HomeMy WebLinkAboutAgenda Report - April 7, 2004 E-17AGENDA ITEM Fw1q7
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Supporting the Continuous Operation of the Defense
Distribution Center San Joaquin
MEETING DATE: April 7, 2004
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt the attached Resolution.
BACKGROUND INFORMATION: The San Joaquin Council of Governments (SJCOG) has requested
that the cities within the County adopt a Resolution supporting the
continuous operation of Defense Distribution Center San Joaquin
(DDJC).
The DDJC is part of the Defense Department's nationwide military requisition and parts facilities. The
two sites in San Joaquin County are being considered as part of a consolidation and closure plan that will
be introduced to the President as early as 2005. The SJCOG staff report does a good job in outlining the
negative impacts to the County should DDJC be one of the facilities closed. Obviously, we would feel
some of that negative impact; therefore, we have included a Resolution calling for the City Council's
support of the facility.
FUNDING: NA
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Attachments
Konradt Bartlam
Community Development Director
APPROVED: Pte'
W Dixon Plynn, City Manager
WHEREAS, the San Joaquin Council of Governments (SJCOG) is a Metropolitan Planning
Organization (MPO), pursuant to State and Federal designation; and
WHEREAS, JC 's mission is to "advocate for regional and interregional issues"; and
WHEREAS, the Defense Distribution Center San Joaquin (DDJQ with installations and
facilities in Tracy and Lathrop has been an integral part of this region's well-being by
contributing $178 million annually to the local economy, leasing spaces for various agencies and
organizations, and providing employment opportunities to more than 2,500 local residents; and
WHEREAS, closures of both, or either of DDJC's two sites would create significant adverse
impacts to the local economy and the communities well-being, with a possible loss of local sales
and employment.
NOW, THEREFORE, BE IT RESOLVED, that SJ OG supports the continuous operation of
Defense Distribution Center San Joaquin; and
BE IT FURTHER RESOLVED, that SJCOG calls for support from the California State Senate,
Sen a.tor Michael J. Machado and Senator Charles Poochigian; and
BE IT FURTHER RESOLVED, that SJCOG calls for support or the California State
Assemblye State Assemblymember Greg.Agbazarian, State Assembly ember Guy Houston,
State I- Asea Barbara S, Matthews, and State Assembly member Alan Nakanishi; and
BE IT FURTHER F-ESOLVED, that SG calls for support ftorn Governor Arnold
Schwarzenegger-, and
BE IT FURTHER RESOLVED, that SCO Q calls for support from the U.S. Senate: Senator
Barbara Boxer and Senator Dianne Feinstein; and,
Resolution #R-04-24
Page 2 of 2
BE IT FURTHER RESOLVED, that SJCOG calls for support from the U.S. House of
Representatives. Representative Dennis Cardoza and Representative Richard Pombo.
PASSED AND ADOPTED this 26"' day of February 2004, by the following vete of the Board of
the San Joaquin Council of Dove eats, to wit:
AYES: Mayor Bilbrey, City of Tracy; Councilman Giovanetti, City of
Stockton; Councilman Harris, City of Manteca; Councilmember
Howard, City of Lodi; Supervisor Mow, San Joaquin County;
Councilman Restuccia, City of Ripon; Supervisor Sr lock, Sari
Joaquin County; Mayor Rhodes, City of Lathrop
Nle None
ABSENT., Councilman Haskin, City o 'calon; Mayor Podesto, City of
Stockton � 01—
Gloryanna Rhodes
Chair
RECOMMENDED131101-1 11 ij� 2,11M]11'
ACTION:
DISCUSSION:
Item ##13B
February 2004
Board
Support Defense Distribution Center San
Joao uin's Continuous Operation
Notices to adapt Resolution -04-24
Supporting the Continuous Operation of the
Defense Distribution Center San Joaquin
Background-,
Defense Distribution Center Sart Joaquin (DDJC) currently have two sites, one in Lathrop and
another one in Tracy. These saes are managed by the Defense Logistics Agency (DLA) under the
U.S. Department of Defense, In early 1999, DLA amounced its reconfiguration of DDJC by
transferring approximately X00 of Lathrop site's 800 employees to the Tracy site by late 2000,
These sites, along with 20 other sites nationwide, are responsible .for the majority of all U.S,
military r quis tions and repair parts. DLA is considering a consolidation and closure plana, and
will probably introduce a list of proposed closures to the President as early as 2005, DDJC's
Lathrop site is possibly one of the closures be] -ng considered, though all of the sites in the nation
will be evaluated,
Closure's Negative Impacts on Local l Co munities.
The closure of DDJC certainly will be adverse to the ell -being of local communities. DDJC
contributes 178 million annually to the local economy, based on DDJC's statistics. These two
DDJC sites currently employ approximately 1,525 people, mostly local civilians_ In addition,
DDJC also leases its space to other agencies and organization. There are approximately 1,000
employees working for these agericies and organizations in addition to DDJC's owri (-,mployees.
Based on SJCOG's analysis, an average San Joaquin resident would generate $14,816 taxable
sales annually.) Therefore, 2,525 local residents' continued employment would translate into
$37.4 million local taxable sales animally. Doss of jobs would create ripple effects to those
businesses that are currently serving DDJC and its employees, Thus, a closure does not only mean
short-term loss of employment, blit it could also create a significant hardship for local businesses
drat . I JC and its employees currently sustain,
Based on the CA Board of igsializaion data, the 15 -year average taxable sales to personal income ratio for San Joaquin residents in 3999 is
44.56%- CA Department of dousing and C.ommtmity Development statistics indicate that a one-person household in San Joaquin received a
mfg dian ;D�o ae of $33,250 in 200, thus sucli person would generate an average of $14,816 taxable sales annually.
An exwination of the transfer of 700 employees out of DDJUs Lathrop site in 1999 can further
demonstrate the extent of a closure's possible adverse effects to a local economy, Despite the fact
that many cities in San Joaquin have experienced aro increase in business establishments and
employment from 1999 to 2000, Lathrop has actually ,suffered a decline for both measures. The
number of business establisbine is and employment declined 6% and 5% respectively the year
after the transfer, based on the data from the US. Census Moreau. In addition, the data. from A
Board of Equalization indicate that taxable sales in Lathrop has a very moderate growth of 10%
between 1999 and 2000, significantly lower than the neighboring cities of Manteca teca (+16%) and
Stockton (4.14%), given though these indicators of slaw local economy cannot be entirely
attributed to the Lathrop area's lass of 700 jobs because of the transfer, it is certain that the lass of
these jabs and the associated economic ripple effects have created unfavorable local economic
conditions for a faster local economic growth.
Aside fi•orn the negative economic impacts, the distress of employment uncertainty for a large
number of DDJC employee families would also cast negative impacts on local communities'
cohesion, The social problems associated with the closure would be difficult to assessed, but such
problems ars: usually grave and long-term,
Recommendations,
The Defense Distribution CenUr San Joaquin has been an integral part of the region's economy
and ccs -nu ity well-being. San Joaquin County has already Inst about 2,000 jobs due to the
closure of the Rough and heady Island naval base in the early 1990s. Additional closure of any
DDCJ sites will cortainly create further hardship, both economically and socially, to local
con-anunities. Wherefore, SJCOG staff recomme Dds the board to adopt the resolution of
supporting the continuous operation of the Defense Distribution Center San Joaquin,
In addition, staff also recon m.mds the Board to authorize the Executive Director of SJCOG to
solicit support from local jurisdictions, legislators and interested parties to support the continuous
operation of the Defense Distribution Center San Joaquin.
Prepared by: Kai-yan Lie, heptanal PlamicT
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A RESOLUTION OF THE LODI CITY CO1_ftrU-_
SU . PPORTING THE CONTINUOUS OPERATION OF
DEFENSE D1 STRIBUTION CENTER OF
SAN JOAQUIN
WHEREAS, the San Joaquin Council of Governments (SJCOG) is a
Metropolitan Planning Organization (MPO), pursuant to State and Federal designation;
and
WHEREAS, SJCOG's mission is to "advocate for regional and interregional
issues"; and
WHEREAS, the Defense Distribution Center San Joaquin (DDJC) with
installations and facilities in Tracy and Lathrop has been an integral part of this region's
well-being by contributing $178 million annually to the local economy, leasing spaces for
various agencies and organizations, and providing employment opportunities to more
than 2,500 local residents; and
WHEREAS, closures of both, or either, of DDJC's two sites would create
significant adverse
rse impacts to the local economy and the communities' well-being, with a
possible loss of local sales and employment,
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
supports the continuous operation of DDJC; and
BE IT FURTHER RESOLVED that the City of Lodi calls for support from the
California State Senate: Senator Michael J. Machado and Senator Charles Poochigian;
and
BE IT FURTHER RESOLVED that the City of Lodi calls for support from the
California State Assembly: State Assemblymember Greg Aghazarian, State
Assemblymember Guy Houston, State Assemblymember Barbara S. Matthews, and
State Assemblymember Alan Nakanishi; and
BE IT FURTHER RESOLVED that the City of Lodi calls for support from
Governor Arnold Schwarzenegger; and
BE IT FURTHER RESOLVED that the City of Lodi calls for support from the
U. S. Senate: Senator Barbara Boxer and Senator Dianne Feinstein; and
BE IT FURTHER RESOLVED that the City of Lodi calls for support from the
U. S. House of Representatives., Representative Dennis Cardoza. and Representative
Richard Pornbo.
Dated: April 7, 2004
I hereby certify that Resolution No. 2004-61 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 7, 2004, by the following vote:
AYES. COUNCIL MEMBERS — Beckman, Hitchcock, Howard, Land, and
Mayor Hansen
SUSAN J. BLACKSTON
City Clerk