HomeMy WebLinkAboutAgenda Report - November 2, 2022 H-02CITY OF
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CALIFORNIA
AGENDA ITEM
H-2
COUNCIL COMMUNICATION
AGENDA TITLE: Receive Report on Progress Towards City Council Goals and Provide Direction on Future
Goal Setting and The Process for Use of One Time Funds
MEETING DATE: November 2, 2022
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION. Receive report on progress towards City Council goals and provide
direction on future goal setting.
BACKGROUND INFORMATION: The City Council established a set of goals for the City by Resolution
adopted on May 26, 2015. To establish the goals, a special meeting of the
Council was held on March 31, 2015 to discuss Department Head, City
Manager and Council top priorities for the City and formulate them into goals to guide the City's operations. At
the time, not all of the goals were tied to specific programs or projects but were outcome based. Staff was tasked
to use these goals as a guide to seek and direct resources, including funding, to make progress towards and
achieve the aspirational goals. Since adoption, staff has reported back to Council on the goals as a group only
once on June 7, 2017 but has not held a specific report back to Council since that date. This presentation is
intended to report back on the progress towards those goals since 2017 and seek direction form Council on
whether the goals remain a relevant lodestar or require revision.
The Council identified seven primary goals in 2015:
• Economic Development, including "shovel -ready" land and incentive program to focus on underutilized
parcels
• Public Safety, Gang Reduction Intervention Program, training and increase 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
• Beatification of highway overpasses
The Council staff reports and the minutes from the 2015 workshops and 2017 update are attached for more
information. Council and staff accomplished much since the previous update in 2017. Staff offers the following
highlights of achievements in these areas:
APPROVED: Steve schwabauer
Stephen Schwabauer, City Manager
Economic Development, including "shovel -ready" land and incentive program to focus on underutilized
parcels
Industrial Annexation Planning
The Planning Division of the Community Development Department has worked to complete the update of the
City's Municipal Services Review (MSR) in route to submit a request to the San Joaquin County Local Agency
Formulation Commission (LAFCO) to modify the City's Sphere of Influence (SOI). The modification to the SOI
is to add +/-850 acres of land, East of Highway 99, South of Kettleman Lane, West of the RR Right-of-way and
North of Hogan Lane. The expansion area is planned to carry only three zoning designations: Industrial,
Business Park and Commercial. The City has a low inventory of available land for these land uses. This effort
readies the land for private developers to evaluate annexation and development that would provide jobs -based
expansion space for the next +/- 30 years.
SEDC Grant Program Funding
City Council authorized the expenditure of $20,000 to provide Lodi's entrepreneurs and small business owners
who are credit worthy but not quite bankable with help towards business plan development, financial projections,
marketing, financial statements, and other good business practices designed to manage risk. The programming
will be provided to applicants of the Hometown Microloan Program and other business hopefuls who are not
quite ready for a loan.
Economic Development Rate discount program
The EDR discount program is available to commercial and industrial accounts of Lodi Electric Utility. An
enhancement to the existing New Jobs discount rate, the new EDR discount program rewards employers adding
20 or more new, full-time jobs with an 8 percent discount on consumption costs for two to five years depending
on the number of new employees added at the start of the first year of the program. Providing the discount for
more than one year, gives the customer a greater certainty of lower energy costs for more than one year for
better planning. The program was adopted by City Council and made effective January 1, 2022.
Hometown Microloan Program
This program for start-ups and businesses with 10 or fewer employees is planned for presentation to City Council
on November 18, 2022. Issues including loan types, amounts, loan requirements, interest rate, and other loan
requirements will be recommended by staff for Council approval. City Council will consider staff
recommendations, and provide direction for implementation. Upon approval, staff will search for a loan
administrator and continue discussions with local lenders who may invest in the program thereby increasing the
funds available. City Council authorized an initial loan fund of $470,000 from general fund revenues. A soft
launch of the program in terms of opening the application process is expected in January 2023.
Brownfield Grant Program
The City is mid -way through its second Brownfields Grant from the Environmental Protection Agency. This grant,
in the amount of $300,000, has funded Phase 1 and Phase 2 assessments of properties suspected of
contamination from petroleum and other hazardous substances, including lead and asbestos. Properties found
to be contaminated undergo other grant -funded studies designed to bring the properties to a condition of
reuse. These studies include sampling and materials plans, remediation, clean-up and disposal. No local match
to these grant funds is required. In FY 15, a $400,000 grant was received. Recently, grant funds provided the
resources necessary to identify the level of noise generated by an electric substation and a noise mitigation plan
to help clear the way for the development of the Lakehouse mixed-use development project. Brownfields funds
may be used to assess conditions of the Old Firehouse, generate a mitigation plan, and address the structure's
seismic needs.
EV Charging and EV Purchase Rebate Programs
The expanded commercial EV charger rebate program, and new zero -emission EV vehicle purchase rebate
program were approved by City Council in October. Staff expects the program to launch on October 31.
Lodi Development Prospectus
The Lodi Development Prospectus is a "pre -qualification statement" for the city to attract capital and drive smart
investments. Prepared by staff to provide valuable business data from a variety of sources, the prospectus serves
to authenticate Lodi as a sustainable business location. Business data for cities the size of Lodi is often not
abundant. The U.S. Census Bureau and U.S. Department of Labor assemble data for counties and metropolitan
service areas. Small and mid-sized cities often lack the level of publicly available detail required to make
strategic business location decisions. The Lodi Development Prospectus provides the level of detail necessary
to satisfy business site selectors researching existing business conditions, related clusters of businesses, and
business loan activity to determine conditions conducive to economic growth. The prospectus presents condition
of roads, water and wastewater infrastructure, and cost of power to reveal the potential of operating
efficiencies. It gives police and fire budgets to give the site selector information on municipal service levels.
Finally, it gives rates of upward mobility over generations, statistics on crime over time, and a rate at which parks,
libraries, and other quality of life opportunities grow as demographic changes occur.
Online Economic Development Analytics Tool
The economic development analytics tool allows anyone interested in reliable data to access Lodi's
demographic, labor force, spending, education, and industry information to test a hypothesis, to start a business,
to launch a product, to make a capital investment, and to write a research paper. This information is available
for Lodi and for customized areas within Lodi by census tract. The availability of this information makes Lodi
competitive with other cities who offer internal and external stakeholders data tools to aid in decision-
making. Under consideration for the near future, is the next phase of this information tool to allow users to
identify business real estate opportunities in early stages of property searches without hiring a broker.
Public Safety, Gang Reduction Intervention Program, training and increase in staffing
Lodi's Public Safety consists of the Police and Fire departments. These departments have continuously been
asked to do more with les historically. In 2018, Lodi voters approved Measure L, a '/2 general sales tax. City
Council has provided significant additional funding to police and fire as a result of this additional revenue and
significant enhancements to service have been made.
Police
New Positions — Seven additional officers were added in the Fiscal Year 2018/19 budget at mid -year
after the approval of Measure L. An additional officer was added with the 2022 budget adoption. A
Lieutenant position and a Sergeant position were added as well to restore positions previously lost to
budget cuts. These additional positions allow for more coverage for basic patrol duties. The new Motor
Sergeant will be assigned in the next few months provide management oversite over the traffic division
to ensure Lodi PD has a focus on traffic violations in addition to other criminal activity in the City.
Special Enforcement Team (SET) — SET is utilized for Gang, traffic, side show and drug enforcement.
Since May of 202, 138 arrests have been made, 171 citations were issued, 11.3 pounds of narcotics
were confiscated and 7 firearms were recovered just by this unit.
Narcan Drug Overdose Treatment — Lodi has experienced a significant uptick in narcotic overdose related
calls for service with tragically many resulting in serious complications or death. The overwhelming cause
for this is the presence of Fentanyl as either a narcotic of choice or an additive to other narcotics. In
2020, Lodi PD recognized the need to react to this community need and secured the ability to administer
Narcan in overdose scenarios. Each officer is trained in the use of Narcan and now carries 2 doses as
part of standard equipment in the field. Since 2020, Lodi PD has deployed Narcan 73 times which equates
to an average of 24 times per year or 2 times per month.
Fire
• Life Jacket Loaner Program — The Lodi Fire Department entered into an agreement with the State of
California to manage a loaner life jacket program. All of the lifejackets and kiosks were provided by the
State of California free of charge with the expectation that the Fire Department manage the program. This
program will save lives.
Enhanced Water Rescue and Boat Team - The Fire Department secured an aluminum and retrofitted it
for rescue operations. The Lodi Fire Foundation secured funds to purchase a new boat motor to
appropriately power the vessel. The fire Department trained on surface water rescue and flood
operations. Within the first month of deployment the Fire Department used the boat for a water rescue
at Lodi Lake.
Expanded Wellness Program and Joint PD/Fire Chaplaincy Program — The city implemented a wellness
program for firefighters which includes access to a clinician and a joint PD/Fire Chaplaincy program. The
mental health of our firefighters is a major concern for the current fire and City administration. Having
access to trained clinicians is essential in order to meet the needs of our personnel. Suicide is a leading
cause of death of firefighters. Having a well-run chaplaincy program and access to First Alarm wellness
cast a large safety net around the members of the fire department. Both programs have been accessed
and used several times since their implementation.
Engine 1 back in full operation — Prior to the passage of measure L, Lodi Fire Department operated with
only 12 firefighters each day. This becomes problematic in regards to structure fire responses. Lodi Fire
would routinely rely on other fire department to assist with the mitigation structure fires. Increasing the
work force allows for shorter response times for emergencies, for the fire ground pace to increase, and
an increase to firefighter safety and community safety. Since passage of Measure L, Engine 1 is now
fully staffed.
Narcan Preparedness — In 2022, Lodi Fire was able to gain the permission from the San Joaquin County
Emergency Medical Authority to begin delivering the enhanced scope of Basic Life Support. Lodi Fire is
now administering this lifesaving measure in the community in addition to police providing additional
support against overdose.
Preparation for Paramedic Service — The Fire Department also secured nearly $1 million through FEMA
in an assistance to firefighters grant to send nine firefighters through Paramedic school. The goal is to
have one paramedic on each of the four fire engines within the next two years. This will ensure that
lifesaving Advanced Life Support be provided to all of the citizens in Lodi as quickly as possible. This will
be the most significant increase in service levels provided to the community by the fire department within
the last thirty years.
Fiscal Sustainability, asset preservation, CaIPERS and Other Post -Employment Benefits
Measure L
Going into Fiscal Year 2017/18, the City was projecting a status quo service level budget with no new positions,
no increases to employee compensation and no additional programs that showed the City bankrupt in a matter
of 3-5 years. Needless to say, the City was not fiscally sustainable. Since June 2017, the City has been able to
add positions, increase service levels in some areas, fund local reserves for replacement of mandatory
equipment and vehicles, increase funding to long term liabilities (PERS and OPEB), maintain local economic
and disaster recovery reserves at 16% as required by Council policy, increase operational support to the Library
and Parks, Recreation and Cultural Services, increase employee compensation through negotiated labor
agreements to enhance our labor market competitiveness, begun to address long overdue capital needs in parks
with both an ongoing and sustainable annual budgetary contribution and with millions of dollars of one time
funding, and remove insolvency as a potential outcome from event he worst case scenario projections. Currently,
the City is Fiscally Sustainable and it is for one reason: Measure L. Measure L was approved by voters in
November of 2018 and brought in over $9.1 million in general purpose revenues in FY 2021/22 and funded 29
positions and all public safety overtime and provided flexibility in the overall General Fund budget to accomplish
everything noted above. Quite literally, Measure L saved Lodi's City services and without Measure L the public
would see a tremendously lower quality of service from the City.
Reserve Fundinq Improvements
City Council has approved increases in annual contributions to vehicle replacement reserves for all departments.
For the last two budget cycles, the City has contributed at least the equivalent of the annual straight line
depreciation amount for vehicle replacement all General Fund departments. The current fiscal year shows
substantial catch up contributions for police and fire which have historically been the most underfunded
departments.
In Fiscal Year 2020/21, the City established a Network Infrastructure Replacement and a Computer Replacement
reserve account. These accounts ensure that IT has the resources to purchase vital equipment on which all the
City's technology relies for consistent City operations. Keeping this infrastructure up to date ensures the City
has the ability to tie into current technology solutions and do so with the latest cyber security capabilities as well.
Also established in Fiscal year 2020/21 was a $400,000 annual contribution to Parks Capital. These funds can
be assigned by City Council to specific projects within parks. Previously, there was no established funding
amount to address the backlog of parks deferred maintenance, which staff estimates could be more than $40
million.
In Fiscal Year 2022/23, a Parks Equipment Replacement Reserve was established and annual funding was set
aside for replacement of vital equipment. Previously the City relied on salary savings as the only mechanism to
replace equipment which led to significant inefficiencies within the department if equipment failed.
Operating Budget Enhancements
In Fiscal Year 2021/22 and 2022/23, City Council approved additional funding to the library and parks
departments for the first time in over a decade. These departments had been forced to operate on a "more with
less" basis despite increasing service demands during this time. Current budget projections assume these
departments can continue to share in revenue growth in a sustainable manner going forward.
CalPERS
In December 2017, the City Council adopted a revised and strengthened Pension Stabilization Policy (PSP).
The additional PSP requirements approved were funding 100% of General Fund reserves in excess of the 16%
required by the Council's Fund Balance Reserve Policy into the Pension Stabilization Fund (PSF) at PARS and
budgeting a monthly payment rate for the City's Unfunded Accrued Liability (UAL) but paying the annual rate
each July as Additional Discretionary Payments (ADP). The City has largely followed this policy since with the
exception of the two pandemic years Fiscal Year 2019-20 and 2020-21. For Fiscal Year 2019-20, the City used
excess funds only as ADP to PERS rather than depositing those funds into PARS and for Fiscal Year 2020-21,
Council elected to reprogram pandemic related reimbursement dollars to one time projects as opposed to
pension reserves.
The PSF has accrued $20.4 million in deposits and investment earnings as of August 31, 2022 providing a
substantial buffer against future pension uncertainty.
Since 2017. The City has negotiated two contracts with each of its bargaining units that resulted in cost sharing
whereby the employee pays some of the City's portion of the CalPERS normal bill. All employees contribute
between 2% and 15% of their salary towards the City's CalPERS cost greatly reducing future City obligations.
The overwhelming majority of employees contribute over 6%.
As a result, significant pension funded status improvement has occurred since the adoption of the revised PSP.
�F
Combined PERS Funded Status
PARS Balance
Funded Status with PARS
Unfunded Accrued Liability (UAL)
kine 34.2016
63.4% 72.8%
$0 $20.5 million (June 30, 2022)
63.4% 77.2%
$130.8 million $124.6 million
Other Post -Employment Benefits
Beginning with Fiscal Year 2019-20 the City Council's adopted Budget and Fiscal Policies was amended to
require all reserves in excess of 25% in the City's benefit fund be invested into the City's OPEB trust fund to help
address the City's on going OPEB liability primarily due to a closed sick leave conversion program. While
significantly less progress has been made towards funding this liability than towards the CalPERS UAL, it is
substantially smaller, closed and shrinking on its own. Less than 10 active employees are eligible to receive the
benefit and the number of retirees drawing on the benefit is projected to decrease annually as retirees exhaust
their benefit allowances.
Revised Tax Sharing Agreement for Future Development
The City has engaged in negotiations with San Joaquin County to enter into a tax sharing agreement for future
development areas currently outside City limits. This agreement is required as part of the development process
for any future annexations. Historically, the County has received a substantially higher proportion of property
tax than the City despite the City carrying a larger burden on service delivery in annexed areas. Negotiations are
ongoing, but the staff are positive that the process will result in the City obtaining a more sustainable agreement
for future developments.
Asset Preservation
The City is nearing completion of two significant roofing projects at Hutchins Street Square and the library.
• HSS Sloped Roof — This project is to replace portion of the sloped roof at Hutchins Street Square with
new membrane and metal roof system. The replacement was completed in May of 2022. The final
cost of the project was $529,038.
• Library Sloped Roof - This project is to replace the sloped portion of the library roof with new
underlayment and roof tiles. The Project is expected to be completed in November of 2023 at the cost
of $325,980.
• Lodi Lake Riverbank Restoration Project: The $1 M project to restore the riverbank was made possible
by Assemblymember Jim Cooper. This project restored portions of Lodi Lake's bank and included
mitigation of erosion, tree removal/trimming, riprap and sod installation. The project was completed in
April 2022.
In addition to these specific projects, the reserve funding improvements previously mentioned will help ensure
the City is prepared to address regular maintenance, replacement and emergency repairs of critical infrastructure
with minimal operating budget impact. The City also has funded $400,000 annually in the last two fiscal years
towards parks capital with the intention of addressing the substantial backlog of maintenance in the City's park
system. Estimates for deferred maintenance range up to $40 million.
East Side Rehabilitation, incentive programs and infrastructure
The City has made significant strides in upgrading, improving and maintaining critical infrastructure during the
last five years. Below is a non-inclusive list of major infrastructure improvements.
Public Works Infrastructure
• Traffic Signal at Victor & Guild — This project is to construct a traffic signal system at Guild Avenue and
Victor Road (HWY 12) intersection to improve traffic safety. This project is being reviewed by Caltrans
encroachment permit division. We expect to advertise the project in spring of 2023 and the construction
starts in summer of 2023.
• Well 24 Rehab — This project rehabilitated Well 24 due to a failing well casing. The well rehabilitation
was completed in September 2022. We expect to accept the project in November 2022.
• 2020 Bus Stop Improvements — This project removed accessibility barriers near 7 GrapeLine bus stop
locations and installed a new bus shelter. This project was completed and accepted by the City on
11/17/2021. The total contract cost was $508,915.
• Alley Improvements Phase 8 — This project reconstructed the alley north of Elm Street between Garfield
Street and Cherokee Lane and was completed and accepted by the City on 10/20/2021. The total
contract cost was $174,508.
• Alley Improvements Phase 9 — This project is to reconstruct the alley north of Walnut Street between
Washington Street and Central Avenue. This project is near completion. Final paving should be done in
October. We expect to accept the project in December of 2022.
• Garfield Street Safe Routes to School - This project installed missing sidewalk and wheelchair ramps
from Harold Street to Poplar Street. The project was awarded on July 20, 2022 at a contract price of
$554,667.00 and it is in the punch list phase. It is expected to be accepted in November 2022.
Parks Infrastructure
Due to the historic revenue opportunity provided the City by the combination of Measure L and the COVID-19
pandemic, significant funding was put into parks capital to address a substantial backlog of maintenance
projects. While the list below is extensive, there is still substantial work to be done to address deferred
maintenance.
Blakely Park Improvements:
• Blakely Park's former restroom was built in 1963 and remodeled in 1992. The restroom had been out of
service to the public since 2004 due to repeated vandalism. In 2017, the restroom facility was demolished
for a cost of approximately $25,000. In 2020, a new restroom / storage building, related site utilities and
concreate flat -work were installed. Cost of the project was $275,000.
• The City was awarded a grant from the State Parks, Office of Grants and Local Services in the amount
of $882,340 for the Blakely Park Sports Fields and Irrigation Improvements. This project provided new
turf, irrigation system, basketball court, soccer field and baseball diamond renovations. The new irrigation
system, including booster pump and new controller is estimated to save approximately 1 million gallons
of water per year. Work started late March, 2022 and was accepted by Council at their regular scheduled
meeting on October 19, 2022. Other Parks Capital funding ($120,000) was transferred from Legion Park
to support this project.
Candy Cane Park Improvements:
• Improvements were completed in 2019 and funded by a number resources: $278,000 PRCS fund
balance; $2,500 donation from a resident; Storm Capital account $28,000; Measure L funds $100,000
and Streets Capital $35,937. This project provided new ADA accessible playground equipment, park
benches, picnic tables, drinking fountain, fencing, new accessible concrete sidewalks, irrigation system,
turf, tree plantings and a new park sign. Work started late August, 2019 and was accepted by Council at
their regular scheduled meeting of December 18, 2019.
Grape Bowl Improvements:
• Grape Bowl South Bleachers Project included installation of additional support bracing under the existing
stair treads along with new hand railing in the existing stair aisles for accessibility improvements. Project
was completed in September 2021. Construction costs were approximately $90,000.
• Grape Bowl Turf Replacement Project $770,000: With increased play of recreational and competitive
soccer, football and constant UV exposure, the previous field had been deteriorating since 2011. Work
started in May and was completed in July 2022. The artificial turf has been replaced with new upgraded
turf and divots on the perimeter of the field have been repaired.
Lodi Lake Improvements:
• Lodi Lake Southside Renovation Improvements — Pending/Budget Approved — Lodi Lake's parking lot off
of Turner Rd. is in need of repair. The parking lot has not been repaved/repaired since its inception in the
late 1940s/early 1950s. Over 45,000 vehicles enter the park annually. This number does not include foot -
traffic nor visitors who park off-site. The parking lot is riddled with holes and striping is nonexistent. This
project will reduce safety risks to the public, reduce maintenance costs and beautify the park. This project
will restore damaged roads, trails and picnic areas and will protect these from further damage, enhancing
visitor experience and safety for visitors. The scope of work shall include the reconstruction of the paved
parking lot area, along with underground utility up -grades, new concrete paths of travel, trash enclosures,
picnic tables, park benches, playground equipment, turf and irrigation improvements. $2.4M of the one-
time funding has been allocated for this project.
Other "one-time funding" pending/budget approved projects:
• Salas Park Parking Lot Overlay Improvements - $1.3 Million: Salas Park's existing parking lot is in very
poor condition with numerous pot holes and failing asphalt pavement due to weather and normal wear
and tear. The Lodi Boosters of Boy/Girls Sports who use the facilities regularly for youth and adult
programming recently striped the parking lot to help identify spaces. The scope of work will include re -
pavement of the parking lot and overhead lighting. This project will rehabilitate the parking lot and protect
areas from further damage enhancing the visitor experience and reduce safety risks to the public.
• Playground Renovations at five (5) locations — $1.63 Million: Replacement of existing playground
structures, one of those has been removed entirely. The playgrounds were installed between 1997 —
2001 and according to playground safety regulations need to be updated to meet equipment safety
requirements. Replacement parts for the existing structures are difficult to obtain due to the age of the
structures and often times repairs are not timely.
1) English Oaks Structure — $363,000 — Playground installed in 1997. Currently there is no playground
structure as it had to be removed for safety concerns and reported injury.
2) Hale Park Tot Lot Structure - $298,000 — Playground installed in 2006.
3) Peterson East Structure - $348,000 — Playground installed in 1997.
4) Legion Structure — $378,000 — Playground installed in 1998.
5) Katzakian Structure — $348,000 — Playground installed in 2001.
• Legion Park Community Building Renovation - $275,000: This revenue generating facility has been taken
off-line due to poor conditions. The scope of work includes renovating the interior of the community
building to include new windows, doors, flooring, cabinetry work, electrical upgrades, restroom fixtures
and sewer line improvements. Due to its prime, centralized location - Legion Park and its amenities are
heavily used and in high demand. This is a rentable space that has become a lost revenue opportunity
due to unacceptable facility conditions. No improvements to this space have been conducted in over 30
years.
• Hutchins Street Square Climate Control System - $425,000: The pool at Hutchins Street Square operates
year-round. In winter, high humidity causes moisture to accumulate on walls/structures, creating
corrosive environment. In summer, the heat is intolerable due to lack of air conditioning. This pool is the
city's only indoor pool and is in high -demand and heavily programmed. The project will replace the non-
functioning climate control system for the pool.
Demolition of Park Structures - $250,000
1) Lawrence Park Restroom — the restroom is unusable and has become an attractive nuisance within
the property. The restroom has been out of service since 2015.
2) Softball Complex Concession — the concession stand and storage has not been in use since 2005
due to dilapidation. It has been challenging for PRCS staff to keep the building secure from vandalism.
3) Lodi Look Building — this building is located between the North parking lot of the Grape Bowl and
Lawrence Elementary School. The building has been abandoned since 2007 after the After School
Program moved to Lodi Unified campuses.
DeBenedetti Park - Cricket Sports Lighting - $600,000 — This project would provide a (4) new 70'
galvanized steel poles, LED sports lighting and Musco Lighting Controls. Other work would include
constructing a 12'x80' concrete pad (cricket pitch) with synthetic turf covering for "tape -ball" play, in the
southwest basin of DeBenedetti Park. The completion of this project will provide sports lighting for safe
night play along with energy saving with the LED lighting fixtures.
DeBenedetti Park Development - The development of DeBenedetti Park will be a phased approach
which started with an extensive collaboration between city staff and Lodi residents for the master
plan. Callander Associates were selected to design Phase I and Phase II of the park. 100%
construction drawings have been received and city staff including the Parks and Public Works
departments are reviewing the plans. Phase 1 and 2 of the project includes a parking lot (200+ parking
stalls off Century Blvd.), paths of travel with lighting, benches and trash receptacles, restroom and
concession building, playground areas including a tot lot on the Northwest corner of the park,
underground utilities, irrigation system, grass, trees and shrubs. Construction is estimated to cost
between $5M - $6M.
Tony Zupo Field Fire Restoration Project:
• Assemblymember Jim Cooper (D -Elk Grove) successfully advocated to Legislature to award the City
$750,000 to help rebuild Zupo Field's baseball field, dugouts, press box and grandstands which was
damaged by fire in 2019. Plans and Specifications have been drafted for the rebuild. Additional funding
will come from parks capital and insurance reimbursement to bring the park up to accessibility code.
The following is a list of other completed projects since 2017. These projects are almost exclusively infrastructure
replacement and repair. It's important to note that very few of these projects would be possible without the
additional funding provided by Measure L. Although Measure L does not directly fund all of these projects, the
City is less reliant on other general revenues for normal operations and thus able to use those revenues for
critical infrastructure repair.
• 2019 Blakely Park — North Pool Renovations: New pool plaster, pool decking, and deck equipment /
CDBG Funding
• 2019 Blakely Park — Shade Structures: (2) New fabric shade structures at North Pool area / CDBG
Funding
• 2017 Century Meadows Park — Playground Surfacing: Major repairs to poured -in-place playground
surfacing and top coating / Parks Capital
• 2017 Chapman Field: Replaced Scoreboard / Parks Capital
• 2017 DeBenedetti Park: Constructed 95 additional parking stalls, walking pathway from Heavenly Way
to Lower Sacramento Road, work also including lighting / Impact Fees
• 2019 DeBenedetti Park: New Park Master Park Development contract with Callander and Assoc. / Impact
Fees
• 2017 Emerson Park: Playground Surfacing — major repairs to poured -in-place surfacing and top coating
/ Parks Capital
• 2019 Emerson Park: Picnic Shelter Re-Hab — timber replacement, pressure washing and re -sealed
timbers / Parks Capital
• 2020 Emerson Park: New drinking fountain installation / Parks Capital
• 2020 Hale Park: Installed a New split HVAC unit for the community building / PRCS Donation Account
• 2017 Kofu Park: Replaced Scoreboard / Parks Capital
• 2019 Kofu Park: Installed New stainless steel restroom fixtures and plumbing / Parks Capital
• 2019 Kofu Park: Re -surfaced tennis courts and added game lines for pickle ball courts (4) / Parks Capital
• 2017 Lawrence Park: Playground Surfacing: Major repairs to poured -in-place playground Surfacing and
top coating / Parks Capital
• 2019 Legion Park: Re -surfaced tennis courts — converted (2) courts into (6) permanent pickle ball courts
/ Parks Capital
• 2019 Legion Park: Picnic Shelter Re-Hab — timber replacement, pressure washing and re -sealed timber
/ Parks Capital
• 2017 Lodi Lake Park: Northside paving improvements Rotary Area to box culvert pipe and tree removal
/ Parks Capital
• 2017 — 2022 Lodi Lake Park: Major Tree trimming and removals / Parks Capital and Measure L
• 2019 Lodi Lake Park: Northside lift station retro -fit work; new lids, pump guides, rails, brackets, and (1)
new chopper pump / Parks Capital and WW/W Funds
• 2018 PRCS Annex Building: Replaced HVAC roof -top units / Parks Capital
• 2018 PRCS Annex Building: Installed New silicone roofing coatings and removed sky -lite panels / Parks
Capital
• 2017 Peterson Park: Playground Surfacing — major repairs to poured -in-place surfacing and top coating
(West Playground Area) / Parks Capital
• 2017 Salas Park: Installed New standing seam metal roof system, trim, gutters and downspouts @
restroom building / Parks Capital
• 2018 Softball Complex: Replaced (2) Scoreboards / Parks Capital
• 2022 Vinewood Park: Installed New chain link fencing to separate ball field area and dog park area /
Parks Capital
Electric Utility Infrastructure
• 230kV Project Refresh (now slated for operation in 2028) — This project will bring transmission level
230kV electrical service to the City of Lodi and its residents, greatly increasing load serving capabilities
and reducing transmission access charges for our ratepayers. Following a change of scope and re-
evaluation of the original Northern San Joaquin 230kV Transmission Project, this project was again
approved for construction as part of the 2017-2018 Transmission Planning Process with a revised
scope. The California Public Utility Commission again evaluated alternatives to this project in 2021 and
recommended moving forward with the scope as previously defined. This project is underway with PG&E
leading the programmatic environmental assessment and public outreach efforts. We expect to submit
the draft PEA to the CPUC by the end of this year. Project completion and commercial operation is
planned for Q4 of 2028.
• Substation Modernization Project (improved reliability and coordination) — With many of the City's
electrical substation components quickly approaching end of useful life, the Electric Utility has requested
and received approval for over $1.5M worth of substation modernization projects for the upcoming
year. This work will modernize our electrical substation infrastructure, replace old and outdated
protective relays, and greatly improve system coordination capabilities with PG&E on our incoming 60kV
sub -transmission lines. Part of this project will be to standardize on industry relays and equipment which
our personnel are most familiar with and to provide additional training and tools to our staff for the
successful maintenance and operation of these systems going forward.
New 48MW Power Plant for System Reliability — Through an emergency reserve fund established by the
State of California and implemented by the Department of Water Resources, the City has an opportunity
to facilitate the installation of a 48MW gas power plant within its service territory to provide emergency
load serving capacity to its residents. This project will play a critical role for the City of Lodi in ensuring
that during an event like the one which took place on September 7th of this year, there remains sufficient
load serving capacity on PG&E's incoming sub -transmission system to provide power to the entirety of
the City. The project is being completely funded by the State and all installation and interconnection
costs will be reimbursed, along with substantial compensation for land use over a 5-7 year term.
#6 Copper Wire Replacement (228,000' Replaced Since 2017 a 70,000 Circuit Feet Remaining) — Old
and potentially brittle #6CU conductor has proven to be unreliable and potentially pose a safety risk if left
in operation beyond its useful life. The electric utility has taken a proactive approach to identifying and
replacing all of this conductor within the City's system in order to minimize both reliability and safety
concerns in the future. Since 2017 the utility has replaced over 228,000 feet of the cooper conductor and
replaced it with a much more versatile #2 ACSR conductor. Engineering continues to design and release
jobs for replacement on a near weekly basis and at this time we have only around 70,000 circuit feet of
conductor remaining. EU anticipates the remainder of this work to be completed within the next 24
months.
City Wide Pole Inspection, Treatment, and Replacement Program (6,000 poles tested and
replaced/stubbed as needed) — Prudent industry maintenance and inspection practice as well as G.O.
165 guidelines require intrusive inspections and testing of wood distribution poles on a defined basis. In
2021 (approximately 10 years since the last time the City had its wood pole population intrusively tested)
the City hired OSMOSE to come back and test all of our nearly 6,000 wood poles. During the months
this testing took place OSMOSE identified nearly 100 poles which needed to be strengthened via steel
"stubbing", as well as another 25-30 locations where the poles were deteriorated beyond safety standards
or reinforcement. The electric utility quickly designed jobs to have these poles replaced and all have
been removed from service at this time.
Expansion of Vegetation Management Work (Increased Annual Patrols and Trimming budget by 100%+)
— Routine patrol and trimming of vegetation along overhead distribution infrastructure is a critically
important reliability and safety activity. Allowing vegetation to encroach within unsafe distances of
electrical infrastructure can cause unwanted outages, fires, or other safety hazards. In 2020 after a
review of the rate of tree related outages and emergency trimming events, the electric utility more than
doubled the annual tree trimming budget and executed a 5 year extension with our vegetation
management provider to ensure continuity of service for this activity all the way to 2027. These efforts
have already paid significant dividends as we have seen a significant decrease in outages and customer
calls related to vegetation management issues with our facilities.
Municipal Infrastructure
• Animal Shelter and Other Projects — In early 2022, The City Council approved financing for a new Animal
Shelter to be constructed in Lodi. Planning is currently underway for a modern facility to include separate
areas for cats, dogs and exotic animals, a veterinary clinic, separate and quiet visitation spaces for
potential adoptions, quarantine zones and adequate outdoor space for the animals to enjoy. The project
will replace the City's current inadequate and dilapidated shelter. The new shelter will conform to all
American's with Disabilities Act (ADA) requirements, as well as all current requirements and best
practices for animal care. Additional funds will be available to program towards various projects including
additional playground replacements after completion of the shelter.
Addressing Homelessness Issues
The City has taken numerous steps to address the homelessness issue facing our City. The issue of
homelessness has reached crisis level in our state and nation, but efforts at the local level have helped to keep
the issue contained. The City has large scale projects to further minimize the negative impacts of homelessness
in Lodi in the short term.
Lodi Committee on Homelessness
The Lodi Committee on Homelessness is going strong under current chair Kathryn Siddle. She has coordinated
the committee to assist with homelessness issues throughout the community and has been a big support to the
new Temporary Emergency Shelter (Access Center). The Committee consists of members of the public, social
service providers, Lodi PD representative and related agencies, that all participate in their monthly meetings.
Harmony Homes Project
The Harmony Homes tiny homes project has been handed over to the operator Sacramento Self -Help Housing
who is working towards determining eligibility and getting the homes filled. Currently two out of the four homes
are occupied by new residents. We are excited to see all four homes occupied in the near future to provide
permanent housing to families experiencing homelessness.
Lodi ACCESS Center
The Temporary Emergency Shelter (Temporary ACCESS Center) on Sacramento Street opened July 22, 2022.
In just over two months, the shelter has experienced great success. Inner City Action has been contracted to
operate the shelter in collaboration with The Salvation Army. Inner City Action offers daily services such as 3
meals a day, laundry, mobile showers, scheduled haircuts, clean restrooms, phone charging stations, a clothing
closet, and more. The Temporary ACCESS Center has 49 beds available for individual's currently experiencing
homelessness in Lodi. The Shelter provides a consistent place where social service providers are able to meet
with those utilizing the facility and provide the services they need to progress in their lives.
Within the first 40 days, the Temporary ACCESS Center has helped:
• Transition 2 people to services
• Transition 10 people to Salvation Army
• United 3 people with family members
• Assist 3 people who gained employment
• Connect 13 people with Behavioral Health assistance
Homeless Liaison Officer
The Homeless Liaison Officer program in Lodi has provided a resource to those experiencing homelessness.
The officer assigned to this position goes out to encampments to establish relationships in an attempt to gain
trust and guide homeless persons to resources, family and housing. Since 2017, 200 people have been placed
with family or into programs, over 1,000 shopping carts have been removed from City streets, and well over
1,000 calls for service that would have been handled by a normal patrol officer have been responded to by the
Liaison Officer. Not only does this position take workload off the traditional crime prevention and enforcement
resources of the department, the Liaison Officer has the ability to better responded to transient calls due to
established relationship and experience working with his specific population ultimately leading to better, safer
outcomes for all involved.
Transient Outreach Teams
Officer Michael Cascio transitioned to the Homeless Liaison Officer Position at the beginning of 2022. In that
time, he has established beneficial relationships with many individuals experiencing homelessness in the Lodi
community. He has a passion for the job that comes through in all that he does. Officer Cascio leads a Transient
Outreach Team comprised of the Homeless Liaison Officer, Lodi Committee on Homelessness chair Kathryn
Siddle, Inner City Action staff, County Behavioral HealthA/Vhole Person Care, social service providers,
volunteers, and more. The team continues its efforts every other Wednesday with smaller teams going out
almost daily to ensure people experiencing homelessness or who are in need of services get the assistance they
need. With the Temporary Emergency Shelter opening, it has increased the number of people the outreach team
has been able to reach and provide access to services. Although enforcement is not the focus of these teams,
over 200 Lodi Municipal Code violation citations have been issued by the team since 2017. In addition, the team
has removed and returned 700 shopping carts.
Mental Health Liaison
The City utilizes a retired police annuitant who works to coordinate homeless response with county mental health.
The annuitant rides with county mental health employees monthly to locate those most in need and to consider
mental health aspects of encounters. This process has directed mental health to many subjects in crisis in an
effort to get mental health placements, evaluations and treatments as needed.
Providing downtown wi-fi internet and music
City Council approved utilization of American Rescue Plan Act funds to upgrade fiber infrastructure City wide to
build the back bone infrastructure necessary to eventually pull fiber to all properties within the City. Current
planning is underway for four phases of this project:
Phase 1 — Existing Lodi Fiber cable route that will be resized
Phase 2 — 16 added sites (IE. Parks, Traffic Signals, Animal Shelter, Transit Station and Library)
Phase 3 — Downtown Conduit along School Street
Phase 4 — Southern Ring along Harney Lane then up Ham Lane
Currently approved funding is anticipated to cover the planning and delivery of these fiber projects by end of
calendar year 2023. These phases will provide immediate benefit to the City for municipal uses and provide the
backbone infrastructure for future expansion for private use either through a municipal utility or through public
private partnership. Future discussions and policy decisions by City Council along with significant funding, either
public or private, are needed to advance this goal.
Beautification of highway overpasses
In 2017, the City partnered with Caltrans to beautify the highway the Union Pacific Overcrossing at Kettleman
Lane. The embankment slopes were cleared and replanted with ice plant ground covering and crepe myrtle trees
were planted along the top of the slopes. Staff is currently exploring options to add art features onto the protective
fences at various overcrossings along State Route 99.
City Council approved funding to construct significant entryway art to welcome visitors to Lodi and celebrate
Lodi's rich heritage. A total of $1 million has been approved, $500,000 each for art installations coming into Lodi
from 1-5 and at the Turner Road entrance to Lodi from Highway 99. Staff is working to contract with an artist for
the art installation on 1-5 and preparing a call for artists to solicit ideas for the piece at Turner Road and SR99.
City Staff and Caltrans are currently working on a landscape maintenance agreement for the newly awarded
Turner Road / SR99 Interchange Project. The agreement (scheduled for Council approval in December) will
authorize the City to conduct landscape maintenance on this portion of Caltrans right of way; and will assure this
future gateway to the City is properly maintained for residents and visitors entering from SR99.
One time funding available — Approximately $8 million
The City has experienced unprecedented and continuous growth for the last decade. At the same time, for the
last three fiscal years, the City has benefited from new revenue from Measure L. The last fiscal year, the City
experienced a historically challenging labor market that made hiring and maintaining workforce at or near
budgeted levels difficult resulting in significant unspent budget. The City also took advantage of a debt
refinancing opportunity that resulted in further budgetary savings.
The result of these factors is a historic one time budget surplus for Fiscal Year 2021/22 of over $8 million. Per
existing City Council Pension Stabilization Policy (PSP), the City Manager and Treasurer are required to invest
these funds along with all other operating fund's relative share into the City's Pension Stabilization Fund. The
City still has a sizeable pension issue to address as noted in this report, however surpluses of this size were
never envisioned by Staff prior to recommending the PSP to Council. By definition, these are surplus dollars
and the General Fund can support a contribution of this size but other funds would be seriously impacted if the
letter of the policy is followed at this time.
Staff finds it prudent to invest additional resources in the PSP or towards Additional Discretionary Payments to
CalPERS, but would also like to provide Council a specific time to discuss the use of these historic surplus
reserves. Should Council direct staff to set a future agenda for City Council goal setting, it may be prudent to
consider use of these reserves at that time.
FISCAL IMPACT: Not Applicable
FUNDING AVAILABLE: Not Applicable
OOA"u,,r X&W
Andrew Keys
Deputy City Manager/Internal Services Director
AGENDA ITEM C-15
CITY OF LODI
COUNCIL COMMUNICATION
TM
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, CalPERS 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 CalPERS 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:
Stephen Schwabauer, 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 1 Rall 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. To is 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 Dgvelgnment
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 Department
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 De artment
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.
Public 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 1 Roil 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. To ics s
B-1 Citv 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 Lodil 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
2
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
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. Adiournment
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
0
•, LODI M Y COUNCE►
Hutchins Street Square
125 South Hutchins Street, Lodi
TM
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 I 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 interpretaci6n de idiomas deben ser
recibidas por to menos con 72 horas de anticipaci6n a la reuni6n 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 dyLing consideration of the item.**
J:ICITYCLRKIFORMS1agn03-31-i5.doc 3125/15
AGENDA ITEM 0-01
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: City Council Goal Setting
MEETING DATE: March 31, 2015
PREPARED BY: City Manager
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'/Z 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 studylsolution 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 (PiO, 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
ii. Streets
iii. Utilities
Conclusion:
iv. Fleet
v. Transit
vi. White Slough
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
Exhlblt 2 — Electric Utility 10 Year CIP
Exhibit 3 — Public Works Project Priorities
EXHIBIT 1,
Page 1 of 3
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
-------------------------------------------------------------------
I 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
RA HL
City Clerk
.,,e foregoing document is certified to be a cornea
copy of the original on file In the City clerk's office.
Jennifer M. Robison
.Assistant City Cleric, City of Lodi
'3y: r ,
,ated:
2010-86
EXHIBIT 1,
Pagee of 3
City of Lodi
General Fund Reserve Policy
Purpose of Reserve Poiic
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 2010111, 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
(CAF R), commencing with the CAFR for FY 2009110, 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
plan within three months of approval of the Comprehensive Annual
Financial Report, commencing with the CAFR for FY 2009110, 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. [Ince assigned, funds may only be
released by resolution of the City Council.
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WDIMYCOUNCIL AGENDA - SPECIAL MEETING
Hutchins Street Square Date: May 26, 2015
125 South Hutchins Street, Lodi Time: 6:00 p.m. — 9:00 p.m.
TM
For information regarding this Agenda please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
A. Call to Order I 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.
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. Forraiolo at (209) 333-6702. Solicitudes de interpretaci6n de idiomas deben ser
recibidas por to menos con 72 horas de anticipaci6n a la reuni6n para ayudar a asegurar la disponibilidad. Llame a
Jennifer M. Ferraiolo (209) 333-6702.
"*NOTICE: Pursuant to Government Code §54954.3(x), public comments may be directed to the
legislative body concerning any item contained on the agenda for this meeting %eforrr (in the case of a
Closed Session item) or during consideration of the item. ""
J:%CITYCLRKSFORMS1agnO5-26-15.doc 5/5115
AGENDA ITEM B-01
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: City Council Goal Setting
MEETING DATE: May 26, 2015
PREPARED BY: City Manager
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
APPROVED:
Stephen Schwabauer
City Manager
Stephen Schwabauer, City Manager
Exhibit 1
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: City Council Goal Setting
MEETING DATE: March 31, 2015
PREPARED BY: City Manager
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 % 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 raw
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
$85,000 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 f=iscal 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:
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.
It. CITY COUNCIL
Mark Chandler
a. Economic developmentrobs/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 Nakanlshl
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.
1. 2/3 of the command staff will retire in the next 5 years
li. Over half of the Captain/supervisors will retire in the next 5 to 10 years
Ili. 50% of the Department will assume new positions and responsibilities
c. Explore, evaluate and Implement a comprehensive asset management and savings plan:
1. 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).
ill. 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
1. IT ($4 million at 6/30/14)
fl. 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
Vlll. 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 interestinglfun 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 Lodl'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 (PIO, 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 CADIRIVIS system: Current Sungard CSSI 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 (41140, 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:
1. Facilities
Ii. Streets
iii. Utilities
Conclusion:
Iv. Fleet
v. Transit
vl. White Slough
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 Pollcy
Exhlblt 2 — Electric Utility 10 Year CIP
Exhlblt 3 — Public Works Project Prlorides
EXHIBIT 1,
Page 1 of 3
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
I 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 Kat takian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
RA HL
City Clerk
rte iurngoing document Is certlfied to
ark's urreCL
ropy Of the original an file In the C'tY
Ice
Jennifer M. Robison
.Assiet/rtt City Clerk, City of Lodi
EXHIBIT 1,
Paof 3
V�
City of Lodi
General Fund Reserve Policy
Pur o e of eserve Poiic
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 Govemmental 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 2010111, the following General Fund
Reserves shall be funded, as funding Is available.
Commuted Fund 6a! nce
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 Mun€cipal Code.
If the General Fund — Catastrophic Reserve amount falls below 5% of
annual revenue, the City Manager shall prepare a pian within three
months of approval of the Comprehensive Annual Financial Report
(CAF R), commencing with the CAFR for FY 2009114, 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 nigher 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 f=und Reserve —
Catastrophic Reserve. Provisions below regarding action required if
the General Fund Reserve — Economic Reserve falls below 5%fl 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
fails 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 2009110, 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.
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EXHIBIT 2
March 31, 2015 Council Goal Setting - Voting Results By Category
Economfe Development
Coat
covncll Vows
Total Votas
RANK'
Economic Davelopmen*bsubushass altrection
TBD
1
3
6
Inlra"aureful n1l" to Industrinl pames
TBD
2
3
4
Economic Development IncanUve Program
TBD
1
4
2
Make Lodrs Fill Optic System Available to Business
TBD
1
2
9
Annex and mahe'shovel ready' commercial and Industrial lend
Tan
3
3
3
Iwo "role Goals of Vision 2020 Into fukee City goals
TBD
1
1
9
Inhestruciure to Gonerai Pinn Vndsvelo ed Area B"
THD
D
0
Downtown
Downtovn DeveiopmentrtourlamRfornoloss sokafnn"' TF1D 2 3 4
Gswn4own AaatdpWWlw�(duplEraW) TBD
Downtown Improvement TBD i 2 6
Downtown P£fesad Improvement Dlslrlct TBD 1 3 6
Homeless
Dovmlown Developmontna�rismAtomelaos eolutfoll— Tag 2 3 4
Homeless TBD 1 1 9
Public 8niet
$288,000
0
1 10
Explore, evnh mto and implamant a mmpmhonlnNa n9$at management and savings pian
GangBuppreallon"•
TSD
1
1
1E
Second Deng Intervenlion Worker"
844,000
2
2
7
Return Browned -W Fire Engine 1 to Full Service
91,1166,000
1
3
8
Lodi Fire Deparbnenl 9W prof"Vonet development and sueoeabn planning
TBD
0
1
10
increase sworn and civilian staffing
$1,626,000
0
7
1
Ganan
Gang Suppreaslon— TBD 1 1 9
Sevand G Tntorvonlion Worker"' 1144004 2 x 7
Fle"I Suetainahlli
$288,000
0
1 10
Explore, evnh mto and implamant a mmpmhonlnNa n9$at management and savings pian
3711.640 to 4395,ODD
1
1 9
Dovelop and Implement comprehensive budget and tinencial policy
350,040
0
3 6
WormstIm technotogy
94,000,000
0
1 70
Vehicles
92,40D,000
0
0
OPER
910,900,0D0
0
0
PERS
$93,900,000
1
1 9
Develop C -Wfdo Inlormalian rechn0 Stml lo Plan
TBD
0
D
Asset Preservation
Conilnub Phan ad Roof pro ett at H 8 8
$288,000
0
1 10
Fundhg for erosion atudyhnItlgs0on at Lodl Lake Park and grw twriting
$60,000
0
1 10
Fire Slallon Na. 1 Mohan mmodal
350,040
0
1 10
Other
indoor RacmUon Facililfoit
TBD
a
1 10
Eestafdo Improvement
TBD
1
2 8
E•Racords PLgtam I511000 to S8,ODD annual malnlenanim
525 DDD to t RQ t700
0
3 a
'Rank weighting by ratio of Council votes to total votes
" Boal recanmended by a ol0aan at the 3131 meeting
"'Goad to repeated In more then one category