6 Attachment 2 - Contract Amendment No. 3

58 1
1 8
3 DATE: April 20, 2026

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: Diane Pitman, Administrative Services Director
Dawud Brewer, Human Resources Manager
DEPARTMENT: Administrative Services
SUBJECT: REVISION OF BUILDING/FLEET MAINTENANCE

SUPERINTENDENT JOB DESCRIPTION

RECOMMENDATION
It is recommended that the City Council/Estero Municipal Improvement District Board of Directors (City Council) adopt the attached resolutions approving the revised job description for the Building/Fleet Maintenance Superintendent.

EXECUTIVE SUMMARY
The current qualifications in the Building/Fleet Maintenance Superintendent job description are primarily tailored to candidates with experience in fleet management and related services. Staff recommends revising the qualifications to also include experience in facilities and building maintenance. This adjustment will broaden the applicant pool and ensure consideration of candidates with relevant expertise across both areas.

BACKGROUND/ANALYSIS
Under general direction, the Building/Fleet Maintenance Superintendent plans, schedules, manages and supervises the programs and activities of the Building and Fleet Maintenance Division; manages and develops outside contracts, vendors, and

6.7 6.7 Staff Report

59 1
1 8
3 project budgets; assures regulatory compliance and economy in all programs; coordinates assigned activities with other City departments and outside agencies; provides responsible and technical staff assistance; and performs duties as assigned.

The current qualifications in the Building/Fleet Maintenance Superintendent job description are primarily tailored to candidates with experience in fleet management and related services.

A revision of the job description is needed to also include experience in facilities and building maintenance which will broaden the applicant pool and ensure consideration of candidates with relevant expertise across both areas.

It should be noted that the Building/Fleet Maintenance Superintendent classification, previously titled Building/Fleet Maintenance Manager, has been an active classification since June 2023. Subsequently, on February 17, 2026, the classification title and salary was formally revised, with Council approval, to ensure greater internal alignment with comparable classifications.

California Environmental Quality Act
Not Applicable

FISCAL IMPACT
None

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

Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Building/Fleet Maintenance Superintendent Job Description

6.7 6.7 Staff Report

60 4
4 8
7 RESOLUTION NO. __________

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

THE BUILDING/FLEET MAINTENANCE SUPERINTENDENT JOB DESCRIPTION

CITY OF FOSTER CITY
WHEREAS, under general direction, the Building/Fleet Maintenance Superintendent plans, schedules, manages and supervises the programs and activities of the Building and Fleet Maintenance Division; manages and develops outside contracts, vendors, and project budgets; assures regulatory compliance and economy in all programs; coordinates assigned activities with other City departments and outside agencies; provides responsible and technical staff assistance; and performs duties as assigned; and
WHEREAS, the current qualifications in the Building/Fleet Maintenance Superintendent job description are primarily tailored to candidates with experience in fleet management and related services; and
WHEREAS, a revision of the job description is needed to also include experience in facilities and building maintenance which will broaden the applicant pool and ensure consideration of candidates with relevant expertise across both areas.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City does hereby approve the revised job description for the Building/Fleet Maintenance Superintendent.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of April 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.7 Attachment 1- City Resolution

61 4
4 8
8 RESOLUTION NO. __________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT REVISING THE BUILDING/FLEET MAINTENANCE

SUPERINTENDENT JOB DESCRIPTION

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, under general direction, the Building/Fleet Maintenance Superintendent plans, schedules, manages and supervises the programs and activities of the Building and Fleet Maintenance Division; manages and develops outside contracts, vendors, and project budgets; assures regulatory compliance and economy in all programs; coordinates assigned activities with other City departments and outside agencies; provides responsible and technical staff assistance; and performs duties as assigned; and
WHEREAS, the current qualifications in the Building/Fleet Maintenance Superintendent job description are primarily tailored to candidates with experience in fleet management and related services; and
WHEREAS, a revision of the job description is needed to also include experience in facilities and building maintenance which will broaden the applicant pool and ensure consideration of candidates with relevant expertise across both areas.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby approve the revised job description for the Building/Fleet Maintenance Superintendent.

PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 20th day of April 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.7 Attachment 2 - EMID Resolution

62 Established Date: June 2023
Revised: April 2026
FLSA: EXEMPT
Unit: Management

BUILDING/FLEET MAINTENANCE SUPERINTENDENT

DEFINITION
Under general direction, plans, schedules, manages and supervises the programs and activities of the Building and Fleet Maintenance Division; manages and develops outside contracts, vendors, and project budgets; assures regulatory compliance and economy in all programs; coordinates assigned activities with other City departments and outside agencies; provides responsible and technical staff assistance; and performs duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from assigned management personnel. Exercises direct supervision over maintenance staff.

CLASS CHARACTERISTICS
This is a management classification responsible for planning, organizing, reviewing, and evaluating diverse and specialized building and fleet maintenance and repair functions. Responsibilities include developing and implementing policies and procedures for assigned programs, budget administration and reporting, and program evaluation. Incumbents serve as a professional-level resource for organizational, managerial, and operational analyses and studies. Performance of the work requires the use of considerable independence, initiative, and discretion within established guidelines.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
Plans, organizes, assigns, supervises, and reviews the work of staff assigned to the maintenance and repair of City buildings, vehicles, and equipment; trains staff in work procedures; evaluates employee performance, counsels employees, and effectively recommends initial disciplinary action; assists in selection and promotion.
Participates in the development of goals, objectives, policies, and procedures for the division; recommends within division policy, appropriate service and staffing levels; recommends and administers policies and procedures.
Participates in the development, administration, and oversight of division budget; determines funding needed for staffing, equipment, materials, and supplies; ensures compliance with budgeted funding. Receives, evaluates, and processes work requests from City departments; determines priorities and methods necessary to achieve objectives; advises management staff of work in progress, operating problems and actual or potential delays.
Supervises the use and operation of tools, equipment, and vehicles; ensures that tools, equipment, and vehicles are safely operated, maintained, and secured when not in use; schedules service, repair, and replacement of tools and equipment.

6.7 Attachment 3 - Building Fleet Maintenance Superintendent Job Description

63 Building/Fleet Maintenance Superintendent

Page 2 of 4 ends

Inspects work in progress and completed work of assigned employees and contractors for accuracy, proper work methods and techniques, and compliance with applicable standards and specifications. Evaluates equipment for purchase and assists in the development of specifications; orders materials and supplies; approves orders of materials and supplies by other staff associated with program area. Coordinates projects with other City work units and outside contractors; assists in the determination of the need for use of contractors; prepares contract documents and specifications; participates in vendor/contractor selection; administers contracts; reviews and evaluates the work of contractors; determines contractual compliance; reviews and approves billings and charges for services. Provides staff assistance to management; prepares and presents staff reports and other written materials; supervises the establishment and maintenance of reports, records, and files; ensures the proper documentation of operations and activities.
Answers questions and provides information to the public; investigates and responds to complaints and inquiries from citizens, other departments, and agencies; recommends corrective actions to resolve issues.
Performs the most complex building and fleet maintenance duties and provides technical assistance to crews.
Troubleshoots complex operational and maintenance problems; corrects or directs the correction and repair of operational and/or equipment problems.
Maintains files, databases, and records related to building and fleet maintenance and operations; prepares a variety of written reports, memoranda, and correspondence. Represents the City in meetings with members of other public and private organizations, community groups, contractors, developers, and the public.
Ensures the City’s safety and health programs are implemented and carried out in the assigned division(s).
Performs other related duties as assigned.

QUALIFICATIONS
Knowledge of:
Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures. Principles and practices of leadership.
Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility. Applicable federal, state, and local laws, codes, and ordinances relevant to area(s) of responsibility. Basic principles and practices of budget administration and monitoring. Principles and practices of commercial building codes. Principles and practices of heating, ventilation, and air conditioning (HVAC) systems. Methods, practices, materials, tools, and equipment used in the installation, repair, adjustment, and maintenance of equipment common to residential and commercial buildings. Methods, techniques, tools, equipment, and materials used in the maintenance and repair of motors and engines.
Methods and practices used in equipment purchasing and acquisition. Business mathematics.
Design drawing and specifications.
Principles and procedures of record keeping.
Occupational hazards and safety equipment and practices related to the work. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.

6.7 Attachment 3 - Building Fleet Maintenance Superintendent Job Description

64 Building/Fleet Maintenance Superintendent

Page 3 of 4 ends

Modern equipment and communication tools used for business functions and program, project, and task coordination.
Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
Select and supervise staff, provide training and development opportunities, ensure work is performed effectively and evaluate performance in an objective and positive manner. Assist in developing and implementing goals, objectives, practices, policies, procedures, and work standards.
Provide administrative, management, and professional leadership for the division and the City. Perform the most complex building and fleet maintenance and repair duties and operate related equipment safely and effectively.
Implement innovative techniques in response to mechanical and electrical problems. Troubleshoot, diagnose, test, and repair a wide variety of power-driven vehicles and equipment. Research and evaluate new service delivery methods, procedures, and techniques. Prepare budget analysis, cost projections and cost-benefit analyses. Read, interpret, retrieve, and produce drawings, blueprints, maps, specifications, and wiring diagnostics.
Prepare clear, effective, and accurate reports, correspondence, and other written materials. Maintain accurate logs, records, and written records of work performed. Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
Effectively represent the department and the City in meetings with individuals; governmental agencies; community groups; various business, professional, and regulatory organizations. Learn and understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments. Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to completion of the twelfth (12th) grade supplemented by specialized training or coursework in construction trades, maintenance, automotive technology, or repair, and/or supervision and five (5) years of experience as a journey-level mechanic performing vehicle and equipment repairs or general repair and maintenance in one or more of the building trades, of which two (2) years should be in a supervisory or lead capacity.

Licenses and Certifications:

6.7 Attachment 3 - Building Fleet Maintenance Superintendent Job Description

65 Building/Fleet Maintenance Superintendent

Page 4 of 4 ends

Possession of, or the ability to obtain, a valid Class C California driver’s license upon appointment.

Possession of, or ability to obtain within one year of appointment, a Class B California driver’s license with tank and airbrake endorsement.
Possession of ,or the ability to obtain, National Institute for Automotive Service Excellence (ASE) Certification in air conditioning, brakes, and electrical systems is highly desired. Possession of, or the ability to obtain, Building Operator Certification Level 1 and 2 is highly desired.

PHYSICAL DEMANDS
Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, grasp and make repetitive hand movement in the performance of daily duties; to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vision to inspect and operate equipment.

The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards.

Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 50 pounds or heavier weights of up to 100 pounds on a frequent/occasional basis, in all cases with the use of proper equipment and/or assistance from other staff.

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS
Employees work in the field and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, chemicals, mechanical and/or electrical hazards, hazardous physical substances and fumes, dust, and air contaminants. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures.

6.7 Attachment 3 - Building Fleet Maintenance Superintendent Job Description

66 DATE: April 20, 2026

TO: President and Members of the EMID Board of Directors VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager

FROM: Andrew Brozyna, Public Works Director/District Engineer Laura Galli, Engineering Manager
Francine Magno, Senior Civil Engineer
Jerrick Carandang, Associate Civil Engineer
DEPARTMENT: Public Works Department
SUBJECT: APPROVAL OF PLANS AND SPECIFICATIONS,

AUTHORIZATION TO CALL FOR BIDS FOR PHASE I OF THE

EMERGENCY GENERATOR REPLACEMENT (PHASE I)
PROJECT (CIP 455-705)

RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) adopt the attached resolution approving the Plans and Specifications and authorizing the call for bids for the Emergency Generator Replacement (Phase I) Project (CIP 455-705).

EXECUTIVE SUMMARY
CIP 455-705 addresses the replacement of emergency generator systems (generators) and automatic transfer switch (ATS) equipment at ten (10) of the District’s lift stations.

Due to the long lead time of equipment, staff developed separate prepurchase packages to order generators and ATSs during the design phase so that delivery of the equipment coincides with the project timeline for construction. The first prepurchase package prioritized Lift Stations 22, 29 and 59 equipment as the expected lead time was the longest (approximately one year). These three (3) generators have been ordered and will be delivered prior to the start of construction.

6.8 6.8 Staff Report

67 Freyer & Laureta, Inc. (F&L) has prepared the construction documents for the project, and the project is now ready to be advertised for bidding.

Funding in the amount $6,200,000 is budgeted and adequate to fund construction of the project. The Board of Directors’ action will allow staff to advertise Phase I of the project for bidding. Construction is anticipated to take approximately 5-6 months with an anticipated start in July 2026.

BACKGROUND
CIP 455-705 was approved by the District Board as part of the Fiscal Year 2021-2022 budget to address the replacement of emergency generators at ten (10) of the District’s wastewater lift stations (Lift Stations 10, 12, 14, 15, 16, 22, 26, 29, 41 and 59) and associated ATSs with exception of the ATS equipment at Lift Station 22 which was deemed to be in good condition. The existing generators and ATS equipment scheduled for replacement have reached the end of their useful lives.

Staff prioritized Lift Stations 22, 29, 59 due to their importance to the system and having a much longer lead time (upwards of a year) to procure the equipment. Due to this, staff split CIP 455-705 into two Phases where Phase I consisted of Lift Stations 22, 29 and 59 while Phase II contains the remaining Lift Stations (10, 12, 14, 15, 16, 26, 41). Phase II is currently in design and is anticipated to start construction in early 2027. Concurrently, staff is working with CD & Power on a separate procurement for the remaining seven (7) generators which are expected to be delivered by approximately January 2027.

On August 15, 2022, the District Board adopted Resolution No. 3672, awarding professional engineering services for CIP 455-705 to F&L for the design, permitting and support.

On August 19, 2024, the District Board adopted Resolution No. 3772 authorizing a vendor agreement with Bay City Electric Works for the purchase of three (3) generators and two (2) ATSs for Lift Stations 22, 29, and 59 in the amount of $1,587,158.

On April 7, 2025, the District Board adopted Resolution No. 3795 approving an amendment to the vendor agreement with Bay City Electric Works to allow for the purchase of two (2) EPA Tier 4 certified generators for Lift Station 22 and Lift Station 29 in the amount of $127,978.

ANALYSIS
Plans and specifications for Phase I of CIP 455-705 are complete and ready for bidding.

The three (3) generators for Lift Stations 22, 29, and 59 are expected to be delivered at the start of construction. The two (2) ATSs have already been delivered and are currently being stored at the Corporation Yard.

6.8 6.8 Staff Report

68 Construction is anticipated to begin in August 2026 and will take approximately 5-6 months to complete. During construction, space/access impacts in the District’s Corporation Yard are expected. The work and staging will be coordinated interdepartmentally to ensure continued operations in the yard. Additionally, there will be multiple scheduled shutdowns of the lift stations in order to safely tie in the new electrical and mechanical components. The shutdowns will occur overnight from 12 a.m. to 5 a.m. to allow work to be performed when wastewater levels are at their lowest. Staff will take the lead in the shutdowns and will be on stand-by to monitor critical infrastructure and assets.

The overall project management will be provided by in-house staff while construction management and daily inspection will be provided by on-call consultant support. A hardcopy of the plans and specifications is available for view in the City Council’s Office at City Hall.

Emergency Generator Replacement Project (Phase I) Anticipated Schedule Approve Plans & Specifications & Authorize Call for Bids April 20, 2026 Bid Opening June 4, 2026
Award of Contract July 2, 2026
Contract Execution July 2026
Construction August 2026 – Jan 2027
Project Notice of Completion February 2027
CEQA
Categorically Exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities.

FISCAL IMPACT
There is no fiscal impact associated with this action. Funding in the amount $6,200,000 is budgeted for the project. Based on the Engineer’s Estimate, adequate funding is available to fund construction.

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

Attachment 1 – Resolution

6.8 6.8 Staff Report

69 4
4 8
5 RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT APPROVING THE PLANS AND SPECIFICATIONS,

AUTHORIZING THE CALL FOR BIDS FOR PHASE I OF THE EMERGENCY GENERATOR REPLACEMENT PROJECT (CIP 455-705); AND FINDING THE PROJECT EXEMPT FROM CEQA UNDER SECTION 15301(B) – EXISTING

FACILITIES

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, CIP 455-705 addresses the replacement of emergency generators and automatic transfer switch (ATS) equipment located at ten (10) of the District’s lift stations; and
WHEREAS, staff split the project into two phases to prioritize lift stations 22, 29, 59 into Phase I due to the long lead time for equipment; and WHEREAS, the generators and ATSs are essential equipment in providing uninterrupted power to the pumps in the lift stations in a case of a power outage; and WHEREAS, on August 15, 2022, the Board of Directors adopted Resolution No. 3672, awarding professional engineering services for CIP 455-705 to Freyer & Laureta, Inc. for the design, permitting and support; and
WHEREAS, on August 19, 2024, the Board of Directors adopted Resolution No. 3772 authorizing a vendor agreement with Bay City Electric Works for the purchase of three (3) generators, two (2) ATSs and associated equipment for LS 22, 29 and 59; and WHEREAS, ATS and the associated equipment have been delivered while the generators have been purchased and will be delivered at the start of construction; and WHEREAS, Plans and Specifications for Phase I of the Emergency Generator Replacement Project (CIP 455-705) are complete and ready for bid; and WHEREAS, this Project is categorically exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities; and
WHEREAS, funding is available in the budget for CIP 455-705 Emergency Generator Replacement Project.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby approve the plans and specifications and authorize the call for bids for Phase I of the Emergency Generator Replacement Project (CIP 455-705).

6.8 Attachment 1 - Resolution

70 4
4 8
5 PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 20th day of April 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

6.8 Attachment 1 - Resolution

71 DATE: April 20, 2026

FROM: Nate Cruz, Finance Director
DEPARTMENT: Finance
SUBJECT: PUBLIC HEARING ON MASTER FEES AND SERVICE CHARGES FOR FY 2026-27 AND FY 2027-28 (EXCLUDING PARKS AND

RECREATION)

RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors hold a public hearing on the proposed changes to the Master Fees and Service Charges Schedule (excluding Parks and Recreation charges which are tentatively scheduled for a public hearing on May 18, 2026). After considering the staff report and public testimony, it is further recommended that the City Council/EMID Board adopt the attached resolutions approving the Master Fees and Service Charges Schedule for FY 2026-27 and FY 2027-28.

EXECUTIVE SUMMARY
At the March 23, 2026 Budget Study Session, City/District staff recommended the FY 2026-27 Master Fees and Service Charges Schedule (“Schedule”) including new fees and clarifications from the Police and Community Development Departments with the remainder of the Schedule adjusted for inflation (Attachment 3, with changes shown in red). In order to create the FY 2027-28 Schedule, staff will automatically increase the FY 2026-27 Schedule based upon the inflation index specified by the 2023 User Fee Study. Automatic updates based on inflation indices do not require Council Action.

7.1 7.1 Staff Report

72 At this time, it is appropriate to hold a public hearing on these proposed changes and, subject to public testimony and other direction provided by the City Council/EMID Board, approve the Master Fees and Service Charges Schedule for FY 2026-27 and FY 2027-28.

Notably, the Parks and Recreation fee changes will be presented and approved separately to allow sufficient time to develop and review fees associated with the new Community Center. Discussion of those fees is scheduled for a study session on April 20, 2026 with a public hearing planned on May 18, 2026.

BACKGROUND/ANALYSIS
The proposed Master Fees and Service Charges Schedule for FY 2026-27 is provided in Attachment 3, including proposed staff billing rates for fees that are calculated on a time and materials basis. The inflation adjustment was generally 3.0% (from the Consumer Price Index for the San Francisco Bay Area as of December 2025); however some CDD fees are adjusted by the Building Cost Index or Engineering News-Record Construction Cost Index as specified by the 2023 User Fee Study.

In order to calculate the inflation adjustments for the FY 2027-28 Schedule, staff will automatically increase the rates based upon the inflation index specified by the 2023 User Fee Study. Automatic updates based on inflation indices do not require Council Action.

Utility Rates – Water and Wastewater Services
In June of 2025, the EMID Board approved five years of rates, including any adjustments needed to allow for pass-through costs associated with wholesale water prices from the San Francisco Public Utilities Commission. No change in the approved rates are needed at this time, and staff will inform the Board of the pass-through costs in a separate staff report on April 20, 2026.

Community Development Department Fees
In addition to inflationary adjustments, the Community Development Department is proposing a number of revisions and clarifications to the schedule, including (but not limited to) a fee for deferred submittal of a plan check fee, a flat fee for battery backup systems, and adding residential garage door permit to the schedule.

Police Department Fees
In addition to inflationary adjustment, the Police Department is eliminating outdated charges that no longer apply and creating a new fine for no parking unless charging.

7.1 7.1 Staff Report

73 Parks and Recreation Department Fees
Due to additional analysis and review time needed to establish fees for the new Community Center, the Parks and Recreation Department fees are scheduled for discussion during an April 20, 2026 study session then a public hearing on May 18, 2026.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable

FISCAL IMPACT
The adoption of an updated Master Fees and Service Charges Schedule provides for the cost recovery of various city services.

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

ATTACHMENTS
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Proposed Master Fees and Services Charges Schedule for FY 2026-27

7.1 7.1 Staff Report

74 RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY AMENDING THE MASTER FEES AND SERVICE CHARGES SCHEDULE FOR FY 2026-2027 AND FY 2027-2028

CITY OF FOSTER CITY
WHEREAS, the City Council adopted a Master Fees and Service Charges Schedule; and
WHEREAS, adjusting the Master Fees and Service Charges will provide an updated reflection on the cost recovery of providing services to the City’s customers; and WHEREAS, the proposed fees do not exceed the reasonable cost of providing services to the public; and
WHEREAS, a Notice of Public Hearing has been published and posted and said public hearing was held on April 20, 2026; and
WHEREAS, the City Council finds that the proposed fees reflect the cost recovery of providing services; and
WHERAS, the City Council will separately approved the Master Fees and Service Charges for the Parks and Recreation Department.

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

1. Finds that adjustments in Master Fees and Service Charges are necessary to reflect the cost recovery of providing services.

2. The attached FY 2026-27 Master Fees and Services Charges Schedule (Exhibit A) shall become effective on July 1, 2026.

3. Direct staff to automatically increase the FY 2026-27 Master Fees and Services Charges Schedule for inflation according to the User Fee Study to create the FY 2027-28 Master Fees and Service Charges Schedule effective July 1, 2027.

7.1 Attachment 1 - City Resolution

75 PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 20th day of April, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

7.1 Attachment 1 - City Resolution

76 RESOLUTION NO. _____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT AMENDING THE MASTER FEES AND SERVICE CHARGES SCHEDULE FOR FY 2026-2027 AND FY 2027-2028

ESTERO MUNICPAL IMPROVEMENT DISTRICT
WHEREAS, the Board of Directors adopted a Master Fees and Service Charges Schedule; and
WHEREAS, adjusting the Master Fees and Service Charges will provide an updated reflection on the cost recovery of providing services to the District’s customers; and
WHEREAS, the proposed fees do not exceed the reasonable cost of providing services to the public; and
WHEREAS, a Notice of Public Hearing has been published and posted and said public hearing was held on April 20, 2026; and
WHEREAS, the Board of Directors finds that the proposed fees reflect the cost recovery of providing services.

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

1. Finds that adjustments in Master Fees and Service Charges are necessary to reflect the cost recovery of providing services.

2. Directs staff to automatically increase the FY 2026-27 Master Fees and Services Charges Schedule for inflation according to the User Fee Study to create the FY 2027-28 Master Fees and Service Charges Schedule effective July 1, 2027.

3. The attached FY 2026-27 Master Fees and Services Charges Schedule (Exhibit A) shall become effective on July 1, 2026.

7.1 Attachment 2 - EMID Resolution

77 PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the Regular Meeting held on the 20th day of April, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ART KIESEL, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

7.1 Attachment 2 - EMID Resolution

78 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 Community Development
CDB-01 Plan Checking Fees
1st Plan Check 70% of building fee 70% of building fee
2nd Plan Check No additional cost No additional cost
3rd and following Actual Cost Actual Cost
Express Plan Check Additional 50% of regular plan checking fee except for minor projects like ADUs, JADUs, solar, and electrical charging stations
Additional 50% of regular plan checking fee except for minor projects like ADUs, JADUs, solar, and electrical charging stations
CDB-02 Building Permit Fees (Based on valuation)
A) $1 to 500 $65.82 $68.38
B) $501 to 2,000 $65.82 for the first $500,
+ $8.29 for each additional $100 or
fraction thereof, to and including $2,000
$68.38 for the first $500,
+ $8.61 for each additional $100 or
fraction thereof, to and including $2,000
C) $2,001 to 25,000 $196.33 for the first $2,000,
+ $39.57 for each additional $1,000 or
fraction thereof, to and including $25,000
$203.98 for the first $2,000,
+$41.11 for each additional $1,000 or
fraction thereof, to and including $25,000
D) $25,001 to 50,000 $1,112.26 for the first $25,000,
+ $27.54 for each additional $1,000 or
fraction thereof, to and including $50,000
$1,155.63 for the first $25,000,
+ $28.61 for each additional $1,000 or
fraction thereof, to and including $50,000
E) $50,001 to 100,000 $1,806.47 for the first $50,000,
+ $19.56 for each additional $1,000 or
fraction thereof, to and including $100,000
$1,876.92 for the first $50,000,
+ $20.32 for each additional $1,000 or
fraction thereof, to and including $100,000
F) $100,001 to 500,000 $2,806.30 for the first $100,000, + $15.38 for each additional $1,000 or
fraction thereof, to and including $500,000
$2,850.19 for the first $100,000,
+ $15.98 for each additional $1,000 or
fraction thereof, to and including $500,000
G) $500,001 to 1,000,000 $9,091.88 for the first $500,000, + $13.25 for each additional $1,000 or
fraction thereof, to and including $1,000,000
$9,446.46 for the first $500,000,
+ $13.77 for each additional $1,000 or
fraction thereof, to and including $1,000,000
H) $1,000,000+ and up $15,814.19 for the first $1,000,000, + $7.84 for each additional $1,000 or fraction thereof
$16,430.94 for the first $1,000,000,
+ $8.15 for each additional $1,000 or fraction thereof
I) Solar (Photovoltaic) Panels Move to CDB-17 Move to CDB-17 J) Kitchen Remodel Building Permit Fee - Flat Rate Move to CDB-17 Move to CDB-17 K) Single Bathroom Remodel Building Permit Fee Flat Rate Move to CDB-17 Move to CDB-17 CDB-03 General Plan and Title 15 Building and Title 17 Zoning Ordinance Maintenance Fees 1) $1 to $500 No Fee No Fee
2) Accessory Dwelling Units No Fee No Fee
3) Affordable Housing Projects that are 100% income restricted No Fee No Fee 4) $501 and up 0.50% of the application value above $500 0.50% of the application value above $500 CDB-04 Plumbing Permit Fees
Per Unit Fee Schedule (Plumbing)

1. Plumbing Permit Issuance Fee $115.11 $119.59

2. Plumbing Supplemental Permit Issuance Fee (per application) $115.11 $119.59

3. For each trap $29.48 $30.62

4. For each building sewer system $63.45 $65.92

5. For each building water system $29.48 $30.62

6. For each rainwater system per drain $29.48 $30.62

7. For each water heater or vent $29.48 $30.62

8. For each gas piping system (1-5 outlets) $4.64 $4.82

9. For each gas outlet over 5 (per outlet) $4.64 $4.82

10. For each interceptor or grease trap $29.48 $30.62

11. For each repair to a water system $29.48 $30.62

12. For each repair to a drain/vent $29.48 $30.62

13. For each check/backflow (2" or smaller) $29.48 $30.62

14. For each check/backflow (over 2") $63.45 $65.92

15. For each vacuum breaker (1-5) $20.64 $21.44

16. For each vacuum breaker over 5 $4.64 $4.82

17. For fire sprinkler systems $16.39 $17.02

18. For medical gas piping system $213.08 $221.39

19. For each medical gas outlet $20.64 $21.44

20. For graywater system $169.15 $175.74

21. For Plumbing per valuation $14.61 per each $1,000 in valuation or fraction thereof $15.17 per each $1,000 in valuation or fraction thereof City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

79 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
CDB-05 Mechanical Permit Fees
Per Unit Fee Schedule (Mechanical)

1. Mechanical Permit Issuance Fee $115.11 $119.59

2. Mechanical Supplement Permit Issuance Fee (per application) $115.11 $119.59

3. For each furnace/heat pump to 100,000 BTU $62.78 $65.22

4. For each furnace/heat pump over 100,000 BTU $76.99 $79.99

5. For each floor furnace $62.78 $65.22

6. For each suspended or wall furnace $62.78 $65.22

7. For each appliance vent $30.16 $31.33

8. For repair to a heating or cooling appliance. $57.01 $59.23

9. For each boiler/comp. to 100,000 BTU (3hp) $61.99 $64.40

10. For each boiler/comp. over 100,000 BTU (15hp) $115.55 $120.05

11. For each boiler/comp. over 500,000 BTU (30hp) $157.52 $163.66

12. For each boiler/comp. over 1,000,000 BTU (50hp) $174.69 $181.50

13. For each boiler/comp. over 1,750,000 BTU (over 50 hp) $174.69 $181.50

14. For each AC unit up to 10,000 CFM $44.77 $46.51

15. For each AC unit over 10,000 CFM $76.60 $79.58

16. For each single duct vent fan $30.16 $31.33

17. For each ventilation system $44.77 $46.51

18. For each hood $44.77 $46.51

19. For each domestic type incinerator $76.99 $79.99

20. For each commercial type incinerator $61.55 $63.95

21. For any other appliance $44.77 $46.51

22. Fireplace Inserts $43.92 $45.63

23. Freestanding Stove $43.92 $43.92

24. For Mechanical per valuation $14.61 per each $1,000 in valuation or fraction thereof $15.17 per each $1,000 in valuation or fraction thereof CDB-06 Electrical Permit Fees
Per Unit Fee Schedule (Electrical)

1. Permit Issuance Fee $115.11 $119.59

2. Supplement Permit Issuance Fee $115.11 $119.59

3. For each receptacle/switch/fixture $3.00 $3.11

4. For each circuit $3.00 $3.11

5. For each fixed electrical appliance $12.69 $13.18

6. For each new service to 200 amps $78.39 $81.44

7. For each new service 200 to 1,000 amps $159.03 $165.23

8. For each service upgrade 0 to 1,000 amps $106.10 $110.23

9. For each service upgrade over 1,000 amps $174.69 $181.50

10. For each additional meter $1.74 $1.80

11. For each temporary power pole $63.45 $65.92

12. For each circuit for a sign $63.45 $65.92

13. For each sub-panel $46.66 $48.47

14. For each pool/spa/hot-tub $63.51 $65.98

15. For each electric water heater $12.64 $13.13

16. For each electric heater $12.64 $13.13

17. For each motor 0 to 1 HP $12.64 $13.13

18. For each motor 2 to 10 HP $31.56 $32.79

19. For each motor 11 to 50 HP $63.51 $65.98

20. For each motor 51 to 100 HP $127.13 $132.08

21. For low voltage/wireless per $100 val. $12.64 $13.13

22. For each busway $12.64 $13.13

23. For each miscellaneous $31.56 $32.79

24. For Electrical per val. $14.61 per each $1,000 in valuation or fraction thereof $15.17 per each $1,000 in valuation or fraction thereof

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

80 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
CDB-07 Penalty Fee - Building Division
a. R-1
permit applied* within 10 days - $384.65 processing fee permit applied* 11-30 days-$384.65 processing fee + 100% permit fee permit applied* after 30 days-$384.65 processing fee + 200% permit fee permit applied* within 10 days - $399.65 processing fee permit applied* 11-30 days-$399.65 processing fee + 100% permit fee permit applied* after 30 days-$399.65 processing fee + 200% permit fee b. Others
permit applied* within 10 days - $770.32 processing fee permit applied* 10-30 days - $770.32 processing fee + 100% permit fee permit applied* after 30 days - $770.32 processing fee + 200% permit fee permit applied* within 10 days - $800.36 processing fee permit applied* 10-30 days - $800.36 processing fee + 100% permit fee permit applied* after 30 days - $800.36 processing fee + 200% permit fee CDB-08 Digitizing Processing Fee $4.51/Plan Sheet $4.68/Plan Sheet $2.28 /Document Sheet (Less than 8 1/2" x 14") $2.36 /Document Sheet (Less than 8 1/2" x 14") CDB-09 Administrative Fee $16.27 Min. (or Actual Cost*) $16.90 Min. (or Actual Cost*) CDB-10 Technology Fee $5.37 per application + $.89 per each $1,000 in valuation or fraction thereof$5.57 per application + $.92 per each $1,000 in valuation or fraction thereof CDB-11 Permit Processing Fee $60.22 $62.56
CDB-12 Alternate Method and Material Request (AMMR) Actual Cost Actual Cost CDB-13 New Address Actual Cost Actual Cost
CDB-14 Permit Extension (see note 1) $159.58 $165.80
CDB-15 Temporary Certificate of Occupancy (TCO) Request Actual Cost Actual Cost CDB-16 Revision to approved construction plans Reviews Actual Cost Actual Cost CDB-16 (NEW) Deferred Submittal Plan Check Fee N/A Actual Cost CDB-17 Flat fees for Minor Residential projects (see note 2)

1. Furnace/Water Heater Relocation (see note 3) $742.00 $770.93

2. Kitchen Remodel (Formerly CDB-02 J) $491.18 $510.33

3. Residential door replacements, including garage doors $485.00 $503.91

4. Residential Electrical vehicle charging stations (Single-family and Two- Family dwelling units)
$485.00 $503.91

5. Residential pool demo $728.00 $756.39

6. Residential re-roof $485.00 $503.91

7. Residential window replacements (see note 4) $485.00 $503.91

8. Single Bathroom Remodel (Formerly CDB-02 K) $393.51 $408.85

9. Solar (Photovoltaic) Panels (Formerly CDB-02 I) Exempt from Building Permit Fees. Exempt from Building Permit Fees.

10. Energy Storage System (ESS) for Single-Family and Two-Family Dwellings (San Mateo Consolidated Fire Department (SMCFD)'s Review and Fire Inspection excluded) N/A $450
CDB-18 Appeals Actual Cost* of service with a minimum $1,000 Deposit at the time of filingActual Cost* of service with a minimum $1,000 Deposit at the time of filing * "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" is charged against the required deposit. * "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" is charged against the required deposit.

CDM-01 Miscellaneous Fees

1. Reinspection Fee Actual Cost Actual Cost

2. After hours inspections / inspections outside of normal hours Actual overtime cost, including overhead, 4 hour minimum Actual overtime cost, including overhead, 4 hour minimum

3. Strong Motion Instrumentation and Seismic Hazard Mapping FeePer state of California Department of Conservation latest edition 2004 fees:

Category 1 Construction (all Residential under 3 stories): $13.00 per $100,000 permit valuation;
Category 2 Construction (Residential over 3 stories, all Commercial):
$28.00 per $100,000 permit valuation
Per state of California Department of Conservation latest edition 2004 fees:

Category 1 Construction (all Residential under 3 stories): $13.00 per $100,000 permit valuation;
Category 2 Construction (Residential over 3 stories, all Commercial): $28.00 per $100,000 permit valuation
Required deposit: $50.00 per ton of debris estimated to be generated by project.

Required deposit: $50.00 per ton of debris estimated to be generated by project.

All Projects: If calculation is less than $1,000, then minimum deposit is $1,000.

Residential Projects: If calculation exceeds $10,000, then $10,000 is the maximum deposit.

Commercial Projects: If calculation exceeds $30,000, then $30,000 is the maximum deposit.

5. Request for author's release of plans. $41.32 base fee $42.93 base fee

6. Building Standards Administration Special Revolving Fund (Green Fee)Per current state of California-State and Consumer Services Agency- Building Standards Commission valuation schedule
Per current state of California-State and Consumer Services Agency-Building Standards Commission valuation schedule

7. C&D Application Fee
a. C&D Application Fee - Roof $162.86 $169.21
b. C&D Application Fee - Others $456.44 $474.24

8. Change of Occupancy Actual Cost Actual Cost
Note for Building Fees

1. Per Applicant's request prior to the expiration of the permit.

3. Relocation of a furnace and/or a water heater to a new location.

4. Construction and Demolition Debris Recycling Deposit. Note: A pro-rata deposit refund is made for diversion rates less than required by ordinance.

These fees are subject to annual adjustment to account for annual inflation based on prior year annual % (i.e. FY 24-25 increase will be based on 2023 Annual %) construction cost data from the Building Cost Index (BCI) published by the California Department of General Services, Real Estate Services Division.

2. State Fees (CDB-03 / CDB-10 / CDM-01 (3) / CDM-01 (6))are not included in Flat Fees and will be added to the permit; Flat fees are stacked / combined for multiple proposed projects.

4. Regardless of number or type.

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

81 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
CDH-01 BMR Housing Fees - Monitoring Fees (consistent with Government Code section 65915.3.)
Annual monitoring fee of $72 per unit per year for the term of affordability with reasonable periodic increases for BMR units of affordable housing development agreements starting 7/1/2024.

Annual monitoring fee of $72.00 per unit per year for the term of affordability with reasonable periodic increases for BMR units of affordable housing development agreements starting 7/1/2024.

CDH-02 BMR Housing Fees -Compliance Fees $512 per incident (approximately two hours of staff time), plus the actual cost of City Attorney time.
$527 per incident (approximately two hours of staff time), plus the actual cost of City Attorney time.

CDP-01 Preliminary Project Review Fees
a. City Council/Planning Commission Review Actual Cost* Subject to a minimum $2,000 Deposit at time of filingActual Cost* Subject to a minimum $2,000 Deposit at time of filing b. Staff Review Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-02 General Plan Amendment Fees Actual Cost* Subject to a minimum $5,000 Deposit at time of filingActual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-03 Variance Fees Actual Cost* Subject to a minimum $2,000 Deposit at time of filingActual Cost* Subject to a minimum $2,000 Deposit at time of filing CDP-04 Zoning Text/Map Amendment Fees Actual Cost* Subject to a minimum $5,000 Deposit at time of filingActual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-05 Use Permit Modification Fees
a. Administrative Minor Use Permit Modification (e.g. paint change, landscape modifications, prototype amendments and other improvements per Section 17.06.030 of Title 17 Zoning of Foster City Municipal Code) Actual Cost* Subject to a minimum $500 Deposit at time of filingActual Cost* Subject to a minimum $500 Deposit at time of filing b. Administrative Major Use Permit Modification (e.g. Façade and site improvements)
Actual Cost* Subject to a minimum $3,000 Deposit at time of filingActual Cost* Subject to a minimum $3,000 Deposit at time of filing c. Planning Commission/City Council Use Permit Modification (e.g. Use Permit list, facade upgrades to existing commercial/office buildings) Actual Cost* Subject to a minimum $5,000 Deposit at time of filingActual Cost* Subject to a minimum $5,000 Deposit at time of filing CDP-06 Use Permit Fees
a. Administrative Use Permit (e.g. changes to existing wireless facility)Actual Cost* Subject to a minimum $750 Deposit at time of filingActual Cost* Subject to a minimum $750 Deposit at time of filing b. Planning Commission/City Council Use Permit (e.g. Residential Additions to Waterfront properties, Conditional Use Permits, new wireless facility) Actual Cost* Subject to a minimum $5,000 Deposit at time of filingActual Cost* Subject to a minimum $5,000 Deposit at time of filing c. Use Permit accompanying Specific Development Plan per Section

17.36.050 Title 17 Zoning of Foster City Municipal Code Actual Cost* Subject to a minimum $5,000 Deposit at time of filingActual Cost* Subject to a minimum $5,000 Deposit at time of filing d. Density Bonus Fees per Section 17.86.040 of Title 17 Zoning of Foster City Municipal Code
Actual Cost* Subject to a minimum $500 Deposit at time of filingActual Cost* Subject to a minimum $500 Deposit at time of filing CDP-07 Architectural Review Fees (Excluding Solar Panels, which are exempt) a. Administrative Minor Architectural Review (e.g. windows, decks, fences, front yard paving, skylights, accessory structures)
Actual Cost* Subject to a minimum $750 Deposit at time of filingActual Cost* Subject to a minimum $750 Deposit at time of filing b. Administrative Major Architectural Review (e.g. additions to non-water front homes or residential additions less than 400 SF)
Actual Cost* Subject to a minimum $2,000 Deposit at time of filingActual Cost* Subject to a minimum $2,000 Deposit at time of filing c. Planning Commission Architectural Review per Section 2.28.100 of Title 2 of the Foster City Municipal Code
Actual Cost* Subject to a minimum $5,000 deposit at time of filingActual Cost* Subject to a minimum $5,000 deposit at time of filing CDP-08 Sign Review (Note 1)
a. Administrative Sign Permit $359.99 $370.79
b. Planning Commission Review/Sign Use Permit Actual Cost* Subject to a minimum $1,500 Deposit at time of filingActual Cost* Subject to a minimum $1,500 Deposit at time of filing c. Temporary/Promotional/Public Convenience Sign Review $119.92 $123.52 CDP-08 B Signage violations (each day in which an illegal condition continues is a single violation and each subsequent day such illegal condition continues is a new and separate offense)
First Violation Not exceeding $100 Not exceeding $100
Second violation of the same provision within one year Not exceeding $200 for a second violation of the same provision within one year
Not exceeding $200 for a second violation of the same provision within one year
Third or subsequent violation of the same provision within one yearNot exceeding $500 for a third or subsequent violation of the same provision within one year
Not exceeding $500 for a third or subsequent violation of the same provision within one year
CDP-09 Appeal Fees
a. Appeal by Resident / Applicant Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing b. Appeal by Non-Resident / Non-Applicant Actual Cost* Subject to a minimum $1,500 Deposit at time of filingActual Cost* Subject to a minimum $1,500 Deposit at time of filing CDP-10 Request for Planning Commission Interpretation Fees Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-11 Environmental Assessment Fees Actual Cost* Subject to a minimum $1,000 Deposit at time of filingActual Cost* Subject to a minimum $1,000 Deposit at time of filing CDP-12 Environmental Impact Report Fees Actual Cost* Subject to a minimum $10,000 Deposit at time of filingActual Cost* Subject to a minimum $10,000 Deposit at time of filing CDP-13 Zoning Compliance Letter Actual cost* Subject to a minimum $500 initial deposit Actual cost* Subject to a minimum $500 initial deposit CDP-14 Development Agreement Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit CDP-15 Disposition and Development Agreement Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit CDP-16 Owner Participation Agreement Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

82 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
CDP-17 Subdivision Map Fees
a. Tentative Subdivision Map Fees $850.94 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
$876.47 Application Fee plus Actual Cost
subject to a minimum $10,000 initial deposit*
b. Tentative Parcel Map Fees $850.94 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
$876.47 Application Fee plus Actual Cost
subject to a minimum $10,000 initial deposit*
c. Tentative Subdivision or Parcel Map Revision Fees $850.94 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
$876.47 Application Fee plus Actual Cost
subject to a minimum $10,000 initial deposit*
d. Tentative Subdivision or Parcel Map Extension Fees $850.94 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
$876.47 Application Fee plus Actual Cost
subject to a minimum $10,000 initial deposit*
e. Lot Line Adjustment Fee $499.71 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit*
$514.7 Application Fee plus Actual Cost
subject to a minimum $10,000 initial deposit*
f. Third Party Reviews (NEW) Actual cost* Subject to a minimum $5,000 initial deposit Actual cost* Subject to a minimum $5,000 initial deposit CDP-18 Temporary Use Permit
- MinorEvents/Use(as determinedby the Directorof Community Development Services) including shopping center promotional events; outdoor sales by individual stores within shopping centers; parking lot sales/fairs; outdoor exhibits or open displays; special small scale events sponsored by religious institutions or their supporting clubs, schools or school organizations and clubs or civic groups and clubs Exempt Exempt
- MajorEvents/Uses(as determinedby the CommunityDevelopment Director) including commercial operations by other than civic, school or religious organizations, clubs and institutions
$300.47 (or Actual Cost*) $309.48 (or Actual Cost*)
CDP-19 Code Enforcement
a. 1st Inspection and/or 1st Letter $0.00 $0.00
b. 2nd Inspection and/or 2nd Letter, and each additional inspection / letter thereafter
$252.15, plus actual cost of City Attorney time, until compliance is achieved and when staff is able to recover the associated costs. $259.72, plus actual cost of City Attorney time, until compliance is achieved and when staff is able to recover the associated costs.

CDP-20 Penalty Fee - Planning Division (per Section 17.06.175 of Title 17 of the Municipal Code) a. R-1 $349.85 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
$360.35 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
b. Others $818.48 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.
$843.03 penalty processing fee; Deposit of twice the standard time and materials costs, against which 200% of the actual processing fees will be applied.

CDP-21 Photography / Filming Temporary Use Permit Processing Fee $393.53 $405.34 CDP-22 Interdepartmental Evaluation Committee Review of Proposals by Persons, Businesses and Organizations Located Outside of Foster City (Excluding Land Use and Photography / Filming Temporary Use Permit see CDP-21 above)
$371.92 $383.08
CDP-23 Annual Wireless Facilities Site License (Per Site) Per License Agreement Per License Agreement CDP-24 Sidewalk Vending Permit Fee (one year permit) $100.00 $100.00 CDP-25
(i) first violation. $250.00 $250.00
(ii) second violation within one year of the first violation. $500.00 $500.00 (iii) third violation and each subsequent violation, within one year of the first violation.
$1,000.00 $1,000.00
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.

Sidewalk Vending Administrative Fines
For vending without a valid vending permit the following fines shall be applicable:

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

83 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
CDP-26
(i) first violation. $100.00 $100.00
(ii) second violation within one year of the first violation. $200.00 $200.00 (iii) third violation within one year of the first violation $500.00 $500.00 (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. $500.00 $500.00
CDP-27
Two-unit housing development $2,000.00 $2,000.00
Urban lot split $1,000 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit.
$1,000 Application Fee plus Actual Cost subject to a minimum $10,000 initial deposit.

CDP-28 AB 1332 ADU plans and Pre-Reviewed ADU/JADU PlansStaff recommends charging a fully burdened hourly rate to cover the cost of the staff time spent reviewing ADU/JADU plans.

Staff recommends charging a fully burdened hourly rate to cover the cost of the staff time spent reviewing ADU/JADU plans.

CDP-29 Permit Extension
Administrative Extension $1,000.00 $1,000.00
Planning Commission Extension $500 Application Fee plus Actual Cost subject to a minimum $1,500 initial deposit.
$500 Application Fee plus Actual Cost subject to a minimum $1,500 initial deposit.

CDP-30 Tobacco Retail Permit Fees $400 per year $400 per year Note: 1
FOOTNOTE:

EIR and other technical consultant contracts for a project shall be paid in full by the applicant.

For work requiring an Outside Consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration.

When the account balance goes negative, the request to replenish funds shall be paid in full by the applicant within five (5) business days. If the payment is not paid in full, the project will be put on hold.

The penalty fee for sign installed prior to obtaining a sign permit shall be double the normal fee. Signs erected by nonprofit and community interest groups, senior clubs and organizations deemed "similar" by the Community Development Director shall be exempt from the payment of sign permit application fees. •Deposit-based fees:

Deposit-based application fees are identified as “Actual Cost* Subject to a minimum Deposit at time of filing” under the applicable fee(s). The planning staff draws against these deposited funds at the staff hourly rates adopted by the City Council for actual time spent on the review of the application. The Applicant and/or Property Owner are responsible for any supplemental deposits necessary to cover any costs which were not covered by the initial deposit. If there are funds remaining in the Deposit account at the end of the review of the application, the funds are refunded to the Applicant and/or Property Owner. The deposit amount in the fee schedule depends on whether the specific planning action warrants staff-level approval (administrative) or approval from Planning Commission/City Council and ranges from $500 to $10,000.

SB 9 Applications
Proposals designed and located in strict conformance with approved residential development design prototypical guidelines for property improvements in the specific subdivision shall be charged 1/2 of the usual fee for such improvements.

Initial fees paid at the time of project submittal for all project categories without deposit are considered minimum fees which are not refundable. Initial fees paid for project categories with deposits may be refunded in part, depending upon the amount of staff time and reimbursable expenditures expended on the project as determined by the Director of Community Development. * "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" billing begins after the initial fee payment amount is exceeded by direct and/or indirect costs. "Actual Cost" is charged against the required deposit.

All the fees are subject to annual adjustment to account for annual inflation based on the prior year annual percentage (%). Upon approval, these new and revised fees will be in effect in 60 days.

All fines shall be assessed and imposed in accordance with Section 12.44.100 of the Foster City Municipal Code For all violations of Foster City Municipal Code Chapter 12.44 other than vending without a valid vending permit as outlined above:

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

84 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
POLICE
PD-01 Parking Enforcement Per attached Parking Violations Fine Schedule A, plus $3.00 State parking penalty assessment
Per attached Parking Violations Fine Schedule A, plus $3.00 State parking penalty assessment
PD-02 Vehicle Code Enforcement Per Current CA State Court Approved Bail Schedule Per Current CA State Court Approved Bail Schedule PD-03 Abandoned Vehicle
a. Mark $0.00 $0.00
b. Tow $94.56 $97.40
PD-04 Police Security Alarm Response - Standard Response 1st False Alarm $0.00 $0.00
2nd False Alarm $69.15 $71.20
3rd Alarm $141.95 $146.20
4th Alarm $141.95 $146.20
5th Alarm $291.18 $299.90
6th and 7th Alarm $291.18 $299.90
8th Alarm and thereafter $360.60 each $371.40 each
PD-05 Police Security Alarm Response - High Risk Response 1st False Alarm $0.00 $0.00
2nd False Alarm $852.58 $878.20
3rd False Alarm $1,023.08 $1,053.80
4th False Alarm $1,194.71 $1,230.60
5th False Alarm $1,365.22 $1,406.20
6th False Alarm $1,535.74 $1,581.80
7th False Alarm $1,707.41 $1,758.60
8th Alarm and thereafter $1,877.88 each $1,934.20 each
PD-06 Fingerprinting $46.38/per card $46.38/per card
PD-07 Report copying (including reports for Property Damage, Minor Accident or Injury Accident) a. 1-2 Pages $4.97 $5.10
b. 3-9 Pages $5.57 $5.70
c. 10+ pages $6.91 $7.10
PD-08 DUI Emergency Cost Recovery Government Code-Emergency Response Cost reimbursement up to $12,000
Government Code-Emergency Response Cost reimbursement up to $12,000 PD-09 Solicitor Review
Non-Profit $80.38 $82.80
For-Profit (Initial Review) $241.17 $248.40
For-Profit (Renewal) $80.38 $82.80
PD-10 Enforcement Vehicle Tow $145.59 $150.00
PD-11 Booking Fee Per Current San Mateo County Charges Per Current San Mateo County Charges PD-12 Local Records Check $36.34 $37.40
PD-13 Court Ordered Record Sealing $108.54 $111.80
PD-14 Records check processing Federal / State actual charges Federal / State actual charges PD-15 Concealed Weapon Permit Processing (non-refundable) $281.92 $290.40 PD-16 Planning Application Review and Inspection Services - Police Actual Costs * Actual Costs * PD-17 Video/Audio Duplication $39.91 $41.10
PD-18 Vehicle Repossession Fee -Per California Government Code 26751 $20.00 $20.00 FOOTNOTE: "Actual cost" is the time and materials, including all direct and indirect overhead costs.

FIRE
Per attached San Mateo Consolidated Fire Fees - To Be Published/Updated in Fall Published independently Fall 2025 Published independently Fall 2026

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

85 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27

PUBLIC WORKS
PW-01 Subdivision Fees
Public Works Plan Review and Inspection Fee
a. Commonareaimprovementsin plannedunitdevelopments,including but not limited to recreational facilities (other than those covered by building fees) landscaping and irrigation, underground structures and utilities, curb and gutter, paving, sidewalks and other walkways and lighting.

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency
b. Improvementsincommercialandindustrialdevelopments,includingbut not limited to landscaping, and irrigation, underground structures and utilities, curb and gutter, paving, sidewalks and other walkways and lighting

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency

6.0% of the approved engineers' estimated costs of construction of improvements including a 10% contingency
PW-02 Minor Land Division Fees $157.59 Application Fee plus Actual Cost* $162.32 Application Fee plus Actual Cost* (Requires a deposit of 6% of the estimated construction cost with a $7,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
(Requires a deposit of 6% of the estimated construction cost with a $7,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
PW-03 Transportation Permit Per CA Vehicle Code 35795 - $16.00 per trip or $90.00 annual permitPer CA Vehicle Code 35795 - $16.00 per trip or $90.00 annual permit PWE-06 Encroachment Permit/Banner Move to PWE-06
PWM-06 Sidewalk Maintenance Administration Fee
a. R-1
b. Others
PWE-01 Encroachment Permit/Non-Utility $210.10 Application Fee plus Actual Cost* $216.40 Application Fee plus Actual Cost* (Requires a deposit of 5% of the estimated construction cost with a $1,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
(Requires a deposit of 5% of the estimated construction cost with a $1,000 minimum; deposit will be renewed when it reaches 50% of the original required amount)
PWE-02 Encroachment Permit/Utility $420.25 Application Fee plus Actual Cost* $432.86 Application Fee plus Actual Cost* PWE-03 Encroachment Permit/Utility (Renewal Fee) 15% of Original Permit Fee 15% of Original Permit Fee PWE-04 Encroachment Permit/Temporary placement of a debris box $68.20 $70.25 PWE-05 Work Done Without Encroachment Permit Two (2) times Application Fee plus Actual Cost* Two (2) times Application Fee plus Actual Cost* PWE-06 Encroachment Permit/Banner $210.10 Application Fee plus $750.00 required deposit $216.40 Application Fee plus $750.00 required deposit PWE-07 Business Stormwater Inspection Fee $157.60/inspection with Business License Renewal $158.52/inspection with Business License Renewal PWE-08 PW Research Actual cost* Subject to a minimum $250 initial deposit Actual cost* Subject to a minimum $250 initial deposit FOOTNOTE: * "Actual Cost" is time and materials, including all direct and indirect overhead costs. "Actual Cost" is charged against the required deposit.

Transfer to PW Maintenance
For work requiring an outside consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration.

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

86 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27

PUBLIC WORKS
PWWA-01 Water Service
a. 5/8" X 3/4" $31.30 Prop 218
b. 3/4" $31.30 Prop 218
c. 1" $52.17 Prop 218
d. 1 1/2" $125.20 Prop 218
e. 2" $166.93 Prop 218
f. 3" $365.17 Prop 218
g. 4" $657.30 Prop 218
h. 6" $1,460.67 Prop 218
i. 8" $2,504.00 Prop 218
1) Base Consumption Rate $6.92 Prop 218
2) Single Family Residential Consumption Rate
a) 0-20 ccf bi-monthly $6.80 Prop 218
b) Over 20 ccf bi-monthly $7.56 Prop 218
3) Multi-Family Residential Consumption Rate
a) 0 to 10 ccf per living unit bi-monthly $6.80 Prop 218 b) Over 10 ccf per living unit bi-monthly $7.54 Prop 218 4) Irrigation Customer Consumption Rate
a) Up to 100% of Annual Water Budget $6.80 Prop 218
b) Over 100% of Annual Water Budget $7.76 Prop 218
5) Commercial and Private Fire Line Customer Consumption Rate 1) 3/4" meter $43.82 Prop 218
2) 1" meter $43.82 Prop 218
3) 1 1/2" meter $43.82 Prop 218
4) 2" meter $58.53 Prop 218
5) 3" meter $127.70 Prop 218
6) 4" meter $230.06 Prop 218
7) 6" meter $511.13 Prop 218
8) 8" meter $876.40 Prop 218
Water Service Connection:
a. 3/4" meter
b. 1" meter
c. 1-1/2" meter
d. 2" meter
e. 3" meter
f. 4" meter
g. 6" meter
h. 8" meter
PWWA-02 Water Turn on / Off (Regular Hours: Business Day-8 AM to 3:30 PM.

Non-Regular Hours: All other hours that is not regular hours) a. Account Set Up Fees $45.60 $46.96
1) RUSH Service-on/off within 90 minutes within Regular Hours $55.40 $57.06 2) RUSH Service-on/off within 90 minutes during Non-Regular hours $113.90 $117.32 b. Reconnection charge after disconnection for nonpayment:
1) Regular hours $56.80 $58.50
2) Non-Regular Hours $113.90 $117.32
c. Reconnection charge after voluntary disconnection:
1) Regular hours $56.80 $58.50
2) Non-Regular Hours $113.90 $117.32
d. Customer initiated Turn-on/Turn off (per incident)
1) Regular hours $56.80 $58.50
2) Non-Regular Hours $113.90 $117.32
PWWA-03 Water Meter Test $416.10 deposit is required $428.58 deposit is required a. When a customer requests the test and the meter is found to be defective $0.00 (deposit will be refunded) $0.00 (deposit will be refunded) b. When a customer requests the test and the meter is found NOT to be defective $207/hour (2 Hours minimum) $213/hour (2 Hours minimum) PWWA-04 Water Leak Investigation $207 deposit is required $213 deposit is required a. When a customer requests a water leak investigation, and the leak is found to be on the City side of the water meter
$0.00 (deposit will be refunded) $0.00 (deposit will be refunded) b. When a customer requests a water leak investigation, and the leak is found to be on the Private Property side of the water meter $207/hour (30 minutes minimum) $213/hour (30 minutes minimum) Transfer to Development Fees Schedule
j. Water consumption rates - per hundred cubic feet (ccf) of water consumed a. Private fire protection services - water availability charge (if a meter is not present, the size of the fire service line will be used as a basis for the charge):

Transfer to Development Fees Schedule

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

87 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27
PWWA-05 Water Meters (including installation)
a. 3/4" Actual Meter Cost + $207 / hour installation fee (1 hour minimum)Actual Meter Cost + $213 / hour installation fee (1 hour minimum) b. 1" Actual Meter Cost + $207 / hour installation fee (1 hour minimum)Actual Meter Cost + $213 / hour installation fee (1 hour minimum) c. 1-1/2" Actual Meter Cost + $207 / hour installation fee (1 hour minimum)Actual Meter Cost + $213 / hour installation fee (1 hour minimum) d. 2" Actual Meter Cost + $414/ hour installation fee (1 hour minimum)Actual Meter Cost + $426/ hour installation fee (1 hour minimum) e. 3" Actual Meter Cost + $414/ hour installation fee (1 hour minimum)Actual Meter Cost + $426/ hour installation fee (1 hour minimum) f. 4" Actual Meter Cost + $414/ hour installation fee (1 hour minimum)Actual Meter Cost + $426/ hour installation fee (1 hour minimum) g. 6" Actual Meter Cost + $414/ hour installation fee (1 hour minimum)Actual Meter Cost + $426/ hour installation fee (1 hour minimum) h. 8” and larger Water Meter Actual meter and labor cost Actual meter and labor cost PWWA-06 Fire Hydrant Testing (per hydrant) $283.18 $291.67 PWWA-07 Temporary Hydrant Meter Application Fee & Deposit Application Fee $99.81 $102.80
Meter Deposit $2,500.00 $2,500.00
Meter Deposit processing charge
(based on issuance date of meter)
Return within 1 month or less- charge 10% of deposit
Return within 3 months or less- charge 15% of deposit
Return within 6 months or less- charge 20% of deposit
Return within 12 months or less- charge 25% of deposit
Return within 1 month or less- charge 10% of deposit
Return within 3 months or less- charge 15% of deposit
Return within 6 months or less- charge 20% of deposit
Return within 12 months or less- charge 25% of deposit
PWWA-08 Water Deposit $2,000.00 $2,000.00
PWWA-09 Water Neutrality Review Fee Actual Cost* Subject to a minimum $1,000 Deposit at time of review requestActual Cost* Subject to a minimum $1,000 Deposit at time of review request PWWW-01 Sewer/Wastewater Service
A. Sewer Service Monthly Service Rates:
1) Residential:
a) Single Family $133.49 Prop 218
b) Duplex (per dwelling unit) $112.13 Prop 218
c) Townhouse (per dwelling unit) $112.13 Prop 218
d) Apartment / Condominium (per dwelling unit) $112.13 Prop 218 2) Commercial/Institutional:
a) Low Strength (per unit of water billed) $5.61 Prop 218 b) Medium Strength (per unit of water billed) $8.53 Prop 218 c) High Strength (per unit of water billed) $24.26 Prop 218 B. Sewer Availability Charges
1) Parcels 1 acre and larger (per acre per year) $756.79 Prop 218 2) Parcels less than 1 acre (per acre per year) $386.43 Prop 218 PWM-01 Utility Street Use
PWM-02 Private Refuse Utility Street Use Per Franchise Agreement Per Franchise Agreement PWM-03 Street Lighting | NO | | NO |
PWM-04 Street and Easement Landscaping | CITY- | | CITY- | PWM-05 Median Maintenance | WIDE | | WIDE | PWM-06 Cul-de-Sac Maintenance | ASSESSMENTS | | ASSESSMENTS | PWM-07 Street Sweeping | AT | | AT |
PWM-08 Storm Drainage | THIS | | THIS |
PWM-09 Neighborhood Park Maintenance | TIME | | TIME | PWM-10 Fat, Oil and Grease (FOG) Monitoring Program (Waste Discharge Permit Annual Fee) A. Class A (Industry) Waste Discharge Permit Annual Fee $1,167 per permit pass-through fee from San Mateo Source Control Inspectors
$1,195.01 per permit pass-through fee from San Mateo Source Control InspectorsB. Class B (Restaurant) Waste Discharge Permit Annual Fee $778 per permit pass-through fee from San Mateo Source Control Inspectors
$796.67 per permit pass-through fee from San Mateo Source Control InspectorsC. Analytical Services Fee Actual Cost pass-through fee from San Mateo Source Control InspectorsActual Cost pass-through fee from San Mateo Source Control Inspectors [1] est. gpd = commercial customer's estimated gallons per day of indoor water use
[2] Estimated gallons per day of single family indoor water use [3] Strength factors based on baseline single family strengths of 240 mg/L of BOD and 240 mg/L of TSS
mg/L = milligrams/liter
BOD = Biochemical Oxygen Demand
TSS = Total Suspended Solids
PWM-11 Sidewalk Maintenance Administration Fee
Tier 1 - R1 (Voluntary) $157.59 (Administrative Fee) + Actual Contractor Cost $162.32 (Administrative Fee) + Actual Contractor Cost Tier 2 - R1 (Advanced) and All Other Zones $440.12 (Administrative Fee) + Actual Contractor Cost $453.32 (Administrative Fee) + Actual Contractor Cost

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

88 REF. NO. REVENUE TITLE Fees FY 2025-26 Fees FY 2026-27 City of Foster City/Estero Municipal Improvement District Fiscal Year 2026-27

HUMAN RESOURCES
HR-01 CalOpps
CalOpps Join Fee for Full Membership (One-time set up fee) $6,660.00 $6,660.00 Annual Fee for Full Membership $4,078.00 $4,078.00
Per-Posting Fee (Advertise Only) $582.00 $582.00

MISCELLANEOUS
MISC-01 New Business License Review $45.05 $46.40
State Mandated Disability Access Fee (each Business Tax Application and renewal) Per Senate Bill No. 1186 - $4.00 Per Senate Bill No. 1186 - $4.00 Business License for branches $25/address $25/address
Business License - reprinting $25/certificate $25/certificate MISC-02 Returned Deposit Processing Per CA Civil Code 1719 - $25 for first and $35 for each subsequent deposit
Per CA Civil Code 1719 - $25 for first and
$35 for each subsequent deposit
MISC-03 Check Stop Payment & Replacement Actual costs Actual costs MISC-04 Document Printing and Copying
Photocopying (8 1/2" x 11") $5.30 for 1st page, $0.25 for each additional page $5.50 for 1st page, $0.30 for each additional page Large Documents (11" x 17") $6.30 first page, $1.19 for each additional page $6.50 first page, $1.20 for each additional page Special Maps (24" x 36") $7.40 first page, $2.05 for each additional page $7.60 first page, $2.10 for each additional page Blueprint (36" x 48") $8.40 first page, $2.56 for each additional page $8.70 first page, $2.60 for each additional page MISC-05 Document Certification (Per document) $22.00 $23.00 MISC-06 Records & Information Research $133.00 $137.00
MISC-07 Agenda/Minute Mailing
Agendas $119.00/per year plus postage cost $123.00/per year plus postage cost Agendas & Minutes $192.00/per year plus postage cost $198.00/per year plus postage cost Planning Commission Agendas $115.00/per year plus postage cost $118.00/per year plus postage cost MISC-08 Repair of City Property 100% of Dir. Exp. + Overhead 100% of Dir. Exp. + Overhead MISC-09 Video / Audio Duplication (DVD, VHS, Cassette) Actual costs Actual costs MISC-10
For services requested of City Staff for which no fee is listed in this Master Fee Schedule, the appropriate fee hourly rates for staff time involved in the service
Per attached Schedule C Per attached Schedule C
MISC-11 For services requested of Outside Consultant, the City will be reimbursed at the rate of the consultant plus 15% for administration. Actual costs + 15% Administration Cost Actual costs + 15% Administration Cost MISC-12 Outgoing Wire Fee $73/wire $75/wire
MISC-13 Notary Fee $15 per signature $15 per signature
MISC-14 (NEW) Lien Assessment / Release $75.00 for Each Parcel Liened and/or Assessed $75.00 for Each Parcel Liened and/or Assessed

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

89 REF.

NO. REVENUE TITLE FY 2025-26 Fees FY 2026-27 Fees
Office (including Medical Office) $30.78 $30.96
Retail (including Restaurant and Services) $5.13 $5.16
Industrial (including Research & Development) $30.78 $30.96 Hotel (effective starting 8/20/2022) $10.26 $10.32
DEV-02 Park in Lieu of Land Dedication Fee (Per Section 16.36.100 of Title 16 of Foster City Municipal Code)The fees shall be computed based on fair market value of land that would otherwise have been dedicated, and at a ratio of five acres per one thousand project residents. Project residents shall be computed as provided in Section 16.36.040.

The population that will reside within a proposed project shall be calculated using the following factors and based upon the following formula:

Average Household Size X Number of Dwelling Units Proposed for Construction = Project Resident Population.

The fees shall be computed based on fair market value of land that would otherwise have been dedicated, and at a ratio of five acres per one thousand project residents. Project residents shall be computed as provided in Section 16.36.040.

The population that will reside within a proposed project shall be calculated using the following factors and based upon the following formula:

Average Household Size X Number of Dwelling Units Proposed for Construction = Project Resident Population.
a. Rental – to be multiplied by the net rentable square feet. All net rentable square footage includes measurements from the outside surface of the exterior walls and includes all finished living space. It does not include parking areas, common hallways and stairways, common rooms, building lobbies, balconies, elevator shafts, and utility rooms. On July 1st of each year beginning in 2023 the fee amount shall be automatically adjusted in accordance with the change in the Engineering Construction Cost Index for San Francisco, California, most recently published by Engineering News-Record, for the elapsed time period from May of the previous year to May of the current year.
$76.39/sq ft $75.70/sq ft
b. For Sale – to be multiplied by the habitable area measured from the outside surface of the exterior walls, including all finished living space and common areas inside the dwelling unit. It does not include unheated areas such as parking and balconies. On July 1stof each year beginning in 2023 the fee amount shall be automatically adjusted in accordance with the change in the Engineering Construction Cost Index for San Francisco, California, most recently published by Engineering News-Record, for the elapsed time period from May of the previous year to May of the current year. $48.90/sq ft $48.46/sq ft
Residential Development Projects (per unit) (Note 2)
Single Famility Residential $15,314 $15,406
Mulitfamily Residential $11,941 $12,013
Non-Residential Development Projects (per Sq. Ft.)
Office $6.40 $6.43
Retail $2.41 $2.42
Industrial $3.60 $3.62
Hotel $2.19 $2.20
Single Famility Residential $1,635 $1,645
Mulitfamily Residential $1,275 $1,283
Non-Residential Development Projects (per Sq. Ft.)
Office $1.16 $1.16
Retail $0.65 $0.65
Industrial $0.38 $0.38
Hotel $0.23 $0.23
TRANSPORTATION IMPACT FEE (Note 1)
Residential Development Projects (per unit) (Note 2)
Single Famility Residential $2,178 $2,191
Mulitfamily Residential $1,699 $1,709
Non-Residential Development Projects (per Sq. Ft.)
Office $3.71 $3.73
Retail $2.06 $2.07
Industrial $1.22 $1.22
Hotel $0.73 $0.73
a. 3/4" meter $12,504 $12,579
b. 1" meter $20,884 $21,009
c. 1-1/2" meter $50,020 $50,320
d. 2" meter $66,654 $67,054
e. 3" meter $145,938 $146,814
f. 4" meter $262,613 $264,189
g. 6" meter $583,626 $587,128
h. 8" meter $1,000,433 $1,006,436
1) Single Family Residence $8,866 per dwelling unit (=1 EDU) $8,919 per dwelling unit (=1 EDU) 2) Multi Family $5,541 per dwelling unit (=0.625 EDUs) $5,574 per dwelling unit (=0.625 EDUs) 3) Commercial $8,866 per EDU (as calculated below) $8,919 per EDU (as calculated below) Low Strength Low Strength EDUs = est. gpd[1] ÷ 200[2] x 0.65[3] Low Strength EDUs = est. gpd[1] ÷ 200[2] x 0.65[3] Medium Strength Med. Strength EDUs = est. gpd[1] ÷ 200[2] x 1.00[3] Med. Strength EDUs = est. gpd[1] ÷ 200[2] x 1.00[3] High Strength High Strength EDUs = est. gpd[1] ÷ 200[2] x 2.84[3] High Strength EDUs = est. gpd[1] ÷ 200[2] x 2.84[3] Note 1:

Note 2:

Footnote:

Development fees are subject to annual adjustment based on Engineering News Record Construction Cost Index (ENR CCI).

A seventy-five percent (75%) reduction will be applied for very low and low income affordable units as defined in FCMC sections 17.90.020.P and 17.90.020.X, provided that at least twenty percent (20%) of units in the project are designated as affordable, and a one hundred percent (100%) fee reduction will be applied for very low and low units if at least twenty-five (25%) of the units in the project are designated as affordable. [1] est. gpd = commercial customer's estimated gallons per day of indoor water use [2] Estimated gallons per day of single family indoor water use [3] Strength factors based on baseline single family strengths of 240 mg/L of BOD and 240 mg/L of TSS mg/L = milligrams/liter
BOD = Biochemical Oxygen Demand
TSS = Total Suspended Solids
DEV-07 Water Service Connection (Note1)
DEV-08 Sewer Service Connection (Note 1)
DEV-06
City of Foster City/Estero Municipal Improvement District Master Fees & Service Charges Schedule - Development Fees Fiscal Year 2026-27
DEV-01 Affordable Housing Commercial Linkage Fees for New Nonresidential Development Projects (Note 1) DEV-03 Below Market Rate Housing In-Lieu Fee
DEV-04 PARKS FACILITIES IMPACT FEE (Note 1)
DEV-05 PUBLIC SAFETY IMPACT FEE (Note 1)
Residential Development Projects (per unit) (Note 2)

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

90 Schedule A
Code Section Fine Penalty Description
27600 27600 CVC $38.00 $42.00 MUDGUARD REQ $10/PROOF CORR 22522 22522 CVC $328.00 $42.00 0 OBSTRUCTING HANDICAPPED RAMP 10207G 10.207 (G) UFC $38.00 $42.00 FIRE LANE/POSTED
4457 4457 CVC $123.00 $42.00 STOLEN/LOST CARDS OR PLATES 1032060 10.32.060 MO $38.00 $42.00 FOR SALE SIGN
1044040 10.44.04 MC $38.00 $42.00 LOADING ZONE, COMMERCIAL 225078 22507.8 CVC $328.00 $42.00 DISABLED PARKING
BOUNCE NSF FEE $15.00 $0.00 RETURNED CHECK FEE
1032030C 10.32.030 © MO $38.00 $42.00 RED ZONE
225078C2 22507.8 (C) (2) CVC $328.00 $42.00 PARKED IN HASH MARKS 22500B 22500 (B) CVC $38.00 $42.00 CROSSWALK
41525 41525 CVC $123.00 $42.00 0 FOREIGN REG $10 W/PROOF CORR 1032170 10.32.170 MO $38.00 $42.00 GREEN ZONE - 24 MIN PKG 22500A 22500 (A) CVC $38.00 $42.00 WITHIN AN INTERSECTION 24951B 24951 (B) CVC $38.00 $42.00 TURN SIGNALS $10 W/PROOF CORR 267085 267085 CVC $38.00 $42.00 TINTED WINDOWS $10 W/PRF CORR 1032070 10.32.07 MO $38.00 $42.00 REPAIR ON THE STREET
1044050 10.44.05 MO $38.00 $42.00 PASSENGER LOADING ZONE 22500D 22500 (D) CVC $38.00 $42.00 15 FT. OF FIREHOUSE
1032040 10.32.040 MO $38.00 $42.00 PARKING ON PARKWAYS PROBHIBITED 21210 21210 CVC $38.00 $42.00 BICYCLE ON SIDEWALK
620010 62.00.10 MO $38.00 $42.00 FIRE LANE
27155 27155 CVC $38.00 $42.00 NO GAS CA - $10 W/PROOF OF CORR 22500K 22500 (K) CVC $38.00 $42.00 BRIDGE
1032250 10.32.250 MO $38.00 $42.00 NO STOPPING ZONE
22500E 22500 ( E ) CVC $38.00 $42.00 BLOCKING A DRIVEWAY 932020 9.32.020 EMIDC $38.00 $42.00 NO PKG 1:00 AM TO SUNRISE 21113A 21113 (A) CVC $38.00 $42.00 DRIVE/PARK ON PUBLIC GROUNDS 22502A 22502 (A) CVC $38.00 $42.00 PARKED WITHIN 18IN OF CURB 224206A 224206 (A) CVC $38.00 $42.00 VENDING IN VISTA AREA 22523A/B 22523 A/B CVC $123.00 $42.00 ABANDONED VEHICLE 1032252 10.32.25 MO $38.00 $42.00 RESTR PKG-OVERSIZED VEH 1032252A 10.32.252 (A) MO $38.00 $42.00 RESTRICTED PARKING 5204 5204 CVC $38.00 $42.00 NO TABS-$10 W/PROOF CORRECTION 44625 4462.5 CVC $123.00 $42.00 FALSE EVIDENCE OF REG-$10/PRF 1032150 10.32.150 MO $38.00 $42.00 CITY PROPERTY POSTED 5201F 5201 (F) CVC $38.00 $42.00 PLATES COVERED-$10 W/PRF CORR 1044020C 10.44.020 © MC $38.00 $42.00 PARKING OVER 3 MINUTES 22504 22504 CVC $38.00 $42.00 ON A HIGHWAY
225078C 22507.8 (C) CVC $328.00 $42.00 HANDICAP UNLOADING ZONE 5202 5204 CVC $38.00 $42.00 IMPROP DISPLAY OF PLT-$10/PRF 225078A 22507 .8 (A) CVC $328.00 $42.00 HANDICAPPED PARKING 22500F 22500 (F) CVC $38.00 $42.00 PARKING ON SIDEWALK
22500G 22500 (G) CVC $38.00 $42.00 NEAR EXCAVATION
26709A 26709 (A) CVC $38.00 $42.00 MIRRORS REQ $10 W/PROOF CORR 1049020 10.49.020 MO $38.00 $42.00 COMMERCIAL VEH PROHIBITED XXXX XXXX $0.00 $0.00 ORIGINAL CITATION NOT RECEIVED
5201 5201 CVC $38.00 $42.00 POS OF PLATES $10 W/PROOF CORR 58 58 EMID $38.00 $42.00 NO PKG 1 AM TO SUNRISE
Police Department
Fine & Penalty Schedule FY 2026-2027

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

91 Schedule A
Code Section Fine Penalty Description
Police Department
Fine & Penalty Schedule FY 2026-2027
1032030D 10.32.030 (D) MO $38.00 $42.00 POSTED NO PARKING 22515A 22515 (A) CVC $38.00 $42.00 UNATTENDED RUNNING VEHICLE 5200 5200 CVC $38.00 $42.00 DISPLAY OF PLATES-$10/PROOF ADMINFEE ADMIN FEE $25.00 $0.00 ADMINISTRATIVE FEE
1032140 10.32.140 MO $38.00 $42.00 COMM VEHICLE RESIDENTIAL DIST 21116A 21116 (A) CVC $38.00 $42.00 LEVEE/CANAL BANK
24607A 24607 (A) CVC $38.00 $42.00 REAR REFLECTORS $10 W/PRF CORR 10322251 10.32.225(1)D MO $38.00 $42.00 TRAILER ON CITY STREET 26710 26710 CVC $38.00 $42.00 WINDSHIELD REQ $10 W/PRF CORR 27465B 27465 (B) CVC $38.00 $42.00 LOW TIRE TREAD - $10/PROOF CORR EFFDATE 20110101 $0.00 $0.00 EFFECTIVE DATE OF FINES
22502 22502 CVC $38.00 $42.00 MUST PK IN DIRECT FLOW TRAFF 1017010 10.17.010 MO $38.00 $42.00 FIRE LANE
22502E 22502 (E) CVC $38.00 $42.00 WITHIN 18 INCHES OF CURB 22500L 22500 (L) CVC $328.00 $42.00 PKDED RED ZONE HNDCAP RAMP 226510 22651 (O) CVC $123.00 $42.00 REG EXPIRED - 1 YR & 1 DAY 22520 22520 CVC $38.00 $42.00 ON FREEWAY
22500C 22500 (C) CVC $38.00 $42.00 BETWEEN ZONE AND CURB 1032050 10.32.050 MO $38.00 $42.00 OVER 72 HOURS
1032130 10.32.130 MC $38.00 $42.00 NO STOP/STAND/PARK
10206 10.206 UFC $38.00 $42.00 FIRE HYDRANT/PRIVATE PROPERTY 22505 22505 CVC $38.00 $42.00 POSTED NO PARKING
22500J 22500 (J) CVC $38.00 $42.00 TUNNEL
1032030F 10.32.030 (F) MO $38.00 $42.00 TRAFFIC HAZARD
22500I 22500 (I) CVC $38.00 $42.00 LOADING ZONE
4462B 4462 (B) CVC $123.00 $42.00 WRONG PLATES ON VEH - $10/PROOF 24953A 24953 (A) CVC $38.00 $42.00 TURN SIGNALS $10 W/PRF CORR CORRAMT CORRECTABLE AMT $10.00 $0.00 CORRECTABLE AMOUNT 225001 22500.1 CVC $38.00 $42.00 FIRE LANE
22514 22514 CVC $38.00 $42.00 PARKED W/IN 15 FT OF HYDRANT 22500H 22500 (H) CVC $38.00 $42.00 DOUBLE PARKED
4000A 4000 (A) CVC $123.00 $42.00 UNREG VEHICLE - $10 W/PRF CORR 4461B 4461 (B) CVC $123.00 $42.00 IMPROPER USE OF TABS - $10/PROOF 5201G 5201 (G) CVC $38.00 $42.00 OBSTRUCT PLATE
4464 4464 CVC $38.00 $42.00 ALTERED LIC PLATE $10/PROOF 1032251D 10.32.251(D) MO $38.00 $42.00 TRAILER/BOAT PUBLIC ST 22521 22521 CVC $38.00 $42.00 PKD W/IN 7 1/2 FT OF R/R TRACK 1032251E 10.32.251(E) MO $38.00 $42.00 CAMPER EQUIPMENT 1032020 10.32.020 MO $38.00 $42.00 RESTRICTED PARKING
1232020 12.32.020 FCMD $38.00 $42.00 NO PKG 1:00 AM TO SUNRISE 4458 4458 CVC $123.00 $42.00 STOLEN PLATE
225111 (NEW) 22511.1 CVC $38.00 $42.00 NO PARKING UNLESS VEHICLE IS CHARGING 22652 (NEW) 22652 CVC $328.00 $42.00

VEHICLES PARKED IN EV SPACES

DESIGNEDATED FOR PERSONS WITH

DISABILITIES SUBJECT TO TOWING

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

92 FY 2026-27 Staff Billing Hourly Rate Schedule C
Department/Division
FY 26-27 Hourly
Rate Department/Division
FY 26-27 Hourly
Rate
Administrative Services Department Parks & RecreaƟon
Administrative Assistant $150 Administrative Assistant II $287 Administrative Services Director $334 Building Services Coordinator $252 HR Manager $197 Director of Parks & Recreation $638
Human Resources Analyst $169 Irrigation Technician $295 Human Resources Technician $140 Management Analyst I $371 Information Technology Manager $259 Management Coordinator $295 Sr. Human Resources Analyst $178 Office Assistant I $181 Sr. Human Resources Technician $204 Parks Maintenance Lead Worker $295 Sr. Systems Analyst $216 Parks Maintenance Manager $409 Technology Analyst I $147 Parks Maintenance Worker I $242 City Clerk/CommunicaƟons Department Parks Maintenance Worker II $267 Communications Director / City Clerk $315 Parks Supervisor $371 Communications Manager $153 Recreation Coordinator $281 Deputy City Clerk $157 Recreation Manager $409
Office Assistant $89 Public Works Department
Social Media / Communication Assistant $142 Administrative Assistant II $225 City Manager Department Associate Civil Engineer $321
City Manager $421 Building and Vehicle Maintenance Manager $320 Management Assistant $127 Building Maintenance Lead Worker $230 Assistant City Manager $328 Building Maintenance Worker I $196 Management Analyst I $191 Building Maintenance Worker II $217 Principal Management Analyst $243 Director of Public Works $513 Senior Management Analyst $213 Engineering Manager $382 Equipment Maintenance Worker $206
Fleet Supervisor $234
Administrative Assistant $182 Management Analyst II $321 Assistant Planner $216 Mechanic I $228
Associate Planner $238 Prinicpal Management Analyst $368 Building Inspector $224 Public Works Maintenance Lead Worker / Connection Control Coordinator $234
Building Permit Technician I $156 Public Works Maintenance Manager $371 Building Permit Technician II $163 Public Works Maintenance Superintendent $320 Chief Building Official $309 Public Works Maintenance Worker I $192 Code Enforcement Officer $159 Public Works Maintenance Worker II $213 Community Development Director $414 Senior Engineer $371 Economic Development Manager $313 Senior Engineering Technician $245 Housing Coordinator $0 Vehicle Maintenance Worker I $206 Housing & Sustainability Manager $290
Sr. Management Analyst $259
Management Assistant $168 Management Analyst I $141
Plan Examiner $271 Police Captain $286
Planning Manager $309 Police Chief $320
Senior Bldg Inspector $246 Police Corporal $199
Senior Planner $251 Police Dispatch Supervisor $187
Police Dispatcher $154
Police Lead Dispatcher $174
Accountant I $125 Police Lieutenant $252
Administrative Assistant II $143 Police Officer $173
Assistant Finance Director $260 Police Records Specialist $108 Finance Director $317 Police Records Supervisor $147
Financial Services Manager $233 Police Recruit $152
Senior Accountant $168 Police Sergeant $217
Accounting Specialist $105 Sr. Comm. Services Officer $111 Sr/Accounting Specialist $111 Reserve Officer $69
Community Development Department
Police Department
Financial Services Department
Staff billing rates were updated in FY 2022-2023 as part of the May 2023 Willdan Financial Services User Fee Study and will adjust annually thereafter for cost escalation. A copy of the User Fee Study can be found at https://www.fostercity.org/finance/page/master-fees-and-service-charges-schedule. Subsequent years increase is based of San Francisco-Oakland-Hayward, CA Decemeber CPI-U of previous year.
]

7.1 Attachment 3 - Proposed Master Fees and Service Charges Schedule for FY 2026-27

93 DATE: April 20, 2026

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

FROM: Sofia Mangalam, Community Development Director
Ken Hira, Consultant Kosmont Companies
DEPARTMENT: Community Development, City Manager
SUBJECT: UPDATE #1 ON REAL ESTATE ECONOMIC MARKET ANALYSIS

RECOMMENDATION
It is recommended that the City Council, by Minute Order, receive and accept an update on the Real Estate Economic Market Analysis and provide direction to staff on any additional areas for further analysis and opportunity sites to be evaluated for potential development, redevelopment, or repurposing.

EXECUTIVE SUMMARY
The City of Foster City has initiated a Real Estate Economic Market Analysis (“Study”) to provide the City with a clear, data-driven understanding of current and emerging real estate and economic conditions in response to changing market dynamics, evolving demographic trends, and long-term development pressures. The scope of the Study includes five (5) main components, including:

1. Citywide Real Estate Economic Market Assessment

2. Population and Psychographic Analysis

3. Identify Future Economic Development Needs

4. City Council Engagement and Review Process

5. Stakeholder and Community Engagement
This first update (Update #1) includes Task #1 Citywide Real Estate Economic Market Assessment, and summarizes work completed to date. The update includes a population

8.1 8.1 Staff Report

94 and psychographic analysis, evaluation of the City’s economic base, assessment of office, industrial/flex (R&D), retail, and hotel market conditions, and analysis of visitation patterns and retail spending leakage. The baseline market conditions and findings presented in this update will inform the next phase of work, which includes projecting future economic development needs, identifying opportunity sites, recommending strategies to strengthen the City’s business environment, and evaluating infrastructure investments needs to support long-term economic vitality.

BACKGROUND
On September 22, 2025, staff issued a Request for Proposals (RFP) from qualified consultants to conduct an independent professional Real Estate Economic Market Analysis to assess market trends and cycles, demographic trends, supply and demand dynamics, economic indicators, evaluate future needs, and provide strong baseline data that will be used to inform actionable strategies to guide sustainable growth and economic development.

On February 2, 2026, the City Council approved an agreement with Kosmont Companies (Kosmont) to conduct an independent professional Real Estate Economic Market Analysis.

On February 10, 2026, during the City Council retreat, Ken Hira, President of Kosmont, presented a brief overview of the study’s scope and methodology. Councilmembers asked questions following the presentation. In March, one-on-one meetings were held with individual Councilmembers and the consultant to better understand their priorities and vision for the study.

Subsequently, Kosmont started work on its data collection pertaining to the City using a variety of sources and analytical tools. As per the scope of work of the RFP, Kosmont will be providing in person updates at City Council meetings to present progress findings and gain Council feedback at key stages of the Study. This staff report is Update #1 from Kosmont following their market and demographic assessment. Please note that some figures and data may be revised prior to the final report as updated information becomes available.

ANALYSIS
As discussed earlier, the scope of the study includes five (5) main components. This staff report details the Kosmont’s work on Tasks 1 and 2 as detailed out below:

1. Citywide Real Estate Economic Market Assessment
Conduct a comprehensive real estate economic market analysis to identify current economic landscape, market trends and cycles including market leakage, demographic profile, supply and demand dynamics across commercial, office, retail, life science, and mixed-use sectors, and business climate indicators.

8.1 8.1 Staff Report

95 Develop a baseline inventory of existing properties in these sectors within Foster City.
Evaluate key market indicators such as vacancy rates, lease rates, and tenant mix.
Analyze market leakage to identify opportunities to retain and recapture spending within Foster City.
Identify and evaluate geographic constraints within the regional context that may impact local economic development.
Identify unmet demand, oversupply, and emerging trends across sectors. Identify opportunities for growth and investment.
Benchmark Foster City’s market performance against comparable cities.

2. Population and Psychographic Analysis
Prepare a comprehensive population and psychographic analysis, including a study of demographic profile and trends, evaluating consumer values, interests, lifestyle, etc., to understand consumer needs and behavior. The analysis should evaluate Foster City’s trade area, with a focus on market demand and supply and other constraints for commercial and retail uses, such as, but not limited to, grocery stores and restaurants.

Since meeting with the City Council in February and March, Kosmont used various sources, including CoStar, ESRI, Placer Ai, city documents etc., to conduct a citywide real estate economic market assessment, along with a population and psychographic analysis. This report provides an update on the analysis completed to date. Please note that this is a working draft, and some of the figures and data may get refined as more information becomes available.
Utilizing ESRI and other sources to prepare a population and psychographic analysis including population, household incomes, ethnicity, housing preferences, educational attainment, employment by industry. It utilized ArcGIS Tapestry (advanced demographic dataset) that groups residential areas into 60 different segments based on shared demographic characteristics.
Kosmont conducted a market analysis to define current economic landscape, market trends, including supply and demand dynamics across commercial, office, retail, life science, hospitality sectors. Included are the following subtasks:
oDeveloped baseline inventory of existing properties in referenced sectors and key market indicators, such as vacancy rates, lease rates, and tenant mix.
oBenchmarked economic performance of neighboring Bay Area cities. oUtilized Placer.ai to analyze trade area annual dollar demand for retail goods and services.
Kosmont utilized Placer.ai to analyze resident and visitor spending/travel patterns. Kosmont analyzed sales data to understand relative performance of shopping

8.1 8.1 Staff Report

96 centers and taxable sales per square foot (PSF) to measure the health of the centers.

Attachment 1 includes the data and analysis compiled so far. A summary of key highlights from the analysis completed to date is included below:

Summary of Findings
Population and Psychographic
oThe City has among the highest average household income (~$250,000) and education levels (~77% college degree) in the County. oWith over 50% of the population identifying as Asian, the majority of restaurants are Asian oriented, presenting opportunities for other type of cuisines such as traditional seafood, steak, and other ethnic offerings. oThe City is characterized as a family friendly community with open space and recreational opportunities.
Economic Base
oThe City has a strong commercial real estate market sector supporting approximately 20,000 high paying jobs, with a moderate job/housing imbalance of 1.8:1.
Office and Industrial/R&D Market
oThe office market was hard hit by the pandemic with vacancy increasing to approximately 15%, but much lower than neighboring areas. oIndustrial/Flex market has seen strong leasing activity, low vacancy and steady rent growth.
Hotel Market
oHotel market within a 3-mile radius has not fully recovered from pandemic- related declines in occupancy and average daily room rates (ADR), making new development challenging. However, current hotels in the City have exceeded pre-pandemic performance levels.
Retail Market
oRetail commercial market space is limited with only 600,000 SF and rents are high (above $40 PSF/yr), creating challenges for small businesses – Costco is the major regional draw generating substantial City retail sales. oCity lacks a defined downtown core and has limited upscale retail, entertainment and dining options. There is limited available space, except for Edgewater and the 58,000 SF former Orchard Supply Store. Multifamily Market Conditions
oStrong 7,000-unit market with average rent of $3,500 per month and only 2% vacancy.
Retail Center Sales trends
oCitywide retail sales have grown 20% (about 4% annually keeping up with inflation)
oFoster Square retail has seen most growth due to its slow lease up after completion in 2020
oMetro Center also showed solid growth in taxable sales (up approximately

8.1 8.1 Staff Report

97 42%)
oOther retail centers showed minimal growth over the same period. Opportunities to retain and recapture spending
oA significant portion of resident spending occurs at Bridgepointe Center in San Mateo, which provides a wide range of retail, entertainment and restaurants in close proximity.
oThere is significant retail leakage in spending in clothing, full and limited- service restaurants, bars, and home furnishings.
Consumer Trends
oSales in local stores have grown slowly as online shopping continues to capture a greater share of consumer goods spending.
oE-commerce now captures over 23% of total U.S. retail sales today – reducing demand for brick-and-mortar stores in the City by estimated 250,000 SF or more.
Geographic Constraints
oThe City is geographically constrained, functioning as an island with three main entrances/exits and no direct mass transit options. COVID-19 Impact
oThe pandemic resulted in a 60% drop in visitors and 75% drop in commuters to the City.
oVisitor activity rebounded following the pandemic within about two years, however, onsite workers are still 20-30% below the 2019 level due to the continued prevalence of remote work.

STAKEHOLDER AND COMMUNITY ENGAGEMENT
Community and stakeholder engagement is a critical component of the Study and will help ensure that the analysis and recommendations reflect the needs and priorities of residents, businesses, and the City’s daytime population. The engagement process will begin with an in-person community meeting scheduled for April 27, 2026, followed by an online community meeting to gather broader community input (see Attachment 2- flyer for the meeting). There will be an online community meeting in the month of May for those who are unable to attend the in-person community meeting.

In addition, focus group discussions will be conducted with key stakeholders, including property owners, brokers, and developers; major employers and business groups; and community organizations. Input received through these engagement efforts will be documented, incorporated into the analysis, and presented to the City Council as part of Update #2.

OPPORTUNITY SITES
Another major component of the Study is the evaluation of Opportunity Sites. The consultant team will assess selected sites across the City to identify their potential for

8.1 8.1 Staff Report

98 development, redevelopment, or repurposing based on market conditions, infrastructure capacity, and community priorities. Staff is seeking input and direction from the City Council on which sites should be included in this evaluation so that the analysis reflects Council priorities and supports identification of locations with the greatest potential to advance the City’s long-term economic development goals.

Policy Direction Questions for the City Council

1. Following the first update from the consultant, are there any areas that the City Council would like staff and consultant team to further explore or refine as we move into the next phase of the Study?
This information will then be accommodated and included in the next update to the City Council, tentatively scheduled for June 2026.

2. Are there any sites/parcels that should be included in the evaluation of Opportunity Sites?
California Environmental Quality Act
This action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (general rule for projects that have no direct or reasonably foreseeably indirect physical change to the environment).

FISCAL IMPACT
There is no fiscal impact associated with receiving Update #1 as the agreement with Kosmont has already been approved and appropriated by the City Council.

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

Attachment 1 – Draft Real Estate Market Analysis Data
Attachment 2 – In-person Community Meeting Flyer

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99 Working Draft
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

CITY OF FOSTER CITY

REAL ESTATE ECONOMIC MARKET ANALYSIS - DATA
CITY COUNCIL UPDATE PRESENTATION 4-20-26

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BACKGROUND
Foster City is undertaking a comprehensive Real Estate Economic Market Analysis to better understand current market conditions, future economic trends, and opportunities to strengthen the local economy. The study will inform City Council decision-making and help guide future land use, economic development, and business-attraction strategies.

On February 2, 2026, The City Council approved an agreement with Kosmont Companies to conduct the analysis and provide advisory recommendations.

This study will help Foster City:
 Understand current real estate and economic conditions  Identify unmet market demand and emerging trends
 Evaluate the performance of existing commercial areas  Explore opportunities to support local businesses
 Inform long-term planning and economic policy decisions Note: It is important to note that most of the market data shown in this draft report reflects conditions as of 12/31/25. All of the data tables are expected to be updated as part of the final report deliverable.

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SCOPE OF THE STUDY
 Population and Psychographic Analysis
 Population & Household Demographics
 Housing Data
 Employment Data
 Citywide Real Estate Economic Market Assessment
 Office, retail, Industrial/Flex, Multi-family, Hospitality markets  Market trends
 Visitation Trends and Retail Leakage
 Retail & Shopping Centers
 General fund tax revenues - Sales Tax
 Retail Center Sales trends
T oday’s presentation- Update #1 Update #2 (T entative June 2026) ▪ Opportunity Sites
▪ Findings from Stakeholder and
Community Engagement

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SCOPE OF THE STUDY
Population and Psychographic Analysis
Real Estate Economic
Market Assessment
Retail &
Shopping
Centers
People
Performance
Buildings/Retail
Who lives here
and how do they
spend?
Is the current
market
meeting their
demand?
Where are the key
opportunities
within shopping
centers?

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

EXECUTIVE SUMMARY FINDINGS

POPULATION AND PSYCHOGRAPHIC ANALYSIS

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PRELIMINARY

FINDINGS / OPPORTUNITIES / CHALLENGES
 City has among the highest average household income (~$250,000) and education levels (~77% college degree) in the County.
 With over 50% of the population identifying as Asian, the majority of restaurants are Asian oriented, presenting opportunities for other type of cuisines such as traditional seafood, steak, and other ethnic offerings.  The City is characterized as a family friendly community with open space and recreational opportunities.

Covid Impact
 The pandemic resulted in a 60% drop in visitors and 75% drop in commuters to the City.  Visitor activity rebounded following the pandemic within about two years, however, onsite workers are still 20-30% below the 2019 level due to the continued prevalence of remote work.

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PRELIMINARY

FINDINGS / OPPORTUNITIES / CHALLENGES
 Economic Base
• City has a strong commercial real estate market sector supporting approximately 20,000 high paying jobs, with a moderate job/housing imbalance of 1.8:1.
 Office and & Industrial Market Trends
• The office market was hard hit by the pandemic with vacancy increasing to approximately 15%, but much lower than neighboring areas.
• Industrial/Flex market has seen strong leasing activity, low vacancy and steady rent growth.  Hotel Market
• Hotel market within a 3-mile radius has not fully recovered from pandemic-related declines in occupancy and average daily room rates (ADR), making new development challenging. However, current hotels in the City have exceeded pre-pandemic performance levels.

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PRELIMINARY

FINDINGS / OPPORTUNITIES / CHALLENGES
 Retail Market Conditions
 Retail commercial market space is limited with only 600,000 SF and rents are high (above $40 PSF/yr), creating challenges for small businesses – Costco is the major regional draw generating substantial City retail sales.
 City lacks a defined downtown core and has limited upscale retail, entertainment and dining options. There is limited available space, except for Edgewater and the 58,000 SF former Orchard Supply Store.  Multifamily Market Conditions
 Strong 7,000 unit market with average rent of $3,500 per month and only 2% vacancy.  Opportunities to retain and recapture spending
 A significant portion of resident spending occurs at Bridgepointe Center in San Mateo, which provides a wide range of retail, entertainment and restaurants in close proximity.  There is significant retail leakage in spending in clothing, full and limited-service restaurants, bars, and home furnishings.

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PRELIMINARY

FINDINGS / OPPORTUNITIES / CHALLENGES
 Consumer Trends
• Sales in local stores have grown slowly as online shopping continues to capture a greater share of consumer goods spending.
• E-commerce now captures over 23% of total U.S. retail sales today – reducing demand for brick-and- mortar stores in the City by estimated 250,000 SF or more.  Geographic Constraints
• The City is geographically constrained, functioning as an island with three main entrances/exits and no direct mass transit options.

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

POPULATION & HOUSEHOLD DEMOGRAPHICS

POPULATION AND PSYCHOGRAPHIC ANALYSIS

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WHY POPULATION AND PSYCHOGRAPHIC ANALYSIS?
 Demographics + psychographics = True demand profile
 Tenant mix optimization
 Local spending habits
 Cultural preferences
 Time-of-day demand (daytime populations vs evening residents)  Daytime population – prioritize quick-service, café’s  Diverse population – include ethnic and specialty food tenants Kosmont utilized ESRI and other sources to prepare a population and psychographic analysis including population, household incomes, ethnicity, housing preferences, educational attainment, employment by industry

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CITY LIMITS AND
COUNTY
Foster City
City Limits
Source: ESRI Business Analyst Online
(Accessed February 2026)
San Mateo
County Limits

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POPULATION & INCOME

FOSTER CITY IS JOB RICH VS NEIGHBORING CITIES
2025 Foster City
City
Belmont
City
Redwood City
City
San Mateo
City
Population 34,689 28,726 87,248 108,966
Daytime Population 44,071 (+27%) 24,667 (-14%) 94,448 (+8%) 117,675 (+8%) Households 13,021 10,710 31,102 41,251
Average HH Size 2.64 2.61 2.73 2.61
Median Age 40.8 41.5 38.3 39.6
% Bachelor's Degree or Higher 76.8% 71.6% 57.6% 59.9%
% Asian/Pacific Islander Origin 57.7% 33.2% 18.8%* 31.0%** Per Capita Income $95,043 $103,577 $85,400 $83,999
Median HH Income $199,174 $209,661 $161,130 $158,885
Average HH Income $253,137 $277,335 $239,414 $221,780
Source: ESRI Business Analyst Online (Accessed February 2026) Notes: *35.8% of residents in Redwood City report being some other race or two or more races. Hispanic origin in Redwood City is 36.3%. **28.1% of residents in San Mateo report being some other race or two or more races. Hispanic origin in San Mateo is 25.9%. Comparatively, Foster City and Belmont have populations with low Hispanic origin and sizable Asian/Pacific Islander origins.

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POPULATION & INCOME

FOSTER CITY HAS HIGHER EDUCATION AND HOUSEHOLD INCOME
2025 Foster City
City
San Mateo
County
California
State
Population 34,689 785,591 39,563,914
Daytime Population 44,071 802,630 39,400,957
Households 13,021 272,778 13,785,669
Average HH Size 2.64 2.85 2.80
Median Age 40.8 40.8 38.4
% Bachelor's Degree or Higher 76.8% 56.0% 39.2%
% Asian/Pacific Islander Origin 57.7% 33.7% 16.8%
Per Capita Income $95,043 $82,647 $50,026
Median HH Income $199,174 $162,855 $101,136
Average HH Income $253,137 $237,890 $143,246
Source: ESRI Business Analyst Online (Accessed February 2026)

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ASIAN POPULATION
FOSTER CITY HAS ALMOST 60% ASIAN POPULATION
2024 Foster City
City % of Total Population % of Total Asian Pop.

Total Population* 32,792 100.0% -
Total Asian Population 17,838 54.4% 100.0%
Chinese 7,982 24.3% 44.7%
Indian 4,694 14.3% 26.3%
Filipino 1,440 4.4% 8.1%
Japanese 1,312 4.0% 7.4%
Korean 630 1.9% 3.5%
Taiwanese 514 1.6% 2.9%
Source: 2024 ACS 5-Year Estimates (Accessed February 2026) Notes: *Number is from 2024 ACS, not ESRI estimates (for consistency).

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5%
6%
7%
10%
12%
18%
15%
11%
8%
6%
2%
5%
6% 6%
11%
14%
15%
13%
12%
10%
6%
2%
5%
6% 6%
13%
15%
14%
12% 12%
10%
5%
2%
0-4 5-9 10-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Foster City
San Mateo County
California
Median Age
Foster City 40.8
San Mateo County 40.8
California 38.4
POPULATION BY AGE - 2025

FOSTER CITY AND SAN MATEO COUNTY HAVE SIMILAR AGE DISTRIBUTION Source: ESRI Business Analyst Online (Accessed February 2026)

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POPULATION BY EDUCATIONAL ATTAINMENT - 2025

FOSTER CITY HAS SIGNIFICANTLY HIGHER LEVELS OF EDUCATIONAL 3%
6%
14%
36%
41%
8%
15%
21%
31%
25%
14%
21%
26% 25%
15%
No high school diploma High school graduate or
equivalent
Some college or
Associate's degree
Bachelor's degree Graduate or prof. degree
Foster City
San Mateo County
California
Source: ESRI Business Analyst Online (Accessed February 2026); Notes: Population observed includes people aged 25 and older. % Bachelor’s Degree or Higher
Foster City 77%
San Mateo County 56%
California 39%

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4% 2% 2%
4% 6% 6%
13% 14%
50%
5% 3% 3%
6%
8% 8%
15% 13%
41%
7%
5% 5%
8%
13% 12%
18%
12%
21%
<$15K $15-$25K $25-$35K $35-$50K $50-$75K $75-$100K $100-$150K $150-$200K $200K+ Foster City
San Mateo County
California
HOUSEHOLDS BY INCOME - 2025
50% OF FOSTER CITY HOUSEHOLDS EARN >$200K ANNUALLY
HH Income Median Average
Foster City $199,174 $253,137
San Mateo County $162,855 $237,890
California $101,136 $143,246
Source: ESRI Business Analyst Online (Accessed February 2026)

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ARCGIS TAPESTRY DEMOGRAPHICS
Kosmont utilized ArcGIS Tapestry (advanced demographic dataset) that groups residential areas into 60 different segments based on shared demographic characteristics. The predominant segments are described on following slide.

Kosmont examined data for Foster City, San Mateo and Redwood City:
 Foster City population is ~60% Asian descent compared to ~30% in San Mateo and ~20% in Redwood City  Foster City is primarily comprised of three segments – “T op Tier” (50%), “Urban Chic” (25%) and “Laptops & Lattes” (20%)
 San Mateo and Redwood City have similar segments plus a high concentration of “Uptown Lights” with each segment representing approximately 20% of their populations

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ARCGIS TAPESTRY SEGMENTS
Top Tier segment is typically high net worth older married couples with advance professional degrees, many of whom work from home. They shop at upscale/exclusive retailers and fine dining restaurants. They are politically active and contribute to many charitable organizations.

Urban Chic is typically younger married couples with children at home. They are highly educated and work in technology, education and health care. Above average income and net worth, but 50% live in multi-family condos, townhomes, etc. They frequent health clubs and shop at organic food stores.

Laptops & Lattes are typically unmarried young professionals (e.g. Millennials) who live in rental units and shop online extensively. They travel frequently, buy hardback books, buy tech gadgets, seek entertainment options and enjoy fine dining and fashion.

Uptown Lights are tech savvy younger couples (Gen Z and Gen X) with almost 50% having college degrees. They work primarily as service professionals and earn median incomes, and live in multi-family housing. They dine out frequently and order meals for home delivery.

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

HOUSING DATA

POPULATION AND PSYCHOGRAPHIC ANALYSIS

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KOSMONT COMPANIES | 22Source: Zillow.com (Accessed February 2026)

HOME VALUE HISTORY

FOSTER CITY HOME VALUES EXCEED COUNTY AND STATE AVERAGES $1.80M
$755K
$1.53M
$2M
$2M

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CITY CENSUS TRACTS
Foster City is comprised of 9 U.S. census tracts:
 6081
 6082
 6083
 6080.01
 6080.02
 6080.24
 6080.25
 6080.13
 6080.23

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CITY HOUSING OCCUPANCY
HOUSING MARKET HASVACANCY OF 4% - INDICATING STRONG DEMAND Source: U.S. Census Bureau, 2024 American Community Survey 5-Year Estimates Data Profile (Accessed March 2026) 2024 T otal Housing Units Owner-Occupied Units Renter-Occupied Units Vacant Units Census Tracts
6080.01 1,514 561 882 71
6080.02 1,315 980 296 39
6080.13 1,493 774 652 67
6080.23 830 798 95 32
6080.24 1,327 891 427 9
6080.25 2,965 386 2,337 242
6081 1,324 887 403 34
6082 1,437 747 642 48
6083 1,412 677 658 77
Foster City T otal 13,617 6,701 6,392 619

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YEAR HOUSING UNITS BUILT
Source: U.S. Census Bureau, 2024 American Community Survey 5-Year Estimates Data Profile (Accessed January 2026) 2024 T otal Occupied
Units 2020 or later 2000 to 2019 1980 to 1999 1960 to 1979 1959 or earlier Census Tracts
6080.01 1,514 0 230 251 1007 26
6080.02 1,315 0 5 115 1,184 11
6080.13 1,493 0 36 905 425 127
6080.23 830 0 0 148 670 12
6080.24 1,327 0 111 394 797 25
6080.25 2,965 146 988 617 1025 189
6081 1,324 14 37 126 1107 40
6082 1,437 0 123 182 1076 56
6083 1,412 0 67 204 1125 16
T otal 13,617 160 1,597 2,942 8,416 502

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CITY NEW HOUSING SUPPLY BY AGE
160
1597
2942
8416
502
0 1000
2000
3000
4000
5000
6000
7000
8000
9000
2020 or later 2000 to 2019 1980 to 1999 1960 to 1979 1959 or earlier Foster City
Foster City has added about
15% to its supply of housing
in past 25 years. However,
~70% of supply more than
50 years old

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CITY HOME OWNERSHIP VALUES
2024
Less than $199,000 $200,000 to $499,999 $500,000 to $990,999 $1,000,000 to $1,999,999 $2,000,000 or more
Census Tracts
6080.01 16 0 145 190 210
6080.02 13 0 54 529 384
6080.13 30 0 84 317 343
6080.23 7 13 0 148 535
6080.24 19 0 164 416 292
6080.25 24 0 0 362 0
6081 26 40 126 379 316
6082 13 18 3 409 304
6083 42 0 21 115 499
City T otal 190 71 597 2,865 2,883

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CITY HOUSING MOVE-IN TIMEFRAME
Occupied housing
units
Moved in 2023 or
later
Moved in 2020 to
2022
Moved in 2010 to
2019
Moved in 2000 to
2009
Moved in 1990
to 1999
Moved in 1989
and earlier
Census
Tracts
6080.01 1,443 109 499 506 103 104 122
6080.02 1,276 68 185 452 209 126 236
6080.13 1,426 109 411 412 157 141 196
6080.23 798 28 115 184 134 98 239
6080.24 1,318 22 310 430 279 172 105
6080.25 2,723 385 1,214 886 188 14 36
6081 1,290 93 302 342 169 157 227
6082 1,389 43 278 503 277 62 226
6083 1,335 97 382 493 121 54 188
City T otal 12,998 954 3,696 4,208 1,637 928 1,575
Note: High move in recent years due to extensive multifamily development (rental units)

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EMPLOYMENT DATA
CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

POPULATION AND PSYCHOGRAPHIC ANALYSIS

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EMPLOYMENT BY INDUSTRY

PROFESSIONAL / SCIENTIFIC JOBS ARE HIGHEST CONCENTRATION Resident Employed Population (Age 16+)
Sector Share
Professional, Scientific, and Technical Services 20.0%
Information 12.1%
Health Care and Social Assistance 11.9%
Manufacturing 7.0%
Accommodation and Food Services 6.6%
Educational Services 6.3%
Retail Trade 5.9%
Finance and Insurance 5.2%
Administration & Support, Waste Management and Remediation 4.8% Transportation and Warehousing 3.6%
Construction 3.2%
Wholesale Trade 3.0%
Other Services (excluding Public Administration) 2.8%
Public Administration 2.1%
Management of Companies and Enterprises 1.7%
Arts, Entertainment, and Recreation 1.6%
Real Estate and Rental and Leasing 1.4%
Utilities 0.4%
Agriculture, Forestry, Fishing and Hunting 0.4%
Workers Employed in Study Area (Age 16+)
Sector Share
Professional, Scientific, and Technical Services 46.9%
Information 8.9%
Administration & Support, Waste Management and Remediation 7.2% Accommodation and Food Services 6.8%
Health Care and Social Assistance 5.0%
Transportation and Warehousing 4.7%
Retail Trade 4.1%
Finance and Insurance 3.3%
Educational Services 3.2%
Construction 1.9%
Management of Companies and Enterprises 1.6%
Arts, Entertainment, and Recreation 1.4%
Other Services (excluding Public Administration) 1.1%
Real Estate and Rental and Leasing 1.1%
Public Administration 1.0%
Wholesale Trade 0.9%
Manufacturing 0.7%
Utilities 0.0%
Agriculture, Forestry, Fishing and Hunting 0.0%
“Industries in which City residents work” “Jobs in the City” Source: U.S. Census Bureau Center for Economic Studies (2023, Accessed February 2026) Notes: Categorized by North American Industry Classification System (NAICS) Industry Sectors

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Outflow:

Where Residents Commute To For Work
City Count Percentage
San Francisco city, CA 3,311 17.8%
San Mateo city, CA 1,585 8.5%
Foster City city, CA 1,531 8.2%
Redwood City city, CA 965 5.2%
San Jose city, CA 859 4.6%
South San Francisco city, CA 791 4.3%
Palo Alto city, CA 708 3.8%
Menlo Park city, CA 650 3.5%
Mountain View city, CA 579 3.1%
Sunnyvale city, CA 475 2.6%
Santa Clara city, CA 441 2.4%
Oakland city, CA 433 2.3%
Burlingame city, CA 432 2.3%
San Carlos city, CA 336 1.8%
Fremont city, CA 313 1.7%
Hayward city, CA 266 1.4%
Cupertino city, CA 238 1.3%
Pleasanton city, CA 229 1.2%
Los Angeles city, CA 178 1.0%
Belmont city, CA 150 0.8%
San Leandro city, CA 143 0.8%
San Bruno city, CA 134 0.7%
Stanford CDP, CA 127 0.7%
Daly City city, CA 108 0.6%
Los Gatos town, CA 97 0.5%
Unknown Locations 3,517 18.9%
Inflow:

Where Workers Come From
City Count Percentage
San Francisco city, CA 1,660 8.1%
Foster City city, CA 1,531 7.5%
San Mateo city, CA 1,521 7.4%
San Jose city, CA 1,281 6.3%
Fremont city, CA 738 3.6%
Redwood City city, CA 580 2.8%
Hayward city, CA 577 2.8%
Oakland city, CA 526 2.6%
Daly City city, CA 327 1.6%
Sunnyvale city, CA 322 1.6%
Mountain View city, CA 298 1.5%
Los Angeles city, CA 280 1.4%
San Carlos city, CA 279 1.4%
South San Francisco city, CA 270 1.3%
Dublin city, CA 267 1.3%
San Bruno city, CA 258 1.3%
Belmont city, CA 256 1.2%
San Ramon city, CA 249 1.2%
Union City city, CA 240 1.2%
Burlingame city, CA 238 1.2%
San Diego city, CA 230 1.1%
Castro Valley CDP, CA 220 1.1%
Santa Clara city, CA 199 1.0%
Pacifica city, CA 192 0.9%
Palo Alto city, CA 181 0.9%
Unknown Locations 7,774 37.9%
WORKER

DESTINATIONS &

ORIGINS

CITY OF FOSTER
CITY
Source: U.S. Census Bureau Center for Economic Studies (2023, Accessed February 2026)

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Workers employed in City
but living outside
Workers living & employed
in City
Workers living in City but
employed outside
*Employment Ratio = People employed within City (living and working in City + those who come into City for work) / Employed population of City (living and working in City + workers who live in the City, but work outside of the City) Source: U.S. Census Bureau Center for Economic Studies (2023, Accessed February 2026)  Employees who work in the City are coming from San Francisco, San Mateo, San Jose, Fremont, and Redwood City
 Employed residents living in Foster City are traveling to San Francisco, San Mateo, Redwood City, San Jose, and South San Francisco for work

WORKER INFLOW / OUTFLOW

CITY OF FOSTER CITY
Reference Foster
City
San
Mateo
County
Workers Living and
Working 1,531 141,144
Workers Coming
(Inflow) 18,963 283,970
Workers Going
(Outflow) 17,065 230,971
Net Inflow/Outflow 1,898 52,999
Employment Ratio* 1.10 1.14
 Per the 2024-2025 ACFR, top 10
employers in Foster City include:
➢ Gilead Sciences, Inc. (6,865
employees)
➢ Visa Technology & Operations, LLC,
fmr. Inovant, LLC (2,785)
➢ Visa USA, Inc. (890)
➢ Zoox, Inc. (573)
➢ Cybersource Corporation (398)
➢ Peninsula Jewish Community Center
(390)
➢ Costco Wholesale (296)
➢ City of Foster City (209)
➢ Qualys, Inc. (272)
➢ Randstad Professionals US LLC (209)

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Foster City has far more jobs
than households – “job rich
environment”

JOBS / HOUSING

BALANCE
2025 Foster City
City
San Mateo
County
California
State
Employment 23,642 370,463 15,869,208
Households 13,021 272,778 13,785,669
Jobs / Housing
Ratio 1.82 1.36 1.15
Source: ESRI Business Analyst Online (Accessed February 2026)

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

REAL ESTATE MARKET ASSESSMENT

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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WHY REAL ESTATE MARKET ASSESSMENT?
 Occupancy and Rent Trends show the health of the business community  Office and Industrial Employment – Drives daytime retail demand  Professional jobs indicate more disposable income for convenience goods, quick serve food and full-service restaurants
 Hospitality – Drives overnight visitors and discretionary spending on full-service restaurants
 Provides daytime meeting and event space
 Retail Tenancy Data - Explains commercial voids / financial feasibility for new tenants

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BACKGROUND
Kosmont has conducted a market analysis utilizing Costar historic market data to help define the City and Bay Area current economic landscape, market trends, including supply and demand dynamics across commercial, office, retail, flex industrial, hospitality sectors. Included are the following sub-tasks:
 Developed baseline inventory of existing properties in referenced sectors and key market indicators, such as vacancy rates, lease rates, and tenant mix
 Benchmarked economic performance of neighboring Bay Area cities  Utilized Placer.ai to analyze trade area annual dollar demand for retail goods and services

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

RETAIL SECTOR

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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Q4 2025
City of
Foster City
Submarket
(3-Mi. Radius)
San Mateo
County
Availability
Market
Asking Rent
$PSF
$41.63 $38.48 $38.57
Vacancy Rate 17.0% 7.9% 4.8%
Vacant SF 104,874 416,268 1,483,667
Net
Absorption 14,858 16,989 (43,033)
Inventory
Existing SF 616,827 5,262,002 30,950,653
City Information
Major available retail space:
➢ 58,300 SF at 1010 Metro Center Blvd.
(fmr. Orchard Supply Hardware). This
freestanding building is located across
the street from the Costco and has
been vacant for nearly 4 years
➢ 35,794 SF available at Edgewater Place
shopping center
➢ Lucky’s store vacancy not reflected as
Osaka lease occurred within months
~297,700 SF of retail falls within a shopping
center (84% of which is in a neighborhood
center, while 16% are strip centers)
~197,500 SF of retail space is 40+ years old.

Per CoStar, there is currently no retail
space that is planned, proposed, or under
construction in the City of Foster City
Source: CoStar (Accessed February 2026); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Negative absorption refers to the fact that more tenants vacated retail space as opposed to renewing or expanding. Numbers in parentheses and in red indicate a negative number.

RETAIL MARKET OVERVIEW
Top: Former Orchard Supply Hardware
at 1010 Metro Center Blvd.

Above: Edgewater Place shopping center

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RETAIL MARKET HISTORY
2013 – 2025
Source: CoStar (Accessed February 2026)
Vacancy Rates Market Asking Rent PSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County
$28.00
$32.00
$36.00
$40.00
$44.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County
OSH closure accounts
for majority of vacancy

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RETAIL MARKET HISTORY
2013 – 2025

CITY OF FOSTER CITY
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 616,827 104,874 17.0% 6,697 $41.63
2024 616,827 111,571 18.1% 604 $41.37
2023 616,827 112,175 18.2% (3,623) $41.28
2022 616,827 108,552 17.6% (21,633) $39.35
2021 616,827 86,919 14.1% 14,580 $39.31
2020 616,827 101,499 16.5% (8,666) $39.39
2019 607,422 83,428 13.7% (106,807) $38.82
2018 640,835 10,034 1.6% 16,170 $37.99
2017 622,058 7,427 1.2% 20,949 $36.85
2016 610,397 16,715 2.7% (1,158) $35.93
2015 610,397 15,557 2.5% (12,152) $34.86
2014 618,582 11,590 1.9% (1,309) $33.34
2013 625,136 16,835 2.7% 6,581 $31.89
SUBMARKET (3-MI. RADIUS)
Year Inventory
SF
Vacant
SF
Total
Vacant
%
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 5,262,002 416,268 7.9% (9,041) $38.48
2024 5,262,002 407,227 7.7% (37,478) $38.56
2023 5,262,002 369,749 7.0% 31,442 $38.56
2022 5,259,832 399,021 7.6% 24,627 $38.18
2021 5,260,329 424,145 8.1% 177,293 $38.11
2020 5,118,968 460,077 9.0% (148,412) $38.16
2019 5,113,146 305,843 6.0% (57,492) $37.61
2018 5,031,348 166,553 3.3% (53,634) $36.82
2017 5,009,960 91,531 1.8% 21,848 $35.75
2016 5,008,312 111,731 2.2% (61,938) $34.88
2015 5,020,280 60,781 1.2% (192,597) $33.76
2014 5,226,694 74,598 1.4% 30,240 $32.23
2013 5,233,248 111,392 2.1% 59,198 $30.77
Source: CoStar (Accessed February 2026);
Note: Numbers in parentheses and in red indicate a negative number.

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

OFFICE SECTOR

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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Q4 2025
City of
Foster City
Submarket
(3-Mi. Radius)
San Mateo
County
Availability
Market Asking
Rent $PSF $60.76 $61.01 $58.55
Vacancy Rate 15.2% 20.2% 18.2%
Vacant SF 625,686 3,671,856 10,919,000
Net
Absorption 22,340 (34,891) 206,616
Inventory
Existing SF 4,124,000 18,209,000 59,900,000
City Information
Data in table on lower left is occupied as of
Dev 2025. There has been substantial leasing
activity in past few months that will reduce
vacancy in near future.

Major available office space as of March 2026:
➢ 60,000 SF at Parkside T owers (1001-1051 E.

Hillsdale Blvd.)
➢ 82,000 SF available at Metro Center (includes
two low rise, four-story buildings [919 and
989 E. Hillsdale Blvd.] and the 21-story Metro
T ower
➢ 108,000 SF at Lincoln Center (101 Lincoln
Center Dr.), 18,000 SF contiguous space
~695,000 SF of existing office space (17% of
total office space) is 40+ years old.

Source: CoStar (Accessed February 2026); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation. Negative net absorption refers to the fact that more tenants vacated space as opposed to renewing or expanding. Numbers in parentheses and in red indicate a negative number.

OFFICE MARKET OVERVIEW
Top: Parkside Towers
Middle: Metro Center Tower
Above: Lincoln Center

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OFFICE MARKET HISTORY

FOSTER CITY OFFICE VACANCY REQUIRES FURTHER ANALYSIS
Source: CoStar (Accessed February 2026)
Vacancy Rates Market Asking Rent PSF

5.0%

9.0%

13.0%

17.0%

21.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County
$42.00
$50.00
$58.00
$66.00
$74.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County

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OFFICE MARKET HISTORIC TRENDS
2013 – 2025

CITY OF FOSTER CITY
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 * 4,124,061 625,686 15.2% (187,175) $60.76
2024 * 4,119,061 433,511 10.5% (197,257) $58.21
2023 4,119,061 236,254 5.7% 1,352 $60.44
2022 4,119,061 237,606 5.8% 153,687 $63.24
2021 4,119,061 391,293 9.5% (10,630) $64.39
2020 4,119,061 380,663 9.2% 52,675 $63.53
2019 4,168,726 483,003 11.6% (48,291) $66.99
2018 4,168,726 434,712 10.4% 280,004 $64.44
2017 3,856,774 402,764 10.4% (54,687) $59.49
2016 3,856,774 348,077 9.0% 65,104 $57.46
2015 3,856,774 413,181 10.7% 18,945 $53.13
2014 3,896,474 471,826 12.1% 146,423 $46.81
2013 3,896,474 618,249 15.9% (367,854) $42.39
SUBMARKET (3-MI. RADIUS)
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 18,209,874 3,671,856 20.2% (581,134) $61.01
2024 17,998,845 2,879,693 16.0% (344,863) $58.94
2023 17,965,579 2,501,564 13.9% 2,384 $60.50
2022 17,863,493 2,401,862 13.4% 14,089 $63.83
2021 17,727,530 2,279,988 12.9% (314,588) $65.46
2020 17,727,530 1,965,400 11.1% (481,848) $65.09
2019 17,959,473 1,715,495 9.6% 653,729 $69.39
2018 17,425,591 1,835,342 10.5% 194,797 $65.94
2017 17,109,123 1,713,671 10.0% 402,013 $60.74
2016 16,416,335 1,422,896 8.7% (115,908) $58.05
2015 16,363,335 1,253,988 7.7% 2,443 $53.57
2014 16,408,035 1,301,131 7.9% 351,925 $47.25
2013 16,430,595 1,675,616 10.2% 131,544 $43.34
Source: CoStar (Accessed February 2026);
Note: Numbers in parentheses and in red indicate a negative number. * High vacancy in 2024-25 is under further analysis

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

INDUSTRIAL / FLEX MARKET (R&D)

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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Q4 2025
City of
Foster City
Submarket
(3-Mi. Radius)
San Mateo
County
Availability
Market Asking
Rent $PSF $41.41 $34.51 $29.16
Vacancy Rate 4.9% 16.8% 15.7%
Vacant SF 81,455 973,386 10,302,779
Net
Absorption 5,580 24,074 366,634
Inventory
Existing SF 1,647,295 5,797,289 65,815,783
City Information
~651,000 SF of flex (40% of total space) has
been built since 2013. In addition, there is
substantially more space in planning / under
construction.
➢ 190,000 SF flex / R&D building under
construction at Gilead Sciences Campus (331
Lakeside Dr.), to be completed April 2026
➢ 298,000 SF flex / R&D building proposed at
600 Lincoln Centre Dr.
➢ 181,000 SF R&D building under construction
at Gilead Sciences Campus (335 Lakeside Dr.)
➢ 200,000 SF R&D building proposed at
Chess/Foster City Blvd- Gilead Masterplan
Expansion
➢ 95,931 SF of new Class A life sciences office
at 388 Vintage Park Dr. currently under
building permit review (the former El T orito
restaurant)
Source: CoStar (Accessed March 2026); Note: Vacant space refers to all space that is not occupied by a tenant regardless of availability or lease obligation.

Negative net absorption refers to the fact that more tenants vacated space as opposed to renewing or expanding. Numbers in parentheses and in red indicate a negative number.

INDUSTRIAL / FLEX R&D MARKET OVERVIEW
Top: Gilead Sciences Lab
Middle: 500 Lincoln Centre Dr.

Above: 300 Lincoln Centre Dr.

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INDUSTRIAL / FLEX R&D MARKET HISTORY
2013 – 2025
Source: CoStar (Accessed March 2026)
Vacancy Rates Market Asking Rent PSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County
$16.00
$21.00
$26.00
$31.00
$36.00
$41.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius) San Mateo County
FC has much lower vacancy rates
and higher rents compared to
submarket and County.

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INDUSTRIAL / FLEX MARKET HISTORY
2013 – 2025

CITY OF FOSTER CITY
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 1,647,295 81,455 4.9% 74,680 $41.41
2024 1,647,295 156,135 9.5% 23,337 $40.89
2023 1,668,403 200,580 12.0% (86,079) $39.78
2022 1,668,403 114,501 6.9% (72,985) $38.45
2021 1,668,403 41,516 2.5% (88,432) $36.68
2020 1,718,137 2,818 0.2% (2,818) $34.89
2019 1,718,137 - - - $33.84
2018 1,718,137 - - 185,786 $32.66
2017 1,538,137 5,786 0.4% 251,028 $31.05
2016 1,321,305 39,982 3.0% (23,950) $29.48
2015 1,321,305 16,032 1.2% (36,249) $27.51
2014 1,509,368 164,838 10.9% (105,386) $25.67
2013 1,563,729 113,813 7.3% 101,229 $24.22
SUBMARKET (3-MI. RADIUS)
Year Inventory SF Vacant SF
Total
Vacant %
Total
Net
Absorp. SF
Total
Market
Asking Rent
PSF
2025 5,797,289 973,386 16.8% 65,409 $34.51
2024 5,797,289 1,038,795 17.9% 51,696 $34.24
2023 5,685,597 978,799 17.2% (572,905) $33.50
2022 5,685,597 405,894 7.1% (222,407) $32.42
2021 5,685,597 183,487 3.2% (135,558) $30.83
2020 5,735,331 97,663 1.7% 36,939 $29.22
2019 5,683,831 83,102 1.5% (41,199) $28.24
2018 5,686,731 44,803 0.8% 166,318 $27.16
2017 5,506,731 31,121 0.6% 227,528 $25.82
2016 5,296,661 48,579 0.9% 8,686 $24.53
2015 5,296,661 57,265 1.1% 29,574 $22.99
2014 5,474,724 261,894 4.8% (50,004) $21.58
2013 5,529,085 266,251 4.8% 43,293 $20.42
Source: CoStar (Accessed March 2026);
Note: Numbers in parentheses and in red indicate a negative number.

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CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

MULTIFAMILY RESIDENTIAL MARKET

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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MULTIFAMILY MARKET OVERVIEW
Q4 2025
City of
Foster City
Submarket
(3-Mi. Radius)
Availability
Asking Rent $3,547 $3,456
Avg. SF 893 880
Asking Rent PSF $3.97 $3.93
Vacancy Rate 2.1% 2.3%
T otal # of
Vacant Units 151 490
Net Absorption (4) 20
Inventory
T otal # of Units 7,039 21,417
 Major multifamily buildings in City
➢ Foster Landing (700 Bounty Dr., Class C,
market/affordable mix; garden apartments;
built 1987; 490 units;
➢ Isle Cove (846 Juno Ln.; Class B, market-
rate condos; built 1977; 451 units
➢ Beach Cove Apts. (703 Catamaran St.;
Class C, market-rate, garden apartments;
built 1972; 416 units;
➢ The Plaza (1 Plaza View Ln.; Class A,
market/affordable mix; mid-rise
apartments; built 2013; 307 units
 According to CoStar, there are currently no
multifamily residential buildings planned,
 In the last 12 years, a total of 734 units
were built across 6 buildings.
 Current RHNA (6th Cycle, 2023-2031)
requirement of 1,896 total housing units
(including 819 affordable [low and very-low)
Source: CoStar (Accessed February 2026); Notes: Data represents the average asking rents across all unit types (studio, 1BR, 2BR, etc.) in buildings that contain 10 or more units, exc. condos. Negative absorption means more residents vacated than moved into residential units. Numbers in parentheses and in red indicate a negative number.

Top: Foster Landing
Middle: Isle Cove
Above: The Plaza

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MULTIFAMILY MARKET HISTORY
2013 – 2025
Source: CoStar (Accessed February 2026);
Note: Numbers in parentheses and in red indicate a negative number.

CITY OF FOSTER CITY
Year Inventory
Units
Vacant
Units Vacant %
Net
Absorp.

Units
Asking Rent
/ Unit
Asking Rent
PSF
2025 7,039 151 2.1% 39 $3,547 $3.97
2024 7,039 190 2.7% (18) $3,375 $3.78
2023 7,039 172 2.4% 36 $3,274 $3.67
2022 7,039 207 2.9% (32) $3,262 $3.65
2021 6,969 175 2.5% 108 $3,205 $3.59
2020 6,969 283 4.1% (140) $2,941 $3.29
2019 6,969 142 2.0% 114 $3,329 $3.73
2018 6,957 245 3.5% 175 $3,331 $3.73
2017 6,537 200 3.1% 141 $3,217 $3.62
2016 6,537 342 5.2% 69 $3,144 $3.54
2015 6,305 179 2.8% (6) $3,127 $3.53
2014 6,305 173 2.7% 60 $2,861 $3.23
2013 6,305 233 3.7% 254 $2,728 $3.08
SUBMARKET (3-MI. RADIUS)
Year Inventory
Units
Vacant
Units Vacant %
Net
Absorp.

Units
Asking Rent
/ Unit
Asking Rent
PSF
2025 21,417 490 2.3% 129 $3,456 $3.93
2024 21,417 619 2.9% 636 $3,294 $3.74
2023 20,961 800 3.8% 53 $3,159 $3.57
2022 20,711 601 2.9% 152 $3,142 $3.54
2021 20,610 721 3.5% 444 $3,086 $3.48
2020 20,386 938 4.6% (218) $2,850 $3.23
2019 20,326 665 3.3% 444 $3,178 $3.60
2018 20,281 1,096 5.4% 202 $3,163 $3.59
2017 19,199 489 2.5% 395 $3,040 $3.46
2016 18,897 657 3.5% 112 $2,974 $3.39
2015 18,589 536 2.9% 348 $2,936 $3.36
2014 17,988 518 2.9% 193 $2,706 $3.14
2013 17,806 592 3.3% 284 $2,562 $2.97

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MULTIFAMILY MARKET HISTORY
2013 – 2025
Source: CoStar (Accessed February 2026)
Vacancy Rates Asking Rent PSF

0.0%

2.0%

4.0%

6.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius)
$2.80
$3.00
$3.20
$3.40
$3.60
$3.80
$4.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Foster City Submarket (3-Mi. Radius)

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HOSPITALITY (HOTEL) MARKET
CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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HOSPITALITY MARKET
 To understand the hospitality market, below is a summary of levels of service hotels:
➢ A limited-service hotel is a budget-friendly hotel offering low-cost accommodations, minimal amenities, and typically do not offer a full-service restaurant. These hotels typically fall under economy, midscale, or upper midscale classes according to STR
➢ A select-service hotel offers more amenities than a limited-service hotel, such as small meeting spaces and a casual restaurant, but fewer features than a full- service hotel. Select-service hotels are a blend of full- and limited-service hotels and are the fastest growing type of hotels being developed. These hotels typically are upper midscale or upscale class hotels
➢ A full-service hotel offers more services than a select- or limited-service hotel.

Such services could include larger banquet/conference space, restaurants/bars, shuttle services, laundry service, room service, expanded fitness centers, and spas.

Full-service can refer to different hotel types including boutique hotels and resorts and generally fall under upscale, upper upscale, and luxury class hotels  Economy hotels are patronized primarily through drive-by visitors, while large hotel chains have Rewards Programs with millions of loyal customers who search for those properties on the internet, thus increasing demand
 Examples of various hotels by class are highlighted in the table to the right. Note: STR hotel classes are typically grouped according to actual average room rates Class Hotels
Economy Motel 6, Studio 6, Red Roof Inn, Days Inn, Super 8 Midscale Best Western, Quality Inn, Extended Stay America Upper Midscale Hampton Inn & Suites, La Quinta Inn & Suites, Fairfield Inn & Suites, Holiday Inn
Upscale DoubleTree, Courtyard, Hyatt House, Homewood
Suites, Residence Inn, SpringHill Suites
Upper Upscale Sheraton, Hilton, Marriott, Le Meridien, Embassy Suites, Westin, Wyndham Grand
Luxury JW Marriott, Ritz-Carlton, W Hotel, Shangri-La,
Langham, Four Seasons, Fairmont

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HOSPITALITY MARKET
 Within a 3-mile radius from Foster City Hall, there are a total of 18 existing operational hotels, 14 of which are chain or franchise hotels (totaling 2,446 rooms) and 4 are independently operated (totaling 149 rooms). The total number of rooms within a 3-mile radius is 2,595 rooms. There are three hotels with 621 rooms in the City.  94% of rooms within the 3-mile radius fall within chain/franchise hotels (2,446 rooms in 14 hotels), while 6% are within hotels that operate independently (149 rooms in six hotels). Of the total 2,595 rooms in the radius, 14% are economy class (377 rooms), 10% midscale (259 rooms), 12% upper midscale (302 rooms), 48% upscale (1,236 rooms), and 16% upper upscale (421 rooms). There are no luxury hotels currently operating in this submarket.  ADR and occupancy remain significantly below pre-Covid levels, indicating challenges to new hotel development  There are three hotels proposed within this radius. These include the following: a 104-room economy-class hotel in Redwood City servicing the Redwood Life Evolve science cluster and two midscale hotels – an 88-room Tru by Hilton in Belmont and a 151-room hotel at Metro Center (across from Costco) in Foster City.

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FOSTER CITY HOTEL

SUBMARKET MAP
(3-MILE RADIUS)
Source: ESRI Business Analyst Online; CoStar;
Smith Travel Research (Accessed February 2026)
3-Mile
Radius
While the City only has three hotels
totaling ~500 rooms, there are
18 operational hotels totaling 2,595
rooms, within 3-mile radius.
14 of which are chain or franchise
hotels (totaling 2,446 rooms) and 4 are
independently operated (totaling 149
rooms).

Locations of existing and
operational hotels within a 3-mile
radius of Foster City City Hall.

Hotels circled in red fall within
the City of Foster City.

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Source: Smith Travel Research (Accessed February 2026); Note: Numbers in parentheses and in red indicate a negative percentage change. *Annual averages were calculated during the periods shown.

Year Avg.

Occupancy
Average Daily
Rate (ADR)
Annual Supply
of Room Nights
Annual
Demand for
Room Nights
Change in
Occupied
Room Nights
Revenue per
Available
Room
(RevPAR)
Change in
RevPAR
Feb. ‘18 – Jan. ’19 80.7% $193.20 886,069 715,034 - $156.20 - Feb. ‘19 – Jan. ’20 78.4% $200.97 897,921 702,815 (1.7%) $157.81 1.0% Feb. ‘20 – Jan. ’21 38.1% $113.66 881,546 333,418 (52.6%) $45.92 (70.9%) Feb. ‘21 – Jan. ’22 49.0% $114.45 898,266 440,717 32.2% $56.32 22.6% Feb. ‘22 – Jan. ’23 61.8% $158.93 925,160 572,495 29.9% $99.13 76.0% Feb. ‘23 – Jan. ’24 68.7% $164.00 946,344 649,463 13.4% $112.80 13.8% Feb. ‘24 – Jan. ’25 73.7% $163.28 994,719 733,149 12.9% $120.49 6.8% Feb. ‘25 – Jan. ’26 73.8% $168.31 994,530 733,599 0.1% $124.11 3.0% T otal Growth (%) (8.6%) (12.9%) 12.2% 2.6% - (20.5%) - HOTEL MARKET DEMAND ANALYSIS –
SUBMARKET (3-MI. RADIUS)
MARKET PERFORMANCE SUMMARY*

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HOTEL MARKET DEMAND ANALYSIS – 3-MI. RADIUS
PERFORMANCE BY MONTH (PRE AND POST-COVID-19 PANDEMIC
Performance by Month (Feb. 2025 – Jan. 2026)
Month Avg.

Occupancy ADR RevPAR
February 2025 70.5% $168.15 $118.49
March 2025 72.9% $166.09 $121.04
April 2025 72.4% $166.25 $120.31
May 2025 76.4% $167.09 $127.61
June 2025 80.4% $160.27 $128.92
July 2025 78.8% $159.83 $125.96
August 2025 78.3% $157.57 $123.41
September 2025 75.8% $176.55 $133.77
October 2025 77.8% $190.47 $148.27
November 2025 69.2% $172.27 $119.13
December 2025 64.1% $157.86 $101.16
January 2026 68.4% $177.30 $121.30
Average 73.8% $168.31 $124.11
Hotel performance has gradually improved since the COVID-19 pandemic, but occupancy, ADR, and RevPAR remain short of pre-pandemic numbers. June is the highest performing month in terms of occupancy.

Performance by Month (Feb. 2018 – Jan. 2019)
Month Avg.

Occupancy ADR RevPAR
February 2018 75.9% $189.67 $143.87
March 2018 80.2% $186.54 $149.54
April 2018 81.7% $188.19 $153.73
May 2018 85.0% $193.93 $164.84
June 2018 85.1% $192.79 $163.99
July 2018 85.8% $195.54 $167.75
August 2018 85.6% $192.99 $165.28
September 2018 85.9% $201.45 $173.14
October 2018 88.6% $210.13 $186.09
November 2018 74.9% $187.33 $140.34
December 2018 66.9% $171.19 $114.57
January 2019 72.5% $208.64 $151.26
Average 80.7% $193.20 $156.20
Pre-COVID-19 pandemic, hotels in the market area performed strongly nearly year-round, except for winter months (avg. occupancy from November to January was 71.4%). October was the most successful month.

Sources: CoStar; Smith Travel Research (Accessed February 2026) Note: *Annual averages were calculated during the periods shown.

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HOTEL MARKET DEMAND ANALYSIS – 3-MI. RADIUS

PERFORMANCE BY MONTH AND DAY OF THE WEEK
Source: Smith Travel Research (Accessed January 2026);
Note: The data used in this analysis is reflective of the hotels that report monthly to STR.

Performance by Month
Month Avg.

Occupancy ADR RevPAR
Sunday 62.8% $144.03 $90.76
Monday 76.2% $182.16 $141.90
Tuesday 83.0% $194.44 $165.01
Wednesday 83.2% $193.39 $163.56
Thursday 73.0% $160.05 $118.07
Friday 68.4% $142.23 $97.22
Saturday 71.2% $132.54 $94.70
Average 74.0% $164.12 $124.46
Performance by Day of Week
Strong mid-week demand peaking Wednesday (likely due to business travelers). Less demand over the weekend.

Performance varies by season. Higher occupancy found in the summer and early fall months (highest occupancy in June). Generally, less occupancy in the winter months.

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MARKET TRENDS
CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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MARKET TRENDS SUMMARY
 Key trends in the post-pandemic economy:

➢ Retail
• Retail store closures, bankruptcies, and e-commerce
has driven changes in retail; Retail centers are being
reimagined (e.g., mixed/blended use development)
• Retail driven by trip-generators such as
entertainment, experience, and essentials (e.g., food)
➢ Office
• Office leasing activity dropping as remote work
becomes new normal; Social distancing led to offices
resizing/reconfiguring
• Integrating office in blended use environments;
Possible shift to suburban offices / residential
conversions
➢ Industrial
• E-commerce has accelerated growth of industrial;
• Retail and industrial are merging, with space being
used for Buy Online Pick Up in Store (BOPIS),
fulfillment, last mile and warehousing (including flex) ➢ Residential
• Homes are live, play, and work environments
• Strength in suburban markets; Home office is the
new home amenity as single and multifamily housing
developments are designed to facilitate work
• New residential sites within shopping centers
➢ Hospitality
• Hospitality sector hurt the most by COVID-19
(conventions and business), but leisure travel is
rebounding

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Housing is Not a Loss
Leader, it’s a
Growth Driver
Retail is Not Just
Retail Anymore
T elework is
Reconfiguring Office
Industrial /
Distribution is Critical
for the Economy
Housing as Economic
Development
Retail Reimagination as
Economic Development
Office Conversions as
Economic Development
Industrial & Fulfillment as
Economic Development
• New housing can generate
significant new tax revenues and
support local jobs from resident
spending
• Housing is not necessarily a net
negative fiscal impact, especially at
current property values
• U.S. retail over-built and needs
“right sizing;” Covid accelerated
trends; today its about essentials,
experience & e-commerce
• Blended/mixed use projects
integrate multiple uses (housing,
retail, open space, creative office,
hotel)
• T elework and work from home
options are reshaping the needs for
office space and business districts
• Job redistribution tied to housing
• Vacancies can lead to fiscal impact
pressure
• Modern industrial is not “your
father’s industrial” – it is a blend
• Retail can’t thrive without
distribution; Booming demand for
e-commerce, particularly smaller
last-mile delivery facilities
• Flex space (a blend of industrial,
office, research and development
space) is a growing market. Cities
can attract high tech / skill firms
with such space
Key Market and Economic Development Trends

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Generate new demand for
commercial and retail uses
Significantly boost new tax revenues
Support local jobs
New housing can:

E-commerce will capture 25% of sales within 5 years
(~$9k per CA household)
Housing / hybrid living spaces
Keeping “wallets” in local communities
Townhomes by Landsea Homes in Ontario, CA
HEED
TM
: HOUSING ELEMENT FOR

ECONOMIC DEVELOPMENT
63 8.1
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E-COMMERCE RESHAPING ECONOMIC DEVELOPMENT
EST. E-COMMERCE SALES BY RESIDENTS
Population 34,700
Avg HH Size 2.64
HH 13,000
Average HH Income $253,100
% of HH Income for Expenditures - 209,700 83%
% of Expenditures for Retail Spending 28%
% Retail spending via e-commerce 20%
Avg HH E-commerce sales $11,760
Retail Sales PSF $400
Per HH Retail Space Equivalence 29 SF
Community E-Commerce Sales $152,880,000
Community Retail Space Equivalence 382,200 SF
Floor Area Ratio (FAR) 0.25
Retail Acreage Equivalence 35.1 AC
Sources: Kosmont Companies, ESRI, Placer.ai (Accessed March 2026) Notes: Assumptions made for % of HH Expenditures for e-commerce spending, retail sales PSF, and FAR.  Kosmont estimated the impact that e-commerce has on physical retail space by estimating the average e-commerce sales per household and the total e- commerce sales across all households in the City.
 ESRI data shows the approximate amount spent by households across different expenditure categories over a year. The sum of expenditures divided by the average household income yields the percentage spent on expenditures. In this case, 83% of Foster City households spend their money on a variety of expenditures. Of these expenditures, 28% are from key retail categories, such as food, entertainment, shopping club membership fees, housekeeping supplies, household furnishings, apparel, and personal care. Kosmont assumed that 20% of retail spending was conducted via e-commerce platforms.  Using Kosmont’s assumptions and calculations, the average household in Foster City spent about $11,760 per year on e-commerce, which, assuming retail sales average ~$400 PSF, equates to approximately 29 SF of retail space.  On a City-wide basis, the 13,000 households in Foster City spend approximately $153M or 382,200 SF of retail space. Assuming a Floor Area Ratio of 0.25, 35.1 acres of developable commercially-zoned land would be needed to accommodate this amount of retail space. Thus, while e-commerce does generate increasing revenues to the City via the County Pool, it is also lessening the need for additional retail space in the market.

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E-COMMERCE GROWTH
• The share of e-commerce sales
grew to 23% of total retail sales by
year-end 2025.
• FTI Consulting’s 2025 Online
Retail Report projections indicate
Online sales will grow 8.5%.
• UBS report estimates that 45,000
net retail store closures will occur
in the U.S. by 2028 (approximately
5% of the total retail store base)
• E-commerce sales in the U.S. have increased steadily since 2000. The COVID-19 pandemic saw major increased online retail sales, soaring by 42% compared to 2019. E-commerce sales continued to grow by double-digits into 2021 but cooled to just 6% growth in 2022. 2023 saw an increase in e-commerce sales by 9%
Sources: St. Louis Federal Reserve; FTI Consulting “2025 Online Retail Report”; UBS (Accessed March 2026)

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VISITATION TRENDS AND RETAIL LEAKAGE
CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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PLACER.AI SUMMARY
Placer.ai is a mobility data provider that tracks daily movement of over 30 million people in the U.S. via anonymized mobile app data. This information reveals travel trends to/from major events, shopping centers, and other places of interest – providing insight into retail center trade areas, hourly and daily visitation statistics, and consumer demographic characteristics. Kosmont utilized Placer.ai to analyze resident and visitor spending/travel patterns for past 7 years.  Graph on following slide shows 60% drop in visitors and 75% drop in commuters during the pandemic. Visitors have recovered, but workers are still 20-30% below the 2019 level, as work from home impacts many employers.  Following analysis shows frequency of visits to major locations within Foster City, as well as visits by Foster City residents to neighboring community shopping areas
 (Surprisingly) almost 400,000 unique non-Foster City residents visited Costco and Metro Center in the past 12 mos.  (Not surprisingly) 90% of Foster City residents shopped at Bridgepointe an average of 7 times last year and 1/3rd of residents shopped at Serramonte Center in Daly City an average of 9 times  Placer also estimates the retail spending by category for the Foster City / San Mateo submarket and found substantial leakage over $150 million (excluding auto sales)

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0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
May-22
Sep-22
Jan-23
May-23
Sep-23
Jan-24
May-24
Sep-24
Jan-25
May-25
Sep-25
Jan-26
Out-of-Market Visitors
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
May-22
Sep-22
Jan-23
May-23
Sep-23
Jan-24
May-24
Sep-24
Jan-25
May-25
Sep-25
Jan-26
Inbound Commuters

OVERALL CITY VISITS PER MONTH BY

OUT-OF-MARKET VISITORS AND INBOUND COMMUTERS
(1/1/19 – 2/28/26)
Source: Placer.ai (Accessed March 2026)
56% drop in visits from
February to April 2020
79% drop in visits from
February to April 2020

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CITY OF FOSTER CITY

TOP IN CITY LOCATIONS BY NUMBER OF VISITS
Source: Placer.ai (Accessed March 2026)
Notes: Visit numbers include out of
market visitors, employees, and residents
in the last 12-month period.

City of
Foster City
Costco Wholesale

2.6M visits (18th percentile)
Edgewater Place

1.0M visits
The Marketplace at Metro Center

2.9M visits Key T enant: Safeway
Safeway
18th in visits out of 240 Safeways in CA

1.5M visits
Marlin Cove
968,100 visits
Key T enant: 99 Ranch Market
Foster Square
930,200 visits
Key T enant: Starbucks
Leo J. Ryan Park
569,200 visits (92nd percentile statewide)
Osaka Marketplace*
422,800 visits
Mariners Point Golf Center
348,500 visits
99 Ranch Market
38th in visits out of 38 99 Ranch Markets in CA
325,500 visits (2nd percentile, 1st nationwide)

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CITY OF

FOSTER CITY

TOP VISITED

IN CITY LOCATIONS
3/1/25 TO 2/28/26
Location Visitors
(residents)
Visitors
(inbound
commuters)
Visitors
(out-of-
market
visitors)
T otal Visits
(all visitor
types)
The Marketplace at Metro Center
977 E. Hillsdale Blvd. 27,900 4,600 365,200 2,900,000
Costco Wholesale
1001 Metro Center Blvd. 21,700 4,200 414,400 2,600,000
Safeway1
921 E. Hillsdale Blvd. 25,600 3,600 194,700 1,500,000
Edgewater Place Shopping Center
919 Edgewater Blvd. 21,000 3,000 296,100 1,000,000
Marlin Cove
1070 Foster City Blvd. 19,700 2,500 179,700 968,100
Foster Square
707 Thayer Ln. 21,300 3,200 200,700 930,200
Leo J. Ryan Park*
650 Shell Blvd. 31,900 - 174,300 569,200
Osaka Marketplace2
919 Edgewater Blvd. 15,900 1,800 140,300 422,800
Mariners Point Golf Center
2401 E. 3rd Ave. 2,500 460 77,400 348,500
99 Ranch Market3
1070 Foster City Blvd. 11,900 1,200 80,600 325,500
Source: Placer.ai (Accessed March 2026)
Notes: Sorted by total number of visits to in-market locations (e.g., locations within the City of Foster City). The total visits column for in- market locations reflects the total visits by visitors, employees, and residents. Visitors (residents) column reflects the number of Foster City residents who went to these locations at least one time during the 12- month period. Visitors (inbound commuters) represents the number of visitors who work in the City but live outside of the City. Visitors (out-of- market visitors) represents the number of visitors who are visiting locations within the City, but neither live nor work in the City. -------------------------------------------------
*This data was not readily available. An estimate of the number of residents visiting Leo J. Ryan Park was taken from number of visitors living in 94404 (Foster City)

1. Safeway located within The Marketplace at Metro Center

2. Osaka Marketplace located within Edgewater Place. Osaka Marketplace replaced Lucky Supermarket in Dec. 2025

3. 99 Ranch Market located within Marlin Cove

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CITY OF

FOSTER CITY

TOP VISITED

OUT-OF-MARKET

LOCATIONS
3/1/25 TO 2/28/26
Source: Placer.ai (Accessed March 2026)
Notes: Sorted by total number of visits to in-market locations (e.g., locations within the City of Foster City). The total visits column for in- market locations reflects the total visits by visitors, employees, and residents. Visitors (residents) column reflects the number of Foster City residents who went to these locations at least one time during the 12- month period. Visitors (inbound commuters) represents the number of visitors who work in the City but live outside of the City. Visitors (out-of- market visitors) represents the number of visitors who are visiting locations within the City, but neither live nor work in the City. -------------------------------------------------

1. Target and The Home Depot located within Bridgepointe Shopping Center

2. Trader Joe’s located within Concar Shopping Center
Location
Residents
who visit at
least once
T otal Visits
by Residents
Visitors
(inbound
commuters)
Visitors
(out-of-
market
visitors)
Bridgepointe Shopping Center
3000 Bridgepointe Pkwy. 29,000 213,800 7,500 795,600
Hillsdale Shopping Center
60 31st Ave. (San Mateo) 26,700 165,300 5,900 767,600
Target1
2220 Bridgepointe Pkwy 24,200 123,300 4,700 475,400
Concar Shopping Center
666 Concar Dr. (San Mateo) 15,000 95,200 3,100 303,700
Places at Bay Meadows Shopping
Center 1010 Park Pl. (San Mateo) 17,400 88,100 2,900 290,300 Serramonte Center
3 Serramonte Center (Daly City) 9,100 78,800 3,500 585,400 The Home Depot1
2001 Chess Dr. (San Mateo) 16,500 70,300 3,200 222,100
Trader Joe’s2
1820 S. Grant St. (San Mateo) 11,100 65,600 1,800 163,500 Borel Square Shopping Center
59 Bovet Rd. (San Mateo) 7,300 58,000 1,900 197,600
Redwood City Plaza
2300 Middlefield Rd.
(Redwood City)
7,200 56,500 1,900 277,000

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TOP 10 OUTSIDE SHOPPING AREAS BY
FOSTER CITY RESIDENTS (1/1/25 TO 12/31/25)
Top 10 Outside Foster City Resident Shopping (by Number of Visits) Rank Location City Anchor Tenants /
Major Retail # of Residents # of Visits Average annual
Visits per Person
1 Bridgepointe Shopping Center San Mateo Target, The Home Depot, Hobby Lobby, Nordstrom Rack, Marshalls, T otal Wine & More, Ross, Petco 29,000 213,800 7 2 Hillsdale Shopping Center San Mateo Macy’s, Nordstrom, Cinepolis, Ana Furniture, Barnes & Noble, Gap, DSW, H&M, Uniqlo, Trader Joe’s 26,700 165,300 6 3 Target* San Mateo N/A 24,200 123,300 5
4 Concar Shopping Center San Mateo Ross, TJ Maxx, Trader Joe’s 15,000 95,200 6 5 Places at Bay Meadows San Mateo Crunch Fitness, Whole Foods Market 17,400 88,100 5 6 Serramonte Center Daly City
Macy’s, Target, Dick’s Sporting Goods, Dave & Buster’s, Nordstrom Rack, Ross, Crunch Fitness, Burlington, TJ
Maxx, World Market, H&M
9,100 78,800 9
7 The Home Depot* San Mateo N/A 16,500 70,300 4
8 Trader Joe’s** San Mateo N/A 11,100 65,600 6
9 Borel Square Shopping CenterSan Mateo 24 Hr. Fitness, CVS Pharmacy 7,300 58,000 8 10 Redwood City Plaza Redwood City Costco, Outdoor Supply Hardware 7,200 56,500 8 Source: Placer.ai (Accessed March 2026)
Note: *Target and The Home Depot are located at Bridgepointe Shopping Center. **Trader Joe’s located at Concar Shopping Center.

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KOSMONT COMPANIES | 73

RETAILER MAP
Source: Placer.ai, ESRI Business Analyst
Online (Accessed March 2026)
The points on the map show the top retail
centers where Foster City residents shop
outside of the City. Numbers are ordered
by the number of visits made by Foster City
residents to these locations.

Shopping centers in San Mateo are within a
ten-minute drive time just west of the City’s
boundaries (along CA-92 / US-101).

Residents will travel within a 20-minute
drive time to reach major regional centers
(such as the Serramonte Center in Daly
City) or the Costco-anchored Redwood
City Plaza.
1, 3, 7
10 5
6 4, 8
9 2
City of
Foster
City

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CITY OF FOSTER CITY
INBOUND COMMUTER DEMOGRAPHICS 3/1/25 TO 2/28/26
Demographic Highlights
Total Visits 1.6 million
Avg. Days Spent in Market 146.8
Total Visitors 10,900
Average HH Size 2.66
Most Common Ethnicity White (35.9%)
Bachelor’s Degree or Higher 58.8%
Median HH Income $160,300
Average HH Income $222,900
Source: Placer.ai; STI Popstats 2024 (Accessed March 2026) Notes: Inbound commuters refer to people who come to the City for work. This does not include the number of resident workers. Median and average visit length is unavailable for employees.

Visitor Household Incomes
< $50,000 14.9%
$50,000 - $100,000 15.9%
> $100,000 69.2%
Ethnicities
White 35.9%
Asian 32.7%
Hispanic 21.1%
Other 7.2%
Black 3.2%
Education Levels
High School or Less 21.5%
Some College/Associates 19.7%
Bachelor’s or Higher 58.8%

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CITY OF FOSTER CITY
INBOUND COMMUTER ANALYTICS 3/1/25 TO 2/28/26
T op 10 Inbound Commuter Origins (Zip Codes)
Zip Code City / Area
Serviced
# of Visits by Inbound
Commuters
94403 San Mateo 172,000
94401 San Mateo 127,000
94010 Hillsborough 60,700
94402 San Mateo 58,000
94002 Belmont 51,900
94070 San Carlos 38,600
94061 Redwood City 35,900
94030 Millbrae 31,000
94066 San Bruno 30,800
94015 Daly City 30,000
Source: Placer.ai (Accessed March 2026)
▪ 31% of inbound commuters live within 3 miles of the City; ▪ 39% of inbound commuters live between 10 and 30 miles away ▪ T op 10 origins are listed in the table below by zip code

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TRADE AREA

RETAIL LEAKAGE
(1/1/25 TO
12/31/25)
Source: Placer.ai (Accessed March 2026)
Note: Numbers in parentheses and in red indicate a negative number (leakage). Data reflects all consumers (residents + visitors) within the City. *Auto dealer sales could reflect satellite office where sales are reported to the U.S. Bureau of Labor Statistics.

Categories with high leakage include:
• Clothing stores
• Limited- and full-service restaurants,
• Sporting goods
• Health and personal care stores, and
• Auto parts / accessories stores.

UNMET RETAIL DEMAND BY RETAIL CATEGORY (WITHIN TRADE AREA) Retail Category Supply (Sales) $ Demand $ Surplus / Leakage $ Online Sales Leakage Potential
Gasoline Stations 167.4 M 80.4 M 87.0 M Low
Building Material & Supply Stores 81.2 M 47.0 M 34.2 M Low Grocery Stores 94.0 M 90.6 M 3.4 M Low
Department Stores 19.0 M 16.9 M 2.1 M Varies
Electronics & Appliance Stores 12.2 M 10.8 M 1.4 M High Book, Periodical, & Music Stores 1.3 M 1.7 M (0.4 M) High Bars / Drinking Places 0.7 M 4.2 M (3.5 M) Low
Sporting Goods / Hobby Stores 4.8 M 9.6 M (4.8 M) High
Automotive Parts / Accessories 10.0 M 14.9 M (4.9 M) Low Home Furnishings Stores 1.6 M 7.6 M (6.0 M) Medium
Limited-Service Restaurants 46.3 M 63.1 M (16.8 M) Low
Health & Personal Care Stores 26.5 M 47.8 M (21.3 M) Medium Full-Service Restaurants 38.7 M 62.5 M (23.8 M) Low
Clothing Stores 7.9 M 32.9 M (25.0 M) High
Other Gen. Merchandise Stores 37.2 M 91.4 M (54.2 M) Medium Auto Dealers* 94.5 M 167.8 M (73.3 M) Low

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RETAIL & SHOPPING CENTERS
CITY OF FOSTER CITY – REAL ESTATE ECONOMIC MARKET ANALYSIS

CITYWIDE REAL ESTATE ASSESSMENT, ECONOMIC MARKET ASSESSMENT

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KOSMONT COMPANIES | 78
Property Taxes in all forms represent
over 67% of City’s total general fund
revenues

GENERAL FUND

TAX REVENUES
FY 2024-2025
Source: Foster City ‘Annual Comprehensive Financial Report 2025” (April 2026) Revenue Category Revenue % Share of Total
Property Tax $44,552,000 67.7%
Sales & Use Tax $4,001,000 6.1%
Charges for Current Services $1,570,000 2.4%
Franchise Taxes $1,421,000 2.2%
Interest Income / Rentals $5,012,000 7.6%
License and Permits $7,790,000 11.8%
Hotel TOT $4,178,000 6.4%
Other (fines, shared services) $616,000 0.9%
Other Taxes $441,000 0.7%
Intergovernmental Revenues $209,000 0.3%
TOTAL $65,790,000 100.0%

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KOSMONT COMPANIES | 79Source: CA DOF; CDTFA; Kosmont Companies (Accessed February 2026) Note: Numbers in parentheses and in red indicate a negative number.

Year City Subtotal County
Pool
City
T otal
2012 $3,668,000 $469,000 $4,137,000
2013 $3,546,000 $495,000 $4,041,000
2014 $3,033,000 $471,000 $3,504,000
2015 $3,004,000 $488,000 $3,492,000
2016 $2,677,000 $531,000 $3,208,000
2017 $3,078,000 $600,000 $3,678,000
2018 $3,118,000 $671,000 $3,789,000
2019 $3,003,000 $711,000 $3,714,000
2020 $2,386,000 $870,000 $3,256,000
2021 $2,721,000 $792,000 $3,513,000
2022 $3,573,000 $952,000 $4,525,000
2023 $3,458,000 $873,000 $4,331,000
2024 $3,165,000 $835,000 $4,000,800
12-Year Growth (8.3%) 78.0% 1.5%
COVID-19 Effect
(2019-2020) (20.5%) 22.4% (12.3%)
CAGR (0.7%) 4.9% 0.1%

SALES TAX REVENUES BY YEAR
CITY OF FOSTER CITY (2012-2024)
0%
20%
40%
60%
80%
100%
120%
140%
160%
2024202320222021202020192018
City Sales Tax and
Share of County Pool
FOSTER CITY FOSTER CITY County Pool

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KOSMONT COMPANIES | 80

CITY RETAIL SALES BY CATEGORY BY YEAR
SALES TAX HAS GROWN 4% ANNUALLY – IN LINE WITH INFLATION Source: CA DOF; CDTFA; Kosmont Companies (Accessed February 2026) Notes: *Numbers reflected are in thousands of dollars. Other retail may include pet supply stores, tobacco stores, art dealers, etc. All other outlets refers to business to business or business to government transactions. Numbers in parentheses and in red indicate a negative number.

Retail
Category 2016 2017 2018 2019 2020 2021 2022 2023 2024 % Growth (2016-24)
2024 % of
T otal
Motor Vehicle - - - - - - - - - - -
Home Furnishings $18,563,486 $28,661,230 $25,987,508 $18,113,668 $16,703,897 $22,713,792 $42,322,122 $41,467,388 $52,583,000 180% 15% Building Materials $1,888,044 $9,045,702 $0 $21,969 $97,307 $0 $15,586 $0 $8,605 (99%) 0% Food & Beverage $16,974,164 $16,722,812 $15,451,546 $15,826,527 $15,760,789 $14,946,619 $15,907,443 $15,971,881 $15,957,000 (6%) 5% Gas Stations $23,657,539 $26,138,536 $29,455,406 $28,630,574 $12,735,677 $21,755,077 $31,549,942 $28,792,347 $27,406,000 11% 8% Clothing Stores $539,933 $364,297 $179,451 $108,617 $148,343 $143,258 $97,215 $255,498 $203,400 (60%) 0.1% Gen. Merchandise $0 $0 $0 $0 $0 $0 $0 $56,368,596 $100,784,000 - 29% Restaurants/Bars $48,944,297 $51,242,810 $58,810,964 $60,856,033 $38,682,655 $48,659,872 $68,121,253 $77,413,119 $73,322,000 58% 21% Other Retail $110,566,923 $112,694,991 $117,381,131 $116,646,545 $104,542,501 $111,903,862 $114,744,399 $58,570,510 $15,626,000 (88%) 5% Total Retail &
Food Services $221,134,386 $244,870,378 $247,266,006 $240,203,933 $188,671,169 $220,122,480 $272,757,960 $278,839,339 $285,890,000 30% 82% All Other Outlets $50,357,132 $60,951,264 $62,645,143 $47,674,854 $33,536,391 $46,497,672 $85,087,980 $75,577,473 $62,304,000 21% 18% TOTAL $271,491,518 $305,821,642 $309,911,149 $287,878,787 $222,207,560 $266,620,152 $357,845,940 $354,416,812 $348,197,000 27% 100%

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ANNUAL SALES TAX REVENUES
BY RETAIL CENTER / CATEGORY (CONT’D)
2021 – 2025
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2021 2022 2023 2024 2025
Marlin Cove Beach Park Plaza Foster Sqaure Metro Center Edgewater Gasoline Triton
Source: Neumo; City of Foster
City (Accessed March 2026)
• Foster Square retail has seen most
growth due to its slow lease up
after completion in 2020
• Metro Center also showed solid
growth in taxable sales (up 42%)
• The data shows that Marlin Cove
and Edgewater have very low
taxable sales due to grocery
anchors and personal services
• Triton shows extremely high sales
typically associated with fast food /
drive thru establishments
• The other centers showed minimal
growth over the period

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2025 TAXABLE SALES PSF

BY RETAIL CENTER
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Marlin Cove Beach Park Plaza Foster Sqaure Metro Center Edgewater Triton Source: Neumo; City of Foster City (Accessed March 2026) • Kosmont also examined the
taxable retail sales PSF to
measure the relative health of
each center
• The data shows that Marlin
Cove and Edgewater have very
low taxable sales due to grocery
anchors and personal service
tenants, while Triton shows
extremely high sales typically
associated with fast food / drive
thru establishments
• Beach Park Plaza is an anomaly
with under $200 in sales PSF/yr
for primarily restaurant space,
which would be too low to
justify reported retail market
rents of $40 PSF

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RETAIL CENTER SALES TRENDS
Kosmont reviewed Neumo Sales Data for past five years to understand relative performance. Important to note that this data is taxable sales, so total grocery sales (only portion is taxable) and personal services (non-taxable) are not reflected.
 Citywide retail sales have grown 20% (e.g. 4% per year keeping up with inflation)  Foster Square retail has seen most growth due to its slow leaseup after completion in 2020  Metro Center also showed solid growth in taxable sales (up 42%)  The other centers showed minimal growth over the period Kosmont also examined the taxable retail sales PSF to measure the relative health of each center (see slide 29)  The data shows that Marlin Cove and Edgewater have very low taxable sales due to grocery anchors and personal service tenants, while Triton shows extremely high sales typically associated with fast food / drive thru establishments
 Beach Park Plaza is an anomaly with under $200 in sales PSF/yr for primarily restaurant space, which would be too low to justify reported retail market rents of $40 PSF

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KOSMONT COMPANIES | 84
WHAT NEXT?
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

OPPORTUNITY SITES
• COUNCIL DIRECTION FOR SITES TO STUDY

COMMUNITY ENGAGEMENT
• IN-PERSON COMMUNITY MEETING – APRIL 27, 2026
• VIRTUAL COMMUNITY MEETING – MAY 2026
• FOCUS GROUPS – APRIL/MAY 2026

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CITY OF FOSTER CITY

REAL ESTATE ECONOMIC MARKET ANALYSIS - DATA
2301 Rosecrans Ave., Suite 4140
El Segundo, CA 90245
TEL: 424-297-1070 | URL: www.kosmont.com

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Can’t Attend?
An online community meeting will also be scheduled so additional residents can participate.

Date: Monday, April 27, 2026
Time: 5:00 pm to 6:30 pm
Where: Council Chambers
620 Foster City Blvd
Foster City

REAL ESTATE ECONOMIC

MARKET ANALYSIS
[email protected]
www.engagefostercity.org/real-estate-economic-market-analysis Foster City is undertaking a comprehensive
Real Estate Economic Market Analysis to
better understand current market conditions,
future economic trends, and opportunities to
strengthen the local economy.

What We’d Like to Hear From You
Where you currently shop, dine, and
spend time within the City
Locations in the City that could be
improved or reimagined
What Foster City is currently missing
What is working well and should be
strengthened
Join us for an in-person community meeting!

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8 DATE: April 20, 2026

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
Nate Cruz, Finance Director
DEPARTMENT: Public Works
SUBJECT: CONFIRMING PREVIOUSLY ADOPTED WASTEWATER RATES EFFECTIVE JULY 1, 2025, WITH ANNUAL ADJUSTMENTS
EACH JULY 1 THROUGH JULY 1, 2029

RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) review the attached study on Wastewater Rates, which confirms that no change is recommended to the previously adopted Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029.This is an informational item only no action is needed.

EXECUTIVE SUMMARY
On March 24, 2025, the EMID Board held a Budget Study Session to consider an analysis of proposed wastewater rates for a five-year period from FY 2025-2026 to FY 2029-2030 conducted by EMID's rate consultant, Bartle Wells Associates (BWA).

Pursuant to direction received from the EMID Board at that meeting, staff prepared a public hearing notice of the proposed adoption of maximum new wastewater rates.

In conformance with Proposition 218 and AB 2257, a public hearing notice with the proposed rates was mailed to all record property owners and customers of record on March 31, 2025. For this five-year rate cycle, it was recommended to hold the rate for FY 2025-2026, and increase the rate by 2% annually in FY 2026-2027 through FY 2029-

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8 2030. A public hearing was held, and the rates were adopted on June 2, 2025.

BACKGROUND/ANALYSIS
EMID provides wastewater service to over 13,980 residential, commercial and institutional accounts.

The rates that residential wastewater customers pay are based on a fixed charge for the category or type of residential unit (single family, townhouse/duplex, or apartment/condominium). Commercial customers are charged a variable rate based upon the amount of water consumed by their business and the business wastewater strength category.

EMID is responsible for its share of operating and maintenance costs that San Mateo (as the lead agency and the contracting party) incurs treating the District’s wastewater, as well as 24% of the capital improvement costs and 12% of program management costs incurred as part of the Clean Water Program (CWP), a multi-year comprehensive capital improvement project initiated in 2014 to replace aging infrastructure and meet regulatory requirements at the Wastewater Treatment Plant (WWTP). The District also has operational costs associated with the wastewater enterprise services.

On March 24, 2025, the EMID Board held a Budget Study Session regarding updated wastewater rates to be effective July 1, 2025, with annual increases through July 1, 2029. At the Budget Study Session, the EMID Board considered information developed by EMID's rate consultant, BWA, and approved the Rate Setting Procedures which incorporate and implement the requirements contained in Proposition 218 and the procedures by which property owners/rate payers are required to exhaust administrative remedies as set forth in Government Code section 53759.1 and 53759.2 (AB 2257). Pursuant to that direction and in conformance with Proposition 218, staff prepared and mailed the public hearing notice with the proposed rates by March 31, 2025.

A public hearing was held on June 2, 2025, there was no majority protest to the rates, and the rates adopted were effective July 1, 2025, with annual adjustments each July 1 through 2029. The rate included no increase for FY 2025-2026, and an increase of 2% annually in FY 2026-2027 through FY 2029-2030. For each annual update to the water rates authorized through July 1, 2029, a supplemental notice will be provided by the District to rate payers at least 30 days prior to the effective date of each update.

The proposed rates provide adequate revenue for operations, capital expenditures and transfers, and maintain the operating fund balance at or above target levels. The rates include consideration of the joint cost of the WWTP, and the operational and maintenance costs related to wastewater, local wastewater collection system operations, and capital improvement projects.

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8 Projections for the need for 2% increases in Fiscal Year 2026-2027 through 2029-2030 are included in Table 2 from the BWA Rate Study.

The 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 rates were prepared using a 15-year model, which has proven to be successful in dampening rate spikes. EMID customers will be notified of the previously approved rate change at least 30 days prior to the change in rates.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15273 (of the “CEQA Regulations”) because it establishes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) meeting operating expenses; (2) purchasing supplies, equipment and materials; (3) meeting financial requirements; and (4) obtaining funds for capital projects necessary to maintain service within existing service areas. Additionally, it is exempt per CEQA General Rule, Section 15061 (b) (3)

FISCAL IMPACT
The adopted wastewater rates will cover the projected system expenditures while adhering to budget policy objectives established by the EMID Board related to

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8 enterprise funds. All fiscal impacts for the wastewater system are borne by wastewater system customers. There is no General Fund impact.

VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
Innovation and Sustainability
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Bartle Wells Associates Wastewater Rate Study Analysis Attachment 2 – EMID Resolution No. 3805 Adopting Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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

DATE: March 23rd, 2026

TO: City of Foster City/Estero Municipal Improvement District

FROM: Bartle Wells Associates

SUBJECT: Wastewater 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 Wastewater Enterprise and to project wastewater rate adjustments for the next five -year period. BWA last conducted a rate study update in 2025, and the District adopted a five -year schedule of wastewater rates.

Current and projected wastewater service rates are in the mid dle range compared to other agencies on the Peninsula, and because water rates are comparatively low, combined water and wastewater service rates are in the middle -low range compared to other agencies on the Peninsula.

Wastewater Enterprise Summary
The District has entered into a Joint Powers Agreement with the City of San Mateo under which the District’s wastewater is treated via the San Mateo Wastewater Treatment Plant (WWTP). Under this agreement, the District is responsible for its proportionate share of the operating and maintenance costs incurred by the City of San Mateo, which acts as the lead agency and contracting entity for treatment services. In addition to ongoing operating costs, the District contributes approximately 24% of the WWTP improvement costs and 12% of program management costs incurred as part of the Clean Water Program (CWP), a 10-year comprehensive capital improvement project initiated in 2014.

The Clean Water Program represents a comprehensive effort to rehabilitate and modernize aging wastewater infrastructure serving San Mateo, Foster City, and surrounding communities. A major component of the program was the expansion and upgrade of the jointly owned wastewater treatment plant (WWTP).

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2 | Page
The project replaced significant portions of infrastructure that were more than 75 years old and incorporated advanced treatment technologies, including biological nutrient removal systems, to improve effluent quality, increase wet -weather treatment capacity, and reduce nutrient discharges to the San Francisco Bay.

Construction of the upgraded facility was substantially completed in 2025, with final improvements and commissioning activities continuing into 2026. The improvements include new headworks and primary clarifiers, advanced treatment processes, enhanced odor control systems, and expanded hydraulic capacity to better manage peak storm events.

During this transition period, the District is experiencing elevated operating costs associated with bringing the upgraded facilities online and optimizing performance. This includes a period in which both existing and new treatment facilities are operated concurrently to ensure system reliability and maintain regulatory compliance. In addition, the upgraded facility is expected to be more energy - and chemical-intensive, which will contribute to higher ongoing operating costs in future years. These upgrades reduce the risk of sanitary sewer overflows, enhance protection of the San Francisco Bay, and support compliance with current and evolving regulatory requirements.

The overall Clean Water Program cost exceeds $1 billion across all program components, with the WWTP upgrade representing the largest element of the program. The District’s total share of the WWTP improvements is estimated at approximately $17 2.8 million. In addition to the regional treatment plant improvements, the District continues to invest in capital improvements to its own wastewater collection system to maintain reliability and support long-term service needs.

The wastewater enterprise revenue model is designed to fund collection system capital expenditures through annual transfers from the operating fund to the capital improvement fund. This approach allows the District to maintain adequate funding for ongoing infrastructure rehabilitation while minimizing reliance on additional debt financing.

In June 2020, to fund the anticipated costs of the Clean Water Program improvements, the District Board approved a multi -year wastewater rate adjustment schedule. The original schedule included three annual increases of 14.25% from FY 2021 through FY 2023, followed by a planned 10% increase in FY 2024 and a 2% increase in FY 2025.

Subsequent financial analysis conducted in 2023 determined that the District had

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3 | Page
sufficient financing capacity to spread the remaining rate adjustments over a longer period. As a result, the City Council reduced the FY 2024 increase from 10% to 3% and maintained the previously adopted 2% increase in FY 2025. In FY 2026, the District Board approved a five-year rate schedule with no increase in FY 2026 and 2% increases from FY 2027 to FY 2030.

The San Mateo and Foster City partnership was able to secure historically low -interest financing for portions of the Clean Water Program, including federal and state loans with interest rates as low as approximately 1.14% for 30 -year financing. This favora ble financing structure helped reduce overall borrowing costs and allowed the District to implement smaller rate increases than originally anticipated.

Although major construction for the WWTP upgrade has been completed, uncertainty remains regarding future operating costs associated with the expanded facility, evolving regulatory requirements, and ongoing capital needs within the District’s collection system. To maintain financial stability while limiting impacts to ratepayers, BWA recommends implementing the adopted annual increases of approximately 2 % from FY 2027 through FY 2030. These increases are intended to support ongoing operating costs, capital reinvestment, and financial reserve targets, while allowing flexibility to re-evaluate future rate adjustments as additional operational and financial data becomes available.

Rate Surveys
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical wastewater bills with neighboring communities. The results of the wastewater survey are summarized in A ppendix A. Detailed adopted wastewater rates are shown in Appendix B.

The District’s proposed monthly residential wastewater bill for FY 2027 is $136.16. Since it is unknown what the comparator agencies are proposing for FY 2027, the District compared its FY 2026 monthly residential wastewater bills to the FY 2026 monthly residential wastewater bills for the neighboring agencies. The survey indicates that the District’s current wastewater rates are slightly above the average among its comparator agencies. The average monthly bill for the region is $130.90 and the District’s current FY 2026 rate is $133.49 per month, or about 2% more.

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Wastewater Enterprise Fund
There are approximately 13,987 wastewater accounts serviced by the District. Most accounts are residential with the remainder consisting of commercial and institutional accounts as shown in Table 1. The wastewater service area includes Foster City only and is shown in Appendix C.

The District’s minimum operating reserve target is 25% of operating expenses (approximately $2.8 million in FY 2026), equivalent to about 90 days of operating expenditures. The minimum target ensures adequate liquidity in case of unexpected expenditures. Wastewater utilities typically carry a median of 90 days to two years of cash on hand, with higher levels viewed more favorably by credit rating agencies.

Tabl e 1
Foster City / Estero Municipal Improvement District
Wastewater Servi ce Accounts
Data as of: 03/09/26
Number of Accounts
Residential
Single Fam ily 4,536
Townhouse/Duplex 2,296
Apartment/Condominium (Pools w/ Restrooms) 6,906
Re side ntial Total 13,738
Commercial
Restaurants 42
Commercial/Hotels/Offices/Industrial/Laundromats 171
Commerci al Total 213
Institutional
Institutional/Schools 36
Institutional Total 36
Total 13,987
Source: Cognos Sewer Customer Count Report
Customer Class

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As shown in Appendix B, for FY 2026, the District maintained an O&M reserve balance of $17,684,963 (approximately 575 days). This balance is projected to be drawn down to $11,899,050 (approximately 348 days) in the following year, which remains well above the minimum target of $3,116,936.

Table 2 summarizes the current and adopted wastewater service rates. From FY 2026 through FY 2030, rates are scheduled to increase by 2% annually for residential flat monthly charges and for volumetric charges (per ccf) applied to commercial and institutional customers.

Tabl e 2
Foster City / Estero Municipal Improvement District
Adopted Wastewater Rates
Current
Fiscal Year Ending June 30 FY 2026
FY 2027 FY 2028 FY 2029 FY 2030
Residential (flat monthly rate)
Single Fam ily $133.49 $136.16 $138.88 $141.66 $144.49 Townhouse/Duplex 112.13 114.37 116.66 118.99 121.37
Apartment/Condominium (Pools w/ Restrooms) 112.13 114.37 116.66 118.99 121.37 Commercial (rate per ccf of water use)
Restaurants 24.26 24.75 25.25 25.76 26.28
Commercial/Hotels/Offices/Industrial/Laundromats 8.53 8.70 8.87 9.05 9.23 Institutional (rate per ccf of water use)
Institutional/Schools 5.61 5.72 5.83 5.95 6.07
Adopted Rates

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Table 3 summarizes the operating expenses of the wastewater enterprise. Total O&M expenditures are projected to increase from approximately $11.2 million in FY 2026 to $12.5 million in FY 2027, representing an 11% increase. This increase is primarily driven by a significant rise in the District’s share of WWTP O&M costs associated with bringing the upgraded facilities online and optimizing performance. Following FY 2027, O&M expenditures are projected to continue increasing at a more moderate rate, ranging from approximately 2.7% to 6.1% annually through FY 2031. Projections of the District’s share of WWTP operating and maintenance costs assume the District contributes approximately 21% of total flows to the WWTP.

Table 3
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise O&M Projection
Revised
Budget
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Employee Services $3,215,450 $3,243,502 $3,373,242 $3,508,172 $3,648,499 $3,794,439 4.0% Additional Staffing Expense [2] 0 0 118,767 122,661 126,689 $131,756 Vari es Internal Services (from City) 1,631,334 1,842,089 1,888,141 1,935,345 1,983,729 2,033,322 2.5% Internal Services- Equipment Replacement Fund 401,864 401,864 411,911 422,209 432,764 443,583 2.5% Services & Supplies 851,450 922,800 945,870 969,517 993,755 1,018,599 2.5% EMID Share WWTP O&M 4,040,000 4,800,000 5,200,000 5,300,000 5,500,000 5,600,000 N/A Reallocation [3] 1,087,381 1,257,490 1,288,927 1,321,150 1,354,179 1,388,033 2.5% TOTAL O&M Expenditures $11,227,479 $12,467,745 $13,226,858 $13,579,054 $14,039,615 $14,409,732

11.0% 6.1% 2.7% 3.4% 2.6%
[1] Based on historical results
[2] A placeholder for potential additional positions to support the wastewater enterprise. [3] Costs allocated to the wastewater enterprise for the cost of services provided to the enterprise by City departments, as documented in the City’s cost allocation study.

Expenditures Annual %
Increase [1]
Five Year Projection

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Wastewater Financial Projections
Wastewater projections are shown in Appendix B.

Table 4 shows debt service for the District’s share of WWTP costs. Annual debt service for WWTP financing amounts to approximately $6 million. The City of San Mateo and the District used the proceeds to invest in the rehabilitation of their aging WWTP. This project aims to increase the plant's capacity to handle wet weather flows, produce higher-quality effluent, enhance system reliability, and support sustainability goals. The upgrade is designed to meet both current and future regulatory requirements and provide opportunities for future water reuse. Additionally, new treatment facilities comply with National Pollutant Discharge Elimination System (NPDES) permit limits. This upgrade will also boost the system’s ability to manage wastewater during storms up to 78 million gallons per day (mgd) and help prevent sanitary sewer overflows into the San Francisco Bay.

Key Benefits of the Project:

• Rehabilitation of the aging WWTP

• Reduction of ammonia and nitrogen effluent concentrations in compliance with the NPDES permit

• Decreased sewer overflows and unauthorized discharges into the San Francisco Bay

Table 4
City of Foster City / Estero Municipal Improvement District D
ebt Service
Debt Service FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 WIFIA Loan $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 $2,652,882 2019 Bonds 2,086,875 2,087,750 2,086,875 2,084,250 2,084,750 2,088,125 2,084,375 2,083,500 2,085,250 2,084,500 2023 SRF Loan/Bonds 1,259,604 1,259,573 1,259,540 1,259,508 1,259,475 1,259,443 1,259,410 1,259,376 1,259,342 1,259,309 Total Debt Service 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 5,996,690

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APPENDIX A
8 | Page

10.42 10.71

67.11 69.92

16.25 94.58
104.58
112.00
120.00
$37.61
123.88

49.66 60.94

86.36 133.49
$136.16

65.71 159.92
160.42

98.07 182.08
133.72
359.25

30.00 53.55

56.68 85.68

74.58 67.32

43.18 77.34

67.92 66.86

40.42 64.26

67.11 69.92

72.93 94.58
104.58
112.00
120.00
123.29
123.88
124.24
128.26
129.54
133.49
136.16
143.05
159.92
160.42
165.99
182.08
200.58
359.25
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
$250
$275
$300
$325
$350
Sewer Usage Charges
Fixed or Minimum Charges
Source
Typical Single Family Residential Monthly Sewer Charges Based on flat rate or 6 hcf of monthly winter water use Average: $130.90

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APPENDIX B
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Table B-1
City of Foster City / Estero Municipal Improvement District Wastewater Enterprise Cash Flow Projection
Current Extended Year Projection
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Assumptions:

Interest Earnings Rate 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Revenue Increase from Growth 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Rate Adjustment 0.00% 2.00% 2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 1.00% 1.00% Monthly Service Charge for Single Family $133.49 $136.16 $138.88 $141.66 $144.49 $145.93 $147.39 $148.86 $150.35 $151.85 Beginning O&M Fund Balance $28,611,436 $17,685,000 $11,899,100 $11,901,900 $12,088,200 $12,365,500 $12,600,300 $12,693,800 $13,733,700 $14,840,800 Operating Revenues
Service Charges 21,441,367 21,950,000 22,471,000 23,004,000 23,550,000 23,873,000 24,200,000 24,531,000 24,867,000 25,208,000 Connection Fees [1] 0 0 0 0 0 0 0 0 0 0
Interest Earnings [2] 858,000 531,000 357,000 357,000 363,000 371,000 378,000 381,000 412,000 445,000 Other Revenue 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Operating Revenue 22,300,367 22,482,000 22,829,000 23,362,000 23,914,000 24,245,000 24,579,000 24,913,000 25,280,000 25,654,000 Total Revenue 22,300,367 22,482,000 22,829,000 23,362,000 23,914,000 24,245,000 24,579,000 24,913,000 25,280,000 25,654,000 Operating Expenses
Employee Services 3,215,450 3,243,502 3,373,242 3,508,172 3,648,499 3,794,439 3,946,217 4,104,066 4,268,229 4,438,958 Additional Staffing Expense 0 0 118,767 122,661 126,689 131,756 137,026 142,507 148,208 154,136 Internal Services (from City) 1,631,334 1,842,089 1,888,141 1,935,345 1,983,729 2,033,322 2,084,155 2,136,259 2,189,665 2,244,407 Internal Services -ERF 401,864 401,864 411,911 422,209 432,764 443,583 454,673 466,040 477,691 489,633 Services & Supplies 851,450 922,800 945,870 969,517 993,755 1,018,599 1,044,064 1,070,166 1,096,920 1,124,343 EMID Share WWTP O&M 4,040,000 4,800,000 5,200,000 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 6,000,000 6,000,000 Reallocation 1,087,381 1,257,490 1,288,927 1,321,150 1,354,179 1,388,033 1,422,734 1,458,302 1,494,760 1,532,129 Operating Expenses 11,227,479 12,467,745 13,226,858 13,579,054 14,039,615 14,409,732 14,888,869 15,377,340 15,675,473 15,983,606 Operating Net Revenue 11,072,888 10,014,255 9,602,142 9,782,946 9,874,385 9,835,268 9,690,131 9,535,660 9,604,527 9,670,394 Capital Expens es
Transfer Out - Collection CIP 16,000,000 9,800,000 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 2,500,000 2,500,000 2,500,000 Capital Expenses 16,000,000 9,800,000 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 2,500,000 2,500,000 2,500,000 Annual Debt Service 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 5,996,690 Debt Service 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 5,996,690 Debt Coverage [3] 1.85 1.67 1.60 1.63 1.65 1.64 1.62 1.59 1.60 1.61 Total Expenditures 33,226,840 28,267,950 22,826,156 23,175,693 23,636,722 24,010,182 24,485,535 23,873,098 24,172,947 24,480,296 Revenues Less Total Expenditures (10,926,473) (5,785,950) 2,844 186,307 277,278 234,818 93,465 1,039,902 1,107,053 1,173,704 Ending O&M Fund 17,684,963 11,899,050 11,901,944 12,088,207 12,365,478 12,600,318 12,693,765 13,733,702 14,840,753 16,014,504 Cash Fund Reserve Test: Minimum Fund
Balance > 25% O&M Expenses
Year-end O&M Fund 17,684,963 11,899,050 11,901,944 12,088,207 12,365,478 12,600,318 12,693,765 13,733,702 14,840,753 16,014,504 25% Operating Expenses 2,806,870 3,116,936 3,306,715 3,394,763 3,509,904 3,602,433 3,722,217 3,844,335 3,918,868 3,995,901 # of Days O&M in Reserves 575 348 328 325 321 319 311 326 346 366 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Connection fees excluded from analysis.
[2] Projected interest calculated as 3% of the Beginning Fund Balance of the Wastewater O&M Fund. [3] Minimum requirement debt service coverage requirement = 1.25x Five Year Projection

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Table B-2
City of Foster City / Estero Municipal Improvement District Wastewater Rate Impacts
Current
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
% Rate Increas e 2.00% 2.00% 2.00% 2.00%
Residential (flat monthly rate)
Single Family $133.49 $136.16 $138.88 $141.66 $144.49
Increase (Decrease) 2.67 2.72 2.78 2.83
Townhouse/Duplex $112.13 $114.37 $116.66 $118.99 $121.37 Increase (Decrease) 2.24 2.29 2.33 2.38
Apartment/Condominium (Pools w/ Restrooms) $112.13 $114.37 $116.66 $118.99 $121.37 Increase (Decrease) 2.24 2.29 2.33 2.38
Commercial (rate per ccf of water us e)
High Strength $24.26 $24.75 $25.25 $25.76 $26.28
Increase (Decrease) per ccf 0.49 0.50 0.51 0.52
Medium/Domestic Strength $8.53 $8.70 $8.87 $9.05 $9.23
Increase (Decrease) per ccf 0.17 0.17 0.18 0.18
Low Strength $5.61 $5.72 $5.83 $5.95 $6.07
Increase (Decrease) per ccf 0.11 0.11 0.12 0.12
Adopted Rates Adopted - Fiscal Year Ending June 30
Table B-3
City of Foster City / Estero Municipal Improvement District A
dopted Wastewater Rate Impacts
Current
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
% Rate Increas e
Single Family Residential Flat Monthly Flat $133.49 $136.16 $138.88 $141.66 $144.49 $ Increase (Decrease) 2.67 2.72 2.78 2.83
% Increase (Decrease) 2.00% 2.00% 2.00% 2.00%
Adopted Rate Changes Adopted - Fiscal Year Ending June 30

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Figure B-1
$133.49 $136.16 $138.88 $141.66 $144.49
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
FY2026 FY2027 FY2028 FY2029 FY2030
Foster City/Estero Municipal Improvement District
Monthly Single Family Residential Wastewater Bill
Adopted SFR Monthly Bills

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APPENDIX C

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Docusign Envelope ID: 1 B0B4548-503A-4AD7-B763-54103FA64B3B RESOLUTION NO. 3805

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING UPDATED WASTEWATER RATES EFFECTIVE JULY 1, 2025, WITH ANNUAL ADJUSTMENTS EACH JULY 1 THROUGH JULY 1, 2029

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the Estero Municipal Improvement District ("District") provides wastewater service to property owners (who may also be referred to as "owners") within the District's service area (as identified on the final page of the Wastewater Rate Study, attached as Exhibit "A"), and establishes the amount of wastewater service charges to be charged customers in accordance with Estero Municipal Improvement District Code ("District Code") Chapter 8.48 and applicable law; and
WHEREAS, the District is authorized to establish fees, rates, and charges for the wastewater services provided to each property owner in accordance with District Code Chapter 8.48, and "Proposition 218" (California Constitution Article XIII D, Section 6; as it is implemented by the Legislature at Government Code sections 53750 - 53759.2; and as it has been interpreted by judicial decisions); and California Health and Safety Code Section 5471.The District refers to those fees, rates, and charges as wastewater charges or wastewater rates (as used herein, the phrases "wastewater charges" and "wastewater rates" may be used interchangeably); and
WHEREAS, the District has previously established wastewater rates under District Code Chapter 8.48, pursuant to EMID Resolution No. 3729, adopted by the District Board on June 5, 2023. The purpose of wastewater rates is to ensure that adequate funding is provided to protect the public health, safety and general welfare through the provision of a reliable and adequate wastewater system that meets current and anticipated demands to serve the owners and customers of the District; and WHEREAS, the District undertook an analysis of previously established wastewater rates, as documented in the memorandum from the District's consultant, Bartle Wells Associates ("BWA"), dated March 19, 2025 and titled "Wastewater Rate Study Update Results" ("Wastewater Rate Study"), and determined that proposed changes to the wastewater rates are warranted (to be effective July 1, 2025, with annual adjustments each July 1 through July 1, 2030) in order to offset the District's ongoing costs of providing wastewater services to owners and customers, including the costs of providing proper maintenance and replacement of existing utility infrastructure, and providing adequate reserves for emergency. The Wastewater Rate Study is attached hereto as Exhibit "A," and it has been posted on the "District's Webpage" (www.fostercity.org/publicworks/page/water-and-wastewater-rates) since March 31, 2025;and

8.2 Attachment 2 - EMID Resolution No. 3805 Adopting Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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EMID Resolution No. 3805
WHEREAS, at its Budget Study Session held on March 25, 2024, the District Board a) reviewed the Wastewater Rate Study and detailed analyses of the District’s utility system operations, revenues, expenses and long- term capital improvement program; ( b) directed staff to schedule a public hearing to consider recommended updates to wastewater rates; and ( c) approved the “Rate Setting Procedures” ( attached hereto as Exhibit “B”) to document the process by which the District will conduct the public hearing in accordance with the requirements of Proposition 218 as well as implementing administrative remedies for owners to submit written objections to the wastewater rates in accordance with “ AB 2257” codified at Government Code Sections 53759. 1 and 53759. 2); and
WHEREAS, on March 31, 2025, the District mailed the notice of public hearing ( to be held on June 2, 2025) to all property owners receiving wastewater service from the District, and posted the notice and the Rate Setting Procedures on the District’s Webpage. The public hearing notice is attached hereto as Exhibit “C,” and it was mailed in accordance with Proposition 218, posted in accordance with AB 2257, and published in accordance with Government Code Sections 6062a, 54354. 5, and 66016; and WHEREAS, consistent with the notices of public hearing, the public hearing was held on June 2, 2025, the District Board provided an opportunity for every interested person to comment on the proposed wastewater rates, the Board was prepared to consider any timely written protests from property owners and written responses from District staff ( per AB 2257) however no written objections were filed , and the Board proceeded to conduct the public hearing to consider timely written protests submitted prior to the close of public hearing; and
WHEREAS, the District Board finds and determines, based on the entire record before the District Board, including but not limited to the Wastewater Rate Study and the Staff Report and attachments thereto, that it is warranted and necessary to establish the revised wastewater rates as set forth in this Resolution.

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 this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080( b)(8), and California Code of Regulations Section 15273 of the “CEQA Regulations”) because it establishes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) meeting operating expenses; ( 2) purchasing supplies, equipment and materials; ( 3) meeting financial requirements; and ( 4) obtaining funds for capital projects necessary to maintain service within existing service areas.

Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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EMID Resolution No. 3805

3. The procedures followed and the wastewater rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code sections 53755 and 53759. 1, and Health and Safety Code section 5471.

4. The District Board accepts and approves the Wastewater Rate Study in the referenced Exhibit “A” setting forth the basis for the wastewater service charge rates. The Wastewater Rate Study establishes that the wastewater rates do not exceed the District’s costs of service and that the rates are proportionately charged to each customer class.

5. The District Board hereby approves and adopts the wastewater rates set forth on Exhibit “ D,” to be incorporated into the Master Fees and Service Charges Schedule. The wastewater rates approved by this Resolution shall be implemented in accordance with Resolution Section 6. The wastewater rates are approved based on the following findings and determinations by the District Board:
a. Although the District received no timely written objections, the Rate Study and all evidence identified in this Resolution document the bases on which these wastewater rates are approved, and there is no need to reduce, alter, or clarify the proposed wastewater rates. b. At the close of the public hearing on June 2, 2025, the District Board considered all timely written protests and determined that, from the total number of 9,349 parcels served by District wastewater service, the owners of a majority of those parcels did not submit a written protest.

Therefore, the Board overruled all written protests against the proposed wastewater rates, and the District may approve the wastewater rates in accordance with California Constitution Article XIII D, Section 6(a)(2). c. The Wastewater Rate Study and all evidence identified in this Resolution document that the wastewater rates comply with the substantive requirements of Proposition 218, as set forth at California Constitution Article XIII D, Section 6(b):
i. The revenues derived from the rates do not exceed the cost of providing wastewater service to property owners or customers served by the District’s wastewater service.
ii. The revenues derived from rates are not, and shall not be, used for any other purpose other than meeting the costs of providing wastewater service.
iii. The amount of the rate imposed upon any parcel does not exceed the proportional cost of the wastewater service provided to that parcel.
iv. The revenues derived from rates are used for wastewater services actually used by, or immediately available to, the person or owner of the property responsible for the payment of the rate. v. No rate is imposed for general governmental services, such as police or fire, that is available to the public at large.

Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

8.2 Attachment 2 - EMID Resolution No. 3805 Adopting Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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EMID Resolution No. 3805

6. The wastewater rates set forth on “Exhibit D” shall be effective July 1, 2025, for the rates identified in each column labeled “ Proposed FY 25-26” for each row of rates as applicable to the relevant property owner or customer. Each Commercial Rate shall be multiplied by the amount of water usage ( in units of one hundred cubic feet, or per “ccf”) per customer, and the amount of water usage shall be as determined by the Public Works Director, or designee, based on credible evidence including the total metered water usage for each billing period. Thereafter:
a. The wastewater rates shall be automatically updated on an annual basis each July 1 for the years 2026, 2027, 2028 , and 2029, in accordance with the schedule set forth on Exhibit “D” for the corresponding columns for each year labeled “ Proposed FY 26- 27,” “Proposed FY 27- 28,” Proposed FY 28- 29; and “Proposed FY 29- 30.”
b. Provided, however, for any annual update to wastewater rates under this Resolution Section 6, the District shall provide notice of the update at least 30 days before the effective date, in accordance with Government Code Section 53756( d).
c. Provided further that, for any notice of an annual update to wastewater rates: ( 1) the District Board may set the rates by resolution in an amount that is equal to or less than the amounts authorized by this Resolution Section 6; and ( 3) the District Board may delay the effective date of an annual increase as long as the amount of the increase does not exceed the authorized by this Resolution Section 6.
d. The rates in effect on July 1, 2029, shall remain in effect each July 1, thereafter.
e. The wastewater rates shall not be set in an amount that exceeds those set forth in this Resolution Section 6 unless the District Board first conducts a noticed public hearing in accordance with the requirements of law including Proposition 218.

Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

8.2 Attachment 2 - EMID Resolution No. 3805 Adopting Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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EMID Resolution No. 3805
PASSED AND ADOPTED as a resolution of the District Board of the Estero Municipal Improvement District at the regular meeting held on the 2nd day of June, 2025, by the following vote:

AYES: Directors Kiesel, Niederhofer, Sullivan, Venkat, and President Jimenez NOES: None
ABSENT: None
ABSTAIN: None

STACY JIMENEZ, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY
Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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

TO:

FROM:

SUBJECT:

March11th, 2025
Cityof FosterCity/EsteroMunicipalImprovementDistrict
BartleWellsAssociates
WastewaterRateStudyUpdateResults

SUMMARYOFFINDINGSANDRECOMMENDATIONS
Introduction andBackground
The EsteroMunicipal ImprovementDistrict (District) engagedBartle Wells Associates BWA) to develop10-yearfinancialprojectionsfor the District’s WastewaterEnterprise and to project wastewater rate adjustmentsfor the next five-year period. BWA last conductedaratestudyupdatein 2024. Nopublichearingwasheldfor wastewater, asthe adoptedwastewaterrate increaseof 2% wasdeterminedto be adequate.

Currentandprojectedwastewaterserviceratesare in the middle-highrangecompared to other agenciesonthe Peninsula. However, becausewaterratesarecomparativelyvery low, combinedwaterandwastewaterserviceratesarein the middle-low rangecompared to other agencieson the Peninsula.

WastewaterEnterpriseSummary
TheDistricthasenteredinto a JointPowersAgreementwith the Cityof SanMateowhere the District receives treatment of its wastewater via the San Mateo Wastewater Treatment Plant (WWTP). The District is responsiblefor its share of operating and maintenancecoststhat SanMateo (asthe leadagencyandthe contractingparty) incurs treating the District’s wastewater, as well as approximately 24% of the WWTP improvementcostsand12% of programmanagementcostsincurredaspart of the Clean WaterProgram (CWP), a10-yearcomprehensivecapitalimprovementprojectinitiated in 2014. TheCitiesof SanMateo andthe Districtareexpandingthe jointly ownedWWTPat an estimated cost of $748 MM with $ 171.9 MM of that falling under Foster City’s contributions. Thisisin additionto localcapitalprojectsfor the District’sownwastewater collectionsystem.

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2 | P ag e
Thewastewaterenterpriserevenuemodelis designedto fund collectionsystemcapital expenditures through annual transfers from the operating fund to the capital improvementfund.

In June2020, to fund the anticipatedcostsof the WWTPCWPimprovements, the District Boardapproved5 yearsof wastewaterrate increases: three 14.25% per yearincreasesin FY2021throughFY2023, a 10% wastewaterrate increasein FY2024, anda 2% increase in FY2025. BWA’s 2023analysisshowsthat the Districthadadequatefinancingcapacity for projecteddebt issuancesin the next severalyearsand recommendedspreadingthe remainingrateincreasesout overalongerperiod. Thus, the CityCouncilreducedthe 10% increasein FY2024to 3% andimplementedthe final adopted2% increasein FY2025.

BWArecommendsadoptinganother5-yearrate schedulefor FY2026through FY2030.

SanMateo and the District were able to lock in extremelycheapfinancingfor WWTP projectsdue to the timing of the financings (loan interest ratesaslow as1.14% for 30 year financing), which has allowed the District to implement lower increasesthan anticipated. However, there is uncertaintyabout future operatingand capitalcostsfor the upgradedWWTP. BWArecommendsholding the wastewaterrates as the current level for FY2026and adopting2% annualrate increasesfrom FY2027to FY2030. The increasesarerecommendedto bereevaluatedeachyearasthe dataevolves.

Detailedwastewaterrate calculationsareshownin APPENDIXB.

RateSurveys
A surveyof communitiesalongthe SanFranciscoPeninsulawasconductedto compare the District’s typical wastewaterbills with neighboringcommunities. Theresultsof the wastewatersurveyaresummarizedin APPENDIXA.

TheDistrict’sproposedmonthly residentialwastewaterbill for FY2026is $133.49. Since it isunknownwhat the comparatoragenciesareproposingfor FY2026, the District comparedits FY2025monthlyresidentialwastewaterbillsto the FY2025monthly residentialwastewaterbillsfor the neighboringagencies. Thesurveyindicatesthat the District’scurrentwastewaterratesareabovethe averageamongstits comparator agencies. Theaveragemonthlybill for the regionis $122.39andthe District’srate is 133.49per month, or about9% more.

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WastewaterEnterpriseFund
Thereareapproximately13,984wastewateraccountsservicedbytheDistrict. Mostaccounts are residentialwith the remainderconsistingof commercialand institutionalaccountsas shownin Table1. ThewastewaterserviceareaincludesFosterCityonlyshownin APPENDIX C.

TheDistricthasapproximately $27.4 millionin its wastewatermaintenanceandoperations reservefundasshownin Table2. TheDistrict’sminimumoperatingreservetargetis25% of operatingandmaintenanceexpenses (est. to beabout $2.7 million). $2.7 millionor 90days of operatingexpensesisaminimumtargetto ensureadequateliquidityincaseof unexpected expenditures. Wastewaterutilitiestypicallycarryamedianof 90daysto two yearsof cashon hand, with higherlevelscorrespondingto better creditratings. Accordingto S&P Global’s Table1
FosterCity / EsteroMunicipal ImprovementDistrict
Wastewater ServiceAccounts
Dataasof: 02/11/25
Numberof Accounts
Residential
SingleFamily 4,537
Townhouse/Duplex 2,294
Apartment/Condominium (Poolsw/ Restrooms) 6,906
ResidentialTotal 13,737
Commercial
Restaurants 42
Commercial/Hotels/Offices/Industrial/Laundromats 169
CommercialTotal 211
Institutional
Institutional/Schools 36
Insitutional Total 36
Total 13,984
Source: CognosSewerCustomerCountReport
CustomerClass

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2021U.S. MunicipalWaterandSewerSectorMedians, themedianAAAratedagencycarries 670daysof cashon hand. BWAprojectionsshowcash on handin the operatingreserve between500to 600daysof operatingexpenses, correspondingto AAto AA+ ratedagencies.

Table3 summarizesthecurrentwastewaterservicerates.

Table2
FosterCity / EsteroMunicipal ImprovementDistrict
WastewaterOperatingFundReserves
July1, 2024
FundReserveComponent Balance
Reservedfor Maintenance & Operation $ 27,401,539
Total $ 27,401,539
operatingandcapital expenditures.

Note: Ratemodelonly includesfund reservecomponentsavailable to fund ongoing Source: Cityof FosterCity/EsteroMunicipal ImprovementDistrict Staff Table3
FosterCity / EsteroMunicipal ImprovementDistrict
CurrentWastewaterRates
Current
FiscalYearEndingJune30 2025
Residential (flat monthly rate)
SingleFamily $ 133.49
Townhouse/Duplex 112.13
Apartment/Condominium (Poolsw/ Restrooms) 112.13
Commercial (rate per ccfof water use)
Restaurants 24.26
Commercial/Hotels/Offices/Industrial/ Laundromats 8.53
Institutional (rate per ccfof water use)
Institutional/ Schools 5.61

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Table4 summarizesthe operatingexpensesof the enterprise. Projectedoperatingexpensesareexpectedto increaseoverthe nextfive yearsbyabout6% annually. Projectionsof theDistrict’sfairshareof WWTPoperatingandmaintenance (O&M) costsassumeaDistrictflow rateto theWWTPof 21%.

Table4
Cityof FosterCity / EsteroMunicipalImprovementDistrict
WastewaterEnterpriseO&MProjection
Revised
Budget
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
EmployeeServices $ 3,056,628 $ 3,196,813 $ 3,324,686 $ 3,457,673 $ 3,595,980 $ 3,739,819 4.0% Additional StaffingExpense [2] 0 31,339 115,175 118,767 122,661 126,689 Varies Internal Services (from City) 1,522,926 1,673,613 1,715,453 1,758,339 1,802,297 1,847,354 2.5% Internal Services- Equipment ReplacementFund 462,234 401,864 411,911 422,209 432,764 443,583 2.5% Services & Supplies 801,950 933,450 956,786 980,706 1,005,224 1,030,355 2.5% EMIDShareWWTPO&M 3,800,000 4,000,000 4,200,000 5,200,000 5,300,000 5,500,000 N/A Reallocation [3] 1,045,077 1,095,234 1,122,615 1,150,680 1,179,447 1,208,933 2.5% TOTALO&M Expenditures $ 10,688,815 $ 11,332,313 $ 11,846,626 $ 13,088,374 $ 13,438,373 $ 13,896,733

6.0% 4.5% 10.5% 2.7% 3.4%
1] Basedon historical results
2] Aplaceholder for potential additional positions to support the wastewaterenterprise. 3] Costsallocated to thewastewaterenterprisefor the cost of servicesprovided to theenterpriseby Citydepartments, as documentedin the City’s cost allocation study.

Annual %
Increase [1]Expenditures FiveYearProjection

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WastewaterFinancialProjections
Wastewaterprojectionsareshownin APPENDIXB.

Table5 showsdebtserviceestimatesfor theDistrict’sshareof WWTPcosts. Annualdebtservicefor the total debtissuancesisestimated to amountto approximately $6 MM byFY2026.

TheCityof SanMateoandtheDistrictusedtheproceedsto investin therehabilitationof theiragingWWTP. Thisprojectaimsto increase theplant'scapacityto handlewet weatherflows, producehigher-qualityeffluent, enhancesystemreliability, andsupportsustainability goals. Theupgradeisdesignedto meetbothcurrentandfutureregulatoryrequirementsandprovideopportunitiesfor futurewater reuse. Additionally, newtreatmentfacilitiescomplywith NationalPollutantDischargeEliminationSystem (NPDES) permitlimits. This upgradewill alsoboostthesystem’sabilityto managewastewaterduringstormsandhelppreventsanitaryseweroverflowsinto theSan FranciscoBay.

KeyBenefitsof theProject:

Rehabilitationof theagingWWTP
Reductionof ammoniaandnitrogeneffluentconcentrationsin compliancewith theNPDESpermit Decreasedseweroverflowsandunauthorizeddischargesinto theSanFranciscoBay Table5
Cityof FosterCity / EsteroMunicipalImprovementDistrict
DebtService
DebtService FYE2025 FYE2026 FYE2027 FYE2028 FYE2029 FYE2030 FYE2031 FYE2032 FYE2033 FYE2034 FYE2035 WIFIALoan $ 730,453 $ 2,652,882 $ 2,652,882 $ 2,652,882 $ 2,652,882 $ 2,652,882 $ 2,652,882 $ 2,652,882 $ 2,652,882 $2,652,882 $2,652,882 2019Bonds 2,084,250 2,086,875 2,087,750 2,086,875 2,084,250 2,084,750 2,088,125 2,084,375 2,083,500 2,085,250 2,084,500 2023SRFLoan/Bonds 134,332 1,259,604 1,259,573 1,259,540 1,259,508 1,259,475 1,259,443 1,259,410 1,259,376 1,259,342 1,259,309 TotalDebtService $ 2,949,035 $ 5,999,361 $ 6,000,205 $ 5,999,297 $ 5,996,640 $ 5,997,107 $ 6,000,450 $ 5,996,666 $ 5,995,758 $5,997,475 $5,996,690

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WastewaterCostof ServiceAnalysis
BWAperformeda WastewaterCostof ServiceAnalysisto determineequitablecost allocationto the varioususerclasses. BWArecommendscontinuingthe practiceof placingcommercialcustomersinto three wastewaterstrengthcategories, (low, medium andhigh) basedon the StateWaterResourcesControlBoard (SWRCB) Wastewater RevenueProgramGuidelines. Lowstrengthwastewater (ClassA) customersinclude banks, laundromats, retail stores, schools, churchesandothersasshownin Table6.

Mediumstrengthwastewater (ClassB) customershavewastewaterstrengthfactorsthat areassumedto besimilarto residentialwastewaterstrengthfactors. Theyincludetypical commercialactivitiessuchaslibraries, spas, nail salons, gasstationsandbars.

Highstrengthwastewater (ClassC) customersprimarily includefood-related businesses suchasrestaurants, bakeries, dairies, wineries, catering, butchershopsandfishmarkets.

Table6
Cityof FosterCity/EsteroMunicipalImprovementDistrict
StrengthClassificationsinto Low, Medium/Domestic, andHighStrengthDischargers LowStrength Banks & FinancialInstitutions
BarberShops/HairSalons (hair cuttingonly)
PostOffices/Government
RetailStores
Libraries
Schools
Churches, Halls & Lodges
ParkingGarages
Warehouses
Medium/Commercial/ Residential - All
DomesticStrength ApplianceRepair
BeautyShops (hair cuttingw/additionaltreatments)
DryCleaners
NailSalons
PetGroomers
CommercialLaundromats
Bars & Taverns

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TastingRooms
Hospitals - General, Convalescent & Veterinarian
Hotels, Motels, B&Bs, andVacationRentals
Offices - BusinessandProfessional
Offices - Medical/Dental
Poolswith Restrooms (Clubhouse)
Theaters
CarWashes
HighTechMedicalManufacturing
LightManufacturing/Industrial
Gymor HealthClub
MachineShops
ServiceStations, Garages, Auto RepairShops
Mini Marts - W/ODishWasheror GarbageDisposal
Mini Mart with GasPumps - W/ODishWasheror GarbageDisposal Spawith VariousBeautyTreatments
HighStrength Restaurants
CoffeeShops
IceCreamParlors
Catering
Eatery
Bakeries
ButcherShops
FishMarket/Shop
Markets - with DishWasheror Garbage
Disposal
Markets - with Bakeriesor ButcherShops
Mini Marts - with DishWasheror GarbageDisposal
Wineries
Market
Dairies (milk producers, yogurt, icecreammaker)
SpecialtyFoodsManufacturing (e.g., cheeseor oliveoil maker) Note: Wastewateruserswho haveFats, Oils, andGrease (FOG) wastewill beput into the High Strengthusercategory

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Table7 summarizesthe assumedwastewaterstrength factors for the low, medium and high strengthgroupsthat arebasedon typicalstrengthsprovidedin the SWRCB’s RevenueProgram Guidelines. Thestrengthfactor for mediumstrengthcustomersis equivalentto residentialor domestic” strength, of 1.00. Thestrengthfactor for low strengthis calculatedat 0.66 andfor highstrengthiscalculatedat 2.85basedon the SWRCBguidelines.

Table7
Cityof FosterCity/EsteroMunicipalImprovementDistrict
AssumedWastewaterStrengthFactors
StrengthClass LOW LOW-MEDIUM MEDIUM HIGH
Examples: Institutional ResidentialRestaurant
Bank Offices Bakery
Flow (gpd) 200 168 200 200
BOD1 (mg/l) 135 240 240 1000
TSS2 (mg/l) 100 240 240 800
StrengthFactor 0.66 0.84 1.00 2.85
StrengthFactorFormula SF=(Flow(gpd)/200)*(0.33+(0.34*BOD(mg/l)/ 240)+(0.33*TSS(mg/l)/ 240)) WWflows andstrengthsbasedonStateWaterResourcesControlBoard'sRevenueProgramGuidelines 1 "BOD" standsfor BiochemicalOxygenDemand
2 "TSS" standsfor TotalSuspendedSolids
Townhouse, Duplex,
Apartment, Condo

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Table8 summarizesthe mass-balanceanalysisfor the City’s wastewatersystemand calculates the wastewaterratesfor eachcustomerclass. Singlefamily residencesare assumedto havean averagedaily (dry weather) flow of 200gallonsper day (gpd). Theflow estimateisbasedon the StateWater ResourcesControlBoardRevenueProgramGuidelinesTableG-1, which estimates flow in gallonsper dayper personfor residentialdwellingunitsto beup to 75gallons.

Basedon residentialoccupancydataprovidedby the Cityof FosterCity, singlefamilyresidences are estimatedto havean averageof 2.67 residentsper householdand multi-family residences are estimated to have an averageof 2.25 residentsper household (84% of a single family household).

Multi-familydwellingsarebilled basedon anestimatedflow of 168gpdor 0.84 timesthe single familyflow. Asa check, the massbalancein Table8 comparesthe total calculatedandmeasured dailywastewaterflowsfor FosterCity (averagedry weatherflow).

Theresultsagreewell with the estimateddailyflow at 2.6 million gallonsper day (mgd) andthe measuredflow at 2.4 mgd.

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Table8
Cityof FosterCity/EsteroMunicipalImprovementDistrict
Summaryof WastewaterUsersby CustomerClass
FY2025Estimate
CustomerClass EDUx Flow Calculated
EDUs1 ADWFFlow ADWFFlow BOD3 TSS4 Current
gal/day) ( gal/day)( mg/l) ( mg/l) Rate
Residential
SingleFamilyResidential 4,537 200 907,400 240 240 133.49 Townhouse/Duplex 2,294 168 385,392 240 240 112.13
Apartment/ Condos 6,906 168 1,160,208 240 240 112.13
Subtotal 2,453,000
Use Estimated Calculated
Accounts ( gal/day) Flow Factor ADWFFlow BOD3 TSS4 Current Commercial ( gal/day)( mg/l) ( mg/l) Rate
LowStrength 36 46,756 65% 30,392 135 100 5.61
Medium/ DomesticStrength 169 256,605 52% 133,329 240 240 8.53 HighStrength 42 53,757 70% 37,630 1000 800 24.26
Subtotal 357,118 201,351
Totals 2,654,351
CheckAgainstLowestActualMonthly Avg. DayFlow (May2014from LS59Flow Log): 2,367,806 1 "EDU" standsfor EquivalentDwelling Unit
2 "ADWF" standsfor AverageDryWeather Flow
3 "BOD" standsfor BiochemicalOxygenDemand
4 "TSS" standsfor Total SuspendedSolids

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LowIncomeDiscount
CurrentlytheDistricthasapproximately34customersenrolledin the Water/WastewaterRate AssistanceProgram (WWRAP), whichwasimplementedin 2020. Customersmeetingtheeligibility andqualificationrequirementsbelowaregrantedadiscountof upto $15permontheachontheir qualifyingWastewateraccounts, not to exceeda $30permonthdiscountpercustomer. Tobe eligiblefor theWWRAP, customersmustshowthat theyqualifyfor thePG&ECAREProgramor otherpublicassistanceprogramor submitproofof incomeeligibility.

Theestimatedmaximumpotentialcostof a $15/monthdiscountfor 34wastewatercustomers amountsto $6,120peryear. Sincethelow incomediscountrevenuesourcescannotbefundedwith rates, ratesareunaffectedbythedecisiononthetermsof theprogramandhencearenot required to beincludedin aProposition218notification.

TheDistrictfundsthecurrentlowincomediscountthroughnon-ratesourcesof revenuesuchas finesandpenalties, celltowerleaseandgeneralfundrevenueto maintaincompliancewith CaliforniaProposition218. Thediscountisrecommendedto beprovidedasfundsareavailable.

Latepenaltiescollectedyearto datefor wastewaterin FY2025amountedto $27,000, exceeding thecostof theprogram.

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APPENDIXB
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Table 9
City of Foster City / Estero MunicipalImprovement District Wastewater Enterprise Cash Flow Projection
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Assumptions:

Interest Earnings Rate 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Revenue Increase from Growth 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Rate Adjustment 0.00% 2.00% 2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 1.00% 1.00% Monthly Service Charge for Single Family $ 133.49 $ 133.49 $ 136.16 $ 138.88 $ 141.66 $ 144.49 $ 145.93 $ 147.39 $ 148.86 $ 150.35 $ 151.85 Beginning O&M Fund Balance $ 27,401,539 $ 28,466,000 $ 17,547,300 $ 18,795,500 $ 19,362,800 $ 20,134,800 $ 21,018,000 $ 21,879,900 $ 22,621,700 $ 24,233,100 $ 25,931,800 Operating Revenues
Service Charges 21,479,292 21,558,000 22,068,000 22,590,000 23,125,000 23,672,000 23,995,000 24,323,000 24,655,000 24,992,000 25,333,000 Connection Fees [ 1] 0 0 0 0 0 0 0 0 0 0 0
Interest Earnings [ 2] 822,046 854,000 526,000 564,000 581,000 604,000 631,000 656,000 679,000 727,000 778,000 Other Revenue 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Operating Revenue 22,302,338 22,413,000 22,595,000 23,155,000 23,707,000 24,277,000 24,627,000 24,980,000 25,335,000 25,720,000 26,112,000 Total Revenue 22,302,338 22,413,000 22,595,000 23,155,000 23,707,000 24,277,000 24,627,000 24,980,000 25,335,000 25,720,000 26,112,000 OperatingExpenses
Employee Services 3,056,628 3,196,813 3,324,686 3,457,673 3,595,980 3,739,819 3,889,412 4,044,988 4,206,788 4,375,060 4,550,062 Additional Staffing Expense 0 31,339 115,175 118,767 122,661 126,689 131,756 137,026 142,507 148,208 154,136 Internal Services ( from City) 1,522,926 1,673,613 1,715,453 1,758,339 1,802,297 1,847,354 1,893,538 1,940,876 1,989,398 2,039,133 2,090,111 Internal Services - ERF 462,234 401,864 411,911 422,209 432,764 443,583 454,673 466,040 477,691 489,633 501,874 Services & Supplies 801,950 933,450 956,786 980,706 1,005,224 1,030,355 1,056,114 1,082,517 1,109,580 1,137,320 1,165,753 EMID Share WWTP O&M 3,800,000 4,000,000 4,200,000 5,200,000 5,300,000 5,500,000 5,600,000 5,800,000 6,000,000 6,000,000 6,000,000 Reallocation 1,045,077 1,095,234 1,122,615 1,150,680 1,179,447 1,208,933 1,239,156 1,270,135 1,301,888 1,334,435 1,367,796 Operating Expenses 10,688,815 11,332,313 11,846,626 13,088,374 13,438,373 13,896,733 14,264,649 14,741,582 15,227,852 15,523,789 15,829,732 Operating Net Revenue 11,613,523 11,080,687 10,748,374 10,066,626 10,268,627 10,380,267 10,362,351 10,238,418 10,107,148 10,196,211 10,282,268 Capital Expenses
Transfer Out - CIP 7,600,000 16,000,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 2,500,000 2,500,000 2,500,000 Capital Expenses 7,600,000 16,000,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 2,500,000 2,500,000 2,500,000 Annual Debt Service 2,949,035 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 5,996,690 Debt Service 2,949,035 5,999,361 6,000,205 5,999,297 5,996,640 5,997,107 6,000,450 5,996,666 5,995,758 5,997,475 5,996,690 DebtCoverage [3] 3.94 1.85 1.79 1.68 1.71 1.73 1.73 1.71 1.69 1.70 1.71 Total Expenditures 21,237,850 33,331,674 21,346,831 22,587,672 22,935,012 23,393,840 23,765,099 24,238,248 23,723,610 24,021,263 24,326,422 RevenuesLessTotal Expenditures 1,064,489 ( 10,918,674) 1,248,169 567,328 771,988 883,160 861,901 741,752 1,611,390 1,698,737 1,785,578 Ending O&M Fund 28,466,028 17,547,326 18,795,469 19,362,828 20,134,788 21,017,960 21,879,901 22,621,652 24,233,090 25,931,837 27,717,378 Cash Fund Reserve Test: Minimum Fund
Balance > 25% O&M Expenses
Year-end O&M Fund 28,466,028 17,547,326 18,795,469 19,362,828 20,134,788 21,017,960 21,879,901 22,621,652 24,233,090 25,931,837 27,717,378 25% Operating Expenses 2,672,204 2,833,078 2,961,656 3,272,094 3,359,593 3,474,183 3,566,162 3,685,396 3,806,963 3,880,947 3,957,433 of Days O&M in Reserves 972 565 579 540 547 552 560 560 581 610 639 Pass/ fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS 1] Connection fees excluded from analysis.
2] Projected interest calculated as 3% of the Beginning Fund Balance of the Wastewater O&M Fund. 3] Minimum requirement debt service covereage requirement = 1.25x Five YearProjection ExtendedYearProjection

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Table10
City of Foster City / Estero Municipal Improvement District ProjectedWastewaterRateImpacts
Current
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
Rate Increase 0.00% 2.00% 2.00% 2.00% 2.00%
Residential ( flat monthly rate)
SingleFamily $ 133.49 $ 133.49 $ 136.16 $ 138.88 $ 141.66 $ 144.49 Increase ( Decrease) 0.00 2.67 2.72 2.78 2.83
Townhouse/Duplex $ 112.13 $ 112.13 $ 114.37 $ 116.66 $ 118.99 $ 121.37 Increase ( Decrease) 0.00 2.24 2.29 2.33 2.38
Apartment/Condominium (Pools w/ Restrooms)$ 112.13 $ 112.13 $ 114.37 $ 116.66 $ 118.99 $ 121.37 Increase ( Decrease) 0.00 2.24 2.29 2.33 2.38
Commercial ( rate per ccf of water use)
HighStrength $ 24.26 $ 24.26 $ 24.75 $ 25.25 $ 25.76 $ 26.28 Increase ( Decrease) per ccf 0.00 0.49 0.50 0.51 0.52
Medium/DomesticStrength $ 8.53 $ 8.53 $ 8.70 $ 8.87 $ 9.05 $ 9.23 Increase ( Decrease) per ccf 0.00 0.17 0.17 0.18 0.18
LowStrength $ 5.61 $ 5.61 $ 5.72 $ 5.83 $ 5.95 $ 6.07
Increase ( Decrease) per ccf 0.00 0.11 0.11 0.12 0.12
Projected - FiscalYearEndingJune30ProjectedRates

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Table11
City of Foster City / Estero MunicipalImprovementDistrict ProjectedWastewaterRateImpacts
Current
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
Rate Increase
Single Family Residential Flat Monthly Flat $ 133.49 $ 133.49 $ 136.16 $ 138.88 $ 141.66 $ 144.49 Increase ( Decrease) 0.00 2.67 2.72 2.78 2.83
Increase ( Decrease) 0.00% 2.00% 2.00% 2.00% 2.00%
Projected - FiscalYearEndingJune30RateChangeScenarios

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133.49 $ 133.49
136.16
138.88
141.66
144.49
120
130
140
150
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
FosterCity/EsteroMunicipalImprovementDistrict
Monthly SingleFamilyResidentialWastewaterBill
ProjectedSFRMonthly Bills

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Page1 of 10 (EMIDRate Setting Procedures; March 24, 2025) EMIDRate Setting Procedures
Overview of Rate Setting Procedures
These “RateSettingProcedures” (“Procedures”) describe the processesthat will be followed by the EsteroMunicipal Improvement District (“District”) in establishinganynew or increasedwater rates and wastewaterrates. TheseProceduresare basedon the “BackgroundInformation and Dened Terms” set forth on Exhibit “A,” attached hereto. Asused in these Procedures, the term “rate” or rates” may be used to refer to the processes the District will follow for both water rates and wastewaterrates.

TheRateSettingProceduresinclude compliance with Proposition 218 (including the consideration of “written protests” from record owners) as well as the proceduresfor exhaustingadministrative remediesunder GovernmentCode section 53759.1 (including the consideration of “written objections” from record owners). Forthe purpose of considering and counting written protests and written objections, the District will consider the term “record owner” to include tenancies of real property wheretenants aredirectly liable to paythe rates to the District (consistent with Proposition 218; California Constitution Article XIIID, Section 2(g)).

At a special meetingof the District Boardof Directors (“Board” or “District Board”) on March 24, 2025, the Boardapprovedthese Procedureswhich includes
A. For any water rates or wastewater rates adopted or approved by the Board that complies with these Procedures, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with Article XIIID of the California Constitution for thoserates, unlessthat personor entityhastimelysubmittedto theDistrict a written objectionto thoseratesin accordancewith theseProceduresthat species the groundsfor allegingnoncompliancewith Proposition218.B. TheBoardherebyadoptsthe administrative recordprinciplescontainedin GovernmentCodesection53759.2.

C. TheseProcedures will take effect upon approval on March 24, 2025, and will applyto anyproposednewor increasedwaterratesof whichnoticeis providedin accordance with these procedures.

D. TheDistrict Board authorizes the District Manager to take such other and additional actions as may be reasonably necessary to implement the purpose of these procedures and implement the exhaustion of administrative remedies procedure adopted herein.

Rate Setting Procedures

1. Overview of Exhaustion Procedure (GovernmentCode section 53759.1)

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Page2 of 10 (EMIDRate Setting Procedures; March 24, 2025) If the District publishes a notice of public hearingidentifying proceduresfor property ownersto submit written objections (described in Section 2(b), below),1 the District will follow the exhaustionprocedure” set forth herein, to be conducted concurrently with the Proposition218 process, for the District Board’s consideration of anyproposednew or increasedwater ratesor wastewaterrates. Thisexhaustionprocedure shall be conducted in accordance with “Proposition 218” (California Constitution Article XIIID; as it is implemented by the Legislatureat Government Code sections 53750 – 53759.2; and as it has beeninterpreted by judicial decisions), and the particular procedures set forth in GovernmentCode section 53759.1. Theexhaustionprocedure providesan opportunity for record ownersto submit a “timely written objection” to identify substantive basesfor assertingproposed ratesdo not comply with Proposition 218. A ”record owner” may be referredto in these Proceduresas the “owner” or “property owner.” Theprocesses described herein may be referredto as “these Procedures.” a. District staff will post on its internet website a notice of the exhaustionprocedure, and this notice will be prominently incorporated in the Proposition218 public hearingnotice mailed to each record owner.
b. Thenotice will identify the date and time by which timely written objections must be submitted to the District, and the date will be no less than 45 calendar daysafter the notice is mailed to record owners.
c. District staff willreviewtimely writtenobjections andpreparewritten responses providingthe substantivebasis for retainingor altering the proposed ratesin responseto the written objections. District staff will presentits writtenresponsesto theDistrict Board prior to the close of the public hearingfor the Proposition 218protest hearing, and the District Boardwill reviewto determine whether action is neededin responseto the written objections or written responses.
d. Followingthe District Board’s reviewand responseto timely written objections and written responses, it is within the discretion of the District Boardto proceed with the Proposition 218protest hearingprocess, as described herein, to consider approvalof the proposed rates.
e. Rate Challenger Must Exhaust Administrative Remedies. No claim, suit for damages, suit for injunctive relief, petition for writ of mandamus, or administrativeor judicial proceedingshall be brought againstthe District (including the District Board, or its employees, officers, or designees) regarding a challengeto a proposedrate unlessthe challengingparty rst exhaustsits administrative remediesby complying with these Proceduresand submitting to the District a timely written objection.

2. Notice of Proposition 218 Public Hearing and Initiating Exhaustion Procedure Priorto approvingor imposing anynew or increasedrates, the District will conduct a public hearing and provideprior written notice to each record owner of the hearingand the exhaustionprocedure 1 If the District publishes a notice of public hearingthat doesnot identify proceduresfor property ownersto submit written objections , the District will conduct the public hearingin compliance with Proposition218, and consider anywritten protests in accordance with these Procedures.

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Page3 of 10 (EMIDRate Setting Procedures; March 24, 2025) as described in these Procedures. Tothe extent the District sendsa regularbilling statement for water or wastewater serviceprovided to a “customer” (e.g., a “tenant” or other “ratepayer”) who is not the record owner, the District will also mail the written notice to the customer at the addressfor the billing statement. TheDistrict will mail the public hearingnotice to each record owner no later than 45 daysprior to the public hearing. Thecontents of the hearingnotice will include:
a. Compliance with Proposition218:
1) Thedate, time, and location of the public hearing.
2) Theamount of the rates imposed on each parcel. This may be satisfied by identifying the rate amounts for each customer type subject to the rates. 3) Thebasis upon which the amount of the proposed rates were calculated. 4) Thereasonfor the rates.
5) Thelocation to which all owners must submit signed paper written protests to the District via mail or personal delivery.
6) To the extent relevant to support bond covenants that rely on revenue from rates, pursuant to Government Code section 54354.5, the notice will identify the opportunity for record owners to be heard as to whether the proposed rates are not in compliance with anyrequirements of the RevenueBondLawof 1941 (Government Code Sections 53000 – 55821), including: ( a) the rates are discriminatory or excessive, or ( b) the rates will not be sufficient under the provisions of any outstanding revenuebonds (including GovernmentCode section 54515). 7) How members of the public may obtain additional information regardingthe proposed newor increasedfee, including a link to information that is availableon the District’s website or by requestinga mailed copy.
b. Compliance with the Exhaustion Procedure for Written Objections. If the District choosesto follow the exhaustionprocedure for written objections, concurrently with mailing the public hearingnotice, the District will post on its internet website the written basisfor the proposed rates and a link to the Proposition 218 public hearing notice which will be supplemented with the following prominently displayed information:
1) The “deadline” (date and time) by which a “timely written objection” must be submitted to the District. Thedeadline will beno earlier than 45daysafter the District mails to property ownersthe notice of the public hearing. 2) Thelocation to which all ownersmust submit signedpaperwritten objections to the District via mail, or personal delivery.
3) All substantive requirements for submitting a written objection. Therecord owner must comply with the requirements set forth in Proceduressection 3, below,

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Page4 of 10 (EMIDRate Setting Procedures; March 24, 2025) including specifying the grounds on which the owner alleges the proposed new or increasedrates does not comply with Proposition 218.
4) Notice that: (a) any person’s failure to submit a timely written objection bars any right of that person to challenge the proposed new or increased fee through a legal proceeding; and (b) there is a 120-day statute of limitations for challengingthe proposed new or increased rates (in accordance with Government Code section 53759).
c. TheDistrict will mail the public hearingnotice to each record owner of a parcel that is subject to paymentof the new or increasedfee. Thenotice shall be mailed to owner’s addressshown on the last equalizedproperty tax assessmentroll. 1) Thereis a rebuttable presumption that the most recent equalizedproperty tax assessmentroll of the SanMateo County Recorderis sufficient evidence ofthe record owner of each parcel. A personmay rebut the presumption by providingto the District written proof of ownership.
2) TheDistrict Manager, or designee, will identify those personsauthorizedto provideproper mailing of anynotice required by these Procedures, and an affidavit of the manner and timing of those mailings shall constitute conclusive proof of mailing in the absenceof fraud.
3) Failureof anyperson to receivenotice shall not invalidate the hearingor its results.
4) TheDistrict may also providesupplemental notices to the addresswhere the District customarily mails the billing statement for rates. d. Concurrently with publishing and mailing the public hearingnotice, the District will post on its website relevant information regardingthe proposed new or increasedfee including a copy of the cost of service analysis (which may be referredto as a “rate study”) which providesdocumentation of compliance with all substantive requirements of Prop218 regardingthe calculation of the amount of the proposed new or increasedfee.

3. Requirements for Submitting Timely Written Objections In order for a record owner to submit a timely written objection, it must:
a. Bereceived by the District at the location identified on the public hearingnotice, no later than the deadline identified on the public hearingnotice. Thedeadline maybe no earlier than 45 daysafter the District mails to record owners the notice of public hearing. b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signedby the record owner, or otherwise identifying that the record owner submitted the written objection, subject to verification by the District.

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Page5 of 10 (EMIDRate Setting Procedures; March 24, 2025) c. Specify the grounds for alleging the proposed rates do not comply with Proposition 218. Thegroundsmust identify (i) the substantive requirement of Proposition218, and (ii) the reason the proposed rates do not comply with that requirement. For any proposed new or increased “fee” for a property-related service (such as water rates or wastewater rates), relevant substantive requirements of Proposition 218include:
1) Revenues derived from the rates shall not exceed the funds required to provide the property related service.
2) Revenuesderivedfrom the rates shall not be usedfor anypurpose other than that for which the fee or chargewas imposed.
3) Theamount of the rates shall not exceedthe proportional cost of the service attributable to the parcel.
4) No rates maybe imposed for a serviceunless that serviceis actually used by, or immediately available to, the owner of the property in question. Ratesbased on potential or future use of a serviceare not permitted.
5) No rates may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

4. Requirements for Submitting Timely Written Protests
TheDistrict will consider each timely written objection to also serveas a timely written protest from a record owner.

In order for a record owner to submit a timely written protest, to be considered as a part of the Proposition 218 protest hearingdescribed in Section 6, below, it must:
a. Bereceived by the District at the location identified on the public hearingnotice, no later than the close of the public testimony portion of the public hearing. b. Be in writing (1) identifying the name of the record owner, and the street address or assessor’s parcel number (or other clear identification) of the property subject to the rates; and (2) signedby the record owner, or otherwise identifying that the record owner submitted the written objection, subject to verification by the District. c. Must clearly identify that the record owner opposes the proposed new or increased rates that are the subject of the hearing.
d. Will only be counted as one protest per parcel. Thatmeans if anyone or more record ownersof a parcel submits a timely written protest (or timely written objection) for the same parcel, it will be counted as one timely written protest.

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Page6 of 10 (EMIDRate Setting Procedures; March 24, 2025) e. Record owners of multiple parcels within the District may file one protest for each parcel owned within the District’s servicearea.
f. A record owner may withdraw a written protest only if the withdrawal is submitted in writing by the record owner clearly indicating an intent to withdraw for an identified property, and it is received by the District at the location (and no later than the time) for submitting written protests. After a written protest is withdrawn, a record owner may submit a new or replacement written protest in accordance with the requirements of these Procedures. No other modification to a timely written protest may be made. g. TheDistrict Clerk shall take custody of all submitted written objections and written protests.
1) In order to protect the integrity of the procedures for considering written objections and written protests as described in these Procedures, all written objections and written protests shall remain confidential until the District Manager or designee) has determined they may be published in accordance with the criteria in paragraph4(g)(2).
2) Anysubmitted written objection and written protest shall be a public record, subject to the District’s determination that the public interest served by not disclosing clearly outweighs the public interest served by disclosure under Government Code section 7922.000. As a general rule, the District finds there is a substantial public interest in not disclosing written objections and written protests to protect the integrity of the process described herein during the time that: ( A) written objections are still being submitted and (B) prior to the time that the Brown Act meeting agendais posted (e.g., at least 72 hours before a regularmeeting under GovernmentCode section 54954.2).

5. District’s Response to Timely Written Objections
At the close of the written objection period, District staff shallreviewtimely writtenobjections and shall draft written responsesto the written objections. TheDistrict’s written responsewill include:
i) the groundson which the objection is (or is not) resulting in amendments to the proposednew or increasedrates; and (ii) an explanationof the substantivebasis for retainingor altering the proposed new or increasedrates.

District staff shall presentthewritten responsesto the District Boardat the public meeting that was specied in the public hearingnotice described in Section 2, above. a. In accordance with the BrownAct, the public will be providedan opportunity to addressthe District Boardprior to the Council’s action related to the timely written objections and written responses. (SeeGovernmentCode section 54954.3(a).) b. In accordance with GovernmentCode section 53759.1(d), the District Board, in exercisingits legislativediscretion in considering timely written objections and written responses, shall determine for the proposed new or increasedrateswhether further review,

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Page7 of 10 (EMIDRate Setting Procedures; March 24, 2025) clarication, or reduction is needed, and whether to proceed to the Proposition218 protest hearing.

6. Conducting the Proposition 218 Protest Public Hearing If the District Boarddetermines to proceed to the Proposition 218protest public hearingfor proposed new or increasedrates (as previouslynoticed in accordance with Section 2, above), the public hearingshall be conducted consistent with the following:
a. TheDistrict Boardwill open the public hearingand consider all evidencepresented during the hearingincluding the public hearingnotice and all documents referencedtherein particularly including the RateStudy), all written objections, written responses, written protests, and anytestimony, documents, or information presentedduring the public hearing.
b. Priorto closing the public hearing, the District Boardwill request if there areany additional written protests to be submitted to (or withdrawn from) the District. c. TheDistrict Boardwill then close the public hearingand request a report from the District Clerk to identify the number of timely written protests compared to the total number of parcels subject to the new or increasedfees.
1) Amajority protest existsonly if the number of timely written protests exceedsone-half of the parcels servedby the District.
2) If the District Clerk determines that additional time is neededto tabulate timely written protests, the District Boardshall recessor continue the public meeting to providesufficient time for theDistrict Clerk to complete the tabulation. 3) If the District Clerk determines that there is a majority protest, the District shall not impose the new or increasedrates.
4) If the District Clerk determines that there is not a majority protest, the District Boardshall continue its deliberations and take action on the proposednew or increasedrates.
5) TheDistrict Clerk’s determinations under these Proceduresshall be the nal determination of the District subject to appropriate judicial review. Thisshall include the District Clerk’s determinations that: (a) a written protest meets the requirements for a timely written protest in accordance with these Procedures; or b) a majority protest has (or has not) been submitted for the proposed rates.

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Page8 of 10 (EMIDRate Setting Procedures; March 24, 2025) Exhibit A
Background Information and Dened Terms
A. TheEstero Municipal Improvement District (“District”) provides water and wastewater services to property owners ( who may also be referred to as “owners”) within the District’s servicearea (as describedin ExhibitB), and establishesthe amount of water and wastewater rates to be charged customers in accordance with Estero Municipal Improvement District Code District Code”) andapplicablelaw.

B. California law authorizes the District to charge a fee to the property owners or property owners’ “tenants” (who maybe collectivelyreferredto as “ratepayers” or “customers”) for the proportionate cost of providing water and wastewater services to each customer in accordance with the proceduralandsubstantiverequirementsof the voter-approvedballot measureknown as “Proposition 218” (California Constitution Article XIII D; as it is implemented by the Legislatureat GovernmentCodesections 53750 – 53759.2; and as it has beeninterpretedby judicial decisions). Thephrase “rate” or “rates” may be used to refer to the processes the District will follow for both waterratesandwastewaterrates.

C. Under Proposition 218, the District’s rates are considered to be a “fee” for a “property- related service” (also referred to as a “property-related fee”), subject to the particular requirements of Constitution Article XIIID, Section 6. Aproperty- related fee is one imposed upon any parcel or person as an incident of property ownership. In general, the District may only increase its existing rates if the District ( 1) calculates the rates in accordance with Proposition 218, (2) conducts a noticed public hearingbefore the District Board (“District Board”), as described in these procedures and (3) a “timely written protest” is not submitted by property owners representing a majority of the parcels served by the District.

D. Under Government Code sections 53759.1 and 53759.2 (known as “AB 2257”), the District may establish a supplemental process for objecting property owners to exhaust administrative remedies, also described in these procedures, by which the District will take specied actionsin responseto any “timely written objection.” Anytimelywrittenobjectionwill also be counted by the District as a timely written protest. However, under this process, only an owner who submits a timely written objection will have a right to challenge a proposed increase in water rates or wastewater rates through a legal proceeding. (These supplemental processes were authorized by Assembly Bill No. 2257, Chapter 561, Statutes of 2024, effective January 1, 2025.)
E. Thepurpose of these Procedures is to document the processes the District will follow in considering proposed new or increased rates, including compliance with Proposition 218 as well asthe exhaustionof administrativeproceduresunderAB2257. Theprocessesdescribedin these Procedures provide a meaningful opportunity for a property owner to submit a written objection to proposednew or increasedratesearly in the rate considerationprocess, and to provide an opportunity for the District to address or resolve any objections before the District Boardmakesa nal decisiononwhetherto adoptproposedratespursuantto Proposition218.

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Page9 of 10 (EMIDRate Setting Procedures; March 24, 2025) F. TheseProcedures identify the process the District will follow in order to implement the administrative remedies to be exhausted by property owners under Government Code sections 53759.1 prior to an ownerinitiatinglitigationto challengethe rates. In general, at least 45 days before a public hearing to consider a proposed new or increased rates, the District will make availablethe proposedrates, and post the written basisfor the proposedrateson its internet website. TheDistrict will provide at least 45 days for any property owner to review the proposed ratesandtimelysubmitto the District a writtenobjectionto the ratesthat species the grounds for alleging noncompliance with Proposition 218. The District will consider and provide a substantivewrittenresponseto eachtimelywrittenobjectionsubmittedpriorto thecloseof the public hearing described in Section 1(C).

G. For any rates approved by the District implementing these Procedures, a person or entity shall be prohibited from bringing a judicial action or proceeding alleging noncompliance with ArticleXIIID of the CaliforniaConstitutionfor thoserates, unlessthat personor entity has timely submitted to the District a written objection to those rates that species the grounds for allegingnoncompliancewith Proposition218.

H. TheDistrict Board hereby intends to adopt the exhaustion of administrative remedies procedureas outlined in GovernmentCode section 53759.1, and the administrativerecord principles contained in Government Code section 53759.2.

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Page10 of 10 (EMIDRate Setting Procedures; March 24, 2025) Exhibit B
EsteroMunicipal Improvement District and City of FosterCity Map EMIDprovides water service in the City of Foster City and the Mariner’s Island portion of SanMateo. EMIDprovideswastewaterservicein the Cityof FosterCity.

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NOTICEOF

PUBLIC HEARINGON

PROPOSEDWATERAND

WASTEWATERRATES
Monday, June2, 2025, 6:30P.M.

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The EsteroMunicipalImprovementDistrict (EMID)
provideswaterservicetoFosterCityandaportionofthe
Cityof SanMateoimmediatelyadjacentto thewest,
referredtoastheMarinersIslandarea. EMIDprovides
wastewaterservicetoFosterCity. StatelawallowsEMID
tofollowtheprocessdescribedinthisnoticetosetrates
sufficienttocovercostsofoperatingandmaintainingthe
facilitiesneededto providetheseservices. EMIDwill
holda publichearingonJune2, 2025at 6:30pmto
considerapprovalof proposedupdatedwaterand
wastewaterrates, totakeeffectonJuly1, 2025. If the
updatedratesareapproved, theywillincludeannual
adjustmentsforcostof livingforFY2025-2026to FY
2029-2030. TheEMIDBoardwillconsiderallinformation
presentedregardingtheproposedratechanges, including
anytimelywrittenobjectionsandprotestspriortomaking
adecision.

Thehearingwillbeheldasahybridmeetingin-personand
byteleconference/videoconference, subjecttoappropriate
regulations. Themeetingaddressis620FosterCity
Boulevard, FosterCity, CA94404. Final
teleconference/videoconferenceinformationwillbelisted
onthepublishedagenda. Thepublicmayparticipateby
submittingcommentsviaemailto
[email protected]
publiccommentbyjoiningthemeetingviateleconference
and/orvideoconference, orinperson. Instructionsonhow
tojointhemeetingareincludedinthetopportionofthe
agendapostedat: www.fostercity.org/agendasandminutes.

Estero Municipal
ImprovementDistrictProposed
RateChanges
ARateStudywaspreparedpursuanttogoverninglawin
Prop218” (CaliforniaConstitutionArticleXIIID, Section
6) identifyingeachparceltobechargedwaterand
wastewaterrates, theamountoftherates, thebasis
uponwhichtheratewascalculated, andthereasonfor
thechangeinrates. Additionalinformationregardingthe
proposedrates, includingtheRateStudy (preparedby
BartleWellsAssociates) andtheRateSetting
ProceduresareavailableontheCity’swebsite:
www.fostercity.org/publicworks/page/water-and-
wastewater-rates.

HowtoSubmitaWrittenObjectionorProtest
AnyobjectionORprotestmust: (1) beonapaperwriting
identifyingthenameofthe “customerofrecord” (either
thepropertyowneroratenantdirectlyliabletopaythe
rates), andthestreetaddressorotherclearidentification
ofthepropertysubjecttotherates; (2) besignedbythe
customerofrecord; and (3) complywiththerelevant
requirementsforawrittenobjectionorwrittenprotest (as
outlinedbelowandsummarizedintheRateSetting
Procedurespostedat
www.fostercity.org/publicworks/page/water-and-
wastewater-rates.). Donottransmitobjectionsor
protestsviaemailorotherelectronictransmission. The
maindifferencesbetweenanobjectionsandaprotest: a)
thedeadlinefortimelysubmission; b) theadditional
informationrequiredforeach; andc) atimelywritten
objectionisrequiredpriortobringingalegalchallengeto
theproposedrates.

AdditionalRequirements: TimelyWrittenObjection
A timelywrittenobjectionmustspecifythegroundsfor
allegingthattheproposedratesdonotcomplywithProp
218. The RateSettingProceduressummarizethe
relevantrequirementsofProp218, andtheRateStudy
documentsEMID’s compliancewith Prop 218.

ThedeadlineforwrittenobjectionsisMay15, 2025at
5pm. Tobeconsideredtimely, suchobjectionsmustbe
receivedbytheEMIDCityClerk/DistrictSecretaryatthe
returnaddressonthisnotice.

AdditionalRequirements: TimelyWrittenProtest
Awrittenprotestmustclearlystatethatthecustomerof
recordopposestherateincrease. To be considered
timely, a writtenprotestmustbereceivedbytheEMID
CityClerk/DistrictSecretaryatthereturnaddressonthis
noticepriortothecloseofthepublictestimonyportionof
theJune2, 20256:30pmpublichearing. Anytimely
writtenobjections (seeabove) willalsobeconsidereda
timelywrittenprotest. Onlyoneprotestwillbecounted
perparcel. Ownersof multipleparcelsmayfile one
protestfor eachparcelownedwithinEMID’s service
area. If timelywrittenprotestsare receivedfrom
customersofrecordofa majorityofparcelswithinthe
EMIDservicearea, theproposedrateincreasewillnot
beimplemented.

RateAssistanceProgram
TheDistrictmaybeabletoofferRateAssistance
discountstoqualifyingcustomers. Tolearnmoreorto
apply, visit: www.fostercity.org/wwrap.

WaterConservationTips
Waterisapreciousresource! Thankyoufortaking
stepstosavewaterandloweryourmonthlybill.

Switchfromlawntodrought-tolerantlandscape.

Turnthefaucetoffwhilebrushingyourteeth.

Runonlyfullloadsintheclotheswasheror
dishwasher.

Fixleaksaroundyourhome
WaterConservationRebates
Getmoneytohelppayforwater-savingchangesat
yourhomeorbusiness. Forinformationonwater
conservationrebateprograms, visit
www.fostercity.org/rebates.

You are hereby notified that in order to file a
judicial action or legal proceeding to challenge the
proposed water and wastewater rates, you must
file a timely written objection, and you must
commence the action or proceeding within 120
days of EMID’s approval of the rates. Failure to
submit a timely written objection bars any right to
challenge the proposed rates through a judicial
action or legal proceeding. (Gov Code Section
53759.1(c).) There is a 120-day statute of
limitations for challenging any new, increased, or
extended water fee, rate, or charge.

Gov Code Section 53759.)

8.2 Attachment 2 - EMID Resolution No. 3805 Adopting Wastewater Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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WastewaterRates
Wastewaterratesprovidetherevenueneededtopayforthestaff, suppliesand capitalprojectsrequiredtomaintaintheDistrict’swastewatercollectionand conveyancesystem. Inaddition, theDistrictisinapartnershipwiththeCityof SanMateotoprovidetreatmentoftheDistrict’swastewaterandapproximately 24% ofthecapitalimprovementcoststoexpandthejointly-ownedWWTP, for whichtheDistrictisresponsibleforapproximately $171.9million. Fordetails onprojectedEMIDwastewaterratesinFY2025-2026throughFY2029-2030 pleasevisit: www.fostercity.org/publicworks/page/water-and-wastewater-rates.

EMIDprovideswastewaterservicetoFosterCity. Ifyoureceivewaterservice fromEMIDinSanMateo, yourwastewaterserviceisprovidedthroughtheCity ofSanMateo, notthroughEMID. ForinformationonSanMateowastewater, visit: www.cityofsanmateo.org/1085/Sewer-Service-Charge.

MonthlyChargeCurrent
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
SingleFamily $133.49 $ 133.49 $ 136.16 $ 138.88 $ 141.66 $ 144.49 Townhouse/
Duplex
perunit)
112.13 $ 112.13 $ 114.37 $ 116.66 $ 118.99 $ 121.37
Apt/Condo
perunit)$
112.13 $ 112.13 $ 114.37 $ 116.66 $ 118.99 $ 121.37
Commercial
perccf)
HighStrength $ 24.26 $ 24.26 $ 24.75 $ 25.25 $ 25.76 $ 26.28 Med/Domestic
Strength

8.53 $ 8.53 $ 8.70 $ 8.87 $ 9.05 $ 9.23
LowStrength $ 5.61 $ 5.61 $ 5.72 $ 5.83 $ 5.95 $ 6.07
WaterRatesandPass-ThroughforWaterUseRates
Waterratesincludefixedwatermeterchargesandwaterusecharges.

Adjustmentswererequiredtoprovidenecessaryrevenueforthe
maintenance, operationalandcapitalcostsassociatedwiththewater distributionenterprise. Asignificantdriverfortheproposedwateruserate increasesisprojectedincreasesintheSanFranciscoPublicUtilities Commission (SFPUC) wholesalewaterrate. GovernmentCodesection 53756allowsEMIDto “passthrough” changestothewholesalecosttoits customers. ItisproposedthatEMIDimplementa “pass-through” adjustment wherebychangesbySFPUCtoitsratesinexcessoftheestimatedincreases willbereflectedinEMID’sretailwaterratesduringthe5-yearperiodcovered bythisNotice. EMIDcustomerswillbenotifiedofanysuchpass-through adjustmentsatleast30dayspriortothechangeinrates (onoraftereach July1ofthe5-yearperiod). Ratesarepresentedperccf (hundredcubic feet). Additionaldetailsregardingproposedwaterrates, includingthe formulaforthispass-throughratecanbefoundintheRateStudyhere:
www.fostercity.org/publicworks/page/water-and-wastewater-rates.

WaterUseRatesforSingle-FamilyResidences
Single-familyresidenceswithresponsibilityforindoor (domestic) andoutdoor irrigation) waterusesareplacedinatieredratestructurewherebythecost ofwaterincreasesbasedontheamountofwaterusedinabi-monthlybilling cycleasfollows:

PerCCFCharge
Current
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
Tier1—0to20ccf $ 6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84 Tier2— Over20ccf $ 7.33 $ 7.56 $ 7.79 $ 8.08 $ 8.34 $ 8.59 WaterUseRatesforIrrigationCustomers
Irrigationcustomerswithseparateirrigationwatermetersareprovidedan individually-preparedwaterbudgetbasedon the squarefootageof landscapingbeingwatered, wherebythecostof waterincreasesforthe amountofwaterusedovertheallotment. Customizedreportsthroughthe yearletcustomersknowhowtheyaredoinginwateruse.

PerCCF
Charge Current
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
MonthlyWaterConsumptionBudget
100% $ 6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84
100%$ 7.80 $ 7.76 $ 8.00 $ 8.29 $ 8.55 $ 8.79
WaterUseRatesforCommercialCustomersandFireLine
PerCCF
Charge Current
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
AllUsage $ 6.72 $ 6.92 $ 7.14 $ 7.41 $ 7.68 $ 7.96
FixedWaterMeterRates
Thefixedwatermeterchargeensuresthecontinuedsafedeliveryofwater throughthesystem. Themeterratiosarebasedonmetersizein
compliancewiththeAmericanWaterWorksAssociation.

Monthly
Charge Current
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
Domesticand/orIrrigationCustomers
5/8” and3/4”$ 28.85 $ 31.30 $ 33.80 $ 36.15 $ 38.70 $ 41.40 1”$ 48.08 $ 52.17 $ 56.33 $ 60.25 $ 64.50 $ 69.00

1.5”$ 115.40 $ 125.20 $ 135.20 $ 144.60 $ 154.80 $ 165.60 2”$ 153.87 $ 166.93 $ 180.27 $ 192.80 $ 206.40 $ 220.80 3”$ 336.58 $ 365.17 $ 394.33 $ 421.75 $ 451.50 $ 483.00 4”$ 605.85 $ 657.30 $ 709.80 $ 759.15 $ 812.70 $ 869.40 6”$ 1,346.33 $ 1,460.67 $ 1,577.33 $1,687.00 $ 1,806.00 $1,932.00 8”orgreater $ 2,308.00 $ 2,504.00 $ 2,704.00 $2,892.00 $ 3,096.00 $ 3,312.00 PrivateFireServiceProtectionMeter
1-1/12 & below $ 40.39 $ 43.82 $ 47.32 $ 50.61 $ 54.18 $ 57.96 2”$ 53.95 $ 58.53 $ 63.21 $ 67.60 $ 72.37 $ 77.42
3”$ 117.71 $ 127.70 $ 137.90 $ 147.49 $ 157.90 $ 168.91 4”$ 212.05 $ 230.06 $ 248.43 $ 265.70 $ 284.45 $ 304.29 6”$ 471.12 $ 511.13 $ 551.95 $ 590.33 $ 631.97 $ 676.06 8” orgreater $807.80 $ 876.40 $ 946.40 $ 1,012.20 $ 1,083.60 $1,159.20RatesarepresentedperCCF. One (1) CCF =748gallons

PUBLICHEARINGNOTICE
Questions
Ifyouhavequestionsregardingthisnotice, pleasecontact (650) [email protected].

WaterUseRatesforMulti-FamilyResidences (perlivingunit)
Multi-familyresidenceswithresponsibilityforindoorwaterusesareplaced inatieredratestructurewherebythecostofwaterincreasesbasedonthe amountofwaterusedinabi-monthlybillingcycleasfollows:

PerCCF
Charge Current
Proposed
FY25-26
Proposed
FY26-27
Proposed
FY27-28
Proposed
FY28-29
Proposed
FY29-30
Tier1—0to10ccf $ 6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84 Tier2—Over10ccf $ 7.36 $ 7.54 $ 7.77 $ 8.06 $ 8.32 $ 8.57

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Exhibit D – Wastewater Rate Schedule
Monthly
Charge Current
Proposed
FY 25-26
Proposed
FY 26- 27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Single Family $ 133. 49 $ 133. 49 $ 136. 16 $ 138. 88 $ 141. 66 $ 144. 49 Townhouse/
Duplex
per unit)
112. 13 $ 112. 13 $ 114. 37 $ 116. 66 $ 118. 99 $ 121. 37 Apt/ Condo
per unit)
112. 13 $ 112. 13 $ 114. 37 $ 116. 66 $ 118. 99 $ 121. 37 Commercial
per ccf)
High Strength $ 24.26 $ 24.26 $ 24.75 $ 25.25 $ 25.76 $ 26.28 Med/ Domestic
Strength

8.53 $ 8.53 $ 8.70 $ 8.87 $ 9.05 $ 9.23
Low Strength $ 5.61 $ 5.61 $ 5.72 $ 5.83 $ 5.95 $ 6.07

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8 DATE: April 20, 2026

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
Nate Cruz, Finance Director
DEPARTMENT: Public Works
SUBJECT: CONFIRMING PREVIOUSLY ADOPTED WATER RATES
EFFECTIVE JULY 1, 2025, WITH ANNUAL ADJUSTMENTS
EACH JULY 1 THROUGH JULY 1, 2029

RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) review the attached study on water rates, which confirms the previously adopted water rates effective July 1, 2025, with annual adjustments each July 1 through 2029 and the implementation of the pass through increase of $0.42 cents per hundred cubic feet (ccf) for Fiscal Year 2027. This is an informational item only; no action is needed.

EXECUTIVE SUMMARY
On March 24, 2025, the EMID Board held a Budget Study Session to consider an analysis of proposed water rates for a five-year period from FY 2025-2026 to FY 2029- 2030 conducted by EMID's rate consultant, Bartle Wells Associates (BWA). Pursuant to direction received from the EMID Board at that meeting, staff prepared a public hearing notice of the proposed adoption of maximum new water rates.

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8 In conformance with Proposition 218 and AB 2257, a public hearing notice with the proposed rates was mailed to all record property owners and customers of record on March 31, 2025. The notice also included information regarding Government Code section 53756, which allows EMID to “pass through” changes to the wholesale cost to its customers. Under this provision, EMID implemented a pass-through mechanism per the formula in the study allowing adjustments to its retail water rates during the five-year period to reflect changes in rates imposed by the San Francisco Public Utilities Commission (SFPUC) that exceed the originally projected increases. A public hearing was held, and the rates were adopted on June 2, 2025.

For FY 2026-2027 the approved rate adjustment includes a 3.2% volumetric rate increase and an 8% meter charge increase, which results in an average monthly bill of about $89.96 a month for a single family home. The implementation of the pass-through amount of $0.42 cents per ccf will result in an average monthly bill of about $93.32.

According to a survey of communities conducted along the San Francisco Peninsula by BWA, EMID’s average water bill remains among the lowest in the region.

BACKGROUND/ANALYSIS
EMID provides water service to approximately 8,296 water service and fire protection service accounts/meters. Most of the District’s customers are residential.

Water bills are composed of two components: a fixed monthly charge based on meter size, plus a water consumption charge based on each customer’s metered water use.

The fixed monthly charge corresponds to the District’s fixed costs to provide water delivery to customers, based upon the size of the meter.

EMID's strategy for funding long-term capital water improvements calls for an annual transfer from water operating revenues to the City's Capital Improvement Fund to fund projects over the next 15 years. The proposed rate projections include allocations to the Capital Improvement Account to support critical infrastructure projects, including water tank lining, structural retrofitting, and an emergency bypass transmission main. In addition to annual transfers, BWA anticipates the need to secure $4 million in short term debt financing in FY 2027- 2028 to provide the necessary cash to fund these improvements. By securing financing instead of immediately raising rates, EMID can ensure that cash flow needs are met while allowing funds to be replenished over time.

Should staff determine that debt financing is recommended in FY 2027-2028, the recommendation will be presented to the EMID Board for approval.

On March 24, 2025, the EMID Board held a Budget Study Session regarding updated water rates to be effective July 1, 2025, with annual increases through July 1, 2029. At the Budget Study Session, the EMID Board considered information developed by EMID's rate consultant, BWA, and approved the Rate Setting Procedures which incorporate and implement the requirements contained in Proposition 218 and the procedures by which property owners/rate payers are required to exhaust

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8 administrative remedies as set forth in Government Code section 53759.1 and 53759.2 (AB 2257). Pursuant to that direction and in conformance with Proposition 218, staff prepared and mailed the public hearing notice with the proposed rates by March 31, 2025.

A public hearing was held on June 2, 2025, there was no majority protest to the rates, and the rates adopted were effective July 1, 2025, with annual adjustments each July 1 through 2029. Consistent with Resolution No. 3804 Section 6(c), EMID is authorized to passthrough actual wholesale water costs from SFPUC that exceed the estimated costs incorporated in the water rate calculation. As identified in the Rate Study, the approved water rates estimated wholesale water costs of $5.85 per ccf for FY 2027; however, the actual costs provided by SFPUC for FY 2027 are $6.23 per ccf. Therefore, consistent with the formula in the Rate Study, the passthrough rate for FY 2027 is ($6.23-$5.85)/0.9 = $0.42 per ccf.

The proposed rates provide adequate revenue for operations, capital expenditures and transfers, and maintain the operating fund balance at or above target levels. The rates include consideration of the operational and maintenance costs related to water system operations and capital improvement projects.

Fiscal Year 2026-2027 through 2029-2030 are included in Table B-3 from the updated BWA Rate Study. Each year of the adopted rates, EMID will calculate the passthrough rate by comparing the updated costs from SFPUC to the costs that were estimated at the time the Water Rates were approved.

The EMID Board has implemented a long-term rate smoothing model that considers long-range projections for wholesale water rates and significant capital improvements Table B-3
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Monthly Rate Impacts (Including Projected Passthrough)
Single Family Residential Monthly Rate $85.70 $89.96 $94.47 $99.18 $104.12 $108.41 $112.27 $116.31 $120.48 $124.83 Pass Through Amount 3.36 4.80 4.00 1.68 1.76 1.76 1.84 1.92 2.00 Total 93.32 99.27 103.18 105.80 110.17 114.03 118.15 122.40 126.83 $ Increase 7.62 5.95 3.91 2.62 4.37 3.86 4.12 4.25 4.43 % Increase 8.9% 6.4% 3.9% 2.5% 4.1% 3.5% 3.6% 3.6% 3.6% Based on Single Family Residential Use of 8 ccf
Projected Water Bills Fiscal Year Ending June 30 Extended Year Projection

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8 and maintains rate increases at no greater than 10% per year. The proposed rates were prepared using a 15-year model, which has proven to be successful in dampening rate spikes. EMID customers will be notified of the previously approved rate change and the pass-through adjustments at least 30 days prior to the change in rates.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080(b)(8), and California Code of Regulations Section 15273 (of the "CEQA Regulations") because it establishes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) meeting operating expenses; (2) purchasing supplies, equipment and materials; (3) meeting financial requirements; and (4) obtaining funds for capital projects necessary to maintain service within existing service areas. Additionally, it is exempt per CEQA General Rule, Section 15061 (b) (3)

FISCAL IMPACT
The adopted water rates will cover the projected system expenditures while adhering to budget policy objectives established by the 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.

VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
Innovation and Sustainability
Smart Planning, Development, and the Local Economy
ATTACHMENTS:

Attachment 1 – Bartle Wells Associates Water Rate Study Analysis Attachment 2 – EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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

DATE: April 8th, 2026

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. BWA most recently completed a formal rate study in 2025, resulting in a five-year rate schedule for FY 2026 through FY 2030. That study also established a pass-through provision authorizing the District to recover any wholesale rate increases above the levels projected in the study . Customers would be notified of any such pass-through adjustments at least 30 days prior to the change in rates . The purpose of this analysis is to update the District’s financial plan and to examine whether the five- year rate schedule and pass-through amounts are sufficient. This update confirms the previously adopted water rates effective July 1, 2025, with annual adjustments each July 1 through 2029 and the implementation of the pass through increase of $0 .42 per h undred cubic feet (ccf) for Fiscal Year 2027.

Current and projected water service rates are in the low range compared to other agencies on the Peninsula. However, the District faces ongoing infrastructure funding needs and increasing wholesale water costs.

Water Enterprise Summary
The primary driver of District rate increases is the impact of increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rates. SFPUC rate increases are driven by a variety of factors including debt service on existing and newly issued bonds, continued low water usage, repayment of the balancing account, and increased capital funding needs. Additionally, in recent years the District has increased the annual amount of projected capital expenditure transfers from the operating reserve fund to the capital reserve fund from $1 million to $2. 6 million on average.

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SFPUC, the District’s sole water supplier, has finalized its wholesale rate for FY 2027. Chart A presents a summary of the projected SFPUC rates. The current wholesale rate of $5.80 per hundred cubic feet (ccf) in FY 2026 will increase by $0.43 per ccf, or 7.4%, to $6.23 per ccf in FY 2027. By comparison, the 2025 rate study projected an FY 2027 rate of $5.85 per ccf, indicating that the rate is $0.38 per ccf higher than previously anticipated. After accounting for the District’s estimated 10% system water loss, the required pass-through adjustment for FY 2027 is $0.42 per ccf to fully recover the increase in wholesale water costs.

Future increases are unknown, however, BWA factored in 3.5% annual wholesale rate increases beyond FY 2027 in this analysis , reflecting expected inflationary pressures and ongoing system costs. SFPUC rates are projected to reach approximately $7.15 per ccf by FY 2031. Any wholesale rate increases implemented by SFPUC above the 2025 study projected levels are recommended to be passed through to District customers via Government Code section 53756.

The District will also continue to make annual payments to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the Water System Improvement Project (WSIP), which was financed through the issuance of bonds. These payments are projected to average approximately $650,000 annually. Water purchases from SFPUC remain the largest single expense within the District’s water enterprise. Table 5 summarizes projected wholesale water purchases and the associated pass-through calculation, and Appendix B provides detailed financial projections.

The WSIP is a multi-year capital initiative with a budget of $4.8 billion. Its goal is to enhance both the regional and local water systems managed by the SFPUC. The program focuses on repairing, replacing, and seismically upgrading critical parts of the Hetch Hetchy Regional Water System .

The WSIP encompasses 87 projects, including 35 local projects within San Francisco and 52 regional projects across seven counties, extending from the Sierra foothills to San Francisco. By October 2020, the San Francisco p ortion of the program had been fully completed. In March 2022, the SFPUC Commission approved updates to the program schedule, extending the completion of the timeline for remaining projects to February 2027.

Adopted wate r rates inclusive of the pass-through adjustment are designed to maintain the operating fund above target levels (90 days operating expenses in reserves) and cover District operating and capital costs. The District is projected to set aside approximately $11.1 million for capital improvements over the next 5 years. The capital improvement set aside amount is based on funding the District’s water master plan. Major projects include valve replacements, water tank lining and structural retrofitting, and an emergency bypass transmission main, among others. BWA projects the District will need to obtain roughly $4 million of debt financing to fund

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the capital improvements in FY 2028. The source of the funds is unknown currently and is estimated to be a 30-year loan at 6% interest with 1.5% transaction costs for planning purposes.

Adopted water rates inclusive of the pass-through adjustment 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 losses caused by non-infrastructure related incidents such as inaccuracies in metering, data handling errors, or unauthorized consumption (water theft).

The District separates its costs into variable costs (captured by a volumetric rate) and fixed costs (captured by a meter charge rate). To maintain the operating reserves, fund the capital set aside, and phase in volumetric rates, BWA recommends the District implement the adopted water rates inclusive of the FY 2027 pass-through adjustment, resulting in an estimated 9.4% volumetric rate increase and an 8% meter charge increase in FY 2027.

Under the a dopted water rates inclusive of the FY 2027 pass- through adjustment, the average monthly bill for a single -family residential customer is projected to increase by approximately $7.62 (8.9%).

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 shown in Appendix A.

The water survey compares a monthly water bill for 8 units (1 unit = 1 ccf) of water which would be a common residential consumption. Including the adopted increase and FY 2027 pass-through adjustment, the District’s average monthly water bill for FY 202 7 is $93.32. Since it is unknown what the comparator agencies are proposing for FY 202 7, the District compares its FY 202 6 monthly residential water bills to the FY 2026 monthly residential water bills for the neighboring agencies. The survey indicates that the District’s water rates are among the lowest on the

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Peninsula. The average monthly water bill for the region based on 8 ccf is $122.26 per month and the District’s average monthly residential water bill is $85.70 per month, or about 30% less. Since the adopted rates inclusive of the 2027 pass-through adjustment are also less than the FY 202 6 average, EMID customers will continue to pay lower than average water bills.

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 approximately 8,296 accounts/meters that allow for water service and fire protection service.

Meter ratios reflect the proportionate volume of water that may flow through the various meter sizes. The total 3/4” meter equivalents in the District amounts to 20,234 based on industry standard meter ratios established by the American Water Works Association (AWWA).

Private fire meter ratios are set at 35% of regular meter ratios due to lower usage frequency, as they are primarily for emergency use. Fire meters are often on standby and only used during fire emergencies, resulting in less operational time and reduced maintenance and inspection requirements compared to regular water meters. Fire service lines of 1 -1/2" and smaller diameters often have similar flow rates and pressure requirements, making it practical to treat them as a single category for cost and rate purposes.

The District’s service area includes Foster City and the Mariner’s Island area, as shown in Appendix C.

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The District’s minimum operating reserve target is set at 25% of annual operating expenses, equivalent to approximately $4.73 million in FY 2026 or about 90 days of operating expenditures.

This target is intended to maintain sufficient liquidity to address unexpected costs or revenue fluctuations.

As shown in Appendix B, for FY 2026, the District maintained an O&M reserve balance of $8,583,187 (approximately 163 days). This balance is projected to be drawn down to $6,829,676 (approximately 122 days) in the following year, which remains above the minimum target.

Table 1
City of Foster City / Estero Municipal Improvement District Water Meters By Size
Data as of: 03/06/26
Water Service
3/4" 6,826 1.00 6,826
1" 473 1.67 788
1-1/2" 182 4.00 728
2" 379 5.33 2021
3" 89 11.67 1038
4" 61 21.00 1281
6" 39 46.67 1820
8" or greater 19 80.00 1,520
Subtotal 8,068 16,022
Private Fire Protection Service
1-1/2" & below 11 1.40 15
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 8,296 20,234
[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 summarizes the current and adopted water rates. The District incurs variable expenditures that are driven by customer water use, and these costs are recovered through the volumetric water charge, which is $6.80 per ccf in FY 2026. The District’s meter charges recover fixed expenditures through monthly charges, which are $31.30 for a ¾-inch meter in FY 2026.

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Table 2
City of Foster City / Estero Municipal Improvement District Adopted Rates (Excludes Wholesale Passthrough)
F
iscal Year Ending (FYE) 2026 2027 2028 2029 2030
Fixed Meter Charge
Monthly Meter Charge
Meter Size
3/4" $31.30 $33.80 $36.15 $38.70 $41.40
1" 52.17 56.33 60.25 64.50 69.00
1-1/2" 125.20 135.20 144.60 154.80 165.60
2" 166.93 180.27 192.80 206.40 220.80
3" 365.17 394.33 421.75 451.50 483.00
4" 657.30 709.80 759.15 812.70 869.40
6" 1,460.67 1,577.33 1,687.00 1,806.00 1,932.00
8" or greater 2,504.00 2,704.00 2,892.00 3,096.00 3,312.00 Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf $6.80 $7.02 $7. 29 $7.56 $7.84
Tier 2 Over 20 ccf 7.56 7.79 8.08 8.34 8.59
Multi-Family Residential
Tier 1 0-10 ccf per living unit 6.80 7.02 7. 29 7.56 7.84 Tier 2 Over 10 ccf per living unit 7.54 7.77 8.06 8.32 8.57 Irrigation Customers
Tier 1 <=100% of annual budget 6.80 7.02 7. 29 7.56 7.84 Tier 2 >100% of annual budget 7.76 8.00 8.29 8.55 8.79 Commercial and Fire Line
All usage 6.92 7.14 7. 41 7.68 7.96
Monthly Private Fire Protection Charge
Meter Size
1-1/2" & below $43.82 $47.32 $50.61 $54.18 $57.96
2" 58.53 63.21 67.60 72.37 77.42
3" 127.70 137.90 147.49 157.90 168.91
4" 230.06 248.43 265.70 284.45 304.29
6" 511.13 551.95 590.33 631.97 676.06
8" or greater 876.40 946.40 1,012.20 1,083.60 1,159.20

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Table 3 summarizes the District’s projected operating expenses for the water enterprise. Total O&M expenditures ae projected to increase from approximately $19.4 million in FY 2026 to $20.6 million in FY 2027. The increase is primarily driven by rising wholesale water costs and ongoing system maintenance needs.

Table 3
City of Foster City / Estero Municipal Improvement District Water Enterprise O&M Projection
Revised
Budget
FY2026 FY2027 FY2028 FY2029 FY2030 FY2031
Employee Services $3,343,722 $3,495,140 $3,634,946 $3,780,343 $3,931,557 $4,088,819 4.0% Additional Cost [2] - - 313,542 324,103 335,045 348,447 varies Internal Services - Others 1,447,560 1,213,559 1,243,898 1,274,995 1,306,870 1,339,542 2.5% Internal Services - Equipment 396,971 396,971 406,895 417,068 427,494 438,182 2.5% Services & Supplies 804,062 980,562 1,005,076 1,030,203 1,055,958 1,082,357 2.5% SFPUC Water Purchases 11,141,880 12,011,873 12,477,954 12,962,120 13,465,074 13,987,544 varies BAWSCA Bond Repayment 670,356 646,980 646,980 646,980 646,980 646,980 Reallocation [3] 1,363,200 1,653,666 1,695,008 1,737,383 1,780,817 1,825,338 2.5% Water Sustainability 250,000 250,000 250,000 250,000 250,000 250,000 Capital Outlay/Vehicles - - - - - -
TOTAL O&M Expenditures 19,417,751 20,648,751 21,674,298 22,423,195 23,199,796 24,007,209

6.3% 5.0% 3.5% 3.5% 3.5%
[1] Based on City/District Staff direction
[2] A placeholder for potential additional positions to support the water enterprise Five Year ProjectionExpenditures Annual %
Increase [1]
[ ] p p p y y p
as documented in the City’s cost allocation study.

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District Water Usage
Table 4 shows the District’s historical water use trends from prior years and projected usage for FY 2026. District 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.

Table 4
City of Foster City / Estero Municipal Improvement District Water Consumption by Class
Water Consumption
Bi-Monthly
Customer Category Breakpoints (CCF) CCF Percent CCF Percent CCF Percent CCF Percent

RESIDENTIAL
Single Family Residential
Tier 1 Usage
0 to 20 331,014 85% 331,395 84% 335,788 83% 335,788 83% Tier 2 Usage 21 and over 59,618 15% 61,126 16% 68,938 17% 68,938 17% Subtotal 390,632 100% 392,521 100% 404,726 100% 404,726 100% Multi-Family Residential
Tier 1 Usage 0 to 10 500,442 84% 516,443 84% 512,942 82% 512,942 82% Tier 2 Usage 11 and over 95,037 16% 100,082 16% 114,057 18% 114,057 18% Subtotal 595,479 100% 616,525 100% 626,999 100% 626,999 100%

NON-RESIDENTIAL
Commercial All usage 201,310 228,762 232,760 232,760
Fire Line All usage 3,646 3,039 12,570 12,570
Irrigation
Tier 1 <=100% of budget 345,633 94% 369,418 88% 423,531 96% 423,531 96% Tier 2 >100% of budget 21,285 6% 52,147 12% 15,694 4% 15,694 4% 366,918 100% 421,565 100% 439,225 100% 439,225 100%
Total Consumption 1,716,280 1,716,2801,662,4121,557,985 FY 2023 FY 2024 Projected FY 2026FY 2025

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SFPUC Wholesale Rate Passthrough
SFPUC establishes the wholesale water rate for each unit of water purchased by the District, which supplies 100% of the District’s water. If SFPUC increases the wholesale rate, the District is authorized to pass through the increase to customers in accordance with Government Code section 53756.

The pass-through amount is calculated as the difference between the actual SFPUC rate and the rate projected in the study, adjusted for system water losses. Specifically, the formula is:

Additional SFPUC cost per ccf above study projections ÷ 0.9

The 0.9 factor reflects the District’s estimated 10% water loss, meaning approximately 90% of purchased water is billed to customers. The District will provide at least 30 days’ notice prior to implementing any pass-through adjustment and will not convene an additional public hearing for such changes.

For example, if the SFPUC rate in FY 2027 is $6.23 per ccf, compared to the projected rate of $5.85 per ccf, the pass-through is calculated as follows:

($6.23 − $5.85) ÷ 0.9 = $0.42 per ccf

This results in an additional $0.42 per ccf applied to all volumetric water rates.

The adjustment for water loss ensures that the District recovers the full cost of purchased water.

Because approximately 90% of purchased water is billed to customers, the cost increase must be recovered over that reduced sales volume. As a result, each unit sold must recover slightly more than the direct increase in wholesale cost, which is reflected by dividing the increase by 0.9.

Table 5 summarizes both projected wholesale water purchases and the calculation of the FY 2027 pass-through adjustment. The table presents the SFPUC wholesale rate projected in the 2025 study, the FY 2027 rate, and the resulting difference in cost per ccf. This difference is then adjusted for the District’s estimated 10% system water loss by dividing by 0.9, reflecting that approximately 90% of purchased water is billed to customers.

Table 5 also presents projected wholesale water costs in future years for financial planning purposes. Any future pass-through adjustment would depend on the difference between SFPUC’s adopted rates and the levels assumed in the study.

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Table 5
City of Foster City / Estero Municipal Improvement District Wholesale Water Cost Projection
W a te r Loss % 10.0%
Year ending June 30 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Annual growth rate 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Water purchases (ccf) 1,906,978 1,914,034 1,921,116 1,928,224 1,935,358 1,942,519 1,949,706 1,956,920 1,964,161 1,971,428 Water sales (ccf) 1,716,280 1,722,630 1,729,004 1,735,401 1,741,822 1,748,267 1,754,736 1,761,228 1,767,745 1,774,285 SFPUC Wholesale Water Cost Projections
SFPUC charges for base fiscal year ending June 30:

Year ending June 30: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 SFPUC fixed charge $81,409 $87,444 $90,505 $93,672 $96,951 $100,344 $103,856 $107,491 $111,253 $115,147 SFPUC rate/ccf increase 2.3% 7.4% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Projected rate per ccf 5.80 6.23 6.45 6.67 6.91 7.15 7.40 7.66 7.93 8.20 BAWSCA Cost Projection 670,356 646,980 646,980 646,980 646,980 646,980 646,980 646,980 646,980 646,980 SFPUC cost projection 11,141,880 12,011,873 12,477,954 12,962,120 13,465,074 13,987,544 14,530,290 15,094,096 15,679,780 16,288,192 Previous Study Projected SFPUC Rates $/ccf 5.79 5.85 5.91 6.22 6.72 6.96 7.20 7.45 7.71 7.98 Estimated Passthrough $/ccf (Rate Differential/0.9) 0.42 0.60 0.50 0.21 0.22 0.22 0.23 0.24 0.25 Passthrough Additional Annual Revenue 723,505 1,037,402 867,701 365,783 384,619 386,042 405,082 424,259 443,571 Projected

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Chart A, below, graphically shows SFPUC’s current estimates of future wholesale water purchase rates through FY 2031. The SFPUC rates are currently projected to increase from $6.23/ccf in FY 2027 to $6.91/ccf in FY 2030. This compares to the SFPUC rates estimated at the time the water rates were approved in 2025 when the rates were projected to increase from $5.85/ccf in FY 2027 to $6. 72/ccf in FY 20 30. Each year, EMID will calculate the passthrough rate by comparing the updated costs from SFPUC to the costs that were estimated at the time the water rates were approved.

CHART A

2.93 2.45

2.93 3.75

4.10 4.10 4.10 4.10 4.10 4.10

4.75 5.21

5.67 5.80

6.23 6.45 6.67 6.91 7.15
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
FY2028
FY2029
FY2030
FY2031
SFPUC Wholesale Water Rates ($ per ccf)
SFPUC Historical Rates
Rates Effective July 1
SFPUC Projected Rates
SFPUC wholesale rate projections as of April 2026. BWA estimates 3.5% increases beyond FY 2028.

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APPENDIX A

19.62 31.30

33.80 30.60

33.53 27.63

42.02 46.19

30.45 30.09

36.91 80.59

32.10 41.43

92.68 54.45

54.40 59.52

65.18 69.04

78.08 65.71

73.44 92.35

95.13 91.54

60.72 115.28
132.24

88.90 $74.07
$85.70
$93.32 $95.78
$102.57 $105.71 $107.72
$119.63 $122.80 $125.22 $128.45
$141.31
$147.38
$173.67
$181.58
$0
$25
$50
$75
$100
$125
$150
$175
$200
Fixed Monthly Charges
Water Usage Charges
Typical Single Family Residential Monthly Water Charges Base meter size with 8 hcf of monthly water use
Typical Single Family Residential Monthly Water Charges Base meter size with 8 hcf of monthly water use
Typical Single Family Residential Monthly Water Charges Base meter size with 8 hcf of monthly water use
Average: $122.26

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APPENDIX B

Table B-1
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Wholesale Passthrough Fiscal Year Ending June 30 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Assumptions:

Interest Earnings Rate 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 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 $31.30 $33.80 $36.15 $38.70 $41.40 $43.05 $44.75 $46.55 $48.40 $50.35 Fixed Rate Adjustment 8.5% 8.0% 7.0% 7.1% 7.0% 4.0% 3.9% 4.0% 4.0% 4.0% SFR Adopted Variable Charge $6.80 $7.02 $7.29 $7.56 $7.84 $8.17 $8.44 $8.72 $9.01 $9.31 SFR Est. Variable Passthrough Rate $0.42 $0.60 $0.50 $0.21 $0.22 $0.22 $0.23 $0.24 $0.25 Total Variable Charge $7.44 $7.89 $8.06 $8.05 $8.39 $8.66 $8.95 $9.25 $9.56 Variable Rate Adjustment 3.0% 9.4% 6.0% 2.2% -0.1% 4.2% 3.2% 3.3% 3.4% 3.4% Monthly Service Charge Single Family (8 ccf) $85.70 $93.32 $99.27 $103.18 $105.80 $110.17 $114.03 $118.15 $122.40 $126.83 Rate Adjustment 5.0% 8.9% 6.4% 3.9% 2.5% 4.1% 3.5% 3.6% 3.6% 3.6% Beginning Fund Balance $10,823,595 $8,583,200 $6,829,700 $9,286,700 $7,924,300 $7,273,600 $7,188,400 $7,253,700 $7,505,200 $7,957,700 Revenues
Water Sales & Service Charges
Meter Charge Revenue Estimate 7,600,338 8,237,735 8,843,089 9,501,905 10,202,435 10,648,307 11,109,752 11,599,384 12,104,993 12,639,287 Volumetric Revenue Estimate 11,852,005 12,276,988 12,793,247 13,307,131 13,837,869 14,466,000 14,993,000 15,537,000 16,107,000 16,699,000 Estimated Passthrough Revenue 723,505 1,037,402 867,701 365,783 384,619 386,042 405,082 424,259 443,571 Debt Issuance / Interfund Loan 0 0 4,000,000 0 0 0 0 0 0 0 Connection Fees [1] 0 0 0 0 0 0 0 0 0 0
Interest Earnings - Operating Reserve [2] 325,000 257,000 205,000 279,000 238,000 218,000 216,000 218,000 225,000 239,000 Other 0 0 0 0 0 0 0 0 0 0
Operating Revenues 19,777,343 21,495,227 26,878,739 23,955,737 24,644,087 25,716,926 26,704,794 27,759,467 28,861,252 30,020,858 Expenses
Employee Services 3,343,722 3,495,140 3,634,946 3,780,343 3,931,557 4,088,819 4,252,372 4,422,467 4,599,366 4,783,340 Additional Cost 0 0 313,542 324,103 335,045 348,447 362,384 376,880 391,955 407,633 Internal Services - Others 1,447,560 1,213,559 1,243,898 1,274,995 1,306,870 1,339,542 1,373,031 1,407,356 1,442,540 1,478,604 Internal Services - ERF 396,971 396,971 406,895 417,068 427,494 438,182 449,136 460,365 471,874 483,671 Services & Supplies 804,062 980,562 1,005,076 1,030,203 1,055,958 1,082,357 1,109,416 1,137,151 1,165,580 1,194,720 SFPUC Water Purchases 11,141,880 12,011,873 12,477,954 12,962,120 13,465,074 13,987,544 14,530,290 15,094,096 15,679,780 16,288,192 BAWSCA Bond Repayment 670,356 646,980 646,980 646,980 646,980 646,980 646,980 646,980 646,980 646,980 Reallocation 1,363,200 1,653,666 1,695,008 1,737,383 1,780,817 1,825,338 1,870,971 1,917,746 1,965,689 2,014,831 Capital Outlay / Vehicles 0 0 0 0 0 0 0 0 0 0
Operating Expenses 19,167,751 20,398,751 21,424,298 22,173,195 22,949,796 23,757,209 24,594,580 25,463,040 26,363,764 27,297,971 Operating Net Revenues 609,592 1,096,476 5,454,441 1,782,541 1,694,291 1,959,717 2,110,214 2,296,426 2,497,487 2,722,887 Water Sustainability Fund Transfer 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 Capital Improvement Transfer [3] 2,600,000 2,600,000 2,600,000 2,600,000 1,800,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Proj. Debt Service (6%, 1.5% issuance, 30yr) 0 0 147,477 294,955 294,955 294,955 294,955 294,955 294,955 294,955 Total Expenses 22,017,751 23,248,751 24,421,775 25,318,150 25,294,750 25,802,164 26,639,535 27,507,995 28,408,719 29,342,926 Revenues Less O&M Expenses 609,592 1,096,476 5,454,441 1,782,541 1,694,291 1,959,717 2,110,214 2,296,426 2,497,487 2,722,887 Revenues Less Total Expenses (2,240,408) (1,753,524) 2,456,964 (1,362,413) (650,664) (85,238) 65,259 251,472 452,533 677,933 Ending Fund Balance 8,583,187 6,829,676 9,286,664 7,924,287 7,273,636 7,188,362 7,253,659 7,505,172 7,957,733 8,635,633 Revenue Test: Annual Revenues > O&M Expenses
Annual Revenues Less O&M Expenses 609,592 1,096,476 5,454,441 1,782,541 1,694,291 1,959,717 2,110,214 2,296,426 2,497,487 2,722,887 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: Minimum Fund Balance >
25% O&M Expenses
Year-end fund balance 8,583,187 6,829,676 9,286,664 7,924,287 7,273,636 7,188,362 7,253,659 7,505,172 7,957,733 8,635,633 25% operating expenses 4,730,000 5,030,000 5,280,000 5,470,000 5,660,000 5,860,000 6,060,000 6,280,000 6,500,000 6,730,000 # of Days O&M in Reserves 163 122 158 130 116 110 108 108 110 115 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Debt Service Coverage 9.86 6.04 5.74 6.64 7.15 7.79 8.47 9.23 [1] Connection fees not included in this analysis
[2] Calculated as 3% 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 B-2
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts (Including Projected Passthrough) Current FY2027
Rates Two Tier Hybrid Model
Monthly meter charge $31.30 $33.80
% Change 8.0%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf $6.80 $7.44
Tier 2: over 20 ccf $7.56 $8.21
Water Monthly
Use Level Use (ccf) Monthly Bill
Low User 5 $65.30 $71.00
$ Increase 5.70
% Increase 8.7%
Median User 6 $72.10 $78.44
$ Increase 6.34
% Increase 8.8%
Average User 8 $85.70 $93.32
$ Increase 7.62
% Increase 8.9%
High User 10 $99.30 $108.20
$ Increase 8.90
% Increase 9.0%
Very High User 20 $167.30 $190.30
$ Increase 23.00
% Increase 13.7%
Excessive User 50 $394.10 $436.60
$ Increase 42.50
% Increase 10.8%
Table B-3
Foster City / Estero Municipal Improvement District
P
rojected Water Rate Impacts
Current
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Monthly Rate Impacts (Including Projected Passthrough)
Single Family Residential Monthly Rate $85.70 $89.96 $94.47 $99.18 $104.12 $108.41 $112.27 $116.31 $120.48 $124.83 Pass Through Amount 3.36 4.80 4.00 1.68 1.76 1.76 1.84 1.92 2.00 Total 93.32 99.27 103.18 105.80 110.17 114.03 118.15 122.40 126.83 $ Increase 7.62 5.95 3.91 2.62 4.37 3.86 4.12 4.25 4.43 % Increase 8.9% 6.4% 3.9% 2.5% 4.1% 3.5% 3.6% 3.6% 3.6% Based on Single Family Residential Use of 8 ccf
Projected Water Bills Fiscal Year Ending June 30 Extended Year Projection

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APPENDIX C

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RESOLUTION NO. 3804

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT ESTABLISHING UPDATED WATER RATES EFFECTIVE JULY 1, 2025, WITH ANNUAL ADJUSTMENTS EACH JULY 1 THROUGH JULY 1, 2029

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, the Estero Municipal Improvement District (“ District”) provides water service to property owners ( who may also be referred to as “owners”) within the District’s service area ( as identified on the final page of the Water Rate Study, attached as Exhibit A”), and establishes the amount of water service charges to be charged customers in accordance with Estero Municipal Improvement District Code (“ District Code”) Chapter

8.48 and applicable law; and
WHEREAS, the District is authorized to establish fees, rates, and charges for the water services provided to each property owner in accordance with District Code Chapter

8.48, and “ Proposition 218” ( California Constitution Article XIII D, Section 6; as it is implemented by the Legislature at Government Code sections 53750 – 53759. 2; and as it has been interpreted by judicial decisions); and California Health and Safety Code Section 5471. The District refers to those fees, rates, and charges as water charges or water rates ( as used herein, the phrases “ water charges” and “water rates” may be used interchangeably); and
WHEREAS, the District has previously established water rates under District Code Chapter 8.48, pursuant to Resolution No. 3762, adopted by the District Board on June 3, 2024, The purpose of water rates is to ensure that adequate funding is provided to protect the public health, safety and general welfare through the provision of a reliable and adequate water system that meets current and anticipated demands to serve the owners and customers of the District; and
WHEREAS, the District undertook an analysis of previously established water rates, as documented in the memorandum from the District’s consultant, Bartle Wells Associates (“ BWA”), dated March 19, 2025 and titled “Water Rate Study Update Results” Water Rate Study”), and determined that proposed changes to the water rates are warranted ( to be effective July 1, 2025, with annual adjustments each July 1 through July 1, 2030) in order to offset the District’s ongoing costs of providing water services to owners and customers, including the costs of providing proper maintenance and replacement of existing utility infrastructure, and providing adequate reserves for emergency. The Water Rate Study is attached hereto as Exhibit “ A,” and it has been posted on the “ District’s Webpage” ( www. fostercity. org/ publicworks/ page/ water- and- wastewater- rates) since March 31, 2025; and
WHEREAS, at its Budget Study Session held on March 25, 2024, the District Board a) reviewed the Water Rate Study and detailed analyses of the District’s utility system Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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EMID Resolution No. 3804
operations, revenues, expenses and long- term capital improvement program; ( b) directed staff to schedule a public hearing to consider recommended updates to water rates; and c) approved the “EMID Rate Setting Procedures” ( attached hereto as Exhibit “ B”) to document the process by which the District will conduct the public hearing in accordance with the requirements of Proposition 218 as well as implementing administrative remedies for owners to submit written objections to the water rates ( in accordance with “AB 2257” codified at Government Code Sections 53759. 1 and 53759. 2); and WHEREAS, on March 31, 2025, the District mailed the notice of public hearing ( to be held on June 2, 2025) to all property owners receiving water service from the District, and posted the notice and the EMID Rate Setting Procedures on the District’s Webpage.

The public hearing notice is attached hereto as Exhibit “ C,” and it was mailed in accordance with Proposition 218, posted in accordance with AB 2257, and published in accordance with Government Code Sections 6062a, 54354. 5, and 66016 ; and WHEREAS, consistent with the notices of public hearing, the public hearing was held on June 2, 2025, the District Board provided an opportunity for every interested person to comment on the proposed water rates, the Board was prepared to consider any timely written protests from property owners and written responses from District staff ( per AB 2257) however no written objections were filed, and the Board proceeded to conduct the public hearing to consider timely written protests submitted prior to the close of public hearing; and
WHEREAS, the District Board finds and determines, 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, that it is warranted and necessary to establish the revised water rates as set forth in this Resolution.

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 this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080( b)(8), and California Code of Regulations Section 15273 of the “CEQA Regulations”) because it establishes, modifies, structures, or restructures, and approves rates and charges for the purposes of: (1) me eting operating expenses; ( 2) purchasing supplies, equipment and materials; ( 3) meeting financial requirements; and ( 4) obtaining funds for capital projects necessary to maintain service within existing service areas.

3. The procedures followed and the water rates referenced herein are in compliance with the California Constitution Article XIII D, California Government Code sections 53755 and 53759. 1, and Health and Safety Code Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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EMID Resolution No. 3804
section 5471.

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.

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

5. The District Board hereby approves and adopts the water rates set forth on Exhibit “ D,” to be incorporated into the Master Fees and Service Charges Schedule. The water rates approved by this Resolution shall be implemented in accordance with Resolution Section 6. The water rates are approved based on the following findings and determinations by the District Board:
a. Although the District received no timely written objections, the Rate Study and all evidence identified in this Resolution document the bases on which these water rates are approved, and there is no need to reduce, alter, or clarify the proposed water rates.
b. At the close of the public hearing on June 2, 2025, the District Board considered all timely written protests and determined that, from the total number of 10,736 parcels served by District water service, the owners of a majority of those parcels did not submit a written protest. Therefore, the Board overruled all written protests against the proposed water rates, and the District may approve the water rates in accordance with California Constitution Article XIII D, Section 6(a)(2). c. The Water Rate Study and all evidence identified in this Resolution document that the water rates comply with the substantive requirements of Proposition 218, as set forth at California Constitution Article XIII D, Section 6(b):
i. The revenues derived from the rates do not exceed the cost of providing water service to property owners or customers served by the District’s water service.
ii. The revenues derived from rates are not, and shall not be, used for any other purpose other than meeting the costs of providing water service.
iii. The amount of the rate imposed upon any parcel doe s not exceed the proportional cost of the water service provided to that parcel. iv. The revenues derived from rates are used for water services actually used by, or immediately available to, the person or owner of the property responsible for the payment of the rate. v. No rate is imposed for general governmental services, such as police or fire, that is available to the public at large.

6. The water rates set forth on “Exhibit D” shall be effective July 1, 2025, for the rates identified in each column labeled “ Proposed FY 25- 26” for each row of rates as applicable to the relevant property owner or customer. Thereafter:
a. The water rates shall be automatically updated on an annual basis each Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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EMID Resolution No. 3804
July 1 for the years 2026, 2027, 2028, and 2029, in accordance with the schedule set forth on Exhibit “D” for the corresponding columns for each year labeled “Proposed FY 26- 27,” “Proposed FY 27-28,” “Proposed FY 28-29; and “Proposed FY 29- 30.”
b. Provided, however, for any annual update to water rates under this Resolution Section 6, the District shall provide notice of the update at least 30 days before the effective date, in accordance with Government Code Section 53756( d).
c. Provided further that, for any notice of an annual update to water rates:
1) the District Board may incorporate passthrough SFPUC Wholesale Rates, in accordance with the formula set forth in the Water Rate Study; 2) the District Board may set the rates by resolution in an amount that is equal to or less than the amounts authorized by this Resolution Section 6; and ( 3) the District Board may delay the effective date of an annual increase as long as the amount of the increase does not exceed the authorized by this Resolution Section 6.
d. The rates in effect on July 1, 2029, shall remain in effect each July 1, thereafter.
e. The water rates shall not be set in an amount that exceeds those set forth in this Resolution Section 6 unless the District Board first conducts a noticed public hearing in accordance with the requirements of law including Proposition 218.

PASSED AND ADOPTED as a resolution of the District Board of the Estero Municipal Improvement District at the regular meeting held on the 2nd day of June, 2025, by the following vote:

AYES: Directors Kiesel, Niederhofer, Sullivan, Venkat, and President Jimenez NOES: None
ABSENT: None
ABSTAIN: None

STACY JIMENEZ, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY
Docusign Envelope ID: 1B0B4548- 503A- 4AD7- B763- 541D3FA64B3B

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

TO:

FROM:

SUBJECT:

March19th, 2025
Cityof FosterCity/EsteroMunicipalImprovementDistrict
BartleWellsAssociates
WaterRateStudyUpdateResults

SUMMARYOFFINDINGSANDRECOMMENDATIONS
Introduction andBackground
The EsteroMunicipal ImprovementDistrict (District) engagedBartle Wells Associates BWA) to develop10-yearfinancialprojectionsfor the District’sWaterEnterpriseandto projectwater rate adjustmentsfor the nextfive-yearperiod. BWAlastconductedformal rate studiesin 2024, which resultedin a one-year rate approvalfor water rates for FY 2025.

Current and projected water servicerates are in the low range comparedto other agencies on the Peninsula, however, the District water enterprises face unique infrastructurefundingchallenges.

Water EnterpriseSummary
Theprimarydriverfor the proposedrateincreasesisto smoothDistrictrateincreasesdue to projectedincreasesin the SanFranciscoPublicUtilitiesCommission (SFPUC) wholesale water rate. The rate increaseis due to a variety of factors includingdebt serviceon existing and newly issuedbonds, continued low water usage, and repaymentof the balancingaccount. Additionally, theDistricthasincreasedthe annualamountof projected capitalexpendituretransfersfrom the operatingreservefund to the capitalreservefund from $1 million to $2.4 million on average.

SFPUC, the solesourceof water supplyfor the District, releasedupdatedprojectionsfor their wholesalerate for the next 5 years (FY2026to FY2030). SFPUCis projectingthe current rate of $5.67 in FY2025per hundredcubicfeet (ccf) will increase2.1% to $5.79 in FY2026, 1% to $5.85in FY2027, 1% to $5.91in FY2028, 5.2% to $6.22in FY2029, and 8% to $6.72 in FY2030. Any increasesimplementedby SFPUCabovethesevaluesare

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recommendedto be passedthroughto DistrictcustomersviaGovernmentCodesection 53756, asexplainedon page11.

BWAprojectsthe SFPUCrate will increase3.5% annuallybeyondFY2030basedon the averageincreaseprojectedby SFPUC. 3.5% alsocorrespondswell to BWA’s estimateof future costinflation in the economy.

SFPUCrateswere historicallyheld level at $4.10/ccf for six years (FY2017to FY2022) despiteescalatingSFPUCdebt serviceand operatingcoststhrough use of a balancing account. Thebalancingaccountwasbuilt upfrom SFPUCwholesalewatersalesexceeding projections used in rate setting. In FY2023, the wholesalerate increased15.9% to

4.75/ccf, 9.7% to $5.21in FY2024, and8.8% to $5.67in FY2025.

Duringthe time that SFPUCwholesalerateswereheldflat by the balancingaccount, the District has been graduallyincreasingits volumetric rates in anticipation of projected wholesalerate increasesby SFPUC. While the wholesalerate increaseshave come to fruition, the District’s rates havebeenphasedto ensuresufficient revenuesand avoid sharpincreasesbasedon a rate smoothingmodel.

The District will also continue to make annual payments, projected to be $675,000 annually, to the BayAreaWaterSupplyandConservationAgency (BAWSCA) for the Water SystemImprovementProject (WSIP) that wasfundedthroughthe issuanceof bonds. The water enterprise’ssinglelargestcostiswater purchasesfrom SFPUC.

WSIPis a multi-yearcapitalinitiative with a budgetof $4.8 billion. Its goalis to enhance both the regionalandlocalwater systemsmanagedby the SFPUC. Theprogramfocuses on repairing, replacing, and seismicallyupgradingcritical parts of the Hetch Hetchy RegionalWaterSystem. WSIPencompasses87projects, including35localprojectswithin SanFranciscoand52 regionalprojectsacrosssevencounties, extendingfrom the Sierra foothillsto SanFrancisco. ByOctober2020, the SanFranciscoportion of the programhad beenfully completed. In March 2022, the SFPUCCommissionapprovedupdatesto the program, includinga scheduleextensionto February2027.

BWAproposedwater rates are designedto maintain the operatingfund abovetarget levels (90 daysoperatingexpensesin reserves) and coverDistrict operatingand capital costs. The District is projected to set aside approximately $12 million for capital improvementsoverthe next5 years. Thecapitalimprovementsetasideamountisbased on fundingthe District’s water masterplan. Major projectsincludevalvereplacements,

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watertankliningandstructuralretrofitting, andanemergencybypasstransmissionmain, amongothers. BWAprojectsthe Districtwill needto obtain $4 million of debt financing to fund the capital improvementsin FY2028. The source of the funds is unknown currentlyandisestimatedto bea 30-yearloanat 6% interestwith 1.5% transactioncosts for planningpurposes.

Proposedwater rates are basedon 10% water loss. That is, 90% of the water EMID purchasesare soldto retail customers. Thelosseshavedecreasedover time due to the District’sefforts to replaceagingmeters. Waterlossrefersto the differencebetweenthe amount of water put into the distribution systemand the amount of water billed to customers. Thislosscanbe categorizedinto two maintypes:

RealLosses: Theseare physicallossesof water from the systemdue to leaks, overflows, or breaksin the water mains, servicelines, and other infrastructure.

Reallossescan be causedby aginginfrastructure, corrosion, damage, or faulty installation.

ApparentLosses: Thesearelossescausedby non-infrastructurerelatedincidents such as inaccuraciesin metering, data handling errors, or unauthorized consumption (water theft).

TheDistrictseparatesitscostsinto variablecosts (capturedbyavolumetricrate) andfixed costs (capturedby a meter chargerate). (see page18 and Table6.) To maintain the operating reserves, fund the capital set aside, and phase in volumetric rates, BWA recommendsthe District implement a 3% volumetric rate increaseand a 8.5% meter chargeincreasein FY2026. Theaveragebill for a singlefamily homewould increaseby 5% or $4.05per month.

Detailedwater rate calculationsareshownin APPENDIXC.

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RateSurvey
A surveyof communitiesalongthe SanFranciscoPeninsulawasconductedto compare the District’s typical residentialmonthly water bills with neighboringcommunities. The resultsof the water surveyaresummarizedin APPENDIXB.

Thewater surveycomparesa monthlywater bill for 8 units (1 unit = 1 ccf) of water whichwouldbe a commonresidentialconsumption. Includingthe recommended increase, the District’saveragemonthlywater bill proposedfor FY2026is $85.70. Since it isunknownwhat the comparatoragenciesareproposingfor FY2026, the District comparesits FY2025monthlyresidentialwater billsto the FY2025monthlyresidential water billsfor the neighboringagencies. Thesurveyindicatesthat the District’swater ratesareamongthe loweston the Peninsula. Theaveragemonthlywater bill for the regionbasedon 8 ccfis $116.09per month andthe District’saveragemonthly residentialwater bill is $81.65per month, or about30% less. Sincethe proposed increaseisalsolessthanthe FY2025average, it islikelythat EMIDcustomerswill continueto paylower than averagewater bills.

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Water EnterpriseFund
TheDistrict currently provideswater serviceto a population of approximately36,500.

Most of the District’s customersare residential. Table1 shows approximately8,295 accounts/metersthat allowfor water serviceandfire protectionservice.

Meter ratiosreflectthe proportionatevolumeof waterthat mayflow throughthe various meter sizes. Thetotal 3/4” meter equivalentsin the Districtamountsto 20,229basedon industry standardmeter ratios establishedby the AmericanWater WorksAssociation AWWA).

Private fire meter ratios are set at 35% of regular meter ratios due to lower usage frequency, astheyareprimarilyfor emergencyuse. Firemetersareoften on standbyand only used during fire emergencies, resulting in less operational time and reduced maintenanceand inspection requirements compared to regular water meters. Fire servicelinesof 1-1/2" andsmallerdiametersoften havesimilarflow ratesand pressure requirements, makingit practicalto treat them as a singlecategoryfor cost and rate purposes.

ThewaterenterpriseserviceareaincludesFosterCityandtheMariner’sIslandareashownin APPENDIXD.

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Table 2 illustrates the current reservesthat the District can draw down in caseof emergencyor to smoothany “rate shocks” to its customers.

TheDistrict is meeting its 90-day operatingfund reservetarget (estimatedto be $4.4 million.) Thetargetisbasedonthe District’slongstandingreservepolicyandisanindustry Table 1
City of Foster City / Estero Municipal ImprovementDistrict Water Meters By Size
Data as of: 01/22/25
Water Service
3/4" 6,832 1.00 6,832
1" 466 1.67 777
1-1/2" 182 4.00 728
2" 379 5.33 2,021
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 8,067 16,017
Private Fire Protection Service
1-1/2" & below 11 1.40 15
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 8,295 20,229
Source: Foster City/Estero Municipal ImprovementDistrict 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.

MeterSize Accounts MeterRatio1,2 Est. MeterEquivalents3 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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standard minimum target to maintain adequate short term liquidity in case of emergencies.

Thewholesalewaterpurchaseratesthat SFPUCandBWAareprojectingthroughFY2030 are shown graphicallyin CHARTA. The SFPUCrates are projected to increasefrom

5.67/ccfin FY2025to $6.72/ccfin FY2030.

Table2
City of Foster City / Estero Municipal ImprovementDistrict Water Enterprise OperatingReserves
July1, 2024
FundReserveComponent ReserveBalance
Reservedfor Maintenance & Operation (401)$ 11,194,614
Total $ 11,194,614
operatingexpenditures.

Note: Rate model only includes fund reservecomponents availableto fund ongoing Source: City of Foster City/Estero Municipal ImprovementDistrict Staff

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CHARTA

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Table3summarizestheDistrict’sprojectedoperatingcostswhichareanticipatedto increase overthenextfiveyearsbetween2.1% and6.6% annually.

Table3
Cityof FosterCity / EsteroMunicipalImprovementDistrict
WaterEnterpriseO&MProjection
Revised
Budget
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
EmployeeServices 2,956,001 3,387,751 3,523,261 3,664,191 3,810,759 3,963,190 4.0% AdditionalCost [2]- 31,339 303,873 313,542 324,103 335,045 varies Internal Services - Others 1,244,701 1,449,956 1,486,205 1,523,360 1,561,444 1,600,480 2.5% InternalServices - Equipment
ReplacementFund 456,767 396,971 406,895 417,068 427,494 438,182

2.5%
Services & Supplies 817,062 979,062 1,003,539 1,028,627 1,054,343 1,080,701 2.5% SFPUCWater Purchases 10,467,000 10,814,000 10,966,000 11,119,000 11,742,000 12,727,000 varies BAWSCABondRepayment 601,416 670,356 675,000 675,000 675,000 675,000 Reallocation [3] 1,362,521 1,373,045 1,407,371 1,442,555 1,478,619 1,515,585 2.5% WaterSustainability 250,000 250,000 200,000 200,000 200,000 200,000 TOTALO&MExpenditures 18,155,468 19,352,480 19,972,144 20,383,343 21,273,763 22,535,182

6.6% 3.2% 2.1% 4.4% 5.9%
1] Basedon City/District Staffdirection
2] A placeholder for potential additional positions to support the water enterprise FiveYearProjection Annual %
Increase [1]Expenditures
3] Costs allocatedto the waterenterpriseforthe cost of servicesprovidedto the enterpriseby City departments, as documented in the City’s cost allocation study.

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Table4summarizesthecurrentwaterrates. TheDistricthasvariableexpenditureswhichare expendituresthat areimpactedbytheamountof wateritscustomersconsume. Thesecosts mustbe recoupedviaits volumetricwater charge, $6.60 per ccfin FY2025. Likewise, the District’smeterchargesrecoverfixedexpenditures, expendituresthat arefixedregardlessof amountof waterthat isconsumed, $28.85for a ¾” meterin FY2025.

District TieredRatesCostBasis
TheDistricthasatwo-tieredmodelfor itsresidentialcustomerswherehigherlevelsof water consumptionare subject to higher water rates based on a proportionate share of conservationprogramcosts. Commercialcustomersare chargeda uniform rate, which includescommercialcustomers’ proportionateshareof conservationprogramcosts.

Waterconservationprogramsfor Districtcustomersaimto reducewaterusein the District servicearea and help water userssavewater and money. Conservationefforts include rebates, suchasconversionof livinggrasslawnto morewater-wiseoptions, rainbarrelsto collect rainwater, smart irrigation controllersto minimizeexcesswater use; education, includingfreelandscapingandgardeningclassesandeducationalprogramsfor studentsin localschoolsandthe FosterCityLibrary; self-auditkitsfor indoorwateruseandlandscape auditsfor outdoorwateruse, andmore.

Conservationprogramcostsof $200,000peryearareallocatedto eachcustomerclassbased ontheproportionateimpactofeachcustomerclassontheneedfortheprogramanditscosts.

Residentialand irrigationcustomerspay conservationcostson Tier 2 usageonly, while commercialcustomerspaytheirshareof conservationcostsoneachunit of waterusage.

Forits irrigationcustomers, the Districthasworkedwith JohnWhitcombof Waterfluenceto assigneachirrigationcustomera waterbudget. Anywater consumedabovethe irrigation customersallottedamountissubjectto ahigherTier2 ratebasedoneachcustomer’sshare of conservationprogramcosts.

APPENDIXA showsthe District’s historicalwater usetrendsfrom the prior year. BWA’s proposedratesaredesignedto matchvolumetricexpenses (suchaswaterpurchases) with volumetricrevenue. Therate structuremitigatesoveror undercollectingrevenuedue to fluctuationsin wateruse.

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District ResidentialTierAllotments
Thetiered rate allotmentsaredesignedto alignwith the state’s gallonper capitaper day GPCD) mandate. Low-tier usersarealreadyconsumingwaterwithin the prescribedlimits, meaningtheir consumptiondoesnot drive the needfor the conservationprogram. The Districtisrequiredto incurthecostsof the conservationprogramto offsetwateroveruseby thosecategoriesof waterusers (Tier2 users) that exceedthe state’sGPCDthreshold. Thus, those Tier 2 usersare required to pay their proportionateshareof the costsof the conservationprogram.

While Tier 1 usersparticipatein the program, their conservationefforts are aimed at offsettingtheoveruseof Tier2 users. Thenecessityfor Tier1 conservationarisesbecauseof thehighconsumptionin Tier2.

SFPUCWholesaleRatePassthrough
SFPUCestablishesthewholesalewaterrateandfor eachunitof watertheDistrictpurchases, whichaccountsfor 100% of the District’s water supply. If SFPUCincreasesthe wholesale waterrate, theDistrictisauthorizedto passthroughtheincreaseto customersinaccordance with GovernmentCodesection53756.

Theformulafor calculatingthe passthroughamountwill be: (AdditionalSFPUC $ Amount PerCCFAboveStudyProjections / 0.9) additionalchargefor eachunit of water usage, where0.9accountsfor10% waterloss. TheDistrictwillprovide30days’ noticebeforepassing throughan increasein water rates. TheDistrictwill not conveneanotherpublichearing beforepassingthroughanyincreasein the District’swaterrates.

Forexample, if the SFPUCratein FY2027is $5.94, the passthroughwouldbecalculatedas the following: ($5.94-$5.85)/0.9 = $0.10perccf. $0.10perccfwouldbeaddedto all District volumetricrates. The0.9 factorisdesignedto adjustfor thefactthat theDistrictsells90% of itswaterpurchases.

To elucidatethe pass-through calculationwith a simpleexample: Supposean individual purchases10 applesfor $1 andisonlyableto sell5 of them. Tofully recoverthe cost, the sellingpriceper applewouldneedto be $2. Thisscenariorepresentsa losspercentageof 50%.

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Now, if thepurchasepriceperappledoublesto $2andthepriceincreaseisonlyraisedbythe difference (i.e., $1), then the total expenditurewould be $20 (10 applesx $2 per apple).

However, only $15wouldbegeneratedin revenue (5 applesx $3 perapple). Therefore, the priceincreasemustbepassedonbydividingtheincreaseby (1 - losspercentage).

Thenecessarypriceincreaseshouldbecalculatedas: ($1/0.5) = $2 Withthisadjustment, the expenditureremains $20 (10applesx $2 perapple) andthe revenuegeneratedis $20 (5 applesx $4 perapple).

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Table4
City of Foster City / Estero MunicipalImprovementDistrict CurrentRates
CurrentRates 2025
Fixed Meter Charge
Monthly Meter Charge
Meter Size
3/4"$ 28.85
1"$ 48.08
1-1/2"$ 115.40
2"$ 153.87
3"$ 336.58
4"$ 605.85
6"$ 1,346.33
8" or greater $ 2,308.00
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier1 0-20 per ccf $ 6.60
Tier2 Over20 ccf $ 7.33
Multi-Family Residential
Tier1 0-10 ccf per livingunit $ 6.60
Tier2 Over10 ccf per livingunit $ 7.36
IrrigationCustomers
Tier1 <=100% of annualbudget $ 6.60
Tier2 >100% of annualbudget $ 7.80
Commercialand Fire Line
All usage $ 6.72
Monthly Private Fire Protection Charge
Meter Size
1-1/2" & below $ 40.39
2"$ 53.95
3"$ 117.71
4"$ 212.05
6"$ 471.12
8" or greater $ 807.80

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LowIncomeDiscount
CurrentlytheDistricthasapproximately34customersenrolledin the Water/Wastewater RateAssistanceProgram (WWRAP), whichwasimplementedin 2020. Customersmeeting theeligibilityandqualificationrequirementsbelowaregrantedadiscountof upto $15per montheachontheirqualifyingWateraccounts, not to exceeda $30permonthdiscountper customer. Tobeeligiblefor theWWRAP, customersmustshowthat theyqualifyfor the PG&ECAREProgramor otherpublicassistanceprogramor submitproofof income eligibility.

Theestimatedmaximumpotentialcostof a $15/monthdiscountfor 34customersamounts to $6,120peryear. Sincethelow incomediscountrevenuesourcescannotbefundedwith rates, ratesareunaffectedbythedecisiononthetermsof theprogramandhencearenot requiredto beincludedin theProposition218notification.

TheDistrictfundsthecurrentlowincomediscountthroughnon-ratesourcesof revenue suchasfinesandpenalties, celltowerleaseandgeneralfundrevenueto maintain compliancewith CaliforniaProposition218. Thediscountisrecommendedto beprovidedas fundsareavailable. Latepenaltiescollectedyearto datefor waterin FY2025amountedto 27,000, exceedingthecostof theprogram.

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APPENDIXA

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APPENDIXB

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APPENDIXC
Table 5
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Fiscal YearEndingJune30 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Assumptions:

InterestEarningsRate 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% RevenueIncreasefromGrowth [1] 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Fixed Charge $ 28.85 $ 31.30 $ 33.80 $ 36.15 $ 38.70 $ 41.40 $ 43.05 $ 44.75 $ 46.55 $ 48.40 $ 50.35 Fixed RateAdjustment 8.5% 8.0% 7.0% 7.1% 7.0% 4.0% 3.9% 4.0% 4.0% 4.0% SFR Variable Charge $ 6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84 $ 8.17 $ 8.44 $ 8.72 $ 9.01 $ 9.31 VariableRateAdjustment 3.0% 3.2% 3.8% 3.7% 3.7% 4.2% 3.3% 3.3% 3.3% 3.3% MonthlyServiceChargeSingleFamily (8 ccf)$ 81.65 $ 85.70 $ 89.96 $ 94.47 $ 99.18 $ 104.12 $ 108.41 $ 112.27 $ 116.31 $ 120.48 $ 124.83 RateAdjustment 5.0% 5.0% 5.0% 5.0% 5.0% 4.1% 3.6% 3.6% 3.6% 3.6% Beginning Fund Balance $ 11,194,614 $ 10,550,000 $ 8,088,500 $ 5,985,400 $ 8,468,600 $ 7,154,900 $ 6,505,800 $ 6,364,800 $ 6,383,800 $ 6,592,800 $ 6,998,800 Revenues
WaterSales & ServiceCharges
MeterChargeRevenueEstimate 7,004,000 7,626,000 8,265,000 8,872,000 9,533,000 10,235,000 10,682,000 11,144,000 11,635,000 12,142,000 12,677,000 Volumetric Revenue Estimate 11,171,000 11,548,000 11,961,000 12,462,000 12,968,000 13,481,000 14,090,000 14,600,000 15,135,000 15,687,000 16,258,000 Debt Issuance / Interfund Loan 0 0 0 4,000,000 0 0 0 0 0 0 0 ConnectionFees [1] 0 0 0 0 0 0 0 0 0 0 0
InterestEarnings - OperatingReserve [2] 336,000 317,000 243,000 180,000 254,000 215,000 195,000 191,000 192,000 198,000 210,000 Other 0 0 0 0 0 0 0 0 0 0 0
Operating Revenues 18,511,000 19,491,000 20,469,000 25,514,000 22,755,000 23,931,000 24,967,000 25,935,000 26,962,000 28,027,000 29,145,000 Expenses
EmployeeServices 2,956,001 3,387,751 3,523,261 3,664,191 3,810,759 3,963,190 4,122,000 4,287,000 4,458,000 4,636,000 4,821,000 AdditionalCost 0 31,339 303,873 313,542 324,103 335,045 348,000 362,000 376,000 391,000 407,000 InternalServices - Others 1,244,701 1,449,956 1,486,205 1,523,360 1,561,444 1,600,480 1,640,000 1,681,000 1,723,000 1,766,000 1,810,000 InternalServices - ERF 456,767 396,971 406,895 417,068 427,494 438,182 449,000 460,000 472,000 484,000 496,000 Services & Supplies 817,062 979,062 1,003,539 1,028,627 1,054,343 1,080,701 1,108,000 1,136,000 1,164,000 1,193,000 1,223,000 SFPUCWaterPurchases 10,467,000 10,814,000 10,966,000 11,119,000 11,742,000 12,727,000 13,218,000 13,728,000 14,258,000 14,808,000 15,380,000 BAWSCA BondRepayment 601,416 670,356 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 675,000 Reallocation 1,362,521 1,373,045 1,407,371 1,442,555 1,478,619 1,515,585 1,553,000 1,592,000 1,632,000 1,673,000 1,715,000 CapitalOutlay / Vehicles 0 0 0 0 0 0 0 0 0 0 0
Operating Expenses 17,905,468 19,102,480 19,772,144 20,183,343 21,073,763 22,335,182 23,113,000 23,921,000 24,758,000 25,626,000 26,527,000 Operating Net Revenues 605,532 388,520 696,856 5,330,657 1,681,237 1,595,818 1,854,000 2,014,000 2,204,000 2,401,000 2,618,000 Water Sustainability Fund Transfer 250,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Capital Improvement Transfer [3] 1,000,000 2,600,000 2,600,000 2,500,000 2,500,000 1,750,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Proj. Debt Service (6%, 1.5% issuance, 30yr) 0 0 0 147,477 294,955 294,955 294,955 294,955 294,955 294,955 294,955 TotalExpenses 19,155,468 21,952,480 22,572,144 23,030,820 24,068,718 24,580,137 25,107,955 25,915,955 26,752,955 27,620,955 28,521,955 Revenues Less O&M Expenses 605,532 388,520 696,856 5,330,657 1,681,237 1,595,818 1,854,000 2,014,000 2,204,000 2,401,000 2,618,000 Revenues Less Total Expenses ( 644,468) ( 2,461,480) ( 2,103,144) 2,483,180 ( 1,313,718) ( 649,137) ( 140,955) 19,045 209,045 406,045 623,045 Ending Fund Balance 10,550,146 8,088,520 5,985,356 8,468,580 7,154,882 6,505,763 6,364,845 6,383,845 6,592,845 6,998,845 7,621,845 Revenue Test: AnnualRevenues > O&M Expenses
AnnualRevenuesLess O&M Expenses 605,532 388,520 696,856 5,330,657 1,681,237 1,595,818 1,854,000 2,014,000 2,204,000 2,401,000 2,618,000 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: MinimumFundBalance > 25% O&M Expenses Year-endfundbalance 10,550,146 8,088,520 5,985,356 8,468,580 7,154,882 6,505,763 6,364,845 6,383,845 6,592,845 6,998,845 7,621,845 25% operatingexpenses 4,420,000 4,710,000 4,880,000 4,980,000 5,200,000 5,510,000 5,700,000 5,900,000 6,100,000 6,320,000 6,540,000 of Days O&M in Reserves 215 155 110 153 124 106 101 97 97 100 105 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS DebtServiceCoverage 9.02 5.70 5.41 6.29 6.83 7.47 8.14 8.88 1] Connectionfees not includedin this analysis
2] Calculatedas 3% of the BeginningFundBalanceof the WaterRevenueFund 3] CapitalImprovementsare fundedthroughthe Long-TermCapitalImprovementProjectFund FiveYearProjection ExtendedYearProjection

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Table 6
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
Fiscal Year Ending June 30 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Fixed Meter Charge Increase 8.50% 8.00% 7.00% 7.00% 7.00% 4.00% 4.00% 4.00% 4.00% 4.00% Fixed Revenues +/- 6% of Fixed Costs? YES YES YES YES YES YES YES YES YES YES Reserves % Above ( Below) Reserve Target 171.7% 122.7% 170.1% 137.6% 118.1% 111.7% 108.2% 108.1% 110.7% 116.5% Reserve Target Met? YES YES YES YES YES YES YES YES YES YES Revenue Estimates
Meter Charge Revenue 7,004,000$ 7,626,000$ 8,265,000$ 8,872,000$ 9,533,000$ 10,235,000$ 10,682,000$ 11,144,000$ 11,635,000$ 12,142,000$ 12,677,000$ Other Fixed Revenue 336,000$ 317,000$ 243,000$ 180,000$ 254,000$ 215,000$ 195,000$ 191,000$ 192,000$ 198,000$ 210,000$ Volumetric Revenue 11,171,000$ 11,549,000$ 11,960,000$ 12,456,000$ 12,964,000$ 13,484,000$ 14,093,000$ 14,603,000$ 15,126,000$ 15,677,000$ 16,250,000$ Total Projected 18,511,000$ 19,492,000$ 20,468,000$ 21,508,000$ 22,751,000$ 23,934,000$ 24,970,000$ 25,938,000$ 26,953,000$ 28,017,000$ 29,137,000$ Total Projected Revenue ( Rounded ' 000's) 18,511,000$ 19,492,000$ 20,468,000$ 21,508,000$ 22,751,000$ 23,934,000$ 24,970,000$ 25,938,000$ 26,953,000$ 28,017,000$ 29,137,000$ Revenue Allocation
Fixed 39.7% 40.8% 41.6% 42.1% 43.0% 43.7% 43.6% 43.7% 43.9% 44.0% 44.2% Variable 60.3% 59.2% 58.4% 57.9% 57.0% 56.3% 56.4% 56.3% 56.1% 56.0% 55.8% Costs Estimates
Fixed Costs [ 1]$ 7,837,052 $ 10,218,124 $ 10,731,144 $ 11,036,820 $ 11,451,718 $ 10,978,137 $ 11,014,955 $ 11,312,955 $ 11,619,955 $ 11,937,955 $ 12,266,955 Variable Costs [ 2]$ 11,318,416 $ 11,734,356 $ 11,841,000 $ 11,994,000 $ 12,617,000 $ 13,602,000 $ 14,093,000 $ 14,603,000 $ 15,133,000 $ 15,683,000 $ 16,255,000 Total Projected Costs $ 19,155,468 $ 21,952,480 $ 22,572,144 $ 23,030,820 $ 24,068,718 $ 24,580,137 $ 25,107,955 $ 25,915,955 $ 26,752,955 $ 27,620,955 $ 28,521,955 Net Revenue
Fixed Charges -$ 497,052 -$ 2,275,124 -$ 2,223,144 -$ 1,984,820 -$ 1,664,718 -$ 528,137 -$ 137,955 $ 22,045 $ 207,045 $ 402,045 $ 620,045 Volumetric Charges -$ 147,416 -$ 185,356 $ 119,000 $ 462,000 $ 347,000 -$ 118,000 $ 0 $ 0 -$ 7,000 -$ 6,000 -$ 5,000 Total -$ 644,468 -$ 2,460,480 -$ 2,104,144 -$ 1,522,820 -$ 1,317,718 -$ 646,137 -$ 137,955 $ 22,045 $ 200,045 $ 396,045 $ 615,045 Cost Analysis
Fixed 40.9% 46.5% 47.5% 47.9% 47.6% 44.7% 43.9% 43.7% 43.4% 43.2% 43.0% Variable 59.1% 53.5% 52.5% 52.1% 52.4% 55.3% 56.1% 56.3% 56.6% 56.8% 57.0% Meter Charge Calculation
Monthly charge per meter equivalent 28.85$ 31.30$ 33.80$ 36.15$ 38.70$ 41.40$ 43.05$ 44.75$ 46.55$ 48.40$ 50.35$ Rounded to nearest $0.05)
Annual charge per meter equivalent 346.20$ 375.60$ 405.60$ 433.80$ 464.40$ 496.80$ 516.60$ 537.00$ 558.60$ 580.80$ 604.20$ Meter equivalents [3] 20,229 20,303 20,377 20,452 20,527 20,602 20,677 20,753 20,829 20,905 20,982 Meter Charge Revenue Estimate 7,004,000$ 7,626,000$ 8,265,000$ 8,872,000$ 9,533,000$ 10,235,000$ 10,682,000$ 11,144,000$ 11,635,000$ 12,142,000$ 12,677,000$ Volumetric Rate Calculation
EMID Proposed Uniform Rate $ 6.72 6.92$ 7.14$ 7.41$ 7.68$ 7.96$ 8.29$ 8.56$ 8.83$ 9.12$ 9.42$ Projected annual water sales (ccf) [4] 1,662,412 1,669,000 1,675,000 1,681,000 1,688,000 1,694,000 1,700,000 1,706,000 1,713,000 1,719,000 1,725,000 Variable revenue estimate $ 11,171,000 $ 11,549,000 $ 11,960,000 $ 12,456,000 $ 12,964,000 $ 13,484,000 $ 14,093,000 $ 14,603,000 $ 15,126,000 $ 15,677,000 $ 16,250,000 Spread between EMID and SFPUC
Surcharge 18.5% 19.5% 22.1% 25.4% 23.5% 18.5% 19.2% 18.9% 18.5% 18.3% 18.0% SFPUC PROJECTED RATES $ 5.67 $ 5.79 $ 5.85 $ 5.91 $ 6.22 $ 6.72 $ 6.96 $ 7.20 $ 7.45 $ 7.71 $ 7.98 Increase ( Decrease) % 2.1% 1.0% 1.0% 5.2% 8.0% 3.5% 3.5% 3.5% 3.5% 3.5% BAWSCA Surcharge $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 SFPUC Rate + BAWSCA Surcharge $ 6.03 $ 6.15 $ 6.21 $ 6.27 $ 6.58 $ 7.08 $ 7.32 $ 7.56 $ 7.81 $ 8.07 $ 8.34 EMID Fixed Meter Charge Increase ( Decrease) 8.5% 8.0% 7.0% 7.1% 7.0% 4.0% 3.9% 4.0% 4.0% 4.0% EMID Volumetric Rate Increase ( Decrease) 3.0% 3.2% 3.8% 3.6% 3.6% 4.1% 3.3% 3.2% 3.3% 3.3% 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
FiveYearProjection ExtendedYearProjection

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Table 7
City of Foster City / Estero Municipal ImprovementDistrict Proposed Water Rates - Two Tier Hybrid Model
Current
Rates FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 FY2035 Monthly Meter Charge
3/4"$ 28.85 $ 31.30 $ 33.80 $ 36.15 $ 38.70 $ 41.40 $ 43.05 $ 44.75 $ 46.55 $ 48.40 $ 50.35 1" 48.08 52.17 56.33 60.25 64.50 69.00 71.75 74.58 77.58 80.67 83.92 1-1/2" 115.40 125.20 135.20 144.60 154.80 165.60 172.20 179.00 186.20 193.60 201.40 2" 153.87 166.93 180.27 192.80 206.40 220.80 229.60 238.67 248.27 258.13 268.53 3" 336.58 365.17 394.33 421.75 451.50 483.00 502.25 522.08 543.08 564.67 587.42 4" 605.85 657.30 709.80 759.15 812.70 869.40 904.05 939.75 977.55 1,016.40 1,057.35 6" 1,346.33 1,460.67 1,577.33 1,687.00 1,806.00 1,932.00 2,009.00 2,088.33 2,172.33 2,258.67 2,349.67 8" or greater 2,308.00 2,504.00 2,704.00 2,892.00 3,096.00 3,312.00 3,444.00 3,580.00 3,724.00 3,872.00 4,028.00 Conservation- Based Water Rate Model ( based on bi-monthly allotments)* Single Family Residential
Tier 1 0-20 per ccf 6.60 6.80 7.02 7.29 7.56 7.84 8.17 8.44 8.72 9.01 9.31 Tier 2 Over20 ccf 7.33 7.56 7.79 8.08 8.34 8.59 8.92 9.19 9.46 9.75 10.05 Multi- Family Residential ( per living unit)
Tier 1 0-10 ccf per living unit 6.60 6.80 7.02 7.29 7.56 7.84 8.17 8.44 8.72 9.01 9.31 Tier 2 Over10 ccf per living unit 7.36 7.54 7.77 8.06 8.32 8.57 8.90 9.17 9.44 9.73 10.03 Irrigation Customers
Tier 1 <= 100% of annual budget 6.60 6.80 7.02 7.29 7.56 7.84 8.17 8.44 8.72 9.01 9.31 Tier 2 >100% of annual budget 7.80 7.76 8.00 8.29 8.55 8.79 9.12 9.39 9.66 9.95 10.24 Commercial and Fire Line Customers
Base Consumption Rate 6.72 6.92 7.14 7.41 7.68 7.96 8.29 8.56 8.83 9.12 9.42 Monthly Fire Meter Charge
1-1/2" & below 40.39 43.82 47.32 50.61 54.18 57.96 60.27 62.65 65.17 67.76 70.49 2" 53.95 58.53 63.21 67.60 72.37 77.42 80.50 83.68 87.05 90.51 94.15 3" 117.71 127.70 137.90 147.49 157.90 168.91 175.64 182.58 189.92 197.47 205.43 4" 212.05 230.06 248.43 265.70 284.45 304.29 316.42 328.91 342.14 355.74 370.07 6" 471.12 511.13 551.95 590.33 631.97 676.06 703.01 730.77 760.16 790.37 822.22 8" or greater 807.80 876.40 946.40 1,012.20 1,083.60 1,159.20 1,205.40 1,253.00 1,303.40 1,355.20 1,409.80 Minimum charge is equivalentto 1-1/2" meter charge)

TWO TIER HYBRID MODEL
Recommended Rates
Recommended SFPUC wholesale rate pass through formula: ( Additional SFPUC $ Amount Per HCF Above Study) / ( 0.9) added to each volumetric rate.

0.9 Accounts for 10% Water loss

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Table8
Foster City / Estero Municipal ImprovementDistrict
Projected Water Rate Impacts
Current FY2026
Rates TwoTierHybridModel
Monthly meter charge $ 28.85 $ 31.30
Change 8.5%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf $ 6.60 $ 6.80
Tier 2: over20 ccf $ 7.33 $ 7.56
Water Monthly
Use Level Use (ccf) Monthly Bill
Low User 5 $ 61.85 $ 65.30
Increase 3.45
Increase 5.6%
Median User 6 $ 68.45 $ 72.10
Increase 3.65
Increase 5.3%
Average User 8 $ 81.65 $ 85.70
Increase 4.05
Increase 5.0%
High User 10 $ 94.85 $ 99.30
Increase 4.45
Increase 4.7%
Very High User 20 $ 160.85 $ 174.90
Increase 14.05
Increase 8.7%
Excessive User 50 $ 380.75 $ 401.70
Increase 20.95
Increase 5.5%

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Table9
Foster City / Estero Municipal ImprovementDistrict
Projected Water Rate Impacts
Current
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Two Tier Hybrid Model
Single Family Residential Monthly Rate $ 81.65 $ 85.70 $ 89.96 $ 94.47 $ 99.18 $ 104.12 $ 108.41 $ 112.27 $ 116.31 $ 120.48 $ 124.83 Increase 4.05 4.26 4.51 4.71 4.94 4.29 3.86 4.04 4.17 4.35 Increase 5.0% 5.0% 5.0% 5.0% 5.0% 4.1% 3.6% 3.6% 3.6% 3.6% Based on Single Family Residential Use of 8 ccf
FiscalYearEndingJune30 ExtendedYearProjectionProjectedWater Bills

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APPENDIXD

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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C. TheseProcedures will take effect upon approval on March 24, 2025, and will applyto anyproposednewor increasedwaterratesof whichnoticeis providedin accordance with these procedures.

Rate Setting Procedures

1. Overview of Exhaustion Procedure (GovernmentCode section 53759.1)

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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4. Requirements for Submitting Timely Written Protests
TheDistrict will consider each timely written objection to also serveas a timely written protest from a record owner.

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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Page7 of 10 (EMIDRate Setting Procedures; March 24, 2025) clarication, or reduction is needed, and whether to proceed to the Proposition218 protest hearing.

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

291

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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NOTICEOF

PUBLIC HEARINGON

PROPOSEDWATERAND

WASTEWATERRATES
Monday, June2, 2025, 6:30P.M.

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ThedeadlineforwrittenobjectionsisMay15, 2025at
5pm. Tobeconsideredtimely, suchobjectionsmustbe
receivedbytheEMIDCityClerk/DistrictSecretaryatthe
returnaddressonthisnotice.

RateAssistanceProgram
TheDistrictmaybeabletoofferRateAssistance
discountstoqualifyingcustomers. Tolearnmoreorto
apply, visit: www.fostercity.org/wwrap.

WaterConservationTips
Waterisapreciousresource! Thankyoufortaking
stepstosavewaterandloweryourmonthlybill.

Switchfromlawntodrought-tolerantlandscape.

Turnthefaucetoffwhilebrushingyourteeth.

Runonlyfullloadsintheclotheswasheror
dishwasher.

Fixleaksaroundyourhome
WaterConservationRebates
Getmoneytohelppayforwater-savingchangesat
yourhomeorbusiness. Forinformationonwater
conservationrebateprograms, visit
www.fostercity.org/rebates.

Gov Code Section 53759.)

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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8.53 $ 8.53 $ 8.70 $ 8.87 $ 9.05 $ 9.23
LowStrength $ 5.61 $ 5.61 $ 5.72 $ 5.83 $ 5.95 $ 6.07
WaterRatesandPass-ThroughforWaterUseRates
Waterratesincludefixedwatermeterchargesandwaterusecharges.

PUBLICHEARINGNOTICE
Questions
Ifyouhavequestionsregardingthisnotice, pleasecontact (650) [email protected].

8.3 Attachment 2 - EMID Resolution No. 3804 Adopting Water Rates effective July 1, 2025, with annual adjustments each July 1 through 2029

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Exhibit D – Water Rate Schedule
Water Use Rates for Single- Family Residences
Water Use Rates for Multi- Family Residences ( per living unit) Per CCF
Charge
bi-
monthly
billing
cycle) Current
Proposed
FY 25- 26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Tier 1—
0 to 10
ccf

6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84
Tier 2—
Over 10
ccf

Foster City City CouncilApril 20, 2026

Foster City City Council
April 20, 2026