CITY OF SAN MATEO
opk CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 26-10939 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: March 16, 2026
SUBJECT:
City of Foster City Interest on Wastewater Treatment Plan Payments — Agreement RECOMMENDATION:
Approve an agreement with the City of Foster City to receive an interest payment for the Wastewater Treatment Plant Master Plan Improvement Projects in the amount of $148,141.70; and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
As part of the Clean Water Program, the Wastewater Treatment Plant Master Plan Improvements Project (Project) expands and upgrades the existing San Mateo Wastewater Treatment Plant. City staff manages the Project and its finances.
Beginning in April 2023, San Mateo advanced Foster City’s share of project costs due to debt-related cash flow constraints.
As a result, San Mateo lost interest earnings it would otherwise have earned, while Foster City retained and earned interest on its cash. Due to staff turnover in San Mateo, no written agreement governing these advances was executed, nor was Foster City invoiced for its share of Project costs.
The cities now agree that Foster City shall reimburse San Mateo for foregone interest earnings for the period of April 2023 through November 2023, when Foster City requested an invoice to pay its full share of the cost. The proposed agreement is included as Attachment 1. Details of the reimbursement are as follows:
• Interest is calculated at 1.9%, equal to the Clean Water Program’s average debt cost. • Interest is applied to the monthly advances which accumulated to $19,665,305 in November of 2023. • Total reimbursement amount equals $148,141.70 (as shown on the invoice in Attachment 2).
Based on the above, staff recommends Council to approve the proposed agreement to receive an interest payment from Foster City in the amount of $148,141.70.
BUDGET IMPACT:
There is no budget impact from this agreement. The interest revenue was anticipated to be received in this fiscal year.
ENVIRONMENTAL DETERMINATION:
This agreement is not a project subject to CEQA, because it consists of a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
CITY OF SAN MATEO
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Foster City - San Mateo Interest Agreement
Att 2 – Invoice to City of Foster City
STAFF CONTACT
Abby Veeser, Finance Director
[email protected]
(650) 522-7102