Foster City maintains the levee along the Bayfront, surrounding the majority of the outer perimeter of the City. The levee is Foster City’s most valuable safety asset and is primarily designed for flood protection.

FEMA has recently conducted a coastal flood hazard study which has determined that Foster City's levee system does not meet minimum FEMA requirements for flood protection. Unless changes are made to the levee system, the entire city will be placed in a flood zone designation that will require homeowners or businesses with federally insured loans to pay an estimated $2,000-$3,000 in mandatory, annual flood insurance, while remaining at flood risk.

Improving the levee protects essential city services during storms and protects Foster City homes, schools, businesses and roads from flooding. Without improvements, any upgrades to buildings may trigger a requirement that most homes and buildings be raised several feet off the ground.

FEMA is the Federal Emergency Management Agency. The Federal Emergency Management Agency coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Foster City has spent the last three years extensively exploring all improvement and funding options so the levee once again meets FEMA standards. The City has met with skilled teams of financial and legal advisors, engineering teams, environmental agencies, local elected officials, Caltrans, San Mateo County Sea Change and others to evaluate all possible options for improving the levee. An Environmental Impact Report for the Levee Protection Improvements Project has been publicly reviewed, considered and was adopted on May 8, 2017. The City has involved the community throughout the process through informational meetings and publicly available information on the Foster City Public Works website.

The City Council placed Measure P, a $90 million bond measure to fund levee improvements, on the June 2018 ballot. Measure P would generate locally-controlled funds to improve the levee to meet FEMA accreditation, protect our City and essential services during storms and flooding and save property owners from an estimated $2,000-$3,000 in mandatory, annual flood insurance.

Specifically, funds from Measure P would be used to:

• Protect essential city services during storms, like fire, police, water, sewer and transportation infrastructure

• Improve the levee to protect Foster City homes, schools, businesses and roads from flooding

• Protect the levee from earthquake damage

• Prevent Foster City from being designated as a flood hazard area by FEMA

• Avoid expensive, mandatory flood insurance requirements for local homeowners and businesses

Measure P would include fiscal accountability provisions. A independent citizens’ oversight committee audit committee would ensure all funds are spent as promised on voter-approved projects and all funds stay local to improve the Foster City levee system. No funds from the measure could go to administrators’ salaries.

If all $90 million of bonds are issued at once, a total tax levy of approximately $40 per $100,000 assessed value would cost a property owner with an average taxable assessed value of $680,000 (an assumption based on the City’s total residential assessed value and number of residential parcels) a total tax bill of approximately $272 for the first annual assessment. The cost of the bond will last 30 years.

Without the measure, homeowners and businesses will be required to pay an estimated $2,000-$3,000 per year or more in flood insurance, indefinitely. Additionally, without FEMA accreditation, homeowners will have to disclose to potential buyers that the property is in a flood hazard area, which may affect property values.

By law, funding from Measure P could not be taken away by the State or used for other purposes by the City Council now or in the future. These funds would be protected and restricted to fund levee improvements.

Foster City has historically been considered in Zone X (a low-risk flood area) under FEMA accreditation. The City received a letter from FEMA indicating that the Foster City levee had been accredited on July 23, 2007.

In July 2014, FEMA completed the Central San Francisco Bay Coastal Flood Hazard Study as part of the California Coastal Analysis and Mapping Program. The Coastal Flood Hazard Study indicated that the Foster City levee is deficient for flood protection and will not retain accreditation without improvements.

On April 28, 2015 the City wrote a letter to FEMA accepting Seclusion Mapping designation, which allows for Foster City properties to temporarily remain out of the flood zone as long as progress is made on the levee project.

The City’s General Fund reserves are not sufficient to fund a once-in-a-generation infrastructure investment like improving the levee to meet FEMA standards. Using the General Fund reserves for these improvements would deplete this safety net and leave the City vulnerable in the event of a financial emergency or any sort of disaster. However, a portion of General Fund reserves are available as a contingency to cover cost overages or project enhancements to limit the amount paid by local property owners to no more than $40 per $100,000 of assessed (not market) property value.

The bond would be issued for 30 years at approximately $40 per $100,000 assessed, not market, value per year. On the other hand, mandatory flood insurance would be an estimated $2,000-$3,000 per year, indefinitely.

There are currently no local, state or federal funding sources available for the levee project. We have been and will continue to monitor any grant opportunities.

The FEMA designation is a federal mandate. Foster City is currently able to stay outside of the flood zone on a temporary basis, but the City must continue to show progress with levee improvements to maintain this designation, keep properties out of the flood zone and avoid mandatory flood insurance.