Lodi Finance Committee - June 10, 2026
Lodi Finance Committee — Special Meeting
Wednesday, June 10, 2026 · 1:30 p.m.
Carnegie Forum, Large Conference Room, 305 West Pine Street, Lodi, CA 95240
LodiEye Agenda Summary · Chair Mikey Hothi, Vice Chair Ramón Yepez, Member Gary Woehl
Summary
The Lodi Finance Committee meets in special session on June 10, 2026 to take up a single substantive item: a comprehensive redline overhaul of the City's Purchasing Policy, last revised May 20, 2022. The new June 4, 2026 draft raises the City Manager's signature authority to $80,000 plus an annual CPI escalator, creates a new 5% local vendor preference (capped at $50,000), lifts public-works and vehicle thresholds, strengthens documentation rules, and adds a new federal-grant procurement section to comply with 2 CFR Part 200 (Uniform Guidance). The Committee will also approve the April 15, 2026 minutes.
Agenda at a Glance
- A. Call to Order / Roll Call
- B.1 Approve Minutes — April 15, 2026 (Special Meeting)
- B.2 Discussion and Review of Purchasing Policy Redline Revisions (core item)
- C. Adjournment
Public Comment
Public comment may be submitted in person, by email to jbandy@lodi.gov, by mail (City Manager's Office, P.O. Box 3006, Lodi, CA 95241), or hand-delivered to 221 W. Pine Street. Email, mail, and hand-delivered comments must be received no later than two hours before the meeting, and will be entered into the official record but not read aloud. The agenda was signed by Treasurer Jamie Bandy and posted at least 24 hours in advance per Government Code §54954.2(a).
Core Item: Purchasing Policy Redline Revisions
Staff (prepared by Administrative Services Director Jamie Bandy) identified the need to update the policy to improve clarity, strengthen internal controls, incorporate municipal code requirements, add a local purchasing preference, and ensure compliance with federal procurement standards under 2 CFR Part 200. The item maps to Strategic Vision goal 3A. Fiscal Health: Promote City's transparency & fiscal fluency, with no fiscal impact.
The Nine Proposed Revisions
| # | Revision | Detail |
|---|---|---|
| 1 | Local Vendor Preference (p.4) | New 5% preference, capped at $50,000, for qualifying local vendors when permitted by law |
| 2 | Purchasing Officer Role (p.2) | Formally recognizes the City Manager-appointed Purchasing Officer, aligning policy with Municipal Code |
| 3 | Public Works Thresholds (p.3-4) | ≤$75,000: PO, no bids; $75,000-$220,000: informal bidding; >$220,000: formal bidding |
| 4 | Vehicle Purchase Threshold (p.3) | Purchases >$100,000 require Council approval (raised from $50,000) |
| 5 | Strengthened Documentation (p.5) | Must identify vendors who declined or did not respond to solicitations |
| 6 | Blanket/Open Purchase Orders (p.6) | Adds governing language for recurring as-needed goods and services |
| 7 | Informal/Unsealed Quotes (p.8) | Details procedures for purchases under $80,000 |
| 8 | Renewals Over $80,000 (p.14 & 18) | Strengthens language requiring such renewals to go to Council |
| 9 | City Manager Authority (p.1) | Sets authority at $80,000 plus annual CPI increases, per the April decision |
Threshold Changes: Old vs. New
| Item | Old | New (Draft) |
|---|---|---|
| City Manager contract authority | $60,000 | $80,000 + CPI |
| Informal vs. formal procedure cutoff | $60,000 | $80,000 |
| Vehicle purchases requiring Council | $50,000 | $100,000 |
| Public Works: PO / no bids | ≤$60,000 | ≤$75,000 |
| Public Works: informal bidding ceiling | $200,000 | $220,000 |
| Change orders / renewals to Council | $60,000 | $80,000 |
Local Vendor Preference Details
The most significant new addition. Staff surveyed comparable agencies — the Cities of Elk Grove, Chico, and Concord, and the Counties of San Joaquin and Sonoma — and found a 5% preference is the most common approach. To qualify, a "Local Vendor" must:
- Maintain a physical business location within Lodi city limits;
- Hold a valid City business license;
- Comply with all applicable local, state, and federal laws; and
- Have operated continuously in the City for at least one year before the solicitation date.
The preference is for evaluation purposes only — it does not raise the contract amount paid and does not require awarding to a local vendor over a better-value bidder. It does not apply when prohibited by state/federal law or grant conditions, when there is no responsive local vendor, or for cooperative, state, or piggyback contracts.
CPI Inflation-Adjustment Mechanism
The City Manager's authority is set at $80,000 at policy commencement, and all purchasing thresholds adjust each July 1 by the percentage change in the CPI-U for the San Francisco-Oakland-Hayward area (U.S. Bureau of Labor Statistics). Adjustments round to the nearest $100, are calculated and published annually by the Purchasing Officer, and a CPI decrease can never reduce an existing threshold.
New Section IV: Federal Grant Purchases (Uniform Guidance)
An entirely new section was added to comply with 2 CFR 200.318-200.326 for procurements using federal grant funds. Highlights:
- Conflict-of-interest rules barring employees/agents (and their families or partners) from participating where they have a financial interest, plus a prohibition on accepting gratuities.
- A prohibition on local geographic preferences for federally funded procurements (except A/E services), which overrides the new local vendor preference for grant work.
- Required procurement methods: sealed bids (preferred for construction), competitive proposals, and noncompetitive/sole-source only under specific conditions.
- Affirmative steps to use minority-owned and women's business enterprises.
- A cost or price analysis for every action above the $150,000 Simplified Acquisition Threshold, and a ban on "cost plus a percentage of cost" contracting.
- Bonding (5% bid guarantee; 100% performance and payment bonds) and required clauses: Equal Employment Opportunity, Davis-Bacon, Copeland Anti-Kickback, Contract Work Hours, Clean Air Act, Debarment/Suspension, and the Byrd Anti-Lobbying Amendment.
Background: April 15, 2026 Meeting (B.1 Minutes)
The June meeting continues a discussion begun in April. That special meeting was called to order at 1:33 p.m. with Vice Chair Yepez and Member Woehl present and Chair Hothi absent.
- City Manager signature authority — The Committee voted to raise authority from $60,000 to $80,000 plus CPI, rounded to the nearest $100; Woehl had recommended an $80K-$90K range.
- Accepting donations — Vice Chair Yepez preferred that all monetary donations continue to require Council approval; in-kind donations are handled separately since no City funds are appropriated.
- FCM Audit update — Accounting Manager Lor reported the audit reports would go to Council on May 6 or May 20, with findings consistent with the prior year.
- The meeting adjourned at 2:26 p.m.
References
- Source document: Finance Committee Special Meeting Agenda and Materials (City of Lodi, June 10, 2026)
- City of Lodi — Official Website
- Treasurer / Administrative Services Director: Jamie Bandy — jbandy@lodi.gov
- Meeting location: Carnegie Forum, 305 West Pine Street, Lodi, CA 95240