MINUTES
CITY OF LINCOLN CITY COUNCIL,
PUBLIC FINANCE AUTHORITY
and REDEVELOPMENT SUCCESSOR AGENCY
Regular Meeting
July 9, 2024, 2024
OPEN
SESSION MEETING
The meeting was conducted in person at City Hall, 600 6th Street, Lincoln, CA, and virtually on Zoom with a Live Stream on the City of Lincoln YouTube Channel and WAVE Channel 18.
1. CA
LL TO ORDER by Mayor Karleskint at 6:00 PM.
2. RO
LL CALL: Councilmembers present: Holly Andreatta
Ben Brown
Paul Joiner
Mayor Dan Karleskint
Councilmember absent: William Lauritsen
Roll Call: 4 members present, 1 member absent, 0 members excused.
Staff members present: Nita Wracker, Assistant City Manager Kristine Mollenkopf, City Attorney
Matt Alves, Public Safety Chief
Jennifer Brown, Chief Innovation and Technology Officer Vin Cay, City Engineer
Erin Frye, Economic Development & Communications
Leslie Tetley Jodrey, Deputy City Clerk
Matt Medill, Public Works Director
Gwen Scanlon, City Clerk
Christian Svensk, Community Development Director
Var
ious City employees, consultants, and members of the public were also present in person and via teleconference.
3. REPO
RT FROM CLOSED SESSION – Kristine Mollenkopf, City Attorney, stated there is no reportable action, as a closed session was not held.
4. PLED
GE OF ALLEGIANCE – Led by Jennifer Brown, Chief Innovation and Technology Officer.
5. AG
ENDA MODIFICATIONS – None.
6. PRESEN
TATIONS- None.
7. PUBL
IC COMMENT ON NON-AGENDA ITEMS WITHIN THE SUBJECT MATTER
JURISDICTION OF THE COUNCIL
1.)
Frank Neves, a Lincoln resident, expressed concern with the intersection at Hwy.193 and Oak Tree Lane, as the intersection is dangerous would like to see a stoplight.
2.)
Fran Neves, a Lincoln resident, expressed concern with visibility on Oak Tree Lane and Hwy. 193, and asked if the cardboard recycling containers currently in the Twelve Bridges Library parking lot would be moved.
Ni
ta Wracker, Assistant City Manager, stated that there is a plan to move the cardboard recycle area to a different location.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
Vin Cay, City Engineer, stated he will work with the project manager to review timelines, any modifications that can be made to address speeding through the construction zone.
Kristine Mollenkopf, City Attorney, suggested using the movable notification signs to address traffic concerns.
8. CONSENT
Mayor Karleskint asked if any members of the City Council or staff would like to pull any items from the consent agenda.
Hearing none, Mayor Karleskint called for a motion of the remainder of the consent agenda.
Councilmember Brown motioned approval and the motion was seconded by Councilmember Andreatta. By the following Vote (Approved): Brown- Aye, Andreatta -Aye, Joiner – Aye, Mayor Karleskint- Aye and Lauritsen - Absent. The items approved were:
8.A Approval of Minutes of June 25, 2024 Regular City Council meeting.
8.B. Adopt RESOLUTION 2024-143 authorizing the City Manager to execute a contract for construction with Level 1 Roofing for the Base Bid amount of $95,724 for CIP 671 – Plaza Building Roof and authorize the City Engineer to approve change orders up to $44,276.
8.C. Adopt RESOLUTION 2024-144 authorizing the City Manager to execute a contract for construction with Level 1 Roofing in the amount of $208,058 for CIP 677 – Community Center Roof and authorize the City Engineer to approve change orders up to $69,934.
8.D. Adopt RESOLUTION 2024-145 authorizing the City Manager to execute a contract for construction with Level 1 Roofing in the amount of $93,870 for CIP 673 – Corp Yard Gutter Replacement and authorize the City Engineer to approve change orders up to $31,130.
8.E. Adopt RESOLUTION 2024-146 authorizing the allocation of $49,757 from the unencumbered balance of Fund 620 to CIP 623 – McBean Park Roof Repairs, and authorizing the City Manager to execute a contract for construction with Rua and Son Mechanical in the amount of $112,833 for CIP 623 – McBean Park Roof Repairs and authorize the City Engineer to approve change orders up to $16,924.
8. F. Adopt RESOLUTION 2024-147 Authorizing the City Manager to Enter into a Master Services Agreement with Hinderliter de Llamas and Associates for the Provision of Sales Tax Audit and Analysis Services Through June 30, 2029 in an Amount Not to Exceed $125,000.00 in Fund 100 and an
Option To Extend For Three Additional Years.
9. P
UBLIC HEARINGS
9 .A. CONTINUED DATE CERTAIN TO AUGUST 27, 2024 CITY COUNCIL MEETING:
(1) C
ouncil conduct a public hearing on the appeal by AT&T; (2) Consider Adoption of a RESOLUTION denying the appeal and uphold the Planning Commission’s denial of AT&T M
obility’s Conditional Use Permit (CUP) to colocate their facilities at an existing Verizon Wireless facility and determine the project to be exempt from environmental review pursuant to CEQA Guidelines Section 15270(a) because CEQA does not apply to projects which a public agency disapproves. The project is located at 170 Flocchini Circle, APN: 008-240-052. Appellant: Carl Jones (AT&T Mobility Agent); Property Owner: Roznowski Investments LP (Gregory & Babette) c/ o
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
Verizon Wireless. (PLN24-00024)
9.B. (1) Conduct a Public Hearing; and (2) Adopt RESOLUTION 2024-148 approving changes to the City of Lincoln Master Fee Schedule for User and Regulatory Fees.
Nita Wracker, Assistant City Manager, stated that the item before Council is an annual item which includes incremental fee changes. In order to ensure the user and regulatory fees continue to provide cost recovery for services provided by the City this update includes adjustments equal to the annual average increase in CPI-U (Consumer Price Index All Urban Consumers Index San Francisco-Oakland-Hayward) of 3.67%. Staff will be undertaking a complete study of master fee schedule and the cost allocation in the next fiscal year.
Mayor Karleskint opened and closed the public hearing at 6:16 p.m with no comments and called for a motion.
Counc
ilmember Joiner motioned approval of RESOLUTION 2024- 148 and the motion was seconded by Councilmember Andreatta. By the following Vote (Approved): Joiner- Aye, Andreatta -Aye, Brown – Aye, Mayor Karleskint- Aye and Lauritsen - Absent.
9. C. (1) Conduct a public hearing; (2) Determine that the proposed amendments qualify for a statutory exemption under Section 21080.17 of the California Public Resource Code (PRC), and thereby is exempt from further environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15282(h) [CEQA does not apply to the adoption of an ordinance by a City to implement the provisions of Sections 65852.2 and 65852.22 of the California Government Code (State ADU Laws)]; and (3) Adopt ORDINANCE 1080B amending Lincoln Municipal Code Chapter 18.37 – Second Dwelling Residential Units and related Articles of Title 18 – Zoning to comply with State Laws regarding Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) in the City of Lincoln.
Ef
ren Sanchez, Senior Planner Community Development, presented the item which is to adopt an ordinance to amend the municipal code to comply with State Laws. Previously known as secondary dwelling unit, granny flat, in-law unit and or a backyard cottage, accessory dwelling units (ADU) consist of three types including detached, attached and converted. Additionally, the updates to the ordinance will address definitions, reduces the maximum ADU’s and junior accessory dwelling units (JADU’s) admin review time amongst other changes that can be reviewed in the PowerPoint presentation made apart of these minutes by a mention thereof.
Ma
yor Karleskint asked if anyone from Council had any questions. Councilmember discussion ensued. Concluding council discussion, Mayor Karleskint opened and closed the public hearing at 6:25 p.m. with no comments and called for a motion.
Counc
ilmember Andreatta motioned approval of ORDINANCE 1080B and the motion was seconded by Councilmember Brown. By the following Vote (Approved): Andreatta -Aye, Brown- Aye, Joiner-Aye, Mayor Karleskint- Aye and Lauritsen - Absent.
9. D. (1) Conduct a public hearing; and (2) Adopt RESOLUTION 2024-149 authorizing the execution and delivery of an equipment lease/purchase agreement and an escrow and account control agreement with Banc of America Public Capital Corp and authorizing certain actions and making certain findings in connection therewith.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
Nita Wracker, Assistant City Manager, briefed Council on the item, stating that at the May 28th City Council meeting, Council approved to pursue a bank loan and or private placement in order to move forward with the project. In consultation with PFM Financial Advisors LLC, the staff reviewed five financial proposals and selected the proposal submitted by Banc of America Public Capital Corp. Ms. Wracker, then introduced Jaime Trejo, from PFM Financial Advisors, who provided additional information regarding why Banc of America was chosen. The proposal included the lowest rate option, does not include additional fees, allows for a partial prepayment and lastly, the City will have the option to prepay its obligations under the agreement in whole only with a prepayment premium.
Mayor Karleskint asked if any members of the Council had any questions. Mayor Karleskint opened and closed the public hearing at 6:39 p.m. with no comments. Councilmember Joiner thanked City staff and Jaime Trejo for their efforts. Hearing no further comments, Mayor Karleskint called for a motion.
Councilmember Brown motioned approval of RESOLUTION 2024- 149 and the motion was seconded by Councilmember Andreatta. By the following Vote (Approved): Brown – Aye, Andreatta -Aye, Joiner-Aye, Mayor Karleskint- Aye and Lauritsen – Absent.
10. GENERAL BUSINESS
10.A. Adopt RESOLUTION 2024-150 authorizing the City Manager to execute Work Order #1, Work Order #2, and the Operations and Maintenance Agreement with SitelogIQ, Inc.
Matt Medill, Public Works Director, recapped project locations, timelines and recommendations for project execution of two works orders and the maintenance agreement which includes a performance guarantee.
Matt Medill, Public Works Director, gave a brief staff report and powerpoint presentation, made a part of these minutes by mention thereof. Mayor Karleskint asked Council if they had any questions or concerns. Councilmember Brown asked why there is a ten-year maximum allowable term plan.
Matt Medill, Public Works Director, asked Jessica Ritter, with SitelogIQ, Inc, to provide more information. Ms. Ritter stated that insurance providers look at an extended term as a liability.
Mayor Karleskint asked if anyone from the public would like to speak on the item.
Hearing no further comment, Mayor Karleskint thanked City Staff for their hard work and dedication. Hearing no further comments, Mayor Karleskint called for a motion.
Councilmember Andreatta motioned approval of RESOLUTION 2024- 150 and the motion was seconded by Councilmember Brown By the following Vote (Approved): Andreatta -Aye, Brown – Aye, Joiner- Aye,Mayor Karleskint- Aye and Lauritsen – Absent.
10.B. Receive a presentation and information on the City’s P ension Unfunded Accrued Liability (UAL) and provide general direction to staff on the preferred method for addressing the UAL.
Nita Wracker, Assistant City Manager, stated that Roy Kim, with NHA Advisors, LLC, would be presenting an overview on the item that detailed the background on CalPERS costs, historical and projected CalPERS costs and how the City can explore various cost management strategies to proactively address rising pension costs.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
Nita Wracker, Assistant City Manager, thanked Mr. Kim for the presentation and added that the presentation was given to the Fiscal Investment and Oversight Committee to get their assessment and recommendation. The FIOC concurred with staff to recommend to Council that they consider and provide general direction to staff to open a pension reserve such as a section 115 trust.
Council discussion ensued.
Mayor Karleskint asked if anyone from the public had any comments or questions.
1.) Richard P earl, City Treasurer, stated that the proposal was reviewed by Fiscal and Investment Oversight Committee, which determined the proposal provides flexibility.
Mayor Karleskint confirmed staff should review both avenues and report back to Council upon the next Fiscal and Investment Oversight Committee meeting which will be held on July 17th at City Hall.
10.C
. Receive a Report on a Registration Program for Short Term Rentals within the City.
Nita
Wracker, Assistant City Manager, stated that staff wanted to bring fourth the proposed program that will require all short-term rental properties to register for a business license and comply with the Transient Occupancy Tax (TOT) requirements by remitting any owed taxes.
Additionally, the program will educate and inform property owners of short-term rentals to ensure they are aware of the City’s requirements, ensure that short-term rental operators comply with local regulations and contribute to fair business practices. Lastly, the program could lead to revenue generation which can be used to help fund City services.
Councilmember discussion ensued.
Ni
ta Wracker, Assistant City Manager, added, in addition to the objectives stated earlier, an internal focus group will be created with Code Enforcement and Community Development to discuss and develop a program. The focus group will return, at a much later date, with additional information and possible changes to the municipal code.
Cou
ncil agreed to move forward with the registration program.
Counci
lmember Joiner left Council Chambers at 7:29 p.m and came back at 7:30 p.m.
10.D
. Discuss, provide edits and consider Adoption of RESOLUTION 2024-151 approving the draft responses to the Placer County Grand Jury (PCGJ) 2023-2024 reports titled “Review of the 2023 Water Rate Increase” and “From Missiles to Meadows: Restoring Nature’s Balance”.
Kr
istine Mollenkopf, City Attorney, stated that the item is to review and give staff direction on any revisions to the letters that are required to respond to the Placer County Grand Jury’s findings. The Placer County Grand Jury annually reviews resident complaints and investigates issues raised by their own jury members. This year, the PCGJ investigated two separate areas which included the review of the water rate increase and the Titan Missile site. The Placer County Grand Jury found that the City was exceptionally transparent in their commination efforts. City staff has drafted a response stating that they agree with the 2023 Raftelis Water and Wastewater Study Report and by March 1, 2025, the Lincoln City Council will continue to support the ten-year water rate increase outlined in the Raftelis Water and Wastewater Study Report and lastly, beginning March 1, 2025, the Lincoln City Council will review the ten-year water rates plan annually at a public meeting.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
The second report relates to the Titan Missile Site located near Sun City. The Placer County Grand Jury made a number of findings which included the following; City of Lincoln does not have a dedicated Lincoln Titan 1-A Missile Site website, it is unclear how many residents outside of Sun City are aware of the Titan Missile Site, and that the Restoration Advisory Board coordinated by the United States Army Corps of Engineers meetings are not livestreamed or recorded and that the City Council report our quarterly on the efforts made by the Restoration Advisory Board (RAD).
Staff generally agrees with the recommendations, with the exception of response number four, which states that by September 1, 2024, the Lincoln City Council will appoint a city representative to attend quarterly Restoration Advisory Board meetings.
Mayor Karleskint stated he doesn’t have an issue with recommendation number four, but would like clarification on what “representative” means as the proposed response states that the representative is the Councilmember who resides in District 4. Mayor Karleskint stated that the City Council did not appoint Councilmember Lauritsen who resides in District 4; however, the City Council would like to appoint a City representative to attend the Restoration Advisory Board (RAD) quarterly meetings.
Kristine Mollenkopf, City Attorney, stated that it could be in fact a staff member. Councilmember Joiner stated that perhaps the response should state that the City Manager and or his designee would appoint a representative to the RAD board.
Kristine Mollenkopf, City Attorney, stated that staff can certainly make the revision, and will take no action on the current resolution 2024-151, and then will bring it back as a consent agenda item in August.
11. C
ITY MANAGER REPORTS – Nita Wracker, Assistant City Manager, gave kudos to staff on t
he fantastic 4th of July festivities.
12. COUNCIL INITIATED BUSINESS
1. ) Councilmember Andreatta stated that Joey Mitchell’s celebration of life will be held at Bayside church, in Granite Bay, on July 12th.
13. C
OMMITTEE REPORTS
1. ) Councilmember Joiner attended the SACOG meeting which was held at Beale Air Force Base. Members toured the base, discussed housing constraints and highway 65 safety concerns.
2. ) Councilmember Andreatta attend the recent Placer County Transportation Planning Agency (PTCPA) general business meeting.
15. IN
FORMATION ITEMS
1.) Councilmember Andreatta echoed the Assistant City Manager’s kudos for staff’s dedication in ensuring the 4th of July event was successful.
2.) Councilmember Joiner announced that the “Big Boy No.4014,” which is the world’s largest steam locomotive will be traveling through the region on Friday.
City Council, Public Finance Authority and
Redevelopment Successor Agency
Regular Meeting Minutes
July 9, 2024
16. ADJOURNMENT- Adjourned by Mayor Karleskint at 7:54 p.m.
Submitted by Gwen Scanlon, City Clerk
ADOPTION OF ADU ORDINANCE
CITY COUNCIL – JULY 9, 2024 1
Photo Credit: Casita Coalition
Item 9C
City Council
July 9, 2024
OVERVIEW
On April 17, 2024 – PC ADU Workshop
What is an ADU / JADU?
California Legislative History regarding ADUs
Revisions necessary to Lincoln Municipal Code to comply ADU Requirements incorporated in draft ordinance
On May 15th PC Hearing & Public Comments
Adopted PC Resolution 2024-13 recommending City Council adopt the draft ordinance.
CITY COUNCIL – JULY 9, 2024 2
WHAT IS AN ACCESSORY DWELLING UNIT (ADU)?
ADU is permanent, independent unit accessory to primary residence.
Has separate living, cooking, and bathroom facilities for one or more persons.
Previously known as secondary dwelling unit, granny flat, in-law unit, backyard cottage.
ADUs are allowed as either new construction or conversion of existing permitted space.
Constructed on any residential lot.
CITY COUNCIL – JULY 9, 2024 3
TYPES OF ADU s
Detached: Separate from primary
structure
Attached: Attached to primary
structure
Converted: conversion of garage,
bedroom, storage area, accessory
structure.
CITY COUNCIL – JULY 9, 2024 4
Photo Credit: Town of San Anselmo
JUNIOR ACCESSORY DWELLING UNIT ( JADU)
JADU is no more than 500 SF and contained
within single-family dwelling.
JADUs must include:
sleeping, eating, and cooking facilities (i.e. efficiency kitchen). They may share the bathroom with primary
residence.
Owner occupancy is required (via deed
restriction)
No parking spaces are required
CITY COUNCIL – JULY 9, 2024 5
SUMMARY OF ADU ORDINANCE
1. Name Change Secondary Dwelling Units now referred to as Accessory Dwelling Units (ADU) throughout Title 18 (Zoning).
2. Adds definitions to Title 18 to include: ADU, JADU, and other terminology.
3. Clarifies ADUs must be permitted in any residential or multifamily zone.
4. Reduces maximum ADU and JADU administrative review time to 60 days.
5. Fire Sprinklers – ADUs shall not be required to provide fire sprinklers if they were not required for the primary dwelling.
CITY COUNCIL – JULY 9, 2024 6
SUMMARY OF ADU ORDINANCE
6. Adds general requirements: siting, sizing of ADU, maximum number on parcel, no code violations, owner occupancy (JADU), sale and rental of units, deed restrictions.
7. Parking requirements eliminated to be consistent with State Law
8. Adds objective standards for architectural style of ADUs.
9. No Impact fees for ADUs below 750SF
10. Utilities
Attached ADU - City cannot require separate utility connection, unless constructed at the same time as the new Single-Family Dwelling
Detached ADU – City can require a separate utility connection and may impose a capacity or connection charge proportionate to its burden on the system.
CITY COUNCIL – JULY 9, 2024 7
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing, consider the information contained in the staff report, and testimony of the public, and take the following action:
1. Determine that the proposed amendments qualify for a statutory exemption under Section 21080.17 of the California Public Resource Code (PRC), and thereby is exempt from further environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15282(h). CEQA does not apply to the adoption of an ordinance by a City to implement the provisions of Sections 65852.2 and 65852.22 of the California Government Code (State ADU Laws).
2. Adopt an ordinance to amend Lincoln Municipal Code Chapter 18.37 – Second Dwelling Residential Units and related Articles of Title 18 – Zoning to comply with State Laws regarding Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) in the City of Lincoln.
CITY COUNCIL – JULY 9, 2024 8
END OF PRESENTATION
PLANNING COMMISSION - JUNE 15, 2022 9
CA LEGISLATIVE HISTORY
California first implemented second dwelling unit policies in the 1980’s. However, a new era began in 2016 when the state legislature sought to create more comprehensive, uniform rules for ADUs.
2016: State required cities and counties to allow ADUs on most residential lots, preempting local zoning ordinance and permitting process (AB2299, SB1069). 2017 & 2018: Additional revisions to vigorously promote the development of ADUs and removed barriers to the development of ADUs in response to the growing housing supply and affordability crisis. Limited local control by prescribing size, lot, parking, and setback requirements for ADUs.
2019: Voided provisions in CC&Rs for HOAs that prohibited or restricted ADU on a lot zoned for single-family use (AB 670).
2020: Eliminated owner-occupancy requirements for ADUs approved between January 1, 2020 – January 1, 2025 (AB 68, AB 881, and SB 13)
CITY COUNCIL – JULY 9, 2024 10
CA LEGISLATIVE HISTORY
2021: ADU shall be deemed approved, if the local agency has not acted on the completed application within 60 days (AB 3182).
2022: Increased height of detached ADUs to 18-foot tall, if lot is within 1/2 mile walking distance to transit (AB 221, SB 897).
2023: Allows homeowners to sell their ADUs separate from their primary residence, must follow same rules of condominiums (AB 1033). 2024: Removes owner-occupancy requirements for ADUs indefinitely. This does not include JADUs as they are still subject to owner occupancy (AB 976).
CITY COUNCIL – JULY 9, 2024 11
SUMMARY OF ADU ORDINANCE
6. Adds general requirements: siting, sizing, maximum number on parcel, no code violations, owner occupancy (JADU), sale and rental of units, deed restrictions.
7. Increases maximum size of an Attached ADU from 30% to 50%, and increases maximum Detached ADU size from 640 square feet (SF) to 1,000 SF or (1,200 SF if the ADU is still less than 50% of the primary dwelling).
8. Updates Development Standards in a table format (Table 18.37.050-1:
Development Standards for ADUs and JADUs).
9. Revisions to parking requirements.
10.Adds objective standards for architectural style of ADUs.
CITY COUNCIL – JULY 9, 2024 12
ADDITIONAL REQUIREMENTS
Impact Fees
No impact fees for ADUs less than 750 SF
Fire Sprinklers
ADUs shall not be required to provide fire sprinklers if they are not required for the primary dwelling
CITY COUNCIL – JULY 9, 2024 13
UTILITIES
Attached ADU/JADU: The City shall not require a separate utility connection between an ADU or JADU and the utility, or impose a related connection fee or capacity charge, for units located entirely within a primary dwelling, unless the ADU or JADU was constructed with a new single-family home.
Detached ADUs (Existing primary dwelling): The City may require a new or separate utility connection directly between the ADU and the utility. The connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service.
CITY COUNCIL – JULY 9, 2024 14
Work Orders and Operation & Maintenance
Agreement Execution with SitelogIQ
Matthew J. Medill, P.E. | Public Works Director
Presentation Overview
• Background
• Project Locations
• Recommendation for Project Execution and the Operations & Maintenance Agreement with SitelogIQ
Background
• March 12, 2024: Presented a proposed energy conservation project. • April 9, 2024: Presented energy conservation projects for consideration and conducted public hearing approving Resolution 2024-064. • May 28, 2024: Presented three financing options for consideration. • July 9, 2024: Approval of Resolution 2024-149 authorizing execution and delivery of an equipment lease/purchase agreement and an escrow and account control agreement with Banc of America Public Capital Corporation.
Project Locations
City Hall
Lincoln Community Center
Project Locations
Corporation Yard McBean Park
Project Locations
Police
Department
Airport RES-BCT
Staff Recommendations
Adopt RESOLUTION 2024-150 authorizing the City Manager to execute Work Order #1 and Work Order #2 for a total of eleven million fifty thousand dollars ($11,050,000), and the Operations and Maintenance Agreement with SitelogIQ for a first-year annual cost of $48,750 adjusted annually for CPI-U for a 120-month term.