Lodi City Council Meeting - February 4, 2026
Lodi City Council Meeting Agenda
Meeting Overview
Date: Tuesday, February 4, 2026
Location: Carnegie Forum, 305 West Pine Street, Lodi, CA
Closed Session: 6:30 p.m.
Regular Session: 7:00 p.m.
City Clerk: Olivia Nashed
Council Members: Mayor Ramon Yepez, Mayor Pro Tempore Mikey Hothi, Councilmember Cameron Bregman, Councilmember Lisa Craig-Hensley, Councilmember Alan Nakanishi
Executive Summary
The February 4, 2026 City Council meeting addresses critical governance and operational matters including executive leadership transitions, labor negotiations, and significant budget adjustments. The agenda features three Closed Session items, nine Consent Calendar items totaling over $800,000 in appropriations, and three major Regular Calendar items including a $2.95 million mid-year budget increase and selection of the permanent Access Center operator.
Key Highlights
- Executive Leadership: Closed Session discussion on Interim City Manager appointment
- Labor Relations: Ongoing negotiations with four of nine bargaining units requiring additional consulting support ($60,000)
- Budget Impact: Mid-year adjustments totaling $2.95 million in additional expenditures primarily driven by MOU salary/benefit changes
- Homeless Services: Selection of Outreach Ministries International to operate permanent Access Center and Emergency Shelter based on comprehensive evaluation
- Infrastructure: Nearly $2 million in capital projects including new skatepark planning, cricket field improvements, and facility repairs
Public Participation Options
The City of Lodi provides multiple avenues for public engagement in Council proceedings:
| Method | Details |
|---|---|
| In-Person | Carnegie Forum, 305 W. Pine Street, Lodi |
| Zoom Webinar | Meeting ID: 890 6230 3364 | Passcode: 599633 Join Zoom Meeting |
| Phone | 1-253-215-8782 or 1-346-248-7799 |
| councilcomments@lodi.gov (received no later than two hours prior) | |
| Mail/Hand Delivery | City Clerk's Office, P.O. Box 3006 or 221 W. Pine Street, Lodi, CA 95240 |
Note: Public comments received via email, mail, or hand delivery will be provided to the City Council and included in official minutes but will not be read aloud at the meeting. Public comment time is limited to five minutes per speaker for non-agenda items.
Closed Session Items (6:30 p.m.)
C-2(a): Public Employee Appointment - Interim City Manager
Legal Authority: Government Code §54957(b)
Position: One (1) Interim City Manager
The Council will deliberate in Closed Session regarding the appointment of an Interim City Manager to provide executive leadership during the transition period. This confidential discussion reflects the City's ongoing efforts to maintain stable administrative leadership.
C-2(b): Conference on Labor Negotiations
Legal Authority: Government Code §54957.6
Human Resources Representative Present
Bargaining Units Under Discussion:
- International Brotherhood of Electrical Workers (IBEW)
- Lodi City Mid-Management Association (LCMMA)
- AFSCME General Services and Maintenance Operators
- Police Mid-Managers
- Lodi Police Officers Association
- Lodi Police Dispatchers Association
- Lodi Professional Firefighters (LPF)
- Lodi Fire Mid-Management
- Confidential General Services
- Confidential Mid-Managers
- Executive Managers
- Appointed Employees
Current Status: As of December 2025, the City has successfully entered into successor Memorandum of Understandings (MOUs) or Statements of Benefits with five of nine bargaining units. Negotiations are ongoing with four remaining groups: General Services, LCMMA, LPF, and Maintenance & Operators.
C-2(c): Conference with Legal Counsel - Anticipated Litigation
Legal Authority: Government Code §54956.9(d)(2)
Number of Cases: Two (2) matters with significant exposure to litigation
The Council will meet in Closed Session with legal counsel to discuss potential litigation matters. The confidential nature of this item protects the City's legal strategy and negotiating positions.
Consent Calendar Overview
The Consent Calendar contains nine routine administrative items to be approved with a single motion unless a Council member or member of the public requests separate discussion. These items represent standard operational matters that have been reviewed by staff and legal counsel.
| Item | Title | Department | Fiscal Impact |
|---|---|---|---|
| C.1 | Patrick Clark Consulting Amendment No. 2 | IS-HR | $120,000 total NTE |
| C.2 | Lodi Lake North Restroom Restoration Acceptance | PRCS | $516,717 |
| C.3 | United Site Services Amendment No. 2 | PRCS | $136,826 total NTE |
| C.4 | Public Transportation Agency Safety Plan Update | PW | No direct impact |
| C.5 | Uniform Rental/Cleaning Services Bid Authorization | PW | Annual budgeted |
| C.6 | District 1 Non-Profit Funds - Lodi Sister City Committee | CLK | $15,870 |
| C.7 | District 1 Non-Profit Funds - Lodi Boys and Girls Club | CLK | $4,130 |
| C.8 | Lodi Improvement Committee Vacancy Posting | CLK | None |
| C.9 | Set Public Hearing - Electrical Service Code Amendment | EU | <$30,000 annually |
Detailed Consent Calendar Items
C.1: Labor Relations Consulting Services Amendment
Recommended Action: Adopt resolution authorizing Amendment No. 2 to Patrick Clark Consulting, a sole proprietorship, for labor relations consulting services
Background and Context
The City of Lodi has been utilizing Patrick Clark Consulting since September 3, 2024 to provide expert guidance on labor negotiations with nine distinct bargaining units. The consulting relationship has proven valuable as the City works to finalize successor Memoranda of Understanding (MOUs) with its diverse workforce.
Agreement History
| Date | Action | Amount |
|---|---|---|
| September 3, 2024 | Original Agreement | $30,000 |
| October 2025 | Amendment No. 1 | $60,000 (increased from $30,000) |
| February 4, 2026 | Amendment No. 2 (proposed) | $120,000 total NTE (increase of $60,000) |
Negotiation Progress
Completed MOUs (5 of 9 units): The City has successfully concluded negotiations with five bargaining units, demonstrating the effectiveness of the consulting support.
Ongoing Negotiations (4 remaining units):
- General Services
- Lodi City Mid-Management Association (LCMMA)
- Lodi Professional Firefighters (LPF)
- Maintenance and Operators (MO)
Strategic Vision Alignment: 3C. Fiscal Health - Ensure elected leaders and staff retain focus on fiscal priorities
Funding Source: Account 10020302.72450
Fiscal Impact: Not-to-exceed $120,000 total contract value
C.2: Lodi Lake North Restroom Restoration Project Completion
Recommended Action: Accept completed improvements under contract for Lodi Lake North Restroom Restoration Project
Project Background
On June 4, 2023, the Lodi Lake North restroom facility was severely damaged by an arson fire, requiring comprehensive restoration to bring the facility back into service and bring it into compliance with current Americans with Disabilities Act (ADA) standards.
Project Timeline
| Date | Milestone |
|---|---|
| June 4, 2023 | Arson fire damages facility |
| October 18, 2023 | Council approves design contract with WMB Architects, Inc. |
| November 20, 2024 | Council approves plans and specifications |
| March 5, 2025 | Council awards construction contract to Kaler General Contractors, Inc. |
| August 7, 2025 | Work suspended due to material procurement delays |
| October 21, 2025 | Work reinstated |
| November 8, 2025 | Project completion |
Project Cost Breakdown
| Item | Description | Amount |
|---|---|---|
| Original Contract | Kaler General Contractors, Inc. | $469,000 |
| Change Order 1 | Upgraded toilet partitions (brushed stainless steel), plaster repair, electrical panel relocation | $33,574 |
| Change Order 2 | Pump panel configuration adjustments | $3,807 |
| Change Order 3 | Work suspension compensation, additional pump operations | $10,336 |
| Total Final Contract Price | $516,717 |
Scope of Improvements
- Fire Damage Restoration: Complete replacement of fire-damaged interior and structural components
- Enhanced Finishes: Upgraded from powder-coated steel to brushed stainless steel toilet partitions for durability
- Plaster Repair: Removal of fire-damaged plaster and application of new skim coat on interior and exterior masonry walls
- Electrical Upgrades: Relocated electrical panel to uni-strut rack, new disconnect switch, and exterior-mounted electrical enclosures for lift station pump operations
- ADA Compliance: Facility now meets current Americans with Disabilities Act standards
Strategic Vision Alignment: 6C. Parks - Develop and maintain sports/recreational facilities for City and public use including an indoor sports facility
Funding Source: Property Insurance Fund 66125200.7020 PKCP-24001.Misc ($569,000 available)
Next Steps: Following Council acceptance, the Parks Superintendent will file a Notice of Completion with the San Joaquin County Recorder's Office, initiating the 30-day period for vendors and subcontractors to file stop notices if needed.
C.3: Portable Restroom Services Amendment
Recommended Action: Adopt resolution authorizing Amendment No. 2 to United Site Services, Inc. of California for portable restroom services
Service Background
Various parks throughout Lodi host youth and adult athletic programs including city-run league play and Boosters of Boys/Girls Sports (BOBS) practices and games. Some parks used for these programs do not have permanent restroom facilities, necessitating portable restroom rentals.
Service Locations
- Lodi Lake
- DeBenedetti Park
- Vinewood Park
Services Provided
- Delivery, set-up, and removal of portable facilities
- Weekly service and maintenance
- ADA-compliant restrooms
- Standard portable restrooms
- Hand wash stations
Need for Amendment
The amendment is necessary due to construction delays of new permanent restroom facilities at Lodi Lake. The City must continue rental services to ensure adequate restroom access for Parks, Recreation and Cultural Services (PRCS) programs during the heavy sports season.
Bidding Process
The City solicited bids from three vendors (United Site Services, Inc., ASAP Services, and Honeybucket). Only one response was received from United Site Services of California, Inc.
Financial Details:
- Amendment Increase: $10,000
- New Total Not-to-Exceed Amount: $136,826
Strategic Vision Alignment: 6C. Parks - Develop and maintain sports/recreational facilities for City and public use
Funding Source: PRCS Fund 200 Operating Expenses (Account 20072202.72499)
C.4: Public Transportation Agency Safety Plan (PTASP) Update
Recommended Action: Adopt resolution approving annual updates to the City of Lodi Public Transportation Agency Safety Plan and authorize the Interim Public Works Director to execute and certify the updated plan
Regulatory Background
The City of Lodi's PTASP is required to maintain eligibility for Federal Transit Administration (FTA) funding and was developed in accordance with FTA's final rule for PTASPs (49 CFR Part 673), as authorized under the Moving Ahead for Progress in the 21st Century (MAP-21) Act.
The rule requires transit operators to implement a Safety Management System (SMS), a top-down, organization-wide approach to managing safety risks that includes:
- Hazard identification and mitigation
- Ongoing performance monitoring
- Safety promotion through staff training and communication
Plan History
| Date | Action | Resolution |
|---|---|---|
| June 17, 2020 | Original Plan adoption | 2020-130 |
| December 20, 2023 | Plan update | 2023-285 |
| November 6, 2024 | Plan update | 2024-183 |
| February 4, 2026 | Current update (proposed) | 2026-TBD |
2026 Update Highlights
New Safety Performance Measures:
- Collision Rate (including Pedestrian and Vehicular collision subcategories)
- Transit Worker Fatality Rate
- Transit Worker Injury Rate
- Assaults on Transit Workers (with rate per 100,000 miles)
- De-escalation Training requirements
Data Period Covered: July 2022 through June 2025
Additional Updates:
- Revised Safety Performance Targets (SPTs)
- Clarifications to safety event definitions per 2025 FTA guidance
- Updated organizational chart reflecting current personnel
- Enhanced procedures for reporting and mitigating assaults on transit workers
Safety Performance Targets (per 100,000 miles)
| Metric | Target |
|---|---|
| Fatalities | Zero |
| Major Events | Zero |
| Transit Worker Assaults | Zero |
Actual Performance (July 2022 - June 2025)
| Metric | Fixed Route (776,297 miles) | Demand Response (162,568 miles) |
|---|---|---|
| Fatalities | 0 | 0 |
| Major Events (Injuries) | 1 | 1 |
| Major Events (Collisions) | 1 | 0 |
| Pedestrian Collisions | 0 | 0 |
| Transit Worker Assaults | 2 (non-physical) | 0 |
| Transit Worker Injuries | 2 | 1 |
| Avg. Miles Between Failures | 19,905 | 81,284 |
Strategic Vision Alignment: 7G. Public Safety - High levels of community involvement by public safety employees
Fiscal Impact: An annually updated PTASP is required by FTA regulations for continued FTA funding of transit services. No direct fiscal impact; maintenance of federal funding eligibility.
Key Partnerships: Plan shared with California Department of Transportation (Caltrans) and San Joaquin Council of Governments (SJCOG) for coordinated regional safety planning.
C.5: Uniform Rental and Cleaning Services Bid Authorization
Recommended Action: Approve specifications and authorize advertisement for bids for rental and cleaning of uniforms for certain field and warehouse employees
Program Background
The City of Lodi has utilized a uniform service for rental and cleaning of uniforms for field and warehouse employees since 1992. This long-standing program ensures professional appearance, safety compliance, and convenience for eligible employees across multiple departments.
Current Contract Status
- Award Year: 2021
- Expiration Date: June 30, 2026
- Status: All contract extensions exhausted; new procurement required
Departments and Facilities Covered
- Facilities Services
- Fleet Services
- Streets Division
- Water/Wastewater Division
- Parks Division
- Surface Water Treatment Plant staff
- White Slough Water Pollution Control Facility staff
- Community Center staff
Coverage provided as specified in applicable Memorandums of Understanding
Services to be Provided
- Uniform rentals for eligible employees
- Regular cleaning and maintenance
- Rags and towels for shop use
- Floor mats for various shops and buildings
Procurement Timeline
| Date | Activity |
|---|---|
| February 4, 2026 | Council authorization to advertise |
| February 2026 | Bid advertisement period |
| March 4, 2026 | Planned bid opening |
| Spring 2026 | Council consideration of award |
| July 1, 2026 | New contract start date |
Strategic Vision Alignment: 3A. Fiscal Health - Promote City's transparency and fiscal fluency
Fiscal Impact: Annual budgeted expense; actual cost to be determined through competitive bidding process
Specifications: On file in the Public Works Department
C.6: Lodi Sister City Committee Allocation ($15,870)
Recommended Action: Adopt resolution approving the allocation of Public Benefit Funds of $15,870 from District 1 Non-Profit Funds to Lodi Sister City Committee
Organization Background
The Lodi Sister City Committee has been building international friendships and cultural exchanges since 1961, with over 69 years of continuous service to the Lodi community. The organization maintains formal sister city relationships with:
- Kofu, Japan - Long-standing cultural and educational exchange partnership
- Lodi, Italy - Celebrating shared heritage and international cooperation
Program Activities
- Student and adult exchange programs
- Cultural education and awareness initiatives
- International goodwill promotion
- Support for visiting delegations
- Community engagement in global citizenship
Non-Profit Fund Policy Context
On June 4, 2025 (Resolution 2025-120), the City Council established a Non-Profit Fund allocation of $100,000 ($20,000 per council district) to support non-profit organizations that benefit the Lodi community. This allocation represents District 1's contribution to international friendship and cultural exchange programming.
Allocation Amount: $15,870
Funding Source: Council Non-Profit Fund District 1 (Account 10005001.72611)
Total District 1 Allocations This Meeting: $20,000 (C.6: $15,870 + C.7: $4,130)
C.7: Lodi Boys and Girls Club Allocation ($4,130)
Recommended Action: Adopt resolution approving the allocation of Public Benefit Funds of $4,130 from District 1 Non-Profit Funds to Lodi Boys and Girls Club
Organization Background
The Lodi Boys and Girls Club has been serving the youth of Lodi since 1963, providing over 60 years of continuous programming and support. The organization is affiliated with Boys & Girls Clubs of America, a national network of over 4,000 clubs serving millions of young people.
Mission and Core Services
The Club's mission centers on four key pillars:
- Safe Environment: Providing a secure place for youth to learn and grow after school and during summer months
- Caring Relationships: Establishing ongoing connections with caring adult professionals who serve as mentors and role models
- Life-Enhancing Programs: Offering structured activities that promote academic success, healthy lifestyles, and good character development
- Hope and Opportunity: Creating pathways to brighter futures through education, skills development, and positive reinforcement
Community Impact
The Lodi Boys and Girls Club serves as a critical resource for working families, providing safe, supervised programming during out-of-school hours. Programs include:
- Academic support and homework assistance
- Physical fitness and sports activities
- Arts and creative expression
- Character and leadership development
- STEM (Science, Technology, Engineering, Math) education
Allocation Amount: $4,130
Funding Source: Council Non-Profit Fund District 1 (Account 10005001.72611)
Policy Basis: Resolution 2025-120 and Adopted Non-Profit Fund Policy
C.8: Lodi Improvement Committee Vacancy
Recommended Action: Post for a vacancy and an expiring term on the Lodi Improvement Committee
This administrative item facilitates citizen participation in city governance through advisory committee membership. The Lodi Improvement Committee provides valuable community input on matters related to city beautification, public improvements, and quality of life enhancements.
Posting the vacancy allows interested Lodi residents to apply for appointment, ensuring the committee maintains its full complement of members and diverse community perspectives.
Application Process: Information about the vacancy and application procedures will be posted on the City's website and made available through the City Clerk's Office.
C.9: Community Benefits Incentive Discount (CBID) Public Hearing
Recommended Action: Set Public Hearing for February 18, 2026 to consider introduction of ordinance amending Lodi Municipal Code Chapter 13.20 (Electrical Service) Sections 13.20.240 and 13.20.250
Program Background
The Community Benefits Incentive Discount (CBID) provides a 30% discount on monthly electric charges for eligible non-profit organizations. The program was originally approved by City Council in 1996 and has not been comprehensively reviewed in the intervening 30 years.
Council Direction (October 15, 2025)
City Council received a presentation from Lodi Electric Utility (LEU) staff and provided direction to:
- Clarify and broaden eligibility criteria
- Update the funding source for the discount
- Modernize program administration
- Revise applicable sections of Lodi Municipal Code
Proposed Revised Eligibility Criteria
| Criterion | Previous Requirement | Proposed Requirement |
|---|---|---|
| 1. CDBG Funding | Must have received CDBG funds within past 2 years | REMOVED - No longer required |
| 2. Non-Profit Status | 501(c)(3) status | Proof of IRS 501(c)(3) status required |
| 3. Service Population | Not explicitly defined | Certification that organization serves low-income populations (≤60% median income) OR disadvantaged communities per CalEnviroScreen |
| 4. Debarment Status | Not required | Certification of non-debarment via SAM.gov verification |
| 5. State Registration | Not explicitly required | Proof of good standing with California Secretary of State |
| 6. Ongoing Review | No regular review | Annual eligibility review required |
Funding Source Change
| Aspect | Current | Proposed |
|---|---|---|
| Funding Source | Electric Utility operations | Public Benefits Fund (Fund 504) designated for low-income assistance programs |
| Budget Impact | ~$30,000 annually (14 accounts) | Same current amount; potential expansion based on new eligibility criteria |
Stakeholder Notification
On October 27, 2025, LEU sent letters to all customers currently receiving the CBID, informing them of proposed changes and providing information on how to submit comments during the public hearing process. As of the agenda preparation date, no customers had contacted LEU with concerns.
Public Hearing Process
| Date | Action |
|---|---|
| February 4, 2026 | Council sets public hearing date |
| February 18, 2026 | Public hearing held; ordinance introduction considered |
| TBD (subsequent meeting) | Second reading and final adoption (if approved) |
Strategic Vision Alignment: 3A. Fiscal Health - Promote City's transparency and fiscal fluency
Current Fiscal Impact: Less than $30,000 annually for 14 customer accounts
Projected Impact: Expansion will depend on number of eligible non-profit entities qualifying under new, broader criteria
Funding Available: LEU maintains sufficient fund balance in Public Benefits Fund 504 to support expanded low-income programs
Regular Calendar Items
The Regular Calendar contains three major items requiring individual discussion, public input, and separate Council action. These items address senior services, significant budget adjustments, and the City's homelessness response infrastructure.
G.1: Lodi Senior Citizens Commission Update
Recommended Action: Receive update from Lodi Senior Citizens Commission (informational presentation)
Presentation Overview
The Lodi Senior Citizens Commission will provide a comprehensive update to strengthen its connection with City Council and the community. The presentation will be delivered by Commission members via PowerPoint and will cover five key areas:
1. Vision and Strategic Alignment
The Commission will explain its vision for serving Lodi's senior population and how this vision aligns with the City Council's Strategic Vision, particularly focusing on community engagement, public well-being, and quality of life for all residents.
2. Goals and Master Plan for Aging Alignment
The presentation will detail Commission goals and their alignment with California's Master Plan for Aging initiatives, demonstrating how local efforts support statewide priorities for senior services and support.
3. Key Accomplishment: Senior Café Program
The Senior Café has emerged as the Commission's flagship program for 2025, providing a safe, welcoming space for seniors to voice concerns, access information, and socialize.
2025 Senior Café Statistics:
| Month | Participants | Topic/Presentation |
|---|---|---|
| February 2025 | 34 | Mayor Cameron Bregman; Elise Vigil (Deputy Director, Aging & Community Services, SJC HSA) |
| May 2025 | 30 | Denise Davis, Alzheimer's Foundation - Alzheimer's Overview and Resources |
| August 2025 | 33 | Advanced Directives by Adventist Health Lodi Memorial Hospital |
| November 2025 | 36 | Palliative Care by Hospice of San Joaquin |
Participant Feedback and Action: The Commission has actively responded to participant questions and recommendations, including:
- Improving City website accessibility with senior resource information
- Enhancing awareness of 211 community resource helpline
- Providing clear contact information for City services (209-333-6702)
- Addressing walkability and infrastructure concerns
- Answering questions about pet regulations, bicycles on sidewalks, and senior social activities
4. Upcoming Events and Presentations
Future Senior Café Topics:
- February 2026: Wills and Trusts
- Future Topics: Organ donation, new Medicare/Medi-Cal changes, falls prevention, navigating new City website, discussions with new City Manager and Mayor
Annual Health Fairs: The Commission will continue partnering with University of the Pacific to present Medicare Health Fairs in October and November 2026 at Hutchins Street Square and LOEL Center.
5. Partnerships and Collaborations
The Commission will provide updates on collaborative relationships with:
- University of the Pacific: Annual health fairs, geriatric care resources
- LOEL Center: Adult day care services, programming space, meal programs
- Alzheimer's Association Del Oro: Caregiver resources and support
- Adventist Health Lodi Memorial Hospital: Educational presentations and health resources
- Various local organizations: Coordinated senior services delivery
Alignment with California Master Plan for Aging
The Commission's current actions specifically address Master Plan initiatives:
- Goal 2: Health Reimagined
- Theme 33: Advanced Directives (addressed in August 2025 Café)
- Theme 39: Alzheimer's Care (addressed in May 2025 Café)
- Goal 5: Affordable Aging
- Theme 78: Food Support (ongoing through LOEL Center programs)
Ongoing Programs Highlighted in Senior Resource Guide
- Environmental Safety and Lifelong Healthy Aging initiatives
- Senior Zones and Walkability Program
- Senior Safety Awareness and Water Fitness programs
- Emergency Preparedness and Response resources
- Geriatric Care Expansion
- Red Alert Program and Cooling Centers
- Police Department Project Lifesaver
Strategic Vision Alignment: 8B. Public Well-Being - Partner with other entities to provide outreach, education and activities to engage diverse cultures and communities
Fiscal Impact: Not applicable (informational update)
Commission Philosophy: "It's About Advocating for Our Seniors - Listening and responding to the voices of the people! Plus continuing and building partnerships with others to benefit our seniors!"
G.2: FY 2025-26 Mid-Year Budget Adjustments
Recommended Action: Receive Report and Adopt a Resolution Approving Fiscal Year 2025-26 Mid-Year Budget adjustments and approve personnel changes
This represents the most significant financial item on the agenda, reflecting substantial operational adjustments mid-fiscal year due primarily to finalized labor agreements and updated operational projections.
Budget Summary Overview
| Category | Adopted Budget (June 2025) |
Revised Budget (Carryovers) |
Mid-Year Recommendation |
Net Change from Revised |
|---|---|---|---|---|
| General Fund Revenue | $89,724,060 | $94,990,231 | $94,801,702 | -$188,530 |
| General Fund Expenses | $89,724,060 | $95,349,328 | $98,299,717 | +$2,950,389 |
| Citywide Revenue | $294,153,030 | $300,239,311 | $306,669,292 | +$6,429,981 |
| Citywide Expenses | $294,153,030 | $368,407,685 | $377,360,605 | +$8,952,920 |
Context: Why the Mid-Year Budget is Unique This Year
The FY 2025-26 budget was adopted on June 4, 2025 with "best-guess assumptions" for salary and benefit costs because most Memorandum of Understanding (MOU) negotiations were still in progress. Now that most safety MOUs are finalized and other negotiations are substantially complete, staff has recalculated these projections to reflect actual negotiated terms.
Key Finding: Of the $2.95 million General Fund expenditure increase, approximately $2.4 million (81%) is directly attributable to MOU salary and benefit changes, representing the true cost of finalized labor agreements.
General Fund Revenue Changes
General Fund Revenue Analysis
General Fund revenues are projected to decrease by $188,530 from the revised budget, driven by several offsetting factors:
Revenue Decreases:
| Category | Amount | Reason |
|---|---|---|
| Sales Tax | -$1,012,130 | HdL consultant projections lower than 2024 Q4 estimates used for budget adoption |
| Intergovernmental (Grant Revenue) | -$492,370 | Assistance to Firefighters Grant (AFG) expired December 31, 2025 |
| Fire Inspection Revenue | -$111,420 | Lower than expected inspection volume |
Revenue Increases:
| Category | Amount | Reason |
|---|---|---|
| Interest Income | +$1,300,000 | Year-to-date actuals significantly exceed projections due to favorable market rates |
| Transfer from GF Capital | +$233,110 | Offset for legal services related to employment matters, personnel, and financial investigations |
General Fund Expenditure Increases by Department
General Fund Expenditure Analysis
Major Expenditure Increases by Department:
| Department | Increase from Revised | Primary Drivers |
|---|---|---|
| Police | $1,571,810 | MOU salary/benefit changes ($1,321,810), Overtime increase ($250,000) |
| Internal Services | $453,065 | MOU changes ($301,565), Bank service fees ($130,000), HR consulting ($21,500) |
| Public Works | $341,020 | MOU changes ($254,270), Unexpected facility repairs ($86,750) |
| Non-Departmental | $293,840 | Legal services - employment/personnel investigations ($233,110), Other costs |
| City Attorney | $122,210 | MOU salary and benefit adjustments |
| Fire | $68,433 | Part-time increase ($28,770), MOU changes, offset by AFG grant loss |
| City Council | $70,000 | Legislative Advocacy appropriation |
Departments with Expenditure Decreases:
| Department | Decrease | Reason |
|---|---|---|
| City Clerk | -$26,730 | Election costs came in lower than budgeted |
Salary and Benefit Impact Breakdown
The table below isolates salary and benefit changes (including MOU impacts, overtime, and part-time increases) totaling $2,409,449:
| Department | Salary/Benefit Increase | Notes |
|---|---|---|
| Police | $1,571,810 | Includes $250,000 overtime increase |
| Internal Services | $301,565 | MOU impacts across HR, IT, Revenue divisions |
| Public Works | $254,270 | MOU changes for field staff |
| City Attorney | $122,210 | MOU salary adjustments |
| Fire | $75,724 | Includes $28,770 part-time increase |
| City Manager | $39,710 | MOU changes |
| City Clerk | $27,130 | Includes reclassification to Assistant City Clerk |
| Community Improvement | $13,860 | MOU changes |
| Library | $3,170 | MOU changes |
| Total | $2,409,449 | 81% of total GF expenditure increase |
Personnel Changes
Positions Added (4 full-time):
| Position | Department | Annual Cost | Mid-Year Cost (Partial Year) |
Rationale |
|---|---|---|---|---|
| Police Officer (Community Liaison Officer) |
Police | $208,500 | $34,750 | Second CLO position for downtown proactive policing; funded by Downtown Ambassador program savings |
| Senior Billing Specialist | Revenue | $114,000 | $19,000 | Leadership and support for Billing team; oversees staff, resolves complex billing issues, provides supervisor backup |
| Management Analyst - Confidential | Risk Management | $88,900 | $0 | Replaces vacant Health & Safety Specialist; better aligns with actual work performed; supports succession planning |
| Senior Plans Examiner | Community Development | $164,500 | $2,500 | Reduce reliance on expensive contract services; improve review quality and timeliness; train future examiners |
Positions Deleted (2):
| Position | Department | Annual Savings | Reason |
|---|---|---|---|
| Customer Service Representative | Revenue | $101,600 | Currently vacant due to turnover; replaced by Senior Billing Specialist |
| Health and Safety Specialist | Risk Management | $88,900 | Long-term vacancy; replaced by Management Analyst - Confidential (no net cost change) |
Reclassifications (2):
| From | To | Department | Annual Cost Increase | Rationale |
|---|---|---|---|---|
| Deputy City Clerk | Assistant City Clerk | City Clerk | $7,920 | Incumbent performing higher-level duties for past year; formalize classification |
| Program Coordinator | Recreation Manager | PRCS | $29,230 | Incumbent performing higher-level duties at Lodi Lake; increased revenue from facility supports cost |
Note: Salary tables for new positions will be developed by Human Resources and returned to Council for approval in coming months.
General Fund Capital Projects - Mid-Year Allocations
Capital Improvement Projects (CIP)
General Fund Capital Background: At the August 6, 2025 Council meeting, approximately $1.6 million was available from Waste Management contract proceeds and General Fund Capital surplus. Council appropriated $290,000 for immediate projects (Resolution 2025-145) and $110,000 for Salas Park vandalism repairs (November 19, 2025), leaving approximately $1.2 million.
Staff recommended reserving funds for unexpected legal services expenses. After transferring $233,110 to the General Fund for these costs, approximately $900,000 remains available for new projects.
Mid-Year General Fund Capital Project Recommendations:
| Project | Funding Source | Amount |
|---|---|---|
| Skatepark - New Planning Phase I & II | 432 - Parks/Rec Capital | $595,000 |
| Kofu Skatepark Repairs | 432 - Parks/Rec Capital | $175,000 |
| Beckman Park - Cricket Lighting & Field Improvements | 432 - Parks/Rec Capital + 431 - GF Capital Outlay |
$900,000 |
| Police Station Boiler Replacement | 431 - GF Capital Outlay | $40,000 |
| Transfer Out - Legal Services | 431 - GF Capital Outlay | $233,110 |
| Total | $1,943,110 |
Remaining Balance: Approximately $100,000 will remain in fund balance for unexpected overages requiring Council approval or for programming in FY 2026-27.
Electric Utility Capital Projects:
| Project | Funding Source | Amount |
|---|---|---|
| EV Charging Infrastructure Master Plan | 501 - EU Capital Reserve Fund | $883,330 |
| Substation Intrusive Maintenance Work | 501 - EU Capital Reserve Fund | $98,730 |
| Total EU Capital | $982,060 |
Enterprise and Special Funds Summary
Beyond the General Fund, the mid-year budget includes adjustments to enterprise funds (Electric Utility, Wastewater, Water) and special revenue funds. Key highlights:
Electric Utility: Overall expenditure increase of $3.7 million primarily due to power generation costs from soft market prices and reduced plant revenue to offset fixed costs, plus capital expenses noted above.
Community Development: Moving $1.5 million for Comprehensive General Plan from operating budget to capital project to allow multi-year rollover.
Streets: Revenue increase of $1.69 million from Measure K and Federal funding, offset by decrease of $304,202 in development impact fees due to slowing development activity.
Employee Benefits: Increases in Chiropractic and Life Insurance costs due to contract increases and correlation with salary growth from MOUs.
Budget and Fiscal Policy Update
Staff recommends adoption of updated Budget and Fiscal Policy with key change: Setting Pension Stabilization funding balance target at 70%.
Context: The City has not invested fund balance in Public Agency Retirement Services (PARS) pension trust for the past three fiscal years (FY 2022-23, 2023-24, 2024-25). Although the City Treasurer has authority to redirect funds, staff recommends formally updating the policy to reflect current practice and assign fund balance to MOU cost increases.
Current Pension Funding Status:
| Plan | Market Value Assets | Actuarial Liability | Funded Ratio |
|---|---|---|---|
| Safety | $163,202,177 | $268,772,115 | 60.7% |
| Miscellaneous | $179,966,863 | $255,976,314 | 70.3% |
| All Plans (CalPERS) | $343,169,040 | $524,748,429 | 65.4% |
| PARS Balance | $31,112,416 | N/A | 5.9% |
| Total Pension Funding | $374,281,456 | $524,748,429 | 71.3% |
Finance Committee Review: The Finance Committee reviewed the proposed policy changes on January 28, 2026 and recommends approval.
Strategic Vision Alignment: 3A. Fiscal Health - Promote City's transparency and fiscal fluency
Key Documents:
- Attachment 1: Mid-Year Budget Adjustments Exhibit A (detailed line-item changes)
- Attachment 2: Mid-Year CIP Requests
- Attachment 3: Redlined Budget and Fiscal Policy showing proposed changes
- Attachment 4: Resolution
Funding Available: Mid-year adjustments utilize existing fund balances, dedicated capital reserves, and adjusted revenue projections. General Fund changes represent a net decrease in revenue of $188,530 and expense increase of $2,950,398.
G.3: Lodi Access Center and Emergency Shelter Operator Selection
Recommended Action: Adopt a Resolution Awarding Operation of the Lodi Access Center and Emergency Shelter to Outreach Ministries International, Inc., based on ranking and recommendation provided by the Evaluation Committee, and authorize City Staff to negotiate an agreement and return to City Council for final contract approval
This represents one of the most significant policy decisions regarding the City's homelessness response infrastructure, transitioning from temporary to permanent operations of the Access Center.
RFP Process Overview
| Date | Activity |
|---|---|
| October 1, 2025 | Draft RFP approved by Council; release authorized |
| October 2, 2025 | RFP released to public |
| October 22, 2025 | Virtual pre-proposal meeting held |
| November 3, 2025 | Proposal submission deadline (5 proposals received) |
| November 2025 | Proposal review (1 deemed non-responsive, 4 evaluated) |
| December 2, 2025 | Evaluation Committee scoring and review |
| December 10, 2025 | Top 3 proposers interviewed |
| February 4, 2026 | Council consideration of award |
Proposer Organizations (4 evaluated)
- First Step Communities (Sacramento) - Operates four shelters with 400 guests nightly in Sacramento
- Five Keys Schools and Programs (San Francisco) - Experience operating similar facilities
- Outreach Ministries International, Inc. (Lodi) - Current operator of temporary Access Center since 2025
- The Salvation Army (National organization with local presence)
Proposer Cost Comparison - Year 1 Operating Budget
Financial Comparison
| Organization | Year 1 Cost | Cost per Bed per Night | Full-Time Staff | Part-Time Staff |
|---|---|---|---|---|
| The Salvation Army | $1,680,783 | $76.75 | 14 | 11 |
| Outreach Ministries International | $1,823,885 | $83.28 | 20 | 20 |
| First Step Communities | $2,198,070 | $100.37 | 21 | 10 |
| Five Keys | $2,439,948 | $111.41 | 23 | 12 |
Evaluation Scoring Results
Evaluation Results
Proposal Scoring (700 points maximum):
| Organization | Score | Percentage | Rank |
|---|---|---|---|
| Outreach Ministries International | 609 | 87% | 1 |
| Five Keys | 587 | 84% | 2 |
| The Salvation Army | 559 | 80% | 3 |
| First Step Communities | 550 | 79% | 4 |
Interview Scoring (240 points maximum) - Top 3 only:
| Organization | Score | Rank |
|---|---|---|
| Five Keys | 186 | 1 |
| Outreach Ministries International | 184 | 2 |
| The Salvation Army | 154 | 3 |
Combined Final Rankings (Proposal + Interview):
| Organization | Total Combined Score | Final Rank |
|---|---|---|
| Outreach Ministries International | 793 | 1 (Recommended) |
| Five Keys | 773 | 2 |
| The Salvation Army | 713 | 3 |
Evaluation Committee Assessment
Outreach Ministries International (OMI) - Recommended Operator
Key Strengths Identified:
- Operational Continuity: Current operator of temporary Access Center since 2025, providing seamless transition
- Established Local Relationships: Deep connections with Lodi-based service providers, community organizations, and clients
- Familiarity with Operations: Understanding of Lodi-specific needs, challenges, and community dynamics
- Demonstrated Track Record: Measurable success during temporary operations phase
- Community Integration: Already integrated into San Joaquin County service network
Areas for Contract Negotiation:
- Succession planning and leadership depth given smaller organizational size
- Organizational capacity enhancement strategies
Note: Evaluation Committee determined these concerns are appropriate to address through contract negotiations and could be relevant with any selected organization.
Five Keys Schools and Programs
Strengths:
- Highest interview score among all proposers
- Comprehensive and well-developed proposal
- Extensive experience operating similar facilities in other communities
- Strong overall program design
Concerns:
- Need to establish local relationships with Lodi-based service providers and clients
- Anticipated ramp-up period to initiate operations in new community
- Learning curve for Lodi-specific dynamics
The Salvation Army
Concerns Identified:
- Lower proposed staffing levels compared to other proposers
- Fewer on-site supervisors and managers
- Potential challenges meeting 24/7 operational and supervisory requirements
First Step Communities
Concerns Identified:
- Highest cost proposal ($2.2 million annually)
- Similar staffing capacity concerns as noted for other proposers
Outreach Ministries International: Track Record
Temporary Access Center Performance (Past 12 Months):
| Metric | Results |
|---|---|
| Clients Transitioned to Housing | 115 (97 remain successfully housed) |
| Clients Entered Rehabilitation | 59 (39 remain in or completed program) |
| Clients Gained Employment | 51 (33 remain employed) |
| Total Successful Transitions | 174 individuals (164 unique; 10 transitioned twice) |
| Estimated City Savings | ~$6 million (reduced emergency services, law enforcement calls, encampment cleanups, hospital strain) |
Letters of Support Included in Agenda Packet:
- United Way of San Joaquin County (Kristen Birtwhistle, President/CEO) - Recognizes measurable success and business acumen; notes over $5M savings to City
- St. Mary's Community Services (Krista M. Fiser, CEO) - Highlights effective continuum of care and regional collaboration between Stockton and Lodi
- Lodi Community Foundation (Louis Ponick, CEO) - Supports importance of maintaining stable, experienced operator for continued success
OMI Operational Model
Outreach Ministries International's program operates through a three-phase approach:
Phase 1 - Flow In (Engagement):
- Trauma-informed outreach
- Trust-building with unsheltered individuals
- Low-barrier referral process
- Coordinated entry system participation
Phase 2 - Flow Within (Stabilization):
- 24/7 emergency shelter (60 beds, surge capacity available)
- Comprehensive case management
- Three meals daily
- Transportation assistance
- Benefits enrollment support
- Healthcare connections
Phase 3 - Flow Out (Permanent Solutions):
- Recovery program connections
- Housing navigation and placement
- Workforce development
- Ongoing support services
Facility Specifications
- Bed Capacity: 60-bed low-barrier emergency shelter
- Operational Model: 24/7 staffing and supervision
- Approach: Housing First philosophy (no preconditions for entry)
- Accommodations: Pets and possessions welcome
- Future Expansion: Potential surge capacity up to 208 beds as community needs evolve
Key Partnerships
OMI has established or will establish partnerships with:
- San Joaquin County Behavioral Health Services (onsite services)
- San Joaquin Health (medical services)
- St. Mary's Community Services (continuum of care coordination)
- United Way of San Joaquin County (resource coordination)
- Lodi Community Foundation (community support)
- Local faith communities and civic organizations
Funding and Fiscal Impact
Current Funding Sources:
- State and Local Fiscal Recovery Funds (SLFRF/ARPA)
- Homeless Housing, Assistance, and Prevention (HHAP) Grant
- Permanent Local Housing Allocation (PLHA) Grant
Immediate Fiscal Impact: No immediate fiscal impact with this action. Council is authorizing negotiation of agreement, not approving expenditure.
Future Fiscal Impact: Fiscal impacts will be presented to City Council as part of proposed agreement at future meeting. Staff anticipates sufficient grant funding for Year 1 of permanent operations based on:
- Current available resources
- In-progress grant applications
- Potential future grant opportunities
Contingency: Should sufficient grant funding not be available to enter into first year agreement, staff will evaluate options and bring alternatives to City Council for consideration.
Next Steps
If City Council adopts the resolution:
- Contract Negotiations: City staff will negotiate detailed agreement terms with
Outreach Ministries International, focusing on:
- Operational details and performance measures
- Reporting requirements and accountability metrics
- Staffing plans and organizational capacity provisions
- Succession planning and leadership depth
- Service levels and budget finalization
- Return to Council: Staff will bring negotiated agreement to City Council at future meeting for final review and approval prior to execution
- Transition Planning: If agreement is approved, coordinated transition from temporary to permanent operations
Strategic Vision Alignment: 4C. Housing - Continued progress towards Regional Housing Needs Assessment goals
Evaluation Committee Recommendation: Based on combined proposal and interview scoring, Outreach Ministries International ranked first overall and is recommended by the Evaluation Committee
Key Decision Factor: Balance of cost-effectiveness, demonstrated local success, established relationships, and operational continuity positions OMI as the recommended operator to ensure seamless transition to permanent operations
References and Additional Resources
Official City Resources
- City of Lodi Website: www.lodi.gov
- Meeting Webcasts: Live and archived webcasts available at www.lodi.gov (click "meeting webcasts" link)
- Facebook Live: www.facebook.com/CityofLodi
- SJTV Channel 26: Live telecast of Council meetings
Contact Information
- City Clerk's Office: 221 W. Pine Street, Lodi, CA 95240 | Phone: (209) 333-6702
- Council Comments Email: councilcomments@lodi.gov
- Mailing Address: P.O. Box 3006, Lodi, CA 95241
Document Access
All staff reports and written documentation relating to agenda items are on file in the Office of the City Clerk and available for public inspection. Agendas and staff reports are posted on the City's website at www.lodi.gov.
Accessibility and Language Services
The agenda is available in appropriate alternative formats for persons with disabilities as required by the Americans with Disabilities Act. Requests for disability-related modifications or accommodations should be made at least 72 hours prior to the meeting date.
English: Contact Olivia Nashed at (209) 333-6702
Español: Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 72
horas de anticipación. Llame a Olivia Nashed (209) 333-6702
Document Preparation
This comprehensive overview was prepared from the official City of Lodi City Council Agenda Packet for the February 4, 2026 Regular Meeting. All information, financial figures, and recommendations are sourced directly from official city documents prepared by city staff and reviewed by legal counsel.
Agenda Posted: At least 72 hours in advance of the meeting at a public place freely accessible 24 hours a day, in compliance with Government Code Section 54954.2(a).