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HomeMy WebLinkAboutAgenda Report - June 7, 2017 C-15TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Receive Report from the City Manager on City Council Goal Progress MEETING DATE: June 7, 2017 PREPARED BY: City Manager RECOMMENDED ACTION: Receive report from the City Manager on City Council goal progress. BACKGROUND INFORMATION: In 2015, the Council held two public workshops to identify, prioritize and set project specific goals intended to complement the aspirational goals, objectives and major projects identified by the Council more than a decade earlier. The Council identified several priorities and categories: - Economic Development, including "shovel -ready" land and incentive program to focus on underutilized parcels - Public Safety, Gang Reduction Intervention Program, training and increase in staffing Fiscal sustainability, asset preservation, CaIPERS and Other Post -Employment Benefits - East Side Rehabilitation, incentive programs and infrastructure Addressing homelessness issues Providing Downtown wi-fi internet and music Beautification of highway overpasses The Council staff reports and the minutes from the workshops are attached for more information. Council and staff accomplished much since the 2015 goal setting and more work needs to be done. Staff offers the following highlights of achievements: Fiscal Sustainability City Manager's Office ■ PERS stabilization fund. The City has moved aggressively to address its fiscal sustainability in light of the pending financial crisis driven by CaIPERS plan to address its unfunded liabilities. As Council knows, the City faces an increase in our General Fund PERS bill from $6 million/year to $13.5 million/year over the next five years. Unfortunately all indications are that the bill will continue increasing in the years after that, although longer term projections become increasingly difficult. At the close of the 2015/16 budget year Council established a PERS stabilization trust and later funded it with unrestricted reserves of $3 million. The draft budget before you tonight adds another $1.8 million in general fund reserves generated through new cost of service charges in Streets, Transit and Community Development. These changes significantly lengthen the amount of time the City will remain solvent. Early APPROVED: a4 `GA -6- ) f Stephen Schw auer, City Manager estimations that did not include PERS Stabilization funds projected that the City would be insolvent by the end of 2021. Council's most recent actions extend that time frame an additional 18 months through the summer of 2023. Staff and Council have also been active on the advocacy front working collaboratively with the League of California Cities to bring this issue back to the forefront of the cities legislative agenda. The City Manager serves on a League pension task force that is drafting a policy paper and survey to generate data to bring the legislature to reality in terms of the cliff many California cities will face without reform. Councilwoman JoAnne Mounce has also worked in her capacity as League President to drive the issue back to the forefront. While staff are assessing additional steps to address this crisis, the 2017/18 budget message should make it clear that the City is in need of long term funding sources or PERS expense reductions to continue to be able to provide a politically sustainable level of municipal services. Economic Development • Continued growth. Lodi continues to grow its economic and housing base. On the commercial side this includes the buildout of Reynolds Ranch and the Lodi Shopping Center and the reuse of former Walmart space. While store closure announcements and turnover have been disappointing, Lodi continues its resilience with new stores and services offering Lodi residents and visitors additional choices. On the residential side, the Rose Gate and Orchard Lane developments continue to build (FCB Homes) and the Villa Fiore (Van Ruiten Ranch project), Harvest Crossing (Grupe Development - Turner/Lower Sac), Vintner Square (Grupe Development - Taylor/Lower Sac), Reynolds Ranch Apartments, Reynolds Ranch Senior Housing, Eden Senior Housing are at various stages of development. In addition, the City has issued planning approvals for two new Lodi hotels; La Quinta Inn and Candlewood Suites. ■ Former General Mills property. The property was acquired in March 2016 by Bond Manufacturing, an East Bay headquartered outdoor living products distributer. Bond currently occupies approximately 400,000 square feet, however, approximately two-thirds of the property is vacant and available for lease. Staff supports the owner in marketing the property, including promoting Lodi's strategic benefits while responding to interested parties and recommending the site in response to referrals from the California Governor's Office of Business and Economic Development (GO -BIZ). Staff is working with the San Joaquin Partnership to address inquiries about the site. • Industrial development. Staff is encouraged by preliminary plans to develop a longtime undeveloped approximately 21 -acre parcel on South Guild Avenue. Notwithstanding the largely underutilized former General Mills manufacturing facility, the City has a low inventory of privately owned industrial land available to accommodate new development. The City's adopted 2010 General Plan designated a few hundred acres of the adjacent unincorporated area as future industrial growth area to meet eventual market demand, however, within the context of the current market recovery some have argued the lack of shovel -ready land could be making the City less attractive to site selectors averse to the time and risk traditionally associated with the annexation, land entitlement and infrastructure buildout process. A number of large-scale industrial projects continue to move forward in other areas of the county, primarily within strategically planned and speculatively developed industrial parks. This activity in many ways mirrors Lodi's own recent growth in retail commercial development and is the fruit of long term planning investments made years prior. Staff's understanding of the current sentiment is the high cost of construction makes a sizeable speculative industrial development in Lodi too risky for developers. This is entirely market-driven and may change as property values further increase. • Cepheid. In March 2016 Cepheid purchased the former Blue Shield office buildings on Guild Avenue, which have been vacant for several years, with plans to expand their adjacent manufacturing line and to provide additional office support space. Ultimately Cepheid expects the acquisition will enable the company to create between 250 and 300 new jobs in Lodi, bringing the company's Lodi employment to 500. Although a private effort, staff and Council put a significant effort into creating a business climate that makes Lodi attractive for Cepheid. Electric Utility Department • The Electric Utility has been working to support Lodi City Council's economic development goals by way of its 10 -year Capital Improvement Plan (CIP) to ensure sufficient capacity and reliability of the electric infrastructure to support existing, expanding, and new developments in the community. The CIP includes ongoing substation, overhead, and underground electric utility improvements to maintain its distribution system. In addition, when providing new electric service the utility requires developers to install infrastructure to the property line in preparation for future growth for the neighboring parcel. Another key component of the CIP is the 230 kV Interconnection Project that will provide Lodi's electric customers (existing and new) with increased reliability and capacity at the point of interconnection to the transmission grid. Staff continues to work with the Lodi Chamber of Commerce and its Agribusiness Committee in an attempt to develop and maintain support for the project. • The Electric Utility offers economic development rate incentives to provide discounts on the electric bill for new businesses and new jobs. In addition, various energy efficiency and solar incentives are available to all commercial and industrial customers. Public Safety Police Department • Automated vehicle license plate readers were installed this year and have become increasingly popular with our officers. The readers have already led to several recoveries of stolen vehicles and assisted in the apprehension of several suspects for various crimes in our community. • Special Enforcement Team (SET). The department identified highly proactive officers and formed a SET that uses predictive policing analysis to identify the area where new crimes will occur. The Department puts these officers to work on overtime in various areas that appear to be the most likely for new crimes to be committed and where most gang crimes occur. In 2016, we have had the lowest number of gang crimes (49) ever recorded. These low numbers were recorded even with two gang homicides in 14 hours earlier in the year. The SET team has shown to be very effective in reducing gang crimes and general crime overall in our community. The SET team does not respond to constant radio calls so they are freed up to be more pro -active in gang and crime ridden areas. They have also been utilized at times to concentrate on traffic enforcement. We have worked for collaboratively with Ruben Guardiola and Families First and this has contributed to the reduction of gang member numbers and our school resource officer's teaching GREAT to the kids also has an effect on the kids and their decision making. Homelessness Police Department • We have used officers and SET team members to work on the homeless problem in Lodi. We have also continued to work with Caltrans on certain areas. The Department hired Officer Ryan Holz as a community liaison officer that is similar to a position at the Manteca Police Department. This allows the officer more time to find resources for the clients they serve. We are also continually working with our faith based organizations to help with this community- wide issue. East Side Infrastructure Rehabilitation Public Works Department 2016 Extruded Traffic Stripes • Completed August 2016 • Final Cost: $56,517 • Included Bike Lane on Pine Street Alley Improvement Project — Phase 5 • Completed September 2016 • Final Cost: $133,676 • Location between Daisy Avenue and De Force Avenue 2016 Cherokee Lane Accessibility Improvements Project • Completed December 2016 • Final Cost: $162,486 Alley Improvement Project — Phase 5 • Completed September 2016 • Final Cost: $133,676 • Location between Daisy Avenue and De Force Avenue 2016 Grapeline Bus Stop Accessibility and Shelter Improvements Project • Completed March 2017 • Final Cost: $396,088 Fire Station No. 2 Replacement Project • Completed December 2015 • Final Cost: $4,373,804 Lawrence Avenue Accessible Parking Improvements • Completed June 2017 • Final Cost: $59,567 Additional projects to be completed in the near-term 2017 Grapeline Bus Stop Accessibility and Shelter Improvements Project • Scheduled Completion: Summer 2017 • Estimated Cost: $460,000 Lockeford Street Improvement Project • Scheduled Start: October 2017 • Location between Union Pacific Rail Road and Cherokee Lane Water Meter Program — Phase 7 • Scheduled Completion: Fall 2017 • Estimated Cost: $4,983,200 Stephen Schwabauer City Manager Attachments: LODI CITY COUNCIL SPECIAL CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MARCH 31, 2015 A. Call to Order / Roll Call The Special City Council meeting of March 31, 2015, held at Hutchins Street Square, 125 South Hutchins Street, Lodi, was called to order by Mayor Johnson at 6:01 p.m. Present: Council Member Kuehne, Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Chandler, and Mayor Johnson Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo NOTE: Council Member Kuehne left the meeting at 6:33 p.m.; Council Member Nakanishi left the meeting at 8:10 p.m. B. Topic(s) B-1 City Council Goal Setting (CM) City Manager Schwabauer provided a PowerPoint presentation regarding City Council goal setting. Specific topics of discussion included the City's mission statement, existing major goals and objectives, and available resources. Council Member Nakanishi stated he would like to see the City's mission statement include the City's desire to provide courteous, efficient service to its citizens. Council Member Mounce expressed concern that the City's mission and goals do not address the separation of east and west side, stating that the City should provide equal service to all citizens of this community. Additionally, she believed the objective to provide open access to public meetings is not currently being met because notices and information are not posted in other languages or at locations that would provide the best outreach to other cultures. Mr. Schwabauer stated that staff would bring back the comments at a later meeting to adopt changes to the existing goals. In response to Council Member Mounce, Mr. Schwabauer stated that staff is currently in negotiations with all of the unions and it is possible that all or some portion of the available funding could be spent on labor issues. He explained that one priority may be to address the employees who have contributed to the City's success in surviving the recession by taking pay cuts. Each department and Council Member described their top goals and priorities, as set forth in the staff report and PowerPoint. Additional discussion and questions occurred as shown below. City Clerk In response to Council Member Kuehne, City Clerk Ferraiolo graded the current e -Records system as mediocre due to its age and unreliability and further expressed her hope that a new system would be more technologically advanced and dependable. In response to Mayor Johnson, Ms. Ferraiolo stated that the option to address the issue on a Citywide basis by updating the City's website and customizing a records management program would involve the Information Technology Division, as well as buy -in from City departments. Council Member Mounce concurred that the City's website needs to be improved and that the e -Records system should be more user-friendly, as documents are often difficult to locate. Mr. Schwabauer added that, at this time, staff is not asking for a decision between the two options and there is more research needed to see which direction makes the most sense. Council Member Nakanishi Council Member Nakanishi outlined his goals, which were not originally included in the staff report or PowerPoint, stating that he shares the same goals as his fellow Council Members. He expressed that the areas of jobs, sales tax, and income tax are important, and his primary goals would be safe streets and schools; gang suppression via the California Gang Reduction, Intervention and Prevention Program; the browned -out Fire Engine No. 1; park maintenance; and economic development. Community Development In response to Council Member Mounce, Mr. Schwabauer explained that the request for a second gang intervention worker comes from the Community Development Department, versus the Police Department, because it operates the Community Development Block Grant program and houses that employee. He stated that many cities find that this position does not belong in the Police Department, as it can be mistakenly viewed as a narcotics agent. In response to Mayor Johnson, Mr. Schwabauer stated that the request for an additional inspector position would be added as an authorized position; however, it would not be filled unless the level of permits increased significantly. Developers count on speed to get inspections scheduled and finalized in a timely manner, and staff would like the ability to bring in a second position, likely on a contract basis, when the need arises. In response to Mayor Johnson, Mr. Schwabauer stated that the Reynolds Ranch annexation, as an example, included a requirement in the application that the developer fund the cost of environmental studies and all of the work to make the annexation possible. In further response, Mr. Schwabauer stated that there are likely 10 times more property owners in the future industrial annexation than there were for either Reynolds Ranch or the Southwest/Gateway annexations and that anywhere between 500 and 1,000 acres could be annexed into the City. Economic Development In response to Council Member Mounce, Business Development Manager Adam Brucker stated that Worknet has training programs and that staff is providing this information to General Mills employees. Ms. Mounce suggested that apprenticeship and trade programs be shared with them as well and stated she has contact information that she could share with staff. In response to Mayor Johnson, Mr. Brucker stated that Worknet is working with General Mills to plan a job fair for late summer. In response to Council Member Mounce, Electric Utility Director Elizabeth Kirkley stated that the fiber optic network was originally installed for communication to the substation and operations center through the Supervisory Control and Data Acquisition system, which is still currently in use. The plan is to expand the fiber to other facilities, such as Police, Fire, and Hutchins Street Square, for City purposes. Ms. Kirkley explained that there are other fiber strands that the City could potentially utilize as part of its economic development tool box. Mr. Brucker added that the City installed more fiber than it needed and it is being underutilized. In response to Council Member Nakanishi, Ms. Kirkley stated that it is more costly to run electricity underground. Council Member Nakanishi expressed support for researching the feasibility of operating a fiber network. In response to Mayor Johnson, Mr. Brucker stated that, in working with a consultant, staff would develop a project scope to ascertain what the potential revenue could be in operating a fiber network in order to determine if it is feasible and beneficial before proceeding. In response to Council Member Nakanishi, Mr. Schwabauer stated that one of the costs of the project is to provide nodes in the network so that others can access the fiber and the consultant would assist in determining what that cost is. Another cost is to stretch the fiber, beyond the City facilities already on the network, to those who want to use it. In response to Council Member Nakanishi, Mr. Brucker stated that many cities have property - based improvement districts, as well as business improvement districts, and the formation of a downtown property -based business improvement district would not be uncommon. Council Member Mounce questioned how many out-of-town property owners there were in the downtown area, to which Mr. Brucker responded that he was unsure. Ms. Mounce predicted that the out-of-town owners will demonstrate the greatest resistance, as well as others who are less vested in the downtown area. Mr. Brucker stated that, as part of the process, the property owners being assessed participate in an election process that would require a majority vote in favor to form the district, to which Ms. Mounce stated she believed that will be a challenge. Mayor Johnson suggested that staff review information on the previous attempt to determine what worked and what did not. Electric Utility Department In response to Council Member Nakanishi, Ms. Kirkley stated that electricity for new developments is primarily underground and each city has its own unique circumstances that influence whether electricity should be installed overhead or underground. Council Member Mounce expressed her desire that the lines on Cherokee Lane be installed underground. Fire Deoartnient In response to Mayor Johnson, Ms. Kirkley, who shared a similar goal with Fire on succession planning, stated that staff annually reviews the budget on training funds for existing employees and to ascertain whether new hires are adequately qualified or will require additional education or instruction to get them to a higher -performing level. In response to Mayor Pro Tempore Chandler, Deputy City Manager Jordan Ayers stated that one of his goals ties into the Fire Department's goal, which is to develop a vehicle replacement policy, and that the vehicle replacement fund is currently underfunded by $2.4 million. Mr. Ayers stated that an agency should typically set aside a dollar amount equal to depreciation. As an example, a piece of equipment with a 25 -year life expectancy should have a 4 percent set-aside every year, as well as an inflation factor. Council Member Mounce stressed the importance of an asset replacement policy to replace or repair all City assets, including the turf at the Grape Bowl, vehicles, apparatus, and any piece of equipment with a 5- to 10 -year lifespan. Council Member Nakanishi stated that he cannot see how government agencies can set aside money when they have so little funding available, to which Mr. Ayers responded that many governmental entities have a plan in place for asset replacement. Internal Services Department In response to Council Member Mounce, Mr. Ayers stated that the fixed asset data has been sent to Tyler Technologies for conversion and that the information should be loaded and available soon, which would fulfill one of the concerns expressed by the City's auditor. In response to Council Member Mounce, Mr. Ayers stated that his budget staff would provide each department with a list of assets included in the vehicle replacement fund, as well as the depreciation amount, and direct departments to include those dollar values in their annual budget. In response to Council Member Mounce, Mr. Ayers stated there are two types of California Public Employees Retirement System (Cal -PERS) liabilities: one is the pool of employees who have Sick Leave conversion, which will decrease over time; and the other is the nominal fee for every retiree who takes medical insurance through the Cal -PERS system, which will continue to occur. In response to Mayor Johnson, Mr. Ayers stated that most jurisdictions have a third party trust fund handle the Other Post Employment Benefits liability in order to get credit within the actuarial process. Mayor Johnson commented that he believed the numbers used on vehicle replacement are unrealistic and that the vehicles should not be turned over at such a low mileage. Parks, Recreation, & Cultural Services In response to Council Member Mounce, Parks, Recreation, and Cultural Services Director Jeff Hood stated that the Hutchins Street Square Foundation's goal is to create an endowment fund for investment in the Square to do things such as extension of fiber optic into the building and replacement of chairs, tables, and equipment. He stated that he would be willing to approach the Foundation to ask if it would spend some of the investment proceeds from the recently -donated money on the roof replacement project. In response to Mayor Johnson, Mr. Hood stated that the Lions Club officially adopted Emerson Park and its representatives are proposing to improve the small playground area regarding access issues and replacing outdated playground equipment, as well as potentially adding a second picnic shelter because of the park's popularity. In response to Mayor Johnson, Mr. Hood stated that plans are being developed, with the assistance of the Public Works Department, for the resurfacing of the north side of Lodi Lake. The first draft is under review with the State Division of Boating and Waterways, and construction would likely begin this winter, with completion in mid -spring. He estimated that the south side parking lot improvements would begin after that project, adding that there is money available from the land sale associated with the Surface Water Treatment Plant, but he was reluctant to move forward with the project for fear that the heavy equipment from the other project could cause damage. In response to Mayor Johnson, Mr. Hood stated that he would contact the State Division of Boating and Waterways to see if it could provide any assistance with the Lodi Lake erosion issue. Mayor Pro Tempore Chandler stated that boat speed is a contributing factor to the erosion problem, adding that there is a community group who would like to see the City pursue the issue because the boats are loud, dangerous, and destroying the river. Mr. Hood stated that a recent study found that boat wake, wind, and the river washing against the bank are causing the problem with erosion. The changes in water levels from Woodbridge Irrigation District operations and bank alterations upstream also have an impact. Police Department In response to Council Member Nakanishi, Police Chief Mark Helms confirmed that the City's firing range is located in the old Police Department Building, it is in disrepair, and it is inadequate for long-distance or rifle training, adding that staff often must rent a facility or utilize Stockton's range. Council Member Mounce requested that the Chief work with the City Manager to schedule a Shirtsleeve Session to tour the Police Department facility to view the conditions and the various apparatus and equipment that need replacement. Mayor Pro Tempore Chandler commended Chief Helms for his department's quality of work, despite budget challenges. Pubfic Works Department In response to Council Member Mounce, Public Works Director Wally Sandelin stated that power washing the downtown sidewalks is necessary due to the high level of contaminants on the walkways; the amount of water that a pressure washer uses is less than a regular hose; and the volume of water extracted back into the machine after cleaning is low. Council Member Mounce expressed that she would like to see the sidewalk gap closure policy come back to Council. In response to Mayor Johnson, Mr. Sandelin stated that the traffic signal on Turner Road and California Street moved up on the priority list based on comments from Council and the public. Mayor Johnson stated he was previously told by staff that what moves a signalized intersection up or down on the priority list has to do with whether it meets the State's guidelines and he questioned why this particular light moved higher, to which Mr. Sandelin agreed he would meet with him later to discuss the issue. In response to Council Member Mounce, Mr. Sandelin stated that the potential decrease in federal and State funding by as much as 30 percent for road repairs will affect the City's ability to maintain the streets at the current level; however, Lodi's street surfaces and repairs are superior to most communities in California, and he calculated that the reduction in funding may impact the City less than surrounding communities. In addition, he stated that some of the reduction could be made up from Community Facilities District (CFD) taxes from new development, which would provide general fund revenue for other departments and free up money for specified maintenance. Mr. Schwabauer explained that the CFD tax is on new development coming into the City and is not a new tax. Mr. Schwabauer asked that participants rank their top priorities by placing stickers next to their most important goals, which were displayed on presentation boards. Council Members received four stickers each, department heads received two apiece, and each member of the public received two stickers. Mr. Schwabauer explained that the results will not be debated this evening and that staff would return at a later date with a set list of goals that Council can further structure and rank. Mayor Johnson suggested that this exercise be postponed since two of the Council Members left the meeting early, to which Mr. Schwabauer suggested that the ranking activity proceed and that Council Member Kuehne's and Nakanishi's priorities can be added prior to tabulating the list. RECESS At 8:25 p.m., Mayor Johnson called for a recess in order to distribute stickers to the participants, and the City Council meeting reconvened at 8:32 p.m. Following the ranking exercise, Mr. Schwabauer provided a general review of the results. Council Member Mounce suggested that many of the goals can be grouped together, such as gang suppression and homelessness with the Police Department's goal to increase staffing, in order to better refine the goals. Michael Carouba expressed support for this meeting and exercise, which demonstrated a glaring need for an increase in City revenue. He suggested that the City consider leasing the fiber ring to an existing network rather than trying to become one, which could save the City money. He believed the City needs to improve in the economic development area and suggested that efforts be made in all areas, not just industrial, adding that there are many locations currently not served by City electric and water. Ed Miller stated that, based on the needs presented this evening, he believed the City was severely lacking in funds to achieve its objectives and, until the economic environment produces revenue, the City will continue to be unable to hire police officers, repair parking lots, and improve Lodi Lake. He believed that many people still have the false belief that Lodi is a no -growth city. Mr. Miller suggested that greater effort be made to convince State legislators to change how it treats small businesses because many can no longer afford to remain open, which negatively effects the economy. Pat Patrick, President and CEO of the Lodi District Chamber of Commerce, concurred that the City peeds more revenue. He stated that the City can no longer compete the way it currently is with other communities, adding that the Chamber's Vision 2020 Plan is a resource than can help with this endeavor because it includes ideas with little to no costs tied to them. Bay Area businesses are looking to escape their high-cost location, and Lodi needs to be ready to target them and bring in those high -paying jobs. C. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 9:06 p.m. ATTEST: Jennifer M. Ferraiolo City Clerk LODI CITY COUNCIL SPECIAL CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 26, 2015 A. Call to Order / Roll Call The Special Goal Setting meeting of the City Council of May 26, 2015, held at Hutchins Street Square, 125 South Hutchins Street, Lodi, was called to order by Mayor Johnson at 6:07 p.m. Present: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Chandler, and Mayor Johnson Absent: Council Member Mounce Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topics(s) B-1 City Council Goal Setting (CM) City Manager Schwabauer explained that the purpose of the meeting is to follow-up from the first goal setting session, at which Council, staff, and the public provided input on Citywide priorities, and give Council an opportunity to rank the priorities based on the outcome of the first session. From that meeting, the priorities were arranged into eight categories: economic development, downtown, homeless, public safety, gangs, fiscal sustainability, asset preservation, and "other." Mr. Schwabauer cautioned that the upcoming fiscal year budget is near completion and that any projects or priorities that Council directs this evening would likely come back as a mid- year budget adjustment. He stated that $775,000 in one-time funding, as a result of the end of the "triple flip," is the available resource for funding priorities. Mayor Johnson expressed disappointment in the lack of public turnout at both goal setting sessions and suggested a third session to discuss a narrowed -down list and, hopefully, encourage greater public input. Mayor Pro Tempore Chandler and Council Member Nakanishi believed a subsequent session was unnecessary. In response to Council Member Nakanishi, Mr. Schwabauer explained that a Number 1 was the highest rank in the previous exercise. In further response, Mr. Schwabauer reiterated that none of the items on the list are included in the budget; projects would need to be addressed during mid -year budget adjustment; and the purpose of this meeting is to rank the priorities and not to determine funding, process, and timeline for each priority. Council reviewed each of the categories. Economic Development & Downtown Mayor Pro Tempore Chandler stated there was overlap in the goals as many were similar, and Council Member Kuehne suggested consolidating some of the listed items. Mayor Johnson explained his goal regarding an economic development incentive program, stating the City should be ready to assist new businesses relocating or expanding in Lodi by offering rebates on electricity, water, and wastewater or reducing permit fees. He would like a plan in place as a starting point for staff to assist businesses as soon as an inquiry is received. Council Member Kuehne suggested the homelessness issue be removed as a category because significant effort is being made by the Homeless Solutions Committee to develop a strategy to address the homeless. At this point, there is no action necessary on the City's part, and if a solution is discovered, he hoped it would not cost the City much, other than a potential property to address the serious lack of housing. Council Member Nakanishi concurred with the suggestion. Mayor Johnson agreed, stating that an economic development business attraction plan would include a dollar figure on what it would take to annex and make industrial land "shovel ready" so there is full awareness of costs and steps needed to make land available; whereas, placing a dollar figure on the homeless situation is difficult because the cost and timeline are unknown factors. Mr. Schwabauer suggested creating a separate category for "opportunity cost items," to include homelessness and other priorities that are important and need staff attention but lack specific dollars and timelines. Mayor Pro Tempore Chandler expressed support for the suggestion, agreeing that the homeless situation is a high priority, but it lacks a precise strategy. He further suggested that several of the items listed under economic development were similar and should be consolidated and/or eliminated. Mr. Schwabauer suggested that the priority relating to Lodi's fiber optic system be placed in the "opportunity cost items" category and that staff continue working toward that endeavor. Mayor Johnson agreed with removing the priority relating to the Vision 2020 goals and suggested combining the four goals relating to jobs, business attraction, economic incentives, and infrastructure into one common priority. In response to Mayor Johnson, Mr. Schwabauer stated that staff understands that Council is looking for projects that make it possible for businesses to locate in Lodi without the need to annex land, prepare environmental documentation, work with various agencies, and build electrical infrastructure. In response to Council Member Nakanishi, Mr. Schwabauer confirmed that Lodi's infrastructure is largely in decent shape, but some effort is necessary on electrical infrastructure, which is currently starting to be addressed. In terms of water, wastewater, and streets, Lodi's ratings are extremely high in comparison to a majority of the country, especially with streets, and he stated that all of the outdated water and wastewater lines will be replaced within the next couple of years. Infrastructure on the water delivery and wastewater collection level are ready to serve new business; however, electric utility infrastructure, particularly with substations and lines, is inadequate for growth on the east side of Lodi. In addition, an environmental impact report (EIR) is not in place to allow annexation of land in that area. Mr. Schwabauer provided examples of the Reynolds Ranch project, stating it cost $750,000 to implement a full EIR, and the attempted Delta College satellite campus, which was estimated at $7 million for water, wastewater, and electric utility infrastructure, in addition to environmental and attorney fees. He added that smaller -scale annexations may be easier to manage and less expensive because they would likely not require a full EIR. Council Member Kuehne stated that economic development should also include streamlining the process for business owners locating in town to include concessions on electric utility and researching existing buildings that are underutilized and getting them compliant with Americans with Disabilities Act (ADA) regulations or demolished in some cases. Mr. Schwabauer concurred that there are a number of underutilized buildings and an incentive program would make it economically feasible for a business to utilize it. Council Member Kuehne stated that staff in Community Development should have a list readily available of vacant properties, along with the size and requirements necessary to make the building user -ready and related incentives to make the endeavor worthwhile to the incoming business. He further stated that a potential business owner should be able to accomplish much of its efforts at one counter, rather than having to move from one department to another. In response to Mayor Johnson, Council Member Kuehne stated that his suggestion is different than business incentives and attractions involving annexation of land, EIRs, and infrastructure. Mayor Johnson suggested encapsulating that into the downtown category. 2 Council Member Kuehne stated that both goals are important and should be made the top two priorities: incentive program for businesses coming into town for commercial, industrial, and retail; and annexation of small acreage to be "shovel ready." Mr. Schwabauer stated that staff will encapsulate economic development for "shovel ready" projects as one category and economic incentive programs for underutilized properties as another category. In response to Mayor Johnson, Mr. Schwabauer stated that the downtown property based improvement district can be added to the "opportunity cost items" category. Council Member Kuehne stated he would like to pursue the issue of WiFi in the downtown area, as well as music during special events and weekends. Further, Council Member Kuehne suggested using Transient Occupancy Tax (TOT) revenue to beautify the underpass at Harney Lane and fund a portion of the wayfinding signage program as this would be an investment in tourism by making the entries into the community more attractive. In response to Mayor Pro Tempore Chandler, Mr. Schwabauer stated that Caltrans would need to cede its obligation to maintain the freeway rights-of-way and he believed Caltrans would agree under the condition and by agreement that it be in perpetuity and that the City indemnify and hold Caltrans harmless. He stated that Lodi's TOT is 6 percent, which is lower than most of the surrounding communities, and Visit Lodi! charges an additional 3 percent. Mr. Schwabauer stated that Lodi placed an initiative on the ballot in early 2000 to adjust the TOT, but it failed because voters did not understand who would pay the tax and how the money would be used. He believed a better effort could have been made to educate voters on the measure. Mayor Johnson suggested another attempt to place the matter on a future ballot, along with an education piece, to which Mr. Schwabauer replied that staff could accomplish that with a relatively limited expenditure of staff time and resources. He further stated that he would be willing to speak on the matter at service clubs and further educate the public; however, the City is strictly prohibited from using City resources to promote a measure and encourage people how to vote. The City can, however, use resources to educate the public with fliers and informational pieces on what the measure means, how much money could be raised, and how the money would be spent. In addition, Council Members and staff can individually educate and promote the measure on their own time, and an agency such as Visit Lodi! could use resources to promote the measure. In response to Council Member Kuehne, Mr. Schwabauer stated that staff is already in progress with the downtown property based improvement district effort; Council has dedicated resources to the downtown, including lighting and sidewalk cleaning and repairs; he and the Mayor have attended meetings with downtown business owners to promote this proposal; and Business Development Manager Adam Brucker will begin setting up meetings and preparing a layout of the program. The previous partnership with the downtown was a promotions -based program, but based on meetings with the owners, they would prefer a maintenance -based program, and staff will develop a list of maintenance needs in the downtown area. He suggested the item be placed under the "opportunity cost items" category and stated he hopes to introduce a program and list of projects to Council by the end of the year. Public Safety & Gangs Mayor Johnson suggested that public safety and gangs be in the same category Council Member Nakanishi stated that, for the average citizen, public safety is a higher priority than economic development and the downtown. People want safe streets, fire and police protection, and gang prevention. In response to Council Member Nakanishi, Mr. Schwabauer stated that succession planning for the Fire Department includes encouraging staff to attend command college, management training, and classes and programs that would make them more eligible for promotion when opportunities arise. Council Member Nakanishi stated that the browned -out Engine No. 1 should be fully and permanently restored and expressed support for funding the Gang Reduction, Intervention, and Prevention (GRIP) program. Mr. Schwabauer stated that the fire engine was funded in the budget at $275,000 and next year Council can 3 evaluate the success of the allocation and whether it was enough to keep the engine in full operation. Further, Mr. Schwabauer stated that, through the negotiation process, effort is being made to keep valuable employees in both Police and Fire so they are not perpetually understaffed. Council Member Kuehne stated he would like to see the GRIP program funded as a regular budget item so that each year it is not a scramble to fund the program. Mr. Schwabauer stated that the officer element of the program is being funded going forward. In response to Mayor Pro Tempore Chandler, Captain Tod Patterson stated that the Police Department's budget calls for 71 officers; however, with retirements occurring over the next few weeks and officers on injury leave, the number of available officers is 64. He added that a recent recruitment will add two new officers in early June. Captain Patterson stated the Department is using saved overtime money to initiate a downtown walking beat on Tuesdays and Thursdays and designating a downtown bike officer to the weekly Farmers' Market and on Saturdays. In addition, while School Resource Officers are on break from school for the summer, their time will be allocated to certain divisions, patrol, or as bike officers. In response to Council Member Kuehne, Captain Patterson stated that, with regard to recruitment, there are currently six applicants in background check, but that is a lengthy process. He hopes to be at 71 officers by July 1. In further response, Captain Patterson stated that the Department is authorized for 71 officers; 25 years ago, the Department was authorized for 85 officers; and any increase over 71 would be a benefit to the Department. Mr. Schwabauer pointed out that the difficulty for the Police Department is that it rarely remains fully staffed for a long period of time due to retirements and injuries. Staff is looking into methods or programs to address impending retirements in order to be overstaffed for a short period of time, allowing the Department to continue downtown patrol or special projects. He stated it can be risky to allow a department to become overstaffed; however, it would be for a short, limited time and the costs are not significant. Mr. Schwabauer explained that a potential program would encourage those nearing retirement to notify the Department early, require the officer to sign a binding notice of retirement, and hire an officer to work for a certain time period before the retiree leaves employment with the City. In response to Mayor Johnson, Mr. Schwabauer agreed there is a risk with new hires because not every officer passes probation, but the benefit is that the speed of the recruitment process will be increased while the Department is at full, or close to full, staff before the retiree leaves. Council Member Kuehne suggested that the sight of a parked Police car and presence of officers in an area would make an impact in discouraging crime. In response to Mayor Johnson, Fire Chief Larry Rooney stated the Fire Department is similarly experiencing staffing difficulties. There are three openings with five to six applicants currently in background check who will begin the Fire academy through the City of Stockton in July. He stated that the majority of the Department is individuals new to their positions: command staff is 95 percent new and line personnel is 60 percent new, which is the driver behind succession planning. The Department had a high percentage of retirements and transfers to other agencies over the last few years alone, and Chief Rooney would like to see a Department where people remain and grow along with the Department by progressing through the ranks. In response to Mayor Johnson, Neighborhood Services Manager Joseph Wood stated that the Youth Outreach Workers work with at -risk kids on campus during school sessions and over the summer break they continue to maintain contact and assist them with training, jobs, and activities that will keep them occupied and away from destructive elements. Mayor Johnson suggested the Fire Department needs some attention to develop programs or schedules to allow new staff to develop and grow. Mr. Schwabauer pointed out that, despite having a high number of individuals serving in new capacities, they are all extremely experienced, intelligent, and energetic. Mayor Johnson agreed, stating he was primarily concerned with those 4 entering the department at the base level. With regard to public safety, Mr. Schwabauer suggested grouping the category to include public safety, GRIP funding, and staffing as a priority. Council Member Nakanishi requested there be an emphasis on gangs and gang suppression. Fiscal Sustainability In response to Mayor Johnson, Deputy City Manager Jordan Ayers explained that asset management was initially suggested by the Fire Department to implement a true equipment replacement program that would incorporate, not solely vehicles and equipment, but also tools they use on a daily basis, such as turn -out gear, and that both scheduling and funding be a part of the program. Council Member Kuehne stated that staff generally has an idea how long turn -out gear will last, based on how many washes reduce the fire retardant capability of the gear as well as damage during course of work, and that replacement should be incorporated into the budget. Mr. Ayers explained that historically the gear is replaced when necessary; however, funds are not typically set aside and allocated for future replacements. Mr. Schwabauer stated the concept of allocating funds and developing a replacement schedule applies across the board for all City assets, including buildings. Council Member Nakanishi suggested creating an ordinance that would require this concept so that the funding is secure and cannot be taken for other purposes. Mr. Schwabauer explained that the Council cannot tie the hands of future Councils, adding that a policy can be implemented, but it would be difficult to ensure a future Council would continue to abide by it. City Attorney Magdich stated that Council could implement a plan similar to the current reserve policy and create a new reserve for asset management, but she pointed out that, despite it being more formalized, it would still be subject to Council discretion. In response to Mayor Johnson, Mr. Ayers stated that the entire section on fiscal sustainability relates to policies on how the City operates on a fiscal standpoint including management, replacement, and funding of all City assets, as well as a strategic plan relating to information technology. Mr. Schwabauer suggested the information technology strategic plan be listed under "opportunity cost items" and that staff will develop a program for Council consideration. Council Member Kuehne expressed support for the suggestion, stating that such a policy is a sound business model that would enable the City to allocate money to replace its assets on a regular schedule. In response to Mayor Pro Tempore Chandler, Mr. Ayers stated that currently California Public Employees Retirement System (Cal -PERS) prepares an actuarial study each year to notify cities what the minimum payment will be. The City opts to make the minimum payment; although, Cal -PERS allows an option for cities to pay more toward the unfunded liability, which is risky. Mr. Schwabauer used the City of Stockton as an example of one who used bonds to pay a higher amount toward the liability and, after the significant loss at the Cal -PERS level, it now owes a substantial amount. In response to Mayor Johnson, Mr. Schwabauer stated that staff believes the Digital Infrastructure and Video Competition Act of 2006 funding may cover the replacement of the City's e -Records system in the next budget year, adding that it falls under the category of access to records relating to Council meetings and broadcasts. In response to Mayor Johnson, Mr. Schwabauer stated that projects, including the Hutchins Street Square Roof, erosion at Lodi Lake, and the Fire Station kitchen remodel, would be included under the fiscal sustainability and asset management category. In response to Council Member Kuehne, Mr. Schwabauer stated that on-going eastside issues include sidewalk gap closures and the alley program. He stated that Council Member Mounce 5 would like to see a housing rehabilitation program implemented on the east side, much like a business incentive program, in which those who improve their home would receive a rebate or incentive and have certain fees waived. In further response, Mr. Schwabauer stated that staff could put together a plan for Council consideration in a relatively short timeframe. He stated further research would be necessary to ascertain if an incentive program is possible to encourage less out-of-town home ownership and more homeowner occupied housing, adding that he and Council Member Mounce will be meeting with a local real estate representative to discuss potential programs. In response to Council Member Kuehne, Mr. Wood stated that the mission behind Habitat for Humanity is to acquire and rehabilitate a home with the purpose of placing a homeowner into the residence. Housing rehabilitation has been identified in the City's five-year plan for Community Development Block Grant (CDBG) funding and over the next three years, $150,000 will be applied toward code enforcement to assist property owners with minor code and life safety issues. In response to Mayor Johnson, Public Works Director Wally Sandelin stated that the City has an eight-year alley rehabilitation program to replace water lines, but it is currently on hold so as not to conflict with the water meter program. Once the meter program is complete, there will be a significant investment in the area, as the east side is a priority and has funding allocated. Mr. Schwabauer summarized the priorities and categories: 1) economic development for "shovel ready" land; 2) economic development and incentive program to focus on underutilized projects; 3) public safety, GRIP, training, and increase in staffing; 4) fiscal sustainability, asset preservation, Cal -PERS and Other Post Employment Benefits; and 5) east side rehabilitation, incentive programs, and infrastructure. Those without a category include: 1) homelessness; 2) downtown public WiFI and music; and 3) beautification of highway overpasses. Council Member Kuehne suggested adding a tourism category, and Mr. Schwabauer agreed, stating those that do not fit in that category will be placed in the "opportunity cost items" category C. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 7:43 p.m. ATTEST: Jennifer M. Ferraiolo City Clerk 6 LODI CITY COUNCIL Hutchins Street Square 125 South Hutchins Street, Lodi AGENDA— SPECIAL MEETING Date: March 31, 2015 Time: 6:00 p.m. — 9:30 p.m. For information regarding this Agenda please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 A. Call to Order / Roll Call B. Topic(s) B-1 City Council Goal Setting (CM) C. Adjournment Pursuant to Section 54956.2(a) of the Government Code of the State of California, this agenda was posted at a place freely accessible to the public 24 hours in advance of the scheduled meeting. Jennifer M. Ferraiolo City Clerk All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability -related modification or accommodation contact the City Clerk's Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Jennifer M. Ferraiolo at (209) 333-6702. Solicitudes de interpretacion de idiomas deben ser recibidas por lo menos con 72 horas de anticipacion a la reunion para ayudar a asegurar la disponibilidad. Llame a Jennifer M. Ferraiolo (209) 333-6702. **NOTICE: Pursuant to Government Code §54954. 3(a), public comments may be directed to the legislative body concerning any item contained on the agenda for this meeting before (in the case of a Closed Session item) or during consideration of the item. ** J:\CITYCLRK\FORMS\agn03-31-15.doc 3/25/15 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: City Council Goal Setting MEETING DATE: March 31, 2015 PREPARED BY: City Manager AGENDA ITEM B-01 Introduction: This goal setting process was originally conceived as an effort to flesh out the aspirational goals that appear in Lodi's Comprehensive Annual Financial Report (CAFR). However, as current staff realized the age of the goals, it became apparent that Council may want to reconsider its goals as well. The goals, whether left intact or revised, could then be used by Council to inform their prioritization of project goals. Discussion on March 31 will therefore start with a Council assessment of whether the existing goals adequately capture the current Council's aspirations. If they do, Council can then discuss a number of project specific goals and determine how those goals fit in to Council's aspirational goals. In the interest of quality discussion, tonight's meeting will not exceed 3 1/2 hours. Additional meetings will be scheduled as necessary. To inform the discussion, Staff requested that department heads and council members establish their three top project priorities and submit them for inclusion in this staff report. Although perhaps arbitrary, the three project limit is intended to force all involved to thin their list to an achievable level given current budget realities. The projects can then be prioritized according to their importance and funding options. Before we get there, however, it will be instructive to consider a brief history of Lodi's goals. A Brief History of Lodi's Existing Goals: Lodi's City Council considered its goals on an aspirational basis three separate times since the year 2000. As referenced, all of these goal sessions resulted in the setting of goals that were broadly aspirational, such as "Ensure a high quality of life and safe environment" rather than a desire to accomplish specific projects such as "Replace Fire Station 2." The first effort came in the form of adopting a City Mission Statement and occurred in 2001 as part of the 2002 Budget adoption process. At a shirtsleeve session on May 29, 2001, the Council revised its Mission Statement to read: "The City of Lodi's purpose is to enhance the quality of life for Lodi residents, reflecting our high community standards." The above statement of purpose was incorporated into the 2003 budget and has appeared on the cover page of every budget since 2003. The Council revisited its aspirations again as part of a 2003 Goal Setting effort over the course of several sessions. Minutes from those meetings are attached. The goals were ultimately incorporated into Lodi's APPROVED: Stephen Schwabauer, City Manager City Council Goal Setting March 31, 2015 Page 2 CAFR in 2003 and have also appeared in every CAFR since that date. They include four overarching goals, each with their own subsets. The goals are "to ensure": Goal A: A high quality of life and safe environment Maintain City's sense of community Provide for a balanced community Provide resources to maintain City's infrastructure Promote urban forestry Encourage public art, cultural and recreational opportunities Provide appropriate and sufficient City facilities Continue to use partnerships and alliances to advance City's objectives Goal B: An efficient and productive City organization Develop short- and long-range operational plans Develop effective records management program Develop policies which provide timely and competent customer service Enhance access to information through technology by implementation of an information systems strategic plan Provide employee training and education Evaluate telecommunications opportunities Attract, retain, and invest in a quality City workforce Improve customer service Goal C: Public trust Promote public relations and marketing efforts Ensure open, accessible public meetings Goal D: Development of the Lodi economy for a fiscally sound City organization Promote commercial and industrial economic base Provide a balanced budget and adhere to adopted budget policies Pursue efforts to be entrepreneurial Available Resources: Lodi's finances are clearly recovering after six difficult budget years. We have seen three years in a row of increasing total revenue and three years in a row of increasing unrestricted reserves. However, even with the backdrop of an improving economy, Lodi has still not recovered to its pre -Great Recession $44.5 million high revenue mark. As such, any funding choices would necessarily come at the expense of other projects or other services currently provided. It is important to note that City employees contributed significantly to the City's survival of the Great Recession. Employee counts fell from a high of 480 to a low of 378. In addition, employee net pay remains below 2008 levels by at least 7 percent in miscellaneous groups and 9 percent in public safety. Further, the City is down seven sworn police officers and browning out Engine 1 regularly. Any priority must therefore necessarily include consideration of those contributions. The majority of the projects listed below have no current funding available. For those projects, and projects that have partial funding, the City has little available resources to make them a reality in the near City Council Goal Setting March 31, 2015 Page 3 term. Given available resources Council may wish to consider prioritizing projects based on the value- added concept so common in today's competitive State and federal grant environment. Put simply, a project's priority could be impacted by its ability to pay for itself either in the form of concrete and measureable increased revenue, or in the form of project contributions from third parties such as business interests, non -profits or individuals. Lodi recently closed its 2013/14 fiscal year with $8.9 million in unrestricted and undesignated General Fund reserves. The lion's share of those reserves is subject to a Council Reserve Policy allowing half to be used to meet an economic crisis and the other to fund a physical crisis. The Reserve Policy is attached as Exhibit 1. That leaves Council $1.9 million in this fiscal year to address its General Fund priorities. In addition, our budget traditionally sets aside $435,000 per year for capital maintenance and $65,000 for information technology upgrades or replacements. Community Development Block Grant Funds for City projects add another approximately $600,000 to the mix. However, CDBG dollars must be spent in a target area or for the benefit of the target audience. Finally staff anticipates a one-time $776,000 sales tax revenue increase in Fiscal Year 2015/16 that could be used to meet any of the below priorities. Council has historically restricted one-time dollars to one-time needs such as addressing unfunded liabilities and capital maintenance. Staff recommends Council continue to hold that line. Addressing ongoing operating costs, such as positions, with one-time dollars exposes the City to losing those positions again when the one-time dollars are fully expended. Project Specific Goals: I. CITY CLERK: Replace e -Records system with updated records management system that would provide staff and the public reliable access to City records. E -Records is frequently offline, particularly after hours or on weekends when staff is not available to restart the system. Even when operable, search capabilities are limited as some records no longer have full -text search capabilities, while recently -added records no longer have field search capabilities. Staff is exploring two different options to replace e -Records: a. Microsoft SharePoint & Consultant — Cost estimate: SharePoint ($70,000 to $80,000)0n -going cost: None (maintained by in-house staff). b. E -Records Program — Cost estimate: Sample vendor — Laserfiche ($25,000 to $50,000*). On-going cost: $6,000 to $8,000 annual maintenance.* *Cost varies depending on how many public portal licenses are purchased. Project is currently unfunded but could be funded equally between General Fund and Utility Funds. II. CITY COUNCIL Mark Chandler a. Economic development/jobs/business attraction b. Workforce development c. Infrastructure/utilities to industrial parcels d. Downtown development/tourism/homeless solution City Council Goal Setting March 31, 2015 Page 4 Bob Johnson a. Establish a funded economic development incentive program b. Make Lodi's Fiber Optic System available to businesses c. Indoor Recreation Facilities Doug Kuehne a. Incorporate more commercial and industrial land into the City limits (and get it shovel ready). b. Beautify the downtown area (make it more inviting for more business to come to that area). c. Incorporate the Goals of Vision 2020 into any future goals for the City (College presence, Downtown Hotel, etc.). JoAnne Mounce a. East side improvement b. Gang suppression c. Downtown improvement d. Homeless Alan Nakanishi III. COMMUNITY DEVELOPMENT: a. Inspector Position: Add New Inspector Position to address increased inspection work load. This item will be self-funded through application fees. b. Industrial Annexation: Encourage and assist with Annexation of Industrial land in the Southeast area of Lodi. This project will largely be self-funded by project applicants. c. Second Gang Intervention Worker. Total cost of $88,000 with School District share of 50% reducing City cost to $44,000. IV. ECONOMIC DEVELOPMENT: a. Facilitate the successful disposition and reuse of the General Mills property No additional cost. This effort will be accomplished by existing staff. b. Investigate the feasibility of operating a fiber network for Economic Development The Electric Utility will contract with an industry professional to conduct an analysis. Estimated cost range: $20,000-$50,000. c. Establish a Downtown Property -Based Business Improvement District (PBID) No additional cost. This effort will be accomplished by existing staff. Implementation of this goal is expected to reduce City exposure to increased maintenance costs over time. City Council Goal Setting March 31, 2015 Page 5 V. ELECTRIC UTILITY An Organizational Checkup is being completed with the assistance of Hometown Connections, the utility services subsidiary of the American Public Power Association that provides public power utilities with consulting support in the areas of organization assessment, strategic planning, governance development, and staffing. This endeavor is a quick and cost-effective assessment of utility management and operations, based on best practices in the public power sector. The assessment addresses the following key areas: • • • • • • Customer outreach & communications Customer service, including utility billing Utility programs Power supply Distribution operations Employee safety • • • • Governance Strategic planning Rates Administration, accounting & finance Technology Human resources The Organizational Checkup report will provide realistic recommendations and is the starting point for EU's comprehensive strategic planning process that can be integrated into the City Council's goals and objectives. The top three priorities that have been identified are as follows: a. 10 -year Distribution System Maintenance CIP $20 million: Safety, reliability and affordability are key components to operate an electric utility. In order to maintain our excellent safety record, mitigate outages, and ensure cost effectiveness, EU staff has developed a 10 - year Distribution System Maintenance Capital Improvement Plan (CIP) as part of the department's financial model. Staff will continue to work toward completion of the tasks outlined in the CIP at the lowest cost possible, along with updating the financial model and reviewing the rate schedules on an annual basis to ensure funding is available while maintaining credit worthiness. (See Exhibit 2, Electric Utility 10 -Year CIP) b. Increase Customer Relations and Marketing Efforts: The residents and businesses in Lodi are the owners of the utility, and it is our responsibility and desire to become an "energy partner" with our customer/owners. In order to do so, we must learn what they need and provide the necessary information to assist them in understanding how to best utilize the energy conservation programs designed to save energy and money while remaining compliant with State and Federal mandates. c. Succession Planning: The EU has a number of individuals eligible to retire in the next few years, and there are very few qualified candidates in the electric utility industry. In preparation for this a number of organizational changes have taken place over the past five years to improve operational efficiency and establish career paths within the utility. This is an ongoing effort that staff will continue to pursue and evaluate along with leveraging outside agencies for support when needed. VI. FIRE a. Return Browned -Out Fire Engine 1 to Full Service: The total estimated cost of returning the browned -out Engine 1 back to full service for one year is $365,000 in additional overtime. The cost to hire nine firefighters (one captain, engineer, and firefighter for three shifts) is estimated at $1.3 million annually. City Council Goal Setting March 31, 2015 Page 6 b. Increase Lodi Fire Department Staff professional development and succession planning programs: The fire department staff strives to remain at the leading edge of the fire profession and going beyond the minimum standards to exceed departmental expectations. This can only occur with the continued education, training, professional development and succession programs. i. 2/3 of the command staff will retire in the next 5 years ii. Over half of the Captain/supervisors will retire in the next 5 to 10 years iii. 50% of the Department will assume new positions and responsibilities c. Explore, evaluate and implement a comprehensive asset management and savings plan: i. Communications: Complete the radio inventory and follow through with the purchase/installation of all front-line and reserve apparatus with APEX dual -radios. Total cost for upgrades on the communication systems is $75,600. ii. Self -Contained Breathing Apparatus (SCBA) and other imperative safety equipment: Within the next 5 to 10 years the City of Lodi Fire Department will have to replace over 40 SCBA equipment pieces. Each device can range between $6,000 - $8,000 (a total cost of replacement between $240,000 and $320,000). iii. Develop adequate funding for facilities maintenance, replacement and repair is essential to the safety and well-being of all Lodi Fire Department personnel. VII. INTERNAL SERVICES DIVISION a. Complete Implementation of Tyler and add Functionality: Funded b. Develop and Implement Comprehensive Budget and Financial Policy: Unfunded i. IT ($4 million at 6/30/14) ii. Vehicles ($2.4 million at 6/30/14) iii. OPEB ($16.9 million at 1/1/14) iv. Buildings (See Exhibit 3, Public Works Project Priorities) v. PERS ($93.9 million at 6/30/13) c. Develop City-wide Information Technology Strategic Plan: Unfunded VIII. LIBRARY a. Redesign children's area. At present, children's picture books are located in five sections of the children's area, and we need interesting/fun structures within the children's section to attract children's attention in that area and to stimulate their tactile senses and imagination. The redesign is estimated to cost $22,000. b. Digitize Lodi News: Digitize the Lodi News Sentinel newspapers from 1880 to present. Currently, these newspapers are on 600 roles of microfiche, and our microfiche reader does not work properly. Replacement of the microfiche reader would cost $7,000 while digitizing the newspapers would cost $30,000 and the newspapers would be available online, anywhere in the world. It would provide all of Lodi's history to its citizens for access in their homes, and would save countless hours of staff having to look up information on microfiche. City Council Goal Setting March 31, 2015 Page 7 c. Security: Enclose the Library's back door and the book drop to protect the space from drug use and criminal activity. Cost approximately $6,000. IX. PARKS AND RECREATION a. Continue phased roof restoration project at Hutchins Street Square: Total remaining cost: $288,000 to protect a $15 million asset for the next 10-15 years. Roof sections A&B completed (Phase 1). Phase 2 needed (Area C, $165,000), then Phase 3 (Area E, $58,000), Phase 4 (Area D, $45,000) and Phase 5 (F&G, $20,000). Cost estimates provided by the Garland Company (site visit Nov. 2013, report updated Feb. 10, 2014). b. Funding for erosion study/mitigation at Lodi Lake Park and grant writing: Focus would be two areas: Pigs Lake/Nature Area and portion between Rotary and Youth Area locations. Goal would be to determine cause of excessive erosion and mitigation measures that may be eligible for grant funding. Estimated to cost up to $50,000, but that likely would not include any significant mitigation measures. Having the study/solution to back a grant application is our best opportunity to receive outside funding. The City submitted applications for State grant funding in 2008 and 2011 without success. c. Parking lot maintenance/resurfacing (in order of priority): i. Softball Complex (2 -inch Petromat Overlay) - $130,000 ii. Salas Park (2 -inch Petromat Overlay) - $300,000 iii. Katzakian Park (Slurry/Re-Paint) - $15,000 iv. Grape Bowl North Lot (Slurry/Re-Paint) - $120,000 v. Kofu Baseball/Skate Park Lot (2 -inch Petromat Overlay) - $50,000 vi. Nature Area paved path slurry seal - $20,000 d. Playground equipment replacement: $25,000 would be sufficient seed money for a community build program at Candy Cane Park. The only playground apparatus at that park is deteriorating and needs new path of travel, plus replacement. $25,000 would pay for materials and site supervisor, with community providing labor. Overall, $100,000 would assist with Candy Cane and demolition of existing south playground area at Emerson Park, which is not ADA accessible and equipment is deteriorating, and replacement playground equipment. X. POLICE a. Increase sworn and civilian staffing: (add 8 sworn + 5 civilian staff) — Sworn increases include one (1) sergeant (Professional Standards Officer — IA, training, backgrounds, internal audits, policy revision, etc. — replacing a PT civilian position); one Corporal (P1O, public affairs, digital media, community policing); and six (6) police officers (patrol, traffic, investigations, and downtown bike patrol). Estimated additional sworn cost: $1.2 million. Civilian increases include one (1) additional Dispatch/Jail Supervisor; one (1) Crime Analyst (replacing a PT civilian position); one (1) Community Services Officer for crime prevention, neighborhood watch, business watch, etc.; one (1) additional Records Clerk; and (1) additional Assistant Animal Services Officer. Estimated civilian cost: $425,000. Estimated total (sworn & civilian based on 2014-15 compensation): $1,625,000. Source: General fund. City Council Goal Setting March 31, 2015 Page 8 b. Replace CAD/RMS system: Current Sungard OSSI system performs poorly. Estimated replacement cost: $1 million to $1.5 million one-time expense, or explore a lease purchase option. Possibly no additional annual maintenance costs. Source (partial): annual maintenance savings from termination of Sungard contract (-$140,000), plus savings from now -defunct prisoner transportation program (--$50,000, or combined total of approximately $190,000/year). c. Equipment and technology replacement and enhancements: Increase annual vehicle replacement fund contribution to $300,000 (additional $250,000 annually); establish an internal service fund for computer and equipment replacements ($150,000-$250,000 additional/year); new PD website (-$25,000-$50,000 one-time); dash cameras ($200,000 one-time); body cameras ($90,000 one-time, plus $40,000 annually); implement digital video + evidence storage (additional -$100,000-$150,000/year); additional training (additional $50,000/annually); firearms replacement ($50,000 one-time). Total first year cost: $865,000- $1,040,000. Estimated additional annual cost: $590,000-$740,000. Source: General fund. XI. PUBLIC WORKS Public Works project priorities are detailed in Exhibit 3 and are categorized as follows: i. Facilities iv. Fleet ii. Streets v. Transit iii. Utilities vi. White Slough Conclusion: As Council can see, Lodi's needs far exceed available resources. It is hoped that this session can serve as a framework for setting forth a roadmap for Lodi's most important projects while at the same time finding some projects we can take off the list. Stephen Schwabauer City Manager Attachments: Exhibit 1 — General Fund Reserve Policy Exhibit 2 — Electric Utility 10 Year CIP Exhibit 3 — Public Works Project Priorities RESOLUTION NO. 2010-86 A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING A GENERAL FUND RESERVE POLICY WHEREAS, maintaining General Fund reserves is fiscally prudent; and WHEREAS, reserves can mitigate the financial exposure of catastrophic events and actions from outside entities that affect our revenue streams; and WHEREAS, reserves reflect positively on the creditworthiness and prudent management of the City; and WHEREAS, the City of Lodi Budget and Finance Committee has drafted the attached General Fund Reserve Policy for Council adoption. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby approve the General Fund Reserve Policy attached as Exhibit A. Dated: June 2, 2010 hereby certify that Resolution No. 2010-86 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 2, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None .ne foregoing document is certified to be a correct copy of the original on file in the City Clerk's Office. Jennifer M. Robison .Assistant City Clerk, City of Lodi )ated: 9glitA42-IVA61-4 /0 2010-86 RA HL City Clerk EXHIBIT 1, Page 1 of 3 EXHIBIT 1, Pa of 3 City of Lodi General Fund Reserve Policy Purpose of Reserve Policy Adequate designations of reserves --funds set aside for various legitimate purposes ---are critical to the successful and stable, short- and Tong -term operation of the City of Lodi. Adequate reserves in the General Fund ensure that the City is able to respond to emergencies and continue providing services to the citizens of Lodi. Adequate reserves ensure that the City will have sufficient funding available to meet its operating, capital and debt service obligations. Pursuant to Statement No. 54 of the Governmental Accounting Standards Board (GASB) — Fund Balance Reporting and Governmental Fund Type Definitions, unrestricted fund balance is composed of funds that may be classified as committed, assigned or unassigned. Committed fund balance represents those funds that are constrained by a limitation imposed by the governing body of a govemment upon itself as to the use of those funds. Assigned fund balance represents the City Council's intention to use funds for a specific purpose. Unassigned fund balance represents the remainder of fund balance after accounting for all reserved amounts. Provisions of GASB Statement No. 54 are effective for reporting periods beginning after June 15, 2010. Beginning with the budget for Fiscal Year 2010/11, the following General Fund Reserves shall be funded, as funding is available. Committed Fund Balance General Fund Reserve — Catastrophic Reserve • To maintain the ability of the City to meet operational expenses during times of declared emergency or major catastrophe, the City shall maintain a committed General Fund balance of a minimum of 8% of annual General Fund revenues. It is recognized that during a time of emergency, the City will need to expend more resources than normal operations dictate to meet the community's needs. In addition to an increased level of expenditure, the tax base of the City may be impaired after a major catastrophic event. This reserve shall be exclusive of all other reserves. This reserve may only be drawn upon pursuant to an emergency as declared under the Lodi Municipal Code. • If the General Fund — Catastrophic Reserve amount falls below 5% of annual revenue, the City Manager shall prepare a plan within three months of approval of the Comprehensive Annual Financial Report (CAFR), commencing with the CAFR for FY 2009/10, to restore the 5% level within 12 months and the 8% level within 24 months. • This reserve is not intended for normal unanticipated expenditures and shall be funded before all other committed General Fund reserves. EXHIBIT 1, Page 3of3 General Fund Reserve — Economic Reserve • To maintain the City's economic viability and to meet seasonal cash flow shortfalls, the City shall maintain a committed General Fund Reserve — Economic Reserve balance of a minimum of 8% of annual General Fund revenues. Although 8% is the minimum, because this reserve is intended to levelize economic cycles from year to year, the reserve should have a higher amount to cushion the cyclical effects of the economy. This reserve shall be exclusive of all other reserves. Funding may only be disbursed based upon a resolution of the City Council. • Funding of the General Fund Reserve — Economic Reserve will begin in the fiscal year following full funding of the General Fund Reserve — Catastrophic Reserve. Provisions below regarding action required if the General Fund Reserve — Economic Reserve falls below 5% of General Fund revenues shall only apply after the reserve has been funded at the minimum 8% level. • Once fully funded, if the General Fund Reserve — Economic Reserve falls below 5% of annual revenue, the City Manager shall prepare a plan within three months of approval of the Comprehensive Annual Financial Report, commencing with the CAFR for FY 2009/10, to restore the 5% level within 24 months and 8% within 48 months. • Once fully funded, in no case shall the General Fund Reserve - Economic Reserve fall below 5% of annual General Fund revenue for greater than a continuous 24 -month period. Assigned Fund Balance Once Committed Reserves are fully funded, the City Council may establish Assigned Reserves for designated purposes. Assigned Reserves reflect Council's intent as to the use of funds. Once assigned, funds may only be released by resolution of the City Council. Lodi Electric Utility 10 -Year Capital Improvement Program Capital Oullny {161) 13/14 14/15 15715 18117 1703 18110 1920 20121 21123 27/23 23124 Distribution Capacity Program 5 $ 400,000 $ 400,000 5 250.000 $ 250,000 $ 250,000 5 250,000 S 125,000 $ 125,000 $ 125,000 5 125,000 12kV Underground Improvements (inc cable replacement) 125,000 $ 500,000 $ 480,000 $ 480.000 $ 480,000 $ 480,000 5 480,000 5 480,000 5 480,000 $ 480,000 5 480,000 Streetlight Grounding and Fusing 5 250,000 $ 507,160 $ 240,000 $ 240.000 5 240,000 5 - 230 kV Interconnection 5 50,000 $ 250,000 $ 250,000 $ 50.000 $ 50,000 5 - 12 kV Overhead Maintenance (inc reconductor and pole replacement) 3 10,000 $ 750,000 $ 325,000 $ 325.000 $ 325,000 $ 325,000 $ 325,000 $ 325,000 $ 325,000 $ 325,000 5 325 000 Ops Center Ergo Imp 5 5 Substation Improvements: 5 Rpl BK2 @ IGllelea $ 1,200,000 5 Rewind old BK2 $ - $ 600.000 5 Battery @Industrial $ 35,000 5 Replace 60kV PCV Oil Breaker w/0F6 breaker $ 65,000$ 65,000 5 Replace McLane OCB 6021 w/SF6 Breaker 5 55,000 5 Rpl Killelea BK1 with rewound bank $ 160,000 5 Rewind old IGllelea BK1 $ 600,000 5 Rpl Henning OCB 6041 w/SF6 Breaker 5 65,000 Rpl 5 - 12kV breakers and bus tie @ McLane - 125,000 5 New Corp Yard @ Industrial 5 $ - MSC Imp $ - $ 100.000 $ 100.000 $ 150,000 5 100,000 5 250,000 $ 250,000 5 ISD Equip Move (annex project) $ 629,200 Annex Chiller $ 544,150 Other 0 50,000 TOTAL 0 405.000 5 2.936,310 5 3.060,000 5 2,100,000 $ 2,949,200 $ 1,345,000 $ 1,305,000 $ 1,160,000 $ 930,000 $ 930,000 5 930,000 Vmhlcla*JR oil 1n0 Stock Vehicles/Rolling Stock TOTAL CAPITAL 13/14 14115 16115 16/17 37116 18719 15520 20/21 21552 22123 23/24 $ 550,000 $ 165,000 $ 335,000 $ 225,000 $ 60,000 $ 400,000 5 450,000 $ 415,000 $ 475,000 $ 100,000 $ 100,000 $ 1,035,000 $ 3,151,310 $ 3,395,000 $ 2,325,000 5 3,009,200 5 1,745,000 $ 1,755.000 $ 1,595,000 $ 1,405,000 $ 1,030,000 $ 1,030,000 EXHIBIT 3 Category Project Title Project Tine Project Description Recommended P026044 Estimated Costs FY 15/16 FY16/17 Funding Sourcefs) Funding Availability Capital Projects 11003,0,0 80001 Rod Rehet401lq Fre Stance Mg. 1 Igdeba ra0M41 City Hall Awning Replacement Resurface Finance Parking Lot 501.6 enuring area 0 mvb500+00e4b4d4 itet4d41 m,aslg kfi'nm Replace existing Awnings Remove ending AC and replace with new AC and new ADA packing stalls $ 170,000 $ 011,005 S '00.0D0 6 10,000 $ 150,000 General Fond General Fund General Fund General Fund PM0ding Pending Pending Pending .bodes Su0005,ere hyrax 2e4000 A71A lrrpe.ternmen Resurface City Hall Parking Lot (between Walnut & Oak) Resurface Hutchins Street Square Parking Lots Street Maintenance Church Street Resurfacing (Lodi to Ketileman) Capital Projects 2015 Cr 5pd 61d110e015016Txearetaexap ^_S ^�...e YU M) Ravine Fre400W 011104 re Harney Lane Grade Separation Lodkefom Street Improvements (Stockton Street to Cherokee Lane) Dol 01e00uel ADA med00a60n0l45L)pr 5t00p4. 44s44A0A dab L 270,000 CDBG north paddng lot Resurface ecdsting AC or utaitiae microsurfadng to rehab paved surface, $ 70,077 General Fund I CDBG upgrade ADA stalls Renovate surface of north and south parking lots 1L 5 1AS.0g General Fund Resurface street using cape seal or micro sealing - including the instalalon of t $ 200200 Street Fund /Gas Tex new ADA ramps as needed. R00060 widow Meeh using nigerRyd taikr..1 01.40.01 S IOA7np,_5 707.007 Mira 47G4.:fa 1,000,007 tN1100 01144 Reeyie[a I.455t.a.loan. mime 0040464 PbtNr .anal 001304 d0100 1 0 ova n. 0044 401114:040 n (Sa4 LW) Construct four lane overhead structure at UPRR crossing of Harney Lane and widen roadway to four lanes from Hutchins to Stockton Streets Widen Lockeford Street to 3 lanes - install haft signal at Stockton & Lockeford SCent LGner 5ecenenle R444 S4000 RWMIs tKdMmMe Lows 10 Wog F.304 Alley Improvements Tte�ih '40011000065 R604f 1 repair eaetkig rgigarravg 0atMw whet 104 ins Dower to rrog due to high traffic volumes in the area Resurface alleys based on condition & location relative to future meter program project locations Left100 Ir1rsos kthe0t 0l1L0d00fd. T0hggr11Wh 04.551 Ramey / Mils Guild Vidor Tumer7Gtl0rrel Limedmg ar+efwr¢, re{iaopmepl 44550 W Opp CifoO es P00do0 6111.0rsocit Upgrade 117htrnp en $2041612.4 $ 50,000 $ 50,000 $ 16,000,000 $ 1,500,000 Street Fund Various Sources RSTP Available Pending Pending Available Alethia 610[41410M Avaleble Available Pending $ 350,000 $ 125,000 Not identified CDBG Not Available Avaleble army Ytl44*rub 6' the inirmolemom of Me Len4 Mid Laclebtd, Tekey and VCR fO edd a left tem phase. Install Traffic Signal at Ramey Lane and Mills Avenue Install Traffic 3+0001 at Guild and Vidor Road Ieetay Tralk SouI al Turn, Rom rind Cai4mel.. S..!I Conley....glop Cpl ori wdLil for WWI r11401 lap b.er64 f mdng replacement work performed by contractors - patching by City staff. Ir1d114 ADA MIMI., 2ierns10sabOns T i 4 S 400,000 .$ 40,000 7: 340,000 $ 40,000 1: 400.000 $ 350,00 Gas Tax Gas Tax / TDA Streets 9epde5F4s4 Maambe K)70410064010$ 2.0 Available Available Ave$eble Andebia 000104 ridawyk al ram .lasfbora wue rcea ami %kers& pressure deaning Project P0. 00-5 VIM 5 4rrm inknanee Water/Wastewater/Storm Y.l4.v04 Park d Shelly Mt. 00er010 00 ]rump Replacement Shady Aires Slormwaler Pump Station Trash Handling Facility ala errVataf Relviattlairtfon Shoo and CNG Fueling Upgrade CNG fueling facilities Purchase and Install lifts for new buses Automatic Vehide Locator (AVL) System Acquire severed parking lot for transit buses White Slough Capital Projects BL s Stop tmpw'wnnp Projects Slmcural Concrete Corrosion Repair Rebelltreo ujighh Ammon /morm arm. pressure deaning of existing surface to remove gum, stains, etc AmlagyI vo and meet used pew% act roaeg eppdid 061370064 60,0 atm..0A mlEtsw ars eras andekdypdm Oormrmt 514100 thereby rew4keg replacement mum mr024M morrow M 14tg0e 0610 one cynic ubbrin from pal doefre50 lv 7b1010. 201,3 hrha0on grreO rnv0 P auttNgl4of..32.24mef....1 ar G0grYnlokke rid 1v410010 4041{1in Vp41. Replace cis x0lrgfoa.f control pad& replace fastag dispensers and activate Mow-fdl dispensers. Purchase and Mobil into the shop floor a new lift system that will facilitate servicing the new buses that are loo low to the ground for the existing portable Iib equipment Install autamative vehicle locator equipment on 5 buses to facilitate tracking and scheduling of fixed route and Dial -A -Ride services. Assess leasibiily of acquiring a seared parking tet for Irani buses near the milli -modal station [V 0arsy.g structure. Proceed with acquisition and r:o�impro vin. Supplismenng Dosceivce,Stew Pr.s1 Ultraviolet (UV) Disinfection Facilities Upgrade Coarse Screening Faolitiea Supervisory Control and Dab Acquisition (SCALA) and Instrumentation Factaies Upgrades Otoce 4 Ms:10 a06byalfgpelq1.tt' yal arts.103 along the fixed route system. Structural concrete facflities constructed in 1967 are corroded and reinfordng Med is exposed requmng at the headwarks and the Influent channels to the pdm yclaare. Immediate repalnrnre 100. Too costing reedy Ian pmts 00410g 0i0 do MR prtno. seted.nt l.Qudeery h the .064f 00n14Pr0 operation, A third ung is neaded. UV facilities are 10 years rid and are malnlenanee intensive and inefftdent 6700 a power consumption perspective. Replacing the LN racks and bulbs will lower maintenance and powers 00050. wevd.011.051.tandnds lea w.alnowfr •..terms th 14 n hofmlo ammo arra hr+ mmcr VPefroan 01 ms primaryo4600 TMrwNlhg Wel ,Cmern are r1T wolf :1100 m perform 0011.60.30 00 60 ,ere 1g.nd, 71e001are ere mromm te b.gu.e1 txe0kd0yn tool aro m003044 Wont*. Tlw 1.0,010 o0e1d add 000,00 6000 now inoarM0 awl wallrlded 14646 du.n,n5 (1044..0 updmem de* od000g 0edwoeki. hnprvan0 almnl odorat4.nt4e00rp *sing kawlar4o44Aar5036ee1ed1 /*mince oldrbcrul,rna 14.11cre3,r40gy 02003 in .0 4rsoa of 40 brow. sod .606.11e0umenGlan and controls, $ 50,000 $ 50,000 2 $-�72ri Dog $ S WA00 S 50,000 1 • 505,605 $ 10,000 $ 10,000 3 $ 50,000 5 50,000 1 $ 400,000 2 $ 900,000 TDA / Measure K TDA ihs0c Ban440.1643444 Fuld General Fund General Fund_ Stomtwater Stormwaler Avatable Avblebla 044 0246 444$444 Pending Rrbr9 Available Avaflable 2 2 3 $ 2,000,000 $ 250,000 1 100.000 $ 300,000 $ 110,000 3 30,000 $ 150,000 $ 150,000 $ 2,500,000 Wastewater TDA TDA Prop 1B /TSSSDRA TDA FTA / TDA Waslewaler Available Available Avalable Available Aveleble Available Avagable 2 4 $ 1,300,000 $ 2,000,000 2 S 3,500,000 $ 3,000,000 $ 4,000,000 Wastewater Wastewater Wastewater Available Avalable Avelable Available 1 LODI CITY COUNCIL Hutchins Street Square 125 South Hutchins Street, Lodi AGENDA — SPECIAL MEETING Date: May 26, 2015 Time: 6:00 p.m. — 9:00 p.m. For information regarding this Agenda please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 J:\CITYCLRK\FORMS\agn05-26-15.doc 5/5/15 A. Call to Order / Roll Call B. Topics(s) B-1 City Council Goal Setting (CM) C. Adjournment Pursuant to Section 54956.2(a) of the Government Code of the State of California, this agenda was posted at a place freely accessible to the public 24 hours in advance of the scheduled meeting. 1 Jennifer M. Ferraiolo City Clerk All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability -related modification or accommodation contact the City Clerk's Office as soon as possible and at least 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Jennifer M. Ferraiolo at (209) 333-6702. Solicitudes de interpretacion de idiomas deben ser recibidas por to menos con 72 horas de anticipacion a la reunion para ayudar a asegurar la disponibilidad. Llame a Jennifer M. Ferraiolo (209) 333-6702. **NOTICE: Pursuant to Government Code §54954.3(a), public comments may be directed to the legislative body concerning any item contained on the agenda for this meeting before (in the case of a Closed Session item) or during consideration of the item. ** J:\CITYCLRK\FORMS\agn05-26-15.doc 5/5/15 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: City Council Goal Setting MEETING DATE: May 26, 2015 PREPARED BY: City Manager AGENDA ITEM B-01 Background: At a special meeting on March 31 staff provided the Council with a brief history and an overview of the existing aspirational goals adopted by prior Council's. As indicated in the attached staff report (Exhibit 1), due to the age of the goals, it had become apparent that Council may want to reconsider them. Staff also discussed available resources and suggested project goals be prioritized according to their importance and options for funding. The Council and department heads then presented and discussed their current top project priorities. At the conclusion of the formal presentation, to simulate project prioritization based on limited resources meeting attendees were invited to participate in a sticker voting exercise which included placement of colored dots next to the projects listed on two poster boards placed at the front of the room. Council members each received four red stickers, members of the public received two blue stickers and department heads received two green stickers. Subsequent to the meeting, staff reviewed the poster boards, tabulated the votes and identified eight general project categories (Exhibit 2). The project categories include: Asset Preservation; Downtown; Economic Development; Fiscal Sustainability; Gangs; Homeless; Public Safety; and Other. The projects with the highest number of votes are within the categories of Public Safety, Downtown and Economic Development. Present Situation: Tonight's follow up meeting is to provide the Council the opportunity to set a new priority list, taking into consideration the input received from the Community and departments at the first meeting. Attachments: Exhibit 1 - March 31 Staff Report Exhibit 2 - March 31 Voting Results Stephen Schwabauer City Manager APPROVED: Stephen Schwabauer, City Manager TM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: City Council Goal Setting MEETING DATE: March 31, 2015 PREPARED BY: City Manager I Exhibit I Introduction: This goal setting process was originally conceived as an effort to flesh out the aspirational goals that appear in Lodi's Comprehensive Annual Financial Report (CAFR). However, as current staff realized the age of the goals, it became apparent that Council may want to reconsider its goals as well. The goals, whether left intact or revised, could then be used by Council to inform their prioritization of project goals. Discussion on March 31 will therefore start with a Council assessment of whether the existing goals adequately capture the current Council's aspirations. If they do, Council can then discuss a number of project specific goals and determine how those goals fit in to Council's aspirational goals. In the interest of quality discussion, tonight's meeting will not exceed 31/2 hours. Additional meetings will be scheduled as necessary. To inform the discussion, Staff requested that department heads and council members establish their three top project priorities and submit them for inclusion in this staff report. Although perhaps arbitrary, the three project limit is intended to force all involved to thin their list to an achievable level given current budget realities. The projects can then be prioritized according to their importance and funding options. Before we get there, however, it will be instructive to consider a brief history of Lodi's goals. A Brief History of Lodi's Existing Goals: Lodi's City Council considered Its goals on an aspirational basis three separate times since the year 2000. As referenced, all of these goal sessions resulted in the setting of goals that were broadly aspirational, such as "Ensure a high quality of life and safe environment" rather than a desire to accomplish specific projects such as "Replace Fire Station 2." The first effort came in the form of adopting a City Mission Statement and occurred in 2001 as part of the 2002 Budget adoption process. At a shirtsleeve session on May 29, 2001, the Council revised its Mission Statement to read: "The City of Lodi's purpose is to enhance the quality of life for Lodi residents, reflecting our high community standards. " The above statement of purpose was incorporated into the 2003 budget and has appeared on the cover page of every budget since 2003. The Council revisited its aspirations again as part of a 2003 Goal Setting effort over the course of several sessions. Minutes from those meetings are attached. The goals were ultimately incorporated into Lodi's APPROVED: Stephen Schwabauer, City Manager City Council Goal Setting March 31, 2015 Page 2 CAFR in 2003 and have also appeared in every CAFR since that date. They include four overarching goals, each with their own subsets. The goals are "to ensure": Goal A: A high quality of life and safe environment Maintain City's sense of community Provide for a balanced community Provide resources to maintain City's infrastructure Promote urban forestry Encourage public art, cuiturai and recreational opportunities Provide appropriate and sufficient City facilities Continue to use partnerships and alliances to advance City's objectives Goal B: An efficient and productive City organization Develop short- and long-range operational plans Develop effective records management program Develop policies which provide timely and competent customer service Enhance access to information through technology by implementation of an information systems strategic plan Provide employee training and education Evaluate telecommunications opportunities Attract, retain, and invest in a quality City workforce Improve customer service Goal C: Public trust Promote public relations and marketing efforts Ensure open, accessible public meetings Goal D: Development of the Lodi economy for a fiscally sound City organization Promote commercial and industrial economic base Provide a balanced budget and adhere to adopted budget policies Pursue efforts to be entrepreneurial Available Resources: Lodi's finances are clearly recovering after six difficult budget years. We have seen three years in a row of increasing total revenue and three years in a row of increasing unrestricted reserves. However, even with the backdrop of an improving economy, Lodi has still not recovered to its pre -Great Recession $44.5 million high revenue mark. As such, any funding choices would necessarily come at the expense of other projects or other services currently provided. It is important to note that City employees contributed significantly to the City's survival of the Great Recession. Employee counts fell from a high of 480 to a low of 378. In addition, employee net pay remains below 2008 levels by at least 7 percent in miscellaneous groups and 9 percent in public safety. Further, the City is down seven sworn police officers and browning out Engine 1 regularly. Any priority must therefore necessarily include consideration of those contributions. The majority of the projects listed below have no current funding available. For those projects, and projects that have partial funding, the City has little available resources to make them a reality in the near City Council Goal Setting March 31, 2015 Page 3 term. Given available resources Council may wish to consider prioritizing projects based on the value- added concept so common in today's competitive State and federal grant environment. Put simply, a project's priority could be impacted by its ability to pay for itself either in the form of concrete and measureabie increased revenue, or in the form of project contributions from third parties such as business interests, non -profits or individuals. Lodi recently closed its 2013/14 fiscal year with $8.9 million in unrestricted and undesignated General Fund reserves. The lion's share of those reserves is subject to a Council Reserve Policy allowing half to be used to meet an economic crisis and the other to fund a physical crisis. The Reserve Policy is attached as Exhibit 1. That leaves Council $1.9 million in this fiscal year to address its General Fund priorities. In addition, our budget traditionally sets aside $435,000 per year for capital maintenance and $65,000 for information technology upgrades or replacements. Community Development Block Grant Funds for City projects add another approximately $600,000 to the mix. However, CDBG dollars must be spent in a target area or for the benefit of the target audience. Finally staff anticipates a one-time $776,000 sales tax revenue increase in Fiscal Year 2015/16 that could be used to meet any of the below priorities. Council has historically restricted one-time dollars to one-time needs such as addressing unfunded liabilities and capital maintenance. Staff recommends Council continue to hold that line. Addressing ongoing operating costs, such as positions, with one-time dollars exposes the City to losing those positions again when the one-time dollars are fully expended. Protect Specific Goals: I. CITY CLERK: Replace e -Records system with updated records management system that would provide staff and the public reliable access to City records. E -Records is frequently offline, particularly after hours or on weekends when staff is not available to restart the system. Even when operable, search capabilities are limited as some records no longer have full -text search capabilities, while recently -added records no longer have field search capabilities. Staff is exploring two different options to replace e -Records: a. Microsoft SharePoint & Consultant — Cost estimate: SharePoint ($70,000 to $80,000)0n -going cost: None (maintained by in-house staff). b. E -Records Program — Cost estimate: Sample vendor — Laserfiche ($25,000 to $50,000*). On-going cost: $6,000 to $8,000 annual maintenance.* *Cost varies depending on how many public portal licenses are purchased. Project is currently unfunded but could be funded equally between General Fund and Utility Funds. II. CITY COUNCIL Mark Chandler a. Economic development/jobs/business attraction b. Workforce development c. Infrastructure/utilities to industrial parcels d. Downtown development/tourism/homeless solution City Council Goal Setting March 31, 2015 Page 4 Bob Johnson a. Establish a funded economic development incentive program b. Make Lodi's Fiber Optic System available to businesses c. Indoor Recreation Facilities Doug Kuehne a. Incorporate more commercial and industrial land into the City limits (and get it shovel ready). b. Beautify the downtown area (make it more inviting for more business to come to that area). c. Incorporate the Goals of Vision 2020 into any future goals for the City (College presence, Downtown Hotel, etc.). JoAnne Mounce a. East side improvement b. Gang suppression c. Downtown improvement d. Homeless Alan Nakanishi III. COMMUNITY DEVELOPMENT: a. Inspector Position: Add New Inspector Position to address increased inspection work load. This item will be self-funded through application fees. b. Industrial Annexation: Encourage and assist with Annexation of Industrial land in the Southeast area of Lodi. This project will largely be self-funded by project applicants. c. Second Gang Intervention Worker. Total cost of $88,000 with School District share of 50% reducing City cost to $44,000. IV. ECONOMIC DEVELOPMENT: a. Facilitate the successful disposition and reuse of the General Mills property No additional cost. This effort will be accomplished by existing staff. b. Investigate the feasibility of operating a fiber network for Economic Development The Electric Utility will contract with an industry professional to conduct an analysis. Estimated cost range: $20,000-$50,000. c. Establish a Downtown Property -Based Business Improvement District (PBID) No additional cost. This effort will be accomplished by existing staff. Implementation of this goal is expected to reduce City exposure to increased maintenance costs over time. City Council Goal Setting March 31, 2015 Page 5 V. ELECTRIC UTILITY An Organizational Checkup is being completed with the assistance of Hometown Connections, the utility services subsidiary of the American Public Power Association that provides public power utilities with consulting support in the areas of organization assessment, strategic planning, governance development, and staffing. This endeavor is a quick and cost-effective assessment of utility management and operations, based on best practices in the public power sector. The assessment addresses the following key areas: • . • . Customer outreach & communications Customer service, including utility billing Utility programs Power supply Distribution operations Employee safety . Governance Strategic planning Rates Administration, accounting & finance Technology Human resources The Organizational Checkup report will provide realistic recommendations and is the starting point for EU's comprehensive strategic planning process that can be integrated into the City Council's goals and objectives. The top three priorities that have been identified are as follows: a. 10 -year Distribution System Maintenance CIP $20 million: Safety, reliability and affordability are key components to operate an electric utility. In order to maintain our excellent safety record, mitigate outages, and ensure cost effectiveness, EU staff has developed a 10 - year Distribution System Maintenance Capital Improvement Plan (CIP) as part of the department's financial model. Staff will continue to work toward completion of the tasks outlined in the CIP at the lowest cost possible, along with updating the financial model and reviewing the rate schedules on an annual basis to ensure funding is available while maintaining credit worthiness. (See Exhibit 2, Electric Utility 10 -Year CIP) b. Increase Customer Relations and Marketing Efforts: The residents and businesses in Lodi are the owners of the utility, and it is our responsibility and desire to become an "energy partner" with our customer/owners. In order to do so, we must leam what they need and provide the necessary information to assist them in understanding how to best utilize the energy conservation programs designed to save energy and money while remaining compliant with State and Federal mandates. c. Succession Planning: The EU has a number of individuals eligible to retire in the next few years, and there are very few qualified candidates in the electric utility industry. In preparation for this a number of organizational changes have taken place over the past five years to improve operational efficiency and establish career paths within the utility. This is an ongoing effort that staff will continue to pursue and evaluate along with leveraging outside agencies for support when needed. VI. FIRE a. Return Browned -Out Fire Engine 1 to Full Service: The total estimated cost of retuming the browned -out Engine 1 back to full service for one year is $365,000 in additional overtime. The cost to hire nine firefighters (one captain, engineer, and firefighter for three shifts) is estimated at $1.3 million annually. City Council Goal Setting March 31, 2015 Page 6 b. Increase Lodi Fire Department Staff professional development and succession planning programs: The fire department staff strives to remain at the leading edge of the fire profession and going beyond the minimum standards to exceed departmental expectations. This can only occur with the continued education, training, professional development and succession programs. i. 2/3 of the command staff will retire in the next 5 years ii. Over half of the Captain/supervisors will retire in the next 5 to 10 years iii. 50% of the Department will assume new positions and responsibilities c. Explore, evaluate and implement a comprehensive asset management and savings plan: i. Communications: Complete the radio inventory and follow through with the purchase/installation of all front-line and reserve apparatus with APEX dual -radios. Total cost for upgrades on the communication systems is $75,600. ii. Self -Contained Breathing Apparatus (SCBA) and other imperative safety equipment: Within the next 5 to 10 years the City of Lodi Fire Department will have to replace over 40 SCBA equipment pieces. Each device can range between $6,000 - $8,000 (a total cost of replacement between $240,000 and $320,000). iii. Develop adequate funding for facilities maintenance, replacement and repair is essential to the safety and well-being of all Lodi Fire Department personnel. VII. INTERNAL SERVICES DIVISION a. Complete Implementation of Tyler and add Functionality: Funded b. Develop and Implement Comprehensive Budget and Financial Policy: Unfunded i. IT ($4 million at 6/30/14) ii. Vehicles ($2.4 million at 6/30/14) iii. OPEB ($16.9 million at 1/1/14) iv. Buildings (See Exhibit 3, Public Works Project Priorities) v. PERS ($93.9 million at 6/30/13) c. Develop City-wide Information Technology Strategic Plan: Unfunded VIII. LIBRARY a. Redesign children's area. At present, children's picture books are located in five sections of the children's area, and we need interesting/fun structures within the children's section to attract children's attention in that area and to stimulate their tactile senses and imagination. The redesign is estimated to cost $22,000. b. Digitize Lodi News: Digitize the Lodi News Sentinel newspapers from 1880 to present. Currently, these newspapers are on 600 roles of microfiche, and our microfiche reader does not work properly. Replacement of the microfiche reader would cost $7,000 while digitizing the newspapers would cost $30,000 and the newspapers would be available online, anywhere in the world. It would provide all of Lodi's history to its citizens for access in their homes, and would save countless hours of staff having to look up information on microfiche. City Council Goal Setting March 31, 2015 Page 7 c. Security: Enclose the Library's back door and the book drop to protect the space from drug use and criminal activity. Cost approximately $6,000. IX. PARKS AND RECREATION a. Continue phased roof restoration protect at Hutchins Street Square: Total remaining cost: $288,000 to protect a $15 million asset for the next 10-15 years. Roof sections A&B completed (Phase 1). Phase 2 needed (Area C, $165,000), then Phase 3 (Area E, $58,000), Phase 4 (Area D, $45,000) and Phase 5 (F&G, $20,000). Cost estimates provided by the Garland Company (site visit Nov. 2013, report updated Feb. 10, 2014). b. Funding for erosion study/mitigation at Lodi Lake Park and grant writing: Focus would be two areas: Pigs Lake/Nature Area and portion between Rotary and Youth Area locations. Goal would be to determine cause of excessive erosion and mitigation measures that may be eligible for grant funding. Estimated to cost up to $50,000, but that likely would not include any significant mitigation measures. Having the study/solution to back a grant application is our best opportunity to receive outside funding. The City submitted applications for State grant funding in 2008 and 2011 without success. c. Parking lot maintenance/resurfacing (In order of priority): i. Softball Complex (2 -inch Petromat Overlay) - $130,000 ii. Salas Park (2 -inch Petromat Overlay) - $300,000 iii. Katzakian Park (Slurry/Re-Paint) - $15,000 iv. Grape Bowl North Lot (Slurry/Re-Paint) - $120,000 v. Kofu Baseball/Skate Park Lot (2 -inch Petromat Overlay) - $50,000 vi. Nature Area paved path slurry seal - $20,000 d. Playground equipment replacement: $25,000 would be sufficient seed money for a community build program at Candy Cane Park. The only playground apparatus at that park is deteriorating and needs new path of travel, plus replacement. $25,000 would pay for materials and site supervisor, with community providing labor. Overall, $100,000 would assist with Candy Cane and demolition of existing south playground area at Emerson Park, which is not ADA accessible and equipment is deteriorating, and replacement playground equipment. X. POLICE a. Increase sworn and civilian staffing: (add 8 swom + 5 civilian staff) — Swom increases include one (1) sergeant (Professional Standards Officer — IA, training, backgrounds, internal audits, policy revision, etc. — replacing a PT civilian position); one Corporal (P10, public affairs, digital media, community policing); and six (6) police officers (patrol, traffic, investigations, and downtown bike patrol). Estimated additional sworn cost: $1.2 million. Civilian increases include one (1) additional Dispatch/Jail Supervisor; one (1) Crime Analyst (replacing a PT civilian position); one (1) Community Services Officer for crime prevention, neighborhood watch, business watch, etc.; one (1) additional Records Clerk; and (1) additional Assistant Animal Services Officer. Estimated civilian cost: $425,000. Estimated total (sworn & civilian based on 2014-15 compensation): $1,625,000. Source: General fund. City Council Goal Setting March 31, 2015 Page 8 b. Replace CAD/RMS system: Current Sungard OSSI system performs poorly. Estimated replacement cost: $1 million to $1.5 million one-time expense, or explore a lease purchase option. Possibly no additional annual maintenance costs. Source (partial): annual maintenance savings from termination of Sungard contract ($140,000), plus savings from now -defunct prisoner transportation program ($50,000, or combined total of approximately $190,000/year). c. Equipment and technology replacement and enhancements: Increase annual vehicle replacement fund contribution to $300,000 (additional $250,000 annually); establish an internal service fund for computer and equipment replacements (—$150,000-$250,000 additional/year); new PD website (—$25,000-$50,000 one-time); dash cameras ($200,000 one-time); body cameras ($90,000 one-time, plus $40,000 annually); implement digital video + evidence storage (additional —$100,000-$150,000/year); additional training (additional $50,000/annually); firearms replacement ($50,000 one-time). Total first year cost: $865,000- $1,040,000. Estimated additional annual cost: $590,000-$740,000. Source: General fund. XI. PUBLIC WORKS Public Works project priorities are detailed In Exhibit 3 and are categorized as follows: i. Facilities iv. Fleet ii. Streets v. Transit iii. Utilities vi. White Slough Conclusion: As Council can see, Lodi's needs far exceed available resources. It is hoped that this session can serve as a framework for setting forth a roadmap for Lodi's most important projects while at the same time finding some projects we can take off the list. Stephen Schwabauer City Manager Attach=nts: Exhibit 1— General Fund Reserve Policy Exhibit 2 — Electric Utility 10 Year CIP Exhibit 3 — Public Works Project Priorities • RESOLUTION NO. 2010-86 A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING A GENERAL FUND RESERVE POLICY WHEREAS, maintaining General Fund reserves is fiscally prudent, and WHEREAS, reserves can mitigate the financial exposure of catastrophic events and actions from outside entities that affect our revenue streams; and WHEREAS, reserves reflect positively on the creditworthiness and prudent management of the City; and WHEREAS, the City of Lodi Budget and Finance Committee has drafted the attached General Fund Reserve Policy for Coundl adoption. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby approve the General Fund Reserve Policy attached as Exhibit A. Dated: June 2, 2010 _ I hereby certify that Resolution No. 2090-86 was passed and adopted by Vie City Council of the City of Lodi in a regular meeting held June 2, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 'ne foregoing document is certified to be a correci copy of the original on file in the Clty Clerk's office. Jennifer M. Robison .Assistant City Clerk, City of Lodi 2010-86 RA HL City Clerk EXHIBIT 1, Page 1 of 3 EXHIBIT 1, Pa . - of 3 rx^i fl r . I ,. • • t11011 City of Lodi General Fund Reserve Policy Purpose of Reserve Policy Adequate designations of reserves—funds set aside for various legitimate purposes ---are critical to the successful and stable, short- and long-term operation of the City of Lodi. Adequate reserves in the General Fund ensure that the City is able to respond to emergencies and continue providing services to the citizens of Lodi. Adequate reserves ensure that the City will have sufficient funding available to meet its operating, capital and debt service obligations. Pursuant to Statement No. 54 of the Governmental Accounting Standards Board (GASB) — Fund Balance Reporting and Governmental Fund Type Definitions, unrestricted fund balance is composed of funds that may be classified as committed, assigned or unassigned. Committed fund balance represents those funds that are constrained by a limitation Imposed by the governing body of a government upon Itself as to the use of those funds. Assigned fund balance represents the City Council's intention to use funds for a specific purpose. Unassigned fund balance represents the remainder of fund balance after accounting for all reserved amounts. Provisions of GASB Statement No. 54 are effective for reporting periods beginning after June 15, 2010. Beginning with the budget for Fiscal Year 2010/11, the following General Fund Reserves shall be funded, as funding Is available. Committed Fund Balance General Fund Reserve – Catastrophic Reserve • To maintain the ability of the City to meet operational expenses during times of declared emergency or major catastrophe, the City shall maintain a committed General Fund balance of a minimum of 8% of annual General Fund revenues. It is recognized that during a time of emergency, the City will need to expend more resources than normal operations dictate to meet the community's needs. In addition to an increased level of expenditure, the tax base of the City may be impaired after a major catastrophic event. This reserve shall be exclusive of all other reserves. This reserve may only be drawn upon pursuant to an emergency as declared under the Lodi Municipal Code. • If the General Fund – Catastrophic Reserve amount falls below 5% of annual revenue, the City Manager shall prepare a plan within three months of approval of the Comprehensive Annual Financial Report (CAFR), commencing with the CAFR for FY 2009/10, to restore the 5% level within 12 months and the 8% level within 24 months. • This reserve is not intended for normal unanticipated expenditures and shall be funded before all other committed General Fund reserves. EXHIBIT 1, Page 3 of 3 General Fund Reserve — Economic Reserve • To maintain the City's economic viability and to meet seasonal cash flow shortfalls, the City shall maintain a committed General Fund Reserve — Economic Reserve balance of a minimum of 8% of annual General Fund revenues. Although 8% is the minimum, because this reserve is intended to levelize economic cycles from year to year, the reserve should have a higher amount to cushion the cyclical effects of the economy. This reserve shall be exclusive of all other reserves. Funding may only be disbursed based upon a resolution of the City Council. • Funding of the General Fund Reserve — Economic Reserve will begin in the fiscal year following full funding of the General Fund Reserve — Catastrophic Reserve. Provisions below regarding action required if the General Fund Reserve — Economic Reserve falls below 5% of General Fund revenues shall only apply after the reserve has been funded at the minimum 8% level. • Once fully funded, if the General Fund Reserve -- Economic Reserve falls below 5% of annual revenue, the City Manager shall prepare a pian within three months of approval of the Comprehensive Annual Financial Report, commencing with the CAFR for FY 2009/10, to restore the 5% level within 24 months and 8% within 48 months. • Once fully funded, in no case shall the General Fund Reserve - Economic Reserve fall below 5% of annual General Fund revenue for greater than a continuous 24 -month period. Assigned Fund Balance Once Committed Reserves are fully funded, the City Council may establish Assigned Reserves for designated purposes. Assigned Reserves reflect Council's intent as to the use of funds. Once assigned, funds may only be released by resolution of the City Coundl. Lodi Electric Utility 10 -Year Capital Improvement Program MutrIbtion Capacity Pressen Underground Nperemente cede replacement) Streetlight Mewing and Fuming 230 kV Inlemoneellen 12 $V Overhead Heideman (km reerdwlor end pole lepMammU Ope Center Ergo dp Sleeddm Improvements Rpl61524$ KMelea Remind old BK2 Beery a kduddd Replace 6OW PCV 00 BreakerldSF6 breaker Fley[ew 1110-rw 006 0021 m/SF6 Brukr irti taste. ex.! .0, rewound hank Rewind old Melee Ma Rpl Henning OCB 6041 MSFB Breaker RpI 5- 12W brmkra and bus Oe a McLane New Carp Yard® Industrial MSC Yup 190 Equip Mere (..ea proles) Annus Mier Other TOTAL 'vW'p:.BYa-s-_.t: VddsWlRRBr9 Mode TOTAL CAPITAL 13114 S - $ S 127,000 $ $ 270,000 $ $ 50,000 5 s 10,000 $ 5 14016 15116 16117 17113 25019 10125 20021 21722 2223 33104 400,000 5 400.000 $ 700,000 S 250,000 5 250200 5 250,000 $ 125.000 5 173,000 5 125,000 $ 126,000 700.000 $ 400,000 S 480,000 $ 400800 5 410.625 0 400,000 s 430,000 3 454,000 s 454,000 $ 400,000 507.100 5 240.000 6 240,000 1 240,000 $ - 250.000 $ 250,000 $ 60,000 $ 70.000 5 - 750.000 $ 326,000 $ 326,000 $ 725,000 5 327200 5 325,000 S 325.000 1 375.000 $ 320.511 $ 225.054 5 1200,000 s 0 000,00D 1 35,000 s $ 45.000 s 65.000 $ $ 55.000 $ - $ 160,000 8 s 000,000 S $ 00,000 5 S 125,000 $ - $ - s - $ S - $ 100,000 $ 100,000 $ 150,000 $ 100,000 $ 250,000 $ 250,000 $ $ 629,200 $ 2,100,000 $ 2,949200 $ 1,349,000 $ 1,306,000 5 1,1$,000 $ 930,000 $ 630900 $ 930,000 s s s $ S 544,150 $ 50,000 $ 406,040 $ 2,906,310 $ 3,550,000 -Kr= • s 56. 0,000 5 16796 6F s 337000 $13004 14111••:?:. s ;.760 17>25.r� .- 1646 6017 $ 1,03$60$ 3,101.010.43.3!600i•.g:... 171{0 s 00.000 5 -1,000200 s 1 0125 20021 21102 .. 22044 10718 451!9 20157 2672 77Y23 2.3000 400.000 3 450.000 3 417.005 S 07305 5 100,000 $ 150000 1,745,100 :5 1,7a5,0e0" t 5.10,000.4:1,454,0 ; s 19 0.600 s 1930,004 EXHIBIT 3 - EARAild CWID I Dig.1i3E3 --110, 11001411 REPA --Wrmtch=zrasis...d -----i -----811118•81.88 E. Maki 30.$•101D1 MINI WIWI • PWWW 11112040mIskI* fttgoroco w.d.i. s imgc.--'p,. -3----- ._.31Ztn$Avg NAL- WalIDIDWE R84581101 R[0101 Lai -RWMW-EWLIDR. kmonlo wiling 8& me mine* mantra AC and me AITA pralm ANA PEIRW WI 0101081ADADEDEWzions b Rua prism.. - &FARA SOD 1 3 1113,00D i REW11.7•41 DOWD iftm Anima ADA Dowstuninli Growl Red . 1 3 2513020 2 : 3 $ WOW MAR 3 L 3 WOWS I COW Gemr•I Ard 0 PAO APERDE FEAR . . Stoat RDA I Gam Tot i"."th-g=i-Zgr Lomp.seco a aftbP/0111,10,6 • two& A180.410a • D.....1P...!432FPLFP'4...82 Ikallailm Puling R•arhes 018, RA Ad* 8,00$44•01.01,42 ammo ... a- -limit-Willa' - - 'chi,* mint R.Lirdny OA •E----• iiii-iiiiciis.t.ivm......+0mran paiouteareni 23111 04.• pre wa.a -5~01+116404 , ADA =as err14_ "with ---•-.. HWY, 31,._10410104.1.098111mio LoylilimmELL•*_ ..---..,...L.PRAt!10451PPRIPE T4.11.41.413- Wog raphol ...4000.1b108,4•0•81 _ . .3.1.33EREL1_3C3D30,_ 1 3 " ... -124.2a188- R I 818.• evnEor Wa Rep4100 OnelD Sffipmlba P1WDE helm f ehlwb1e1 rrimno ‘841Ko1401 Imirme (WSW* , IA. 1...8.01044 101.14•• *WPM •ErEmi-E8 Di Pamr, Lora md . t10/04/0011011.04 kw %Wks 10 11.1400 EZ -.4.0 4 1 ORIEW I WDEEED .- 1 3 iapaopoo • . SIDERFinel MAW& ANN* Mug Lam Woo Sams 14.1.0.ri armitInvetle.ilpanrar SODOM 0100114: WA) _haftw --11101: Irelmlael WWI/ 3 0.• - Indio mc .0•41 Di 140108 a LWOW! 2 $ 1.502,0221 RSTP Posing Lame Samerafte Rind &We Anon CPARAERD We le TA111. WAD Rep* 1 Vampish:a Didatissmwm41•80 Imi bop. ID 3 3 35ROW j 3 $125100 . • 4WD 1•1*1•110,018Nrre hi.. was Not Idmillbel CD110 Not NAMPA • rt•j DOWErmimil w1100101101101110STRA1.1101111•Was pulmo popin leedent WT01 Pbm811$11•01.1001111001•1481, 1110, MEN &man PAW 111*, ma 10ealire Deve14•110 E11~41.101111ea low adleclolled• sea We 12m41. ADS • IS lan$144.8 P4DA TWO 3328Er sil4mEry Lim mid Wm hmum PAW TiaTs Dori 811 Ufa and RAW Remi • • DAM TeMe DbmE akTENEw 0444 4•0 0411404 1$441. : 1 S 400.000 1 WD31 1 3WOW 1 w432/ 1 4118=:' 4 -1.... lig...220 GMT= Om T/1& iwwi Few _RELTV_30-11,R. IDA/ Mew. K kilia *WAD tim-rmy I Ilis Eami'viebr llener/184, • AMUR/ 31WIELDWIRWIDD 01011$8 8811211181.0•08mien Conran rarqvg al* 4.10•4141i ploi MOW YR 11130111 00011411 1 1 3 WWI $ SOICW /08100EAD.1 84.18.0mdl$E0/81.1.4 - pia** RE CRAW P4•11•104 IADDIADA •_,.t.rmr10.010001kr• .61*.saFt CORO 114480/4 COF CM884,1 8•88 i&AE•kall•4041X•114•Ems rem. 1011 ; /---/-;& - tlialltanakalarma 0111•D• LAIDE/A on Seim/ W4./ 10448dt pamm0•0 almeley 110$401 . =.TED WWII • Ei,d08.88.0pmems•p ~MO miii.$ Evalwo ED RIDIA*11114 1 • $ 1 MOOD 1 8287721 Pale 1/01 Sled Omni Rod Imisais PwelIng ' - -- - - P$04/311 Pasliiii• 1111$1111P1 OW WM 21111111,41 plogisrogediftra WOWED hek a ta.ev ospraiswErr Peep REEplit meemaril MIR WNW 8100ws rds•41•001 mmieelst E genuomorreeematElmol0011141140 dd • 1 I seAcq 3 7 1 3 400.030 1 1 100.012 E E 1 $ W=1:110 E Omani RIAD ballaMlar Desta10011110180116/1 31AdyPept• ffeampar Pum Wilm Tml. %am --1- 1,41.1cdmowl away, 1. er$11$408111$0811110114 WastmoW Win Rolatalien 3.001 =WA. 010•01403014 •E11,110'1.1011.p: ID Or all unbambr . r:::11.14111018811REWEEDWRDWRED 01801011AREL 20$/mA skl 0208T•=0,10101p.01114111111111041:011111W111111111.11 SPArm4/4" PA8111118 . ' . . - Igifilirahll DPIPDRE =DARR Warm WDS•0412, TDA TDA • *mak& 1 $ =WO 1 1 2 3 113;003 1 011.11•001•184.1 • Awbble : • &ADM . PEPREI10414.11.12.,4/014.04 _A_MtliffInfi PE.184. En$11•1•110151•0 •800 log • raw May•Dw imt8A DAIWA EsmEdrip Re ramEteme PM me to 14 i ED to $080.116 elm allAng 8.014111 • 1=4 ParanneVeid• Ls... LAViltysiiiii Azepire mond poling let kr Den& bur EnD111 au$0.180 warlfaSswEE-W101P0 EDIEto Ul•fge DRAW WE .1.A148•88 4111.84 Au" wet 1:1•144668 10010:4. , P440.1844104,4•00/rA bite Imam ' 1 $ Nacos 3 110,0:01 1 2 3 30,WD Plop 113 i TIESSORA TDA Mille : • Anita a moped prlirg ParAt ram he .080Perad• $1110.8 or meow Dneerr.. Prcand with mes$1010 •-01 01•0•1080.1 el Pr Als. • 1 Das 310p 18$008.04,0 PeD8A00 r1000110.• leripmer$ Dia nap med hus lop &wombat 14•410/0.11.410.1 rk•rg SWIM ralayt•Wm 3 130.1:03 3 WAWA, PTA/ MA PRYOR "D301011.381 • PiltWerRial Wu/Era Creop1 Gemades11/p0/ -12u08$0 0$80•41 beilfir eirrOveloglin 1011 imicen0241 AM mlnIDW0 • ' 1 3 WO= MM. 81161d r3P1110 MAW,' MI RS 184,2.8118. 8.13 IA 10.8401 Omni. b Om ImEad•R Wolvaahr i almikra rep•P• an rmiwsl &FAIN:meld DE•0104$ Darr Pip= Ael•In$100.7 rEseve. 0•4•Dirp tn18 de Del voids 0.1leral .1.11.8101y1E1 E/T_PA8141,804110 opA-aten. A 100 88-A. 0.184 3 1.302,Cal APWREID 8.1111111DSAM C1111011•88 FagnaLlpp:1 LIV laW1•4 an: 10 yens Ad and ay rainionna ilsmive Dna %NAAR* Dam . mop cemATEEMan 0•14/101•• Apia* PA LA/ ma* 8.-011014.112.1. 0•4101AATEA.P.E.L01.1511.!Ple31. ; 4 3 2000,111/ I • • • 111$1130PHARIElaig DER/.40try Der0•81 am1 Ms haexhaban (SCADA8a80 trInerelmian P•01414 Uplerle• C.-A.1111NA, 140•448.1,14...mahnir timl/sv DA121441.8A. 180.r.• End Au 40•00k-8$ upenue ri2.0 prime/ eidime4 11• we.. vii ratuwi m110 15 pwkrEne018 erne 8rd• kr...wk.) ma, Irmairl. kfteak. '1-"' ! • 2 8 3.5183,00) 3 USW= E . : 3 8 4WD.= • • . halal I 8pineker• me 8.4.el.le b.•••132.. isms mdr. nvlririn. 1180: mica v.& add dew arm rhino} rm.. tme.rataa irtS 0$00.1•0 8.444 DAPDVA10111•4 worm •11114 40•Inil 1.11111101- tftweVera Farplegrolerr mahtaity eken, sinnt.rmei eviwskerpodeds VEIREINE•Inr • • Praitio logirom 8.121.0 MI ...at icheeker 6ixralou In Za :ma delmia JED:11/114.0 41406.114r.A•mnt00.81 .n4 ex4.11 Wambsyler EXHIBIT 2 March 31, 2015 Council Goal Setting - Voting Results By Category Economic Development Cost Council Votes Total Votes RANK Economic DovelopmenUi0bslbusiness attraction InfrestnaIXurelutilltles to fnduslrlal parcels Eoortamic Development Incentive Program Make Lodes Fber Optic System Available to Business Annex end make 'shovel reedy cammerdal and Industrial lend Incarporoto Goals of Vision 2020 Into future City goals Infrastructure to General Plan Undeveloped Arena" TBD TBD TBD TBD TBD TBD TBD 2 1 1 3 1 0 3 3 4 2 3 1 0 5 4 2 e 3 0 Downtown Downtown Dovalopmait/totrism/homeless saknfon'"' Downlawn-9ee4 0oaUenfdupliceto) Downtom Improvement Downtown Property -Based improvement District TBO TBD TBD TB0 2 1 3 2 3 4 e 6 Homeless Downtown Develop mentltouesudisome.ess *0lution"' Homeless TBO TSD 2 1 3 1 4 9 Public Safety Gang Suppression-- Second uppressIon"'Second Gang Intervention Worker"' Relum Browned -Out Fire Engine 1 to Full Service Lodi Flre Department sluff proroesional development and succession planning Increase sworn and clvtlion sterling TBD 944,000 91,665,000 TBD 51,825,000 1 2 0 1 2 3 7 9 7 5 10 Gangs Gang Suppreaslors`"' Second Gang Intervention Worker"' TBD 544,000 2 Fiscal Sustalnabllkty Explore, evasuaty and implement a comprehensive easel management and savings On Develop and Implement comprehensive budget and financial policy Infarmetlon technology Vehicles OPEB PERS Develop City-wide Infannatlon Technology 8lnsleglc Plan 576,600 to 5395,000 54,000,000 52,400,000 510,900,000 593900,000 TBD 0 0 0 0 0 1 9 3 6 1 10 0 0 0 9 Asset Preservation Continue Phased Root project et HSS Funding for erosion aludylmlll5atlnn et Lodi Lake Park and grant writing Are Station No. 1 Mohan rernodol 3235,000 950,000 550,000 a 0 0 10 10 10 Other Indoor Raueetion Feclblles Eastside Improvement 1E•Racards System (38,000 to 36,000 annual maintenance] TBD TBO 325,000 10 550,000 v 0 1 2 3 10 9 5 "Rank weighting by ratio of Council votes to total votes "Goal recommended by a citizen et the 3/31 meeting "'Goal Is repeated In more than one category