Lodi Finance Committee - September 16, 2026
Lodi Finance Committee — Special Meeting
Wednesday, September 16, 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
Summary
The September 16, 2026 Lodi Finance Committee Special Meeting is a compliance-and-treasury sitting with three Regular Calendar items: approve the June 10, 2026 minutes, receive the Quarterly Investment Report for the quarter ending June 30, 2026, and review a Purchasing Policy redline that adds Federal Transit Administration (FTA) procurement language requested by a recent FTA audit of the Public Works Transit Division.
Total cash and investments at June 30, 2026 stand at $242.0 million — essentially flat year over year, but reflecting a significant rebalancing over the last four quarters into Medium Term Corporate Notes (24.57% of the portfolio, near the 30% policy cap) and out of Municipal Securities and U.S. Treasuries. The Purchasing Policy revisions would be the third Council adoption of the policy in six years and are driven directly by FTA audit findings on the Transit Division.
Meeting Details
Date & Time: Wednesday, September 16, 2026 at 1:30 p.m.
Location: Carnegie Forum, Large Conference Room, 305 West Pine Street, Lodi, CA 95240
Committee Members: Chair Mikey Hothi, Vice Chair Ramón Yepez, Member Gary Woehl
Treasurer: Jamie Bandy, Administrative Services Director
Public Comment: In-person; by email to jbandy@lodi.gov received no later than two hours prior to the meeting; by mail to City Manager's Office, P.O. Box 3006, Lodi, CA 95241; or hand-delivered to City Manager's Office, 221 W. Pine Street, Lodi, CA 95240 (received no later than two hours prior to the meeting). Emailed, mailed, and hand-delivered comments are included in the official record but are not read aloud.
Agenda
A. Call to Order / Roll Call
B. Regular Calendar
B.1 Approve Minutes — June 10, 2026 (Special Meeting)
The draft minutes record a short meeting called to order at 1:35 p.m. and adjourned at 1:46 p.m. Chair Hothi and Member Woehl were present; Vice Chair Yepez was absent. Also present were Treasurer Jamie Bandy, Budget Manager Jennelle Baker-Bechthold, Accounting Manager Chia Lor, PRCS Director Christina Jaromay, Budget Analysts Howell and Kaur, and Administrative Assistant Monica Calderon.
Two 2-0 votes were taken:
- Approval of the April 15, 2026 minutes.
- Approval of Purchasing Policy changes with three Committee recommendations — raise the City Manager's vehicle-purchase signing authority to $100,000, designate Jamie Bandy as Purchasing Officer, and leave local vendor preference provisions unchanged.
B.2 Quarterly Investment Report — Quarter Ending June 30, 2026
Prepared by Accounting Manager Chia Lor and certified via Adobe Sign by Treasurer Jamie Bandy (August 25, 2026) and Budget Manager Jennelle Baker-Bechthold (August 28, 2026). The report certifies conformity with the Investment Policy adopted June 20, 2024 and states that the portfolio provides sufficient cash liquidity for the next six months of estimated expenditures.
- Total investments (recorded value): $191,007,754
- Cash in bank: $51,037,714
- Total cash and investments: $242,045,468
B.3 Purchasing Policy — Federal Funding Language Updates
Report prepared by Budget Manager Jennelle Baker-Bechthold. Following the July 1, 2026 comprehensive Purchasing Policy revision, the Public Works Transit Division underwent an extensive FTA audit. The FTA asked the City to more clearly incorporate federal procurement requirements into the written policy. The recommended action is Committee discussion and direction, with Council adoption anticipated in October 2026.
C. Adjournment
Pursuant to Government Code §54954.2(a), this agenda was posted at least 24 hours in advance of the meeting at a public place freely accessible to the public 24 hours a day.
B.1 — June 10, 2026 Minutes: Context from Prior Meetings
The June 10 vote closed a policy loop that opened at the April 15, 2026 meeting. On April 15 the Committee (Yepez and Woehl present; Hothi absent) reviewed the Purchasing Policy and Municipal Code, discussed oversight costs and potential external procurement audits, and voted 2-0 to raise the City Manager's general signature authority from $60,000 to $80,000 plus annual CPI rounded to the nearest $100. Vice Chair Yepez asked that all monetary donations continue to require Council approval, with larger monetary donations potentially placed in trust; physical donations remain outside standard budgetary controls. Accounting Manager Lor noted the FCM audit findings tracked the prior year and would be presented to Council on May 6 or May 20.
The June 10 packet then delivered a nine-point comprehensive Purchasing Policy rewrite (last revised May 20, 2022): local vendor preference modeled on Elk Grove, Chico, Concord, San Joaquin County, and Sonoma County (5%, capped at $50,000); formal recognition of the Purchasing Officer role; updated Public Works thresholds ($75,000 and $220,000); the $100,000 vehicle Council-approval trigger; blanket-purchase-order language; strengthened documentation for vendors that declined or did not respond; renewals over $80,000 to Council; and the $80,000-plus-CPI City Manager authority. Council adopted that rewrite effective July 1, 2026 — the baseline the current September 16 draft is amending.
Reaching further back, the Committee's early-2026 arc was pension-focused: on January 27 the Committee approved amendments to the Budget & Fiscal Policies that lowered the pension funded-ratio target from 80% to 70% and set a framework for strategic distributions from the Section 115 Pension Trust, against CalPERS unfunded liability above $181 million; on February 4 the Committee received a Public Agency Retirement Services presentation projecting a combined pension funded ratio near 80% by 2031-32 and introduced the FY 2023-24 ACFR process; and on March 11 the Committee discussed the FY 2027 budget cycle. None of that pension or budget material returns on the September 16 agenda.
Staffing signal: The list of "Also Present" quietly documents the recent turnover in senior finance leadership. Prior 2025 investment reports were signed by James Lindsay as Treasurer/Interim City Manager. The December 31, 2025 report was signed by Christina Jaromay as Treasurer/Interim Internal Services Director. By June 10, 2026 Jamie Bandy signs as Treasurer/Administrative Services Director and Christina Jaromay appears as Parks, Recreation and Cultural Services Director — a lateral move that coincides with Bandy's designation as Purchasing Officer.
B.2 — Quarterly Investment Report Analysis
Portfolio Composition at June 30, 2026
| Investment Type | Policy Max | Current % | Recorded Value |
|---|---|---|---|
| U.S. Treasury Obligations | 100% | 0.26% | $494,876 |
| U.S. Government Agency Securities | 100% | 11.42% | $21,819,212 |
| Certificates of Deposit (local) | 100% | 0.44% | $834,448 |
| Negotiable Certificates of Deposit | 30% | 1.82% | $3,481,393 |
| California LAIF | 100% | 27.28% | $52,103,336 |
| Money Market Mutual Funds | 20% | 13.48% | $25,739,545 |
| Medium Term Corporate Notes | 30% | 24.57% | $46,930,420 |
| JPA Pool (CalTRUST) | 30% | 6.11% | $11,678,104 |
| Supranational Obligations | 30% | 2.16% | $4,125,050 |
| Municipal Securities | 100% | 12.46% | $23,801,368 |
| Total Investments | 100% | $191,007,754 |
Portfolio composition by asset class, quarter ending June 30, 2026. Source: City of Lodi Quarterly Investment Report.
Multi-Quarter Trend (December 2024 – June 2026)
The archived Finance Reports on lodi.gov show no March 31, 2026 report; the sequence goes December 31, 2025 → June 30, 2026, a six-month gap. Recorded values in dollars:
| Category | 12/31/2024 | 3/31/2025 | 6/30/2025 | 12/31/2025 | 6/30/2026 |
|---|---|---|---|---|---|
| U.S. Treasury | 3,554,465 | 3,342,043 | 3,120,201 | 2,324,621 | 494,876 |
| U.S. Agency | 20,656,365 | 17,201,566 | 17,297,083 | 23,907,795 | 21,819,212 |
| CD (local) | 784,313 | 784,313 | 820,097 | 834,448 | 834,448 |
| Negotiable CDs | 3,688,386 | 3,439,973 | 3,205,214 | 3,733,565 | 3,481,393 |
| LAIF | 48,888,674 | 49,414,152 | 49,958,763 | 51,057,833 | 52,103,336 |
| Money Market | 12,468,010 | 23,359,618 | 31,573,733 | 8,570,782 | 25,739,545 |
| Medium Term Notes | 28,388,186 | 26,364,482 | 24,065,106 | 51,850,688 | 46,930,420 |
| JPA Pool | 11,003,503 | 11,195,906 | 11,343,695 | 11,607,253 | 11,678,104 |
| Supranational | 8,060,366 | 6,902,898 | 6,951,651 | 7,016,816 | 4,125,050 |
| Municipal | 42,161,460 | 40,186,230 | 36,126,239 | 27,454,932 | 23,801,368 |
| Total Investments | 179,653,726 | 182,191,179 | 184,461,783 | 188,358,735 | 191,007,754 |
| Cash in Bank | 46,095,308 | 58,793,699 | 57,548,159 | 36,910,702 | 51,037,714 |
| Grand Total | 225,749,034 | 240,984,879 | 242,009,942 | 225,269,437 | 242,045,468 |
Quarterly recorded values for the four asset classes with the largest movement, December 2024 through June 2026.
Items of Interest and Potential Impacts
- Reallocation into Medium Term Corporate Notes. MTN holdings nearly doubled year over year — from $24.1M (6/30/2025) to $46.9M (6/30/2026), a $22.9M / 95% increase. The buildout began in late 2025 and now sits at 24.57% of a 30% policy cap. MTN is the primary yield engine but concentrates the portfolio in bank, insurance, and blue-chip corporate credit risk.
- Municipal runoff. Municipal securities have declined for four consecutive quarters, from $42.2M (12/31/2024) to $23.8M (6/30/2026) — a $18.4M / 44% reduction driven by maturities of low-coupon (1.05%–1.76%) pre-2022 California muni paper that is not being replaced at the same pace.
- U.S. Treasury exposure collapsed. From $3.55M to $0.49M (-86%). Only two Treasuries remain; both mature by year-end. Absent reinvestment, direct Treasury exposure will hit zero.
- Supranationals down 47% year over year ($7.9M → $4.1M); Negotiable CDs drifting sideways.
- LAIF grew every quarter from $48.9M to $52.1M — a deposit-driven trend rather than an active allocation choice; the $75M-per-account statutory ceiling is not yet a binding constraint.
- Money-market swings. MMFs went from $12.5M to $23.4M to $31.6M to $8.6M to $25.7M — normal cash-management behavior around large receipts and transfers, worth flagging so it is not misread as strategy.
- Concentration. LAIF plus demand deposits plus money-market funds equals $128.9M / 53.25% of the total book — a comfortable liquidity posture, arguably rich if higher yields are available further out the curve.
- Reporting cadence. Government Code §53646 requires quarterly reports within roughly 30 days of quarter-end. The absence of a March 31, 2026 report in the archive means the Committee is receiving two quarters of activity at a single sitting — at the outer edge of typical practice.
- Signature governance. The last three quarterly reports carry different Treasurer signatures (Lindsay → Jaromay → Bandy). Continuity of investment strategy through that turnover is not evident from the numbers alone; the MTN buildout began under Jaromay and has continued under Bandy.
B.3 — Purchasing Policy: Federal Funding Language Updates
Trigger and Context
Following the July 1, 2026 comprehensive Purchasing Policy revision (product of the January-June 2026 Finance Committee cycle), the Public Works Transit Division underwent an extensive FTA audit. The FTA asked the City to more clearly incorporate federal procurement requirements applicable to FTA-funded purchases into the written Purchasing Policy. The staff fiscal-impact statement is unusually blunt: without adoption, the City's ability to make FTA-funded purchases and be reimbursed may be affected, with delayed or denied reimbursements, questioned costs, or other FTA corrective action as potential consequences. That converts adoption from a discretionary policy choice into an audit corrective action.
Lodi's Purchasing Policy adoption history: Council adoption August 19, 2020; first revision May 20, 2022; second revision July 1, 2026 (the nine-point rewrite); third revision planned October 2026. Two revisions within four months would be unusually rapid — the driver is explicitly regulatory.
Redline Changes, Page by Page
Pages 22–23 — FTA Requirements for Rolling Stock and Related Equipment
For any procurement funded in whole or in part with FTA funds, the City must comply with applicable FTA requirements, FAST Act §3019, and 49 U.S.C. §5323(u). Departments must identify federal requirements, incorporate them into solicitations and contracts, coordinate with the grant administrator, and retain certifications, federal clauses, approvals, and supporting records. For Lodi, "rolling stock" is the GrapeLine and Vine Line transit fleet.
Page 23 — Buy America Pre-Award and Post-Delivery Reviews
For federally funded rolling stock, the City must complete a Buy America pre-award review before award and a Buy America post-delivery review before acceptance. Buy America requires at least 70% of component costs to be produced domestically and final assembly to occur in the United States. Documentation lives in the procurement file; appropriate staff must be trained.
Page 23 — Cooperative Purchasing Agreements
New language clarifies that piggybacking on another agency's cooperative or intergovernmental contract does not relieve Lodi of the duty to verify federal clauses, certifications, Buy America compliance, and suspension/debarment status. This is a significant tightening — cooperative purchasing is a common shortcut for smaller cities buying transit vehicles under state or joint-powers contracts.
Pages 23–24 — Independent Cost Estimates and Cost/Price Analysis
For federally funded procurements exceeding the Federal Simplified Acquisition Threshold ($150,000 per 2 CFR §200.323), the City must prepare a documented Independent Cost Estimate (ICE) before receiving bids or proposals and perform a written cost or price analysis. This applies to contract modifications too. Documentation supporting the ICE must be retained.
Page 25 — Master Federal Clauses Checklist
The City must maintain and use a Master Federal Clauses Checklist to document that required federal clauses (2 CFR Part 200 Appendix II, FTA Master Agreement) are reviewed and inserted into federally funded contracts before execution. Departments complete and maintain the checklist in the procurement file; staff must be trained on the checklist and on updates to federal procurement procedures.
Page 26 — FTA-Specific Contract Provisions
A red-text preamble in front of the Appendix II boilerplate clarifies that additional FTA-specific requirements may apply to federally funded transit procurements, including rolling stock, and directs departments to consult applicable FTA guidance.
Page 27 — Suspension and Debarment (SAM.gov) Verification
A new red-text version of Appendix II item (H) requires that, prior to entering into any federally funded or federally assisted transaction, the City verify contractors and applicable lower-tier participants against SAM.gov and retain evidence of the search in the procurement file. Staff must be trained.
What Remains Unchanged
Dollar thresholds are untouched: City Manager authority $80,000 plus annual CPI (SF-Oakland-Hayward CPI-U); Department Directors $40,000; formal-bid threshold $80,000; vehicles greater than $100,000 require Council approval. Local vendor preference (5%, capped at $50,000, with the express carveout that it does not apply when federal or state grant funding conditions prohibit it) is preserved. Public Works thresholds ($75,000 and $220,000) are preserved. Records retention remains seven years for successful procurements.
Committee Decision Points to Watch
- Whether the Committee accepts the FTA-driven redline as drafted and forwards it to Council for the anticipated October 2026 adoption, or asks for changes (for example, more explicit training-frequency thresholds or a matrix mapping the Federal Clauses Checklist to specific solicitation types).
- Whether the Committee asks staff to schedule the delayed March 31, 2026 investment report retroactively or clarify going-forward cadence expectations under Government Code §53646.
- Whether the Committee gives any direction on the continued rebalancing away from Treasuries and municipals toward Medium Term Corporate Notes now that MTN sits at 24.57% of a 30%-capped bucket.
References
- Lodi Finance Committee Special Meeting Agenda and Materials, September 16, 2026 (PDF)
- Finance Committee packet — June 10, 2026
- Finance Committee packet — April 15, 2026
- Finance Committee packet — March 11, 2026
- Lodi Finance Committee — official page
- City of Lodi Finance Reports archive
- City of Lodi Finance Reports landing page
- City of Lodi Investment Policy (adopted June 20, 2024)
- Governing statute for the quarterly investment report — California Government Code §53646
- Federal procurement authorities — 2 CFR Part 200 (Uniform Guidance); FAST Act §3019; 49 U.S.C. §5323(u); Executive Orders 12549 and 12689 (SAM.gov)
- Contact: Treasurer Jamie Bandy — jbandy@lodi.gov