Lodi Finance Committee - April 15, 2026
Lodi Finance Committee – Special Meeting Agenda
Wednesday, April 15, 2026 – 1:30 p.m.
Carnegie Forum – Large Conference Room, 305 West Pine Street, Lodi, CA 95240
Chair Mikey Hothi • Vice Chair Ramón Yepez • Member Gary Woehl
Meeting Overview
This special meeting of the Lodi Finance Committee features four agenda items focused on strengthening the City's fiscal governance. The centerpiece is a comprehensive overhaul of the Purchasing Policy — last updated in May 2022 — with updated procurement thresholds, new federal compliance provisions under 2 CFR Part 200, and stronger documentation requirements. Staff also proposes raising the City Manager's purchasing authority from $60,000 to $100,000 to align with comparable Northern California cities. A new framework for accepting donations without individual Council approval rounds out the agenda, following up on discussion from the March 11 meeting.
Public Comment
Public comment may be submitted in the following ways:
- In-person at the meeting
- Email: cjaromay@lodi.gov – received no later than two hours prior to the meeting
- Mail: City Manager's Office, P.O. Box 3006, Lodi, CA 95241
- Hand delivered: City Manager's Office, 221 W. Pine Street, Lodi, CA 95240 – received no later than two hours prior
Comments received via email, mail, or hand delivery will be provided to the Committee and included in the official minutes but will not be read aloud.
B.1 – Approve Minutes: March 11, 2026 Special Meeting
Prepared by: Monica Calderon, Administrative Assistant – Confidential
Recommended
Action: Approve minutes as prepared.
What Happened at the March 11 Meeting
The March 11, 2026 Special Meeting was called to order at 10:02 a.m. with all three members present. Staff in attendance included Interim City Manager Busch, Treasurer Jaromay, Budget Manager Baker-Bechthold, Accounting Manager Lor, Budget Analyst Howell, and Administrative Assistant Calderon.
Key Actions & Discussions
- February 4, 2026 Minutes: Approved with amendment correcting "Vice Chair Nakanishi" to "Chair Hothi." Motion by Chair Hothi, seconded by Member Woehl. Passed unanimously (3-0).
- FY 2027 Budget Cycle: Budget Manager Baker-Bechthold provided an overview noting department submissions were due March 19, 2026. Interim City Manager Busch indicated an additional meeting would be scheduled to align budget discussions with the Strategic Vision. The budget adoption date was set for June 3, 2026. Busch cautioned that salary savings from vacant positions should not be relied upon as a consistent funding source.
- Donation Accounts (Non-Agenda): Treasurer Jaromay explained the donation process. Vice Chair Yepez requested more information for a future meeting — which led directly to Agenda Item B.4 on this April 15 agenda.
- Treasurer's Report (Non-Agenda): Member Woehl requested a follow-up meeting with Baker-Bechthold and Accounting Manager Lor to review the Treasurer's Report.
- Fiscal Year Deadline: Donation funds must be spent by June 30 (end of fiscal year) or the revenue becomes part of the department's fund balance, requiring reprogramming in the next fiscal year.
The meeting adjourned at 10:24 a.m.
B.2 – Purchasing Policy Redline Revisions
Prepared by: Jennelle Baker, Budget Manager
Recommended Action: Finance
Committee discussion and review of Purchasing Policy redline revisions.
Strategic
Vision: 3A – Fiscal Health: Promote City's transparency & fiscal fluency.
Background
The City's Purchasing Policy was last revised on May 20, 2022. Staff has identified the need to update the policy to improve clarity, strengthen internal controls, and incorporate municipal code requirements. The proposed revisions include administrative updates, clarification of existing procedures, and the addition of a new section ensuring compliance with federal procurement standards under 2 CFR Part 200 (Uniform Guidance).
Summary of Proposed Changes
The staff report identifies seven major revision areas across the full redlined policy document:
1. Purchasing Officer Role (Page 1)
The updated policy formally incorporates language consistent with the Lodi Municipal Code recognizing the position of Purchasing Officer. While the position already exists in code, adding it to the policy provides clarity on roles and responsibilities. Duties may be combined with other administrative functions.
2. Public Works Project Thresholds (Page 2)
| Procurement Method | Current Threshold | Proposed Threshold |
|---|---|---|
| Purchase Order / No bids required | $60,000 or less | $75,000 or less |
| Informal bidding process | $60,000 – $200,000 | $75,000 – $220,000 |
| Formal bidding process | Over $200,000 | Over $220,000 |
These thresholds align with the Public Contract Code Section 22032 (Uniform Public Construction Cost Accounting Act) and reflect updated statutory limits.
3. Vehicle Purchase Threshold (Page 3)
| Requirement | Current | Proposed |
|---|---|---|
| Council approval required for vehicle purchases exceeding | $50,000 | $100,000 |
Vehicle planned purchases will continue to be included in the annual budget planning process regardless of threshold.
4. Strengthened Documentation Requirements (Page 4)
If a department cannot obtain at least three written bids or quotations, they must now document what steps were taken, identify vendors who declined or did not respond, and explain why it is not practical to receive three quotes.
5. Blanket/Open Purchase Orders (Page 5)
New language formalizes the use of blanket purchase orders for recurring expenses where specific items and quantities are determined on an as-needed basis. Examples include office supplies, materials, parts, small equipment, and specialized equipment repair services. Blanket POs follow the same threshold limits and renewal provisions as other procurement methods.
6. Informal/Unsealed Quotes Under $60,000 (Pages 7–8)
Detailed procedures have been added for the solicitation, documentation, and evaluation of informal quotes. Departments must make every reasonable attempt to obtain at least three quotes for purchases between $10,000 and $60,000. Documentation must include vendor names, dates, understanding of scope, references, and estimated price. Award goes to the lowest responsible bidder, though the City reserves the right to accept the quote providing the best overall value.
7. Renewals Over $60,000 Go to Council (Pages 13 & 17)
Strengthened language ensures that contract renewals exceeding $60,000 in total — including ongoing software maintenance agreements and multi-year professional services — must receive City Council approval.
New Federal Procurement Section (Section IV)
An entirely new section addresses compliance with 2 CFR Part 200 (Uniform Guidance) for purchases involving federal grant funds. This is significant as the 2024–2026 Uniform Guidance revisions represent the most substantial updates to federal grant regulations since 2014. Key federal requirements incorporated include:
- Written conflict-of-interest standards and prohibition against financial interests in contracts
- Detailed procurement methods: sealed bids, competitive proposals, and noncompetitive proposals
- Requirements for minority, women's, and veteran-owned business inclusion
- Bonding requirements for construction contracts exceeding the $150,000 Simplified Acquisition Threshold
- Mandatory contract provisions per Appendix II: Davis-Bacon Act, Clean Air Act, debarment verification via SAM.gov, anti-lobbying certification, and more
Additional Policy Clarifications
- City Manager contract authority: $60,000 or less; Department Directors: $30,000 or less (per LMC 2.12.060)
- Three-way match: Requisition/PO must match receipt of goods, which must match vendor invoice — deviations require a valid change order in Munis
- CAL-Card (procurement card): Used for budgeted low-value goods up to $10,000, with temporary limit increases requiring Department Director or City Manager authorization
- Change orders: Allowable up to $60,000 in aggregate; exceeding $60,000 must go to Council
- Emergency purchases: Defined as unforeseen circumstances; if over $30,000, Department Director must prepare a Council agenda report
B.3 – City Manager Purchasing Authority
Prepared by: Jennelle Baker, Budget Manager
Recommended Action: Finance
Committee discussion and review.
Strategic Vision: 3A – Fiscal Health: Promote City's
transparency & fiscal fluency.
Proposal
Staff recommends increasing the City Manager's purchasing authority from $60,000 to $100,000. The current $60,000 threshold was last set in 2022, and staff argues it causes procurement delays, increases administrative burden on Council agendas, and reduces operational flexibility for routine purchases that have already been approved through the budget process.
Comparable City Survey
A survey of Northern California cities of comparable size supports the proposed threshold:
| City | Purchasing Authority |
|---|---|
| Elk Grove | $100,000 |
| Tracy | $100,000 |
| Sacramento | $100,000 |
| Rancho Cordova | $100,000 |
| Galt | $70,000 |
| Folsom | $72,209 + Annual CPI Adjustment |
| Lodi (Current) | $60,000 |
| Lodi (Proposed) | $100,000 |
Key Safeguards
The proposed change affects approval authority only, not total spending — which remains governed by the Council-approved annual budget. Recommended safeguards include:
- Formal competitive bidding required above statutory thresholds
- Quarterly reports of all purchases between $30,000 and $100,000 provided to City Council
- Separation of duties maintained in procurement and payment processing
- All purchases still subject to budgetary appropriation controls in the Munis financial system
Impact on Other Thresholds
If the City Manager threshold increases to $100,000, corresponding updates to the Purchasing Policy would ensure formal sealed bids and Council approval remain required for purchases above $100,000. The Department Director threshold ($30,000) and CAL-Card default limit ($10,000) would remain unchanged.
B.4 – Accepting Donations
Prepared by: Jennelle Baker, Budget Manager
Recommended Action: Finance
Committee discussion and direction.
Strategic Vision: 3A – Fiscal Health: Promote City's
transparency & fiscal fluency.
Background
This item follows up directly on Vice Chair Yepez's request at the March 11, 2026 meeting for more information about the City's donation acceptance process. Currently, every donation — even those fully offset by corresponding revenue — must go through a Council consent calendar for formal acceptance and budget appropriation.
Current Process
Under the City's Budget and Fiscal Policy Section 3.F.a, Council approval is required for any increase in total fund appropriations, including net-zero adjustments where donation revenue fully offsets the related expenditure. This means even small, routine donations require a separate consent calendar item, creating administrative overhead.
Proposed Amendment
Staff proposes a potential amendment to the Budget and Fiscal Policy that would authorize the City Manager to accept and appropriate donations administratively, without requiring separate Council approval each time. Benefits include:
- Eliminating repetitive consent calendar items for routine donations
- Maintaining fiscal integrity since appropriations are fully offset by donation revenue
- No impact on existing budgeted resources
- Faster processing so departments can use donations before the June 30 fiscal year-end deadline
Fiscal Year Deadline: As noted in the March 11 minutes, donation funds not spent by June 30 become part of the respective department's fund balance, and the expense for the donation purchase must be reprogrammed in the next fiscal year. Streamlining acceptance helps departments utilize donations within the current budget cycle.
Staff is seeking Committee direction on whether to bring a formal policy amendment forward as part of the FY 2026/27 budget process, with budget adoption targeted for June 3, 2026.
Context & What to Watch
This meeting reflects a City of Lodi in active governance reform. The FY 2025–2026 balanced budget of $291 million was adopted in June 2025, and the FY 2027 budget cycle is well underway with department submissions already collected. The purchasing policy overhaul, authority realignment, and donation streamlining collectively aim to modernize procurement, reduce administrative friction, and strengthen oversight — all while aligning with the City's Strategic Vision for fiscal health and transparency.
Key Staff: Interim City Manager Busch • Treasurer Christina Jaromay • Budget Manager Jennelle Baker-Bechthold • Accounting Manager Lor • Budget Analyst Howell • Administrative Assistant Monica Calderon
References
- City of Lodi – Agenda Center
- Finance Committee Agenda – March 11, 2026 Special Meeting
- City of Lodi Adopts FY 2025–2026 Balanced Budget
- 2 CFR Part 200 – Uniform Administrative Requirements (eCFR)
- Public Contract Code Section 22032 – Uniform Public Construction Cost Accounting Act
- Contact: cjaromay@lodi.gov – Christina Jaromay, Treasurer