Lodi City Council Agenda - October 7, 2026
Lodi City Council — Regular Meeting
Wednesday, October 7, 2026 — Closed Session 6:15 p.m. | Regular Session 7:00 p.m.
Carnegie Forum, 305 West Pine Street, Lodi, CA 95240
Mayor Ramon Yepez | Mayor Pro Tempore Mikey Hothi | Councilmembers Cameron Bregman, Lisa Craig-Hensley, Alan Nakanishi
Summary
The Council’s only public hearing Wednesday would start the formal annexation of about 96.1 acres on Lodi’s west side, between West Vine Street and Kettleman Lane, west of Lower Sacramento Road. Applicant Dobbins Properties is asking the Council to pre-zone the land for homes, commercial uses, a mixed-use corridor along Kettleman, and a 10-acre public facility site that includes a 2-acre fire station reservation, then send the request to the San Joaquin Local Agency Formation Commission (LAFCO), the county board that approves city boundary changes. The packet says staff corrected the acreage figures to 96.1 acres and 19.91 mixed-use acres, but the pre-zoning map printed in the packet still shows the old 95.3-acre breakdown, and the Planning Commission resolution listed as Attachment 6 is missing from the packet.
The Regular Calendar and Ordinances sections are empty. Everything else sits on the Consent Calendar, which the Council approves with one vote unless someone pulls an item. That calendar holds eight sets of minutes reaching back to January 2025, a 180% increase to a planning consultant contract three months into its term, a $240,543 sole-source library software contract, Federal Transit Administration (FTA) purchasing rules, an after-the-fact extension of an expired transit advertising contract, and the Electric Utility’s year-end financial report.
The Electric Utility finished FY 2025/26 with $47.6 million in cash, 160% of its reserve target, but spent about $684,000 more than it took in. Its forecast reserve falls to 119% of target by FY 2029/30 as spending on the 230-kilovolt (kV) transmission connection ramps up, and it assumes 2% rate increases in FY 2029, 2030, and 2031.
The Council meets in closed session at 6:15 p.m. for the City Manager’s initial performance review and two lawsuits filed by former City Manager Scott R. Carney.
Meeting Details
Date and Time: Wednesday, October 7, 2026. Closed session 6:15 p.m.; invocation 6:55 p.m.; regular session no sooner than 7:00 p.m.
Location: Carnegie Forum, 305 West Pine Street, Lodi, CA 95240
Remote Viewing and Comment: Zoom webinar ID 821 7418 0304, passcode 123456; phone 1 253 215 8782 or 1 346 248 7799. The meeting also streams on the City’s YouTube channel (@cityoflodi_publicmeetings) and SJTV Channel 26.
Written Comment: Email councilcomments@lodi.gov, mail to City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241, or hand-deliver to 221 West Pine Street. Email and hand-delivered comments must arrive at least two hours before the meeting. Written comments go to the Council and into the minutes but are not read aloud.
Public Comment Limits: Five minutes per speaker on non-agenda items, one appearance per person. The Council cannot act on items not on the agenda (Government Code §54954.2).
Interim City Clerk: Elizabeth Haglund. The agenda’s interpreter-request contact is still listed as Olivia Nashed, (209) 333-6702.
Agenda
Closed Session (6:15 p.m.)
- C-2(a) Public employee performance evaluation, Government Code §54957(b): initial review of the City Manager.
- C-2(b) Existing litigation, §54956.9(d)(1): Scott R. Carney v. City of Lodi, San Joaquin County Superior Court No. STK-CV-UWM-2026-0003828.
- C-2(c) Existing litigation: Scott R. Carney v. City of Lodi, No. STK-CV-UOE-2026-0044713.
Closed session lets the Council discuss personnel and litigation privately under the Brown Act, California’s open-meetings law. Any reportable action is announced at C-4 when the Council returns to open session.
B. Presentations
B.1 Public Power Week, October 11-17, 2026. Mayor Pro Tempore Hothi presents the proclamation; Electric Utility Administrative Assistant Paige Valim accepts. The American Public Power Association (APPA) theme this year is “Your Community. Your Utility. Your Power.” Lodi Electric Utility (LEU), a city-owned utility serving Lodi since 1910, holds its 30th annual open house on October 15.
B.2 Fire Prevention Week, October 4-10, 2026. Councilmember Craig-Hensley presents. The National Fire Protection Association (NFPA) theme, “Charge into Fire Safety. Safe Charging Is a Superpower,” focuses on lithium-ion batteries in phones, e-bikes, and scooters. The staff report misspells the presenter as “Craig-Henley,” and the proclamation’s signature date is blank.
C. Consent Calendar
- C.1 Approve eight sets of minutes: January 30, 2025; May 28, 2025; June 3, 2025; June 18, 2025; August 27, 2025; January 28, 2026; July 28, 2026; September 2, 2026
- C.2 BKF Engineers Amendment No. 1, on-call neighborhood and planning services, +$144,000 to $224,000 (Community Development)
- C.3 Purchasing Policy revisions adding FTA procurement requirements (Budget)
- C.4 Sole-source agreement with Civica North America for the Spydus library system, $240,542.96, and $130,660 appropriation (Library)
- C.5 Revised improvement agreement, Blayke-Maisyn Estates, Tract 4163 (Public Works)
- C.6 Addendum No. 1 with San Joaquin County for the Sunnyside water line interconnect (Public Works)
- C.7 LCTOP certifications and authorized agent forms, Free Student Fares (Public Works)
- C.8 Vacate excess Pleasant Avenue right-of-way next to 228 First Street, keeping a utility easement (Public Works)
- C.9 Extend the Valley Outdoor Advertising transit ad agreement through December 31, 2026 (Public Works)
- C.10 Electric Utility FY 2025/26 quarterly financial update, Q3 and Q4 (Electric Utility)
D–E. Public and Council Comments on Non-Agenda Items
F. Public Hearings
F.1 Westside “F” Annexation (PL2024-023 A): resolution to file with LAFCO and detach from the Woodbridge Rural Fire Protection District; introduce an ordinance pre-zoning 9.2 acres General Commercial (GC), 19.91 acres Mixed Use Corridor (MCO), 10 acres Public and Community Facilities (PF), 49.8 acres Residential Low Density (RLD), and 7.2 acres Residential Medium Density (RMD). CEQA determination: Guidelines §15183.
G. Regular Calendar — no items | H. Ordinances — no items | I. Adjournment
The September 2 Council set an October 7 public hearing on the agricultural mitigation fee, parkland, planned development overlay, boundary change, and Williamson Act code amendments. That ordinance does not appear on this agenda, even though F.1 depends on the Williamson Act procedures it would create.
C.1 — Minutes
The Council is still clearing a minutes backlog. On September 2 it approved 26 sets at once; this week’s batch includes minutes 20 months old. Approved minutes become the official record of what the Council decided, so the older sets matter for the Carney litigation, the Access Center, and budget history.
a) January 30, 2025 — Special Joint Meeting with Boards and Commissions
The Council met with members of City boards and commissions from 4:04 to 5:21 p.m. for training by attorney Michael Colantuono on running public meetings: agendas, public comment, decorum, and handling disruptions. The training was informational; no action was taken. The minutes list only then-Mayor Pro Tempore Yepez among Councilmembers present.
b) May 28, 2025 — Special Meeting, FY 2025/26 Budget
Budget staff, led by Jennelle Baker, walked through the enterprise, special revenue, and capital budgets for FY 2025/26. Staff reported the Northern California Power Agency (NCPA) had put the Hydrogen Hub project on hold and the Electric Utility had lost a key account. Discussion covered transit, street funding, Harney Lane, and money for homeless services and the Access Center. The Council agreed to redirect a $745,000 skate park appropriation from 2023 to urgent park maintenance while Kofu Skate Park is repaired, discussed cricket fields, and expected a July budget amendment for unallocated capital. A closed session on labor negotiations produced no reportable action. Councilmember Nakanishi arrived at 4:24 p.m.; Councilmember Yepez was absent.
c) June 3, 2025 — Special Meeting, Growth Planning
Staff presented growth options within the Sphere of Influence (SOI, the area LAFCO expects Lodi to eventually serve) and the General Plan update. Discussion noted a 15-year gap since the last Municipal Service Review. Mayor Pro Tempore Hothi relayed developer complaints and asked for monthly meetings with builders. Councilmember Craig-Hensley raised Harney Lane and Highway 99 Measure K funding. Speakers included Greg Costa, Zahd Khan, and Mike Carouba. No action was taken. Councilmember Yepez was absent.
d) June 18, 2025 — Regular Meeting
Closed session. The Council discussed an April 12, 2025 email from the attorney for then-City Manager Scott Carney asserting whistleblower and retaliation claims and requesting a litigation hold, plus the Acting City Manager’s evaluation. No reportable action.
Consent calendar, 4-0 (Nakanishi absent), Resolutions 2025-91 through 2025-104, including:
- ClearGov budget software, three years, $107,955
- 2025 Wildfire Mitigation Plan
- Tree Lodi Residential Shade Tree Program, $233,205 (Resolution 2025-94)
- Backup generators at the Holt facility, $642,600.84; Quest jail intercom, $140,000
- Multi-way stop at Century Boulevard and Scarborough Drive; Road Maintenance and Rehabilitation Account (RMRA, state gas-tax) paving; Measure K bicycle claim; $250,000 striping
- SB 1383 biomass memorandum of agreement (state organic-waste law)
- Release of the February 2025 draft internal controls report, waiving the draft-record exemption in Government Code §7927.500
- Set July 16 hearings on the wastewater ENR (construction-cost index) adjustment, the General Plan Subsequent EIR, and the 8.81-acre Maverik annexation
The Antonio Amador Measure L committee appointment was pulled.
Public hearings: CDBG 2025/26 Action Plan (Resolution 2025-105; Community Development Block Grant, the federal housing and neighborhood grant); Lighting and Landscape Maintenance District 2003-1 levy (2025-106); Police military equipment use policy required by AB 481 (2025-107).
Regular calendar: After an Access Center update, the Council repealed Resolution 2023-204, which had authorized a request for proposals for Access Center operations, so the City could partner with San Joaquin County (Resolution 2025-108). It gave the Lodi Chamber of Commerce $35,000 toward forming a downtown Property-Based Business Improvement District (PBID), with reporting but no repayment required, 3-0 with Hothi recused as a downtown business owner (Resolution 2025-109). Staff updated the Council on Turner Road traffic after complaints from residents near Vintage Church. The meeting adjourned at 10:30 p.m.
e) August 27, 2025 — Special Closed Session
The Council met on anticipated litigation involving Scott Carney. Adam Lindgren of Meyers Nave reported the Council gave direction to counsel.
f) January 28, 2026 — Special Meeting, Strategic Vision and Protocol Manual (Kirst Hall)
The Council reviewed its Strategic Vision priorities: fiscal health, infrastructure, parks, public safety, economic development, downtown, housing, public well-being, and future financial needs. On the Protocol Manual, the Council directed staff to have the Mayor Pro Tempore become the next Mayor, rotate the offices by district, allow a 4/5 vote to override the rotation, require one year of Council service before serving as Mayor, and have the Mayor Pro Tempore mentored by the Mayor. Staff also reviewed SB 707, the 2025 Brown Act update: remote public comment by Zoom since January 1, 2026 and a meeting-disruption policy due by July 1, 2026. Adjourned 3:46 p.m.
g) July 28, 2026 — Special Closed Session
City Attorney recruitment, 9:07 a.m. to 12:42 p.m. No reportable action. Councilmember Nakanishi absent. City Manager Kara Reddig and Interim City Attorney Luebberke attended.
h) September 2, 2026 — Regular Meeting
Closed session (Bennitt, both Carney cases, Leatham, Interim City Clerk recruitment): no reportable action.
Consent, 5-0, approved 26 sets of minutes and:
- Set an October 7 hearing on the agricultural mitigation, parkland, and Williamson Act code ordinance after Building Industry Association CEO John Beckman asked that it be pulled; City Manager Reddig suggested a workshop first
- Set the October 7 annexation hearing (described then as 95.3 acres with 19.1 mixed-use acres), 4-0 with Bregman recused
- Resolution 2026-183 temporarily delegating Interim City Clerk authority to the City Manager after Walfred Solorzano’s September 17 departure
- Resolution 2026-184, Transportation Development Act (TDA) claim: $2,071,203 Local Transportation Fund and $61,987 State Transit Assistance
- Accepted mold abatement at 2 North Sacramento Street
- Resolution 2026-185, Division 1 construction management Amendment 3 for the animal shelter (Bregman recused)
Public comment covered human trafficking awareness, a concern about automated license plate readers (Nathaniel Atherstone), an unpermitted structure on Jamestown Court, and Randy Stewart’s petition for a charter with an elected strong mayor. Staff reported $2 million in state funding for the Fire Department secured through Assemblymember Heath Flora.
Actions: CDBG year-end performance report (CAPER, Resolution 2026-186); appointed Christina Castro Public Works Director effective October 5, 2026 (2026-187); rebid fire alarm monitoring, not to exceed $360,000 (2026-188); adopted Ordinance 2049 amending the CalPERS contract, 5-0. The Council adjourned in memory of Marybeth Jansen Bradford.
Open Issues to Watch — C.1
- Backlog. Minutes from January 2025 are only now coming forward. Lodi has no posted standard for how quickly minutes must follow a meeting.
- The October 7 code hearing is missing. The September 2 minutes set an October 7 hearing on the agricultural mitigation and Williamson Act ordinance. It is not on this agenda, and no continuance notice appears in the packet.
- Typos in the official record. The June 18, 2025 minutes print a resolution number as “20255-102.” Corrections should be made before approval.
- Carney record. The June 18, 2025 and August 27, 2025 minutes record the first closed sessions on the Carney claims; both lawsuits return to closed session this week.
C.2 — BKF Engineers On-Call Planning Contract
Community Development picked BKF Engineers from a pool of firms qualified through a Request for Qualifications. The contract began July 1, 2026 at $80,000, exactly the City Manager’s signing authority, so it never went to the Council. Three months in, staff asks to add $144,000, a 180% increase, for a total not to exceed $224,000.
BKF fills in after the departure of the Neighborhood Services Manager, who ran the City’s federal, state, and local housing grant programs, including CDBG. It also helps manage the Planning Division, because the Deputy Director/City Planner served as Interim Community Development Director for about seven months. A new Community Development Director has since been appointed. Staff cites long-range planning, Development Code amendments, annexations, and current applications. Funding comes from account 27082000.72450.
Open Issues to Watch — C.2
- Contract sized to avoid Council review. An $80,000 starting amount that matches the City Manager’s limit, followed by a 180% increase within one quarter, suggests the need was known in July.
- No hours, rates, or end date. The packet does not show BKF’s hourly rates, how much of the $80,000 is spent, or how long $224,000 is expected to last.
- Grant compliance. If BKF staff administer CDBG, the City should say who signs federal grant reports while the manager position is vacant.
C.3 — Purchasing Policy: Federal Transit Rules
An FTA audit of Lodi’s transit program found the City’s Purchasing Policy, last revised July 1, 2026, did not spell out federal procurement rules. Any purchase paid with FTA money, such as GrapeLine buses, must follow them. The revisions add:
- Rolling stock rules for buses and vans, including Buy America pre-award and post-delivery reviews: more than 70% of component cost must be domestic and final assembly must occur in the U.S.
- A statement that cooperative purchasing (buying off another agency’s contract) does not waive federal checks.
- An Independent Cost Estimate (ICE), the City’s own estimate prepared before bids arrive, and cost or price analysis above the federal Simplified Acquisition Threshold.
- A Federal Clauses Checklist and SAM.gov checks that a vendor is not suspended or debarred from federal work.
Local thresholds stay the same: City Manager authority $80,000, department directors $40,000, adjusted yearly by the San Francisco Bay Area Consumer Price Index; public works up to $75,000 by purchase order, $75,000-$220,000 informal bids, over $220,000 formal bids.
Open Issues to Watch — C.3
- Outdated federal threshold. The policy states the Simplified Acquisition Threshold as $150,000. The federal figure rose to $250,000 in 2018 and to $350,000 on October 1, 2025, per the Federal Acquisition Regulation threshold table. Federal rules let a city set a lower threshold, but the policy presents $150,000 as the federal number.
- Old section numbers. The policy cites 2 CFR 200.318-200.326 using numbering from before the 2024 rewrite of the federal grant rules. Cost and price analysis now sits at 2 CFR 200.324; the policy cites 200.323.
- Undated. The draft’s revision date reads “October XX, 2026.” Fixing these points before adoption avoids a repeat audit finding.
C.4 — Spydus Library System, Sole Source
The Lodi Public Library would replace its TLC integrated library system, the software behind its catalog, checkouts, holds, and patron accounts, with Civica’s cloud-hosted Spydus. The contract covers data migration, training, hosting, backups, security monitoring, support, and two professional service days a year. Staff asks to appropriate $130,660 from Library fund balance built up through FY 2025/26 vacancy and operating savings (account 12090000.72450).
| Cost element | Amount |
|---|---|
| Implementation (one time) | $105,160.00 |
| Year 1 subscription | $25,500.00 |
| Year 2 | $26,265.00 |
| Year 3 | $27,052.95 |
| Year 4 | $27,864.54 |
| Year 5 | $28,700.47 |
| Total, five years | $240,542.96 |
Subscription costs rise 3% a year. FY 2026/27 cost: $130,660 (implementation plus Year 1).
Open Issues to Watch — C.4
- Three years or five? The staff report and resolution call this a five-year, $240,542.96 agreement. Section 2.6 of the contract runs October 31, 2026 to October 31, 2029, three years, with one two-year option. Section 4.17 says the agreement controls over its exhibits, so Years 4 and 5 pricing is not locked in unless the City exercises the option.
- The vendor wrote the sole-source justification. The justification letter is signed by Civica’s Vice President of Sales, dated October 1, 2026, and speaks in the first person about “our requirements.” It names no competing systems the Library evaluated.
- Getting the data out. The contract has no specific exit clause for exporting catalog and patron records in a standard format if the City leaves Civica, beyond the general 10-day document delivery in Section 4.19.
- Liability limits. Civica’s liability is capped at 150% of the prior 12 months of charges, and data-breach liability at $2 million.
- Template details. The pricing proposal says “ex GST,” an Australian sales-tax term; support hours are 8 a.m.-5 p.m. Eastern; exhibit letters don’t match the agreement’s references; the agenda title reads “(240,543)” without a dollar sign.
C.5 — Blayke-Maisyn Estates, Tract 4163
This five-lot subdivision, plus a remainder parcel, sits on the east side of Lower Sacramento Road between Tejon Street and Yosemite Drive (APN 029-060-66). The Council approved the final map August 20, 2025. The developer, the Shah Family Revocable Trust, needs a revised improvement agreement, the contract that guarantees streets, utilities, and frontage get built. The revision adds Dalbir Johal as a second-party guarantor backing the surety bonds and adds the developer’s contractor for insurance purposes. Security stays at $184,400 performance bond and $184,400 labor and materials bond, with 365 days to finish. The lots are annexed into Community Facilities District (CFD) 2007-1, CFD 2007-1 (Public Services), which charges new development an annual special tax to help pay for City services.
Open Issues to Watch — C.5
- The contractor’s name is blank in the agreement.
- Exhibits C (billing) and D (insurance), which the agreement references, are not in the packet.
C.6 — Sunnyside Water Line Interconnect
Sunnyside Estates is a 21-lot county subdivision north of Harney Lane and east of Lower Sacramento Road. Its water system is run by San Joaquin County through the Sunnyside Water and Street Lighting Maintenance District. In 2000 the City agreed to supply Sunnyside with Lodi water through a 10-inch line, under agreement A-00-918 (Council authorization October 20, 1999; signed October 17, 2000). A 40-year U.S. Department of Agriculture Rural Utilities Service loan and grant paid for the County’s system, and the agreement stays in force while that loan is outstanding.
Addendum No. 1 has the County replace about 1,600 feet of aging main and build a new 8-inch line to the City’s 8-inch main in Tehama Drive. A second connection “loops” the system so water can reach a hydrant from two directions, improving fire flow and keeping homes in service during a break. The County pays all costs, finishes within one year, pays a $6,760 fee for a 6-inch meter, and keeps paying outside-city water rates. Sunnyside’s original wells have been destroyed, so the neighborhood depends entirely on Lodi water.
Open Issues to Watch — C.6
- Outdated City signature block. The addendum misspells the City Manager as “Kara Redding,” lists Olivia Nashed as City Clerk, and lists Sean Nathan as Interim Public Works Director, though Christina Castro became Director October 5. The County signed in September.
C.7 — Free Student Fares, LCTOP Grant
The Low Carbon Transit Operations Program (LCTOP) is a state program, administered by Caltrans, that spends cap-and-trade money on transit service that cuts greenhouse gases. Lodi uses it to pay for free GrapeLine rides for K-12 students, a program in place since 2019. Students took 97,539 trips in 2025. The FY 2025/26 allocation covers the program through November 2028 and requires no local match. Staff estimates it replaces 136 to 271 car trips a day.
| Source | Cycle A | Cycle B | Total |
|---|---|---|---|
| Lodi direct share | $10,349 | $6,631 | $16,980 |
| San Joaquin Council of Governments (SJCOG) share | $79,711 | $51,070 | $130,781 |
| Total | $90,060 | $57,701 | $147,761 |
The authorized-agent form names City Manager Kara Reddig, Interim Public Works Director Sean Nathan, and Transportation Manager Julia Tyack. The Caltrans certifications require a dedicated bank account within 30 days of receiving funds, annual activity reports each October 30, a closeout report, and greenhouse-gas reporting under state Air Resources Board guidelines.
Open Issues to Watch — C.7
- The form names Sean Nathan as Interim Public Works Director, a title that changed October 5.
- The October 30 annual report is due three weeks after this vote.
C.8 — Pleasant Avenue Right-of-Way, 228 First Street
Pleasant Avenue’s right-of-way is 70 feet wide, but the street and sidewalk use less than that. Property owner Eric Peters asked the City to give up a 16.6-foot strip, 1,616 square feet, behind the sidewalk next to his parcel at 228 First Street. The City would keep a public utility easement (PUE) over the strip for existing overhead lines and future utilities. The street dates to the 1887 Burr’s Addition map; the City vacated nearby pieces in 1909 and 1957. Staff uses the summary vacation procedure in Streets and Highways Code §8334 and §8334.5, which lets a council vacate excess right-of-way without a public hearing. No fiscal impact.
C.9 — Transit Advertising Contract Extension
Valley Outdoor Advertising sells ads on GrapeLine buses and the City’s 11 bus shelters and pays the City the greater of a revenue share (46% this year) or a minimum annual guarantee (MAG) of $50,000, paid monthly at $4,166.67. The agreement expired September 30, 2026. Amendment No. 2 would extend it through December 31, 2026 on the same terms while the City finishes a new procurement: proposals due October 9, Council award December 2, new contract January 1, 2027. Revenue goes to account 60000000.57321.
| Fiscal year | Minimum guarantee | Revenue received | City share | Vendor’s 2021 projection of City share |
|---|---|---|---|---|
| FY 2021/22 | $33,750 | $39,756 | 43% | $44,789 |
| FY 2022/23 | $45,000 | $40,758 | 43% | $47,570 |
| FY 2023/24 | $45,000 | $41,250 | 44% | $54,312 |
| FY 2024/25 | $50,000 | $49,140 | 45% | $64,575 |
| FY 2025/26 | $50,000 | $50,004 | 46% | $71,155 |
| Total | $223,750 | $220,908 | $282,401 |
Projection column applies the revenue-share percentages in Valley Outdoor’s 2021 proposal to the gross revenue in its own “Estimated Five-Year Cash Flow.” Actual payments came to 78% of that projection.
The City received less than the guaranteed minimum in three of five years. Staff attributes the shortfall to deductions the contract allows, including replacement glass panels at shelters and interior bus ads. The 2021 contract ran October 1, 2021 to September 30, 2024, with two one-year options and a five-year maximum. Amendment No. 1 (November 12, 2024) extended it to September 30, 2025; Extension No. 1 (September 3, 2025) to September 30, 2026.
Open Issues to Watch — C.9
- Past the five-year cap. Section 2.7 limits the agreement to five years including options. The term from October 2021 through September 2026 used all five; this amendment goes beyond that limit.
- Retroactive. The contract lapsed September 30, a week before the vote. The packet doesn’t say whether ads stayed up or payments continued in the gap.
- Stale signature block. Amendment No. 2 lists Walfred Solorzano, who left September 17, as attesting Interim City Clerk.
- Deductions. The packet does not total the deductions that pushed payments below the guarantee. The new RFP is the chance to limit them.
- Vendor proposal language. Valley Outdoor’s 2021 proposal, reprinted in the packet, cites its “great relationship with many of the decisionmakers in Lodi” and says two Councilmembers helped one of its prospective clients. Evaluators of the new proposals should score on revenue and service.
C.10 — Electric Utility Year-End Financial Report
Lodi Electric Utility is a city-owned utility; its customers used about 447 million kilowatt-hours in FY 2025/26. This report covers the year that ended June 30, 2026; the attached exhibit is dated September 2, 2026.
| Line | Budget | Actual | % of budget |
|---|---|---|---|
| Sales revenue | $91,949,630 | $89,354,292 | 97% |
| Development impact fees | $320,930 | $277,364 | 86% |
| Other revenue | $8,422,580 | $4,907,486 | 58% |
| Total revenue | $100,693,140 | $94,539,143 | 94% |
| Purchased power | $55,771,040 | $53,760,035 | 96% |
| Non-power operations | $23,827,550 | $20,409,581 | 86% |
| Capital projects | $8,709,923 | $4,793,814 | 55% |
| Debt service | $4,176,130 | $4,176,125 | 100% |
| Cost of service transfer to General Fund | $4,318,420 | $4,318,420 | 100% |
| PILOT transfer to General Fund | $7,765,150 | $7,765,150 | 100% |
| Total expenses | $104,568,213 | $95,223,125 | 91% |
| Revenue less expenses | –$3,875,073 | –$683,982 |
Other revenue fell short because the Council approved a $2.5 million multi-year write-off of delinquent utility accounts, and about $830,000 in Low Carbon Fuel Standard (LCFS) credit sales and about $700,000 in cap-and-trade auction proceeds slipped into FY 2026/27. Non-power spending came in low because of vacancies among line workers, metering, and engineering staff. Capital spending reached only 55% of budget: the California Public Utilities Commission’s approval of the 230 kV project came late (about $1.6 million rolls forward) and the Electric Vehicle Master Plan started late (about $883,000 rolls forward). The Utility sent the General Fund $12.1 million in FY 2025/26: a $7.8 million payment in lieu of taxes (PILOT) and $4.3 million for City services.
Cash and Reserves
Cash totaled $47,579,404 on June 30: operating and capital funds $30,510,792, public benefits $11,409,715, greenhouse gas $4,848,996, impact fees $1,164,816, solar surcharge $375,133, and a negative $730,048 in the LCFS fund because money moved to EV projects before the state payment arrived. The Council’s reserve target is $29,719,600.
Available cash: FY26 $47,579,404; FY27 $39,134,784; FY28 $39,569,112; FY29 $39,421,568; FY30 $37,911,650. Days of cash: 195, 145, 145, 141, 129.
The forecast assumes all budgeted positions are filled, 230 kV bonds are issued by the end of FY 2027/28 and reimburse earlier project spending, and rates rise about 2% a year in FY 2029, 2030, and 2031. The last base rate increase took effect July 1, 2024.
Capital Plan
Totals: FY26 actual $4,793,814; FY27 budget $6,093,000; FY28 $8,475,000; FY29 $15,335,000; FY30 $16,790,000. The 230 kV Interconnection Project accounts for $33.45 million of the four forward years.
The 230 kV Interconnection Project would build a new 230-kilovolt connection between Lodi’s system and the regional transmission grid. The Utility plans to finance it with bonds in late FY 2027/28.
Rates Compared With PG&E
Lodi rates include the Energy Cost Adjustment (ECA), a pass-through charge for power costs. Residential $0.2298/kWh vs. PG&E $0.3991 (42% lower); commercial $0.2013 vs. $0.3943 (49%); industrial $0.1555 vs. $0.3318 (53%); system average $0.1999 vs. $0.3777 (47%).
Sales totaled 447,093,866 kWh against a 442,897,875 budget, as industrial use beat its estimate by 7%. The Risk Oversight Committee met six times January-June, buying forward power, gas, and resource adequacy capacity, approving the FY 2027 reserve target, and approving Amendment 1 to Transmission Agency of Northern California (TANC) Project Agreement No. 3. The Utility completed its 2026 Wildfire Mitigation Plan and convened an AMI 2.0 working group on next-generation smart meters. Forward hedges cover 86% of expected load in Q4 2026, falling to 68% by Q3 2027, all above the committee’s targets.
Open Issues to Watch — C.10
- $70 million or $51.5 million? The staff report says capital projects total “nearly $70 million over the next 5 years.” The five-year table in the exhibit adds to $51.5 million including FY 2025/26 actuals, $46.7 million for the four forward years. Even with the $3.5 million rollover, the figures don’t reconcile.
- Spending outran revenue. Expenses exceeded revenue by about $684,000, and $1.5 million of the shortfall was one-time timing that comes back in FY 2027.
- Reserves decline. The reserve falls from 160% to 119% of target by FY 2029/30, before 230 kV construction peaks. Staff says reserves are “sufficient through Fiscal Year 2028.”
- Typo. The exhibit prints the impact fee budget as “320.930.”
F.1 — Westside “F” Annexation and Pre-Zoning
Applicant: Dobbins Properties, Inc. | File: PL2024-023 A
Area: 20 parcels plus the Taylor Road right-of-way, about 96.1 acres, bounded by West Vine Street (north), Kettleman Lane/Highway 12 (south), and South Lower Sacramento Road (east); east boundary excludes the county homes along Lower Sacramento Road
Current status: Unincorporated San Joaquin County, county agriculture zoning, inside Lodi’s Sphere of Influence since 2008
Council actions: (1) resolution authorizing a LAFCO application and detachment from the Woodbridge Rural Fire Protection District; (2) introduce the pre-zoning ordinance; (3) direct staff to file with LAFCO
Planning Commission: Recommended approval 5-0 on August 12, 2026 (one vacancy, one absence)
Staff: Contract planner Matt Diaz and Deputy Director Cynthia Marsh
What Annexation and Pre-Zoning Mean
Annexation moves land from county to city control. State law, the Cortese-Knox-Hertzberg Act, requires a city to “pre-zone” land before LAFCO acts, so owners know what city zoning will apply. The pre-zoning must match the General Plan. Annexation would detach the area from the Woodbridge Rural Fire Protection District; the Lodi Fire Department would serve it. Development still needs master planning, subdivision maps, and further public hearings, and the applicant pays the fees.
Proposed Pre-Zoning
| Zone | Where | Ordinance acres | Packet pre-zone map acres | Parcel list acres |
|---|---|---|---|---|
| Residential Low Density (RLD) | West and central Taylor Road parcels | 49.8 | 50.2 | 49.22 |
| Mixed Use Corridor (MCO) | Six parcels on Kettleman Lane/Hwy 12 | 19.91 | 19.1 | 19.91 |
| Public and Community Facilities (PF) | 027-050-03, 345 E. Taylor Road (zone left blank in the parcel list) | 10.0 | 9.6 | 10.0 |
| General Commercial (GC) | 15671 N. Lower Sacramento Rd, on West Vine | 9.2 | 9.2 | 9.14 |
| Residential Medium Density (RMD) | Six parcels on East Taylor Road | 7.2 | 7.2 | 7.25 |
| Total | 96.11 | 95.3 | 95.52 |
The parcel-list total excludes the Taylor Road right-of-way, which accounts for the remaining roughly 0.6 acre of the 96.1-acre area.
Lodi’s 2025 General Plan Amendment redesignated the 19.91 Kettleman acres from Office to Mixed Use Corridor, and its Subsequent Environmental Impact Report (SEIR) studied the change. Staff relies on CEQA Guidelines §15183, which skips new environmental review when a project matches a General Plan already covered by a certified EIR, unless the site has impacts that EIR didn’t study. The area is Phase 1 of the City’s Growth Management Plan and is bordered by the City on three sides, with water, sewer, roads, and electric lines at its edges.
Fire Station and Public Site
The annexation would be conditioned on reserving about two acres for a future west-side fire station, which staff expects to share a building with a police substation. Building and paying for the station are not conditions of the annexation, and the packet gives no cost or timeline.
Owner Support and the County Island
A 2025 landowner poll, run by the City and the applicant at LAFCO’s direction, found the western properties in favor and the eastern properties, mostly homes along Lower Sacramento Road and Taylor Road, opposed. LAFCO advised cutting the eastern properties out, which leaves an unincorporated county “island” surrounded by Lodi. Staff held a community meeting March 31, the Planning Commission hearing August 12, and a neighborhood meeting at an owner’s home September 16. Commission speakers raised a private easement dispute and asked about joining later annexations.
Williamson Act Farmland
Three parcels totaling about 40 acres, the northern Taylor Road parcels, are under Williamson Act contracts. Under these contracts owners keep land in farming in exchange for lower property taxes; contracts run 10 years and renew automatically each year unless an owner gives notice of nonrenewal. Lodi’s code has never had procedures for taking over these contracts after annexation. Staff says the pending “Phase 4 Code Amendments” would let the City assume, nonrenew, and cancel them. The contracts would stay in place after annexation, and the land can’t be developed until they end. The Attachment 7 map also shows prime farmland on the General Commercial parcel.
Open Issues to Watch — F.1
- The “corrected” map isn’t in the packet. Staff says acreages were corrected to 19.91 mixed-use acres and 96.1 total “as reflected in the corrected prezone exhibit.” The Pre-Zoning Exhibit printed as Attachment 4 still shows 50.2 RLD, 9.6 PF, and 19.1 MCO, which add to 95.3 acres. The ordinance and the map disagree on three of five zones.
- Planning Commission resolution missing. Attachment 6 is listed but not included; the packet jumps from Attachment 5 to Attachment 7. The Council can’t see the conditions the Commission recommended.
- Largest parcel missing from the ordinance title. The ordinance title lists 19 parcel numbers and omits 027-050-01, the 20-acre parcel at 179 E. Taylor Road. Finding C in the ordinance still says “95.3-acre.” The ordinance was approved as to form August 7, before the Commission hearing and the corrections.
- Which county zone? The staff report calls current zoning “AG-20,” the ordinance “AG-40,” and the zoning map legend “AU-20” (Agriculture-Urban Reserve). The ordinance also refers to “West Kettleman Road.”
- The Williamson Act ordinance isn’t here. The code amendments that would let Lodi assume and cancel contracts were set for hearing tonight on September 2 but aren’t on the agenda. The fire station site parcel sits inside the contracted area on Attachment 7.
- Survey map can’t be read. The Attachment 5 poll map is printed in grayscale; “in favor” and “no response” are nearly the same shade, so readers can’t verify which owners supported annexation.
- Property tax split. The packet doesn’t mention the property tax exchange agreement the City and County must negotiate before LAFCO processes the application, or the cost of serving the area.
- Fire district name. The September 2 minutes say “Woodbridge Fire Protection District”; this item says “Woodbridge Rural Fire Protection District.”
References
- City of Lodi, City Council meeting calendar, agendas, and packets (Legistar)
- City of Lodi, Agenda Center
- City of Lodi, Public meetings video channel
- City of Lodi, Lodi Electric Utility
- City of Lodi, Transit (GrapeLine)
- City of Lodi, Bids and RFPs, including the transit advertising solicitation
- San Joaquin LAFCO, Local Agency Formation Commission
- California Department of Conservation, Williamson Act program
- Caltrans, Low Carbon Transit Operations Program
- Acquisition.gov, Federal acquisition threshold changes effective October 1, 2025
- eCFR, 2 CFR 200.324, Contract cost and price
- NFPA, Fire Prevention Week