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
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 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 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 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 1 | P ag e
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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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 7 | P ag e
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.
APPENDIXA
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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
15 | P ag e
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
16 | P ag e
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
17 | P ag e
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
APPENDIXC
18 | P ag e
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 – 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