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 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 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 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 1 | P ag e
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 2 | P ag e
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, 3 | P ag e
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 8 | P ag e
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 22 | P ag e
APPENDIXD
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) 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.
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, 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.
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.
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, 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.
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.
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.
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.
NOTICEOF
PUBLIC HEARINGON
PROPOSEDWATERAND
WASTEWATERRATES
Monday, June2, 2025, 6:30P.M.
Es
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3335
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.)
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 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
7.36 $ 7.54 $ 7.77 $ 8.06 $ 8.32 $ 8.57
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
20 ccf
6.60 $ 6.80 $ 7.02 $ 7.29 $ 7.56 $ 7.84
Tier 2— Over
20 ccf
7.33 $ 7.56 $ 7.79 $ 8.08 $ 8.34 $ 8.59
Exhibit D – Water Rate Schedule
Water Use Rates for Irrigation Customers
Water Use Rates for Commercial Customers and Fire Line
Per CCF
Charge Current
Proposed
FY 25- 26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
All
Usage
6.72 $ 6.92 $ 7.14 $ 7.41 $ 7.68 $ 7.96
Per CCF
Charge Current
Proposed
FY 25- 26
Proposed
FY 26-27
Proposed
FY 27-28
Proposed
FY 28-29
Proposed
FY 29-30
Monthly Water Consumption Budget
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
Exhibit D – Water Rate Schedule
Fixed Water Meter Rates
Monthly
Charge Current
Proposed
FY 25-26
Proposed
FY 26- 27
Proposed
FY 27- 28
Proposed
FY 28- 29
Proposed
FY 29- 30
Domestic and/ or Irrigation Customers
5/8” and
3/4”$ 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”or
greater $ 2,308. 00 $ 2,504. 00 $ 2,704. 00 $ 2,892. 00 $ 3,096. 00 $ 3,312. 00 Private Fire Service Protection Meter
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” or
greater $ 807. 80 $ 876. 40 $ 946. 40 $ 1,012. 20 $ 1,083. 60 $ 1,159. 20