MINUTES
CITY OF LINCOLN
CITY COUNCIL, PUBLIC FINANCE AUTHORITY
and REDEVELOPMENT SUCCESSOR AGENCY
Regular Meeting
November 8, 2022
OPEN SESSION MEETING
Meeting conducted in-person at City Hall, 600 6th Street, Lincoln, CA and virtually on Zoom with Live Stream on City of Lincoln YouTube Channel and WAVE Channel 18.
1. CALL TO ORDER by Mayor Andreatta at 6:02 PM.
2. ROLL CALL: Councilmembers present:
Paul Joiner
Dan Karleskint
William Lauritsen
Alyssa Silhi
Mayor Holly Andreatta
Roll Call: 5 members present, 0 members absent, 0 members excused.
Staff members present: Sean Scully, City Manager
Kristine Mollenkopf, City Attorney
Matt Alves, Public Safety Chief
Nita Wracker, Finance Director
Gwen Scanlon, City Clerk
Jennifer Brown, CITO (IT)
Travis Williams, City Engineer
Leslie Tetley Jodrey, Deputy City Clerk
Various City employees, consultants and members of the public were also present in person and via teleconference.
3. REPORT FROM CLOSED SESSION – Kristine Mollenkopf, City Attorney, reported there is no reportable action.
4. PLEDGE OF ALLEGIANCE – Led by Mark Andretta, a Lincoln resident.
5. AGENDA MODIFICATIONS – Staff recommended to move item 10.B after item 6.A.
6. PRESENTATIONS
6.A. Sacramento Area Council of Governments (SACOG) Blueprint presentation, presented by James Corless, SACOG Executive Director, made a part of these minutes by a mention thereof.
Mr. Corless provided an update on the “Metropolitan Transportation Plan Sustainable Community’s Strategy.”
Mayor Andreatta thanked Mr. Corless for the presentation and asked if Council had comments or questions.
Councilmembers asked questions regarding additional commuter services, vehicle miles traveled analysis, and environmental justice would tie into our local conditions and priorities.
Mayor Andreatta asked if there were any public comments on Zoom or in Council Chambers.
1. Bryon Chapman, a Lincoln resident, asked if the State of California’s push for electric vehicles is a part of the study.
Mr. Corless thanked Mr. Chapman for the question and acknowledged SACOG is reviewing electrical vehicle impact.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
November 8, 2022
GENERAL BUSINESS
10.B. Adopt RESOLUTION 2022-256 approving:
1. Approve the Lincoln-Sewer Maintenance District 1 Wastewater Authority Joint Powers Agreement and authorize the City Manager to execute the agreement subject to City Attorney and Risk Management concurrence; and
2. Appoint two Councilmembers and one alternate to serve as Members of the Lincoln-Sewer Maintenance District 1 Wastewater Authority Board of Directors; and
3. Authorize the City Manager, or Designee, to execute such documents and take such actions as are necessary to implement the Lincoln–Sewer Maintenance District 1 Wastewater Authority Joint Powers Agreement.
City Manager Sean Scully, gave a presentation made a part of these minutes by mention thereof and thanked City and Placer County staff, consultants and Councilmembers for their contributions.
Mayor Andreatta asked Councilmembers if they had questions or comments. A lengthy discussion ensued with Councilmembers and City Staff.
Mayor Andreatta asked if there were public comments on Zoom or in Council Chambers.
1. Placer County Supervisor Bonnie Gore, thanked City Staff and Council for collective efforts.
Mayor Andreatta thanked Placer County Supervisor Bonnie Gore for speaking then brought the discussion back to City Council.
Mayor Andreatta thanked City and Placer County Staff and Placer County Supervisors for their efforts.
Mayor Andreatta asked for a motion to adopt RESOLUTION 2022-256 10.B item 1, as amended, approving:
1. The Lincoln-Sewer Maintenance District 1 Wastewater Authority Joint Powers Agreement and authorize the City Manager to execute the agreement subject to City Attorney and Risk Management concurrence. The amended section is as follows titled Governance 7.1: One of the Directors from the County must be a Supervisor whose district includes the City of Lincoln.
Councilmember Karleskint motioned approval of 10.B item 1 and the motion was seconded by Councilmember Silhi. By the following Vote (Approved): Karleskint – Aye, Silhi – Aye, Joiner- Aye, Lauritsen – Aye, Mayor Andreatta – Aye.
City Attorney Kristine Mollenkopf, recommended Council to also adopt:
3. RESOLUTION 2022-256 10.B item 3, to authorize the City Manager, or Designee, to execute such documents and take such actions as are necessary to implement the Lincoln–Sewer Maintenance District 1 Wastewater Authority Joint Powers Agreement.
Councilmember Joiner motioned approval of 10.B item 3 and the motion was seconded by Councilmember Silhi. By the following Vote (Approved): Joiner– Aye, Silhi – Aye, Karleskint Aye, Lauritsen – Aye, Mayor Andreatta – Aye.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
November 8, 2022
Councilmember discussion ensued regarding Councilmember appointment to the Lincoln-Sewer Maintenance District 1 Wastewater Authority Board of Directors.
Councilmembers nominated Mayor Andreatta and Councilmember Karleskint. Councilmember Joiner nominated as the alternate.
Mayor Andreatta asked for a motion to approve.
Councilmember Silhi motioned approval of RESOLUTION 2022-256 10.B item 2 and the motion was seconded by Councilmember Karleskint. By the following Vote (Approved): Silhi – Aye, Karleskint Aye, Joiner– Aye, Lauritsen – Aye, Mayor Andreatta – Aye.
7. PUBLIC COMMENT ON NON-AGENDA ITEMS
1. Darla Gutierrez, a Lincoln resident, expressed concern with increased speeding on Third and First Streets. Physical pictures were provided to the City Council and City staff, made a part of these minutes by mention thereof.
City Manager Sean Scully, thanked Ms. Gutierrez for voicing her concerns and that he would set up a separate meeting to discuss further.
2. Byron Chapman, a Lincoln resident, expressed concern for the increase in speeding vehicles. Mr.
Chapman thanked Council for including invocations.
3. Melanie Borchardt, a Lincoln resident, gave kudos to staff for presentations. Ms. Borchardt, stated that for the record, there have been formal complaints filed against Planning Commissioner Bill Lions and Dan Cross. Ms. Borchardt requested an update on the complaints.
8. CONSENT
Mayor Andreatta asked if any members of the City Council or public would like to pull any items from the Consent agenda. Councilmembers did not pull any items from the Consent agenda.
Byron Chapman, a Lincoln resident, asked to pull item 8.I and 8.J from the consent agenda.
Mayor Andreatta called for a motion of the remainder of the Consent agenda items. Councilmember Silhi motioned approval of the items and the motion was seconded by Councilmember Karleskint, By the following Vote (Approved): Silhi – Aye, Lauritsen – Aye, Karleskint – Aye, and Mayor Andreatta – Aye.
The items approved were:
8.A.
Approval of Minutes of October 25, 2022 Regular City Council meeting.
8.B.
Adopt PROCLAMATION 2022-06 designating November 26, 2022 as "Small Business Saturday".
8.C. Adopt PROCLAMATION 2022-07 designating November as "Global Entrepreneurship Month".
8.D.
Adopt RESOLUTION 2022-245 authorizing the City of Lincoln's application submittal for the FY 2022-2023 Beverage Container Recycling City/County Payment Program and authorize the City Manager to execute all necessary grant documents on behalf of the City.
8.E. Adopt RESOLUTION 2022-246 approving the plans and technical specifications and authorize staff to proceed with the bidding process for the Construction of Joiner Parkway Road Rehabilitation Phase 2
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
November 8, 2022
Project, Capital Improvement Project (CIP 298), contingent on the receipt of Notice to Proceed from Caltrans.
8.F. Adopt RESOLUTION 2022-247 accepting the Twelve Bridges Village 25 Subdivision Improvements as complete and authorize the City Clerk to file the Notice of Completion with the Placer County Recorder.
8.G.
Adopt RESOLUTION 2022-248 authorizing the City Manager to approve a budget augmentation of $12,000 from Fund 731 for CIP V229 and a purchase order for $812,000 to procure two residential garbage collection trucks for use by the Solid Waste Division of Public Works.
8.H. Adopt RESOLUTION 2022-249 approving the Venture Drive Parcel Map to subdivide 1401 Aviation Boulevard into two parcels, and authorizing the City Clerk to sign the Clerk’s Statement and record the Parcel Map.
The Venture Drive Parcel Map does not require frontage improvements; therefore, this Parcel Map will have no fiscal impact on public resources.
8.K. Adopt two resolutions:
RESOLUTION 2022-252: (1a) approving the Improvement Plans for Twelve Bridges Village 3A; (1b) approving Twelve Bridges Village 3 Phase A Final Map and authorizing the City Manager to execute the Subdivision Improvement Agreement; and (1c) authorizing the City Clerk to sign the Clerk’s Statement and record the Final Map and Subdivision Improvement Agreement; and
RESOLUTION 2022-253: (2a) approving the Improvement Plans for Twelve Bridges Village 3B; (2b) approving Twelve Bridges Village 3 Phase B Final Map and authorizing the City Manager to execute the Subdivision Improvement Agreement; and (2c) authorizing the City Clerk to sign the Clerk’s Statement and record the Final Map and Subdivision Improvement Agreement. (Lindy Childers) The City will be responsible for the maintenance of water and sewer infrastructure, within the private streets, in addition to the maintenance of street lighting along Bella Breeze Dr. and Blair Bridge Road, that will be funded by the CFD 2018-1 (Maintenance Services), Tax Zone 18. The Twelve Bridges Village 3 project has also annexed to the CFD 2018-2 (Public Services), Tax Zone 8, to mitigate the impact to Lincoln’s public services.
8.L. Adopt RESOLUTION 2022-254 approving the Procurement Card Policy.
ITEMS PULLED FROM THE CONSENT AGENDA
8.I. Adopt RESOLUTION 2022-250 authorizing a budget augmentation of $21,514 from the available unencumbered Fund 100 – General Fund to CIP 605 McBean Park Stadium Bleacher Replacement Project and authorize the City Manager to execute a contract for construction with PBM Construction, Inc. for $128,649 and authorize the City Engineer to approve change orders not to exceed $12,864
1. Byron Chapman, a Lincoln resident, spoke in opposition of RESOLUTION 2022-250 Mayor Andreatta called for a motion.
Councilmember Silhi motioned approval of RESOLUTION 2022-250 8.I and the motion was seconded by Councilmember Joiner. By the following Vote (Approved): Silhi – Aye, Joiner- Aye, Karleskint – Aye, Silhi – Aye, Lauritsen – Aye, Mayor Andreatta – Aye.
Councilmember Joiner recused himself from item 8.J at 7:54 p.m., as the Joiner Trust owns property within 400 feet of the development.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
November 8, 2022
8.J. Adopt RESOLUTION 2022-251 approving the Magnolia Village Final Map and authorizing the City Manager to execute the Subdivision Improvement Agreement and authorizing the City Clerk to sign the Clerk’s Statement and record the Final Map and Subdivision Improvement Agreement. (Lindy Childers) The City will be responsible for the maintenance of water and sewer infrastructure, within the private streets and new street lighting along East Joiner Parkway and Third Street, that will be funded by the CFD 2018-1 (Maintenance Services), Tax Zone 18. The Magnolia Village project has also annexed to the CFD 2018-2 (Public Services), Tax Zone 1, to mitigate the impact to Lincoln’s public services.
Mayor Andreatta called for a motion.
Councilmember Karleskint motioned approval of RESOLUTION 2022-251 8.J and the motion was
seconded by Councilmember Lauritsen. By the following Vote (Approved): Silhi – Aye, Karleskint – Aye, Silhi – Aye, Lauritsen – Aye, Mayor Andreatta – Aye, Joiner- Recused.
Councilmember Joiner returned at 7:57 p.m.
9. PUBLIC HEARINGS
1. 9.A. Conduct a Public Hearing; and
2. Waive full reading and introduce ORDINANCE 1056B by title and number only, adopting the 2022 California Green Code, Administrative, Building, Fire, Plumbing, Mechanical, Electrical, Energy, Residential, Existing Building Code, and related Construction Codes (Lincoln Municipal Code Title 15 - Building and Construction) as applicable to all construction within the City of Lincoln, with a local amendment adding section 15.04.030 of the Lincoln Municipal code adopting the 2021 International Swimming Pool and Spa Code.
Chief Building Official Will Foote, provided a presentation apart of these minutes by a mention thereof.
Councilmember discussed ensued. The ordinance will provide clarity on process and fee schedule.
City Manager Sean Scully, stated that Chief Building Official, Will Foote, was one of two delegates from California that attended the International Building Code Conference.
Mayor Andreatta called for a motion.
Councilmember Joiner motioned approval of ORDINANCE 1056B and the motion was seconded by Councilmember Karleskint. By the following Vote (Approved): Joiner- Aye, Karleskint – Aye, Silhi – Aye, Lauritsen – Aye, Mayor Andreatta – Aye ORDINANCE 1056B
10. GENERAL BUSINESS
10.A. Adopt RESOLUTION 2022-255 authorizing the issuance of the City of Lincoln Community Facilities District No. 2019-1 (Independence at Lincoln) Special Tax Bonds, Series 2022 in a principal amount not to exceed fifteen million dollars ($15,000,000) and approving certain documents and taking certain other actions in connection therewith.
Chief Finance Director Nita Wracker, introduced the City’s Bond and Underwriting Counsel Brian Forbath who provided a presentation made a part of these minutes by mention thereof.
Mayor Andreatta asked if there was any public comment in Council chambers or on Zoom.
Hearing none, Mayor Andreatta called for a motion.
Councilmember Joiner motioned approval of
RESOLUTION 2022-255 10.A and the motion was
P
age 6 of 6
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
November 8, 2022
seconded by Councilmember Karleskint. By the following Vote (Approved): Joiner- Absent, Karleskint – Aye, Silhi – Aye, Lauritsen – Aye, Mayor Andreatta – Aye.
10. C. WORKSHOP - 2-year Mayoral Rotation.
Cit
y Clerk Gwen Scanlon, provided a presentation made a part of these minutes by mention thereof.
A lengthy Councilmember discussion ensued.
Mayor Andreatta asked if there was any public comment in Council chambers or on Zoom.
1. Lena
Lebowski, spoke via Zoom. Ms. Lebowski, who resides in District 4, in the City of Lincoln, spoke in f
avor of two-year mayoral rotation.
2. B
yron Chapman, a Lincoln resident, spoke in favor of the two-year mayoral rotation.
Cit
y Attorney Kristine Mollenkopf, reminded City council that there was no action, ordinance or resolution to vote on or approve.
10.D W
ORKSHOP - Homeless Wet Weather.
Cit
y Attorney Kristine Mollenkopf, provided background on the current issues facing the homeless camp residing alongside Auburn Ravine. Along with City staff, the Lincoln Police Department, and Mona Bass the ‘Adopt-a-Creek’ Director, all parties have been conceptualizing a creative plan to address the impact winter weather will have on our watershed and homeless.
C
ity Manager Sean Scully, highlighted the importance that the idea is a proposed solution and the City would pivot in a different direction if the proposed project does not work.
A
dopt-a-Creek Director Mona Bass, added that the concept in theory, is to work with those individuals, and cooperatively find them a place, at a higher elevation, so that they are not subject to the rising waters.
Additionally, the City could come up with an encroachment permit that they would agree to, that says they are restricting themselves to a ten by ten space.
Councilmember discussion ensued.
C
hief Public Safety Matt Alves, expressed concern with limitations.
11. CO
UNCIL INITIATED BUSINESS- None
12. IN
FORMATION ITEMS
M
ayor Andreatta expressed kudos to the new Firefighter pinning ceremony that was held on November 8, 2022.
13. ADJOURNMENT- Mayor Andretta adjourned the meeting at approx. 9:20 p.m.
Submitted by:
Gwen Scanlon, City Clerk
Placer County
2050 Regional Transportation Plan &
Unmet Transit Needs Assessment
Lincoln City Council Meeting
November 8, 2022
What is the RTP?
− 25- year plan
− Updated every 5 years
− Outlines
− Goals, policies, objectives for
funding and projects
− Responds to near-term change
− Connects many planning efforts
− Informed by public outreach and
Board direction
RTP vs. MTP/SCS (SACOG)
RTP & MTP Similarities
- 20-Year Plan
- Policy Statements
- Near & Long Term Projects
- Population, Jobs, Household Forecasts
- Reasonably Foreseeable Revenue
- Financially Constrained Project List
MTP/SCS Differences:
- Multi-County Plan
- Land Use Type & Pattern
- Federal Clean Air Act
- SB 375 Sustainable Communities
Strategy
Anticipated Changes Since Last RTP
Projected Growth (2050)
− Placer County
− Over 500,000 total population
− Over 63,000 new jobs
− Over 55,000 new homes
− 2/3 of Placer residents commute
to outside of Placer County
− 33% work in Sacramento County
− How will this change post-COVID?
Look Back at the Last RTP (2040) - Expenditures
Look Back at the Last RTP (2040) - Projects
Projects Progressing
Through Delivery Phases
− Highway 65 Widening
(Roseville/Rocklin to
Lincoln)
Completed
− Lincoln Blvd Streetscape
Improvements Phase 2
Highway 65 Widening
Lincoln Blvd Streetscape
Improvements
2050 RTP Work Plan – Project Considerations
− Project Lists from last adopted RTP
(2040) will be updated based on:
− Revised cost estimates, new project
phases, changing priorities, and
additional local agency information
− Projects will be informed by public
outreach and Board direction
− Craft a set of goals and objectives
Projects
Revenue Assumptions
− Many similar federal, state, and local funding
programs
− Infrastructure Investment and Jobs Act (IIJA) - 2021
− 30% more funding compared to FAST Act
− New funding discretionary and competitive funding
− Matching funds may be as high as 50%
− Transportation sales tax revenues considered
New IIJA
Surface
Transportation
Funds Available
Goals & Consideration Issues
− Re-examine RTP Goals & Objectives
− Climate Action Plan for Transportation Infrastructure (CAPTI) – 2021 − Climate change adaptation
− Project benefits tied with health, safety, and equity − SB 743 – VMT Analysis
− Attaining GHG Reduction Targets 19% per capita
− Incorporate equity & environmental justice into the RTP − Performance metrics to evaluate plan
1st Round Community Engagement
- PCTPA is coming to an event near you!
- Council Presentations & Pop-Up Events in
each City/Town
- Three virtual webinars in December
- Online survey – available at
www.pctpa.net/rtp2050
2050 RTP Schedule
2022 2023 2024
1st Round
Community
Engagement
Submit
Project
Lists
Draft
Policy
Element
Develop
Financial
Forecasts
Preferred
Project
List
2nd Round
Community
Engagement
(with SACOG)
Final
Project
List
Model and
Test
Performance
Measures
Update
Action
Element and
Financial
Element
Draft RTP &
EIR
3rd Round
Community
Engagement
Draft Document
Comment &
Review/Public
Hearings
Prepare EIR
Final 2050
RTP & EIR
Adoption
*Subject to change based on coordination with SACOG
Unmet Transit Needs Assessment
Statewide Diesel
Fuel Tax
¼ Cent General Sales Tax
Local Transportation Funds
(LTF)
State Transit Assistance (STA)
Funds
2022 Unmet
Transit Needs
Assessment
Unmet Transit Needs Assessment
− STA Funds: can only be used on transit projects (e.g., operations, capital, administrative support)
− LTF: intended for transit, but can be used for other purposes such as streets and road maintenance
− Unmet Transit Needs (UTN) Assessment must be done annually − No unmet transit needs that are reasonable to meet
2022 Unmet
Transit Needs
Assessment
Unmet Transit Needs Criteria
Unmet?
Reasonable to
Meet?
Not met by existing transit system or services
Required for compliance with Americans with Disabilities Act (ADA) Meets required farebox revenue recovery standards
Can be paid for with existing funds and is reasonable use of funding Is strongly and broadly supported by the community
Is consistent with Regional Transportation Plan and applicable Short Range Transit Plan
AND
AND
AND
AND/OR
2022 Unmet
Transit Needs
Assessment
Previous Unmet Transit Needs
2015
2022 Unmet
Transit Needs
Assessment
2015 2018 2019
Bus Pass
Subsidy for
Social Service
Organizations
Year-Round
Highway 267
Service
Expanded
Service Hours
for Lincoln
Dial-A-Ride
Rocklin/Lincoln
Cross-Jurisdictional
Service for ADA
Eligible Riders
UTN Assessment Schedule
2022 Unmet
Transit Needs
Assessment
October 1st
Survey
available at:
pctpa.net/utn
October 1st – November 18th
UTN outreach/engagement
October
Adopt findings at
PCTPA Board
meeting
November
December
January
February
November – January
Evaluate potential unmet transit needs for
reasonableness to meet with stakeholders
How to Provide UTN Comments/Input
− Take the survey available at: pctpa.net/utn
− Provide comments tonight
− Submit to written form to PCTPA directly
(forms available at www.pctpa.net/utn)
− E-mail Mike Costa at [email protected] or
call (530) 823-4029
− Spanish and Tagalog surveys available
2022 Unmet
Transit Needs
Assessment
Thank you!
Questions?
Cory Peterson, PTP
Senior Transportation Planner
(530) 823-4032
[email protected]
Mike Costa
Senior Transportation Planner
(530) 823-4029
[email protected]
2022 Unmet Transit
Needs Assessment
LiSWA & JPA
CONSIDERATION
The History & The Issues
March 2012 – Board of Supervisors accepted the City’s offer to construct, own, and operate a regional pump station and pipeline from North Auburn to the Lincoln WWTRF , increase the capacity of the WWTRF to accommodate sewer flows from Sewer Maintenance District 1 (SMD 1), and decommission the wastewater treatment plant that served SMD 1.
October 2013 – City of Lincoln and Placer County executed the Construction, Operations, and Joint Exercise of Powers Agreement (COJA) under which the City constructs and then provides wastewater treatment for SMD 1 as well as operation and maintenance (O&M) of the SMD 1 pump station and regional pipeline for a fixed charge per EDU.
May 2016 - the improvements were completed and the City began treating wastewater from SMD 1.
The History & The Issues Continued
Wastewater Treatment is currently combined with collections for Lincoln residents The City bills the County for treatment, operations and maintenance of their Sewer Maintenance District 1 (SMD-1) facility
Fixed O&M charges to the County did not cover City costs which is unsustainable long term
Repair and Rehabilitation costs were additive above the O&M charges, making budgeting difficult
A structural deficit exists within the Lincoln wastewater enterprise fund Lincoln sewer/wastewater rates have not increased in a decade The Wastewater Treatment Plant (Plant) is reaching capacity limits and expansion is needed
Additional funds are needed to pay for the expansion
JPA
As part of the ongoing effort to resolve core COJA issues, a new model (driven by the need to expand the plant) is discussed.
An independent agency with the sole purpose of operating & managing the wastewater treatment plant.
The Board of the JPA is proposed to be comprised of 2 members from governing bodies of the City and County.
The anticipated growth in the service area of the Plant is an important reason to form a JPA.
The JPA would be responsible for future rate increases. The JPA would be responsible for any future or potential liabilities and regulatory compliance.
New Unified Sustainable Principles
• All for One, One for All
o No City EDUs vs County EDUs; all EDUs are
same regardless of jurisdictional boundaries
• Align Interests
o Good for one is good for the other/bad for one is
bad for the other
• Shared Obligations and Responsibilities
o In the existing and future system for all ratepayers
Process of formation
• Develop business points
• Engage 2x2 and TAG
• Engage outside counsel that specializes in JPA formation • Consideration of approval by Council and Board of Sups • Select interim General Manager and Finance Director
• Establish JPA and transfer assets to the JPA
• Establish charges and construct expansion
Proposed Business Points
• Own and operate the regional wastewater facilities
• Employ agents and employees
• Establish charges, or other costs in connection with the regional facilities • Charge the County and the City on a proportionate basis based on the number of respective equivalent dwelling units (EDUs) within each jurisdiction
• Develop and adopt policies and procedures
• Be governed by the JPA Board comprised of two County Board of Supervisors and two City Council members
• Have the authority to change the Agreement upon a unanimous vote from the JPA Board
Current WWTF Capacity
Treatment plant is nearing capacity
Remaining capacity is projected to handle existing and pre-sold units Expansion is needed to handle future development
Current reserves will not fund the expansion
The Expansion
Estimated cost $59M
May be completed all at once or as part of 2 phases.
Bond debt of between $35-43M to be used for phase 1 (depending on project details, see below)
Additional capacity from both phases will serve approximately 10,000 EDU’s Construction of phase 1 to begin as soon as possible
Construction of phase 2 should begin by year 2027
• If Project A is constructed first, estimated cost ~$43M –provides ~8,000 EDUs of capacity
• If Project B is constructed first, estimated cost ~$35M – provides ~4,000 EDUs of capacity
• Estimated total cost to construct in one project ~$59M The Expansion Continued
• Construct Project A and Project B together
o Pro: Overall lower total cost
o Con: Higher treatment charge for current
customers
• Construct only Project A or only Project B
o Pro: Lower initial cost and treatment charge
o Pro: Future connection fees fund second
project
o Con: Higher overall cost due to inflation on
the second project
JPA Financial Proforma
Financial Stats for year One
OPERATING EXPENSES $7.8M
Operations expenses $7.3M
R&R Expenses $0.5M
DEBT EXPENSES $3.2M
Assumes phase 1 cost of
approximately $43M with 30 year
financing at 5.5%
CAPITAL EXPENSES $43.3M
$42.6M for phase 1 expansion
$245K for IT equipment
$235K for SCADA control upgrades
$180K for fleet equipment
Estimated Debt and Rates
Years 30 yr @ 3.75% 30 yr @ 4% 30 yr @ 4.5% 30 yr @ 5.5% 40 yr @5.5% 40 yr @6% FYE 2023 2,566,758 2,651,380 2,825,065 3,191,906 2,871,160 3,075,093 Rate $ 32.78 $ 33.51 $ 33.51 $ 34.56 $ 33.65 $ 34.22 The JPA will need to issue bond and acquire debt to fund phase 1 This demonstrates the payment for the first year of the new debt based on different terms and interest rates The rate could be reflected of the debt payment
Anticipated treatment charge breakdown per EDU @ 5.5%
O&M Expenses ~$20.73
R&R ~$1.42
Debt Related Expenses ~$12.41
Total Treatment Charge ~$34.56
Anticipated total rate increase of 105% over current (treatment and collections) Connection fees and Expansion – Phase 2
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
EXPANSION FUND
BEGINNING BALANCE $0 $1,500,000 $5,500,000 $9,406,700 $13,592,450 $1,668,675 $5,296,325 Connection revenues by
year $1,500,000 $4,000,000 $3,906,700 $4,185,750 $4,046,225 $3,627,650 $3,627,650 Cost of Expansion – Phase
2 0 0 0 0($15,970,000) 0 0
EXPANSION FUND
ENDING BALANCE $1,500,000 $5,500,000 $9,406,700 $13,592,450 $1,668,675 $5,296,325 $8,923,975 Phase 2 would be paid for by fees collected from new connections Potential Advantages
Charges are set adequately to be sustainable into the future o Charges incorporate Rehabilitation and Repair projects o Charges are set to fund first expansion project and future expansion projects will be funded through connection fees o After expansion project is paid for , charges will be stabilized
Align the County and City to establish a sustainable authority and stabilize rates into the future
Create specialized JPA that’s sole focus is efficient service delivery of treatment.
Potential for more transparency and oversight.
Create a mechanism to (theoretically) resolve conflicts with the County as partners versus customer/vendor.
Liability and transfer of risk to third party.
Potential Drawbacks
Concerns about potential disparate goals within the JPA format depending on jurisdiction.
Perception that Lincoln is “giving away” an asset.
Placer County will have less and less of a percentage share of the plant as Lincoln grows over time, concerns may be raised over equal voting power by County.
Navigation of complexity in establishing true equity given a vast difference in land use and billing structure.
Some overhead costs will now need to be absorbed directly by the collections system that are current being covered under treatment. Perception that additional “government” is being created that may cost slightly more than current operational expenditures.
Recommendation
1. Council to consider approval of the attached resolution which approves the JPA agreement for the formation of LiSWA.
Next Steps (If Approved)
1st LiSWA Board of Directors meeting on Thursday 10:30AM in Lincoln CC Chambers Board of Director consideration of GM, Legal, and Finance functions. Asset transfer process begins.
Alternatives:
Do not approve the resolution and provide staff alternative direction for a path forward.
Continue to future meeting date.
Questions???
City of Lincoln Community
Facilities District No. 2019-1
(Independence at Lincoln)
Special Tax Bonds, Series 2022
November 8, 2022
Presented by:
Brian Forbath, Esq.
Stradling Yocca Carlson & Rauth
(949) 725-4193
[email protected]
Independence at Lincoln Project
Stradling Yocca Carlson & Rauth, P.C. 2
Independence at Lincoln
• 194-acre Master planned residential community
• 591 single family low and median density homes in 6 villages • Lewis Land Developers LLC is the Master Developer
• Lewis sold all of its lots to Richmond America, Tri Pointe Homes and D.R.
Horton to develop into single family homes
Independence at Lincoln
• As of September 16, 2022 which was the date of value of the Appraisal • Home sales and closings continue to occur
Tax Zone
Homes Closed to
Individual
Homeowners
Homes Under
Construction/Completed
Homes
Finished
Lots Totals
D.R. Horton 107 74 14 195
Richmond American 40 54 28 122
Tri Pointe 0 21 253 274
Total Residential Units 147 149 295 591
CFD 2019-1
• CFD was formed in 2019 at request of Lewis
• City and Lewis authorized the issuance of Bonds in the amount of $30,000,000
• This will be the first of two expected Bond sales
• Resolution Authorizes the issuance of Bonds not to exceed $15,000,000 • Bonds are sized based off special taxes from property that had a building permit as of September 16, 2022.
• The second series of Bonds is expected to be issued closer to buildout of the entire CFD.
Stradling Yocca Carlson & Rauth, P.C. 5
Resolution of Issuance
• Resolution of Issuance Approves:
• Bond Indenture
• Bond Purchase Agreement
• Acquisition, Construction and Funding Agreement
• Continuing Disclosure Agreement
• Preliminary Official Statement
Stradling Yocca Carlson & Rauth, P.C. 6
City Team
Stradling Yocca Carlson & Rauth Bond and Disclosure Counsel PFM Financial Advisors Municipal Advisor
NBS Special Tax Consultant
Integra Realty Resources Appraiser
U.S. Bank Trust Company Trustee
Piper Sandler Underwriter
Stradling Yocca Carlson & Rauth, P.C. 7
• All fees and costs are paid from the proceeds of the Bonds Schedule
11/8/2022 Council Approval
Week of 11/12/2022 Price Bonds
Week of 11/28/2022 Close Bonds
Stradling Yocca Carlson & Rauth, P.C. 8
MAYORAL
2-YR
ROTATION &
APPOINTMENT PROCESS
Lincoln City Council, November 8, 2022
10C
BACKGROUND
• District elections require modification to current language • Current Rotation Language:
• Incumbent with 2 years of service on Council
• Newly elected placed at bottom of rotation
• More than 2 newly elected, order by number of votes, still placed below incumbents
• Previous mayor goes before newly elected and below
other incumbents
• 4-5 newly elected those with shorter terms at top of
rotation list above longer terms
• Multiple appointments rank is determined by coin toss
DISCUSSION
• Two Year Rotation Considerations:
• City Council to approve selections/appointments
• Election results (weighted % from district)
• Built-in hook – supermajority (4-1) can oust Mayor/Vice • 2-year term limit for Mayor/Vice
• Good standing
• Initial selection of Mayor/Vice is random to start cycle
APPOINTMENT OPTIONS
Option Factor Pro Con
A Current w/Vote % Easy Transition Prevent others from serving B Selection /
Nomination Easy Transition Could be biased
C By District Unbiased Could serve during 1st year
D Random Selection Unbiased Could serve during 1st year E Highest Vote % Unbiased Prevent others from serving
F Longest Service Experience Prevent others from serving Questions?